COMMERCIAL LEASE AGREEMENT
THIS LEASE (this "Lease") is dated as of ______________________ (hereinafter, the "Effective Date")
BETWEEN:
_________ of _________
(the "Landlord")
OF THE FIRST PART
AND
_________ of _________
(the "Tenant")
OF THE SECOND PART
IN CONSIDERATION received from the Landlord for leasing certain premises to the Tenant, and the mutual benefits and obligations outlined in this Lease, the Parties to this agreement (referred to as the "Parties") hereby agree to the following terms:
Intent of Lease
1. The Parties to this Lease mutually agree that the rent for this Lease will be based on a gross rent structure, wherein the Tenant will be responsible for paying the Base Rent and any Additional Rent, while the Landlord will bear the responsibility for all other service charges associated with the Premises and the operation of the Building, unless otherwise specified in this Lease.
2. The Landlord agrees to lease to the Tenant the office area referred by the municipality as _________, _________ (the "Premises"), and which encompasses a Leasable Area of _________ square feet.
3. The Premises shall be utilized solely for the following permitted use: ______________________________________________________________________
__________________________________________________ (the "Permitted Use").
4. As long as the Tenant, or an assignee or subtenant approved by the Landlord, is using and occupying the Premises for the Permitted Use and is not in default under the Lease, the Landlord agrees not to lease any space in the Building to any tenant whose primary business involves the provision of the following services: ______________________________________________________________________
______________________________________________________________________
5. The lease term shall start on _________ at 12:00 noon and shall terminate on _________ at 12:00 noon (the 'Term').
6. The Landlord has the right to terminate the tenancy under this Lease by giving the right number of days notice as required by the law of the if the Tenant fails to observe, perform, and keep any of the covenants, agreements, stipulations, obligations, conditions, or other provisions of this Lease. However, if the Tenant persists in such default beyond the stipulated number of days' notice, the Landlord may terminate the tenancy without further notice.
7. The Tenant shall pay the Base Rent of $_________, payable per month, for the Premises (the "Base Rent"), without any deduction, abatement, or setoff, subject to the terms of this Lease. The Tenant shall also be responsible for any taxes or fees related to its business.
8. The Tenant will pay the Base Rent on or before the 1st of each and every month of the Term to the Landlord.
9. The landlord retains the right to collect the full amount owed, even if they accept a partial payment from the tenant.
10. The Tenant is obligated to fully equip, furnish, staff, and open the entire Premises for public business on the agreed-upon start date of the lease and continuously use and occupy the entire Premises for its business operations throughout the lease term. The Tenant is required to operate its business in a reputable manner on the days and during the hours of business specified by the Landlord.
11. The Tenant agrees to comply with all applicable laws, regulations, and rules set forth by any governmental or regulatory body, whether federal, state, municipal, or otherwise, in relation to the operation of its business on the Premises. The Tenant further agrees not to engage in any activity on or in the Premises that violates any of these laws or regulations.
12. The Tenant agrees to operate and conduct its business on the Premises in compliance with all applicable statutes, including any subordinate legislation currently in force or that may come into force in the future, and any regulations, rules, or orders issued by any government department, local authority, public or competent authority, or court of competent jurisdiction. The Tenant also agrees to comply with any requirements of the insurers relating to the use, occupancy, and enjoyment of the Building, including adhering to proper health and safety practices recommended by all appropriate authorities.
Quiet Enjoyment
13. The Landlord promises that as long as the Tenant fulfills their obligations under this Lease, such as paying rent and complying with the terms of the lease, the Tenant will be able to use and enjoy the Premises without any interference or disturbance from the Landlord.
14. If the Tenant remains in the Premises after the lease term has ended or the lease has been terminated, without written consent from the Landlord, the Tenant will become a month-to-month tenant. The Tenant will be required to pay a monthly rental amount that is at least twice the Base Rent, and all other provisions of the original Lease will still apply to the new month-to-month tenancy. It should be noted that a tenancy from year to year will not be automatically created by law in this situation.
Additional Rights on Reentry
15. If the Landlord reenters the Premises or terminates this Lease, then:
a. Even if the lease is terminated and the term becomes forfeited and void, the provisions of the lease that describe the consequences of termination will still apply;
b. The Landlord has the right to relet the Premises or a portion of the Premises for a term that may be shorter or longer than the remaining Term, and may offer reasonable concessions as part of the reletting process, which may include alterations or improvements to the Premises;
c. After reentry, the Landlord may appoint a receiver to collect rents and profits from the Tenant's business. If necessary, the receiver may take possession of the Tenant's personal property used in the business, such as inventory, trade fixtures, and furnishings, and use them without compensating the Tenant;
d. After reentry, the Landlord may terminate the Lease by providing written notice of termination to the Tenant within 5 days. Failure to provide such notice will not result in the automatic termination of the Lease upon reentry by the Landlord or its agents.;
e. The Tenant will pay the Landlord on demand:
i. all rent, additional rent, and any other amounts owed under the Lease up to the time of reentry or termination, whichever occurs later;
ii. reasonable expenses incurred or to be incurred by the Landlord in connection with the reentry, termination, reletting, collection of amounts due or payable by the Tenant, seizure, and sale of assets, and any other actions taken by the Landlord as a result of the Tenant's default under this Lease. These expenses shall include but are not limited to, brokerage fees and expenses, legal fees and disbursements, and the expenses of keeping the Premises in good order, repairing them, and preparing them for reletting; and
iii. as liquidated damages, an amount equivalent to the expected loss of rent and other income that the Landlord would have received from the unexpired portion of the Term, if the Lease had not been terminated. The Landlord may opt to receive this amount either:
I. an amount calculated by the Landlord, based on the present worth of all Base Rent and estimated Additional Rent that would have been payable during the unexpired portion of the Term, discounted at a _________% per annum interest rate. The Landlord may use reasonable estimates of when any such other amounts would have become payable and may make such other assumptions of the facts as may be reasonable in the circumstances; or
II. an amount equal to the Base Rent and estimated Additional Rent for a period of six (6) months.
16. The Tenant is not responsible for obtaining insurance coverage for any damage or loss to the Landlord's contents and furnishings in or about the Premises. The Tenant assumes no liability for any such loss.
17. The Tenant is not responsible for obtaining insurance coverage for the Premises against damage or loss to the structure, mechanical or improvements to the Building, and the Tenant holds no liability for any such loss.
18. The Tenant is not responsible for obtaining liability insurance for the Premises and will not be held liable for any loss resulting from the lack of such insurance.
Abandonment
19. In the event that the Tenant abandons the Premises or any part thereof during the Term, the Landlord reserves the right, at its option, to enter the Premises without incurring any liability or penalty, and without being obligated to make any payment to the Tenant. The Landlord may also choose, as agent for the Tenant, to relet the Premises, or any part thereof, for the remainder of the Term, and to collect rent payable by virtue of such reletting. In such case, the Tenant may be held liable for any difference between the Rent payable under this Lease for the unexpired Term and the net rent received by the Landlord from the reletting. Any personal property left by the Tenant on the Premises following abandonment will be deemed abandoned by the Tenant, and the Landlord may dispose of such property as it sees fit, without incurring any liability.
Governing Law
20. The Parties to this Lease intend that the tenancy created by this Lease, as well as its performance and any legal proceedings arising from it, be governed exclusively by the laws of the , regardless of where any legal action or proceedings may be initiated.
Severability
21. The Parties to this Lease acknowledge that the applicable legislation of the (the 'Act') may take precedence over any provision of this Lease. In the event of a conflict between any provision of this Lease and the Act, the Act will prevail, and the provision of the Lease in conflict will be amended or deleted as necessary to comply with the Act. Furthermore, any provisions required by the Act will be incorporated into this Lease.
Assignment and Subletting
22. The Tenant is prohibited from assigning this Lease, subletting the Premises, or granting any concession or license to use any part of the Premises. Any such assignment, subletting, concession, or license, whether by operation of law or otherwise, will be considered void and may, at the option of the Landlord, result in the termination of this Lease.
Bulk Sale
23. Before conducting any bulk sale of goods and assets, the Tenant must obtain the Landlord's written consent. The Landlord may not unreasonably withhold their consent if the Tenant and the Purchaser can provide the Landlord with assurances, in a form satisfactory to the Landlord, that the Tenant's obligations under this Lease will continue to be performed and respected in a manner satisfactory to the Landlord after the completion of the bulk sale.
24. The Tenant is required to promptly inform the Landlord of any damage or situation that could significantly disrupt the normal use of the Premises.
25. The Tenant shall refrain from creating or permitting any noise or nuisance that would reasonably disrupt the comfort or convenience of other tenants, as determined by the Landlord.
26. The Tenant is prohibited from participating in any unlawful business or conduct in or around the Premises.
27. The Landlord and Tenant are obligated to adhere to all laws and regulations pertaining to health, sanitation, fire safety, housing, and general safety standards.
Surrender of Premises
28. The Tenant shall vacate and return the Premises to the Landlord at the expiration of the lease term in the same good state and condition as they were at the start of this Lease, except for reasonable wear and tear and damages caused by natural elements.
Hazardous Materials
29. The Tenant is prohibited from keeping or storing any items or materials on the Premises that are hazardous, flammable, explosive, or may significantly increase the risk of fire on the Premises or that may be deemed hazardous by any reputable insurance company. However, if it is necessary for the proper functioning of the business, the tenant may store hazardous materials as long as the Tenant is responsible for adhering to all laws, regulations, and rules concerning dangerous, flammable, or explosive materials and environmental protection. The Tenant shall:
a. Comply with any applicable laws, regulations, rules, or government authorities, with the Landlord's approval and at its own expense;
b. Promptly notify the Landlord in writing of any discharge or release of such materials in or around the Premises;
c. Repair any damage resulting from such discharge or release in or around the Premises, with the Landlord's approval; and
d. At its own cost, obtain a report from an independent consultant verifying the removal or compliance with such materials if requested by the Landlord.
Rules and Regulations
30. The Tenant agrees to abide by all regulations and guidelines posted by the Landlord with regard to the use and maintenance of the Building, parking lot, and other communal facilities provided for the Tenant's use on the Premises.
General Provisions
31. The Landlord's waiver of any failure by the Tenant to perform or observe the provisions of this Lease will not act as a waiver of the Landlord's rights under this Lease with respect to any future defaults, breaches, or nonperformance. Such waiver will not impede or alter the Landlord's rights concerning any future defaults or breaches in any way.
32. This Lease will remain in effect and be legally binding on and beneficial to the respective heirs, executors, administrators, successors and assigns of each party to this Lease. All obligations and promises contained in this Lease shall be considered as fundamental terms of this Lease.
33. Any amounts due from the Tenant to the Landlord under this Lease will be considered as Additional Rent and can be collected by the Landlord as unpaid rent.
34. If there are multiple Tenants executing this Lease, all of them will be jointly and severally liable for each other's acts, omissions, and liabilities under this Lease.
35. Time is of the essence in this Lease.
36. This Lease represents the complete agreement between the Landlord and the Tenant. No previous understandings or representations of any kind made before the date of this Lease will be binding on either party except as incorporated into this Lease. Specifically, no implied warranties of the Landlord outside of this Lease will be considered
IN WITNESS WHEREOF This Lease has been executed by the Parties on this ________ day of ________________, ________, by affixing their signatures under hand and seal, or by a duly authorized officer under seal.
| |
______________________________ | |
(Signature of Witness) | ______________________________ |
| _________ (Landlord) |
______________________________ | |
(Print Name) | |
| |
______________________________ | |
(Signature of Witness) | ______________________________ |
| _________ (Tenant) |
______________________________ | |
(Print Name) | |