Agenda Package - 03-21-11 - Laserfiche WebLink

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p -9G EQUIPMENT LEASE THIS EQUIPMENT LEASE ( "Lease ") is made and entered as of the 16 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 In consideration of the representations and covenants herein contained, the parties agree as follows: 1. Lease of Equipment Lessor hereby rents and leases to Lessee, and Lessee hereby rents and leases from Lessor the equipment described below (the " Equipment "): 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. 2. Term. This Lease shall be for an initial term of five years, commencing March 16, 2011 and ending April 17, 2016. . 3. Rent. As rental for the Equipment, Lessee agrees to pay Lessor Thirteen Thousand Two Hundred Ninety and 69/100 Dollars (13,290.69) per month on the 16" 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. Except as set forth below in Section 6 (Risk of Loss), 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. Risk of Loss Lessor agrees that if any of the Equipment is lost or damaged (including lost or damaged in shipment to or from customers of Lessee), Lessee will report such loss or damage to Lessor_ Lessor agrees to replace any lost or damaged Equipment by purchasing and providing to Lessee new Equipment of the same make and manufacture (or such other make and manufacture as are agreed on by Lessor and Lessee) up to a maximum cost of Forty Seven Thousand Four Hundred Forty One Dollars ($47,441.00) during the tern of the Lease. For any loss or damage of Equipment in excess of the amounts set forth above, Lessor shall not be obligated to replace the Equipment (and there shall be no adjustment to the rent payments), and Lessee shall bear the entire risk of loss or damage to the Equipment from any cause whatsoever occurring during the lease term or the transportation of the Equipment to and from Lessee except for the risk allocated to Lessor under this paragraph.. No such loss or damage shall relieve Lessee's obligations hereunder. 7. 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 • nu 1 W499e1 vs