EXHIBIT 10.2
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PALLET MOLDS LEASE AGREEMENT
This Lease Agreement is made this 7th day of February 2007
(Effective Date), by and between Yorktown Management &
Financial Services, LLC,
having its principal place of business at 1613 E. 15th Street,
Tulsa, OK 74120
("Lessor"), and Greystone Manufacturing, LLC, 2601 Shoreline Drive
Bettendorf,
IA 52722 ("Lessee"). In consideration of the mutual agreements
herein made and
other good and valuable consideration, the receipt and sufficiency
of which are
hereby acknowledged, the parties agree as follows:
1. LEASE. Lessor agrees to lease to Lessee, and Lessee agrees
to
lease from Lessor, the equipment set forth in Schedule 1 (the
Equipment) hereto
at the lease rates and under the terms and conditions hereinafter
provided.
2. LEASE PAYMENT. The Lease Payments will be paid monthly as
follows:
PALLET MOLDS @ $1.00 per pallet manufactured from any
one of the five (5) PALLET MOLDS (48x40-three molds, 44x48-one
mold,
37x37-one mold)
RESIN EQUIPMENT will be leased by Lessee on the basis of
Lessor receiving a payment equal to $0.03 per pound of resin
provided from
the resin regrinding facility.
3. PAYMENT DUE DATE. All Lease Payments shall be due monthly on
the
1st day of each month (Payment Date) following the month of
production on mold.
Lessee shall pay Lessor at Lessor's address or to the followings
bank account
F&M Bank #304603. If a Payment Date falls on a weekend or
holiday, then payment
is due on the immediately preceding business day. Lease Payments
not received
within five (5) days of the Payment Date shall be delinquent and
are subject to
a late charge equal to 18% per annum.
4. OWNERSHIP OF THE EQUIPMENT. Lessor shall at all times
hereunder
be the sole owner of the Equipment and this Lease Agreement is for
leasing
purposes only, and it shall not be construed as a sale or a
contract for the
sale of the Equipment, and Lessee shall not have or acquire any
right, title or
interest in or to the Equipment except the right to use it on a day
to day week
to week basis, as provided for herein. Lessee has an option to
purchase the
Equipment at the pricing set forth in Schedule 2.
5. CONDITION OF THE EQUIPMENT. The Equipment is being accepted
by
Lessee for use under this Lease Agreement on an "as is where is"
basis and shall
be conclusively presumed to be in good repair and working order
when mobilized
by the Lessee. Upon acceptance, Lessee's obligations to pay all
lease amounts
when due for the Equipment, and otherwise to perform as required
under this
Lease Agreement, are unconditional and irrevocable.
6. LIMIT OF LESSOR'S LIABILITY. Lessor shall not be liable for
any
failure of the Equipment when operated by Lessee, or in performing
any provision
hereof, for any other cause beyond Lessor's control. Lessee will
maintain a
worker compensation policy and name Lessor under it's gene
