A sublease agreement is a new lease entered into between the tenant and the subtenant. It is subordinate to the primary lease previously entered into between the lessor and the lessee. The resulting layers of leases for the same premises can cause difficulties for the parties involved. This document establishes the principal terms of such a transaction.

This sublease agreement template can be used when a lessee wishes to terminate a lease, in whole or in part, before its expiry, because the lessor will nevertheless be entitled to continue collecting rent until the end of the lease. It is important to note that the lessee will be solely responsible for finding a subtenant that is approved by the lessor. The lessee and subtenant will be solidarily liable for the leased premises.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Breach
0.01.04 Building
0.01.05 Change in Control
0.01.06 Confidential Information
0.01.07 Event of Default
0.01.08 Force Majeure
0.01.09 Fundamental Provisions
0.01.10 Immovable
0.01.11 Intellectual Property
0.01.12 Law
0.01.13 Lease
0.01.14 Legal Representatives
0.01.15 PARTY
0.01.16 Payable Rent
0.01.17 Person
0.01.18 Related Person
0.01.19 Subleased Premises
0.01.20 Subsidiary
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-Compliance
a) Severability
b) Substitute Provision
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 No Waiver
0.04.03 Time Limits
a) Time of the Essence
b) Computation of Time
c) Delays
0.04.04 Financial References
0.04.05 Cross-References
0.04.06 Gender and Number
0.04.07 Headings
0.04.08 Presumptions
0.04.09 Knowledge
0.04.10 Approval
0.04.11 Accounting Standards
1.00 PURPOSE
1.01 Sublease
1.02 Conditions
1.02.01 Required by LESSEE
1.02.02 Required by SUBLESSEE
1.02.03 Election
2.00 CONSIDERATION
3.00 TERMS OF PAYMENT
4.00 SECURITY
4.01 Movable Hypothec With Delivery
4.02 Movable Hypothec Without Delivery
4.03 Suretyship
4.03.01 Undertaking
4.03.02 Solidary Liability
4.03.03 Waiver
4.03.04 Presumption
4.03.05 Scope
4.03.06 Jurisdiction
4.04 Irrevocable Letter of Credit
4.05 Consent of LESSOR
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
5.10 Legal Proceedings
5.11 Declaration of Intent
5.12 Other Promises, Representations or Declarations
5.13 Repair of Subleased Premises
6.00 REPRESENTATIONS AND WARRANTIES OF LESSEE
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Canadian Resident
6.05 Commission
6.06 Insurance
6.07 Nominee
6.08 Fundamental Provisions
6.09 Disclosure
6.10 Legal Proceedings
6.11 Quiet Enjoyment
6.12 Compliance with Lease
7.00 REPRESENTATIONS AND WARRANTIES OF SUBLESSEE
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Canadian Resident
7.05 Commission
7.06 Insurance
7.07 Nominee
7.08 Fundamental Provisions
7.09 Disclosure
7.10 Legal Proceedings
7.11 Knowledge of Lease
7.12 Compliance
7.13 Condition of Subleased Premises
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Indemnification
8.02.01 “Loss”
8.02.02 Scope
8.02.03 Procedure
8.02.04 Deductible
8.02.05 Limitation on Claims
8.03 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF LESSEE
9.01 Suretyship
9.02 Fitting the Premises
9.03 Release of Subleased Premises
10.00 DUTIES AND OBLIGATIONS OF SUBLESSEE
10.01 Undertaking to be Bound by Lease
10.02 Leasehold Improvements
10.03 Use of Subleased Premises
10.04 Drafting Fees
11.00 SPECIAL PROVISIONS
11.01 Registration
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Personal Information Regarding SUBLESSEE
11.03.01 LESSOR’s Rights
11.03.02 Obtaining
11.03.03 Communicating
11.03.04 Acknowledgement
11.03.05 Storing
11.03.06 Consulting
11.04 Further Assurances
11.05 Remedies
11.05.01 Election
11.05.02 No Limitations
11.06 Prescriptive Period
11.07 Pre-Incorporation Agreement
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
a) Notice
b) Reply
c) Appointment of a Third Arbitrator
d) Confidentiality
e) Hearing
f) Ruling
g) Costs
h) Supplementary Rules
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 No Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
14.00 EFFECTIVE DATE
15.00 DURATION
16.00 SCOPE


SCHEDULE A – EXCERPT OF A RESOLUTION OF LESSEE
SCHEDULE B – EXCERPT OF A RESOLUTION OF SUBLESSEE
SCHEDULE 0.01.13 – LEASE
SCHEDULE 0.01.19 – SUBLEASED PREMISES
SCHEDULE 4.02 – MOVABLE HYPOTHEC WITHOUT DELIVERY
SCHEDULE 4.03 – INTERVENTION OF SURETY
SCHEDULE 4.03.01 – INTERVENTION OF SURETY
SCHEDULE 4.04 – IRREVOCABLE LETTER OF CREDIT
SCHEDULE 4.05 – CONSENT OF LESSOR