|
EQUIPMENT LEASE AGREEMENT
This Equipment Lease Agreement ("Agreement") is made and entered
into as of
March 21, 2005, 2005 by and between Commodity Express
Transportation, Inc., a
South Carolina corporation ("Lessor") AND Commodity Express
Transportation,
Inc., a Delaware corporation, ("Lessee") and Power2Ship, Inc., a
Florida
corporation, ("Lessee") (collectively referred to as the
"Parties"). Each
Lessee is jointly and severally liable for the lease payments
and performance of
all other terms of this Agreement. A judgment entered against
one Lessee shall
be no bar to an action against the other Lessee.
The Parties agree as follows:
1. EQUIPMENT: Lessor hereby leases to Lessee the commercial
trailers used to
haul dry commodities described in Schedule A ("Equipment"),
which is hereby
incorporated into this Agreement
2. LEASE TERM: The initial date of lease for all Equipment
listed in Schedule A
is March 21, 2005. Each individual trailer in the lease has a
specified term,
depending on the age of the trailer, as described in Schedule A.
As used in
this Agreement, "Lease Term" means from March 21, 2005, until
the individual
trailer in question is surrendered based upon the attached lease
schedule A.
3. LEASE PAYMENTS: Lessee agrees to pay to Lessor as rent for
the Equipment the
amounts specified in Schedule A ("Rent") each month in advance
on the first day
of each month at:
c/o Al Stokes
354 South Chimney Ln.
Columbia, SC 29209
If during the Lease Term any individual trailers are damaged
beyond repair and
Lessor is reimbursed for the value of said trailers, according
to the terms of
Section 13 of this Agreement, then the rents shall be reduced
accordingly.
4. LATE CHARGES: If any amount under this Agreement is more than
five calendar
days late, Lessee agrees to pay a late fee of five percent (5%)
of the amount
that is late. The late fee will increase by five percent (5%)
each subsequent
30 days that the amount is late.
5. SECURITY DEPOSIT: The Parties, and additional parties, have
agreed to a
series of mutual covenants and concessions in a separate
document entitled
Mutual Agreement, dated on or near the date of this Agreement.
In consideration
of the covenants and concessions made in the Mutual Agreement,
the Parties agree
to waive the requirement of a security deposit associated with
this Agreement.
6. DELIVERY: Lessee shall acquire control of the Equipment on
March 21, 2005.
Individual trailers may be at varying locations on that date.
Lessor has no
duty to physically deliver any Equipment to Lessee at the
beginning of the Lease
Term. Lessor will not be responsible for any costs associated
with delivery of
Equipment to Lessee at the beginning of the Lease Term.
<PAGE>
7. DEFAULTS: If Lessee fails to perform or fulfill any
obligation under this
Agreement, Lessee shall be in default of this Agreement. Subject
to any statute,
ordinance or law to the contrary, Lessee shall have seven (7)
business days from
the date of notice of default by Lessor to cure the default. In
the event Lessee
does not cure a default, Lessor may at Lessor's option (a) cure
such default and
the cost of such action may be added to Lessee's financial
obligations under
this Agreement; or (b) declare Lessee in default of the
Agreement. If Lessee
shall become insolvent, cease to do business as a going concern
or if a petition
has been filed by or against Lessee under the Bankruptcy Act or
similar federal
or state statute, Lessor may immediately declare Lessee in
default of this
Agreement. In the event of default, Lessor may, as permitted by
law, re-take
possession of the Equipment. Lessor may, at its option, hold
Lessee liable for
any difference between the Rent that would have been payable
under this
Agreement during the balance of the unexpired term and any rent
paid by any
successive lessee if the Equipment is re-let minus the cost and
expenses of such
reletting. In the event Lessor is unable to re-let the Equipment
during any
remaining term of this Agreement, after default by Lessee,
Lessor may at its
option hold Lessee liable for the balance of the unpaid rent
under this
Agreement as if this Agreement had continued in force.
8. POSSESSION AND SURRENDER OF EQUIPMENT: Lessee shall be
entitled to
possession of the Equipment on the first day of the Lease Term.
At the
expiration of the Lease Term, Lessee shall surrender the
Equipment to Lessor by
delivering the Equipment to Lessor or Lessor's agent in good
condition and
working order, ordinary wear and tear excepted, as it was at the
commencement of
the Agreement. Delivery of the Equipment shall be to a location
within 75 miles
of Columbia, South Carolina, mutually agreed upon by the
Parties. If the
Parties agree to deliver the Equipment to a location beyond a 75
mile radius of
Columbia, Lessee may seek recovery from Lessor of the cost of
delivery of the
Equipment beyond the 75 mile radius.
9. USE OF EQUIPMENT: Lessee shall only use the Equipment in a
careful, proper
and legal manner and will comply with all laws, rules,
ordinances, statutes and
orders regarding the use, maintenance of storage of the
Equipment.
10. CONDITION OF EQUIPMENT AND REPAIR: Lessee or Lessee's agent
has inspected
the Equipment and acknowledges that the Equipment is in a
condition as noted on
the attached inspection reports. The Parties agree that if any
individual
trailers covered by this Agreement have damage in excess of
$250.00 then Lessee
shall cause such damage to be repaired, and will invoice Lessor
for such
repairs. Any repairs made pursuant to this Agreement will be
billed at a fixed
labor rate of $25.00 per hour, and actual cost for materials.
Lessee shall
provide detailed invoices to Lessor for these repairs.
|