Agenda - 3-21-16 Reg. Meeting - Laserfiche WebLink

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C15 EQUIPMENT LEASE THIS EQUIPMENT LEASE ("Lease") is made and entered as of the 21 " day of March, 2011 by and between LEE COUNTY, a North Carolina county and body politic ("Lessor') and FRONTIER SPINNING MILLS, INC., a North Carolina corporation ("Lessee"). In consideration of the representations and covenants herein contained, the parties agree as follows: 1. Lease of Egnipment. Lessor hereby rents and leases to Lessee, and Lessee hereby rents and leases from Lessor the equipment described below (the "Egnipment"): Approximately 8,500 sets of plastic pallets used for shipping yam, each set to be one shippable unit, to be purchased by Lessor from a responsible, responsive, and qualified vendor at a cost of not more than $120.00 each not to exceed a total cost of $1,000,000, including sales tax paid by the Lessor. Aprl' 2. Term. This Lease shall be for an initial term of five years, commencing Nlamh- 21, 2 1 and ending April -22, 2016. Maw 3. Rent. As rental for the Equipment, Lessee agrees to fay Lessor Thirteen Thousand Two Hundred Ninety and 69/100 Dollars (13,290.69) per month on the 21 day of each month during the term of this Lease. All payments required to be made to Lessor hereunder shall be made at Lessor's principal office or as may be otherwise directed by Lessor. 4. Late Charges. Should Lessee fail to pay all or any portion of the rent required to be paid to Lessor within ten (10) days after the due date thereof, Lessee shall pay a late payment charge equal to four percent (4%) of the late rental payment or late portion of the rental payment. 5. No Abatement of Payments. There shall be no abatement or reduction of payments by Lessee for any reason, including without limitation, any defense, recoupment, set-off, counterclaim, or any claim arising out of or related to any defects, damages, malfunctions, breakdowns or infirmities of the Equipment. Lessee assumes and shall bear the entire risk of loss and damage to the Equipment from any cause whatsoever, it being the intention of the parties that the rental payment shall be made in all events. 6. Use of Equipment. The Equipment shall be used only for lawful business purposes, for purposes for which it was designed or intended and in compliance with all laws, rules and regulations of all governmental entities or agencies and insurers of the Equipment. Lessor acknowledges that Lessee will use the Equipment for the purpose of shipping yarn, with the Equipment to be returned to Lessee by Lessee's customer after delivery of yarn. Lessor shall have no responsibilities with respect to the installation, use or operation of the Equipment. 7. Location and Surrender of Equipment. The Equipment shall be purchased by Lessor and delivered directly from the manufacturer to Lessee's facilities at 1823 Boone Trial Road, Sanford, NC 27330 or such other location(s) as Lessee shall designate. Lessor acknowledges that the Equipment will not remain at such location(s) but may be used at any facilities owned by Lessee and will be used for shipment of yarn both domestically and internationally. Upon the expiration or earlier termination of this Lease, Lessee shall promptly return the Equipment to the Lessor in good repair and working order, ordinary wear and tear resulting from proper use excepted, by making the Equipment available for pick-up by Lessor at Lessee's facility in Sanford, North Carolina. Lessor shall then thereafter promptly arrange for the pick-up and removal of the Equipment at the expense of Lessor. TRII\749961v5