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Exhibit 10.120
EQUIPMENT LEASE
LEASE made as of the 4th day of April, 2004, by and between LJH,
LTD.,
a Texas Limited Partnership, of 377 Neva
Lane, Denison, Texas 75020, hereinafter
referred to as the Lessor, and TIMCO
Aviation Services, Inc., a Delaware
Corporation, 623 Radar Road, Greensboro,
North Carolina 27410, hereinafter
referred to as the Lessee. In consideration
of the mutual promises herein
contained, the parities hereto agree as
follows:
ARTICLE I
LEASE
EQUIPMENT LEASED
The Lessor hereby leases to the Lessee and the Lessee hereby leases
and
hires from the Lessor, the equipment and
other property described in Exhibit "A"
attached hereto. All said equipment and
other property is hereinafter called
"Equipment". Exhibit "A" shall be
supplemented as additional equipment is
acquired by Lessor and included as
Equipment leased hereunder.
ARTICLE II
TERM
DURATION
The term of this Lease commences on the date hereof and ends
February
28, 2006.
ARTICLE III
RENT
3.01
Amount. The Rent for all items of Equipment shall be the sum
of $74,076.67 per month. The Lessee shall
pay said Rent monthly on the 19th day
of each month beginning April 19, 2004, at
the office of the Lessor, or at such
other place as the Lessor may from time to
time designate in writing.
3.02
Security Deposit. Lessee has made no security deposit in
connection with this Lease.
3.03
Default. If the Lessee with regard to any item or items of
Equipment fails to pay Rent or other amount
herein provided within TEN (10) days
after the same is due and payable, or if
any execution or any other writ or
process shall be issued in any action or
proceeding against the Lessee whereby
said Equipment may be seized, taken, or
distrained, or if a proceeding in
bankruptcy, receivership, or insolvency
shall be instituted by or against the
Lessee or its property, or if the Lessee
shall enter into any arrangement or
composition with its creditors, or if
Lessee, with regard to any item or items
of Equipment, fails to observe, keep, or
perform any other provision of this
Lease required to be observed, kept, or
performed by the Lessee, the Lessor
shall, if such default shall continue for
FIVE (5) days after written notice
thereof, have the right to exercise any one
or more of the following remedies:
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(1) To declare
the entire amount of Rent hereunder
immediately due and payable as to any or all items of
Equipment,
without notice or demand to the Lessee.
(2) To sue for
and recover all Rent and other payments
then accrued or thereafter accruing, with respect to any or all
items
of Equipment.
(3) To take
possession of any or all items of Equipment,
without demand or notice, wherever the same may be located, without
any
court order or other process of law. The Lessee hereby waives any
and
all damages occasioned by such taking of possession. Any said
taking of
possession shall not constitute a termination of this Lease as to
any
or all items of Equipment unless the Lessor expressly so notifies
the
Lessee in writing.
(4) To
terminate this Lease as to any or all items of
Equipment.
(5) To pursue
any other remedy at law or in equity.
Notwithstanding any said repossession, or any other action which
the
Lessor may take, the Lessee shall be and
remain liable for the full performance
of all obligations to be performed by the
Lessee under this Lease.
All such remedies are cumulative, and may be exercised concurrently
or
separately.
3.04
Interest. If the Lessee fails to pay any part of the Rent
herein reserved or any other sum required
by the Lessee to be paid to the Lessor
within TEN (10) days after the due date
thereof, the Lessee shall pay to the
Lessor interest on such delinquent payment
from the expiration of said TEN (10)
days until paid at the rate of 18 percent
per annum.
3.05
Offset. The Lessee may not assert, any existing or future
claims, defenses, and offsets against any
Rent or other payments due hereunder.
The Lessee agrees to pay the Rent and other
amounts hereunder before deducting
any claim, defense or offset which may be
asserted by the Lessee or on its
behalf.
ARTICLE IV
USE
4.01
Manner of Use. The Lessee shall use the Equipment in a careful
and proper manner and shall comply with all
laws, ordinances, and regulations
relating to the possession, use, or
maintenance of the Equipment.
4.02
Markings. If at any time during the term of this Lease, the
Lessor supplies the Lessee with labels,
plates or other markings, stating that
the Equipment is owned by the Lessor, the
Lessee shall affix and keep the same
in a prominent place on the Equipment
ARTICLE V
INSPECTION
5.01
Lessee's Inspection. The Lessee acknowledges that he has
inspected the Equipment and finds that the
Equipment is in good condition and
repair.
2
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5.02
Lessor's Inspection. The Lessor shall, at any and all times
during business hours, have the right to
enter into and on the premises where
the Equipment may be located for the
purpose of inspection the same or observing
its use. The Lessee shall give the Lessor
immediate notice of any attachment or
other judicial process affecting any item
of Equipment and shall, whenever
requested by the Lessor, advise the Lessor
of the exact location of the
Equipment.
ARTICLE VI
ALTERATIONS AND REPAIRS
6.01
Alterations. Without the prior written consent of the Lessor,
the Lessee shall not make any alterations,
additions, or improvements to the
Equipment. All additions and improvements
of whatsoever kind or nature made to
the Equipment shall belong to and become
the property of the Lessor on the
termination of this Lease.
6.02
Repairs. The
Lessee, at its own cost and expense, shall keep
the Equipment in good repair, conditi
