Furniture Lease Agreement

Furniture Lease Agreement

Agreement made on the day of , 20, between , a corporation organized and existing under the laws of the State of , with its principal office located at , referred to herein as Lessor and of , referred to herein as Lessee.

I. Description of Leased Furniture

Lessor leases to Lessee, and Lessee leases from Lessor, the following described furniture:

II. Term of Lease

The term of this lease shall begin on and end on .

Lessee may terminate this agreement before the end of the term under the following conditions:

Lessee shall pay Lessor for any such early termination the sum of $.

Lessor may terminate this Lease before the end of the term of the Lease under the following conditions:

On such early termination, Lessor shall be entitled to collect from Lessee the following charges:

III. Lease Payments

Lessee agrees to pay Lessor lease payments of $, payable in monthly installments as follows: $ on the execution of this Lease, to be applied to the last month's rental, with the first monthly payment of $ to be paid on , and subsequent payments of $ per month to be paid on or before the day of each subsequent month. A late payment charge of $ shall be imposed for every payment not made on or before the due date.

IV. Security Deposit

On the execution of this Agreement, Lessee shall deposit with Lessor $ as security for the faithful performance by Lessee of the terms and conditions of this Lease. If Lessee fully complies with the terms and conditions, the deposit shall be refunded to Lessee on termination of this Lease. Should Lessee fail to comply with any of the terms, such deposit may be applied by Lessor to the payment of the costs and expenses, including attorney's fees, incurred by Lessor because of such default. Such deposit shall not be considered as payment for lease payments due, nor shall it release Lessee from the obligation to make such lease payments or from any of the obligations assumed by Lessee.

V. Charges, Taxes & Fees

On the execution of this lease, Lessee shall pay Lessor the following charges, taxes, and fees:

A. Delivery charge: $;

B. Pick-up charge: $;

C. Taxes: $;

D. Fees: $; and

E. Other charges: $;

VI. Maintenance and Repairs

Lessee shall be responsible for the following maintenance and repairs of the leased furniture:

Lessor shall be responsible for the following maintenance and repairs of the leased furniture:

VII. Insurance

Insurance covering loss by in the amount of $ will be maintained by Lessee with an insurance company acceptable to Lessor, the premiums of which shall be paid by Lessee. If Lessee shall fail to pay for or provide any such insurance, Lessor, at Lessor's option, may pay for such insurance and add the amount paid to the next monthly lease payment due from Lessee. Lessee will promptly notify Lessor of any loss, damage, or incident that may give rise to an insurance claim.

VIII. Risk of Loss

Lessee assumes all risks of loss or damage to any portion of the furniture leased not covered by insurance. All replacements, repairs, or substitution of parts or equipment shall be at the cost and expense of Lessee. Lease payments on the leased furniture shall not be prorated or abated while it is being repaired.

IX. Warranties

The leased furniture is subject to the following express warranties:

Lessor makes no other warranties, express or implied, as to the furniture leased, and assumes no responsibility for its condition.

X. Security Interest

Lessor hereby reserves a security interest in and to said furniture in order to secure performance of Lessee's obligations under this Lease. Lessor incorporates by reference all rights of a secured party as set forth in Article Nine of the Uniform Commercial Code of the State of .

XI. Option to Purchase

Lessee is granted the option to purchase any particular item of the furniture leased, provided Lessee gives written notice to Lessor of its intention to exercise the option at least days prior to the date Lessee intends to exercise the option. If the option is exercised at the termination of the Lease, the price of each item shall be as follows:

If the option is exercised at least months prior to the end of the term of the Lease, the price of each item will be as follows:

Should Lessee exercise this option, % of the sum paid as lease payments shall be applied to the purchase price of the item of furniture, and, on receipt of the balance of the purchase price by Lessor, together with a sum equal to any new or applicable unpaid sales and use taxes, Lessor will transfer title of the item of furniture to Lessee.

XII. Delivery and Acceptance of Furniture

Lessor shall deliver the leased furniture not later than . On delivery, Lessee shall immediately inspect each item of furniture delivered. Unless Lessee notifies Lessor in writing within days from the time of actual delivery, specifying any defect or objection to the furniture, Lessee will be conclusively presumed to have fully inspected and acknowledged that the furniture is in good condition, and that Lessee is satisfied with and has accepted the furniture in good condition.

XIII. Return of Furniture

On the termination of the Lease for any reason whatsoever, Lessee shall return the leased furniture to Lessor in as good condition as when received, reasonable wear and tear excepted. The standard for determining unreasonable or excessive wear and use of the leased furniture shall be as follows:

XIV. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.