Sample Sub-Lease Agreement

For illustration purposes only.   May or may not be suited for your particular needs.  No explicit or implicit guarantees are made.   Consult an attorney to draft your lease agreement.

             OFFICE SUB-LEASE AGREEMENT

 

            This lease agreement (Lease), is by and between Arnold Hernandez (Landlord) and_________________________________________________________(Tenant).

 

 

            1. LANDLORD is the lessor of an office suited described as __________________________________________________________  consisting of five offices and a reception area. 

            2. LEASEHOLD INTEREST.  The leasehold interest is one office space (Office) described as suite 25-E, which has been inspected and ascertained through a visual physical inspection and is to the satisfaction of tenant, consisting of approximately 1100 square feet, tenant is granted a 30 day option to exchange the leasehold interest for suite 25-B which consists of approximately 1200 square feet.  TENANT accepts the premises in their existing condition, as is, and agree to return said premises in the same or better condition at the end of the lease agreement.  TENANT agrees not make any alterations to the premises without LANDLORD’s written consent.

            4. TERM.  LANDLORD hereby grants a leasehold interest to TENANT and TENANT accepts the leasehold interest from LANDLORD of the property. In consideration TENANT agrees to make payment to LANDLORD as described herein and both parties agree to adhere to the terms and conditions as set forth in this agreement.

            (a) TERM.  The term shall start Saturday May 5, 2007 at 5:00 p.m. and shall expire                   October 31, 2008 at 3:00 p.m.  

            (b) EXTENDED TERM. Upon the expiration of the principal term there shall be no                    additional term. 

            5. RENT. Tenant shall pay rent (rent) to LANDLORD in the amount of $375 per each month, except for the month of May 2007, which shall be prorated and only $314.51 shall be due.   Rent shall be deemed received on time if received by landlord or postmarked no later than the first day of each month.  If a postage meter is used, rent shall be deemed received when actually received by Landlord. 

            (a) LATE FEE.  Tenant shall pay a late fee of $40 for rent payments received more three days after the due date.

            (b) ELECTRIC CONSUMPTION. Tenant further agrees to pay LANDLORD 20% of the total electric utility fee.  Tenant shall be permitted ten days to pay electric utility fees due after receipt of a copy of said utility fee. 

            All rent and utility fees shall be payable to Arnold Hernandez, PO Box 1419, San Marcos, CA 92079.

            (c) DEPOSIT.  TENANT shall deposit $4000, which shall be returned at the end of the lease agreement less any damage caused to the common areas or the office  by TENANT or TENANT’s invitees.

            6.  DEFAULT. Any failure by Tenant to pay the rent or any other fees or charges as provided for in this Lease when due, or any failure by Tenant to observe or perform any other provisions, covenant or condition of this Lease to be observed or performed by Tenant, where such failure to pay or failure to observe or perform continues for more than three days after written notice from LANDLORD to Tenant, shall constitute a default by Tenant under this Lease.

               Upon any such default, LANDLORD shall have all remedies available to LANDLORD at law and in equity.

            7. ADDITIONAL CONSIDERATION.   Tenant shall be entitled to use the property only to operate lawful activities only, and agrees not operate or install any kitchen appliances, refrigerators, heaters, stoves, ranges, indoor barbeque grills, outdoor barbeque grills, or other devices that may pose a risk of fire, discomfort, or injury to tenant or others, or any such  devices that require or consume excessive amounts of electricity or cause strong odors that may disturb other sub-tenants.  Tenant agrees not to store chemicals, explosives, or other materials posing a risk of bodily harm to tenant or others.   Tenant agrees to refrain from preparing hot meals or beverages within the suite.  Tenant agrees to abide by all laws whether local, county, state or federal.  Failure to observe these promises shall constitute a material breach.

            As further consideration tenant agrees to use due care for the belongings and things of Landlord and other tenants and agrees not to invite anyone that may pose a risk of bodily injury to himself or others.  As additional consideration Tenant agrees to refrain from playing loud music or creating other noise that would interfere with landlord or other tenants right to quiet enjoyment of the suite.

            As further consideration tenant understands and agrees that there are fire sprinklers and their operation is beyond landlords control and tenants personal property is at risk of damage should said sprinklers become operational tenant assumes such a risk. 

            As additional consideration tenant may not sublease or assign without written approval from Landlord. 

            8. AUTHORITY OF LANDLORD. LANDLORD covenants and warrants that LANDLORD is the LESSOR of the property and that LANDLORD has full power and authority to enter into and perform under the covenants of this lease, including, without limitation, sub-leasing the property and authorizing the maintenance of the advertising structure at the location provided.  LANDLORD grants to Tenant quiet enjoyment of the property and warrants and agrees to defend Tenant in the quiet enjoyment of the property during the term of this lease.  In the event of any breach of any of the foregoing, LANDLORD shall promptly rectify the same at the sole cost and expense and shall indemnify, defend, and hold Tenant harmless from and against any liability, loss, claim action or expenses suffered by Tenant in connection with any such breach.

            9. MAINTENANCE OF STRUCTURE. Tenant shall, at its expense, maintain, service and keep in good condition and repair the existing office.  Tenant shall also keep all areas under, on or about the existing space clean and free of all rubbish, debris and waste.  Tenant shall, in the event of any breach of any of the foregoing, rectify the same at their sole cost and expense within 10 days following written notice from to LANDLORD to Tenant, and Tenant shall indemnity, defend and hold LANDLORD harmless from and against any liability, loss, claim, action or expense suffered by LANDLORD in connection with any such breach.

            10. INDEMNITY AND INSURANCE. Each party agrees to indemnity and hold harmless the other from any and all claims or demands on account of bodily injury or physical property damage caused by or resulting from any negligent or willful acts or omissions of the indemnifying party or its agent, employees or contractors.  Tenant agrees to carry, at is own cost and expense, general liability insurance in the amount of one million dollars covering any such contingency during the term of this lease and add LANDLORD and GRANITE/ESPLANADE as additional insured.

            11. CONVEYANCE. This lease shall be biding upon heirs, executors, personal representatives, successors, and assigns for the parties hereto and LANDLORD agrees to notify Tenant of any changes or ownership of the property related hereto or of Landlord’s mailing address within thirty days of such change.  LANDLORD agrees to hold Tenant harmless from any action resulting from failure to provide said notice.  LANDLORD shall not assign its interest under this lease or any part hereof except to a party who purchases the underlying fee title to the property, or to a trust or any other entity in which Jose and Leticia Arias retain ownership or control; and Tenant shall not assign its interest under this Lease or any part thereof except to party who purchases title to the subject sign structures, provided however, this sentence shall not preclude collateral assignment of Landlord’s or Tenant’ interest under this lease to a lender as part of a bona fide loan transaction.

            12. CONDEMNATION. In the event that all or any part of the property is acquired or sought to be acquired by any entity having or delegated the power of eminent domain, Tenant shall be entitled to be compensated from any award or consideration payable by the acquiring entity for all costs, damages, and value loss incurred by Tenant relating to its leasehold, as improved with the outdoor structure.  LANDLORD may not terminate this lease under any right or circumstance if the property has been taken or is threatened to be taken by eminent domain, or if the property is conveyed to any entity or its agent with eminent domain authority.  No present or future modifications to this paragraph shall be effective unless this paragraph is specifically referenced.

            13. DAMAGE TO PREMISES. In the event the premises are damage through fire or other acts  not he fault of TENANT, then TENANT shall be excused from paying rent and LANDLORD shall not held harmless.  Shall the premises be uninhabitable for a period of more than ten days as a result of damage not caused by TENANT, then TENANT shall have the right to terminate the lease agreement.   Any damages caused by TENANT shall be repaired at TENANT’s expense.

            14. ENTIRE AGREEMENT. This lease contains the entire agreement between the parties and may not be changed except by written agreement signed by the parties.  Oral representations or agreements shall have no effect.  If the proper legal description of the property is not attached, either party may attach or provide it at a later time.

            15. TENANT agrees to provide contact information to  management as well as an access to key to the office space

            16. APPLICABLE LAW.  This lease shall be governed by and construed in accordance with the laws of the State of California and venue shall be San Diego County.

            17. ARBITRATION. Unless specifically stated otherwise, any controversy or claim arising out of or relating to this agreement, or its breach, shall be settled by arbitration in accordance with the rules of the American Arbitration Association, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.  Unless specifically stated otherwise, each party shall bear their own attorney fees and costs, if any, associated with the Arbitration.  Venue shall be San Diego County.  Discovery shall be per the California Civil Discovery Act; Code of Civil Procedure §§ 2016.010-2036.050 as amended. 

            18.  LANDLORD and Tenant, by and through its agents, employees, or representatives hereby acknowledge they have read and understood the foregoing and agree to be bound by it.

            19. NOTICE. All notices required or permitted under this lease shall be given in writing and shall be deemed given: on the day of service, if personally delivered, or on the day received by the other party  if sent by certified mail return receipt at the designated address listed below.  Either party may change the address for giving of notice by so notifying the other party by written notice given in the manner set forth.

 

Notices shall be given as follows:

 

If to Tenant

                        ____________________________________________________

 

                        ____________________________________________________

                       

                        ____________________________________________________

 

If to LANDLORD

                                   Arnold Hernandez

                                   PO Box 1419

                                   San Marcos, CA 92079

           

By: __________________________________________

            Arnold Hernandez

 

 

Tenant

 

By: __________________________________________

Authorized Agent for Tenant

 

Print Name:___________________________________Title____________________________

 

 

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