Agreement to Lease Equipment - Warranty

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Agreement to Lease Equipment - Warranty Powered By Docstoc
					This is an agreement to lease equipment pursuant to the specific terms and conditions
as negotiated by the parties. This agreement contains indemnification, rent, and
disclaimer clauses and also contains a warranty as to the equipment. This long-form
document 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 form is useful to individuals or businesses seeking to lease equipment with
a warranty.
                AGREEMENT TO LEASE EQUIPMENT (WITH WARRANTY)

THIS AGREEMENT TO LEASE EQUIPMENT ("Lease Agreement") is made and effective
on       ______     [Month]      ____      [Date],     20____     [Year],        by    and       between
_____________________________ [Instruction: Insert the name of the person owning the
equipment/lessor], located at __________________________________________ [Instruction:
Insert    the     address   of   the    Lessor]   (hereinafter   referred   to    as   "Lessor")    and
_______________________________ [Instruction: Insert the name of Lessee], located at
__________________________________ [Instruction: Insert the address of the Lessee]
(hereinafter referred to as "Lessee"). Lessor and Lessee may be individually referred to as
“Party” and collectively as “Parties”.

WHEREAS, the Lessor is the sole owner of that certain equipment describe in Exhibit A;

WHEREAS, the Lessee wishes to lease the equipment from the Lessor in accordance with the
term of this Agreement;

WHEREAS, each party is duly authorized and capable of entering into this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set
forth, the Parties hereto agree as follows:

1. Lease
     The Lessor agrees to lease to the Lessee, and the Lessee agrees to lease and rent from the
     Lessor, the equipment more fully described in Exhibit A, (the “Equipment”), on the terms
     and conditions of this Agreement.

2. Term and Payment
     See the attached Exhibit B.

3. Shipping [Instruction: choose any one clause from below]
     Lessee shall be responsible for shipping the Equipment to Lessee's premises.

                                                  OR

     Lessor shall be responsible for shipping the Equipment to Lessee's premises.



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4. Use
    Lessee shall use the Equipment in a careful manner, shall make all necessary repairs at
    Lessee's expense, and shall comply with all laws relating to its possession, use or
    maintenance, and shall not make any alterations, additions, or improvements to the
    Equipment without Lessor's prior written consent. All additions, repairs, or improvements
    made to the Equipment shall belong to Lessor.

5. Disclaimer of Warranties and Claims; Limitation of Remedies
    LESSOR, NOT BEING THE MANUFACTURER OF THE EQUIPMENT NOR THE
    MANUFACTURER'S AGENT, MAKES NO EXPRESS OR IMPLIED WARRANTY OF
    ANY KIND WHATSOEVER WITH RESPECT TO THE EQUIPMENT, INCLUDING,
    BUT NOT LIMITED TO, THE MERCHANTABILITY OF THE EQUIPMENT OR ITS
    FITNESS FOR ANY PARTICULAR PURPOSE; THE DESIGN OR CONDITION OF THE
    EQUIPMENT; THE QUALITY OR CAPACITY OF THE EQUIPMENT; THE
    WORKMANSHIP IN THE EQUIPMENT; COMPLIANCE OF THE EQUIPMENT WITH
    THE REQUIREMENT OF ANY LAW, RULE, SPECIFICATION, OR CONTRACT
    PERTAINING THERETO; PATENT INFRINGEMENT; OR LATENT DEFECTS.
    LESSEE LEASES THE EQUIPMENT "AS IS" AND WITH ALL FAULTS. Lessee
    accordingly agrees not to assert any claim whatsoever against Lessor for loss of anticipatory
    profits or consequential damages. Lessor shall have no obligation to install, erect, test,
    service, or maintain the Equipment. Lessee shall look to the manufacturer and/or seller for
    any claims related to the Equipment.

    IF THE EQUIPMENT IS NOT PROPERLY INSTALLED, DOES NOT OPERATE AS
    REPRESENTED OR WARRANTED BY THE SUPPLIER OR MANUFACTURER, OR IS
    UNSATISFACTORY              FOR   ANY   REASON,      REGARDLESS         OF    CAUSE      OR
    CONSEQUENCE, LESSEE'S ONLY REMEDY, IF ANY, SHALL BE AGAINST THE
    SUPPLIER OR MANUFACTURER OF THE EQUIPMENT AND NOT AGAINST
    LESSOR.

    LESSOR HEREBY ACKNOWLEDGES THAT ANY MANUFACTURER'S AND/OR
    SELLER'S WARRANTIES ARE FOR THE BENEFIT OF BOTH LESSOR AND LESSEE.
    NOTWITHSTANDING THE FOREGOING, LESSEE'S OBLIGATIONS TO PAY THE


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    RENTALS OR OTHERWISE UNDER THIS LEASE SHALL BE AND ARE ABSOLUTE
    AND UNCONDITIONAL. TO THE EXTENT PERMITTED BY THE MANUFACTURER
    OR SELLER, AND PROVIDED LESSEE IS NOT IN DEFAULT UNDER THIS LEASE,
    LESSOR SHALL MAKE AVAILABLE TO LESSEE ALL MANUFACTURER AND/OR
    SELLER WARRANTIES WITH RESPECT TO EQUIPMENT.

6. Ownership
    The Equipment is, and shall remain, the property of Lessor, and Lessee shall have no right,
    title, or interest therein or thereto except as expressly set forth in this Lease. The Equipment
    shall remain personal property even if installed in or attached to real property.

7. Surrender
    Lessee acquires no ownership rights in the Equipment and has no option to purchase the
    same. Upon the expiration or termination of this Lease Agreement, or in the event of a
    default pursuant to Paragraph 12 hereof, Lessee, at its expense, shall return the Equipment in
    good condition and shall perform any required repair work; however, it is understood and
    agreed that ordinary wear and tear resulting from proper use thereof alone is expected and
    expectable. Lessor shall deliver the Equipment, packed and ready for shipment, to such place
    or carrier as Lessor may specify.

8. Loss and Damage
    Lessee shall bear the entire risk of loss, theft, damage, or destruction of the Equipment from
    any cause whatsoever, and no loss, theft, damage, or destruction of the Equipment shall
    relieve Lessee of the obligation to pay rent or to comply with any other obligation under this
    Lease.

    In the event of loss or damage of any kind whatsoever to the Equipment, Lessee shall, at
    Lessor's option:

    a) Place the same in good repair, condition, and working order; or
    b) Replace the same with like equipment in good repair, condition, and working order; or
    c) Pay to Lessor the replacement cost of the Equipment.
9. Insurance




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    _________________________________________ [Instruction: Insert Lessor or Lessee or
    Both Parties as applicable] shall have an obligation to obtain, continuously maintain, and
    pay for:

    [Instructions and Comments: There exist no federal including Consumer Leasing Act or
    state laws making mandatory for Lessee or Lessor to maintain any specific insurances.
    However, it is advisable for Lessors to include appropriate insurances from below:]

    a. All risk insurance against loss of and damage to the Equipment for not less than the full
        replacement value of the Equipment, naming _________ [Instruction: Insert Lessor
        legal/entity name to whom the claim from a loss is to be paid] as loss payee, and;
    b. Combined public liability and property damage insurance with limits as approved by
        ________ [Instruction: Insert Lessor or Lessee or them as applicable], naming
        ____________ [Instruction: Insert the other Party or them as applicable] as named
        insured and a loss payee.
    c. Commercial General Liability.
    d. Lessor named as “Additional Insured” with regards to General Liability.
    e. Waiver of Subrogation concerning Workers Compensation
    The insurance shall be in such form and with such company or companies as shall be
    reasonably acceptable to Lessor, shall provide at least ___________ (___) [◊Thirty (30)]
    advance written notice to Lessor of any cancellation, change or modification, and shall
    provide primary coverage for the protection of Lessee and Lessor without regard to any other
    coverage carried by Lessee or Lessor protecting against similar risks. Lessee shall provide
    Lessor with an original policy or certificate evidencing such insurance. Lessee hereby
    appoints Lessor as Lessee's attorney in fact with power and authority to do all things,
    including, but not limited to, making claims, receiving payments and endorsing documents,
    checks, or drafts necessary or advisable to secure payments due under any policy of
    insurance required under this Agreement.

10. Taxes
    Lessee shall keep the Equipment free and clear of all levies, liens and encumbrances. Lessee,
    or Lessor at Lessee's expense, shall report, pay and discharge when due all license and
    registration fees, assessments, sales, use and property taxes, gross receipts, taxes arising out


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    of receipts from use or operation of the Equipment, and other taxes, fees and governmental
    charges similar or dissimilar to the foregoing, together with any penalties or interest thereon,
    imposed by any state, federal or local government or any agency, or department thereof,
    upon the Equipment or the purchase, use, operation, or leasing of the Equipment or otherwise
    in any manner with respect thereto and whether or not the same shall be assessed against or
    in the name of Lessor or Lessee. However, Lessee shall not be required to pay or discharge
    any such tax or assessment so long as it shall, in good faith and by appropriate legal
    proceedings, contest the validity thereof in any reasonable manner which will not affect or
    endanger the title and interest of Lessor to the Equipment; provided, Lessee shall reimburse
    Lessor for any damages or expenses resulting from such failure to pay or discharge.

11. Indemnity
    Lessee shall indemnify Lessor against, and hold Lessor harmless from, any and all claims,
    actions, suits, proceedings, costs, expenses, damages, and liabilities, including reasonable
    attorney's fees and costs, arising out of, connected with, or resulting from Lessee's possession
    or use of the Equipment, including without limitation the manufacture, selection, delivery,
    possession, use, operation, or return of the Equipment. Such indemnification shall survive the
    expiration, cancellation, or termination of this Lease.

12. Default
    If the Lessor or the Lessee is in default under the lease contract, the party seeking
    enforcement may reduce the other party's claim to judgment, or otherwise enforce the lease
    contract by self-help or any available judicial or non-judicial procedure, including
    administrative proceeding, arbitration, or the like.
    By Lessor:
    Lessor shall be in default of this Lease if:
    a. Lessor fails to deliver the Equipment in conformity to the lease contract; or
    b. Repudiates the lease contract.
    By Lessee:

    Lessee shall be in default of this Lease if:

    a. Lessee wrongfully rejects or revokes acceptance of Equipment; or



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    b. Lessee shall fail to make any payment due under the terms of this Lease for a period of
         ___________ (___) [◊ Ten (10)] days from the due date thereof; or
    c. Lessee shall fail to observe, keep, or perform any other provision of this Lease; or
    d. Lessee has made any misleading or false statement in connection with, application for, or
         performance of this Lease; or
    e. The Equipment or any part thereof shall be subject to any lien, levy, seizure, assignment,
         transfer, bulk transfer, encumbrance, application, attachment, execution, sublease, or sale
         without prior written consent of Lessor, or if Lessee shall actually or constructively
         abandon the Equipment or permit any other entity or person to use the Equipment without
         the prior written consent of Lessor, or
    f. Lessee dies or ceases to exist; or
    g.   Any proceeding under the Bankruptcy Act, as amended, is commenced by or against the
         Lessee, or if the Lessee is adjudged insolvent, or if Lessee makes any assignment for the
         benefit of his creditors, or if a writ of attachment or execution is levied on the Equipment
         and is not released or satisfied within a period of ___________ (___) [◊Ten (10)] days
         thereafter, or if a receiver is appointed in any proceeding or action to which the Lessee is
         a party with authority to take possession or control of the Equipment.
13. Remedies
    To Lessor:

    1. If Lessee is in default under the Lease contract the Lessor may:
         a. cancel the lease contract;
         b. proceed respecting Equipment not identified to the lease contract;
         c. withhold delivery of the Equipment and take possession of Equipment previously
            delivered;
         d. stop delivery of the Equipment by any bailee;
         e. dispose of the Equipment and recover damages, or retain the Equipment and recover
            damages, or in a proper case recover rent;
         f. exercise any other rights or pursue any other remedies provided in the lease contract.




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    2. If a Lessor does not fully exercise a right or obtain a remedy to which the Lessor is
        entitled as per the foregoing, the Lessor may recover the loss resulting in the ordinary
        course of events from the Lessee's default as determined in any reasonable manner,
        together with incidental damages, less expenses saved in consequence of the Lessee's
        default.
    3. If a Lessee is otherwise in default under a lease contract, the Lessor may exercise the
        rights and pursue the remedies provided in the lease contract which may include a right to
        cancel the lease.
    To Lessee:


    1. If Lessor is in default under the Lease contract the Lessee may:

        a. cancel the lease contract;

        b. recover so much of the rent and security as has been paid and is just under the
             circumstances;

        c. cover and recover damages as to Equipment affected whether or not it has been
             identified to the lease contract, or recover damages for non delivery;

        d. exercise any other rights or pursue any other remedies provided in the lease contract.

        e.   if the Equipment has been identified, recover it; or

        f. in a proper case, obtain specific performance or replevy the Equipment.

    2. If a Lessor is otherwise in default under a lease contract, the Lessee may exercise the
        rights and pursue the remedies provided in the lease contract, which may include a right
        to cancel the lease.

    3. If a Lessor has breached a warranty, whether express or implied, the Lessee may recover
        damages.

14. Modification




© Copyright 2012 Docstoc Inc.                                                          8
    The parties hereby agree that this document contains the entire agreement between the parties
    and this Agreement shall not be modified, changed, altered, or amended in any way except
    through a written amendment signed by all of the parties hereto.

15. Notice
    Any notice required or permitted under this Lease or under state law shall be deemed
    sufficiently given or served if sent by United States certified mail, return receipt requested,
    addressed as follows:

    If to Lessor to:                          _____________________________________

                                              _____________________________________

                                              _____________________________________

                                              _____________________________________



    If to Lessee to:                          _____________________________________

                                              _____________________________________

                                              _____________________________________

                                              _____________________________________




Lessor and Lessee shall each have the right from time to time to change the place notice is to be
given under this paragraph by written notice thereof to the other party.

16. Validity
    If any provision of this agreement is held to be invalid, such invalidity shall not affect the
    validity or enforceability of any other provision of this agreement.

17. Assignment
    Lessee shall not assign this Lease or its interest in the Equipment without the prior written
    consent of Lessor.


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18. Headings
    Headings used in this Lease are provided for convenience only and shall not be used to
    construe meaning or intent.

19. Governing law
    This Agreement shall be governed, construed and interpreted by, through and under the Laws
    of the State of _____________________.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals as of the
date first here written




______________________________________________

                          [Lessor] Signature




______________________________________________

                          Name of Lessor




______________________________________________

                          [Lessee] Signature




______________________________________________

                          Name of Lessee




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                                          EXHIBIT A

                   [Instruction: Insert description of equipment to be leased]




                                EQUIPMENT DESCRIPTION

Sl.No      Manufacturer              Model                 Quantity              Serial Number

  1             ABC                   K27                     10                      NA




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                                           EXHIBIT B

                           [Instruction: Insert Term and payment plan]

                                         Term and Payment

         Number of              Rental   Lease term         Payable          End of lease
                           amount +      in months                            provision
S.NO       payment                                    __________ Monthly
                            applicant
                                taxes                 __________ Quarterly

                                                       __________ Others




© Copyright 2012 Docstoc Inc.                                                   12

				
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Description: This is an agreement to lease equipment pursuant to the specific terms and conditions as negotiated by the parties. This agreement contains indemnification, rent, and disclaimer clauses and also contains a warranty as to the equipment. This long-form document 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 form is useful to individuals or businesses seeking to lease equipment with a warranty.