PAYROLL DEDUCTION AGREEMENT

between

(Hereinafter referred to as "the Employer")

and

THE CONSOLIDATED RETIREMENT FUND FOR LOCAL GOVERNMENT

(Registration number:12/8/32689/2)

WHEREAS:

The rules of the Consolidated Retirement Fund for Local Government (herein referred to as “the Fund”)
enables the Fund to provide Home Loans to qualifying Members in accordance with the Pension Funds
Act 24 of 1956 (“The Act”), other applicable legislation and the policies of the Fund

AND WHEREAS:

In terms of Home Loan Agreements, Members have irrevocably authorised their Employers to deduct
such amounts due to the Fund from their salaries and to make payment of the said amounts directly to
the Fund.

NOW THEREFORE

The parties agree as follows:

1. DEFINITIONS AND INTERPRETATION

1.1. The following terms shall have the meanings assigned to them hereunder and related
expressions will have corresponding meanings:

1.1.1. "Authorisation" means the written authorisation by the Employee, authorising its
Employer to make deductions from his/her salary or wages;

1.1.2. "the Agreement" means this Agreement together with all its annexures, letters,
schedules, addendums and written notices;

1.1.3. "Confidential Information" means any information or data of a confidential,

sensitive or proprietary nature, including but not limited to the terms of this
Agreement, financial information, marketing and business strategies, minutes of
meetings, corporate memoranda, and other information relating to either the
Employer, the Fund, or the Members of the Fund, including without limitation
certain personal information of Employees, the Employer and/or third parties;

1.1.4. "Data" shall mean any data, including but not limited to any personal data as
defined in the Electronic Communications and Transactions Act, 2002, any
member data, private information and/or any other legislation related to the
protection of data, or any information stored, collected, collated, accessed or
processed on behalf of the Fund by the Employer;
 1.1.5. "the Employee(s)" means a person employed by the Employer, who is a member
of the Fund, as defined in the Act;

1.1.6. "the Employer" means ……………………….………………, a participant in the

Fund;

1.1.7. “the Fund” means the CONSOLIDATED RETIREMENT FUND FOR LOCAL
GOVERNMENT with its registered address at CRF Building, 4 Bridal Close, Tyger
Falls, Bellville, 7530;

1.1.8. "Home Loan Agreement(s)" means the Credit Agreements entered into by and
between the Fund and its participating Employees who qualify to receive a pension
backed home loan;

1.1.9. “Member” means an employee of the Employer who has been admitted to
membership of the Fund in accordance with the eligibility requirements set out in
the Fund Rules;

1.1.10. "Repayment Schedule" means the document submitted to the Employer's payroll
officer on a monthly basis, which contains details of all the instalments due to the
Fund by all the Employees of the applicable Municipality.

1.2. In the interpretation of this Agreement, unless the context otherwise requires or indicates:

1.2.1. the words 'dependant', 'member', "officer', 'principal officer', 'pension fund',
'retirement date' and 'rules' shall bear the same meaning in this agreement as
they bear in the Act;

1.2.2. Words signifying the singular or plural shall include the other, any one gender shall
include the other and persons shall include natural and juristic persons;

1.2.3. Any reference to any statutory enactment shall be a reference to such enactment
as at the date of signature and as amended or substituted from time to time;

1.2.4. The headings of clauses are provided for convenience only and shall not be used
to interpret this agreement;

1.2.5. Any reference to “days” shall be construed as calendar days; any reference to
“business day(s)” shall be any day other than a Saturday, Sunday or public
holiday.

2. OBLIGATIONS OF THE EMPLOYER:

Payroll Deductions

2.1. The Employer, upon receiving a notification of approval of the Home Loan from the Fund and
provided that the Employer has obtained an authorisation from the Employee to deduct
(Authorisation), shall record the repayment instalments on its payroll system as set out in the
Repayment Schedule and the Authorisation.

Thereafter, the Employer shall deduct and make payment of the instalments to the Fund as
follows:

2.1.1. on the salary date of each month, the Employer shall effect payment to the Fund
by way of payroll deduction of an amount representing the sum of all the monthly
instalments due by the Employees in terms of the Repayment Schedule.
 The Employer shall ensure that it retains a record of the Authorisation on file.

2.1.2. The Employer irrevocably undertakes and warrants that it shall deduct from the
Employees’ salary/ wages all instalments due by its Employees to the Fund in
terms of their loans and make payments into the following bank account nominated
by the Fund, by way of EFT:

Account Name: Consolidated Retirement Fund for Local Government

Account Number: 62703067365
Branch: RMB RMB Corporate banking – Cape Town
Branch Code: 204-109

2.2. The Fund shall notify the Employer, in writing, if there is a change to its banking details before
the Employer’s next payroll cut-off date.

2.3. The Employer further undertakes and warrants to the Fund that it shall effect ALL the deductions
stipulated in the Repayment Schedule unless there exists an acceptable and valid reason for
non-deduction.

2.4. Valid reasons for non-deduction include but are not limited to insufficient salary paid due to
short time; exhausted maternity leave or sick leave; payments not coinciding with the
instructions set out in the Authorisation, or any other reason that has been accepted by the
Fund in writing.

2.5. In the event that an Employee is no longer employed by the Employer, for any reason, the
Employer shall notify the Fund as soon as it becomes aware of this fact.

2.6. In the event that the Employer fails to make a deduction without an acceptable and valid reason,
any non-deduction shall constitute a breach in terms of paragraph 7 herein.

2.7. The Employer confirms that it shall notify the Fund in writing of its monthly payroll cut-off date.

2.8. Upon receipt of a Repayment Schedule from the Fund, on or before an Employer’s monthly
payroll cut-off date, the Employer shall make the first monthly deduction from the Employee’s
salary in that same month and pay same over to the Fund.

2.9. In the event that the monthly instalments due by any or all of the Employees are increased or
decreased, the Fund shall notify the Employer of such change as soon as is reasonably
practical. The Employer shall be required to pay such increased or decreased instalments to
the Fund in the same month of notification. If notice of the adjusted instalments is only submitted
to the Employer after its monthly payroll cut-off date, the Employer shall give effect to the
adjusted instalment on the payroll run in the following month.

2.10. The Employer, once effecting payment of the monthly instalments, shall forward to the Fund a
payment schedule on or immediately after is payroll cut-off date, reflecting the following: the
names of the Employees from whom deductions were made and the amounts deducted and
the names of the Employees from whom deductions were not made and the reasons for non-
deduction.

3. DISBURSEMENT OF LOAN

The Fund shall pay the amounts due in terms of the Home Loan in accordance with the
provisions contained in the Pension Backed Home Loan Agreement. Payments shall be made
by way of electronic credit to the Employee’s Loan account.
4. REPAYMENTS

4.1. The Loan is repayable in monthly instalments, which shall be applied to interest, fees, charges
and the principal debt owed, respectively.

4.2. In the event of the following, the Fund shall settle the outstanding balance due on the Loan from
the Member’s cash withdrawal benefit, including but not limited to:

4.2.1. an Employee’s termination of employment;

4.2.2. resignation;
4.2.3. dismissal;
4.2.4. death;
4.2.5. retrenchment;
4.2.6. permanent disablement;
4.2.7. retirement; or
4.2.8. the Employee absconding from his/her employment.

5. CONFIDENTIALITY

5.1. All information supplied to the Fund by the Employer, or vice versa, for the purpose of fulfilling
any obligations in terms of this Agreement must be treated as confidential and may only be
used for the purposes contemplated in this agreement.

5.2. All confidential information shall not be disclosed to any person other than the employees and
officers of the Fund and of the Employer. Both the Fund and the Employer agree not to release
or disclose any confidential information to any other party, unless required by law or authorised
in writing by the Fund and/or a Member of the Fund.

5.3. Neither party shall use the names, trademarks, trade names, whether registered nor not, of the
other party in publicity releases or advertising or in any other manner including customer lists,
without having secured the prior written approval of the other party.

5.4. The obligations contained herein shall not apply to information which is publicly available at the
time of disclosure or thereafter becomes publicly available from sources other than the Fund or
the Employer.

5.5. The Fund and the Employer shall take reasonably necessary precautions to maintain the
secrecy and confidentiality of any of the other party’s confidential information.

5.6. The Fund or the Employer shall indemnify one another against any unauthorised disclosure of
confidential information by either of them or by their agents, representatives, service providers
or appointees, provided that the defaulting party has taken reasonably necessary precautions
to maintain the secrecy and confidentiality of the other party’s information.

5.7. This clause shall survive the termination of this Agreement.

6. DATA PROTECTION

6.1. Both the Fund and the Employer acknowledge that all data provided by the Fund to the
Employer, or to which the Employer may be exposed shall be confidential and will be treated
as such. Where applicable, data shall include Intellectual Property belonging to the Fund.

6.2. The Employer will ensure that it shall, at all times, strictly comply with all the applicable data
protection laws and the Fund’s policies and procedures pertaining to data protection.
6.3. The Employer warrants and undertakes that it shall not copy, compile, collect, collate, process,
mine, store, transfer, alter, delete, interfere with or in any other manner use data for any purpose
other than contemplated in this Agreement or with the express prior written consent of the Fund.

6.4. The Employer shall immediately notify the Fund in the event that any data it has access to has
been compromised. The Employer undertakes to inform the Fund as to how it will manage the
compromise and the steps it shall take to rectify the incident to the satisfaction of the Fund.

6.5. The Employer shall ensure that all of it systems, processes and operations, including all
systems on which data is copied, compiled, collated, processed, transmitted, stored, collected,
mined, altered, or deleted or otherwise used, shall at all times comply with any a minimum
standards required by law and be of a standard no less than the standards which are in
compliance with the international best practice for the protection, control and use of data.

6.6. This clause shall survive the termination of this Agreement.

7. BREACH

In the event that any party commits a material breach of any provision of this Agreement and
fails to remedy such breach within 10 (Ten) Calendar Days of receiving Written Notice to rectify
the said breach, the Aggrieved Party shall be entitled, without prejudice to its other rights in law,
to claim specific performance or to cancel the Agreement and institute a claim for damages
against the Defaulting party.

8. EFFECTIVE DATE

This Agreement will become fully enforceable and effective on the Signature Date and will
endure indefinitely until terminated.

9. TERMINATION

Either Party may, on 60 (Sixty) Calendar Days’ notice to the other party, terminate this
Agreement, provided that all the obligations of the parties, as set out in this Agreement and as
they pertain to Home Loan Agreements already concluded shall remain in full force and effect.

10. NOTICES AND DOMICILIA

10.1. Any notices or communications required or permitted to be given in terms of this agreement will
be valid and effective if sent by email or delivered by hand to the addresses set out in clause
10.4.

10.2. Any notice to a Party:-

10.2.1. sent by prepaid registered post will be deemed to have been received on the 7th
(seventh) day of the posting, unless the contrary is proven;

10.2.2. delivered by hand at the chosen domicilium citandi et executandi shall be deemed
to have been received on the day of delivery;

10.2.3. sent by email to a Party’s chosen email address, stipulated in clause 10.4. shall be
deemed to have been received on the date of dispatch unless the contrary is
proven.

10.3. Notwithstanding the above, a Written Notice or communication actually received by a Party will
be adequate Written Notice or communication to it, notwithstanding that it was not sent to or
delivered at its chosen service address.
10.4. The Parties hereby nominate the addresses as set out below as their contact or service
addresses for all purposes under this Agreement.

The Fund

Address: CRF Building

4 Bridal Close
Tyger Falls
Bellville
7530

Representative: Mr Raymond Wentworth

Telephone: 0861 273 863

E-Mail: raymond@crfund.co.za

The Employer

Address:

Representative:

Telephone:

E-Mail:

11. GENERAL

11.1. A certificate signed by the Fund’s authorised employee (whose appointment, authority or
signature does not have to be proven) as to any amounts outstanding under any of the Home
Loan Agreement shall constitute prima facie proof of the facts stated therein.

11.2. It is recorded that the obligations of the Employer shall be limited to the amounts set out in a
valid Authorisation as read with the applicable Repayment Schedule.

11.3. This Agreement constitutes the entire Agreement between the parties relating to the subject
matter hereof and no variation, amendment or cancellation of this Agreement shall be binding
unless reduced to writing and signed by all the parties.

11.4. Should any provision in this Agreement be found to be invalid it shall be severed from the
Agreement and shall not have any affect on the validity of the remaining provisions.

11.5. The contra preferentium rule shall not apply in the interpretation of this Agreement.

11.6. Notwithstanding anything to the contrary, all parties hereto shall comply with all applicable
legislation from time to time.

11.7. The Employer is indemnified and will be held harmless against all/any claim/s that may arise
from the Fund, the Members or any third party pursuant to the incorrect details in respect of the
Employer's obligations having been furnished to the Employer.
12. Execution

SIGNED AT ………..…….……… ON THIS THE ____ DAY OF ……………………………2023.

Witnesses: 1. ______________________ ________________________

(Name and Surname) (Signature)

2. ______________________ ________________________
(Name and Surname) (Signature)

__________________________
(Signature)
ON BEHALF OF THE FUND

Name and Surname: ______________________ ___

Designation: _____________________________
who warrants that s/he has the authority to sign this
Agreement on the Fund’s behalf

SIGNED AT ………….……………. ON THIS THE ____ DAY OF ………………………….2023.

Witnesses: 1. ______________________ ________________________

(Name and Surname) (Signature)

2. ______________________ ________________________
(Name and Surname) (Signature)

__________________________
(Signature)
ON BEHALF OF THE EMPLOYER

Name and Surname: _____________________________

Designation: _____________________________
who warrants that s/he has the authority to sign this
Agreement on the Employer behalf