MEMORANDUM OFAGREEMENTENTEREDI

NTOBYANDBETWEEN

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.

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OF

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.

And

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OF

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I
NRESPECTOFTHEJOI
NTVENTUREOPERATI
ONSON…………………………………………

1
WHEREAS
1.Thel andhol
deri
stheregi
ster
ed and l
awf
uloccupantofacer
tai
n pi
eceof
propert
yknownas…………………………………..

2.Theparti
eshavi
ngagr eedt
oassociat
et oget
heri
naJoi
ntVentur
e(JV)wit
hthe
mainaim ofconduct
ingafarmingbusinesson……….
.Hect
ares,her
einagr
eeto
const
it
utethemsel
vesasaJointVentur
e.
3.Anyr efer
encet o(InvestorName)………………i nthisagreementshal li
ncludeany
approvedmanagercont r
actedby(I
nv est
orname) …………………… t oimplementand
faci
li
tatecompliancewi ththisagreementtot heextentthatsuchmanageri s
permitt
ed to undertaket heagri
cultur
alacti
vi
tiesenvisaged pur
suantt othi
s
agreement.
4.Bot
hpart
iesagr
eethatallannexur
esmentionedi
nthi
sagr
eementwi
l
lbeadded
tot
heagr
eementandsignedbybot hpar
ti
es.
I
TISHEREBYAGREEDANDRECORDEDASFOLLOWS;
1.JOI
NTVENTURECAPI
TALCONTRI
BUTI
ONS:
a.The par ti
es her
eby associatein a JointVent uref ort he purposes of
conductingaf ar
mi ngbusi
nessinvolvedinthegrowingofcr ops,horti
cult
ure
orliv
estock.Thepar ti
esshallmaket hecapit
alcontri
butionsrequir
edbyt he
JVandf orallsubsequentproj
ects,andthei
rcapitalamountshal lbecredi
ted
wit
ht heappropriateval
ueofsuch cont r
ibut
ionsi n accordancewi t
ht he
fol
lowing:
b.TheLandholder’
scont
ribut
iont otheJV shallbetheuseofl andforthe
purposesof……………………………( stat
efarmingacti
vi
ti
es),(
AnnexureA:Mapof
theland,
Plotandar
eathati
sav ail
abl
e).Theworkshopsandotherstr
uct
ures
ontheFarm maybeuti
l
izedbyt heJV.
c.TheLandhol deragreesNOTt oenterintoaJVofanyoft hisport
ionofl and
withanyot herpart
yforthedurat
ionofthi
sAgr eement.I
tisrecor
dedt hatthe
areaoflandt obeut i
li
zedby………………f orpurposesofthi
sJVi sdemar cated
onthemapat tachedasAnnexureA.TheLandhol derhastheri
ghttofarmt he
areaexcludedf r
om thi
sjoi
ntventur
eonhi sownaccount.
d.The Landhol
derf ur
thergr
ant
sthe JV exclusi
ver
ight
stot
he i
rr
igat
ion
i
nfr
astruct
ureassoci
atedwi
tht
hei
dent
if
iedland.
e.The Landhol
derf ur
thergrantsthe JV t
he rightto use exi
sti
ng st
aff
accommodationandt obuil
daccommodati
onf ortheemploy
eesoft heJV,
andanyotherfi
xedstr
uctur
esthatmaybeofusetotheJV.
f
. TheLandhol
derf
urt
hergrantstheJVaccesst
ot hewaterright
senj
oyedby
…….
……andinsodoingenabl
et heJVtoproducei
rr
igatedcrops.
g.TheLandhol
dergr
ant
stheJVper
missi
ont
ocl
eart
reesandt
imberasar
abl
e
2
 l
andi sopenedupandt heuseofthewoodforcur
ingf
uel
.Bot
hpar
ti
eswi
l
l
consultont
hisaspectbef
oreanycl
ear
ingi
sdone.
h.Bothparti
esagreethatther
eshallbeaseason’
snoti
ce,gi
veninwrit
ingfor
thecancell
ati
onofthisagreementandthatconsi
der
ati
onwi l
lbegivenfor
cropsal
readyinthegroundandrecov
eryofanyandal
lexpensesi
ncurredby
………….
i
. …………. .cont
ri
buti
on tot he JV wil
lbe the prov
isi
on ofmanagementi n
consult
ati
on wi
tht he Landhol
derand sourci
ng the f
inanci
alcont
ri
but
ion
requi
redfort
hefar
mi ngoperati
on.
j
..………. …...wil
lsuppl
yalltheequipmentr
equi
redfort
hesuccessoftheJV
prov
idedt hatthefi
nanci
ershal
lnotuseanyequi
pmentorasset
sal
readyat
thefarm ascoll
ater
alt
oraisef
unding.
k.TheJVshal
ladher
etoandut
il
izegoodagr
icul
tur
alpr
act
ices(
GAP)
.
l
. TheJV shal lnotbel iableforhistori
caldebt sthatt hefarm mayhav eto
ZETDC,LandTax,ZI MRA,l abourwagesandgr atui
ti
es,NSSA,ZI NWA and
banks. Thesedebt sr emaint heresponsibili
tyoft heLandhol der,unless
declaredandi nhi s/herSol eandunf ett
ereddi scr
etionpaidforby…………. .and
deduct edfrom t hesum duet ot heLandhol derbyt heJV.TheLandhol der
herebydi scloses t hese l i
abil
i
ties and debts and t hese are discl
osed in
Annexur eBat tachedher etoandmar kedB. Repay mentpl answi thallthe
credit
or sshallbedi sclosed.TheLandhol dershallpayutil
i
tiesbi
llsduringthe
durati
onoft heJVi fnotexpr esslyassociatedwi t
htheJV.
m.TheLandholderisful
l
yresponsi
bleforhisowntaxaff
air
s(ZI
MRA). Bot
h
par
ti
esshall
bet axcompl
i
antwithrespectt
othel
awsofZi
mbabwe.
n.Iti
sherebyagreedandr ecor
dedasaconditi
onpr ecedentt
hatt
hisagr eement
i
ssubjecttothecondit
ionalful
fi
lmentoft
hef ol
lowing:t
heappr
ov al
,inwrit
ing
tothecontentofthi
sagr eementbytheMinisterofLands,Agr
icult
ure,Water
andRuralResett
lement.
o.Bot
hpar
ti
eswi
l
lendeav
ourt
opr
otectt
hei
nvest
ment
sint
heJV.
2. DURATI
ON
Theoperat
ionofthebusi
nessoft
heJVshallformal
lycommenceon…………….
and shal lconti
nueforaperi
odof……….ter
minati
ngon………….Pr ovi
dedther
e isno
breach,t
heparti
esmayr enewtheagr
eementforafurt
her………….onthesameter
ms
andconditi
ons.
3. FARMI
NGOPERATI
ONS:
3.
1 TheJVpar t
ner
sshal
l,
onorbef
or he1stofSept
et embereachy
ear
,di
scuss
thei
ntendedcr
oppi
ngprogr
ammefort
henext12months.
3.
2 Thepart
ieswil
lagr
eeonandpr ov
idethebusi
nessandproduct
ionpl
ans
fort
hedurat
ionoft
hecont
ractt
obeprovi
dedasAnnexur
eC.

3
 Anyv ar
iat
iont
obesubmitt
edassoonastheyhaveamat
eri
ali
mpact
,or
resul
tinmorethan20%v
ari
ati
oni
nthebusi
nesspl
an.
3.
3 Thepart
iesaretosubmitanannualretur
nt ot
heMini
str
y’sMonit
oringand
Eval
uati
on Unit
,by31 Augusteach y earforsummercr ops and 30
Novembereachy earf
orwint
ercrops.Fail
uret
osubmitaret
urnwillatt
ract
penal
ti
esincl
udingwit
hdrawalofapprovaloft
heJV.
3.
4 TheMi ni
stry
’sM andEuni toranyotherappoint
edof f
ici
alsshallbe
all
owedreasonabl
eaccessf
ori
nspect
ionforcompli
ancebythepart
iesto
thejoi
ntvent
ure.
3.
5 TheJVpar
tner
sshallensurethatal
lannuall
easerent
alsareuptodate.
Fai
l
uret
opaytheser
entalsshall
beamat er
ial
breachofthi
sagreement
.
4. MANAGEMENT
TheJVwi l
lai
mt ooperatei
nt hespiri
tofco-
operat
ionandunder st
anding.Whil
st
…………i s thefinanci
alpartnerintheJV,bothparti
esagr eethattheJVwi l
l
employmanager sto overseet hemanagementoff arming operat
ions. The
Landholdershallnotundul ycompet eforlabouratt heexpenseoft heJV’s
operat
ionsandshal lendeavourt ocreat
eapr oduct
ion-ori
entedandconducive
workenv i
ronment.TheJVwi l
laimtooperat
eunderaspi ri
tofgoodwi l
l.
5. OPERATI
NGCOSTS
Al
lcostsassociatedwiththefarmingoperat
ionshallbefortheaccountoft
heJV,
i
ncl
udinglandt axtax/counci
lrates,ZETDC,ZINWAf eesforthedurati
onoft
he
JVperi
od.ZEDTCbi ll
sfortheLandholder’
sprivat
ebusi nessshal
lbepaidbyt
he
l
andholder
.Hi stori
cbill
sshal
l betotheLandholder’
saccount.
6. REPAI
RSANDMAI
NTENANCE
…………………..shal
lunder
takeall
repai
rsandmaint
enanceoft
hefarmfaci
l
iti
es
bel
ongingt
oit,t
hatisrequir
edf ortheoperat
ionoftheJVe.g.bor
ehol
e,barnsand
sheds.

7. SHARI
NGOFI
NCOME
a. …………………………%ofGr
ossv
aluef
rom pr
oduct
ionwi
l
lbet
heLandhol
der
s’
shar
eofi
ncome..
b. Anydebt
sorl
i
abi
l
iti
est
obedecl
aredbyt
heLandhol
der
,asi
nAnnexur
eB.
8. I
RRI
GATI
ONEQUI
PMENT,
FARMI
NGMACHI
NERY
a. Al
lmoveabl
emachinery
,plantandequi
pmentbroughti
ntobusi
nessby
………..………….shal
lremaint
hesol
eandexcl
usivepr
oper
tyof
…………..
b. The Landhol
derwillhav
et he ri
ghtoff ir
str ef
usalto purchase the
equipment prov
idedheispreparedtoofferfairmarketrel
atedprices
thattakei
nto consi
derat
iondepreci
ati
onandwearandt ear.
4
 c. TheLandhol
derhasnomov
eabl
easset
sbei
ngusedi
ntheJV.
9. ACCOUNTS
TheFinancialyearoftheJVwi llbe1stAugustto31Sept ember. TheJVmay
engageAudi t
orsfrom ar eput
ablef i
rm ofchart
eredaccount
ants.TheJVwil
l
keeprecordsofallproducti
onandsal esoffar
m produce.Theserecor
dswi
l
lbe
ableavai
labl
etobot hpart
nersforinspect
ions.
10 BREACH
Ifei t
herPar ty should commi ta br each ofany oft he provi
sions oft he
Memor andum ofAgr eementandr emai nindef aul
tforaper i
odof30day saf t
er
receiptofwr i
ttennot i
cefrom t heotherpar t
ycalli
ngoni ttorecti
fythebr each
thent heaggrievedpar t
yshallhav ether i
ght( butshallnotbeobl i
ged)tocancel
thi
sagr eementbywr itt
ennoticet othatef f ecttothedef aul
tingpartyandcl ai
m
anydamagessuf f
ered. Thecancel lati
onoft hi
sagr eementshal lbewi thout
prejudicetoallotherri
ghtswhi cht heaggr ievedpar t
ymayhav eatlaw,i
ncluding
ther i
ghtt orecoverdamagesf r om thedef ault
ingPar t
yort oseekani nterdi
ct
againsti t
.
11 LEGALSTATUS
Theagreementshal
lbegover
nedby,const
ruedandint
erpr
etedinaccordance
wit
hthe l
awsofZimbabwe.Fortheavoi
danceofdoubt,t
hisagreementshal
lnot
beconst
ruedas const it
uti
nga l
easeoragencyagr
eement.
12 GENERAL
a. Thi
sagr
eementconsti
tutesthesol
erecor
doftheunder
standi
ngbet
ween
t
he Par
ti
esinregar
dt othesubj
ectmatt
ert
hereof
.
b.Nei
therPart
yshallbeboundbyanyrepresent
ati
on,war
rant
y,under
taki
ng,
promisenotrecor
dedi
nthi
sagreement.
c.Noaddit
ionto,var
iat
ionorconsensualcancell
ati
onofthi
sMemorandum
shal
l beofanyforceoref f
ectunl
essaffectedinwri
ti
ngandsi
gnedbyor
onbehal
fof all
thePar t
ies.
d.Anyi ndul
gence,whi
chanyPar t
ymayshow anyot herinter
msofor
pursuantto the pr
ovi
sions contai
ned i
nthe agreement
,shallnot
consti
tuteawai v
erofanyof the ri
ght
softhe part
ywhich gr
ant
ed
suchindulgence.
e.Theprovisi
onsoft
hisagreementshal lbebindi
ngupont hesuccessor
s-i
n-
ti
tl
e- andassi
gnsofthePar t
ies.Accor di
ngly
,ther
ightsandobl i
gat
ions
ofeacharisi
ng par
tyoutoft hi
sAgr eementshalldevolv
euponand
bi
nditslegalandpersonal represent
at i
ve/s successor s-
in-
tit
le and
permit
tedassigns.
f
.Sav
easot
her
wiseexpresslyprovi
dedinthisAgr
eement,
thi
sAgreementi
s
personaltotheparti
esandt hepar
ti
esshal
lnotbeenti
tl
edt
o
cede,
assi
gn, tr
ansf erorot
herwise makeoveranyofthei
r
5
ri
ghtsordelegat
eanyofit
s obl
i
gat
ionsher
eunderwithoutt
he
pri
orwrit
tenconsentoft
heot
herPar
ti
es, whichconsentshall
notbe
unreasonablywit
hhel
d

13. CONFI
DENTI
ALI
TY
ThePar t
iesshallkeepconfi
dentialandshal lnotdiscloset oanyper son,except
as per mit
tedinwr it
ingbytheother,norshallanypar tyusef ori t
sownbenef itany
andall i
nfor
mat i
on, mat
eri
al anddat a,whetherofabusi ness,t echnical,
fi
nancial
,operati
onal, admini
str
ate,mar keti
ngorot hernat urei nr espectoft he
otherpart
yori t
soperations whichisdisclosedt oi
tbyt heother party orany
thi
rdpartyorithasacqui r
ed (whetherbeforeoraf t
erthedat eoft hisagr eement )in
connecti
onwi thorinthecourse of this agr eement ( coll
ectively referred t o as
“Confi
dential
Infor
mat i
on”)

14. ARBITRATION
Intheev entofanydi sputeordi ffer
encear isi
ngbet weent hepar t
ies,heret o
rel
ati
ng to orar isi
ng outoft his Agreement ,including the i
mplement at
ion,
executi
on,i nt
erpret
ati
on,r ecti
fi
cation,v al
idi
ty,enf orceabil
it
y,termination or
cancell
ati
onoft hisAgreement,thePar t
ieswi l
lfort
hwi t
hmeetanduset heirbest
endeavorstoat t
emptt osettl
esuchdi sputeordi f
ference,Shoul dthePartiesf ai
l
toreachanagr eement,they agreet oconsul tandi nvolv
et heMi nistryof
Lands,Agricul
ture,WaterandRur alReset t
lementinanat temptt oresolveany
i
ssueswi f
tlyandami cably.

Fall
ingsuchsett
lementwit
hinaper i
odof30( t
hir
ty)days,pri
ort
otheinst
it
uti
on
ofanyotherform ofpr
oceedi
ngs,thesai
ddi sput
eordif
ferenceshal
lbedeal
twit
hby
arbi
tr
ati
onintermsoftheArbi
tr
ati
onAct .

15. COSTS
Eachpart
yshallbearit
sownl egalcostsandexpensesassoci
atedwi
tht
he
negot
iat
ion,set
ti
ngandexecut
ionoft
hisAgreement
.

Dat
edat
………………………………….
.t
his………………….
dayof
…………….
2019

WI
TNESSES

1.……………………………………………………………………

2.………………………………………………………………….
.

6
 …………………………………………………

WI
TNESSES
1.……………………………………………………………………

2.………………………………………………………………….
.

………………………………………………………
Approv
edandsignedbythePermanentSecret
aryf
orandonbehal
foft
heMi
nist
erof
Lands,
Agr
icul
tur
e,WaterandRuralReset
tl
ement

Joi
ntVent
ureNumber
: …………………………………………….
.
Far
m Name: ………………………………………………
Al
locat
edMoni
tor
ingandEv
aluat
ionOf
fi
cer
: ……………….
.…………………………….
.