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HomeMy WebLinkAboutReso 1975-7687 RESOLUTION NO. 7687 RESOLUTION OF TiiE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING NEGOTIATED LEASES FOR VEHICLE'S IN SUPPORT OF CETA TITLE VI PERSONPdEL The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, the City Council of the City of Chula Vista has by prior resolution authorized the direct negotiation of leases for vehicles to be used by CETA personnel, and WHEREAS, such authorization waiving the requirement for formal bids was made following a finding by the City Council of the City of Chula Vista that to do otherwise would unjustifiably delay the utilization of CETA personnel and thus waste public funds, and WHEREAS, the Department of Labor, through their Grant Officer, has authorized the sole purchase in excess of $5,000 with- out formal bids. NOb9, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the lease, attached hereto as Exhibit "A" and incorporated herein by reference as if set forth in full, and that the conditions enumerated above justify the waiver of formal bidding procedure. Presented by i ~4illiam J. obens, Director of Public Works Approved as to form by George D,~=Lindberg, City Attorrr"~y ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this 25th day of March ~ 1975 by the following vote, to-wit: AYES : Counci Zmen NAYE S : Counei Zmen ABSENT: CcunciZmen Hyde, Egdahl, Scott, Hobel, Hamilton None None Mayor of the City of Chula Vista ATTEST !~ .f City Clerk ~,= `"~ STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, City Clerk of the City of Chula Vista, California, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of and that the same has not been amended or repealed. DATED (SEAL) City CZer CC-660 -- -.- ~ ~~- .~ ~~ ~ _ VEHICLE LEASE AGREEMENT Lease Number.- . ~~% 3~ This Lease Agreement entered into and executed this f; ~ ~ day of '. -`-_ '~ ,19 ~7 ~ by and between ~ s ~ ;.~ , ~ ,organized and operating under the Isws ,. ... ,. j r of___ - whose principal address is ~:. ~~~ r,lz~ ~ ~'= .1~i~~'*I v~~-~~ is~~ ~~~~~ ~ ~~~-'~ hereinafter called "LESSOR" and `' ~ ` ~` * ~'• ° ~' . ` ' hereinafter caged "LESSEE" whose address l , ~ r y Q i ~ ti ' L.a ~ ~ ?~ ~ w a:P. THE PARTIES HEREBY MUTUALLY AGREE AS FOLLOWS: 1. DESCRIPTION OF LEASED VEHICLE: LESSOR hereby leases to LESSEE and LESSEE hereby hires from LESSOR, under the terms and conditions herein provided, the Vehicle hereinafter described: MODEL YR MAKE-TRADE NAME MODEL BODY STYLE COLOR VEHICLE SERIAL NUMBER [ I Engine [~ 'Auto Transmission [ ~ Power Steering [) Power Brakes [ ]Power Windows [ ]Power Seats jj `;6 ADDITIONAL EQUIPMENT . [ ]Air Conditioning Other ~" [ ]Tinted Glass [ ]Radio ~ ~~ ~: . ~;.~'L l;~w <. v [ ]Vinyl Roof i'. ,~, ~~; :. _:; l.C [ ]Door Locks (( . MONTHLY RENTAL First Month Pro Rata Rental ~ `= ,Fixed Monthly Rental _ ("~ ~ ~ -% =' Sales Tax ~ + ~~; Insurance ;`_iu=~ DATT VEHICLB DELIVERED ON: ~ ~~ ~ ~~' ]• ~ ~. ~ ~ 7 -1 Rental `i ~`= t i `_ - -'~ Total Monthl TYPE OF LEASE (Check One) [ ]OPEN-END CLOSED-END y License Fees Billed Sepazately Annually The motor vehicle leased here- The amount of insurance if TO BE COMPLETED IF OPEN-END LEASE Provided through or procurred -under is to be used primarily for (a) personal or family purposes? by lessor. '~a ,' ~~ Public Liability & Lease 1. ORIGINAL VALUE --~,w ' . (b) Bu ess or Propert}c,I)amage 2. Monthly Credit against Original Value. ~ 1 R T e commercial urposes? ~a<~ :.: P ental for the 3. Total amount of Fixed Monthly e Monthly C= Lease inal Value st Ori i th l t t be dit d b, G4 c'1 (c) Botha . g aga n mon ease erm o cre e COLLISjQN 4. Total amount of Pro Rata and Fixed Monthly Rental for the Monthly:~s:.+7.ai:. Lea S' ed se Comp.Fite&Theft Tease tennnot to be credited against original value. -~ , Tee ' ~ essee Monthly S. MAXIMUM MOUNT OF LIABILITY of the lessee at the end ~~-~ ~~ . ` Lease ; TOTAL 3 _, , .. ). of the month lease term. (Item 1 less Item ' ~ Term Monthl :k~;t.: 2. SECURITY DEPOSIT: LESSEE agrees to deposit with LESSOR, without restriction, the sum of Sr-~I _.~~Y.... as secunty for the full pper- formance of this lease. It shall be refunded on termination of this lease, provided LESSEE has fulfilled comp ere y a t e teens, conditions and obligatiors of the lease, including the payments of any money still owing LESSOR. 3. TERM: The lease term shall be [ ~ ]months (can be extended by the number of days covered by a pro-rata rental payment for a partial month), commencing on the date when the Vehicle, leased hereunder, is delivered and accepted by LESSEE; provided however that under no circumstances shall the obligations of the LESSEE hereunder cease before date that such Vehicle is surrendered to LESSOR and the settlement of account is accepted by LESSOR. 4. RENT: Commencing on :~~ i'3 r° ~ ~ 1 19 7 ~ .LESSEE shall pay to LESSOR at LESSOR'S option and ind'c. ~ sled in Monthly 6Lei-tal Section, the First Months Pro-Rata en o e otal'xlonti'ily Rental m advance, and theTotal Monthly Rental on or before the '"' day of each calendar month during the term hereof. No portion of First Mor~ th Pxo-Rata Rental is to be construed as monthly credit. LESSEE shall p$y LESSOR an additional sum of ~2~.cents per mile for each mile the Vehicle is driven in excess of 3~, -~l l'WI miles during the team hereof. Such additional rent shallbe due and payable on demand at the.option of LESSOR. LESSEE on demand of the LESSOR shall pay a late payment charge of ~» per month on each installment of rent or other amount due and sot paid withir- ten X10) days of the date such amount is due. S. NO ABATEMENT OR SET-0FF: LESSEE agrees that the sums payable to LESSOR shall not be subject to any abatement whatsoever, nor subject to any defense, set-off, counterclaim, or recoupment by reason of any damage to or loss or destruction of said Vehicle, or any of the equipment thereon, or by reason of any interruption from any cause whatsoever in the use, possession, or operation of said Vehicle or of the equipment thereon. 6. DELIVERY AND LOSS OF USE: The LESSOR shall not be liable to LESSEE for any failure or delay in obtaining the Vehicle or making delivery themof, In no event shall the LESSOR be liable for any loss of business or for any loss or damage whatsoever, attributable in any way to the loss of use of said Vehicle. 7. LICENSES, TAXES, FEES, AND EXPENSES: In addition to fixed rentals, sales tax, initial and subsequent Vehicle license and registration fees, LESSEE agrees to pay all costs, expenses, fees, a;id chazges in connection with the use and operation of the Vehicle during the Term of this Lease as well as any and all increased or added sales taxes, personal property and other ad valorem taxes and assessments and/or other governmental charges whatsoever, on the said . Vehicle or on the use, ownership, possession, ra'ntal, transportation, delivery or operation of same. LESSEE agrees to reimburse LESSOR, upon demand, for the full costs, expenses, taxes, fees, and other charges paid by LESSOR which LESSEE is obligated to pay. ' 8. INSURANCE: LESSEE shall provide at its own expense and maintain in full force and effect during the Term of this Lease a policy or policies of insurance, wntten by a company acceptable to LESSOR by the terms of which LESSOR and LESSEE together and severally, aze named as the insured and protected against ,Iiabili and/or loss arising out of the condition, maintenance, use or opera f hide ,herein leased in amounts of not less than s a, .fin respect to bodily injury or death to any one person; S * `~~' with respect to any one accident; I: "~•~ with respect to property damage; Uninsured Motorist coverage; $ ~ deductible collision; and s deductible comprehensive insurance (including fue and theft) end LESSOR'S nominee shall be named as Loss Payee on both the eoltision and comprehensive insurance. Such policy or policies shall provide, at least, ten (10) days advance notice to LESSOR, in writing, ar cancellation, change, or modific;lion in any terms, conditions, or amounts of coverage provided therein. LESSOR shall be provided with a certificate or other satisfactory evidencaof such insurance on or before LESSEE takes delivery of Vehicle covered herein. LESSEE shall be considered in default should he fail to provide, maintain or pay for the insurance as required hereunder. However, the LESSOR may at its opption purchase insurance covering its interest. at the expense of the LESSEE. The LESSEE agrees to reimburse the LESSOR for the cost. In the event the LESSOR should furnish the insurance required hereunder, as part of the lease azrangement, the LESSEE agrees to pay to the LESSOR an additional sum over and above the Fixed Rental for the insurance provided. The LESSEE also agrees to pay on demand any increases should they occur, in premium rates as additional rental ' 9. USE OF VEHICLE BY LESSEE: LESSEE agrees that during the Term hereof he will use or permit iJ~ e V cle ONLY for lawful purposes by properly licensed drivers and that the Vehicle shall not be driven or transported outside the State of ~+~~~~~ without the written consent of the LESSOR except a trip requiring fourteen (14) days or less, restricted to Continental U,S. and Canada. -n no event shall he use or permit the Vehicle to be used, except as may be expressly authorized by the LESSOR in writing, (a) for the transportation for hire of goods or passengers; (b) for hauling any type of house trailer or camper or for pushing or towing any other type of Vehicle; (c) to teach automobile driving; or (d} for the transportation of merchandise and freight. (Continued on reverse side). NO SOLICIITNG AGENT OR EMPLOYEE OF LESSOR SHALL HAVE THE POWER TO' WAIVE ANY OF THE TERMS OR PROVISIONS HEREOF, OR TO INCUR ADDITIONAL OBLIGATIONS ON BEHALF OF LESSOR UNLESS SUCH WAIVER OR ADDITIONAL OBLIGATIONS ARE EVIDENCED BY AN AGREEMENT IN WRITING SIGNED BY A DULY AUTHORIZED OFFICER OF LESSOR AND BY THE LESSEE. IN WITNESS WHEREOF, the parties hereto have executed this Motor Vehicle Lease Agreement on the clay and yeaz First written above. ~~~~ ~ Qp NOTICE TO THE LESSEE: ~ ~ ~~ ~~ ~~ ~ . ~~, ~ ~~y 1 DO NOT SIGN THIS AGREEMENT BEFORE YOU READ IT ~It IF IT CONTAINS ANY BLANK SPACES TO BE FILLED IN. (2) YOU ARE ENTITLED TO A COMPLETELY FILLED-IN COPY :.~ i ta, ~ ~; r ; ai. l ur:~ to W'>u~c~ ~ ~s ~. . OF THIS AGREEMENT. I+UY.t.~ All'Tt) ~ G~2Y C)F C~kIL~ ~J"T:~T'~ LESSOR LESSEE ..r t ~~ By ~~ TITLE B ~ TITLE Telephone: Business Home LESSEE'S SIGNATURE INDICATES HE HAS READ THE ENTIRE AGREEMENT INCLUDING THE TERMS AND CONDITIONS ON THE REVERSE SIDE AND HAS RECEIVED AFILLED-IN COPY OF THIS LEASE AGREEMENT. Rev. 6/ 74 This form may not be reproduced or copied in any manner or way whatsoever. All rights reserved by Lease Systems, Inc. P.O. Box 4241 Covina, Calif. 91723 LS-6 LESSEE agrees to indemnify and hold LESSOR hazmless from any fines, forfeitures, or penalties for violation of any laws by one, other than LESSOR, during the Tetm hereof, LESSEE shall be liable to LESSOR for the loss of the Vehicle caused by the confiscation thereof by any public authority by reason of illegal use thereof by LESSEE or anyone using the VEHICLE with his knowledge, consent, or approval. 10. ASSIGNMENT AND SUBLEASING: LESSEE agrees that he will not assign, transfer, sublet, or in any way lease its rights hereunder and will not pledge, lien, cause to be liened, mortgage, or hypothecate, or otherwise encumber the Vehicle herein leased. 11. MAINTENANCE AND REPAIRS: LESSEE agrees to keep and maintain the Vehicle in good working order, condition, and repair, properly serviced and lubricated The LESSEE also agrees to conform to the conditions as may be required to maintain the Manufacturer's Warranty. LESSEE further agrees not to abuse or misuse the Vehicle and to return it to the LESSOR at the expiration of the Term in as good condition as when delivered to LESSEE, reasonable weaz and teaz excepted. LESSEE further agrees that, (a) LESSEE, at his own expense, shall supply all gasoline, oil, lubrication, washing, polishing, pazking, and storage; (b) All repairs, fire and tube replacements, adjustments, towing and servicing of or to the Vehicle shall be made by and at the sole cost and expense of LESSEE (whether or not such repairs aze caused by casualty and whether insured or not) except such repairs, replacements, adjustments and servicing as may be covered and paid for within the terms of the Manufacturer's Warranty on said Vehicle. LESSEE agrees to permit the LESSOR to inspect the Vehicle as it may desire, and agrees to surrender or make available the Vehicle at such place or places as the LESSOR may designate for this purpose. 12. ALTERATIONS: LESSEE further agrees that said leased vehicle will not be mazked, altered or additional equipment installed without fast obtaining written consent of LESSOR. If said Vehicle is marked, altered or additional equipment is installed thereon, the LESSEE will bear the expense of restoring said Vehicle to its original condition. 13. DAMAGE, DESTRUCTION, OR THEFT OF VEHICLE: LESSEE assumes the entire risk of loss or damage to the Vehicle from any cause whatsoever and the obligation of the LESSEE to pay the rentals herein provided shall not in any manner be affected and shall remain in full force and effect irrespective of any damage, loss, or destruction of the Vehicle and LESSOR shall be in no way liable for, and LESSEE shall hold LESSOR harmless against any damage, loss, theft, or destruction of the Vehicle leased herein, and of the cazgo or contents thereof, during the term hereof. l4. NOTIFICATION: LESSEE agrees to notify LESSOR, in writing, within twenty-four (24) hours in the event the Vehicle is involved in an accident, damaged, is destroyed by fire, is stolen, or is damaged in any way, and to comply with all of the terms, covenants, and conditions contained in the policy or policies of insurance covering the Vehicle. 15. INDEMNITY: LESSOR shall not in any case or under any circumstances be liable or responsible for any damage or injuries to persons or property suffered or sustained in the use, condition, or operation of the Vehicle, or otherwise, in connection therewith, no matter how caused or occasioned, nor from any breach of warranty (it being understood that LESSOR makes no warranties, either expressed or implied, as to the condition of the Vehicle or its fitness for any particular purpose) or from-any other causes whatsoever, and all such claims aze specifically waived by LESSEE. LESSEE agrees to and does hereby indemnify LESSOR and hold LESSOR, its agents and employees, free and hazmless of and from any and all losses, costs, demands or liability of any kind or nature whatsoever, including legal costs and attorney's fees, arising from the use, condition (including without limitation, latent and other defects, whether or not discoverable by LESSOR) or operation of the Vehicle, and by whomsoever used or operated during the Term hereof. Upon demand LESSEE shall defend, at LESSEE'S own expense, any and all claims brought against LESSOR in connection herewith. The termination of this Lease or taking of possession or redelivery of the Vehicle shall not terminate the liability of LESSEE under this provision as to events occurring prior to such termination, taking of possession or redelivery. It is understood and agreed however, that LESSOR shall give LESSEE prompt notice of any claim or liability hereby indemnified against, and that LESSEE shall be entitled to control the defense thereof, provided that LESSOR, at its option, may pazticipate in said defense. 16. TERMINATION: Unon the expiration or termination of the herein stated Term of this Lease and upon the return of Vehicle to LESSOR, LESSOR shall sell the Vehicle, which sale may be made at the best wholesale bid and LESSOR shall have no obligation whatsoever to sell os attempt to sell the Vehicle at retail The rigghhts of LESSOR and of LESSEE, upon termination and sale of Vehicle aze as follows: FOR O1rEN-END LEASE-If the NET amount received from sale of Vehicle exceeds the maximum liability herein listed, LESSOR shall pay such excess to LESSEE as reduction in rental. If the NET amount received from such sale is less than the maximum liability, the total amount of such deficiency shall be paid by LESSEE to LESSOR promptly after demand thereof. The "NET amount" as herein used shall be defined as the sales price of the Vehicle less 2'/z percent which percentage is to cover LESSOR'S costs incurred in connection with the sale. Nothing contained in jhis Lease shall be deemed to give LESSEE any rights in the Vehicle, except as a LESSEE, or to give LESSEE at any time any option or other right to purchase or acquire the Vehicle. LESSEE upon LESSOR'S permission may terminate this Lease after the first twelve (12) months provided LESSEE is not in default with respect to any of the terms, conditions and covenants herein and after thirty (30) days written notice to LESSOR. Such termination shall not relieve LESSEE of any obligation herein except and until LESSEE surrenders the Vehicle to LESSOR and pays LESSOR any rental accrued to date of surrender PLUS the difference between the NET amount of sale and the Original Value less the total accrued monthly credits calculated to the date of surrender. FOR CLOSED-END LEASE-Upon exppiration or termination of the herein stated Tetm of this Lease and the surrender or return of Vehicle to LESSOR in the same condition as when first delivered to LESSEE less reasonable weaz and teaz which may be defined in an addenda attached hereto and provided all terms, conditions, and covenants of this Lease have been accomplished by LESSEE, then LESSEE shall have no further obligations to LESSOR and LESSOR shall have no obligations to LESSEE except as provided for in section 15 above. 17. DEFAULT: The failure by the LESSEE to perform any of the obligations hereunder and/or any one or more of the following events shall constitute a breach of this Lease by LESSEE; (a) the failure to make any rental or other payment required hereunder within three (3) days after notice (written or oral) from LESSOR that the same is due and unpaid; (b) the making by LESSEE of any false representation in connection with the credit application or with this Lease; (c) if LESSEE becomes insolvent, or commits an act of bankruptcy, or makes any azrangement with or assignment for the benefit of creditors, or if a proceeding in bankruptcy, insolvency, reorganization, or receivership is instituted by or against LESSEE or his property, or if any writ of attachment or execution or other process is levied or lien created aggainst, or a receiver or trustee is appointed for any property of LESSEE and the same is not released, bonded or dischazaed within ten (10) days thereafter; (d) if LESSOR for any reason deems the Vehicle is subject to misuse or danger; and (e) the failure by LESSEE to advise LESSOR of the location of the Vehicle is so requested by LESSUR; (fj if LESSOR for any reason deems itself insecure. In the event of any such default, LESSOR shall be entitled to any and all remedies allowed by law including but not limited to any one or more of the following: (1) LESSOR shall have the immediate right to possession of the Vehicle and, without prior demand and with or without legal process, LESSOR shall have the right to take possession of the Vehicle, together with all attachments, equipment, accessories, or other personal property therein or attached thereto, wherever the Vehicle may be found (including the premises of the LESSEE), using all reasonable means to do so and without liability to any one for damages by reason thereof; (2) to hold the Vehicie and to maintain this Lease in effect, charging LESSEE with all rentals and other payments due hereunder as and when the same may fall due; or (3)to terminate this Lease and to sell the Vehicle to any person, on any terms, and at any amount. Taking of possession from the LESSEE by the LESSOR, as aforesaid, and any sale made by LESSOR of such Vehicle shall not affect the right of LESSOR to recover from LESSEE any and all damages which LESSOR shall have sustai:ed by reason of the breach of LESSEE of any of the covenants, terms, or conditions of this Lease. The remedies herein provided for the LESSOR upon default of LESSEE shall not be deemed to be exclusive, but shall be cumulative and in addition to all other remedies in its favor existing in law, equity, or bankruptcy. 18. DISPOSAL OF VEHICLE DUE TO LESSEE'S DEFAULT: In the event the Vehicle leased herein is terminated due to LESSEE'S default, LESSOR shall have the right to terminate, take possession and then sell the Vehicle to any person, on any terms, at any amount and in the event of any such sale LESSEE shall pay to LESSOR an amount or amounts as set forth: OPEN-END LEASE: An amount equal to the difference between the net amount received by LESSOR from such sale and the Original Value less the total accrued monthly credits for the months rental has been paid plus $150.00 penalty and the total monthly rentals in arrears if any, in addition to any damages or remedies herein provided. CLOSED-END LEASE: An amount equal to the total unpaid monthly rentals for the remaining months of the Term of this lease or an amount equal to the difference received by LESSOR from such sale and the Leasing Company Acquisition Cost less two per cent (2%) per month for the number of months rental was paid,whichever is greatest. Leasing Company Acquisition cost is defined as the original cost of the vehicle to LESSOR. Nothing in this Section shall alter any rights, privileges, or claims that LESSOR may have. 19. ATTORNEY'S FEES AND LEGAL COSTS: In the event LESSEE shall default hereunder, LESSOR shall be entitled to recover from LESSEE, in addition to all other items of damages, all costs and expenses, including court costs and reasonable attorney's fees by LESSOR to enforce its rights hereunder. 20. TITLE: ASSIGNMENT: Title to the Vehicle shall at all times remain in the LESSOR or its nominees, successors, or assigns. All licenses and title certificates for the Vehicle shall be registered in the name of the LESSOR or its nominee. LESSOR may at any time, assign this Lease, including its interest in any monies due hereunder. LESSEE agrees that this Lease, at all times, shall be subject and subordinate to any security agreement now existing or hereafter executed by lessor affecting the Vehicle and that such security agreement and any security interest created thereunder shall be a prior and superior lien to this Lease on said Vehicle. In this connection LESSEE warrants that it will assert no counterclaims, off-sets, or defenses against rent due hereunder. 21. SEVERABILITY: WAIVER: Any provisions of this Lease which shall prove to be invalid, void or illegal will in no way affect, impair or invalidate any other provision hereof and such remaining provisions shall remain in full force and effect. Any waiver, indulgence, delay or omission to exercise any right, power or remedy accruing to LESSOR upon any breach or default of LESSEE under this Lease shall not impair any such right, power, or remedy of LESSOR, nor shall it be construed as a waiver of any such breach or default, or of any similaz breach or default thereafter occurring; nor shall any waiver of a single breach or default be deemed a waiver of any subsequent breach or default. All waivers under this Lease must be in wiitin All remedies, either under this Lease or by law afforded to LESSOR shall be cumulative. 22. AUTHORI~ TO SIGN: JOINT AND SEVERAL LIABILITY: If LF,SSEE is a corporation or a paztnership, the person signing this Lease on behalf of such corporation or partnership hereby warrants that he has full authority from such corporation or paztnership to sign this Lease and obligate the corporation or partnership hereunder. Said person and the corporation or paztnership shall be jointly and severally liable for all rent and any and all other accounts that may be due and owing to LESSOR under the terms of this Lease, including attorney's fees and costs. 23. MISCELLANEOUS: (a) Time is of the essetice of this Lease. (b) NOTICE: Notices, requests, and other communications hereunder shall be sent in writing and may be delivered personallyy or sent by first class mail to the addresses set forth at the outset of this Lease or as may be designated by LESSOR. (c) GOVERNING LAW: This Lease shall be governed and interpreted under the laws of the State the Vehicle is teased in. (d) GENDER: Whenever the context of this Lease requires, the masculine gender includes the feminine or neuter; the singular includes the plural; and whenever the word "LESSOR" is used herein, it shall include all assigns of LESSOR. (e) PARAGRAPH: The pazagraph headings used herein are merely descriptive and form no part of the Lease between the patties and aze in no way intended to alter the Lease contained herein. (f) ENTIRE AGREEMENT: The parties hereto have read this enYve Lease and the credit application made in conjunction herewith and do hereby acknowledge that they are familiar with all of the terms, covenants, and conditions set forth therein and that there are no other representations, warranties, or agreements concerning this Lease which do not appear in writing therein. There shall be no alteration, change, or modification of any of the terms, covenants, and conditions of the Lease except in writing and signed by all parties hereto. ~~~~ VEHICLE LEASE AGREEMENT LeaseNumber_ ~ 73i This Lease Agreement entered into and executed this ',[. ~ ~ day of `~" ,, ,19 t "" by and between ' ` ` ; ° _ ,organized and operating under the laws ~,, ,. .,:, ~v : '~, k;~a ~ . of___ whose principal address is ~ ~ -? ~£ hereinafter called "LESSOR" and hereinafter called. "LESSEE" whose address THE PARTIES HEREBY MUTUALLY AGREE AS FOLLOWS: 1. DESCRIPTION OF LEASED VEHICLE: LESSOR hereby leases to LESSEE and LESSEE hereby hires from LESSOR, under the terms and conditions herein provided, the Vehicle hereinafter described: MODEL YR. MAKE-TRADE NAME MODEL BODY STYLE COLOR VEHICLE SERIAL NUMBER ~. ADDITIONAL EQUIPMENT (;;~ Engine _ ,: [ j Air Conditioning Other [ ]Auto Transmission [ ]Tinted Glass [~.~ Power Steering [ ]Radio •~ ~ (;n:- . ~~''3„~ ~ 'i d ~ Power Brakes ~; ~ [ ]Vinyl Roof `~ :$ ~ . ,~ ~~ .~., [ ]Power Windows [ ]Door Locks .t ' , [• ] `Power Seats ~~ "- ~ ~ _~ ~.`, ! s _ t3:"= MONTHLY RENTAL First Month Pro Rata Rental }~. a ' `' Fixed Monthly Rental Sales Tax s , _ Insurance E''~ ;x,r.i DATE VEHICLE DELIVERED ON: ' TYKE OF LEASE (Check One) [ ]OPEN-END [ CLOSED-END Total Monthly Rental ~ Ca7 ~. ~ ~' : License Fees Billed Sepazately Annually The motor vehicle leased hors- The amount of insurance if TO BE COMPLETED IF OPEN-END LEASE Provided through or procurred under is to be used primarily for (a) personal or family purposes? by lessor. Public Liability 8c Lease 1. ORIGINAL VALUE ;~ ° r=t, w-+ - (b) Business or ~ Property ~ age 2. Monthly Credit against Original Values ~' Term fi C) Monthl 3 T l commercial purposes. ~ y . ota amount of Fixed Monthly Rental for the Lease (c) Both a and b. COLLISI month lease term to be credited against Original Value. Monthly ~~'~I3C Te~i~ti~fi~ 4. oral amount of Pro Rata and Fixed Monthly Rental for the Signs ~ Comp.Fir@¢cTheftLe~ ~ _i ~ ~ lease term not to be credited Monthly f ti ~T3k' TPA ~ against original value. ' TOTAL Lease 5. MAXIMUM MOUNT OF LIABILITY of the lessee at the end ~~ ~~ Monthl ~Q11L'; Term of the month lease term. (Item 1 less Item 3). 2. SECURITY DEPOSIT: LESSEE agrees to depdsit with LESSOR, without restriction, the sum of $ "' 4s°lk~ as secunty lot the full per- formance of this lease. It shall be refunded on termination of this lease, provided LESSEE has fulfilled comp ere y a to teens, conditions and obligations of the lease, including the payments of any money still owing LESSOR. . 3. TERM: The lease teen shall be [ ~ ]months (can be extended by the number of days covered by a pro-rata rental payment for a partial month), commencing on the date when the Vehicle, leased hereunder, is delivered and accepted by LESSEE; provided however that under no circumstances shall the obligations of the LESSEE hereunder cease before date that such Vehicle is surrendered to LESSOR and the settlement of account is accepted by LESSOR. 4. RENT: Cotnmencing on `'~t~19,LESSEE shall pay to LESSOR at LESSOR'S option and indicated in Monthly Rental Section, the First Months Yro-Ra~ental o t ~e o o ly Ren alm advance, and theTotalMonthly Rental on or before the ~ ~: ;- day of each calendar month during the term hereof. No portion of Firs nth Pro-Rata Rental is to be construed as monthly credit. LESSEE shall pay LESSOR an additional sum of cents per mile for each mik the Vehicle is driven in excess of s a)~~t.'~ miles during the term hereof. Such additional rent shallbe due and payable on demand at tip option of LESSOR. LESSEE on demand of the LESSOR shall pay a late payment charge of ~ s:+ per month on each installment of rent or other amount due and sot paid within ten (10) days of the date such amount is due. 5. NO ABATEMENT OR SET-0FF: LESSEE agrees that the sums payable to LESSOR shall not be subject to any abatement whatsoever, nor subject to any defense, set-off, counterclaim, or recoupment by reason of any damage to or loss or destruction of said Vehicle, or any; of the equipment thereon, or by reason of any interruption from any cause whatsoever in the use, possession, or operation of said Vehicle or of the equipment thereon. 6. DELIVERY AND LOSS OF USE: The LESSOR shall not be Gable to LESSEE for any failure or delay in obtaining the Vehicle or making delivery thereof. In no event shall the LESSOR be liable for any loss of business or for any loss or damage whatsoever, attributable in any way to the loss of use of said Vehicle. 7. LICENSES, TAXES, FEES, AND EXPENSES: In addition to fixed rentals, sales tax, initial and subsequent Vehicle license and registration fees, LESSEE agrees to pay all costs, expenses, fees, and chazges in connection with the use and operation of the Vehicle during the Term of this Lease as weG as any and sB increased of added sales taxes, personal property and other ad valorem taxes and assessments and/or other governmental chazges whatsoever, on the said Vehicle or on the use, ownership, possession, rental, transportation, delivery or operation of same. obligatedEtoEp Yagrees to reimburse LESSOR, upon demand, for the fuG costs, expenses, taxes, fees, and other charges paid by LESSOR which LESSEE is 8. INSURANCE: LESSEE shall provide at its own expense and maintain in full force and effect during the Term of this Lease a policy or policies of insurance, wntten by a company acceptable to LESSOR by the terms of which LESSOR and LESSEE together and severally, aze named as the insured and protectgd agavtst lita]bili ,and/or loss arising out of the condition, maintenance, use or operat~o f ~~ ehiCi herein leased in amounts of not less than iZ respect to bodily injury or death to any one person; 5 ~ '< _with respect to any one accident; with respect to property damage; Uninsured Motorist covera¢e: $ ~ 1 deductible collision; and S ' -~ ~ deductible comprehensive insurance (including fae and-theft) snd LESSOR'S nominee shall be named as Loss Payee on both the collision and comprehensive insurance. Such policy or policies shat provide, at least, ten (10) days advance notice to LESSOR, in writing, or cancellation, change, or modit3cation,itt any terms, conditions, or amounts of coverage provided therein. LESSOR shat be provided with a certificate or other satisfactory evidoncuof such insurance on or before LESSEE takes delivery of Vehicle covered herein. LESSEE shall be considered in default should he fail to provide, maintain or pay for the insurance as required hereunder. However, the LESSOR may at its opption purchase insurance covering its interest at the expense of the LESSEE. The LESSEE agrees to reimburse the LESSOR for the cost. In the event the LESSOR should famish the insurance required hereunder, as part of the lease arangement, the LESSEE agrees to pay to the LESSOR an additional sum over and above the Fixed Rental for the insurance provided. The LESSEE also agrees to pay on demand any increases should they occur, in premium rates as additional rental 9. USE OF VEHICLE BY LESSEE: LESSEE agrees that during the Term hereof he will use or permit the use,gf the Vehicle ONLY for lawful purposes by properly licensed drivers and that the Vehicle shall not be driven or transported outside the State of 1 cam`? a ' r without the written consent of the LESSOR except a trip requiring fourteen (14) days or less, restricted to Continental U.S. and Canada. In no event shall he use or permit the Vehicle to be used, except as may be expressly authorized by the LESSOR in writing, (a) for the transportation for hire of goods or passengers; (b) for hauling any type of house trailer or camper or for pushing or towing any other type of Vehicle; (c) to teach automobile driving; or (d) for the transportation of merchandise and freight. (Continued on reverse side). NO SOLICITING AGENT OR EMPLOYEE OF LESSOR SHALL HAVE THE POWER TO WAIVE ANY OF THE TERMS OR PROVISIONS HEREOF, OR TO INCUR ADDITIONAL OBLIGATIONS ON BEHALF OF LESSOR UNLESS SUCH WAIVER OR ADDITIONAL OBLIGATIONS ARE EVIDENCED BY AN AGREEMENT IN WRITING SIGNED BY A DULY AUTHORIZED OFFICER OF LESSOR AND $Y THE LESSEE. IN WITNESS WHEREOF, the parties hereto have executed this Motor Vehicle Lease Agreement on the day and yeaz fast written above. . °~;.~ ~: ~;~ f }a, i;p},(,±~~,* ~~.; NOTICE TO THE LESSEE: .~~ ~ ;~`, J5 -,-'~`)~ ; ~~. (1) DO NOT SIGN THIS AGREEMENT BEFORE YOU READ IT OR IF IT CONTAINS ANY BLANK SPACES TO BE FILLED IN. O~ YOU ARE ENTITLED TO A COMPLETELY FILLED-IN COPY 1 '?;:~iu~"~~+ C32: failure tc3 g:,urc~'~a~~. THIS AGREEMENT. i`~.;~~<?:.z'°- ,..ir~.L.' ?.sl~.~.`...~~,' ~.~,.'~~'y .'M .s~~1rF_~t, ?f ,){~~'z LESSOR LESSEE ..- ' ~ ..- a; , ~ .:. - ; BY . .....l.r., _'.~. <trr~:.f .j TIT BY ~ ' TITLE Telephone: Business Home LESSEE'S SIGNATURE INDICATES HE HAS READ THE ENTIRE AGREEMENT INCLUDING THE TERMS AND CONDITIONS ON THE REVERSE SIDE AND HAS RECEIVED AFILLED-IN COPY OF THIS LEASE AGREEMENT. Rev. 6/ 74 This form may not be reproduced or copied in any manner or way whatsoever. All rights reserved by Lease Systems, Inc. P.O. Box 4241 Covina, Calif. 91723 LS-6 LESSEE agrees to indemnify and hold LESSOR harmless from any fines, forfeitures, or penalties for violation of any laws by one, other than LESSOR, during the Term hereof, LESSEE shall be liable to LESSOR for the loss of the Vehicle caused by the confiscation thereof by any public authority by reason of illegal use thereof by LESSEE or anyone using the VEHICLE with his knowledge, consent, or approval. 10. ASSIGNMENT AND SUBLEASING: LESSEE agrees that he will not assign, trahsfer, sublet, or in any way lease its rights hereunder and will not pledge, lien, cause to be liened, mortgage, or hypothecate, or otherwise encumber the Vehicle herein leased. 11. MAINTENANCE AND REPAIRS: LESSEE agrees to keep and maintain the Vehicle in good working order, condition, and repair, properly serviced and lubricated The LESSEE also agrees to conform to the conditions as may be required to maintain the Manufacturer's Warranty. LESSEE further agrees not to abuse or misuse the Vehicle and to return it to the LESSOR at the expiration of the Term in as good condition as when delivered to LESSEE, reasonable weaz and teaz excepted. LESSEE further agrees that, (a) LESSEE, at his own expense, shall supply all gasoline, oil, lubrication, washing, polishing, pazking, and storage; (b) All repairs, fire and tube replacements, adjustments, towing and servicing of or to the Vehicle shall be made by and at the sole cost and expense of LESSEE (whether or not such repairs are caused by casualty and whether insured or not) except such repairs, replacements, adjustments and servicing as may be covered and paid for within the terms of the Manufacturer's Warranty on said Vehicle. LESSEE a ees to permit the LESSOR to inspect the Vehicle as it may desire, and agrees to surrender or make available the Vehicle at such place or places as the LES~OR may designate for this purpose. 12. ALTERATIONS: LESSEE further agrees that said leased vehicle will not be mazked, altered or additional equipment installed without fast obtaining written consent of LESSOR. If said Vehicle is marked, altered or additional equipment is installed thereon, the LESSEE will bear the expense of restoring said Vehicle to its original condition. 13. DAMAGE, DESTRUCTION, OR THEFT OF VEHICLE: LESSEE assumes the entire risk of loss or damage to the Vehicle from any cause whatsoever and the obligation of the LESSEE to pay the rentals herein provided shall not in any manner be affected and shall remain in full force and effect irrespective of any damage, loss, or destruction of the Vehicle and LESSOR shall be in no way Gable for, and LESSEE shall hold LESSOR harmless against any damage, loss, theft, or destruction of the Vehicle leased herein, and of the cargo or contents thereof, during the term hereof. l4. NOTIFICATION: LESSEE agrees to notify LESSOR, in writing, within twenty-four (24) hours in the event the Vehicle is involved in an accident, damaged, is destroyed by fire, is stolen, or is damaged in any way, and to comply with all of the terms, covenants, and conditions contained in the policy or policies of insurance covering the Vehicle. 15. INDEMNITY: LESSOR shall not in any case or under any circumstances be liable or responsible for any damage or injuries to persons or property suffered or sustained in the use, condition, or operation of the Vehicle, or otherwise, in connection therewith, no matter how caused or occasioned, nor from any breach of warranty (it being understood that LESSOR makes no warranties, either expressed or implied, as to the condition of the Vehicle or its fitness for any particular purpose) or from any other causes whatsoever, and all such claims aze specifically waived by LESSEE. LESSEE agrees to and does hereby indemnify LESSOR and hold LESSOR, its agents and employees, free and harmless of and from any and all losses, costs, demands or liability of any kind or nature whatsoever, including legal costs and attorney's fees, arising from the use, condition (including without limitation, latent and other defects, whether or not'discoverable by LESSOR) or operation of the Vehicle, and by whomsoever used or operated during the Tenn hereof. Upon demand LESSEE shall defend, at LESSEE'S own expense, any and all claims brought against LESSOR in connection herewith. The termination of this Lease or taking of possession or redelivery of the Vehicle shall not terminate the liability of LESSEE under this provision as to events occurring prior to such termination, taking of possession or redelivery. It is understood and agreed however, that LESSOR shall give LESSEE prompt notice of any claim or liability hereby indemnified against, and that LESSEE shall be entitled to control the defense thereof, provided that LESSOR, at its option, may pazticipate in said defense. 16. TERMINATION: Upon the expiration or termination of the herein stated Term of this Lease and upon the return of Vehicle to LESSOR, LESSOR shall sell the Vehicle, which sale may be made at the best wholesale bid and LESSOR shall have no obligation whatsoever to sell or attempt to sell the Vehicle at retail The rights of LESSOR and of LESSEE, upon termination and sale of Vehicle aze as follows: FOR OPEN-END LEASE-If the NET amount received from sale of Vehicle exceeds the maximum Lability herein listed, LESSOR shall pay such excess to L)/SSEE as reduction in rental. If the NET amount received from such sale is less than the maximum Lability, the total amount of such deficiency shall be paid by LESSEE to LESSOR promptly after demand thereof. The "NET amount" as herein used shall be defined as the sales price of the Vehicle less 2'/i percent which percentage is to cover LESSOR'S costs incurred in connection with the sale. Nothing contained in this Lease shall be deemed to give LESSEE any rights in the Vehicle, except as a LESSEE, or to give LESSEE at any time any option or other right to purchase or acquire the Vehicle. LESSEE upon LESSOR'S permission may terminate this Lease after the fast twelve (12) months provided LESSEE is not in default with respect to any of the terms, conditions and covenants herein and after thirty (30) days written notice to LESSOR. Such termination shall not relieve LESSEE of any obligation herein except and until LESSEE sun enders the Vehicle to LESSOR and pays LESSOR any rental accrued to date of surrender PLUS the difference between the NETamount of sale and the Original Value less the total accrued monthly credits calculated to the date of surrender. FOR CLOSED-END LEASE-Upon expcation or termination of the herein stated Term of this Lease and the surrender or return of Vehicle to LESSOR in the same condition as when first delivered to LESSEE less reasonable weaz and teaz which may be defined in an addenda attached hereto and provided all terms, conditions, and covenants of this Lease have been accomplished by LESSEE, then LESSEE shall have no further obligations to LESSOR and LESSOR shall have no obligations to LESSEE except as provided for in section 15 above. 17. DEFAULT: The failure by the LESSEE to perform say of the obligations hereunder and~or any one or more of the following events shat constitute a breach of this Lease by LESSEE; (a) the failure to make any rental or other payment required hereunder within three (3) days after notice (written or oral) from LESSOR that the same is due and unpaid; (b) the making by LESSEE of any false representation in connection with the credit application or with this Lease; (c) if LESSEE becomes insolvent, or commits an act of bankruptcy, or makes any arrangement with or assignment for the benefit of creditors, or if a proceeding in bankruptcy, insolvency, reorganization, or receivership is instituted by or against LESSEE or his property, or if any writ of attachment or execution or other process is levied or lien created against, or a receiver or trustee is appointed for any property of LESSEE and the same is not released, bonded or discharged within ten (10) days thereafter; (d) if LESSOR for any reason deems the Vehicle is subject to misuse or danger; and (e) the failure by LESSEE to advise LESSOR of the location of the Vehicle is so requested by LESSUR; (f) if LESSOR for any reason deems itself insecure. In the event of any such default, LESSOR shall be entitled to any and all remedies allowed by law including but not limited to any one or more of the following: (1) LESSOR shall have the immediate right to possession of the Vehicle and, without prior demand and with or without legal process, LESSOR shall have the right to take possession of the Vehicle, together with all attachments, equipment, accessories, or other personal property therein or attached thereto, wherever the Vehicle may be found (including the premises of the LESSEE), using all reasonable means to do so and without liability to any one for damages by reason thereof; (2) to hold the Vehicle and to maintain this Lease in effect, charging LESSEE with all rentals and other payments due hereunder as and when the same may fall due; or (3)to terminate this Lease and to sell the Vehicle to any person, on any terms, and at any amount. Taking of possession from the LESSEE by the LESSOR, as aforesaid, and any sale made by LESSOR of such Vehicle shall not affect the right of LESSOR to recover from LESSEE any and all damages which LESSOR shat have sustai:~ed by reason of the breach of LESSEE of any of the covenants, terms, or conditions of this Lease. The remedies herein provided for the LESSOR upon default of LESSEE shall not be deemed to be exclusive, but shall be cumulative and in addition to all other remedies in its favor existing in law, equity, or bankruptcy. 18. DISPOSAL OF VEHICLE DUE TO LESSEE'S DEFAULT: In the event the Vehicle leased herein is terminated due to LESSEE'S default, LESSOR shall have the right to terminate, take possession and then sell the Vehicle to any person, on any terms, at any amount and in the event of any such sale LESSEE shall pay to LESSOR an amount or amounts as set forth: OPEN-END LEASE: An amount equal to the difference between the net amount received by LESSOR from such sale and the Original Value less the total accrued monthly credits for the months rental has been paid plus $150.00 penalty and the total monthly rentals in arrears if any, in addition to any damage~c or remedies herein provided. CLOSED-END LEASE: An amount equal to the total unpaid monthly rentals for the remaining months of the Term of this lease or an amount equal to the difference received by LESSOR from such sale and the Leasing Company Acquisition Cost less two per cent (2%) per month for the number of months rental was paid,whichever is greatest. Leasing Company Acquisition cost is defined as the original cost of the vehicle to LESSOR. Nothing in this Section shall alter any rights, privileges, or claims that LESSOR may have. 19. ATTORNEY'S FEES AND LEGAL COSTS: In the event LESSEE shall default hereunder, LESSOR shat be entitled to recover from LESSEE, in addition to all other items of damages, all costs and expenses, including court costs and reasonable attorney's fees by LESSOR to enforce its rights hereunder. 20. TITLE: ASSIGNMENT: Title to the Vehicle shall at all times remain in the LESSOR or its nominees, successors, or assigns. All licenses and title certificates for the Vehicle shall be registered in the name of the LESSOR or its nominee. LESSOR may at any time, assign this Lease, including its interest in any monies due hereunder. LESSEE agrees that this Lease, at all times, shall be subject and subordinate to any security agreement now existing or hereafter executed by lessor affecting the Vehicle and that such security agreement and any security interest created thereunder shall be a prior and superior lien to this Lease on said Vehicle. In this connection LESSEE warrants that it will assert no counterclaims, off-sets, or defenses against rent due hereunder. 21. SEVERABILITY: WAIVER: Any provisions of this Lease which shall prove to be invalid, void or illegal will in no way affect, impair or invalidate any other provision hereof and such remaining provisions shall remain in full force and effect. Any waiver, indulgence, delay or omission to exercise any right, power or remedy accruing to LESSOR upon any breach or default of LESSEE under this Lease shall not impair any such right, power, or remedy of LESSOR, nor shat it be construed as a waiver of any such breach or default, or of any similaz breach or default thereafter occurring; nor shall any waiver of a single breach or default be deemed a waiver of any subsequent breach or default. All waivers under this Lease must be in writin All remedies, either under this Lease or by law afforded to LESSOR shall be cumulative. 22. AUTHORI~ TO SIGN: JOINT AND SEVERAL LIABILITY: If LESSEE is a corporation or a paztnership, the person signing this Lease on behalf of such corporation or partnership hereby warrants that he has full authority from such corporation or paztnership to srgn this Lease and obligate the corporation or paztnershtp hereunder. Said person and the corporation or partnership shall be lomtly and severally liable for all rent and any and all other accounts that may be due and owing to LESSOR under the terms of this Lease, including attorney's fees and costs. 23. MISCELLANEOUS: (a) Time is of the essence of this Lease. (b) NOTICE: Notices, requests, and other communications hereunder shall be sent in writing and may be delivered personally or sent by first class mail to the addresses set forth at the outset of this Lease or as may be designated by LESSOR. (c) GOVERNING LAW: This Lease shall be governed and interpreted under the laws of the State the Vehicle is leased in. (d) GENDER: Whenever the context of this Lease requires, the masculine gender includes the feminine or neuter; the singular includes the plural; and whenever the word "LESSOR" is used herein, it shall include all assigns of LESSOR. (e) PARAGRAPH: The paragraph. headings used herein aze merely descriptive and form no part of the Lease between the parties and are in no way intended to alter the Lease contained herein. (f) ENTIRE AGREEMENT: The pazties hereto have read this entire Lease and the credit application made in conjunction herewith and do hereby acknowledge that they aze familiar with all of the terms, covenants, and conditions set forth therein and that there aze no other representations, warranties, or agreements concerning this Lease which do not appeaz in writin& therein. There shall be no alteration, change, or mod cation of any of the terms, covenants, and conditions of the Lease except in writing and signed by all paztres hereto. ~G','~