Lease of Construction Equipment Agreement
The term of this lease shall be from the date of this instrument through _________[date] and the lessee shall have an option to renew the lease under the same terms and conditions for an additional year and from year to year until and unless the lessor within ninety (90) days from the end of the term of any renewal notifies lessee that the lease shall no longer be renewable.
The rental for the full term of this agreement shall be $_____, payable at the rate of $_____, per month, except that lessee may skip payments; provided, however, lessee may not skip more than eight (8) monthly payments during the term of the lease. If lessee desires to skip more than eight (8) monthly payments, lessee shall notify lessor and shall agree to pay an interest penalty of one percent (1%) pe r month skipped in excess of eight months; and, in no event, may lessee skip more than eleven (11) months. In addition, the lessee shall place all equipment in the best possible operating condition. Rental for the option period shall be as mutually agreed to between the lessor and the lessee at the time the option is exercised. If the parties cannot agree, rental shall continue at the same annual rate with the lessee allowed three monthly skips plus one monthly skip with penalty.
In order to exercise its option all lessee must do is forward notice in writing deposited in the mail and addressed to the lessor, _________[name, and address].
Maintenance and Operations. Lessee will, at all times and at its own expense keep the leased equipment in good working order and operating condition and lessee will furnish all replacement parts and maintenance required to preserve the leased equipment according to good standards of operation during this lease. The operation and maintenance of the leased equipment shall be under the sole and exclusive control of lessee and the personnel operating and maintaining the leased equipment shall be the agents and employees of lessee and not lessor.
Return of Equipment. Upon the termination of this lease in any manner whatsoever, or upon any default by lessee, lessee shall immediately deliver and return the leased equipment to lessor at lessee's expense, in as good order and operating condition as when initially delivered to lessee and brought up to good working conditions by lessee as a part of this lease agreement, ordinary and reasonable wear and tear alone excepted. If lessee fails to return the equipment, lessor may take such steps as are necessary to repossess the equipment and lessee shall be liable to pay all reasonable expenses, including attorney fees.
Liability of Lessee. Lessee assumes full responsibility for damage, loss or destruction of the leased equipment from the date of delivery until returned to lessor. Lessee assumes full responsibility for and indemnifies lessor against and will save lessor harmless from any and all loss, liability, damage and expenses in connection with any injury to person or property arising from or in connection with the use or operation of the leased equipment.
Insurance. Lessee will carry, at its own expense, public liability insurance and property insurance to protect the lessor in the amount of not less and _________ and 00/100 dollars ($_____) per accident and the equipment shall be insured at its cost or fair market value for replacement purposes.
Taxes. Lessee will pay all taxes, fees and other charges which may be imposed on this transaction or in connection with the use of the leased equipment during the term of this lease.
Title and Possession. The leased equipment shall at all times, remain and be the sole and exclusive personal property of lessor and lessee shall have only the right to possession and use of the equipment under the terms of this lease. It is specifically understood by and between the parties that lessee shall acquire no equity in or right of ownership to the equipment and shall have no rights of any description other than those specifically granted in this agreement.
Default. This lease agreement may be terminated at the election of the lessor if the lessee is not maintaining the equipment or otherwise complying with the terms and conditions of this agreement, then lessor may take possession of the equipment. In the event of any default by lessee, the entire rental provided in this agreement through the term of the lease then in effect shall become immediately due and payable.
Assignment. The lessee may not assign any of its right, title and interest in and to this lease or any equipment covered by this lease without the consent of the lessor which consent will not be unreasonably withheld.
Nonwaiver. None of the terms, covenants or conditions of this lease shall be deemed waived by any act of lessor unless the waiver is specified in writing.
[Amendment to Lease Agreement]
1. The parties agree to follow the terms and conditions of the original lease agreement.
2. The parties agree that where the lessor has replaced worn out equipment or acquired new equipment the replacement and/or new acquisitions are satisfactory for purposes of maintaining the fixed dollar rental at the amount provided in the original lease.
3. The parties further agree to continue the lease on the same terms and conditions with the understanding however that either party may upon 90 days written notice to the other cancel the lease.
4. The parties further agree that the lessor may at any time and from time to time notify the lessee that the lessor elects to demand interest payments on delinquent rentals. Thirty days from and after the date of the demand interest at the rate of ten percent (10%) per annum on the delinquent portion of the rental then due and payable shall accrue. If a demand is made the parties further agree that the lessee may cancel the lease effective as of the date interest is to accrue, provided however, that in all events the arrearages shall be paid by the lessee to the lessor with interest at the rate of ten percent (10%) per annum plus attorney fees if the lessor must resort to the courts for collection.