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Payment, Contractual and Technical Conditions

of events held in the premises of Kongresové centrum Praha, a.s. (Prague Congress Centre)                                                                                    
 

Annex to the Lease Contract

Article I
SUBJECT MATTER OF THE CONTRACT AND FUNDAMENTAL PROVISIONS

1. CONTRACTING PARTIES
These Payment, Contractual and Technical Conditions form an integral part of the Lease Contract (hereinafter the "Contract") agreed between Kongresové centrum Praha, a.s. (Prague Congress Centre) (hereinafter the "Lessor") and a natural or legal person (hereinafter the "Lessee") for the purposes of holding Events.

2. THE TERM "EVENT"
For the purposes of this Contract, an Event shall include, without limitation, a congress, conference, exhibition, presentation, a social, cultural or sports event or any other event for which the Lessor’s non-residential premises (hereinafter "premises") are leased or the Lessor’s works and services are provided.

3. SUBJECT MATTER OF THE CONTRACT
3.1. The subject matter of the Lease Contract is the Lessor’s obligation to render the premises of Kongresové centrum Praha, a.s. (Prague Congress Centre) (halls, rooms, exhibition premises or any other agreed premises, including all agreed facilities and installations), for usage by the Lessee, to provide, ensure or mediate all related services or services requested by the Lessee as specified in the Lease Contract or in its annexes, and finally the obligation of the Lessee to pay the pre-agreed price for the premises and for the services provided, and to adhere to the conditions as agreed herein when using the premises, facilities, equipment, installations, common areas and access roads of the Lessor.
3.2. By signing the Contract the Lessee declares that he is fully acquainted with the premises and confirms that the premises are in a state which is elegible for the agreed purpose of use and has no faults which could prevent or obstruct the usage and enjoyment of the premises for the agreed purpose.

 
Article II
RESERVATION OF AN EVENT AND PROVISION OF  WORKS AND SERVICES
 
1. RESERVATION OF AN EVENT AND CONSLUSION OF THE LEASE CONTRACT
The Lease Contract is concluded upon an event reservation and other below-described undertakings by the Contracting Parties.
1.1. Non-binding reservation (so-called Option)
If the Lessee informs the Lessor of his/her intention to hold an event in the Lessor’s premises, the Lessor shall provide him/her with the preferential right to conclude the Lease Contract for the term for which the Lessee applies or for any other agreed term and, at the same time, the Lessor informs the Lessee of the duration of this preferential right (option) and of the date on which the option shall terminate unless availed. By establishing the right of first option for the Lessee, the Lessee is not obliged to conclude the Contract or to pay the advance payment, however he/she shall be obliged to invite the Lessor to negotiate conclusion of the Contract no later than 30 days before the last day of the option. In the event  the Lessee fails to demonstrate any interest in concluding the Contract during the duration of the option, or in the event the Contract is not concluded 30 days prior to the last day of the option, the Lessor is entitled to lease the premises to any other party or enter negotiations with another party regarding conclusion of the Contract. The Lessor is not obliged to inform the Lessee about  expiry of the option.
1.2. Lease Contract
For the purposes of realization of the Event, the Lessee shall conclude a Lease Contract with the Lessor stipulating the rights and duties of both Contracting Parties, the venue and date of the Event as well as all other appurtenances of the Event, and listing all special services requested by the Lessee and provided or ensured by the Lessor.

2. SERVICES PROVIDED BY THE LESSOR
Before signing the Contract the Lessor shall provide the Lessee with the list of all available services stating the prices thereof (hereinafter the "Price list"). No later than 30 days prior to the beginning of the Event and unless agreed otherwise, the Contracting Parties shall agree on the extent of such services in a special annex to the Contract. Payments for services provided shall be invoiced to the Lessee separately, either together with the payment of the Rent or separately.

 
Article III
PAYMENT CONDITIONS
 
1. PAYMENT OF RENT
1.1. Should the Contract be concluded earlier than 24 months prior to the Event, the non-refundable deposit amounts to 3-5 % of the total amount agreed as the Rent. Should the Contract  be concluded within 24 to 12 months prior to the Event, the non-refundable deposit amounts to 5-10 % of the total amount agreed as the Rent. The deposit matures 30 days after the day of concluding the Contract. Payments of other deposits become due within 12 months prior to  the Event as follows:
1.1.1. Within the 9th and 12th month prior to the Event the advance deposit of the Rent amounts to 10-20 % of the agreed Rent
1.1.2. Within the 6th and 9th month prior to the Event the advance deposit of the Rent amounts to 30-40 % of the agreed Rent,
1.1.3. Within the 3rd and 6th month prior to the Event the advance deposit of the Rent amounts to 30- 40 % of the agreed Rent
1.2. Should the Contract be concluded 6-12 months before the Event, the instalments are payable within separate periods according to the above-mentioned schedule using a cumulative method.
1.3. Should the Contract be concluded less than 6 months prior to the Event, the instalments become payable as follows (a cumulative method may also be applied):
1.3.1. Within the 3rd and 6th month prior to the Event the advance deposit of the Rent amounts to  40-50 % of the agreed Rent.
1.3.2. Within the 1st and 3rd month prior to  the Event the advance deposit of the Rent amounts to 40-50% of the agreed Rent.
1.4. The Rent must be paid to the full extent (100%) at least 7 days prior to the Event.
1.5. The Rent for premises that the Client ordered in the course of preparation, and/or during the Event shall be paid within 14 days (30 days for foreign-registered Lessees) after the termination of the Event.
1.6. Specific amounts of partial advance payments shall be agreed in Annex no. 1 (Price List for Rent of the Premises).

2. PAYMENT OF ORDERED SERVICES
2.1. The Lessee further undertakes to pay for all services according to Article II, Point 4 hereof that he/she ordered for realization of the Event upon agreement with the Lessor as follows:
2.2. Gastronomic and other services
2.2.1. 75% of the amount for other services ordered shall be paid by the Lessee to the Lessor under terms agreed by both Contracting Parties but no later than at the beginning of the Event.
2.2.2. The remaining 25 % of the amount for other pre-ordered services and other services that the Lessee ordered in the course of preparation and/or during  the Event within the meaning of Annex no. 2 to the Lease Contract, shall be invoiced by the Lessor and paid by the Lessee within 14 days (for Lessees from the Czech Republic), or 30 days (for foreign-registered Lessee) after the termination of the Event.
2.3. Contractual fine for cancellation of an ordered service
The contractual fine for cancelling ordered services is calculated according to number of working days prior to the  agreed commencement of the lease as follows:
During the Event – 100 % of the catalogue price of the service; 0- 1 days- 100 % of the catalogue price of the service; 2-3 days – 75 % of the catalogue price of the service; 4-5 days- 50 % of the catalogue price of the service; 6-7 days- 30 % of the catalogue price of the service.
2.4. Increase of prices for services ordered late:
When ordering services 13 days and less before the agreed commencement of the term of the Lease, the Lessor is bound by the order only if he/she explicitly confirms provision of the requested services to the Lessee.
2.5. The increase of service prices in case of an order after the standard term is counted according to number of working days prior to the agreed commencement of the lease as follows:
6-4 days prior to the Event 20 % of the catalogue price of the service; 3-2 days- 40 % of the catalogue price; 1-0 day – by 50 % of the catalogue price of the service; during the Event – by 50 % of the catalogue price of the service

3. DELAY
3.1. All payments due under the terms of the Contract are to be made in Czech crowns (hereinafter CZK).
3.2. In the event the Lessee is in arrears with fulfilment of his/her payment obligations pursuant to the Contract and the Lessor thus completely or partially cancels his/her collaboration in preparation of the Event until the moment this failure is remedied by the Lessee, the Lessor is not in delay with fulfilment of his duties and the Lessor shall not be held liable for any damage incurred to the Lessee due to such suspension of his/her obligations pursuant to the Contract.
3.3. Should the Lessee be in arrears with payment according to the final invoice (the difference not covered by the advance payment), he/she shall pay a delay interest to the amount of 0.5 ‰ of the outstanding amount for every day of the delay.

 
Article IV
CANCELLATION OF THE CONTRACT
 
1. CONTRACTUAL FINE
The Lessee is entitled to give notice without stating any reason and without notice period. In case the notice is given by the Lessee and in case of reduction of the scope of the Event by the Lessee or by the Lessor due to reasons on the part of the Lessee, the Contracting Parties agree to a contractual fine to the amount stated in Section 2 of this Article. The Lessor is not entitled to give notice; the Lessor is only entitled to withdraw from the Contract pursuant to Section 3 of this Article. The Contracting Parties agree to a contractual fine to the amount stated in Section 2 of this Article in the event the Lessor withdraws from the Contract.

2. REDUCTION OF  SCOPE OF EVENT
Should there be even a partial reduction of the scope of the agreed Event as defined  in the Annex to the Contract by the Lessee or the Lessor due to reasons on the part of the Lessee (hereinafter "limitation of Event") and should the Lessee give notice or the Lessor withdraw from the Contract, the Lessor or the Lessee is entitled to claim a contractual fine for cancellation of the Event (hereinafter "Cancellation Fee") as follows:
2.1. In case the Event is restricted six or more months prior to the day of its commencement, the Cancellation Fee amounts to 50 % of the agreed Rent
2.2. In case the Event is restricted less than six months prior to the day of its commencement, the Cancellation Fee amounts to 75 % of the agreed Rent
2.3. In case the Event is restricted three or less weeks prior to the day of its commencement, the Cancellation Fee amounts to 100 % of the agreed Rent

3. WITHDRAWAL FROM THE CONTRACT
Regardless of any other legal rights, the Lessor is entitled to withdraw from the Contract under the following circumstances:
3.1. The Lessee fails to fulfil his/her fundamental obligations stipulated in the Contract, i.e. namely if he/she fails to meet any of his/her payment obligations mentioned in previous articles.
3.2. The Lessee even partially changes the subject, purpose or contents of the Event against the originally agreed terms and conditions without the prior written consent of the Lessor, or
3.3. The Lessor upon concluding the Contract, or commencement of the Event, discovers on the leased premises or on the part of the Lessee such circumstances that could jeopardize public safety or public order or that may cause risk of damage to Lessor’s goodwill, injury or damage to the premises or any other infringement of legal regulations, and the Lessee fails to remove the discovered flaws within the  stipulated period following notification of the Lessor.
3.4. Notice of withdrawal must be delivered in writing and shall become effective as of the day of its delivery to the Lessee.
 

Article V
LIABILITY AND INSURANCE

1. LIABILITY FOR EVENT REALIZATION
Throughout the entire period of preparation and the course of the actual Event, the Lessee shall be held liable for the Lessor’s premises provided to him/her by the Lessor for the purpose of  realization of the Event, likewise for the safety of persons in the leased premises. The Lessee shall be exempt of liability if he proves that the damage was caused by a  force majeure.

2. LESSOR’S LIABILITY
The Lessor shall be held liable for harm caused by violation of his/her obligations according to pertaining legal regulations and provisions of the Contract.

3. DAMAGES
The Lessee shall be obliged to compensate the Lessor for harm inflicted in connection with preparation, course and liquidation of the Event due to the Lessee. Throughout the entire period of preparation, course and liquidation of the Event, the Lessee undertakes to observe safety, fire protection, sanitary and environmental regulations stipulated by generally binding legal regulations of the Czech Republic.

4. INSURANCE
The Lessee is obliged to maintain at his/her own expense all necessary insurances to cover the risks associated with hosting the Event, namely possible damage or injury caused to third parties or against property that could happen in connection with realization of the Event.

5.LIABILITYFOR LESSEE’S POSESSIONS  BROUGHT ONTO THE PREMISES.
The Lessee is solely liable for all damage caused to possessions  he/she or other persons agreed by him/her brought onto the premises. No contract on deposit or storing between the Lessee and the Lessor shall arise by bringing such possessions onto the premises or storing them on the premises.
 

Article VI
OBLIGATIONS OF THE LESSEE

1. ORGANIZATION AND PROMOTION OF THE EVENT
1.1. In the interests of preparation of the Event the Lessee shall submit to the Lessor specific information about organizational matters connected with preparation and hosting of the agreed Event no later than 30 days prior  to the commencement of the Event. Should disabled persons be due to attend the Event, the Lessee is obliged to inform the Lessor of this fact with sufficient prior notification. In the event  the Lessee fails to meet his/her obligation to notify  the Lessor, the Lessor is entitled to fully or partially suspend his/her cooperation on preparation of the Event until the moment when this failure on the part of the  Lessee is remedied. In such a case the Lessor shall not be held liable for any harm caused in consequence, not even in the event that the Lessor renews his/her collaboration with the Lessee in preparation of the Event.
1.2. Unless explicitly agreed otherwise, the Lessee is responsible for promotion of the Event and he/she shall proceed in accordance with the pertaining legal regulations. For pasting up printed promotional materials (posters) the Lessee may use only designated surfaces as agreed with the owner or operator.

2. USAGE OF THE STAFF OF THE LESSOR
Technical equipment owned by the Lessor may be used only by the Lessor’s staff or other persons authorized by the Lessor.

3. LIABILITY FOR OPERATION OF TECHNICAL EQUIPMENT
3.1. The Lessee is entitled to use only such technical equipment that meets all conditions and standards stipulated by pertaining  legal provisions regulating their usage, and only in such a manner as is stipulated by pertaining legal and/or technical regulations or standards for their usage. Only professionally qualified employees in sufficient condition of health are entitled to operate technical equipment. Welding or cutting works on the entire premises of the Lessor are  permitted only with the prior consent of the Lessor. The Lessor is not liable for any technical faults caused to the equipment installed by the Lessee or for any harm incurred as a result of such faults.
3.2. The Lessee may only use his own audio-visual equipment on the premises of the Lessor if the Lessor provides prior agreement in written form.

4. TAKEOVER OF LEASED PREMISES
4.1. The Lessor shall hand over and the Lessee shall take over the leased premises, its equipment and facilities before commencement of the Event. A handover report shall be drawn up upon handover of the premises, its equipment and facilities. In the handover report or annex thereof the Lessee shall be obliged to list and describe all defects he identified in the leased premises, its equipment and facilities.
4.2. The Lessee shall not exceed the capacity of the leased premises.

5. ARRANGEMENT OF PREMISES
5.1. The Lessee is entitled to arrange the leased premises, to install heavy or large objects or technical equipment, decorations, billboards, posters or other promotional material as well as other equipment solely upon the prior consent of the Lessor. In preparation, realization and liquidation of the Event the Lessee shall be obliged to observe the Lessor’s operating instructions. The Lessee is entitled to use the technical equipment and other fittings owned by the Lessor only with the latter’s prior consent and according to his instructions.
5.2. In case of installation of an exhibition on the leased premises, the Lessee shall receive instructions from the Lessor containing descriptions of all technical, safety and disposal conditions and instructions regarding the organization of the exhibition. The Lessee undertakes to fully adhere to these terms and conditions. Permission to hold an exhibition event is subject to written consent issued by  the Lessor complete with a plan for the placement of individual exhibition stands and other elements of the exhibition on the leased premises. The  exhibition stands must be placed according to the approved plans. A fire safety cordon of at least 150 cm between exhibition stands and glass-surfaces in the building must be observed. No flammable or combustible materials shall be placed by the glass surfaces outside the building.
5.3. All arrangements of the premises carried out by the Lessee require the prior written consent of the Lessor; the arrangements of the premises are carried out by the Lessee at his/her own expense. In the event of betterment of the premises resulting from the arrangements, the Lessee is not entitled to any reimbursement following termination of the lease regardless of the cause of termination.

6. DISMANTLING AND RETURNING THE PREMISES TO ORIGINAL STATE
The Lessee shall return the premises and its equipment and facilities to its original state on the day of the termination of the lease and shall dismantle and remove all objects and equipment brought on to the premises. A takeover report shall be drawn up between the Lessor and the Lessee upon takeover of the premises, its equipment and facilities. In the event any damage to the leased premises is  discovered on takeover of the premises by the Lessor, the Lessor shall list and describe all the damages and inform the Lessee thereof. The Lessee shall be obliged to pay the Lessor compensation for the damage to the amount corresponding to the repair costs or the costs of purchase if any part of the Lessor’s premises or property which is irrecoverable.

7. CATERING
7.1. Catering and gastronomic services shall be provided to the Lessee based on the Contract. These services shall be provided by persons authorized pursuant to special regulations through a contractual partner of the Lessor.
7.2. With the prior written consent of the Lessor, the Lessee is entitled to arrange catering and gastronomic services by third parties of his/her own choice. In such case the Lessee shall be obliged to ensure that the provision of catering and gastronomic services is in accordance with all legal and hygiene regulations and he/she shall be liable for all damages caused to the Lessor as a result of the actions of the provider of catering services.
Further, the Lessee shall be obliged to ensure that all points of distribution of catering or gastronomic services provided by the third party (hereinafter only as the “Provider”) as selected by him/her are visibly identified  by their respective business name and company registration number. The Provider’s business name must be displayed in the same wording as the name of the Provider as registered in the Commercial Register, or any other respective register. The name and identification of the Provider will be placed on a rectangular sign board where the shorter width is at least 8 cm. The sign will be landscape-orientated and rendered  in sufficiently legible font (or block letters) with the height of letters exceeding 3 cm. Should the Lessee fail to ensure placement of this sign board or should the sign board fail to adhere to the above-mentioned requirements, or should it be illegible, the Lessor is entitled to demand  from the Lessee a contractual fine  to the amount of CZK 50,000 (fifty thousand Czech crowns).

8. ADVERTISEMENT AND SALE OF SERVICES
The Lessee is not entitled to sell or offer products or services to third parties beyond the leased premises unless the Lessor provides his consent in writing in advance. In case of a breach of this obligation on the part of the Lessee, the Lessor is entitled to demand a contractual fine to the amount of CZK 450,000 (four hundred fifty thousand Czech crowns) for every such individual breach.

9.ACCESS TO THE LEASED PROPERTY AND MOVING IN THE LESSOR’S PROPERTY
9.1. The Lessee shall be obliged to observe all safety regulations stipulated by the Lessor regarding  access, moving around and occupying and usage of rooms, halls or facilities of the leased premises. In particular, the Lessee undertakes not to use personnel elevators to transport any sizable  loads. Only the freight elevators may be used for vertical transportation of loads. During transportation and manipulation with loads the Lessee must act so as not to damage or pollute the Lessor’s premises, its equipment and facilities. Should the Lessee use trolleys for transportation of loads, the trolleys must be equipped with bantam wheels.
The Lessor is entitled to demand a contractual fine from the Lessee to the amount of CZK 10,000 (ten thousand Czech crowns) for every such breach of the Lessee’s obligations..
9.2. Further, the Lessee  shall be obliged to respect the ban on smoking in all halls during preparation, course and liquidation of the Event. Smoking is allowed only in clearly marked designated areas. This ban also applies to stages and backstage areas. Upon violation of this ban the Lessee shall be obliged to pay to the Lessor a contractual fine to the amount of CZK 20,000 (twenty thousand Czech crowns) for every discovered instance of breach of this ban.

10. USE OF ROADS AND PUBLIC PREMISES OF THE LESSOR
10.1. Without the prior consent of the Lessor, the Lessee is not entitled to do anything that could lead to limitation of access and movement on purpose-built access roads of the Lessor, supply routes on the 1st underground storey, or any  other area of the Lessor’s public premises. Hindrance of access and movement namely implies placing objects (boxes, furniture, trolleys etc.) in those routes and parking vehicles beyond the boundaries of demarked areas reserved for loading and unloading.
10.2. Usage of the public premises of the Lessor for the purposes of loading and unloading of materials and goods for the Event is defined as follows:
10.2.1. Parking of vehicles for the purposes of loading and unloading is allowed only in marked areas that are defined as follows:
a) guarded area on the outdoor premises of the Prague Congress Centre  bounded by entrance gate - vehicles may only be driven along the grey supply belt while parking and unloading is only allowed on the red belt – parking and driving on blocks is prohibited.
b) guarded area bounded by entrance gate at gatehouse V 3 – basement of the Lessor’s building, 1st underground storey, hereinafter only as the " loading and unloading area".
10.3. Entrance and parking of Lessee’s vehicles or vehicles of a carrier arranged by the Lessee (hereinafter only as the "Lessee") in loading and unloading area is subject  to a deposit payment for  security to the amount of:
a) CZK 2,000 (two thousand Czech crowns) per motor vehicle weighing up to 2.5 tons,
b) CZK 3,000 (three thousand Czech crowns) per motor vehicle weighing up to 3.5 tons,
Unloading means unloading goods and materials from a vehicle to the loading and unloading area. Loading means loading the goods and material to the vehicle from the loading and unloading area.
10.4. The security deposit  shall be refunded to the Lessee on condition that loading/unloading is carried out as follows:
a) For vehicles weighing up to 3.5 tons a time limit of 1 hour (60 minutes) as of entrance to the loading and unloading area applies;
b) For  vehicles weighing above 3.5 tons a time limit of 2 hours (120 minutes) as of entrance of the vehicle to the loading and unloading area applies;
10.5. If the vehicle fails to leave the loading and unloading area within 1 hour (60 minutes) following the end of the respective time limit, the Lessee will be obliged to pay a parking fee of CZK 500 (five hundred Czech crowns) for  each subsequent hour commenced.

11. OPERATING MEASURES
11.1. The Lessor shall advise the Lessee of all respective operating, technical and safety measures in sufficient advance before the commencement of the Event. The Lessee shall be obliged to acquaint himself/herself with these measures.
11.2. There is a general ban throughout the  premises of the Lessor to store, use or handle flammable and combustible materials and liquids, including all fireworks, propane-butane burners, cookers and electric heaters, pressure bottles with technical gas, e.g. propane-butane, and manipulation with open fire. Exceptions to these restrictions may be granted solely upon the prior consent of the Lessor and on condition that the Lessee shall ensure abidance to the pertaining  legal and technical standards and instructions of the Lessor throughout the entire duration of  manipulation with the above-stated substances or equipment.
11.3. The Lessee shall be obliged to prove all fire protection and technical specifications (AFTS – flammability of the 1st, 2nd, 3rd level) of all substances, objects goods and other tangible items located in any part of the leased premises of the Lessor throughout the preparation, realization and liquidation of the Event (in the case of exhibition, sale, storage or other usage).
11.4. Parking of vehicles equipped with permanent or alternative CNG or PB powered motors is forbidden in the underground garages of the Prague Congress Centre.

12. EMERGENCY EXITS AND HEALTH AND SAFETY MEASURES  ON  THE LEASED PROPERTY
12.1. All corridors and emergency exits, emergency lighting, fire extinguishers and fire alarms shall be secured throughout the preparation, course and liquidation of the Event and the Lessee shall ensure that the premises and entrances to the leased premises are kept free from any obstacles.
12.2. Exhibition stands must be arranged according to the plan approved by the Lessor prior to the Event and all alleys must be kept clear of any obstacles.



13. SPECIAL CONTRACTUAL PARTNERS
Activities conducted by the Lessee, the  performance of which is subject to  special conditions for the purposes of adhering  to health and safety regulations, may only be performed by appropriately qualified persons with prior approval from the Lessor. Such approval shall not be delayed or refused without legitimate grounds. .

14. PERMITS, PERFORMING RIGHTS AND COPYRIGHT
14.1. In  the event that the arrangement of the leased premises, usage of any equipment, or any other activity intended by the Lessee in connection with realization of the Event requires permission from an organ of state administration or any other institution or persons, such permits shall be procured by the Lessee at his/her own expense.
14.2. The Lessee shall be obliged to obtain from the relevant  persons or bodies at his/her own expense all permits for performance or application of legally protected rights associated with the Event.
14.3. If the Lessee fails to obtain the above-listed permits and a fine or other sanction is imposed on the Lessor due to such a failure on the part of the Lessee, the latter shall be obliged to pay the Lessor the amount of the fine or other sanction and eventually all additional costs connected with the fine or other sanction (attorney’s fee, charges etc.) within 15 days of the moment the Lessee is requested for reimbursement by the Lessor.
14.4. During the Event, the Lessor is entitled to make audio and video recordings for the purposes of press, radio, television and similar media services. All event participants and speakers may be recorded. All recordings will be intended for the promotion of the Prague Congress Centre, e.g.  posted on the on company website, used in presentations of the Prague Congress Centre etc. The Lessee agrees with the making and use of recordings for the promotion of the Prague Congress Centre and is responsible for obtaining the consent of all event participants so as to ensure that the Lessor does not infringe the rights of event participants by making and using the recordings.

15. FORCE MAJEURE
In the event of any harm caused by acts or facts beyond the control of the Contracting Parties, none of the Parties shall be held liable to the other Party for such harm. Those acts and facts include natural disasters affecting or endangering the leased premises, realized or threat of terrorist attacks in the area of the City of Prague during the realization of the Event, and strikes with potential to disrupt  the Event. Strikes disrupting the  realization of the Event are such strikes where the number of participants exceeds the number of persons participating in the realization of the Event, unless their activity or services could be replaced.

16. TERMS AND CONDITIONS FOR LEASE OF TANGIBLE ITEMS
16.1. All prices stated are valid for 1 calendar day unless the heading of the service offer states otherwise.
16.2. The Lessee is responsible for checking the state at takeover. A handover record shall be drawn up upon handover of the items in question.
16.3. The Lessee is liable for possible harm to the leased tangible items to full extent.
16.4. The Lessor shall be obliged to take over items within the stipulated term and check its state. A record is to be drawn up in the presence of both Contracting Parties of the takeover for the discovery of possible deviations. In case of any damage a survey report shall be elaborated. The Lessor does not waive his right to claim compensation for hidden damages to equipment that in all likelihood resulted from use thereof during the Event.
16.5. Should any defects be identified in the leased tangible items against the original state during the takeover (visual damage, functional damage, operating incapability, loss etc.), the Lessee shall be obliged to pay the Lessor the compensation for the damage to the amount corresponding to the repair costs or the cost of replacing the item(s) if the damaged item(s) is irrecoverable.
16.6. The Lessee shall return the leased tangible item(s) on the day and at the hour as pre-agreed. If the Lessee fails to meet the term of return of the equipment, the Lessor is entitled to payment of a contractual fine to the amount of the daily fee plus 20 % of the catalogue daily price for the service.

 
Article VII
FINAL PROVISIONS

1. Failure to exercise any right agreed in the Contract shall not be regarded or interpreted as a waiver. By payment of a contractual fine according to the Contract, the right for damages shall not be affected.

2. The invalidity or unenforceability of any provisions of the Contract shall in no case cause invalidity or unenforceability of any other provisions hereof or of the Contract as a whole. Should the Contracting Parties fail to agree on another provision replacing the invalid or unenforceable provision, it shall be considered that such invalid or unenforceable provision was not agreed at all.
 
3. No modification of the Contract shall bind either party unless in the form of a written amendment in ascending numerical order. Amendments which do not meet the requirements stated in the preceding sentence are invalid. Either Contracting Party is entitled to challenge the validity of the Contract or its amendment due to failure to comply with the form even if the performance of the Contract has begun.
 
4. The Lessee by his signature on the Contract assumes the risk of change in circumstances in accordance with the provision of Section 1765 of the Civil Code of the Czech Republic. The Contracting Parties waive their right to withdraw from the Contract in accordance with respective provisions of the Civil Code (namely provisions of Sections 1977 to 1979 and 2002 to 2004 shall not apply). The Contracting Parties explicitly confirm that the essential conditions of the Contract are the result of negotiation between the Contracting Parties and that either Contracting Party was able to influence the essential conditions of the Contract. The provisions of Sections 1799 and 1800 of the Civil Code shall not apply on the rights and obligations arising from the Contract. The following provisions of the Civil Code shall not apply on the rights and obligations arising from the Contract: Sections 647, 1805 subsection 2, 1951, 1971, 2000 (the application of this provision can be excluded only if the Lessee is a legal person), 2208, 2210 Subsection 2 and 3, 2212 Subsection 2 and 3, 2218, § 2219 Subsection 2, 2223, 2232, 2233 Subsection 2, 2253, 2285, 2287, 2303, 2308 to 2311. The Contracting Parties exclude in relation to claims arising out of the Contract the application of the provision of Section 1987 Subsection 2 of the Civil Code and they stipulate that even precarious and indeterminate claim is eligible for setoff. The response to the offer of either Contracting Party with modifications in accordance with the provision of Section 1740 Subsection 3 of the Civil Code is not an acceptance even if it does not substantially alter the conditions of the offer. This applies to the process of concluding an amendment as well.
 
5. The Lessee is not entitled to any compensation from the Lessor or from the new lessee of the premises or its part for the Lessee’s customer base takeover (for the advantage acquired by the takeover) in connection with the termination of the Contract in accordance with the provision of Section 2315 of the Civil Code. If the Lessee acquires advantage by the previous lessee’s customer base takeover and the previous lessee claims compensation from the Lessee or from the Lessor, the Contracting Parties agreed that the Lessee shall pay the compensation in the full extent.
 
6. For the purpose of delivery between the Contracting Parties, the following rules shall apply instead of the provision of Section 573 of the Civil Code: The addresses of the Contracting Parties listed in the heading of the Contract shall be used for delivery. In case of delivery by postal service operators the paper shall be considered delivered even if the addressee fails to collect the paper within 10 days from the day the paper was ready for collection. The postal service operator shall place the paper in a letterbox after the expiry of the 10 days period. The paper is considered to be delivered on the tenth day of the collection time. 
 
7. If the Lessee owes the Lessor several debts, any consideration shall be set off in the following order: a) the Rent, b) delay interest, c) other claims. The consideration shall be set off against the claim respecting the maturity of the claim, irrespective of whether the claim was reminded or not. If the Lessor owes the Lessee several debts, any consideration shall be set off in the following order: a) principal, b) accessories. The consideration shall be set off against the claim respecting the maturity of the claim, irrespective of whether the claim was reminded or not.
 
8. The Contracting Parties do not wish to give rise to rights and obligations beyond the explicit provisions of this conditions and the Contract from existing or future practices established between the Contracting Parties or general customs or customs of the branch of law to which the premises belongs, unless agreed otherwise in the Contract. Aside from previously listed, the Contracting Parties confirm that they are not aware of any business customs or practises established so far.
 
9. The Lessor expressly demands that the Lessee fulfil all general and binding regulations including statutes defining the criminal liabilities of legal persons. The Lessee is obliged to implement a programme aimed at ensuring adherence to legal regulations and to provide instruction to his employees aimed at ensuring adherence to legal regulations. By signing the Contract the Lessee proclaims that in accordance with Art. 8, Para. 2, Letter b) of Law No. 418/2011 ‘On the Criminal Liabilities of Legal Persons and Related Procedures’, the relevant organs of the Lessee will implement measures as proscribed by legal regulations or which can be justifiably demanded, namely the systematic execution of obligatory or required checks and controls of his employees or other persons for whom he is responsible in order to prevent or limit the consequences of criminal acts as defined by the law cited herein. In the event of a criminal act as defined by the law cited herein, the Lessee will undertake all necessary measures to limit the consequences of the criminal act(s). The Lessee is obliged to keep orderly accounting records. The Lessor reserves the right to conduct audits with the aim of verifying adherence to the provisions of the specified legal regulations by the Lessee for the period of validity of this Contract and for five years following the termination or expiry thereof. Further, on the premises of the Lessor the Lessee is obliged to adhere to the Ethical Code of the Lessor, which is published on the Internet website of the Lessor and with which the Lessee acquainted himself prior to signing the Contract. Above all the Lessee is obliged to instruct his employees on the necessity of fulfilling ethical reporting responsibilities via email etika@kcp.cz .
 
10. The Contracting Parties agreed that apart from matters listed in the provision of Section 2913 Subsection 2 of the Civil Code, the wrongdoer is relieved of the obligation to pay the compensation by extraordinary, unforeseeable and impassable obstacle which arose independently of his will in delay with his/her obligations pursuant to the Contract, however, only from the moment of creation of such obstacle.
 
11. The Contracting Parties are entrepreneurs; the conclusion of the Contract falls within the framework of their business activity. Consequently, the provisions of Sections 1793 to 1795 (lesion beyond moiety) and Section 1796 (usury) of the Civil Code shall not apply on the Contract.
 
12. Either Contracting Party shall bear its own costs and expenses (including attorney’s fees and accounting fees and similar expenses) incurred in connection with the Contract and the transactions contemplated hereby.
 
13. The Lessor is entitled to alter these general terms and conditions at any time. The Lessee shall be notified about the alteration via publication on the website of the Lessor; the new terms and conditions shall be sent to the email address listed in the heading of the Contract or in writing. The Lessee is entitled to refuse the alterations within 14 days from the email or written notification. The Lessee is also entitled to give notice within the prescribed time; the notice period is 1 month and it commences upon the day of the delivery of the notice.  


 
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