EXHIBIT 10.20
EQUIPMENT LEASE
THIS LEASE executed as of February 1, 2004, between A-Y-K-E
Partnership, a partnership (hereafter referred to as "LESSOR"), and Xxxxxxxxx,
Inc., a Missouri corporation (hereinafter referred to as "LESSEE").
1. LESSOR leases to LESSEE, and LESSEE leases from LESSOR, one Lovat
M-142 Tunnel Boring Machine, Series No. 6100.
2. The term of this Lease shall begin February 1, 2004 and shall end
December 3l, 2004. If the leased property is retained by LESSEE after April 30,
2004 without the consent of LESSOR, then the liquidated damages shall be
$25,000.00 plus $5050.00 per day.
3. The Leased property shall be used solely for the installation of
152" tunnel on the Evansville, Indiana.
4. LESSOR will be paid a lump sum of $100,000.00
5. LESSEE may not make alterations, additions or improvements to the
leased property, without prior written notification to and approval by LESSOR.
All such additions to and improvements shall immediately become the property of
the LESSOR and subject to the terms of this Lease.
6. LESSEE, at its own cost and expense, shall keep the leased property
in good repair, condition and working order, and shall not subject the leased
property to careless or needlessly rough usage.
7. LESSOR shall at all times during business hours have the right to
enter upon the premises where the leased property may be located for the purpose
of inspecting it or observing its use.
8. The leased property shall be delivered to LESSEE at Evansville,
Indiana on or before February 1, 2004. LESSEE shall inspect the leased property
before the commencement of the Lease. Unless LESSEE gives written notice to the
LESSOR within five (5) days after first test use of the leased property
specifying any defect in or other objection to the leased property, it shall be
conclusively presumed, as between LESSOR and LESSEE, that LESSEE has fully
inspected the leased property and found it to be in
good condition and repair and in full conformance with any and all express or
implied representations, promises, statements or warranties with respect to the
merchantability, suitability, or fitness for purpose of the leased property. If
LESSEE rejects the leased property for good cause, this Lease shall be null and
void. All transportation charges, including duties, from and to Evansville,
Indiana shall be the responsibility of LESSEE, All loading and unloading charges
in Evansville, Indiana shall be the responsibility of the LESSEE.
9. LESSEE, at its own expense, shall keep the leased property insured
for casualty risks required by LESSOR (no underground exclusion) in the amount
of $1,250,000.00, with carriers acceptable to LESSOR and a loss payable
endorsement in favor of LESSOR, and LESSEE shall further maintain liability
insurance in the amount of $1,250,000.00 naming LESSOR as an additional insured,
and all policies shall provide that they may not be cancelled or altered without
at least ten (10) days' prior written notice to LESSOR. LESSOR shall maintain
insurance coverage of the leased equipment until it is received by LESSEE at
point of delivery.
10. LESSEE shall pay all taxes and fees connected with this Lease or
the LESSEE's use of the leased property, including any use, personal property,
or sales taxes resulting therefrom.
11. LESSEE shall indemnify LESSOR against all claims, actions,
proceedings, costs, damages and liabilities, including attorneys fees, arising
out of, connected with this Lease, or resulting from the use of the leased
property.
12. This Lease shall be governed by and construed under the laws of the
State of Missouri.
13. Without the prior written consent of the LESSOR, LESSEE shall not
assign, transfer, pledge or hypothecate this Lease, the leased property, or any
part thereof, or any interest therein, nor sublet or lend the property or any
part thereof, nor permit the leased property or any part thereof to be used by
anyone other than the LESSEE or LESSEE's employees.
14. This instrument shall be binding upon and inure to the benefit of
the respective parties and their legal representatives, successors and assigns.
IN WITNESS WHEREOF, this instrument was executed by the parties as of
the date above written.
XXXXXXXXX, INC. A-Y-K-E PARTNERSHIP
By /s/ Xxxxx Xxxx By /s/ Xxxxxx X. Xxxxxxxxx
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Xxxxx Xxxx, Vice President Xxxxxx X. Xxxxxxxxx,
"LESSEE" Partner
"LESSOR"
