Commercial Lease / Lease for Office Premises

LEASE DEED

This lease deed ("Deed") is made at ________, ________ on ________ by and between:

________ residing at ________ (hereinafter referred to as "Lessor" which expression shall mean and include its legal heirs, administrators and permitted assigns) of the FIRST PART

AND

________ residing at ________ (hereinafter referred to as "Lessee" which expression shall mean and include its legal heirs, administrators and permitted assigns) of the SECOND PART

(Lessor and Lessee are hereinafter individually referred to as 'Party' and collectively as 'Parties')

WHEREAS:

A. The Lessor is the owner and in physical possession of the property located at:

________ (hereinafter called the "Leased Premises") along with the existing fixtures and fittings listed in Annexure 1 to this Deed.

B. Lessee had approached the Lessor for grant of lease in respect of the Leased Premises and the Lessor has agreed to lease out the same to the Lessee.

C. The Lessor and the Lessee are now desirous of executing this Lease Deed to record the terms and conditions governing lease of the Leased Premises as set forth hereinafter.

NOW THEREFORE THIS AGREEMENT WITNESSETH AND IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS UNDER:

1. DEFINITIONS AND INTERPRETATION

In this Deed, unless the context otherwise requires, the following rules of interpretation shall apply:

(a) Words referring to one gender include every other gender.

(b) Words referring to a singular number include the plural, and words referring to a plural include the singular.

(c) Words referring to a person or persons includes companies, firms, corporations, organisations and vice versa.

(d) Headings and titles are included in this Agreement for convenience only and shall not affect the interpretation of this Agreement.

(e) Each Party must, at its own expense, take all reasonable steps and do all that is reasonably necessary to give full effect to this Agreement and the events contemplated by it.

(f) Any obligation on a Party not to do something includes an obligation not to allow that thing to be done.

2. GRANT OF LEASE

The Lessor hereby grants to the Lessee, the right to enter into and use and remain in the Leased Premises along with the existing fixtures and fittings listed in Annexure 1 to this Deed and that the Lessee shall be entitled to peacefully possess, and enjoy possession of the Leased Premises, and the other rights granted herein.

3. PURPOSE

(a) The Lessee shall use the Leased Premises only for the following purpose:

________

(b) The Leased Premises shall be exclusively used by the Lessee. The Leased Premises shall not be used for any purposes other than as specified above. The Lessee shall not use the Leased Premises for any unlawful purposes and shall forthwith notify the Lessor if it becomes aware of any illegal activities being conducted on the Leased Premises. The Lessee will not store or allow to be stored on the Leased Premises any objectionable items prohibited by any law in force during the Lease Period.

4. LEASE RENT

The Lessee has agreed to pay the rent of Rs. ________ (________) in advance on or before 1st (first) day of of each calendar month through:

- account payee cheque

In the event of delay in the payment of rent by the Lessee, interest at the rate of ________ % (________ percent) per month shall be payable on the entire outstanding amount from the due date till the actual date of payment.

It is hereby agreed that if a default is made in payment of rent by the Lessee for: ________ (________) consecutive months the Lessor shall be entitled, in addition to other rights and remedies available to the Lessor under this Deed and applicable laws, at its sole discretion to terminate the lease granted under this Deed and to take possession of the Leased Premises as full and absolute owner thereof without regard to the time elapsed.

Provided however, a notice in writing shall be given by the Lessor to the Lessee of his intention to terminate the lease and to take possession of the Leased Premises. In the event the Lessee pays the arrears of rent within a period of ________ (________) days from issue of the notice by the Lessor, the Lessor shall not be entitled to terminate the lease of the Leased Premises. However, if the arrears of rent are not paid by the Lessee, within a period of ________ (________) days from issue of the notice by the Lessor, the lease shall stand automatically terminated with no further acts required on part of the Lessor.

5. TERM OF THE LEASE

The lease of the Leased Premises shall commence on ________ and shall continue for a period of ________ (________) months ("Lease Period") unless terminated earlier in accordance with the terms hereof. Upon expiry of the Lease Period, the lease shall be renewable on the same terms and conditions provided a request for renewal is made by the Lessee ________ (________) months before expiry of the Lease Period. If no notice of renewal is issued by the Lessee, the lease shall terminate upon expiry of the Lease Period.

6. SUBLEASE, ASSIGNMENT

The Lessee shall be permitted to sublet or assign the lease of the Leased Premises.

7. SECURITY DEPOSIT

The Lessee has paid to the Lessor an amount of Rs. ________ (________) as interest free refundable security deposit. The Lessor acknowledges receipt of the security deposit.

The security deposit shall be refunded without any interest simultaneously with the delivery of possession of the Leased Premises by the Lessee to the Lessor upon expiry of the Lease Period or earlier termination of this Deed in accordance with the terms hereof subject to there being no outstanding dues by the Lessee. The Lessor shall be entitled to adjust any outstanding amounts of rent, interest or other charges due from the Lessee and any amounts spent on repairing damages caused to the Leased Premises by the Lessee against the security deposit prior to refunding the same to the Lessee. In the event the amount of the security deposit is not sufficient to cover the outstanding amounts due to the Lessor, the Lessee shall be liable to pay all such outstanding amounts within a period of 15 (fifteen) days from receipt of a written demand from the Lessor.

In the event the Lessor sells the Leased Premises or assigns all rights under this Lease Deed to a third party ("New Lessor"), the security deposit shall also be transferred to the New Lessor and the Lessor shall thereafter not have any liability towards the return of the security deposit to the Lessee.

8. LOCK IN

The Lessor shall not be entitled to terminate this lease during the period of: ________ from the ________ ("Lock-In Period") for any reason whatsoever.

9. GAS, WATER, ELECTRICITY AND OTHER UTILITIES

The Lessee shall pay common area and maintenance charges to the common area and maintenance service provider of the building, as applicable. At present, the maintenance charges to be paid are: Rs. ________ (________).

In the event of any increase in the maintenance charges as specified above, the same shall be borne by the Lessor.

The Lessee shall pay the electricity, water charges and charges for any other utilities at actuals directly to the authorities concerned. The relevant meter readings as of the date of this Deed are attached as Annexure 2 hereto.

10. TELEPHONE, FAX AND INTERNET

The Lessee shall have the right to apply for, obtain and install telephone, fax, internet and / or cable lines in the Leased Premises in their own name and at their own cost. The Lessee shall remove the telephone, fax, internet and/or cable lines obtained and installed by them, as well as pay all dues on the expiry/termination of the lease.

11. STRUCTURAL ADDITIONS

The Lessee shall not carry out any structural additions, modifications or alterations to the Leased Premises without the prior written consent of the Lessor. If the Lessor approves the additions, modifications or alterations to the Leased Premises in writing, and the Lessee intends to use a contractor to carry out the same, such contractor must also be approved in writing by the Lessor prior to commencement of the work.

The Lessee may install and remove its own fittings and fixtures, provided this is done without causing any damage to the Leased Premises. Any such fixtures and fittings may be required to be removed by the Lessor, at its sole discretion, upon vacation of the Leased Premises by the Lessee.

12. COMPLIANCE WITH RULES

The Lessee shall comply with all applicable laws, rules and regulations of the local government authorities in relation to the Leased Premises. The Lessee shall also comply with the rules and regulations of the building association where the Leased Premises is situated.

13. POSSESSION

Lessee shall be handed over possession of the Leased Premises simultaneously with the execution of this Deed provided an amount equivalent to the security deposit and first month's lease rent has been delivered to the Lessor.

In the event the Lessor is unable to hand over possession of the Leased Premises to the Lessee on the date as specified above, due to any unforeseen circumstances, Lessor shall not be liable for any damages but Lessee will not be liable to pay rent until possession is given.

14. REPAIRS

The Parties agree that day to day repairs such as fuse blow out, replacement of light bulbs/tubes, leakage of water taps, maintenance of the water pump and other minor repairs, etc., shall be carried out by the Lessee at its own cost, and any major repairs, either structural or to the electrical or water connection, plumbing leaks, water seepage shall be attended to by the Lessor. In the event of the Lessor failing to carry out the repairs on receiving notice from the Lessee, the Lessee shall undertake the necessary repairs and the Lessor will be liable to reimburse costs incurred by the Lessee within a period of ________ (________) day.

15. INSPECTION

The Lessor and/or its authorised personnel shall have the right to enter upon and inspect the Leased Premises or any part thereof with prior written notice of ________ at any time during the following hours: ________

Provided, however, in case of an emergency, no prior notice shall be required to be given.

16. TAXES

The Lessor shall be responsible for the payment of property tax and any other municipal taxes pertaining to the Leased Premises during the Lease Period. The Lessee shall reimburse the property and municipal taxes paid by the Lessor upon demand made in this regard by the Lessor. Any other statutory taxes or duties, levied by the Government or governmental departments shall be borne by Lessor.

Goods and services tax payable on the rent shall be borne by Lessor.

The Parties agree that stamp duty on this Deed shall be borne by Lessor.

17. OBLIGATIONS OF LESSEE

(a) The Lessee shall use the Leased Premises along with its fixtures and fittings in a careful and responsible manner and shall handover the premises to the Lessor in the same condition (reasonable wear and tear excepted).

(b) Lessee agrees that it shall not damage the Leased Premises and shall be responsible for any damages sustained to the Leased Premises as a result of any activity on the part of Lessee's invitees, licensees, and/or guests.

(c) Lessee shall comply with all obligations imposed upon lessees by applicable provisions of law and building associations;

(d) Lessee shall use and operate all electrical, plumbing, sanitary, ventilating, air-conditioning and other facilities and appliances, including elevators (as applicable) in a reasonable manner;

(e) Lessee shall not destroy, deface, damage, impair, or remove any part of the Leased Premises or property therein belonging to the Lessor nor permit any person to do so;

(f) Lessee shall conduct himself or herself, and require other persons on the Leased Premises with his or her consent to conduct themselves, in a manner that does not unreasonably disturb the Lessee's neighbours or cause nuisance.

18. OBLIGATIONS OF LESSOR

(a) Lessor shall comply with applicable laws and pay the municipal taxes in respect of the Leased Premises in a timely manner.

(b) Lessor shall ensure that any major repairs which may be required for the Leased Premises shall be carried out in a timely manner.

19. REPRESENTATIONS AND WARRANTIES OF LESSOR

(a) Title to the Leased Premises - The Lessor has a clear and marketable title to the Leased Premises and has a right, power and authority to grant to the Lessee, the lease of the Leased Premises.

(b) Taxes & Outgoings –The Lessor has paid and shall pay all existing and future municipal rates, taxes, levies and similar outgoings in respect of the Leased Premises.

(c) Peaceful Possession: The Lessee, on paying rent and other charges payable as per this Lease Deed regularly and on duly observing the terms and conditions hereof, shall be entitled to quiet and peaceful enjoyment of the Leased Premises during the subsistence of the term hereof, without any obstruction, interruption or disturbance by the Lessor or any person or persons lawfully claiming through or under the Lessor.

Except as specified above, the Lessor makes no representations and warranties including but not limited to any express or implied warranties, with regard to the condition of the Leased Premises and the Lessee is taking the Leased Premises on an as-is-where-is basis.

20. REPRESENTATIONS AND WARRANTIES OF THE LESSEE

The Lessee hereby covenants, warrants and represents with the Lessor as follows:

(a) Lease Rentals - to pay the Rent on the due dates and in the manner specified in this Lease Deed and that to observe and abide by all the terms and conditions as set out in this Lease Deed.

(b) Handover of vacant possession – To handover the vacant possession of the Leased Premises to the Lessor immediately upon expiry of the term of the Lease and/or on earlier termination of this Lease Deed. The Lessee shall be liable to remove all the fittings and fixtures installed by them in the Leased Premises and reinstate the Leased Premises subject to wear and tear.

(c) Good and tenantable condition – To keep the Leased Premises at all times in good and tenantable condition.

21. INSURANCE

The Lessor shall be responsible for insuring the Leased Premises.

22. DEFAULT

A breach of any of the terms of this lease by the Lessee which is not cured within a period of: ________, from receipt of notice from the Lessor shall be considered a default under this Deed. Breaches may include but are not limited to, failure to pay the lease rent, engaging in any unlawful activity, damaging or otherwise destroying Leased Premises or any common areas therein, or violation of any part or sub-part of this Lease.

23. TERMINATION

The Lessor shall also be entitled to terminate the lease without any notice in the event of a default committed by the Lessee which is not cured within a period of: ________, from the date of receipt of a written notice in that regard from the Lessor.

Lessor shall be entitled to terminate this Lease Deed by giving written notice of: ________ to the Lessee of its intention to terminate.

Lessee shall be entitled to terminate this Lease Deed by giving written notice of: ________ to the Lessor of its intention to terminate.

Upon any termination of the Lease for any reason whatsoever, the Lessee shall hand over physical vacant possession of the Schedule Property to the Lessor simultaneous with the Lessor refunding to the Lessee the Security Deposit after adjusting all monies due and payable by the Lessee in terms of this Lease Deed.

24. INDEMNITY

Each Party shall defend, indemnify, and hold harmless the other Party from and against any claim, liability, demand, loss, damage, judgment or other obligation or right of action, which may arise as a result of the breach by such Party of this Lease Deed or any misrepresentation made herein.

25. GOVERNING LAW

This Deed shall be governed by the laws of India.

26. ASSIGNMENT BY LESSOR

The Lessor shall be entitled to sell, assign, convey or transfer in any manner his interest in the Leased Premises or his rights and obligations under this Lease Deed to any third party without the written consent of the Lessee, provided that he ensures that the prospective purchaser/assignee agrees to be bound by the terms of this Lease Deed.

27. AMENDMENT

The terms of this Lease Deed shall not be altered or added to nor shall anything be omitted therefrom except by means of a Supplementary Deed in writing duly signed by both the Parties hereto.

28. DISPUTE RESOLUTION

(a) Except as otherwise specifically provided in this Lease Deed, the following provisions apply if any dispute and difference arise between the Parties, arising out of or in relating to/connection with this Lease Deed (The 'Dispute').

(b) The dispute will be deemed to arise when one Party serves on the other Party a notice stating the nature of the Dispute (a 'Notice of Dispute').

(c) The Parties hereto agree that upon serving a Notice of Dispute, they will use all reasonable efforts to resolving the Dispute between themselves through negotiations.

(d) Subject to the foregoing, the courts in ________ shall have exclusive jurisdiction over any dispute, differences or claims arising out of this Lease Deed.

29. RIGHT TO MORTGAGE

Lessor reserves the right to mortgage or otherwise place a lien on the Leased Premises and Lessee agrees to accept the Leased Premises subject and subordinate to any such mortgage or lien. In the event the Lessor has already mortgaged the Leased Premises, it shall ensure that it obtains the consent of the mortgagor, if required, for the lease of the Leased Premises.

30. SPECIAL CONDITIONS

The Lessee agrees that it shall not without prior written permission of the Lessor carry out the following activities in the Leased Premises:

________

31. NOTICES

Any notice or other information/document required or authorised by this Deed to be given shall be given in writing, in English and by:

a) Delivering it by hand (a written acknowledgement in receipt thereof shall be sufficient evidence that the notice or other information has been duly given); or

b) Sending it by nationally recognized courier;

to the relevant Parties at the addresses specified in the name clause of this Deed above.

32. SEVERABILITY

If at any time, any provision of this Lease Deed shall become or be held illegal, invalid or unenforceable in any respect under any law, then the legality, validity or enforceability of the remaining provisions shall not in any way be thereby affected or impaired.

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34. COUNTERPARTS

This Lease Deed may be executed in _____ (To fill in the number of copies of the lease deed which would be printed and signed in original) number of counterparts each of which shall be deemed to be an original.

Annexure 1 - Fixtures and fittings

Annexure 2 - Meter Readings

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement:

___________________________

________

___________________________

________