XXXX
XXX
XXX,
Independence Twp.
[Enter Date]
XXX
XXX, LLC
[Enter Address]
RE: Response to Letter of Intent
I have gone through the Proposal for Lease. I have therefore made my response and comments
regarding the issues I find pertinent and unsettled, which need to be looked out for in lease.
1. Tenant
You have requested for information on the type of entity that Berry Clean Soaps is. Berry Clean
Soaps is a [ENTER TYPE OF COMPANY].
You have also requested for a record of the last two years of the business tax returns. I shall
produce the requested record when we finalize the negotiation of the lease.
2. Guarantor
You have requested that the guarantor provides the last two years of personal tax returns. I shall
produce the requested record when we finalize the negotiation of the lease.
3. Rental Abatement
Although you state that there shall be an abatement of rent for the first and second months in the
initial term, I request that it be made clear/expressly in the lease that I shall have the first thirty
(3) to sixty (60) days prior to the commencement of the lease, to set up.
4. Base Minimum Rent
I suggest that you reduce the base rent by $100, and add a cap on triple net.
5. Advance Rental:
I further refer to the statement above that it be made clear/expressly in the lease that I shall have
the first thirty (3) to sixty (60) days prior to the commencement of the lease, to set up.
6. Permitted Use
The provision should ensure the company has flexibility. It should include an option for me to
venture and/or try out other businesses in the event the soap business is not doing well, or
diversify the services performed by my company.
In addition to the responses above, I would like to point out the following:
1. Plans and specifications.
You will allow me to make specifications on how I will adapt the premises to suit my
business. Further, the lease should state how long I will have to prepare the said plans and
specifications, and how long you will have to approve them (and whether silence will be
deemed approval or disapproval).
2. Expansion of space
I suggest that we have a clause containing an option to expand the premises and, if
feasible, specify the acceptable expansion premises in advance. In this regard, you may
either give me a right of first offer or a right of first refusal for additional expansion
space.
3. Early termination
I suggest an early termination right to protect msyelf against the risk that a location is
unsuccessful or that my business fails to achieve a certain volume of sales or some other
metric.
4. Assignment and sub-letting
The LOI does not mention anything about transfers of the tenant’s interest, either by
assignment or subletting, and whether both are permitted with/without the landlord’s
consent or even notice to the landlord.
Regards!
XXX
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