Complyx

Any payment made by a lessee of equipment to the lessor of the equipment for the use of the equipment, as long as all of the following six standards are met:

1. The lease agreement is set out in writing and signed by the parties.

2. The lease covers all of the equipment leased between the parties for the term of the lease and specifies the equipment covered by the lease.

3. If the lease is intended to provide the lessee with use of the equipment for periodic intervals of time, rather than on a full-time basis for the term of the lease, the lease specifies exactly the schedule of such intervals, their precise length, and the exact rent for such interval.

4. The term of the lease is for not less than one year.

5. The aggregate rental charge is set in advance, is consistent with fair market value in arms-length transactions and is not determined in a manner that takes into account the volume or value of any referrals or business otherwise generated between the parties.

6. The aggregate equipment rental does not exceed that which is reasonably necessary to accomplish the commercially reasonable business purpose of the rental.

3. Equipment Rental