HomeMy WebLinkAbout529136 DENBURY ONSHORE LLC - CONTRACT - AGREEMENT MISC - DENBURY ONSHORE LLCEquipment Rental Agreement
THIS EQUIPMENT RENTAL AGREEMENT dated this 3.I_ day of 20ja
BETWEEN
Denbury Onshore, LLC of 1 Gopher Ridge Lane, Fort Collins, Colorado, 83113
(the "Lessor")
OF THE FIRST PART
-and-
City of Fort Collins of 300 LaPorte Avenue, Fort Collins, Colorado, 80521
(the "Lessee")
OF THE SECOND PART
(the Lessor and Lessee are collectively the "Parties")
IN CONSIIDERATION of the mutual covenants and promises in this Agreement, the
sufficiency of which the Parties acknowledge, the Lessor leases the Equipment to the Lessee, and
the Lessee leases the Equipment from the Lessor on the following terms:
Definitions.
1. The following definitions are used but not otherwise defined in this Agreement:
a. "Casualty Value" means the lesser of Lessor's book value or market value of the
Equipment at the end of the Term or when in relation to a Total Loss, the market
value the Equipment would have had at the end of the Term but for the Total
Loss. The Casualty Value may be less than but will not be more than the original
purchase price of the Equipment.
b. "Equipment" means three pre -configured monitoring stations that include H2S
sensors and associated meteorological monitoring and telemetry equipment.
C. "Total Loss" means any loss or damage that is not repairable or that would cost
more to repair than the market value of the Equipment.
is fit for the following purpose: For a 3 month monitoring project to monitor 1-12S
concentrations and meteorological parameters at three locations.
Loss and Damage
10. To the extent permitted by law, the Lessee will be responsible for risk of loss, theft,
damage or destruction to the Equipment from any and every cause. Nothing herein shall
be interpreted as a waiver of any protections or limitations afforded Lessee under the
Colorado Governmental Immunity Act.
11. If the Equipment is lost or damaged during the Term, the Lessee will continue paying
Rent, will provide the Lessor with prompt written notice of such loss or damage and will,
if the Equipment is repairable, put or cause the Equipment to be put in a state of good
repair, appearance and condition, as mutually agreed to in writing by the parties.
12. In the event of Total Loss of the Equipment, the Lessee will provide the Lessor with -
prompt written notice of such loss and will pay to the Lessor the Casualty Value of the
Equipment, at which point ownership of the Equipment passes to the Lessee.
Ownership, Right to Lease
13. The Equipment is the property of the Lessor and will remain the property of the Lessor.
Nevertheless, Lessee, including its employees and agents, shall have exclusive right of
possession of the Equipment during the Term.
14. The Lessee will not encumber the Equipment or allow the Equipment to be encumbered
or pledge the Equipment as security in any manner.
15. The Lessor warrants that the Lessor has. the right to lease the Equipment according to the
terms in this Agreement.
16. The occurrence of any one or more of the following events will constitute an event of
default ("Event of Default") under this Agreement:
a. The Lessee fails to pay any amount provided for in this Agreement when such
amount is due or otherwise breaches the Lessee's obligations under this
Agreement and such condition is not cured within 15 days of receiving written
notice of such condition and demand for cure from Lessor.
b. The Lessee becomes insolvent or makes an assignment of rights or property for
the benefit of creditors or files for or has bankruptcy proceedings instituted
against it under the Federal bankruptcy law of the United States or other
competent jurisdiction.
c. A writ of attachment or execution is levied on the Equipment and is not released
or satisfied within 10 days.
Remedies
17. On the occurrence of an Event of Default, the Lessor wilt be entitled to pursue any one or
more of the following remedies (the "Remedies"):
Payment
22. All dollar amounts in this agreement refer to U.S. dollars, and all payments required to be
paid under this Agreement will be paid in U.S. dollars unless the Parties agree otherwise.
General Terms
23. This Agreement may be executed in counterparts. Facsimile signatures are binding and
are considered to be original signatures.
IN WITNESS WHEREOF, the parties hereto have caused this Equipment Rental Agreement to
be executed by their duly authorized representatives as of the date first written above.
LESSOR:
Denbury Onshore, LLC
Gerry Paul
Print Name
3
_!�(�C U �� �'h� �_ DirectorPurehasing & Risk Management
Print Title Print Title
ATTEST:
City Clerk