Government Decision No. 181 On approval of the model contract on lease without the right to purchase the property, 1994

THE DECISION OF THE GOVERN~IENT Of' THE REPUBLIC OF ARivlENIA "On Approval of the Model Contract on Lease without the Right to Purchase rhe Property" Arising from Sub-Item "b" of Article 19 as well as Item 6 of Article 38 of the Republic uf A1rnt:1.1ia'::, law "Ou P1ivdtiLaliuu aud Deuatiuualiatiuuuf P1uµe1 tie~ uf State Eutt::i µ1bt::!:i arnl Unfinished Constrnctions", the Government of the Republic of Am1enia hereby resolves: to approve the model contract on lease without the n'ght to purchase the property (attached!. H. Bagratian Pn'me Minister of the Republic of Annenia A. Khachatrian Executive Director of the Republic of Annenia 's Government April 20, 1994, No. 181, City of Yerevan Approved by the decision No. 181, dated April 20, 1994. of the Government of RA MODEL CONTRACT No. on Lease without the Right to Purchase the Property City of Yerevan " 199 I. General Provisions (Title of ROA Ministry, Department, Local Body of State Government) which, hereinafter, will be named as Lessor, represented by (Authorized Official's Full Name) w h o acts on the basis 0 t (Indicate the Document) 0 11 n e i d e n d (Data about the Lessee) which, will be no.mcd o.o Lcocee 1 (Data. about the Authorize Person) on the other side, have made the following contract. II. The Subject of the Contract l. The Le::;::;uL, vu Lhe condition~ atatcd in thio contract, confer1;1, .;:i.nd th Lessee t a k e s o v e r t h e property 0 (Title and Address of the Object) for years, until " 199 I 2 2, The Les.see lea~e~ the property in occordunce with the list ,: inventory and valuation statement hereby attached and considered as constituent part of this contract. 3. The lease amount of the object at the auction (bid) cf " Minutes No. 199 dated " " 19 const:i.tutE drams. ------------ (In Numbers and Words) III. Payment Condition.$ 4. The Lessee pays the Lessor the rent in the following manner: a) the rent payment is paid monthly according to the certificate give by the Lessor to the to account No. i (Title and Address of the Bank) b) payments are made taking into account the interest rate of the average bank deposit set at the moment of the periodic payment. IV. Lessee's and Lessor's Rights and Obligations 5. The Lessee shall be obligated, I a) to maintain, until 11 " 19 the type of production (services) the enterprise is already enqaged in; b) not to alter, until 11 " 199 the minimum number of employees working at the enterprise; c) to maintain th~ L:u::.LuUy u[ lt:::ct:::ied p1..-ope.i:t.y during the lea13e period, taking into account its physical dep~eciation; d) to perform and pay for the regular and on-going repairs of the leased property during the lease period; e) not to execute any transactions related to the alienation or pledgin of the leased property; f) not to ::::ublease, within a 12 month period from the date of signing this contract, the leased property; and g) * 3 6. Tht:: L~(:::H,H~e' s right~. a) proceeds gained from the use of the leased property are the Lessee's own property; b) the Lessee has the right to re-eq·..1ip and reconstruct t.he leased property, at his/he:r: own expense, Moreover I the Lessee is the owner of the resources acquired as a result of his/her inves:ments. This ownership shall be considered a physical asset if it is possible to detach it physically. Otherwise, the .iI1ve::,yu1. :::.hall be entitled to the v·a.luc of the a..dditiOrt,:\l resources invested. c)* 7. The Lessor shall be obligated: al to hand over to the Lessee, on the basis of the statement c acceptance and delivery 1 the property of the enterprise mentioned i Item 1 of Section II, above, no later than " " l..J) 1?t:.t.CutlH ,;iw.l pay for capital repairs of the lcoocd property; C * 8. The Lessor's rights: a) *2 I 4 199 V. Parties' Responsibilities 9. In case if the Lessee fails to pay within the period and the amount anticipated by the certificate given to the Lessee by the Lessor, the Lessee shall pay a penalty in the amount of 2 percent of the unpaid amount for each day late. 10. In case of refusal to pay the lease rent, the contract shall be recognized invalid in the manner established by law. A thirty (JO) day delay of the regular payment of the lease rent ~hall alao be considered as a refusal to pay. 11. The contract shall be recognized as invalid in case of infringement of obligations established by Items 5 and 7 of Section IV of this Contract, Compensation s:1all be 1nade in a manner established by the legislation of the Republic of Armenia. VI. concluding Provisions 12. This Contract shall enter into effect from the moment of signing it by the parties. 13. Disputes arisinq between the parties shall be settled in the manner established by the legislation of the Republic of Armenia. 14. Two copies of the Contract shall be drawn up in Armenian, one of which shall be kept by the Lessor and the other one by the Lessee. THE LESSOR THE LESSEE (Full Name) (Full Name! (Pr..:.i:::.i t.ion) (Address) Official Seal l 5 " 199 Accoun c No. J " * Other obligations are mentioned including the bid when property is leased through compet1t1ve mutually agreed 1.rpon rights. ENGLISH TRANSLATION BY: ICMA (USAID Contractor) Government Dept. o: Urban Policy Republic of Armenia Government House 1, Room 77 Republic Square, Yerevan Armenia, 375010 Local Tel.: (8852)-52-56-93 Intern. (Tel/Fax): 011-7-8852-151-350 Mailing Address: Steven J. Anlian, ICM.A Advisor, 11 C 11 USA.ID/Yerevan Department of State Washington, .DC 20521-7020 ICMA PRINTING DATE, May 15, 1994 (Phone Number; Official Seal 19 conditions of the b1dd1ng 1ncluct1ng