Fill and Sign the Rent Percentage Form

Lease of Retail Store with Additional Rent Based on Percentage of Gross Receipts Lease Agreement made on the ___ day of __________, 20___, between ____________ , Inc., a corporation organized and existing under the laws of the state of ______________, with its principal office located at __________________________ (street address, city, county, state, zip code), referred to herein as Lessor, and ________________ , Inc., a corporation organized and existing under the laws of the state of ______________, with its principal office located at _______________________________ (street address, city, county, state, zip code), referred to herein as Lessee. Whereas, Lessor is the sole owner of certain land, a building and other facilities located at __________________________________ (street address, city, county, state, zip code) and more fully described below, which it desires to lease to Lessee; and Whereas, Lessee is a corporation that desires and is empowered to lease said property; and Whereas, t he 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 Lessor hereby leases to Lessee the premises located at __________________________ (street address, city, county, state, zip code), including a building consisting of ________ (number) floors, and approximately _______ (number) square feet of floor space, together with all furniture, furnishings, and trade fixtures contained in such building, as described in Exhibit A attached to and made a part of this Lease Agreement, and the adjacent parking facilities consisting of _______ (number) square feet, sufficient to accommodate ________ (number) cars, all of which premises, building, furniture, furnishings, trade fixtures and adjacent parking facilities are hereby jointly and severally referred to as Premises. II. Purpose A. Lessee shall use the Premises for the exclusive purpose of conducting a _______________ (type of retail store) 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 . III. 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. IV. Restrictions on Competition Lessor shall not lease or sell any additional property within ________ (number) miles of the Premises to any party operating the same type of business as Lessee, the specific types of business activities precluded being: ________________________________________________ (description of business activities) . V. Reservations by Lessor A. Lessor shall have the right to enter the Premises at any reasonable hour to inspect the business records of Lessee, and Lessee shall make its books, accounts, and records available for such examination on reasonable demand. B. Lessor shall have the right to enter the Premises to inspect the Premises and make repairs, alterations, or modifications as may be required. VI. Term of Lease The term of this Lease shall be for ________ (number) years, commencing on the ___ day of __________, 20___, and terminating on the ___ day of __________, 20___, unless renewed under the provisions of Section XIII of this Lease Agreement. VII. Rental A. Lessee shall pay $_______________ basic rental for the term of the Lease for the Premises at the rate of $ __________ per month. The monthly rental payment shall be due on the ________ (e.g., fifth) day of each month for the succeeding month's rental. B. Lessee shall pay a percentage rental in addition to the basic rental provided above of ____ % of gross receipts, which shall be payable each month, ________ (e.g., 15) days after the close of the accounting month of Lessee. VIII. Damages A. Lessee shall give notice to Lessor of damages caused by natural disasters, 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 _________ (e.g., 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. IX. Utilities A. 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. B. Lessor shall arrange and grant all necessary easements to utility service suppliers to facilitate installation, maintenance, and repairing of utility service required by Lessee. X. Taxes A. Lessor shall pay all real property taxes and assessments levied on the Premises in an amount up to and including _____________ ( maximum dollar amount of annual real estate taxes to be paid by Lessor) per year. This amount was established by using _______ (year) as the base year for tax assessment. All taxes levied over and above that amount on the Premises as existing at the commencement of this Lease Agreement shall be paid by Lessee. Any increase in real property taxes or assessments occasioned by alteration or modification of or addition to the Premises shall be apportioned among the parties as follows: 1. Lessor ____%; 2. Lessee ____%. B. Lessee shall pay all personal property taxes and assessments and all business taxes and license fees. XI. Assignment and Sublease Lessee shall not assign this Lease Agreement or sublet the Premises to another party without the express written approval of Lessor, which approval will not be unreasonable withheld. XII. Repairs, Alterations, and Modifications A. Lessor 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. B. Lessee shall 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. C. All normal maintenance of the Premises will be carried out by Lessee. D. Lessee may, at its expense, alter or modify the Premises to suit its needs, provided that written consent of Lessor has first been obtained, which consent will not be unreasonable withheld. XIII. Option to Renew A. Lessee shall have the option to renew this Lease Agreement for ______ (number) additional terms of (number) years at the same basic rental rate but with the additional percentage rental increased to ____% of the gross receipts of Lessee. B. Lessee may exercise the option granted by this Section by giving written notice to Lessor at least ________ (number) days before expiration of this Lease Agreement. XIV Financial Statement of Lessee Lessee shall provide a monthly statement of gross receipts to Lessor by the _____day of each month. The percentage rental rate shall be based on this monthly figure. Lessor may have the books and records of Lessee audited at its expense if Lessor is dissatisfied with the statement furnished by Lessee. XV. 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 at least ____% 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 $_______________for each injury to either employees or invitees on the Premises, $_________________for each accident or occurrence, and $_____________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. XVI. Bankruptcy Lessor shall have the option on ____ (number) 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. XVII. Condemnation A. This Lease Agreement shall terminate in the event of a total condemnation of the Premises by an authorized governmental agency. A partial condemnation of the Premises shall only terminate this Lease Agreement at the option of Lessor, but if Lessor elects to continue this Lease Agreement, Lessee shall be entitled to a partial abatement of rent proportionate to the loss of use in the Premises suffered by Lessee. B. Lessor shall be entitled to all consequential damages awarded as a result of any eminent domain proceedings. XVIII. Examination of Premises A. Lessees 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. XIX. 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 _____ (number) days to either correct the condition or commence corrective action if the condition cannot be corrected in _____ (number) days. If the condition cannot be corrected in _____ (number) days, Lessee shall have a reasonable time to complete the correction. 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 _____ (number) days' notice to Lessee of Lessor's intent to do so. XX. Holding Over A. Lessee shall pay to Lessor a monthly sum equal to the rent specified in this Lease plus ____ % 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. XXI. 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. XXII. 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. XXIII. Governing Law This Lease Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of __________. XXIV. 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. XXV. 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. XXVI. Binding Effect This Lease Agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors, and assigns of the parties. XXVII. Mandatory Arbitration Notwithstanding the foregoing, and anything herein to the contrary notwithstanding, 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. WITNESS our signatures as of the day and date first above stated. ________________, INC. __________________, INC. By___________________________ By___________________________ (Name and Office in Corporation) (Name and Office in Corporation) Attach Exhibits Acknowledgment (form may vary state by state)