This letter of intent to lease commercial property (hereinafter referred to as the “Letter of Intent”) represents the basic terms for an agreement between the Lessee and Lessor. After this Letter of Intent has been made, a formal agreement may be constructed to the benefit of the Parties involved.
The Lessee. ___________________________________ (hereinafter referred to as the “Lessee”).
The Lessor. ____________________________________ (hereinafter referred to as the “Lessor”).
Address of Premises. ___________________________(hereinafter referred to as the “Premises”).
Lease Term. The term of the lease shall be for a period of 1 year commencing on the __________ day of _________________, 20___, and expiring on the ______________day of ___________________, 20___. The term of the actual lease will commence around the installation of the Lessee’s vertical farms equipment.
Use of Leased Premises. The Lessee intends to use the Premises for its urban farming start-up and specifically, to install its vertical farms.
Base Rent. The base rent of $ $500 shall be paid monthly on the ______day of each month with the first payment due upon the commencement of the lease (hereinafter referred to as the “Base Rent”). This Base Rent is negotiable.
Expenses. In addition to the Base Rent, the Lessee shall be required to pay the following monthly expenses:
Security Deposit. A security deposit in the amount of $__________________shall be due prior to or upon the signing of the lease.
Lease Renewal. Lessee has the right to renew the lease for one year, which may be exercised by giving written notice to the Lessor no less than ninety days prior to the expiration of the lease.
Rent Increase. Upon a lease renewal, the Base Rent shall:
☐ – Increase by _____________Percent (___%).
☐ – Increase by ___________________Dollars ($______________).
☐ – Not increase.
Subletting. The Lessee may not sublet the Premises without first obtaining the prior written consent of the Lessor.
Late Rent. If the Lessee fails to pay the total rent payment for more than ___ days after it is due, the following penalty may be charged:
☐ – A late fee of ______________Dollars ($________) per day until the overdue amount is paid.
☐ – An interest rate of _______ Percent (___%) per annum on a daily basis until the overdue amount is paid.
Binding Effect: This Letter of Intent shall be considered: (Initial and Check)
☐ Binding – Therefore, the parties acknowledge that remedies at law will be inadequate for any breach of this Letter of Intent and consequently agree that this Letter of Intent shall be enforceable by specific performance. The remedy of specific performance shall be cumulative of all of the rights at law or in equity of the parties under this Letter of Intent.
☐ Non-Binding – Therefore, the parties acknowledge that this Letter of Intent is not enforceable by any Party. The terms outlined herein are solely for the purposes of reaching a later agreement in the future, of which the Lessee and Lessor are not bound.
Termination. This agreement may be terminated after serving a __________days’ notice to the other party. The Lessee may terminate this agreement due to but not limited to the following: if the Premises is sold to a different owner, the Lessee’s access to their equipment is restricted by the Lessor, or the Lessee’s equipment is tampered with or accessed without their consent.
Dispute resolution. Parties agree to settle disputes under this agreement through Mediation.
Governing Law. This Letter of Intent shall be governed under the laws of the State of Colorado without regard to its conflict of law provisions.
Acceptance. If you are agreeable to the aforementioned terms, please sign and return a duplicate copy of this Letter of Intent by no later than _______________.
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