Commercial Lease Agreement - Maine

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)

Use gate. Complete the premises, title, expense, tax, use, compliance,
environmental, construction, security, notice, default, possession,
insurance, risk, and dispute schedules before signature. Do not use this
form for a dwelling, mixed residential use, ground lease, agricultural
tenancy, public property, licensed facility, or another specially regulated
occupancy without tailored terms.

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.

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]

(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 — Select After Counsel Review. ☐ No late charge or interest. ☐ Late charge of [____] after [____] days. ☐ Simple interest on undisputed overdue amounts at [____]% per year, not exceeding an applicable limit. ☐ Other: [________________________________].
(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

Concurrent with Tenant’s execution of this Lease, Tenant shall deposit
$[AMOUNT]. Exhibit F shall state custody, commingling or segregation, permitted
applications, replenishment, accounting, transfer, interest treatment, return
conditions, itemization, deadline, delivery method, and any letter-of-credit
alternative. The Parties select a contractual return deadline of [____] days
after [DEFINE THE TRIGGERING EVENTS: ______________________________].

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. Exhibit D shall allocate notice, restoration, access, rent,
termination, insurance, and alternative-service consequences for an
interruption. This body text states no automatic waiver, abatement, or
constructive-eviction result.

3.7 Maintenance, Repairs, and Alterations

(a) Tenant’s Obligations. Tenant shall perform the maintenance, repair,
replacement, inspection, and service responsibilities allocated to it in
Exhibits D and E.
(b) Landlord’s Obligations. Landlord shall perform the structural, roof,
exterior, common-area, capital, preexisting-condition, and other responsibilities
allocated to it in Exhibits D and E. The exhibits shall state which costs may
be included in Operating Expenses.
(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) Construction Claims. Exhibit E shall state notice, bonding, withholding,
dispute, discharge, and restoration procedures for claims arising from
Tenant-directed work. This clause does not create a statutory lien remedy.

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. Exhibit E shall allocate each identified use, occupancy,
accessibility, fire, safety, building, environmental, licensing, signage,
privacy, employment, and other requirement. A generic duty to comply with law
does not by itself allocate structural work, preexisting conditions, capital
work, permits, or changes in requirements.
(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) The individuals executing this Lease on its behalf have the authority
identified in Schedule 4.1.

4.2 Landlord’s Representations. Landlord represents only that it holds the
estate or leasing authority described in Schedule 4.2, subject to the disclosed
title exceptions, lender rights, declarations, easements, and superior
agreements. Zoning, licensing, occupancy, and permitted-use conclusions appear
only in the completed Exhibit E.

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. Exhibit D shall state
the review standard, permitted transfers, conditions, fees, profit sharing,
continuing liability, and release terms.
(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

Exhibit G shall identify each monetary, nonmonetary, assignment, occupancy,
insurance, representation, and other default; the required notice; service
method; cure period or standard; waiver treatment; and selected consequence.
Any insolvency-related event and consequence must be separately approved by
bankruptcy counsel for the actual proceeding.

6.2 Landlord’s Remedies

Exhibit G shall identify each required notice, termination date, possession
route, monetary remedy, reletting treatment, mitigation duty, property-handling
procedure, fee provision, and evidence requirement. Landlord may recover
possession only through Tenant's voluntary surrender or lawful court process
and execution; this Lease does not authorize lockout, property removal,
essential-service interruption, or another dispossession self-help method. No
future-rent acceleration, automatic fee award, administrative surcharge,
injunction, or exclusive remedy applies unless a completed, counsel-approved
clause expressly and lawfully provides it.

6.3 Tenant’s Remedies

Exhibit G shall identify Tenant's notice, repair, access, abatement, setoff,
termination, damages, performance, and other selected remedies. This body text
does not create or waive a remedy by implication.

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

Exhibit H shall identify for each Party the required policy, insureds and
additional insureds, limits, deductibles or retentions, covered property and
activities, valuation method, endorsements, primary or excess position, waiver
of subrogation, evidence, notice, lapse, casualty proceeds, restoration, lender
requirements, and advisor approval.

7.2 Indemnification

☐ No contractual indemnity. ☐ Tenant indemnity. ☐ Landlord indemnity. ☐
Mutual, risk-specific indemnities. Exhibit H must identify covered third-party
claims, premises or activity nexus, negligence allocation, exclusions, notice,
defense control, settlement consent, cooperation, insurance interaction,
shared fault, and survival.

7.3 Limitation of Liability

☐ No aggregate contractual cap. ☐ Cap of $[________]. ☐ Different caps by
claim type in Exhibit H. Exhibit H shall state any excluded damage categories
and carve-outs after review of rent, deposits, title, possession, personal
injury, property damage, environmental, accessibility, confidentiality,
indemnity, fraud, and willful-misconduct risks.

7.4 Force Majeure

Exhibit H shall identify covered events, excluded obligations, notice,
mitigation, extension, access, restoration, insurance, rent, termination, and
allocation consequences. This body text states no automatic excuse, abatement,
or termination rule.

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
☐ Court with jurisdiction where the Premises are located. ☐ Another
counsel-approved forum: [________________________________]. The selection does
not create jurisdiction or override a mandatory possession or recording venue.

8.3 Arbitration (Optional)
☐ No predispute arbitration clause. ☐ Counsel-approved arbitration rider
attached, identifying administrator or rules, seat, scope, excluded possession
or recording proceedings, arbitrator count, interim-relief route, fees,
confidentiality, discovery, award, review, and judgment procedure.

8.4 Jury Trial Waiver (Optional)
☐ No predispute jury waiver. ☐ Counsel-approved jury rider attached after
review of the Parties, claims, forum, formation process, presentation, and
current Maine authority.

8.5 Injunctive Relief
Any equitable-relief, notice, security, bond, possession, or emergency term
must be selected in Exhibit G and remains subject to governing law and the
tribunal's authority.

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
The Parties may sign counterparts. They select ☐ wet signatures ☐ an
identified electronic-signature process: [________________________________].
Counsel shall confirm any formality applicable to the lease term, property,
parties, guarantees, acknowledgments, recording, and exhibits.

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: _______________________________

Additional execution, guaranty, acknowledgment, witness, lender, or recording
document required: [________________________________]

Current counsel-approved form and version: [________________________________]

EXHIBIT REGISTER

• Exhibit A: Premises Plan and Access
• Exhibit B: Legal Description, Title, Superior Interests, and Lender Rights
• Exhibit C: Commencement, Delivery, Condition, and Construction
• Exhibit D: Rent, Operating Expenses, Taxes, Utilities, Security, and Assignment
• Exhibit E: Use, Zoning, Licensing, Accessibility, Environmental, and Alterations
• Exhibit F: Security Deposit or Letter of Credit
• Exhibit G: Notices, Defaults, Possession, Property Handling, and Remedies
• Exhibit H: Insurance, Indemnity, Casualty, Condemnation, and Risk Allocation
• Exhibit I: Dispute, Signature, Recording, and Transaction-Specific Riders