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Business Lease Agreement
AGREEMENT made this _________ [day] of ________ [month], 20___, between [name] of [address] hereinafter referred to as Lessor, and [name] of [address] hereinafter referred to as Lessee.
Agreement is as follows:
01. Lessor agrees to lease to Lessee the business owned by Lessor _____________________________ [registered business name] including all of the equipment as clearly defined in the annexure to this Agreement marked Schedule A.
02. Lessee agrees to lease the business owned by Lessor _____________________________ [registered business name] from Lessor under the following terms and conditions:
03. Lessee acknowledges ownership of the business belonging to Lessor including all equipment listed in Schedule A.
04. Term of Agreement. The term of this Business Lease Agreement is for [number] years [months] commencing on [date] and terminating on [date].
05. Extension of Term of Agreement. The term of this Business Lease Agreement may be extended for an additional term of [number] years [months] starting with the date of [date] and ending on [date], provided Lessee notifies Lessor of Lessee's plan to extend the Lease term. This will be in the form of written confirmation by United States Postal Service registered or certified mail, and posted no later than [number] months before the initial term expires.
06. Payment. Lessee will pay Lessor the [monthly/annual] dollar amount of [amount] for the lease of the business including the Equipment set-out in Schedule A. This is inclusive of any increases in the annual/monthly rental during the extended term of this Lease, which rental is outlined in the annexure to this Agreement marked Schedule B. The amount is to be paid in monthly installments of ........ dollars ($........) each during the first year of the term, of ........ dollars ($........) thereafter until the term ends. The first monthly payment is due on [date], and payments are due thereafter on the [number] day of each month.
07. Care & Operation Of Equipment. The equipment may only be used and operated in a careful and proper manner. Its use must comply with all laws, ordinances, and regulations relating to the possession, use, rebets, or maintenance of the equipment, including registration and/or licensing requirements, if any.
08. Maintenance & Repair Of Equipment. Lessee shall maintain the equipment in good repair and operating condition, allowing for reasonable wear and tear.
09. Return Of Equipment. At cessation of the term of the Agreement, Lessee will hand over the business to Lessor, including the return of the equipment to the Lessor at the Lessee's expense.
10. Acceptance Of Equipment. Lessee shall inspect each item of equipment delivered pursuant to this Agreement. Lessee shall immediately notify Lessor of any discrepancies between such item of equipment and the description of the equipment listed in Schedule A. If Lessee fails to provide such notice before accepting delivery of the equipment, Lessee will be conclusively presumed to have accepted the equipment as specified in the Equipment Schedule.
11. Ownership & Status Of Equipment. The equipment will be deemed to be personal property, regardless of the manner in which it may be attached to any other property. Lessor shall be deemed to have retained title to the equipment at all times, unless Lessor transfers the title by sale. Lessee shall immediately advise the Lessor regarding any notice of any claim, levy, lien, or legal process issued against the equipment.
12. Indemnity Of Lessor For Loss Of Damages. If the equipment is damaged or lost, Lessor shall have the option of requiring Lessee to repair the equipment to a state of good working order, or replace the equipment with like equipment in good repair, which equipment shall become the property of the Lessor and subject to this Lease.
13. Liability & Indemnity. Liability for injury, disability, and death of workers and other persons caused by operating, handling, or transporting the equipment during the term of this Agreement is the obligation of Lessee, and Lessee shall indemnify and hold Lessor harmless from and against all such liability.
14. Casualty Insurance. The Lessee shall insure the equipment in the amount of [state agreed dollar amount].
15. Lessee to Hold Lessor Harmless From Damages and Claims Arising Out of Use of Equipment. Lessee will indemnify Lessor and hold Lessor harmless against any losses, damages, claims, or expenses arising out of Lessee's use and operation of the Equipment or out of defects in the Equipment. This provision will survive the termination of this Lease, regardless of the reason for termination.
16. Taxes, Assessments, Etc., on Equipment. Lessee will pay all taxes, fees, or assessments levied on or based upon rental payments, this Lease, or the Equipment except for sales taxes on the original purchase of the Equipment by Lessor and Lessor's franchise and income taxes.
17. Limitation on Lessee's Right to Assign, Lease, or Sublet Equipment. Lessee may not assign this Lease or sublet any of the Equipment without Lessor's consent in writing and upon such terms as Lessor shall require.
18. Notices. Any notice to be given or to be served upon any party hereto must be in writing and may be given by certified or registered mail, but shall be deemed to have been given and received when a certified or registered letter containing such notice, properly addressed with postage prepaid, is deposited with the United States Postal Service. If notice is given in some manner other than by certified or registered mail, it shall be deemed to have been given when delivered to and received by the party to whom it is addressed, Such notices shall be given to the parties hereto at the following addresses:
If to the Lessor:
[city, state, zip]
If to the Lessee:
[city, state, zip]
Any party hereto may change its address for purposes of this paragraph by written notice given in the manner provided above.
19. Events Constituting Lessee's Default. The occurrence of any of the following events shall constitute a default of Lessee under this Lease:
(a) Failure to Pay Rent. Lessee's failure to pay any monthly installment of rent within [number] days after the installment becomes due;
(b) Failure to Perform Other Obligations Under Lease. Lessee's failure to perform one or more of Lessee's other obligations under this Lease within [number] days after Lessor notifies Lessee that Lessee is in default; or
(c) Insolvency or Bankruptcy. The filing of a petition of bankruptcy by or against Lessee; the appointment of a receiver or trustee for all or part of Lessee's property; the making of an assignment for the benefit of Lessee's creditors.
20. Arbitration. Any disputes pertaining to this contractual arrangement being affairs that cannot be settled amicably shall be submitted to an arbitrator under the Rules of the American Arbitration Association in the City of [city], whose award may be reduced to judgment in any court of competent jurisdiction.
21. Captions. The captions in this Lease are included for convenience only and shall not be taken into consideration in any construction or interpretation of this Agreement or any of its provisions.
22. Amendment. This Agreement may be modified or amended, if the amendment is made in writing and is signed by both parties.
23. Severability. If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid or enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.
24. Waiver Of Contractual Right. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.
25. No Representations. Neither party has made any representations nor promises, other than those contained in this agreement or in some further writing signed by the party making the representation or promise.
26. Interpretation. This Agreement will in all events be construed as a whole, according to its fair meaning, and not strictly for or against a party merely because that party (or the party's legal counsel) drafted the Agreement. The headings, captions, and titles in this legal Agreement are merely for reference and do not define, limit, extend, or describe the scope of this Agreement or any provision herein. Unless the context requires otherwise, (a) the gender (or lack of gender) of all words used in this Agreement includes the masculine, feminine, and neuter, and (b) the word including means including without limitation.
27. Advice Of Legal Counsel. Each individual party to this Agreement represents and warrants to each other party that such party has read and fully understands the terms and provisions hereof, has had an opportunity to review this Agreement with legal counsel, and has executed this Agreement based upon such party's own judgment and advice of independent legal counsel.
28. Invalid Provisions. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any present or future law, then that provision will be fully severable. This Agreement will be construed and enforced as if the illegal, invalid, or unenforceable provision had never comprised a part of this Agreement, and the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of each such illegal, invalid, or unenforceable provision, there will be added automatically, as a part of this Agreement, a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid and enforceable.
29. Further Assurances. In connection with this Agreement and the transactions contemplated hereby, each party to this Agreement will execute and deliver any additional documents and perform any additional acts that may be necessary or appropriate to effectuate and perform its obligations under this Agreement and the transactions contemplated hereby.
30. Entire Agreement. This Business Lease Agreement contains the entire agreement of the parties and there are no other promises or conditions in any other agreement whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties.
31. Applicable Law. This Agreement shall be governed by the laws of the State of [State].
IN WITNESS WHEREOF, the parties have signed this Lease on the date set forth above.
[Full Name/Address of Witness]