Fill and Sign the Paying No Rent Form

Lease Agreement of Store with Lessee Paying no Rent the First Year and with an Option to Renew or Purchase at the End of One Year Lease Agreement made on the __________________________ (date) , between _______________________________ (Name of Lessor) , a _____________________ ( name of state) corporation, with its principal office located at ________________________________ ____________________________________________________________________________ (street address, city, county, state, zip code , referred to herein as Lessor , and ______________________________ (Name of Lessee) , a corporation organized and existing under the laws of the _________________________ ( name of state) , with its principal office located at ____________________________________________________________________ _____________ (street address, city, county, state, zip code) , referred to herein as Lessee . Whereas, Lessor is the owner of the developed property described below, and desires to lease the property for use as a retail hardware store; and Whereas, Lessee desires to lease said property for the purposes of operating a retail hardware store; 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 Lessor hereby leases to Lessee the Premises located in the County of _____________________________ (name) , State of __________________________ (name) , described upon Exhibit A attached hereto and made a part hereof and located at ___________ ____________________________________________________________________________ (street address, city, county, state, zip code) , including the building and other improvements, which property and improvements are hereafter referred to as the Premises. 2. Purpose A. Lessee shall use the Premises for the exclusive purpose of conducting a retail hardware business on the Premises and shall conduct the business during all usual working hours for related business activities, except for periods when prevented by acts of God or other causes beyond the control of Lessee . B. Lessee shall comply with all governmental regulations affecting the operation of the Premises. 3. Restrictions on Use A. Lessee shall not conduct any activity that is unlawful, ultra hazardous, or that would increase the premiums for liability insurance on the Premises . B. All advertising material that is to be affixed to the exterior portions of the building by Lessee shall be submitted to Lessor for approval prior to installation, and all material installed shall be removed by Lessee on surrender of the Premises . 4. Reservations by Lessor Lessor shall have the right to enter the Premises to inspect the Premises and make repairs, alterations, or modifications as may be required. 5. Initial Term of Lease The initial term of the Lease shall begin on ____________________________ (date) , and end on 12:01 A.M. on ____________________________ (one year from date) , unless renewed under the provisions of Section 18 of this Lease Agreement. 6. Rent Lessee shall pay no rent for the initial term of the Lease. 7. Damages A. Lessee shall give notice to Lessor of damages caused by natural disasters (e.g., tornado) _____________________________, and Lessor shall repair the damages within _________ (number) days, during which time Lessee shall be entitled to an abatement on the rental. If more than _____________ ( percentage of Premises destroyed by natural disaster) of the Premises is destroyed by a natural disaster, Lessor shall have the option of refusing to repair or replace the Premises , and Lessee's duty to pay rental under this Lease Agreement shall terminate as of the date of the disaster. B. Lessee shall be liable for the costs of all damages caused by the negligence of Lessee, and there will be no abatement of rent or termination of this Lease Agreement for these damages. 8. Utilities Lessee shall contract for all utility services required on the Premises in the name of Lessee and shall be liable for payment for all utility services received. 9. Taxes A. Lessor shall pay all ____________ (current year) real property taxes and assessments levied on the Premises. Beginning in ____________ (following year) , Lessee shall pay all real property taxes and assessments levied on the Premises B. Lessee shall pay all personal property taxes and assessments and all business taxes and license fees. 10. Assignment and Sublease Lessee shall not assign this Lease Agreement or sublet the Premises to another party without the express written approval of Lessor. 11. Repairs, Alterations and Modifications A. Lessee shall be responsible for all repairs to the common areas, accesses, service entrances, parking areas, and the exterior of the building, all repairs necessitated by faulty quality of work in the construction of the building, and all repairs necessitated by casualty losses covered by casualty insurance provided in this Lease Agreement. Lessee shall also be responsible for all repairs required as a result of the negligent acts of Lessee or its agents and all repairs not required of Lessor. B. All normal maintenance of the Premises will be carried out by Lessee. C. Lessee may, at its expense, alter or modify the Premises to suit its needs, provided that written consent of Lessor has first been obtained. 12. Insurance Lessee shall carry fire and any other casualty insurance generally carried on a business of this nature on the Premises during the term of this Lease in an amount equal to 80% of the appraised value of the insured property, written by a reliable insurer in the name of Lessor and Lessee in proportion to their respective interests in the Premises . Lessee shall furnish liability insurance in the amounts of $1,000,000.00 for each injury to either employees or invitees on the business Premises , $3,000,000.00 for each accident or occurrence, and $100,000.00 for property damage. Lessor may purchase these policies and charge Lessee for the policies if Lessee fails to comply with this requirement. Lessor and Lessee , together and separately, waive any right of subrogation or any right in tort against the other party, its agents or assigns, for damages to the Premises or to persons in excess of the insurance policy provisions in this lease. 13. Bankruptcy Lessor shall have the option on thirty (30) days' notice to Lessee to terminate this Lease Agreement if Lessee files for voluntary bankruptcy, is placed in receivership, or has involuntary bankruptcy proceedings instituted against it by creditors. 14. Examination of Premises A. Lessee s shall examine the Premises prior to execution of this Lease Agreement and shall acknowledge that the Premises are in satisfactory condition at the time Lessee enters into possession. B. Lessor has made no representations to Lessee relating to the condition of the Premises except as specifically provided in this Lease Agreement. 15. Default and Forfeiture Lessor shall, on default with respect to any of the provisions of this Lease Agreement by Lessee , provide Lessee with written notice of any breach of the Lease Agreement terms or conditions. Lessee shall then have Ten (10) days to either correct the condition or commence corrective action if the condition cannot be corrected in Ten (10) days. If the condition cannot be corrected in Ten (10) days, Lessee shall have a reasonable time to complete the correction. Notwithstanding the foregoing, Lessor may elect to enforce the terms and conditions of this Lease Agreement by any other method available under the law, or Lessor may declare a forfeiture of this Lease Agreement by providing Ten (10) days' notice to Lessee of Lessor 's intent to do so. 16. HOLDING OVER A. Lessee shall pay to Lessor a monthly sum equal to the rent specified in this Lease plus 50% of such amount for each month that Lessee holds the Premises after expiration or termination of this Lease Agreement without authorization by Lessor . This sum shall be liquidated damages for the wrongful holding over. B. Lessee shall acquire no additional rights, title, or interest to the Premises by holding the Premises after termination or expiration of this Lease Agreement. Lessee shall be subject to legal action by Lessor to obtain the removal of Lessee in the event of any such holding over. 17. Remedies for Lessor A. Any and all remedies provided to Lessor for the enforcement of the provisions of this Lease Agreement are cumulative and not exclusive, and Lessor shall be entitled to pursue either the rights enumerated in this Lease Agreement or remedies authorized by law, or both. B. Lessee shall be liable for any costs or expenses incurred by Lessor in enforcing any terms of this Lease Agreement or in pursuing any legal action for the enforcement of Lessor 's rights. 18. Lessee’s Option to Extend or Renew Provided that Lessee is not in default under this Lease Agreement during the original term of this Lease Agreement, Lessee shall have the option to extend this Lease Agreement for one additional term of ________ (number) years by providing Lessor with thirty (30) days' prior written notice. The extended term shall be on the same terms and conditions of this Lease Agreement, except for the provisions regarding basic monthly rent. Basic monthly rent applicable to the extended term shall be at the then established market rate for similar facilities in the area, but in no event less than $____________ per month. 19. Option of Lessee to Purchase A. Lessor grants to Lessee the option to purchase the Premises on or before the end of the first term, i.e., ______________________ (date) . The purchase price shall be $_____________ due at closing. Closing shall take place within sixty (60) days of the exercise of this Option by Lessee. In order to exercise this Option, Lessee must give Lessor sixty (60) days written notice of his intent to exercise the Option. Lessor shall convey the Premises by warranty deed, free and clear of all liens and encumbrances, except those that Lessee may have created or suffered and excepting any taxes, assessments, or charges that may have become a lien against the Premises since the date of this Lease Agreement. The deed shall be accompanied by a certificate of title showing good and marketable title. On the delivery of the above-described deed and certificate of title, this Lease Agreement shall become void. B. Lessor grants to Lessee the option to purchase the Premises on or before the end of the first term, i.e., ______________________ (date) through owner financing with a purchase price of $______________. Said purchase price shall be payable by a Promissory Note from Lessee to Lessor with said amount bearing interest at the rate of ______% over ____ years with monthly payments of $____________. Said Promissory Note shall be secured by a Purchase Money Deed of Trust, substantially in the form shown in Exhibit B. Said Promissory Note shall be substantially in the form as shown in Exhibit C. Closing shall take place within sixty (60) days of the exercise of this Option by Lessee. In order to exercise this Option, Lessee must give Lessor sixty (60) days written notice of his intent to exercise the Option. Lessor shall convey the Premises by warranty deed, free and clear of all liens and encumbrances, except those that Lessee may have created or suffered and excepting any taxes, assessments, or charges that may have become a lien against the Premises since the date of this Lease Agreement. The deed shall be accompanied by a certificate of title showing good and marketable title. On the delivery of the above-described deed and certificate of title, this Lease Agreement shall become void. 20. Waivers Waiver by Lessor of any breach of any covenant or duty of Lessee under this Lease is not a waiver of a breach of any other covenant or duty of Lessee , or of any subsequent breach of the same covenant or duty. 21. Governing Law This Lease Agreement shall be governed by, construed, and enforced in accordance with the laws of ________________________ (name of state) . 22. Entire Agreement This Lease Agreement shall constitute the entire agreement between the parties. Any prior understanding or representation of any kind preceding the date of this Lease Agreement shall not be binding upon either party except to the extent incorporated in this Lease Agreement. 23. Modification of Agreement Any modification of this Lease Agreement or additional obligation assumed by either party in connection with this agreement shall be binding only if evidenced in a writing signed by each party or an authorized representative of each party. 24. Binding Effect This Lease Agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors, and assigns of the parties. WITNESS our signatures as of the day and date first above stated. ________________________________ _______________________________ (Name of Lessor) (Name of Lessee) By: _____________________________ By: ____________________________ (Printed or typed name) (Printed or typed name) ______________________________ _______________________________ (Name and Office in Corporation) (Name and Office in Corporation) ACKNOWLEDGEMENTS Before Notary Public