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Lubrication center. This lease agreement entered into on _________[year], between _________, a Partnership, referred to below as "Lessor," and SLC., referred to as "Lessee." In consideration of the rent provided for, and of the covenants and agreements contained in this Lease, Lessor demises and leases to Lessee a portion of the premises located at _________(street address). To have and to hold the premises for a term of 15 years, beginning on the 1st day of _________[year]. The terms and conditions of this Lease are as follows: 1. Rental. Lessee agrees to pay Lessor as rental for the premises the sum of $_____, to be paid in monthly payments of $_____. Lessee shall also pay all sales, excise and similar taxes levied against Lessor or Lessee with respect to this Lease or rentals payable under it, and any such tax applicable to a rental payment shall be payable at the time and in the same manner as the rental payment becomes due and payable. 2. Use of Premises. Lessee shall use the premises for operation of a _________ Lube Center and must comply with all laws, applicable zoning ordinances and restrictions. 3. Indemnity. Lessee agrees to indemnify and hold Lessor harmless from the claims of any and all persons for bodily injury and property damage occurring upon the premises during the term of this Lease or any extension of it, provided the Lessor is not negligent. Lessee agrees to obtain and furnish at Lessee's expense a public liability insurance policy with a reputable insurance company, protecting Lessor from any and all such damages and claims, and agrees to have the policy endorsed to include Lessor as the additional insured. The policy or policies shall be with the following limits: $_____ for personal injury to one individual in any one accident or occurrence; $_____ for personal injuries for all individuals, the result of any one accident or occurrence; $_____ property damage to all persons resulting from one accident or occurrence. Lessee will give to Lessor a copy of the liability insurance policy with the premium paid. 4. Utilities. A. Tenant shall promptly pay all charges when due for utilities furnished to the premises including water, gas, electricity and any other utilities services, and tenant shall promptly pay all taxes levied in connection with utilities used on the premises. Landlord shall not be responsible or liable in any way for quality impairment, interruption, stoppage or other interference with any "utility service." B. It is the intention of Lessor and the Lessee that the rent shall be net to the Lessor, in each year during the term of the Lease, and that all costs, expenses, and obligations of every kind relating to the premises (except as otherwise specifically provided in this lease) which may rise or become due during the term of the Lease shall be paid by Lessee and Lessor shall be indemnified by Lessee against such costs, expenses and obligations, including attorney's fees and expenses incurred from enforcing the covenants of the Lease. 5. Common Area and Facilities. Tenant shall pay to landlord, as additional rent, its proportionate shares of costs and expenses incurred in maintaining and operating the auto center. The costs and expenses include without limitations: net costs and expenses of operating, repairs, lighting, cleaning, painting, stripping and securing insurance. 6. Real Estate Taxes. Lessee agrees, during the term of this lease or any renewal period of it to pay prorata share of all real estate taxes, special assessments or insurance levied or assessed on the property. 7. Repair. The Lessee will keep the leased grounds free of all cans, bottles, fragments, debris and trash, and in good repair, and the Lessee will keep the downspouts, gutters and drains clean, open and free of obstruction, and in good working order. Lessor shall not be obligated or required to make any repairs or do any work on or about the premises or any part of them. All portions of any building leased shall be kept in good repair by Lessee and at the end of the term, the Lessee shall deliver the demised premises to Lessor in good repair and condition, reasonable wear and tear and damage from fire or other casualty excepted. Lessor reserves the right to enter upon the premises as Lessor may deem necessary or proper, or that Lessor may be lawfully required to make by giving a 24-hour notice of the inspection. Lessor reserves the right to show the premises to prospective tenants and purchasers, and the right to display "For Sale" and "For Rent" signs on the premises 90 days prior to termination of this lease. Lessor shall not be liable for any injury or damage caused by, or growing out of, any defect of the building, or its equipment, drains, plumbing, wiring, electric equipment or appurtenances, or in the premises, or caused by, or growing out of fire, rain, wind, leaks, seepage or other cause. However, this does not relieve lessor of liability if the building is defective because of lessor's actions. Should the Lessee fail to make repairs agreed to under this Lease, the Lessor may enter the premises and make such repairs and collect the cost from the Lessee. Except as specifically provided in this Lease, the Lessee will not make or permit to be made any alterations, improvements, additions or changes in the premises, nor will the Lessee paint the outside of the building or permit the same to be painted without the written consent of the Lessor before work is contracted or let. No signs or any character shall be erected on the roof until the consent in writing is first had and obtained from the Lessor. The consent to a particular alteration, improvement, addition or change shall not be deemed a consent to, nor a waiver of, a restriction against alterations, improvements, additions or changes for the future. 8. Fire and Other Casualty. In the event of the total destruction of, or partial damage to, the buildings upon the demised premises by fire or other casualty, Lessor shall proceed with due diligence and dispatch to repair and restore the buildings to the conditions to which they existed immediately prior to the occurrence of such casualty, at Lessor's cost and expense, provided such cost does not exceed the proceeds of insurance collected on the buildings, by reason of such casualty, the application of which insurance proceeds are not prohibited, by reason of any mortgage provision, from being used toward the cost of restoration and repairing the same. If the unexpired portion of the term or any extension of it shall be two years or less on the date of such casualty and the cost of such repair or restoration exceeds 20% of the then replacement value of the damaged leased premises, as estimated by two or more reputable contractors, Lessor may by written notice to the Lessee, within 30 days after the occurrence of such casualty, terminate this Lease. If Lessor exercises the above right to terminate this Lease and Lessee elects to exercise an option of renewal privilege which Lessee may have under this Lease, which if exercised would extend the unexpired term beyond two (2) years, Lessee may void such notice above of Lessor's right to terminate this Lease by exercising such option renewal privilege within such 30-day period. If the insurance proceeds are insufficient to effect such restoration or repairs, Lessor at its option may cancel this Lease by written notice to Lessee within 30 days after the occurrence of such casualty. In the event the repairing and restoring of the buildings cannot be completed within four months after the date of occurrence of such casualty, as estimated by two or more reputable contractors, the Lessee shall have the right to terminate this Lease upon giving written notice to Lessor within 30 days from the date of occurrence of the casualty. From the date of such damage or destruction until the building has been substantially repaired or restored, an equitable abatement of rent shall be allowed the Lessee. Any property stored in the demised premises shall be at the sole risk of Lessee. Neither Lessor nor Lessee shall be liable to the other for any loss or damage from risks ordinarily insured against under fire insurance policies with extended coverage endorsements, irrespective of whether such loss or damage results from their negligence or that of any of their agents, servants, employees, licensees or contractors to the extent that such losses are covered by valid and collectable insurance on the property at the time of the loss. 9. Improvements and Fixtures. Lessee may at its own expense make such alterations, improvements, additions and changes to the premises, provided Lessee shall not, without the written consent of Lessor, tear down or materially demolish any of the improvements on the premises or make any material change or alteration in such improvements which, when completed, would substantially diminish the value of the premises. All shelving, trade fixtures, or other personal property of Lessee which it may have installed or placed at its own expense on the premises may at any time be removed by Lessee provided Lessee shall repair any damage to the premises caused by such removal. Lessee agrees at Lessee's own cost and expense to keep the building on the premises well painted at all times. 10. Assignment and Subletting. Lessee agrees that it will not assign or sublet the leased premises in whole or in part without the written consent of Lessor, which consent shall not be unreasonably withheld. But such assignment or subletting will in no event release Lessee from its responsibility under the terms of this Lease. See special stipulation number _________. 11. Lien. Lessor shall have a lien upon all Lessee's inventory, parts, equipment, fixtures and accounts receivable to secure payment of rental. Failure to consider the Lease forfeited for one failure or breach on the part of Lessee shall not be a waiver of Lessor's right to elect to reenter and forfeit, or rerent the premises for any subsequent breach, the right being a continuing one, excluding any trade or registration (R) trade name items that are the sole ownership of franchisor. The Lessor shall have the right to annul and terminate this Lease should the levy of an execution or other legal process be brought upon the goods, furniture, effects or other property of the Lessee, or the filing of a petition in bankruptcy, a petition for an arraignment or reorganization by or against the Lessee, or the appointment of a receiver or trustee, or other court officer, for the assets of the Lessee, or the execution of an assignment for the benefit of creditors of the Lessee, or the vacating or abandonment by the Lessee of the leased premises, or the use of them for any purpose other than the purpose for which they are let. 12. Return of Premises Upon Termination. Upon termination of this Lease by expiration of the term, or by election as above provided, or otherwise, Lessee waives demand for the rent, and notice to vacate the premises to Lessor, and to return the premises to Lessor in the same condition as at the commencement of this Lease, ordinary wear excepted, subject to the provisions of Section 7 of this Lease. 13. Non-Waiver Eminent Domain and Condemnation. If there is a partial taking of the demised premises by eminent domain, as the result of which the total leased premises is reduced by not more than 25%, the terms of this Lease will continue and Lessor at Lessor's expense will restore the remaining premises to a complete architectural unit with store front, signs and interior of equal appearance and utility as they had previous to the taking, but there will be a prorata reduction in the rent payable each month and Lessee will have no right to any of the proceeds of such taking. If, on the other hand, the taking exceeds 25% of the total leased premises, or in the event the improvements are condemned and ordered torn down or removed by lawful authority, then the terms of this Lease shall cease as of the date possession shall be taken by such authority, the rent will be apportioned as of the date of such taking. 14. Notice. All notices which are required to be given pursuant to this Lease shall be deemed sufficient if sent by either registered or certified mail as follows: To Lessor: (Address) To Lessee: (Address) 15. Binding Effects. This Lease shall be binding and shall inure to the benefit of Lessor and Lessee, their heirs, successors and assigns. 16. Commencement of Lease. Commencement is to be 15 days after the issuance of the Certificate of Occupancy, or any equivalent certificate. 17. Security Deposit. Lessee has deposited with Lessor the sum of $_____ to be held as security for the full and faithful performance by Lessee of all the terms and conditions in this Lease, it being understood and agreed that this deposit will be applied against the last month's rent, 50% due on execution of lease by both parties and 50% due 30 days prior to occupancy. An additional security deposit will be required based on the adjusted rent determined by the addition of the costs incurred for Peck's specifications. 18. In witness, the parties have executed this Lease on this _________[year].
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