Fountain Valley Transit Mix, Inc. - Page 5

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          operations of petitioner.  Mr. Pisano also ran the daily                    
          operations of L.A. Premix.                                                  
               The Nikki lease required Nikki's, as lessor, to pay for the            
          replacement of all tires on the trucks it leased to petitioner.             
          The second clause of paragraph 5 of the Nikki lease (the tire               
          replacement clause) stated as follows:                                      
               Lessor will provide at its own cost and expense all                    
               necessary replacement tires and tubes.  Lessee agrees                  
               that Lessee's driver will substitute the spare tire                    
               when tire trouble occurs on said vehicle while in                      
               possession of Lessee's driver and that Lessee's drivers                
               shall not operate said motor vehicle on a flat tire or                 
               tires, or any tire or tires which do not contain                       
               sufficient air pressure to prevent damage to the                       
               sidewalls thereof, other than from ordinary wear and                   
               tear.                                                                  
          The Nikki lease further stated that the lessor was to provide and           
          pay for all mechanical repairs, maintenance, and parts and labor.           
          Petitioner was to provide for lubrication and gasoline expenses             
          as well as washing and cleaning the trucks.  Paragraph 13 of the            
          lease stated:                                                               
                    WAIVER.  The failure of either party hereto in any                
               one or more instances to insist upon the performance of                
               any of the terms, covenants or conditions of this                      
               lease, exercise any right or privilege in this                         
               agreement conferred or the waiver of any breach of any                 
               of the terms, covenants, or conditions of this                         
               agreement, shall not be construed as hereafter waiving                 
               any such terms, covenants, conditions, rights or                       
               privileges but the same shall continue and remain in                   
               full force and effect the same as if no such                           
               forbearance or waiver had occurred.                                    
               The lease agreement which was signed on behalf of Nikki's by           
          Kurt Caillier and on behalf of petitioner by Chris Pisano was               





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Last modified: May 25, 2011