Commercial Lease Contract

COMMERCIAL LEASE CONTRACT

This Commercial Lease Contract ("Lease") is entered into as of by and between , a party hereinafter referred to as "Lessor," and , hereinafter referred to as "Lessee."

RECITALS

WHEREAS, Lessor is the lawful owner of certain commercial real property located at (the "Premises");

WHEREAS, Lessee desires to lease from Lessor, and Lessor desires to lease to Lessee, certain space within the Premises for the Permitted Use defined below under the terms and conditions set forth herein; and

WHEREAS, the parties intend that this Lease establish the respective rights and obligations of the parties with respect to the Premises for the Lease Term described below.

NOW, THEREFORE, in consideration of the mutual covenants contained in this Lease and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. DEFINITIONS

Certain capitalized terms used in this Lease have the following meanings: "Lease Year" means each consecutive twelve (12) month period beginning on the Commencement Date or an anniversary thereof. "Premises" means the area described above and further identified in Exhibit A attached hereto and incorporated herein. "Permitted Use" means the operation of .

2. LEASED PREMISES; TERM

2.1 Premises. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the Premises described above, together with appurtenant rights of ingress and egress as described herein.

2.2 Term. The initial lease term ("Term") shall commence on and shall expire on unless earlier terminated in accordance with this Lease.

3. RENT; ADDITIONAL CHARGES

3.1 Payment. Lessee shall pay Base Rent to Lessor in advance on the first day of each calendar month at the address set forth for notices or at such other place as Lessor designates in writing. Lessee shall also be responsible for its proportionate share of Taxes, Operating Expenses and Utilities as set forth in this Lease.

3.2 Late Payment. If any installment of Rent is not received within days after its due date, Lessee shall pay Lessor a late charge equal to and interest on the overdue amount at the lesser of 1.5% per month or the maximum rate permitted by law.

4. USE, COMPLIANCE AND OCCUPANCY

4.1 Permitted Use. Lessee shall use the Premises solely for the Permitted Use and for no other purpose without the prior written consent of Lessor, which consent shall not be unreasonably withheld where the proposed use is consistent with zoning and this Lease.

4.2 Compliance. Lessee shall comply with all applicable laws, ordinances, rules, regulations, permits and licenses pertaining to the use, condition or occupancy of the Premises. Lessee shall not commit or permit any waste, nuisance or hazardous material release on the Premises.

5. MAINTENANCE; REPAIRS; ALTERATIONS

5.1 Maintenance and Repairs. Except as expressly provided, Lessee shall, at its sole cost and expense, maintain the Premises in good order and repair, including interior finishes, fixtures and equipment. Lessor shall be responsible for structural repairs to foundations, exterior walls and roof, unless damage is caused by Lessee's negligence or willful act.

5.2 Alterations. Lessee shall not make any material alterations, improvements or additions to the Premises without Lessor's prior written consent, which consent shall not be unreasonably withheld for non-structural work. All permitted alterations shall be performed at Lessee's expense and in a good and workmanlike manner in compliance with applicable law. Unless Lessor instructs otherwise in writing, fixtures and alterations shall remain with the Premises at the expiration or earlier termination of this Lease.

6. INSURANCE; INDEMNITY

6.1 Insurance. Lessee shall maintain, at Lessee's expense, commercial general liability insurance with limits not less than per occurrence and property insurance covering Lessee's personal property and trade fixtures. Lessor shall maintain property insurance covering the building as reasonably required by lender or market practice.

6.2 Indemnity. Lessee shall indemnify, defend and hold harmless Lessor and its agents from and against any claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of (a) Lessee's use or occupancy of the Premises, (b) any breach by Lessee of this Lease, or (c) any negligent or willful act or omission of Lessee or its agents, invitees or contractors.

7. DEFAULT; REMEDIES

7.1 Events of Default. The following events shall constitute an Event of Default by Lessee: (a) failure to pay Rent or other charges within the time provided after any applicable notice and grace period; (b) failure to perform any other covenant or obligation of Lessee and failure to cure such nonmonetary default within thirty (30) days after written notice (or if such default cannot reasonably be cured within thirty (30) days, within a commercially reasonable time); or (c) abandonment of the Premises.

7.2 Remedies. Upon the occurrence of an Event of Default, Lessor shall have all rights and remedies available at law or in equity, including the right to terminate this Lease, recover possession, recover damages, and pursue specific performance. No remedy shall be exclusive and the exercise of one remedy shall not preclude the exercise of any other.

8. ASSIGNMENT AND SUBLETTING

Lessee shall not assign this Lease or sublet the Premises or any portion thereof without the prior written consent of Lessor, which consent shall not be unreasonably withheld for financially responsible assignees or subtenants whose intended use complies with the Permitted Use. Any assignment or subletting without consent shall be void and shall constitute an Event of Default. Notwithstanding consent to assignment, Lessee shall remain primarily liable under this Lease unless released in writing by Lessor.

9. CONDEMNATION; DAMAGE OR DESTRUCTION

9.1 Condemnation. If the whole or a material part of the Premises is taken by eminent domain, Lessor may terminate this Lease as of the date title vests in the condemning authority by written notice to Lessee. Any award shall belong to Lessor; provided that Lessee may recover separately for its leasehold improvements and relocation costs to the extent permitted by law.

9.2 Damage. If the Premises are damaged by casualty, Lessor shall, subject to insurance proceeds and the extent of damage, use reasonable efforts to restore the Premises. If restoration cannot be completed within days, either party may elect to terminate this Lease by written notice to the other party.

10. TAXES AND ASSESSMENTS

Lessee shall pay, when due, all taxes, assessments, utility charges and other governmental impositions attributable to Lessee's use of the Premises and to Lessee's personal property. Lessee shall timely pay any business personal property taxes assessed against Lessee's trade fixtures, equipment or inventory.

11. ACCESS; INSPECTION

Lessor and its agents shall have the right to enter the Premises upon reasonable notice during normal business hours to inspect the Premises, make necessary repairs, or show the Premises to prospective buyers or tenants; provided that Lessor shall use commercially reasonable efforts to minimize interference with Lessee's business.

12. NOTICES

All notices required or permitted under this Lease shall be in writing and shall be deemed delivered when personally delivered, sent by nationally recognized overnight courier, or three (3) days after deposit in the United States mail, postage prepaid, certified or registered, return receipt requested, addressed as follows (or to such other address as either party may designate by notice):

13. GOVERNING LAW; DISPUTE RESOLUTION

This Lease shall be governed by and construed in accordance with the laws of the state in which the Premises are located without regard to conflict of law principles. Any dispute arising out of or relating to this Lease shall be resolved by binding arbitration administered in the county where the Premises are located, unless the parties agree otherwise in writing. Judgment upon any award may be entered in any court of competent jurisdiction.

14. ENTIRE AGREEMENT; SEVERABILITY; AMENDMENTS; WAIVER; COUNTERPARTS

14.1 Entire Agreement. This Lease, together with any exhibits or schedules attached hereto, constitutes the entire agreement between the parties with respect to the Premises and supersedes all prior negotiations, understandings and agreements, whether written or oral.

14.2 Severability. If any provision of this Lease is held invalid or unenforceable, the remaining provisions shall remain in full force and effect and shall be construed so as to effectuate the intent of the parties as nearly as possible.

14.3 Amendments; Waiver. No amendment, modification or waiver of any provision of this Lease shall be effective unless in writing and signed by both parties. The failure of either party to enforce any right shall not constitute a waiver of that or any other right.

14.4 Counterparts. This Lease may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile or electronic copies of signatures shall be binding for all purposes.

15. MISCELLANEOUS PROVISIONS

15.1 Subordination and Attornment. This Lease shall be subject and subordinate to any ground lease or mortgage affecting the Premises, provided that Lessee's attornment shall be conditioned on the purchaser or mortgagee not materially altering Lessee's rights under this Lease.

The parties have executed this Lease as of the date first written above.

Sign Now