Equipment Operating Lease

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

EQUIPMENT OPERATING LEASE AGREEMENT

This Equipment Operating Lease Agreement (the “Agreement”) is made and entered into on this {{day}} day of {{month}}, {{year}} (the “Effective Date”),

BETWEEN:

{{lessor_company_name}}, a company duly incorporated under the laws of [Country, e.g., Nigeria] with company registration number {{lessor_company_registration_number}}, and having its registered office at {{lessor_company_address}} (hereinafter referred to as the “Lessor”);

AND

{{lessee_company_name}}, a company duly incorporated under the laws of [Country, e.g., Ghana] with company registration number {{lessee_company_registration_number}}, and having its registered office at {{lessee_company_address}} (hereinafter referred to as the “Lessee”).

1. Lease of Equipment

The Lessor hereby agrees to lease to the Lessee, and the Lessee hereby agrees to lease from the Lessor, the equipment described in Schedule A attached hereto (the “Equipment”). The Equipment shall at all times remain the sole and exclusive property of the Lessor.

The location for the Equipment during the Lease Term shall be {{equipment_location}}.

2. Lease Term

The term of this Agreement shall commence on the Effective Date and shall continue for a period of {{lease_term_months}} months (“Lease Term”), expiring on {{expiry_date}}.

Upon the expiration of the Lease Term, this Agreement shall automatically terminate unless renewed by mutual written agreement of both parties.

3. Lease Payments

The Lessee shall pay to the Lessor a monthly lease payment of {{currency}} {{monthly_lease_payment}} ({{monthly_lease_payment_words}}) for the use of the Equipment, payable in advance on the {{payment_day_of_month}} day of each calendar month.

All payments shall be made by {{payment_method}} to the Lessor’s nominated bank account: {{lessor_bank_name}}, Account Name: {{lessor_account_name}}, Account Number: {{lessor_account_number}}.

A late payment penalty of {{late_payment_penalty_percentage}}% per month shall be applied to any outstanding amount not paid within {{grace_period_days}} days of the due date.

4. Maintenance and Repairs

The Lessee shall, at its own expense, maintain the Equipment in good operating condition and repair, reasonable wear and tear excepted. This includes all routine maintenance, inspections, and minor repairs.

Major repairs and replacements, as defined in Schedule B, shall be the responsibility of the {{party_responsible_for_major_repairs}}.

The Lessee shall notify the Lessor immediately of any damage, defect, or need for major repair to the Equipment.

5. Insurance

The Lessee shall, at its own expense, obtain and maintain during the Lease Term, comprehensive insurance coverage for the Equipment against all risks of loss or damage in an amount not less than the full replacement value of the Equipment. The Lessor shall be named as an additional insured on such policy.

Proof of insurance shall be provided to the Lessor upon execution of this Agreement and annually thereafter.

6. Use of Equipment

The Lessee shall use the Equipment in a careful and proper manner and shall comply with all applicable laws, regulations, and manufacturer's instructions relating to the use and operation of the Equipment.

The Equipment shall not be used for any illegal purpose or in any manner that would invalidate the insurance coverage.

7. Default

The occurrence of any of the following shall constitute an event of default by the Lessee:

a) Failure to pay any lease payment when due.

b) Breach of any other term or condition of this Agreement.

c) Insolvency or bankruptcy of the Lessee.

Upon an event of default, the Lessor may, at its option, declare the entire remaining balance of the lease payments immediately due and payable, repossess the Equipment, and/or pursue any other remedies available at law or in equity.

8. Governing Law and Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of [Country, e.g., Kenya].

Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration in [City, Country] in accordance with the Rules of the [e.g., Nigerian Arbitration and Conciliation Act] for the time being in force, which rules are deemed to be incorporated by reference into this clause. The language of the arbitration shall be English.

9. Return of Equipment

Upon the expiration or earlier termination of this Agreement, the Lessee shall, at its own expense, return the Equipment to the Lessor at {{return_address}} in the same condition as when received, reasonable wear and tear excepted.

The Lessee shall be responsible for any costs incurred in preparing the Equipment for return, including cleaning and decommissioning.

10. Entire Agreement

This Agreement, including all attached schedules, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, and negotiations, whether oral or written.

Signature Block

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first above written.

LESSOR:

_____________________________

By: {{lessor_authorized_signatory_name}}

Title: {{lessor_authorized_signatory_title}}

LESSEE:

_____________________________

By: {{lessee_authorized_signatory_name}}

Title: {{lessee_authorized_signatory_title}}