Rental Terms
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COMMERCIAL RENTAL TERMS

(U.S. FORM – AMECO AS LESSOR)

 

  1. Terms and Conditions: All of the terms and conditions of this Lease shall govern the rights and obligations of Lessor and Lessee except as specifically modified in writing. Whenever reference is made herein to “this Lease” it shall be deemed to include each of the various Schedules identifying all items of Equipment, all of which constitute one undivided lease of the vehicles and/or equipment (hereinafter, the “Equipment”). Billing is based on a 28 day cycle, unless otherwise agreed upon.
  2. Terms: The obligations under this Lease shall commence upon written acceptance hereof by Lessor and shall end upon full performance and observance of each and every term, condition and covenant set forth in this Lease, each Schedule hereto and any extensions hereof. The rental term of this Equipment listed in each Schedule shall commence on the date shown in Schedule and shall terminate on the last day of the term stated in such Schedule.
  3. Condition of Equipment and Warranty: Lessor shall furnish the Equipment to Lessee as indicated above in proper operating condition. In case any of the Equipment should be found not to be in such condition at the time of Lessee’s receipt thereof, Lessee shall notify Lessor stating the details of any defect. Rent shall abate during the period of time required to have the Equipment placed in proper operating condition, or until replacement equipment is furnished, and the expense thereof shall be borne by the Lessor. Use of any of the Equipment by Lessee, without such notice to Lessor shall constitute acknowledgement that Lessor has fulfilled its obligations as to the condition of the Equipment. EXCEPT AS PROVIDED IN THIS ARTICLE (3), LESSOR EXTENDS NO OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, AS TO THE CONDITION OF THE EQUIPMENT, ITS PERFORMANCE, CAPACITIES OR ITS FITNESS OR SUITABILITY FOR ANY PARTICULAR PURPOSE, AND SPECIFICALLY DISCLAIMS THE SAME.
  4. Rental Payments: The rent for the Equipment or Goods shall be due and payable within 30 days of receipt of invoice. Unless otherwise agreed to by both parties upon the face of this Lease, rental rates contemplate an operating period which consists of not more than eight hours per day, forty hours per week, and 176 hours per month. Overtime hours will be billed at 1/8th of the daily rate, 1/40th of the weekly rate, or 1/176th of the monthly rate. If the Equipment is a licensed vehicle, allowable mileage is 1,700 miles per month. Mileage in excess of allowable mileage will be invoiced to Lessee at the rate of US$0.20 (twenty cents) per mile.
  5. Delivery and Installation: Lessee will select the type, quantity, and manufacturer of each item of Equipment. Lessee at its own expense, will pay transportation, packing, taxes, duties, installation, testing and other charges in connection with the delivery, assembly and use of the Upon request, Lessor can quote these services to Lessee.
  6. Title to and Location of Equipment: Title to each item of Equipment leased hereunder shall remain with the Lessor at all times. Lessee, at its expense, will protect, defend Lessor’s title to the Equipment and will keep the Equipment free and clear from any and all claims, liens, encumbrances and legal processes of Lessee’s creditors and other persons.
  7. Use of Equipment, Inspection and Reports: Lessee may possess and use the Equipment in accordance with this Lease, provided that any such use is in conformity with all applicable laws, any insurance policies and any warranties of the manufacturer with respect to the Equipment. Lessor shall have the right, upon reasonable prior notice to the Lessee and during the Lessee’s regular business hours, to inspect the Equipment at the premises of the Lessee or wherever the Equipment may be located. Lessee shall promptly notify Lessor of all details arising out of any change in location of the Equipment any alleged encumbrances
    thereon or any accident allegedly resulting from the use or operation thereof.
  8. Risk of Loss: All risk of loss, damage, theft or destruction to each item of Equipment shall be borne by the Lessee until such Equipment has been returned to and accepted by Lessor, and Lessee shall pay all rent due and to become due under this Lease with respect to such Equipment. Lessor may replace damaged or stolen Equipment, subject to receipt of adequate proceeds from Lessee’s insurance coverage as required by Article 15.
  9. Maintenance and Repairs: Unless otherwise agreed to by both parties upon the face of this Lease, Lessee agrees during the life of this Lease, at its own cost and expense, to maintain the Equipment in good mechanical condition and proper running order, to provide all fuel and lubricants, to properly make all necessary repairs, and to return the Equipment to Lessor at the end of this Lease as set forth below. Lessee also shall reimburse Lessor for all costs of repairs, repainting and other losses due to damage to or destruction of the Equipment from any cause whatsoever, excluding normal wear and tear. Lessee shall cause the Equipment to be operated only for its own use and by adequately trained and qualified operators and shall pay all expenses of operation.
  10. Equipment Cleaning: Upon return, if the Vehicle(s), at Lessor’s discretion, requires cleaning above and beyond Lessor’s standard cleaning, Lessor will charge Lessee a minimum of $350 for professional cleaning. Any cleaning in addition to standard will be at a reasonable cost.Lessor maintains a non-smoking fleet, including a prohibition on the use of e-cigarettes in the Equipment(s). If the Equipment(s) has an odor or is soiled from smoke or vapor of any kind, Lessor will charge a minimum of $400 for odor removal.
  11. Lost Keys/ Key Fobs/ Transponders/ Lockouts/ Telematics Transponder: If Lessee loses the Equipment(s)’s keys, key fobs, or Telematics transponder, Lessor will charge Lessee for the actual cost of replacing the item, a $100 fee for Lessor’s out-of-pocket administrative costs for replacing lost transponders, and for the cost of delivering replacement keys and/or key fobs and/or towing the Vehicle(s) to the nearest Store Location to open such Vehicle(s). If Lessee or Qualified Operator locks the keys and/or key fobs in the Vehicle(s) and requests assistance from Lessor, Lessor may charge Lessee for the cost of delivering replacement keys and/or key fobs and/or towing the Vehicle(s) to the nearest Store Location to open such Vehicle(s).
  12. Parking and Traffic Violations: LESSEE WILL BE RESPONSIBLE FOR, AND WILL PAY WITHOUT DELAY, ALL PARKING AND TRAFFIC VIOLATIONS, AS WELL AS OTHER EXPENSES AND PENALTIES, ALL TOWING, STORAGE AND IMPOUND FEES AND ALL TICKETS INCURRED WHILE THE VEHICLE(S) IS ON RENT TO LESSEE. IF LESSEE IS ISSUED AN AUTOMATED TRAFFIC VIOLATION, LESSEE AGREES TO PAY A “TRAFFIC VIOLATION SERVICE CHARGE” COMPRISED OF THE AMOUNT OF SUCH VIOLATION PLUS A FLAT FEE OF $20.00 WHICH IS THE AMOUNT OF LESSOR’S OUT-OF-POCKET ADMINISTRATIVE COSTS. THIS CHARGE WILL BE BILLED TO THE LESSEE WHEN INFORMATION REGARDING ANY SUCH VIOLATION, AND EXPENSES RELATED THERETO, IS RECEIVED BY LESSOR, AND MAY BE CHARGED AT A LATER DATE, INCLUDING LATE FEES.
  13. Tolls, Violations and Fees: LESSEE ACKNOWLEDGES THAT LESSEE IS RESPONSIBLE FOR ALL TOLLS AND TOLL VIOLATIONS INCLUDING LATE FEES. LESSEE WILL BE CHARGED A ”TOLL VIOLATION SERVICE CHARGE” COMPROMISED OF THE AMOUNT OF THE TOLL, ANY ASSOCIATED FEES AND CHARGES, PLUS A FLAT FEE OF $5.00 FOR EACH VIOLATION WHICH IS THE AMOUNT OF LESSOR’S OUT OF POCKET ADMINISTRATIVE COSTS. THIS CHARGE WILL BE BILLED TO THE LESSEE WHEN INFORMATION REGARDING ANY SUCH TOLL VIOLATION, AND EXPENSES RELATED THERETO, IS RECEIVED BY LESSOR, AND MAY BE CHARGED AT A LATER DATE, INCLUDING LATE FEES.
  14. Vehicle Tires: For personnel transportation vehicles such as cars, light-duty pickup trucks, SUVs, and vans, Lessor will replace up to one set of tires per 40,000 miles due to normal wear and tear. Tire replacement will be at a location and of Lessor’s choosing, though Lessor will work in good faith with Lessee to identify a suitable time and location for replacement. Type and size of replacement tire will be at Lessor’s sole discretion. Tires replaced due to damage, abuse, or neglect, including but not limited to: (i) damage from punctures, debris, or abnormal road conditions, (ii) damage due to off-road use and/or jobsite conditions, (iii) theft, (iv) change in tire type or size at Lessee’s request, and (v) excessive wear due to driving style are reimbursable at cost plus fifteen percent (15%).
  15. Insurance: Lessee, at its own cost and expense, shall maintain the following minimum insurance coverage with respect to the Equipment and the operation thereof by Lessee: (a) Equipment Insurance covering “all risks” of physical loss of or damage to the Equipment for the full replacement value thereof. For rentals involving cranes and other lifting apparatus, insurance must not include any boom or overload damage exclusions; (b) Statutory Worker’s Compensation and Employer’s Liability Insurance with limits of USD $1,000,000 Each Accident, USD $1,000,000 Disease – Each Employee, USD $1,000,000 Disease – Policy Limit covering all persons operating the Equipment or doing work for the benefit of Lessee in connection with Lessee’s operation of the Equipment; (c) Commercial General Liability Insurance – USD $1,000,000 per occurrence, USD $2,000,000 General Aggregate and USD $2,000,000 Products and Completed Operations; and (d) Automobile Liability Insurance – USD $1,000,000 per occurrence combined single limit for bodily injury and property damage. The Commercial General Liability policy shall expressly cover the contractual liability assumed by Lessee under Article 12 of this Lease. Lessee shall, no later than (10) days after the execution hereof or upon request of Lessor, furnish satisfactory evidence of the foregoing insurance and of the payment of premiums therefor. The foregoing policies of insurance shall be reasonably satisfactory to Lessor as to form, amount and insurer, and shall provide for at least ten (10) days advance written notice of cancellation or material change to Lessor. The policies sets forth above (excluding Worker’s Compensation and Employer’s Liability Insurance) shall be endorsed to name Lessor, including its respective affiliates, directors and employees, as additional insureds.The proceeds of any public liability or property damage insurance shall be payable first in the interest of Lessor to the extent of its liability or loss, if any, and the balance to Lessee. The proceeds of any “All Risks” insurance with respect to the Equipment shall be payable solely to Lessor and shall be applied by Lessor toward the payment of Lessee’s obligations hereunder and any balance of the proceeds shall be the property of Lessor, provided that such proceeds shall be used for the repair or replacement of the affected Equipment.
  16. Late Charge: Should Lessee fail to duly pay any part of any rental payment or other sum to be paid to Lessor under the Lease, then Lessee shall pay interest on such delinquent payment from the due date until paid at 1-1/2% per month, or the applicable maximum legal rate of interest, whichever is less.
  17. Indemnification: Lessee assumes liability for, and hereby agrees to defend, indemnify, protect and keep harmless Lessor, its agents, employees, officers, directors, successors and assigns from and against, any and all liabilities, obligations losses, damages, injuries, claims, demands, penalties, actions, costs and expense, (including reasonable attorney’s fees), of whatsoever kind and nature, arising out of the use, condition, operation, ownership selection, delivery, leasing or return of any item of Equipment, regardless of (a) where, how any by whom operated, or (b) any failure on the part of Lessor to perform or comply with any condition of this Lease, or (c) the negligence or fault of lessor. The indemnities and assumptions of liabilities and obligations herein provided for shall continue in full force and effect notwithstanding the expiration or other termination of this Lease. Lessee is an independent contractor and nothing contained in this Lease shall authorize Lessee or any other person to operate any item of Equipment so as to incur or impose any liability or obligation for or on behalf of Lessor.
  18. Return of Equipment: Lessee will at its expense deliver items of Equipment to Lessor’s shipping point in the event of expiration, termination, or default by Lessee under this Lease. All Equipment so delivered by Lessee to Lessor will be in the same condition as when delivered to Lessee, reasonable wear and tear resulting from authorized use thereof alone excepted.
  19. Events of Default: Lessee shall be in default under this Lease upon the happening of any of the following events or conditions (“Events of Default”):
    (a) Default by Lessee in payment of any installment of rent or any other indebtedness or obligation now or hereafter owned by Lessee to Lessor under this Lease or otherwise and the continuance of such default for ten consecutive days, or (b) default in the performance of any obligation, covenant or liability contained in this Lease or any other agreement or document with Lessor, and the continuance of such default for ten consecutive days after written notice thereof by Lessor to Lessee; or (c) any warranty, representation or statement made or furnished to Lessor by or on behalf of Lessee proves to have been false in any material respect when made or furnished; or (d) loss, theft, damage destruction, or the attempted sale or encumbrance by Lessee of any of the Equipment, or the making of any levy, seizure of attachment thereof or thereon, or (e) dissolution, termination of existence, discontinuance of its business, insolvency, business failure, or appointment of a receiver of any part of the property of or assignment for the benefit of creditors by Lessee or the commencement of any proceedings under any bankruptcy, reorganization or arrangement laws by or against Lessee.
  20. Remedies of Lessor: Upon the occurrence of any Event of Default and at any time thereafter Lessor may without any further notice exercise one or more of the following remedies, as Lessor in its sole discretion shall elect: (a) declare all unpaid rentals under this Lease to be immediately due and payable, (b) terminate this Lease as to any or all items of Equipment; (c) take possession of the equipment wherever found, and for the purpose enter upon any premises of Lessee and remove the equipment, without any liability for suit, action or other proceeding by the Lessee and remove the same; (d) cause Lessee at its expense to promptly return the Equipment to Lessor in the condition set forth above; (e) use, hold, sell lease or otherwise dispose of the equipment or any item thereof on the premises of Lessee or any other location without affecting the obligations of Lessee as provided in this Lease; (f) sell or lease the equipment or any part thereof, at public auction or by private sale or lease at such time or times and upon such terms as Lessor may determine, free and clear of any rights of Lessee end, if notice thereof shall constitute reasonable notice thereof to Lessee; (g) proceed by appropriate action either by law or in equity to enforce performance by Lessee of the applicable covenants of this Lease or to recover damages for the breach thereof; (h) exercise any and all rights accruing to a Lessor under any applicable law upon a default by Lessee. In addition, Lessor shall be entitled to recover immediately as liquidated damages, and not as a penalty, a sum equal to the aggregate of the following: (a) all unpaid rentals or other sums which are due and payable for any items of Equipment up to the date of redelivery to or repossession by Lessor; (b) any expense paid or incurred by lessor in connection with the repossession, holding, repair and subsequent sale, lease or other disposition of the Equipment, including attorney’s fees and legal expenses; (c) all unpaid rentals due and to become due under this Lease for any item of Equipment which Lessee fails to return Lessor as provided above or converts or destroys or which Lessor is unable to repossess; and (d) an amount equal to the difference between (i) all unpaid rentals for any item of equipment returned to or repossessed by lessor for the date thereof to the end of the respective rental period therefor and (ii) the present fair market rental value of each such item or items of Equipment for such unpaid rental period (the “Unexpired Rental Value”), provided however, that the Unexpired Rental Value of each item of Equipment shall be deemed to be an amount equal to the proceeds of any sale thereof by Lessor or lease thereof by Lessor for a period substantially similar to the unexpired rental period therefor. Should Lessor however, estimate its actual damages to exceed the foregoing Lessor may at its option, recover its actual damages in lieu of or in addition thereto. None of the remedies under this Lease are intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to herein or otherwise available to Lessor in law or in equity. Any repossession of subsequent sale or lease by Lessor of any item of Equipment shall not bar an action for a deficiency as herein provided, and the bringing of an action or the entry of judgment against the Lessee shall not bar the Lessor’s right to repossess any or all items of Equipment. LESSEE WAIVES ANY AND ALL RIGHTS TO NOTICE AND TO A JUDICIAL HEARING WITH RESPECT TO THE REPOSSESSION OF THE EQUIPMENT BY LESSOR IN THE EVENT OF A DEFAULT HEREUNDER BY LESSEE.
  21. Severability: Any provision of the Lease which is prohibited or unenforceable in any jurisdiction shall as to such jurisdiction, be effective to the extent of such prohibition and unenforceable without invalidating the remaining provision hereof. To the extent permitted by applicable law, Lessee hereby waives any provision of law which prohibits or renders unenforceable any provisions hereof in any respect.
  22. Amendments and Waivers: This instrument and the Schedules executed by lessor and Lessee constitute the entire agreement between Lessor and Lessee with respect to the Equipment and the subject matter of this Lease.
  23. Construction: This Lease shall in all respects be governed by and construed in accordance with the laws of the State of South Carolina.
  24. Parties: The provisions of this Lease shall be binding upon, and insure to the benefit of, the assigns, representatives and successors of the Lessor and Lessee. If there is more than one Lessee named in this Lease, the liability of each shall be joint and several.

 

Rev0224