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Equipment Lease Agreement With Option To Purchase
"I need an Equipment Lease Agreement with Option to Purchase for leasing 3 heavy-duty construction cranes to a manufacturing company in Manila, with a 36-month lease term starting March 1, 2025, and an option to purchase at 70% of market value after 24 months."
1. Parties: Identification of lessor and lessee with complete legal names and addresses
2. Background: Context of the agreement, including brief description of the business relationship and purpose of the lease
3. Definitions: Definitions of key terms used throughout the agreement
4. Equipment Description: Detailed description of the leased equipment, including make, model, serial numbers, and condition
5. Lease Term and Renewal: Duration of the lease, commencement date, and renewal provisions
6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and late payment penalties
7. Delivery and Installation: Terms regarding equipment delivery, installation requirements, and acceptance procedures
8. Use and Maintenance: Permitted use of equipment, maintenance responsibilities, and operating conditions
9. Purchase Option: Terms and conditions for exercising the purchase option, including pricing formula and procedure
10. Insurance and Risk: Insurance requirements, risk allocation, and liability provisions
11. Default and Remedies: Events of default, cure periods, and available remedies
12. Return of Equipment: Conditions and procedures for equipment return if purchase option not exercised
13. Representations and Warranties: Standard representations and warranties from both parties
14. General Provisions: Standard boilerplate clauses including governing law, notices, and amendments
1. Environmental Compliance: Required for equipment that may have environmental impacts or require specific environmental permits
2. Training and Support: Include when the equipment requires specialized training or ongoing technical support
3. Software License: Necessary when the equipment includes software components
4. Multiple Location Use: Required when equipment may be used at different locations
5. Import/Export Compliance: Include for equipment subject to international trade regulations
6. Sublease Rights: Optional section allowing or prohibiting subleasing of equipment
7. Early Purchase Option: Details of any early purchase options before the end of the lease term
8. Equipment Upgrade Rights: Terms for upgrading or exchanging equipment during the lease term
1. Schedule A - Equipment Specifications: Detailed technical specifications and photographs of the equipment
2. Schedule B - Rental Payment Schedule: Detailed breakdown of rental payments, including dates and amounts
3. Schedule C - Purchase Option Pricing: Formula or fixed prices for purchase option at different points in time
4. Schedule D - Maintenance Requirements: Detailed maintenance schedule and procedures
5. Schedule E - Acceptance Certificate: Form for documenting equipment delivery and acceptance
6. Schedule F - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements
7. Schedule G - Return Conditions: Detailed specifications for equipment condition upon return
8. Appendix 1 - Location Requirements: Specific requirements for equipment installation and operation locations
Authors
Acceptance Date
Applicable Law
Business Day
Commencement Date
Delivery Date
Equipment
Equipment Location
Event of Default
Exercise Notice
Exercise Period
Fair Market Value
Force Majeure Event
Insurance Requirements
Lease Payment
Lease Period
Lease Term
Maintenance Requirements
Maintenance Schedule
Option Price
Option to Purchase
Permitted Use
Purchase Date
Purchase Option Period
Purchase Price
Renewal Period
Rent
Security Deposit
Specifications
Substantial Loss
Term
Termination Date
Total Loss
Transfer Date
Warranty Period
Payment Terms
Security Deposit
Use and Operation
Maintenance and Repair
Insurance
Risk of Loss
Purchase Option
Title and Ownership
Warranties
Indemnification
Default and Remedies
Assignment and Transfer
Force Majeure
Confidentiality
Representations and Warranties
Compliance with Laws
Inspection Rights
Return Conditions
Early Termination
Dispute Resolution
Governing Law
Notices
Amendments
Entire Agreement
Severability
Waiver
Further Assurance
Costs and Expenses
Taxes and Duties
Manufacturing
Construction
Agriculture
Mining
Transportation
Logistics
Healthcare
Information Technology
Telecommunications
Food Processing
Retail
Hospitality
Energy
Industrial Services
Printing and Publishing
Legal
Finance
Procurement
Operations
Risk Management
Facilities Management
Asset Management
Treasury
Business Development
Production
Maintenance
Chief Financial Officer
Finance Director
Procurement Manager
Operations Manager
Fleet Manager
Equipment Manager
Legal Counsel
Contract Administrator
Risk Manager
Facility Manager
Asset Manager
Treasury Manager
Business Development Manager
Production Manager
Maintenance Supervisor
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