Commercial Property Case Study

TRIPLE NET LEASE AGREEMENT

THIS LEASE is made as of ____________________, by and between ____________________

("Lessor"), whose address is ____________________, ____________________ ,

____________________ , ____________________ and ____________________, whose address

is ____________________, ____________________, ____________________.

WITNESSETH, THAT FOR AND IN CONSIDERATION of the covenants and agreements

herein contained to be observed, kept and performed by the aforementioned respective parties

hereto, the Lessor does hereby lease, let and demise unto the Lessee and the Lessee does hereby

lease and hire for the Lessor the premises located and situated at ____________________,

____________________, ____________________ (the "Premises") in the County of

____________________, County Tax Map #____________________ ,

Parcel#____________________ containing approximately acre parcel of real estate being the

same real estate by deed dated____________________ and recorded in the office of the Clerk of

the County of ____________________, in the State of ____________________, in the Deed Book

____________________, on page ____________________. The description of the premises is as

follows:

____________________________________________________________

USE OF PREMISES

The premises shall be used only as or for the purpose of:

____________________.

LEASE TERM

The term of this lease shall begin on ____________________and will end on at

____________________11:59 PM (the "Term"). If the Lessee vacated the premises prior to the

end of the lease term, the Lessee shall be liable for the balance amount of the lease for the

remainder of the lease term.

In the event that the Lessee desires to vacate the premises, the Lessee shall provide the Lessor with

____________________days advance written notice of intent to vacate. Advance notice shall be

provided to ensure termination ensues at the end of the month. Prior to vacating the premises, the

Lessee shall make sure that the premises are clean and free and clear of any dirt, trash, waste and/or

debris, with the exception of normal wear and tear. The Lessor shall have the right to perform a

walk through prior to the Lessee vacating to ensure premise complies with the aforementioned

requirements.

RENT/LEASE PAYMENT

The Lessee agrees to and shall pay monthly installment payments to the Lessor at

____________________, ____________________, ____________________, or at such other

address that the Lessor shall designate in writing, as rent or lease payment for the leased premises.

Lessee shall pay to the Lessor the annual base amount of $0.00 payable in twelve (12) equal

monthly installment payments of ____________________, due and payable on the

____________________of each month.

Any payments received after the aforementioned day shall be deemed late and delinquent.

HOLDING OVER

Failure of the Lessee to surrender the leased premises at expiration of the lease constitutes a

holding over which shall be construed as a "tenancy-at-will" or a month to month lease at the rate

of ____________________ per month, until such time as the Lessee completes a renewal or

provides notice of intent to vacate.

TRIPLE NET LEASE

This Lease is what is generally referred to as a "net net net lease" ("triple net lease"), and it is

understood that the Lessor shall receive all rent or lease payments free and clear of any and all

impositions, encumbrances, charges, obligations or expenses of any nature whatsoever in

connection with the ownership and operation of the Premises. In addition, the Lessee shall pay to

the parties respectively entitled thereto all impositions, insurance premiums, operating charges,

maintenance charges, construction costs and any other charges, cost, and expenses which arise or

may be contemplated under any provisions of this Lease during the Term hereof. All of the said

charges, costs and expenses shall constitute Rent or Lease payment, and upon the failure of the

Lessee to pay any such costs, charges or expenses, the Lessor shall have the same rights and

remedies as otherwise provided in this Lease for the failure of Lessee to pay rent or make lease

payments. The Lessee shall at no time be entitled to any abatement or reduction in Rent or Lease

payments that are payable under this Lease except as otherwise expressly provided. Any present

or future law to the contrary shall not alter this agreement of the parties.

SECURITY DEPOST

Concurrently with the execution of this Lease, the Lessee shall deliver to the Lessor the amount of

____________________ as security for the performance of the Lessee of every covenant and

conditions of this Lease (the "Security Deposit"). Said Security Deposit ____________________.

In the event that the Lessee defaults with respect to any covenant or condition of this Lease,

including, but not limited to the payment of rent, the Lessor reserves the option and right to apply

some or all of the paid Security Deposit to the payment of any sum in default or any sum which

the Lessor may be required to spend by reason of 'Lessee's' damage or default. If any portion of

the Security Deposit is so applied, the Lessee, upon demand by the Lessor, shall deposit cash with

the Lessor in an amount sufficient to restore the Security Deposit to its original amount.

Lessee's compliance with all the covenants and conditions of this Lease shall ensure the return of

the Security Deposit, or any balance thereof, to the Lessee promptly after expiration of the term of

the Lease Agreement.

POSSESSION

The Lessee shall take possession of the premises on ____________________, unless otherwise

stipulated. The Lessor shall use due diligence to ensure Lessee is provided possession of the

premises at the beginning of the Term of this Lease Agreement. The first month's rent shall be

prorated for the period of any delay in providing or turning over possession of the premises to the

Lessee; however, the length of the term of this Agreement shall not be extended as a result of any

such delay. The Lessee shall bring no claim against the Lessor for any delay in obtaining

possession.

In the event that the Lessee fails to take possession of the premises within ____________________

days after the beginning of this Lease, then the Lessor retains the right to terminate this Agreement.

INSURANCE ON PREMISE

The Lessee shall obtain and pay for, at his/her own cost and expense, fire and extended coverage

casualty insurance for the building and other improvements on the leased premises, with such

comprehensive or so called "all-risk" endorsements and in such amounts as the Lessor may, from

time to time, deem reasonably necessary, and showing the Lessee, the Lessor and the Lessor's

Lender or Lien Holder, if any, as the insured parties. Lessee shall also obtain and pay for loss of

rent coverage. The Lessee shall at all times keep said insurance in force and effect and shall provide

to the Lessor copies of said policies or certificates evidencing said coverage. The policies shall be

in form and content reasonably required by the Lessor, shall be issued by an insurance company

approved by the Lessor and shall contain a clause that the Lessee will not cancel, materially modify

or fail to renew said insurance in effect without first providing to the Lessor days advance written

notice. If the Lessee fails to keep said insurance in effect, the Lessee shall be in default hereunder,

and the Lessor may, at his/her option, immediately obtain insurance coverage as provided for

herein and charge the Lessee for the cost thereof.

LESSEE INDEMNITY & LIABILITY INSURANCE

The Lessee shall at all times indemnify, defend and hold the Lessor harmless from all loss, liability,

costs, damage and expenses that may occur or be claimed with respect to any person or persons,

property on or about the Premises or to the Premises resulting from any act done or omission by

or through the Lessee, the Lessee's agents, employees, staff, invitees or any person on the Premises

by reason of the Lessee's use or occupancy or resulting from the Lessee's non-use or possession of

said property and any and all loss, cost, liability or expense resulting therefrom. Lessee shall

maintain at all times during the lease term comprehensive general liability insurance with an

insurance company that is licensed to do business in the state in which the Premises are located

and is satisfactory to Lessor, properly protecting and indemnifying Lessor with single limit

coverage of not less than ____________________ for injury or for death of persons and

____________________ for property damage. During the lease term, Lessee shall furnish the

Lessor with a certificate or certificates of insurance, in a form acceptable to the Lessor, covering

such insurance so maintained by the Lessee and naming the Lessor and Lessor's mortgagees, if

any, as additional insureds.

LESSOR INDEMNITY & LIABILITY INSURANCE

Lessor shall at all times indemnify, defend and hold the Lessee harmless from all loss, liability,

costs, damages and expenses that may occur or be claimed with respect to any person or persons,

property on, about or to any Common Areas resulting from any act done or omission by or through

the Lessor, Lessor's agents, employees, staff, invitees or any person in or on the Common Areas.

The Lessor shall maintain at all time during the lease term comprehensive general liability

insurance with an insurance company satisfactory to the Lessee, properly protecting and

indemnifying the Lessee with single limit coverage of not less than ____________________ for

any injury or ____________________ for death of persons and ____________________ for

property damage.

TAXES

____________________ shall pay during the term of this Lease the real estate taxes and special

taxes and assessments (collectively, the "taxes") attributable to the premises and accruing during

such term. Lessee, at Lessor's option, shall pay to the Lessor said taxes on a monthly basis, based

on one-twelfth (1/12) of the estimated annual amount for taxes. Taxes for any fractional calendar

year during the term hereof shall be prorated. In the event the Lessee does not make any tax

payment required hereunder, Lessee shall be in default of this Lease.

TAXES ON LEASEHOLD

____________________ shall be responsible for and shall pay before delinquency all municipal,

county, or state taxes assessed during the term of this Lease against any leasehold interest or

personal property of any kind owned by or placed in, upon, or about the premises by the Lessee.

OPERATING EXPENSES

It is the intention of the parties, and they hereby agree, that this shall be a triple net Lease, and the

Lessor shall have no obligation to provide any services, perform any acts or pay any expenses,

charges, obligations or costs of any kind whatsoever with respect to the Premises, and Lessee

hereby agrees to pay one hundred percent (100%) of any and all Operating Expenses as hereafter

defined for the entire term of the Lease and any thereof in accordance with specific provisions

hereinafter set forth. The term Operating Expenses shall include all costs to Lessee of operating

and maintaining the Premises and related parking areas, and shall include, without limitation, real

estate and personal property taxes and assessments, management fee, heating, electricity, water,

waste disposal, sewage, operating materials and supplies, service agreements and charges, lawn

care, snow removal, restriping, repairs, repaving, cleaning and custodial, security, insurance, the

cost of contesting the validity or applicability of any governmental acts which may affect operating

expenses, and all other direct operating costs of operating and maintaining the Premises and related

parking areas, unless expressly excluded from the operating expenses.

Notwithstanding the foregoing operating costs, and Lessee's obligations in relation thereto, shall

not include (i) any expense chargeable to a capital account or capital improvement, ground leases;

principal or interest payments on any mortgage or deed of trust on the premises; (ii) any amount

for which Lessor is reimbursed through insurance, or by third persons, (iii) repair costs occasioned

by fire, windstorm or other casualty, (iv) any construction, repair or maintenance expenses or

obligations that are the sole responsibility of the Lessor (not to be reimbursed by the Lessee), (v)

leasing commissions and other expenses incurred in connection with leasing any other area located

on the premises to any other party, (vi) any expense representing an amount paid to an affiliate or

subsidiary of the Lessor which is in excess of the amount which would be paid in the absence of

such relationship, and (vii) costs of items and services for which the Lessee reimburses or pay any

third persons directly.

ASSIGNMENT AND SUBLETTING

The Lessee shall not assign, transfer or encumber this Lease and shall not sublease the Premises

or any part thereof or allow any other person to be in possession thereof without prior written

consent of the Lessor, in each and every instance. Said consent shall not be unreasonably withheld

by the Lessor. For the purpose of this provision, any transfer of a majority or controlling interest

in Lessee (whether in one or more related or unrelated transactions), whether by transfer of stock,

consolidation, merger, transfer of a partnership interest or transfer of any or all of Lessee's assets

or otherwise, or by operation of law, shall be deemed an assignment of this lease. Notwithstanding

any permitted assignment or subletting, Lessee shall at all times remain directly, primarily and

fully responsible and liable for the payment of the rent herein specified and for compliance with

all of its other obligations under the terms and provisions of this Lease.

CONDITION OF PREMISES

Lessee acknowledges that it has had the opportunity to inspect the Premises and, with the exception

of any notations or provisions herein provided otherwise in this Lease, the Lessee accepts the

Premises in its present condition. At the end of the lease term, except for any damages caused by

fire or other perils, Lessee, at its expense shall (i) surrender the Premises in the same or similar

condition as existed at the time the Premises were accepted and possession taken by the Lessee,

subject to reasonable wear resulting from uses permitted hereunder, and further subject to Lessee's

obligations; (ii) have removed all of the Lessee's property from the Premises; (iii) have repaired

any damages to the Premises caused by the removal of the Lessee's Property; and (iv) leave the

Premises free of trash, waste, dirty and debris and the Premises in good and reasonable condition.

LESSOR'S RIGHT OF ENTRY

The Lessor or Lessor's agent shall have the right of entry at reasonable hours to inspect or show

the Premises to prospective Lender or Lien Holders and purchasers, and to perform or provide

anything that the Lessor may be required to perform or provide hereunder, or which the Lessor

may deem necessary for the good or benefit of the Premises or any building of which they are a

part. As of and during the last ninety (90) days of this Lease, the Lessor shall have the right to post

and/or display a "For Rent" sign on the Premises.

EXCLUSION OF LESSEE

Lessor may not intentionally prevent the Lessee from entering the leased Premises except by

judicial process unless the exclusion results from: (i) bona fide repairs, construction, or an

emergency; (ii) removing the contents of Premises abandoned by Lessee; or (iii) changing door

locks of Lessee in the event the Lessee is delinquent in paying rent; Lessor or Lessor's agent must

then place a written notice on Lessee's front door stating the name and address or telephone number

of company or the individual from whom the key may be obtained. The new key is required to be

provided only during Lessee's regular business hours.

SIGNS AND ADVERTISEMENTS

The Lessee shall not place upon nor permit to be placed upon any part of the Premises, any signs,

billboards or advertisements whatsoever, or paint the exterior walls of the building without the

advance prior written consent of the Lessor. The Lessor shall have the right to remove any sign(s)

which have not been approved in order to maintain the leased premises or to make any repairs or

alterations thereto. All permitted signage placement and/or removal shall be at the Lessee's sole

cost and expense.

FORCE MAJEURE

In the event that the Lessor or Lessee is unable to reasonably perform its obligations under this

Agreement as a result of a natural disaster, war, terrorist activities, strike, lockout, labor issues,

civil commotion, and act of God, or any other event beyond the control of the Lessor or Lessee,

with the exception for non-availability of funds, the party shall not be in breach of this Agreement

if the party diligently performs the obligations after the end of the force majeure event. The non-

performing party shall give written notice to the other party as soon as reasonably practicable in

the event of non-performance due to a force majeure event.

In the event, during the Term or previous Term thereto, the premises shall be destroyed or so

damaged by fire or other casualty as to become uninhabitable or unusable, then in such event, at

the option of the Lessor, this Lease shall terminate from the date of such damage and/or

destruction. The Lessor shall exercise this option to terminate this Lease by delivering written

notice to the Lessee within ____________________ days after the occurrence of such damage

and/or destruction. Upon such notice, the Lessee shall immediately surrender said Premises and

all interest therein to the Lessor, and the Lessee shall pay rent only to such time that damages

and/or destruction occurred. In the event that the Lessors does not elect to terminate this Lease,

this Lease shall therefore continue in full force and effect, and the Lessor shall expeditiously make

any and all necessary repairs to the Premises as needed, placing the same in as good condition as

it was prior to the occurrence of damage or destruction.

PERSONAL PROPERTY

The Lessor shall not be liable for any loss or damage to any merchandise inventory, goods, fixtures,

improvements or personal property of the Lessee in or about said Premises.

ALTERATIONS

Any and all alterations, additions and/or improvements, except trade fixtures, installed at the

expense of the Lessee shall become the property of the Lessor and shall remain upon and shall be

surrendered with the leased Premises as a part thereof on the termination of this lease. Such

alterations, additions, and improvements may only be made with the prior written consent and

approval of the Lessor, which shall not be unreasonably withhold said consent. If consent is

granted by the Lessor for the making of improvements, alterations or additions to the leased

Premises, such improvements, alterations or additions shall not commence until such time as the

Lessee has furnished to the Lessor a copy of all plans and a certificate of insurance showing

coverage in an amount satisfactory to the Lessor protecting the Lessor from liability for injury to

any person and damage to any personal property, on or off the leased Premises, in connection with

the making of such improvements, alterations or additions. No cooling tower, equipment, or

structure of any kind shall be placed on the roof or elsewhere on the leased premises by the Lessee

without prior written permission of the Lessor. If such permission is granted, such work or

installation shall be done at the Lessee's expense and in such a manner that the roof shall not be

damaged thereby. If it becomes necessary to remove such cooling tower, equipment or structure

temporarily so that repairs to the roof can be made, Lessee shall promptly remove and reinstall the

cooling tower, equipment or structure at the Lessee's expense and repair at the Lessee's expense

any damage which may result from such removal or reinstallation. Upon termination of this lease,

Lessee shall remove or cause to be removed from the roof any such cooling tower, equipment or

structure if directed to do so by the Lessor. Lessee shall promptly repair, at its expense, any

damages resulting from such removal. At the termination of this lease, Lessee shall deliver the

leased Premises in good order and condition, natural deterioration only excepted. Any damage

caused by the installation of trade fixtures shall be repaired at the Lessee's expense prior to the

expiration of the lease term. All alterations, improvements, additions and repairs made by the

Lessee shall be made in good and workmanlike manner.

UTILITIES & SERVICES

The ____________________ shall furnish and pay for all of the following and any other utilities

deemed necessary by the Lessee at the Premises:

___________________________________________________________________________

INTERRUPTION OF UTILITIES

Lessor or Lessor's agent may not interrupt or cause the interruption of utility services paid directly

to the utility company by the Lessee unless interruption results from bona fide repairs,

construction, or an emergency. If any utility services furnished by the Lessor are interrupted and

continue to be interrupted despite the good faith efforts of Lessor to remedy the same, Lessor shall

not be liable in any respect for damages to the person or property of Lessee or Lessee's employees,

agents, or guests and same shall not be construed as grounds for constructive eviction or abatement

of rent. Lessor shall use reasonable diligence to repair and remedy such interruption promptly.

LEGAL REQUIREMENTS

The Lessee shall comply with all laws, orders, ordinances and other public requirements now and

hereafter affecting the Premises or the use thereof, and the Lessee shall indemnify, defend and

hold harmless the Lessor from any expense or damage resulting from the failure to do so.

FIXTURES

With the exception for Lessee's personal property and trade fixtures, all buildings, repairs,

alterations, additions, improvements, installation and other non-trade fixtures installed or erected

on the Premises, whether by or at the expense of the Lessor or Lessee, shall belong to the Lessor

and shall remain on and be surrendered with the Premises at the expiration or termination of this

Lease. However, the Lessor shall retain the option to permit the Lessee to remove their alterations

or improvements prior to the expiration of this Lease and return the Premise to its original

condition.

REPAIRS AND MAINTENANCE

The Lessor shall maintain the foundation, exterior walls (with the exception of glass; windows;

doors; door closure devices; window and door frames; molding; locks and hardware) and exterior

painting or other treatment of exterior walls, and the roof of the leased Premises in good repair

except that the Lessor shall not be required to make any repairs resulting from the negligence or

acts of negligence on the behalf of the Lessee, its staff, employees, sublessees, licensees and

concessionaires. The Lessee shall be responsible for maintenance of the common areas and

common area equipment and furnishings. Any such repairs and/or maintenance in which the

Lessor would be responsible, the Lessee agrees to provide Lessor with written notice of the needed

repairs and/or maintenance, and Lessor shall ensure that any repairs and/or maintenance shall be

made and completed within a reasonable time frame. Lessee shall notify the Lessor of any

emergency repairs to be made. Lessee shall keep the interior of the leased Premises in good, clean

and workable condition and shall, at its sole expense, make all needed repairs and replacements,

including replacement of cracked or broken glass, windows, doors, door closure devices, door and

window frames, molding, locks and hardware, except for repairs and replacements required to be

made by the Lessor under this section.

In the event that any repairs required to be made by the Lessee hereunder are not made within

____________________ days after written notice delivered to the Lessee by the Lessor, the Lessor

shall reserve the right and option to make or have said repairs made without liability to the Lessor

for any loss or damage which may result by reason of such repairs, and that Lessee shall pay to the

Lessor, upon demand as additional rent hereunder, the cost of such repairs plus. At the termination

of this Lease, Lessee shall deliver the leased premises in good order and condition, normal wear

and tear excepted. Normal wear and tear meaning the deterioration which results from normal use

and not as an act of carelessness, neglect, accident or abuse.

EMINENT DOMAIN

In the event that the Premises are taken under the power of eminent domain or a conveyance in

lieu thereof by any authority having the right of condemnation, or if a portion thereof is taken so

that the Premises are unsuitable, in the Lessee's reasonable opinion, for Lessee's use, then the term

of this lease shall terminate as of the date that title shall vest in the acquiring authority, and the

rent and other charges shall be adjusted as of the date of such taking. In such case, the Lessor shall

be entitled to the proceeds of the condemnation award made to the Lessor. Nothing herein shall be

construed to prevent the Lessee from separately pursuing a claim against the condemning authority

for its independent loss or damages to the extent available, provided however, that no award made

to or on behalf of the Lessee shall reduce, limit, or restrict the award to the Lessor, and no allocation

of the Lessor's award in condemnation shall occur. The Lessee shall have no claim against the

Lessor for the value of the unexpired term of this Lease. Should any part of the Premises be taken

in the exercise of eminent domain or a conveyance in lieu thereof or in connection therewith, but

not such as to render the Premises unsuitable for the operation of Lessee's business, this Lease

shall continue on the same terms and conditions except that the description of the Premises or the

real estate taken by right of eminent domain or conveyance in lieu thereof or in connection

therewith shall be modified to reflect such taking. In the event this Lease does not terminate by

reason of such taking, the condemnation proceeds from the 'Demised Premises' will first be used

to restore the Premises to a position of occupancy by the Lessee. The balance of such

condemnation proceeds from the Premises, if any, shall belong to the Lessor.

WAIVER OF SUBROGATION

As part of the consideration for this Lease, each of the parties hereby releases the other party from

all liability for damage due to any act or neglect of the other party occasioned to the property

owned by said parties which is or might be incident to or the result of fire or other casualty against

loss for which either of the parties is now carrying or hereafter carry insurance; provided however,

that the releases herein contained shall not apply to any loss or damage occasioned by intentional

acts of either of the parties, and the parties further covenant that any insurance they obtain on their

respective properties shall contain an appropriate provision whereby the insurance company, or

companies, consent to the mutual release of liability contain in this paragraph.

DEFAULT & REMEDIES

Lessor shall have the following remedies if Lessee commits a default. These remedies are not

exclusive; they are cumulative and in addition to any remedies now or later allowed by law:

RE-ENTRY: Upon the happening of any such event of default, Lessor, at any time thereafter may:

(a) Either with or without notice of demand, declare the Lease term ended and re-enter the

Premises or any part thereof, either with or without process of law, and expel or remove therefrom

Lessee and all parties occupying the same or any of them, using force as may be necessary so to

do, and again repossess and enjoy the same without prejudice to any remedies that Lessor may

otherwise have by reason of the breach hereof. Or

(b) Re-enter the Premises at its option without declaring the Lease Term ended and relet the

whole or any part therefor for the account of Lessee on such terms and conditions and at such rent

as Lessor may deem proper, collecting such rent and applying it on the amount due from Lessee

hereunder. And on the expense of such reletting (including expense of alteration and special

inducements to Lessee) and on any other damage or expense so sustained by Lessor, or on any

such item or items, Lessor will recover from Lessee the difference between the proceeds of such

reletting and the amount of rentals reserved hereunder and any such damage or expense from time

to time which said sum Lessee agrees to pay upon demand.

LESSEE DEFAULT AND REMOVAL OF ABANDONED PROPERTY

In the event that the Lessee abandons the Premises or otherwise defaults in the performance of any

obligations or covenants herein, the Lessor may enforce the performance of the lease in any manner

provided by law. This lease may be terminated at the Lessor's discretion if such abandonment or

default continues for a period of ____________________ days after the Lessor notifies the Lessee

of such abandonment or default and of Lessor's intention to declare this lease terminated. Such

notice shall be sent by the Lessor to the Lessee at the Lessee's last known address by certified mail.

If Lessee has not completely removed or cured the default within the ____________________ day

period, this lease shall terminate. Thereafter, Lessor or its agents shall have the right without

further notice or demand to enter the leased Premises and remove all property without being

deemed guilty of trespass and without waiving any other remedies for arrears of rent or breach of

covenant. Upon abandonment or default by the Lessee, the remaining unpaid portion of any rent

shall become due and payable. For the sole purpose of this section, Lessee is presumed to have

abandoned the Premises if goods, equipment, or other property, in an amount substantial enough

to indicate a probable intent to abandon the Premises, is being or has been removed from the

Premises and the removal is not within the normal course of Lessee's business. Lessor shall have

the right to store any property of Lessee that remains on the abandoned Premises and, in addition

to Lessor's other rights, may dispose of the stored property if the Lessee does not claim the property

within ____________________ days after the date that the property is stored, provided Lessor

delivers notice by certified mail to Lessee.

DAMAGES

Should Lessor terminate this Lease by reason of any breach thereof by Lessee, Lessor may

thereupon recover from Lessee the worth at the time of such termination of the excess, if any, of

the amount of rent and charges equivalent to rent reserved herein for the balance of said Term over

the then reasonable rental value of the Premises for the same period. Lessor shall not by any re-

entry or other act be deemed to have terminated this Lease or the liability of Lessee for the total

rent hereunder or any installment thereof then due or thereafter accruing or for damages unless

Lessor shall notify Lessee in writing that Lessor has so elected to terminate the Lease.

LESSOR'S RIGHT TO CURE LESSEE'S DEFAULT

Lessor, at any time after Lessee commits a default, can cure the default at Lessee's cost. If Lessor

at any time, by reason of Lessee's default, pays any sum or does any act that requires the payment

of any sum, the sum paid by Lessor shall be due immediately from Lessee to Lessor at the time

the sum is paid.

WAIVER

The rights and remedies of the Lessor under this Lease, as well as those provided by law, shall be

cumulative, and none shall be exclusive of any other rights or remedies. A waiver by the Lessor

of any breach or default of the Lessee shall not be deemed or construed to be a continuing waiver

of such breach or default nor as a waiver of or permission, expressed or implied, for any subsequent

breach or default. It is agreed that the acceptance by the Lessor of any installment of rent

subsequent to the date the same should have been paid shall not alter the covenant and obligation

of Lessee to pay subsequent installments of rent promptly upon the due date. Receipt by Lessor of

partial payment after Lessee's default shall not be construed to be or constitute a cure of any such

default. No receipt of money by Lessor before or after the termination of this Lease shall in any

way reinstate, continue or extend the term above demised.

TOXIC OR HAZARDOUS MATERIALS

Lessee shall not store, use or dispose of any toxic or hazardous materials in, on or about the

Premises without the prior written consent of Lessor. Lessee, at its sole cost, shall comply with all

laws relating to Tenant's storage, use and disposal of hazardous or toxic materials. Lessee shall be

solely responsible for and shall defend, indemnify and hold Lessor, its agents and employees,

harmless from and against all claims, costs and liabilities, including attorney's fees and costs,

arising out of or in connection with the Lessee's storage, use or disposal of any toxic or hazardous

material in, on or about the Premises including, but not limited to, removal, clean-up and

restoration work and materials necessary to return the Premises, and any other property of

whatever nature located on the Premises, to their condition existing prior to the appearance of toxic

or hazardous materials on the Premises. Lessee's obligations under this paragraph shall survive the

termination of this Lease.

GOVENING LAWS

This Agreement shall be construed under and in accordance with the laws of the State of

____________________.

COMPLIANCE WITH LAWS AND REGULATIONS

Lessee shall, at its own expense, comply with all laws, orders, codes and requirements of all

government entities with reference to the use and occupancy of the leased Premises. Lessee and

Lessee's agents, employees, and invitees shall fully comply with any rules and regulations

governing the use of the buildings or other improvements to the leased premises as required by the

Lessor. Lessor may make reasonable changes in such rules and regulations from time to time as

deemed advisable for the safety, care and cleanliness of the leased Premises, provided same are in

writing and are not in conflict with this lease.

NOTICES

Any notice hereunder shall be sufficient if sent by certified mail, addressed to the Lessee at the

Premises, and to the Lessor where rent is payable.

SUBORDINATION OF LEASE TO MORTGAGES

This Lease shall be subject and subordinate at all times to the lien of existing mortgages and of

mortgages which hereafter may be made a lien on the Premises; provided however, that with regard

to any pledge or mortgage executed by the Lessor, Lessor shall use its best efforts to provide to

the Lessee a non-disturbance agreement from any mortgagee or other lien holder of Lessor's

interest in the Premises. Such non-disturbance agreement shall be in form and content reasonably

acceptable to Lessee and Lessor's mortgagee or other lien holder, together with a representation

that the Lessor is not in default of any of the terms of any such mortgage or security agreement as

of the date thereof. Although no instrument or act on the part of the Lessee shall be necessary to

effectuate such subordination, the Lessee will nevertheless execute and deliver such further

instruments subordinating this Lease to the lien of any such mortgages as may be desired by the

mortgagee. The Lessee hereby irrevocably appoints the Lessor as Lessee's attorney-in-fact to

execute and deliver such instrument for the Lessee. Provided however, and notwithstanding the

foregoing provisions hereof, upon foreclosure of the mortgage with the mortgagee succeeding to

the rights of the Lessor, the Lessee shall, at the option of said mortgagee, be bound to the

mortgagee under all of the terms of the Lease for the balance of the term hereof remaining with

the same force and effect as if the mortgagee were the Lessor under the Lease, and the Lessee

hereby attorns to the mortgagee as its Lessor, such attornment to be effective and self-operative if

the mortgagee so elects. In no event, however, shall the mortgagee be liable for any act or omission

of any prior Lessor, be subject to any offsets or defenses which Lessee might have against any

prior Lessor, or be bound by any rent or additional rent which the Lessee might have paid to any

prior Lessor for more than the current month.

SUCCESSORS

The provisions, covenants and conditions of this Lease shall bind and inure to the benefit of the

legal representatives, heirs, successors and assigns of each of the parties hereto, except that no

assignment or subletting by Lessee without the written consent of Lessor shall vest any rights in

the assignee or subtenant of Lessee.

QUIET POSSESSION

Lessor agrees, so long as Lessee fully complies with all of the terms, covenants and conditions

herein contained on the Lessee's part to be kept and performed, Lessee shall and may peaceably

and quietly have, hold and enjoy the Premises for the term aforementioned, it being expressly

understood and agreed that the aforementioned covenant of quiet enjoyment shall binding upon

the Lessor, its heirs, successors or assigns, but only during such party's ownership of the Premises.

Lessor and Lessee further covenant and represent that each has full right, title, power and authority

to make, execute and deliver this Lease.

BANKRUPTCY

Neither this Lease nor any interest therein nor any estate hereby created shall pass to any trustee

or receiver in bankruptcy or to any other receiver or assignee for the benefit of creditors by

operation of law or otherwise during the Term or any renewal thereof.

PRIOR AGREEMENTS SUPERSEDED

This agreement constitutes the sole and only agreement of the parties to this lease and supersedes

any prior understandings, whether written or oral agreement, between the parties respecting the

subject matter of this lease.

AMENDMENT

No amendment, modification, or alteration of the terms hereof shall be binding unless it is in

writing, dated subsequent to the date hereof and duly executed by all parties to this agreement.

ADDITONAL INSTRUMENTS

The parties hereto will execute any and all additional document or instruments that may be

necessary or convenient to carry out the intent and purposes of the parties to this agreement.

ENTIRE AGREEMENT

This Lease contains the entire agreement between the parties and no modification of this Lease

shall be binding upon the parties unless evidenced by an agreement in writing and signed by the

Lessor and Lessee after the date hereof. If there be more than one Lessee name herein, the

provisions of this Lease shall be applicable to and binding upon such Lessees, jointly and severally.

IN WITNESS WHEREOF, said parties hereunto subscribe their names.

LESSOR

By

:

_________________________________________________

_ (Lessor Signature)

___________________

_ (Date)

Lessor Telephone: ____________________

Lessor Email: ____________________

LESSEE

By

:

_________________________________________________

_ (Lessee Signature)

___________________

_ (Date)

Lessee Telephone: ____________________

Lessee Email: ____________________