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 months due 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 equipment may 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 whether in 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 accordance with 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 be located 13 Purchase Option Lessee has the option to purchase the equipment during the term of the lease upon payment of of rental payments shall be credited toward the purchase price and 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 Reserved
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