PERSONAL
PROPERTY LEASE
GENERAL
FORM
SECTION
ONE
LEASE
_________________________
(Name of Lessor), of ___________________________ (Address of Lessor), County of
______________, State of ______________, engaged in the business of
___________________, referred to as Lessor in this agreement, leases to
_____________________ (Name of Lessee), of ________________________ (Address of
Lessee), engaged in the business of ________________________, referred to as
Lessee in this agreement, and Lessee hires from Lessor, _____________________
(describe personal property or refer to personal property described in separate
schedule, such as: all those
furnishings described in Schedule __________________, attached to and made a
part of this lease or as in any subsequent schedules which may be made a part
of this lease), on the following terms:
______________________________________________________________________
______________________________________________________________________
SECTION
TWO
TERM
The
term of this lease shall be ___________________________________ (for a period
beginning _________________ (Date), and ending __________________ (Date) or as
set forth in Schedule __________ attached to and made a part of this lease, or
as in any subsequent schedules as may be made a part of this lease).
SECTION
THREE
1RENT
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 ________________ (Date), to _________________
(Date), the sum of _________________ ($__________) on __________________ (Date)
and the sum of _________________ ($__________), on the _________, day of each
succeeding month thereafter during the term of this lease. Any past due payment of rent will bear
interest at the rate of __________ percent per year. All payments subsequent to this lease will be made at the
principal place of business of Lessor at ______________________________________
(Address) 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 Lessors
assignee, if any, after written notice of such assignment has been given to
Lessee by Lessor.
SECTION
FOUR
USE
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.
_____________ (where appropriate, add:
such property shall be used only for the purpose of _______________
(Prescribe Use in Detail)). If at any
time during the term of this lease Lessor supplies Lessee with labels, plates,
or ether markings stating that the property is owned by Lessor, Lessee shall
affix and keep them in a prominent place on the property.
SECTION
FIVE
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.
SECTION
SIX
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.
SECTION
SEVEN
ALTERATIONS
______________________________
(Lessee agrees that it will make no alterations in the leased property without
obtaining prior written permission from Lessor or, where appropriate: Lessee is given the right to make alterations,
additions, or improvements to the property, so long as its value is not reduced
thereby). 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.
SECTION
EIGHT
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.
SECTION
NINE
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 therefor 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.
SECTION
TEN
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 Section Nine 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 Lessees 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 Lessees 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 Lessees option to
purchase it as set out in this agreement.
SECTION
ELEVEN
INSURANCE
Lessee,
at its own expense, will maintain the leased property insured for such risks
and in such amounts as Lessor may require with carriers acceptable to Lessor,
will maintain a loss payable endorsement in favor of Lessor affording to Lessor
such additional protection as Lessor may require, and will maintain liability
insurance satisfactory to Lessor. All
such insurance will name Lessor and Lessee as insureds. The policies will provide that they may not
be canceled or altered without at least ______ days prior written notice to
Lessor, and the loss payable endorsement will provide that all amounts payable
by reason of loss of or damage to the property will be payable only to
Lessor. Lessee will 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 Section Nine 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 Section Nine.
SECTION
TWELVE
TAXES
AND FEES
Lessee
will 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 charges, excepting 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 Lessors 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 section.
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.
SECTION
THIRTEEN
LESSEES
FAILURE TO MAINTAIN INSURANCE OR PAY TAXES
Should
Lessee fail to make any payment or do any act as provided in Sections 11 or 12
of this lease, then Lessor will 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 that 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 will be without demand immediately due and payable by Lessee
and will bear interest at the rate of __________ percent per year thereafter
until paid.
SECTION
FOURTEEN
WARRANTIES
Lessee
acknowledges that the leased property is of a size, design, capacity, and
manufacture selected by Lessee. LESSOR
_____________ (add, where appropriate:
IS NOT A MANUFACTURER OF THE PROPERTY OR A DEALER IN SIMILAR PROPERTY
AND 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 manufacturers
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
therein or by any incident in connection therewith.
SECTION
FIFTEEN
INDEMNITY
Lessee
will indemnify Lessor against, and hold Lessor harmless from, all claims,
actions, proceedings, costs, damages, and liabilities, including attorneys
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.
SECTION
SIXTEEN
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 Lessees obligations under this lease. Such sum may, at Lessors option, be applied to satisfy any such
obligation which may be in default, but the making of such deposit will 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.
SECTION
SEVENTEEN
DEFAULT
The
occurrence of any of the following events will, at the option of the Lessor,
terminate this lease and Lessees right to possession of the property leased:
(A) The nonpayment by Lessee for a period of
____________ days of any sum required under this lease to be paid by Lessee.
(B) The default by Lessee under any other term,
covenant, or condition of this lease which is not cured within ______________
days after notice from Lessor.
(C) The subjection of any of Lessees 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 hereunder, 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.
SECTION
EIGHTEEN
OFFSET
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 Lessees
behalf.
SECTION
NINETEEN
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 therein, 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.
SECTION
TWENTY
ATTORNEYS
FEES
In
the event of any action filed in relation to this lease __________ (Lessee, in
addition to all other sums that Lessee may be called on to pay, will pay to
Lessor a reasonable sum for Lessors attorneys fees or 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).
SECTION
TWENTY-ONE
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 it;
(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 Lessees employees. Lessor may assign its interest, or a part of
such interest, in this lease.
SECTION
TWENTY-TWO
LOCATION
OF PROPERTY LEASED
Lessee
will not, without prior written consent of Lessor, permit the property leased
to be removed from _____________________________________________.
SECTION
TWENTY-THREE
OWNERSHIP
The
property leased is and will at all times remain the sole property of Lessor,
and Lessee shall have no right, title, or interest therein except as expressly
set forth in this lease.
SECTION
TWENTY-FOUR
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.
SECTION
TWENTY-FIVE
APPLICABLE
LAW
This
lease shall be governed by and construed under the laws of the State of
__________.
SECTION TWENTY-SIX
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 interference or any cause whatsoever
beyond the control of Lessor.
SECTION
TWENTY-SEVEN
RECORDS
AND STATEMENTS
Lessee
will keep books and records in accordance with good accounting practice and
will 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 Lessees
business.
SECTION
TWENTY-EIGHT
NOTICES
Any
communications between Lessor and Lessee, payments, and notices provided herein
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.
SECTION
TWENTY-NINE
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 (90) days immediately
preceding the expiration of this lease, and provided further that Lessees right
to so purchase the property is conditioned upon Lessees 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. Should Lessee exercise the option, __________________ (all sums
or __________ percent 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 Lessees written request, written evidence of the transfer of such
title.
The
option purchase price herein is __________, (the sum of ______________
($__________) or the reasonable market value of the property as of
___________________ (Date), as established by __________).
SECTION
THIRTY
ARBITRATION
In
the event that Lessor and Lessee are unable to agree on any question arising
under this lease, the dispute shall be _______________ (Name) of
_____________________________ (Address) for arbitration and determination, and
__________ (His or Her) decision shall be final and conclusive on the parties.
Dated
__________.
_____________________________ ____________________________
Lessees
Signature Lessors
Signature
