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Parent Guarantee Lease Agreement Template for Netherlands

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Key Requirements PROMPT example:

Parent Guarantee Lease Agreement

"I need a Parent Guarantee Lease Agreement under Dutch law for our tech subsidiary leasing a data center in Amsterdam, with our US parent company as guarantor, starting March 2025, with specific provisions for step-in rights and technical infrastructure obligations."

Document background
The Parent Guarantee Lease Agreement is a critical document used in commercial leasing transactions where additional security is required beyond the tenant's own covenant. This document is particularly relevant in situations where a subsidiary company is the tenant, but the landlord requires the financial backing of the parent company. Under Dutch law, this agreement combines elements of lease law (huurrecht) and guarantee law (borgtochtrecht), creating a legally binding commitment from the parent company to fulfill the tenant's obligations if the tenant defaults. The document is commonly used in high-value commercial leases, corporate expansions, or when dealing with newly established subsidiaries. The Parent Guarantee Lease Agreement typically includes detailed provisions about the scope of guaranteed obligations, enforcement mechanisms, and compliance with Dutch legal requirements regarding both corporate guarantees and property leasing.
Suggested Sections

1. Parties: Identification of the Landlord, Tenant, and Parent Company Guarantor, including full legal names, registration details, and addresses

2. Background: Context of the lease agreement and the reason for the parent guarantee, including reference to the main lease agreement

3. Definitions: Defined terms used throughout the agreement, including 'Guaranteed Obligations', 'Lease Agreement', 'Guarantee Period'

4. Scope of Guarantee: Detailed description of the obligations being guaranteed, including rent, service charges, and other tenant obligations

5. Nature of Guarantee: Specification that this is an independent, continuing, and irrevocable guarantee, including the legal basis under Dutch law

6. Guarantor's Obligations: Specific commitments of the parent company, including payment obligations and performance guarantees

7. Duration and Extent: Term of the guarantee and any limitations on the guaranteed amount

8. Enforcement and Claims: Process for making claims under the guarantee and enforcement procedures

9. Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial condition

10. Payment Mechanics: Details of how and when payments must be made under the guarantee

11. Notices: Communication requirements and contact details for all parties

12. Governing Law and Jurisdiction: Confirmation of Dutch law application and jurisdiction of Dutch courts

Optional Sections

1. Tax Provisions: Specific provisions regarding tax liabilities and VAT, required if the lease involves taxable supplies

2. Financial Covenants: Requirements for guarantor to maintain certain financial metrics, useful for long-term or high-value leases

3. Step-In Rights: Landlord's rights to require guarantor to take over the lease, relevant for critical commercial properties

4. Corporate Requirements: Specific provisions for corporate governance and shareholder approval, needed for listed or regulated guarantors

5. Currency Provisions: Required if lease payments are in a currency different from guarantor's primary operating currency

6. Information Rights: Landlord's rights to receive financial information from guarantor, useful for long-term commitments

Suggested Schedules

1. Schedule 1 - The Property: Detailed description of the leased property, including address and cadastral details

2. Schedule 2 - The Lease: Copy or summary of the main lease agreement terms being guaranteed

3. Schedule 3 - Guaranteed Obligations: Itemized list of all obligations covered by the guarantee

4. Schedule 4 - Form of Demand: Template for making claims under the guarantee

5. Schedule 5 - Corporate Authorizations: Copies of relevant board resolutions and powers of attorney

6. Appendix A - Financial Reporting Requirements: Format and frequency of financial reports required from guarantor

7. Appendix B - Payment Instructions: Bank account details and payment procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Commercial Real Estate

Retail

Industrial & Manufacturing

Office Space & Commercial Property

Logistics & Warehousing

Hospitality & Tourism

Healthcare

Education

Technology & Data Centers

Financial Services

Relevant Teams

Legal

Real Estate

Finance

Risk Management

Treasury

Facilities Management

Corporate Development

Operations

Commercial

Compliance

Relevant Roles

Chief Legal Officer

Real Estate Director

Corporate Counsel

Property Manager

Financial Director

Chief Financial Officer

Legal Counsel

Lease Administrator

Risk Manager

Corporate Real Estate Manager

Treasury Manager

Facilities Manager

Commercial Director

Contract Manager

Company Secretary

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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