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Vamizi Island Use Rules Acknowledgement by Purchaser The Purchaser hereby acknowledges and agrees that he has read the content contained herein, and agrees to abide with the content thereof Dated_______________________ Purchaser____________________ Plot Number__________________ As Witness__________________

Introduction and powers of amendment These Island Use Rules exist to protect Vamizi Island's natural beauty and to protect the common interests of all Villa Owners. They should be read in conjunction with, and form part of, the VHOA Constitution. It should also be read in conjunction with the Vamizi Design Manual. All Villa Owners, by virtue of their ownership of a Private Villa, are obliged to observe and comply with the provisions of these rules and regulations and remain responsible for the liabilities imposed. These rules and regulations may be amended and updated at any stage in such manner as CDBT, with the approval of not less than two thirds of those present and voting at the relevant GMVO, may determine. Breach of these Island Use Rules is dealt with in the manner as set out in Clause 12 of the VHOA Constitution.

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1.

Definitions

Common Area(s) - the area(s) within the Estate Area, inclusive of the airstrip, buildings at the airstrip and access routes to and from the airstrip, held on the Island outside the Estate Area, but excluding the Villa Plots Common Retreats - the beach clubs, restaurants and amenities in specified locations across the Island, as identified on the Master Plan and established for the exclusive enjoyment of Villa Owners Conservation Team - CDBT appointed conservation professionals, tasked with implementing measures and management plans to protect the Island's inland and marine biodiversity CDBT - Cabo Delgado Biodiversity and Tourism, Limitada Design Code - has the meaning given to it in the Services and Maintenance Agreement to be entered into between each Villa Owner and CDBT Design Manual - has the meaning given to it in the Services and Maintenance Agreement to be entered into between each Villa Owner and CDBT Design Review Committee - has the meaning given to it in the Promissory Sale and Purchase Agreement to be entered into between the Purchaser and CDBT Dive Centre - the dive centre at the Marina, or pending the construction of the Marina, the Lodge Estate Area - the area held by CDBT under the DUAT Exclusive Build Area - the area within which buildings must be constructed on a Villa Plot subject to the provisions of the Design Code Page | 2


Fishing Centre - the fishing centre at the Marina, or pending the construction of the Marina, the Lodge

GMVO - a General Meeting of Villa Owners, held in accordance with the VHOA Constitution High Water Mark (HWM) - the line defined by the high tide of the ocean at spring high tide Island - Vamizi Island, Quirimbas Archipelago, Mozambique Island Manager - an individual appointed by CDBT to manage the affairs of the Island. The Island manager will head up a senior management team.

Marina - the location where all motorized craft must be stored and launched from as identified on the Master Plan. Rules of the waterways and marina will be on display at the Marina Master Plan - the Vamizi Island Master Plan as prepared by CDBT and approved by the Mozambican authorities Ops hub - the operations centre as identified on the Master Plan Private Villa - the buildings/improvements made within the Exclusive Build Area of the Villa Plot Villa Owner - the registered title holder to a Private Villa Villa Plot - the private area including and surrounding the Exclusive Build Area to which the Villa Owner has an exclusive right of use VHOA - the Vamizi Home Owners' Association VHOA Board - the board of directors of the VHOA, as appointed from time to time in accordance with the VHOA Constitution VHOA Constitution - the constitution of the VHOA, as in force from time to time Waterways - the reef protection areas around the Island to which these rules apply

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1.

Moving around on the Island

1.1

In order to preserve vegetation and prevent erosion, movement around the Island inland of the high water mark, must at all times be restricted to marked tracks (e.g. golf cart tracks, mountain bike trails & walking paths), as defined on the Master Plan.

1.2

Driving of any vehicle on any beaches or primary sand dunes is expressly forbidden.

1.3

No vehicles other than golf carts, which have been authorised by the GMHO Committee, are permitted on the Island – save for the existing vehicles used exclusively by the Vamizi Island Lodge or by construction staff.

1.4

No scooters or motorbikes are permitted on the Island except those used by construction staff.

1.5

Villa Owners and their guests shall have a right to access and traverse the Common Areas on the Island, save for the private demarcated Villa Plots and restricted areas for wildlife protection as designated by the Island Manager in accordance with the Master Plan and with advice from the Conservation Team from time to time.

1.6

No Villa Owner shall cause or allow an obstruction to be created in the Common Areas.

1.7

No parking space in the Common Area shall be used for any purpose other than to park golf carts, except as permitted by the GMHO Committee.

1.8

Pedestrian access to the beach from a Villa Plot is restricted to a maximum number of paths as set out by the development team during construction with advice from the Conservation Team to ensure protection of the sensitive coastal zone.

2.

Conservation

2.1

No Villa Owner shall cut, injure or otherwise damage any tree, or any vegetation whatsoever, on the Villa Plot as well as the Common Area.

2.2

Hunting and snaring are not permitted on the Island.

2.3

Disturbance of any animal or bird is strictly forbidden.

2.4

Feeding of samango monkeys is strictly forbidden.

2.5

All rubbish bins must be enclosed, and no food left accessible to monkeys and other animals.

2.6

No shells (alive or dead) may be removed from the ocean or the beach.

2.7

Villa Owners and their guests may not remove any flora and/or fauna from the Island.

2.8

No non-indigenous animals or plants shall be introduced to the Island Page | 4


2.9

Mozambican law prohibits the collection of dead or living coral, shells or any biological material all of which play a pivotal role in the ecosystem.

2.10

Mozambican law specifically prohibits hunting marine turtles and removing or destroying their eggs. Furthermore, any activity that may disturb marine turtles' ecosystems and habitat, and in general their normal development, is prohibited by law – in particular, external lighting from the Private Villa that impacts upon the coastal zone is to be strictly controlled.

2.11

No animal, livestock, fowl or pets shall be kept on the Island by Villa Owners.

2.12

Villa Owners are obliged to adhere to notices issued from time to time by the Conservation Team or the Island Manager.

2.13

The Conservation Manager may access any plot, with prior notice, for environmental conservation inspections.

2.14

To maintain a positive socio-economic impact on the local community, we recommend that all charity contributions are channelled via the Community Liaison Officer.

3.

Private Villa use

3.1

No Private Villa shall be used or occupied or permitted to be used or occupied except as a private dwelling by the Villa Plot owner, his family, guests or by tenants through the rental pool system.

3.2

Villa Owners shall not advertise Villa Plots or buildings thereon for rent. An optional rental pool scheme will be established by CDBT, which will have the exclusive right to rent Private Villas on the Island.

3.3

No trade or business of any kind may be carried in or on any Villa Plot or any building thereon.

3.4

The Island Manager shall certify the number of beds within each Private Villa, and this number should not be exceeded at any one time.

3.5

Swimming pools, plunge pools etc may not use clorinated water. There are alternatives available that are not damaging to the environment.

3.6

Bio-degradable detergents must be used at all time.

4.

Landscaping and gardening

4.1

Gardening or indigenous landscaping is only permitted within the Exclusive Build Area.

4.2

Any removal of trimming or vegetation requires the express approval of the Island Manager. Page | 5


4.3

Large garden refuse, such as branches and large shrubs, must be disposed of at the Ops hub.

4.4

No 'gardening' or any intervention whatsoever is permitted outside of the Exclusive Build Area.

4.5

Only pesticides, fertilisers and other garden chemicals purchased from the Island nursery may be used.

4.6

The Island Manager has the right at any time to restrict the creation of gardens within the exclusive building area should he be of the opinion that they are not in keeping with the flora of the Island.

4.7

Permitted plant species will be available for purchase from the Island Nursery.

5.

Barbecues and fires

5.1

Barbecue activities may only be conducted with fixed or movable barbecue sets on the Exclusive Build Area and always with the appropriate care to avoid fires.

5.2

Outside fires are only permitted at designated fire places made of fire resistant brick.

5.3

Fires on the beaches or dunes are expressly forbidden.

5.5

No owner of any Villa Plot shall do anything or permit anything to be done that will further increase the risk of fire on their Villa Plot or any buildings thereon.

6.

Refuse

6.1

A Villa Owner shall at all times comply with the directions of the Island Manager in relation to the disposal of garbage and the control or extermination of vermin, insect and other pests. Compliance with the Design Manual in relation to the storage of refuse will be strictly enforced.

6.2

Recycling of waste material is a company policy.

6.3

No owner, family member, guest or tenant of any Villa Plot shall throw refuse out of the window of a building, or from a vehicle in the Common Area, or from any terrace or balcony on his Villa Plot.

6.4

Villa Owners are encouraged to collect and dispose of 'flotsam' from the beach zone in front of their Villa Plot.

7.

Good neighbourliness

7.1

No instrument or other device shall be used on a Villa Plot which in the opinion of the Island Manager causes a disturbance or interference with the comfort of other Villa Owners and/or tenants.

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7.2

No Member shall cause any noise to be made or any activity to be undertaken that will interfere unreasonably with any other Villa Plot owner or tenant, or guest of the Lodge.

7.3

The volume of music, musical instruments, entertainment or activities of domestic employees emanating from a Private Villa or its surroundings should be at such level as not to cause nuisance to any other Villa Owners, their guests, tenants, guests of the lodge or to wildlife on the Island.

7.4

No television antenna, tower or similar structure shall be erected on a Villa Plot except as approved by the Design Review Committee.

7.5

No signs, billboards, notices or other advertising matter of any kind shall be placed on any area of any Villa Plot without the written consent of the Island Manager first being obtained.

7.6

When using the facilities of the Common Retreats the Villa Owner and his guests must ensure that they are aware of and comply with the rules and regulations as advertised on the premises from time to time i.e. the rules contained herein are not exhaustive.

7.7

Villa Owners shall not be entitled to use the Lodge facilities without the express permission of the Lodge Manager in advance and subject to availability.

8.

Private Villa construction/alterations

8.1

No Villa Plot shall be further sub-divided.

8.2

Only ONE Private Villa, subject to the restrictions on maximum size as contained in the Design Manual, may be erected on the Exclusive Build Area of any Villa Plot.

8.3

No building other than a building permitted by the Vamizi Design Review Committee shall be built or erected on any Exclusive Build Area.

8.4

No building shall be constructed on any Exclusive Build Area by any person other than a company designated by CDBT.

8.5

A Villa Owner desiring to erect any buildings and/or structures of any nature whatsoever, or to make any alterations, modifications or renovations to the exterior of such buildings and/or structures ("the proposed work") on the Exclusive Build Area of his Villa Plot shall first submit sketch plans to the Design Review Committee and, once those are provisionally approved by the Design Review Committee, shall then submit a full detailed set of proposed building plans and specifications, which indicate both construction and design details, to the Design Review Committee, for its final written approval, prior to the transfer of such plans to CDBT for submission to the relevant authorities for approval in accordance with clause 8.7.

8.6

The Design Review Committee shall only give written approval for the proposed work: Page | 7


(a)

if the proposed work complies with the Design Code; and

(b)

the Villa Owner has made payment to CDBT of any costs which may be incurred in obtaining such approval, including a 10% management fee to include the costs incurred by the Design Review Committee

8.7

Any application to any governmental authority for permission to make any addition, alteration or improvement on any Villa Plot in accordance with this clause 8 shall be executed by CDBT on behalf of the owner of the Villa Plot at cost plus [10%] professional and management fee. The application may only be made once approval has been granted by the Design Review Committee, subject to any scrutiny fees applicable and payable by the Villa Owner.

8.8

The timing of alteration works must be carefully coordinated with the Island Manager to minimise disturbance to the owners, guests or tenants of other Villa Plots and to Lodge guests.

8.9

Any modifications or alterations must be made WITHIN the Exclusive Build Area on the Villa Plot.

8.10

Each owner of a Villa Plot shall promptly perform repair work on any building or construction within his own Exclusive Build Area which if omitted would in the opinion of the VHOA Board adversely affect the common good of all Villa Owners.

8.11

CDBT may undertake to make emergency repairs on a Villa Plot which constitute an immediate health hazard without the prior authorisation of the plot owner, the cost of which will then be expenses to the Villa Owner (e.g. a leaking septic tank).

8.12

The Villa Owners are not permitted to install extra diesel or petrol powered generators. Electricity must be obtained from the service hubs or from solar panels or other renewable energy sources installed by the Villa Owner within the Villa Plot, provided always that the latter shall not disturb or inconvenience other Villa Owners and guests, tenants or Lodge Guests and will be designed, supplied and fitted by CDBT at cost plus 10% (to include the fees of the Design Review Committee), approved by the Design Review Committee, and which will integrate with the energy grid on the Island.

8.13

CDBT encourages the use of renewable energy as the primary energy source on Vamizi.

9.

Safety and security

9.1

CDBT will not be responsible for the safety of possessions stored in Private Villas or on whether relating to the owners, occupants or tenants. It will be the responsibility of the Villa Owner to insure his contents against fire and theft.

9.2

CDBT shall not be responsible for any loss, injury or damage caused to the Villa Owners and/or their guests of any nature.

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9.3

Children under the age of 12, must be supervised at all times when at the beach, swimming or partaking in water sports.

9.4

All electrical appliances or equipment used on any Villa Plot shall comply with normal standards and the applicable regulations made by the VHOA Board and from time to time in force.

9.5

The fire-fighting equipment located on any Villa Plot must be maintained in good working condition

10.

Private planes and helicopters

10.1

Villa Owners that wish to land and store their own aircraft on Vamizi whilst in residence must sign an aviation indemnity agreement in the form provided by CDBT.

10.2

A private plane may be parked on the Island whilst the owner is in residence. It is parked at the owner's risk. A landing fee and daily parking fee shall apply.

10.3

Helicopters are permitted to land on the helipad at the airstrip subject to the Island Manager's prior permission and provided that there is minimal disturbance to Villa Owners, guests, tenants and Lodge guests.

11.

Marina and waterway use

11.1

These rules shall be governed by and construed and interpreted in accordance with the laws of the Republic of Mozambique and all users of the Marina and Waterways consent to the jurisdiction of the Courts of Mozambique.

11.2

CDBT may purchase a small pool of motor boats (for fishing/diving) and rent them to other Villa Owners or guests of the Lodge. Villa owners (either individually or collectively) may also purchase motor boats or the same purposes and may arrange for their hire through CDBT by other villa Owners/Lodge guests. Each boat will have a dedicated skipper to navigate the waters, find the dive and fishing spots and maintain the craft.

11.3

Small non-motorised craft (such as canoes, windsurfers, kayaks etc) that have an 18ft or smaller hull and may be lifted by owners or staff must be stored in garages/storerooms/boat-racks or covered trailers on the Exclusive Build Area of the Villa Plot. During occupation of a Private Villa the non-motorised craft may be stored overnight within the tree line 10 to 15 metres above the High Water Mark.

11.4

Larger non-motorised and all motorised craft (such as sailing yachts and all motor boats) must either be stored at the Ops Hub or the Marina at all times. This includes any temporary marina or moorings on the South side of the island during the months of December, January and February.

11.5

Motorised craft and all other marine craft owners must: (a)

ensure that their craft is at all times seaworthy and in a fit and proper condition; Page | 9


(b)

ensure that they take reasonable precautions against the outbreak of fire in or upon their craft, and ensure that there is at least one suitable, operational fire extinguisher for every 5 metres of motorised craft at all times;

(c)

notify the Marina Manager of their intention to use any motorised craft and the approximate departure and return timings;

(d)

report any incident or accident occurring aboard any craft of a serious nature to the Marina Manager;

(e)

always proceed at a safe speed in relation to the prevailing weather and sea conditions;

(f)

refrain from crossing over coral or coral reefs at a depth of less than 2.5 meters with boats with or without motor;

(g)

always comply with the designated routes in and out of the Marina and within the Waterways as advertised at the Marina;

(h)

either use the services of a dedicated skipper, or hold a valid skipper's license for Mozambique as well as the relevant 1st aid and Radio qualifications;

(i)

notify the Marina Manager of any complaint in regard to the skipper;

(j)

ensure that children and non-swimmers wear personal flotation devices at all times;

(k)

acknowledge that the International Rules for the Prevention of Collisions at Sea shall apply to the Marina and Waterways;

(l)

ensure that a working VHF radio and/or satellite telephone are aboard the motorised craft at all times;

(m)

ensure that details of the craft are provided to the Marina Manager as may be required from time to time, as well as any changes to the ownership of the craft;

(n)

not store on the craft any dangerous, inflammable, poisonous or noxious substances other than in properly secured containers specifically designed to contain such substances against leakage;

(o)

not discard or discharge any refuse or waste materials such as oil, petrol, tar, paint, detergent, sewerage, or other debris into the Marina area of elsewhere in the Waterways;

(p)

only refuel within the Marina;

(q)

not operate, or permit to be operated, in or around the marina or in proximity to any Private Villas or the Lodge, any engine generator, other

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machinery, radio, CD player or any other apparatus, so as to cause nuisance, annoyance or inconvenience to any person; (r)

not use the craft or the Marina or Waterways in a manner which may cause nuisance, annoyance or inconvenience to any Villa Owner or Lodge guest;

(s)

maintain the craft in neat and tidy condition and in a state of good repair;

(t)

not charter the craft to any 3rd party or otherwise cause the craft to be used commercially, unless via the Marina Manager;

(u)

not display 'for sale', 'for rent' or similar such advertising materials anywhere other than on the allocated notice board in the Marina and only with the consent of the Marina Manager; and

(v)

ensure the motorised craft is fully insured at all times and demonstrate proof of such insurance to the Marina Manager as may be required from time to time; and

(w)

ensure that any annual licenses, taxes or fees payable relating to the craft are up to date.

(x)

The cleaning of boats in the water must be carried out with bio-degradable detergents only.

(y)

The use of special sun-creams is encouraged as research has shown that suncreams have a serious and immediate destructive effect on coral species.

12.

Fishing and diving rules

12.1

Any person seeking to fish shall obtain an official permit through the fishing centre at Marina, or pending the construction of the Marina, the Lodge.

12.2

Any person seeking to fish or dive shall not be entitled to do so until such person has signed the conduct rules, a copy of which is displayed at the both the Dive Centre and the Fishing Centre.

12.3

All divers must sign a non-liability form at the Dive Centre, regardless of their qualifications.

12.4

Due to the remoteness of Vamizi all divers must be able to demonstrate proof of diving insurance.

12.5

At least one person in the dive group must carry a buoy;

12.6

There must be no collection of corals and shells anywhere and no spear-fishing within the sanctuary.

12.7

There exists a marine sanctuary managed by the community CCP. This is a strict notake zone. Diving, snorkelling and sailing are acceptable activites within the Page | 11


sanctuary and it is with the advice of the Dive Center Manger to limit the number of persons and trips per day to the same reef to minimize disturbance. 12.8

There shall be no spear fishing within the sanctuary.

12.9

The release of all fish species caught is highly encouraged.

13.

Miscellaneous

13.1

Children must be accompanied by a responsible adult whilst in or around the Marina, or Waterways.

13.2

Due to presence of coral in close proximity to the beach, motorised craft may not be beached anywhere on the Island.

13.3

Anchoring on coral or on the coral reef is prohibited by Mozambican law.

13.4

All motorised craft must remain in the Marina, or on the Marina moorings, overnight to ensure that there is no visual impact for Villa Owners.

13.5

The use of jet skis and waterskiing around the Island is not permitted.

13.6

Every user of the Marina and Waterways enters, remains and departs from these areas at their own risk.

13.7

Large sailing craft over 18ft hull must be stored at the Marina when not in use. Storage fees will apply as advertised in the Marina.

13.8

When weather requires it, a temporary marina will be established on the south coast of the Island. The same rules as per the permanent Marina will apply.

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