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Guarantee of Commercial Lease

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					This Guarantee of Commercial Lease sets forth the terms of a personal guarantee by an
individual for a lease entered into by a related business entity. This type of guarantee
provides security to Landlords that the obligations of a commercial tenant will be
performed, regardless of whether or not the commercial tenant remains in business.
This document in its draft form contains numerous of the standard clauses commonly
used in these types of agreements; however, additional language may be added to
allow for customization to ensure the specific terms of the parties’ agreement are
addressed. This form should be used by landlords, management companies, and
commercial tenant guarantors.
                             Guarantee of Commercial Lease
FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in
consideration of the mutual covenants set forth herein and other good and valuable consideration
and as an inducement to _____, [Instruction: Insert Landlord’s name.] as Landlord
(“Landlord”) to enter into a lease agreement with _____, [Instruction: Insert Tenant’s name.]
as Tenant ( “Tenant”), such lease to have a commencement date of _____ [Instruction: Insert
lease commencement date.] (the “Lease”), the undersigned guarantor ( “Guarantor”) hereby
enters into this Guarantee this __ day of __, 20__. [Instruction: Insert guarantee date.] The
Lease is annexed hereto as Exhibit A and is hereby deemed incorporated as is set forth in its
entirety.

1.  Guarantor hereby absolutely and unconditionally guarantees to Landlord, its successors and
   assigns, the prompt and full payments to be made by Tenant under the Lease to the place of
   payment specified in the Lease, and the full performance and observance by Tenant of all the
   other terms, covenants and conditions to be performed and observed by Tenant, for which
   Guarantor shall be jointly and severally liable with Tenant. Guarantor is also responsible for
   any property damage to the leased premises (as defined in the Lease) for which Tenant is
   responsible under the Lease. In the event of Tenant’s breach of the Lease, Guarantor, in its
   sole discretion, will either cure the breach as may be required pursuant to the terms of the
   Lease or compensate Landlord for Landlord’s losses resulting from the breach. Guarantor
   hereby waives any notice on nonobservance, or proof of notice or demand. Guarantor agrees
   that in the event of Tenant’s default under the Lease provisions, Landlord may proceed
   against Guarantor before, after or simultaneously with proceeding against Tenant, and need
   not exhaust its options against Tenant prior to proceeding against Guarantor.
2. This Guarantee shall not be terminated, affected, or impaired in any manner by reason of the
   assertion by Landlord against Tenant of any of the rights or remedies reserved to Landlord
   pursuant to the Lease provisions; the commencement of summary or other proceedings
   against Tenant; the failure of Landlord to enforce any of its rights against Tenant; or the
   granting by Landlord of time extensions to Tenant.
3. Guarantor further covenants and agrees that Guarantor shall be bound by the provisions,
   terms, conditions, restrictions and limitations contained in the Lease which are to be
   observed or performed by Tenant, the same as if Guarantor were named therein as Tenant;
   and this Guarantee shall be absolute and unconditional and shall be in full force and effect
   with respect to any amendment, addition, assignment, sublease, transfer or other modification
   of the Lease whether or not Guarantor shall have knowledge of, shall have been notified of,
   or has agreed or consented to the same, provided, however, that notwithstanding any
   provision to the contrary contained in such amendment, addition, assignment, sublease,
   transfer or other modification, the financial obligations of Guarantor to pay rent and make
   other payments shall not be increased beyond the amounts specified in the Lease without
   Guarantor’s written consent, which may not be unreasonably withheld.

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4. If Landlord is at any time compelled to take action, by legal proceedings or otherwise, to
    enforce or compel compliance with the terms of this Guarantee, Guarantor shall, in addition
    to any other rights or remedies which Landlord may be entitled to hereunder or as a matter of
    law or in equity, pay to Landlord all costs, including reasonable attorneys’ fees incurred or
    expended by Landlord in connection therewith.
5. In the event this Lease is disaffirmed by a trustee in bankruptcy for Tenant, Guarantor agrees
    that it shall, at Landlord’s election, either assume the Lease and perform all of the covenants,
    terms and conditions of Tenant thereunder or enter into a new lease, which said new lease
    shall be in form and substance identical to the Lease.
6. Filing for bankruptcy by Tenant will not diminish Guarantor’s obligations under this
    Guarantee.
7. All duties and obligations of “Guarantor” pursuant to this Guarantee shall be binding upon
    Guarantor’s successors and assigns.
8. This Guarantee shall be governed by and construed in accordance with the laws of the state
    of _____. [Instruction: Insert state.]
9. Guarantor authorizes Landlord to obtain a copy
				
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Description: This Guarantee of Commercial Lease sets forth the terms of a personal guarantee by an individual for a lease entered into by a related business entity. This type of guarantee provides security to Landlords that the obligations of a commercial tenant will be performed, regardless of whether or not the commercial tenant remains in business. This document in its draft form contains numerous of the standard clauses commonly used in these types of agreements; however, additional language may be added to allow for customization to ensure the specific terms of the parties’ agreement are addressed. This form should be used by landlords, management companies, and commercial tenant guarantors.