SAMPLE PARTIAL COMMERCIAL LEASE FORM (FOR EDUCATIONAL PURPOSE ONLY …NOT TO BE USED IN LITIGATION)
RIDER ANNEXED TO AND MADE PART OF LEASE,
DATED ____________, 20____,
BETWEEN ___________, LLC, AS OWNER,
AND ___________, AS TENANT
THE PROVISIONS OF THIS RIDER ARE INTENDED TO AMPLIFY AND EXPAND UPON THE PROVISIONS OF THE PRINTED FORM OF THIS LEASE, BUT IN THE EVENT ANY PROVISION OF THIS RIDER CONFLICTS WITH ANY PROVISION OF THE PRINTED FORM, THE PROVISIONS OF THIS RIDER SHALL SUPERSEDE AND GOVERN. THE PRINTED FORM AND THIS RIDER SHALL COLLECTIVELY BE REFERRED TO HEREIN AS THIS “LEASE”.
ALL CAPITALIZED TERMS SHALL HAVE THE MEANING SET FORTH IN ARTICLE _____OF THIS RIDER UNLESS OTHERWISE DEFINED HEREIN OR IN THE PRINTED FORM.
Demised Premises, Term, Commencement Date, Rent, Security
1.1 (a) Owner leases to Tenant that certain premises know as ___________ (the “Demised Premises”) located within the building known as ______________________ in ________County (the “Building”).
(b) The term of this Lease (the “Term”), shall commence on ________, 2012 (the “Commencement Date”) and shall end _____________ (as hereinafter defined) after the Commencement Date (the “Expiration Date”), unless extended or sooner terminated in accordance with provisions of this Lease. The term “Lease Year” shall mean the period commencing on the Commencement Date and ending on the last day of the ___________ full calendar month thereafter and each succeeding ______________ full calendar month period during the Term.
(c) In consideration of the leasing of the Demised Premises, Tenant covenants to pay Owner, without previous demand therefor and without any right of setoff or deduction whatsoever, at the office of Owner at ___________________________________________, or at such other place as Owner may from time to time designate in writing, a rental for the Term payable monthly, in advance, in equal installments commencing with the Commencement Date and continuing on the first day of each month thereafter for the succeeding months during the balance of the Term, as set forth below:
Monthly Base Rent
Annual Base Rent
Commencement Date Until 1st Anniversary of the Commencement Date (“1st Year”)
2nd Lease Year
3rd Lease Year
(d) The rent provided for in this Section is sometimes referred to as the “Base Rent”. The Base Rent for the second full calendar month of the Term shall be paid simultaneously with the execution of this Lease by Tenant. If the Term does not commence on the first day of a calendar month, the installment of Base Rent for the partial calendar month at the commencement of the Term shall be prorated on the basis of the number of days within such calendar month. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be required to pay Base Rent for the first full calendar month of the Term. All amounts due and payable as Base Rent and Additional Rent shall be payable to Owner without demand (except as may be otherwise set forth in this Lease), and without offset, deduction or set-off whatsoever.
(e) As a material inducement for Owner to enter into this Lease, Tenant covenants and agrees that Owner shall have absolutely no obligation or liability whatsoever for the rendition of any services or repairs of any kind, nature or character whatsoever, other than as specifically set forth in this Lease, in connection with the Demised Premises, including without limitation, the equipment, sidewalks, walls, floor slab, curbs, parking areas, landscaped areas, and the approaches, driveways and entrances thereto, Building Equipment, Tenant’s Property and all other fixtures, equipment and appurtenances therein and utility systems and facilities, nor in the operation, maintenance, improvement, replacement or repair thereof, nor for the cost and expense thereof. Each and every item of cost or expense for the maintenance, repair, improvement, replacement or operation in the Demised Premises, including without limitation, all improvements, sidewalks, curbs, parking areas, landscaped areas, approaches, driveways and entrances thereto, Building Equipment, Tenant’s Property and all other equipment, fixtures and appurtenances therein, and all utility systems and facilities, whether such repairs, replacements, maintenance or improvements are nonstructural, ordinary, extraordinary, foreseen or unforeseen, shall be borne by the Tenant, at Tenant’s sole cost and expense, and ________percent (“Tenant’s Percentage”) of all costs and expenses for each of the foregoing items with respect to the Building and the Real Property shall be borne by Tenant. Furthermore, Tenant expressly acknowledges that, except as may be otherwise expressly provided for in this Lease, no event, occurrence or situation
during the Term shall relieve Tenant of the obligation to pay Base Rent and Additional Rent hereunder or entitle Tenant to an abatement of same, and the obligations of Tenant hereunder are separate and independent covenants and agreements and shall continue unaffected by any such event, occurrence or situation. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be responsible to make any structural repairs or repairs to the roof unless such repairs are required due to the misconduct or negligence of Tenant or Tenant’s agents, employees or invitees.
1.2 In the event that any Base Rent or Additional Rent payments are not paid within ______ days of the due date for such payment, then Tenant shall, in addition to such Rent payment, and interest at the Default Rate, pay to Owner a late payment fee in the amount of __________%) percent of the delinquent Base Rent or Additional Rent payments. Tenant agrees that such late payment fee is a fair and reasonable sum calculated to defer administrative expenses incurred by Owner as a result of such late payment. Such late payment fee shall be deemed Additional Rent. Nothing contained in this Section shall prohibit the Owner from exercising any of Owner’s rights or remedies based upon Tenant’s failure to pay Base Rent or Additional Rent on a timely basis. Such late payment fee shall be due and payable _____________days following the due date of the delinquent Rent payment.
1.3 If any of the Rent payable under the provisions of this Lease shall be or become uncollectible, reduced or required to be refunded because of any Legal Requirement, Tenant shall enter into such agreements and take such other steps as Owner may reasonably request and as may be legally permissible to permit Owner to collect the maximum rents which from time to time during the continuance of such legal rent restriction may be legally permissible (and not in excess of the amounts reserved therefor under this Lease). Upon the termination of such legal rent restriction, (a) the Rents shall become and thereafter be payable in accordance with the amounts reserved herein for the periods following such termination, and (b) Tenant shall pay to Owner, to the maximum extent legally permissible, an amount equal to (i) the Rents which would have been paid pursuant to this Lease but for such legal rent restrictions, less (ii) the Rents and payments in lieu of rents paid by Tenant during the period such legal restriction was in effect.
1.4 (a) Tenant shall deposit with Owner a security deposit of ____________ (the “Security Deposit”), contemporaneously with the execution hereof, which Security Deposit shall at all times be equal to ______________ months of the then current Base Rent.
(b) The Security Deposit shall be held by Owner in an account maintained by Owner at a financial institution whose depositors’ accounts are insured by FDIC. Owner shall be entitled to annually withdraw __________ percent of the Security Deposit as Owner’s administrative charge for maintaining such account. The Security Deposit shall secure performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that such deposit shall not be considered an advance payment of Base Rent or Additional Rent or a measure of Owner’s damages in case of default by Tenant.
Upon the occurrence of any Event of Default (as hereinafter defined) by Tenant, Owner 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 Base Rent, Additional Rent and any other charge or damage, injury, expense or liability to Owner by reason of such Event of Default. Following any such application of the Security Deposit, Tenant shall pay to Owner on demand the amount so applied in order to restore the Security Deposit to its required amount.
(c) Provided there exists no Event of Default hereunder, or other liability or obligation of Tenant to Owner under this Lease, any remaining balance of the Security Deposit shall be returned by Owner to Tenant promptly after the expiration or earlier termination of the Term.
(d) If Owner transfers or assigns its interest in the Demised Premises during the Term, Owner will assign the Security Deposit to the transferee and thereafter shall have no further liability or obligation with respect to the Security Deposit.
2.1 (a) Without limiting Tenant’s obligations under this Lease, Tenant shall secure and keep in full force and effect for the benefit of Owner, throughout the Term, at Tenant’s sole cost and expense, the following insurance (“Tenant’s Insurance”):
(i) insurance upon Tenant’s Property and all alterations in an amount equal to the full replacement value thereof, including any increase in value resulting from increased costs, with coverage against such perils and casualties as are commonly included in “all risk” insurance policies (including, earthquake and collapse, and sprinkler leakage, flood and other water damage); and
(ii) during the course of Tenant’s construction of any structural alterations in the Demised Premises and until completion thereof, Builder’s Risk insurance on an “all risk” basis (including collapse) on a completed value (non-reporting) form for full replacement value covering the interest of Owner and Tenant (and their respective contractors and subcontractors), and any Superior Mortgagee and Superior Lessor in all work incorporated in the Building and all materials and equipment in or about the Demised Premises; and
(iii) Workers’ Compensation with respect to all persons employed by Tenant at the Demised Premises with limits of liability in accordance with applicable law in the case of Worker’s Compensation (Owner shall not be added as an additional insured under this policy); and
(iv) Commercial General Liability Insurance written on an
occurrence basis, to afford protection in such amount as Owner may reasonably determine but in no event less than ____________ Million ($_____,000,000.00) Dollars combined single limit for bodily injury and/or death arising therefrom and Broad Form property damage arising out of any one occurrence, including: (A) a “personal injury” endorsement covering claims arising out of false arrest, false imprisonment, defamation, libel and slander, wrongful eviction, discrimination and invasion of privacy, without exclusion of coverage for claims of personal injury brought by agents or contractors of an insured, and (B) coverage for contractual liability, owners’ protective liability, independent contractor’s liability and completed operations liability (Owner shall be added as an additional insured under this policy); and
(v) boiler and pressure vessel (including, but not limited to, pressure pipes, steam pipes and condensation return pipes) insurance, provided the Building contains a boiler or other pressure vessel or pressure pipes (Owner shall be added as an additional insured and loss payee under this policy); and
(vi) Business Interruption Insurance in an amount not less than the reasonably estimated aggregate amount of Base Rent and Additional Rent for a period of _________ months (Owner shall be added as an additional insured under this policy to the extent of Owner’s right to receive Rent and any other payment from Tenant); and
(vii) such other insurance in such amounts and upon such terms and conditions, as Owner, a Superior Mortgagee and/or Superior Lessor may require from time to time.
(b) All Tenant’s Insurance shall be written and issued by responsible insurers having a general policyholder’s rating of not less than A and financial rating of VIII, as rated in the most currently available Best’s Insurance Reports and licensed to do business in New York State and authorized to issue such policies. All Tenant’s Insurance shall contain endorsements providing that (i) such policies may not be reduced or canceled (including for non-payment of premium) or allowed to lapse with respect to Owner, or changed or amended, except after thirty (30) days’ prior notice from the insurance company by registered mail to Owner in accordance with the provisions of this Lease, and (ii) Tenant shall be solely responsible for the payment of premiums therefor notwithstanding that Owner is or may be named as an insured. On or prior to the Commencement Date, duly executed certificates of insurance (specifying each of the coverage’s enumerated above and including evidence of the waivers of subrogation required pursuant to Section 2.1(c)) or, if required by Owner, original policies, together with reasonably satisfactory evidence of payment of the premiums therefor, shall be delivered to Owner. Any endorsements to any such policies shall also be so delivered upon issuance thereof and each renewal or replacement of a policy shall be so delivered at least twenty _________ days prior to the expiration of such policy. Tenant shall not carry any separate or additional insurance concurrent in form or contributing in the event of any loss or damage with any insurance required to be maintained by Tenant under this Lease. Further, all Tenant’s Insurance shall be written as primary policies not contributing with nor in excess of coverage that Owner may carry.
(c) Tenant’s Liability Insurance shall be endorsed to include the names of Owner, Tenant and such other persons, firms or entities as Owner may designate, including one or more Superior Mortgagees and/or Superior Lessors and, unless Owner otherwise requests, as their respective interests may appear, and shall contain an endorsement that each of said parties, although named as an insured, nevertheless shall be entitled to recover under said policies for any loss or damages occasioned to it, its agents, employees, contractors, directors, shareholders, partners, trustees and principals (disclosed or undisclosed) by reason of the negligence or tortuous acts of Tenant, its servants, agents, employees and contractors. All policies of insurance required to be maintained by the Tenant pursuant to this Lease shall be endorsed to reflect that in any claim where the “Other Insurance” clause in either policy is invoked, the Tenant’s Insurance shall be considered Primary Insurance, and the Owner’s Insurance shall be considered Excess Insurance. Tenant shall provide acceptable certificates of insurance to Owner indicating all of the required insurance and additional insured status.
(d) Tenant covenants that (i) Tenant shall pay all premiums due on Tenant’s Insurance, and (ii) Tenant shall not violate, or permit the violation of, any term or condition of Tenant’s Insurance, and shall maintain such polices in full force and effect throughout the Term. Owner’s procurement of insurance on behalf of Tenant pursuant to Article 8 of the printed form of this Lease and this Article shall neither relieve Tenant of liability for such default nor otherwise affect such liability, nor constitute a waiver of Owner’s rights with respect to such default.
Use of Premises
3.1 The Demised Premises including all improvements hereafter installed shall be used for the operation by Tenant of ________________________ and for no other purpose (the “Permitted Use”).
ATTORNEY ADVERTISING: Information herein and is not intended to be, legal advice. This sample legal document is provided as part of a free public educational service by Zachary Irtaza Riyaz, Esq., attorney at law in the State of New York (Westhampton – Tel. 516-234-0348), for reference only. IT IS NOT INTENDED TO GIVE LEGAL ADVICE ABOUT A SPECIFIC LEGAL PROBLEM, NOR DOES IT CREATE AN ATTORNEY-CLIENT RELATIONSHIP. Due to the importance of the individual facts of every case, the generalizations I make may not necessarily be applicable to any particular case. Statutes and codes such as Domestic Relations Law (DRL)are frequently amended and may affect the validity of the above legal document and no representation is made that the above sample is going to be enforceable in the future.Changes in the law could at any time make parts of this web site content obsolete. Updated statutes and codes may be available at the New York State Legislature Website. No statute or sample legal document should be relied on without understanding controlling case law which may further interpret it. THIS INFORMATION IS PROVIDED WITH THE UNDERSTANDING THAT IF LEGAL ADVICE IS REQUIRED THE SERVICES OF A COMPETENT ATTORNEY WILL BE CONSULTED.