Commercial Lease Agreement

Background

1. This is a contract (referred to as “The Agreement”) to rent out commercial real estate on the parameters outlined below.
2. The Schedule 1 of this Agreement contains information on the Landlord, the Tenant, and the Premises.
3. The Landlord and Tenant shall be referred to as “The Parties” together.

The following pledges, conditions, and agreements are made in consideration of the Landlord letting and the Tenant renting the Premises by both parties.

Term

1.   At 12 o’clock noon on the lease start day and 12 o’clock on the lease end date, this agreement will enter into its Term. Schedule 1 specifies the Lease Start Date and Lease End Date.
2.   Any scheduled lengthy absences from the premises must be communicated to the landlord in advance by the tenant.
3.   The Parties may, by written agreement, extend the Term of this Agreement after the Lease End Date.

Commercial Use Only

4.   The landlord consents to leasing the property to the tenant solely for use as a place of business. The Tenant promises to refrain from using it for any other use, including but not limited to utilizing it as a residence.

Rent

5.   The rent will rise yearly at the rate specified in Schedule 1 for rent increases.
6.   Annual increases in the Rent will occur at the rate specified in Schedule 1.
7.   The first complete rent payment required by this Agreement is due on the date listed in Schedule 1 for the start of the lease. Weekends, holidays, or other special occasions won’t exempt the tenant from the terms of this agreement on timely rent payment.
8.   The Landlord may occasionally change the Rent Payment Details by providing the Tenant with a 7-day notice.
9.   Tenant shall pay a late charge equivalent to one twentieth (1/20) of the monthly rent payment for any payment that is not made within one day of the due date.

Holdover

10. The “Holdover Period” refers to any time that the Tenant retains possession of the Premises after the lease has ended. During this time, the Tenant is responsible for making lease payments to the Landlord at a rate that is 150% of the regular payment rate from the last rent period covered by this Agreement, prorated according to the actual number of holdover days.

Utilities

11.   Under the terms of this Agreement, the Landlord shall be responsible for the payment and ongoing provision of all utilities.

Maintenance

12. Throughout the duration of this Agreement, the Landlord must keep the Premises in good repair at all times.

Possession

13.   Throughout the term of this lease, the tenant has the right to possession. The tenant promises to give up ownership of the property and transfer it to the landlord at the conclusion of the tenancy period in the same condition as when they were first occupied, with the exception of normal wear and tear.
14.   Without a specific written agreement signed by both Parties, the Landlord shall not directly or indirectly, through any agent, employee, or other representative, lease any space within the property (aside from the Premises described by this Agreement), or permit the use or occupancy of any such space whose primary business activity is in competition with, or may cause, the Tenant’s primary business activity. The exclusive right to operate the Tenant’s main business on the land is granted by the Landlord under this agreement.

Eminent Domain

15.   If the Premises are taken by eminent domain, this Agreement is immediately null and invalid. The tenant will have the following rights to assert during the process:
16.   The value of the lease agreement.
17.   Revenue loss for the business.
18.   Relocation and moving expenses.

Quiet Enjoyment

16. The Tenant has the right to peaceful enjoyment of the Premises for the duration of this Agreement.

Cumulative Rights

17.   Except as expressly provided differently by applicable federal, state, or municipal law, the rights of the Parties under this Lease are cumulative and shall not be interpreted as exclusive.

Security Deposit

18.   The Tenant agrees to give the Landlord a deposit in the amount specified in Schedule 1 to cover cleaning and damage.
19.   Within 30 days of the lease’s end date, the landlord promises to return the deposit to the tenant, less any deductions. Within 30 days of the lease’s expiration date, the landlord must provide a written justification for any deduction.
20.   Only damages to the contents of the Premises that go above and beyond normal wear and tear are eligible for deductions from rent by the landlord.
21. Upon the Tenant’s written request, the Landlord will create an inventory of the items included inside the Premises, at the Landlord’s expense, listing their contents and conditions. Up to the Lease Start Date, the Tenant may request such a route.
22.   The parties agree to mediate any disputes over the Landlord’s deductions and to abide by the Mediator’s determination of what constitutes a fair deduction. The Parties agree to use the procedures of the American Arbitration Association to have a mediator appointed on their behalf if they are unable to reach agreement on a mediator for their dispute. Each party will pay their fair share of the mediation price.

Insurance

23.   For their respective interests in the Premises and the property there, the Parties shall each maintain the necessary insurance. The tenant’s insurance must exceed the minimum coverage amount listed in Schedule 1 for tenants. Any and all such policies shall include the Landlord as an extra insured party. Tenant must provide proof of current, appropriate insurance coverage from providers that the landlord deems to be at least somewhat acceptable. Before any cancellation of such policies, the insurer must provide the landlord written notice in advance. Additionally, the tenant is responsible for maintaining any additional insurance that the landlord deems necessary to safeguard his or her ownership rights in the premises. It is the tenant’s responsibility to keep its own property insured.
24.   On the Premises, Tenant must keep enough liability insurance. The tenant’s insurance must exceed the minimum coverage amount listed in Schedule 1 for tenants. Tenant must provide proof of current, appropriate insurance coverage from providers that the landlord deems to be at least somewhat acceptable. Before any cancellation of such policies, the insurer must provide the landlord written notice in advance.

Landlord Access to Premises

25.   The Landlord may access the Premises with 24 hours’ notice for any of the following reasons, subject to the Tenant’s permission, which may not be unreasonably withheld:
26.   Inspecting the premises
27.   Maintaining the premises
28.   Repairs that the Landlord is obligated to make 
29.   Providing necessary services 
30.   Showing the unit to prospective buyers, lessors, or employees
31.   The Landlord disclaims any responsibility for maintaining or watching over the Premises. In accordance with the law, Landlord may access the Premises without the Tenant’s permission in the event of an emergency.
32.   Landlord shall be granted access to the Premises during the last three months of this Agreement, or any extended Term of this Agreement, in order to post “To Let” signs and exhibit the Premises to potential future tenants.

Alterations or Improvements

28.   Any alteration or construction that may be necessary in order for the Tenant to use the Premises must be done at the Tenant’s cost.
29.   Additionally, Tenant may (at Tenant’s expense) build fixtures on the Premises that properly support its use for such purposes. Only with the landlord’s previous written authorization, which cannot be unreasonably refused, may such construction be conducted and such fittings be erected.
30.   Without the landlord’s previous written approval, the tenant is not permitted to put awnings or advertisements on any portion of the premises.
31.   At the conclusion of the Term, Tenant shall have the right to remove (or shall do so at Landlord’s request) such fixtures and shall leave the Premises essentially in the same condition as when this Agreement was signed.

Taxes

32.   The following method should be used to distribute taxes relating to the Premises or its use:
33.   Real estate taxes and assessments must be paid in full by the landlord for the premises.
34.   Personal Taxes: In addition to any applicable sales and/or use taxes that may be owed in connection with lease payments, the landlord is responsible for paying all personal taxes as well as any other fees that may be assessed against the property and are related to the use made by the tenant.

Termination upon Sale of Premises

33.   Despite any other clauses in this agreement, the landlord may end this one by giving the tenant a 28-day written notice that the premises have been sold.

Event of Default

34.   The Tenant will be in breach of this Agreement if any one or more of the following things happen (referred to as “the Event of Default”):
35.   The Rent is not paid by the Tenant to the Landlord in whole or during any applicable grace period.
36.   Any responsibility that the Tenant has under this Agreement or any comparable obligation under the Original Lease is not fulfilled by the Tenant.
37.   The Premises, in whole or in part, is destroyed by fire or another calamity brought on by the Tenant’s carelessness, willfulness, or that of the Tenant’s employee, family, agent, or visitor.
38.   The Tenant vacates the Premises whole or in part.
39.   The Tenant makes use of the property for any prohibited or unlawful activities.
40.   If the Tenant experiences any of the following events, a receiver may be appointed for the Tenant’s business: the Tenant becomes insolvent; commits an act of bankruptcy; becomes bankrupt; reaps the benefits of any laws that may be in effect for bankrupt or insolvent debtors; becomes involved in a voluntary or involuntary winding up, dissolution, or liquidation proceeding; or becomes bankrupt.
41.   any other situation that qualifies as a default under federal, state, or local law.

Remedies

35. The following remedies are available to the landlord in the event of any Event of Default:
36.   Any notice required by Federal, State, or Local Law to terminate the Agreement would result in the term being immediately forfeited and invalid.
37.   Any duty under this Agreement or the Original Lease that the Tenant has breached may be fulfilled by the Landlord, who may then seek compensation from the Tenant.
38.   The Landlord may re-enter the Premises or any portion of the Premises and, in the name of the whole, reclaim and enjoy everything inside the Premises as it did in its previous state.
39.   Any additional remedy that is permitted by federal, state, or local law.
40.   The Landlord’s exercise of one right or remedy will not prevent the Landlord from exercising further rights or remedies in the future.
41.   All of the parties’ duties under this Agreement will cease upon the expiration, termination, or cancellation of the Original Lease or this Agreement.
42.   Upon termination, ownership of any improvements still on the Premises shall transfer to the Landlord, who will receive them free and clear of any liens.

Governing Law and Jurisdiction

39.It is the intention of the parties to this agreement that the tenancy created thereby, the performance hereunder, and all actions and special proceedings hereunder shall be construed and governed, without regard to the jurisdiction in which any action or special proceeding may be brought, by the laws of the State of Jurisdiction set out in Schedule 1 and not by the laws of any other forum.

Severability

40.   It is the intention of the parties to this agreement that the tenancy created thereby, the performance hereunder, and all actions and special proceedings hereunder shall be construed and governed, without regard to the jurisdiction in which any action or special proceeding may be brought, by the laws of the State of Jurisdiction set out in Schedule 1 and not by the laws of any other forum.
41. The Agreement shall remain in full force and effect to the fullest extent permitted by applicable law.