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TRIPLE NET (NNN) LEASE AGREEMENT

This Triple-Net (NNN) Lease Agreement (“Agreement”) made this __________________,

by and between:

Landlord: with a mailing address of

(“Lessor”) AND

Tenant: with a mailing address of

(“Lessee”)

HEREINAFTER, the Lessor and Lessee (“Parties”) agree to enter into an Agreement for the

leasing of commercial real estate in accordance with the following terms:

1. PREMISES. The Lessee agrees to rent the property located at

(“Premises”) together with the right of

ingress and egress and the non-exclusive use of common areas, pursuant to the

following terms and conditions:

2. RENTABLE SPACE. The total rentable space of the Premises consists of _______

Square Feet (SF).

3. USE. The Lessee shall be allowed to use the Premises for the following:

________________________________________________________________

The aforementioned use(s) shall be referred to as the “Permitted Use(s)”. Any use by the

Lessee that does not correspond to the Permitted Use(s) shall be by prior written consent

of the Lessor only.

4. INITIAL TERM. This Agreement shall have an initial period of ____ months beginning

____________________, and ending on ____________________ ("Initial Term").

5. MONTHLY RENT. The rent amount for the initial period shall be: $________________

paid on the ____ day of every month and: (check one)

☐ - Shall remain the same during the Initial Term.

☐ - Shall increase during the Initial Term as follows:

From ____________________ to ____________________.

• Monthly Rent: $_______________

From ____________________ to ____________________.

• Monthly Rent: $_______________

From ____________________ to ____________________.

• Monthly Rent: $_______________

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6. SECURITY DEPOSIT. Under the terms of this Agreement: (check one)

☐ - The Lessee shall not be required to pay a Security Deposit.

☐ - The Lessee shall be required to pay: $_______________ as a non-interest bearing

security deposit to secure the performance by Lessee of the provisions and conditions of

this Agreement ("Security Deposit"). The Lessee shall pay the Security Deposit to the

Lessor at the execution of this Agreement. In the event Lessee fails to pay the Rent or

otherwise defaults on any provision herein, Lessor may apply the whole or any part of

the Security Deposit to the payment of any sum in default or any of Lessee's damages as

a result of default. If any portion of the Security Deposit is applied, Lessee, upon demand

by Lessor, shall deposit an amount sufficient to return the Security Deposit to its original

amount. Should Lessee comply with all of the covenants and conditions of this

Agreement, the Security Deposit or any balance thereof shall be returned to within ____

days of the expiration of the Term.

7. LATE FEE. If any payment or charges due by the Lessee to the Lessor are not made

within ____ calendar days, the Lessor shall: (check one)

☐ - Not charge a late fee.

☐ - Charge a late fee in the amount of: (check one)

☐ - $_______________ for each ☐ day ☐ occurrence Rent is late.

☐ - ____% of balance shall accumulate for each ☐ day ☐ occurrence Rent is

late.

8. RENEWAL OPTIONS. The Lessee shall: (check one)

☐ - Not have the option to renew this Agreement.

☐ - Have the option to renew this Agreement by providing at least ____ days’ notice

before any ending termination date. The Lessee shall have ____ renewal period(s) as

follows:

Renewal Period: From ____________________ to ____________________.

• Monthly Rent: $_______________

Renewal Period: From ____________________ to ____________________.

• Monthly Rent: $_______________

Renewal Period: From ____________________ to ____________________.

• Monthly Rent: $_______________

The Initial Term and any renewal periods shall be referred to as the "Term".

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9. UPFRONT PAYMENT. Upon the execution of this Agreement, Lessee shall pay to

Lessor the following: (check one)

☐ - First Month’s Rent of $________________

☐ - Last Month’s Rent of $________________

☐ - Security Deposit of $________________

10. POSSESSION. Possession shall commence on ______________________ unless

otherwise agreed upon. Lessor shall use due diligence to give possession as nearly as

possible at the beginning of the Term. Rent shall be prorated taking into account any

delay in providing possession, but the Term shall not be extended as a result of such

delay. Lessee shall make no other claim against Lessor for the delay in obtaining

possession of the Premises.

11. LESSOR INDEMNITY AND LIABILITY INSURANCE. Lessor shall indemnify, defend

and hold Lessee harmless from all loss, liability, costs, damages, and expenses that may

occur or be claimed with respect to any person or persons, or property on or to the

common areas, resulting from any act done or omission by or through Lessor, its agents,

employees, invitees, or any person. Lessor shall maintain, at all times during the Term,

comprehensive general liability insurance with an insurance company licensed to do

business in the state in which the common areas are located and satisfactory to Lessee,

properly protecting and indemnifying Lessee with single limit coverage of not less than

$________________ for injury to or $________________ for death of persons and

$________________ for property damage.

12. PROPORTIONATE SHARE. If the Premises are a part of a multiple tenancy complex,

the responsibility of Lessee for costs are determined by taking a percentage of the total

cost of the expenses based upon the rentable floor space in said complex occupied by

Lessee. It is agreed the Premises is _______% ("Proportionate Share") of the total floor

space in the building.

a. Lessor may, with notice to Lessee, elect to perform and provide certain

maintenance and services pertaining to the entire building or area of which the

Premises are a part, including, but not limited to, landscaping, trash removal,

lawn maintenance, common area lighting, watering, paving maintenance, and

snow removal. In such event, Lessee shall reimburse Lessor for its Proportionate

Share of such maintenance services.

b. Within ninety (90) days following the end of each year during the Term, Lessor

shall furnish Lessee a written statement covering the lease year just expired

(measured from the Commencement Date), showing in reasonable detail a

general breakdown of the total operating costs, the amount of Lessee's obligation

relating thereto, and the total payments made by Lessee.

Lessee agrees to conduct its business in a lawful and legal manner and in a way that

provides quiet enjoyment to the rest of the Lessees in the complex, including, but not

limited to, mitigation and limitation of noise, vibration, odor, trash, or fumes. In the event

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Lessor receives complaints from other Lessees in the building or complex and

determines, in its sole reasonable judgment, that Lessee is conducting its operations in a

manner so as to be objectionable to other Lessees, Lessee shall, upon notice from

Lessor, promptly modify its operations to eliminate such objections.

13. LESSOR'S RIGHT OF ENTRY. Lessor or Lessor's agent may enter at reasonable hours

to inspect or show the Premises to prospective lenders and purchasers, and to do

anything Lessor may be required to do hereunder or which Lessor may deem necessary

for the good of the Premises or any building of which they are apart. During the last ____

days of the Term, Lessor may display a "For Rent" sign on the Premises and show the

Premises to prospective lessees.

14. DAMAGE BY CASUALTY. If during the Term or previous thereto, the Premises shall be

destroyed or so damaged by fire or another casualty as to become un-leasable, then, at

the option of Lessor, this Agreement shall terminate from the date of such damage or

destruction. Lessor shall exercise this option to so terminate this Agreement by notice in

writing delivered to Lessee within ____ days after such casualty. Upon such notice,

Lessee shall immediately surrender said Premises and all interest therein to Lessor, and

Lessee shall pay Rent up until the date of casualty. If Lessor does not elect to terminate

this Agreement, this Agreement shall continue in full force and effect, and Lessor shall

expeditiously repair the Premises, placing the same in as good a condition as they were

at the time of the damage or destruction. Rent shall be prorated taking into account the

amount of time Lessee is unable to occupy the Premises. If the Premises are slightly

damaged by fire or another casualty but still leasable, then Lessor shall expeditiously

repair the same with no rent proration. Lessee may not make a claim for compensation

because of any inconvenience or loss of business arising from the necessity of repairing

any portion of the building or the Premises.

15. NOTICES. Any notice hereunder shall be sufficient if sent by certified mail and

addressed to:

Lessor: __________________________________________________________

Lessee: _________________________________________________________

16. OPERATING EXPENSES. Unless otherwise modified under this Agreement, Lessor and

Lessee agree that this Agreement shall be considered a triple net lease. Lessee agrees

to pay directly or reimburse Lessor for one hundred percent (100%) of all costs of

operating and maintaining the building and related parking areas which shall include,

without limitation, real estate and personal property taxes and assessments,

management fees, heating, electricity, water, waste disposal, sewage, operating

materials and supplies, service agreements and charges, lawn care, snow removal,

restriping, repairs, repaving, cleaning and custodial, security, insurance, the cost of

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

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

building and related parking areas, unless expressly excluded from operating expenses

("Operating Expenses"). Notwithstanding the foregoing, Operating Expenses shall not

include any amount related to (i) a capital account or capital improvement; (ii) ground

leases; (iii) principal or interest payments on any mortgage or deed of trust on the

Premises; (iv) any amount for which Lessor is reimbursed through insurance, by third

persons, or directly by other Lessees of the Premises; (iv) repair costs as a result of fire,

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windstorm, or other casualty, (v) leasing commissions and other expenses incurred in

connection with leasing any other area located on the premises to any other party; and

(vi) costs of items and services for which Lessee reimburses Lessor or pays third

persons directly.

17. TAXES. During the Term, Lessee shall be obligated to pay the real estate taxes and any

other taxes including leasehold taxes and/or assessments (collectively, the "Taxes")

attributable to the Premises and accruing during the Term. Lessee, at Lessor's option,

shall pay to Lessor said Taxes every month, based on one-twelfth (1/12) of the

estimated annual amount for taxes. Taxes for any fractional calendar year during the

Term shall be prorated. In the event Lessee does not make any tax payment required

hereunder, Lessee shall be in default of this Agreement.

18. PROPERTY INSURANCE. Except in case of multiple tenancy complex as provided in

Section 12, Lessee shall, throughout the term of this Agreement and any extensions

thereof, pay for fire and extended coverage casualty insurance for the building and other

improvements on the Premises, with such comprehensive endorsements and in such

amounts as Lessor may deem reasonably necessary, and shall show the Lessee and

the Lessor, and Lessor's lender, if any, as the insured thereon. Lessee shall also obtain

and pay for loss of rent coverage. Lessee shall ensure the insurance remains in force

throughout the Term and provide Lessor with copies of any policies or certificates

evidencing such coverage. The policies shall be in form and content reasonably required

by Lessor and shall be issued by an insurance company reasonably approved by Lessor

and shall contain a clause that the insurer will not cancel, materially modify, or fail to

renew the insurance without first giving Lessor thirty (30) days prior written notice. If

Lessee fails to keep the insurance in effect, Lessee shall be in default hereunder and

Lessor may, at its option, immediately obtain insurance coverage as provided for herein

and charge Lessee for the cost thereof.

19. ASSIGNMENT AND SUBLETTING. Lessee shall not assign, transfer, or encumber this

Agreement in any way and shall not sublease the Premises or any part thereof or allow

any other person to be in possession thereof without the prior written consent of Lessor,

in each instance. For the purpose of this provision, any transfer of a majority or

controlling interest in Lessee (whether in one or more related or unrelated transactions),

whether by transfer of stock, consolidation, merger, transfer of a partnership interest or

transfer of any or all of Lessee's assets or otherwise, or by operation of law, shall be

deemed an assignment of this Agreement. Notwithstanding any permitted assignment or

subletting, Lessee shall at all times remain directly, primarily, and wholly responsible and

liable for the payment of the Rent herein specified and for compliance with all of its other

obligations under the terms and provisions of this Agreement.

20. SIGNAGE AND ALTERATIONS. Lessee shall not place any signs, billboards, or

advertisements upon the Premises without the prior written consent of Lessor. Lessee is

responsible for the costs of any permitted signage. Lessee shall not make any material

or structural alterations or additions in or to the Premises without the prior written

consent of Lessor.

21. TOXIC OR HAZARDOUS MATERIALS. Lessee shall not store, use, or dispose of any

toxic or hazardous materials in, on, or about the Premises without the prior written

consent of Lessor. Lessee shall be solely responsible for and shall defend, indemnify

and hold Lessor, and its agents and employees, harmless from and against all claims,

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costs, and liabilities, including attorney's fees and expenses, arising out of or in

connection with the Lessee storage, use, or disposal of any toxic or hazardous material

in, on, or about the Premises. Lessee's obligations under this paragraph shall survive the

termination of this Agreement.

22. CONDITION OF PREMISES. Lessee acknowledges that it has inspected the Premises

and Lessee accepts the Premises in its current condition. At the end of the Term,

Lessee, at its expense, shall (i) surrender the Premises in the same condition as existed

at the time the commencement of the Term, reasonable wear and tear excepted; (ii)

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

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

Premises free of trash and debris and the building in "broom clean" condition.

23. PERSONAL PROPERTY. Lessor shall not be liable for any loss or damage to any

inventory, goods, fixtures, improvements, or personal property of Lessee on or about the

Premises.

24. APPLICATION OF LAW. Lessee shall comply with all laws, ordinances, regulations and

other legal requirements affecting the Premises and the use thereof, and Lessee shall

indemnify, defend and hold Lessor harmless from expense or damage resulting from

failure to do so.

25. FIXTURES. Except for Lessee's personal property and trade fixtures, all buildings,

repairs, alterations, additions, improvements, installations, and other non-trade fixtures

installed or erected on the Premises, whether by or at the expense of Lessor or Lessee,

shall belong to Lessor and shall remain on and be surrendered with the Premises at the

expiration or termination of this Agreement. However, at Lessor's option, Lessee shall

remove Lessee's alterations or improvements prior to the expiration of this Agreement

and return the Premises to its original condition.

26. EMINENT DOMAIN. Should all or a part of the Premises be taken under eminent

domain so that the Premises are unsuitable, in Lessee's reasonable opinion, for

Lessee's use, then the term of this Agreement shall terminate as of the date that title

shall vest in the acquiring authority and the Rent and other charges shall be adjusted as

of the date of such taking. The Lessor shall be entitled to the proceeds of the eminent

domain award made to Lessor. Nothing herein shall be construed to prevent Lessee

from separately pursuing a claim against the requisite authority for Lessee's independent

loss or damages to the extent available, provided, however, that no award to Lessee

shall reduce the award to Lessor. Lessee shall have no claim against Lessor for the

value of the unexpired term of this Agreement.

27. WAIVER OF SUBROGATION. The parties will each look to their own insurance for

recovery of any loss resulting from fire or another casualty. Lessor and Lessee release

one another from such claims and waive any right of recovery of insured claims by

anyone claiming through them, by way of subrogation or otherwise, including their

respective insurers. This release and waiver shall remain effective despite either party’s

failure to obtain insurance. If either party fails to obtain insurance, it bears the full risk of

its own loss.

28. DEFAULT AND REMEDIES. If: (a) Lessee fails to comply with any term, provision,

condition, or covenant of this Agreement; (b) Lessee deserts or vacates the Premises;

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Bankruptcy Act, as amended, or under any similar law or statute of the United States or

any state thereof; (d) Lessee becomes insolvent or makes a transfer in fraud of

creditors; (e) Lessee makes an assignment for the benefit of creditors; or (f) a receiver is

appointed for Lessee or any of the assets of Lessee, then in any of such events, Lessee

shall be in default and Lessor shall have the option to do any one or more of the

following: (i) enter the Premises either with or without process of law and to expel,

remove and put out Lessee or any other persons thereon, together with all personal

property; (ii) terminate this Agreement; (iii) Rent said Premises or any part thereof for

such term or terms and at such terms and conditions as Lessor in its sole discretion may

deem advisable, with the right to repair, renovate, remodel, redecorate, alter, and

change said Premises. At the option of Lessor, rents received by Lessor from such

reletting shall be applied in order as follows: to the payment of any indebtedness from

Lessee to Lessor other than Rent due; to the payment of any costs and expenses of

such reletting, including, but not limited to, attorney's fees, advertising fees, and

brokerage fees, and to the payment of any repairs, renovation, remodeling,

redecorations, alterations, and changes in the Premises; to the payment of Rent and

additional Rent due and payable hereunder and interest thereon; and, if after applying

said rentals there is any deficiency in the Rent and additional rent and interest to be paid

by Lessee under this Agreement, Lessee shall pay any such deficiency to Lessor and

such deficiency shall be calculated and collected by Lessor monthly. No such re-entry or

taking possession of said Premises shall be construed as an election on Lessor's part to

terminate this Agreement unless a written notice of such intention is given to Lessee.

Notwithstanding any such reletting without termination, Lessor may at any time terminate

this Agreement by reason of any default, in addition to any other remedy it may have.

29. WAIVER. The rights and remedies of Lessor under this Agreement, as well as those

provided by law, shall be cumulative, and none shall be exclusive of any other rights or

remedies. A waiver by Lessor of any breach or default of Lessee shall not be deemed or

construed to be a continuing waiver of such breach or default nor as a waiver of or

permission, expressed or implied, for any subsequent breach or default. It is agreed that

the acceptance by Lessor of any installment of Rent subsequent to the date the same

should have been paid shall not alter the covenant and obligation of Lessee to pay

subsequent installments of Rent promptly upon the due date. Receipt by Lessor of

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

any such default. No receipt of money by Lessor before or after the termination of this

Agreement shall in any way reinstate, continue, or extend the term above demised.

30. SUBORDINATION. This Agreement shall be subject and subordinate at all times to any

existing mortgages and any mortgages hereinafter obtained on the Premises.

31. SUCCESSORS. The provisions, covenants, and conditions of this Agreement shall bind

and inure to the benefit of the legal representatives, heirs, successors, and assigns of

each of the parties hereto, except that no assignment or subletting by Lessee without the

written consent of Lessor shall vest any rights in the assignee or sublessee of Lessee.

32. QUIET POSSESSION. Lessor agrees, so long as Lessee fully complies with all of the

terms, covenants, and conditions of this Agreement, that Lessee shall and may

peaceably and quietly have, hold, and enjoy the Premises for the Term. Such right to

quiet enjoyment shall be binding upon Lessor, its heirs, successors, or assigns, but only

during such party's ownership of the Premises.

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33. AUTHORITY. Lessor and Lessee further covenant and represent that each has full right,

title, power, and authority to make, execute, and deliver this Agreement.

34. BANKRUPTCY. Neither this Agreement nor any interest therein nor any estate hereby

created shall pass to any trustee or receiver in bankruptcy or to any other receiver or

assignee for the benefit of creditors by operation of law or otherwise during the Term or

any renewal thereof.

35. ENTIRE AGREEMENT. This Agreement contains the entire agreement between the

parties, and no modification of this Agreement shall be binding upon the parties unless

evidenced by an agreement in writing signed by Lessor and Lessee after the date hereof.

If more than one Lessee is named herein, the provisions of this Agreement shall be

applicable to and binding upon such Lessees, jointly and severally.

36. ESTOPPEL CERTIFICATES. Lessee shall at any time upon written notice by Lessor,

with notice providing Lessee no less than ten (10) days, execute, acknowledge, and

deliver to Lessor or to any lender of or purchaser from Lessor a statement in writing

certifying that this Agreement is unmodified and in full force and effect (or if modified,

stating the nature of such modification) and the date to which the Rent and other charges

are paid in advance, if any, and acknowledging that there are not, to Lessee's

knowledge, any uncured defaults on the part of Lessor, or specifying such defaults if any

are claimed. Any such statement may be conclusively relied upon by any prospective

purchaser or encumbrances of the Premises or of the business of Lessor.

37. ADDITIONAL TERMS AND CONDITIONS.

38. ATTACHMENTS. The following Attachments are incorporated herein: (check all that

apply)

☐ - Attachment A: _________________________________________________

☐ - Attachment B: _________________________________________________

☐ - Attachment C: _________________________________________________

IN WITNESS WHEREOF, the parties have indicated their acceptance of the terms of this

Agreement by their signatures below on the dates indicated.

Lessor’s Signature: Date:

Print Name:

Lessee’s Signature: Date:

Print Name:

Agent’s Signature: Date:

Print Name:

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NOTARY ACKNOWLEDGMENT

STATE OF __________________

__________________ County, ss.

On this __________________, before me appeared ________________________, as

Lessee and ________________________, as Lessor of this Agreement who proved to me

through government issued photo identification to be the above-named persons, in my

presence executed foregoing instrument and acknowledged that (s)he executed the same as

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