Common use of FMV Lease Clause in Contracts

FMV Lease. If the AU opts for a Fair Market Value (“FMV”) Lease, the initial term of this Lease will begin on the date the Products are installed and will continue for the number of months agreed upon in the purchase order. The AU agrees to enter into this agreement for an essential government purpose. Unless the AU has opted for an LTO Lease as described in Section 14, the Contractor is required to notify the AU at least thirty (30) days before the end of the initial term that the term is ending. The AU must inform the Contractor (i) to return the Products at the end of the initial term; or (ii) to purchase the Products pursuant to Section 13. If the AU fails to give such notice, the Lease will automatically renew for a one (1) month period until a renewal agreement is in place or ninety (90) days have elapsed. The amount the AU will be required to pay will remain unchanged during the time period past the initial term. At ninety (90) days, the Contractor may terminate the Lease at the conclusion of the initial term by giving the AU thirty (30) days prior written notice of intent to do so. If the AU intends to terminate the Lease, the AU shall either return the Products pursuant to Section 11 of this Lease or purchase the products pursuant to Section 13.