This is a lease for tangible property versus real estate or space.
PERSONAL PROPERTY LEASE
This agreement is made and entered into on ______, by and between ______, a[n] ______ [entity of lessor] of ______, ______, ______ ______, referred to as "Lessor" in this agreement, and ______, a[n] ______ [entity of lessee], of ______, ______, ______ ______, referred to as "Lessee" in this agreement.
A. Lessor is the owner of certain personal property more fully described in paragraph 1 below.
B. Lessee wishes to lease from Lessor such personal property on the terms and conditions described herein for use in Lessee's business conducted at the address set forth above.
Therefore, in consideration of the covenants contained here, the legal sufficiency of which is acknowledged by the parties to this agreement, the parties agree that:
1. Lease and Description of Leased Property
Lessee hereby hires from Lessor ______ on the terms and conditions set forth herein.
*[2. Additional or Replacement Equipment
Equipment, in addition to any leased under this lease or to replace any Lessee may have in use, will be furnished to Lessee under this lease, if available, at Lessor's schedule of charges in effect on the date such equipment is installed ready for use. An item of the same type and model furnished as a mechanical replacement for any item leased under this lease shall be furnished at the same monthly rental charge as was in effect for the replaced item.
Additional or nonmechanical replacement equipment to be leased under this lease shall be made subject to this lease upon execution by a duly authorized representative of Lessee and acceptance by Lessor, of either Lessee's purchase order on Lessor or Lessor's form of amendment or a letter agreement. Lessee's purchase order, Lessor's form of amendment, or the letter agreement will state the location of the installation, the type, model, description and monthly rental charge for the equipment to be so leased and billing instructions, if any.
The term of this lease shall be for a period beginning ______, and ending ______.
*[4. Automatic Renewal Until Written Termination
This lease shall remain in force for a period of one year from the date of execution of the lease. Renewal thereafter for annual periods shall be automatic, provided that either party to this lease may terminate it at the end of any annual period by giving the other party [spelled number of days] (______) or more days' notice in writing of the intention to terminate.
]**[5. Option To Renew at Specified Rental
Lessee is given ______ successive options to renew the lease for a [spelled number of years] (______) year period, upon the same terms and conditions of the lease provided, however, the rent during each such renewal period shall be as follows:
payable ______. Such options must be exercised by Lessee's giving of a written notice of renewal to Lessor, not less than [spelled number of days] (______) days before the expiration of the terms of this lease, or any renewal of the lease.
In consideration for the leasing of the above‑described property, Lessee agrees to pay to Lessor, as rent for such property, the total sum of $______, payable in monthly installments as follows: the sum of $______ upon the execution of this lease, receipt of which is acknowledged, in payment of rent for the period from ______ to ______, the sum of $______ on ______, and the sum of $______ on the ______ day of each succeeding month during the term of this lease. Any past due payment of rent shall bear interest at the rate of ______% per annum. All payments subsequent to this lease shall be made at the principal place of business of Lessor at ______, ______, ______ ______, or such other place as shall be designated by written notice from Lessor to Lessee, unless Lessor shall assign this lease or the right to receive the rentals under the lease, in which case rentals shall be paid to Lessor's assignee, if any, after written notice of such assignment has been given to Lessee by Lessor.
*[7. Increased Taxes or Charges
Should any tax or charge imposed by any governmental authority on this transaction, as above shown, increase during the term of this lease, Lessee agrees to pay Lessor on demand the full amount of any such increased taxes or charges.
In consideration for the leasing of the equipment, Lessee agrees to pay rents and royalties to Lessor as follows:
(a) The sum of $______ per month, payable in advance on the ______ day of each month for each machine leased, the rental for each such machine to commence and to be prorated from the date on which Lessee receives notice that such machine is ready for delivery;
(b) The sum of $______ per each ______ manufactured or produced by such machine but not to exceed the sum of $______ per month multiplied by the total number of machines leased. Such sums shall be paid by Lessee to Lessor on or before the ______ day of each month for royalties accrued to the last day of each preceding month. On or before the ______ day of each month, Lessee will give Lessor a written statement of all productions by each machine during the preceding month and will, on Lessor's request, permit the inspection by Lessor's representatives of the machines and of Lessee's books and documents relating to the use of such machines; and
(c) Lessee's liability to pay the rents and royalties provided by this lease shall not during the term of this lease cease or be suspended for any cause whatsoever, except to the extent Lessee's use of any machine is halted by injunction granted by competent court in suit or infringement of patent.
Lessee shall use the property leased in a careful and proper manner and shall comply with all laws, ordinances, and regulations relating to the possession, use, or maintenance of the property. Such property shall be used only for the purpose of ______. If at any time during the term of this lease Lessor supplies Lessee with labels, plates, or other markings stating that the property is owned by Lessor, Lessee shall affix and keep them in a prominent place on the property.
10. Inspection by Lessee
Lessee shall inspect the property within ______ hours after receipt of such property. Unless Lessee within such period of time gives written notice to Lessor specifying any defect in or other proper objection to the property, Lessee agrees that it shall be conclusively presumed, as between Lessor and Lessee, that Lessee has fully inspected and acknowledged that the property is in good condition and repair, and that Lessee is satisfied with and has accepted the property in such good condition and repair.
11. Inspection by Lessor
Lessor shall at all times during business hours have the right to enter on the premises where the property may be located for the purpose of inspecting it or observing its use. Lessee shall give Lessor immediate notice of any attachment or other judicial process affecting any item leased and shall, whenever requested by Lessor, advise Lessor of the exact location of the item.
*[Lessee agrees that it will make no alterations in the leased property without obtaining prior written permission from Lessor.]**[Lessee is given the right to make alterations, additions, or improvements to the property, so long as value of the property is not reduced by such alterations.]* All additions to and improvements of the property of any kind shall immediately become the property of the Lessor and subject to the terms of this lease.
*[13. Maintenance and Repair
Lessee, at its own cost and expense, shall keep the property leased in good repair, condition, and working order, and shall furnish all parts required to keep it in good working order. Lessee shall not remove, alter, disfigure, or cover up any numbering, lettering, or insignia displayed upon the leased property, and shall see that the property is not subjected to careless or needlessly rough usage.
]**[14. Lessor To Provide Maintenance Services
Lessor will be responsible for keeping the equipment in good working order and making all necessary adjustments, parts replacements and repairs. For such purpose, Lessor may use its own maintenance service or that of ______. Lessor, in addition, will provide its preventative maintenance service. Lessor, or when used, ______, shall have full and free access to the equipment during available working hours. Service and maintenance will be furnished from ______ to ______, Mondays through Fridays, except legal holidays. Service and maintenance will be furnished, at Lessee's request and when available, at times other than those specified in the preceding sentence and Lessor shall charge Lessee for such service at Lessor's rates then in effect. The required suitable electric current to operate the equipment and a suitable place of installation with all facilities, both as specified in ______, will be furnished by Lessee.
]*15. Loss and Damage
Lessee assumes all risk of loss of and damage to the property leased from any cause. No loss or damage to the property leased shall impair any obligation of Lessee under this lease, which shall continue in full force and effect. In the event of loss of or damage to the property leased, Lessee at the option of Lessor shall:
(a) Place the property in good repair;
(b) Replace the property with like property in good repair, which property shall then become subject to this lease; or
(c) Pay Lessor in cash the "Stipulated Loss Value" as set forth in Schedule ______ or as in any subsequent schedules which may be made a part of this lease. Upon such payment this lease shall terminate with respect to the property so paid for and Lessee then shall become entitled to the property, as the owner of such property.
16. Return of Leased Property
On expiration or earlier termination of this lease, with respect to the leased property, Lessee shall (unless Lessee has paid Lessor in cash the "Stipulated Loss Value" of the property pursuant to Paragraph [numbering] above) return the property to Lessor in good repair, ordinary wear and tear resulting from proper use of such property alone excepted, in the following manner as may be specified by Lessor:
(a) By delivering property at Lessee's expense to such place as Lessor shall specify within the county in which the property was delivered to Lessee or to which the property was removed with the written consent of Lessor; or
(b) By loading property at Lessee's cost on board such carrier as Lessor shall specify and shipping the property, freight collect, to the destination designated by Lessor.
Such conditions for return of the leased property are subject to Lessee's option to purchase it as set out here.
Lessee, at its own expense, shall maintain the leased property insured for such risks and in such amounts as Lessor shall require with carriers acceptable to Lessor, shall maintain a loss payable endorsement in favor of Lessor affording to Lessor such additional protection as Lessor shall require, and shall maintain liability insurance satisfactory to Lessor. All such insurance shall name Lessor and Lessee as insured. The policies shall provide that they may not be canceled or altered without at least [spelled number of days] (______) days' prior written notice to Lessor, and the loss payable endorsement shall provide that all amounts payable by reason of loss of or damage to the property shall be payable only to Lessor. Lessee shall deliver to Lessor evidence satisfactory to Lessor of all such insurance. If loss or damage occurs under circumstances in which Lessee is not in violation of the terms of any such policies, and if Lessee has fulfilled its obligations under Paragraph [numbering] of this lease, and is not otherwise in default under this lease, Lessor will pay Lessee so much of any insurance proceeds received by Lessor as the result of such loss as will fully reimburse Lessee for the net expense it incurs in fulfilling its obligations under Paragraph [numbering].
18. Taxes and Fees
Lessee shall pay all license fees, assessments, and sales, use, property, and other taxes now or in the future imposed on the leased property by reason of ownership, leasing, renting, sale, possession, or use, whether they be assessed to Lessor or Lessee, together with any penalties or interest in connection with such taxes and fees, except for federal, state, or local governmental taxes, or payments in lieu of such taxes, imposed on or measured by income of the Lessor. If any tax is, by law, to be assessed or billed to Lessor, Lessee at its expense will do anything required to be done by Lessor in connection with the levy, assessment, billing, or payment of such tax, and is authorized by Lessor to act on Lessor's behalf in such respects; Lessee will cause all billings of such taxes to Lessor to be made to Lessor in care of Lessee and will from time to time, on request of Lessor, submit written evidence of the payment of all of the governmental obligations mentioned in this paragraph. Lessee will, on any property tax returns required to be filed by it, include the property covered by this lease or any substitutions or additions to this lease as property owned by the Lessee for purposes of tax assessments. It is expressly agreed that Lessee will not, without obtaining prior written permission of Lessor, assert on its behalf, or on behalf of Lessor, any immunity from taxation based on the tax‑exempt status, if any, of the Lessor.
19. Lessee's Failure To Maintain Insurance or Pay Taxes
Should Lessee fail to make any payment or do any act as provided, in Paragraphs [numbering] or [numbering] of this lease, then Lessor shall have the right, but not the obligation, without notice to or demand on Lessee, and without releasing Lessee from any obligation under this lease, to make or do the same, and to pay, purchase, contest, or compromise any encumbrance, charge, or lien which in the judgment of Lessor appears to affect the leased property, and in exercising any such rights, incur any liability and expend whatever amounts in its discretion it may deem necessary therefor. All expenses so incurred by Lessor shall be without demand immediately due and payable by Lessee and shall bear interest at the rate of ______% per annum thereafter until paid.
Lessee acknowledges that the leased property is of a size, design, capacity, and manufacture selected by Lessee. LESSOR HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATION, WARRANTY, OR COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO THE CONDITION, QUALITY, DURABILITY, SUITABILITY, OR MERCHANTABILITY OF THE LEASED PROPERTY. Lessor will, however, take any steps reasonably within its power to make available to Lessee any manufacturer's or similar warranty applicable to the leased property. Lessor shall not be liable to Lessee for any liability, loss, or damage caused or alleged to be caused directly or indirectly by the leased property by any inadequacy of such property or defect in such property or by any incident in connection with such property.
]**[21. Lessor's Limited Warranty To Maintain Equipment in Good Working Order
Lessor warrants that each item of equipment leased under this lease will be in good working order on the effective date for such item. Lessor shall, in accordance with the terms of this lease, cause to be made all necessary adjustments, repairs, and replacements necessary to maintain the equipment in good working order. All equipment is supplied and maintained subject to this warranty. Lessor's obligation under this lease is limited to repair or replacement of any parts or items of equipment when Lessor determines that they do not conform to this warranty. This warranty is in lieu of all other warranties, express or implied, and of all obligations or liabilities on the part of Lessor for damages, including, but not limited to, consequential damages, arising out of or in connection with the use or performance of the equipment.
Lessee shall indemnify Lessor against, and hold Lessor harmless from, all claims, actions, proceedings, costs, damages, and liabilities, including attorney's fees, arising out of, connected with, or resulting from the leased property, including without limitation the manufacture, selection, delivery, possession, use, operation, or return of such property.
23. Deposit of Security
Lessor acknowledges that Lessee has deposited with Lessor as security, the sum of $______ and agrees that such deposit shall be security for performance of Lessee's obligations under this lease. Such sum may, at Lessor's option, be applied to satisfy any such obligation which may be in default, but the making of such deposit shall not excuse Lessee from performance of any such obligation. Any portion of such sum which has not been so applied by Lessor will be returned to Lessee at the termination of this lease.
The occurrence of any of the following events shall, at the option of the Lessor, terminate this lease and Lessee's right to possession of the property leased:
(a) The nonpayment by Lessee for a period of [spelled number of days] (______) days of any sum required under this lease to be paid by Lessee.
(b) The noncompliance by Lessee with any other term, covenant, or condition of this lease which is not cured within [spelled number of days] (______) days after notice from Lessor.
(c) The subjection of any of Lessee's property to any levy, seizure, assignment, application, or sale for or by any creditor or governmental agency.
On the happening of any of the above events, Lessor may without notice to or demand on Lessee:
(a) Take possession of the leased property and lease the property or any portion of the property to such persons, for such period, and at such rental as Lessor shall elect, and apply the proceeds of any such leasing, after deducting all costs and expenses incurred in connection with the recovery, repair, storage, and leasing of the property, in payment of the rent and other obligations due from Lessee to Lessor under this agreement, Lessee remaining responsible for any deficiency.
(b) Take possession of the leased property and sell it or any portion of the property at public or private sale and without demand or notice of intention to sell, and apply the proceeds of any such sale, after deducting all costs and expenses incurred in connection with the recovery, repair, storage, and sale of the property and any rentals and other obligations of Lessee then due under this lease, against the "Stipulated Loss Value" of the property sold. If the proceeds, after the permitted deduction, are less than the "Stipulated Loss Value," Lessee shall immediately pay Lessor the difference.
Lessee waives any existing and future claims and offsets against rent or other payments due under this lease, and agrees to pay such rent and other amounts regardless of any offset or claim that may be asserted by Lessee or on Lessee's behalf.
26. Effect of Waiver
No delay or omission to exercise any right, power, or remedy accruing to Lessor on any breach or default of Lessee under this lease shall impair any such right, power, or remedy of Lessor, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence in such breach or default or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default. Any waiver, permit, consent, or approval of any kind or character on the part of Lessor of any breach or default under this lease, or any waiver on the part of Lessor of any provision or condition of this lease, must be in writing and be effective only to the extent in such writing specifically set forth. All remedies, either under this lease or by law, or otherwise afforded to Lessor, shall be cumulative and not alternative.
27. Unsuccessful Party Pays Attorneys' Fees
In the event of any action filed in relation to this lease, the unsuccessful party in such litigation will pay to the successful party, in addition to all other sums that either party may be called on to pay, a reasonable sum for the successful party's attorneys' fees.
28. Assignment or Sublease
Without the prior written consent of the Lessor, Lessee shall not:
(a) Assign, transfer, pledge, or hypothecate this lease, the leased property or any part of such property, or any interest in such property;
(b) Sublet or lend the property leased or any part of such property; or
(c) Permit the property leased or any part of such property to be used by anyone other than Lessee or Lessee's employees. Lessor may assign its interest, or a part of such interest, in this lease.
29. Location of Property Leased
Lessee will not, without prior written consent of Lessor, permit the property leased to be removed from ______.
The property leased is and shall at all times remain the sole property of Lessor, and Lessee shall have no right, title, or interest in such property except as expressly set forth in this lease.
31. Personal Property
The property leased is, and shall at all times remain, personal property, notwithstanding that it or any part of it may now be, or may in the future become, in any manner attached to, or embedded in, or permanently resting on, real property or any building on such real property, or attached in any manner to what is permanent as by means of cement, plaster, nails, bolts, or screws.
32. Applicable Law
This lease shall be governed by and construed under the laws of the state of ______.
33. Suspension of Obligations of Lessor
The obligations of Lessor under this lease shall be suspended to the extent that it is hindered or prevented from complying with those obligations because of labor disturbances, including strikes and lockouts, acts of God, fires, storms, accidents, governmental regulations, or interferences or any cause whatsoever beyond the control of Lessor.
34. Records and Statements
Lessee shall keep books and records in accordance with good accounting practice and shall deliver to Lessor financial and profit and loss statements in such form and at such time as Lessor may require. Lessee shall permit Lessor to examine and audit the books of Lessee's business.
Any communications between Lessor and Lessee, payments, and notices provided here to be given or made, may be given or made by mailing them to Lessor at ______, ______, ______ ______, and to Lessee at ______, ______, ______ ______, or to such other addresses as either party may indicate in writing.
*[36. Option To Purchase
Lessor grants to Lessee the option to purchase the personal property leased in this agreement, provided that Lessee gives notice to Lessor, in writing, of its intention to exercise such option during the period of [spelled number of days] (______) days immediately preceding the expiration of this lease, and provided further that Lessee's right to so purchase the property is conditioned upon Lessee's complete performance of all the terms and provisions of this lease on its part to be performed, including full payment of the rental as specified in this lease. Should Lessee exercise the option, ______% of the sum paid as rent under this lease shall be applied to the purchase price of the personal property leased in this agreement, and on receipt of the balance of the purchase price by Lessor, together with a sum equal to any new or applicable unpaid sales and use taxes, Lessor will transfer title of such personal property to Lessee, and will deliver, on Lessee's written request, written evidence of the transfer of such title.
The option purchase price is $______.
]**[37. No Purchase Option
Lessee shall have no option to purchase or otherwise acquire title to or ownership of any of the equipment and shall have only the right to use it under and subject to the terms and provisions of this lease.
In the event that Lessor and Lessee are unable to agree on any question arising under this lease, the dispute shall be submitted to ______ of ______ for arbitration and determination, and the decision shall be final and conclusive on the parties.
*[39. Financing Statements
Lessee appoints Lessor its true and lawful attorney to prepare, execute and sign any financing statements in order to protect its interest in the property set forth in this agreement, and to sign the name of the Lessee with the same force and effect as if signed by the Lessee, and to file such statement in the proper state and counties as required, and Lessee declares that such financing statements signed by the Lessor as its attorney shall be binding upon its heirs and assigns.
]*IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.
[Sig Block Party 1]
[Notary Party 1]
[Sig Block Party 2]
[Notary Party 2]