Rakesh Kumar Associates House Number 27 Friebel Estate, Maseru, Lesotho Phone +266 58850502 Telex +266 456

7890 Fax +266 456 7890 Email: anamika_rakesh@hotmail.com Ref: RK/ARB/APRIL/1

February 9, 2012

Mrs. Sophia Mohapi CEO, MCA-Lesotho Post Office Building Kingway Road Maseru 100 Lesotho Phone: +266 5902476 Fax: +266 45876255

Dear Mrs. Mohapi:

Arbitration: Millennium Challenge Account Lesotho and Lesotho Steel Products (Pty) Ltd.

Thanks for your letter dated 6th January 2011 appointing me the arbitrator for the dispute between Millennium Challenge Account Lesotho and Lesotho Steel Products (Pty) Ltd. related to works Contract of Design, Renovation and

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February 9, 2012

Expansion to Integrated Out-Patient Department at 14 Hospitals throughout Lesotho (HS-A-25-10).

I hereby accept my appointment as an arbitrator for the dispute between Millennium Challenge Account Lesotho and Lesotho Steel Products (Pty) Ltd.

I would like to propose the dates for preliminary meeting in the 1 st week of July 2011 (Preferably 4th July 2011 from 9 AM at Lesotho Sun, Maseru), and would like you to confirm the date in consultation with other party. In case the date, time and location is not acceptable please let me know, so that we can finalize other date, time and location.

For better time management of the arbitration proceeding and to identify the real issues in the dispute, I would like to propose the agenda for the preliminary meeting that includes the following:

1. To confirm that the dispute falls within scope of arbitration agreement. 2. To update my self about the scope and circumstances related to arbitration, so that I will be better aware of circumstances that may influence my impartiality. 3. To get confirmation of my appointment from other party too. 4. To get confirmation of my fee from both the party.

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February 9, 2012

5. To confirm the mode of guaranty my payment fee, which parties will have to pay against my service. 6. To confirm jurisdiction applicable to the arbitration proceedings. 7. To finalize the procedure (procedure rule) for arbitration. 8. To determine that the arbitration will be confidential or not? 9. To determine the mode of submission of the document such as email, post or fax. 10. To determine how the documents will be exchanged between parties and arbitrator. 11. To determine the timeline for arbitration proceeding and arbitration hearing dates. 12. To determine location and places of arbitration hearing. 13. To determine the list of witness. 14. To determine need of any inspection, and if required its timing. 15. To determine the deadline for submission of documents by the parties. 16. Other points which the parties or arbitrator may find important to discuss and determine.

Though I received your letter for appointing me as arbitrator, I did not get the confirmation that both parties are in agreement with my proposed fee, or not. Hence I would like to receive confirmation of agreement of my fee from both parties during preliminary meeting. The details of fee is attached herewith this letter.

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February 9, 2012

I have written a similar letter to the attorney of Lesotho Steel Products (Pty) Ltd. and copied to you.

I declare herewith that in my present knowledge, I have never been associated with any parties to contract, and be able to discharge my duties without any bias.

I would like the parties to follow the rules of natural justice and hence request you that while communicating with me, a copy must be send to other party and telephonic communication must be avoided, except where unavoidable.

Please acknowledge the receipt of this letter.

Sincerely yours,

Rakesh Kumar Arbitrator, House Number 27, Friebel Estate Maseru Lesotho Email: anamika_rakesh@hotmail.com

CC: Attorney, Lesotho Steel Products (Pty) Ltd. Attachment: Fee Detail

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Fee Detail:

Remuneration Daily rate for hearing: R3200 per day, for service provided less than a day, the hourly rate will be based R400 per hours. Daily rate for any other activity (except hearing) related to arbitration: R350 per hour.

Reimbursable: Subsistence Allowance (Including food and lodging): R 900 per night. Local Transportation: R 5 per Km. Cost of Typing, Printing and binding of award: R20 Per Page Photocopying: R 1.5 per page Transmitting or receiving fax: R 5 per page Any other expenditure related to arbitration such as cost of posting, telephone, internet etc. (As per actual).

Note: The rates states above are excluding VAT, which will be added at the time of invoicing.

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Conditions:

1.

In case, the parties reserve my time for any event related to arbitration proceeding, and if notice/information of cancellation of that event comes later than ten days, before the start of reserved time. I will charge at R 175 per hour for the reserved time.

2.

If party/parties wishes to call for additional meeting from what has been agreed, they must provide ten week notice.

3.

If due to any reason party/parties requests courts for the removal of arbitrator (me), I will be paid for all my services which I have performed till date of court order.

4.

If my appointment is terminated due to my inability to act for reasons beyond my control or mutual agreement by the parties, I will not be liable for any loss to the party/parties, with respect to any expenditure made by the party related to arbitration proceedings.

5.

The fees quoted are valid for one year from the date of submission of my proposal, in case the arbitration proceeding goes longer than one year, due to any reason, a 10% increase in fee per annum will apply.

6. The parties by proceeding with the arbitration confirm by there act, that the fee proposed by me is acceptable to them.
7.

The parties must furnish guarantee for the payment of my fee against the service provided by me.

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The claimant must pay an advance payment of R 5000, within 15 days from the issue of this letter.

9. Any other cost not stated above and to be incurred in connection with arbitration proceeding will be born by the parties.