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Home My WebLink AboutContract 28061. � '� � .. .T CIiY SEGR��°��V GUE��'I�A�:i t+l�. �� i , li �astier iaxd�xempi Leasel�urchase �gr�eemeni BETWEEN: Dell Go�ernment Leasing and Finance Program I11 (the "Lessar") � 000 Sduth McCa�lir� Blvd. Superior, CO 80�27 AND: City of For� Worth (the "l.essee") 94Q0 Throckmorton Fart U1lorth, TX 761 p2 Attention: Mr. Charles Boswefl Asst. City Mngr Telephone: 817-871-61 � 1 _ _ DATE�: September 15, 2002 ARTICLE I 1.01 Defini#ions. The fallowing ferms will have the meanings IndEcated 6elaw unfess the coniext cleady requires othenuise: "Agent" means any agent For the Ragisterad Owners, if eny, to which all or a portion of Lessor's right, tille and interest in, to and undar a PropeRy Schedule and the Property under such Praperty Schedule may he essigned for the benefit of the Registered Owners of Lease Participatian Certificates in such Property Schadule. "Agreement" means this iulasEer Tax �xempt l.ease�Aurchase Agreemen#, including ali axhibifa and schedules attached hereto. "Commencement Date" is the dete when ihe term of a Prapariy Schedule and Lessee's obligation ta paq rent thereunder commences, which date shall he set forttl in the Praperty Schedule. "EVant of Nanapprapriation" is de(ined in Sectlon 6.06. ' "E�ent af DaEaulY' is defined in Seetion 13.01. "Lease Participatlon Cerfificafes" means cerfificaies evidencing a right tn recelve a share of Renfal Payments payable under a Froperly Scheduls and Purchase Price Paymen#s payable under a Property Sahec{ule and any nEher rights set forth herain with respeci to the Prope�ty under said Properiy Sohedule. "Lesse 7erm" means, with respect to a Properly Sohedule, the 4rlginal Term and alt Renswal Terms. The Lease Term for each Properiy Schedule execuled hereunder shall he se� {orth In sucit Property Schedule, as provided In Sectian 4.02. "Lessee" means Ihe entity Identified es such in the firsl paragraph hereof, and its permitied succassors and assigns. "Leasor" means the enUty identi[led as such in t�e firsi paragraph hereof, and its successors and assigns. "Original Term" means, with respect lo a P�operty Schedule, the period frnm ihe Commencement Dafe untii Ihe end of the budget year of Lessee In effecf aE the Commencament Date. "Properly" means, collectively, the property leaselpurchased pu�suant to this Agreemenl, and with respect to eaeh Property SChedule, tha praparty descrihed in such Property Schedule, and alf replecements, repairs, restorations, modifications and improvements thereot or thereta made pursuant fa Sectian e,oi or Ar€icSe IX. "Pruperty Schedule" means a Properly Schedule in the form attachecE hereto (or Property Schedule 1. Subsequent Aroperty Schedules pursuant ta this Agraement shall be numhered cansecufively, �eginning wiih Praparly Schedule 2. � "Purchasa Price" means the amount that Lessee mey, in its discretion, pay fo Lessor to purchase the Propariy under a PfoperEy Schedule, as pravided in Section 11.01 and as set forth in the properiy Schetlule. "Registered Owners" means tha registared ownars of Leesa ParticipaHon Ceriificaies In a Property Schedule as shvwn on the registration baoks maintained by the Agent. "Renewa! Terms" means the renawal terms ofi a Properiy Schedule, each having a duratian of ane year and a ierm coextens[ve with Lassee's hucEget year. "Renta[ Payments" means the rental payments payable by Lassee under Arlicle VI of this Agreement and each Praparty 5chedule, as saf foAh in each Property Schedule. "Renta[ Payments Datss" means the rental payments dates (or tha Rental Payrnents es set forth in eech Property Schedule. "5tata" means the state in which Lessee [s situated. "Vendor" means the manufacturer ar contractor oT the Property as well es the agents or dealers o( ihe manufacturer or cantraelor from whom Lessor ar Lessea purchased or is purchasing all or any portion of the Arape�ty. ARTICLE II Y.01 Prq�Jartv Schedules 5eoaraie Finanefnqs. £ach Praperty Schedule executed and delivered under this Agreement sha11 be treated as a separate flnancing, distincf from ofher Properly Schedules. Without limiting tha foregoing, upoq (he occurrence of an Event of Default or an Eveni of Nonappfopriat9an with respecl to a Properly 5chedule, Lessor shall have the rights and remedlas specified hereln with respect to the Property financed and tha Renfal Payments payable undsr such Properfy Schedule, and except as axpressty provided in Section 12.�2 below, Lessor shell have no righEs or ramedies with respecl fo Prnperry financed ar Rentel Paymenis payable under any ather Propert�+ Schedules unless an Event of �afault or Evenf of Nanapproprfation has also oaeurred under such a�her Property ScheduEes, ARTICLE I11 3.07 Covena qts vf Lessee. As of the Commencemenf �ate [or each Ptoperly Schedule executed and delivered heraunder, Less�e shali 6e deemed lo eepresent, eovenank and uvarrant for tha beneflt oF Lessor, any Agent, and eny Registered awners, es follows: {a) Lesses is a pvblle body carpnrate and palitic duly organized and exisling under 1he constiluflon and laws o( the State wlth full power end authoriry to enter into this qgreement and the Property Sohedule and tha transaclions contempfated ihereby and to perforrn all of iis obllgattpns Rhereunder. (b} Lessee wlll do or cause to be done all things necessary io preserve and keep In full force and effect its exisience as a body corporate and poliHc. To the extent Lessee should merge wfth another enGty undar the laws of the Sfate, Lessee agreas that as a cnndition ta such merger It will requfre that Ihe ramaining or resulting entity shall be asslg�ed Lessee's rights and shall assume Lessee's obllgat1ons heraunder. (c} Lessee hes been duly aulhorized tn execute and dali�er ihis Agreement and tha Properly Schedule by proper ectian by its governing bady, or 6y othar appropriate qf�clal approval, and all requlraments have been met and pracedures have occurred in arrler to ensure the �alidity and enforcaability of this AgreemenE and fhe Properly Schecfule, and Lessee has tomplfed with such public bidding requirements aS m�Y be anpllcable ta ihis AAreement and the Property Schedule and tha acqulsition by Lessea oF the Property thereunder. On or hefore the Commenc*me�it��a« i�, t�id ��,.�,1. �.;t:�s.le, Lessee shall cause to be execvtecf an op3nlon af cpunsel in substantialiy the (orm atlached to the form of the PfopBRy+S�1It�F�jp�pa��Frx�ib� �� . � � � n�� .+-�_.,.nw�n..w� —. .� . . Form No: 96-20D.298-kmf I "�" � �i :' • . � 1�� (d) �uring thg Lease Term fof the Praperty $chedule, the Property thereunder will pe�fiorm and will hs used by Lessee only for the purpose of performing essential governmental uses and puhlic functions wlthin fhe permissihle scope of Lessee's aulhority. (e) Lessee wlll provide Lessar with current flnancial statements, budgets and proof of appropriailan for Ehe ensuing budget year and other (Inancial infarmation relating to ihe ability of Lessea to conflnue Ihis Agreement and tha Property Schedu�e in such (arm end cantaining such information es may be requasled by Lessor. (fJ Lessee wlll comply wllh all applicahle provislons oF the Intefnaf Revenue Code of i986, as amended (the "Code"), including Sections 703 and 148 thereof, and tha regu3ations af Ihe Treasury Department ti�ereunder, from time to time proposed or In effaet, In ordar to meinlain the excludability from gross incoma for federel incame tax purposes of the interest component oE Renlal Payments under the Praparty Scheriule and wiq nol use or permit the use oF the propatiy in such a manner as to cause a Praperty Schedule to 6e a"private activity 6ond" under Sectian 1A1(aj of the Code. Lessee covenanls and agreea Eha{ �f �yill use tMe proceeds of the Property Schedule as soon as practicable and wiih all reasanahle dispatcil far the purposa for which Ihe Proparly Schedule has heen eniered into, and that no pari of the procaeds of the Yroperty 5chedafe shall be invested in a�y secufiUes, af�ligations or other In�estmenfs exeepC for the temporary period pending suth use nar used, at any time, directly of indirectly, ln a manner whfch, 3f such use had �een reasanably anticipated on the data of issuanee of the Agreemenl, would have causeQ any portion of the Praperiy Schedule ta be or becoma "ar6ltrage bonds" wlthin the meaning of Seotion iO3(b}(2} or Section 148 of tha Cade and ihe regulations of the Treasury Dapartment thereunder proposed ar in effect at the time o# such use and appllcable to obllgatians Issued on the date of issuence af the pmperty Schadule. (g} The execution, delivery and performance of this Agreement and tha Property Schedule and compliance with the provisions hereof end thereoF by Lessae daes not conflict wiih or result in a violation or hreach or canstitute a default under, any resolvtion, 6ond, agreament, Indenture, martgage, note, lease or othsr instrumanl ta which Lessee is a party or by whieh ii is bound by any law or any rule, regulalion, order or decree af any aourt, governmental agency or 6ody ha�ing furisd3clton over Lessee or eny af its act3viUes or properfies resulting in iite ereation ar imposition oF any lien, charge or olher seourily Inierest or encumbrance of any nature whatsaever upon any property or assets of Lessee or lo which ll is subJect. {h) Lessee's exacl legal name is as set torth on ihe [Irst paga Qf this Agreement. Lessee will not ohange Its legal name in eny respacl wilhnut giving thirty (30) days prlar nofice to Lesso�. ARTICLE IV 4A1 Laasa of Pronertv. On the Gommencerrlent Oaie of each Propar#y Schedule executed hereunder, Lessor will he deemad to demise, lease and let to Lessee, artd Lessee will be deemed to reni, lease and hire from Lessor, Ihe Properly dascribed in such Praperty SChedule, in accordance with this Agreement and suah Property Schedule, tor the Lease Term sel forth In such Property Schedule. 4.02 Lease Term. The term nf eaeh Property Schedule shall commence on the Commencement Data set forth therein and shall terminate upnn payment of the final Rantel Payment set forth in sueh Property Schedule and the exercise of Ihe Purchase Optlon described in Sectian 11.01, unless terminated saoner pursuant tn lhis Agreement or ihe Properiy Sc�redule. 4.03 Delive�. Installatfon and Acceotance of Pronertv. Lessea shail order the ProperEy, shali causa ihe Property to ba delivered and Instailed af the locatinns speeified in ihe app icabEe Properfy Schedule and shall pay a31 taxes, delivery costs and instaAation casts, ff any, In cannection therewith. To fhe axtent fuods are deposited under an escrow agreement or trust agreement for the acquisiflon oF Ehe Property, such funds shall be disbursed as provided thereEn. When the Praperiy dascribed in such Properiy 5chedule is delivered, installed and aecepted as to Lesses's specificaGons, Lessee shall immediately accept the property end evidence safd accepiance by execufing ane! delivering to Lessor ihe Acceptance Certi[Icate su6stantially in the Fvrm attached ia tha Praperly Schedule. ARTICLE V 5,01 Enio�ment of Prooarty. Lessae shall during the Lease 7erm peaceahly and quielly heve, hold and enjoy the Proparty, without sulE, trouble or hindrance fieom Lessor, except as expressly sei forth in this Agreement. Na ReglsEered Owner shall fnterfere wlfh such qufet use and enjayment during the Lease Term so long as Lessee is nat in defauft under the subject Property Schedule, bA2 Locatlon: It�saectlon. The Property wilf be Iniilally located or hased at [ha locaiion speolFied in the applicable Property Schedule. Lessar sha11 have tE�e right et ail reasonahle times dunng businass houfs to enief Into antl upon the propel�ty of Lessee far tha purpase of inspecling the Property. ARTICLE VI 6.01 Rental PaYments to Constltute a Gyrrent Exoeqse nf Lesaea. Lessar and Lessea undersfand and intend that the o6figaiinn oF Lessee to pay Renial Paymants hereunder shall conslitufe a current expensa of Lessee and shall not in any way 6a consfrued ta be a deht of Lessee in contravantion of any applicab[e constitutional, siatutary or charter limitation or requirement conceming Ihe crealion of inde6tedness by Lessae, nar shall anything cantainad 8erein consiitute a pledge of the Faith and credif ar taxing power of Lessee. Upan the approprlation of Rentel Paymenfs for a fiscal yaar, the Rental Payments Far safd fiscaf year, and oniy the Ranlal Payments (or said currenl fiscal year, shall ba a 6lnding ol>ligation af Lessee; provided that sueh ohligatfon shaU not include a p[edge of ihe kaxing power of Lessee, 6.02 Payment of Rental Pav►►�ents. Lessea shal! promptly pay 12ental Payments under aach Property Schedule, excluslvely (rom IegaEEy availabfe Funds, in lawful maney af the United 5tates of Amedca, ta Lessar In such amaunts and on such dates as descrihed in Ihs a�plicable Yraperty Schedule, at Lessor's address set forth on tfie first page of this Agreement, untess Lesso� instNcis Lessee oEherwise, Lessee sitall pay Lessor a eharge on any delinquant Renlnl Payments under a Property 5chedule in an amoun# su�cient to covef all additional wsis and expenses incurred by Lessor and Agen! from such delinquent Rental Paymenl. In addition, Lessee shall pay a late charge of fiva cents per dollar ar the highast amount permitEed I�y applicable law, whichevar is lower, on all delinquenl Rental payments. 8.03 Interast Compone�t A portion of each Renfal Payment due under each Property Schedule is pald as, and represen�s payment nf, Interest, and each Property Schedula hereunder shall set fohh the interest component (or method of compuiation thereo� nf each Rental Payment thereunder dur3ng the Leasa Term, 6.04 Renx J Pavmenis j.o be Un{�(�pd' '�o�J al. SUBJECT TO SECTION 8.06, THE OBLIGA710NS OF LESSEE Tp PAY TNE RENTAL PAYMENTS �llE UNOER Th[E PiiQFERTY SC�EOULE$ ANp 7Q I��RF��M AND OBSERWE THE OTktEkZ COVENANTS AiJD AGREEMENTS CONTAIlJED HER�IN SHRiL BE ABSOLUTE ANp UNCQN�ITIONAL IN ALL EVENTS WITHOi1T ABATEMENT, PfMINU7'IQN, O��UCTION, SET-OFF OR DEFENS�, FOR ANY REASON, INCLUpING WITH4UT LiMITATION, ANY OEFECTS, MALFGNCTIONS, BREAKpOWNS pR INFIRMITIES IN THE PftOPERTY OR ANY ACCIDENT, CONDEMiVATION OI� UNFORESEEN CIRCUMSTANCES. TFi15 ?ROVISION SNALL NDT LIMIT LESSEE'S RIGHTS OR ACTiONS AGAINSTANY VEN�OR AS RROVI�ED Ih! SEC710N 10.02. 6.a5 Cantinuatian of L��gg�j� Le�geee. Lessee intends to continue all Property 5chedules entered inio pursuant to this Agreemenl and to pay the Rental Payments therevnder. Lessee reasona6fy �Oelieves ihat legally available funds in an amouni sufficlenl to make all ftenial Payments during the term o( af1 Property Schedulss cen be o�tained. Lessee agrees that its siaff will provlde during the budgeting process for each 6udget year to the goveming hody of Lassee nolification of any ftental payments due under the Prop�rty Schedules during the follav�ing budget year. Notwithstanding ihls covenanl, if Lessee fails to appropriate the Rental Payments for a Property Schedule pursuant to 5ection 6.46, such F`roperiy Schedule shall terminate. Although Lessea has made this covenant, in Fhe event thal it iaifs to provide suth noiice, nn ramedy Is pravided and Lessee shall nol he liahle for any damages for Its failure lo so comply. 6.06 Non-Annron ia I'on. I[ sufficient funds ai'e nat eppropfiated to ma&e Rentai Paymenls required under a Property SaheduEe, such Properiy Schedufe shall terrn[nate and Lessee s�a�l not be obligated to make Rental Payments uoder said Property Schedule 6eyo�d ihe then current flscal yeaT tor which Funds have been appropriated, Upon the accurrence of such nonappropdation (an "EYent of Nanappropriation") Lessee shall, no later than the end of the fiscal year for which tiental Payments have been appropriated, dellver possession of the Prapertyr under seid Praperty Schedula ta Lessor. If Lessee fails to deliver possession of Ihe Properly ta tessor upan tertninatlon of said Property Scheduae 6y ressan of an Event oi Nonappropriation, Ehe te�minatian shall neveriheless 6e effactiv� but Lessee shall be responslhle for Iha payment of damages in en amvunt equal !o the partion of Rental Payments thereaker coming due that is attributahle to the num6er of days after Ihe termination during which the Lessee fails lo deEiver possesslon and for any alher loss auffared by Lessor as a resWt of Lessee's failure Eo deliver possession �+. r�,zT�in-� 'c add;itcsF_ _�__�a� ��.a� } qy wriUen instructions ta the Agant or to any ather escraw agent who Is holding procaeds af the Properiy Schedula, instruct the Agent c?� E=�:^�w a er�`n �� =»� s-.,ch praceads and any earnings therenn to l.essor, such sums lo he Credited fo Lessee's oh]igetions und�r iha Property Schedule and tMl� q�r� 3�j' f 14,�,�sq{�(��I yA��i�+ �I�e�or ,� �..�� . � �� ■ ��.� �� Farm No: 96-200.296-km£ � ; I' ' ' ,2 - a�'�', � in wdting within seven (7) days after tire fallure af the Lassee fo appropriete funds suHicient for the payment of ihe Rental Peymenis, hut tallura to pravide such noYice shall not operate to exfend fhe Lease 7erm o� result In any liability to Lessae. B,Q7 Def�asanca of Rental Pavments. Gessee mey at any time Irrevocably deposit In esc�aw with a defeasance escrow agent for the purpose oi paying a�l of tha principal component and interest companeni accruing under s Properry 5chedule, a sum Qf cash and non-callable securities consisling of direct ob{igations of, or obl[gatfons the prin�i�al of and Inl�r�st �n which are uncQndikianelly guarantaed by, the Uni�ed States of America or any agency or instrumeniality therenf, in such aggregate amount, hearing Inierest at such rates and maturing on such detes �a shall be required to provide funds sufficient for this purpose. Upon such defeasance, all right, fitle and Interest of Lessn� in the Property under said Propeny Schedule shall terminate, Lessee shall cause such investment to comply with Ihe requirements bf federal taX law so that the exclusion from gioss Income af tlte interest component of Rental Paymenis on said Proparty Schadufe is nat adversely affected, ARTICLE VII 7.9'i �kle to fhe p/q��rtv. Upon acceptance of the Property by LessBe and unless otherwise requlred by the laws of the State, title to the Property shall vest in Lessee, sub ect to Lessor's Iniarests undar the applicahle Property Schedule and this Agreament. 7.fl2 Personal prooar[v. The Properly Is and wlll remaln personal property and wlll not he deemed to be affixed to or a part af the real estaie an which it may be slivated, notwithstanding that ihe Property or aay part thareof may 6e or hareaiter become in ahy manner physically affixed nr attechad Eo real esEate or any 6uilding therean. If requested by Lessor, Lessea will, at Lessee`s expense, turnish a waiver oF any interest In the Property from eny party ha�ing en inierast In any such real aslate or quilding. 7.U3 Securitv Mterest. To secure the performance of aq of Lessee`s obligations under this Agreement, including without limitation a!I Property Schedulas now exlsting ara hereafter execulad, l.essea grants to Lessor, for tha benefit of Lessor and Its successors and assigns, a security interest constituting a first lien on Lassee's Interesl in all of the I'roparry, whether now owned or hereafter acqufred, all additions, atlaohmenis, alierations and accessians ta the Property, all substilutlnns and repfacements for fhe Pfoperty, and o� any procseds of any of the forego€ng, inckuding 3nsuranca proCeads. Lessee shall execute any addltlonal documents, including finanaing stafemenfs, afffdavils, notices and simifaf insfrumenfs, in form and su6stancs seNsfactory ta Lessor, which Lessar deems necessary or appropfiate to esfa6lish, mainiain and perFeCt a secUriiy interest in tha Property in fa�or of Lessor and ils successors and assigns. L�.ssee hereby authorizes Lessor to file all financing statements which Lessor deems necessary or appropriate to esta6lish, rnainEaln and perfect such security Interest. 7.Q4 Suhstftutlon. Lessee may subsfitute far all or any portion of lhe Property undar a Properiy Schedule personaf property of approxfmately equal or greafer market value and with an equal nr greater useful liFe. In the event oF any such su6sUtution, Lessee shall deliver to Lessor a cerlificatian Ihat the personal property proposed to he substiluted has approximately equal ar greater market value and an equal or greater use(ul life as the portinn of tha Properly baing substitutad far, together with en opinion of counsal acceptahle to Lessor to tha effeat that the praposed substituiion will nnt advarsaly affect the exemptian oi the interesE components of Renlal Payments under ihe Property SchadWe fram (ederal inaome taxatian. l.essea shell he responsible (or ell costs end expanses of Lessor, including cnunsel fees, for any such substituiion. Lessae shall cause all financing statements, fl�cture fiiings, certificatas of tltle, affidavits, notices a�d similar insirtfinents, tn be made or filed In a tlmEly manner to secure and parfect tha security interest of Lessor in �he suhstituted property. ARTICLE Vlll 8.01 Maintenance of Propertv bv Lessae. Lessee shall keep and mafntain ttse Property in good aondition and working order and in compliance with the manufacturer`s specifications, shall use, operate and maintain the Properly in conformiiy wilh all laws and regulations conceming th� Property's ownership, passession, use and mairtienance, and shall keep the ProperEy fres and clear of ali I[ens and claims, other than those created by this Agreemarti. Lessee shafl hava sole responsibility to maintain and repair the Properly. Should Lessee fail to maintaEn, presarve and keep the Property in gaad repalr and working o�dar and in accordance w3th manufactufer's specificaiians, and if Paquesfed by Leasor, Lessee will ertter into mainlenance contracis for tf�e Praperty in form approved by Lessor and with approved providers, $,p2 Liens. Taxes�1 Othsr Governmental Charqes and lltifitv Gharqes. Lessee shall keep the Property Free af ad leuies, liens and encumbrances, except far the interest of Lessor under this Agreement. i'iie parties to this Agreement contemplate thal the Property wlll be usecE for a govemmental or propfietary purpase of Lessee and, thefefore, that fhe Praperiy wip be exempt fmm all p�aperty la�ces. The Rental Payments payable by Lessae under this Agreement end tha ?ropefty Schedufes hereurtder have heen astabllsiled la re#lacl the savings resuHing from tBis exemption from taxaiion. Lessae will take auch actions necessary under applicable law to ohtain said exemption. Neverlhelass, If the use, possesslon or acquisition of Ehe Praparty is determined to be subject to taxe4pn o� later becomes suhjec! to sueh taxes, Lessee shall pay when due all taxes and gavammerttal charges lawfully assessed or leviad agalnst or with respect to th9 Praperty. Lessee shall pay all gas, vrater, steam, electriclty, heat, power, telephone, utility and othe� charges incurred in ffle opareiion, maintenance, use, occupancy and upkeep vf the Property. Lessee shall pay such taxes or charges as the same may baeame due; provided thei, wtih respect to any such taxes or charges that may lewfully be paid in Insfallments over a periad pf years, Lassee shall he obligated to pay oniy such i�stallmenis ss accrue during the ihen turrent fiscal year af tfle Lease Te�rt1 fof sueh Proparty. B.p3 lnsulance. At its own expensa, Lessae shall ma3ntain (a) Casuslty insurance insuring the Property against loss or damage by fire and all other risks coveTed by the standard e�Aended coverage endofsement then In use in the Sta#e and any other risks reasonably raq�ired 6y Lessor in an amounl equai io at least the ouistanding pr(ncipal component of Renta) Payments, and {b) liabiliiy insurance that pratecls Lessor from Iia�illty in all events in an amount r@asonably acaeptahle to Lessor, and (c) workers compensation insurence covering al[ employeas working on, in, near or ahout the Property; provided that Lessee may self-Insure agai�st all such risks. All insurance proceeds from casualty losses shall be payabfe as hereinafter provided in Ihls Agreement. All such insurance shall be with insurers lhat are autliarized to issue such insurance in Ihe 5tate. All such IlabilRy insurance shaf[ name Lessor as an arldilional insured. All suclt casualty insurance shall eantain a provisian meking any losses peya6le to Lessor and Lassee as their respeciive interests may appear. All such insurance shall contain a pravision ta Ihe effect that s�ch insurance shall not be cancelad or modlfied without fif&t glving writlen notics thareof to Lessar and Lessee al least thirty {30} days in ad�ance of auch cancellat�on or modification. Such changes shall not hecome effeclive wilhout Lessor's prior wrlttan wnsent. Lessee shall furnish m Lessor, on or before iha Gammanceman# Date fnr each Properly Schedula, and thereafter st Lessar's request, ceAifiaatas evidancing such coverage, ar, If Lassee self-Insures, a writlan description of its self-insurance program together wilh a certifiaatlnn from Lessee's risk manager or Insurence agent or cnnsultanl to Ehe effecf ihat Lessee's self-ihsurance progrem provides adequate coverage agalnst the rlsks listed a�ove. BA4 d cea. ln the e�ent Lessse shall fall ta efiher mefntaih the Insurante requlred by this Agreement or keep iha Property in good repair and working order, Lessor may, but shaH be under no obligation to, purchase the requirad insuranae and pay tha cosi nf the premiurna #hereoi or maintain and repair the Property end pay Iha cost Ihereof. All amaunts so advanced hy Lessor shal[ constifute additinnal rent for tha Lease 7erm for tne Property Schadule tar which tha Proparty is under and shall be due and payable nn G�e next RentaE Payment Oate and Lessee co�enants and agrees to pay such amounts sa advanced hy Lessor with interest thereon from the date such emounts are advanced untH paid at the rete of 12°h per annum or the maximum amounl permitted by law, wh3chever is less. ARTICLE IX 9.01 Da ape ar Destructlon. IF (aj the Properly under a Proparty Schedule or any portion thereo( is destroyed, in whnle or in part, ar Is damaged 6y fira or oiher cesualty, or (b�11e ta, ar tha temporary use af, ihe Property under a Property 5chedule or any part thereof shall he taken under the exercise or threat of the pawer of eminant domain by any governmental body or 6y any persnn, f3rrn or corporatlon acling pursuant to go+iernmental authority, Lessof and Lessee wil{ cause the Net Ptneeeds (ss heralnaEter de�ned} of any irtsurance clairrl, condemnatlun award or saEe nnder threal af condemnation to be applied to the prompt replacement, repalr, restoration, modification or impravement af ihe Property, unless l,essee s�all have exercfsed its right to defease ihe Property Schedule as provlded herein, ar unless Lessee shall have axerclsed Its oplion to purchase Lessor's interest in the A�aperty if the Property Schedule so pravides, Any halance of the Net Proceeds remaining efter such work has been compleied sha[I be paid ta Lessee. For purposes of Section 8.D3 and lhis Article IX, the term "Nat Praceads" shall maan the arriount remalning from the gross prooeeds pf any Insurance delm, condemnation award or sale under threaf of condemnation afler dedvciing all expenses, including atforneys' fees, incurrad in the coJlselion therenf. 9.d2 Insuffielancv of Me! proceeds. If the Met Proceeds ere insufficient to pay in full the cost of any repalr, resEoratlon, madiFicat9an ar improdement referred tn in Sectlon 9.01, Lessee shall {a) comple#e such replacement, repair, restoration, modification or improvement and pay any costs thereo( in excess oF ihe amaunt oF the Nel Proceeds and, If Lessse shall mske any payments pursuant ta this Sectlan, Lessee shall not be eniitled to sny reimhursement therefor (rom Lesso� nor shall Lessee be enfitled to any diminuiion af the amounts payable under Sectfon 6.62, or (b) deFease the Property 5chedule pursuant to Section 6.Q7, or (c) exercise i!s option to purchasa Lesso�'s Interest In the Property pursuant ta the optianal purchase pravisions of the Praperty 5chedule, if any. The amount nf the Net Proceeds, If any, remaining aRer completing such repair, restorakion, modificafion or Improvemenl or affer such defeasance of pufchase may 6e refained by Lessee. FOrm I+io: 96-260.298-krrtf w � • ' � �,�;, ■ � �� -� � � �� , '"� -�- � �C� � '� � ARTICLE X 10.01 oisclaimar at WarrantlQs, L�S50R MAKES NO {AN� SHALL NOT 6E pEEME� 70 HAV� MAqE ANYf WARRANTIES, EXPRESS OR IMPLIE�, AS TO ANY MA7TER WHATS0�1/ER, INCLUDING, Wli"HaUT LIMITATION, 1'HE dE51GiV, 6PERA710N QR CONDITIQN OF, OR THE QUAtITY OF THE MATERkAL, ELIUIPMENT OR WORKI'JiANSHIF' iN, TH�C PROPERTY, ITS MEftCHAN7ABILI7Y OR I7S FITN�SS FOR ANY PART�CULAR PURPOSE, THE STATE OF TITLE 7H�RETO OR ANY COMPONEN7 THEFt�OF, TN� A�SEFICE OF LAT�PIT OR {3TH�ft �EF�CTS (4rVFi�THEfi QR NOT DISCOVERkBLE}, AfJD LESSOR HEREBY bE5CLAiMS TH� SAME; IT B�[NG IINC]ERSTOOp 7HAT 7HE pROPERTY 1S LEASED TO L�SSEE "AS 1S" ON THE QATE OF THIS AGREEMENT OR THE �ATE OF DELIV�RY, WHICH�V�ft 15 LqTER, ANp ALL SUCH RISKS, IF AhlY, ARE TO BE BOftNE BY l.E55EE. Lessee acknowledgas ihat it has made {or will make) tha selectian of the Property from Ihe Vendor 6asad on its own judgment and exprassly d€sclaims any reliance upvn any statemenis or representaYions made by Lessor. Lessee undefslands and Hgrees that (a) neither the Vendor nor any sales representative or other agent of Vendor, is (i) an agent of Lessnr, or (li) authnrized to make nr alter any term or canditlon of this Agreament, and {h) no such waiver ar altaration shall vary the terms of this Agreement unless expressly set iorih herain. In na event shall Lessar 6e Iiable for any incidental, indirect, special or consepuential damage in conneotion with or arieing out of th€s Agreement, the property Schedules, or tha, existence, furnishing, functianing ar use af any Ifem, product or service provided tor In tiiis Agreement or the praperty 5ohadules. 10.02 Vendor's Warrenfies. Lessor hereby Irrevocably assigns to Lessee all rights that Lessor may have to assert (rom time to time whetever clafms and rights (Including without (lmitation warranties) related to the Praperty against the Vendor. Lessee's sole remedy for the hreach of such warranty, Indemnificalion or representation shall 6a agalnst the Vendor of the Property, and nnt against Lessor, nor shall such matter have any ef(act �vhalsoever on the righis end o6ligat[ons of Lessor with resped to this Agreement, including the right to receive fu11 and t[mely paymenls hereunder. Lessea expressly acknowledges that Lessor makas, and has made, na representatiorrs or waRanfies what&oever as to the exislence or the avallahility of such warranHes of the Vendor of the Property. 10.0� Use of the Prooert�. Lessea wi11 not insiall, use, operate or mainfain ihe Properly improperly, carelessly, in violatlon of any applicable law ar In a menner contrary ta that contamplsted by this Agreement and the applicahle Proparly Schedule. Lessea shell pravide all permits and Ilcensas, if any, necessary tor the installation and aperation nf the Property, In addition, Lessee agrees ta compEy In all respects wffh all kaws ot the Jurisdictfon in which its operailnns invoEving any item of Praperty mey extend and any Iegislative, executive, administrafive or judiclel body exercising any pawer orjurisdiction over tha items of ihe Property; pravided that Lessea may caniest in gaod faith Ihe validity or application of any such law or rule in any reasonabfe manner that does not, In the opinion of Lessor, adversely affect the interest ot Lessor in and to the Property ar ils Interest or righls under thls Agreement. Lessee shail promptly notify Lessor In writing of any pending or threatened inves#igafion, inqulry, elalm ar aclion hy any gavarnmental authorfiy which could adversely affect this Agreement, any Prnperty Schedule or tha Property theraunder. 10.04 ModlticeHons. Subject lo tha provlslons af thls Sectlon, �essee sha11 have the right, at its own expense, to make alieratinns, additions, madlfications or Improvements to the Property. All such alteralions, additinns, modifications and lmpravemenis shaEl thereafter comprise paA of the Property and shall he subjed to the provisions of thls Agreement. Such alterallons, addiilons, modiflca6ons and Improvements shail noE in eny way damage ihe Property, substantially alier its nature ar causa ii lo be used for purposes other than those authorized undar the provisions of state and federal law; and the Praperly, on completion af any alterations, additions, modifications or 1mpCovemenfs made pursuanl to this 5ecfion, shall be of e value whlch Is equal to or greater than the val�e af the Property Immediately prior to fhe making af such alteratlons, addilions, modificatlons and Improvaments, Lessee shall, at Its o�vn expense, make such aHerations, additinns, madliicatians and impra�ements fa tha Property as may be reaufred from tlme ta tlme hy appllcable law or hy eny gavernmental authority. ARTfCLE XI 11.U1 Oatlon to Purcfiase. Lessee si�all heve the apiion to purchase Lessor's antire interest in all of Ehe Property sctbJect to a Property Schedule and to terminate any restrictions herein an fhe Property under such Propefty Schedule on the last day af the Lease Term for a Property Schadu4e, if ihe Property Schedule is still in effect on such day, upan payment in full of the Rental Payments due lhereunder plus paymant of One (i) Dollar to Lessac Lessee shall giue written notice to Lassor nf its intent ia purchase Leasors lnterest in tha Prop�rly at least sixty (B�� days prior fo Ihe lasi day of the Lease Term Fnr appllcahEB Praperly Schedule. Upon exercise af the purchase option as sei forth in this Secllon 14.01 and paymenl of the purchase price vnder the applicable Properly Schedule, and performanes by Lassee of all other terms, condiYions and provislons hereo{, l.essdr shall dellver to Lessea all such documents and insVuments es Lessea may reasonably requ3ra to evidence ihe transfer, wlthout warraniy by or racourse to Lessor, of a!I of L.essor's right, title and Inierest in and to iha Proparty subjecf io sucfi P�oparty Schedule to l.essee. 11.02 Ontion ta Preoa� Lessee shall hava tha aptfon to prepay the Renfal Paymen4s due under a Property Schedula, but only if the Properly 5chadule so provides, and on the terms set farkh in {he Property Schedule. ARTICLE Xli 12.01 Ass[anment 6v Lessor. Lessor's right, Gtle and tnterest in, fa and under each Property Schedule and the Properly under such Property Schedule may be assigned and reassignad in whole or in part to one or more ass€gnees or subassignees by Lessor snd, to the e�ent oF their interest, by any Re9lsiared Owner, without the necessity af ohtaining ihe conseni of Lessae; provided Ehat {i} any assignment, atherthan an assignmeni to ot by a Registered Owner, shell not 6e effeciiva untll Lessee has recaived writlen noi[ce, aigned by fhe assignor, of the name, address and tax idenllfication number of the assignee, and {ii� any assignmenl to or by e Reglstered Owner shall not be effeciive untfl it is registered on the regislratinn hooks kept hy the /{gent. Lessee shell rataln all suth notices as a reglster of all ass[gn�es (other than Regiatered Owners) and shal� make all payments In the essignee or assignees dasignated in such regisler or, in the case of Registetad Owners, to the Ageni, fn ihe evenl that Lessor's Intarest in a Property Schedule and the Property ihereunder is asaigned to the Ageni, Lease Particlpallan Certificates In Ihat Yropefty Scheclule may he executed and delivered by the Agent to Reglstered Owners. Lessee agrees lo execute all documants, including nofices of asslgnment and chaital mortgages or �nancing stafements ihaE may be reaeonaqly requesfed by Lessor or eny assignea to pratect its interests in this Agreament and the Property Scfiedules. 12.02 Preaa Sehedules Senarate FlnancEnaa. Assignees of ths Lessor's rights [n nne Property Schsdula sha11 have no righis in any other property Schedule unEess such rigftts�ave haen separately assigned, Lessor may cvllectil+ely assign iwo oC more Property Scltedules wlth the sama Cammencement Date to the Agent far the purpose of csusing the execuUon and delivery af Lease Partfaipatian Certificates in fhe Property 5chedules with the same Commencement Data, Such asslgnment sha!] accur on such Cnmmancement �ate and upon such asstgnment all Property Scitedulea so assigned shall be traated as a single financing and a single Property Schedule wifh respact to rights and remedias upon Ihe oecurrence of an Event of C1eTault or an Event af Nanappropriation under thls Agreement. Registered �wnars rlghls with respect io the Property Schedules shall be determined as provlded in 1he escrow agreement or trust agraement relating to such l.ease Partic€paGon Certificates. PROPER7Y MAY BEASSI��N�iSpSUBL�kSED dR ENCIJMBE ED BY LESS�� FOf3 ANY E SDNI WITHO TTHE PRIOR WRITT�N CONS NT OF LESSaR IN THE 12.04 Release end lndemnitir,��ion Gonenants. To tMe extenE permilfed by applicable law, Lessee shall indemnify, protect, hold harmfess, sava and keep harmless lessor from and egainst any and all liabilily, opligation, loss, claim and damage whatsoever, regardlass of ceuse thereof, and all expensas In connection therewith, including, without limiiation, cnunsei tees and expenses, penaltles and interast (collectivefy, "Lasses") arising ouk af or resuEting firom the entering into this Agreement, any Property Schedules hereunder, tise awnersh(p of any Item of the Rrc�perly, the loss of federal tax exempGan oF the interest an any af the Property Schedules, the ordering, acquisition, use, operation, condition, purchase, dellvery, rejection, stvrage or return oF any itam af the Property or any accidenf in connecilon with khe oparatian, use, candiiion, possession, storege or return af eny item af fhe Proparty resufting in damage to property or inJury io nr daath io any person; pravided, however, ihal Lessee shall noi be requlred to indemnifyr L�ssor far Losses ar€sing out of or resulting from Lessors own wi1lFul or neglfgent wnduot, or for l.osses arising out of or resuHing From Lassor' preparatlon of disclo5ure matqri�l relating lo Lease Fariicipatfan Certificades {other than diatiosure material provided to Lessor by Lessea). The indemnificalion erisfng under this Secfion shall cantlnue in full force and eifeet noiwithstanding the (ull payment af ail obligations under Ehls Agreement, or the appllcehle property 5chedule, ar the termination of the Leasa Term for such Pfoperty Schedule far any reason. ARTICLE XIII 93.01 Events of Defaul efi ed. Any af Ihe folla�ving shall constitute an "E�ent of Oe[auH" under a Praperty Schedule: {a) Fai[ure by Lessee to pay any Rental Payment under fha Properiy Schedule or other payment required ta he pp�� wi�h resnett Ihel'eto et the ttme specified iherein; ! � � �� ■� ui 'TZH �„� � � n, �'.,.' i i� r Fnmt No: 96-200.298-krnf - 4 - �I � a (h} Failure by Lessee to obserue end perform any covenant, condiElon or agreement on its part io 6e observed ar performed with raspect to ki�e Property 5chedale, other than es raferred lo in subparegraph (a) above, tor a periad of thirty (30) days after written nolice speei(ying such failure end requasting that it 6e r�mediad Is given to Lessee hy Lassor, unkess Lessar shall agree in wriEing to an extension of such Elme prior to its explratlon; provlded that, If the failura stated in tha nnilca cannoi he correcfed within Ehs applica6le periad, Lessor will not unreasonably wi[hhold its cansant io an exEension o[ such fime if corrective action is irtsiituted by Lessee within the appliaable period and diligently pursued until the defautt is correc#ed; (c) Any statement, representation or warranty made by l.essee In or pursuanE tv the Property Schedule or its executfon, delivery or per(ormance shall prove to have 6een false, incorrect, misleading of bfeached in any material respeat on the date when made; (dy Lessee shall (i) apply for ar consenk to the appo3ntment of a receiaar, lrustee, custodlan or liquldator of Lessea, or of all or a substantiat paA of ihe ass�ts of Lessea, (ii} be unable, fall or admit in writing its inability generally to pay Its debts as they became due, (iii) meke a general assignmenl for the hana�t of craditors, (v} heva an arder for relief entered egalnst It under applicable faderal bankrupfcy iaw, or (v) file a voluntary petitlon in bankruptcy or a petitlon or an answar seeking reorganizatinn ar an arrangement with credfiors or taking advan#age of any Insolvency law or any enswer admitiing the maierial allegeUons of a petiilon filed against Lessee in any bankruptey, reorganization nr insolvency praoeeding; or (e} An order, jutlgmartt ar dacree shall he anterad by any court af competent Jurisdiciion, approving a petillon ar appolnting a receiver, trustee, custodian or liquidalor of Lessee or of all or a substantial pari oF ihe assels o( Lessee, In aach case without its application, appraval or consent, and such order, judgment ar decrae ahali continue unstayed and in ef#ect for any period of 6fl consacutiva days. The foregoing provlsions ot Sectlan 13.01 are sub]eck lo ihe foElowing IimiEation, if by reasan of force ma�eure Lessee is unable in whole vr In part la perfomt its agreemenls under this Agreement and ihe Property Schedule (ather than the obUgaiians on the pad o( Lessee containad in AHio1e VI hereo� Lessee shall nol be in dafauit during the continuance of such inahility. The term " orce maieure" as used herein shall mean Ihe iollawing: acts of God; strikes, lockouts or other indu5trial disturbances; acts ot puhlie enemiea; orders or restraints of any kind oF the gavernment of the United 5tstes ar of the Stale ar any oF their dapartments, agencies or ofFicials, or any eivil or milktary auEhorify; insurrectipns, riois, landslides, earthquakes, fires, sEorms, droughis, floods, exploslons, breakage or accident tn machinary, fransmission pipes or aanals; or any other cause or event not reasonably wifhin the control of Lassea. 'i3.42 Remedles on Defauk. Whenevef any Event af Oefault exists wilh respact fo a Proparty SchedWe, Lessor shall have the right, at Its sale option without any Furlher demand ar notice, to take one or any comb3nation of Ihe following remedial steps: {a) Withaut lerminaiing Ihe Properly Schedule, and by wriften notice to Lessee, Lessor may dacEare all Rental Payments and other amounls payable by Lassee thereunder to the end oF the then-current budgei year vf Lessee to be due, I�duding wiihout limitation delinquent Ftental Paymenis under tha Property 5chadule from prior budget yeers, and such amouMs shall thereafter bear Interesi at the rate of 12% per annum at t�te maximum rete permiited by applica6ls law, whichever is less; (b) Lessar may terminete the praperty Schedule, may enter the premises where the Aroperty subjact to the PrapeAy Sohedute is IocaEed and retake pnssessfon of tha Praperty, ar requlre Lessee, af Lessee's expense, #o pramptEy return any or ell of the ProperEy to the possesslon oF Lessor at such placa wlthin the United Slates as Lessor shal] specify, and Lessor may thareafter dispose of the Property in actardante +nrith Article 9 af the Uniform Commereial Code In effect in the State; provided, however, th�t any proceeds from the dlspositiorl of the property in exc2ss of the sum required to (i} defease 1ha Proparfy Schadule pursuant to Seclion 6.�7, (ii) pay any oiher amounts then due under the Pfoparty Schedule, and (iii} pay l,essor's costs and expenses essoci�ted with the disposltlan af the Property (including attorneys feesj, shall he paid to Lassee or such oiher creditar of Lessee as may be entilled thereto, and turther provlded Eha! no deficiency shall he allowed against Lessae; (o) By written notice to the Agant, iF any, Les�or may instrucE the Agent to apply all sums held by tha Agent in any accounts relefing lo the Properly Sohedule under ihe appiica6le esaraw or trust agreement as provided in the appllaable escrow or trust agreemeni. (d) 6y wriiten notice to any ascrow agent (oiher than the Agen1) who is holding praceeds af the Property Schedule, Lessor may instruct such escrow agent to release afl such praceeds and any earnings thereon to Lessar, suoh sums to pe credited to payment of Lessee's obligatians under the Property Sohedule; (e} Lessor may take any aation, ai law or in equity, ihai Is permiited by applicable law and Ehat may appear necessary ar desirable to enforce or to protect any of its rights under ihe Property Schedule ancf this AgreemenL 19.03 No Ftemedv Exclusive. No remedy herein canferred upan or resarved to Lessor ]s Infended ta be exclus1ve and every auch remedy shall he cumulative and shal� he in edditfon to every ather remedy given under this Lease now or hereafier axlsting at law or in equity. No delay or amission ta axercise any right or power accrtring upon any defau{t shall impair any such right or power or shall be conslrued to 6a a waiver ihereof, bul any such right or power may be exercised from tlme to time and as afien as mey ba deemed expedient. in nrder to enlitls Lessor to exercise any remedy resanred to it In this ArticEe it shaEl nol be necessaty to give any notiee, otiier than suah natice es may be raquired In th3s Afticle. 13.04 Casts and Attorne�Fees. llpon the accurrence af an E�ent oF IJefault Gy Lassee ]n the perfarmance of eny term of this Agresmenl, l.essee agrees to pay to Lessor or relmburse Lessor for, in addition to all other amounts due hereunder, all af Lesso�'s costs of collectlon, includirtg reasnnable afforney fees, urhether or nnt sult dr antion is flled thereon. Any such oosts shall he immed€ately due and payable upon wriilen notice and demand given to Lessea, shall he secured py this Agraement uniil paid and shall hear InEeresE at the rete of 12°h per ennum or the maximum amount permiited by law, whlchever Is less. In tho event suit or actlon Is insiituted io enfarce any of the iarms of �hls Agreamenl, !he prevailing parEy shall be entifled �o recxi�ar from the olher periy such sum es the court may adJudge reasonahle as attomeys' fees at trfal or an appeal of such suit or action or in any bankfuptey praceediRg, In eddition to all oltter sums provlded by law. ARTICLE JCE� T4.p1 Notices. All notices, tertificates or other cqmmunicatlons he�eunder shall ba sufficiently given and shall be deemed glven when deliv�red o� mai]ed by certii[ed ma€l, postage prapaid, to the per�ies hereto st Iha addressas immediately after the signetures to ti�ls Agreement (ar xt such other address as ailher party hereta shall des9gnafe in writing ta the nther fnr nodces to such party), to eny assignee (aiher than a Reglstered Owner) at ils address es It appears on the regist�ation 600ks maintained by Lessee and tn any Reglstered Owner al its address as it appears on the raglstCation 600ks malntained by tha Agent. 14.02 Certlflcatlon as io Arbitra„ga. Unless a separate Certi�cate as ka Arbitrage Is dellvered on the Commaneement pate, Lessee shall ba daemad to make tha following representations and covenarits as af the Commencement �ate (or each Property Schedule: (a) The eatimaled tolal costs, InGuding laxea, Freight, installation, cosi o( issuanCe, of the Properly under the Pfopetty 5chedule wlll not be less than U1a fatal principal amount of tha Rental Payments. {b) The Property under ihe PCaperty 5ohedule has 6een ardered or Is expected to be orderad wlthin six months and the Property is expected lo ba del3Yered and €nsFalled, and the Vendor (ulfy paid, within one yesr from the Cammancement Oate. Lesssa wlll pursue the completion of Ihe Properly and the expenditure af the net proceeds af the Praperty Schedule with due dlligence. (cj Leasee has no# created or established, and daes not expeci ka creats or estabUsh, any slnking fund or other slmllar fund {p that is �easonahly expacted ta he used to pay khe Rantal Payments under the Property Schedu�e, or (ii) that may be used salely to prevent a detault in the payment af the Rental Payments under the Property Schedule. (d) The Property under ti�e Property Schedule has not been and is not expected la be sold or othenvise disposed of by Lessae, elther in whole or in major pert, prior to �he last maturity of the Rental Payments under the Properly Schedule. (a� Thera are no ather ohligallons oF Lessee which (i) are being sold within 15 days of the Commencemenl Date of the Praperty 5chedule; (il) are being sold pursuenl to the same plan of financing as the Property Schedula; and (lii) are expected to be pa'sd from sutrstantially khe sama source of #unds. (fj The ofticer or official who has execuled the Property Schedule on Lessee's 6ehalf is famillar wlth Lessea's expectatlons regarding ihe use and exnandlture of Ihe proceeds of the Propeity Schedufe. 7o the best o( l.essae's knowledge, informailon and belief, ihe f� a�,�ast„��e �.+�r-farta ��,�i�in are eccurate end Ihe expectations of Lessee set farth herein are reasonable. � �. � •� ' � � � � � , � ,�� , ni- � Fnrm A1a 96-20�.298-kmF ,� - 5 - 'f�4.03 Fur�er Assura� es. Lessee agrees to execute such other and further documents, including, without limitatian, confrmatory flnancing statements, conlinuallon ststements, certificales of tiUe and tha like, and to take all such action as may 6e necessary or appropriate, fram time to time, 3n the reasonahla opinlon bi Lessor, to perfect, confirm, eslablish, reestahlish, cantinue, or complete Ihe interests of Lessor in this Agreement and the properiy Schedules, to consummate the transacilons cantemplaied hereby and there6y, and to carry out the purposes and intentions of #his Agreerr�ent and tf�e Properfy 3chedules. 1�.Q4 Bind9na Effsct. Thfs Agreernent shall inuCe ta the benefit nf and sh�11 �e �In�in� upon �e$�qr and l.assee a�d their reapactiva successors and assigns. 14.05 Severahilitv. In the e�ent any provision of this Agreement shall be held invaiid or unenfarceable hy eny court of competent jurisdictian, sucil holding shall nn1 invalidat� or render unsnforceahle any other provision hereof. 14.06 Weiver of Jury Triafs. Lessee and Lessor hereby Irre�ocably welve ail righl to Ulal by ]ury in any &ctlon, procaeding or counterclaim (whathe� based on contract, tort ar otherwise) arising out oE or relaiing ta this Agreamant ar the aclions ot Lessor or Lessee in the negotiatian, administration, performence �r enfarcemsnt hereof. 1A.07 Amandmants. Chanaes and Modiflcatfans. This Agreement may be amendad in writing by Lessor and Lessee to the extenl the amendment or roodificatian doas not apply to outstanding Properly 3chedules at the time af such amendmert or modfflcation. The consenl of the applicadle assignee or Agent, if any, shall he required ta any amertdment or madificatian before such amendment or modiFicailon shall be epplicahle to any outstandtng F'roperly Schedule. 14.08 Exacution ln Counternarts. This Agreemenl and the Propert}r 5checEules hereunder may be simultaneously executad 3n several pounterpafts, each of whinh shall be an ariginal and all of which shall consiitute but nna and tha same instrument. 'E4.09 Annllcable Law. This Agreemenf shafl be govemed 6y an[E construed In accordance with tha laws of the State. 14.14 Caations. The capt�ons or headings In this Agreement ara for convenience only and in no way define, limit or describe t�e scape or �ntent of any pravisions or secEions of ti�is Agrsement. IN WITNESS WHEREOF, Lessar and l.assee have caused this Agreement io be exccutad In Iheir names hy fheir duly eutharized representatIves as af th� rfate first above written. Lessor: Dell Government �easing and �inance Program IIl BY: i�� Name: ��,,�,��-, �_ ��e�� Title: ��t ,��1�;u�� .�u��° Lessee: City of �ort Worth � ,�`� � By : � �s�.�-�, 1 � � -- 1�-W ' �I..�.�' Name��"j�j";�,�"i�,� �, � : . TitE�=l.��., � ,� ��.�.. Attest: By: � -� �� r / . l Name: `? ' Title: � ��.�~ � � � �° R(�1fLd � � ��j �,EGA�lTY: --' _ .. i �i �� 'ty Att - �� -�`�� Contra�t Au�horiza�iqn � � �.=� � � �� -- -�-�- - - -. -- - •-�--■� � .�� Form No: 96-246.298-kmf' ` � ?�ansrEll di ,_ ,�__ . � i .G. Prop��iy �chedul� f�o. 'i Master Tax-�xempt LeaselPurchase Agreemenf 7his Praperfy Schedule No. i is entered into as of the Corrimencement Date set forth below, pursuant to that certa9n Master Tax- Exampt LeaselPurc�ase Agreement (tha "Master Agreament"), dated as bf 0 911 512 0 0 2, between Dei[ Gavernment Leasing and Finance Program lil, and City of �orE Worth. 1. Interpretation. The term� and conditions of the Master Agreement are incorporated herein by reference as if fully set fo�th harein. Reference is made to the Master Agreement for all represenkations, co�enants and warranties made by Lessee in the execution of this Property Schedule, unless specifically set forih hereln. In fhe event of a conflict between the pro�isions of the Master Agreement and the provisions of this Property 5chedul�, #he provisions o# tFris praperty Schedule sha11 control. AEI capita[izsd terms not otheiwise deflned herein shall have the meanings provided in ihe Master Agreement. 2. Gommencement Qate. ihe Commencement �ate for this Property Schedule is 9I1512002. 3. f'ropertv �escription and Pavment 5chedule. The Property subject to this F'rop�rty 5chedule is described in Exhibit 1 hereto. Lessee shall nnt remo�e such property from the locations set forth therein without giving prior written notice to Lessar. The Rental Payment Schedule forthis Property 5chedule is set forth in Exhibit 1. 4. Opinion. The Opinian of Lessee's Cnunsel is attached as Exhibif 2. 5. Lessee's Certificaie. The Lessee's Certif�ca#e is attached as Exhibit 3. 8. Proceeds. Lessor shall disburse the proceeds of this Property SchecEule in accordance with the instructions attached h�reto as Exhibit 4. 7. Acceatance Certificate. The form of Acceptance Certiflcate is attached as Exhibi# 5. 8. Addik9onal Purchase Oation Provisions. In adcfition to the Purchase Optiot� provisions set forth in the Master Agr�ement, Rental Payments payalale under this Property Schedule shall be subject to pre�aymenk as �olkows: See termination amount in Exhibit 1 (Payment Schedule), subject to per diem adjustment, 9. Bank Qualifcafion and Arbitrape Rebafe. Aftached as Exhibit 6. 10. Exoir�tion. Lessor, at its sole determination, may choose nnt #o accept this Property Schedule if the iully executed, original Agreement (including this Property 5chedule al! ancillary documents} are not received by Lessor at its place of business by 09115I2Dp2. IN WITNESS WHER�OF, Lessor and Lessee have caused this Property Schedu[e to be executed in their names by their duly authorized representaEi�es as of t�e Commencernent Date abo�e, Lessor: Dell Government Leasing and Finance I Le�see: City af Fort Warth Program Ilf BY� l�ftiL� � Narr�e: � �,,�a� � �,�� . � Title�t�°n��.cc�� a�cu� By: ��.� L}y � �� Name: � t��J�� - ��.��L� I r;ti�: � �.�`�.�.��- # �i� �- -� - �''l ., _ � � Attest: � r , , Sy -��tLQ I�lame:, .. ITitle: ,, � �f ��t _ i �• �j j I{ �� av�� ro� ��r�mr � _�� +�y A _ Q�g EXHlBIT 1 F ro�erty D��cript�on and P�yrr»nt �chedui� Re: Property Schedule Na 1 to Masfer Tax-�xempt LeaselPurcl�ase Agreement between !]ell Government Leasing and Finance Program III and City of Fort Worth, 7he F'roperty is as follows: The Property as more futiy described in Exhibit A incorporated herein by reference and attached hereto. EQUEPM�NT LOCATION: 1000 Throckmar�on, Fort Warth, 7X 76102 USE: operations - This use is essential to the proper, efficient and ecanomic functianing of Lessee or to the services that Lessee provides; and Lessee has immediate n�ed for and expects to make immediate use af substantially all af the Property, which need is not temporary or expeckEd to diminish in the foreseeable future. Rental Pavment Schedule If fhe Due pates are not defined �n this Rental Payment 5chedule, they shall be defined as the last day of each manthly p�riod of this Rental E'ayment ScE�edule commencing with the Accepkance Date. Tatal Principal Amaun# $224,72424 � � Pay # � � I z � � I. A � ' I 6 I 7 I 8 �9 - I 1D � 11 � 12 I, 13 I 14 � 15 � 16 I 97 I 18 I 19 I 20 I 21 I 22 23 24 25 26 27 Date 15-Oct-2002 � 5-NoV-2002 15-Deo-2002 15-J a n-2D03 15-F'eb-2003 15-Mar-2003 15-Apr-2003 15-May-2003 15-Jun-2003 15-Ju1-20Q3 15-Aug-2Q03 �5-Sep-2003 15-Oct-2003 15-Nov-2003 1 �-Dec-2003 15--Jan-2a04 '[5-Feb-2004 15-Mar-2D04 15-Apr-200A 1 S-M ay-2004 15-Jun-2004 15-Ju1-2044 15-Aug-20{l4 15-5ep-2004 15-Oct-2004 15-No�-2004 15-Deo-200�4 Payment 6,863, 08 6,863.08 8,863.D8 6,$63.08 6,863,08 6,863.08 6,863.Q8 6,863.08 6,863.08 6,863.08 6,863,OE 6,863.08 6, 863.OS 6,863,08 6,863.OB 8,863.D8 6,$63A8 fi,8fi3.08 6,863.08 6,8fi3,08 fi,B63.08 fi, 863.08 6,863.D8 fi,883.Q9 6, 883.08 6, 863.08 B, 863.08 I nte resi 1,172.36 1,142.67 1, � 12.83 1,D82.83 1, 052.68 1, D22.37 99'f .90 98'{ .27 930.48 899.53 868.42 837.14 805,71 774,11 742.34 710,41 678.3'� 646.05 613.6'f 581_Oi 548.24 515.29 482.18 448.89 415.43 3$1,79 347, 98 Prepayment I Balance j 225,604, 53I 2�s,��z.�� 213, 789.76� 207, 836.10� 201, 851.39� 195, 835.45 189, 788.'{ 4 183,709.27 9 77, 598.69 9 71, 4�623 165,281.73 159,075.49 � 52,83�,92 . 146,564.27 140,259,91� 133,922.6fi 127,552, 35I 121,148. B0� 'I 14,711. B5� 108,2�1.32� 1 D'f ,737, D3� 95,198.81� 88,f 26.48� 82,019.86� 75, 378.78� 88,703.05� 61, 992.49I ..� _ . � � �_ � �� Form ]�[a: 96-200.248-kmf - Z - 28 29 30 3'� 32 33 34 35 36 15-Jan-2005 15-Fe6-2005 � 5-Mar-2005 15-Apr-2005 15-May-2D05 i 5-J u n-2005 15-J u I-2005 15-Aug-20D5 15-Sep-2605 6, 863.08 6,863.08 6,$63.08 6,863.08 6,863.08 6,863,08 6,$63.fl8 6,863, 08 6,863.08 313,99 279, 82 245.48 210.96 176.25 141.37 106, 30 71.05 35, 62 55,246.93� 48,466.17 41,650.04 34,758.36 27,910.92 20,987.56 14,028.OBI 7,032.29I O.ODI Lessee; City of Fort Wor�h BY� ��..C.._� 1 i'�-�. ,]��. Name: ��1� [� 1�.- P �l�_� � Title:�.�,.`��.�iT� I � ! � � �AP R�lf�� F(� � i.EGAl. -- �'� � .� _ �' F�� Ciiy At �,r - � �laie �_ Fann No: 95-20U.298-kmf � �� .��_ , _3_ ��o�� _- ��..�-.� ...,��,�� 18 September 2QQ2 To: Dell Governrnent Leasing and Finance Program III 100D South McCaslin Bl�d. Superior, CO 8fl027 Ladies and Gentlemen: I am counsel to City of Fort Wortti (the "Lessee") and, in that capacity, I have examined Master, Tax Exempt Lease/Purchase Agreemant, dated as of September 15, 20�2, {the "Master Agreement"), between City of Fort Warth, as Iassee, and Dell Government Leasing and Finance Program III (tIie "Lessor"), and the execution of Property Schedule No 1(tha "Property Schedule") pursuant to the Master Agre�ment. Based on my �xaminaEian of the Agreernent, the infarmatian statement(s} required for purposes of Sectian 149(e) of the Internal Revenue Code of 1986, as amended (the "Code") and such other documents, recnrds, papers as I have deemed appropriate, I am of the opinion as fo�lows: (a) Th� Lessee js an entity duly organized and existing under and by virtue of the authorizing statu�e and constitutional provisions of the State of Texas and is a state or political suhdivision thereof as described in Section 103{a) of the Code, with full power and authority to enter into the Agreement and the transactions contemplated there6y and to perform alj of its obligations thereunder; {b) The Agreement has been duIy authorized, executed and delivered by of the Lessee l�y praper actian of itis governing body ai a meeting duly called, regularly convened and attended throughout by t�e re�uisite qunrum of the members thereof or by other apprapriate ofticial appr�val, and to the best of my knowledge, ali requirements have been met and procedures have accurred in order to ensure the �alidity and enforceahility af Ehe Agreement against the Lessee; (c) The Agreement constitutes the valid, legal and binding abligation of the Lessee, enforceable in accordance wittz its terms; (d) Nn appr•oval, consent or withholding af objectian is required fram any federal, state or Iocal governmental authority or instrumentality with respect to the entering into nr performance by the Lessee of the Agreement and the �ransactions cantemplated th�reby; (e) Lessee fias complied with any applicable public bidding requuements and other applicable state and federal laws in connect�on with the Agreement and the transactians contemplated thereby; {�j The entering into and parformance of the Agree�nent will not �iolaie any judgment, order, law nr regulation applicable to the Lessee or result in any breach of ar constitute a default under, any instrument to which the Lessee is a party or by which it or its assets may be bound, or result in the creation of any lien, charge, seeurity interest or other encumbrance upon any assets of the Lessea or on the Froducts, oth�r than those created by the Agreement; (g) The Products are tangsble personal pr�perty and when subject tn use by the Lessee will nat be ar become iixtures or real property under the iaws af the State of Texas; Davic� L. Yeti, City�Attarney OFI'ICE OF TI� CITY ATTORNEY The City of Fart Worth * 1000 Throelcmartpn 5rreet * Fort Worth, Texas 76102 ($17} 87i-7600 * FAX (817) 871-8359 {h) There are no credible actions, suits, praceedings, inquiries or investigatians, at law or in equity, before or by any court, public hoard or body, pending or threatened against or affecting, nor to the bast of my k�owledge and belief are there any bases therefnr, which, if same were to be determined aci�ersely to Lessee, would ha�e a z�naterial adverse ef�ect on the ability of the Lessee to fulfijl its obligations under the Agreement; (i) Lessee has, in accordance with the rec�uirerrients of law, fully budgeted and appropriated snfiicient funds for Lessee's current FiscaI Period to make the Rent payments scheduled to come due during Lessee's cnrrent Fiscal Period and to meet its other obligations under the Agreement for the current Fiscal Period, and such funds have not been expanded for other purpases; (j) L�essee's obIzgakion(s) ander the Agreernent islare a State or local bond within the meaning of Section 103 af the Code; (k) The Agreement does not constitute an arbitrage bond within the meaning of Section 14$ of the Code or a private acrivity band witt�in the meaning of Section 141 of the Code; and (1) The interest portion of the Rant due under the Agreement is not includable in �oss income for Federal income tax purposes under the Code and wi11 not constitute a tax preference under Sectzon S7 of khe Code for purposes of computing the alternative minirnum tax imposed pursuant to Section 55 af the Code. Subj�ci to the lavvs of Texas governing the practice af law, this opinion is delivered to the addressee ior its bene�t and the t�eneiit of its assigns for the purpose cantemplated by the Agreement and may be reiied apon by special tax caunsel if one is retained to render an opinion as to the axemgtipn from federal income t�ation af the interest cornponent of payments tn he made by Lessee pursuapt to the Agreement. Very truly yaurs, Da�id L Yett, City ttot r B . l Assis t Ciry Attorney David L. Yett, City Attorney OFFICE OF THE CITY ATTC?RNEY The City of Fort Worth * 1000 Throckmorton Street �` Fort Worth, T�xas 76142 (817) 871-7600'� FAX (8I7) 871-8359 EXHIBIT 3 Le�se�'s ��ificat� Re; Praperty Schedule No. 1 to Master Tax-�xempt L�aselPurchase Agreement between Dell Government Leasing and Finance Program III and City of Fort Worth. The undersigned, being the duiy elected, q�alified and acting of fhe City of Fort Worth ("Lessee") do hereby certify, as of 9115/2Q02, a� follows; 1. Lessee did, at a meeting of the governing body of ihe L.essee held by resolution or ordinance duly enacted, in aecardance with all requirements of law, approve and authorize the execution and deli�ery of the above-referenced Property 5chedule (the "Prope�ty Schedule") and the Master Tax-Exempt LeaselPurchase Agreement (the "Master Agreement") by the foilowing named representati�e of Lessee, to wit: NAME TITLE SIGNATURE OF EXEC�TING OFFICIAL OF EXECIJTING OFFICIAL OF �XECUTING OFFICIAL �� ' �� m�� „"t��' i. ` -k3'�fLt_ �+d f1�, - !� s�iF�d.�� nA d! Or — - 2. 7he above-named representafive of the Lessee held at the time of such authorization and holds at the present time fhe office set forth above. 3, The meeting(s) of the governing bocEy of t�e �.essee at which the Master Agreement and the Property Schedule were approved and authorized to be execuied was duly called, regularly con�ened and attended throughout by the requisite quorum of the members #hereof, and the enactment appro�ing the Master Agreement and tne Properfy Schedule and autharizing the execution ther�of has nat been altered or rescinded. All meetings of tna gaverning body af Lessee relating ta ihe au#horization a�d delivery of Master Agreement and the Proper�y 5chedule ha�e heen: (a} held within the geographic boundaries of the Lessee; (b) open to the public, allowing ail peopfe ta attend; (c) conducted in accordance with internaf procedures of the go�erning body; and (d) conducfed in accordance wikh the cha�ter of the Lessee, if �ny, anc� the laws o� the State. 4. iVo e�ent or condition tF�at constitutas, or with the gt�ing of notice ar the lapse of time or both would constitute, an ��ent of Default or �n E�ent of Nonappropriation {as such terrr�s is defined in the Master Agreement) exists at the date hereof with respect to this Property Schedule or any othar Property Schedules under the Maske� Agreement. �. The acq�isitian of all of the Property under ihe Prap�rty Schedule has been duly authorized by the governing bady ofi Lessee. 6. Lessee has, in accordance with the requirements of law, fully buclgetad and ap�rapriaked sufficient funds for the current budget year to make th� Rental Payments scheduled to corrte due during the cwrrent budget yea� under the Property Schedule and to mest its other obligations for the current budge# ysar and such funds have not been expended for other �urposes. 7, As of the date hereaf, no litigatian is pending, (or, to my knowledge, threatened} against Lessee in any cour� (a) seeking ta restrain or enjny in the deli�ery of the Master Agreement or the Properiy 5chedule or of other agreements similar to the Masfer Agreement; (b) questioning the authority of Lessee fo execute the Master Agreement or the Property 5chadule, or the validity of fhe Master Agreement or #he Property 5chedule, ar t�e payment af princip�l of or interest on, the ProperEy Schedule; (c) questioning the canstiku#ionality of any statute, or the validity nf any praceedings, authorEzing the execution of the Master Agreement and the Property Schedule; or (d) affeciing the provisions made for the �ayment of or security for the Master Agreement and the Proper#y 5chedule. City of Fo Worth By: . �-� - sr � d` _ � Titie: �� ,� �� SICN�R i44��' hiOT BE T1�E 9A�'IE A� TF�� 7�� UTIh�� C�IAL�� H��J Al��VE. EXHIB[T 4 �a�m��t �� r�c��ci� i�s��uc��or�s Dell Government Leasing and Finance F'rogram lll 10Q0 South McCaslin Bl�d. Superior, CO 8Qa27 Re: property Schedule Na. 1(tha "Property Schedule") ko Master Tax-Exempt LeaselPurchase Agreement between Dell Go�ernment Leasing and Finance Program III ("Lessor") and City of Fort Warth ("Lessee"}. Ladies and Gentlemen: The undersigned, an Authorized Representative of the Lessee hereby requests and authorizas Lessor to disburse the net �roceeds of the Property Schedule as folEows; Name of Payee: Sy check By wire transfer If l�y check, Payee's address: If by wire transfer, instructions as follows: Pay to Bank Name: Bank Address: 8ank Phone #: For Account af: Account No.: ABA No.: Ciky of Fo�t Wor#h B : \�� _ �1 �� Y Name��,�� 9.� iJ4�t�:�' i� Title: �iS �'i�- ��;� �1t�� PROVED A T� ��!'�Y; � � � t �� 'xa,-- �� A � "�° pat� EXHIBIT 5 A�c��nee ��i�i�a�� Dell Gavernment Leasing and Finance Program 11� �i00Q South McCaslin Blvd. Superior, CO 80027 Re; Property Schedule No. 1 to Masfer Tax-Exempt LeaselPurchase Agreement between Dell Government Leasing and Finance Program II1 ant[ City of Fort Worth Ladiss and Gentlemen: In accQrdanea with the above-referenced Master Tax-�xempt Lease/Purchas� Agreement (the "Master Agreement"), the un�ersigned ("Lessee") hereby certifies and represents to, and agrees with, Dell Government Leasing and Finance Program lll ("Lessor"}, as follows: (1) The Property, as such terms are defined in the above-referenced Property 5chedu{e, has been acquired, made, delivered, installed and accepted an the date indicated below. (2) L.essee has conducted such inspection andlar testing of the Pro�asrty as ii deems necessary and appropriate and hereby acknowledges that it accepts the Praperty for all purposes. (3) No event ar condition that constitutes, or with notice or lapse of time, or both, would constitute, an E�ent of Default or an �vent of Nanappropriation {as such terms are defined in ihe Master Agreement) exists at the date hereof. Date: City of Fort Worfh as Lessee By: l �., ,�" L �'L��.,��-� Name: �P� 1:. � Title: _l'�.��x v�-� %,�`t� �i�'1P�r 5 �XR11�li A �a �ROP�RTY 9�SC�tI��'I�IV I .� �' � ■ q: i, _ _ � IBase Unit: #'awerVault 136Y,LT0,900f2p�G, L{,CI,Rack (220-3565} I ,prncessor: i?S Slnt �ol�mn,PowerVault 136T (340-2624) �MAmor�: I 12 51pt IVIail6ox(18 Slot], PowerVault 936T {340-262�} ,�Hard Orive Controller: 1-1ber Bricige,FC2,PowerVault 136T (3ap-2635} .fi�u�. Festure 23ervice: yeryice: � �ervice: �,..arvice: I' �:,��rvice; I �lnstallatiore Misc: Misa: rf'� f�, 1 i Hase �nit: I; I I �� 3XLT0,1001200G,W3FP, PowerVault 936T,with 3 Filler Panels (344-3229) �Red�ndant wnwer;Sunply,fi5W, PowerVault'E3fiT(390-fl522} Pr, mfer Enterprfse Support - Gold -Advanced 5oflware Sup�art fluantity 3 Resolutions (95D-0197) Premfer Enterprise Supporf - Gnld - Premium Service5, 2YR Exkended (950-0119j fype 2 Contract - Same l�ay +4-Mour 7x24 Parts and Labor On-Site Response, In[tial Ysar (900-6730) II -�y4e 2�ontrect - Sama Day �Hout 7x24 Pa1'ts and Labo� C�n-8ite FtBsponse, 2YR Extended {;9U4- ; 6592) I --•-� r p.Y;,,�ar F�rg�prise 5upport - Gold - Premium Servlces, lnii[al Year (950-a218) Installation, PV128!'13tiT, SAN Environment (95D=T727) ��14apid Rails for Defl Rack (390-0551) :�xTape llAedia,LT0,5PK,7oUl200G (340-s780} I:T�n pack 73GB 10K FC Hard Disk for �eIUENIC FC4XOX DPE! DAE {34d-339U) �l.7elIlEMC FC4700-2Ghps L�PE IField Installed,4rray jZ'20-8295) II]eIVEMC Navtsphera 14�anager Tfer5 (420-0424) I `fype 2 Cantract - Same �ay 4-Hour 7x24 Parts and La1�or �n-Site 1Respanse, In[tial Year 5950-97oU� � I� �fype 2 Contract - Same Day 4-Hour 7x24 Parts and l..ahor On-Site Response, 2YR Extended (950- I1702) I�I'remium Enterprise Support - Gold - Premium �ervices i950-5907) � I li'remium Enterprise Supporf - Gold - Advanced Software Support {950-5977j III7PE Onstallaiian (950-673T} �� Form No: 96-200.298-kmf ��. � � �— � _2_ ei . � INa��Gnhere Manager Insrallation (950-8759j �! 'After Wours 3 urcharge ,(902-0729) �� .l��emium Enferprise Support - Gald -Advanced 5oft+nrare 5upport [960-6717) I � SNAPVI�W Implementation (950-6788J i�itorage Glusier Information No Cluster,EMC Fulfilled {31D-1217) , _ �� _ -- '�u�' P � �9ase Unit: I iG�!!?�MC Access Logix 7ier 5 for 47D0 t424-0672) I DeIElEMC Snap Vlew 7iar 5 for 4740 {420-U673j I SAN [mplementatlon, 1-7 Hosts (950-6778) � I � I]eEllEMC 4XOXX Ilisk Array �nclosure,Field Rack Install (22Q-6209j _ I, }'ien Wack 73GB 10K FC F'lard �isk far I�elllEMC �F.r.4X07S �PEI DAE (340-3380) � .� Type 2 Gontract- Same �ay 4-Hour 7x24 Parts and Labor On-Site Response, Initial Year (95tl-9T10j Type 2 Contrac4-S�md Oay 4-Hour 7x24 Parfs and Labar On-5ite Response, 2YR �xiended (950• '1712) �rem._��m �nterprise 5upport - �,old - Premium Servicas (950-SB17) �C�AE Instalfation (954-6738j r4dditional pAE Implementatian (90�-0779) After Hours Surchargg {9U2-t�729) ' �— - — _ �=— r � u •_ �I�ase Unit: __ — _ _ _ _ .. ... E � I � I 1. - -•u I Base �,hit Qlogic Dptical HBA with orir+er for WIIV 2�OQ attaaN {221-o236y Type 2 Contract - Same �ay 4-Hour 7x241Parts and iabor On-5ite Response, Initial Year (95u-t740) I Form No•� 298-kmf ;�T fue 2 Contract - 5ame Oay 4-Hour 7x24 Parts and l.abor Orl-SEfe itesponse, 2YR Extencied (950- � �`P?42} � � �� ., .�� -3- � e e R I' � I�RA Inskallatian {956-6748) I I�avisphere Agent Insiallation (950-6758) I ,� �I IVavisphere Power Path Installation (902-43B7J �I 25�u[ MulEl-Niotfe FC Cahle LC-LC (390-1521) I -. — — .�� `a�' � [011 i 13ase Unit: � L;?se Unit: � �.... ■ I I ��-oort Fibre Channel-ZGbii Switch with 16 Short-Wave Fihre Channe[ Ports (220=A�96) I, . �i"'ype 2 Contract - Same Day 4-Hour 7x2a Parts and Labor On-5ite Response, Initial Year (950-1720) I 7yoe 2 Contract - Sarne Day 4-Hour 7x24 Parts and Labar Qn-Site Response, 2YR Ex#ended (950- 9' 722 J Nr�mium Enterprise 5uppork - Gaid - Premlum Services (954-5927} I�remium Enterprise Support - Gold -Advanced Soffware Support (950-5987) 15-Port �witch Installation (950-fi747) Ij�OM Multi-Mode FC Cable LGLC (310-07'S6j - Quantity 4 I� ��hfter Hours Surcharge {gD2-t3729) II L ase 2Ghit Qlogic Optical HBA with Briver for WIN 2000 attach (221-0236) ,�;ypa 2 Contract - Same Day 4-Hnur 7x24 Parts and Labor OnSlte Response, initial �Year (950-174d) I�. �. , -�-�. Type 2 Contract - Same Day 4-Hour 7x24 Parts and Lahor On-51ta Response, 2YR Extended {950- i�az) I�gA Installation (950-6748j �26M Multf-Mode FC Capls LGLC (310-1624) �i � e'��' lo � i � �� . ■ .� � u Fonn Nn: 46-20U.296-kmi - 4 - ��.�� I:!. _ . . _ . _ . -- — : �- --_ � � :� .�... �. ��__ _ __.... _. �pase Unit: l��ss 2C6Ei Qlogic dptic�! Fl6A �ith �rl�er tor WIN NT atEach (221-i�?35j I � � �I � I II— — I�ype 2 Contract - Same Day A-Hour Tx24 Parts and Labor On-Site Respanse, Initial Year (950•174Dj �7ype 2 Cantract - Same Day �-Nour 7x24 parte and Labor On-Site IResponse, 2YR Extended (85U- ,'� 7421 IiBA Insiallation (95U-6748) lVavisAhere Agen4 InstallatCon {950-6758) I '�l�;a�isphere Power Path Installation {902-4357� I �5M Mu1ti-Mode FC Cable LC-LC {31fl•1621� _�i .. � ._: I: I I� I� � �� ► ,��° �� Ease Unit: i -- -- I� l3ase 2Gk�it Qlagic Optical HBA with priver for WIN NT a�tach {221-0235) IType 2 Contraci -�ame Day 4•Hour Tx24 Parts anc[ Lat�or qn•Site �:esponse, lnYtfaf 4'�aar (95[s-1740) � ��Type 2 Contract- Same Day 4-Hour 7x24 Parts and Labor On-Sita Responae, 2YR Extended (950- ,�''Az� iBA Installafion (950-674Bj ��Nf Multi-Mode FC Ca�ie LC-�C (�10-4fi21) I prnduci h�A Utllity GD,WItJ Attach Customer lnstall ��24-09U3) ��ayia�hara pn�gnt� Wll+t Qttach (420.0$951 power Path ENT Windaws Workgroup Customer Kft 1420-0963) �3a�3d Rails !nr Rt�g Wnrt FG_2gmcade Switches to he Ynsta[led in a�7ell Ratk. e:ustomer Install {396-1766] �aRn 111i1ifi� Co;WiN Aftacfti Customer Install fa20-09D31 �iBA Utility CD,WIN A�tach Customer Install {420-09031 ��IanhRre 4nanf_ WfN Attaeh ikZt1-08951 r-�----.a_.._, . _ -- � P�wer PaEh ENT Wlndaws Oepatfinental Customer Kit (420-fl9fi1) F��a I ir�lit� �;�,y►!p� Atta_r.h t_ i�af�mer InstalG f4��Q-a9031 _ _ Gluantity .. 2 2 � 1 � � i� 2 I� 2 � � � � � ��. ..� �� ■�� Ponn No: 9'6-20D.298-kmF - 5 - e- �� ' ,� • �� -6- Forrn No: 96-2D0.248-km€ , � EXHIBIT 6 �anl� Qu�li�i�ation And Arbi��aq� I�eb��e Dell Government Leasing and Finance Program III �000 Soufh McCaslin Blvd, 5uperior, GO 80Q27 Re: Property Sch�dule No.1 to Master iax-Exempt Lease/Purchase Agreemenk Dell Go�ernment �essing and Finance Program III and City of Fart Worth Quafified Tax-Exempt Obliqation Th�s seetian intentionally left blank Arbitraa� Rebate. (a) Lessee is a go�ernmental unit under the law of th� State with general taxing powers, tb) this Property Schedule is not a private activity bond as defined in Section 141 of the Code, and (c} 95% or more of the net proceeds of tf�is Property 5cheduEe will be used for local government acti�ities of Lessee. Lessee: City of �art Worth r B . � �, � v � �� 4 Name: l lf l�l�ul �� -��.i��.L � Tikle: ��i ��L�.� ��.��j �� 1'��- 1 � �Ri�VED i'(� �A�Ai�D 1.��.�� ., .. .�} ;� �' t'� [iL � ��#� �'aty At � n ��que�� fo� ��rti%ica�� o� Insur�n�e T0: Insurance Company: Cantact Name; Telephone Number: Fax Number; FROM: CustomerlLessee Name: Contact Name: Teiephone Number: Fax Number: Gity af Fort Wotth 1000 Throckmorton Fort Worth, TX 76102 Mr. Char[es Boswell Asst. City Mngr 817-871-6'i11 City of Fort Worth is in fhe process of financing certain equipment from Del1 Go�ernment �easing and �inance Program III. In order to facilita#e this transaction, plaase submit a Certificaie of Insurance to: Dell Governmertt Leasing and Financ� Program lll 1 Q00 S. McCaslin Boule�ard Superior, CO 8Q027 City of �ort Wort� requests that Rell Gavernment Leasing and Finance Prngram I11 be listed as "Dall Go�ernment Leasing and Finance Program 111 and its Assigns" and named ADDITIONAL INSUR�D as to public liability coverage and SOL� L055 PAY�E as ta �roperty cor►erage. A copy of said ce�tificate should be forwarded to Del! Government Leasing and Finance Program il� as described below. NOTE: Coverage is to inclt�de {1) insurance against all risks of physical loss or damage to the �quipment tincluding theft and callision for Equipment consisting of motor vehicles) ar�d (2} comrnercial genera! liability insurance (including blanket contractual liability coverage and products �iability co�erage) for personal and bodily injury and properfy c{amage. [n addition, Del! Governmeni Leasing and Flnance Program III is io receive 30 days' prior written noiice of cancellation or material change in ca�erage. Pl�ase fax this completed information to: Dell Go�ernment Leasing and Finance Program III Afteniion: Maryanne Dugan Fax Number: 720-304-1479 Phone Number: 720-304-1260 Please con#act the person abo�e if you ha�e any questians. Thank youl .��i��]�,� ��4�� 1 � �� 1-1�� G 07/15/�002 � PRi3�UCER {y72) 91$-y840 FAX (972) 91$-9958 THIS GERTIF'ICATE 1S 155LIE6 A5 A MATT�Fi OF INFORMATION Pal mer & Cay of TeX1s ,�t1C . ONLY A�I� C4NF'�RS NO H1G1iT5 LJPON THE C�H71F'lCATE HOLdER. TMIS CERTfFiCA7� ��5 N[�'� Ai4�EN[�, �Xi�iV� C7� 122Z 5 Greenvi'1'1 e Ave. ALTER THE G�V�RAG� AF'�aRDED BY TliE PDLICI�S ��LOW. 5ui'Ce 33p ` COMPAI��ES AF�QHDING COVERA�E ___.......__.._._....,._..,.....,....... .._..�... ..�.� W__�..�....�.�_......._.._.........__..._.,----,.._,�_...�...,.._.�_Y_,_...�..,....�,..,._...,.,......,.--- �allas, TX 75243-9334 COMPA�iY Raya�l�ndemnity Company Attn Shy� a 5mi th Ext 139 A a_......_. _....__.n......_.....�_..._.......- .................... . ....,...._m.,..�..__....---.�_........__..._.........�..._.... ..._cn B,ar�v._...._.....��............�,w�,.�......�....._....�..__..._._�._��......_.._.........._.,.�r.,�.�__.....�..,,.,.,�.�.�....� MSUREo �ity of For.t War�h 1.004 Throcl<mort4n 5'Creet _.._._..�._._._�_.___......_v_...�..._.._ ..............__._..,..,_........�_..W._.__...._.�..._........._.__.,.........._........�_,H......,.�.__.�...._._ Fort Worth� TX %62OZ COMPAidY C �. ,�...,_m....._.._......_.._...._.........,.�.....W....,..,.�..M,..m.___..... . ..... ...._ ___..�... GOMPAIdY ! � ,:COV�F��k�E5� „ ' `i THI5 IS TU CERTIFI'' THAT T!-IE PpLICIES QF INSl1AANC� LISTED B�LOW MAV� S��N ISSIJ�ti 70 THE INSIJRED NAMEa A9DV� FOA TH� PDI.{CY P�E�IOf] INdICATER, NOTWITHSTANDING ANY REGIUIREMENT, T�RM �R CONDITiON OF ANY CON1"RACTOR OTHER �OCUM�NT WITH RESPECTTO WHIGH iHIS C�R7IFICATE MAY B� ISSIlE� OR MAY PERTAIN, THE I�fSURAiVGE AFF�Rp�O BY TH� POI.IGI�S p�8CR16ED NEREIN 15 SUBJECT 70 ALL THE TERMS, �XCLIJStON5 AND CONDITIONS OF SUCH POLICIES. �IMITS SHOWN MAY HAVE BEEN RFDUCED BY PAID CLAIMS. .._.w.._,_.._,.....�..._.,.TYPE OF INSI}RANCE .� ._.w,�.,.,..,..._._._... �m.,,_ POLICY NUMBER�� ...................�.�..,,._,....._...........�.,...__._.,..,........,�..,..,,..,.......---•--._._„�..M,.,.} ,�..... COVERED PROPER _. ..�._.�.�_.,�., ..�,».�,,.,.wm,.....,.,.. CO I'OI.ICY EFFECTtV� POLICY �XpiFiA71QN TY € LIM[TS LTR qA'fE MMlpD1YY) DAT�{MM/DD1YY X� PRpAEq7Y RH�'320574 �a%Q7.�2��7. ��OZ�2Q�2 BUILOING ; $ CAUSES OF LOSS , ....^m BASIC 8RQA0 A ' Xm SPECIAL X� EARTHQUAKE ' X F�000 X Speci al . .J(�� Speci al ., WW .� fI+ILAPI� MAAINE TYPE OF POLICY ,CAl1S�S OF L45S NAMEn PERILS � OTHER CRIME TYPE OF POLICY �� BO1l.�R 8� MACHINERY m.�� O7HER ,...w.. �..._.,.......�. PER&OPfAI. PRdPER7Y ' $ �..,,.�,. �._.__.W.....„._ � B1151NES51NCOME � $ X exraa �x��r�s� $ �-�_, 5pD �4D0_ BLANKE"!' BUIL.dING $ � BF.ANKET PERS PROP . $ �.,�..�.,...�...µ.��,__ .... .. .........._._� �... ,�....._...�.._M.. BtANICET BLDG & PP $ X Blan[cet Real �� 699,�41�1,02 X Bus�ness Inte $ 50D,QOq _...ti � �......, � _..._.__� __._ __,.._,....... $ �. i � ..�.�... .... . � s.,_ _.._. �..___�..�. _.. W.__....._. ........�� -$• i$ I� $ �$ :� �� $ � � 30�(�T�.�/ODQ��S60ST�irocNlcmorton 5treet Fort Worth, TX 751.D2 Sub7ec�:�xpediting Expense Limit:5Q0,000 / SubjecC;Praperty��n Transit Limit:5Q0,OD0 Subject:Blanket �lectronic Equi�ment Limit:14,000,OD0 / 5ubject:Blanket Fine Arts Limit;Z,00Q,D4� 5ubject:Fix�d Base Communications Equip Limit:9,OD0,OD0 SpECIAL CONOITIUN51O7MER COVEAAGES ri�is pol'icy pravides Property Fire and Extended Coverage on'ly wi�th Del Government Leasing & Finance listed as an additional insured. �enera� Liabil�ty Insurance is self---insured by the C�ty of Fort Worth. iEE�CTIFEC�ITE HOLDER pel� Government Leas�ing & F�inance Attn: Terry Hutchens ' One Qe11 Way RR8 Box 8747 Round Rock, 7'X 78682 t A�oRo 2��1��&�� CA�CEI,LATGbh1 _ SH�ULP ANY aF TH£ ABOVE OESCRIBEU POLICIES 6E CANEEiLED BEFOiiE THE kICPIAATION I3ATE THEREOF, THE ISSl11N6 COMPpNY 4!lILL E�iUEAV6R TO MAR �O OAYS WRITTEN NOTICE TO THE CERTIFICATE NOLdER NAMED TO THE L�Ff, BUT FAILURE i0 MAIL Sl1CH NO710E SFEALL IMPOS� NO bBLIGATIOl+I OH LIABILITY OF ANY KIFN} t1PON THE C4iNPANY, ITS AGHNTS OR R�PR�S�NTATN'�S. AUTH4RIZE0 REpRESENTATIVE �� Ro6ert 600khammer. ZII/RS6 .. �A��RD�C{iFiRORATI�i'J '�995 R�otificati�n o� i�x ire�t�en� Dell Government Leasing and Fina�lce Program IIE is required t� collect and remit salesluse tax in ihe iaxing juri�di�fii�r� where your equi}�ment wilf be located, In the avent we do not receive a valid sales tax exem�tion certifieate prior to the date your lease commences, you will be charged saleslus� tax. Personal property tax returns will be filed as required by local law. In the event that any tax afaatements or special exemptions are available on the equipment you wiil be le�sing from us, please notify us as soon as possible and forward the related documeniatian ko us. 7his will ensure that your leased equipment will be reparted correctly. Pl�ase indicate be�ow if you feel that your lease is subject to tax or whether a valid exemption exists, I agree that my lease is subject to saEesluse tax. I am exempt from salesluse tax and I have atkached a completed exemption certificate to Dell Government Leasing and Finance Program Ifl i have pre�iously pravided a cornpleted exemption certificate to Dell Go�arnmen# Leasing and Finance Program Ilk which is �alid for this transaction. I am �xempt from state tax buk sub�ect ta lacal tax. I have attached a completed exemption certificate. I have a valid abatement or property iax exemption (documentation attached}. If applicable to the tax rates in your state, are you outside the city lirnits or in an unincorporakec! area? Additi4nal comments: Lessee: City of Fort Worth �y; �� P � ��.�`�� Name: ��.�°'��'�� K e �b��_ � Title: ��.��,�'i� d,��' � �1 C�_ �-�- �. a� �ro� . ��r��r�: a _.. ..._`�`� ---�- - paie ��ity ��! M � e 5chedula 1 SEGURE� PARTY: Dell GoEfernment Leasing and Financ� Program III DEBT�R: � City of For# Worth This financing statement co�ers all of Debtor's right, title and interesk, wh�ther now owned or hereaffer acquired, in and to the equipment leased to Debtor under Property Schedule EVa. 1 dated 911 512 0 0 2 to that certain Masker7ax-Exempt Lease P�rchase Agreement dated as of 0911512062, in each case befween Debior, as Lessee, and Sec�red Party, as Lessor, together witn all accessions, substitutions and replacements thereta and therefor, and proceads (cash and nfln-cash), including, withoui limitation, insurance proceeds, thereof (but without power of sale}, including without limiting, a11 equipment d�scribed on Exhibit A attached h�reto ancE made a part hereof. Debtor has no right to dispose of the equipment, Ciiy o�Fo� Worth BILL TO ADDRESS: BILLING C4NTACT: First, M.I. and Last Name: Title: Phone Number: Fax Number: L�SSEE �TVO�CE T1�STRUCT�OIi�S PURCHASE ORDER NUMBER: Invoices requira purehase order num6ers: YES Purchase Order Number: FEDERAL TAX ID NUMBER: NO EQU�N�NT LOCATION �IF different from Biliing Address}: ADDITZON.AL INFORMATIQN NEEDED ON INVOYCE: Farm r��Ci Infarmation Return for iax-�xempt Gar►ernmental Qbligations � Under Internal Re�enue Code section 149(e} OMB No. 1545-0720 {Rev, November 2000) ► 5ee separate Instructions. pepartmen[ o[ the Treasury Caution: !f the issue rice is under $ 70D, OaO, use Form SD3$-GC. Internal Revenue 5ervfce P �.' Report nq Authority If Amended Return, check here �❑ 1 Issuer's name . 2 Issuer's employer identification number CTI"SC O�' FORT WORTI3, Z'�XA� 75 ; b00d528 3 Number and street (or P.O, bQx if mafl is not delivered to street address) 1040 THROCKMORTOI� 5 City, town, or post office, 5Cate, and ZIP c4de FORT WQRTH, TEICAS 76102 Rnomisuite 7 Name of issue PROPERT`Y SCHEDULE NO. l TO MASTER TAX-�s XEMPT LEASEIPURCHASE AGRE�MENT - DELL GOVEItN1VIENT LEASWG AND FINANC� PROGRAM ffi 4 F2eport number 3 �7 6 �ate oF issue U911512062 8 GUSfP number NQN� 8 Name and tit�e of officer or legal representative whom the IRS may call for rnora Informatian 1f3 Teiephone numher of officer or legal represernative JAMES R. K�YES, DIRECTOR OF FINANCE ( 817 } 871-8185 � ;. I Type of lssue {check applicabfe hox(es) and enter the issue price) See instructions and attach schedule 71 ❑ �ducatian , . . . . . . . . . . . . . . . . . . . . . . . . . 11 'i2 ❑ Health and hospita] , , , , , , , , , , , , , , , , , , , , , , , , �� 13 ❑ Transporkation . . . . . . . . . . . . . . . . . . . . . . . . . . 13 'I4 ❑ Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 'i5 ❑ �n�ironment {including sewage bonds) . . . . . . . . . . . . . . . . . . � 15 'f6 ❑ Housing . . . . . . . . . . . . ' . . . . . . . . . . . . . . . . � 16 17 ❑ Utilities . . . � � � 'F8 � Other. Describe ►��LL EMC STORAGE SYST�M � �g 19 If obligations are TANs or RANs, check box ►❑ If obligations are BANs, check box ►❑ �j��% 20 lf obligations are in the form of a lease qr inst�llment sal�, check box _.....�•� , � � Description of Qbligations. Complete for the entire issue for which this form is beinq filed, (a) Fina! matwrity date (b) Issue price (ej 5tated redemption (d) Welghted price at maturity average mat�riry 21 f 09/15/24D5 $ 2�4,724 $ NIA 3 years � lJses of Proceeds of Bond Issue {includin_q underwriters' discaunt) N/A 22 Proceeds used for accrued interest . . . . . . . . . . . . . . . . . . . . � z2 23 lssue price of entire issue (enter amount from line 21, column (b)) ...,....., � 23 24 Proceeds used for bond issuance costs (inciuding underwriters' discount) _ z4 �� 25 Proceeds used far credit enhancement . . . . . . . . . . . 2� � 2fi Proceeds allncated to reasonably required reserve or replacement fund .. 2� 27 Proceeds used to currentfy refund prior issues . Z7 � 28 Proceeds used to advance refund prior issues ........ z$ %//�'// 29 Total (add lines 24 through 28) . . . . . . . . . . . . . . . . . . . . . . � �� 30 Nonrefunding praceeds of the issue (subtract line 29 fram line 23 and enter arrEo[ant here) ... � 30 � ��crig�iQn of Refunded Bonds {Complete this part �nly far refunding honds,) 31 Enter khe remair�ing weighted average maturlty of the bonds to be currently refunded ...► 32 Enter the remaining weighted average maturity of the bonds to be ad�ance refunded ...� 33 Enter the last date on which the refunded bonds wifl be called ..........,► 34 Enter the date(s) th� refunded bands were issued ► � Miscellaneous 224,724 (�) Yield NIA 6.26 °/a years years 35 Enter the amount of th� state volume cap allocated to the issue under sectian 141(b)(5} .., � 3� -�- 36a Enter the amount of gross proceeds invested ar to be invested fn a guaranteEd investment contract (see instructions) � 3fia -fl- b Enter the final mat�rity date of the guaranteed investment contract ► �� 37 Paaled financings: a Praceeds af this issue thai are ro be used to malce loans to other governmental units �a 'a- b If this issue is a loan mad� from th� proceeds of another tax-exempt issue, check box �❑ and enter the name of the issuer ► and the date of the issue P ��A 38 If the issuer has designated t�e issue under section 265(bj(3){B)(i)(Ill) (small issuer exception), check bax ... �❑ 39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check i�ox ...__....... �❑ 40 If the issuer has identified a hedge, check box . . . . . . . . . . . . . . . . . . . ► ❑ Under penalties of perjury, 1 dedare that I have exatnined.this return and accompanying schedules and statements, and to the best af my knowledge and belief, they are cFue, c�rrecc, and eomplete. Slgn Here � G��7� � JAMES R. K�YES, DIRECTOR OF FINANCE � Signatu issuer's authorized esentaYive �ate � Type or print name and title Far Paperwork Fteduction Act Noiice, see page 2 af the ]nstructions. Cat. No. 637735 Form 8038-G (1Zev. �1-200oa � C'ity of'�'o�t Wo�th, T'exas ya' ��i ��ci� ��i�j��f�� DATE REFERENCE NUMBER LOG NAME PAG� 9/3IO2 **�-�� Q0�2-0240 1 of 3 susa�cT PURCHASE AND F'INANCING OF' STORAGE AREA NETWQRK SYSTEM FROM DELL C�MPUTER CORPORATION, AND DELL GOVERNMENT LEA5ING AND FINANCE CORP�RATIOf� FOR THE INFORMATION TECHNOLOGY SOLUT[ONS DEPARTMENT REC�MMENDATION: It is recammended that �he City CounciL• 1. Authorize the purchase of a Storage Area Network 5ystem from Dell Computer Corporation (Dell) at a cost not to exceed $224,868 far the Information Technolagy� (IT} Solutions Department; and 2. Authorize the City Manager to ex�cute a maste� agreement with Dell Go�ernment Leasing and Finance, Inc. for tax exempt conditional safe financing for the 1T Sofutions Department; and 3. Authqrize tY�e fax exempt condi#ional sale financing af the Sforag� Area Network 5ystem fram Dell Government l.easing and Finance, Inc. for a cast not to exceed $22,362, for a total three-year cost of $247,230 {equipment, software and financing) for ihe 1T 5olutions Department. DISCUSSION: Currently, the City's informafian technology network infrastructure is camprise� a� many indi�idual computers and call servers which run network applications and store various files. To su�plement ihe storage capacity of t�e servers, the IT Sofutians Department acquired a system in 1999 caHed Network Attached Sfarage, which is basieally a number of individual computer hard drives that �unction as if they were one hard drive. The main adwantage of this type of system is the farge amounf of inexpensive storage to supplement the storage installed in indi�idual ser�ers. This system is nearing the end af its useful life and needs to be replaced to take ad�antage of new techn�fagy that will increase the networfc's efficiency and security. The new solution is called a Storage Area Networ4� (5AN), which has numerous ad�antages aver the curreni solUtion, inclu�ing very high pertormance data transfer that is required to eff�ctiv�ly run saftware applicati�ns that use large dafabases, se�eral of which are planned for implementation during the next fiscal year. The 5AN is much more efficient than #he current solution in that the data stored on it can be backed up at any time, restored quickiy, and adding additianal s#orage can be dane without shu#�ing down the �ntire system. Alsa, the SAN efiminates #he need to buy larg� amounts of storage far individuaf netwark servers, which reduc�s fh� ac�uisition cast af each server by an average af $2,$aa (about $56,OQ0 per year at the current acq�isitian rate of 20 servers per year}. The City currently daes not have a significant amount of Defl-provi�ed nefwork equipment. As an incentive to purchase this equipmenfi, Dell will reduce the pr�ce of all personal compu#ers acq�ired from Dell by $100, a savings of about $9Q,000 per year at the City's curren� rate of personal computer acquisition. The City will not he obliga#ed to purchase any more networfc equipment to maintain this discount. C'ity of' �'o�t Wo�th, T'exas �r�� r�c�� i�a�i�� DATE R�F'EFt�NCE NUMB�R LOG NAM� PAGE 9f3/42 **P�9663 �002-0240 2 of 3 SUB.]ECT PURCHASE AND FINANCING OF STQRAGE AREA NETWORK SYSTEM FROM DELL C�MPUTER CORPORATION, AND DELL GOVERNMENT LEASING AND FINANCE CORPORATION FOR THE INFORMATION TECHNOLOGY SOLUTIONS DEPARTMENT Dell Compu#er Cvrporation is the single-source Qualified Information Systems Vendar for tf�e EMC SAN system configuration (hardware and sa'Ftware). The IT Salufions Depar�ment r�quest�d other u�ndors #a pra�ide quotes for functianally �quivalent SAN systems. There were na respor�ses fram other vendors. Financinq lt is recommended that the purchase o# the SAN be financed over a 36 manth period. Del[ Go�ernmeni Leasing and F'rnance, Inc. is offering a type of financing called Tax Exempt Conditional 5a1� that substantiafly lawers the finance costs for financed purchases ofi majar sys#ems oWer the traditional lease-purchase. O�er 36 months, this type of financir�g will save $37,732 campared to fhe traditional lease purchase for the SAN acquisition. The financing cosf for 36 months is $22,362, ma4�ing the total 3 year ac��tisition cosf a� $247,230. To take advantage of the tax exem�i canditional sale financ9ng, the City must execute a new master agreement with Dell Ga�ernment Leasing and F'inance, ]nc, td inc4rparate the appropriate cantractual terms and conditions. LJpan executior� af this new master agreement, the City wifl be able to tal�e adWantage af this financing option for future purchases when appropriate. Dell Computer Corporation and f]ell Government Leasing and �inance, Inc. ar� designated as Qualifi�d fnfarmation Sys#ems Vendors by the Stafe of Texas. lJnder Sec#ion 271.083 of the Texas Local Go�ernment Code, a loca� gavernment satisfies otherwise applicable competiti�� idding requiremenfs when it makes a purchase fhrough the State of Texas General Ser�ic� Gommission Catalague purchasing procedure established by Sectian 2157.a61 of the Texas Gfl�ernment Code. The City will comply with t�a� procedure for the purchase agreement authorized under this Mayar and Council Communication. MIWBE - A waiver of the goal fvr MIWBE subcontracting requiremenfs was requested by the Purchasing Division and appro�ed by the MIWBE Office because t1�e purchase of goods Es from sources where subconfiracting or supplier opparfuni#ies are negligible. Cit�s of �o�t Wo��h, T `exas y�� d ��i� ��r��af�� DA7'E R�FERENCE NUMgEft L�G NAM� PAGE 9131Q2 **�_�� 0002-0240 3 of 3 SUBJECT PURCHASE AND FINANCING O� STORAGE AREA NETW�RK SYSTEM FRQM DELL C�MPUTER C�RPORATION, AND DELL GOVERNf111ENT �EA51NG AND FINANCE CORPORATION FOR THE INFORMATION TECHNOL�GY SOLUTI�NS DEPARTMENT F15CAL 1NFORMATfONICERTIFICATION: The Finance Director certifies that funds are avai[able in the current operating budget, as appropriated, of the information Systems Fund. CB.n BQNla2-a240NVW Su6mitted for City Manager's Office by: Charles $oswell Originating Department Head: Jim Keyes 6183 SS17 FUNU 1 ACCOiJNT I G�NTER � AMOUNT (to) (fram) PI68 531530 0045040 $247,230.00 CITY SECR�TARY ` APPItO'V�D 09/03/02 AddiEional Information Contact: David Miller $781 Robert Combs 8357