Arkansas Equipment Lease Agreement

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Arkansas Equipment Lease Agreement Powered By Docstoc
					                               EQUIPMENT LEASE (ARKANSAS)
THIS AGREEMENT made effective as of the [##] day of [MONTH], [YEAR] between [FULL LEGAL
NAME OF LESSOR] (the “Lessor”), with a head office address / branch office at [LESSOR ADDRESS]
and [FULL 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

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”.

2.      NO CANCELLATION OF LEASE; RENT ADJUSTMENT

2.1      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
leasing 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      If the Lessor’s actual cost of leasing the equipment, or any part of that cost, differs from the total
equipment cost initially shown on Schedule “A” by more than [NUMBER IN WRITING] percent ([##]%),
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 [NUMBER IN WRITING] days ([##]) of the date of notice
of the final purchase price by Vendor.

3.      RIGHT TO LEASE

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

4.      DELIVERY

Lessee shall arrange for the delivery of the Equipment, at Lessee’s expense, within [NUMBER IN
WRITING] ([##]) days after the date of this Lease Agreement. If delivery of the Equipment cannot be
obtained within [NUMBER IN WRITING] ([##]) days of the date of the Lease Agreement, either Lessor or
Lessee may terminate this Lease Agreement upon [NUMBER IN WRITING] ([##]) 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.
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5.      ACCEPTANCE

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

(a)     acknowledging receipt of the Equipment in good condition and repair; and

(b)     accepting it as satisfactory in all respects for the purposes of this Lease.

5.2     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 [NUMBER IN WRITING] ([##]) days after the Delivery
Date. Lessor is authorized to enter the Delivery Date and Rent Commencement Date on Schedule “A”.

6.      TERM

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

7.1     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

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 [NUMBER IN WRITING] ([##])
days before expiration of the initial Lease term.

9.      MONTH TO MONTH LEASE

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) Lessee provides [NUMBER IN WRITING] ([##]) days notice of and returns the Equipment to Lessor;
    or

(b) Lessor terminates the Lease on [NUMBER IN WRITING] ([##]) days’ written notice to 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.
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10.     LOCATION, INSPECTION, LABELS

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

11.1   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.

11.2   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   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    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    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

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

13.1    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;

(b)     to replace the Equipment with like equipment in good condition with clear title in Lessor; or
                                                    -4-


(c)     to pay Lessor the total of the following amounts:

                (i)      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
                payable by Lessee for the Equipment from date of the payment to date of expiration of
                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     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

14.1    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,
        and

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

14.2     All insurance shall be in a form and with companies acceptable to Lessor, and shall contain the
insurer’s agreement to give [NUMBER IN WRITING] ([##]) 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     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

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 taxes on or measured by Lessor’s net income. To the extent that
Lessor pays any such taxes, Lessee agrees to forthwith reimburse Lessor for such payment.
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16.     LIENS

Lessee shall keep the Equipment free and clear of any levies, liens, and encumbrances.

17.     LESSOR’S PAYMENT

If Lessee fails to provide or maintain i
				
DOCUMENT INFO
Description: Lease equipment to customers with this easy-to-use Equipment Lease Agreement for the State of Arkansas. - 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 Arkansas Equipment Lease Agreement template is available in MS Word format and is fully customizable.
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