Commercial Lease Agreement Ontario Template Word

COMMERCIAL LEASE AGREEMENT ONTARIO TEMPLATE WORD

1. DOCUMENT PREAMBLE & RECITALS

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

LANDLORD: [Landlord Legal Business Name], a corporation incorporated under the laws of the Province of Ontario, having its principal place of business at [Landlord Street Address, City, ON, Postal Code] (hereinafter referred to as the "Landlord"),

-and-

TENANT: [Tenant Legal Business Name], a corporation incorporated under the laws of the [Province/State of Incorporation], having its principal place of business at [Tenant Street Address, City, Province, Postal Code] (hereinafter referred to as the "Tenant").

RECITALS:

WHEREAS the Landlord is the registered owner of the real property and building located at [Property Street Address, City], in the Province of Ontario, more particularly described in Schedule "A" attached hereto (the "Building");

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

NOW, THEREFORE, in consideration of the mutual covenants, obligations, and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged by the Parties, the Landlord and Tenant covenant and agree as follows:

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2. OPERATIONAL DEFINITIONS

For the purposes of this Lease, unless the context otherwise requires, the following terms shall have the respective meanings set forth below:

1. "Additional Rent" means all sums of money, other than Base Rent, payable by the Tenant to the Landlord pursuant to the terms of this Lease, including without limitation the Tenant's Proportionate Share of Operating Costs, Realty Taxes, utility charges, and any other applicable taxes, levies, or default charges.
2. "Base Rent" means the fixed minimum annual rent payable by the Tenant to the Landlord, as set forth in Section 3.2, exclusive of all applicable taxes and Additional Rent.
3. "Commencement Date" means the [Day] day of [Month], [Year], being the date upon which the term of this Lease officially commences and from which all obligations of the Tenant, including the payment of rent, shall accrue.
4. "Common Areas" means those areas, facilities, utilities, and improvements provided, maintained, and designated by the Landlord from time to time for the general use, convenience, and benefit of all tenants of the Building and their respective invitees, employees, and customers, including but not limited to lobbies, hallways, elevators, stairwells, parking structures, and landscaped grounds.
5. "Default" means any breach, violation, or non-fulfillment by the Tenant of any covenant, obligation, term, or condition contained in this Lease.
6. "Event of Default" has the meaning ascribed to it in Section 4.1 of this Lease.
7. "Expirty Date" means the [Day] day of [Month], [Year], unless this Lease is sooner terminated in accordance with its provisions or by operation of law.
8. "HVAC" means the heating, ventilation, and air conditioning systems serving the Leased Premises and/or the Building.
9. "Interest Rate" means the prime commercial lending rate of interest per annum charged by the Landlord's principal commercial bank in Toronto, Ontario, plus [Number] percent ([Number]%) per annum, calculated monthly, or the maximum rate permitted by applicable law, whichever is less.
10. "Leased Premises" means that portion of the Building designated as Unit Number [Unit/Suite Number], comprising approximately [Number] rentable square feet, located on the [Floor Number] floor, as delineated on the floor plan attached hereto as Schedule "B".
11. "Operating Costs" means the total reasonable and necessary costs and expenses incurred or borne by the Landlord in operating, maintaining, managing, repairing, insuring, and administering the Building and Common Areas, calculated in accordance with generally accepted accounting principles (GAAP) consistently applied, as further detailed in Section 3.
12. "Realty Taxes" means all real property taxes, rates, duties, levies, charges, and local improvement rates assessed, imposed, or charged against the Building, the Leased Premises, or the land upon which they are situated by any lawful municipal, provincial, federal, or school taxing authority.
13. "Security Deposit" means the sum of [Written Dollar Amount] ($[Numeric Amount]) deposited by the Tenant with the Landlord pursuant to Section 3.
14. "Term" means the initial term of this Lease, commencing on the Commencement Date and expiring on the Expiry Date, inclusive, unless sooner terminated or renewed pursuant to the provisions of this Lease.
15. "Tenant's Proportionate Share" means the proportion that the rentable area of the Leased Premises ([Number] square feet) bears to the total rentable area of the Building ([Number] square feet), expressed as a percentage, which is hereby agreed to be [Number]%.

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3. SUBSTANTIVE TERMS & OBLIGATIONS

3.1 Grant and Term

The Landlord hereby leases the Leased Premises to the Tenant, and the Tenant hereby takes and hires the Leased Premises from the Landlord, for and during the Term, to be used and occupied solely for the Permitted Use and for no other purpose whatsoever, subject to and upon the covenants and conditions contained herein.

3.2 Rent and Payment Mechanics

1. Base Rent: The Tenant covenants and agrees to pay to the Landlord Base Rent during the Term, without any prior demand, deduction, set-off, or abatement whatsoever, in lawful money of Canada, in equal monthly installments of [Written Dollar Amount] ($[Numeric Amount]), payable in advance on the first (1st) day of each and every calendar month during the Term.
2. Additional Rent: The Tenant shall pay to the Landlord as Additional Rent the Tenant's Proportionate Share of Operating Costs and Realty Taxes. Additional Rent shall be estimated annually by the Landlord and paid in equal monthly installments on the first day of each month alongside the Base Rent. Within one hundred twenty (120) days following the end of each calendar year, the Landlord shall furnish the Tenant with a reconciliation statement of actual Operating Costs and Realty Taxes. Any shortfall shall be paid by the Tenant within thirty (30) days of receipt of such statement; any overpayment shall be credited against the next installments of Additional Rent due.
3. Harmonized Sales Tax (HST): The Tenant shall pay to the Landlord, concurrently with the payment of Base Rent and Additional Rent, all applicable federal and provincial taxes, including the Harmonized Sales Tax (HST), levied or imposed upon the rental payments.
4. Late Charges: If any installment of Base Rent or Additional Rent is not received by the Landlord within five (5) business days of its due date, the Tenant shall pay to the Landlord a late administration fee of [Dollar Amount] or [Number] percent ([Number]%) of the overdue amount, whichever is greater, together with interest at the Interest Rate calculated from the due date until paid in full.

3.3 Security Deposit

Upon the execution of this Lease, the Tenant shall deposit with the Landlord the Security Deposit as security for the faithful performance and observance by the Tenant of all terms, covenants, and conditions of this Lease. The Landlord may apply all or part of the Security Deposit to cure any Event of Default or to compensate the Landlord for any loss or damage sustained resulting from the Tenant's breach. If any portion is so applied, the Tenant shall, within ten (10) business days after written demand, deposit cash with the Landlord in an amount sufficient to restore the Security Deposit to its original sum. The Security Deposit, without interest, shall be returned to the Tenant within sixty (60) days following the expiration of the Term and the peaceful surrender of the Leased Premises to the Landlord in the condition required hereunder.

3.4 Permitted Use

The Leased Premises shall be used and occupied exclusively for [Specific Permitted Commercial Use, e.g., general administrative offices, software development, professional services] and for no other purpose without the prior written consent of the Landlord, which consent may be unreasonably withheld. The Tenant shall not use, permit, or suffer the Leased Premises or any part thereof to be used for any illegal, hazardous, or noxious activity, or in any manner that violates municipal bylaws, provincial statutes, or federal laws, or that voids or increases the premium rate of any insurance policy maintained by the Landlord.

3.5 Maintenance, Repairs, and Alterations

1. Landlord's Obligations: The Landlord shall maintain, repair, and replace, as necessary, the structural elements of the Building, including the foundation, exterior walls, roof, load-bearing columns, and the core mechanical, electrical, plumbing, and HVAC systems servicing the Building generally, the costs of which shall be included in Operating Costs to the extent permitted.
2. Tenant's Obligations: The Tenant shall, at its sole cost and expense, maintain, repair, and keep the interior of the Leased Premises, including all non-structural partitions, doors, windows, interior glass, floor coverings, and trade fixtures, in good, clean, safe, and tenantable 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 consent, which consent shall not be unreasonably withheld for non-structural interior alterations. All approved alterations, improvements, and fixtures (excluding movable trade fixtures) installed by the Tenant shall, upon installation, become the property of the Landlord, unless the Landlord elects by written notice to require the Tenant to remove the same at the expiration of the Term, restoring the Leased Premises to its original condition at the Tenant's sole expense.

3.6 Insurance and Indemnity

1. Tenant's Insurance: The Tenant shall, at its sole cost and expense, take out and maintain throughout the Term:
   • Commercial General Liability (CGL) insurance insuring against claims for bodily injury, personal injury, death, or property damage occurring in, on, or about the Leased Premises, with a limit of not less than Five Million Dollars ($5,000,000.00) inclusive per occurrence.
   • All-risks property insurance covering all leasehold improvements, trade fixtures, furniture, and equipment installed by or for the Tenant within the Leased Premises for their full replacement value.
2. Policy Requirements: All insurance policies procured by the Tenant shall name the Landlord (and any designated mortgagees) as additional insureds and shall contain a cross-liability clause and a waiver of subrogation rights against the Landlord.
3. Indemnification: The Tenant shall indemnify and save harmless the Landlord from and against any and all claims, actions, damages, liabilities, costs, and expenses (including legal fees on a solicitor-and-client scale) arising from any injury to persons or property occurring in or about the Leased Premises or resulting from any negligent act, omission, or willful misconduct of the Tenant, its agents, employees, contractors, or invitees, or any breach of this Lease by the Tenant.

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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 Lease:

1. The failure of the Tenant to pay any installment of Base Rent, Additional Rent, or any other monetary sum due hereunder within five (5) business days after written notice of non-payment from the Landlord.
2. The failure of the Tenant to observe, perform, or keep any other term, covenant, or condition of this Lease to be observed or performed by the Tenant, and such failure continues for a period of thirty (30) business days after written notice thereof from the Landlord to the Tenant (provided that if the default is of a nature that it cannot reasonably be cured within thirty (30) business days, the Tenant shall not be in default if it commences curing within said period and diligently and continuously prosecutes the same to completion).
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, manager, or trustee for all or substantially all of the Tenant's assets, or the commencement of any winding-up, liquidation, or dissolution proceedings under the Bankruptcy and Insolvency Act (Canada) or the Companies' Creditors Arrangement Act (Canada).
4. The abandonment or vacation of the Leased Premises by the Tenant for a consecutive period exceeding fifteen (15) days.
5. The seizure, attachment, or execution levied upon the Tenant's goods and chattels within the Leased Premises that is not discharged within ten (10) business days.

4.2 Landlord's Remedies upon Default

Upon the occurrence of any Event of Default, and in addition to any other rights or remedies available to the Landlord at law or in equity, the Landlord may, at its option, exercise any or all of the following legal remedies:

1. Termination: Terminate this Lease by giving written notice to the Tenant, whereupon this Lease shall terminate, and the Tenant shall immediately yield up and surrender possession of the Leased Premises to the Landlord.
2. Re-entry: Re-enter the Leased Premises by force, if necessary, without being liable for prosecution or damages, and expel the Tenant and all occupants therefrom, and repossess the Leased Premises.
3. Re-letting: 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 derived therefrom first toward the payment of the expenses of re-entry and re-letting, second toward the payment of Base Rent and Additional Rent due hereunder, with the Tenant remaining fully liable for any resulting deficiency.
4. Acceleration: Declare all Base Rent, Additional Rent, and other charges for the remainder of the Term to be immediately due and payable, and sue for and recover the same.
5. Cure by Landlord: Perform or satisfy any defaulted obligation of the Tenant, and all costs, expenses, and disbursements incurred by the Landlord in so doing, together with interest at the Interest Rate, shall be immediately due and payable by the Tenant as Additional Rent.

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5. BOILERPLATE LEGAL PROVISIONS

5.1 Severability

If any article, section, clause, paragraph, or provision of this Lease, or the application thereof to any party or circumstance, shall be held to any extent to be invalid, illegal, or unenforceable by a court or tribunal of competent jurisdiction, the remainder of this Lease, or the application of such provision to parties or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each remaining provision of this Lease shall be valid and enforced to the fullest extent permitted by law.

5.2 Entire Agreement

This Lease, including all attached schedules and addenda, constitutes the entire agreement between the Landlord and the Tenant pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written, of the parties. There are no warranties, representations, covenants, or conditions, express or implied, statutory or otherwise, except as expressly set forth in this Lease. This Lease may not be amended, modified, or supplemented except by a written instrument duly executed by authorized representatives of both Parties.

5.3 Force Majeure

Except as otherwise expressly provided in this Lease, if either Party is delayed, hindered, or prevented from the performance of any obligation required hereunder (excluding the payment of Base Rent, Additional Rent, or any other monetary obligations) by reason of acts of God, strikes, lockouts, labor disputes, civil commotion, war, acts of terrorism, epidemics, pandemics, government restrictions, regulatory orders, fire, or other casualty or cause beyond the reasonable control of the Party claiming relief (a "Force Majeure Event"), then the performance of such obligation shall be excused for the period of the delay, and the period for the performance of such obligation shall be extended for a period equivalent to the duration of such delay.

5.4 Governing Law and Attornment

This Lease shall be interpreted, construed, governed, and enforced in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein, without regard to conflict of law principles. Each Party irrevocably attorns and submits to the exclusive jurisdiction of the courts of the Province of Ontario sitting in the City of [City Name, e.g., Toronto] in respect of any legal action, suit, or proceeding arising out of or relating to this Lease.

5.5 Dispute Resolution

Any dispute, controversy, or claim arising out of, relating to, or in connection with this Lease, including any question regarding its formation, existence, breach, validity, or termination, shall, failing amicable resolution between senior representatives of the Parties within thirty (30) days, be submitted to binding arbitration administered by the ADR Institute of Canada (ADRIC) in accordance with its National Arbitration Rules. The place of arbitration shall be [City, Ontario], and the proceedings shall be conducted in the English language before a single mutually agreed-upon arbitrator. The award rendered by the arbitrator shall be final, binding, and unappealable (except on grounds of fraud or manifest error of law), and judgment upon the award may be entered in any court having jurisdiction thereof.

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6. FORMAL EXECUTION BLOCK

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

LANDLORD: [Landlord Legal Business Name]

Per: _________________________________________
Name: [Signatory Name]
Title: [Signatory Title, e.g., President / Director]
I/We have the authority to bind the Corporation.

Date: ________________________________________

TENANT: [Tenant Legal Business Name]

Per: _________________________________________
Name: [Signatory Name]
Title: [Signatory Title, e.g., Chief Executive Officer]
I/We have the authority to bind the Corporation.

Date: ________________________________________