Lease and Buy Agreement

______________________, referred to as the LEASING COMPANY, and ______________________, referred to as the CUSTOMER, hereby agree as follows:

Leased Equipment

The CUSTOMER agrees to lease from the LEASING COMPANY the following equipment:

_____________________________________________________________

The LEASING COMPANY shall act as the CUSTOMER’S agent for the purpose of purchasing the above-mentioned equipment. The LEASING COMPANY makes no warranties, express or implied, regarding the equipment. Any applicable warranties shall be solely those provided by the original manufacturers or sellers of the equipment.

Location of Equipment

The leased equipment shall be located at:

_________________________________________________________________

The equipment may not be relocated without the prior written consent of the LEASING COMPANY.

Expenses and Delivery

All expenses related to delivery, installation, and any applicable taxes shall be paid directly by the CUSTOMER to the respective service providers.

Insurance Requirements

The CUSTOMER shall obtain and maintain, at their own expense, insurance coverage for the leased equipment. The policy must include broad form coverage through a licensed insurer authorized to operate in the State of ________, and must be acceptable to the LEASING COMPANY. Such approval shall not be unreasonably withheld.

Lease Payments

In consideration of the lease, the CUSTOMER agrees to pay the LEASING COMPANY a total amount of $____ (_______________ & ___/100 dollars), payable in ____ installments due on ______________, with the first payment due on __________________.

If the CUSTOMER fails to make any scheduled payment or violates any terms of this agreement, the LEASING COMPANY may declare the full remaining balance immediately due and payable. All taxes and levies on the equipment shall be the responsibility of the CUSTOMER.

Late Payment Penalty

Any payment not made within ten (10) days of the due date shall incur a late fee equal to 5% of the overdue amount.

Default and Repossession

In the event of default, the LEASING COMPANY may repossess the leased equipment and is authorized to enter the CUSTOMER’s premises for this purpose.

Purchase Option

At the end of the lease term, provided all payments have been made, the CUSTOMER shall have the option to purchase the equipment for the amount of $________ (______________ & ___/100 dollars). If the CUSTOMER does not exercise this option, they must return the equipment, at their own expense, to the LEASING COMPANY.

Maintenance Responsibility

The CUSTOMER shall be solely responsible for maintaining the leased equipment and ensuring that it remains in good working condition.

Collection Costs

In case of default, the CUSTOMER agrees to pay all reasonable costs incurred by the LEASING COMPANY for the enforcement of this agreement, including attorney’s fees and collection expenses.

Relocation of Equipment

The CUSTOMER shall not move the leased equipment from its designated location without obtaining prior written approval from the LEASING COMPANY.

Execution of Additional Documents

The CUSTOMER agrees to sign financing statements and any other documents reasonably required by the LEASING COMPANY to protect its interest in the leased equipment.

Dated: _______________________________

_______________________________________
Customer

_______________________________________
Leasing Company

How to Use This Sample Format

This section is provided to explain the purpose of this document and assist in its correct usage. This agreement serves as a lease-to-own arrangement for customers purchasing large equipment or items. It functions as an installment-based lease agreement, where the CUSTOMER gains ownership at the end of the term by completing all payments. The straightforward format of the agreement makes it appealing to potential buyers.

The agreement includes terms covering repossession, late payment penalties, and recovery costs in the event of non-compliance.

1. Prepare multiple signed copies. Each party should retain one copy. Maintain one original in the related records or files.