Document:

exhibit48.htm

  

  

  

EXHIBIT 4.8

SIXTH AGREEMENT FOR THE IMPLEMENTATION OF AMENDMENTS

----TO THE CORPORATE SERVICES MASTER AGREEMENT----

Agreement made in the City of Buenos Aires on the 12th day of November of 2013 by and between:

(i) CRESUD S.A.C.I.F. y A., domiciled at Moreno 877, Piso 23 in the Autonomous City of Buenos Aires, represented hereat by Messrs Eduardo Sergio ELSZTAIN and Saúl ZANG in their capacities as Attorneys-in-fact (hereinafter “CRESUD”) as party of the one part;

(ii) Alto Palermo S.A. (APSA), domiciled at Moreno 877, Piso 22 in the Autonomous City of Buenos Aires, represented hereat by Messrs Alejandro Gustavo ELSZTAIN and David Alberto PEREDNIK in their capacities as Attorneys-in-fact (hereinafter “APSA”), as party of the second part, and

(iii) IRSA Inversiones y Representaciones Sociedad Anónima, domiciled at Bolívar 108, Piso 1o in the Autonomous City of Buenos Aires and having established domicile for purposes hereof at Moreno 877, Piso 22 in the Autonomous City of Buenos Aires, represented hereat by Messrs. José Luis RINALDINI and Gastón Armando LERNOUD in their capacities as Attorneys-in-fact, as party of the third part (hereinafter “IRSA” and collectively with CRESUD and APSA designated as “THE PARTIES”).

WHEREAS:

(i) On June 30, 2004 THE PARTIES executed a Master Agreement for the Exchange of Corporate Services (hereinafter “the Master Agreement”);

(ii) On August 23, 2007 THE PARTIES executed the first Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “First Agreement”), whereby certain amendments were introduced to the Areas of Exchange of Corporate Services and the Cost Distribution Bases, and new Individually Responsible Persons were appointed;

(iii) On August 14, 2008 and November 27, 2009, THE PARTIES executed the Second Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the "Second Agreement”) and the Third Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “Third Agreement”), respectively, whereby new amendments were introduced to the Areas of Exchange of Corporate Services and the Cost Distribution Bases;

(iv) On March 12, 2010, THE PARTIES executed an Addendum to the Master Agreement for the Exchange of Corporate Services (hereinafter the “Addendum”) whereby THE PARTIES agree to unify in CRESUD the services of the Area of Exchange of Corporate Services, to the effect of which the employment agreements of most of the employees of such areas were transferred and the procedure to allocate the costs of potential labor expenses arising from retirement of employees was established;

(v) On July 11, 2011, THE PARTIES executed the Fourth Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the "Fourth Agreement”), and on October 15, 2012, THE PARTIES executed the Fifth Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the "Fifth Agreement" and together with the First Agreement, the Second Agreement, the Third Agreement, and the Fourth Agreement, the “Agreements”), whereby new amendments were introduced to the Areas of Exchange of Corporate Services and the Cost Distribution Bases;

(vi) THE PARTIES have implemented the Master Agreement based on an Implementation Manual updated by Deloitte & Co. S.R.L., (hereinafter “Deloitte”) on February 11, 2008;

(vii) In accordance with the recommendations made by Deloitte on its semi-annual reports, new operational changes have been implemented in the Areas of Exchange of Corporate Services and the Cost Distribution Bases starting in July 2012, which THE PARTIES wish to acknowledge in writing;

(viii) In addition, pursuant to the modifications of the accounting standards in force in Argentina, THE PARTIES believe it is advisable to amend certain premises established in the Master Agreement;

(ix) THE PARTIES have disclosed the content of the SIXTH AGREEMENT FOR THE IMPLEMENTATION OF AMENDMENTS TO THE CORPORATE SERVICES MASTER AGREEMENT (hereinafter the “Sixth Agreement”) to their respective Audit Committees;

(x) The Board of Directors of APSA, CRESUD and IRSA approved the Sixth Agreement at the meeting held on November 12, 2013;

NOW IN CONSIDERATION OF THE FOREGOING, THE PARTIES hereby agree to execute this Sixth Agreement subject to the following terms and conditions:

ONE: THE PARTIES ratify that the Areas (as defined in the Master Agreement) and the calculation method applicable to the Exchange of Operational Services (also as defined in the Master Agreement) have been changed as from the dates listed below, amending therefore Exhibits I and II, as amended by the Agreements, to the Master Agreement as per the following detail:

(i) Starting in July 2012, a decision was made to change the distribution method applicable to the Insurance Area, and to amend Exhibit II accordingly so that as from such date it shall be made up as detailed in the new Exhibit II;

(ii) Starting in July 2012, a decision was made to change the name of the Hotels & Tourism Area to the name of Hotels, and the distribution method for such Area was also changed, hence amending Exhibit I and Exhibit II so that as from such date they shall be made up as detailed in the new Exhibit I and Exhibit II;

(iii) Starting in July 2012, in relation to the Finance Area: (a) the weighting of each Department was changed in the distribution method; (b) the Financial Analysis Sector was added; and (c) the name of the Business Analysis Department was changed to Planning Department and the distribution method was also changed, hence amending Exhibit I and Exhibit II so that as from such date they shall be made up as detailed in the new Exhibit I and Exhibit II;

(iv) Starting in July 2012 the distribution method applicable to the Financial Management Department of the Finance Area was changed to establish that total assets weighted at 40% and total liabilities weighted at 60% would be taken as a basis. Later, in January 2013 the distribution method applicable to the Financial Management Department of the Finance Area was changed back to the distribution method used before the modification in July 2012, so that during the period from July 2012 to January 2013, the distribution method used for the Financial Management Department was as specified in this clause and from January 2013 it was as specified in the new Exhibit II;

(v) Starting in July 2012 and in relation to the Technical, Infrastructure and Services, Purchases, Architecture and Design and Development and Works Area, the distribution method applicable to the Technical, Infrastructure and Services Department and the Planning and Control and Third Parties’ Services Divisions was changed, hence amending Exhibit II accordingly such that as from July 2012, it shall be made up as detailed in the new Exhibit II;

(vi) Starting in July 2012, a decision was made to include the Audit Committee Area within the Areas of Exchange, and Exhibit I and Exhibit II were amended accordingly so that as from July 2012, they shall be made up as detailed in the new Exhibit I and II;

(vii) Starting in July 2012 and in relation to the Management and Control Area a decision was made as follows: (a) to change the distribution method applicable to the Area; (b) to include the Shared Services Center Department (CSC); (c) to exclude the Accounting and Administrative Operations Department, establishing that the Accounting and Reporting Division would become an Area Department and that the Administrative Operations Division would become a Division within the Shared Services Center Department, in both cases subject to a new distribution method; (d) to exclude the Budget and Management Control Department and to include the Budget and Global Management Control Sector of the latter Department as a new Area Sector, also changing the distribution method (tasks performed to each company); (e) to exclude the Process Quality Division from the Systems and Technology Department, and to include it as a Division of the Shared Services Center Department, further adding to the Process Quality Division the provision of corporate services from the former Master Data Sector; (f) to exclude the Special Project and Control Sector and the Systems and Technology Department and include them as Divisions within the Shared Services Center Department, hence changing the method of distribution of costs for such new Divisions. In addition, the Systems and Technology Division adds the provision of corporate services from the former Information Security Sector; (g) to add the Business Operation, HHRR Shared Services Center Divisions and the Budget and Management Control Shared Services Center Sector to the Shared Services Center Department. In January 2013 the distribution method applicable to the Budget and Global Management Control Sector was changed. As a result of the foregoing, Exhibit II was amended accordingly so that as from July 2012 it shall be made up as detailed in the new Exhibit II, except for the distribution method applicable to the Budget and Global Management Control Sector which, during the period from July 2012 to January 2013, shall be as detailed in this clause and from January 2013 it shall be the one added to the new Exhibit II;

(viii) Starting in July 2012, a decision was made to exclude the Errand Running Area from the Areas of Exchange, and the Errand Running Service Sector was created within the Shared Services Center Department of the Administration and Control Area, and to amend Exhibit II accordingly so that as from July 2012 it shall be made up as detailed in the new Exhibit II;

 

 

(ix) Starting in July 2012, a decision was made to exclude the SOX Regulation Sector from the Audit and Control Area, and to include it as a Sector reporting to the Shared Services Center Department of the Administration and Control Area. In addition, it has been decided that, as of such date, the distribution method applicable to the SOX Regulation Sector was to be changed consisting in the average of total controls and scope controls. As from January 2013, the distribution method applicable to the SOX Regulation Sector was changed again. As a result of the decision adopted in this clause, it was further decided to modify Exhibit II such that as from July 2012 the SOX Regulation Sector is a part of the Shared Services Center Department (using the distribution method described in this clause) and as from January 2013 the cost distribution method applicable to such Sector shall be made up as detailed in the new Exhibit II;

(x) in addition, in relation to the Audit and Control Area, starting in July 2012, a decision was made to modify the distribution method applicable to the Fraud and Internal Audit Departments. In January 2013 a decision was made to exclude the Audit and Control Area from the Areas of Exchange and to include the Departments that were a part of it as two new Exchange Areas, and to change the name of the “Fraud” Department to “Fraud Prevention”. Therefore, Exhibit I and Exhibit II were amended accordingly so that during the period from July 2012 to January 2013 the applicable distribution method is as described in Exhibit II (as part of the Audit and Control Area) and as from January 2013 the Departments would become new Exchange Areas as described in the new Exhibit I and Exhibit II;

(xi) Starting in July 2012, a decision was made to include the Real Estate Business Management Area within the Exchange Areas, consisting of the following Sectors: Real Estate IT Services, Real Estate Business Analysis, Real Estate Credit Risk, Real Estate Legal Affairs, Real Estate Budget and Management Control. As a result of the foregoing, a decision was made to amend Exhibit I and Exhibit II accordingly so that as from July 2012 they shall be made up as detailed in the new Exhibit I and Exhibit II.

(xii) Starting in July 2012, a decision was made to include the HHRR Area of the Real Estate Business within the Exchange Areas, and to amend Exhibit I and Exhibit II in a manner such that as from July 2012, it shall be made up as detailed in the new Exhibit I and Exhibit II.

(xiii) Starting in July 2012, a decision was made to exclude the Public Affairs Area from the Areas of Exchange, and to amend Exhibit I and Exhibit II in a manner such that as from July 2012, it shall be made up as detailed in the new Exhibit I and Exhibit II.

(xiv) Starting in October 2012, a decision was made to include the Real Estate Business Board of Directors to be Distributed Area, and to amend Exhibit I and Exhibit II so that as of October 2012, they shall be made up as detailed in the new Exhibit I and Exhibit II;

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(xv) Starting in February 2013, a decision was to include the Farming Investment Management Area among the Areas of Exchange, and to amend Exhibit I and Exhibit II so that as from February 2013, they shall be made up as detailed in the new Exhibit I and Exhibit II.

(xvi) Starting in January 2013, a decision was made to include the Governmental Affairs sector within the Real Estate Area, and to amend Exhibit II such that as from January 2013 it shall be made up as detailed in the new Exhibit II.

In consideration of the foregoing, the PARTIES hereby put on record that, subject to the clarifications detailed in the preceding clauses and for purposes of updating Exhibits I and II, they shall read as hereto attached for the periods and as from the dates indicated.

TWO: To amend clause d) of the section “1. Premises for the Implementation of the Project” of the Master Agreement so that such clause d) shall read as follows:

“The Project implementation shall not hinder identification of the financial transactions or services concerned, or have an adverse effect on the efficacy of internal control systems or the internal and external audit tasks of the PARTIES, or the possibility of stating the transactions related to the Agreement in accordance with the accounting standards in force and applicable to THE PARTIES.”

THE PARTIES confirm that Daniel E. Mellicovsky, Cedric Bridger and Abraham Perelman continue to be the Individually Responsible Persons on behalf of CRESUD, IRSA and APSA, respectively.

THREE: THE PARTIES agree that the costs related to the employees acting in the new Areas included pursuant to this Sixth Agreement, shall be governed in accordance with the terms and conditions set forth in the Master Agreement and the Addendum.

FOUR: THE PARTIES represent that all the sections of the Master Agreement, the Agreements and the Addendum that have not been amended pursuant to this Sixth Agreement continue to be fully in force.

In witness whereof, this Agreement is executed in three (3) copies of the same tenor and to a single effect in the place and on the date first written.

CRESUD S.A.C.I.F.y A.

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Attorneys-in-fact

IRSA Inversiones y Representaciones Sociedad Anónima

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Attorneys-in-fact

Alto Palermo S.A. (APSA)

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Attorneys-in-fact

  

  

  

Exhibit I 

Description of Corporate Services Exchange Areas 

Human Resources

The Human Resources sector renders to the Parties the service consisting in Human Resources Administration; Human Resources Management; Safety, Hygiene and Environment at the workplace, Organizational Culture Management and Project Management. Within the main activities of the sector we may mention payroll calculation activities, personnel administration, labor relationships, selection and training, remunerations and benefits, internal communication, third party control, etc.

Finance

The Finance sector renders to THE PARTIES the service consisting in Investor Relations, Capital Markets, Financial Risk, Planning, Management of Financial Transactions, Financial Analysis.

Institutional Relations

The Institutional Relations sector renders to THE PARTIES the service consisting in the development and control of advertising, broadcasting and marketing actions, relations with the media, preparation of articles, brochures and related activities.

Administration and Control

The Administration and Control sector controls all the accounting transactions of THE PARTIES. It is responsible for the companies’ management control and budget of structure expenses, and its main activities consist in the preparation of the financial statements, tax management, and supervision of the Shared Services Center.

Insurance

The Insurance sector is in charge of managing THE PARTIES’ assets’ coverage by negotiating, acquiring and monitoring insurance policies, dealing with claims in terms of coverage, collection, etc.

Safety

The Safety sector renders to THE PARTIES the surveillance service.

Contracts

The Contracts sector renders to THE PARTIES the service consisting in aid to the preparation, analysis and response to legal briefs, agreements, official letters, etc.

Technical, Infrastructure and Services, Purchases, Architecture and Design, and Development and Works

The Technical, Infrastructure and Services, Purchases, Architecture and Design, and Development and Works sector renders to THE PARTIES the services consisting in operational coordination of the following sectors: Architecture and Design; Works Development; Purchases and Hirings; and Technical, Infrastructure and Services.

Real Estate

The Real Estate sector renders to THE PARTIES the services consisting in sales and acquisitions of real estate, except for real estate assigned to the agricultural business.

It monitors the properties considered to be “land reserves” and takes part in the businesses arising from governmental grants (exploitation concessions and private initiatives).

Hotels

The Hotels sector renders to THE PARTIES the services consisting in the integration of the different areas of hotels along with their business relations. It carries out activities to optimize and control hotels’ management and organization.

Board of Directors to be Distributed

The Board of Directors to be Distributed sector includes the employees performing activities of support and assistance to the Parties’ Board of Directors.

Real Estate Business Board of Directors to be Distributed

The Real Estate Business Board of Directors to be Distributed sector includes the employees performing activities of support and assistance to the Board of Directors of IRSA and APSA.

General Management Department to be Distributed

The General Management Department to be Distributed sector includes employees performing activities of support and assistance to the Parties’ General Management Departments.

Board of Directors’ Safety

The Board of Directors’ Safety sector renders to the Parties the service consisting in comprehensive safety for the main officers acting in their Board of Directors.

Audit Committee

The Audit Committee sector includes the employees performing tasks of support and assistance to THE PARTIES' Audit Committee.

Real Estate Business Management

The Real Estate Business Management sector renders the following services to IRSA and APSA: budget and control management, analysis of new businesses, analysis of the business clients’ credit risk, IT support to shopping centers, marketing and leadership agreements for the business legal aspects.

Real Estate Business HHRR

The Real Estate Business HHRR sector renders to IRSA and APSA the service consisting in Human Resource Administration; Human Resource Management; Workplace Safety, Hygiene and Environment; Organizational Culture Management and Project Management. The main sector activities include, among others: personnel management, recruitment and training, compensation and benefits, internal communication, third party control, etc.

Fraud Prevention

The Fraud Prevention sector renders to THE PARTIES corporate Fraud Prevention services.

Internal Audit

The Internal Audit sector renders to THE PARTIES internal audit services.

Farming Investment Management

The Farming Investment Management sector renders to THE PARTIES services related to: attorney-in-fact's tasks, administration of vehicles, management of investments and/or farmland-related projects.

 

  

  

  

Exhibit II 

Cost Distribution Bases 

	
Corporate Departments

	
Department

	
Division / Subdivision

	
Distribution Method

	
Human Resources

	
Human Resources

	  	
By headcount (non-corporate personnel) and weighting the percentages of other areas (corporate personnel).

 

 

 

	  	
Project Management

	  
	  	
Project Quality

	  
	  	
Safety and Hygiene

	  
	
Finance

 

	
Capital Markets

	  	
Weighting is as follows:

Capital Markets 20%

Relations with Investors 20%

Financial Risk 10%

Financial Administration 20%

Planning 20%

Financial Analysis 10%

Investors Relations: Number of business highlights during the semester, number of result announcements, number of meetings with investors (current or potential) to discuss the companies’ business and strategy, number of active coverages, number of result conferences, the complexity of the website of each company, number of relevant facts published in the Argentine Securities and Exchange Commission and the US Securities and Exchange Commission, and number of Roadshows (Deal o Non-Deal). All items involved are weighted in equal parts. 

Capital Markets: Amount of financial transactions conducted in the period weighted at 70% and the remaining 30% corresponds to updates of offering memoranda and “horizontal” works (20F, annual reports, Press Release, etc.)

Financial Risk: Time invested in the duties performed.

Financial Administration: Total assets weighted at 40% and total liabilities weighted at 60%. The resulting percentage shall be weighted at 80% over the total. The remaining 20% will correspond to the percentage that each company consummates over the total inquiries for special transactions.

- Planning: Proportional among the three companies.

Financial Analysis: Time devoted to the tasks performed.

	
Relations with Investors

	  
	
Financial Risk

	  
	
Financial Administration

	  
	
Planning

	  
	
Financial Analysis

	
Institutional Relations

	
Institutional Relations

	  	
Tasks performed and the time spent in each.

	
Administration and Control

Each one of the sectors comprising the Department is weighted.

	
Accounting y Reporting

	  	
The records of accounting and revenues per company are weighted.

	
Taxes

	  	
Salaries are weighted according to the position and tasks performed (per company and in equal shares)

	
Budget and Global Management Control

	  	
Same percentage as Administration and Control Department

	
Shared Services Center (CSC)

(the sectors reporting to it are weighted).

	
Administrative Operations

	
Records of revenues, records of expenses, records of treasury activity, records of collections and the number of sector’s payroll are weighted.

	
Errand Running Service

	
Number of errands run.

	
Sox Regulation

	
Distribution of key control % per front / company (scope matrixes on 2012 base + parking space process to be included in 2013)

	
Special Projects and Control

	
Hours of tasks performed.

	
Systems and Technology

 

	
Weighting of time spent in each task.

	
Process Quality

	
Tasks performed and time spent in such tasks.

	
Budget and Management Control – Shared Services Center

	
Same percentage as the Shared Services Center Department.

	
Business Operations

	
Hours spent in each task.

	
HHRR – Shared Services Center

	
50% weighting of percentages from Shared Services Center sectors; 50% weighting of percentages from corporate sectors.

	
Real Estate Business Management

(each of the Departments comprising the Area are weighted. It does not render services to Cresud)

 

	
Real Estate IT Services

	  	
70% APSA, 30% to be distributed APSA and IRSA based on supervised projects.

	
Real Estate Business Analysis

	  	
Hours devoted to reviewed projects as applicable to APSA or IRSA.

	
Real Estate Credit Risk

	  	
Hours worked for each company.

	
Real Estate Legal Affairs

	  	
Weighting of hours and salaries.

	
Real Estate Budget and Management Control

 

	  	
Actual revenues per company.

	
Real Estate Business Board of Directors to be Distributed

	
Real Estate Business Board of Directors to be Distributed

	  	
Proportional between IRSA and APSA. Excludes Cresud.

	
Real Estate Business HHRR

	
Real Estate Business HHRR

	  	
Based on payroll.

	
Insurance

	
Insurance

	  	
Based on the amount of premiums under the annual insurance program.

	
Safety

	
Safety

	  	
Per hour

	
Contracts

	
Contracts

	  	
Number of contracts executed.

	
Technical, Infrastructure and Services, Purchases, Architecture and Design, and Development and Works Department

An average is obtained from the Departments reporting to it

	
Technical, Infrastructure and Services

(APSA – IRSA: Weighted average from the Departments reporting to it less the percentage allocated to CRESUD.  CRESUD: a percentage is calculated based on the hours spent in the tasks performed/planned)

	
Planning and Control

	
Weighted average of the areas under the supervision of the TIS Department of IRSA and APSA, excluding CRESUD.

	
Logistics

	
Weighted between directly assigned personnel and centralized personnel distributed per square meter of the real property (IRSA and APSA) and time spent in tasks (CRESUD).

	
Distributed Operations

	
Square meters of real property held, operated and to which maintenance services are provided (IRSA and APSA) and time spent in tasks (CRESUD).

	
Architecture

	
IRSA/APSA: Personnel distributed per surface area and number of stores.

	
Third parties' services

	
Distribution of resource allocation.

	
Traveling Personnel

	
Maintenance hours (IRSA and APSA) and time spent in tasks (CRESUD).

	
Engineering and Maintenance

	
Square meters of real property held, to which maintenance, engineering and other services are provided (IRSA and APSA) and time spent in tasks (CRESUD).

	
Purchases and Hiring

	  	
Purchase orders with weighted volume and amounts thereof.

	
Development and Works

	  	
Tasks performed and time spent in each.

	
Architecture and Design

	  	
Completed projects.

	
Environment and Quality

	  	
Number of case files submitted with the enforcing authority, and time spent in the follow-up and control thereof.

	
Real Estate

	
Real Estate

	  	
Salaries are weighted according to the position and tasks performed (per companies and in equal shares).

	
Governmental Affairs

	  	
Weighting of allocated projects.

	
Hotels

	
Hotels

	  	
100% IRSA.

	
Internal Audit

	
Internal Audit

	  	
Times estimated/forecast in the annual plan.

 

	
Fraud Prevention

	
Fraud Prevention

	  	
Proportional among the three companies

	
Board of Directors to be Distributed

	
Board of Directors to be Distributed

	  	
Proportional among the three companies

	
Audit Committee

	
Audit Committee

	  	
Weighting of tasks performed.

	
General Management Department to be Distributed

	
General Management Department to be Distributed

	  	
Proportional among the three companies

	
Board of Directors’ Safety

	
Board of Directors’ Safety

	  	
Proportional among the three companies

	
Farming Investment Management

	
Farming Investment Management

	  	
Hours of tasks performed.exhibit49.htm

  

  

  

EXHIBIT 4.9

 

SECOND ADDENDUM TO CORPORATE SERVICES MASTER AGREEMENT

Made in the City of Buenos Aires, on this 24th day of February of 2014, by and among:

(i) CRESUD S.A.C.I.F. y A., domiciled at Moreno No. 877, 23rd Floor, City of Buenos Aires, represented hereat by the undersigned attorneys-in-fact (hereinafter “CRESUD”) for the first part;

(ii) Alto Palermo S.A. (APSA), domiciled at Moreno No. 877, 21st Floor, City of Buenos Aires, represented hereat by the undersigned attorneys-in-fact (hereinafter “APSA”), for the second part; and

(iii) IRSA Inversiones y Representaciones Sociedad Anónima, domiciled at Bolívar No. 108, 1st Floor, City of Buenos Aires, and setting up domicile for purposes of this agreement at Moreno No. 877, 22nd Floor, City of Buenos Aires, represented hereat by the undersigned attorneys-in-fact, for the third part (hereinafter “IRSA”, and collectively with CRESUD and APSA hereinafter referred to as the “Parties”, and each of them individually as a “Party”).

              WHEREAS:                                                                                                                                          

(i) On June 30, 2004, the Parties executed a Master Agreement for the Exchange of Corporate Services (hereinafter the “Master Agreement”), whereby the administrative and financial features and guidelines for implementing the supply of Corporate Services were established, for purposes of reducing fixed costs arising from the Parties’ activities and diminishing their impact on operating results, taking advantage of the individual efficiencies of each of them in the various operating management areas;

(ii) The Parties engaged Deloitte & Co. S.R.L. (hereinafter “Deloitte”) for it to review and assess semi-annually the criteria used in the Corporate Services settlement process and the Cost Distribution Bases and supporting documents used in the above mentioned process and prepare a semi-annual report;

(iii) Due to the experience gained as a result of the implementation of the Master Agreement based on an Implementation Manual prepared by Deloitte, certain operational changes to the Areas of Exchange of Corporate Services and Cost Distribution Bases have been implemented since January 2005;

(iv) Such operational changes were acknowledged by the Parties through the execution of six agreements for the implementation of amendments dated August 23, 2007, August 14, 2008, November 27, 2009, July 11, 2011, October 15, 2012 and November 12, 2013, respectively (the “Agreements”);

(v) On March 12, 2010, the Parties executed an Addendum to the Master Agreement (hereinafter, the “Addendum”) whereby the Parties agreed to unify in CRESUD the services of the Areas of Exchange of Corporate Services, for which purpose they transferred the employement agreements of most employees from such areas and a procedure was established to allocate the hypothetical labor costs resulting from outgoing employees;

(vi) In view of the fact that the Parties are going through the structuring of a new organizational model for the division of business areas, it is deemed advisable that within the scope of the Master Agreement and the Agreements, the services related to the Technical, Infrastructure and Services, Purchases, Architecture and Design, and Development and Works, Real Estate Business Management, Real Estate Business HHRR, Safety and Real Estate (the “Transfer Areas”), all of which are related to the real estate business, should be directly provided by IRSA and/or APSA, to which end the employment agreements of the employees rendering such services were transferred;

(vii) The new organizational model is intended to provide for increased independence and specialization on a business basis, developing deeper identification of the employees with the company for which they provide services and hence creating more commitment on the part of the employees;

(viii) As the terms of the Addendum provided that all employees assigned by any of the Parties in the future would be subject to the methology set forth therein, the Parties deem it suitable to enter into this Second Addendum to the Corporate Services Master Agreement (the “Second Addendum”) so as to establish the mechanisms to be used in allocating the expenses related to the hypothetical labor costs that could arise from the termination of employees or other costs whose origin or accrual shall have occurred or shall occur before or after the assignment referred to above;

(ix) Notwithstanding the provisions of the Addendum and the Second Addendum, the Parties keep the areas that group together the know-how of the business of each of them unchanged;

(x) Each of the Parties has submitted the contents of the Second Addendum to their respective Audit Committees for review, which have raised no objections to it; and

(xi) In addition, the Board of Directors of each of the Parties has approved this Second Addendum at the meeting held on February 21, 2014.

NOW, THEREFORE, the Parties agree to enter into this Second Addendum, to be governed by the following clauses:

  

  

  

ONE: The Exhibit attached to this Second Addendum includes a list of the personnel serving in the Transfer Areas to be transferred from CRESUD to IRSA and/or to APSA effective as of January 1, 2014. The allocation of their salaries and labor costs shall continue to be distributed as set forth in the Master Agreement and the Agreements. The Exhibit sets forth the length of service of corporate employees, their original employers, their employers as of the date of execution of this document, and the corporate sector where they serve.

TWO: The Parties agree to perform the following obligations as an immediate consequence of the execution of this Second Addendum:

	
(a)  

	
In the event of termination of or if a claim is filed by any employee whose employment agreement was transferred, the Parties shall identify its origin or subject matter;

	
(b)  

	
The Parties shall identify the origin or accrual of the termination or hypothetical right, so as to determine the financial liability of each Party;

	
(c)  

	
The Parties promise to indemnify APSA and/or IRSA, as applicable, to such extent as appropriate, for the expenses and disbursements arising from claims made by the transferred employees listed in the Exhibit.

THREE: The expenses mentioned in paragraph (c) above include:                                                                                                                                          

	
(a)  

	
Any salary and/or indemnification and/or social security item, claim or hypothetical concept, including: outstanding wages, if any, salary differences, statutory annual benefit, vacation pay, any kind of commissions, overtime, as well as any bonuses, rewards and/or reimbursements and any indemnification amounts that could arise from Section 212 of the Employment Contract Law, Section 1113 of the Civil Code, damages and/or pain and suffering or damages under Occupational Accidents Laws No. 24,028 and 24,557, as amended, -if applicable-, for which APSA, IRSA and/or CRESUD could be liable, as well as any other amount originated in the employment relationship that is being terminated, whatever its origin may be, as well as any other mechanism or institute related to the employee’s performance during their relationship with CRESUD, irrespective of the regulatory source that created them; and

	
(b)  

	
professional fees and expenses incurred in the defense of the interests of the Party(ies), whether originated in claims filed by employees or third parties.

FOUR: The Parties agree that all costs associated to the employees who join the Transfer Areas or who, in spite of working in other Areas, are assigned by any of the Parties in the future within the scope of implementation of the new organizational structure, shall be governed by the method contemplated herein.

FIVE: The Corporate Human Resources Department shall be responsible for determining the amounts or percentages to be borne by each Party, based on each employee’s periods of service and taking into account the origin of each termination or the cause of each claim. At the closing of each year the above mentioned Department shall submit a report to an assessment committee (the “Assessment Committee”) containing a detail of all cases of termination that involve the employees listed in the Exhibit. The Assessment Committee shall be composed of the Individual In-charges of each of the Parties previously appointed and shall validate the adequate allocation of expenses made by the Corporate Human Resources Department. Any decisions taken by the Assessment Committee shall be adopted by simple majority and shall not be subject to appeal.

SIX: The Parties agree that for purposes of facilitating the implementation hereof among them, within five days before the closing of each calendar month APSA and/or IRSA, as applicable, shall make a pro-forma settlement of the costs to be paid by each of the Parties at the end of the month. Based on such settlement, APSA and/or IRSA shall invoice to APSA, IRSA and/or CRESUD a sum of money calculated on the basis of the costs paid in such month. APSA and IRSA promise to render a monthly account by delivering: (i) a detail of the differences between the pro-forma settlement and the final account resulting from the payments made; and (ii) a detail of the use of proceeds to each of the Parties, for purposes of computing the payments to be made pursuant to Section 5 of the Master Agreement.

SEVEN: The Parties agree that all the clauses and exhibits of the Master Agreement, the Addendum and the Agreements are in force, and that this Second Addendum does not amend any of their clauses.

EIGHT: The Parties agree that all capitalized terms not defined in this Second Addendum shall have the meanings assigned to them in the Master Agreement, the Addendum and the Agreements.

NINE: All the counterparts of this Second Addendum and its Exhibit, once signed by the Parties, shall be regarded as original counterparts to all effects.

TEN: If any of the clauses or provisions of this Second Addendum were invalid, unenforceable, ineffective or illegal, such invalidity, unenforceability, ineffectiveness or illegality shall not affect the validity of this Second Addendum, and its remaining provisions shall remain in force.

ELEVEN: This Second Addendum shall be governed by and interpreted in accordance with the laws of the Republic of Argentina.

TWELVE: Any disputes arising from or related to the execution, interpretation or enforcement of this Second Addendum shall be negotiated by the Parties in good faith. The negotiation stage having been exhausted, at the request of any of the Parties the dispute shall be settled by the Arbitration Court of the Buenos Aires Stock Exchange, or any such court as may replace it in the future, which shall act in accordance with the rules of arbitration of law, and whose decision shall be final and not subject to appeal.

THIRTEEN: The Parties have drafted this Second Addendum jointly; therefore, in case of ambiguity or any other circumstance that requires an interpretation of its terms, no presumption arising from the authorship of this Second Addendum shall favor or prejudice any of the Parties.

FOURTEEN: Except as otherwise clearly arising from the text of this Second Addendum, it shall be understood that: (i) any references to the singular form include the plural, and vice versa; (ii) any references to the masculine gender include the feminine gender, and vice versa; (iii) any references to a given legislation include the regulations or supplementary statutes issued under the referred legislation; and (iv) the word “including” or similar terms imply a mere explicatory or illustrative enumeration.

In witness whereof, three (3) identical counterparts are signed to a single effect in the place and on the date first above written.

  

  

  

CRESUD S.A.C.I.F.y A.                                                                                                                                          

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Attorneys-at-law                                                                                                                                          

IRSA Inversiones y Representaciones Sociedad Anónima                                                                                                                                          

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Attorneys-at-law                                                                                                                                          

Alto Palermo S.A. (APSA)                                                                                                                                          

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Attorneys-at-law

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