Commercial Lease AgreementCommercial Lease Agreement
This Commercial Lease Agreement ("Lease") is made and effective
[Date], by and between [Landlord] ("Landlord") and [Tenant] ("Te nant").
Landlord is the owner of land and improvements commonly known and
numbered as [Address of Building] and legally described as follows
(the "Building"): [Legal Description of Building]
Landlord makes available for lease a portion of the Building designated
as [Suite or Other Number of Leased Building] (the "Leased Premises").
Landlord desires to lease the Leased Premises to Tenant, and Tenant
desires to lease the Leased Premises from Landlord for the term, at the
rental and upon the covenants, conditions and provisions herein set
THEREFORE, in consideration of the mutual promises herein, contained
and other good and valuable consideration, it is agreed:
A. Landlord hereby leases the Leased Premises to Tenant, and Tenant
hereby leases the same from Landlord, for an "Initial Term" beginning
[Start Date] and ending [End Date]. Landlord shall use its best efforts
to give Tenant possession as nearly as possible at the beginning of the
Lease term. If Landlord is unable to timely provide the Leased Premises,
rent shall abate for the period of delay. Tenant shal l make no other
claim against Landlord for any such delay.
B. Tenant may renew the Lease for one extended term of [Renewal Term].
Tenant shall exercise such renewal option, if at all, by giving written
notice to Landlord not less than ninety (90) days prior to the
expiration of the Initial Term. The renewal term shall be at the rental
set forth below and otherwise upon the same convenants, conditions and
provisions as provided in this Lease.
A. Tenant shall pay to Landlord during the Initial Term rental of
[Annual Rent] per year, payable in installments of [Monthly Rental
Amount] per month. Eac h installment payment shall be due in advance on
the first day of each calendar month during the lease term to Landlord
at [Landlord's Designated Payment Address] or at such other place
designated by written notice from Landlord or Tenant. The rental payment
amount for any partial calendar months included in the lease term shall
be prorated on a daily basis. Tenant shall also pay to Landlord a
"Security Deposit" in the amount of [Security Depo sit].
B. The rental for any renewal lease term, if created as permitted under
this Lease, shall be [Annual Rent in Renewal Term] per year payable in
installments of [Monthly Rental Amount] per month.
[Permitted Use] Notwithstanding the forgoing, Tenant shall not use the
Leased Premises for the purposes of storing, manufacturing or selling
any explosives, flammables or other inherently dang erous substance,
chemical, thing or device.
4. Sublease and Assignment.
Tenant shall have the right without Landlord's consent, to assign this
Lease to a corporation with which Tenant may merge or consolidate, to
any subsidiary of Tenant, to any corporation under common control with
Tenant, or to a p urchaser of substantially all of Tenant's assets.
Except as set forth above, Tenant shall not sublease all or any part of
the Leased Premises, or assign this Lease in whole or in part without
Landlord's consent, such consent not to be unreasonably withhe ld or
During the Lease term, Tenant shall make, at Tenant's expense, all
necessary repairs to the Leased Premises. Repairs shall include such
items as routine repairs of floors, walls, ceilings, and other parts of
the Leased Premises damaged or worn through normal occupancy, except for
major mechanical systems or the roof, subject to the obligations of the
parties otherwise set forth in this Lease.
6. Alterations and Improvements.
Tenant, at Tenant's expense, shall have the right following Landlord's
consent to remodel, redecorate, and make additions, improvements and
replacements of and to all or any part of the Leased Premises from time
to time as Tenant may deem desirable, provided the same are made in a
workmanlike manner and utilizing good quality materials. Tenant shall
have the right to place and install personal property, trade fixtures,
equipment and other temporary installations in and upon the Leased
Premises, and fasten the same to the premises. All personal property,
equipment, machinery, trade fixtures and temporary installations,
whether acquired by Tenant at the commencement of the Lease term or
placed or installed on the Leased Premises by Tenant thereafter, shall
remain Tenant's property free and clear of any claim by Landlord. Tenant
shall have the right to remove the same at any time during the term of
this Lease provided that all damage to the Leased Premises caused by
such removal shall be repaired by Tenant at Tenant's expense.
7. Property Taxes.
Landlord shall pay, prior to delinquency, all general real estate taxes
and installments of special assessments coming due during the Lease term
on the Leased Premises, and all personal property taxes with respect to
Landlord's p ersonal property, if any, on the Leased Premises. Tenant
shall be responsible for paying all personal property taxes with respect
to Tenant's personal property at the Leased Premises.
A. If the Leased Premises or any other party of the Building is damaged
by fire or other casualty resulting from any act or negligence of Tenant
or any of Tenant's agents, employees or invitees, rent shall not be
diminished or a bated while such damages are under repair, and Tenant
shall be responsible for the costs of repair not covered by insurance.
B. Landlord shall maintain fire and extended coverage insurance on the
Building and the Leased Premises in such amounts as Landlord shall deem
appropriate. Tenant shall be responsible, at its expense, for fire and
extended coverage in surance on all of its personal property, including
removable trade fixtures, located in the Leased Premises.
C. Tenant and Landlord shall, each at its own expense, maintain a policy
or policies of comprehensive general liability insurance with respect
to the respective activities of each in the Building with the premiums
thereon fully paid on or before due date, issued by and binding upon
some insurance company approved by Landlord, such insurance to afford
minimum protection of not less than $1,000,000 combined single limit
coverage of bodily injury, property damage or combination thereof.
Landlord shall be listed as an additional insured on Tenant's policy or
policies of comprehensive general liability insurance, and Tenant shall
provide Landlord with current Certificates of Insurance evidencing
Tenant's compliance with this Paragraph. Te nant shall obtain the
agreement of Tenant's insurers to notify Landlord that a policy is due
to expire at least (10) days prior to such expiration. Landlord shall
not be required to maintain insurance against thefts within the Leased
Premises or the Buil ding.
Tenant shall pay all charges for water, sewer, gas, electricity,
telephone and other services and utilities used by Tenant on the Leased
Premises during the term of this Lease unless otherwise expressly agreed
in writing by L andlord. In the event that any utility or service
provided to the Leased Premises is not separately metered, Landlord
shall pay the amount due and separately invoice Tenant for Tenant's pro
rata share of the charges. Tenant shall pay such amounts within fifteen
(15) days of invoice. Tenant acknowledges that the Leased Premises are
designed to provide standard office use electrical facilities and
standard office lighting. Tenant shall not use any equipment or devices
that utilizes excessive electrical energy or which may, in Landlord's
reasonable opinion, overload the wiring or interfere with electrical
services to other tenants.
Following Landlord's consent, Tenant shall have the right to place on
the Leased Premises, at locations selected by Tenant, any signs which
are permitted by applicable zoning ordinances and private restrictions.
Landlord may ref use consent to any proposed signage that is in
Landlord's opinion too large, deceptive, unattractive or otherwise
inconsistent with or inappropriate to the Leased Premises or use of any
other tenant. Landlord shall assist and cooperate with Tenant in obt
aining any necessary permission from governmental authorities or
adjoining owners and occupants for Tenant to place or construct the
foregoing signs. Tenant shall repair all damage to the Leased Premises
resulting from the removal of signs installed by T enant.
Landlord shall have the right to enter upon the Leased Premises at
reasonable hours to inspect the same, provided Landlord shall not
thereby unreasonably interfere with Tenant's business on the Leased
During the term of this Lease, Tenant shall have the non-exclusive use
in common with Landlord, other tenants of the Building, their guests and
invitees, of the non-reserved common automobile parking areas, driveways,
and footway s, subject to rules and regulations for the use thereof as
prescribed from time to time by Landlord. Landlord reserves the right to
designate parking areas within the Building or in reasonable proximity
thereto, for Tenant and Tenant's agents and employe es. Tenant shall
provide Landlord with a list of all license numbers for the cars owned
by Tenant, its agents and employees. Separated structured parking, if
any, located about the Building is reserved for tenants of the Building
who rent such parking s paces. Tenant hereby leases from Landlord
[Number of Parking Spaces] spaces in such structural parking area, such spaces to be on a first come-first served basis. In consideration of the leasing to Tenant of such spac es, Tenant shall pay a monthly rental of [Parking Space Rental] per space throughout the term of the Lease. Such rental shall be due and payable each month without demand at the time herein set for the payment of other monthly rentals, in addition to such other rentals.
13. Building Rules.
Tenant will comply with the rules of the Building adopted and altered by
Landlord from time to time and will cause all of its agents, employees,
invitees and visitors to do so; all changes to such rules will be sent
by Landl ord to Tenant in writing. The initial rules for the Building
are attached hereto as Exhibit "A" and incorporated herein for all
14. Damage and Destruction.
Subject to Section 8 A. above, if the Leased Premises or any part
thereof or any appurtenance thereto is so damaged by fire, casualty
or structural defects that the same cannot be used for Tenant's purposes,
then Tenant shall hav e the right within ninety (90) days following
damage to elect by notice to Landlord to terminate this Lease as of the
date of such damage. In the event of minor damage to any part of the
Leased Premises, and if such damage does not render the Leased Prem ises
unusable for Tenant's purposes, Landlord shall promptly repair such
damage at the cost of the Landlord. In making the repairs called for in
this paragraph, Landlord shall not be liable for any delays resulting
from strikes, governmental restrictions , inability to obtain necessary
materials or labor or other matters which are beyond the reasonable
control of Landlord. Tenant shall be relieved from paying rent and other
charges during any portion of the Lease term that the Leased Premises
are inopera ble or unfit for occupancy, or use, in whole or in part, for
Tenant's purposes. Rentals and other charges paid in advance for any
such periods shall be credited on the next ensuing payments, if any, but
if no further payments are to be made, any such adv ance payments shall
be refunded to Tenant. The provisions of this paragraph extend not only
to the matters aforesaid, but also to any occurrence which is beyond
Tenant's reasonable control and which renders the Leased Premises, or
any appurtenance theret o, inoperable or unfit for occupancy or use, in
whole or in part, for Tenant's purposes.
If default shall at any time be made by Tenant in the payment of rent
when due to Landlord as herein provided, and if said default shall
continue for fifteen (15) days after written notice thereof shall have
been given to Tenant by Landlord, or if default shall be made in any of
the other covenants or conditions to be kept, observed and performed by
Tenant, and such default shall continue for thirty (30) days after
notice thereof in writing to Tenant by Landlord without correction
thereof then having been commenced and thereafter diligently prosecuted,
Landlord may declare the term of this Lease ended and terminated by
giving Tenant written notice of such intention, and if possession of the
Leased Premises is not surrendered, Lan dlord may reenter said premises.
Landlord shall have, in addition to the remedy above provided, any other
right or remedy available to Landlord on account of any Tenant default,
either in law or equity. Landlord shall use reasonable efforts to
mitigate its damages.
16. Quiet Possession.
Landlord covenants and warrants that upon performance by Tenant of its
obligations hereunder, Landlord will keep and maintain Tenant in
exclusive, quiet, peaceable and undisturbed and uninterrupted possession
of the Leased Premis es during the term of this Lease.
If any legally, constituted authority condemns the Building or such
part thereof which shall make the Leased Premises unsuitable for
leasing, this Lease shall cease when the public authority takes
possession, and Landlord and Ten ant shall account for rental as of that
date. Such termination shall be without prejudice to the rights of
either party to recover compensation from the condemning authority for
any loss or damage caused by the condemnation. Neither party shall have
any rights in or to any award made to the other by the condemning
Tenant accepts this Lease subject and subordinate to any mortgage, deed
of trust or other lien presently existing or hereafter arising upon the
Leased Premises, or upon the Building and to any renewals, refinancing
and extens ions thereof, but Tenant agrees that any such mortgagee shall
have the right at any time to subordinate such mortgage, deed of trust
or other lien to this Lease on such terms and subject to such conditions
as such mortgagee may deem appropriate in its di scretion. Landlord is
hereby irrevocably vested with full power and authority to subordinate
this Lease to any mortgage, deed of trust or other lien now existing or
hereafter placed upon the Leased Premises of the Building, and Tenant
agrees upon demand to execute such further instruments subordinating
this Lease or attorning to the holder of any such liens as Landlord
may request. In the event that Tenant should fail to execute any
instrument of subordination herein require d to be executed by Tenant
promptly as requested, Tenant hereby irrevocably constitutes Landlord
as its attorney-in-fact to execute such instrument in Tenant's name,
place and stead, it being agreed that such power is one coupled with
an interest. Tenan t agrees that it will from time to time upon request
by Landlord execute and deliver to such persons as Landlord shall
request a statement in recordable form certifying that this Lease is
unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as so
modified), stating the dates to which rent and other charges
payable under this Lease have been paid, stating that Landlord
is not in default hereunder (or if Tenant alleges a default stating
the nature of such alleged default) and further stating such other
matters as Landlord shall reasonably require.
19. Security Deposit.
The Security Deposit shall be held by Landlord without liability
for interest and as security for the performance by Tenant of
Tenant's covenants and obligations under this Lease, it being expressly
understood that the Security D eposit shall not be considered an
advance payment of rental or a measure of Landlord's damages in case
of default by Tenant. Unless otherwise provided by mandatory non-waivable
law or regulation, Landlord may commingle the Security Deposit with
Landlord' s other funds. Landlord may, from time to time, without
prejudice to any other remedy, use the Security Deposit to the extent
necessary to make good any arrearages of rent or to satisfy any other
covenant or obligation of Tenant hereunder. Following any such
application of the Security Deposit, Tenant shall pay to Landlord on
demand the amount so applied in order to restore the Security Deposit
to its original amount. If Tenant is not in default at the termination
of this Lease, the balance of the Secu rity Deposit remaining after any
such application shall be returned by Landlord to Tenant. If Landlord
transfers its interest in the Premises during the term of this Lease,
Landlord may assign the Security Deposit to the transferee and
thereafter shall h ave no further liability for the return of such
Any notice required or permitted under this Lease shall be deemed
sufficiently given or served if sent by United States certified mail,
return receipt requested, addressed as follows:
If to Landlord to:
If to Tenant to:
Landlord and Tenant shall each have the right from time to time to
change the place notice is to be given under this paragraph by written
notice thereof to the other party.
Tenant represents that Tenant was not shown the Premises by any real
estate broker or agent and that Tenant has not otherwise engaged in,
any activity which could form the basis for a claim for real estate
commission, brokerage f ee, finder's fee or other similar charge, in
connection with this Lease.
No waiver of any default of Landlord or Tenant hereunder shall be
implied from any omission to take any action on account of such default
if such default persists or is repeated, and no express waiver shall
affect any default oth er than the default specified in the express
waiver and that only for the time and to the extent therein stated.
One or more waivers by Landlord or Tenant shall not be construed as a
waiver of a subsequent breach of the same covenant, term or condition.
23. Memorandum of Lease.
The parties hereto contemplate that this Lease should not and shall not
be filed for record, but in lieu thereof, at the request of either
party, Landlord and Tenant shall execute a Memorandum of Lease to be
recorded for the purp ose of giving record notice of the appropriate
provisions of this Lease.
The headings used in this Lease are for convenience of the parties only
and shall not be considered in interpreting the meaning of any provision
of this Lease.
The provisions of this Lease shall extend to and be binding upon
Landlord and Tenant and their respective legal representatives,
successors and assigns.
Landlord shall not unreasonably withhold or delay its consent with
respect to any matter for which Landlord's consent is required or
desirable under this Lease.
If there is a default with respect to any of Landlord's covenants,
warranties or representations under this Lease, and if the default
continues more than fifteen (15) days after notice in writing from
Tenant to Landlord specifyin g the default, Tenant may, at its option
and without affecting any other remedy hereunder, cure such default and
deduct the cost thereof from the next accruing installment or
installments of rent payable hereunder until Tenant shall have been
fully reimbu rsed for such expenditures, together with interest thereon
at a rate equal to the lessor of twelve percent (12%) per annum or the
then highest lawful rate. If this Lease terminates prior to Tenant's
receiving full reimbursement, Landlord shall pay the un reimbursed
balance plus accrued interest to Tenant on demand.
28. Compliance with Law.
Tenant shall comply with all laws, orders, ordinances and other public
requirements now or hereafter pertaining to Tenant's use of the Leased
Premises. Landlord shall comply with all laws, orders, ordinances and
other public req uirements now or hereafter affecting the Leased
29. Final Agreement.
This Agreement terminates and supersedes all prior understandings or
agreements on the subject matter hereof. This Agreement may be modified
only by a further writing that is duly executed by both parties.
IN WITNESS WHEREOF, the parties have executed this Lease as of the day
and year first above written.
[Landlord] Signature Block [Tenant] Signature Block