This net equipment lease template has 7 pages and is a MS Word file type listed under our production & operations documents.
Sample of our net equipment lease template:
NET EQUIPMENT LEASE This Net Equipment Lease (the "Agreement") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Lessor"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [COMPANY NAME] (the "Lessee"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] EQUIPMENT AND RENT Lessor hereby leases and Lessee hereby rents from Lessor, at a monthly rent for the term of this lease, which Lessee agrees to pay to Lessor as hereinafter set forth, the following movable property (hereinafter called the "Equipment"): [SPECIFY EQUIPMENT] purchased from [SPECIFY] under their contract [NUMBER]. TERM This lease, upon the rents, promises, terms and conditions set forth herein, is for a term of [NUMBER] months and [NUMBER] Days, commencing on [DATE] and terminating on [DATE] (unless renewed as hereinafter provided). PAYMENT OF RENT Rent shall be payable monthly in arrears. The Lessor shall invoice the Lessee on or before the [NUMBER] day of each month of the term of this Lease, commencing on [DATE], for the amount of rental due for that month, which shall be calculated by the Lessor on the basis of the following amounts, plus applicable federal goods and services taxes, provincial sales taxes and other taxes: [AMOUNT] per month; plus An amount equal to the interest for one month at the annual rate equal to the prime rate of the [COMPANY NAME] plus [PERCENTAGE %] percent, as established on the first business day of each month on the amount equal to [AMOUNT] less the aggregate of all amounts paid by the Lessee to the Lessor pursuant to section 3 hereof prior to the then current rental date; plus An amount equal to the amount of [STATE/PROVINCE] capital tax, if any, paid by the Lessor in respect of or otherwise attributable to the Equipment; plus All costs of repairs to the Equipment not paid directly by the Lessee, including without limitation [SPECIFY] repairs, or replacement of all or any part of the Equipment ; less All amounts of rental collected by the Lessor from parties other than the Lessee in the event that the Lessor requests that the Lessee make the Equipment available for rental to any such third parties and Lessee so agrees, the whole in accordance with [SPECIFY SECTION] hereof. The charges in respect of the period from [DATE] to [DATE] shall be calculated on a pro rata basis and shall be added to the invoice in respect of the month of [DATE] and shall be invoiced with such charges on [DATE], save and except that the interest charges provided for in Section 3.2 above shall commence only from the disbursement of the loan made by [COMPANY NAME] and [COMPANY NAME]. (The "Creditors") to the Lessor under that certain Contract of Loan and Hypothecs executed concurrently herewith. The foregoing payments shall be made to the Lessor within [NUMBER] days of receipt of the invoice by the Lessee. ALTERNATIVE ARRANGEMENTS Should the Lessee advise the Lessor in writing that the Lessee no longer requires the Equipment prior to the expiry of the original or renewal term of this lease (as the case may be), the Lessor shall attempt to find a third party interested in either acquiring the Equipment or leasing the Equipment for a period not less than the balance of the term of this lease. The Lessee shall indemnify the Lessor for any damages resulting from the cancellation of this lease, including but not limited to the shortfall, if any, resulting from the application of the acquisition price paid or the lease payments made by the replacement lessee, as the case may be, to the sum of ([AMOUNT]), less the aggregate of all payments pursuant to subsection 3.1 hereof received to the date of cancellation by the Lessor; the Lessor shall have the sole exclusive right to any profits resulting from such sale or replacement lease over the payments contemplated hereunder. The Lessor may advise the Lessee from time to time that a third party wishes to lease the Equipment for a defined period of time. In such event, and provided that the Lessee does not require the use of the Equipment at that time, the Lessee shall make the Equipment available to the Lessor for lease to such third party. The rental collected from such sub-lessee shall be applied to the rental otherwise owing by the Lessee to the Lessor hereunder in respect of such period pursuant to subsection 3.5 hereof, and the Lessor shall have the sole exclusive right to any profits resulting from such sub-lease. Furthermore, such other lessee of the Equipment shall perform all the obligations of the Lessee hereunder for that period, to the complete exoneration of the Lessee. LOCATION AND IDENTIFICATION OF EQUIPMENT When not in active use, the Equipment shall be located at, and its movements shall at all times be controlled from, the address of the Lessee identified in the appearance hereto, and it shall not be removed from such location without the prior written consent of Lessor. The Equipment shall not be located in leased premises unless the owner and any lessor thereof waive any right, title and interest they may have as such in the Equipment in favor of the Lessor. The Lessee will not change or remove any insignia or lettering which is on the Equipment at the time of delivery thereof or which is thereafter placed thereon by the Lessor, and at any time during the term of this lease, upon request of Lessor, Lessee will affix to the Equipment, in a prominent such markings as may be supplied by Lessor. LESSEE'S INSPECTION, CONCLUSIVE PRESUMPTIONS Lessee acknowledges as between Lessor and Lessee, that the Lessee has fully inspected the Equipment, that the Equipment is in full compliance with the terms of this lease and in good condition and repair, and that Lessee is satisfied with and has accepted the Equipment. USE AND MAINTENANCE, ALTERATIONS AND ADDITIONS Lessee shall use the Equipment solely in the conduct of its business and in a careful and proper manner, and shall not part with possession of or enter into any sub-lease with respect to the Equipment or any part thereof or assign this lease or its interest hereunder without the prior written consent of Lessor. Lessee at its own cost and expense, shall keep the Equipment in good repair, condition and working order and shall furnish any and all parts and labor required for that purpose. Lessee shall not make any material alterations to the Equipment without the prior written consent of Lessor. All equipment accessories, parts and replacements for or which are added to or become attached to the Equipment shall immediately become the property of Lessor and shall be deemed incorporated in the Equipment and subject to the terms of this lease as if originally leased hereunder. LOSS AND DAMAGE Subject to the following, Lessee hereby assumes and shall bear the entire risk of loss of and damage to the Equipment from any and every cause whatsoever, except where such loss or damage occurs while the Equipment is leased or has been sold to a third party pursuant to section 4 hereof. No reparable damage to the Equipment or any part thereof shall impair any obligation of Lessee under this lease, which shall continue in full force and effect. In the event of damage of any kind whatever to any item of the Equipment (unless the same is damaged beyond repair), Lessee shall at its own expense place the same in good repair condition and working order. If the Equipment, or any item thereof, is determined by Lessor to be lost, stolen, destroyed or damaged beyond repair, Lessee shall immediately pay Lessor therefore in cash an amount equal to the depreciated value of the Equipment as of the date of such loss, theft or damage less any insurance proceeds or salvage value recovered by the Lessor in respect of the Equipment
