0
0

Rental Policies

SONSRAY MACHINERY LLC TERMS AND CONDITIONS

 

 

 


 

INSURANCE. Lessee's Duty to Insure, For all property covered by this Lease, Lessee shall provide, at Lessee's own cost and expense, comprehensive, fire, theft, and additional combined insurance coverage for not less than the mar1


 

INSURANCE CERTIFICATE: Such policies shall name Sonsray Machinery LLC as an additional insured (including an additional insured endorsement) and loss payee, and provide for Sonsray Machinery LLC to receive at least 30 days prior written notice of any cancellation or material change. Customer shall provide Sonsray Machinery LLC with certificates of insurance evidencing the required policies prior to any rental and at any time upon Sonsray Machinery LLC's request. In the event that Customer does not have Insurance covering damage/loss to the Equipment, Sonsray Machinery LLC will insure this damage/loss risk for the Equipment at a charge of 15% of the rental amount, but Customer remains liable for any deductible. No property will be released to Lessor without the evidence of insurance or the acceptance of the loss damage.


 

Excess Liability Indemnity. Lessee will indemnify, defend and hold Lessor, its agents, and employees, harmless against all loss, liability, and expense, including reasonable attorneys' fees, in excess of the provided limits of liability insurance for bodily injury (including death) or property damage caused by or arising out of the ownership, maintenance, or use of the Leased Equipment. Lessee will further indemnify, defend, and hold harmless Lessor, its agents, and employees, from loss, liability, and expense, including reasonable attorneys' fees, because of Lessee's failure to comply with any provisions of any insurance policy insuring Lessor and Lessee, or because of Lessee's failure to comply with the provisions of this article.


 

 

Stipulated Loss Value. If any property is lost, stolen, destroyed, or damaged beyond repair, Lessee will pay Lessor in cash the Fair Mar1


 

LOSS AND DAMAGE WAIVER (LDW): LDW is not insurance. This contract otters a loss damage waiver to cover your responsibility for the loss, damage or destruction to the leased equipment. To the extent that such loss, damage or destruction results from your gross negligence or willful misconduct, any limitation of your responsibility provided by the loss damage waiver shall be void. The Lessor is responsible for the $1,000.00 deductible portion of any valid claim. Loss and Damage

 


 

PAYMENTS BY LESSEE. Lessee will make rental payments at Lessor's address as set forth above or at any other place that may be designated by Lessor. All rental payments are due and payable in advance on the ls! day of each month after the execution of this Lease during the term of this Lease. Any rental payment not made by Lessee within 30 days of its due date will be subject to a late charge of 18% per annum (1.5% per month) of the amount due.

LESSEE'S INSPECTION. Lessee has been given the right to inspect and test the Leased Equipment. Upon Lessee's taking possession of the Leased Equipment, it will be conclusively presumed that Lessee has fully inspected and found the Leased Equipment to be in good condition and repair. LESSOR MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO ANY MANNER WHATSOEVER, INCLUDING THE CONDITION  OF THE LEASED  EQUIPMENT, ITS MERCHANTABILITY, OR ITS FITNESS FOR ANY PARTICULAR PURPOSE. As to Lessor, Lessee leases the Leased Equipment "AS IS." Lessee's sole remedy for any failure of or defect in the Leased Equipment shall be the termination of rental charges, provided Lessee returns the Leased Equipment within 24 hours of the failure or defect.


 

OWNERSHIP. This agreement constitutes a lease and is not a sale or the creation of a security interest in the Leased Equipment. Lessee has no right, title, or interest in the Leased Equipment, except the right to possession and use as provided herein. The rights of Lessee under this Lease will be subject to and subordinate to certain security interests in the Leased Equipment held by CNH Capital America LLC.


 

OPERATING EXPENSES, MAINTENANCE AND REPAIR Lessee will be responsible for all expenses, including but not limited to lubrication and oil, repair or replacement of tires and tubes, repair or replacement of hydraulic hoses, excessive wear of ground engaging components, and all other charges in connection with the operation of the Leased Equipment. Lessee assumes all obligations and liabilities with respect to the possession of the Leased Equipment, and for its use, condition, and storage during the lease term. Lessee will at its own expense maintain the Leased Equipment in good mechanical condition and running order, allowing for ordinary wear and tear. The rent will not be prorated or abated while the Leased Equipment is being serviced or repaired. Lessor will not be under any liability or obligation to provide service, maintenance, repairs, or parts for the Leased Equipment. All installations, replacements, and substitutions of parts or accessories respecting the Leased Equipment will become part of the Leased Equipment and be owned by Lessor.


 

USE OF LEASED EQUIPMENT. Lessee will be entitled to the right of use, operation, possession, and control of the Leased Equipment during the Lease term, provided Lessee is not in default or subject to any security interest Lessor may have given or may give to any third party during the term of this Lease. Lessee will employ and have absolute control, supervision, and responsibility over any operators or users of the Leased Equipment. Lessee will use the Leased Equipment in a careful and proper manner and will not permit any Leased Equipment to be operated or used in violation of any applicable federal, state, or local statute, ordinance, rule, or regulation relating to the possession, use, or maintenance of the Leased Equipment. Lessor expressly disclaims any responsibility for Lessee's use, compliance, or failure to comply with any applicable federal, state, or local statute, ordinance, rule, or regulation. Lessee shall neither remove the Leased Equipment from the job address shown herein nor remove, direct or cause the Leased Equipment to be transported across state lines without the Lessor's prior written consent. Lessee warrants that the Leased Equipment will be used for commercial or business purposes only. Lessee shall not disconnect or tamper with the hour meter, odometer, or speedometer, and if these devices show signs of having been disconnected or tampered with, Lessee shall pay Lessor, in addition to all rental charges, ten dollars ($10.00) per hour for every hour the Leased Equipment is the possession, custody or control of Lessee. 


 

TAXES AND OTHER CHARGES. Lessee will be liable for and pay on or before their due dates, all sales taxes, use taxes, personal property taxes, business personal property taxes, and assessments, or other governmental charges assessed on the Leased Equipment in connection with this lease. Lessee will be liable for any fees for licenses, registrations, permits, and other certificates required for the lawful operation of the Leased Equipment.


 

INDEMNIFICATION AND LIABILITY. Lessee assumes all risk and liability for the loss of or damage to the equipment, for the death of or injury to any person or property, and for all other risks and liabilities arising from any accident or act of any nature whatsoever, or from the use, condition, possession, towing and transportation, or storage of the Leased Equipment. Nothing in this Lease will authorize Lessee or any other person to operate any of the Leased Equipment so as to impose any liability or other obligation on Lessor. To the maximum extent permitted by law, Lessee will indemnify, defend, and hold harmless Lessor, its agents, and employees from all claims, loss, or damage Lessor may sustain or suffer for any of the following reasons: (a) loss of or damage to any of the Leased Equipment for any cause; (b) injury to or death of any person including but not limited to agents or employees of Lessee; (c) damage to any property arising from the use, condition, possession, or storage of any Leased Equipment; or (d) any liabilities, forfeitures, or penalties for violations of any federal, slate, or local statute, rule, or regulation. Lessee will reimburse Lessor for all expenses, losses, liabilities, and claims of any type, including reasonable attorneys' fees, imposed on or incurred by Lessor because of Lessee's use or operation of any Leased Equipment, or because of the failure by Lessee to perform any of the Lease terms. Lessee will also pay interest at the rate of 1.5 percent per month from the day payment is made by Lessor through the day Lessor is reimbursed by Lessee. The indemnities and assumptions of risk, liabilities, and obligations by Lessee arising under the Lease during the Lease's term will continue in effect after the expiration or termination of Lease.


 

ACCIDENT, LOSS OF, OR DAMAGE TO LEASED EQUIPMENT. Notification to Lessor. If any property covered by this Lease is damaged, lost, stolen, or destroyed, or if any person is injured or dies, or if any property is damaged as a result of its use, maintenance, or possession, Lessee will promptly notify Lessor of the occurrence and will file all necessary accident reports, including those required by law and those required by insurers of the Leased Equipment. Lessee, its employees, and agents will cooperate fully with Lessor and all insurers in the investigation and defense of any claims. Lessee will promptly deliver to Lessor any documents served on or delivered to Lessee, its employees, or its agents in connection with any claim or proceeding at law or in equity begun or threatened against Lessee, Lessor, or both; concerning the Leased Equipment.

ASSIGNMENT. Lessor may assign this Lease or any rights under it at any time without Lessee's consent. Lessee agrees not to raise any claim or defense against Lessor arising out of this Lease as a defense, counterclaim, or offset to any action, by any Assignee for the unpaid balance of rentals due under the Lease or for possession of the Leased Equipment.

Lessee will not assign this Lease nor assign or sublet the Leased Equipment or any interest therein without the

Lessor's express written consent.


 

ACTIONS CONSTITUTING DEFAULT. Lessor may by written notice to Lessee declare Lessee in default on the occurrence of any of the following: (a) failure by Lessee to make payments or perform any of its obligations under this Lease; (b) institution by or against Lessee of any proceeding in bankruptcy or insolvency, or the reorganization of Lessee under any law, or the appointment of a receiver or trustee for the goods and chattels of Lessee, or any assignment by Lessee for the benefit of creditors; (c) expiration or cancellation of any insurance policy to be paid for by Lessee as provided for under the terms of this Lease; or (d) involuntary transfer of Lessee's interest in this Lease by operation of law.


 

RIGHTS, REMEDIES, AND OBLIGATIONS ON DEFAULT. After the default of Lessee, Lessor will have the following options: (a) terminate the Lease and Lessee's rights under the Lease; (b) demand in writing that Lessee immediately returns the Leased Equipment to Lessor; (c) declare the balance of all unpaid rent and all other charges of any kind required of Lessee under the Lease to be payable immediately, in which event Lessor will be entitled to the balance due together with interest at the rate of 1.5 percent per month from the date of notification of default to the date of payment; (d) repossess the Leased Equipment without legal process free of all rights of Lessee to the Leased Equipment. Lessee authorizes Lessor or Lessor's agent to enter on any premises where the Leased Equipment is located and repossess and remove it. Lessee specifically waives any right of action Lessee might otherwise have arising out of the entry and repossession and releases Lessor of any claim for trespass or damage caused by reason of the entry, repossession, or removal. After default, Lessee will reimburse Lessor for all reasonable expenses of repossession and enforcement of Lessor's rights and remedies, together with interest at the rate of 10% percent per annum from the date of payment. Notwithstanding any other provisions of this Lease, if Lessor places all or any part of Lessor's claim against Lessee in the hands of an attorney for collection, Lessee will pay Lessor's reasonable attorney fees. The remedies of Lessor will be cumulative to the extent permitted by law, and may be exercised the exercise of any remedy or right will operate as a waiver. No forbearance by Lessor to exercise any rights or privileges under this Lease will be construed as a waiver. Acceptance by Lessor of rent or other payments made by Lessee after default will not be deemed a waiver.


 

FORFEITURE OF LESSEE'S INTEREST ON DEFAULT. Upon default, for any reason, Lessee and Lessee's successor in interest will have no right, title or interest in the Leased Equipment, its possession, or its use. Lessor will retain all rents and other payments of any kind made by Lessee under this Lease.


 

RETURN OF LEASED EQUIPMENT ON EXPIRATION. Upon the expiration date of this Lease with respect to any or all of the Leased Equipment, or upon written demand for return of the Equipment due to Lessee's default, Lessee will return the Leased Equipment to Lessor during normal business hours, together with all accessories, free from all damage and in the same condition and appearance as when received by Lessee, allowing for ordinary wear and tear. If the Leased Equipment is levied upon for any reason, or if Lessee fails or refuses to return the equipment to Lessor, Lessor will have the right to take possession of the Leased Equipment and for that purpose to enter any premises where the Leased Equipment is located without being liable in any suit, defense, or other proceedings to Lessee. Lessee waives for itself, its representatives, agents, and employees all rights, claims, damages, losses, physical and pecuniary, caused by Lessor's repossession and agrees to reimburse Lessor for all losses, damages, costs, and expenses incurred by Lessor in repossessing the Leased Equipment.


 

DAMAGE TO LEASED EQUIPMENT. If the Leased Equipment is returned damaged or in a condition beyond ordinary wear and tear, Lessee shall pay Lessor the cost of repair and pay rent on the Equipment at the Contracted Rate until repairs have been completed. Ordinary wear and tear means the normal deterioration that naturally and inevitably occurs as a result of ordinary and reasonable use of the equipment on a one-shift basis (eight hours per day, five days per week). One shift means no more than 8 hours per day, 40 hours per week and 160 hours per month (28 days). The following are not deemed ordinary wear and tear: (a) damage from lack of lubrication or maintenance of necessary oil, water and air pressure levels; (b) damage from the lack of maintenance and servicing;

(c) damage from any collision, overturning, improper operation, overloading, or exceeding the rated capacity of the equipment; (d) damage in the form of dents, bending, tearing, staining, and misalignment to the equipment or any part thereof; (e) wear resulting from use in excess of a one-shift basis. Lessor shall be under no obligation to commence repair work until Lessee has paid the estimated repair costs in advance, further agreeing to pay the difference between the estimated and actual cost of repairs. Failure to return Equipment can in certain instances be considered a theft resulting in criminal prosecution. If Lessee elects to make repairs, such repairs shall be made to the Lessor's reasonable satisfaction and in a manner that does not adversely affect the operation or value of the Leased Equipment.


 

LIENS. Lessee will not pledge, encumber, create a security interest in, or permit any lien to become effective on any Leased Equipment. If any of these events takes place, Lessee will be deemed to be in default.


 

MANDATORY ARBITRATION. Any controversy or claim arising out of or related to this Lease or breach of this Lease will be settled by binding arbitration. The arbitration will be conducted under the then current rules of the American Arbitration Association. The decision and award of the arbitrator will be final and binding and any award may be entered in any court having jurisdiction. The arbitration will be held and the award will be deemed to be made in Los Angeles, California. The arbitrator shall award to the prevailing party, if any, as determined by the arbitrator, all of its costs and fees. "Costs and fees" mean all reasonable pre-award expenses of the arbitration, including the arbitrator's fees, administrative fees, travel expenses, out-of-pocket expenses such as copying and telephone, court costs, witness fees, and attorney fees.


 

INFORMATION REQUIRED FROM LESSEE. Lessee shall provide Lessor with the name and address of the project owner, the prime or direct contractor, the subcontractor, and construction lender, if any, to allow Lessor to serve any preliminary notice or other notice as may be required to preserve Lessor's mechanic's lien rights.


 

ENTIRE AGREEMENT. This lease constitutes the entire agreement between the parties and may not be amended, modified, or altered in any manner except in a writing signed by both parties. No agreements, representations, or warranties other than those specifically set forth in this Lease will be binding on any of the parties unless in writing and signed by both parties.


 

CHOICE OF LAW. This Lease will be deemed to be executed and delivered in California and governed by the laws of California.


 

HEIRS AND SUCCESSORS. This Lease and each of its provisions will be binding on and will inure to the benefit of the respective heirs, executors, administrators, trustees, successors and assigns of the parties to this Lease.


 

FORCE MAJEURE. Lessee hereby releases Lessor from all liability or damages that may be caused in whole or part by Lessor's failure to deliver the Leased Equipment within the agreed time, provided such failure is caused in whole or part by inclement weather, an act of God, accident, breakdown, act of a third party, or circumstances beyond the Lessor's control.


 

AGREEMENT SURVIVES PARTIAL INVALIDllY. If any provision of this Lease or the application of any of its provisions to any party or circumstance is held invalid or unenforceable, the remainder of this Lease, and the application of those provisions to the other parties or circumstances, will remain valid and in full force and effect.