TERMS AND CONDITIONS

 

1.  This lease shall commence on the date equipment described on the reverse side is received and shall terminate on the date equipment is returned to and accepted by ILOCA SERVICES, Inc. (hereinafter, Lessor) at the location shown of the reverse side hereof. (Except as stated in paragraph 3 and paragraph 17).

 

2. Lessee acknowledges receipt of the equipment leased hereunder in good condition (except as may be noted on the reverse side hereof) and that said condition is satisfactory and acceptable to Lessee: Lessor has made no warranties, expressed or implied, with respect to the leased equipment or any part thereof and has not made, and shall not be bound by any statements, agreements or representations not specifically set out herein, unless the same be reduced to writing and signed by Lessor.

 

3.  Lessee agrees to return equipment to Lessee in good condition, normal wear expected. EQUIPMENT NOT RETURNED IN GOOD CONDITION SHALL REMAIN SUBJECT TO RENTAL CHARGES UNTIL THE REQUIRED REPAIRS, ACCEPTABLE TO LESSOR, ARE COMPLETED. Lessee shall, at its expense, keep and maintain the equipment leased hereunder in first class working order condition, repair, and free from any and all liens and claims; install, make all necessary repairs and replacements thereto, using only new manufacturer made or manufacturer approved parts, and provide all labor, materials, lubricants, airing of tires, parts and other supplied or items consumed by or required, in connection with the use of said leased equipment, not removing the original tires therefrom, save the repair or replacement (all of which shall become the Lessor’s property.)

 

4.  LESSEE ACKNOWLEDGES ACCEPTANCE OF THE HEREIN DESCRIBED EQUIPMENT TIRES AS PREARRANGED (ON THE REVERSE SIDE HEREOF) WITH LESSOR AND NO WARRANTIES APPLY TO TIRES OTHER THAN EXPRESSED OR IMPLIED BY MANUFACTURER THEREOF, TIRES TO BE RETURNED IN CONDITION AS RECEIVED WITH THE EXCEPTION OF NORMAL USAGE. 

 

5.  All rentals and other changes hereunder shall be billed to Lessee at least once each month and Lessee shall pay invoices within 30 days of receipt thereof. Rentals not paid when due shall bear interest at the rate of 1.5% per month until paid.

 

6.  Lessee will pay, or reimburse Lessor for, any and all sales and use taxes and in any state other that the state in which the equipment is licensed for personal property taxes, or other direct taxes levied against or based upon the price or value of the property leased hereunder or its use or operation, or levied against or based upon the amount of rentals paid or to be paid hereunder or any other taxes levied against or based upon the lease or the execution, filing, recording, or performance thereof. The tern "direct taxes" as used herein shall include all taxes (except income taxes), charges and fees, levied, assessed, or charged by the U.S. Government, any state government, or county, city or other taxing authority.

 

7. Lessee shall assume all responsibility for and promptly pay or reimburse Lessor for all license fees or taxes, bonds, permits, certificates, assessments, and/or sales, use, gross receipt, business, property, and other taxes tolls now or hereafter imposed upon the equipment or upon the leasing, use or operation thereof (excluding income taxes imposed on Lessor) and on Lessor's request, provide Lessor with evidence of the payment thereof, provided that all certificates of title and/or registrations shall be applied for and issued in the name of Lessor or its assignee. However, notwithstanding the foregoing, Lessor shall pay the expense of licensing the equipment leased hereunder in Illinois.

 

 8.  Lessee hereby specifically indemnifies Lessor, and agrees to hold Lessor harmless, against all loss and damages Lessor may sustain or suffer because of: (a) the loss of, or damage to said equipment or any thereof, because of fire, theft, collision, lighting, flood, windstorm, explosion or other casualty, and (b) the death of, injury to, or damage to the property of, any third person as a result of, in whole or in part, the use or condition of said equipment while in the custody, possession, or control of Lessee, and Lessee further agrees, at Lessee's cost and expense to procure and deliver to Lessor, simultaneously with or prior to delivery to Lessee of the equipment leased hereunder and keep in full force and effect during the entire term of this lease a policy or policies of insurance satisfactory to Lessor as to the insurer and as to the form and amount of coverage with limits of no less than $1,000,000, for personal injury liability, $50,000 for property damage liability collision and comprehensive in the amount of estimated value as stated on face of this agreement with deductible not to exceed $1,000.                   

      

9.  Lessee shall not make, suffer, or permit any unlawful use or handling of said leased equipment. Lessee shall not, without Lessor's prior written consent thereto make or suffer any changes, alterations, or improvements in or to said leased equipment or remove therefrom any parts, accessories, attachments, or other equipment.  Equipment returned with accessories, attachments, or other items missing will continue to be considered as rented equipment until the missing property is returned or replacement cost is paid.

 

10.  PERSONAL GUARANTEE - President, owner, or partner, or any or all officers of a corporation, agree that by signing or having a representative of the company sign this lease, or a master lease, do hereby authorize that he/she/they will personally guarantee full payment of any and all outstanding balances due this lease. In the event of default, any and all officers, partners, or owners will be fully liable for all debts due to Lessor from Lessee.

 

11. In the event any act or thing required of Lessee hereunder shall not be done and performed in the manner and at the time or times required by this lease, Lessee shall thereby be and become in default under this lease, thereby vesting in Lessor the right, without any notice or demand, to declare all unpaid lease rentals to be due and payable forthwith and to retake and retain said equipment free of all rights of Lessee without any further liability or obligation to redeliver the same or any thereof to Lessee and without, to any extent, releasing Lessee from Lessee's covenants, obligations, and indemnities provided hereunder, including but not limited to Lessee's obligation for the payment of the rental provided herein.

 

12. In the event of Lessor issuing a default letter to Lessee, the term of the lease or leases immediately changes to a one-day lease starting with the day the equipment was picked up. The Lessee has 24 hours in which to return the equipment from stated deadline in default letter. If Lessee does not return equipment to destination set by Lessor, and within the 24 hour period, Lessee agrees that Lessor, at their option, can report the equipment (leased items), as stolen property to the police.  Lessee also agrees that once a police report has been filed, Lessor, at their option, may report the trailer stolen and file a claim to Lessee's insurance company. All proceeds of claim will go directly to Lessor.

 

13. In the event Lessor shall retake possession of the leased equipment or any part thereof and there shall, at the time of such retaking, be in, upon or attached to such retaken equipment any other property, goods or things of value belonging to Lessee or in the custody or control of Lessee, Lessor is hereby authorized to take possession of such other property, goods or things of value and hold the same thing for Lessee either in Lessor's possession or, in the exercise of Lessor's sole discretion, in public storage for the account of, and at the expense of the Lessee.

 

14. The failure of Lessor to insist upon the punctual performance of the covenants of Lessee hereunder, Lessor's failure to exercise any right or remedy available under or upon this lease, any failure of Lessor to require payment, as and when due, of any sum owing hereunder, or any extension of credit of forbearance on the part of Lessor, shall not constitute a waiver or any subsequent default hereunder. All demands for payment and performance and all notices of nonpayment under this lease are hereby waived by the Lessee.

 

15. Lessee shall not have the right to assign this lease in whole or in part, or to sublet, rent, or otherwise hire out, or part with possession of, any said equipment to any person, firm, partnership, association, or corporation other than Lessor, without the prior written consent of Lessor thereto.

 

16. This transaction is a lease and not a sale, conditional or otherwise. The parties understand and agree that Lessee does not acquire hereunder, or by payment of said rental, any right, title or interest in or to said equipment or any thereof, except the right to possess and use said equipment, so long as Lessee shall not be default in performance hereunder.   

 

17. Lessee agrees that the equipment leased hereunder will not be operated by any person other than Lessee or agents or employees of Lessee, each of whom warrants to be careful, dependable operator having a currently valid license to operate said equipment used herein, as required by law.

18. Lessee will pay all costs and expenses (including attorney fees as permitted by law) incurred by Lessor in enforcing any of the terms, provisions, covenants, and indemnities provided herein.

 

19. Lessor at any time following expiration of the minimum period of this Agreement upon seven (7) days prior written notice to Lessee, may request the Lessee to return all the equipment to the location designated by the Lessor or change any of the rate(s) for the equipment rental. If Lessor terminates this lease as stated above, said termination shall become effective only when the Lessee has returned all such equipment to the location described herein, and has paid Lessor all unpaid rents and charges allocable to the returned equipment. At the termination of this agreement for any reason whatsoever if Lessee delivers said equipment to a location other than that stated herein. Lessee shall be billed for any cost incurred in returning the equipment to the designed location. The equipment leased hereunder shall be used only in the United States. 

 

20. As used in this lease, the term "Rental Day" is a calendar day or any portion thereof, and the term "Month" is a 28 day rental month.

 

21. Lessor shall not be liable for any loss of or damage to any property left stored, loaded or transported in or upon any equipment leased hereunder; and Lessee does hereby expressly waive any and all claims and demands for said loss or damage, including, but not limited to, loss of profits, or other alleged consequential damages against the Lessor, and Lessee does further agree to save and hold the Lessor free and harmless against any and all such claims and demands.

 

22. Driver is responsible for maintaining 94 psi cold tire pressure. Driver is also responsible for maintaining proper oil level in axle hubcaps. If while on rent, an axle is damaged due to improper oil level, Lessee shall be responsible for all costs involved in repair. It is Lessee's responsibility to checked tire and oil levels on a daily basis.

 

23.  Following return of trailer, thorough inspection will be made and Lessee notified of any damages, which may cause billbacks not originally noted on preliminary inspection.