Date RE: Lease Proposal for ______ Corner of ______

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Date RE: Lease Proposal for ______ Corner of ______

DateRE:Lease Proposal for ______________________________________________________ Corner of ___________________and ________________________Tucson, ArizonaDear _________:Thank you for the proposal dated _______________ and referenced above. I have reviewed this proposalwith the owner of______________________. It is my pleasure to have this opportunity to present youthe following proposal to lease space in ______________________ from _____________________. Theterms and conditions under which _______________ would enter into said lease agreement are asfollows:LANDLORD:TENANT:LEASE GUARANTEE:TENANT’S TRADE NAME:PREMISES:LEASE TERM:OPTION TO RENEW:___________________________________________________________________________________Tenant’s performance of the terms and conditions of theproposed lease shall be personally guaranteedby_________________________________________________________________________________________________Approximately _____ sq.ft. located at ____________ in______________________________ at the _______ corner of___________________________________ , Arizona (as shownoutlined in red on the attached Exhibit “A”).The Lease Term shall be ______ (__) years.So long as Tenant is not in default of the Lease and is operatingfrom the Premises, and has not assigned the Lease or sublet thePremises to an unrelated entity, it shall have the Option toRenew the Lease for ____ (___) additional term(s) of _____


NameDatePage 2 of 5(___) years by giving written notice _____ days prior to theexpiration of the Lease. The Option Period shall be upon thesame terms and conditions except there shall be no RentAbatement Period, no Tenant Improvement Allowance and theBase Rent shall increase _____________ percent (____%)annually.BASE RENT:The Base Rent shall be $______ per sq. ft. per year and shallincrease _____ percent (___%) annually.Year One:Year Two:Year Three:Year Four:Year Five:$__________/sf/yr,$__________/sf/yr,$__________/sf/yr,$__________/sf/yr,$__________/sf/yr.PERCENTAGE RENT:Tenant shall pay __________ percent (____%) of Tenant’s grosssales taken vs. Base Rent (natural break point).Percentage Rent shall be waived. Tenant shall report gross sales.OPERATING EXPENSES:RENT TAX:TENANT’S INSURANCE:LEASE AND RENTCOMMENCEMENT DATE:Tenant shall pay its pro rata share of the Operating Expenses(Triple Net Charges) of the Shopping Center, which includes realestate taxes, insurance and common area maintenance. TheOperating Expenses are estimated to be $_____ per square footper annum. Common Area Maintenance shall include, but not belimited to, roof repairs or replacement, parking lot resealing orresurfacing, exterior painting and the customary fee foradministration and supervision of the Operating Expenses.Tenant shall pay all Rental Tax assessed against the Premises,currently assessed at ____% of Base Rent and Triple NetCharges.Commencing on the Lease Commencement Date, Tenant, at itsexpense, shall provide and maintain insurance (liability andproperty casualty) naming the Landlord and its property manageras additional insureds in the amount of $3,000,000.The Lease Term and Tenant’s obligation to pay Base Rent andTriple Net Charges shall commence upon Landlord’s delivery ofthe Premises with Landlord’s Work substantially completed,which delivery is estimated to be_________________________.R:\LEASE PROPOSAL FORM.doc


NameDatePage 3 of 5RENTAL ABATEMENTPERIOD:USE OF PREMISES:RIGHT OF EXCLUSIVE USE:LANDLORD’S WORK:So long as Tenant is not in default of the Lease, Tenant shall notbe required to pay Base Rent during months ____________through _________________ of the primary Lease term. Allother charges due under the Lease such as Triple Net Chargesand Rental Tax shall be due as of the Lease CommencementDate.The Premises shall be continuously used, throughout the term ofthe Lease, solely for the purposes ofand for no other purpose.So long as Tenant is not in default of the Lease, Landlord shallnot enter into a lease with any other business whose expressedprimary purpose (use) is______________________________________________. Existing tenants, anchortenants and parcels not owned by Landlord are excluded.Landlord shall deliver the Premises with the following worksubstantially completed prior to the Lease Commencement Date(“Landlord’s Work”):1) walls drywalled, taped, textured but not painted,2) smooth concrete floor,3) 2'x4' grid, lay-in acoustical tile ceiling with fluorescentlighting throughout,4) electrical service and outlets per code,5) one finished handicap accessible bathroom,6) Heating, Ventilation and Air Conditioning (HVAC) withdistribution duct work and vents.CONDITION OF THEPREMISES:TENANT IMPROVEMENTALLOWANCE:Landlord shall deliver and Tenant shall accept the Premises in an“as-is” condition, except that the HVAC shall be in goodworking condition on or about the Lease Commencement Date.Landlord’s sole obligation with respect to the construction of theTenant Improvements shall be to provide Tenant with anallowance of $______ per sq. ft. leased to be paid upon thefollowing occurrences i) Tenant’s opening for business in thePremises, ii) Tenant’s submittal to Landlord of a Certificate ofOccupancy, and iii) Tenant’s submittal to Landlord of completelien waivers. All additional improvements to the Premises shallbe at Tenant’s sole cost and expense. All construction workshall be designed by a licensed architect and shall be performedR:\LEASE PROPOSAL FORM.doc


NameDatePage 4 of 5by a licensed general contractor. All plans and all constructionwork shall be pre-approved by Landlord.MAINTENANCE ANDREPAIRS:Landlord, at its sole cost and expense, shall maintain and repairthe load bearing structural walls, roof structural, foundation, andplumbing and electrical servicing up to the Premises.Tenant, at it sole cost and expense, shall maintain and repair allinterior items including but not limited to walls, plumbing,electrical, doors, windows and HVAC.SECURITY DEPOSIT ANDPREPAID RENT:SIGNAGE:REAL ESTATE BROKERAGE:LEASE FORM:FINANCIAL INFORMATION:APPROVALS:Upon full execution of the Lease, Tenant shall pay a securitydeposit equivalent to one month’s Base Rent, Triple Net Chargesand Rental Tax and prepay the first months Base Rent, TripleNet Charges and Rental Tax.Within thirty (30) days of Tenant’s opening for business in thePremises, Tenant shall have installed an exterior building sign inaccordance with the shopping center’s standard sign criteria, cityapproval and Landlord's final approval.____________________ has acted solely as Tenant’s real estatebroker and _______________________has acted solely asLandlord’s real estate broker in the proposed lease transaction.Tenant and Landlord acknowledge that they have had nodealings with any other broker other than the above stated inconnection with the proposed lease transaction. Landlord shallpay a real estate commission to _____________________uponfull execution of a lease and waiver of any contingency inconnection with the proposed lease transaction._______________________ shall cooperate with_______________________ on said commission on a 50/50basis.Landlord’s form.The lease contemplated herein shall be subject to Landlord’sreview and approval of the credit-worthiness of the Tenant.Tenant hereby agrees to provide financial information forLandlord’s approval, upon execution of this proposal.Tenant shall obtain any and all approvals necessary prior toexecuting the Lease.R:\LEASE PROPOSAL FORM.doc


NameDatePage 5 of 5NON-BINDING PROPOSAL:This proposal shall not be binding on either of the parties heretoand may be withdrawn at any time. There shall be no agreementunless and until there is a fully executed lease agreement.____________, please review this proposal ___________________________ and call me should youhave any questions or comments. Otherwise, if it meets with __________ approval, please have___________________________ sign it and return it to me via facsimile, and _______ prepare a leasefor everyone’s review.I very much look forward to finalizing this lease agreement and having____________________________________________________ .Sincerely,R. Craig Finfrock, CCIM, CLSManaging Member, Designated BrokerAPPROVED AND ACCEPTED:LANDLORD:TENANT:By:Its:Date:By:Its:Date:R:\LEASE PROPOSAL FORM.doc

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