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<br /> FTERMS AND CONDITIONS
<br /> 1. lease Agreement You agree to lease tom us the equipment described under'ITEM DESCRIPTION'and on
<br /> any attached Schedule(hereuhafter,'wiUm all replacement parts,repairs,additions and accessories,referred to
<br /> as the hent and as modified by Supplements to this Agreement from time to time signed by you and us.You authorize us to insert or cared missing information on this Agreement including your accurate legal
<br /> - name,serial numbers and any other information'describing the Equipment You'authorve us to change the amount of each Payment(set forth on page 1 of this Agreement)by not mare than 15%due to changes In the
<br /> equipment configuration which may occur prior to our acceptance of this Agreement or adjustments to rated applicable sales taxes.We will send you copies of any changes.You agree to provide updated annual and/or
<br /> quarterly finandaf statements to us upon request You authorize us or ow agent to obtain credit reports and make credit inquiries regarding you and your financial condition and to provide your information,including
<br /> payment history,to our assignees or thud parties having an economic Interest In this Agreement or the Equipment.
<br /> 2. Lease Commencement This Agreement will commence upon your acceptance of the applicable Equipment When you receive the Equipment,you agree to inspect it and verify your acceptance by telephone or,at our
<br /> request,by delivery of written evidence of acceptance satisfactory to us. Upon acceptance,your obligations under this Agreement will become absolute and unconditional,and are not subject to cancellation,reduction or
<br /> setoff for any reason whatsoever.You agree to pay us the amounts payable under the terms of this Agreement each period by the due date in accordance a with the Term and Payment schedule set forth on page 1 of this
<br /> Agreement Payments shal be delivered to our address or to such other address as we may designate in writing.You agree to pay an Interim rent payment equal to 1/30th of the monthly lease payment,multipled by the
<br /> number of days between rent commencement nt date and the date of the beginning of the first rental period.For any payment that is not received by its due date,you agree to pay a late charge equal to the higher of 10%of
<br /> the anaumt due or$22(rot to exceed the maximum allowed by law).
<br /> 3. Security Deposit The security deposit is non interest bearing and is to secure your performance under this Agreement Any security deposit made may be applied by us to satisfy any amount owed by you in,In which
<br /> event you will promptly restore the security deposit to Its full amount as set forth above.If all conditions are fully complied with and provided you have not ever been in default of the Agreement in the Default section,the
<br /> security deposit sell be refunded to you atter the return of the equipment In accordance with the Return of Equipment section
<br /> 4. WARRANTY DISCLAIMER:WE MAKE NO WARRANTY EXPRESS OR IMPLIED,INCLUDING,WITHOUT MUTATION,THAT THE EQUIPMENT IS FiT FOR A PARTICULAR PURPOSE OR THAT THE EQUIPMENT
<br /> IS MERCHANTABLE.YOU AGREE THAT YOU HAVE SELECTED EACH ITEM OF EQUIPMENT BASED UPON YOUR OWN JUDGMENT MD DISCLAIM ANY RELIANCE UPON ANY STATEMENTS OR
<br /> REPRESENTATIONS MADE BY US.YOU LEASE THE EQUIPMENT AS IS°.NO REPRESENTATION OR WARRANTY WiTH RESPECT TO THE EQUIPMENT WILL BIND US,NOR WILL ANY BREACH THEREOF
<br /> RELIEVE YOU OF ANY OF YOUR OBLIGATIONS HEREUNDER.YOU AGREE THAT WE WILL NOT BE RESPONSIBLE TO PAY YOU ANY CONSEQUENTIAL OR INCIDENTAL DAMAGES FOR ANY DEFAULT BY
<br /> US UNDER THIS AGREEMENT.
<br /> 5. Statutory Finance Lease:You agree that this Agreement qualifies as a statutory Finance Lease under Article 2A of the Uniform Commercial Code.To the extent you are permitted by applicable law,you waive all rights
<br /> and remedies provided by Article 2A(sections 508-522)of the Uniform Commercial Code.
<br /> 6. Security Interest You authorize us to file a financing statement with respect to the Equipment If this Agreement is deemed to be a secured transaction,you grant us a security interest in the Equipment to secure all
<br /> amounts you owe us under any agreement with us.
<br /> 7. Use Maintenance and Repair of Equipment YOU WILL USE THE EQUIPMENT ONLY IN THE LAWFUL'CONDUCT OF YOUR BUSINESS AND NOT FOR PERSONAL,HOUSEHOLD OR FAMILY PURPOSES.You
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<br /> not move the Equipment from the equipment location fisted on page 1 without our advance written consent You will give us reasonable access to the Equipment so that we can check the Equipment's existence,
<br /> condition and proper maintenance.At your cost,you will keep the Equipment In good repair,condition and woildng order,ordinary wear and tear excepted.You will not make any permanent alterations to the Equipment
<br /> You wiil keep the Equipment free and dear of all lens.You assign to us all of your rights,but none of your obligations,under any purchase agreement for the Equipment We assign to you all our rights under any
<br /> warranties,so long as you are not in default.
<br /> & Software:Except as provided in this paragraph,references to'Equipment'include any software referenced above or installed on the Equipment We do not own the software and cannot transfer any interest in it to you.
<br /> You are responsible for entering into any[cense and/or other agreement(each a license Agreement')required by the applicable software supplier or software licensor no later than the effective date of this Agreement and
<br /> you will fully comply with such License,If any,throughout the applicable term.We are not responsible for the software or the obligations of you or the software licensor under any license Agreement
<br /> 9. Taxes and Lease Charges:You agree to pay al taxes,costs and expenses incurred by us as a consequence of the ownership,sale,lease or use of the Equipment including all sales,use and documentary stamp taxes.
<br /> Any fee charged wider this Agreement may include a profit and Is subject to applicable taxes.In addition,you agree to pay us a UCC tiling fee of$35.00.
<br /> 10.trdenrnity: You will indemnify and hold us harmless from any and all liabily,damages,losses or injuries including reasonable attom ey's fees,arising out of the ownership,use,condition or possession of the Equipment,
<br /> except to the extent directly caused by our gross negligence or wilful misconduct.We reserve the right to control the defense and to select or approve defense counsel.Tiffs indemnity will survive the termination of this
<br /> Agreement
<br /> 11.Risk of Loss;insurance:You are responsible for risk of loss or for any destruction of or damage to the Equipment No such loss or damage shall relieve you from the payment obligations under this Agreement You agree
<br /> to keep the Equipment fully insured against loss unit this Agreement is paid In full and to have us and our assigns named as lender's toss payee.You also agree to maintain public liability insurance covering both personal
<br /> injury and property damage and you shall name us and our assigns as additional insured. Upon request;you agree to provide us certificates or evidence of insurance acceptable to us.If you fail to comply with this
<br /> requirement within 30 days after the start of this Agreement(a)we have the right but no obligation to obtain Insurance covering our interest(and only our interest)In the Equipment for the lease term,and renewals.Any
<br /> insurance we obtain will not Inure you against third party or liability claims and may be cancelled by us at any time.You wll be required to pay us an additional amount each month for the insurance and administrative fee.
<br /> The cost may be more than the cost of obtaining your own insurance and we may make a profit You agree to cooperate with us,ow insurer and our agent In the placement of coverage and with claims;or(b)we may
<br /> charge you a monthly property damage surcharge of up to.0035 of the Equipment cost as a result of cur credit risk and administrative and other acts,as would be further described one letter from us to you.We may
<br /> make a profit on this program.Once an acceptable certificate or evidence of insurance is submitted,any such fees will be discontinued.If any of the Equipment is lost stolen or damaged you will at your option and cost
<br /> either(a)repair the item or replace the item with a comparable item reasonably acceptable to us,or(b)pay is the sum set forth in the Remedies section.
<br /> 12.Right to Perform:if you fail to comply with any provision of this Agreement,we may,at our option,perform such obligations on your behalf.Upon invoice you w"0 reimburse us for all costs incurred by us to perform such
<br /> obligations.
<br /> 13.Representations:(a)You represent and warrant to us that(1)you have the lawful power and authority to enter into this Agreement and(2)the individuals signing this Agreement have been duly authorized to do so on
<br /> your behalf,(3)you will provide us such financial information as we may reasonably request from time to time,(4)all financial information provided(or to be provided)is(or will be)accurate and complete in all material
<br /> respects,(5)you will prompty notify us in writing if you move your principal place of business or there is a charge In your name,state of formation,or ownership,and(6)you will take any action we reasonably request to
<br /> protect our rights in the Equipment(b)We represent and warrant to you that(1)we have the lawful power and authority to enter Indo this Agreement and(2)the individuals signing this Agreement have been duly
<br /> authorized to do so on ow behalf.
<br /> 14.Default You MI be In default under this Agreement It(a)we do not receive any Payment due under this Agreement within five(5)days after its due date,(b)you fail to meet any of your obligations in the Agreement(other
<br /> • than payment obligations)and do not correct such default within 10 days after we send you written notice of such default,(c)you or your guarantor become insolvent,are liquidated or dissolved,merge,transfer a material
<br /> portion of your ownership interest or assets,stop doing business,or assign rights or property for the benefit of creditors,(d)a petition is fled by or against you or your guarantor under any bankruptcy or insolvency law,(e)
<br /> any representation made by you is false or misleading in any material respect,(f)you default on any other agreement with us or ow assigns or any material agreement with any entity,or(g)there has been a material
<br /> adverse change in your or any guarantor's financial,business or operating condition.
<br /> 15.Remedies:If you are in default we may,at our option,do any or all of the following:(a)retain your security deposit,if any,(b)terminate this Agreement(c)require that you pay,as compensation for loss of air bargain and
<br /> not as a penally,the sum of(1)all amounts due and payable by you or accrued under this Agreement plus(2)the present value of al remaining Payments to become due under this Agreement(discounted at 2%or the
<br /> lowest rate allowed by law),and(3)(i)the amount of any purchase option and,if none is specified,20%of the original equipment cost,which represents our anticipated residual value in the Equipment or(1)return the
<br /> Equipment to a location designated by us and pay to us the excess,if any,of the amount payable under douse(3)(i)over the Fair Market Value of the returned Equipment as determined by us in our reasonable discretion,
<br /> (d)recover Interest on any unpaid balance at the rate of 12%per annum,and(e)exercise any other remedies available to us at law or in equity,including requiring you to i nmedtately stop using any financed software.
<br /> You agree to pay our reasonable attorney's fees and actual court costs including any cost of appeal. If we have to take possession of the Equipment you agree to pay the cost of repossession and we may sell or re-rent
<br /> the Equipment at terms we determine,at one or more public or private sales,with or without notice to you.You may remain liable for any deficiency with any excess being retained by us.
<br /> 16.Purchase Option:At the end of the Term provided you are not in default and upon 30 days prior written notice from you,you will either(a)return all the Equipment,or(b)purchase all the Equipment as is,without any
<br /> warranty to condtion,value or titre for the Fair Market Value of the Equipment as determined by us in our reasonable discretion plus applicable sales and other taxes.
<br /> 17.Automatic Renewat Except as set forth in Section 16,this Agreement will automaticaly renew on a month-b-month basis after the Term,and you shall pay us the same Payments arid lease charges as applied during the
<br /> Term(and be subject to the terms and conditions of this Agreement)until the Equipment is returned to us or you pay us the applicable purchase price(and taxes).
<br /> 18.Return of Equipment ff(a)a default occurs,or(b)you do not purchase the Equipment at the end of thi'Temn pursuant to a stated purdiase option,you wig Immediately rerun the equipment to arty locations)we may
<br /> designate in the continental United States.The Equipment must be returned in'Average Saleable Condition'and properly packed for shipment in accordance with our recommendations or specifications,freight prepaid
<br /> and insured.'Average Saleable Condition'means that all of the Equipment is Immediately available for use by a third party,other than you,without the need for any repair or refurbishment Al Egr ipment must be free of
<br /> markings.You wll pay us for any missing or defective parts or accessories.
<br /> 19.Assignment We may.without your consent,assign or transfer any Equipment or this Agreement or any rights arising under this Agreement and in such event air assignee or transferee will have the rights,power,
<br /> privileges and remedies of Lessor hereunder,but none of the obligations.Upon such assignment you agree not to assert,as against ow assignee,any defense,setoff,recoupment claim or counterclaim that you may have
<br /> against us.You will not assign,transfer or sublease this Agreement or any rights thereunder or any Equipment subject to this Agreement without our prior written consent
<br /> 20.Personal Property Tax(PPT):You agree at our discretion to(a)reimburse us annually for all personal property and similar taxes associated with the ownership,possession or use of the Equipment or(b)remit to us each
<br /> bung period our estimate of the prorated equivalent of such taxes.You agree to pay us an administrative fee for the processing of such taxes.We may make a profit on such a fee.
<br /> 21.Tax Indemnity:You agree to indemnify us for the loss of any income tax benefit caused by your acts or omissions inconsistent with ow entitlement to certain tax benefits as owner of the Equipment
<br /> 22.Governing Law:BOTH PARTIES AGREE TO WAIVE ALL RIGHTS TO A JURY TRIAL.This Agreement and any supplement shall be deemed fully executed and performed in the state in which our(or,if we assign this
<br /> Agreement our assignee's)principal place of business is located and shall be governed by and construed In accordance with is laws.Any dispute concerning this Agreement will be adjudicated in a federal or state court in
<br /> such state.You hereby consent to personal jurisdiction and venue in such courts and waive transfer of venue.
<br /> 23.Miscellaneous:This Agreement contains the entire agreement between you and us and may not be modified except as provided therein or ha writing signed by you and us,and supersedes any purchase orders.We will
<br /> not accept payment in cash.If you so request and we permit the early termination of tis Agreement you agree to pay a fee for such privilege.Notices must be in witting and will be deemed given five days after mailing to
<br /> your or our marling address.lf a court finds arty provision of this Agreement to be unenforceable,all other terms of that Agreement will remain in effect and enforceable.You agree that any delay or failure to enforce our
<br /> rights under this Agreement does not prevent us from enforcing any rights at a later time.In no event will we charge or collect airy amounts in evrrvc of those allowed by applicable law.Tone is of the essence.You hereby
<br /> adnowledge and confirm that you have not received any tax,financial,accounting or legal advice from us,or the manufacturer of the Equipment It is the Customer's sole and exclusive responsibility to ensure that all data
<br /> from all disk drives or magnetic media are erased of any customer data and information.TO HELP THE GOVERNMENT FIGHT THE FUNDING OF TERRORISM AND MONEY LAUNDERING ACTIVITIES,FEDERAL
<br /> LAW REQUIRES All FINANCIAL INSTITUTIONS TO OBTAIN,VERIFY AND RECORD INFORMATION THAT IDENTIFIES EACH PERSON WHO OPENS AN ACCOUNT.WHAT THIS MEANS TO YOU:WHEN YOU
<br /> OPEN AN ACCOUNT,WE WILL ASK FOR YOUR NAME,ADDRESS AND OTHER INFORMATION THAT WILL ALLOW US TO IDENTIFY YOU.WE MAY ALSO ASK TO SEE IDENTIFYING DOCUMENTS.
<br /> 2 of 2 IFS/TBS FMV LEASE AGREEMENT—0518
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