Operations Facility Rental Agreement
Operations Facility Rental Agreement
This Operations Facility Rental Agreement (the "Agreement") is made and entered into as of [Insert Date], by and between [Your Company Name], a [Your Company Type] organized and existing under the laws of [Your Company Jurisdiction], with its principal office located at [Your Company Address] (hereinafter referred to as the "Lessor"), and [Lessee Organization Name], a [Insert Lessee Organization Type] organized and existing under the laws of [Insert Lessee Jurisdiction], with its principal office located at [Insert Lessee Address] (hereinafter referred to as the "Lessee").
WHEREAS, the Lessor is the lawful owner of the operations facility located at [Insert Facility Address], comprising approximately [Insert Size of Facility] (the "Premises");
WHEREAS, the Lessee desires to rent the Premises from the Lessor for the purpose of manufacturing, storage, office space, and the Lessor agrees to rent the Premises to the Lessee on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
I. Term of Lease
A. Commencement and Duration: The lease term shall commence on [Insert Lease Start Date] and shall continue for a period of twelve (12) months, terminating on [Insert Lease End Date] unless earlier terminated in accordance with the provisions of this Agreement or extended by mutual agreement of the parties.
B. Renewal Option: The Lessee shall have the option to renew the lease for an additional term of twelve (12) months, provided that the Lessee gives the Lessor written notice of its intention to renew at least 90 days prior to the expiration of the initial lease term. The terms and conditions of the renewal lease shall be the same as those in this Agreement unless otherwise agreed upon by the parties.
II. Rental Payment
A. Monthly Rent: The Lessee agrees to pay the Lessor a monthly rent of five thousand U.S. dollars ($5,000) for the Premises. The first month's rent is due and payable upon the execution of this Agreement.
B. Payment Schedule: Subsequent rental payments are due on the first day of each month and considered late if not received by the 5th day of the month. A late fee of 5% of the monthly rent will be assessed for any payment received after this date.
C. Payment Method: Payments shall be made in USD by bank transfer to the account designated by the Lessor.
III. Security Deposit
A. Amount of Deposit: Upon execution of this Agreement, the Lessee shall pay the Lessor a security deposit of ten thousand U.S. dollars ($10,000) as security for the performance of the Lessee’s obligations under this Agreement.
B. Conditions for Return: The security deposit will be returned to the Lessee within sixty (60) days after the termination of this Agreement, provided that:
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The Premises are left in the same condition as at the commencement of the lease, reasonable wear and tear excepted;
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There are no outstanding rental payments or unpaid late fees;
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There are no costs incurred by the Lessor in repairing damages to the Premises caused by the Lessee or the Lessee’s agents, employees, or invitees.
C. Deductions: If there are any deductions from the security deposit, the Lessor will provide the Lessee with an itemized list of all deductions, including the cost of repairs for damage to the Premises, unpaid rent, and other charges as provided in this Agreement, within thirty (30) days of the lease termination.
IV. Use of Premises
A. Permitted Use: The Lessee shall use the Premises solely for manufacturing, storage, office space and shall not use or permit the Premises to be used for any other purpose without the prior written consent of the Lessor.
B. Compliance with Laws: The Lessee agrees to comply with all local, state, and federal laws and regulations applicable to the use of the Premises, including obtaining any necessary licenses or permits.
C. Restrictions on Use: The Lessee shall not engage in any activities or store any materials on the Premises that are hazardous, illegal, or could increase the insurance premiums for the Premises.
V. Maintenance and Repairs
A. Lessee’s Responsibilities: The Lessee shall maintain the Premises in a clean, safe, and sanitary condition, and shall promptly make any repairs necessary to keep the Premises in a condition comparable to that at the commencement of the lease, reasonable wear and tear excepted.
B. Lessor’s Responsibilities: The Lessor is responsible for maintaining the structural integrity of the Premises, including the roof, exterior walls, and foundation, as well as any mechanical, electrical, plumbing, and HVAC systems not caused by misuse or neglect by the Lessee.
C. Alterations and Improvements: The Lessee may not make any structural alterations or improvements to the Premises without the prior written consent of the Lessor. Any approved alterations or improvements shall become the property of the Lessor upon termination of the lease.
VI. Utilities and Services
A. Utilities: The Lessee is responsible for all utility charges related to the Premises, including but not limited to electricity, gas, water, sewer, and trash collection, unless otherwise agreed upon in writing.
B. Services: The Lessor shall provide landscaping and snow removal as part of the lease agreement. All other services required for the Lessee’s use of the Premises shall be the responsibility of the Lessee.
C. Interruptions: In the event of an interruption in utilities or services not caused by the Lessee’s actions, the Lessee shall notify the Lessor immediately. The Lessor shall make reasonable efforts to restore such utilities or services as promptly as possible, but shall not be liable for any losses suffered by the Lessee due to such interruptions.
VII. Insurance
A. Lessee’s Insurance Requirements: The Lessee shall obtain and maintain, at its own expense, the following insurance coverages throughout the term of this Agreement:
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Commercial General Liability Insurance with a minimum limit of one million U.S. dollars ($1,000,000) per occurrence for bodily injury and property damage.
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Property Insurance covering the Lessee’s personal property and fixtures against loss or damage.
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Any other insurance required by law or that is customary for the operation of the business conducted on the Premises.
B. Lessor’s Insurance: The Lessor shall maintain property insurance on the Premises itself, excluding coverage for the Lessee’s personal property.
C. Proof of Insurance: The Lessee shall provide the Lessor with certificates of insurance as proof of coverage and shall notify the Lessor within ten (10) days of any cancellation or significant change in coverage.
VIII. Indemnification
A. Lessee’s Indemnification: The Lessee agrees to indemnify, defend, and hold harmless the Lessor against any and all claims, liabilities, damages, losses, or expenses, including reasonable attorneys' fees, arising out of or in connection with the Lessee’s use of the Premises, except for those caused by the Lessor’s negligence or willful misconduct.
B. Lessor’s Indemnification: The Lessor agrees to indemnify, defend, and hold harmless the Lessee against any and all claims, liabilities, damages, losses, or expenses, including reasonable attorneys' fees, arising out of or in connection with the Lessor’s ownership of the Premises, except for those caused by the Lessee’s negligence or willful misconduct.
IX. Default and Remedies
A. Events of Default: The occurrence of any of the following shall constitute a default by the Lessee under this Agreement:
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Failure to pay rent or any other payment required hereunder within five (5) days after it becomes due.
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Violation of any provision of this Agreement not corrected within thirty (30) days after written notice thereof from the Lessor.
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Insolvency, bankruptcy, or assignment for the benefit of creditors of the Lessee.
B. Lessor’s Remedies: Upon default by the Lessee, the Lessor may exercise any one or more of the following remedies:
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Terminate this Agreement immediately and retake possession of the Premises.
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Pursue any other remedy available under the law or equity, including but not limited to the recovery of all unpaid rent and legal expenses.
C. Lessee’s Remedies: If the Lessor fails to perform any of its obligations under this Agreement, the Lessee may, after providing thirty (30) days written notice to the Lessor and an opportunity to cure such failure, exercise any remedy available under the law or equity.
X. Termination
A. Early Termination by Lessee: The Lessee may terminate this Agreement prior to the expiration of the term with ninety (90) days written notice to the Lessor and payment of an early termination fee equivalent to three (3) months’ rent.
B. Termination Due to Default: Either party may terminate this Agreement immediately upon written notice if the other party is in default, as defined in Section IX, and has not cured such default within the specified period.
C. Obligations upon Termination: Upon termination of this Agreement, the Lessee shall vacate the Premises and return it to the Lessor in the same condition as at the commencement of the lease, reasonable wear and tear excepted. All keys to the Premises shall be returned to the Lessor.
XI. Dispute Resolution
A. Negotiation: In the event of any dispute under this Agreement, the parties agree to first attempt to resolve the dispute through direct negotiation.
B. Mediation: If the dispute cannot be resolved through negotiation within thirty 30 days, the parties agree to attempt to settle the dispute through mediation, with the costs to be shared equally between them.
C. Arbitration: If mediation fails, the dispute shall be resolved by binding arbitration administered by [Insert Arbitration Body] in accordance with its rules. The arbitration shall take place in [Insert Location], and the decision of the arbitrator(s) shall be final and binding on the parties.
D. Litigation: Only if arbitration is not pursued by either party, may a dispute be resolved through litigation in the courts of [Insert Jurisdiction].
XII. Miscellaneous Provisions
A. Notices: All notices under this Agreement must be in writing and sent to the addresses specified in the preamble, or to new addresses as may be designated in writing by the parties.
B. Amendment: This Agreement may only be amended in writing, signed by both parties.
C. Waiver: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party waiving its rights.
D. Severability: If any part of this Agreement is found to be invalid or unenforceable, the remaining provisions will continue in full force and effect.
E. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior communications, agreements, or understandings, written or oral, regarding the subject matter hereof.
F. Binding Effect: This Agreement is binding on and shall inure to the benefit of the parties and their respective successors and assigns.
Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Operations Facility Rental Agreement as of the date first above written.
Lessor
[Name]
[Title]
[Month Day, Year]
Lessee
[Name]
[Title]
[Month Day, Year]
