LEASE AGREEMENT

PARTIES:
James Mugodo
…………………………………………………………………….. (Owner) and

…………………………………………………………………….……. (Tenant)

1. Premises to be leased
a. The Owner leases to the Tenant Shop 3 (“the Premises”) in the Mukutano
complex, Stand 2203 Eastview, Phase 7, Harare.

2. Period of lease

Fixed period: 3 months

Fixed period of this Lease Agreement commences on: 04 /11 /2024

and ends on: 03/02 /2025

a. Unless the Agreement is terminated in accordance with 9 and 10, the Agreement
will continue as a periodic tenancy.

b. Upon the termination of the Agreement, the Tenant will agree to immediately
vacate the property.

3. Lease payments
a. The monthly rent payable by the Tenant to the Owner in respect of the Lease
shall be US$150 for the first 3 months and US$200 per month for the subsequent 9
months. The lower rent of US$150 in the first 3 months is an extension of goodwill from
the Owner to the Tenant to assist the Tenant in establishing the business. Note that the
rent is reviewed every 12 months.

b. The rent shall be paid in advance. It is due on the first of the month with a grace
period of up to the 4th day of each month. The rent is be paid to the Owner, or as
advised in writing by the Owner from time to time.

c. If the rent is not paid by the 4th day of each month, the owner may take action to
recover the rent owed plus interest penalties of 20% per day on the outstanding
amounts.

d. Deposit of US$150 is to be paid before the lease commencement.

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e. The deposit will be used to pay for damages that have not been fixed by the
Tenant or to go towards unpaid rent. If the deposit is not enough to cover the
outstanding amounts the Tenant will be liable for the balance. The deposit is returned at
the end of the lease; less outstanding charges; if any.

f. Shared costs
Common costs will be shared with other tenants as determined by the Owner. The
shared costs will be waivered for the first 12 months. To support the Tenant to establish
the business, the Owner waives all the monthly shared costs for the first 12 months
which include:
• The complex security guard and other shared security measures (US$35)
• Upkeep of common areas such as signage, outside lights, pavement, grass cutting
and clearing rain/storm water drains. (US$5)
• Electricity from solar panels (US$10)
• If and when a borehole or well is developed a charge for water will be
introduced.

The shared costs are reviewed every 12 months.

4. Condition of Premises
a. The Tenant must ensure that care is taken to avoid damaging the rented Premises
and common areas.

b. The Tenant must keep the rented Premises clean and in good condition during
the period of agreement.

c. The Tennant must notify the Owner of any pre-existing defects within 2 days of
the start of the lease. The Tenant acknowledges that on taking possession of the
Premises, anything not included in the pre-existing defects report submitted by the
Tenant is deemed to be clean, in good order and repair.

d. The Tenant must give notice to the Owner of any new damage to the premises as
soon as practicable.

e. The tenant must arrange and pay for the costs of fixing damage or loss that
occurs during the lease. The Tenant must fix the problem immediately or within a given
number of days set by the Owner depending on the Owner’s assessment of the urgency
of the problem.

5. Use of Premises
a. The Tenant leases the Premises for the following uses: Motor spares. The Premises
shall be used by the Tenant only for COMMERCIAL purposes and only for the
activities that the Owner has given written consent.

b. The Owner does not warrant that the Premises are suitable for the Tenant's purposes.

c. The Tenant must not use or allow the premises to be used for any illegal purpose.

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d. The Tenant must not use or allow the premises to be used in such a manner as to
cause a nuisance or cause an interference with the reasonable peace and comfort of
any occupier of the complex or its neighbours.

e. The Tenant shall operate as a standalone business entity with its own business name
and separate from the Owner. It is the responsibility of the Tenant to meet relevant
regulations and to have the required licences to operate.

6. Alterations, fixtures and fittings

a. The Tenant shall not make any alterations or additions to the Premises (inside or
outside) without the prior written consent of the Owner.

b. To restore the rental premises to its initial state, at the end of the lease, the Tenant
may be asked to arrange and pay for removing some or all alterations; including the
alterations that the Owner consented to. The alterations to be removed will be
determined by the Owner. The Owner may choose to keep the existing alterations or
developments in place without compensating the Tenant for the changes; in this case the
tenant will forfeit compensation for the changes.

c. The Tenant is responsible for marketing their own business. The Tenant must
request permission from the Owner before putting new signage (promotion materials)
outside their rented shop (Premises). The Owner reserves the right to refuse any
signage, writing, images or any promotional materials that it considers inconsistent with
the branding and strategy of the complex.

d. Note that seven (7) display shelves will be left for the Tenant to use free of charge
until the Owner gives notice for their collection.

7. Non-liability of Owner for defects

a. The Owner shall not be liable to the Tenant for any injury, loss or damage of any
description which the Tenant, or any employee, agent, or visitor of the Tenant, may
sustain at the Premises, even if sustained by reason of any defect in the Premises or for
any act done or neglect on the part of the Owner or of any of the Owner's employees or
agents.

8. Force Majeure
a. The Owner will not be liable for any failure or delay in performing an obligation
under this Agreement that is due to, but not limited to, any of the following causes
(which causes are hereinafter referred to as “Force Majeure”), to the extent beyond its
reasonable control: acts of God, accident, fire, explosion, riots, war, terrorist act, civil
commotion, governmental acts or omissions and changes in laws or regulations.

b. For the avoidance of doubt, Force Majeure shall not include the Tenant’s (i)
financial distress nor the inability of the Tenant to make a profit or avoid a financial loss,
(ii) changes in market prices or conditions, or (iii) the Tenant's financial inability to
perform its obligations under this Agreement.

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9. Breach
a. If:
i. if initial rent plus deposit is not paid 2 days before the lease commencement date;
or
ii. subsequent rent is not paid by the 4th of the month; or
iii. the Tenant commits any other breach or fails to observe or perform any of the
other terms and conditions of this Agreement and remains in default for a period
of ten (10) days after the giving of notice in writing by the Owner drawing
attention to the breach or omission and requiring it to be remedied;

then the Owner may immediately terminate this Lease and re-enter upon and take
possession of the Premises, without prejudice to any claim for damages which the
Owner may have against the Tenant for any breach of the Lease by the Tenant. For
instance, the Tenant must pay rent for the remainder of the fixed lease period, or for 3
months, whichever is greater.

b. If the Tenant is not in breach of the Agreement and if the Owner impinges on the
Tenant’s peaceful enjoyment of the Premises by personally using the Premises or
requests that another third party use part of the Premises, the Tenant is entitled to refuse
in the first place. If the Owner fails to accept the refusal, the Tenant may then exercise
the right to Terminate the contract in this particular case. Note that inspection of the
Premises under clause 11 is permitted.

10. Termination by notice

a. After the initial fixed term period and if the Tenant is not in breach, the Owner
may terminate this Agreement by giving the Tenant written notice of three (3) months.

b. If the Tenant terminates the Agreement during the fixed term period of the lease,
the Tenant must pay rent for the remainder of the fixed lease period, or for three (3)
months, whichever is greater.

c. After the fixed period of the lease, the Tenant may terminate this Agreement by
giving the Owner written notice of three (3) months.

d. After the fixed term period, if the Tenant fails to give the required 3 months’
notice, the Owner can claim rent for the 3 months less the notice period provided; if any.

11. Inspection of the Premises

a. The Owner, or any authorised agent, may enter upon the Premises at all
reasonable times for the purpose of inspecting the Premises and ensuring compliance
with the terms and conditions of this Lease.

b. The Owner, or any authorised agent, can accompany a prospective Tenant at all
reasonable times to inspect the Premises.

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12. Cession and Assignment
a. The Tenant may not sublet the whole or any part of the Premises, nor cede or assign
any of the Tenant’s rights in terms of this Lease, except with the prior written consent of
the Owner.

13. Whole agreement and variation of the Lease

a. This Agreement is the whole agreement between the Owner and the Tenant and there
have been no warranties, guarantees, representations or conditions precedent save as are
specifically recorded. No alterations or variations of this Lease shall be of any effect
unless in writing and signed by both Parties.

14. Waiver of rights

a. The rights of the Parties under this Lease shall not in any way be prejudiced by any
extension of time or other indulgences which may be granted by one Party to the other
in respect of the performance of any of the other Party's obligations in terms of the
Lease.

15. Rights
a. Any and all names, trademarks and any copyrights belonging to Mukutano
Investments (Private) Limited (Company) will remain the Owner’s sole intellectual
property at all times.

b. The Tenant will have limited and non-exclusive rights for use of said names,
trademarks and copyrights for the sole purposes of advertising and promotion. Any
misuse of the Company’s names, trademarks or copyrights may result in the
termination of this Agreement and/or legal action.

c. Upon the termination of the Agreement, the Tenant will give up all rights to use
any of the Owner’s intellectual property such as names, logos and signage.

16. Confidentiality
All confidential information exchanged between the Owner and Tenant shall be labelled
and clearly marked as confidential.

17. Notices
a. The Tenant chooses domicilium citandi et executandi for all purposes under this Lease at
the following address, where all legal notices and legal processes in relation to this
Agreement may be effectively delivered and served:

i. Tenant physical address: ………………………………………………………..

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18. Consent to electronic service
a. The Tenant:
Consents to the electronic service of notices and other Insert email address
documents at this email address: below to consent:
Email address:

b. The Owner:

Consents to the electronic service of notices and other Insert email address
documents at this email address: below to consent:
Email address: jmugodo@gmail.com

c. Change of contact details

The Tenant and the Owner must immediately give notice in writing to the other party if
the email address for electronic service or the domicilium citandi et executandi changes.

19. Severability and Jurisdiction

Any terms found unenforceable will have the option to be replaced as deemed necessary
by the Owner. The exclusion of the unenforceable terms will in no way affect any other
portions of this Agreement.

20. Acceptance
By signing below, both parties agree to enter into, uphold, and enforce the entire terms
of this Agreement.

Owner signature: …………..…………….. Date: ……………………..

Tenant signature: …………..…………….. Date: ……………………..

Tenant’s Witness:

Name: Sign:_______________ Date: ……………………..

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