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.
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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. Le
