~ 7 Z v j'z.
LL';,SI,
LF1A;~E NU!1ill'H: 9233-03
LkIASE macie~ .his ~T~ day of_ ~: ,1992 , by anci
oetwtcr. Auvlnced 'P'~1-Com :;ystr_.ms Co por~,tion, locat d at
955 idatcr StC6:_rt, K;drrV illo-, Texas, her"lnaftc.r rNfE rra'u
tc ~.s Lessor, and District Judae's Offir_e,locat~d
apt Kerr County Court llous~., F:rrrvillc, i'exe',s referred
to ., _, the' L~..ssc.~_ .
Lessor. and L«;ss~,~_ r.~a rtf: red to ccllc:ctively herein as
the "parties". In considerr ~.t icn of the= mutual promise s
containti~d ilcrein, tnr: parti s i~e'reto agree z:s follows:
APTICLF. 1. Ii~'IIIP.•9LidT LF.A;E
Tt], LESSOr ll~rcby le<]x.cs ro th.. L!:'ssre anal L.-ssec hereby
1E'CiSE':; :in(: L11LP5 from t~llc- Leis OT, Lill t. i]C
telecommunications ~ruip.n«-nt r,nd oth:_r prop<~rty
OF SC 1'1b~C; iI1:
1) 1'he scile.<;ulE. in Exhibit A, incorpore,t"d into this
leas: ~~ if it cacr<~ rc~cit~~d verbatim ht:roin, execut'~d by
t.h~: par tics concurrently her:~.aith or rcr~aft `r and m~;de
a part. cf h, rl:,of.
?) Ar~y sch`c;ule or schcr,ules in PXhibit ? hr rc inaftcr
a xcurcd by ti~a p;:rtics hc,reto and ma,1«. a part of herccf.
All sai~' telECC:omunication.~ e,uipmEnt. in Lx:]ibit A, o.nci
X11 or her property in Exi]ibit A re.s.ribr: ir. all s,id
sch~ ctul~ s .:r~ he,r.;ln=ift r c all~d "F=cuipmcnt" r.na ,c.l]
said sch~uult s in Exhibit A :arc r;,rcrinaftcc i:cllectively
c~.lled the "sch~~:iult_~".
Th.= tore of thls tease respecting :ach it,~m cf ~-yuipmEnt
in Exhil}it coalm :nces on the rata- that the itrT is
lnstrl11~:1G Orl th~_ Le SS~i:'S jal c':'lllSi', 'ii"I G= t:rm Of th1S
LE"aSB ShZ'll JE foY the p°rlOU S~lOwii On EXhlblt °A°,
a~>ginning as cf the. c;atc tha item is ir.st.,llc'd :::, ~«.t
out im[ncdiate ly he rc~inbe Eor~..
Amoun,-
.S.R1 The t:cnt Lor ~,ny and every item cf ~yuipin~.nt
c;cscrib~,cs in tht:. :':~:]',.ciclr_ lr. Exhibit shall b:' tkn°
t«.nount: cu~sign,~ted by itch in tile. s.,iri sch~~clule. ;'hc
1,. ~_, ;n 11 y „u.:! . c.,ur~_., ~ , , Ilir. ,:rir.ty (:Ju) cl"lays of
,r,+..: of .pilling, in t.he' nmour:ts cuxi t nc~': ti:n~.s ~_~i
ford] in the- s%~he'dul:~ ir: F;xhibit <~., tct the sales offic•:,,
of AdVI^•nC~as Tr_L-COQl `.iy5t`_{P.S COr~JOT~lt lOn, ~~S 93ai Ur
Strc.6t, i~ r"rV ll f p.., T~JX~i :i, %`r'li2<S.
page-1
G<.curity Deposit
3.02 As security for the prompt and full payment of tiiv
rent, anu t.hc= f~:ithful and t:imtly pecforms+nce of all
provisions of this 1.-•:rst:, and ~~ny extension or r=r.awai
thereof, to be perform_•o on its part, tha~ Lc~ssce> has
pl.,dged anu dtposit~c? with the Lt:ssor tklc amount set
fortis in [i~~_ sch~t9ule in Exhibit :,. In tk;e event -r,y
de--fault sisal] be made• in the performanc+ of any of the
convenants on t:rn o~;rt of tnc Lessee: herein contained
with the r~:sp•~ct to any item of equipment, the Lessor
shall hav~_ t}r~- riyi~t, but shall not bc- eb].igatced, to
aptly said security dt-posit to th.- curing of said
ticrf,:ult. i9ny such ~:pplication 'oy tt,< Le>ssor k:a11 not
bc, dcfc_nsc, to any action by theta Lessor arising out of
sair', dcfr-self; ana, or. demand, they LessvEt~ shall rastore
svid security deposit to tile• full <,mount +-:t forth in
the scheUUlc in Exhioit A. r,n th~~ !_xpiration of this
le<,s._ or any c=xtr>nsion or r~new~.l thereof, provide_+! the
Gesscae has paid al.l of Che rent h: rein cal lets for r.nd
fully per.f.ormed :all oL the other provisions of this
Ler,se to bc° performer<' on its part, the Lt.ssor will
return to the Lcssta any then, remaining balance of sair9
security deposit.
DE-fault
3.03 Ii tn~ Lcssc•e a.tth regard to ;ny xtc;o or items of
eduipment fails to pay any rant or other amount her=in
provider] within thirty gays of the: bill bate, or if any
t_x~z~cution. or any other writ cf proce:rss shall be issued
in any action er proceeding against the La~ss~ c tah:rreby
Sa ld eClUl p'n tint 1T„,ty 'Oe 5~_°1 Ztr 4:, L: kr, I7, Or C_lstr;alnoi7, Or
if a procc-tiding in ban;;ruptcy, receivership, or.
insolvency shall. be eormm~ced by L:-:secs, voluntarily or
involuntt~rily, against Lessee, or if L~sse~ shall enter
into ~rny arrangement or co:rposition with his :.:r~•ditors,
cr if Lessee, with rF>gar.d tc +_~ny item. of _:quipmcant,
f.,ails to observ^, keep, or perform any oth%=r precision
of this L~:asc requireu to b" observed, kept ox performed
cy Che L:;ssee, the Lt,ssor shall, if such default shad
continue for tin eggs after written notices they<•ef to
Le:sse~e htavc the right ~~nc] option to <xtr.cisc any or a7.1
of the folio;aing remc•di:.s:
1) To terminr,ta this Least and Lessee's rights under
ti~is Le:: se as *_o all items cf property.
2) To ec:~lare the: unpaid balance of the contract ;a of.
such c?:?te, as ::c-11 .s all other char.ge:s of any i;ind
r.:quired of Lt sscr= under the: Lt-•~sU, to be due--~ an.i
pay..+b1e immet]iately, in which event Lc_ssor shall. be
entitled to the balance aue, together with interest at
the hicl':,e-st_ rr,te per month legally p<:rmitted by
app]ir.ablo laeo, Lrom tic d„tc of rotificatior. of default
to the c+.:te of p::ay:nu:t. In this r~=gars:, it is
;acknowledged by Loss:e that fist t.cuipmtnt l~ase.d
hc=rcunc'e.r h.,s be n spec sally ordtr~r_', and aquirc-d ;ay
Lessor fee 1~:as~ to L<.sse:e huc~.undex, and that. the ]case
to p,rties other than LdssEC:. It i5 tr,r;-for.e ar,re~ci
b;twc~e.n tht parti~us hereto, that that portion of the
s•mount rlus, frc:r~ La...se uncicrr. this sub-paragraph fol. l.a~aing
breach by L:ssec, which constit:utt:s the unpaid re;nt:als
due: and payr,t~lc for items of equipment ]cased, uo to th<
c]ate o£ Lessee,'s breach, :and x.11 unpaid rentals .3u~~ or
to b+comt :Su_ to Lessor un+9tr this Lease fron, th=- data
cf Lessse's brr:acin to the end. of the: term of this Least
.., i£ L ss~ had not_ breathe., this L~~--,s~~, are liquid=t: c1
amag<s.
3) "1'o takt. pcss~.ssion of ~,ny or ra1J. ite,r~s cf e~uip~nc=ct
icasc;9 to L.sse,~ he~xeun,?r.:r, ~cithout. further d~_~r~and or
pace-2
native, wherever the sa;n~ m~.+y be ]orated, without any
court crd:~r cr other process of l.,w. Lessc<~ acre es
that, upon uefault and r,oti:~e as s~_t. out above:, Lcsscr
or its .gents, may without br.~ach of the p arc, enter
anon any ;arc-raises wharf the e'-qui;am~nt may be located,
,ne repossess an:: r move it.. Lessee- specifically w:.i~-'es
~~ny right of action Lessae might otiterwisr_ have ari;>iny
out of the entry ano t.< poss~cssion, :rrti hereby r::le c;sas
Lessor from any claim for trespass or demage causcc3 by
r.e°-sson of the- r.ntry, r°~possrssicn o'r removal. Any snir?
tak.iny of uossession shad.. net constitutr_ a termination
cf tha L~::,se :~s to crag or ~+]] items of ecuipment unless
~~he Le-ssor ex.pre~ssly so nctifi.as thr Lesser> in writing.
4) To pursue Deny other rc_:nc::iy at iow or in equity.
Pdot_oaithst>.nding any said repossession, or any ot.~c:r
ac~tio^ which the L~.~ssvr may t.a'te, the Lessc-c shall bra
anc± reumtin lie'al: for tirr full perLormance of all
cbliu:,tions to be po-rforned by the Lassee unrcr t:hia
Leas.
All such remedies are cu~i:u]ativ;': to t:hzt extent premitted
by lraw, an<i may be ex:: rciseci concurr_•ntly or .~ paxately.
The e:~xercise of on< or mor.: ~~'medies shall r,ot br_r c9eeme•r:
to iar.=clu~te tree ex:,rci.~e of <any ether xesntdy.
.04 '1'he Lesscv agrees to pay the, rent and ot;:~et:
amounts hercurr9er rr_y~+r~aLess of -iny cl_:im, +:efensc, or
offset which m.+y be asserteu icy the Lessee or on its
1JehH].f .
3,t}5 Any failure or delay or for:~bearance on the part
of Lessor to cxc rcise _~ny r Tr,dy, nrivil~~ye:~ cr x'iyht
unc::•r. this Lease shall not opere.tr- pis :~ waivc:~r of
L: ssor's r.iyiit t.o e;xr rcis+:. .,ny such right or rc,me~ciy
i+rrvunder, but to the contrary, all such rights,
rrm~ac'ies .ind pr iviler*es shall. continue. in ,,ffect ens if
no failure, c7e~ls,y or~foreb~:ar.ancE h~+d occurred.
::ce_ptance by Lessor of rent or oth~.rr r,r3ymer,t mace by
L.~_sse,-^ after default .ind notice shall not be dceme~d a
waiv~_r of Lessor`s rights anc: r~~medir~~s arisiny from
Lesec.'s dt.fault. No covenant or conc:ition of this
L:.,se n y b+. waiv,:d except by :zritter, consent of Lesser,
and such written waivrar of _:ny ttr;n of this Ltasz. shall
be affective only in the specific instance and for the
specific purposE; yivEn.
RRTICLli 4. USE
9.01 Puriny the tern; ix.rc-of, Lessee sh.+ll nave the
riyt~tt to the use, operation anc, s~oss-assicn cf the
e,uipmcnt l.e,~sed }~tr_reunner, i~rovided tl~tat Lass>e be not
in default of gang of the provisions cf tiU Lease.
Lcssec shall have= absolute= control, supervision ~.nd
re:soonsibiliiy ov_r any operators or users of the
proc~~rty, subject to the r~strictior.s set out
hc.rc-rin,~ftc- r.
4.02 Lassee, shall use then lc~asc,d e:quipme2nt in ~~ rare~ful
.and propel mannr r, ~xn:: agre:~=s not to permit any leased
hronerty to be operated or uses in violation of any
anpliccibl~:; f.~car.ral, st.atr: or ].cc~~l statutE law,
or~is,nces, rule or ruyulaticn. L:~ssc: agrees to
reimburs. L+:ssw: in fall fr,r '17 d.~~nc:gES to the.
~quipmc-nt arisiny from any misuse or neylinent act by
Le.ssce:, its :+yents or : mployc~ s.
4.03 L<_ssec rcorcascnts ^r.d warrants to LESSOr as a part
of the consiueretion h~r:iot, t,h~,t the ie=ssc~d equipioent
will be• us:d for commercial or businc-ss purpcsa:s only.
lag. _~
?.F2T1CGli `.. 1N:iYF,C'iIG;v
'Tht~ L«-:ssor stall, at any and a].1 resonable times, huvc~
thr> right to o~nter into an? on the pr'.nisc•s where t_he
qui,~me:~r.t may be locr«tad for the purpose of inspecting
<_ `
th= s..>,;nc- and ooserc: rg r rs use 'I'hc L -_ :. - ~ shall. g eve
the: Gcssor immediate notice of any attachircrnt or other
judicial process aif:_cting any item of cquipmen.t and
shall, wnE*m:vae r~questcu 'ay the Lessor, advise tP~e
Lr,:ssor of th, cx.;ct location of the equipment.
AI2TICLli 6. ALTERATIU"7S
4;ithout prior writt..=n cons<nt of the Lessor, the Lessee
shall not mdkc ,;ny alts-'rations, cdditions cr
improvem<=nt5 to the <~quipment. ia11 additions rind
improvem:_nts of o:hatsotver kinu or nltur~ :race to the
~,quipment shall ~~.long to <]nii become the ;>roperty of th..
Lessor. on the tcr:nirr~ticn of the Lea~s«-.
AR'1'ICLE 7. LOSS ~.n~i DAMA~hS
i.Gl The Lessee :^::=re,by :,ssu:nes snd shall bear th:^
:.ntire risk of loss rind damage to the equipmc,nt from any
snd every cause from the time ar.y -auch equipment is
uc~_ivered to Leess_~_,'s premises, whether or not installed
by Les or at the time cf ar.y such less.
7.02. in the u:vent of loss or Damage of eny kind to any
item of e;yuin~nent, the L: ssce.:r, ,t til~• option cf the
lc==.ssor, shall:
1) Place thr:~ samo in good rc,p-sir, condition, and
workinr, ord<:r.; or
2) F.e places the, scams with lik.:r _yui.pme.nt in good repair,
condition, anci ,corking ore<_~.
3) Pay to Lessor the replaccmc;nt. cost thereof.
FRTICLE 'I. SUT+RPCdDER
Or, the expiration or earlic>r termination of this Lease,
wiY_h respect to any item of eruipmuut, the Lesse, shall
return the same to file Lessor in gocd repair, condition,
and working ordcrr (ordinary ;,;ear_ anc] tear resulting from
prop~,r use the>rc_of cxp~ct~=d) in the fo lowing crrunner as
m.,y bc_ specified by the Lc,ssor:
1) f;y delivering such item of <_,qui,~~ent at the Lessca's
cost. unc! E^xpcnse to such ,lace as the Lessor s'r.all
specify within the city or county in wni<:h it was
d e.11V."rF: C. t'.o thci' Le-: .CJ SI'.'t° Or t0 wh 1011 It SJd i mOV ed W1 th
the writtrc: consent of the Lessor; or
2) fly loading the: item of equip:r~:,nt at the LeSse«,'s
cost :inca 4xucnsr_ on ooare such car.ri:::r the Lessor
si'ir;ll specify an%.e shipping thc~~. same , frE~ight collect, to
thc~ dcestination by rite Lessor.
AkT1CLP J. Iht3iJRANCL: ono ~.P:XtiS
Insurance
9.01 'Ins, L.~ssec. shall keep the eduipmer.t insured
ay~inst all risks of less or ci,moye= from ev«.ry cause
whatsoe:vcr for not less than the full rc~place:r.cnt value,
th~rcof as dztermined by t.h LtSSOr. Phc> Lessae siialJ
carry public liability :and property damage insur_crnce
ccv,_r.ing tnta c<luipment. tall _,~~id insure,nce sh.;11 be in
the form and amount Lind with companies approved by the
Li:'.S SG L', r;d sha 1.1 be in t_h~_~ joint name-s of the Lr-ssor
u ge:_a.
a Ri7 Le sSE6e. `l hc"' LL SSEu S'tldll pay til E' pr L~[n 7. U'iWS 2'..hC'r2f Orr'
and shall. deliver s:: id pOliciea, cr duplicot~2d thereof,
to the: Lessor. Erich insursrr Shr371 :,g ree~, by en~?orsement
on the' policy issued by it or oy inuellend~_nt instrument
furnisi7ed to the Lessor, that it o;ill give. the L~,ssor
thirty inys '.ar,*_tc:n not7c~ befor+_~ the polir.y ir, questior.
shall 'oc alt~reu or cancellr~-d. The: nrocc:c:cs of such
insurc.nc~^, .~t the option of the Lessor, shall be dppliar'
tovrard thcr rcrpl;~ccm~rnt, restoration, or rep~3ir of the:
cqui pmc nt .
`i'aX~9
+3.02 T'he Less'.:.; shall ',;eep the equipment Tree and cleaar
ct all irvirs, liens, :,I;d e_ncumbrances r~nG shall pay X11
17.Cc nSE f~r:5, Y<-g l5 tr cit lGn lees, as Sc 5511 ,-ntS, C}l~irC ,S,
,~md taxi-s which may now or hcre:efter ue: i,nposcca on the:
1 c?as 1nC~, relitl ng, Siil l', pOSSG~SS lOn, Or USt,' Gl t'iles'
equipment, ~~x~luuing, i;owwcr, all taxes on or :rP:cured
by the Lesscr's inco;nc, or ad valorem cax'~5 lcwicd by
reason of ownership of ti:e equipment.
Lessor's Payment
9.U3 In case cf failure of the Lcss.c to procure or
maint<~ir. said in5uran.^a: or to pay said fey s,
asse.5sments, c'r,arge=s, ;,nd taxra as herein before
spc'cifiecl, the Lessor s:nwll have tr3c- right, but sh:+ll
not be obligatcci, to effect such 7nsuranc:, or nay said
fCE"S, USSCSSmntS, lhurg@S, nu t.iXES, 7S the G.lSE +ney
i.~e. 1n that a vent, tl7e cost thereof shall be re payable
to the Lessor :dith tlr.- ne-xt inst.311me;nt of r«.:r,t, and
failure' to r<apay than same carry with it the s~;me•
cons,,qucncros as f;,iiur~: to n,,y any inst=.ilment cf rent.
FsRTICLE ] 6. PEIZ i~~ilAL i~.;C)i Et'1'Y
a'i~15 <<_'~.1I :: iC~ nC 1S, anG Shell dt x,11 t1:TlBS Jv .•-i net r'1IlL11n,
p..rr:;n;l prcp:.r.ty, cotwithstnndiny th7t the e'quilam~.nt or
any part tt7eri=of m,_,y now b. , or. hr rc;after become, in any.
:Wenner affixed cr .attached to, or embedded in, or
pcanT,3ncmtly r_sting on, re~1 pione,rty or any building
there-cn or, attaciu'd in any manmar to ti7at which is
p~rmane-nt as by means of c=_;n+_nt, plaster, nails, bolts,
screws, or cth~rwise.
ATL:1CLli 17 . 0':vNER3iI'r
Th,_ ~quipm~'nt is, and shall at all time's b•~ nd remain,
ti3r so1.o ane exclusive' property of t!"3e Lessor. The
Less~.e sh~.~ll. have.- no right, title, or int~_rest tr,e~rein,
exc~^pt as ex.prssly se't fcrta3 in tile: L~c,s, .
A12'I'I:'LE 1<. ASSLG[d~^1ENT
Lc?SSE e' S ~;SSlC)nTcnt.
12.01 iviti~out: prior written consent of th; Lessor, the:
Lesse:c sh<,11 not:
l) Assign, transfer, pl~_dc)~ , or hypotiz~cate this Le:use,
thy. +-yuinment: or any pert of it, or any int:-rest in it;
or
2) Sublet or tend the equipment ox any part of it, or
;~+rmit. the equipment or any part of it to b usccl by
~,nyonc other t`7an tr3e L~~ssa_•c or ti7e Lessee's employees.
Consc_nt oy the L~ ssor to c:r,y oL t'!:ase nrohibitc6 acts
applies only in thF: yivcn instant"e>, ane3 is not .: eonse::nt
to any subs,~uu~nt like :act by tau LF^ssee or any cth<r
p~'9E'-5
person. Lessor's consent to these prohibitea acts s•.iall
not be ur.r~ anon;bly w•ithi,arlci.
Lessor's Assiyn;nent
1.02 it is unuerstood tiZat the Lessor contemplates
ass~yninq tl;is Lease or mortgaging the equipment., and
that the assiyne~ may assign it. A]1 riyhts of the
Lessor under this LE:ase may be ;~ssignc.d, pledged,
mOrT.~~ayE'd, t.r-ansftrYi'G, ar atfle'rL71Se dlsgOSE'G Of, E'1thE.l"
in whole. or in p<~et, without naticc: to the L:.:ssE>.e. Lt
the Lessor :assigns this GaasE: oi' tt:e rentals ciuv. or r-c
b i.COmP <?UF' k; r?rE L'nCI.~L Or F:ny GthCr 1ntc~rC St '~1•~LE?la,
wt;rtnar as sE~~~~urit~y for r,ny cf its ind~-bteciness oc
oth_r~:ris,.~, t.Ys•~ sas,e sF~,~ll. not const.itut~- a br:,ach or
default 'uy the Lessor hereunder or pursuant to ..,ny
provision i,ertur~uer. ",ny assiyn:~ of L,_ssor sh<~11 b~.
obliyatc.a to pcrfor.:n ,ny duty, covenant, or conaition
re-quires tc b_ o~rformad icy th~> Lessor under the terms
of this Lc.,se, and shall hav<-. all of tha rights, pocae'rs,
pr ivilcges and re~me<lics of LcsSOY set. forth in this
Luse. In t11e :_vE:nt of a.ssignmc:nt, Less-~~ shall. be
obligated to assiyne.c~ fcllowin~i written notice of such
<,ssignmc.nt.
AF:TICLL; 13. Iid'JF."7NiT:
The Lesser shall ind,-mnify thi; Lessor against, and shall
hold tic- Lesser harmless from, any and <rll claims,
actions, suits, proceECiinys, cost, expenses, damages,
and liabilities, including c;ttornEy's fees, ::,rising out
of, connected with, or resulting from thr~ use. oc
,~ossE-scion of t.,e le;tsc~d equipment, including, without
limitation, the selection, delivery poss~_ssion, use
operation, or return of tha cquipm•~~nt.
r"aR'I'1CLP. 14. GENERAL PROVISIGidS
LESSOr's lixpans<.s
19.01 Thai Lessee shall pay thcr Lessor all r-c-,sonabl,
costs and axpens~.s, including reasonable ttornr,_y's
fees, incurred by the Lessor in excrcisina, any of its
rights or r:medi,_s he_r~-uadF~r er anforcing •~.ny of th.-:
terns, Condit-ions, or pr-ovision hereof clue to L~.ss~c's
brt~<.ch.
Concurrent RESm<~dies
19.02 Cdo right or rrsmcdy h<,rein conf~~rr`d on or
reservE-:: to the LE.ssor is exclusive of any other right
or rE•m.~dy h<,r~~in or by law or quity provided or
pc-rmitteca; but r c,ch shall be, cumulat:iv, of c_very cthe r
right or Turnedy given hereunder or now or i~c~raaftear
,existing at law or in equity cr by statue or othorceis•°,
ana :nay be cnfcrc,d concurrE-'ntly therecaith or from time,
t O t. l :n C. .
idonwaivc~r
14.05 ']o covenant or condition cf this Lease ,lay be
waived except: by writt<-n consent of the Le^ssur and
Less.:,. Porbe.asz.nce or indulgency by the. Lessor in any
rcg.rd v::rat_soaver shall not. constitute. a v~aiv~r of the
covenant or conaition to be. performed by ttr~ Lt-sset to
which the sr,m~~ :nay apply, ana until complete pmrfonnance
by the Lessaa of ~:ny covenant or condition, the Lessor'
shall be e~ntitl.ed to invoke any rem;~ciy t,v:ailabl~~~~ t.c the
cent cr condition, the Lessor shall be untitled to invor;e
any ramccy a~-aiiablr- to the Lessor und~_r ti~i.s LeasE or
by la'..; or in cpuity :;espitc said forbearance or
indulgence.
pagE~-6
Ent.irc~ Ayrcement
14.04 ,'his Lea3se constitutes the _ntir~ agr:ee.ment.
betwc:cn the Lessor and the L~sse•e and supercedcs ~::ny
prior. unc:erstandiny or earitte:n or oral. :jgreements
betw,~e:n the parties respcctiny th.^ orithin subject
matter, It shall not be amended, altered, or. chunged
xccpt by a written ayr::•~_ment sirn.d by the parties
herc;to.
Notices
14.p5 ,ervice of oll notices un~er this Lerasre shell be
sufficiirr,t: if give-~n personally or mailc.•d to the party
involved at its respective address hereinabove set
forth, or rzt such adc:ress as such party may provide ir,
writing from timE, to time.. Any such notice mailed tc
such adcaress shall be e-ffcetive when iieposited ir. the
United Stags mail, truly addressed, :nd with post.~gc
pr_p:~id.
Gender; Plumber
14.06 tdhenevcrr they context of this Lease requires, the
m._:scu ine y~nr3er includes the fa:mininc or neuter and tk~e:
sinyular number includes the plural. whenever the caord
"Le:ssor" is used herein, it mall include all ~ssignec.s
of th•: Lessor. If thcr.e is more than one Lessee nme.d
in this Lc~asc, the l.iabitity of each shall be joint and
several.
Tlm<<
74.07 `I'lm~ is of the essence in this Lt^as~_ anci in each
and X11 of its previsions.
Texas La~~~ to Apply
14.Ofi 't`his Lease shall be construed -under ana in
accord::nce with the lass of the ::tate_ of T~xe,s, Uniform
Commercial Coda Sal=:s and S<:cure-d `1'ranssctions, end all
ouligatior.s of the parties crc.at_-d h: r=;under ~.re;
aeerformabl~ in K~=rr County, Tnxas.
Part.i~..s l;our:d
14.09 This Lease shall bEa binding upon and inure to the
bcn~fit of t'rre parties hereto and their respective
heirs, exeacutors, administrators, loyal representativea,
successors .and assigns where p_rmitte;d by this Lease.
L~gai Construction
14.10 If any cne or more of the previsions container; in
the L:_~se shall for any ray-:;son be held to b~-~. invaliu,
illegal, or uner;forccablc= in any r~=sped, such
in~ialiciity, illcg~~l ity, or unc•nfcrceabi l ity shaall not
effect ~.nd other provisions thr:reof ,and this Lease steal:
be. construed as if su:_h in.valia, illegal, or
un<~nforcc able- provision i~ad never contain~c; t:ercin.
Prior Ciders
14.1:1 `Ihe terms and conditions of this LL~ase sha11
prcv:.il not. withstanding any variance erith the tcr:ns and
conditions cf ;ny purchase order submitted by the
L-:S5E. ec.
page-7
Go~'err,mcnt Contraci.s
14.12 'Ih~ Lessor will comply with all provisions
rcquir~d to be insc:rt_,-: in the L~ ssee~'s purchase orders
in accordance with thin tc_r;rs of ar.y appiir_able 1'e:derat
St.+tue.
Patent Infringement
14.1 Tile. Less~;e shall mold thE~ Lessor harmless against
any :xpense or loss rersulting from infringement of
patr_nts or tradea:narks arising from Lessor's independent
t;cts, or. from ccnpliance with the Le-ssee's request,-:'.
d<sign or specifications or instructions.
Prompt Payment
14.14 Lessor shall. bey entitled to prompt payment of all
suns due hereund~_r without limiting Lessor's other
rights and remedies for any failure of the Lesser to
mab:e prompt paymt,nt, when paymcr.t is not made: as
scheduled. Lessor shall be entitled to charge and bill
the Lesse~er an inte>rest fee of thF_ unpaid balance per
:nonth. ':he: Lessee shall promptly pay all such interest,
fE:'~'Sr gnu cost when billed, In adaition, G:ssee shall
pay all collection and reasonable attorney's fees
im:olvcci in colle<_tir,g ~;ny acf-r.clted or late payment.
r^.HTICLY: 15. ''~JAF:RAN':'Y
Dl,iture of 4Jarratity
15.01 Lessor warrants title to the equipment being
lease-d in Exhibit A and also warrants such goods :and
materials in Exhibit F: *.o bi: the kind .and quality
d«-scrib~,u hvrin, ;nerchantable, anc frca~ of def:;cts in
workmanship at.d material. Lessor also warrants that its
pcrfor:me:nce of the installation of the goods and
materials in Exhibit A to be of the.- b;inu and quality
dcscriDC-d her~:in, merchant.ab].v, ~+nd frEE of uc~fects in
workmanship and that the materials in Exhibit A shall
r~:flE:ct the stanekards of good installation practicces.
Pao Other 6larranty
15. C'2 EX::EP'1' rCi2 I'kIE PEF,FCR:RAtiCE bdARRrPJYY IN 1.5.01,
THIS F'7ARRAiQTY IS S[J LIEU CF ALL CTIiER S•J?1RRP,N1`IES,
I[aCLUDI[!G IiU".' ,aOT LI:•1L'iED TC i.°1PL lED WARRP.[vi'IES CP
I~IERCHAN`PABILI'PY AND }?'iTNESu FOR AtdY PARTICULAR PURPOSE,
APJD CC[;:;TITUTES THE OPdLY bJl«RRArJTY CF LESSOR VdITH RESPECT
TO THE EQUIP:9Etd'P IN SXHIBI''P "A".
~lotification and Compliance
15.0:; If within th~• period of cnc ye. .ar from the dat. c:
of thE, installation of her •._quipment in f;xi~ibit A,
Lessees discov~_~rs that uny item in ]?;xhibit A ~,7a5 not
installeu as ~aarrante-d in 15.01, he shall promptly
notify the Lessor in writing thcrerof, and Lesser shall
remedy such nonconformance by, at Lessor's option,
adjustmr,nt or rr:pair or r«;placcmr=nt of tha:~ item cr any
affe:cte;d part of thy: equipment in hx.hibit "A", cahich
shall bc- Gc_ssor's sole obligation hereunder.
Expiration ~atc
15.04 The warranties giv~:n in 15.01 shall cease
cntir~.:ly and no tia:,rranti~s of e;ny kind sha1J be in
existanoe after one year following thE: installation of
tine. equipment in Exhibit =..
page-8
NO Con SEC7UF^tl:ul D3lllagcS
15.05 IN NO EVENT SHALL THE LESSOR OR TTS GUPPLIERS 3E
Li3e^LE, iuHLTEIER ii1 C0:ITRAC'1' OR IN PORT' GR AisiY G`i'HER	
L~GAL THEORY, FGR LO55 OF' UCE, REVENUE VR PR0FI`I5,
FOR COSTS QE' Cr,Pl'I'AL OR OF SUt3;'I'1T0`I'F. USE CR	OR
PERFOR[fANCE, OR FOR INCIDENTAL, P.+IDIRECT, SPECIAL,
CONSEQUF,?]TIe1L DAPIAGES, OR FOR P.NY v'PHER LOSE FOR QR
OF STr1ILAR TYPE, OR FUR CLAI?~tf~ 2Y LESSEE FOId DAMAC;F;	OP.
COST
S CF
LEGS{; L' OR Lf's;~SEE'S '~USTClhSk;S ARISING OUi' OF TIIE USE	OF
TktE LEASED EQUIPMENT Ok I3Y R{]ASON OF TE{E FAILURE CF	SUCff
EQUIP:fEfdT, OR FR0i9 AtJY GTHER CAUSE zIlih^IROEVEI?.	
Liket•:is~, Lc-ssor shall not, unuer c,ny circu.r~stances	be
liable for ,ycts of god, =,cts of govornm~ntal bodies	cr
ayancies, or for the. fault, neyligencc, or wronyful	
+cts of the Lc ssa,~:, Less. f 's employers, or L ,sec's
othfr contractors or suppliers.	
Agre::~d tc this ~_ day of
f>Y:
`P I'PLb::
\. 1(l
~~rl~~ 19~.
~Y:C.~ ~ CG
'vdilli m C. ;9atth~:cas
c~~-L
TITLE' j~_
EXHIu1T "~?"
CUT0MEI2: Distriit Judge's Office
Ai~DRESS: Kc-~-rr County Ccurt Hcusc'
Kerrville,':x 7£;023
SYS'PE'f: :'7odke.y 16 5x3 JOIi NO•U2i3-0353
CP.~Pl1iiLY LEASI: PIeY!7E'':T: $ 37.OU
(First ani{ last months psyment in e;d~.-:nee) ~ 74.00
TA\: ~ .00 'I'CTAL: Y 74.00
I'Ef2M: 12 Months (*R.:anew~;l of contract for 4 consecutive
years)
beginniny_ a~ ~~ cnc;iny ~ ~~ •q,
i;ay,__a
ItiS`i'?SLLATIOId: Comp Latrs EQUIPt1~.^7i' Tnscsll:tior, is
includF~4i in th_ .Ibov~ ~luoce~:J l~asa~ p<ly:neni-. ~ervicc
crl.,ry~s ier ie;st.;1l~.tiun ~;i co]~uhon<_~ ~_rvice dines)
dill b~~ h~,nulc~d s~ ~urat~ ly ay Ke=rrvill~, 'I'ei~: phcn
Cumt;an.y.
`?CSRVICE: Service ana maint~=,~n.~nce is incluuec in the
quotsd lease p~xym~-nt for the easrrc.nty oeriod of one'
ye..r following instsllstion oi: the ~,quipm.,nt as
~,i itSCClbe[~ 1^ 1.7.1)4 aJOC~..
Options avaiable at end of le<,se period.
1. Continue l~.ase or. .. month-to-month i~asc: at th<.
prevailing monthly rates.
2, RL CI E"W trl t' ie.aSc. fOr <i f1Xld per 104 ut a Yc1 t~_' lO~7E.r
than the pre-vailing rate.
~. Purci~ase the <=cuipa~ent at Fair °i.irket Value..
4. hie turn Syster-n
~z^QUIY:1~^,NT ::U;~MAFtY
1 Each C9odkcy 16 KFy S~rvic~~~ Unit
1 Each C 0 Cnru (4jGn)
~ ,-
., Each Elanusfreee ~pc.~,ka=r Yitonc.
1 t:.c.Ch .riU rCjE PCOte.C tC1r
1 Each Lot and Hardwr:ro
pay.-1U

Ai,7ll Z'f~ DTSTRTCP ~Zi~;
Fi1c~1 July 20, 1992
t