Lessee agrees that the current reading of the hour meter is as set forth on
SCHEDULE A.
No portion of the rent shall be deemed to constitute payment for any equity interest
in the Equipment. Lessee agrees to payment of all rent provided for in this Lease
regardless of any problems Lessee may have with the Equipment, including its
operation, condition, capability or repair, and regardless of any claim, setoff or
defense Lessee might have against the manufacturer.
7. USE. Lessee shall use the Equipment in a careful and lawful manner, and assumes
all risks, and releases Lessor from all claims, relating to the use thereof. Lessee shall
not permit any person to operate the Equipment other than Lessee’s employees.
8. PERSONNEL TRAINING. Lessee shall ensure that all personnel utilizing the
Equipment are properly trained in the use thereof.
9. MAINTENANCE; ALTERATIONS. During the term of this Lease, Lessee shall keep
the equipment in good working condition and repair and furnish all labor, parts,
mechanisms and devices required therefore, and shall return the Equipment to
Lessor at the end of the term in the same condition as the Equipment is in on the
date hereof. Lessee shall not make any alterations, additions or improvements to the
Equipment, and shall in no way alter, remove or disable any safety devices relating
to the Equipment.
10. INSURANCE. During the term of this Lease, Lessee shall keep the Equipment
insured at Lessee’s expense against risks of loss or damage to the Equipment, such
coverage to be in the amount of the replacement value or fair market value of the
Equipment, whichever is greater. During the term of this Lease, Lessee will obtain
and maintain, at its own expense, public liability and property damage insurance
with respect to the Equipment or the use thereof, with minimum limits of $1,000,000
combined single limit. Prior to the commencement of the term of this Lease, Lessee
shall furnish Lessor with a Certificate of Insurance or other evidence satisfactory to
Lessor demonstrating that such coverages are in place and the Lessor has been
named as loss payee/additional insured with respect to such coverages.
11. LIENS; TAXES. Lessee shall keep the Equipment free and clear of all levies, liens,
and encumbrances. Lessee shall (a) make and file all declarations and returns in
connection with all charges and taxes (local, state, and federal), which may now or
hereafter be imposed upon or measured by the leasing, rental, possession or use of
the Equipment, excluding, however, all taxes on or measured by Lessor’s net
income, and (b) pay all such charges and taxes. In the event that Lessor shall elect
to make and file any or all declarations and returns in connection with such charges
and taxes or to pay the same, then Lessee shall reimburse Lessor, upon demand of
Lessor, for any and all such charges and taxes applicable to the equipment.
12. INDEMNITY. Lessee shall and does hereby agree to indemnify and save Lessor, its
agents, successors and assigns, harmless from any and all liability, claims, damages
or loss, including reasonable attorney’s fees, arising out of Lessee’s possession,
leasing, operation, control or use of the Equipment during the term of this Lease.
Lessee shall, at Lessor’s discretion, appear and defend any such action and pay the
cost of the defense of any such action brought against Lessor, either alone or in
conjunction with others, upon any such liability or claim. Lessee shall satisfy, pay
and discharge any and all judgments and fines that may be recovered against Lessor
in any such action, provided that Lessor gives Lessee written notice of any such
claim. The obligations to indemnify with respect to matters occurring or arising
during the term of this Lease shall continue in full force and effect notwithstanding
the termination or expiration of this Lease.