Secure the lease obligations of a corporate tenant in the Province of Ontario with this unconditional and continuing Guarantee of Commercial Lease.
- The guarantee is given by a principal of the company, such as a shareholder, partner, sole proprietor or some other person with a financial interest in the tenant.
- A guarantee of this type is typically required as an inducement to the lessor ⁄ landlord to sign the lease.
- The guarantor guarantees payment of all rent and other amounts due under the lease, including the payment of legal fees incurred by the landlord in enforcing the terms of the lease.
This Ontario Guarantee of Commercial Lease template is provided in MS Word format, and is fully editable to meet your exact needs.
GUARANTEE OF LEASE THIS GUARANTEE OF LEASE (“Guarantee”) is made as of the _____ day of ______________, _______by the undersigned [INSERT NAME OF GUARANTOR] (“Guarantor”) to and for the benefit of [INSERT NAME OF LANDLORD] (“Landlord”). RECITALS: 1. Landlord, as landlord, and [INSERT NAME OF TENANT] (“Tenant”), as tenant, have entered into, or are about to enter into, a certain lease dated the _____ day of ______________, _______, pursuant to which Tenant leases or will lease from Landlord certain premises located at __________________________ [insert address], [name of city], Ontario, all as more particularly described in the said lease (said lease, as heretofore or hereafter supplemented, amended, restated, renewed, extended, replaced or modified, is hereinafter referred to as the “Lease”). All capitalized terms which are not expressly defined in this Guarantee shall have the same meanings herein as are ascribed to such terms in the Lease. 2. As a condition to its execution and performance of the Lease, Landlord requires that Guarantor execute and deliver this Guarantee of all obligations of Tenant arising and all sums due by Tenant under the Lease. The execution and delivery of this Guarantee by Guarantor is a material inducement to Landlord for the execution and performance of the Lease. 3. Guarantor is a ______________________________________ [describe the relationship between Guarantor and Tenant, e.g. a principal, shareholder, director, etc.] of Tenant and, having a financial interest in Tenant, will be benefited by the Lease. Accordingly, Guarantor has agreed to execute, deliver and perform this Guarantee. NOW THEREFORE the Guarantor (if more than one, both jointly and severally) hereby covenants and agrees to and with the Landlord as follows: (a) The Guarantor unconditionally guarantees to the Landlord the due repayment by the Tenant of the payment of all debts and liabilities of the Tenant to the Landlord and the due performance of all the Tenant’s obligations under the Lease or owing to the Landlord for any reason whatsoever related to the premises or the Lease, including but not limited to the payment of basic rent, minimum rent and additional rent. (b) The Landlord may grant extensions of credit or time or other indulgences, take and give up securities, abstain from taking, perfecting or registering securities, accept compromises, grant releases and discharges, and otherwise deal with the Tenant and other parties (including guarantors and sureties) as the Landlord may see fit, without notice to the Guarantor and without limiting, lessening, terminating, nullifying or invalidating this guarantee or the Guarantor's liabilities or obligations hereunder or the Landlord's rights and remedies as against the Guarantor. (c) The Landlord shall not be bound to exhaust its recourse against the Tenant or other parties or other security or securities it may hold, or any of them before requiring payment of the Guarantor, and the Landlord may enforce the various remedies available to it and may realize upon the various securities or any part thereof in such order as the Landlord may determine. (d) The Guarantor's obligations hereunder shall not be limited or reduced by any loss of or in respect of,
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