Why have this provision: The provision states the developer’s responsibility to pay for the utilities in regards to the facilities, thereby relieving the landowner from the responsibility to pay for the utilities. Section 3.3........... [*Only if there is Royalty Payment*]...................... 6 Why have this provision: The provision is applicable only if there is a royalty payment and the landowner may be able to view the records on its own expense. Royalty payment is a periodic charge that the developer will have to pay to the landowner some percent of either the overall or net sales of the business and the payment is required each week, month, quarter, or year. ARTICLE IV. Developer’s Covenants.............................................. 7 Section 4.1........... Mechanics 7 Why have this provision: The provision states the developer’s responsibility to keep the premises free and clear from all liens and thereby protecting the landowner from potential harms incurred upon lien or any encumbrance. Section 4.2........... Permits and Laws............................................................... 7 Why have this provision: This provision states the developer’s responsibility to comply with all legal requirements. It also states that the developer will have the right to contest the validity/applicability of legal requirement if needed, with the cooperation of the landowner. Landowner will be reimbursed for any out-of-pocket expenses incurred while cooperating. This provision thereby protects landowner from any potential liability resulting from failure in meeting legal requirements. In the current lease agreement, there is no provision in relation to first obtaining the legal requirements or zoning – compliance should come afterwards. The parties can determine
Why have this provision: The provision states the developer’s responsibility to pay for the utilities in regards to the facilities, thereby relieving the landowner from the responsibility to pay for the utilities. Section 3.3........... [*Only if there is Royalty Payment*]...................... 6 Why have this provision: The provision is applicable only if there is a royalty payment and the landowner may be able to view the records on its own expense. Royalty payment is a periodic charge that the developer will have to pay to the landowner some percent of either the overall or net sales of the business and the payment is required each week, month, quarter, or year. ARTICLE IV. Developer’s Covenants.............................................. 7 Section 4.1........... Mechanics 7 Why have this provision: The provision states the developer’s responsibility to keep the premises free and clear from all liens and thereby protecting the landowner from potential harms incurred upon lien or any encumbrance. Section 4.2........... Permits and Laws............................................................... 7 Why have this provision: This provision states the developer’s responsibility to comply with all legal requirements. It also states that the developer will have the right to contest the validity/applicability of legal requirement if needed, with the cooperation of the landowner. Landowner will be reimbursed for any out-of-pocket expenses incurred while cooperating. This provision thereby protects landowner from any potential liability resulting from failure in meeting legal requirements. In the current lease agreement, there is no provision in relation to first obtaining the legal requirements or zoning – compliance should come afterwards. The parties can determine
Model_CSG_LeaseAgreements_Guide.docx