THIS LEASE (“Lease”) is made as of [MONTH] [DAY], [YEAR] (“Effective Date”) by and between [LANDLORD], a [STATE] [TYPE OF CORPORATE ENTITY], (the “Landlord”) and [NAME] (the “Tenant”).
Landlord and Tenant agree as follows:
1. BASIC LEASE INFORMATION AND DEFINITIONS. Each reference in this Lease to information and definitions contained in this Section 1 and each use of the terms capitalized and defined in this Section shall be deemed to refer to, and shall have the respective meanings set forth in this Section.
Physical Street Address: _____________________________
Suite No.: _____________________________
City, State, Zip: _____________________________
Approx. Square Footage: _____________________________
B. Commencement Date: _____________________________
C. Expiration Date: _____________________________
D: Lease Term: __________ Months, beginning on
the Commencement Date and
ending on the Expiration Date.
E: Base Rent: Per rent schedule in Section 4
F. Security Deposit: $_______, paid simultaneously with
the execution of this Lease which
shall be held by Landlord as security
as set forth in Section 6 below.
2. GRANTING CLAUSE. Subject to the terms and conditions hereof, Landlord hereby leases the Premises to Tenant, and Tenant hereby rents from Landlord, for the Lease Term, subject to all easements and rights appurtenant thereof. For reference, a depiction of the Premises is hereby attached as Exhibit “A”.
3. LEASE TERM. The Lease Term shall be for a period of [NUMBER] months, starting on the Commencement Date and ending on the Expiration Date as outlined in Section 1 above. If Tenant has not vacated the premises by the Expiration Date and Landlord consents, the Lease shall automatically renew on a month-to-month basis on all of the same terms (except the Lease Term will be extended), until one party gives written notice of non-renewal to the other at least thirty (30) days in advance.
4. BASE RENT. Tenant shall pay to Landlord during the Lease Term, without any deduction or set-off whatsoever and without demand, rent payable in advance according to the following schedule:
|Period||Rate Per Annum Per Rentable Square Foot of Leased Premises||Base Rent Per Month|
|Rent Commencement Date through Month 12|
|Month 13 through Month 24|
|Month 25 through Month 36|
|Month 37 through Month 48|
a. Operating Costs: In addition, Tenant shall pay to Landlord, without any deductions or set-off whatsoever and without demand, charges for Common Area Maintenance (“CAM”), real estate taxes (“Taxes”), property insurance (“Insurance”), and any utilities serving the Leased Premises that are not separately metered and not exclusively serving the Leased Premises (“Shared Utilities”). The CAM, Taxes, Insurance and Shared Utilities are together referred to as the “Operating Costs” and shall be paid each month. Lessee’s [YEAR] share of Operating Expenses is estimated at $[NUMBER] per share foot per annum or $[NUMBER] per month. Within sixty (60) days after the end of the first calendar year in which the Lease Term commences and each succeeding calendar year during the Lease Term, the Landlord shall compute the actual Operating Costs for such calendar year and shall allocate to Tenant its proportionate share, which shall be computed by multiplying the actual Operating Costs for the period then being billed by a fraction, the numerator of which is the square footage of the Leased Premises and the denominator of which is the total square footage of the Shopping Center (“Lessee’s Share”). Currently, Tenant’s Share is estimated to be [NUMBER]%. Upon reasonable notice, Landlord shall make available for Tenant’s inspection Landlord’s records relating to Operating Costs for the preceding calendar year.
b. Base Rent and all other charges due from Tenant to Landlord under this Lease shall be referred to as “Rent.” Rent shall be due in advance on each monthly anniversary of the Commencement Date (“Payment Due Date”). For purposes of clarification, if the Commencement Date was January 7th, the Payment Due Date would be the 7th day of each subsequent month during the Lease Term. Landlord may accept a partial payment of Rent, but such acceptance shall not (i) nullify any previous notice or demand for full payment or suspend the consequences of failing to pay the rent in full; or (ii) prevent Landlord from exercising in full all of its rights hereunder, including the right to demand full payment at any time under penalty of termination of the Lease according to the terms herein.
c. If Tenant continues to occupy the Premises after the Expiration Date with Landlord’s consent, Landlord may, at its sole option increase the monthly rental amount due from Tenant upon the giving of thirty (30) days written notice of such increase; provided that Tenant may choose to terminate the Lease by the giving of written notice at least ten (10) days prior to the effective date of such rental increase.
e. All Rent shall be paid to Landlord at the office located at [ADDRESS] or at such other place Landlord shall designate in writing.
5. LATE CHARGE. Any Rent received more than five (5) days after the Payment Due Date shall be subject to a late charge of five percent (5%) of the total balance owed by Tenant. A late charge may be applied for each monthly rental period. In addition, Landlord may charge a $25.00 fee to Tenant for each check returned by the bank for any reason.
6. SECURITY DEPOSIT. The Security Deposit shall be due on the date Tenant executes this Lease and shall be held by Landlord as security for the performance of Tenant’s obligations under this Lease. The Security Deposit shall not be required to be maintained by Landlord in a separate account nor shall it bear interest. Landlord may apply all or any portion of the Security Deposit to cure a breach by Tenant under the Lease and to clean the Leased Premises upon termination of the Lease if Tenant fails to do so. The Security Deposit, to the extent not applied by Landlord, shall be returned to Tenant within thirty (30) days after Tenant vacates the Premises following the expiration of the Lease.
7. USE. The Premises shall be used by Tenant for the following purpose(s):
[DESCRIPTION OF PURPOSES]
Tenant agrees that the Premises may be used and occupied only for the purposes described above and for no other use or purpose. Tenant shall, at Tenant’s expense, comply with all laws and regulations applicable to the Premises. Tenant shall obtain all permits and approvals required by all applicable authorities for the use and enjoyment of the Premises and agrees to cure in a timely fashion any violation(s) resulting from the failure of Tenant to obtain such permits and approvals. Landlord makes no representations or warranties, express or implied, that applicable law and regulations allow the Premises to be used for the purpose intended by Tenant. Tenant shall not materially interfere with Landlord’s or its other tenants’ use of common areas or other rentable spaces, including but not limited to Landlord’s self-storage facility and related improvements. If Tenant’s business includes the sale of merchandise, Tenant agrees that no auction, fire, going out of business, or bankruptcy sales shall be conducted in or around the Premises without the written consent of Landlord. In addition, Tenant shall not keep on display any merchandise or other personal property outside of the Premises without the written consent of Landlord.
8. INSURANCE. Tenant agrees to provide, prior to commencing any Tenant Improvements (if applicable) in the Premises, and to keep in force during the Lease Term, commercial general liability insurance with personal injury coverage in the minimum amounts of $[NUMBER] per person and $[NUMBER] per occurrence (which may be provided through umbrella or excess policies) and the business operated thereon and shall name Landlord and its affiliates as additional insureds thereunder. Tenant shall keep the Leased Premises insured against loss or damage by fire and casualties with a fire legal liability rider on Tenant’s liability insurance to insure full fair insurable value thereof and shall name Landlord and its affiliates as additional insureds under such insurance. Tenant agrees to carry and to keep in force during the term of this Lease, workers’ compensation insurance as required by law, covering all employees who work on our about the Premises, and require any subcontractor working on behalf of Tenant on or about the Premises to carry workers’ compensation insurance in statutory amount. Tenant agrees to deliver to Landlord certificates of insurance evidencing the coverages stated above before Tenant undertakes any work in the Premises or before Tenant takes possession thereof, whichever comes first. Tenant also agrees to give Landlord thirty (30) days written notice of cancellation of any insurance policy. Tenant shall provide the name and contact information of Tenant’s insurance agent (or carrier representative if purchased direct) to Landlord. LANDLORD DOES NOT PROVIDE ANY INSURANCE FOR THE BENEFIT OF THE TENANT.
9. WAIVER OF SUBROGATION. Tenant releases and waives any claim or right to recovery against Landlord, its agents, subsidiaries, and affiliated corporations for any loss resulting from causes covered by insurance and shall procure a waiver of subrogation on the part of the insurer recognizing that the insured has waived any right of recovery from Landlord, its agents, subsidiaries, and affiliated corporations.
10. INDEMNITY. Tenant will hold harmless, indemnify, and defend Landlord and its affiliates from and against any and all claims for damages costs or expenses of any sort, including attorney’s fees arising out of or relating to this Lease (including those due to enforcement of Tenant’s indemnity obligations hereunder) or the Tenant’s work in or use of the Premises; provided such damages, costs or expenses are not the result of the Landlord’s gross negligence or willful misconduct. Landlord shall not be liable for any loss of property by theft or otherwise or any injury to person or damage to property sustained by Tenant, or Tenant’s agents, employees, clerks or servants, or by any other person in or about the Premises, or any appurtenances thereof, or the happening of any accident in or about Landlord’s property, or due to any act or negligence of any tenant or occupant; provided such injury or damage are not the result of the Landlord’s gross negligence or willful misconduct. This provision shall apply without limitation to damage caused by water, frost, weather, steam, sewerage, electricity, gas, sewer gas or odors, or by the bursting or leaking of pipes or plumbing work, and shall apply equally whether such damage be caused or occasioned by any thing or circumstance above-mentioned or referred to, or by any other thing or circumstances whether of a like or wholly different nature, except if caused by Landlord’s gross negligence or willful misconduct. If any such damage shall be caused by the acts or negligence of Tenant, Landlord may, at Landlord’s option, repair such damage and Tenant shall thereupon reimburse Landlord for the entire cost of such damage. Landlord shall not be liable for any damage to or destruction of any of Tenant’s goods, merchandise, fixtures, or property caused by fire or other cause whatsoever. Tenant shall give to Landlord prompt written notice of any defect affecting the Premises and shall be responsible to Landlord for any damage caused by Tenant’s failure to promptly give Landlord such notice. The provisions of this paragraph shall survive the termination of this Lease for whatever reason.
11. UTILITIES. Tenant shall pay directly to the provider all charges of gas, electric, telephone, water, sewer and garbage, and other utilities or public utilities consumed on the Premises; provided that if such utilities are not separately metered, Landlord shall pay the costs of such utilities with Tenant paying its pro-rata share. Tenant shall reimburse Landlord with fifteen (15) days of Landlord submitting an invoice for its pro-rata share of utilities.
12. REPAIRS. Landlord shall be responsible for repairing and replacing the roof, exterior structural portions of the Premises (including foundation), and heating and air, electrical, and plumbing systems, unless such repair and replacement is needed because of Tenant’s negligence. Landlord does not have a duty to inspect the Premises to ascertain whether such repairs are needed. Notwithstanding the foregoing, Tenant shall be responsible for all other maintenance including, but not limited to, replacing light bulbs, fixing broken windows, and repair of normal wear and tear items. Tenant covenants to maintain the Premises in good operating condition.
13. ALTERATIONS. Tenant shall not make any alterations or improvements to the Premises without the prior written consent of Landlord. All alterations or improvements by Tenant shall become the property of Landlord without reimbursement at Landlord’s option except for Tenant’s trade fixtures, if any. Tenant shall keep the Premises free from any mechanics’ liens arising out of any work performed, materials furnished, or obligations incurred by or for Tenant or any person or entity claiming by, through, or under Tenant.
14. SIGNS. Tenant shall not erect any signs on the exterior of the Premises without the prior written consent of Landlord.
15. SURRENDER. Upon the Expiration Date, Tenant shall surrender peaceably the Premises in good order and repair at Tenant’s cost, reasonable wear and tear excepted. Tenant shall clean the Premises in commercially reasonable fashion prior to turning over possession.
16. LANDLORD RIGHT OF ENTRY. Landlord shall have the right to enter upon the Premises for purposes such as, but not limited to, inspections, repairs, and for marketing and leasing purposes. If it is necessary for Landlord to enter the Premises, Landlord will make a reasonable attempt to give advance notice to Tenant. Landlord reserves the right to enter the Premises without notice in cases of emergency.
17. SUBORDINATION AND ATTORNMENT. This Lease is and shall be subject and subordinate to any mortgage, deed of trust or other security instrument which may now or hereafter affect the real property on which the Premises are located. Tenant, upon demand by Landlord at any time or times, shall execute, acknowledge, and deliver to Landlord, without expense to Landlord, any and all instruments that may be necessary or proper to confirm the subordination of this Lease and the rights hereunder to the lien of any such mortgage, deed of trust, or other security instrument. In the event that any proceedings are brought for foreclosure, or in the event of the exercise of power of sale under any mortgage or deed of trust made by Landlord covering the Lease, Tenant shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as the Landlord under this Lease.
18. DAMAGE. If the Premises are damaged or destroyed by fire or casualty, Landlord at Landlord’s option (i) will proceed with due diligence to restore the same to its former condition, or (ii) terminate this Lease by written notice to Tenant and Tenant shall not be entitled to any damages for the unexpired portion of the Lease Term, nor shall Tenant be obligated to pay any rent after such termination. Rent during any restoration period shall proportionately abate until Landlord has completed such restoration.
19. CONDEMNATION. The parties hereto agree that should the Premises, or such portion thereof as will make the Premises unusable for the purposes herein leased, be taken or condemned by competent authority for public or quasi-public use, then this Lease shall terminate from the date when possession of the part so taken shall be required for the use and purpose for which it had been taken. If this Lease continues after a partial taking, Rent shall abate proportionately as to the part taken. All compensation awarded for such taking of the Premises or building to which the Premises belong, the fee and the leasehold shall belong to and be the property of Landlord; provided, however, that Landlord shall not be entitled to any portion of the award made to Tenant for the value of Tenant’s trade fixtures. Tenant shall not be entitled to any damages for the unexpired portion of the term of this Lease, or injury to its leasehold interest.
20. REMEDIES OF LESSOR. If Tenant shall default in the payment of the Rent reserved herein, or in the payment of any item of additional rent or other monies due hereunder, or any of the other terms, covenants, and conditions of this Lease; or if the Premises shall be abandoned, deserted, or vacated, or if Tenant shall sublet the Premises or assign this Lease except as herein provided; or if Tenant shall make an assignment for the benefit of creditors, or file a voluntary petition in bankruptcy or be adjudicated a bankrupt by any court and such adjudication shall not be vacated within thirty (30) days, or Tenant takes the benefit on any insolvency act, or Tenant be dissolved voluntarily or involuntarily or have a receiver of Tenant’s property appointed in any proceedings other than bankruptcy proceedings, and such appointment shall not be vacated within thirty (30) days after it has been made; then, upon the happening of any one or more of the defaults or events specified above, this Lease and the term hereof shall, at the sole option and election of the Landlord, wholly cease and terminate, and thereupon or at any time thereafter, Landlord may re-enter the Premises either by force or otherwise and have possession of the same and/or may recover possession thereof by summary proceedings or otherwise, but Tenant shall remain liable to Landlord for all monetary obligations under this Lease.
If any one or more of the defaults set out above, all payments of Rent or of any other monies due from Tenant during the term of this Lease shall, at the sole option of the Landlord, become immediately due and payable in full; or Landlord may re-enter the Premises using such force for that purpose as may be necessary without being liable to any prosecution therefore, change the locks, and allow Tenant limited access under the supervision of Landlord. Landlord may repair or alter the Premises in such manner that Landlord may deem necessary or advisable to relet the Premises. In addition to foregoing, Landlord shall be entitled to exercise any and all remedies available to it under applicable law. Any property left in the Premises after the expiration or termination of this Lease shall be deemed to have been abandoned and to be the property of Landlord to dispose of, as it deems expedient, without liability to Landlord.
If Landlord contracts with a collection agency or an attorney to collect any funds owed from Tenant under this Lease, all fees and collection costs shall be borne by Tenant and shall be in addition to the other amounts owed to Landlord.
21. LANDLORD’S RIGHT TO CANCEL. Should the operation of Tenant’s business be or become a nuisance or attract customers whose conduct is offensive or threatening to Landlord or its tenants, in Landlord’s reasonable judgment, Landlord may terminate this Lease, effective thirty (30) days after written notice thereof to Tenant explaining the source of disruption; provided that Tenant shall have fifteen (15) days after receiving such notice to cure such disruption(s) to Landlord’s satisfaction prior to the termination of this Lease pursuant to this Section.
22. LIMITATION OF LANDLORD’S LIABILITY. Tenant agrees that Landlord shall not be liable for damage to the property of Tenant or of any other person and/or for injury or death to any person due to any cause whatsoever. Tenant expressly agrees to indemnify and hold Landlord harmless in accordance with Section 10 above.
23. ENVIRONMENTAL COVENANTS. Tenant covenants that it will not bring upon, maintain, or store in the Premises any materials that are deemed hazardous materials or substances under any federal, state or local law. Tenant hereby indemnifies and agrees to save Landlord harmless as to any liabilities or costs (including attorney’s fees) incurred by Landlord in connection with Landlord’s use of hazardous materials or substances at or in the Premises.
24. QUIET ENJOYMENT. Landlord covenants and agrees that if Tenant shall perform all of the covenants and agreements herein stipulated to be performed on Tenant’s part, Tenant shall at all times during the Lease Term have the peaceable and quiet enjoyment and possession of the Premises and appurtenances thereto without any manner of hindrance from Landlord or any persons lawfully claiming through Landlord.
25. RECORDING. Tenant shall not record a copy of this Lease nor any memorandum hereof.
26. ASSIGNMENTS AND SUBLETTING. Landlord may sell or assign its interest in this Lease. Tenant may not assign or encumber this Lease and the estate granted hereby or sublease the Premises in whole or in part, without the written consent of Landlord, which consent may be withheld in Landlord’s sole discretion. However, if Landlord consents to such assignment or subletting, then (i) Tenant shall remain primarily responsible to Landlord for the payment of rent and performance of all covenants, terms, and conditions hereof on Tenant’s part to be performed; and (ii) Landlord and Tenant shall share on an equal basis any excess rents to be paid to Tenant as a result thereof in excess of the rents to be paid by Tenant under this Lease.
27. RULES AND REGULATIONS. Landlord reserves the right to make, amend, and enforce rules and regulations regarding the use and occupancy of the Premises, and if applicable, for the building to which the Premises is a part. Current rules and regulations are attached hereto as Exhibit “B” and made a part of this Lease. Tenant agrees to comply with and observe such rules and regulations and any amendments thereto. Landlord shall use its best efforts to provide Tenant with any amendments, additions, or changes to the rules and regulations. Landlord shall not be liable for the failure of other tenants to abide by and observe the rules and regulations.
28. NOTICES. All notices in this Lease provided to be given by either party hereto to the other shall be in writing and shall be deemed to have been given (i) when hand delivered to the addresses set forth below (including delivery by a nationwide delivery service such as Federal Express); or (ii) addressed to the address set forth below and deposited in the United States mail, certified mail, return receipt requested, postage pre-paid, in which event such notice shall be deemed given within three (3) business days after deposit in the United States mail. The address to which any notice, demand, or other writing may be given, made, or sent to either party may be changed by written notice given by such party as above provided.
If to Landlord:
With Copy to:
If to Tenant:
29. AUTHORITY TO EXECUTE. Landlord and Tenant do each hereby respectively represent to the other that it has the capacity and authority to enter into this Lease.
30. FINAL AGREEMENT. This Lease represents the entire, exclusive, and final agreement of the parties and may not be modified except in writing, signed by all parties. All exhibits and schedules attached hereto are hereby incorporated by this reference.
31. GOVERNING LAW. This Lease shall be construed in accordance with the laws of the state where the Premises is located.
32. SEVERABILITY. If any provisions of this Lease are contrary to law or found unenforceable, such provisions will be stricken from the Lease with the balance remaining in full effect to the greatest extent permitted by law.
33. COUNTERPARTS. This Lease may be signed in one or more counterparts, whether by original, copy, electronic (including PDF), or telecopy signature, each of which together will form one binding agreement of the parties.
34. PATRIOT ACT. Tenant is not, and shall not during the Lease Term become, a person or entity with whom Landlord is restricted from doing business under the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, H. R. 3162, Public Law 107-56 (commonly known as the “USA Patriot Act”) and Executive Order Number 13224 on Terrorism Financing, effective September 24, 2001 and regulations promulgated pursuant thereto (collectively, “Anti-Terrorism Laws”), including without limitation persons and entities named on the Office of Foreign Asset Control Specially Designated Nationals and Blocked Persons List (collectively, “Prohibited Persons”). To the best of its knowledge, Tenant is not currently engaged in any transactions or dealings, or otherwise associated with, any Prohibited Persons in connection with the use or occupancy of the Premises. Tenant will not, during the Lease Term, engage in any transactions or dealings, or be otherwise associated with, any Prohibited Persons in connection with the use or occupancy of the Premises. Tenant’s breach of any representation or covenant set forth in this Section 33 shall constitute a breach of this Lease by Tenant, entitling Landlord to any and all remedies hereunder, or at law or in equity.
IN WITNESS WHEREOF, the parties hereto set their hands the day and year stated above.
[Name of Landlord] ____________________________________
[Name of Tenant] ____________________________________
Printed Name: ________________________
Printed Name: ________________________
RULES AND REGULATIONS