Commercial Application

COMMERCIAL LEASE

LEASE: made this        day of           , 19   .

BETWEEN:                                           a body corporate with a registered office at the City of                      in the Province of  (hereinafter called “the Lessor”)

OF THE FIRST PART

– and –

a body corporate with a registered office at the City of          in the Province of          (hereinafter called “the lessee”)

OF THE SECOND PART

WHEREAS

(a)  The Lessor is the owner if the building (hereinafter called “building          ) located on lot        , Plan            in the City of Calgary in the Province of Alberta on leased land at                            ;

(b)  The Lessor has agreed to lease to the Lessee and the Lessee has agreed to lease from the Lessor Bay No.            comprising          square feet of building         , as outlined in red on a plan hereto attached and marked as schedule “A”, (hereinafter called the “demised premises”) together with the right in common with all and referred to as the common areas;

THE LESSOR AND THE LESSEE AGREE AS FOLLOWS:

1. GRANT:

The Lessor hereby leases to the Lessee the demised premises to be held by it, the Lessee                                                            said                                                  , as Lessee, for the purposes of maintaining an office                     , for the term hereinafter set forth and subject to the terms and conditions of the lease.

2. TERM:

This lease shall be for a term of          years commencing on the 1st day of           , 19   .

3. MINIMUM RENT:

The Lessee agrees to pay to the Lessor minimum annual rent in the amount of $           in Canadian currency at the City of Calgary in the Province of Alberta for the demised premises by monthly payments in the amount of $         each, without any deduction whatsoever, in advance on the 1st day of each and every month commencing on the 1st day of         , 19    and continuing on the 1st day of each and every month in each and every year up to and including the 1st day of         , 19   .

4. This rental agreement is based                        on                  completing as agreed an office area comprising of            reception area,           offices,          washroom and board room including all fixtures, materials and labour, using good building practices.  All permits, inspections and approvals are building practices.  All permits, inspections and approvals are                            responsibility.

The above plans must be approved by and construction must be completed without cost to              Bay            is self contained and it is the Lessees responsibility for Gas, Water, Sewer, Electricity and the payment of these utilities.  A garbage bin will be supplied and you will be charged a share cost with other tenants for removal of your waste.

The Lessee shall not be under any obligation to pay any franchise, excise, inheritance or income taxes or advertising expenses which are or may become payable by the Lessor or which may be imposed against the Lessor by reason of any law now in force or hereafter enacted.

If the Lessee neglects or omits to pay any of the amounts set out in sub paragraph 4, the Lessor may pay them, or any of them, and then charge the amount so paid to the Lessee, who shall forthwith pay them to the Lessor. The Lessor may add the amounts paid by it to the rent and recover by all remedies available to it for the recovery of rent in arrears to the same extent and effect as if the said amounts were, in effect, rent.

5. SECURITY DEPOSIT:

The Lessee agrees to deposit with the Lessor on the execution of this Lease the sum of            which shall be a security deposit to be held in trust by the Lessor, until such time as the observance and performance of the terms and conditions of this lease, the Lessor may appropriate the security deposit, or as much of it as of or in connection with the Lessee’s breach.

6. SUBLETTING AND ASSIGNMENT:

The Lessee will not, during the term of this lease, transfer, assign, sublet or part with possession of the demised the said premises, or any part thereof, to be transferred, assigned or sublet, without the consent in writing of the Lessor first had and obtained, such consent not to unreasonably withheld. The lessor shall have the right of first refusal on the demised premises for any sub-letting or assigning of the demised premises of this lease.

7. CHANGE IN PURPOSE:

If the purpose of the Lessee’s business is changed at any time after the date hereof, the Lessee shall give notice of such change to the Lessor. The Lessor may cancel this lease upon Sixty (60) days written notice to the Lessee if the Lessor finds the Lessee’s new business is unacceptable for the location of the premises. The Lessee cannot unreasonably cancel the lease because of a change of business.

8. PROHIBITED USE:

The Lessee will not at any time during the term of this lease, use, exercise or carry on, or permit or suffer to be used, exercised or carried on, in or upon the demised premises, or any part thereof, any noxious, noisome or offensive act, occupation, trade, business or calling. No act, matter or thing whatsoever shall at any time during the term of this lease be done to or on the demised premises, or any part thereof, which shall or may be done to the annoyance, a nuisance, grievance, damage, or to the disturbance of other Lessees of the Lessor or the occupier or owners of any adjoining premises, which may conflict with the laws relating to fires, or the regulations of the Board of Health or with any Statute or Municipal By-law. It is agreed by the Lessor that the present business carried on by the Lessee is not in contravention or in violation of this paragraph.

9. ALTERATIONS:

The lessee will not during the said term make or suffer any alterations, decorations or additions to be made to the demised premises without first receiving the written permission of the Lessor, which will not be unreasonably withheld. All alterations, decorations or additions which may be made by the Lessee pursuant to such written permission of the Lessor shall be made at the sole expense of the fixtures of the premises shall become the property of the Lessor. The Lessee may remove any equipment, or chattels installed by it on the termination of the lease.

10. LESSEE’S LIABILITY INSURANCE:

The lessee will save, defend, hold harmless and indemnify the Lessor against any and all suits, claims, actions or damages which may be made against the Lessor with respect to or arising out of the use and occupation by the Lessee of the demised carry an Operational Liability Insurance policy in the name of both the Lessee and the Lessor and shall pay the premiums for such insurance and deposit certificates with respect to such insurance with the lessor. If the Lessee fails to insure and keep insured as herein provided, the Lessor shall be free to effect such insurance at the cost and expense of the Lessee and the sum so expended by the Lessor cost and expense of the Lessee and the sum so expended by the Lessor shall be added to the rent due on the next succeeding payment date and such payment in addition to the regular payment shall then constitute rent hereunder.

11. CLEANLINESS:

The Lessee will keep the sidewalk in front of the demised premises clear and free from ice and snow accumulations and will conform with and observe the requirements of the ordinances and by-laws of the City of Calgary or other municipal or governmental authority in respect to the demised premised. The Lessee will, at its sole cost and expense, keep the demised premised free and clear of debris, refuse or garbage and will ensure that the premises remain in a clean condition.

12. LESSOR’S RULES:

The Lessee shall abide by all rules and regulations promulgated by the Lessor for the benefit and welfare of the tenants of Building           .  Provided that such rules and regulations are reasonable and consistent with the terms of this lease.

13. DEFECTS IN UTILITIES:

The Lessee shall give to the Lessor prompt notice of any accident or other defect in the water pipes, gas pipes, heating apparatus or telephone, electric light or other wires.

14. PLUMBING AND HEATING:

The Lessee will at all times heat the demised premises, protect all pipes and plumbing against frost and freezing, and, in the event of any damage thereto, will immediately contact the necessary service people in order that the repairs may be made. The list of the service people used by the Lessor shall be furnished to the Lessee by the Lessor.

15. FIRE INSURANCE:

The Lessor will insure Building          against fire and supplemental perils.

16. DAMAGE TO PREMISES:

If, during the term of this lease, the demised premises shall be damaged by fire, lightning, tempest, impact of aircraft, acts of war, acts of God, riots, insurrections or explosions, the following provisions shall take effect:

(a) If the demised premises are rendered partially unfit for occupancy by the Lessee, the rent payable shall be only for the part of the premises that are usable and therefore shall be reduced in proportion to the normal rent if the whole premises were usable.

(b) If the demised premises are rendered wholly unfit for occupancy by the Lessee, the rent will not be payable until the premises have been repaired or restored.

(c) Notwithstanding the provisions of Clause 16 (a) and (b) of this lease, if the premises are in the opinion of the Lessor incapable of being repaired with reasonable diligence within Ninety (90) days of the damage occurrence, then the term of this lease shall be concluded and the Lessee shall immediately surrender the premises and all its interest to the Lessor, such rent to be a portion and payable only to the date of the damage occurrence. The Lessor may re-enter and repossess the premises upon discharge of the lease. The Lessor must give the Lessee a Notice in writing within Thirty (30) days after the sate of damage or destruction as to whether the premises are repairable within Ninety (90) days.

17. EARLY TERMINATION:

If the term granted by this lease or any of the goods and chattel of the Lessee shall at any time be seized or taken in execution or in attachment by ant creditor of the Lessee; or if a Writ of Execution shall issue against the goods or chattels of the Lessee and remain unsatisfied for a period of fourteen clear days from the date of issue; or if the Lessee shall make any assignment for the benefit of creditors, or become bankrupt or insolvent or if the Lessee shall attempt to sell or dispose of goods and chattels located on the demised premises so that there would not, in the event of such sale or disposal, be, in the opinion of the Lessor, a sufficient distress on the demised premises for the then accruing rent; then and in every such case the current months rent, together with rent for the next three succeeding months, shall immediately become due and payable and the term of this lease shall, at the option of the Lessor, forthwith become forfeited and determined, without prejudice to any claim or claims which the Lessor may have under this lease.

18. LESSEE’S DEFAULT

If the rent hereby reserved or any part thereof be in default for a period of thirty (30) days, or if the Lessee fails to remedy any other breach of one or more of the terms of this lease after the receipt of thirteen (13) days notice in writing by the Lessor calling breach to the attention of the Lessee and requesting lawful for the Lessor to re-enter into and upon the demised premises lease and thereupon the term of this lease shall be forfeited and absolutely cease and determine.

19 OVER HOLDING:

In the event of the Lessee remaining in the occupation of the demised premises after the expiration of the term of this lease and paying rent to the Lessor, and the Lessor accepting such rent, such holding over and payment between the parties hereto, constitute the Lessee a tenant for years of the Lessor. Such holding over and payment shall be taken to constitute the Lessee a tenant from month to month under the terms and conditions of the lease.

20. SIGNS AND ADVERTISING:

The Lessee may, with the consent in writing of the Lessor first had and obtained, which consent will not be unreasonably withheld, put, place and maintain on the outside of the demised premises such business signs, illuminated or otherwise, as the Lessee may in the course of its business require. The Lessee agrees that it will, prior to the putting or placing of any such signs, in addition to obtaining the consent of the Lessor thereto, obtain any permits or licences required and comply with all other lawful requirements that may be necessary in respect of such signs, upon the termination of this lease, and it will return the demised premises to the condition that they were in prior to the installation of such signs and that it will indemnify and save harmless the Lessor from any and all claims for damages which might result to any and all claims for damages which might result to any person or property as a result of the existence of such signs or any of them.

21. LESSEE’S REPAIRS:

The Lessee shall be responsible for all maintenance of the demised premises and for the repair, if required, of the heating, plumbing and electrical systems, normal wear and tear excepted, and acknowledges that such systems have been inspected and are in good condition. The doors and windows of the demised premises shall be kept whole and whenever any part thereof shall become broken, it shall immediately be replaced or repaired to the satisfaction of the Lessor and shall be paid for the Lessee.

22. LESSOR’S REPAIRS:

The Lessor, at its own expense, shall be responsible for all structural repairs to Building         , including the exterior walls, roof and foundation. However, the cost of any such repairs necessitated by neglect or misuse of the demised premises by the Lessee shall be borne by the Lessee.

23. CONDITION OF PREMISES AT END:

At the end of the term of this lease or any extension thereof or sooner termination of the term, the Lessee will leave the demised premises in good repair, reasonable wear and tear and damage by fire, lightning and tempest only excepted.

24. INSPECTION:

The Lessor may enter upon the demised premises only during business hours and view the state of repair thereof, and may serve upon the Lessee by registered mail a notice in writing of any defect requiring it within the time to be therein mentioned, to repair the same, and the Lessee will repair the demised premises in so far as it is bound to do so according to such notice, and the terms of this lease.

25. QUIET POSSESSION:

The Lessee paying the rent hereby reserved and performing the covenants hereinbefore on its part contained, shall and may peaceably have access to, possess and enjoy the said demised premises for the term herby granted, without any interruption or disturbance from the Lessor, or any other person or persons lawfully claiming by, from the Lessor, or any other person or persons lawfully claiming by, from or under the said Lessor.

26. NOTICES:

All notices required to be given pursuant to this lease may be given by hand or sent by registered mail to the Lessor at:

Name of Lessor: _______________________                                   

Address:     _______________________  

_______________________                                                

_______________________                                                

                                                

and to the Lessee at:

Name of Lessee: _______________________                                    

Address:     _______________________   

_______________________   

_______________________   

                                                 

and shall be deemed to have been received Five (5) clear business days after posting.  Either party may change its address for notice hereunder by notice in writing mailed or delivered to the other party.

27. NET LEASE:

It is the intention of the parties hereto that this shall be a net lease and that the rent to be paid to the Lessor herein shall be absolutely net to the Lessor and that all costs, expenses and obligations of every kind and nature whatsoever relating to the demised premises, structural repairs excepted, shall be paid by the Lessee.

28. RENEWAL:

If the Lessee is not in default of any of the terms of conditions contained in this lease, the Lessor grants the Lessee the right to re-let for a term of          years, the demised premises at a agreed upon all other terms and conditions as herein set out, excepting only this right to re-let Ninety (90) days prior to the termination of this lease; that is to say on or before the first day of             19   .

IN WITNESS WHEREOF the corporate seals of the Lessor and Lessee have been hereunto attached and attested by the hands of their proper officers in that behalf all on the day and the year first above written.

PER;  ______________________________                                                                

PER:  ______________________________       

                                          PER;  ______________________________     

                                          PER:  ______________________________                                                                  

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