Commercial Lease Extension Agreement Template

COMMERCIAL LEASE EXTENSION AGREEMENT TEMPLATE

1. DOCUMENT PREAMBLE & RECITALS

This Commercial Lease Extension Agreement (the "Agreement") is entered into and made effective as of [Effective Date] (the "Effective Date"), by and between [Landlord Entity Name], a [State of Incorporation/Organization] [corporation/limited liability company/partnership], having its principal place of business at [Landlord Address] ("Landlord"), and [Tenant Entity Name], a [State of Incorporation/Organization] [corporation/limited liability company/partnership], having its principal place of business at [Tenant Address] ("Tenant").

RECITALS

WHEREAS, Landlord and Tenant entered into that certain Commercial Lease Agreement dated [Original Lease Date] (the "Original Lease"), pursuant to which Landlord leased to Tenant, and Tenant leased from Landlord, those certain premises located at [Property Street Address, City, State, Zip], as more particularly described in the Original Lease (the "Premises"); and

WHEREAS, the initial term of the Original Lease is set to expire on [Original Lease Expiration Date] (the "Expiration Date"); and

WHEREAS, Landlord and Tenant desire to extend the term of the Original Lease and modify certain terms and conditions of the Original Lease upon the terms and conditions hereinafter set forth; and

WHEREAS, each Party represents that it has full corporate or organizational authority to enter into this Agreement, and that all necessary corporate or organizational actions have been duly taken to authorize the execution and delivery hereof.

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

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2. OPERATIONAL DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings ascribed to them below. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Original Lease.

1. "Additional Rent" means all sums of money, other than Base Rent, that Tenant is obligated to pay to Landlord under the terms of the Original Lease and this Agreement, including, without limitation, Operating Expenses, utilities, taxes, and insurance charges.
2. "Base Rent" means the fixed monthly or annual monetary consideration payable by Tenant to Landlord for the use and occupancy of the Premises, as adjusted pursuant to Section 3.2 of this Agreement.
3. "Effective Date" means [Effective Date], the date upon which this Agreement is fully executed and delivered by both Parties.
4. "Extended Term" means the secondary lease term commencing immediately upon the expiration of the original lease term on [Original Lease Expiration Date], and expiring on [New Expiration Date] (the "Extended Term Expiration Date"), unless sooner terminated pursuant to the terms of the Original Lease or this Agreement.
5. "Force Majeure Event" means any act of God, war, terrorism, civil commotion, labor dispute, strike, fire, flood, epidemic, pandemic, governmental restriction, or any other cause beyond the reasonable control of the affected Party, which prevents or materially hinders such Party's performance of its obligations hereunder.
6. "Landlord" means [Landlord Entity Name], and its respective successors and permitted assigns.
7. "Original Lease" means that certain Commercial Lease Agreement dated [Original Lease Date] between Landlord and Tenant for the Premises.
8. "Premises" means that certain real property and improvements commonly known as [Property Street Address], comprising approximately [Square Footage] rentable square feet, as defined in the Original Lease.
9. "Security Deposit" means the financial security instrument or cash deposit held by Landlord pursuant to the Original Lease to secure Tenant's faithful performance of its obligations thereunder and under this Agreement.
10. "Tenant" means [Tenant Entity Name], and its respective successors and permitted assigns.

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3. SUBSTANTIVE TERMS & OBLIGATIONS

3.1 Extension of Term

Landlord and Tenant hereby agree to extend the term of the Original Lease for the Extended Term, commencing on [Day after Original Expiration Date] (the "Extended Term Commencement Date") and expiring at 11:59 local time on [Extended Term Expiration Date] (the "Extended Term Expiration Date"), unless sooner terminated in accordance with the provisions of the Original Lease or this Agreement.

3.2 Base Rent Adjustments

Commencing on the Extended Term Commencement Date and continuing throughout the duration of the Extended Term, Tenant shall pay to Landlord Base Rent in accordance with the following schedule:

• From [Start Date] to [End Date]: [Dollar Amount] per month.
• From [Start Date] to [End Date]: [Dollar Amount] per month.
• From [Start Date] to [End Date]: [Dollar Amount] per month.

Base Rent shall be payable in advance on the first (1st) day of each calendar month, without prior notice, demand, deduction, or setoff, in lawful money of the United States of America, to Landlord at the address designated for notice herein or to such other address or account as Landlord may designate in writing.

3.3 Additional Rent and Operating Expenses

Throughout the Extended Term, Tenant shall continue to pay all Additional Rent, including its proportionate share of Operating Expenses, real estate taxes, and insurance costs, in strict accordance with the terms, formulas, and timing mechanisms set forth in the Original Lease.

3.4 Condition of Premises

Tenant accepts the Premises in their "AS-IS, WHERE-IS" condition as of the Effective Date. Landlord shall have no obligation to perform, fund, or construct any tenant improvements, alterations, or repairs to the Premises in connection with this Agreement, except as expressly provided in the Original Lease or as separately agreed upon in a contemporaneous written improvement agreement executed by both Parties.

3.5 Security Deposit Modifications

Tenant acknowledges and agrees that Landlord shall continue to hold the existing Security Deposit in the amount of [Dollar Amount] currently on deposit, pursuant to the terms and conditions of the Original Lease. [If applicable: Concurrently with the execution of this Agreement, Tenant shall deposit with Landlord the sum of [Dollar Amount] to increase the total Security Deposit to [Total Dollar Amount] to reflect the increased Base Rent.]

3.6 Tenant Representations and Warranties

Tenant represents and warrants that:

1. Tenant is duly organized, validly existing, and in good standing under the laws of its state of organization and is authorized to do business in the State of [Jurisdiction].
2. The execution and delivery of this Agreement have been duly authorized by all necessary corporate or organizational action on the part of Tenant.
3. To the best of Tenant's knowledge, Landlord is not currently in default under any provision of the Original Lease.
4. Tenant has not assigned, sublet, transferred, or encumbered its interest in the Original Lease or the Premises.

3.7 Landlord Representations and Warranties

Landlord represents and warrants that:

1. Landlord is the fee simple owner of the Premises (or holds a master leasehold interest superior to the Original Lease) with full power and authority to lease the Premises to Tenant.
2. The execution and delivery of this Agreement have been duly authorized by all necessary action on the part of Landlord.
3. To the best of Landlord's knowledge, Tenant is not currently in default of any monetary or non-monetary obligation under the Original Lease.

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4. DEFAULT, TERMINATION, AND REMEDIES

4.1 Events of Default

The occurrence of any of the following shall constitute an "Event of Default" under this Agreement and the Original Lease:

1. Failure by Tenant to pay Base Rent, Additional Rent, or any other monetary obligation when due, where such failure continues for a period of five (5) business days after written notice from Landlord.
2. Failure by Tenant or Landlord to observe, perform, or comply with any material non-monetary covenant, term, or condition of this Agreement or the Original Lease, where such failure continues for a period of thirty (30) business days after written notice specifying the breach from the non-defaulting Party; provided, however, that if the nature of such non-monetary default is such that it cannot reasonably be cured within thirty (30) business days, the defaulting Party shall not be in default if it commences curing within such thirty (30) business day period and thereafter diligently and continuously prosecutes such cure to completion.
3. The filing of a petition by or against either Party under the U.S. Bankruptcy Code or any similar state insolvency law, the appointment of a receiver for all or substantially all of a Party's assets, or any general assignment for the benefit of creditors.

4.2 Notice and Cure Periods

Except as explicitly modified herein, all notice requirements and cure periods established under the Original Lease shall apply equally to any alleged breach or default under this Agreement. No default notice shall be deemed legally effective unless delivered in strict accordance with the notice provisions of the Original Lease and this Agreement.

4.3 Remedies Upon Default

Upon the occurrence and during the continuance of an Event of Default, the non-defaulting Party may exercise any and all rights and remedies available at law, in equity, or under the terms of the Original Lease, including, without limitation:

1. Terminating this Agreement and the Original Lease upon written notice to the defaulting Party.
2. Recovering all damages proximately caused by the default, including past-due rent, accelerated future rent (discounted to present value where required by law), administrative fees, and reasonable attorneys' fees and court costs.
3. Pursuing injunctive relief or specific performance to compel compliance with the terms hereof.

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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 modified to the minimum extent necessary to make it valid, legal, and enforceable. If such modification is not possible, the affected provision shall be deemed severed from this Agreement, and the remaining provisions shall remain in full force and effect, provided that the fundamental economic and legal bargain of the Parties is not materially impaired.

5.2 Entire Agreement

This Agreement, together with the Original Lease (including all exhibits, schedules, and prior amendments incorporated therein), constitutes the entire agreement between Landlord and Tenant with respect to the subject matter hereof and supersedes all prior negotiations, understandings, representations, and agreements, whether oral or written. No oral statement or prior written matter extraneous to this Agreement shall have any force or effect.

5.3 Force Majeure

Neither Landlord nor Tenant shall be held liable or responsible for any failure or delay in fulfilling or performing any term of this Agreement (excluding, however, the obligation of Tenant to pay Base Rent or Additional Rent) when and to the extent such failure or delay is caused by or results from a Force Majeure Event. The time for performance of any affected obligation shall be extended for a period equal to the duration of the delay caused by the Force Majeure Event.

5.4 Governing Law and Forum Selection

This Agreement shall be construed, interpreted, and governed by the laws of the State of [Jurisdiction], without regard to its conflict of laws principles. Any legal action, suit, or proceeding arising out of or relating to this Agreement or the Original Lease shall be instituted exclusively in the state or federal courts located in [County Name] County, [State], and each Party irrevocably submits to the exclusive personal jurisdiction of such courts in any such action, suit, or proceeding.

5.5 Dispute Resolution and Arbitration

[Optional: If the Parties elect mandatory arbitration, insert the following clause; otherwise delete and insert "Intentionally Omitted."] Any dispute, controversy, or claim arising out of or relating to this contract, including the formation, interpretation, breach, termination, or validity thereof, shall be settled by binding arbitration administered by the [Arbitration Body, e.g., American Arbitration Association] in accordance with its Commercial Arbitration Rules. The place of arbitration shall be [City, State], and the proceedings shall be conducted by a single neutral arbitrator. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

5.6 Amendments and Waivers

No amendment, modification, change, or purported waiver of any provision of this Agreement shall be valid unless executed in a written instrument explicitly referencing this Agreement and signed by the authorized representatives of both Landlord and Tenant. No failure or delay by either Party in exercising any right, power, or privilege hereunder shall operate as a waiver thereof.

5.7 Counterparts and Electronic Signatures

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures delivered by facsimile, PDF, or electronic signature platforms (such as DocuSign or Adobe Sign) shall be deemed legally binding and possess the same legal force and effect as original wet-ink signatures.

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6. FORMAL EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties hereto have caused this Commercial Lease Extension Agreement to be duly executed by their respective authorized officers or representatives as of the Effective Date first written above.

LANDLORD:

[Landlord Entity Name]

By: __________________________________________ Name: [Landlord Signatory Name] Title: [Landlord Signatory Title] Date: [Date]

TENANT:

[Tenant Entity Name]

By: __________________________________________ Name: [Tenant Signatory Name] Title: [Tenant Signatory Title] Date: [Date]