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Home My WebLink About2000 Ordinance No. 071• • ORDINANCE NO. ']j_ SERIES OF 2000 llY AU'fflORITY COUNCIL BILL NO. 78 INTRODUCED BY COUNCIL MEMBER WOLOSYN AN ORDINANCE OF THE CITY OF ENGLEWOOD, COLORADO AUTHORIZING AND APPROVING THE LEASE-PURCHASE OF NE'IWORKING EQUIPMENT FOR THE CITY AND PROVIDING DETAILS IN CONNEC'l'ION WITH THE LEASE - PURCHASE OF THE EQUIPMENT. WHEREAS, the City or Englewood, Colorado (the "City"), ia a home rule municipality of the State of Colorado (the •state") duly organized and operating under the Home Rule Charter of the City (the "Charter") and the conltitution and laws of the State; aod WHEREAS, pursuaot to Section 30 or the Charter, the City Council or the City (the "Council") baa all municipal legislative powers ae conferred by general law , e,<ept u provided by the Charter; and WHEREAS , on May 1, 2000, folJO'll'ing the competitive bidding prooeduree ... t forth in Section 113 of the Charter, the Council appro....d a contract with NEC Buaineaa Network Solution , Inc., for the ocqniaition al certain Ciaco networking equipment (the "Networking Equipment"); and WHEREAS, the Networking Equipment baa been inatalled and ia operational; and WHEREAS , pursuant to Section 31-15-101 of the Colorado Revised Statutn, the City baa the power to Jeaae-purcbaae personal property and the Council deaifts to spread the coot of acquiring the Networking Equipment over a live-year period through the lea..,•purchaae of ouch equipm ent; and WHEREAS, the City hao advanced funds tor the purcbaae of the Networking Equipment in anticipation of financing the ae<~uiaition or the Networking Equipment by leaae-purc!ulae ; and WHEREAS. the City haa received a propooal from Sutro & Co., Incorporated ("Sutro") to effect the Jeaae-purchaae o~ the Networking Equipment at a net elrective rate of 5 .92% per annum, aa more full y aet forth in a Master Leaae Apeement (the "Leaae Agreement") under which the financial obligation of the City shall conatitute currently budgeted expenditursa of the City; and WHEREAS , the Council ia deairoua of authorizitg and directing the tranaaction deacribed above; NOW, THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO , AS FOLLOWS : . I. Section 1. Annrnvel of Cooveva.DGC of Notworltina Eou~-The City Council hereby approves of the sale of, and conveyance of title to, the Networkin1 Equipment to Sutro & Co ., Incorporated, for the amount of ~378,761.00, (which amount rei.mburaes the City for funds which the City has advanced). The City Council hereby determines and declares that the fair market value of the Networking Equipment is $378 ,761.00 and such amuunt represents feir and adequate consideration to the City for the Networking Equipment. Sect.ion 2. Annrnvul of l&AM Amement . The Lease Agreement, in substantially the form and with substantially the content presented to this meeting of the City Council, is in all respecte approved, authorized and confirmed . The aggregate principal compon ,nt of the Lease Agreement does not exceed $378 ,761.00 . Section 3. Execution ood Peliverx of Poeumente -The Mayor or, in the •bsence thereof, the Ma)or Pro Tem is hereby authorized and directed to execute the Leue Agreemenr, and the signature of the Mayor or Mayor Pro Tem aball conclusively determine the valid execution of the Lease Agreement by the City. Additionally, the Mayor, other officials and employees of the City are her ••by authorized and directed lo execute and delivar for and on behalf of the City any and all additional agreements, certificates, documents and other papers and lo perform all other acts that they may deem neceaaary or appropriate in order to impleml!nt and carry out the transaction authorized and contemplated by this Ordinanc.,, including but not limited lo an Internal Revenue Service Form 8038-G . Section 4. Peclarationa end FiodinKB-The City Council hereby de termines and declares that the rental payments under the Lease Agreement (the "Rental Paymentai represent the fair value of the use of the Networking Equipment, and that the Prepayment Price (aa defined in the Lease Agreement) represents the fair purchase price of the Networking Equipment. The City Council hereby determines and declares thg,t the Rental Payments do not exceed a reasonable amount so as to place the City under an economic or practical compulsion lo appropriate moneys to make paymente under the Lease Agreement or to exercise its option to purchase the Networking Equipment pursuant to the Leaae Agreement. In making aucb determinations, the City Council baa given consideration to the current market value of the Networking Equipment, the coat of acquiring, constructing or equipping property similar to the Networking Equipment, tha option of the City to purchase the Networking Equipment, and the expected eventual vesting of full title to the Networking Equipment in the City. The City Council hereby determines and declares that :he duration of the Lease Agreement, including all optional renewal terms, authorized under this Ordinance, does not exceed the weightad average useful liCe of the Networking Equipment. Section 5. B1nk -Q•11lified Determination-The City hereby designates the Lease Agreement as • "qualified tax-exempt obligation" for purpooea of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended . Section 6. Obliretione of the City . No provision of this Ordinance or the Leas , Agn,ement shall be construed as creating or constituting a general obligation or a multiple-fiacal year direct or indirect indt~tedneaa or other financial obligation whatsoever of the City nor a mandatory payment obligation of the City in any ensuing fiacal year beyond any fiacal year during which the Lease Agreement shall be in effect . -2- .. i • • • Ill') • Section 7, Ratjfti'ltjgp g( Prior As;tign•. All ac:liona heretofore tabn (Dot incooaiatent with the proviaiona of thi1 Ordinance) by the City Council ar by the oflicere and employee, ol the City repnllnc !be 'acquisition or leue-purchua of the Networkiq Equipment, or direclAld towud aatiafactinn of the City'• obllptlooa under the lAue Aareament, are hereby ratilled, appNiffl! and confirmed. Section 8. Stnmhjljty. It ia henby upreaaly decland that all proviaiou hereof and their application ere intended to be and are severable. In ~1to implement IIICb intent, if aDY provleion hereof or the application ~ ia determined by a court or adminiatrative body tb"lle invalid or unenforceable, ln whole or in part, euch determination ehall not affect, impair or invalidate any other '• provieion hereof or the application of the proviaion in queotion to any other eituation; and if aDY provision he!'OOf or the application thereof iJ, determined by a court er administrative body to be valid or enforceable only if ite application iJ, limited, ita application shall be limited u req~ to moo~ full,)I implement ite plll'])Ole. Section 9. 1l.cilulu, All ordinancu. q,-parto thereof, inamaiat&Jll .!!! in conflict herewith ere hereby repealed to the extent only of such inconliltency ar conllict. Introduced, rend in full , and paued on firat. reeding OD the 16"' day of October, 2000. Publlehed as a Bill for an Ordinance on the 20th day of October 2000. Read by title and passed on final reading on the 6th day of November, 2000. Publlahed by title as Ordinance No .f/L Series of 2000, on the Ill"' day of November, 2000. I, Loucrishia A. Ellla, City Clerk of the City of Englewood, Colors do, hereby certify that the above and foregoing iJ, a true ""Ill( 9f the Onllnance aaoed OD fulBl reading and publlahed by title as Ordinance No . './I... Se · ea of 2 . -3- i r I ~ ~, f i• 1 t-i -"!if( ii~ !Ii~ r It t ,~ t t It! i ~r; ii !i ! it ii~ i { i { i ! ~ i (a.,~ ! 1!· ' ' la l ~' i a I ! I ~· I i ( I It-,-J { li f I~ i t t R~ ~ Rt i' Nl f g ! [ f i ffl ~ • ~ i i f ! i f.; I;! r i t l I I I i -~ a I I r .J f. i sf f f aJt I I J f 1 ~ ! f tf J I I !f ~ f ii l It 1 i ~ ~ I f J ~ ~ I jf ~if ! ' 1!} Hh i! H i i ti ;! , ,q P d It J. 1 111 1 • I 1 1 h r l !f ; 1-f 1t11 1 I r1 1 If l , I rt~ , ~: 1-. ! f. ~ti . 8 I ti i I ! I J i _· i 5l I I~ l i ~s l f ~ ~ ll ! , , j I n [ 1 , i ; . . . i1 i I-i I 11 ! I I ' ', f1 • s-~ 8 a· !! l j J J f a·i f i l • I f. • l a-r-1 I ~ ! I,· • IXJDaff A 1 IQ~~~.~ O~ I l' Tbo followiDg Equipmall camprisos an Equi.,-Oll,ap wbicll Is the subjec:t oCtbe Maler I.ale A.,-dalld • oCthe 6111dayafo.o.ller, 2000(dlo"A.,-").,._dloandniped1-llld1-. The ~iliBcarpaladbllea111ill ealimy, 1111d 1-bad,y ralllnmmcb afill ...,._iatiom, Wlnaalics and QMllllllllc:allllinod in the~ i.--- thal no Non-Appropriatioa and no E-of Dcfnlt, or IMIII whicb, with the JIISII&" of lime or the pvinae· !Jol,b. wmdd Cllllllllatelli~arDellllllt, lmaocaned\amthc ~ All Aa,q,1111C10 Cenfflc:1111: and Payment . ae~lltllil Equipmml Scbedalc 111d by rofamce an: made a p111 hoftof. The tenm capi111lzed in 1lds l!qul..,_ Scbodale DOI cldllled belan shaU have the IIIOlllings assigned 10 them in tbe Agreemen1. IQUIPMINT CROUP 1bc a>s1 al the Equipment Gn,up to be funded by Lessoo under thiJ Lease is S378,761.00 (the "Aajuisition COIi"). Tu: Equipmem Group <XJIISisls a( the folkrwing Equipment which bas been or shall be purthased liom the Vcndol(s) aamod below for the prices ICI lilllll below : (w-atloo,battacbedbefflDJ Tbo EquipllOIII Gn,up is or wil' be located at tbe fbUowing addrCSl(cs). Prior to mocation of the Equipmcnl Gn,ap or any ponioa tbcnd clming the Lease Tenn, i. ,,_ will provide wrincn notice 10 Lessor: -tiy: Name-, Thamas=-~Bmns- Tdlo: MMr .A>-.:--------- Admas: IOOOEaa)ewoodl'albay ~COIK>II0-2304 TelqJhooo: 303-762-2300 Facsimile: 303-789-112.S • 0:.1'll0.01 1000 El,clow,,._--, Puilway lllpwood, er, '!0110 13 S,.tn, & Co. lllcorponled. Lessor By:---,,-,---,-,-,,.....--,----- Namo: Edward w Bmucb Tdlc: SenjorVa;Pmidcl!I O.: _______ _ Adlll=: 165 s...11 Union Boubard, Suilc 450 l..ako-,d,COIK>228 Tdcphooc : 303-983-5800 Facsimile: 303-983-6300 • 111cvnciiV,Ae&oV11Wna ~AGllEMENT µ.u&NllMBlllOl IN WITNISS WIIDIIOP, i_... i. ~ lhia Ape!=i ID be emi1011 in a a,qDW _,. by a_.~ allialr, aal 1-bacallld lhis ~ IObe...-.1 inila ,_. by ill claly llllllllizlldolllccr. •By: __________ _ Name: TbggmJ!uJJA T'Jllc:MMr .,Dale:. _________ _ Addrm: IOOO&p,,oodl'l!ltwly Eaglcwaad.COBOIIO Tdq,bone: 303-762-2300 Faaimilc: 303-789-1125 IQ-IICJ)OC.Jtlnllt;Yll( m,.:n:no.ot 12 Smv.tco.i..,..-. Laaor By: _________ _ Name: E4Rd w l!mgch T'dle: Segjor V,ce Pftljdont Dao:. _________ _ Addmn: 165 Soulh Uaion Boule.ard, Suilo 450 1..-MJod, CO 80228 Tdcpbone: 303-983-5800 Faaimilc: 303-98U300 ....... IM.,....,.___,......,_ 1-111111-.... dlll..,wtl,llalllllllli-. ------dolhll,•1-.. be~.,.....,._ ......... __ ............ • • ._•may........, be n,qalnd Ir cana:11111111Y ...... • lalllnlCI .._. i# 1111 -----_,,,,lad« amd,d., .. be,arliradlcnrilecan,ingaattboe,q,,mal .....,clllilA..-, .,, I Socllla117. C-,.&«'lllil~allbe.,......,, ... -.inmlllllll•t11t11w1c1111es.. ... Ill. Jan.It ii Illa ...... "'* plflila..., .. ....., ... 1111 ........ -r laws; amdlaalY, it ii..,_ llla,arll •• ...., ............. _,,-.,.,<11inay~Sd11Mt,ia111-.Mllil'~<11111Y1- lllftaadlrreqaire lhe pl)'mml arponnil Ibo oollocliaa cllalmslara,y-■ IIID-cl...._<11 .. ■-c1111e ..i- -p,m,illod by ~ law. NJy IIICb ema ,_ ar m all llnl be ...,iia: .. ndaoe Plindiiol ..: wbm Ill Principol ....._....., .. ::-. lllcllloimiaimg......,_lho,_poid<11..,.,..axamtlllebigPallwllll .... dlolllll-cl .._allbe,pmlhraallllllt~1-Tam.,lllathor.i.is1111ibmdlloapa:btam. Secdaa t". l&M'• ...,__ A .liiluro ar dday ml..ear to c::uba: any mtbo pnwisiansdtbis ~ arany t..me IMl!illm>waybe.Dlllnled .. bea....,mu:llpn,rilia 5ldlla 11tt. Wm ,m TIW 1-..: ~ had,J WIM any dpl .. llial bJ jury ialll)' &Clloa ar pnx:,eoding with 111p11111,ill-..willlar..,.caatldlil~ ptl!MAINDEROFPME LEFI' INlE'mONAU.YBLANKJ IOIEDOC,ltltllllnl ll CD-1SIII.DI ... : • aa:aoiaaod by 111Cb r.--,,,. If the i;......,. or 111Y pardoa Im baoa.....,,.i. 1-ail 1111 the ....... ~ Price~ dlt....,,.i~••bdliallle,..~Sdmule. ~ollbeli:ltbll1-la1111D ....... d1l'.c ~1-allClllllilu•be ......... tJrtlleR.al~adllliaglbePIICIIY•. (c) lf1-...,,._ Ibis A.-lll/J/or IIIY Le. ·and.in III dilcnlion, labs~ and m..,... dany or all dthe Eqaipmm11, 1-sball lll'PY the .,.__ ol 111Y u:11 dilpclliilll IO i.., Ibo fallollilla ilam in Ibo tilolrina onk (i) all am (mr:ludin& boa DOI limited ID, aalllmeyl' l'eas) iDcumd in maing poaaian cflhe l!quipmclll; (il) all c:xpemcs incumd in c:ompleliDg the dilpaliliaa; (iii) IIIY sales or tnlllllilr -(iv) the applicllllo ~ Prices cilhe Eqaipmd ~ ad (v) the llllmoe ol my a...i Paymaa owcc111y t...e cm111 tho F'a Ym dim in 6a. A1'f dilpJlilion pnxm11 RllllliaiDl .,the~• C-(i), (il), (iii), (iv)and <•>'-'--all bepoil•1- (d) Lessor may ... 118)' other ......,, IVlillblc. II law or in equity, with lapecl to such ~ ol Ddaill, illcludiDg - roquiring Laoce 10 perform any cf ill abliplialll or ., poy any mane,s a ml payable 10 Lmor ml Lcaoe shall poy the l'C8IDlllblo axncys' rm and c:xpemcs incumd by 1-in enbtinc my l<IIIOdy hcramdcr. (e) Each oCtbe furegaing n:mcdies is annulalM ml may be enf0llzd IOpllllOly or CllllCllll'OIII- Socdoa 12.3. .... .-rmirnrE: Sta;: i-'• JMrpl Upca e,q,inlion or tonninlliclll cf any Lease prior 10 the P8)'llll:JI ciall relalal RaltaJ Paynau or die 8AJ1ic:ab1e Pr,:poymo,l Price (wlmer • nomll ci~or E""11 oCDolalt), Lessee shall. u,jec:t to Soctiom 3.2 ml U. within Im (10) days after such lenDinllion, II ilS OW11 expeme: (1) perform any testing and ,q,ain n,quiRd 10 place the ttlalcd ~ in It•: ClllllliliDn req,ia,d by Article VID; (b) If d-.mstallalian, clismeDmly or alliJlg is "'(llin,d. cause such llquipmenl 10 be deimllllal. ~ ml Cnl<d by en audloriml llll!llli,cturos lqftilOlllalive or such other !IOl\'icc penoo IS is Sllisfadmy to Lessor, and (c) 1<111111 such Equipmenl 10 a locali0II within the City limils o( the Laoce spocificd by Lessor, fteigll and imunmce prepaid by Les!ee. If I..-n:lboc,-10 ro111m such Equipment in the manner closigidal. Lmor may :!"' F.quipment wiu... demand or DDlice ml wilhoul aJUII Older or legal pnxm ml charge Lessee the alSIS oC such. Sectloa 12.4 .l.m.9lm, Lessor shall ha\'O the ri8J,t 10 rcquiro lale payment charge for each RaltaJ or any olber amount due bon:undcr whicb is DOI plid within 10 cloys of !he da1I: whell due equal 10 the 1-r of 5%o(c:,·b lalt payment or the 1egal ma.'limum. This Sa:tian is only appliclble to the IOQml it does DOI an.ct the validity o(this Agreement. Al ,-.LEXDI MISCELLANEOUS PROVISIONS Sectloa 13.1. rl!!!m.AII written DDlices to be given under this Agreement shall be given by mail to the Jml)' entitled thereto at ils addn:ss spocificd beneath each Jml)''s sigDIIUl'O, or II such addn:ss as lhe Jml)' may provide 10 lhe other ponies hmto in writing from time 10 time. Any such DDlice shall be <l=ncd to ha\'O boon rm:iYCd n hours att.r deposit in lhe Ullital S4atcs mail in "ogistmd or catifi<d farm, with postage fully prq,aid, or. If given by other means, whell dclivmd at the addn,ss spa:ifiod in this Section 13. ,. Sectloa Ill pb1tz Effeg This Agn,emeut and each Lelle b=mdor shall be binding upoo and shall inure to the benefit o( Lmor and Lessee and their rospoc:li\'O sua:csan and assigns Sp,ciflcalJy, IS IIIOd herein the term "Lessa(' means any penon or allity to whom Lessor bas aaign<d its righl to RO:n'O RaltaJ Paynau under any Lease. Sectloa 13.3. ~In the e\'OIII any pn,vision of this Agreement or any Lease shall be held inwlid or unenfon:m,le by my IXlWI o( oompetent jurisdicticn. >UCh holding shall not invalidae or Imler unenfon:able any other provisioo hereof. Soc1ioa 13.4. Eadre Agmma,t; _....,,,........ This Agreement constitl .:s the entiJ< ..,...,,..i o( the parties with n:spect to the u,jec:t matll:r hereof and --all prior and a,ntanponnoous wri1ings, o.ndentandinp, --solicitation documonts and .... --........ "' impli<d This Agreement may be amended "' modified only by Wlltteil documents duly authori,,cd. """"""" and ddh-eral by Lessor and Lessee. Sectloa 13.5. lJR!i!!!!!._ The Clpliom or headings in this ,weement are for 00IMDienae only and in .., wr, define. limit ... deocri>e the sa,pc or intenl of any provisiom. Anicles. Socoom or Clauses hereoC IQ,PC.DOC,16'17t'OO'OK 10 ~'7')20.01 • 'llE EQUIPMENT OR A DEAU:Jl IN SIMILAR EQUIPMENT, AND DOES NOT lNSl'l!CI' 11lii EQUll'MENI' IIERlRE DliUVEJlY TO IaSEE. U:ssal MAKES NO WARRANl'Y Oil REPIU!SENl'ATION, EmlEllEXl'IUiSS Cll lMl'LIED, AS TO 11E VALUE, DESION, CONDmON, QUAIJl'Y, DURAIIIUIY. SUITABIUIY, MERCHANJ'·AIIIUIY Oil PTl'Nl!SS POil ANY PARI10JLAR PURPOSE OR FITNESS FOR 1llE USE CONIEMPLAlED BY LESSEE CF 1HE EQU4'MENI', Oil ANY OIHlill REPRESENTATION OR W ARRANl'Y WJ'J1I RESPECT TO 11IE EQUIPMENI'. IN NO EVENT SHALL LESSOR BE UABU; FOil ANY INCIDENl'AL OR CONSEQUlil'1l1AL DAMAGl!S IN COHNECl10N WIIH OR AIUSINO OUT OF TI!IS AOREEMENT" OR 11IE EQUIPMENT OR I.ESSEE'S USE OF 11IE EQUIFMENT. AlmCLEXI ASSIGNMENT AND SUBLEASING Sec1m II.I. ,..,....,. h• Lg,or l.ea>r, withola l.cm'1-. may .,;gn and......,, all or imt clLaa's rip!. tide m'ar illlcRst in and ID Ibis Apm1C111 or any l..eaoe, including, but 11111 limital 10, the Rmlal l'lymmls and otbcr 3IIIOIIDII pey,blc by 1-al Lela's ialllat in Ibo E.qaipmem, in whole or in imt to cno or ..,.. a,,ignees or --.-,(1) by Lela a my lime. No suda .........,i shall be c11a:tM as apiml IAloc llll1'ls and Ulllil wrilleD 11Db00 cl Ibo .......... is pnwidod ID l .. .,_ What ....... wilb a 11Db00 rx llli....-, 1A1oc will ac1imw1a18o ia wliling rca:ipt cl such 111DZ 1i1r Ibo bale& cl Lela ml ID!' 1<'4..,,... J..-sblllmpacmplcleandaa:lllllllOiecmdrxallsuc:11......,... Seclla 11.1 t I ; 711 s, ........... by i,.,e Nci1ba: this~,.._,, Lem or any Equipmonl may be mgml. !Ubloaood. sold. tnnsfcrnd. plcdgal or mortpgllCI by Lcssoc. All11CLl:XII EVENTS OF DUAIILT AND IIDIEDW Seclla 111. t.... a( D<(Wflt Qdwd.1bc cxx:unm rx any cl the following ...,.. .all --an El...-cl Ddailt IDlordis Ap,:ma!land cad> I.me; • (I) La5oc's liilutc ID pay, within im (10) days lilllowing tllo duo dare lhlno( aay Raal J>.qma,t orotbcr-n,quin,d 11> be pllid ID l.mor (Olhor than by ""'°" clNou-Ajlpropriitioni (b) .......... liilutc ID mainrain UlilllllD0C as requind by Al1idc VIL (c) W-1111 Ibo c,a:eplion cl lhe ai,o,,: clauses (a) &. (b), Lcsaoe's liilwo ID p,:mm <-.c abide by any aJOdilion, ..-,-0< CIIMmm for a period of thirty (JO) ~ after written nolia: by Lessor to lc,soe specifying such flilure and roquo,ting that it be remmied. .... Laa shall agroe in wliling Ill an c:m:nsiorl cl time prior ID ilS c:,q,inlion. (d) Lesu's d<lennination that any n:prcscr,lalion or "3rr.mty made by lc,soe in Ibis Agroemmt was UDIIUe in ID)" maerill rapoa ~ c.uculiort of this Agn,cment or any Equipmc,1 Sc:lmik (e) The oa:um,noe of an E,-.m ofTaxability. (I) The filing cl a pdilioo in banlaupccy by or agaiml Lea,e, ar liiJore by lc,soe pn,mplly ID lift any =itioa. ~ or aaacbmcnl rx such con,oquencc as would impair tho ability rx Lcsoe 10 cany on its g<MIIIIIIOlllll fimcliom or assigmma by IAloc for a. bmdit cl aeditars. or Ibo alllY by J..moe illlo ., """"""" cl a,qx,,ilion wilh aalilDrs, cw tho appnwal by a COUit rx oornpet,nt ;.;.ticlioa many adjullmont rx~ cll..csloe, or lhe dilllolulioo or lilpdllion rxLcsoe. Setlioa 11.1 ...,..., ... 2P Q<fwb Upon Ibo oa:.inma: cl any EY<III rx Ddimll. Laa shall hl>-e Ibo rip!. at its option and ,..-my funber demand or notia: to one or mon, or all of O,o lilllowing ratlldics; (a) Lalor, with or widn4 taminaliDg this ,.,,_ or 111y ~ may -. all Rclllal Paymma immalialdy cb: and ~ by l..csloe, ~ such RCIIII Payments shall, 51qoct toSecticla 3.2 and 4.2, be iznmodilloly en al payable. A (b) Lcssor. with or without taminating this Aa,oe,ma or any J..eaoe, may n:pos,csa any ar all rxthe Equipmmt by IIMIII IAloc ..,_ lllllice ID dclnu such Equipmeat in Ibo lmltlD' providod in Scaion 12.3; or in Ibo.-i.-liill ID do., Mtbia lCD (10) ~ 11s,... cl 1111:b aolice. 1..es1or m."')I....,..., i.-·, p1m1011 w11= such P.qaiiamll is lalpt ad• pca,llilm rx mcb e....-111d cbqo !.essee for --i'ICUIIOII, including ,___ -..ys' .. '--....,, ....-Y ...... .., daap IQ-D:..DOC.tft111t"m. 9 CD-ffl211.0I .. ,' • J:qaipaM. l..eBlo sboll 1111 be n,quin,d to poy any iedoral. !Ille or local ina,mo, tua:mim. llllldcr. Cra:llilo, pnllll. -pn,111. ...,i !IDll. pm na:ipll. a,rpma. or Olllor 9lllillr 11x poyalllc by tca,r, ill__, or .... ualca adl 11x is .-ID• 1 Mlllitla 1br -,y tax. -or chqe which is lhc abliplion of Leia under this Seaian. All obli ... of Ille i:.-_..,, dis 9oclimi lhlll be ldlja:t to SeC1ions 3.2 and 4.2. Seclioa U. ~ 'iul,ject to Seclioos 3.2 and 4.2, if 1-!11111 liil to perform any of ill obliplions under Ibis Ai-, l<s!or 1111)' lake such actioo to auc such l'ailUlc, including lhc advana:mmt of monoy, and 1-sllall be ~ IO rqJIY all IIICll adYanca 011 demand. with -al lhc -of lllo/, per annum or lhc llllllimum 1311: permiacd by law, wbicbMr is less. frnm lhc dlle of lhc adwncc to lhc da&e of rq,aymenl ARTICLE IX TnU: Secdoa 9.1. ~ °'1nlonbip and lepl tide of all Equipmenl and all rq,laa:ma11s. sulllliliiions. repain and modillaooa """11 be in lhc -of tca,r and L<sloo sba!J like all a:lioll ........,,, to -such ownonbip and tide in lhc i.-. I.mar has owanhip and lepl lille IO lhc <quipmcnt IDidy b pui:.,oos ol<lllblishing I ID0llg,;ge in the Equipment po..-10 Sec:lioa 9.2, and by this A.,- 1111 each Leise, is mady finlDci:Jg lhc a:ipsilioa ol such ~ fur Lcaoe. Lmar does 1111 ..,...... aJlllnll or 111,e poallion of lhc Equipmcnl and has 110 CXJlllnll 0\-er the Lc:ss,c or lhc Lcso:'s operalion. use. SIOnge or mainlcnanoc of the Equipment. In the event of aaignmoat by die r..-of die Raa1 ~ and 0111or ...-due ,...,, this 1..eooc, r..-s11a11 cmmnue 10 hold title to the cquipmenL Lcssor sl!alJ ooluy Lc:ss,c specilically with rospcct to any transfer of legal tide to the Equipml:nl. Secdoa 9..2. Sgrity 1!!m!1 l.c!soe bcrdJy g131115 to Lmor a axllinuing. tint priority pcrfcacd security iDlcn:SI in and to the Equipmalt and all rqllils, replacaneols. smslimlioas and modificalions tbofflo in order to m:,ue Lcso:'s payment of all R.cmal Paymmts aad die por1bmmce ol all odlor oblipliom. Lesaoe will join with Lela in e.,ocmng such llnancing _, or olhcr documents and will pedi,rm such aas IS l.<SSor may roqucst IO CSlll>lisl, and mainlain Lasor's valid Ml lien and perfoclal toCUrity -If .......... by L<ssor. Lmoe sblll obtain a lmdlord and/or lllllltgaFO 's CXlllltlll and Mh-er with rospcct to the Equipment. If~ by Lessor .• LmDc sllall lXJlllllicmllly 111111< Ille Eiµpmem. and mainlain such lllllkings ,bing the Laoe lam, to c:larly disclcoo Lessor's security inlaest in the F.quipmod. Upon 1tnDination of a l.aL,c through cwcise o( Lesaee 's option to pq-.y .,.._ 10 AJlicle V or through poymmi by Lesaoe or all Rcnlal Payments and olhcr amounts due with rospec1 to an E<p•ipmenl ~ l..<'51Jr's ocauity inlen:st in such Equipmalt Group sball terminalc. l.<SSor shall ClltCIIIC and deliver IO l..esce such documents IS may be not-,, to Mdorla: transfcr ol litlo in u:h Equipmalt Group to Lcaoc, and Lasor sball ......:utc and dcli\-er to Lesce such doauncn1s"" ,....,.. may rc:asoaably r,:qucst IO ovidmcc lhc 1l:llllillaion oll.csmr's-.ity inlmsl in u:h Equi.-,-Group. s«tioa 9.J. Modiftcalioa of Fqnl......., I "SllC< will oot. wi1hout the prior writ1l:n COll9CIII of l.<SSor. affix or imtall 1111)' accmory ~ or device 011 any al the Equipmcnl if u:h addition will change or impair lhc originally imcnded value. funclion or usc aflhc~ Sectiaft 9.-1. Pmonal Pn,p,rty The Equipment is and shall at all times be and r,main pcr,onal property and oot 6.'CIUIOS. ARTICLEX WARRANTIES Sa:licll 10.L Sp,cde o' .,...,.,..., Each Vendor and all of the Equipment 111,e hem ,elcclod by Lcsm:. Lasor shall !rave no raponsibilily in IXJllDOt:tion 1>ith the scloc:tion aflhc EAp,ipmc,11. th< onlcring oflhe ~ its suiability for the mc inlmlod by I= the aazpllnCC by any Vendor or its sales rcpm,crlUIIM of any order U>millal. or any delay or fiailurc ti)' such Vendor or its sales rqmemmi\~ IO manufadurc. ddn-er or imtall any Equipmcnl fur USC by Lcs,ec. s«tioa •n 2. Veador'1 Warrydq l..tmor hcrd,y assigns 10 Lc:ss,c for and during the rdaled Lease Tenn. all of its immst. if any, in all Ve1'lDr's ..amnlics. _...... and pm,111 indemnity prom::tion. e,qrrm oc implied issued on or app1ic3b1e to an Equip!M11 Group. and 1.,......., ru,ry obtain tbc CDa<xnaJY mvia:s fumishod in connection ..;th ,uch wammtics mid guanmcr:s at i.......·s c.oq,c,,oc. L<ssor has no obligatic 110 cnfo= any Vendor's warranties or obligations on bcbalf of itself or Lcsscc. Sdoa If.} P!rr'..,... '! w....,.. LESSEE ACKNOWLEDGES lllAT lllE EQUIPMENT IS OF A SIZE. DESIGN .• CAPAC'IY. AND MANUFACTURE SEU!C1ED BY LESSEE. LESSEE ACKNOW1£DGES lllAT IT SELEC'lcD nlE EQUIPMEKT WTTIIOUI' ASSISTANCE OF LESSOR ITS AGENTS OR EMPLOYl!ES . LESSOR IS 1'IOT A MANUFACTURER OF Secdaa 7.l. Wod!m' Qnnrn'lr! !wrws lfrequinxl by SWc law, Lmce shall Qllt)' """""'' a,mpcllllD0II ,.......,. CIMrillg all cn,po)'IICI an. ill. -or ... tho~ 111d upon nquest, sball l\Jmim to Lesaor c:ertificas eridenclng IIICb .. ....,. llaaapooa lhe 1-Tcim. Secdaa 7.J. J.-arws Rm,;1 (a) IMJtllfCO Poltcit,, All inmrance poliaol requinxl by this Arlide shall be lllcen out 111d mailained with imullnce ........ ....,.._ to Lag and sball ~ 1 pruvm011 Iha llliJly (30) dlys prior to any chqe in 1he """'IF I.be illlurer- pn,wide wrillm nolic:e to tho inmnd pnes. No in!unnoe sball be u,jea ID any aMflllllllllCO dame. llach.....,. policy sboll IIIIIJO laoor am'or its ISligm as III addiliallll i-..1 pony 111d lea poyec r<pnllcll ti ,my hr'8Ch of WlfflllllY or odler 112 or omi11iD1t d l..meo :md shall include a lender's lea pl)'llblc c:ndonomcnl for tho bem:lit dl.esscr and.'or is assigns. Prior to 1he ddn"')'d...-. i..meo sball cl,polit .,;th Leslor evidenoe .aillaclory Ill lessor of such insurance and, prior to the e,q,inlion lhereo( shall pn,wide lessor ewlmooofall.......,.or~sl.llam'. (b) S./f /"""'1n<%, Widl ,.....,., prior CXll1ICIJI. l..csloe may ,etr-insw,, the Equipment by -of an adoquale insurance fund .. -and mainlain<d for that pupooe which IIIU5I be fillly caaibed in. Idler ddMrld to Lesser in fiJnn aa:q,table to Lesaor. (c) Ev/dtnc, of Jns,,rana . u:ssoe shall ddnu to Lesaor upon accq,Wl0C of Ff Equipmont evidenoe of inulna: ,micb a,mplic:s with this Article vn ..;th n:spt<t to such Equipment to the .-. of Lessor, including, without limitation. the ccnlinnation d __,.,. in the fiJnn of E.'Cllibit F-1 alllCbod IK.r<lll tog<lbcr with Cerlilkatm of'""""""'-"mt awilable. or tho Qu,sliom,aim for Self-Insurance :md Addendum to EquipmC111 Schalule Rdaling to Sdf.Insunu,ce in tho tbrm dExhibit F-2 llltaChod bcrclo. IS ll'Piicable. Soctiaa 7.4. Bilks!la, To the C<ll:Jll pcnnitted by ai:pliclble 1,rn, of the SWc IS_, Lesscr and I-=. Lessee assumes Ill risb ml lilbiJilies m,m any CIIIIO wboaoo\..,., whahor or not -by insurance. fi>r loss or damage to any Equipment and for injury ID ordoahof anypmoa or damage to any property. This..,,.._ shall um,. tho taminalion of this Agn,em,m. • Sodiaa 7.5. Dgtn,ctioa of Eqljppm t...... shall provide a oompletc writtat lq,ort to Lesser immodiatdy upon any loss, tbdl. damase or cli:slndOII of my~~ 111d of any aa:idcnt in¥olving any ~ Lessor 1111)' inspoct the Equipment• any limollld from time to timecbing iqullrbasincss b:us. 5111,ject in all..,. to Sa:tion 3.2 and 4.2. if all or any pan dthe Equipment is !IOlen, lost. dcstro)ul or damagtd beyorMI rq,air il>amaflOd F.quipmenl"), Lese shall ..;thin thirty (30) days after such O\'OIII either: (a) n:placc tho !lllJ10 at l.t:sscc's sole c,q,cn',, ,.ith oquipm<nt hlvillg -.matly similar Specificalions and of equal or gn:ncr value to tho Damagal Equipment imm<diatdy prior <> the time of the loa OCICllllalllO. IIICb ~ ar,,ipm,111 to be uja:t to Lmor's 8Fl'ltJY3l ........ u:b iq,lacallOlll <quipna,I sball be sullaiuod in tho...,ikllJle Lc,se and tho od,er rdatal documonts by appn,priale .....,_or~ or (b) pl)' the appiclble Plq,oymmi Pria: of tho Dlmagal Equipment delerminal IS ,ct forth in 1he rdatal Equipment Sclmile. 1..cs1oe . :. ·1 ll0lify Lesaor of Mlidl"""" of action it will IJb, within liftoen ( 15) days after the loss occumncc. If; wilhin forty.five (45) day, ofu.. ,oss oa:unenoe. (a) l..csloe fails to ootify lcs!cr. (b) Lessee and Lesaor fail to....,.. an am:illlma,t to the applicable Equipment SclmJle to ddele tho Damagod Equipment and add tho "'Plaa:menl "lWPffl'lll or (c) 1.-has lllilal to pay the applical,le Prepl)'ment Price. then Lessor mav, at its solediscftlion. da:lan: tho applialble Prq,ayn,,nt Price of the Damagal E'quipincm. 111 be immediMdy ck>: and ~ The Net Prncmls of inllnnce ..;th n:spa:t to tho Damaged Equipmom shall be made a,a:Jable by Lesaor ID be "IJPlial to disdmgie i..am:' obligllion under Ibis Sa:tion. AI\TIO J:vm OTHER OBUG>l'VJl'!S or LESSEE Sodiaa I. I. Mal--. o( Eqai,,_.,, u:ssoe shall no1 1y t...... in writing prior to moving the Equipment to another address and shall othernuc lca:p tho Equipment at tho addn:ss spa:ifial ~: !ho ,.Jm( Equipment Schalulc. l..csloe shall. 31 its 0\\'11 """"'5C, maiDlain the Equipment in proper wodting order and shall IDIWO all J100C1111Y rq,ai11 111d rq,laccmcnts to k,cp tho Equipmmt in such condition inclwing compliance with Stale and faleral laws. Ally and all rq,1acemcnt ports must be Im: of cncwnbran0:s and liens. All su:b ~ pans and aa:cssorics shall be deaned to be inallporatal immalialdy into 1111d to Cllll5litulc an int<gral portion of tu: Equipnan and DI such. sltdl be u,jea '.O the terms of this A8J'l'ffl'III. All obligation, of the 1.-under this Secti,,n shall be subject to Sca.oo 3.2 and 4.2. A Seclioa 1.2. !IB!.J,.<aee shall l"iY all '""" and 1.1.ber chargos which 3l'O -i or lcviod apinst 1he Equipmelll. tho Rcnral ....,,,_ or any pon thcroo( or which ba:x1IDc due during thc lAlo Term. whethor ........i apinll 1-or Lamr. e.-u,q,t IS e,q....ty limital by this Sa:tion. I.J:s.<cc shall pay all uti!.tics and other chatp incumxl in tho operation. maintenance. use. occuponcy and upkeep of tho Equi~ and all special 3SS5IIIOmS and chargos lawfilUy made by any govmunenlll) body 1h11 may be !CCW'ld bv ; lien 00 tho IQ,UC.DOC.lcm..ut ntt 7 Ol-7')20.01 (b) Lcaoc shall pn,vidc 1-IIIXIIIIIM all ,-Jlable lilllOI ID ...... llld UIIPl'tlbeBqu.-11..t...,.. 1-wilb u::11 -ID thc Equipmall • 1111)' be rcmoml,ly noocssuy ID pcrbm IDli-.:e <II thc l!quipnal. in !be .,_ ti lilin by l.alll: ID pabm ill ablipliam bommdor. (c) Lcaoc sb,111101, dirllClly or indiRaly, a-, inm:, _or..,IDeullll)' 1111111111', pledp, lien, clllrF, ~ or Gdlcr claim wilh rapoct 10 Ibo ~ otbor than thc lo,p,,:IM ripes m Lc■or and i.-• bmein pnwidod. i.-..n ~. M '!I OMI c,cpcmo, 1111c such acliom ■ 1111,Y be IIOlzal)' mliy 10 dilolllrF or -Ill)' u:h daim iftbc -all llrile a _, ....._ Lcaoc shall remon: Lmor ror aaye,q,aa illc:unedby 1-iaonlor 10~«"""""' IIIIY mdailD. (d) The ponoo or Clllily in chlrF mplqllliag Lcaoc'• budpt will iacludc ia Ibo budpt ,.,._ ilr m:11 Fa Y• • Rallal PlylllallS ID bocome due cbiring such ris:al Year, ... will ... all .......... and lawful ...... 3Yllilablc ID -lbe ............ IIIIIIO)' Cor such Fiscal Year SJfficient to pay all Rallal l'aymeols IXlllling due tboran. Lmor adcnowlcdga that ll'l'IIJPrillio h Rallal ~ is a pa1Ul1CIIIII ftmclioo whicb l..moe C1111101 00lllraclullJy canmit illdf in IIMIICO 10 podbrm. 1-~ that diis ~ does DOI CXJllllilllle such a axnmitmmL ilowMr, 1-IIOllllllllbly bdieYos 1h11 IDDIIO)I in..,..,... ....,.10 mau Ill Rallal Pa)1ocms can and will lawfilUy be approprillod and made awilablc to penni1 l..cRe's <Xllllinuod iaili2alioo mthe ~ in i.pcm,maco m its ""8:lllial limaions cuing the .....,:.1..-T..,... (c) 1-shall ...,, that ill obliplioo 10 pay Rcnlal ~ is not dw.lJy or indira:lly seand by 1111' ~ in p,q,cny, Gdlcr dian !be Equipmcnl, and lha1 lhc Rcllal ~ will DOI be din:ctly or indiftlC1Jy !IOCURd by or dcm-ed from any ~ many lypC or Ill)' ftmd other than Leslle's y,cncral PIIJDII' fund. (I) Upon 1-'s n:qucs1, Lcaoc shall pn,vidc Lasor wilh Qllfflll financial -budFts, 111111 pm,( m lllllftllllilam for die mming rlSCII Year illld such other fimncial inbmaioo rdaing ID the abilily ti Lcaoc 10 aJlllinue lhis ~ 11111 eocb Lasc • mybe .-..ably rcquesud byLc■or . • (&) Lcaoc shall pn,mp:Jy and~ ClllllllO and dclMr 10 1-u:b funhcr documcllls, imllumam DI -al lllao mcll funhcr lldicn a l..csoor may from lime 10 lime .....,.t,ly rec,al in oo.'cr ID cany oot lhc ~-purpo10 Cl -: ':is Agimma al 10 CllliJlilb 11111 promct the rights .....s remodic6 aealal or mlClldod ID be ci-i in liM>r ml..eslor bcmmdor. SedlaaU Tu ..... ,.,.,,. .. '¥lawlP M!1 Cm11m (a) lnt;o,porationo/TarAsr-,,t-'Arl>iltctlrCmijioa. AlmeocblascDatcandwith.....,.:,.cac:bLasc.Lcaoc...,. acb mlbe...........,.,. Mlladil:I ml <XJYC1111D Ollllllinod in thc Tax~ ml AdJit,age C.,,ifica ddM:nd wilh lapocl ID mcll Lase. By this iaerence each such Tax Ajp'OOIDClll and AJbitnF Ccr1ificMe is incorpc,:IIOd in ml mado • p111 mtbis ~ (b) s .... 111 of Tazahility. IC LCSlor either (i) lll0CMI DOlioc. ia any form, liom lhc 1-Dll ~ SaWlO or (ii) l10llllllllbly cklermiDr:s. 1-=1 OIi an opinion IX iadq,endml lax CXllllll:l &locbl by l..caor, that l..caor 1111)' DOI .....:ludo Ill)' llllaest poil ,Dier 1111)' Lase ma ils Fcdclal grog income (each an "Evenc m Taxabili!y"), the Lcaoc shall pay 10 Lcsoor upon dommd (x) "" -wllich. wilb lapocl ID R:nla1 P:lynlCDIS previously paid and la1'illg inlo -all pllllllies. fine&. illlaal m:l lddibom ID laX (indudiag all iodoaL -and local wees impoood oa the lnlfflsl "'"' through lbe dlle m such event~ will """"" to Lesa its after-tax yield (asuning ... a lbe highest marginalia., rau: and llking into -the lime mm,eipt aCRemal Payments and roinYeslmcul at the.,....,, yield -) <II the tnnsattion C\iclcnc:<d by sucll Lmso lhrougb tbe dlle m such .-1 and (y) as additioml Rmlal Paymcds ID 1-oo eaci, -=>dillg Payment Date such IIIIIOUlll as will maiatlia u:b after_ yield ID Lcs,or. AR'llCLIVIJ INSURANCE AND RISK OP LOSS Sediaa 7.L YabWtJ pd ,,_ff JaBrw,t l..csa,c sboll, a ils OM1 cxpcmc. procw,, ml mailain ~ in di<! doriag Ibo milial Term and each Renewal Term : (a) public liability......,. lilr dcllh or injuries ID per.om. or dlmqc 10 pn,pcrty ~ .. m or in aJJ)" -.ay CXJIUIOClal t lhc Equipr.,cnt sufflamt ID prolCCI !.mor and/or assigns liom liabilii;· in all events, with a CIMIIF m • les tban $1.000.000 per oa:um,noc unless sp,afild dilfamly in Ille rclal<d ~ Scha!ulc. am! (b) insoJranoc apiml !IICb lmadl a Lalor may require, includiog. but not limilOd ID, all-ri!lt caally and pn,pcrty insmmJce. in an amount equal 10 tllo .,...., • die .. ~ aJll <Xtbo ~ ortheapplicalllc PlqJaymcnl Prioc mcach Equipmc-}n,up. s.c.. s.J D I ., ._. ...... Upon ..... of !he l'lepoyma1t Price ID good fimdl with nopecl ID_,~ Gnlop. tbc Leise with lapocl ID u:h ~ Group shall lel1Dinarc and Lc:sa shall -cmi1led 10 u:h ~ Group AS IS, WHERE IS, WTl1!0UT WARRAN'llES, EXPRESS OR IMPUED, INCLUDING WARRANTIES OF MEROIANl'ABllJJ'Y OR RTNESS FOR ANY PARTICULAR PIF.lPOSE OR FITNESS FOR TilE USE CO!ffl!MPLA'lcD BY l.ESSEE. ......-that such Equipment Grnup shall not be subj<ct 10 any lien or cncumlxlnoe ..-by or arising wou,b Lmor. AR'llCUVI REPRESINTATIONS,WAIIRANTIISANDCOVJ:NANTS Sectioa 6.L Ilg.....,_ pl Wll'l'al1ig al' Lap Lc:sa rcpre,ems and wamuus • of tbc Agimne,a Dare and as of each Leise D.m: as follows : (a) Lcs&oc is a Sllll< or polilical !UbdMsioa of tbc SralC within tbc IIIICllling of Sa:lioa IOJ(c) of tbc Code, duly argani2al and aisling lllllier tbc Cons1i1utian and laws of tbc S-. 811d is II00riud UDd,r tbc Comlitntion and laws a{ Ille S... 10 c:mr inlo tlis Agn,e,nmt, oach uao and tbc tnmB:barlS amtm¢,lcd bmby 111111 tbcrd,y, ml ID pediJnn all af i1s obliplions Jlldcr this ~ 11111 each I.case. (b) Tho e.=ution and dclMry of this Agreement and each Lease have been duly auahorizal by all necessary action ofLcs&oc's ~ body ml u:h action is in complilnce lrilh all ..-bidding and -SWe and federal laws apptialblc 1') this Agrmnont. each Lea, and tbc acquisi1ion and fimncing of tbc Equipmml by 1 ....... (c) Tbi.s Agn:emeiu and each l..<a5e ""'" been duly em:utlld and deln...-.cl by and a,IISlitulCS tbc wlid and binding obligation of i-. Cllfara:able apinst Lcsliee in ICIXldaocc with their r,spa:ti,,o lamS. • (d) Tho em:ution, dclMry and por1ixmanoc of this Agrcancnt and each 1..ta!1e by Lcs!ee shall not (i) violalc any Stale or liodml 11w a local law or ordinance, or any order, m, iDjuDclion, doaeo, or n,galaion of any IXJUII or Olhor ~ ._ or body appliclble ID L,a,o, or (ill GOOflid 'lrith or result in tbc bftacll or violation aC any 11:rm or pnwisioo al. or 1XJ11S1itw, a ddiult UDdcr, any DIiie, boad, IIIJl1pge. indcnrun:.agn,cmcut, docdoflIUSl. lea!e or Olhcrobligation to whlch Lcs!ee is bound. (c) i llcrc is no action. sui~ prooooding, claim, inquiry or UMSligation. at law or in equity. before or by any IXJUII. ~•I · lplley, pomlic board or body pending or, ID tbc best aC Lcs&oc's lmowlqc. threalcnod Qaim1 or alll!:dng IA:ssec, c:hallcnp ' s ~ 10 CIIIOr illlo this AgrOCIIIClll or any Lease or any odlor lClion wheroin an untiMnblc ruling or 1lnding ..,.,Jd adYCnlct .a .... die ClalltlOlbility aithis Agn,,ment or any Lmsc. (f) No lease, rcmal agn,cmm. lcasc-p,J,thasc agrccmo111. jllYlr,Clll agn,cnat or IXJllllaCI for purthaa, 10 which Lcs&oc has been a piny• any time during the past ten (10) )'<811 has bcco l<lminatcd by lAloc as a ,-It aC iDsufficicnl funds being appn,prilllal in any F"""1 Year. No ..... has occunod which ,wwd IXJIISlilUl!e an C\'CDI oC -lllllier any debt, -bond or obligation which Lcs&oc bas issued during I.be pas1 ten ( I 0) years. (g) L,,.... or Lcs&oc 's governing body has~ andlor tlta! Olher lawful actions oca:ssary 10 provide IIV'""YS sullicicnt ID pay all Rental P:1)1ncnts during the cumnt Fiscal Y car, and such -~ will be applied in pa)1IIOl1I of all Rental Payments due and payable during such amcnt Fi.,cti Year. (h) l..csa has an immodialc need for, and e."<pcctS 10 make immediate use o( the Equipmcm. which need is not tcmpor.uy or cxpocltd to diminish during the applicable Leas,, Term. Lcsscc p,csently -10 IXJll!inuc each Lem, bcrcunder for i1s cntin, Lea Tenn and 10 pay all Rental Payments relating tbcrcto. Scdion 6.2. Covenanu al' Lam Lessee agrees that so long as any R,ruaI Payments or other amounts due under this A8l"fflCDI n:main unpaid : (a) Lcssoe sball not in<tall, use. 0pClalt or maintain the Equi~ improperly, c:ardcssly, in ,iolalion of any applicable law or ~ o: in a manner cxmtr.n"J 10 that IXJOtcnJplatal by this Agrcemcni. l"5SCC slalJ -. and llllinain all permits and U.:.... ~ for the installation aul opCl3lion of tbc Equipmmt. Lcsscc shaD not. without the prior writtm IXJIISODI of Leso, affix or instill any aa:esay equipment or devia: on any aC the Equipment if such additior 'Mlllld change or impair tbc originally intended ftmaioos. ..iue or""' o{ such Equipment. 1Q,PC.DOC:1w.-n1. Q2.7'Sl2D.OI • 1-liill ID a,mply will,.__ .• iDllnlClionl and lilr Ill)' atber loa ll6n,d by l.-. I lemll oC1-'s lilun: ID .. mcb actions ......... SeElm u Tg I 1 !I Lew IPW Tllo 1.a1o Tenn wi1b lapa:I IO my r.-Mil laminlle upoa thc occurrm:e ae an EWIII oCDefault by Lessee and l.-'s dodian ID iermilmo IIICII i.-sa-10 Aniclo xn. All11CL&IV 111.NTAL PAYMINTS S«lka -1.l. Bsllll ,..,,,,... Tho Lessee agr,,<s IO pl)' ID the 1-the Rmra1 ~ due a ll)OCiliod iD thc l'a)ment Sc:lmiJc in E.'<hibit A. Such Furm shall be 1-1 by the J...mcr solely for the pwpooe of paying the principal and ~ duo pursuant 10 this Agrocmml. A ponion d '8Ch Rallal Payment is paid as interest as sp,cilled in the Paymom Schodulc d <a:b La& and the 11m RCIIIII Payme,t will iacludo 1-aa:ruiag llom the FUDding lllll:. I.-is lllharizal III iDsen thedue dlle dthe 8nl Rallal l'a)111m1 ill the Pay..-Sdmlll, in E:dlibil A. All 11...i PlymmlS shall be plOIDl'lly ianiaed by the Lrac 10 the 1-, or ID sadl lllignoo(s) 1-Im aaigml as llipai.t iD Anicle XI. • u:h places• I.-or a:b lllliglloe(s) may fiam time IO lia ~ by l>riam ll0licc IO Lessee. Lcsscc shall pay the Renlal Payments l>ith lawfil1 money d the Uni lid Slales of America from -i<plly a,'lilable lhaea{ Secllaa u ClllPI ,_ The ablipliam a( Leae. iDduding ils abliplioD ID poy the Raal Paymaa cu: in any Fi9CII Year d a Lease Tam shall ...-.0 a amm e,q,emo oC Lc:ssce for a:b Fial Yt:111 and shall 11111 be aJllblOd or~ (a) IO dinicdy or indiroaly obligale thc Lessee IO make any paymenl iD my FIDI Yrar in cca:ss ri: 3D1W111S ,1'1J1'0111iala1 for ,uch Fll<:al Year. (b) • Cl'Clling a -or multiple lilcal ,ar dira:I or iDduect -or atber 8na:ial obliplion wbaao<\u oC the 1-willlin the mo:ming d /u1iclc XI. Scaion 6 or Article X. Scaion 20 oC the Colorado Conslitution or any atber ainsaibllicaal or -..a,y limilltion or pru,isiaa.: (c) as a dclcgalion ri: g<MOllllllOllla po,,as by the L<ssoe: (d) as a loon or pledge of thc aodit or fili1h ri: the Lcsscc or as a.aling any .......-,iiity by the ........ ilr any -or liability ri: any ponon. aJ11111111Y or axponlian 1'ilhiD the 1110111W111 rs Anic1e XL Soclion I ri: the Colarado C~ or (e) • a daaalion or grant by the 1-ID. or in aid ri:. any ponon. ~ or a,,pondocl within i;e llllllliDg ri: Anicle XI. Sa::tion 2 ri: the Colorado Canstitulion. Notbin, henin shall CXIIISlittle a pledge hy Lc:ssce ri: Ill)' IDS ct atber IIIDl10)' (other than moneys lawfully ~ from lime ID time by or lbr the bcndit of 1-for this "8ffml<lll and the Net Pnxmls of the Equipmcnl) IO thc payment oC any Rallal Payment or other llffl0Wll coming due hereunder. Smiall .U. 11r:r:Wlmf ..... P ..... E.-u:qJI II proridod in. the Lasce's obliplian ID makc Rallal Payma1ls shall be ..... and ~ Also. any other ~ lllpRd baamder all be ....... and -1-all .. thee pl)'IIIOIC when due and shall 11111 withhold any ri: tbca: ~-Jl°"'liog liDal raolution ri: any dispula. Tllo t.... shall 1101 -any rigbl of set-<llf or aJWlla'Claim against its obligalion IO makc these l'l)'llmS. i.-·s ob~gatioo IO make Renlal Pa)ments or other pl)'IIIOIIIS shall not be abded tbrou8h aa:ident. U11D11100D ciraJmslancm, 1ii1u1c d the Equipmm to perfurm a desuod. damage or dalruaian IO the Equipaaa. km ri: p0BSD011 ri: the Equipment ct abmieoca,ce ri: the Equipment Th: Lc:ssce sball be oblip!Cd IO <Xllbllle lO "* poymeaa rapnlll mil by Ibis Agroement ifliUe 1o. or """"""'1' ... ri:. the Eqaipnd or any pan tbcnd shall be 1alieo under e.,en:ise ri:the ix-,-ri: eminent domain. ARTICUV OPTION TO PRIPAY Soclioe 5.1. Opdoa tu l'm,ay Lcsscc shall hl\-e the option 10 p,q,oy its obligalions Wider any Lease in whole bit not in part oo any l'lymem Date ilr the Ihm ai,plicable ~ Pria: (which lhall in:lude a plqll)'IIIOIII fee) as 9'I fonh in the rc1at<d Payment Schodule. proridod tha-e has been .., Noo-Appmprialion or Evtlll d Default Su1ioa 5.2. Egrtjg d Oplioa u:ssec shall gi>-e notice IO Lessor of its inlention lo c.wtise its option not less than thirty (30) days pior IO the l'lymenl 0.. on which the option will be =tiled and shall pay to Lessor not lattr than such Payment Date an aroount ...,.i u, all Railal l'a)ments and any otbcr amounts then due or past due under the rclattd L<ase (including the Rontal P:lymcnt due on the l'a)1IIOIII Date on which the option shall be dli:dn~) and the :,pplicoble Piq,ayment Price set forth in the rtlaled P:lyment Schcdule. In the ....,. tbal all such llll1DlaG an: 11111 ra:eiYal by Lessor on such Ply..-I>& u:h notice by !.esm, oC exerdse d !Mil \-: ,1lid and the l.-.llmlesbalJCIJlllinueinlillllilnzanddfa:t. • ~ 1om•ni.: AR'llCUD LEASE OJ IQIJIPMINT Sdoll 11. + • • • ., r : • ,,..,, ID 111e lddltlon of 1111)' Ecppmmt 0n,up, i-sl'"1I plU>iile 1..-. with • dlllcriplion of the equiim-pn,poocd ID be u,jott to a Lase hlftundcr, including die -and ...,. of m........., die ec.-i Mwry dale and the desirod lease 1amS &,r such equipment. and such 0lbcr infonnolion as the Lcair may ""'"'"" If Lcair. in ils sole dia:nm,, clmmines die pn,poocd eq,ip,m may be u,jott to a 1-haemder, 1..-. shatJ lllral ID 1-a.,....... Equipmenl Sdmilc ldlling to the i:qw..,,... Group for e,ccaJb0ll by l..cssoc and !hen Lasor. By .,.,.,.._ bcleo( Loa,r bas oalc 110 cammitmml ID lease any ~ ID I-. Smllll 11 P• t..-or DD baYO 110 obligalion ID nm any clullanemenl 10 a Veodor or nimllmle 1-for any plYIDCIII made ID a Vendor for an Equipment Group until five (5) businm <la)• after Lasor has r=ivcd all of the filUowing in form and __,. ~ to Lear: (a) a a,mplc1Dd &juipmml Sc:hcdulc """'1llid by Leaoo; (b) an Aa:epcance CertillClle in the form ildldod with E.'Chlbit A ~ (C) I resolali<xl or evideace of othrr olllcial don takat by or Oil behalf of the l.moe ID lllhort,,e the qlisitioo of the Equipment Group on lhc 1amS provided in such Equipment Scbo<mlc; (cl) a Tax Agr<aDOIII and AlbialF"Certilicale in die ixm of E.'Clli>it 8-1 (as applicablo) machal ~ (c) Mlmce of imuralloc with respocl to the Equipmcnt Group in coq,lianoc with "8cle VII of dis Agrfflnenl: (I) Vendor inwico(s) ml/or bill(s) u sale l<laling ID the F.quip,ma On,up, and ;f mch DMJioes baYO been plid by lesoeo, evidence of payment thend and evidence of affiaa( -ID rambune such (ll)'IIIOl1I as n:,quiml by die Code; (g) limncing SlllanmS c.=ll<d by IA!oc as ddllor and/or lhc original a:niflcalc oflitle or manufaaun:r's ceniflcalc of origin and litle ......,..,._ if any, for any Equipment which is pan u such ~ Group and is u,jott to a:nillc;ie of tide tows; (h) a a,mplc1Dd and .......i Form 80311-G or 80311-0C. as applialJlc. or CYidcnl:e of filing tbcn,o( with die Secrctuy of Tn:aswy; (i) an opni, a of a.msd to die l.moe ~ in the fi:Jnn of Exhibit E bcmo, 111111 (J) any 0lbcr documcnls or iloms rcmonably n:qulral by Loa>r. S<dioa 2.J. ..... ....,.,..., ""' u .. Lessor bcrd,y teases the F,quipmcnl to Lcsscc, and IA!oc bcrd,y leases the Equipment ~ l.<Ssor. ~ lhc terms and condi1ions SCI forth herein. Lessa, shall Im" quiet uoc and enjo)'nmtt of and pcaa,ably baYO and hold mch Equipmcnl Group during lhc rdartd Lca,e Term. c:<a:pl as c,qnessly SCI forth in this Agra:mcr: ARTICUm TERM s«llon 3.1. Im!!.. This Agree."°"' shall be in dfcct for the Lca,e Tenn which shall be compris,d of an Initial Temt with """""5ive one-)"" Renewal Terms. Each Lca,e with respocl to an Equipment Groupshall cxpirc~ thecarlicstoflhefollowingew:IIIS: (a)dle final day of my F'l!CII Year in which Noo-Appoprialion oc.:urs; (b) the payment of the Prepayment Price by Lcslct !JWSIIIIII to Al1icle V; or (c) the payment by l..cssoc of all Rallal Pay,-11111 all Giber -adboriml or n:,quiml 10 be paid by 1-pm,uall 10 such i.e.; 'll!!rid!:!!1, il!1!!m!, 110 Equipment Schocmla shall be elCOCIIICd after any Non-Appropriation or EventofDdiwlt S<dioa ll [ya,t g( Noa-Appn,prj>,"°" Ao E\-cnt of Non-Appropriation shall be deaned 10 baYe oa:umd with respocl 10 an Ecppmmt Group oo the last day or any F'l!CII fou if the Lessct has. oo or before such dale. failal 10 appropriale sufflcicnt amounts adhorii.al and dim:lal to be usod 10 pay all RcDlal i'aymcnls and all additional 1111111DS -ID be poyablc with respocl ID such E"qaipment Group in the oc,a emuing F'l!CI( Year. In the sole event or Non-Approprialion. this Agraomcnt sbaU ICl'lllullMe and each Lease hlftundcr shall c,q,m. in whole. bul noc in part..-10 all F,quipmonl dl'cicffi" ~ lhc last day of the F'ISCII Year for 1mich llmds"""' "l)lllllpliaud in lhc manner and u,jott 10 the tams spccifial in this Article. l..cssoc shall endcn-or 10 give notice of its in1mt 10 permit a 1-ID expire noc less than ninay (90) di), prior 10 the end of the Fa Year for which approprialions """' made. and shall notify l..alllr and the a1l"cctal mignc,. if any. of any anticipllal oon-roncwal : pr01idcd fuiture to give such nocicc shall noc CXJl!ltitutc an EYCIII of Ddimb. In the e1-cnt this Agn,oment expiros as provided in this Sectiort Lcs,ec shall annply with the inmuctiom n,cejycd from Lessor in acconlaDoe with Section 12.J . S<dioa 1-.J·. Effect g( Emjnliop or Tm,lp-Upon c.'q)iralion or termination of this Agreernonl as provided in this Anidc. ........ shall nJt be ,-espons1ble for the payment of any additional Rental Payments coming due in succeeding F'ISCII Yem. bu1 ifl..cssoc has ... CXllllplied,.;.;, the ins1ruaions n,cejycd from Lcssor in aa:ordancc with Seaion 12.J. the c.,q,iralioo or~ shall DMrtbotess be dloctM, bul Lcs,ec shall be '"'l'(ll1Slblc for the payment or damages in an amount equal 10 the amount of the ROlllll Paymens.. that would dlaa6:r have axno due if this ~ bad noc o,cpind or been taminml and which are attribulablc 10 the llUIDbe:r of di), after which 10-D:ooc.1ommrnc 3 O:Z,.7DJO.OI i i -I I I J '! ii I I! i ! I I!~ I~ I I I ii 1il I JI iii Ii i ! i if I If ii! I ! I !I 'i. i I Iii jl I~ i I I~,~~ 1 1 ti l~ ~'I' I, I, t Ii, l~1 - I • . t I ·, 11 1! i! i 11 '1f • ; if f [ f J f; i l J ifs f{ f i ! ff•j tJ f ii = 'i ! 'r ,~ i l i I' t i It l I ! l JI I ii it, I· I I If J r t ! i I J i 1! Ii 1 ii 1t I l !i 1 s 1 i I r s ~1 .. : f. } l11 l I . J l i iii . ,fl I. ti l I ii i i J fj jf i I J l· ' f ! i I I ! I" i1 ~ f 11 f ; f l f . 111 1 JI I I ~ R' i i .J I J -~ f. ,. rt 8 f . ~g; •• IJol , .... -Pllcl --,.,_ 01.-Tolal -• ~ • llomal 1700000 -4-1200.00 4-1200.00 37»'' l> 111MIO -35'11 3000.00 35'11 7 I00.00 7100.00 37335-IN 1115'00 -35'11 35'11 3000.00 35'11 7100.00 -«I0.00 35'11 1 040.00 --17Sln 1200-110000 35'11 4 SI0.00 -3100.00 35'11 91110.00 --R-U. 11000.00 35'11 21 450 .00 ----1000.00 35'11 5200.00 -790.00 35'11 417 .50 -Ul ·CGnlSh ,ecm.oo 35'11 234'00.00 -4 35'11 4 100.00 35'11 280.00 --&1 Nlllllol I 308500 35'11 1eoa◄.oo -I 35'11 I 1900.00 35'11 91110.00 -I 70000 75r 31140.00 -I 8 I 100. a --400 -1 -Uiioo ----I 3112. 1 15000.00 O'II 71100.00 TOTAi. 1500.00 15 41701 .25 41701.25 37335-IN 111MIO -7 13127.25 13 827.25 37335-IN 11115'00 -I 9730.50 S,730 .S> 37335-lN 1111500 -2 1493.50 1,483.50 37335-lN 11/15()0 -141111.79 8,41111.75 37335-IN 1115«10 -25118 .75 2,5118.75 37335-IN 1115()0 -2 5118.75 2,598.75 _17335-IN 11/15«10 - 11115()0 -11/15«10 -11/15«10 ---11/15«10 -11/15«10 -11/15«10 -11/15/00 ----11115()0 -11/15()0 -11/15«10 -3000.00 --------t----:--:--,---.. .... ffiiu 3,180.00 K 70.00 K 11 12IOO.OO 420.00 • 92£~ • q Payment Schedule i.-No.: 01 """ Equtpment sclleelula:11 I l'aylllent Prtnclpal Prepayment ~&ie Olla lalanca ...,.._ Prlnclpal lnlafffl Prtca' 1£liiioo 378,781 .00 1 1/ll/01 373 ,321.12 7,308 .◄3 5,4311.88 1,11118.55 $381 ,584.10 2 21Ml1 3117,854.41 7,308.43 s .~.11 1,841.72 $375,ae!l.80 3 3/ll/01 382,380.73 7,308.43 5,493.88 1,814.75 $370,123.28 4 416101 358 ,839 .95 7,308.43 5,520 .78 1,787.65 $364,357.03 5 !1111/r.1 351 ,291 .93 7,308.43 5,548 .02 1,790.41 $358,588.75 8 e/G/01 345,716.54 7,308.43 5,575 .39 1,733 .04 $352,752.35 7 7/ll/01 340,113.84 7,308.43 5,802.90 1,705.53 $348,913.72 a 8/ll/01 334,483.11 7,308.43 5,830.54 1,877.89 $341 ,050.77 ' Ml/01 328,824.79 7,308.43 5,85a.31 1,850.12 $335,183.38 10 10/8/01 323,138.56 7,308.43 5,888 .23 1,822.20 $329,251.47 11 11111/01 317,424.29 7,308 .43 5,714 .28 1,594 .15 $323,314.92 12 121Ml1 311,881 .82 7,308.43 5,742.47 1,585.911 $317,353.83 13 11M12 305,911.02 7,308.43 5,770.80 1,537.63 $311 ,367.51 14 2/SI02 300,111 .75 7,308.43 5,799.27 1,509.16 $305,358.45 15 318102 294 ,283 .87 7,308.43 5,827 .88 1,480.55 $299,320.33 18 4/ll/02 288,427 .24 7,308.43 5,856 .83 1,451 .80 $293,259.07 17 518/02 282,541 .72 7,308.43 5,885.52 1,422.91 $287, 172.55 • 18 8/ll/02 278,827 .18 7,308.43 5,914 .56 1,393 .87 $281 ,080 .88 18 7/ll/02 270,883.42 7,308 .43 5,943 .74 1,364 .69 $274,923.33 20 11/B/O:i: 264,710.36 7,308.43 5,973.06 1,335.37 S288 ,780 .42 21 9111/02 258,707.84 7,308.43 6,002.53 1,305.90 $262,571.82 22 1018/02 252,675 .70 7,308.43 6 ,032.14 1,276.29 $256,357.44 23 1118/02 246,813.80 7,:.08 .43 8 ,061 .90 1,246.53 $250,117.17 24 1218/02 240,522 .00 7,308 .43 6 ,091 .80 1,216.63 $243,850 .89 25 1/Ml3 234,400.15 7,308.43 8,121.85 1,188.58 $237,558.51 28 218/03 228,248.09 7,308.43 8 ,152.06 1,156.37 $231,239.90 27 318103 222,085 .89 7,308.43 8,182.41 1,126.02 $224,894.97 28 4111/03 215 ,852.78 7,308 .43 8,212.91 1,(195 .52 $218,523.81 29 518/03 209,609 .22 7,308 .43 8,243.56 1,054.87 S212, 125.69 30 11/B/03 203,334 .88 7,308.43 8,274 .36 1,034.07 $205 ,701 .12 31 7/8/03 197,029.55 7,308.43 11,305.31 1,003.12 $199,249.78 32 8/8/03 190,693 .14 7,308.43 8,336.42 972.01 $192,771.55 33 918/03 184,325 .46 7,308 .43 8 ,367.68 940.75 $188 ,268.34 34 1018/03 177,926 .37 7,308 .43 6 ,399 .09 909.34 $179,734.02 35 11111/03 171,495 .71 7,308.43 6 ,430.66 877.77 $173 ,174.48 36 1218/03 165,033 .32 7,308.43 6 ,462.38 848.05 $166,587.61 37 1/8/04 158,539 .08 7,308.43 6,494 .27 814 .18 $159,973.30 38 2111/04 152,012.75 7,308.43 8 ,526 .30 782.13 $153 ,331 .42 39 3/8/04 145,454 .25 7,308.43 6 ,558 .50 749.93 $146,661 .87 40 418/04 138,863.40 7,308.43 6 ,590 .86 717 .57 $139 ,984.53 41 5/8/04 132,240.03 7 ,308.43 6 ,623 .37 885 .06 $133 ,239.29 • 42 618/04 125,583.98 7,308.43 8,656.05 652.38 $126 ,486.02 43 7/6/04 118,895.10 7,308 .43 8,888 .86 619.55 $119,704.82 44 8/ll/04 112,173.22 7,308 .43 6 ,721.88 588.55 $112 ,694.911 PaYl!1'ffl J Pnnclpal ! 1 '7-" 0.-i llllaMe ~ Pttnclpal l/8/04 105,41818 7,308 .43 8,755 .04 48 10/8/04 98,829.P 1 7,308 .43 .,711.17 47 11N04 111 ,IIOHj 7,308.43 8,821.111 48 1218104 84,952.44 7,308 .43 8,155.51 49 1/ll/05 7~,083 .11 7,308.43 8,818.33 50 2111/05 71,139.79 7,308 .43 8,923.32 51 3111/05 84,1C2.32 7,308.43 8,957 .47 52 411111)5 57,190.~2 7,308 .43 8,991.80 53 5111/05 80,184.23 7,308 .43 7,028.29 54 8111105 43 ,103.28 7,308.43 7,080.95 55 7/9/05 38,007.49 7,308.43 7,095 .79 5e 8/e/05 28,878.70 7,308.43 7,130.79 57 lllll/05 21,710.73 7,308.43 7,115.97 5e 1QIB/05 14,509.40 7,308 .43 7,201 .~ 5tl 11111105 7,272.55 7,308 .43 7,238.85 !l!l ~ 000 ~ --1..mJl 431 ,505 .80 Interest Rate 5.920% "Purchue Price after the cunent leaSe payment has been made . i..u.: City of Englewood .,Sy: ________ _ Trtle :MD!l[ wDate : ________ _ 378,781 .00 Purcllue • ...... ..... ssi.38 $108,&ii.92 II 1211• ... ,190.40 , •. 57 ffl,fl5.a& 482.92 '91;371~, 419 .10 $78 ,418 .88 315 .11 $71 ,438 .99 JS0.98 184,428 .22 318.83 '57,3811.23 212.14 sso,31e.i1 247.48 $43,218.13 212 .84 $311 ,089 .78 1TT.84 $28 ,931 .72 142.48 $21 ,743 .14 107.11 $14 ,528 .01 71.58 $7 ,278 .10 ~ l!l.a2 59 ,744 .80 COUNCIL COMMUNICATIO f' Date Agenda Item Subject BIii for an ordinance approving a October 16 , 2000 11 a iv lease-purchase of Cisco networking equipment for the Citv of Enalewood lnltllled By I Staff Source Department Of Finance and Administrative Frank Gryglewicz, Director Services COUNCIL GOAL AND PREVIOUS COUNCIL ACTION City Council approved the purchase of Cisco networking equipment from NEC Business Network Solution, Inc . at the regular City Council meeting on May 1, 2000 . RECOMt.lENDED ACTION Staff recommends Council approve this bill for an ordinance ar,proving a lease-purchase of Cisco networking equipment with Sutro & Company. BACKGROUND, ANALYSIS, AND Al TERNATIVES IDENTIFIED The City's lnfonmation Technology Department purchased Cisco networking equipment from NEC Business Network Solution , Inc . to improve the City of Englewood' networking capabilities . The e,1uipment is on site, installed and operational . The City paid cash at the time of purchase, but after analysis of other technological needs, staff decided to lease-purchase this equipment to free up funds for other technology projects . The alternative to this lease-purchase is to pay cash, but this would not allow other projects to go forward. FINANCIAL IMPACT The City will make payments on this leasll•purchase agreement for five-years at 5.92 percent on a principal of $37e.761 .00. The City of Englewood will be reimbursed these funds after completion of this agreement. UST OF ATTACH'.1ENTS Prop, 3ed bill for an ordinance Sutro & Co. lncorpon r MASTER r ;ASE AGREEMiNT LEASE NmtfflER 01 •• This MASTER LEASE AGREEMENT (lhe "Agreement"), dated u of Ibo 6111 day of December, 2000 is made mid entmd in10 by and be!we<n SuD'O & Co. lncorponto<!, a Nevada corpon,tioo, as Lessor (die "Lessor") and die City of Englewood, a political subdivisioo of die Stite ofColondo, as lcssee("!.esseej. In consideration of die 1111IUII covenants herein confained, die parties bemo agree as follows : ARTICLE I DEFINlTIONS AND EXHIBITS Sttdon I.I . .!!sllall!iD!. The following tenns have die mcmings specified below . • Accep!Jn ce Cenifiea10" meons eacb AcceptlDce Certificate delivered by Lessee as port of m Equipment Schedule certifyin1 as IO lhe delivery, insmllation and accepllllCO ofEquipm,:nL • Agreement" moons dm Master Lease Agm,ment and all Equipment Scbcdules bereto. "Agreement Date " me:ms Ibo date fim written ahove. • Agr«meut Renewal Tenn" mnns a periud commmcing oo lhc Jamwy I immcdialcly following lhe lemlinatinn of die lnilial Agreement Term or preceding Apee<llelll Ren,waI Tom, and ending oo December 31 of sucb year. "Code " means die lntemal Revenue Code of 1986, as amended, togelhcr will> TIHSU!)' Regulalioos promulgal<d from lime IO limediereunder. • Group. "Equipment" means all items of property descnbed in Equipment Schedules and subject to diis Agreement "Equipm<nt Group " means eocb group of Equipment listed in a single Equipment Schedule. "Equipment Scbcdule" m...., eacb sequentially numbmd scbedule executed by Lessor .md Lessee will> r<Sp<CI 10 an Equipment "Events of Default" means those cvenlJ descnbed in Section 12.1. "Fiscal Year" means e,ch 12-mondi fiscal period of Lessee . "Funding Date" me:ms. will> respect 10 eacb Lease, die clan: Lessor makes payment IO Ibo Vcndot(s) named in die re lated Equipmem Schedule or reimburses Lessee for die purtbase price of die related Equipment Group or, if die procedure descnbed in Section 2.4 is utilized, die date Lessor deposits funds equal to sucb purchase prire into Ibo Escrow Account "Initial Agreement Tenm" means die period commencing on die Agreement Date and ending Decerr,o:r 31 oflhe Fiscal Year in whicb the Agreement Date occurs . "lnilial Le:isc Term " means. •lid> respect 10 any Equiproeot Group, die period connncncing on lhe Lease Date and ending on December 31 of die Fiscal Yw in whicb die Lease Date occurs . "laterest" means the ponion of a Renttl Pl >mcnt designated :is and comprising interest as provided in a Payment Schedule. "LelS<" meons. with . ,spec : IO e:,cb Equipment Group , diis Agreement and lhe Equipment s.:!>cdule relalin~ there10, "ilicb togcmer shall comti1111e , separate contract between Lessor and Lessee relating IO sucb Equipment Group. "Lease Date " mons. with respect to e>eh Lease , the date so designated in the related Equipment Schedule. "Le:,,e Renewal Term " me:w. with respect 10 any Equipment group, a period commencing on the January l immediately following the t1:nl1ination of Ibo Initial Le:,se Term or pm:cdins Je:,se Reoewal Term and ending on the December 3 l of such yw. '1.cueTcrm' m,om, widt n!lpect ID IICb ~llraup, die paiad dmiDa which lbelilad l:liilil. 1a•u ,pecilled in ,$:<1."'1 ),1. l ~ C • 'Net Proceeds' 111<1111 Ill)' insurance pn,ceedl or caadamldon aWll'lls pad wilh mpi,:t ID my Equipmln! l'lllllillins aft<r l'IY""11t lbetmom of illl apa,sa iDcumd in die collection tboreof. 'Non-. ..pproprialiotl' IIIIIIIIS dlc &ilun on:.-,~•• pemina body, or, !fappllcable, dlc ..,..._i em11y llum wblcb Lesaco obtains its opaalins IDdlor capital fimds ID tll>PIOP'illl n-,, fi,r aay F"IICal Y .. safflcieat far dlc contma<d perfbrmmcc by I.alee of ,JJ of Leuee 'a obliplims undor lhia Apemen~ as evidenced by Ille pasage of III onlimnce or resolution ,p,dfically pn,bibitinr t.casce ftomperfonniq in oolipiomunderthisA.....,.._wim respecttoa,y Equipmom. iixlllmn'using my moneys ID pay 1111)111,ntll Paymmts due under this Apem,ntroradesipated Fiictal Yeor and allsabaequa,rFiscal Yoars. 'Payment Dare' means each dare upon wilich a Rcntsl Payment is due and payable a provided in a Payment Schedule. 'Payment Sche<blle" means the ,cbedu]e ofll,ntal Payments attached to III Equipmml Scbedulc. "Princi pal " means the portion of any R,ntal Paymont designated as and comprising principal as provided in a Payment Schedule . "Prepayment Price" 111C111S the amount so designated and set fonh opposire a Paymeut Dare in a Payment Schedule indicating the amount fo r which Lessee may purchase the rei.r.d Equipment Group u of such Payment Dare after malcing the Rcntsl Payment due on such Payment DII<. "Rental Paym<nt' means each paymoDL due liom lessee to Lessor 0111 Payma,t DIIO. "Specifications" means the bid specifications and/or purchase order pursuant ID whicb Lessee has onlm<I my Equipment from a Vendor. "Stare• means the Slit< or commonwealth in which Leuee is situated. A "Venda<" me:ms each of the manufacturffl or vendon >.'om which lessee has onlorod °'' with which lessee hu conn,cted for the Wmnuracture, delivery 11111/or in1111lalion oftbe EqwpmeaL Section 1.2. Eshlblts Section Exhibit A: ~: Exlub it F-1 : Equipment Schedule including form of Accept211ce Ccnificat< and Conn of Payment Schedule. Form ofTax A8ffflll<llt and Aibit:oge Certificare. Form of Resolution of the Governing Body ofLesstt relating to each !..we. Form of Incumbency Certilicare u to each ol!iceT or t<pme111ative of lessee exe,uting this Agreement or any I.case. Form of Opinion of Independent Counsel ID Lessee. Form ofConfumalion ofOut1 ide Insurance. Form of Questiol1Il3ire for Self-Insurance and Addendum to Equipment Scheclule Relating to Self-Insurance. ARTICLEll LEASE OF EQUIPMENT Section 1.1. Acquisition of Equipment Prior to the addition of any Equipment Group, Lessee shall provide Lessor with • de!ICtiptioa of the equ;,ment propoS<d to be subject to a Leue hereunder, including the C<>St and vendor of such cquipmen~ the expecred delivecy dare and dJC desired lease tmns for such equipmen~ and such other inform:ition as the Lessor may requin,. If Lessor, in its ,ole ,-mcretion. determines the propoS<d equipment 11y i>e subject to I leue haolmder, Lessor 5hall furnish ID lessee I pmposed Equipment 9'cbedule relating ID the Equipment Group ror execution by Less<e md then Lessor. By execation h<m>f, Lessor bu made ao commitment to lease any ~t to l.es!ce. IO-UC.DOC.ott'UIOO r.x Stcdoa ll ~Lessor shall have no abliplian to make any disblnemcac to a Vendor or reimburse Lessee for 11r1y · payinenc l!lllde to a "✓endor for an Equipment Group until five (5) business day, after Lwor has received all of the following in limn al subsllllee satisfactory 10 Lessor. (a) • completed Equipmenc Scbcdule execuled by Lessee; (b) 10 Accepmr,ce Certificate in the form \IICluded wirh Exlu'bit A hereco; (c) • n:solution qr evidence of other ollicial IClioa IIUll by or 011 bdllif of lhe Leuce 10 aulhorize dA acquisition of the Equipment Group on the tenns provided in such Equiprnmt Schodule; (d) 1 Tox Agreanent 11111 Adringe CertiliclJ: ~8fW the fonn of Exluoic 8-1 (u applicable) altlcbed hereco; (e) evidmce of insurance with mpecc 10 the Equipment Group in compliance wilh Atticlc VII of this A8[Ull1CII~ (f) VC!ldor invoice(s) and/or bill(1) of sale relalins 10 the Equipmen1 Group. and if sud, in,'Dices have been paid by Leuee. evideoce of payment thereof md evidence of official inlenc 10 reimburse sw:h paymem " required by lhe Code; (g) fiaaDciDg slalanlllls e:xea11ed by Lessee as debtor and/a, the orijinal cenificllio of title or ltllllllDCIWU's certilicare of origin aad title applicltion, if any, for any Equipment which is pan of such Equipmcac Group ml is subject co certilicare of title laws; (h) a completed ,nd executed Fonn 8038-G or 8038-GC, as applicable, o, evidence of ffiin& thceofwith the Semwy u!Treuury; (i) an opinion of c:oumel IO the Lessee subst1ntially in the form of Eltluoil E here 10. and (J) any orher documents or items reasonably required by Lessor. Secdon 2J. lease: Pomsslon 2nd Use Lessor hereby leases the Equipment to Lessee. ,nd Lessee hereby tea,es lhe Equ ipment from Lesso,. upon lhe terms ll!ld cooditions sec forth herein. Lessee shall have quiet use and enjoyr-..cnl of and pe,M:e:ably have ll!ld bold e:icb Equipment Group during lhe related Lease Term. e."ept as e:q,ressly set fonh in this Agrmn~JL ARTICLEm TERM S«tlon 3.1. T,rm This Agreement shall be in effect for lhe Initial Agreement Term and shall be deemed renewed for each Agm:mcnt Renewal Term unless this Agm:ment expires or is terminated by the earliest of (a) tcnnir?ation undtr Section 3.2 or (b) tr.mtirulcion under Section 12 .2; ~~no Equipment Sc.hedu.les shall be executed after any Non •• o\ppropriarion or Event of Default Each L=e ,virh rupcct to an Equipment Group shall be in effect for an Initial lease Term and shall be d=ncd renewed for each Lc:ue R.ci,.-w.l Tenn unless terminated pursuant 10 Section 3.4. Sttdon 3.2. Expir:adon of Ltast In the sole event of Non-Appropriation. this Agreement shall tcnninate l!ld c:ich Lease hereunder shall expire, in whole. :iut not in pan, as 10 all Equipment effective upon the last day of tbe Fiscal Yeor for which funds were appropriated. in the manner :ind subject to the terms specified in this Article. Lessee may effect such C:(\'u.ltion by giving Lessor a written notice of non-renewal and by paying 10 !.=or any Rental Paymcrus and other amounts which an, due IID<l have not been paid at or befo. the end of its lheo current Fiscal Yw. Lessee shall endc:,vor to give noti,e of such non-renewal not less lhao ninety (90) day, prior 10 d end of the Fisc:il Year for which :sppropriations were made, acd shall notif J 1~essor of any anticipated non-renewal; provided failw-e to give such notice shall not onstirutc an Event of Default. In the event this Agreement expires BS provided in mis Section. L'!SSCC shall comply with the instructi ons :ecei,·ed from Lessor in iltcordance with Section 12.3. Section JJ. Effect of Termination Upon termination of this Agreement as provided in Section 3.2, Lessee shall not be responsible for lhe payment of any additional Rcnbl Payments coming due in succeeding Fiscal Y cars, but if Lcss-.e has not complied wirh thr insttuctiom received from Lessor in accordance with Section 12.3, the termination shall nevertheless be effective. but Lessee shall be rt ,ponsible for lhe payment of dmlagcs in at. amoW1t equal 10 the :unoont of the Rental Payments that would !hereafter have come due if th·s Agreement had not bt-cn \.~rminated and whi:b iltt attributable to the nwnbcr of days :ifer which Lessee fails to comply with Lessor's insauctions and fo r any \Jther luss suffered by Lessor :is :i result of Lessee's failure to take such actions :is required. Secdon 3.-1. E:tpir:itlon or Lease Term The Lc::isc Term with respect to :my Le:Jk: will e>.pire or tmni.nate upon the occurrence of the first of the following events: (:i) the termination of this Agreemtnt by Lessee in :iccordance wii.h :iction 3.2: (b) the payment of the Prep:iyment Price by Lessee pursuant to Article V; (c) an Event of Default oy Lessee and Lessor's election to lerminate such Le:isc pUffilll!lt to Article XII : or (d) lhe payment by Les.see of all Rentll Payments and all other amounts aurhorized or required to be poid by Lessee pursuant to such Lease. ARTICLE IV RENTAL PAYMENTS Section -tl. Rent2! P,ivmenu The Lessee agrees to pay to the Lessor the Rental Payments due as specified in the Payment S,bedule in E.vubit A. Such Funds shall be used by lhe Lessor solely for the pwpose of paying the principal and interest due punwuu to tlus Agreement. A portion of each Rcnbl Payment is paid as interest as speci :ied in !he Payment Schedule of e:icb lease. and the first 11,ntal Paymc,,t will include Interest accruing from the Funding Date. Lessor is .uthoriud 10 insert lhe due date of the first Rental P•)'l1>CIJa in lhe Payment Schedule in bhib;t A. All Renbl Payments shall be promp:'1 remitted by the Lessee to the Lessor. or to such wisnc<(._i Lessor has .us1gned as stipul:i.1ed in Article Xl. at such places :is Lessor or such assignec(s) may from time to time designate by written IO-UC-DOC.owatiOr.K • DOQCe to Lesaee. Lesaee shall pay die Rental P>ymen11 will, lawftll moaey of Iba Unilld SlaleS of Aqllri<a Jiom IDOlll)'I leplly available ~f. Section 4.2. Current ElQMllH Tho obligatiom of Less,:, iDcludina ill obliplion to pay Iba RCDlal Paymen11 due in any Fisc:iJ -.., of• I.me Tam, shall comtiNrO a current e,q,en,e of l.aae for llldt Filcal Yar and shall aot bo CODSINOd or illlmpmod (a) to Wr..c.ty or illdim:tly oblipte die Lwee to make .. y pa)'IDCIII in any Filcal Yar in....,. of OIDOUD!lappn,priatld for such Filcal Year; (b) U aoalina I debt Or multiple fiscal ycor direct or indim:t debt or odJer ~ obliplioa wbalsoevcr of Iba l..eaee wilhiD Ibo llllaniq of Article Xl. Section 6 or Article X. Sectioa 20 of the Colorado COllllilulio,i nr my olb.r C0111tnutional or stallltory limillalion or P,QVilian; (<) u a deleption of governmental powm by die Lessee; (d) u a loon or pledge of th., credit or failh of die Less,e or u creatin& any rapomihility by the Lessee for any debt or liability of any penoa, c:ompaay or corµnlion within the mariin& of Anide XI, Section I of die Colorldo Constitution; or (e) as • donatioa or pam by die I.alee 10, or ui aid of, any pmon, compay or <-"'J>Ol'llioo wimill die meanin& of Anide XI, Section 2 of die Colorado COlllDIIIDOO. Nolbiaa batin shall comtiti.e a plcdae by Lr...;ee of any tw:s or other moneys (other lhan moneys lawfully appropriated Jiom lime to time by or for die benefit of Lw,e for this Agrmnem and Ibo Net Proceeds of die Equipment) to the payment of any R.ent1 , Payment or other ornount coming due hemmder. Sccdon 4.3, Ugcondjljogaj R•91,,1 Payments E.«ept as p,ovided in 3.2 and 4.2, die L.....-, obliplion to make Rental Payments shall be absolute and uncooditional. Also, any olber paymenll r<qUiRd bemmdc. shall be absolute and uncoodilional. Lessee shall make these payments when due and shaU not wilbholJ any of these payments pending final n:solution of any disputes. Tho Lessee shlll not assen any right of set-off or co unterelairn against its obligation to make these payments . Lessee 's obliption to make Rmt:>.l P•yments or other payments s1,all not be abated tluoogb acciden~ unfor<seen cuaimswices, failure of die Equipment to pt'lform ,s desired, damage or destruction to the Equipmen~ loss of possession of the Equipmau or obsolesccoce of die Equipment. The Lessee shall be obligated to continue 10 make payments required of it by this Agreement if tide to, or temporary UJe of, die Equipment or any pa.1 thereof shall be taken under exen:ise of die power of eminent domain. <\RTICLE V OPTI.>N TO PREPAY Section S.t. Op!19n lo Pnpav lessee ,ball bave die option 10 P"P"Y its obligations under any Lease in whole but not in pan on a:,y Payment Date for die lhen applic,ble Prepayment Price (which shall include a pt<paymcnt fee) ,s set ford! in die related P>yment Schedule , provided !here has been no Non-Appropriation or Event of Default • Secdon S.2. E,;ertlse or OptJsn Lessee shall give notice ID Le.·,or of its uitcntion ID exercise its optioa not less dwt tbiny (30) days prior to die Payment Date on which die option will be exen:ised and shaU pay to Lessor not later dwt such Payment Date ,n amount equal 10 all Rental P,ymcnts and ,ny olher amounts then due or past due under die related Lease (including die Rental Payment due on die Payment Date on which rltc option shall be effective) and tho applicable Prepaymmt Prioc set forth in die related Payu,cm Sc!iedule. In die event tbat all such amotllllS are not received by Lessor on such Payment Date, SJCb notice by Lessee of exerr.ise of sLall I>< void and the related Le:tse shall continue in full forte and effecL Section S.J . Release of lessor•, lnte,,.t Upt · rece ipt oi die Prepayment Price in good funds wilh respect to any Equipment Group, die Leue with respect 10 such Equipment Group <hall tcnninatc and Lessee shall become entitled to such Equipment Group AS IS. WHERE IS, wrrnour WARRAN111'.S, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PUilPOSE OR FTINESS FOR TI!E USE CONTEMPLATED BY LESSEE, except that such Equipment Group shaU not be subject to ,ny lien or encumbr.mce created by or arising thro ugh Lessor. ARTICU:VJ REPRESENTATIONS, WARRANTIES AND COVENA.VTS Section 6.1. Rep[fflntadon, and Warronljg o{ LfflH Lessee repmaus and wamnts as of die Ag,=nent Date and as of e:ich Lease Date as follows : (a) Lessee~ a state politic,! subdiv~ion of the State within the meaning of Section 103(c) oflhe Code, duly organized ,nd existing under die Constin1tion and laws of die Stlte, and ~ authorized wtder die Constitution and laws of die State to enter into this Apmen~ ea ·h Lwc and die n-ansactions cootcmplatcd bcreby and diereby, and to perfottt1 all of its obligations under this Agreement andear.hleue. (b) The e,ecurion and delivery of this Agreement and each Lease bave been duly aulhorized by all necessary action of Lessee ·, aoveming bod y and such action is in compliance with all public bidding and other State and federal laws applicable tJ this AgreemcnL each ..... and die acquisition and financing of die Equipmem by Lessee. IQ,UC.DOC°"2100Y:S: (o) 'l'llil Ap'10:,,ent and <Kb Leue hive beer. duly executed 11111 de!Mr<d by ind comit1111a the valid and binding obligation of · • !Awt, 'lll'bttlli11t apimt Lcuee in accordance wilt the;, respective terms. · • our I rr,1:11.1) '.l-n111 (cl) T1lt necudon, delivery and performance oflhis Ag,t'Clll<llt and adt Leue by Lcsscc shall 1101 (Q vioiate any Sim or f~ law or local ltw o, ordlnlllc1, or 111y onler, wri~ injunction. decree, or res,ilatioa of any court or ottier govemmental agency or body- ...,uc.l,lt to L-■, at (II) coallict with or ...ult in the breel:h or violttioa of any tcm1 dr provisio• of, or constiorte a default under, my -• bond. "'°"Pit, ladonture, 'll'fflll"II~ d<ed oftrUst, l<ase er other obliption to wbith Lcsscc ii bound. (r) '111m It no ICrion. Ni~ pn,creding, claim, inquiry or iavesliptioa, at ltw or in equity, before or by any court, regulatory 1pncy, public board o, body pendlna at, to !be best of Lessee's lcnowledge. threalm:d against or alfeeting Lessee, challenging Lessee's 111tllonty to llllff Into thla Allffllll'III or any I.ease or my other action wherein III unfavotable ruling or finding would advmely affect the llll'on:nblllty ofdlil A.,_,..1 or any Leuc. (f) No lwc, rontal alffffll<II~ lease-purchase agreen;....,,,. payment ogrmnem or conaact for purchase to which Lessee 1w been a puty II any tint durinl the put ten ( I 0) yars bu been tenninatcd by Lessee "' a iesult of insufficient luads beiiB appropriated in any Fiscal Ynr. No event bu occumd which would constirute an event of default under any deb~ n:venue boad or obligation which Lessee bu fnurd durina the put ttn (10) ynn. (&) Lessee or Ltute'1 aovemins body bu appropriated and/or taken other lawful actioas nee=·• J ,:::ovide moneys sufficient I to pay all Rental Paymenta durina the curm>t Fiscal Year, and such moneys will be applied in payment of •II Rental Payments due and payable durill& such cumnt Fiscal Ynr. (h) l.asce bu an immediate need for, and expec!S ID make immediate use of, the l:quipmen~ which need is not temporary or expected to dirniniJlt durina the applicable Lease Term. Lessee pr,sendy intcnds to continue each Lease hereunder for its entire Leue Term and to pay all Rental Payments n<latina !homo. (i) Lessee has undertaken msonable efforts to determine whether all matmal Date Affected Information Technology used in i,s business operutions is Fully Date Capable. and, ID the extmt necessary, Lessee 1w initiated elfom to make Date Affected lnfonnation Technology Fully Date Capable prior ID the date that the failuro to be Fully Date Capable would aversely affect the operntion th=of. Stcdon 6.1. CO¥ffllnU o[ L ..... Lessee II"'<' that so long as ID)' Rental Payments or other amounts due under this Agrwnent. remain unpaid: (1) Lessee shall not ins1all, use, operate or maintain the Equipment impmper!y, can,lessly, in violation of any applicable law or regulation or in a manner contnry to that cootanpllled by thil Apeement Lessee shall obuin and mainlDin all pennits and licenses necessary for the installation and operation of the Equipment Lessee shall oo~ without the prior written consent of Lessor, alfJX or install any accessory equipment or device on any or the Equipment if such addition would change or impair the originally intended functions, value or use of such Equipment (b) Lessee shall provide Lessor occ1111t all reuonahle times to ewnine and inspect the Equipment and provide Lessor with such access to ite Equipment u may be reuonably nttnsary to perf'onn maintenmce on the Equipment in the event of failure by Lessee 10 perfonn its obligations hereunder. (c) Lessee shall no~ dire..~ly or lndirecdy, mate, Incur, wume or Nlfer to exist any mongage, pledge, Lico. charge. encumbrance or other claim with rtSpect to the Equipmen~ other than the mpective ri&hts of Lessor and Lessee as herein provided. Lessee shall promptly, at its own expense, take such acrions u may be necessary duly to discharge or remove any such claim if the same shall arise at any time . Lessee shall roimbune Lessor for my expense lncumd by Lessor inorder10 disclwge or remove any such claim. (d) The prnon or entity in charge ofpn,plrina Lessee's budget will include in the budget request for each Fisc:l! Yer.r the Rental PaymenB ID become due durin& such Fiscal Ynr, and will we all 1SOnable and lawful means available to secw. the appropriation of money for such Fiscal Y nr sullkient to pay all Rental Payments comina due therein. L .. sor acknowledges that appropriation for Rental Payments is I governmental ftmction which Leuee cannot con:ractually commit itself in advance to perform. Lessee aclcoowledges that this Agreement does not constirute such :a commitment However, Lessee rns:00..b!y ~dicves that moneys in an mount sufficitnt to make all Rental P3ymcnt5 c:in and will lawfully be appropriated :ind made availllble to ~.''Tni~ L~s5ee's continued utiliziltion of the Equipment in the perfonnaoce or i,s essential functions during the applicable Lease Tem.s. (e) Lessee shall assuro th.at its obligation to pay Rental P•ymcnts is not dir<ctly or i.::dir,cdy secured by any interest in property •• other than the Equipment and that the Rental Payments will not be direcdy or indi=dy securod by or derived from any payments or any type or any fund ot!1cr than Lessee's general purpose fund. IC>UC.DOCOWU.OO r.K (t) Upon Lessor 's requat. Letsee sha1J pn,vide wsor with curmit ftnancial SlllanODlS, lJudgm, and proaC of dppropria\ion for the C11SUU11 Fiscal Year 11111 such other fDWY.ial infonnalioa relating ID the ability of Lessee to continue Ibis Apeancnt 11111 eoch'Lcuo u ... ybe ""50111bly r.ques,..t by Leuor. . l&l Lessee shall prnmpdy and duly Oll<CUIO 1111d deliver to Lessor such filrther documents, instrumeolS and 1SSUt1DCCS 11111 rake such filnher action u Leuormay fiom lime., ,imc r:uonably r,que,t in onler10canyoutdle inttntand purpose of this All"ffll<llland ID esllbllsh and protecttherigblS IDd remedies c,,4ted orinlended to bee...ted in favorofLessorbemmder. :<i<ctlon 6.J. Tu Reflttd BrPm!Dll,1vnL Wamnda and C9!ffllQII M lnco,porarion of Tai AfTM"lllr aJld ,t,!,•tra~ Cmijicar,. As of eoch Leue Date and with respect each J.nse, Lessee malc,s each of die ,,,,....,,..lions, Wlffltlties IDd covenants cor..-.ined in the Tax Agreement and Albitrage Certificate delivmd with "'J'«I 10 such Lease . By this rofemice each such Tu A.,..._r and Alb:!!':.1c C::r-w',c:.,n, is incorponted in :md made a partof dlis Agreement. (b) Ev,nr of Ttuabllily. If Lessor either (i) m:eives notice, in any form, 6:om die Internal Revenue Service or (ii) re:isollllbly determines, based on an opinion of independent laX coumel sel«ted by Lessor, that Lessor may not exclude any lnret<St paid under any Lease ftom iis Fcder.ll gross income (each ,n "Event of Taxability"), the Lessee sball pay to Lessor upon demanrl (x) an UIIOWlt .,hich, with "'J)eCI 10 Reotal Payments previowly paid and taldns inll> account all penalties, fines , interest and additions to tax (including all fedmL state lllld IOC11I taxes imposed on the llllfflst ctae throu1h the date of such event), will -II> lasorilS after-llX yield(as.swnillg IIX at the highest 1111t1inal IIX rate and llkms inlD account the lime of m:eipt of Reo11J PaymenlS and reinvestment at the after-llX yield rate) on the transaction evidenced by such Lease thruuaJt the date of such event 1111d (y) as additional Rental Poyrnents to Lessor on .. ch succeeding Payment Date sucb amount u wm mainllin sucb afti:r-laX yield 10 Lessor. ARTICUVD INSURANCE AND RISK OF LOSS Section 7.1 . L11bUJtv •nd P,ypeny lmunnn Lessee shall at its own expense, procun: .ix: mainllin continuously in effect during die Initial Lease Tenn and eoch Leue Renewai Tenn : (1) public liability insurance for death or injuries to persom , or damage 10 property arising out of or in any way cr,nnected II> the Equipment sufficient 10 protect Lessor :md/or mign, from liability in all events, with a. coverage of not Jess than s1,000.oro per ocaum,c:e unless specified differently in the related Equipment Schedule, and (b) imunutce ~ such bawds as Lessor may r.-quire, including, but not limited 10, all-rislc casualty and property insur.mce, in an amount equal ID the gmater of the full replacement cost of the Equipment or the applicoble Pre;,ayment Price of each Equipment Groop . Secdon 7.Z. Workers' Comp<madon !ftlllnnce If required by State Jaw, Lessee shall cmy woricers' compensation insurance covering all ~loyees on. in, ne:ir or abcut the Equipment and upon r,qucsl shall furnish to Lessor certificates evideacing such coverage thnJuahout the Lease Term. Section 7.3. Jpsunnce Roqulmne11ts (1) /nsuranc, Polici£r. All insurance policies required by this Article sholl be talten out and mainllined with insuru><:e companies acceptable 10 Lessor and shall contain a provision lhat thirty (30) days prior to any change in the covmge the inswcr must provide written notice to the insured puties . No insurance shall be subjffl 10 any co-inswonc:e clause. Eoch insurance policy shall name Lessor .md/or its assigns as an additional insured party and loss payee regudless of 311Y breach of wamnty or other a.ct or omission of Lessee and ,ball include• lender's loss payoble endorsement for the benefit of Lessor and/or is assigns . Prior to the delivery ofEquipmenl Leoo,e shall deposit with Lessor evidence satisfactory 10 Lessor of sucb insurance and, prior to the expiration thereof, shall provide Lessor evidence of a!J m,ewals or replacements thereof. (b) Self /nsuranc,. With Lessofs prior consenl Lessee may self-insure the Equipment by means of an adequate insw:mce fund set aside and mointlined for that purpose which must be fully described in• letter delivered to L<ssor in form meptlble to Lessor. (c) Evidence of /nsuranct. Lessee shall deliver to Lo,:sor upon occeptance of ,ny Equipment evidence of insurance which complies with this Article VIl with respect to such Equipment 10 lhe satisfaction of Lessor, including, without limitation. the confirmation ofinsur.mce in the form ofE.-tlubit F-1 altlched hereto together with Ccrtificates of Insurance, when available, or the Questionnaire for Self-Insurance ond Addendum 10 Equipment Schedule Relating 10 Self-Insurance in die fonn ofExlubit F-2 attached hm1o, as applicoble. Secdon 7,4. Bl!!!.!{,Lm_ To the extent permined by ,pplicable Jaws of the Stlte as between Lmcr and LffiCe, Lessee assumes a,,D risks and liabilities fiom any cause whatsoeYcr. whether or not covered by insurance, for lou or damaae ID any Equipment and for injwy Wo or d .. th ofany person or dom:ige to any property. This provision shall survive die tmnination of this Apment IQ.UCDOC.otn._.V:K St<tton 7,5. Pfflrvcdon of Egujpmml Lessee shall provide I c:oq,ieu, wrilllll report la Leuor immediln,ly upon ■ny lo~. lhet). damqe ordeslnlelionof111y EquipmeuundofOD)l,"''·;&.~~IDY Equipowm. i.-m■y UllfOCllbo Equipma,rar ■ny time and Crom time la time clurina lq1ll■r businesl baun ',q ~ia,!li Clla 10SecGf1!11J ■nd4,l, if all or ■ny pllt o(dlt Equipmmt is stolen, las~ deslrnyed or damaged b<yoodRplir("Dllr-"!;ed E.JIIIPlll!"ll"), La■er • all widiin miny (30)d■y■ ■ftssucbovaucidler (,j • replace the same 11 Less .. 's sole expense with equipr,,..Jt bavin1 sublt■ntially sh ,., Speciftcatiom and or equ■1 or Jll'Otel' v■luc 1a • ·,e D■mqed Equipment imo·,:diawy prior ID tbe time c.Clbe lou o.:c:wmice, aucbtqll■c.-equipa!all to be llli>jecl 10 Lcuor's ■pp,ov■L wbemlpoo such 1<placement r 1uipment shall be su'Jllilwal ill £1< ■pplic■ble LaM and lhe other relalod dacuamm by ■ppropriam endorsement or ■mendmr:,~ or (b) pay die ■pplicr.ble Pnptymmi Price of lhe Oamopd Equipmmt detmmiaod 11 1111 fu,1lt ill ti,,. related Equipment Schedule. Lessee shall notify Lessor orwbichcoune or action it will lake within fifteen (IS) d■ys after die loss occurrence. Ir, within fony.five (4l} d■y, orlhe loss occurmice, (a} L~ fail& IO IIOlify Laaor; (b) ~ and Lesa fail to executo 1111 IIIIIDdment 10 tbe :,pplic.ble Equipmer.t Scbedwe 10 delete lhe O■m■ged Equipmem and ■dd lhe reploccment equipment or (c} Leuec bu r■iled ID pay die ■pplic.ble PcepayrJOnt Price, then LCSIOl m■y, .. illsolc disaetioo, declare tbe lfllllic:able Pnptymeot Price o(tbc o.m■,ed Equipment. to be immediatcly due and pay.ible. The Net Proceeds or iosunmce with iespec110 lhe Damaged Equipment shall be made •vailable by Lessor 10 be applied 10 di.scllarge Lessee ' obligation under Ibis Sectioo. ARTICU:VIll OTHER OBLIGATIONS OF LESSEE Sectlon 8.1. ~nee of Egujp!PJnl Lessee sball llOlify Les•,or in writing prior IQ moving the Equipmen110 3110lher :iddress and shall otherwise keep the Equipment at the addras specifl<d in the 1elall0d Equipment Schedule. Lasee sball. at its own e"PCflS", maintain tbe Equi:,men1 in r,roper working order and shall make all ..,,essary rq,ain and replacements to keep lhe Equipmem in such condition inclu~.mg comp liance with Stale and fcdcr>J laws. Airj and all replaccmmt pans must be &ee of cncwoht>nces and liens. All such replacement pans aud accessories shall be deemed to be incorporated immediately into and to con.,tinue an integral portion of the Equipment and as such , shall be subject IQ die tcrms of Ibis Agn:em,.ttL All obligations of lhe Lessee under Ibis Section shall be subject 10 Section 3.2 and 4.2. Section P..Z. l!!g_Lessee sball pay all tllt.'S and olhtc charges which an, assessed or levied agai:,st the Equipment, the Ren13I Payments or any part lhcrco~ or whicb become due during lhc Lc:ise Tenn, whether assessed against Lessc: or Lessor, except as expressly limited by this Section. Lessee shall pay all utilities ■nd other clwJes inCUtrCd in the operation, maintcnacce, use, occupancy and upkeep of the Equipment ond oil special assessmoots and chatics lawfully made by lilly govemmcolal body that may be secured by • lien on ~ Equipment. Lessee shall 001 be miuin:d IQ pay any fedml, stale or local income, succession, lr.UlSter, fr.uicltix, profit, excess profi- capilal stock, gross receipts, corpor;Ue, or other similar IIX pay>blc by Lessor, its successors or wigos, unless such IU is made as a substitute for ony .._,, asS<SSmcol or cltarge which is the obligatioo of Lessee wxler Ibis Section. All obligatioos of lhc Lessee under lhi, Section shall be subject 10 Sections 3.2 ■nd 4.2. Section 8.J . Advances Subject 10 Sections 31 and 41, iI Lessee shall fail IQ perform any of its obligations uoder this Anicle, Lessor may take such action to CW'C such failure, including the advancement of money, ;ind Lessee shall be obli;a~ to ~•Y ;di such advilnces on demand. with interest at the rate of 18% per annum or the maximum rate pcrmined by law, whichr.ver is less, from the date of the advance IQ the d■tc of repayment ARTICLE IX TITLE Section 9.1 . m, Ownrnbip and legal title of all Equipment and oil replacements, substitutions, repairs and modification shall be in the name of Lessor and Lessee shall take all action necessary to vest such owncrmip and title in the Lessor. Lessor has ownership and legal title 10 the equipment solely for purposes of establishing a mortgage in the Equipment pursuant 10 Section 91, and by this Agr .. men1 and each Lc:ise. is merely financiog the acquisition of such equipmc:nt for Lessee. lessor docs not opmte, cOIUJ'OI or ba\'e possess ion of the Equipment and has no conttol over the Lessee or lhc Lessee 's operation, use, smrage or maint,nance of the Equipment Io lhe event of :wignment by the Lessor of the Rental Payments :md other amounts due under this Le3sc:, Lessor shall continue to hold title to the Equipment Lessor shall no tify Lessee specifically with respect lo any lr.UlSfcr oflcgal title 10 the Equipmeot Section 9.2. s«uritv Interest Lessee hereby grants ,, Lessor, continuing. first priority pcrfCCICd security interest in and to the Equipment aod all repairs . replmmCIIIS, substitutions and modiIIC:llions thmto in order 10 secure Lessee's payment of aU Reo131 Payments and the performance of all other obligations. Lessee will join with Lessor in executing such financing statements or other documents and will perfonn such acts "' Lessor may tequ<SI 10 establish and maioain Lessor's valid fine lien and pcrfecled security interest If t?ques1ed by Lessor, Lessee shall obtain o laodlonl and/or mongagcc's consent and waiver with t<Specl l0 the Equipment. Ir tequ<Sted by Lessor Lessee shall consp ic uously mark lhc Equipmen~ and maintain such maoonas during lhc Lease term, 10 clearly disclose Lessor 's sec~ interest in the Equipment. Upon termination of a Le.ise through exercise of Lessee 's option to prepay pursuant to Article V or through ~yment by Less ee of all Rental Payments and other amourtts due with respect to an Equipment Group, Lessor 's security interest in such IO-bCOOCWlMIOY:IC. 7 E,p,ipm,Dl ll'0UP 111111 tmninarc, Lessor shall execurc 111d deliver to LCSlee such documents u may be a,cessary 10 ovideDce 111111Sfor of tide in u:b Equipmmt Gn,up 10 Lessee, and Lessor shall execurc and deliver 10 Lessee such documents u LCSlee may rasoaably request fl evidalce die rcrmilllion of Lessor's securiry inrcrest in such Equipment Group. · Stclloa 9.3. ModlQgtjon o{ Egulpmenc Lessee will oo~ without !be prior written consent of Lessor, affix or install any actaSOry equiprr~"III or device on any of lhe Equipment if such addition will change or impair the originally illrcnded value, l\mctioo or use of die Equipment S.Cdoa 9.4. Prnon1i Prop,rtv The Enuipmcnr is and shall at all rimes be and remain person.al property and 001 fixtlllCS. ARTICU:X WARRANTIES Section 10.1. Selecdon or Egulpmenc Each Vendor and all of the Equipmcnr have been selected by Lessee . Lessor shall have no r,:spons1biliry iD connection with tbe selection of tbe Equiproet11, the ordering of the Equipment its suitabi liry for the use iDrcaded by Lessee, the acceptancc by any Venrlor or its sales reprcsentadve of ury onler submilted, or any delay or faihue by such Vendor or its sales representative 10 manufacture, deliver or install any Equipment for use by Lessee. S.Cdon !OJ. Vendor's Warnndcs Lessor hereby assigns 10 Lessee for and during tbe relarcd I.ease Tenn. all of its iDrcrcst if ■ny, in all Vendor's warranti,s, guaranrecs and paten! indemniry protection. "'P'e" or implied issued on or applicable 10 an Equipmenl Group, and Lessee may obtain the customary scrvicrs furnished in connection with such wamnties and gu:iranrecs 3t Lessee's e:tpense . Lessor bas no obligation 10 enforce :,ny Vendor's warranties or obligations on behalf of itself or Lessee. S.Cdon 10.3. Disdllmer o[ Warrondes LESSEE ACKNOWLEDGES TiiAT THE EQUIPMENT IS OF A SIZE, DESIGN, CAPACTIY, AND MANUFACTURE SELECTED BY LESSEE. LESSEE ACKNOWLEDGES TiiAT IT SaECTED lHE EQUIPMENT WTillOUT ASSISTANCE OF LESSOR. ITS AGENTS OR EMPLOYEES . LESSOR IS NOT A MA.'ltJF ACTURER OF THE EQUIPMENT OR A DEALER IN S!Mn.AR EQUIPMENT, AND DOES NOT INSPECT THE EQUIPMENT BEFORE DELIVERY TO LESSEE. LESSOR :-.tAn:S NO WARRANTY OR REPRESENTATION, EJ1liER EXPRESS OR IMPLIED , AS TO THE VALUE. DESIGN, CONDmON . QUALITY, DURABILITY, SUITABlllTY, MERCHANT-ABlllTY OR FITNESS FOR ANY .ARTICULAR PURPOSE OR FITNESS FOR THE USE CON'!R!PLATED BY LESSEE OF THE EQUIPMENT, OR ANY OTiiER ~RESENTATION OR WARRANTY WTill RESPECT TO THE EQUIPMENT. IN NO EVENT SHALL LESSOR BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES IN CONNECTION WTill OR ARISING our OF nus AGREEMENT OR THE EQUIPMDIT OR LESSEE 'S USE OF THE EQUIPMENT. ARTICLE XI ASSIGNMENT A.'ID SUBLEASING S.Cdon ll.l. Asslgm.•mt hv lessor Le55or, witbout Lessee's consen~ may wign and reassign all or pan of Lessor 's rigb~ title and/or iDrercst iD 311d 10 ibis Agreornenr or any Lease, iDcluding, bur nor limited 10, tbe Rental Payments and oilier amounts payable by Lessee and Le550r's inrcrcsr in Ille Equipmen~ in whole or in part to one or more mignec, or subassignee(s) by L=r at any lime. No such .wignm,nt shall be effective as against lessee unlw 111d until writb:D notice of the wignmcnr is provided 10 lessee. When presenrcd with • notice of assignment Le55ee will acknowledge iD writing receipt of such notice for tbe benefil of Lessor and any a55ignec . lessee shall keep a comp I ere and •ccurate record of all such assignments. Stction 11.2. Assignment 1nd Subleasing bv Lesstt Neither this Agreement nor any Lease or any Equipment may be :issigned. subleased. sold. 11>1Uferred. pledged or mottgaged by Lessee . ARTICLE XII EVENTS OF DEFAULT A.'ID REMEDIES Stcdon 12.1. Events or Default DeOntd The occurrence of any of the following events shall constitute an Event of Default under Ibis Agreornrnl and each Lease : A (a) Lessee's failure to pay, witbin ren(I0) days following the due dare thereof, :,ny Rental Paymenl or oilier aroounl required 10 be W!,aid 10 Lessor (other tban by r<350n of Non-Appropriation). (b) Lcsse</s failure 10 maintain insurance., required by Article Vll. IIQ•ESCOOC.OWlMO r.J: 8 (c) Wilh lhe exception of lhe above cl:ws<s (a) & (b), Lessee's lailuR ID perform or abide b~ any coodilion, &gRCIIICIII 0! covenant for• period of lhiny (30) days after wrillffl notice by Leasor ID Lessee spe<ifyiq such faihft 111111 RqUCIUIII 11111 it be remedied, unless Lessor shall ap in writing 10 an exl<nlion of rime prior 10 its expiration. • (d) Lessor's detmninalion WI any reprnenmtion or wamniy nllde by Lessee in this AllfflD'III was unaue in 1111y nwcri&I l<SJ)CCt upon execution of this Apment or any Equipment Schedule. (e) The occurreoce of an Event ofTuabiliiy. (f) The filing of a petition in bankruptcy by or against Lasee, or failure by Lessee promptly to lift any execution, gunishmen1 or anaclunen1 of such conseqU<11Ce as would impair lhe abiliiy of Lessee ID caay on its govemmenial nmctions or assigmn,n1 by Lessee for lhe benefit of cmli10rs, or lhe entry by Lessee into an ag,mnen1 of composition wilh cmli10rs. or lhe :,pproval by a coun of competent jurisdiction of any adjusanent of ind,btedness of Lessee, or lhe dissolution or liquidation of Lessee. Sttdon 12.2. Rtm..Ua on O.[ault Upon lhe occWTC11Ce of any Event of Default, Lessor shall have the right, at its oprion and without :my further demand or notice to one or more or all of the following remcdic.!: (a) Lessor, with or wilhoul terminating this Agrcemc:nl or any Lease, may decwe all Ren1al PaymcnlS immediately due and payuble by Lessee, whert11pon such Rental Paymeots shall, subject 10 Stttions 3.2 and 4.2, be immediately due and payable. (b) Lessor, ,.;lb or wilhout terminating Ibis Agreement or any Lease, may repossess any or all of the Equipment by giving Lessee wrillffl notice 10 deliver such Equipm,nt in lhe m,nner provided in Stttion 12.3; or in lhe event Lessee fails ID do so wilhin Ion (10) days after receipt of such notice, Lessor may enter upon Lessee 's prmtises where such Equipment is kept and rake possession of such Equipment and charge Lessee for costs incwred, including =nable anoroeys ' fees . Lessee hereby exprtSSly waives any damages occ>Siooed by such repossession. If lhe Equipment or any portion has been destroyed. Lessee shall pay lhe applicable Prepayment Price of the destroyed Equipment as set forlh in the related Payment Schedule. Regardless of lhe fact WI Lessor has taken possession of lhe Equipment, Lessee shall continue ID be responstble for the Rental Payments due during the Fiscal Year. (c) If Lessor terminates Ibis Agm:nt<111 and/or any Lease and, in its discretion, takes possession and disposes of any or all oflhtart, Equipment, Lessor shall apply lhe proceeds of any such disposition 10 pay lhe following items in lhe following order. (i) all cosr9' (including, bur nor limited ID, attomeys ' fees) incum:d in securing possession oflhe Equipmea~ (ii) all expenses incurred in completing lhe disposition; (iii) an)' sales or lr.lmfer IJXes ; (iv) lhe applicable Prepayment Price, of lhe Equipment Groups; and (v) lhe balance of any Rmral Paymcnrs owed by Lessee dwing lhe Fiscal Year lhen in effect Any disposition proceeds remaining after lhe requimnmts of Clauses (i), (ii), (iii), (iv) and (v) have been met shall be paid to Lessee. (d) Lessor may take any other remedy available, at law or in equity, with respect to such Event of Default, including those requiring Lessee ID perfonn any of its obligotioos or IO pay any 1110neys due and payable ID Lessor and Lessee shall pay lhe reasonable anomeys ' fees and expenses incum:d by Lessor in enforcing any remedy hmuader. ( e) Each of lhe fon:going remedies is cumulative and may be enfon:ed separately or conturm1dy . Stcdon 12..l . Return of £gulpmenl: Release or LtsSff'S Interrst Upon termination of any lr.lse prior to the payment of all n:la1ed Rental Payments or lhe applicable Prepayment Price (whether as result of Non-Appropriation or Event of Default), Lessee shall, subject ID Sections 3.2 and 4.2, wilhin ten (10) days after such termination, at its own expense: (a) petfonn any testing and repair, required 10 p!.,ce lhe n:loted Equipnt<1tt in lhe condition n:quired by Anicle vtlJ; (b) if deinstallation, disassembly or crating is n:quired. cause such Equipment to be dcinstalled. disassembled and crated by an authorized manufacwrer 's represencuive or such other servii.:c person as is satisfactory to lessor; and (c) return such Equipment to a location within the City limits of the Lessee specified by Lessor, freight 3nd insurance prep:iid by lessee . lf Lessee rc fusi• = 10 recum such Equipment in the manner designated, Lessor may repossess the Equipment without demmd or notice :ind without court order or legal process and charge lessee the costS of such repossession. Secllon 12.4 ~-Lessor shall have lhe right ID require late payment c~e for each Renral or any olhcr amount due hereunder which is not paid within lO<bys of the date wbcndue eqWll to the lesser of 5% of each late payment or the legal maximum. 11us Section is onlv :;ppiicable to the extent it does not affect the validity of this Agreement. ARTICU:XJD MISCELLANEOUS PROVJSIONS • Section 13,J, t!lllm.All wri~ nocices 10 be aiven ~ Ibis Apeeminr shall be ~en by mail 10 we pony mtitlcd dxretD 11 .... addms specilled bennlh each pony 's ,ipllwe, or II SU<b lddilll u rbc pony may provide 10 die other ponies ba-e10 in wrilina Crom time 10 rime. Ally such no tice shall be dmncd to have been rocrived 72 boun ofter dq,osit in die Unilal Stazs mail in rqis.....i or cenil!ed form, withpoaage fllllypropald, or, itaiven byodicrmeam, whendelivemhtllle llddresa specifted in 1111s Seclloo 13.1. Seedoa IJJ. Qlpdlng J!aUI This AilfflDCDI u.d .. ch l.eue b<fflllldcr shall be bindiD& upon 1111d sball...,. ID Ibo boaelil of I.mar and Lessee ond their resp,,:tive succ:euors and wip. Specifically, u used ber<in Ille tmn "Leuor" m<am any penon or entity to whom Les5or bas assigned its ri&ht ,, ...:ave Rental Payments under any Lease. Section 13.3. ~In Ibo event any provision of !bis Apement or any Lease shall be held invalid or UDCDforteable by any cowt of competent jurisdiction. such holding shall oor invalida,. or t<Dder unenforcnble ony olhor provision baeof. Stctlon 13.4. Endre Aqttment; Amendments This Apmnenr constirures Ille entire aa=menr of the parties with re,pecr 10 Ille subject matttr hereof and supersedes all prior and conremporaneow writings, undmt>ndings. agi=nents, solicilllion documents and r,pre,entations, express or implied. This Agrmnenr may be amended or modified only by wrinen documents duly :wthoriz,d, execu~ and delivered by Lessor and Lessee . Section 13.S. ~ The c:iptions or he:idinp in Ibis Agreement ,re for co nvenience only and in oo way define, limit or descnbe the scope or intent of any provisions. Anicles, Sections or Clauses hereof. Section 13.6. Further A,npnces apd Comcdve lnstruqwng Lessor and Lessee agr,e thll thoy will, from rime to time, execute, acknowledge and deliver, or came 10 be executed, acknowledged and delivered. such supplements befflo and such further instrwnenlS as may =sonably be ~ for comcrina any inadequate or incomct description of the Equipment hereby lea,ed or intended so 10 be. or for olllerwise carrying our the expressed intention of ibis Agrmnent Section 13.7. Governing La,. This A-.,nent shall be governed by and consaued in accordance with the laws of the Stare. • Secdon 13.B. li!J!!:!.lt is the intention of Ille parties hmto ~ comply with :my applicable usury laws; accordingly, it is agn,ed dw. ootwithstanding any provisions lD the contrary herein or in any Equipment Schedult, in no event shall rhis Agrmnent or any Lease bcmmdcr require the oaymc:nt or permit the collect!on of Interest :,r any amount in the DINre of Intmst or fees in excess of the llWWIDUll UIIOllDI permined by applicable law. AJJy such excess Interest or fees shall fun be applied 10 reduce Principal. and when no Principal =ins, rof\mded to Lessee. In detcnnining whether Ille lnimsr paid or payable exceeds the highest lawful r>tc, the total amount of Interest shall be sprnd through the applicable 1.eue Tenn so that the lntel<St is uniform through such term. Section 13 .9. Lfflff's Performance A failure or delay of Lessor to enforce a.oy of the provisions of this Agreement or :my Lc:ise sh&ll in no way be construed to be .i waiver of such provision. Secdon 13.10. Waiver or Jurv Trial Lessor and Lessee hereby waive any right to aial by jury in any action or proceeding with respect to, in c0Mectior1 with or arising out of this Agreement [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK) IO-D(.DOC.OWUOO Y!K 10 EXlctmOl'I PAGI: Of MASnRLEASI AGREEMll'IT t•· ,, I u ') 'v.~ l l. "' J LlASI l'l1JMIIR 01 IN WITNESS WIIDIOJ, Lalor 1111 camed ihls Apemcat 11> be executed In i1S corpon1e mme by i1I duly lldborized officer, 111d Lcssee bas Cllll<d dlis AIIR"ftlOIII ID tie ........i in i1I IIIIIIO by i1I duly IUlborized officer. a1y or Enpwaoc1, Lessee By: Name-,----------- :::---------- Address: 1000 Englewood Parkway Englewood, CO 80110 Telephone : 303-762-2300 Facsimile: 303-789-1125 IJO.aCJJOC.OWlMlllr.JC 11 Sutro & Co. lncorponted, L<ssor ~~-,----------~:: ----------- Addms : 165 South Union Bouleyard, Suite 450 Lakewood. CO 80228 ,1 Telephone: 303-988-5800 Facsimile: 303-938-6300 0 iOOIJBITA ,, fQUIP~u:~ N0.01 • The followins Equipment~ an l!qlllpl!f.1u o\dup w1.1cl. ~the~ ofdle Marla' Lax A.,_i datod u of the '6chdayoft>ecmber1 2000(dle"Apanall"j bctw-, dlelllldeniped LeuarNldl.cuee. TIie Apoaalil ~,.... ill ill emimy, and i-bacby ...mnm eoc11 orill ~ Wlfflldiel md COYOIIIIIII COlllamod ill die A..-, Lluee Wlfflllll 11w 110 Noa-Approprialion 111d 110 Efflll of Defaull. or OYall wbich, widi die p11111e or 'ime or Ille tilvlai or IIOlice 'or bocb, would consti1p1t 1111 Event of Dcfiul~ bu ocamd under die ApcmcaL AA Accq,cmcc CenificaGI 111d ~ Schedule 11" wchcd ID dlis Equipment Scb<dule and by ..f'emx:e IR llllde I pllt bmeo£ The Imm capillliffll in dlis ~ Schedule but 1101 defiDcd bmin shall have du: rneaninRs wipd ID them in die A.....,,..,i. ' IOYJPMENT GROUP The -of die: Equipment Group ID be tlmded by Lessee under dlis Lease is $396,047.50 (die: "Acquisition Cost"). The Equipment Group consists of!he foDowius Equipment which bu been or shall be purcbued fiom die: Vendor(,) named below for the pices SCI tbnb below: lblormadoo II ■llacbtd bentol TIie Equipment Group is or will be located II die foDawiug addies,(es), Prior to relocation of die: Equipment Group or any portion thereof during du: r.eue Term. l.asee will provide wriaen notice ID l.CSlor: City or En1Iewood, l.eslee Name: ________ _ Tide:---------- D111:: -------- Address : 1000 Englewood Parlcway Englewood, CO 80110-2304 Telephone: 303-762,2300 Facsimile : 303-789-1125 IOOO[llpW1IOCIP.irtw■y Entpewood, CO 80110 12 Sntro & Co. lncorponted, Lessor ~~-,--------- Tide : Dau:: _______ _ Address : 165 South Union Boulevard. Sula: 450 Lmwood,CO80228 Telephone : 303-988-5800 Facsimile: 303-988-6300 • 11111 1 1.l I II I I LcueNo.: 01 • £quiprnm& Scllldllc: 01 ACCIPTANCI CIJlTIFICATE I, tbe Ulldmipd, beroby ccnify that I am tbe duly qualified and acq officer ofthr Leaee MMI!~ bet,o,!. md, wi11t mpccl to lhe above r<fermced Equipmenl Sdialule and La,e, lhat I. All Equpt,1 I<! fonh in Equipment Sch,dule No. I bu been delivaed and UIIIII¥ in occ6rdm:e wi1lt l.me<'s specificotions, is in aood working order and is !Wly opentionaJ and has be:a IWly accep"'1 by Lesoee oa or bef01< 1he date indicated below. 2. Attached are (a) evidence of imu=ce wi1h rapctt ID 1he Equipmont in compliance wilh Anicle VD of 1he Agroemen~ (b) Vendor inyoice(s) and/or bill(s) of ,ale r<latiag to the Equipmeat, and if such invoices ba-.. been paid by Lessee, evidm:e of payment lheroof(evidence ofofllcial inlml ID reimbune sur.hpaymen1 u requiml bytbe Code havin& been deliveml separaa,ly by I.me<); llld {c) firumcing statements executed by Lessee as debtor and/or di, origir:al cenifi::a,, of title or marm&c:tum's c:ertillrate of orijin and title application, if any, for any Equipmeut which is subject to certilicaa, of tide Jaws. 3. Rental Payments shall be due and payable by Lessee on die dates and in die amounts indicated on 1hr Payment Schedule anached 10 lbe Equipment Scbedule. Lessee bas awropriated and/or Ille.en other lawful aaioas oeces,wy ID provide moneys sufllcienl to pay all Rentll Payments mjuired lO be paid under the Lcue for the nal Fiscal Year of lessee. Such moneys will be applied in payment of all such Rentil Payments due and payable during such Fiscal Year. Lessee anticipates that sullicienl funds shall be available to make all Rental Payments due in subsequent Fiscal Years. 4. Lessee hereby authorizes and directs Lessor IO fun •; the Acquisition Cost of the Equipment by reimbuning Lessee for invoice prices previously paid by Lessee. S. Final Accepllnce CertUlcal<. This Acceptince Certificm constitutes fin,! accepcmce of all of lhe Equipment identified in the Equipment S.:bedule descnoed above . Lessee certifies that upon payment in accordana: with pm graph 4 above Lessor shall have fully and satisfactorily performed all ofits covemnts and obligations under the Lease. • City of Enalewood, Lessee By: _________ _ Name: _________ _ Title: _________ _ Dart: • IQ-UC.DOC.DtfliOOV"'.J: 13 Non-Escrow !XHIBITB-1 JAX AGREEMENT AND ARBITRAGE CEBIIIJCAJli ApmcntNumber:01 liquipmnlSchedulo; 01 This TAX AGREEMENT AND ARBITRAGE ClR'ImCAn (tlw "Cenilicate1 is ww:d by Ciry of Englewood ( 'le,see") in favor of SUTRO & CO IN CORPORA TED ("Leuor") in COIIIIC<lion will: :1111 certain M.u1er Lease Apeemau dated as of May 17, 2000 (lhe "Agreement"), by and berwem Lessor and Lessee. The tcnns capitalized herein bur oot d,fined herein shall have tho meanings wiped to them in !he A8Iffl11C111. Section I. I. I. This Ccrtilic,ue is c.ucUle<I for the purpose of esllh1isbing the rcuouble expectations of Lessee as to fulllre events rcprding the financing of ceruin equipment (the "Equipment') to bt acquirod by Lcsaor and lwcd to Lessee pursuant to and in accordance with the Agrccmeor r,fercnced above (together with all rcLued documents executed pursuant thereto and conrcmporancously herewith, the "Financing Docwncots"). As d<Scnbed in the Financing Ooo;mcors, Lessor shall apply ~ (the "Principal Amount") toward the acquisition oftbc Equipment and Lcsscc shall make r.cnral Paymcors Wider the 1mns and conditioru as set forth in the Financin& Documaus. 1.2. The individual executing tlw Ccrtilica1e on behalf of Lessee is an officer ofLcsscc d,lcgared with the mponsibiliry of reviewing and cxccutin11 the Financing Oocumcnis, pursuant 10 the resolution or ocher official action of Lessee adopted with mpccr to the Financing Documcots, a copy of which bas been delivered 10 Lessor. lJ. The Financing Documcots arc being entered into for the purpose: of providing funds for financing the cosr of acquiring , equipping and insralling the Equipment which is essential 10 the govemmcnlal functions of Lessee, which Equipment is dcsaibed in the Equipment Schedule . The Principal Amount will be paid lo the Lcsscc on the d11e of WIWlCe of the Financing Docwnmrs to r,imbur,e Lessee for moneys adv111ced for payments of the Equipment pwsuaot to and in accordance with Resolution No. 47, Series of l9S.8 IIDcbedhcttto. • 1.4 . Lessee will forward 10 Lessor for timely fil • r.,,. re ·:~ paymcol schedule :55\ICd Wider the Apemau a Fann 8038-G (or . if the invoice price of the Equipment under such scbc '.htlf u ·; .ft .t,.,;;i $100,000, a Fann W38•GC) rel.iring to such Agnemcnt with th,: lntmw Revenue Service ill accordance with Section 1491•, "! 'I><' l',tmw Rcvcoue Code of 1986, u amended (the "Codc'). 1.5 . Less -·-. bas nor irsucd, and reasonably anticipai.s d.11 ir and irs subordinate entities, if any. will 001 issue, tlX• txcmpl ob!t-.tioru (in<.!uding the A~CDI) in the amoonr of more than S10,000,000 duriog the current calcodar year. Leasee bmby dcsignalCS the A~ •• fflClll as, "qualified tlX-e,u:mpr obligation" widtin the meaning of Section 265(bXJ) of the Code and :,gr,cs that it and ;,, '"bvrdinote intitics, if any, will no1 designate morn rhan 510,000,000 of their obligations as "qualified ru-exanpr obligotions" dunng the cun ,nr .:.ilcodar year. Stctlnn l. Non-Arbltrll -CcnJOgdqps. 2.1. The Rental P:iymcnts ,,rue under the Financing Documents wi!l be made with monies retained in Lessee's general operating fund (or an account or SUbar.i.-ount therein). No sinkins, debt service. reserve or similar fund or account will be created or mainmincd for the payment of rhc Rena. I PaymcnlS due Wider the Financing Documents or pled&ed u security therefore. 2.2. There have been and will be issued no obligations by or on behalf oflcssee that would be d,cmed 10 be (i) issued or sold within fifteen (15) days before or after the date of issuance of the Financing Documcots. (ii) issued or sold pumianr to a commoo plan of fmancing with lhe Financing Documents and (iii) paid out of subsmotially the same soun:e of funds ,s, or deemed lo have subs1antially the same claim to be paid 0111 of subsw,tially the same source of funds as. the Finaocing Documcots. 2.3 . Lmee docs not and will DOI have OL hand any funds that arc or will be «stricrcd. SCJTCSl.led. legally r,quiscd or otherwise intended to be used. directly or indirectly, ~s a substitute , replacement or separate source of fina.nc 10g for the Equipment. 2.4 . No portion of the Principal Amoun1 is being used by L<'.;see to acquire investments which produce • yield marmally .m,),,:r tbao the yield realized by Lessor from Rental Payrocots received uod<.-r the Financing Documents. IIMSC-DOC.otl'?MIO, Y!l 14 2.5. The Principal Amount does oot exceed the ,o,ount nenuuy for the aovcmmental purpose for which the Fuw,cini; · · Docummts '""' -.eel into. Such llmds uo expected to be needed ond ll&lly expcnd,d for pa)'UICllt of the c-of ocqulrina, equipping GDd imtallin1 the EquipmcnL j 2.6. Lessee docs oot expect to COIIVcy, sublnsc or otlllrwisc di,po,c of the Equiplmn~ in whole or in pan. at• date which. is earlier than the final P•yment Date under the Financing Documents. Secdon J. DflbaDflDIDI or Fppcb; Bftmbgmrnml 19 t ...... 3.1. It is contcmpbted th.,t the cot~ Principal Amount will be used 10 pay the acquisition-ofEqu,pment to lbc vendors or manufacturers thcm>f, provided Iha~ if •pplicable, a portion of the principal amount may be paid to Lessee as reimburscrncot for acquisition cost paymcnis alrHdy made by it so long as the conditions set forth in Section 3.2 belo• uo aatisllcd. 3.2. Lessee shall 1101 request that it be r<imbuncd for Equipment ocquisition cost paymcnts already made by it unlm ••ch of lbc foll owing conditioos have been satisfied: (•) Lessee adopted a "'50lurion or othcrwi,c declared its official intent in accordance wilb Treuwy Regulation § I . 150-2 (the "Dcclararion of Official lntcn!'1, wherein Lessee C1CptCSICd iis ir>1cn1 to be mmbuncd from the procccda of a borrowing for all or a portion of the cost of the Equipmcn~ which expenditure was paid 10 the Vendor not =lier than sixty (60) days bcf0r< Lessee adopted the Declaration of0ffici•l ln1cn1; (b) The r<imburscmcnt being rcqucsi.11 will be made by• written allocation bcfont tlte Jai.r of cigbtccn (18) months after the expenditure was paid or cightccn (18) months after the item, of Equipment to which such payment r<laln were placed in service ; (c) The end« payment with respect to which r<imbunemcnt is being sought is a capital expenditure, being a cost of a type pMperly chargeable to a capitll account under gcnenl federal income tu principles ; and (d) Lcsscc will use any «imburscmcot paymeol for general opcr.1ting expenses and not in a manner which could be construed man artifice or device under Treasury Regularion § 1.148-10 10 avoid, in whole or in pan. arbitrage yield resaictions o. ubitrngc r,bate ~ts. Secdon 4. Use :and Investment of Funds; Temponarv Period. 4.1. Lcsscc bas incurted or will incur, within six months from the date of issuance of the Fiaancing Docw:,cnm, binding oblig•tions to pay an atDOUDI equal to at lcost five percent (5%) of the Principal Amount towanl the emu of the Equij.'!IICllt An oblig•tion is not binding if i, is subject to contingcnctcS within Lcsscc's control. The ordering and acceptance of the items of Equipment wiJ; orocced 1vith due diligence to the dote of final acceptance of the Equipment 4.2. An amount equal to or least eighty-five percent (85%) of the Principal Amount will be cxpcndcd ~, pay the cost of s :c Equipment by the end of the lh=-ycor period commencing on the date of this Certificate. No portion of the Prin• ij>ol Amount will be used to acquire invcsnnents that do not c:irry out the governmental purpose of the Fim.ncing Documents :md t!iat b:ive l substantially guaranteed yieldoffour(4) ycarsormor<. 4.3. (a) Lessee covcnanis :ind agr<cs that it will «bate an amount equal to exC' • .s eamiags on the Principal Amount to the Internal Revenue Service if«quircd by, and in accordance with, Section l48(f) of the Code, and make the annual determinations and maintain the r<eotds ~ by and othctwisc comply with the r<gulations applicable tbcr<to. (b) Lessee r<asonably expcctS to= the Equipment to be ac~ and placed in service within one (I) month of the dote of issuance of the Fwncing Documents. If the end« Principal Amount bas not been cxpcoded on the Equipment by i>e date that is the six•month anniveJSary of the issuance of the Financing Documents, Lessee will provide evidence to Lessor th.D.t th1; rcba1c amount has been ca1culatcd and paid to the Internal Revenue Service in accotdaocc with Section 148(f) of the Code. (c) Lessee hereby covcn:ints that (i) Lessee is a governmental unit with genml tax powcn; (. ·1 the Agreement is not a ''private octivirv bond" under Section 141 of the Code; (iii) at least ninety-five percent (95%) of the Princip.1 Asr ount is used for the go vc,nmental octivines of Lessee; and (iv) the •ggr<pte principal amount ofall tu-exempt obligations (including• e Agreement) issue_'.lat. hy Lessee and its subordinat< ~ 'lrirics, if any, during the current calendar year is not reasonably expected ti e:t cced 55.000,~ \cc otdmgly, the rebate requiml,cnts of Section l48(f) of the Col,c.,. tteoted as being me~ in lieu of the spending ·ceprion, set forth in 1-mgnph (b) above . ~.t .SCDOCOWlMIO Yll 15 Socdon5. No Private Ua; No Coo,wpcr Loap. • 5.1. Lessee will 1101 exceed the privaie use raaictiom set fonh in Section 141 otthe Code. Specillcally, Lessee will not • permit more than tm (10%) of the Principal Amount tn be used for a Privaie Businaa Usc (u dofn:d baein) if. in addition, the payment of more than ien pmem (10%) of the Principal Amount plus inierest camcd thereon is, directly or lddilecdy, sccured by(i) any immst in propeny used or tn be used for a Privaie Business Use or (ii) any intmst in paymam in respect of such property or derived liOln 111y payment in respect of pn,pcny or borrowcrl money used or tXl be taDd for a Privaie Business Use. ID llddidon, if both (A) more than five pcn:cnt (S%) of the Principal Amount is used u descnbcd above with respect tXl Private Business Usc ID<i (B) more than five pcn:cnt (5%) of the Principal Amount phu inierest camcd thereon is secured by Private Business Use pn,pcny or payments as described above, Ihm the cxccs.s over such five pcn:ent (S%) (the "Excess Privaie Use Pordon") will be used for a Private Business Use related to the 1ommncmal use of tho Equipmcat. Any such E.<ccss Private Use Ponion of the Principal Amount will not exceed the ponion of the Principal Amount used for the govcrmncntal use of the panicular project ro wbicb such E.<ccss Privaie Use Ponion is related. For purposes of this pangraph S.l, "Pri-BmiDas Use" IDOIDI use of bond proceeds or bond fmanced • propeny di=tly or indirectly in a trade or busincs, earned on by a natunl pmon or in any activity c.mc:d on by a pmon other than • natwal person, excluding, however, use by , stale or loc,l governmental unit •"'1 excluding use u a member of the gcnml public . S.2. No pan of the Principal Amount or inierest earned thereon will be used. directly or indirectly, to make or finance any loans to non•govemmcni-.,t entities or to any governmental :agencies other than Lessee . Sccdon 6. No federal Guarantee. 6.1. Payment of the principal or interest due under the Financing Documents is not directly or indirmly guorantccd. in whole or in part, by the United States or ,n agency or insllUl11Clltllity thereof. 6.2. No ponion of the Principal Amount or inierest earned thereon shall be (i) used in making loans the payment of principal or interat of which are ro be guaru,ieed. in whole or in pan, by the United States or Illy agency or instrumentality thereof, or (ii) invested, di=tly or indi=tly, in federally insured deposits or accounts if such investment would cause the financing under the Financing .Oc,cumcnt to be "federally guaranteed" within the =ing of Section 149(b) of the Code. Sccdon 7. Mlsctllaneous. 7.1. Lessee shall keep , complete and accunte record of all owncn or :wignccs of the Financing Documents in form and M-~tau.cc satisfactory to comply with the regisbiltion requimncnts of Section l49(a.) of the Code unJcss Lcs.sor or its assignee agrees to act as Lessee's agent for such pwposc. 7.2. Lessee shall maint1in complete :md occurate records establishing the expenditure of the Principal Amount and interest comings thereon for a period of five ycors after p,ymcnt in full under the Financing Documents. 7.3. To the best of the undcnigncd's knowledge, informotioa ,nd belief, the above expectations are re:ISOnable and then: arc no other facts, estimates or circumstances that would materially change the expectations~ herein. IN WITNESS WHEREOF, this Tax Agreement and Arl>itrage Ccrtificote bas bcca executed on behalf cf Lessee as of the _ day of ______ . ao-uc.ooc.OWJ:MO.Ylk CITY OF ENGLEWOOD, , Lessee By: N,mc: __________ _ Title : ___________ _ 16 llSOLtmON or GQYQNJNG BODY (Appaviaa Onlimnce am Raoluli1111 of City ID be aa.:bodJ 17 • l:r.:I IXBIIIITD lNCJJMNNCOC QR'l'DJCAD A..-rNo.01 Equipment Scbedule : or I do bmby certify dw I am Ille duly dectl:d or appoimd ml oc1in& City Clerk or Ille City or &ate,,,oocl. a political aabdivuion duly cqaaized ml oxistia& under Ille laws orlhe SIi.ie orCotollldo, 11111 I have CUl1Ddy orlhe RCcnls or IUCb entity, ml dial, u or Ille date ~ Ille indivmls IIIIIl<d below are the duly elected or appoin...S ollic,n or such mtil)' boldillg Ille ofllcea • lixtb ClppOlilo tbeir rap<aive llllllOI. I f'wlber certify 1hat (0 the sigDalwa set opposite their rap<aive mmes ml tillcs ue lheir true and awhentic silJl&llll'CS and (ii) IUCb officas have Ille IUlbority <11 beba1f or IUCb entity ID eDIOr inlD 1hat cenain ~ Lase Apoment dued • of Decembor 6, 2000 between such entity and Sutto .It Co. Incorporated. IlllJ; SIGNAJVRI! IN WITNESS WHEREOF, I have duly executed this certificate as ortbis _ day of ___ ~ By: _______ _ Name: _______ _ Title: _______ _ IQ-GC.DOC.~.nr. 18 Swro & Co. fncorporai.d 165 South Union Boulevard, Suite 450 ukewood, co 80228 [LETraRHEAD OF LESSEE'S COUNSEL] [DA TE OF LEASE] IXBIBITE Re : Master Lease Agmmeor dated u or December 6, 2000 (the "Agreement") by and between Suoo & Co. locoq,orated ("Lessor'1 and City of Englewood {"Les.iee") Ladies aod Geodemeo: We have acted as counsel to Lessee with respect to the Agmmeot descnbed above and various related mattm, and in this c,pacity have reviewed a duplicate original or certified copy thereor and Equipment Schedule No. 01 executed pumw,t thereto (together ,vith lbe AllfflllCll~ the "L..,.'1, The terms capitalized in this opinion but not deftned herein shall have the memiop wigned to them in the Lease. Bue:I upon die examination of these and such other docwncnu a.s we have deemed relevant, it is our opinion that: I. Les.iee is a political subdivision of lbe State of Color>do (the "State'1 within the meaning of Settion I0J(c) of the Internal Revenue Code of 1986, as 11,.euded, and i; duly orpnized, existing and operating under the Consti01tion and laws of lbe State . 2. Les.iee is authorized and bas the power under applic:able law to enter into the I.ease, and to carry out its obligations thereundt.r and the tr.uuactions contemplated thereby . J . Toe Leose has been duly authorized. executed and delivered by and on behalf of Lessee, and is a legal. valid and bindingA obligation ofte.see enforeeoble in occordance with its tttms, except as enfon:ernent thereof may be limited by banlcruptc y, insolvency anciW other similar laws affecting the enfurcement of creditors' rights genenlly and by geom! equitable principles. 4. The authoriz.ition and execution of the Lease and all other p:·oceedings of Lcsscc relating to the tr.msactions contemplated thereby have been performed in accordance with aU applicable open meeting , public m:ords, public bidding "°d all other laws, rules and regulations of the State . 5. Toe execution of the Lease and the ,ppropriation of moneys to pay the Rental Payments coming due therewxltr do not and will not result in the violation of any consti01tional, starutory OT other limitation relating to the manner, fonn or amount of indebtedness which may be incurred by Lessee. 6. There is no litigation, action, suit or procteding pending or before any cowt, administrative agency, arbitrator or govemm,nt:al body that cballengcs the 0111a.nization or existence of Lessee, lbe authority of Les.iee OT its officers OT its employees to enter into the Lease, the prop,, authorization and/or execution of the Lease or the documents contemplated thereby, the appropriation of moneys to make Renc,J Payment> under the Lease for the cunent Fiscal Year of Lessee, or the ability oft..... otherwise to perform it> obligatio,15 under the Lease and the tra.n.~crions coatcmplated thereby . To the best of our knowledge, no such litigation, action. suit or proceeding is th=tened. i . Toe Equ ipment is personal property, and when used by Lessee wiU not be or become fixllll<S under the laws of th,: Stare. 8. Reso lution No. ___ of the governing body of Les.iee was duly and validly adopted by sucb governing body on ____ ,, __ . and such resolution bas not been amended, modified, supplemented or repealed and remains in full forte and effect This opinion may be relied upon by the .iddressce hereof and its successors and assignees of interests in the LcJSt, but only with i<gard to matters specifically set fonh herein. Very DUiy youn, {type name and tide under signanlre) 19 • n n l)j DATE : _________ _ TO:---------- (lnswmce AlffllName&Address] [Phoae Number) Gentlemen: IXHIBITF-1 I\J City of Englewood bu enlffld 'nlD a Master Lease Agrmnmt dated u of December 6, 2000 wilb SUIIO & Co. Incorporuted. In accordance wi1h the Agreancn~ Lessee , ,rtifics that it bu instruct,d die imurmce qmt IIIIDOd above in issue: L All Risk Phys ical Damage lmuBnce oo lbc leas«! Equipment evidenced by a Cerdllcale orl.asaraa<e tad Loq Form Loss hyable Claase oamlDc Sutro & Co. I.Dcorporated and/or Its 1m1111 u Loss Payee. The Covmae RequiJed is S396,047.S0. b. Public Liability Insurance evidenced by a Certllleate of Imunnce aamla& Satro & Co. Iacorporated IJld/or Its unps u Addldoaal IDlllrtd. The followiag minimum covmge is required: Liability: Liability. Bodily Injury : Liability · Property Damage : PROPERTY : LOCATION: S 500,000.00 per persoo $1 ,000,000.00 aggn,pte $1 ,000,000.00 pn,peny damage liability Upon issuaace or the .. ......., oulllmd above, pleue mall a certUleale or lnnnDce to Sutro & Co. Incorporated, 165 South Union Boalennl, Suite 450, Labwood, CO 8Dm. Your courtesy in issuing and forwuding die requestod cenificaie at your earliest convenience will be appt?Ciated. Very truly youn, City of Englewood B~-----------~~---------- Daie: __________ _ IO-ISC.m)c.OWlMIO.r ..X 20 •'I I Il, ! IXHIBITF-2 QUESTIONNAIRE FOR. SELF-INSURANCE TO MASTER. LEASE AGR.EEMENT ID coaD<Clion with the Masier Lease Agreement (the "Agreement"), dmd as or the 61h day or December, 2000, mode 111d .-.<I iDlo by 111d between Suiro &: Co.111<:orpcnled, as l.asor (the "lessor"), and the Lessee identilled I'd•"'• as Lmee (die "Leuee"), Lessee WIIIIDtS and rq,resenn to lessor the following information. The terms capiwized bert"1 but not deflll<d beRin sbaJJ have tho mtauinp mipd to them in the Agreement. I . Propmy IMUTJ11ct . L Lessee is self-insur<d for damage or destruc~on to the Equipma,L YES NO (ciltle one) Ir yes, the dollar amouot limit for property damage to the Equipma,t under the Lessee's self-insunnct program is $ __ . b. The ltsste maintains an ummella insurance policy for claims in excess of Lessee's self-insurance limits for property damage to the Equipment as indicated above. YES NO (ciltle ooe) If yes, the umbrella policy provides coverage for all risk property damage . YES NO (ciltle one) Ir yes, the dollar limit for property damage to the Equipment under such umbrella policy is$ ___ . 7.. luJbility fnsu=•· a. Lessee is self-insured for liability for injury or deoth or any person or damage or loss or property arisin& out of or relating to the condition or operation of the EquipmenL YES NO (ciltle one) If yes, the dollar limit for such liability claims under the 1.essco's self-insunnce program is$ ___ . b. The Lessee maintains an umbrella insurance policy for claims in excess of lessee 's self-insurance limits ror liabilil)I including injury or death of persons or damage 10 property as indicated above. YES NO (ciltle one) If yes, the umbrella policy provides coverage for liabilities for injury and death to persons as wtll as damage or loss of property arising out of or re u ting to the condition or operation or the EquipmenL YES NO (ciltle one) If yes, the dollar amount of the umbrella policy's limits for sucb liability covmgc is S ___ . JA. Self Insurance Fund. a. Lessee maintains a self-insurance fund. YES NO (cin:le one) Ir yes, please comp le"' the following: Monies in the self-insurance fund are subject to :umual :ippropriation. YES NO (cir<le one) • The tow amount mainwned in the selr-inSUIOlll:e fund to cover Lessee's self-insurance liabilities is S ___ . IQ,GC.DIX.OWlMIO,YJl 21 b. Amouml paid fioill 11m C-'1adf...-llad III lllbject to limllaliam a eocb ~ YES NO (circle oat) If yes, Ibo dolllr -of limit per claim is s ___ . 3B. No s,Jf fluvtv1ta Fund. 2. Ifl..caee doel aotllllimlill uolf-mllDllCI ftllld, plllse coa,plote Ibo lbllowiDg: Lcuee obraml llmds ID pay claiml lbr wbich k bu Mlf-imund fiom Ille follawiq IIOWtCI: b. The limitatioas on 11m IIIIIMmb payable lbr claims fiom Ibo above 1<....,_. .. u follows: L The following OD!ity or officer bu llllllority t.> 111diariza payment for claim: b. In the emu tho entity or oflicor lllfflCd in die prior re,pomo denies payment of I claim. does th• claimant have recouno ID IIDOlbcr administtalivo oflicor, l&OIIC)I or Ibo courts? YES NO (circle ODO) If yes, to wbcm does 11m elaimlllt b.vo recounc? S. Cmifirotts offnsuroneo. Anached hereto are copies of eoniliatos ofinsunnco with n:spoet ID policies maintained by Lcuee. • IN WITNESS WHEREOF, Lcssoo bas caused thi, Questionnaire ID be executed as a supplement to die ropmomatiom of Lessee in the Agrmnont by ils duly authorm:d officer. Attacbm:nt ICJ,,IIC.DOC.:~Y"Jt 22 CltyofEnpwood, l.,ssoo By:. _____________ _ Name: Title: ~k: _____________ _ Telephone: 303-762-2300 FIC5imile: 303-789-!12S l·N1-c:_con1_,_oc1_-c_,_•co_Ne_-~I -k-Equ-=lpmon=,,.,l===::---------t---,=-l·-.c-'LI"i•,ls -·--Patel ·~--~-1--;;a1 ProductDHcrloOon Qlv Parhm ot""ac,..,oun=1I--.T"'o1a'"1,---t--...,_,,'-"'~,-~ude-• Date Chock • ~~7208VXRl300 7206VXR Btmll-NPE.P and IO Comollor-FE 4 17000."00""1-~35='11-t--,-44"'1.2m= .. 00=l-~44~200='.00=-l---,44'"]oo='.00'7ff~ eiiwf JiiMi PWR-7200 CNIC07200K:.Paww111-1__.. ,t 35" PVVR-7200'2 01co7200DulllC-111-r--. 2t!JllN .. 300000 35% 780000 7AIY'IOO 780000 :.tns:iN ai~ 3ii5i"" -Cud 110V 8 35'11 -:--i- c;;;:;"'=~--l~,;;;;..1081P : 300000 ~: ,,moo 1~ _ 1.aoo~ J73:t5-IN Blt5IOO 380!58 040M a.conoouoPCMC&Aflllh1--IIOMB:..-, .. «x>OO 35% 104000 1,(MQOO •~ro 37J:!5.IN 8115'00 3105511 !~ii~~~t~1~2~BM~B~⇒128 Mb MtmOt' for NPE-lOOINPE-225/NPE-175 In 7200 Sertn 4 1 800 00 35% 4,880 00 4:iiooo" -4,iioD.1 Y:i:J!I~-811s,xt 380551 1 :A-12ct.irE -Poft~ 4 3,80000 35% 9,99JOO 9,88000 8,88000 37335-IN 8115100 Jm55I ~A -n ----wllhnosU..~emot•Sln J 1t,001Joo·7~~!~ 21 .,sooo =--2,.,so~_37~~--"iii5'X>_~ ~~\135-MT ,:V350TEC(medon ~ a,:: ~: s:~-3.~~ s:r~ ~~~m--tl~ = f>S..2 1"' wlthT30SUI-Cort11e ---i--r-1eiif001-. 35% 234<Xf 00 23,40000 2340000 37335-IN -8115Kl0 380551 i isif.31.M.~r Os Robata Edem.: 33.e Modetn • • JS-At • • - ,i,cs.~;YN -Port Caiblt Kl 4 100.00 35% i----,-~-QQ ___ ~~.:X 1 --250.00 37335-IN eifMio 3ios5i :~~-Oual1CW100ElhlmetRouter\lllh2WtcSlota&1_N_MSki a 31»5.00 35% 160!M.OO 1ll.~~i --,sO!M.00 3 7335-IN "ii iS.W -Jisi l~iDJ.lUMO ~ Mc:~ ~~M Ft1C1ory U tor._ a.co 2900Blf'-: t 900.00 :: 9,880.00 g 580.oo 9,880.00 37335-IN ~ 3ii5e MEM2900-8U16FS• 41o19MBANh U,__bCllco2900s.lll 8 700.00 35% 36'0.00 3640.00 3640.00 37335-IN 8115100 310e51 USR-33.eEXT Mo i1m a 35% S29C-12.0.TT I 35% ,i CA8-V3511T Nt 8 100.00 35% 520.00 520.00 520.00 37335-IN -=-~7 -3im51 ~~ P1X515Urncrlcted8oftwwec.d8'.ndle -~~-+--,~2".::~::::-1--i:ai:r-1--~r"::~::a+--'i':000.;eoo~.'ic:::;;-f---.'~'==•"": ~~~~~ · t;f:: : = CON-SNT•7208 !dKHEl>SvcCllco7208..,..,AOIMrSnwnt 4 3,0IXUlO 0% 12000.00 12,000.00 37~1t· I o.·.~ .-;., ; 3l!KJ!5I CON-SNT-f'X-515UA !x5xNBOSvcPIX5150.U.Urnltl1cted•BmlrtNtt 1 2,500.00 0% 2,500.00 2,500.00 • 373 ~-...f , ,-8:-,ti ·• ~ CON-SNT-20.X 815xHEl>SvcCllco21XXRouler-Snwtnle a 392.00 0% 3,138.00 3,136.00 ii ID~1i Q:t'!:'00 380558 lnatallatkln NEClnltalltion 1 15,000.00 O'A, 15000.00 7,500.00 ~:t1-•8.it5IOO°~ TOTAL 198,847 .50 191 347.50 1 I.AH 37335-IN 811Ml0 ~ 35"8XLE E-15 4,lllh.00 35'11 48,101 .25 ~.101.25 --~~~ ~ Calalyll3524XLE E-7 2,119!1.00 35'11 ~3 ,627 .25 __ g627.25 13,827 .25 77335-IN ~-S,00 360558 Calalyll3512XLE e-. • 2,495.00 35'11 9,730.50 9 730.50 973050 37335-IN 8/15")() 360558 C JSlBGXL e-. 2 II 35'11 6,493.50 6 493.50 6,493.50 373l5-IN 8;;5'00 -WS-C850!I Calalyll6509Cl,a,-1 35'11 6,498.75 6,498.75 6,498.75 37335-IN 8/15")() -WS-CAC-1'JIXJN ~ tl000 13DIJW N;; POWM Suppfy 1 35'11 2,598 .75 2,598 .75 2,596.75 3733~1N 8/15")() -WS-CAC>1'JIXJNl2 :-80008econcll 1DJN AC Po'#wMt-1 35'11 2 598 .75 2,598.75 2 598.75 37335-IN 8/15"l0 3'105511 SFCSK-SUP-5.3.3 ..-eooos~A1ati1,,_, R ... 5.3<3> 1 35'11 -~ CAB-AC PawefCord,11(11/ 2 35'11 SC610S0-12.0 .7XE ctsco~eooos ...J."loFlalhl-·IP/IPX 1 2,000.00 35'11 1 J00.00 1 300.00 1,300.00 37335-IN 8/15")() -WS.XSK..SUP1A-MSFC 8000S 2GE ... MSFC I PFC 1 29,995.00 35'11 19,496.75 I !9:49675 19,496.75 37335-IN 8/15"l0 360558 WS·X6248-RJ-45 ~-1 -5 12,995.00 35'11 42 ,233.75 42 ,233.75 37335-IN :~~ I~ WS-X8408-G8tc • .,.._t8XI08-PortG1gab11Ethemet~ Raa.GBtet 1 ~.00 35'11 6496.75 ~~~ 373~ 360558 Ws-05484 1CXX>BASE-SX "Shoft W ~oaic 22 500.00 35'11 7,150.00 7,150.00 t--°J"73J5.IN 8/15"l0 =-WS -X3500-XL "-~-s GBIC and !50cm ,_ 12 250 .00 35'11 1,950.00 1950.00 1950.00 37335-IN 8/15")() CON-SNT-WS--C3S48 !dxNBO Svc, C:alvll 3548 XL 15 475.00 "" 7,125.00 7,125.00 7125.00 37335-IN 8/15")() 360558 -CON-SNT-WS-C3524 Bx5xNBO Svc WS-C35Z,4 1 375 .00 0'11 2625.oo· 2 625.00 37335-IN 8/15"l0 360558 ___ ....,.. -DIIV.351U 1508.411 3,-IN l/1!WO lll.00 3m.lN l/31AIO 32.01 -l/31AJO 1IIOI.SJ p 3; 711.0D •• ..2of2 Sutro & Co. i.corponted ADDENDUM TO EQUIPMENT SCHEDULE NO. 01 TO MASTER LEASE AGREEMENT (LEASE NO. 01) RELATING TO SELF-INSURANCE THIS ADDENDUM is made u of this 6th day ofllecembcr, 2000 between Sutto & Co. lDcocpor:ited (the "Lessor") and City of Englewood (the "Lessee"). A. Lessor and Lessee have ena:rol into a Masler LellS< Agreement dated aa of the 6h day ofDecember, 2000 (the "Agreement"). B. Lessee desires to leaae equipment described in E~uipment Schedule No. 01 II> the Agreern<DI (the "Equipment") and Lessee bas requested that Lessor lease such Equ ipment to Lessee. C. With respect to Equipment Schedule No . 01, Lessee baa requested that Lessor permit it 10 provide self-insu -.nee for liability claims and propeny damage. D. Lessor is wil ling II> grant L<ssee '< request subject 10 the following tmru and conditions . NOW, lllEREFORE, in coasideBtion of the premises :1nd mutual covenants and agreements cooctined herein and in the Agrmnent, it is hereby agreed as foll ows: I. Toe terms C3Pit1lized in this Addendwn but DOI defined herein shall have the me:mings assigned 10 them in the Agreement . 1. Lessee hereby represents and warrants that all representations and warranties conllined in the Ag,mn<nt are aue and corTCC I as of the dale hereof 11Dd that neither a Non•Appropriation nor arty Event of Default or event which. with tbt" 'lassage of time or giving • oo>;:: o;· both, would constinue an Event of Def.wit has OCCUITed UDder the AgrmnrnL J, All other a:mu and conditions of the Agreement oat specifically amended by this Add,ndum sb,ll remain in full force and affect and are hereby ratified and confirmed by Lessee. 4. Lessee rcprcst."Uts ilJ\rl wmants tha t all reprcsc:ntations and wan-antics contained in the Questionnaire for Self• Insurance to Master Lease Agreement (the "Questionnaire") are aue and corteet as of the date hereof. 5. Lessor acknowledges receipt of the QuestioM:iirc ,md. in reliance upon the infonnation provided therein, agrees that Lessee may satisfy the requirements of Sections 7.1 through 7.3 of the AgreelllCllt with n,spect 10 Equipment Schedule No. 01 through self- insurancc . 6. By written notice to Lesscc1 Lessor may revoke its agreement relative to Equipment Schedule No. 0 I to accept self-insurance in lieu of the inSUr.1!1ce required by Section 7.1 through 7.3 of the Asreement at any rime during the n,lated Lease Tenn when L=or deems itself insecure with respect to such self-insurance. Within thirty (JO) days of receipt of notice from Lessor, L<ssee agms 10 obtain insurance in comp ;;,'IDCe with Secri,,n 7.1, 7.2 and 7.3 of the AgifflllClt and provide evidence thereof II> Lessor. IN WITNESS WB!:i<£OF, the panies by their ,luly authorized otlicrn have executed this Addeoduro as of the date and year first above written. City o(En1Iewood, Lessee By: ________ _ ~:"--------- D11e: ________ _ 23 SuL.., & Co. lncorpo111ted, Less., By: Name : _____________ _ Title: Date: _____________ _ OCT Ill '1111 11: Z'7R'1 KR DEN 3113 292 7799 Sutr'O & Co. lncoiponted KU:TAK .. OCK LLP e1.1rr1 aeoo 717 sav■NTHNTM STll ■.-r D ■NY■A. COLOIIIADO IOlt■,flH HS•■•7•1.00 ,A,C81MII.I 101·111•7711 -......... ,..11, •• "' December 6, 2000 165 South Union Boulevard, Suite 450 Lakewood, CO 80228 ATLANTA '~ _... .... ,n ....... UTTU~ .. ............. ,. •1U.AN•..-••n ....... -· .. ........ ....,.,.... .. ...... ..,,. .. Re : ~ Lease Agreement, Lease No. 01 dated u of December 6, 2000 (Ille "Agreement") by and between Sutro &: Co . lncoiporatec! {"Lcaor'1 and City of Englewood, Colorado (''Lesscc:'1 Ladies and Gentlemen: We hav , acted as counsel to Lessee with respect to the Agreement and various relalcd matten, and in mil capacity have reviewed a dup!iQ!c original ar certified copy tbcnof and Equipment Sch• JUie No. 01 executed pursuant thereto (togedter with the Agrceruonl, Ille "Leue"). The terms capitalized in this opinion but not defined haem shall have the meanings assignod to them in the Lease. Bued upon the examination of these and such other documents as we have deemed relevant, it is our opinion that: I. Lessee is a political subdivision of the State of Colorado (the "State'') within the mcming of Section 103(c) of the In1emal Revenue Code of 1986, as amended, and is duly organized, existing and operating undct ihe Constitution and laws of the State . 2. Lessee is authorized and bas the power undct applicable law to cntct into the Lease, and to carry out its obligations thereunder and the 1I3!1SaCtions contemplated thereby. 3. The Lease bas been duly authorizerl, executed and delivered by and on behalf of Lessee, and is a legal, valid and binding obligation of Leuce enforceable in a,;cordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and by general equitable principles . 4. The authorization and execution of the Lease and all other procecdinp of th e Leuee relating to the transactions contemplated thereby have been peri'onned in accordance with all applicable open meeting, public records, public bidding and all othct laws, rules and regulations of the State. 5. The execution of the Lease and the appropriation of moneys to pay the Rental Payments coming due thereunder do not and will not result in the violation of any constitutional, stallllory or other limitation relating to the manner, fonn or amount of indebtedness which may be incurred by Le-:see. 02-56&71 .0I KUTAK i.ocK LLF' Suuo ,t Co . lDcorporated Decmber 6, 2000 Paae2 u 6. There .is no litigation, action, suit or proceeding pending or before any court. ldmlnillrarive agency, arbittator or governmental body thal challenges the organization or exis1ellCe of Lenee, the authority of Lessee or illl officers or its employees to onter into the Lease, the proper authorizltion and/or ex~on of the · Lease or lbe documents contanplated the-. <:by, the appropriation of moneys to make Rental Paymenrs under the Lcuc fur the cumnt Fiscal Y w of Leasee, or the ability of Lr.ssce olherwise to pe:rfonn illl obligatiolU under tb ~ Lcue and the ll'IIISacliona contemplate.. :hereby . To the best of our knowledge , no such li,igallor~ action, INit or proceeding is threatcocd . 7. The Equipment is personal property, and when used by Lesi,ee will not be or become fixtures Ullder the laws of the State. 8. Ordinance No . _, Series of 2000 of the governing body of Lessee was duly and validl y adopted by such governing body on second and final reading on November ·_, 2000, and such ordinance has not been amc:ndcd, modified, supplemented or rq,ealed and remaim in filll force and ell'ect. Thia opinion may be relied upon by the addressee hereof and its succeuo111 and assignee& of interests in the Lea.ie, but only with regard to mat11!n specifically act foI1h herein. Further, this opinion is given as of the date hereof and we aaume no obli1ation to update, revise or supplement this opinion to reflect any fal:ts or circumstances that ~: ·,·, hereafter come to our attc:ntion or any changes in law that may hereafter 0<:cur. Very truly yours , •