COMMERCIAL LEASE AGREEMENT
THIS COMMERCIAL LEASE AGREEMENT (the “Lease Agreement”) is hereby entered
into on this ………………day of …….……………. Two Thousand and ……………………………
BETWEEN
1. XXXX
TELEPHONE: XXX hereinafter be referred to as “LESSOR”
OF THE FIRST PART
-AND-
1. XXXX
Telephone: _________________ hereinafter referred to as “THE LESSEE”
OF THE SECOND PART
Collectively the Lessor and Lessee shall be known as the “PARTIES.”
IN CONSIDERATION OF the Lessor leasing certain premises to the Lessee, the
Lessee leasing those premises from the Lessor and the mutual benefits and
obligations set forth in this Lease Agreement, the receipt and sufficiency of
which consideration is hereby acknowledged, the Parties to this Lease
Agreement (the “Parties”) agree as follows:
1. DESCRIPTION OF LEASED PREMISES.
The Lessor agrees to lease to the Lessee the following described space as
portrayed in Appendix A:
Street Address: XXX
Square Feet: XXX
Type of Space: Building
Other Description: A pre-school which is on an elementary school
ground.
Hereinafter known as (the XXX;).
2. USE OF LEASED PREMISES
I. The Lessee agrees to use the Premises for sole purpose of a Pre-School
establishment. Any change in the above-mentioned purpose of the Premises shall
only be permitted upon the Lessor’s prior written consent.
II. The Lessee covenants that the Lessee will carry on and conduct its business upon
the Premises in such manner as to comply with all statutes, bylaws, rules and
regulations of any federal, state, municipal or other competent authority and will
not do anything on or in the Premises in contravention of any of them.
III. The Lessee covenants that the Lessee will carry on and conduct its business from
time to time carried on upon the Premises in such manner as to comply with any
statute, including any subordinate legislation, which is in force now or in the
future and taking into account any amendment or reenactment, or any
government department, local authority, other public or competent authority or
court of competent jurisdiction and of the insurers in relation to the use,
occupation and e\joyment of the Building (including in relation to health and
safety compliance with the proper practice recommended by all appropriate
authorities).
3. TERM OF LEASE
I. The term of this Agreement shall be for a period of five (5) Years three (3)
Months commencing on [START DATE], and expiring on [END TERM] (“Initial
Term”).
II. The Lessee shall have a Free Fixed Rent (the “Free Fixed Rent”) period of
three (3) Months from the date of commencement of the Lease Agreement. The
Lessee shall use and occupy the Premises during the Free Fixed Rent period
pursuant to all of the other terms, covenants and conditions of this Lease
Agreement;
III. Should the Lessee remain in possession of the Premises with the consent of the
Lessor after the natural expiration of this Lease for the Initial Term, a new
tenancy will be created between the Lessor and the Lessee which will be
subject to all the terms and conditions of this Lease Agreement but will be
terminable upon either party giving one month’s notice to the other party. The
term of this Lease Agreement will be renewable after every 5 years.
4. SECURITY DEPOSIT
The Lessee is: (check one)
☐ – Not Required to Pay a Deposit. There shall be no deposit required
for the successful performance of this Agreement by the Lessee
(“Security Deposit”).
☐ – Required to Pay a Deposit. The Lessee is required to pay
$[AMOUNT] and shall be due and payable in advance of the Term or at
the signing of this Agreement (“Security Deposit”). The Security Deposit
shall be held in escrow by the Lessor in a separate bank account as
security for the successful performance of the terms and conditions of
this Agreement. The Security Deposit may not be used to pay the last
month’s Rent unless written permission is granted by the Lessor.
5. RENT
I. The annual rent is calculated as a price per square foot ($9.24 per 5,000 Square
Feet) of the usable space with 1/12 th due each month. The Total Annual Rent
will be $46,200.
II. Subject to the provisions of this Lease, the Lessee will pay a base rent of
$3,850, payable per month, for the Premises (the "Base Rent"), without setoff,
abatement or deduction. In addition to the Base Rent, the Lessee will pay for
any fees or taxes arising from the Lessee’s business.
III. The Lessee will pay the Base Rent on or before the 5th day of each and every
month of the Term to the Lessor.
IV. In the event that this Lease Agreement commences, expires or terminates
before the end of a period for which any Additional Rent or Base Rent would be
payable, or other than at the start or end of a calendar month, such amounts
payable by the Lessee will be apportioned pro rata on the basis of a thirty (30)
day month to calculate the amount payable for such irregular period.
V. "Ark of Learning scholarships" will be contingent to eligibility and qualifications,
awarded scholarships will be added in lieu of the rent price.
6. LEASED PREMISES
I. The Lessor agrees to rent to the Lessee the Premises for only the permitted use
(the "Permitted Use") of: Pre-School.
II. The Lessor reserves the right in its reasonable discretion to alter, reconstruct,
expand, withdraw from or add to the Building from time to time. In the
exercise of those rights, the Lessor undertakes to use reasonable efforts to
minimize any interference with the visibility of the Premises and to use
reasonable efforts to ensure that direct entrance to and exit from the Premises
is maintained.
III. The Lessor reserves the right for itself and for all persons authorized by it, to
erect, use and maintain wiring, mains, pipes and conduits and other means of
distributing services in and through the Premises, and at all reasonable times to
enter upon the Premises for the purpose of installation, maintenance or repair,
and such entry will not be an interference with the Lessee’s possession under
this Lease.
IV. The Lessor reserves the right, when necessary by reason of accident or in order
to make repairs, alterations or improvements relating to the Premises or to
other portions of the Building to cause temporary obstruction to the Common
Areas and Facilities as reasonably necessary and to interrupt or suspend the
supply of electricity, water and other services to the Premises until the repairs,
alterations or improvements have been completed. There will be no abatement
in rent because of such obstruction, interruption or suspension provided that
the repairs, alterations or improvements are made as expeditiously as is
reasonably possible.
V. Subject to this Lease, the Lessee and its employees, customers and invitees
will have the nonexclusive right to use for their proper and intended purposes,
during business hours in common with all others entitled thereto those parts of
the Common Areas and Facilities from time to time permitted by the Lessor.
The Common Areas and Facilities and the Building will at all times be subject
to the exclusive control and management of the Lessor. The Lessor will operate
and maintain the Common Areas and Facilities and the Building in such manner
as the Lessor determines from time to time.
7. QUIET ENJOYMENT
I. The Lessor covenants that on paying the Rent and performing the covenants
contained in this Lease, the Lessee will peacefully and quietly have, hold, and
enjoy the Premises for the agreed term.
8. OVERHOLDING
I. If the Lessee continues to occupy the Premises without the written consent of
the Lessor after the expiration or other termination of the Term, then, without
any further written agreement, the Lessee will be a month-to-month Lessee at
a minimum monthly rental equal to twice the Base Rent and subject always to
all of the other provisions of this Lease insofar as the same are applicable to a
month-to-month tenancy and a tenancy from year to year will not be created
by implication of law.
9. LESSEE IMPROVEMENTS
The Lessee will obtain written permission from the Lessor before doing any of the
following:
a. painting, wallpapering, redecorating or in any way significantly altering the
appearance of the Premises;
b. removing or adding walls, or performing any structural alterations;
c. changing the amount of heat or power normally used on the Premises as well as
installing additional electrical wiring or heating units;
d. subject to this Lease, placing or exposing or allowing to be placed or exposed
anywhere inside or outside the Premises any placard, notice or sign for
advertising or any other purpose;
e. affixing to or erecting upon or near the Premises any radio or TV antenna or
tower, or satellite dish; or
f. installing or affixing upon or near the Premises any plant, equipment,
machinery or apparatus without the Lessor’s prior consent.
10. SIGNS
I. The Lessee may erect, install and maintain a sign of a kind and size in a
location, all in accordance with the Lessor’s design criteria for the Building and
as first approved in writing by the Lessor. All other signs, as well as the
advertising practices of the Lessee, will comply with all applicable rules and
regulations of the Lessor. The Lessee will not erect, install or maintain any sign
other than in accordance with this section.
11. ESTOPPEL CERTIFICATE.
I. The Lessee at any time and from time to time, upon at least ten (10) days prior
notice by Lessor, shall execute, acknowledge and deliver to Lessor, and/or to
any other person, firm, or corporation specified by Lessor, a statement
certifying that this Agreement is unmodified and in full force and effect, or if
this Agreement has been modified, then that the same is in full force and
effect except as modified and stating the modifications, stating the dates to
which the Rent have been paid, and stating whether or not there exists any
default by Lessor under this Agreement and, if so, specifying each such default.
12. RIGHT OF ENTRY
I. It is agreed and understood that the Lessor shall have the complete and
unencumbered right of entry to the Premises at any time or times for purposes
of inspecting the Premises and for the purpose of making any necessary repairs
to the building or equipment as may be required of the Lessor under the terms
of this Agreement or as may be deemed necessary with respect to the
inspection, maintenance or repair of the building.
13. INJURY AND INDEMNIFICATION
I. The Lessee will and does hereby indemnify and save harmless the Lessor of and
from all loss and damage and all actions, claims, costs, demands, expenses,
fines, liabilities and suits of any nature whatsoever for which the Lessor will or
may become liable, incur or suffer by reason of a breach, violation or
nonperformance by the Lessee of any covenant, term or provision hereof or by
reason of any construction or other liens for any work done or materials
provided or services rendered for alterations, improvements or repairs, made
by or on behalf of the Lessee to the Premises, or by reason of any injury
occasioned to or suffered by any person or damage to any property, or by
reason of any wrongful act or omission, default or negligence on the part of the
Lessee or any of its agents, concessionaires, contractors, customers,
employees, invitees or licensees in or about the Building, or any losses caused,
or contributed to, by any trespasser while that trespasser is on the Premises.
II. It is agreed between the Lessor and the Lessee that the Lessor will not be
liable for any loss, injury, or damage to persons or property resulting from
falling plaster, steam, electricity, water, rain, snow or dampness, or from any
other cause.
III. It is agreed between the Lessor and the Lessee that the Lessor will not be
liable for any loss or damage caused by acts or omissions of other Lessees or
occupants, their employees or agents or any persons not the employees or
agents of the Lessor, or for any damage caused by the construction of any
public or quasi-public works, and in no event will the Lessor be liable for any
consequential or indirect damages suffered by the Lessee.
IV. It is agreed between the Lessor and the Lessee that the Lessor will not be
liable for any loss, injury or damage caused to persons using the Common Areas
and Facilities or to vehicles or their contents or any other property on them, or
for any damage to property entrusted to its or their employees, or for the loss
of any property by theft or otherwise, and all property kept or stored in the
Premises will be at the sole risk of the Lessee.
14. GOVERNING LAW
It is the intention of the Parties to this Lease that the tenancy created by this Lease
and the performance under this Lease, and all suits and special proceedings under this
Lease, be construed in accordance with and governed, to the exclusion of the law of
any other forum, by the laws of the State of Arizona, without regard to the
jurisdiction in which any action or special proceeding may be instituted.
15. AMENDMENT OF LEASE
Any amendment or modification of this Lease or additional obligation assumed
by either party to this Lease in connection with this Lease will only be binding
if evidenced in writing signed by each party or an authorized representative of
each part
16. FORCE MAJEURE
In the event that the Lessor or the Lessee will be unable to fulfill, or shall be delayed
or prevented from the fulfillment of, any obligation in this Lease by reason of
municipal delays in providing necessary approvals or permits, the other party’s delay
in providing approvals as required in this Lease, strikes, third party lockouts, fire,
flood, earthquake, lightning, storm, acts of God or our Country’s enemies, riots,
insurrections or other reasons of like nature beyond the reasonable control of the
party delayed or prevented from fulfilling any obligation in this Lease (excepting any
delay or prevention from such fulfillment caused by a lack of funds or other financial
reasons) and provided that such party uses all reasonable diligence to overcome such
unavoidable delay, then the time period for performance of such an obligation will be
extended for a period equivalent to the duration of such unavoidable delay.
17. DAMAGE TO PREMISES
If the Premises, or any part of the Premises, will be partially damaged by fire or other
casualty not due to the Lessee’s negligence or willful act or that of the Lessee’s
employee, students, or visitor, the Premises will be promptly repaired by the Lessor
and there will be an abatement of rent corresponding with the time during which, and
the extent to which, the Premises may have been unleasable. However, if the
Premises should be damaged other than by the Lessee’s negligence or willful act or
that of the Lessee’s employee, students, or visitor to the extent that the Lessor
decides not to rebuild or repair, the term of this Lease will end and the Rent will be
prorated up to the time of the damage.
18. LESSOR’S REPAIR
The Lessor covenants and agrees to effect at its expense repairs of a structural nature
to the structural elements of the roof, foundation and outside walls of the Building,
whether occasioned or necessitated by faulty workmanship, materials, improper
installation, construction defects or settling, or otherwise, unless such repair is
necessitated by the negligence of the Lessee, its servants, agents, employees or
invitees, in which event the cost of such repairs will be paid by the Lessee together
with an administration fee of fifteen percent (15%) for the Lessor’s overhead and
supervision.
19. RULES AND REGULATIONS
The Lessee will obey all rules and regulations posted by the Lessor regarding the use
and care of the Building, parking lot and other common facilities that are provided for
the use of the Lessee in and around the Building on the Premises.
20. DISPUTE RESOLUTION
In case that the Parties cannot amicably resolve a dispute from this Agreement, the
Parties agree to resolve any such dispute or damage claim by mediation. The
mediation proceeding shall be conducted in Phoenix, Arizona, in accordance with the
rules of the American Arbitration Association then in effect with one (1) Mediator to
be selected by mutual agreement of the Parties.
21. WAIVER
No provision of this Lease will be deemed to have been waived by the Lessor unless a
written waiver from the Lessor has first been obtained and, without limiting the
generality of the foregoing, no acceptance of rent subsequent to any default and no
condoning, excusing or overlooking by the Lessor on previous occasions of any default
nor any earlier written waiver will be taken to operate as a waiver by the Lessor or in
any way to defeat or affect the rights and remedies of the Lessor.
22. SEVERABILITY
If there is a conflict between any provision of this Lease and the applicable legislation
of the State of Arizona (the ‘Act’), the Act will prevail and such provisions of the Lease
will be amended or deleted as necessary in order to comply with the Act. Further, any
provisions that are required by the Act are incorporated into this Lease.
If there is a conflict between any provision of this Lease and any form of lease
prescribed by the Act, that prescribed form will prevail and such provisions of the
lease will be amended or deleted as necessary in order to comply with that prescribed
form. Further, any provisions that are required by that prescribed form are
incorporated into this Lease.
23. ENTIRE AGREEMENT/AMENDMENTS
This contract represents the complete agreement between the parties. As such, any
changes or modifications to the contract can only be made by a mutual agreement of
the parties in writing.
IN WITNESS whereof the parties hereto have executed this Agreement the day
and year herein above written.
SIGNED by the parties: )
……………………………. ) _________________
(XXX- LESSOR) ) Signature
)
)
AND )
………………………………..
(XXX LLC – LESSEE) ) _________________
) Signature
)
)
APPENDIX A
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