Document:

ex103.htm

Exhibit 10.3

 

CONTRACT No 4

Investing по инвестированию строительства жилого дома

 

	City of Moscow 	 January 10, 2008.

 

Limited Liability Company «SOMO» (in Russian – “СОМО”), further called the "Builder", represented by the General Director Plavnik Roman Genrikhovich, acting on the basis of the Charter, on the one hand, and the Limited Liability Company “ICECOM” (In Russian -«АИСКОМ»), further called the "Investor", represented by the General Director Vohontsev Sergey Konstantinovich, acting on the basis of the Charter, on the other hand, together called "Parties", have executed the following Contract:

1.           SUBJECT OF THE CONTRACT

According to the present contract the Investor assumes liability to invest capital funds in the construction of the Project in the amount and based on the conditions stipulated by the present contract, and the Builder guarantees to develop the Project by using own and/or third-party contractors in accordance with Master Plan, and after completing of the construction to transfer the share of the Project further described in this contract back to the Investor.

 Both Parties are guided by the Federal law of the Russian Federation «About investment activity in the Russian Federation which is carried out in the form of capital investments» from 02.25.1999 39 – FЗ and positions of the present contract, when drafting and executing the present contract.

Project Description:

Residential apartment building with the built-in / attached commercial infrastructure, including parking lot, located at the construction address: Krasnodarskii region, city of Sochi, Khostinskii district, Kurortniy prospect, in area of an apartment building No 105/5 (further “Project”), namely (according to the Preliminary Project plan in the form of Exhibit 1 to the existing contract):

Total size of the project – 53 896 м3

Total size of the building 15 791 м2 (including basement and ground floor)

Total size of apartments – 8564 м2

Total area of balconies and loggias at apartments – 1403,7 м2

Total area of social infrastructure (where 2-levels parking lots for 94-car spaces, mini-market, beauty salon, fitness center, etc. – are located) – 4 165м2

Total area of hallways on each floor and corridors for common use – 1 658 м2

Total number of the apartments – 117, from which

- 1-bedroom – 56

- 2-bedroom – 24

- 3-bedroom – 31

- 4-bedroom – 2

- 5-bedroom – 4

 

  

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Total number of floors – 11 (including: 10-residential, 1-commercial).

 The right of the Builder to execute such transactions with the Investor is based on:

 

	
·  

	
The Resolution of the Head of Sochi No 73/12 от 05.02.2003 г. (Appendix No 2);

	
·  

	
 The Resolution of the Head of Sochi No 628 от 05.04.2006 г. (Appendix No 3);

	
·  

	
 The Lease Agreement No 4900003888 from 05.22.2006 года (Appendix No 4);

	
·  

	
The contract about transfer of the rights and responsibilities under the lease agreement of the land lot between ООО «SKAT+» и ООО «SOMO» от 09.14.2006 г. (Appendix No 5);

	
·  

	
The conclusion on accommodation of object of the construction, issued by Committee of Architecture and town-planning of Administration of Sochi of Krasnodarskii region (Appendix No 6);

	
·  

	
The town-planning plan of the land lot No1327 issued by Committee of Architecture and town-planning of Administration of Sochi of Krasnodarskii region (Appendix No 7);

	
·  

	
The Investment Contract in residential apartment building located: Kurortniy prospect, Khostinskii district of Sochi, between the Administration of the City and ООО «SOMO» No 03.3/154 от 08.06.2007 г. (Appendix No 8);

	
·  

	
The conclusion about engineering-geological conditions for the construction, issued by MUP of Sochi «Municipal institute of the master plan» (Appendix No 9).

          Al documents listed in section 1.5 are the essential part of this Contract.

2.  INVESTOR’S TERM SHEET.

 

 The total construction costs of the Project as of the date of the execution of this contract (before 01.10.2008 years), are defined by the MOU to carry out the related costs (Appendix 10), signed by both parties.

 

 The estimated total amount of financing of construction is 277 055 042,98 (two hundred seventy seven millions fifty five thousand forty two roubles and 98 kopeks) plus 50% (fifty percent) of the lease payments for using the land lot.

 

The total amount is based on the following costs:

Total cost of construction and infrastructure is 261 738 812,00 (two hundred sixty one million seven hundred thirty eight thousand eight hundred twelve roubles of 00 kopeks). The given cost is calculated according to the Local resource budget calculation as of 2 quarter 2007 (Appendix 11). The given cost may vary depending on actually executed works, change in costs of building materials, labor and other. Final cost will defined upon completion of the construction.

 

Total cost of the Master Plan (5,5 % from the total construction cost of the project) – 14 395 635,00 (Fourteen millions three hundred ninety five thousand six hundred thirty five roubles of 00 kopeks). The given sum may vary in accordance with the total cost of construction and infrastructure.

 

50 % from the amount of the lease payments for using the land lot, stipulated under the Lease Agreement No 4900003888 from 05.22.2006 (Appendix No 4).

 

  

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The amount of lease payments is defined annually in order stipulated by the Lease Agreement No 4900003888 from 22.05.2006 (Appendix No 4).

 

The amount of lease payments established at the moment of the conclusion of the present contract, and, accordingly, their part, which is a subject of compensation by the Investor agreed by the parties in the Appendix 4/1.

 

If the lease payment for the land lot will change the Builder must notify the Investor within 5 (five) business days. The parties, by executing the Additional Addendum to the present contract will establish the exact amount of payment, as well as terms of payment.

 

Total capital investment of the construction by the Investor is 50% (fifty percent) from the total amount of financing of the Project, which is equal to:

 

130 869 406,00 (Hundred thirty millions eight hundred sixty nine thousand four hundred six roubles of 00 kopecks) – 50 % from the total construction budget.

 

7 197 817,50 – (Seven millions hundred ninety seven thousand eight hundred seventeen roubles of 00 kopecks) – 50 % from the cost of Master Plan.

 

50 % lease payment for the land lot.

 

Total approximate amount of financing is 138 527 521,49 (Hundred thirty eight millions five hundred twenty seven thousand five hundred twenty one ruble and 49 kopecks) and 50 % of lease payment for the land lot. The said amount of financing is approximate and can be changed in cases stipulated by the present contract. If the total amount of financing will change it will require the additional agreement to the present contract to be drafted.

 

If the delay by the Investor to transfer capital funds will result the Builder under its obligations given to the third party-contractors of the Project to occur debts, including penalties and fees, the Investor will be responsible to pay such debts from the investment resources.

 

In result of realization of the investment project at the Builder the economy of the money resources directed by the Investor, such money resources not later than 15 (fifteen) days from the moment of detection of such economy is formed should be returned to the Investor, or under the agreement of parties the given money resources can be зачтены as the investment means which are a subject entering into the subsequent terms, the investments stipulated by the Schedule (Appendix 12).

 

The Builder confirms the paid expenses copies with the executed contracts, copies of payment documents and bank receipts, copies of certificates of the executed works, copies of accounts which the Builder monthly gives to the Investor. Copies of documents on the expenses, suffered by the Builder till the moment of the conclusion of the present contract (up to 10.01.2008) are transferred the Investor during 5-ти the working days from the moment of signing the existing agreement.

 

Specified in section 2.2. the amount of financing includes payment of rent of the ground area, the design-budget documentation, construction of Object, communications and other engineering constructions, accomplishments of adjoining territory, cost of the nature protection and other necessary works stipulated by the design-budget and allowing documentation.

 

The investor brings money resources on investment of construction in the volume stipulated section 2.3.4 of the present contract, and according to the Schedule of the investment, being an integral part of the present contract (Appendix 12). The schedule of investment is made by the Parties annually not later on January, 31st year for which financing is planned.

 

The schedule of investment for 2008 is made in view of that the first payment of the Investor should be made after 3 quarters 2008, but not later on October, 31st, 2008.

 

If necessary and under the written application of the Builder probably transfer of money resources by the Investor earlier or after the period of the financing stipulated by the schedule of payments.

 

Money resources can be listed as directly on the settlement account of the Builder, and under its written instruction to the third parties.

 

The fact of transfer of money resources the Investor will prove to be true copies of payment assignments with a mark of bank about execution and bank extracts. In the afternoon of execution of payment day of receipt of money resources on the settlement account of the Builder admits.

 

All calculations between the Parties are made in the Russian roubles.

 

  

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The payments received by the Builder or under its written instruction by the third parties within the limits of the present contract, are made out by the Certificate of verification.

 

The certificate of verification is made quarterly and subscribes the Parties. It should contain the instruction for the sums of the money resources listed by the Investor within the limits of the present contract on the end of quarter, with Appendixes of corresponding financial documents (all invoices, certificates of the executed works, payment assignments and extracts from bank). The certificate of verification is made with an accrued result.

3.  RIGHTS & RESPONCIBILITIES OF THE PARTIES

 Develop is responsible:

To provide with own forces or with attraction of contractors construction of Object in exact conformity with the design-budget documentation and in the constructions established by the schedule terms and performance of all kinds of works on construction of Object in full, and also on an accomplishment of territory adjoining to them, including all the works stipulated by documents on construction, and also other works which have been not mentioned in these documents, but necessary for a construction of Object and for its delivery when due hereunder the state commission.

 

To receive the sanction to construction and to carry out all necessary coordination with the authorized state bodies; to conclude the turnkey contract on construction of Object and the contract on rendering of services of the technical Customer.

 

To carry out the control over a course of construction, conformity of volumes and costs of actually executed works and the spent building materials to volumes and cost of works and the materials, shown in payment, and to volume of the investment means which are a subject transfer by the Investor.

 

The builder conducts the separate accounting and tax account of inhabited and uninhabited premises.

 

To inform the Investor under its requirement about the performance of works on construction of Object.

 

To use capital funds received from the Investor, on a special-purpose designation – on construction of Object.

 

Without the power of attorney to conduct common causes in a subject of the present Contract and to make all constructions of the transaction necessary for realization with the third parties.

 

Not later than 15 (fifteen) days from the moment of delivery of Object of the state commission, signing of the corresponding certificate and its input in operation to transfer to the possession of the Investor under the certificate of acceptance-transfer the share caused by the present contract in the Object, certain in view of positions of item 4.4, 4.5 present contracts, and also to make all the actions necessary for the state registration of the property right of the 

Investor on a share in Object.

 

Charges related to the state registration of the property right to a share in Object are born by the Investor.

Investor is responsible for:

To carry out transfer of investment means for construction of Object according to the schedule of payments (Appendix 12).

 

To bear expenses under the maintenance and operation of Object to proportionally size of a share of the Investor in Object from the moment of delivery of Object in operation.

 

To use Object according to its purpose.

 

The investor has the right to receive the information from the Builder about a course of performance of works on construction of Object.

 

  

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The preliminary consent of the Investor before registration in the property of a share in Object is not required. Registration is made according to правоустанавливающими documents and the present contract on investment by way of, established by the legislation of the Russian Federation.

 

The parties establish that the Object, and also the right to purchase of a share cannot serve in the right of the general property to it a subject of the mortgage till the moment of occurrence at the Parties of the property right.

 

About all changes in payment, post and other requisites of the Party are obliged immediately (during 3 (three) the working days) to inform each other.

 

The investor has the right to concede according to the current legislation, from the notice of the Builder, to the third parties in full or in part the competences under the present Contract unilaterally under contracts of a concession of the rights of investment.

 

Acting as the Investor on construction of Object, in case of the termination of construction of Object, the Investor gets the right to a part of not completed object, to proportionally brought investments.

 

4. SCHEDULE OF REALIZATION OF THE DEVELOPMENT AND THE ORDER OF COMPLETION OF THE INVESTMENT PROJECT.

Completion date of construction of Object is approximately 2 quarter 2010. In case of need this term can be prolonged by the Parties.

 

Upon completion of the construction and input of Object in operation of the Party acquire the right of the general share property to Object.

 

The share of the Investor in the equity of the Project makes 50% (fifty percent) and is defined according to Appendix No 4 to the existing agreement.

 

According to item 2.4 of the Investment Contract between Administration of Sochi and the Builder, the Builder participates in development of a social, engineering and transport infrastructure of Sochi by transfer to the municipal property (a share of city) 9,4 % (nine whole four tenth percent) total areas of Object. Hence, transfer of a share of the Investor will be carried out after transfer to the municipal property of a share of city and, accordingly, the share of the Investor certain according to item 4.3. The present contract should be reduced by a share of city.

 

In case of purchase by the Builder of a share of city in the Project (as stipulated in item 2.11 of the Investment Contracts), the Investor finances such expenses at a rate of 50% (fifty percent). Thus the Builder gives to the Investor all documents according to which cost of a share of city is defined, and the documents confirming its actual payment.

 

Not later than 15 (fifteen) days from the moment of delivery of the Project to the state commission, signing of the corresponding certificate and its exploitation transfer to the possession the Investor under the certificate of acceptance-transfer the share caused by the present contract in the Object, certain in view of positions of item 4.4, 4.5 present contracts, and also to make all the actions necessary for the state registration of the property right of the Investor on a share in Object.

 

All costs related to the state registration of the property right to a share in the general property are carried by the Investor.

 

5.  DEVELOPER’S COMPENSATION.

 

Under the present contract the Investor pays compensation for performance of the obligations assigned to the Builder at a rate of 159 300 (hundred fifty nine thousand three hundred roubles of 00 kopecks), including the VAT of 18 %, in a month.

 

The compensation to the Builder is paid starting 10.01.2008.

 

The compensation specified in item 5.1 of the present contract, the Investor lists on the settlement account of the Builder monthly not later than 15 dates, following for expired.

 

The given funds are not investment, are considered by the Builder separately and spent by it independently under his discretion.

 

 

  

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6.  FORCE-MAJEUR CIRCUMSTANCES

The parties under the present Contract are relieved from the responsibility for partial or full default of obligations under the present Contract if it was consequence of force-majeur circumstances. Thus term of performance of obligations is removed in proportion to time during which circumstances or the consequences caused by these circumstances operated.

 «Форс-мажор» означает:

Any Resolution, order, written directive of any State organ, under the jurisdiction of which is any Side of the Contract or the Object, not depending on the form of the document: the law, the Resolution or written directive of competent State organ, under the jurisdiction of which is any Side of the Contract, which hinders from the fulfillment of the Contract by the Sides.

 

Any revolt, rebellion confusion or military actions in state scale.

 

The conflagrations, floods and other natural disasters, directly influenced on the construction.

 

Any similar events which are beyond the rational control of Sides or Side.

 

The presence of such circumstances are to be proved by the document, issued by corresponding authorized agency.

 

If force-majeur circumstances last more than three months, the Sides have right to cancel the Contract untimely.

7.  TERMS OF THE AGREEMENT.

This Contract becomes active from the moment of signing it by the Sides.

 

The period of validity of the Contract is terminated from the moment of fulfillment of the Sides their obligations, provided by this Contract, putting the Object to the State Commission and State Registration of property right of Investor according the conditions of the Contract and total settlement of accounts between the Sides.

8.  QUALITY OF THE PROJECT. QUALITY GUARANTEES.

The quality of spaces of the Object, transferred to the Investor by the Builder according this Contract, is to be in agreement of project documentation of the Object, CN&R and another demand in construction area.

The warranty period is three years from the moment of signing of the Act of transfer-receipt of the share in the Object. All the defects, found out during this period, which couldn’t be find out while inspection of the Object and signing the transfer-receipt Act, are to be eliminated by the Builder by himself or obtained forces in 30 days from the Investor’s information of him.

9.  RESOLUTION OF DISPUTES.

All other issues, which are not determined in the Contract, the Sides settle according the legislation of Russian Federation.

 

The Sides will settle the disputes by negotiations. The negotiation means as oral consultations of Sides, as the exchange the messages between the Sides.

 

In case of non-reaching of the agreement in the disputes in course of negotiations, the Sides can take it into court under the rules of jurisdiction.

 

 

  

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10.  OTHER CONDITIONS.

Any information about the financial position and Contract conditions with the third persons, taking part in the construction of the Object, will be confidential and non-disclosure. Other conditions of confidentiality may be fixed under the demand of any Side.

 

All the changes and additions are formalized by additional contracts between Sides in written form, which is an integral part of the Contract.

 

This Contract is worked out in 7(seven) pages, per one to each Side. All the copies have equal legal force and are original.

11.  APPENDEXIES TO THE CONTRACT.

 Appendix 1 – «the Preliminary Project plan»;

 Appendix 2 – the Decision of the Chapter of Sochi 73/12 from 05.02.2003;

 Appendix 3 – the Decision of the Chapter of Sochi 628 from 05.04.2006;

 Appendix 4 – the Contract about granting the ground area in using on a hire basis (the contract of rent) 4900003888 from 22.05.2006 years;

 Appendix 4/1 – « the Agreement on definition of a part of a rent for using the ground area, a subject compensation due to means of the Investor »;

 Appendix 5 – the Contract about transfer of the rights and duties under the contract of rent of the ground area between Open Company " SLOPE " and Open Company " СОМО " from 14.09.2006;

 Appendix 6 – the Conclusion on accommodation of object of the construction, given out by Committee of architecture and town-planning of Administration of Sochi of Krasnodar territory;

 Appendix 7 - the town-planning plan of the ground area 1327 which have been given out by Committee of architecture and town-planning of Administration of Sochi of Krasnodar territory;

 Appendix 8 – the Contract of investment in construction of a multiroom apartment house on street the Resort prospectus in area Hostinskom of Sochi between Administration of city Sochi and Open Company " СОМО " 03.3/154 from 06.08.2007;

 Appendix 9 – the Conclusion about engineering-geological conditions for the construction, given out МУП of Sochi « Municipal institute of the general plan».

 Appendix 10 – «the Report of the coordination of expenses for construction of the Object, suffered by the Builder for the conclusions of the contract of investment (up to 09.10.2008)».

 Appendix 11 – «local resource budget calculatio ».

 Appendix 12 – «the Schedule of investment».

 Appendix 13 – «Shares of the Investor».

 The specified appendices are an integral part of the present contract.

 

12.  ADDRESSES AND REQUISITES OF THE PARTIES

 

10. SIGNATURES OF THE PARTIES:

 

	
BUILDER:

 

 

General Director 

ООО «SOMO»

	 	 	
 INVESTOR:

 

 

General Director

ООО «ICECOM»

 

 

	 
	
/s/ Plavnik R.G./  

	 	 	
/s/ Vokhontsev S.К.

	 
	(signature) 	 	 	
(signature)

	 
	
м.p.

	 	 	
м.p.

	 

 

 

7Unassociated Document

Exhibit 10.4

 

Contract granting the rights to lease the land (Leasing Agreement)

Russian Federation, Krasnodar Region, City of Sochi.

No 4900003888         dated May 22, 2006

Administration of City of Sochi (further called the “Landlord”), represented by  the Chairman of Administration Properties Management Committee of the city of Sochi, Armen Sergeevich Melkumov, from one site, acting on the basis of the Decision of Mayor of Sochi from 04/28/2006 No890 “About the delegation of powers on the conclusion of contracts of lease of the ground areas”, based on the Decision  of Mayor of Sochi from 12/10/2001 No 697 “ about transfer of functions concerning regulation of land-legal relations to committee on management of property of Sochi», the decision of Governor of Krasnodar Region from 05/18/2002 No 529 “About the order of definition of the size of a lease for the land of a state ownership in territory of Krasnodar territory”, decision of the Mayor of Sochi from 10/02/2002 No 593 “About the order of definition of the size of a lease for the land of a state ownership in territory of Krasnodar territory”, (further called the "Tenant"), represented by the Director Victoria Anatolievna Sarakashish, acting on the basis of the Charter, from another site, and in accordance with the decision of Mayor of Sochi from 02/05/2003 No73/12, from 04/05/2006 No628 entered into the following agreement:

1. SUBJECT OF THE CONTRACT.

1.1. Based on this contract Landlord is transferring, and Tenant is leasing a lot of land equal to 3,706 (three thousand seven hundred six) sq.m that will be used for the development of 84-units residential apartment building with commercial offices on the first floor, as well as attached to the building, store and outside general-use parking lot for 30 cars, located at: Kurortniy prospect, near by the building No 105/5 in Khostinskii region, city of Sochi. The lot of the land named above is located within the city limits, at the second zone of a sanitary protection of a resort. Zoning of the lot of the land – for residential settlement (construction). The cadastre No 23:49:03 02 031:0093.

1.2.           The lot of the land mentioned in paragraph 1.1 has been given to the Tenant on March 1, 2003 without any other documents related to the transfer of this asset.

1.3.           The lot of the land is meant to be used for the development of 84-units residential apartment building with commercial offices on the first floor, as well as attached to the building, store and outside general-use parking lot for 30 cars

Further development of buildings (new), as well as renovation and functional changes of the existing buildings and other objects are not permitted without special approving documentation.

2. TERMS AND CONDITIONS OF THE CONTRACT.

2.1.           The existing contract considered to be valid from the date of the government registration and up until March 1, 2011.

 

2.2.           The termination of this Contract does not relieve parties from the responsibility for its infringement.

 

2.3.           Conditions of the present contract extend on legal relations of the parties since March, 1st, 2006.

 

 

  

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3. LEASE PAYMENT.

3.1. Calculation of a lease payment is valid from March, 1st, till March, 1st, 2011.

 

3.2. The lease amount for the lot of the land is specified in addendum to this contract.

 

3.3. Following the existing contract lease payment has to be made for each quarter and presented as a separate before 10th of the last month of the quarter: lease and penalties have to be paid separately. All payments for 4th quarter have to be made before November 10th of the existing year. Lease payment by one payment document under the several contracts is not allowed.

 

3.4.           Lease payment and penalties are being paid by the method of money transfer into the following bank account:

Account No 401 018 103 000 000 100 13 BIK 040349001 GRKC GU Bank of Russia in Krasnodar Region, city of Krasnodar. Beneficiary’s INN: 230 807 75 53 UFK in Krasnodar Region (Department of Property Relations of Krasnodar Region). Payment code - 82111105012010012120.  OKADO code - 03426000000. KPP 230801001.)

 

3.5.           The amount of annual lease payment is set and effective from the date of this contract; in the future this amount can be change by the Landlord unilaterally based on inflation, price elasticity, changes and addendums to the regulatory and legal norms of Russian Federation, Krasnodar Region and local municipality, as well as it stated in section 5.2.17. Changes in the amount of lease payment are the subject to the addendum to this contract that has to be signed by both parties. In case Tenant will not be willing to sign this addendum, it has to be signed by the Landlord only.

 

3.6.           The lease payment is being calculated based on the amount of annual lease payment from the actual date of transfer of the land lot for each day of the actual use of the land.

 

3.7.           The fact that the Tenant is not using the land does release him from making lease payments.

4.  LANDLORD: RIGHTS AND RESPONSIBILITIES.

4.1.           Landlord’s rights:

 

4.1.1.           Landlord may require to cancel the existing contract in cases when the lot of land is being misused for the purposes that are not covered by this contract, as well in other uses that may cause the damage of the land, not 

payment of lease fee for over 6 months, plus other instances covered by the law and other legal acts.

 

4.1.2.           Landlord has an unlimited access to the lot of land leased by the Tenant with the purpose to observing the terms and conditions of this contract applicable to the use of the lot.

 

4.1.3.           Landlord has the right to be compensated for the losses resulting from deterioration and ruining the ecological environment of the lot of land based on Tenant’s operations on the lot, as well as other bases covered by the law of Russian Federation.

 

4.1.4.           Landlord has the unilateral right to notifying the Tenant about all changes and addendums to this contract followed by the changes in the Russian Federation law.

 

4.1.5.           Landlord has the right to control over use and security of the site.

4.2.           Tenant’s rights:

 

4.2.1.           Fulfill all obligations within the existing contract.

 

4.2.2.           To not interfere with the Landlord administrative activities if it does not contradict conditions of the existing contract and the curlease legislation.

 

4.2.3.           Do not transfer the rights to the third parties on use of a site, the natural resources which are being on a site without an agreement of the tenant.

 

4.2.4.   Be informed in a timely manner on changes the lease payment in writing by the notice or publication in periodicals.

5. THE RIGHTS AND RESPONSIBILITIES OF THE PARTIES.

5.1. The tenant has the following rights:

 

5.1.1. To use the land lot in accordance to conditions of the present contract.

 

  

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5.1.2. At the conclusion of the contract for the term of till five years, only with the consent of арендодателя, to transfer the rights and responsibilities under the contract to the third party, including transferring the lease rights to the mortgage and to bring them as the contribution in the equity capital of any business entities or societies or a share in a operating co-op.

5.1.3. To transfer in sublease the land lot or its part to individuals or institutions based on the conditions which are not beyond the present contract, only with the consent of the Landlord.

5.1.4. After the expiration of this contract in the priority order before other persons to complete the contract of lease based on the new terms and conditions agreed by the parties on the written notice sent to the Landlord not later than for three months prior to the contract term expirations, except for the cases stipulated by existing legislation of the Russian Federation.

5.1.5. To demand early cancellation of the contract in cases, when:

- Landlord creates obstacles in the use of the site;

- The given site has the damages that prevent from using this site, about which Tenant did not know at the moment of the signing of the contract;

5.1.6. Carrying independently operating activities on the site according to the general purposes and conditions based on which the site has been given.

5.2. The tenant is obliged:

 

5.2.1. To carry out in full all treaty provisions.

5.2.2. To observe the established mode of use of the land of the second zone of sanitary protection of the Resort, according to the mode of use established by the legislation about specially protected natural habitats (park zones, etc.).

5.2.3.В течение двух месяцев со дня подписания договора произвести его государственную регистрацию в главном управлении федеральной регистрационной службы по Краснодарскому краю. После государственной регистрации в десятидневный   срок представить арендодателю подлинник зарегистрированного договора аренды земли.

5.2.3. Within two months from the date of signing of this contract to make its State Registration in central administrative board of federal registration service on Krasnodarskii region. After the State Registration in ten-day period present the original of the registered contract of lease of the land to the Landlord.

5.2.5.Каждый   год   в   период  с   1   декабря   по   1   марта   производить  сверку   платежей   с

Арендодателем,  с  пересмотром  арендных  платежей  и  методики  расчета в соответствии  с

порядком, установленным п.3.5.

5.2.4. In due time to make lease payment in full for the site according to item 3 of the existing contract without getting invoices from the Landlord.

5.2.5. Every year during from December, 1 to March, 1 to verify payments received with the Landlord, and further revise lease payments and payment procedures according to the order established in item 3.5.

5.2.6. Within 10 days after publication in periodicals by Landlord the information on all changes of base rates of a lease, correction factors to it, payment procedures or receptions of the written notices, must address the Landlord for any recalculation of the lease payment and signing of the amendment. Before signing the amendment the tenant independently settles an invoice and makes payments based on new rates.

 

  

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5.2.8.При  эксплуатации  земельного  участка  строго  соблюдать  требования   федерального, краевого   законодательства и нормативно-правовых актов органов местного самоуправления г. Сочи.

5.2.7. By the landlord demand to present a copy of the payment document, confirming a transfer of a lease payment.

5.2.8. During the operations on the land lot strictly comply with requirements of federal, regional legislation and regulatory and legal acts of institutions of local government of Sochi.

5.2.9. To use the land lot strictly according to a special-purpose designation reviewed in stipulations §§ 1.1, 1.3, in the ways that should not harm surrounded environment, including the land and its natural resources.

5.2.10.Беспрепятственно допускать на участок арендодателя, его законных представителей и органы контроля  над использованием  и  охраной  земель с  целью его осмотра на предмет соблюдения условий настоящего договора.

5.2.10. Allow the Landlord on the site at any time, as well as his lawful representatives and controlling bodies over use and protection of the land with objective of its survey related to the compliances with conditions of the present contract.

5.2.11.Не  допускать  действий,   которые   могут  привести   к  ухудшению  состояния   земли, экологической и санитарной обстановке города, не совершать нарушения прав и законных интересов других землепользователей, землевладельцев и арендаторов земельных участков, не допускать нарушения функционирования  находящихся в пределах границ участка инженерных коммуникаций, сетей, сооружений, дорог, проездов и т.д.

5.2.11. Do not allow actions that can lead to deterioration of the land conditions, the ecological and sanitary conditions of the city, not make any infringements of the rights and legal interests of other land users, land owners and tenants of the land areas, not to allow infringements of functioning being within the limits of borders of a site engineering communications, networks, constructions, roads, overpasses, etc.

5.2.12. To eliminate at own expense the changes made on a site without the consent of the Landlord, under its first (written) requirement.

5.2.13. To compensate losses to the Landlord in case of deterioration of qualitative characteristics of the Site and the ecological conditions caused as a result of economic and others Activity.

5.2.14. To satisfy requirements of the corresponding governing bodies of a condition of operation of underground and on the ground communications, allow without any limitations on the site governing bodies to do all the works related to their repair, service, operation and maintenance, do not allow actions,  including shoddy constructions, corridors for engineering networks and the communications which are running through a site.

5.2.15. To carry out undertakings on rejuvenation of the land lot, to perform works that improve the territory.

5.2.16. To develop residential and other buildings, structures, constructions according to the special-purpose of the use of the land lot, only with the consent of the Landlord and at the availability of the appropriating allowing documentation, which needs to comply with requirements of the town-planning rules, building, ecological, sanitary-and-hygienic, fire-prevention and other rules, specifications.

 

 

  

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5.2.17. During the change of a special-purpose designation of buildings, structures, constructions (or their parts), located on a site, one must notify the Landlord for modifications in the contract and for recalculation of a lease.

5.2.18. In case of sale of the object of the real estate or its part, being on the land lot leased under the given contract, tenants are obliged to notify the landlord in writing two weeks prior to the event.

5.2.19. In case of transferring of the rights to a building, a structure, a construction, or facility in them to another individual, one must make lease payment prior to the cancellation of the contract.

5.2.20. In case of transfer of the rights and responsibilities under this lease contract to the third party, including the transfer of the lease rights in the mortgage and entering as the contribution to the authorized capital in another business entity or organization, or the advance payment in operating co-op, one must notify in writing, within ten days the landlord with the instruction of the name and requisites of the individual to which the rights were transferred, dates of their transition and legal land of transfer the rights and responsibilities the third parties with the exhibit of material evidence (for the contracts signed for the term of more than five years).

5.2.21. To inform the landlord in writing not later than for three months about the forthcoming clearance of the land lot both in connection with the termination of validity of the contract, and at its clearing prior to termination of this contract.

5.2.22. At the termination of validity of the contract or its cancellation tenants are obliged transfer the site to the landlord in its original condition, after releasing it three days before.

5.2.23. To send the written notice to the landlord not less than ninety calendar days prior to the termination of validity the contract specified in item 2.1. of the contract about cancellation of the lease contract, or about the signing lease contract for a new term.

5.2.24. In cases of change of the name, the legal address, contact phones, and also changes of bank and other requisites, one must notify the landlord in writing two weeks prior to the event;

5.2.25. In case of liquidation of the legal entity (Tenant) by the way based on the item 61 ГК the Russian Federation last is obligated during 7 days from the date of decision-making on liquidation to notify in writing the landlord and also to make all outstanding lease payments into the budget based on the amount of the lease before the cancellation of the contract;

5.2.26.  Landlord is obligated to obey all laws and regulations of the legal system of Russian Federation.

5.3. The tenant has not the right:

 

5.3.1. To transfer the leased site in sublease without the written approval of the landlord.

 

5.3.2. To break the existing water-flow and to change a cross-section structure of the Site without the permission of the appropriate governing bodies.

5.3.3. To break engineering networks and the communications, which are being or passing through the site, and also to block corridors of passage of engineering networks and communications with temporary capital buildings and constructions without the coordination when due hereunder.

 

 

  

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5.3.4.Использовать возведенные здания, строения, сооружения до получения утвержденного

акта приемки объекта государственной комиссией.

5.3.4. To use the developed buildings, structures, constructions before the approval of the certificate of acceptance of object by the state commission.

6. The responsibilities of the parties.

 

6.1. For infringement of treaty provisions the guilty party bears civil, administrative and the criminal liability stipulated by the legislation of the Russian Federation.

 

6.2. For infringement of terms of lease payment under the contract, established in item 3.2. the tenant pays late fees to the landlord at the rate of 0,05 % from the size of late payment amount of the lease for each calendar day of delay.

6.3. After term of the present contract all buildings, constructions, constructions and other objects developed without the corresponding permits and the consent of the landlord, will become a property of the landlord.

6.4. Force-majeur circumstances.

The parties are relieved from the responsibility for default of obligations under the present contract if such default was consequence of action of force majeure: flooding, earthquakes, a landslip and other acts of nature, and also wars. In case of action of the above-stated circumstances over two months, the present contract has the right to terminate sides.

The burden that proofs existence of force-majeur circumstances become a measure of the party, which requires to be freed from the responsibility due to their approach.

6.5. In case of late return by the tenant of the site to the landlord after the termination of this contract, the tenant pays a lease for all time of delay.

7. Consideration and settlement of disputes.

 

7.1. Agrarian and the receivership proceeding arising during realization of the present contract, are resolved according to the legislation of the Russian Federation.

8. Change, cancellation and the termination of the contract.

 

8.1. Any changes and additions to the present contract (except for §3.5.) are made in writing, signed by both parties and are a subject to the state registration unilaterally.

In default or evasion of the party from signing the additional agreement dispute is considered by way of, established §7.1 of this contract.

8.2. Change of terms of this contract, its cancellation and the termination is allowed in cases of default to the requirements described by item 4 and 5 of the existing contracts under the agreement of parties or in the court of law.

8.3. Termination of the contract under the initiative of the landlord is allowed in cases, stipulated by the existing legislation of the Russian Federation.

8.4. The term of this contract stops upon expiration of the term specified in item 2.1. of the present contract. The contract is not a subject to prolongation, at the same time the tenant has the right to raise issue of the renewal of the contract for new term.

 

8.5. At the termination of the term of the contract or its cancellation the tenant is obliged to transfer

the site to the landlord in a condition and quality is not worse initial without any others documents on the property, having released it in time no more than three days.

 

 

  

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9. Other conditions.

 

9.1. Non-use of the land lot within the limits of the construction permit is regarded as wrongdoing  and is the basis for recalculation lease payments, which may include the corresponding correction factor (except for cases, when a longer term is stipulated by the Contract).

 

9.2. The mutual relations of the parties which have been not settled by the present contract, are regulated by the existing legislation.

9.3. The parties confirm and guarantee, that at date of signing the present contract there are no circumstances of any sort that can form the basis for termination of the contract. Each of the parties confirms, that they have received all necessary sanctions for the introduction into the present contract of lease, also that the persons who have signed it, are authorized on it.

 

9.4. The present contract is not a subject to publicity.

 

9.5. The expenses related with the state registration of the present contract, as well as changes and additions to it are assigned to the tenant.

 

9.6. The present contract is made in four copies having an equal legal validity, also are given:

 

1 copy - to the Tenant;

2 copy – to the Landlord;

3 copy - to the state registration agency;

4 copy - Management Committee of property of administration of city Sochi.

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