Lease Agreement #_______
THIS LEASE EFFECTIVE the ___ day of ____________, ________ by and between:
_____________________________ [insert name of leasing company], a corporation duly incorporated under
the laws of the Province of _________________ and having an office at __________________ [insert full
address], Saskatchewan (the “Lessor”) and the customer named below (the “Lessee”):
Lessee Full Legal Name
Head Office Address
City / Prov / Postal Code
Contact Name & Title
Phone & Fax Numbers
IN CONSIDERATION of the mutual covenants and agreements contained in this Lease and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the
parties, the parties hereby agree as follows:
2. Leased Equipment
Lessor hereby leases to Lessee the following equipment, machinery, personal property and accessories all
as enumerated in Schedule “A” attached hereto (the “Equipment”).
3. Term of Lease
This Lease shall become effective commencing on the ___ day of ____________, ________, (the
“Commencement Date”) and shall continue for a term of ______ years.
4. Monthly Rental Fees
Lessee shall pay a monthly rental to Lessor at ________________ [insert address to which payments are to be
made], or such other place as Lessor may from time to time designate, for the use of the Equipment in the
amount of $________________ on the first day of each and every month, including the Commencement
Date, and continuing throughout the Term of this Lease. If the Commencement Date of this Lease is not
the first day of the month, the first month’s rental shall be prorated at the rate of $__________ per day.
Unless Lessee has requested invoices for payment, Lessee authorizes and directs its Bank to:
(a) debit Lessee’s account (the “Account”) for all payments due under this Lease purporting to be
drawn on Lessee for payment to Lessor which are presented for payment by Lessor, and
(b) make all payments to Lessor from the Account.
Such payments may be requested electronically by Lessor, and the Bank is authorized and directed to
treat them as signed by Lessee. Lessee agrees that the Bank shall not be liable for any loss or damage
incurred by Lessee due to honouring this authorization.
Lessee agrees to sign the Pre-Authorized Payment Authorization attached as Schedule “B” to this Lease
and agrees that Lessor may, on its behalf, deliver a copy of Schedule “B” to the Bank for its records.
Lessee’s authorization hereunder may not be revoked without Lessor’s consent.
5. Late Fees and Other Charges
If any payment under this Lease is not made when the same becomes due, Lessee shall pay a late fee of
$___________ for each month or partial month during which such amount remains unpaid, plus interest
at the rate of ____________ percent (___%) per annum, calculated and compounded monthly, and payable
on demand. Lessee also agrees to pay a returned cheque charge of $________, plus GST, payable on
demand for each cheque not honoured by Lessee’s bank for any reason.
The Equipment is and remains the sole property of Lessor at all times, and Lessee acquires no right, title
or interest in or to the Equipment 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 Equipment by Lessor shall not be
removed. Lessee must keep the Equipment free and clear of all liens, charges and claims of any other
person. The Equipment must not be attached to real estate in any way and must remain moveable at all
7. Maintenance and Use
Lessee agrees to use the Equipment for business purposes only. Lessee is responsible for installing the
Equipment and for keeping it in good repair, condition and working order and furnishing all parts and
servicing required. Lessee shall cause the Equipment to be operated carefully by competent and qualified
personnel, and in compliance with the manufacturer’s recommendations and with all applicable laws and
regulations. Lessee may not make any alterations to the Equipment without Lessor’s written consent, and
all alterations shall belong to Lessor.
8. Subletting and Assigning
Lessee may not sell, transfer or assign this Lease, or pledge, hypothecate or otherwise encumber, or part
with possession or control of the Equipment, or any interest in this Lease, without Lessor’s prior written
consent. Lessor may sell, assign or transfer this Lease without notice to Lessee. Lessee agrees that if Lessor
sells, assigns or transfers this Lease, the new owner will have the same rights, benefits and obligations of
Lessor hereunder. Lessee agrees that the rights of the new owner will not be subject to any claims,
defences or setoffs that Lessee may have against Lessor. In the event of assignment or transfer, Lessee
agrees to remain responsible for its obligations under this Lease.
9. Risk of Loss
Lessee shall bear the entire risk of loss, damage, destruction, theft or governmental taking of the
Equipment. If the Equipment is damaged or lost, in whole or in part, Lessee shall promptly notify Lessor,
and must continue to pay the rental fees and pay for the cost of repairs. If the Equipment is destroyed or
damaged beyond repair, lost, stolen or taken from Lessee, Lessee must promptly notify Lessor and must
immediately pay the Liquidated Damages (as hereinafter defined). The Equipment shall remain at
Lessee’s location, and Lessor has the right to inspect the Equipment at any time and to examine Lessee’s
maintenance, insurance and tax records.
10. Net Costs
All costs relating to the Equipment’s use, maintenance or possession shall be borne by Lessee, including
all taxes and charges arising in connection with the registration or use of the Equipment. The rental fees
and other amounts payable shall be absolutely net to Lessor, free of all expenses. If Lessee fails to perform
any of its obligations hereunder, Lessor shall have the right, as Lessee’s lawful attorney or otherwise, to
perform such obligations on Lessee’s behalf, and Lessee must reimburse Lessor on demand for its costs of
doing so. Lessee must pay, when due, all taxes (other than Lessor’s income taxes) and other charges
imposed by any taxation authority with respect to the ownership, possession, use, maintenance, operation
or lease of the Equipment. Lessee acknowledges that the amount of taxes payable in respect of rental
payments are stipulated by the applicable taxing authorities and, as such, may vary from time to time
from any such amounts indicated in this Lease.
11. No Warranties
Lessor is leasing the Equipment to Lessee “AS IS”. LESSOR MAKES NO REPRESENTATIONS OR
WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING WARRANTIES OF
MERCHANTABILITY, CONDITION, DESIGN, OPERATION, QUALITY OR FITNESS OF USE FOR
ANY PURPOSE. All warranties of the manufacturer or supplier in respect of the Equipment are
transferred to Lessee, to the extent that the same are transferable. In the event the Equipment is returned
by Lessee or repossessed by Lessor, all such warranties shall be deemed to have been transferred back to
Lessor. Lessee agrees to claim only against the manufacturer or supplier under such warranties.
Lessee agrees to provide and maintain at its expense, at all times during the Term of this Lease:
(a) comprehensive all risks, full replacement value insurance on the Equipment naming Lessor as
first loss payee; and
(b) general public liability and property damage insurance, naming Lessor as additional insured and
providing coverage of at least One Million Dollars ($1,000,00) or higher coverage if Lessor
All insurance policies must be with a company acceptable to Lessor and must provide that the insurer
give Lessor at least thirty (30) days written notice before altering or terminating the coverage. Lessee
shall, at Lessor’s request, provide Lessor with certificates or other evidence of insurance satisfactory to
If Lessee fails to obtain insurance as set out in this Section, Lessor shall have the right, but not the
obligation, to obtain such insurance, and Lessee shall promptly pay all costs thereof.
13. No Liability; Indemnity of Lessor
LESSOR SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY DAMAGES, INCLUDING
WITHOUT LIMITATION, ANY PERSONAL INJURY, PROPERTY DAMAGES, LOSS OF BUSINESS,
OR INCIDENTAL OR CONSEQUENTIAL DAMAGES CAUSED BY OR RELATED TO THE
EQUIPMENT, ITS MANUFACTURE, INSTALLATION, FUNCTIONING OR OPERATION. Lessee
agrees to indemnify Lessor against and protect Lessor from all loss, costs, liabilities, claims, legal
proceedings and expenses arising in connection with this Lease; the Equipment; the manufacture,
selection, purchase, ownership, delivery, installation, possession, use, maintenance, loss or return of the
Equipment; taxes; the Equipment’s infringement of any patent, industrial or intellectual property right;
any default; or the exercise by Lessor of its rights hereunder.
Lessee shall be in default under this Lease if:
(a) Lessee fails to pay any rental payment or other amount due under this Lease within ten (10) days
of its due date;
(b) Lessee fails to perform any of the other terms, obligations or conditions of this Lease;
(c) Lessee becomes insolvent, bankrupt or makes an assignment for the benefit of creditors, or a
receiver, trustee, conservator or liquidator is appointed over all or part of Lessee’s assets;
(d) Lessee disposes of or encumbers the Equipment or this Lease, or attempts to do so;
(e) Lessee makes a representation in this Lease or otherwise to Lessor which is materially incorrect;
(f) if Lessee is a corporation, control or beneficial ownership of its shares or its business changes
from that which existed at the Commencement Date;
(g) a writ, execution, attachment or similar process is issued or levied against the Equipment;
(h) Lessee ceases or threatens to cease to carry on business or makes or proposes to make any sale of
all or a substantial portion of its assets in bulk or otherwise out of the normal course of business;
(i) Lessee is in default to Lessor under any other agreement, or any material agreement with any
(j) a guarantor of Lessee’s obligations disputes or attempts to terminate the guarantee or itself
becomes subject to any of the events in subpragraph (c) above;
(k) Lessor in good faith believes and has commercially reasonable grounds for believing that Lessee’s
prospect of paying the rental payments or performing its obligations hereunder is or is about to
be impaired or placed in jeopardy.
If Lessee is in default, then in addition to Lessor’s other rights under this Lease or otherwise at law:
(a) Lessee must pay Lessor, as Liquidated Damages and not as a penalty, the total of (i) all amounts
then due and unpaid, including rental payments, and (ii) the present value (calculated using a
discount rate of ___ percent (___%) per annum, compounded monthly) of the remaining rental
(b) upon demand, Lessee must return the Equipment to Lessor;
(c) Lessor may, immediately and without notice or legal action, take possession of the Equipment;
(d) all Lessee’s rights in respect of the Equipment shall cease and terminate absolutely; and
(e) Lessor may, by notice in writing, terminate this Lease.
All Lessor’s rights, either under this Lease or at law or equity, are cumulative and not alternative. Lessee
shall pay on demand all costs and expenses (including costs of collection, legal fees, repossession,
Equipment repair, rights enforcement, Equipment disposition and other realization costs) which Lessor
may incur due to Lessee’s default. All amounts payable under this Section will bear interest at the rate set
out in Section 5 (Late Fees and Other Charges).
After Lessee’s default, Lessor may sell, reassign, or otherwise dispose of the Equipment at public or
private sale with or without notice to Lessee, and upon such terms and in such manner as Lessor may
determine. Lessee will be liable for any deficiency after the disposition proceeds are applied to the
Liquidated Damages. To the extent permitted by law, LESSEE WAIVES THE BENEFIT OF ALL LAWS
WHICH WOULD LIMIT LESSOR’S RIGHTS, including (if Lessee is a corporation) its rights under The
Limitation of Civil Rights Act (Saskatchewan), as amended.
15. Termination by Lessee
Lessee cannot cancel or terminate this Lease.
16. End of Term or Renewal