Exhibit 10
COMMERCIAL LEASE AGREEMENT
This Commercial Lease Agreement (Lease) is entered into on this 25th day of
October, 2006, by and between Xxxxxx Xxxx (Landlord) and Loreto Corporation
(Tenant). Landlord is the owner of land and improvements whose address is: Xxxxx
Xxxxxxx #0000 Xxxxx. Playas De Tijuana, Jardines Del Sol, Playas De Tijuana, BC
Mexico 22517.
Landlord desires to lease the Leased Premises to Tenant, and Tenant desires to
lease the Leased Premises from Landlord for the term, at the rental and upon the
provisions set forth herein.
THEREFORE, in consideration of the mutual promises contained herein, and for
other good and valuable consideration, it is agreed:
Term.
The Initial Term of the Lease shall begin on the 1st day of November, 2006, and
continue on a month-to-month basis. Landlord shall use its best efforts to put
Tenant in possession of the Leased Premises on the beginning of the Lease term.
If Landlord is unable to timely provide the Leased Premises, rent shall xxxxx
for the period of delay. Tenant shall make no other claim against Landlord for
any such delay.
Rent.
Tenant shall pay to Landlord during the Initial Term rent of Two Hundred Fifty
Dollars ($250) per month. Each installment payment shall be due in advance on
the first day of each calendar month during the lease term to Landlord.
Tenant shall also pay to Landlord a "Security Deposit" in the amount of Five
Hundred Dollars ($500 ).
Sublease and Assignment.
Tenant shall not sublease all or any part of the Leased Premises, or assign this
Lease in whole or in part without Landlord's consent, such consent not to be
unreasonably withheld or delayed.
Repairs.
During the Lease term, Tenant shall make, at Tenant's expense, all necessary
repairs to the Leased Premises. Repairs shall include such items as routine
repairs of floors, walls, ceilings, and other parts of the Leased Premises
damaged or worn through normal occupancy, except for major mechanical systems or
the roof, subject to the obligations of the parties otherwise set forth in this
Lease.
Alterations and Improvements.
Tenant, at Tenant's expense, shall have the right, upon obtaining Landlord's
consent, to remodel, redecorate, and make additions, improvements and
replacements of and to all or any part of the Leased Premises from time to time
as Tenant may deem desirable, provided the same are made in a workmanlike manner
and utilizing good quality materials. Tenant shall have the right to place and
install personal property, trade fixtures, equipment and other temporary
installations in and upon the Leased Premises, and fasten the same to the
premises. All personal property, equipment, machinery, trade fixtures and
temporary installations, whether acquired by Tenant at the commencement of the
Lease term or placed or installed on the Leased Premises by Tenant thereafter,
shall remain Tenant's property free and clear of any claim by Landlord. Tenant
shall have the right to remove the same at any time during the term of this
Lease provided that Tenant shall repair, at Tenant's expense, all damage to the
Leased Premises caused by such removal.
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Property Taxes.
Landlord shall pay, prior to delinquency, all general real estate taxes and
installments of special assessments coming due during the Lease term on the
Leased Premises, and all personal property taxes with respect to Landlord's
personal property, if any, on the Leased Premises. Tenant shall be responsible
for paying all personal property taxes with respect to Tenant's personal
property at the Leased Premises.
Insurance.
If the Leased Premises or any other part of the Building is damaged by fire or
other casualty resulting from any act of negligence by Tenant or by any of
Tenant's agents, employees or invitees, rent shall not be diminished or abated
while such damages are under repair, and Tenant shall be responsible for the
costs of repair not covered by insurance.
Landlord shall maintain fire and extended coverage insurance on the Building and
the Leased Premises in such amount as Landlord shall deem appropriate. Tenant
shall be responsible, at its expense, for fire and extended coverage insurance
on all of its personal property, including removable trade fixtures, located in
the Leased Premises.
Tenant and Landlord shall, each at its own expense, maintain a policy or
policies of comprehensive general liability insurance with respect to the
particular activities of each in the Building with the premiums thereon fully
paid on or before due date.
Utilities.
Landlord shall pay all charges for water, sewer, gas, electricity, telephone and
other services and utilities used by Tenant on the Leased Premises during the
term of this Lease unless otherwise expressly agreed in writing by Landlord.
Tenant acknowledges that the Leased Premises are designed to provide standard
office use electrical facilities and standard office lighting. Tenant shall not
use any equipment or devices that utilizes excessive electrical energy or which
may, in Landlord's reasonable opinion, over load the wiring or interfere with
electrical services to other tenants.
Signs.
Following Landlord's consent, Tenant shall have the right to place on the Leased
Premises, at locations selected by Tenant, any signs which are permitted by
applicable zoning ordinances and private restrictions.
Entry.
Landlord shall have the right to enter upon the Leased Premises at reasonable
hours to inspect the same, provided Landlord shall not thereby unreasonably
interfere with Tenant's business on the Leased Premises.
Damage and Destruction.
If the Leased Premises or any part thereof or any appurtenance thereto is so
damaged by fire, casualty or structural defects, such damage or defects not
being the result of any act of negligence by Tenant or by any of Tenant's
agents, employees or invitees, that the same cannot be used for Tenant's
purposes, then Tenant shall have the right within ninety (90) days following
damage to elect by notice to Landlord to terminate this Lease as of the date of
such damage. In the event of minor damage to any part of the Leased Premises,
and if such damage does not render the Leased Premises unusable for Tenant's
purposes, Landlord shall promptly repair such damage at the cost of the
Landlord. In making the repairs called for in this paragraph, Landlord shall not
be liable for any delays resulting from strikes, governmental restrictions,
inability to obtain necessary materials or labor or other matters which are
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beyond the reasonable control of Landlord. Tenant shall be relieved from paying
rent and other charges during any portion of the Lease term that the Leased
Premises are inoperable or unfit for occupancy, or use, in whole or in part, for
Tenant's purposes. Rentals and other charges paid in advance for any such
periods shall be credited on the next ensuing payments, if any, but if no
further payments are to be made, any such advance payments shall be refunded to
Tenant. The provisions of this paragraph extend not only to the matters
aforesaid, but also to any occurrence which is beyond Tenant's reasonable
control and which renders the Leased Premises, or any appurtenance thereto,
inoperable or unfit for occupancy or use, in whole or in part, for Tenant's
purposes.
Condemnation.
If any legally, constituted authority condemns the Building or such part thereof
which shall make the Leased Premises unsuitable for leasing, this Lease shall
cease when the public authority takes possession, and Landlord and Tenant shall
account for rental as of that date. Such termination shall be without prejudice
to the rights of either party to recover compensation from the condemning
authority for any loss or damage caused by the condemnation. Neither party shall
have any rights in or to any award made to the other by the condemning
authority.
Security Deposit.
Landlord shall hold the Security Deposit without liability for interest and as
security for the performance by Tenant of Tenant's covenants and obligations
under this Lease, it being expressly understood that Tenant shall not consider
the Security Deposit an advance payment of rent or a measure of Landlord's
damages in case of default. Unless otherwise provided by law or regulation,
Landlord may commingle the Security Deposit with Landlord' s other funds.
Landlord may, from time to time, without prejudice to any other remedy, use the
Security Deposit to the extent necessary to make good any arrearages of rent or
to satisfy any other covenant or obligation of Tenant hereunder. Following any
such application of the Security Deposit, Tenant shall pay to Landlord on demand
the amount so applied in order to restore the Security Deposit to its original
amount. If Tenant is not in default at the termination of this Lease, Landlord
shall return the balance of the Security Deposit remaining after any such
application to Tenant.
Compliance with Law.
Tenant and Landlord each shall comply with all laws, orders, ordinances and
other public requirements now or hereafter affecting the Leased Premises.
Final Agreement.
This Agreement terminates and supersedes all prior understandings or agreements
on the subject matter hereof. This Agreement may be modified only by a further
writing that is duly executed by both parties.
IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year
first above written.
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Landlord, Xxxxxx Xxxx Tenant, Xxxxxxxxx Xxxx for Loreto Corporation
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