in most cases, this will be the owner of the equipment being leased. the equipment at the center of this agreement will need to be well-defined. if this lease type is selected it must be assigned a start date when the lessee will first take possession of the equipment and have a predetermined number of days’ notice of termination established. the manner in which the equipment lessor wishes to be paid should be recorded in this agreement. it will be expected that the first day the penalty is added to the equipment lessee’s account will be the final day of the grace period.