Fillable Printable Commercial Lease Agreement - Kentucky

Commercial Lease Agreement - Kentucky

COMMERICAL LEASE AGREEMENT

DISCLAIMER:

Prior to using this Sample Commercial Lease Agreement form, the Kentucky Real Estate

Commission strongly advises that the parties consult with their attorneys. Commercial

real estate transactions are complex, and each agreement should be tailored to the needs

of the specific property involved. Thus, the Commission strongly recommends the use

and consultation of attorneys prior to entering into one of these agreements.

Revised April 2009

THIS FORM HAS BEEN APPROVED BY THE KENTUCKY REAL ESTATE COMMISSION.

(THIS IS A LEGALLY BINDING CONTRACT. IF YOU DO NOT FULLY UNDERSTAND THE

TERMS OF THIS CONTRACT, CONTACT AN ATTORNEY.)

(Note that all changes to this contract must be initialed, dated, and timed to comply with state license

law.)

COMMERCIAL LEASE AGREEMENT

This Commercial Lease Agreement (“Lease”) is made and effective this _____ day of

_____________, 2_____, by and between ___________________ (“Landlord”) and

____________________ (“Tenant”).

Landlord is the owner of land and improvements commonly known and numbered as

________________________________________________________ (address) and

legally described as follows (the “Building”): (insert legal description)

________________________________________________________________________

Landlord makes available for lease a portion of the Building designated as

________________________________________________________________________

(the “Leased Premises”).

Landlord desires to lease the Leased Premises to Tenant, and Tenant desires to lease the

Leased Premises from Landlord for the term, at the rental and upon the covenants,

conditions and provisions herein set forth.

THEREFORE, in consideration of the mutual promises herein, contained and other

good and valuable consideration, it is agreed:

1. TERM

A. Landlord hereby leases the Leased Premise to Tenant, and Tenant hereby leases

the same from Landlord, for an “Initial Term” beginning ________________________

(insert date) and ending __________________________ (insert date). Landlord shall

use its best efforts to give Tenant possession as nearly as possible at the beginning of the

Lease term. If Landlord is unable to timely provide the Lease Premises, rent shall abate

for the period of delay. Tenant shall make no other claim against Landlord for any such

delay.

B. Tenant may renew the Lease for one extended term of ______________________

(insert renewal term). Tenant shall exercise such renewal option, if at all; by giving

written notice to Landlord not less than ninety (90) days prior to the expiration of the

Initial Term. The renewal term shall be at the rental set forth below and otherwise upon

the same covenants, conditions and provisions as provided in this Lease.

2. RENTAL

A. Tenant shall pay to Landlord during the Initial Term rental of

___________________ (insert amount) per year, payable in installments of

$___________ per month. Each installment payment shall be due in advance on the first

day of each calendar month during the lease term to Landlord at

_________________________________ (insert payment location) or at such other place

designated by written notice from Landlord or Tenant. The rental payment amount for

any partial calendar months included in the lease term shall be prorated on a daily basis.

Tenant shall also pay to Landlord a “Security Deposit” in the amount of $____________.

B. The rental for any renewal lease term, if created as permitted under this Lease,

shall be $_____________________ per year payable in installments of $_____________

per month.

3. USE

Permitted use:

________________________________________________________________________

Notwithstanding the forgoing, Tenant shall not use the Leased Premises for the purposes

of storing, manufacturing or selling any explosives, flammables or other inherently

dangerous substance, chemical, thing or device.

4. SUBLEASE AND ASSIGNMENT

Tenant shall have the right without Landlord’s consent, to assign this Lease to a

corporation with which Tenant may merge or consolidate, to any subsidiary of Tenant, to

any corporation under common control with Tenant, or to a purchaser of substantially all

of Tenant’s assets. Except as set forth above, Tenant shall not sublease all or any part of

the Leased Premises, or assign this Lease in whole or in part without Landlord’s consent,

such consent not to be unreasonably withheld or delayed.

5. REPAIRS

During the Lease term, Tenant shall make, at Tenant’s expense, all necessary repairs to

the Leased Premises. Repairs shall include such items as routine repairs of floors, walls,

ceilings, and other parts of the Leased Premises damaged or worn through normal

occupancy, except for major mechanical systems or the roof, subject to the obligation of

the parties otherwise set forth in this Lease.

6. ALTERATIONS AND IMPROVEMENTS

Tenant, at Tenant’s expense, shall have the right following Landlord’s consent to

remodel, redecorate, and make additions, improvements and replacements of and to all or

any part of the Leased Premises from time to time as Tenant may deem desirable,

provided the same are made in a workmanlike manner and utilizing good quality

materials. Tenant shall have the right to place and install personal property, trade

fixtures, equipment and other temporary installations in and upon the Leased Premises,

and fasten the same to the premises. All personal property, equipment, machinery, trade

fixtures and temporary installations, whether acquired by Tenant at the commencement of

the Lease term or placed or installed on the Leased Premises by Tenant thereafter, shall

remain Tenant’s property free and clear of any claim by Landlord. Tenant shall have the

right to remove the same at any time during the term of this Lease provided that all

damage to the Leased Premises caused by such removal shall be repaired by Tenant at

Tenant’s expense.

7. PROPERTY TAXES

Landlord shall pay, prior to delinquency, all general real estate taxes and installments of

special assessments coming due during the Lease term on the Leased Premises, and all

personal property taxes with respect to Landlord’s personal property, if any, on the

Leased Premises. Tenant shall be responsible for paying all personal property taxes with

respect to Tenant’s personal property at the Leased Premises.

8. INSURANCE

A. If the Leased Premises or any other party of the Building is damaged by fire or

other casualty resulting from any act or negligence of Tenant or any of Tenant’s agents,

employees or invitees, rent shall not be diminished or abated while such damages are

under repair, and Tenant shall be responsible for the costs of repair not covered by

insurance.

B. Landlord shall maintain fire and extended coverage insurance on the Building and

the Leased Premises in such amounts as Landlord shall deem appropriate. Tenant shall

be responsible, at its expense, for fire and extended coverage insurance on all of its

personal property, including removable trade fixtures, located in the Leased Premises.

C. Tenant and Landlord shall, each at its own expense, maintain a policy or policies

of comprehensive general liability insurance with respect to the respective activities of

each in the Building with the premiums thereon fully paid on or before the due date,

issued by and binding upon some insurance company approved by Landlord, such

insurance to afford minimum protection of not less than $1,000,000 combined single

limit coverage of bodily injury, property damage or combination thereof. Landlord shall

be listed as an additional insured on Tenant’s policy or policies of comprehensive general

liability insurance, and Tenant shall provide Landlord with current Certificates of

Insurance evidencing Tenant’s compliance with this Provision. Tenant shall obtain the

agreement of Tenant’s insurers to notify Landlord that a policy is due to expire at least

ten (10) days prior to such expiration. Landlord shall not be required to maintain

insurance against thefts within the Leased Premises or the Building.

9. UTILITIES

Tenant shall pay all charges for water, sewer, gas electricity, telephone and other services

and utilities used by Tenant on the Leased Premises during the term of this Lease unless

otherwise expressly agreed in writing by Landlord. In the event that any utility or service

provided to the Leased Premises is not separately metered, Landlord shall pay the amount

due and separately invoice Tenant for Tenant’s pro rata share of the charges. Tenant

shall pay such amounts within fifteen (15) days of the date of invoice. Tenant

acknowledges that the Leased Premises are designed to provide standard office use

electrical facilities and standard office lighting. Tenant shall not sue any equipment or

devices that utilize excessive electrical energy or which may, in Landlord’s reasonable

opinion, overload the wiring or interfere with electrical services to other tenants.

10. SIGNS

Following Landlord’s consent, Tenant shall have the right to place on the Leased

Premises, at location selected by Tenant, any signs which are permitted by applicable

zoning ordinances and private restrictions. Landlord may refuse consent to any proposed

signage that is in Landlord’s opinion too large, deceptive, unattractive or otherwise

inconsistent with or inappropriate to the Leased Premises or use of any other tenant.

Landlord shall assist and cooperate with Tenant in obtaining any necessary permission

from governmental authorities or adjoining owners and occupants for Tenant to place or

construct the foregoing signs. Tenant shall repair all damage to the Leased Premises

resulting from the removal of signs installed by Tenant.

11. ENTRY

Landlord shall have the right to enter upon the Leased Premises at reasonable hours to

inspect the same, provided Landlord shall not thereby unreasonably interfere with

Tenant’s business on the Leased Premises.

12. PARKING

During the term of this Lease, Tenant shall have the non-exclusive use in common with

Landlord, other tenants of the Building, their guests and invitees, of the non-reserved

common automobile parking areas, driveways, and footways, subject to rules and

regulations for the use thereof as prescribed from time to time by Landlord. Landlord

reserves the right to designate parking areas within the Building or in reasonable

proximity thereto, for Tenant and Tenant’s agents and employees. Tenant shall provide

Landlord with a list of all license number for the cars owned by Tenant, its agents and

employees. Separated structured parking, if any, located about the Building is reserved

for tenants of the Building who rent such parking spaces.

Tenant hereby leases from Landlord _______ spaces in such structured parking area,

such spaces to be on a first come-first served basis. In consideration of the leasing to

Tenant of such spaces, Tenant shall pay a monthly rental of $_________ per space

throughout the term of the Lease. Such rental shall be due and payable each month

without demand at the time set herein for the payment of other monthly rentals, in

addition to such other rentals.

13. BUILDING RULES

Tenant will comply with the rules of the Building adopted and altered by Landlord from

time to time and will cause all of its agents, employees, invitees and visitors to do so; all

changes to such rules will be sent by Landlord to Tenant in writing. The initial rules for

the Building are attached hereto as Exhibit A and incorporated herein for all purposes.

14. DAMAGE AND DESTRUCTION

Subject to Paragraph 8 A as stated above, if the Leased Premises or any part thereof or

any appurtenance thereto is so damaged by fire, casualty or structural defects that the

same cannot be used for Tenant’s purposes, then Tenant shall have the right within ninety

(90) days following damage to elect by notice to Landlord to terminate this Lease as of

the date of such damage. In the even of minor damage to any part of the Leased

Premises, and if such damage does not render the Leased Premises unusable for Tenant’s

purposes, Landlord shall promptly repair such damage at the cost of the Landlord. In

making the repairs called for in this Paragraph, Landlord shall not be liable for any delays

resulting from strikes, governmental restrictions, inability to obtain necessary materials or

labor or other matters which are beyond the reasonable control of Landlord.

15. DEFAULT

If default shall at any time be made by Tenant in the payment of rent when due to

Landlord as herein provided, and if said default shall continue for fifteen (15) days after

written notice thereof shall have been given to Tenant by Landlord, or if default shall be

made in any of the other covenants or conditions to be kept, observed and performed by

Tenant, and such default shall continue for thirty (30) days after notice thereof in writing

to Tenant by Landlord without correction thereof then having been commenced and

Tenant 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 Tenant’s purposes. Rentals and other charges paid in advance for

any such periods shall be credited on the next ensuing payments, if any, but if no further

payments are to be made, any such advance payments shall be refunded to Tenant. The

provisions of this Paragraph extend not only to the matters aforesaid, but also to any

occurrence which is beyond Tenant’s reasonable control and which renders the Leased

Premises, or any appurtenance thereto, inoperable or unfit for occupancy or use, in whole

or in part, for Tenant’s purposes.

thereafter diligently prosecuted, Landlord may reenter said premises. Landlord shall

have, in addition to the remedy above provided, any other right or remedy available to

Landlord on account of any Tenant default, either in law or equity. Landlord shall use

reasonable efforts to mitigate its damages.

16. QUIET POSSESSION

Landlord covenants and warrants that upon performance by Tenant of its obligations

hereunder, Landlord will keep and maintain Tenant in exclusive, quiet, peaceable and

undisturbed and uninterrupted possession of the Leased Premises during the term of this

Lease.

17. CONDEMNATION

If any legally, constituted authority condemns the Building or such part thereof which

shall make the Leased Premises unsuitable for leasing, this Lease shall cease when the

public authority takes possession, and Landlord and Tenant shall account for rental as of

that date. Such termination shall be without prejudice to the rights of either party to

recover compensation from the condemning authority for any loss or damage caused by

the condemnation. Neither party shall have any rights in or to any award made to the

other by the condemning authority.

18. SUBORDINATION

In the event that Tenant should fail to execute any instrument of subordination herein

required to be executed by Tenant promptly as requested, Tenant herby irrevocably

constitutes Landlord as its attorney-in-fact to execute such instrument in Tenant’s name,

place and stead, it being agreed that such power is one coupled with an interest. Tenant

agrees that it will from time to time upon request by Landlord execute and deliver to such

person as Landlord shall request a statement in recordable form certifying that this Lease

is in full force and effect (or if there have been modifications, that the same is in full

force and effect as so modified), stating the dates to which rent and other charges payable

under this Lease have been paid, stating the dates to which rent and other charges payable

under this Lease have been paid, stating that Landlord is not in default hereunder (or if

Tenant accepts this Lease subject and subordinate to any mortgage, deed of trust or other

lien presently existing or hereafter arising upon the Leased Premises, or upon the

Building and to any renewals, refinancing and extensions thereof, but Tenant agrees that

any such mortgagee shall have the right at any time to subordinate such mortgage, deed

of trust or other lien to this Lease on such terms and subject to such conditions as such

mortgagee may deem appropriate in its discretion. Landlord is hereby irrevocably vested

with full power and authority to subordinate this Lease to any mortgage, deed of trust or

other lien now existing or hereafter placed upon the Leased Premises of the Building, and

Tenant agrees upon demand to execute such further instruments subordinating this Lease

or atoning to the holder of any such liens as Landlord may request.

Tenant alleges a default stating the nature of such alleged default) and further stating such

other matters as Landlord shall reasonably require.

19. SECURITY DEPOSIT

20. NOTICE

Any notice required or permitted under this Lease shall be deemed sufficiently given or

served if sent by United States certified mail, return receipt requested, addressed as

follows:

Landlord’s address:

__________________________

Tenant’s address:

__________________________

Landlord and Tenant shall each have the right from time to time to change the place

notice is to be given under this paragraph by written notice thereof to the other party.

21. BROKERS

Tenant represents that Tenant was not shown the Premises by any real estate broker or

agent and that Tenant has not otherwise engaged in, any activity which could form the

The Security Deposit shall be held by Landlord without liability for inters and as security

for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it

being expressly understood that the Security Deposit shall not be considered an advance

payment of rental or a measure of Landlord’s damages in case of default by Tenant.

Unless otherwise provided by mandatory non-waivable law or regulation, may from time

to time, without prejudice to any other remedy, use the Security Deposit to the extent

necessary to make good any arrearages of rent or to satisfy any other covenant or

obligation of Tenant hereunder. Following any such application of the Security Deposit,

Tenant shall pay to Landlord on demand the amount so applied in order to restore the

Security Deposit to its original amount. If Tenant is not in default at the termination of

this Lease, the balance of the Security Deposit remaining after any such application shall

be returned by Landlord to Tenant. If Landlord transfers its interest in the Premises

during the term of this Lease, Landlord may assign the Security Deposit to the transferee

and thereafter shall have no further liability for the return of such Security Deposit.

basis for a claim for real estate commission, brokerage fee, finder’s fee or other similar

charge, in connection with this Lease.

22. WAIVER

No waiver of any default of Landlord or Tenant hereunder shall be implied from any

omission to take any action on account of such default if such default persists or is

repeated, and no express waiver shall affect any default other than the default specified in

the express waiver and that only for the time and to the extent therein stated. One or more

waivers by Landlord or Tenant shall not be construed as a waiver of a subsequent breach

of the same covenant, term or condition.

23. MEMORANDUM OF LEASE

The parties hereto contemplate that this Lease should not and shall not be filed for record,

but in lieu thereof, at the request of either party, Landlord and Tenant shall execute a

Memorandum of Lease to be recorded for the purpose of giving record notice of the

appropriate provisions of this Lease.

24. HEADINGS

The headings used in this Lease are for convenience of the parties only and shall not be

considered in interpreting the meaning of any provision of this Lease.

25. SUCCESSORS

The provisions of this Lease shall extend to and b binding upon Landlord and Tenant and

their respective legal representatives, successors and assigns.

26. CONSENT

Landlord shall not unreasonably withhold or delay its consent with respect to any matter

for which Landlord’s consent is required or desirable under this Lease.

27. PERFORMANCE

If there is a default with respect to any of Landlord’s covenants, warranties or

representations under this Lease, and if the default continues more than fifteen (15) days

after notice in writing from Tenant to Landlord specifying the default, Tenant may, at its

option and without affecting any other remedy hereunder, cure such default and deduct

the cost thereof from the next accruing installment or installments of rent payable with

interest thereon at a rate equal to the lessor of twelve percent (12%) per annum or the

then highest lawful rate. If this Lease terminates prior to Tenant’s receiving full

reimbursement, Landlord shall pay the non-reimbursed balance plus accrued interest to

Tenant on demand.

28. COMPLIANCE WITH LAW

Tenant shall comply with all laws, orders, ordinances and other public requirements now

or hereafter pertaining to Tenant’s use of the Leased Premises. Landlord shall comply

with all laws, orders, ordinances and other public requirements now or hereafter affecting

the Leased Premises.

29. FINAL AGREEMENT

This Agreement terminates and supersedes all prior understandings or agreements on the

subject matter hereof. This Agreement may be modified only by a further writing that is

duly executed by both parties.

IN WITNESS WEREOF, the parties have executed this Lease as of the day and year

listed below.

Landlord:

_____________________________ _________

Landlord Date/Time

Tenant:

_____________________________ __________

Tenant Date/Time