Sample Equipment Lease Agreement
This contract agreement for Equipment Lease (“Lease”) between _____________ (the “Lessor”) and _____________ (“Lessee”) is made and entered into upon the following date: ____/____/____ with an expiration date of ____/____/____. The following described equipment shall be Leased by Lessor to Lessee:__________________________________.
1. The monthly rent for the Equipment will be paid in installments in advance for $_____ per month, starting on ____/____/____, followed by a payment on the first day of each succeeding month for the duration of this Lease Agreement. Any installment payment that is not made and received by the tenth day of the month will be considered overdue and Lessor may charge a late fee equal to one percent per month on any overdue amount. If there is rent due for a partial month it will be prorated accordingly.
2. The Lessee will pay a security deposit of $_____ prior to taking possession of the Equipment. Following the Lessee meeting all the obligations of this Lease the security deposit will be refunded in full.
3. The Lessee will use the Equipment in a reasonable and proper manner and will comply with all Federal, State and County laws and regulations relating to the use and maintenance of the Equipment.
4. All other warranties, explicit or implied, including but not limited to merchantability and fitness for a particular use the Lessor disclaims, except that the Lessor has the complete right to lease the Equipment as described above.
5. Lessee, at his or her own expense, will keep the Equipment in good repair, condition and working order and will provide all parts and devices that are required to maintain the Equipment in good mechanical working order.
6. The Lessee assumes and will bear the entire risk of loss and damage to the Equipment from any and all causes whatsoever. No loss or damage to the Equipment or any part thereof will the Lessee not be responsible for under the terms of this Lease Agreement which is in full effect and force until the expiration date stated above has been reached. In the event that there is loss or damage to Equipment of any kind, Lessee will at Lessor’s option: Place the Equipment in good repair, condition and working order or replace the Equipment with the same in good repair and working condition or pay the Lessor the full replacement cost of the Equipment.
7. Following the expiration or earlier termination of this Lease, Lessee will return the Equipment to Lessor in good repair, condition and working order, while ordinary wear and tear that results from proper use will be excepted, Lessee shall deliver the Equipment at Lessee’s cost to a place designated by Lessor within the county in which the Equipment was delivered to Lessee.
8. The Lessee shall continuously maintain and pay for all risk insurance against the loss of and damage to the Equipment for nothing less than the full replacement cost of the Equipment and naming the Lessor as the loss payee. Along with public liability and property damage insurance with the limits approved by Lessor and naming the Lessor as named insured and loss payee. The purchased insurance will be with a company that is reasonably acceptable to Lessor. Lessee will provide to Lessor at least a thirty day advance written notice of any cancellation, change or modification and will provide primary coverage for the protection of Lessee and Lessor without any consideration of any additional coverage that may be carried by Lessor for protection against similar risks. Lessee will provide Lessor with an original copy of the policy or certificate as evidence for the purchase of previously discussed required Equipment insurance. Lessee hereby appoints Lessor as Lessee’s attorney with power and authority to make any claims, receive payments and endorsing any documents, checks and or drafts that are necessary to secure payments that are due under the above required insurance policy.
9. Lessee will keep the Equipment clear and free from all liens and levies of any kind whatsoever. Lessee, or Lessor at Lessee’s expense, will report, pay and discharge when due all license and registration fees, assessments, sales, and property taxes, along with gross receipts, taxes arising out of receipts from the use or operation of the Equipment, and other taxes, fees and governmental charges that are similar or dissimilar to the foregoing, together with any penalties or interest that is imposed by any Federal, State or Local government or any agency or department upon the Equipment. However, the Lessee is not required to pay for any tax or assessment as long as it does not affect or endanger the title and interest of Lessor to the Equipment disclosed above. Lessee will reimburse Lessor for any and all damages or expenses resulting from failure to pay the above mentioned fees.
10. If Lessee fails to maintain the previously discussed insurance policy or to pay fees, assessments, charges and taxes all previously specified in this Lease, Lessor has the right to pay any fees that are due. In such an event the cost will be repayable to Lessor with the very next payment and any failure to repay the amount due shall carry with it a penalty of ten percent per annum for failure to pay any installment as discussed in this Lease Agreement.
11. Lessee does not hold Lessor liable against any and all claims, actions, suits, and or damages of any kind whatsoever arising out of and connected with or resulting from Lessee’s use of the Equipment.
12. If Lessee does not pay the above mentioned rent installment within ten days after it is due or if the Lessee fails to perform any other provision of the Lease Agreement. Lessor has the right to exercise any one or more of the following: Declare that the entire amount of rent that is due be paid immediately without notice; to take possession of the Equipment without notice wherever it may be located; to terminate this Lease; and or to pursue any other additional remedy that may be reasonable under law or in equity. Lessee hereby waives any and all damages that may be incurred by Lessee for taking possession of Equipment and due to Lessee not fulfilling the obligations of this Lease.
13. Neither this Lease nor anything related to this Lease is assignable or transferable by any operation of law. If Lessee is determined to be insolvent, or if a writ of attachment or execution is levied on the Equipment and is not released or paid within ten days or if a receiver is appointed to take possession or control of the Equipment, then the Lessor may exercise any one of the following remedies that are set forth in Section 12 of this Lease Agreement and this Lease at the option of the Lessor without prior notice may be terminated and the Equipment will not be treated as an asset of the Lessee after Lease termination.
14. The above mentioned equipment is and will always be and remain the sole and exclusive property of the Lessor. The Lessee does not have any right, title and or interest to the Equipment except as described in this Lease.
15. If the Lessor requests any documents that are necessary to protect the interest of the Lessor in the operation of the Equipment then the Lessee will provide the needed documents.
16. The Lessee will not assign the Equipment Lease Agreement for the above mentioned Equipment without the prior written consent of the Lessor.
17. If there is any part of this Agreement that is not valid it will not cause any other part to be invalid or unenforceable.
This contract shall be governed by the laws of the State of __________ in __________ County and any applicable Federal Law.
Signature of Lessee
Signature of Lessor
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