Equipment Lease Agreement

EQUIPMENT LEASE AGREEMENT

Exhibit 10.1

 

EQUIPMENT LEASE AGREEMENT

 

This EQUIPMENT LEASE AGREEMENT (this “Agreement”) is entered into January 2, 2019 (the “Effective Date”), by and between Sheehy Enterprises, Inc., a Wisconsin corporation (the “Lessor”), and Sheehy Mail Contractors, Inc., a Wisconsin corporation (the “Lessee”). The Lessor and the Lessee may be referred to individually in this Agreement as a “Party” and collectively as the “Parties.”

 

RECITALS

 

A. Pursuant to that certain Acquisition Option Agreement dated September 5, 2018 (the “Option Agreement”), by and between EVO Transportation & Energy Services, Inc., a Delaware corporation (the “Buyer”), the Lessor, John Sheehy, and Robert Sheehy, the Buyer is purchasing all of the issued and outstanding equity interests of the Lessee.

 

B. Section 2.2(c)(ix) of the Option Agreement requires that the Lessor deliver to the Buyer a lease agreement between the Lessor and the Lessee, in form and substance acceptable to the Buyer and duly executed by the Lessor and the Lessee, whereby the Lessee will lease from the Lessor all trucks, trailers, and other vehicles used in the Lessee’s Business (as defined in the Option Agreement).

 

C. Capitalized terms not otherwise defined herein will have the same meanings as in the Option Agreement.

 

AGREEMENT

 

For good and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree to the following terms and conditions:

 

1. Equipment. The Lessor agrees to lease to the Lessee, and the Lessee agrees to lease from the Lessor, the equipment identified on Exhibit A attached hereto (the “Leased Equipment”) in accordance with the terms of this Agreement.

 

2. Lease Payments. Commencing on the Effective Date, the Lessee agrees to pay to the Lessor an amount equal to $91,667.00 per month (each, a “Lease Payment”) for 48 months (the “Lease Term”), unless earlier terminated in accordance with this Agreement. The first Lease Payment will be made on the Effective Date. Thereafter, Lease Payments during the Lease Term will be due on each subsequent monthly anniversary of the Effective Date.

 

3. Leased Equipment Use; Maintenance; Loss; Damage. The Lessee agrees to use the Leased Equipment in substantial compliance with all laws, rules, regulations, ordinances, statutes, and orders regarding the use, maintenance, and possession of the Leased Equipment. The Lessee will be responsible for obtaining applicable licensing and permits required for the Lessee’s use, maintenance, and possession of the Leased Equipment and any associated costs. The Lessee will be responsible for any repairs and maintenance necessary to keep the Leased Equipment in working order and repair as required by the Lessee during the Lease Term. The Lessee agrees to promptly report to the Lessor any loss of or material damage to the Leased Equipment.

 

 

 

  

4. Ownership of the Lessor. The Leased Equipment shall at all times be and remain the exclusive property of the Lessor.

 

5. Representations.

 

a. The Lessor and the Lessee each represent, warrant and covenant, respectively, that such Party has the full power, authority, and legal right to execute, deliver, and perform the terms of this Agreement, has the legal right to enter into this Agreement, and that this Agreement when executed by its representative signing this Agreement on its behalf is a valid and binding obligation on such Party.

 

b. The Lessor represents and warrants that it possesses good title to all of the Leased Equipment and that the Leased Equipment is not subject to any lien, charge, mortgage, security interest, claim, pledge, deposit, or other encumbrance (each, a “Lien”). During the Lease Term, the Lessor will not permit any Lien on any of the Leased Equipment and will not otherwise take any action, or permit any action to be taken, that interferes with the Lessee’s quiet use and enjoyment of the Leased Equipment.

 

6. Force Majeure. Each Party to this Agreement will be excused from its contractual obligations if it is prevented or delayed in such performance by any event which is unavoidable or beyond its reasonable control including acts of God, acts of public enemies, floods, rockslides, landslides, snowslides, washouts, avalanches, earthquake, expropriation, fire or explosion, strikes, lockouts, walkouts or other industrial disputes involving employees of either Party, war, sabotage, insurrection, derailment, labor shortages, power or fuel shortages, or the act or failure to act of any government or regulatory agency (each an event of “Force Majeure”). The Party affected by Force Majeure shall notify (with a sufficient description of the event) the other Party within five Business Days following the commencement of the Force Majeure event and shall also notify the other Party within five Business Days following the end of the Force Majeure. The Party affected will take all reasonable steps to remedy the event of Force Majeure; provided, however, that nothing contained in this Section 6 shall require any Party to settle any industrial dispute or to test any federal, provincial, or municipal law.

 

7. Notice. All notices, requests, demands and other communications required or permitted hereunder will be made in writing and will be deemed to have been duly given and effective: (a) on the date of delivery, if delivered personally; (b) on the first Business Day following the date of dispatch if delivered by a recognized next-day courier service; (c) on the earlier of the fourth (4th) day after mailing or the date of the return receipt acknowledgment, if mailed, postage prepaid, by certified or registered mail, return receipt requested; or (d) on the date of transmission, if sent by e-mail, facsimile, telecopy, telegraph, telex or other similar telegraphic communications equipment.

 

8. Governing Law; Jurisdiction; Waiver of Jury Trial. All issues and questions concerning the construction, validity, enforcement, and interpretation of this Agreement will be governed by the governing law, jurisdiction, waiver of jury trial, and other provisions set forth in Section 8.5 of the Option Agreement.

  

2

 

  

9. Cumulative Rights. The Lessor’s and the Lessee’s rights under this Agreement are cumulative and shall not be construed as exclusive unless otherwise required by law. The exercise of any rights and remedies by either Party shall not constitute a termination of this Agreement unless such Party so notifies the other Party in writing.

 

10. Waiver. The delay or failure of either Party to enforce any provisions of this Agreement shall not be deemed a waiver or limitation of that Party’s right to subsequently enforce and compel past, present, and future strict compliance with every provision of this Agreement.

 

11. Other Provisions. This Agreement constitutes the entire agreement between the Parties regarding the subject matter of this Agreement and supersedes any prior understanding or representation of any kind preceding the date of this Agreement. There are no other promises, conditions, understandings, or other agreements, whether oral or written, relating to the subject matter of this Agreement. This Agreement may only be modified in a writing signed by both the Lessor and the Lessee. This Agreement shall not be construed against either Party hereto since both Parties have had the opportunity to negotiate its provisions and contribute to its drafting. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. Copies of this Agreement with signatures transmitted electronically (e.g. by fax or .pdf) shall be deemed to be original signed versions of this Agreement. The obligations of the Parties which, by their nature, would continue beyond the termination or expiration of this Agreement will survive a termination of this Agreement.

 

[Signature Page Follows]

  

3

 

 

IN WITNESS WHEREOF, the Parties have executed this Equipment Lease Agreement as of the day and year first above written.

 

  LESSOR:
   
  SHEEHY ENTERPRISES, INC.
   
  /s/ John Sheehy
  By: John Sheehy
  Its: Chief Executive Officer
   
  LESSEE:
   
  EVO Transportation and Energy Services on behalf of:
   
  SHEEHY MAIL CONTRACTORS, INC.
   
  /s/ Damon Cuzick
  By: Damon Cuzick
  Its: Chief Executive Officer

 

[Signature Page to Equipment Lease Agreement]

  

 

 

  

EXHIBIT A

 

LEASED EQUIPMENT

 

Truck Number  Make & Year  VIN
248  2010 Ford  4V4NC9EH0CN551976
257  2012 Volvo  4V4NC9EH4CN551978
259  2012 Volvo  4V4NC9EH8CN551983
263  2012 Volvo  4V4NC9EH6CN551982
264  2012 Volvo  4V4NC9EHXCN551984
265  2012 Volvo  4V4NC9EH3CN551986
267  2012 Volvo  4V4NC9EH5CN551987
269ST  2013 Freightliner  1FVAC4DV3DHFA7493
271  2013 Volvo  4V4NC9EHXDN139839
272  2013 Volvo  4V4NC9EH6DN139840
276  2013 Volvo  4V4NC9EH3DN139844
277  2013 Freightliner  3AKJGEDV8DSFD9517
278  2013 Freightliner  3AKJGEDVXDSFD9518
279  2013 Freightliner  3AKJGEDV1DSFD9519
280  2013 Freightliner  3AKJGEDV0DSFE4484
281  2014 Freightliner  3AKJGEDV3ESFP9963
283  2014 Freightliner  3AKGJEDV7ESFP9965
284  2014 Freightliner  3AKJGEDV9ESFP9966
285  2014 Freightliner  1FUJGBD96ELFM6162
286  2014 Freightliner  1FUJGBD96ELFM6163
287  2014 Freightliner  1FUJGBD9XELFM6164
295  2014 Freightliner  1FUJGBD9XELFW4907

 

Trailer Number  Make  VIN
147001  2014 Stoughton  1DW1A5320ES524718
147002  2014 Stoughton  1DW1A5322ES524719
147003  2014 Stoughton  1DW1A5329ES524720
147004  2014 Stoughton  1DW1A5320ES524721
147005  2014 Stoughton  1DW1A5322ES524722
147006  2014 Stoughton  1DW1A5324ES524723
147007  2014 Stoughton  1DW1A5326ES524724
147008  2014 Stoughton  1DW1A5328ES524725
147009  2014 Stoughton  1DW1A532XES524726
147010  2014 Stoughton  1DW1A5321ES524727
147011  2014 Stoughton  1DW1A5323ES524728
147012  2014 Stoughton  1DW1A5325ES524729
147013  2014 Stoughton  1DW1A5323ES524730

 

A-1

 

 

147014  2014 Stoughton  1DW1A5323ES524731
147015  2014 Stoughton  1DW1A5323ES524732
147016  2014 Stoughton  1DW1A5323ES524733
147017  2014 Stoughton  1DW1A5323ES524734
147018  2014 Stoughton  1DW1A5323ES524735
147019  2014 Stoughton  1DW1A5323ES524736
147020  2014 Stoughton  1DW1A5323ES524737
500IH02  1998 Stoughton  1DW1A5320WS207524
5231H01  1998 Stoughton  1DW1A532XWS207563
5231H02  2002 Wabash  1JJV532W12L793831
CV670  1999 Utility  1UYTS2484XA793201
F669  1998 Utility  IUYFS2484WA633704
F673  2005 Stoughton  IUYFS24005A566401
SMC117  2004 Stoughton  1DW1A48214S673401
SMC118  2004 Stoughton  1DW1A48234S673402
SMC119  2004 Stoughton  1DW1A48254S673403
SMC120  2004 Stoughton  1DW1A48274S673404
SMC121  2004 Stoughton  1DW1A48294S673405
SMC122  2004 Stoughton  1DW1A48204S673406
SMC123  2004 Stoughton  1DW1A48224S673407
SMC124  2004 Stoughton  1DW1A48244S673408
SMC125  2004 Stoughton  1DW1A53274S685601
SMC126  2004 Stoughton  1DW1A53294S685602
SMC127  2004 Stoughton  1DW1A53204S685603
SMC128  2004 Stoughton  1DW1A53224S685604
SMC129  2004 Stoughton  1DW1A53224S691001
SMC130  2004 Stoughton  1DW1A53244S691002
SMC132  2004 Stoughton  1DW1A53284S691004
SMC134  2005 Stoughton  1DW1A53255S820902
SMC135  2005 Stoughton  1DW1A53275S820903
SMC136  2005 Stoughton  1DW1A53295S820904
SMC137  2006 Stoughton  1DW1A53206S888901
SMC138  2006 Stoughton  1DW1A53226S888902
SMC139  2006 Stoughton  1DW1A53246S888903
SMC140  2006 Stoughton  1DW1A53256S898601
SMC141  2006 Stoughton  1DW1A53276S898602
SMC142  2006 Stoughton  1DW1A53296S898603
SMC143  2006 Stoughton  1DW1A53206S898604
SMC144  2006 Stoughton  1DW1A53226S898605
SMC145  2006 Stoughton  1DW1A53246S898606
SMC146  2006 Stoughton  1DW1A53266S898607

 

A-2

 

 

SMC147  2006 Stoughton  1DW1A53286S898608
SMC148  2006 Stoughton  1DW1A532X6S898609
SMC149  2007 Stoughton  1DW1A53297S959501
SMC150  2007 Stoughton  1DW1A53207S959502
SMC151  2007 Stoughton  1DW1A53227S959503
SMC152  2007 Stoughton  1DW1A53247S959504
SMC153  2007 Stoughton  1DW1A53267S959505
SMC154  2007 Stoughton  1DW1A53287S959506
SMC155  2007 Stoughton  1DW1A532X7S959507
SMC156  2007 Stoughton  1DW1A53217S959508
SMC157  2007 Stoughton  1DW1A53237S959509
SMC158  2007 Stoughton  1DW1A532X7S959510
SMC159  2007 Stoughton  1DW1A53217S959511
SMC160  2007 Stoughton  1DW1A53237S959512
SMC161  2007 Stoughton  1DW1A53277S988401
SMC162  2007 Stoughton  1DW1A53297S988402
SMC163  2007 Stoughton  1DW1A53207S988403
SMC164  2007 Stoughton  1DW1A53227S988404
SMC165  2007 Stoughton  1DW1A53247S988405
SMC166  2007 Stoughton  1DW1A53267S988406
SMC167  2008 Stoughton  1UYVS25328P329111
SMC168  2008 Stoughton  1UYVS25328P329110
SMC169  2008 Stoughton  1UYVS25328P329112
SMC170  2009 Vanguard  SV8VA53219M902494
SMC171  2009 Vanguard  SV8VA53239M902495
SMC172  2009 Vanguard  SV8VA53259M902496
SMC173  2009 Vanguard  SV8VA53279M902497
SMC174  2009 Vanguard  SV8VA53259M902501
SMC175  2009 Stoughton  1DW1A53289S168203
SMC176  2009 Stoughton  1DW1A532X9S168204
SMC177  2009 Stoughton  1DW1A53219S168205
SMC178  2009 Stoughton  1DW1A53239S168206
SMC179  2009 Stoughton  1DW1A53259S168207
SMC180  2009 Stoughton  1DW1A53279S168208
SMC181  2009 Stoughton  1DW1A53299S168209
SMC182  2009 Stoughton  1DW1A53259S168210
SMC183  2009 Stoughton  1DW1A53219S150903
SMC184  2009 Stoughton  1DW1A53239S150904
SMC186  2009 Stoughton  1DW1A53279S150906
SMC187  2009 Stoughton  1DW1A53299S150907
SMC188  2009 Stoughton  1DW1A53209S150908

 

A-3

 

 

SMC189  2009 Stoughton  1DW1A53229S150909
SMC190  2009 Stoughton  1DW1A53299S150910
SMC191  2009 Stoughton  1DW1A53209S150911
SMC192  2009 Stoughton  1DW1A53229S150912
SMC193  2009 Stoughton  1DW1A53249S150913
SMC194  2009 Stoughton  1DW1A53269S150914
SMC195  2009 Stoughton  1DW1A53289S150915
SMC196  2009 Stoughton  1DW1A53249S118849
SMC197  2009 Utility  1UYVS2480DP617201
SMC701  2011 Stoughton  1UYVS2533BP103701
SMC702  2011Stoughton  1UYVS2535BP103702
SMC703  2011Stoughton  1UYVS2539BP103704
SMC704  2011Stoughton  1UYVS2538BP103709
SMC705  2011Stoughton  1UYVS2536BP103711
SMC706  2011Stoughton  1UYVS2538BP103712
SMC707  2011Stoughton  1UYVS253XBP103713
SMC708  2011Stoughton  1UYVS2530BP103705
SMC709  2011Stoughton  1DW1A5325BS258110
SMC710  2011Stoughton  1DW1A5327BS258111
SMC711  2011Stoughton  1DW1A5329BS258109
SMC712  2012 Stoughton  1DW1A5321CS295205
SMC713  2012 Stoughton  1DW1A5323CS295206
SMC714  2012 Stoughton  1DW1A5325CS295207
SMC715  2012 Stoughton  1DW1A5327CS295208
SMC716  2012 Stoughton  1DW1A5329CS295209
SMC717  2012 Stoughton  1DW1A5325CS295210
SMC718  2012 Stoughton  1DW1A5326CB338601
SMC719  2012 Stoughton  1DW1A5328CB338602
SMC720  2012 Stoughton  1DW1A532XCB338603
SMC721  2012 Stoughton  1DW1A5321CB338604
SMC722  2012 Stoughton  1DW1A5323CB338605
SMC723  2012 Stoughton  1DW1A5325CB338606
SMC724  2012 Utility  1UYVS2533DP549012
SMC725  2012 Utility  1UYVS2535DP549013
SMC726  2012 Utility  1UYVS2531DP549025
SMC727  2012 Utility  1UYVS2533DP549026
SMC728  2012 Utility  1UYVS2537DP549028
SMC729  2012 Utility  1UYVS2539DP549029
SMC730  2013 Utility  1UYVS2539DP603820
SMC731  2013 Utility  1UYVS2530DP603821
SMC732  2013 Utility  1UYVS2534DP603823
SMC733  2013 Utility  1UYVS2536DP603824
SMC734  2013 Utility  1UYVS2538DP603825

 

Property  Description 
230 Boden  MKE Shop   

 

A-4