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Lease Agreement
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Prepared for:
[Lessee Company Name]

Prepared by:
[Lessor Company Name]

Lease Agreement

THIS LEASE AGREEMENT (the “Agreement”) is made at [Date] on [Execution Date] (the “Execution Date”)

BETWEEN

[Company Name], a company with registered office at [Company Address] represented by [Lessor Name] (hereinafter the “Lessor” which term shall unless repugnant to the context shall mean and include its representatives, successors, administrators and assigns, of the party at the ‘First Part’); 

AND

[Company Name], a company with registered office at [Company Address], represented by [Lessee Name] (hereinafter the “Lessee” which term shall unless repugnant to the context shall mean and include its representatives, successors, administrators, and assigns, of the party at the ‘Second Part’).

The Lessor and Lessee are referred to individually as ‘Party’ and collectively as ‘Parties’. 

Recitals

WHEREAS:
  1. The Lessor is the sole owner and is absolutely seized and possessed of and/or is otherwise well and sufficiently entitled to the Land (as defined in the First Schedule hereto) and the commercial premises situated thereon (hereinafter referred to as the “Demised Premises”) situated at [Place]. 
  1. The Lessee is in the business of [Business Description] (“Business”), and is in need of industrial premises to carry on its activities, the Lessee has requested the Lessor to grant the Lessee a lease of the Demised Premises for a period of [Number], commencing from [Date] (the “Lease Commencement Date”) and expiring on [Date] (the “Lease Expiry Date”) (both days inclusive), which the Lessor has agreed to do, at or for the monthly lease rent and upon the terms and conditions hereinafter appearing.
  1. The Parties hereto are desirous of recording the said terms and conditions in the manner hereinafter stated.

NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the Parties hereto as under:

Terms and Conditions

1. Definitions

In this Agreement, in addition to the terms defined in this Agreement or unless a contrary intention appears, the following words and expressions shall have the following meanings:
  1. Acts of God” shall mean the effects of any natural element or other natural disasters including but not limited to flood, tempest, accident, storm, flood, lightning, earthquake, etc. which are beyond the control of the Parties. 
  1. Agreement” shall mean this Lease Agreement and all Schedules and Annexures attached to it, all read together and shall include any modifications of this Lease Agreement from time to time in accordance with the terms of this Lease Agreement.
  1. Amenities” shall mean the specifications and amenities enlisted in the Third Schedule hereunder written to be provided in the Demised Premises by the Lessor for use by the Lessee for and during the Lease Term (as defined below), in terms of Clause 8 hereof.
  1. Applicable Laws” shall include any statute, legislation, treaty, code, law, regulation, ordinance, rule, notification, circular, judgment, order, decree, by-law or approval, order or judgment of any competent authority, directive, guideline, policy, requirement, or other governmental restriction or any similar form of a decision of, or determination by, or any interpretation or adjudication having the force of law in India, of any of the foregoing, by any competent authority/ Governmental Authority having jurisdiction over the matter in question.

2. Grant of Lease

The Lessor doth hereby demise unto the Lessee the commercial premises, i.e. a building, [Details of Commercial Premises], more particularly described in the Second Schedule hereunder written and hereinafter referred to as ‘the Demised Premises’.

3. Term of Lease

The lease hereby granted shall be for a period of [Number] months (‘Lease Term’) commencing from [Start Date] (‘Lease Commencement Date’) and expiring on [Expiry Date] (‘Lease Expiry Date’) (both days inclusive). 
Neither Party shall be entitled to terminate the Agreement during the first 3 (Three) years of the Lease Term. (“Lock-in Period”). Provided that, notwithstanding anything contained herein, the Lessor shall be entitled to terminate the lease during the Lock-In Period in the event that the Lessee defaults in the payment of Lease Rent or a part thereof for a period of 3 (three) consecutive months. 
After the expiry of the Lock-in Period, either Party shall have the right to terminate the Agreement by giving the other Party prior written notice of 3 (three) months.

4. Lease Rent

  1. In consideration of the Lessor granting a lease of the Demised Premises to the Lessee, the Lessee shall pay to the Lessor the monthly lease rent, of [Amount] (the “Lease Rent”) from the Lease Commencement Date for the first 3 (Three) years of the Lease Term. 
  1. The Lease Rent shall be subject to deduction of tax at source (TDS), as applicable, and shall be payable in advance on or before the 15th (Fifteenth) day of the relevant calendar month. 
  1. The Lessee shall bear and pay service tax or other like impositions, levies, taxes, and cesses as and when levied whether presently or in the future in respect of the use of Demised Premises by the Lessee (or Affiliates) and/or the Lease Rent payable hereunder.

5. Security Deposit and Handover of Possession

  1. The Lessee has, as on the execution of this Agreement, deposited with the Lessor, a sum of [Amount], as and by way of an interest-free refundable security deposit as security for the due observance/ performance of the terms and conditions of this Agreement by the Lessee (‘the Security Deposit’), the receipt whereof the Lessor hereby admits and acknowledges.
  1. The Security Deposit, the unadjusted Lease Rent and any other amount of money refundable/ payable by the Lessor to the Lessee shall be paid/refunded to the Lessee subject to and upon the following terms:
  1. At the time of handover of vacant possession of the Demised Premises by the Lessee to the Lessor, the Lessor shall refund the Security Deposit. 
  1. Without prejudice to any and all rights available to the Lessor, in the event of default in payment of Lease Rent for a period of 3 (Three) consecutive months, the Lessor shall be entitled to make an appropriate deduction from the Security Deposit prior to refund, in accordance with Clause 4.  
  1. In the event the Lessor fails to pay/refund the Security Deposit, the unadjusted Lease Rent and/or any other amount of money refundable/payable by the Lessor to the Lessee in accordance with sub-clause (a) above, without prejudice to any other rights the Lessee may have in law, (i) Lessor shall make payment of interest @ 18% (eighteen percent) per annum on the amount of the Security Deposit, the unadjusted Lease Rent and/or any other amount of money refundable/payable by the Lessor to the Lessee in accordance with sub-clause (a) above till the time of actual payment thereof; and (ii) the Lessee may continue to use the Demised Premises without having to pay any further Lease Rent (if any) until the Lessor pays/ refunds the Security Deposit, the unadjusted lease Rent and/or any other amount of money refundable/payable by the Lessor to the Lessee along with interest payable thereon in accordance with (i) above.   
  1. The Security Deposit amount shall be returned by the Lessor to the Lessee either on the expiry of the Lease Term or on earlier termination of the Agreement, at the time of handover of vacant possession of the Demised Premises, subject to deductions/set off or adjustments for any damage caused to the Demised Premises, as may be mutually agreed between the Parties, and whereas the Lessee shall not unreasonably deny the Lessor such deductions/set-off, pending EB bills, etc, subject to TDS, if any.
  1. On the expiry or sooner termination of the lease granted hereunder in accordance with this Agreement, and subject to the provisions of Clause 5.2(c) above, the Lessee shall remove itself together with its belongings from the Demised Premises (without causing any damage thereto) and shall within 15 days hand-over vacant possession of the Demised Premises to the Lessor,  in good condition and on an "as is where is" basis and shall dismantle and remove from the Demised Premises.

6. Maintenance and Repairs

The Parties agree that the Lessee shall at its own expense, maintain and make all repairs and alterations to the non-structural portions of the Demised Premises including fixtures, utilities and improvements carried out and used by the Lessee during the Lease Term and that the Lessor shall bear the expenses for all the requisite repairs, maintenance, alterations or improvements to the basic structure of the Demised Premises.

7. Amenities

The Lessor agrees that the Demised Premises shall confirm to the specifications and shall be provided with the amenities (more particularly described / enlisted in the “Third Schedule” hereunder written) (“the Amenities”) for use by the Lessee for and during the Lease Term.

8. Lessor's Covenants, Representations, and Warranties

The Lessor hereby covenants, represents and warrants with and to the Lessee as under: 
  1. The Lessor is the sole and absolute owner of the Demised Premises, is absolutely seized of and/or otherwise well and sufficiently entitled to the Demised Premises and the Lessor has the power and authority to grant the Demised Premises on lease to the Lessee in the manner contemplated herein. 
  1. The Lessor is fully authorized to enter into this Agreement and the execution of this Agreement constitutes legal, valid and binding obligations on the part of the Lessor and that all resolutions, filings, consents, declarations as may be necessary in law or otherwise to be made by the Lessor to give effect to this Agreement have been duly passed, made and/or obtained.
  1. The Lessor hereby covenants with the Lessee that the execution of this Agreement would not result in a breach of any arrangement, agreement or understanding arrived at with any other person or party.
  1. The Demised Premises is free from any charge, mortgage, lien or other encumbrance whatsoever nature and no other person has any claim, right, title interest in respect of the Demised Premises and the Demised Premises is not the subject matter of any order of attachment or other prohibitory order likely to affect the day to day operations of the Lessee or prevent the Lessor from giving the same on lease to the Lessee in the manner contemplated in this Agreement. 
  1. The Lessor has obtained all approvals, permissions, clearances, sanctions and licenses from the relevant governmental authorities in respect of the Demised Premises and the Amenities as are necessary to render the Demised Premises and the Amenities fit for occupation and use by the Lessee in the manner contemplated in this Agreement.  
  1. The Lessor hereby declares and warrants that he/she/it has paid all applicable taxes and utility bills payable in respect of the Demised Premises till the date of the execution of this Agreement. 
  1.  The Lessor hereby warrants that the Lessee shall be entitled to peacefully use the Demised Premises in the manner specified in this Agreement for and during the Lease Term, without any hindrance or interruption by the Lessor and/or by any other person(s) claiming by, from, through and/or in trust for the Lessor and further, the Lessee and/or its employees, officers, sub-contractors, suppliers or other persons duly authorized by the Lessee to enter upon the Demised Premises shall have unhindered and uninterrupted access to the Demised Premises at all times during the Lease Term. 
  1. The Lessor hereby warrants that the Lessee shall enjoy exclusive and unhindered use of the Demised Premises under the terms of this Agreement. 
  1. The Lessee shall be entitled to carry out from time to time, at its own cost and expense, renovations, additions and/or alterations in the Demised Premises, of a non-permanent and non-structural nature as may be reasonably necessary.
  1. The Lessor shall carry out all major and/or structural repairs to the Demised Premises, and the costs of the same shall be borne by the Lessor provided however if such repairs are attributable to any act or default of the Lessee, then the entire cost and expense of such repairs shall be borne by the Lessee alone.
  1. The Lessor shall not do anything or omit or suffer to be done anything whereby the lease of the Demised Premises under the terms of this Agreement is avoided, forfeited, prejudicially affected, or extinguished.

9. Lessee's Covenants, Representations, and Warranties

The Lessee hereby covenants, represents, and warrants with and to the Lessor as under:
  1. The Lessee shall pay to the Lessor, the Lease Rent in a timely manner as contemplated in this Agreement.
  1. The Lessee shall not part with the charge of the Demised Premises (or any part thereof) to anyone, except the Lessor.
  1. The Lessee shall keep and maintain, at its own cost and expense, the Demised Premises in good and tenantable repair and condition, subject to ordinary wear and tear. 
  1. The Lessee shall pay, directly to the relevant authorities and by their respective due dates, electricity charges as recorded in the meter and water charges as per consumption by the Lessee in the Demised Premises. The Lessee shall pay the electricity charges pertaining to both such electricity connections, as more fully described in the Third Schedule hereto.
  1. The Lessee shall only use the terrace area mentioned in the Third Schedule for dining purposes and not for any commercial activities or storage purposes. 
  1. The Lessee shall duly observe all Applicable Laws including any relevant bye-laws in relation to the Demised Premises.

10. Inspection

The Lessor and/or its designated representatives shall have the right, from time to time, during normal business hours on any working day, to enter the Demised Premises, with prior notice in writing of at least one (1) business day to the Lessee, for the purpose of inspection or repairs and to view any user of the Demised Premises.

11. Force Majeure

If at any time during the subsistence of the Lease Term, and notwithstanding anything to the contrary contained in these presents, the Demised Premises are destroyed or damaged by fire, any Acts of God, war, acts of terrorism, or due to any other cause beyond the control of the either Party and not attributable to any act, Agreement or omission of the Lessee, so that the Demised Premises becomes unfit for occupation and use by the Lessee, then in such event the Lease Rent hereby reserved shall be suspended until the Demised Premises is rendered fit for occupation and use provided that in the event the Demised Premises cannot be occupied by the Lessee within a period of 3 (Three) months of the occurrence of such event, then in such case, either Party may terminate this Agreement by giving the other 7 (seven) days’ notice in writing.

12. Termination

  1. Neither Party shall be entitled to terminate this Agreement at any time during the Lease Term, save and except as specified in Clauses 4 and 11 above or in Clauses 12.2 to 12.3 below. 
  1. The Lessee shall be entitled to terminate this Agreement at any time during the Lease Term if the Lessor commits a material breach of any of the terms and conditions of this Agreement. Without prejudice to the generality of the foregoing, the following shall be deemed to be a material breach of the terms and conditions of this Agreement:
  1. If the Lessor commits a material breach of any of the terms and conditions of this Agreement at any time and fails to remedy such breach within a period of 45 (Forty-Five) days of receiving notice of such breach from the Lessee;
  1. In the event, the Lessee is unable to use and/or occupy the Demised Premises due to any defect in the title of the Lessor.
  1. The Lessor shall be entitled to terminate this Agreement only if: 
  1. The Lessee commits a material breach of any of the terms and conditions of this Agreement at any time and fails to remedy such breach within a period of 45 (Forty-Five) days of receiving notice of such breach from the Lessor.
  1. The Lessee fails to make payment of the Lease Rent for 3 (Three) consecutive months.

13. Indemnity

The Parties are aware that it is on the faith of the representations and covenants by the other Party herein that the Parties have agreed to this lease of the Demised Premises. Accordingly, each Party does hereby indemnify, defend and keep harmless and agree to keep indemnified, defended, and harmless the Lessee of, from and against any and all claims, expenses, losses, damages, charges, demands, actions, and liabilities whatsoever arising due to any misrepresentation and/or breach of the terms and conditions of this Agreement on the part of the other Party including (a) costs of setting-up and /or relocation incurred/ to be incurred by the Lessee including pursuant to the admission of insolvency of the Lessor, and (b) losses in the nature of arrears of Lease Rent payable to the Lessor including pursuant to the admission of insolvency of the Lessee.

14. Waiver

  1. Any term or condition of the Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of that Party waiving such term or condition.  
  1. No waiver by any party of any term or condition of the Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition of the Agreement on any future occasion. 
  1. Neither the failure by either Party to insist on any occasion upon the performance of the terms, conditions, and provisions of the Agreement or any obligation hereunder nor time or other indulgence granted by a Party to the other Party shall be treated or deemed as waiver/breach of any terms, conditions or provisions of the Agreement.
  1. All remedies either under the Agreement or under any Applicable Law or otherwise afforded, will be cumulative and not alternative.

15. Severability

Each and every obligation under the Agreement shall be treated as a separate obligation and shall be severally enforceable as such and in the event of any obligation or obligations being or becoming unenforceable in whole or in part. To the extent that any provision or provisions of the Agreement are unenforceable, they shall be deemed to be deleted from the Agreement, and any such deletion shall not affect the enforceability of the remainder of the Agreement not so deleted provided the fundamental terms of the Agreement are not altered. Any invalid or unenforceable provision of the Agreement shall be replaced with a provision, which is valid and enforceable and most nearly reflects the original intent of the invalid and unenforceable provision.

16. Further Assurances

Each Party covenants and agrees that, subsequent to the execution and delivery of this Agreement and without any additional consideration, each Party shall execute and deliver any further legal instruments and perform any acts that are or may become necessary to effectuate the purposes of this Agreement.

17. Entire Agreement

The Parties hereto acknowledge, declare and confirm that this Agreement represents the entire agreement between them regarding the subject matter hereof and no alterations, additions, or modifications hereto shall be valid and binding unless the same is reduced in writing and signed by both the Parties and stamped and registered according to law.

18. Notice

  1. Unless otherwise stated, all notices, approvals, instructions, demands and other communications given or made under this Agreement shall be in English and in writing and shall be given by email, by personal delivery or by sending the same by pre-paid registered mail addressed to the relevant Party at its address set out below and shall be deemed to be duly given or made when delivered (in the case of personal delivery), when dispatched and when valid return receipt is received from the recipient in cases of electronic mail or 3 (Three) Business Days after being dispatched by a recognized courier (in the case of a letter) and upon expiry of 3 (Three) Business Days after being dispatched in case of pre-paid registered mail.
  1. All notices and communications shall be sent to the appropriate address set forth below (or such other address as the addressee has by 7 (Seven) days’ prior written notice specified to the other Parties). 
Lessor:
[Lessor Mailing Address]
Lessee:
[Lessee Mailing Address]

19. Jurisdiction and Governing Law

This Agreement shall be subject to the exclusive jurisdiction of the courts at [State] and shall be governed by the laws of India.

20. Advocate's Fees

Parties shall bear and pay their respective Advocates’ fees.

21. Stamp Duty and Registration

  1. Upon execution of this Agreement, both the Parties shall attend the concerned Office of the Sub-Registrar of Assurances and admit execution of this Agreement at a date and time mutually agreed to between the Parties. 
  1. The Parties agree to take requisite steps and provide co-operation to each other as may be required to register this Agreement with the relevant Rent Authority appointed under the Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017 within 90 days from the Execution Date.  
  1. Stamp duty and registration charges as applicable to this Agreement (and the counterpart thereof) shall be borne by the Lessee.

22. Execution and Counterparts

This Agreement has been executed in duplicate and each counterpart shall be the original of the other. The original Lease Agreement shall be retained by the Lessee and the counter part of such Agreement shall be kept by the Lessor for his / her / its records.

The First Schedule

(Description of the Land)
[Description of Land]
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The Second Schedule

(Description of the Demised Premises)
[Description of the Demised Premises]
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2x
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The Third Schedule

(List and Description of the Amenities)
The Lessor provides the following amenities (the "Amenities") in working condition:
  1. [List of Amenities]
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Acceptance and Signature

Lessor
Lessee
Signature
Assign signer 1
Name
Assign signer 1
Date
Assign signer 1
Signature
Assign signer 2
Name
Assign signer 2
Date
Assign signer 2
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2x
3x
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