Klochko Equipment Rental Agreement Standard Terms & Conditions

1) RENT: Rentals shall be payable at Klochko’s (Lessor) office unless otherwise secured. The rental rates set forth are straight-time rates based on an eight (8) hour day, forty (40) hours per week, or 160 hours per 4 weeks. Should the equipment be used longer than the specified hours the overtime rate shall be 1/8th of the daily rate for each hour worked in excess of eight (8) hours in any one day; 1/40th of the weekly rate for each hour worked in excess of forty (40) hours in any one week; and 1/160th of the 4 week rate for each hour worked in excess of 160 hours in any one 4 week period. Klochko will make no allowance for loss of time due to weather or surface conditions or suspension of work. The rental period may be extended by written agreement.

2) DAMAGE WAIVER: In the event that Customer selects the Klochko Limited Damage Waiver Plan (KLDWP), Customer shall not be required to reimburse Lessor for any direct physical loss of, or damage to, the leased equipment from any external cause except that Customer shall remain liable for the following: 25% of first $2,000 in loss or damage, 50% of the next $8,000 in loss or damage, and 100% of the loss or damage in excess of $10,000. The exclusions to such waiver and applicable other terms and conditions are set forth at www.klochko.com/KLDWP , which are incorporated by reference. 

3) LIFT EQUIPMENT - All types of Manlift equipment require that personal safety belts be worn, and lanyards be attached to the machine. These items ARE ONLY SUPPLIED ON REQUEST: safety items are not for rent, but can be purchased outright from the Lessor.

4)  PURCHASE ORDERS. The Customer agrees that the terms and conditions set forth herein shall be applicable to all quotations and purchase orders covering the lease of Lessor’s equipment and shall supersede all printed terms and conditions set for in purchase orders used by the Customer. Lessor hereby objects to any terms and conditions appearing in Customer’s purchase order which (materially or otherwise) modify, contradict, or are in addition to the terms contained herein. Customer agrees by its acceptance of the equipment that Lessor may delete from Customer’s forms any term which is inconsistent with any terms in this offer, including any statement that purports to reject additional or varying terms of the Agreement, or which limit acceptance to the terms contained in Customer’s purchase order (thereby eliminating any terms as to which the writings of the parties disagree).

5)  RENTAL RATES. All stated rental rates are those in effect on the date hereof and may be changed by Lessor from time to time upon thirty (5) days prior written notice. All rental rates are subject to correction for stenographic and clerical errors. Late payments shall bear interest at the highest rate allowed by law on any unpaid balance. Payment shall be deemed made when Customer’s check is received by Lessor, but Lessor reserves all rights if Customer’s check is not honored. If Customer fails to redeliver the equipment to Lessor upon expiration of the term of this Agreement, Customer shall pay rental to Lessor during such holdover period at 150% of the daily rental rate otherwise payable under this Lease.

6) INSPECTION. If upon the Customer’s receipt and inspection of the equipment, such equipment shall appear not to be in conformance with the contract, the Customer shall immediately notify the Lessor of such non-conformance and afford Lessor a reasonable opportunity to inspect the equipment and make any appropriate price adjustment, repair, or replacement. Customer agrees that the inspection provisions herein are adequate and reasonable. Any attempted rejection of the equipment or revocation of acceptance after the inspection period has passed will have no effect, or at the option of Lessor, will constitute a breach by Customer of this contract.

7) INDEMNIFICATION. Customer shall indemnify, defend, and hold harmless Lessor, its officers, directors, employees, agents and their respective successors and assigns, from all losses, claims, lawsuits, liabilities, costs and other damages (including reasonable attorneys fees and court costs) incurred or suffered which arise from or are in connection with Customer’s possession, maintenance, storage, transport or use of the equipment or following the breach by Customer of any payment or performance obligation hereunder, or from the enforcement by Lessor of any of its rights and remedies hereunder.

8) EXCUSABLE DELAY. Lessor shall not be charged with any liability for delay, non-delivery or other non-performance when due to delays of suppliers, acts of God or the public enemy, compliance in good faith with any applicable foreign or domestic governmental law, regulation or order whether or not it proves to be valid, material price increases for the equipment or any component thereof, fires, riots, labor disputes, strikes, unusually severe weather or any other cause beyond the reasonable control of Lessor. To the extent that such causes actually delay performance on the part of the Lessor, the time for the performance shall be extended for as many days beyond the date thereof as is required to obtain removal of such causes.

9) LIMITATION ON LIABILITY. The rental paid by Customer which is allocable in this contract to the equipment alleged to be the cause of any loss or damage to Customer shall be the maximum limit of Lessor’s liability, whether founded in contract, tort or otherwise (including negligence), arising out of, or resulting from (i) the contract or the performance or breach thereof; (ii) the design, manufacture, delivery, sale, storage, transport, repair or replacement of the equipment leased hereunder, or; (iii) the use of any such equipment. In no event shall Lessor have any liability for any incidental or consequential damages (including lost profits). If any equipment to be leased to Customer by Lessor is manufactured, packaged, processed, modified, or otherwise handled by Lessor in substantial compliance with the Customer’s equipment specifications as provided to Lessor, then Lessor will not be liable to the Customer for the failure of such equipment’s performance, or for any of the Customer’s damages (including incidental and consequential damages and lost profits) arising from such equipment failure, and the Customer will indemnify and hold Lessor harmless from any third party suits, claims, damages, expenses (including attorneys fees) or other liabilities arising from such equipment failure.

10). DISCLAIMER OF WARRANTIES. LESSOR DISCLAIMS EACH AND EVERY WARRANTY OF ANY KIND, EXPRESSED OR IMPLIED, INCLUDING THOSE OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE EQUIPMENT. LESSOR SHALL HAVE NO LIABILITY TO CUSTOMER FOR ANY CLAIM, LOSS OR DAMAGE CAUSED OR ALLEGED TO BE CAUSED DIRECTLY, INDIRECTLY, INCIDENTALLY OR CONSEQUENTIALLY (INCLUDING FOR LOST PROFITS) BY THE EQUIPMENT, BY ANY INADEQUACY THEREOF OR DEFICIENCY OR DEFECT THEREIN, BY ANY INCIDENT WHATSOEVER IN CONNECTION THEREWITH, ARISING IN STRICT LIABILITY, NEGLIGENCE OR OTHERWISE OR IN ANY WAY RELATED TO OR ARISING OUT OF THIS AGREEMENT.

11). LOCATION, USE. Customer shall use the equipment solely in connection with Customer’s business operations at the location stated on the face hereof. Lessor shall be entitled to inspect the equipment from time to time, and to observe Customer’s use, storage, and maintenance of the equipment. Customer shall not remove the equipment from such location without the prior written consent of Lessor. Customer represents and warrants that it shall use only trained and competent employees or agents to operate and maintain the equipment. The equipment shall be used only in strict accordance with the manufacturer’s and or Lessor’s manuals, instructions, capabilities and other guidelines. Customer shall not use the equipment if the equipment is not in good working condition or if any safety device is not installed or in good working condition.

12). LICENSES; UTILITIES. The Customer shall, at its sole cost and expense, procure or cause to be procured any and all necessary permits, licenses and other authorizations required for the lawful and proper possession, use and operation of the equipment. Upon request, Customer shall provide Lessor copies of such permits, licenses and authorizations. The Customer also agrees to pay or cause to be paid all lawful charges for electricity, light, heat, power, telephone and other utility service used, rendered, or supplied to, upon or in connection with the equipment.

13). INSURANCE. The Customer will during the term hereof continuously insure the equipment against such risks or hazards as are customarily insured against by businesses of like size and type including, but not limited to, property damage, personal injury and public liability, all with standard extended coverage, vandalism and malicious mischief endorsements and naming Lessor (and such other persons or entities which Lessor shall designate) as additional insureds thereunder. Such insurance for loss or damage to the equipment shall be at all times in an amount equal to or exceeding the full replacement value of the equipment. All claims on such insurance may be adjusted only by the Lessor with the insurers, and all insurance proceeds for loss or damage to the equipment shall be payable to the Lessor. Customer shall also maintain in effect workers compensation insurance as required by law. Customer shall deposit with Lessor certificates of the respective insurers attesting the fact that the required insurance is in force and effect. The insurance policies shall be with insurance companies which Lessor deems acceptable. Upon request, the Customer shall furnish copies to the Lessor of the original insurance policies herein required. Such insurance policies shall contain a provision that they are noncancelable and not subject to material modifications by the insurer or Customer except upon thirty (30) days prior written notice to the Lessor. At least ten (10) days prior to the expiration or cancellation of any such policy. Customer shall furnish to Lessor satisfactory evidence that such policy has been renewed or replaced by another policy. If Customer shall fail to maintain the insurance required hereunder, Lessor may, but shall not be obligated to, obtain alternative insurance for the equipment the cost for which shall be reimbursed to Lessor upon demand as additional rent due hereunder. Insurance requirements and details available at www.klochko.com/–insurance-requirements , which are incorporated by reference.

14). MAINTENANCE AND REPAIR; REDELIVERY. The Customer during the term of this Lease shall maintain the equipment in good condition, repair, and working order at its own expense (including, without limitation, oil, fuel, grease and water), and will make or cause to be made from time to time all necessary repairs, renewals and replacements thereof, ordinary wear and tear and obsolescence exception. Upon termination of this Lease (by passage of time or otherwise) Customer shall redeliver the equipment to Lessor in said condition, with a full tank of fuel. Customer shall pay Lessor all costs of repair and replacement of the equipment resulting from any damage (other than normal wear and tear) occurring after delivery of the equipment to Customer, and Customer shall pay to Lessor rental for such equipment during the period that such damaged equipment is being repaired or replaced.

15). IMPROVEMENTS. The Customer may not make modifications or improvements made (whether with or without Lessor’s consent) shall, at Lessor’s option, be removed by Customer at Customer’s expense.

16). TITLE; LIENS BY CUSTOMER. It is understood and agreed that this is a contract of lease only, and that Customer has not and will not acquire any title or interest in the equipment, nor any option or right to acquire any such title or interest. Customer shall not represent to any third party that it has any ownership interest in the equipment. Lessor shall be permitted to identify (by label, stamping or otherwise) that the equipment is owned by Lessor. The Customer shall not create or permit the creation of any lien, encumbrance or charge upon the equipment or any part thereof. The Customer shall take all steps necessary to discharge and remove any such lien, encumbrance or charge at Customer’s sole cost and expense.

17). ASSIGNMENT. Customer shall not sell, assign, sublet, pledge, mortgage, hypothecate, grant a security interest in or otherwise encumber or suffer a lien upon or against any interest in this Agreement or the equipment or remove the equipment from the place of installation set forth herein unless Customer obtains the written consent of Lessor which may be granted or withheld in Lessor’s sole, absolute discretion. Lessor’s right, title and interest in and to this Lease and to the equipment may be transferred, subcontracted, sold or assigned by Lessor without notice and Lessor’s assignee shall have all the rights, powers, privileges and remedies of Lessor hereunder.

18). COMPLIANCE WITH LAWS. The Customer shall, throughout the terms of the Lease and at no expense to the Lessor, promptly comply or cause compliance with all laws, ordinances, orders, rules, regulations, and requirements of public authorities which may be applicable to the equipment or to the repair and alteration thereof, or to the use or manner of use of the equipment.

19). OBLIGATIONS OF CUSTOMER UNCONDITIONAL. The obligations of the Customer to make the payments required herein and to perform and observe the other agreements on its part contained herein shall be absolute and unconditional and shall not be subject to any defense or any right of set-off, counterclaim, or recoupment against the Lessor. Until such time as this Lease terminates, the Customer (i) will not suspend or discontinue, or permit the suspension or discontinuance of any rental payments or other payment provided for in this Lease, (ii) will perform and observe all of its other agreements contained in the Lease and (iii) will not terminate the Lease for any cause, including without limiting the generality of the foregoing, failure of the equipment, any defect in the Lessor’s title to the equipment, any acts of circumstances that may constitute failure of consideration, destruction of or damage to the equipment, commercial frustration of purpose, or any failure of the Lessor to perform and observe any agreement, whether expressed or implied, or any duty, liability or obligation arising out of or connected with the Lease. The Customer may, at its own cost and expense and in its own name, prosecute or defend any action or proceeding or take any action involving third persons which the Customer deems reasonably necessary in order to secure or protect its right of possession or use hereunder, and in such event the Lessor agrees to cooperate fully with the Customer if the Customer shall so request.

20). EVENTS OF DEFAULT. The term Events of Default shall mean whenever used in the Lease, any one or more of the following events: (a) failure by the Customer to timely pay the rents and/or other obligations required to be paid hereunder; or, (b) failure by the Customer to observe and perform any covenant, condition or agreement on its part to be observed or performed pursuant to the terms of this Lease; (c) the dissolution or liquidation of the Customer or the filing by or against the Customer of a petition in bankruptcy or failure by the Customer promptly to extinguish any execution, garnishment or attachment of such consequence as will impair the Customer’s ability to carry on its business operations, or assignment by the Customer for the benefit of its creditors, or the entry by the Customer into an agreement of composition with its creditors, or other creditor’s action; or, (d) the occurrence of an event default by Customer under any other obligation or agreement between Customer (or any affiliate of Customer) and Lessor.

21). REMEDIES UPON EVENT OF DEFAULT. In addition to all other rights and remedies of Lessor available at law or in equity, all of which remedies shall be cumulative, whenever any Event of Default by Customer shall have occurred, the Lessor may,

(a) accelerate the balance of rentals payable hereunder, thereby requiring prepayment of this Lease with all rentals due and payable immediately upon such notice of acceleration and demand for payment.

(b) Enter Customer’s business premises (or such other location where the equipment is located) and take possession of the equipment pursuant to summary legal proceedings, and sublease the equipment, holding the Customer liable for the difference between the rent and other amounts payable by such sub-Customer in such sub-leasing and the rents and other amounts payable by the Customer hereunder (all of which shall, at Lessor’s option, accelerate and become immediately due and payable) including, but not limited to, all costs and expenses incurred by the Lessor in entering Customer’s business premises, restoring the equipment, repossessing and sub-leasing the equipment.

(c) Terminate this Lease, enter Customer’s business premises (or such other location where the equipment is located) and take possession of the equipment, and the Customer shall promptly reimburse the Lessor for all expenses incurred in connection therewith.

(d) In the event the Customer should default under any of the provisions of the Lease and the Lessor should employ attorneys or incur other expenses for the collection of rent or for the enforcement of payment, performance of observance of any obligation or agreement on the part of the Customer herein contained, the Customer agrees that it will on demand therefore pay to the Lessor the reasonable fees of such attorneys and such other reasonable expenses so incurred by the Lessor.

22). NO REMEDY EXCLUSIVE. No remedy herein conferred upon or reserved to the Lessor is intended to be exclusive of any other available remedy or remedies. Lessor shall have each and every such remedy given under the Lease or now or hereafter existing at law or in equity or by statute.

23). RISK OF LOSS. Customer hereby assumes the entire risk of loss, damage or destruction of the equipment from any and every cause whatsoever commencing with delivery of such equipment to Customer, an agent of Customer, or to the carrier delivering the equipment to Customer or an agent of Customer, whichever is earlier. In the event of loss, damage or destruction of any item of equipment, Customer at its expense (except to the extent of any proceeds of insurance provided by Customer which shall have been received by Lessor as a result of such loss, damage or destruction) and at Lessor’s option shall either:

(a) repair such item, returning it to is previous condition, unless unrepairable; or

(b) replace such item with a like item acceptable to Lessor and in good condition and of the equivalent value, which shall become the property of Lessor and included within the term equipment as used herein.

24). PERFORMANCE BY LESSOR OF CUSTOMER’S OBLIGATIONS. In case of the failure of Customer to comply with any provision of the Lease, Lessor shall have the right, but shall not be obligated, to effect such compliance on behalf of Customer. In such event, all monies spent by and expenses of Lessor in effecting such compliance shall be deemed to be additional rent and shall be paid by Customer to Lessor upon demand.

25). FINANCING STATEMENT. The Lessor, as Customer’s attorney-in-tact, is authorized to file a financing statement signed only by the Lessor (or Assignee) in all places where necessary to perfect a security interest in this Lease Agreement and the equipment covered hereby and all jurisdictions where such authorization is permitted in accordance with the Uniform Commercial Code. Any such filing or recording shall not be deemed evidence of any intent to create a security interest in the Uniform Commercial Code.

26). AMENDMENT. The Lease may not be amended or terminated without the prior written consent of the Lessor and no amendment to the Lease shall be binding upon either party hereto until such amendment is reduced to writing and executed by both parties hereto.

27). ENTIRE AGREEMENT. Except for other agreements referred to herein, this Lease contains all agreements between the parties and there are no other representations, warranties, promises, agreements or understandings, oral, written or inferred between the parties.

28). FURTHER ASSURANCES. Each party agrees to sign and deliver all documents, instruments, certificates, and applications and take all other actions which may be deemed reasonably necessary by the other party to consummate the transactions contemplated by the Agreement.

29). CLAIMS PERIOD. No action, regardless of form, arising out of this contract shall be brought by Customer more than one (1) year after such cause of action has occurred.