Commercial Sublease Agreement Template Ontario

COMMERCIAL SUBLEASE AGREEMENT

THIS COMMERCIAL SUBLEASE AGREEMENT (the “Sublease”) is made and entered into as of this [Day] day of [Month], [Year] (the “Effective Date”), by and between:

[Sublandlord Company Name], a corporation incorporated under the laws of [Jurisdiction], having its head office at [Address] (hereinafter the “Sublandlord”);

AND

[Subtenant Company Name], a corporation incorporated under the laws of [Jurisdiction], having its head office at [Address] (hereinafter the “Subtenant”).

RECITALS

WHEREAS, the Sublandlord is the tenant under a head lease dated [Date of Head Lease] (the “Head Lease”) with [Landlord Name] (the “Master Landlord”) for the premises located at [Full Municipal Address of Premises] (the “Premises”);

WHEREAS, the Sublandlord desires to sublease to the Subtenant, and the Subtenant desires to sublease from the Sublandlord, a portion of the Premises (the “Subleased Premises”) upon the terms and conditions set forth herein;

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

1. OPERATIONAL DEFINITIONS

1.1 “Base Rent” shall mean the monthly sum of $[Dollar Amount] payable by the Subtenant to the Sublandlord. 1.2 “Common Areas” shall mean those areas of the building shared by tenants, as defined in the Head Lease. 1.3 “Force Majeure” shall mean any event beyond the reasonable control of a party, including acts of God, war, government regulation, or pandemic, preventing performance of obligations. 1.4 “Term” shall mean the period commencing on [Start Date] and expiring on [End Date], unless terminated earlier in accordance with this Sublease. 1.5 “Permitted Use” shall mean [Description of Business Activity], and for no other purpose without prior written consent.

2. SUBSTANTIVE TERMS AND OBLIGATIONS

2.1 Grant of Sublease: The Sublandlord hereby subleases to the Subtenant, and the Subtenant takes from the Sublandlord, the Subleased Premises for the Term. 2.2 Rent Payments: Subtenant shall pay Base Rent in advance on the first day of each month via [Payment Method]. A late fee of $[Dollar Amount] shall apply to any payment outstanding more than [Number] days. 2.3 Head Lease Incorporation: This Sublease is subject to the terms of the Head Lease. The Subtenant shall not perform any act that would constitute a breach of the Head Lease. 2.4 Maintenance and Repair: The Subtenant shall maintain the Subleased Premises in a clean, safe, and professional condition. Subtenant is responsible for any damage caused by its employees, agents, or invitees. 2.5 Insurance: During the Term, Subtenant shall maintain, at its sole expense, commercial general liability insurance with a minimum limit of $[Dollar Amount] per occurrence, naming the Sublandlord and Master Landlord as additional insureds.

3. DEFAULT, TERMINATION, AND REMEDIES

3.1 Events of Default: A default occurs if: (a) Subtenant fails to pay rent within [Number] days of due date; (b) Subtenant breaches any material covenant; or (c) Subtenant becomes insolvent or enters bankruptcy proceedings. 3.2 Notice and Cure: In the event of a breach, Sublandlord shall provide written notice to Subtenant. Subtenant shall have thirty (30) business days from the receipt of such notice to cure the breach. 3.3 Remedies: If the default remains uncured after the notice period, the Sublandlord may: (a) terminate this Sublease immediately upon written notice; (b) re-enter and take possession of the Subleased Premises; and (c) pursue all legal remedies available under Ontario law to recover outstanding rent and damages.

4. BOILERPLATE LEGAL PROVISIONS

4.1 Severability: If any provision of this Sublease is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect. 4.2 Entire Agreement: This Sublease constitutes the entire agreement between the Parties and supersedes all prior discussions, understandings, or agreements, whether oral or written. 4.3 Governing Law: This Sublease shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein. 4.4 Dispute Resolution: Any dispute arising out of this Sublease shall first be attempted to be resolved through good-faith negotiation. If unresolved within thirty (30) days, the dispute shall be referred to binding arbitration in [City, Ontario] under the Arbitration Act, 1991 (Ontario). 4.5 Force Majeure: Neither party shall be liable for failure to perform obligations (excluding payment obligations) due to an event of Force Majeure, provided notice is given to the other party within five (5) business days of the event.

5. FORMAL EXECUTION BLOCK

IN WITNESS WHEREOF, the parties hereto have executed this Commercial Sublease Agreement as of the Effective Date.

SUBLANDLORD: [Company Name]

Signature: __________________________ Name: [Signatory Name] Title: [Title] Date: [Date]

SUBTENANT: [Company Name]

Signature: __________________________ Name: [Signatory Name] Title: [Title] Date: [Date]