EXHIBIT 10.3
RENTAL CONTRACT Page 1 (2)
FOR PREMISES
SWEDEN'S PROPERTY OWNERS No. 32058-1007
The undersigned has entered into the following rental agreement on this day.
Check the square if the subsequent text applies.
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Landlord Signed [Initials]
FAB FISKETORGET gm MALARTORNET AB
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Tenant Personal Identification Number Signed
FRONTEC AMT AB 556209-9829 [Initials]
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Address of Municipality District/neighborhood
premises
Solna Noten 4
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Xxxxxx Xxxxx Xxxxxxxxx Xx.
Xxxxxxxxxxx 00
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Condition and Unless otherwise specified, the premises and corresponding space is to
use of premises be rented out in its existing condition to be uses as : Office
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Size and Shop area Office area on Storage area on Other areas
dimensions of -------------------------------------------------------------------------- --------------------------------
premises floor m2 floor m2 ca floor m2 floor m2 floor m2
5 1608
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Appendix
X The dimensions of the premises to be rented have been indicated on the attached 5
diagrams.
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Parking Garage spaces Outside house
Road access for Signage Space for display space(s) for for
loading and space case/vending
unloading vehicles. machine car(s) car(s)
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Furnishing Premises rents Upon termination Appendix 5
of the rental
relationship,
the Tenant shall
remove their own
furnishings and
X without special furnishings with special furnishings as shall leave the
attached. premises in an
acceptable
condition,
unless otherwise
agreed.
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Contract Period From To
October 1, 1999 September 30, 2002
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Notification prior to the end of the rental
period Cancellation of this contract shall be made period, otherwise the contract
Extension with written notification at least appendix 4 months is renewed years each
period time.
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Rent Kroner:
2,010,000.00 per year total rent X rent excluding
additional payments marked
below
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Indexing clause X The rent indicated above can be changed in accordance with the attached Appendix
indexing clause. 1
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Heat and hot Necessary heating for the premises is the responsibility of: Hot water is supplied
water X Landlord Tenant X entire year not at all
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Cost Appendix
Fuel/Additional heating charge is to be paid as per the attached indexing clause.
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Additional Appendix
water fee Additional water fee to be paid as per the attached clause.
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Cooling/ The costs for operating special air conditioning or ventilation equipment are to be Appendix
Ventilation reimbursed as per the attached clause.
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Electricity
Included in rent X Tenant has own subscription
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Cleaning
stairwell X Included in rent paid for by the Tenant
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Packing and
collecting X included in rent paid for and dealt with by the Tenant
garbage (however, the Landlord is responsible for supplying garbage cans and the
necessary space to store garbage).
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Snow removal
and sanding X included in the rent taken care of and paid for by the Tenant
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Real estate tax included in rent X paid for according to special agreement. Appendix
2
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Unforeseen If unforeseen cost increases for the property appear after signing the agreement, due to
costs a) Introduction or increase in taxes, fees or other additional charges specifically for the
property as decreed by the Swedish Parliament, the government, municipality or other authority.
b) General improvements or similar measures to the property, which do not solely involve the
premises and which the Landlord is required to complete as a result of decision made by the
Swedish Parliament, the government, the municipality, or other authority
the Tenant shall compensate the Landlord for the portion of the total annual cost increase for the
property corresponding to the premises in question, which are the result of the new cost increases.
The portion for the premises is percent (if the portion is not indicated, it is calculated in
relation to the property's payable rent at the time of the cost increase.)
The tax according to a) does not concern value added tax and real estate tax, to the extent that the
compensation heretofore is paid in accordance with the special agreement above.
The compensation is paid according to the rules below for paying rent.
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Value Added X The property owner/Landlord is responsible for the VAT for renting out the premises. The Tenant shall,
Tax (VAT) in addition to the rent, pay any applicable VAT in each case.
If, based on the decision of the tax authorities, the property owner/Landlord is liable for the VAT for
renting the premises, the Tenant shall, in addition to rent, pay any applicable VAT in each case.
That which is paid at the same time as the rent is calculated into the total rent specified according to
the applicable rules for VAT on rent in each case, and according to the rental contract for payable fees
and other payments in applicable cases.
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SWEDEN'S PROPERTY OWNER'S UNION, FORM NO. 12A ISSUED 1991 IN CONSULTATION
WITH SWEDISH UNION OF MERCHANTS/TENANTS AND NATIONAL BUSINESS ORGANIZATION,
DOCUMENTCONCEPT AB 97.04
Reprinting prohibited
SWEDEN'S PROPERTY OWNERS INDEX CLAUSE
for premises Appendix 1
See page two for instructions.
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Regarding Rental Contract No. for the property at
32058-1007 Kv. Noten 4, Solna
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Landlord
FAB FISKETORGET gm MALARTORNET AB
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Tenant
FRONTEC AMT AB
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Clause
Of the amount of rent indicated in the contract shall 100 % or 2,010,000 kroner
make up the base rent. During the rental period, in relation to changes in the consumer
price index (with 1980 as base year), additional charges to the rent shall be payable with a
certain percentage added to the base rent according to the reasons given below.
For rental agreements starting anytime between January 1 - June 30, the base rent is adjusted
to the index for October of the previous year.
For rental agreements starting anytime between July 1 - December 31, the base rent is
adjusted instead to the index value for October of the same year.
The index number for the month of October, to which the based rent is adjusted above,
constitutes the base number, to the extent that nothing else has not been agreed upon during
the year.
The agreed base number, namely the index for October 1999.
If, during some subsequent October, the index should have risen by at least three (3) points
in relation to the base number, additional charges shall be payable based on the percentage
number by which the index is adjusted in relation to the base number. From then on,
additional charges shall be payable in relation to changes in the index, whereby the change
in rent is calculated on the basis of the percentage change between the base number and the
index number for the respective month of October. In order for the change in rent to
subsequently occur, the index for October shall be raised or lowered by at least three (3)
points in relation to the index number, which was applicable at the last instance when the
rent was adjusted according to this clause.
However, payable rent shall never be set lower than the amount of rent indicated in the
contract. Changes to the rent apply always from January 1 after the October index has been
recalculated.
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Signature Place/Date Place/Date
Stockholm, July 5, 1999 Solna, July 5 1999
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Landlord Tenant
MALARTORNET AB FRONTEC AMT AB
(Signature)
--------------------------------
Tenant
(Signature)
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Landlord's notes regarding base number:
Base number at the start of rental agreement: unknown
(October 1999)
SWEDEN'S PROPERTY OWNERS UNION, FORM NO. 60 ISSUED 1994 IN CONSULTATION WITH
SWEDISH UNION OF MERCHANTS / TENANTS AND NATIONAL BUSINESS ORGANIZATION,
INTELLIGENT DOCUMENT SYSTEMS AB 96.01
Reprinting prohibited
SWEDEN'S PROPERTY OWNERS REAL ESTATE TAX CLAUSE
for premises Appendix 2
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Regarding Rental Contract No. for the property at
32058-1007 Kv. Noten 4, Solna
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Landlord
FAB FISKETORGET gm MALARTORNET AB
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Tenant
FRONTEC AMT AB
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Clause Suitable alternatives are marked with an X in the box and have the required amounts filled in.
To the extent that those parts of the property which constitute the premises become/are subject to real
estate tax, the Tenant shall compensate the Landlord for this along with the rent according to the
alternative marked below.
X
In addition to the rent indicated in the contract, the Tenant shall pay compensation for their portion
of any payable real estate for the premises. The Tenant's portion shall be considered to be
percent. According to the provisions, which are known at the time of signing the agreement, the
compensation that the Tenant shall pay at the start of the rental period is 183, 412 kroner.
Compensation for the premises' portion of the real estate tax is included in the rent indicated in the
agreement and amounts to kr at the time the agreement is signed.
The premises' portion of the real estate tax shall be considered to be percent.
The Tenant shall pay compensation, after signing the agreement, for his portion of any changes
(regardless of the reason why) to the real estate tax for the premises, to the extent that the tax
exceeds the amount of real estate tax compensation that is included in the rent.
Should the real estate tax increase/cease so that the Tenant's portion of the compensation falls below
the compensation that is included in the rent provided in the agreement as above, the original amount
of rent shall still be payable, at a minimum. Thus, other clauses in the agreement (e.g. index) can
mean that the total amount of rent that the Tenant pays is/can be higher than the total amount of rent
indicated in the agreement.
The Tenant's portion indicated above that will be unchanged during the rental period was calculated
according to the following:
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..............................
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The instructions printed on the overleaf apply to the agreement
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Signature Place/Date Place/Date
Stockholm, July 5, 1999 Solna, July 5 1999
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Landlord Tenant
MALARTORNET AB FRONTEC AMT AB
(Signature}
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Tenant
(Signature)
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SWEDEN'S PROPERTY OWNERS UNION, FORM NO. 78 ISSUED 1995. REPRINTING FORBIDDEN.
INTELLIGENT DOCUMENT SYSTEMS AB 96.01
