California
Commercial Lease Agreement
This Commercial Lease Agreement ("Lease") is made and effective
_______________________ [Date], by and between _______________________
[Landlord] ("Landlord") and _______________________ [Tenant] ("Tenant").
Landlord is the owner of land and improvements commonly known and numbered
as _____________________________________________________________________
[Address of Building] and legally described as follows (the "Building"):
_____________________________________________________________________
_____________________________________________________________________ [Legal
Description of Building]
Landlord makes available for lease a portion of the Building designated as
__________________________________________________ [Suite or Other Number of
Leased Building] (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 Premises to Tenant, and Tenant hereby
leases the same from Landlord, for an "Initial Term" beginning
_______________________ [Start Date] and ending _______________________ [End
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 Leased 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
_______________________ [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
_______________________ [Annual Rent] per year, payable in installments of
_______________________ [Monthly Rental Amount] 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
_____________________________________________________________________
[Landlord's Designated Payment Address] 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 _______________________ [Security Deposit].
B. The rental for any renewal lease term, if created as permitted under this
Lease, shall be _______________________ [Annual Rent in Renewal Term] per
year payable in installments of _______________________ [Monthly Rental
Amount] per month.
3. 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 obligations 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 part 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 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
Paragraph. Tenant shall obtain the agreement of Tenant's insurers to notify
Landlord that a policy is due to expire at least (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 invoice. Tenant
acknowledges that the Leased Premises are designed to provide standard
office use electrical facilities and standard office lighting. Tenant shall
not use any equipment or devices that utilizes 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 locations 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 numbers 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 s paces. Tenant hereby leases from Landlord _______________________
[Number of Parking Spaces] spaces in such structural 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
_______________________ [Parking Space Rental] per space throughout the term
of the Lease. Such rental shall be due and payable each month without demand
at the time herein set 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 Section 8 A. 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 event 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. 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.
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 thereafter diligently prosecuted, Landlord may declare the
term of this Lease ended and terminated by giving Tenant written notice of
such intention, and if possession of the Leased Premises is not surrendered,
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
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 attorning to
the holder of any such liens as Landlord may request. In the event that
Tenant should fail to execute any instrument of subordination herein require
d to be executed by Tenant promptly as requested, Tenant hereby 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 persons as Landlord shall
request a statement in recordable form certifying that this Lease is
unmodified and 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 that Landlord is not in default hereunder (or if
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
The Security Deposit shall be held by Landlord without liability for
interest 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, Landlord may commingle
the Security Deposit with Landlord' s other funds. Landlord 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.
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:
If to Landlord to:
______________________________________________
[Landlord]
______________________________________________
[Landlord's Address]
If to Tenant to:
______________________________________________
[Tenant]
______________________________________________
[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 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 be 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 hereunder
until Tenant shall have been fully reimbursed for such expenditures,
together with interest thereon at a rate equal to the lesser 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 unreimbursed 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.
30. Governing Law
This Agreement shall be governed, construed and interpreted by, through and
under the Laws of the State of California.
IN WITNESS WHEREOF, the parties have executed this Lease as of the day and
year first above written.
______________________________________________
[Landlord] Signature Block
______________________________________________
[Tenant] Signature Block
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