General conditions of lease

GENERAL CONDITIONS OF LEASE OF CONTECH-CONNECT TECHNOLOGIES s.r.o.

I. Introductory provisions

1. The Lessor is a trading company whose subject of activity covers amongst other matters the lease and loaning of mobile items - audio-visual, computer and conference technology, together with qualified attendance staff for this technology (hereinafter referred to as the „subject of lease“). The Lessor may lease only audio-visual, computer and conference technology without qualified attendance staff to the Leaseholder, however, such lease shall take place only on the basis of an explicit request from the Leaseholder.

2. The Lessor is the exclusive owner of the subject of lease and remains in this position throughout the entire period of duration of the relationship of lease ensuing from this contract.

II. Conclusion of contract and transfer of subject of lease

1. The Lessor is obliged to transfer the subject of lease to the Leaseholder on the basis of an order. The relationship of lease is established upon confirmation of the order and transfer of the subject of lease. The liability outlined in article IV letters 1 and 4 of these General Conditions of Lease is transferred to the Leaseholder together with the subject of lease. The day of transfer and day of return of the subject of lease are included in the period of duration of the lease.

2. The Leaseholder is obliged to report the cancellation of its order without delay after becoming aware of the reason for cancellation, and no later than 24 hours before the contractual transfer of the subject of lease. The Lessor is authorised to charge the Leaseholder a fee for cancellation of the order, of the following amounts:

• 20 days in advance 15 % of price of lease
• 10 days in advance 30 % of price of lease
• 5 days in advance 50 % of price of lease
• 3 days in advance 75 % of price of lease
• 1 day in advance 100 % of price of lease

3. Unless otherwise stated in the contract on lease, the subject of lease is transferred and returned in the location stipulated in the order. The costs for transit of the subject of lease to the designated location and back following termination of the lease, as well as all ensuing costs for the loading and unloading of the subject of lease shall always be paid by the Leaseholder and constitute a component of the price of lease.

4. The Lessor is not obliged to fulfil the contract on lease in the case of the impossibility thereof as a result of unforeseen circumstances which occurred independently of the will of the party, preventing the fulfilment of its obligations, such as in particular natural disaster, breakdown of machinery, strike, lockout, war, restriction of transport or other circumstances beyond the control of the Lessor.

III. Liability of Lessor

1. The Lessor is not liable for any damage, loss or destruction of the subject of lease transferred to the Leaseholder. The Lessor is also not liable for consequences or indirect loss and damage, including lost profits, even if these ensued as a consequence of or in connection with the lease and use of the subject of lease.

2. The Lessor is not obliged to provide compensation for the period during which the Leaseholder is unable to use the subject of lease. In the case that the leaseholder is unable to use the subject of lease due to a breakdown or fault thereof, the Lessor may waive payment of the rent for the relevant period or provide a discount thereon following an agreement with the Leaseholder.

IV. Rights and obligations of Leaseholder

1. The Leaseholder is fully liable for loss, damage or destruction of the subject of lease. In the case of loss or destruction of the subject of lease, the Leaseholder is obliged to pay the Lessor an amount equal to the costs for acquisition of a new subject of lease. In the case of damage to the subject of lease the Leaseholder is obliged to pay the costs expended on the repair thereof.

2. The Leaseholder may use the subject of lease only in the usual manner and exclusively for the purposes and in the locations for which it is designated by means of its character. The Leaseholder is obliged to proceed with professional care upon use of the subject of lease. The Leaseholder is not authorised to overburden the subject of lease beyond the scope of the permitted technical parameters, or to adjust it in any manner. In the case of failure to abide by these prohibitions the Leaseholder shall pay the costs for repair of the subject of lease and its return to its original condition.

3. The Leaseholder is not authorised to conclude any contract (e.g. of lease, sale etc.) with any third party relating to the subject of lease without the prior written consent of the Lessor. The Leaseholder also must not loan the subject of lease to any third party free of charge without the prior written consent of the Lessor. Additionally the Leaseholder must not pawn the subject of lease. All such contracts concluded with a third party without the prior written consent of the Lessor shall be considered invalid, and the Leaseholder shall bear full liability for any ensuing losses. Written consent provided by the Lessor according to this paragraph shall always be specific, i.e. shall apply only for the conclusion of a contract with the specific third party stated in the written consent. In the case of conclusion of a contract with another party than the party explicitly stated in the written consent, such consent shall not apply.

4. The Leaseholder bears full liability for damages, losses or destruction of any assets of a third party ensuing from the operation of the subject of lease, and is obliged to pay for such damages in full. The same shall apply in the case of injury or death of any person in the case that such circumstances occurred in connection with the use of the subject of lease.

5. The Leaseholder is obliged to return the subject of lease at the moment stipulated in the contract on lease. Failure to return the subject of lease as of the day of termination of the lease is considered to constitute unauthorised use of the subject of lease. In such a case the Lessor is authorised to demand payment of rent for the period until the return of the subject of lease, as well as a contractual fine of the amount of CZK 1 000.00 for each day of the delay in returning the subject of lease.

6. The Leaseholder may make an Agreement with the Lessor upon the extension of the originally arranged period. Extension may be requested only in writing, the Agreement is valid following confirmation by the Lessor and payment of the corresponding rent.

7. In the case of damage to the subject of lease, the Leaseholder is obliged to notify the Lessor of this matter immediately in writing (also by fax or e-mail), together with a brief description of the fault. In the case of loss of the subject of lease the Leaseholder is obliged to pay rent up to the time of reporting of the loss of the subject of lease.

8. With the exception of regular maintenance and preventive measures, the Leaseholder must not perform any repairs to the subject of lease, either itself or by means of a third party. Any use of non-standard equipment is prohibited.

9. The Leaseholder is obliged to ensure that employees handling the subject of lease are professionally trained in the use thereof.

V. Repairs and maintenance

1. The Leaseholder is obliged to ensure that no excessive deterioration or destruction of the subject of lease occurs, and must not disassemble or repair any components of the subject of lease.

2. The Lessor is obliged to perform an inspection of the subject of lease at the moment of its return or as soon as possible following its return by the Leaseholder. In the case that the Lessor determines any damage to the subject of lease caused by the Leaseholder, the Lessor shall inform the Leaseholder of this matter without delay, and no later than 7 days following the determination thereof. In the case that the Leaseholder does not make a statement on the damage to the subject of lease within 7 days of receipt of the notification of this damage from the Lessor, it shall apply that the Leaseholder acknowledges its liability for the damage in question and is obliged to compensate the Lessor for the damages caused.

VI. Insurance

1. The Leaseholder acknowledges that it is obliged to ensure any applicable insurance of the subject of lease at its own costs and liability.

2. During the course of the lease the Leaseholder is obliged to notify the Lessor in writing (also by fax or e-mail) of any accident, loss or damage which has occurred in connection with or as a consequence of the use of the subject of lease, or due to another cause, without delay following the determination thereof.

VII. Rent

1. The Lessor is authorised to demand a deposit as security for any ensuing damages upon confirmation of an order. The Lessor is not obliged to transfer the subject of lease to the Leaseholder until the deposit has been paid. The deposit shall be returned to the Leaseholder following the termination of the contractual relationship and above all after settlement of all obligations of the Leaseholder towards the Lessor.

2. The Leaseholder agrees that the paid deposit shall be used towards payment of any debt of the easeholder in payment of rent, a contractual fine or costs for the rectification of damage to the subject of lease caused by the Leaseholder. The deposit may be used towards payment of these amounts in the case that such amounts are not paid within 15 days of their maturity.

3. Rent is calculated according to the actual period (of days) of lease of the subject of lease. All rent privileges, discounts or bonuses become invalid if the Leaseholder transgresses the obligations stated in the order or in these General Conditions.

4. The Leaseholder is obliged to pay the Lessor rent according to the confirmed order within the agreed time periods, and no later than after the termination of the lease. Rent is due on the basis of an invoice compiled by the Lessor. Payment of rent must be implemented by the Leaseholder at the latest on the maturity date stated on the invoice.

5. In the case of delay on the part of the Leaseholder with payment of rent or other amounts charged by the Lessor, e.g. for repairs or maintenance of the subject of lease, the Leaseholder shall be obliged to pay a contractual fine of 0.1 % of the owed amount for each day of the delay. In the case of repeated delay the Lessor shall be authorised to terminate the contractual relationship in the manner outlined below.

6. In the case of a Leaseholder who is or has been in delay with payment of rent and who despite repeated reminders has not paid the debt within 21 days of the maturity thereof, the Lessor shall be authorised to refuse to conclude any further contractual relationship at any time in the future.

VIII. Termination of lease

1. The Leaseholder is obliged to return the subject of lease in the same technical condition in which it was loaned, and within the deadline, at the location and time arranged in the contract on lease.

2. Termination of lease shall occur upon the elapse of the period for which the lease was arranged. If the lease was arranged for an indefinite period, each of the contracting parties is authorised to terminate the lease without stating the reason, in which case the lease shall be terminated upon the elapse of the two-day period which commences on the day following the regular sending of the notice of cancellation in the form of a fax or e-mail message to the fax number or e-mail address stated by the Leaseholder in the order. In the case of failure to return the subject of lease the contract on lease shall not be renewed in accordance with Section 676 paragraph 2 of the Civil Code, and the Leaseholder shall be obliged to pay the arranged rent up to the moment of the actual return of the subject of lease; this does not affect the right of the Lessor to submit a proposal for rendering of the subject of lease at the relevant court at any time following the termination of the lease.

3. In the case of fundamental transgression of the provisions of the order or General Conditions of Lease, or if it is possible to assume from the conduct or financial situation of the Leaseholder that such a transgression shall take place on the part of the Leaseholder, the Lessor shall have the right to terminate the contractual relationship before the stipulated deadline, by means of immediate termination of the relationship of lease (notice of cancellation). The notice of cancellation shall be effected in writing, in which it may be sent by means of post, e-mail or fax (notice of cancellation), with the proviso that the notice of cancellation becomes effective on the day of its delivery to the Leaseholder. In the case of doubts the notice of cancellation shall be considered delivered on the 5th day following the day on which it was submitted to the post office or on the day of sending of the fax or e-mail message to the number or address stated by the Leaseholder. Fundamental transgression of the provisions of the contract on lease or the General Conditions of Lease is considered to cover in particular repeated or longer delay on the part of the Leaseholder with payment of the rent or other amounts invoiced by the Lessor, additionally use of the subject of lease in a manner which is inconsistent with the order or these General Conditions of Lease or the conclusion of any contract with a third party relating to the subject of lease. In the case of termination of the relationship of lease by notice of cancellation, the Leaseholder is obliged to pay the Lessor all amounts owed as of the day of termination of the lease, as well as any applicable contractual fine etc., within 14 working days of the receipt of the notice of cancellation at the latest. The Lessor is authorised to recover the subject of lease from the Leaseholder upon the moment of termination of the contractual relationship, even without the consent of the Leaseholder.

4. The Lessee agrees to the use of its e-mail address for sending offers of services and marketing or commercial notification from the Lessor. The Lessee can refuse sending of these messages at any time without any additional costs (via e-mail or other method free of charge). Handling of personal data of the Lessee is governed by Act No. 101/2000 Coll. on protection of personal data, sending of e-mail messages is governed by Act No. 480/2004 Coll. on some information society services. Data mentioned by the Lessee in the order shall be used solely for the purpose of proper realization and performance of the Lease. The personal data shall not be disclosed to any third party, or otherwise used without the consent of the concerned persons. By sending the order the Lessee agrees to collection of its personal data necessary for the purpose of realization and performance of the order, offer of the Lessor's services, marketing and related commercial notifications. The Lessee also agrees to video recording or pictures to be made of its person and their use for commercial and marketing purposes of the Lessor (website and promotional materials). In the case that the Lessee is a legal entity, it is obliged to obtain the consent of its staff or their collaborators. This consent can be withdrawn at any time by the Lessee.

IX. Concluding provisions

1. The parties to the contract designate the general court of the Lessor, i.e. the District court for Prague 10, as the locally relevant court for the resolution of any disputes ensuing from this contractual relationship, in accordance with the provision of section 89a of the Civil Court Regulations.

2. These General Conditions of Lease may be updated and amended by the Lessor during the course of the validity of this contract. For the Lessor and Leaseholder the up-to-date wording of the General Conditions of Lease, which is available at the website www.contech.cz, shall be binding throughout the course of the relationship of lease.

3. In the case that any of the provisions of these General Conditions of Lease are or become invalid or unenforceable, the validity and enforceability of the remaining provisions shall be unaffected. The rights and obligations of the parties as outlined by such a provision shall be governed by the corresponding arrangement of the generally binding legal prescriptions of the Czech Republic.

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