Lease Terms and Conditions

Rental customers (“Customer”) who have executed a Proposal and Rental Agreement (“PRA”) with Vesta Housing Solutions, LLC (“VESTA”) accept and acknowledge these terms and conditions and agree to be bound hereby. Rental Agreement – Terms and Conditions are available upon request.

LEASE/TERM. The Equipment rental initial term is stated on the PRA (“Initial Term”). The PRA can be terminated at the Initial Term’s or Extended Term’s end date by giving the VESTA at least 60 days’ notice prior scheduled end date.  At VESTA’s option, the Initial Term and subsequent terms will automatically renew for successive terms (each an “Extended Term”) if notice of termination is not provided by the Customer. Rent will be the current rate plus, 5%, for a term totaling the length of the Initial Term.  These terms and conditions are applicable to any Extended Term.

RENT.  Rent is payable the 1^st of each month unless otherwise stated.  Invoices are for convenience only, and payments more than 5 days late are subject to a 10% late charge. The parties further agree: (a) the PRA is a net lease, and paying rent is absolute and unconditional; (b) Customer may not set-off payments, and the obligation to pay rent is not altered due to defect, destruction or damage from any cause; (c) Customer is responsible for all applicable taxes; (d) Customer will pay for all utility services.  Any charges for third party services or materials provided by VESTA during the lease are subject to change during the pendency of the lease term due to such service/suppliers’ increases in charges.

 

WARRANTY. VESTA will correct or repair HVAC and major structural integrity defects in the units. This limited warranty does not extend to Customer’s responsibilities for defects and duties to maintain plumbing, electrical, mechanical and/or aesthetic components of the Modular Building(s) and will be voided if Customer fails to perform all maintenance requirements in Customer’s Preventative Maintenance Responsibilities document.  This limited warranty does not apply to any costs, repairs, or services if the unit(s) have been damaged or in any way altered due to abuse, misuse, negligence, accident, vandalism, or pest infiltration, if corrective work is due by repairs made by anyone other than VESTA, or if Customer fails to report defective parts or conditions with 5 days of discovery. VESTA disclaims all other warranties, express or implied, including without limitation warranties of merchantability, fitness for particular purpose or usage of trade. VESTA shall not be liable for any form of consequential damages for breach of this warranty or Agreement. Lessee’s sole remedy against Lessor is limited to the actual costs of repair.

TITLE.  Title to the Equipment will always remain wholly with VESTA. Customer will not permit liens or encumbrances thereon. The Equipment is personal property and will never be affixed to the premises where it is located.  Customer may not assign the PRA or sublet without VESTA’s written consent. With 24 hours e-mail notice, except in emergent circumstances, VESTA may inspect the Equipment.  Customer may not relocate Equipment or remove any VESTA insignia from the Equipment.

USE.  Customer will use the Equipment in a careful and proper manner complying with all laws and regulations. Customer will not use or store hazardous materials in the Equipment. Customer is responsible for all permitting and represents and warrants to being the lawful owner or has the owner’s permission for use and occupancy at the Equipment’s location.

INDEMNITY.  Customer will indemnify and hold VESTA, its successors and assigns, harmless from any claims, losses, costs or expenses (including attorneys’ fees) alleged or sustained by third parties and/or resulting from a breach of these terms and conditions, including, but not limited to, claims of property damage, liens or encumbrances, death and/or bodily injury, caused in whole or in part by Customer’s use, operation, maintenance, condition or alteration of the Equipment or Customer’s failure to comply in any respect with this Agreement.

REPAIRS/MAINTENANCE.  Customer will maintain the Equipment in good repair and condition, reasonable wear and tear excepted, at its sole cost and expense.  Customer’s duties include, but are not limited to, those described in the Customer’s Preventative Maintenance Responsibilities document available at www.vestamodular.com/maintenance and maybe contained within the unit.  Customer must obtain VESTA’s approval for Equipment repair, and work must be completed in a good and workmanlike manner. Customer will compensate VESTA for any damages caused by approved or unapproved work and/or failure to perform maintenance as described in the foregoing Preventative Maintenance Responsibilities document.

LOSS OR DAMAGES.  Unless Customer accepts and makes Damage Waiver payments, Customer bears the entire risk of loss and damage to the Equipment from any cause whatsoever.  If such occurs, Customer shall, at VESTA’s option, (i) repair the Equipment to good repair and working order; (ii) replace with like Equipment; or (iii) pay VESTA the greater of the Equipment’s book value or fair market value.

INSURANCE.  As evidenced by certificates of insurances, Customer will procure and keep in full force during the lease the following with premiums prepaid: i) Commercial General Liability Insurance, minimum combined single limit of $1,000,000 per occurrence, written on an occurrence form, including coverage for premises, operations, contractual liability, broad form property damage, independent contractors and personal injury liability, naming VESTA as an additional insured and endorsing VESTA on this insurance policy; ii) Commercial Property Insurance, protecting against all loss and damages, at full replacement cost, sustained or suffered due to the loss of or damage to the Equipment as a result of collision, fire, lightning theft, flood, windstorm, explosion or any other casualty, naming VESTA as a loss payee, and will endorse VESTA on this insurance policy.  Customer will deliver certificates evidencing all such insurance to VESTA prior to acceptance/occupancy of

the Modular Building(s), time being of the essence. Each certificate will state that such insurance will not terminate or be materially changed without prior written notice to Lessor. If Customer fails to deliver, or keep in effect, the insurance certificates required by this Agreement, at VESTA’s option, VESTA may obtain such insurance on behalf of Customer and charge Customer the total cost of obtaining such insurance plus a $250 monthly administrative fee for acquiring and carrying the insurance. VESTA Modular uses ‘myCOI Central’ to track and establish insurance compliance with the contract terms. Subcontractor will receive an email from VESTA Modular with instructions on how to register.  Evidence will need to be submitted and approved for each project by Subcontractor’s agent.  If you do not receive this email within two (2) days of issuance of this Subcontract Agreement, please contact our office immediately.

EQUIPMENT DAMAGE WAIVER. The Equipment Damage Waiver relieves Customer of financial responsibility in excess of $1,000 if Equipment is lost or damaged due to theft, act of God or vandalism. The Damage Waiver shall be void unless Customer (a) takes reasonable precautions against theft or vandalism, (b) notifies VESTA of such event within 3 days of discovery, (c) delivers to VESTA satisfactory proof of the loss and police report regarding the event within 30 days and (d) Customer is in compliance with the PRA.  The Equipment Damage Waiver is not total protection, is void if the Equipment is damaged due to neglect or inadequate security and does not relieve Customer of its obligation to provide liability insurance.

DELIVERY & RETURN OF EQUIPMENT.  Customer will pay for the Equipment’s delivery and return costs as stipulated in the PRA.  Customer is responsible for site preparation and accessibility subject to VESTA’s approval.   Customer is responsible for additional charges incurred by VESTA for unacceptable site preparation and inaccessibility.  Customer must provide a minimum of 14 days written notice prior to the requested pick-up date which can be no earlier than the end of the guaranteed term of the lease. All damage, return and unpaid rent must be paid in advance of return of the units. If pick-up is attempted but the Equipment is not accessible or ready, Customer is liable for VESTA’s delay costs and expenses.  The Equipment is to be available for return in good condition and repair, ordinary wear and tear excepted. Customer will not perform any tear down or return activities and/or services.  Equipment with accessories, attachments or other items missing, Equipment requiring repairs of any kind, or requiring restoration to original specifications will remain on rent until replacements, repairs or restorations have been made or paid for by Customer in a manner acceptable to VESTA.  Any changes, alterations, or improvements immediately, upon their completion, become VESTA’s property without compensation to Customer.  Customer will be solely responsible for all tires, axles, hitches, and related hardware, and will pay for replacement of such parts if missing. The contract price for this project has been calculated based on the current prices for the component building materials and services. However, the market for the building materials and transportation is considered to be volatile, and sudden price increases could occur. VESTA agrees to use reasonable efforts to obtain the lowest possible prices from available vendors, but should there be an increase in the prices for services, materials, supplies and/or components that are purchased after execution of this Agreement for use in this project, Customer agrees to pay that cost increase to VESTA. Any claim by VESTA for payment of a cost increase, as provided above, shall require written notice delivered by the VESTA to Customer stating the increased cost.

DEFAULT, REMEDIES & BANKRUPTCY MATTERS. After providing the Customer with 5 days’ notice to cure any breach of this PRA or these terms and conditions, VESTA has right to exercise any one or more of the following remedies: (a) to terminate the PRA and declare the entire amount of rent and damage assessments immediately due and payable; (b) to take possession of the Equipment, without demand, notice or court, and Customer waives all damages occasioned by such taking; and/or (v) to pursue any other remedy at law or in equity.  Customer grants VESTA a lien in all contents and proceeds thereof to secure payment of the damages in the event of default under this Lease.  Customer agrees to pay all costs of collection including, but not limited to, reasonable attorney’s or collection agency fees.   Upon default interest on all unpaid amounts shall accrue at the rate greater of 21% per annum, compounded monthly or the maximum allowed by law.  Customer must provide notice of any event of insolvency within 10 days thereof.  If any proceeding under a bankruptcy act is commenced by or against the Customer, or if the Customer is adjudged insolvent, or if Customer makes any assignment for the benefit of its creditors, or if a writ of attachment or execution is levied on the Equipment and is not released or satisfied within ten (10) days thereafter, or if a receiver is appointed in any proceeding or action to which the Customer is a party with authority to take possession or control of the Equipment, VESTA has and may exercise any one or more of the remedies set forth in this section; and this Agreement shall, at the option of the VESTA, without notice, immediately terminate and shall not be treated as an asset of Customer.

MISCELLANEOUS.  The PRA and these terms and conditions are the entire agreement between the parties and can only be modified in writing executed by both parties.  VESTA’s failure at any time to require strict performance by Customer with any of the provisions hereof does not constitute a waiver by VESTA or diminish VESTA’s right thereafter to demand strict compliance.  This Agreement is governed by and interpreted under the laws of the State of Michigan.  Written notices are to be delivered to the addresses contained in the PRA and may be sent via email to satisfy any notice provisions.