Fill and Sign the Lease of Industrial Plant and Equipment Form

Lease of Industrial Plant and Equipment 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 . Whereas, Lessor is the sole owner of an industrial facility and equipment, described below, which it desires to lease to Lessee; and Whereas, Lessee is a corporation that desires and is empowered to lease an industrial facility and equipment for (description of business purpose) ___________ ______________________________________________________________________ __________________________________________________________________; and Whereas, the parties desire to enter into a lease agreement to define their respective rights, duties, and liabilities concerning such a lease; Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Description of Premises and Purpose A. Lessor leases to Lessee property located at ________________________ _______________________________________________ (street address, city, state, zip code) , together with improvements on such property (said property and improvements being hereinafter referred to as the Premises ). The Premises are described in Exhibit A and comprise an industrial plant, as well as all equipment presently located on the Premises as described in Exhibit B , both Exhibits being attached to and made a part of this Lease Agreement. B. The Premises and facilities will be used by Lessee for the purpose of (description of business purpose) __________________________________ ________________________________________________________________ ________________________________________________________________. 2. Term The term of the lease shall be _____ (number) years, commencing __________________ (date) and terminating on ___________________ (date) at _________ (time) , unless sooner terminated under the provisions of this Lease Agreement. 3.Rental A. Lessee shall pay a minimum rental of $__________ per year during the term of this Lease Agreement, payable in advance in monthly installments of $__________, due on the _____day of each month, except that the first installment, to be $__________, will be due and payable on the execution of this Lease Agreement. B. The above-stated minimum rental will be supplemented on a monthly basis by an additional rental equal to _____% of the gross sales of Lessee, less the amount of the minimum monthly rental paid for the month. Net additional rent due for each month will be payable as set forth in Section 4 below. C. The term gross sales shall mean the total dollar amount received by Lessee from all sales, either cash or credit, whether actually paid for or not, and all charges for services, alterations, or repairs, less all sales taxes on the merchandise, services, alterations, or repairs, and all refunds actually made to customers. 4. Records and Accounting A. Lessee shall maintain a complete set of books, records, and accounts of all business transactions conducted by Lessee and shall retain these records on the Premises and make them available for inspection by Lessor or the authorized agent of Lessor at any reasonable time during the business day. B. Lessee shall furnish to Lessor monthly certified statements containing gross sales figures as defined in Section 3 above. The statements will be delivered by the ___ day of each month covering the calendar month immediately preceding and shall be accompanied by a payment from Lessee of the net additional rental due, if any. C. Lessor may require that the records of Lessee be audited at the conclusion of each business year of Lessee, or more often if Lessor disagrees with the certified statements furnished by Lessee. The costs of these audits will be paid by Lessor unless the certified statement is found inaccurate, in which case Lessee shall bear all costs of the audit and immediately pay any additional rental due. The acceptance by Lessor of the additional rental payments determined due by the certified statements shall not be deemed an admission by Lessor of the accuracy of the statements. 5. Conditions of Premises A. Lessee has examined and knows the condition of the Premises and has received the Premises and equipment in good condition and working order. B. Lessee shall not hold Lessor liable for any latent defects on the Premises, and Lessor only warrants that the equipment is guaranteed in the same manner as provided by the equipment manufacturers. 6. Repairs A. Lessee shall keep the Premises in a clean and operational condition, repair all damages to the Premises or to equipment occasioned by the fault or negligence of Lessee or the employees of Lessee, and will maintain all equipment in good condition. B. Lessor shall make all repairs to the Premises or equipment not occasioned by negligence or fault of Lessee and may enter the Premises at any reasonable hour to inspect them and the equipment to insure that all necessary repairs and maintenance functions are being performed, or to make the repairs required of Lessor. 7. Alterations and Modifications Lessee shall obtain the written approval of Lessor prior to making any alterations or modifications to the Premises or to any equipment on the Premises. All approved and completed alterations or modifications shall become part of the Premises, and title to such alterations and modifications shall vest in Lessor. The alterations or modifications undertaken by Lessee shall be performed and completed in a competent and skillful manner. 8. Restrictions on Use Lessee shall not use the Premises or equipment for any unlawful or immoral purpose and shall not conduct any activity on the Premises that might increase the danger from fire or the rate of insurance on the Premises. 9. Assignment and Sublease Lessee shall not assign its rights and duties under this Lease Agreement or sublease any part of the Premises without the prior, express, and written consent of Lessor. The approval of any sublease by Lessor shall not relieve Lessee of liability for the performance of all the terms and conditions of this Lease Agreement. 10. Taxes A. Lessor shall pay all real property taxes levied on the Premises up to and including $__________ per year. This figure is based on an assessed valuation of $__________ for the real property in (year) . During the term of this Lease Agreement, Lessee shall pay all real property taxes in excess of the amount set forth above based on current valuation as it may increase from year to year. B. The parties shall each pay a share of all personal property taxes levied on the Premises and a share of any real property taxes levied against alterations to or modifications of the Premises according to the schedule attached to this Lease Agreement as Exhibit C attached to and made a part of this Lease Agreement. 11.Utilities Lessee shall arrange for and bear the cost of all utility services furnished to the Premises during the term of this Lease Agreement. 12. Default A. If Lessee defaults in the payment of rent or any part of the rent within ______ (number) days after due notice of the amount of rent owing has been mailed by Lessor to Lessee, or if Lessee defaults in the performance of any other term or condition of this Lease Agreement and fails to correct the default or commence corrective action within ______ (number) days after receipt of written notice from Lessor describing the default, Lessee will be considered to have breached this Lease Agreement. B. In the event of Lessee's default, Lessor shall have the right to: 1. Reenter the Premises without demand or further notice, remove any property of Lessee found on the Premises, perform such maintenance and repairs as may be required, and relet the Premises. Reentry shall not release Lessee from the obligation to make the minimum monthly payments reserved as rental, at the times and in the manner set forth in this Lease Agreement. The proceeds derived from any reletting shall be applied first to the payment of any expenses incurred in reletting, then to the payment of rents as they become due, and finally towards the fulfillment of other terms and conditions of this Lease Agreement, with the balance, if any, to be paid over to Lessee. Lessee shall pay to Lessor any loss or difference of rent for the remainder of the term, if Lessor shall recover possession of the Premises and is unable to relet them under the terms provided in this Lease Agreement; or 2. Terminate this Lease Agreement, such termination to be effective _____ (number) days following receipt by Lessee of written notice of intention to terminate. 13. Surrender and Holder Over A. Lessee shall surrender the Premises to Lessor on the expiration or termination of this Lease Agreement. At the time of surrender, the Premises shall be in the same condition as when received, normal wear and tear excepted. B. Lessee shall not make any claim to the Premises against the interest of Lessor. If Lessee holds the Premises after termination of this Lease Agreement, a tenancy from month-to-month shall be created by such holding at a rental of $______________ per month. The acceptance of the rental by Lessor will not extend the term of this Lease Agreement in any manner. 14. 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. 15. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of ___________. 16. 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. 17. 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. 18. 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. 19. 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. 20. 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. 21. Assignment of Rights The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party. 22. 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:_______________________________ ___________________________ ____________________________ (Printed name & Office in Corporation) (Printed name & Office in Corporation _______________________________________________________ (Signature of Officer) (Signature of Officer) (Acknowledgment form may vary by state) Attach Exhibits