The Office Sublease Agreement is utilized when a company or individual holding a primary lease (head tenant) wishes to sublease all or part of their office space to another party in the Philippines. This arrangement is common in commercial real estate when organizations need to optimize their space usage or reduce costs. The document must carefully balance the rights and obligations between the head tenant and subtenant while ensuring compliance with the master lease and Philippine law. It includes essential provisions such as premises description, term, rent, permitted use, and maintenance responsibilities. The agreement must adhere to local regulations, including the Civil Code of the Philippines, local government requirements, and building regulations. It's particularly relevant in business districts where office space flexibility is needed and typically requires the landlord's consent as prescribed by Philippine contract law.
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1. Parties: Identification of the Head Tenant (Sublessor) and Subtenant (Sublessee), including complete legal names, addresses, and business registration details
2. Background: Context of the sublease, including reference to the master lease and confirmation of head tenant's authority to sublease
3. Definitions: Key terms used throughout the agreement including 'Premises', 'Term', 'Master Lease', 'Common Areas', etc.
4. Grant of Sublease: Formal statement of the sublease grant and description of the subleased premises
5. Term: Duration of the sublease, including commencement and expiration dates
6. Rent and Other Charges: Details of rent amount, payment schedule, security deposit, utilities, and other financial obligations
7. Use of Premises: Permitted use of the office space and any restrictions
8. Maintenance and Repairs: Responsibilities for maintaining and repairing the premises
9. Alterations and Improvements: Rules regarding modifications to the premises
10. Insurance and Liability: Required insurance coverage and liability provisions
11. Assignment and Further Subletting: Restrictions on further transfer of rights
12. Default and Remedies: Events of default and corresponding remedies
13. Relationship to Master Lease: Acknowledgment of and compliance with master lease terms
14. Governing Law: Specification of Philippine law as governing law
15. Notices: Process for formal communications between parties
16. Execution: Signature blocks and execution requirements
1. Parking: Include when parking spaces are part of the sublease
2. Signage Rights: Include when subtenant is granted rights to display business signage
3. Fit-out Period: Include when subtenant is allowed time for initial office modifications
4. Building Rules: Include when there are specific building regulations that need to be incorporated
5. Environmental Compliance: Include for premises in eco-friendly buildings or with specific environmental requirements
6. COVID-19 Provisions: Include specific health and safety protocols if necessary
7. Option to Renew: Include if subtenant is granted option to extend the sublease term
8. Right of First Refusal: Include if subtenant is granted priority rights for additional space
1. Floor Plan: Detailed plan showing the subleased premises and common areas
2. Master Lease: Copy or relevant excerpts of the master lease agreement
3. Inventory List: List of furniture, fixtures, and equipment included in the sublease
4. Rent Schedule: Detailed breakdown of rent payments and escalations
5. Building Rules and Regulations: Copy of applicable building rules
6. Form of Bank Guarantee/Security Deposit: Template for required financial security
7. Handover Form: Condition report for premises at commencement
8. Fit-out Guidelines: Technical specifications for permitted office modifications
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