EQUIPMENT LEASE This agreement is made between , of , hereinafter referred to as "lessor," and corporation having its principal place of business at hereinafter referred to as "lessee." 1. Equipment. For and in consideration of the covenants and agreements hereinafter contained, lessor has leased to lessee the personal property known and described as follows: (hereinafter referred to as "equipment") for the period of months commencing from the day of and upon the conditions and agreements hereinafter stipulated. 2. Repossession. Retaking possession of the equipment, pursuant to the provisions of this contract, shall not prejudice lessors' right or claim for rents and payments due hereunder. 3. Return of equipment. At the end of the term, lessee shall return the equipment freight prepaid to lessor at the place from which equipment was shipped in as good condition as it existed at the commencement of the term, reasonable wear and tear excepted. 4. Rent. Lessee shall pay as rent for the leasing the sum of Dollars ($) per month for monthsdue the day of each month, commencing on . 5. Default. If lessee shall default in paying any rent due; or if any execution or other writ or process shall be issued in any action or proceeding against lessee, whereby the equipmentmay be seized or taken or detained; or if a proceeding in bankruptcy, receivership, or insolvency shall be instituted by or against lessee or his property; of if lessee shall enter into any arrangement or composition with its creditors; or if lessee should breach any other term, covenant, or condition of this lease, lessor shall have the right to retake immediate possession of the equipment and for such purpose lessor may enter upon any premises where the equipment may be located, and with or without notice of its intention to retake the same, and without being liable to any suit or action or proceeding by lessee. If any step is taken by legal action or otherwise by lessor to recover possession of equipment or otherwise enforce this agreement or to collect monies due hereunder, lessee shall pay lessor the equivalent of the monies expended or charges incurred by lessor in such behalf, including reasonable attorney's fees. 6. Location. The equipment shall be used only at: , and lessee shall not remove it from said location without the written consent of lessor. 7. Indemnification of lessor. Lessee agrees to protect and hold lessor harmless against any and all losses or damage to equipment by fire, flood, explosion, tornado, or theft. Lessee hereby assumes all liability to any person arising from the location, condition, or use of equipment, and shall indemnify and does indemnify lessor of and from all liability, claim,and demand whatsoever arising from the location, condition, or use of equipment whetherin imperfect or defective equipment, and from every other liability, claim, and demand whatsoever during the term of this lease or arising while equipment is in the possession of lessee. Lessee also agrees to promptly reimburse lessor, in cash, for any and all personal property taxes levied against equipment and paid by lessor. 8. No assignment. Neither this lease nor any right or interest thereunder shall be assigned by lessee in any respect whatsoever. 9. Choice of law. This lease and agreement shall be deemed to have been executed and entered into in the State of and shall be construed, enforced, and performed in accordancewith the laws thereof.10. Exclusion of oral statements. This instrument contains the entire agreement of the parties. No oral or other statements, proposals, or agreements shall be binding on either of the parties. 11. Insurance. Lessee shall at all times during the term of this lease at its expense keep equipment insured to the amount of at least Dollars ($ ) for such risks as lessor shall require, with carriers acceptable to lessor, for lessor's benefit. Lessee will deliver the policies of insurance to lessor. Lessor shall be entitled to receive all insurance proceeds collected under the policies. 12. Inspection by lessor. For the purpose of examining and inspecting the condition of the machinery, lessor may from time to time enter any premises where the machinery may belocated. 13. Purchase Option. Lessee has the option to purchase the equipment during the term of thelease upon payment of $ % of rental payments shall be credited toward the purchase priceand the balance of such purchase price shall be paid in cash. (Lessor's Name) (Lessee's Name) BY: _________________________________ BY: _________________________________ (Name, Title) (Name, Title) Reprinted with permission from the Upstart Small Business Legal Guide by Robert Friedman Copyright © 1998 © 1993 by Dearborn Financial Publishing, Inc.® All Rights
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