Below is an overview of the Molex lease process as it applies to Molex Application Tooling equipment.
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1 Dear Valued Customer, Below is an overview of the Molex lease process as it applies to Molex Application Tooling equipment. Lease process: Molex does not offer leases for all of the equipment that we promote. Lease terms are generally offered on Molex applicator type tooling and large machines. Customers can contact their local Molex representative or the local Molex Customer Service group to see if a particular part number is available for leasing. Leasing is only offered in North America and is NOT available globally due to the many different country and tax laws. Overall process for leasing Molex equipment: Customer to identify the proper Molex tool part number for their application. o Molex web is the best place to identify all of the proper tooling available o If multiple tools are available, customer needs to determine the proper one. There is a difference between tools and most often it is a wire awg or insulation thickness difference. Contact Molex Customer Service to confirm the part number identified is available for leasing. If available for lease, obtain the leasing terms for the tool identified from Customer Service. Customer to provide a PO for leasing per Customer Service instructions. Once PO is generated and provided to Molex Customer Service: o Molex will create a lease contract. o Molex will forward the lease contract to the customer. o Customer MUST SIGN and forward contract back. This is generally an area where time is added to the delivery date. o Molex will enter order into system. o The Molex Promise Date (MPD) will not begin until the order is entered into the Molex system. Customer is responsible for the leased tooling. o Customer must maintain the tool and replace worn perishable parts when needed. o Molex equipment has a 2 year manufacturing warranty against defects from the factory (Molex). o Tool must be returned to Molex at the end of the lease agreement in good working condition. Customer must request an RMA no. prior to returning any equipment. Molex Incorporated 2222 Wellington Court, Lisle, IL USA main fax molex.com
2 Prior to the end of the lease term a renewal letter will be sent out. Customer may issue a new P.O. if they plan to continue leasing the equip. or request an RMA to return the equipment. If there is no response to the renewal letter the lease will automatically be renewed and billed. o Customer is responsible to pay the bill or return the equipment PRIOR to the end of the contract. o o Molex does offer buy out options on leased equipment. These options are NOT dollar for dollar buy outs and depend on the length of lease in question and lease payments made to date. End of Lease Process Molex is committed to supplying the highest quality tooling for the interconnect industry. Molex offers an equipment lease program for tooling as a business partnership with our customers to: Help with projects where the life-cycle of production is uncertain. Where a large financial investment is required due to the type of equipment or the amount of equipment required. The lease program allows customers to have production flexibility if their business requirements change from year to year. Molex s minimum lease requirement is 1 year, we do not offer anything less than 1 year. Molex has this detailed lease process to help make it as easy as possible to lease a tool from Molex and to ensure the tools leased are delivered in a timely fashion. Again, leasing is only offered in North America and is NOT available globally due to the many different country and tax laws. There are no plans to extend this lease process outside of North America. Thank you for your business and if you have any questions please contact your local Molex representative or the Molex Customer Service group in your region. Best Regards, Molex Application Tooling
3 LEASE CONTRACT NO: CUSTOMER P.O. NO: TOOLING LEASE AGREEMENT This Tooling Lease Agreement ( Agreement ) is made between, having a place of business at ("Lessee"), and Molex Incorporated, a Delaware corporation having a place of business at 2222 Wellington Ct, Lisle Illinois 60532, ( Lessor ). WHEREAS, Lessor manufactures certain tooling that is useful for applying, among other things, Molex products to wires ( Molex Tooling ); wires; WHEREAS, Lessee seeks to lease the Molex Tooling for the sole purpose of applying, among other things, Molex products to NOW, THEREFORE, Lessor and Lessee agree as follows: 1. Lease. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Molex Tooling, part number. The equipment shall be kept at the following address and shall not be removed without Lessor s prior consent:. 2. Term. The term of this Lease shall commence on the Ship Date. This agreement shall automatically renew subject to all conditions herein for an additional lease period of twelve (12) months every following year. This lease is subject to termination by either party upon written notice thirty (30) days prior to the end of the current lease period. Lessor reserves the right to modify the rental payment for any additional lease period. This agreement is for twelve (12) months per each renewal and payments are non-refundable. 3. Deliver. Lessor shall deliver the Molex Tooling FCA (Molex manufacturing facility). 4. Rent and Deposit. a. Yearly Rent. The yearly rent for the Molex Tooling shall be paid in installments of each year, pursuant to invoices issued by Molex. Payment shall be remitted to the address set forth on the Molex invoice. Any installment payment not made by the invoice due date shall be considered overdue and in addition to Lessor's other remedies, Lessor may levy a late payment charge equal to one percent (1%) per month on any overdue amount, or the highest rate allowed by applicable law, whichever is lower. b. Deposit. Lessee shall pay a deposit in the following amount prior to taking possession of the Molex Tooling:. The deposit will be refunded to Lessee promptly following Lessee's performance of all obligations in this Lease. 5. Use. Lessee shall use the Molex Tooling in a careful and proper manner and shall comply with and conform to all national, state, municipal, police and other laws, ordinances and regulations in any way relating to the possession, use or maintenance of the Molex Tooling. Before using the Molex Tooling, Lessee agrees to determine the suitability of the Molex Tooling for Lessee s intended use, and shall fully review the Instruction Manual that is provided with the Molex Tooling, including the warnings set forth in the Instruction Manual and applied directly to the Molex Tooling. Lessee shall also ensure that any persons that use the Molex Tooling shall have reviewed and understand the instructions and warnings set forth in the Instruction Manual and the warnings applied directly to the Molex Tooling. Lessee assumes all risk and liability whatsoever in connection with Lessee s use or misuse of the Molex Tooling. Lessee shall only use the Molex Tooling with the Molex products for which the Molex Tooling was designed to operate with, and any other use shall be a material breach of this Agreement that shall allow Lessor to immediately terminate this Agreement. 6. Right to Lease. LESSOR WARRANTS THAT LESSOR HAS THE RIGHT TO LEASE THE MOLEX TOOLING, AS PROVIDED IN THIS LEASE. 7. Repairs. Except for any repairs covered by the express warranty set forth in this Agreement, Lessee, at its own cost and expense, shall keep the Molex Tooling in good repair, condition and working order and shall furnish any and all parts, mechanisms and devices required to keep the Molex Tooling in good mechanical working order. 1
4 8. Loss and Damage. a. Lessee hereby assumes and shall bear the entire risk of loss and damage to the Molex Tooling from any and every cause whatsoever. No loss or damage to the Molex Tooling or any part thereof shall impair any obligation of Lessee under this Lease which shall continue in full force and effect through the term of the Lease. b. In the event of loss or damage of any kind whatever to the Molex Tooling, Lessee shall, at Lessor's option: (i) (ii) (iii) Place the same in good repair, condition and working order; or Replace the same with like equipment in good repair, condition and working order; or Pay to Lessor the replacement cost of the Molex Tooling. 9. Surrender. Upon the expiration or earlier termination of this Lease, Lessee shall return the Molex Tooling to Lessor in good repair, condition and working order, ordinary wear and tear resulting from proper use thereof alone excepted, by delivering the Molex Tooling at Lessee's cost and expense to such place as Lessor shall specify. 10. Insurance. Lessee shall procure and continuously maintain and pay for: a. All risk insurance against loss of and damage to the Molex Tooling for not less than the full replacement value of the Molex Tooling, naming Lessor as loss payee, and; b. Combined public liability and property damage insurance with limits as approved by Lessor, naming Lessor as additionally named insured and a loss payee. The insurance shall be in such form and with such company or companies as shall be reasonably acceptable to Lessor, shall provide at least thirty (30) days advance written notice to Lessor of any cancellation, change or modification, and shall provide primary coverage for the protection of Lessee and Lessor without regard to any other coverage carried by Lessee or Lessor protecting against similar risks. Lessee shall provide Lessor with an original policy or certificate evidencing such insurance. Lessee hereby appoints Lessor as Lessee's attorney in fact with power and authority to do all things, including, but not limited to, making claims, receiving payments and endorsing documents, checks or drafts necessary or advisable to secure payments due under any policy of insurance required under this Agreement. 11. Taxes. Lessee shall keep the Molex Tooling free and clear of all levies, liens and encumbrances. Lessee, or Lessor at Lessee's expense, shall report, pay and discharge when due all license and registration fees, assessments, sales, use and property taxes, gross receipts, taxes arising out of receipts from use or operation of the Molex Tooling, and other taxes, fees and governmental charges similar or dissimilar to the foregoing, together with any penalties or interest thereon, imposed by any state, federal or local government or any agency, or department thereof, upon the Molex Tooling or the purchase, use, operation or leasing of the Molex Tooling or otherwise in any manner with respect thereto and whether or not the same shall be assessed against or in the name of Lessor or Lessee. However, Lessee shall not be required to pay or discharge any such tax or assessment so long as it shall, in good faith and by appropriate legal proceedings, contest the validity thereof in any reasonable manner which will not affect or endanger the title and interest of Lessor to the Molex Tooling; provided, Lessee shall reimburse Lessor for any damages or expenses resulting from such failure to pay or discharge. 12. Lessor's Payment. In case of failure of Lessee to procure or maintain said insurance or to pay fees, assessments, charges and taxes, all as specified in this Lease, Lessor shall have the right, but shall not be obligated, to effect such insurance, or pay said fees, assignments, charges and taxes, as the case may be. In that event, the cost thereof shall be repayable to Lessor with the next installment of rent, and failure to repay the same shall carry with it the same consequences, including interest at ten percent (10%) per annum, as failure to pay any installment of rent. 13. Default. If Lessee fails to pay any rent or other amount herein provided within ten (10) days after the same is due and payable, or if Lessee fails to observe, keep or perform any other provision of this Lease required to be observed, kept or performed by Lessee, Lessor shall have the right to exercise any one or more of the following remedies: a. To declare the entire amount of rent hereunder immediately due and payable without notice or demand to Lessee. b. To sue for and recover all rents, and other payments, then accrued or thereafter accruing. c. To take possession of the Molex Tooling, without demand or notice, wherever same may be located, without any court order or other process of law. Lessee hereby waives any and all damages occasioned by such taking of possession. d. To terminate this Lease. 2
5 e. To pursue any other remedy at law or in equity. Notwithstanding any repossession or any other action which Lessor may take, Lessee shall be and remain liable for the full performance of all obligations on the part of the Lessee to be performed under this Lease. All of Lessor's remedies are cumulative, and may be exercised concurrently or separately. 14. Bankruptcy. Neither this Lease nor any interest therein is assignable or transferable by operation of law. If any proceeding under the Bankruptcy Act, as amended, is commenced by or against the Lessee, or if the Lessee is adjudged insolvent, or if Lessee makes any assignment for the benefit of his creditors, or if a writ of attachment or execution is levied on the Molex Tooling 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 Lessee is a party with authority to take possession or control of the Molex Tooling, Lessor shall have and may exercise any one or more of the remedies set forth in Section 14 hereof; and this Lease shall, at the option of the Lessor, without notice, immediately terminate and shall not be treated as an asset of Lessee after the exercise of said option. 15. Ownership. The Molex Tooling is, and shall at all times be and remain, the sole and exclusive property of Lessor; and the Lessee shall have no right, title or interest therein or thereto except as expressly set forth in this Lease. 16. Additional Documents. If Lessor shall so request, Lessee shall execute and deliver to Lessor such documents as Lessor shall deem necessary or desirable for purposes of recording or filing to protect the interest of Lessor in the Molex Tooling including, but not limited to a UCC financing statement. 17. Warranty. a. Express Product Warranty. Lessor represents and warrants to Lessee for the period set forth below from the date of delivery of the Molex Tooling to Lessee that (i) the Molex Tooling shall conform to the Molex specification for such Molex Tooling, and (ii) the Molex Tooling shall be free from material defects in materials and manufacturing. Lessor s sole liability for any breach of warranty under this Paragraph 2.1 confirmed by Lessor and submitted in writing to Lessor by Lessee during the relevant warranty period, or thirty (30) days thereafter, shall be to repair or replace, at its option and at its expense, the defective or nonconforming Molex Tooling to a condition as warranted. THESE REMEDIES SHALL BE LESSEE S SOLE AND EXCLUSIVE REMEDIES FOR ANY CLAIM THAT LESSOR BREACHED THE WARRANTY SET FORTH IN THIS AGREEMENT. Product Applicators, terminators or other application and automation equipment, including machinery, and all original parts that were included at the time of lease, except for parts specified as expendable parts. Replacement parts for original parts, except for parts specified as expendable parts Parts characterized as expendable parts All other parts, products or services not specified above Duration of Warranty Two (2) years The longer of ninety (90) days, or balance of the original two (2) year warranty Thirty (30) days Thirty (30) days b. Disclaimer of Warranties. (i) EXCEPT AS EXPRESSLY PROVIDED IN PARAGRAPH 17(a), LESSOR MAKES NO WARRANTY, EXPRESS OR IMPLIED, REGARDING THE MOLEX TOOLING. (ii) ALL IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY DISCLAIMED. IN ADDITION, LESSOR EXPRESSLY DISCLAIMS ANY WARRANTY OBLIGATIONS IN THOSE INSTANCES WHERE THE FAILURES RESULTED FROM THE MODIFICATION, ALTERATION OR MISUSE OF THE MOLEX TOOLING, OR ANY OTHER CAUSE BEYOND THE REASONABLE CONTROL OF LESSOR. USE OF THE MOLEX TOOLING WITH ANY PRODUCT OTHER THAN THE MOLEX PRODUCTS FOR WHICH THE MOLEX TOOLING WAS DESIGNED TO OPERATE CONSTITUTES MISUSE OF THE MOLEX TOOLING. 18. Indemnification. Lessee agrees to indemnify, defend and hold harmless each of Lessor and its officers, directors, employees, successors and assigns from and against all claims, suits, actions brought against Lessor and its officers, directors, employees, successors and assigns, and any resulting damages, losses, costs and liabilities (including attorneys fees) that result or arise from Lessee s, or its employees or agents, use of the Molex Tooling that allege that the Molex Tooling has caused personal injury or damage to tangible property, provided that Lessor (i) timely notifies Lessee that Lessor is seeking indemnification pursuant to this provision, (ii) permits Lessee to answer and defend the claim using counsel of Lessee s choice and (iii) provides information and assistance reasonably necessary to enable Lessee to defend the claim. 19. Limitation of Liability. IN NO EVENT SHALL LESSOR BE LIABLE TO LESSEE OR TO ANY THIRD PARTY FOR THE COST OF PROCURING SUBSTITUTE GOODS OR SERVICES, LOST PROFITS, LOSS OF USE, LOSS OF 3
6 DATA OR ANY INCIDENTAL, CONSEQUENTIAL, INDIRECT, OR SPECIAL DAMAGES, WHETHER UNDER CONTRACT, TORT, WARRANTY OR OTHERWISE, ARISING IN ANY WAY OUT OF THIS OR ANY OTHER RELATED AGREEMENT, WHETHER OR NOT SUCH PARTY HAD ADVANCE NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. LESSOR S MAXIMUM LIABILITY UNDER THIS AGREEMENT SHALL NOT EXCEED THE LEASE PAYMENTS PAID BY LESSEE TO LESSOR FOR THE MOLEX TOOLING. 20. Headings. The headings of the sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement. 21. Assignment. The Agreement, including the warranty set forth herein, is not transferable by Lessee to a third party. Any attempted transfer by Lessee of this Agreement shall be null and void. 22. Severability. If any part, term, or provision of this Agreement is held void, illegal, unenforceable, or in conflict with any applicable law or jurisdiction, the validity of this Agreement will not be affected thereby except to the extent such provision will be so held void, illegal or otherwise unenforceable. 23. Governing Law/Venue. This Agreement shall be governed by, construed and interpreted in accordance with, the laws of the State of Illinois, without giving effect to its choice of laws provisions. The parties irrevocably submit to venue and exclusive personal jurisdiction in the federal and state courts in Cook County, Illinois, for any dispute arising under this Agreement and each party waives all objections to jurisdiction and venue of such courts. 24. Waiver. The failure of either party at any time to require performance by the other of any provision hereof shall not affect the right of such party to require performance at any time thereafter, nor shall the waiver of either party of a breach of any provision hereof be taken or held to be a waiver of a provision itself. 25. Independent Contractors. It is understood and agreed that the parties are independent contractors and each is engaged in the operation of its own business and neither will be considered the agent of the other for any purpose whatsoever. Nothing contained in this Agreement will be construed to establish a relationship that would allow either party to make representations or warranties on behalf of the other except as expressly set forth herein. 26. Attorney s Fees. In the event that any action or proceeding is brought to enforce or construe any provision of this Agreement, the party prevailing in such action or proceeding shall be entitled to recover from the other party all of the prevailing party's costs and expenses incurred, including reasonable attorneys' fees and court costs, as well as all such costs and expenses incurred in any appeal or in any collection effort. 27. Entire Agreement. The terms and conditions stated herein are the only terms and conditions between the parties with respect to the subject matter of this Agreement. No other term, condition, or provision will apply with respect to the subject matter of this Agreement, whether written or oral, unless specifically agreed to in writing by authorized representatives of the parties. The parties consider the terms of this agreement to be Confidential, and neither party shall disclose the terms of this Agreement to third parties without the written consent of the other party. Accepted and agreed: Lessee Molex Incorporated Signature Typed or Printed Name Title Date Company Signature Typed or Printed Name Title Date 4
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