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Agreement to Lease - Commercial Lease

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Agreement to Lease - Commercial Lease Powered By Docstoc
					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”

				
DOCUMENT INFO
Description: 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.
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