This is a thorough triple net lease for a retail space.
THIS LEASE, Made and entered into as of the ___ day of ________, 20___ by and between _________________________________, having its principal place of business at__________________________________________, hereinafter called "LESSOR", and_______________________________, having its principal place of business at ______________________________hereinafter called "LESSEE."
Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the Premises comprised as follows:
(a) real estate situated in the City of___________, County of _________, and State of ______, and legally described on Exhibit "A" (the "Land"), more commonly known as (address):
(b) the building and improvements situated thereon consisting of a one-story retail store thereon (the "Improvements") measuring __________ square feet described on Exhibit "B"; and
(c) all that portion of the tract of land in Exhibit "A" not covered by buildings is to be common area (the "Common Area") for the joint use of all tenants, customers, invitees, and employees [the Land, the Improvements and the Common Area collectively referred to as the "Premises"].
Lease Term. The term of this Lease shall commence on that date the Lessor has completed all work and renovation required for Lessee to take possession of Premises. The initial Lease Term shall be for _____ years. Provided it shall not be in default hereunder, Lessee shall be entitled to extend the term of this Lease for ______ successive periods of ______years each, upon the same terms and conditions as herein set forth, except as to term, rent and number of renewals. Lessee may extend this Lease by giving Lessor written notice as provided herein not less than ______ days prior to expiration of the original term, or of any renewal thereof. Should Lessee neglect to exercise an option on the applicable date, Lessee’s right to exercise its option shall not expire until ______ days after notice by Lessor of Lessee’s failure to exercise its option.
(a) During Lease Years _____ through _____, theLessee shall pay Lessor an annual rent of _______ payable in monthly installments of _______, payable in advance on or before the first day of each month.Should Lessor not receive rental payment by the fifth (5th) day of the month in which it is due, Lessee shall pay a 5% late fee.
(b) Lease Year defined. The term "Lease Year" as used herein shall mean each twelve (12) full calendar months during the term hereof. The first Lease Year shall begin on the Commencement Date if the Commencement Date shall occur on the first (1st) day of the month; otherwise, then the first Lease Year shall commence on the first day of the first full month next following. The period prior to the Commencement Date shall be a partial month and the rent for that partial month shall be prorated as to the number of days Lessee occupies the Premises.
(a) Lessee may, itself or through Lessees or assignees, occupy and use the Premises for the following purposes: Establishment of ____________; or for any other lawful purposes as the Tenant (its Lessees or assignees) may desire. Lessees may paint all or any part of the Premises in colors of Lessee’s selection; make any alterations it may desire to the Premises (except structural changes) and alter improvements and equipment all at Lessee’s expense with prior Lessor approval. Said approval will be given in a timely manner and shall not unduly be withheld.
(b) Lessor shall not lease any other property which Lessor now or hereafter owns or leases within a radius of one-half (½) mile of the Premises to any other person, firm or corporation for any purpose which may result in the sale of products usually sold in a __________. Lessor shall not permit the use of any such proximate premises for the sale of products usually sold in a _____________ and shall, at Lessee’s request, take appropriate action against any of its other tenants, or their Lessees, who shall engage in the sale of such products from such proximate premises. In the event Lessor shall default in the performance of its obligations under this Paragraph 4. (b), Lessee shall be entitled to receive anabatement in rent payments for the period commencing on the date Lessor defaults in the performance of its obligations hereunder and continuing until such time as Lessor shall cure said default. The rights of Lessee as set forth in this Paragraph 4. (b) shall be in addition to any other rights or remedies Lessee may have at law or in equity.
5. REAL ESTATE TAXES. Lessee shall pay, as an additional charge hereunder, the proportionate share of any Real Estate Taxes levied and assessed against the Premises which were incurred during the actual year of Lessee’s tenancy, being a tax period beginning with the date Lessee accepts possession of the Premises through termination or expiration date of this Lease. Lessee’s proportionate share shall be in the ratio which the number of square feet of the Premises bears to the total number of square feet of all rentable area included in the building. Lessee will pay Lessor within thirty (30) days after demand, and upon delivery to Lessee of photocopies of the tax bill.
Lessee is hereby granted the right, in the name of Lessor, to contest the tax base, assessment and tax rate of the Premises.
Lessee shall be liable for all fees and taxes associated with the ownership of personal property located on the rental Premises and shall further be liable for the payment of all fire service fees.
(a) Lessor covenants and agrees that it will at all times keep the Improvements insured with commercial general liability insurance includingfire insurance with extended coverage for not less than one hundred per cent (100%) of its replacement value above foundations, and will keep all such insurance in full force and effect during the entire term of this lease. Such insurance shall be procured from a responsible insurance company or companies with a rating of no less than AA authorized to do business in the state in which the Premises are located, and shall provide for payment of loss there under to the Lessor, and Lessor shall become a "Trustee" of said funds for the benefit of Lessee, which funds shall be used for repairing or rebuilding the Premises, as hereinafter provided. Lessee shall be named an additional insured in the policies and Lessor shall furnish to Lessee current certificates of insurance evidencing such insurance and the policies shall contain a provision that there will be no cancellation, reduction or non-renewal in coverage without first giving Lessee ten (10) days notice. Lessee shall pay as an additional charge hereunder, reimbursement for a proportionate share of Lessor’s insurance premiums for the building. Lessee’s proportionate share shall be in the ratio which the number of square feet of the Premises bears to the total number of square feet of all rentable area included in the building. Lessee shall pay Lessor within thirty (30) days after demand and upon delivery to Lessee of photocopies of the bills and invoices therefore and upon Lessor’s certification that such insurance costand expenses have been paid.
(b) Lessee covenants and agrees that it will at all times during the term hereof maintain or cause to be maintained for the mutual benefit of the Lessor and the Lessee, public liability insurance, including insurance in such amounts as may be necessary to indemnify against any loss as provided by any state statute and which insurance policy shall specifically cover the Lessor, Lessee, and any subtenant, against claims for bodily injury, death or property damage, occurring in on or about the Premises, or in, on or about the streets, sidewalks or property adjacent to the Premises, such insurance to afford protection to the limit of not less than One Million Dollars ($1,000,000.00) in respect to injury or death of a single person, and to the limit of not less than Three Million Dollars ($3,000,000.00) in respect to any one accident and to the limit of not less than Fifty Thousand Dollars ($50,000.00) in respect to property damage. Lessee shall furnish Lessor with a duplicate certificate or certificates of such insurance policies, stating therein the number of each such policy and the date of expiration of each policy, and shall from time to time whenever required, deliver paid receipts to the Lessor evidencing that such policy or policies is or are in full force and effect.
Should Lessee at any time not have such insurance policies in effect, Lessor shall have the right to purchase such insurance, and the cost of all such insurance, so acquired by Lessor, shall be invoiced to Lessee and paid as additional rent hereunder.
7. DESTRUCTION OF PREMISES. If at any time during the term hereof the Improvements or any portion of the Premises shall be damaged or destroyed by fire or by perils covered by extended coverage clauses, irrespective of the proximate cause, Lessor shall immediately, but not later than thirty (30) days from the date of the damage or destruction, commence to repair or rebuild the Improvements and Premises in the same condition as said Improvements and Premises were in immediately prior to the damage or destruction (or if the type of building currently in use by Lessee at other locations be different in any respect, then such rebuilding shall be of such changed design, at the Lessor’s cost and expense, but not to exceed the amount of insurance recovered) and shall complete same within 180 days from the date Lessor commenced such restoration or rebuilding. In the event the Premises and the Improvements shall not be completed within said 180-day period, Lesseeor Lessor may, at its option, terminate this lease. From the date of such damage or destruction, until Improvements and Premises shall have been completely restored as aforesaid, rent shall abate. If the Improvements shall be substantially or totally destroyed during the last three (3) years of the initial term or of any renewal or extension hereof, Lessee may elect to terminate this lease as of the date of such destruction by written notice to Lessor given within twenty-five (25) days following the date of such damage or destruction. If Lessee elects not to terminate this lease then, and in that event, the term of this lease shall automatically be extended for a period of five (5) additional years beyond the then current expiration date.
8. UTILITY CHARGES. Lessee agrees to pay or cause to be paid directly to provider thereof, all utility charges which may be levied, assessed or imposed upon said Premises.
9. OUTSIDE MAINTENANCE. Lessor shall be responsible for repairs, maintenance and replacement of all paved driveways, all parking areas, and all rear or side delivery areas. Lessor shall provide and maintain adequate lighting of the parking, driving and delivery areas. Lessor shall provide forall driveways, parking area, delivery areas, sidewalks and painting of appropriate lines designating parking spaces, and the landscaping and upkeep of all non-paved areas. Lessee agrees to pay Lessor six and one-half percent (6.5%) of the annual rent due, payable in monthly installments, in advance, on or before the first day of the month, as Lessee’s sole contribution to Lessor for its actual cost of care and maintenance on the Common Area. The amount due monthly is __________________________________ for Lease Years ______ through ______. Should Lessor not receive Common Area Maintenance payment by the fifth (5th) day of the month in which it is due, Lessee shall pay a 5% late fee.
10. USE AND CARE OF PREMISES. Lessee covenants and agrees that it will not use or permit any person to use the Premises or any part thereof for any use or purpose in violation of the laws of the United States of America, the State of ______, or ordinances or other regulations of any municipality in which the Premises are situated or of any other lawful authorities and that during said term it will keep the Premises in a clean condition and generally that it will in all respects and at all times fully comply with all lawful health, fire and police regulations.
11. REPAIRS AND REPLACEMENTS.
(a) Lessee covenants and agrees at its own expense to keep the interior of the Improvements, the portion of the Premises included under this lease, at all times in good repair, order and condition, except such repairs as are necessitated by fire or other casualties whether or not caused by the active or passive negligence of the Lessee, its assignees or Lessees, and except such repairs for damage or loss caused by the negligence of Lessor or its agents.
(b) Lessor shall maintain the exterior of the Improvements, including but not limited to structural repairs, the roof, walls, floors, glass, doors, doorjambs, thresholds and parking area and shall make all repairs or replacements when reasonably necessary and repair all damages to the Improvements and the Premises including interior decorating caused by Lessor’s negligence. Lessor shall maintain, repair, and replace the heating, plumbing, air conditioning and electrical systems of the Premises.
12. CONDEMNATION. In the event that the whole or any substantial part of the Premises or any part of the Improvements shall be permanently taken or condemned for a public or quasi-public use or purpose by any competent authority, then and in that event the term of this lease shall terminate from the date when possession of the Premises or Improvements shall be required for such use or purpose but any award, compensation or damages shall be divided between Lessor and Lessee in accordance with their respective interests as they existed on the date prior to said termination. The current rental shall in such case be apportioned as of the date of termination of the lease. If, however, a portion of the Premises is so taken which partially affects the occupancy or use of the Premises by the Lessee, then and in such event, the rent shall be adjusted accordingly.
13. ASSIGNMENT AND SUBLETTING. Lessee may not at any time assign this lease or sublet the Premises, in whole or in part without the prior written consent of the Lessor. No sub-letting or assignment of this lease shall relieve the tenant from any of its obligations hereunder.
14. SIGNS. Lessee may install such signs as it deems necessary on the Improvements as well as billboards or pole signs on any portion of the Premises but all signs shall comply with all ordinances applicable thereto and have approval of the Lessor prior to installation
(a) All of Lessee’s trade fixtures and other fixtures and all personal property, apparatus, machinery and equipment now or hereafter located upon the Premises other than that provided by Lessor, and owned by the Lessee or any other occupants of the Premises and whether or not the same are affixed thereto, shall be and remain the personal property of the Lessee or such other occupants and the same are herein sometimes referred to as "Lessee’s equipment".
(b) Lessee’s equipment may be removed from time to time by Lessee or other occupants of the Premises, provided, however, that if such removal of fixtures and equipment other than initial fixtures and equipment shall injure or damage the Premises, Lessee shall repair the damage and place the Premises in the same condition as it would have been if such equipment had not be installed.
(c) To the fullest extent permitted by law, Lessor hereby waives any and all liens, claims for liens or any other security interest Lessor may have in Lessee’s equipment.
16. RE-ENTRY BY DEFAULT. If Lessee shall default in the performance of any of the covenants, agreements, conditions or undertaking herein contained to be kept, observed and performed by the Lessee and such default shall continue for thirty (30) days after notice thereof to the Lessee, or if (a) proceedings in bankruptcy be instituted by or against the Lessee or (b) a receiver or trustee is appointed for all or substantially all of the Lessee’s business or assets on the ground of Lessee’s insolvency, or (c) a trustee is appointed for it after a petition has been filed for the Lessee’s reorganization under the Bankruptcy Act of the United States, or if Lessee shall make an assignment for the benefit of its creditors, or shall vacate or abandon the Premises, then in such event, it shall be lawful for Lessor at its election, to declare the said term ended and to re-enter the Premises but only under legal process, with such re-reentry and repossession working a forfeiture and abandonment by the Lessor of the rents to be paid and the covenants to be performed by the Lessee during the balance of this lease. If default shall be made in any covenant, agreement, condition or undertaking herein contained to be kept, observed and performed by Lessee other than the payment of rent as herein provided which cannot with due diligence be cured within a period of thirty (30) days and if notice thereof shall have been given to Lessee, and if Lessee prior to the expiration of thirty (30) days from and after the giving of such notice commences to eliminate the cause of such default and proceeds diligently and with reasonable dispatch to take all steps and do all work required to cure such default, then such default shall be considered cured if acted upon with reasonable diligence within thirty (30) days of notice even though correction is not completed within thirty (30) days. If such default is not cured in a reasonable period of time or reasonable diligence by Lessee ceases to occur, then Lessor shall have the right to declare the said term ended by reason of such default provided.
17. REMEDIES TO BE CUMULATIVE. No remedy herein or otherwise conferred upon or reserved to Lessor shall be considered exclusive of any other remedy but the same shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute, and every power and remedy given by this lease to Lessor may be exercised from time to time and as often as occasion may arise or as may be deemed expedient. No delay or omission of Lessor to exercise any right or power arising from any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein.
18. SURRENDER OF POSSESSION. Whenever the said term herein shall be terminated, whether by lapse of time, forfeiture or in any other way, Lessee covenants and agrees that it will at once surrender and deliver up the Premises, including the buildings and improvements thereon peaceably to Lessor in as good condition as when Lessee took possession, ordinary wear and tear and any alterations and changes and any damage caused by fire or other casualties excepted, and if Lessee shall hold over after any termination of this lease the same shall create no more than a month to month tenancy at the rent and on all other applicable conditions herein provided.
19. NOTICES OR DEMANDS. All notices or demands upon the Lessor and Lessee desired or required to be given under any of the provisions hereof shall be in writing. Any notices or demands from the Lessor to the Lessee shall be deemed to have been duly and sufficiently given if a copy thereof has been mailed by United States Certified Mail, return receipt requested, in an envelope properly stamped and addressed to the Lessor at ___________________________________________________,or at such other address as Lessor may theretofore have furnished by written notice to the Lessee; and any notices or demands from the Lessee to the Lessor shall be deemed to have been duly and sufficiently given if mailed by United States Certified Mail, return receipt requested, in an envelope properly stamped and addressed to Lessee at ______________________________________________________, or at such other address as Lessee may theretofore have furnished to Lessor by written notice.
20. QUIET ENJOYMENT. Lessor covenants that the Premises are zoned for the purpose intended and that Lessor is well seized of and has good title to lease the Premises; that Lessor will warrant and defend the title thereto, and will indemnify Lessee against any damage and expense Lessee may suffer by reason of any lien, encumbrance, restriction or defect in title to or description herein of the Premises. If, at any time Lessor’s title or right to receive rent hereunder is disputed, or there is a change of ownership of Lessor’s estate by act of the parties or operation of law, Lessee may withhold rent thereafter accruing until Lessee is furnished proof satisfactory to it as to the party entitled thereto.
21. BINDING EFFECT. This lease shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors and assigns of the respective parties hereto.
22. TRIPLE NET LEASE. Lessor and Lessee acknowledge, covenant and agree that this lease is a triple net ("NET-NET-NET") lease and that with regard thereto any and all costs, expenses or other charges relative to or arising out of the Premises shall be the obligation of Lessee hereunder as "additional rent" payable to Lessor, over and above the stated rental provisions as set forth in Paragraph 3. Notwithstanding, any expression or inference to the contrary, all terms and conditions of this lease shall be interpreted and read in a manner consistent with a triple net lease.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed by their respective officers, and their respective corporate seals to be affixed hereto, all by authority of their respective Board of Directors on this ____ day of ________, 20___.