Commercial Lease Agreement Manitoba Template

COMMERCIAL LEASE AGREEMENT MANITOBA TEMPLATE

1. DOCUMENT PREAMBLE & RECITALS

THIS COMMERCIAL LEASE AGREEMENT (the "Agreement") is entered into and made effective as of this [Day] day of [Month], [Year] (the "Effective Date"), by and between:

LANDLORD: [Landlord Legal Name], a [Corporation / Partnership / Individual] having its principal place of business or residence at [Landlord Address], Manitoba (hereinafter referred to as the "Landlord"), of the First Part;

AND

TENANT: [Tenant Legal Name], a [Corporation / Partnership / Individual] having its principal place of business or residence at [Tenant Address], [Province/State] (hereinafter referred to as the "Tenant"), of the Second Part.

RECITALS:

WHEREAS the Landlord is the registered owner of the real property and improvements located within the Province of Manitoba, municipally described as [Municipal Address of Property] (the "Building");

AND WHEREAS the Landlord desires to lease to the Tenant, and the Tenant desires to lease from the Landlord, the premises situated within the Building, subject to the terms, covenants, conditions, and stipulations hereinafter set forth;

NOW, THEREFORE, in consideration of the mutual covenants, rents, terms, and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by both Parties, the Parties covenant and agree as follows:

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2. OPERATIONAL DEFINITIONS

For the purposes of this Agreement, the following terms shall have the meanings ascribed to them below, and unless otherwise indicated, grammatical variations of these terms shall have corresponding meanings:

1. "Additional Rent" means all sums of money, other than Base Rent, payable by the Tenant to the Landlord pursuant to this Agreement, including without limitation the Tenant's Pro Rata Share of Operating Costs, Property Taxes, utilities, and any other charges or assessments.
2. "Base Rent" means the fixed annual rent payable by the Tenant to the Landlord under Section 3.1, exclusive of any Additional Rent or applicable taxes.
3. "Commencement Date" means the [Day] day of [Month], [Year], being the date upon which the term of this Lease officially commences.
4. "Common Areas" means those areas and facilities within the Building and Property provided and designated by the Landlord from time to time for the general, non-exclusive use and convenience of the Tenant, other tenants, and their respective invitees, employees, and customers (including lobbies, corridors, elevators, parking lots, and sidewalks).
5. "Default" means any breach, failure, or omission by the Tenant to observe, perform, or keep any of the terms, covenants, conditions, or obligations contained in this Agreement.
6. "Leased Premises" means that portion of the Building structurally outlined in Schedule "A" attached hereto, municipally known as Unit [Unit Number], comprising approximately [Number] rentable square feet of floor area.
7. "Operating Costs" means the total reasonable costs and expenses incurred or borne by the Landlord in operating, maintaining, managing, repairing, insuring, and administering the Building and Property, calculated in accordance with generally accepted accounting principles (GAAP) consistently applied.
8. "Property" means the parcel of land upon which the Building is situated, legally described as [Legal Land Description], in the Province of Manitoba.
9. "Property Taxes" means all real property taxes, local improvement rates, municipal taxes, levies, and school taxes assessed or imposed upon or in respect of the Property by any competent municipal, provincial, or federal authority.
10. "Term" means the duration of this Lease, commencing on the Commencement Date and expiring on the [Day] day of [Month], [Year], unless sooner terminated in accordance with the provisions hereof.

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3. SUBSTANTIVE TERMS & OBLIGATIONS

3.1 Demise and Term

The Landlord hereby leases the Leased Premises to the Tenant, and the Tenant hereby takes and leases the Leased Premises from the Landlord, for and during the Term, subject to the rents, covenants, conditions, and provisions herein stipulated.

3.2 Base Rent

1. The Tenant shall pay to the Landlord as Base Rent the annual sum of [Dollar Amount], payable in equal consecutive monthly installments of [Dollar Amount] in advance on the first (1st) day of each and every calendar month during the Term.
2. If the Term commences on a day other than the first day of a calendar month, the Base Rent for the partial first month shall be prorated on a per diem basis and paid on the Commencement Date.

3.3 Additional Rent and Operating Costs

1. In addition to the Base Rent, the Tenant shall pay to the Landlord as Additional Rent the Tenant's Pro Rata Share ([Percentage]%) of all Operating Costs and Property Taxes for the Property.
2. The Landlord shall provide the Tenant with an annual good-faith estimate of the Operating Costs and Property Taxes for each calendar year. The Tenant shall pay one-twelfth (1/12th) of such estimated amount monthly, concurrently with the payment of Base Rent. Following the end of each calendar year, the Landlord shall furnish a reconciliation statement; any underpayment shall be paid by the Tenant within thirty (30) days of receipt, and any overpayment shall be credited against future Additional Rent installments.

3.4 Security Deposit

Upon the execution of this Agreement, the Tenant shall deposit with the Landlord the sum of [Dollar Amount] as a security deposit (the "Security Deposit"). The Security Deposit shall be held by the Landlord without liability for interest as security for the faithful performance by the Tenant of all provisions of this Agreement. If the Tenant defaults, the Landlord may apply all or part of the Security Deposit to cure such default, without prejudice to any other remedies available.

3.5 Permitted Use

The Leased Premises shall be used and occupied exclusively for the purpose of [Specific Permitted Business Use] and for no other purpose whatsoever without the prior written consent of the Landlord, which consent shall not be unreasonably withheld.

3.6 Maintenance, Repairs, and Alterations

1. Landlord's Obligations: The Landlord shall maintain, repair, and replace the structural elements of the Building, including the foundations, exterior walls, roof, load-bearing columns, and the core building systems (electrical, mechanical, plumbing) up to the point of entry to the Leased Premises, as well as the Common Areas.
2. Tenant's Obligations: The Tenant shall, at its sole cost and expense, maintain the interior of the Leased Premises in a clean, sanitary, safe, and good condition, reasonable wear and tear excepted.
3. Alterations: The Tenant shall not make any structural alterations, additions, or improvements to the Leased Premises without obtaining the Landlord's prior written approval, such approval not to be unreasonably withheld or delayed.

3.7 Compliance with Laws

The Tenant shall, at its own expense, promptly comply with all applicable federal, provincial, and municipal laws, bylaws, regulations, ordinances, and codes relating to the Leased Premises, the environment, occupational health and safety, and the business conducted therein.

3.8 Insurance

1. Tenant's Insurance: The Tenant shall, throughout the Term and at its sole expense, maintain comprehensive commercial general liability insurance with a minimum limit of [Dollar Amount] per occurrence, property insurance covering all of the Tenant's trade fixtures, inventory, and leasehold improvements, and tenant's legal liability insurance.
2. Policy Requirements: All policies shall name the Landlord as an additional insured and shall include a waiver of subrogation rights against the Landlord. Proof of insurance shall be delivered to the Landlord prior to the Commencement Date.

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4. DEFAULT, TERMINATION, AND REMEDIES

4.1 Events of Default

The occurrence of any one or more of the following events shall constitute an "Event of Default" under this Agreement:

1. The failure of the Tenant to pay Base Rent, Additional Rent, or any other monetary sum due hereunder within five (5) business days after written notice from the Landlord that the same is overdue.
2. The failure of the Tenant to observe, perform, or keep any other non-monetary covenant, term, or condition of this Agreement for a period of thirty (30) business days after written notice specifying the nature of such default has been delivered to the Tenant.
3. The making by the Tenant of an assignment for the benefit of creditors, the filing of a petition in bankruptcy or insolvency, the appointment of a receiver or trustee for all or substantially all of the Tenant's assets, or the initiation of any winding-up or liquidation proceedings.
4. The abandonment or vacation of the Leased Premises by the Tenant for a consecutive period exceeding fifteen (15) days.

4.2 Notice and Cure Periods

Except where a specific time frame is expressly provided in this Agreement (such as the five (5) business day period for monetary defaults), the Tenant shall have a period of thirty (30) business days following receipt of written notice from the Landlord to cure any non-monetary Event of Default; provided, however, that if the default is of such a nature that it cannot reasonably be cured within thirty (30) business days, the Tenant shall not be in default if it commences to cure the default within such period and diligently and continuously prosecutes the same to completion.

4.3 Remedies Upon Default

Upon the occurrence of an Event of Default that remains uncured following the applicable notice and cure period, the Landlord may, at its sole option and without prejudice to any other rights or remedies provided by law or equity, exercise any or all of the following remedies:

1. Terminate this Lease immediately upon written notice to the Tenant, re-enter the Leased Premises, and expel or remove the Tenant and any other occupants, without being liable for any prosecution or damages therefor.
2. Declare the entire balance of Base Rent and Additional Rent for the remainder of the Term to be immediately due and payable.
3. Re-let the Leased Premises or any part thereof for such rent and upon such terms as the Landlord may reasonably deem advisable, applying the proceeds first to the costs of re-letting and second to the payment of rent due hereunder, with the Tenant remaining liable for any deficiency.
4. Cure the default on behalf of the Tenant, in which event all reasonable costs and expenses incurred by the Landlord in so doing shall be immediately reimbursed by the Tenant as Additional Rent.

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5. BOILERPLATE LEGAL PROVISIONS

5.1 Severability

If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court or tribunal of competent jurisdiction, such provision shall be severed herefrom, and the remaining provisions of this Agreement shall remain in full force and effect, provided that the economic and legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party.

5.2 Entire Agreement

This Agreement, together with any schedules and exhibits attached hereto, constitutes the entire agreement between the Landlord and the Tenant pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written. There are no warranties, representations, or other agreements between the Parties in connection with the subject matter except as specifically set forth herein.

5.3 Force Majeure

Neither Party shall be held liable or deemed in default for any failure or delay in performing its obligations under this Agreement (other than the obligation to pay rent or money) if such failure or delay arises from acts of God, war, terrorism, civil commotion, labor disputes, fire, flood, extreme weather events, government restrictions, or any other cause beyond the reasonable control of the affected Party (a "Force Majeure Event"). The time for performance shall be extended for a period equal to the duration of the delay caused by the Force Majeure Event.

5.4 Governing Law and Jurisdiction

This Agreement shall be construed, interpreted, and governed in accordance with the laws in force in the Province of Manitoba and the federal laws of Canada applicable therein. Each Party irrevocably submits to the exclusive jurisdiction of the courts of the Province of Manitoba sitting in the City of Winnipeg for the resolution of any dispute arising out of or relating to this Agreement.

5.5 Dispute Resolution

1. In the event of any dispute, controversy, or claim arising out of or relating to this Agreement, the Parties shall first attempt in good faith to resolve the matter through direct negotiations between their designated senior representatives.
2. If the dispute is not resolved through direct negotiations within thirty (30) days of the initial written notice of the dispute, either Party may submit the dispute to binding arbitration administered by a single arbitrator in Manitoba in accordance with the Arbitration Act (Manitoba), and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

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6. FORMAL EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties hereto have executed this Commercial Lease Agreement under seal, attested by their respective duly authorized officers or signatories, as of the Effective Date first written above.

LANDLORD:

[Landlord Entity Name]

Per: ___________________________________
Name: [Signatory Name]
Title: [Signatory Title]
Date: [Date]
(I/We have the authority to bind the corporation)

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TENANT:

[Tenant Entity Name]

Per: ___________________________________
Name: [Signatory Name]
Title: [Signatory Title]
Date: [Date]
(I/We have the authority to bind the corporation)