(REV. SEP. ‘03) NIGHTSAVE RURAL ELECTRICITY SUPPLY AGREEMENT The Parties to this Agreement are- ESKOM HOLDINGS LIMITED (Reg No 2002/015527/06) a Company incorporated in terms of the Company Laws of the Republic of South Africa (‘ESKOM’) herein represented by CLIVE ZWANE in his/her/their capacity/capacities as REGIONAL PRICING MANAGER (SOUTHERN REGION) -AND- SENQU MUNICIPALITY, herein represented by MR MXOLISI YAWA in his/her/their capacity/capacities as MUNICIPAL MANAGER 1. ESKOM agrees to supply to the CUSTOMER and the CUSTOMER agrees to take from ESKOM all the electricity required by the CUSTOMER for its ‘electrical installation’ situated at MUNICIPALITY, TOWN OFFICE, STERKSPRUIT, on the terms and conditions set out in this Agreement including the following annexures which shall be deemed to be incorporated herein and form an indivisible part of this Agreement. Annexure A – Standard Conditions of Supply for Large Users Annexure B – Price List 2. This Agreement is further subject to the provisions of the Electricity Act, 1987 (Act No 41 of 1987) (‘the Act’) and the Rules and Regulations issued thereunder, and of ESKOM’s Distribution Licence and Schedule of Standard Prices, as amended or re-enacted from time to time and any other applicable laws. 3. The prices payable by the CUSTOMER for electricity supplied or made available under this Agreement, shall be NIGHTSAVE RURAL prices as prescribed in Annexure B, and is subject to ESKOM’s right to adjust the prices it charges for electricity supplied in accordance with the provisions of the Act and with the approval of the National Electricity Regulator. 4. The CUSTOMER shall pay to ESKOM in respect of the capital expenditure and costs incurred and/or to be incurred by ESKOM in making this supply of electricity available to the CUSTOMER the following amounts: 4(a) 4(b) 4(c) Capital expenditure: Connection fee /conversion fee (i) Standard Connection Charge (ii) Cash Payment (iii) Shared Network Charge Security for electricity accounts Irrecoverable Cost Guarantee (‘the ICG’) R0.00 R438.60 + VAT@14% = R500.00 R0.00 R0.00 R0.00 R0.00 In the event of the supply to the installation being discontinued, the CUSTOMER shall pay to ESKOM a contribution towards the irrecoverable expenditure and costs which ESKOM would incur should it be necessary for ESKOM to dismantle its equipment on termination of the supply. SC0001PF © ESKOM HOLDINGS LIMITED P 1 of2 As security for the due payment by the CUSTOMER of the said contribution, the CUSTOMER shall, upon signature of this Agreement, deposit with ESKOM the amount of R0.00 (‘the ICG’) or furnish ESKOM with a guarantee acceptable to ESKOM for the aforesaid amount, for payment on demand by ESKOM of the said ‘ICG’ or the reduced amount thereof. Subject to the CUSTOMER meeting its obligations under this Agreement, ‘the ICG’ shall be reduced for and in respect of each completed year during which this Agreement remains in force from and including the fourth year until and including the thirteenth year, calculated from the date electricity is first supplied to the CUSTOMER in terms hereof, by 1/10th (one-tenth) of the ICG. 5. The technical details of the electricity supply to the CUSTOMER at the date of signing this Agreement are as follows: Notified Maximum Demand Supply type Declared voltage 1500 kVA THREE PHASE 22 000 VOLTS (TWENTY TWO THOUSAND VOLTS) 6. The electricity supplied by ESKOM shall be delivered to the CUSTOMER at Point of Supply OBS48 via a 1500 kVA Transformer. 7. This Agreement is further subject to the condition that in the event of the CUSTOMER requiring ESKOM to provide an increased supply, such variation in the supply shall be subject to such terms and conditions as are agreed between the Parties and confirmed in writing. 8. The CUSTOMER shall [or has provided and shall continue for the duration of this Agreement] to provide and maintain in good order and at its expense a site to be mutually agreed upon as accommodation for ESKOM’s equipment. 9. Neither Party hereto may cede and delegate any of its rights and obligations (including liabilities) under this Agreement to any person without the written consent of the other. 10. Notwithstanding the above, ESKOM may on written notice to the other Party cede and delegate its rights and obligations under this Agreement to any of its subsidiaries or any of its present divisions as a result of the restructuring of the Electricity Supply Industry (ESI) and the Electricity Distribution Industry (EDI). 11. The CUSTOMER shall not supply any electricity taken from ESKOM under the electricity supply agreement to any third Party without the written consent of ESKOM. 12. For the purposes of this Agreement the CUSTOMER’s domicilium citandi et executandi shall be: TOWN OFFICE STERKSPRUIT and ESKOM’s domicilium citandi et executandi shall be: Megawatt Park Maxwell Drive Sunninghill Ext. 3 2199 SANDTON This Agreement shall come into force on the date of signing hereof and shall remain in force subject to 3 (three) months’ written notice of termination by either party, provided that such notice may not be given before a period of 60 (sixty) months, reckoned from the date when the supply is made available by ESKOM in terms of this Agreement, has elapsed. SIGNED BY CUSTOMER SIGNED BY ESKOM AS WITNESS: AS WITNESS: PLACE: SC0001PF DATE: PLACE: © ESKOM HOLDINGS LIMITED DATE: P 2 of2