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Vehicle Lease

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This is an agreement between two parties for the lease of a vehicle. This agreement provides for the vehicle’s specifications, term of the lease, deposit amount, lease payments, termination, warranties, and insurance. The agreement contains both standard clauses and opportunities for the use of optional terms and conditions making it fully customizable to fit the needs of the contracting parties. This agreement can be used by individuals or entities that want to enter into a vehicle lease.

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									This is an agreement between two parties for the lease of a vehicle. This agreement
provides for the vehicle’s specifications, term of the lease, deposit amount, lease
payments, termination, warranties, and insurance. The agreement contains both
standard clauses and opportunities for the use of optional terms and conditions making
it fully customizable to fit the needs of the contracting parties. This agreement can be
used by individuals or entities that want to enter into a vehicle lease.
                                     VEHICLE LEASE
    1.    Lessee Name and Address: _______ [Instruction: Insert name of party leasing
         vehicle.] (hereinafter referred to as the “Lessee”).
    2.   Lessor Name and Address: _____ [Instruction: Insert name of party who is leasing to
         Lessee.] (hereinafter referred to as the “Lessor”).
    3.   Creditor in this lease is: _____ [Instruction: Insert name of party providing credit.]
         (hereinafter referred to as the “Creditor”).
    4.   The vehicle described in this lease is as follows: _____ [Instruction: Insert description
         of the vehicle being leased, including make, model, color, mileage at delivery, vehicle
         usage and VIN number.] (hereinafter referred to as the “Vehicle”).
    5.   This agreement, entered into this __ day of _____, 20__ [Instruction: Insert lease date.]
         for the lease of the Vehicle shall hereinafter be referred to as the Lease.

         WHEREAS, Lessor is the fee owner of the Vehicle; and

       WHEREAS, Lessor desires to lease the Vehicle to Lessee upon the terms and conditions
as contained herein; and

       WHEREAS, Lessee desires to lease the Vehicle from Lessor on the terms and conditions
as contained herein;

       NOW, THEREFORE, for and in consideration of the covenants and obligations
    contained herein and other good and valuable consideration, the receipt and sufficiency of
    which is hereby acknowledged, the parties hereto hereby agree as follows:

    By signing, Lessee (including any co-Lessee) agrees to lease this vehicle according to the
    terms of this lease.

    1. The amount due at lease signing or delivery is as follows: _____ [Instruction: Insert
       itemized amount due. Parties may wish to further break this down into categories
       such as capitalized cost reduction, first monthly payment, refundable security
       deposit, title fees, registration fees, etc.]. This amount shall be payable as follows:
       _____ [Instruction: Insert itemized manner of payment, including applicable
       amounts payable in net-trade in allowances, rebate and/or non-cash credits, cash,
       etc.].
           a. Optional language: Lessee hereby acknowledges and agrees that any security
              deposit paid hereunder may be used by Creditor to pay any and all amounts owed
              by Lessee hereunder which Lessee fails to pay. Further, Lessee hereby
              acknowledges and agrees that it shall not receive any interest on any such security
              deposit. Upon the termination of this Lease according to its terms, and upon

© Copyright 2012 Docstoc Inc.                                                          2
                Lessee’s payment of all amounts due hereunder and performance of all
                obligations set forth herein, such security deposit shall be refunded to Lessee
                within thirty (30) days of the aforementioned lease termination.

    2. Lessee’s first monthly payment of $___ United States Dollars is due on _____.
       Subsequent monthly payments of $___ United States Dollars are due on the __ day of
       each month for a total of __ months. Lessee’s total monthly payments are: $ ____ United
       States Dollars. [Instruction Insert applicable term information.]
           a. The parties agree the monthly payment was calculated based on the following
               items, which are set forth more particularly on Schedule A: gross capitalized cost;
               capitalized cost reduction; adjusted capitalized cost; residual value; depreciation
               and amortized amounts; rent charges; number of lease payments; monthly
               sales/use tax, and other amounts as set forth in greater detail.
           b. Gross capitalized cost shall include the following amounts: agreed upon Vehicle
               value, sales/use taxers and other applicable taxes, title fees, license and
               registration fees, extended warranty and service contract, lessor services,
               acquisition fee, documentation fee, life insurance premium and disability
               insurance premiums.
           c. The estimated total amount to be paid by Lessee for official and license fees,
               registration, title and taxes over the Lease term, whether included within Lessee’s
               monthly payments or otherwise are: $_____. [Instruction: Insert estimated
               official fees.] The actual total of such fees and taxes may be higher or lower than
               this estimated total depending on the tax rates in effect or the value of the leased
               property at the time any such fee or tax is assessed.

    3. Any scheduled payment which is not received by the ___ [Instruction: Insert date by
       which payment must be received.] day of the month in which it is due shall be deemed
       late. Lessee shall pay a late charge for each such payment of ____. [Instruction: Insert
       late payment charge, whether a flat fee or a percentage of the total payment and
       indicate such.]

    4. In the event Lessee does not purchase the Vehicle in this manner set forth in this Lease,
       Lessee shall pay a disposition fee of $ _____ [Instruction Insert applicable term
       information.] United States Dollars at the termination of this Lease.

    5. This Lease shall terminate upon (a) the end of the term as defined herein and (b) the
       return of the Vehicle as set forth herein to Lessor, and (c) the payment by Lessee of all
       amounts owed pursuant to this Lease. Lessee hereby acknowledges and agrees that
       Creditor may cancel this Lease in the event of Lessee’s default.



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    6. Lessee hereby acknowledges and agrees that in the event Lessee terminates this Lease
       except as otherwise set forth herein, Lessee may be subject to early termination fees.

    7. Lessee hereby acknowledges and agrees that Lessee may be charged for excessive wear
       and tear to the Vehicle based upon standards of normal use. Lessee acknowledges and
       agrees the following standards will be applicable for determining unreasonable or excess
       wear and tear to the Vehicle: _____ [Instruction: Insert wear and tear standards.].
       Further, Lessee acknowledges and agrees it shall be responsible for repairs of all damages
       which are not a result of normal wear and tear. Repairs which are hereby deemed non-
       normal wear and tear damage include but are not limited to tires which are unmatched,
       unsafe or have less than 1/8 inch of remaining tread in any place; electrical or mechanical
       defects or malfunctions; gloss, paint, body panels, trim and grill work that are broken,
       mismatched, chipped, scratched, pitted, cracked or if applicable dented or rusted; interior
       rips, stains, burns or worn areas; and all damage which would be covered by collision or
       comprehensive insurance whether or not such insurance is actually in force.

        These repairs shall also include but are not limited to those necessary to return the
        Vehicle to any pre-accident condition, and any such repairs must be made with original
        manufacturer parts or those of equal quality. If such repairs are not made prior to
        returning the Vehicle at the schedule Lease termination, Lessee will pay the estimated
        cost of such repairs, even if the repairs are not made prior to any subsequent sale of the
        Vehicle.

    8. Lessee hereby acknowledges and agrees that if it does not purchase the Vehicle upon
       Lease termination as set forth herein, Lessee shall return the Vehicle to Lessor unless
       Creditor specifies another location. If Lessee fails to return the Vehicle, Lessee must
       continue to pay the monthly payments PLUS other damage to creditor, including any
       amounts payable pursuant to any default provisions set forth herein. Payment of any
       such amounts shall not permit Lessee to continue to retain the Vehicle.

    9. At the end of the Lease, unless Lessee purchases the Vehicle, Lessee shall pay to Lessor
       ___ cents per mile in excess of ____ miles shown on the odometer. [Instruction Insert
       applicable term information.] Optional Language: At the scheduled Lease
       termination, Lessee will receive a credit of ___ cents per unused mile for the number
       of unused miles between ___ and ___ miles, less any amounts Lessee owes pursuant
       to this Lease. Lessee will not receive any credit if the Vehicle is destroyed, if the
       Lease is subject to early termination, if any purchase option is exercised, if Lessee is
       in default or if the credit is less than $1.00.




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    10. Lessee, if not in default, shall have the option, upon the termination of this Lease, to
        purchase the Vehicle from Lessor in cash for the purchase price of $____ [Instruction:
        Insert price.] United States Dollars, which price shall not include any applicable official
        fees and/or taxes which may be due. [Optional: The parties may revise this in the event
        Lessee shall not be permitted to purchase the Vehicle upon Lease termination.]

    11. Lessee shall be responsible to obtain and maintain insurance on the Vehicle during the
        term of this Lease, in an amount and manner acceptable to Creditor, and sufficient to
        protect Lessee and Creditor. LESSEE HEREBY ACKNOWLEDGES AND AGREES
        THAT NEITHER LESSOR NOR CREDITOR IS PROVIDING VEHICLE
        INSURANCE OR LIABILITY INSURANCE PURSUANT TO THIS LEASE. Such
        insurance shall include but not be limited to (a) comprehensive fire and theft insurance
        with a maximum deductible of $1,000, and (b) automobile liability insurance with
        minimum limits for bodily injury or death of $25,000 for any one person and $50,000 for
        any one accident, and $10,000 for property damage, unless the jurisdiction in which the
        Vehicle is registered or titled establishes or charges greater minimum automobile liability
        insurance limits than those previously listed. In any such instance, Lessee must insure
        the Vehicle and the Creditor at the higher minimum limits established by such
        jurisdiction. Lessee will list the loss payee and additional insured as requested by Lessor,
        and must provide Creditor with proof of such insurance.

        Lessee authorized Creditor, on its behalf, to receive and endorse checks or drafts, and
        settle or release any and all claims under the insurance related to Creditor’s ownership of
        the Vehicle. Lessee also assigns to Creditor any other insurance proceeds related to this
        Lease or Creditor’s interest in the Vehicle.

        If Lessee or Creditor obtains a refund for any amounts paid to third parties for insurance,
        service contracts or any other amounts paid to a third party included in the gross
        capitalized cost of this Lease, Lessee must pay to Creditor the entire amount of the refund
        and Lessee authorizes the Creditor to subtract the refund from the amount owed by
        Lessee under this Lease.

        If Lessee titles or registers the Vehicle in, or changes the garage location to a jurisdiction
        where Creditor has established minimum automobile liability limits greater than those
        listed above for bodily injury or death and property damage insurance, Lessee must
        insure the Vehicle and the Creditor at the higher minimum limits established by Creditor.

        Optional language: Lessee is hereby advised life insurance and disability insurance
        coverage is not required to enter into this Lease and will not be provided.



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    12. Lessee shall not use or permit others to use the Vehicle in violation of any applicable law
        or contrary to the provisions of any insurance policy covering the Vehicle or outside the
        jurisdiction where the Vehicle was first titled or registered by Lessee for more than thirty
        (30) days without Creditor’s written consent or as a private or public carrier or in any
        manner which would invalidate any applicable warranty. Lessee will keep the Vehicle
        and Lease free and clear of all liens and/or encumbrances. Lessee shall not assign or
        sublease the Vehicle or this Lease without Creditor’s prior written consent.

        Upon execution of this Lease, Lessor will assign same to Creditor, which creditor or its
        assignee will administer this Lease. Lessee must then pay all amounts due under this
        Lease to such Creditor. In the event such rights and obligations to administer are
        assigned to any assignee, such assignee shall have the power to act as Creditor’s behalf to
        administer, enforce and defend this Lease. If Lessor has agreed to repair or maintain the
        Vehicle, obtain any insurance or perform any other services, Lessee will look only to the
        Lessor for these services.

    13. Lessee shall be responsible for proper Vehicle maintenance. Lessee must maintain
        service and maintain the Vehicle at its sole cost and expense, except to the extent any
        such service and maintenance is covered by applicable manufacturer warranty. Any such
        service and maintenance must use parts and materials meeting or exceeding manufacturer
        specifications, including those noted in the owner’s manual and maintenance schedule.
        Lessee shall be responsible for documenting any and all such maintenance performed and
        necessary repairs made to the Vehicle. Lessee shall also be responsible at its sole cost
        and expense for the operating costs of the Vehicle, such as gas and oil. Lessee is hereby
        advised manufacturer may invalidate warranty coverage on parts affected by a failure to
        maintain the Vehicle as required pursuant to manufacturer specifications.

    14. The Vehicle is covered by the following warranty: _____ [Instruction: Insert warranty
        to be provided. If lengthy, same may be attached as an additional schedule.] If the
        Vehicle is of a type normally used for personal use and the Lessor, or the Vehicle’s
        manufacturer, extends written warranty or service contract covering the Vehicle within
        ninety (90) days from the date of the execution of this Lease, Lessee shall receive implied
        warranties of merchantability and fitness for a particular purpose covering the Vehicle.
        Otherwise, Lessee understands and agrees that no such implied warranties shall be
        applicable except as otherwise required pursuant to applicable law.

    15. Lessee shall promptly pay all fees, charges and taxes relating to the Lease or Vehicle
        (except for any other party to this Lease’s income taxes). Lessee will pay such amounts
        even in the event they are assessed upon or after the termination of this Lease.



© Copyright 2012 Docstoc Inc.                                                            6
    16. During the term of this Lease, the Vehicle will remain titled in the name of Creditor.
        Lessee will register the Vehicle as directed by Creditor and will pay any and all
        applicable licensing, title and registration costs and fees, at Lessee’s sole cost and
        expense.

    17. By executing this Lease, Lessee expressly authorizes Creditor to obtain consumer credit
        reports from consumer reporting agencies for any reason and at any time during the term
        of this Lease in connection with this Lease. Lessee hereby waives any further notice,
        agreement or acknowledgement of any such credit report being obtained.

    18. Lessee will indemnify and hold harmless Lessor, Creditor and their assigns from any loss
        or damage to the Vehicle and its contents and from all claims, losses, injuries, expenses
        and costs related to the use, maintenance, or condition of the Vehicle. Lessee will
        promptly pay all fines and tickets imposed upon the Vehicle or its driver. If Lessee does
        not pay as set forth herein, Lessee will reimburse Creditor and pay a $20.00
        administration fee, unless such fee is prohibited by applicable law, for every such fine,
        ticket or penalty that must be paid on Lessee’s behalf.

    19. In the event the Vehicle is stolen or destroyed, Lessee will apply to creditor (a) the
        unpaid adjusted capitalized cost plus (b) all other amounts then due under this Lease,
        minus (c) any insurance proceeds received by Creditor. Notwithstanding the fact that this
        Vehicle is insured, Lessee shall remain responsible for all scheduled amounts due
        pursuant to this Lease until Creditor receives the amount noted above.

    20. Lessee will be in default if (a) Lessee fails to make any payment when due or (b) a
        bankruptcy petition is filed by or for Lessee, or (c) any governmental authority seizes the
        Vehicle and does not promptly or unconditionally release the Vehicle to Lessee or (d)
        Lessee has provided false or misleading material information when applying for this
        Lease, or (e) Lessee fails to maintain any other agreement in this Lease.

        If Lessee is in default, Creditor may cancel this Lease, take back the Vehicle and sell it at
        a public or private sale. Lessee also gives Creditor the right to go on Lessee’s property to
        peacefully retake the Vehicle. Even if Creditor retakes the Vehicle, Lessee must still pay
        at once (a) the difference, if any, between the unpaid adjusted capitalized cost and the
        value which could be realized at the sale of the Vehicle plus (b) all other amounts then
        due under this Lease. The value which could be realized at the sale of the Vehicle at
        Lessee’s option will be (a) the net amount received by Creditor upon the Vehicle sale at
        wholesale, or (b) as determined by a professional appraisal obtained by Lessee at its sole
        cost and expense within ten (10) days from default, from an independent third party
        agreeable to Creditor. Lessee must also pay all expenses, including reasonable attorney’s


© Copyright 2012 Docstoc Inc.                                                            7
        fees, payable by Creditor to obtain, hold and sell the vehicle, collect amounts due and
        enforce Creditor’s rights pursuant to this Lease. Lessee authorizes Creditor to cancel
        Lessee’s insurance and apply any proceeds to any and/or all obligations pursuant to this
        Lease.

    21. If Lessee is not in default, Lessee may terminate this lease early by returning the Vehicle
        to Lessor and paying the following: (a) an early termination fee of $200.00 plus (b) the
        difference, if any, between the unpaid adjusted capitalized cost and the Vehicle’s fair
        market value plus (c) all other amounts then due and owing under this Lease. Lessee will
        never pay more than the sum of the remaining unpaid lease payments, plus any excess
        wear and use and mileage charges, and all other amounts then due under this Lease.

        If Lessee is not in default, Lessee may purchase the Vehicle from Lessor at any time for
        the sum of the remaining payments, less any unearned rent charges, if any, plus the
        purchase option price and all other amounts then due under this lease.

    22. Federal law requires Lessee to complete a statement of the Vehicle’s mileage upon the
        termination of this Lease.

    23. This Lease sets forth all of the agreements between Lessor and Lessee for the Vehicle
        Lease. There is no other agreement, written or oral with respect to same. Any change to
        this Lease must be in writing and signed by Lessee and Creditor.

    24. Lessee hereby acknowledges and agrees that Lessor and/or Creditor may reserve any
        legally permissible security interest in the Vehicle to secure performance of Lessee’s
        obligations pursuant to this Lease.

    26. Except as otherwise provided by applicable law in the jurisdiction where Lessee resides,
        this Lease shall be subject to the laws of the jurisdiction of Lessor’s principal place of
        business, as set forth in this Lease. If any provision of this Lease or the application
        thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the
        remainder of this Lease nor the application of the provision to other persons, entities or
        circumstances shall be affected thereby, but instead shall be enforced to the maximum
        extent permitted by law.

    25. The covenants, obligations and conditions herein contained shall be binding on and inure
        to the benefit of the heirs, legal representatives, and assigns of the parties hereto.

    26. The descriptive headings used herein are for convenience of reference only and they are
        not intended to have any effect whatsoever in determining the rights or obligations of the
        Lessee, Lessor, or Creditor.



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    27. The pronouns used herein shall include, where appropriate, either gender or both,
        singular and plural.

    28. No indulgence, waiver, election or non-election by Creditor or Lessor under this
        Agreement shall affect Lessee's duties and liabilities hereunder.

[Comment: Please note, this document DOES NOT contain a mandatory arbitration
provision. If parties wish to add one, same may be included.]

NOTICE: DO NOT EXECUTE THIS LEASE BEFORE YOU HAVE READ IT IN ITS
ENTIREY OR IF IT HAS ANY BLANK SPACES TO BE FILLED IN. YOU DO HAVE A
RIGHT TO RECEIVE A COMPLETED COPY OF THIS LEASE. BY EXECUTING
BELOW, YOU HEREBY STATE YOU HAVE BEEN GIVEN A COMPLETED COPY
AT THE TIME YOU EXECUTED THIS LEASE. YOU FURTHER ACKNOWLEDGE
YOU HAVE RECEIVED NOTICE OF AN ASSIGNMENT OF THIS LEASE BY THE
LESSOR TO CREDITOR.

______________
Lessee

______________
Lessor



Lessor is hereby notified that Creditor has assigned to an intermediary its rights (but not its
obligations) with respect to the purchase of this Vehicle and the sale of this Vehicle at Lease
termination.

______________
Lessor

______________
Lessee




© Copyright 2012 Docstoc Inc.                                                           9
                                Schedule A




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