1. Equipment description
The Lessor agrees to purchase and lease to the Lessee the equipment specified in the review summary above.
2. Lease term
Twelve (12) months from the delivery date ("Commencement Date").
3. Lease payments
$50.00/month, due the first business day of each month. Total: $600.00. Payment by check, electronic transfer, or a mutually agreed method.
4. Ownership
Equipment remains the Lessor's property. Lessee shall not sell, sublease, pledge, or encumber it.
5. Care & maintenance
Lessee maintains the equipment in good working condition and bears the cost of consumables. No permanent modifications without written consent.
6. Insurance & liability
Lessee is responsible for loss or damage except normal wear. In a total loss, Lessee pays fair market value.
7. End-of-term options
A) Purchase at agreed fair market value. B) Sell & settle: shortfall paid by Lessee, surplus split 50/50. C) Renewal: 12 months, same terms. Lessor notifies Lessee 30 or more days before the term ends.
8. Tax considerations
Lessor is solely responsible for tax treatment. Lessee makes no representations regarding Section 179. Lease income must be reported.
9. Early termination
60 days written notice. Equipment returned within 14 days, less normal wear.
10. Governing law
State of North Carolina. Iredell County courts.
11. Entire agreement
This is the entire understanding. Modifications require written consent of both parties.