Equipment Lease Purchase Agreement An agreement allowing the lease and eventual purchase of equipment, outlining lease terms, purchase options, and conditions for ownership transfer.
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.
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.
3.1. 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.
4.1. 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.
5.1. 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.
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.
7.1. 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.
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.
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.
10.1. 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.
This Agreement may be amended or modified only in writing, signed by both Parties.
Lessee may not assign this Agreement or any rights or obligations hereunder without the prior written consent of Lessor.
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.
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In this Equipment Lease Purchase Agreement, you will see the following sections:
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