Fill and Sign the Lease Commercial Building Form

Lease of Commercial Building with Lessor to Construct Building 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 and Use of Premises Lessor hereby leases to the Lessee all those certain lands (the boundaries of which are outlined in ___________ (color) on the drawing attached to this Lease as Exhibit A located at ____________________________________________________________________________ (street address, city, state, zip code) , and more particularly described in Exhibit B attached hereto and made a part hereof. Also leased is a _____ (number) -story building to be constructed by the Lessor at the location outlined in ___________ (color) on the attached Exhibit C . The building shall have a frontage of __________ (number) feet by a uniform depth of __________ (number) feet, containing ___________ (number) square feet of floor space. The entire leased real property and improvements on the real property (all of which is hereinafter called the Premises ) shall be for the exclusive use of the Lessee, its agents, servants and invitees for any lawful purpose, including but not limited to (description of use) ___________________________________________________________________________. 2. Term and Rent The term of this Lease shall be ______ (number) years, commencing __________________ (date) and terminating _________________ (date) . The Lessee shall pay as rent $ _____________ per annum in equal monthly installments of $____________ each, in advance on the first day of each month during the term of this Lease. 3. Occupancy; Failure to Give Possession A. Lessor shall deliver actual possession of the Premises to the Lessee ready for occupancy on __________________ (date) . If such possession is delivered to the Lessee prior to that date, the Lessor shall be paid rent on a pro-rata basis at the rate provided in Section 2 of this Lease. This provision, however, shall not affect or change the termination date of this Lease or any renewal periods fixed in this Lease. B. If such possession is not delivered on ________________ (date) , but is delivered prior to _________________ (date) , no rent or other obligation of the Lessee under this Lease shall begin to accrue until _______ (number) days after such delivery. The date of expiration of this Lease, specified above, shall not be postponed because of failure to deliver such possession on the date agreed. If the Premises are not so delivered on or before __________________ (date) , the Lessor shall pay to the Lessee $___________ as liquidated damages for the breach of this covenant and not as a penalty, or in the alternative, the Lessee may refuse to accept such payment and may terminate this Lease by written notice to the Lessor. If possession of the Premises is not delivered to the Lessee on or before __________________ (date) , due to strikes, acts of God, or any causes entirely beyond the Lessor's control, the right of the Lessee to terminate this Lease for non-completion of the Premises shall be postponed to ________________ (date) , and the Lessor shall not be required to pay $___________ to the Lessee. The preceding sentence shall not in any way limit the Lessee's right to terminate this Lease at any time after __________________ (date) . 4. Repairs; Remedies of Lessee for Lessor’s Default; Heat; and Utilities A. Lessee shall make necessary minor repairs to the interior of the Premises. The Lessor shall make all other repairs including structural repairs, repairs to the exterior of the Premises including the roof, skylights, sidewalks and parking areas, and repairs to the electrical, plumbing, heating, air-conditioning, sprinkler and hot water systems. The Lessor shall also make any repairs necessitated by water seepage or by other causes not under the Lessee's control. The Lessor shall also make any repairs or changes which may be necessary to make the Premises and the use contemplated in this Lease comply with applicable laws, ordinances, orders or regulations of any federal, state, county, or municipal authority now or in the future in effect. B. If the Lessor shall fail, within a reasonable time after a request by Lessee, to make such repairs or changes, or repairs necessitated by fire or other casualty, then (a) the Lessor shall be liable for any damages to property or loss consequently sustained by the Lessee, and (b) the Lessee may have such repairs or damages made at the expense of the Lessor. C. The Lessee, whenever the weather shall require, shall heat the Premises. The Lessee shall pay all charges for water, electricity and gas or oil supplied to the Premises. Meters shall be installed by the Lessor to measure the Lessee's use of such utilities. 5. Assignment or Subletting Lessee may assign or sublet the Premises or any part of the Premises for the purposes permitted in this Lease, or for any other lawful business not extra-hazardous on account of fire, without relieving the Lessee from the obligations under this Lease. 6. Destruction by Fire or other Casualty If during or prior to the terms granted by this Lease, the Premises shall be damaged or destroyed by fire or other casualty, the Lessor shall repair and restore the same at the Lessor's expense and as promptly as possible. If such damage or destruction: (a) shall be so extensive that the cost of repair or restoration would be in excess of ______ % of the value of the Building (exclusive of land) when restored and (b) shall occur at a time when the unexpired term of this Lease shall be less than ______ (number) years, then this Lease shall terminate unless, within _______ (number) days after such damage or destruction, the Lessee shall have elected to exercise one or more privileges of extension, given the Lessee by this Section or Section 9 of this Lease, and the aggregate of such unexpired and extended terms shall be at least _______ (number) years. If at the time of the injury or destruction mentioned above in (a), the aggregate unexpired and renewal terms shall be less than _______ (number) years, then the Lessee shall be privileged to extend the then current term for a period of ______ (number) years, as stated below. If the Lessee shall elect to take such ______ (number) year extension, then (1) the Lessor shall repair or restore the demised Premises at the Lessor's expense and as promptly as possible, (2) the ______ (number) -year extension shall begin ______ (number) days after the Lessor has completed such repairs or restoration, and (3) the Lessee have no right of extension or renewal other than the ______ (number) -year extension. In the event of termination under this Paragraph, all rent shall be adjusted and apportioned at the time of such destruction; otherwise, the rent shall be abated in an amount corresponding with the time during which and the extent to which the Premises have been untenantable. 7. Right of Lessor to Enter; For Rent Signs Lessor may enter the Premises during all reasonable business hours to inspect the same or to exhibit the Premises to prospective purchasers or Lessees. During the _______ (number) months immediately preceding the final expiration of the term granted by this Lease, the Lessor may affix a notice, not greater than _______ (number) square feet in area, that the Premises are for rent, to a suitable part of the Premises exclusive of doors and windows and so as not to obstruct the Lessee's signs. 8. Quiet Enjoyment Lessor warrants and covenants that the Premises may be used for the purposes contemplated in this Lease throughout the term of this Lease and any extensions. The Lessee shall quietly enjoy the Premises for the full term and for all extensions provided for in this Lease. 9. Extension of Term Lessee, at its option, shall be entitled to ______ (number) successive extensions of this Lease to be exercised separately, each such extension to be for a period of _______ (number) years and to be upon the same terms, covenants and conditions as those of this Lease. Unless the Lessee shall have given the Lessor at least _______ (number) days' notice of its intention not to extend this Lease at its expiration or at the expiration of any extension period referred to in this Lease, except the last extension period, the Lessee shall be considered as having elected to avail itself of the option from term to term, without further notice to the Lessor. Furthermore, the Lessee may, at any later time during its tenancy under this Lease, elect to exercise this option as to any one or more of such extensions by giving notice of such election to the Lessor. 10. Title of Lessor Lessor covenants and warrants it has full right and lawful authority to enter into this Lease for the full term granted and for all extensions provided in this Lease, and that it has a good and marketable title to the Premises, free and clear of all occupancies, tenancies, mortgages, liens, and other encumbrances except the following: (description of encumbrances) ______________________________________________________________ ____________________________________________________________________________. 11. Subordination This Lease shall be subject and subordinate to the lien of any first mortgage now against the Premises or which may in the future be placed against the demised Premises, provided: A. That the holder of the mortgage shall not be entitled to terminate this Lease, or any extension of it, by foreclosure or other means, provided the Lessee or its successors or assigns shall not be in default under this Lease beyond any period given the Lessee to cure such default; B. That the proceeds of any insurance on the mortgaged premises, payable by reason of fire or other casualty so insured, may be applied first, in payment of the cost of restoring the Premises after such injury before any part of such proceeds or award may be applied on account of any part of the mortgage debt; and C. That the lien of such mortgage shall not cover any of Lessee's fixtures, alterations or improvements which, by law or the terms of this Lease, Lessee is permitted to remove from the demised Premises. 12. Changes and Alterations Lessee may from time to time, at its expense, paint and decorate the Premises and make such nonstructural changes, alterations, additions, and improvements as will, in the judgment of the Lessee, better adapt the same for the purpose of its business. The Lessee may make structural alterations or additions only with the Lessor's approval, which approval the Lessor will not unreasonably withhold or delay. 13. Surrender On the termination of the Lessee's occupancy, the Premises shall be surrendered in the condition in which the Lessee is required by this Lease to maintain the same. If the Lessee shall for any reason remain in possession after the expiration of either the term granted by this Lease or any renewal or extension of it (except pursuant to such renewal or extension), or after the date specified in any notice of termination given by either the Lessor or Lessee, such possession shall be as a month-to-month Lessee during which time the Lessee's liability shall be limited to payment of a monthly rent equal to that accruing during the last month of the preceding term. 14. Removal of Lessee’s Fixture Lessee shall have the privilege at any time on or before vacating the Premises of removing any or all of its personal property, equipment, and fixtures and shall repair any damage caused by such removal. 15. Notice to Lessee of Default in Payment of Rent If any rent shall become due and unpaid, the Lessor may give the Lessee notice, and only if the Lessee shall fail to remedy such default within ______ (number) days after receipt of such notice shall it be lawful for the Lessor to maintain proceedings for the recovery of possession of the Premises. 16. Change in Ownership of Leased Property If the ownership of the Premises or the name or address of the party entitled to rent under this Lease shall be changed, the Lessee may, until receipt of proper notice of such change, continue to pay the rent accrued and to accrue under this Lease to the party to whom and in the manner in which the last preceding installment of rent was paid, and each such payment shall to the extent of the payment exonerate and discharge the Lessee. 17. Default of Lessor in Payment of Mortgage Obligations and other Changes If Lessor shall fail to pay, within _____ (number) days after due, the principal, interest, or installment of either, on any mortgage paramount to this Lease, or any installment of taxes, easements or water charges affecting the Premises, or shall fail promptly to remove any other lien or charge which could jeopardize the Lessee's right to possession as granted by this Lease, the Lessee may pay the items in question. Any such payment shall entitle the Lessee to be subrogated to the lien or charge of the item so paid in addition to the rights given the Lessee under Section 18 of this Lease. If the Lessor shall fail to carry out any obligation on the Lessor's part in this Lease contained, the Lessee may, after reasonable notice or without notice if in the Lessee's judgment an emergency shall exist, perform such obligation at the expense of the Lessor. 18. Reimbursement of Lessee for Advances on Account of Lessor If Lessee shall make any payment or advance at the expense or for the account of the Lessor, pursuant to any provisions of this Lease, the Lessee shall be entitled to reimbursement from the Lessor. The Lessee may apply such claim against any subsequent installment of rent and, if not reimbursed at the expiration of the term granted by this Lease or any extensions, may remain in possession of the Premises until completely reimbursed. 19. 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. 20. Plate Glass Breakage Notwithstanding anything in this Lease to the contrary, the Lessor shall repair and replace plate glass damaged as a result of casualty covered under the Lessor's policy of fire insurance with extended coverage. 21. Fire Insurance Lessor will insure the Premises against fire loss by policies with extended coverage; the Lessee shall not be liable for injury to the Premises by fire or other casualty so covered by this type of insurance, no matter how caused, it being understood that in case of such injury the Lessor shall look solely to the insurer for reimbursement and not to the Lessee. 22. Compliance with Laws Lessee shall promptly execute and comply with all laws, ordinances, regulations and requirements of any or all federal, state and municipal authorities having jurisdiction over the manner in which the Lessee's business is conducted, but only in so far as these laws, regulations, ordinances, and requirements are violated by the conduct of the Lessee's business. 23. Signs Lessee may, upon obtaining any necessary permits from governmental authorities, erect and maintain at its own expense, from the date of execution of this Lease throughout the duration of this Lease, signs of such dimensions and materials as it may desire. 24. New Construction by Lessor Lessor shall begin promptly the work called for in the specifications, attached as Exhibit D and shall complete same in a neat and workmanlike manner and in compliance with the specifications. The Lessee shall not be deemed to have received actual possession of the Premises within the meaning of Section 3 of this Lease until all such work has been satisfactorily completed, and the Lessor covenants that all such work shall be carried out in accordance with the requirements, orders and limitations of all local, state, or federal departments or bureaus having jurisdiction, and upon completion the Premises shall be in compliance with all governmental requirements for the use which the Lessee may make of them. All permits and licenses and the necessary insurance required in connection with the above work are to be obtained and paid for by the Lessor. 25. Work Specifications The specifications and drawing referred to above have been initialed by the parties for identification and are attached to and made a part of this Lease, designated Exhibits E and F . 26. Parking Facilities Lessor warrants that it will provide parking facilities at the location shown on the attached drawing to accommodate a minimum of ______ (number) cars. 27. Obligation of Lessee to Pay Share of Increase in Taxes A. During the __________ (year) calendar year of the Lessee's occupancy of its store building, and during each succeeding calendar year of its tenancy, the Lessee shall reimburse the Lessor in an amount equal to ______% of the amount by which the annual real estate taxes on the Premises covered by this Lease for such ______ (year) and subsequent calendar years may exceed $__________ plus the sum of such real estate taxes for the _______ (year) full year. B. If the tax assessment for the _________ (year) year is not based upon the full assessed value of the land and building, then the base tax shall be determined from the year in which the land and building are fully assessed and subsequently that assessment shall be used in determining the base tax figure. C. Promptly after the close of each calendar year, the Lessor shall submit to the Lessee a verified statement showing the computations upon which the Lessee's liability, if any, is based, together with the applicable receipted tax bills or copies of same and the Lessee's obligation pursuant to this paragraph shall be due and payable within ______ (number) days after delivery to the Lessee of such statement. In no event shall the Lessee's contribution be in excess of $____________ for any one calendar year. The Lessee shall not be responsible or liable for any assessments or special levies whatever, nor for any income or other taxes of the Lessor, its liability under this paragraph being limited to ordinary real estate taxes. D. Real estate taxes for any odd portion of a calendar year at the end of a Lease term shall be pro-rated on a per diem basis. 28. Enlargement of Building Lessee may require the Lessor to enlarge its building upon the area designated (designation of area to be enlarged) ____________________________________________ on the drawing attached to this Lease as Exhibit G . If such enlargement is called for, it shall be constructed in accordance with the plans and specifications to be provided by the Lessee. Upon receipt of such plans and specifications from the Lessee, the Lessor shall obtain bids for such work from not less than _______ (number) good and reputable contractors, all of whom shall have been previously approved by the Lessee. The Lessee may approve any one of the bids or decline all ______ (number) . Should the Lessee approve one of the bids, then the Lessor shall promptly undertake to have the building enlarged by the contractor whose bid was approved. Upon completion of such enlargement, the rental called for in this Lease shall be increased by an amount equal to $____________ for each square foot of additional space provided by the enlargement, or _______% of the amount of the approved bid, whichever is greater, and the then existing term of this Lease shall be automatically extended so as to terminate ______ (number) years later. The Lessor agrees that such work shall be conducted so as to interfere as little as possible with the Lessee's operation in its then existing store building; furthermore, the Lessor shall continue to provide the existing store with all utilities throughout such work. Such addition shall become part of the Premises as if originally leased under this Lease and shall be subject to all terms, covenants and conditions of this Lease. 29 . 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. 30. 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. 31. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of ______________. 32. 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. 33. 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. 34. 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. 35. 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. 36. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine. WITNESS our signatures as of the day and date first above stated. ____________________________ ____________________________ (Name of Lessor) (Name of Lessee) By:______________________________ By:_______________________________ ____________________________ _____________________________ (P rinted name & Office in Corporation) (P rinted name & Office in Corporation ____________________________ _____________________________ (Signature of Officer) (Signature of Officer) Acknowledgments Attach Exhibits