Sequoia Equipment Company, Inc.

Rental Agreement Terms & Conditions

RETURN OF EQUIPMENT: Lessee agrees, at the expiration of the term hereof or sooner termination of this lease, to return, transportation costs prepaid, all of the equipment to Lessor at the place of business of Lessor above stated in the same operating condition, order, repair and appearance as when received (ordinary wear and tear excepted) and free of all liens and encumbrances.
LOSS OR DAMAGE: The Lessee agrees to pay the Lessor for all loss or damages to the equipment arising from any cause whatsoever that may occur during the term of the lease It is agreed by the parties hereto, that the current retail value is hereby accepted as the true value and shall be used in case of arbitration or adjustment. In making such adjustment it is understood that no rentals theretofore paid or due shall apply to the payment of such loss. It is further understood and agreed that in making any adjustment for loss or damages to equipment, Lessee shall be credited with the amount of insurance payment received by Lessor under insurance policies, if an insurance recovery is effected hereunder. Lessee, in addition to liability for loss or damage herein otherwise provided for, shall be liable for all loss and damage to said equipment caused by strikes, riot and civil commotion arising from any cause whatsoever.
INSPECTION: Lessee shall, whenever requested, advise Lessor of the exact location of the equipment. Lessor or its representatives may, for the purpose of inspection, at all reasonable times, enter upon any job, building or place where the equipment is located and may remove the same without notice to Lessee, if the equipment is, in the opinion of the Lessor, being used beyond its capacity or in any manner improperly cared for or abused, or in the event of termination or breach of this agreement.

WARRANTY:

SUPPLIES, MAINTENANCE AND REPAIRS: Lessee shall be responsible for and shall bear the expense of all fuel, lubrication, and maintenance for each item of equipment. Lessor undertakes no obligation with respect to repairs or replacement of parts, attachments, accessories or equipment, except pursuant to written warranty as provided in the section of this lease entitled "WARRANTY." Lessee shall, at its expense and at all times during the term hereof, maintain each item of equipment in good operating order, repair and appearance and shall lubricate and "practice preventative maintenance' as required, but not less than regular intervals as suggested in manufacturer's service manual, receipt of a copy of which is hereby acknowledged by Lessee, Lessee agrees to maintain said equipment in the same condition as when delivered to it by Lessor, usual and ordinary wear and tear excepted.” Lessee agrees that in effecting repairs, it will have such work performed only by qualified persons satisfactory to Lessor.
OPERATION: Lessee agrees that the equipment shall be used solely in the conduct of Lessee's business and within Lessee's possession and under its control, that said equipment is to be used solely by the Lessee or his employees and for the purposes for which it was intended, that said equipment will be operated only by competent employees of Lessee and shall not be used beyond its normal capacity.
LIABILITY AND INSURANCE: Lessee shall be liable for all expenses, personal injury and property damages and claims arising out of its possession, operation or transportation of the equipment herein described, and shall hold Lessor and its assigns harmless therefrom. The Lessee further agrees to protect the Lessor with full liability insurance coverage, such insurance to cover loss, injury, death or damage occasioned or caused by or in connection with the equipment, and that such insurance shall be in an amount and issued by an insurance company satisfactory to Lessor, and shall further protect Lessor against public liability of any and every kind. All such insurance shall contain an agreement of the insuring company not to cancel the same until at least ten (10) days' prior notice to Lessor and its assigns. Lessee shall promptly deliver to Lessor evidence of said insurance.
INSURANCE: Lessee shall keep the equipment insured against all risks of loss or damage by fire and such other risks as are covered by endorsement commonly known as supplemental or extended coverage for not less than the market value of the equipment; and shall carry for bodily injury and property damage insurance covering the equipment in the combined amounts of not less than $500,000.00 for each occurrence. All such insurance shall insure both Lessor and Lessee. The Lessee may affect such coverage’s under its blanket policies. All such policies shall be written by companies presently insuring the Lessee or other companies reasonably satisfactory to the Lessor and certificates showing such coverage’s to be in effect shall be furnished to Lessor upon request. Each insurer shall agree, by endorsement upon the certificate or certificates issued by an independent instrument furnished to Lessor, that Lessee will give Lessor thirty (30) days' written notice before the policy in question shall be altered or cancelled and that any proceeds shall be paid jointly to the Lessor and Lessee as their interest may appear. The proceeds of such insurance, at the option of Lessor, shall be applied (a) toward the replacement, restoration or repair of the equipment or (b) toward payment of the obligations of the Lessee hereunder.
SUBLEASING: The Lessee shall have no right to sub-lease said equipment or remove it from the County and State specified in this contract without the written consent of the Lessor.
TITLE: Title to the equipment shall at all times be vested in the Lessor unless transferred to the Lessee through a sale. The Lessee shall give Lessor immediate notice of any levy attempted upon said equipment, or if said equipment from any cause becomes liable to seizure, and to indemnify Lessor against all loss and damages caused by any such action.
DEFAULT: If the Lessee shall fail to make any rental payment when due, shall attempt to sell or encumber any interest in the equipment, shall cease doing business as a going concern, shall institute or have instituted against him any proceedings under any bankruptcy or insolvency law, shall make an assignment for the benefit of creditors or shall fail to comply with any other provision of this Lease, or if any attachment, execution, writ, etc. or other process is levied against the equipment or any of Lessee's property, or if for any reason Lessor deems itself unsafe, the Lessor may immediately and without notice declare the entire balance of the rental payments due and payable together with all expenses of collection by suit or otherwise, including reasonable attorneys fees. If any of the above events shall occur, Lessee agrees to surrender possession of the equipment on demand and Lessor may enter upon Lessee's premises to the full extent allowed by law and take possession thereof.
TAXES: Lessee shall pay all taxes whatsoever by whomsoever payable (other than Federal or State income taxes of Lessor) on or relating to the equipment leased hereunder and the purchase, sale, rental, use or operation thereof. Lessee shall reimburse to Lessor, upon demand, as additional rent, the amount or amounts of any such costs and taxes paid by Lessor. It is the intent of this Agreement that Lessor shall receive the rent hereunder as a net return on the equipment leased hereunder.
COMPLIANCE WITH LAWS: The Lessee agrees to comply with and conform to all Municipal, State and Federal laws relating to the operation of said equipment and to pay all costs and expenses of every character occasioned by or involving the use or operation of the equipment.
ASSIGNMENT:
A. Lessee agrees that Lessor may assign this Lease, and all right, title and interest of Lessor in and to the equipment, and all rents due or to become due to Lessor hereunder (of which assignment Lessee hereby waives notice) and Lessee, agrees to recognize such assignment. Lessee's obligation to pay rent under this Lease shall not as to any such assignee be subject to any diminution or right of, set-off, counterclaim or recoupment whatsoever arising out of any breach of any obligation of the Lessor hereunder or by reason of any other liability at any time owing by the Lessor to the Lessee.

B. Lessee shall not assign this Lease or any rights hereunder or to the items of equipment.
GENERAL: Time is of the essence of this Lease. Lessor's failure at any time to require strict performance by Lessee of any of the provisions of this Lease shall not waive or diminish Lessor's right thereafter to demand strict compliance therewith or with any other provisions. Waiver of any default shall not waive any other default. The remedies in this Lease provided in favor of Lessor shall be available to its successors and assigns and shall not be deemed exclusive, but shall be cumulative, and shall be in addition to all other remedies in its or their favor existing at law or in equity.