EXHIBIT 10.3
LEASE FOR OFFICE IN ARGENTINA
LEASE CONTRACT
Between Mrs. XXXXX DE LOS ANGELES XXXX, domiciled at Xxxxxx Street 184,
Location, 21 in the city of Cordoba, who shall hereinafter be called the
Landlord and Xx. XXXXXXX XXXXXXX XXXXXXX (I.D.) N(degree) 14.292.085, domiciled
at Xxxxxxx X. xx Xxxxxx N(degree) 30 (illegible) in the city of Cordoba, who by
mutual agreement hereby sign a real estate lease contract which shall be ruled
by the regulations on the matter in force in the Civil Code and the clauses
detailed as follows:
FIRST: Execution of the contract : Mrs. XXXXX DE LOS ANGELES XXXX, as Landlord,
rents to Xx. XXXXXXX XXXXXXX XXXXXXX, the Tenant, who accepts it as such, a real
estate property described as an apartment located in Xxxxx Xxxxx X(xxxxxx) 000,
0xx xxxxx A, in the city of Cordoba. The apartment is delivered with a 1 Xxxxx
kitchen, 2 Eskabe heaters, 2 Carrier and Feders air conditioners. SECOND
:Duration of the lease: this contract shall be in force for thirty six
continuous months as of the 1st of June, 1999. It shall, therefore, expire on
May 31st, 2002 without any option for extension. Once the term has expired, as a
penalty clause until he effectively vacates the property, the Tenant shall pay a
daily fine equal to 1% (one percent) of the amount corresponding to rent to the
last month of the contract. Said penalty clause has simply a punitive character
for the lack of prompt return and shall not be interpreted as indemnity for
damages, which the Landlord shall be able to claim independently of such
sanction. The rental periods shall be full calendar months and, in case the
Tenant should move before the end of the month, he shall have to make full
payment of the whole month. THIRD: Price: It is a condition of this contract
that it be executed at stable price and under the protection of National Law
N(degree) 23.928, fixing the rental price, as per mutual agreement between the
parts, in the amount of SEVEN HUNDRED PESOS ($ 700.00) per month CONVERTIBLE TO
United States dollars at a rate of ONE PESO ($1.00) per dollar. The monthly
price of rent shall be modified every month in the same identical proportion as
the aforementioned rate of exchange is modified. Consequently it is hereby
perfectly established that the SEVEN HUNDRED PESOS ($700.00) which constitute
the initial monthly price of rent are the necessary amount to acquire by
exchange the sum of SEVEN HUNDRED UNITED STATES DOLLARS (US$ 700.00), which
every month shall be sufficient to be converted into the same amount of dollars.
If the present contract is extended by legal mandate and the Tenant protected by
the benefits thereof, the Landlord may freely choose to continue during such
extension with the adjustment system agreed upon in this clause or that which
might be legally established, whichever is more convenient to his interests.
FOURTH: Use of the rented property: The real estate property rented by this
contract shall be used by the Tenant exclusively as an office, excluding any
other use. Violation of this clause shall give the Landlord the right to revoke
this contract and demand damages, should there be any thereof. FIFTH: Payment
arrears: Payment of rent shall be made by Tenant at the domicile fixed by the
Landlord in this contract or where (Landlord) shall fix at a later date through
certified means, in advance and no later than the fifth (5th) day of the
corresponding month. The arrears of obligations by the Tenant, shall be incurred
into as per law as of the due date
of the period established by contract without the need for any previous
notification or interpellation. The lack of payment of rent in the established
date (the fifth day of each month) shall give the Landlord the right to apply a
punitive interest equivalent to 0.33% per day of the amount in arrears. To that
effect, the fractions of a month shall be computed as whole. All this without
prejudice to the application of legal compensatory interest and without
prejudice on the part of the Landlord of legal actions she might execute for the
collection of the rent and for the eviction from the rented real estate for lack
of payment of the corresponding rent. SIXTH: Prohibition : The Tenant is hereby
totally forbidden to transfer, sub-rent, to be replaced by third parties
relinquish the property or his rights thereon wholly or partially without
express authorization in writing by the Landlord. SEVENTH: Receiving of the
rented property: The Tenant declares that he has visited and examined the rental
property and he receives it to his satisfaction, stating that the same is in
good condition and clean, undertaking the obligation to maintain and return it
to the Landlord in the same good condition he received it, with the walls worn
out such as is the consequence of good use, free of occupants and/or objects. It
is completely forbidden to him to make reforms without express authorization in
writing by the Landlord. If he made such reforms, without prejudice to the
responsibilities derived from his lack of compliance, the Landlord may, at her
free option: a) demand the return of the property in its original condition at
the expense of the Tenant, and/or leave them as improvements of the property
without having to pay any indemnity or compensation for them. EIGHTH: Tenant's
obligations: The Tenant shall have the following obligations: a) to promptly pay
all utility expenses such as gas, power, Cordobesas waters, etc. and all
services rendered to the property during the term of this contract. The Tenant
shall prove those payments by delivering to the Landlord the corresponding
receipts; b) placing to his name the power, gas and Cordobesas water services at
his expense and, when the time comes to effect the return of the property, he
shall have to present the corresponding certificate of freedom from debt on
those services, as well as the suspension of the same, as an essential condition
for the receipt of the property (by Landlord), otherwise having to keep on
paying rent and charges as due; c) to repair at his own expense, and without
right to claim any compensation, any obstruction in the sanitary services,
electrical service, rain drainage, sewer, roof leaks, window panes, fixtures and
any other broken items, malfunction or alteration present in the property. If
the Tenant does not make such repairs, the Landlord shall be able to make them,
keeping the right to claim all expenses caused by them; d) pay the cost and
expenses required by judicial an extra-judicial processes needed as a
consequence of the lack of compliance by the Tenant of any of the obligations
derived from this contract. NINTH: Delivery of the keys: The delivery of the
keys to the property shall be justified by the Tenant with a written document
from the Landlord. No other proof shall be admitted. TENTH: Lack of compliance:
The lack of compliance by the Tenant of any obligation in this contract,
especially the lack of payment of two consecutive months of rent, shall give the
Landlord the right to demand the immediate evacuation of the property as if it
were due term and to demand damages, should there be any. ELEVENTH: Stamping of
the contract: the replacement of the seals of this contract shall be wholly the
responsibility of the Tenant.
TWELVETH: Guarantors: Xxx. XXXXXXXX XXXXXXX XXXXX
D.N.I (ID) 13.535.429, domiciled at Rio Bamba Street N(degree) 323 B(degree)
Quebrada de las Xxxxx, in the city of Cordoba, who signs this contract jointly
with the contracting parties, in full conformity, agrees to be full guarantor,
without restriction and be principal payer of all obligations emerging from this
instrument until the day the property is delivered, vacant, by the Tenant and
received in conformity by the Landlord or her representative, renouncing as of
now to the benefits of excuse, division, previous notice and all others agreed
to in the law for guarantors. The Landlord shall have the right to demand the
replacement of the guarantor in case of insolvency, demise or disappearance of
the same, within the ten (10) working days of notifying the Tenant. Otherwise
she will have the right to rescind the contract and request the evacuation of
the property. The guarantor directly affects as the best support for fulfillment
of the guarantee the assets belonging to him (her) indicated hereinafter, which
the Landlord has accepted as guaranty. THIRTEENTH: Property in Guarantee: Xxx.
XXXXXXXX XXXXXXX XXXXX offers in proprietary guarantee a real estate property
registered under entry N(degree) 130.886, Year 1997, in the registry of the
province of Cordoba. In case of selling or mortgaging said real estate property,
he (she) shall communicate such transaction within 48 hours of its occurrence.
NONATTACHMENT: Both, the Tenant and the guarantor expressly renounce to the
nonattachment benefits by automatic registration as a family asset accorded by
National Law N(degree) 14.394 and Provincial Law N(degree) 6.074 as well as to
all concurrent and/or modifying laws of the same. FIFTEENTH: Eviction: The lack
of compliance with any of the clauses in this contract shall give the Landlord
the option to demand eviction from the rented property, with prior notification,
in the terms defined by Law N(degree) 23.091, Article 5, reserving the right to
claim damages.
SIXTEENTH: Domicile for payment: The domicile for payment of the rent is Xxxxxx
Street 184, location 21, in the city of Cordoba.
SEVENTEENTH: Domicile Jurisdiction: For all effects that may arise in the
compliance of this contract, the contracting parties designate special domiciles
in those hereinabove mentioned, to those ends they submit themselves to
jurisdiction of the "Tribunales Ordinarios" (Regular Courts) of the city of
Cordoba (province of Cordoba), renouncing to any other one of exception which to
which they might be entitled. The parties in agreement and undertaking the
obligation of its strict compliance, as per law, they sign three copies of the
same tenor towards the same effect in the city of Cordoba.
Signature (illegible) Signature (illegible) Signature (illegible)
Xxxxxxxx Xxxxxxx Xxxxx E. G. Chapeta
