"...or a cancelation of the lease with purchase option, if applicable"

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Note added at 8 mins (2005-08-07 22:20:31 GMT)
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it sounds like they are either to a type of lease in which you have the option to purchase at the end of the lease term. For example, I had a lease with purchase option (or lease with option to purchase) on my car. When the lease was over, I could either choose to return the car or to buy it.

yes,this seems to be the term used - depends on how it's accounted for on the balance sheet.

capital lease
A lease that meets one or more of the following criteria, meaning it is classified as a purchase by the lessee: the lease term is greater than 75% of the property's estimated economic life; the lease contains an option to purchase the property for less than fair market value; ownership of the property is transferred to the lessee at the end of the lease term; or the present value of the lease payments exceeds 90% of the fair market value of the property.
http://www.investorwords.com/722/capital_lease.html

Recherche : Règlement sur le financement des petites entreprises du Canada -- établissement et mise en oeuvre d'un projet pilote sur la location-acquisition

Search: Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations
http://lois.justice.gc.ca/fr/C-10.2/DORS-2001-527/index.html


There are two ways of accounting for leases. In an operating lease, the lessor (or owner) transfers only the right to use the property to the lessee. At the end of the lease period, the lessee returns the property to the lessor. Since the lessee does not assume the risk of ownership, the lease expense is treated as an operating expense in the income statement and the lease does not affect the balance sheet. In a capital lease, the lessee assumes some of the risks of ownership and enjoys some of the benefits. Consequently, the lease, when signed, is recognized both as an asset and as a liability (for the lease payments) on the balance sheet. The firm gets to claim depreciation each year on the asset and also deducts the interest expense component of the lease payment each year. In general, capital leases recognize expenses sooner than equivalent operating leases.
pages.stern.nyu.edu/~adamodar/New_Home_Page/AccPrimer/lease.htm

The term "lease purchase" is known by several other names, such as "rent-to-own," "lease option," and "lease with option to buy." Basically, all of these have the same meaning...
A lease purchase contract combines a basic lease contract with an option-to-purchase contract. The tenant/buyer pays to the landlord/seller a nonrefundable option deposit that is applied to the purchase price of the home. The tenant/buyer then pays to the landlord/seller rent to compensate the landlord/seller for the tenant/buyer's use of the property. Rent payments are usually made on a monthly basis. A portion of that monthly payment is often applied to the purchase price and/or the down payment of the home. During the term of the lease, but before the option expires, the tenant/buyer has exclusive right to buy the home under the terms to which both parties have previously agreed.
[http://www.lease2purchase.com/book_ch2.php]
Have a read and take your pick.