VIEWS: 2,163 PAGES: 25 CATEGORY: Leasing Commercial Real Estate POSTED ON: 1/15/2011
This agreement is for a commercial lease between a landlord and tenant. This long-form template lease agreement is intended to supply standard terms but this commercial lease document can be customized to fit the needs of a landlord or tenant to assure that the terms and conditions accurately reflect the agreement that was negotiated by the parties. This document is useful for landlords or potential tenant companies seeking to enter a lease agreement for commercial property.
This agreement is for a commercial lease between a landlord and tenant. This long- form template lease agreement is intended to supply standard terms but this commercial lease document can be customized to fit the needs of a landlord or tenant to assure that the terms and conditions accurately reflect the agreement that was negotiated by the parties. This document is useful for landlords or potential tenant companies seeking to enter a lease agreement for commercial property. AGREEMENT TO LEASE (COMMERCIAL LEASE) THIS INDENTURE made this _____ day of ____________, 2______ BETWEEN: (Address) (hereinafter called the “LANDLORD”) OF THE FIRST PART - and- (Address) (hereinafter called the “TENANT”) OF THE SECOND PART 1. WITNESSETH that in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Tenant to be paid, observed and performed, the Landlord has demised and leased and by these presents doth demise and lease unto the Tenant that certain portion of a Commercial Building situated in __________________________ (enter unit number and address) which building is constructed or is being constructed, upon the lands and premises more particularly described in Schedule “A” annexed hereto, and which leased premises are outlined in red on the sketch annexed hereto as Schedule “B”. The portion of the Commercial Building hereby leased to the Tenant is hereinafter referred to as the “demised premises”, having a gross leaseable area of approximately _________________sq. ft. TERM 2. TO HAVE AND TO HOLD the said demised premises for and during the term of _______ (___) years to be computed from and inclusive of the ____ day of _________, 2_____ and from thenceforth next ensuing and fully to be completed and ended on the _____ day of _________, 2_____. Provided that if the Landlord is unable for any reason whatsoever, to give possession of the demised premises to the Tenant on the date of commencement hereof, then this Lease shall not be void or voidable, nor shall the Landlord be liable for any loss or damage resulting therefrom. In any such event, there shall be an abatement of rent until such time as the demised premises are in the Landlord’s opinion ready for occupancy, and the Tenant hereby accepts such rent abatement as full consideration for any damages which might otherwise be suffered by it, by reason of the demised premises not being ready as aforesaid. It is understood and agreed that if there should be a delay as aforesaid, the Lease shall commence ______ (___) days after the Landlord notifies the Tenant in writing that the demised premises are ready for occupancy, and in the event the expiration of the last mention _____ (____) day period does not occur on the first day of the month, then the term of this Lease shall commence on the first day of the month next succeeding the expiration of such _____ (___) day period, and the Tenant shall pay rent on a pro- rated daily basis for the period commencing with the expiration of such ____ (___) day period and the first day of the next succeeding month. Notwithstanding the date of the term in the case of any delay, the length of the term of this Lease shall remain unchanged and the date upon which the term hereof shall be fully completed and ended shall be adjusted accordingly by adding thereto the number of days between the commencement date hereinbefore set out and the new date of commencement arrived at in accordance with the preceding provisions. The Tenant when not in default shall have the right to renew the Lease for a further period of _______ (___) year terms under the same terms and conditions save as to the right of further renewal which right shall be reduced to one right of renewal upon the exercise of the right of renewal following the initial Term, and save as to any Landlord’s work, and save as to the minimum rental payable during the term of such renewal which shall be fair market rent, all economic inducement factors considered for premises in comparable buildings, excluding any rental value attributable to leasehold improvements, agreed between the parties but, shall not be less than the current minimum rent payable under the lease in the year immediately prior to the commencement date of the renewal term, and failing such agreement, as determined by arbitration. The Tenant agrees to notify the Landlord in writing of its intent to renew at least ________ (___) months prior to the expiration of the Lease term or renewal term but not earlier than _____ (___) months. RENT 3. YIELDING AND PAYING THEREFORE unto the Landlord yearly and every year during the said term hereby granted, the sum of ____________ ($_________) Dollars payable at _______________in equal monthly installments of ___________ ($______) Dollars each in advance on the first day of each and every month during the said term, the first of such installments to be paid on the first of ______________________. 4. THE TENANT COVENANTS WITH THE LANDLORD AS FOLLOWS: (a) To pay rent commencing __________ and Additional Rent commencing____________. It is understood and agreed that the period from possession and occupancy of the demised premises by the Tenant, provided this Indenture of Lease is executed, through ______________ will be free of all net rent payments by the Tenant to the Landlord. During this period free of net rent payments, the Tenant will be responsible for all other terms and conditions of this Lease including payment of its own utilities and the Tenant’s proportional share of “Additional Rent or Common Area” charges as set forth below in sub-paragraphs (c), (d), and (e). (b) To pay as the same become due respectively, all charges for public utilities, including water, gas, electrical power or energy, steam or hot water used upon or in respect of the demised premises and for fittings, machines, apparatus, meters or other things leased in respect thereof and for all work or services performed by any company or commission in connection with such public utilities; (c) To pay and discharge as additional rent, in each and every year during the said term, as the same become due retrospectively, all taxes (including local improvement rates), rates, duties and assessments that may be levied, rated, charged or assessed against the said demised premises or any part thereof and any equipment facilities, installations and improvements made thereto, and, without limiting the generality of the foregoing, every other tax, charge, rate, assessment or payment which may become a charge or encumbrance upon or levied or collected in respect of the demised premises or any part thereof, whether charged by any municipal, parliamentary, or other body during the term hereby demised. The Tenant shall have the right to contest by appropriate legal proceedings the validity of any tax, rate, including local improvement rates, assessment or other charges referred to in this sub-paragraph; and if the payment of any such tax, rate, local improvement rates, assessment or any other charges may be legally held in abeyance without subjecting the Landlord or Tenant to any liability of whatsoever nature for failure to so pay, the Tenant may postpone such payment until the final determination of any such proceedings, provided that all such proceedings shall be prosecuted with all due diligence and dispatch; (d) To pay in each and every year as additional rental within thirty (30) days after receipt of written notice from the Landlord, its proportionate share of any and all charges, taxes, rates, duties and assessments of the kind or nature referred to in sub-paragraph (c) hereof, including realty taxes and local improvement rates charged, levied, rated or assessed against the parking areas, entrance areas, driveways, walkways, lawns and other common outside areas, and any other lands contained within the limits of the tract of land described in Schedule “A” hereto, except such land as is directly under the Commercial Building. Realty Taxes shall be calculated and recovered from the Tenant in accordance with Municipal and State Tax Laws, as amended from time to time, and may be charged on an assessment basis or proportionate share basis as determined by the Landlord. If the taxes in respect of the Commercial Building of which the demised premises form a part, shall be increased by reason of any installation made in or upon, or any alterations made in or to the demised premises by the Tenant, the Tenant shall be responsible to pay the amount of such increase to the extent that the same is not included in the taxes referred to in sub-paragraph (c) hereof. If requested by the Landlord, the Tenant shall pay monthly 1/12th of the additional rental provided for in sub-paragraph (c) and (d) of this Paragraph 4, such payment to be based upon the Landlord’s estimate of such taxes, rates and duties or upon the actual amount thereof when levied. Any necessary adjustment will be made between the parties at the end of each lease year or at the end of the term, as the case may be. (e) To pay as additional rent a monthly sum equal to 1/12th of its proportionate share of the Landlord’s Maintenance Costs (as hereinafter defined). “Maintenance Costs” of the Landlord means the aggregate of any and all maintenance and upkeep of the Commercial Building of which the demised premises form a part and any surrounding lands and common outside areas, as the same from time to time may be altered, reconstructed or expanded, situate within the tract of land described in Schedule “A” hereto, including without limiting the generality of the foregoing, insurance against fire and supplemental perils, casualty and liability insurance, gardening and landscaping, snow removal, parking area maintenance and repairs, repairs to drainage, curbs and walkways, roof, provision of lighting for parking areas, and common outside areas, business taxes (if any) assessed against the parking areas, entrance areas, driveways and walkways or common outside areas, supplying night watchmen or security guards (if any) and all other expenses properly incurred by the Landlord as a prudent owner in its maintenance of the Commercial Building and provision of its facilities, including Management fees. For greater certainty it is acknowledged and agreed that the Landlord shall have the right to recover all of its costs and expenses as described above but, without duplication and limited to actual expenditures. The Tenant shall receive full benefit of any and all credits, payments, discounts, rebates and third party recoveries including, without limitation, from insurance, warranties and others persons or entities from which the Landlord may be entitled to obtain recovery for any reason whatsoever. At the commencement of the Lease term, the Landlord shall provide the Tenant with an estimate of the Tenant’s proportionate share of Maintenance Costs and Realty Taxes, and the Tenant shall during the first year of the calendar term, pay such proportionate estimated amount in equal monthly installments, on the same days and times as the rent is due hereunder. Within thirty (30) days or receipt by the Tenant of the Landlord’s statement setting forth the total Maintenance Costs for the previous Lease year, and the Tenant’s proportionate share, the Tenant shall pay any deficiency to the Landlord or Landlord will pay any excess to the Tenant. For the year next succeeding the Tenant shall pay its proportionate share of the Maintenance Costs and Realty Taxes on the basis of the previous year, and adjustments shall be made each year in accordance with the Landlord’s statement. The report of the Landlord’s auditors for the time being as to the Maintenance Costs of the Landlord for any particular year shall be conclusive and binding upon both the Landlord and Tenant; For the purposes of sub-paragraphs (d) and (e) hereof, the Tenant’s proportionate share of additional rentals and Maintenance Costs shall be that proportion which the total area, by outside measurement of the demised premises, bears to the total area by outside measurement of the Commercial Building. The aforesaid areas shall be conclusively determined by the Landlord. The Tenant acknowledges and agrees that all payments required to be made by it under sub-paragraphs (c) to (e) hereof, shall, if not paid within thirty (30) days of their due date, or date of demand, be recoverable by the Landlord in the same manner as if they were rental in arrears under this Lease. (f) To pay all business taxes in respect of the business carried on by the Tenant in and upon or by reason of the Tenant’s occupancy of the demised premises. (g) To repair the demised premises, including HVAC equipment, plate glass, doors and related hardware, reasonable wear and tear, damage by fire, lightning, tempest, and structural defect and weakness only excepted. (h) That it shall be lawful for the Landlord and its agents with forty-eight (48) hours notice, and at all reasonable times so as to not disrupt Tenant’s business during the said term, to enter the demised premises to inspect the condition thereof; where an inspection reveals repairs are necessary and required by this Lease to be done by the Tenant. Landlord shall give the Tenant notice in writing, and thereupon Tenant will, within thirty (30) days from the delivery of the notice, make the necessary repairs in a good and workmanlike manner. (i) And further, that Tenant will, at the expiration or sooner determination of the said term, peaceably surrender and yield up unto Landlord the said premises hereby demised with the appurtenances, together with all buildings or erections which at any time during the said term shall be made therein or thereon in good and substantial repair and condition, reasonable wear and tear and damage by fire, lightning, tempest, and structural defect and weakness only excepted. (j) To heat the said premises in a reasonable manner at its own expense to such extent as may be necessary to prevent damage thereto by frost, and to make all necessary repairs (including replacements) to the heating and air conditioning apparatus. (k) That it will comply promptly with all requirements of the local Board of Health, Police or Fire Department and Municipal authorities respecting the manner in which it uses or maintains the said premises. (l) The Tenant will not assign, set over, transfer, sublet, or sub-lease, hypothecate, encumber or in any way deal with or part with the whole of the said demised premises to anyone, for or during the whole or any part of this term, without written consent first being obtained from the Landlord, but such consent shall not be unreasonably withheld, provided, however, and it is made a condition to the giving of such consent that: (i) the proposed assignee or sub-lessee of this Lease shall agree in writing to assume and perform all of the terms, covenants, conditions and agreements by this Lease imposed upon the Tenant herein in the form to be approved by the solicitor for the Landlord; (ii) no assignments or sub-lease shall in any manner release the Tenant from its covenants and obligations hereunder; it is understood however, that no sub- letting or sub-leasing or parting with possession of a part or parts of the demised premises shall take place except with the written consent of the Landlord which consent shall not be unreasonably withheld. (iii) The Tenant agrees to pay to the Landlord a processing fee of ___________ ($________) plus applicable taxes, if any, for any approved assignment or other disposition of the Lease. (m) It is understood and agreed that any sub-leasing of part or all of the premises must be accordance with the City of ____________ zoning and building code requirements at Tenant’s or Sub-Tenant’s expense. (i) That it will not do or omit to do or permit to be done or omitted anything upon or in respect of the demised premises, the doing or omission of which (as the case may be) shall be or result in a nuisance or which shall be annoying or disturbing to other Tenants of the Landlord, shall in any way damage the demised premises or building. (ii) The Tenant shall upon written notice from the Landlord desist immediately from anything which is reasonably deemed a nuisance and make good any damages at its cost within seven (7) days of receipt of such notice. (n) To comply promptly with and conform to the requirements of all applicable statutes, laws, by-laws, regulations, ordinances, and orders from time to time or at any time in force during the term hereof and affecting the condition, equipment, maintenance, use or occupation of the demised premises and with every applicable regulation, order and requirement of the governing underwriters’ association or anybody having similar functions or of any liability or fire insurance company by which the Landlord and the Tenant or either of them may be insured at any time during the term hereof, and that, in any event of the default of the Tenant under the provision of this sub-clause, the Landlord may itself comply with any such requirements as aforesaid and the Tenant will forthwith pay all costs and expenses incurred by the Landlord in this regard and the Tenant agrees that all such costs and expenses shall be recoverable by the Landlord as if the same were additional rent reserved and in arrears under the Lease. (o) In the event of any substantial damage to the demised premises by any cause, to give notice in writing to the Landlord to such damage forthwith upon the same becoming known to the Tenant. (p) That the demised premises shall be used only for the purpose of offices/warehouse/distribution/ __________________ and any other related use. (q) That the Tenant will not do or omit to do, or permit to be done or omitted, upon the demised premises anything which shall cause the rate of insurance upon the said building of which the demised premises form part, or any part thereof, to be increased and if the insurance rate shall be increased as aforesaid that the Tenant shall pay to the Landlord, as additional rent, in addition to any part of insurance premiums hereinbefore agreed to be paid by the Tenant, the amount by which the insurance premiums shall be so increased and that if notice of cancellation shall be given respecting any insurance policy or if any insurance policy upon the said building or any part thereof shall be cancelled or refused to be renewed by an insurer by reason of the use or occupation of the demised premises or any part thereof shall be cancelled or refused to be renewed by an insurer by reason of the use or occupation of the demised premises or any part thereof by the Tenant, the Tenant shall remedy or rectify such use or occupation within fifteen (15) days after being requested so to do in writing by the Landlord and that if the Tenant shall fail to do so as aforesaid the Landlord may at its option terminate this Lease forthwith by leaving upon the said premises notice in writing of its intention so to do and thereupon rent and any other payments for which the Tenant is liable under this Lease shall be apportioned and paid in full to the date of such termination of this Lease and the Tenant shall immediately deliver up possession of the demised premises to the Landlord. (r) The Tenant shall examine the premises before taking possession hereunder. The Tenant at its option and cost shall have _________ (___) business days from the earlier of the first occupancy or Lease commencement date to verify the existing plumbing, heating, air-conditioning, electrical, drainage, lighting, and in general, all existing mechanical systems are in good working order. Upon receipt of such written notice, the Landlord without delay shall repair any mechanical deficiencies. Thereafter, the Tenant shall be fully responsible at its sole cost for the maintenance, repair and replacement of the aforesaid equipment and systems, unless such replacement is the result of age The Tenant agrees that there is no promise, representation, or undertaking by or binding upon the Landlord with respect to any alteration, remodeling or decorating of, or installation of equipment or fixture in the premises except such, if any, as is expressly set forth in this Lease and that in the case of any such express provision then unless the same provides for completion of the remodeling or decorating, or of such installation, after the Tenant’s taking of possession hereunder. (s) The sinks, toilets, and urinals shall not be used for any other purpose than that for which they were constructed, and the expense of any breakage, stoppages or damages resulting from a violation of this provision shall be borne by the Tenant, who shall, or whose employees, agents or invitees shall have caused it. (t) The Tenant shall not place, leave or permit or suffer to be placed, left in or upon the roads, parking lots, sidewalks and delivery areas any debris or refuse except as deposited in areas indicated by the Landlord in proper receptacles placed for that purpose by the Tenant. The said demised premises shall be kept in a clean and sanitary condition in accordance with the laws of the Municipality and in accordance with all directions from any Municipal, governmental or statutory body having jurisdiction. (u) The Tenant will not bring upon the demised premises or any part thereof any machinery, equipment, article or thing that by reason of its weight or size might damage the demised premises and will not at any time overload the floors of the demised premises and that if any damage is caused to the demised premises by any machinery, equipment, article or thing or by overloading or any act, neglect or misuse on the part of the Tenant or any of its servants, agents or employees or any person having business with the Tenant, Tenant will forthwith pay to the Landlord the costs of making good the same. (v) The Tenant may install in, upon or about the Demised Premises signs, which shall remain the property of the Tenant, provided that any damage caused thereby or by the removal thereof to the Demised Premises shall be immediately repaired by the Tenant. All sign location and sizes must be first approved in writing by the Landlord (which approval will not be unreasonably withheld) and must conform to all local municipal by-laws. The Tenant may place its name on the sign pylon exhibiting the name of all the Tenants in the Commercial Building, provided space is available. The Tenant shall comply at its cost with all Municipal By-Laws respecting its signs and shall be responsible at its cost to repair any damages to the premises and building related to or caused by the installation of its signs. 5. THE LANDLORD COVENANTS AND AGREES WITH THE TENANT AS FOLLOWS: (a) For quiet enjoyment, except by reasons of “Force Majeure”; (b) Landlord warrants that at the time of the first occupancy or the commencement of the Lease, whichever is earlier, the premises are free from any material structural defect and the existing plumbing, heating, air-conditioning, electrical, drainage, lighting and, in general, all existing mechanical systems contained therein are in good working condition and fully operable. It is further understood and agreed that the Landlord will be responsible for all structural repairs during the term of the Lease or any renewal thereof, unless such structural deficiencies are the result of misuse or negligence by the Tenant. Except as herein provided and the Landlord’s obligations under the Lease, the Tenant shall at its own costs, maintain and make any repairs or replacements which are not structural in nature to the leased premises for the term of this Lease or any renewal thereafter. (c) That it will maintain the parking areas, walkways, driveways and entranceways, reasonably well lighted and free and clear of ice and snow. 6. PROVIDED AND IT IS HEREBY EXPRESSLY AGREED BY THE TENANT (a) That in case, without the written consent of Landlord, the demised premises shall become and remain vacant or not used for a period of thirty (30) days while the same are suitable for use by Tenant, or be used by any other person than Tenant, or in case the term hereby granted or any of the goods and chattels of Tenant shall be at any time seized or taken in execution or in attachment by any creditor of Tenant, or in the event Tenant shall make any assignment for the benefit of creditors or make any sale within the laws of the governing jurisdiction, or become bankrupt or insolvent or take the benefit of any laws now or hereafter in force for bankrupt or insolvent debtors or any order shall be made for the winding-up of Tenant, then in every such case, the then current month’s rent and the next ensuing three (3) month’s rent and the Tenant’s share of the taxes and additional rentals herein provided, for the then current year (to be reckoned on the rate for the next preceding year in case the rate shall not have been fixed for the then current year) shall immediately become due and payable and, at the option of Landlord, this Lease shall cease and terminate and the said term shall immediately become forfeited and void, in which event Landlord may re-enter and take possession of the demised premises as though Tenant or any occupant of the demised premises was or were holding over after the expiration of the term without any right whatever. Notwithstanding any such termination, the Tenant shall pay to the Landlord all loss of rent suffered by reason of this Lease having been prematurely terminated and all damages incurred by the Landlord with respect thereto, including the cost of recovering the demised premises, and including the worth at the time of such termination of the excess, if any, of the amount of rent for the remainder of the Term over the then reasonable rental value of the demised premises for the remainder of the Term. In determining the rent which would be payable under this Lease by the Tenant from the commencement of the term herein at the time of such termination, or during the three (3) full calendar years preceding such termination, whichever period is shorter. (b) If the Landlord does not exercise its option under paragraph 6(a) to terminate this Lease, it may nevertheless in the events set out in paragraph 6(a), from time to time re-enter the demised premises without terminating this Lease, make such alteration and repairs as it may consider to be necessary in order to re-let the demised premises or any part thereof as agent for the Tenant for such period or periods and at such rental or rentals and upon such other terms and conditions as the Landlord in its sole discretion may deem advisable. Upon each such re-letting, all rentals received by the Landlord from such re- letting shall be applied, first, to the payment of any costs and expenses of such re-letting, including brokerage fees and solicitors’ fees and of the costs of such alterations and repairs; second, to the payment of any indebtedness other than rent due from the Tenant to the Landlord; third, to the payment of rent due and unpaid, and the residue, if any, shall be held by the Landlord and applied in payment of future rent as it may become due and payable. The Tenant shall pay to the Landlord the amount by which the rentals received from such re-letting during any month are less than the rent payable during that month by the Tenant. Notwithstanding any such re-letting without termination, the Landlord may at any time thereafter elect to terminate this Lease. No such re-entry or taking of possession by the Landlord shall be construed as an election on its part to terminate this Lease, unless, at the time of or subsequent to such re-entry or taking of possession, a written notice of such intention has been given to the Tenant or unless the termination thereof is decreed by a court of competent jurisdiction. (c) That in case of removal by the Tenant of its goods and chattels from the demised premises, otherwise than in the ordinary course of business, the Landlord may follow the same for thirty (30) days in the same manner as is provided for in the laws of the governing jurisdiction. (d) That the Landlord shall not, in any event whatsoever, be liable or responsible in any way for any personal injury or death that may be suffered or sustained by any employee, servant or agent of the Tenant, any sub-lessee or licensee of the Tenant or any person on the business of the Tenant or its sub-lessees or licensees who may be upon the demised premises or the Commercial Building of which the demised Premises form part or any part of the lands described in Schedule “A” hereto, or for any loss of, or damage or injury to, any property, including cars and contents thereof, belonging to the Tenant, any employee, servant or agent of the Tenant, any sub-lessee or licensee of the Tenant or any person on the business of the Tenant or its sub-lessees or licensees in or about the premises described in Schedule “A” hereto while such property is on the demised premises or said Commercial Building or any part of said lands in Schedule “A” and which may be caused or occasioned by any cause or matter whatsoever and, in particular, but without restricting the generality of the foregoing, which may be caused or occasioned be steam, electricity, gas, fumes, vapor, water works water, rain water, other water, sleet, snow, ice melted sleet, snow or ice, which may leak, issue or flow from the demised premises or from any part of the Commercial Building and appurtenant premises of which the demised premises for part or which may leak, issue or flow into the demised premises from any other part of the building of which the demised premises form any other part or form any water, steam, sprinkler or drainage pipe or plumbing works situated in the demised premises or in the Commercial Building of which the demised premises form part or partly in one and partly in the other, or which may be caused or occasioned or attributable to the condition or arrangement of any electrical or other wiring or caused or occasioned by snow or ice or other substances or obstructions on the sidewalks, driveways, roads, streets and grounds in or about or appurtenant to the Commercial Building of which the demised premises form part or caused or occasioned by the failure to supply ice or snow removal or by the defective condition or lack of repair or misrepair, thereof or by any defect in any machinery or equipment in said Commercial Building, unless any exterior condition or interior defect is caused by the negligence of the Landlord, or in the operation thereof by the Tenant or by any defects in or the misrepair or non-repair of the demised premises or of the Commercial Building of which the demised premises form part and the Tenant further covenants and agrees to indemnify and save the Landlord harmless from and against any and all liabilities, claims, demands and causes of action of any nature or any expense for such injury, death, loss or damage as aforesaid. (e) That at all times during the term, the Tenant will maintain at its own expense, comprehensive general liability insurance in a company licensed to carry on business in the State of ___________________, against claims for personal injury, death or property damage or loss arising out of all the operations of the Tenant, indemnifying and protecting the Landlord and Tenant to a limit of at least _____________ ($________) Dollars. Such insurance shall include without limitation, sign and plate glass coverage, any accident caused by the explosion of a pressure vessel or vessels which may be used by the Tenant and shall be written in the joint names of the Landlord during the continuation of the present Lease, satisfactory evidence that such insurance is in full force and effect. Evidence of renewal or replacement of each such policy shall be in the hands of Landlord at least ten (10) days before the expiration thereof. (f) That the Tenant may install its usual trade fixtures in the usual manner, provided such installation does not damage the structure of the building of which the demised premises forms part, and provided the Tenant has paid the rent hereby reserved and performed the covenants herein contained and on its part to be performed, the Tenant shall have the right at expiration or other termination of this Lease to remove its own signs and such trade fixtures, but the Tenant shall make good the damage or injury caused to the demised premises that shall have resulted from such installation and removal. Provided that any additions, alterations or improvements which in any manner are or shall be attached to the floors, walls or ceilings and floor covering cemented or otherwise affixed to the floor of the demised premises and removal of said additions, alterations, or improvements will cause substantial damage to the demised premises then the additions, alterations or improvements shall at the option of the Landlord remain and become the property of the Landlord at the expiry of this Lease. (g) That in the event of the Tenant failing to pay any taxes rates or charges which it has herein covenanted to pay and which shall constitute a lien or charge upon the demised premises, the Landlord after the expiration of ten (10) days notice to the Tenant within which such default has not yet been cured, may pay all or any of the same and all of such payments so made shall constitute rent forthwith payable with interest at the rate of __________ (___%) percent per annum from the date of each such payment until fully paid, provided that where there is a bona fide dispute of the amount or propriety of any payment alleged to be due from the Tenant, the Landlord shall not pay the same until such dispute has been resolved by agreement of the Tenant or by competent authority, whichever is earlier in date. (h) That the Tenant shall have the right to make alterations and installations at its own expense from time to time during the Lease term, or any renewal thereof, provided it has the prior written consent of the Landlord, which is not to be unreasonably withheld. Subject to the provisions of sub-clause 5(b) above, the Tenant agrees to occupy the premises in an “as is” condition, save and accept the Landlord’s work as detailed in Schedule D, attached hereto and made a part hereof, and the Tenant further agrees to make any and all repairs, replacements or improvements at its own expense in order to receive and occupancy permit and license for its intended use. Any erection, addition or improvement placed upon the demised premises shall at the option of the Landlord be removed at the expiry of the Lease or any renewal thereof and shall be subject to all the provisions of this Lease. The Tenant agrees to repair at its cost any damages to the demised premises, beyond normal wear and tear, including flooring, walls, electrical, plumbing and HVAC equipment at the expiry of the Lease or any renewal thereof. The Tenant and Landlord shall make a final inspection of the demised premises within fifteen (15) days of the expiry of the Lease or any renewal thereof and vacant possession by the Landlord. (i) That the Tenant shall from time to time at the request of the Landlord, produce to the Landlord satisfactory evidence of the due payment by the Tenant of all payments required to be made by the Tenant under this Lease. The taxes, local improvement rates, insurance premiums, and other matters of a similar nature in respect of the first and last years of the Lease term shall be adjusted between Landlord and Tenant. (j) All glass, locks, and trimmings, in or upon the doors or windows of the demised premises shall be kept whole; whenever any part thereof shall become broken, the same shall be immediately replaced or repaired by a type or quality equivalent to the original installation, and such replacement and repairs shall be paid by the Tenant. (k) The Tenant covenants to comply, at its own expense, with any orders for alterations or repairs that may from time to time, during the currency of this Lease, be required, as a direct result of its occupation, by any dominion, state or Municipal authority under or by virtue of any statute, regulation or by-law in that respect and further covenants to save harmless and indemnify the Landlord from any loss or liability arising out of any breach, violation or non-performance by the Tenant of any covenant, term or provision hereof or by reason of the registration of any Mechanic’s Lien, provided, however, that the application of this paragraph shall be limited to matters arising out of or attributable to the Tenant’s use and occupation. (l) The Tenant covenants that it is the sole owner of all goods and chattels that are to be brought upon the premises and that same are free from any mortgage, lien or other charge or encumbrance. 7. PROVIDED IT IS MUTUALLY UNDERSTOOD AND AGREED AS FOLLOWS: (a) That if during the term of this Lease: (i) the Commercial Building or demised premises are totally destroyed by fire, lightning, tempest, explosion, impact of aircraft or vehicles, acts of God, riots or insurrections or are partially destroyed so that it cannot be repaired with reasonable diligence within one hundred and eighty (180) days of the happening of such injury, then the Lease shall at the option of the Landlord or Tenant to be exercised within (10) ten days of the happening of the injury, cease and become null and void from the date of such damage or destruction, and the Tenant shall immediately surrender the premises and all interest therein to the Landlord and the Tenant shall pay rent and other charges only to the time of such damage or destruction and any prepaid rent shall be returned to the Tenant, and in case of destruction or partial destruction as above mentioned, the Landlord may re-enter or re-possess the premises discharged of this Lease, and may remove all parties there from; failing exercise of said option, the Landlord shall repair or rebuild the demised premises and rent shall abate until completion. (ii) if the Commercial Building or the demised premises are partially destroyed by fire, lightning, tempest, explosion, impact of aircraft or vehicles, acts of God, riots or insurrections, and can be repaired with reasonable diligence within one hundred and eighty (180) days of the happening of said injury, and if damage is such as to render the demised premises wholly unfit for occupancy, then the rent and other charges shall not run or accrue after the said injury, or while the process or repairs is going on, and the Landlord shall repair the same with all reasonable speed and then the rent shall recommence immediately after the Landlord gives notice that said repairs shall have been completed and the Tenant is able to resume its normal business operations. (iii) if the Commercial Building or the demised premises are partially destroyed by fire, lightning, tempest, explosion, impact of aircraft or vehicles, acts of God, riots or insurrections, and can be repaired with reasonable diligence within one hundred and eighty (180) days from the happening of said injury, and if damage is such that the demised premises can be partially used for the purposes of Tenant, then until such damage shall have been repaired, the rent and other charges shall abate in proportion that the part of the leased premises rendered unfit for occupancy bears to the whole of the leased premises and the Landlord shall repair same with all reasonable speed. (c) That the Landlord or its agents and employees shall have the right, with forty eight (48) hours notice and during normal business hours of the Tenant, to enter upon the demised premises for the purpose of exhibiting same to prospective purchasers or mortgages. Provided that Landlord shall have the right within three (3) months from the termination of the said term to place upon the demised premises a notice of reasonable dimensions and reasonably placed so as not to interfere with the Tenant’s business stating that the demised premises are to let; and further, provided that Tenant will not remove such notice or permit the same to be removed. The Landlord and its agents and employees shall also be permitted to enter upon the demised premises within the aforesaid period to show the same to prospective Tenants. (d) In the event the Tenant remains in possession of the demised premises after the end of the term herein and without the execution and delivery of a new Lease, and the term hereby granted, and the Tenant shall be deemed to be using the demised premises as a Tenant from month to month at a monthly rental, as determined by the Landlord, payable in advance, and otherwise upon the same terms and conditions and provisions as are set forth in this Lease insofar as the same are applicable to a month to month tenancy. (e) Either party may terminate the month to month tenancy at any time upon thirty (30) days prior written notice to be effective on the last day of a month or rental period. (i) Any notice required to be given hereunder to the Tenant or in connection with the Lease for any purpose, may be sufficiently given if delivered at or sent by registered post prepaid to the Tenant at the demised premises. The said notice shall be deemed to have been given on the third business day next following the day when it is deposited in a post office in the City of _____________. (ii) Any notice for the Landlord may be sufficiently given if delivered to the Landlord personally or, if sent by registered post prepaid to the Landlord at _________________________. (iii) Either the Landlord or Tenant may at any time give notice in writing to the other of any change of address of the party giving such notice and from and after the giving of such notice the address or addresses therein specified shall be deemed to be the address or addresses of such party for the giving of such notice thereafter. (f) Any notice to either party shall also be deemed sufficiently given if sent by facsimile transmission on any business day. (g) Any and all moneys payable by the Tenant to the Landlord under the provisions of this Lease shall be deemed to be and may be collectible as rent and when in arrears such amount shall be recoverable by the Landlord in the same manner as if such amount were rental in arrears under this Lease and that the Landlord shall be entitled to take any action therefore which it may be entitled to take in respect of rental in arrears under this Lease and that, in the event of the Tenant making default in payment of any sum required to be paid by it under the provisions of this Lease to any person, firm or corporation other than the Landlord, the Landlord shall have the right to pay any sums so in default and that such sums thereupon shall be recoverable by the Landlord in the same manner as if such sums were rental in arrears under this Lease and the Landlord shall be entitled to take any action therefore which it may be entitled to take in respect to rental in arrears under this Lease. (h) That this Lease and everything contained shall be deemed to be subordinate to any charge or charges from time to time created by the Landlord with respect to the demised premises or the land in Schedule “A” and the buildings thereon by way of mortgage or charge and the Tenant hereby covenants and agrees that it will promptly at any time and from time to time, as required by the Landlord during the term hereof, execute all documents and give all further assurances to this proviso as may be reasonably required to effectuate the postponement of its rights and privileges hereunder to the holder or holders of any such charge or charges, provided that such mortgage or mortgages shall permit the Tenant to continue in quiet possession of the demised premises in accordance with the terms and conditions hereof as long as the Tenant is not in default hereunder and whether or not such mortgage or mortgages are in default. (i) The Tenant agrees to provide the Landlord upon request from time to time a certificate or certificates that the Lease herein is in full force and effect and that the term has not been varied, amended or waived if such is the case and that the rents hereunder are not in arrears. (j) The Tenant, its employees, customers, invitees and all others requiring communication with it in connection with the operation of its business, shall have the use in common with all others entitled thereto of all driveways, entranceways and sidewalks provided by the Landlord subject to rules and regulations in regard thereto but where accommodation is available for the receiving and delivery of goods or merchandise at the rear of the demised premises, the Tenant shall receive all goods at and make all deliveries from the rear of the leased premises. Nothing in this paragraph or elsewhere herein shall prevent or be construed so as to prevent the Landlord from altering the location of said driveways, entranceways, and sidewalks from time to time or from erecting new buildings or extending existing buildings. (k) The Tenant shall have the right to park or permit to be parked motor vehicles in such portions of the parking areas adjacent to the Commercial Building as the Landlord may designate or allocate to it, in the Landlord’s sole discretions; provided and the Tenant covenants that it will not use or permit to be used the said portion of the parking area in such a manner as to restrict the flow of traffic across the parking area and that it will not erect or permit to be erected any barrier across or adjacent to any part of such portion of the parking area. Provided further that the Tenant, its servants, agents and employees will not use or cause to be used by it or on its account any parts of the said parking area other than those so designated, The Landlord does not guarantee to the Tenant the use of any specific number of parking spaces in the said parking areas. (l) That notwithstanding anything herein contained to the contrary, the Landlord hereby covenants and agrees with the Tenant that if the Tenant shall be in default of any of its covenants hereunder, other than its covenant to pay rent, the Landlord shall give to the Tenant notice in writing stating the said default with reasonably sufficient particulars and requiring the said default to be remedied and that, if such default is not remedied by the Tenant within thirty (30) days after the receipt of such notice, or such longer period as may be reasonably necessary in view of the nature of default, the Landlord at its option either may enter into and upon the said demised premises or any part thereof in the name of the whole and have again, repossess and enjoy the same as of its former estate and in such event the said Lease shall be terminated or itself take such steps and do or cause to be done such things as may be necessary to remedy and correct such defaults and may thereupon charge its total costs and expenses incurred in respect thereof to the Tenant who hereby covenants and agrees to pay the same forthwith as additional rent and the Tenant hereby covenants that any and all such costs and expenses incurred by the Landlord and unpaid by the Tenant shall be recoverable by the Landlord as if the same were, and in the same manner as, rent reserved and in arrears under the terms of this Lease. (m) The Tenant acknowledges and agrees that it is intended that this Lease shall be a completely carefree net lease for the Landlord, that the Landlord shall not be responsible during the term of the Lease for any costs, charges, expenses and outlays of any nature whatsoever in respect of the lands, buildings or improvements thereon, or the contents thereof, excepting only the Landlord’s income tax in respect of income received from leasing the demised premises, corporation taxes, succession duty, estate tax and principal and interest payments to be made in connection with any mortgage or mortgages placed on the land and premises by the Landlord. 8. PROVISION FOR RE-ENTRY BY LANDLORD ON NON-PAYMENT OF RENT OR NON-PERFORMANCE OF COVENANTS. Provided also that is the case of a seizure of forfeiture of the term for any of the causes hereinbefore set-forth, the Landlord shall have the same right of re-entry as is given under the next preceding proviso. The Tenant further covenants and agrees with the Landlord that in case of non-payment of the said rent at the said times as herein provided, whether lawfully demanded or not and such default shall continue for a period of five (5) consecutive days, or in case the said leased premises shall be deserted or vacated, the Landlord, in addition to all other rights hereby reserved to it, shall have the right to re-enter the same as the agent of the Tenant either by force or otherwise, without being liable for any prosecution therefore and to re-let the whole or any portion of the demised premises, for any period equal to or greater or less than the remainder of the then current term as agent of the Tenant, and to receive the rent therefore, said rent to be any sum which it may deem reasonable, to any Tenant which it may deem suitable and satisfactory, and for any use and purpose which it may deem appropriate, and in connection with any such lease the Landlord may make such changes in the character of the improvements of the demised premises as the Landlord may determine to be appropriate or helpful in effecting such lease. However, in no event shall the Landlord be under any obligation to re-let the demised premises in whole or in part for any purpose which the Landlord may regard as injurious to the demised premises, or to any Tenant which the Landlord, in the exercise of reasonable discretion, shall deem to be objectionable, and as the agent of the Tenant to take possession of any furniture or other property on the said premises and sell the same at public or private sale without notice and to apply the proceeds of such sale and any rent derived from re-letting the said premises, upon account of the rent due under these presents, and the Tenant shall remain liable to the Landlord for the deficiency, if any, it being the intention of this Lease that nothing in this Lease contained and no entry made by the Landlord hereunder, shall in any way release the Tenant from the payment of the rent hereby reserved during the term hereof beyond such sum as may be realized by the Landlord by the re-letting and sale of furniture hereinbefore allowed. The Landlord shall not in any event be required to pay to the Tenant any surplus of any sums received by the Landlord on a re-letting of the demised premises in excess of the rent reserved in this Lease. 9. It is expressly understood and agreed that the remedies of the Landlord under this Lease are cumulative and the exercise by the Landlord of any right or remedy for the default or breach of any term, covenant, condition or agreement herein contained shall not be deemed to be waiver of or alter, affect or prejudice any other right or remedy or other rights or remedies, to which the Landlord may be lawfully entitled for the same default or breach; and any waiver by the Landlord of the strict observance, performances or compliance by the Tenant or with any term, covenant, condition or agreement herein contained, or any indulgence granted by the Landlord to the Tenant shall not be deemed to be a waiver of any subsequent default or breach by the Tenant, nor entitle the Tenant to any similar indulgence theretofore granted. 10. The Tenant, its servants, agents and employees will at all times during the occupancy of the demised premises observe and conform to such rules and regulations as shall be made by the Landlord from time to time including without limiting the generality of the foregoing, the rules and regulations set forth in Schedule “C” attached hereto and of which the Tenant shall be notified, such rules and regulations being deemed to be incorporated in and form part of these presents. 11. If, at any time during the term hereby demised, any public body or paramount authority shall take or expropriate a portion of the common areas and facilities referred to in this Lease or any portion of the demised premises not covered by buildings or structures or shall take or expropriate an easement or right or license in the nature of an easement over, upon or under a portion of the said lands, and such taking or expropriation does not materially affect the Tenant’s use or enjoyment of the demised premises, then the whole of the compensation awarded or settlement for the lands so taken or expropriated, whether fixed by agreement or otherwise shall be paid to or received by the Landlord and the Tenant hereby assigns, transfers and sets over unto the Landlord all the right, title and interest of the Tenant therein and thereto, and this Lease shall thereafter continue in effect with respect to the demised premises without any abatement of rent. In the event that the taking of expropriation does materially affect the Tenants use or enjoyment of the demised premises, the whole of the compensation awarded or settlement, whether fixed by agreement or otherwise, for the said lands so taken or expropriated, shall nevertheless be paid to the Landlord, but the rent thereafter payable by the Tenant shall abate accordingly, and, in addition thereto, after payment of the amount to which the Landlord is entitled as aforesaid, the Tenant shall be entitled to that portion of the award or compensation granted by the expropriating body relating or attributable to the Tenant’s leasehold improvements so taken or expropriated. If the Landlord and the Tenant shall be unable to agree, within thirty (30) days after the amount of compensation, award or settlement as aforesaid has been fixed, as to whether such taking or expropriation materially affects the Tenant’s use or enjoyment of the demised premises or as to the extent to which the rent shall abate, then the same shall be determined by a single arbitrator, if the parties can agree on one, and, failing such agreement, by a board or arbitration composed by three arbitrators, one to be chosen by each of the parties hereto and the third to be chosen by the two arbitrators selected by the parties. The determination of a majority of such arbitrators will be final and binding upon the parties hereto. Any such arbitration shall be carried out under the provisions of the rules of arbitration under the governing jurisdiction. In the event that such taking or expropriation so affects the demised premises as not to terminate this Lease but as to require the reconstruction or replacements of some portion of the demised premises, such reconstruction or replacement shall be carried out at the Landlord’s expense in a good and workmanlike manner and as expeditiously as reasonably practicable, provided the cost thereof does not exceed the amount of the compensation awarded or fixed by agreement or otherwise. 12. The Landlord acknowledges receipt from the Tenant of the sum of ______________ ($________) Dollars upon the execution hereof, which sum is to be held by the Landlord as liquidated damages ( in addition to any other rights or remedies that the Landlord may have) for the Landlord’s trouble and expense in case the Landlord shall be entitled to determine the term hereby demised because of non-payment of rent by the Tenant, or because the Tenant has made an assignment for the benefit of creditors, or become bankrupt, or insolvent or because of the Tenant’s failure to perform, observe or carry out any of the provisions, covenant and agreements herein contained. PROVIDED, however, that if the term hereby demised is not determined by the Landlord for any of the causes aforesaid prior to the expiration of the demised term, the Landlord shall apply such sum or part thereof to (a) the repair of the demised premises, if necessary, to the original condition, reasonable wear and tear excepted, (b) to the payment of any sum due to the Landlord from the Tenant at the termination of this Lease. Notwithstanding the foregoing, the deposit shall first be applied to the installment of rent due for the month of ____________ and provided there is no ongoing default on the part of the Tenant from and after the second last month of the Term of the Lease including any renewals thereof such amount as may then be remaining shall be applied to the last month’s rent of the term or any renewal thereof and failing any subsequent default on the part of the Tenant the Tenant shall not be required to make any further payment on account of same. 13. Time shall be of the essence of the agreement save as herein otherwise specified. 14. It is further agreed and declared that these presents shall extend to, be binding upon and inure to the benefit of the parties hereto, their heirs, executors, administrators, assigns, respectively, as limited in this Lease. 15. Words importing the singular number only shall include the plural, and words importing firms and corporation shall include persons. Unless the context otherwise requires, the word “Landlord” and the word “Tenant” whenever used herein shall be construed to include their respective successors and permitted assigns, and if the Tenant is not a corporation shall include heirs, executors and administrators. When the context so requires or permits the masculine gender shall be read as if the feminine or neuter, as the case may be, was expressed. The subheadings introducing Paragraphs are for convenience or reference only, and shall not affect the interpretation thereof. If any Paragraph or parts of Paragraphs contained in this Lease shall be judicially held invalid or unenforceable the remainder of this Lease shall be interpreted as if such Paragraphs or part of Paragraphs had not been included. The expression “Paragraph” followed by a number and/or letter means and refers to the specified Paragraph of this Lease. 16. Schedules “A”, “B”, “C” and “D” attached hereto shall be an integral part and parcel of this Lease. IN WITNESS WHEREOF the parties have executed this Lease on the ____ day of _____________, 2_____. (TENANT) Per: Name: Title: I have authority to bind the Company. (LANDLORD) Per: Name: Title: I have authority to bind the Company. SCHEDULE “A” SCHEDULE “B” SCHEDULE “C” SCHEDULE “D”
Pages to are hidden for
"Agreement to Lease - Commercial Lease"Please download to view full document