DISCLAIMER
This template is provided for general informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by your use of this template. Commercial leasing laws vary by jurisdiction and may change. You should engage qualified Maine counsel to review, customize, and approve this document before use.

COMMERCIAL LEASE AGREEMENT

(State of Maine)

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
   3.1 Lease of Premises
   3.2 Term; Possession; Holding Over
   3.3 Rent and Additional Rent
   3.4 Security Deposit
   3.5 Taxes; Assessments
   3.6 Utilities and Services
   3.7 Maintenance, Repairs, and Alterations
   3.8 Use; Compliance With Laws
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
   7.1 Insurance
   7.2 Indemnification
   7.3 Limitation of Liability
   7.4 Force Majeure
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

THIS COMMERCIAL LEASE AGREEMENT (this “Lease”) is made and entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

1. [LANDLORD LEGAL NAME], a [STATE OF ORGANIZATION] [TYPE OF ENTITY] (“Landlord”), having its principal place of business at [LANDLORD ADDRESS]; and
2. [TENANT LEGAL NAME], a [STATE OF ORGANIZATION] [TYPE OF ENTITY] (“Tenant”), having its principal place of business at [TENANT ADDRESS].

RECITALS
A. Landlord is the fee owner of certain real property commonly known as [STREET ADDRESS, CITY, ME ZIP], together with the building(s), improvements, and appurtenances thereon (collectively, the “Property”).
B. Tenant desires to lease from Landlord, and Landlord desires to lease to Tenant, a portion of the Property identified herein, on the terms and conditions set forth below.
NOW, THEREFORE, in consideration of the mutual covenants herein and 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, the following capitalized terms shall have the meanings set forth below. Terms defined in the singular include the plural and vice-versa.

“Additional Rent” – Any and all amounts, other than Base Rent, payable by Tenant under this Lease.
“Assignment” – Any transfer, whether direct or indirect, of Tenant’s interest in this Lease or the Premises, including transfers by operation of law.
“Base Rent” – The fixed rental amount specified in Section 3.3(a).
“Business Days” – Monday through Friday, excluding Maine state and U.S. federal holidays.
“Commencement Date” – The date specified in Section 3.2(a) on which the Term begins.
“Environmental Laws” – All federal, state, and local statutes, regulations, ordinances, and common-law relating to environmental protection, hazardous substances, or human health and safety.
“Event of Default” – Any of the occurrences described in Section 6.1.
“Hazardous Material” – Any substance or material regulated under Environmental Laws.
“Lease Year” – Each consecutive twelve-month period beginning on the Commencement Date (or anniversary thereof).
“Premises” – The approximately [SQUARE FEET] rentable square feet depicted on Exhibit A.
“Rent” – Collectively, Base Rent and Additional Rent.
“Security Deposit” – The amount described in Section 3.4.
“Term” – The initial lease term described in Section 3.2, as the same may be extended or sooner terminated.

[// GUIDANCE: Add or delete defined terms to align with the deal.]

3. OPERATIVE PROVISIONS

3.1 Lease of Premises

(a) Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises.
(b) The Premises are leased together with the non-exclusive right to use those common areas of the Property designated by Landlord for shared use (the “Common Areas”).

3.2 Term; Possession; Holding Over

(a) Commencement & Expiration. The Term shall commence on [COMMENCEMENT DATE] and, unless sooner terminated, expire on [EXPIRATION DATE].
(b) Delay in Possession. If Landlord cannot deliver possession of the Premises on the Commencement Date for any reason beyond Landlord’s reasonable control, Landlord shall not be liable for damages, nor shall the Lease be void or voidable, but Base Rent shall abate until possession is delivered.
(c) Holding Over. If Tenant holds over without Landlord’s written consent, tenancy shall be month-to-month at 150 % of the Base Rent then in effect and otherwise on the terms herein, except that Tenant shall have no renewal or expansion rights.

3.3 Rent and Additional Rent

(a) Base Rent. Tenant shall pay to Landlord, without setoff or deduction, Base Rent as follows:
• Lease Year 1: $[AMOUNT] per month ($[AMOUNT] annually)
• Lease Year 2: $[AMOUNT] per month ($[AMOUNT] annually)
• [ADD ADDITIONAL YEARS AS NEEDED]
[// GUIDANCE: Consider including annual percentage escalations or CPI adjustments.]
(b) Payment. Rent is due in advance on the first Business Day of each month at Landlord’s Address or by electronic transfer per Landlord’s instructions.
(c) Late Charge & Interest. Rent not received within five (5) Business Days after due shall accrue a late charge of five percent (5 %) of the overdue amount plus interest at the lesser of 10 % per annum or the maximum rate permitted by law.
(d) Additional Rent. Tenant shall pay as Additional Rent all amounts required under this Lease, including but not limited to Operating Expenses, Taxes, insurance reimbursements, utilities, and repair costs.

3.4 Security Deposit

(a) Concurrent with Tenant’s execution of this Lease, Tenant shall deposit with Landlord the Security Deposit in the amount of $[AMOUNT] as security for Tenant’s performance.
(b) Landlord may (but need not) apply the Security Deposit to cure any Event of Default, and Tenant shall promptly replenish any amounts so applied.

3.5 Taxes; Assessments

Tenant shall pay its proportionate share of all real estate taxes, assessments (general and special), and governmental charges allocable to the Premises, prorated for partial periods. Payment shall be due within thirty (30) days after Landlord’s invoice.

3.6 Utilities and Services

(a) Tenant shall arrange and pay for all utilities serving the Premises, including electricity, gas, water, sewer, telephone, data, and trash removal, unless otherwise set forth in Exhibit B.
(b) Interruption. Interruption of utilities due to causes beyond Landlord’s reasonable control shall not constitute constructive eviction or entitle Tenant to abatement, except as expressly provided by applicable Maine law.

3.7 Maintenance, Repairs, and Alterations

(a) Tenant’s Obligations. Tenant, at its sole cost, shall keep and maintain the Premises (including interior systems) in first-class condition, reasonable wear and tear and casualty excepted.
(b) Landlord’s Obligations. Landlord shall maintain the structural components, roof, exterior walls, and Common Areas, and may include the cost thereof in Operating Expenses unless the repair is necessitated by Tenant’s negligence or breach.
(c) Alterations. Tenant may not make any alterations or improvements without Landlord’s prior written consent, which consent shall not be unreasonably withheld as to non-structural work costing less than $[THRESHOLD]. All permitted alterations shall be at Tenant’s sole cost, using licensed contractors, and shall become Landlord’s property upon installation unless Landlord elects otherwise.
(d) Liens. Tenant shall keep the Property free from mechanics’ and materialmen’s liens arising out of work performed by or for Tenant.

3.8 Use; Compliance With Laws

(a) Permitted Use. The Premises shall be used solely for [SPECIFY PERMITTED USE] and for no other purpose without Landlord’s prior written consent.
(b) Compliance. Tenant shall, at its expense, comply with all applicable federal, state, and local laws, ordinances, regulations, and orders (including Environmental Laws) relating to (i) Tenant’s use and occupancy of the Premises and (ii) any work performed therein.
(c) Environmental Matters. Tenant shall not generate, store, release, or dispose of any Hazardous Material in, on, or about the Property except in customary quantities incidental to its permitted use and in strict compliance with Environmental Laws. Tenant shall promptly provide Landlord with copies of any notices received from governmental authorities relating to environmental conditions at the Property.

4. REPRESENTATIONS & WARRANTIES

4.1 Mutual Representations. Each party represents and warrants that:
(a) It is duly organized, validly existing, and in good standing under the laws of its state of formation and authorized to transact business in Maine;
(b) It has full power and authority to enter into and perform this Lease; and
(c) This Lease has been duly authorized, executed, and delivered and constitutes its valid, binding obligation enforceable in accordance with its terms.

4.2 Landlord’s Representations. Landlord further represents that, to Landlord’s knowledge as of the Effective Date, (i) it holds fee simple title to the Property free of monetary liens other than those of record, and (ii) the Premises may lawfully be used for the Permitted Use.

4.3 Survival. All representations and warranties shall survive the execution and delivery of this Lease and may be enforced at any time prior to expiration or earlier termination.

5. COVENANTS & RESTRICTIONS

5.1 Affirmative Covenants of Tenant:
(a) Maintain insurance as required herein;
(b) Timely pay Rent and perform all obligations;
(c) Provide access to Landlord for inspection and maintenance on reasonable notice, except emergencies.

5.2 Negative Covenants of Tenant:
(a) No Assignment or Subletting except in compliance with Section 5.3;
(b) No nuisance, waste, or unlawful activity;
(c) No exterior signs without Landlord’s prior written approval.

5.3 Assignment & Subletting
(a) Consent Required. Tenant shall not Assign or sublet all or any portion of the Premises without Landlord’s prior written consent, which may be withheld in Landlord’s sole discretion, subject to applicable Maine commercial leasing laws.
(b) Conditions. As a condition of consent, Landlord may require (i) delivery of a fully executed assignment or sublease acceptable to Landlord, (ii) reimbursement of Landlord’s reasonable legal and administrative fees, and (iii) that Tenant remain primarily liable.
(c) Profits. Fifty percent (50 %) of any Net Profits (as defined below) derived from any Assignment or sublease shall be paid to Landlord within thirty (30) days of receipt. “Net Profits” means consideration received less reasonable brokerage commissions and tenant-improvement costs actually paid.

6. DEFAULT & REMEDIES

6.1 Events of Default

Any of the following shall constitute an “Event of Default”:
(a) Failure to pay any Rent when due and such failure continues for five (5) Business Days after written notice;
(b) Failure to perform any non-monetary obligation within thirty (30) days after notice (or, if not curable within thirty days, failure to commence and diligently pursue cure);
(c) Assignment, subletting, or vacating in violation of this Lease;
(d) Filing of voluntary or involuntary bankruptcy or insolvency proceeding not dismissed within sixty (60) days;
(e) Any representation or warranty proving materially false.

6.2 Landlord’s Remedies

Upon any Event of Default, Landlord may, without prejudice to any other rights:
1. Terminate this Lease and recover possession pursuant to Maine commercial eviction (unlawful detainer) procedures;
2. Accelerate all Rent due for the remainder of the Term, discounted to present value at 5 % per annum;
3. Re-enter and relet the Premises on Tenant’s behalf and apply proceeds to Rent, holding Tenant liable for any deficiency;
4. Recover all damages, including attorneys’ fees and costs;
5. Pursue injunctive relief or specific performance where monetary damages are inadequate.

[// GUIDANCE: Maine law requires strict adherence to statutory notice periods before initiating eviction; confirm current timelines.]

6.3 Tenant’s Remedies

If Landlord fails to perform any covenant and such failure materially interferes with Tenant’s use, Tenant may provide written notice specifying default. If Landlord fails to cure within thirty (30) days (or reasonably longer if cure requires more time), Tenant may (i) self-perform and offset reasonable documented costs against Rent (not to exceed one month’s Base Rent per occurrence) or (ii) pursue equitable relief; provided, however, that such remedies do not waive Tenant’s claim for damages.

6.4 Mitigation

Both parties shall use commercially reasonable efforts to mitigate damages arising from an Event of Default.

7. RISK ALLOCATION

7.1 Insurance

(a) Tenant Coverage. Tenant shall maintain during the Term:
 1. Commercial General Liability insurance with limits not less than $[LIMIT] per occurrence and $[LIMIT] aggregate, naming Landlord and Landlord’s mortgagee as additional insureds;
 2. Property insurance on a “special form” basis covering Tenant’s personal property and improvements at full replacement cost;
 3. Workers’ compensation as required by law.
(b) Landlord Coverage. Landlord shall maintain property insurance on the Building and liability insurance customary for similar Maine properties.
(c) Certificates. Each party shall deliver evidence of required coverage prior to occupancy and upon renewals.

7.2 Indemnification

Tenant shall defend, indemnify, and hold harmless Landlord and its agents from and against all claims, damages, liabilities, and expenses (including reasonable attorneys’ fees) arising out of (i) Tenant’s use or occupancy of the Premises, (ii) the conduct of Tenant’s business, (iii) any act or omission of Tenant, its employees, contractors, or invitees, or (iv) any breach of this Lease by Tenant, except to the extent caused by Landlord’s gross negligence or willful misconduct.

7.3 Limitation of Liability

Except for matters arising from Landlord’s gross negligence or willful misconduct, Landlord’s liability shall in no event exceed the equity interest of Landlord in the Property (including insurance proceeds and sale proceeds). [// GUIDANCE: If a liability cap is negotiated, insert specific dollar amount or other formula here.]

7.4 Force Majeure

Neither party shall be liable for delays or failures in performance (other than monetary obligations) due to events beyond its reasonable control, including acts of God, war, terrorism, labor disputes, governmental actions, pandemics, or shortages of materials; provided, however, that the affected party gives prompt notice and resumes performance as soon as practicable.

8. DISPUTE RESOLUTION

8.1 Governing Law
This Lease shall be governed by and construed in accordance with the laws of the State of Maine, without regard to conflicts-of-law principles.

8.2 Forum Selection
Subject to Section 8.3, each party irrevocably submits to the exclusive jurisdiction of the state courts located in [COUNTY], Maine, and waives objection to venue therein.

8.3 Arbitration (Optional)
[DELETE if not elected.] At either party’s written election, any dispute not resolved within thirty (30) days after notice may be submitted to binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. The arbitration shall be conducted in [CITY], Maine, before one neutral arbitrator, and judgment on the award may be entered in any court of competent jurisdiction.

8.4 Jury Trial Waiver (Optional)
[DELETE if not elected.] TO THE EXTENT PERMITTED BY LAW, EACH PARTY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF THIS LEASE.

8.5 Injunctive Relief
Nothing herein shall limit either party’s right to seek temporary, preliminary, or permanent injunctive relief, including but not limited to eviction or unlawful detainer remedies available to Landlord under Maine law.

9. GENERAL PROVISIONS

9.1 Notices
All notices under this Lease shall be in writing and deemed given when (i) delivered personally, (ii) sent by nationally recognized overnight courier, or (iii) deposited in the U.S. Mail, certified, return-receipt requested, postage prepaid, addressed to the parties at their respective notice addresses set forth herein (or such other addresses as either party may designate by notice).

9.2 Amendments & Waivers
No amendment or waiver of any provision shall be effective unless in writing signed by both parties. Waiver of any breach shall not be deemed a waiver of any subsequent breach.

9.3 Entire Agreement
This Lease, together with its exhibits and any addenda, constitutes the entire agreement between the parties and supersedes all prior or contemporaneous understandings with respect to the Premises.

9.4 Severability
If any provision is held unenforceable, the remainder of the Lease shall remain in full force, and the unenforceable provision shall be reformed to the minimum extent necessary to comply with law while effectuating the parties’ intent.

9.5 Successors & Assigns
Subject to the restrictions on Assignment, this Lease shall bind and benefit the parties and their respective successors and permitted assigns.

9.6 Relationship of Parties
Nothing herein shall be deemed or construed to create a partnership, joint venture, or agency relationship between the parties.

9.7 Counterparts; Electronic Signatures
This Lease may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures delivered via electronic means shall be deemed original.

9.8 Interpretation
Headings are for convenience only and shall not affect interpretation. The parties have jointly negotiated and drafted this Lease; no presumption shall arise against either party regarding interpretation.

10. EXECUTION BLOCK

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

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

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

[OPTIONAL NOTARY ACKNOWLEDGMENT – include if recording or lender requires]
State of Maine
County of ____

On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared ____, proved to me through satisfactory evidence of identification to be the person whose name is signed above, and acknowledged the foregoing instrument to be his/her free act and deed.

Notary Public
My Commission Expires: _______

[// GUIDANCE:
1. Attach Exhibit A – Floor Plan or Legal Description of Premises.
2. Attach Exhibit B – Allocation of Operating Expenses & Utility Matrix.
3. Confirm compliance with any municipal permitting, fire code, or accessibility obligations before delivery of possession.
4. Verify statutory notice periods for commercial eviction under current Maine law (unlawful detainer) and update Section 6 accordingly.
5. Review environmental representations if the Premises has prior industrial use history.]