Alabama Equipment Lease Agreement

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Alabama Equipment Lease Agreement Powered By Docstoc
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                               EQUIPMENT LEASE (ALABAMA)
THIS AGREEMENT made effective as of the _____ day of ______________, _______.

BETWEEN:

                                           [NAME OF LESSOR]
                                                 [address]
                                             (the “Lessor”)

                                                 - and -

                                           [NAME OF LESSEE]
                                                [address]
                                             (the “Lessee”)

THIS AGREEMENT made effective as of the _____[##] day of ______________[MONTH],
_______[YEAR] between [LessorFULL LEGAL NAME OF LESSOR] (the ““Lessor””), with a head office
address / branch office at [LESSOR ADDRESS] and [LesseeFULL LEGAL NAME OF LESSEE] (the
““Lessee””), with a principal place of business at [LESSEE ADDRESS].

NOW THEREFORE Lessor hereby agrees to lease to and Lessee hereby agrees to lease from Lessor the
personal property described in the attached Schedule ““A”” (the ““Equipment””), which is incorporated
herein by reference, upon the following terms and conditions:

1.      NO WARRANTIES BY LESSOR                                                                                 Formatted: Bullets and Numbering

1.       Lessee has selected both the Equipment and the Vendor from whom the Equipment was
purchased (the ““Vendor””). LESSOR MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO ANY
MATTER WHATSOEVER, INCLUDING THE CONDITION OF THE EQUIPMENT, ITS
MERCHANTABILITY, OR ITS FITNESS FOR ANY PARTICULAR PURPOSE, and as to Lessor, Lessee
leases the Equipment ““AS IS””.

        CLAIMS AGAINST VENDOR                                                                                   Formatted: Bullets and Numbering

2.      If the Equipment is not properly installed, does not operate as represented or warranted by
Vendor, or is unsatisfactory for any reason, Lessee shall make any claim solely against Vendor, but shall
continue to pay Lessor all rent payable under this Lease. Lessor shall require, as a condition of its
purchase order, Vendor’s agreement that all warranties, agreements, and representations, if any, made by
Vendor to Lessee or to Lessor may be enforced by Lessee in its own name. Lessor hereby agrees to and
does hereby assign to Lessee, solely for the purpose of making and prosecuting any claim, all of the rights
that Lessor has against the Vendor for breach of warranty or other representation with respect to the
Equipment.

        VENDOR NOT AN AGENT                                                                                     Formatted: Bullets and Numbering

3.      Lessee understands and acknowledges that neither Vendor, nor any employee or other agent of
Vendor, is an agent of Lessor. No employee or agent of Vendor is authorized to waive or alter any term
or condition of this Lease, and no representation as to the Equipment or any other matter by Vendor shall
in any way affect Lessee’s duty to pay the rent and perform its other obligations as set forth in this Lease.
                                                      -2-


2.      NO CANCELLATION OF LEASE; RENT ADJUSTMENT                                                              Formatted: Bullets and Numbering

2.1      4.      This Lease cannot be cancelled or terminated except as expressly provided by its terms or
as otherwise agreed to by the parties in writing. Lessee acknowledges that Monthly Rent and other
calculations set forth on Schedule ““A”” are estimates only. Lessee agrees that if the actual cost to Lessor
of purchasingleasing the Equipment, including transportation, installation, taxes, and other expenses
(including reasonable legal fees associated with the preparation of documents necessary to consummate
this transaction), differs from the total equipment cost shown in Schedule ““A””, then the Rent and other
calculations set forth on Schedule ““A”” shall be adjusted proportionately as appropriate, and the Lessor
shall prepare and deliver to Lessee an amended Schedule ““A”” setting forth the same. Lessee agrees to
execute any such Amended Schedule ““A”” tendered by Lessor which reasonably sets forth the
respective changes.

2.2      5.     If the Lessor’’s actual cost of purchasingleasing the equipment, or any part of that cost,
differs from the total equipment cost initially shown on Schedule ““A”” by more than ten[NUMBER IN
WRITING] percent (10[##]%), Lessor or Lessee, at its option, may terminate this Lease. The option to
terminate shall be exercised by giving written notice to the other party within ten[NUMBER IN
WRITING] days (10[##]) of the date of notice of the final purchase price by Vendor.

3.      RIGHT TO LEASE                                                                                         Formatted: Bullets and Numbering

LESSOR WARRANTS THAT LESSOR HAS THE RIGHT TO LEASE THE EQUIPMENT, AS PROVIDED
IN THIS LEASE.

4.      ORDERING EQUIPMENTDELIVERY                                                                             Formatted: Bullets and Numbering

6.      Lessor shall order the Equipment from the Vendor on the terms and conditions of the purchase
order initiated by Lessee with Vendor, provided, however, that such purchase order shall be conditioned
upon delivery of the Equipment within thirty (30) days of the date of this Lease Agreement. Lessee shall
arrange for the delivery of the Equipment, t at Lessee’s expense, so that it can be accepted in accordance
with Paragraph 6 of this Lease within thirty[NUMBER IN WRITING] (30[##]) days after the date of this
Lease Agreement. If delivery of the Equipment cannot be obtained within thirty[NUMBER IN WRITING]
(30[##]) days of the date of the Lease Agreement, either Lessor or Lessee may terminate this Lease
Agreement upon ten[NUMBER IN WRITING] (10[##]) days written notice. If required, Lessee authorizes
Lessor to insert into Schedule ““A”” the serial numbers and other identification marks of Equipment
when they are determined by Lessor.

5.      ACCEPTANCE                                                                                             Formatted: Bullets and Numbering

5.1     7.      On Lessor’’s request, Lessee shall give Lessor a written statement :

(a)     (a) acknowledging receipt of the Equipment in good condition and repair;, and                          Formatted: Bullets and Numbering


(b)     (b) accepting it as satisfactory in all respects for the purposes of this Lease.                       Formatted: Bullets and Numbering



5.2     8.      The date of receipt and acceptance of the Equipment by Lessee shall be the Delivery Date
as described herein and in Schedule ““A””. Notwithstanding whether or not Lessee has given Lessor a
written statement as described above, Lessee shall, by making the first Rent payment after delivery of the
Equipment, be deemed to have acknowledged receipt and acceptance of the Equipment. The Rent
Commencement Date shall be that date which is five[NUMBER IN WRITING] (5[##]) days after the
Delivery Date. Lessor is authorized to enter the Delivery Date and Rent Commencement Date on
Schedule ““A””.
                                                   -3-



6.      TERM                                                                                                  Formatted: Bullets and Numbering

9.      The term of this Lease shall commence on the date of this Lease and continue for the period set
forth in Schedule ““A”” unless otherwise sooner terminated by the provisions of this Lease or as
otherwise agreed to in writing by the parties hereto.

7.      RENT AND DEPOSIT                                                                                      Formatted: Bullets and Numbering

7.1      10.    Lessee shall make the Rent payments described in Schedule ““A””, without demand,
beginning on the Rent Commencement Date (as set forth in Schedule ““A””); all subsequent payments
shall be due on the same day of each month thereafter. All Rent shall be paid to Lessor at its address set
forth above or as otherwise directed by Lessor in writing.

7.2     Lessee shall pay a deposit of [NUMBER IN WRITING] Dollars ($[#,###.##]) prior to taking
possession of the Equipment. The deposit will be refunded to Lessor within [NUMBER IN WRITING]
({##]) days following Lessee’s performance of all obligations in this Lease.

8.      RENEWAL                                                                                               Formatted: Bullets and Numbering

11.     Lessee shall have the option to renew this Lease (the ““Renewal Option””) on the same terms and
conditions from year to year for a maximum additional period as set forth in Schedule ““A””. Lessee
must give Lessor written notice of its intention to exercise this option at least ninety[NUMBER IN
WRITING] (90[##]) days before expiration of the initial Lease term.

9.      MONTH TO MONTH LEASE                                                                                  Formatted: Bullets and Numbering

12.     Should Lessee fail to notify Lessor of its intent to exercise the Renewal Option, or fail to return
the Equipment in accordance with the provisions hereof, the term shall be extended on a month-to-month
basis until either:

(a) (a) Lessee provides thirty[NUMBER IN WRITING] ([##]30) days notice of and returns the Equipment           Formatted: Bullets and Numbering
    to Lessor;, or

(b) (b) Lessor terminates the Lease on thirty[NUMBER IN WRITING] (30[##]) days’’ written notice to            Formatted: Bullets and Numbering
    Lessee. If this Lease is extended on a month-to-month basis, Lessee shall continue to pay Lessor
    Monthly Rent as shown in Schedule ““A”” and each and every obligation hereunder shall continue
    fully in effect vis-a-vis the parties hereto.

10.     LOCATION, INSPECTION, LABELS                                                                          Formatted: Bullets and Numbering

13.      The Equipment is located at and shall not be removed from the location(s) set out on
Schedule “”A””, without Lessor’’s prior written consent, [provided however, that nothing shall preclude
the Lessee from transporting the equipment to and from one or more of Lessee’’s job sites.] Lessor shall
have the right to inspect the Equipment at any time upon reasonable prior notice to Lessee. If Lessor
decides, at its option, to supply Lessee with labels stating that the Equipment is owned by Lessor, Lessee
shall affix the labels to the Equipment in a prominent place, and the labels shall not be removed from the
Equipment without the written consent of Lessor.

11.     REPAIRS, USE, ALTERATION                                                                              Formatted: Bullets and Numbering

11.1   14.      Lessee, at its own expense, shall keep and maintain the Equipment in good condition and
working order, and shall not materially alter the Equipment without Lessor’’s prior written consent.
                                                     -4-



11.2   15.      In the event the Equipment requires repairs, title to all additions, substitutions, and/or
replacements to the Equipment shall remain in Lessor, notwithstanding the fact that any such
replacement, repair or substitution of parts or equipment will be at the cost and expense of Lessee.

11.3   16.      Lessor shall not be liable for any loss of profits or other consequential damages or any
inconvenience resulting from theft, destruction or disrepair of the Equipment, down time of the
Equipment due to such theft, destruction or disrepair, or the time required to recover, service or repair
the same. Lessee further agrees to indemnify Lessor against any and all claims, demands, losses, expenses
or cause of action, including legal expenses, court costs and attorney fees arising from the use,
maintenance, repair, and operation of the Equipment.

11.4   17.     The Equipment shall at no time be subjected to any overloading or any purpose other
than that for which the same was designed. Any repair, replacement or substitution of parts or
equipment due to overloading or misuse of the Equipment will be at the sole cost and expense of Lessee.

11.5     18.     With respect to any vehicle forming part of the Equipment, Lessee shall permit only safe,
careful, qualified, authorized, and insured drivers to operate such vehicle. Any and all fines or penalties
imposed by any governmental authority upon such vehicle or any driver thereof shall be paid by Lessee.
Lessee shall comply with all applicable laws, rules, regulations and ordinances in using and operating
such vehicle and every other part of the Equipment.

12.     SURRENDER                                                                                                Formatted: Bullets and Numbering

19.      Upon expiration of the term of this Lease, or upon demand by Lessor pursuant to the provisions
hereof, Lessee, at its expense, shall return the Equipment by delivering it to the place, specified by Lessor,
in the same condition as when delivered to Lessee, reasonable wear and tear excepted.

13.     LOSS OR DAMAGE                                                                                           Formatted: Bullets and Numbering

13.1    20.     Lessee shall bear the entire risk of loss, theft, destruction, or damage (““Loss or
Damage””) of the Equipment from any cause whatsoever. No Loss or Damage shall relieve Lessee of the
obligation to pay Rent or of any other obligation under this Lease. If Loss or Damage occurs, Lessor at its
option may require Lessee to perform any one of the following options:

(a)     to repair and restore the Equipment in good condition;                                                   Formatted: Bullets and Numbering




(b)     tto replace the Equipment with like equipment in good condition with clear title in Lessor; or           Formatted: Bullets and Numbering


(c)     to pay Lessor the total of the following amounts:                                                        Formatted: Bullets and Numbering


        (i)
                the total Rent and other obligations of Lessee to Lessor hereunder due and
        to pay to Lessor the total of the following amounts:                                                     Formatted: Bullets and Numbering


                the total Rent and other obligations of Lessee to Lessor hereunder due and owing at the
                time of the payment; plus

        (ii)    the amount estimated by Lessor to be the present value of all Rent and other amounts             Formatted: Bullets and Numbering
                payable by Lessee for the Equipment from date of the payment to date of expiration of
                                                   -5-


                the then current term of the Lease, (calculated at a              [NUMBER           IN
                WRITING] percent (       [##]%) per year simple interest discount), but excepting
                therefrom any amounts which would not actually be incurred by either party by virtue of
                the non-existence of the equipment (e.g. personal property tax); plus

        (iii)   the fair market value of the Equipment, as set forth in Schedule ““A””, less a reasonable
                monthly allowance for depreciation should the Initial Term of the Lease have already
                run.

13.2     21.     After Lessee has complied with the conditions set forth above, Lessee shall then be
entitled to receive and retain all insurance payments made because of the Loss or Damage of the
Equipment. Lessee, Lessee’’s insurer, or both shall then be entitled to Lessor’’s interest in the Equipment
for salvage purposes, in its then condition and location, AS IS, without warranty, express or implied, and
Lessor agrees to execute any reasonable documentation necessary to evidence such transfer.

14.     INSURANCE                                                                                             Formatted: Bullets and Numbering

14.1    22.     Lessee shall provide, pay for, and maintain the following:

(a)     insurance against the loss, theft of, or damage to the Equipment, for its full replacement value,     Formatted: Bullets and Numbering
        and

        (b)     public liability and                                                                          Formatted: Bullets and Numbering


public liability and property damage insurance in an amount not less than One Million[NUMBER IN
        WRITING] Dollars ($[#,###,###.##1,000,000]).

14.2    23.     All insurance shall be in a form and with companies acceptable to Lessor, and shall
contain the insurer’’s agreement to give ten[NUMBER IN WRITING] (10[##]) days’’ written notice to
Lessor before cancellation or material change of any policy of insurance. On Lessor’’s request, Lessee
shall deliver the policies, copies of the policies, or certificates of insurance to Lessee. Lessor shall be
named as an additional insured on all such insurance policies.

14.3    24.     Lessee specifically agrees to hold Lessor harmless from and indemnify Lessor against any
loss or casualty which for any reason shall not be covered by any policy of insurance hereinabove
mentioned, and expressly agrees to pay forthwith the amount of any deductible applicable to any such
casualty or loss. Lessee further agrees that Lessee’’s obligation to make payments when due shall be
unaffected by the fact that Lessee or Lessor has an insurance claim under disability or any other kind of
insurance.

15.     TAXES                                                                                                 Formatted: Bullets and Numbering

25.     As directed by Lessor, Lessee shall pay all charges and taxes (local, state, and federal) which may
now or hereafter be imposed or levied upon the sale, purchase, ownership, leasing, possession, or use of
the Equipment, excluding, however, all taxe
				
DOCUMENT INFO
Description: Lease equipment to customers with this easy-to-use Equipment Lease Agreement for the State of Alabama. - The lessee has an option to renew the lease, but the lease becomes a month-to-month rental contract if the lessee fails to renew when the initial term expires. - The lessee has an option to purchase the equipment at the end of the lease term. - The lessee is responsible for obtaining insurance and paying any taxes due on the equipment and/or the lease. - The lessee is also responsible for maintenance, upkeep and repairs to the equipment during the lease term. This Alabama Equipment Lease Agreement template is available in MS Word format and is fully customizable.
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