[{"data":1,"prerenderedAt":522},["ShallowReactive",2],{"document-net-equipment-lease-D1152":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":38,"customDescModule":179,"customdescription":6,"mdFm":180,"mdProseHtml":521},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":22},"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",null,"Net Equipment Lease","7",70,"doc","https://templates.business-in-a-box.com/imgs/1000px/net-equipment-lease-D1152.png","https://templates.business-in-a-box.com/imgs/250px/1152.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1152.xml",{"title":6,"description":6},[16,19],{"label":17,"url":18},"Production & Operations","/templates/production-operations/",{"label":20,"url":21},"Equipment Agreement","/templates/equipment-agreement/","net equipment lease","Net Equipment Lease Template","https://templates.business-in-a-box.com/imgs/400px/1152.png","https://templates.business-in-a-box.com/imgs/600px/1152.png",[27,16,19],{"label":28,"url":29},"Templates","/templates/",[31,32,35],{"label":28,"url":29},{"label":33,"url":34},"Legal Agreements","/templates/business-legal-agreements/",{"label":36,"url":37},"Real Estate & Leases","/templates/real-estate-and-leases/",[39,43,47,51,55,59,63,67,71,75,79,83,87,102,115,133,148,161],{"label":40,"url":41,"thumb":42,"extension":10},"Net Equipment Lease 2","/template/net-equipment-lease-2-D1151","https://templates.business-in-a-box.com/imgs/250px/1151.png",{"label":44,"url":45,"thumb":46,"extension":10},"Checklist Equipment Lease","/template/checklist-equipment-lease-D1134","https://templates.business-in-a-box.com/imgs/250px/1134.png",{"label":48,"url":49,"thumb":50,"extension":10},"Equipment Lease Agreement","/template/equipment-lease-agreement-D1140","https://templates.business-in-a-box.com/imgs/250px/1140.png",{"label":52,"url":53,"thumb":54,"extension":10},"Equipment Operating Lease","/template/equipment-operating-lease-D1145","https://templates.business-in-a-box.com/imgs/250px/1145.png",{"label":56,"url":57,"thumb":58,"extension":10},"Equipment Lease Agreement Long","/template/equipment-lease-agreement-long-D1141","https://templates.business-in-a-box.com/imgs/250px/1141.png",{"label":60,"url":61,"thumb":62,"extension":10},"Equipment Lease Agreement Short","/template/equipment-lease-agreement-short-D1142","https://templates.business-in-a-box.com/imgs/250px/1142.png",{"label":64,"url":65,"thumb":66,"extension":10},"Equipment Lease Agreement With Option to Purchase","/template/equipment-lease-agreement-with-option-to-purchase-D1143","https://templates.business-in-a-box.com/imgs/250px/1143.png",{"label":68,"url":69,"thumb":70,"extension":10},"Equipment and Leasehold Improvements Lease Agreement Long","/template/equipment-and-leasehold-improvements-lease-agreement-long-D1139","https://templates.business-in-a-box.com/imgs/250px/1139.png",{"label":72,"url":73,"thumb":74,"extension":10},"Equipment Purchase Agreement","/template/equipment-purchase-agreement-D1146","https://templates.business-in-a-box.com/imgs/250px/1146.png",{"label":76,"url":77,"thumb":78,"extension":10},"Equipment Loan Agreement","/template/equipment-loan-agreement-D12843","https://templates.business-in-a-box.com/imgs/250px/12843.png",{"label":80,"url":81,"thumb":82,"extension":10},"Equipment Maintenance Agreement","/template/equipment-maintenance-agreement-D1144","https://templates.business-in-a-box.com/imgs/250px/1144.png",{"label":84,"url":85,"thumb":86,"extension":10},"Equipment Maintenance Log","/template/equipment-maintenance-log-D13685","https://templates.business-in-a-box.com/imgs/250px/13685.png",{"description":88,"descriptionCustom":6,"label":89,"pages":90,"size":91,"extension":10,"preview":92,"thumb":93,"svgFrame":94,"seoMetadata":95,"parents":97,"keywords":96,"url":101},"VEHICLE LEASE AGREEMENT This Vehicle Lease Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [COMPANY NAME] (the \"Lessor\"), a corporation organized and existing under the laws of [STATE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Lessee\"), a corporation organized and existing under the laws of [STATE], with its head office located at: [COMPLETE ADDRESS] RECITALS WHEREAS, the Lessor is the registered owner of the Vehicle. WHEREAS, the lessor is desirous of leasing and the lessee has agreed to lease the said motor vehicle on the terms and conditions contained herein. WHEREAS, this Agreement shall be treated as a true lease for the federal and applicable state income tax purposes with Lessor having all benefits of ownership of the Vehicle. NOW THEREFORE THE PARTIES AGREE AS FOLLOWS: LEASED VEHICLES The Lessor hereby leases to the Lessee the vehicle described in Exhibit 1 attached hereto, subject to the conditions and covenants set forth below. The Vehicle shall be used by the Lessee to serve the best interests of the Lessor and the public. The Vehicle must be maintained and operated in a manner that provides maximum safety and protection to the Lessee's employees and passengers. The Lessee shall comply with all driver's license requirements as set forth by the Federal and State Governments. AMOUNT DUE AT THE beginning OF THE TRANSACTION Lesser and Lessee agree on the following: A down payment of $[SPECIFY] will be made at the beginning of the transaction. This amount will be subtracted from the amount to be amortized over the term. A security deposit of $[SPECIFY] is due at the beginning of the transaction and will be refunded at the end of the term. SECURITY DEPOSIT The security deposit will not earn interest. The security deposit shall be retained by the Lessor during the term of this Lease as additional security for the performance of the Lessee's obligations under this Lease. The Lessor shall deduct from the security deposit any amount not paid by the Lessee under this Lease and the balance, if any, shall be refunded at the end of this Lease. TERM OF LEASE AND COMMENCEMENT DATE The term of this lease shall be for [MONTH/YEARS], commencing on [DAY/MONTH/YEAR] the date that the vehicle(s) are placed in service by the Lessee and continuing until [DAY/MONTH/YEAR], or until this agreement is canceled or terminated in writing by either the Lessor or Lessee, or by mutual consent, with 30 days advance notice. The maximum term of any lease agreement shall not exceed five (5) years. In the event of breach or noncompliance with this agreement, the Lessor may terminate this agreement by giving the Lessee advance written notice. LEASE PAYMENTS, FEES AND RESIDUAL VALUE The Lessor and Lessee have negotiated and agreed that the initial value of the vehicle is $[SPECIFY]. The rental price of the motor vehicle is $[SPECIFY] payable on the [SPECIFY] day of the MONTH for the next [SPECIFY] months. The lease rate is [SPECIFY] % per annum. The estimated residual value of the Vehicle is $[SPECIFY]. A late fee of $ [SPECIFY] will be charged on all payments that are paid after the due date. INSURANCE At all times during the term of this lease, the Lessee shall obtain and maintain, at its own expense, the following minimum insurance coverage through a recognized insurer. Public liability for bodily injury, death or damage to the property of others in the amount of $1,000,000 per claim, regardless of the number of claims resulting from any one accident; Collision insurance with a maximum deductible of $1,000; and Comprehensive fire and theft insurance with a maximum deductible of $1,000. If the Lessee does not maintain appropriate insurance coverage, the Lessor has the right, but not the obligation, to do so and the Lessee will owe us this amount. Insurance coverage must be confirmed annually to the Lessor. The insurance policy must name the Lessor as an additional insured and beneficiary of the loss under the applicable insurance policy. The policy must also give the Lessor at least ten (10) days notice of any cancellation, termination or reduction in coverage. The Lessee will assign to the Lessor any monies paid under the insurance regardless of who obtained it. The Lessee authorizes the Lessor to receive or collect any monies (including any refund of premiums) payable under the insurance, to complete any proof of loss and any claim, to endorse cheques or drafts for payments and to cancel the insurance or settle or discharge any claim under the insurance. If for any reason the insurance is not fully maintained or coverage is denied, the Lessee will remain liable to us for all amounts due under this lease. The Lessee shall authorize its insurance provider to provide the Lessor with the details of the insurance policy. Any repairs over $2,000 must be approved in advance by the Lessor. The lessee agrees to permit the lessor to inspect the vehicle at any reasonable time and place after making such repairs. OWNERSHIP The Lessor is the registered owner of the vehicle. All right, title and interest in and to the Vehicle shall remain with the Lessor and nothing in this Agreement shall be deemed to transfer to the Lessee any right of ownership. lessor obligations It is agreed that the lessor will make the vehicle available to the lessee during the term of this vehicle lease agreement. The Lessor hereby agrees: To grant the Lessee exclusive use and possession of the motor vehicle during the duration of this agreement, save as is provided for by the agreement; To grant the Lessee quiet possession of the motor vehicle; lessEE obligations It is agreed that the Lessee shall make use of the Vehicle during the operation of this Vehicle Lease Agreement in accordance with terms of this Vehicle Lease Agreement The Lessor hereby agrees: To assume all risks of loss and damage related to the vehicle;","Vehicle Lease Agreement","6",513,"https://templates.business-in-a-box.com/imgs/1000px/vehicle-lease-agreement-D12694.png","https://templates.business-in-a-box.com/imgs/250px/12694.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12694.xml",{"title":96,"description":6},"vehicle lease agreement",[98,100],{"label":33,"url":99},"business-legal-agreements",{"label":33,"url":99},"/template/vehicle-lease-agreement-D12694",{"description":103,"descriptionCustom":6,"label":104,"pages":105,"size":91,"extension":10,"preview":106,"thumb":107,"svgFrame":108,"seoMetadata":109,"parents":111,"keywords":110,"url":114},"EXCLUSIVE LEASE AGREEMENT This is an Exclusive Lease Agreement (the \"Agreement\") effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Lessor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [LESSEE NAME] (the \"Lessee\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] TERMS It is agreed that: Lessor does hereby agree to grant, demise and let and Lessee does hereby agree to take premises situated in [CITY, STATE/PROVINCE] at [ADDRESS] and described as [DESCRIBE] with appurtenances, from Start Date [DATE] to Ending Date [DATE], at the rent or sum of [AMOUNT], to be paid as follows: [ENTER LEASE TERMS] The parties here shall execute the lease herein provided for on [DATE]. The Lessor shall [Enter any utilities and/or maintenance paid by Lessor]. ","Exclusive Lease Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/exclusive-lease-agreement-D12808.png","https://templates.business-in-a-box.com/imgs/250px/12808.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12808.xml",{"title":110,"description":6},"exclusive lease agreement",[112,113],{"label":33,"url":99},{"label":33,"url":99},"/template/exclusive-lease-agreement-D12808",{"description":116,"descriptionCustom":6,"label":117,"pages":118,"size":119,"extension":10,"preview":120,"thumb":121,"svgFrame":122,"seoMetadata":123,"parents":124,"keywords":131,"url":132},"COMPANY NAME:_______________________ Address: _______________________________________ City: ______________________________ State/Province: ___________ Zip/postal code__________ Country: ________________ Phone: _________________ Fax: __________________ Email: _________________________________________ Purchase Order The following number must appear on all related correspondence, shipping papers, and invoices: P.O. NUMBER: Contact: Address: _______________________________________ City: ______________________________ State/Province: ___________ Zip/postal code___________ Country: ________________ Phone: _________________ Fax: __________________ Email: _________________________________________ Ship To:","Purchase Order","1",49,"https://templates.business-in-a-box.com/imgs/1000px/purchase-order-D1411.png","https://templates.business-in-a-box.com/imgs/250px/1411.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1411.xml",{"title":6,"description":6},[125,128],{"label":126,"url":127},"Sales & Marketing","sales-marketing",{"label":129,"url":130},"Bids & Quotes","bids-quotes","purchase order","/template/purchase-order-D1411",{"description":134,"descriptionCustom":6,"label":135,"pages":118,"size":136,"extension":10,"preview":137,"thumb":138,"svgFrame":139,"seoMetadata":140,"parents":141,"keywords":146,"url":147},"BILL OF SALE This Bill of Sale (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Seller\") , a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [BUYER NAME] (the \"Buyer\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] For good and valuable consideration, the Seller hereby sells and transfers possession of the following goods in their present condition and location to the Buyer, and its successors and assigns forever, the following described goods [DETAILED LIST OF GOODS]. Seller warrants and represents that he/she has good title to said property, full authority to sell and transfer same and that said goods and chattels are being sold free and clear of all liens, encumbrances, liabilities and adverse claims, of every nature and description.","Bill of Sale",29,"https://templates.business-in-a-box.com/imgs/1000px/bill-of-sale-D1229.png","https://templates.business-in-a-box.com/imgs/250px/1229.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1229.xml",{"title":6,"description":6},[142,143],{"label":126,"url":127},{"label":144,"url":145},"Marketing & Sales Contracts","marketing-sales-contracts","bill sale","/template/bill-of-sale-D1229",{"description":149,"descriptionCustom":6,"label":150,"pages":90,"size":91,"extension":10,"preview":151,"thumb":152,"svgFrame":153,"seoMetadata":154,"parents":156,"keywords":159,"url":160},"SERVICE AGREEMENT This SERVICE AGREEMENT (\"Agreement\") is effective [DATE], BETWEEN: [COMPANY NAME] (the \"Contractor\"), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Customer\"), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] (The Contractor and the Customer shall be individually referred to as a \"Party\" and collectively referred to as the \"Parties\", as the context may require). WHEREAS A. Contractor has experience and expertise in [DESCRIBE EXPERIENCE AND SERVICE]. B. Customer desires to have Contractor provide services for them. C. Contractor desires to provide services to Customer on the terms and conditions set forth herein (the \"Services\"). NOW THEREFORE, in consideration of the above recitals, the representations, warranties, and agreements contained in this Agreement and for other good and valuable consideration, the receipt and adequacy of which are now acknowledged, the Parties agree as follows: SERVICES PROVIDED Beginning on upon agreement to this contract, [CONTRACTOR] will provide to [CUSTOMER] the following service (collectively, the /Services\"): Description of the project: [DESCRIBE THE SERVICE REQUIRED]. SCOPE OF WORK Contractor agrees to provide Services pursuant to the Scope of Work set forth in Exhibit A attached hereto (the \"Scope of Work\"). TERM Unless both parties mutually agree on an extension, this contract will automatically terminate on [SPECIFY]. PERFORMANCE The parties agree to do everything possible to ensure that the terms of this Agreement take effect. PAYMENT FOR SERVICES In exchange for the Services rendered, a payment of [SPECIFY] will be made to the Contractor upon completion of the scheduled Services described in this Contract. If an invoice is not paid on the due date, interest will be added to the current balance. These amounts shall be payable, and the Customer shall pay all overdue amounts at the lesser of [SPECIFY] per cent per annum or the maximum percentage permitted by applicable law. Or Customer will pay Contractor as follows: [SPECIFY]. DELIVERY OF SERVICES The Contractor will exercise due diligence in the provision of services. However, the Customer acknowledges that the indicated delivery times and other payment milestones listed in Scope of Work are estimates and do not constitute final delivery dates. SECURITY The Contractor must make reasonable security arrangement to protect Material from unauthorized access, collection, use, alteration or disposal. OWNERSHIP RIGHT The Customer shall hold the copyright for the agreed version of the Services as delivered, and the Customer's copyright notice may be displayed in the final version. All works, ideas, discoveries, inventions, patents, products or other information that may be protected by copyright (collectively, the \"Work Product\" developed in whole or in part by the Contractor in connection with the Services, shall be the exclusive property of the Customer. Upon request, the Contractor shall execute all documents necessary to confirm or perfect the exclusive ownership of the Customer's \"Work Product\". The Contractor retains exclusive rights to pre-existing materials used in the Customer's projects. The Customer shall not have the right to reuse, resell or otherwise transfer material belonging to the contractor or third parties. The Contractor reserves the right to use the finished public product as an example of a product. RETURN OF PROPERTY Upon the expiry or termination of this Agreement, the Contractor will return to the Customer any property, documentation, records or Confidential Information which is the property of the Customer. COMPENSATION For all services rendered by the Contractor under this Agreement, the Customer shall indemnify the Contractor. In the event that the Customer fails to make any of the payments mentioned, the Contractor shall have the right, but shall not be obliged, to exercise any of the following remedies: ","Service Agreement","https://templates.business-in-a-box.com/imgs/1000px/service-agreement-D12711.png","https://templates.business-in-a-box.com/imgs/250px/12711.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12711.xml",{"title":155,"description":6},"service agreement",[157,158],{"label":33,"url":99},{"label":33,"url":99},"maintenance service agreement","/template/maintenance-service-agreement-D12711",{"description":162,"descriptionCustom":6,"label":163,"pages":164,"size":165,"extension":10,"preview":166,"thumb":167,"svgFrame":168,"seoMetadata":169,"parents":170,"keywords":177,"url":178},"COMMERCIAL LEASE AGREEMENT This Lease Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Landlord\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [TENANT NAME] (the \"Tenant\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] DESCRIPTION OF PREMISES Landlord leases to Tenant the premises located at [address], [city], [state], and described more particularly as follows: [insert legal description]. GRANT OF LEASE Landlord, in consideration of the rents to be paid and the covenants and agreements to be performed and observed by the Tenant, does hereby lease to the Tenant and the Tenant does hereby lease and take from the Landlord the property described in Exhibit \"A\" attached hereto and by reference made a part hereof (the \"Leased Premises\"), together with, as part of the parcel, all improvements located thereon. LEASE TERM Total Term of Lease: The term of this Lease shall begin on the commencement date, as defined in Section b) of this Article 3, and shall terminate on [DATE]. Commencement Date: The \"Commencement Date\" shall mean the date on which the Tenant shall commence to conduct business on the Leased Premised, so long as such date is not in excess of [NUMBER] days subsequent to execution hereof. EXTENSIONS The parties hereto may elect to extend this Agreement upon such terms and conditions as may be agreed upon in writing and signed by the parties at the time of any such extension. DETERMINATION OF RENT The Tenant agrees to pay the Landlord and the Landlord agrees to accept, during the term hereof, at such place as the Landlord shall from time to time direct by notice to the Tenant, rent at the following rates and times: Annual Rent: Annual rent for the term of the Lease shall be [AMOUNT], plus applicable sales tax. Payment of Yearly Rent: The annual rent shall be payable in advance in equal monthly installments of one-twelfth (1/12th) of the total yearly rent, which shall be [AMOUNT], on the first day of each and every calendar month during the term hereof, and prorata for the fractional portion of any month, except that on the first day of the calendar month immediately following the Commencement Date, the Tenant shall also pay to the Landlord rent at the said rate for any portion of the preceding calendar month included in the term of this Lease. Reference to yearly rent hereunder shall not be implied or construed to the effect that this Lease or the obligation to pay rent hereunder is from year to year, or for any term shorter than the existing Lease term, plus any extensions as may be agreed upon. A late fee in the amount of [AMOUNT] shall be assessed if payment is not postmarked or received by Landlord on or before the tenth day of each month. USE OF PROPERTY BY TENANT The Leased Premises may be occupied and used by Tenant exclusively as a [DESCRIBE], to be known as a [DESCRIBE]. Nothing herein shall give Tenant the right to use the property for any other purpose or to sublease, assign, or license the use of the property to any Sub-Tenant, assignee, or licensee, which or who shall use the property for any other use. RESTRICTIONS ON USE Tenant shall not use the demised premises in any manner that will increase risks covered by insurance on the demised premises and result in an increase in the rate of insurance or a cancellation of any insurance policy, even if such use may be in furtherance of Tenant's business purposes. Tenant shall not keep, use, or sell anything prohibited by any policy of fire insurance covering the demised premises, and shall comply with all requirements of the insurers applicable to the demised premises necessary to keep in force the fire and liability insurance. WASTE, NUISANCE, OR UNLAWFUL ACTIVITY Tenant shall not allow any waste or nuisance on the demised premises, or use or allow the demised premises to be used for any unlawful purpose. DELAY IN DELIVERING POSSESSION This lease agreement shall not be rendered void or voidable by the inability of Landlord to deliver possession to Tenant on the date set forth in Section 3. Landlord shall not be liable to Tenant for any loss or damage suffered by reason of such a delay; provided, however, that Landlord does deliver possession no later than [date]. In the event of a delay in delivering possession, the rent for the period of such delay will be deducted from the total rent due under this lease agreement. No extension of this lease agreement shall result from a delay in delivering possession. SECURITY DEPOSIT The Tenant has deposited with the Landlord the sum of [AMOUNT] as security for the full and faithful performance by the Tenant of all the terms of this lease required to be performed by the Tenant. Such sum shall be returned to the Tenant after the expiration of this lease, provided the Tenant has fully and faithfully carried out all of its terms. In the event of a bona fide sale of the property of which the leased premises are a part, the Landlord shall have the right to transfer the security to the purchaser to be held under the terms of this lease, and the Landlord shall be released from all liability for the return of such security to the Tenant. TAXES Property Taxes: The Tenant shall be liable for all taxes levied against any leasehold interest of the Tenant or personal property and trade fixtures owned or placed by the Tenant in the Leased Premises. Real Estate Taxes: During the continuance of this lease Landlord shall deliver to Tenant a copy of any real estate taxes and assessments against the Leased Property. From and after the Commencement Date, the Tenant shall pay to Landlord not later than [NUMBER] days after the day on which the same may become initially due, all real estate taxes and assessments applicable to the Leased Premises, together with any interest and penalties lawfully imposed thereon as a result of Tenant's late payment thereof, which shall be levied upon the Leased Premises during the term of this Lease. Contest of Taxes: The Tenant, at its own cost and expense, may, if it shall in good faith so desire, contest by appropriate proceedings the amount of any personal or real property tax. The Tenant may, if it shall so desire, endeavor at any time or times, by appropriate proceedings, to obtain a reduction in the assessed valuation of the Leased Premises for tax purposes. In any such event, if the Landlord agrees, at the request of the Tenant, to join with the Tenant at Tenant's expense in said proceedings and the Landlord agrees to sign and deliver such papers and instruments as may be necessary to prosecute such proceedings, the Tenant shall have the right to contest the amount of any such tax and the Tenant shall have the right to withhold payment of any such tax, if the statute under which the Tenant is contesting such tax so permits. Payment of Ordinary Assessments: The Tenant shall pay all assessments, ordinary and extraordinary, attributable to or against the Leased Premises not later than [NUMBER] days after the day on which the same became initially due. The Tenant may take the benefit of any law allowing assessments to be paid in installments and in such event the Tenant shall only be liable for such installments of assessments due during the term hereof. ","Commercial Lease Agreement","19",145,"https://templates.business-in-a-box.com/imgs/1000px/lease-agreement-D1179.png","https://templates.business-in-a-box.com/imgs/250px/1179.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1179.xml",{"title":6,"description":6},[171,174],{"label":172,"url":173},"Real Estate","real-estate-business",{"label":175,"url":176},"Business Checklists","business-checklists","lease agreement","/template/lease-agreement-D1179",false,{"seo":181,"reviewer":194,"legal_disclaimer":193,"quick_facts":198,"at_a_glance":200,"personas":204,"variants":229,"glossary":255,"clauses":289,"how_to_fill":340,"common_mistakes":381,"faqs":406,"industries":434,"comparisons":451,"diy_vs_lawyer":464,"jurisdictions":477,"related_template_ids_curated":498,"schema":508,"classification":509},{"meta_title":182,"meta_description":183,"primary_keyword":184,"secondary_keywords":185,"family":184,"is_canonical":193},"Net Equipment Lease Template (Free Word)","Free net equipment lease template for businesses leasing machinery, vehicles, or technology. Used in 190+ countries. Free Word and PDF download.","net equipment lease template",[186,187,188,189,190,191,192],"net equipment lease agreement","equipment lease contract template","equipment lease template word","equipment lease template free","triple net equipment lease","commercial equipment lease agreement","equipment rental agreement template",true,{"name":195,"credential":196,"reviewed_date":197},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":199,"legal_review_recommended":193,"signature_required":193,"notarization_required":179},"advanced",{"what_it_is":201,"when_you_need_it":202,"whats_inside":203},"A Net Equipment Lease is a legally binding agreement in which a lessee rents equipment from a lessor and assumes responsibility for some or all operating costs — including maintenance, insurance, and taxes — beyond the base rent payment. This free Word download gives you a professionally structured starting point you can edit online and export as PDF, covering all essential terms from equipment description through end-of-term options.\n","Use it when a business needs to acquire use of machinery, vehicles, technology hardware, or industrial equipment without purchasing it outright, and where the lessee will bear ongoing operational costs rather than the lessor. It is particularly appropriate for long-term arrangements of twelve months or more where both parties want clearly documented obligations.\n","Equipment identification and condition, lease term and base rent schedule, lessee obligations for maintenance and repairs, insurance requirements, tax and regulatory responsibilities, default and remedies provisions, end-of-term purchase options, and governing law.\n",[205,209,213,217,221,225],{"title":206,"use_case":207,"icon_asset_id":208},"Manufacturing companies","Leasing production machinery while retaining control over maintenance schedules","persona-manufacturer",{"title":210,"use_case":211,"icon_asset_id":212},"Construction firms","Securing long-term use of heavy equipment without capital expenditure","persona-contractor",{"title":214,"use_case":215,"icon_asset_id":216},"Healthcare providers","Leasing diagnostic or imaging equipment with defined service obligations","persona-healthcare-provider",{"title":218,"use_case":219,"icon_asset_id":220},"Technology companies","Acquiring server infrastructure or hardware under a net lease structure","persona-startup-founder",{"title":222,"use_case":223,"icon_asset_id":224},"Transportation and logistics businesses","Leasing fleet vehicles with lessee-borne insurance and maintenance","persona-small-business-owner",{"title":226,"use_case":227,"icon_asset_id":228},"Equipment lessors and leasing companies","Documenting net lease terms with commercial lessees across multiple assets","persona-finance-officer",[230,234,238,242,246,249,252],{"situation":231,"recommended_template":232,"slug":233},"Lessor retains all maintenance, insurance, and tax obligations","Gross Equipment Lease","checklist-equipment-lease-D1134",{"situation":235,"recommended_template":236,"slug":237},"Lessee assumes all operating costs including taxes, insurance, and maintenance","Triple Net Equipment Lease","net-equipment-lease-D1152",{"situation":239,"recommended_template":240,"slug":241},"Short-term equipment rental of fewer than 90 days","Equipment Rental Agreement","equipment-lease-agreement-D1140",{"situation":243,"recommended_template":244,"slug":245},"Lessee intends to purchase the equipment at end of term","Equipment Lease-to-Own Agreement","lease-to-own-agreement-D12870",{"situation":247,"recommended_template":248,"slug":237},"Leasing real property with equipment included as fixtures","Triple Net Lease Agreement",{"situation":250,"recommended_template":251,"slug":241},"Business financing equipment through a bank or finance company","Equipment Finance Agreement",{"situation":253,"recommended_template":89,"slug":254},"Leasing a single commercial vehicle rather than a fleet","vehicle-lease-agreement-D12694",[256,259,262,265,268,271,274,277,280,283,286],{"term":257,"definition":258},"Net Lease","A lease structure in which the lessee pays base rent plus one or more categories of operating costs — such as maintenance, insurance, or taxes — that would otherwise be the lessor's responsibility.",{"term":260,"definition":261},"Lessee","The party who takes possession and use of the equipment under the lease in exchange for periodic rent payments.",{"term":263,"definition":264},"Lessor","The party who owns the equipment and grants the lessee the right to use it under the terms of the lease.",{"term":266,"definition":267},"Base Rent","The fixed periodic payment the lessee makes to the lessor, excluding any additional operating costs the lessee bears under the net structure.",{"term":269,"definition":270},"Fair Market Value (FMV)","The price at which equipment would change hands between a willing buyer and seller, used to price purchase options at the end of a lease term.",{"term":272,"definition":273},"Hell-or-High-Water Clause","A provision requiring the lessee to make all rent payments unconditionally, regardless of equipment failure, damage, or disputes with the lessor.",{"term":275,"definition":276},"Purchase Option","A contractual right allowing the lessee to buy the equipment at the end of the lease term, typically at fair market value or a predetermined fixed price.",{"term":278,"definition":279},"Default","A breach of the lease by either party — most commonly the lessee's failure to pay rent or maintain insurance — that triggers the non-defaulting party's remedies.",{"term":281,"definition":282},"Residual Value","The estimated market value of the equipment at the end of the lease term, which affects the lessor's pricing of base rent and purchase options.",{"term":284,"definition":285},"Maintenance Reserve","A contractually required fund or periodic payment set aside by the lessee to cover anticipated maintenance and repair costs during the lease term.",{"term":287,"definition":288},"Acceleration Clause","A provision allowing the lessor to declare all remaining rent payments immediately due upon the lessee's default, rather than waiting for each payment date to arrive.",[290,295,300,305,310,315,320,325,330,335],{"name":291,"plain_english":292,"sample_language":293,"common_mistake":294},"Equipment description and acceptance","Identifies the leased equipment with enough specificity — make, model, serial number, and condition — to distinguish it from similar assets and establishes that the lessee accepts it in the stated condition.","Lessor hereby leases to Lessee the following equipment: [MAKE AND MODEL], Serial No. [SERIAL NUMBER], Year [YEAR] ('Equipment'), in the condition described in Schedule A. Lessee acknowledges receipt and acceptance of the Equipment in satisfactory condition.","Describing equipment only by category rather than serial number. Without a serial number, disputes about which specific asset the lease covers become difficult to resolve, and insurance claims can be rejected.",{"name":296,"plain_english":297,"sample_language":298,"common_mistake":299},"Lease term and renewal","Sets the start and end dates of the lease and specifies whether the lessee has the right to renew, on what notice, and at what rent.","This Lease shall commence on [START DATE] and continue for a term of [X] months, terminating on [END DATE], unless sooner terminated in accordance with the terms hereof. Lessee may renew for one additional [X]-month term by providing written notice no later than [X] days prior to expiration.","No renewal notice requirement or a notice window that is too short. A lessee who misses a 30-day renewal window can lose use of equipment that the business depends on, with no contractual recourse.",{"name":301,"plain_english":302,"sample_language":303,"common_mistake":304},"Base rent and payment terms","States the rent amount, payment frequency, accepted methods, late fees, and any escalation formula.","Lessee shall pay Lessor base rent of $[AMOUNT] per month, due on the [DAY] of each calendar month, beginning [FIRST PAYMENT DATE]. Payments more than [X] days late shall accrue interest at [X]% per month. Rent shall increase by [X]% annually commencing on the first anniversary of the commencement date.","Omitting a late-fee or interest-on-arrears clause. Without it, the lessor has no contractual basis to recover the cost of delayed payments beyond the base rent amount.",{"name":306,"plain_english":307,"sample_language":308,"common_mistake":309},"Maintenance and repair obligations","Assigns responsibility for routine maintenance, repairs, and compliance with manufacturer service schedules — under a net lease, this typically falls entirely on the lessee.","Lessee shall, at its sole expense, keep the Equipment in good working order, make all repairs necessary to maintain the Equipment in the condition received (ordinary wear and tear excepted), and comply with all manufacturer-recommended service intervals as documented in Schedule B.","Failing to reference the manufacturer's service schedule or define 'ordinary wear and tear.' Vague maintenance language leads to disputes at end of term over whether damage is normal depreciation or lessee-caused deterioration.",{"name":311,"plain_english":312,"sample_language":313,"common_mistake":314},"Insurance requirements","Requires the lessee to maintain specified minimum coverage — typically property and liability — names the lessor as an additional insured, and mandates evidence of coverage before delivery.","Lessee shall maintain, at its expense, (a) all-risk property insurance on the Equipment for not less than its full replacement value, and (b) commercial general liability insurance with limits of not less than $[AMOUNT] per occurrence. Lessee shall name Lessor as additional insured and loss payee and provide certificates of insurance prior to delivery.","Accepting the lessee's verbal confirmation of coverage instead of requiring a certificate of insurance before the lease commences. If the equipment is damaged on day one without documented coverage, the lessor may have no recovery.",{"name":316,"plain_english":317,"sample_language":318,"common_mistake":319},"Taxes and regulatory compliance","Allocates responsibility for personal property taxes, use taxes, licensing fees, and compliance with applicable laws to the lessee under the net structure.","Lessee shall pay, when due, all taxes, assessments, license fees, and governmental charges levied on or with respect to the Equipment or its use during the lease term. Lessee shall comply with all applicable federal, state, and local laws and regulations governing the operation and use of the Equipment.","Leaving tax allocation silent or ambiguous. In most jurisdictions, personal property tax on leased equipment defaults to the owner (lessor) unless expressly shifted to the lessee — a significant unbudgeted cost.",{"name":321,"plain_english":322,"sample_language":323,"common_mistake":324},"Default and remedies","Defines what constitutes a default by either party, the cure period allowed before remedies are triggered, and the remedies available — including repossession, acceleration, and damages.","An Event of Default shall include Lessee's failure to pay any rent within [X] days of its due date, or Lessee's failure to cure any non-monetary breach within [X] days of written notice. Upon default, Lessor may, without further notice, declare all remaining rent accelerated and immediately due, and repossess the Equipment.","No cure period for non-monetary defaults. Courts frequently look for good-faith cure periods before enforcing harsh remedies — a contract with no cure window risks unenforceability of its default provisions.",{"name":326,"plain_english":327,"sample_language":328,"common_mistake":329},"Risk of loss","Allocates the risk of equipment loss, theft, or destruction to the lessee from the moment of delivery, requiring the lessee to continue rent payments and replace or restore the equipment regardless of how the loss occurred.","From the date of delivery, Lessee assumes all risk of loss, damage, theft, or destruction of the Equipment. No such event shall relieve Lessee of the obligation to pay rent or any other amount due hereunder. Lessee shall promptly notify Lessor of any casualty and shall, at Lessor's election, repair, replace, or pay Lessor the replacement value of the Equipment.","No requirement to notify the lessor promptly after a casualty. Without a notice obligation, the lessor may not learn of a total loss until the insurance claim window has closed.",{"name":331,"plain_english":332,"sample_language":333,"common_mistake":334},"End-of-term options","Specifies what happens when the lease expires: the lessee must return the equipment in agreed condition, or may exercise a purchase option at a stated price, or may extend on agreed terms.","Upon expiration of the lease term, Lessee shall, at Lessor's election: (a) return the Equipment to Lessor at [LOCATION], freight prepaid, in the condition required under Section [X]; (b) purchase the Equipment at its then-current fair market value; or (c) extend the lease on a month-to-month basis at the then-prevailing rate.","No return condition standard at end of term. If the lease does not define the condition required for return, the lessee and lessor routinely disagree on whether refurbishment costs are the lessee's responsibility.",{"name":336,"plain_english":337,"sample_language":338,"common_mistake":339},"Governing law and dispute resolution","Specifies which jurisdiction's law governs the agreement and whether disputes are resolved through arbitration, mediation, or litigation.","This Agreement shall be governed by and construed in accordance with the laws of [STATE / PROVINCE]. Any dispute arising hereunder shall be resolved by binding arbitration administered by [AAA / JAMS] in [CITY, STATE], except that either party may seek injunctive relief in any court of competent jurisdiction.","Choosing a governing law that has no connection to either party's location or the equipment's location. Some state UCC Article 2A provisions apply regardless of contractual choice-of-law, creating conflicts the parties didn't anticipate.",[341,346,351,356,361,366,371,376],{"step":342,"title":343,"description":344,"tip":345},1,"Identify the parties and the equipment precisely","Enter the legal names of the lessor and lessee exactly as they appear on their business registrations. Describe the equipment in Schedule A with make, model, serial number, year, and current condition, and attach any existing inspection report.","Photograph the equipment and attach the images to the signed agreement as Exhibit A — this eliminates end-of-term disputes about pre-existing damage.",{"step":347,"title":348,"description":349,"tip":350},2,"Set the lease term and renewal mechanics","Enter the exact start and end dates. If you include a renewal right, specify the notice period — at least 60 days is typical for equipment valued over $50,000 — and whether the renewal rent is fixed, escalated, or renegotiated at fair market value.","Calendar the renewal notice deadline immediately after signing so neither party misses the window.",{"step":352,"title":353,"description":354,"tip":355},3,"Define base rent, payment schedule, and escalation","Set the monthly or quarterly rent, the specific due date within each period, accepted payment methods, the late-interest rate, and any annual escalation percentage. State the currency explicitly for cross-border leases.","An annual escalation of 2–3% tied to CPI protects the lessor against inflation on long-term leases without requiring renegotiation.",{"step":357,"title":358,"description":359,"tip":360},4,"Assign maintenance and service obligations","Specify exactly what maintenance the lessee must perform, at what intervals, and to what standard. Attach the manufacturer's service schedule as Schedule B and require the lessee to maintain service records.","Require the lessee to provide annual maintenance logs — this protects the lessor's residual value and gives the lessee documented evidence of compliance.",{"step":362,"title":363,"description":364,"tip":365},5,"Confirm insurance coverage requirements and obtain certificates","Set minimum property insurance limits at full replacement value and liability limits appropriate for the equipment type and use. Name the lessor as additional insured and loss payee. Collect a certificate of insurance before releasing the equipment.","Set a calendar reminder 30 days before each policy renewal date to verify the lessee has renewed coverage and updated the certificate.",{"step":367,"title":368,"description":369,"tip":370},6,"Allocate tax and regulatory responsibilities","Confirm in writing that personal property taxes, use taxes, licensing, and registration fees fall on the lessee. Research the applicable jurisdiction's default rules and ensure the allocation clause is specific enough to override them.","In states with high personal property tax rates on business equipment — such as Virginia or California — the tax allocation clause can represent thousands of dollars annually and warrants explicit negotiation.",{"step":372,"title":373,"description":374,"tip":375},7,"Specify default, cure periods, and remedies","Define monetary and non-monetary defaults separately. Provide a 5–10 day cure period for payment defaults and a 30-day cure period for non-monetary defaults. List specific remedies: acceleration, repossession, resale, and recovery of costs.","Include a specific provision allowing the lessor to enter the lessee's premises to repossess the equipment without legal process, to the extent permitted by applicable law — this significantly reduces repossession costs.",{"step":377,"title":378,"description":379,"tip":380},8,"Establish end-of-term options and return standards","Define the equipment return location, freight responsibility, and the condition standard (e.g., 'good working order, normal wear and tear excepted'). If a purchase option is included, fix the price or the FMV determination mechanism.","If the purchase option price is 'fair market value,' specify who determines FMV and include an appraisal tie-breaker process to avoid disputes.",[382,386,390,394,398,402],{"mistake":383,"why_it_matters":384,"fix":385},"Describing equipment without a serial number","Leases that identify equipment only by type or model cannot be enforced against a specific asset. If the lessor has multiple similar units, the lessee may receive a different — potentially inferior — piece of equipment than negotiated.","Record the make, model, year, and full serial number in the equipment description clause and confirm the serial number physically on delivery.",{"mistake":387,"why_it_matters":388,"fix":389},"No cure period for payment defaults","Immediate default and acceleration on a single missed payment is considered commercially unreasonable in most jurisdictions, and courts may refuse to enforce the remedy or award damages for wrongful repossession.","Include a 5–10 day written-notice cure period for payment defaults before any remedies are triggered, mirroring standard commercial practice.",{"mistake":391,"why_it_matters":392,"fix":393},"Lessee-borne taxes left undefined","Without a specific allocation clause, statutory default rules — which vary by state and province — may leave personal property tax liability with the lessor, creating an unbudgeted annual cost that was never priced into the lease.","Enumerate each tax category explicitly — personal property tax, sales/use tax, and regulatory fees — and confirm in writing that each falls on the lessee.",{"mistake":395,"why_it_matters":396,"fix":397},"No end-of-term return condition standard","Without a defined return standard, the lessor cannot prove the lessee caused damage beyond normal wear, and the lessee cannot demonstrate compliance. Refurbishment and repair disputes are the most common source of post-lease litigation.","Attach a pre-delivery inspection report signed by both parties and specify the same standard as the required return condition, with ordinary wear and tear explicitly excluded.",{"mistake":399,"why_it_matters":400,"fix":401},"Omitting an insurance certificate requirement before delivery","A lessee who verbally confirms coverage but has not provided a certificate may have a lapsed or insufficient policy. Equipment damaged on day one without documented coverage leaves the lessor exposed for the full replacement cost.","Make delivery of a current certificate of insurance — naming the lessor as additional insured and loss payee — a condition precedent to the equipment handover.",{"mistake":403,"why_it_matters":404,"fix":405},"Using a governing law with no connection to the parties or equipment","Selecting a favorable governing state without a real connection can be overridden by courts in the jurisdiction where the equipment is located or where the lessee operates, particularly under UCC Article 2A rules.","Choose the governing law of either the lessor's home state, the lessee's principal place of business, or the state where the equipment will be operated — and ensure that choice is defensible.",[407,410,413,416,419,422,425,428,431],{"question":408,"answer":409},"What is a net equipment lease?","A net equipment lease is a lease agreement in which the lessee pays base rent plus assumes financial responsibility for one or more categories of operating costs — typically maintenance, insurance, and taxes — that would otherwise remain with the lessor. The more cost categories the lessee absorbs, the more the structure resembles a triple-net lease. Net leases are common in commercial equipment financing because they give the lessee operational control while allowing the lessor to price base rent at a lower level than a fully-serviced gross lease.\n",{"question":411,"answer":412},"What is the difference between a net lease and a gross lease for equipment?","Under a gross equipment lease, the lessor bundles maintenance, insurance, and taxes into the base rent — the lessee pays one predictable amount and the lessor manages all operating costs. Under a net lease, those costs are unbundled and shifted to the lessee, resulting in a lower base rent but variable total cost. Net leases transfer more risk and responsibility to the lessee in exchange for greater control over how the equipment is maintained and operated.\n",{"question":414,"answer":415},"What is a triple net equipment lease?","A triple net (NNN) equipment lease shifts all three major operating cost categories — maintenance and repairs, insurance, and taxes — to the lessee, in addition to base rent. The lessor's only obligation is to provide a functioning asset at the start of the lease. Triple net structures are most common in large industrial equipment and fleet leasing where the lessee has the internal capacity to manage all operating responsibilities.\n",{"question":417,"answer":418},"Who should use a net equipment lease?","Net equipment leases are appropriate for businesses that want operational control over the equipment — particularly control over maintenance schedules and service providers — and are willing to accept the associated costs and risks. They are commonly used in manufacturing, construction, transportation, healthcare, and technology. Equipment lessors use net leases to reduce their management burden on long-term arrangements covering multiple assets.\n",{"question":420,"answer":421},"Is a net equipment lease the same as financing?","No. A net equipment lease gives the lessee the right to use the equipment during the lease term but ownership remains with the lessor, unless a purchase option is exercised. Equipment financing — such as an equipment loan or finance agreement — transfers ownership to the borrower from closing, with the lender holding a security interest. For accounting purposes, some leases that transfer substantially all risks and rewards of ownership are classified as finance leases under IFRS 16 or ASC 842, but the legal structure differs from a loan.\n",{"question":423,"answer":424},"What happens at the end of a net equipment lease?","At expiration, the lessee typically has three options: return the equipment in the condition specified by the lease, exercise a purchase option at fair market value or a predetermined price, or renew the lease on agreed terms. The specific options available depend entirely on what the contract specifies. A lease that is silent on end-of-term options generally requires return of the equipment, with the lessee bearing freight and any restoration costs.\n",{"question":426,"answer":427},"Who is responsible for equipment repairs under a net lease?","Under a net lease, repair and maintenance obligations are assigned to the lessee. This typically includes routine servicing, parts replacement, and compliance with manufacturer service schedules. The lease should specify the maintenance standard (commonly 'good working order, ordinary wear and tear excepted'), require the lessee to keep service records, and distinguish between routine maintenance (lessee's cost) and structural or latent defects present at delivery (lessor's responsibility).\n",{"question":429,"answer":430},"Do I need a lawyer to draft a net equipment lease?","For straightforward domestic leases on standard commercial equipment, a high-quality template is a practical starting point. Legal review is strongly recommended when the equipment value exceeds $100,000, the lease term is longer than three years, the lessee is a regulated entity such as a healthcare provider or government contractor, or the arrangement involves cross-border parties or equipment operating in multiple jurisdictions. A 1–2 hour attorney review typically costs $300–$800 and is well worth the investment for high-value or complex arrangements.\n",{"question":432,"answer":433},"What is a hell-or-high-water clause in an equipment lease?","A hell-or-high-water clause requires the lessee to make all rent payments unconditionally — even if the equipment breaks down, is damaged, or becomes unusable. It is a standard feature in equipment finance leases and many net leases, reflecting the fact that the lessor has financed the acquisition of the asset and must recover that cost regardless of operational issues. Lessees should ensure their maintenance obligations and risk-of-loss provisions align with a hell-or-high-water clause before agreeing to it.\n",[435,439,443,447],{"industry":436,"icon_asset_id":437,"specifics":438},"Manufacturing","industry-manufacturing","Net leases on CNC machines, presses, and assembly equipment give manufacturers direct control over maintenance schedules and third-party service contracts, which directly affect production uptime and warranty compliance.",{"industry":440,"icon_asset_id":441,"specifics":442},"Construction","industry-construction","Cranes, excavators, and heavy-lift equipment are typically leased on net terms for project durations of 12–36 months, with lessee-borne insurance and fuel costs keeping base rent lower than full-service alternatives.",{"industry":444,"icon_asset_id":445,"specifics":446},"Healthcare","industry-healthtech","Imaging systems and diagnostic equipment leases must address FDA regulatory compliance, manufacturer service certification requirements, and the impact of equipment downtime on patient care obligations alongside standard net lease terms.",{"industry":448,"icon_asset_id":449,"specifics":450},"Transportation and Logistics","industry-logistics","Fleet vehicle and trailer net leases assign maintenance, licensing, and DOT compliance to the lessee, with lessor exposure limited to title ownership — a structure that scales efficiently across large fleets.",[452,455,458,461],{"vs":240,"vs_template_id":453,"summary":454},"equipment-rental-agreement-D1151","An equipment rental agreement is a short-term, often month-to-month arrangement where the lessor typically retains maintenance and insurance responsibilities and the lessee pays a higher daily or weekly rate. A net equipment lease is a longer-term commitment — usually 12 months or more — with operating costs shifted to the lessee in exchange for lower base rent. Use a rental agreement for temporary or project-based needs; use a net lease for ongoing operational requirements.",{"vs":248,"vs_template_id":456,"summary":457},"triple-net-lease-agreement-D1202","A triple net lease agreement is primarily used for commercial real property — the tenant pays base rent plus property taxes, building insurance, and maintenance costs. A net equipment lease applies the same cost-allocation logic to movable personal property such as machinery and vehicles. The legal frameworks differ: real property leases are governed by landlord-tenant statutes, while equipment leases fall under UCC Article 2A in the United States.",{"vs":89,"vs_template_id":459,"summary":460},"vehicle-lease-agreement-D1153","A vehicle lease agreement is a specialized equipment lease designed for automobiles and commercial vehicles, with provisions for mileage limits, wear-and-tear standards, and motor vehicle registration. A net equipment lease is a broader template suited to any category of commercial equipment, including machinery, technology hardware, and industrial assets. Use the vehicle-specific template when the asset is a registered motor vehicle.",{"vs":72,"vs_template_id":462,"summary":463},"D{EQUIPMENT_PURCHASE_AGREEMENT_ID}","An equipment purchase agreement transfers ownership of the asset to the buyer at closing. A net equipment lease retains title with the lessor throughout the lease term, with the lessee holding only a possessory right. Leasing preserves capital and keeps the asset off the buyer's balance sheet under some accounting treatments, while purchasing builds equity and eliminates ongoing rent obligations. The right choice depends on the business's cash position, tax strategy, and how long it needs the equipment.",{"use_template":465,"template_plus_review":469,"custom_drafted":473},{"best_for":466,"cost":467,"time":468},"Small businesses leasing standard commercial equipment valued under $50,000 with a domestic counterparty","Free","30–60 minutes",{"best_for":470,"cost":471,"time":472},"Leases on equipment valued $50,000–$500,000, terms over two years, or lessees in regulated industries","$300–$800 for a 1–2 hour attorney review","2–5 business days",{"best_for":474,"cost":475,"time":476},"High-value industrial equipment over $500,000, cross-border arrangements, fleet leasing programs, or IFRS/ASC 842 accounting implications","$1,500–$5,000+","1–3 weeks",[478,483,488,493],{"code":479,"name":480,"flag_asset_id":481,"note":482},"us","United States","flag-us","Equipment leases in the US are governed primarily by UCC Article 2A, which applies to leases of personal property and sets default rules on risk of loss, maintenance, and remedies. Finance leases under Article 2A — where the lessee selects the equipment and the lessor acts as a financing vehicle — carry a hell-or-high-water obligation by statute. State personal property tax on leased equipment varies widely: some states assess the lessor, others the lessee, so the tax allocation clause must be drafted with the equipment's home state in mind.",{"code":484,"name":485,"flag_asset_id":486,"note":487},"ca","Canada","flag-ca","Canada has no direct equivalent to UCC Article 2A; equipment leases are governed by common law contract principles in most provinces, with Quebec governed by the Civil Code. Provincial personal property security legislation (e.g., Ontario's PPSA) requires lessors to register their interest in equipment leased for terms exceeding one year to protect priority against the lessee's creditors. HST and GST treatment of lease payments varies by province and by whether the lease is classified as a capital or operating lease.",{"code":489,"name":490,"flag_asset_id":491,"note":492},"uk","United Kingdom","flag-uk","UK equipment leases are governed by common law and, where applicable, the Supply of Goods and Services Act 1982 and the Consumer Rights Act 2015 for business-to-consumer arrangements. Finance leases and operating leases are treated differently under FRS 102 and IFRS 16 for accounting purposes, affecting whether the asset appears on the lessee's balance sheet. Lessors should ensure their lease clearly falls within the commercial lease exemptions to avoid regulated credit agreement classification under the Financial Services and Markets Act 2000.",{"code":494,"name":495,"flag_asset_id":496,"note":497},"eu","European Union","flag-eu","EU member states each have their own commercial leasing frameworks, with no unified regulation directly governing equipment leases. IFRS 16, which applies to listed companies across the EU, requires most leases over 12 months to be recognized on the lessee's balance sheet as right-of-use assets, affecting financial ratios and debt covenants. VAT treatment of lease payments varies by member state and by whether the lease is structured as a service or a financial product. Cross-border leases within the EU should specify a governing law clause designating a single member state's law.",[241,254,237,499,500,501,502,503,504,505,506,507],"exclusive-lease-agreement-D12808","purchase-order-D1411","bill-of-sale-D1229","maintenance-service-agreement-D12711","lease-agreement-D1179","independent-contractor-agreement-D160","non-disclosure-agreement-nda-D12692","letter-of-intent_acquisition-of-business-D5197","personal-guarantee-D405",{"emit_how_to":193,"emit_defined_term":193},{"primary_folder":99,"secondary_folder":510,"document_type":511,"industry":512,"business_stage":513,"tags":514,"confidence":520},"real-estate-and-leases","agreement","general","all-stages",[515,516,517,518,519],"lease","contract","operations","equipment","net-lease",0.95,"\u003Ch2>What is a Net Equipment Lease?\u003C/h2>\n\u003Cp>A \u003Cstrong>Net Equipment Lease\u003C/strong> is a legally binding agreement in which a lessee obtains the right to use equipment owned by a lessor for a defined period, paying base rent plus assuming financial responsibility for some or all operating costs — commonly maintenance and repairs, insurance, and applicable taxes. Unlike a gross lease where the lessor bundles those costs into a higher all-in rate, the net structure unbundles them, giving the lessee direct control over how the equipment is serviced and insured while lowering the base rent payment. The more cost categories the lessee absorbs, the closer the arrangement moves toward a triple-net structure where the lessor's only obligation is to deliver a functioning asset at the start of the term.\u003C/p>\n\u003Cp>Net equipment leases are governed in the United States by UCC Article 2A, which establishes default rules on risk of loss, maintenance obligations, and remedies that apply unless the parties contract around them. For accounting purposes, leases that transfer substantially all risks and rewards of ownership are classified as finance leases under IFRS 16 or ASC 842, requiring balance sheet recognition — a distinction that affects how lessees present the arrangement to lenders and investors.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Operating on a handshake or a simple purchase order when leasing high-value equipment exposes both parties to serious financial and legal risk. Without a written net equipment lease, there is no documented agreement on who pays for repairs when a machine breaks down mid-production, whether the lessee's general liability policy actually covers the lessor's asset, or what the lessee owes if the equipment is stolen or destroyed. Courts fill those gaps with statutory defaults — which frequently favor the lessee and leave the lessor without the recovery they priced into the transaction.\u003C/p>\n\u003Cp>For the lessee, an undocumented lease creates equal exposure: no purchase option, no defined return standard, and no cure period before the lessor repossesses equipment the business depends on. A clearly drafted net equipment lease protects both sides — it fixes the rent, defines every cost obligation, sets the insurance floor before delivery, and establishes exactly what must happen at end of term. This template gives you the complete contractual structure to document those terms in under an hour, with a format courts in every major common-law jurisdiction will recognize as a binding commercial agreement.\u003C/p>\n",1781185915404]