Equipment Lease Agreement

EQUIPMENT LEASE AGREEMENT

This Equipment Lease Agreement ("Lease Agreement") is made at Andaman and Nicobar Islands on ________

BY AND BETWEEN

________ residing at the following address: ________, Email: ________ (hereinafter referred to as "Lessor" which expression shall mean and include its legal heirs, administrators and permitted assigns) of the FIRST PARTY

AND

________ residing at the following address: ________, Email: ________(hereinafter referred to as "Lessee" which expression shall mean and include its legal heirs, administrators and permitted assigns) of the SECOND PARTY

(Lessor and Lessee are hereinafter individually referred to as "Party" and collectively as "Parties")

WHEREAS:

A. The Lessor is the owner and in physical possession of the following equipment: ________.

B. Lessee had approached the Lessor for a grant of lease in respect of the Equipment and the Lessor has agreed to lease out the same to the Lessee.

C. The Lessor and the Lessee are now desirous of executing this Lease Agreement to record the terms and conditions governing the lease of the Equipment as set forth hereinafter.

D. The lease of the Equipment shall commence on ________ and shall continue for a period of: ________ ("Lease Period") unless terminated earlier in accordance with the terms hereof.

NOW THEREFORE THIS AGREEMENT WITNESSETH AND IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS UNDER:

1. INTERPRETATION

In this Lease Agreement, unless the context otherwise requires, the following rules of interpretation shall apply:

(a) Words referring to one gender include every other gender.

(b) Words referring to a singular number include the plural, and words referring to a plural include the singular.

(c) Words referring to a person or persons include companies, firms, corporations, organisations and vice versa.

(d) Headings and titles are included in this Agreement for convenience only and shall not affect the interpretation of this Agreement.

(e) Each Party must, at its own expense, take all reasonable steps and do all that is reasonably necessary to give full effect to this Agreement and the events contemplated by it.

(f) Any obligation on a Party not to do something includes an obligation not to allow that thing to be done.

2. EQUIPMENT DETAILS

The details of the Equipment leased under this Agreement ("Equipment") are as follows:

(a) Equipment name: ________

(b) Equipment type: ________

(c) Brand and model: ________

(d) Serial number: ________

(e) Age of Equipment: ________

(f) Capacity: ________

(g) Condition at the time of lease:

________

3. GRANT OF LEASE

The Lessor hereby grants to the Lessee the right to use the Equipment for the term of this Agreement, subject to all the terms and conditions of this Agreement. The Lessee shall have the right to use the Equipment in a reasonable and prudent manner in accordance with the manufacturer's specifications and any applicable laws and regulations.

4. PURPOSE

(a) The Lessee shall use the Equipment only for the following purpose:

________

(b) The Equipment shall be exclusively used by Lessee. The Equipment shall not be used for any purposes other than as specified above unless otherwise agreed by the Lessor in writing. The Lessee shall not use the Equipment for any unlawful purposes and shall forthwith notify the Lessor if it becomes aware of any illegal activities being conducted using the Equipment.

5. RENT

(a) The Lessee has agreed to pay the Rent of Rs. ________ (________) ("Rent") per hour. The Rent is inclusive of GST and applicable taxes.

(b) The payment shall be made in the following interval: Daily.

(c) The payment of the Rent shall be executed via Internet Banking (NEFT/RTGS/IMPS) with the following bank details:

________

(d) The lease Rent as specified above shall be subject to an increase and enhancement after the following period:

________

(e) The Rent will be increased at the rate of ________% (________ percent) over the prevailing Rent at the discretion of the Lessor.

(f) It is hereby agreed that if a default is made in the payment of Rent by the Lessee for ________ (________) consecutive business days, the Lessor shall be entitled, in addition to other rights and remedies available to the Lessor under this Lease Agreement and applicable laws, at its sole discretion to terminate the lease granted under this Lease Agreement and to take possession of the Equipment as the full and absolute owner thereof without regard to the time elapsed.

(g) Provided, however, a notice in writing shall be given by the Lessor to the Lessee of his intention to terminate the lease and to take possession of the Equipment. In the event the Lessee pays the arrears of Rent within a period of ________ (________) business days from the issue of the notice by the Lessor, the Lessor shall not be entitled to terminate the lease of the Equipment. However, if the arrears of Rent are not paid by the Lessee, within a period of ________ (________) business days from the issue of the notice by the Lessor, the lease shall stand automatically terminated with no further acts required on part of the Lessor.

(h) The Parties agree that stamp duty and registration charges on this Lease Agreement shall be borne by Lessor.

6. TERM OF THE LEASE

The lease of the Equipment shall commence on ________ and shall continue for a period of: ________ ("Lease Period") unless terminated earlier in accordance with the terms hereof. Upon expiry of the Lease Period, the lease shall be renewable on the same terms and conditions provided before the expiry of the Lease, Lessee gives advance notice of: ________. If no notice of renewal is issued by the Lessee, the lease shall terminate upon the expiry of the Lease Period.

7. OWNERSHIP

Except for Lessee's right of use under this Lease, the Equipment is and shall at all times be and remain the exclusive property of the Lessor, even if installed in or attached to real property by the Lessee. The Lessee shall have no right, title, or interest in or to the Equipment except as expressly set forth in this lease.

8. SUBLEASE, ASSIGNMENT

The Lessee shall not sublet, assign, or otherwise part with the possession of the Equipment either in part or in full without the consent in writing of the Lessor. Any assignment, sub-lease, or license without the prior written approval of the Lessor shall be null and void and in such an event the Lessor shall be entitled to terminate the lease at its sole discretion.

9. SECURITY DEPOSIT

(a) The Lessee has paid to the Lessor an amount of Rs. ________ (________) as an interest-free refundable Security Deposit ("Security Deposit"). The Lessor acknowledges receipt of the Security Deposit.

(b) The Security Deposit shall be refunded without any interest simultaneously with the delivery of possession of the Equipment by the Lessee to the Lessor upon expiry of the Lease Period or earlier termination of this Lease Agreement in accordance with the terms hereof subject to there being no outstanding dues by the Lessee. The Lessor shall be entitled to adjust any outstanding amounts of Rent, interest, or other charges due from the Lessee and any amounts spent on repairing damages caused to the Equipment by the Lessee against the Security Deposit prior to refunding the same to the Lessee. In the event the amount of the Security Deposit is not sufficient to cover the outstanding amounts due to the Lessor, the Lessee shall be liable to pay all such outstanding amounts within a period of 15 (fifteen) business days from receipt of a written demand from the Lessor.

(c) In the event the Lessor sells the Equipment or assigns all rights under this Lease Agreement to a third party ("New Lessor"), the Security Deposit shall also be transferred to the New Lessor and the Lessor shall thereafter not have any liability towards the return of the Security Deposit to the Lessee.

10. COMPLIANCE WITH RULES

The Lessee shall comply with all applicable laws, rules, and regulations of the local government authorities in relation to the Equipment usage.

11. POSSESSION

(a) Lessee shall be handed over possession of the Equipment simultaneously with the execution of this Lease Agreement provided an amount equivalent to the Security Deposit and first month's lease Rent has been delivered to the Lessor.

(b) In the event the Lessor is unable to hand over possession of the Equipment to the Lessee on the date as specified above, due to any unforeseen circumstances, Lessor shall not be liable for any damages, but Lessee will not be liable to pay Rent until the possession is given.

12. DELIVERY

(a) The Equipment will be delivered at the aforementioned Lessor address.

(b) The Lessor will be liable to pay the following penalty for any delay in the delivery of the Equipment: ________.

(c) It is Lessor's duty to ensure that the Equipment is delivered in the same condition as last inspected by the Lessee (or, if the inspection is not conducted, the date of execution of this Agreement).

(d) It is the duty of the Lessee to take possession of the Equipment at the aforementioned Lessor address on the aforementioned date. If the Lessee fails to take possession, then the risk of loss passes to the Lessee from the Delivery Date.

13. INSTALLATION

(a) Before installing the Equipment, necessary permits from the concerned authorities shall be taken by the Lessee.

(b) Installation shall be performed by the Lessee in a professional and workmanlike manner in conformance with all recommendations of the manufacturer including any specifications and requirements of power, ventilation, and other necessary resources, and in compliance with good construction and engineering practices.

(c) The installer and operator should have a thorough understanding of the equipment being installed, including operating instructions, specifications and any safety precautions that must be taken.

(d) The installation process may require the use of specialized tools and equipment, and it is important to ensure that the correct tools are used for installation and operations.

(e) The Equipment must be installed in a safe manner, considering any potential safety hazards and ensuring that proper safety measures are in place.

(f) After the installation, it is important to test and inspect it to ensure that it is functioning properly and in accordance with all relevant regulations and standards.

14. REPAIRS

(a) The Parties agree that day-to-day minor repairs shall be carried out by the Lessee at its own cost, and any major repairs shall be attended to by the Lessor. In the event of the Lessor failing to carry out the repairs on receiving notice from the Lessee, the Lessee shall undertake the necessary repairs and the Lessor will be liable to reimburse costs incurred by the Lessee within a period of ________ (________) business day.

(b) The minor repair to the Equipment includes:

________

15. INSPECTION

(a) The Lessor and/or its authorised personnel shall have the right to enter upon the premises of the Lessee and inspect the Equipment or any part thereof with prior written notice of: ________, at any time during the following hours: ________.

(b) Provided, however, in case of an emergency, no prior notice shall be required to be given.

16. OBLIGATIONS OF LESSEE

(a) The Lessee is responsible for using the Equipment in accordance with the terms of the Lease and any applicable laws and regulations.

(b) The Lessee shall conduct regular inspections of the Equipment to identify any issues or potential problems. This includes visual inspections of the Equipment's interior and exterior, as well as functional tests to ensure that it is operating correctly.

(c) Regularly cleaning the Equipment as per the manual or other documents provided by the manufacturer, or any instructions provided by the Lessor.

(d) Lessee shall pay all charges for gas, water, steam, electricity, etc. to be used in connection with the Equipment, including charges for installation of such services.

(e) The Equipment should be regularly serviced and maintained to prevent breakdowns and extend its lifespan. This may include tasks such as:

________

(f) The Lessee shall use the Equipment along with its accessories and fittings in a careful and responsible manner and shall hand over the Equipment to the Lessor in the same condition (reasonable wear and tear excepted).

(g) The Lessee shall comply with any applicable regulations related to the use and operation of the equipment, such as environmental regulations, safety standards, and equipment usage standards in the locality where the Equipment is operated.

(h) The Lessee must store and handle the Equipment in a safe and secure manner, taking care to avoid any damage or theft.

(i) Lessee agrees that it shall not damage the Equipment and shall be responsible for any damages sustained to the Equipment as a result of any activity on the part of Lessee's personnel including employees, operators, etc.

(j) Lessee shall not destroy, deface, damage, impair, or remove any part of the Equipment or Equipment therein belonging to the Lessor nor permit any person to do so.

(k) If the Lessee identifies any issues or problems with the Equipment, should immediately report it to the Lessor.

(l) In the event of loss or damage, the Lessee at its option shall:

(I) Repair the Equipment to return it to its good working condition.

(II) Replace the Equipment with a like Equipment of the same or later model, in good condition and working order, free and clear of all liens and encumbrances and grant the Lessor the right to perfect its security interest in the replacement Equipment. Such replacement shall be submitted in this lease by appropriate endorsement.

(III) Pay the Lessor the replacement value at the then-existing market prices.

(IV) The Lessee shall have no responsibility or obligations if such loss or damage to the property is caused by Lessor, its employees, or agents.

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(________) 228825 85588 228552 2552 522 25225 5225858 85885 252 82 52858525 225 252 585822222 85588 82 8555825 252 82 5 282282 252225.

(________) 228825 85588 2528852 5258225882 8522252 82 58588822 522 85555222 82588828 25 8222282822 8825 252 2525258255258 525 8288258 225 522 585822222 5285225 8525828 525 82588828.

18. REPRESENTATIONS AND WARRANTIES OF LESSOR

(a) Title to the Equipment - The Lessor has a clear and marketable title to the Equipment and has the right, power, and authority to grant to the Lessee the lease of the Equipment.

(b) Taxes & Outgoings –The Lessor has paid and shall pay all existing and future taxes, fees, and similar outgoings in respect of the Equipment.

(c) Quite enjoyment - The Lessor warrants that the Lessee will have quiet enjoyment of the Equipment during the lease period, free from any interference from the Lessor or any third party.

(d) Non-infringement - the use of equipment by Lessee will not infringe on any patent, trademark, copyright, or other proprietary rights of any third party.

(e) Except as specified above, the Lessor makes no representations and warranties including but not limited to any express or implied warranties, with regard to the condition of the Equipment and the Lessee is taking the Equipment on an as-is-where-is basis.

19. REPRESENTATIONS AND WARRANTIES OF THE LESSEE

(a) The Lessee hereby covenants, warrants, and represents the Lessor as follows:

(I) Use of Equipment - use the equipment in accordance with this Lease Agreement and any applicable laws and regulations.

(II) Non-infringement - the Lessee represents and warrants that the use of Equipment will not infringe on any patent, trademark, copyright, or other proprietary rights of any third party.

(III) Lease Rentals - to pay the Rent on the due dates and in the manner specified in this Lease Agreement and to observe and abide by all the terms and conditions as set out in this Lease Agreement.

(IV) Good condition: always keep the Equipment in a good manner and fully functional.

20. RETURN OF THE EQUIPMENT

(a) The Equipment will be returned at the aforementioned Lessor address.

(b) Lessee shall return the Equipment within ________ (________) business days after the termination of this Lease Agreement.

(c) The Lessee will be liable to pay the following penalty for any delay in the delivery of the Equipment: ________.

(d) It is the duty of the Lessor to take possession of the Equipment at the aforementioned Lessor address on the aforementioned date. If the Lessor fails to take possession, then the risk of loss passes to the Lessor from the Return Date.

21. OPTION TO PURCHASE

(a) At the end of the Lease Term, the Lessee shall have the option to purchase the Equipment at ________ (________).

22. INSURANCE

(a) The Lessor shall be responsible for insuring the Equipment.

(b) The insurance coverage shall be of: Full coverage insurance, and the minimum IDV shall be of Rs. ________ (________).

(c) Upon request a copy of the insurance certificate shall be provided to the Lessee within 3 (three) business days.

(d) Should the Lessor choose not to insure the Equipment; the Lessor is solely responsible for any damages and/or liability.

23. RIGHT TO MORTGAGE

Lessor reserves the right to mortgage or otherwise place a lien on the Equipment and Lessee agrees to accept the Equipment subject and subordinate to any such mortgage or lien. In the event the Lessor has already mortgaged the Equipment, it shall ensure that it obtains the consent of the mortgagor, if required, for the lease of the Equipment.

24. SPECIAL CONDITIONS

The Lessee agrees that it shall not without prior written permission of the Lessor carry out the following with the Equipment:

________

25. DEFAULT

A breach of any of the terms of this lease by the Lessee which is not cured within the period of: ________, from receipt of notice from the Lessor shall be considered a default under this Lease Agreement. Breaches may include but are not limited to, failure to pay the lease Rent, engaging in any unlawful activity, damaging, or otherwise destroying Equipment or any accessories therein, or violation of any part or sub-part of this Lease.

26. TERMINATION

(a) The Lessor shall also be entitled to terminate the lease without any notice in the event of a default committed by the Lessee which is not cured within a period of: ________, from the date of receipt of a written notice in that regard from the Lessor.

(b) Lessor shall be entitled to terminate this Lease Agreement by giving written notice of: ________ to the Lessee of its intention to terminate.

(c) Lessee shall be entitled to terminate this Lease Agreement by giving written notice of: ________ to the Lessor of its intention to terminate.

(d) Upon any termination of the Lease for any reason whatsoever, the Lessee shall return the Equipment to the Lessor simultaneous with the Lessor refunding to the Lessee the Security Deposit after adjusting all monies due and payable by the Lessee in terms of this Lease Agreement.

27. INDEMNITY

(a) Each Party shall defend, indemnify, and hold harmless the other Party from and against any claim, liability, demand, loss, damage, judgment, or other obligation or right of action, which may arise as a result of the breach by such Party of this Lease Agreement, or any misrepresentation made herein.

(b) Lessee shall indemnify the Lessor and hold the Lessor harmless from all loss and damages to the Equipment during the Lease Term.

(c) Lessee shall indemnify and hold the Lessor harmless from and against all fines, forfeitures, seizures, confiscations, and penalties arising out of any violations.

(d) Lessee shall indemnify and hold the Lessor harmless in all liability for injury, disability, and death of workmen and other persons caused by the operation, use, control, handling, or transportation of the Equipment during the Lease Term.

(e) Lessee bears all risk of loss or damage to property or injury to person incident to the operation of the Equipment during the Lease Term.

28. ASSIGNMENT BY LESSOR

The Lessor shall be entitled to sell, assign, convey or transfer in any manner his interest in the Equipment or his rights and obligations under this Lease Agreement to any third party without the written consent of the Lessee, provided that he ensures that the prospective purchaser/assignee agrees to be bound by the terms of this Lease Agreement.

29. AMENDMENT

The terms of this Lease Agreement shall not be altered or added to, nor shall anything be omitted therefrom except by means of a Supplementary Lease Agreement in writing duly signed by both the Parties hereto.

30. GOVERNING LAW

This Lease Agreement shall be governed by the laws of India.

31. DISPUTE RESOLUTION

(a) Except as otherwise specifically provided in this Lease Agreement, the following provisions apply if any dispute and difference arise between the Parties, arising out of or in relation to/connection with this Lease Agreement ("Dispute").

(b) The dispute will be deemed to arise when one Party serves on the other Party a notice stating the nature of the Dispute ("Notice of Dispute").

(c) The Parties hereto agree that upon serving a Notice of Dispute, they will use all reasonable efforts to resolve the Dispute between themselves through negotiations.

(d) A dispute which cannot be solved by negotiations shall be referred to arbitration by a sole arbitrator to be appointed jointly by the Parties.

(e) The arbitration proceedings shall be held in ________ in accordance with the provisions of applicable laws and regulation prevailing in ________ or any statutory re-enactment or modification thereof for the time being in force.

(f) The Parties agree that the arbitration award shall be final and may be enforced as a decree.

(g) The Parties further agree that subject to the above only the competent courts at ________ shall have jurisdiction in all matters arising hereunder.

32. NOTICES

(a) Any notice or other information/document required or authorised by this Lease Agreement to be given shall be given in writing, in English and by:

(I) By sending to the email; or

(II) Delivering it by hand (a written acknowledgement in receipt thereof shall be sufficient evidence that the notice or other information has been duly given); or

(III) Sending it by nationally recognized courier;

to the relevant Parties at the addresses specified in the name clause of this Lease Agreement above.

33. SEVERABILITY

If at any time, any provision of this Lease Agreement shall become or be held illegal, invalid, or unenforceable in any respect under any law, then the legality, validity or enforceability of the remaining provisions shall not in any way be thereby affected or impaired.

34. WAIVER

No failure on the part of either Party to exercise, and no delay on the part of either Party in exercising any right hereunder, shall operate as a waiver thereof, nor shall any single or partial exercise of any such right preclude any other or future exercise thereof or the exercise of any other right. The remedies herein are cumulative and not exclusive of any remedies provided by law.

35. COUNTERPARTS

This Lease Agreement may be executed in _____ (To fill in the number of copies of the Lease Agreement which would be printed and signed in original) number of counterparts each of which shall be deemed to be an original.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement:

___________________________

________

___________________________

________