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Exhibit 10.18
[ BancBoston Leasing Logo ]
MASTER LEASE FINANCE AGREEMENT
This MASTER LEASE FINANCE AGREEMENT, dated as of the 20th day of February,
1998, ("Lease Agreement") is made at Boston, Massachusetts by and between
BancBoston Leasing Inc. ("LESSOR"), a Massachusetts corporation with its
principal place of business at ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
and Integrated Information Systems, Inc. ("Lessee"), a Arizona corporation with
its principal place of business at ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇,
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IN CONSIDERATION OF the mutual promises and covenants contained herein,
Lessor and Lessee hereby agree as follows:
1. Property Leased. At the request of Lessee and subject to the terms and
conditions of this Lease Agreement, Lessor shall lease to Lessee and Lessee
shall lease from Lessor such personal property ("Equipment") as may be mutually
agreed upon by Lessor and Lessee. The Equipment shall be selected by or ordered
at the request of Lessee, identified in one or more equipment schedules
substantially in the form of Exhibit A attached hereto ("Equipment Schedule")
and accepted by Lessee in one or more certificates of acceptance ("Certificate
of Acceptance") in the form of Exhibit B attached hereto. Each Equipment
Schedule executed by Lessor and Lessee and each Certificate of Acceptance
executed by Lessee shall constitute a part of this Lease Agreement.
2. Certain Definitions.
2.1 The "Commencement Date" shall mean the date on which the Equipment
identified in the applicable Equipment Schedule is accepted by Lessee under
this Lease Agreement. Each Commencement Date shall be evidenced by the
Certificate of Acceptance applicable to such Equipment Schedule.
2.2 The "Rent Start Date" shall mean either (i) the first day of the month
following the month in which the Commencement Date occurs or (ii) the
Commencement Date, if the Commencement Date occurs on the first day of the
month.
2.3 The "Monthly Rent" shall mean the amount set forth in the applicable
Equipment Schedule as Monthly Rent for the Equipment identified on such
Equipment Schedule.
2.4 The "Daily Rent" shall mean one-thirtieth (1/30) of the Monthly Rent.
2.5 The words "herein", "hereof", and "hereunder" shall refer to this
Lease Agreement as a whole and not to any particular section. All other
capitalized terms defined in this Lease Agreement shall have the meanings
assigned thereto.
3. Term of Lease; Payment of Rent.
3.1 The term of lease for the Equipment ("Lease Term") shall begin on the
Commencement Date set forth in the applicable Certificate of Acceptance and
shall continue during and until the expiration of the number of full calendar
months set forth in the applicable Equipment Schedule, measured from the Rent
Start Date. The Lease Term may not be cancelled or terminated expect as set
forth in Section 10.2 below.
3.2 Aggregate Daily Rent shall be due and payable by Lessee on the Rent
Start Date in an amount equal to the Daily Rent multiplied by the actual number
of days elapsed from, and including, the Commencement Date to, but excluding,
the Rent Start Date. The Monthly Rent shall be due and payable on the Rent Start
Date and, thereafter on the first day of each month of the Lease Term. All
Daily Rents and Monthly Rents shall be paid to Lessor at its office in Boston,
Massachusetts.
4. Acceptance of Equipment; Exclusion of Warranties.
4.1 Lessee shall signify its acceptance of the Equipment identified in the
applicable Equipment Schedule by promptly executing and delivering to Lessor a
Certificate of Acceptance. Lessee acknowledges that its execution and delivery
of the Certificate of Acceptance shall conclusively establish, as between
Lessor and Lessee, that the Equipment has been inspected by Lessee, is in good
repair and working order, is of the design, manufacture and capacity selected
by Lessee, and is accepted by Lessee under this Lease Agreement.
4.2 In the event the Equipment is ordered by Lessor from a manufacturer or
supplier at the request of Lessee, Lessor shall not be required to pay the
purchase price for such Equipment unless and until the applicable Certificate
of Acceptance has been received by Lessor. Lessee hereby agrees to indemnify,
defend and hold Lessor harmless from any liability to any manufacturer or
supplier arising from the failure of Lessee to lease any Equipment which is
ordered by Lessor at the request of Lessee or for which Lessor has assumed an
obligation to purchase.
4.3 Lessor leases the Equipment to Lessee and Lessee leases the Equipment
from Lessor "AS IS" and "WITH ALL FAULTS". Lessee hereby acknowledges that (i)
Lessor is not a manufacturer, supplier or dealer of such Equipment nor an agent
thereof; and (ii) LESSOR HAS NOT MADE, DOES NOT MAKE, AND HEREBY DISCLAIMS ANY
REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE
EQUIPMENT INCLUDING, BUT NOT LIMITED TO, ITS DESIGN, CAPACITY, CONDITION,
MERCHANTABILITY, OR FITNESS FOR USE OR FOR ANY PARTICULAR PURPOSE.
Lessee further acknowledges that Lessor is not responsible for any repairs,
maintenance, service, latent or other defects in the Equipment or in the
operation thereof, or for compliance of any Equipment with requirements of any
laws, ordinances, governmental rules or regulations including, but not limited
to, laws with respect to environmental matters, patent, trademark, copyright or
trade secret infringement, or for any direct or consequential damages arising
out of the use of or inability to use the Equipment.
4.4 Provided no Event of Default, as defined in Section 15 below, has
occurred and is continuing, Lessor agrees to cooperate with Lessee, at
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the sole cost and expense of lessee, in making any claim against a manufacturer
or supplier of the Equipment arising from a defect in such Equipment. At the
request of Lessee, Lessor shall assign to Lessee all warranties on the
Equipment available from any manufacturer or supplier to the full extent
permitted by the terms of such warranties and by applicable law.
5. Ownership; Inspection; Maintenance and Use.
5.1 Title to the Equipment shall at all times be in the name of Lessor. Any
Equipment subject to titling and registration laws shall be titled and
registered by Lessee on behalf of and in the name of Lessor at the sole cost and
expense of Lessee. Lessee shall cooperate with and provide Lessor with any
information or documents necessary for titling and registration of the
Equipment. Upon the request of Lessor, Lessee shall execute any documents or
instruments which may be necessary or appropriate to confirm, to record or to
give notice of the interest of Lessor in the Equipment including, but not
limited to, financing statements under the Uniform Commercial Code. Lessee, at
the request of Lessor, shall affix to the Equipment, in a conspicuous place, any
label, plaque or other insignia supplied by Lessor designating the interest of
Lessor in the Equipment.
5.2 The Equipment shall be located at the address specified in the
applicable Equipment Schedule and shall not be removed therefrom without the
prior written consent of Lessor. Lessor, its agents or employees shall have the
right to enter the premises of Lessee, upon reasonable notice and during normal
business hours, for the purpose of inspecting the Equipment.
5.3 Lessee shall pay all costs, expenses, fees and charges whatsoever
incurred in connection with the use and operation of the Equipment. Lessee
shall, at all times and at its own expense, keep the Equipment in good repair
and working order, reasonable wear and tear excepted. Any maintenance contract
required by a manufacturer or supplier for the care and upkeep of the Equipment
shall be entered into by Lessee at its sole cost and expense. Lessee shall
permit the use and operation of the Equipment only by personnel authorized by
Lessee and shall comply with all laws, ordinances or governmental rules and
regulations relating to the use and operation of the Equipment.
6. Alterations and Modifications. Lessee may make, or cause to be made on
its behalf, any improvement, modification or addition to the Equipment,
provided, however, that such improvement, modification or addition is readily
removable without causing damage to or impairment of the functional
effectiveness of the Equipment. To the extent that such improvement,
modification or addition is not so removable, it shall immediately become the
property of Lessor and thereupon shall be considered Equipment for all purposes
of this Lease Agreement.
7. Equipment Use; No Defense, Set-Offs or Counterclaims.
7.1 Provided no Event of Default, as defined in Section 15 below, has
occurred and is continuing, Lessee shall have the use of the Equipment in the
ordinary course of its business during the Lease Term without interruption by
Lessor or any person or entity claiming through or under Lessor.
7.2 Lessee acknowledges and agrees that ANY DAMAGE TO OR LOSS,
DESTRUCTION, OR UNFITNESS OF, OR DEFECT IN THE EQUIPMENT, OR THE INABILITY OF
LESSEE TO USE THE EQUIPMENT FOR ANY REASON WHATSOEVER, SHALL NOT (i) GIVE RISE
TO ANY DEFENSE, COUNTERCLAIM, OR RIGHT OF SET-OFF AGAINST LESSOR, OR (ii)
PERMIT ANY ABATEMENT OR RECOUPMENT OF, OR REDUCTION IN DAILY OR MONTHLY RENT,
OR (iii) RELIEVE LESSEE OF THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS LEASE
AGREEMENT INCLUDING, BUT NOT LIMITED TO, ITS OBLIGATION TO PAY THE FULL AMOUNT
OF DAILY RENT AND MONTHLY RENT, WHICH OBLIGATIONS ARE ABSOLUTE AND
UNCONDITIONAL, unless and until this Lease Agreement is terminated with respect
to such Equipment in accordance with the provisions of Section 10.2 below. Any
claim that Lessee may have which arises from a defect in or deficiency of the
Equipment shall be brought solely against the manufacturer or supplier of the
Equipment and Lessee shall, notwithstanding any such claim, continue to pay
Lessor all amounts due and to become due under this Lease Agreement.
8. Adverse Claims and Interests.
8.1 Except for any liens, claims, mortgages, pledges, encumbrances or
security interests created by Lessor, Lessee shall keep the Equipment, at all
times, free and clear from all liens, claims, mortgages, pledges, encumbrances
and security interests and from all levies, seizures and attachments. Without
limitation of the covenants and obligations of Lessee set forth in the preceding
sentence, Lessee shall immediately notify Lessor in writing of the imposition of
any prohibited lien, claim, levy or attachment on or seizure of the Equipment at
which time Lessee shall provide Lessor with all relevant information in
connection therewith.
8.2 Lessee agrees that the equipment shall be and at all times shall
remain personal property. Accordingly, Lessee shall take such steps as may be
necessary to prevent any person from acquiring, having or retaining any rights
in or to the Equipment by reason of its being affixed or attached to real
property.
9. Indemnities; Payment of Taxes.
9.1 Lessee hereby agrees to indemnify, defend and hold harmless Lessor, its
agents, employees, successors and assigns from and against any and all claims,
actions, suits, proceedings, costs, expenses, damages and liabilities
whatsoever arising out of or in connection with the manufacture, ordering,
selection, specifications, availability, delivery, titling, registration,
rejection, installation, possession, maintenance, ownership, use, leasing,
operation or return of the Equipment including, but not limited to, any claim
or demand based upon any STRICT OR ABSOLUTE LIABILITY IN TORT and upon any
infringement or alleged infringement of any patent, trademark, trade secret,
license, copyright or otherwise. All costs and expenses incurred by Lessor in
connection with any of the foregoing including, but not limited to, reasonable
legal fees, shall be paid by Lessee on demand.
9.2 Lessee hereby agrees to indemnify, defend and hold Lessor harmless
against all Federal, state and local taxes, assessments, licenses, withholdings,
levies, imposts, duties, assessments, excise taxes, registration fees and other
governmental fees and charges whatsoever, which are imposed, assessed or levied
on or with respect to the Equipment or its use or related in any way to this
Lease Agreement ("Tax Assessments"), except for taxes on or measured by the net
income of Lessor determined substantially in the same manner as under the
Internal Revenue Code of 1986, as amended. Lessee shall file all returns,
reports or other documents required in connection with the Tax Assessments and
shall provide Lessor with copies thereof. If, under local law or custom, Lessee
is not authorized to make the filings required by a taxing authority, Lessee
shall notify Lessor in writing and Lessor shall thereupon undertake to file such
returns, reports or documents. Without limiting any of the foregoing, Lessee
shall indemnify, defend and hold Lessor harmless from all penalties, fines,
interest payments, claims and expenses including, but not limited to, reasonable
legal fees, arising from any failure of Lessee to comply with the requirements
of this Section 9.2.
9.3 The obligations and indemnities of Lessee under this Section 9 for
events occurring or arising during the Lease Term shall continue in full force
and effect, notwithstanding the expiration or other termination of this Lease
Agreement.
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10. Risk of Loss; Loss of Equipment.
10.1 Lessee hereby assumes and shall bear the entire risk of loss for
theft, damage, seizure, condemnation, destruction or other injury whatsoever to
the Equipment from any and every cause whatsoever unless caused by Lessor's
gross negligence or willful misconduct. Such risk of loss shall be deemed to
have been assumed by Lessee from and after such risk passes from the
manufacturer or supplier by agreement or pursuant to applicable law.
10.2 In the event of any loss, seizure, condemnation or destruction of
the Equipment or damage to the Equipment which cannot be repaired by Lessee,
Lessee shall immediately notify Lessor in writing. Within thirty (30) days of
such notice, during which time Lessee shall continue to pay Monthly Rent, Lessee
shall, at the option of Lessor, either (i) replace the Equipment with equipment
of the same type and manufacture and in good repair, condition and working
order, transfer title to such equipment to Lessor free and clear of all liens,
claims and encumbrances, whereupon such equipment shall be deemed Equipment for
all purposes of this Lease Agreement, or (ii) pay to Lessor an amount equal to
the present value of the aggregate of the remaining unpaid Monthly Rents plus
any other costs actually incurred by Lessor. The present value shall be
determined by discounting the aggregate of the remaining unpaid Monthly Rents to
the date of payment by Lessee at the implied interest rate. Any insurance or
condemnation proceeds received by Lessor shall be credited to the obligation of
Lessee under this Section 10.2 and the remainder of such proceeds, if any, shall
be paid to Lessee by Lessor in full compensation for the loss of the leasehold
interest in the Equipment by Lessee.
10.3 Upon any replacement of or payment for the Equipment as provided
in Section 10.2 above, this Lease Agreement shall terminate only with respect to
the Equipment so replaced or paid for, and Lessor shall transfer to Lessee title
only to such Equipment "AS IS", "WITH ALL FAULTS", and WITH NO WARRANTIES
WHATSOEVER, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR USE OR FOR ANY PARTICULAR PURPOSE.
Lessee shall pay any sales or use taxes due on such transfer.
11. Insurance
11.1 Lessee shall keep the Equipment insured against all risks of loss
or damage from every cause whatsoever occurring during the Lease Term, for an
amount not less than the higher of the full replacement value of the Equipment
or the aggregate of unpaid Daily Rent and Monthly Rent for the balance of the
Lease Term. Lessee shall also carry public liability insurance, both personal
injury and property damage, covering the Equipment, and Lessee shall be liable
for any deductible portions of all required insurance.
11.2 All insurance required under this Section 11 shall name Lessor
as additional insured and loss payee. Such insurance shall also be with such
insurers and shall be in such forms and amounts as are satisfactory to Lessor.
All applicable policies shall provide that no act, omission or breach of
warranty by Lessee shall give rise to any defense against payment of the
insurance proceeds to Lessor. Lessee shall pay the premiums for such insurance
and, at the request of Lessor, deliver to Lessor duplicates of such policies or
other evidence satisfactory to Lessor of such insurance coverage. In any event,
Lessee shall provide Lessor with endorsements upon the policies issued by the
insurers which evidence the existence of insurance coverage required by this
Section 11 and by which the insurers agree to give Lessor written notice at
least twenty (20) days prior to the effective date of any expiration,
modification, reduction, termination or cancellation of any such policies.
11.3 The proceeds of insurance required under this Section 11 and
payable as a result of loss or damage to the Equipment shall be applied as set
forth in Section 10.2 above. Upon the occurrence of an Event of Default as
defined in Section 15 below, Lessee hereby irrevocably appoints Lessor as its
attorney-in-fact, which power shall be deemed coupled with an interest, to make
claim for, receive payment of, execute and endorse all documents, checks or
drafts received in payment for loss or damage under any insurance policies
required by this Section 11.
11.4 Notwithstanding anything herein, Lessor shall not be under any
duty to examine any evidence of insurance furnished hereunder, or to ascertain
the existence of any policy or coverage, or to advise Lessee or any failure to
comply with the provisions of this Section 11.
12. Surrender to Lessee. Upon the expiration of the Lease Term and
provided that no Event of Default, as defined in Section 15 below, has occurred
and is continuing, Lessor shall transfer title to the Equipment to Lessee "AS
IS", "WITH ALL FAULTS", and WITH NO WARRANTIES WHATSOEVER, EITHER EXPRESS OR
IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR USE OR FOR PARTICULAR PURPOSE.
13. Financial Statements. Lessee shall annually, within ninety (90)
days after the close of the fiscal year for Lessee, furnish to Lessor financial
statements of Lessee, including a balance sheet as of the close of such year and
statements of income and retained earnings for such year, prepared in accordance
with generally accepted accounting principles, consistently applied from year to
year, and audited by independent public accountants for Lessee. If requested by
Lessor, Lessee shall also provide quarterly financial statements of Lessee,
similarly prepared for each of the first three quarters of each fiscal year,
certified (subject to normal year-end audit adjustments) by the chief financial
officer of Lessee and furnished to Lessor within sixty (60) days following the
end of the quarter, and such other financial information as may be reasonably
requested by Lessor.
14. Delayed Payment Charge. Lessee shall pay to Lessor interest upon
the amount of any Daily Rent, Monthly Rent or other sums not paid by Lessee when
due and owing under this Lease Agreement, from the due date thereof until paid,
at the rate of one and one half (1-1/2) percent per month, but if such rate
violates applicable law, then the maximum rate of interest allowed by such law.
15. Default.
15.1 The occurrence of any of the following events shall constitute an
event of default ("Event of Default") under this Lease Agreement.
(a) Lessee fails to pay any Daily Rent or any Monthly Rent when
due and such failure to pay continues for ten (10) consecutive days; or
(b) Lessee fails to pay any other sum required hereunder, and
such failure continues for a period of ten (10) days following written notice
from Lessor; or
(c) Lessee fails to maintain the insurance as required by
Section 11 above and such failure continues for ten (10) days after written
notice from Lessor; or
(d) Lessee violates or fails to perform any other term,
covenant or condition of this Lease Agreement or any other document, agreement
or instrument executed pursuant hereto or in connection herewith, which failure
is not cured within thirty (30) days after written notice from Lessor; or
(e) Lessee ceases to exist or terminates its independent
operations by reason of any discontinuance, dissolution, liquidation, merger,
sale of substantially all of its assets, or otherwise ceases doing business as
a going concern; or
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(f) Lessee (i) applies for or consents to the appointment of, or the
taking of possession by, a receiver, custodian, trustee, liquidator or
similar official for itself or for all or a substantial part of its
property, (ii) is generally not paying its debts as such debts become
due, (iii) makes a general assignment for the benefit of its creditors,
(iv) commences a voluntary case under the United States Bankruptcy Code, as
now or hereafter in effect, seeking liquidation, reorganization or other
relief with respect to itself or its debts, (v) files a petition seeking
to take advantage of any other law providing for the relief of debtors,
(vi) takes any action under the laws of its jurisdiction of incorporation
or organization similar to any of the foregoing, or (vii) takes any
corporate action for the purpose of effecting any of the foregoing; or
(g) A proceeding or case is commenced, without the application or
consent of Lessee, in any court of competent jurisdiction, seeking (i) the
liquidation, reorganization, dissolution, winding up of Lessee or
composition or readjustment of the debts of Lessee, (ii) the appointment
of a trustee, receiver, custodian, liquidator or similar official for
Lessee or for all or any substantial part of its assets, or (iii) similar
relief with respect to Lessee, under any law providing for the relief of
debtors; or an order for relief is entered with respect to Lessee in an
involuntary case under the United States Bankruptcy Code, as now or
hereafter in effect; or an action under the laws of the jurisdiction of
incorporation or organization of Lessee, similar to any of the foregoing,
is taken with respect to Lessee without its application or consent; or
(h) Lessee makes any representation or warranty herein or in any
statement or certificate at any time given in writing pursuant to or in
connection with this Lease Agreement, which is false or misleading in any
material respect; or
(i) Lessee defaults under any promissory note, credit agreement, loan
agreement, conditional sales contract, guaranty, lease, indenture, bond,
debenture or other material obligation whatsoever, and a party thereto or
a holder thereof is entitled to accelerate the obligations of Lessee
thereunder; or Lessee defaults in meeting any of its trade, tax or other
current obligations as they mature, unless such obligations are being
contested diligently and in good faith; or
(j) Any party to any guaranty, letter of credit, subordination or
credit agreement or other undertaking, given for the benefit of Lessor and
obtained in connection with this Lease Agreement, breaches, fails to
continue, contests, or purports to terminate or to disclaim such guaranty,
letter of credit, subordination or credit agreement or other undertaking;
or such guaranty, letter of credit, subordination agreement or other
undertaking becomes unenforceable; or a guarantor of this Lease Agreement
shall die, cease to exist or terminate its independent operations.
15.2 No waiver by Lessor of any Event of Default shall constitute a waiver
of any other Event of Default or of the same Event of Default at any other time.
16. Remedies.
16.1 Upon the occurrence of an Event of Default and while such Event of
Default is continuing, Lessor, at its sole option, upon its declaration, and to
the extent not inconsistent with applicable law, may exercise any one or more
of the following remedies:
(a) Lessor may terminate this Lease Agreement whereupon all rights of
Lessee to the use of the Equipment shall cease;
(b) Whether or not this Lease Agreement is terminated, Lessor may
cause Lessee, at the sole cost and expense of Lessee, to return any or all
of the Equipment promptly to the possession of Lessor in good repair and
working order, reasonable wear and tear excepted. Lessor, at its sole
option and through its employees, agents or contractors, may peaceably
enter upon the premises where the Equipment is located and take immediate
possession of and remove the Equipment, all without liability to Lessor,
its employees, agents or contractors for such entry. LESSEE HEREBY WAIVES,
TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS TO NOTICE
AND/OR HEARING PRIOR TO THE REPOSSESSION OR REPLEVIN OF THE EQUIPMENT BY
LESSOR, ITS EMPLOYEES, AGENTS OR CONTRACTORS;
(c) Lessor may proceed by court action to enforce performance by
Lessee of this Lease Agreement or pursue any other remedy Lessor may have
hereunder, at law, in equity or under any applicable statute including,
without limitation, the rights and remedies of a secured party under the
Uniform Commercial Code of The Commonwealth of Massachusetts or of any
other jurisdiction, and recover such other actual damages as may be
incurred by Lessor;
(d) Lessor may recover from Lessee damages, not as a penalty but as
liquidation for all purposes and without limitation of any other amounts
due from Lessee under this Lease Agreement, in an amount equal to the sum
of (i) any unpaid Daily Rents and/or Monthly Rents due and payable for
periods prior to the repossession of the Equipment by Lessor plus any
interest due thereon pursuant to Section 14 above, (ii) the present value
of all future Monthly Rents required to be paid over the remaining Lease
Term after repossession of the Equipment by Lessor determined by
discounting such future Monthly Rents to the date of payment by Lessee
at implied interest rate, and (iii) all costs and expenses incurred in
searching for, taking, removing, storing, repairing, restoring,
refurbishing and leasing or selling such Equipment; or
(e) Lessor may sell, lease or otherwise dispose of any or all of the
Equipment, whether or not in the possession of Lessor, at public or
private sale and with or without notice to Lessee, which notice is hereby
expressly waived by Lessee, to the extent permitted by and not
inconsistent with applicable law. Lessor may sell, lease or dispose of the
Equipment in such order and manner as Lessor may determine. Lessor shall
then apply against the obligations of Lessee hereunder the net proceeds of
such sale, lease or other disposition, after deducting all costs incurred
by Lessor in connection with such sale, lease or other disposition
including, but not limited to, costs of transportation, repossession,
storage, refurbishing, advertising or other fees and Lessee shall remain
liable for any deficiency. Lessor shall account for any excess of such
proceeds over the total obligations owed by Lessee, which excess shall be
immediately paid over to Lessee. Unless the Equipment threatens to decline
speedily in value or is of the type customarily sold on a recognized
market, Lessor shall give to Lessee at least five (5) days prior written
notice of the time and place of any public sale of the Equipment or of the
time after which any private sale or other disposition of the Equipment is
to be made.
16.2 No failure on the part of Lessor to exercise, and no delay in
exercising, any right or remedy hereunder shall operate as a waiver thereof. No
single or partial exercise of any right or remedy hereunder shall preclude any
other or further exercise thereof or the exercise of any other right or remedy.
Each right and remedy provided hereunder is cumulative and not exclusive of any
other right or remedy including, without limitation, any right or remedy
available to Lessor at law, by statute or in equity.
16.3 Lessee shall pay all costs and expenses including, but not limited
to, reasonable legal fees incurred by Lessor arising out of or in connection
with any Event of Default or this Lease Agreement. Lessee shall also be liable
for any amounts due and payable to Lessor under any other provision of this
Lease Agreement.
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17. Assignment; Sublease.
17.1 Lessor may sell, assign or otherwise transfer all or any part of its
right, title and interest in and to the Equipment and/or this Lease Agreement to
a third-party assignee, subject to the terms and conditions of this Lease
Agreement including, but not limited to, the right to the use of the Equipment
by Lessee as set forth in Section 7.1 above. Such assignee shall assume all of
the rights and obligations of Lessor under this Lease Agreement and shall
relieve Lessor therefrom. Thereafter, all references to Lessor herein shall mean
such assignee. Notwithstanding any such sale, assignment or transfer, the
obligations of Lessee hereunder shall remain absolute and unconditional as set
forth in Section 7.2 above.
17.2 Lessor may also, to the extent of its interest therein, pledge,
mortgage or grant a security interest in the Equipment and assign this Lease
Agreement as collateral. Each such pledgee, mortgagee, lienholder or assignee
shall have any and all rights as may be assigned by Lessor but none of the
obligations of Lessor hereunder. Any pledge, mortgage or grant of security
interest in the Equipment or assignment of this Lease Agreement shall be subject
to the terms and conditions hereof including, but not limited to, the right to
the use of the Equipment by Lessee as set forth in Section 7.1 above. Lessor, by
reason of such pledge, mortgage, grant of security interest or collateral
assignment, shall not be relieved of any of its obligations hereunder which
shall remain absolute and unconditional as set forth in Section 7.2 above. Upon
the written request of Lessor, Lessee shall acknowledge such obligations to the
pledgee, mortgagee, lienholder or assignee.
17.3 LESSEE SHALL NOT SELL, TRANSFER, ASSIGN, SUBLEASE, CONVEY OR PLEDGE
ANY OF ITS INTEREST IN THIS LEASE AGREEMENT OR ANY OF THE EQUIPMENT, WITHOUT THE
PRIOR WRITTEN CONSENT OF LESSOR. Any such sale, transfer, assignment, sublease,
conveyance or pledge, whether by operation of law or otherwise, without the
prior written consent of Lessor, shall be void.
18. Compliance and Approvals. Lessee warrants and agrees that this Lease
Agreement and the performance by Lessee of all of its obligations hereunder have
been duly authorized, do not and will not conflict with any provision of the
charter or bylaws of Lessee or of any agreement, indenture, lease or other
instrument to which Lessee is a party or by which Lessee or any of its property
is or may be bound. Lessee warrants and agrees that this Lease Agreement does
not and will not require any governmental authorization, approval, license or
consent except those which have been duly obtained and will remain in effect
during the entire Lease Term.
19. Miscellaneous.
19.1 The section headings are inserted herein for convenience of reference
and are not part of and shall not affect the meaning or interpretation of this
Lease Agreement.
19.2 Any provision of this Lease Agreement which is unenforceable in whole
or in part in any jurisdiction shall, as to such jurisdiction, be ineffective
only to the extent of such unenforceability without invalidating any remaining
part or other provision hereof and shall not be affected in any manner by reason
of such enforceability in any other jurisdiction. The validity and
interpretation of this Lease Agreement and the rights and obligations of the
parties hereto shall be governed in all respects by the laws of The Commonwealth
of Massachusetts without giving effect to the conflicts of laws provisions
thereof.
19.3 This Lease Agreement, including all Equipment Schedules and
Certificates of Acceptance, constitutes the entire agreement between Lessor and
Lessee. Lessor and Lessee agree that this Lease Agreement shall not be amended,
altered or changed except by a written agreement signed by the parties hereto.
LESSEE ACKNOWLEDGES THAT THERE HAVE BEEN NO REPRESENTATIONS, EXPRESS OR IMPLIED,
BY LESSOR OTHER THAN AS SET FORTH HEREIN AND LESSEE EXPRESSLY CONFIRMS THAT IT
HAS NOT RELIED UPON ANY REPRESENTATIONS BY LESSOR, EXCEPT THOSE SET FORTH
HEREIN, AS A BASIS FOR ENTERING INTO THIS LEASE AGREEMENT.
19.4 Any notice required to be given by Lessee or Lessor hereunder shall be
deemed adequately given if sent by registered or certified mail, return receipt
requested, to the other party at their respective addresses stated herein or at
such other place as either party may designate in writing to the other.
19.5 Lessee agrees to execute and deliver such additional documents and to
perform such further acts as may be reasonably requested by Lessor in order to
carry out and effectuate the purposes of this Lease Agreement. Upon the written
request of Lessor, Lessee further agrees to execute any instrument necessary for
filing or recording this Lease Agreement or to confirm the interest of Lessor in
the Equipment. Lessor is hereby authorized to insert in any Equipment Schedule
the serial numbers of the Equipment and other identifying marks or similar
information and to sign, on behalf of Lessee, any Uniform Commercial Code
financing statements.
19.6 This Lease Agreement cannot be cancelled or terminated except as
expressly provided herein.
19.7 Whenever the context of this Lease Agreement requires, the singular
includes the plural and the plural includes the singular. Whenever the word
Lessor is used herein, it includes all assignees and successors in interest of
Lessor. If more than one Lessee are named in this Lease Agreement, the liability
of each shall be joint and several.
19.8 All agreements, indemnities, representations and warranties of Lessee
made herein and all rights and remedies of Lessor shall survive the expiration
or other termination of this Lease Agreement, whether or not expressly provided
herein.
19.9 Any waiver of any power, right, remedy or privilege of Lessor
hereunder shall not be effective unless in writing signed by Lessor.
19.10 This Lease Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.
6
IN WITNESS WHEREOF, Lessor and Lessee, each by its duly authorized officer
or agent, have duly executed and delivered this Lease Agreement, which is
intended to take effect as a sealed instrument, as of the day and year first
written above.
Integrated Information Systems, Inc.
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By /s/ ▇▇▇ ▇▇▇▇▇▇
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Title CEO
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Accepted at Boston, Massachusetts
BANCBOSTON LEASING INC.
By /s/ Illegible
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Title ASSISTANT VICE PRESIDENT
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