Sample Commercial Lease This lease is made between, ________________________ , herein called the Lessors, and ___________________________ herein called the Lessee. The Lessee hereby offers to Lease from the Lessor, part of (refer to attached floor plan) the Premises, situated at ________________, in ____________ Township, Porter County, State of Indiana, Zip:___________, upon the following TERMS and CONDITIONS. 1. Area to be Leased: a) ____________ sq. ft. in building #1 b) ____________ sq. ft. of Office in building #1 2. Term and Rent. Lessor demised the above premises for an initial fixed term of ____ years, commencing on Date:_____________, and terminating on Date:______________, at an annual rental as set out in the attached schedule of rates. The rents will be payable in equal monthly installments, in advance, on the first day of each month for that months rental, during the term of this Lease. All rental payments shall be automatically deposited in an account of the Lessors choice in accordance with an agreement with the Lessee's bank, made at the time of signing this document. The Lease will be, a Triple Net Lease. 3. Use. The Lessee shall occupy and use the premises for the storage and distribution of manufactured product consistent with the Lessee's lawful business operation. The Lessee must obtain permission from the Lessor, for any change in use from that identified in this agreement. Any costs associated with the Lessee's use of the building, including, but not limited to, structural, specialist fire, emission, spillage protection or insurance, will be the sole responsibility of the Lessee. In the event that the Lessee's occupancy or use of the premises causes additional charges or liability, or requires additional, permits or inspections, or alterations to the building then, and in that event Lessor shall, in addition to all other rights set out herein, be reimbursed and/or compensated by Lessee for all such additional charges or liability, or additional licenses, permits or inspections, or alterations or any other expenditure so caused. Should Lessee produce any noxious or toxic fumes or odors or cause or create a hazardous condition then the Lessor may consider such to be a breach of this lease. 4. Access provisions. The Lessee agrees to allow the Lessor access to the loading dock for the purpose of moving his (the Lessor) machinery into the building, upon completion of his fitout and also agrees to allow the Lessors staff access to the bathrooms (in the office area) until the sewer extension is completed. Access to the Lessors's Building Maintenance area will be through the overhead and man doors on the East wall of the lower level. 5 Environmental and Noise Pollution. The Lessee agrees to operate his/her business within the Township, County and/or State regulatory guidelines, governing Environmental and Noise Pollution and not exceed emission levels for odor, liquid or noise as set out in these regulations. In the event of any toxic spill occurring in the area occupied by the lessee, it will be the express responsibility of the lessee to clean up and remediate any affected area. All costs and liability will be the responsibility of the lessee. Lessee shall comply with all applicable laws, regulations or ordinances that govern Lessee's use of the premises and his/her business and all necessary permits and licenses shall be obtained and kept current. Lessee may not engage in any illegal activity nor operate in violation of any regulation, order, ordinance or law. 6. Care and Maintenance of Premises. Lessee acknowledges that the premises are in good order and repair, unless otherwise indicated herein. The Lessee shall, at his/her own expense and at all times, maintain the premises in a sound and safe condition, including all, plate glass, electrical wiring, plumbing, heating installations, floors, ceiling, internal walls, insulation, external fencing and any other system or equipment upon the premises, and shall surrrender the same at termination hereof, in as sound a condition as received, normal wear and tear excepted. Lessee shall be responsible for all repairs required, excepting the roof, exterior walls and structural foundations. Lessee, at his/her cost, will be responsible for providing fire suppression equipment consistant with the provisions of the County and State fire codes. 7. Common Area Maintenance. The Lessee will share in the cost of Common Area Maintenance based on a pro-rata cost of leased space. (i.e. Leased space 38% of Total Building /C.A.M. cost 38% of verified contractors bills). Maintenance will usually cover, Grass mowing and Garden maintenance, Snow Removal, car parking space maintenance, external security lighting, well and sewer or any other areas identified by the Lessor and agreed by the Lessee. 8. Alterations. Lessee shall not, without first obtaining the written consent of Lessor, make any alterations, additions or improvements, in, about or to the premises. 9. Ordinances and Statutes. Lessee shall comply with all Statutes, Ordinances and Requirements of all Municipal, State and Federal Authorities now in force or which may hereafter be in force, pertaining to the Premises, occasioned by or affecting the use thereof by the Lessee. 10. Assignment and Subletting. Lessee shall not assign this lease or sublet any portion of the premises without the prior written consent of the Lessor, which shall not be unreasonably withheld. Any such assignments or subletting without prior written consent will be void and, at the option of the Lessor, may terminate this Lease. 11. Utilities. All applications and connections for necessary utility services on the demised premises, shall be made in the name of the Lessee only, and the Lessee shall be solely liable for the charges as they become due, including those for water, gas, electricity, and telephone services. The Lessee will be responsible for the cost of utilities to the Building maintenance area (they are on a joint service with the office area). The sewer charges will be paid for by the Lessor. 12. Entry and Inspection. Lessee shall permit Lessor or Lessor's agent to enter upon the premises at reasonable times and upon reasonable notice, for the purpose of inspecting the same. Lessee also consents and allows any inspection of the premises by any authorized insurance agent or officer of any governmental agency or licensing authority. Lessee will permit Lessor at any time within sixty (60) days prior to the expiration of this lease, to erect upon the premises any usual "For Lease" signs and permit persons desiring to lease the premises to inspect same. 13. Possession. The Lessor agrees to give the Lessee unrestricted access to the premises by EXACT TIME AND DAY:__________________. Lessee may terminate this lease if entry is not given by EXACT TIME AND DAY. The building and premises must be clean and free of all debris. 14. Indemnification of Lessor. Lessor shall not be liable for any damage or injury to the Lessee, or any other persons or to any property, occurring on the demised premises or any part thereof and the Lessee agrees to hold Lessor harmless from any claim for damages, which shall include the obligation to defend and or pay attorney fees, no matter how caused. 15. Insurance. During the term of the lease, Lessee shall, at its sole cost and expense, obtain, keep and maintain the following insurance: $2,000,000 Bodily Injury & Property Damage Aggregate Limit. $1,000,000 Bodily Injury & Property Damage per Occurrence. $ 5,000 Medical payments to others. Lessee will provide the Lessor with a Certificate of Insurance showing the Lessor as additional insured. The Certificate shall provide for a 30 day written notice to Lessor in the event of cancellation or material change of coverage. To the maximum extent permitted by insurance policies which may be owned by Lessor or Lessee, Lessee and Lessor, for the benefit of each other, waive any and all rights of subrogation which might otherwise exist. 16. Eminent Domain. If the premises or any part of thereof or any estate therein, or any other part of the building materially affecting Lessee's use of the premises, shall be taken by Eminent Domain, this lease shall terminate on the date when title vests pursuant to such taking. The rent, and any additional rent, shall be apportioned as of the termination date, and any rent paid for any period beyond that date shall be repaid to the Lessee. The Lessee shall not be entitled to any part of the award for such taking or any payment in lieu thereof, but Lessee may file for any taking of fixtures and improvements owned by the Lessee, and for moving expenses. 17. Destruction of Premises. In the event of a partial or total destruction of the premises during the term hereof, from any cause, Lessor, shall forthwith repair the same, provided that such repairs can be made within (60) days under existing governmental laws and regulations, but such partial destruction shall not terminate this lease, except that Lessee shall be entitled to a proportionate reduction of rent while such repairs are being made, based upon the extent to which the making of such repairs shall interfere with the business of Lessee on the premises. If such repairs cannot be made within said sixty (60) days, Lessor, at his option, may make the same within a reasonable time, this lease continuing in effect with the rent proportionately abated as aforesaid, and in the event that Lessor shall not elect to make such repairs which cannot be made within sixty (60) days, this Lease may be terminated at the option of either party. In the event that the building in which the demised premises may be situated is destroyed to an extent of not less than one-third of the replacement costs thereof, Lessor may elect to terminate this lease whether the demised premises be injured or not. A total destruction of the building in which the premises may be situated shall terminate this lease. 18. Acts of Default by Lessee: The occurrance of any one of the following shall constitute a default by Lessee under this lease; a) Lessee fails to pay any installment of Monthly Base rental or any other monetary obligation hereunder within ten (10) days after receipt of written notice that such payment is due; b) Lessee fails to comply with any other term, provision, condition or covenant of this lease and such failure continues for a period of 30 days after written notice from the Lessor. c) Lessee or any other tenants, hinder or prevent occupants from entering the premises and/or carrying out their lawful business. Remedies: Upon the occurrence of a default under this Lease, Lessor shall have the option, upon thirty (30) days notice, and in addition to and not in limitation of any other remedies permitted by law, equity, or this lease, to terminate this Lease, or without terminating the Lease or Lessee's obligations hereunder, to terminate the Lessee's rights to possession. In the event, Lessor may deny the use of the Premises to Lessee. Any payment not received in a timely fashion (as laid out in this contract) shall bear a late charge, equal to five percent (5%) of such payment. 19. Security Deposit. Lessee shall deposit with Lessor on the signing of this lease, the sum of ($_________________) _____________________________________ Dollars as security deposit for the performance of Lessee's obligations under this lease, including without limitation, the surrender of possession of the premises to Lessor as herein provided. If Lessor applies any part of the deposit to cure any default of Lessee, Lessee shall on demand deposit with Lessor the amount so applied so that Lessor shall have the full deposit on hand at all times during the term of this lease. Lessee shall pay the first (1) months rent in advance which totals ($_______________)__________________Dollars plus the security deposit of ($_______________)________________________________Dollars which totals the sum of ($__________ )_____________________________Dollars due upon the signing of this lease. 20. Attorney's Fees. In case suit should be brought for recovery of the premises, or for any sum due hereunder, or because of any act which may arise out of the possession of the premises, by either party, the prevailing party shall be entitled to all costs incurred in connection with such action, including a reasonable attorney's fee. 21. Notices. Any notice which either party may, or is required to give, shall be given by mailing the same, postage prepaid, to Lessee at the premises, of Lessor at the address shown below, or at such other places as may be designated by the parties from time to time. Lessors Address for Notice: 212 E. Lincolnway Valparaiso, IN 46383 22. Heirs, Assigns, Successors. This lease is binding upon and inures to the benefit of the heirs, assigns and successors in interest to the parties. 23. Option to Renew. Provided that Lessee is not in default in the performance of this lease, Lessee shall have the option to renew the lease for an additional term of 2 years, commencing at the expiration of the initial lease term. All of the terms and conditions of the lease shall apply during the renewal term and the monthly rent shall be the subject of review by both parties prior to renewal. The option shall be exercised by written notice given to Lessor not less than 60 days prior to the expiration of the initial lease term. If notice is not given in the manner provided herein within the time specified, this option shall expire. 24. Subordination. This lease is and shall be subordinated to all existing and future liens and encumbrances against the property. 25. Maintenance of Utilities -Temporary Vacation. If Lessee should temporarily vacate the leased premises, Lessee shall maintain all utilities necessary for proper maintenance of the building. 26. Building Condition. Lessee accepts the building in "AS IS" condition after a satisfactory inspection accompanied by the Lessor. 27. Outside Storage. No outside storage is permitted unless approved in writing by the Lessor. 28. Zoning. Leased property is Zoned I-2. 29. Entire Agreement. The foregoing constitutes the entire agreement between the parties and may be modified only by a writing signed by both parties. The following exhibits, if any, have been made a part of this lease before the parties' execution hereof: Signed this ___ day of_________________. By _____________________________________________________________ Lessor's ACKNOWLEDGMENT State of ________________ County of _______________ Before me, the undersigned, a Notary Public, in and for said County and State, this ___ day of ___________________, personally appeared for _____________________, and acknowledged the execution of the foregoing Lease. In witness whereof, I have hereunto subscribed my name and affixed my official seal. _______________________________ Notary Public, ____________________ My Commission Expires__________ Resident of_____________ County, _________ Signed this _____ day of _______________. By______________________________________________________________ Lessee typed or printed: ______________________________ ACKNOWLEDGMENT State of ________________ County of _______________ Before me, the undersigned, a Notary Public, in and for said County and State, this __ day of ________________, personally appeared for ______________________and acknowledged the execution of the foregoing Lease. In witness whereof, I have hereunto subscribed my name and affixed my official seal. _______________________________ Notary Public, ____________________ My Commission Expires_____________ Resident of __________County,__________