NEWS DETAILS

HEADS OF AGREEMENT

This signed Heads of Agreement is subject to the ratification of the HTHOA members at the forthcoming HTHOA AGM

1. PARTIES

• The Harbour Town Homeowners Association NPC (the ” HTHOA”);

1. 2. Pierre Eugene de Villiers (“De Villiers’);

• Christian Anton Roux (“Roux”);

• Marc Hosiosky (“Hosiosky’);

• Michael Gordon Russell (“Russell’J;

• Fire Ring Trading 15 (Pty) Ltd (“FRT’);

• Eugene Nestor Joannides (“Joannides’);

• Rodney Adrian Love (“Love”); and

1.9.                       Vaalmarina Boatlockers’ Body Corporate (“VBBC’).

Hereinafter collectively referred to as “the Parties”

2. STATUS OF HEADS OF AGREEMENT

• This agreement serves as a Heads of Agreement between the Parties hereto. It is contemplated by the Parties that within 30 (thirty) days of the conclusion of these Heads of agreement, a more comprehensive and detailed agreement will be formulated and executed by Parties recording the terms that are set out in these Heads of

• Subject to the approval of the members of the HTHOA and the VBBC at the Annual General Meetings of the HTHOA and the VBBC to be held on 5 February 2022 (“the Effective Date”), these Heads of Agreement will serve as a fully binding and operational document unless and until it is replace by a superseding agreement which has been duly executed by the Parties here

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3. INTRODUCTION

• The Parties have engaged in a long series of disputes that have endured over many years and which has spread into numerous litigation matters in numerous

• On 8 December 2014 an agreement (“the December 2014 Agreement’) was concluded between some of the Parties hereto, a copy of which is attached hereto as Annexure “A”.

• . An application  in  the  Johannesburg  High  Court  under  case number 40976/2016 by the HTHOA against FRT and Russell, and in terms whereof an order was granted by Judge Adams against FRT and Russell on 8 December 2017 (“the Judge Adams Order’), a copy of which is attached hereto as Annexure “B”.

• The remaining litigation between the parties includes the following:

• An application in the Pretoria High Court under case number 64468/2018, by the HTHOA, Roux, De Villiers and Hosiosky against FRT, Russell, Love and Joannides and in terms whereof Madam Justice Mngqibisa-Thusi granted an interim order in favour of the HTHOA on 25 September 2018 (“the Judge Mngqibisa-Thusi Order’) , a copy of which is attached hereto as Annexure “C” and the relief sought in Part B of the same pending application;

• A counterapplication in the Pretoria High Court by FRT and Russell against the HTHOA under case number 64468/2018, which is pending;

• An application in the Johannesburg High Court under case number 17910/2019 by the HTHOA and the Vaalmarina Boatlockers Body Corporate against FRT, for the liquidation of FRT, which is still pending;

• Actions in the Johannesburg High Court under case numbers 26264/2017 and 14497/2020 by the HTHOA (represented by Rooseboom Attorneys) against FRT for the recovery of levies, which have been defended and are still pending (”the FRT levy cases”);

• An action in the Johannesburg High Court under case number 44629/2020, by FRT against the HTHOA, Roux, De Villiers and Hosiosky for payment of

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various amounts including damages, interest and legal costs, which have been defended and are still pending; and

• An application before the Community Schemes Ombud Service (“CSOS”) under reference number CSOS001395/GP/20 in terms whereof CSOS granted an order against the HTHOA in favour of FRT (“the CSOS Order’) and in respect of which the HTHOA has served a notice of

(hereinafter collectively referred to as “the Litigation Matters”)

3.5.             The Parties wish to record the terms of a settlement agreement in relation to the Litigation Matters and in relation to further aspects pertaining to the administration of the HTHOA.

4. CESSATION OF THE LITIGATION MATTERS

• With the exception of the FRT levy cases and any case by the HTHOA against any signatory hereto for the collection of levies due to the HTHOA, subject to the proviso in terms of clause 4.3 herein, and except as specifically provided herein, any and all the Litigation Matters referred to in clause 3.4 above, shall be ceased and withdrawn by the Parties thereto within five days of the Effective Date of these Heads of Agreement, and each party thereto shall pay their own costs.

• With the exception of any case by the HTHOA or FRT against any signatory hereto for the collection of levies due to the HTHOA or FRT as referred to in 1, none of the Parties hereto shall have any further right of action of any nature whatsoever pertaining to any matter that is in any way related to any aspect of the affairs of the HTHOA, its members, the administration of the Estate, the directorship thereof, the MOI of the HTHOA or any other aspect related or pertaining to the HTHOA arising from any cause whatsoever, whether or not such facts are known to any of the Parties at the time of the conclusion of this agreement, that relates to events or actions prior to the effective date of this agreement.

• There shall be a moratorium by the Parties on all litigation concerning the collection of levies due until such time as the new board of the HTHOA, as contemplated herein, has had the opportunity to assess the position and decided on the necessary appropriate action to be taken with regard to the

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including inter alia any set offs. The fundamental condition of equal treatment of all debtors as stipulated in clause 8 herein shall be strictly adhered to.

5. ADHERENCE

• The Parties agree to implement and adhere to all aspects of the:

• December 2014 Agreement, save to record that Erf 1034 (Martha’s Vineyard) was included as part of the common property in Annexure “A” to the December 2014 Agreement, but it is agreed that FRT is not obliged to transfer that erf to the HTHOA;

• The Judge Adams Order; and

• The MOI and authority matrix of the

6. VBBC LEVY CLAIMS

• The terms and conditions as set out in clause 8 herein will apply to substantiated and proven outstanding VBBC levy claims. Set offs are to be applied for claims in those instances where there are valid and substantiated counter

7. THE CSOS ORDER

• FRT and Russell hereby abandons the CSOS Order,

• The HTHOA hereby abandons its appeal against the CSOS

8. LEVY COLLECTION MATTERS

The new board of the HTHOA after the Annual General Meeting to be held on 5 February 2022 shall determine a levy debtor collection policy and all levy debtors shall be treated on a pari passu basis as far as possible by the HTHOA going forward. The FRT levy

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of the HTHOA for the collection of levies due to the HTHOA in any and all actions instituted by the HTHOA in respect of the collection of any and all outstanding levies which are due to the HTHOA shall be continued to the fullest extent for the purposes of making a recovery of outstanding levies due to the HTHOA or reaching a resolution thereof of terms the levy debtor collection policy as determined by the new board.

9. RESIGNATION and APPOINTMENT of DIRECTORS

• All the current elected directors of the HTHOA viz. Pierre De Villiers, Lucien Chauchard and Bradley Lapin shall resign at the AGM to be held on 5 February 2022 or any postponement or adjournment thereof Likewise, the following developer appointed directors, viz. Mike Russell, Rodney Love and Eugene Joannides shall, if they have not already done so, immediately resign from the board of the

• The members of the HTHOA shall at the aforesaid AGM elect three (3) new member­ elected directors in terms of the MOI. FRT shall in tum be entitled to appoint its own three nominee directors by notice to the Board of the HTHOA, who are eligible to act as directors in terms of the Companies Act and as contemplated in the For clarification purposes, it is acknowledged that the developer appointed directors do not require the prior approval of the existing board, except to the extent that the balance of the board may in terms of the MOI oppose such appointment provided they have just and reasonable cause. As a courtesy, the developer agrees to advise the HTHOA board in writing, who it wishes to appoint as a director. The HTHOA board shall in turn advise the developer within 7 days whether such person is not in terms of clause 23.1.1 of the MOI “reasonably acceptable to the balance of the board” stating fully its reasons.

• All the persons referred to in clause 9.1 including Anton Roux and Marc Hosiosky are precluded from acting as directors to the HTHOA for 12 months from the Effective Date

FINANCIAL MATTERS

Historically two member elected board members have jointly released each and every payment from the HTHOA’s bank accounts. The authority matrix requires that at least one of the joint releasers shall be a member elected director. In future one of the three member-elected board members will continue to approve and release each payment jointly with a developer appointed director.