Deed of Hypothec on Movables

COMPANY LETTERHEAD

{{company_name}}

{{company_address}}

Tel: {{phone}}

Email: {{email}}

Website: {{website}}

DEED OF HYPOTHEC ON MOVABLES

Agreement made and entered into by and between:

{{creditor_name}} (Registration Number: {{creditor_registration_number}}), a company duly incorporated and existing under the laws of South Africa, with its registered office at {{creditor_address}} (hereinafter referred to as "the Creditor");

and

{{debtor_name}} (Identity/Registration Number: {{debtor_id_number}}), an adult individual/company duly incorporated and existing under the laws of South Africa, with its residential/registered address at {{debtor_address}} (hereinafter referred to as "the Debtor").

WHEREAS:

A. The Debtor is indebted to the Creditor in the sum of ZAR {{loan_amount}} ({{loan_amount_words}}) (hereinafter referred to as "the Principal Debt"), arising from a loan agreement/credit facility dated {{loan_agreement_date}}.

B. The Debtor has agreed to hypothecate the movable assets described herein as security for the due and proper performance of all obligations arising from the Principal Debt.

C. The parties hereto desire to record the terms and conditions of such hypothecation.

1. DEFINITIONS AND INTERPRETATION

1.1 "Hypothecated Assets" means the movable assets more fully described in Annexure "A" hereto.

1.2 "Principal Debt" means the amount of ZAR {{loan_amount}} together with all interest, costs, charges and expenses which may now or hereafter be owing by the Debtor to the Creditor.

1.3 Any reference to the singular includes the plural and vice versa; any reference to one gender includes the other gender; and any reference to natural persons includes legal persons.

2. HYPOTHECATION

2.1 The Debtor hereby hypothecates, pledges and binds to the Creditor, as security for the due and proper payment of the Principal Debt and all other amounts owing by the Debtor to the Creditor, the Hypothecated Assets.

2.2 This hypothec shall be a general notarial bond over the Hypothecated Assets, without transfer of possession, in accordance with the common law of South Africa.

2.3 The Debtor undertakes to register this Notarial Bond at the Deeds Office within {{registration_days}} days of signing this Deed of Hypothec.

3. DEBTOR'S UNDERTAKINGS

3.1 The Debtor undertakes to keep the Hypothecated Assets in good order and repair and to maintain adequate insurance cover thereon for their full replacement value, noting the Creditor's interest.

3.2 The Debtor shall not alienate, encumber, remove or otherwise deal with the Hypothecated Assets without the prior written consent of the Creditor.

3.3 The Debtor shall permit the Creditor or its authorised representatives to inspect the Hypothecated Assets at all reasonable times.

4. BREACH

4.1 Should the Debtor fail to pay any amount due to the Creditor on the due date thereof, or breach any other term of the Principal Debt agreement or this Deed of Hypothec, and fail to remedy such breach within {{notice_period}} days of written notice by the Creditor, then:

4.1.1 The Principal Debt and all other amounts owing by the Debtor to the Creditor shall immediately become due and payable.

4.1.2 The Creditor shall be entitled, without prejudice to any other rights it may have in law, to take possession of the Hypothecated Assets and to sell them by public auction or private treaty, and to apply the proceeds towards satisfaction of the Principal Debt and costs incurred.

5. DOMICILIUM CITANDI ET EXECUTANDI

5.1 The parties choose their respective addresses as set out in the preamble hereto as their domicilium citandi et executandi for all purposes arising from this Deed of Hypothec.

6. GOVERNING LAW

6.1 This Deed of Hypothec shall be governed by and construed in accordance with the laws of the Republic of South Africa.

7. GENERAL

7.1 This document constitutes the entire agreement between the parties relating to the subject matter hereof and no amendment or variation shall be of any force or effect unless reduced to writing and signed by both parties.

SIGNATURES

SIGNED at {{place_of_signing}} on this {{day_of_signing}} day of {{month_of_signing}} {{year_of_signing}}.

___________________________

Witness Name: {{witness_name_1}}

Witness Signature: {{witness_signature_1}}

___________________________

For: {{creditor_name}}

Duly authorised

___________________________

Witness Name: {{witness_name_2}}

Witness Signature: {{witness_signature_2}}

___________________________

For: {{debtor_name}}

Duly authorised