Commercial Lease & Bond Agreement

COMMERCIAL LEASE & BOND AGREEMENT

This Commercial Lease & Bond Agreement ("Agreement") is made and entered into as of the Effective Date set forth below by and between Landlord Name: with principal address: and Tenant Name: with principal address: .

RECITALS

WHEREAS, Landlord is the fee owner or authorized agent of the commercial real property commonly described as: (the "Premises"); and

WHEREAS, Tenant desires to lease the Premises from Landlord for the conduct of Tenant's commercial business and to procure or deliver a surety bond or security instrument to secure Tenant's obligations under this Agreement; and

WHEREAS, Landlord agrees to lease the Premises to Tenant upon and subject to the terms, covenants and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereby agree as follows:

1. LEASE TERM

1.1 Term. The lease commences on and expires on unless earlier terminated in accordance with this Agreement. The period between such dates is referred to herein as the "Term."

2. PREMISES AND USE

2.1 Premises. Landlord leases to Tenant, and Tenant accepts, the Premises described in the Recitals for the Permitted Use defined below.

2.2 Permitted Use. Tenant shall use the Premises solely for: and for no other purpose without Landlord's prior written consent, which may be withheld for reasonable business reasons.

3. RENT

3.1 Base Rent. Tenant shall pay to Landlord base rent in the amount of $ per month, payable in advance on the first day of each calendar month at Landlord's address set forth above or at such other place designated by Landlord in writing.

3.2 Additional Charges. Tenant shall pay its proportionate share of any real property taxes, utilities, common area maintenance, insurance premiums and other charges specifically allocated to Tenant pursuant to this Agreement, as further described in Section 10.

4. SECURITY BOND; SURETY

4.1 Bond Requirement. As security for Tenant's full and faithful performance of all of its obligations under this Agreement, Tenant shall deliver to Landlord, on or before the Commencement Date, a security instrument consisting of either (a) a cash security deposit in the amount of $ or (b) an executed commercial surety bond in the penal sum of $ (the "Bond"), issued by a surety company acceptable to Landlord.

4.2 Form and Delivery. If the Bond is elected, Tenant shall cause the surety to deliver to Landlord a fully executed original Bond and an executed power of attorney or other proof of authority of the signatory. Surety name: . Bond effective date: .

4.3 Obligations Secured. The Bond or deposit shall secure performance of Tenant's obligations under this Agreement, including payment of rent, repair of damage, removal of Tenant's property, indemnity obligations and any other amounts due. Landlord may make claim against the Bond or deposit upon Tenant's default as provided herein.

4.4 Bond Claim Procedures. A claim against the Bond may be made upon written notice to Tenant and to the named Surety, specifying the nature and amount of Tenant's default. If Tenant fails to cure within the cure period provided in Section 11, Landlord may draw on the Bond to cure monetary defaults or to reimburse Landlord for actual, documented costs incurred as a result of Tenant's breach. Such drawings shall not be exclusive of other remedies available at law or equity.

4.5 Release of Security. Provided Tenant has fully complied with all obligations under this Agreement and has surrendered the Premises in the condition required by this Agreement, Landlord shall release any cash security and shall execute and deliver any documents reasonably necessary to effect release of the Bond within thirty (30) days after Tenant's delivery of written demand and evidence of compliance.

5. MAINTENANCE; ALTERATIONS

5.1 Maintenance and Repairs. Tenant shall, at its sole cost and expense, keep the Premises and all Tenant-installed equipment and systems in good repair and condition, ordinary wear and tear excepted. Tenant shall promptly make all repairs necessary to remedy any damage caused by Tenant, its agents, employees or invitees.

5.2 Alterations. Tenant shall not make any material alterations, additions or improvements to the Premises without Landlord's prior written consent, which shall not be unreasonably withheld when improvements do not adversely affect the structural integrity or systems of the building. All permitted alterations shall be performed in a workmanlike manner and in compliance with applicable laws.

6. INSURANCE; INDEMNITY

6.1 Insurance. Tenant shall, at Tenant's sole cost, maintain commercial general liability insurance, property insurance as required, and such other policies as Landlord may reasonably require, with limits commensurate with Tenant's operations and naming Landlord as an additional insured for liability coverages to the extent permitted by law.

6.2 Indemnity. Tenant shall indemnify, defend and hold harmless Landlord, its officers, agents and employees from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of Tenant's use or occupancy of the Premises, except to the extent caused by Landlord's gross negligence or willful misconduct.

7. DEFAULT & REMEDIES

7.1 Events of Default. The following shall constitute events of default by Tenant: (a) failure to pay rent within five (5) days after written notice of nonpayment; (b) failure to perform any other covenant within thirty (30) days after written notice, provided such default is curable; (c) insolvency, bankruptcy or assignment for the benefit of creditors by Tenant; (d) abandonment of the Premises.

7.2 Remedies. Upon an event of default, Landlord shall have all remedies available at law and in equity, including right to terminate this Agreement, recover damages, perform Tenant's obligations and make claim against the Bond or security deposit to the extent permitted herein. Acceptance of rent after default shall not constitute a waiver of Landlord's rights unless expressly stated in writing.

8. ASSIGNMENT & SUBLETTING

Tenant shall not assign this Agreement or sublet the Premises, in whole or in part, without Landlord's prior written consent, which consent shall not be unreasonably withheld for an assignee or subtenant that demonstrates financial capability and a use consistent with the Permitted Use. Any assignment or subletting without Landlord's consent shall be void and a default.

9. TAXES & UTILITIES

Tenant shall be responsible for payment of all utilities and for Tenant's proportionate share of real property taxes and assessments to the extent provided in this Agreement. Any dispute as to allocation shall be resolved in accordance with the apportionment method set forth herein.

10. NOTICES

All notices required or permitted hereunder shall be in writing and shall be deemed given when delivered personally or sent by certified mail, return receipt requested, or by nationally recognized overnight courier, to the addresses set forth below or to such other address as a party may designate by prior written notice:

11. DEFAULT CURE; REMEDIAL RIGHTS

11.1 Cure Periods. Unless otherwise specified, Tenant shall have thirty (30) days after receipt of written notice to cure any non-monetary default and five (5) days to cure any monetary default, provided Tenant commences cure within such period and diligently prosecutes completion.

11.2 Landlord's Performance. If Tenant fails to perform any obligation and such failure continues beyond the applicable cure period, Landlord may perform such obligation at Tenant's expense and may draw on the Bond or security deposit to reimburse itself for reasonable documented costs, provided Landlord gives Tenant written accounting of such costs.

12. GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the state in which the Premises are located, without regard to conflict of law principles. The parties agree that any dispute arising under this Agreement shall first be addressed in good faith through negotiation and, if unresolved, may be submitted to mediation prior to pursuit of litigation.

13. ENTIRE AGREEMENT; AMENDMENT; SEVERABILITY; WAIVER

13.1 Entire Agreement. This Agreement, including any exhibits or riders attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.

13.2 Amendment. No amendment or modification of this Agreement shall be effective unless in writing and signed by both parties.

13.3 Severability. If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect.

13.4 Waiver. No waiver by either party of any breach shall constitute a waiver of any other breach or of the same breach on a future occasion unless the waiver is in writing and signed by the waiving party.

14. COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures delivered electronically or by facsimile shall be effective as originals.

15. ADDITIONAL PROVISIONS

CERTIFICATIONS

Each person signing below represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of the party for whom the signature is made, that the execution and delivery and performance of this Agreement by such party have been duly authorized, and that this Agreement constitutes a valid and binding obligation of such party enforceable in accordance with its terms.

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