🚜 Equipment Lease Agreement Template — Free Template

An equipment lease for any tangible business equipment — machinery, vehicles, electronics, tools. Covers rental term, payments, delivery, maintenance, insurance, risk of loss, default, and end-of-lease options (return, renew, or buy).

Who needs this

Businesses leasing equipment to other businesses (lessors) and businesses renting equipment they don't want to buy outright (lessees).

What it covers

• Equipment description & delivery
• Lease term, rent, security deposit
• Use restrictions & location
• Maintenance & repair responsibility
• Insurance & risk of loss
• Title (lessor retains)
• End-of-lease: return, renew, or purchase option
• Default & remedies

Template clauses

1. Lease of Equipment

Lessor hereby leases to Lessee, and Lessee leases from Lessor, the equipment described on Exhibit A (the "Equipment") on the terms set forth in this Agreement.

2. Term

The lease term shall commence on the date the Equipment is delivered to Lessee (the "Commencement Date") and continue for {{lease_term}} thereafter, unless earlier terminated in accordance with this Agreement (the "Initial Term").

3. Rent & Payment

Lessee shall pay Lessor monthly rent of $[MONTHLY RENT], payable in advance on the first day of each month. The first month's rent shall be paid on the Commencement Date, prorated for partial months. Lessee shall also pay a refundable security deposit of $[SECURITY DEPOSIT] upon execution of this Agreement, to be returned within thirty (30) days after lease end, less any amounts owed to Lessor.

4. Delivery & Acceptance

Lessor shall deliver the Equipment to [DELIVERY LOCATION] on or before [DELIVERY DATE]. Lessee shall inspect the Equipment within five (5) business days of delivery and notify Lessor in writing of any defects. Failure to notify within such period shall constitute Lessee's acceptance of the Equipment.

5. Use & Location

Lessee shall use the Equipment solely for its intended business purpose, in accordance with the manufacturer's instructions and all applicable laws. Lessee shall not relocate the Equipment outside [LOCATION/STATE] without Lessor's prior written consent. Lessee shall not sublease, assign, or grant any security interest in the Equipment.

6. Maintenance & Repair

{{#when maintenance_party=lessee}}LESSEE RESPONSIBILITY. Lessee shall, at its expense, maintain the Equipment in good operating condition and make all ordinary repairs. Lessee shall use only manufacturer-approved parts and qualified service providers.{{/when}}{{#when maintenance_party=lessor}}LESSOR RESPONSIBILITY. Lessor shall maintain the Equipment in good operating condition, including all scheduled preventive maintenance and ordinary repairs. Lessee shall provide reasonable access for service.{{/when}}

In either case, Lessee is responsible for damage caused by misuse, neglect, or unauthorized modifications.

7. Insurance & Risk of Loss

Lessee shall, at its expense, maintain (a) property insurance on the Equipment for its full replacement value, naming Lessor as loss payee, and (b) commercial general liability insurance of not less than $1,000,000 per occurrence, naming Lessor as additional insured. Lessee shall furnish certificates of insurance upon request. Risk of loss for the Equipment passes to Lessee on the Commencement Date. If the Equipment is lost, stolen, or destroyed, Lessee shall continue to pay rent through the end of the Initial Term or, at Lessor's option, pay the stipulated loss value set forth on Exhibit A.

8. Taxes

Lessee shall pay all sales, use, personal property, and other taxes (other than Lessor's net income taxes) imposed in connection with the Equipment, its use, or the rent payable under this Agreement.

9. Title

Title to the Equipment shall at all times remain with Lessor. Lessee acquires only the right to use the Equipment during the lease term. Lessee shall not affix the Equipment to real property in a manner that would make it a fixture. Upon Lessor's request, Lessee shall execute UCC-1 financing statements identifying Lessor's interest.

10. End of Lease

At the end of the Initial Term, Lessee shall {{#when end_of_term_option=return}}return the Equipment to Lessor at [RETURN LOCATION] in the same condition as delivered, ordinary wear and tear excepted.{{/when}}{{#when end_of_term_option=renew}}renew this lease for an additional term of [RENEWAL TERM] at the then-current rate, by giving written notice at least sixty (60) days before lease end.{{/when}}{{#when end_of_term_option=purchase}}purchase the Equipment for a price of $[PURCHASE OPTION PRICE] (or its then fair market value), by giving written notice at least sixty (60) days before lease end and paying the purchase price on lease end.{{/when}}

If Lessee fails to elect one of the above, the lease shall continue on a month-to-month holdover basis at 125% of the monthly rent until the Equipment is returned.

11. Default & Remedies

Each of the following is an Event of Default: (a) failure to pay any rent within ten (10) days of when due; (b) breach of any other material obligation that is not cured within thirty (30) days of written notice; (c) Lessee's insolvency or bankruptcy; or (d) unauthorized sale, transfer, or relocation of the Equipment. Upon an Event of Default, Lessor may, in addition to all other available remedies, (i) declare all unpaid rent for the remaining term immediately due and payable; (ii) repossess the Equipment without judicial process to the extent permitted by law; and (iii) recover its reasonable costs of repossession, storage, repair, and resale, including attorneys' fees.

12. Warranty Disclaimer

LESSOR LEASES THE EQUIPMENT "AS-IS." LESSOR DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. LESSEE'S SOLE WARRANTY REMEDIES, IF ANY, SHALL BE THOSE PROVIDED BY THE EQUIPMENT MANUFACTURER, WHICH LESSOR HEREBY ASSIGNS TO LESSEE TO THE EXTENT ASSIGNABLE.

13. Governing Law

This Agreement shall be governed by the laws of the State of [STATE]. Any dispute shall be resolved in the state or federal courts located in [COUNTY, STATE].

14. Miscellaneous

This Agreement (with Exhibit A) constitutes the entire agreement between the parties regarding the lease of the Equipment and supersedes all prior agreements. Any amendment must be in writing and signed by both parties. If any provision is held unenforceable, the remaining provisions shall continue in full force.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date written above.

[PARTY A NAME]
Signature: __________________________
Date: ______________

[PARTY B NAME]
Signature: __________________________
Date: ______________


EXHIBIT A — EQUIPMENT

Description: {{equipment_description}}
Make / Model: {{equipment_make_model}}
Serial Number: {{equipment_serial}}
Quantity: {{equipment_quantity}}
Delivery Location: {{delivery_location}}
Stipulated Loss Value: ${{stipulated_loss_value}}

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