Document:

exv10w21

Exhibit 10.21

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

LEASE AGREEMENT

Banco J.P. Morgan, S.A., Institución de Banca Multiple, J.P. Morgan Grupo Financiero, Division
Fiduciaria, as trustee under the Business Administration Trust Agreement identified as “TRUST
F/00030”

(“Lessor”)

and

VICTOR EQUIPMENT DE MEXICO SA

DE CV

(“Lessee”)

The leasable area of 430,659,41 square feet (40,009.23 square meters) which includes land and
building of 166,582.16 square feet as described in exhibit “A-2” of the property owned by Lessor
which is located in Jesús Siqueiros No. 652, Col. Alvaro Obregón, Hermosillo, Sonora 83170

(“Leased Property”)

 

 

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THIS LEASE AGREEMENT DATED OCTOBER 13, 2008 IS MADE AND ENTERED INTO BY
AND BETWEEN BANCO
J.P. MORGAN, S.A., INSTITUCION DE BANCA MULTIPLE, J.P. MORGAN GRUPO FINANCIERO, DIVISION FIDUCIARIA
AS TRUSTEE IN THE BUSINESS ADMINISTRATION TRUST IDENTIFIED UNDER NUMBER F/00030 (HEREINAFTER
REFERRED TO AS LESSOR”) HEREIN REPRESENTED BY PABLO BARCOS MELGAR, AND VICTOR EQUIPMENT DE
MEXICO SA DE CV (HEREINAFTER REFERRED TO AS “LESSEE”), HEREIN REPRESENTED BY ADOLFO
FRANCISCO CENTENO MORALES, IN ACCORDANCE WITH THE FOLLOWING RECITALS AND CLAUSES:

RECITALS

	1.	 	Lessor, through its authorized representative, hereby states that:
	 
	1.a.	 	It is a company duly incorporated and validly existing pursuant to the laws of United Mexican
States (“Mexico”), with its principal place of business in Mexico, Distrito Federal as
evidenced by public deed number 46,449, granted on December 5th 1994, before Miguel
Alessio Robles, Notary Public number 19 of the Federal District, Mexico, which first testimony
of which is registered in the Public Registry of Commerce of the Federal District, Mexico
under commerce folio number 195238 on March 7, 1995. Copy of this deed is attached hereto as
Exhibit “A”.
	 
	1.b.	 	Its representative has the necessary powers and authority for the execution of this Agreement
on behalf of Lessor, as Trustee in the Trust identified under Code F/00030 as evidenced by the
public deed which is also attached hereto as Exhibit “A-1”, authority which has not
been limited or revoked in any

 

 

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	 	 	manner whatsoever to the date of execution of this Agreement.
	 
	1.c.	 	Is the legal owner of the Property as evidenced in public deed number 60,396 dated December
13th, 2004, granted before Mr. Francisco Javier Cabrera Fernández, Notary Public
No. 11 of Hermosilo, Sonora.
	 
	1.d	 	Intends to lease to the Lessee, subject to the terms of this Agreement, the Leased Property.
	 
	2.	 	Lessee, through its authorized representative, hereby states that:
	 
	2.a.	 	Is a company incorporated and existing pursuant to the laws of Mexico, whose corporate
domicile is in Jesús Siqueiros Número 652, Colonia Alvaro Obregón, Código Postal 83170,
Hermosillo Sonora, Mexico, as evidenced by the public deed number 261, dated February
10th 2000,
granted before Mr. Francisco Burciaga Molinar, Notary Public No. 30 of
Distrito Judicial Bravos, Chihuahua, which first testimony of which is registered under folio
number 18595, volume 466 book one, on the Property Public Registry Commerce Section,
Hermosillo, Sonora, Mexico. Formerly, its denomination was Tweco de México, S.A. de C.V. and
was modified to its current denomination Victor Equipment de México, S.A. de C.V. by means of
the public instrument no. 2,047 y 2,048 granted before Public Notary 3 Lic. Javier Ignacio
Camargo Nassar on Distrito Bravos Chihuahua registered on December 30, 2005, recorder before
Public Registry under folio 13249*7 and 13258*7. Copy of the public deeds mentioned in this
recital are attached hereto as Exhibit “B”.
	 
	2.b.	 	Its representative has the necessary powers and authority for executing this Agreement on
behalf of Lessee as evidenced by the public deed attached hereto as Exhibit “B-1”,
same authority that has not been limited or revoked in any manner whatsoever to the date of

 

 

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	 	 	execution of this Agreement.
	 
	3.	 	The Parties hereby mutually agree that capitalized terms as used herein, shall have the
meaning set forth in Exhibit “E” of this Agreement. In the event of any discrepancy
between the definitions contained in such Exhibit “E” and any other provision of this
Agreement, the latest shall prevail.
	 
	 	 	In consideration of the above recitals, the Parties hereto enter into this Lease Agreement,
wherefore they mutually agree as follows:

CLAUSES

CLAUSE 1.

LEASING OF THE LEASED PROPERTY.

Subject to the terms and conditions of this Agreement, Lessor hereby leases to Lessee and Lessee
under such capacity hereby accepts from Lessor, the use of the Leased Property. The Leased Property
has a construction of 166,582.12 square feet located on a 430,659.41 square feet area located on
the Lessor’s land area.

CLAUSE 2.

DELIVERY OF POSSESSION OF THE LEASED PROPERTY.

	2.1	 	Lessor herein delivers continued possession of the Leased Property to Lessee for the
Authorized Use. Lessee accepts the Leased Property to its entire satisfaction in its “as-is”
condition (except as provided herein), subject to the compliance of all the applicable
provisions and restrictions for its use and to all regulations applicable to the Property.
	 
	2.2	 	Lessee expressly acknowledges and hereby evidences, that:

 

 

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	(a)	 	It has inspected the Leased Property and except as provided herein accepted to lease [***] in
its “as-is” and “whereas” conditions.
	 
	(b)	 	Lessor has made no representation or warranty, covenant, or agreement whatsoever with respect
to the merchantability or fitness of the Leased Property for any particular purpose, but
lessor [***] [***] of no reason why Lessee cannot continue to conduct its manufacturing
operations on the Leased Property.
	 
	(c)	 	The conditions of the Leased Property are good and suitable to serve for the purposes or
motive for which Lessee is leasing the Leased Property.
	 
	2.3	 	The Lessee acknowledges that the Lessor may at any time during the term of this Agreement
install and construct (with no additional rent obligation or other payment to Lessor) a
construction surface known as Mezzanine (specified on exhibit “D”) located in the Leased
Property does not belong to the leased area. 

The Lessee accepts the condition of this surface
and gets the obligation of repair or modify at his own cost the Mezzanine according to the
project attached hereto as exhibit “D-1”. Taking off the Lessor any responsibility related
with the construction, maintenance or operation of the Mezzanine.
	 
	2.4	 	The parts agree that once the construction works referred at exhibit “D-1” for the Mezzanine
are finished the Lessor will lease the Mezzanine and

 

 

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	 	 	will take part of the Lease Property on the same terms and conditions stated on this Agreement.
	 
	2.5	 	Lessee hereby waives all rights that may be granted to it
under the Applicable Civil Code
which are correlative to those set forth in articles 2412 fraction V, 2421 and 2490 of the
Federal Civil Code on Mexico.
	 
	2.6	 	Except as expressly provided herein, the parties expressly agree that Lessee’s acceptance of
the possession of the Leased Property shall be conclusive evidence that Lessee has inspected,
received and accepted the possession of the Leased Property in its as-is condition, without
reserve and limitation whatsoever, and that the Leased Property is in good conditions on the
date that Lessee signs this Agreement.

CLAUSE 3.

TERM OF THE LEASE AGREEMENT.

	3.1	 	Term of the Lease Agreement. This Lease Agreement shall be effective as of July
1, 2009 (the “Commencement Date”) and, except as set forth herein, for a term of
15 (Fifteen) mandatory years for both parties (the “Lease Term”), counted from the
Commencement Date. The Lease Termination written notice must be done 6 months prior the
first 10 year period finishes
	 
	3.1.1	 	Lessee’s Option to Terminate After Ten Years.
	 
	 	 	Lessee may, at its option and for any reason, terminate this
Agreement once a ten (10) year period has finished by providing
written notice to Lessor 6 (six) months prior of its intent to
terminate provided that Lessee is in full compliance of its material
obligations under this Agreement.
	 
	3.2	 	Renewal Option.

 

 

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	(a)	 	Subject to the terms and conditions contained in this clause, Lessee shall be entitled to opt
together into 1 (one) new and consecutive lease agreements, regarding the Lease Property, of (five
years, under the same terms and conditions contained in this Lease Agreement, including
escalation of the Lease Price as defined in Section 5.4 below (the “New Lease Option”).
	 
	(b)	 	Lessee’s right to exercise the New Lease Option and Lessor’s obligation to enter into the
relevant New Lease shall be expressly conditioned upon the fulfillment of each one of the
following conditions, that:
	 
	(i)	 	Lessee delivers to Lessor the corresponding New Lease Notice, at least six (6) months prior
to the expiration of the Lease Term.
	 
	(ii)	 	Lessee is in compliance of all of its obligations hereunder; including without limitation,
the payment of the Lease Price and any other considerations and/or reimbursements as set forth
in this Lease Agreement, and
	 
	(c)	 	If a New Lease Notice is not given by Lessee within the above agreed term, then it shall be
conclusively understood that Lessee has elected not to exercise the New Lease Option; and all
Lessee’s rights with respect to the First New Lease and/or the Second New Lease, as
appropriate, shall be automatically deemed as waived by Lessee, for which effect no formality
shall be required to be complied by any of the parties hereto.

CLAUSE 4.

USE OF THE LEASED PROPERTY.

	4.1	 	Use of the Leased Property. Lessee shall use the Leased Property only and

 

 

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	 	 	exclusively for the Authorized Use and for no other purposes without Lessor’s prior written consent
and provided that in no event the Leased Property may be used for conducting any activities
incompatible with industrial activities, product assembly and manufacturing activities, which is
the authorized Property’s land use.
	 
	4.2	 	Applicable Regulations. Lessee, at its sole experise and responsibility, shall use
and occupy the Leased Property and perform its corporate activities on the Leased Property
pursuant to the Authorized Use and in compliance with the Applicable Regulations.
	 
	(a)	 	Lessee shall be responsible at its sole cost and expense to obtain and maintain in full force
and effect during all the time it occupies the Leased Property all of the governmental
authorizations, licenses and permits that pursuant to the Applicable Regulations (including
the Environmental Requirements) be necessary to set up and operate its business on the Leased
Property pursuant to the Authorized Use. Upon written request by Lessor, Lessee shall provide
Lessor with true, correct and complete copy of all such authorizations, licenses and permits
that are related with the Leased Property, including all permits related with health, safety
and environmental matters within the thirty (30) days following their issuance to the extent
that they are related with the Leased Property or have the possibility of affecting the Leased
Property, including all permits related with health, safety and environmental matters.
	 
	(b)	 	Lessee shall use the Leased Property in a careful, safe and proper manner, and it may not
store hazardous wastes in violation of Environmental Requirements, overload the floors or
structure of the Leased Property or subject the Leased Property to any use

 

 

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	 	 	that would damage it. Lessee shall not cause or permit to be caused on the Leased Property [***],
smoke, [***], gas, noise, of vibrations which are not allowed under this Applicable [***], neither
perform acts that may cause damages to the health, environmental natural resources of an ecological
unbalance. Lessee may not perform on the Leased Property under any circumstances operations related
to the management of hazardous materials of wastes or set up activities contravening the Applicable
Regulations to the Authorized Use.
	 
	(c)	 	Likewise, Lessee shall not use or permit that the Leased Property is used in such a manner
that it might void the insurance or increase the risk coverage of such insurances which will
be set forth in Clause 13 of this Lease Agreement

CLAUSE 5.

LEASE PRICE.

	5.1	 	Lessee shall pay the Lease Price to Lessor from the Commencement Date, during the Lease Term
and until it vacates and delivers the possession of the Leased Property to Lessor under the
agreed terms hereunder.
	 
	5.2	 	Lease Price. The Lease Price for the first to the end of the fifth Lease Year shall
be equivalent to $832,910.80 U.S. Cy. (Eight hundred and thirty two thousand nine hundred and
ten Dollars 80/100 legal tender of the United States of America) plus the corresponding value
added tax (“VAT”). The Lease Price per square foot per year of edifications built on
the Leased Property per month is an amount equivalent to approximately $5.00 U.S. Cy. (five
Dollars 00/100 legal tender of the United States of America) plus VAT, for the first Lease
Year, considering that the Leased Property currently has approximately 166,582 square feet of
leased area

 

 

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	 	 	From the sixth to the end of the tenth Lease Year, the Lease Price shall be equivalent to
$916,201.88 U.S. Cy. (Nine hundred and sixteen thousand two hundred and one Dollars 88/100
legal tender of the United States of America) plus VAT. The Lease Price per square foot per
year of edifications built on the Leased Property per month is an amount equivalent to
approximately $550 U.S. Cy. (five Dollars 50/100 legal tender of the United States of
America) plus VAT, for the sixth to the tenth Lease Year, considering that the area for the
Leased Property will be from then on, 166,582 square feet of leased area.
	 
	 	 	From the eleventh to the fifteenth Lease Year, the Lease Price shall be equivalent to
$999,492.96 U.S. Cy. (Nine hundred and ninety nine thousand four hundred and ninety two
Dollars 96/100 legal tender of the United States of America) plus VAT. The Lease Price per
square foot per year of edifications built on the Leased Property per month is an amount
equivalent to approximately $6.00 U.S. Cy. (six Dollars 00/100 legal tender of the United
States of America) plus VAT, from the eleventh to the fifteenth Lease Year, considering that
the area for the Leased Property will be from then on, 166,582 square feet of leased area
from the second Lease Year during and until the end of the Lease Term.
	 
	5.3	 	Monthly Payments. The Lease Price shall be paid in twelve (12) equal and successive
installments, being each of said payments from the first to the fifth Lease Year the amount of
$69,409.23 U.S. Cy. (Sixty nine thousand four hundred and nine Dollars 23/100 legal tender of
the United States of America) plus VAT.
	 
	 	 	from the sixth to the tenth Lease Year the amount of $76,350.15 U.S. Cy. (Seventy six
thousand three hundred

 

 

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	 	 	and fifty Dollars 15/100 legal tender of the United States of America) plus VAT.
	 
	 	 	from the sixth to the tenth Lease Year the amount of $83,291.08 U.S. Cy.
(Eighty three thousand two hundred ninety one Dollars 08/100 legal tender of the United
States of America) plus VAT.
	 
	5.4	 	Escalations. As of the beginning of the New Lease and on the 1st day of January of
each subsequent year, and until Lessee vacates and returns possession on the Leased Property
to Lessor, the Lease Price shall be increased based on the index and procedure set forth
below:
	 
	(a)	 	Definitions. The following terms shall have the following meanings:
	 
	(i)	 	“Base CPI” means the CPI corresponding to the twelve (12) immediate months previous
to the commencement date of the first Lease Year of the New Lease Term or of the then-running
Lease Year, of the New Lease Term as appropriate, to determine the Lease Price adjustment
corresponding to the commencement of the next Lease Year and so forth year after year.
	 
	(ii)	 	“CPI” means the Consumer Price Index for All Urban Consumers, All Items, All Cities,
issued by the U.S. Department of Labor, Bureau of Labor Statistics (1982-1984=100). If the CPI
is converted to a different standard base reference or otherwise it be revised, then the
escalation formula of the Lease Price shall take into account the conversion factor published
by the U.S. Department of Labor, Bureau of Labor Statistics; Prentice-Hall, Inc; and in lack
of it, another publication or statistical information replacing the foregoing as recognized in
the United States of America. If the CPI ceases to

 

 

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	 	 	be published, Lessor and Lessee shall agree on another equivalent of similar index to be
used in the formula.
	 
	(iii)	 	“Current CPI” means the last CPI published to the date on which the adjustment of
the Lease Price shall be made. For purposes of this Lease Agreement, such publication shall be
that of the [***] mediate month before the end of the initial Lease Term.
	 
	(iv)	 	“Lease Year” shall mean each consecutive twelve (12) month period as of July 1, 2009.
The foregoing, except that if the Commencement Date of the Lease is other than the first day
of a calendar month, then the Lease Year shall be the period from the Commencement Date
through the date twelve (12) months later, and each subsequent year of the Lease Term shall be
the period of twelve (12) months following the last date of the prior Lease Year.
	 
	(v)	 	“Percentage Factor” means the percentage obtained by dividing: (y) the positive
differences between the Current CPI and the Base CPI, by (z) the Base CPI, provided the
Percentage Factor might not be ever negative.
	 
	(vi)	 	“Formula” considering the above factors, the Lease Price for each year as of the
commencement of the second Lease Year shall be the sum up of the following concepts:
	 
	(1)	 	Lease Price in force in the ending Lease Year, plus
	 
	(2)	 	The product of (x) Lease Price for the ending Lease Year multiplied by (y) the
Percentage Factor.

= Lease Price for the commencing Lease Year, plus VAT.

 

 

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	 	 	In case the CPI is larger than 2% (two per cent) this percentage will be taken as the capped
escalation factor.
	 
	5.5	 	Lease Price Payment Conditions. Lessee shall pay the Lease Price as follows:
	 
	(a)	 	Per monthly payment in advance within the first five (5) days of each month.
	 
	(b)	 	In Dollars, legal tender of the United States of America through wire transfer to Lessor’s
bank account as follows:

Bank JP MORGAN CHASE BANK, New York, NY

Account: 707405551

ABA: 021000021

Beneficiary: Banco JP Morgan, S.A.

Institución de Banca Multiple JP Morgan Grupo Financiero División Fiduciaria

Fid. 0030

Branch: 0573

	(c)	 	Late Payment. If Lessee fails to pay on time any amount due to Lessor hereunder, the
unpaid amount shall bear default interest at the Interest Rate, from the day following the
date on which said amount should have been paid and until Lessor receives fully paid of the
principal amount and interest accrued.

CLAUSE 6.

REIMBURSABLE EXPENSES.

	6.1	 	Lessee shall reimburse the cost incurred by Lessor for the following concepts, with respect
to the Leased Property:
	 
	(a)	 	The Property Tax of the Leased Property;
	 
	(b)	 	The cost of the insurance policies of the Leased Property referred to in Clause 13.2
below, and the deducible cost corresponding to the claim of any peril; and]
	 
	(c)	 	The cost of the maintenance and repair

 

 

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of the Leased Property under the terms set forth in Clause 20.6(b) hereof; and]

	(d)	 	Reimbursable Expenses will only apply in the event Lessee does not comply with its
obligations or incurs in default regarding its insurance or any other obligations under the
terms and conditions of this Agreement.
	 
	(e)	 	It should not be considered as Reimbursable Expenses any expense incurred in by Lessor for
Insurance paid by Lessor when Lessee had already complied with this obligation under the terms
of this Agreement and specially under clause 13.
	 
	6.2	 	The costs of the above concepts and any other concept other than the Lease Price that under
this Lease Agreement Lessee shall reimburse to Lessor are hereinafter identified as
“Reimbursable Expenses”.
	 
	6.3	 	All Reimbursable Expenses shall be documented and billed to Lessee in a monthly and/or
quarterly basis, depending on the frequency of the different concepts of the Reimbursable
Expenses, and shall be paid by Lessee to Lessor within fifteen (15) days as of delivery of
request or on the date of the next payment of the Lease Price, which will enclose the
corresponding support documentation.
	 
	6.4	 	For purposes of calculating the Reimbursable Expenses, a year or annuality shall be deemed as
a calendar year. The foregoing, except for: (i) the first year of the Lease Term, which shall
begin on July 1, 2009, and (ii) the last year of the Lease Term, which shall end upon
expiration of the Lease Term or, in its case, the date in which the Agreement is terminated.
If Lessee fails to comply with vacating and returning possession of the Leased Property to
Lessor upon the expiration of the Lease Term, Lessee shall continue obligated to pay the
Reimbursable Expenses generated during such period and until Lessee

 

 

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	 	 	vacates and returns the possession of the Leased Property to Lessor.
	 
	6.5	 	The payment of the Reimbursable Expenses to Lessor shall be made considering the same terms
and conditions set forth in Clause 5.5 above, applicable to the monthly payments on the Lease
Price.

CLAUSE 7

PAYMENT CONDITIONS.

	7.1	 	Other Taxes. Except for the Property Tax forming part of the Reimbursable Expenses,
each party shall be individually responsible for those taxes attributable to them in their
capacity of Lessor or Lessee, as appropriate, in terms of the applicable tax provisions.
	 
	7.2	 	Property Tax Contesting. Lessee, with the consent of Lessor, or Lessor may directly
file proceedings in conformity with the Applicable Regulations, in the name of Lessor for
contesting the validity of any taxes or contributions associated with the Property Tax that
they are not in agreement with, and recover the resulting payment made in excess for that
concept as resolved. In any case, each party shall cooperate with the other in pursuing a
favorable resolution to said contest in the extent as reasonably necessary. The net recovered
amount of the Property Tax after payment of all the expenses related thereto shall be retained
by Lessor to be applied to the payment of successive Reimbursable Expenses on the account of
Lessee, provided Lessee is current in the payments of such concept.
	 
	7.3	 	Invoices. Upon receipt of the monthly Lease Price payments and/or the Reimbursable
Expenses, Lessor shall deliver to Lessee the relevant invoices, which shall meet the
applicable tax

 

 

	 	 	requirements under the law, including breakdown of the corresponding VAT. In no event, Lessor
shall be obliged to deliver invoices before the payment date. The corresponding invoice shall also
include the exchange rate as defined in the following paragraph.
	 
	7.4	 	Exchange Rate. The applicant rate for the conversion of Dollars into Pesos Mex Cy.
shall be that in force on the payment date, as determined by Banco de Mexico to discharge
obligations nominated in foreign currency payable in the Maxican Republic, as published in the
Federal Official Gazette.
	 
	7.5	 	No Retention. In no case, Lessee may retain the payment of the Lease Price or any other
payments on its account under this Agreement. Lessee shall pay the Lease Price and any other such
payments payable by it in the corresponding amount and under the terms set forth hereunder.
	 
	 	 	CLAUSE 8.
	 
	 	 	UTILITIES.
	 
	8.1	 	Utilities. From the Commencement Date of this Lease Agreement, the Lessee shall pay for
all Utilities used in the Leased Property.
	 
	8.2	 	Utility Contracts. Lessee shall be responsible for directly contracting at its sole
cost with the authorized public or private providers, as appropriate and in conformity with the
Applicable Regulations, the capacity, consumption and physical connection of the Utilities as
required for the proper operation and functioning of Lessee’s activities on the Leased Property, as
well as for the proper conservation, maintenance, hygiene, and safety of the Leased Property.
	 
	(a)	 	Without limiting the generality of the foregoing, Lessee shall be responsible

 

 

	 	 	for contracting, at its sole cost directly (i) with the Comisión  Federal de Electricidad (“CFE”)
or any other authorized supplier, the capacity, consumption and physical connection of electricity,
including without limitation the installation of power lines and installation of electrical cables
(ii) with Teléfones de Maxico, S.A. (“Telmex”)
or any other telephone  carrier, the capacity, consumption and physical connection of
telephone service, and (iii) with the municipal authority or authorized provider, the capacity,
consumption and physical connection of water and sewerage services, all of the foregoing as require
for the adequate operations of the Leased Property. Likewise, Lessee shall be responsible for using
all the Leased Property’s Utilities services.
	 
	 	 	CLAUSE 9.
	 
	 	 	LESSEE IMPROVEMENTS.
	 
	9.1	 	Lessee-Made Alterations. All Lessee-Made Alterations shall be subject to Lessor’s prior
written consent, which shall not be unreasonably withheld or delayed. For this purposes, the
project inserted herein as Exhibit “E” could be used.
	 
	 	 	The parties agree that Lessee may install, at it own expense, the Mezanine as set forth in Exhibit
“D-1”.
	 
	9.2	 	Lessee shall cause at its sole expense and responsibility that all Lessee-Made Alterations
comply with all the requirements of the insurances of the Leased Property and the Applicable
Regulations, which include the prior obtainment of land use, construction, occupancy,
environmental, and any other authorization as required.
	 
	9.3	 	All Lessee-Made Alterations shall be constructed in a good and competent manner by contractors
previously approved by Lessor, which shall not be unreasonably withheld or delayed, and using only
good quality materials. Furthermore, all contractors shall have,

 

 

	 	 	during the entire term in which they are carrying out any Lessee-Made Alterations in the Leased
Property, a Public Liability Insurance covering claims for bodily injury and
property damage occurring on, around or from the Leased Property in an amount not less than the
equivalent to US$1,000,000,00 Dollars 00/100), per occurrance.
	 
	9.4	 	The authorization for Lessee to carry out any Lessee-Made Alterations on the Leased Property
shall be subject to the previous review and approval of the relevant layouts and specifications by
Lessor, who shall be further authorized to inspect the appropriate execution of the works of
Lessee-Made Alterations. Such review and inspection shall be on the account of Lessee, who shall
reimburse the costs incurred by Lessor for such concepts, as part of the Reimbursable Expenses. The
review and inspection authority referred to in this paragraph are solely in benefit of Lessor,
therefore Lessee acknowledges and agrees that Lessor’s exercising of such right under no case or
circumstance should release Lessee from complying its obligations in conformity with this Agreement
and the Applicable Regulations.
	 
	9.5	 	Lessee hereby expressly acknowledges that it shall be responsible before Lessor that the
Lessee-Made Alterations (i) are executed in conformity with the approved layouts and specifications
by Lessor and the competent authorities, (ii) of the full and timely payment of all the
contractors, subcontractors, suppliers, and workers hired to perform the relevant Lessee-Made
Alterations, (iii) that Lessee and/or its contractors and subcontractors discharge all their
obligations, including the payment of any indebtedness to governmental agencies, whether federal,
local, municipal, or organisms related to or decentralized from the above, including the Instituto
Mexicano del Seguro

 

 

	 	 	Social (IMSS), the Instituto de Fondo Nacional para la Vivienda de los Trabajadores (INFONAVIT)
or the Sistema de Ahorro para el Retiro (SAR) due to Lessee-Made Alterations, and (iv) that Lessee obtains
all of the required permits and authorizations from the competent authorities pusuant to the
Applicable Regulations for performing and occupying the relevant Lessee-Made Alterations.
Therefore, Leesee hereby releases Lessor from all liability in connection with the above lessee’s
obligations.
	 
	9.6	 	Lessee shall deliver to Lessor, within the fifteen (15) days following completion of any
Lessee-Made Alterations works, copy of the payment liquidation referred to in items (ii) and (iii)
of the above Clause 9.5, and certification from the director responsible of the
relevant Lessee-Made Alterations evidencing that the requirements referred to in items (i) and (iv)
of the above mentioned paragraph were fulfilled. In all cases, Lessee shall be obliged to keep
Lessor free and harmless from any claim, administrative procedure, demand and/or lawsuit of any
type, including of labor, tax or environmental nature, and it shall indemnify Lessor for any
damages or losses that Lessor bears from the failure by Lessee and/or its contractors,
subcontractors, architect and/or director responsible of the work, or any suppliers, to comply with
their obligations set forth in this clause.
	 
	9.7	 	Before expiration of the Lease Term or upon termination for any reason of this Lease Agreement,
all of Lessee-Made Alterations and rights over the improvements carried out by Lessor or Lessee
shall remain in benefit of the Leased Property, except for those required by Lessor to be removed
to Lessee in writing, removal which shall be on the account of Lessee or as Lessor and Lessee have
agreed upon in writing. The parties agree that Lessee

 

 

	 	 	shall not be obligated to remove the Mezanine. Prior termination for any reason of this lease
Agreement, Lessee shall repair at its expense every and all damages caused by such removal and
restore the Leased Property to its condition existing on the Commencement Date, wear and tear
excepted.
	 
	9.8	 	Signage and Safety Installation. All signage, decoration, publicity, as well as blinds,
curtains and other chattels and security installation visible from outside the Leased Property that
Lessee intends to install on the Leased Property shall be subject to the prior written approval of
Lessor (such approval which may not be unreasonably withheld) and shall comply in all aspects with
the Applicable Regulations.
	 
	9.9	 	Trade Fixtures. Lessee, at its expense and responsibility, and without requiring
Lessor’s prior approval, may install all Trade Fixtures as required for its ordinary course of
business on the Leased Property pursuant to the Authorized Use, provided the structural
characteristics of the Leased Property are not altered, nor overload or damage the floors, and such
Trade Fixtures may be removed without damaging the Leased Property. The foregoing in the
understanding that the work, installation and removal of the Trade Fixtures and signage of Lessee
shall always comply with the Applicable Regulations and the terms and conditions of this Lease
Agreement. Upon termination for any reason of this Agreement, Lessee at its expense shall remove
the Trade Fixtures and signage and shall repair any damages caused by such removal. Lessee shall
complete said repair before the termination for any reason of this Lease Agreement. Lessor reserves
the right to verify the removal works referred to in this paragraph.

 

 

	9.10	 	Waiver. Lessee expressly waives any right conferred to it by the Applicable
Regulations, if any, which requires Lessor to pay any Lessee-Made Alterations and/or Trade Fixtures
left by Lessee in the Leased Property after termination of this Agreement for any reason, except
for useful improvements as provided in Articles 2423 Section II and 2424 of the Federal Civil Code
of their correlatives in the Civil Code for the State of Sonora, Mexico and provided that this Lease
Agreement is terminated for causes attributable to Lessor, or unless otherwise Lessor and Lessee
had agreed in the Delivery and Receipt Minutes referred to in Clause 18.2 below.
	 
	9.11	 	No Offset. Lessee may not offset the cost of any improvements and/or maintenance
and/or repairs from the payments of the Lease Price and/or the Reimbursable Expenses and/or any
other amount applicable to Lessee hereunder.
	 
	 	 	CLAUSE 10.
	 
	 	 	ASSIGNMENT AND SUBLETTING.
	 
	10.1	 	Assignment, Subletting or Transfer by Lessee.
	 
	(a)	 	Without Lessor’s prior written consent, Lessee may not assign this Lease Agreement or sublease
the Leased Property or any part thereof, nor grant any concession or permit to use the Leased
Property in whole or part, nor transfer Lessee’s business established on the Leased Property, and
in general, it may not transfer its rights derived from this Lease Agreement in any other manner
whatsoever. For purposes of this Lease Agreement, the above acts shall be understood as an
“Assignment” or a “Sublease”, as it may correspond. In all
cases, any Assignment or Sublease carried out contravening the foregoing shall be void and have no

 

 

	 	 	effects whatsoever.
	 
	(b)	 	Notwithstanding the foregoing, Lessee may assign or sublease the Leased Property or any part
thereof to any Related Party to Lessee, provided that the assignee of sublessee, as applicable,
evidences in writing that it has assumed all the rights and
obligations corresponding to Lessee
under the terms of this Lease Agreement (as amended to the effective
date of the Assignment), as well
as the compliance of the Applicable Regulations and Guarantor evidences in writing that it remains
obligated before Lessor in terms of the Guaranty. A Related Party includes the purchaser of all or
substantially all of the business to which the operations at the Leased Property relate.
	 
	(c)	 	In all cases, Lessee shall deliver a written notice to Lessor at least ten (10) days in advance
to the effective date of the agreed Assignment or Sublease with a Related Party to Lessee, in the
understanding that along with such notice, Lessee shall enclose the document evidencing that the
Related Party to Lessee, from the date of the proposed Assignment or Sublease formally assumed with
no condition all of the rights and obligations derived from the Lease Agreement pertaining to
Lessee, and that Guarantor shall continue being responsible before Lessor for the compliance of the
obligations of the relevant sublessee or assignee, as the case may be. Lessee shall reimburse all
expenses incurred by Lessor, if any, derived from the Assignment or Sublease.
	 
	(d)	 	In any case, any Assignment or Sublease proposed by Lessee to Lessor shall be additionally
subject to the credit rating of the proposed assignee

 

 

	 	 	or sublessee being, at least BBB pursuant to Standard and Poor’s Ratings Services, a division of
the McGraw Hill Company and at least of Baa2 pursuant to Moody’s Investor Services, Inc., for the
senior unsecured debts of such proposed assignee or sublessee, or, Lessee must prove that the same
garanty granted by Lessee in favor of Lessor is provided in order for Lessor to authorize such Assignment or Sublease, authorization which
should not be unreasonably denied under the terms of this Agreement.
	 
	(e)	 	In the event that the Leased Property is subleased in whole or in part to any Related Party to
Lessee or any third party authorized by Lessor, upon occurrence of an event of default by such
sublessee, Lessor shall be entitled, without requiring to comply with any formality, to directly
collect the rent from sublessee and to credit the so received amounts against the payment of the
Lease Price and other amounts payable in favor of Lessor in conformity with this Lease Agreement.
Lessee shall include a clause that expressly contains the above Lessor’s collecting rights in any
sublease agreement that Lessee might enter into in conformity with this clause. The exercising of
this right by Lessor in any manner whatsoever shall not release Lessee and/or its Guarantor from
the compliance of their obligations under this Agreement. Therefore, Lessee and/or its Guarantor
shall remain responsible of the full compliance of their obligations under this Lease Agreement and
the corresponding guaranty. Except for the agreed above, there shall not be any contractual
relationship between a sublessee and Lessor, and any authorized Assignment shall be expressly
subject to the terms and conditions of this Lease Agreement. Lessor’s consent regarding any
Assignment shall not constitute a waiver by Lessor to exercise its rights regarding future
Assignments.

 

 

	10.2	 	Assignment by Lessor. Lessor may assign in
whole or in part its rights and obligations derived from this Lease Agreement,
including its collecting rights as well as to transfer title to and/or mortgage or in any other
manner to encumbrance or constitute guaranties over the Leased Property and/or the rights derived
from this Lease Agreement to any third party without requiring prior Lessee’s authorization, in which case, Lessor shall notify Lessee
of any assignment made by it, within the thirty (30) days following thereof. The foregoing in the
understanding that this Lease Agreement shall continue in force as
provided for in Clause
16.1.
	 
	 	 	CLAUSE 11.
	 
	 	 	MAINTENANCE.
	 
	11.1	 	Maintenance. During the Lease Term and/or until Lessee vacates and returns possession
on the Leased Property to Lessor, the maintenance, repair and restoration of the Leased Property
shall be governed, as follows:
	 
	(a)	 	Lessee shall carry out the maintenance of the Leased Property, in terms of the standards that
were complied with by other similar businesses within Mexico. Such maintenance shall include the
maintenance, replacement and repair of the parts of the Leased
Property, including without limitation, (i) paving, maintenance, repair and cleaning of access roads and parking lot
and loading areas on the Leased Property, (ii) maintenance and cleaning of roof and roof membranes,
façades, exterior walls and exterior corridors of the Leased Property, (iii) landscaping on the
Leased Property, (iv) exterior and interior paint of the Leased Property, (v) maintenance and
repair of water pumps, water collection cistern, air

 

 

	 	 	conditioning system, building’s roll-up doors, restroom fixtures, plumbing and fire protection
system (including pumps, valves, hoses and sprinklers), and
(vi) maintenance of utilities (***) exterior and interior lighting and mechanical, electric and hydraulic systems which are used within
the Leased Property.
	 
	(b)	 	For purposes of this Clause, the term “walls” shall include, among others, windows, glasses,
exterior and interior doors, overhead doors, special storage façades and levelers and the entrance
to the offices within the Leased Property.
	 
	(c)	 	Lessor shall be responsible, at its own cost and expense, for the maintenance, repair and
replacement, if required, of the Structural Elements of the Leased
Property; provided, however, that reasonable wear and tear and uninsured losses and damages caused by Lessee
or any Lessee Party shall be excluded (including any act or omission by Lessee or any Lessee Party
that results in the full or partial voiding of Lessor’s roof warranty).
	 
	 	 	Parties acknowledge that Lessor will provide an amount destinated to the repair of the air
conditioning system as specified in Exhibit “D-2”. This should not be considered under any
circumstance as an obligation of Lessor of maintenance or repair of the air conditioning system.
Such obligation is Lessee’s responsibility.
	 
	(d)	 	Lessee shall timely deliver to Lessor a written notice regarding the repairs or replacement, if
the case of the Structural Elements that Lessor shall carry out in terms of this Clause. Lessor
shall have a reasonable term to carry out the relevant repairs, unless Lessee’s or Lessee Parties’
operations

 

 

	 	 	or integrity of their employees are endangered, in which case Lessor shall begin the relevant
repairs or replacement of the case immediately, except as expressly provided in Clause 26 hereof,
in the understanding, however, that such immediate action by Lessor shall be to the
extent and only for those repairs or replacement if the case actually
endangering Lessee’s or Lessee
Parties’ operations or integrity of their employees, and the
remaining repairs of the Structural
Elements that may be necessary shall be carried out in a reasonable term.
	 
	(e)	 	Lessee shall keep the Leased Property in good operation, wear and tear excepted and except for
maintenance, repair and replacement if the case obligations of the Structural Elements which are
responsibility of Lessor.
	 
	(f)	 	Except for Lessor’s obligation to give maintenance, repair and replacement if the case to the
Structural Elements in terms of this Clause, the maintenance of the Leased Property at Lessee’s
cost and expense shall include the repair and replacement of all parts of the Leased Property which
have been faded or damaged for wear and tear deriving from the regular use of the Leased Property
by Lessee or any Lessee Party or from causes attributable to Lessee or any Lessee Party.
	 
	(g)	 	Pursuant to the foregoing and except for maintenance, repair and replacement if the case by
Lessor of the Structural Elements and except for damages to the Leased Property attributable to
Lessor, Lessee expressly waives the rights granted to it under the Applicable Civil Code in its

 

 

	 	 	correlative articles to those provided in articles 1932, 2444
and 2446 of the Federal Civil Code.
	 
	11.2	 	In no cases Lessee shall offset the cost of any improvement and/or maintenance and/or repair
with the payment of the Lease Price and/or the Reimbursable Expenses
and/or any other amount applicable to Lessee hereunder.
	 
	 	 	CLAUSE 12.
	 
	 	 	ENVIRONMENTAL REQUIREMENTS
	 
	 	 	Except for Hazardous Materials used by Lessee in the ordinary course of business in accordance with
all Environmental Requirements, Lessee may not permit or cause any party to bring any Hazardous
Material into the Leased Property nor transport, store, use, generate, manufacture, dispose or
release any Hazardous Material on, around, or from the Leased Property. Lessee, at its sole cost
and expense, shall operate its business in the Leased Property in strict compliance with all
applicable Environmental Requirements and the Authorized Use. Lessee shall complete and certify
disclosure statements as requested by Lessor from time to time relating to Lessee’s transportation,
storage, use, generation, manufacture or release of Hazardous Materials on the Leased Property, and
Lessee shall promptly deliver to Lessor a copy of any notice of violation relating to the Leased
Property or any Environmental Requirement. Lessee shall provide to Lessor, upon prior written
request, a list of all the Hazardous Materials (and relevant amounts thereof) that were used within
the Leased Property during the preceding period.
	 
	12.1	 	For purposes of the Environmental Requirements, Lessee is and shall be

 

 

	 	 	deemed the responsible party, including without limitation, the “owner” and “operator” of
Lessee’s “facilities” and the “owner” of all
Hazardous Material brought into the Leased Property by
Lessee or any Lessee Party, and the wastes, by-products and residues generated, resulting or
produced therefrom.
	 
	12.2	 	Disposal of Hazardous Materials. Lessee, at its sole
cost and expense, shall remove and
remediate, if it is the case, all Hazardous Materials stored, disposed of or otherwise released by
Lessee or any Lessee Party onto or from the Leased Property (except with respect to Hazardous
Materials that Lessee is able to demonstrate were not attributable to Lessee or to any Lessee
Party; provided, however, that if and to the extent a governmental or judicial authority requires
Lessee (or any Lessee Party) to remove any such Hazardous Materials, Lessee shall be obligated to
do so in terms of the requirement in question, In accordance to all Environmental Requirements and
the remediation levels established for that particular case, notwithstanding any recourses or
actions Lessee can undertake against the party responsible for the contamination in terms of the
applicable laws. Lessee shall perform such work at any time during the Lease Term, and in any
event, before Lessee shall return possession on the Leased Property to Lessor. If Lessee fails to
perform such work within the above specified term, Lessor without waiving any other remedy
available under this Lease Agreement or the Applicable Regulations (including without limitation an
action to compel Lessee to perform such work), perform such work at Lessee’s cost. Lessee shall pay
all costs incurred by Lessor in performing such work within the ten (10) days following Lessor’s
request thereof, together with interest thereon at the Interest Rate computed from the date of the
incurred cost until its payment in full.

 

 

	12.3	 	Environmental Conditions of the Leased Property.
	 
	(a)	 	At least 90 (ninety calendar days prior to the termination or expiration of this Lease
Agreement, Lessee shall conduct and deliver to Lessor a Phase I Environmental Site Assessment
performed by a reputable environmental consulting firm satisfactory to Lessor (the “Approved
Environmental Consultant”). Lessor will pay 50% (fifty percent) of this assessment, the obligation
to conduct it is sole responsibility of Lessee. If so required by such Phase I, a Phase II
Environmental Site Assessment should be performed by the Approved Environmental Consultant, as well
as any studies and/or notices related to the closing down of facilities or termination of
operations that may be required in terms of the Environmental Requirements ) (collectively the
“Site’s Final Environmental Studies”) which shall verify that the Leased
Property is materially in the same environmental condition as it was as of the Commencement Date of
the Lease Agreement received from Lessor. In the event that a Contamination Condition resulting
from Lessee’s (or any Lessee Party’s) use of the Leased Property is found at, on, in, under or over
the Leased Property, Lessee, at its own cost and expense, shall have the obligation to clean-up,
remedy, restore and in any other way perform the necessary remedial actions at the Leased Property
in order to return it materially to the same environmental condition as it was as of the
Commencement Date of the Lease Agreement. For the avoidance of doubt, and without affecting in any
way the provisions set forth under Clause 12.3(B) hereof, the parties hereby
agree that Lessee will be under

 

 

	 	 	no obligation with respect to Lessor to conduct the remedial actions set forth in the immediately
preceding sentence, if and to the extent it is reasonably demonstrate
(i) by means of a final non-appealable resolution or (ii) by means of a determination of an independent arbitrator, mutually appointed by
the Parties, regulated by the rules of the Centro de Arbitrate de México (CAM) arbitrator should be
appointed in compliance of such rules that all or part of the Contammation Condition in question
resulted from an event or condition existing prior to the date hereof or form an off-site adjacent
or hereby source not attributable to Lessee or to any Lessee Party, and without fault of Lessee or
any Lessee Party.
	 
	(b)	 	In any event and prior to Lessee’s delivery of the Leased Property to Lessor, Lessee shall
deliver to Lessor a certificate or communication issued by the Federal Office of the Prosecutor for
Environmental Protection and/or the Federal Ministry of the Environment and Natural Resources or
from any other authority that at the time is competent to do so, in which such authority certifies
that the Leased Property is free of Hazardous Materials and Contamination Conditions or that the
remediation goals have been reached if a remediation procedure was carried out before such
authority. In the event such certificate is not delivered to Lessor, Lessor will be under no
obligation to release and order that the Deposit granted by Lessee hereunder be released and
delivered back to Lessee
	 
	12.4	 	Inspections. Lessor shall have access to, and a right to perform inspections and tests of the
Leased Property to determine Lessee’s compliance with the Environmental Requirements, its
obligations under this Clause 12 or the environmental condition of the Leased
Property. Access shall be granted to Lessor at any time upon Lessor’s prior

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	notice to Lessee, in the understanding that in such inspections and tests, Lessor shall
attempts to the extent possible, to minimize interference with Lessee’s operation. Such inspections
and tests shall be conducted at Lessors expense, unless Lessee is in default hereunder or such
inspections or tests reveal that Lessee has not complied with any Environmental Requirement, in which
case Lessee shall reimburse Lessor for the cost of such inspection and tests. Lessor’s receipt of or
concurrence with any environmental assessment by Lessee in no way implies any waiver to Lessor’s rights to
bring action against Lessee and/or releases Lessee from complying the Environmental Requirements.
Lessee shall promptly notify Lessor of any communication or report that Lessee makes to any
governmental authority regarding any possible violation of Environmental Requirements or release or
threat of release of any Hazardous Materials onto or from the Leased Property.
	 
	12.5	 	Lessee agrees to give Lessor prompt (but in any event within 3 (three) business days as of the date
it becomes aware of any of the following circumstances) written notice of: (1) all pending, or to
Lessee’s knowledge threatened or anticipated proceedings, and all notices, demands, requests or
investigations, relating to any possible non-compliance of the Environmental Requirements or
relating to the issuance, revocation or change in any environmental authorization required for
operation of the Leased Property; (2) all releases of Hazardous Materials at, on, in, under, over
or in any way affecting the Leased Property, or any release known by Lessee at, on, in or under any
property adjacent to the Leased Property; and (3) all facts, events or conditions that could
reasonably lead to the occurrence of any of the above-referenced matters.

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	12.6	 	Further Assurances. In addition to all other rights and remedies available to
Lessor under this Lease Agreement or otherwise, Lessor may, in the event of a breach of
Environmental Requirements or the requirements of this clause that are not cured by Lessee within
the sixty (60) days following notice of such breach by Lessor, require Lessee to provide financial
assurance (such as a third party guarantee) of Lessee’s ability to comply with its obligations
hereunder in an amount and form reasonably satisfactory to Lessor. The requirements of this
paragraph are in addition to and not in lieu of any other provision in this Lease Agreement.

CLAUSE 13. 
INSURANCES OF THE LEASED PROPERTY.

	13.1	 	Insurances by Lessee. Lessee shall hire and maintain in full
force and effect at its expense the following insurance policies during the period of the Lease
Term and/or until Lessee vacates and returns possession on the Leased Property to Lessor:
	 
	(a)	 	Broad Form Public Liability Insurance or its local equivalent
(i.e. all risk or general civil liability), covering claims for bodily injury and damages to third
party property occurring in, around or from the Leased Property, in an amount not less than the
replacement cost of the Leased Property without considering the cost of excavation, foundation and
footings and without any deduction for physical depreciation which shall not be less than US$2.5
million dollars (two

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	million five hundred thousand Dollars 00/100), per occurrence. The coverage shall include contractual
liability. Such insurance shall include Lessor Parties as additional insured entities for their
vicarious but not independent liability and a “no Subrogation” clause against Lessor.

	13.2	 	Insurance by Lessor. Lessor shall hire and maintain in full
force and effect charged to the Reimbursable Expenses account (***) the following insurance
policies during the Lease Term and/or until Lessee vacates and returns possession on the Leased
Property to Lessor:
	 
	(a)	 	“All Risk” property insurance to include but not limited to
coverage against any loss or damage by lighting explosion, hurricane and hail, airplanes, vehicles
and smoke, earthquake and/or volcanic eruption, strikes, riots and vandalism and any other risks
now or hereafter embraced by the so called “Extended Coverage” known as “All Risk” (including
replacement of windows and glasses) under the terms and conditions necessary to prevent Lessor or
Lessee from becoming co-insured under the terms of the applicable policies. In any event, the
insured amount may not be less than one hundred percent (100%) of the then “full insurable value”
on the hiring date (replacement value), which for the purpose of this clause shall be deemed as the
replacing cost of the Leased Property, less the cost of excavations, foundations and footings, and
without any deductions for physical depreciation of the Leased Property. Such “full insurable
value” shall be updated from time to time at least every other year by an appraisal. The costs of
the foregoing insurance and appraisal shall be Reimbursable Expenses. Lessor may at its option
procure an appraisal to determine the full insurable value of the Leased Property.
	 
	(b)	 	Coverage for Boiler and Machinery and any other equipment as
installed

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	on the Leased Property for the insured amount as determined by Lessor but that in any case may not
be less than one hundred percent (100%) of the “full insurable values”. The premium for this
insurance is a Reimbursable Expense.
	 
	(c)	 	Insurance for Rental Fees Loss (Consequential Losses) that
covers the actual pecuniary loss resulting from those monthly installments of the Lease Price that
Lessor could stop receiving due to the interruption of Lessee’s operations on the Leased Property as
a consequence of any casualty, for the insured amount equivalent to twelve (12) monthly payments of
the Lease Price, and any other amounts payable to Lessor in conformity with this Lease Agreement.
The premium for this insurance is a Reimbursable Expense.
	 
	(d)	 	Broad Form Public Liability Insurance or its local
equivalent, covering claims for bodily injury and property damage occurring on, around or from the
Leased Property, in an amount not less than the equivalent to US$1,000,000.00 (one million Dollars
00/100), per occurrence. The coverage shall include contractual liability. Such insurance shall
include Lessee Parties as additional insured parties for their vicarious but not independent
liability. The costs of the above insurance shall be a Reimbursable Expense.
	 
	13.3	 	Insurance Companies. All of the insurances detailed in this
clause shall be provided under valid and enforceable policies issued by authorized insurance
companies with a financial rating of AM Insurer Financial Strength rating of “A” or better (if
unavailable, S&P “A” or better will be acceptable), and Financial Size Category of IX or larger, or
as otherwise acceptable to Lessor. If the insurance is provided through the London Market, then
Lloyd’s of London syndicates shall have a Minimum Stamp Capacity of the equivalent of
$100’000,000.00 — U.S. Cy. (one

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	hundred Million Dollars U.S. Cy.) or otherwise acceptable to Lessor.
	 
	13.4	 	Certificates Each party shall deliver to the other copies of
all the respective certificates of insurance (policies and/or endorsements) within the thirty (30)
days following the Commencement Date and within the thirty (30) days following renewal or
replacement of such insurance. The insurance policies shall state that the written notice shall be
given to the parties fifteen (15) days before (i) the cancellation or non-renewal of any required
insurance policy to be maintained under this Lease Agreement and (ii) any material adverse change
in such insurance policy causing that the policy does not meet the requirements of this Lease
Agreement.
	 
	13.5	 	Priority of Insurance, Waiver. Lessor and Lessee, in the
exercise of their commercial business judgment, acknowledge that the use of insurance is the best
way to protect against the risk of loss to their respective properties and economic interests in
the Leased Property. Accordingly, the parties shall use in the first place the proceeds paid by the
insurance company to repair or rebuild the Leased Property. All insurance maintained pursuant to
the terms of this Lease Agreement shall provide that it is primary to and noncontributory with any
and all insurance maintained by or afforded to an additional insured under such insurance, but only
to the extent of liabilities falling within the indemnity obligations of a named insured under
Clause 17.1 of this Lease Agreement. Except where prohibited by law, Lessee will
cause its liability insurers to waive all rights of recovery or subrogation against the Lessor
Parties, and the Lessor will cause its liability insurers to waive all rights of recovery or
subrogation against the Lessee Parties, but only to the extent of liabilities falling within the
indemnity obligations of a named insured. Except where prohibited by law, each party

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	will waive and cause its insurers providing “all risk” property insurance to waive all rights of
recovery or subrogation against the other party, and the Lessor Parties or Lessee Parties as appropriate, for any claims within the coverage of such “all risk” property coverage but only with
respect to the negligent acts, errors or omissions of such parties.
	 
	13.6	 	Payment of insurance. In case of casualty to the Leased
Property resulting in damage or destruction, the proceeds from the insurance, less the actual
costs, fees and expenses, if any, incurred in connection with assessment of the loss, shall be made
available to Lessor, any creditor of Lessor, any mortgagee or Lessee, as their respective interests
appeared, for purpose of restoring, replacing, rebuilding, or altering the Leased Property as
nearly as possible to its value, condition and characteristics it did have immediately before such
damage or destruction.
	 
	13.7	 	Failure to Carry. Without limiting Lessor’s remedies set
forth in Clause 20.6 hereof, in the event Lessee fails to hire and maintain the
insurance coverage on its account set forth in this Clause 13, including in the
case set forth in Clause 13.8, Lessor shall have the right (but not the
obligation) to obtain insurance coverage to protect Lessor and Lessee. In this case, Lessee shall
promptly reimburse to Lessor the cost of the relevant insurance premiums, and interest accrued at
the Interest Rate computed from the date the cost was incurred and until the date the cost and
interest accrued are reimbursed to Lessor; provided, however, that the
aforementioned shall not release Lessee from its obligation to hire and maintain the insurance
coverage on its account set forth in this Clause 13 and to cure the breach in

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	terms of this Agreement.
	 
	13.8	 	Lessee’s Right to Procure Property’s Coverage. Subject to the
terms of this Clause 13.8, Lessee shall have the option to procure and maintain
the property insurances described in Clause 13.2 (the “Property Insurances”)
Lessee’s right to procure and maintain said Property Insurances shall be conditioned on the prior
satisfaction of each of the following matters.
	 
	(a)	 	That there is no default or Event of Default by Lessee under this Lease Agreement;
	 
	(b)	 	That Lessor approves Lessee’s proposed insurance coverage; provided that Lessor may approve only
insurance coverage that meet the requirements of this Lease Agreement;
	 
	(c)	 	The Property Insurance policy of the Leased Property shall designate Lessor as the first
beneficiary under the terms approved by Lessor and contain standard mortgagee clauses in favor of
the holders of mortgages on the Leased Property, if any; and
	 
	(d)	 	That the parties hereto have executed an amendment agreement to this Lease Agreement, as to the
modification of this and any other related clauses to the Leased Property Insurance, including
without limitation those related with Reimbursable Expenses, with the appearance of the Guarantor
of Lessee to state its acceptance of such modification and confirmation of the Guaranty.
	 
	(e)	 	The amendment agreement referred to in the preceding item shall further include that Lessor shall
be entitled to proceed under the same terms set

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	forth in Clause 13.7 above, in the event of any default by Lessee with its
obligation to maintain in full force and effect the Property Insurances, provided that all expenses so
incurred by Lessor, including the payment of the relevant premiums, shall be Reimbursable Expenses.
	 
	(f)	 	Lessee and Lessor shall have negotiated, executed and delivered an amendment to this Lease
Agreement which addresses the foregoing and related matters and which provides, among other things,
that (1) if at any time Lessee fails to keep the Property Insurances for the Leased Property in full force and effect, Lessee shall be
fully responsible for the payment of all amounts (plus the applicable deductible) that would have
been available if such Property Insurances would have been in full force and effect, and (2) that
the Lessee shall continue obliged to pay such amounts in conformity with Clause
13.2 above even after termination of this Lease Agreement, or otherwise, that Lessee
shall be responsible to pay the damages and losses derived from the lack of said insurance due to
any perils occurred during the Lease Term and/or any further occupancy period of the Leased
Property by Lessee.

CLAUSE 14. 
RESTORATION OF THE LEASED PROPERTY.

	14.1	 	If at any time during the Lease Term, the Leased Property is damaged by fire or other casualty due
to Force Majeure, not attributable to Lessee or any Lessee Parties, Lessor shall notify Lessee as
quickly as possible but in no event later than thirty (30) days following the casualty, the
estimate time to complete restoration of the Leased Property. In this same case, if the occurred
casualty impedes Lessee the partial or total use of the Leased Property and the restoration time
exceeds eight (8) months from the date on which the

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	casualty occurred, Lessee may not to rescind this Lease Agreement through giving the corresponding
written notice to Lessor within five (5) days following receipt of the above mentioned Lessor’s
notice.
	 
	14.2	 	If Lessee elects not to rescind this Lease Agreement, pursuant to the preceding paragraph, or if Lessor
estimates that the restoration will take less than six (6) months, Lessor shall promptly commence
the restoration works as soon as it receives the corresponding payment from the insurance company
under the insurance policies of the Leased Property. This restoration shall not include Lessee-Made
Alterations or any other Lessee’s property regarding which Lessee shall be responsible for paying
their restoration cost, whose works shall also promptly commence in order to restore the Leased
Property to those conditions having before the casualty occurred. In this same case, Lessee shall
have the right to occupy the restored part of the Leased Property or any portion thereof as soon as
it is ready, without having to wait for the whole restoration period to elapse.
	 
	14.3	 	If the Leased Property is totally or substantially damaged or destroyed by any peril not covered by
any insurance of the Leased Property or any Lessor’s mortgagee requires that proceeds from the
insurance be applied to the indebtedness secured by the mortgage over the Property, and such
circumstances impede the use of the Leased Property by Lessee, Lessor or Lessee may rescind this
Lease Agreement through giving written termination notice to the other party within the thirty (30)
days following the date from (i) the destruction or damage or (ii) from the notification to Lessor
by the mortgagee requiring the proceeds from the insurance and notice by Lessor of the forgoing to
Lessee. In either of these cases, the rights and obligations

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	derived from this Lease Agreement shall be deemed as terminated with no liability for the parties
therefore, except for Lessee’s obligation to pay any accrued amount on its account pursuant to this
Lease Agreement as generated before its termination date, which shall include the amount for
repairing those damages caused to the Leased Property and not covered by the insurances of the
Leased Property referred to in Clause 13.
	 
	14.4	 	Except in the case that the damage or destruction were caused by Lessor’s acts or omissions, Lessee
shall timely reimburse to Lessor the cost of deductibles under the insurance policies hired by
Lessor and/or pay such deductibles corresponding to the insurance policies hired by Lessee, within
the ten (10) days following receipt of the insurance company and/or Lessor payment requirement. In
all cases, the costs for the above concepts as incurred by Lessor shall be understood as made on
the account of Lessee and considered a Reimbursable Expense.
	 
	14.5	 	In all cases, the Lease Price that should be reduced for impeding Lessee to totally or partially
use the Leased Property for the causes stated in this Clause 14, shall be
applicable during the restoration period and in proportion of that built area of the Leased
Property that due to the peril Lessee is unable to use, against the total built area of the Leased
Property, in the understanding, however, that Lessee shall have no right to any Lease Price
abatement in the event that the relevant damage or destruction resulted from the negligence or
willful misconduct of Lessee or any Lessee’s Parties, in conformity with the provisions of the
Applicable Civil Code which are correlative to those provided in article

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	2425 of the Federal Civil Code.
	 
	 	 	Notwithstanding the provisions of Clause 7.5, in case Lessee is restricted from
using totally or partially the Leased Property, solely for the causes referred to in this
Clause 14, the Lease Price shall be reduced (only during the period of reparation of
the Leased Property) and shall be equal to the difference that may exist between the then-current
Lease Price and the amount that is actually paid to Lessor pursuant to the insurance mentioned in
Clause 13.2 (c).

CLAUSE 15.

TAKING.

	15.1	 	If any part of the Leased Property should be Taken and (i) the Taking prevents or materially
interferes the use of the Leased Property by Lessee or (ii) as a result of such Taking, Lessor’s
mortgagee accelerates the payment of any indebtedness secured by the Leased Property, or it applies
any part of the compensation to the payment of any unpaid balance of the indebtedness, this
Agreement shall be deemed as terminated and the Lease Price shall not be paid as of the date on
which the Taking decree is enforced, in the understanding, however, that
Lessee’s obligation to pay any accrued amount on its account pursuant to this Lease Agreement, as
generated before the Taking decree is enforced, shall remain applicable to Lessee.
	 
	15.2	 	If part of the Leased Property is Taken and this Lease Agreement is not terminated as set forth
above, Lessor shall apply the received compensation from the Taking to restore or reconditioning,
up to the above amount, the Leased Property, and the Lease Price payable during the then unexpired
Lease Term shall be reduced,

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	in a fair and reasonable fashion considering the relevant circumstances; in the
understanding, however, that Lessor’s obligation to apply the received compensation from
the Taking to restore or reconditioning the Leased Property (i) shall be limited to apply to said
restoration that part of the proceeds from the compensation that is not required to be applied to
the secured indebtedness by a mortgagee of Lessor, and (ii) shall be subject to the Taking actually
interfering or preventing in any manner the use of the Leased Property by Lessee.

CLAUSE 16. 

SUBORDINATION AND FINANCING MATTERS.

	16.1	 	Subordination. The parties acknowledge that this Lease
Agreement shall survive any transfer title to the Leased Property. Notwithstanding the foregoing,
Lessee agrees, upon request of Lessor, to subordinate this Lease Agreement to any guaranty created
over the Leased Property by Lessor, provided Lessor requires the creditor as a condition that such
creditor should not disturb the possession and other Lessee’s rights agreed upon this Lease
Agreement so long as Lessee continues to perform its obligations hereunder throughout the Lease
Term and New Lease term, if any, and in the event that the creditor acquires the Leased Property
through foreclosure proceedings or otherwise, the mortgagee or any other buyer should accept Lessee
as lessee of the Leased Property under the terms and conditions of this Lease Agreement and to
comply with Lessor’s obligations thereunder (but only while it is the landowner of the Leased
Property); and Lessee shall accept to recognize such creditor, or any other third party acquiring
title to the Leased Property, as lessor. Lessee and Lessor hereby agree to execute and deliver the
appropriate instruments (at Lessor’s expense) which might be necessary to comply with the
agreements contained in this clause, regarding the current Lessor’s creditors, if any, within the
thirty (30) days following the date of

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	execution of this Lease Agreement.
	 
	16.2	 	Financing Assistance. Lessee agrees to cooperate with Lessor
to facilitate filing of any financing of Lessor by providing those required consents, agreements and
documents (including financial statements and any other information of Lessee and its guarantor)
that the financial institutions might reasonably request, in the understanding that the
confidential information of Lessee and Guarantor shall remain in any time as confidential.
	 
	16.3	 	Estoppel Certificate. Lessee agrees from time to time, within
the ten (10) days following receipt of Lessor’s request, to execute and deliver to Lessor or
Lessor’s designee the required estoppel by Lessor evidencing that this Lease Agreement is in full
force and effect, the date until which the Lease Price has been paid, that Lessor is not in default
hereunder (or detailed specification of the nature of Lessor’s default), the termination date of
this Lease Agreement, and such other matters pertaining to this Lease Agreement as required by
Lessor, and Lessee shall cause any guarantor of Lessee’s obligations under this Lease Agreement
acknowledges such and his own obligations in conformity with the guaranty.

CLAUSE 17. 

INDEMNIFICATION FROM THIRD PARTY CLAIMS.

	17.1	 	Indemnity by Lessee. Lessee shall indemnify and keep Lessor
and/or Lessor Parties harmless from and

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	against all Claims brought by third parties and that arise from the use or
occupation of the Leased Property by Lessee or Lessee Parties or from any other
act, omission or fact permitted or suffered by Lessee or Lessee Parties due to or relating to the
Leased Property.
	 
	17.2	 	If any such Claims is filed by a third party against Lessor and/or any Lessor Parties, upon request
by Lessor, Lessee shall defend Lessor and/or involved Lessor Parties in such proceeding at Lessee’s
sole cost by designating therefore a legal counsel reasonably acceptable to Lessor and/or the
involved Lessor Parties. In no event shall Lessee be obliged to indemnify Lessor and/or any Lessor
Parties if the Claim derived from any willful or negligent act or omission of Lessor or such other
Lessor Parties.
	 
	17.3	 	Indemnity by Lessor. Likewise, Lessor shall indemnify and
keep Lessee and Lessee Parties harmless from and against any Claims brought by
third parties and that arise from Lessor’s or Lessor Parties, use or occupancy
of the Leased Property, or from any other act, omission or fact permitted or suffered by Lessor or
Lessor Parties due to or relating to the Leased Property.
	 
	 	 	If any such Claims is filed by a third party against Lessee and/or any Lessee Parties, upon request
by Lessee, Lessor shall defend Lessee and/or involved Lessee Parties in such proceeding at Lessor’s
sole cost by designating therefore a legal counsel reasonably acceptable to Lessee and/or the
involved Lessee Parties. In no event shall Lessor be obliged to indemnify Lessee and/or any Lessee
Parties if the

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	Claim derived from any willful or negligent act or omission of Lessee or such other Lessee Parties.
	 
	17.4	 	Survival. The provisions of this Clause 17 shall survive
notwithstanding the termination for any reason of this Lease Agreement, with respect to any Claims
asserted against Lessor or Lessee and until expiration of any applicable statute of limitations.

CLAUSE 18. 

SURRENDER

	18.1	 	Vacating and Surrender. Upon termination for any reason of
this Lease Agreement, Lessee is obligated to vacate the Leased Property and return possession and
use of same to Lessor without delay and not needing Lessor’s request or judicial order; and in the
same good conditions as the Leased Property had on the Commencement Date, including environmental
conditions, except wear and tear for regular use of constructions thereon.
	 
	18.2	 	Delivery and Receipt Minutes. The parties hereto shall
evidence in written minutes that shall be signed by their respective representatives and any other
evidence of the conditions in which the Leased Property is being returned (for example, photographs
or video) as to the act through which Lessee returns possession on the Leased Property to Lessor,
and of any circumstances related to such delivery and receipt. In the above Minutes the parties
hereto shall further evidence that Lessee delivered and Lessor received to its satisfaction the
documents referred to in Clauses 18.3 and 18.4 of this clause, otherwise
delivery and receipt of possession of the Leased Property may not be

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	deemed concluded, and in this case such circumstance shall be understood equivalent to a “Holding Over” and, therefore, all effects referred to in Clause 19 shall be applicable.
	 
	18.3	 	Environmental Studies. Lessee shall deliver to Lessor the
Site’s Final Environmental Studies in terms of Section 12.3 above additionally, Lessee shall deliver to Lessor 30 (thirty) calendar
days prior to termination for any reason of this Lease Agreement, any other environmental studies
and sports to the extent these are technically or under the Environmental Requirements necessary or
convenient to confirm that the Leased Property is free from Contamination Conditions resulting from
Lessee’s (or any Lessee party’s) use of the Leased Property and it is physically in the same
environmental conditions as Lessee received it from Lessor as of the Commencement Date of this
Lease Agreement (subject to the terms of Section 12.3 above), and (ii) copy of the written notices
filed by Lessee with any and all competent authorities (duly sealed as received from any such
authorities) with respect to the stoppage of activities or operations and closure of Lessee’s
facilities at the Leased Property, and copies of the complete files corresponding to any site
abandonment procedures in case required to be followed by Lessee under applicable law. As set forth
in Section 12.3 above, Lessee shall be responsible to repair any damages caused to the Leased
Property, including remediation of any Contamination Condition resulting from Lessee’s (or any
Lessee party’s) use of the Leased Property caused at, in, on, under, over or from the Leased
Property, as well as for compensation damages and/or indemnity for injuries caused to human health,
the environment, and to contiguous or adjacent properties to the Leased Property derived from any
Contamination Condition resulting from Lessee’s (or any Lessee party’s) use of

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	the Leased Property.
	 
	18.4	 	Likewise, Lessee shall be obliged to deliver to Lessor within the last thirty (30) calendar days
prior to the date of vacancy and returning possession of the leased Property, (i) all update
(performed by an Approved Environmental Consultant) of the Site’s Final Environmental Studies
and/or if remediation to Cure any Contamination Conditions resulting from Lessee’s (or any Lessee
party’s) use of the Leased Property was required, the documents referred to in Clause
12.3(v); and (ii) certificate issued by the Federal Office of the Prosecutor for
Environmental Protection and/or the Ministry of Environment and Natural Resources, and by any
competent local authority as required under the Environmental Requirements, confirming that derived
from the notice on the closure of Lessee’s facilities in the Leased Property, there are no pending
obligations to be complied with by Lessee or Lessee Parties.
	 
	18.5	 	Delivery of the documents referred to in the preceding paragraphs of this clause by Lessee may not
be understood as a release of Lessee from the obligation to comply with the filing of any other
studies and/or information before the competent authorities under the Environmental Requirements
derived from closure of Lessee’s facilities in the Leased Property.
	 
	18.6	 	The parties hereby agree that none of the guaranties granted by Lessee or its guarantors for
securing Lessee’s compliance of this Lease Agreement in favor to Lessor may be released without the
prior written confirmation by Lessor stating that all of the requirements referred to in this
Clause 18 had been fulfilled.

 

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	18.7	 	Property of Lessee. Unless otherwise agreed by the parties hereto in writing, all
commercial [***] and installation of Lessee, and any other equipment net permanently attached
to the Leased Property placed or installed by Lessee on the Leased Property, shall remain the
property of Lessee, and it shall remove those upon termination for any reason of this Lease Agreement, and Lessee shall repair,
at its own expense, all damages (except reasonable wear and tear) resulting from the
installation, maintenance or removal of such property, including any signage, billboards,
canopies and similar Lessee’s installations.
	 
	18.8	 	Lessee’s Property Abandonment. Lessee hereby expressly acknowledges and agrees that
any Lessee’s property remaining in the Leased Property for more than thirty (30) days after
termination for any reason of this Lease Agreement shall be understood as abandoned, without
requiring any formality, including judicial order. Therefore, Lessee hereby authorizes Lessor
to dispose of such Lessee’s property in any manner as Lessor deems it appropriate and without
incurring any liability, which includes the removal of such property off the Leased Property
and its final disposal. The costs therefrom shall be on the account of Lessee and payable as
soon as Lessor demands its payment.
	 
	 	 	The provisions of this Clause 18.8 shall remain in effect, thus, the aforementioned
payment obligation shall survive notwithstanding the termination for any reason of this Lease
Agreement.
	 
	 	 	CLAUSE 19.

HOLDING OVER.
	 
	19.1	 	Holding Over. The parties agree herein that Lessee’s default of the obligation to
vacate and return possession on the Leased Property to

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	Lessor under the terms of this Lease Agreement on the last day of the Lease Term or before
on such corresponding date due to an early termination, shall be understood as a Holding
Over of the Leased Property. Therefore, such Holding Over shall not produce the effect of
concerting the Lease Term into a undefined lease agreement term.
	 
	19.2	 	Applicable Lease Price under Holding Over. Notwithstanding any provisions on the
contrary in this Lease Agreement, in the event of a Holding Over of the Leased Property by
Lessee, and without this Lease Agreement may be deemed as amended, Lessee shall remain obliged
to comply with all its obligations hereunder, including the payment of the Lease Price,
maintenance fees and any other payments, including the Reimbursable Expenses, in the
understanding however, that the Lease Price that Lessee shall pay to Lessor throughout the
Holding Over period shall be equivalent to the amount of the Lease Price then in effect
plus 75% (seventy five percent) of said Lease Price.
	 
	19.3	 	Waiver. Lessee acknowledges that its obligation to surrender the Leased Property is
governed by these provisions and hereby expressly waives any rights it may have pursuant to
the law with respect to such Holding Over.
	 
	 	 	CLAUSE 20.

DEFAULTS AND REMEDIES.
	 
	20.1	 	Lessee Defaults. Each of the following events shall be an event of default
(“Event of Default”) by Lessee under this Lease Agreement, if Lessee fails to correct
such Event of Default within the applicable cure period.

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	20.2	 	Unless otherwise expressly stated for a specific even the sure period for any Events of
Default shall be thirty (30) days form receipt of Lessons written notice specifying the Event
of Default by Lessee or at the expiration of any other term agreed upon by Lessor and Lessee
required in order to cure the relevant failure.
	 
	20.3	 	Events of Default:
	 
	(a)	 	If Lessee operates or use the Leased Property for any use other than the Authorized Use;
	 
	(b)	 	If Lessee fails to make timely payment of any monthly installment of the Lease Price or any
other payment on its account under this Agreement. The period for curing this Event of Default
is five (5) business days. If Lessee fails to make timely payment of any monthly installment
of the Lease Price or any other payment on its account under this Agreement more than two
times during any Lease Year, the third of such violations shall be deemed an Event of Default
(without requiring notice) and without period to cure;
	 
	(c)	 	If any insurance to be maintained by Lessee pursuant to this Agreement is cancelled,
terminated, expired, reduced, or changed without the prior Lessor’s written consent. The
period for curing this Event of Default is ten (10) calendar days;
	 
	(d)	 	If Lessee carries out any assignment, subleasing or other transfer of any Lessee’s rights or
obligations derived from this Lease Agreement without the prior Lessor’s written consent. In
this case, there shall not be a period for curing this Event of Default;
	 
	(e)	 	If Lessee fails to execute any

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	reasonable instrument of subordination, atornement or the estoppel certificate within the
time periods set forth in Clause 16 above, after Lessons written request for such
instruments or estoppels;
	 
	(f)	 	In Lessee breaches in a material respect any of the Environmental Requirements of Clause
12 above;
	 
	(g)	 	If Lessee of any Lessee Parties fail to abide or comply with any Applicable Regulations that
applies to the Leased Property, including its amendments form time to time, in the
understanding that Lessee or any Lessee Parties breach the same rule or regulation more than
two times, the third of such violations shall be deemed an Event of Default (without requiring
notice) and without period to cure);
	 
	(h)	 	If Lessee or any guarantor or surety of Lessee’s obligations hereunder (i) make any
assignment of its properties for the benefit of creditors; (ii) commence any case, proceeding
or other action seeking to have an order for relief to its favor as a debtor or to be declared
itself in bankruptcy or insolvency, or seeking reorganization, arrangement, adjustment,
liquidation, dissolution, or composition of its debts, or (iii) if a receiver, trustee,
custodian or other similar official is designated for the administration of part or the whole
of its properties (collectively a “Proceeding for Relief”); (iv) become subject of any
Proceeding for Relief which is not dismissed within the sixty (60) days following its filing;
or (v) fails to maintain its legal existence (if Lessee, guarantor or surety is a corporation,
partnership, or other entity), in which case there shall be no period for curing this latter
Event of Default.
	 
	(i)	 	If Lessee ceases operations on or abandons the Leased Property for a period in excess of
thirty (30) days;

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	(j)	 	If Lessee breaches any of the requirements set forth in Clause 23 (Guaranty), having
be period for curing this Event of Default.
	 
	(k)	 	If Lessee fails to materially comply with any of its other obligations hereunder and it is
not cured at the expiration of thirty (30) days from receipt of Lessor’s written notice
starting the relevant Lessees Event of Default.
	 
	20.4	 	Liabilities of the Parties. In conformity with the Applicable Regulations and
provisions of this Lease Agreement, provided Lessee is in compliance with all its obligations
hereunder, Lessor warranties Lessee the use and peaceful enjoyment of the Leased Property
during the Lease Term.
	 
	20.5	 	Lessee’s Remedies. Lessor shall not be in default hereunder, unless Lessor fails to
comply with any of its obligations at the expiration of a thirty (30) day term after receipt
of Lessee’s written notice specifying the relevant failure or at the expiration of any other
term agreed upon by Lessor and Lessee required in order to cure the relevant failure. Upon the
occurrence of an Event of Default, and provided that Lessee is not then in default of any of
its obligations under this Agreement, Lessee may exercise any of the following remedies:

	 	-	 	Perform any obligation not performed by Lessor and, if so elected
by Lessee, Lessor shall reimburse to Lessee all costs and expenses incurred by
Lessor in performing such obligation, plus interest accrued at the Interest Rate
from the date Lessee incurred such costs and expenses, and until the date on
which Lessee receives effective payment of the due principal amount and interest
accrued.
	 
	 	-	 	The exercising of these remedies by Lessee, shall not

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	 	release Lessor from the compliance of their obligations under this Agreement.

	(a)	 	All obligations of Lessor under this Lease Agreement shall be binding to Lessor as long as it
is the landlord of the Leased Property and not thereafter. The term “Lessor” in this Lease
Agreement shall mean only the landlord of the Leased Property during such time.
	 
	(b)	 	Upon transfer by said landowner of title to the Leased Property, at that moment such
landowner shall be released from the compliance of all obligations derived to it as lessor.
However, such obligations shall be complied during the Lease Term per each new
landowner during the time it is owner of the Leased Property, in conformity with the
provisions of the Applicable Civil Code which are correlative to those provided in article
2409 of the Federal Civil Code.
	 
	20.6	 	Remedies. Upon the occurrence of an Event of Default, and provided that Lessor is not
then in default of any of its obligations under this Agreement, Lessor may exercise any of the
following remedies:
	 
	(a)	 	Terminate this Lease Agreement and in such event Lessee shall immediately pay to Lessor the
unpaid balance of the Lease Price for the entire term remaining in the Lease Term and any
other amounts on the account of Lessee, including insurance premiums, maintenance fees, and
all other Reimbursable Expenses, and all expenses incurred by Lessor in pursuing effective
payment of the due obligations by Lessee, including interest accrued at

 

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	 	 	the Interest Rate, attorneys and experts’ fees and court costs to recover the possession of
and restitute the Leased Property to such conditions upon it was delivered to Lessee.
	 
	(b)	 	Perform any obligation net performed by Lessee and, if so elected by Lessor, Lessen shall reimburse to Lessor all costs and
expenses incurred by Lessor in performing such obligation, plus interest accrued at the
Interest Rate from the date Lessor incurred such costs and expenses, and until the date on
which Lessor receives effective payment of the due principal amount and interest accrued.
These payments shall be part of the Lease Price and/or Reimbursable Expenses for purposes of
this Lease Agreement.
	 
	 	 	The exercising of this remedy by Lessor, shall not release Lessee and/or its Guarantor from
the compliance of their obligations under this Agreement.
	 
	 	 	Lessor shall have a duty to mitigate all losses and damages, including without limitation,
leasing the Leased Property to a third party as quickly as reasonably possible.
	 
	(c)	 	All remedies set forth in favor of Lessor by this Lease Agreement shall be in addition to any
other remedies that Lessor might exercise pursuant to the law in defending its interests.
	 
	 	 	CLAUSE 21.

ENTRY TO LEASED PROPERTY BY LESSOR.
	 
	21.1	 	Inspection by Lessor. Lessee shall permit Lessor and its authorized representatives
to enter the Leased Property at any time, prior written notice from Lessor given at least
forty eight (48) business hours in advance, for purpose of inspecting Lessee’s appropriate use
of the Leased Property

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	pursuant to this Agreement or for performing any required world on the Leased Property,
whether it has been requested by Lessor or it is necessary due to the failure of Lessee to
carry out the maintenance and/or repair on its account within the ten (10) days following
receipt of Lessors notice stating the future of Lessee with the above concepts, provided, however, that no
written notice shall be required to Lessee in case of an emergency.
	 
	 	 	The Parties agree that nothing contained on this Clause shall be deemed as a limitation to
Lessor’s rights to perform the inspections and tests of the Leased Property in the same
terms as set forth on Clause 12.4 above.
	 
	21.2	 	Prospective Lessee. In addition, Lessor shall have the right to enter the Leased
Property during usual business hours, prior written notice to Lessee given at least forty
eight (48) business hours in advance, for purposes of showing the Leased Property to
prospective lessees, financing parties, or purchasers, provided that in case of prospective
lessees, such right may only be exercisable during the last twelve (12) months of the Lease
Term. Lessee shall have the right to be present at any such tour through the Leased Property,
provided that should any prospective lessee or buyer were a direct competitor of Lessee,
Lessee may subject such access to any reasonable measure that Lessee may consider appropriate
to maintain the confidentiality of its properties information and operations within the Leased
Property.
	 
	21.3	 	No interference. In performing the above inspections, works or tours, Lessor shall
attempt, to the extent

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	possible, to minimize interference with Lessee’s operation.
	 
	 	 	CLAUSE 22.

NO WAIVER.
	 
	 	 	Any waiver, delay or non-exercise by either party of its right to enforce any provision of
this Lease Agreement shall not be a waiver or limitation of such party’s right to enforce
said or any other provision of this Lease Agreement in the future.
	 
	 	 	CLAUSE 23.

GUARANTIES.
	 
	23.1	 	Deposit. Lessor acknowledges that it has in its possession a deposit in the sum of
$55,000.00 for securing the performance of its obligations under this Lease Agreement (the
“Deposit”).
	 
	23.2	 	The Deposit shall be reimbursed to Lessee within the ten (10) days following: (i) termination
for any reason of this Lease Agreement, or (ii) the full payment of all Lessee’s outstanding
amounts in favor of Lessor, which ever occurs the latest.
	 
	23.3	 	Corporate Guaranty. As a material inducement to cause Lessor to enter into this Lease
Agreement and perform its obligations hereunder, is the fact that Thermadyne Holdings
Corporation holding company of Lessee (the “Guarantor”) on this date executes and
delivers to Lessor a lease guaranty in the form attached hereto as Exhibit “C” (the
“Guaranty”).
	 
	 	 	CLAUSE 24.

NOTICES AND DOMICILES.
	 
	 	 	Notices. Whenever it shall be necessary or desirable for one of the

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	parties to serve any notice or demand to the other party regarding this Lease Agreement,
such notice or demand shall be in writing and served personally or by recognized
international courier service (Federal Express, DHL or similar) to the following addresses:
	 
	(a)	 	Lessee:

Víctor Equipment de México, S.A. de C.V.
	 
	 	 	Telephone: 01 (662) 236 0000

Attention: Adolfo Francisco Centeno Morales
	 
	 	 	Address: Jesús Siqueiros No. 652

Col. Alvaro Obregón

Hermosillo, Sonora

83170
	 
	 	 	Copy to:
	 
	 	 	Thermadyne Holding Corporation
	 
	 	 	Attention: General Counsel

Address: 16052 Swingely Ridge Road,

Chesterfield, MO USA 63017
	 
	(b)	 	Lessor:

Banco J.P. Morgan, S.A.,

Institución de Banca Múltiple,

J.P. Morgan Grupo Financiero,

Trust Division,

as Trustee in Trust F/00030.

Paseo de las Palmas No. 405, Piso 15

Col. Lomas de Chapultepec,

Delegación Miguel Hidalgo,

11000 México, D.F.

Telephone: 5255) 5540-9508

Facsimile: (5255) 5283-1620

Attention: Trust Division

Adriana López Jaimes

adriana.lopezjaimes@jpmorgan.com

	 
	 	 	Copy to:

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	Prudential Real Estate Investors

Andrés Bello No. 10 - 11

Colonia Polanco,

Delegación Miguel Hidalgo,

11560 México, D.F.

Telephone: (5255) 5093 - 2770

Facsimile: (5255) 5093 - 2789

Attention: Pablo Barcos

E-mail: pablo.barcos@prudential.com

Attention: Valentina Villa

E-mail: valentina.villa@prudential.com

	 
	 	 	Copy to:

JV Partner

Industrial Global Solutions de

Mexico, S.A. de C.V.

Prolongación Paseo de la Reforma

No. 600 PB 31-D

Col. Santa Fé Peña Blanca

México, D.F. 01210

Teléfono: 52 55 3098-9002

Atención: W. Lachlan Elting

Correo electrónico: lelting@igs.com.mx
	 
	 	 	CLAUSE 25.

FEES AND EXPENSES
	 
	25.1	 	Brokerage Fees. Lessee expressly states that it did not retain any brokerage service
or intermediation for entering into this Lease Agreement.
	 
	25.2	 	Fees and Expenses. Except as provided in other provisions of this Lease Agreement,
each party shall be responsible for its own expenses and those of its agents, auditors,
attorneys and consultants incurred in connection with this Lease Agreement.
	 
	 	 	CLAUSE 26.

ACTS OF GOD; FORCE MAJEURE
	 
	 	 	Neither Party shall be responsible for delay or non-compliance with any of its obligations
hereunder (any monetary payment excluded), if such delay or non-compliance is caused by an
event of Force Majeure cause but only during the time period of such cause. For purposes of
this Lease Agreement, a “Force Majeure” cause shall mean a

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	cause entirely beyond the control of a party hereto such as riots, insurrections, martial
law, governmental delays, civil commotion, war, fire, flood, earthquake, or other casualty
or acts of God.
	 
	 	 	CLAUSE 27.

CONFIDENTIALITY
	 
	27.1	 	Confidential Information. The Parties agree that any and all Confidential Information
shall be considered and treated as such by the recipient party, its affiliates, subsidiaries,
shareholders, directors, officers and employees as owned by the other party, and shall not be
duplicated, published or disclosed in any form by the recipient party, its shareholders,
directors, officers and employees to any third party without the prior written authorization
from the delivering party, unless a disclosure of any Confidential Information is required
under a court or administrative order issued by competent federal and/or state authorities, or
disclosed in connection with the enforcement of this Lease Agreement. In the latter cases, the
disclosing party shall not incur in any responsibility for such disclosing. The recipient
party shall be obliged to respond appropriately to assure confidentiality of such Confidential
Information and to forbid and prevent non-authorized access thereto at any time.
	 
	27.2	 	Return of Confidential Information. Upon termination for any reason of this Lease
Agreement, the parties hereto shall return to the other all Confidential Information received
from the other party, including all copies that they have made of such information.
Confidentiality and non-disclosure obligations included in this clause shall continue in force
after termination for any reason of this Lease Agreement.

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	CLAUSE 28.

FIRST REFUSAL AND IMPROVEMENTS WAIVERS.
	 
	 	 	Lessee hereby expressly waives from this moment and during and after the Lease Term on its
extensions any rights of first refusal or preference right to buy the Leased Property and to
receive any compensation for any improvements it makes on the Leased Property. Lessee hereby
waives irrevocably the above rights that might be granted to it under the applicable law.
	 
	 	 	CLAUSE 29.

ENTIRE AGREEMENT AND AMENDMENT.
	 
	29.1	 	Entire Agreement. This Lease Agreement and all Exhibits attached hereto constitute
the entire agreements between the parties with respect to its subject matter, and substitute
and leave with no effects any other previous agreements thereon between them.
	 
	29.2	 	Terms. Unless otherwise specified, all of the terms (day, month or year) established
in this Lease Agreement shall be understood to be natural terms.
	 
	29.3	 	Amendments. This Lease Agreement may not be amended in any manner without the prior
written agreement by Lessor and Lessee.
	 
	29.4	 	Headings. The parties mutually agree that the headings contained in this Lease
Agreement are inserted for convenience of reference only and shall not be used in construing
it.
	 
	29.5	 	Language. This Lease Agreement is executed in English and Spanish languages; provided
that in case of any discrepancy between said versions, the Spanish language version shall
prevail.

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	29.6	 	Trustee’s limited liability. It is expressly understood and agreed by and among
the parties hereto that, except as otherwise expressly provided herein (i) this Lease
Agreement is executed by the Trustee, not individually on personally but solely as trustee
under the Trust and in the exercise of the power and authority conferred and vested in it as
such trustee, (ii) each and all of the representation undertakings and agreements in this
Agreement made on the part of Trustee are intended not as personal representations undertakings and
agreements by Trustee for which Trustee shall be liable with its own assets or for the purpose
or with the intention of binding Trustee as the Trustee under the Trust with its own assets,
(iii) that nothing herein contained shall be construed as creating any liability of Trustee,
or any incorporator or any past, present or future subscriber to the capital stock of, or
stockholder, officer or director of Trustee, to perform any covenant either express or implied
contained in this Agreement, against the assets other than the assets of the Trust;
provided, however, that nothing contained in this clause shall be construed to
limit in scope or substance the general corporate liability of Trustee, expressly provided to
the beneficiaries under the Trust F/00030, or pursuant to the Trust, for the gross negligence
or willful misconduct of Trustee or to exercise the same degree of care and skill as is
customarily exercised by similar institutions.
	 
	 	 	CLAUSE 30.

APPLICABLE REGULATIONS AND FORUM.
	 
	30.1	 	Jurisdiction. The parties agree that for the construction, performance and
enforcement of this Lease Agreement the applicable legislation shall be that applicable to its
object, including the Applicable Civil Code, and in case of any controversy the parties are
hereby submitted to the competent courts of

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

	 	 	the City of Mexico, Federal District, expressly waiving to any other jurisdiction that might
correspond to them by virtue of their current or future domiciles or by any other reasons. The
parties state that for purposes of this Lease Agreement, the Applicable Civil Code is that
applicable in the place where the Leased Property is located.
	 
	30.2	 	Notwithstanding the foregoing the parties convenient and agree that for the construction,
performance and enforcement of the Guaranty referred to in Clause 23.3.
	 
	 	 	IN WITNESS WHEREOF, the parties to this Lease Agreement, aware of its content, and since for
its execution there were no fraud, violence, bad faith or any other vicious that might void
their respective willingness, ratify and execute it through their duly authorized
representatives on the date and year set forth in the introductory paragraph hereof.

[SIGNATURES PAGE FOLLOWS]

 

INDUSTRIAL.THERMADYNE.CONTRATOARRENDAMIENTO.MP.30.10.08

“Lessor”

BANCO J.P. MORGAN, S.A.,

INSTITUCION DE BANCA

MULTIPLE J.P. MORGAN GRUPO

FINANCIERO, DIVISIÓN

FIDUCIARIA, AS TRUSTEE OF THE

TRUST CODE F/00030

/s/ PABLO BARCOS MELGAR

 

PABLO BARCOS MELGAR

Authorized Representative

“Lessee”

VICTOR EQUIPMENT DE MEXICO SA DE CV

/s/ ADOLFO FRANCISCO CENTENO

 

ADOLFO FRANCISCO CENTENO

MORALES

Authorized Representative

Witness

/s/ Winston Lachlan Eltino

 

[Winston Lachlan Eltino]exv10w22

Exhibit 10.22

	 

	Victor Equipment de México, S.A. de C.V.
	Av. Jesus Siqueiros No. 652.
	Col Alvaro Obregon.
	Hermosillo, Sonora.
	 
	 
	      Dear sirs,
	 
	      We make reference to the lease agreement
executed on October 13, 2008, between Victor
Equipment de México, S.A. de C.V. thereinafter
“Lessee”), as lessee and Banco J.P. Morgan, S.A.
Institucion de Banca Multiple, J.P. Morgan Grupo
Financiero, Division Fiduciaria in its capacity as
trustee under the trust agreement number F/00030,
as lessor (hereinafter “JP Morgan”), regarding the
property located in Av. Jose Matco. S/N.
Desarrollo Salvarcar. Cd. Juarez (hereinafter the
“Lease Agreement”).
	 
	      On this regard, by the foregoing, we
notify you, pursuant to the terms foreseen in the
Lease, that on October 14, 2009, JP Morgan
assigned, without reservations or limitations
whatsoever, all its rights and obligations as trustee
under the mentioned trust, as well as all its assets
and liabilities in favor of and against the trust, to
The Bank of New York Mellon. S.A. Institution
de Banca Multiple (hereinafter “BNYM”).
	 
	      Therefore, the rights and obligations of
the lessor regarding the Lease Agreement pertain
as of this date to BNYM, in its capacity of trustee
under the trust F/00030 surviving in its terms.
	 
	      Regarding the aforementioned, the
payment that Lessee shall make in favor of the
lessor under the Lease (including, with out
limitation, the payment of respective rent),  shall
continue to be paid by deposit to the bank account
in which the payment have been made as of this
date specifying the new account holder, nevertheless, the
future invoice will be issued to
you by the trust “F/00030 THE BANK OF NEW
YORK MELLON. S.A.”
	 
	      On the other hand, the notices that shall
be made to the lessor under the Lease shall be sent
with copy to the following address:
	 

 

 

	 

	The Bank of New York Melllon, S.A., Institucion

de Banca Multiple.

Pasco de la Reforma 115, Piso 23, Mexico. D.F.,

11000.

Division Fiduciaria

Att’n: Delegado Fiduciario
	 
	Sincerely yours,
	 
	The Bank of New York Mellon, S.A.,

Institucion de Banca Multiple.

In is capacity of trustee in trust F/00030
	 
	Mexico City Federal District on October 14th,

2009
	 
	/s/ Por: Rosa Adriana Lopez Mirres Figueroa
	 
	Por: Rosa Adriana Lopez Mirres Figueroa
	Su: Fiduciary delegate

	 
	/s/ ILLEGIBLE
	 
	Witness
	 
	 
	Witness

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