LEASE AGREEMENT MN101: MULTI-TENANT MINNESOTA LEASE FOR INDUSTRIAL, WAREHOUSE AND/OR OFFICE USE $99.95
This Lease (“Lease”) is made as of _________________, by and between COMMERCIAL PROPERTY LANDLORD, INC., a __________________ corporation (“Landlord”), and AGREEABLE TENANT, INC., a _________________ corporation (“Tenant”).
1. BASIC TERMS. This Section 1 contains the Basic Terms of this Lease between Landlord and Tenant, named below. Other Sections of the Lease referred to in this Section 1 explain and define the Basic Terms and are to be read in conjunction with the Basic Terms.
1.1. Date of Lease:
1.4. Premises: Approximately ________________ rentable square feet in the building commonly known as __________________ (the “Building”).
1.5. Property: See Exhibit A.
1.6. Lease Term: The term of this Lease (the “Term”) shall commence on the fifth (5th) day after the Architect (as defined in Exhibit B) delivers the Substantial Completion Notice, as also defined in Exhibit B (the “Commencement Date”) and shall end, subject to Section 2.3 below, on ____________ (the “Expiration Date”). Notwithstanding the foregoing, the Commencement Date shall occur on or prior to ___________, and in the event that the Commencement Date is delayed beyond ___________, Tenant shall receive two (2) additional days of abated base rent for each day after __________ that the Commencement Date is delayed.
1.7. Tenant shall have the option to extend the Term pursuant to the terms set forth on the attached Exhibit E.
1.8. Permitted Uses: (See Section 4.1) General office and warehouse purposes
1.9. Tenant’s Guarantor: (if none, so indicate) None.
1.10. Brokers: (See Section 23; if none, so indicate)
(A) Tenant’s Broker: ________________
(B) Landlord’s Broker: ______________
1.11. Security/Damage Deposit: (See Section 4.4) $_____________
1.12. Initial Estimated Additional Rent Payable by Tenant: $_____________ per month. Tenant’s obligation to pay Additional Rent items shall commence on the Commencement Date.
1.13. Tenant’s Proportionate Share of Operating Expenses allocated solely to the Building:_____%, based on total Building square footage of ________.
1.14. Intentionally Deleted.
1.15. Moving Allowance: Landlord shall provide Tenant with a moving allowance in the amount of ______________ Dollars ($_______), payable on the Commencement Date.
1.16. Intentionally Deleted.
1.17. Riders to Lease: The following riders are attached to and made a part of this Lease. (If none, so indicate) Exhibits A – F
2. LEASE OF PREMISES; RENT.
2.1. Lease of Premises for Lease Term. Landlord hereby leases the Premises to Tenant, and Tenant hereby rents the Premises from Landlord, for the Term and subject to the conditions of this Lease.
2.2. Types of Rental Payments. Tenant shall pay net base rent to Landlord in monthly installments, in advance, on the first day of each and every calendar month during the Term of this Lease (the “Base Rent”) in the amounts and for the periods set forth below:
[insert rent schedule]
The parties anticipate that the Landlord Improvements will be substantially completed prior to ________. If the Commencement Date is other than ________, the date on which Tenant’s obligation to commence paying Base Rent begins and the other dates set forth above shall be appropriately adjusted.
Tenant shall also pay Tenant’s Proportionate Share (as set forth in Section 1.13) of Operating Expenses (as hereinafter defined), and any other amounts owed by Tenant hereunder [collectively, “Additional Rent”]. In the event any monthly installment of Base Rent or Additional Rent, or both, is not paid within 10 days of the date when due, a late charge in an amount equal to 5% of the then delinquent installment of Base Rent and/or Additional Rent [the “Late Charge”; the Late Charge, Default Interest (as defined in Section 22.3 below), Base Rent and Additional Rent shall collectively be referred to as “Rent”] shall be paid by Tenant to Landlord, _________________ (or such other entity designated as Landlord’s management agent, if any, and if Landlord so appoints such a management agent, the “Agent”), or pursuant to such other directions as Landlord shall designate in this Lease or otherwise in writing.
2.3. Covenants Concerning Rental Payments. Tenant shall pay the Rent promptly when due, without notice or demand, and without any abatement, deduction or setoff, except as may otherwise be expressly and specifically provided in this Lease. No payment by Tenant, or receipt or acceptance by Agent or Landlord, of a lesser amount than the correct Rent shall be deemed to be other than a payment on account, nor shall any endorsement or statement on any check or letter accompanying any payment be deemed an accord or satisfaction, and Agent or Landlord may accept such payment without prejudice to its right to recover the balance due or to pursue any other remedy available to Landlord. If the Commencement Date occurs on a day other than the first day of a calendar month, the Rent due for the first calendar month of the Term shall be prorated on a per diem basis and paid to Landlord on the Commencement Date, and the Term will be extended to terminate on the last day of the calendar month in which the Expiration Date stated in Section 1.5 occurs.
3. OPERATING EXPENSES.
3.1. Definitional Terms Relating to Additional Rent. For purposes of this Section and other relevant provisions of the Lease:
3.1.1. Operating Expenses. The term “Operating Expenses” shall mean all costs and expenses paid or incurred with respect to the ownership, repair, replacement, restoration, maintenance and operation of the Property, including, without limitation, the following: (i) services provided directly by employees of Landlord or Agent in connection with the operation, maintenance or rendition of other services to or for the Property; (ii) to the extent not separately metered, billed, or furnished, all charges for utilities and services furnished to either or both of the Property and the Premises (including, without limitation, the Common Areas [as hereinafter defined]), together with any taxes on such utilities; (iii) all premiums for casualty, workers’ compensation, liability, boiler, flood and all other types of insurance provided by Landlord and relating to the Property, all third party administrative costs incurred in connection with the procurement and implementation of such insurance policies, and all commercially reasonable deductibles paid by Landlord pursuant to insurance policies required to be maintained by Landlord under this Lease; (iv) the cost of all supplies, tools, materials and equipment utilized in the ownership and operation of the Property, and sales and other taxes thereon; (v) amounts charged (including, without limitation, those costs and expenses set forth in Section 13.1(i) below) by any or all of contractors, materialmen and suppliers for services, materials and supplies furnished to Landlord in connection with any or all of the operation, repair and maintenance of any part of the Property (together with a reasonable overhead and administrative fee to Landlord), including, without limitation, the structural elements of the Property and the Common Areas; (vi) management fees (not to exceed five percent (5%) of gross rents) to Landlord or Agent or other persons or management entities actually involved in the management and operation of the Property; (vii) any capital improvements made by, or on behalf of, Landlord to the Property that are either or both (a) designed to reduce Operating Expenses (provided the improvement actually reduces Operating Costs at least equal to the annual amortization) and (b) required to keep the Property in compliance with all governmental laws, rules and regulations enacted after the date of this Lease thereto, from time to time, the cost of which capital improvements shall be reasonably amortized by Landlord over the useful life of the improvement, in accordance with generally accepted accounting principles; (viii) all professional fees incurred in connection with the operation, management and maintenance of the Property; and (ix) Taxes, as hereinafter defined in Section 3.1.2.
Costs relating to the following items shall not be considered to be Operating Expenses for purposes of this Lease:
1. Original Construction. All costs incurred in connection with or directly related to the original construction (as distinguished from operation, repair and maintenance) of the Property.
2. Initial Development. Legal and other fees, leasing commissions, advertising expenses and other costs incurred in connection with acquisition of the land, or the original development or original leasing of the Property.
3. Hazardous Substances. All costs related to the removal of substances or materials from the Building or the Property which are presently, or at any time in the future may be, deemed hazardous, except to the extent Tenant is deemed responsible therefore under Section 9.2.
4. Employee Limitation. All costs for any employees above the rank of building manager and reasonable allocation of the costs of all employees at or below the rank of building manager whose duties include work on other buildings or projects or on activities the costs of which are otherwise excluded from operating costs.
5. Capital Costs. Except as specifically included above, the costs (or any amortization thereof) of any alteration, addition, change, replacement, improvement, repair, or other item which are properly capitalized under either generally accepted accounting principles or under federal income tax accounting principles.
6. Depreciation. Any charge for depreciation or amortization of any of the improvements.
7. Ground Leases and Easements. Any charges for ground leases or other underlying leases, easements or any other similar or dissimilar use fees or other costs related to the use of the land.
8. Financing Costs. Financing and refinancing costs, interest on debt or amortization payments on any mortgage or mortgages.
9. Correcting Defects. Costs of correcting defects in the design or construction of the Building, or the material used in the construction of the building (including latent defects in the Building or the inadequacy of design of the building).
10. Damage by Other Tenants. The cost of any repair to remedy damage caused by or resulting from the negligence of any other tenants in the Property, including their agents, servants, employees or invitees, together with the costs and expenses incurred by Landlord in attempting to recover such costs.
11. Leasing Costs. All costs relating to any leasing or re-leasing of the Building. In the event the building management company is responsible for leasing or re-leasing of the Building a reasonably allocable share of the management fee, attributable to leasing of the Building, shall be therefore excluded.
12. Improvements to Rentable Areas. Costs incurred in renovating or otherwise improving or decorating or redecorating space (including painting, carpet shampooing, drapery cleaning and wall washing) for tenants or other occupants in the Building and costs incurred by Landlord, whether or not reimbursed to Landlord, by other tenants in connection with maintenance or repair of above-shell condition improvements.
13. Bad Debts or Rent Loss. A bad debt loss, rent loss or reserves for bad debts or rent loss, provided, however, the cost of purchasing rent loss insurance shall not be excluded.
14. Affiliates – Excessive Payments. Any item of cost, including a building management fee, which represents an amount paid to an affiliate of Landlord or an affiliate of any partner or shareholder of Landlord, or to the building management company or an affiliate of the building management company, to the extent the same is in excess of the reasonable cost of said item or service in an arm’s-length transaction. For the purposes hereof “affiliate” shall include subsidiaries of landlord or any person or entity that directly or indirectly through one or more intermediaries controls or is controlled by or is under common control with Landlord or the building management company.
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