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Equipment Lease Purchase Agreement template
Equipment Lease Purchase Agreement sample


What is Equipment Lease Purchase Agreement?

Equipment Lease Purchase Agreement An agreement allowing the lease and eventual purchase of equipment, outlining lease terms, purchase options, and conditions for ownership transfer.



Sample template:



EQUIPMENT LEASE PURCHASE AGREEMENT


This Equipment Lease Purchase Agreement (the "Agreement") is entered into as of the date of last signature below, by and between Richard Evergreen (the "Lessor") and Jessica Summers (the "Lessee") (collectively, the "Parties").

1. EQUIPMENT LEASE AND PURCHASE

1.1. Lease


Lessor hereby leases to Lessee the ChillMaster X-450 commercial refrigeration unit, serial number CMX450-2023 (the "Equipment"), subject to the terms and conditions set forth herein.



1.2. Purchase Option


Lessee shall have the option to purchase the Equipment at the end of the Lease Term for a purchase price as provided in Section 3.3, subject to the terms and conditions set forth herein.



2. LEASE TERM

The initial term of this Agreement shall commence on the date of delivery of the Equipment to Lessee and shall continue for a period of 12 consecutive months (the "Initial Term"). After the Initial Term, this Agreement shall automatically renew for successive one-month periods (each a "Renewal Term," and together with the Initial Term, the "Lease Term") unless either Party provides written notice of non-renewal at least 30 days prior to the end of the then-current Lease Term.



3. RENTAL PAYMENTS AND PURCHASE OPTION PRICE

3.1. Rental Payments


Lessee shall pay to Lessor a monthly rental payment of $200.00 (the "Rental Payment"), due on the first day of each calendar month during the Lease Term. The first Rental Payment shall be made on the date of delivery of the Equipment and shall be prorated based on the number of days remaining in the month. All payments shall be made in U.S. dollars.



3.2. Late Charges


If any Rental Payment is not paid within five days after its due date, Lessee shall pay to Lessor a late charge equal to 5% of the overdue amount. Late charges shall accrue daily until the overdue amount is paid in full.



3.3. Purchase Option Price


If Lessee exercises the purchase option pursuant to Section 1.2, the purchase price for the Equipment (the "Purchase Option Price") shall be the lesser of (i) the fair market value of the Equipment as of the end of the Lease Term, as determined by an independent appraiser mutually agreed upon by the Parties, or (ii) $1,200.00. Lessee shall notify Lessor in writing of its intention to exercise the purchase option no later than 30 days before the end of the Lease Term.



4. DELIVERY, INSTALLATION, AND MAINTENANCE

4.1. Delivery and Installation


Lessor shall deliver the Equipment to Lessee on an agreed-upon date, and Lessee shall be responsible for unpacking, assembling, and installing the Equipment in accordance with the manufacturer's specifications. Lessee shall bear all costs associated with delivery and installation of the Equipment.



4.2. Maintenance and Repair


During the Lease Term, Lessee shall, at its sole expense, maintain the Equipment in good working order and condition, ordinary wear and tear excepted. Lessee shall promptly notify Lessor of any damage or defect in the Equipment and shall promptly undertake, at its expense, all necessary repairs to restore the Equipment to proper working condition. If Lessee fails to make such repairs within a reasonable time, Lessor may, at its option, make the repairs and Lessee shall immediately reimburse Lessor for all costs incurred in connection with such repairs.



5. TITLE AND RISK OF LOSS

5.1. Retention of Title


Until the Purchase Option Price is paid in full and ownership of the Equipment is transferred to Lessee pursuant to Section 6, Lessor shall retain title to the Equipment. Lessee shall not encumber, pledge, or hypothecate the Equipment without the prior written consent of Lessor.



5.2. Risk of Loss


Lessee shall bear all risk of loss, theft, damage, or destruction of the Equipment from the time the Equipment is delivered to Lessee until the time title to the Equipment is transferred to Lessee or the Equipment is returned to Lessor in accordance with this Agreement. In the event of any such loss, theft, damage, or destruction, Lessee shall immediately notify Lessor in writing and shall, at its expense, promptly repair or replace the Equipment.



6. OWNERSHIP TRANSFER

If Lessee exercises the purchase option pursuant to Section 1.2 and pays the Purchase Option Price in accordance with Section 3.3, Lessor shall transfer title to the Equipment to Lessee by executing and delivering a bill of sale or such other documents as may be necessary to evidence the transfer of title, free and clear of all liens, encumbrances, and security interests. Upon such transfer, Lessee shall assume all risk of loss, damage, or destruction of the Equipment and shall be responsible for all costs and expenses related to the continued operation and maintenance of the Equipment.



7. WARRANTIES AND DISCLAIMERS

7.1. Equipment Warranties


Lessor assigns to Lessee, without recourse, all warranties, if any, provided by the manufacturer of the Equipment. Lessee acknowledges and agrees that aside from such manufacturer's warranties, if any, Lessor offers no warranty, express or implied, including any warranty of merchantability or fitness for a particular purpose with respect to the Equipment.



8. INDEMNIFICATION

Lessee shall indemnify, defend, and hold harmless Lessor from and against any and all claims, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or in connection with the Lease, the Equipment, or Lessee's use, operation, or maintenance of the Equipment, whether or not caused by the negligence of Lessee.



9. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the United States and the state in which the Equipment is located, without regard to its conflicts of law principles.



10. MISCELLANEOUS

10.1. Entire Agreement


This Agreement contains the entire understanding and agreement of the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, whether oral or written, between the Parties relating thereto.



10.2. Amendments


This Agreement may be amended or modified only in writing, signed by both Parties.



10.3. Assignment


Lessee may not assign this Agreement or any rights or obligations hereunder without the prior written consent of Lessor.



10.4. Notices


All notices, requests, and other communications under this Agreement shall be in writing and delivered by hand, by facsimile transmission, by overnight courier, or by certified mail, return receipt requested, addressed to the Party to be notified at the address set forth below or such other address as may be provided by a Party to the other Party in accordance with this Section.



IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date of last signature below.

_________________________ _________________________
Richard Evergreen Jessica Summers
Lessor Lessee

Date: ___________________ Date: ___________________

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Main Sections of an Equipment Lease Purchase Agreement


In this Equipment Lease Purchase Agreement, you will see the following sections:

  1. Equipment Lease and Purchase
  2. Lease Term
  3. Rental Payments and Purchase Option Price
  4. Delivery, Installation, and Maintenance
  5. Title and Risk of Loss
  6. Ownership Transfer
  7. Warranties and Disclaimers
  8. Indemnification
  9. Governing Law
  10. Miscellaneous


About each Section - Analysis and Summary:

  1. Equipment Lease and Purchase : This section outlines the leasing of the ChillMaster X-450 commercial refrigeration unit from Lessor to Lessee. It also mentions the option for the Lessee to purchase the equipment at the end of the lease term, subject to certain conditions.

  2. Lease Term : The lease term starts from the date of equipment delivery and lasts for 12 consecutive months (Initial Term). After the Initial Term, the lease automatically renews for one-month periods (Renewal Term) unless either party provides a 30-day written notice of non-renewal.

  3. Rental Payments and Purchase Option Price : The Lessee must pay a monthly rental of $200, due on the first day of each month. Late charges apply if payments are overdue. If the Lessee chooses to purchase the equipment, the price will be the lesser of the fair market value or $1,200. The Lessee must notify the Lessor of their intention to purchase 30 days before the end of the Lease Term.

  4. Delivery, Installation, and Maintenance : The Lessor delivers the equipment, and the Lessee is responsible for unpacking, assembling, and installing it. The Lessee must maintain the equipment in good working order and is responsible for all repair costs. If the Lessee fails to make repairs, the Lessor may do so and charge the Lessee for the costs.

  5. Title and Risk of Loss : The Lessor retains the title to the equipment until the Purchase Option Price is paid in full. The Lessee bears all risks of loss, theft, damage, or destruction of the equipment from the time of delivery until the title is transferred or the equipment is returned to the Lessor.

  6. Ownership Transfer : If the Lessee exercises the purchase option and pays the Purchase Option Price, the Lessor will transfer the title to the Lessee, free of all liens, encumbrances, and security interests. The Lessee then assumes all risks and responsibilities for the equipment's operation and maintenance.

  7. Warranties and Disclaimers : The Lessor assigns any manufacturer's warranties to the Lessee but offers no additional warranties. The Lessee acknowledges that the Lessor provides no warranty of merchantability or fitness for a particular purpose.

  8. Indemnification : The Lessee agrees to indemnify, defend, and hold the Lessor harmless from any claims, damages, liabilities, costs, and expenses (including attorney's fees) related to the lease, equipment, or the Lessee's use, operation, or maintenance of the equipment.

  9. Governing Law : The Agreement is governed by the laws of the United States and the state where the equipment is located, without regard to conflicts of law principles.

  10. Miscellaneous : This section covers the entire agreement between the parties and states that amendments must be in writing and signed by both parties. The Lessee cannot assign the Agreement without the Lessor's consent. All notices must be in writing and delivered by hand, fax, overnight courier, or certified mail.

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