TERMS AND CONDITIONS

1. PARTIES

1.1.    The parties being DDL Security Services (Pty) Ltd 24-7 T/A 24-7 Security Services (Reg:

2004/004622/07: PSIRA Number 114285), referred to as the “THE COMPANY”, and (“The CLIENT”) have entered into a SERVICE AGREEMENT, which is supplemented by this SERVICE SCHEDULE. To the extent that there is any conflict between the signed SERVICE AGREEMENT and this SERVICE SCHEDULE, the provisions of this SERVICE SCHEDULE shall apply.

2. DEFINITIONS

2.1.    “Initial period” shall mean the rental period as indicated in Part H read with Clause 17.

2.2.    “Link-up” shall mean the installation and connection of the COMMUNICATION DEVICE to the already existing alarm system of the CLIENT if marked in Part G of Schedule A1.

2.3.    “Take-over” shall mean the instance where the COMMUNICATION DEVICE of THE COMPANY has already been installed in the PREMISES prior to the existence of this agreement for the purposes of monitoring a previous CLIENT, if marked in Part G of Schedule A1.

2.4.    “Upgrade” shall mean the upgrade of the existing ALARM SYSTEM of the CLIENT, if marked in Part G of Schedule A1.

2.5.    “New” as per schedule A1 shall mean the installation of a complete new ALARM SYSTEM, if marked in Part G of Schedule A1.

2.6.    “SAIDSA” means the South African Intruder Detection Services Association.

2.7.    “Alarm” or “alarm system” shall mean an electronic intruder detection system capable of causing the Communication Device to communicate with a central station.

2.8.    “Emergency signal” shall mean intruder and/or panic signals.

2.9.    “Warranty period” shall mean twelve (12) months from date of installation of a new alarm system by the COMPANY, which excludes the batteries which are consumables to be replaced at the CLIENT’s cost.

SECTION A: INSTALLATION

3. COMMUNICATION DEVICE

THE COMPANY undertakes to install signalling equipment (hereinafter referred to as the “COMMUNICATION DEVICE”) for the monitoring of the ALARM SYSTEM installed at the premises as described in Part B of Schedule A (hereinafter referred to as the “PREMISES”) in the control room of THE COMPANY or its sub-contractor. Signalling equipment shall mean such equipment as defined and prescribed in terms of the by-laws of SAIDSA and as selected in Part C of Schedule A1 hereto.

4. ALARM SYSTEM

Where THE COMPANY has installed the ALARM SYSTEM, it will consist of components as set out in the Quotation to the CLIENT. This agreement has been entered into after the acceptance of the quotation or estimate by the CLIENT. The CLIENT hereby confirms that he/she is satisfied with the ALARM SYSTEM as set out in the quotation.

5. INSTALLATION COST

5.1   The cost for the installation of the COMMUNICATION DEVICE (link-up fee as set out in Part C of Schedule A1) and/or the ALARM SYSTEM (where purchased or rented from THE COMPANY) is in the amount as set out in the quotation, payable on acceptance of the quotation, which amount shall be payable over and above any fees owing to THE COMPANY in terms of this SERVICE SCHEDULE and the SERVICE AGREEMENT.

5.2     Where the ALARM SYSTEM is rented from the COMPANY on the terms and conditions set out herein, the ownership of the ALARM SYSTEM shall at all times remain with the COMPANY however risk in possession shall pass to the CLIENT upon installation and the CLIENT will be required to take out adequate insurance to insure and protect the ALARM SYSTEM from any loss or damage.

6. INSTALLATION (GENERAL)

6.1     THE COMPANY will start as soon as possible with the installation of the COMMUNICATION DEVICE and/or ALARM SYSTEM with all due care after expiry of the cooling-off period as provided for in the Consumer Protection Act.(“CPA”). The CLIENT shall afford THE COMPANY every assistance to complete the installation and will not interfere with the COMPANY’s employees and/or sub-contractors in the performance of their duties. The CLIENT further agrees to accept sole responsibility for any damages to the PREMISES caused by the installation of the COMMUNICATION DEVICE and/or ALARM SYSTEM and/or the warning boards.

6.2     The CLIENT agrees that where he/she owns an existing ALARM SYSTEM, prior to entering into this agreement, in or on the PREMISES, the COMMUNICATION DEVICE installed shall be connected to such ALARM SYSTEM (“link-up”). If such ALARM SYSTEM is found to be faulty or transmits false signals, THE COMPANY shall provide the CLIENT with a quotation for the repair of such ALARM SYSTEM. Any unforeseen delays in the start of the installation, or repairs to an existing faulty ALARM SYSTEM will not give reason for cancellation of the SERVICE AGREEMENT or this SERVICE SCHEDULE. It is the CLIENTS’ responsibility to provide THE COMPANY with the correct installer code of the existing ALARM SYSTEM in order to install the COMMUNICATION DEVICE. In the absence of the correct installer code, THE COMPANY will attempt to default the alarm panel and re-program same, at the expense of the CLIENT.

6.3     In the event that the COMMUNICATION DEVICE is connected to an existing ALARM SYSTEM, it is not the responsibility of THE COMPANY to ensure that the existing ALARM SYSTEM was installed in terms of the standard installation practice of SAIDSA, or any other industry practice, and the CLIENT accepts full responsibility for such an installation.

7. MAINTENANCE AND WARRANTY

7.1      THE COMPANY agrees to maintain and service the COMMUNICATION DEVICE for the duration of this agreement, if necessary, at its expense. THE COMPANY undertakes no responsibility whatsoever for the maintenance and/or repair of any ALARM SYSTEM or any component thereof not installed or not covered by a warranty from THE COMPANY and the CLIENT undertakes that any such ALARM SYSTEM shall at all times during the existence of this agreement be kept in proper working order and condition by the CLIENT at its sole cost and expense. Upon request by the CLIENT, THE COMPANY will provide a quotation and proceed with repairs to such an ALARM SYSTEM on the acceptance by the CLIENT. The CLIENT shall not withhold any payments payable to THE COMPANY in respect of this agreement due to the non-performance of the ALARM SYSTEM. It is specifically agreed that is it the responsibility of the CLIENT to test the alarm system at least once a month and to ensure that all detection devices connected to the ALARM SYSTEM provides adequate protection as required by the CLIENT and/or his insurer from time to time.

7.2     The COMPANY agrees to maintain the ALARM SYSTEM purchased from THE COMPANY for the duration of the warranty period from date of installation. Should any third party in any way interfere, connect additional components or effect repairs to the ALARM SYSTEM during the guarantee period, the warranty will immediately become null and void.

7.3     Should the COMMUNICATION DEVICE or ALARM SYSTEM, during the warranty period, fail to operate for any reason upon notice by the CLIENT thereof, the COMPANY will attempt to commence repairs thereto as soon as possible. If the COMPANY fails to do so, the CLIENT shall not be entitled to any claim for damages or reduction of fees against THE COMPANY, nor shall the CLIENT have the right to cancel this agreement or to withhold payment of any fees by reason thereof. In the event that the COMMUNICATION DEVICE or ALARM SYSTEM fails to operate due to the fault or negligence of the CLIENT, its agents, servants or any other third party, fire, theft, lightning, a power surge or due to malicious or accidental damage the cost of such repairs/replacements shall be borne and paid by the CLIENT and is excluded from any warranty. It is therefore the responsibility of the CLIENT to insure the COMMUNICATION DEVICE and ALARM SYSTEM.

7.4     THE COMPANY shall at all times be entitled to remove any part of the COMMUNICATION DEVICE or ALARM SYSTEM from the PREMISES in order to affect any necessary repairs which cannot be affected on the PREMISES.

7.5     The CLIENT is hereby informed and advised to upgrade the alarm system every two (2) to three years from date of installation, and to test the system at least once a month. The battery should similarly be replaced every twelve (12) months. It is the CLIENTS’ sole responsibility to call on THE COMPANY to inspect and determine the need for an upgrade.

7.6     In particular it is specifically hereby agreed that should the CLIENT call upon THE COMPANY to affect any repairs to the ALARM SYSTEM and or the COMMUNICATION DEVICE, and where such repairs are not covered by any warranty in terms of this agreement, the CLIENT hereby pre-authorizes the cost of such a call out equal to the amount normally charged by THE COMPANY at the time. The call out fee does not include any cost for material or labour used for such a repair.

8. OWNERSHIP OF COMMUNICATION DEVICE

The COMMUNICATION DEVICE and any rented ALARM SYSTEM except for a digital communicator, will at all times remain the property of THE COMPANY and shall not by reason of attachment or connection to any fixed property become or be deemed to be a fixture to such property and shall at all times be separable, and shall be free from claim or right of the CLIENT except as set out herein. Upon termination of this agreement, or any extension hereof, for any reason, THE COMPANY will have the right to remove the COMMUNICATION DEVICE from the PREMISES and the CLIENT undertakes to allow the employees and/or sub-contractors of THE COMPANY reasonable access and egress in and from such PREMISES for the said purpose. The CLIENT undertakes to notify the landlord of the PREMISES at which the COMMUNICATION DEVICE and/or rented ALARM SYSTEM is to be installed, immediately of the name and address of THE COMPANY and to further notify such landlord in writing of the terms of this agreement providing for the retention of ownership of the COMMUNICATION DEVICE and/or rented ALARM SYSTEM by THE COMPANY. Should the CLIENT, upon termination of the Agreement for any reason whatsoever, fail to provide the Company with access to the premises on reasonable notice in order to remove the COMMUNICATION DEVICE and/ or rented ALARM SYSTEM, the Company reserves the right, in its sole discretion, to hold the CLIENT liable for the replacement cost of the COMMUNICATION DEVICE and/or rented ALARM SYSTEM, which amount shall be added to the CLIENT’s final invoice.

9. RISK IN POSSESSION

Notwithstanding the retention of ownership by THE COMPANY of the COMMUNICATION DEVICE and/or rented ALARM SYSTEM, the risk in possession of the COMMUNICATION DEVICE and/or rented ALARM SYSTEM shall pass to the CLIENT on the installation thereof in the PREMISES. The CLIENT agrees to assume full responsibility for any risk arising out of the possession and the use of the COMMUNICATION DEVICE and/or rented ALARM SYSTEM and accepts liability to make good to THE COMPANY the market value, being the agreed value of the COMMUNICATION DEVICE and/or rented ALARM SYSTEM as set out in Part C of Schedule A1, at the time of and in the event of the same being destroyed or damaged by fire, lightning, burglary, storm, tempest, flood or any act of God,pests, rodents, riots, civil commotion, or caused by any person or workman not in the employment of THE COMPANY working on or tampering with any part of the ALARM SYSTEM or COMMUNICATION DEVICE or through any cause other than through the fault or negligence of THE COMPANY, its employees or agents.

10. REMOVAL OF AND ALTERATION TO INSTALLATION

The CLIENT shall not be entitled to remove the COMMUNICATION DEVICE or ALARM SYSTEM from the position(s) in which it was placed by THE COMPANY or to make any alterations thereto. In the event of the CLIENT, during the duration of this SERVICE AGREEMENT, desiring to have the COMMUNICATION DEVICE or ALARM SYSTEM moved in or from the PREMISES in which installed and/or to relocate in the same or other premises, or desiring any alterations to be made thereto, or any part thereof, the CLIENT will give reasonable notice to THE COMPANY in writing requesting so. Any removal, installation or alteration will be carried out only by THE COMPANY and will be subject to all terms and conditions herein set out. The CLIENT agrees to accept sole responsibility for and indemnifies THE COMPANY against any damage to the premises in which the COMMUNICATION DEVICE and ALARM SYSTEM is installed, caused by the removal or alteration of any part thereof from the PREMISES whether during the duration of this agreement or upon termination. All alterations to or removal and re-installation of the COMMUNICATION DEVICE and/or ALARM SYSTEM will be done at the sole expense of the CLIENT.

11. ELECTRICAL CURRENT AND COMMUNICATION COSTS

THE COMPANY shall not be liable for the cost of electricity used by the COMMUNICATION DEVICE and/or ALARM SYSTEM, or any part thereof, and the CLIENT shall be responsible for the continuous supply of electricity and for the installation of all switches, plugs and other equipment necessary for the installation and operation of the ALARM SYSTEM and/or COMMUNICATION DEVICE. The CLIENT will also be responsible for the provision of a telephone line (if applicable), together with the cost of calls, utilized by the digital communicator and/or all the data costs associated with the GSM modem (if applicable).

12. INSPECTION & TERMINATION

12.1   THE COMPANY will have the right at all times, with prior arrangement, to enter the PREMISES for the purpose of inspecting the ALARM SYSTEM and/or COMMUNICATION DEVICE.

12.2   Upon cancellation of this SERVICE AGREEMENT for any reason whatsoever, the CLIENT must give the COMPANY employees and/or subcontractors access to the PREMISES to remove the COMMUNICATION DEVICE and/or rented ALARM SYSTEM, failing which the CLIENT will be charged for the same.

SECTION B: MONITORING SERVICE

13. SERVICE

13.1   THE COMPANY, either itself or by an approved sub-contactors will monitor signals from the COMMUNICATION DEVICE installed on the PREMISES linked to the ALARM SYSTEM of the CLIENT.

13.2   THE COMPANY will on receipt of a signal, act in accordance with THE COMPANY’s Standard Operating Procedure (“SOP”), unless otherwise agreed to in writing in this SERVICE SCHEDULE which deviations may subject to additional charges.

13.3   THE COMPANY will only be obliged to attempt to communicate with the CLIENT or key holder(s) via the 24-7 SECURITY APP, which the CLIENT is required to download to relevant mobile devices by the commencement date set out at Part H of ANNEXURE A1 above. It will not be expected of THE COMPANY to take any other steps to communicate with the CLIENT or key holders.

13.4   It is understood by the CLIENT that in the event of a storm, area power failure and/or grid collapse, that it may occur in certain circumstances that signals are not received by THE COMPANY due to excessive traffic on the radio frequency and base stations used for communication between the COMMUNICATION DEVICE and the control centre of THE COMPANY.

13.5   In the event that the CLIENT requires the monitoring of signals other than emergency signals i.e. opening and closing signals, such signals will only be monitored by the installation of a secondary COMMUNICATION DEVICE for the sole purpose of this monitoring facility. This facility is not available to residential CLIENTS.

13.6   Where the receipt of a signal by THE COMPANY is dependant on a third party network, the CLIENT acknowledges that THE COMPANY has no control over this network, and subsequently indemnifies THE COMPANY against any failure in receipt of signals from such a COMMUNICATION DEVICE.

14. FALSE ALARMS/SIGNALS

It is the CLIENT’s obligation to cancel any false alarms and/or signals timeously on the 24-7 SECURITY APP. Should THE COMPANY or its approved sub-contractor attend at the PREMISES needlessly, as a result of any false alarms and/or signal not being cancelled, the COMPANY reserves the right to charge the CLIENT a call-out fee of R75.00 (seventy five rands) per instance.

15. KEYHOLDERS

The CLIENT will at all times keep THE COMPANY notified in writing of the name and contact numbers of one or more person(s) with whom THE COMPANY may communicate in regard to the COMMUNICATION DEVICE, its operation and the PREMISES in which it is installed.

SECTION C: REACTION SERVICE

16. SERVICE

16.1   On receipt of an emergency signal and/or call and if no cancellation is communicated via the 24-7 SECURITY APP, or a satisfactory explanation is not received from the CLIENT by voice call, the COMPANY will immediately dispatch the closest reaction officer who will proceed as quickly as operational circumstances may permit, in order to minimise the actual loss, injury or damage suffered by the CLIENT, his/her family, property or assets through the prompt reaction to the PREMISES, and offer every reasonable assistance in the handling of the situation.

16.2   It is specifically agreed that the COMPANY cannot guarantee a specific response time.

16.3   It is accepted that the reaction vehicles of the COMPANY and/or its sub-contractors are not classified as emergency vehicles and therefore will not be expected to be involved in high-speed traffic pursuits or the violation of any traffic regulations.

16.4   Subject to the specific request of the CLIENT and provided that a safe means of access is given by and at the expense of the CLIENT, the reaction officer will carry out inspections at the PREMISES in terms of which the reaction officer will enter the grounds of the PREMISES and inspect the perimeter of the dwelling and outbuildings.

16.5   Should the reaction officer detect any visible damage or disturbance of the security of the PREMISES, and in the CLIENTS absence, the central station will notify the CLIENT and/or key holder(s). The COMPANY will also, at the risk and expense of the CLIENT, take such steps at its sole discretion and as the circumstances permit to attempt to ensure the security of the PREMISES, until the arrival of the CLIENT, its key holder or any other person so instructed by the CLIENT.

If the CLIENT/key holder contacted does not attend the PREMISES within (20) twenty minutes from the time the alarm was activated, there is no obligation on THE COMPANY to secure the premises, but the COMPANY will arrange the placement of a guard at the request of the CLIENT. The CLIENT will bear the expense of such a guard at the standard rate.

16.7   There will be no responsibility on THE COMPANY in terms of this agreement or otherwise to assist the CLIENT, and/or any other person on the PREMISES in respect of any situation caused from and arising out of domestic violence or drunken disorderly conduct, however the COMPANY will at its own discretion inform and request the SOUTH AFRICAN POLICE SERVICES (“SAPS”) to attend to the PREMISES.

17. ABSENCE OF CLIENTS FROM PREMISES (RESIDENTIAL ONLY)

In the event of the CLIENT leaving the PREMISES for any period exceeding forty-eight (48) hours, whether on holiday or for any other reason, the CLIENT may notify THE COMPANY of such absence. The CLIENT undertakes that during his/her absence as aforesaid, no domestic pet at the PREMISES will be in the position to activate the alarm system. On request of the CLIENT, the COMPANY may conduct ad hoc PREMISES check which service will be charged separately from the fee contained in this SERVICE, which amount is payable in advance.

18. COOLING-OFF PERIOD

18.1   In terms of Section 16 of the Consumer Protection Act (“CPA”) as amended from time to time, the CLIENT has 5 (five) days from signature hereof to cancel this agreement in writing without any penalty provided that THE COMPANY has not commenced with the installation of the COMMUNICATION DEVICE and/or ALARM SYSTEM.

18.2   In the event of such installation the CLIENT will be liable to THE COMPANY for the removal of such COMMUNICATION DEVICE and/or ALARM SYSTEM as contemplated in Section 20(6) of the Consumer Protect Act, as amended from time to time.

18.3   In the event of the removal of the COMMUNICATION DEVICE only, the CLIENT will be liable to THE COMPANY in an amount equal to THE COMPANY’s standard call out rate at the time of such removal together with the fee of such installation, if any.

18.4   In the event of the removal of ALARM SYSTEM, the CLIENT will be liable to THE COMPANY in an amount not exceeding 25% of the initial accepted quotation value, whichever of the two is the highest, in lieu of the fact that parts of the ALARM SYSTEM such as the wiring will not be re-usable, and that the equipment has been removed from its original packaging when installed.