INDUSTRIAL SPACE LEASE
by and between
[TENANT]
And
[LANDLORD]
[DATE OF LEASE]
INDUSTRIAL SPACE LEASE
INDEX
THIS LEASE is made this [DATE OF LEASE] by and between [LANDLORD]. (hereinafter sometimes referred to as "Landlord"), and [TENANT], an Illinois Corporation (hereinafter sometimes referred to as "Tenant"), who hereby mutually, covenant and agree as follows:
I. GRANT AND TERM
1.0 Grant Landlord, for and in consideration of the rents herein reserved and of the covenants and agreements herein contained on the part of the Tenant to be performed, hereby leases to Tenant, and Tenant hereby lets from [LANDLORD], Landlord, premises, located at [ADDRESS OF PREMISES] being that part of the real estate legally described on an exhibit which is attached hereto, identified as "Exhibit A" (hereinafter sometimes referred to as the "Real Estate"), which premises are outlined on the site plan attached hereto as Exhibit B, together with all improvements now located or to be located on said premises during the term of this Lease, together with all appurtenances belonging to or in any way pertaining to the said premises (such premises, improvements, and appurtenances hereinafter sometimes jointly or severally, as the context requires, referred to as "Leased Premises"). Subject to covenants, agreements and restrictions of record.
1.1 Term. The term of this Lease shall commence on [COMMENCEMENT DATE] (hereinafter sometimes referred to as "Commencement Date") and shall end Fifteen (15) months thereafter, unless sooner terminated as herein set forth, at 11:59 P.M. on [TERMINATION DATE].
II. POSSESSION
2.0 Possession. Except as otherwise expressly provided herein (or by written instrument signed by Landlord or Landlord's agent or Landlord's beneficiaries or their agent, if Landlord is an Illinois Land Trust), Landlord shall deliver possession of the Leased Premises to Tenant on or before the Commencement Date in their condition as of the execution and delivery hereof. If Landlord gives possession prior to the Commencement Date to enable Tenant to fit the leased Premises to its use, such occupancy shall be subject to all-the terms and conditions of this lease (except that Tenant shall not be required to pay rent or excess Impositions during such occupancy). If Landlord shall be unable to deliver possession of the Premises on the Commencement Date by reason of the fact that work required to be done by Landlord hereunder, if any, has not been completed for any reason, or because a prior Tenant has failed to deliver up possession of the Premises, Landlord shall not be subject to any liability for the failure to give possession on said date, nor shall the validity of this lease or the obligations of Tenant hereunder be in any way affect. Under such circumstances unless the delay is the fault of Tenant, rent and other charges hereunder shall not commence until the later of the date possession of the Premises is given or the Commencement Date.
III. PURPOSE
3.0 Purpose. The Leased Premises shall be used and occupied only for the purpose of the warehousing and storage of industrial engines, generators and replacement parts.
3.1 Uses Prohibited. Tenant will not permit the Leased Premises to be used in any manner which would render the insurance thereon void or the insurance risk more hazardous provided, however, that if Tenant's use of the Leased Premises does make the insurance risk more hazardous and as a result thereof Landlord's insurance premiums are increased, Tenant shall reimburse Landlord for such increase promptly upon being billed therefor. Tenant shall not use or occupy the Leased Premises, or permit the Leased Premises to be used or occupied, directly or indirectly, contrary to any statue, rule, order, ordinance, requirement or regulation applicable thereto; or in any manner which would violate any certificate of occupancy affecting the same; or which would cause structural injury to the improvements; or cause the value or usefulness of the Real Estate or any part thereof, to diminish, or which would constitute a public or private nuisance or waste. Tenant shall not obstruct or use for storage or for any purpose other than ingress and egress the sidewalks or entrances.
IV. RENT
4.0 RENT. Beginning with [COMMENCEMENT DATE] Tenant shall pay to, or upon the order of, [LANDLORD ADDRESS] until otherwise notified in writing by Landlord, as rent for the Leased Premises, a term rental of [TERM RENT] Dollars and 00/100 ($[TERM RENT NUMERICAL]) which is payable monthly in advance in installments as follows:
Period [RENT INSTALLMENT PERIOD]
Sq. Ft. Rate[RENT SQUARE FOOT RATE]
Base Annual Rent [BASE ANNUAL RENT]
Monthly Base Rate [MONTHLY BASE RENT]
If Tenant occupies the Leased Premises for the purpose of preparing the Premises for their occupancy, prior to the Commencement Date, Tenant shall pay any utilities and any pro rated common area expenses from the date of occupancy to the Commencement Date. All payments of rent shall be made without deduction, set-off, discount, or abatement in lawful money of the United States.
4.1 INTEREST ON LATE PAYMENTS. Each and every payment of charges hereunder which shall not be paid when due, shall bear interest at the highest rate, then payable by Tenant in the state in which Leased Premises are located, or in the absence of such a maximum rate, at the rate of ten percent (10%) per annum, from the date when the same is payable under the terms of this lease until the same shall be paid.
4.2 LATE RENT PENALTY. The Tenant agrees to pay said rent, in advance, on or before the first day of each and every month of the term of this Lease and any extended term thereof. In the event the Tenant fails to remit the rental on or before the tenth (10th) day of each and every month in which the rent is due, Tenant agrees to add [AMOUNT OF LATE RENT PENALTY] ($[AMOUNT OF LATE RENT PENALTY NUMERICAL]) to the rental installment currently in effect.
V. IMPOSITION
5.0 Payment by Tenant. Tenant shall pay to Landlord as additional rent for the Leased Premises Zero percent (0%) of all general real estate taxes which may be levied, assessed or imposed upon the Real Estate and all improvements thereon, becoming due and payable during the term of the Lease. "Impositions" in excess of the [YEAR OF REAL ESTATE TAXES] real estate taxes, due and payable in [DUE DATE FOR REAL ESTATE TAXES] provided, however that Tenant's share of such excess impositions shall be prorated between Landlord and Tenant as of the Commencement Date for the first year of the Lease term and as or the expiration date of the Lease term for the last year of the Lease term, all on the basis of the then most recently ascertainable real estate tax bills. The term "Tenant's Share" shall mean that proportion equal to the area of Leased Premises ([SQUARE FEET OF LEASED PREMISES] square feet) divided by the total area of the building in which the Leased Premises are located ([TOTAL AREA OF BUILDING] square feet), and is hereby agreed to be ([XXXX]%). Tenant shall also pay to Landlord Zero percent (0%) all expenses including, without limitation, reasonable attorney's fees and expenses, administrative hearing and court costs incurred by Landlord in contesting or negotiating the amount, assessment or rate of any Imposition or real estate taxes; and of any special assessments levied or assessed upon the Real Estate, or any part thereof, from and after the Commencement Date hereof; provided, however, that Tenant may take the benefit of the provisions of any statute or ordinance permitting any assessment to be paid over a period of years, and Tenant shall be obligated to pay its share of only those installments falling due during their term of this Lease, Tenant's share of such excess Impositions shall be paid by Tenant to Landlord within ten (10) days after Landlord bills Tenant therefor. In the event that the amount of Impositions is increased by reason of - improvements made to the Leased Premises (other than the Unit Improvements, if any), Tenant shall pay to Landlord on demand the entire amount of such increase attributable to such improvements. Notwithstanding, the rentable area of the Leased Premises will consist of the warehouse only and will total [RENTABLE AREA OF LEASED PREMISES] sq. ft. with access to the lunchroom and one (1) washroom in the office. The general office area is specifically excluded from this lease. Real Estate Taxes are included in the rent as outlined in Section 4.0 Rent. Tenant will have no responsibility for additional real estate taxes during the term.
VI. INSURANCE
6.0 Kinds and Amounts. As additional rent for the Leased Premises, Tenant shall procure and maintain policies of insurance, at its own cost and expense, insuring:
(a) Landlord and Tenant from all claims, demands or actions for injury to or death of any person in an amount of not less than $[AMOUNT OF LIABILITY INSURANCE], for injury to or death of more than one person in any one occurrence in an amount of not less than $[AMOUNT OF LIABILITY INSURANCE FOR MORE THAN ONE PERSON] and for damage to property in an amount of not less than $[AMOUNT OF INSURANCE FOR PROPERTY DAMAGE], made by, or on behalf of, any person or persons, firm or corporation arising from related to or connected with the Leased Premises or any act or omission of Tenant. Said insurance shall comprehend full coverage of the indemnity set forth in Section 13.0 hereof;
(b) Tenant from all workmen's compensation claims and
(c) Landlord and Tenant against breakage of all plate glass utilized in the improvements on the Leased Premises. The Tenant at its option, may self-insured for plate glass breakage
6.1 Form of Insurance. The aforesaid insurance shall be in companies and in form, substance and amount (where not stated above) satisfactory to Landlord and any mortgagee of Landlord. The aforesaid insurance shall not be subject to cancellation except after at least thirty (30) days prior written notice to Landlord and any mortgagee of Landlord. The original insurance policies (or certificates thereof satisfactory to Landlord) together with satisfactory evidence of payment of the premiums thereon, shall be deposited with Landlord at the Commencement Date and renewals thereof not less than thirty (30) days prior to the end of the term of each such coverage. If Landlord is an Illinois Land Trustee and the insurance referred to in subsections 6.0 (a), (b) and (c) hereof shall also insure the beneficiary or beneficiaries thereof.
6.2 Excess Insurance Premiums Tenant shall pay to Landlord as additional rent for the Lease Premises Zero percent (0%) of any excess in premiums for casualty and liability insurance (with all endorsements) paid annually by Landlord during the Lease term over the amount of [INSURANCE] ($[INSURANCE NUMERICAL]). Tenant shall be obligated to pay its share of only those annual premiums which relate to insurance coverage during the term of this Lease. Tenant's share of such excess premiums shall be paid by Tenant to Landlord within ten (10) days after Landlord bills Tenant therefore. Insurance premiums are included in the Rent as outlined in Section 4.0 Rent. Tenant will have no responsibility for additional insurance during the term unless the additional insurance is due to activities conducted by Tenant within the Premises.
6.3 Mutual Waiver of Subrogation Rights. Whenever (a) any loss, costs, damage or expense results from fire, explosion or any other casualty or occurrence is incurred by either of the parties to this Lease in connection with the Real Estate, and (b) such party is then covered in whole or in part by insurance with respect to such loss, cost, damage, or expense, then the party so insured hereby releases the other party from any liability it may have on account on such loss, cost, damage or expense to the extent of any amount recovered by reason of such insurance and waives any right of subrogation which might otherwise exist in or accrue to any person on account thereof, provided that such release of liability and waiver of the right of subrogation shall not be operative in any case where the effect thereof is to invalidate such insurance coverage or increase the cost thereof provided that in the case of increased cost the other shall have the right, within thirty (30) days following written notice, to pay such increased cost, thereupon keeping such release and waiver in full force and effect). At the request of Landlord, a mortgage clause may be included in said policies, covering Landlord's mortgagee.
6.4 The parties hereto agree to use good faith efforts to have any and all fire, extended coverage or any and all material damage or liability insurance which may be carried, endorsed with the following subrogation clause: This insurance shall not be invalidated should the insured waive in writing prior to a loss, any and all right of recovery against any party for loss occurring to the property described herein.
6.5 Landlord's Insurance. Landlord shall procure and maintain policies of insurance insuring the improvements situated upon the Real Estate against loss or damage by fire or other casualties. Said insurance shall cover loss of rents.
VII. DAMAGE OR DESTRUCTION
7.0 Landlord's Obligation to Rebuild. In the event the Leased Premises are damaged by fire, explosion or other casualty, Landlord shall commence the repair, restoration or rebuilding thereof within sixty (60) days of such damage and shall complete such restoration, repair or rebuilding within 150 days after the commencement thereof, provided that if construction is delayed because of changes, deletions, or additions in construction requested by Tenant, strikes, lockouts, casualties, acts of God, war material or labor shortages, Governmental regulation or control or other causes beyond the control of Landlord, the period for restoration, repair or rebuilding shall be extended for the amount of time Landlord is so delayed. If the casualty or the repair, restoration, or rebuilding caused thereby shall render the Leased Premises untenantable, in whole or in part, an equitable abatement in rent shall be allowed from the date when the damage occurred until the date when the Leased Premises are again fit for occupancy by Tenant. If such a fire, explosion or other casualty damages the building in which the Leased Premises are located to the extent of 50% or more thereof, Landlord may, in lieu of repairing, restoring or rebuilding the same, terminate this Lease within sixty (60) days after occurrence of the event causing the damage. In such event, the obligation of Tenant to pay rent and other charges end as of the date when the damage occurred.
VIII. CONDEMNATION
8.0 Taking of Whole. If the whole of the Leased Premises, or so much thereof, shall be taken or condemned for a public or quasipublic use or purpose by any competent authority and as a result thereof the balance of the Leased Premises cannot be used for the same purpose as expressed in Article III, then and in either of such events, the Lease term shall terminate when possession of the Leased Premises shall be so taken and surrendered and any award, compensation or damages (hereinafter sometimes called the "award"), shall be paid to and be the sole property of Landlord whether such award shall be made as compensation for diminution of the value of the leasehold or the fee of the Real Estate or otherwise and Tenant hereby assigns to Landlord all of Tenant's right, title and interest in and to any and all such award. Tenant shall continue to pay rent until the Lease term is terminated and any excess Impositions prepaid by Tenant shall be adjusted between the parties.
8.1 Partial Taking. If only a part of the Leased Premises shall be so taken or condemned, and as a result thereof, the balance of the Leased Premises can be used for the same purpose as expressed in Article III, this Lease shall not terminate and Landlord shall repair and restore the Leased Premises and all improvements thereon, provided, however, that if 50% or more of the building within which the Leased Premises are located shall be so taken or condemned. Landlord may terminate this Lease by giving written notice thereof to Tenant within 60 days after such taking. This lease and the term and estate hereby granted shall expire only on the date specified in any Notice of termination. Any portion of the award which has not been expended by Landlord for such repairing or restoration shall be retained by Landlord as Landlord's sole property. The rent shall be equitably abated following delivery of possession to the; condemning body.
IX. MAINTENANCE AND ALTERATIONS.
9.0 MAINTENANCE. Landlord shall keep and maintain the exterior walls, roof and structural members of the building of which the Leased Premises are a part, and the parking lot, sidewalk and landscaping on the Real Estate in good order and repair, except for loss by fire or other casualty, which loss is covered by Article VII of this Lease and except for any damage, repairs, maintenance or replacements caused by Tenant's misuse of the Leased Premises or Tenant's negligence. In addition, Landlord shall provide for exterior landscaping maintenance and remove snow accumulations from the parking areas. Tenant shall pay zero percent (0%) of the cost for landscape maintenance and replacements, parking lot maintenance, exterior light maintenance, fire alarm monitoring, repairs, testing, fire sprinkler testing and repairs and back flow inspections for the fire and domestic water services to be paid ten (10) days after receipt of Landlord's or Landlord's designated contractor's invoice. Landlord shall supply and Tenant shall pay Thirty Three percent (33%) of the Landlord's cost for snow removal and salting of the parking areas, drive isles, parking lot entrances, loading docks and drive in door areas. Tenant is responsible for removing snow accumulation and salting Tenant's side walks and the area immediately adjacent to the loading dock, drive in door and service doors, not plowed by Landlord contractor. Tenant shall keep and maintain the balance of the exterior and the entire interior in a clean and sanitary condition and maintain all heating, plumbing, electrical and mechanical systems of the Lease Premises and in good condition and repair. In addition, Tenant shall be responsible for all damage, repairs, maintenance, and replacements caused by the negligence or misuse of the Leased Premises by Tenant, Tenant's agents, servants, employees or invitees. Tenant shall fully comply with all health and police regulations in force, and shall conform with the rules and regulations of fire underwriters or their fire protection engineers. Tenant shall promptly remove any debris left in the parking area or other exterior areas of the Leased Premises by Tenant, its employees, agents or contractors.