EQUIPMENT LEASE
This
Equipment Lease (this “Lease”) is made effective as of September 15, 2004,
between Xxxx Xxxxxxx (the “Lessor”), 0000 Xxxxx Xx. Xxxxx 000, Xxxx, XX 00000,
and The Xxx Xxxxxx Corporation (the “Lessee”), 0000 Xxxxx Xx. Xxxxx 000, Xxxx,
Xx 00000, and states the agreement of the parties as follows:
EQUIPMENT
SUBJECT TO LEASE.
The
Lessor shall lease the equipment listed on the attached Exhibit
“A”.
PAYMENT
TERMS. The
Lessee shall make 36 payments of $625.00 each, for a total amount of $22,500.00.
Payments shall be due on the fifteenth day of each month, with the first payment
due on October 15, 2004. The lease payments shall be due whether or not the
Lessee has received notice of a payment due.
NON-SUFFICIENT
FUNDS.
The
Lessee shall be charged $25.00 for each check that is returned to the Lessor
for
lack of sufficient funds.
LEASE
TERM.
This
Lease shall begin on the above effective date and shall terminate on September
15, 2007, unless otherwise terminated in a manner consistent with the terms
of
this Lease.
CARE
AND OPERATION OF EQUIPMENT.
The
equipment may only be used and operated in a careful and proper manner. Its
use
must comply with all laws, ordinances, and regulations relating to the
possession, use, or maintenance of the equipment, including registration and/or
licensing requirements, if any.
MAINTENANCE
AND REPAIR. The
Lessee shall maintain at the Lessee’s cost, the equipment in good repair and
operating condition, allowing for reasonable wear and tear. Such costs shall
include labor, material, parts, and similar items.
LESSOR’S
RIGHT OF INSPECTION.
The
Lessor shall have the right to inspect the equipment during Lessee’s normal
business hours.
RETURN
OF EQUIPMENT.
At the
end of the Lease term, the Lessee shall be obligated to return the equipment
to
the Lessor at the Lessee’s expense.
OPTION
TO RENEW.
If the
Lessee is not in default upon the expiration of this lease, the Lessee shall
have the option to renew this Lease for a similar term on such terms as the
parties may agree at the time of such renewal.
ACCEPTANCE
OF EQUIPMENT.
The
Lessee shall inspect each item of equipment delivered pursuant to this Lease.
The Lessee shall immediately notify the Lessor of any discrepancies between
such
item of equipment and the description of the equipment in the Equipment
Schedule. If the Lessee fails to provide such notice before accepting delivery
of the equipment, the Lessee will be conclusively presumed to have accepted
the
equipment as specified in the Equipment Schedule.
OWNERSHIP
AND STATUS OF EQUIPMENT.
The
equipment will be deemed to be personal property, regardless of the manner
in
which it may be attached to any other property. The Lessor shall be deemed
to
have retained title to the equipment at all times, unless the Lessor transfers
the title by sale. The Lessee shall immediately advise the Lessor regarding
any
notice of any claim, levy, lien, or legal process issued against the
equipment.
RISK
OF LOSS OR DAMAGE.
The
Lessee assumes all risks of loss or damage to the equipment from any cause,
and
agrees to return it to the Lessor in the condition received from the Lessor,
with the exception of normal wear and tear, unless otherwise provided in this
Lease.
INDEMNITY
OF LESSOR FOR LOSS OR DAMAGES.
Unless
otherwise provided in this Lease, if the equipment is damaged or lost, the
Lessor shall have the option of requiring the Lessee to repair the equipment
to
a state of good working order, or replace the equipment with like equipment
in
good repair, which equipment shall become the property of the Lessor and subject
to this Lease.
LIABILITY
AND INDEMNITY.
Liability for injury, disability, and death of workers and other persons caused
by operating, handling, or transporting the equipment during the term of this
Lease is the obligation of the Lessee, and the Lessee shall indemnify and hold
the Lessor harmless from and against all such liability.
CASUALTY
INSURANCE.
The
Lessor shall be responsible to maintain casualty insurance with respect to
loss
or damage of the equipment.
TAXES
AND FEES.
During
the term of this Lease, the Lessee shall pay all applicable taxes, assessments,
and license and registration fees on the equipment.
DEFAULT.
The
occurrence of any of the following shall constitute a default under this
Lease:
A.
The
failure to make a required payment under this Lease when due.
B.
The
violation of any other provision or requirement that is not corrected within
30
day(s) after written notice of the violation is given.
C.
The
insolvency or bankruptcy of the Lessee.
D.
The
subjection of any of Lessee’s property to any levy, seizure, assignment,
application or sale for or by any creditor or government agency.
RIGHTS
ON DEFAULT.
In
addition to any other rights afforded the Lessor by law, if the Lessee is in
default under this Lease, without notice to or demand on the Lessee, the Lessor
may take possession of the equipment as provided by law, deduct the costs of
recovery (including attorney fees and legal costs), repair, and related costs,
and hold the Lessee responsible for any deficiency. The rights and remedies
of
the Lessor provided by law and this Agreement shall be cumulative in nature.
The
Lessor shall be obligated to re-lease the equipment, or otherwise mitigate
the
damages from the default, only as required by law.
NOTICE.
All
notices required or permitted under this Lease shall be deemed delivered when
delivered in person or by mail, postage prepaid, addressed to the appropriate
party at the address shown for that party at the beginning of this
Lease.
ASSIGNMENT.
The
Lessee shall not assign or sublet any interest in this Lease or the equipment
or
permit the equipment to be used by anyone other than the Lessee or Lessee’s
employees, without Lessor’s prior written consent.
ENTIRE
AGREEMENT AND MODIFICATION.
This
Lease constitutes the entire agreement between the parties. No modification
or
amendment of this Lease shall be effective unless in writing and signed by
both
parties. This Lease replaces any and all prior agreements between the
parties.
GOVERNING
LAW.
This
Lease shall be construed in accordance with the laws of the State of
Texas.
SEVERABILITY.
If any
portion of this Lease shall be held to be invalid or unenforceable for any
reason, the remaining provisions shall continue to be valid and enforceable.
If
a court finds that any provision of this Lease is invalid or unenforceable,
but
that by limiting such provision, it would become valid and enforceable, then
such provision shall be deemed to be written, construed, and enforced as so
limited.
WAIVER.
The
failure of either party to enforce any provision of this Lease shall not be
construed as a waiver or limitation of that party’s right to subsequently
enforce and compel strict compliance with every provision of this
Lease.
CERTIFICATION.
Lessee
certifies that the application, statements, trade references, and financial
reports submitted to Lessor are true and correct and any material
misrepresentation will constitute a default under this Lease.
ARBITRATION.
Any
controversy or claim relating to this Lease, including the construction or
application of this Lease, will be settled by binding arbitration under the
rules of the American Arbitration Association, and any judgment granted by
the
arbitrator(s) may be enforced in any court of proper jurisdiction.
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Lessor:
Xxxx
Xxxxxxx
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Xxxx
Xxxxxxx
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Lessee:
The
Xxx Xxxxxx Corporation
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| By: | ||||
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Xxxx
Xxxxx
Vice
President
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EXHIBIT
A
Equipment
Schedule
Equipment
Description: 1998 Ford F150 pickup
