Fillable Printable Standard Free Lease Agreement
Fillable Printable Standard Free Lease Agreement
Standard Free Lease Agreement
SAMPLE COMMERCIAL LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into [DATE], by and between
[NAME], whose address is [ADDRESS], (hereinafter referred to as
"Landlord"), and [NAME], whose address is [ADDRESS], (hereinafter referred
to as "Tenant").
ARTICLE I - GRANT OF LEASE
Landlord, in consideration of the rents to be paid and the covenants and agreements to be
performed and observed by the Tenant, does hereby lease to the Tenant and the Tenant
does hereby lease and take from the Landlord the property described in Exhibit "A"
attached hereto and by reference made a part hereof (the "Leased Premises"), together
with, as part of the parcel, all improvements located thereon.
ARTICLE II - LEASE TERM
Section l. Total Term of Lease. The term of this Lease shall begin on the commencement
date, as defined in Section 2 of this Article II, and shall terminate on [DATE].
Section 2. Commencement Date. The "Commencement Date" shall mean the date on
which the Tenant shall commence to conduct business on the Leased remised, so long as
such date is not in excess of sixty (60) days subsequent to execution hereof.
ARTICLE III - EXTENSIONS
The parties hereto may elect to extend this Agreement upon such terms and conditions as
may be agreed upon in writing and signed by the parties at the time of any such
extension.
ARTICLE IV - DETERMINATION OF RENT
The Tenant agrees to pay the Landlord and the Landlord agrees to accept, during the term
hereof, at such place as the Landlord shall from time to time direct by notice to the
Tenant, rent at the following rates and times:
Section 1. Annual Rent. Annual rent for the term of the Lease shall be [AMOUNT]
Dollars ($[#]), plus applicable sales tax.
Section 2. Payment of Yearly Rent. The annual rent shall be payable in advance in equal
monthly installments of one-twelfth (1/12th) of the total yearly rent, which shall be
[AMOUNT] Dollars ($[#]), on the first day of each and every calendar month during the
term hereof, and prorata for the
fractional portion of any month, except that on the first day of the
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calendar month immediately following the Commencement Date, the Tenant
shall also pay to the Landlord rent at the said rate for any portion of the
preceding calendar month included in the term of this Lease.
Reference to yearly rent hereunder shall not be implied or construed to the
effect that this Lease or the obligation to pay rent hereunder is from year
to year, or for any term shorter than the existing Lease term, plus any
extensions as may be agreed upon.
A late fee in the amount of [AMOUNT] Dollars ($[#]) shall be assessed if
payment is not postmarked or received by Landlord on or before the tenth
day of each month.
ARTICLE V - SECURITY DEPOSIT
The Tenant has deposited with the Landlord the sum of [AMOUNT] Dollars
($[#]) as security for the full and faithful performance by the Tenant of
all the terms of this lease required to be performed by the Tenant. Such
sum shall be returned to the Tenant after the expiration of this lease,
provided the Tenant has fully and faithfully carried out all of its terms.
In the event of a bona fide sale of the property of which the leased
premises are a part, the Landlord shall have the right to transfer the
security to the purchaser to be held under the terms of this lease, and the
Landlord shall be released from all liability for the return of such
security to the Tenant.
ARTICLE VI - TAXES
Section l. Personal Property Taxes. The Tenant shall be liable for all
taxes levied against any leasehold interest of the Tenant or personal
property and trade fixtures owned or placed by the Tenant in the Leased
Premises.
Section 2. Real Estate Taxes. During the continuance of this lease
Landlord shall deliver to Tenant a copy of any real estate taxes and
assessments against the Leased Property. From and after the Commencement
Date, the Tenant shall pay to Landlord not later than twenty-one (21) days
after the day on which the same may become initially due, all real estate
taxes and assessments applicable to the Leased Premises, together with any
interest and penalties lawfully imposed thereon as a result of Tenant's
late payment thereof, which shall be levied upon the Leased Premises during
the term of this Lease.
Section 3. Contest of Taxes. The Tenant, at its own cost and expense,
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may, if it shall in good faith so desire, contest by appropriate
proceedings the amount of any personal or real property tax. The Tenant
may, if it shall so desire, endeavor at any time or times, by appropriate
proceedings, to obtain a reduction in the assessed valuation of the Leased
Premises for tax purposes. In any such event, if the Landlord agrees, at
the request of the Tenant, to join with the Tenant at Tenant's expense in
said proceedings and the Landlord agrees to sign and deliver such papers
and instruments as may be necessary to prosecute such proceedings, the
Tenant shall have the right to contest the amount of any such tax and the
Tenant shall have the right to withhold payment of any such tax, if the
statute under which the Tenant is contesting such tax so permits.
Section 4. Payment of Ordinary Assessments. The Tenant shall pay all
assessments, ordinary and extraordinary, attributable to or against the
Leased Premises not later than twenty-one (21) days after the day on which
the same became initially due. The Tenant may take the benefit of any law
allowing assessments to be paid in installments and in such event the
Tenant shall only be liable for such installments of assessments due during
the term hereof.
Section 5. Changes in Method of Taxation. Landlord and Tenant further
agree that if at any time during the term of this Lease, the present method
of taxation or assessment of real estate shall be changed so that the whole
or any part of the real estate taxes, assessment or governmental
impositions now levied, assessed or imposed on the Leased Premises shall,
in lieu thereof, be assessed, levied, or imposed wholly or in part, as a
capital levy or otherwise upon the rents reserved herein or any part
thereof, or as a tax, corporation franchise tax, assessment, levy or
charge, or any part thereof, measured by or based, in whole or in part,
upon the Leased Premises or on the rents derived therefrom and imposed upon
the Landlord, then the Tenant shall pay all such taxes, assessments,
levies, impositions, or charges. Nothing contained in this Lease shall
require the Tenant to pay an estate, inheritance, succession, capital levy,
corporate franchise, gross receipts, transfer or income tax of the
Landlord, nor shall any of the same be deemed real estate taxes as defined
herein unless the same be imposed in lieu of the real estate taxes.
ARTICLE VII - CONSTRUCTION AND COMPLETION
Section 1. Improvements by TENANT. Tenant may have prepared plans and
specifications for the construction of improvements, and, if so, such plans
and specifications are attached hereto as Exhibit "B" and incorporated
herein by reference. Tenant shall obtain all certificates, permits,
licenses and other authorizations of governmental bodies or authorities
which are necessary to permit the construction of the improvements on the
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demised premises and shall keep the same in full force and effect at
Tenant's cost.
Tenant shall negotiate, let and supervise all contracts for the furnishing
of services, labor, and maerials for the construction of the improvements
on the demised premises at its cost. All such contracts shall require the
contracting party to guarantee performance and all workmanship and
materials installed by it for a period of one year following the date of
completion of construction. Tenant shall cause all contracts to be fully
and completely performed in a good and workmanlike manner, all to the
effect that the improvements shall be fully and completely constructed and
installed in accordance with good engineering and construction practice.
During the course of construction, Tenant shall, at its cost, keep in full
force and effect a policy of builder's risk and liability insurance in a
sum equal, from time to time, to three times the amount expended for
construction of the improvements. All risk of loss or damage to the
improvements during the course of construction shall be on Tenant with the
proceeds from insurance thereon payable to Landlord.
Upon completion of construction, Tenant shall, at its cost, obtain an
occupancy permit and all other permits or licenses necessary for the
occupancy of the improvements and the operation of the same as set out
herein and shall keep the same in force.
Nothing herein shall alter the intent of the parties that Tenant shall be
fully and completely responsible for all aspects pertaining to the
construction of the improvements of the demised premises and for the
payment of all costs associated therewith. Landlord shall be under no duty
to investigate or verify Tenant's compliance with the provision herein.
Moreover, neither Tenant nor any third party may construe the permission
granted Tenant hereunder to create any responsibility on the part of the
Landlord to pay for any improvements, alterations or repairs occasioned by
the Tenant. The Tenant shall keep the property free and clear of all liens
and, should the Tenant fail to do so, or to have any liens removed from the
property within fourteen (14) days of notification to do so by the Landlord
, in addition to all other remedies available to the Landlord , the Tenant
shall indemnify and hold the Landlord harmless for all costs and expenses,
including attorney's fees, occasioned by the Landlord in having said lien
removed from the property; and, such costs and expenses shall be billed to
the Tenant monthly and shall be payable by the Tenant with that month's
regular monthly rental as additional reimburseable expenses to the Landlord
by the Tenant.
Section 2. Utilities. Tenant shall pay for all water, sanitation, sewer,
electricity, light, heat, gas, power, fuel, janitorial, and other services
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incident to Tenant's use of the Leased Premises, whether or not the cost
thereof be a charge or imposition against the Leased Premises.
ARTICLE VIII - OBLIGATIONS FOR REPAIRS
Section 1. LANDLORD'S Repairs. Subject to any provisions herein to the
contrary, and except for maintenance or replacement necessitated as the
result of the act or omission of sublessees, licensees or contractors, the
Landlord shall be required to repair only defects, deficiencies, deviations
or failures of materials or workmanship in the building. The Landlord shall
keep the Leased Premises free of such defects, deficiencies, deviations or
failures during the first twelve (12) months of the term hereof.
Section 2. TENANT'S Repairs. The Tenant shall repair and maintain the
Leased Premises in good order and condition, except for reasonable wear and
tear, the repairs required of Landlord pursuant hereto, and maintenance or
replacement necessitated as the result of the act or omission or negligence
of the Landlord, its employees, agents, or contractors.
Section 3. Requirements of the Law. The Tenant agrees that if any
federal, state or municipal government or any department or division
thereof shall condemn the Leased Premises or any part thereof as not in
conformity with the laws and regulations relating to the construction
thereof as of the commencement date with respect to conditions latent or
otherwise which existed on the Commencement Date, or, with respect to items
which are the Landlord's duty to repair pursuant to Section 1 and 3 of this
Article; and such federal, state or municipal government or any other
department or division thereof, has ordered or required, or shall hereafter
order or require, any alterations or repairs thereof or installations and
repairs as may be necessary to comply with such laws, orders or
requirements (the validity of which the Tenant shall be entitled to
contest); and if by reason of such laws, orders or the work done by the
Landlord in connection therewith, the Tenant is deprived of the use of the
Leased Premises, the rent shall be abated or adjusted, as the case may be,
in proportion to that time during which, and to that portion of the Leased
Premises of which, the Tenant shall shall be deprived as a result thereof,
and the Landlord shall be obligated to make such repairs, alterations or
modifications at Landlord's expense.
All such rebuilding, altering, installing and repairing shall be done in
accordance with Plans and Specifications approved by the Tenant, which
approval shall not be unreasonably withheld. If, however, such
condemnation, law, order or requirement, as in this Article set forth,
shall be with respect to an item which shall be the Tenant's obligation to
repair pursuant to Section 2 of this Article VII or with respect to
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Tenant's own costs and expenses, no abatement or adjustment of rent shall
be granted; provided, however, that Tenant shall also be entitled to
contest the validity thereof.
Section 4. TENANT'S Alterations. The Tenant shall have the right, at its
sole expense, from time to time, to redecorate the Leased Premises and to
make such non-structural alterations and changes in such parts thereof as
the Tenant shall deem expedient or necessary for its purposes; provided,
however, that such alterations and changes shall neither impair the
structural soundness nor diminish the value of the Leased Premises. The
Tenant may make structural alterations and additions to the Leased Premises
provided that Tenant has first obtained the consent thereto of the Landlord
in writing. The Landlord agrees that it shall not withhold such consent
unreasonably. The Landlord shall execute and deliver upon the request of
the Tenant such instrument or instruments embodying the approval of the
Landlord which may be required by the public or quasi public authority for
the purpose of obtaining any licenses or permits for the making of such
alterations, changes and/or installations in, to or upon the Leased
Premises and the Tenant agrees to pay for such licenses or permits.
Section 5. Permits and Expenses. Each party agrees that it will procure
all necessary permits for making any repairs, alterations, or other
improvements for installations, when applicable. Each Party hereto shall
give written notice to the other party of any repairs required of the other
pursuant to the provisions of this Article and the party responsible for
said repairs agrees promptly to commence such repairs and to prosecute the
same to completion diligently, subject, however, to the delays occasioned
by events beyond the control of such party.
Each party agrees to pay promptly when due the entire cost of any work done
by it upon the Leased Premises so that the Leased Premises at all times
shall be free of liens for labor and materials. Each party further agrees
to hold harmless and indemnify the other party from and against any and all
injury, loss, claims or damage to any person or property occasioned by or
arising out of the doing of any such work by such party or its employees,
agents or contractors. Each party further agrees that in doing such work
that it will employ materials of good quality and comply with all
governmental requirements, and perform such work in a good and workmanlike
manner.
ARTICLE IX - TENANT'S COVENANTS
Section 1. TENANT's Covenants. Tenant covenants and agrees as follows:
a. To procure any licenses and permits required for any use made of the
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Leased Premises by Tenant, and upon the expiration or termination of this
Lease, to remove its goods and effects and those of all persons claiming
under it, and to yield up peaceably to Landlord the Leased Premises in good
order, repair and condition in all respects; excepting only damage by fire
and casualty covered by Tenant's insurance coverage, structural repairs
(unless Tenant is obligated to make such repairs hereunder) and reasonable
wear and tear;
b. To permit Landlord and its agents to examine the Leased Premises at
reasonable times and to show the Leased Premises to prospective purchasers
of the Building and to provide Landlord, if not already available, with a
set of keys for the purpose of said examination, provided that Landlord
shall not thereby unreasonably interfere with the conduct of Tenant's
business;
c. To permit Landlord to enter the Leased Premises to inspect such
repairs, improvements, alterations or additions thereto as may be required
under the provisions of this Lease. If, as a result of such repairs,
improvements, alterations, or additions, Tenant is deprived of the use of
the Leased Premises, the rent shall be abated or adjusted, as the case may
be, in proportion to that time during which, and to that portion of the
Leased Premises of which, Tenant shall be deprived as a result thereof.
ARTICLE X - INDEMNITY BY TENANT
Section l. Indemnity and Public Liability. The Tenant shall save Landlord
harmless and indemnify Landlord from all injury, loss, claims or damage to
any person or property while on the Leased Premises, unless caused by the
willful acts or omissions or gross negligence of Landlord, its employees,
agents, licensees or contractors. Tenant shall maintain, with respect to
the Leased Premises, 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 Landlord and Tenant 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
Landlord on or before the commencement date and no such policy shall be
cancellable without ten (10) days prior written notice to Landlord.
ARTICLE XI - USE OF PROPERTY BY TENANT
Section 1. Use. The Leased Premises may be occupied and used by Tenant
exclusively as a [DESCRIBE], to be known as a [DESCRIBE] .
Nothing herein shall give Tenant the right to use the property for any
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other purpose or to sublease, assign, or license the use of the property to
any sublessee, assignee, or licensee, which or who shall use the property
for any other use.
ARTICLE XII - SIGNAGE
Section l. Exterior Signs. Tenant shall have the right, at its sole risk
and expense and in conformity with applicable laws and ordinances, to erect
and thereafter, to repair or replace, if it shall so elect signs on any
portion of the Leased Premises, providing that Tenant shall remove any such
signs upon termination of this lease, and repair all damage occasioned
thereby to the Leased Premises.
Section 2. Interior Signs. Tenant shall have the right, at its sole risk
and expense and in conformity with applicable laws and ordinances, to
erect, maintain, place and install its usual and customary signs and
fixtures in the interior of the Leased Premises.
ARTICLE XIII - INSURANCE
Section 1. Insurance Proceeds. In the event of any damage to or
destruction of the Leased Premises, Tenant shall adjust the loss and settle
all claims with the insurance companies issuing such policies. The parties
hereto do irrevocably assign the proceeds from such insurance policies for
the purposes hereinafter stated to any institutional first mortgagee or to
Landlord and Tenant jointly, if no institutional first mortgagee then holds
an interest in the Leased Premises. All proceeds of said insurance shall be
paid into a trust fund under the control of any institutional first
mortgagee, or of Landlord and Tenant if no institutional first mortgagee
then holds an interest in the Leased Premises, for repair, restoration,
rebuilding or replacement, or any combination thereof, of the Leased
Premises or of the improvements in the Leased Premises. In case of such
damage or destruction, Landlord shall be entitled to make withdrawals from
such trust fund, from time to time, upon presentation of:
a. bills for labor and materials expended in repair, restoration,
rebuilding or replacement, or any combination thereof;
b. Landlord's sworn statement that such labor and materials for which
payment is being made have been furnished or delivered on site; and
c. the certificate of a supervising architect (selected by Landlord and
Tenant and approved by an institutional first mortgagee, if any, whose fees
will be paid out of said insurance proceeds) certifying that the work being
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paid for has been completed in accordance with the Plans and Specifications
previously approved by Landlord , Tenant and any institutional first
mortgagee in a first class, good and workmanlike manner and in accordance
with all pertinent governmental requirements.
Any insurance proceeds in excess of such proceeds as shall be necessary for
such repair, restoration, rebuilding, replacement or any combination
thereof shall be the sole property of Landlord subject to any rights
therein of Landlord's mortgagee, and if the proceeds necessary for such
repair, restoration, rebuilding or replacement, or any combination thereof
shall be inadequate to pay the cost thereof, Tenant shall suffer the
deficiency.
Section 2. Subrogation. Landlord and Tenant hereby release each other, to
the extent of the insurance coverage provided hereunder, from any and all
liability or responsibility (to the other or anyone claiming through or
under the other by way of subrogation or otherwise) for any loss to or
damage of property covered by the fire and extended coverage insurance
policies insuring the Leased Premises and any of Tenant's property, even if
such loss or damage shall have been caused by the fault or negligence of
the other party.
Section 3. Contribution. Tenant shall reimburse Landlord for all insurance
premiums connected with or applicable to the Leased Premises for whatever
insurance policy the Landlord , at its sole and exclusive option, should
select.
ARTICLE XIV - DAMAGE TO DEMISED PREMISES
Section 1. Abatement or Adjustment of Rent. If the whole or any part of
the Leased Premises shall be damaged or destroyed by fire or other casualty
after the execution of this Lease and before the termination hereof, then
in every case the rent reserved in Article IV herein and other charges, if
any, shall be abated or adjusted, as the case may be, in proportion to that
portion of the Leased Premises of which Tenant shall be deprived on account
of such damage or destruction and the work of repair, restoration,
rebuilding, or replacement or any combination thereof, of the improvements
so damaged or destroyed, shall in no way be construed by any person to
effect any reduction of sums or proceeds payable under any rent insurance
policy.
Section 2. Repairs and Restoration. Landlord agrees that in the event of
the damage or destruction of the Leased Premises, Landlord forthwith shall
proceed to repair, restore, replace or rebuild the Leased Premises
(excluding Tenant's leasehold improvements), to substantially the condition
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in which the same were immediately prior to such damage or destruction. The
Landlord thereafter shall diligently prosecute said work to completion
without delay or interruption except for events beyond the reasonable
control of Landlord . Notwithstanding the foregoing, if Landlord does not
either obtain a building permit within ninety (90) days of the date of such
damage or destruction, or complete such repairs, rebuilding or restoration
and comply with conditions (a), (b) and (c) in Section 1 of Article XIII
within nine (9) months of such damage or destruction, then Tenant may at
any time thereafter cancel and terminate this Lease by sending ninety (90)
days written notice thereof to Landlord , or, in the alternative, Tenant
may, during said ninety (90) day period, apply for the same and Landlord
shall cooperate with Tenant in Tenant's application. Notwithstanding the
foregoing, if such damage or destruction shall occur during the last year
of the term of this Lease, or during any renewal term, and shall amount to
twenty-five (25%) percent or more of the replacement cost, (exclusive of
the land and foundations), this Lease, except as hereinafter provided in
Section 3 of Article XV, may be terminated at the election of either
Landlord or Tenant, provided that notice of such election shall be sent by
the party so electing to the other within thirty (30) days after the
occurrence of such damage or destruction. Upon termination, as aforesaid,
by either party hereto, this Lease and the term thereof shall cease and
come to an end, any unearned rent or other charges paid in advance by
Tenant shall be refunded to Tenant, and the parties shall be released
hereunder, each to the other, from all liability and obligations hereunder
thereafter arising.
ARTICLE XV - CONDEMNATION
Section 1. Total Taking. If, after the execution of this Lease and prior
to the expiration of the term hereof, the whole of the Leased Premises
shall be taken under power of eminent domain by any public or private
authority, or conveyed by Landlord to said authority in lieu of such
taking, then this Lease and the term hereof shall cease and terminate as of
the date when possession of the Leased Premises shall be taken by the
taking authority and any unearned rent or other charges, if any, paid in
advance, shall be refunded to Tenant.
Section 2. Partial Taking. If, after the execution of this Lease and
prior to the expiration of the term hereof, any public or private authority
shall, under the power of eminent domain, take, or Landlord shall convey to
said authority in lieu of such taking, property which results in a
reduction by fifteen (15%) percent or more of the area in the Leased
Premises, or of a portion of the Leased Premises that substantially
interrupts or substantially obstructs the conducting of business on the
Leased Premises; then Tenant may, at its election, terminate this Lease by
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giving Landlord notice of the exercise of Tenant's election within thirty
(30) days after Tenant shall receive notice of such taking. In the event of
termination by Tenant under the provisions of Section 1 of this Article XV,
this Lease and the term hereof shall cease and terminate as of the date
when possession shall be taken by the appropriate authority of that portion
of the Entire Property that results in one of the above takings, and any
unearned rent or other charges, if any, paid in advance by Tenant shall be
refunded to Tenant.
Section 3. Restoration. In the event of a taking in respect of which
Tenant shall not have the right to elect to terminate this Lease or, having
such right, shall not elect to terminate this Lease, this Lease and the
term thereof shall continue in full force and effect and Landlord , at
Landlord's sole cost and expense, forthwith shall restore the remaining
portions of the Leased Premises, including any and all improvements made
theretofore to an architectural whole in substantially the same condition
that the same were in prior to such taking. A just proportion of the rent
reserved herein and any other charges payable by Tenant hereunder,
according to the nature and extent of the injury to the Leased Premises and
to Tenant's business, shall be suspended or abated until the completion of
such restoration and thereafter the rent and any other charges shall be
reduced in proportion to the square footage of the Leased Premises
remaining after such taking.
Section 4. The Award. All compensation awarded for any taking, whether
for the whole or a portion of the Leased Premises, shall be the sole
property of the Landlord whether such compensation shall be awarded for
diminution in the value of, or loss of, the leasehold or for diminution in
the value of, or loss of, the fee in the Leased Premises, or otherwise.
The Tenant hereby assigns to Landlord all of Tenant's right and title to
and interest in any and all such compensation. However, the Landlord shall
not be entitled to and Tenant shall have the sole right to make its
independent claim for and retain any portion of any award made by the
appropriating authority directly to Tenant for loss of business, or damage
to or depreciation of, and cost of removal of fixtures, personalty and
improvements installed in the Leased Premises by, or at the expense of
Tenant, and to any other award made by the appropriating authority directly
to Tenant.
Section 5. Release. In the event of any termination of this Lease as the
result of the provisions of this Article XV, the parties, effective as of
such termination, shall be released, each to the other, from all liability
and obligations thereafter arising under this lease.
ARTICLE XVI - DEFAULT
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