Document:

Lease

 Exhibit 10.31 

 
 

 
 MARIA LUISA MORALES ANDRADE, CERTIFIED TRANSLATOR 

INTERPRETER, LEGALLY CERTIFIED BY THE JUDICIARY BOARD OF 
 THE SUPREME COURT OF JUSTICE FOR THE STATE OF BAJA 
 CALIFORNIA, HEREBY
CERTIFY ACCORDING TO THE BEST OF MY 
 KNOWLEDGE, THAT THIS IS A TRUE TRANSLATION FROM SPANISH 

INTO ENGLISH OF THE ANNEXED DOCUMENT. 
 LEASE CONTRACT EXECUTED BETWEEN BERCALI, S.A. DE 
 C.V. BY ITS
PROXY ING. JOAQUIN ALVES IGLESIAS AND 
 INSTRUMENTOS MUSICALES FENDER, S.A. DE C.V. BY ITS 

SOLE ADMINISTRATOR OMAR BASHAR DARCAZALLIE. 
 ENSENADA BAJA CALIFORNIA, FEBRUARY 15, 2010. 
 Profa. MARIA LUISA MORALES
ANDRADE 
 PERITO TRADUCTOR 
 Autorizada por el Tribunal Superior de Justicia 
 de Baja California 

Tel. 646-175-70-23         Cel. 179-40-16 

Ensenada, B.C. 

e-mail: marialuisamorales@hotmail.com 
  

			
		
		 	/S/ MARIA LUISA MORALES ANDRADE         
		 	MARIA LUISA MORALES ANDRADE
		 	LICENSE 300

  
  

Blvd. Zertuche # 347, esq. Lirio, Fracc. Valle Dorado, Ensenada, B. C. 

(+52 (646) 175
7023            (-Tel-Fax (646) 176 6123 
 Mobile: +52 (646) 179 4016 
 Nextel: 152*141989*1 Tel 112
1944 
 Email: marialuisamorales@hotmail.com 

			
		  	Profa. MARIA LUISA MORALES ANDRADE
		  	PERITO TRADUCTOR
	OFFICIAL CERTIFIED TRANSLATION	  	Autorizada por el Tribunal Superior de Justicia
		  	de Baja California
		  	Tel. 646-175-70-23 Cel. 179-40-16
		  	Ensenada, B.C.
		  	e-mail: marialuisamorales@hotmail.com

  

 LEASE CONTRACT EXECUTED BY AND BETWEEN, “BERCALI, S.A. DE C.V.”, (HEREINAFTER REFERRED TO
AS: LESSOR), REPRESENTED HEREIN BY ITS LEGAL AGENTS, MR. JOAQUIN ALVES IGLESIAS AND JERONIMO BERTRAN PASSANI; AND “INSTRUMENTOS MUSICALES FENDER, S. A. DE C. V.” (HEREINAFTER REFERRED TO AS LESSEE), REPRESENTED HEREIN BY ITS SOLE
ADMINISTRATOR, MR. OMAR BASHAR DARCAZALLIE; IN ACCORDANCE TO THE STATEMENTS AND CLAUSES CONTAINED INTO THIS DOCUMENT. 
 S
T A T E M E N T S: 
 THE PARTIES HEREBY STATE as follows: 
 A.- LESSOR is a corporation constituted in accordance to the Mexican laws pursuant to Deed Number 27,461, Book 581 dated July 11, 2000, notarized before Attorney Angel Saad Said, Notary Public
No. 4, in and for Ensenada, Baja California, same which was recorded at the Department of Public Records in Ensenada, Baja California, under entry number 5077420, control number 226593, on September 18, 2000, and its legal agent is legally
empowered to the execution of this contract. 
 B.- LESSOR is the owner of the property located at 455 Calle Huerta, Colonia Carlos A.
Pacheco, Ensenada, Baja California; verifying the ownership of said property according to Deed No. 34, 293, notarized at Notary Public No. 4 in Ensenada, Baja California with the Notary Public, Attorney Angel Saad Said, and legally
recorded at the Department of Public Records in Ensenada, Baja California, under entry number 5101758, control number 529630, on November 12, 2002. 
 C.- LESSEE is a corporation constituted in accordance to the Mexican Laws on May 6, 1987, pursuant to Deed No. 47,733, book 533, notarized before the faith of Attorney Alfredo Gonzalez
Corral, Notary Public No. 3 in Ensenada, Baja California, same which was legally recorded at the Department of Public Records in Ensenada, Baja California under entry number 3,128, pages 282/283, Book 15; and its legal agent is legally capable
for the execution of this contract. 
 D.- In preparing the Lease Contract for THE WAREHOUSE, THE PARTIES have agreed to the following:

 C L A U S E S: 
 FIRST.- LESSOR hereby agrees to lease to LESSEE, and LESSEE hereby accepts in lease THE WAREHOUSE in perfect conditions of use, evidence that has been recorded upon the signing
of this contract, as well as the inventory of goods and installations mentioned into the annexed document, LESSEE hereby agrees to leave the WAREHOUSE in the same conditions as received, except for the normal use. 

Once the MUTUAL CONTRACT has been paid in full by LESSOR to LESSEE, LESSEE should show a deposit in the amount equivalent to a
monthly rental, as 

			
		  	Profa. MARIA LUISA MORALES ANDRADE
		  	PERITO TRADUCTOR
	OFFICIAL CERTIFIED TRANSLATION	  	Autorizada por el Tribunal Superior de Justicia
		  	de Baja California
		  	Tel. 646-175-70-23 Cel. 179-40-16
		  	Ensenada, B.C.
		  	e-mail: marialuisamorales@hotmail.com

  

 
a security, to cover the obligations contracted with LESSOR, and if such money does not cover the required amount, he will make sure to meet said requirement, the once LESSOR
receives the WAREHOUSE at his full satisfaction, LESSEE should receive a final receipt of the contractual relations. 

SECOND.- The term of this lease contract is for seven binding years, starting from the day on which the WAREHOUSE is under the disposition
of LESSEE. Since this contract is under an enforced due date, this contract is due on the date stated, without a dispossession or termination of lease as provided by the Civil Code for the State of Baja California, (hereinafter referred to as
the Civil Code), if LESSEE fails to vacant the WAREHOUSE, on the agreed date, it will not be prorogated, rental payment should be paid according to this contract. However, if LESSEE decides to continue using the WAREHOUSE, he should
request it, 180 days before the due date, being LESSOR free to decide whether he wants to renew the contract. 
 THIRD.-
Taking into consideration the foregoing clause, THE PARTIES hereby agree that in order to pursue with the lease, it is required a written agreement between the parties to this contract, which will include the agreement on the terms of the new
contracting term; however, if no agreement is reached, as long as LESSEE is still using the WAREHOUSE, the monthly rental will be a result of multiplying one point five (1.5) times the amount of the rental payment in force from the due date,
and LESSOR has not received at his full satisfaction the WAREHOUSE. 
 FOURTH.- In the event LESSEE fails to vacate the
WAREHOUSE on time, THE PARTIES hereby agree: 
 1.- The rental payments will be enforced according to the stipulations. 

2.- All the obligations contained into this document will be enforced until the WAREHOUSE has been returned to LESSOR. 

FIFTH.- The parties to this contract hereby agree that it is their intention to update the initial rental price agreed in this contract;
and for such effect, they agree that the updating should be made every year during the term of this contract according to the terms herein mentioned: 
 1.- The Initial Monthly rental agreement for the first year is in the amount of US Cy $ 12,739.00 (Twelve thousand seven hundred thirty nine U.S. Dollars), or its equivalent in Mexican Currency, at the
official exchange rate determined by the Mexican Authorities, plus the added value tax. LESSOR is hereby committed not to disclose without previous consent from LESSEE, LESSEE’S accounting and financing information to any individuals,
creditors, accountants, lawyers, legal agents, agents, officers, employees, advisors, consultants, and successors, or assignees. 
 2.- From the
effective date of this contract, the monthly rental will increase every 12 months, at the same increase percentage than the Consumer Price Index in San Diego, California, U.S.A., determined by the Bureau of Labor Statistics, for the previous twelve
months. 
 3.- The agreed rental payment, the value added tax, and any other tax derived from this contract, will be paid by LESSEE within the
first five days of each month at the domicile of LESSOR. 

			
		  	Profa. MARIA LUISA MORALES ANDRADE
		  	PERITO TRADUCTOR
	OFFICIAL CERTIFIED TRANSLATION	  	Autorizada por el Tribunal Superior de Justicia
		  	de Baja California
		  	Tel. 646-175-70-23      Cel. 179-40-16
		  	Ensenada, B.C.
		  	e-mail: marialuisamorales@hotmail.com

  

 4.- It is hereby agreed that in the event LESSOR fails to pay on time the monthly payments agreed on the
MUTUAL CONTRACT, the rental payments herein agreed, will be credited to the loan. In the event LESSEE fails to pay the 
 rental payments
stipulated in the within contract, these will be compensated against the unpaid amount of the loan agreed in the MUTUAL CONTRACT. 

SIXTH.- Default in payment, on any of the obligations mentioned herein, will cause LESSEE to pay LESSOR monthly interest of one
(1) per cent per month on any unpaid balance, in dollars, money from the United States of America. 
 SEVENTH.- During the
lease term, every month will be binding on LESSEE, who will have to pay the rental payment even if THE WAREHOUSE is occupied for a shorter term, even though if rental payments are received on different dates that the agreed dates, or partial
payments on account of the rent, therefore this contract is not affected at all. 
 EIGHTH.- LESSEE should not retain the rental
payment under any circumstance, he should pay the rental payment entirely on the date stipulated on this contract, renouncing to the benefits of the provisions of the Articles          of the
Civil Code in force. 
 NINTH.- LESSEE is not allowed to: 
 1.- Use the WAREHOUSE for any purpose other than for the corporation, it is forbidden to use the WAREHOUSE for religious, political or union practices or for any other purpose violating the
Nationalization Law of Properties. 
 2.- Assign, transfer, sublease, or compromise the rights acquired by this contract, with regards to the
WAREHOUSE without the written consent from LESSOR. 
 3.- To have pets or any devices that might damage the place. 

4.- Make any changes to the WAREHOUSE without prior written consent from LESSOR, any work done in the WAREHOUSE will remain for the benefit of LESSOR, on
the understanding that LESSOR shall not pay the expenses for such changes. 
 5.- To keep any inflammable substances within the WAREHOUSE,
LESSEE will be responsible for any damages caused in violation of this regulation. 
 TENTH.- LESSEE is hereby committed to
indemnify the LESSOR for any damage or loss to the WAREHOUSE, caused by negligence or fault of his family, staff, o anybody visiting the site, the LESSEE also agrees to have insurance on the WAREHOUSE throughout the period for which he remains in
possession of the WAREHOUSE, and maintain it in force against any damage, having LESSOR as beneficiary in first place, in accordance to the following: 
 1.- LESSEE hereby agrees to have, during the term of this contract, full 

			
		  	Profa. MARIA LUISA MORALES ANDRADE
		  	PERITO TRADUCTOR
	OFFICIAL CERTIFIED TRANSLATION	  	Autorizada por el Tribunal Superior de Justicia
		  	de Baja California
		  	Tel. 646-175-70-23 Cel. 179-40-16
		  	Ensenada, B.C.
		  	e-mail: marialuisamorales@hotmail.com

  

 
insurance, with 100% coverage on the WAREHOUSE and its contents, coverage for rental payments when not using the Warehouse, and for acts of god; said insurance should not be cancelled, ended or
reduced without previous written authorization from LESSOR. The amount of the insurance will be based on the annual appraisal performed by an appraiser selected by LESSOR AND LESEEE, expenses shall be paid by LESSEE, in the event of any controversy
on the designation of the appraiser, it shall be the appraiser designated by the insurance company. The Insurance Policy will cover, but not limited to, any and all risks and the following additional coverage: earthquake, cyclones, storms, floods,
and removal of rubbles (this last one with the insured amount). 
 2.- In the event THE WAREHOUSE is damaged or destroyed, at any moment during
the term of this document, LESSOR with the assistance of LESSEE will request from the insurance company the payment for the repairing, and reconstruction of the warehouse and the furniture in case of damage. 

3.- In the event the WAREHOUSE is damaged or destroyed in more than (20) twenty per cent during the last year of this contract, then, either LESSEE
or LESSOR may cancel this lease contract on the date of said damage or destruction, notifying the other party in writing within (60) sixty days subsequent to the damage or destruction. If the lease is terminated as provided in this paragraph,
then all prepaid rent and other charges paid in advance for the lease will be reimbursed to LESSEE by LESSOR, computed from the date of notification of the option that provides for this clause, provided that no charges be made against such items.

 4.- The compensation paid by the insurance will be used for repairing, restoring and reconstructing the WAREHOUSE in accordance to this
contract. 
 5.- LESSEE should obtain title Insurance for liability during the term of this lease, with full coverage for LESSEE AND LESSOR, for
any claims against bodily injuries or death, or property liability that might arise from the lease, use, occupation or maintenance of the WAREHOUSE and all the adjacent areas thereof. Insurance should be in the amount of not less than USCy $ .
                 :00 (— dollars 00/100) dollars from the United States of America, limited only and combined for injuries or death of one or more individuals
per case, or property damages. The policy should cover risks on the WAREHOUSE and its operations, independent contractors, contractual liability and should (1) designate LESSOR as an additional insured, (2) include a provision of cross
liability; (3) must contain a provision that provides for insurance to the LESSOR and will be principal, not contributing with any other insurance available to LESSOR, (4) it will provide that there will be no resource for LESSOR for any
payment of premiums or deductibles; and (5) it will provide that there will be no rights of subrogation against LESSOR for any insurance or any other person. 
 6.- On the date of occupation of the WAREHOUSE, LESSEE will give LESSOR the original of the insurance policies mentioned in this clause and a certified copy of the receipt of full payment of the annual
premium, and the renewal of the policies should be submitted within the (15) fifteen calendar days following the date when the WAREHOUSE was occupied, as well as copy of the receipt of full payment of the annual premium paid by LESSEE,
otherwise LESSOR may carry out the insurance contracts on behalf of LESSEE charging him the amount of premiums paid, same which should be reimbursed immediately. 
 ELEVENTH.- LESSOR will carry out in the WAREHOUSE all the installations for 

			
		  	Profa. MARIA LUISA MORALES ANDRADE
		  	PERITO TRADUCTOR
	OFFICIAL CERTIFIED TRANSLATION	  	Autorizada por el Tribunal Superior de Justicia
		  	de Baja California
		  	Tel. 646-175-70-23 Cel. 179-40-16
		  	Ensenada, B.C.
		  	e-mail: marialuisamorales@hotmail.com

  

 
public services required for the appropriate operation, therefore, LESSEE will pay for the connection to such services during the term of this contract, and for any fuel, water, gas, electricity
and telephone, as well as licenses and permits required for the opening and operation of the WAREHOUSE. Under request of LESSOR, LESSEE should prove that all payments for public facilities have been paid. 

TWELFTH.- THE PARTIES to this contract, hereby agree that during the term of this Contract, LESSOR has no obligations to make any repairs
other than any structural defects on the exterior walls, ceiling, floor, hidden interior plumbing, internal drainage, and foundations of the WAREHOUSE, in the event those problems were not caused by LESSEE, who agrees to make those repairs if
necessary pursuant to the provisions of Article ............. of the Civil Code. 
 LESSOR will start the repair work within the (7) seven
business days subsequent to the written notice from LESSEE, thus continuing until work is completed. 
 LESSEE will allow LESSOR and his
authorized agents the access to the WAREHOUSE at any time during business hours for any inspection on the works, on the understanding that in case LESSEE fails to meet such requirements within the first (7) seven business days subsequent to the
notification in writing from LESSOR, LESSOR may ask a third party to do such work on account of LESSEE. 
 THIRTEENTH.- It is
hereby agreed that LESSEE is committed to get and keep in force all the licenses, permits, authorizations from any authority for the operation of the WAREHOUSE, specially those permits for “Use of Land”, on the understanding that LESSEE
will be responsible to obtain such permits. In the event of negligence of LESSEE and said WAREHOUSE is closed down, either for any violation to the Laws, default on payment of taxes or any other reason, LESSOR will have the right to cancel this
contract, and all payments to be made by LESSOR, including reasonable attorney fees, or expenses from the personnel will be reimbursed to LESSOR by LESSEE, who will also pay the rental payments not paid during the time the WAREHOUSE is not used for
the reasons mentioned above. 
 FOURTEENTH.- LESSEE will have the right at all times during the term of this contract, at his
expense, to install, give maintenance and operate the signs, neon signs, posters, logos and advertisement inside and outside the WAREHOUSE, which could be removed at the end of the contract. THE PARTIES to this contract hereby agree that in case of
removal of any of such elements, Lessee will repair the damage, so that the WAREHOUSE may always look in excellent conditions. It is clearly understood that any brand name or trade mark used at any time or placed on the leased property by LESSEE,
will be exclusively of his own property and LESSOR under no circumstance will ever have a right to use said brand name or trade mark, except prior written authorization from LESSEE. 
 The installation of said signs, neon signs, posters, logos or advertisement, should meet the legal regulations, LESSEE should obtain the necessary licenses, permits and authorizations. 

THE PARTIES to this contract agree that nobody will use the exterior walls or the ceiling of the WAREHOUSE for any purpose whatsoever. 

FIFTEENTH.- LESSOR will demand the cancellation of this contract for any of the following reasons: 

			
		  	Profa. MARIA LUISA MORALES ANDRADE
		  	PERITO TRADUCTOR
	OFFICIAL CERTIFIED TRANSLATION	  	Autorizada por el Tribunal Superior de Justicia
		  	de Baja California
		  	Tel. 646-175-70-23     Cel. 179-40-16
		  	Ensenada, B.C.
		  	e-mail: marialuisamorales@hotmail.com

  

 1.- Default in rental payment, or payment of taxes on time. 

2.- If LESSEE transfers, assigns or subleases part of the WAREHOUSE, or the rights he is hereby acquiring with regards to this contract, without a
written consent from LESSOR. In case LESSOR authorizes a sublease, LESSEE will continue being responsible in compliance with this contract, as well as for any damage caused by the sub lessor. 
 3.- Failure to maintain current at all times the insurance policies as agreed in this contract. 

4.- Selling the WAREHOUSE. 
 5.- Intervention,
and closing down of the WAREHOUSE for any cause imputable to LESSEE. 
 6.- The noncompliance to any of the obligations LESSEE assumes in this
contract. 
 SIXTEENTH.- During the term of this contract, or in its case, the extensions of this Lease Contract, LESSEE will have
the preferential right to acquire the leased property. 
 SEVENTEENTH.- In case LESSOR decides to sell the WAREHOUSE, LESSOR
should notify LESSEE his offer and conditions. LESSEE will have a term of (30) thirty days from the date notification is received, to execute his right of purchase. At the end of said term, if LESSEE has not exercised his right of purchase,
then LESEE will have a term of (120) one hundred and twenty days from the expiration date of said term to transfer the property to a third party without any favorable conditions previously presented to LESSEE, on the understanding that in case
this term of (120) one hundred and twenty days is over, and the transfer has not been executed by LESSEE in favor of any third party, then such transfer will be subject to a new right of purchase, under the stated terms. 

EIGHTEENTH.- The contracting parties hereby agree that in case of lawsuit, LESSOR, in addition to having the right to demand the
conventional penalties stated in this contract, may request the confiscation of property and goods, on the understanding that: 
 1.- LESSEE
declares that from now on, that all the goods and assets placed inside the WAREHOUSE, are and will be exclusively of his own property, to be given to the person designated by LESSOR as receiver. 

2.- If LESSEE is legally sued by LESSOR, all the expenses and attorney’s fees shall be reimbursed to LESSOR. 

3.- If LESSEE continues using the WAREHOUSE after being sued in court, LESSEE agrees to pay LESSOR as penalty clause an amount equal to 150% of the total
amount of the rent agreed without prejudice to the obligation undertaken in the preceding paragraph. 

			
		  	Profa. MARIA LUISA MORALES ANDRADE
		  	PERITO TRADUCTOR
	OFFICIAL CERTIFIED TRANSLATION	  	Autorizada por el Tribunal Superior de Justicia
		  	de Baja California
		  	Tel. 646-175-70-23     Cel. 179-40-16
		  	Ensenada, B.C.
		  	e-mail: marialuisamorales@hotmail.com

  

 4.- LESSEE will not take away his goods and assets from the WAREHOUSE, if he has any debt with LESSOR,
either because of rent or for any other reason. 
 NINETEENTH.- It is expressly agreed that LESSEE, in accordance to the
provisions of Article          of the Civil Code in force, states to have his domicile for any legal effect of this contract, at the WAREHOUSE, renouncing to any other jurisdiction, and in case of a
lawsuit, all notifications will be addressed to THE WAREHOUSE, waiving the rights to the provisions of Article          of the Civil Code. 
 TWENTIETH.- THE PARTIES hereby agree to be governed by the Courts of Ensenada, Baja California, for the interpretation and compliance with the provisions of this contract, waiving their own
present or future jurisdiction. 
  

					
	“LESSOR”	 		  	“LESSEE”
	BERCALI,	 		  	INSTRUMENTOS MUSICALES
	S. A. DE C.V.	 		  	FENDER, S. A. DE C. V.
			
	/s/ Joaquin Alves Iglesias	 		  	/s/ Sr. Omar Bashar Darcazalli
	Joaquin Alves Iglesias	 		  	Sr. Omar Bashar Darcazalli
	 [ILLEGIBLE]
 Ing. Joaquin Alves Iglesias
 Proxy
	 		  	 Mr. Omar Bashar Darcazallie

Sole Administrator

 WITNESSES: 
  

	
	
	/s/ L.A.E. Margarita Ruiz de Ramirez
	L.A.E. Margarita Ruiz de RamirezLease Agreement, dated as of January 3, 2011

 Exhibit 10.32 
 LEASE AGREEMENT SIGNED BY, “BERCALI , SA DE CV, HEREINAFTER NAMED “BERCALI”, REPRESENTED BY HIS LEGAL AGENT MR. JERONIMO BERTRAN PASSANI, AND , “INSTRUMENTOS MUSICALES FENDER , SA
DE CV, HEREINAFTER NAMED:” FENDER”, REPRESENTED BY HIS LEGAL AGENT MR. SERGIO ESTEBAN VILLANUEVA RODRIGUEZ IN ACCORDANCE WITH THE BACKGROUND, THE STATEMENTS AND CLAUSES HEREIN STATED) 

BACKGROUND: 
 I. No other
modifications, except as otherwise provided herein all other terms and provisions of the original Lease shall remain in full force and effect. FENDER and BERCALI (hereinafter and collectively named “PARTIES”) signed on January 2, 2004
lease on the property (hereinafter and collectively named “WAREHOUSES” and individually, “THE WAREHOUSE”) identified by each of THE PARTIES as follows: 

 

					
	Location	  	Monthly current
Rent*	 
	 Calle Huerta # 455 Surface 10,000.0 m2
	  	 	15,010.00	  

 having agreed that the expiration of that contract would be on January 2nd, 2011. 

(* = Dollars of the United States of America) 
 STATEMENTS 
 A. FENDER states: 

A.1. Been constituted under Mexican law on the 6th day of the month of May of 1987, as recorded in deed N ° 47,733, volume 533- granted before Mr. Carlos
Mendoza Dominguez, Adjoined Notary Public to the Notary Public Number Three of the city of Ensenada, Baja California, of which title holder to said Notary is Mr. Alfredo Gonzalez Corral, which was duly entered in the Public. Registry of Property and
Commerce of the City of Ensenada, Baja California, under entry number 3,128, pages 282-283, Volume XV, Commerce Section, on June 19, 1987, and that its representative has sufficient power to do so. 

A.2 That its representative has sufficient authority to the signing of this contract, as stated in the Deed number 63,080, volume 2,496, dated
September 15, 2006, granted before Ms. Elsa Marfa Novoa Foglio, Adjoined Notary Public to the Notary Public Number Eight of the city of Tijuana, Baja California, of which title holder to said Notary is Mr. Ricardo del Monte Nunez.

 B. BERCALI States: 
 B.I That is a company incorporated under Mexican law, as recorded in Deed No 27,461 Volume 5817 dated July 11th 2000 granted before Lic Angel Saad Said Notary Public No. 4 of Ensenada, Baja California which was duly recorded
in the Public Registry of Property and Commerce of Ensenada, Baja California, under entry number 5077420 V. 226593 , Commerce Section, on September 18th 2000 

 B.2 That its representative has sufficient authority to the signing of this contract, as
stated in the Deed No 69,972 Volume 1,152 dated December 28th, 2010 granted before the Notary Public N ° 4 Ensenada, Baja California, Mr. Angel Saad Said, which was duly recorded in the Public Registry of Property and Commerce of Ensenada, Baja California
under electronic file No 12666*3 dated January 3th 2011. 
 B.3. Be his desire to continue to rent the Warehouse to FENDER 

B.4. That is carrying out a financial restructuring of the company, and is planning shortly to carry out the transfer of the usufruct of all or parts of
buildings, that make THE WAREHOUSES transmitting such rights to Grupo Inmobiliario Calibert S de R.L. de CV; for the purposes of Article 2321 Civil Code of the State of Baja California, under the assumption that he could give FENDER right to be
preferred in such disposition, this document contains a record of the notice of the respondent is to be done for legal purposes as appropriate. 
 CLAUSES 
 FIRST. Goods covered by this lease: 

The good owned by BERCALI is THE WAREHOUSE subject of the lease that the act is agreed, are identified in the sketch added to this document duly signed.

 WAREHOUSE: Location Calle Huerta # 455 Surface 10,000.0 m2 
 SECOND
Lease Amount: 
 The parties agree to set the monthly rent amount for the first year at $ 15,010.00 (Fifteen thousand and ten dollars
(00/100) or its equivalent in Mexican Pesos at the official rate, plus the corresponding Value Added Tax, 
 THIRD: Assets and property under
lease should be used as follows: 
 The PARTIES hereby agree that FENDER may use THE WAREHOUSES for industrial facilities, for storage,
manufacturing, and assembling of all FENDER products, as well as for its offices, BERCALI may cancel this Lease Contract if FENDER fails to comply with the agreement and uses the WAREHOUSES for any other purpose without prior consent from BERCALI

 FOURTH: Increase on rental price: 
 Both PARTIES agree that the monthly rental payments will increase annually according to the US inflation “CPI” and will not exceed five (5) percent. 

 Lease payments should be paid in monthly advanced payments to BERCALI or whoever represents its rights, at
the offices located on Ave. Pedro Loyola # 400, Colonia Carlos A Pacheco, in Ensenada, Baja California, the first day of each month. FENDER should refrain from retaining any monthly rental neither should request for any reduction, except in case
pursuant to the provisions of article 2294 of the Civil Code, therefore FENDER renounces to the rights granted by articles 2295, 2319, and 2364 of the Civil Code. 
 Should FENDER fail to pay three monthly rental payments, then BERCALI may rescind this Lease Contract upon 30 days prior written notice to FENDER with the conventional penalty agreed on clause eighth,
without any judicial proceeding, requesting FENDER to vacate the property, and FENDER paying all reasonable legal expenses, if any 
 FIFTH.
Current conditions of THE WAREHOUSES: 
 It is hereby stated that all THE WAREHOUSES mentioned above are in good conditions, therefore FENDER
renounces to the rights granted by articles 2286, fraction V and 2295 of the Civil Code for the State of Baja California, accepting FENDER to return said WAREHOUSES on the same condition except for the deterioration caused for its good natural use.
Otherwise FENDER will pay for the necessary repairs. It is clearly understood that BERCALI will not pay for any minor repairs. 
 All of the
WAREHOUSES meet the hygiene conditions foreseen by the lay and FENDER agrees to keep such conditions. Any problems with the drainage or anything related to the property will be paid by FENDER. 

FENDER will be liable for any damage to the WAREHOUSES, whatever the cause is, either caused by their family, workers, visitors, with exception of
natural phenomena (earthquakes, hurricanes, floods, etc.) or damages caused by BERCALI, Any problems with the drainage system or any other problem related to the property itself, will be solved and paid by FENDER, even though such damages be caused
by their use. 
 SIXTH. Modifications to THE WAREHOUSES: 
 FENDER requires written authorization from BERCALI for any necessary changes or improvements to the WAREHOUSES or to the property under lease. In the event BERCALI gives authorization to FENDER for any
changes or improvements to the WAREHOUSES, such authorization or permit should include the conditions for such changes or improvements; on the understanding that any improvements or construction, if not movable, will remain on the property in favor
of BERCALI, if so decided by BERCALI, without any compensation for FENDER. 
 In the event FENDER makes any changes on THE WAREHOUSES or makes
any improvements without written permit from BERCALI, it will be liable pursuant to the provisions of article 2315 of the Civil Code, and BERCALI will not pay for any improvements, FENDER should remove such improvements if so required by BERCALI,
repairing and paying for any damages, therefore it renounces to the benefits of articles 2297,2298 and 2321 of the Civil Code. 
 It is clearly
understood by the parties that in the event any or all the WAREHOUSES and their contents suffer any damage caused by deterioration or by any “Acts of God” and/or destruction of the property caused by natural disasters, such as hurricanes,
floods, earthquake, etc., becoming out of control from any of the contracting parties, each of them should accept any damages to their own property. 

 SEVENTH. Lease Term: 
 The lease term is for three years and will start from the 1st January 2011. 
 PARTIES agree,
that at all times FENDER may request termination of the contract, in whole, provided it has notified the other party by written notice to that effect, at least one year in advance 
 After the year of the notification referred above, in the case that Fender did not make delivery of THE WAREHOUSE in the agreed form, the parties agree that: 

1. FENDER paid as a penalty clause for the sole reason for the delay an equivalent to one month of the rent of the
cancelled warehouses. 
 2. Regardless of the specified penalty, FENDER will pay BERCALI as rent for each day
they remain occupying the warehouse, 7% (seven percent) of the monthly rent that were in effect at the time that the vacate must have occurred, and in addition will cover the damages caused to BERCALI for its breach. 

3. If BERCALI shall have to take legal action for the evacuation of the warehouses, shall be borne by FENDER all
expenses, costs or expenses that are generated with the procedure, without conforming to the official tariffs, but the real value disbursed by BERCALI. 
 4. In the case that FENDER has 2 or more months of delinquent rent payments, FENDER is not allowed to remove any equipment from the building until the debt has been paid as a form of guarantee for
payment. If FENDER is current on its rental payments FENDER will be allowed to remove machinery and equipment from the facility. 
 5. PARTIES agree that in the event that BERCALI decide to sell some or all of the warehouses, FENDER have the first option. 
 EIGHTH. Licences and permits: 
 It is hereby agreed that FENDER has the obligation to obtain
and keep effective all licenses, permits, authorizations, etc, from any authority for the legal operation of the business, especially for the “Use of Land” and “Functioning”; on the understanding that FENDER should obtain such
permits. 
 Should any of THE WAREHOUSES is legally intervened, closed or foreclosed by any authority for any cause imputable to FENDER either
for violation of the Law, nonpayment of taxes or by any other reason. FENDER will continue making monthly rental payments. In the event FENDER has to vacate the WAREHOUSE or WAREHOUSES due to foreclosure or legal closing for any cause imputable to
FENDER, it is clearly understood that this Lease Contract will become null and void even without a judicial order, besides, any payments paid by BERCALI in the achievement to obtain THE WAREHOUSE, including reasonable attorney’s fees or
payments to personnel in charge of the proceedings, will be reimbursed by FENDER, who will pay the rental payments during the time that the WAREHOUSE is not being used, paying the equivalent to three months of rental payment. 

 NINETH. Any other payments: 
 Both PARTIES agree that BERCALI will pay property taxes on THE WAREHOUSES and any other tax, contribution or cooperation of any kind on the WAREHOUSES will be paid by FENDER, especially payments for
utilities bills, such as water and electricity. 
 TENTH. Waiver of preference: 
 Attentive to what was stated in paragraph B.4 of the Declaration B of this contract to the transmission of usufruct BERCALI intends to carry to Grupo lnmobiliaria Calibert S. de R.L. de C.V. FENDER in
this act, for the purposes of Article 2321 Civil Code of the State of Baja California, under the assumption that it could assist the right to be preferred in such alienation, expresses and records for legal purposes Where appropriate, that it is not
its will to exercised that right, leaving BERCALI in absolute freedom to carry out the transfer of usufruct rights given either in one or more mutually independent events, during the term of this contract and its extensions. 

ELEVENTH. Address: 
 It is hereby agreed
that for any legal effect, the parties declare to have their domiciles as follows: FENDER: Calle Huerta N°138, Colonia Carlos A. Pacheon, Ensenada, Baja California, BERCALI: Ave. Pedro Loyola # 400 Colonia Carlos A. Pacheco, Ensenada, Baja
California, renouncing to any present or future jurisdiction, any notification will be served to this domicile. 
 TWELVETH. Courts:

 For the legal interpretation of this contract, they agree to be submitted to the courts in Ensenada, Baja California renouncing to their
jurisdiction. 
 Having read the content of this Lease Contract, the PARTIES ratify it and sign it in Ensenada, Baja California, this 3rd day of
January 2011, 
  

					
	BERCALI	 		 	FENDER
			
	BERCALI S.A de C.V.	 		 	INSTRUMENTOS MUSICALES FENDER, S.A. DE C.V.
			
	/s/ JERONIMO BERTRAN PASSANI	 		 	/s/ SERGIO ESTEBAN VILLANUEVA RODRIGUEZ
	JERONIMO BERTRAN PASSANI	 		 	SERGIO ESTEBAN VILLANUEVA RODRIGUEZ

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00200-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00200-of-00352.parquet"}]]