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HomeMy WebLinkAbout42-86 RESOLUTIONRESOLUTICN NO• 42=86" A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE TW RENTAL AGREEMENTS WITH WILLIAMS FORDTRACTOR& EQUIPMENT CC{v1PANY FOR MOWING EQUIPMENT POR THE PUBLIC WORKS MAINTENANCE POOL. BE IT RESOLVED BY TIM BOARD OF DIRECTORS OF ME CITY OF FAYETTEVILLE, ARKANSAS: That the Mayor and City Clerk are hereby authorized and directed to execute two rental agreements with Williams Ford Tractor & Equipment Ccsttpany for mowing equipment for the Public Works Maintenance Pool. A copy of the rental agreements authorized for execution hereby are attached hereto marked Exhibits "A" and "B" and made a part hereof. PASSED AND APPROVED this 18th day of II 1 row 11 • I ?Cleft 4:6E404:V / • 4"/I104—w.twed*Agr" APPROVED Mayor March , 1986. ykii.d between WITNESSETH: That in consideration of the payments and rentals hereinafter provided for and of the terms and conditions hereof, the Lessor hereby agrees to lease and does lease to the Lessee, and the Lessee hereby agrees to lease from the Lessor, the following described equipment belonging to the Lessor, to wit: EQUIPMENT LEASED (Kind of Machine, Make, Model, Serial Number, Description) T RENTAL AGREEMENT a e and enteied into at FayetteVine, AR Williams Ferd Tractor & Equ i. Co. of Fayetteville, AR City of Fayetteville ‘f Fayetteville, AR this 1 2MICROF&Flk, day of April ,n 86 , hereinafter called LESSOR, and ,hereinafter called LESSEE; w Ford 5610 tractor, sin C733185 ,\ • new Ford 777B3 loader, s/n WL56183 ew Rhino FS15 cutter, sin 1929 1 new Ford 12GT L & G tractor, sin 0260 F.O.B. Lessor's place of business, or Above equipment to be used in grounds maintenance at or near Fayetteville Wash. (Town) (County) TERM OF LEASE: The term of this lease shall be for a period of thirty six (36) months 1 day ofA19 86 and terminating the 301 day of March pril ' 9 9 a m -p m Hour meter reading ormileage 2750.00 750,00 1000.00 Toillqa$ 5250.00/yr operations on Fayetteville Airport ID the State a Arkansas Equipment delivered to Lessee: Date , 19 Time , beginning with the Equipment returned to Lessor: Date 19 Time a m -p m Hour meter reading or mileage RENTAL RATES AND PAYMENT: The rental rates set forth in this contract do not include sales, use or occupational taxes. If and when such taxes are incurred by law, these amounts shall be added to the rental payments due under this contract. A. If this equipment is leased on a monthly basis, -the Lessee agrees to pay for use of the equipment, rental as follows: payable with order and covering first month's rental, receipt of which is hereby acknowledged by Lessor;and ce payable in advance on the day of each month in installments of $ each ieg with the month of ' ,19____. AS. If this 4i ment is leased on an acreage, ton, mileage Or any basis other than time, the rate shall be $ per . Rental under this lease shall be payable $ , receipt of which is hereby acknowledged by Lessor, and the balance of $ , or upon return of equipment to Lessor's place of business. annual 15,750.00 in rental C. If this equipment is leased on aktogrtexIslogsmappayel basis, the Lessee agrees to pay a total of $ as follow: 8 5250.80 payable with order, receipt of which is hereby acknowledged by Lesson and the balance payable installments of $ 5250.00 eael due and payable on in two ( 2) 4/1/87, 4/1/88, % Rental payments shak be made to Lessor at Lessor's address above set forth except that, if Lessee is notified to do sor by Lessor or his assignee, payments shavOe maappei.scuahoate7‘i ADDITIONAL RENT: It is contemplated that the equipment will be operated for not more than hours in any one day; hours in any one week; hours in any one month and Lessee agrees that he will pay additional rental at pro rata the applicable daily, weekly or monthly rate, for each hour the equipment is used in excess of such time. If equipment is leased for more than thirty (30) days, the additional rent for excess hours shall be paid on the first day of the month folloWing such use, which rent shall be credited on the monthly installments•of rent due hereunder in the inverse order of their due date. If there is an hour meter furnished, Lessee agrees to keep it connected to the equipment and in gooeworking condition/ht./^all ti and is to be used as the conclusive basis of the number of hours of operation.// , A,-, Not applicable::272-7r fr. PRIVILEGE OF PURCHASE OPTION: Lessee is granted an option to purchase the equipment leased hereunder for th SIMI of with order plus deposit of $ becoming due and payable $ . This option must be exercised on or before 19 and the balance due paid in cash. Option to purchase shall not be deemed exercised until Lessee's (buyer's) written notification to that effect is received by Lessor (seller). All rentals previously received shall be credited at % to apply on the purchase ftce. This lease must be in good standing before the option can be gtic • exercised, and the option is nontransferable. \ - No alteration or modification of this Lease is valid unless in writing and signed by the parties hereto. Lessee acknowledges receipt of a •_, signed copy hereof. , ALL TERMS AND CONDITIONS STATED ON THE CEVERSE HEREOF ARE A PART OF THIS CONTRACT. IN WITNESS WHEREOF, the parties hereto have on the day and year first above written hereunto set their hands and seals. ., BY SIGNING THIS LEASE, LESSEE AGREES TO THE TERMS AND CONDITIONS SET FORTH ON THE FACE AND REVERSE SIDE HEREOF. ANY DIFFERENT OR ADDITIONAL TEAMS, WHETHER WRITTEN OR- OTHERWISE, ARE HEREBY OBJECTED TO AND SHALL HAVE NO LEGAL FORCE. IbAPPLICABILITY WHATSOEVER. LESSEE City of Fayette ;:i. 1,0' , . ../ ' Accepted and Approved 4/1 . ,is 86 ..e. 1• / / 7/AWte•Vm7.-7 By/ By Witness Witness Phone No.• FORM FER 528 (REV. 1981) ALL RIGHTS RESERVED BY NATIONAL FARM & POWER EQUIPMENT DEALERS ASSOCIATION, ST. LOUIS, MO. 63127 /—% ---;7107flif? i" • Az'act 6-14°1--7 LESSOR Williams Ford Tractor & Equip. CO. tet PRINTED IN U.S.A. RETURN Of' trQUI, t Lessee agrees, at thesanitation of the term hereof or sooner termination of this lease, to return, transporta- tion costa 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 u 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 and damages to the equipment arising from any cause whatsoever that may occur during the life of this lease It is agreed by the pectin hereto, that the value as hereinbefore stated 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 theretoftwe 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 equip ment, Lessee shall be credited with the amount of insurance payment received by Lessor under insurance policies, if an insurance recovery a effected thereunder. Lessee, in addition to liability for loss or damage herein otherwise provided for, shall be liable for all loss and derange to said equipment caused by strikes, riot and civil commotion arising from any cause whatsoever. INSPECTION: Lessee shall. whenever requested, advise Leaser 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 * 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 lease. WARRANTY: LESSEE ACKNOWLEDGES THAT EACH ITEM OF EQUIPMENT IS OF A SIZE, DESIGN AND CAPACITY SELECTED BY LESSEE AND THAT THE SAME IS SUITABLE FOR LESSEE'S INTENDED PURPOSES. LESSORS SOLE AND EXCLUSIVE WARRANTY IS AS FOLLOWS: LESSOR WARRANTS TO LESSEE THAT THE EQUIPMENT COVERED BY TIM LEASEVILL BE DELIVERED TO LESSEE FREE FROM DEFECTS IN MATERIAL AND WORKMANSHIP WHEN USED UNDER PROPER AND NOW CONDITIONS. SHOULD ANY FAILURE TO CONFORM TO THE ABOVE SOLE AND EXCLUSIVE WARRANTY APPEAR DURING THE TERM OF THIS LEASE, AND PROVIDED NO SUCH DEFECTS ARE IN ANY WAY ATTRIBUTABLE TO THE FAULT OF I-FSSEE, I.F.SSOR WELL REPAIR OR REPLACE THE EQUIPMENT; AT LESSOR'S OPTION. THE FOREGOING WARRANTY SHALL NOT APPLY TO DAMAGE OR DEFECTS CAUSED BY ORDINARY WEAR AND TEAR AND IS EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES WHETHER WRITTEN, ORAL, EXPRESS OR IMPLIED (INCLUDING ANY WARRANTY ON MERCHANTABILDT OR FITNESS FOR PURPOSE). THE REMEDIES UNDER THIS WARRANTY ARE EXCLUSIVE AND LESSOR NEITHER ASSUMES NOR AUTHORIZES ANYONE ELSE TO ASSUME FOR IT ANY OTHER OBLIGATION. THE ABOVE SOLE AND EXCLUSIVE WARRANTY SHALL CONSTITUTE LESSEE'S SOLE REMEDY AND THE SOLE LIABILITY OF LESSOR UNDER ANY LEGAL THEORY OR THEORIES WHATSOEVER INCLUDING WITHOUT LIMITATION UNDER WARRANTY, TORT FRAUD OR CONTRACT LEGAL THEORY. THE SOLE AND EXCLUSIVE WARRANTY DOES NOT INCLUDE REIMBURSEMENT FOR THE EXPENSES OF LABOR, TRANSPORTATION, INSTALLATION REMOVALFROM THE LINE OR ANY OTHER EXPENSES WHICH MAY BE IN- CURRED BY LESSEE. IN NO EVENT SHALL LESSOR BE LIABLE FOR ANY PENALTY OR FOR ANY SPECIAL. LIQUID- ATED, INDIRECT OR CONSEQUENTIAL DAMAGES, SUCH AS BUT NOT LIMITED TO LOST PROFITS OR REVENUES, TIME LOST OR ANY OTHER DAMAGE OR INJURY SUFFERED BY LESSEE OR ANY OTHER PERSON WHILE THE EQUIPMENT IS INOPERABLE FOR ANY REASON AND NO DEDUCTIONS SHALL PZ MADE FORM RENTAL PAYMENT THEREFOR THE REL -MPT AND ACCEPTANCE BY THE LESSEE OF THE EQUIPMENT SHALL CONSTITUTE ACKNOWLEDGEMENT THAT THE EQUIP- MENT IS IN GOOD, SAFE AND SERVICABLE CONDITION, AND FIT FOR USE, UNLESS LESSEE MAKES A CLAIM TO THE CONTRARY TO LESSOR WITHIN THREE (3) DAYS AFTER RECEIPT OF THE EQUIPMENT SUPPLIES, MAINTENANCE AND REPAIRS: Lessee shall be re- sponsible for and shall bear the expense of all fuel, lubrication, and maintenance for each item of equipment. Lessor undertakes no obliga- tion with respect to repairs or replacement of parts, attachments, accessories or nuipment except pursuant to written warranty as pro- vided in the section of this lease entitled "WARRANTY". Lessee shall, at its expense, 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 at regular intervals as suggested in manaufacturees service manuaL receipt of a apy of which $ 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 effect- ing maintenance and repairs, it will have such work performed only by qualified persons who are 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 tm operated only by competent employees of Lessee and shall not be used beyond its normal capacity. When equipment is not in use, it will be kept in a protected area LIAB perso posses scribed, an r - Lessee further ll liibility insu coverage, such insuran injury, death or occassioned or caused by or ion with theuermli A and that such insurance shall an am d issued by an insurance. =y sa ' and shall i - Lessoragainstor Habib y and every kind. All such ins i II contain an agree of the insuring company not to cancel the sa ntil at :: least ten (10) days notice to Lessor and its assign. Lessee shall promptly deliver to Lessor evidence of said insurance. LNRURANCE: Lessee shall keep the equipment insured against all riski of loss or damage by fire end nth other risks as are coy ed b endorsement commonly known as supplemental or extended for not less than the market value of the equipment; a 44 4" public liability and property dams ':4* -4-z ' 414011 j in the amounts of not less than death to any one person, not less than in reaper 1 o any one accident, and not less than 3100,000 in reSpeet to property li map. All such insurance shall insure both Lessor and Lessee. The Lessee may effect such coverages under its blanket policies. All such policies shall be written by companies presently insuring thwiLessee or ;other companies reasonably satisfactory to the Lessor, and certificates showing such coverages to be in effect shall be furnished to Lessor upon request. Each insurer shall agree, by endorsement upon the certifitabe or certificates issued by it by independent instrument furnished to Lessor, that it will give Lessor thirty (30) days' written notice before the policy in question shall be altered or cancelled and that aqy 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 (0 toward the -replacement, .restoration or repair of the equipment or (b) toward payment of the obligations of Lessee hereunder. SUB -LEASING: The Lessee aka haven right to sub -lease the said equipnutnt nor remove it from the County and State specified in this contract without the written consent of the Lefler., 'fITLE: Title to the equipment shall at all times be vested in the unless transferred to the Lessee through sale. The hall Lessor immediate notice of any levy attempted u p or if said equipment from any cause becomes liab to gtrgy . ' II loss ch aim 9 payment when due, s aitemp to sell or encumber any inte e equi meet, shall teas ng business as a going concern, s o have instituted bim any proceedings under an ruptcy or in- solvency law, shall an assignment for luta of creditors or shall fail to comply with a ther p e of this Lease, or if any a eta:men, execution. writ: etc. process is levied *pint the equipinent or any of Lessee's y, any reason Lessor deems itse unsafe, the Lessor Immediitely %bon notice declare the entire balance • rental payments due a able together with all e mu llection by suit or otherwise, in reasonable attorneys any of the above events shall occur. Lessee ees to surrender possession of the equipment on demand and UMW' may enter upon Lessees 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 defused, as additional rent, the amount or amounts of any such costs sad taxes paid by Lessor. It is the intent of this Agreement that Lessor shall receive the rent hereunder as ant return on the equipment leased hereunder. COMPLIANCE WITH LAWS: The Lessee agrees to comply with and conform to all Municipak 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 equip- ment. . injury and propel operation or transportation 01 hold Lessor and its assigns ha protect the Lessor cover ASSIGNMENT: A. Lessee agrees that Lessor may assign this Lease, and all right, title and interest of Lessor in and to the equip -rent, and all rents due or to become due to Lessor hereunder (of whieh assignment Lessee hereby waives notice) and Lessee agrees to recognize such assignment. Lessee's obliption 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 cif 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 Lean 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 strictoomphance 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 kw Or in equity. Tractors'. -Equipment Williams Ford Tractor & Equipment Co. Box 1346 Fayetteville, Arkansas 72701 Ford Tractors New Holland Equipment Attachment to lease agreement: Phone 442-8284 4/4/86 Lessee's obligations to pay any amounts due for the year. succeeding the current year are contingent upon appropriation or approval of funds for that purpose by the Fayetteville Board of Directors. Therefore, Lessee may terminate this lease agreement and its futUre monetary obligations hereunder effective as of the end of any succeeding year (the "termination date".) All obligations of Leasee to make payments due after the termination date will cease and all interest of Lessee in the leased equipment will terminate as of the termination date. : r -EutlI .- INC 1 ' PMENT-RENTAL AGREEMENT -This AGREEMENToi d ndantered into at '--- - ' ..--T.P .11-14etteville,:AR::.i Vi'indbawetm :41.1"liams Ford Tractor 4-Equip.C6.- :9- - - !”-*, --------;-------- of Fayetteville, AR:. IC- - Cit3varFO5i-e-ttril1e �f Fayetteville, AR this dayof April 1.9 86 hereinafter called LESSOR. and " • ; ,hereinafter called LESSEE: WITNESSEWThat in consideration of the payand rentals hereinafter provided for, and of the terms and conditions hereof, the Lessor hereby agrees W lease and does lease to the Lessee, and the Lessee hereby agrees to lease from the Lessor, the following - described equipment belonging to the Lessor, to wit - - _ EQUIPMENT LEASED (Kind of Machine, Make, Model, Serial Number, Description) -„ 1 deed'Ford 530A tractor, sin C687732 w/Rhino Saturn 8 cutter, sin 2348 -1 new4orttkraifor,,S/n 03059 w/5' rearAnower . l'iteet‘FOr trator, sin 4736 wibelly mower )';•1'netirFord 121.0 tra 00r41 -sin W0736 w/bellV mower- F.O.B. Lessor'i Rite of business, or • 1 os Above equipment to be used in rnaint‘ennacP -" • 'operations -City -property --lit or near Total Value $ $3500.00 2000.00 2000.00 1700.00 9200.00/year Fayetteville Wash.Arkansas in the State of (Town) 2WD - .4- (County) . ..... . - TERM OF LEASE: The term of thislease shall be for a period of thirty SiX (36):monthl -1 , beginning with the -.. ''' 4- • day 0/ April 272.--' ' - --r- .19 ..:--•86 arid terMinating the: 3 - -'' --day of -• Atal. '' .if -7.;;-:-.49 . 89.....-,4,..-„. .L.-. • . .. ,. , , . . .. Equipmenildelivered to Lesse:eDate )[7:-<-- ---- -•-vii .), 19 .Time - --- .--2. - a m -p m Hom Hour meter rea g or m eage ... . . , . Equipmen returned to Lessem Date ' - • - , 19 Time - a.m -p m. Hour meter reading or mileage RENTAL RATES AND 'PAYMENT: The rentalcrates set forth in this cOntract do not include sales; use or occupational taxes. If and when such taxes are Meanest by law, these amounteihall be added to the rental payments due under this contract " ...; A. H this equipment is liksed on a monthly basii, the Lessee agrees to pay for use of the equipment, rental as follows: . ,. _ payable with order and covering first month's rental, receipt of which is hereby acknowledged by Lessor; and ..1 .. , pe balance payable in advance on the _day of each month in installments of $ each -",/ ,commencing witlkIeiont of, . -, • Btletkaq`hipMeitiase\thiii a , ' ' Nam-aillv4tge or any basis other than time, the rate shall be $ . . ... . _ , . % . I • Rental under ibis lease shall be payable $ .., , , with order plus deposit of $ . r ipt of which is hereby atknowledged by Lessor, and the balance of $ . ...„... • , _-. , becoming due and pay le • , or upon return of equipment to Lessor's place of business. C. If this equipmen lea quarterly or seasonal basis, the Lessee agrees to pay a total of $ 27,600.00 in rental 92 as follow: $ payable with order, receipt of which is hereby acknowledged by Lessor: and the balance payable • ' in .....-------12- - 0 each due and payable onl— $ 9200.00 4/ /87 and 4/4/88 7 ' 4 i . _.....------" per Rental payments shall' be 'iriade to Lessorat Laddress above se ealOr's aadbt for h 4 ha ...• Lessee is notifiedLto do so by Lessor or . .his assignee, payments sball:be made to such aisignee. ..• .‘,.- a.. -1.3-C,.(4> . 0 • fr‘im* .ADDITIONAL RENT: It iieolitemplated thatthe equipm4t4Fill ll'eFerated for not mo an ' boars in any one day; I.. r,` ;...• hours in any one week; inc. nazi :the applicable daily, weekly or monthly.. rate - ,'7161: each honf:the--eOliteinent Iilased 'iii:._eacesa pf ' such, time: If equipment is 4. 'hourain any one month antl±eisee agrees that he will pay additional rental at _ . - .......... • r • C . r • • • r:*ased for more than thirty (30) rdays, the additional rent for excels:hears shall be wad. on the first day: of the month following such. ..i.ase, which rent shall be credited owilie monthly installments of rent due hereunder in the inverse order of their tle date.• - • . .- . :-..---..-.-... - If there is an hour meter furniShed, Lessee agrees to keep it connected. to the equipment d n orking condition at all times, ' and is to be used as the condusiveliasis of the number of bars of operation. i ? . - •• r .0 PRIVILEGE OF PURCHASE OPTION: Lessee is granted an opt A ape e qui e t eased hereunder for the sum of $ :This option must be exercised on or before / . ' 19 and the balance due paid in cash. Option to purchase shall not be deemed exercieed until Lessee's (buyer's) written notification to that effect is received by Lessor (seller). All rentals previously received shall be credited at a-='1/21- ' ah'bo apply on the purchase price. This lease must be in good.standing before the option can be No alterationor amdification of this geese is vaiid unless in writing and Signed by the parties hereto. Lessee acknowledges receipt of a 1. • signed copy hereof. 't-*•• ALL TERMS AND CONDITIONS STATED ON THE REVERSE HEREOF ARE A PART OF THIS CONTRACT. .„ -.. c. .., - IN WITNESS WHEREOF, the parties hereto have on the day and year first above written hereunto set their hands and seals. BY SIGNING THIS LEASE. LESSEE AGREES TO THE TERMS AND CONDITIONS SET FORTH ON THE FACE AND REVERSE SIDE .._ . .. HEREOF. ANY DIFFERENT OR ADDITIONAL TERMS. WHETHER WRITTEN OR OTHERWISE, ARE HEREBY OBJECTED TO AND -;:c SHALL NO LEGAL FORCE OR APPLICABILITY WHATSOEVER. ty f Accepted and Approved -' By Witness Witness Phone No. FORM FIR 528 (REV. 1981) ALL RIGHTS RESERVED BY NATIONAL FARM 8 POWER EQUIPMENT DEALERS ASSOCIATION, ST. LOUIS, MO. 63127 LESSOR Williams Ford Tractor & Byy) _ - PRINTED IN U.S.A. RETURN Or' EQUEIMENT: Lessee agrees, at the expiration of the term hereof or sooner termination of this lease, to return, transporta- tion 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 and damages to the equipment arising from any cause whatsoever that may occur during the life of this lease. It is agreed by the parties hereto, that the value as hereinbefore stated 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 equip- ment, Lessee shall be credited with the amount of insurance payment received by Lessor under insurance policies, if an insurance recovery is effected thereunder. 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 lease. WARRANTY: LESSEE ACKNOWLEDGES THAT EACH ITEM OF EQUIPMENT IS OF A SIZE, DESIGN AND CAPACITY SELECTED BY LESSEE AND THAT THE SAME IS SUITABLE FOR LESSEE'S INTENDED PURPOSES. LESSORS SOLE AND EXCLUSIVE WARRANTY IS AS FOLLOWS- LESSOR WARRANTS TO LESSEE THAT TIIE EQUIPMENT COVERED BY THIS LEASE WILL BE DELIVERED TO LESSEE FREE FROM DEFECTS IN MATERIAL AND WORKMANSHIP WHEN USED UNDER PROPER AND NOR- MAL CONDITIONS. SHOULD ANY FAILURE TO CONFORM TO THE ABOVE SOLE AND EXCLUSIVE WARRANTY APPEAR DURING THE TERM OF THIS LEASE, AND PROVIDED NO SUCH DEFECTS ARE IN ANY WAY ATTRIBUTABLE TO THE FAULT OF LESSEE, LESSOR WILL REPAIR OR REPLACE THE EQUIPMENT, AT LESSOR'S OPTION. THE FOREGOING WARRANTY SHALL NOT APPLY TO DAMAGE OR DEFECTS CAUSED BY ORDINARY WEAR AND TEAR AND IS EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES WHETHER WRITTEN, ORAL. EXPRESS OR IMPLIED (INCLUDING ANY WARRANTY ON MERCHANTABILITY OR FITNESS F'011 PURPOSE). THE REMEDIES UNDER THIS WARRANTY ARE EXCLUSIVE AND LESSOR NEITHER ASSUMES NOR AUTHORIZES ANYONE ELSE TO ASSUME FOR IT ANY OTHER OBLIGATION. THE ABOVE SOLE AND EXCLUSIVE WARRANTY SHALL CONSTITUTE LESSEE'S SOLE REMEDY AND TIIE SOLE LIABILITY OF LESSOR UNDER ANY LEGAL THEORY OR THEORIES WHATSOEVER INCLUDING WITHOUT LIMITATION UNDER WARRANTY. TORT. FRAUD OR CONTRACT LEGAL THEORY. THE SOLE AND EXCLUSIVE WARRANTY DOES NOT INCLUDE REIMBURSEMENT FOR THE EXPENSES OF LABOR. TRANSPORTATION. INSTALLATION, REMOVAL FROM TI1E LINE OR ANY OTHER EXPENSES WHICH MAY BE IN- CURRED BY LESSEE. IN NO EVENT SHALL LESSOR BE LIABLE FOR ANY PENALTY OR FOR ANY SPECIAL, LIQUID- ATED INDIRECT OR CONSEQUENTIAL DAMAGES, SUCH AS BUT NOT LIMITED TO LOST PROFITS OR REVENUES. TIME LOST OR ANY OTHER DAMAGE OR INJURY SUFFERED BY LESSEE OR ANY OTI1ER PERSON WHILE THE EQUIPMENT IS INOPERABLE FOR ANY REASON AND NO DEDUCTIONS SHALL BE MADE FORM RENTAL PAYMENT THEREFOR. THE RECEIPT AND ACCEPTANCE BY THE LESSEE OF THE EQUIPMENT SHALL CONSTITUTE ACKNOWLEDGEMENT THAT THE EQUIP- MENT IS IN GOOD. SAFE AND SERVICABLE CONDITION, AND FIT FOR USE, UNLESS LESSEE MAKES A CLAIM TO THE CONTRARY TO LESSOR WITHIN THREE 13( DAYS AFTER RECEIPT OF THE EQUIPMENT SUPPLIES, MAINTENANCE AND REPAIRS: Lessee shall be re- sponsible for and shall bear the expense of all fuel, lubrication. and maintenance for each item of equipment. Lessor undertakes no obliga- tion with respect to repairs or replacement of parts, attachments, :Accessories or equipment, except pursuant to written warranty as pro- .(ded in the section of this lease entitled "WARRANTY". Lessee shall, JL its expense, 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 at regular intervals as suggested in manaufacturer'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 effect- ing maintenance and repairs. it will have such work performed only by qualified persons who are satisfactory to Lessor. OPERATION: Lessee agrees that the equipment shall be used solely in the conduct of Lessees 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. When equipment is not in use. it will be kept in a protected area. /or ..S.-t-z.e..cose-C.c.. 297 ANDIXS(RANCE: Lessee shall br liable for all expenses, personal i v and property damages and claims arisi oik; sof it.4 possession. op ion or transportation of the eq • nt, befein de- scribed, and shall he • Lessor and its assigns 1 ess,therefrom. The 'Lessee further ag . ,•tect the Le • ith full liability insurance coverage, such insurance o oss. injury. death or damage occassioned or caused bv•ellen with -the equipment, and • that such insurance sh le in an amo nd issued by an insurance company satisfactor o Lessor. and shall fur •rotect Lessor against public liability any and every kind. All such in rice shall contain an agreem of the insuring company not to cancel . -ame until at least ten 110) days' notice to Lessor and its assigns. essee shall promptly deliver to Lessor evidence of said insurance. INSURANCE: Lessee shall keep the equipment insured against all risks of loss or damage by lire 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 equi ment; a d shall carry public liability and property dame e in the amounts of not less than he equipment trifer,-.7. bodily injury or . death to any one person, not less than n respect to any one accident, and not less than $100.000 in respect to property damage. All such insurance shall insure both Lessor and Lessee. The Lessee may effect such coverages 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 coverages to be in effect shall be furnished to Lessor upon request. Each insurer shall agree. by endorsement upon the certificate or certificates issued by it by independent instrument furnished to Lessor, that it will give Lessor thirty 130) 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 Ib) toward payment of the obligations of Lessee hereunder. SUB•LEASING: The Lessee shall have no right to sub -lease the said equipment nor 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 sale. The Lessee s Lessor immediate notice of any levy attempted upon said e or if said equipment from any cause becomes liable to seiz indemnify sso agai st all loss a dame DEFAULwhe due, II attempt to II or encumber any intern in e equipment, shall ce - •oing business as a going concern, sh nstitute or have instituted aga him any proceedings unde 3? bankruptcy or in- solvency law, sha e an assignment e benefit of creditors or shall fail to comply wit • other vision of this Lease, or if any attachment, execution, writ, ether process is levied against the equipment or any of Lessee's perty, o • any reason Lessor deems itself unsafe, the Lessor y immediately an out notice declare the entire balance o e rental payments due and •gle together with all expenses Ilection by suit or otherwise, Inc u ma& attorneys fee any of the above events shall occur, Lessee agrees to surrender ssion 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 equip- ment. 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 th's 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. *-Equipment Williams Ford Tractor & Equipment Co. Box 1346 kkansas 72701 Ford Tractors New Holland Equipment Attachment to lease agreement: 1\EINHHOULPH Hi\nt Phone 442-8284 4/4/86 Lessee's obligations to pay any amounts due for the year succeeding the current year are contingent upon appropriation or approval of funds for that purpose by the Fayetteville Board of Directors. Therefore, Lessee may terminate this lease agreement and its future monetary obligations hereunder effective as of the end of any succeeding year (the "termination date".) All obligations of Lessee to make payments due after the termination date will cease and all interest of Lessee in the leased equipment will terminate as of the termination date.