Equipment Lease - Thomas P. Smith and TASER International Inc.
EQUIPMENT LEASE
This Equipment Lease (this "Lease") is made effective as of August 21,1998,
between Thomas P. Smith (the "Lessor"), 7500 E. Deer Valley Rd. #15, Scottsdale,
AZ 85255, and Taser International, Inc. (the "Lessee"), 7339 E. Evans Road,
Scottsdale, Arizona 85260, and states the agreement of the parties as follows:
EQUIPMENT SUBJECT TO LEASE. The Lessor shall lease the equipment listed on the
attached Exhibit"A".
PAYMENT TERMS. Payments in the amount of $1,556.05 shall be due on the first
day of each month, with the first payment due on September 25, 1998 and
terminate on August 25, 2013. The lease payments shall be due whether or not the
Lessee has received notice of a payment due.
SERVICE CHARGE. If any Lease installment is not paid within 10 day(s) after the
due date, the Lessee shall pay to the Lessor a service charge of 5% of the late
payment.
NON-SUFFICIENT FUNDS. The Lessee shall be charged $20.00 for each check that is
returned to the Lessor for lack of sufficient funds.
LEASE TERM. This Lease shall begin on the above effective date and shall
terminate on August 25, 2013, unless otherwise terminated in a manner consistent
with the terms of this Lease.
CARE AND OPERATION OF EQUIPMENT. The equipment may only be used and operated
in a careful and proper manner. Its use must comply with all laws, ordinances,
and regulations relating to the possession, use, or maintenance of the
equipment, including registration and/or licensing requirements, if any.
ALTERATIONS. Lessee shall make no alterations to the equipment without the
prior written consent of the Lessor. All alterations shall be the property of
the Lessor and subject to the terms of this Lease.
MAINTENANCE AND REPAIR. The Lessee shall maintain at the Lessee's cost, the
equipment in good repair and operating condition, allowing for reasonable wear
and tear. Such costs shall include labor, material, parts, and similar items.
LESSOR'S RIGHT OF INSPECTION. The Lessor shall have the right to inspect the
equipment during Lessee's normal business hours.
RETURN OF EQUIPMENT. At the end of the Lease term, the Lessee shall be
obligated to return the equipment to the Lessor at the Lessee's expense.
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OPTION TO RENEW. If the Lessee is not in default upon the expiration of this
lease, the Lessee shall have the option to renew this Lease for a similar term
on such terms as the parties may agree at the time of such renewal.
ACCEPTANCE OF EQUIPMENT. The Lessee shall inspect each item of equipment
delivered pursuant to this Lease. The Lessee shall immediately notify the
Lessor of any discrepancies between such item of equipment and the description
of the equipment in the Equipment Schedule. If the Lessee fails to provide
such notice before accepting delivery of the equipment, the Lessee will be
conclusively presumed to have accepted the equipment as specified in the
Equipment Schedule.
OWNERSHIP AND STATUS OF EQUIPMENT. The equipment will be deemed to be personal
property, regardless of the manner in which it may be attached to any other
property. The Lessor shall be deemed to have retained title to the equipment
at all times, unless the Lessor transfers the title by sale. The Lessee shall
immediately advise the Lessor regarding any notice of any claim, levy, lien, or
legal process issued against the equipment.
RISK OF LOSS OR DAMAGE. the Lessee assumes all risks of loss or damage to the
equipment from any cause, and agrees to return it to the Lessor in the
condition received from the Lessor, with the exception of normal wear and tear,
unless otherwise provided in this Lease.
INDEMNITY OF LESSOR FOR LOSS OR DAMAGES. Unless otherwise provided in this
Lease, if the equipment is damaged or lost, the Lessor shall have the option of
requiring the Lessee to repair the equipment to a state of good working order,
or replace the equipment with like equipment in good repair, which equipment
shall become the property of the Lessor and subject to this Lease.
LIABILITY AND INDEMNITY. Liability for injury, disability, and death of workers
and other persons caused by operating, handling, or transporting the equipment
during the term of this Lease is the obligation of the Lessor. Lessor
shall maintain liability insurance of at least $1,000,000.00. Payment for
Insurance shall be paid be Lessee.
CASUALTY INSURANCE. The Lessor shall insure the equipment in an amount of at
least $196,000.00. Payment for Insurance shall be paid by Lessee.
TAXES AND FEES. During the term of this Lease, the Lessee shall pay all
applicable taxes, assessments, and license and registration fees on the
equipment.
DEFAULT. The occurrence of any of the following shall constitute a default
under this Lease:
A. The failure to make a required payment under this Lease when due.
B. The violation of any other provision or requirement that is not
corrected within
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30 day(s) after written notice of the violation is given.
C. The insolvency or bankruptcy of the Lessee.
D. The subjection of any of Lessee's property to any levy, seizure,
assignment, application or sale for or by any creditor or government
agency.
RIGHTS ON DEFAULT. In addition to any other rights afforded the Lessor by law,
if the Lessee is in default under this Lease, without notice to or demand on
the Lessee, the Lessor may take possession of the equipment as provided by law,
deduct the costs of recovery (including attorney fees and legal
costs), repair, and related costs, and hold the Lessee responsible for any
deficiency. The rights and remedies of the Lessor provided by law and this
Agreement shall be cumulative in nature. The Lessor shall be obligated to
re-lease the equipment, or otherwise mitigate the damages from the default, only
as required by law.
NOTICE. All notices required or permitted under this Lease shall be deemed
delivered when delivered in person or by mail, postage prepaid, addressed to
the appropriate party at the address shown for that party at the beginning of
this Lease.
ASSIGNMENT. The Lessee shall not assign or sublet any interest in this Lease or
the equipment or permit the equipment to be used by anyone other than the
Lessee or Lessee's employees, without Lessor's prior written consent.
ENTIRE AGREEMENT AND MODIFICATION. This Lease constitutes the entire agreement
between the parties. No modification or amendment of this Lease shall be
effective unless in writing and signed by both parties. This Lease replaces
any and all prior agreements between the parties.
GOVERNING LAW. This Lease shall be construed in accordance with the laws of the
State of Arizona.
SEVERABILITY. If any portion of this Lease shall be held to be invalid or
unenforceable for any reason, the remaining provisions shall continue to be
valid and enforceable. If a court finds that any provision of this Lease is
invalid or unenforceable, but that by limiting such provision, it would become
valid and enforceable, then such provision shall be deemed to be written,
construed, and enforced as so limited.
WAIVER. The failure of either party to enforce any provision of this Lease
shall not be construed as a waiver or limitation of that party's right to
subsequently enforce and compel strict compliance with every provision of this
Lease.
CERTIFICATION. Lessee certifies that the application, statements, trade
references, and financial reports submitted to Lessor are true and correct and
any material misrepresentation will constitute a default under this Lease.
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ARBITRATION. Any controversy or claim relating to this Lease, including the
construction or application of this Lease, will be settled by binding
arbitration under the rules of the American Arbitration Association, and any
judgment granted by the arbitrator(s) may be enforced in any court of proper
jurisdiction.
Lessor:
Thomas P Smith
/s/ Thomas P Smith
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Thomas P Smith
Lessee:
Taser International,Inc.
By: /s/ Patrick W. Smith
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Patrick W. Smith
President
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EXHIBIT A
EQUIPMENT SCHEDULE
Equipment Description: Cessna 414