Fillable Printable Minnesota Commercial Lease Agreement Template
Fillable Printable Minnesota Commercial Lease Agreement Template
Minnesota Commercial Lease Agreement Template
Page 1 of 15
Minnesota Commercial Lease Agreement
!
!
This LEASE AGREEMENT (hereinafter referred to as the “Lease”) is by and
between________("Landlord"), and _________ ("Tenant").
1. PREMISES AND POSSESSION. The Landlord hereby leases to the Tenant and the
Tenant hereby takes from the Landlord, for the Term and upon the conditions hereinafter
provided, the Premises consisting of __________("Premises").
2. TERM. This lease shall begin on the ___ day of _____________ , _______ , and end on
the ___ last day of _______________ , ______ ,unless sooner terminated as provided
herein, subject to the terms and conditions set forth below. This shall be known as the
Initial Term. The Tenant shall have two successive options to extend the Term of this
Lease by providing written notice to Landlord at least one hundred eighty (180) days in
advance of the last day of the Term that would expire, but for the notice of the exercise of
this option. Each option is for the right to extend the Term by five (5) years upon the
conditions stated in this Lease.
3. LEASEHOLD IMPROVEMENTS. Tenant is taking the Premises and accepting the
condition of the Premises "AS IS" and Landlord is under no obligation to make any
structural or other alterations, decoration, additions or improvements. Tenant shall not
make, and shall not commence, any improvement that has not been previously approved
by the Landlord. If any improvement is made or commenced without the Landlord's
consent, and the Landlord does not give subsequent approval thereof, the Tenant shall,
upon receiving written notice from the Landlord, restore that portion of the Premises
affected by the improvement to its preexisting condition at Tenant's expense.
4. BASE RENT. The Tenant agrees to pay to the Land lord at such other place as the Land
lord may hereafter from time to time designate in writing, without demand, annual Base
Rent in the amount of _______ Dollars ($_______ ), payable in monthly installments of
_______ Dollars ($_______ ).
a. Renewal Terms. (Not required) If Tenant exercises its options to extend the
Term of this Lease, the Base Rent for the renewal term(s) shall be as follows:
i. For the first Renewal Term of ___ years, the annual Base Rent shall be
__________________ Dollars ($_______ ), payable in equal monthly
installments.
ii. For each year of the second Renewal Term, the Base Rent shall increase
from _______ Dollars ($_______ ) by the same percentage as the increase
in the CPI (as defined below), as follows:
Page 2 of 15
1. The annual Base Rent during each year of any Renewal Term will
be a total amount equal to _______ Dollars ($_______ )plus
_______ Dollars ($_______ ) multiplied by a percentage equal to
the percentage of increase of the "CPI" (as defined below) from
________________ , ______ to the December immediately
preceding the beginning of that year of the Renewal Term, as
calculated below.
2. By way of example, if the CPI is ten percent (10%) higher in
December 2018 than it was in December 2012, the Base Rent for
the period January 1, 2019 to December 31, 2019 would be
increased by ten percent (10%) to $52,800 ($48,000+$4,800).If the
CPI for any December immediately preceding a year of the second
Renewal Term is lower than it was in December 2012, the annual
Base Rent for that year will be Forty-Eight Thousand Dollars
($48,000.00).
3. The "CPI" shall mean the Revised Consumer's Price Index for
Urban Wage Earners and Clerical Workers, U.S. City Average All
Items, Series A (1982-1984 = 100), published by the United States
Department of Labor, Bureau of Labor Statistics. If the CPI is not
published for a month, then the CPI published for a month closest,
but prior, to such month shall be utilized. If the format or
components of the CPI are materially changed or discontinued
after the execution of the Lease, Landlord shall substitute an index
which is published by the Bureau of Labor Statistics or similar
agency and comparable to the CPI. Landlord shall notify Tenant of
the substituted index used to calculate the Renewal Term Base
Rent.
b. Due Date. All monthly installments of Base Rent shall be payable in advance on
or before the first day of each calendar month during the Term. In the event any
fractional months occur during the Term, the Tenant shall pay Base Rent on a pro
rata basis calculated on the ratio of the actual number of days the Tenant is in
possession to the total days in the month in question. The Base Rent and
Operating Costs are sometimes here in collectively referred to as the rent.
c. Independent Covenant. Tenant's obligation to pay the Base Rent, Operating
Costs and other amounts due under this Lease is an independent covenant, and is
and shall not be subject to any abatement, deduction, counterclaim, reduction, set-
off or defense of any kind whatsoever. The covenants and obligations of Landlord
under this Lease are dependent upon the performance by Tenant of all of its
covenants and obligations hereunder.
5. SECURITY DEPOSIT. There shall be no security deposit paid by Tenant.
Page 3 of 15
6. OPERATING COSTS. Tenant shall assume responsibility for all gas, electric,
telephone, cable, security systems, trash removal, water, sewer, satellite, and internet
utilities for the Premises, and shall immediately notify all such utility companies that
Tenant is assuming responsibility for all usage and other charges due for the Premises.
Tenant shall also be responsible for the following "Operating Costs" for the Premises: all
regular property taxes and special assessments or other governmental impositions which
shall accrue or are payable in respect of any part of the Premises during the Term of this
Lease; all other governmental impositions, including but not limited to amounts payable
under assessment agreements relating to the Premises; fees for professional services; fees
for professional plumbing, electrical, or cleaning services for common areas. All utilities
and trash removal shall be placed in the Tenant's name and account, and shall be paid
directly by Tenant to the utility supplier. Tenant shall pay premiums for all insurance,
procured by Tenant pursuant to paragraph 20 below, directly to its insurance agent or
insurance carrier. All taxes and special assessments shall be paid by Landlord and
assessed to Tenant on a monthly basis, and shall be due from Tenant as Additional Rent
immediately upon Tenant's receipt of an invoice from Landlord, unless the invoice
indicates that the payments are due in installments (e.g., an invoice for real estate taxes
may state that 1/12 of the taxes is due each month). If monthly installments are due, they
are due on the first day of each month unless otherwise indicated by the Landlord. If
taxes or special assessments apply retroactively, they shall be assessed to Tenant
retroactively.
7. TENANT'S SIGNAGE. Any signage, displays, or graphics of any nature whatsoever
relative to the business conducted on the Premises, whether located on the Premises, in
the Premises, or elsewhere, as well as all other portions of the Premises that may be
observed from outside of the Premises, shall be provided at the expense of the Tenant,
but shall be subject, however, to the written approval of the Landlord, which approval
shall not be unreasonably withheld. All signage existing at the commencement of this
Lease is deemed approved. As to any signage which Tenant proposes to implement after
the date of execution of this Lease, the Tenant shall submit to the Landlord the plans, for
the Landlord's approval, for any such signage, displays, or graphics prior to their
implementation. If the Landlord's approval is obtained, the Tenant may not thereafter
modify the same without again obtaining the Landlord's approval. This provision shall
specifically apply to such signage, display, or graphics placed in any window of the
Premises, or elsewhere in the Premises, which may be seen from outside the Premises.
All signage in place at the time this Lease is executed is specifically approved.
8. TENANT'S ADDITIONAL WARRANTIES. In addition to any warranties or
covenants made or to be kept by the Tenant pursuant to any other provision contained
elsewhere herein, the Tenant hereby agrees:
Page 4 of 15
a. To not commit any nuisance or waste on the Premises or Premises, throw foreign
substances in plumbing facilities, or waste the services, if any, furnished by the
Landlord;
b. To not place any items in or otherwise obstruct entries, halls, stairways,
sidewalks, or other Common Areas, and not use the same for anything other than
their intended purpose;
c. To pay when due all installments of rent, and to comply with any and all of the
Tenant's other covenants and agreements contained in this Lease;
d. To store all trash and garbage and make the same available for regular pick-up;
e. To conduct its business at all times in good faith, and in a high grade and
reputable manner.
9. LANDLORD'S RIGHT TO FIX OR REPAIR. If the Tenant shall fail to keep and
preserve the Premises in the state of condition required by any provision of this Lease,
the Landlord may, at its option, provide Tenant with written notice of such failure as
provided here in. If the condition specified in any such notice shall continue for a period
of ten (10) days after the date of the notice, Land lord may, at its option, put or cause the
same to be put in the required condition and state of repair without liability to Tenant for
any loss or damage that may accrue to Tenant's property or business by reason thereof. In
such case, the Tenant, on demand, shall pay as additional rent, the cost thereof together
with interest thereon from the date paid.
10. USE. Subject to the Tenant's ability and obligation to obtain all necessary governmental
approvals and permits, the Tenant may use and occupy the Premises for the use of a
restaurant. Landlord disclaims any warranty that the Premises are suitable for Tenant's
use and Tenant acknowledges that it has had a full opportunity to make its own
determination in this regard.
a. Compliance With Laws. The Tenant further warrants that it will not commit or
permit any act to be performed, or any omission to occur on the Premises or
Premises that will be in violation of any present or future law, ordinance,
regulation or order of any governmental unit having jurisdiction over the Premises
or Premises. This section shall specifically apply to the conformance with all
health, safety, and building codes as the same may relate to any equipment or
fixtures on the Premises or to any other aspect of the operation of the Tenant's
business.
11. MAINTENANCE AND REPAIR. The Landlord shall maintain the foundations,
exterior walls (except plate glass or other breakable material used in structural portions
which shall be the responsibility of the Tenant as to that portion of such plate glass or
other structural materials that may be located within or form part of the boundary of the
Premises) and roof of the Premises in good repair, ordinary wear and tear excepted,
unless the need for any such repair or replacement is directly or indirectly attributable to
or results from activity being conducted within the Premises, or is necessary to
Page 5 of 15
accommodate Tenant's operations, or becomes necessary by reason of the negligence of
the Tenant, its agents, servants, employees, or anyone else for whose acts the Tenant is
responsible. The costs of routine maintenance and repair of the Premises shall be paid
directly by the Tenant.
a. Tenant's Maintenance Obligations. The Tenant, at its own expense, shall
maintain the Premises at all times in as good condition and repair of equal quality
with the original work and condition, ordinary wear and tear excepted, and in a
clean, sanitary, and safe condition in accordance with all applicable laws,
ordinances, and regulations; including, without limitation, all plumbing, sewage,
ventilating, and electrical systems serving the Premises, doors, windows, floors
and floor coverings, interior walls and all interior painting and decorating, and all
equipment, facilities, fixtures, and appurtenances. The Tenant shall permit no
waste, damage, or injury to the Premises. If the Tenant refuses or neglects to
commence necessary repairs within a reasonable period (no longer than ten (10)
consecutive days) after written request, or does not adequately complete such
repairs within a reasonable period (no longer than ten (10) consecutive days) after
written request, or does not adequately complete such repairs within a reasonable
time thereafter, the Landlord may make the repairs without liability to the Tenant
for any loss or damage that may occur to the Tenant's stock or business by reason
thereof, and if the Landlord makes such repairs, the Tenant shall pay to the
Landlord amount so paid by the Landlord and/or all costs and expenses incurred
by the Landlord in making the above maintenance or repair, including reasonable
attorneys' fees, shall be deemed to be additional rent for the Premises and shall be
due and payable by the Tenant to the Landlord on demand.
b. Glass Windows. The Tenant shall replace, forthwith, any cracked or broken glass
with glass of the same quality, including plate glass or glass and other breakable
materials used in structural portions in any interior or exterior windows and doors
in the Premises. If not covered by insurance, the Tenant shall bear the expense of
any such glass replacement directly.
12. LANDLORD'S RIGHT OF ACCESS. The Landlord, its employees, and agents shall
have the right to enter the Premises at all reasonable times for the purpose of inspecting,
cleaning, or repairing the Premises, or any portion thereof, or to exhibit the Premises to
prospective tenants, purchasers, or others the Landlord may deem appropriate.
Specifically, the Landlord, its employees, or agents shall also be permitted to install on or
through the Premises conduits or other utility lines or services as the Landlord may deem
necessary or appropriate.
13. ALTERATIONS. Tenant shall not make any alterations, additions, or improvements in
or to the Premises, or add, disturb, or in any way change any plumbing or wiring therein
without the written consent of the Landlord as to the character and detailed plans of the
alteration, addition, or improvement to be made, the manner of doing the work, the
Page 6 of 15
appropriate indemnifications for the Landlord, the persons to do the work, the providing
of the costs therefor, the returning of the Premises to the condition in which they were at
the commencement (if required by the Landlord), and other requirements or assurances
that may be required by the Landlord.
14. ASSIGNMENT OR SUBLETTING. Tenant will not assign, transfer, mortgage or
encumber this Lease or sublet or rent or permit occupancy or use of the Premises, or any
part thereof by any third party; nor shall any assignment or transfer of this Lease be
effectuated by operation of law or otherwise, (any of the foregoing being hereinafter
referred to as an "Assignment") without in each such case obtaining the prior written
consent of Landlord. The consent by Land lord to any Assignment shall not be construed
as a waiver or release of Tenant from the terms of any covenant or obligation under this
Lease, nor shall the collection or acceptance of rent from any transferee under an
Assignment constitute an acceptance of the Assignment or a waiver or release of Tenant
or any transferee of any covenant or obligation contained in this Lease, nor shall any
Assignment be construed to relieve Tenant from the requirement of obtaining the consent
in writing of Landlord to any further Assignment.
15. FIRE OR OTHER CASUALTY. If fire or other casualty shall render the Premises
untenantable for a period in excess of ninety (90) days, either party shall have the right to
terminate this Lease forthwith, in which case all rent owed to the Landlord shall be
calculated and paid to the Landlord within ten (10) days of the Landlord's request
therefor and any prepayments of rent shall be credited against the rent owed to the
Landlord. If the Premises can be restored to a tenantable condition within ninety (90)
days from the date of such event, then, at the Landlord's option, by notice in writing to
the Tenant, mailed within thirty (30) days after such event, this Lease shall remain in full
force and effect, with the exception that the Base Rent for the period during which the
Premises were untenantable shall be abated pro rata.
16. CONDEMNATION: EMINENT DOMAIN. If the whole of the Premises shall be taken
by any public authority under the power or threat of eminent domain, then the Term of
this Lease shall cease as of the day possession shall be taken by such public authority,
and the rent shall be paid up to that date with a proportionate refund by Landlord of such
rent as may have been paid in advance, if any. If a portion of the Premises shall be taken
by any public authority under the power or threat of eminent domain, the Base Rent shall
be abated pro rate based on the percentage of square footage taken.
17. SURRENDER AND TREATMENT OF IMPROVEMENTS. On the last day of the
Term or on the sooner termination thereof, the Tenant shall peaceably surrender the
Premises in the condition required of the Tenant and consistent with the Tenant's duty to
make alterations, modifications, or repairs pursuant to this Lease. All permanent
alterations, additions, improvements and fixtures, other than trade fixtures, that may be
made or installed by either of the parties hereto on the Premises shall, at the time of such
installation, become the property of the Landlord and shall remain on and be surrendered
Page 7 of 15
with the Premises as a part thereof, without damage or injury and without compensation
or credit to the Tenant unless the Landlord, at its option, requires the removal of any such
alterations, additions, improvements, or fixtures. All nonpermanent alterations, additions,
improvements, and fixtures that may be made or installed by the Tenant on the Premises
shall remain at all times the property of the Tenant and shall be removed by the Tenant
on termination of this Lease.
a. Designation by Landlord. At the time the Tenant applies for the Landlord's
written consent to any alterations, additions, improvements, and fixtures, the
Landlord shall determine, in its reasonable discretion, which are to be deemed
permanent and which are nonpermanent for purposes hereof, provided, however,
that failure of the Landlord to do so shall not be deemed a waiver of its right to do
so at a later time, or of any of its other rights with respect thereto pursuant to
statute or common law.
b. Tenant's Failure to Surrender. If the Premises are not surrendered at the end of
the Term or sooner termination thereof, the Tenant shall indemnify the Landlord
against any loss or liability from delay by the Tenant in so surrendering the
Premises, including, without limitation, claims made by any succeeding Tenant
founded on such delay. The Tenant shall promptly surrender all keys for the
Premises to the Landlord at the place then fixed for payment of rent and shall
inform the Landlord of combinations on any locks and safes on the Premises.
c. Holding over. In the event that the Tenant, with the Landlord's express
permission, remains in possession of the Premises after the expiration of its Lease
without the execution of a new Lease, it shall be deemed to be occupying the
Premises as a tenant from month-to-month, subject to all the conditions and
provisions of this Lease, insofar as the same can be applicable to a month-to-
month tenancy, except that the Base Rent shall be double the amount stated
herein.
18. DEFAULT. The following shall constitute an "Event of Default" under the terms of this
Lease:
a. If the Tenant shall fail to timely pay, when due, any rent or other sums due under
this Lease, and any such rent or other sums shall remain unpaid for five (5) days
after the same becomes due;
b. If the Tenant shall fail to observe or perform any of the covenants, terms or
conditions of this Lease;
c. The existence of any collusion, fraud, dishonesty or bad faith by or with the
acquiescence of the Tenant, which in any way relates to or affects this Lease or
the Premises;
d. If at any time any material representation, statement, report or certificate made
now or hereafter by the Tenant is not true and correct, or if at any time any
statement or representation made by the Tenant is not true and correct, and such
Page 8 of 15
representation, statement, report or certificate is not corrected within ten (10) days
after written notice thereof;
e. If all or a substantial part of the assets of the Tenant are attached, seized,
subjected to a writ or distress warrant, or are levied upon, unless such attachment,
seizure, writ, warrant or levy is vacated within thirty (30) days;
f. If the Tenant is enjoined, restrained or in any way prevented by court order from
performing any of its obligations hereunder or conducting all or a substantial part
of its business affairs; or if a proceeding seeking such relief is not dismissed
within thirty (30) days of being filed or commenced;
g. If a notice of lien, levy or assessment is filed of record with respect to all or any
part of the property of the Tenant by the United States, or any other governmental
authority, unless contestable and actually and diligently contested in accordance
herewith;
h. If the Tenant shall file a voluntary petition for bankruptcy or for arrangement,
reorganization or other relief under any chapter of the Federal Bankruptcy Code
or any similar law, state or federal, now or hereafter in effect;
i. If the Tenant shall file an answer or other pleading or any proceeding admitting
insolvency, bankruptcy, or inability to pay its debts as they mature;
j. If, within thirty (30) days after the filing against it of any involuntary proceedings
under the Federal Bankruptcy Code or similar law, state or federal, now or
hereafter in effect, the Tenant shall fail to have such proceeding vacated;
k. If the Tenant shall fail to vacate, within thirty (30) days following the entry
thereof, any order appointing a receiver, trustee or liquidator for it or all or a
major part of its property, either on or off the Premises;
l. If the Tenant shall be adjudicated as bankrupt;
m. If the Tenant shall make an assignment for the benefit of creditors or shall admit
in writing its inability to pay its debts generally as they become due or shall
consent to the appointment of a receiver or trustee or liquidator of all or the major
part of its property, or the Premises;
n. If the Tenant shall die, or shall be judicially declared to be incompetent if a
natural person, or if such Tenant is a firm, partnership, or corporation, be
dissolved, terminated or merged, except as the same shall constitute an
Assignment pursuant to Section 13 hereof to which the Landlord gives consent;
o. If the Tenant shall sell, convey, transfer or assign all or a major portion of its
inventory, fixtures or other personal property, either on or off the Premises,
without replacing same with comparable equivalents within thirty (30) days;
p. If the Tenant shall sell, convey, transfer or assign any of the Tenant's rights, title,
or interest in the Premises or this Lease, unless with the consent of Landlord in
accordance with Section 13 hereof;
q. If the Tenant abandons the Premises before the end of the Term;
Page 9 of 15
r. If the Tenant shall, at any time during the Term of this Lease, fail to carry in full
force and effect any of the insurance coverage required by Paragraph 20 of this
Lease.
I. Default -Nonpayment of Rent. If any installment of rent is not paid by Tenant
within four days of the date when due (e.g., if Base Rent is not paid by the fifth day of
a month): (i) a one-time late charge in the amount of one hundred dollars ($100.00)
shall become immediately due and payable as compensation to Landlord for
administrative costs; and (ii) the unpaid balance due Landlord shall bear interest at
the Interest Rate from the date such installment became due and payable to the date of
payment thereof by Tenant, and such late charge(s) and interest shall constitute
additional rent hereunder which shall be immediately due and payable. The "Interest
Rate" as used herein means the lesser of: the maximum rate permitted by law; and
eighteen percent (18%) per annum.
II. Waiver. No payment by Tenant or receipt by Landlord of a lesser amount than the
monthly installments of rent herein stipulated shall be deemed to be other than on
account of the earliest stipulated rent nor shall any endorsement or statement on any
check or letter accompanying a check for payment of rent be deemed an accord and
satisfaction, nor shall acceptance of rent with knowledge of breach constitute a
waiver of the breach, and Landlord may accept such check or payment without
prejudice to Landlord's right to recover the balance of such rent, to terminate this
Lease, to repossess the Premises or to pursue any other remedy provided in this
Lease. No re-entry by Landlord, and no acceptance by Landlord of keys from Tenant
shall be considered an acceptance of a surrender of the Lease.
III. Remedies. Upon the occurrence of any Event of Default, the Landlord shall have any
one or more of the following remedies:
a. The Landlord may immediately terminate this Lease by notice to the Tenant.
Upon such termination by the Landlord, the Tenant will at once surrender
possession of the Premises to the Landlord and remove all of the Tenant's
effects therefrom; and the Landlord may forthwith re-enter the Premises and
repossess itself thereof, and remove all persons and effects therefrom using
such force as may be necessary without being guilty of trespass, forcible entry
or detainer or other tort.
b. Enter upon and take possession of the Premises by picking or changing the
locks if necessary, and lock out, expel or remove the Tenant or any other
person who may be occupying the Premises or any part thereof, by force if
necessary, without being liable for prosecution or any claim for damages
therefor, with or without having terminated this Lease;
c. Landlord may enter upon the Premises by force if necessary without being
liable for prosecution or any claim for damages therefor, and remedy such
default for the account and at the expense of the Tenant without thereby
Page 10 of 15
waiving such default, and the Tenant further agrees that the Landlord shall not
be liable for any damages resulting to the Tenant from such action;
d. Whether or not this Lease has been terminated, Landlord may, but shall not be
obligated to, attempt to relet the Premises for the account of Tenant in the
name of Landlord or otherwise, for such term or terms (which may be greater
or less than the period which would otherwise have constituted the balance of
the Term) and for such terms (which may include concessions or free rent)
and for such uses as Landlord, in its uncontrolled discretion, may determine,
and may collect and receive the rent therefor.
e. No termination of this Lease pursuant to Subsection (a) or repossession of the
Premises pursuant to Subsection (b) shall relieve Tenant of its liabilities and
obligations under this Lease, all of which shall survive any such termination
or repossession. In the event of any such termination or repossession, whether
or not the Premises shall have been relet, Tenant shall pay to Landlord the
Base Rent, Operating Costs, and other sums and charges to be paid by Tenant
up to the time of such termination or repossession, and thereafter Tenant, until
the end of what would have been the Term in the absence of such termination
or repossession, shall pay to Landlord, as and for liquidated and agreed
current damages for Tenant's default, the equivalent of the amount of the Base
Rent, Operating Costs, and such other sums and charges which would be
payable under this Lease by Tenant if this Lease were still in effect, less the
net proceeds, if any, of any reletting effected pursuant to the provisions of
Subsection (d) after deducting all of Landlord's expenses in connection with
such reletting, including, without limitation, all repossession costs, brokerage
and management commissions, operating expenses, legal expenses, attorneys'
fees, alteration costs, and expenses of preparation for such reletting. Tenant
shall pay such current damages to Landlord monthly on the days on which the
Base Rent would have been payable under this Lease if this Lease were still in
effect, and Landlord shall be entitled to recover the same from Tenant on each
such day.
f. In the event the Tenant deserts, vacates or abandons the Premises, the
Landlord may remove and store any property which remains in the Premises.
In addition to the Landlord's other rights, the Landlord may dispose of the
stored property if the Tenant does not claim the property within ten (10) days
after the date the property is stored. The Landlord may charge a reasonable
storage fee, which fee Tenant must pay before claiming the property. The
Landlord shall deliver by certified mail to the Tenant, at the address specified
for notice to the Tenant herein, a notice that the Landlord may dispose of the
property if the Tenant does not claim it within ten (10) days after the date the
property is stored.
Page 11 of 15
g. The Landlord may bring an action in a court of competent jurisdiction to
collect any amounts due and owing under this Lease and/or to compel the
Tenant to perform any and all of Tenant's obligations under this Lease.
h. The Landlord may charge all costs to cure any default or offset any loss
caused by the Tenant's default to the Tenant as additional rent; and
i. The Tenant shall pay, in addition to the rent and other sums agreed to be paid
hereunder, all costs, including without limitation reasonable attorneys' fees,
incurred by the Landlord that result from enforcing the provisions of this
Lease.
19. INSURANCE. The Tenant agrees to secure and keep in force from and after the
Commencement Date of this Lease and throughout the full Term of the Lease, at the
Tenant's own cost and expense, the following:
a. "All Risk" property insurance on the Tenant's Premises, as well as the entire
Premises. Such insurance shall include coverage for the full replacement value of
all of Tenant's leasehold improvements, trade fixtures and personal property
within the premises. Landlord shall be named as loss payee under all such
policies.
b. Commercial general liability insurance on the Premises as well as the Premises,
providing coverage on an "occurrence" rather than a "claims made" basis, which
policy shall include coverage for Bodily Injury, Property Damage, Personal
Injury, Contractual Liability (applying to this Lease), and Independent
Contractors, in current Insurance Services Office form or other form which
provides coverage at least as broad. Tenant shall maintain a combined policy limit
of at least $1,000,000 applying to Bodily Injury, Property Damage and Personal
Injury, which limit may be satisfied by Tenant's basic policy, or by the basic
policy in combinations with umbrella or excess policies so long as the coverage is
at least as broad as that required herein. Such liability, umbrella and/or excess
policies may be subject to aggregate limits so long as the aggregate limits have
not at any pertinent time been reduced to less than the policy limit stated above,
and provided further that any umbrella or excess policy provides coverage from
the point that such aggregate limits in the basic policy become reduce or
exhausted. Landlord shall be name as an additional insured under all such
policies.
i. Other Requirements. All policies of insurance procured by the Tenant
shall:
ii. Be issued by insurance companies reasonably acceptable to the Landlord;
iii. Be written as primary policies not contributing with and not in excess of
coverage that the Landlord may carry;
iv. All comprehensive general liability insurance procured by the Tenant
under this section shall be issued for the benefit of the Landlord, the
