A Checklist of the main issues to consider when drafting and negotiating the lessee's covenants in an equipment lease. These include the lessee's covenants regarding the use and maintenance of the leased equipment, as well as the obligation or option to upgrade the leased equipment. This Checklist also lists the main issues to consider regarding the lessee's obligation to maintain property insurance and liability insurance, which helps to mitigate against loss (including material and non-material impairment of the equipment) and liability.