Equipment Lease Agreement between A-Y-K-E Partnership and Affholder, Inc. for Lovat M-142 Tunnel Boring Machine

Summary

A-Y-K-E Partnership (Lessor) leases a Lovat M-142 Tunnel Boring Machine to Affholder, Inc. (Lessee) for use in Evansville, Indiana, from February 1, 2004, to December 31, 2004, for a lump sum of $100,000. Lessee must maintain, insure, and use the equipment only for the specified project, and cannot alter or sublease it without Lessor’s consent. Lessee is responsible for taxes, transportation, and indemnifying Lessor against claims. The agreement is governed by Missouri law and includes penalties for unauthorized retention beyond April 30, 2004.

EX-10.20 13 c83625exv10w20.txt EQUIP. LEASE FOR LOVAT M-142 TUNNEL BORING MACHINE EXHIBIT 10.20 EQUIPMENT LEASE THIS LEASE executed as of February 1, 2004, between A-Y-K-E Partnership, a partnership (hereafter referred to as "LESSOR"), and Affholder, Inc., a Missouri corporation (hereinafter referred to as "LESSEE"). 1. LESSOR leases to LESSEE, and LESSEE leases from LESSOR, one Lovat M-142 Tunnel Boring Machine, Series No. 6100. 2. The term of this Lease shall begin February 1, 2004 and shall end December 3l, 2004. If the leased property is retained by LESSEE after April 30, 2004 without the consent of LESSOR, then the liquidated damages shall be $25,000.00 plus $5050.00 per day. 3. The Leased property shall be used solely for the installation of 152" tunnel on the Evansville, Indiana. 4. LESSOR will be paid a lump sum of $100,000.00 5. LESSEE may not make alterations, additions or improvements to the leased property, without prior written notification to and approval by LESSOR. All such additions to and improvements shall immediately become the property of the LESSOR and subject to the terms of this Lease. 6. LESSEE, at its own cost and expense, shall keep the leased property in good repair, condition and working order, and shall not subject the leased property to careless or needlessly rough usage. 7. LESSOR shall at all times during business hours have the right to enter upon the premises where the leased property may be located for the purpose of inspecting it or observing its use. 8. The leased property shall be delivered to LESSEE at Evansville, Indiana on or before February 1, 2004. LESSEE shall inspect the leased property before the commencement of the Lease. Unless LESSEE gives written notice to the LESSOR within five (5) days after first test use of the leased property specifying any defect in or other objection to the leased property, it shall be conclusively presumed, as between LESSOR and LESSEE, that LESSEE has fully inspected the leased property and found it to be in good condition and repair and in full conformance with any and all express or implied representations, promises, statements or warranties with respect to the merchantability, suitability, or fitness for purpose of the leased property. If LESSEE rejects the leased property for good cause, this Lease shall be null and void. All transportation charges, including duties, from and to Evansville, Indiana shall be the responsibility of LESSEE, All loading and unloading charges in Evansville, Indiana shall be the responsibility of the LESSEE. 9. LESSEE, at its own expense, shall keep the leased property insured for casualty risks required by LESSOR (no underground exclusion) in the amount of $1,250,000.00, with carriers acceptable to LESSOR and a loss payable endorsement in favor of LESSOR, and LESSEE shall further maintain liability insurance in the amount of $1,250,000.00 naming LESSOR as an additional insured, and all policies shall provide that they may not be cancelled or altered without at least ten (10) days' prior written notice to LESSOR. LESSOR shall maintain insurance coverage of the leased equipment until it is received by LESSEE at point of delivery. 10. LESSEE shall pay all taxes and fees connected with this Lease or the LESSEE's use of the leased property, including any use, personal property, or sales taxes resulting therefrom. 11. LESSEE shall indemnify LESSOR against all claims, actions, proceedings, costs, damages and liabilities, including attorneys fees, arising out of, connected with this Lease, or resulting from the use of the leased property. 12. This Lease shall be governed by and construed under the laws of the State of Missouri. 13. Without the prior written consent of the LESSOR, LESSEE shall not assign, transfer, pledge or hypothecate this Lease, the leased property, or any part thereof, or any interest therein, nor sublet or lend the property or any part thereof, nor permit the leased property or any part thereof to be used by anyone other than the LESSEE or LESSEE's employees. 14. This instrument shall be binding upon and inure to the benefit of the respective parties and their legal representatives, successors and assigns. IN WITNESS WHEREOF, this instrument was executed by the parties as of the date above written. AFFHOLDER, INC. A-Y-K-E PARTNERSHIP By /s/ Jerry Shaw By /s/ Robert W. Affholder ---------------------------- -------------------------- Jerry Shaw, Vice President Robert W. Affholder, "LESSEE" Partner "LESSOR"