Common use of LEASING ARRANGEMENT Clause in Contracts

LEASING ARRANGEMENT. 32.1 That on completion of the project, the Developer undertakes to put the Said Unit on lease and to effectuate the same the Allottee hereby authorizes the Developer (and agrees, if deemed expedi- ent, to execute any other necessary document in future in this regard in favor of the Developer) to negotiate and finalize leasing arrangement with any suitable tenants. The Allottee expressly authorizes the Developer to enter into any agreement with any third party for leasing of the Said Unit and to appear before the HUDA or any other competent authority of Assurances and to lodge the lease deed as aforesaid for registration and to pay stamp duty and registration charges on account of the Allottee, in respect of the lease if payable. However, it is understood and agreed between the Allottee and the Developer that : (a) The rents shall be paid by the Lessee / Developer to the Allottee. (b) The Developer shall neither be a Party nor shall be privy to such lease agreement. (c) The Developer shall arrange for the execution and registration of the lease deed but charges & expenses for the same, including but not limited to stamp duty and registration charge, shall be borne by the Allottee / proposed lessee as may be negotiated and agreed to. (d) The unit shall be deemed to have been legally possessed by the Allottee. (e) In the event of non-payment of the rent or any other dues by the Lessee or the delayed pay- ments, the Allottee shall have the remedies available to it as may be stipulated in the said lease agreement. (f) The Developer shall at all times have the right of leasing of the Unit and such decision as to the choice of the tenant and the lease rent shall be binding on the Allottee. This clause is a power of attorney executed by the Allottee as donor with the Developer as donee / attorney and the Allottee hereby ratifies and confirms all acts deeds and things to be done by the Developer as its attorney, by virtue of the presents above . (g) That the Allottee permits the Developer to remit to it the said rent after deducting the expens- es / costs incurred by it (Developer) on a pro rata basis, on the said leasing arrangement including costs on collection of rents from the lease and subsequient payment of rentals to the Allottee on an ongoing basis. Such costs presently workout to Rs 7/- per sq ft per annum of leased super area. In addition, the Allottee also undertakes to pay service tax and other levies as may be applicable from time to time on the said rentals received by it through the Developer. The dues shall be deducted by the Developer in one lump sum from the first rent payable to the Allottee in the financial year. (h) The Allottee shall not without the written consent of the Developer (such consent not being unreasonably withheld) be entitled to take the physical possession including self occupation of the unit. In case an Allottee is given possession of his unit, such possession shall be given in the same state in which, the previous occupant / Lessee had vacated the space viz. ‘as is where is basis’. Further, it is clearly understood by the Allottee that upon such possession being given the Developer’s responsibility or providing services such as air-conditioning, fire fighting and electrical supply shall be limited to catering to modules of area 3000 sq ft each and it shall be the responsibility of the Allottees to further channelize the said services so as to cater to their respective modules provided that due to technical reasons, physical sub- division of floor spaces into independent units admeasuring 3000 sq ft or less shall not be permitted. 32.2 Return on completion of the project and letting-out of unit (a) That on the completion of the project, the unit would be let-out by the Developer to a bonafide lessee at a minimum rental of Rs. per sq. ft. per month less tax deducted at source. In the event of the Developer being unable to finalize the leasing arrangements, it shall pay the minimum rent at Rs. per sq. ft. per month to the Allottee as Minimum Guaranteed Rent for the first 36 months after the date of comple- tion of the project or till the date the said unit is put on lease, whichever is earlier. If on account of any reason, the lease rent achieved is less than Rs. per sq. ft. per month of super area, then the Developer shall return to the Allottee, a compensation calcu- lated at Rs.________________________ (Rupees __________________ (b) If the lease rent exceeds Rs. per sq. ft. super area per month, the Allottee shall be required to pay additional sale consideration for the enhanced rental achieved over and above the committed rental. (c) Such additional consideration shall be calculated at 50% of Rs. (Rupees

LEASING ARRANGEMENT. 32.1 That on completion of the project, the Developer undertakes to put the Said Unit on lease and to effectuate the same the 16.1. The Allottee hereby specifically authorizes the Developer (and agrees, if deemed expedi- ent, Promoter to execute any other necessary document in future in this regard in favor of have the Developer) authority to negotiate and finalize the leasing arrangement in respect of the said Commercial Unit, individually or in combination with other adjoining commercial Spaces/units, with any suitable tenantstenant/s, for whatever period and for whatever rent and with whatever conditions as may be negotiated by the Promoter with the intending lessee(s) and as may be thought fit and appropriate by the Promoter and to execute the lease with the said intending lessee in its own name or on behalf of the Allottee for which the Allottee has vested the Promoter with all the powers and rights which shall not be questioned by the Allottee subsequently. The Allottee expressly authorizes has clearly understood the Developer general risks involved in giving any premises on lease to enter into third parties and has undertaken to bear the said risks exclusively without any agreement liability whatsoever on the part of the Promoter. It is further agreed that: 16.2. The Promoter will pay to the Allottee Rs._ (Rupees _) per sq. ft. super area of the said Unit per month as committed return for up to three years from the date of completion of construction of the said Building or the date the said Unit is put on Lease, whichever is earlier. The Allottee will start receiving lease rental in respect of the said Unit in accordance with the lease document as may be executed and as described hereinafter from the date of commencement of lease rental. If there is a provision in the lease document for any rent free period on account of fit-out by the lessee or any other account, then the Allottee shall not be entitled for any rent during the same. 16.3. The Allottee shall execute documents as may be necessary and as may be desired by the Promoter in this connection without any objection or demur. 16.4. The Promoter shall have the authority to negotiate and finalize the leasing arrangement in respect of the said Unit, individually or in combination with other adjoining units, with any third party suitable tenant/s, for leasing whatever period and for whatever rent and with whatever conditions as may be negotiated by the Promoter with the intending lessee(s) and as may be thought fit and appropriate by the Promoter and to execute the lease with the said intending lessee in its own name or on behalf of the Allottee for which the Allottee has vested the Promoter with all the powers and rights which shall not be questioned by the Allottee subsequently. 16.5. The Promoter shall also have the authority to negotiate, finalize and execute the renewals of the existing leases and the subsequent leases of the Said Unit and to appear before with the HUDA existing/ new tenant(s) in its own name or any other competent authority of Assurances and to lodge the lease deed as aforesaid for registration and to pay stamp duty and registration charges on account behalf of the AllotteeAllottee at his cost & expense, including any brokerage to be paid in respect of the same, and to get registered such renewals/ fresh leases on behalf of the Allottee at his cost and expense. The rent, period and other terms and conditions of such renewals/ fresh leases will be as may be the outcome of negotiations conducted by the Promoter with the existing/ new tenant(s) and the Allottee shall not raise any objection in respect of the same. The Promoter shall be authorized to appear before any competent authority and to lodge any lease if payabledocument in respect of the Said Unit for registration at the cost and expense of the Allottee in accordance with the terms agreed in the lease document for which the Allottee herby authorizes the Promoter. 16.6. The Promoter expects to lease out the Said Unit (individually or in combination with other adjoining units) at a minimum lease rental of Rs. _ _ per sq. ft. carpet area per month for the first term (of whatever period). If on account of any reason, the lease rent achieved in respect of the first term of the lease is less than the aforesaid Rs._ per sq. ft. super area per month, then the Promoter shall pay to the Allottee a onetime compensation calculated at the rate of Rs._ (Rupees only) per sq, ft super area for every one rupee drop in the lease rental below Rs. _ (Rupees _ only) per sq ft. super area per month. This provision shall not apply in case of second and subsequent leases/ lease terms of the said Unit. 16.7. However, it is understood and agreed between if the lease rental in respect of the aforesaid first term of the lease exceeds the aforesaid minimum lease rental of Rs. _ _ per sq. ft. super area, then, the Allottee shall pay to the Promoter additional basic sale consideration calculated at Rs. _ _(Rupees _ _only) per sq. ft super area of the said Unit for every one rupee increase in the lease rental over and above the Developer that :said minimum lease rental of Rs. _ (Rupees _ only) per sq. ft. super area per month. This provision is confined only to the first term of the lease and shall not be applicable in case of second and subsequent leases/ lease terms of the said Unit. (a) 16.8. The rents shall be lease document will stipulate payment of rent by the lessee to the Promoter, who in turn will remit the proportionate rent to the Allottee, after deducting expenses / costs of managing the leasing arrangement & collection of rentals which presently work out to Rs. _-/- per sq ft per annum of the super area leased. The said charges are subject to upward revision subsequently about which the Promoter will keep the Allottee informed in a suitable manner. Although the basic liability to deposit applicable tax paid by the Lessee / Developer lessee on the rent lies with the Allottee but due to practical constraints, the Allottee has authorized the Promoter to deposit the said tax with the authorities on his behalf, to be reimbursed by the Allottee to the Promoter. The Allottee also undertakes to comply with all other statutory requirements in respect of the said Unit without any liability or responsibility on the part of the Promoter. 16.9. During the tenure(s) of the lease(s) as well as during the intervening gaps, the said Unit shall be deemed to be in legal possession of the Allottee. However, the Allottee shall not demand or claim physical possession of the said Unit till it is on lease. 16.10. The Promoter shall not be responsible for any defaults, including non-payment of rent and other dues and similar such breaches by the lessees and the Allottee shall be solely responsible for the same. However, the Promoter will take such legal action as may be deemed fit and proper by it against such defaulting lessee(s) at the cost and expense & risk and responsibility of the Allottee for which the Allottee shall execute appropriate documents/ authority letter and the Allottee shall not be entitled for any rent or return for the periods of such defaults/ non-payment until the same are recovered through court process or otherwise. In case of partial recovery, the Allottee will be entitled for only proportionate rent out of rent recovered from the lessee after appropriation of cost and expenses thereof. 16.11. The Promoter shall not be responsible for any damage caused by any lessee to the Said Unit. However, the Promoter may take such legal action as it may deem fit against such a lessee(s) at the cost & expense and risk & responsibility of the Allottee. (b16.12. The lease document will stipulate payment of maintenance and other such charges by the lessee(s) The Developer shall neither be a Party nor shall be privy to such lease agreement. (c) The Developer shall arrange for during the execution and registration period of the lease deed but charges & expenses for lease(s) to the samePromoter / maintenance agency / company. However, including but not limited to stamp duty and registration charge, shall be borne by the Allottee / proposed lessee as may be negotiated and agreed to. (d) The unit shall be deemed to have been legally possessed by the Allottee. (e) In in the event of non-payment or delayed payment of such charges by the lessee(s), the ultimate responsibility of the rent or any other dues by payment of the Lessee or same shall be that of the delayed pay- ments, the Allottee shall have the remedies available to it as may be stipulated in the said lease agreementAllottee. 16.13. It is clarified that the scheme under which the units are being agreed to be sold in terms of this clause (funder leasing arrangement) The Developer shall at all times have the right of leasing of is specifically designed for earning rental income from the Unit and such decision as to the choice of the tenant and the lease rent shall be binding on the Allottee. This clause is a power of attorney executed not for its personal physical occupation or use by the Allottee as donor with the Developer as donee / attorney and the Allottee hereby ratifies and confirms all acts deeds and things to be done by the Developer as its attorneyallottee’s. However, by virtue of the presents above . (g) That the Allottee permits the Developer to remit to it the said rent after deducting the expens- es / costs incurred by it (Developer) on a pro rata basis, on the said leasing arrangement including costs on collection of rents from the lease and subsequient payment of rentals to the Allottee on an ongoing basis. Such costs presently workout to Rs 7/- per sq ft per annum of leased super area. In addition, the Allottee also undertakes to pay service tax and other levies as may be applicable from time to time on the said rentals received by it through the Developer. The dues shall be deducted by the Developer in one lump sum from the first rent payable to the Allottee in the financial year. (h) The Allottee shall not without the written consent of the Developer (such consent not being unreasonably withheld) be entitled to take the case any allottee seeks physical possession including self occupation of his Unit upon its vacation by a lessee or at any time when a lease is under negotiation with a prospective lessee, then in such a case the unit. In case an Allottee is allottee hereby gives his unequivocal and unconditional acceptance to being given possession of his unitand conveyed either the same Unit allotted to him earlier or an alternative Unit of equal measurement anywhere in the same building or project and has agreed that under such circumstances he shall without protest, object or demur accept such possession alternative Unit for commercial space which for all practical purposes ,specifically with regards to the applicability of clauses of this agreement and the alternate space/Unit shall be given deemed as the original space/Unit as mentioned in the present Agreement The Allottee has agreed to enter into this Agreement in respect of the said Unit after clearly understanding the pros and cons of this scheme and shall not raise any objection whatsoever to the same later on. Physical possession, when given, will be in the same state in which, the previous occupant / Lessee had occupant/ lessee has vacated the space viz. ‘Unit i. e. on 'as is where is is’ basis’. Further, it is clearly understood by the Allottee that that, upon such possession being given given, the DeveloperPromoter's/ Maintenance Company’s responsibility or of providing services such as air-conditioning, fire fighting fighting, and electrical supply shall be limited to catering to modules of units having area 3000 sq ft 5000 sq. feet each and it shall be the responsibility of the Allottees allottee’s to further channelize the said services so as to cater to their respective modules provided units. Provided that due the Allottee shall be given possession of the Unit (or alternate Unit in lieu thereof) subject to technical reasonshis sole responsibility to procuring all applicable Fire related approvals from concerned Departments and complying with all requirements in this regards as may be contained in applicable Government regulations, physical sub- division of floor spaces into independent units admeasuring 3000 sq ft or less shall not be permittedbuilding codes and bye-laws, legal statutes ,regulations, rules etc. 32.2 Return on completion 16.14. The Allottee shall be entitled to sell the said Unit only upon obtaining a NOC from the Promoter subject to the new assignee/ transferee agreeing to abide by the terms and conditions of this Builder Allottee Agreement, Maintenance Agreement and the Lease Agreement in force. 16.15. Rental Security Deposit that may be provided by the lessee in pursuance to the terms of any lease agreement executed by it with the Promoter in respect of the project and letting-out of unit (a) That said Unit will be passed on the completion of the project, the unit would be let-out by the Developer to a bonafide lessee at a minimum rental of Rs. per sq. ft. per month less tax deducted at source. In the event of the Developer being unable to finalize the leasing arrangements, it shall pay the minimum rent at Rs. per sq. ft. per month to the Allottee as Minimum Guaranteed Rent which shall be refunded in whole by the Allottee immediately and without any demur or protest upon expiry/ determination/termination of the lease. In case any part of such Security Deposit is adjusted by the Promoter against any type of monetary default by the Lessee on rentals or otherwise, the balance amount of such security Deposit, if any , shall be refunded by the Allottee to the Promoter immediately and without any demur or protest upon expiry/ determination/termination of the lease. Notwithstanding anything mentioned hereinabove, such refund of Security Deposit shall be unconditionally and unequivocally made by the Allottee to the Promoter within 15 days of intimation of such expiry/ determination/termination of the lease, failing which the Allottee shall be liable to pay 18 % interest per annum on such non-refunded Security Deposit amounts for the first 36 months after period such Security Deposit Amount remains retained and not refunded by the date of comple- tion Allottee to the Promoter. 16.16. Till monthly maintenance & other charges in respect of the project or till said Unit are paid by the lessee of the Said Unit, the same will not be billed by the Promoter/ Maintenance Company/ Agency to the Allottee. Monthly Maintenance Charges shall become payable by the Allottee to the Promoter/ Maintenance Company/ Agency from the date the said unit Unit falls vacant either due to expiry of the lease or its earlier termination/ determination or its premature vacation, legal or illegal, by any lessee(s). Payment/ Deposit of IFMSD (as stipulated in as stipulated in separate Maintenance Agreement, terms and conditions of which is put on leaseshared with Allottee and confirmed by Allottee to be understood and agreed upon) is the responsibility of the Allottee. However, whichever is earlier. If on account if in terms of any reasonlease document/ maintenance agreement, the lease rent achieved is less than Rs. per sq. ft. per month of super area, then lessee has provided the Developer shall return IFMSD to the AllotteePromoter/ Maintenance Company/ Agency, a compensation calcu- lated at Rs.________________________ (Rupees __________________ (b) If the lease rent exceeds Rs. per sq. ft. super area per monththen, the Allottee shall will not be required to pay additional sale consideration provide the same to the Promoter/ Maintenance Company/ Agency till the said Unit continues to be on lease. IFMSD shall become payable by the Allottee to the Promoter/ Maintenance Company/ Agency immediately from the date the said Unit falls vacant either due to expiry of the lease or its earlier termination/ determination or for the enhanced rental achieved over and above the committed rentalany other reason. (c) Such additional consideration shall be calculated at 50% of Rs. (Rupees