THIS AGREEMENT EFFECTIVE the ___ day of ____________, ________.
LESSOR, a corporation duly incorporated under the laws of __________________ and
having an office at __________________ (hereinafter referred to as the “Lessor”)
OF THE FIRST PART
- and -
LESSEE, a corporation duly incorporated under the laws of __________________ and
having an office at __________________ (hereinafter referred to as the “Lessee”)
OF THE SECOND PART
The parties hereto agree as follows:
1. PROPERTY AND TERM
The Lessor hereby leases to the Lessee the following equipment, machinery, personal property and
accessories all as enumerated in Schedule “A” attached hereto (the “Property”).
This Lease shall become effective commencing on the ___ day of ____________, ________, (the
“Commencement Date”) and shall continue for a term of ______ years from such Commencement Date
unless renewed as may be provided herein.
2. RECEIPT OF THE PROPERTY
The Lessee acknowledges due receipt of the Property at the Lessee’s business premises, being
_______________________ (the “Location”)
3. RENTAL RATE
The Lessee shall pay a monthly rental to the Lessor at ________________ or such other place as the Lessor
may from time to time designate, for the use of the Property in the amount of $__________ on the first day
of each and every month, including the Commencement Date, and continuing for the term of this Lease
and any renewal thereof.
4. USE OF PROPERTY
The Lessee will obey all laws in using the Property and will not use or permit the use of the Property
other than at the Location or at other places specifically approved of in writing by the Lessor.
The Lessee shall not sublet or otherwise dispose of the Property. This Lease may not be assigned without
the prior written consent of the Lessor, which consent shall not be unreasonably withheld.
It is expressly understood that this is an Agreement of Lease only, and that the Lessee acquires no right,
title or interest in or to the Property other than the right to the possession and use of the same in
accordance with the terms of this Lease. Any identification tags attached to the Property by the Lessor
shall not be removed.
6. COST OF USE
The Lessee shall bear the entire cost of using the Property during the term of this Agreement.
7. MAINTENANCE, INSPECTION AND SERVICE
The Lessee agrees to exercise due and proper care in the use and maintenance of the Property and to keep
the Property in a good state of repair. Except for normal wear and tear, the Lessee will be responsible for
all damage to the Property resulting from misuse, or negligence. The Lessee will return the Property at
the end of this Lease or whenever required under the conditions of this Lease, in good condition and
repair with no excessive wear and tear.
The Lessor shall have the right to enter the Lessee’s premises to inspect the Property upon reasonable
notice and at reasonable times and with a minimum of interference with the Lessee’s operation. If the
Lessor’s inspection reveals that the Property or any part thereof is being or has been improperly used,
repaired, or maintained, then the Lessor may service or repair the same or may retain the services of
others to service and repair the same as needed and such expense shall be paid by the Lessee forthwith. In
the event that the Lessor advances the costs of such service or repair, the Lessee shall immediately, on
demand, reimburse the Lessor and the failure by the Lessee to do so shall constitute a breach of this Lease
within the meaning of Article 12.
Any work so performed by the Lessor in the service or maintenance of the Property as the result of the
Lessee’s failure or neglect to do so shall not deprive the Lessor of any of its rights, remedies, or actions
against the Lessee for damages resulting from such failure or neglect.
The Lessor hereby shall pay all personal property taxes, if any, levied against the Property covered
hereby. Any other taxes, levies, rates or charges based on this Agreement or the use of the Property
covered hereby, except taxes based on the Lessor’s net income, shall be paid by the Lessee.
9. WARRANTY AND BREAKDOWN
It is understood that the Lessor has made no guaranty or warranty regarding the Property as to design,
material,, workmanship, merchantability or fitness of the Property from any manufacturer. The Lessee
represents and acknowledges that it has selected the Property listed therein to suit its own needs. The
Lessor shall not be responsible for any loss of time or any other loss resulting from any breakdown or
other failure of the Property. It is also understood that there shall be no abatement of rental during any
period of breakdown or non-use of the leased Property.
10. ACCIDENTS AND INSURANCE
The Lessee shall obtain and maintain for the entire term of this Agreement, at its own expense, property
damage and liability insurance and insurance against loss or damage to the Property including, without
limitation, loss by fire (including so-called extended coverage), theft, collision and such other risks of loss
as are customarily insured by “all risks” policies on the type of Property leased hereunder and by the
business in which the Lessee is engaged, in such amounts, in such form and with such insurers as shall be
satisfactory to the Lessor, provided ho