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COMMERCIAL LEASE AGREEMENT

This Commercial Lease Agreement ("Lease") is made and entered into as of January 15, 2025 ("Effective Date"), by and between:

LANDLORD:
METROPOLITAN PROPERTIES LLC, a Delaware limited liability company ("Landlord")
Address: 1200 Commerce Boulevard, Suite 1500, Chicago, IL 60601
Contact: Thomas Richards, Property Manager
Email: trichards@metroproperties.com
Phone: (312) 555-8900

TENANT:
INNOVATIVE TECH SOLUTIONS INC., a California corporation ("Tenant")
Address: 500 

{
  "document_type": "lease_agreement",
  "lease_type": "commercial",
  "lease_structure": "modified_gross",
  "effective_date": "2025-01-15",
  "parties": {
    "landlord": {
      "name": "Metropolitan Properties LLC",
      "type": "llc",
      "address": "1200 Commerce Boulevard, Suite 1500, Chicago, IL 60601",
      "contact": "Thomas Richards, Property Manager, trichards@metroproperties.com, (312) 555-8900"
    },
    "tenant": {
      "name": "Innovative Tech Solutions Inc.",
      "type": "corporation",
      "address": "500 Innovation Way, San Jose, CA 95110",
      "contact": "Sarah Chen, Chief Operations Officer, schen@innovativetech.com, (408) 555-1200"
    },
    "guarantor": {
      "present": true,
      "name": "Michael Chen",
      "guarantee_type": "Full"
    }
  },
  "premises": {
    "property_address": {
      "street": "400 North Michigan Avenue",
      "suite_unit": "18th and 19th Floors",
      "city": "Chicago",
      "state": "Illinois",
      "zip": "60611"
    },
    "building_name": "Metropolitan Tower",
    "rentable_sqft": 25000,
    "usable_sqft": 22500,
    "load_factor": "11.11%",
    "floor": "18th and 19th floors",
    "parking_spaces": 40,
    "storage": "500 square feet in basement at no additional charge",
    "permitted_use": "General office purposes, including technology research and development, software development, administrative functions, and related ancillary uses",
    "exclusive_use": "Technology training center within the Building"
  },
  "term": {
    "commencement_date": "2025-05-01",
    "rent_commencement": "2025-08-01",
    "expiration_date": "2035-04-30",
    "term_months": 120,
    "early_access": "April 1, 2025 for fixtures, furniture, and equipment installation",
    "holdover": "150% of then-current Base Rent on month-to-month basis"
  },
  "rent": {
    "base_rent": {
      "monthly_amount": "$93,750 (Year 1)",
      "annual_amount": "$1,125,000 (Year 1)",
      "per_sqft_rate": "$45.00/RSF (Year 1)",
      "payment_due": "1st day of each month"
    },
    "rent_schedule": [
      {
        "period": "Year 1 (Months 1-12)",
        "monthly_rent": "$93,750",
        "annual_rent": "$1,125,000"
      },
      {
        "period": "Year 2 (Months 13-24)",
        "monthly_rent": "$96,875",
        "annual_rent": "$1,162,500"
      },
      {
        "period": "Year 3 (Months 25-36)",
        "monthly_rent": "$100,000",
        "annual_rent": "$1,200,000"
      },
      {
        "period": "Year 4 (Months 37-48)",
        "monthly_rent": "$103,125",
        "annual_rent": "$1,237,500"
      },
      {
        "period": "Year 5 (Months 49-60)",
        "monthly_rent": "$106,250",
        "annual_rent": "$1,275,000"
      },
      {
        "period": "Year 6 (Months 61-72)",
        "monthly_rent": "$109,375",
        "annual_rent": "$1,312,500"
      },
      {
        "period": "Year 7 (Months 73-84)",
        "monthly_rent": "$112,500",
        "annual_rent": "$1,350,000"
      },
      {
        "period": "Year 8 (Months 85-96)",
        "monthly_rent": "$115,625",
        "annual_rent": "$1,387,500"
      },
      {
        "period": "Year 9 (Months 97-108)",
        "monthly_rent": "$118,750",
        "annual_rent": "$1,425,000"
      },
      {
        "period": "Year 10 (Months 109-120)",
        "monthly_rent": "$121,875",
        "annual_rent": "$1,462,500"
      }
    ],
    "escalations": {
      "type": "Fixed",
      "annual_increase": "3%",
      "cpi_floor": null,
      "cpi_ceiling": null
    },
    "free_rent": {
      "months": 3,
      "conditions": "Tenant not being in default under this Lease"
    }
  },
  "additional_rent": {
    "cam_charges": {
      "estimated_monthly": "$12,500",
      "cap": "5% per year cumulative compounding",
      "base_year": "2025",
      "tenant_share": "8.33%"
    },
    "property_taxes": {
      "included": false,
      "tenant_pays": true,
      "base_year": "2025"
    },
    "insurance": {
      "included": false,
      "tenant_pays": true
    },
    "utilities": {
      "included": [],
      "tenant_pays": [
        "Electricity",
        "Gas",
        "Water",
        "Telecommunications"
      ],
      "submeter": true
    }
  },
  "security_deposit": {
    "amount": "$281,250",
    "months_rent": 3,
    "letter_of_credit": true,
    "reduction_schedule": "Reduced by one month's rent at end of Year 3 and Year 5",
    "interest": false,
    "return_timing": "30 days following termination and surrender"
  },
  "renewal_options": {
    "available": true,
    "number_of_options": 2,
    "term_per_option": "5 years",
    "notice_required": "12 months",
    "rent_determination": "Greater of Fair Market Value or prior year rent plus 3%",
    "fair_market_value": true,
    "fixed_increase": "3%"
  },
  "expansion_rights": {
    "right_of_first_refusal": true,
    "right_of_first_offer": true,
    "expansion_space": "17th and 20th floors of the Building",
    "exercise_notice": "10 business days"
  },
  "termination": {
    "early_termination_right": true,
    "termination_fee": "9 months' Base Rent plus unamortized TI costs and leasing commissions",
    "termination_notice": "12 months prior written notice, effective end of Year 5",
    "casualty_termination": "Either party may terminate if restoration exceeds 270 days",
    "condemnation_termination": "Either party may terminate if substantial portion taken"
  },
  "tenant_improvements": {
    "tenant_improvement_allowance": "$1,250,000",
    "ti_per_sqft": "$50.00/RSF",
    "landlord_work": "Deliver Premises in warm shell condition with base building systems operational",
    "tenant_work": "All tenant-specific improvements, subject to Landlord's approval",
    "construction_timeline": "120 days following access to Premises",
    "excess_costs": "Tenant pays excess costs"
  },
  "maintenance_repairs": {
    "landlord_responsible": [
      "Building structure, foundation, and roof",
      "Building exterior and common areas",
      "Base building mechanical, electrical, and plumbing systems",
      "Elevators and life safety systems",
      "Parking garage"
    ],
    "tenant_responsible": [
      "Interior of the Premises",
      "Tenant's fixtures and equipment",
      "HVAC systems serving exclusively the Premises",
      "Supplemental HVAC units",
      "Alterations or improvements made by Tenant"
    ],
    "hvac": "Tenant responsible for HVAC equipment serving exclusively the Premises",
    "structural": "Landlord",
    "roof": "Landlord",
    "common_areas": "Landlord"
  },
  "insurance_requirements": {
    "tenant_insurance": {
      "general_liability": "$2,000,000 per occurrence, $5,000,000 aggregate",
      "property_insurance": "Full replacement cost of Tenant's property and improvements",
      "workers_comp": true,
      "additional_insured": true,
      "waiver_of_subrogation": true
    },
    "landlord_insurance": "Property insurance on Building and commercial general liability insurance"
  },
  "assignment_subletting": {
    "permitted": true,
    "landlord_consent": "Required, not to be unreasonably withheld, conditioned, or delayed",
    "recapture_right": true,
    "profit_sharing": "50% of excess rental after deducting reasonable transaction costs",
    "affiliate_transfers": "Permitted without consent to parent, subsidiary, or affiliate"
  },
  "alterations": {
    "consent_required": true,
    "structural_changes": "Require Landlord's prior approval, performed by Landlord's designated contractor",
    "signage": "Building-standard suite signage, directory listing, lobby signage, and Building exterior signage subject to approval",
    "removal_at_termination": "At Landlord's election, Tenant shall remove designated alterations"
  },
  "default_remedies": {
    "monetary_default_cure": "10 days after written notice",
    "non_monetary_cure": "30 days after written notice, or longer if diligently pursuing cure",
    "landlord_remedies": [
      "Terminate Lease",
      "Accelerate rent",
      "Re-enter and relet Premises",
      "Any other remedy at law or equity"
    ],
    "tenant_remedies": [
      "Specific performance",
      "Rent abatement for service interruption",
      "Self-help after notice and opportunity to cure",
      "Termination if Premises untenantable for 30+ days"
    ]
  },
  "miscellaneous": {
    "quiet_enjoyment": true,
    "subordination": true,
    "estoppel_certificates": "Within 15 days of request",
    "relocation_right": false,
    "force_majeure": true,
    "governing_law": "State of Illinois",
    "attorneys_fees": "Prevailing party entitled to recover reasonable attorney's fees"
  },
  "exhibits": [
    {
      "exhibit_id": "Exhibit A",
      "title": "Floor Plan and Premises Description",
      "description": "Detailed floor plan and premises boundaries"
    },
    {
      "exhibit_id": "Exhibit B",
      "title": "Work Letter Agreement",
      "description": "Tenant improvement terms and specifications"
    },
    {
      "exhibit_id": "Exhibit C",
      "title": "Building Rules and Regulations",
      "description": "Building operating rules"
    },
    {
      "exhibit_id": "Exhibit D",
      "title": "Form of SNDA",
      "description": "Subordination, Non-Disturbance, and Attornment Agreement"
    }
  ],
  "signatures": {
    "landlord_signed": true,
    "landlord_signatory": "Thomas Richards, Managing Director",
    "tenant_signed": true,
    "tenant_signatory": "Sarah Chen, Chief Operations Officer",
    "guarantor_signed": true,
    "date_signed": "2025-01-15"
  },
  "validation": {
    "premises_identified": true,
    "term_specified": true,
    "rent_clear": true,
    "use_defined": true,
    "maintenance_allocated": true
  }
}