R98-90 ACCEPTING THE Firestone Bid Bus Tire Lease

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. r I � , ` � -4- In the event Operator should fail to make any payment required hereunder when due, fail to use or service tires furnished hereunder in accordance with Firestone's recommendations, fail to report a record of the daily revenue and non-revenue vehicle miles as required in Paragraph 2 hereof, or otherwise fail to comply with any of the terms and conditions of this Agreement, or in the event any voluntary or involuntary proceedings shall be filed against or by Operator under any bankruptcy law or other law for the relief of debtors, or Operator's credit shall in any manner become impaired, such event shall constitute a default by Operator hereunder. Upon the occurrence of any such default, Firestone shall upon 30 days' prior written notice to Operator terminate this Agreement and, upon any exercise of such right to terminate, Operator shall at the sole election of Firestone forthwith return Firestone's property furnished hereunder, or make payment therefor as of the date of termination on the basis and within the time set forth in Paragraph 10 hereof. Upon the failure or refusal of the Operator to return said property, process of law will be required in order to repossess said property. Termination of this Agree- ment shall not relieve Operator from its obligations to make all payments required hereunder or from liability for damages for breach of this Agreement in accordance with the terms thereof. Without limiting any other provision hereof, Operator specifically agrees that it shall be responsible for and pay any and all attorney fees, court costs and other expenses incurred by Firestone in collecting amounts owed by Operator hereunder or enforcing any other right under this Agreement. Failure of Firestone to terminate this Agreement as herein provided on any breach by Operator shall not operate as a waiver by Firestone of its right to terminate this Agreement as herein provided upon any subsequent breach by Operator. 10. TERMINATION--Upon the termination by full performance and expiration of this Agreement, unless the parties enter into a new Tire Lease Agreement to become effective immediately, Operator will, within 30 days after termination pay for the unused mileage in each remaining tire on vehicles, in Operator's garage, in process of repair or retreading, in transit or in stock, that have been assigned by Firestone to Operator's fleet in accordance with the provisions hereof. The remaining mileage in each tire shall be prorated by determining the percentage of useable rubber remaining multiplied by the fixed cost per 32nd of rubber remaining. CONTRACT FIXED COST PER 32ND ORIGINAL USABLE RETREAD AVAILABLE TIRE SIZE COST/32ND 32NDS COST/32N� 32NDS 12R22.5 $14.49 25 N/A N/A Example: Original tire is 50$ worn or 13/32nds remaining 13/32nds remaining x $10.00/32nds = $130.00 When a tire is not available for inspection to apply the above calculation(s) whether lost, stolen or otherwise missing, or destroyed by fire, or involved in an accident, reimbursement shall not be in excess of fifty percent (500) of the current value of a similar tire, unless Firestone can provide an auditable accounting of the tire' s accurate mileage just prior to the loss.