Form 6-7

The client who forms an LLC may also wish to lease a vehicle to the LLC for business use. This form provides for such an arrangement. The agreement may be altered to address additional issues, for example, which party is responsible for providing liability insurance. Consult a tax adviser regarding the tax implications of a vehicle lease arrangement.

Lease Agreement

This agreement (“Agreement”) by and between [name of lessor] (“Lessor”) and [name of lessee LLC], a Texas limited liability company (“Lessee”), provides for the Lessee’s use of the vehicles listed in Exhibit A attached hereto.

1.Vehicles. Lessor is the owner of the vehicles described in Exhibit A (“Vehi­cles”).

2.Lease. In consideration of the Lease Fee (defined below), Lessor grants to Les­see the nonexclusive use of the Vehicles for operating Lessee’s business. Lessor warrants and represents that Lessor owns the Vehicles and has the right to enter into this Agreement.

3.Term. The term of this Agreement shall extend for a period of one year com­mencing on its effective date (defined below) and shall automatically renew for successive one-year terms unless and until terminated by Lessor or Lessee with sixty days’ written notice to the other party (“Term”). Upon the termination of this Agreement, all rights to the Vehicles granted herein shall automatically revert to Lessor.

4.Nonassignability. Neither this Agreement nor any of the rights granted to Lessee under this Agreement may be assigned, delegated, or transferred by Lessee to any person, firm, or corporation, by operation of law or otherwise, without the prior written consent and approval of Lessor.

5.Payment of Lease Fee. The Lease Fee for each year of the Term due to Lessor by Lessee is $[amount] [include additional terms, e.g., an option to pay in monthly installments]. The Lease Fee may be adjusted by Lessor at the beginning of each year of the Term by giving Lessee ninety days’ written notice.

6.Governing Law. This Lease shall be governed by the laws of the state of Texas.

7.Encumbrances. Lessee agrees to keep the Vehicles free of any and all encum­brances.

8.Amendment. This Agreement may be amended or modified only by a written instrument executed by Lessor and Lessee, unless otherwise provided for in this Agreement.

This Agreement is entered into by Lessor and Lessee effective as of [effective date] (“Effective Date”).

Lessor:

   
[Name of lessor]

Lessee:

   
[Name of LLC]

By:      

[Name of managing member or
manager], [title]

Exhibit A

Year:      ____________________________________ 
Make:     ____________________________________    
Model:    ____________________________________ 
VIN:       ____________________________________