LEASE AGREEMENT

TERMS AND CONDITIONS

                Lessor, hereby agrees to lease to Lessee the Leased Property described on the face of this agreement or in attached schedules in accordance with the following agreement:

1. TITLE AND OWNERSHIP.  The Leased Property shall at all times be and remain the sole and exclusive properly of Lessor.  Lessee shall have only the rights to use the Leased Property in accordance with the terms of this agreement.  Lessor shall have the right to display notice of its ownership of the Leased Property by display of an identifying stencil, plate or other marking and Lessee agrees that it will not remove or cover such markings without the written permission of Lessor.  It is expressly intended and agreed that the Leased Property shall be personal property even though it may be affixed or attached to real estate.

2. INSPECTION. The Lessee acknowledges that Lessee has inspected the Leased Property and has determined that same is in good condition and suitable for the purpose for which it has been leased.  Lessee understands the proper use of the Leased Property.  The Lessee shall only use the Leased Property in the manner for which it is designed and intended to be used.  Lessee further acknowledges Lessee’s responsibility to inspect the Leased Property prior to its use and to notify Lessor of any defects.  Lessee acknowledges that the leased property is being received AS IS and WITH ALL FAULTS.

3. REPLACEMENT OF MALFUNCTIONING LEASED PROPERTY.  If the Leased Property becomes unsafe or in disrepair for any reason, Lessee agrees to discontinue its use and to notify Lessor.  Lessor will repair or replace the Leased Property with similar Leased Property in good working order if available, and if the defect is the result of normal use.  Lessor is not responsible for any incidental or consequential damages caused by delays or otherwise, and Lessee hereby waives any right or entitlement thereto.  

4. WARRANTIES.  Lessor is not the manufacturer of the rented property nor the agent of the manufacturer, and no warranty against patent or latent defects in material workmanship or capacity is given, and Lessee expressly waives all such warranties of merchantability, suitability, or fitness for a particular purpose which may be accorded by law or otherwise.  LESSOR MAKES NO REPRESENTATIONS, PROMISES, OR WARRANTIES, EITHER EXPRESSED OR IMPLIED, CONCERNING THE MERCHANTABILITY, SUITABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OF THE LEASED PROPERTY.  LESSOR EXPRESSLY DISCLAIMS, AND LESSEE WAIVES, ANY AND ALL REPRESENTATIONS, AND WARRANTIES, WHETHER ARISING FROM STATUTE, COMMON LAW, CUSTOM, OR OTHERWISE.

5. HOLD HARMLESS AGREEMENT. Lessee shall defend, indemnify and hold harmless Lessor its employees, agents and subsidiaries, from and against all claims, liabilities, losses, damages to property or otherwise, and expenses, of every character whatsoever, relating to or arising out of the use or possession of the Leased Property by Lessee or anyone acquiring use of possession through Lessee, whether intentional or otherwise, and from and against the actions, negligent or otherwise, of Lessee, Lessee's employees and agents of Lessee or Lessee’s subcontractors.  The indemnities included in this paragraph shall include reasonable attorneys’ fees paid by Lessor in defending suits and actions involving liability covered by the indemnification provision in this paragraph.  Specifically, and without limitation, Lessee shall hold harmless Lessor and Lessor’s employees, agents and subsidiaries, from and against any damage that may occur to the interior or exterior of lessee’s vehicle during loading, unloading, or transporting Leased Property.

6. TIME OF RETURN. Lessee’s right of possession terminates on the expiration of the rental period and retention of possession after this time constitutes a material breach of Lessee's obligations under this contract.  Time is of the essence in this agreement.  Any extension must, at Lessor's election be mutually agreed upon in writing.  Rent shall continue to accrue until the Leased Property is properly returned to Lessor.

7. ASSIGNMENTS, SUBLEASES AND LOANS OF LEASED PROPERTY. The Lessor may assign its right under this contract without the Lessee's consent.  The Lessee may not sublease or loan the Leased Property without the Lessor's written permission.  The Leased Property shall be used only by Lessee.  Any purported assignment by the Lessee is void.

8. RETURN OF LEASED PROPERTY. At the termination of this agreement, Lessee shall return all the Leased Property to Lessor's premises during Lessor's regular business hours, in the condition and repair as when delivered to Lessee, subject only to reasonable wear and tear from a responsible use.  Lessee shall be liable for all damages to or loss of the Leased Property occurring because the Leased Property was not returned within Lessor's regular business hours.  If Lessor has agreed to deliver the Leased Property to Lessee or to pick up the Leased Property from Lessee, Lessee shall be responsible for all losses or damage to the Leased Property from time of delivery to Lessee and until picked up by Lessor.

9. INSPECTION BY LESSOR. Lessor shall at all times have the right to enter any premises where the Leased Property may be located for purposes of inspecting it, observing its use, or removing it from Lessee's premise.

10. DIRTY, OR DAMAGED LEASED PROPERTY.  Lessee agrees to pay for any damage to the Leased Property regardless of cause, except reasonable wear and tear, while Leased Property is out of possession of Lessor.  Lessee also agrees to pay a reasonable cleaning charge for all Leased Property returned dirty.  Accrued rental charges cannot be applied against the purchase or cost of repair or damaged goods.  Leased Property damaged beyond repair will be paid for by Lessee at the Replacement Cost of the Leased Property when rented.  The cost of repairs will be borne by the Lessee, whether performed by Lessor, or at the Lessor's option by others.

11. THEFT OR LOSS OF LEASED PROPERTY. Lessee shall be liable for any loss or theft of the Leased Property while the Leased Property is out of possession of Lessor.  The Lessee agrees to pay for the Leased Property at its replacement cost when rented for all types of theft or mysterious disappearance.  Accrued rental charges cannot be applied against the purchase price or cost of repairs of damaged, lost or stolen Leased Property.

12. WEATHER POLICIES.  Lessee shall pay the required rent regardless of weather conditions.  LESSOR SHALL BE UNDER NO OBLIGATION TO MAKE ANY REFUND BASED ON WEATHER CONDITIONS EXCEPT AS OTHERWISE SPECIFICALLY STATED HEREIN.  In the event of a MANDATORY EVACUATION ORDER, please call Smiley’s Beach Rentals at 850-227-1287 to make arrangements for pick-up or return of the Leased Property.  An emergency return location will be provided.  In the event of a mandatory evacuation order only, a pro-rated credit will be issued to Lessee based on the amount of time remaining on the rental.

13. COLLECTION COSTS. The Lessee agrees to pay all reasonable collection attorney’s and court fees and other expenses involved in the collection of charges or enforcement of the Lessor's rights under this contract.

14. DAMAGE DEPOSIT OR SECURITY.  At the time of receipt of the Leased Property, Lessee shall provide Lessor with a valid credit card.  Lessee hereby authorizes Lessor to charge to Lessee’s credit card any and all costs, expenses, and fees due to Lessor from Lessee under the terms of this Agreement.  Alternatively, Lessee may make a cash deposit equal to the full value of the Leased Property.  Lessor shall be entitled to apply any such cash deposit to any and all rent, costs, expenses, and fees due to Lessor from Lesse under the terms of this Agreement.  Provided that Lessee returns the Leased Property to Lessor in good condition as required under the terms and provisions of this Agreement, Lessor shall return the cash security deposit to Lessee, less any deductions for the payment of rent, costs, expenses and fees allowed hereunder.

15. ENTIRE AGREEMENT; MODIFICATION; AUTHORITY.  This writing contains and constitutes the entire agreement between the parties. This lease agreement can only be modified by written agreement signed by both Lessor and Lessee. The Lessee represents that Lessee is at least sixteen (16) years of age and under no disability which will prevent Lessee from entering into this agreement.