Ohio Commercial Lease Agreement Form

Ohio Commercial Lease Agreement.doc Ohio Commercial Lease Agreement.pdf Use this form for renting any type of commercial space in Ohio including but not limited to: Office Space Retail Space Industria

Download

Recommended

Preview

COMMERCIAL LEASE AGREEMENT

This Lease Agreement is entered into as of _______________, 20___, by and between

________________________________________, (“Landlord”) and

_______________________________________________, (“Tenant”).

Upon the terms and subject to the conditions hereinafter set forth, Landlord leases to

Tenant and Tenant leases from Landlord, the real property described in attached Exhibit

“A”, which Exhibit A is incorporated herein by this reference, together with all

improvements now or hereafter located thereon and all appurtenances and privileges

related thereto, all of which area is hereinafter referred to as the “Premises.”

Section 1. Lease Term. The lease term shall commence on _____________, and shall

terminate on _____________.

Section 2. Rent. The annual rent for the lease term shall be $__________________,

payable in equal monthly installments of $_______________, each, in advance of the

first day of each calendar month throughout the lease term. Tenant shall pay the first and

last month’s rent to Landlord at the time of the parties’ execution of this Lease. If the

lease term commences on a day other than the first day of a calendar month, the first

month’s rent shall be adjusted accordingly.

Section 3. Use of the Premises. Tenant’s use of the Premises shall be in a lawful, careful,

safe, and proper manner, and Tenant shall carefully preserve, protect, control and guard

the same from damage. Tenant shall not use the parking area or the ingress and egress

area of the Premises in an unreasonable manner so as to interfere with the normal flow of

traffic or the use of such areas by occupants of properties adjacent to the Premises.

Section 4. Taxes and Assessments. Tenant shall pay all real estate taxes and assessments

becoming due and payable with respect to the Premises during the lease term and any

extension thereof, and all taxes or other charges imposed during the lease term or any

extension thereof with respect to any business conducted on the Premises by Tenant or

any personal property used by Tenant in connection therewith. Taxes, assessments or

other charges which Tenant is obligated to pay or cause to be paid hereunder and which

relate to any fraction of a tax year at the commencement or termination of this Lease shall

be prorated based upon the ratio that the number of days in such fractional tax year bears

to 365.

Tenant shall have the right to contest, object, or oppose the legality or validity of any tax,

assessment, or charge, provided that prompt notice of such contest, objection, or

opposition be given to Landlord, and provided further that Tenant promptly thereafter set

aside in a separate escrow account funds equal to the amount of the taxes, assessments, or

charges being contested, objected, or opposed by Tenant. Tenant agrees to hold Landlord

harmless from and to fully pay and discharge the amounts finally determined to be due

following the exercise of such right to contest, object or oppose, together with any

penalties, fines, interests, costs, or expenses that may accrue, or have accrued, thereon

and Tenant shall apply the funds so set aside under this Section 4 of fully discharge its

obligations hereunder.

If at any time during the lease term or any extension thereof, the method of taxation

prevailing at the commencement of the lease term shall be altered so as to cause the

whole or any part of the taxes, assessments, or charges now or hereafter levied, assessed

or imposed on real estate and improvement thereon to be levied, assessed or imposed

wholly or partially as a capital levy, or otherwise, on the rents received there from,

Tenant shall pay and discharge the same with respect to the rents due hereunder.

Section 5. Utilities. Tenant shall promptly pay or cause to be paid all charges incurred

for all utility services furnished to the Premises, including without limitation, telephone

service, sanitary sewer, water, natural gas, and electricity. Tenant shall also provide all

replacement light bulbs and tubes and pay for all maintenance of all utilities during the

lease term and any extension thereof.

Landlord does not warrant that any of the utility services above-mentioned will be free

from interruptions caused by war, insurrection, civil commotion, riots, acts of God or the

enemy, governmental action, lockouts, picketing (whether legal or illegal), accidents,

inability of Landlord to obtain fuel or supplies, or any other cause or causes beyond the

reasonable control of Landlord. Any such interruption of service shall not be deemed an

eviction or disturbance of Tenant’s use and possession of the Premises, or any part

thereof, or render Landlord liable to Tenant for damages, or relieve Tenant from the

performance of Tenant’s obligations under this Lease. Landlord shall have no

responsibility or liability for the failure of any public or private utility to supply sufficient

or adequate utility services to the Premises.

Section 6. Compliance with Laws. If any law, ordinance, order, rule or regulation is

passed or enacted by any governmental agency or department having jurisdiction over the

Premises or Tenant’s use of the same which requires Tenant to modify or alter its

operations or use of the Premises, this Lease shall in no way be affected and Tenant shall,

at its sole cost and expense, promptly comply with such law, ordinance, order, rule, or

regulation.

Section 7. Maintenance and Repair. Subject to the provisions of Section 11, below,

relating to destruction of or damage to the Premises, and Section 12, below, relating to

condemnation of the Premises, Tenant shall, at its sole cost and expense, keep and

maintain the Premises, including without limitation, the roof, exterior, foundation,

structural and operational parts (cooling, heating, air conditioning, plumbing equipment

and fixtures), paving and landscaping, snow and ice removal, interior maintenance

(floors, doors, toilets, light replacement, etc.), and all other elements or systems of the

Premises, in a condition and repair similar to its original condition and repair, reasonable

wear and tear excepted. Replacement and repair parts, materials, and equipment used by

Tenant to fulfill its obligations hereunder shall be of a quality equivalent to those initially

installed within the Premises. All repair and maintenance work shall be done in

accordance with the then existing federal, state, and local laws, regulations and

ordinances pertaining thereto. Except as otherwise provided in Sections 11 and 12,

below, Landlord shall have no obligation whatsoever with respect to the maintenance and

repair of the Premises.

Section 8. Indemnity and Insurance. Tenant shall indemnify Landlord for, defend

Landlord against, and save Landlord harmless from any liability, loss, cost, injury,

damage, or other expense that may occur or be claimed by or with respect to any person

or property on or about the Premises resulting form the use, misuse, occupancy,

possession, or unoccupancy of the Premises by Tenant, its agents, employees, licensees,

invitees or guests. Except where any loss, cost, injury or damage is the result of

Landlord’s sole fault or negligence, Landlord shall not have any liability for any loss,

cost, injury or damage to the Premises, to Tenant or Tenant’s employees, agents,

licensees, invitees or guests or to any property of such persons. Except as set forth in the

Section 8, Landlord shall not be responsible or liable for loss or damage to the contents of

any improvements on the Premises, regardless of who owns the contents and regardless

of how or by whom the loss or damage is caused.

At its sole cost and expense, Tenant shall obtain and thereafter maintain in full force and

effect, at all times during the lease term and any extension thereof, the following

insurance with respect to the Premises:

(a) comprehensive public liability insurance having limits of not less than

$500,000 for bodily injury or death to one person, $500,00 for bodily injuries or

death arising out of one occurrence, and $200,000 for property damage;

(b) fire and extended coverage insurance in an amount equal to at least 85 percent

of the current replacement value of the Premises, which replacement value shall

be redetermined by Landlord at the beginning of each year of the lease term and

any extension thereof. Landlord shall, upon each such redetermination, give

written notice to Tenant of such redetermined replacement value. If Tenant fails

to object to such redetermined replacement value within 21 days after its receipt

of written notice thereof, such value shall be deemed acceptable to Tenant. If

Tenant does object to such redetermined replacement value, the replacement

value of the Premises shall then be determined by an appraisal by a firm or person

selected by Landlord and approved by Tenant. Such firm or person’s

determination of the replacement value of the Premises shall be conclusive and

binding upon Landlord and Tenant. The cost of any such appraisal shall be borne

equally by Landlord and Tenant. If the replacement value of the Premises

determined by such an appraisal is higher than the then existing limits of fire and

extended insurance coverage, Tenant shall, at its sole cost and expense, promptly

cause such insurance limits to be increased to the new replacement value of the

Premises. The fire and extended coverage insurance policy shall specifically

provide that Landlord and any mortgagee or lessor of Landlord are additional

insureds and that all payments shall be made as their interests appear.

Each insurance policy furnished under this Section 8 shall be issued by a responsible

insurance company acceptable to Landlord which company shall be authorized to do

business in Ohio, and such insurance coverage may be written under a blanket policy or

policies obtained by Tenant, which policy or policies may include other real estate owned

or leased by Tenant. Landlord, Tenant and any mortgagee or lessor of Landlord shall all

be named as insured parties in each such insurance policy, and each policy shall provide

for written notice to Landlord and to any mortgagee or lessor of Landlord at least ten

days prior to any cancellation, modification, or lapse thereof. Tenant shall furnish

Landlord with memorandum copies of such insurance policies prior to the

commencement of the lease term.

Section 9. Alterations and Improvements. Tenant shall have the right to make, at no

expense to Landlord, improvements, alterations, or additions (hereinafter collectively

referred to as “Alteration”) to the Premises, whether structural or nonstructural, interior or

exterior, provided that:

(a) no Alteration shall be made without the prior written consent of Landlord,

which consent shall not be unreasonably withheld;

(b) no Alteration shall reduce or otherwise impair the value of the Premises;

(c) no Alteration shall be commenced until Tenant has fist obtained and paid for

all required permits and authorizations of all governmental authorities having

jurisdiction with respect to such Alteration;

(d) any Alteration shall be made in a good workmanlike manner and in

compliance with all laws, ordinances, regulations, codes, and permits;

(e) Tenant shall hold Landlord harmless from and against any liens and claims for

work, labor, or materials supplied to the Premises at the direction of Tenant, and

in the event that any such liens or claims shall be filed for work, labor or materials

supplied to the Premises at the direction of Tenant, Tenant shall, at Landlord’s

option, either escrow an amount equal to the amount of the lien or claim being

filed, or obtain a bond for the protection of Landlord in an amount not less than

the amount of the lien or claim being filed; and

(f) any Alteration shall become and remain the property of Landlord unless

Landlord otherwise agrees in writing.

Section 10. Signs. Tenant shall have the right to install and operate, at its sole cost and

expense, any sign or signs on the Premises which shall not be in violation of any law,

statute or ordinance, and Tenant shall have the right to remove the same, provided that

Tenant must repair any damage to the Premises caused by such removal.

Section 11. Damage to Premises. If by fire or other casualty the Premises are destroyed

or damaged to the extent that Tenant is deprived of occupancy or use of the Premises

(meaning such destruction cannot be repaired or restored within 120 days of the

occurrence of the fire or other casualty Landlord may elect to:

(a) cause the restoration of the Premises to substantially the same condition as

existed before such damage or destruction; or

(b) cancel this Lease as of the date of such fire or casualty by giving written

notice to Tenant not more than 30 days thereafter. Should Landlord elect to

proceed under (a), above, rent shall abate unless Tenant continues to partially

occupy the Premises in which case Tenant shall pay all rent on a prorated basis,

until the Premises are restored, equal to an amount obtained by multiplying the

then existing monthly rent by a percentage equal to the fraction which has as its

numerator the amount of square feet in the improvements of the Premises which

is incapable of being used for its intended purpose and as its denominator the total

amount of square feet in the improvements on the premises. If such damage does

not deprive Tenant of occupancy or use of the Premises, Landlord shall proceed

with due diligence to cause the restoration of the Premises to substantially the

same condition as existed before such damage. In such latter event, rent shall not

abate. Tenant shall fully cooperate with Landlord in making available to Landlord

for the purpose of so restoring the Premises all insurance proceeds payable under

Section 8 as a result of fire or other casualty damage to the Premises.

Section 12. Condemnation. If all or materially all of the Premises are

taken in appropriation proceedings or by right of eminent domain or by the

threat of the same, then this Lease shall terminate as of the date Tenant is

deprived of occupancy thereof, and Tenant’s obligations under this Lease,

except obligations for rent and other charges herein to be paid by Tenant

up to the date thereof, shall terminate. For purposes of this Lease,

“materially all of the Premises” shall be considered as having been taken if

the portion of the Premises taken, due either to the area so taken or the

location of the portion taken, would leave the remaining portion not so

taken insufficient to enable tenant to effectively and economically conduct

it business at the Premises.

If Less than materially all the Premises are taken in appropriation

proceedings or by right of eminent domain or by the threat thereof, then

this Lease shall not terminate as a result of such taking, but Landlord shall

promptly repair and restore the Premises to substantially the same

condition as existed immediately before such taking. Until such repair and

restoration are completed, rent shall be abated in the proportion of the

number of square feet of improvements on the Premises of which Tenant

is deprived bears to the total square feet of such improvements

immediately prior to such taking. Thereafter, if the number of square feet

of improvements is less than the total of the same prior to such taking, rent

shall be reduced in the proportion to which the number of square feet of

improvements existing after such repair and restoration is less than the

total of the same prior to such taking.

All damages awarded for any such taking shall belong to and be the

property of Landlord, whether such damages shall be awarded as

compensation for diminution in value to the leasehold or to the fee of the

Premises, or otherwise, provided, however, that Tenant shall be entitled to

any portion of the award made to Tenant for removal and reinstallation of

Tenant’s fixtures or for the cost of Tenant’s immovable fixtures, if any.

Section 13. Default. If Tenant fails to pay any installment of rent or make

any other payment required to be made by Tenant when the same shall

become due and payable hereunder, or if Tenant fails to observe and

perform any other provision, covenant, or condition of this Lease required

under this Lease to be observed and performed by Tenant within 15 days

after Landlord shall have given notice to Tenant of the failure of Tenant to

observe and perform the same, or if Tenant abandons or vacates the

Premises during the continuance of this Lease, or if Tenant makes an

assignment for the benefit of creditors or enters into a composition

agreement with its creditors, or if the interest of Tenant in the Premises is

attached, levied upon, or seized by legal process, or if this Lease is

assigned in violation of the terms hereof or is terminated by operation of

law, then, in any such event, immediately or at any time thereafter, at the

option of Landlord, Landlord shall, as it elects, either:

(a) declare this Lease to be in default, in which event this Lease shall immediately

cease and terminate, and Landlord may possess and enjoy the Premises as though

this Lease had never been made, without prejudice, however, to any and all rights

of action when Landlord may have against Tenant for rent and other charges

payable by Tenant hereunder (both past due and future rent due Landlord and past

due and future charges payable by Tenant), damages, or breach of covenant, in

respect to which Tenant shall remain and continue liable notwithstanding such

termination; or

(b) relet the Premises, or any part thereof, for such term or terms and on such

conditions, as Landlord deems appropriate for and on behalf of Tenant, for the

highest rental reasonably attainable in the judgment of Landlord, which reletting

shall not be considered as a surrender or acceptance back of the Premises or a

termination of this Lease, and recover from Tenant any deficiency between the

amount of rent and all other charges payable by Tenant under this Lease and those

amounts obtained from such reletting, plus any expenses incurred by Landlord in

connection with such reletting, including, without limitation, the expenses of any

repairs or alterations Landlord deems necessary or appropriate to make in

connection with such reletting and all sums expended for brokerage commissions

and reasonable attorneys’ fees, but Landlord shall be under no duty to relet the

Premises; or

(c) declare the whole amount of the rent and other charges which would otherwise

have been paid by Tenant over the balance of the lease term to be immediately

due and payable, without prejudice, however, to any and all other rights of action

which Landlord may have against Tenant for past due rent and other charges

payable by Tenant hereunder, damages or breach of covenant, in respect to which

Tenant shall remain and continue liable notwithstanding Landlord’s election to

proceed under this clause (c).

In the event that a bankruptcy or insolvency proceeding is filed by or against Tenant, or if

a court of competent jurisdiction or other governmental authority approves a petition

seeking a reorganization, arrangement, composition or other similar relief with respect to

Tenant, or appoints a trustee, receiver or liquidator of Tenant or of all, or substantially all,

of Tenant’s property or affairs, or assumes custody or control of all, or substantially all, of

the property or affairs of Tenant, Landlord shall have the right to elect any of the

remedies set forth above. If this Lease is assumed or assigned to a trustee, receiver,

liquidator or other court-appointed person or entity without Landlord’s prior written

consent, the parties and their respective successors (whether by operation of law or

otherwise agree that, upon such an assignment or assumption, all defaults of Tenant prior

to such assignment or assumption must be cured or that adequate assurances that such

defaults will be promptly cured must be given and that adequate assurances of future

performance under this Lease must be provided. Such adequate assurances shall mean

that a bond shall be issued in favor of Landlord in the amount equal to one year’s future

rent and that an amount equal to all existing monetary obligations of Tenant which are in

default shall be escrowed with an escrow agent acceptable to Landlord. Additionally, all

past due monetary obligations of Tenant which are in default shall be paid to Landlord

within 60 days after the assignment or assumption and rent will be currently and

continually paid on a timely basis commencing with the first day of the month following

the 60th day of the assignment and assumption.

Section 14. Non-Waiver and Right to Cure Defaults. Neither a failure by Landlord to

exercise any of its options hereunder, nor a failure to enforce its rights or seek its

remedies upon any default, nor an acceptance by Landlord of any rent accruing before or

after any default, shall affect or constitute a waiver of Landlord’s right to exercise such

option, to enforce such right, or to seek such remedy with respect to that default or to any

prior or subsequent default. The remedies provided in this Lease shall be cumulative and

shall not in any way abridge, modify or preclude any other rights or remedies to which

Landlord is entitled, either at law or in equity.

If Tenant fails to pay by their respective due dates all rents, charges or other obligations

to be paid by it pursuant to the terms hereof, or fails to make necessary repairs to the

Premises, or fails to perform any other duties which it is required to perform hereunder,

then Landlord, at its option, may do so and the amount of any expenditure attributable to

such action by Landlord, plus accrued interest at the rate of ____________ percent

(____%) per annum from the time each such expenditure is made until reimbursed, shall

immediately become due and payable to Landlord and shall be considered additional rent

hereunder; but no such payment or compliance by Landlord shall constitute a waiver of

any such failure by Tenant or affect any right or remedy of Landlord with respect thereto.

Section 15. Cooperation Respecting Mortgages. Tenant leases the Premises subject to

any mortgages now or hereafter placed upon the Premises and agrees to cooperate with

Landlord in any attempts Landlord or Landlord’s lessor may make from time to time to

obtain mortgage financing secured by the Premises. Tenant shall furnish to Landlord or to

Landlord’s lessor such written information and execute such documentation concerning

this Lease as may be requested by Landlord or Landlord’s lessor in connection with

existing mortgage financing. Tenant shall, at the request of Landlord or Landlord’s lessor,

formally subject and subordinate its interest in this Lease.

Section 16. Estoppel Certificate. Tenant shall, at Landlord’s request upon not less than

ten days’ prior notice by Landlord, execute, acknowledge, and deliver to Landlord, or

such other party as Landlord may specify, a statement in writing certifying that this Lease

has not been modified and is still in full force and effect (or if modified, that the same is

in full force and effect as modified and stating the modifications), and the dates to which

the rent and any other obligations to be paid hereunder by Tenant have been paid, and

stating whether or not, to the best of the knowledge of Tenant, Tenant or Landlord is in

default in performance of any obligation hereunder, and if so, specifying each such

default.

Section 17. Holding Over by Tenant. If Tenant shall continue in possession of the

Premises beyond the termination of the lease term, such holding over shall be considered

an extension of this Lease for a one-month period and so on, from month to month, until

terminated by either party by giving not less than 30 days written notice of termination to

the other. Such holding over shall be upon the same terms and conditions as are set forth

in this Lease.

Section 18. Surrender of Premises. Upon termination of this Lease, whether by lapse of

time or otherwise, or upon the exercise by Landlord of the power to enter and repossess

the Premises without terminating this Lease, as hereinbefore provided, Tenant shall at

once surrender possession of the Premises to Landlord in a condition and order of repair

substantially similar to its original condition and order of repair upon the commencement

of the lease term, reasonable wear and tear and damage by events of casualty described in

Section 1, excepted, and shall at once remove all of Tenant’s personal property and trade

fixtures from the Premises. Upon any such termination, Tenant shall, as directed by

Landlord, either remodel any addition to the Premises constructed by Tenant under

Section 9, above, so as to facilitate use of such addition for office operations or remove

such addition from the Premises. Any such remodeling or removal of any addition to the

Premises shall be made by Tenant at its sole cost and expense. If, upon any such

termination, Tenant does not at once surrender possession of the Premises and remove

such of its property as allowed by Landlord, Landlord may forthwith re-enter and

repossess the same and remove all of Tenant’s property without being guilty of trespass

or of forceful entry or detainer or without incurring any liability to Tenant for loss or

damage to Tenant’s property. Upon any such removal of Tenant’s property, it shall be

considered to have been abandoned and may either be retained by Landlord as its

property or may be disposed of at public or private sale as Landlord sees fit. If any such

property is either sold at public or private sale or retained by Landlord, the proceeds of

any such sale or the then current fair market value of the property, as the case may be,

shall be applied by Landlord against Landlord’s expenses of removal, storage or sale of

such property, the arrears of rent and other charges or future rent and other charges

payable hereunder, and any other damages to which Landlord may be entitled hereunder.

Tenant shall repair, at its sole cost and expense, any damage to the Premises resulting

from the removal of its property as allowed hereunder.

Section 19. Entry by Landlord. Landlord shall have the right to enter upon the Premises

at all reasonable times for the purpose of inspecting the same, and during the last year of

the lease term, or any renewal or extension thereof, Landlord may exhibit the same for

sale or rent; provided, however, that Landlord shall not unreasonably interfere with

Tenant’s use of the Premises.

Section 20. Time of the Essence. Time is of the essence in the performance and

observance of each and every term, covenant and condition of this Lease by both

Landlord and Tenant.

Section 21. Notices and Payment of Rent. Any payment of rent, notice, exercise of

option or election, communication, request or other document or demand required or

desired to be given to Landlord or Tenant shall be in writing and shall be deemed given:

(a) to Landlord when delivered personally to the managing partner of Landlord or

when deposited in the United States mail, first-class, postage prepaid, addressed

to Landlord at its address set forth at the beginning hereof; and

(b) to Tenant when delivered in person to an officer of Tenant or when deposited

in the United States mail, first-class, postage prepaid, addressed to Tenant at its

address set forth at the beginning hereof. Either party may, from time to time,

change the address at which such written notices, exercises of options or

elections, communications, requests, or other documents or demands are to be

mailed, by giving the other party written notice of such changed address.

Section 22. Assignment. Tenant shall not assign this Lease or sublet the Premises, or any

part thereof, without the prior written consent of Landlord, which consent may be subject

to terms and conditions as Landlord considers necessary in order to protect its interest in

the premises; provided, however, that no assignment of this Lease, whether by act of

tenant or by operation of law, and no sublease of the premises, or any part thereof, by or

from tenant, shall relieve or release tenant from any of its obligations hereunder.

Section 23. Governing Law. This Lease shall be subject to and governed by the laws of

the State of Ohio even though one or more of the parties may be or may become a

resident of a different state.

Section 24. Amendments. No amendment to this Lease shall be valid or binding unless

such amendment is in writing and executed by the parties hereto.

Section 25. Captions. The captions of the several sections of the Lease are not a part of

the context hereof and shall be ignored in construing this Lease. They are intended only

as aids in locating and reading the various provisions hereof.

Section 26. Sever ability of Provisions. The invalidity or unenforceability of any

particular provision of this Lease shall not affect the other provisions hereof and this

Lease shall be construed in all respects as if such invalid or unenforceable provision were

omitted.

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease Agreement

as of the date first set forth above.

Signed and acknowledged LANDLORD:

in the presence of:

______________________________ ______________________________

______________________________

TENANT:

______________________________ ______________________________

______________________________

STATE OF OHIO

COUNTY OF ______________, SS:

BE IT REMEMBERED, that before me on this ___ day of ______________, 20___,

appeared __________________________, who acknowledged the signing of the

foregoing instrument to be his voluntary act and deed.

IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed my

official seal, on the day set forth above.

______________________________

Notary Public

STATE OF OHIO

COUNTY OF _______________, SS:

BE IT REMEMBERED, that before me on this ___ day of ______________, 20 ___,

appeared __________________________, who acknowledged the signing of the

foregoing instrument to be his voluntary act and deed.

IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed my

official seal, on the day set forth above.

______________________________

Notary Public