TENANCY AGREEMENT No._______

1^st September 2000

“St.Petersburg Properties Ltd.” being represented by its President, hereinafter referred to as “the Lessor”, on one side and the company “Neva” being represented by its CEO, hereinafter referred to as “the Tenant”, on the other side have concluded the present Agreement as follows:

1. THE SUBJECT OF THE AGREEMENT

1.1 The Lessor shall* let and the Tenant shall accept the premises, room 321, on the 1^st floor of the Business Center located 34, Sadovaya str., comprising 30 sq.m. The Premises shall be let to accommodate the office of the Tenant.

1.2 The transfer of the Premises shall be formalized with the Statement on transfer and acceptance.

1.3 The transfer shall be completed no later than 5 days after signing of the Agreement by both sides.

2. OBLIGATIONS OF THE PARTIES

2.1. The Lessor shall:

2.1.1. Within 5 days from the date of signing by the parties the present Agreement transfer to the Tenant the Premises indicated in Section 1.1. of the present Agreement.

2.1.2. Perform at its own expense the capital repairs of the Premises.

2.1.3. Secure due and full payment of all taxes.

2.1.4. Procure maintenance of the Premises, including: water supply, electricity, heating and other infrastructural services.

2.2. The Tenant shall:

2.2.1. Use the Premises in strict compliance with Section 1.1. of the present Agreement.

2.2.2. Observe the fire and constructional norms.

2.2.3. Timely perform at its expense the current repairs of the Premises.

2.2.4. Ensure the safety of technical equipment and electrical network at the Premises.

2.2.5. Refrain from letting the Premises to other persons to use.

2.2.6. Bear expenses related to the telephone charges.

2.2.7. Transfer fee for use of the Premises as determined by Article 3 of the present Agreement.

2.2.8. Bear full responsibility for the insurance of the Tenant’s possessions at the premises.

3. PAYMENTS

3.1. The fee for use of the Premises shall be 1,000 $ per month (exclusive of VAT and special taxes).

3.2. The fee for use of the Premises shall be transferred in installments in the amount of six months rent.

3.3. The term fee shall be transferred to the following account: Bankers Trust Co. St. Petersburg, …

3.4. The rent fee shall include all charges for provision of 24 hour security, hot and cold water, heating in accordance with the norm of the building, cleaning of common areas, electricity up to the value of …, which should equal normal consumption for the period of the lease.

4. TERMS OF THE AGREEMENT

4.1. The present Agreement should be concluded for a minimum six months term to be calculated from the day of its signing by both parties.

4.2. The present Agreement may be cancelled upon the demand of the Lessor:

4.2.1. If the Tenant uses the Premises other than in compliance with the Agreement

4.2.2. If the Tenant fails to pay for use of the Premises within a three months term.

4.3. The present Agreement may be cancelled upon the demand of the Tenant:

4.3.1. If the Lessor fails to perform capital repairs.

4.3.2. If the Premises is in a condition non-fit for use.

5. LIABILITIES OF THE PARTIES

5.1. In case of the non-transmittance of the fee for use of the Premises within the terms defined in Section 3.2. of the present Agreement the Tenant shall pay to the Lessor a fine.

5.2. In case of the Lessor’s failure to transfer the Premises within 2 days the Lessor shall pay to the Tenant a penalty.

6. DISPUTES RESOLUTION

6.1. The Parties shall take all reasonable measures to solve disagreements and disputes relating to the present Agreement by negotiations.

6.2. The Parties agree to apply the applicable law of Russian Federation for settlement of any dispute which may arise out of the present Agreement.

7. MISCELLANEOUS

7.1 The present Agreement and the correspondence related to it shall be in English.

7.2 All alteration and additions to the present Agreement are valid only in case of mutual written consent of the parties

7.3 The present Agreement comes into force after it has been signed by both Parties.

8. LEGAL ADDRESSES OF THE PARTIES

8.1. The Lessor: ST.PETERSBURG PROPERTIES Ltd.:

______________________________________________

______________________________________________

8.2. The Tenant : “NEVA” Co.

______________________________________________

______________________________________________

8.3. In case of alteration of the legal address, the bank or the bank account the Parties shall inform each other within five days.

9. SIGNATURES

On behalf of the Lessor On behalf of the Tenant

____________________ ______________________

Notes:

To lease = сдавать в аренду

a Lessor = арендодатель

a Tenant = арендатор

tenancy agreement = договор аренды

Miscellaneous = прочее

Discuss the Agreement using the following models:

Ex. 6 You are a business man trying to rent an office for your company. Your company provides educational services. You need several rooms for teaching foreign languages to students. Discuss with your partner the conditions of the tenancy agreement, the obligations and rights of the parties and terms of payment. Try to conclude “Agreement to provide educational services” with a student.