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North Carolina Association of REALTORS®, Inc.
Tenant Initials ______ _______ Landlord Initials ______ ______
STANDARD FORM 592-T
Revised 7/2020
© 7/2020
COMMERCIAL LEASE AGREEMENT
(Single Tenant Facility)
(Note: This form is not intended to be used as a Sublease and SHOULD NOT be used in Sublease circumstances)
THIS COMMERCIAL LEASE AGREEMENT, including any and all addenda attached hereto (“Lease”), is by and between
___________________________________________________________________________________________________________,
a(n) ___________________________________________(“Landlord”),
(individual or State of formation and type of entity)
whose address is _________________________________________________________________________________________, and
_______________________________________________________________________________________________________, a(n)
__________________________________________________________________________________________________(“Tenant”).
(individual or State of formation and type of entity)
whose address is _____________________________________________________________________________________________
If this box is checked, the obligations of Tenant under this Lease are secured by the guaranty of
_____________________________________________________________ (name(s) of guarantor(s)) attached hereto and
incorporated herein by reference. (Note: Any guaranty should be prepared by an attorney at law.)
For and in consideration of the mutual promises set forth herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:
PREMISES
1. Landlord leases unto Tenant, and Tenant hereby leases and takes upon the terms and conditions which hereinafter appear, the
following described property, including any improvements located thereon (hereinafter called the “Premises”), to wit:
(Address): ___________________________________________________________________________________________________
___________________________________________________________________________________________________
All A portion of the property in Deed Reference: Book _________, Page No.________, __________________ County;
consisting of approximately _______________ acres.
Plat Reference: Lot(s) ____________________, Block or Section _________________, as shown on Plat Book or Slide
_______________ at Page(s) _______________, __________________ County, consisting of _______________ acres.
If this box is checked, Premises shall mean that property described on Exhibit A attached hereto and incorporated herewith by
reference.
(For information purposes only, the tax parcel number of the Premises is: _______________________________________________)
Occupancy Limitation: If this box is checked, notwithstanding any greater occupancy of the Premises which may be permitted by
any law, statute, ordinance, regulation, rule (including rules enacted pursuant to any private use restrictions), as the same may be
amended from time to time, Tenant shall not allow occupancy of the Premises to exceed _____ persons per ___________ square feet
in the Premises at any one time.
TERM
2. The term of this Lease shall commence on ___________________, 20____ (“Lease Commencement Date”), and shall end at 11:59
p.m. (based upon the time at the locale of the Premises) on _____________________, 20____, unless sooner terminated as herein
provided. The first Lease Year Anniversary shall be the date twelve (12) calendar months after the first day of the first full month
immediately following the Lease Commencement Date and successive Lease Year Anniversaries shall be the date twelve (12)
calendar months from the previous Lease Year Anniversary.
If this box is checked, Tenant shall have the option of renewing this Lease, upon written notice given to Landlord at least
days prior to the end of the then expiring term of this Lease, for additional term(s) of years each.
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Tenant Initials ______ _______ Landlord Initials ______ ______
STANDARD FORM 592-T
Revised 7/2020
© 7/2020
If this box is checked, Tenant shall have the option of renewing this Lease, upon written notice given to Landlord at least
days prior to the end of the then expiring term of this Lease, for additional term(s) as specified on Exhibit B.
Option to Lease- If this box is checked, Tenant, upon the payment of the sum of $______________________________________
(which sum is not rental or security deposit hereunder, but is consideration for this Option to Lease and is non-refundable under any
circumstances) shall have a period of days prior to the Lease Commencement Date (“Option Period”) in which to
inspect the Premises and make inquiry regarding such sign regulations, zoning regulations, utility availability, private restrictions or
permits or other regulatory requirements as Tenant may deem appropriate to satisfy itself as to the use of the Premises for Tenant’s
intended purposes. Tenant shall conduct all such on-site inspections, examinations, inquiries and other review of the Premises in a
good and workmanlike manner, shall repair any damage to the Premises caused by Tenant's entry and on-site inspections and shall
conduct same in a manner that does not unreasonably interfere with Landlord’s or any tenant's use and enjoyment of the Premises. In
that respect, Tenant shall make reasonable efforts to undertake on-site inspections outside of the hours any tenant's business is open to
the public and shall give prior notice to the tenant at the Premises of any entry onto the Premises for the purpose of conducting
inspections. Upon Landlord’s request, Tenant shall provide to Landlord evidence of general liability insurance. Tenant shall also
have a right to review and inspect all contracts or other agreements affecting or related directly to the Premises and shall be entitled to
review such books and records of Landlord that relate directly to the operation and maintenance of the Premises, provided, however,
that Tenant shall not disclose any information regarding the Premises (or any tenant therein) unless required by law and the same shall
be regarded as confidential, to any person, except to its attorneys, accountants, lenders and other professional advisors, in which case
Tenant shall obtain their agreement to maintain such confidentiality. Tenant assumes all responsibility for the acts of itself, its agents
or representatives in exercising its rights under this Option to Lease and agrees to indemnify and hold Seller harmless from any
damages resulting therefrom. This indemnification obligation of Tenant shall survive the termination of this Option to Lease or this
Lease. Tenant shall, at Tenant’s expense, promptly repair any damage to the Premises caused by Tenant's entry and on-site inspections. IF
TENANT CHOOSES NOT TO LEASE THE PREMISES, FOR ANY REASON OR NO REASON, AND PROVIDES
WRITTEN NOTICE TO LANDLORD THEREOF PRIOR TO THE EXPIRATION OF THE OPTION PERIOD, THEN
THIS LEASE SHALL TERMINATE AND NEITHER PARTY SHALL HAVE ANY FURTHER OBLIGATIONS
HEREUNDER AND LANDLORD SHALL RETURN TO TENANT ANY RENTAL OR SECURITY DEPOSIT PAID TO
LANDLORD HEREUNDER. Tenant shall be deemed to have exercised its Option to Lease and to be bound under the terms of this
Lease if (i) Tenant shall occupy the Premises prior to the expiration of the Option Period, whereupon the date of occupancy shall be
deemed the Lease Commencement Date, or (ii) Tenant shall not provide written notice to Landlord of its termination of this Lease prior to
the expiration of the Option Period.
RENTAL
3. Beginning on (“Rent Commencement Date”), Tenant agrees to pay Landlord (or its
Agent as directed by Landlord), without notice, demand, deduction or set off, an annual rental of $_______________________,
payable in equal monthly installments of $______________________________, in advance on the first day of each calendar month
during the term hereof. Upon execution of this Lease, Tenant shall pay to Landlord the first monthly installment of rent due
hereunder. Rental for any period during the term hereof which is less than one month shall be the pro-rated portion of the monthly
installment of rental due, based upon a 30 day month.
If this box is checked, the annual rental payable hereunder (and accordingly the monthly installments) shall be adjusted every
_______ Lease Year Anniversary by % over the amount then payable hereunder. In the event renewal of this Lease is
provided for in Section Paragraph 2 hereof and effectively exercised by Tenant, the rental adjustments provided herein shall apply to
the term of the Lease so renewed, or
If this box is checked, the annual rental payable hereunder (and accordingly the monthly installments) shall be adjusted every
Lease Year Anniversary by the greater of: (i) percent ( %) over the amount then payable hereunder,
or, (ii) the percentage increase (but not any decrease) in the numerical index of the “Consumer Price Index for All Urban Consumers”
(1982-84 = 100) published by the Bureau of Labor Statistics of the United States Department of Labor (“CPI”) for the immediately
preceding twelve (12) month period over the amount then payable hereunder.
If this box is checked, the annual rental payable hereunder (and accordingly the monthly installments) shall be adjusted every
_______ Lease Year Anniversary by $_________________ over the amount then payable hereunder. In the event renewal of this
Lease is provided for in Section Paragraph 2 hereof and effectively exercised by Tenant, the rental adjustments provided herein shall
apply to the term of the Lease so renewed.
If this box is checked, the annual rental payable hereunder (and accordingly the monthly installments) shall be adjusted as provided
on Exhibit B.
If this box is checked, Tenant shall pay all rental to Landlord’s Agent at the following address:
________________________________________________________________________________________________________
________________________________________________________________________________________________________
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Tenant Initials ______ _______ Landlord Initials ______ ______
STANDARD FORM 592-T
Revised 7/2020
© 7/2020
LATE CHARGES
4. If Landlord fails to receive full rental payment within ___________________ days after it becomes due, Tenant shall pay
Landlord, as additional rental, a late charge equal to________________ percent________________(%) of the overdue amount or
$____________________ whichever is greater, plus any actual bank fees incurred for dishonored payments. The parties agree that
such a late charge represents a fair and reasonable estimate of the cost Landlord will incur by reason of such late payment.
SECURITY DEPOSIT
5. Upon the execution of this Lease, Tenant shall deposit with Landlord the sum of $________________________ as a security
deposit which shall be held by Landlord as security for the full and faithful performance by Tenant of each and every term, covenant
and condition of this Lease. The security deposit does not represent payment of and Tenant shall not presume application of same as
payment of the last monthly installment of rental due under this Lease. Landlord shall have no obligation to segregate or otherwise
account for the security deposit except as provided in this Section Paragraph 5. If any of the rental or other charges or sums payable
by Tenant shall be over-due and unpaid or should payments be made by Landlord on behalf of Tenant, or should Tenant fail to
perform any of the terms of this Lease, then Landlord may, at its option, appropriate and apply the security deposit, or so much thereof
as may be necessary, to compensate toward the payment of the rents, charges or other sums due from Tenant, or towards any loss,
damage or expense sustained by Landlord resulting from such default on the part of the Tenant; and in such event Tenant upon
demand shall restore the security deposit to the amount set forth above in this Section Paragraph 5. In the event Tenant furnishes
Landlord with proof that all utility bills and other bills of Tenant related to the Premises have been paid through the date of Lease
termination, and performs all of Tenant’s other obligations under this Lease, the security deposit shall be returned to Tenant within
sixty (60) days after the date of the expiration or sooner termination of the term of this Lease and the surrender of the Premises by
Tenant in compliance with the provisions of this Lease.
If this box is checked, Agent shall hold the security deposit in trust and shall be entitled to the interest, if any, thereon.
UTILITY BILLS/SERVICE CONTRACTS
6. Landlord and Tenant agree that utility bills and service contracts (“Service Obligations”) for the Premises shall be paid by the party
indicated below as to each Service Obligation. In each instance, the party undertaking responsibility for payment of a Service
Obligation covenants that they will pay the applicable bills prior to delinquency. The responsibility to pay for a Service Obligation
shall include all metering, hook-up fees or other miscellaneous charges associated with establishing, installing and maintaining such
utility or contract in said party’s name. Within thirty (30) days of the Lease Commencement Date, Tenant shall provide Landlord with
a copy of any requested Tenant Service Obligation information.
Landlord
Tenant
Not Applicable
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Tenant Initials ______ _______ Landlord Initials ______ ______
STANDARD FORM 592-T
Revised 7/2020
© 7/2020
Landlord shall not be liable for injury to Tenant’s business or loss of income therefrom or for damage that may be sustained by the
person, merchandise or personal property of Tenant, its employees, agents, invitees or contractors or any other person in or about the
Premises, caused by or resulting from fire, steam, electricity, gas, water or rain, which may leak or flow from or into any part of the
Premises, or from the breakage, leakage, obstruction or other defects of any utility installations, air conditioning system or other
components of the Premises, except to the extent that such damage or loss is caused by Landlord’s gross negligence or willful
misconduct. Landlord represents and warrants that the heating, ventilation and air conditioning system(s) and utility installations
existing as of the Lease Commencement Date shall be in good order and repair. Subject to the provisions of this Section Paragraph 6,
Landlord shall not be liable in damages or otherwise for any discontinuance, failure or interruption of service to the Premises of
utilities or the heating, ventilation and air conditioning system(s) and Tenant shall have no right to terminate this Lease or withhold
rental because of the same.
RULES AND REGULATIONS
7. If this box is checked, the rules and regulations attached hereto (“Rules and Regulations”) are made a part of this Lease.
Tenant agrees to comply with all Rules and Regulations of Landlord in connection with the Premises which are in effect at the time of
the execution of the Lease or which may be from time to time promulgated by Landlord in its reasonable discretion, provided notice of
such new Rules and Regulations is given to Tenant in writing and the same are not in conflict with the terms and conditions of this
Lease.
PERMITTED USES
8. The permitted use of the Premises shall be:
(“Permitted Use”). The Premises shall be used and wholly occupied by Tenant solely for the purposes of conducting the Permitted
Use, and the Premises shall not be used for any other purposes unless Tenant obtains Landlord’s prior written approval of any change
in use. Landlord makes no representation or warranty regarding the suitability of the Premises for or the legality (under zoning or
other applicable ordinances) of the Permitted Use for the Premises, provided however, that Landlord does represent that it has no
contractual obligations with other parties which will materially interfere with or prohibit the Permitted Use of Tenant at the Premises.
At Tenant’s sole expense, Tenant shall procure, maintain and make available for Landlord’s inspection from time to time any
governmental license(s) or permit(s) required for the proper and lawful conduct of Tenant’s business in the Premises. Tenant shall not
cause or permit any waste to occur in the Premises and shall not overload the floor, or any mechanical, electrical, plumbing or utility
systems serving the Premises. Tenant shall keep the Premises, and every part thereof, in a clean and wholesome condition, free from
any objectionable noises, loud music, objectionable odors or nuisances.
TAXES AND INSURANCE
(Note: The following box should only be checked if there are no boxes checked below in Section Paragraph 9.)
If this box is checked, Tenant shall have no responsibility to reimburse Landlord for taxes or insurance.
9. Landlord shall pay all taxes (including but not limited to, ad valorem taxes, special assessments and any other governmental
charges) on the Premises and shall procure and pay for such commercial general liability, broad form fire and extended and special
perils insurance with respect to the Premises as Landlord in its reasonable discretion may deem appropriate. Tenant shall reimburse
Landlord for all taxes and insurance as provided herein within fifteen (15) days after receipt of notice from Landlord as to the amount
due. Tenant shall be solely responsible for insuring Tenant’s personal and business property and for paying any taxes or governmental
assessments levied thereon. Tenant shall reimburse Landlord for taxes and insurance during the term of this Lease, and any extension
or renewal thereof. If boxes are checked below, the manner of reimbursement shall be as indicated:
Taxes
The amount by which all taxes (including but not limited to, ad valorem taxes, special assessments and any other
governmental charges) on the Premises for each tax year exceed all taxes on the Premises for the tax year __________; or
All taxes (including but not limited to, ad valorem taxes, special assessments and any other governmental charges) on the
Premises for each tax year.
If the final Lease Year of the term fails to coincide with the tax year, then any excess for the tax year during which the term ends shall
be reduced by the pro rata part of such tax year beyond the Lease term. If such taxes for the year in which the Lease terminates are
not ascertainable before payment of the last month’s rental, then the amount of such taxes assessed against the Premises for the
previous tax year shall be used as a basis for determining the pro rata share, if any, to be paid by Tenant for that portion of the last
Lease Year.
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Tenant Initials ______ _______ Landlord Initials ______ ______
STANDARD FORM 592-T
Revised 7/2020
© 7/2020
If this box is checked, Tenant shall reimburse Landlord for taxes by paying to Landlord, beginning on the Rent
Commencement Date and on the first day of each calendar month during the term hereof, an amount equal to one-
twelfth (1/12) of the then current tax payments for the Premises. Upon receipt of bills, statements or other evidence
of taxes due, Landlord shall pay or cause to be paid the taxes. If at any time the reimbursement payments by Tenant
hereunder do not equal the amount of taxes paid by Landlord, Tenant shall upon demand pay to Landlord an amount
equal to the deficiency or Landlord shall refund to Tenant any overpayment (as applicable) as documented by
Landlord. Landlord shall have no obligation to segregate or otherwise account for the tax reimbursements paid
hereunder except as provided in this Section Paragraph 9.
Insurance
the excess cost of commercial general liability, broad form fire and extended and special perils insurance with respect to the
Premises over the cost of the first year of the Lease term for each subsequent year during the term of this Lease; or
the cost of all commercial general liability, broad form fire and extended and special perils insurance with respect to the
Premises.
If this box is checked, Tenant shall reimburse Landlord for insurance by paying to Landlord, beginning on the Rent
Commencement Date and on the first day of each calendar month during the term hereof, an amount equal to one-
twelfth (1/12) of the then current insurance premiums for the Premises. Upon receipt of bills, statements or other
evidence of insurance premiums due, Landlord shall pay or cause to be paid the insurance premiums. If at any time
the reimbursement payments by Tenant hereunder do not equal the amount of insurance premiums paid by Landlord,
Tenant shall upon demand pay to Landlord an amount equal to the deficiency or Landlord shall refund to Tenant any
overpayment (as applicable) as documented by Landlord. Landlord shall have no obligation to segregate or
otherwise account for the insurance premium reimbursements paid hereunder except as provided in this Section
Paragraph 9.
Provided however, notwithstanding any provision of the foregoing, that in the event Tenant’s use of the Premises results in an increase
in the rate of insurance on the Premises, Tenant shall pay to Landlord, upon demand and as additional rental, the amount of any such
increase.
INSURANCE; WAIVER; INDEMNITY
10. (a) During the term of this Lease, Tenant shall maintain commercial general liability insurance coverage (occurrence coverage)
with broad form contractual liability coverage and with coverage limits of not less than
combined single limit, per occurrence, specifically including liquor liability insurance covering consumption of alcoholic beverages
by customers of Tenant should Tenant choose to sell alcoholic beverages. Such policy shall insure Tenant’s performance of the
indemnity provisions of this Lease, but the amount of such insurance shall not limit Tenant’s liability nor relieve Tenant of any
obligation hereunder. All policies of insurance provided for herein shall name as “additional insureds” Landlord, Landlord’s Agent,
all mortgagees of Landlord and such other individuals or entities as Landlord may from time to time designate upon written notice to
Tenant. Tenant shall provide to Landlord, at least thirty (30) days prior to expiration, certificates of insurance to evidence any renewal
or additional insurance procured by Tenant. Tenant shall provide evidence of all insurance required under this Lease to Landlord prior
to the Lease Commencement Date.
(b) Landlord (for itself and its insurer) waives any rights, including rights of subrogation, and Tenant (for itself and its
insurer) waives any rights, including rights of subrogation, each may have against the other for compensation of any loss or damage
occasioned to Landlord or Tenant arising from any risk generally covered by the “all risks” insurance required to be carried by
Landlord and Tenant. The foregoing waivers of subrogation shall be operative only so long as available in the State of North
Carolina. The foregoing waivers shall be effective whether or not the parties maintain the insurance required to be carried pursuant to
this Lease.
(c) Except as otherwise provided in Section Paragraph 10(b), Tenant indemnifies Landlord for damages proximately caused
by the negligence or wrongful conduct of Tenant and Tenant’s employees, agents, invitees or contractors. Except as otherwise
provided in Section Paragraph 10(b), Landlord indemnifies Tenant for damages proximately caused by the negligence or wrongful
conduct of Landlord and Landlord’s employees, agents, invitees or contractors. The indemnity provisions in this Section Paragraph 10
cover personal injury and property damage and shall bind the employees, agents, invitees or contractors of Landlord and Tenant (as
the case may be). The indemnity obligations in this Section Paragraph 10 shall survive the expiration or earlier termination of this
Lease.
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STANDARD FORM 592-T
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REPAIRS BY LANDLORD
11. Landlord agrees to keep in good repair the roof, foundation, structural supports and exterior walls of the buildings located on the
Premises (exclusive of all glass and exclusive of all exterior doors) and, except as may be specifically allocated to Tenant in Section
Paragraph 12 herein, Landlord agrees to be responsible for capital replacements on the Premises; provided that Landlord shall not be
responsible for repairs or capital replacements rendered necessary by the negligence or intentional wrongful acts of Tenant, its
employees, agents, invitees or contractors. Tenant shall promptly report in writing to Landlord any defective condition known to it
which Landlord is required to repair or replace and failure to report such conditions shall make Tenant responsible to Landlord for any
liability incurred by Landlord by reason of such conditions.
(Note: Should Landlord and Tenant need to further detail the allocation of responsibility hereunder, the Special Stipulations
box at the end of the Lease should be checked and such allocation should be specified on an Exhibit B.)
REPAIRS BY TENANT
12. (a) Tenant accepts the Premises in their present condition and as suited for the Permitted Use and Tenant’s intended
purposes. Tenant, throughout the initial term of this Lease, and any extension or renewal thereof, at its expense, shall maintain in good
order and repair the Premises, (except those repairs expressly required to be made by Landlord hereunder), specifically including but
not limited to any building and other improvements located thereon, all light bulb and ballast replacements, plumbing fixtures and
systems repairs within the Premises and water heater repairs. Tenant further agrees to care for the grounds around the building,
including the mowing of grass, care of shrubs and general landscaping. Tenant shall use only licensed contractors for repairs where
such license is required. Landlord shall have the right to approve the contractor as to any repairs in excess of $ .
If this box is checked, Tenant, at its expense, shall maintain the heating, ventilation and air conditioning system(s)
(“HVAC Systems”) in good order and repair, including but not limited to replacement of parts, compressors, air handling units and
heating units. Tenant shall be required to maintain a preventive maintenance contract for the HVAC Systems on terms and with a
provider reasonably acceptable to Landlord, which contract shall call for at least semi-annual maintenance, inspection and repair of
such HVAC Systems (“HVAC Contract”). Tenant shall provide a copy of the HVAC Contract to Landlord annually. Provided that:
(i) Tenant has kept the HVAC Contract in force, and, (ii) Tenant shall have obtained Landlord’s prior written approval of the
contractor and the repair or replacement expenses for the HVAC Systems, then, for any calendar year, Tenant shall be responsible for
the cost of repairing or replacing the HVAC Systems (or any major component thereof) up to $ per HVAC System with a
maximum repair or replacement cost of $ for all HVAC Systems (“HVAC Cap”) in such year. Tenant shall
provide Landlord copies of all records related to the servicing, maintenance, repair, and replacement of the HVAC Systems upon the
occurrence of any service, maintenance, repair, or replacement of the HVAC Systems. Landlord shall be responsible for paying the
repair cost or replacement cost of such HVAC System in excess of the HVAC Cap.
If this box is checked, Landlord, at its expense, shall maintain the heating, ventilation and air conditioning system(s)
(“HVAC Systems”) in good order and repair, including but not limited to replacement of parts, compressors, air handling units and
heating units. Provided that, Tenant shall reimburse Landlord for the cost of repairing or replacing the HVAC Systems (or any major
component thereof) an amount up to $ per HVAC System with a maximum replacement cost of $
for all HVAC Systems (“HVAC Cap”) in such year. Landlord shall be responsible for paying the repair cost or replacement cost of
such HVAC System in excess of the HVAC Cap. Tenant shall reimburse Landlord for the amount of the HVAC Cap payable
hereunder upon the written request of Landlord.
(b) Tenant, Tenant’s employees, agents, invitees or contractors shall take no action which may void any manufacturers or
installers warranty with relation to the Premises. Tenant shall indemnify and hold Landlord harmless from any liability, claim,
demand or cause of action arising on account of Tenant’s breach of the provisions of this Section Paragraph 12.
ALTERATIONS
13. Tenant shall not make any alterations, additions, or improvements to the Premises without Landlord’s prior written consent,
which consent shall not be unreasonably withheld, conditioned or delayed. Landlord, in connection with Landlord’s consent to same,
may designate any such alterations, additions, or improvements to the Premises as subject to removal upon the expiration or earlier
termination of this Lease, in which case, upon Landlord’s written notice to Tenant to remove same at the expiration or earlier
termination of this Lease, Tenant shall do so and restore the Premises to the condition that existed prior to such alterations, additions,
or improvements being made. Tenant shall promptly remove any alterations, additions, or improvements constructed in violation of
this Section Paragraph 13 upon Landlord’s written request. All approved alterations, additions, and improvements will be
accomplished in a good and workmanlike manner, in conformity with all applicable laws and regulations, and by a contractor
approved by Landlord, free of any liens or encumbrances. Tenant has no authority to allow, will not permit, and will indemnify
Landlord and hold it harmless from, any contractors’, laborers’, mechanics’, or materialmen’s liens, or any other similar liens filed
against the Premises in connection with any alterations, additions, or improvements to the Premises.
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SURRENDERING THE PREMISES
14. Tenant shall schedule its move date with Landlord, in writing, in advance of the expiration or earlier termination of this Lease.
Tenant agrees to return the Premises to Landlord at the expiration or earlier termination of this Lease, broom clean and in as good
condition and repair as on the Lease Commencement Date, natural wear and tear, damage by storm, fire, lightning, earthquake or other
casualty alone excepted. By written notice to Tenant, Landlord may require Tenant to remove any alterations, additions or
improvements at the expiration or earlier termination of this Lease (whether or not made with Landlord’s consent and whether or not
designated via Section Paragraph 13 as subject to removal) and to restore the Premises to its prior condition as of the Lease
Commencement Date, all at Tenant’s expense. All alterations, additions and improvements which Landlord has not required Tenant
to remove shall become Landlord’s property and shall be surrendered to Landlord upon the termination of this Lease, except that
Tenant may remove any of Tenant’s personal property or trade fixtures which can be removed without material damage to the
Premises. Tenant shall repair, at Tenant’s expense, any damage to the Premises caused by the removal of any such personal property
or trade fixtures.
(Note: Should Landlord and Tenant need to further enumerate their intent/understanding as to the status of items or property
as fixtures, trade fixtures, or personal property hereunder, the Special Stipulations box at the end of the Lease should be
checked and such enumeration should be specified by listing same by category on an Exhibit B.)
DESTRUCTION OF OR DAMAGE TO PREMISES
15. (a) If the Premises are totally destroyed by storm, fire, lightning, earthquake or other casualty, Landlord shall have the right
to terminate this Lease on written notice to Tenant within thirty (30) days after such destruction and this Lease shall terminate as of
the date of such destruction and rental shall be accounted for as between Landlord and Tenant as of that date.
(b) If the Premises are damaged but not wholly destroyed by any such casualties or if the Landlord does not elect to
terminate the Lease under Section Paragraph 15(a) above, Landlord shall commence (or shall cause to be commenced) reconstruction
of the Premises within one hundred twenty (120) days after such occurrence and prosecute the same diligently to completion, not to
exceed two hundred seventy (270) days from the date upon which Landlord receives applicable permits and insurance proceeds. In
the event Landlord shall fail to substantially complete reconstruction of the Premises within said two hundred seventy (270) day
period, Tenant’s sole remedy shall be to terminate this Lease.
(c) In the event of any casualty at the Premises during the last one (1) year of the Lease Term, Landlord and Tenant each
shall have the option to terminate this Lease on written notice to the other of exercise thereof within sixty (60) days after such
occurrence.
(d) In the event of reconstruction of the Premises, Tenant shall continue the operation of its business in the Premises during
any such period to the extent reasonably practicable from the standpoint of prudent business management, and the obligation of
Tenant to pay annual rental and any other sums due under this Lease shall remain in full force and effect during the period of
reconstruction. The annual rental and other sums due under this Lease shall be abated proportionately with the degree to which
Tenant’s use of the Premises is impaired, commencing from the date of destruction and continuing during the period of such
reconstruction. Tenant shall not be entitled to any compensation or damages from Landlord for loss of use of the whole or any part of
the Premises, Tenant’s personal property, or any inconvenience or annoyance occasioned by such damage, reconstruction or
replacement.
(e) In the event of the termination of this Lease under any of the provisions of this Section Paragraph 15, both Landlord and
Tenant shall be released from any liability or obligation under this Lease arising after the date of termination, except as otherwise
provided for in this Lease.
GOVERNMENTAL ORDERS
16. Tenant, at its own expense, agrees to comply with: (a) any law, statute, ordinance, regulation, rule, requirement, order, court
decision or procedural requirement of any governmental or quasi-governmental authority having jurisdiction over the Premises, (b) the
rules and regulations of any applicable governmental insurance authority or any similar body, relative to the Premises and Tenant’s
activities therein; (c) provisions of or rules enacted pursuant to any private use restrictions, as the same may be amended from time to
time and (d) the Americans with Disabilities Act (42 U.S.C.S. §12101, et seq.) and the regulations and accessibility guidelines enacted
pursuant thereto, as the same may be amended from time to time. Landlord and Tenant agree, however, that if in order to comply with
such requirements the cost to Tenant shall exceed a sum equal to one (1) year’s rent, then Tenant may terminate this Lease by giving
written notice of termination to Landlord in accordance with the terms of this Lease, which termination shall become effective sixty
(60) days after receipt of such notice and which notice shall eliminate the necessity of compliance with such requirements, unless,
within thirty (30) days of receiving such notice, Landlord agrees in writing to be responsible for such compliance, at its own expense,
and commences compliance activity, in which case Tenant’s notice given hereunder shall not terminate this Lease.
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CONDEMNATION
17. (a) If the entire Premises shall be appropriated or taken under the power of eminent domain by any governmental or quasi-
governmental authority or under threat of and in lieu of condemnation (hereinafter, “taken” or “taking”), this Lease shall terminate as
of the date of such taking, and Landlord and Tenant shall have no further liability or obligation arising under this Lease after such
date, except as otherwise provided for in this Lease.
(b) If more than twenty-five percent (25%) of the floor area of any building of the Premises is taken, or if by reason of any
taking, regardless of the amount so taken, the remainder of the Premises is not one undivided space or is rendered unusable for the
Permitted Use, either Landlord or Tenant shall have the right to terminate this Lease as of the date Tenant is required to vacate the
portion of the Premises taken, upon giving notice of such election within thirty (30) days after receipt by Tenant from Landlord of
written notice that said Premises have been or will be so taken. In the event of such termination, both Landlord and Tenant shall be
released from any liability or obligation under this Lease arising after the date of termination, except as otherwise provided for in this
Lease.
(c) Landlord and Tenant, immediately after learning of any taking, shall give notice thereof to each other.
(d) If this Lease is not terminated on account of a taking as provided herein above, then Tenant shall continue to occupy that
portion of the Premises not taken and the parties shall proceed as follows: (i) at Landlord’s cost and expense and as soon as
reasonably possible, Landlord shall restore (or shall cause to be restored) the Premises remaining to a complete unit of like quality and
character as existed prior to such appropriation or taking, and (ii) the annual rent provided for in Section Paragraph 3 and other sums
due under the Lease shall be reduced on an equitable basis, taking into account the relative values of the portion taken as compared to
the portion remaining. Tenant waives any statutory rights of termination that may arise because of any partial taking of the Premises.
(e) Landlord shall be entitled to the entire condemnation award for any taking of the Premises or any part thereof. Tenant’s
right to receive any amounts separately awarded to Tenant directly from the condemning authority for the taking of its merchandise,
personal property, relocation expenses and/or interests in other than the real property taken shall not be affected in any manner by the
provisions of this Section Paragraph 17, provided Tenant’s award does not reduce or affect Landlord’s award and provided further,
Tenant shall have no claim for the loss of its leasehold estate.
ASSIGNMENT AND SUBLETTING
18. Tenant shall not assign this Lease or any interest hereunder or sublet the Premises or any part thereof, or permit the use of the
Premises by any party other than the Tenant, without Landlord’s prior written consent, which consent shall not be unreasonably
withheld, conditioned or delayed. Tenant shall pay to Landlord, concurrently with any request for consent to assignment or sublet, a
non-refundable fee of $ as payment to Landlord for its review and processing of the request. In addition, Tenant
shall pay to Landlord any legal fees and expenses incurred by Landlord in connection with the proposed assignment or sublet, to the
extent such amounts exceed $ . Consent to any assignment or sublease shall not impair this provision and all
later assignments or subleases shall be made likewise only on the prior written consent of Landlord. No sublease or assignment by
Tenant shall relieve Tenant of any liability hereunder.
EVENTS OF DEFAULT
19. The happening of any one or more of the following events (hereinafter any one of which may be referred to as an “Event of
Default”) during the term of this Lease, or any renewal or extension thereof, shall constitute a breach of this Lease on the part of the
Tenant: (a) Tenant fails to pay when due the rental or any other monetary obligation as provided for herein; (b) Tenant abandons or
vacates the Premises; (c) Tenant fails to comply with or abide by and perform any non-monetary obligation imposed upon Tenant
under this Lease within thirty (30) days after written notice of such breach; (d) Tenant is adjudicated bankrupt; (e) A permanent
receiver is appointed for Tenant’s property and such receiver is not removed within sixty (60) days after written notice from Landlord
to Tenant to obtain such removal; (f) Tenant, either voluntarily or involuntarily, takes advantage of any debt or relief proceedings
under any present or future law, whereby the rent or any part thereof is, or is proposed to be, reduced or payment thereof deferred and
such proceeding is not dismissed within sixty (60) days of the filing thereof; (g) Tenant makes an assignment for benefit of creditors;
or (h) Tenant’s effects are levied upon or attached under process against Tenant, which is not satisfied or dissolved within thirty (30)
days after written notice from Landlord to Tenant to obtain satisfaction thereof.
REMEDIES UPON DEFAULT
20. Upon the occurrence of Event of Default, Landlord may pursue any one or more of the following remedies separately or
concurrently, without prejudice to any other remedy herein provided or provided by law: (a) Landlord may terminate this Lease by
giving written notice to Tenant and upon such termination shall be entitled to recover from Tenant damages as may be permitted under
applicable law; or (b) Landlord may terminate this Lease by giving written notice to Tenant and, upon such termination, shall be
entitled to recover from the Tenant damages in an amount equal to all rental which is due and all rental which would otherwise have
become due throughout the remaining term of this Lease, or any renewal or extension thereof (as if this Lease had not been
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terminated); or (c) Landlord, as Tenant’s agent, without terminating this Lease, may enter upon and rent the Premises, in whole or in
part, at the best price obtainable by reasonable effort, without advertisement and by private negotiations and for any term Landlord
deems proper, with Tenant being liable to Landlord for the deficiency, if any, between Tenant’s rent hereunder and the price obtained
by Landlord on reletting, provided however, that Landlord shall not be considered to be under any duty by reason of this provision to
take any action to mitigate damages by reason of Tenant’s default and expressly shall have no duty to mitigate Tenant’s damages. No
termination of this Lease prior to the normal ending thereof, by lapse of time or otherwise, shall affect Landlord’s right to collect rent
for the period prior to termination thereof. Tenant acknowledges and understands that Landlord’s acceptance of partial rental will not
waive Tenant’s breach of this Lease or limit Landlord’s rights against Tenant hereunder or Landlord’s right to evict Tenant through a
summary ejectment proceeding, whether filed before or after Landlord’s acceptance of any such partial rental.
EXTERIOR SIGNS
21. Tenant shall place no signs upon the outside walls, doors or roof of the Premises, except with the express written consent of the
Landlord in Landlord’s sole discretion. Any consent given by Landlord shall expressly not be a representation of or warranty of any
legal entitlement to signage at the Premises. Any and all signs placed on the Premises by Tenant shall be maintained in compliance
with governmental rules and regulations governing such signs and Tenant shall be responsible to Landlord for any damage caused by
installation, use or maintenance of said signs, and all damage incident to removal thereof.
LANDLORD’S ENTRY OF PREMISES
22. Landlord may advertise the Premises “For Rent” _______________ days before the termination of this Lease. Landlord may
enter the Premises upon prior notice at reasonable hours to exhibit same to prospective purchasers or tenants, to make repairs required
of Landlord under the terms hereof, for reasonable business purposes and otherwise as may be agreed by Landlord and Tenant.
Landlord may enter the Premises at any time without prior notice, in the event of an emergency or to make emergency repairs to the
Premises. Upon request of Landlord, Tenant shall provide Landlord with a functioning key to the Premises and shall replace such key
if the locks to the Premises are changed.
QUIET ENJOYMENT
23. So long as Tenant observes and performs the covenants and agreements contained herein, it shall at all times during the Lease
term peacefully and quietly have and enjoy possession of the Premises, subject to the terms hereof.
HOLDING OVER
24. If Tenant remains in possession of the Premises after expiration of the term hereof, Tenant shall be a tenant at sufferance and there
shall be no renewal of this Lease by operation of law. In such event, commencing on the date following the date of expiration of the
term, the monthly rental payable under Section Paragraph 3 above shall for each month, or fraction thereof during which Tenant so
remains in possession of the Premises, be twice the monthly rental otherwise payable under Section Paragraph 3 above.
ENVIRONMENTAL LAWS
25. (a) Tenant covenants that with respect to any Hazardous Materials (as defined below) it will comply with any and all
federal, state or local laws, ordinances, rules, decrees, orders, regulations or court decisions relating to hazardous substances,
hazardous materials, hazardous waste, toxic substances, environmental conditions on, under or about the Premises or soil and ground
water conditions, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980,
the Resource Conservation and Recovery Act, the Hazardous Materials Transportation Act, any other legal requirement concerning
hazardous or toxic substances, and any amendments to the foregoing (collectively, all such matters being “Hazardous Materials
Requirements”). Tenant shall remove from the Premises, all Hazardous Materials that were placed on the Premises by Tenant or
Tenant’s employees, agents, invitees or contractors, either after their use by Tenant or upon the expiration or earlier termination of this
Lease, in compliance with all Hazardous Materials Requirements.
(b) Tenant shall be responsible for obtaining all necessary permits in connection with its use, storage and disposal of
Hazardous Materials, and shall develop and maintain, and where necessary file with the appropriate authorities, all reports, receipts,
manifest, filings, lists and invoices covering those Hazardous Materials and Tenant shall provide Landlord with copies of all such
items upon request. Tenant shall provide within five (5) days after receipt thereof, copies of all notices, orders, claims or other
correspondence from any federal, state or local government or agency alleging any violation of any Hazardous Materials
Requirements by Tenant, or related in any manner to Hazardous Materials. In addition, Tenant shall provide Landlord with copies of
all responses to such correspondence at the time of the response.
(c) Tenant hereby indemnifies and holds harmless Landlord, its successors and assigns from and against any and all losses,
liabilities, damages, injuries, penalties, fines, costs, expenses and claims of any and every kind whatsoever (including attorney’s fees
and costs) paid, incurred or suffered by, or asserted against Landlord as a result of any claim, demand or judicial or administrative
action by any person or entity (including governmental or private entities) for, with respect to, or as a direct or indirect result of, the
presence on or under or the escape, seepage, leakage, spillage, discharge, emission or release from the Premises of any Hazardous
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Materials caused by Tenant or Tenant’s employees, agents, invitees or contractors. This indemnity shall also apply to any release of
Hazardous Materials caused by a fire or other casualty to the Premises if such Hazardous Materials were stored on the Premises by
Tenant, its agents, employees, invitees or successors in interest.
(d) For purposes of this Lease, “Hazardous Materials” means any chemical, compound, material, substance or other matter
that: (i) is defined as a hazardous substance, hazardous material or waste, or toxic substance pursuant to any Hazardous Materials
Requirements, (ii) is regulated, controlled or governed by any Hazardous Materials Requirements, (iii) is petroleum or a petroleum
product, or (iv) is asbestos, formaldehyde, a radioactive material, drug, bacteria, virus, or other injurious or potentially injurious
material (by itself or in combination with other materials).
(e) The warranties and indemnities contained in this Section Paragraph 25 shall survive the termination of this Lease.
SUBORDINATION; ATTORNMENT; ESTOPPEL
26. (a) This Lease and all of Tenant’s rights hereunder are and shall be subject and subordinate to all currently existing and
future mortgages affecting the Premises. Within ten (10) days after the receipt of a written request from Landlord or any Landlord
mortgagee, Tenant shall confirm such subordination by executing and delivering Landlord and Landlord’s mortgagee a recordable
subordination agreement and such other documents as may be reasonably requested, in form and content satisfactory to Landlord and
Landlord’s mortgagee. Provided, however, as a condition to Tenant’s obligation to execute and deliver any such subordination
agreement, the applicable mortgagee must agree that mortgagee shall not unilaterally, materially alter this Lease and this Lease shall
not be divested by foreclosure or other default proceedings thereunder so long as Tenant shall not be in default under the terms of this
Lease beyond any applicable cure period set forth herein. Tenant acknowledges that any Landlord mortgagee has the right to
subordinate at any time its interest in this Lease and the leasehold estate to that of Tenant, without Tenant’s consent.
(b) If Landlord sells, transfers, or conveys its interest in the Premises or this Lease, or if the same is foreclosed judicially or
nonjudicially, or otherwise acquired, by a Landlord mortgagee, upon the request of Landlord or Landlord’s successor, Tenant shall
attorn to said successor, provided said successor accepts the Premises subject to this Lease. Tenant shall, upon the request of Landlord
or Landlord’s successor, execute an attornment agreement confirming the same, in form and substance acceptable to Landlord or
Landlord’s successor and Landlord shall thereupon be released and discharged from all its covenants and obligations under this Lease,
except those obligations that have accrued prior to such sale, transfer or conveyance; and Tenant agrees to look solely to the successor
in interest of Landlord for the performance of those covenants accruing after such sale, transfer or conveyance. Such agreement shall
provide, among other things, that said successor shall not be bound by (a) any prepayment of more than one (1) month’s rental (except
the Security Deposit) or (b) any material amendment of this Lease made after the later of the Lease Commencement Date or the date
that such successor’s lien or interest first arose, unless said successor shall have consented to such amendment.
(c) Within ten (10) days after request from Landlord, Tenant shall execute and deliver to Landlord an estoppel certificate (to
be prepared by Landlord and delivered to Tenant) with appropriate facts then in existence concerning the status of this Lease and
Tenant’s occupancy, and with any exceptions thereto noted in writing by Tenant. Tenant’s failure to execute and deliver the Estoppel
Certificate within said ten (10) day period shall be deemed to make conclusive and binding upon Tenant in favor of Landlord and any
potential mortgagee or transferee the statements contained in such estoppel certificate without exception.
ABANDONMENT
27. Tenant shall not abandon the Premises at any time during the Lease term. If Tenant shall abandon the Premises or be dispossessed
by process of law, any personal property belonging to Tenant and left on the Premises, at the option of Landlord, shall be deemed
abandoned, and available to Landlord to use or sell to offset any rent due or any expenses incurred by removing same and restoring the
Premises.
NOTICES
28. All notices required or permitted under this Lease shall be in writing and shall be personally delivered or sent by U.S. certified
mail, return receipt requested, postage prepaid. Notices to Tenant shall be delivered or sent to the address shown at the beginning of
this Lease, except that upon Tenant taking possession of the Premises, then the Premises shall be Tenant’s address for such purposes.
Notices to Landlord shall be delivered or sent to the address shown at the beginning of this Lease and notices to Agent, if any, shall be
delivered or sent to the address set forth in Section Paragraph 3 hereof. All notices shall be effective upon delivery. Any party may
change its notice address upon written notice to the other parties, given as provided herein.
BROKERS
29. Except as expressly provided herein, Tenant and Landlord agree to indemnify and hold each other harmless from any and all
claims of brokers, consultants or real estate agents by, through or under the indemnifying party for fees or commissions arising out of
the lease of the Property to Tenant. Tenant and Landlord represent and warrant to each other that: (i) except as to the brokers
designated below (“Brokers”), they have not employed nor engaged any brokers, consultants or real estate agents to be involved in this
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transaction and (ii) that the compensation of the Brokers is established by and shall be governed by separate agreements entered into
as amongst the Brokers, the Tenant and/or the Landlord.
_____________________________________________________________________________(“Listing Agency”),
___________________________________________________(“Listing Agent” – License # )
Acting as: Landlord’s Agent; Dual Agent
and _________________________________________________________________________ (“Leasing Agency”),
_____________________________________________________ (“Leasing Agent”- License # )
Acting as: Tenant’s Agent; Landlord’s (Sub)Agent; Dual Agent
GENERAL TERMS
30. (a) “Landlord” as used in this Lease shall include the undersigned, its heirs, representatives, assigns and successors in title to
the Premises. “Agent” as used in this Lease shall mean the party designated as same in Section Paragraph 3, its heirs, representatives,
assigns and successors. “Tenant” shall include the undersigned and its heirs, representatives, assigns and successors, and if this Lease
shall be validly assigned or sublet, shall include also Tenant’s assignees or sublessees as to the Premises covered by such assignment
or sublease. “Landlord”, “Tenant”, and “Agent” include male and female, singular and plural, corporation, partnership or individual,
as may fit the particular parties.
(b) No failure of Landlord to exercise any power given Landlord hereunder or to insist upon strict compliance by Tenant of
its obligations hereunder and no custom or practice of the parties at variance with the terms hereof shall constitute a waiver of
Landlord’s right to demand exact compliance with the terms hereof. All rights, powers and privileges conferred hereunder upon
parties hereto shall be cumulative and not restrictive of those given by law.
(c) Time is of the essence in this Lease.
(d) This Lease may be executed in one or more counterparts, which taken together, shall constitute one and the same original
document. Copies of original signature pages of this Lease may be exchanged via facsimile or e-mail, and any such copies shall
constitute originals. This Lease constitutes the sole and entire agreement among the parties hereto and no modification of this Lease
shall be binding unless in writing and signed by all parties hereto. The invalidity of one or more provisions of this Lease shall not
affect the validity of any other provisions hereof and this Lease shall be construed and enforced as if such invalid provisions were not
included.
(e) Each signatory to this Lease represents and warrants that he or she has full authority to sign this Lease and such
instruments as may be necessary to effectuate any transaction contemplated by this Lease on behalf of the party for whom he or she
signs and that his or her signature binds such party. The parties acknowledge and agree that: (i) the initials lines at the bottom of each
page of this Lease are merely evidence of their having reviewed the terms of each page, and (ii) the complete execution of such initials
lines shall not be a condition of the effectiveness of this Lease.
(f) Upon request by either Landlord or Tenant, the parties hereto shall execute a short form lease (memorandum of lease) in
recordable form, setting forth such provisions hereof (other than the amount of annual rental and other sums due) as either party may
wish to incorporate. The cost of recording such memorandum of lease shall be borne by the party requesting execution of same.
(g) If legal proceedings are instituted to enforce any provision of this Lease, the prevailing party in the proceeding shall be
entitled to recover from the non-prevailing party reasonable attorneys fees and court costs incurred in connection with the proceeding.
SPECIAL STIPULATIONS
Note: Under North Carolina law, real estate agents are not permitted to draft lease provisions
If this box is checked, additional terms of this Lease are set forth on Exhibit B attached hereto and incorporated herein by
reference. (Note: Under North Carolina law, real estate agents are not permitted to draft lease provisions)
If this box is checked, improvements to the Premises to be provided by Landlord are set forth on Exhibit C attached
hereto and incorporated herein by reference.
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THIS DOCUMENT IS A LEGAL DOCUMENT. EXECUTION OF THIS DOCUMENT HAS LEGAL CONSEQUENCES THAT
COULD BE ENFORCEABLE IN A COURT OF LAW. THE NORTH CAROLINA ASSOCIATION OF REALTORS® MAKES
NO REPRESENTATIONS CONCERNING THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS
DOCUMENT OR THE TRANSACTION TO WHICH IT RELATES AND RECOMMENDS THAT YOU CONSULT YOUR
ATTORNEY.
IN WITNESS WHEREOF, the parties hereto have hereunto caused this Lease to be duly executed.
LANDLORD:
Individual Business Entity
_____________________________________________ ______________________________________________
(Name of Firm)
Date: ___________________________________________
________________________________________________ By: ______________________________________________
Date: ___________________________________________
Title: _____________________________________________
Date:_____________________________________________
TENANT:
Individual Business Entity
___________________________________________ _______________________________________________
(Name of Firm)
Date:_____________________________________________ By:_________________________________________
____________________________________________ Title:_____________________________________________
Date: Date:_____________________________________________