Lease of Showroom
Lease Agreement made on the ________________ (date) , between
______________________
(Name of Lessor) , a corporation organized and existing
under the laws of the state of ______________, with its principal office located at
______________________________________________________________________
(street address, city, state, zip code) , referred to herein as Lessor , and
_______________________
(Name of Lessee) , a corporation organized and existing
under the laws of the state of ______________, with its principal office located at
______________________________________________________________________
(street address, city, state, zip code) , referred to herein as Lessee .
1. Description of Leased Premises
Lessor leases to Lessee a portion of the premises known as ________________
_______________
(Name of Premises) , located at ____________________________
______________________________________
(street address, city, state, zip code) ,
consisting of a showroom, marked number _____
(number) , comprising approximately
__________
(number) square feet on the ________ (ordinal number) floor of the
premises, and described on the floor plan attached to and made a part of this lease
agreement as
Exhibit A , hereinafter referred to as the Leased Premises .
2. Term
The term of this Lease Agreement commences on __________________ (date) ,
and terminates on ________________
(date) , at __________ (time) , unless sooner
terminated as provided in this Lease Agreement. Except as otherwise provided in this
Lease Agreement, Lessee shall take possession and commence paying rents as of the
commencement date.
3. Rent
Lessee shall pay to Lessor in advance on the first day of each month during the
term of the Lease Agreement, $______________, without any deduction, setoff, prior
notice, or demand. Beginning on the first anniversary of the commencement date and
continuing on each succeeding anniversary, base rent per month shall be increased by
________%.
4. Taxes
Lessee shall pay to Lessor Lessee's participation multiplied by the total amount
of taxes for the tax year ending in the calendar year. The term
tax shall include the
following: real estate taxes and all other taxes relating to the building and land upon
which it is located, all other taxes that may be levied in lieu of or in addition to real
estate taxes, assessments, taxes on personal property owned by Lessor and used on
the building, taxes or any other levy assessed against Lessor on account of rent, and all
other governmental charges or levies of any kind and nature for public improvements,
services or benefits which are assessed, levied or become payable during the term of
the Lease Agreement, including any tax directly substituted for any real property taxes,
and all the cost and expenses of contesting any such taxes. Lessee shall pay its share
of taxes within ______ (number) days after notice.
5.Utilities
Lessee shall pay to Lessor an amount equal to Lessee's participation multiplied
by Lessor's estimated monthly cost of providing utilities to the building. The term
utility
costs
shall include the costs of electricity, gas, or other utilities necessary for heating,
air-conditioning, lighting, the operation of elevators or escalators, and the operation of
office machines and other equipment used in or about the building. Lessee shall pay its
share of such utility costs on the first day of each month during the term of this Lease
Agreement.
6. Operation and Maintenance Expenses
Lessee shall pay to Lessor an amount equal to Lessee's participation multiplied
by Lessor's operating expenses in connection with the building and land. The term
operation and maintenance expenses shall include all costs of operating, maintaining,
and managing the building and land on which it is located, including but not limited to
costs of landscaping, water and sewer, waste disposal, janitorial services, air-
conditioning, heating, security, elevators and escalators, window washing, repair and
servicing of equipment, licenses, permits and inspection fees, salaries and wages,
employee benefits, payroll taxes, accounting, auditing and legal expenses,
management fees, taxes on personal property used on the building, capital
expenditures required to comply with laws and regulations relating to the building, and
the cost of contesting the validity or applicability of any governmental enactment
affecting the operation and maintenance of the building. Lessee shall pay its share of
operation and maintenance expenses within ______
(number) days from notice.
7. Security Deposit
Lessee shall pay Lessor, upon execution of this Lease Agreement, a security
deposit of $____________ to be held by Lessor to secure all payments due under this
Lease Agreement and Lessee's compliance with its obligations under this Lease
Agreement. If Lessor applies any part of the deposit to cover such payments due,
Lessee shall immediately, upon notice, restore the deposit to its full amount. At the
expiration of this Lease Agreement, any unused balance shall be refunded to Lessee.
No interest shall be paid on the security deposit.
8. Use of Premises
The Leased Premises shall be used by Lessee exclusively as a show room for
(description of products) ________________________________________________
__________________________________________________ for the sole purpose of
exhibiting and selling at wholesale such products. Lessee shall not use the Leased
Premises for purposes of selling directly to retail customers. Lessee shall maintain on
the Leased Premises a representative display of its products. Lessee shall keep the
Leased Premises open for business from ________
(time) to ________ (time) , Monday
through Friday; from __________
(time) to __________ (time) on Saturdays; from
_________
(time) to __________ (time) on Sundays; and from __________ (time) to
________
(time) on holidays (except the following holidays: (list names of holidays)
_____________________________________________________________________
______________________________________________________________________
_____________________________________________________________________.
9. Restrictions on Use
A. Lessee shall not use or allow the use of the Leased Premises, or bring or
keep anything in or on the Leased Premises that will increase the risks covered
by insurance on the Leased Premises and result in an increase in the rate of
insurance or in a cancellation of any insurance policy, even if the use may be in
furtherance of Lessee's business purposes.
B. Lessee shall not keep, use, or sell anything prohibited by any policy of fire
insurance covering the Leased Premises or any law or regulation affecting the
occupancy and use of the Leased Premises.
C. Lessee shall not obstruct or interfere with the rights of other Lessees of
the building, or injure or annoy them.
D. Lessee shall not use or allow the Leased Premises to be used for any
illegal or immoral purpose.
10. Trade Shows and Productions
If a majority of the Lessees of the building decide to sponsor or participate in any
trade show or promotion, Lessee agrees to pay its proportionate share of the cost of the
show or promotion. Lessee also agrees to keep the Leased Premises open and
properly staffed during the period of such trade shows or promotions.
11. Delivery, Acceptance, and Surrender of Leased Premises
Lessor represents that the Leased Premises are in good, sanitary, and
tenantable condition for use by Lessee. Lessee's acceptance or occupancy of the
Leased Premises shall constitute recognition of such condition. At the expiration of this
Lease Agreement, Lessee shall surrender the Leased Premises in the same condition
as when Lessee took possession, allowing for reasonable use and wear and damage by
fires, storms, or any act of God. Before surrendering the Leased Premises, Lessee shall
remove all business signs and all items of personal property placed on the Leased
Premises by Lessee and restore the portion of the Leased Premises on which they were
placed in the same condition as when the Leased Premises were delivered to Lessee.
12. Building Services
A. Lessor shall provide heating and air-conditioning, as well as escalator,
elevator, and janitorial service for the public portions of the building. However,
Lessor shall not be liable for any interruption or stoppage of such services
caused by mechanical breakdown, repair of equipment, accident, restrictions on
the use of energy, unusual weather conditions, labor problems, unavailability of
material, or other circumstances beyond the control of Lessor.
B. The removal of large items of garbage, such as cartons, packing
materials, discarded equipment, furniture, or fixtures shall be the responsibility of
Lessee. Lessee may arrange with a private contractor or with Lessor for their
removal. Any garbage left outside the Leased Premises for more than 24 hours
shall be removed by Lessor at Lessee's expense.
13. Alterations, Additions and Improvements
A. Lessor shall construct at its own expense partitions between the Leased
Premises and other Lessees' Premises and the common areas. Lessee shall be
responsible for the interior painting or covering of the partition constructed by
Lessor.
B. Lessee shall construct or provide at its own cost and expense all interior
partitions, lighting fixtures, wall and floor coverings, painting, and other interior
decoration suitable for a show room. The following conditions with respect to
alterations, additions, or improvements by Lessee shall be observed:
1. Before commencement of any work, all plans and specifications
shall be submitted to Lessor for approval and shall be filed with and
approved by all governmental authorities having jurisdiction and by any
public utility company having an interest in the Premises. All work done by
or for Lessee on the Leased Premises shall be in conformity with all laws
and regulations.
2. Before commencing any work on the Leased Premises, Lessee
shall pay to Lessor the amount of any increase in premiums on insurance
policies provided for in this Lease Agreement because of endorsements to
be made covering the risk during the course of the work. If the estimated
cost of the work shall exceed $____________, Lessee shall, at its own
cost, furnish Lessor with a performance bond underwritten by a surety
acceptable to Lessor in an amount equal to the estimated cost of the work,
to guarantee the completion of the work, free and clear of all liens,
encumbrances, and security interests, according to the approved plans
and specifications.
3. Lessee agrees not to overload the electrical circuitry of the Leased
Premises. If additional electrical circuitry is necessary for use of the
Leased Premises, Lessee shall pay its cost.
4. All alterations, additions, and improvements on or in the Leased
Premises, except unattached movable fixtures, shall become part of the
Leased Premises and the sole property of Lessor, unless Lessor notifies
Lessee to restore the Leased Premises or the specific portions designated
by Lessor to the same condition in which they were at the time of delivery
of the Leased Premises to Lessee, at the expense of Lessee and prior to
the termination of this Lease Agreement.
14.Repairs and Maintenance
Lessee shall, at its own expense, maintain in good condition and keep clean all
portions of the Leased Premises, except exterior walls and the roof which shall be
maintained in good condition and repair by Lessor. Lessor is not obliged to furnish
janitorial service to the Leased Premises.
15. Signs and Awnings
A. Lessee shall not paint or place signs or install any awnings or other
structures projecting from the exterior of the Leased Premises without the prior,
express, and written consent of Lessor. Lessee shall remove such signs,
awnings, or other structures that it has placed on the Leased Premises which, in
Lessor's opinion, are offensive or otherwise objectionable. If Lessee fails to
remove such signs, awnings, or other structures within ______
(number) days
after receiving written notice from Lessor to remove them, Lessor may enter the
Leased Premises and remove them at the expense of Lessee.
B. Lessee shall not conduct
going out of business, lost our Lease, liquidation,
or other sales of that nature on the Leased Premises without the prior, express,
and written consent of Lessor.
16. Movement of Bulky Objects
Merchandise, furniture, fixtures, and other bulky objects shall be moved into and
removed from the Leased Premises only through the freight entrance and freight
elevator.
17. Destruction of Leased Premises
A. If the building in which the Leased Premises are located should be totally
destroyed by fire, earthquake, or other cause to such an extent that it cannot be
rebuilt or repaired within ______
(number) days after the date of such
destruction, this Lease Agreement shall be terminated.
B. If the building in which the Leased Premises are located should be
partially damaged by fire, earthquake, or other cause, but only to such an extent
that it can be rebuilt or repaired within ______
(number) days after the date of
such destruction, this Lease Agreement shall be terminated only as otherwise
provided in this Lease Agreement. If Lessor intends to rebuild or repair the
Premises, Lessor shall, within _______
(number) days after the date of the
damage, give written notice to Lessee of the intention to rebuild or repair and
shall proceed with reasonable diligence to restore the building to substantially the
same condition in which it was in immediately prior to the destruction. However,
Lessor shall not be required to rebuild, repair, or replace any improvements or
alterations made by Lessee within the building. During the period of rebuilding or
repairing, rent shall be reduced proportionately to the extent to which the repair
operations interfere with the use of the Leased Premises by Lessee. If, after
rebuilding or repairing has commenced, the rebuilding or repairing cannot be
completed within _______ (number) days after the date of partial destruction,
then Lessor may either terminate this Lease Agreement or continue with a
proportional rent rebate to Lessee.
18. Insurance
Lessee shall, at its cost, maintain comprehensive liability insurance, including
public liability and property damage, insuring Lessee and Lessor for at least
$______________ for each bodily injury, $______________ per occurrence and
$______________ for property damage. A copy of the certificate of insurance shall be
provided Lessor. Lessee shall provide a written stipulation from insurers to notify Lessor
in writing at least _______
(number) days prior to cancellation or refusal to renew any
policy. If the insurance is not kept in force during the entire term of this Lease
Agreement or an extension of this Lease Agreement, Lessor may procure the
necessary insurance and pay the premium for it, and the premium shall be repaid by
Lessee to Lessor as an additional rent installment for the month following the date on
which the premiums were paid by Lessor.
19. Non-liability of Lessor for Damages and Indemnity
Lessor shall not be liable for liability or damage claims for injury to persons or
property from any cause relating to the occupancy of the Leased Premises by Lessee,
including those arising out of damages or losses occurring on sidewalks and other
areas adjacent to the Leased Premises. Lessee shall indemnify Lessor from all liability,
loss, or damage claims or obligations resulting from any injuries or losses of this nature.
Lessee waives any claim against Lessor for damages relating to its occupancy of the
Leased Premises from any cause, including but not limited to burglary, theft, or damage
by water.
20. Liens
Lessor shall have a lien for all amounts due from Lessee on all items of personal
property of Lessee in the Leased Premises. Such liens shall be in addition to any other
remedies that Lessor may have. Upon the occurrence of any ground constituting a
breach of this Lease Agreement, Lessor shall have the option to enter the Leased
Premises and take possession of any personal property of Lessee on the Leased
Premises, sell the property with or without notice at private or public sale, at which
Lessor or its assigns may purchase, and apply the proceeds, after deducting expenses
in connection with the sale, as a credit against any amounts due from Lessee to Lessor,
and any excess shall be delivered to Lessee.
21. Entry on Premises by Lessor
Lessor or its agent shall have the right to enter the Leased Premises at all
reasonable hours to inspect them, perform required maintenance and repairs, or make
additions, alterations, or modifications to any part of the building in which the Leased
Premises are located. Lessor may erect the necessary structures, post relevant notices,
and place movable equipment in connection with the making of such additions,
alterations, or modifications, without liability to Lessee for disturbance of the quiet
enjoyment of the Leased Premises or for loss of use or profits. Lessor may also enter
the Leased Premises for the purpose of performing, at Lessee's expense, repair and
maintenance work that Lessee is obliged to render under this Lease Agreement, but
which Lessee fails to do after ______
(number) days written notice.
22. Assignment and Sublease
A. Lessee shall not assign or sublease the Leased Premises, or any right or
privilege connected with the Premises, or allow any other person except its
employees and agents to occupy the whole or any part of the Leased Premises,
without the prior, express, and written consent of Lessor. A consent by Lessor
shall not be a consent to a subsequent assignment, sublease, or occupation by
other persons. Any unauthorized assignment, sublease, or consent to occupy by
Lessee shall be void and shall, at the option of Lessor, terminate this Lease
Agreement.
B. This Lease Agreement, or any interest of Lessee in this Lease Agreement,
is not assignable by operation of law without the prior, express, and written
consent of Lessor.
23. Sale of Leased Property
If Lessor sells or otherwise conveys the Leased Property, Lessor shall be
released from any liability subsequently arising based on any of the terms of this Lease
Agreement. After such sale or conveyance, Lessee shall deal solely with Lessor's
successor. Any security deposit held by Lessor shall be transferred to Lessor's
successor and Lessor shall be discharged from any further liability with respect to it.
24. Option to Renew
Lessor grants to Lessee an option to renew this Lease Agreement for a period of
_____ years after expiration of the term of this Lease Agreement at a rental of
$__________ per month, with all other terms and conditions of the renewal lease
agreement to be the same as those of this Lease Agreement. If Lessee desires to
exercise this option, Lessee must give Lessor written notice at least ______
(number)
days before this Lease Agreement expires.
25. Holdover
If Lessee holds over the whole or any part of the Leased Premises, without
Lessor's prior, express, and written consent after the expiration of this Lease
Agreement, a tenancy from month-to-month shall be created, and tenant shall pay
rental of %_______ per month.
26. Breach of Agreement
The following shall be deemed to constitute a breach of the terms of this Lease
Agreement:
A. The failure by Lessee to pay any amount of money due under this Lease
Agreement.
B. The failure by Lessee to comply with any other provision or condition of
this Lease Agreement.
C. The abandonment by Lessee of the whole or any part of the Leased
Premises.
27. Remedies of Lessor for Breach by Lessee
If Lessee breaches this Lease Agreement, Lessor shall, in addition to other rights
and remedies, have the following remedies:
A. Lessor may reenter the Leased Premises immediately and remove all the
property and personnel of Lessee, store such property in a public warehouse or
at any other place selected by Lessor, all at the expense of Lessee. Reentry by
Lessor shall not by itself result in termination of this Lease Agreement, unless
Lessor gives written notice to that effect.
B. After reentry, Lessor may relet the whole or any part of the Leased
Premises for any term without terminating this Lease Agreement, at such rent
and on such terms as it may choose, for Lessee's account. Lessor may make
such alterations and repairs to the Leased Premises as may be necessary or
required. The duties and liabilities of the parties upon such reletting are as
follows:
1. In addition to Lessee's liability to Lessor for breach of this Lease
Agreement, Lessee shall be liable for all expenses of the reletting,
including but not limited to broker's commissions, expenses of alteration
and repairs, and all other expenses of Lessor. Lessee shall repay to
Lessor such expenses on the dates the rent is due as provided in this
Lease Agreement, minus the rent received by Lessor from reletting.
2. Lessor, at its option, shall have the right to apply the rent received
from reletting the Premises as follows: (a) to reduce Lessee's
indebtedness to Lessor under this Lease Agreement, not including
indebtedness for rent; (b) to cover expenses of the reletting and
alterations and repairs made; (c) to cover the rent due under this Lease
Agreement; or (d) to the payment of future rent under this Lease
Agreement as it becomes due.
C. Lessor may terminate this Lease Agreement on giving _______
(number)
days written notice of termination to Lessee. Upon termination of this Lease
Agreement, Lessor may recover from Lessee all damages proximately resulting
from the breach, including the cost of recovering the Leased Premises, the
unpaid rent that had been earned at the time of the termination of this Lease
Agreement, and the unpaid rent that would have been earned from the date of
termination until the time this Lease Agreement would have expired but for the
termination. All such amounts shall be immediately due and payable from
Lessee.
28.Rules and Regulations
The rules and regulations of the Building currently in force, a copy of which is
attached to this Lease Agreement as
Exhibit B , and all those that may be adopted by
Lessor, a copy of which shall be given Lessee, are made a part of this Lease
Agreement.
29. Subordination
This Lease Agreement and all rights of Lessee under this Lease Agreement shall
be subordinate to all ground Leases that now exist or may in the future be executed or
amended affecting the building or the land upon which the building is situated, or both,
and to the liens of any and all mortgages or deeds of trust that now exist or may in the
future be executed or amended affecting the Leased Premises, the Building, or the land
upon which the Building is situated. Lessee agrees to execute and deliver to Lessor, on
demand, and without any expense to Lessor, any instrument that may be necessary or
proper to subordinate this Lease Agreement. If Lessee fails to do so, Lessor, in addition
to any other remedies available, may execute, acknowledge, and deliver all such
instruments as Lessee's attorney-in-fact and in Lessee's name. Lessee irrevocably
constitutes and appoints Lessor, its successors and assigns, as Lessee's attorney-in-
fact for that purpose.
30. Eminent Domain
A. Eminent domain proceedings resulting in condemnation of a part of the
Leased Premises, but leaving the remaining portion of the Leased Premises
usable by Lessee for the purpose for which it was intended, will not terminate this
Lease Agreement unless Lessor, at its option, terminates this Lease Agreement
by giving written notice of termination to Lessee. If Lessor does not exercise such
option, the Lease Agreement for the remaining portion that is usable shall
continue, and the rent shall be reduced proportionately.
B. Eminent domain proceedings resulting in the condemnation of the entire
building, including the Leased Premises, shall terminate this Lease Agreement
as of the date of the physical taking of the Leased Premises. All awards for
damages to the respective interests of Lessor and Lessee shall be paid to
Lessor, except for specific items of damages that under the law must be paid to
Lessee.
31. Severability
The invalidity of any portion of this Agreement will not and shall not be deemed to
affect the validity of any other provision. If any provision of this Agreement is held to be
invalid, the parties agree that the remaining provisions shall be deemed to be in full
force and effect as if they had been executed by both parties subsequent to the
expungement of the invalid provision.
32. No Waiver
The failure of either party to this Agreement to insist upon the performance of any
of the terms and conditions of this Agreement, or the waiver of any breach of any of the
terms and conditions of this Agreement, shall not be construed as subsequently waiving
any such terms and conditions, but the same shall continue and remain in full force and
effect as if no such forbearance or waiver had occurred.
33. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of _____________.
34. Notices
Any notice provided for or concerning this Agreement shall be in writing and shall
be deemed sufficiently given when sent by certified or registered mail if sent to the
respective address of each party as set forth at the beginning of this Agreement.
35. Attorney’s Fees
In the event that any lawsuit is filed in relation to this Agreement, the
unsuccessful party in the action shall pay to the successful party, in addition to all the
sums that either party may be called on to pay, a reasonable sum for the successful
party's attorney fees.
36. Mandatory Arbitration
Any dispute under this Agreement shall be required to be resolved by binding
arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party
shall select one arbitrator and both arbitrators shall then select a third. The third
arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by
the rules of the American Arbitration Association then in force and effect.
37. Entire Agreement
This Agreement shall constitute the entire agreement between the parties and
any prior understanding or representation of any kind preceding the date of this
Agreement shall not be binding upon either party except to the extent incorporated in
this Agreement.
38. Modification of Agreement
Any modification of this Agreement or additional obligation assumed by either
party in connection with this Agreement shall be binding only if placed in writing and
signed by each party or an authorized representative of each party.
WITNESS our signatures as of the day and date first above stated.
____________________ ________________________
(Name of Lessor)(Name of Lessee)
By:____________________________ By:_______________________________
_________________________________________________
(Printed name & Office in Corporation) (Printed name & Office in Corporation
_______________________________________________
(Signature of Officer) (Signature of Officer)
Attach Exhibits
(Acknowledgment form may vary by state)