EQUIPMENT LEASE AGREEMENT

This Equipment Lease Agreement (“Lease”) is made effective as of [DATE], by and between:

LESSOR:

[LESSOR NAME] (“Lessor”), a corporation organized under the laws of [STATE/PROVINCE], with its principal office located at:

LESSEE:

[LESSEE NAME] (“Lessee”), a corporation organized under the laws of [STATE/PROVINCE], with its principal office located at:
NOW, THEREFORE, in consideration of the mutual covenants herein, the parties agree as follows:

1. LEASE OF EQUIPMENT

Lessor leases to Lessee, and Lessee leases from Lessor, the following equipment (“Equipment”): [Equipment]

2. TERM

The Lease term begins on [Start Date] and continues for [Lease Length] months.

3. SHIPPING

Lessee is responsible for shipping the Equipment to its premises.

4. RENT AND DEPOSIT

4.1 Rent Payments

Lessee shall pay monthly rent of [Installment Amount] in advance, starting on [Date of First Payment] and continuing on the first day of each subsequent month. Payments shall be made to [Address for Payments] or as otherwise designated by Lessor. Late payments (after the 10th day of the month) incur a 1% monthly late fee. Partial-month rent is prorated.

4.2 Deposit

Lessee shall pay a refundable deposit of [Deposit Amount] prior to taking possession. The deposit will be returned after Lessee fulfills all Lease obligations.

5. SECURITY DEPOSIT

Lessor may apply the security deposit to cure any Lessee default. Lessee must promptly restore the deposit to its original amount.

6. CREDIT INFORMATION

Lessee certifies that all submitted credit/financial information is accurate and material to this Lease. Lessor may investigate Lessee’s creditworthiness and share results with prospective creditors.

7. USE OF EQUIPMENT

Lessee shall use the Equipment lawfully, maintain it properly, and comply with all applicable laws. [Other Restrictions]

8. REPAIRS

Lessee shall maintain the Equipment in good working order at its own expense, including all necessary parts and repairs.

9. LOSS AND DAMAGE

Lessee bears all risk of loss, theft, or damage to the Equipment. If damage occurs, Lessee must, at Lessor’s option: – Repair the Equipment; – Replace it with comparable equipment; or – Pay Lessor the full replacement cost.

10. SURRENDER

Upon Lease termination, Lessee shall return the Equipment in good condition (excluding normal wear) to a location specified by Lessor.

11. FILING

Lessee agrees to execute documents for filing/recording this Lease. Lessor may act as Lessee’s attorney-in-fact to perfect liens.

12. LATE PAYMENTS

Late payments beyond [number] days incur a service charge, collection costs, and interest at the maximum legal rate.

13. LOCATION AND MAINTENANCE

Equipment shall remain at the location specified (or Lessee’s billing address) unless moved with Lessor’s written consent. Lessee is solely responsible for maintenance and repairs.

14. INSURANCE

Lessee shall maintain: – All-risk insurance for the Equipment’s full value, naming Lessor as loss payee; – Liability/property damage insurance with Lessor as an additional insured. Policies must be acceptable to Lessor and provide 30 days’ notice of cancellation.

15. TAXES AND LIENS

Lessee shall pay all taxes/fees related to the Equipment and keep it free of liens.

16. LESSOR’S PAYMENT RIGHTS

If Lessee fails to pay insurance/taxes, Lessor may pay them and charge Lessee (due with the next rent payment).

17. TITLE

Equipment remains Lessor’s property. Additions/improvements by Lessee become Lessor’s property.

18. INDEMNITY

Lessee indemnifies Lessor against all claims, costs, or damages arising from Equipment use.

19. DEFAULT

Lessee defaults if: – Rent is unpaid for 10 days; or – Other Lease terms are breached. Lessor may then: – Accelerate all payments; – Repossess Equipment; – Terminate the Lease; or – Pursue legal remedies.

20. WARRANTIES

Lessor provides no warranties. Equipment is leased “AS IS.” Lessee’s sole remedies (if any) lie with the manufacturer/seller.

21. BANKRUPTCY

Lessee bankruptcy or insolvency allows Lessor to terminate the Lease and exercise remedies under Section 19.

22. ASSIGNMENT

Lessee may not assign the Lease or sublet Equipment without Lessor’s consent. Lessor may freely assign its rights.

23. ARBITRATION

Disputes shall be arbitrated under [e.g., American Arbitration Association rules] in [City, State].

24. GOVERNING LAW

This Lease is governed by [State/Province] law.

25. HOW TO USE THIS SAMPLE FORMAT

Headings are for convenience only and do not affect interpretation.

26. ENTIRE AGREEMENT

This Lease constitutes the full agreement between parties, amendable only in writing. Lessee’s liability is joint and several if multiple lessees exist.
IN WITNESS WHEREOF, the parties execute this Lease as of the effective date.

LESSOR
Authorized Signature
Print Name and Title

LESSEE
Authorized Signature
Print Name and Title