Fortress Dispensers Rental Agreement

Lease Agreement for Fortress Dispensers Rental Program

This Lease Agreement ("Agreement") is made on [Insert Date] between:

Lessor:

Australian First Aid Distributions Pty Ltd (ABN: 54 153 377 185), trading as Fortress Dispensers, with its registered office at [Insert Address, Bendigo, VIC], hereinafter referred to as "Fortress Dispensers".

Lessee:

[Insert Lessee Name] ("Lessee"), with its principal place of business at [Insert Lessee Address], hereinafter referred to as the "Customer".

Recitals:

Whereas, Fortress Dispensers provides vandal-proof soap dispensers and related services through its Rental Program;

Whereas, the Customer wishes to lease Fortress Dispensers for use in their facilities under the terms outlined below;

Now, therefore, the parties agree as follows:

1. Lease Term and Renewal

1.1 Initial Term: The Customer agrees to lease the Fortress Dispensers ("Equipment") for an initial term of 3 years ("Initial Term"), commencing on [Insert Start Date] and ending on [Insert End Date].

1.2 Renewal Option: Upon completion of the Initial Term, the Customer may:

(a) Return the Equipment to Fortress Dispensers at no additional cost, terminating this Agreement; or

(b) Continue the lease for an additional 3-year term ("Renewal Term") at the same rental price, subject to a cost escalation clause (Clause 1.3). The Customer must notify Fortress Dispensers in writing at least 30 days prior to the end of the Initial Term of their intent to continue or return the Equipment.

1.3 Cost Escalation Clause: In the interest of transparency, if the Customer opts to continue the lease for a Renewal Term, Fortress Dispensers may adjust the rental price to account for significant cost increases (e.g., soap, freight). Any increase will be capped at no more than 10%, ensuring the Customer can lock in their costs for another 3 years without unexpected hikes.

2. Rental Fee and Payment

2.1 Rental Fee: The Customer agrees to pay Fortress Dispensers a fixed rental fee of $15.00 per month per dispenser ("Rental Fee"), which is all-inclusive, covering the Equipment, soap, freight, repairs, and maintenance. There are no hidden extras.

2.2 Payment Terms: The Rental Fee is payable monthly in advance, due on the first business day of each month. Payments shall be made via [Insert Payment Method, e.g., direct debit, bank transfer] to the account specified by Fortress Dispensers.

2.3 Late Payment: If payment is not received within 7 days of the due date, Fortress Dispensers may charge a late fee of 2% of the overdue amount per month, and may suspend services until payment is received.

3. Equipment and Soap Provision

3.1 Equipment: Fortress Dispensers shall provide the Customer with the agreed number of Fortress Dispensers, as specified in Schedule A. The Equipment remains the property of Fortress Dispensers at all times.

3.2 Soap Provision: Fortress Dispensers shall provide Antibacterial Fortress Foam Soap for use with the Equipment as part of the all-inclusive Rental Fee. The soap is clinically tested with a gentle pH of 5-5.5, ensuring safe and effective hand hygiene.

3.3 Excessive Soap Use: To ensure fair usage and sustainability of the Rental Program, the Customer agrees not to engage in excessive soap use. Based on extensive data across Australia, the average soap consumption for a dispenser in a public toilet setting is 2-3 cartons per year. Excessive use is defined as the average soap consumption across all dispensers under this lease exceeding 4 cartons per dispenser per year, which is significantly above typical usage patterns for similar facilities. Soap usage will be calculated as an average across the total number of dispensers leased by the Customer, rather than per individual dispenser. If excessive use is detected:
(a) Fortress Dispensers will notify the Customer in writing, providing details of the average usage across all dispensers and an opportunity to adjust consumption within 30 days.
(b) If excessive use continues after notification, Fortress Dispensers reserves the right to charge an additional fee of $55 per carton for the average number of cartons consumed above the 4-carton threshold across all dispensers under lease, to cover the additional soap costs. For example, if the average usage across 10 dispensers is 5 cartons per dispenser per year, the excess usage is 1 carton per dispenser (10 cartons total), resulting in an additional fee of $550 per year.
(c) Any additional fees will be invoiced monthly with the Rental Fee, and Fortress Dispensers will work with the Customer to address usage patterns to avoid future charges. This clause ensures the Rental Program remains viable for all customers while maintaining the all-inclusive pricing structure.

4. Maintenance, Repairs, and Freight

4.1 All-Inclusive Service: Fortress Dispensers shall cover all maintenance, repairs, and freight costs associated with the Equipment as part of the Rental Fee, ensuring no additional expenses for the Customer.

4.2 Customer Responsibilities: The Customer shall use the Equipment in accordance with its intended purpose and shall not modify, tamper with, or misuse the Equipment. Damage due to misuse or negligence may result in additional charges, to be determined by Fortress Dispensers.

4.3 Lifetime Warranty: Fortress Dispensers provides a lifetime warranty on the Equipment. If the Equipment fails due to vandalism or manufacturing defects (when installed correctly), Fortress Dispensers will replace it free of charge.

5. Termination

5.1 Termination by Customer: The Customer may terminate this Agreement at the end of the Initial Term or Renewal Term by providing written notice at least 30 days prior to the term’s end and returning the Equipment in good condition, subject to normal wear and tear.

5.2 Early Termination by Customer: If the Customer terminates this Agreement before the end of the Initial Term or Renewal Term, they shall be liable for a termination fee equal to 50% of the remaining Rental Fees for the term, plus the cost of returning the Equipment.

5.3 Termination by Fortress Dispensers for Non-Payment: Fortress Dispensers may terminate this Agreement with 30 days’ written notice if the Customer fails to make payments as required under Clause 2. Upon termination for non-payment:
(a) The Customer shall immediately return all Equipment to Fortress Dispensers.
(b) If the Equipment is returned in full within 14 days of termination notice, the Customer shall be liable for a termination fee equal to 50% of the remaining Rental Fees for the Initial Term or Renewal Term, calculated based on the number of months remaining at the time of termination.(c) If the Equipment is not returned in full within 14 days of termination notice, the Customer shall be charged the normal retail price of $165 (including GST) per unit for each dispenser not returned, in addition to the termination fee outlined in Clause 5.3(b). This charge reflects the replacement cost of the Equipment and ensures Fortress Dispensers can maintain the Rental Program for other customers.
(d) Any outstanding fees, including termination fees and charges for unreturned Equipment, shall become due immediately upon termination.

6. Liability and Indemnity

6.1 Limitation of Liability: Fortress Dispensers shall not be liable for any indirect, incidental, or consequential damages arising from the use of the Equipment, except as required by law (e.g., under the Australian Consumer Law).

6.2 Indemnity: The Customer agrees to indemnify Fortress Dispensers against any claims, damages, or losses arising from misuse of the Equipment or breach of this Agreement, except where caused by Fortress Dispensers’ negligence.

7. Dispute Resolution

7.1 Governing Law: This Agreement is governed by the laws of Victoria, Australia.

7.2 Dispute Resolution: Any disputes arising under this Agreement shall first be addressed through good-faith negotiation between the parties. If unresolved within 30 days, the dispute shall be referred to mediation in Victoria, in accordance with the rules of the Resolution Institute. If mediation fails, the dispute may be escalated to the courts of Victoria.

8. General Provisions

8.1 Entire Agreement: This Agreement constitutes the entire understanding between the parties and supersedes all prior agreements or understandings.

8.2 Amendments: Any amendments to this Agreement must be made in writing and signed by both parties.

8.3 Notices: Notices under this Agreement shall be sent to the addresses listed above via email or registered post.

8.4 Force Majeure: Fortress Dispensers shall not be liable for delays or failures to perform due to events beyond its reasonable control (e.g., natural disasters, supply chain disruptions).

Schedule A: Equipment Details

Number of Dispensers: [Insert Number]

Start Date: [Insert Start Date]

Signed by the Parties:

For Australian First Aid Distributions Pty Ltd (Trading as Fortress Dispensers):

Name: [Insert Name]

Title: [Insert Title]

Signature: ___________________________

Date: ___________________________

For the Customer: