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EXHIBIT 10.12    
    

        [Translation of French Original] 

 
 

9077-7152 QUÉBEC INC.    
    
    AND    
    
    FOAM CREATIONS INC.    
    

LEASE

Québec, August 17, 2005 

 
 

TABLE DES MATIÈRES    
    

	1.	 	LEASE AND POSSESSION OF LEASED PREMISES	 	1
	2.	 	DURATION OF THE LEASE	 	1
	3.	 	RENT	 	1
	4.	 	USE OF LEASED PREMISES	 	2
	5.	 	TAXES	 	2
	6.	 	USE, MAINTENANCE OF LEASED PREMISES AND OPERATION FEES	 	2
	7.	 	CHANGES, REPAIRS, IMPROVEMENTS, INSTALLATIONS AND ADDITIONS	 	3
	8.	 	INSURANCE	 	4
	9.	 	ACCESS TO LEASED PREMISES	 	4
	10.	 	DAMAGES, DESTRUCTION AND EXPROPRIATION	 	4
	11.	 	POSTING	 	5
	12.	 	ASSIGNMENT AND SUB-LEASE	 	5
	13.	 	HYPOTHECS	 	5
	14.	 	DEFAULT ET RECOURSES	 	6
	15.	 	EXPIRATION OF LEASE	 	7
	16.	 	ENVIRONMENT	 	7
	17.	 	RIGHT OF FIRST REFUSAL	 	7
	18.	 	NOTICE AND DEMAND	 	8
	19.	 	MISCELLANEOUS	 	8

        LEASE intervene at Quebec, on August 17, 2005 

BETWEEN:  

        9077-7152 QUÉBEC INC., carrying out business under the corporate name of «Estpace
immobilier inc.», private law legal person, incorporated pursuant to Part 1A of the Quebec Company
Act, (R.S.Q. c. C-38), having its registered office at 6515 Boulevard Hamel, Québec, Province of Quebec, G2E 5W3, acting and represented to
the presents by Mr. Jacques Bélanger, vice president, duly authorized by virtue of a resolution of its Board of Directors, which copy is attached to the present lease; 

        (hereinafter
the "Lessor") 

AND:  

        FOAM CREATIONS INC., private law legal person, incorporated pursuant to the Canada
Business Corporations Act (R.S.C.. (1985) c. C-44), having its registered office at 1500 rue des Tanneurs. Québec, Province of Quebec,
G1N 4S8, acting and represented to the presents by Mr. Andrew Reddyhoff, duly authorized by virtue of a resolution of its Board of Directors, which copy is attached to the present lease; 

        (hereinafter
the "Tenant") 

THE PARTIES TO THE PRESENTS AGREE AS THE FOLLOWING:  

1.     LEASE AND POSSESSION OF LEASED PREMISES  

        1.1   The
Lessor leases, by the presents, to the Tenant which accepts to lease to the Lessor, the whole under reserve of the conditions, conventions and undertakings contained
in the presents, the following premises (hereinafter called "leased premises"): 

 Leased Premises  

        The Leased Premises are the factory and offices, as represented by Zone A of Schedule A, the whole representing a total surface area of 54, 408 square
foot, calculated from inside the partitions. 

        The
Leased Premises consist in located in a building located at 1500 rue des Tanneurs, Québec, Province of Quebec, G1N 4S8. 

        1.2   The
Tenant declares that it is entirely satisfied with the leased premises, under reserve of Section 16, and accepts them in their existing condition as of the
date of the presents and must take charge of the cost of all works, changes, improvements, installations or additions to the leased premises which are necessary to meet requirements. 

2.     DURATION OF THE LEASE  

        2.1   The
term of the present lease starts as of September 1st, 2005, notwithstanding the date of its signature and will terminate at midnight on
February 28, 2007, unless it is terminated earlier, according to the provisions of the presents. 

3.     RENT  

        3.1   The
Tenant pays to the Lessor, during the whole duration of the lease, the annual sum of $326,448, by equal and consecutive installments of $27,204, representing a rent
of $6/square foot, payable in advance the first day of each month of this period, the first installment being due on September 1st, 2005. 

        3.2   The
Tenant undertakes to pay the rent to the Lessor, starting from the first month of the lease, in Canadian currency, and notwithstanding any writing, use or custom to
the contrary, without any prior request to this effect and with no deduction, reduction or compensation, whatever it be. 

 

        3.3   Any
amount due by the Tenant to the Lessor, by virtue of this lease, has to be paid by the Tenant to the Lessor at the Lessor's main business place or at any other
indicated place and person by notice from the Lessor to the Tenant. 

        3.4   Any
amount due by the Tenant to the Lessor by virtue of this lease which is not paid, will be charged an interest until the date of the payment, which is equal to more
than 2% of the preferential rate of the Lessor's financial institution, in force for its commercial loans consented in Canada in Canadian dollars. 

4.     USE OF LEASED PREMISES  

        4.1   As
an essential condition of the present lease, it is agreed that the Tenant will use the leased premises for the purposes of carrying out its actual business in plastic
transformation and manufacturing. 

5.     TAXES  

        5.1   The
Tenant pays, during the whole duration of the lease, all taxes to which it is subject, directly to relevant fiscal authorities (other than those which it is bound to
pay to the Lessor by virtue of section 6 of the presents), notably, but without limitation, taxes and special charges as well as all other impositions, contributions on their due date, and will
submit the proof of said payments to the Lessor at the latest 15 days following the due date of these payments. At the expiration of the term, if applicable, the parties agree to make necessary
tax adjustments in proportion of the number of days elapsed in the last fiscal year of the term. The Tenant may contest taxes at its own expenses, other than those it is obligated to pay to the Lessor
according to the terms of section 6 of the presents, only after having received the prior written consent of the Lessor, which cannot refuse without reasonable reason. Moreover, it is agreed
that the legal advisors, for any challenge, will first be approved by the Lessor. 

        5.2   Should
there be any legislation or regulation that modify the way to collect taxes that would render the Lessor responsible of their collection at the place of the
Tenant, the latter will have to refund the Lessor, in the ten (10) days of a request, any amount claimed to the Lessor, and to hold it free of any charges or expenses that can incur following
to such a claim. 

6.     USE, MAINTENANCE OF LEASED PREMISES AND OPERATION FEES  

        6.1   The
Tenant will take charge of operation costs, whether it be property, school or municipal taxes, the surtax category 10 (business tax), snow clearing and
maintenance, proportionally with other tenants on the basis of the surface area of leased premises with the whole leased surface area of the building. 

        6.2   The
Tenant undertakes to keep and maintain the leased premises in good condition of reparation and it undertakes to use it reasonably and to do, without delay and at its
expenses, all repairs necessary to keep the leased premises in good condition of reparation and in perfect condition, except structural repairs. 

        6.3   Should
the Tenant be in default of keeping and maintaining the leased premises in good condition of reparation and in perfect condition or not conform, in a reasonable
delay, according to circumstances, to written notice that will have been given by the Lessor, the latter, as well as its officers, employees, agents, contractors and other representatives, will have
the right, on a prior notice of five (5) days, to enter the leased premises and to make, at the place of the Tenant and at its expenses, any repair or thing necessary, and these amounts will be
added to the rent payable by the Tenant, as operation costs, the whole without prejudice of other rights and recourses of the Lessor pursuant to the presents. 

2

 

        6.4   During
the term, the Lessor or its employees, representatives and agents, may, from time to time, enter the leased premises during normal business hours or, in case of
emergency, at any time, in order to examine the condition of repairs, the decoration as well as the order of the leased premises and equipment, fixtures, and present or future improvements, if
applicable. 

        6.5   Under
reserve of the provisions of section 10, it is expressly understood that any loss of enjoyment of leased premises caused by the necessity to make any
repair, replacement, maintenance or reconstruction, modification or improvement, or caused by their performance, either by the Lessor or the Tenant, whether it be to comply or not with the present
lease, cannot constitute a ground for the annulment, the termination or the cancellation of the present lease or for a suspension or reduction of rent payable pursuant to the presents, or for any
other compensation by the Tenant (except those resulting from the Lessor's negligence or fault). 

7.     CHANGES, REPAIRS, IMPROVEMENTS, INSTALLATIONS AND ADDITIONS  

        7.1   Any
improvement to leased premises will be the Tenant's responsibility and will be made by the Tenant at its own expenses and with complete exoneration of the Lessor. 

        7.2   If
the Tenant wishes to make improvements, repairs or modifications to leased premises during the leased period, it must notice the Lessor and obtain its authorization
to do so, which cannot be unduly refused. As to the improvements and modifications to leased premises that the Tenant desires to make, the Lessor may indicate to the Tenant its intention to demand
that these improvements or modifications be removed at the termination of the lease. The repairs, changes or improvements made by the Tenant are performed by an acceptable contractor for the Lessor,
but at the only expenses of the Tenant (except structural repairs), which must immediately refund to the Lessor any payment done by the latter, if applicable. The Lessor does not incur any liability
for these works and for any damage that may result of their performance. The Tenant cannot remove these repairs, changes or improvements without the Lessor's consent. 

        7.3   All
these works are performed by approved contractors by the Lessor which may not refuse its approval without reasonable reason. This approval is granted: 

           i)  Only
if the contractors accept to perform the work according to reasonable regulations and directives that the Lessor may establish for time to time, and, 

          ii)  Only
if the contractors are holding adequate insurance policies which the Lessor is reasonably satisfied with, for the works to be performed in the leased premises and
that the employees of these contractors do not cause any industrial conflict by their presence on or in the leased premises. 

        7.4   The
Tenant must, before the contractors' entrance in the leased premises, and that they start performing any work, obtain from contractors, architects and any other
person that may benefit from a legal hypothec of the builder, a waiver to such hypothec, that these persons can or could register for works or services rendered or to be rendered, provided work force
or to be provided, or for materials provided pursuant to a contract, and all these persons must consent to provide the Lessor with a waiver for all these hypothecary rights by all
sub-contractors and services providers and materials having to work in the leased premises. 

        7.5   All
modifications, repairs, improvements and installations being part of leased premises, which cannot be removed without damaging substantially the leased premises,
will become the Lessor's property and will have to be remitted by the Tenant with the leased premises upon expiration of its lease, and the Lessor will owe no compensation or indemnity to the Tenant. 

        7.6   Notwithstanding
the precedent sections, the Tenant must nevertheless remove at the termination of the lease, all repairs, improvements, additions or modifications that
the Lessor can 

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require
on which the Lessor has indicated according to section 7.2, before remitting the leased premises to the Lessor, and the Tenant must repair immediately all the damages that may have
incurred in or on the leased premises. 

8.     INSURANCE  

        8.1   The
Tenant must, at its own expenses, during the term, maintain in force insurance policies hereinafter indicated, and which terms and conditions must be acceptable for
the Lessor: 

        8.1.1 An
all risk insurance with supplementary covering, notably, fire risks, flowing of sprinklers and other protection devices against fire as well as risks of earthquake,
collapse, flood, and damages caused by water, dripping or the vapor, for the immoveable and the moveables, equipment, stock, accessories and leased improvements located inside the building and to any
property located on or in the leased premises or that are part of such premises (included the parts of any electric and plumbing mechanic system of the leased premises), in conformity to what the
Lessor may reasonably demand from time to time, up to the integral replacement value (without depreciation) in each case; and 

        8.1.2 A
general civil liability insurance policy for the operated business in or on the leased premises, or from them since their use or occupation, and providing a limit of
responsibility of at least $5,000,000.00, or according the highest limits that the Lessor may, from time to time, reasonably demand. 

        8.2   The
tenant must not make any act, do anything nor keep objects in the leased premises that may increase fire risks or increase the fire insurance premium, or any other
insurance covering the immoveable. The Tenant must respect regulations and conform to insurers' requirements of the Lessor, or any insurers association competent in the matter for all insurances
covering the immoveable or relating thereto. In no time, the Tenant may bring or keep in or on leased premises inflammable substances, except for normal purposes of its occupation of leased premises
and the kind and quantity that are allowed by the Lessor's insurance policy. 

        8.3   The
fact that the Tenant subscribes to an insurance policy required at section 8 of the present does not limit in any way whatsoever or restraint the Tenant's
responsibility pursuant to the present lease. 

        8.4   The
Tenant must, at all time, at the Lessor's request, provide it with certificates attesting the issuance and maintenance of all insurance policies required pursuant to
the presents. 

9.     ACCESS TO LEASED PREMISES  

        9.1   On
reasonable notice, the Tenant allows the Lessor or any other person designated by the latter to visit and inspect the leased premises during regular business hours.
The Lessor may also place on the leased premises postings indicating that the leased premises are for sale or for rent, and the Lessor agrees not to displace, remove, obstruct or erase these postings. 

10.   DAMAGES, DESTRUCTION AND EXPROPRIATION  

        10.1 If
damages or injuries caused by fire or any other disaster were attributable to the Tenant's fault or the negligence, its officers, agents or employees, the Tenant
will be liable for such damages or injuries and the Lessor will repair all damages at the Tenant's expenses, the whole without prejudice of other rights and recourses of the Lessor, and subrogation
rights of Lessor's insurers. 

4

 

        10.2 Under
reserve of any hypothecary creditor's rights toward the Lessor for leased premises and directives that any such creditor could give to the Lessor, in case of,
following a fire or other cause, the leased premises would be totally destructed or rendered totally or substantially unlivable: 

        10.2.1 If,
in the reasonable opinion of the Lessor, it is impossible to rebuild the building in its original condition in a six (6) month delay, the lease will
terminate on the day of the disaster, and the Tenant and the Lessor will determine together any sum due for the rent and any other sum due on the basis of the number of remaining days. 

        10.2.2 If,
in the reasonable opinion of the Lessor, it is possible to rebuild the building in its original condition within less than a six (6) month delay, the lease
will remain in force and the only liability of the Tenant as to the rent will be suspended as of the day following the disaster until the day the Tenant will be able to occupy the leased premises. 

        10.3 In
the case of an expropriation, the conviction or the taking of possession for public or quasi-public use of leased premises, in whole or in part, by any competent
authority having this power, entailing the commercial operation of the leased premises impossible, in the opinion of the Lessor, the latter may, at its choice, and must, if the leased premises are no
longer available for occupation by the Tenant, terminate the lease as of the date of the taking of possession by the competent authority in giving a written notice to the Tenant at any time before
this date, the whole without any liability of the Lessor toward the Tenant. The Tenant keeps nevertheless all its rights and recourses against the expropriator. 

11.   POSTING  

        11.1 The
Tenant may set up an identification sign on the gatepost of the Lessor designed for this purpose, provided that the prior written consent of the Lessor is obtained
concerning the place where such a sign will be located on the gatepost, and subject to prior approval of the Lessor as to the drawing, the content and the way it will be erected, and subject to
compliance with municipal by-laws. The Tenant will compensate the Lessor and will hold it free of any loss or damage resulting from the installation or the use of such sign. At the
termination of the lease, the Tenant will remove all such signs and repair damages caused by such signs or by their removal. 

12.   ASSIGNMENT AND SUB-LEASE  

        12.1 The
Tenant has the right to sub-lease the leased premises or to assign its rights in the present lease with the prior written consent of the Lessor which
will not be refused unreasonably. Notwithstanding such a sub-lease or assignment, the Tenant remains jointly and severally liable with the sub-lessee or assignee for the
performance of all the sections and conditions of the present lease for the residual part of the term or the renewal. 

13.   HYPOTHECS  

        13.1 The
Tenant will not make any action, or omit to commit an action reasonably required, nor require that any act or gesture be done that will have the effect to put the
Lessor or its eligible party in default by virtue of any agreement entered into between the Lessor and any loaner of the Lessor benefiting from an hypothec on the immoveable where the leased premises
are located, or any other guarantee on said immoveable. 

        13.2 The
Tenant acknowledges that the immoveable is affected of an hypothec and accepts the presents as a valid signification of the lease transportation and of any rent
relating to the lease in favor of the loaner pursuant to the Deed of Hypothec. Nevertheless, the Tenant will continue to pay the rent to the Lessor, as prescribed in the present lease until the Tenant
is duly noticed by the loaner to pay it the rent or to any other person it designates. 

5

 

        13.3 The
Tenant accepts to comply with all directives of the hypothecary loaner of the Lessor, concerning the payment of the rent and other obligations of the Tenant by
virtue of this lease. 

        13.4 In
order to guarantee the performance of all and each of its obligations by virtue of the presents, the Lessor waives a moveable hypothec without delivery of second
rank for a value which equals the rent and the operation costs for the first year of the lease. The Tenant undertakes to sign any document and to behave and pose any action, in order to give full
effect to the presents. 

14.   DEFAULT ET RECOURSES  

        14.1 The
Tenant is in default by virtue of the presents in each of the following cases: 

        14.1.1 If
the Tenant does not pay on time any due and exigible amount by virtue of the presents; 

        14.1.2 If
the Tenant becomes insolvent or assigns generally its properties for the benefit of its creditors; if the Tenant becomes bankrupt, is liquidated or takes advantage
of any legislation pertaining to insolvency or bankruptcy, or attempts to do so; if a receiver, trustee, manager, fiduciary or a guardian, is nominated to properties of the Tenant or for any part of
them; 

        14.1.3 If
the properties of the Tenant are transferred, transmitted or otherwise given to any other person or a corporation through application of the law, of if there is a
change (other than a devolution following death) in the shareholders of the Tenant, and if after such change, the holding of more than 50% of the votes attached to shares of the capital stock of the
Tenant belongs to other persons then those who detain them presently, except if the Lessor has previously consented to such a change, which consent cannot be refused neither retained unduly; 

        14.1.4 If
the Tenant is in default to respect any of its other undertakings or any other obligations or conditions of the lease; 

        14.1.5 If
during the term, properties or moveable effects located on or in the leased premises are distressed, garnished by any Tenant's creditor, after a judgment rendered
against the Tenant, or if a final process writ is issued against the Tenant's properties or against the present lease unless the Tenant contests in good faith and in the delays prescribed by law, said
process or seizure (as much as the Tenant provides the Lessor with a banking guarantee letter or a guarantee issued by a suretyship company acceptable for the Lessor, guaranteeing the payment of the
claimed amount); or 

        14.1.6 If
the Tenant is in default to carry out its business in the leased premises on an uninterrupted way or if it does not occupy the leased premises. 

        14.2 Under
reserve of the above-mentioned defaults provided for in sub-paragraphs 15.1.2 where the cancellation of the lease is automatic, should there be any
default from the Tenant, as defined at section 15, the Lessor may give the Tenant a written notice of its intention to terminate the lease and the duration of the lease will terminate as of
i) the 10th day following the reception of this notice in the case of violation of any provisions relating to the payment of a sum of money pursuant to this lease or
ii) the 15th day following the reception of said notice in any other case of default, this cancellation having the same effect as if it would be the fixed date for expiration of
the duration of the lease, the whole without necessity of any legal procedure, under reserve, in all cases, of the obligation of the Tenant to pay to the Lessor all the amounts that are overdue and
all damages resulting from its default. 

        14.3 In
all cases, the Tenant may, but according to the delays provided for in the precedent paragraph, remedy to its default, after the notice has been given by the Lessor. 

6

 

        14.4 If
there a cancellation of the lease pursuant to the provisions of the present section 15, the Tenant must remit immediately the leased premises to the Lessor
and the latter, its mandatories and employees may immediately or at any time after, enter the leased premises and evict the Tenant as well as any other person or property therein. 

        14.5 No
tolerance or omission of either party toward the other relating to a default of the other party concerning obligations provided for in the presents, can be
considered as a waiver to the rights of the Lessor or the Tenant pursuant to the present, concerning this default or any subsequent default, and it does not affect nor modify, of any way whatsoever,
the rights of the Lessor or of the Tenant in the present relating to this subsequent default; moreover, no waiver can be inferred from an action or an omission of the Lessor or the Tenant, except if
such waiver is expressed in writing. 

        14.6 The
mention in the present lease of a particular recourse of a party relating to a default of the other party does not prevent this party from using another recourse
relating to this default, whether it be in conformity to the present lease or pursuant to the law. No recourse excludes another recourse, neither depends on another recourse, and any party will be
able, from time to time, to exercise its recourse independently or jointly, these recourses being cumulative and non-alternative. 

15.   EXPIRATION OF LEASE  

        15.1 The
present lease will terminate as of right and without prior notice at the end of the duration of the present lease and the occupation of the leased premises after
this date by the Tenant will not have the effect to prorogate the lease nor renew the lease for any period of time by tacit renewal or otherwise. During the whole duration of the occupation after the
expiration of the lease, the minimum rent applicable will be a monthly minimum rent of 50% higher than the last payable minimum rent (calculated on a monthly basis) pursuing to the lease, and the
other conditions of the lease will remain unchanged. 

        The
Lessor will be entitled, without prior notice to the Tenant and without any legal recourse, to take possession of the premises, change locks, warehouse, at the Tenant's expenses, the
properties which will have been left in the leased premises. 

16.   ENVIRONMENT  

        The Lessor guarantees to the Tenant that the immoveable is and will be in compliance, at all times, with laws and regulations, orders in council, codes,
directives, norms, orders of any federal, provincial and municipal authorities having jurisdiction on environmental-related matters. 

        The
Tenant is liable for the pollution emanating from its operations and the Lessor will remain liable of all past pollutions, except those of the Tenant. 

17.   RIGHT OF FIRST REFUSAL  

        The Tenant will have a right of first refusal during the period of the present lease, any period of renewal and any period of occupation authorized after the
expiration of the lease for the adjoining area of the leased premises comprising approximately 23,216 square feet of rental area, being Zone B of Schedule A (additional area). 

        If
the Lessor receives from a third person a serious leasing offer for a lease which it is prepared to accept for the additional area, then the Lessor, before reaching a leasing
transaction with the third person, will have to offer to the Tenant, in writing, to lease at the additional area. The leasing terms and conditions for the additional area will be the same as those
stipulated in the present lease. 

        The
Tenant will have to notice the Lessor in writing if it decides to exercise or not its right of first refusal in the five (5) days following the reception of the Lessor's
offer. If the Tenant decides to lease 

7

 

the
additional area, the parties will sign an amendment to the present lease in the 30 days following the notice to the Tenant. If the Tenant decides not to exercise its right or neglects to
respond to the Lessor in the prescribed delay, the Lessor will be entitled to accept the third person's offer. The right of first refusal conferred upon the Tenant will nevertheless continue to have
full effect with regards to the whole or a part of the additional area available for the leasing. 

18.   NOTICE AND DEMAND  

        18.1 Any
notice that has to be given in writing will be considered legally given if it is delivered personally to the recipient or sent by certified mail, or transmitted by
electronic means (in such a case any notice electronically transmitted will have to be confirmed in writing, sent by certified mail or served personally), to the following addresses: 

        18.1.1 in
the case of a notice intended for the Lessor, as follows: 

9077-7152 QUÉBEC INC.

6515 boul. Hamel

Québec, Québec

G2E 5W3  

To the attention of: Mr. Jacques Bélanger 

        18.1.2 in
the case of a notice intended for the Tenant, as follows: 

Foam Créations

1500 rue des Tanneurs

Québec, Québec

G1N 4S8  

To the attention of: Mr. Andrew Reddyhoff 

19.   MISCELLANEOUS  

        19.1 This
lease will bind the successors and eligible party of the Lessor as well as those of the Tenant. 

        19.2 The
present lease contains all undertakings and obligations and reciprocal obligations of the parties concerning the leasing of leased premises and cancels, for all
legal purposes, any representations, negotiations or prior agreements, of any nature whatsoever. 

        19.3 The
Lessor will not be liable of any default to respect the obligations by virtue of the presents of for any damage or loss caused to the Tenant, if this default,
damage or loss is caused by an Act of God, a force majeure, or by circumstance or fact attributable to the Tenant or any emergency or cause out of the
Lessor's control. 

        19.4 This
lease will have to be construed according to the laws of the Province of Quebec. 

        19.5 Under
reserve of any provision of this lease stipulating expressly the contrary, any amount payable by the Tenant to the Lessor by virtue of the lease, except the rent,
will constitute an additional rent et will be recoverable as such. 

        19.6 If,
for any other reason, any provision, obligation or condition of the present lease or its application to any person, business, corporation or circumstance is, in any
measure, deemed to be or becomes invalid, inapplicable or illegal, then this provision, obligation or condition is deemed to be independent from the remaining part of the present lease and divisible
from the latter. Its invalidity, inapplicability or illegality will not affect nor diminish, invalidate the remaining part of the present lease or any other part of the latter and said remaining part
of the present lease that will not have 

8

 

been
affected or invalidated, will continue to be applicable and enforceable in the greater measure permitted by law against any person, business or corporation or at any circumstance other than those
according to which it will be deemed to be or to have become invalid, inapplicable or illegal. 

        19.7 The
headings, sub-titles, section numbers, paragraph numbers, sub-paragraph numbers as well as the table of contents of the present lease are
inserted only for reference purposes and, in no way, they will definite, limit, construe or describe the scope and the intention of the parties to the present lease, and do not affect the present
lease. 

        19.8 Les
parties aux présentes reconnaissent et déclarent que la présente entente a été
rédigée dans la langue française à leur demande expresse; The parties hereto acknowledge that this Agreement has been drawn up in French at
their express and specific request. 

        IN WITNESS THEREOF, the parties have signed the present lease at the place and at the date at first indicated. 

	LESSOR	 	 
	

By:	

/s/  JACQUES BÉLANGER      
	
 	

 
	

    	

 	
 	

 
	

TENANT	
 	

 
	

By:	

/s/  ANDREW REDDYHOFF      
	
 	

 

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EXHIBIT 10.12

9077-7152 QUÉBEC INC. AND FOAM CREATIONS INC.

TABLE DES MATIÈRESQuickLinks
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EXHIBIT 10.13    
    

        [Translation of Spanish Original] 

        LEASE
AGREEMENT ENTERED INTO BY AND BETWEEN JOSE PABLO HERNANDEZ GONZALEZ, ON HIS ON RIGHT AND WHO WILL HEREAFTER BE DEFINED AS THE  "THE LESSOR", AND THE
MERCANTILE ENTITY NAMED CROCS MÉXICO, S. DE R.L. DE C.V.
REPRESENTED HEREIN BY ITS LEGAL REPRESENTATIVE JOSE ANTONIO AGUIRRE MARQUEZ, WHO WILL HEREAFTER BE DEFINED AS "THE
LESSEE", AGREEMENT FORMALIZED ACCORDING TO THE FOLLOWING RECITALS AND CLAUSES: 

 
 

RECITALS    
    

        I.—"THE LESSOR" declares: 

        That
it is the lawful owner of the following real estate property: 

        Industrial
building located in Privada Emiliano Zapata, Primer Sector, number 204 two hundred four, zona centro, C.P. 36400 in the city of Purísima del
Rincón, Guanajuato having an area of 1,726.61 squared meters and a constructed area of 1,383.36 squared meters, being described in the attached blue prints which duly signed by the
parties is a part hereto. 

        Said
building includes electric wiring and an electric transformer. 

        Property and Registry Backround.—Lessor is owner of the aforementioned building as evidenced with the first official
transcript of the following public deed, which evidences an area greater than that which is the purpose of this Agreement as stated in the prior sections. 

        Public
Deed Number 8,417 dated as of May 5, 1998, granted before Mr. Nestor Raúl Luna Hernández, Notary Public number 5 of this city and its
judicial district, registered before the Public Registry of
Commerce of this city, under number 494, volume II, first book of property, domain section, on July 6 1998. 

        II.—"The Lessee" declares through its legal representative, that it is a company duly incorporated in accordance with the laws
of its country and that its corporate purpose grants the possibility to execute this Agreement, as evidenced in certified copy of Public Deed Number 74,424 Seventy-four thousand four
hundred twenty-four, dated as of April 22, 2005 two thousand five, granted before Mr. Jorge Villa Flores, Notary Public Number 125 one hundred twenty-five,
associated to Mr. Jaime Martínez Gallardo, Notary Public Number 24 twenty-four, both residing and in exercise in the city of Guadalajara, Jalisco, executing upon the
the latter's Notary's Register, which contains the legal incorporation of Crocs México S. de R.L. de C.V. and the granting of a General Power for Administration Acts to
José Antonio Aguirre Márquez, authorities which have not been modified, revoked or limited in any way. Said document still is in registration process before the Public
Registry of Commerce as it was recently executed. 

        III.—"The Lessee" declares that it agrees in leasing the Industrial Building
described in the first recital of this Agreement and to individually return it pursuant to that stated in this Agreement. 

        IV.—Therefore, parties agree upon the following: 

 
 

CLAUSES    
    

        FIRST.—"The Lessor" agrees to lease to "The Lessee"
the building described in the first recital and the latter accepts its use and quiet enjoyment pursuant to articles 1899, 1900, 1908 and the other corresponding articles of the Civil Code in effect
for the state of Guanajuato and those correlative of the Federal and the Federal Civil Code and pursuant to the terms established hereunder. 

        SECOND.—"The Lessee" is bound to use the building purpose of this Agreement only as an industrial building to  produce footwear and to sell footwear and materials for the footwear
industry. 

Any
failure to comply with this shall be cause of termination and the leased building shall be immediately returned to "The Lessor". 

        THIRD.—This Agreement shall have a term of 2 two years compulsory for both
parties beginning on May 1 first, 2005 two thousand five ending precisely on May 1 first, 2007 two thousand seven, subject to an extension
for 5 five more years and renewable each year, therefore "The Lessee" shall return the building purpose of this Lease Agreement to "The Lessor" on the expiration date of this Agreement with no need of
prior notice, request or court resolution. 

        FOURTH.—"The Lessee" is bound to pay to "The Lessor" at Lessor's address
described hereunder, as monthly rent installments, the amount of U.S.$2,000.00 (two thousand dollars, lawful currency of the United States of America)
plus value added tax which shall be paid in advance during the 1 first day of each month starting on May 1, 2005 two
thousand five. Any failure to timely comply with rent payments will result in the right of "The Lessor" to charge  "The Lessee" a
conventional penalty equivalent to a 3% three percent of the monthly rent due or the fraction of the month due not withstanding other
penalties which are established hereunder. In case the payment date were to be non-working, the payment shall be done in the preceding working day. 

        Rent Increase.—Rent will increase annually in an amount equivalent to 5% five percent above the amount paid on each
anniversary date. 

        "The Lessor" shall not retain monthly installments under any judicial or extra judicial title. 

        FIFTH.—"The Lessee" shall deliver the leased building to "The Lessor" in the
same good conditions as when it was received in lease and with no pending payments regarding services such as water, electricity, telephone or any other which is engaged. Therefore at the returning of
the leased building "The Lessee" will be held as responsible for any defects or defaults that the building may have, regardless if it were  "The Lessee's"
fault or not. Any failure of Lessee to comply with the aforementioned will cause "The
Lessee" to indemnify "The Lessor", "The Lessee" shall also indemnify "The
Lessor" in the event of total or partial destruction of the leased building attributable or due to carelessness or fault of "The
Lessee". 

        SIXTH.—"The Lessee" shall not sublease or assign in any way to a third person the leased building, unless a written express
authorization of "The Lessor" exists. 

        SEVENTH.—Any deterioration and expenses derived during the use of the leased building and costs derived as a consequence of
the same will be at "The Lessee's" responsibility and expense, improvements made by "The Lessee" to the
leased building during its use, will remain, at the termination of the Agreement in benefit the leased building, having "The Lessee" no authority to
demand to "The Lessor" any indemnification regarding this. 

        EIGHTH.—"The Lessee" will hold "The Lessor" harmless of indemnification in the
event that any damages could be caused to "The Lessee" for any default arisen during the use of the leased
building, therefore "The Lessor" will not be responsible for the damages caused by any defect arisen during the use of the leased building. 

        NINTH.—Expenses related to maintenance and engagement of services such as electricity, water, telephone, gas or any other
requested will be bore by "The Lessee". Moreover, installations required by the corresponding authorities and the compliance with the agreements in
respect, will also be at "The Lessee's" expense and responsibility, such agreements will also remain in benefit of the leased buildings at the
termination of the Agreement. 

        TENTH.—Lessor assures that the land use of the facilities has been authorized to carry out such activities as those stated in
this Agreement, therefore Lessor is responsible before environmental authorities for any related fines. 

        ELEVENTH.—Parties designate the following addresses for this Agreement: 

	A)
	"The Lessor".—Bulevard Josefa Ortiz de Domínguez number 111 one hundred eleven, Sur, San Francisco del
Rincón, Guanajuato. 

	B)
	"The Lessee".—Privada Emiliano Zapata No. 204, primer sector, zona centro, C.P. 36400, Purísima del
Rincón, Guanajuato. 

        Such
addresses are also designated for any judicial execution procedure and its derived court actions. 

        TWELFTH.—Failure to comply with any of the terms stated in this Agreement grants "The
Lessor" the right to terminate this Agreement at any time pursuant to the terms established in Guanajuato's Civil Code. 

        THIRTEENTH.—For the interpretation and compliance of any controversy derived from the execution this Agreement Parties agree
that they shall be solved before the Courts of San Francisco
del Rincón, Guanajuato, therefore, parties waive their right to any other jurisdiction that could be applicable as a consequence of present or future addresses. 

        Having
read and aware of the content and legal consequences, the Parties sign this Agreement on May, 1 first, 2005 two thousand five in San Francisco del Rincón,
Guanajuato. 

	"The Lessor"	 	"The Lessee"
	
/s/ Jose Pablo Hernandez Gonzalez
	
 	

/s/ Jose Antonio Aguirre Marquez

	JOSE PABLO HERNANDEZ GONZALEZ	 	CROCS MEXICO S. DE R.L. DE C.V.

THROUGH ITS LEGAL REPRESENTATIVE

JOSE ANTONIO AGUIRRE MARQUEZ
	

(Ratification before Notary Public number 16 of San Francisco del Rincón)

  

        MODIFYING AGREEMENT TO THE LEASE AGREEMENT ENTERED INTO ON ONE SIDE AND BY HIS OWN RIGHT MR. JOSE PABLO HERNÁNDEZ GONZALEZ (HEREINAFTER REFERRED TO AS "LESSOR") AND ON THE
OTHER SIDE THE ENTITY CROCS MEXICO, S. DE R.L. DE C.V. REPRESENTED HEREIN BY MR. JOSE ANTONIO AGUIRRE MARQUEZ (HEREINAFTER REFERRED TO AS "LESSEE"), WHICH IS SUBJECTED TO THE FOLLOWING RECITALS AND
CLAUSES: 

 
 

RECITALS    
    

Both parties declare.—  

        a)    That
they acknowledge each other's legal capacity to appear to the execution of this agreement. 

        b)    That
they entered into a Lease Agreement (hereinafter the "Lease Agreement") dated May 1, 2005, with respect to the industrial building located at Privada Emiliano
Zapata, Number 204, Downtown Area, C.P. 36400, in the city of Purísima del Rincón, Guanajuato, which agreement remains in effect in all of its terms. 

        c)     That
they desire to execute and hereby execute this Modifying Agreement, with respect to the Lease Agreement in the terms and conditions set forth herein. 

 
 

CLAUSES    
    

        FIRST.—In the terms of this Modifying Agreement, the parties agree to incorporate clause Fourteenth to
the Lease Agreement, as it is drafted in the following clause. The parties herein ratify the contents of the remaining recitals and clauses, which remain in full force and effect without any
modification. Therefore, this Amendment will not be considered as a novation (novación) with respect to the obligations acquired by the
parties in the Lease Agreement. 

        SECOND.—Clause Fourteenth shall read as follows: 

"FOURTEENTH.—"LESSOR"
declares that up to this date the building subject matter of this Lease Agreement is free of any type of pollution or hazardous and non-hazardous wastes,
for which the same is in full compliance with the applicable environmental laws and Mexican Official Standards. 

Therefore,
"LESSOR" shall be the only one responsible for any breach to the environmental laws, which occurred before the date of execution of this Lease Agreement and, consequently, "LESSOR" commits
to indemnify and keep "LESSEE" free of any responsibility, as well as to defend it at its own cost from any lawsuit, complaint, sanction, proceeding or claim from any authority or third party derived
from the breach to any environmental law. 

        THIRD.—As provided in Clause Thirteenth of the Lease Agreement, in case of any controversy, conflict or claim based in the
interpretation or breach of this modifying agreement, the parties expressly submit their selves to the laws and courts of the city of San Francisco del Rincon, Guanajuato, waiving to any other venue
that it may correspond due to their present or future domiciles or for any other reason. 

1

 

        Having
been read this agreement and fully aware the parties of its contents and legal scope, it is signed in counterpart on this    day of August 2005. 

	LESSOR	 	LESSEE
	
/s/ Jose Pablo Hernandez Gonzalez
	
 	

/s/ Jose Antonio Aguirre Marquez

	MR. JOSÉ PABLO HERNÁNDEZ GONZALEZ.	 	CROCS MÉXICO, S. DE R.L. DE C.V.

Represented by Mr. José Antonio Aguirre Márquez.
	

/s/ [illegible]
	
 	

/s/ [illegible]

	Name:	 	Name:
	WITNESS	 	WITNESS
 

2

QuickLinks

EXHIBIT 10.13

RECITALS

CLAUSES

RECITALS

CLAUSES

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