Commercial Gross Lease Agreement Form

If a landlord wants to create a fixed-price lease agreement with a tenant, the following form has to be used in order to create such legal agreement.

Extracted Text for Proper Search

COMMERCIAL LEASE 	
1. PARTIES: This Lease dated __________ is made by and between ____________________ (herein
called "Landlord") and __________________ (herein called "Tenant").
2. PREMISES: 2.1 Premises.  Landlord hereby leases to Tenant and Tenant hereby leases from Landlordfor the term, at the rental, and upon all of the conditions set forth herein, that certain
portion of the Office Building Complex located on ______________ in particularly
shown and identified on Exhibit "A" attached hereto and made a part hereof.
3. TERM: 3.1 Term.  The term of this Lease shall be ________years, commencing on__________and ending on __________, unless sooner terminated pursuant to any provision
hereof.
3.2 Early Possession;  In the event that Landlord shall permit Tenant to occupy the Premises prior to the commencement date of the term, such occupancy shall be
subject to all of the provisions of this Lease.  Said early possession shall not advance
the termination date of this Lease.
3.3 Renewals.  Tenant may renew the Lease for one extended term of _______ months. Tenant shall exercise such renewal option by giving written notice to Landlord not
less than 90 days prior to the expiration of the initial term.  The renewal term shall

be at the rental rate set forth in Exhibit "A" and otherwise upon the same covenants,
conditions and provisions as provided in this Lease.
4. RENT: 4.1 Base Rent.  The net monthly base rent shall be_______________________
*paid monthly with the first payment payable on the commencement of the Lease
and each monthly installment payable thereafter on the first day of each month.  Said
net monthly base rent is-hereafter referred to as the "base rent".  Rent for any period
during the term hereon, which is for less than one month shall be a pro-rata portion
of the monthly rent.* Plus Escalations (See exhibit "A")
4.2   Additional Char ges.   This  Lease  is what is commonly  called a  gr
it being  understood that  Landlord shall receive  the rent set forth in Article 4.1
without offset or deduction, (except as otherwise provided) and free and clear of any
and all impositions, real estate taxes, liens, charges or expenses of any nature
whatsoever in connection with the ownership and operation of the Premise\
s.
5. SECURITY DEPOSIT: 5.1 A security deposit of $____________ has been made.  If Tenant fails to pay
rent or other charges due hereunder, or otherwise defaults with respect to any
provision of this Lease, Landlord may use, apply or retain all or any portion of this
deposit to remedy such default.  Tenant shall restore the deposit to the full original
amount within 10 days after written demand.  Landlord will not be liable for
payment of interest on this security deposit.

6. USE:
6.1 Use.  The Premises shall be used and occupied for the purpose of
________________________________________________________ as long as such
operation is not in violation of existing legal regulations or statutes.  Tenant agrees
to comply with the Office Building Complex and parking Rules as set forth in
Exhibit B.
6.2 Compliance with Law.  Except as otherwise provided in Article 6.1 hereof, Tenant
shall, at Tenant's expense, comply promptly with all applicable statutes, ordinances,
rules, regulations, orders and requirements in effect during the term or any part of the
term hereof regulating the use by Tenant of the Premises.  Tenant shall not use or
permit the use of the Premises in any manner that will tend to create waste.
6.3 Condition of Premises.  Landlord shall deliver the Premises to Tenant in a clean
condition on the commencement date (unless Tenant is already in possession) and
Landlord warrants to Tenant that the plumbing, lighting, air conditioning and heating
system in the Premises is in good working order.
Tenant hereby accepts the Premises in its present condition as of the commencement
date (or the date Tenant takes possession, which ever comes first) subject to all
applicable zoning, municipal, county and state laws, regulations and ordinances
governing and regulating the use of the Premises, and any easements, covenants or
restrictions of record and accepts this Lease subject thereto.  Tenant acknowledges
that it has satisfied itself that the Premises is suitable for its intended use and that
Landlord has not made any representation or warranty as to the present or future
suitability of the Premises.

7. MAINTENANCE, REPAIRS AND ALTERATIONS:
7.1 Tenant's Obligations.  Except with respect to Landlord's obligations as set forth in
this Agreement, Tenant shall, during the term of this Lease, keep in good order,
condition and repair, the Premises and every part thereof, structural or non-structural,
(including graffiti removal), and all adjacent sidewalks, landscaping, driveways,
parking lots, fences and signs located in the areas which are adjacent to and included
with the Premises. 
7.2 Landlord's Obligations.  Landlord shall keep the Premises in good condition and
repair, provided however, that the Landlord shall not be obligated to paint, repair or
replace wall coverings, or to repair or replace any improvements that are not
ordinarily a part of the Premises.  Except as otherwise provided, there shall be no
abatement of rent or liability of Tenant on account of any personal injury or
interference with Tenant's business with respect to any improvements, alterations or
repairs made by Landlord to Premises or any part thereof.  Tenant expressly waives
the benefits of any statute now or hereafter in effect which would otherwise afford
Tenant the right to make repairs at Landlord's expense or to terminate this Lease
because of Landlord's failure to keep the Premises in good order, condition and
repair.
7.3 Alterations.  Tenant shall make no alterations to the Premises without Landlord's
written consent.  Any alterations made shall remain on and be surrendered with the
Premises on expiration or termination of the term, except, that Landlord can elect
within thirty (30) days before expiration of the term, or within ten (10) days after
termination of the term, to require Tenant to remove any alterations that Tenant has

made to the Premises.  If Landlord so elects, Tenant at its expense, shall restore
Premises to the condition designated by the Landlord in its election, before the last
day of the term, or within thirty (30) days after notice of election is given, whichever
is later.
8. UTILITIES:
8.1 Services Provided by Landlord.  Landlord shall provide heating, ventilation, air
conditioning and janitorial services as reasonably required, reasonably amounts of
electricity for normal lighting and office machines, water for reasonable and normal
drinking and lavatory use, and replacement light bulbs and /or fluorescent tubes and
ballasts for standard overhead fixtures.  Such services and utilities shall be provided
during generally accepted business days and hours or such days or hours as may
hereafter be set forth.
8.2 Excess usage by Tenant.  Tenant shall connect to the aforementioned utilities
through existing outlets and will not use machinery and equipment in or about the
Premises that uses excess water or electricity.
8.3 Interruptions.  There shall be no abatement of rent and Landlord shall not be liable
in any respect whatsoever for the inadequacy, stoppage, interruption, or
discontinuance of any utility or service due to riot, strike, labor dispute, breakdown,
accident, repair or other cause beyond Landlord's reasonable control.
9. SURRENDER:
9.1 Surrender.  On the last day of term hereof, or on any sooner termination, Tenant shall
surrender the Premises to Landlord in good condition, broom clean, ordinary wear

and tear, damage by fire, acts of God or any other cause within the scope of the fire
and extended coverage insurance contemplated hereunder is excepted.  All structural
alterations, improvements or additions which may be made on the Premises, shall
become the property of Landlord and remain upon and be surrendered with the
Premises at expiration of the term.  Tenant's machinery, equipment and other trade
fixtures other than that which is affixed to the Premises so that it cannot be removed
without permanent damage to the Premises, shall remain the property of Tenant and
may be removed by Tenant.
10. INSURANCE:
10.1 Liability.  Tenant shall obtain and keep in force during the term of this Lease a
policy of comprehensive public liability insurance insuring the Landlord and Tenant
against any liability arising out of the ownership, use, occupancy or maintenance of
the Premises and all areas appurtenant thereto.  Such insurance shall be in the
amount of not less than $1,000,000 per occurrence of bodily injury and property
damage combined.  Landlord shall be an additional named insured on said insurance
policy or policies and said policy or policies shall provide that same cannot be
canceled unless Landlord is given thirty (30) days written notice of such
cancellation.
10.2 Other Coverage.  Landlord shall maintain fire and extended coverage insurance on
the Office Building Complex and the Premises in such amounts as Landlord shall
deem appropriate.  Tenant shall be responsible, at its expense, for fire and extended
coverage insurance on all its personal property, including removable trade fixtures,
located in the Premises.

10.3 Waiver of Subrogation.  Tenant and Landlord each waives any and all rights of
recovery against the other, or against the officers, employees, agents and
representatives of the other, for loss or damage to such waiving party or its property
or the property of others under its control, where such loss or damage is insured
against under any insurance policy in force at the time of such loss or damage.
Tenant and Landlord shall, upon obtaining the certificates or insurance required
hereunder, give notice to the insurance carriers that the foregoing mutual waiver of
subrogation is contained in this Lease.
10.4 Hold Harmless.  Tenant shall indemnify, defend and hold harmless Landlord from
all and any claims arising from use of the Premises by Tenant or any sub-lessee,
assignee or permissive user of the Premises, or from the conduct of business or from
any activity, work or things which may be permitted or suffered by Tenant in or
about the Premises, and shall further indemnify, defend and hold Landlord harmless
from and against any and all claims arising from any breach or default in the
performance of any obligation on Tenant's part to be performed under the provisions
of this Lease, including the obligation to obtain and maintain liability and fire
insurance, or arising from any negligence of Tenant, its agents, contractors,
employees, sub-lessees, assignees, or invitees, and from any and all costs, reasonable
attorney's fees, expenses and liabilities incurred in the defense of any such claim or
any action or proceeding brought thereon.  Tenant hereby assumes all risk of damage
to property or entry to person in or about the Premises from any cause, and Tenant
hereby waives all claims in respect thereof against Landlord, excepting where said
damage arises out of the active negligence of Landlord.

10.5 Exemption of Landlord from Liability.  Tenant hereby agrees that Landlord shall not
be liable for injury to Tenant's business or any loss of income therefrom or from
damage to the goods, wares, merchandise or other property of Tenant, Tenant's
employees, invitees, customers, or any other person in or about the Premises from
any and all causes except the active negligence of Landlord.
11. DAMAGE OR DESTRUCTION:
11.1 Damage to Premises.  In the event the improvements on the Premises are damaged
or destroyed, partially or totally, from any cause covered by an insurance required
to be maintained under Article 10, the Landlord shall repair, restore, and rebuild the
Premises to their condition existing immediately prior to such damage or destruction.
Such repair, restoration and rebuilding shall be commenced within a reasonable time
after such damage or destruction. 
11.2 Abatement of Rent.  In the event the repairs made by the Landlord to the Premises
pursuant to this Article cause the Premises to be unusable for the intended purpose,
the rent payable hereunder for the period during which such repair continues to take
place shall be abated - provided that the damage to the Premises was not the result
of the negligence of the Tenant.
12 PROPERTY TAXES:
12.1 Personal Property Taxes.  Tenant shall pay prior to delinquency all taxes assessed
against and levied upon leasehold improvements, trade fixtures, furnishings,
equipment and other personal property of Tenant contained in the Premises.

13. LATE CHARGES:
13.1 Late charges.  If any installment due under this Lease is not received by Landlord
within ten (10) days after the due date, Tenant agrees to pay Landlord a late charge
equal to __________% of such overdue amount.  Acceptance of such late charge
shall in no event constitute a waiver of Tenant's default with respect to such overdue
amount nor will it prevent the Landlord from exercising any other rights and
remedies contained in this Lease.
14. ASSIGNMENT OF INTEREST:
14.1 Assignment of Interest.  Tenant shall not voluntarily assign or encumber its interest
in this Lease or in the Premises, or allow any person or entity (except Tenant's
authorized representatives) to occupy or use all or any part of the Premises, without
first obtaining Landlord's written consent.  Any assignment or encumbrance without
Landlord's consent shall be voidable and, at Landlord's election, shall constitute a
further waiver of the provisions of this paragraph.
15 DEFAULT:  REMEDIES:
15.1 Defaults.  The occurrence of any one or more of the following events shall constitute
a default and breach of this Lease by Tenant:
a) Abandonment of the Premises by Tenant.
b) The failure by Tenant to make any payment of rent or any other payment required
to be made by Tenant hereunder, as and when due, where such failure shall
continue for a period of thirty (30) days after written notice thereof from
Landlord to Tenant.

c) The failure by Tenant to observe or perform any of the covenants, conditions or
provisions of this Lease to be observed or performed by Tenant, other than
descried in paragraph (b) above, where such failure shall continue for a period
of thirty (30) days after written notice thereof from Landlord to Tenant;
provided, however, that if the nature of Tenant's default is such that more than
thirty (30) days are reasonably required for its cure, then Tenant shall not be
deemed to be in default if Tenant commenced such cure within said thirty (30)
day period and thereafter diligently prosecutes such cure to completion.
d) The making by Tenant of any general assignment or general arrangement for
benefit of creditors; the filing by or against Tenant of a petition to have Tenant
adjudged a bankrupt or a petition for reorganization or arrangement under any
law relating to bankruptcy (unless in the case of a petition filed against Tenant,
the same is dismissed within sixty (60) days); the appointment of a trustee or
receiver to take possession of substantially all of the Tenant's assets located at
the Premises or of Tenant's interest in this Lease, where possession is not
restored to Tenant within thirty  (30) days; or the attachment, execution or other
judicial seizure of substantially all of Tenant's assets located at the Premises or
of Tenant's interest in this Lease, where such seizure is not discharged within
thirty (30) days.
15.2 Remedies in Default.  In the event of any such default or breach by Tenant, Landlord
may at any time thereafter, with or without notice or demand and without limiting
Landlord in the exercise of any right or remedy which Landlord may have by reason
of such default or breach:

a) Terminate Tenant's right to possession of the Premises by any lawful means, in
which case this Lease shall terminate and Tenant shall immediately surrender
possession of the Premises to Landlord.  In such event Landlord shall be entitled
to recover from Tenant all damages incurred by Landlord by reason of Tenant's
default including, but not limited to, the cost of recovering possession of the
Premises; expenses of reletting, including necessary renovation and alteration
of the Premises, reasonable attorney's fees, and any real estate commission paid;
the worth at the time of award by the court having jurisdiction thereof of the
amount by which the unpaid rent for the balance of the term after the time of
such award exceeds the amount of such rental loss for the same period that
Tenant proves could be reasonably avoided; and that portion of the leasing
commission paid by Landlord applicable to the unexpired term of this Lease.
Unpaid installments of rent or other sums bear interest from the date due at the
rate of ten percent (10%) per annum.  In the event Tenant shall have abandoned
the Premises, Landlord shall have the option of (i) retaking possession of the
Premises and recovering from Tenant the amount specified in this Article
15.2(a), or proceeding under Article 15.2 (b).
b) Maintain Tenant's right to possession, in which case this Lease shall continue in
effect whether or not Tenant shall have abandoned the Premises.  In such event,
Landlord shall be entitled to enforce all of Landlord's rights and remedies under
this Lease, including the right to recover the rent as it becomes due hereunder.
c) Pursue and other remedy now or hereafter available to Landlord under the laws
or judicial decisions of the state of which the Premises are located.

d) Landlord, at any time after tenant commits a default, may cure the default at
Tenant's cost.  If Landlord at any time, by reason of Tenant's default, pays any
sum or does any act that requires the payment of any sum, the sum paid by
Landlord shall be due immediately from Tenant to Landlord at the time the sum
is paid.  The sum, together with interest hereon, shall be additional rent.  All
rent, including sums paid by Landlord pursuant to this Article 15.2 (d) shall bear
interest at the rate of ten percent (10%) per annum from the date the sum is due
until Landlord is reimbursed by Tenant.
16. CONDEMNATION:
16.1 Condemnation.  If the Office Building Complex, Premises or any portion thereof are
taken under the power of eminent domain, or sold by Landlord under the threat of
the exercise of said power (all of which is herein referred to as "condemnation"), this
Lease shall terminate as to the part so taken as of the date of the condemning
authority takes title or possession, whichever occurs first.  All awards for the taking
of any part of the Premises or any payment made under the threat of the exercises of
power of eminent domain shall be the property of Landlord, whether made as
compensation for diminution of value of the leasehold or for the taking of the fee, or
as severance damages; provided, however, that Tenant shall be entitled to any award
for loss of damage to Tenant's trade fixtures and removable personal property.

17. GENERAL PROVISIONS:
17.1 Landlord's Interests.  The term "Landlord" as use herein shall mean only the owner
or owners at the time in question of the fee title or a tenant's interest in a ground
Lease of the Premises.  In the event of any transfer of such title or interest, Landlord
herein named (and in case of any subsequent transfers the then grantor) shall be
relieved from and after the date of such transfer of all liability as respects Landlord's
obligations thereafter to be performed, provided that any funds in the hands of
Landlord or then grantor at the time of such transfer, in which Tenant has an interest,
shall be delivered to the grantee.  The obligation contained in this Lease to be
performed by Landlord shall, subject as aforesaid, be binding on Landlord's
successors and assigns, only during their respective period of ownership.
17.2 Severability.  The invalidity of any provision of this Lease, as determined by a court
of competent jurisdiction shall in no way affect the validity of any other provision
hereof.
17.3 Time of Essence.  Time is of essence.
17.4 Incorporation of Prior Agreement; Amendments.  This Lease contains all agreements
of the parties with respect to any matter mentioned herein.  No prior agreement or
understanding pertaining to any such matter shall be effective.  This Lease may be
modified in writing only, signed by the parties in interest at the time of the
modification.
17.5 Holding Over.  If Tenant remains in possession of the premises or any part thereof
after the expiration of the term hereof with the express written consent of Landlord,
such occupancy shall be a tenancy from month to month at a rental in the amount

_________% of the last monthly rental plus all other charges payable hereunder, and
upon the terms hereof applicable to month-to-month tenancy.
17.6 Cumulative Remedies.  No remedy or election hereunder shall be deemed exclusive,
but shall wherever possible, be cumulative with all other remedies at law or in
equity.
17.7 Covenants and Conditions.  Each provision of this Lease performable by Tenant
shall be deemed both a covenant and a condition.
17.8 Binding Effect.  This Lease shall bind the parties, their personal representative,
successors and assigns.  This Lease shall be governed by the laws of the state where
the Premises are located. 
17.9 Subordination.  
(a)This Lease, at Landlord's option, shall be subordinate to any ground lease,
mortgage, deed or trust, or any other hypothecation for security now or hereafter
placed upon the real property of which the Premises are a part and to any and
all advances made on the security thereof and to all renewals, modifications,
consolidation, replacements and extensions thereof. Notwithstanding such
subordination, Tenant's right to quiet possession of the Premises shall not be
disturbed if Tenant is not in default and so long as Tenant shall pay the rent and
observe and perform all of the provision of this Lease, unless this Lease is
otherwise terminated pursuant to its term.  If any mortgagee, trustee or ground
lessor shall elect to have this Lease prior to the lien to its mortgage, deed of trust
or ground lease, and shall give written notice thereof to Tenant, this Lease shall

be deemed prior to such mortgage, deed of trust, or ground lease, whether his
lease is dated prior or subsequent to the date of said mortgage, deed of trust or
ground lease or the date of recording thereof.
(b) Tenant agrees to execute any documents required to effectuate such
subordination or to make this Lease prior to the lien of any mortgage, deed to
trust or ground lease, as the case may be.
17.10 Attorney's Fees.  If either party named herein brings an action to enforce the terms
hereof or declare rights hereunder, the prevailing party in any such action, on trial
or appeal, shall be entitled to his reasonable attorney's fees to be paid by the losing
party as fixed by the court.
17.11 Landlord's Access.  Landlord and Landlord's Agents shall have the right to enter the
Premises at reasonable times for the purpose of inspecting the same, showing the
same to prospective purchasers, or lenders, and making such alterations, repairs,
improvements or additions to the Premises or to the Office Building Complex of
which they are a part as Landlord may deem necessary or desirable. Landlord may,
at any time during the term of the Lease place any ordinary "for sale" sign, and
during the last one hundred twenty (120) days of the term of the Lease place any
ordinary "for lease" sign on or about the Premises, all without rebate of rent or
liability to Tenant. 
18. NOTICES:
Whenever under this Lease provision is made for demand, notice or declaration of any kind,
or where it is deemed desirable or necessary by either party to give or serve such notice,
demand or declaration to the other party, it shall be in writing and served either personally

or sent by United States Mail, postage prepaid, addressed at the addresses set forth herein
below:
To Landlord at: ________________________________
________________________________
________________________________
To Tenant at: _________________________________
_________________________________
_________________________________

The parties hereto have executed this Lease at the place and on the date specified immediately
adjacent to their respective signatures.
2.Landlord:
3.Executed at_________________________,
on___________________________________ ______________________________
Name 
______________________________
Title
Tenant:
Executed at ________________________, California
on_________________________________ ______________________________
Name 
______________________________
 Title

EXHIBIT A	
Description of Premises	
Address
Square Feet
Floor Plan (See attached)
Renewal Rental Rate	
Lease Period	Rent Amount	
Rental Escalations
Escalations based on Consumer Price Index
(See attached)
Escalations based on fixed amount:
Lease Period	
Rent Amount