COMMERCIAL LEASE AGREEMENT

(Indiana – Court-Ready Template)

[// GUIDANCE: This template is intended for use in leasing commercial real property located in the State of Indiana. Bracketed items must be customized before execution. Delete all guidance comments in finalized drafts.]

TABLE OF CONTENTS

1. Document Header (Parties, Recitals)
2. Definitions
3. Operative Provisions
   3.1 Lease Grant
   3.2 Term & Possession
   3.3 Rent & Payment Terms
   3.4 Taxes & Assessments
   3.5 Use of Premises
4. Representations & Warranties
5. Covenants & Restrictions
   5.1 Maintenance & Repairs
   5.2 Alterations & Improvements
   5.3 Compliance with Laws; Environmental Matters
6. Default & Remedies
7. Risk Allocation
   7.1 Indemnification
   7.2 Limitation of Liability
   7.3 Insurance
   7.4 Force Majeure
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

COMMERCIAL LEASE AGREEMENT (this “Agreement”) is made and entered into effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between [LANDLORD LEGAL NAME], a [state & entity type] (“Landlord”), and [TENANT LEGAL NAME], a [state & entity type] (“Tenant”). Landlord and Tenant are sometimes referred to individually as a “Party” and collectively as the “Parties.”

RECITALS

A. Landlord is the fee simple owner of the real property commonly known as [PROPERTY ADDRESS], together with the building(s) and other improvements thereon (collectively, the “Property”).
B. Tenant desires to lease from Landlord, and Landlord desires to lease to Tenant, a portion of the Property commonly described in Exhibit A attached hereto (the “Premises”), all on the terms and conditions set forth herein.
C. In consideration of the mutual covenants and agreements herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

2. DEFINITIONS

For ease of reference, capitalized terms used in this Agreement have the meanings assigned below. Terms defined in the singular include the plural and vice-versa.

“Additional Rent” – Any amounts other than Base Rent payable by Tenant under this Agreement, including without limitation Taxes, Insurance Costs, Operating Expenses, late fees, and legal fees.

“Base Rent” – The monthly rental amount stated in Section 3.3(a), subject to adjustment, if any.

“Commencement Date” – The date on which the Lease Term begins, as determined under Section 3.2.

“Environmental Laws” – All federal, state, and local statutes, regulations, ordinances, and common-law duties relating to environmental protection, health and safety, Hazardous Materials, or industrial hygiene, including but not limited to the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 et seq.) and its Indiana counterparts.

“Expiration Date” – The last day of the Lease Term, as determined under Section 3.2.

“Hazardous Materials” – Any substance, material, or waste defined, listed, or regulated as hazardous, toxic, or as a contaminant or pollutant under Environmental Laws, including petroleum and petroleum-based products.

“Indemnified Parties” – Landlord and its respective members, managers, partners, shareholders, officers, directors, employees, agents, successors, and assigns.

“Lease Term” – The period between the Commencement Date and the Expiration Date, as it may be extended or earlier terminated pursuant to this Agreement.

“Operating Expenses” – All costs and expenses incurred by Landlord for operating, maintaining, repairing, and managing the Property, including utilities, insurance premiums, security, maintenance contracts, and capital expenditures amortized over their useful life.

“Rent” – Collectively, Base Rent and Additional Rent.

3. OPERATIVE PROVISIONS

3.1 Lease Grant

Subject to the terms and conditions of this Agreement, Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises together with the non-exclusive right to use all common areas appurtenant thereto.

3.2 Term & Possession

(a) Lease Term. The Lease Term shall commence on the Commencement Date and shall continue for [NUMBER] ([##]) years, unless earlier terminated as provided herein.
(b) Commencement Date Confirmation. Within ten (10) days after Tenant takes possession, the Parties shall execute a Commencement Date Memorandum confirming the Commencement Date and Expiration Date.
(c) Delay in Possession. If Landlord fails to deliver possession of the Premises by [TARGET DELIVERY DATE], Rent shall be abated until delivery occurs; such abatement shall be Tenant’s sole remedy for delay.

3.3 Rent & Payment Terms

(a) Base Rent. Tenant shall pay Landlord Base Rent in the amount of $[AMOUNT] per month, payable in advance on or before the first (1st) day of each calendar month.
(b) Escalations. Base Rent shall increase by [PERCENTAGE]% on each anniversary of the Commencement Date.
(c) Additional Rent. Tenant shall pay its Pro Rata Share ([__]%) of Operating Expenses, Taxes, and Insurance Costs within thirty (30) days after Landlord’s invoice.
(d) Late Charge & Interest. Any Rent not received within five (5) days after due shall bear interest at the lesser of 1.5% per month or the maximum rate permitted by law, plus a late fee of [AMOUNT OR %].
(e) Payment Method. All payments shall be made in lawful U.S. currency by ACH transfer to [DESIGNATED ACCOUNT] or as otherwise directed in writing.

[// GUIDANCE: Adjust escalation mechanics, CAM caps, and net/gross structure to fit the economic deal.]

3.4 Taxes & Assessments

Tenant shall pay or reimburse Landlord for (i) all real property taxes, assessments, and governmental impositions levied against the Property, and (ii) all personal property taxes on Tenant’s property.

3.5 Use of Premises

(a) Permitted Use. Tenant shall use the Premises solely for [SPECIFY USE] and for no other purpose without Landlord’s prior written consent.
(b) Prohibited Uses. Tenant shall not (i) create nuisance or waste, (ii) permit any auction, fire sale, or unsafe occupancy, or (iii) store Hazardous Materials except as expressly permitted under Section 5.3.
(c) Compliance. Tenant shall, at its expense, comply with all Laws (as defined in Section 5.3(a)) applicable to the Premises and Tenant’s use.

4. REPRESENTATIONS & WARRANTIES

4.1 Mutual Representations. Each Party represents and warrants to the other that:
(i) it is duly formed, validly existing, and in good standing under the laws of its jurisdiction of formation;
(ii) it has full power and authority to execute, deliver, and perform this Agreement;
(iii) this Agreement constitutes a valid and binding obligation enforceable against it in accordance with its terms; and
(iv) its execution and performance will not violate any agreement or court order binding upon it.

4.2 Landlord’s Limited Representations. Landlord further represents that, to its actual knowledge, the Premises are not subject to any outstanding governmental orders requiring remedial environmental action. LANDLORD MAKES NO OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, AS TO THE CONDITION OF THE PREMISES, WHICH ARE LEASED “AS IS,” EXCEPT AS EXPRESSLY SET FORTH HEREIN.

4.3 Survival. All representations and warranties shall survive the execution of this Agreement and, where expressly stated, the expiration or earlier termination of the Lease Term.

5. COVENANTS & RESTRICTIONS

5.1 Maintenance & Repairs

(a) Tenant’s Obligations. Tenant shall, at its sole cost, maintain the Premises (including HVAC serving only the Premises) in good order, condition, and repair, ordinary wear excepted.
(b) Landlord’s Obligations. Landlord shall maintain the structural components, roof, exterior walls, and building systems serving multiple tenants, the costs of which shall be included in Operating Expenses unless resulting from Landlord’s gross negligence or willful misconduct.

5.2 Alterations & Improvements

Tenant shall not make any Alterations (as defined below) without Landlord’s prior written consent, which shall not be unreasonably withheld. “Alterations” include any structural change, penetration of roof or exterior walls, or any improvement costing more than $[THRESHOLD] in a single project. All Alterations shall be performed (i) by licensed contractors, (ii) in accordance with Laws, and (iii) lien-free. Unless Landlord elects otherwise at the time of consent, all Alterations shall become Landlord’s property upon installation.

5.3 Compliance with Laws; Environmental Matters

(a) Compliance. Tenant, at its expense, shall comply with all federal, state, county, and municipal laws, statutes, ordinances, rules, regulations, and orders (collectively, “Laws”) applicable to the Premises, Tenant’s use, or the conduct of Tenant’s business.
(b) Hazardous Materials. Tenant shall not cause or permit the release, generation, storage, or disposal of Hazardous Materials on or about the Premises except for small quantities customarily used in Tenant’s business and handled in strict accordance with Environmental Laws.
(c) Environmental Indemnity. Tenant shall indemnify, defend, and hold harmless the Indemnified Parties from any and all claims, liabilities, damages, costs, and expenses (including reasonable attorneys’ fees) arising out of the presence or release of Hazardous Materials on the Property caused or exacerbated by Tenant, its employees, agents, or contractors.
(d) Remediation. Tenant shall promptly, at its sole cost, (i) investigate, clean up, remove, and remediate any Hazardous Materials introduced to the Property by Tenant, and (ii) comply with any closure or corrective action required by governmental authorities.

6. DEFAULT & REMEDIES

6.1 Events of Default

Each of the following constitutes an “Event of Default”:
(a) Monetary Default – Tenant fails to pay any Rent within five (5) days after notice that such payment is past due.
(b) Non-Monetary Default – Tenant fails to perform any non-monetary obligation and such failure continues for thirty (30) days after written notice (or, if the default is not curable within thirty (30) days, Tenant does not commence and diligently pursue cure).
(c) Bankruptcy/Insolvency – Tenant becomes insolvent, makes a general assignment for the benefit of creditors, files or has filed against it a petition in bankruptcy not dismissed within sixty (60) days, or is adjudged bankrupt or insolvent.
(d) Abandonment – Tenant vacates or abandons the Premises for fifteen (15) consecutive days without paying Rent or providing adequate security.

6.2 Landlord’s Remedies

Upon an Event of Default, Landlord may, at its option and without waiving any other rights:
(i) Terminate this Agreement and recover possession pursuant to Indiana’s commercial eviction procedures, including emergency possession where available;
(ii) Enter and repossess the Premises and, with or without termination, accelerate and recover Rent through the Lease Term, discounted to present value at three percent (3%) per annum;
(iii) Relet the Premises on Tenant’s behalf and apply proceeds to amounts due;
(iv) Recover all costs of enforcement, including reasonable attorneys’ fees; and
(v) Seek injunctive relief or specific performance as provided in Section 8.5.

6.3 Tenant’s Remedies

Landlord shall be in default if it fails to perform any obligation within thirty (30) days after written notice from Tenant (ten [10] days for monetary obligations), subject to force majeure. Tenant’s exclusive remedies are (i) abatement of Rent to the extent the Premises are rendered untenantable by Landlord’s default, or (ii) termination if Landlord’s default materially and adversely affects Tenant’s use and is not cured within sixty (60) days following second notice.

7. RISK ALLOCATION

7.1 Indemnification

Tenant shall indemnify, defend, and hold harmless the Indemnified Parties from and against any and all claims, causes of action, losses, damages, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising from or relating to (i) Tenant’s use or occupancy of the Premises, (ii) any act or omission of Tenant, its employees, agents, contractors, licensees, or invitees, or (iii) Tenant’s breach of this Agreement. The foregoing indemnity shall survive expiration or termination hereof.

7.2 Limitation of Liability

Except for (a) indemnification obligations, (b) willful misconduct, or (c) claims that cannot be limited under applicable law, each Party’s aggregate liability arising out of or relating to this Agreement shall not exceed [CAP AMOUNT OR “NO CAP”].

7.3 Insurance

(a) Tenant’s Insurance. Tenant shall maintain at its sole expense:
1. Commercial General Liability insurance with limits not less than $[MINIMUM LIMIT] per occurrence and $[AGGREGATE LIMIT] aggregate, naming Landlord as additional insured;
2. Property insurance covering Tenant’s personal property and trade fixtures on an “all risk” basis at full replacement cost;
3. Workers’ compensation as required by law; and
4. Business interruption insurance for not less than six (6) months of Rent.
(b) Certificates. Certificates evidencing the required coverages shall be delivered to Landlord prior to occupancy and upon renewals.

7.4 Force Majeure

Neither Party shall be liable for failure to perform obligations (other than monetary obligations) due to acts of God, governmental actions, fire, flood, epidemic, riot, labor unrest, or other causes beyond its reasonable control; provided that the affected Party gives prompt written notice and resumes performance as soon as practicable.

8. DISPUTE RESOLUTION

8.1 Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Indiana, without regard to conflict-of-laws principles.

8.2 Forum Selection

Subject to Section 8.3, any suit, action, or proceeding arising out of or relating to this Agreement shall be instituted exclusively in the state courts of competent jurisdiction located in [COUNTY], Indiana, and each Party irrevocably submits to such courts.

8.3 Arbitration (Optional)

[// GUIDANCE: Delete this Section if arbitration is not elected.]
At either Party’s election by written notice delivered within ten (10) days after service of a complaint, all disputes shall be resolved by binding arbitration administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules. The arbitration shall take place in [CITY], Indiana, before a single arbitrator who is an attorney with at least ten (10) years’ real estate experience. Judgment on the award may be entered in any court of competent jurisdiction.

8.4 Jury Trial Waiver (Optional)

[// GUIDANCE: Delete if a jury waiver is not desired or enforceable.]
EACH PARTY KNOWINGLY, VOLUNTARILY, AND IRREVOCABLY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF THIS AGREEMENT.

8.5 Injunctive Relief

Nothing in this Article shall restrict Landlord’s right to seek immediate injunctive or declaratory relief, including but not limited to eviction or possession proceedings, as permitted under Indiana law.

9. GENERAL PROVISIONS

9.1 Amendments and Waivers. No amendment or waiver shall be effective unless in writing and signed by both Parties. A waiver of any default shall not be a waiver of any other or subsequent default.

9.2 Assignment and Subletting. Tenant shall not assign, sublet, mortgage, pledge, or otherwise transfer its interest (collectively, a “Transfer”) without Landlord’s prior written consent, which shall not be unreasonably withheld. Conditions to consent may include:
(i) Delivery of executed Transfer documents;
(ii) Receipt of financial statements demonstrating the transferee’s net worth equal to or greater than Tenant’s at commencement;
(iii) Written assumption of all Tenant obligations; and
(iv) Payment to Landlord of fifty percent (50%) of any excess rent or other economic consideration derived from the Transfer after deducting reasonable marketing costs.
Any Transfer without consent is void and constitutes an Event of Default.

9.3 Successors and Assigns. Subject to Section 9.2, this Agreement binds and inures to the benefit of the Parties and their respective successors and permitted assigns.

9.4 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to render it valid and enforceable.

9.5 Integration. This Agreement (including all exhibits and schedules) constitutes the entire agreement between the Parties with respect to the subject matter hereof, superseding all prior proposals, negotiations, and understandings, whether oral or written.

9.6 Counterparts; Electronic Signatures. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original. Signatures delivered by electronic means (e.g., PDF, DocuSign, or similar) shall be deemed original and binding.

9.7 Notices. All notices shall be in writing and deemed given (i) when delivered in person, (ii) one (1) business day after deposit with a nationally recognized overnight courier, or (iii) three (3) days after mailing by certified U.S. mail, return receipt requested, postage prepaid, to the addresses below (or such other address designated by notice):
Landlord: [ADDRESS & CONTACT]
Tenant: [ADDRESS & CONTACT]

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Commercial Lease Agreement as of the Effective Date.

LANDLORD:

[LANDLORD LEGAL NAME]
By: ____
Name: ____
Title: _____
Date: _________

TENANT:

[TENANT LEGAL NAME]
By: ____
Name: ____
Title: _____
Date: _________

[NOTARY BLOCK – Add if required for recording or enforceability in Indiana.]

EXHIBIT A

LEGAL DESCRIPTION AND FLOOR PLAN OF THE PREMISES
[Attach metes-and-bounds description and/or scaled drawing.]

EXHIBIT B

COMMENCEMENT DATE MEMORANDUM
[Short-form confirming dates; suitable for recording if desired.]

EXHIBIT C

RULES AND REGULATIONS
[Building rules; hours of operation, loading areas, signage, etc.]

[// GUIDANCE:
1. Verify insurance limits with client’s risk manager.
2. Confirm that late fees, interest, and jury waivers comply with current Indiana statutes and public policy.
3. For shopping centers or multi-tenant campuses, incorporate CAM reconciliation mechanics.
4. Consider filing a memorandum of lease for terms exceeding three (3) years.]