HomeMy WebLinkAbout2013/10/01 Item 10 ��p �� CITY COUNCIL
. � AGENDA STATEMENT
��� �v�i
�� '�`CHULA VISTA
October 1, 2013, Item �d
ITED'I TITLE: RESOLliTION OF THE CITY COtTNCIL OF THE CIT1'
OF CHULA VISTA AUTHORIZING THE CITY OF CHULA
VISTA TO ENTER INTO A 7-l'EAR LEASE PtiRCHASE
AGREEI2ENT «'ITH OSHKOSH CAPITAL FOR THE
ACQUISITION OF A PIERCE ARRO�i' XT TRIPLE
COA4BI\TATION PUnZPER/FIRE ENGINE
SUBDIITTED Bl': FIRE CffiEF ���
RE�'IE�VED Bl':
CITY A'I�\AGER�,�f�,5•
�fhTHS VOTE: PES ❑ NO �
SUi��1�RY
The Chula Vista Fire Department delivers Fire and Emergency n4edical Services to the residents,
visitors, and emplo��ees every da��. Our primaz�� emereency response vehicle is a Pierce Triple
Combination PumperlFire Engine. With the suspension of funding for the vehicle replacement
fund. the historical funding source utilized for fue appazatus replacement is no longer available.
The Fire Department has identified a Lease /Purchase proeram that provides a conduit for a Fire
Apparatus purchase while minimizine the immediate fiscal impact. The Fire Department is
requesting authorization to enter into a 7-ti�eaz lease purchase aereement with Oshkosh Capital
for the acquisition of a Pierce Triple Combination Pumper/Fire En2ine in order to replace an
existine Pumper that is beyond its useful performance life.
ENVIRONMENTAL REVIEW
The En��ironmental Re��iew Coordinator has reviewed the proposed acti�ity for compliance with
the California Environmental Quality Act [CEQAJ and has determined that the activirv is not a
"Project ' as defined under Section 1�378 of the State CEQA Guidelines because it does not
involve a ph��sical chanee to the en��ironmenr; therefore, pursuant to Section 1�060[c][3] oFthe
State CEQA Guidelines the activin is not subject to CEQA. Thus, no environmental review is
necessan�.
RECOn��ENDATION
Council adopt the resolution.
BO ARDS/COA1n1ISSION REC01�I1VIENDATION
I�'ot Applicable.
10-1
October 1, 2013,Item ��
Page 2 of 3
DISCUSSION
The Fire Department responds to Fire and Emergency Medical incidents both within and out of
the City of Chula Vista twenty-four hours a day 365 days a year. Our primary response vehicle is
a Pierce Triple Combination Pumper/Fire Engine of which we staff eight daily. We also staff two
Pierce 100 foot Aerial Ladder Trucks, a Pierce Type lIl Heavy Rescue, one International
Navistaz Brush Eneine and tu�o Chevrolet Suburban Command Vehicles. Our reserve fleet
consists of five Seaeraves Open Cab Style Engines and one Smeal ]00 foot Aerial Ladder Truck.
National Fire Protection Association (NFPA) Standard 1901 is the regulation that governs
Automotive Fire Apparatus. I�TFPA 1901 requires fire apparatus be placed in front line (primary)
response status for 1� years and then in reserve status (back-up) far 10 years for a total of 25
years of service. We currently have one front line Pierce Triple Combination Pumper/Fire
Engine that has been in service for 14 Y2 years and two Seagraves Reserve Pumpers that have
been in service for 26 and 28 years respectively. The front line apparatus currently in service at
fire station 5 is the busiest engine in the city. This apparatus is scheduled to be placed in reserve
status this year and the two reserve pumpers still in service today should have been placed
permanently out of service per the NFPA 1901 Standard. With no current citywide vehicle
replacement plan in place, the Fire Department has researched and identified a plan that will
provide for the purchase of this mission critical piece of equipment while minimizing the fiscal
impact to the city. This new fire appazatus will help to increase the reliabiliry of our current fleet
(less downtime for mechanical issues) provides a safer response vehicle than our exiting fleet
(addition of air bags, and safety striping), and is more fuel efficient.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by tbis action and has determined that it is not site
specific and consequently the 500-foot rule found in California Code of Regulations section
18704.2(a)(1) is not applicable to this decision.
CURRENT FISCAL IMPACT
The total cost to purchase the Fire Engine is $578,223.59. The Fire Department is
recommending acquiring this equipment via a 7-year lease purchase agreement that will result in
annual payments in the amount of$91,983.22. The total amount paid for this Fire Engine will be �
$643,882.54 through the 7-year lease purchase option. There will be no fiscal impact in fiscal
year 20li-2014 as no funds are due until one year afrer the agreement is entered into.
ONGOING FISCAL IMPACT
During Fiscal Year 2012-].i, the City Council approved a transfer from the Fire Department to
the Equipment Lease Fund of $100,000 for the year one ]ease costs of this equipment. Lease
costs for years two through seven will be added to the budget as part of the normal budget
process. The table below summarizes the projected fiscal impact by fiscal year.
10-2
October 1, 2013, Item ��
Page 3 of 3
�:;Descriptio`n',��=�=FY14 ;=q FY15�—>F.Y16^=?�FY17. FY18 FY19,r``., FY20–'-FY11�,�Total,'=?
Expenditures $- $ 91,983 $ 91,983 $91,983 $91,983 $91,983 $91,963 $91,983 $643,863
IdentifiedResaurces $- $ 91,983 $ 8,D17 $ - $ - $ - $ - $ - $100,000
Net Fiscal Impad $- $ 183,966 $ lOD,ODO $91,983 $91,983 $91,933 $91,983 $91,983 $543,863
As pre��iously reported, the General Fund continues to reflect a deficit durine the forecast period.
The forecast N�ll be updated once fiscal vear 2012-13 has been dosed; updated revenue
information is recei��ed, and/or neeotiations �vith all bareaining groups aze finalized. The
forecast indicates that the City should proceed ���ith caution in assumine ne�i� espenditures as the
Cit��'s economic condition remains economicall�� fraeile; ho�ti�ever, better than anticipated
economic ero��th or unanticipated revenues may be sufficient to offset the projected deficit.
ATTACH?�4ENTS
Lease agreement
Prepared by: Jrm Garcia, Depup�Fire Chiej
10-3
RESOLUTION NO. 2013-
RESOLUTION OF THE CITY COLTNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY OF CHULA VISTA
TO ENTER II�TTO A 7-YEAR LrAS� PURCHASE
AGREEMENT WITH OSHKOSH CAPITAL FOR THE
ACQUISITION OF A PtERCE ARROW XT TRIPLE
COMBINATION PUMPER/FIRE ENGIN�
WHEREAS, The Fire Department delivers Fire and Emergency Medical Services to the
residents, visitors; and employees every day and our primary emergency response vehicle is a
Pierce Triple Combination Pumper/Fire Engine; and
WHEREAS, the Fire Department will continue to meet the NFPA standards and increase
the reliabiliry of our current fleet with ]ess downtime Por mechanical issues and provide a safer
response vehicle than our e�iting fleet; and
WHEREAS, the Fire Department is recommending to enter into a 7-year lease purchase
agreement with Oshkosh Capital for the acquisition of a Pierce Triple Combination Pumper/Fire
Engine in order to replace an existing Pumper that is beyond its useful performance life; and
WHEREAS; the total cost to purchase the Fire Engine is $578,223.59, which will result in
annual payments in the amount of$91,983.22. The total amount paid for this Fire Engine ��11 be
$643,882.54 through the 7-year lease purchase option; and
� NOW, THEREFORE, B� IT RESOLVED that the City Council of the City of Chula Vista
does hereby authorize the Cit}� of Chula Vista to enter into a 7-year lease purchase agreer.ient
with OshKosh Capital for the acquisition of a Pierce Arrow XT Triple Combination Pumper/Fire
Engine.
Presented by Approved as to form by
C�---C_ � .
David W. Hanneman Glen R. Googins
Fire Chief City Attorney
J:\Attorne}'\FINAL RESOS AND ORDINANCES�2013U0 O1 13\Reso - Fire Engine.docx
9/16/2013 12:19 PM �
10-4
THE ATTACHED AGREEMENT HAS BEEN REVIEVVED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AI`TD «TILL BE
FORMA.LLY SIG�IED UPON APPROVAL BY
THE CITY COLJNCIL
���� G�z�
Glen R. Goo�ins
City Attorney
Dated: � ' � " / �
MASTER LEASE PURCHASE AGREEMENT
BETWEEN
THE CITY OF CHULA VISTA A\TD
OSKOSH CAPITAL
10-5
fNaster Lease-Purchzse Agreement
6=twe=n
CITI' Or CHULP.VISTA AND OSHK^vSH C.4PITHL
�OCUMENTINDEX
� Master Leas=-Purch2se Agre2men� — Sign and provide title on tne last page
Q Lease Scnedule v✓ith Schedule A-1 — Sign and title
Q Vehicle Schedule Addendum —Sign and iitle
� Incumb=ncy Cerfificate and Resolution — List your authorized signor(s) and titie(s); have
secr=tary or appropriat2 trustee attest io th= inrorrnation and signature(s) provideo by
signing and printing his/her name, title and date. The person who vafidates the
signat�res should not sign the fease documents. The resoluiion must reflect the
titie(s) ot the individual(s) who have authorization to sign the documents.
❑ Opinion ot Counsel Letter — Enclosed is a iemplat2. Please ask your attorney to prepare
on his/her ietterhead, and include alI of the items in the iemplate.
Q Insurance Request Form — Fill in your insur=r's information and sign. Please coniact
your insurer, prior to delivery, to ob'tain a certificate of insuran�e. Please enclose the
certificate with the signed docum=ntation or have the insurer fax the certificate directly to
me.
Q Three Party Agreement — Sign and titie.
Q Delivery & Acceptance C=rtiiicate— At point o4 delivery, fill out this iorm anci Faz it to
me. ?fease return the originai via US Postai Service.
� IRS rORM 803S-G — Sign, date; and title
❑ Ninut=s of Governing Body (approving th� purchase & finance of equipment) — Piease
retum a copy witn the documenis.
� Sales Confracf o; Purchase drder - p(ease provide a copy of the Sales Confracf
enier into with Pierce Manufacturing or a cop�� of the Purchase Order issued to
Pierce Manufacfuring lnc.
I S.i E. Eroud Si., B4-E230-Ui-7 t Gidunzbus, Olaio 4321�
pl�nne 800-b'20-9041 4 faz b'00-67&-0602
10-6
ses
MASTER LEASE - PURCFiASE AGRE�M�NT
Ca'tg: as o�S=�iemb>r 25. 2D i 3
IieiS M25L_i �2252.�UiC�?Sc A4f?°iTl°�. i0.�°iIt°; Wii(1 311 80�°;iCc, fl4_.� and acacnm=n:s
ilci2tC, 25 L'7° 53filc iT�3V rrom 'ti�� to arr�=_ o- amen�a:, modin=d or SJ�DI?fii3fl!?� �°AR25L°i L°Zr.°� 15
made anc �ni=_r� by and benv�an O�hkosn Capi;al {"Lzsso') and G�= Less=a idan5��=d b=_for.
("Lessy").
L�SS=_: Civ o�Chula V>;a
i. LEASc OF EQUIPMENT. Su'ni=��tc tne i=_���s and c;onditions o�tnis M2ster !zese, L=ssor aqre2s io
IE252 i0 �°55O°, Hf1� L°55°E BOi2°5 CO �°ZSE T�Ofil L2SSOf, 81I EC,,UID61�iti ]?SCiID?� lit c3Cfi S:.Il00ll��
sicn_d trorr� 5me t:� ame by Less=e an� L=_ss�r.
2. CERTAIN DErINIT10NS. All 'terms d=sined in tne Le2se are =_aualty appiicabl= io botn '2na sinoular
and olural fom o� such t>rtns. (a) 'S:neduf_' means �a�h L>_ase S�n=dule sian=d and d=livered by
�°552� cild Cessar, toaetner Wilii all aod=ndc, fij@�, a�:a�nmen-s, a:rti5:a"t�s 30� exnioic tn=reie, as
u'1? 53iTIE�.li�8)'T(OfT1 ii�Tc ID �IfO_ DE amend�, RIO�IiI?� �i Sl1PD�°�Ti0flt8!�. �°SS°5 and L=,.ai0i Z�f?3�Lt18i -
E?.Cfl JG'IB7UI° �2XC°;7: 25 expressiy provid=� lii said S�nedule) inc:,ncates bq r=far�n:e all of YhE i°fT15 �
and condi`ions o� tn= Mas'ter Lazse. (o) °Lease° maans eacn Scneiui=_ anc ��is Ivlasi=r L=ase =_s
inc��o2:=_d ifitO Sc'IC� JCi12af1�° �C� °GQlllvill°Oi' ilcZf`.5 the prop>_ry 7°SCfIJ°.�i f0 °_BCii JCf18�L��E,
ID�?�.'1°i Wit(1 2�� 2i:cCfi�T°fi�.5, aodruons, ac�_ssians, �ars, f°�2Ii5, imarov_m=rts, rep;ac=_m=nis BfIC
suCs:itu�ons tn=re'to. (d) °Lian' m°_2ns any secunty intaresi li=_n, moricao=_, ol�dae, °ncumb�ance,
}�OQfT13f14 ex=cuiior�, aicacnmen:, wa7ani, wri:, I°��, Ou'1?f IL1�IG8� �fOC_55 O( C�31R1 Oi any naiure
wha:soever bv or o�anv oerson.
3. LEASc TERM. Tne t°f(Tl Oi tfl°_ �8652 Of t71� =cuiom=ni dsc�ioed in ��cn L�HSc �`�823° I°ffii'j
comman�es on fn° iLSi(JBIE 8�}' Oi SUCii EOLIDfiI°!li IS accaot=_c by L�se= pursuant t0 $?�IlOft J tl?f°Oi
and, unl=_ss earlier tarminated as exoressly provid=_d in tnz Lzase, continues unul L=ssee's czym=_nf ane
�rorranc= in iull o�all o� Lesse:'s oblications und=r t�=_ L>ase.
4. RENT PAYMENTS.
4.1 For ea�n Lezsz, Lessee agre=s io cay to L==sor�he rzni xymen!s If�u'1° 2f10!If1:5 and ai fti8
� il�Tl°5 6� s°i for�n in �12..SCi1°�7U�° n-i 3iiHCT1°C t0 fI19 S;il°�LJ�? �°i(?fli Paym>ns°). A po,iion Oi °3�Jl1
�=_n: ?ayment i> paid as znd rpr_sents ti�= paymani o� ini=r� as sa: iortn in th_ Scnedufa A-1. r=ni
?ayments will t� payabl=_ ior Lh=_ Lea;=_ Tem in U.S. dolizrs, wftnoui noiic= or demand ai fhe ofiice ot
Lessor(or.such ou�er place as Lasor may desianat�fron tim=_ to iim>_in writing).
C,� �i �PSSOi r��eives any �8�7°77i ''rom Les>ee 2II°f t'it_ �7UE daie, L°__S8° Sii3II ,G3\' L°SSOi Ofi
d=mand as 2 IaiB C�8f�2 tIV? �i C?flf (J%� Oi Sl1Ch OW_F�Uc OTJUl1!, II�tlt_�, hOW?V��, FD }71= ti�2XfITIUtTi
� amoun[aliow=d 'oy law.
4."s =XCE°T �S S?=��I=1CA!LY �ROVIDED IN S=�TIO� e H=R=O= OP. IN AIv'Y VJRf i i=�
�ODI=1C.-.TION TO THc Lt?,S= SIGN=D BY LE550�, TH= 03LIG�TION TO :'^,Y Rc��T ?nYM=NTS
UN�cR :ACH L�.=.Sc SHALL 3= H3SOLUT� AND IiNCONQ17iON.4L IN ALL �V�NTS ,�,ND SHALL
NOT BE SUBJ�CT TO ANY 5�T0�=, D�F_NSE, COUNTERCLAIM, A3,AT�M�NT OP, P.ECOUPtv1=N t
FOR ANY R=F.SO�'W�ATSO=V=R.
�. DELNERY; ACC�PTANCE; FUNDING CONDITIONS.
,^-.i �°SSB° 'aR3�� aTd1O° iOf f71E ;2nsoor'L=Fion, d=livery anc ins;allafion of all cauiomen: 'to ine
lo�iion soecin=c in :ie Scned�ul=_ (°Loca6on") by Equiprn=_nt supp(i>r (°Supoli=_r,") s=_I=_ct..; by L�ss�=.
�°_SS?c Snall oav 3{� 0.^.Si> i°fah_d tn=rto uniess L2550f Otf19lWIS°_ 2Of?:5 ;� GcY 5�1Gf1 :.^55 25 SicFed in
i�E JC�?�LI��. . _ . .
�.2 �@S50E 5�31I 2CC�Di =OUiDRl2fit 25 SOOfI z5 fi iiZS bBBii G°�N?f?�. ZiiO t5 ooaraiio;aL L°_558E
SiiO�� °Vf�°f1C° RS a�,M.pcance Oi 2fiV CQL'IDin°fli Dj' sicning znd '�°IN?flily i0 �0550f i'Ic c,DPIICc�D�E
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ECS
Sch_dute. I� L>_ss>=_ signs and oziivers z Sch=dule and i� all Funding Conditions 'r�ave been satisfl=d in
iull, tnen Lzssor will pay or cause to be paid the costs of such Equipment as staied in the Schedule
("Furchese Price"j ie the applicable Suopfi>r.
5.5 Lessor shall nav_ no obligation io pay any Purcnase Price unl=ss all reasor�abie conditions
es:ablished by Lessor ("r"undina Condiiions°) have been saE'sned, incfuding, without limitation, th�
followinc: (2) Lessee 'r,�s sianed and deliverod £ne Schedule and i'ts Schedule A-1; (b) no Event oT De"raul;
;hall have occurred and be continuing; (c) no mai°nal adverse chanoe shall have occurrad in the internal
Revenue Code ot "1986, 2s am=_ndad, and the related reoulations and rulings thereunder(coll2ctiv=ly, tne
°Code"); (d; no materal adverse crange shall have occurred in the financial condition of Lessz= or any
Supplier, �_) the Equipmeni is raasorably satisfactory to Lessor and is free and clear o`any Li>ns (exceot
Lessors Liens); (� all representations of L�ssee in the Lease remain true, accuate and compl�i=_; and (g)
Lessor has received all of th_ foliowino documents, which shali be reasonably sa'tisfactory, in form and
suos�ance, to L=ssor. 1i) evioenc=_ of insuren�e coverag= required by the Lezs=, (2) an opinion o�
Lessee's cour.sel; (3; reasonably detailed invoic°s for the Equipm=_nt; (4) Uniform Commercal Cod2
(UCCI firancino statemenis, (5) copies of resolutions by Lessee's goveming body, duly auihorizing tn=
Lease and incumbency certificates for fhe person(s1 who will sign the Le2s�; (6) such documen>.s and
c=riincaies r�latino ie the 'tax�xemot iniaresi payaole under the Lease (induding, witnouf limitafion, IRS
Form 8038G or 8033GC) as lessor may requ>st; and j7) such other documents and informafion
pr=_viously identified by L=ssor or otherwise rezsonably requested.by Lessor.
,.. TERMINATIOh FOR GOVERNMENTAL NON-APPROPR{ATIONS.
n.1 For each Lease, Lesse= represents and warrants: that it has aporopriafed and budaeted
the necessary funds tc make all Rent Payments requi�ed pursuant to such Lease ior the remainder of the
fiscai y=ar in wnich the Lease Term comm=nces; and tna*, i± intends to make Rzn; Payments for tne fufl
L�ase Term 2s scnedul=d on th> applicable Schedule A-1 so fong as funds are appropnat=d in eacn
fiscal year by its oovernfng body. Lessee reasonabiy beli=ves that moneys in an amount su�icient to
make all Rent Paym=nts can and will lawtully b= appropriated and made avaikable therefor. All R=nt
Payments shall be payable out o� the gen=ral funds of Lessee or oui o� other funds le¢ally avzilable
tnereioc Lessor agraes thai the Leases wip not be general obligations of Less�e and thai tne Leases
shall not consfitui= oleda=_s of eitner the full �aith and credit of Lessee or the taxing power of Lessee.
62 If Lesse_'s goveming body Pails to approoriate sufficient funds in any fiscal year for Rent
°aymenis or other paymenis due under a Lease and if other funds arz not available tor such pzyments,
tn=n a "Noo-Aopropraiion Even' shall be deemed to have occurr=d. If a Non-ApproprGtion Event
occurs, th=n: (a) Lessee shall give Lessor immediate notice of such Non-Appropria5on Event and provide
written evidence of such iailure by Lessee's governing body; (b) on tne P.etum Daie; Lessee shall return
to Lessor all, but not i=ss than al!, of the Equiomen' cov=red by the afiected Lease, at Lesse�s sol<
ezoense, in ac;ordanc=_ with Sec[ion 21 nereoi; and (c) the afrect�d Lezse shali ierminat= on the Return
Date witnoui peralty or expense 'to L_ssee, provided, that L=sseF shall pay all Ren't Paymenis and other
amounts payaole under tne affected Lease for which funds shall have been appropriated or are otherwise
available, arovid=d fu�tner, that Lessee shall pay month-tamonth rent at tne ret� set forth ir tne afr2cted
Le2s= ior eacn month or oar? thereof that Lzssee fails Eo return tne Equipment under this Section 6.2.
"Return Cate' means fn= las day of th= nscal year ior which appropriations w2re made Tor the RerY
Paymen*.s due under z Lease.
7. NO WAP.RANTY BY L=SSOR. Th= Equipment is sold "AS IS". LESScE ACKNOW!EDGES
THAT LESSOR DID NOT MANU�ACTURE THE EQUIPMENT. LESSOR DOES NOT REPRESENT
THE MANUFACTURER, OWNER, OR DEALER, AND LESSEE SELECTED THE EQUIPMENT BASED
UPON LESSEE'S OWN JUDuMcNT. LESSOP. MAKES NO WARRANTIES, EXPRcSS OR IM?LIED,
INCLUDING WARRANTIES OF �dIERCHANTABILIN OR FITNESS FOR A PARTICULAR PURr'OSE
OR OTHERW�SE OR AS TO THE cQUIPMENT'S VALUF; DESIGN, CONDlTIO�, USE, CA?ACfTY OR
DUr2ABILITY. LESScE ,4GREE5 THAT REGARDLESS OF CAUSE, LESSOR !S NOT RESPONSIBLE
FOR, AND LESSEc WILL NOT IViAKE ANY CLAIM AGAIkST LESSOR FOR, ANY DAMAGES;
WHETHcR COPlScQUENTIAL, DIRECT, SPECfAL OR INDIRECT INCURRED BY LESSEE Ih
CONNEC�ION WITH THc EQUiPMENT OR THIS MASTER LcASE — LEASE PURCHASE
AGR=�McNT. NEITHcR FH� MANUFACTURER, THE DEALEP., NOR AtvY SAL'eSPERSON,
EMPLOY=� OR AGENT Or TH� DERLER OR MANUrACTUR�R, IS LESSOR'S AGENT OR HP.S
ANY AUTHORfTY TO SPEAK FOR LESSOR OR TO BIND LESSOR IN ANY WfiY. For and durinc tne
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°_X�i°cc O� IiT7011x� a?pii�ble *.o anY �-��Jl,piil�fii H7G �>aSOi 211L'7W[Z°c I �55_= LG ODi21f1 ul° �USi0iTi3iJ
'r_NI�=S il1R1:Sh°_d ifi can�=c:i�n Wltfl S�J:(i wara-�u== a: L°S3y�> SOIc 2XD°i75°. =SS?c 87�8°5 Li�i (o�
a�; =�J;Dfil�fli WIII f�V� b°@0 ,pt1iC�35?� b)� �PSSOi i� aC:O�G3nCE Wifh L°aS?c�c SJ2Cjij:.aijpft5 iTOT
JUD�II?� 5°I2�i°� DY �°SS°?, �D} �°SSOi a f10i 2 fi�3ilUS3CCU�0f Oi 0°cl°i Oi any couipm_,-�: and h25 f10
Ii3DI�liV i0i ifl° C°IIV2N O( IiiSiZ�i3fiOfi Di eilY CQUIJT°ii: �C� L°SSOi Z55llfT1°� no obliaauon wr�n res�c; IO
2fiV fi;aitU;BCtUfci�S Of$U'v�li°i'S �iO�u��L'3if3fitl°5 Oi 7U3fdi7fi�5, �G�� (iG iT�aflL�i2�i�J?�Oi S�JDDIi�' Df 3;�V
f?�i25°OiciIVE Oi said pa�i=__= i=_ an z?a�: oi L=_ssar, and �°� 3Ry v.arzniV, f��f25?ii:3il0��, �J112;cfiLV O(
?C�i'iTl°�i fT18'7° D}' 3qy' T3l1Ji2CiUf°i Of $I1pDl12i Of Hfl\' (2�fB58i1In'IIV� Oi 5810 D3i�?a 3ita�� flOi �?
bindinc u�r� Leasor.
6. Ti7!�; SECURITI' IN'fER�ST.
2.1 1.1�7i� Lessee's accep;ancs o� any =ouioment Utt�°t ITS �°2S2, iItIE LO i71° E�UIDfT1_f1i Sh3II
VBSi If� �°SS°_?, SUDIBCi CO L°SSDi�S 5°CUi1Ty NT°fBSi tn2rein and all or Lessor's o�h°_( ilC1iI5 U(1o?f 5'!C�
�°25? Ii1C�U�l'7y, wlFftOtli IITIi3LlOfi, S�U0f15 C, 20 of1G 21 h?f°OT. �
. .�'..2 f�5 �:A��3I°'8� S°�lJ(ICY i0i ifl° S?Ct1i°U' Obli7afr�ns, Less=e h=r=by orenis io �?SSOf 2 ilf3i
pnoti7� s=_curity int=_rest in an1' and all ot En= Equipm=_ni (now exisuny or herea��er acauired) and any �nd
_ a�� �fOC°_?35 f}7>_i?Oi. L2552° Bdf°°S iD ?X"c.^.UIc a'(1� �°�IV?i i0 L°SSOi 3�� necessay �O�t1R1°f1TB i0
EVitl_i1C_ BiiC D_RBC: S�JOfI S°�41f1[V Iili�!°St, 1(1C�U�7I(1�, Wlii'IOU� �Ifill�i7.UOfi, �,JfiffOfTTI C0f�1fi1°fCtd� CO7B
(UCC) tili3il�(f7C S.a[2rt1°fi[S 8t1C' 3�y anendrn�nis thar;e.
8.3 °Se�ur=d Obiica[ions' m_ans Lesse='= obfiaa*.ions ie pay all R=nt Paym=nis and all ofner
2ITI08O'u O!1° 2�0 NeVZDI? tl�dBf 2II Df?�°Ri and iutur= �?2SE5 cil�.''i iD D°,�Of�i a00 OJS°_V? BII COV8:72i7��
• ZCic:i�i_fii5 ane condiiion=_ (direct Of IftOlf°Ci, 8ti501llt? Of COf1Ui1�°fli, otl? Of D D°COiI'15 C�JE, Di°XISJii� Oi
}1?f°_oiC?f BfISIf1C� Oi L?SSBE L1f102�2II DfES°i1i afld il7iJf= Lc'25°5,
°. °ERSONAL PRO°ERTY. .411 =quipmeni is anc will rzmain �rsonal properiy and vrill not be
daemx to �= a�`tt�c or a<ia�h�io r�l z;:an_or any ouilding �nerzon.
�0. MAINTENANCE AND OPcRATION. Lesse= a�rxs it snall, a; iis sole =xpensa: (z) repai; and
main;ain all Equipm>n: in good condiiion and wor'King ord=r, in a�cordanc= with manufaciurers
insiruc5ons, and supply and instafl al! repfacemen: oarts or otner d=_vic�� when r2auir=d to so main�in
fn� �eui�m=rt o: wnan reauired by applicaol� faw or ryaularion, wni�h parts or devic�; snall
au�om=_5:zlly b>_com= par o�I�° �auiomen�, 8f77 (`J) L'>2 Bfld OD?�iB 211 _QUl�fil_fli I�i a careful ranner
in tne norral course o�iis operaiions anc onl�� for tne auroeses fa vmicn r was desicn� in accorda�ce
Wlifi tllE fTiafllfiBCIDi°i S WdRHflty' f°quir_m=n'ts, 8fiv COfT17�V.\YI{?7 3�� IBWS =_ne recufafr�n; (0l3fif10 IC til°
CvUlDfil@Ilt. Ii 2�y EOUIDR7°fli i5 CL'S?Om3�lIY COVBi°� DY z mzi�t=_nance agi°_RI_�i, �?552? WIII PJ�iIl5�1
L°SoOf Wlifl c fT18lfli?f18�C? 3728R1°fli bV a pazy r�a;onaofy saiisia::iory to L_ssor. No mzint=nan�e or
OUl°i S°_NICB i0i any E?uipmeni WI�� o� provid=_� bV �°S>OC ��SS22 WI�I f10i fitafC=_ any ali0fcU015,
addi:ions or improv=ments ("fmorow_m�nts°) io any �q�iomen: wi:noui Le;sor's pnor wri<ien cons2nt
unl=ss tne improv=_ments may � r=_a�ily r=_move� wrsou; damao= io tn� ope2tion, value or uti(i*.y oi
suc�, =euiom=rt, bUi zny sucn fmprov=n_n;s noi r=mow_d D�Of YD�na 'termina5on Oi tne appiicabk Laase
s;�all �u:omaii:zlly o_corn=_ oaR ot tn=_ cauipment.
1 i. LOCATIOk; INS°cCT10N. �quiom=nt wiii no; x remov=d irom, cr i� _quipm=n: i; rolliny stock its
�°(T3f1�0i u2r WIII ilOi D'c CFciIO°C TOf7l, ih° �O;cilOii WltflO�i Lessors DfIQi W�h°0 COi15°i�i V/hi�h WIII
i10: CF' llfif22>O�iB�h' VJI(lifl°_��. UDOfi f3350f1Z�D�£ l0[IC° TG L°SS°9� L°_SSOi may ?:'li°i �1B LO„r"'cil0i� O(
9!S°Wfl?fc 4Uf1(1�� f10fTT10� 7L'Slil°SS hours io inspeci tn=_ =quiamen!.
i2. LIEnS, SUBLEASES AND TFiXcS.
i2.I L=_:s>. snall k__� 8�� �OI11,0(fi°!li if°B 2(1Ci CI°HC Oi all Li=nS _XC�.�i SI1C5_ Li=ns cr=_at=_c une=_r
� � Itn LB?SE. �?55� Sfi2II flOi SUDI°i Di I'cfld any =ouipmen: or �°RTlli Ii P 7° t152d DY cfiVOi12 Olilcf *.nan
L:=_s��or L=ss�s's em�lov°°s.
1�.� �°_55°_9 S�iB�� v2Y Wil°fi C+U? 8�� 13X?5 Wfll�il r'eV f10W O( (1°_(�.3i:�f JE 1ilDCS°_C L'}7Cf1 c('iV
��7UIDfi1?fli or is own=rsni^, I?251i1C„ rzn:al, Sa�°, DUfCi125c, DC55?SSIOfI Oi L'S_, I1�Ofi 8f1}' �3?>c' Oi �,'JO❑
BftV I'Z2.Ili Paym=_ns or any otner GHYif1°f7�5 OU? IJi7C°i any Lsase. li�°Sa'2E Sc115 IG 62\'3UCfi I dX�S W11°fl
' J -
10-9
=_es
du�; Lessor snall nav� tne rignt, '�ui nai tne ooilca[ion, io pay such Tax=s. Ir L>ssor cays any such
i axes, then Lzssee snalf, upon demand, imm=diat�ly reimburse Lessor tnereior. "Taxes" means pres2n!
and iu[ur=_ :axes, Ievizs, duii=s, zssessments or otner governmental charg�s tha; ar=_ noi b2s�d on the
n=t income of Lessor, wh=tner th�y ar=_ 2ss=ss=d to or payabfe by Less� or Lessor, including, w�itnou't
iimitaiion (a) saizs, �se, =xcise, iic�r.sing: r=gisirafion, fitiing, aross receip*s, s.amp and o2rsonal orop=_rty
taxes, and (b) int>res't, �r,al�ies or nn_s on any oi the foregoing.
i�. R:SK O� LOSS.
13.1 Lesse= bear;the entir= nsk of ioss, seft, damage or destruction of any Equipment ir, whof=
or in oart from any r2ason wnatsoever ("Casualty Loss"j. No Casu2lty Loss to any Equipment shall
rzii2v2 L°ss=e from the oblicafion to make any Rent Payments or to pertorm any othar obliaaoon under
any Le2s=_. Proceeds of am� insurenc= recov�ry will oe appii=d to Lessee's obfigations und=r this Szciion
13.
13.2 lr a C2suat'ry Loss occurs to any Equipmeni, L2ssee shall immediately notify Lessor of the
s2me and L°ss=e shall, unizss otherwise dirzctzd by L=ssor, immsdiateiy r=pair the same.
i3.3 li Lessor denrmines tha:any item of Equipment nas suffered a Czsualty Loss beyond repair
("Lost Equipmenf"), then Lessee shall either (a) immediately replace the Lost Equipment witn simikar
equipm=n't in good repair, condition and workiny order fre= and cl�ar of any Lier,s (except Lessor's Li=ns)
and dellv=r io Lessor a oill of sal= coverina the rzplacem=nt 2quipm=n?, in which ev2ni such repla�emeni
equipment snall automafi�alfy b2 Eauipm=ni undar the applicable L2ase; or (b) on �ne next scheduled
Reni Paymeni dat_, pay Lessor (i) all amounts owzd by Less2e under th2 applicable Lease, including the
Rent Payment due on sucn date plus (ii) an amouni equal to the applicable Termination Value s>t forth in
tne Paymen+ Sch=dule to the appiicabl= L�ase. If Lessee is making such payment witn resoect to 1=ss
t^an all of ine �quipm=nt under a L=ase, then Lessor will provide Lessee with the pro rata amount of th2
Rent Payment and 7ermirafion Value 'to be paid by Lesse=with respect to the Lost Equipment.
13.4 Lessee snali bear th: risk of Icss for, shall pay directly, and shall defend aoains� any and all
claims, fiabiiiii=s, oroce_di�gs, ac'tions, expenses (including r=asonable attomey's �ees), damaaes or
foss>s arisinq under or related to any �quipment, inciuding, but not limited 'to, the possession, ownershio,
lease, use or operation thereo�. Thes=_obligafions ot Lesse= shall survive any expiration or termination of
any L=ase. Lessee shall not bear th= risk of loss of, nor pay for, any daims, liabifities, proceedinas,
aciions, exp=n>=s (including attomey's fees), damages or Iesses whicn aris> directly from even!s
o�curnno after any Eouipmen:hzs b2en retumed by Lesse_ to Lessor in accordance with tne tarms of the
applfcable Lease or wnich anse directiy irom tne gross negligence or,willTUl misconduct of Lessor.
14. INSURANCc.
i4.1 (a) L=sse� a: i:s sole exp=nse snall a' alI fimes keep all Equipment insur>d againsi all risks
o�loss or damage from every cause whatsoever for an amount not less than the T=rmination Value of tne
Equioment. Proceeds or any such insurance covering damage or loss of any Equipmznt shall be payable
to Lessor as loss pzy°°. (b) The To'tzl Amoun: Financed a5 set forth on th= Schedul2 A-1 do=s not
indude th=_ paymen: oi any przmium ior any liabiliiy ir.surance coveragF for oodily injury and/or property
damaoe causee to others and no such insu2nce will be purchased by L=ssor. (c) L>ss>e at its sole
expense shall at aIi iimes carry publ'ic liahilit�� and property damage insurance In amounts reasonably
satisaciory to Lessor orote;;iing Lessze and Lessor from Iiabiiities for injuries to persons and da-age to
oroperty of othars relating in any way 'to any Equipment. Proceeds or any such pubiic liaoili'ty or oroperiy
insuranc= snall be payabi� nrst to Lzssor zs additional insured to the e�=nt of i!s fiabili'ry, and inen to
Lesse=_.
14.2 All insurers shal! b= r=zsonably satisiactory tc Lessor. Lessee shall promptfy deliv>r to
L=ssor saiisiacto�� eviden�e o� r�quired insurance coveraa= and all renewals and r>piac=menis th=reof.
�ach insurance policy will requir� tha? tn= insur=r give Lessor at least 3G days prior writien notic� of any
cancellation of such poiicy and will require that Lessor's interests remain insur=d regardVess ot any act,
error, misreoraszntation, omission or n=qlect of Lessee. The ir,surance maintained by Lessee s�all o�
primary witnou;any right ot contnbu4ion irom insurance which mav be maint3ined by Lessor.
15. PURCHASE OFTION. �Jpor tnirty (30) days prior written noiice oy Lessee to Lessor, and so long as
Cnere is no Even: o� D=;ault th=n exisiing, Lessee shall have the opiion to purch2se all, but not fess tFan
- d -
� �-� �
=es
@��, Oi tllc cOJI.^.mBi1i C�tie!°d DY fl L�25c Ofi any ^n°1ii �BVrI_ni O�JE vci9 bY �2yiny io L�SSOi all Rcni
?8V�°�CS T�°i� dJc (11�IUdlf1� BC�N°G I[li?2>i, li BnY� DILS fil° I=_�irauor� V3IJ2 BIi10I1f1i 59i TORO Ofi ih°
?@V(il°li SC:I°QUI: [G iD_ 2,'J,DIIC8DI5 L285c iOf Sl1Cfi G'c*.�. U�71 58IISiBCiIOi� DV �°SSFc Oi 'atlC�! �l1CCh252
COfh7liVJi95, L°_SSOi Si�3�� f2�?HSE Ii5 �I°ii Oii SUCl1 =QUIDfi1°(li 8i1� L?35Bc Sti3�� 2i31fi IS Ui�° [�� 5!'Cil
Equi�men:".4S-l.C., ���C�._-�J," WI`J10Ui reprasania�ion or WBfiZ�tt' D}' L�5>O(, BK7f255 Of IiTDll3fi, ?XC2Di
f0�a repres=n�a:ion ii13i cu�F E�UlDR1°ili IS i�� and ci�a; Oi any Li>_ns craat_= oy �°5>Oi.
'15. L�SSEc'S P.'cFR�S�h'TATIONS AND WARRAhlTI�S. Wi*n resp��t ic �=_cn La>e and its
�auipmeni, Less=° har�by repres=nts and warants to L°ssor tna_
�a) �°SSc_ ii25 iLJ�� DOW°i, 8Ji1i071iy and I@G8� flOfli IO °_X°:L�ic 3ii0 0°�IV3i ulE �E,.RSc 0i1�? tD
D"cr0(Til ITS ODIICflt10f1S Uftd?f ti'1c �=zse, anc all SUCh cCtlOflS �BV: DE3i� Ofll\' autho�ec by aapropri�t=
nndines and a�5ons o�Lasa�'s aovemina body;
�D� Jl°_ L_zs_ h2s been dul}� =_xe�ut�d and d=�IV?f?L� �y �esse=. and .'�.Jf75UiUi�S c �°y�, V3�I!' Bl1C
bindin; obliaation of L�:s�e, enforc=able in a,-.cordanc=wrh its t=_rris;
(C� t(1° L°_352 IS BUillOfiZ°C und=r, and fne au:hon_e5o��, exe�u3or 3f1G �_IIV?f)' Di �19 �2�5c
^ampiies wi�n, aL' appli�abl= 4aoe�a(, siat_ 2na local laws and r=guh;ions (induding, ou; no: limit=d m, all
op:�� meefing, public �iddine and pro�m a�auisivon laH�s) and all apoiicaole judgm=ns and cour
orders. - -
(d) tne =x>cu'tior�, d=fiv=ry znd p=_rromanc=_ by Lesse= o� its oolica'tions undzr tne Lea� will not
�25U1i i0 2 bf'cd::h or violafion o�, flOi C�f15lliUi? a de�auli und>_r, any agre��ent, I°z58 O�Otf10i I[lStNT°fii
i��y��jr�� I ��Zc IS c aeRV Oi DV K'tll�ii L°55°°�S 7fOD°(it°5 fiBV D° oound or afiB�i°^u;
(°) tnere is no pending, or [D ii'lE b?Si D� L?558_�s knowiedqe ti�rat�n=q Ilii33[IOfi Gi 3f1}' ReiUiF
whicn may hav= a mat=_nal advers=_ =��ect on Lyss�'s abilit�� io perom-� i� oblicaiions und=; the Leas=;
and
(� Less�e is a sat_, or a �oliii,;al subdrvision tn=r=of, as r>iemc ie in Szcion 103 0�tna Code,
and L°_?5°°�S Ob�ICeflOfi undzr tn= L�HS°CAP.SiItlll?S cfl °f1TOfC�DI° ODIiG360q ISSl73� Ofi D°fi3�i Of a Si'at°
or a ooliii�al subdivisior� th_r=of.
1 i. TAX COVcNANTS. L=ss=> n=r=_by cov�nan*,s and aar<_w E�at
� (c� �°55?O shail comply wzn ail o�fne r�Guirm�nis or S°_CJOfI 1e9(a) and S�.:iio�; i49(e) o� 5i=
CAac, ?5 L1° 58R1? rt181' IJE amended tror� :ime i0 UI71°, 8Ru su�n cempiiance Shzll inciude, oui i90i �5
�ItTll[?C f0, k�pinc a �ompi°i° and a��urai= fBCO�d Oi 3�V 2551QlifT12f1i5 Oi eil)' �°�>= and ex�.uiina and
niir,e I�'temal R_v=_nu= rorm 8038G or 8C36GC, 2s 'th= c2sa may bs, and any other infomziion
s"i=_m=n*.s r=asorably recu�s�d �y L=ssor,
('o) Lesse° snall not do (or caus° io !� done) any act wni�h will ause, or by omissior� of any aC
zliow, any Ceas_ t�oe ar `aroit�gz oond`within tn= m�anine oi S=c:ion 148(a) o�the Code or any L_a;�
:c� 2 `pnva[_ a�'tivity bond°witnin tnz msaninc o�S=_ciion 1t}(a)of tne Code; and
(c) L°ss� s�all noi do (ar ,:aus= io be don_) any ac: wni�n will �us=, or by oni;;ion of any zci
c��OK', i0? ioi=r:st por�cn Oi any rZ9ili �3V�T°flic i0 � Oi �JECOiT12 IOCIl1G8�I? 10 afC>5 If7�OT1? tOi ^?d�ral
IRG�iil? idXc00f� DUfDOS:..i llft40f til"c C.OQ_. .
{d'7 li!=ssor=iG�=r(i) rro�aiv� notics, in any iorm, from tne IRS; or (ii) r�>soraoly de*>mine=_,
:i253� Oft 0f� OJI(llOii Oi LT7°�7°ilO°�ii �cX CO:1rz52I S_�c�i8� bV �°'>SOi 3i1C BaDfOV?C Dy �?SS�,WNCI7
a�proval L�ss=e Si c�� ilOi unreasc„abty witnnold, fra:L_SSOi R18}' (lOi °X:.�!ld_ ii1E ffl[@fSSi��;,pon=n�o;
any Rern PayfTl°fli Ufld'ci 2 Tax-�ampc L�ase from 1�h°fal df055 If7COm? DB�BUSE L°SSB° 7fc8G'1?� 2
covanant con�inec h>rein, tnen �:SS°° 5�al! pay tc L�s=or, �vithin tniry (30)d2VS zi�2f �?SSOi f10[i�l°5
��SSc° Oi SUCO O°t2�fi�iG200f7, tfi5 efTlOUfli�M11Ch, Wtli� 25�°Ci i0 �°(lf PcVfi12(li5 Di9V10U5�V paie ane
�kine inio ac�oun;aIl ��naliies, nnas, int�r�s and adei:ions ie ax(inciudinc all i=d�ral, s�t� anc io:al
i2X°S imoesed on tn� ini=rest comoon=_ni Gi 8�� I�.°_fli Pavm=nts under sucn I aX-EX°R1Di L°.95�d110
ii1fOUCi1 u'1°_Cci° Oi sucn ev=_n:j tha_aro ina�eC'' Oil �°_SSOf 25 c 2511�i Oi u'1= �OSS Oi[�l° °_X��l'SIOfI, WI��
f°_SI•]i° L �°SSOi ti7B Seli i° 0fici=u�:.VI?�C Oil �n�transactio;� ?VI�BlI�'..°�7 DV >UCi'�Taz-�c=_mo:L�se
10-11
�es
lassuming t�a:tne nignest m�rainal coroorat=_ tax ratej tnat it would 'nav� roaiized nao fne exclusion not
bean losi. Additiorally, Lessee aarees tnat upon the occurrence or sucn an eveni with r�;pect to G
?2x-Exema?Le2se, i! shall oay addiiional ron't io Lessor or each su��e=ding R=nt �aymeni due datz in
such amouni 2s will maintain sucn aner-.ax yield tc Lessor. L=ssor's dei=rminaiion of the amount
n�cessay[o maintain its afte�-tax yield as provld>d in tnis subs=ction (b) sFall be conclusiv2 jabs=ni
manif2st�7or1. Notwiti:standing an�hing in �Tax-Ex°mpt L=zse to tha contrary, any payment fha;
Lessae is r�auir=c to make pursu2ni to 'this subsection (o) srall be mad�only Trom L°cally Available
Funds.
1S. ASSIGNMENT-
15.1 Less°� shall not assign, transrar, pledge, hypothecate, nor grant any Lien on, nor otherwise
dispos= ot, any Leas> or any Equipmeni or any interesi in any Lease or Eauipm�nt.
182 Lessor may essign its righ!s, title and interest in and to any Lease or any Eauipment, and/or
may arant or assign a secu�ty interest in any Laas= and iis Cquipment, in whol=_ or in part, to any party at
any time. Any such assign=e or lier holder (an "kssian�") shall have all 01 the rioh'ts o�Lessor und>r the
aopficabl° L=ase. LESSEE AGRcES NOT TO ASSERT AGAINST ANY ASSIGNEE ANY CI.AIMS,
ABATEMENTS, SETOFrS, COUNTERCLAIMS, RECOUPMEIYT OR ANY 6THER SIMILAFZ
DEFENSES WHICH LESSEc MAY HAVE AGAIfvST LESSOR. Unless otherwise agreed by Lesse= in
writing, any such assignmen;ransaction shall not release l.essor from any of Lessor's obliga'cions und>r
the aapiicabl2 L=ase. An as�ianm=nt or reassianment of any of Lessors right, 'tiile or in'ter>st in a Le=se
or i'ts Equioment shall be enforceable against Lessee onfy after Lessee receives a wriften noiice of
zssignm=_nt which dis�loses the r�ame and address of each such Assign=e. Lessee shall k=ep a
comol=te and accurai° r°�ord oi all such assionmen*s in the form necessary to comply witn S=ction
i49(a) of the Code. Lesse= aarees to acknowledge in writing any such assignments if so r>quested.
18.3 Each Assionee oi a Leas� hereby agrzes that: (a) the ierm Secured Oofigaiions zs used in
SecSon 8.3 nereof is hereby amended to include and appiy to all obiicaiior.s of Less>e und=r th�
Assianed Leases and to excfud=_ the obiigations of Lessee under any Non-Assigned Leases; (b) said
Assignez shall hav= no Lien on, nor any claim to, nor any interest oi any kind in, any Non-Assigned
Leases; and (c) P,ssign=e shall exercise its riohts, benefiEs and remedies as tne zssignee o� Lessor
(including, without limi;ation, the remedi�s under Seciion 20 of the Master Lease) sol�ly with r=spact io
the Assianed Leases. "Assigned Leases" mzans only those Leases which have been assigned io an
Assignee pursuant to a written aar>em=nt; and "Non-Assigned Leas�s" means alI Leases exciudina the
4ssianed Lezs=s.
18.4 Subject to the for�going, each Lease inures td the benent of and is binding upon the neirs,
executors, adminisirator;, successors and zssians of the oarEies her2to.
19. EVENTS OF DEFAULT. For each Lease, "Event oi Default° m2ans the occurrence oi any one or
mor= o� the followino even*.s as they may rehate to such Lease: (a) Lesse= tails to mak= zny R=nt
Payment (or any oth=r paymeni) as it bacom=s due in accordance with the terms of fn=_ Lease, anc any
sucn raifure coniinu=s tor ier (10) days a�ter the due date thereof; (b) Le;see fails 'to pertorrr or obs°roe
any of i'ts obiigaiior.s under Sections 12.1, �4 or 1n,1 hereof; (c) Lessee 4ails to periorm or observ=_ any
other covenant, condition or agreament to be perFormed or observed by it under the L=ase and such
iailure is not cured wf'tnir� tnirty (3Q) days after r=ceipt of written notice th=reof by Lessor, (d) any
sat°m�n�, repres2ntaiion or waranty made by L�sse° In the L=ase or in any writing defivered by Lessee
oursuant th=reio or in connection th=rewith proves ai any time to have been false, misieadine or
erron=ous in any maizrai r=_spec` zs oi the fim= when mad=; je) Less� applies for or car.sents io ;n>
3'�i701�fTT12fii Oi 2 f_�BIVBf, INSl2_, ��Of'.SONaiOf Of IiqUi0aY0i Oi �°SS@° Of OL 8�� Oi a subsiantial par o� I!S
assats, or a pztiiion ior rolief is filed 'oy Less>_= under any federal or state bankruotcy, insolvency or
similar faw, or c p2ii[ion in a proceeding under any rederal or siate bankruptcy, insolvency or similar law is
tiled acair.si Less=e and is no; dismiss=d witnin sixty (50) days tnereafter, or!f) Less�=_ shall be in d�iault
und=r any oth=r L=asz or under any other nnancina agreement execui=d at any Eim>witn Les;or.
2G. REMEDiES. li any cv=n:ot DeFault occu:s, th=n L_ssor may, at its ootion, =xercise any one o: more
of the followinc remedies:
_ g _
10-12
=n,
�c� �°�SOi �T�?V iF�Ulic L°a5@_ i0 G3Y �3ilr I°SS°°_ 37i°25 ii�3i R SOn�� veV� cll 3R10L'il?5 u'7Efi
C�Jii°OiIV .7!E'c Ul7G9f 21� �ezses and all ra���=_ininc ?an: ?ayments du� und=r 211 ��852S �IIfI;1C ihE i15;,8� -
V°3i ill ?iTBCi Wfl°ft ul° C�12J�f OCCUiB i0�°f710f 1�9tf1 Ifti?i95f Oi1 SU�fi OfitOtJt1G 8i G�� ��ian=,� IB�YUI 22E
TOiTI �il'> Gaic Oi �_SfrJfS O9iil�fiG i0i SUCi� 62VR1°ili.
(b) L�sor nay r=quir= L°SS?° IO DfOR7�tIV �°iJfri dII _OUIDfi1Blli t0 �35SOf IR fhE ,T�3fif1°� 5°:TOff�l
in Seccion 2 i �8ilr. I°SS?°_ 37f2°c 'i)�i�i li S�i8�� SO f°turn �__ =quiPm_n:), er L°S50t T8)'� ci (i5 O'�flOfl, Bllf°i
UDQ� il° premises wn_r>_ Bfl}' -'J,UID(il°ili t5 �DC2iB.ri 3lfa f°_a055°SS 'aliCfi =�U3�fi1°!li v�tn��u; d=_mand or
(10E1:,;., N�ihOUi 2i1V CeJ'J? Of02( Ot Ou'1?i pf7i C0S5 Of;aw and witt1011i 1{3DI�RY i0i a�)' u8f1iB�E OC,^,251C;1°G DY
SUCfi f27QSS25510f1;
(C} �?SSOf iT�cV 52��, �_ZSc Oi OU7°nY152 �IS',JQ'>° Oi cllV CaUi7R1?(ti, 10 Wf10Ic Oi i� DBR, in an= Oi
iit0�2 ��JJ�IC Of DfIV�i2 L2;153�[IO�S, and r Lessor so dis��s� o�any �cuipment, tnen �2>SOi snalf n_;ain
tne enEir pro;°eds a sucn disposi*.ion free oi any ciaims or Lessee, provid2ri, tnzt tn_ n=i proc�=_e<_ of
a�y such disposifion snall be appii=_d tc amounts payabl= by !=s;e= und�r claus=_ (a; aoove o� tnis
S°�VIIOfI O��y to fne e�dani u�ci SIJ�fi �Bi Di O��°a5 EXC9°u i(10 3Dpli��ble 7�rminafion Value Sci TOff77 16 iIl° -
applicabl� Sct�dul=_.=,-1;
�C�� �°SSOi R13V t=_rminat=, can�e! or r=_scind any �?350 25 tc any and all Ca111t7R1?ili;
. �°� Lessor may �xerci;e .=ny Oiil°( (I�Iii, rem=dy or pnvii=_o=_ wnici; R;ay b° 3VBila7lc iJ L°SSOf -
L'il0°i B�DIIC2��� I8N' Of, Dy appropraie �Uft acaor� 0i �aW Oi li� ?Q�ITy, L°SSOf R'iaY ?f1TOfCE any oi -
LVss2s's obfica'vons under any L�zs=; and/or
(� L?SSOi�aV i��7,'J12 L?>SHB t� D2y (3p� �E552_ 2af°?5 i�'ci ti SFieII DeY� 3II OU:-0i-�OCkEi COS�
and ?XD°i1525 incurr=d by L=ssor as � r�sult (direcJy or indirec8yl o; the �ven't o� Deraul; and/or oi
Lzssors acfions undar this seciion, induding, without limi,auon, any a�tom=y f=__s and exoenses and zny
CASTS B�Zt�d TO i719 f°,DO55?SSIOil, 53i°k?BDlfly, Si02��°_, f°D21i, �9C0(17iJOillfls Of 0lS,D�Sf[IOfI Oi ZfIY -
EafllDiilEiit '
Non= oi th_ abovz rem=_di=s is _xclusive, but each is cumulative and in addition to any oCn=r rom=dy
3V31IflDIE CG �°SSOL �°SSOf 5 OXHfCISB Oi Ofl° Oi mor=_ remedi=_s shaii flOi af2C�l7d? IiS.°_X?!'Jl52 Oi 3fiV - .
Ot71°i rnm��y. No ��i2Y Oi 21�Uic Oii f}72 DBTi Oi L2S50( iO ex>rcis� any rem=dy unoer 2ily �E25_ Sf18��
op_a?� a;a waiv=r[nereo�, nor as an acquiescence in any defaul; nor shail any sinal� or caiial ex=rcise
o�any remzdy preclud= any oth=r=_x=roisz �_raoi or tne axercis_of any otner rem�dy.
2 i. RETURN OF EQUIPMENF. If Lessor is en5tl=_d und_r.ti�=_ provisior.s e� any �_zzs=, includinc any
f=rminaiion ther=or pursuani to S=ciions 5 or 20 0� this Mzsi=r L�;=, ic obiain pcss�;ion or zny
Equipm>ni Oi r L°SS°E IS ODIIG�iOd ai zny iim2 to retum any E�W�fT72fii, fli°fl (3� fitic t0 ihG CQLIIDRIAIIt
s��ali va;: in L=ssor immedai=_ly uoon L=s;or, nofica tner��tc L:.�s�:, and (b) Less� scall, a: i:s soi=_
expens=_ and risk, immedi2tely d�insall, disass_mble, pacl:, ca�e, insure and ro[urr� ina cquipm=_n: tc
Lessor (aU in accordance witn aapliczbl_ indus'try s:ancards) a any fo�iior in fi� �ontin_rtal Unii=_d
Stai=s sel2cfed by L°ssor. Sucn �qui�m=nt s�all oe in th� sain= condi'tion =s wh=� reo2iv_c by Less�
{f�25Di�801@ W�3f, Lc3f and d°_Ji2:;�➢0f1 f?5(lltlfls iTOfii f10fR;8I 3f1G Df0�7°i�J52 ?XC°DL°0}, SR3II D9 Ifl OOOo
op=�aiinc OR7°( BlC Ii 81f1t2fi2i1C° 95 f°41112^ by �2 aoo(i:zbl� L_as=_, Si c�� D° iT°c 3fiG CI:2i oi any
Li:ns (exc=oi L=ssors Lien) anc snall c�mpiy witn all appfic::bk {aw; and r�ulatior.s. Uniii �quipm�ni is
rziurn=c as f20�J1f2� above, all t��ms of the appficabl= L�ase sFzll r=main in rull for> and efect
If7��U�lf1s, WII�OUi Ilfiili��l0(7� OD�102210f15 t0 pay Rzni Paym=nts and IO 1(75U? tfl@ �QUI,DRI°tiL LB55°2
B42BE iD =_xecut° an� dwiv>r to L°SSOf ai! docum�n*s rezsoraoly requ�si=d 'oy L?SSOi i0 BVi.'{80QE (f7°
Fans�ar �Ji �@C8� ane 6?fl°lCi3� ilt�° t0 SIJCh EOl1IDfT1°fYt iD �°SSOi 3f1C� iG °VIO°f1�E tfi? i°i1i11�8i10t1 Oi
LVs;y s ini=_resE in su�n =auipmen:.
Z%. LAW GOVcRNING. Each L�zse shaii be govemed by the taws of the state oi tne lesse> (fhe
"S:ate').
23. NOTIC�S. All roiices tc o= aiv=_� u�der any Leas= s��al! o=_ mad=_ in wrifinc ane eitner D°.'SOf12IIV
4°INOf?.7 Oi Ti2i�?d DV G°iilTi°u �TBII i'v Ftic Oi0°f�ciiY 3i Ii5 2�0255 >_i iDff�i narsin or at sucn address 25
�n= pa�y mzy provide ir wriiinc TOT� rim=_ to 5me. .�ny sucn �io5��s >hall b= d==n>d io hav=_ brn
(°�°IVBC TIV� �J� C8j�5 S11�S0�11°ili ie maiiine if ser: by reoular or c=rtin=c mail, O( 00 Tfic fi9X DL'S1�1°SS
10-13
�CS
day if s=n[by overniant courier, or on tha day of delivery if defivered personally.
24. FINANCIAL INFORPdATION; INDcMNITY; POWER OF k'T i ORNEY. Within thirty (30) days of their
compleiion in each f:sr,al year o� Lessee dunng any Lease Term, Lesse= will defiver to Lessor upon
Le=_sor's rzauest tn� publicly available annual financial iniormation of L=_ssee. To 'tne extent permitted by
kaw, Lessee shall indernni'ry, hold 'narmless and, it Lessor requests, defend Lessor and its sharenolders,
afiliates, empioy=es, d>_al_rs and ag=nts against all Claims directly or indinctfy arisine out of or
connect=c witn ;a) tn< manufactur�, in;taliaiion, use, lease, pessession or defiv=ry or tn� Equipmeni, (b)
any defects in fie Equipmen:, any wronaiul a�t or om!ssior� of Lessee, or its employees and agents, or (c)
any claims of all=_o=d br=ach by Lessze of tnis I�haster Lezse or any related document "Claims" means
all fosses, iiaoili5es, damaoes, p=nalti=s, expens=s (including atiorney's tees and cestsl, claims, ac'cion;
and suits, whether in contra�t, tort or othermise. Lessee hereby appolnis Lessa its trua and lawful
attorn=��-in-fac: (with ful! pow2r of substi'tution) to prepare any Instrument; certificate of title or iirancing
statement covering tn= �quipmen� or otherwise protecfing Lessor's interest in the Equipment, to sign
Less=_='s name with th= sam= force and efrect as if sioned by Lessee, and to fi1= sam= ai tne orop_r
loation(sj; and make claims for, raceive payment of, and execuie and endorse all documents, checks or
draf;s for los=_; tneft, damage or d=siruction to the Equlpment under any insurance.
25. .ANTI-MON�I'L;UNDERING/INTERNATIONAL TRADE LAW COM°LIANCE.
Lessee represen:s 2nd warrants to Lessor, as of the date of this MasterLezse, the date of each
advance of proceeds ouruant to this Master L=ase, the date or any renewal, extension or modincafion or
tnis Mast>_r Lease or any Leas=, and at all times uofil this t✓�2ster Le2se and eacn Lease-has been
t=rminat� anc all amounts ther=under have been ind�feasibly pald in full, tna!: (a) no Covered Entify (i)
is a Sanciioned Person; (ii) has any of i'ts asse!s in a Sanc'tioned Country or in the oossession, custody or
control o� a Sanction=d Perso�; or (iii) does business in or with, or derives any of its opere'ting income
irom investm2nts in or transactions with, any Sa�ctioned Country or Sanc'tioned Person in violatior or any
law, regulaiion, order or oirec�iva eniorced by any Compliance Authority; (b) the proce=ds of any Lezse
will not be used to iund any opera[ions in, fnance any inves[ments or activities in, or, make any oayments
to, a San�Soned Country or Sanctioned Person in violation of any law, r2gWa'tion, order or directiv2
enforoed by any Compliance Authority; (c) t'�= funds used to repay any Lease ar= not derived from any
unlaw�ul activiry; and (dj each Covered Entity is in compliance m�ith, and no Covered Entity enaages in
any dealinos or trersactiores prohibiied by, am� laws of the United States, including but not limited to any
Anti-Terrorism Laws. Lessee covenants and agrees that ii shall immediaiely noiify Lessor in wricing upon
the oc�urrence of z Raoor[abie Compiiance Event.
As used 'nerein: "Anti-Terron;m Laws" means any laws relating to t°rror.sm, trade sanciions
prog;ams and =mbarooes, import/export licensing, money laundering, o[ brioery, all 2s 2mended,
supplem�nted or reptac=_d from iime to iime; "Compfiance Authority' mear.s each and all ot the (a) U.S.
Treasury DeparimenUO�ice of Foreign Asseis Control, (b) U S. Treasury Department/Flnancia� Crimes
Enforc=m=nt Neiv✓ork, (c) U.S. State DeparmenUDlrocto2te of Detense Trade Controls, (d) U.S.
Commero= Decariment�Bureau of Industry and S�cunty, (e) U.S. Iniernal Revenue Service, (f; U.S.
Justice Department, ane �g) U.S. S=cun'ties and Exchange Commission; "Covered �ntity' means Lessee,
its affliates and subsidiaries, all guarantors, pledaors oi collateral, all ownsrs of the ioregoing, and all
brokers or other agents os Lessee acting in any capacity in connection with this Master Le2;e or any
Lease; "Reoor,abie Compfance Event" means that any Covered Entity becomes a Sanciioned Person, or
i; indicted, arraigned, inv_stiaated or custodialfy detained, or receives an Inauiry from requlatory or law
enforcement ofricia!s, ir� connection witn any Anti-Terrorism Law or any predicate cnme to any .4nti-
Terrorisrr� Law, or self-discovers �acts or circumstances implicating any aspect of its opera'tions with fie
actual or possiole violaiion o` any Anti-Terrorism Law, "Sanctioned Country" means a country subi°ct to 2
sanciions proaram main;ained by any Complianc� Authority, and "Sanciioned Person" m2ans any
individual person; group, r�aime, en5iy or tning iisted or othenvise recognized as a specialfy d�sianated,
prohibiied, sanc5oned or debarred person or entity, or subject to any limiiaiions or prohibifions (incfudinq
bu'[ not limitec to tn= blockina oi prooerty or reiecfion oi transactions;, under any order or directive of any
Complianc� Autnority or otnenvise subject to, or specially designaied under, any sancfions prooram
maintained 'oy any Compiianc=_Authoriry.
20. SECTION fiEADINBS- All section headings contained h=rein or in any Schedule zr= for comeni>nce
oi 2f=r=nc= only and do no�denne or iimit the scope of any provision of any Le2se.
- � -
10-14
_��
2%.--�C=Cl�T10N IN COUh I�tZ°ARTS. EeCh j�h°dUl� `O u�i5 M?SF=i L^c85_ f��y � ?x=_^��__. i�
S°V°�I �OUOi_fv'crS, _3;;ii Oi Wf11Cil Sii3�� oe de=_m=c an ori�ic8�, SLii B�I Oi WOIC�i Si�3�l bc d2E�°C 0�=
I(:Siitliii?Ri. OiII}' Of12 COUiIiBi?Jaii Oi 'c3�i1 5'Cf12�L'�E Si13�I b= (Ti2�i(9!� �L'cSSJi'S O�OI�i�I` 3f1C flll Otl?(
� CJUllicfC81?5 Sii��� fK �@_fil_C �UDIIC3t°5. lJ'1 @SSF7i1T�fti Oi or s=_�uny ini=r=st Ifi a(1V SC�'Clllc f�31' DB
cr:�i=_� tnrouoh Lf3�Si°i and �OSS°SSIO:I D�ly 6�fie a�uni�ra� maric=_� "�?SSp,: Ofi01f�31.`
2E.ENTIRE AvRcEM�nri; Vt�RiTTEN AMENDM=NTS. =ach L>.zs�, toa°tn�r witi� tn=_ :xni�iis
ara�n=c fhB�ciG 2f1G �TB�7° 2 FBfi �220i B�C OY;1°f ci.3Gtlfil°f�IS iil°_f°i0, 2�� Cli'1°i 70Cllfil°D'S Of
ir.s:rum=_nts ex2c:r=_d by �°55°� 8ld LeSSOi Ifl CO(1f1°CLIO�� f�10f2Wiu`l, �fiSilP.li2 t;lc 26i1i9 B7fG9fi1°fii
D°-N/°_°!1 tne cacii=_s witl resp�:; to fne lez;e of fic =quiamar�i COVBf�d �12f°bl', 3�C SUCII L?,Z52 5(i3�� ilOi
�� modin=_d, amend_d, alrerod, or change; ?XCBDi wl`u'i it1E ��irzn cons=ni Oi �:SS°? and L?SSOG fiil}'
�lOV(SIOI Oi Bill' �°Z�° iound to oe oronibit�: by 12W S��BII D'c lii@R2�i1V_ i0 iil°_ :Xi2f1i Di SUCfi pfOf71Df➢0(1
Wf`t�?tOUi[I1V811CH21f1G i71° f_ii181(102i Di ii'1° �>_3S2. �
Ciiv oi Cnu;a Vis;a Oshkosn Czoi:al
(°L�s>=_�) �°i>>so�')
3)': By: Jcx-�.�c� V '..�"��_
Titl=_: Ti:le�J�✓.•���.'� (U��„�_�^ c-
�
278 �ourth Ave i�5 �2st 3road Ss�e;. 3?-323irJ:-7
C��ul=_Vis�, C�.91�10 CAItl1�L'S, Oi-i =�215
_ G _
10-15
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
`--� ` % f o�t G��
Glen R. Googins
City Attorney
Dated: 9- z y ' / �
THREE PARTY AGREEMENT
BETWEEN
THE CITY OF CHLJLA VISTA,
OSKOSH CAPITAL, AND
PIERCE MANiJFACTURING, INC.
10-16
. ._ . .. , .. . . ....: _ .. .
, .,. . . , _.;
� .
� .?c� i. �1I�': :�� ��i`�i. i�l\��� tiG3 h�'i• ���1�� i. I;( .
�� cS-.`�i
�>4
`
TFiRE� PAKTY AGREEfYIENT
Ca�d as of S=_o��b=_r 2` ZOiS
°�3°3B?� T33'i> C'.I::a�'�F1Ul? Vts.`'-_ � .
°8:;7=_duls' msans L.�sa Scizduf=_ No. ;i452o0D�� Da�d Ssot�a;b�r 2�. h i;: oa�tne- wiV; r�
>':��3dul,A-5.
:S6i3i3f1Y �6 raoe i] �lE �S?52 S�1901I� �'S:i1ndUl:°� 8it^ 4. �'il� ��7��� I ���_-'�llf�l r
q�reemen; ("Mast=_r L�se� idenfin_d in said ±aas� S:tiedule, d�;_ri5e� above b_iw✓,°n Osl�kes»
�,.apial {"Lssser) and �e Les�� ioz;rtin=_d above vnic n..laF�� m Equimnent da�S� in S�edul> c_1 .
L fis Laa9e �::�a�ule atacny' fn�in ("Eouiprr�n'.`) m b=_ sup?fiad 'oy ?N..rn Manu��tlrino In_.
('Supc6a"). �o� ?�rr end vaivabl= �nsidera5ory 2�iot o� whi;,h i: he2by aaaiowi�o�a, Les�,
Lsas�r and Sup?iier n=_�oy sa� as ialVow-� ' '
i. Nv?withsisn3in; anythin� b th= cenGary in �_ Lea3e S��eduh, L=sr ��sby no�ifi�s l�or frai
��iC :�;uiamen' �3� �O: y?i D99tl ,°�N2i2G f0 '�SB_ and �_ =cuiomersi nas f10! Y2E �22f� 0:=..2,Ot?7 7�'
L►ss� ��r puposes c Ma Less> Scn=duf=_, 'L=.�S=_=_ aar_es to _;.zcv� and d=ina. �, L,ssor z Defiv�y
and �,:.-::eotar�e Cer�fl:ai=_ L-� G�_ forr at`.a::h=d h=_�i� �_ =X�iibi`. A ��?on t�s drr,um=sanc� s�i iortr in
sai� �.er:in^ate.
L. ,S�' r�rtl.s her_[� a�re� tnat th� Purha� P(�C° Oi L(1? C7LII�1°_ii artZ�� � 25 SE?iD,ui D.�..�OM' li �IC
?u�as: °;i� is r�.{d on or befon_fn� .�,dvan;� ?ayrn�nt Daf= s_t iorir� �°I�w:
?ua�ase ?rirz: ��5�.360.50
� Sa{�i aic � aGi.7D'.�7
v_ndor Di>�uns: 5;�.�e:.00
.hivan� °ayrr�n'Da'�e: Se��mh�2=. 2013
3, Upon ax�tion of lne LF.z=_e S�n°dule anc d>_fiv_�y of all documnC relanng tn:_n_� r�uired by
�..°'>'a0i, I e>a�� BGf��ii� IL Si.a��.3}' T° �°>i�° Dawn Payn�ni 5'3E.^_ 7_I�V.' 3P� �.�°SUi 30225[fa!fi
Si i?�� ��3Y t�? 731_l•'.E �i C7° �tif::i�3'>2 ?f1C.�, (G�s `.Snount Rnanw�'7 50LC1 �°�OW. �.�.e5?° B�':� u 3i
GI° �°..359 I°Ti� 3��v L.°.a>_°�5 3bI1y20�R fJ C8Y 1�_fli t�'2Vff7°llb ;�afl �ommens on L�: da� sa: iort; �
Lhe L�: S��e�ul� noNriE��;an�i7� Gie o=liv�ry ��tir_ Eouinm_n:at� laisr dai_.
!�>>��own Pavrrtian�` 5e.eo
T,a�=1n: 50.00
.r.moun� =m�n�: �a�6.�?'.5� .
4. (a) Suppl�- annd��s tha: � ;hall ��irv�r cn� auian:n: *�• �� hy th_ M6cipaieci Ralfvery
Date sa:tiarti� o�iow. � �
��reci��c�]eiiv>;y �ate: D�._:emoar?�. ?�]t3
(b) Swo6=_r he��!' aareas '�x r sn�ll d=_Inrzr fn_ auiomen"t c l�.s� nc laza; han 7�� Oufsid_
D_livery Dat� sei io�iis� o�cw �a �� such =qui�ms��t �II �..,mpiy wFi� al( s�scifi�fions an;:
r�_.au�m� o; L�s� and wic� fi: 2rms anc ,�ndltlons of any eur�z3e orda!7p�r_nase
aor�....msn:roJauno Vi�*c.
Ou�i�a Deirverv Da_: �sbr�arv ZE. 2?1=
5. I� for a�Y reason �s5oever Su�piier `aiis to �r�wiy' witr� ic aar_�nerrs sei iorfr� in snhparaaraon
ajb) c" tti� Agrse���en: by tne Ou'sioe D�iv=�� f`.a� ior any pi�-= or �auior.i=_n: (tn= 'D°hy=_
� �—� �
�eL � [D �' j: VU�f�i '` . =1'l � IVG. �`Dl' �. [i� • .
:�g
Equi�mzn:'}, artd St� Lesse_ nas no: agre>_d s revse the O!riside Defivary pat� witr� rap» t� stt���
pefsya: °_quipmzn�, thar� Suppiier h=reny a�nys as follows only for`iia D=lay.:.o �qplpment
(a) Ort tiie first'euein�s �ay 3fre;fne OuFSide D=frvery Date, Supp(ier shafl oay in Less� tne L�ss.�
Aown Paymen? for t�e D°IZy9C �quipnent plus in�rast at tnE Prime Ra� plus ons perznt (�°;�j
psr anrn�m from th°,4dvan;z Payment Dat>_tfl tne date of such aaym=nt
(6) On Rie firT business day afu th� Ou�ide Delive.ry Daie, Supofier shafl oay tfl L=ssor f�r th�
D-1ay°d �auipment tiw_ Amowf �inan�d piu= interest at the Frima P,a� plus one p�rcen! (i%)
p-r annun fror.*�ti�e Advance Paymant Date to fne date ot such paym_nt and
(c) "Frime na�" msans E�= prim=_ rets or intsrest as pubfisned �om Bme Eo fime in the Wall Sv�[
Jow�,al.
(` ther= Is mcr>_ G�an one pie;.E of Equipm=nt subjec, to the Lsase, a�d some or fhe �quipm�nt i�
delN-rod in a�rdance wit5 subpara6raph 4(�) of this Aora=ment the paymerris ow� purs�:an[w C�°
L�aae sitiall be modifiad M rafi�c: only Ehe obfi3a5ons due on fhe cquipm=nt ihat wa; oz['ivered oursuan;
� s�bpaza�aph 4{b) of �is Agr=smen*_ Th= nev.� paymenl obfiga6on 'will bz dec�rmin� 5�d on th�
amaun? flnan�d (�f tne =quipment d�irvared to the L?ssaE, and 6ased on fhe inte�sE ca� in efra�� as o`
utiA dat� o!Leaoo cAmm�ncerr�snL
E, If Su�pli°r mak°s tn_ paym°nE� o�crib°A in paragraph 5 above EuY the Geiayed Equipm�nt under
the cY�cumstances s�t in� aoove and i` Lessee has otherwise aaid and perfarmed i�_= ohfigafi�n; und.r
h� Lease S�^.,hetluie e= of such oaymen: dat_ for th� Delay� Eauiom=n!; G�en Lessee and l.�;or agr�
krtat kna Lsase Scfi°dul� ;��all t..mi�ate as o', Tn� date of such paymens by Suppfier as to tne Defayed
�qufpment onty, Less�'s ooligaBons ;hall continuF unabated for the Eauioment that was d�[iv=r�d
pursuant tc suCpa2gtaph 4(b) oP fnie Aar°smsn_
i, Su??Ifer ag2es tha;a Performan�. 5�nc will be is�u9d which names E7z Supplier as Prin7�f, the
L=esae as 061ioza and fi_ Les;�r as Addro'�ra! Obfia�, This Pertorrrance Sond will apply solsfy o fh>
terms =nd conditions of tnz ourchas� orderlpurhase agreement, includin� ralahd aquipment
soecifi�tion=_ and warran;{es, as is>-u�d by tne lassee and accaptad by the Suppfisr. The "Contracf
�ate' referred t� in th=_ ?�riarman:z 5ond snal; be the dat° of the Tnr>_s ?arty Agresmer2 E�xpt as
�cpressfy set forth n�rein, fie Ls�: Schedu!e and the tems and condi6ons of fhe purcnas�
ordedpurchase aarsement for ihe aquipment rerr�ain unchanaed and in fu�force and =frect
5. �zceot as �pressly set ro;tn hernm, tna Lsas� Scnedule and terms anc condiiions of fhe �wches=_
ordedpurch�:aareemzntfor�e Eouipmertt remain unc�anged and in fufl force and efract
IN \NfTNESS W'ric�Or`, th=_ d�ty authoriz�d aficer of th� par�ies se[ forth belovd h9r-by
e�sc�and oelivFx tnis,qar�m�n, as o`fn_ dat nrst wri[�n above.
CiN of Chula Yu� OshkosM Caoirml
(`L,esses') ("Lesso�')
�
6y- gy � ��'�-Cr,���
i rtle: r� ' , n
TiUe: SJ i�,r-��-�-��-=�--,o �" ��i-v�c�,�_
Q
Pieroe N�anuact,rrin,�
(`SuppCi°r/p
BY: /I'�,,,r.4:.i(ii'�b�.
� �
�
�t = 5�. @��-� n,
10-18