CONTENTS CONSTITUTIONS FERNKLOOF ESTATE MASTER PROPERTY OWNERS CONSTITUTION FERNKLOOF VILLAGE PROPERTY OWNERS CONSTITUTION

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1 CONTENTS GENERAL INFORMATION INTRODUCTION ESTATE LAYOUT PRECINCT LAYOUTS CADASTRAL DRAWINGS GOLF COURSE RULES PROPERTY OWNERS AND GOLF COURSE AGREEMENT ESTATE RULES ESTATE RULES CONSTITUTIONS FERNKLOOF ESTATE MASTER PROPERTY OWNERS CONSTITUTION FERNKLOOF VILLAGE PROPERTY OWNERS CONSTITUTION ARCHITECTURAL GUIDELINES SUMMARY OF GUIDELINE APPROVAL GUIDELINES FOR THE SUBMISSION OF BUILDING PLANS ARCHITECTURAL GUIDELINES PLEASE DOWNLOAD SEPARATE PDF DOCUMENT PAINT COLOUR CHART CONTRACTORS AGREEMENT CONTRACTORS AGREEMENT ENVIRONMENTAL MANAGEMENT INTRODUCTION OPERATIONAL ENVIRONMENTAL MANAGEMENT PLAN SITE ENVIRONMENTAL PLAN BUILDING OPERATIONS REQUIREMENTS PRIOR TO CONSTRUCTION HANDOVER PROCEDURE MUNICIPAL APPLICATIONS MUNICIPAL ESTIMATES APPLICATION FORMS PEC APPLICATION (ELECTRICAL SERVICE PROVIDER)

2 INTRODUCTION This handbook is designed as a quick reference in order to assist you the homeowner in getting started and as a guide to the Rules and Regulations of the Estate. The contents might change from time to time, whereupon we will endeavour to notify you of these changes. If you have any queries, the following persons may be contacted: Estate Manager Eric Theron Managing Agent Carin Papenfus Precinct 1 consists of independent single residential erven and does not have its own constitution. Precincts 2, 5, 6, 7 & 8/9 each have their own Home Owners Association (HOA) regulated by a constitution. Precinct 3 and 4 consist of golf lodges and will be developed on a sectional filfle basis. The six properties in precinct 1 as well as all the homeowners associations and any body corporate all belong to the Master Property Owners Association (MPOA), which is regulated but its own constitution. PRECINCTS MAKING UP FERNKLOOF ESTATE Precinct 1 Fairbanks Village Independent Precinct 2 Innesbrook Village Home Owners Association Precinct 5 Prestwick Village Home Owners Association Precinct 6 Lakewood Village Home Owners Association Precinct 7 Hillside Village Home Owners Association Precinct 8/9 Fernkloof Village Home Owners Association Precincts 3&4 Golf Lodges Body Corporates GOLF CLUB MEMBERSHIP A total of 300 Hermanus Golf Club (HGC) memberships are available on completion of the 27 holes (240 for the single residential and 60 for lodges). The anticipated date that the applications will be made available is in June 2007.

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4 ESTATE RULES 1.0 INTRODUCTION The Fernkloof Estate ( the Estate ) has been designed to provide a comfortable and secure living environment and lifestyle for the residents of the Estate. The intention of these rules is that of protecting and enhancing this lifestyle and the environment of the Estate. These rules are binding upon all owners, residents, visitors and contractors, as are decisions taken by the trustees in interpreting or enforcing these rules. The registered owners of properties are responsible for ensuring that members of their families, tenants, visitors, friends and all their employees are aware of, and abide by, these rules. The Fernkloof Master Property Owners Association (MPOA) reserves the right to modify, amend, add to, or delete any of these rules from time to time. This document should be read in conjunction with the other documentation issued to purchasers that includes the design guidelines for the Fernkloof Estate, the Constitution of the Fernkloof Master Property Owners Association, the Constitution of the relevant Precinct Estate Property Owners Association, golf course constitution, and the Contractors Agreement which stipulates the conditions under which construction may take place on the Estate. The Fernkloof Estate is a private estate, which permits a higher degree of control of the living environment than would be the case in a normal suburb.

5 Therefore these structures have been set up to manage this environment and to exercise certain objectives such as access control and general on site security. 2.0 USE OF THE STREETS 2.1 The speed limit is 20kph. 2.2 The use of motorcycles, quad bikes, scramblers, motorised scooters or other vehicles with noisy exhaust systems is prohibited anywhere on the Estate. 2.3 Hooting at the entrance or anywhere within the estate is prohibited. 3.0 LANDSCAPING & MAINTENANCE OF VERGES 3.1 It is a requirement that the homeowner landscape and maintain the verge(s) adjacent to his property and that the road surface is kept free from sand, stone or any other foreign material emanating from the verge. 3.2 UNDER NO CIRCUMSTANCES MAY ANY TREES BE REMOVED ON THE GOLF COURSE. However, under special circumstances, application can be made in writting to the MPOA for removal of trees on the housing precincts. 4.0 REFUSE REMOVAL 4.1 Once you have taken possession of your house, refuse removal is to be outsourced or undertaken by the local authority on designated days. These days and type of bins to be used will be advised to residents. 5.0 DOGS AND OTHER ANIMALS 5.1 All dogs should be kept on a leash at all times when on the common property. No resident shall permit their dog(s) to cause a nuisance to other residents. This applies particularly to barking and defecating on common areas. 6.0 LETTING AND RE-SELLING 6.1 Resales on any properties during the development period may only occur through the lead agent appointed by the Developer or the development facilitator from time to time. 6.2 Re-sales and letting of property is permitted by outside agents who are accredited with the POA.

6 6.3 Properties may be viewed by appointment only. No show days are permitted. 6.4 No signage is permitted on any plot or on any part of the common property, unless approved by the MPOA. 7.0 PAYMENT OF LEVIES 7.1 Levies are due and payable by debit order on the first day of each and every month. Interest of 4% above prime will be raised on all amounts in arrears. The levy amount (currently R70 (MPOA) and R330 (HOA) per month) is determined annually based on a budget prepared by the trusties and adopted by the AGM. Fairbanks Village is exempt from paying POA levies. Bank details REFERENCE: STAND NUMBER / PRECINCT NAME / SURNAME Voëlklip Administration CC t/a Fernkloof Estate POA Trust First National Bank, Hermanus Branch Code: Account Number: SECURITY AND ACCESS CONTROL 8.1 A central feature to the quality of life at the Fernkloof Estate is security. The Estate is protected by electrified fencing that is designed to prevent unauthorised access to the Estate The fence is also intended to deter baboons from entering the Estate. The electrical fencing will be monitored by the gatehouse closest to it, Initially gatehouses (excluding the lodges) will be manned from 6h00 to 18h00 daily. Each gate house will control their own access system. The office for the Estate manager will be situated at Lakeside village (as from January 2007). 8.2 An important element of a secure lifestyle is that of prevention and deterrence. Residents are requested to familiarise themselves with the procedures which have been developed to manage the influx of people and vehicles with the minimum disruption whilst at the same time protecting the residents. From time to time certain changes may be made to some of these procedures, and residents will be advised accordingly. Residents are reminded that they have the responsibility for the conduct of their visitors and for ensuring that they adhere to the security procedures.

7 9.0 REMOVAL OF ALIEN VEGETATION 9.1 Property owners must ensure that properties are free of weeds and alien vegetation and that undeveloped erven are neat and tidy at all times. In this regard the relevant precinct POA and/or the MPOA shall be entitled without prior notification to clear any property of alien vegetation and recover the cost thereof from the relevant property owner. 9.2 Property owners are required to take appropriate steps to ensure that any surface erosion does not result in the accumulation of soil on the roads and sidewalks APPOINTMENT OF CONTRACTORS 10.1 Once appointed by the property owners, Contractors will be required to enter into a Contractors Agreement with the MPOA. The agreement is designed to regulate the activities and conduct of contractors within the Estate MAINTENANCE OF STRUCTURES INCLUDING BOUNDARY WALLS: 11.1 Homeowners are required to maintain all structures on their properties, including boundary walls, in good condition BUILDING HOURS 12.1 Building hours are restricted to the following times: Monday Friday 07h00 to 17h00 (Estate to be vacated by 17h30) Saturday 08h00 to 13h00 (Estate to be vacated by 13h30) Sunday Public Holidays No work permitted No work permitted 13.0 DOMESTIC STAFF 13.1 The relevant precinct POA and/or the MPOA shall be entitled to require that details of domestic staff be supplied to and shall furthermore be entitled to put into place such procedures as may be applicable for the control of access to the Estate by domestic staff.

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9 C O N S T I T U T I O N FERNKLOOF ESTATE MASTER PROPERTY OWNERS ASSOCIATION ( the Master POA ) a body corporate established in terms of section 29 of the Land Use Planning Ordinance (No 15 of 1985)

10 2 1. ESTABLISHMENT IN TERMS OF STATUTE The Fernkloof Estate Master Property Owners Association is constituted as a body corporate in terms of section 29 of the Land Use Planning Ordinance (No 15 of 1985) (as amended) in accordance with the conditions imposed by the Overstrand Municipality when approving in terms of sections 25(1) and 42 of the said ordinance the subdivision of the consolidated property known as the Hermanus Golf Estate and shall come into existence simultaneously with the registration in the deeds office of the first of the erven in the development. 2. INTERPRETATION In this constitution: 2.1 the following words shall, unless the context otherwise requires, have the meanings hereinafter assigned to them: "Association" means the Fernkloof Estate Master Property Owners Association ( the Master POA ); "auditors" mean the auditors of the Association; "business day" means a weekday other than Saturdays, Sundays and public holidays; "chairperson" means the chairperson of the trustee committee; "common areas" mean the following: the wetlands on the golf course as depicted on the plans annexed hereto marked "Wetland 1" and "Wetland 2" respectively (unless the ownership thereof and/or the obligation for maintenance thereof is passed to the golf club); and the control room/s for the control of the electrification of the external perimeter walls and fences (if applicable); any other area/s and/or facilities which the trustee committee may designate as common areas from time to time;

11 3 and includes all common areas designated as such in any further phase/s of the development; "Council" means the Overstrand Municipality or its successor/s in title; "design guidelines" means the design guidelines to control all aspects of design and landscaping of any development on the land, as amended from time to time in terms of this constitution or as required by the Council or the development facilitator; "developer" means the Overstrand Municipality which may be represented by the appointed development facilitator, Rabcav Joint Venture, a joint venture between Cavcor (Proprietary) Limited (Registration No 1994/ /07) and Rabie Property Projects (Proprietary) Limited (Registration No 1990/001920/07), and includes its successor/s in title or assign/s as developer of the land; "developer trustee" means a trustee appointed by the developer; "development" means the development or developments established or to be established on the land, and includes all such additional area/s as may be incorporated as further phases into the development in terms of clause 38.1 below; "development period" means the period from the incorporation of the Association until all the erven in the development have been sold and transferred by the developer, including all such additional area/s as may be incorporated as further phases into the development in terms of clause 38.1 below, or until the date of completion of the services by the developer in the development, as certified by the relevant authority, whichever occurs last; estate manager means a person appointed to manage and administer the affairs of the Fernkloof Estate Master POA, the offices of which shall be situated at the entrance gate into the land comprising the Lakewood Village precinct; "erven" mean the erven in the development, and "erf" means any one of them;

12 "golf club" means the Hermanus Golf Club and includes its successor/s in title; "in writing" means written, printed or lithographed or partly one and partly another, and other modes of representing or producing words in a visible form; "land" means any land within Fernkloof Estate which includes any further land which may be incorporated into the Fernkloof Estate development by the developer from time to time in terms of clause 38 below; "LUPO" means the Land Use Planning Ordinance (Ord 15 of 1985); "member" means a member of the Association and includes the developer in its capacity as such during the development period; "member trustee" means a trustee appointed by the members; "month" means a calendar month; "occupation right" means a right of occupation in respect of any dwelling in the development which is registered in the deeds office as a registered life right in terms of a retirement scheme or registered leasehold right; "office" means the registered office of the Association; "precinct developments" mean the developments established or to be established on the precincts 2 to 9 on the land, and "precinct development" means any one of them; "precinct 1 member" means a member of the Association pursuant to such member being the registered owner of a single residential erf in precinct 1 as contemplated in clause below; "prime rate" means a rate of interest per annum which is equal to the published minimum lending rate of interest per annum charged by ABSA Bank, compounded monthly in arrears on the unsecured overdrawn current accounts of its most favoured corporate clients in the private sector from time to time. (In the case of a dispute as to the rate so payable, the rate shall be certified by any manager or

13 5 assistant manager of any branch of the said bank, whose certificate shall be final and binding on the parties); "property owner" means any of the following persons: any precinct 1 member; and any member of a property owners association constituted in terms of LUPO in respect of a precinct development on the land; and any member of a body corporate constituted in terms of the Sectional Titles Act (Act 95 of 1986) in respect of a sectional title scheme on a portion of the land; and any member of a property owners association constituted in respect of any adjacent or bordering properties as contemplated in clause 39 below; "rules" mean the rules imposed by the developer or the trustees from time to time relating to the management of the development; "sectional title unit" means a dwelling unit in a sectional title scheme in the development, but excludes a unit designated for other purposes, e.g. a garage or storeroom; "single residential erf" means an erf in the development on which only one dwelling house is lawfully permitted; "special resolution" means a resolution passed at a special general meeting in accordance with the provisions of clause 29 below; "trustee committee" means the board of trustees of the Association; "trustee" means a member of the trustee committee; "vice-chairperson" means the vice-chairperson of the trustee committee; "year" means a calendar year; 2.2 unless the context otherwise requires, any words importing the singular shall include the plural, and vice versa and words

14 6 importing any one gender only shall include the other two genders; 2.3 the headings to the respective clauses are for reference purposes only and shall not be taken into account in the interpretation of these clauses; 2.4 where consent or approval of the Association is required for any act by a member, such consent or approval shall be in writing and duly signed by the Association, and shall be given prior to the member taking action; 2.5 reference to "this constitution" means this constitution and all rules, regulations and by-laws of the Association from time to time enforced. 3. PURPOSE DESCRIBING MAIN BUSINESS The main business of the Association is to carry on the promotion, advancement and protection of the common interests of the members of the Association from time to time and the maintenance and control of the common areas. 4. MAIN OBJECT The main object of the Association is: 4.1 the control and maintenance over: the external perimeter walls and fences but specifically excluding the entrances, gate houses, walls and fences on the perimeter of each precinct development and access permits which will be controlled and maintained by the property owner associations established or to be established in respect of the precinct developments, (except in the case of the office of the estate manager which shall be situated at the gated entrance into the Lakewood Village precinct which office is for the use of the Fernkloof Estate Master POA in respect of which the costs of internal maintenance pro rata costs of external maintenance of the office structure shall be the responsibility of the Fernkloof Estate Master POA); the external electrification system of the perimeter walls and fences including the control room/s for the control thereof (if applicable); and

15 the wetlands on the golf course referred to in clause above, provided that any amount to be spent on the maintenance of the wetlands shall be determined in conjunction with the Council and the Botanical Society on an annual basis (unless this is carried out by the golf club); all other common areas designated as such by the trustee committee from time to time; 4.2 the control over the compliance and enforcement of the design guidelines and the provisions of the relevant contractor's agreements; 4.3 the promotion, advancement and protection of the common interests of the members generally; 4.4 to enter into services agreements with the local authority or any other authority or supplier of services in regard to the supply of services in respect of the common areas. 5. FINANCIAL YEAR END The financial year end of the Association is 30 June of each year or such other date as the trustees may decide from time to time. 6. MEMBERSHIP OF THE ASSOCIATION 6.1 Membership of the Association shall be compulsory for the following persons: each registered owner of a single residential erf on precinct 1 ("precinct 1 member"); each property owners association constituted in terms of LUPO in respect of a precinct development on the land; each body corporate constituted in terms of the Sectional Titles Act (Act 95 of 1986) in respect of a sectional title scheme on a portion of the land; the developer in its capacity as such, whether it is the owner of land (or any portion thereof) or not, during the development period; each property owners association constituted in respect of any adjacent or bordering properties as contemplated in clause 39 below.

16 8 6.2 The Hermanus Golf Club shall be entitled to nominate 3 representatives to attend all meetings of members of the Association in an information sharing and advisory capacity provided, however, that such representatives shall not be entitled to any voting rights at such meeting. 6.3 The trustee committee may, by regulation, provide for the issue of a membership certificate, which certificate shall be in such form as may be prescribed by the trustee committee. 6.4 The rights and obligations of a member shall not be transferable and every member shall: to the best of such member's ability further the objects and interests of the Association; and observe all by-laws and regulations made by the Association or the trustee committee; provided that nothing contained in this constitution shall prevent a member from ceding such member's rights in terms of this constitution as security to the mortgagee of the single residential erf, sectional title unit or occupation right of such member, as the case may be. 6.5 The developer or its nominee/s shall be entitled on behalf of the Association to sign all such documents as may be necessary in order to enable the developer to give transfer of erven sold by the developer to the purchaser thereof. 6.6 A member shall not be entitled to: consolidate two or more erven into one erf; a member shall remain liable for the payment of levies in respect of each of the erven which form part of the consolidated erf; subdivide an erf into two or more portions; a member shall be liable for the payment of levies in respect of each new erf which shall come into existence as a result of the subdivision of the erf; without the prior written approval of the Association and the property owners association in respect of the relevant precinct development, which approval may be withheld for any reason.

17 9 7. TERMINATION OF MEMBERSHIP 7.1 When the affairs of any member, save for the developer, are terminated and such member is wound up, such member shall ipso facto cease to be a member of the Association with effect from the date upon which such member is finally wound up. 7.2 The developer shall be entitled to cede all of its rights in terms of this constitution and the transferee shall be entitled to exercise such rights. 7.3 The developer may at any time abandon, in writing, in whole or in part, any rights conferred upon it in terms of this constitution. 7.4 When a precinct 1 member ceases to be the registered owner of a single residential erf within precinct 1, such member shall ipso facto cease to be a member of the Association. 7.5 No member ceasing to be a member of the Association for any reason shall, (nor shall any such member's executor, curators, trustees or liquidators) have any claim upon or interest in the funds or other property of the Association, but this clause shall be without prejudice to the rights of the Association to claim from such member or his estate any arrears of subscriptions or other sums due from him to the Association at the time of his so ceasing to be a member. 8. ALIENATION 8.1 No precinct 1 member shall be entitled in any manner to: sell, transfer and/or alienate such member's property (or any part thereof), unless it is a condition of such alienation that: the transferee becomes a member of the Association; the registration of transfer of the property concerned (or any part thereof) into the name of the transferee shall ipso facto constitute the transferee becoming a member of the Association, which consent shall be given provided that the transferee of such property (or any part thereof) agrees in writing to be bound by the provisions of this constitution (including any rules and regulations made thereunder), and provided further that such member has paid all levies and other amounts owing by such

18 10 member to the Association as at the date of transfer of such property (or any part thereof); such member first obtains the written consent of the Association which consent shall be given provided that the Purchaser and/or transferee of such single residential erf agrees in writing to abide by the provisions of the constitution of the Association (including all rules made by the trustees and/or the developer in terms of this constitution), and provided further that such member has paid all levies and any other amounts owing by such member to the Association as at the date of transfer of such single residential erf, and provided further that such member has complied with all such member's obligations in terms of the constitution. 8.2 The registered owner of a property within precinct 1 shall not be entitled to resign as a member of the Association. 8.3 It is recorded that owners of properties within the precinct developments are currently also required to obtain consent from the Fernkloof Estate Master POA to the sale, transfer and/or alienation of such member's property (or any part thereof) and that such owners shall be required to comply with the requirement of their relevant precinct POA requirements before such consent will be issued by the Fernkloof Estate Master POA 9. LEVIES PAYABLE BY THE MEMBERS 9.1 The trustee committee shall from time to time, impose levies upon the members for the purpose of meeting all the expenses which the Association has incurred, or to which the trustee committee reasonably anticipates the Association will be put to by way of: maintenance, repair, improvement and keeping in order and condition of the common areas including, specifically landscaping, all township services, sewage treatment, the security systems to be installed on the common areas; and/or payment of all rates and other charges payable by the Association in respect of the common areas, if any, and/or for services rendered to it, and/or

19 payment of all expenses necessary or reasonably incurred in connection with the management of the Association, the common areas and the Association's affairs. In calculating levies, the trustee committee shall take into account, income, if any, earned by the Association. 9.2 The trustee committee shall estimate the amount which shall be required by the Association to meet the expenses during each year, together with such estimated deficiency (if any) as shall result from the preceding year, and shall impose a levy upon the members equal as nearly as is reasonably practical to such estimated amount. The trustee committee may include in such levies an amount to be held in reserve to meet anticipated future expenditure not of an annual nature. Every such levy shall be made payable by equal monthly installments due in advance on the first day of each and every succeeding month of such year. 9.3 The trustee committee may from time to time impose special levies upon the members in respect of all such expenses as are mentioned in clause 9.1 (which are not included in any estimate made in terms of clause 9.2), and such levies may be made in the sum or by such installments and at such time or times as the trustee committee shall think fit. 9.4 Any amount due by a member by way of a levy shall be a debt due by such member to the Association. The obligation of a member to pay a levy shall cease upon such member ceasing to be a member of the Association, without prejudice to the Association's right to recover arrear levies. No levies paid by a member shall under any circumstances be repayable by the Association upon such member ceasing to be a member. 9.5 A member shall make payment of the monthly levies by virtue of a debit order drawn on the member's banker. 9.6 The developer shall not be liable for the payment of levies in respect of any unsold erven or undeveloped land arising from the subdivision of the land. 9.7 The trustee committee shall at all times ensure that the maintenance and control of the common areas and the expenditure incurred in respect thereof is carried out in a manner which is fair and equitable to all the members of the Association. 9.8 No member shall be entitled to any of the privileges of membership including voting at any meeting unless and until such member shall have paid every subscription and other sum (if any)

20 12 which shall be due and payable to the Association by such member. 10. DEALING WITH THE COMMON AREAS Neither the whole nor any portion of the common areas shall be: 10.1 sold, let, alienated, otherwise disposed of, subdivided or transferred; or 10.2 mortgaged; or 10.3 subjected to any rights, whether registered in a deeds registry or not, of use, occupation or servitude, (save those enjoyed by the members in terms hereof and any servitudes in favour of the Council as required in terms of any condition of subdivision); without the specific prior written consent of the Council and the sanction of a special resolution of the Association (and no member shall be entitled to unreasonably vote against any such special resolution which may be proposed); or 10.4 built upon, improved or enhanced in value by the construction of buildings, erections, facilities or amenities, without the sanction of a special resolution of the Association, save for any construction relating to the electrical substations or transformers, the construction of the private roads, the landscaping of the private open spaces and all such structures as may be required for purposes of security and communication equipment and/or security and communication personnel. 11. RESPONSIBILITY FOR THE COMMON AREAS The Association acknowledges that the Council shall not be responsible for, and the Association shall be solely responsible for the care, repair, maintenance, cleaning, upkeep, improvement and property control of the common areas, all services therein and any structure or thing erected on or contained therein. 12. DESIGN GUIDELINES 12.1 All buildings and other structures within the development (or any part thereof) shall comply with the provisions of the design guidelines No resident shall be entitled to:

21 erect any new building and/or structures of any nature whatsoever on any erf in the development; make any changes or alterations to existing buildings and/or structures on any erf in the development including changes to the external colour scheme; without the prior written approval of the trustees having regard to the design guidelines, and without execution of the contractors' agreement by all parties thereof The approval of the trustees as contemplated in clause 12.2 shall only be given: after detailed plans of the proposed work have been submitted to the trustees, the architectural review committee or any other competent person (as nominated by the trustees from time to time) which person may be an architect or architects registered within the South African Council of Architects or the Institute of South African Architects; and the trustees or their nominee/s are satisfied that the proposed work is in accordance with the design guidelines for the purposes of which the trustees, the architectural review committee and/or any other nominee/s shall be the sole arbiter and their decision shall be final and binding on the property owner concerned; and the property owner concerned has made payment of any costs which may be incurred in obtaining this approval, including the costs of the trustees or their nominee/s; and the property owner concerned has paid to the trustees a deposit in such amount as the trustees may from time to time determine in their sole discretion, as security for any damage to any of the common areas, which amount shall be held in trust by the trustees, subject to the provisions of clause 13 below; provided the aforegoing shall not be interpreted as detracting from the sole and final responsibility of the Council to approve or reject building plans Subject to the restrictions imposed or directions given at a general meeting of the Association and subject to the prior written approval by the Council, the trustee committee may from time to time amend, amplify, substitute or add to the provisions of

22 14 the design guidelines. Any such amendment, amplification, substitution or addition shall be subject to a resolution passed by the trustees holding not less than 75% of the total voting rights of the trustees, provided that the developer shall during the development period be entitled to make all such amendments to the design guidelines as the developer in its sole discretion deems fit In the event of any of the provisions of the design guidelines being amended, amplified, substituted or added to, and such amendment, amplification, substitution or addition, in the opinion of the trustee committee, materially affects any further development within the development (or any part thereof), the trustee committee shall give written notice of such amendment, amplification, substitution or addition to all members. Upon receipt of such written notification, the members, except for the developer, shall by written notice inform their respective members of such amendment, amplification, substitution or addition. 13. DEPOSIT FOR DAMAGES 13.1 Each property owner shall, when submitting to the trustees of the relevant precinct developments, for approval the detailed plans for the construction of any building and/or improvements, or alterations or additions to existing improvements in the development, pay to such trustees a deposit in an amount to be determined from time to time by the trustees which amount shall be retained by such trustees in trust until completion by the property owner and/or its contractors of such work, the interest on which deposit shall accrue to the association Upon completion of all such building and other activities, the relevant precinct s trustees shall if they are satisfied that no damage has been effected by the property owner or any of its contractors to the common areas and/or landscaped areas within the development and that the work has been constructed in accordance with duly approved plans, release the building deposit to the property owner, excluding any interest thereon which will accrue to the Association less any fines or penalties payable in terms of the contractors agreement In the event of any landscaped area and/or the common areas having damage due to such work, the property owner shall within 15 days of having been requested to do so in writing by the trustees, rectify the damage to the satisfaction of the relevant precinct s trustees, failing which, such trustees shall be entitled to appoint an independent contractor or contractors to repair the damage and the amount paid to the trustees as a building

23 15 deposit shall be utilised to pay all costs of such repair. If the amount paid to such trustees as a building deposit is not sufficient to cover the cost of such repairs, such trustees shall be entitled to recover the shortfall from the property owner Each property owners association and sectional title body corporate being a member of this Association in terms of clauses or (as the case may be) shall procure that their respective members comply with the provisions of clauses 12 and 13 and hereby indemnify the Association in respect of any loss or damage which the Association may suffer as a result of any such of their respective members not so complying. 14. MANAGING AGENT AND ESTATE MANAGER 14.1 The trustees shall appoint: a managing agent from time to time to control, manage and administer the common areas and to exercise such powers and duties as may be entrusted to the managing agent, including the power to collect levies; and an estate manager to control, manage and administer all building works including the conclusion of contractors agreements with the relevant contractors During the development period and for a period of 3 years thereafter, the developer shall be entitled to appoint the managing agent and the estate manager, which appointment shall be valid and binding on the Association The Association hereby irrevocably appoints the development facilitator in rem suam with power of substitution to be his or her lawful attorney and agent, to appoint on its behalf the managing agent and the estate manager for the development, and to sign all such documents and do all such other things as may be necessary or desirable to give effect to any steps taken by the development facilitator in pursuance of the rights and powers which it may have as agent in terms of this clause 14.3 or at common law. 15. RULES AND CONTRACTS 15.1 Subject to any restrictions imposed or directions given at a general meeting of the Association and subject to the conditions imposed by the Council in approving the rezoning and subdivision of the land and the subdivision of the portions of the land

24 16 comprising the precinct developments, the trustee committee may (but shall not be obliged to) from time to time: make rules but governing, inter alia: the management of the development including (but not limited to) the contractors agreements; the use, occupation and enjoyment of the common areas; the external appearance of and the maintenance of the common areas and the buildings or other improvements erected thereon; the erection of any buildings and/or structures of any nature whatsoever, and the alteration, modification and renovation to such buildings and/or structures on the common areas; enter into agreement(s) with the local authorities governing the matters set out in clause and any other incidental matters Each member undertakes to the Association that such member will comply with, and procure compliance by its members with: the provisions of this constitution; the design guidelines referred to in clause 12 above; any rules made in terms of clause above; any agreement(s) referred to in clause insofar as those agreements may directly or indirectly impose obligations on such member and/or the members of any member referred to in clauses and above; rules made from time to time by the Hermanus Golf Club or its successor/s to protect the interests of the members of the Club and to provide a harmonious lifestyle of high quality to the residents of the development, including (but not limited to) rules relating to the following: the admission of homeowners in the development as members of the Club; the usage of the golf course and access thereto;

25 the use of golf carts and other vehicles; guests or invitees of the property owners shall abide by all the rules and regulations of the Hermanus Golf Club and the property owners have a duty to acquaint themselves with these rules and regulations; the environment including restrictions in regard to noxious or alien vegetation; animals and pets, including the access of animals or pets on the golf course; the prevention of noise or any other form of nuisance, including music and other sounds from properties No guesthouse, bed and breakfast establishment or similar business shall be conduct on or from any erf without the prior written consent of the trustees In the event of any breach of any of the provisions, guidelines, rules and/or agreements referred to in clauses to (both inclusive) by: any precinct member; and/or any member of a member referred to in clauses and above; and/or any person of the household, or guest or lessee of such member's member; such breach shall be deemed to have been committed by the member itself, but without prejudice to the aforegoing, the trustee committee may take or cause to be taken such steps against the person actually committing the breach, as the trustee committee may in its sole discretion deem fit All officials, employees and contractors employed by the Association, local authority, any public service company, the developer and/or development facilitator shall, at all times, have reasonable access to the erven and common areas for purposes of inspecting and/or maintaining all services supplying and/or traversing any part thereof.

26 BREACH 16.1 Should any member: fail to pay on due date any amount due by that member in terms of this constitution or any regulation made thereunder and remain in default for more than 7 days after being notified in writing to do so by the trustees; or commit any other breach of any of the provisions of this constitution or any regulation made thereunder and fail to commence remedying that breach within a period of 7 days after the receipt of written notice to that effect by the trustees and complete the remedying of such breach within a reasonable time; then and in either such event, the trustees shall be entitled (but not obliged) on behalf of the Association, without prejudice to any other rights or remedies which the trustees or the Association or any other member may have in law, including the right to claim damages: to institute legal proceedings on behalf of the Association against such member for payment of such overdue amount or for performance of that member's obligations in terms of this constitution or any regulation made thereunder, as the case may be; or in the case of clause above, to remedy such breach and immediately recover the total cost incurred by the trustees or the Association in so doing from such member In the event of any member disputing the fact that such member has committed a breach of any of the rules and/or guidelines made under this constitution, a committee of 3 trustees appointed by the chairperson for the purpose shall adjudicate upon the issue at such time and in such manner and according to such procedure (provided that natural justice shall be observed) as the chairperson may direct Notwithstanding anything to the contrary contained in this constitution, the trustee committee may in the name of the Association enforce any provisions of the constitution (including any rules and/or guidelines made hereunder) by civil application or action in a court of competent jurisdiction (including by arbitration in terms of clause 34 below) and for this purpose may appoint attorneys and counsel, as the trustee committee may deem fit.

27 Without prejudice to all or any of the rights the trustees or the Association granted under this constitution, should any member fail to pay any amount due by that member on due date, then such member shall pay interest thereon at the prime rate plus 4% calculated from the due date for payment until the actual date of payment of such amount Should the trustees institute any legal proceedings against any member pursuant to a breach by that member of this constitution or any regulation made thereunder, then without prejudice to any other rights which the trustees or the Association or any other member may have in law, the trustees shall be entitled to recover from such member all legal costs incurred by the trustees or the Association, including attorney/client charges, tracing fees and collection commission. 17. TRUSTEE COMMITTEE 17.1 Each member (other than a precinct 1 member) shall be entitled to appoint 1 trustee to the trustee committee. The precinct members shall collectively be entitled to appoint 1 trustee to the trustee committee During the development period, the trustees of the Association shall be divided into two classes, namely developer trustees and member trustees. Upon expiry of the development period, there shall only be member trustees Until the first trustees of the Association are appointed, the developer shall be entitled to carry out all the functions and duties of the trustees in terms of this constitution. 18. REMOVAL AND ROTATION OF TRUSTEE MEMBERS 18.1 Each trustee, except for the developer trustees who shall not be required to rotate on an annual basis, shall continue to hold office until the annual general meeting next following his said appointment, at which meeting each trustee shall be deemed to have retired from office as such, and shall be eligible for reappointment to the trustee committee by the member concerned in terms of clause 17.1 above A trustee shall be deemed to have vacated his or her office as such upon: his or her estate being sequestrated, whether provisionally or finally, or surrendering his or her estate;

28 his or her making any arrangement or compromise with his or her creditors; his or her conviction for any office involving dishonesty; his or her becoming of unsound mind or being found lunatic; his or her resigning from such office in writing delivered to the secretary; his or her death; his or her being removed from office by a special resolution of the members, provided that anything done in the capacity of a trustee in good faith, by a person who ceases to be a trustee, shall be valid until the fact that he or she is no longer a trustee has been recorded in the minute book of the trustee committee Upon any vacancy occurring on the trustee committee prior to the next annual general meeting, the vacancy in question shall be filled by a person nominated by the member which appointed such trustee in terms of clause 17.1 above The developer may at any time and from time to time remove and replace any developer trustee at any time on written notice to the remaining trustees. 19. OFFICE OF TRUSTEES 19.1 The trustees shall appoint from amongst themselves, a chairperson and vice-chairperson The first chairperson and the first vice-chairperson may be appointed by the developer, and such office bearers shall hold their respective offices until the first annual general meeting following the date of their appointment, provided that any such office shall ipso facto be vacated by the trustee holding such office upon his or her ceasing to be a trustee for any reason As soon as reasonably possible after the holding of such annual general meeting, the trustee committee shall meet and shall elect from its own number the chairperson and vice-chairperson, who shall hold their respective offices until the annual general meeting held next after their said appointment, provided that the office of the chairperson or vice-chairperson shall ipso facto be vacated by the trustee holding such office upon his or her ceasing to be a

29 21 trustee for any reason. No one trustee shall be appointed to more than one of the aforesaid offices. In the event of any vacancy occurring in any of the aforesaid offices at any time, the trustee committee shall meet to appoint one of their number as a replacement in such office Save as otherwise provided in this constitution, the chairperson shall preside at all meetings of the trustee committee, and all general meetings of members, and shall perform all duties incidental to the office of chairperson and such other duties as may be prescribed by the trustee committee or of members, and to allow or refuse to permit invitees to speak at any such meetings, provided however, that any such invitees shall not be entitled to vote at any such meetings The vice-chairperson shall assume the powers and duties of the chairperson in the absence of the chairperson, or his inability or refusal to act as chairperson, and shall perform such other duties as may from time to time be assigned to him by the chairperson or the trustee committee Trustees shall be entitled to be repaid all reasonable and bona fide expenses incurred by them respectively in or about the performance of their duties as trustees and/or chairperson, vicechairperson, as the case may be, but save as aforesaid, shall not be entitled to any other remuneration fees or salary in respect of the performance of such duties. 20. FUNCTIONS AND POWERS OF THE TRUSTEE COMMITTEE 20.1 Subject to the express provisions of this constitution, the trustee committee shall manage and control the business and affairs of the Association, and shall have full powers in the management and direction of such business and affairs and, save as may be expressly provided in this constitution, may exercise all such powers of the Association, and do all such acts on behalf of the Association as may be exercised and done by the Association, and as are not by this constitution required to be exercised or done by the Association in general meeting, subject nevertheless to such regulations as may be prescribed by the Association in general meeting from time to time, provided that no regulation made by the Association in general meeting shall invalidate any prior act of the trustee committee which would have been valid if such regulation had not been made The trustee committee shall have the right to vary, cancel or modify any of its decisions and resolutions from time to time.

30 The trustee committee may, should it so decide, investigate any suspected or alleged breach by any member or trustee of this constitution, in such reasonable manner as it shall decide from time to time The trustee committee may make regulations and by-laws, not inconsistent with this constitution, or any regulations or by-laws prescribed in the Association in general meeting: as to disputes generally; for the furtherance and promotion of any of the objects of the Association; for the better management of the affairs of the Association; for the advancement of the interests of members; for the conduct of trustee committee meetings and general meetings; and to assist it in administering and governing its activities generally; and shall be entitled to cancel, vary or modify any of the same from time to time. 21. PROCEEDINGS OF THE TRUSTEE COMMITTEE 21.1 The trustee committee may meet together for the dispatch of business, adjourn and otherwise regulate their meetings as they think fit, subject to any provisions of this constitution Meetings of the trustee committee shall be held at least once every 12 months, provided that if all the trustees shall in writing have waived the above requirement in respect of a particular 12 months, then no meeting of the trustee committee need be held for that period The quorum necessary for the holding of any meeting of the trustee committee shall be 3 trustees, provided that during the development period the developer trustees shall be necessary at all meetings of trustee committee to form a quorum Each trustee shall be entitled to the following number of votes:

31 a member trustee, to a number of votes equal to the number of members of such member which appointed such member trustee; the developer trustee, to 1 votes provided that during the development period, the development trustee shall be entitled to the same number of votes of all the other members of the Association plus 1 vote The chairperson shall preside as such at all meetings of the trustee committee, provided that should at any meeting of the trustee committee the chairperson not be present within 5 minutes after the time appointed for the holding thereof, then the vicechairperson shall act as chairperson at such meeting, provided further that should the vice-chairperson also not be present within 5 minutes of the time appointed for the holding of such meeting, those present of the trustees shall vote to appoint a chairperson for the meeting, who shall thereupon exercise all the powers and duties of the chairperson in relation to such meeting Minutes shall be taken at every trustee committee meeting, although not necessarily verbatim. These minutes shall be reduced to writing without undue delay after the meeting and shall then be certified correct by the chairperson of the meeting. All minutes of trustee committee meetings shall after certification as aforesaid be placed in a trustee committee minute book to be kept in accordance, mutatis mutandis, with the provisions of the law relating to the keeping of minutes of meetings of directors of companies. The trustee committee minute book shall be open for inspection at all reasonable times by a trustee, the auditors, and the members All competent resolutions recorded in the minutes of any trustee committee meeting shall be valid and of full force and effect as therein recorded, with effect from the passing of such resolutions, and until varied or rescinded, but no resolution or purported resolution of the trustee committee shall be of any force or effect, or shall be binding upon the members or any of the trustees unless such resolution is competent within the powers of the trustee committee Save as otherwise provided in this constitution, the proceedings at any trustee meeting shall be conducted in such reasonable manner and form as the chairperson of the meeting shall decide A resolution signed by all the trustees shall be valid in all respects as if it had been duly passed at a meeting of the trustee committee duly convened.

32 GENERAL MEETINGS OF THE ASSOCIATION 22.1 The Association shall within 3 calendar months after each financial year of the Association, hold a general meeting as its annual general meeting, in addition to any other general meetings, during such financial year, and shall specify the meeting as such in the notices in terms of clause 23.1 below Such annual general meeting shall be held at such time and place, subject to the aforegoing provisions, as the trustee committee shall decide from time to time All general meetings other than annual general meetings shall be called special general meetings The trustee committee may, whenever they think fit, convene a special general meeting General meetings of the Association shall take place at such place/s as shall be determined by the trustee committee from time to time. 23. NOTICE OF MEETINGS OF THE ASSOCIATION 23.1 An annual general meeting and a meeting called for the passing of a special resolution, shall be called by not less than 21 days' notice in writing at the least, and a special general meeting, other than one called for the passing of a special resolution, shall be called by not less than 14 days' notice in writing. In each case, the notice shall be exclusive of the day on which it is dispatched, and shall specify the place, the day and the hour of the meeting and, in the case of special business, in addition to any other requirements contained in this constitution, the general nature of that business, and in the case of a special resolution, the terms and effect of the resolution and the reasons for it shall be given in the manner hereinafter mentioned or in such other manner (if any) as may be prescribed by the trustee committee to such persons as are under this constitution entitled to receive such notices from the Association; provided that a general meeting of the Association shall, notwithstanding that it is called by shorter notice than that specified in this constitution, be deemed to have been duly called if it is so agreed: in the case of a meeting called as the annual general meeting, by the members holding not less than 75% of the total voting rights of all members; and

33 in the case of a special general meeting, by a majority in number of the members having a right to attend and vote at the meeting, being a majority together holding not less than 50% of the total voting rights of all members The accidental omission to give notice of a meeting or of any resolution, or to give any other notification, or present any document required to be given or sent in terms of this constitution, or the non-receipt of any such notice, notification or document by any member or other person entitled to receive the same, shall not invalidate the proceedings at, or any resolution passed at, any meeting. 24. QUORUM FOR GENERAL MEETINGS 24.1 No business shall be transacted at any general meeting unless a quorum is present when the meeting proceeds to business. The quorum necessary for the holding of any general meeting shall be such of the members entitled to vote in person or by proxy, as together for the time being, represent 50% of the total votes of all members of the Association entitled to vote, for the time being save that not less than 3 members must be personally present and provided further that during the development period, the developer is represented at such meeting If within 30 minutes from the time appointed for the holding of a general meeting a quorum is not present, the meeting, shall stand adjourned for another 30 minutes, and if at such adjourned meeting a quorum is not present, the members present shall be a quorum. 25. AGENDA AT GENERAL MEETINGS In addition to any other matters required by this constitution to be dealt with at an annual general meeting, the following matters shall be dealt with at every annual general meeting: 25.1 the consideration of the chairperson's report; 25.2 the composition of the trustee committee; 25.3 the consideration of any other matters raised at the meeting including any resolutions proposed for adoption by such meeting, and the voting upon any such resolutions; 25.4 the consideration of the balance sheet of the Association for the last financial year of the Association preceding the date of such meeting;

34 the consideration of the report of the auditors; 25.6 the consideration of the total levy (as referred to in clause 8) for the calendar year during which such annual general meeting takes place; and 25.7 the consideration and fixing of the remuneration of the auditors for the financial year of the Association preceding the annual general meeting. 26. PROCEDURE AT GENERAL MEETINGS 26.1 The chairperson shall preside as such at all general meetings, provided that should he or she not be present within 5 minutes after the time appointed for the holding thereof, then the vicechairperson shall act as chairperson at such meeting, provided further that should the vice-chairperson also not be present within 5 minutes of the time appointed for the holding of such meeting, then the members present at such meeting entitled to vote, shall vote to appoint a chairperson for the meeting, who shall thereupon exercise all the powers and duties of the chairperson in relation to such meeting The chairperson may, with the consent of any general meeting at which a quorum is present (and if so directed by the meeting), adjourn a meeting from time to time and from place to place, but no business shall be transacted at any adjourned meeting other than the business which might have been transacted at the meeting from which the adjournment took place Whenever a meeting is adjourned for 10 days or more, notice of the adjourned meeting shall be given in the same manner as of an original meeting. Save as aforesaid, the members shall not be entitled to any notice of adjournment, or of the business to be transacted at an adjourned meeting Except as otherwise provided for in this constitution, all general meetings shall be conducted in accordance with generally accepted practice. 27. PROXIES FOR GENERAL MEETINGS 27.1 A member may be represented at a general meeting by a proxy, who need not be a member of the Association. The instrument appointing a proxy shall be in writing signed by the member concerned or such member's duly authorised agent in writing, but need not be in any particular form, provided that where a member is more than one person, any one of those persons may

35 27 sign the instrument appointing a proxy on such member's behalf, where a member is a company, the same may be signed by the chairperson of the board of directors of the company or by its secretary, and where an Association of persons, by the secretary thereof The instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed, or a copy certified by a commissioner of oaths thereof shall be deposited at the office at any time before the time appointed for the commencement of the meeting, or adjourned meeting, at which the person named in the instrument is proposed to vote. No instrument appointing a proxy shall be valid after the expiration of 12 months from the date of its execution A vote given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous death of the principal or revocation of the proxy, provided that no intimation in writing of the death or revocation shall have been received by the trustee committee at least one hour before the time fixed for the holding of the meeting Should a member be absent from the recorded domicilium address which the trustees may have for such member, for a continuous period in excess of 6 months, a proxy must be appointed by such member prior to such member's absence in accordance with clauses 27.1 and 27.2 above, failing which a member shall not be entitled to vote, at any special general meeting, called during such member's absence. 28. VOTING AT GENERAL MEETINGS 28.1 At every general meeting, every member in person or by proxy and entitled to vote shall have the following votes: where the member is a person referred to in clause above, one vote for each single residential erf owned by such member; where the member is a property owners' association referred to in clause above, the number of votes equal to the number of single residential erven in such member's precinct development; where the member is a body corporate referred to in clause above, the number of votes equal to the number of sectional title units in the sectional title scheme in respect of such member;

36 the developer shall have the number of votes equal to the aggregate number of votes held by all members referred to in clauses to (both inclusive) plus one vote Save as expressly provided for in this constitution, no person other than a member duly registered, and who shall have paid every levy and other amount (if any) which shall be due and payable to the Association in respect of or arising out of his membership, and who is not under suspension, shall be entitled to be present or to vote on any question, either personally or by proxy, at any general meeting At any general meeting any resolution put to the vote of the meeting shall be decided on a show of hands unless the chairperson determines that the relevant decision be taken on a poll or unless a poll is demanded by any member In computing the majority on the poll, regard shall be had to the number of votes cast for and against the resolution An ordinary resolution (that is a resolution other than a special resolution) or the amendment of an ordinary resolution, shall be carried on a simple majority of all the votes cast thereon, and an abstention shall not be counted as a vote for or against the resolution in question. In the case of an equality of votes, the chairperson of the general meeting shall be entitled to a casting vote in addition to his or her deliberative vote Unless any member present in person or by proxy at a general meeting shall have objected to any declaration made by the chairperson of the meeting as to the result of any voting at the meeting, or to the propriety of validity of the procedure at such meeting, such declaration shall be deemed to be a true and correct statement of the voting, and the meeting shall in all respects be deemed to have been properly and validly constituted and conducted, and an entry in the minutes to the effect that any motion has been carried or lost, with or without a record of the number of votes recorded in favour of or against such motion, shall be conclusive evidence of the vote so recorded if such entry conforms with the declaration made by the chairperson of the meeting as to the result of any voting at the meeting. The chairperson of the meeting shall be obliged to announce the result of any voting either at the meeting or as soon as reasonably possible thereof.

37 SPECIAL RESOLUTION 29.1 A resolution by the Association shall be a special resolution if at a general meeting of which not less than 21 clear days' notice has been given specifying the intention to propose the resolution as a special resolution, the terms and effect of the resolution and the reasons for it and at which members holding in aggregate not less than one-fifth of the total votes of all the members entitled to vote thereat, are present in person or by proxy, the resolution has been passed by not less than 75% of the total votes to which the members present in person or by proxy are entitled If less than 20% of the total votes of all the members entitled to attend the meeting and to vote thereat are present or represented at a meeting called for the purpose of passing a special resolution, the meeting shall stand adjourned for 30 minutes After the expiry of the said 30 minute period, the members who are present in person or by proxy and are entitled to vote may deal with the business for which the original meeting was convened and a resolution passed by not less than 75% of the total votes of all the members present or represented at such meeting shall be deemed to be a special resolution even if less than 20% of the total votes are represented after the expiry of the said 30 minute period. 30. OTHER PROFESSIONAL OFFICERS Save as specifically provided otherwise in this constitution, the trustee committee shall at all times have the rights to engage on behalf of the Association, the services of accountants, auditors, attorneys, advocates, architects, engineers, any other professional person or firm and/or any other employee/s whatsoever, for any reasons thought necessary by the trustee committee and on such terms as the trustee committee shall decide, subject to any of the provisions of this constitution, provided that any expenditure incurred in respect of the above, shall not exceed 5% of the total annual levy for the year in question unless authorised by a special resolution. 31. ACCOUNTS 31.1 The Association in general meeting or the trustee committee, may from time to time make reasonable conditions and regulations as to the time and manner of the inspection by the members of the accounts and books of the Association, or any of them, and subject to such conditions and regulations, the accounts and

38 30 books of the Association shall be open to the inspection of members at all reasonable times during normal business hours At each annual general meeting the trustee committee shall lay before the Association a proper income and expenditure account for the immediately preceding financial year of the Association, or in the case of the first account, for the period since the incorporation of the Association, together with a proper balance sheet made up as at the last financial year end of the Association. Every such balance sheet shall be accompanied by proper and extensive reports of the trustee committee and the auditors if appointed, and there shall be attached to the notice sent to members convening each annual general meeting, as set forth in clause 23.1 above, copies of such accounts, balance sheet and reports and of any other documents required by law to accompany the same Should the trustees or the majority of the members so require, the accounts of the Association shall be examined and the correctness of the income and expenditure account and balance sheets ascertained by the auditors at least once a year. 32. SERVICE OF NOTICES 32.1 A notice shall be in writing and shall be given or served by the Association upon any member, either personally or by post in a prepaid registered letter, properly addressed to the member at the address of the erf owned by such member No member shall be entitled to have a notice served on him or her at any address not within the Republic of South Africa, but any member may require the Association, by notice, to record an address within the Republic of South Africa which shall be deemed to be his address for the purpose of the service of notices Any notice by post shall be deemed to have been served at the time when the letter containing the same was posted, and in proving the giving of the notice by post, shall be sufficient to prove that the letter containing the notice was properly addressed and posted The accidental omission to give notice of a meeting to, or the non-receipt of notice of a meeting by, any person entitled to receive notice shall not invalidate the proceedings of that meeting.

39 INDEMNITY 33.1 All trustee members shall be indemnified out of the funds of the Association against any liabilities bona fide incurred by them in their respective said capacities and in the case of a trustee member, in his capacity as chairperson or vice-chairperson, whether defending any proceedings, civil, criminal or otherwise, in which relief is granted to any such person/s by the court Every trustee member, every servant, agent and employee of the Association, shall be indemnified by the Association against (and it shall be the duty of the trustee committee out of the funds of the Association to pay) all costs, losses and expenses (including traveling expenses) which such person or persons may incur or become liable for by reason of any contract entered into, or any act or deed done, by such person or persons in the discharge of any of his/their respective duties, including in the case of a trustee member, his duties as chairperson or vice-chairperson. Without prejudice to the generality of the above, the Association shall specifically indemnify every such person against all losses of whatsoever nature incurred arising out of any bona fide act, deed or letter done or written by him jointly or severally in connection with the discharge of his duties, provided that any such act, deed or letter has been done or written in good faith A trustee member shall not be liable for the acts, receipts, neglects or defaults of the auditors or of any of the other trustee members, whether in their capacities as trustee members or as chairperson or vice-chairperson, or for any loss or expense sustained or incurred by the Association through the insufficiency or deficiency of title to any property acquired by the trustee committee for or on behalf of the Association, or for the insufficiency or deficiency of any security in or upon which any of the monies of the Association shall be invested, or for any loss or damage arising from the insolvency or tortuous act of any person with whom any monies, securities or effects shall be deposited, or for any loss or damage occasioned by any error of judgment or oversight on his part, or for any other loss, damage or misfortune whatever which shall happen in the execution of any of the duties of his office/s or in relation thereto, unless the same shall happen through lack of bona fides or breach of duty or breach of trust No member shall have any claim of any nature whatsoever against the Association for any loss, damage or injury which such member may directly or indirectly suffer (even if such loss, damage or injury is caused through the negligence of the Association, the trustees, or any of the Associations employees or appointees) by reason of any latent or patent defects on the

40 32 development (including the common areas), or fire on the development, or theft from the development, or by reason of any building, improvement or other structure within the development being in a defective condition or state of disrepair or any particular repair not being effected by the Association timeously or at all, by any person whatsoever, or for any purpose whatsoever, or arising from any other cause whatsoever, and each member is advised to take the necessary steps to insure his or her interest. 34. ARBITRATION 34.1 Any dispute, question or difference arising at any time between member or between members and trustees out of or in regard to: any matters arising out of this constitution; or the rights and duties of any of the parties mentioned in this constitution; or the interpretation of this constitution, shall be submitted to and decided by arbitration on notice given by any party to the other parties who are interested in the matter in question Arbitration shall be held in Cape Town informally and otherwise upon the provisions of the Arbitration Act No 42 of 1965 (as amended or replaced from time to time) it being intended that if possible it shall be held and concluded within 21 business days after it has been demanded Save as otherwise specifically provided herein, the Arbitrator shall be, if the question in dispute is: primarily an accounting matter - an independent accountant; primarily a legal matter - a practicing counsel or attorney of not less than 10 years standing; any other matter - an independent and suitably qualified person appointed by the auditors; as may be agreed upon between the parties to the dispute If agreement cannot be reached on whether the question in dispute falls under clauses , or or upon a

41 33 particular arbitrator in terms of clause above, within 3 business days after the arbitration has been demanded, then: the President for the time being of the Law Society of the Cape of Good Hope or its successor/s shall determine whether the question in dispute falls under clauses , or above; or the President for the time being of the Law Society of the Cape of Good Hope shall nominate the arbitrator in terms of clause within 7 business days after the parties have failed to agree so that the arbitration can be held and concluded as soon as possible within the 21 business days referred to in clause 34.2 above The arbitrator shall make his award within 7 days after completion of the arbitration and shall in giving his award, have regard to the principles laid down in terms of this constitution. The arbitrator may determine that the cost of the arbitration may be paid either by one or other of the disputing parties or by the Association as he in his sole discretion may deem fit The decision of the arbitrator shall be final and binding and may be made an order of the Cape Provincial Division of the High Court of South Africa or its successor/s upon the application of any party to the arbitration Notwithstanding anything to the contrary contained in clauses 34.1 to 34.7 (both inclusive), the trustees shall be entitled to institute legal proceedings on behalf of the Association by way of application, action or otherwise in any Court having jurisdiction for the purposes of restraining or interdicting breaches of any of these provisions. 35. AMENDMENTS TO CONSTITUTION This constitution, or any part thereof, shall not be repealed or amended, and no new rules shall be made, save by a special resolution adopted at an annual general meeting or a general meeting of the members and subject further to the prior written consent of the Council being obtained for the amendment of this clause 35 and clauses 1, 2, 3, 4, 6, 7, 8, 9, 11, 37 and 38 of this constitution and subject further to the prior written consent of the developer during the development period being obtained for the amendment of this clause and clauses 37 and 38 of this constitution.

42 EFFECTIVE DATE This constitution shall come into force when the first erf or sectional title unit within the development (or any part thereof) is registered in the deeds office. 37. STATUS OF DEVELOPER During the development period, the following provisions shall apply in addition to the provisions of and notwithstanding anything to the contrary contained in this constitution: 37.1 the developer shall be entitled: to nominate and appoint the chairperson of the trustee committee; to a number of votes equal to the total number of the votes of all members in terms of clause 28.1 plus 1 vote; to impose any rules relating to the management of the development from time to time, as the developer may deem fit, and to amend, amplify, substitute and/or add to any such rules; to make all such amendments to the design guidelines as the developer may in its sole discretion deem fit; to require that the trustee committee enforces the rights granted to it in terms of this constitution against any member who in the opinion of the developer is not complying with his obligations as a member by giving such member written notice in which his failure to comply with the particular provisions of this constitution is detailed and calling upon such member to remedy such failure within a prescribed period of not more than 30 days, failing which, the developer shall be entitled at the sole cost of that member to do all such things as may be required to maintain such building and other improvements on its erf; to erect such signage, flagpoles, messages and/or other forms of notices or advertising on the development including the common areas, the private road area and/or the exterior walls (if any) of the development, subject to the regulations and by-laws of the Council appertaining to signage from time to time;

43 to change the name of the Association from time to time to any name which the developer may deem fit; 37.2 neither the trustee committee nor any member of the Association shall prevent or hinder in any way the developer from: gaining access to and egress from the development; continuing any building operations at the development; provided that, after the termination of the development period, the provisions of this clause 37 shall not be interpreted as allowing the developer access onto any of the erven already transferred to a member unless 48 hours prior written notice has been given to the member concerned. The developer shall make good any subsequent damage to plants, property or improvements thereon to the satisfaction of the member. No member shall be entitled to refuse the developer access if the required notice has been given; 37.3 upon expiry of the development period, the rights of the developer in terms of the provisions of this clause 37 shall immediately terminate ipso facto and no longer be of any force and effect. 38. INCORPORATION OF FURTHER PHASES The developer has a continuing and permanent interest to ensure that certain basic provisions are entrenched in perpetuity to ensure the success of the development. Accordingly, none of the following provisions may be deleted or varied in any way in terms of clause 35 above, without the prior written consent of the developer: 38.1 the developer has the right at any time and from time to time to extend or alter the area or composition of the development by requiring the Association to incorporate into the development any additional areas from time to time as further phases of the development which the developer shall be entitled to develop as it may deem fit; 38.2 should any additional area/s be incorporated into the development in terms of clause 38.1 above, the developer shall be entitled to require that the first and all subsequent owners of erven therein become members of the Association in respect of such erven from such date as the developer may determine, and on the same terms and conditions as are applicable to the other members of the Association. The members shall be bound by any such requirement of the developer.

44 INCORPORATION OF ADJACENT OR BORDERING PROPERTIES 39.1 The developer has the right at any time and from time to time to extend the membership of the Association by requiring the Association to incorporate as a member any property owners association or associations constituted in respect of the owners of any property or properties adjacent to and/or bordering upon the development from time to time Should any such property owners association be incorporated as a member of the Association, it shall become a member of the Association in respect of such property or properties from such date as the developer may determine, and on the same terms and conditions as are applicable to each property owners association constituted in terms of LUPO in respect of a precinct development on the land. oooooo

45 C O N S T I T U T I O N FERNKLOOF VILLAGE (PRECINCT NUMBER 8 & 9) PROPERTY OWNERS ASSOCIATION a body corporate established in terms of section 29 of the Land Use Planning Ordinance (Ord 15 of 1985)

46 2 1. ESTABLISHMENT IN TERMS OF STATUTE The Property Owners Association referred to on the cover page of this constitution is constituted as a body corporate in terms of section 29 of the Land Use Planning Ordinance (Ordinance 15 of 1985) (as amended) in accordance with the conditions imposed by the Overstrand Municipality when approving in terms of sections 25(1) and 42 of the said ordinance of the subdivision of the land which comprises the precinct referred to on the cover page of this constitution ("the land") and shall come into existence simultaneously with the registration in the deeds office of the first of the erven in the development. 2. INTERPRETATION In this constitution: 2.1 the following words shall, unless the context otherwise requires, have the meanings hereinafter assigned to them: "Association" means the Property Owners Association referred to on the cover page of this constitution; "auditors" mean the auditors of the Association; "business day" means a weekday other than Saturdays, Sundays and public holidays; "chairperson" means the chairperson of the trustee committee; "common areas" mean the following: all the private roads and road reserve areas within the development; and all the private open spaces within the development; any other area/s which the board of trustees may designate as common areas from time to time; and includes all common areas designated as such in any further phase/s of the development; "Council" means the Overstrand Municipality or its successor/s in title;

47 "contractors agreement" means the agreement to be entered into between the Association and any constructor appointed to construct an improvement on an erf substantially in accordance with the specimen contractors agreement, which is available for inspection at the offices of the developer; "design guidelines" means the Fernkloof Estate architectural design guidelines to control all aspects of design and landscaping of any development within the Fernkloof Estate development, as amended from time to time in terms of the constitution of the Fernkloof Estate Master POA or as required by the Council or the development facilitator, a copy of the current draft which is available for inspection at the offices of the developer; "developer" means Overstrand Municipality which may be represented by the appointed development facilitator, Rabcav Joint Venture, a joint venture between Cavcor (Proprietary) Limited (Registration No 1994/ ) and Rabie Property Projects (Proprietary) Limited (Registration No 1990/001920/07), and includes its successor/s in title or assign/s as developer of the land; "developer trustee" means a trustee appointed by the developer; "development" means the proposed residential development established or to be established on the land, and includes all such additional area/s as may be incorporated as further phases into the development in terms of clause 41.1 below; "development period" means the period from the incorporation of the Association until all single residential erven, sectional title units and/or occupation rights (as the case may be) in the development have been sold, transferred and/or ceded (as the case may be) by the developer, including all such erven, units and rights in respect of all such additional area/s as may be incorporated as further phases into the development in terms of clause 41.1 below; "erven" mean the erven in the development, and "erf" means any one of them;

48 "estate rules" mean the rules imposed by the developer or the trustees from time to time relating to the management of the development; "Fernkloof Estate development" means the property development or developments on the land known as "Fernkloof Estate" situated at the Hermanus golf course; "in writing" means written, printed or lithographed or partly one and partly another, and other modes of representing or producing words in a visible form; "land" means all the land forming part of the precinct referred to on the cover page of this constitution; "member" means a member of the Association and includes the developer in its capacity as such during the development period; "member trustee" means a trustee appointed by the members; "month" means a calendar month; "occupation right" means a right of occupation in respect of any dwelling in the development which is registered in the deeds office as a registered life right in terms of a retirement scheme or registered leasehold right; "office" means the registered office of the Association; "precinct developments" mean the developments established or to be established on the precincts 2 to 9 on the total land comprising the Fernkloof Estate, and "precinct development" means any one of them; "prime rate" means a rate of interest per annum which is equal to the published minimum lending rate of interest per annum charged by ABSA Bank, compounded monthly in arrears on the unsecured overdrawn current accounts of its most favoured corporate clients in the private sector from time to time. (In the case of a dispute as to the rate so payable, the rate shall be certified by any manager or assistant manager of any branch of the said bank, whose certificate shall be final and binding on the parties); "single residential erf" means an erf in the development on which only one dwelling house is lawfully permitted;

49 "special resolution" means a resolution passed at a special general meeting in accordance with the provisions of clause 32 below; "trustee committee" means the board of trustees of the Association; "trustee" means one of the trustee committee; "vice-chairperson" means the vice-chairperson of the trustee committee; "year" means a calendar year; 2.2 unless the context otherwise requires, any words importing the singular shall include the plural, and vice versa and words importing any one gender only shall include the other two genders; 2.3 the headings to the respective clauses are for reference purposes only and shall not be taken into account in the interpretation of these clauses; 2.4 where consent or approval of the association is required for any act by a member, such consent or approval shall be in writing and duly signed by the Association, and shall be given prior to the member taking action; 2.5 reference to "this constitution" means this constitution and all rules, regulations and by-laws of the Association from time to time enforced. 3. PURPOSE DESCRIBING MAIN BUSINESS The main business of the Association is to carry on the promotion, advancement and protection of the interests of the members of the Association from time to time and the maintenance and control of the common areas. 4. MAIN OBJECT The main object of the Association is: 4.1 the control and maintenance over: all buildings and/or structures within the development, but excluding all buildings and structures within the development, in respect of which maintenance the Fernkloof Master POA is responsible;

50 all private open spaces and private roads, all services, common landscaping, irrigation and amenities on the common areas; all other common areas designated as such by the trustee committee from time to time; 4.2 the control over the compliance and enforcement of the design guidelines; 4.3 the promotion, advancement and protection of the communal and group interests of the members generally, including security; 4.4 to take title to the common areas simultaneously with the first separate registration of an erf; 4.5 to enter into services agreements with the local authority or any other authority or supplier of services in regard to the supply of services in the development, including refuse removal and security services. 5. FINANCIAL YEAR END The financial year end of the Association is 30 June of each year or such other date as the trustees may decide from time to time. 6. MEMBERSHIP OF THE ASSOCIATION 6.1 Membership of the Association shall be compulsory for every registered owner of a single residential erf or occupation right. 6.2 Such membership shall commence simultaneously with registration of such single residential erf or occupation right (as the case may be) into the name of the transferee in the deeds office. 6.3 Membership of the Association shall be limited to: the registered owners of a single residential erf or an occupation right provided that: a person who is entitled to obtain a certificate of registered title to any single residential erf or occupation right shall be deemed to be the registered owner thereof; where any such owner is more than one person, all the registered owners of a single residential erf or occupation right shall be deemed jointly

51 7 and severally to be one member of the Association and nominate one owner to represent them and vote at meetings of the Association; the developer in its capacity as such during the development period. 6.4 When a member ceases to be the registered owner of a single residential erf or an occupation right, he or she shall ipso facto cease to be a member of the Association. 6.5 A member shall not be entitled to: sell or transfer a single residential erf or occupation right, unless it is a condition of the sale and transfer that: the transferee becomes a member of the Association; the registration of transfer or cession (as the case may be) of such single residential erf or occupation right into the name of that transferee shall ipso facto constitute the transferee as a member of the Association; such member first obtains the written consent of the Association which consent shall be given provided that the purchaser, transferee or cessionary (as the case may be) of such single residential erf or occupation right (as the case may be) agrees in writing to abide by the provisions of the constitution of the Association including all rules made by the trustees and/or the developer in terms of this constitution, and provided further that such member has paid all levies and any other amounts owing by him to the Association as at the date of transfer or cession (as the case may be) of such single residential erf or occupation right (as the case may be) including all amounts payable in terms of clauses 7.6 and 7.7; and that such member has complied with all such member's obligations in terms of the constitution; without the prior written approval of the trustees and without signature of the contractors agreement having regard to the design guidelines:

52 erect any new buildings and/or structures of any nature whatsoever on any erf in the development; make any changes or alterations to existing buildings and/or structures on any erf in the development, including changes to the external colour scheme. 6.6 The approval of the trustees as contemplated in clause shall only be given: after detailed plans of the proposed work have been submitted to the trustees, the architectural review committee or any other competent person(s) as nominated by the trustees from time to time (who may be an architect or architects registered with the South African Council of Architects or the Institute of South African Architects); and the trustees or their nominee/s are satisfied that the proposed work is in accordance with the design guidelines for the purposes of which the trustees, the architectural review committee or such other nominee/s shall be the sole arbiter and their decision shall be final and binding on the member, subject to the right of such member to refer their decision to arbitration in terms of clause 37 below; and the member has made payment of any costs which may be incurred in obtaining this approval, including the costs of the trustees or their nominee/s; the member has paid to the trustees a deposit in such amount as the trustees may from time to time determine in their sole discretion, as security for any damage to any of the common areas which amount shall be held in trust by the trustees subject to the provisions of clause 9 below; provided the aforegoing shall not be interpreted as detracting from the sole and final responsibility of the Council to approve or reject building plans. 6.7 A member shall not without the prior written approval of the trustees be entitled to:

53 consolidate 2 or more erven into 1 erf; a member shall remain liable for the payment of levies in respect of each of the erven which form part of the consolidated erf; subdivide an erf into 2 or more portions; a member shall be liable for the payment of levies in respect of each new erf which shall come into existence as a result of the subdivision of the erf. 6.8 The registered owner of a single residential erf, a sectional title unit or an occupation right may not resign as a member of the Association and shall remain a member for as long as such owner is the registered owner thereof. 6.9 The trustee committee may, by regulation, provide for the issue of a membership certificate, which certificate shall be in such form as may be prescribed by the trustee committee The rights and obligations of a member shall not be transferable and every member shall: to the best of such member's ability further the objects and interests of the Association; and observe all by-laws and regulations made by the Association or the trustee committee; provided that nothing contained in this constitution shall prevent a member from ceding such member's rights in terms of this constitution as security to the mortgagee of the single residential erf, sectional title unit or occupation right of such member, as the case may be The developer or its nominee/s shall be entitled on behalf of the Association to sign all such documents as may be necessary in order to enable the developer to give transfer of erven sold by the developer to the purchaser thereof No member ceasing to be a member of the Association for any reason shall, (nor shall any such member's executor, curators, trustees or liquidators) have any claim upon or interest in the funds or other property of the Association, but this clause shall be without prejudice to the rights of the Association to claim from such member or his estate any arrears of subscriptions or other sums due from him to the Association at the time of his so ceasing to be a member.

54 10 7. LEVIES PAYABLE BY THE MEMBERS 7.1 The trustee committee shall from time to time, impose levies upon the members for the purpose of meeting all the expenses which the Association has incurred, or to which the trustee committee reasonably anticipates the Association will be put to by way of: maintenance, repair, improvement and keeping in order and condition of the common areas, including landscaping, sewerage treatment and township services; and/or payment of all rates, refuse collection and other charges payable by the Association in respect of the common areas and/or for the services rendered to it; payment of all expenses necessary or reasonably incurred in connection with the management of the Association, the common areas and the Association's affairs. In calculating levies, the trustee committee shall take into account, income, if any, earned by the Association. 7.2 The trustee committee shall estimate the amount which shall be required by the Association to meet the expenses during each year, together with such estimated deficiency (if any) as shall result from the preceding year, and shall impose a levy upon the members equal as nearly as is reasonably practical to such estimated amount. The trustee committee may include in such levies an amount to be held in reserve to meet anticipated future expenditure not of an annual nature. Every such levy shall be made payable by equal monthly installments due in advance on the first day of each and every succeeding month of such year. 7.3 The trustee committee may from time to time impose special levies upon the members in respect of all such expenses as are mentioned in clause 7.1 (which are not included in any estimate made in terms of clause 7.2), and such levies may be made in the sum or by such installments and at such time or times as the trustee committee shall think fit. 7.4 Any amount due by a member by way of a levy shall be a debt due by such member to the Association. The obligation of a member to pay a levy shall cease upon such member ceasing to be a member of the Association, without prejudice to the Association's right to recover arrear levies. No levies paid by a member shall under any circumstances be repayable by the Association upon his or her ceasing to be a member. A member's successor in title to a single residential erf, sectional title unit or

55 11 occupation right (as the case may be) shall be liable as from the first day of the month following the date upon which he or she becomes a member pursuant to the transfer thereof, to pay the levy attributable thereto. 7.5 The monthly levy payable by the members on the first day of any month in terms of clause 7.2 above shall be payable and apportioned at the first day of any month shall pay the same levy. 7.6 Upon any member ("the selling member") selling his or her erf or occupational right (as the case may be), the selling member shall pay to the Association an amount equal to 0,25% of the purchase price (exclusive of VAT, if any) at which the selling member sold his or her erf or occupational right (as the case may be), or such other portion of the purchase price as may be resolved by the members from time to time by special resolution. 7.7 The amount payable by the selling member in terms of clause 7.6 shall become due and payable upon registration of transfer or cession (as the case may be) of the selling member's erf or occupational right into the name of the transferee concerned. 7.8 A member shall make payment of the monthly levies by virtue of a debit order drawn on the member's banker. 7.9 The developer shall not be liable for the payment of levies in respect of any unsold erven on the land or in respect of any unsold erven arising from the subdivision of the properties referred to in clause 41.1 below The trustee committee shall at all times ensure that the maintenance and control of the common areas and the expenditure incurred in respect thereof is carried out in a manner which is fair and equitable to all the members of the Association No member shall be entitled to any of the privileges of membership including voting at any meeting unless and until he shall have paid every subscription and other sum (if any) which shall be due and payable to the Association in respect of his membership thereof. 8. DESIGN GUIDELINES 8.1 All buildings and other structures within the development be subject to and comply with the provisions of the Fernkloof Estate design guidelines provided that in the case of precincts 3 and 4, the buildings and other structures in those precincts will be in accordance with the guidelines prescribed by the Council which

56 12 may or may not be entirely in accordance with the provisions of the Fernkloof Estate design guidelines. 8.2 Subject to the restrictions imposed or directions given at a general meeting of the Fernkloof Estate Master POA and subject to the prior written approval by the Council, the trustee committee of the Fernkloof Master POA may from time to time amend, amplify, substitute or add to the provisions of the Fernkloof Estate design guidelines. Any such amendment, amplification, substitution or addition shall be subject to a resolution passed by the trustees holding not less than 75% of the total voting rights of the trustees of the Fernkloof Master POA. 8.3 In the event of any of the provisions of the design guidelines being amended, amplified, substituted or added to, and such amendment, amplification, substitution or addition, in the opinion of the trustee committee, materially affects any further development within the development (or any part thereof), the trustee committee of the Fernkloof Estate Master POA shall give written notice of such amendment, amplification, substitution or addition to, inter alia, the Association. Upon receipt of such written notification, the Association shall by written notice inform the members of such amendment, amplification, substitution or addition. 9. DEPOSIT FOR DAMAGE 9.1 Each member shall, when submitting to the trustees of the Association for approval the detailed plans for the construction of any building and/or improvements, or alterations or additions to existing improvements in the development in terms of clause above, pay to the trustees a deposit in an amount to be determined from time to time by the trustees which amount shall be retained by the trustees in trust until completion by the member and/or its contractors of such work, the interest on which deposit shall accrue to the association. 9.2 Upon completion of all such building and other activities, the trustees of the Association shall if they are satisfied that no damage has been effected by the member or any of its contractors to the common areas and/or landscaped areas within the development and that the work has been constructed in accordance with duly approved plans, release the building deposit to the member, excluding any interest thereon which will accrue to the Association less any fines or penalties payable in terms of the contractors agreement.

57 In the event of any landscaped area and/or the common areas having damage due to such work, the member shall within 15 days of having been requested to do so in writing by the trustees, rectify the damage to the satisfaction of the trustees, failing which, the trustees shall be entitled to appoint an independent contractor or contractors to repair the damage and the amount paid to the trustees as a building deposit shall be utilised to pay all costs of such repair. If the amount paid to the trustees of the Association as a building deposit is not sufficient to cover the cost of such repairs, the trustees shall be entitled to recover the shortfall from the member. 10. ERECTION OF DWELLING 10.1 Any member who fails to complete the dwelling as per the approved plans on such member's erf: within 3 years after the date of registration of the first transfer of such erf from the Council to the first transferee; and/or within 1 year after the commencement of the works in respect of or incidental to the erection of the dwelling; such member shall pay in respect of each month of delay of completion of the dwelling, a monthly penalty levy to the Association in an amount of the current monthly levy multiplied by The penalty levy shall be paid in addition to the levy payable by the member in terms of clause 7, and in the event of a dispute arising as to whether a dwelling is completed for purposes of the provisions of this clause, the chairperson shall determine such dispute and his or her decision shall be final and binding The trustees shall be entitled to: perform such acts as are necessary to accomplish the purposes expressed or implied herein, which acts shall include, inter alia, the examination and endorsement of the relevant building plans as are necessary for any construction, renovation and/or alterations within the scheme; appoint such advisors as are necessary to scrutinize the relevant plans referred to herein; impose a scrutiny fee on members for the services as mentioned herein.

58 The provisions of this clause shall not be applicable in relation to any of the works to be undertaken by the developer prior to the completion of the scheme. 11. DEALING WITH THE COMMON AREAS Neither the whole nor any portion of the common areas shall be: 11.1 sold, let, alienated, otherwise disposed of, subdivided or transferred; or 11.2 mortgaged; or 11.3 subjected to any rights, whether registered in a deeds registry or not, of use, occupation or servitude, (save those enjoyed by the members in terms hereof and any servitudes in favour of the Council as required in terms of any condition of subdivision); without the specific prior written consent of the Council and the sanction of a special resolution of the Association (and no member shall be entitled to unreasonably vote against any such special resolution which may be proposed); or 11.4 built upon, improved or enhanced in value by the construction of buildings, erections, facilities or amenities, without the sanction of a special resolution of the Association, save and except for the construction of the gatehouse, any storeroom/s, and/or any construction relating to the electrical substation or transformer, the construction of the private road and the landscaping of the private open spaces. 12. RESPONSIBILITY FOR THE COMMON AREAS 12.1 The Association shall take title to the common areas in each phase simultaneously with the first separate registration of an erf in such phase The Association acknowledges that the Council shall not be responsible for, and the Association shall be solely responsible for the care, repair, maintenance, cleaning, upkeep, improvement and property control of the common areas, all services therein and any structure or thing erected on or contained therein, including the private road and parking thereon. 13. VERGES AND CARRIAGE CROSSINGS The registered owner/s of each erf shall at such owner's cost contract and maintain:

59 the carriage crossing between his or her erf and the road; 13.2 the landscaping, grass, plants and flowers on the verge between such owner's erf and the road and/or any other adjacent common area/s; and shall at all times keep the carriage crossing and the verge in a clean, neat and tidy condition. 14. ENCROACHMENTS 14.1 It is recorded that the erven which are situated on the outer perimeter of the development and on the outer perimeter of any further development/s which might take place on the properties referred to in clause 41.1 shall be subject to the following encroachments in favour of the Association: the erection of outer perimeter walls/fences within the boundary of the erven; the installation of security communication ducts on the outer perimeter walls/fences and the installation of manholes The Association shall have the right of access to the erven referred to in clause 14.1 for the purpose of the installation, upkeep, repair and maintenance of the encroachments referred to in clause and above. 15. ESTATE RULES 15.1 The trustees and/or the developer may from time to time, but shall not be obliged to do so, make rules relating to the management of the development, all of which rules shall be binding on the members The trustees are empowered to amend, amplify, substitute or repeal any such rule (inter alia the rules relating to the design guidelines and the contractors agreement) with the approval of not less than three fourths of the trustees. In the absence of such approval, any trustee shall be entitled to call a general meeting where the proposed change to such rules shall be voted upon in terms of clause 31 below. 16. SIGNAGE No member other than the developer shall be entitled at any time(s) to erect any signage, flagpole, message and/or other form of notices or

60 16 advertising within the development (whether on such member's erf or at any other place): 16.1 during the development period, without the prior written consent of the developer which may withhold its consent for any reason; and thereafter 16.2 without the prior written consent of the Association. 17. MANAGING AGENT 17.1 The trustees shall appoint a managing agent from time to time to control, manage and administer the common property and to exercise such powers and duties as may be entrusted to the managing agent, including the power to collect levies and to appoint a supervisor The developer shall be entitled to appoint the managing agent for the development period or for a period of 3 years after the establishment of the association, whichever period is the longest, which appointment shall be valid and binding on the Association The Association hereby irrevocably appoints the development facilitator in rem suam with power of substitution to be his or her lawful attorney and agent, to appoint on his or her behalf a managing agent for the development, and to sign all such documents and do all such other things as may be necessary or desirable to give effect to any steps taken by the development facilitator in pursuance of the rights and powers which it may have as agent in terms of this clause 17.3 or at common law. 18. RULES AND CONTRACTS 18.1 Subject to any restrictions imposed or directions given at a general meeting of the Association and subject to the conditions imposed by the Council in approving the rezoning and subdivision of the land, the trustee committee may (but shall not be obliged to) from time to time: make rules but governing, inter alia: the management of the development; the member's rights of use, occupation and enjoyment of the common areas; the external appearance of and the maintenance of the common areas and the

61 17 buildings or other improvements erected thereon; the erection of any buildings and/or structures of any nature whatsoever, and the alteration, modification and renovation to such buildings and/or structures on the common areas; enter into agreement(s) with the local authorities governing the matters set out in clause and any other incidental matters In the event of a conflict between any rule made in terms of clause and any the provisions of the constitution of the Fernkloof Master POA (including any rules and guidelines made hereunder), the provisions of the constitution of the Fernkloof Master POA (including any rules and guidelines made hereunder) shall prevail Each member undertakes to the Association that such member will comply with: the provisions of this constitution; the design guidelines referred to in clause 8 above; any rules made in terms of clause above; any agreement(s) referred to in clause insofar as those agreements may directly or indirectly impose obligations on such member; the provisions of the constitution of the Fernkloof Master POA (including any rules and guidelines made hereunder); rules made by the Hermanus golf club from time to time in respect of the access to the golf course Each member shall comply with, and shall procure compliance by any person occupying the property of that owner, with rules made from time to time by the Hermanus Golf Club or its successor/s to protect the interests of the members of the Club and to provide a harmonious lifestyle of high quality to the residents of the development, including (but not limited to) rules relating to the following: the admission of homeowners in the development as members of the Club;

62 the usage of the golf course and access thereto; the use of golf carts and other vehicles; guests or invitees of the property owners shall abide by all the rules and regulations of the Hermanus Golf Club and the property owners have a duty to acquaint themselves with these rules and regulations; the environment including restrictions in regard to noxious or alien vegetation; animals and pets, including the access of animals or pets on the golf course; the prevention of noise or any other form of nuisance, including music and other sounds from properties No guesthouse, bed and breakfast establishment or similar business shall be conducted on or from any erf without the prior written consent of the trustees In the event of any breach by person of the household of, or guest or lessee of a member, such breach shall be deemed to have been committed by the member itself, but without prejudice to the aforegoing, the trustee committee may take or cause to be taken such steps against the person actually committing the breach, as the trustee committee may in its sole discretion deem fit All officials, employees and contractors employed by the Association, local authority, any public service company, the developer and/or development facilitator shall, at all times, have reasonable access to the erven and common areas for purposes of inspecting and/or maintaining all services supplying and/or traversing any part thereof. 19. BREACH 19.1 Should any member: fail to pay on due date any amount due by that member in terms of this constitution or any regulation made thereunder and remain in default for more than 7 days after being notified in writing to do so by the trustees; or commit any other breach of any of the provisions of this constitution or any regulation made thereunder and fail to commence remedying that breach within a period of 7

63 19 days after the receipt of written notice to that effect by the trustees and complete the remedying of such breach within a reasonable time; then and in either such event, the trustees shall be entitled on behalf of the Association, without prejudice to any other rights or remedies which the trustees or the Association or any other member may have in law, including the right to claim damages: to institute legal proceedings on behalf of the Association against such member for payment of such overdue amount or for performance of that member's obligations in terms of this constitution or any regulation made thereunder, as the case may be; or to suspend all or any services to the erf owned by that member; and/or in the case of clause above, to remedy such breach and immediately recover the total cost incurred by the trustees or the Association in so doing from such member Should the trustees institute any legal proceedings against any member pursuant to a breach by that member of this constitution or any regulation made thereunder, then without prejudice to any other rights which the trustees or the Association or any other member may have in law, the trustees shall be entitled to recover from such member all legal costs incurred by the trustees or the Association, including attorney/client charges, tracing fees and collection commission Without prejudice to all or any of the rights the trustees or the Association granted under this constitution, should any member fail to pay any amount due by that member on due date, then such member shall pay interest thereon at the publicly quoted prime rate plus 4% calculated from the due date for payment until the actual date of payment of such amount. 20. TRUSTEE COMMITTEE 20.1 There shall be a board of trustees of the Association which shall consist of not less than 3 and not more than 7 members Every trustee must be a member or the spouse of a member of the Association or an authorised representative of the member where the member is not a natural person.

64 The trustees of the Association shall for the development period be divided into two classes, namely developer trustees and member trustees. Upon expiry of the development period there shall only be member trustees During the development period, the majority of the trustees may be appointed by the developer and the remainder of the trustees shall be appointed by the members provided that after the development period, all trustees shall be appointed by the members Until the first trustees of the Association are appointed, the developer shall be entitled to carry out all the functions and duties of the trustees in terms of this constitution. 21. REMOVAL AND ROTATION OF TRUSTEE MEMBERS 21.1 Save as set forth in clause 20.3 above, each trustee, except for the developer trustees who shall not be required to rotate on an annual basis, shall continue to hold office until the annual general meeting next following his said appointment, at which meeting each trustee shall be deemed to have retired from office as such, and shall be eligible for re-election to the trustee committee at such meeting A trustee shall be deemed to have vacated his or her office as such upon: his or her estate being sequestrated, whether provisionally or finally, or surrendering his or her estate; his or her making any arrangement or compromise with his or her creditors; his or her conviction for any office involving dishonesty; his or her becoming of unsound mind or being found lunatic; his or her resigning from such office in writing delivered to the secretary; his or her death; his or her being removed from office by a special resolution of the members, provided that anything done in the capacity of a trustee in good faith, by a person who ceases to be a trustee, shall be valid until

65 21 the fact that he or she is no longer a trustee has been recorded in the minute book of the trustee committee Upon any vacancy occurring on the trustee committee prior to the next annual general meeting, the vacancy in question shall be filled by a person nominated by those remaining for the time being of the trustee committee. Whilst developer trustees are in office the remaining developer trustees shall nominate a person to fill any such vacancy in their number The developer may at any time and from time to time remove and replace any developer trustee at any time on written notice to the remaining trustees. 22. OFFICE OF TRUSTEES 22.1 The trustees shall appoint from amongst themselves, a chairperson and vice-chairperson The first chairperson and the first vice-chairperson may be appointed by the developer, and such office bearers shall hold their respective offices until the first annual general meeting following the date of their appointment, provided that any such office shall ipso facto be vacated by the trustee holding such office upon his or her ceasing to be a trustee for any reason Within 14 days of the holding of such annual general meeting, the trustee committee shall meet and shall elect from its own number the chairperson and vice-chairperson, who shall hold their respective offices until the annual general meeting held next after their said appointment, provided that the office of the chairperson or vice-chairperson shall ipso facto be vacated by the trustee holding such office upon his or her ceasing to be a trustee for any reason. No one trustee shall be appointed to more than one of the aforesaid offices. In the event of any vacancy occurring in any of the aforesaid offices at any time, the trustee committee shall meet to appoint one of their number as a replacement in such office Save as otherwise provided in this constitution, the chairperson shall preside at all meetings of the trustee committee, and all general meetings of members, and shall perform all duties incidental to the office of chairperson and such other duties as may be prescribed by the trustee committee or of members, and to allow or refuse to permit invitees to speak at any such meetings, provided however, that any such invitees shall not be entitled to vote at any such meetings.

66 The vice-chairperson shall assume the powers and duties of the chairperson in the absence of the chairperson, or his inability or refusal to act as chairperson, and shall perform such other duties as may from time to time be assigned to him by the chairperson or the trustee committee Trustees shall be entitled to be repaid all reasonable and bona fide expenses incurred by them respectively in or about the performance of their duties as trustees and/or chairperson, vicechairperson, as the case may be, but save as aforesaid, shall not be entitled to any other remuneration fees or salary in respect of the performance of such duties. 23. FUNCTIONS AND POWERS OF THE TRUSTEE COMMITTEE 23.1 Subject to the express provisions of this constitution, the trustee committee shall manage and control the business and affairs of the Association, and shall have full powers in the management and direction of such business and affairs and, save as may be expressly provided in this constitution, may exercise all such powers of the Association, and do all such acts on behalf of the Association as may be exercised and done by the Association, and as are not by this constitution required to be exercised or done by the Association in general meeting, subject nevertheless to such regulations as may be prescribed by the Association in general meeting from time to time, provided that no regulation made by the Association in general meeting shall invalidate any prior act of the trustee committee which would have been valid if such regulation had not been made The trustee committee shall have the right to vary, cancel or modify any of its decisions and resolutions from time to time The trustee committee shall have the right to co-opt onto the trustee committee any member or members chosen by it. A coopted trustee shall enjoy all the rights and be subject to all the obligations of the trustees The trustee committee may, should it so decide, investigate any suspected or alleged breach by any member or trustee of this constitution, in such reasonable manner as it shall decide from time to time The trustee committee may make regulations and by-laws, not inconsistent with this constitution, or any regulations or by-laws prescribed in the Association in general meeting: as to disputes generally;

67 for the furtherance and promotion of any of the objects of the Association; for the better management of the affairs of the Association; for the advancement of the interests of members; for the conduct of trustee committee meetings and general meetings; and to assist it in administering and governing its activities generally; and shall be entitled to cancel, vary or modify any of the same from time to time. 24. PROCEEDINGS OF THE TRUSTEE COMMITTEE 24.1 The trustee committee may meet together for the dispatch of business, adjourn and otherwise regulate their meetings as they think fit, subject to any provisions of this constitution Meetings of the trustee committee shall be held at least once every 12 months, provided that if all the trustees shall in writing have waived the above requirement in respect of a particular 12 months, then no meeting of the trustee committee need be held for that period The quorum necessary for the holding of any meeting of the trustee committee shall be 3 trustees, provided that during the development period at least 2 developer trustees shall be necessary at all meetings of trustees to form a quorum The chairperson shall preside as such at all meetings of the trustee committee, provided that should at any meeting of the trustee committee the chairperson not be present within 5 minutes after the time appointed for the holding thereof, then the vicechairperson shall act as chairperson at such meeting, provided further that should the vice-chairperson also not be present within 5 minutes of the time appointed for the holding of such meeting, those present of the trustees shall vote to appoint a chairperson for the meeting, who shall thereupon exercise all the powers and duties of the chairperson in relation to such meeting Minutes shall be taken at every trustee committee meeting, although not necessarily verbatim. These minutes shall be reduced to writing without undue delay after the meeting and shall then be certified correct by the chairperson of the meeting.

68 24 All minutes of trustee committee meetings shall after certification as aforesaid be placed in a trustee committee minute book to be kept in accordance, mutatis mutandis, with the provisions of the law relating to the keeping of minutes of meetings of directors of companies. The trustee committee minute book shall be open for inspection at all reasonable times by a trustee, the auditors, and the members All competent resolutions recorded in the minutes of any trustee committee meeting shall be valid and of full force and effect as therein recorded, with effect from the passing of such resolutions, and until varied or rescinded, but no resolution or purported resolution of the trustee committee shall be of any force or effect, or shall be binding upon the members or any of the trustees unless such resolution is competent within the powers of the trustee committee Save as otherwise provided in this constitution, the proceedings at any trustee meeting shall be conducted in such reasonable manner and form as the chairperson of the meeting shall decide A resolution signed by all the trustees shall be valid in all respects as if it had been duly passed at a meeting of the trustee committee duly convened. 25. GENERAL MEETINGS OF THE ASSOCIATION 25.1 The Association shall within 3 calendar months after each financial year of the Association, hold a general meeting as its annual general meeting, in addition to any other general meetings, during such financial year, and shall specify the meeting as such in the notices in terms of clause 26.1 below Such annual general meeting shall be held at such time and place, subject to the aforegoing provisions, as the trustee committee shall decide from time to time All general meetings other than annual general meetings shall be called special general meetings The trustee committee may, whenever they think fit, convene a special general meeting General meetings of the Association shall take place at such place/s as shall be determined by the trustee committee from time to time.

69 NOTICE OF MEETINGS OF THE ASSOCIATION 26.1 An annual general meeting and a meeting called for the passing of a special resolution, shall be called by not less than 21 days' notice in writing at the least, and a special general meeting, other than one called for the passing of a special resolution, shall be called by not less than 14 days' notice in writing. In each case, the notice shall be inclusive of the day on which it is dispatched, and shall specify the place, the day and the hour of the meeting and, in the case of special business, in addition to any other requirements contained in this constitution, the general nature of that business, and in the case of a special resolution, the terms and effect of the resolution and the reasons for it shall be given in the manner hereinafter mentioned or in such other manner (if any) as may be prescribed by the trustee committee to such persons as are under this constitution entitled to receive such notices from the Association; provided that a general meeting of the Association shall, notwithstanding that it is called by shorter notice than that specified in this constitution, be deemed to have been duly called if it is so agreed: in the case of a meeting called as the annual general meeting, by all the members entitled to attend and vote thereat; and in the case of a special general meeting, by a majority in number of the members having a right to attend and vote at the meeting, being a majority together holding not less than 75% of the total voting rights of all members The accidental omission to give notice of a meeting or of any resolution, or to give any other notification, or present any document required to be given or sent in terms of this constitution, or the non-receipt of any such notice, notification or document by any member or other person entitled to receive the same, shall not invalidate the proceedings at, or any resolution passed at, any meeting. 27. QUORUM FOR GENERAL MEETINGS 27.1 No business shall be transacted at any general meeting unless a quorum is present when the meeting proceeds to business. The quorum necessary for the holding of any general meeting shall be such of the members entitled to vote in person or by proxy, as together for the time being, represent 50% of the total votes of all members of the Association entitled to vote, for the time being save that not less than 3 members must be personally present and

70 26 provided further that during the development period, the developer is represented at such meeting If within half an hour from the time appointed for the holding of a general meeting a quorum is not present, the meeting shall proceed and the members present shall be a quorum. 28. AGENDA AT GENERAL MEETINGS In addition to any other matters required by this constitution to be dealt with at an annual general meeting, the following matters shall be dealt with at every annual general meeting: 28.1 the consideration of the chairperson's report; 28.2 the election of the trustee committee; 28.3 the consideration of any other matters raised at the meeting including any resolutions proposed for adoption by such meeting, and the voting upon any such resolutions; 28.4 the consideration of the balance sheet of the Association for the last financial year of the Association preceding the date of such meeting; 28.5 the consideration of the report of the auditors; 28.6 the consideration of the total levy (as referred to in clause 7) for the calendar year during which such annual general meeting takes place; and 28.7 the consideration and fixing of the remuneration of the auditors for the financial year of the Association preceding the annual general meeting. 29. PROCEDURE AT GENERAL MEETINGS 29.1 The chairperson shall preside as such at all general meetings, provided that should he or she not be present within 5 minutes after the time appointed for the holding thereof, then the vicechairperson shall act as chairperson at such meeting, provided further that should the vice-chairperson also not be present within 5 minutes of the time appointed for the holding of such meeting, then the members present at such meeting entitled to vote, shall vote to appoint a chairperson for the meeting, who shall thereupon exercise all the powers and duties of the chairperson in relation to such meeting.

71 The chairperson may, with the consent of any general meeting at which a quorum is present (and if so directed by the meeting), adjourn a meeting from time to time and from place to place, but no business shall be transacted at any adjourned meeting other than the business which might have been transacted at the meeting from which the adjournment took place Whenever a meeting is adjourned for 10 days or more, notice of the adjourned meeting shall be given in the same manner as of an original meeting. Save as aforesaid, the members shall not be entitled to any notice of adjournment, or of the business to be transacted at an adjourned meeting Except as otherwise provided for in this constitution, all general meetings shall be conducted in accordance with generally accepted practice. 30. PROXIES FOR GENERAL MEETINGS 30.1 A member may be represented at a general meeting by a proxy, who need not be a member of the Association. The instrument appointing a proxy shall be in writing signed by the member concerned or such member's duly authorised agent in writing, but need not be in any particular form, provided that where a member is more than one person, any one of those persons may sign the instrument appointing a proxy on such member's behalf, where a member is a company, the same may be signed by the chairperson of the board of directors of the company or by its secretary, and where an Association of persons, by the secretary thereof The instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed, or a copy certified by a commissioner of oaths thereof shall be deposited at the office at any time before the time appointed for the commencement of the meeting, or adjourned meeting, at which the person named in the instrument is proposed to vote. No instrument appointing a proxy shall be valid after the expiration of 12 months from the date of its execution A vote given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous death of the principal or revocation of the proxy, provided that no intimation in writing of the death or revocation shall have been received by the trustee committee at least one hour before the time fixed for the holding of the meeting.

72 Should a member be absent from the recorded domicilium address which the trustees may have for such member, for a continuous period in excess of 3 weeks, a proxy must be appointed by such member prior to such member's absence in accordance with clauses 30.1 and 30.2 above, failing which a member shall not be entitled to vote, at any special general meeting, called during such member's absence. 31. VOTING AT GENERAL MEETINGS 31.1 At every general meeting, every member in person or by proxy and entitled to vote shall have 1 (one) vote per erf owned by such member provided that if a single residential erf, sectional title unit or occupation right is registered in the name of more than one person, then they shall jointly exercise such rights in respect thereof Save as expressly provided for in this constitution, no person other than a member duly registered, and who shall have paid every levy and other amount (if any) which shall be due and payable to the Association in respect of or arising out of his membership, and who is not under suspension, shall be entitled to be present or to vote on any question, either personally or by proxy, at any general meeting During the development period, the developer shall be entitled on a poll to the same number of votes of all the other members of the Association, in addition to the number of votes to which the developer is entitled as a member in terms of this constitution At any general meeting a resolution put to the vote of the meeting shall be decided on a show of hands, unless either prior to or on the declaration by the chairperson of the result of the show of hands, a poll is demanded by: any person entitled to vote at such meeting; and/or by the chairperson Notwithstanding the provisions of clause 31.4 above, voting on the election of a chairperson of a general meeting (if necessary) or on any question of adjournment shall be decided on a show of hands by a majority of the members present in person or by proxy, and entitled to vote, unless a poll is (before or on the declaration of the result of the show of hands) demanded by the chairperson or any of the members in terms of clause 31.6 below.

73 When a poll is demanded regard shall be had, in computing the majority on the poll, to the number of votes cast for and against the resolution An ordinary resolution (that is a resolution other than a special resolution) or the amendment of an ordinary resolution, shall be carried on a simple majority of all the votes cast thereon, and an abstention shall not be counted as a vote for or against the resolution in question. In the case of an equality of votes, whether on a show of hands or on a poll, the chairperson of the general meeting shall be entitled to a casting vote in addition to his deliberative vote Unless any member present in person or by proxy at a general meeting shall have objected to any declaration made by the chairperson of the meeting as to the result of any voting at the meeting, whether by show of hands or by poll, or to the propriety of validity of the procedure at such meeting, such declaration shall be deemed to be a true and correct statement of the voting, and the meeting shall in all respects be deemed to have been properly and validly constituted and conducted, and an entry in the minutes to the effect that any motion has been carried or lost, with or without a record of the number of votes recorded in favour of or against such motion, shall be conclusive evidence of the vote so recorded if such entry conforms with the declaration made by the chairperson of the meeting as to the result of any voting at the meeting. The chairperson of the meeting shall be obliged to announce the result of any voting either at the meeting or as soon as reasonably possible thereof. 32. SPECIAL RESOLUTION 32.1 A resolution by the Association shall be a special resolution if at a general meeting of which not less than 21 days' notice has been given specifying the intention to propose the resolution as a special resolution, the terms and effect of the resolution and the reasons for it and at which members holding in aggregate not less than one-fourth of the total votes of all the members entitled to vote thereat, are present in person or by proxy, the resolution has been passed, on a show of hands, by not less than three-fourths of the number of members of the Association entitled to vote on a show of hands at the meeting who are present in person or by proxy or, where a poll has been demanded, by not less than three-fourths of the total votes to which the members present in person or by proxy are entitled If less than one-fourth of the total votes of all the members entitled to attend the meeting and to vote thereat are present or

74 30 represented at a meeting called for the purpose of passing a special resolution, the meeting shall stand adjourned for 30 minutes After the expiry of the said 30 minute period, the members who are present in person or by proxy and are entitled to vote may deal with the business for which the original meeting was convened and a resolution passed by not less than three-fourths of such members shall be deemed to be a special resolution even if less than one-fourth of the total votes are represented at such meeting. 33. OTHER PROFESSIONAL OFFICERS Save as specifically provided otherwise in this constitution, the trustee committee shall at all times have the rights to engage on behalf of the Association, the services of accountants, auditors, attorneys, advocates, architects, engineers, any other professional person or firm and/or any other employee/s whatsoever, for any reasons thought necessary by the trustee committee and on such terms as the trustee committee shall decide, subject to any of the provisions of this constitution, provided that any expenditure incurred in respect of the above, shall not exceed 5% of the total annual levy for the year in question unless authorised by a special resolution. 34. ACCOUNTS 34.1 The Association in general meeting or the trustee committee, may from time to time make reasonable conditions and regulations as to the time and manner of the inspection by the members of the accounts and books of the Association, or any of them, and subject to such conditions and regulations, the accounts and books of the Association shall be open to the inspection of members at all reasonable times during normal business hours At each annual general meeting the trustee committee shall lay before the Association a proper income and expenditure account for the immediately preceding financial year of the Association, or in the case of the first account, for the period since the incorporation of the Association, together with a proper balance sheet made up as at the last financial year end of the Association. Every such balance sheet shall be accompanied by proper and extensive reports of the trustee committee and the auditors if appointed, and there shall be attached to the notice sent to members convening each annual general meeting, as set forth in clause 26.1 above, copies of such accounts, balance

75 31 sheet and reports and of any other documents required by law to accompany the same Should the trustees or the majority of the members so require, the accounts of the Association shall be examined and the correctness of the income and expenditure account and balance sheets ascertained by the auditors at least once a year. 35. SERVICE OF NOTICES 35.1 A notice shall be in writing and shall be given or served by the Association upon any member, either personally or by post in a prepaid registered letter, properly addressed to the member at the address of the erf owned by such member No member shall be entitled to have a notice served on him or her at any address not within the Republic of South Africa, but any member may require the Association, by notice, to record an address within the Republic of South Africa which shall be deemed to be his address for the purpose of the service of notices Any notice by post shall be deemed to have been served at the time when the letter containing the same was posted, and in proving the giving of the notice by post, shall be sufficient to prove that the letter containing the notice was properly addressed and posted The accidental omission to give notice of a meeting to, or the non-receipt of notice of a meeting by, any person entitled to receive notice shall not invalidate the proceedings of that meeting. 36. INDEMNITY 36.1 All trustee members shall be indemnified out of the funds of the Association against any liabilities bona fide incurred by them in their respective said capacities and in the case of a trustee member, in his capacity as chairperson or vice-chairperson, whether defending any proceedings, civil, criminal or otherwise, in which relief is granted to any such person/s by the court Every trustee member, every servant, agent and employee of the Association, shall be indemnified by the Association against (and it shall be the duty of the trustee committee out of the funds of the Association to pay) all costs, losses and expenses (including travelling expenses) which such person or persons may incur or become liable for by reason of any contract entered into, or any

76 32 act or deed done, by such person or persons in the discharge of any of his/their respective duties, including in the case of a trustee member, his duties as chairperson or vice-chairperson. Without prejudice to the generality of the above, the Association shall specifically indemnify every such person against all losses of whatsoever nature incurred arising out of any bona fide act, deed or letter done or written by him jointly or severally in connection with the discharge of his duties, provided that any such act, deed or letter has been done or written in good faith A trustee member shall not be liable for the acts, receipts, neglects or defaults of the auditors or of any of the other trustee members, whether in their capacities as trustee members or as chairperson or vice-chairperson, or for any loss or expense sustained or incurred by the Association through the insufficiency or deficiency of title to any property acquired by the trustee committee for or on behalf of the Association, or for the insufficiency or deficiency of any security in or upon which any of the monies of the Association shall be invested, or for any loss or damage arising from the insolvency or tortuous act of any person with whom any monies, securities or effects shall be deposited, or for any loss or damage occasioned by any error of judgment or oversight on his part, or for any other loss, damage or misfortune whatever which shall happen in the execution of any of the duties of his office/s or in relation thereto, unless the same shall happen through lack of bona fides or breach of duty or breach of trust No member shall have any claim of any nature whatsoever against the Association for any loss, damage or injury which such member may directly or indirectly suffer (even if such loss, damage or injury is caused through the negligence of the Association, the trustees, or any of the Associations employees or appointees) by reason of any latent or patent defects on the development (including the common areas), or fire on the development, or theft from the development, or by reason of any building, improvement or other structure within the development being in a defective condition or state of disrepair or any particular repair not being effected by the Association timeously or at all, by any person whatsoever, or for any purpose whatsoever, or arising from any other cause whatsoever, and each member is advised to take the necessary steps to insure his or her interest. 37. ARBITRATION 37.1 Any dispute, question or difference arising at any time between member or between members and trustees out of or in regard to:

77 any matters arising out of this constitution; or the rights and duties of any of the parties mentioned in this constitution; or the interpretation of this constitution, shall be submitted to and decided by arbitration on notice given by any party to the other parties who are interested in the matter in question Arbitration shall be held in Cape Town informally and otherwise upon the provisions of the Arbitration Act No 42 of 1965 (as amended or replaced from time to time) it being intended that if possible it shall be held and concluded within 21 business days after it has been demanded Save as otherwise specifically provided herein, the Arbitrator shall be, if the question in dispute is: primarily an accounting matter - an independent accountant; primarily a legal matter - a practising counsel or attorney of not less than 10 years standing; any other matter - an independent and suitably qualified person appointed by the auditors; as may be agreed upon between the parties to the dispute If agreement cannot be reached on whether the question in dispute falls under clauses , or or upon a particular arbitrator in terms of clause above, within 3 business days after the arbitration has been demanded, then: the President for the time being of the Law Society of the Cape of Good Hope or its successor/s shall determine whether the question in dispute falls under clauses , or above; or the President for the time being of the Law Society of the Cape of Good Hope shall nominate the arbitrator in terms of clause within 7 business days after the parties have failed to agree so that the arbitration can be held and concluded as soon as possible within the 21 business days referred to in clause 37.2 above The arbitrator shall make his award within 7 days after completion of the arbitration and shall in giving his award, have regard to the

78 34 principles laid down in terms of this constitution. The arbitrator may determine that the cost of the arbitration may be paid either by one or other of the disputing parties or by the Association as he in his sole discretion may deem fit The decision of the arbitrator shall be final and binding and may be made an order of the Cape Provincial Division of the High Court of South Africa or its successor/s upon the application of any party to the arbitration Notwithstanding anything to the contrary contained in clauses 37.1 to 37.7 (both inclusive), the trustees shall be entitled to institute legal proceedings on behalf of the Association by way of application, action or otherwise in any Court having jurisdiction for the purposes of restraining or interdicting breaches of any of these provisions. 38. AMENDMENTS TO CONSTITUTION This constitution, or any part thereof, shall not be repealed or amended, and no new rules shall be made, save by a special resolution adopted at an annual general meeting or a general meeting of the members and subject further to the prior written consent of the Council being obtained for the amendment of this clause 38 and clauses 1, 2, 3, 4, 6, 7, 8, 9, 11, 12, 40 and 41 of this constitution and subject further to the prior written consent of the developer during the development period being obtained for the amendment of this clause and clauses 40 and 41 of this constitution. 39. EFFECTIVE DATE This constitution shall come into force when the first erf in the development is registered in the deeds office. 40. STATUS OF DEVELOPER During the development period, the following provisions shall apply in addition to the provisions of and notwithstanding anything to the contrary contained in this constitution: 40.1 the developer shall be entitled: to nominate and appoint the majority of the trustees to the board of trustees; to a number of votes equal to the number of erven registered in its name at any time plus the number of

79 35 votes referred to in clause 31.3 at any meeting of members or the trustee committee; to impose any rules relating to the management of the development from time to time, as the developer may deem fit, and to amend, amplify, substitute and/or add to any such rules; to require that the trustee committee enforces the rights granted to it in terms of this constitution against any member who in the opinion of the developer is not complying with his obligations as a member, and in particular, without restricting the generality of the aforegoing, has failed to maintain all buildings and other improvements on its erf by giving such member written notice in which his failure to comply with the particular provisions of this constitution is detailed and calling upon him to remedy such failure within a prescribed period of not more than 30 days, failing which, the developer shall be entitled at the sole cost of that member to carry out all such work as may be required to maintain such building and other improvements on its erf; to erect such signage, flagpoles, messages and/or other forms of notices or advertising on the development including the common areas, the private road area and/or the exterior walls (if any) of the development, subject to the regulations and by-laws of the Council appertaining to signage from time to time; to change the name of the Association from time to time to any name which the developer may deem fit; 40.2 neither the trustee committee nor any member of the Association shall prevent or hinder in any way the developer from: gaining access to and egress from the development; continuing any building operations at the development; marketing and selling any of its unsold erven, including the advertisement of the sale of such erven on the common areas and/or at the development; provided that the provisions of this clause 40 shall not be interpreted as allowing the developer access onto any of the erven after the termination of the development period unless 48 hours prior written notice has been given to the member concerned. The developer shall make good any subsequent

80 36 damage to plants, property or improvements thereon to the satisfaction of the member. No member shall be entitled to refuse the developer access if the required notice has been given; 40.3 no consent shall be given by the board of trustees as contemplated in clause unless the developer trustees or their nominee/s have voted in favour of such consent granted; 40.4 upon the transfer of the last erf from the developer to a member, the rights of the developer in terms of the provisions of this clause 40 shall immediately terminate ipso facto and no longer be of any force and effect. 41. INCORPORATION OF FURTHER PHASES The developer has a continuing and permanent interest to ensure that certain basic provisions are entrenched in perpetuity to ensure the success of the development. Accordingly, none of the following provisions may be deleted or varied in any way in terms of clause 38 above, without the prior written consent of the developer: 41.1 the developer has the right at any time and from time to time to extend or alter the area or composition of the development by requiring the Association to incorporate into the development any additional areas from time to time as further phases of the development which the developer shall be entitled to develop as it may deem fit; 41.2 should any additional area or areas be incorporated into the development, the developer shall be entitled to require that the first and all subsequent owners of erven therein become owners of the Association in respect of those parts from such date as the developer may determine, and on the same terms and conditions as are applicable to the other members of the Association. The members shall be bound by any such requirement of the developer. oooooo

81 SUMMARY OF GUIDELINE APPROVAL 1. Plot / Erf Owner to appoint an Architect/Designer. 2. Owner to Pay/Transfer R to the bank account of Munnik Visser Architects for the Guideline Scrutiny Process. Account Name: Munnik Visser Architects (Pty) Ltd Bank Name: ABSA Heerengracht Account No: Branch Code: Fax proof of payment to Munnik Visser Architects - fax: Quote the ERF No, PRECINCT No, OWNERS NAME and ADDRESS. A VAT invoice will be sent back to the Owner as soon as the details are received. 4. Owners / Architect to forward 3 draft copies of the House design drawings (PDF format - max. 1mb) by to Munnik Visser Architects. address: fernkloof@munnikvisser.co.za 5. Munnik Visser Architects will scrutinize the drawings and prepare a list of revisions/queries that will be sent to the Owners Architect/Designer. 6. Drawings to be revised by the Owners architect and resent back to Munnik Visser Architects for scrutiny. 7. This process to continue until ALL items clarified. 8. Munnik Visser architects will inform the Owners or Architect to deliver/courier 5 uncoloured copies of the final drawings to the offices of: Munnik Visser Architects 6th Floor 66 long Street Central Cape Town 9. Once ALL the revisions are updated in accordance with the guidelines, the 5 Drawings will be stamped and signed off by Munnik Visser Architects. Note: Munnik Visser will keep 2 of these Approved drawings, 1 for their records and 1 for FERNKLOOF MASTER PROPERTY OWNERS ASSOCIATION.

82 10. The 3 remaining copies must then be collected by the Owner/Architect for submission to the local authority. 11. Owner/architect to submit the 3 approved coloured copies to OVERSTRAND MUNICIPALITY in Hermanus. 12. Issue one set of approved Overstrand drawings to Estate Manager. 13. Please refer to attached GUIDELINES FOR SUBMISSION PROCESS for more detail. 14. Contact Wayne Radermacher or Alan McIntyre of Munnik Visser Architects in Cape Town on , if any detail is unclear or alternate arrangements are to be made.

83 Guidelines for the Submission of Building Plans to the Master Property Owners Association Design Review Committee Submitting Building plans for Scrutiny by the Design Review Committee All improvements on your property shall be designed and constructed in accordance with the design guidelines (Refer to annexure C Architectural Design Guidelines detailed in the agreement of sale). Munnik Visser Architects have been appointed to ensure that proposed designs comply with the guidelines in terms of the requirements set out by the Fernkloof Estate Master Property Owners Association (MPOA) Design Review Committee (DRC). Please ensure that you make your appointed Architect/designer familiar with the Architectural Design Guidelines. For further clarity or advice contact Munnik Visser Architects on The Submission Process: The approval process forms two stages: Stage 1 Design Concept Drawings Design Concept drawings are to be submitted electronically to the DRC for initial scrutiny and commentary. Drawings must be submitted via in '.pdf' format and a return address for the DRC's commentary is required. s must include a 'read receipt' so as to avoid any confusion as to whether drawings have been received or not. All s to: fernkloof@munnikvisser.co.za

84 After commentary has been delivered on the initial submission, whatever revisions have been advised must be made and the revised design concept drawings must be submitted (again in '.pdf' format) to the address given above for a second appraisal. It is possible that more appraisals will be required should the drawings again fail to meet the criteria laid out in the Architectural Design Guidelines. Note: '.PDF' files are to be no bigger than 1mb. Each sheet should be an individual file with the file name corresponding to the drawing number on the sheet. Files must be printable at a recognized scale and should conform to ISO A (Example A1, A2, etc.) page sizes. The following drawings are required for appraisal at the Design Concept Stage: Site/ Roof plan at 1:200 scale clearly indicating boundary line dimensions, building setback dimensions (reference section 3.1 of the Architectural Design Guidelines) and the surrounding conditions, i.e. Roads, neighbouring erven, Open spaces & the Golf course. Floor Plans at 1:100 scale Elevations at 1:100 scale Typical sections at 1:100 scale clearly indicating the dimensions of internal heights, Height to the underside of wallplates & to roof apex as well as the various widths of primary and secondary forms (Reference section 3.3 of the Architectural Design Guidelines) All necessary Bulk and coverage calculations as explained in section of the Architectural Design Guidelines Plans must have a North Point All drawings must have a block referencing the property Erf Number, Precinct number, submission date as well as spaces for the approval date & signatures from both the DRC and the MPOA (as stipulated in section 7 of the Architectural Design guidelines) Stage 2 Local Authority Standard Submission When the DRC is satisfied that the design complies with the estate guidelines, five hard copy sets, drawn to Local Authority Submission standard, are to be submitted for final approval. Of the five sets, three will be returned to the owner or the Architect/designer for submission to the Local Authorities (Overstrand Municipality). It is therefore important that the drawings should comply not only to the rules laid out by the Architectural Design Guidelines, but also with the requirements of the Overstrand Municipality. The DRC and the MPOA will retain the additional two sets of drawings for their respective records.

85 These drawings must be submitted to: Munnik Visser Architects 6 th Floor 66 Long Street CAPE TOWN 8001 The following drawings are required for the final Scrutiny and approval at the Local Authority 'Standard' stage: Site/Roof Plan at 1:200 scale as per stage 1 submission Floor Plans at 1:100 scale. Ground floor plan to include boundary wall specifications Bulk Earthworks Plan at 1:100 scale including specification of all retaining structures Landscaping Plan at 1:100 scale Elevations at 1:100 scale Typical Sections at 1:100 scale. In addition to the information required in the stage 1 submission sections should be developed to the level required for submission to the local authority. Drainage plan & Section Door & Window Schedules External Finishes and Colour schedule Final Bulk & Coverage Calculations as explained in section of the Architectural Design Guidelines As in stage 1 all drawings must again have a block referencing the Erf number, Precinct Number Submission Date & allow space for the Approval date and signatures from the DRC and the MPOA as is laid out in section 7 of the Architectural Design Guidelines document. Ensure that all required information and documentation is provided in accordance with section 7 of the Architectural Design Guidelines. Should the required information not be provided, potential delays to the approval process may be experienced.

86 Scrutiny Fee Payment A single scrutiny fee of R (incl. VAT) is to be paid to Munnik Visser Architects upon initial submission of Design Concept Drawings. The amount includes the facilitation of the approval from the Fernkloof Estate MPOA. Neither Munnik Visser nor the MPOA will undertake to submit the drawings to the Local Authority on behalf of the Property Owner or his/her appointed Architect/designer. Payment is to be made to the following bank account: Account Name: Munnik Visser Architects (Pty) Ltd Bank Name: ABSA Heerengracht Account No.: Branch Code: Note: Quote your Erf & Precinct number as reference. Proof of payment with name & address is to be sent to Munnik Visser Architects via fax. The Fax number is: A VAT invoice will be issued as soon as the details are received. Approval of the following documentation to the HOA (submitted to Estate Manager located at Gatehouse 6) Proof of NHBRC registration Environmental plan (layout of site showing hauding, toilet location, site office and storage areas) 3 references of the builder Contact number of owner and builder Ensure that Fernkloof MPOA have signed the contractor s agreement as the case may be. Contractors Boards The HOA will only permit signage in a specified format. These signs can be purchased from the following suppliers in Hermanus Orange Promotions and Signs Phone Wildside promotions Phone The above suppliers have a standard template.

87 Connection to Services Connection to services, located at the perimeter of the property. Please apply and pay all connection fees to the local authorities. Note Building of a dwelling is to be completed within 3 years of the transfer date. Construction period needs to be less than 12 months from commencement date of works.

88 COLOUR SCHEME Earth Colours COLOUR SCHEME Grey Colours COLOUR SCHEME Dark Colours HIPPY CREAM TEEPEE GREY OLD LARDER CREAM WINTER MIST SEA PINK ROSEWOOD COCONUT KELDERS PARCHED TEAR Walls CHAMOIS LEATHER POLISHED HIDE TORTILLA TALC POWDER FERNKLOOF WHITE LAVENDER STALK SUNSHINE FOOTPATH GREY BUSCUIT HEAD HAYSTACK KOGEL BAAI STONE FERNKLOOF DAWN STAR ANISE POLISHED PLASTER LEMON MERINGUE FIR PINE STANFORD WHITE SOFT WHITE RHUBARB GANSBAAI GREY THUNDER BAY OXFORD BROWN TRUE WHITE SHALE SAFE & SOUND GARDENSHED GREEN MUSLIN DIRTY GREEN BEAUTIFUL BLUE TIN BLUE TRUE BLUE POTENT VIOLET Trims VYGIE MIST VOËLKLIP MAUVE WATERBERG RED VELDSKOEN BROWN WHALE FIN BLUE GREY BLUE LAGOON BLUE TEA KETTLE BLACK SOFT GREEN ACACIA GREEN TENT GREEN PEARL FADED SEA FOAM LEEK GREEN BISCUIT HEAD HAYSTACK BOT RIVER BROWN NEARLY WHITE OXFORD BROWN VICTORIAN BROWN CELERY MARSH GRASS CLOUD BLUE BELL FLOWER BLUE HORIZON STORM GYPSY BLUE WHEEL BARROW ATLANTIC WINTER OVERALL BLUE HUMPBACK BLUE STARRY NIGHT Mouldings HEMEL EN AARDE MOM S DOUGH JUST PINK KOGEL BAAI STONE MOSS CARPET MOUNTAIN MIST ALUMINIUM CRYSTAL ROSEWOOD HAYSTACK RHUBARB KELDERS OXFORD BROWN GRANITE Roofs NIGHT SKY SEAGULL GREY BLUE RIDGE SIMPLY CHARCOAL FADED BARK NB. SELECT COLOURS FROM ONLY 1 COLOUR SCHEME. EXCEPT THE 5 ROOF COLOURS WHICH APPLY TO ALL SCHEMES. This CMYK colour breakdown is intended as a guide only, as printing cannot replicate the colour with 100% accuracy. Some of these products contain naturally mined materials, so an inconsistency in colour is to be expected. The final, finished colour also depends on your choice of sealer. Colour correct samples can be viewed at your local Earthcote store.

89 A SELECTED COLOUR RANGE BY MIDAS EARTHCOTE CREATORS OF GREAT SOUTH AFRICAN PAINT These colour palettes offer you the freedom to make distinctive personal choices, in a way that tones holistically with the Fernkloof environment. EARTH COLOURS: select Earth palette GREY COLOURS: select Grey palette HEAD OFFICE - (021) HERMANUS - (028) BREDASDORP - (028) DARK COLOURS: select Dark palette Available in matt, sheen or textured finishes. All in 100% washable acrylic.

90 FERNKLOOF ESTATE CONTRACTORS AGREEMENT AGREEMENT FOR QUALIFICATION OF AND CODE OF CONDUCT FOR CONTRACTORS, SUB-CONTRACTORS AND OWNER BUILDERS WITHIN THE FERNKLOOF ESTATE ("THE ESTATE") ENTERED INTO BY AND BETWEEN The Fernkloof Master Property Owners Association ( MPOA ) AND ("THE CONTRACTOR") 1. PREAMBLE The purpose of this agreement is to ensure integration between residential living and control over building activities within the Estate with minimal impact on the environment. These terms and approved conditions have been developed in terms of the Environmental Management Plan ( EMP ) for the Estate. The MPOA reserves the right to make amendments and additions to this document from time to time. 2. QUALIFICATION OF CONTRACTORS 2.1 Only contractors who can furnish at least three references of prior building contracts will be allowed to build in the Estate. 2.2 An owner builder who qualifies under 2.1 will be allowed to construct his own home. 2.3 Contractors are at all times responsible for their sub-contractors and employees while on the Estate.

91 3. RULES AND REGULATIONS The rules and regulations described below are intended to ensure that the quality of life for residents in the Estate is not unduly compromised and the impact to the environment is minimised by the construction operations, yet allowing for efficient construction by contractors. When a contractor is found to be in breach of the stated rules and regulations, a penalty will be levied. The extent of the penalty is detailed below the description of each rule and regulation. 3.1 Environmental controls The contractor acknowledges the importance of environmental sensitivity and agrees to conform to all environmental controls specified in this document and revised from time to time. These controls form part of the EMP for the development and are required to be legally enforced. Presently, these specifications include the following considerations Personnel Training a. Description All contractor and sub-contractor personnel will be required to be briefed on the Builders Code of Conduct. The main contractor must do these briefings before his personnel will be allowed to work on the Estate. b. Breach Personnel who have not been briefed will not be allowed onto the Estate Limits of building activity a. Description All activities relating to the construction operations of any dwelling must be confined to within the erf boundary where construction is taking place. This relates to location of personnel, sitting of storage bins, etc. b. Breach (i) Work by the contractor will be stopped until such time as the contractor's equipment has been moved to within the building site. (ii) The contractor will be fined R150,00 per transgression Site presentation a. Description The contractor will be expected to keep the appearance of his building site neat and tidy at all times. Building rubble must be removed from the site at intervals not exceeding one week, and litter must be removed from the site on a daily basis. No litter may be stored or mixed in amongst building rubble. Refuse drums/containers must be supplied for the purposes of storing refuse until removed from site by the contractor.

92 b. Breach (i) Should a builder not comply with the removal of building rubble, the rubble will be removed by an outside contractor and the costs thereof claimed from the builder. The contractor will be denied access to the Estate until such costs have been paid in full. (ii) Should wind blown litter be generated from the site, the contractor will be fined R250,00 per day until all refuse has been removed from the stand and the surrounding area Cleaning of vehicles/equipment a. Description Washing of vehicles and equipment will not be allowed on the Estate and must be carried out elsewhere. b. Breach The building contractor will be fined R500,00 per offence Fires a. Description No fires will be allowed on any part of the estate including the building site. b. Breach (i) The building contractor will be fined R per offence. (ii) The building contractor will, in addition, be held legally and financially responsible for any damage caused by the breach of this regulation Ablution facilities a. Description Contractors must make adequate provision for drinking water and temporary toilets situated on the building site for the use of their employees until such time as the water-borne sewer drainage is available. b. Breach (i) The contractor will be denied access to the Estate until such time as this regulation is complied with. (ii) In addition the contractor will be fined R500,00 per offence Spoil of excess material and building rubble a. Description The contractor must make adequate provision for removal of building rubble and excess material. No material or building rubble will be spoiled on the Estate. b. Breach The estate will appoint a person to remove all such spoil for the contractors account. In addition to this the contractor will pay R1 000,00 per offence.

93 Screening of building sites a. Description The contractor will be required to screen off the site with a 1,8m green shadenetting screen firmly attached with a minimum of 4 horizontal wire strands for vertical support and which vertical support must not be visible from the road. The screen must be kept in place and maintained for the entire building process and must be able to withstand the elements. b. Breach The contractor will be denied access onto the Estate until such structures are properly in place. 3.2 Hours of Work Public/Private time a. Description Contractors may only be present on the Estate during the following public time hours: Normal Weekdays 07H00 to 17H00 - Estate to be vacated by 17h30. Saturdays 08H00 to 13H00 Estate to be vacated by 13h30. Sundays Public Holidays No work permitted No work permitted b. Breach (i) Contractors may be escorted from the Estate by security during private times. (ii) In addition the building contractor will be fined R500,00 per transgression Permission to work during private times a. Description Contractors are not allowed on the Estate on Sundays and proclaimed public holidays without the written permission of the relevant precinct POA as these days are considered to be private time. Special applications for contractors to be present on site during private time should be lodged in writing with the relevant precinct POA at least one week prior to the private time activity. b. Breach (i) Contractors may be escorted from the Estate by security during private times. (ii) In addition the building contractor will be fined R500,00 per transgression Watchmen a. Description No employees will be allowed to remain on site during private time.

94 b. Breach (i) Security personnel may be escorted from the Estate by security during private times. (ii) In addition the building contractor will be fined R500,00 per transgression. 3.3 Vehicle Sizes Allowed a. Description Due to the road surfacing and limited road widths and radii the following restrictions are placed on any vehicle entering the Estate. (i) Only fixed axle design vehicles will be allowed. (ii) Maximum length = 9.1m (iii) Maximum width = 2.6m (iv) Maximum gross mass = 20,000kg (v) Maximum axle weight = 8,000kg b. Breach Vehicles larger than above will be denied access to the Estate. 3.4 Deliveries to Contractors General deliveries a. Description Contractors will at all times be responsible for the delivery personnel. All delivery times will be limited to public times as defined under 3.2 above. Size of delivery vehicles will be limited as defined under 3.3 above. Deliveries to the building site will take place only from the street frontage of the site. Access across adjoining erven may only be gained after obtaining written permission from the owner of such erf a copy of which must be lodged with the MPOA. b. Breach Penalties levied on the building contractor will be the same as if the contractor's employees were guilty of the transgression Concrete deliveries The delivery of concrete has the potential of causing the most damage to the road surfacing and landscape vegetation. It is therefore important that these deliveries are handled in a particular way.the following rules relate specifically to the concrete delivery vehicles. a. Description Drivers of concrete delivery vehicles must be briefed on this document. b. Breach (i) Drivers not briefed will not be allowed access onto the Estate. (ii) Drivers found contravening the Estate rules and regulations will be escorted off the estate and refused access to the Estate. The building contractor will be liable for penalties incurred by a concrete delivery vehicle.

95 a. Description The washing off of Readymix concrete delivery vehicles. Under no circumstances may concrete be spilt onto the road surface and the contractor will be held responsible for the repair to the road if this occurs. b. Breach The building contractor will be fined R500,00 per offence. 3.5 Storage Sheds/Huts a. Description The contractor will be allowed to erect green storage sheds/huts or containers within the boundaries of the building site and to a maximum height of 2,4m. The position of such structures must be indicated on the site diagram, which must be approved by the MPOA in terms of item 3.8 (iii) below. Storage facilities must be clean on the outside and in good condition. No advertising, writing or signage is permitted on the outside on the container. b. Breach The contractor will be instructed to remove any structures that do not conform to this regulation and may not continue/commence with building activities until this regulation has been complied with. 3.6 Security a. Description (i) The development is located in a secure and controlled environment and therefore individual watchmen will not be allowed on the Estate during private times. (ii) Personnel and sub contractors of the contractor must at all times comply with and adhere to the security procedures imposed by the relevant precinct POA and/or the MPOA from time to time. b. Breach (i) Any member of building contractor's staff not adhering to this regulation will be removed from site. (ii) In addition the building contractor will be fined R150,00 per transgression. 3.7 Speed Limit a. Description For security and safety reasons, the speed limit on the Estate for all contractors' vehicles is 20kph. The contractor is responsible for all his employees, subcontractors and delivery vehicles to ensure adherence to this rule. b. Breach The contractor will be fined an amount of R500,00 per transgression. Continuous non-compliance will result in the contractor being expelled from the site.

96 3.8 Building Plan Controls a. Description (i) The building contractor must ensure that a copy of the signed approved building plan must at all times be on site available for inspection by the MPOA s representative. (ii) Any variations to the approved building plan must be submitted to the MPOA or their authorized representatives for signed approval and may only be implemented once the variation has been so approved. (iii) Prior to commencing building the contractor must (i) set out the foundations for inspection and approval by the MPOA; (ii) confirm the height of buildings with the POA; (iii) set out and confirm the form of driveway with the MPOA; (iv) provide a site drawing indicating the position of storage shed(s); position of topsoil and excavated soil storage areas; the position of building material storage areas; and the position of deliveries. b. Breach (i) The contractor will be denied access to the Estate until the above documentation is in place. (ii) The contractor will be required to remove any structures that do not conform to approved plans. 3.9 Roads and Road Verges a. Description (i) The Contractor must ensure that the road in front of its building site is at all times swept clean. This is to minimize damage and ensure longevity of the road surface. (ii) The Contractor must ensure that the kerbs and sidewalks in front of its building site are adequately protected from damage by the building operations. (iii) Building material must be stored on the building stand. Special permission may be obtained from the MPOA to neatly store some material on the road verge directly in front of the building site. b. Breach (i) The contractor will be fined R150,00 per day for unswept roads. (ii) The contractor will be held financially and legally responsible for the damage to road surfaces and kerbs caused through its building operations Advertising a. Description (i) The contractor or his sub-contractors may not place any advertising material on the Estate. (ii) The contractor may place an approved builders board on the stand for the duration of the construction period. Builder's boards must be removed no later than one month after the construction has been completed. b (i) Breach Advertising material will be removed from the erf without notice.

97 (ii) (iii) Any material held by management for more than 2 days will be discarded. The contractor will be fined R150,00 per offence CONTRACTOR S DEPOSIT The contractor is required to lodge a deposit of R2 000,00 with the MPOA prior to commencing with any activities on site. The deposit, less any fines (for which the contractor will be notified in writing) will be refunded on completion of all construction activities and vacation of the site PAYMENT OF FINES a. Description The contractor will be notified in writing of any contraventions and the amount of each fine. Should the value of the fines exceed the deposit, the contractor will be required to lodge a further R2 000,00 deposit. b. Breach In the event of the contractor failing to pay any required deposit the contractor will be denied access onto the estate. SIGNED AT ON SIGNATURE HE/SHE NAME OF PERSON WHO WARRANTS THAT HE/SHE IS DULY AUTHORISED THE CONTRACTOR SIGNED AT ON SIGNATURE: HE/SHE NAME OF PERSON WHO WARRANTS THAT HE/SHE IS DULY AUTHORISED FERNKLOOF MPOA

98 INTRODUCTION TO ENVIRONMENTAL MANAGEMENT ON FERNKLOOF ESTATE Environmental Management on Fernkloof Estate is governed by the Operational phase Environmental Management Plan (OEMP). The objective of the OEMP is to provide a management plan that incorporates environmental factors that may be affected in future. The document has been drafted in response to the Record of Decision (issued by the Department of Environmental Affairs and Development Planning) authorising the development in terms of the Environment Conservation Act. The requirements of the OEMP are therefore legally binding. The OEMP is a live document and allows for regular revision and addition of requirements in future in order to ensure that the document may be implemented sufficiently thereby guaranteeing improved environmental management on the Estate. It is important to note that for purposes of the Property Owners Handbook, only sections of the OEMP that are directly relevant to individual property owners have been included. A full version of this document, including the volume dealing with management of the golf course itself, would be available via the Estate Manager. Furthermore, a Site Environmental Management Plan (SEMP) is included in this handbook. This document serves as a quick-reference guideline for individual home owners while construction takes place on the Estate. All requirements in this document need to be adhered to.

99 FERNKLOOF ESTATE Operational Phase Environmental Management Plan Volume 5A November 2006

100 Prepared by: Desireé du Preez MPhil Environmental Science Pri.Sci.Nat. Stefan Cramer BSc Hons Conservation Biology Ecosense cc November 2006

101 ROD OEMP DEA&DP RABCAV MPOA - POA BC LIST OF ABBREVIATIONS - Record of Decision - Operational phase Environmental Management Plan - Department of Environmental Affairs and Development Planning - Rabie Property Projects and the Cavcor Property Group - Master Property Owners Association - Property Owners Association - Body Corporate Figure 1: Figure 2: Figure 3: Figure 4: LIST OF FIGURES 1:1500 Aerial photo 1:700 Aerial photo Organisational structure of Fernkloof Estate. Communications between Fernkloof Estate and the Hermanus Golf Club. LIST OF APPENDICES Appendix 1: Layout Plan Appendix 2: Architectural Design Guidelines & Plant List Appendix 3: Precinct level Construction Phase Management Plan Appendix 4: Responsibilities table

102 Volume 5A, Fernkloof Estate Operational Phase TABLE OF CONTENTS 1 INTRODUCTION BACKGROUND FORMAT OF THE MANAGEMENT PLAN STUDY AREA TERMS OF REFERENCE OBJECTIVES OF THIS OEMP ADMINISTRATION OF THE OEMP LEGAL STATUS KEY LEGISLATION APPLICABLE TO THE ESTATE FINANCING OF THE OEMP REVIEW AND AUDITING OF THE OEMP REVIEW OF THE OEMP ESTATE MANAGEMENT ORGANISATIONAL STRUCTURE COMMUNICATION BETWEEN THE GOLF CLUB AND ESTATE Master Property Owners Association Property Owners Associations Body Corporates Estate Manager Homeowner MANAGEMENT PROGRAMME GENERAL MANAGEMENT Heritage features Perimeter fence Management of drainage system and storm water Fire Management Emergency response and evacuation Waste Management Residential erven Open Space Waste Interface areas Roads LANDSCAPE MANAGEMENT Management of trees Invasive Alien Vegetation Control Landscaping Fertilization Herbicides and Pesticides Irrigation PRECINCT MANAGEMENT Vacant Erven House Construction/Building Activities Private Gardens...25 Ecosense 3

103 Volume 5A, Fernkloof Estate Operational Phase 1 Introduction This chapter provides the background to the Operational Phase Environmental Management Plan (OEMP) for the Residential Precinct entity known as Fernkloof Estate. This chapter provides the background to the OEMP that includes the format, objectives and terms of reference of the management plan. 1.1 Background The Fernkloof Estate and Hermanus Golf Course development represents a project of the Hermanus Municipality to enable residential development on municipal land as well as the upgrade of the (then) existing golf course. The development was approved in 2003 and construction commenced in During the design phase of the Estate and Golf Course, the developer team went to great lengths to minimise environmental impacts as well as enhance the natural surroundings of the Estate. This OEMP aims to provide the home owners with the necessary tools to ensure that this environmental ethos is continued throughout the lifetime of the Fernkloof Estate. The Fernkloof Estate and Hermanus Golf Club are located in the coastal town of Hermanus. It is extensive (143.22ha) and lies at the foot of the Kleinriviers Mountains, approximately 1.5 km northeast of the central business district. The residential area of East Cliff borders the Estate on its western boundary, with Fernkloof (also residential) forming its eastern property. Hermanus Heights and the Fernkloof Nature Reserve are located to the north. To the south, the Fernkloof Estate is bordered by residential development, with Main Road located one to two street blocks further south. The Berg en See residential development intrudes as a wedge into the Estate at its southern boundary (figure 1). Fernkloof Nature Reserve N Hermanus Heights East Cliff Berg en See Figure 1: Aerial photo of Hermanus with borders of Fernkloof Estate and the Hermanus Golf Course shown in yellow. Ecosense 4

104 Volume 5A, Fernkloof Estate Operational Phase 1.2 Format of the Management Plan This OEMP specifically addresses the management of the Fernkloof Estate. A second OEMP (Volume 5B) addresses the management of the Golf Course and associated areas. The two OEMP s form the fifth and final volume of a series of documents comprising the management plan for the entire development. The other four volumes comprise the Construction phase Environmental Management Plan and these are: Volume 1: Volume 2: Volume 3: Volume 4: Volume 5A: Volume 5B: Background, Responsibilities & Administration Alien Plant Control Programme Construction Phase Environmental Management Plan Landscape and Rehabilitation Environmental Management Plan Fernkloof Estate Operational Management Plan Hermanus Golf Club Operational Management Plan 1.3 Study Area The study area referred to in this volume of the OEMP consists of all the Residential Precincts. These precincts vary in size from 6 erven (precinct 1) to 98 erven (precinct 8 & 9) and are all private residential erven. Furthermore, these precincts include private common areas that need to be managed within the context of each precinct. The precincts of Fernkloof Estate are (Appendix 1 shows the layouts of the precincts in Fernkloof Estate): Precinct 1 Residential erven on the north western boundary. Precinct 2 Residential erven on the western boundary. Precinct 3 Golf lodges on the south western boundary Precinct 4 Golf lodges on the south eastern boundary Precinct 5 Residential erven on the southern boundary. Precinct 6 Residential erven on the eastern boundary. Precinct 7 Residential erven on the northern boundary. Precinct 8 & 9 Residential erven on the north eastern boundary. Figure 2: Aerial photo showing a close up of the Golf course before development of the land began. Ecosense 5

105 Volume 5A, Fernkloof Estate Operational Phase 1.4 Terms of Reference The OEMP must address precinct level management requirements as well as broad management specifications for the entire development. The Record Of Decision (ROD) lists issues that need to be addressed in the Environmental Management Plan (EMP). These form the terms of reference for this OEMP and are: Landscaping Alien vegetation removal Management of the golf course Design specifications Storm water management Spraying of pesticides Environmental financing and auditing. A comprehensive list of conditions relating to the approval can be found in the ROD and rezoning approval. 1.5 Objectives of this OEMP This document aims to provide a long-term management plan, which will form a platform regarding all environmental factors affected during the operational phase of the development. The objectives of this OEMP are: I.i. To ensure that management does and will continue to comply with legal and policy requirements. II.ii. To provide specific guidance relating to all operational activities. III.iii. To mitigate against random impacts through management protocols. IV.iv. To identify different role-players and their respective responsibilities. V.v. To provide a benchmark from which to monitor and assess environmental performance on the Estate. Ecosense 6

106 Volume 5A, Fernkloof Estate Operational Phase 2 Administration of the OEMP This chapter describes the legal context applicable to the management of the Estate. 2.1 Legal Status This OEMP has been drafted in response to, and in compliance with, the ROD initially issued by the Department of Environmental & Cultural Affairs and Sport (DECAS) on 11 July 2002 and amended / re-issued by the Minister of the Department of Environmental Affairs and Development Planning (DEA&DP), on 14 October 2003 (ref: AN 213/25/4 Hermanus Golf Course) authorising the development in terms of the Environment Conservation Act (No 73 of 1989). Further conditions pertaining to the planning and rezoning application issued by the Department of Environmental Affairs and Development Planning on 30 September 2003 (ref: Erf Farm 591/1, Hermanus, 24/1/6/3/k18/01). Obligations imposed by the OEMP are legally binding in terms of this legislation. The requirements of this OEMP do not release any respective management from fulfilling the requirements of any other legislation that may be applicable to Fernkloof Estate. 2.2 Key Legislation applicable to the Estate The following is a list of key laws that are applicable to the Estate. All relevant approvals and permits, or any other management requirements in terms of this, or any other legislation applicable to the development, as well as any future amendments to such legislation, are to be complied with. It should be noted that this is not a comprehensive list. Ecosense 7

107 Volume 5A, Fernkloof Estate Operational Phase Table 1: Legislation applicable to Fernkloof Estate Act, Ordinance, Policy National Environmental Management Act (No 107 of 1998) Environment Conservation Act (No 73 of 1989) National Water Act (No 36 of 1998) Conservation of Agricultural Resources Act (No 43 of 1983) Occupational Health and Safety Act (No 85 of 1993) Hazardous Chemical Substances regulations (25 August 1995) Atmospheric Pollution Prevention Act (No 45 of 1965) National Heritage Resources Section Description Relevance to Fernkloof Estate Principles Improving quality and consistency of environmental decisions Responsible management of a national, natural asset. 24 & List of Activities requiring authorisation If any activities listed are planned at the Caves then 24D before commencing permission to commence needs to be applied for S 28(1) Duty of care responsibilities Responsible for the duty of care of natural assets S 21, 22, 23 Listed activities with potential for detrimental effects to the environment, requiring an application to the Department of Environmental Affairs and Development Planning. Existing approvals and conditions are made in terms of this act. S 3(3) Regulation of flow and control of all water in South Africa Ensure usage of water remains within limits S 77 Licensing of water usage Boreholes and Rockfill dam S 22(2)c Use of waste water The use of effluent water for irrigation must be within the criteria of this section Reg 15 Declaration of weeds and invader Listed invader plants plants Reg 15 Combating invader plants Alien vegetation must be removed from premises. All S 9(1) 9A(1) S28 Primarily aimed at ensuring the health and safety of persons at work and specifies the basic systems that need to be in place and measures that need to be taken. Every employer must conduct his undertaking so as to ensure that persons other than his employees who may be directly affected by his activities are not thereby exposed to hazards to their health and safety. Storage and handling of hazardous chemical substances Prevention of air pollution (dust and smoke) S 44(1)). Presentation and protection of Heritage resources (Act No 25 of 1999) S 27(20) Minimum standard of maintenance Veld and Forest Fire Act (Act No 101 of 1998) S 12(1) Duty of land owner to prevent fire from spreading to neighbouring properties The staff needs to be protected from health and safety risks. Health and safety plans need to be in place and a safety officer must be appointed. The Estate must minimise the hazards to both members and visitors. Need to ensure the safety of people working with hazardous chemicals (specifically fuels), as well as safe storage, use and disposal of containers. The necessary steps to be taken in prevention of pollution on site Protection of trees and wash trough with heritage status Cautionary steps in avoiding the spread of fire to neighbouring properties, particularly Fernkloof Nature Reserve Ecosense 8

108 Volume 5A, Fernkloof Estate Operational Phase 2.3 Financing of the OEMP The Master Property Owners Association must provide the necessary funds to implement all management tasks specified in this OEMP. These funds are to be raised by the MPOA as part of the monthly levy paid by all home owners. Contributions towards any additional costs that need to be corporately covered by the Property Owners Associations (POA) must be divided proportionally to each precinct s size (number of home owners). Any actions required specifically as a result of actions by the Developer, Estate Management, the Golf Club or home owners would be cost recoverable or chargeable at the discretion of the MPOA, to the offending party. This will however be discussed with the offending party prior to the implementation of the corrective action. 2.4 Review and Auditing of the OEMP A biannual/6 monthly report is to be submitted by the Estate Manager to the MPOA on environmental management according to the requirements of the OEMP. These reports will serve as an internal audit, which will allow the MPOA to check on the implementation of the OEMP, evaluate management actions and prioritise the problems being experienced by the environmental management of the Estate. It will also reveal whether any of the environmental management specifications are impractical or if more stringent environmental management or monitoring and control by a relevant party is required. The MPOA is to keep records of all internal audit reports and make them available to the local or environmental authorities (should they be requested by the authorities). The MPOA, Golf Club Committee and the authorities may, if they feel it is necessary and by agreement, request an external audit at any time at the MPOA / Golf Club s cost. The management actions specified this document are binding and cannot be ignored or altered, unless agreed by the MPOA and the Municipality. An external audit is to be undertaken at the end of the construction phase of the development, when all precincts have been handed over to their respective management structures. This audit is to identify any problems with respect to environmental management on the Estate and make recommendations for improved management, amendment to the OEMP or training of management. Thereafter an external audit must be commissioned every three years. External audit reports are to be kept on record by the MPOA and made available on request, to the Overstrand Municipality and DEA&DP for their records and information. External audits are to be undertaken by suitably qualified and experienced environmental consultants. The quoting professionals should lay out their audit protocol and techniques in clear detail when the MPOA or Estate Manager calls for proposals. 2.5 Review of the OEMP This is a working document and it may be amended. Amendments need to be motivated and submitted to the Overstrand Municipality and Department of Environmental Affairs and Development Planning (DEA&DP). Subsequent changes and updates need to be copied to all parties utilising this document. The OEMP should be officially reviewed every 5 years. Ecosense 9

109 Volume 5A, Fernkloof Estate Operational Phase 3 Estate Management 3.1 Organisational structure The organisational structure for the Estate is depicted in figure 3. The Estate will be managed by a Master Property Owners Association (MPOA), which is constituted as a body corporate, in terms of section 29 of the Land Use Planning Ordinance (Ord 15 of 1985) (as amended). The MPOA will be established as a legal entity and come into existence and begin functioning upon the registration in the deeds office of the first of the erven in the Estate. The MPOA consists of the following membership: Each registered owner of a single residential erf in precinct 1. A representative of each POA in respect of the precincts on the Estate. A representative of each body corporate in respect of a sectional title scheme on a portion of the Estate. The development facilitator in its capacity as such during the development period until the home owners are able to manage the MPOA. Members from the Golf Club who participate in the MPOA in a non-voting capacity. Master Property Owners Association (MPOA) Estate Manager Golf Club Members (No voting rights) 6 Home owners of precinct 1 Representatives from precincts 3 & 4 Representatives from precincts 2,5,6,7,8 & 9 Golf Club Body Corporate (Sectional Title) Property Owners Association (POA s) Figure 3: Organisational structure of the MPOA 3.2 Communication Between the Golf Club and Estate The Estate is comprised of two entities namely the Golf Club, and Fernkloof Estate. These two entities operate independently of each other and are managed according to independent constitutions and guidelines. However due to the nature of the development, a certain degree of interaction would invariably occur, which would necessitate the need to communicate these interest and concerns. Ecosense 10

110 Volume 5A, Fernkloof Estate Operational Phase All communication will occur in a two-way direction between the Golf Club and the MPOA. All dialogue between the two will serve the best interests of its members and will be governed and guided through their respective rules and constitutions. Master Property Owners Association (MPOA) Hermanus Golf Club Committee & Club Captain Constitution and Rules Constitution and Rules Figure 4: Communications between Fernkloof Estate and the Hermanus Golf Club Master Property Owners Association The primary objective of the MPOA concerns the promotion, advancement and protection of the common interests of its members as well as the control of the common areas. The responsibility of the MPOA, with regard to the common areas, includes the care, repair, maintenance, cleaning, upkeep, improvement and property control for all such areas Responsibilities: The MPOA is the legal entity responsible for the management and maintenance of common property such as open spaces, security infrastructure, services and amenities and is thus to ensure that these areas are suitably managed. The MPOA is responsible for raising the finances for environmental control requirements as outlined in this document. To appoint and raise the finance to pay an Estate Manager. The finance shall form part of the levies received from the respective POA s. Each POA s contribution should be proportional to the number of home owners in the respective precinct. To ensure that the Estate complies with conditions imposed by the Council or any other authority with respect to ongoing management of the Estate, such as the monitoring and enforcement of the OEMP. To receive environmental management reports from the Estate Manager on a yearly basis. To make relevant changes to the OEMP and environmental management practices of the Estate as required, ensuring suitable management of the Estate and preventing potential environmental damage or pollution. Appoint an environmental consultant, or other relevant specialists, to advise on matters relating to environmental management with which the POA or Estate Manager are not familiar. Ensure that external environmental audits are undertaken as required in terms of section 2.4 of the OEMP and that the reports are submitted to the relevant authorities as required. Ecosense 11

111 Volume 5A, Fernkloof Estate Operational Phase Property Owners Associations The Property Owners Associations (POA s) are constituted as body corporates in terms of section 29 of the Land Use Planning Ordinance (No 15 of 1985) (as amended). The establishment of the POA s complies with conditions imposed by the Overstrand Municipality. The POA s will be established as legal entities and come into existence and begin functioning with the registration in the deeds office of the first of the erven in each of the precincts. Each precinct will have a POA, which is comprised of all the respective home owners. The function of the POA is to represent the interests of the people living in the respective precincts and to enforce agreed changes. A representative will represent each POA on the MPOA. Responsibilities: To control and maintain all private open spaces and private roads. To control and maintain all services, common landscaping, irrigation and amenities on the common areas. To control the compliance to the design guidelines. To promote, advance and protect the communal and group interests of members, including security. To take title to common areas simultaneously with the first separate registration of an erf. To enter into service agreements with the local authority or any other authority or supplier of services in regard to the supply of services in the development, including refuse removal and security services. To be familiar with relevant environmental legislation (and associated regulations) applicable to the Estate, and make all relevant parties aware of any changes or updates to the legislation. To ensure that documentation pertaining to the development, including the OEMP has been made available to all the trustees responsible for administering the POA. To keep a record of all updates to the OEMP. Control and enforce construction contracts and environmental management during housing construction, and resolve issues relating to environmental protection if required. Brief all building contractors on their environmental management responsibilities while on the Estate. Ensure that an agreement (Building Contractor s Code of Conduct Agreement) is entered into with each builder prior to the start of construction activities. The POA is to ensure compliance by the home owners and builders with all conditions of this contract, including the OEMP. Ensure that home owners comply with prescribed measures for landscaping and development of erven during initial development, as well as during maintenance and improvements to property. Address any other aspects of environmental management detailed in chapter 4 of this document for which the POA has been identified as the responsible party Body Corporates Two body corporates will exist representing precincts 3 and 4 respectively. Each body corporate will function as a separate entity, safe guarding the best interests of the sectional title owners in the respective precincts. A representative from both the body corporates will represent their precincts on the MPOA and will have the power to vote within the decision making process of the MPOA. Ecosense 12

112 Volume 5A, Fernkloof Estate Operational Phase Responsibilities: To control and maintain all buildings and or structures within the respective precincts. To control and maintain all services, common landscaping, irrigation and amenities on the common areas. To control the compliance and enforcement of all home owners to the design guidelines. To promote, advance and protect the communal and group interests of members, including security. To enter into service agreements with the local authority or any other authority or supplier of services in regard to the supply of services in the development, including refuse removal and security services. To be familiar with relevant environmental legislation (and associated regulations) applicable to the Estate, and make all relevant parties aware of any changes or updates to the legislation. To ensure that documentation pertaining to the development, including the OEMP has been made available to the trustees responsible for the administration of each body corporate. To keep a record of all updates to the OEMP. Control and enforce construction contracts and environmental management during housing construction, and resolve issues relating to environmental protection if required. Brief all building contractors on their environmental management responsibilities while on the Estate. Ensure that an agreement (Building Contractor s Code of Conduct Agreement) is entered into with the builder prior to the start of construction activities in the precinct. Address any other aspects of environmental management detailed in Sections 4 of this document for which the BC has been identified as the responsible party Estate Manager An Estate Manager will be employed by the MPOA to fulfil certain management obligations of the MPOA, POA s and BC s unless a precinct appoints a precinct manager to take over some tasks. The Estate Manager will be responsible for aspects of the implementation of the OEMP and general environmental management. In order to ensure that the Estate Manager is suitably equipped to perform these tasks, he/she will be required to undergo basic training prior to taking up the position. Training should be provided by an experienced environmental manager who is familiar with the issues of environmental concern on the Estate, and the requirements of the OEMP. If a precinct so chooses and appoints a Precinct Manager, then the he/she and the Estate Manager will work in conjunction with each other, sharing the management responsibilities for the specific precinct. Should the individual fulfilling the role of Estate Manager change at any time, the new Estate Manager is to undergo similar environmental training by either the previous Estate Manager or an experienced environmental manager. Responsibilities: Ensure that the care, repair, maintenance, cleaning, improvement, upkeep and property control for all common areas is carried out. Ensure that all external service contractors appointed by the MPOA enter into a Service Provider s Code of Conduct Agreement with the POA prior to the start of work on the Estate by that service provider. Ecosense 13

113 Volume 5A, Fernkloof Estate Operational Phase Brief all external contractors involved with any works within the development on their environmental management requirements and other requirements in terms of the Service Provider s Code of Conduct while on the Estate. Facilitate environmental audits by an external auditor, as required. Monitor the compliance of POA s with the specifications listed in the OEMP. Liase with the POA s, BC s and the local authority regarding matters pertaining to environmental management. To control and maintain all private open spaces and private roads in the study area. To control and maintain all services, common landscaping, irrigation and amenities on the common areas. To control the compliance and enforcement of all Homeowner s to the design guidelines. To promote, advance and protect the communal and group interests of members, including security. Ensure that Homeowner comply with prescribed measures for landscaping and development of erven during initial development, as well as during maintenance and improvements to property, as specified in chapter 4.3 of this document. Address any other aspects of environmental management detailed in Section 4 of this document for which the POA has been identified as the responsible party Homeowner The Homeowner is the registered owner of each erf within a precinct. Responsibilities of the home owners as detailed in this document will apply to the original Home owners as well as any future Home owners, tenants or occupants of dwellings within the Estate. Responsibilities: Abide by all design guidelines, constitutions, estate rules and others conditions imposed by the POA, the conditions of sale, or as specified in the OEMP. Comply with the landscape and architectural guidelines for the Estate. Ensure that all construction activities (including initial construction as well as any subsequent alterations or additions) related to their dwellings are undertaken in accordance with the design manual and the Building Contactor s Code of Conduct Agreement, as well as any additional requirements of the Estate Manager as required for suitable environmental management during construction. Any other aspects of environmental management detailed a responsibility to the Home Owner in the OEMP. Ecosense 14

114 Volume 5A, Fernkloof Estate Operational Phase 4 Management Programme 4.1 General Management This section presents management responsibilities, which are specific to Fernkloof Estate Heritage features Several heritage sites exist on and around the Estate. Heritage consultants have identified these features as being of significant importance. These areas need to be considered and managed in the overall running of the Estate. The following areas are identified as heritage sites in the vicinity of the Estate: The wash troughs on the northern end of Fairways Avenue The Blue Gum Western windbreak on Fairways Avenue The Blue Gum Eastern windbreak on Theron Street The old Oak tree on the golf course (responsibility of golf course) The eastern windbreak falls outside the property of the Estate and will therefore need to be managed by the Municipality. The western windbreak and the wash troughs, however, fall within precinct 1 and 2 and will therefore be the responsibility of the Estate Manager. Methods: Wash troughs need to be cleaned of leaf litter and other debris on a monthly basis. Residents should be made aware of the legal requirements to preserve these features. The western windbreak of gum trees is the responsibility of the Estate. This windbreak should be managed as a part of the Estate. The Municipality / Development Facilitator must ensure that an arborist is satisfied that the trees are reasonably safe prior to handover into the operational phase. The eastern windbreak of gum trees exists outside of the boundaries of the Estate and must be managed by the municipality. Responsible parties: Estate Manager Municipality Golf Club Update References: Date Ref. No Perimeter fence The perimeter fence (in some areas it will be a wall) is designed as a security barrier from intruders and problem animals such as baboons. The fence extends around most of the Estate and golf course. It is vital that the perimeter fencing is managed and maintained, ensuring that its function and design remain consistent throughout its lifetime. Gaps in the fencing, which are to function as entry/exits points for fauna, are included in the design. Furthermore, public access points are also incorporated at strategic points. The perimeter fencing includes a double strand of electrical wiring. All alterations to the perimeter fencing and walling, whether it be replacements or adjustments to original demarcations, must be approved by the MPOA. The MPOA must ensure that the fence / wall continues to conform to the original design specifications. Ecosense 15

115 Volume 5A, Fernkloof Estate Operational Phase Method: No section of the fence / wall shall be removed without the permission from the MPOA The aesthetic standard of the fence needs to be retained by continuous maintenance with regard to painting and repair along the entire extent of the fence. Landscaping and the planting of shrubs around the gaps are to be used to disguise these entry/exit points. This will be done in order to promote safety. Responsible parties: MPOA POA all managed by the Estate Manager BC Update References: Date Ref. No Management of drainage system and storm water The entire drainage and storm water system needs to be continuously maintained, to ensure both appropriate drainage of golf course areas and the maintenance of the ecological habitat quality provided by these areas. This is especially necessary with reference to winter and the mountain backdrop diverting water down into the low-lying areas. With the surrounding gradient, precaution must be taken to avoid silting up of pipes and culverts. Storm water swales are positioned at certain points on the Golf Course to transport storm water to detention/retention facilities. These swales are planted with or would become colonised by natural vegetation. Indeed, the entire drainage network has in the past provided habitat for a range of insects and small aquatic animals (such as the arum lily frog). Management of this system thus should ensure its functional roles of both water removal and ecological habitat. To this end, the key management task relates to prevention of erosion or silting of pipes, vegetation control and water quality management. Method: Prior to winter all pipes, culverts and manholes shall be inspected and cleaned where appropriate. Siltation over 100mm deep within the pipes and 150mm in the culverts must be cleaned and disposed of before the onset of winter rains. Litter traps must be maintained over all pipes entering the Mossel River. These must be cleared on a monthly basis during the winter rainfall months. No chemicals (i.e. fuel, oil, paint, detergents, herbicides) may be dumped or washed into the storm water system. Vegetation in the storm water swales must be maintained in as natural a state as possible. Visually check the storm water swales/channels for signs of erosion after heavy rainfalls, and take the necessary measures to rectify problems. Responsible parties: MPOA POA all managed by the Estate Manager BC Update References: Date Ref. No Ecosense 16

116 Volume 5A, Fernkloof Estate Operational Phase Fire Management Vegetation in the Fernkloof Nature Reserve adjacent to the development consists largely of Mountain Fynbos. This, like most other fynbos, is a fire dependant vegetation type, prone to bush fires, especially during late summer months when temperatures, as well as fuel loads are high. While this poses a fire risk to the development, any fires that may spread from the development into the adjacent reserve may have detrimental effects on the veld. While species of this vegetation type often require fire for germination of seeds, a second fire prior to seedlings reaching maturity would result in reduced seed production and thus a change in population structure. Furthermore, due to the Reserve s close proximity to residential houses, these houses are put at risk. As a result, both fire prevention and fire control will be an important aspect of the long-term management of the Fernkloof Estate. As part of the management of the wetlands include a burning program (covered in Volume 5B); provision needs to be made for fire management and preparedness in this regard. Method: No residents or any other parties will be allowed to burn any materials anywhere on the Estate, Golf Course or private erven. Braai areas have to be incorporated into the wall of the house, screen wall or boundary wall as specified in section 4.6 of the Design Guidelines appendix 2. No composting or stockpiling of plant material is permitted. All waste plant material resulting from maintenance of private areas or general garden refuse is to be removed from the Estate with refuse to reduce fuel loads. The Estate Manager is to identify any other activities/sources that may pose a fire risk. The Estate Manager must advise residents on suitable fire prevention management. No fireworks are permitted in the Estate. Fire hydrants must remain clearly marked and restricted from any obstructions (e.g. cars parking in front of them). A fire emergency plan (evacuation and response) needs to be compiled by the MPOA. This plan must include a map indicating hydrants and escape routes and needs to be avaliable to all home owners as well as being posted at each precinct s gatehouse. Home owners adjacent to the Nature Reserve or wetlands should keep an area of short vegetation or paving free from flammable materials to act as a fire break. Responsible parties: MPOA POA all managed by the Estate Manager BC Update References: Date Ref. No Emergency response and evacuation In the case of a fire occurring on the Estate, it is vital that the correct procedures are followed. An appropriate fire response procedure will ensure that fire control services are notified as soon as possible, resulting in reduced damage and risk to people s lives. Method: The MPOA needs to compile an emergency fire response plan, which would detail response and evacuation procedures for the Estate. The Estate s fire response plan must be drafted in conjunction with that of the Fernkloof Nature Reserve. Emergency exit routes must be identified and maintained even if they only allow pedestrian access. Ecosense 17

117 Volume 5A, Fernkloof Estate Operational Phase All home owners and employees should be familiar with the position of the evacuation routes as indicated on an emergency evacuation plan provided by the MPOA. The fire response and evacuation plan, which is to include details of evacuation procedures and routes, as well as positions of all fire hydrants on the Estate, is to be displayed at each precinct s gatehouse. The fire response and evacuation plan is to be copied to the local fire station. A reduced size copy of the fire response and evacuation plan is to be available for all home owners. The Estate Manager is to be competently trained to deal with the use of fire fighting equipment in the Estate and to assist with evacuations as required. All fire fighting equipment is to be serviced yearly. The Estate Manager is to be trained as a Health and Safety Officer. The Estate manager is to ensure that there is a first aid kit at each gate house to every precinct. A list of local emergency services and their numbers will be displayed at the various gatehouses and the Estate Manager s office. Responsible parties: MPOA POA all managed by the Estate Manager BC Update References: Date Ref. No Waste Management Large quantities of waste can be expected and needs to be managed efficiently and effectively. The ROD requires that where possible waste is to be managed within an integrated waste management program. The Hermanus Municipality controls a successful integrated waste management program. Various awareness campaigns are operational and include brochures and free transparent rubbish disposal bags. The Municipality provides transparent bags, into which any recyclable waste can be discarded. After removing these bags, the Municipality organises recyclable waste sorting it into the various categories. The Municipality can cater for the following substances: paper, glass, cardboard, tin cans and soft plastics. Small amounts of organic waste can also be removed. The quantity that the municipality are able to dispose of is equivalent to one transparent disposal bag per household. All organic waste in excess of this must be removed privately Residential erven Waste management for the residential erven refers to each privately owned erf, which includes the owners of Golf Lodges. Over a period of time, households can generate large amounts of waste, which needs to be appropriately managed and disposed of. The municipality is in agreement with the Estate to collect rubbish from outside each house and from the refuse rooms at the entrances to precincts 3 and 4 (Golf Lodges). Methods: All waste will be collected weekly on days as stipulated by the Municipality. Waste may not be left outside for collection more than 18 hours before it is to be picked up by the Municipality. If waste is not picked up it must then be stored in a designated area on the individual erven. Integrated waste management must be encouraged in every household through the handing out of information brochures and awareness posters. This will involve separating organic / hazardous waste (e.g. batteries) from recyclable waste. Ecosense 18

118 Volume 5A, Fernkloof Estate Operational Phase Pet litter should be cleared daily and disposed of with other waste. Organic waste in excess of one disposable bag needs to be removed privately, by the responsible parties. Responsible parties: Home Owner Municipality Update References: Date Ref. No Open Space Waste Waste from green spaces would be plant material and clippings and litter. This needs to be removed and a visually clean environment ensured. Methods: Organic waste must not remain on the property for longer than a week, due to the danger of accumulating fuel loads. Home owners should also be allowed to make use of this for disposing of garden waste. Pet owners must clean up after their pets. Estate staff will be instructed to pick up litter daily. Chemical waste should be stored in separate containers provided by the contracted waste company who will also remove the respective waste and drop it off at the relevant waste site. Responsible parties: MPOA POA all managed by the Estate Manager BC Update References: Date Ref. No Interface areas The numerous interface areas exist between the Golf Course, Private Erven, Wetlands and Estate boundary lines. The following areas are identified as potentially contentious interface areas and will need to be addressed: Golf course and residential erven boundaries Golf course and Estate perimeter fencing/walling Golf course and the Wetlands The Wetlands and the residential erven boundaries Methods: If the boundary between the golf course and residential erven is not clearly marked, it will in time become vague and consequently the management of these separate areas may become ambiguous. Therefore private erven at the point of bordering to the golf course, need to be clearly marked with a permanent structure which conforms to conditions stipulated in the design guidelines (appendix 2). These markers need to be long lasting, easily identifiable and unobtrusive, so that at any time private property can be distinguished from the golf course. Furthermore the responsibilities of the respective Home Owner and Golf Course Superintendent start and end at the point where private property meets the golf course. Each respective management party needs to oversee their areas of responsibility in accordance to the guidelines stipulated in the OEMP and design manual. Management between the golf course and the perimeter walling is the responsibility of the Golf Course Superintendent as either out of play areas or wetland. The management of the fencing/walling is the responsibility of the Estate Manager. Ecosense 19

119 Volume 5A, Fernkloof Estate Operational Phase Management of the Wetlands is the responsibility of the Golf Course Superintendent. The wetlands will be separated from the golf course by cart paths or a suitable hard boundary. These cart paths will function as both a management boundary as well as a buffer from invasive grasses (such as kikuyu) from entering the wetlands. Interface areas between the wetlands and private residential property needs to be carefully demarcated as well as managed. The boundary lines of the private erven need to be carefully demarcated in a manner that conforms to the design guidelines (appendix 2). The management within the boundaries of these private erven bordering on a wetland are the home owners responsibility, who needs to ensure that they are familiar with the wetland management requirements. The wetland itself is the responsibility of the Golf Course Superintendent. Responsible parties: Golf Course Superintendent Estate Manager Home Owner Update References: Date Ref. No Roads The maintenance of internal roads includes the upkeep of the hard road surface, pavement areas, landscaped verges and islands. Three sections of road fall outside of the responsibility of the Estate and subsequently are the responsibility of the Municipality. These are The section of road behind precinct 7 bordering on the Fernkloof Nature Reserve The entrance road into precinct 5 The entrance road of the Golf Club. Methods: Roads and road verges need to be cleaned on a regular basis. The waste which results must be discarded according to waste management principals stipulated in this document To maintain the quality of the roads, regular maintenance must be initiated, which must be undertaken in an environmentally sound manner that would prevent substantial pollution accidents (e.g. from concrete spills). Signage and road markings must be maintained. Responsible parties: POA BC Update References: Date Ref. No Ecosense 20

120 Volume 5A, Fernkloof Estate Operational Phase 4.2 Landscape Management This section refers to areas within the residential precincts that require maintenance with regard to the upkeep of public open space Management of trees The trees on the Estate contribute strongly to the character of the area. Corridors of trees guide the fairways and contribute further to a sense of place as well as functioning as a visual barrier. Furthermore, these trees perform important ecological functions that include the provision of habitat and the stabilisation of the substrate. All trees with heritage status are either on municipal land or the Golf Course. Methods: All large trees found on the Estate at the start of the operational phase should be kept and maintained as necessary. Trees will be pruned as required to keep them safe and neat. Should the planting of new trees be required, only species from the approved plant list (attached as appendix 2) may be considered. The municipality / development facilitator must ensure that an arborist is satisfied that the trees do not pose a safety hazard to people prior to handover into the operational phase. Responsible parties: MPOA POA all managed by the Estate Manager BC Update References: Date Ref. No Invasive Alien Vegetation Control During the initial development of the Estate, a large percentage of existing invasive alien vegetation was removed from the Estate. This consisted mainly of Australian Myrtle (Leptospermum laevigatum), Gums (Eucalyptus spp) and Wattles (Acacia longifolia, Acacia mearnsii, Acacia saligna). Due to the seed bank that is likely to exist in the soil in some areas and the presence of aliens on neighbouring properties, it is expected that seedlings will emerge for a number of years following the initial development. Grasses (especially kikuyu and cynodon) common to the golf course are aggressive spreaders and control of their spread into restricted areas, especially wetlands, should be closely monitored. Alien vegetation control on the Estate, although not expected to be intensive, will have to be undertaken on an ongoing basis, but particularly in initial years. The list of approved plant species (Appendix 2)for the Estate does not include any species currently listed under the National Conservation of Agricultural Resources Act (CARA) (Act 43 of 1983). Should any additional species be added to this list of plant species banned in terms of CARA, the approved plant list for the Estate is to be amended accordingly. As required by law, no invasive alien plants will be tolerated on the property (whether communal or private) and will be eradicated. Method: Check the open spaces of the entire Estate once a year during spring or early summer for seedlings of invasive alien species. A plan must be referred to and areas should either be named or numbered in order to ease the management thereof. Hand pull or hoe out alien invasive seedlings in order to ensure their roots do not develop and offer least resistance to removal. Only use herbicides when mechanical methods are not practical. Ecosense 21

121 Volume 5A, Fernkloof Estate Operational Phase Remove plant material from the site and dispose of it as waste. Home owners must remove invasive plants from their plots whenever observed. Should this not be done, the Estate manager will remove such plants at the owners cost. Responsible parties: Estate Manager Home owners Update References: Date Ref. No Landscaping The entire Estate will be subject to the Fernkloof Estate Design Manual, which provides a list of approved plant species for the development according to which initial landscaping of the Estate will be been conducted. This document also provides any Landscape Contractor with details regarding landscape maintenance requirements. Methods: All on going planting and maintenance of landscaped areas is to be done in keeping with the landscaping requirements as detailed in the Fernkloof Estate Design Manual and any future amendments thereto. All Landscape Contractors or labourers appointed to maintain landscaped areas on the Estate are to be made aware of all environmental management requirements while on the Estate, including details regarding management of alien vegetation, approved planting lists, as well as irrigation with water containing treated effluent. The application of mulch to landscaped areas is encouraged to reduce water loss from soils and to prevent growth of weeds. Responsible parties: Estate Manager Home Owners Update References: Date Ref. No Fertilization Fertilization of landscaped areas will be required to enhance and promote the growth of certain stands of plants. This should be used with care to prevent damage to wetlands and fynbos. Methods: Following the initial development and installation of the landscape elements, the use of organic fertilizers is encouraged where possible instead of chemical fertilizers. Where use of a chemical fertilizer is essential, applications must not exceed the manufacturer s specifications. Compost must be clean, meaning it is not to contain foreign matter such as plastics and other litter, and is to be free of weeds or seed of exotic plants. Note that due to potential hazardous chemical reactions in the case of spillages, no fuel and fertilizer should be stored in the same space at any time. Responsible parties: MPOA POA BC Home owners Update References: Date Ref. No Ecosense 22

122 Volume 5A, Fernkloof Estate Operational Phase Herbicides and Pesticides Occasionally herbicides and pesticides may be used on the Estate, specifically in landscaped areas where the spread of plants or insects / pests that may have a detrimental effect on the environment is more likely. The practice of pest control should be viewed in conjunction with monitoring for disease and pests and the use of chemical control should only be considered when essential. Methods: Pesticides and herbicides must only be used on the Estate when essential. Application of herbicides and pesticides may not exceed the manufacturer s application specifications. Application of herbicides and pesticides is to be done in such a way that the application is targeted at the area of concern and does not result in contamination of surrounding areas. Application of herbicides and pesticides should thus be undertaken on rain-free and windless days for maximum efficiency. Responsible parties: MPOA POA all managed by the Estate Manager BC Home owners Update References: Date Ref. No Irrigation The Estate must be irrigated in a sustainable manner. This requires constant management of irrigation equipment and monitoring of weather, soil and plant conditions. Most common landscaped areas are irrigated by means of automatic pop-up and stand pipe sprinklers. This will be controlled from a central control point, operated from the respective gatehouses. Methods: In the case of irrigation with water which contains treated sewage effluent, the requirements of the Western Cape Provincial Guide: Permissible Utilization and Disposal of Treated Sewage Effluent (September 2004), as well as any requirements of the Department of Health are to be strictly complied with. Irrigation schedules are to be adjusted in accordance with the current irrigation demand. Summer and winter demands will not be the same. Irrigation of landscaped areas should not take place when it is raining. All treated effluent water points where uninformed persons could possibly drink contaminated water shall be provided with notices indicating that it is potentially dangerous to drink the water. Regional water restrictions take precendence over irrigation of the Estate Responsible parties: MPOA POA BC Estate Manager Home owners Update References: Date Ref. No Ecosense 23

123 Volume 5A, Fernkloof Estate Operational Phase 4.3 Precinct Management This section concentrates on the management of erven and the responsibilities of the Home Owner. The primary focus of this section is the management of construction activities initiated by the home owners in all the precincts. This includes the sectional title properties within precincts three and four. Property owners, within all the precincts, are subject to the requirements of a constitution(s) and have three years within which to build. Precinct three and four will contain Golf Lodges, which will be built in time and sold off as sectional title units Vacant Erven Registered home owners will be required to commence construction of dwellings on the respective residential erven within three years from date of first transfer of the residential erf from the Developer into the registered owner's name. Prior to the start of construction activities on each erf, management of the vacant erf will be the responsibility of the owner thereof. Should the owner fail to implement any management requirements, the POA may appoint a contractor to do so, for the account of the owner. Methods: All vacant erven are to be cleared of alien vegetation seedlings on an annual basis. Seedlings should be mechanically removed while they are small enough to do so. The use of chemicals for alien vegetation control on vacant erven is discouraged. Grass and other vegetation on the erven is to be suitably managed to ensure that it does not pose a fire risk. All plant material cleared from private erven is to be removed from the Estate and not left on the erf. No dumping is allowed on private erven or open spaces. Responsible parties: MPOA POA BC Estate Manager Home owners Update References: Date Ref. No House Construction/Building Activities A number of documents associated with the Estate provide conditions to ensure that the design, construction, and renovation of houses, as well as landscaping on the property takes place in an orderly fashion within the constraints set to enhance the aesthetic character of the Estate. These documents include: The Agreement of Sale; Fernkloof Estate Design Manual; Building Contractor s Code of Conduct Agreement; Estate Rules. During both the initial construction of dwellings and any subsequent renovations, additions or alterations to the dwellings, there is potential for disturbance to the surrounding environment and home owners if construction activities are not suitably managed. Detailed specifications for construction activities have been provided in the Building Contractor s Code of Conduct, and include aspects relating to environmental management. Ecosense 24

124 Volume 5A, Fernkloof Estate Operational Phase Methods: All construction activities are to be guided by the construction phase environmental management plan for that precinct (see Appendix 3). The POA on behalf of the Home Owner is to enter into a Building Contractor s Code of Conduct Agreement with the builder and the POA prior to the start of any construction activities on his or her private erf. (This is applicable to initial house construction as well as any subsequent renovations or alterations.) All building and related contractors and subcontractors involved with the construction of individual dwellings are to be made aware of the conditions of the Building Contractor s Code of Conduct Agreement as well as any additional environmental management requirements during works on the Estate. Construction of a dwelling must be completed within one year of the date that the registered Home Owner commences construction. Completion implies that all construction related material, equipment and waste have been removed from the Estate and disturbed areas around the Estate have been suitably rehabilitated to the satisfaction of the POA. The Estate Manager is to monitor all construction activities on the Estate and identify any problems that may result in environmental damage and make recommendations to the building contractors for mitigation or remedial action required. Prior to the Building Completion Certificate being issued and the building contractor moving off the Estate, the Estate Manager is to confirm that he is satisfied that all waste and materials have been removed from the Estate and that all relevant areas have been suitably cleaned and rehabilitated. Any unsold plots will be managed and kept clean by the Estate Management until they are sold. Any damage to council property, roads, kerbs or services caused by a home owner or any party employed by the home owner during housing construction will be repaired by the contractor, to original Council specifications, or by the local authority at the cost of the home owner/contractor. Responsible parties: MPOA POA BC Estate Manager Home Owners Update References: Date Ref. No Private Gardens All landscaping within privately owned erven is to be strictly conducted within the Design Guidelines for the development, attached as Appendix 2, as well as conditions of section 4.2 dealing with general landscaping within the development. Methods Prior to landscaping, it is the responsibility of the land owner to ensure that he/she is in possession of a copy of the landscape guidelines for the development, and is familiar with the general landscaping conditions. The use of banned, or undesirable plant species in landscaping is to be closely monitored. Any plant not included in the landscaping list, or otherwise indigenous to the area is to be removed by the home owner. The Estate Manager reserves the right to inspect garden areas having given notice to the landowner and made the necessary inspection arrangements, and may request the removal of any plant not considered suitable. Ecosense 25

125 Volume 5A, Fernkloof Estate Operational Phase On plots bordering the Fernkloof Nature Reserve or wetlands, there should be a buffer of low vegetation or paving to reduce the risk of fire spreading to the plots. Home owners who border on any of the wetlands must must be encouraged to apply fertilizers, herbicides and pesticides with care and only when absolutely necessary only to avoid contanimation of the wetland. Responsible Parties: Estate Manager Home owners Update References: Date Ref. No Ecosense 26

126 ERF / SITE ENVIRONMENTAL MANAGEMENT PLAN (SEMP) The SEMP is intended to accommodate and supplement the planning and controls for individual erven. This should ensure that appropriate housekeeping and care for the environment takes place during the house construction phase. The various Precinct POAs for the development should ensure that: a member of the Precinct POA is tasked for the purpose of overseeing the implementation of SEMPs. The terms of reference for this position shall form part of the Precinct POA documentation. all property owners are made aware of the contents of the master EMP for the Fernkloof Estate. every property owner submits a SEMP for approval by the POA prior to any construction commencing. contractors enter into a Contractor s Agreement with the POA (refer to Estate Rules item 10). Each property owner shall submit an A3/A4 plan, including details of control and mitigation measures for the individual properties. This should be done when the footprint and architectural design drawings have been finalised. The documentation will be submitted to the various Precinct POAs for approval*. During construction, should the POAs deem that non-compliance has taken place, the works may be stopped until all requirements are fulfilled. * Precinct 1 property owners will be required to submit their SEMPs directly to the MPOA. The SEMP shall as a minimum contain the following: A dimensioned plan indicating the footprints of structures on the property Any no go or sensitive areas as a result of recommendations or requirements from authorisations or specialist reports for the area, generally outside erf boundaries Toilet and ablution facilities (1 per 15 persons on site) Stockpile areas materials handling, storage Entrances and exits to the erf during construction Noise, erosion and dust controls Demarcation of site boundary and fencing Waste & rubble management 1

127 Protection of sensitive features (trees, retained natural vegetation, water courses, etc) Name and contact details of responsible person controlling the site. The following legends are to be used to indicate the various elements on the A3/A4 plans for the individual erven: No go No go areas (i.e. golf course, landscaped verges, wetlands, water features, Private Open Spaces, adjacent private property) WC Ablution facilities (i.e. wash areas and chemical toilets) Stockpile areas (i.e. materials stockpiles, such as bricks, cement, wood, paint, etc.). Please indicate which are applicable on the plan. Access routes for vehicles and workmen. Demarcation of site boundary and fencing as specified by the POA. Waste disposal drums or bins (i.e. one for solid waste such as cement bags, shrinkwrap, paint containers, as well as one for liquid waste materials such as leftover paint, cement). Please indicate which are applicable on the plan. Protection of sensitive features 2

128 REFUNDABLE ITEMS REQUIREMENTS PRIOR TO CONSTRUCTION ITEM NUMBER DESCRIPTION AMOUNT PAYABLE 1 VERGE DEPOSIT R CONTRACTORS DEPOSIT R DATE PAID ADDITIONAL ITEMS 2 remotes at no cost ITEM DESCRIPTION NUMBER 1 REMOTES (MAXIMUM OF 3 at R230 each) Number Number 2 3 AMOUNT PAYABLE SIGNATURE ADMINISTRATIVE REQUIREMENTS ITEM DESCRIPTION NUMBER 1 PLANS APPROVED BY COUNCIL 2 APPROVAL OF SITE ENVIRONMENTAL PLAN BY MPOA 3 3 REFERENCES FOR BUILDER 4 NHBRC COMPLIANCE 5 CONTRACTORS AGREEMENT DATE APPROVED

129 HANDOVER PROCEDURE The following is a preamble to Handover addendum, which is to be signed, and monies paid, prior to commencement of any building. Receipt of Handbook One handover manual per plot will issued to the assignee. Please familiarise your self with this document. Verges Deposits In terms of the Constitution of the Fernkloof Estate Precinct Association, clause no 9.1, a verge deposit is due upon submission of building plans to the Master Property Association. This amount has been set at R (Fernkloof Estate Newsletter of August 2006). The banking details for the Verge Deposit are as follows: REFERENCE: STAND NUMBER / PRECINCT NAME / SURNAME Voëlklip Administration CC t/a Fernkloof Estate POA Trust First National Bank, Hermanus Branch Code: Account Number: This amount is refundable on completion of all construction activities on site, less monies deducted for any damage (where applicable) Site establishment will only be allowed when the proof of deposit has been submitted and the document stamped by the Estate Manager.

130 Contractor s deposit In terms of the Fernkloof Estate Contractor s Agreement, clause 3.11, a contractor is required to lodge a deposit of R with the MPOA prior to commencing with any activities on site. The banking details for the Contractor Deposit are as follows: REFERENCE: STAND NUMBER / PRECINCT NAME / CONTRACTORS NAME Voëlklip Administration CC t/a Fernkloof Estate POA Trust First National Bank, Hermanus Branch Code: Account Number: This amount is refundable on completion of all construction activities on site, less any fines as described in the in the contractor s agreement. The site is to be clear of all building rubble and solid waist as determined by the Managing agent. The contractor will be notified in writing of any fines due. In terms of clause 3.12 of the Fernkloof Estate Contractor s Agreement, should the value of the fines exceed the deposit, the contractor will be required to lodge a further R deposit. Site establishment will only be allowed when the proof of deposit has been submitted and the document stamped by the Estate Manager. Environmental Management Programme In terms of the EMP a sketch is to be submitted to the Estate Manager showing the following (see attached example) 1. Footprint of proposed structure 2. Location of temporary toilets and outlets 3. Location of existing trees (where applicable) 4. Proposed storage facilities Remotes Once the above requirements are met, two remotes will be issued free of charge to the purchaser. Additional remotes can be purchased (with a maximum of three additional remotes per plot owner) at a rate of R75 per unit. Additional units that may be required are to be indicated on the submission sheet. The remotes are programmed to open the sliding gates to your precinct, in addition the other buttons can be programmed for other uses as required. They are also engraved and registered for your protection.

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