Option to Lease Agreement

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Option to Lease Agreement

Option to Lease Agreement

1. PARTIES

This Option to Lease Agreement ("Agreement") is made and entered into on this {{day}} day of {{month}}, {{year}}, by and between:

{{landlord_company_name}}, a company duly incorporated in accordance with the laws of {{jurisdiction}}, with its principal place of business at {{landlord_address}} (hereinafter referred to as "the Lessor").

AND

{{tenant_company_name}}, a company duly incorporated in accordance with the laws of {{jurisdiction}}, with its principal place of business at {{tenant_address}} (hereinafter referred to as "the Lessee").

2. DEFINITIONS

In this Agreement, unless the context otherwise indicates:

3. GRANT OF OPTION

The Lessor hereby grants to the Lessee an exclusive option to lease the Property (as defined in Clause 4 below) on the terms and conditions set forth in this Agreement.

This Option shall commence on {{option_start_date}} and terminate on {{option_end_date}} (hereinafter referred to as "the Option Period").

4. THE PROPERTY

The property that is the subject of this Option is located at {{property_address}}, and is more fully described as {{property_description}} (hereinafter referred to as "the Property").

5. OPTION FEE

In consideration for the grant of this Option, the Lessee shall pay to the Lessor a non-refundable option fee of {{option_fee_amount}} ({{option_fee_currency}}) on or before {{option_fee_payment_date}}.

This Option Fee shall (select one):

a. Be applied towards the first month's rental upon exercise of the Option.

b. Be separate from any rental payments and not offset against future rent.

6. EXERCISE OF OPTION

The Lessee may exercise this Option by giving written notice to the Lessor at {{lessor_notice_address}} on or before the expiry of the Option Period.

Upon exercise of this Option, the parties shall execute a formal Lease Agreement in the form annexed hereto as Annexure "A" (the "Lease Agreement") within {{days_to_sign_lease}} business days of the exercise notice.

7. LEASE TERMS

The principal terms and conditions of the proposed Lease Agreement shall be as follows:

a. **Commencement Date:** {{lease_commencement_date}}

b. **Lease Period:** {{lease_period}}

c. **Monthly Rental:** {{monthly_rental_amount}} ({{monthly_rental_currency}}), subject to annual escalation of {{escalation_percentage}}% compounded annually.

d. **Deposit:** A security deposit of {{deposit_amount}} ({{deposit_currency}}) shall be payable upon signing the Lease Agreement.

e. **Permitted Use:** The Property shall be used for {{permitted_use}}.

f. **Operating Costs:** {{operating_costs_details}}

g. **Utilities:** {{utilities_details}}

8. CONDITION OF PROPERTY

The Lessee shall be entitled to inspect the Property during the Option Period to satisfy itself as to its condition and suitability for the intended use.

9. NON-EXERCISE OF OPTION

Should the Lessee fail to exercise this Option within the Option Period, this Agreement shall terminate automatically, and the Option Fee shall be forfeited to the Lessor.

10. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of {{governing_jurisdiction}}.

11. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with regard to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements, whether written or oral.

12. SIGNATURES

Thus done and signed at {{place_of_signing}} on the date first above written.

AS WITNESSES:

1. _________________________ _________________________

(Name: {{witness_name_1}}) (Lessor Company Name)

2. _________________________

(Name: {{witness_name_2}})

AS WITNESSES:

1. _________________________ _________________________

(Name: {{witness_name_3}}) (Lessee Company Name)

2. _________________________

(Name: {{witness_name_4}})

_________________________

(Name: {{lessor_signatory_name}})

(Director/Authorised Representative)

__________________________

(Name: {{lessee_signatory_name}})

(Director/Authorised Representative)