COMMERCIAL LEASE AGREEMENT
THIS COMMERCIAL LEASE AGREEMENT (the “Agreement”), made and entered into on this____________ day of _______________, 20 _____ by and between ______________________________ of _______________________________________ _______________________ (“Lessor”) and __________________________ of _______________________________________________________________ (“Lessee”) collectively referred to as “the parties”.
The parties agree as follows:
Premises
In consideration of the rents to be paid hereunder and the covenants and obligations to be observed by the Lessee, Lessor does hereby lease to the Lessee and the Lessee does hereby lease and take from the Lessor the following property located at:
______________________________________________________________________________________________________________________________________________________________________________________________________ together with all improvements located thereon (the “Premises”).
Term
The term of this Lease shall commence on the ______________ day of ______________________, ______________ and shall continue for an initial term of _____________________ years. Lessee may at its option renew the Lease for an extended term of ______________________ years. Lessee shall exercise such renewal option by giving written notice of not less than thirty (30) days to Lessor.
Rent
For and during the initial term of the Lease, Lessee shall pay to Lessor annual rent of $_____________________ per year. The annual rent shall be payable in advance in equal monthly installments of $___________________ per month. The monthly payment shall be due and payable on the __________________ day of each calendar month at the following address ____________________________________________________________________ or at such other place designated by written notice from Lessor or Lessee. Any rent payment not made by the ____________________ day of the month shall be considered overdue and in addition to Lessor’s other remedies, Lessor may levy a late payment charge equal to _____________________ per month on any overdue amount.
Utilities
Unless otherwise expressly agreed in writing by Lessor, Lessee shall pay all utility charges relating to the Leased Premises during the term of this Lease.
Signs
Upon obtaining Lessor’s consent, Lessee shall have the right to place any signs which are permitted by applicable zoning ordinances and private restrictions on the Premises, at locations selected by Lessee. Lessor may refuse such consent if it is in Lessor’s opinion too large, deceptive, unattractive or otherwise inconsistent with or inappropriate to the Premises. Lessee shall repair all damage to the Leased Premises resulting from the removal of signs installed by Lessee.
Security Deposit
Prior to taking possession of the Premises, Lessee shall pay a security deposit in the amount of $ ___________________________ for the full and faithful performance by the Lessee of all the terms of this Lease. This security deposit will be refunded to Lessee after the expiration of this Lease, provided the Lessee has fully and faithfully carried out all of its obligations under this Agreement.
Alterations & Improvements
Lessee may, at its sole expense, redecorate the Premises and make such non-structural alterations and changes as Lessee shall deem expedient or necessary, provided, however, such alterations and changes shall neither impair the structural soundness nor diminish the value of the Premises. The Lessee may make structural alterations and additions to the Premises provided Lessee first obtains the consent of the Lessor in writing. The Lessor agrees that it shall not withhold such consent unreasonably.
Parking Space
Lessee is assigned parking space in the following manner: ________________________________________________________________________________________________________________________________________.
Use
Lessee shall use the premises for _________________________________ purposes only and for no other purpose without Lessor’s prior written consent. Notwithstanding the forgoing, Lessee shall not use the Premises for the purposes of storing, manufacturing or selling any explosives, flammables or other inherently dangerous substance, chemical, thing or device.
Quiet Possession
Lessor covenants and warrants that upon performance by Lessee of its obligations hereunder, Lessor will keep and maintain Lessee in exclusive, quiet, peaceable and undisturbed and uninterrupted possession of the Leased Premises during the term of this Lease.
Entry
Lessor shall have the right to enter upon the Premises at reasonable hours to inspect the same, provided Lessor shall not thereby unreasonably interfere with Lessee’s business on the Premises.
Repairs
Lessee shall at its own expenses make all necessary repairs to the Premises. Such repairs shall include routine repairs of floors, walls, ceilings, and other parts of the Premises damaged or worn through normal occupancy, except for major mechanical systems or the roof, subject to the obligations of the parties otherwise set forth in this Lease.
Termination
Either party may terminate this Agreement without cause by giving thirty (30) days written notice to the other party. Upon the expiration or earlier termination of this Agreement, Lessee shall return the Premises to Lessor in good repair, condition and working order, ordinary wear and tear resulting from proper use thereof alone excepted.
Insurance
For the term of this Agreement, Lessee shall maintain public liability insurance with limits of not less than one million dollars for injury or death from one accident and $250,000.00 property damage insurance, insuring Lessor and Lessee against injury to persons or damage to property on or about the Leased Premises. A copy of the policy or a certificate of insurance shall be delivered to Lessor on or before the commencement date and no such policy shall be cancellable without ten (10) days prior written notice to Lessor.
Damage and Destruction
In the event if the Premises or any part thereof is damaged by fire, casualty or structural defects that the same cannot be used for Lessee’s purposes, then Lessee shall have the right within ninety (90) days following damage to elect by notice to Lessor to terminate this Lease. In the event if such damage does not render the Leased Premises unusable for Lessee’s purposes, Lessor shall promptly repair such damage at the cost of the Lessor. Lessee shall be relieved from paying rent and other charges during any portion of the Lease term that the Leased Premises are inoperable or unfit for occupancy, or use, in whole or in part, for Lessee’s purposes.
Indemnity
Lessee shall indemnify Lessor against, and hold Lessor harmless from, any and all claims, actions, suits, proceedings, costs, expenses, damages and liabilities, including reasonable attorney’s fees and costs, arising out of, connected with, or resulting from Lessee’s use of the Premises, including without limitation the manufacture, selection, delivery, possession, use, operation, or return of the Premises.
Assignment and Subletting
Lessee shall not sublet the premises or assign this Agreement without the prior written consent of the Lessor. Any such attempt to sublet or assignment by Lessee shall be a breach of this Agreement and cause for immediate termination.
Notices
Any notice or other communication to be given under this Agreement shall be in writing and shall be sent to the parties at the following addresses:
Lessee
__________________________________
__________________________________
__________________________________
Lessor
__________________________________
__________________________________
__________________________________
Entire Agreement
This Agreement constitutes the entire agreement between the parties, and supersedes any earlier statement or understanding. No changes or additions to the terms of the Agreement shall be valid unless in writing and signed by both parties.
Governing Law
This Agreement will be governed by the laws of the state of __________________
AGREED TO this _____ day of _________, in _______________, by:
LESSOR LESSEE
_________________________ __________________________
[INSERT NAME AND TITLE] [INSERT NAME AND TITLE]