Kentucky retail lease agreement template

Kentucky Retail Lease Agreement

This Kentucky Retail Lease Agreement ("Agreement") is made and entered into as of [Date], by and between [Landlord's Full Legal Name], residing at [Landlord's Address] ("Landlord"), and [Tenant's Full Legal Name], residing at [Tenant’s Address] or, if an entity, a [State of Formation] [Entity Type] with its principal place of business at [Tenant’s Business Address], and whose registered agent in Kentucky is [Registered Agent's Name] located at [Registered Agent's Address] ("Tenant").

1. Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the retail space located at [Property Address], in [County] County, Kentucky, legally described as [Legal Description of Property] and further depicted with boundary description as [Property Boundary Description].

Option A: The leased premises consist of approximately [Square Footage] square feet and are located [Location within Building/Shopping Center].

Option B: Attached hereto as Exhibit A is a site plan depicting the premises and access points.

Option C: Tenant shall have the right to use the following access points: [Description of Access Points].

2. Use of Premises

The Premises shall be used and occupied solely for the purpose of [Permitted Use - Specific Description of Goods/Services], and for no other purpose. This permitted use is in accordance with Kentucky zoning regulations.

Option A: The Tenant's hours of operation shall be [Hours of Operation].

Option B: Tenant agrees to comply with all applicable retail-specific code requirements.

Option C: If applicable, Tenant agrees to comply with Kentucky Alcoholic Beverage Control (ABC) laws and regulations.

Tenant shall not change the use of the Premises without Landlord's prior written consent.

Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld per Kentucky law.

3. Term

The term of this Lease shall commence on [Start Date] ("Commencement Date") and shall terminate on [End Date] ("Expiration Date"). The possession date shall be [Possession Date].

Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Term] each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the Expiration Date.

Option B: Tenant shall have the right of first refusal to lease the adjacent space located at [Address of Adjacent Space]

Option C: This lease may be terminated early by Tenant under the following conditions: [List of Conditions for Early Termination].

4. Rent

Tenant shall pay Landlord base rent in the amount of [Dollar Amount] per [Month/Year], payable in advance on the [Day] day of each [Month/Year] commencing on the Commencement Date.

Option A: Rent shall be paid to Landlord at [Payment Address].

Option B: Rent shall escalate [Percentage]% annually commencing [Date].

Option C: In addition to base rent, Tenant shall pay Landlord percentage rent equal to [Percentage]% of Tenant's [Gross/Net] sales exceeding [Dollar Amount] per [Month/Year].

Option D: Percentage rent, if applicable, shall be calculated and paid to Landlord [Frequency of Payment].

5. Security Deposit

Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount], which shall be held by Landlord in an account at [Bank Name], located at [Bank Address].

Option A: The security deposit shall be used to cover any damages to the Premises caused by Tenant, excluding normal wear and tear.

Option B: Landlord shall return the security deposit to Tenant within [Number] days after the Expiration Date, less any deductions for damages or unpaid rent, as per Kentucky statute.

Option C: Any interest earned on the security deposit will accrue to [Landlord / Tenant].

6. Common Area Maintenance (CAM)

Tenant shall pay its proportionate share of Common Area Maintenance (CAM) expenses, which shall be allocated as [Allocation Method, e.g., square footage].

Option A: Landlord shall provide Tenant with a detailed accounting of CAM expenses [Frequency, e.g., annually].

Option B: CAM expenses shall include [List of Inclusions].

Option C: CAM expenses shall exclude [List of Exclusions].

7. Utilities

Tenant shall be responsible for all utilities serving the Premises, including [List of Utilities, e.g., electricity, gas, water, trash].

Option A: Tenant shall establish direct accounts with the utility providers.

Option B: Landlord shall provide utilities and bill Tenant based on submeter readings or allocation, as per Kentucky utility laws.

Option C: Separately metered charges for [Utility Type] will be billed by Landlord on [Billing Cycle] basis.

8. Tenant Improvements

Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises.

Option A: All improvements shall be subject to Landlord's prior written approval.

Option B: Tenant shall obtain all necessary permits, including those required by the Kentucky Building Code.

Option C: All improvements shall be constructed in a good and workmanlike manner.

9. Maintenance and Repair

Tenant shall maintain the interior of the Premises in good repair and condition, including [List of Interior Maintenance Responsibilities]. Tenant is responsible for daily cleaning and waste removal. Tenant shall also maintain pest control.

Landlord shall maintain the exterior of the Premises, including the roof, foundation, and structural components, in good repair and condition. Landlord shall also maintain the common areas.

Option A: Landlord shall respond to repair requests within [Number] hours.

Option B: Landlord shall have the right to enter the Premises for inspection and repair upon [Number] hours' advance notice, except in cases of emergency.

10. Insurance

Tenant shall maintain commercial general liability insurance with a minimum coverage of [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate, as well as business interruption, fire and theft insurance.

Option A: Landlord shall be named as an additional insured on Tenant's insurance policy.

Option B: Tenant shall provide Landlord with a certificate of insurance evidencing coverage.

Option C: Tenant’s insurance must be provided by an insurer rated [Rating] or higher by [Rating Agency].

Landlord shall maintain insurance on the building, including fire and casualty insurance.

11. Taxes

Tenant shall be responsible for the payment of all personal property taxes and business inventory taxes levied on Tenant's property located on the Premises, in compliance with Kentucky law.

Option A: Tenant shall also be responsible for any local occupational taxes.

Option B: Landlord shall be responsible for real estate taxes.

12. Signage

Tenant shall have the right to install signage on the Premises, subject to Landlord's prior written approval and compliance with all applicable city and county ordinances in Kentucky.

Option A: The location and design of the signage shall be as agreed upon by Landlord and Tenant.

Option B: Tenant shall be responsible for obtaining all necessary permits for the signage.

13. Compliance with Laws

Tenant shall comply with all applicable laws, rules, and regulations, including ADA accessibility requirements, fire and life safety codes, and all local business licenses and health permits. Tenant shall adhere to Kentucky zoning, environmental laws, and public health/safety rules.

14. Assignment and Subletting

Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld per Kentucky law.

Option A: Landlord shall have the right to recapture the Premises in the event of a proposed assignment or subletting.

Option B: Tenant must provide Landlord with at least [Number] days’ notice before any assignment or subletting can take place.

15. Default

If Tenant fails to pay rent when due or otherwise breaches this Lease, Landlord shall have the right to terminate this Lease and pursue all available remedies, including eviction (“forcible detainer”) under Kentucky law.

Option A: Tenant shall have [Number] days to cure any default after written notice from Landlord.

Option B: Landlord shall have the right to re-enter and repossess the Premises in accordance with Kentucky law.

16. Move-In and Move-Out

Tenant shall leave the premises broom-clean at move-out. Tenant is responsible for removing all fixtures and repairing alterations.

Landlord shall return the security deposit within [Number] days of move-out, as per Kentucky law.

17. Indemnification

Tenant shall indemnify and hold Landlord harmless from any and all claims, damages, and liabilities arising out of Tenant's use of the Premises, consistent with Kentucky contract enforceability. Landlord's liability is limited.

18. Condemnation

If the Premises are taken by eminent domain, this Lease shall terminate, and any condemnation proceeds shall be distributed as agreed upon by Landlord and Tenant.

19. Damage or Destruction

If the Premises are damaged or destroyed by fire or other casualty, Landlord shall have the option to restore the Premises, and rent shall abate during the period of restoration. If Landlord does not restore the Premises, this Lease shall terminate.

20. Audit

Landlord shall have the right to audit Tenant's gross sales if percentage rent is applicable. Audit logistics will be discussed. All data will be confidential.

21. Governing Law

This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky. Venue for any dispute shall be [Name of County] County, Kentucky.

22. Notices

All notices shall be in writing and shall be deemed to be given when delivered personally or sent by certified mail to the addresses set forth above.

23. Entire Agreement

This Lease constitutes the entire agreement between the parties and supersedes all prior agreements and understandings. Any amendments to this Lease must be in writing and signed by both parties.

24. Successors and Assigns

This Lease shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

25. Fair Housing

Landlord and Tenant shall comply with all applicable fair housing and public accommodation requirements where the retail use type requires.

26. Environmental Conditions

Tenant shall comply with all Kentucky-specific rules for environmental conditions, including hazardous material storage, grease traps, and waste disposal.

27. Merchant Association

If the Premises are part of a managed shopping center, Tenant agrees to abide by the merchant association rules.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

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[Landlord's Signature]

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[Landlord's Printed Name]

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[Tenant's Signature]

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[Tenant's Printed Name/Title (if entity)]