Personal Property Lease

PERSONAL PROPERTY LEASE SECTION ONE LEASE (Lessor), of (Address), engaged in the business of , referred to as Lessor in this agreement, leases to (Lessee), of (Address), engaged in the business of , referred to as Lessee in this agreement, (describe personal property or refer to persona l property described in separate schedule), on the following terms: SECTION TWO TERM The term of this lease shall be beginning (Date), and ending (Date). SECTION THREE RENT 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 ex ecution 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 pri ncipal 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 l ease, 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. 2001 251 American LegalNet, Inc. SECTION FOUR USE Lessee shall use the property leased in a careful and prope r 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 INSPEC TION 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 c ondition 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 th ereby). 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 prope rty 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. 2001 251 American LegalNet, Inc. 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 m ay 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 L essor. 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 2001 251 American LegalNet, Inc. notice to Lessor, and the loss payable endorsem ent 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 wh ich 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 recei ved 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 wil l 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 le ase or any substitutions or additions to this lease as property owned by the Less