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Home My WebLink About57-Purchasing CITY'" SAIl ....1WIiH~......-r FOR COUNCIIAcnoN Fnxn: . Dean R. Meech, Purchasing Agent Subject: Lease Purchase Master Contracts 1. Cityicorp North America 2. G.E. Capital 3. MNC Government Finance ~_~: Purchasing DIIt8: Synopsis of Previoul Council ectIon: ~ 5 1 " '- d 1.:- I ;::- --.I .:::1 None -.- - :0: ....J ~ ~l .t."' ~" '-.:1 Recomrnendld motion: . Adopt Resolutions. ~". -"4~.~ Signetu Supporting dIIta .tr...hld: Yes Phone: 384-5085 W.-d: NIA ConUlCt penon: Dean R. Meech, Purchasing Agent FUNDING REQUIREMENTS: Amount: 1-4{1\ Soun:e: IAcct. No.1 IAcct. DncriDtionl FinlllCl: ~o. leil Nollll: '~.n'A' Agen4~~6'0 s g- CITY" SAN _RNARDIN~ REOJEST FOR COUNCILClcTION STAFF REPORT The proposed acti on is for p 1 aci ng three (3) lease Purchase Master Contracts in place with the City of San Bernardino. This li brary of fi nanci ng partners already approved by the Ci ty and in pl ace wi 11 save an extraordi nary amount of time in the processi ng of lease Purchase transactions. When lease Purchase financing is solicited you have eager vendors who pursue the potential. which in itself takes time. But in the final stages the transaction is subject to corporate or portfolio directors attitudes. The results are invested time in bringing the bid process and final concluding actions to an end that can be negated by the vendors policy. This type of procedure serves no purpose. The best utilization of lease Purchase Master Contracts in place is to procure the equipment. then approxinlately two (2) or three (3) weeks before takedown of that equipment call several or all of our in place finance partners and get current interest rates . Current interest rates will be be good for thirty (30) days. Then simply add a payment schedule to the already existing in place Master Contract with the lowest interest rate. These contracts cost us nothing until utilized. The 1ength1y time it takes for legal to agree and approve the contracts before action can take place is already done. The City can move with dispatch in satisfying the departments equipment needs. As the contracts grow in number that are acceptable to the City our "range of competitive interest rates grows. The extraordinary tillll! to secure a vendor who may wash out due to certain circumstances is eliminated. Once lease Purchase Master Contracts are in place it is recommended the financing of equipllll!nt should be negotiable. not acquired through the competitive bidding process. lease Purchase is too important to overall operations of the City. Financing interest rates can and have been adjusted downward to the City's advantage. To secure our primary mission of best advantage to the City. financing must be a negotiable item. The three vendors for lease Purchase Master Contracts proposed for council approval are as follows... 1. Citicorp North America 2. G.E. Capital 3. MNC Government Finance 75-0264 The above three vendor contracts have been approved by the City Attorneys Office and returned to Purchasing for proposed Council Action. ~~ ~CL~J:i;:.. De" .:.", ....,-.."g g." .. - ,. jiif~~ . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . o o RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO ACCEPTING LEASE PURCHASE MASTat CONTRACT FOR G.E. CAPITAL FOR THE FURNISHING OF LEASE PURCHASE FINANCING. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. That Lease Purchase Master Contract from G. E. Capital, a copy of which is attached hereto and incorporated herein as Exb1bi t "A", is accepted by the City of San Bernardino for furnishing of Lease Purchase Financing; pursuant to this determination, the Purchasing Agent is hereby authorized and directed to issue a purchase order for said Lease Purchase Financing to said vendor; the Master Lease Purchase Contract award shall only be effective upon the execution of an Agreement by the Mayor of the City of San Bernardino and the tender of a Purchase Order by the Purchasing Agent. SECTION 2. This Agreement shall not take effect until fully signed and executed by both parties. The City shall not be obligated hereunder unless and until the Agreement is fully executed and no oral agreement relating thereto shall be implied or authorized. The authorization to execute the above referenced agreement is rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage of this resolution. SECTION 3. No transactions shall be initiated under the Master Lease contained in this agreement without the approval of the Mayor and Common Council. SECTION 4. The City shall not be obligated hereunder until a lease purchase schedule transaction for material, equipment, DR:ms\GECap.res July 5, 1990 1 _~7 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16- 17 18 19 20 21 . o o RESOLUTION OJl'THE CITY OF SAN BERNARDINO ACCEPTING LEASE PURCHASE MASIBR OONfRACT FOR G.E. CAPITAL FOR THE FURNISHING OF LEASE PURCHASE FINANCING. supplies or contracted services is executed with the vendor under this contract. SECTION 5. The Purchasing Agent, Director of Finance and the City Attorney are hereby authorized to execute such documents as are necessary for the administration of this transaction. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 1990, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ESTRADA REILLY FLORES MAUDSLEY MINOR POPE-LUDLAM MILLER 22 City Clerk 2311111111111111/11/1111 24 I I I I I I I I I I I I I I I I I I I I I / 2511111111111111/11/1111 I 26111/111111111111/11//11 27 28 DR:ms\GECap.re. July 5, 1990 2 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 251 26 27 28 I I - . o o RESOLUTION OF THE CITY OF SAN BERNARDINO ACCEPTING LEASE PURCHASE MASTER CONTRACT FOR G.E. CAPITAL FOR THE FURNISHING OF LEASE PURCHASE FINANCING. The forego~ng re8olut~on ~s hereby approved th~s day of , 1990. W. R. HOlcaab, Mayor C~ ty of San Bernar~no Approved a. to fOrlll and legal content: JAMBS F. PENMAN, C~ty Attorney .~. DR:III8\GECap.res July 5, 1990 3 - - - - - n.MSTI. 1/89 _1.._ _". .MG . o o UAIE IIITI lII'Tl_ TO ,,_- ~ '1It_-. Ie_ GEUD fllAICE _n_, L_ .... City of ... lerMrCIlno. .. L_ Dot'" .. of UAIE DAlE THII LIAII IIITH .n_ TO ".ClAII AIIII....T clet'" .. of LIAII DATI CtIle ~). ~.... 1Ie_ "I. Pl_ torpor.tlan. . corpor.Uan cNly 0I'IIft1........ _I.U", 1IIlde. tho 1_ of tile .t.to of DoI_.. I... C..-)'.... .. "'" i. Th... Caplt.I 0.1... lelIn ,...1.10. 111_. 55J44; .... tho City of ... -...Jlno. 0 polltlcol .-.Ivt.lan of tile ._ of Callfornlo.. 1"_ CL_). _. -... I. 30D .orth 0 St...t. Sen ,.rnordlno. COllfornlo 92411: IIITIISSETI: IIlUIAS. ~ I. _I.... ~ I.. to _Ira auch It_ of ~I ......-ft, .. ... noodIIII to -rr _ Ita _.....t.l f"""tl_. .... to _Ira auch poraanal propo.ty ~ anto.l", Into 1_ IIltl1 optlcn to purcllMo _il "".... __. L_ has deto..l,*, thot It I. nee...... for It to _Ira.... thl. L_ cortoln It_ of poraanal propo.ty _.1..... ~In .. ",I.,.nc, .... __. L_ 1,"1111", to _Ira auch It_ of 1...1.,.nc.... to 1_ t'- to ~ pul'II,IInt to thl. L_, IIlII THI"_. In tile Joint .... _..I .aerel.. of th.l. polIO... .... In conal_atlan of tINt _I ClI...... .....In contolnacl. tho portl.. herato .eclto .... OQ... .. foil....: MnCLE I OIFIIITI.. AID IXIIIITI ~Icn 1_1_ _Inltl__ unl... tile cont.xt oth....I.. .....1.... the t_ clefl,*, In thl. Ioctlan sholl. fpr .11 purpoa.. of thl. L_.. _ tile _I.... ho..ln _Iflod. Cont.ac.or: lach of tJM -.lacturo.. or -.. f.. _ L_ Cor L_ .t L_'. .....n has 0...... or lllll _. or lllth _ L_ Cor L_.t L.._,. .......U h.. cont.act'" or 11111 contreet for tho -.loeturo. dell...,. .ator lnat.ll.tlan of tho ..........t. .....1 -" Individually or collecU...ly .. tho cantoat .....1.... the poraanal proporty "1-,... froo tI. to tl. by L.._. llhlcll I. or lllll lie _.1..... In tho ottach... lahlblt A .. nDll 0. he...ftar c_tltut'" .... llhlcll Is 1101", or lllll be l...od lllth optlan to purchooo by L_ purouMt to thl. L_. flaot 01 _: Tho 1...1.,.nc lI.t'" ... ... .1",1. _ of L.... lahlblt A. FI....t ,_.: Tho tllOl... -.th fl.c.l po.lod of L.._ llhlch c_.. an FISCAL '1M IIGI. In ....,. yo. .... onda ... tho follOllI", fiSCAL JIM lID. 1-" ......1 -- .......1: An .ttorney ...ly _Ittod to tho practlc. of I... IIef_ tile hl.....t ~t of tho Itoto llho Is not. full-U. _1_ of Luaor or L...... Int....U Tho portlan of ... lentol P_t "Iptod .. .... _1.1... Into...t .. ..... In tho .ttached Exhibit I .. nDll or har_ftar constituted. lot P_: """ Insuranc. proc'" 0. c.......Uan ....rd. paid lllth roapoct to ...1...I.....t. .-Inl... .ftar poyoont th...f.. of .11 ...,.,... Incur.... In tho collect Ian thoroof. ....-__1'11...: Tho f.lluro of City of San I.rnordlno to Ipproprlat. _ for ... Pl....l 'oar of L.._ .ufflclent for tho conUnued porforaonco of thl. L_by L_ lllth roapoct to ... ....I.,.nc Group. .. ...lcIenood by tho poo_ of en ordlnanc. 0. ...olutlan .paclflCllly prohlbltl... L.._ f.. porforal", It. oblllltl_ .... thl. L_ lllth roapoct to .uch 1...lpaont G.oup. .... f.. usl... ... -..yo to pay tho lent.l P_to dua 1IIlde. thl. Lou. lllth rnpoct to auch I...ipaont ....... for . ..IInatod Fllc.l ,... .... III __t Flac.l ,..... P_t Olto: Th. clet. upon llhlch ... lentol P_t I. dua .... poyoblo .. provided In lahlblt , .. nDll or h....ft.r o_tltuted. Po..inod 1-....._... As of ... po.tlcular tl.: CI) 11_ for t_ .... ..1...1>.. .t. not then dell"",,"t. 0. ....Ioh L_ MY, pul"OllOftt to tho provl.l_ of SOCtlan 7.3 _f. po..lt to .-In ....Id. CII) thl. L_.... u . '" , - - -. - hereto, . L...... fnt.....C in the E"",t.-.nt, and. .,." -.cO,., laborer", _certal..,,-., .....It....~.. l'. or rllllt not filed or perf_ted In tM _r pr..crl_ by I.... ath.r then .., II.. .rl.l", through. CGntrector or ....Ich L"_ aIY. pureuent to Artlcl. VIII h.reaf. ptMllt to r...ln unpaid. 'rlncl...!: Th. portion of .., ....Ul ,._t de.l_ted .. prlnclplll In the .nached IlIhlbU I .. ,., or ~.r..ft.r constituted. PurcIln.lIDtlon 'rice: With r..poet to the Group of Equlpoent II.ted on .., pili of IIIhlbU A. . of thl ,_t D.t.. .poelfled In the _ of thl .n.ched Ellhlblt I r.l.tlng th...to. the -..rot .0 dnl_ted - ..t forch """,,"It. each .uch dlt. In .uch pili of the .tteched Ellhlblt I. ...t.1 ,_to ThI pt_t ... f..... L..... to L.._ on .ach ,~ D.ted _I", thl T.MI of chi. L_. .. MOM! on Ellhlblt I . ,., or h....ft.. canaUtuted. Soeciflc.tlana: Th. bid .poeiflc,Uona wdlor pur_I order pureuent to which L.._ h.. ordered.., Equlpoent f..... . Contractor. l1ISI: ThI IC'c, of C.lifornl.. SUt. _ '_r.1 L... or L....: Th. CanaUcutlon _.., I... of CM IC.c, _ .., chlrt.r. 0...11_. rul. or ......1.Uon of .., ~ or pollUcal IUIldlvl.lon of the IUt.: _ .., I... of tM unlced IC.c". _ .., rul. or ......I.clon of .., f_r.1 ~. T.MI of chi. L_ or L.... Teno: ThI ptrlod _I", ....Ich thl. L_ I. In .ffect .. IptClfled In Section 4.1. Section 1.2. IIIIollllc.. TM followl", IlIhlblt. ere .nlchld to _ by ref......... IIde . ptrt of chi. L_. hhlblt A: A _I. deecrlbl", CM Equlpoent _I", I_ed by L.._ pureuent co thl. L_. Inclulll", chi ..rl.1 nuablr thlreaf ....Ich IhIIl _ I_ted ...... 1Y.1I_1.. Iuch .chedul. c......I.I'" . ....... of ...... ,..""Ill' red c_Uvely ..IMI", "Ith A'I. _ _ pili cont.lnl", the _Ipclon of .11 lqulplllllc .......1.1'" en lqutplllllt lroup. Exhibit I: A Ichedul.' to _ _I.ced by L_ u provided herein _ furnllhed co L_ .. provided In ....clon 3.2. c......I.I'" ...... co _ cana_lvely nuablred ..IMI", "Ith I-I. _ .ech pIIII co conc.ln Ch. dec. _ _ of _ lencol ,._t COIl", ... durlns thl L.... T.MI "Ith r_t to the Equlplllllc Group lI.ted on thl corru.. wll", pIIII of IlIhlblt A. the _t of _ ...t.1 '_ta c......I.I'" 'rlnclplll _ Int....t. _ the prlc. .c which Lu_ aoy .......1.. Ita option co pur_I L_'. Int....c In _ Equlpoent Iroup In _ordene. "Ith ArUcl. X. TM'" dec. of _ I..col ,_c IhIIl _ IM.rted on Ellhlblt I by L...or ...... IY.Habl.. Exhibit C: A fOt'll of C.rtlflcu. of AcCept_. of L..... IndlcaU", CMt tM Equlplllllt Iroup deecrl_ Chereln ha - delivered _ lnat.lled In _ardene. "Ith th.lptClflcatlona. _ hU _ eccepced by L_. the decoon which lenc.1 '_t. MOM! In the pili' of Ellhlblt I rel.clns th.reto IhIII c_.. _ th.t c.rt.ln other roqul..- hew _ .u by L_. Exhlblc 0: A fOt'll of opinion of COUnIII to ,L"_ .. co the or_lz.clon. nacun _ ,....,. of L_: ch. validity. .x_lon _ delivery of thl. L_ _ v.rl_ r.l.ted d.. -t" the ..... of IIcllOUonl _ rel.ced .nora. Exhlblc E: A fOt'll of r_lutlon of thl _rnl", body of L.._ rel.U", co ch. L_ _. If epptlClblo. carc.ln f_r.1 cu .n.r.. Section 2.1. foil....: AlTla.E \I _.ATlGI. lDIEIIAIITl _ ~1I1 .... --.tatt... Ca _.tA.... .....nntl_ IIf . --. L.... r.,. 1I1nt1, ~. Ind ..rr..ta .1 c.) L.._ I. . ...Iclptl corporulon _ pollUc.1 IUIldlvl.lon of chllc.t.. duly ~iled _ ..I.clns under the ConIUcutlon _ 1_ of chi It.t.. Cb) LU_ I. outhorlaed under Ch. ConIUcutlon _ 1_ of CM IC.C' co ..ter Into chi. L_ _ ch. tr__clana cant_l.ced MrIby. _ co perfOt'll .11 of Ita obllllclona hlreunder. Cc) ThI officer of L_ _Ins thl. L_ ha _ duly Iuthorlaed to _. _ deliver thl. L_ under , the t._ _ provl.lana of . NIOlutlon of L_'. _rnl", body. or by othlr ...proprl.c. offlcl.1 ecUon. Cd) In Iuthorlzl", _ _I", chi. L_. L_ ha _lied wdlor IIIlI -,y "Ich .11 public blddl", ..... othlr Stu. _ f_r.1 L_ .,..11..1. to thl. L_ _ the ecqul.IUon of the Equlplllllt by L_. C.) L_ "Ill not pledla. _t_ or ..1., chi. L_. or lu _I.. _ obllllclona h.reunder co.., othlr ptr.on. flMl or corpor.tlon ..cept . provided under thl Carll of thl. L_. Cf) L_ "Ill UII chi Equlplllllt _Ins the L_ Tono only to ptrf_ only _1.1 _~.I functlona. CI) L.._ "III talc. no ectlon Ch.t -.Id _ ch. Int.rut portion of the lenc.1 ,~. to ..... Inclulllbt. In ,r... Inc_ of the reclplenc for f_rel 1_ tu _ under the Int.rnal ._ _ of 1986 Cch. _) _ T...eury ._I.tlana proeulllted th..eunder (thl ._I.tlona>. _ L.._ "III calc. _ "III _ it.offlcore. _Ioyoee _ agent. to t.t. .11 .ffl_tlve actlona 1_lIy "Ithln Ita power _ry to enaun thet the Int_t porUon of the lent.1 ,~. _ not bec_ Includlbl. In ,roe. Inc_ of the reclplenc for f_r.1 1_ tu _ under thl _ _ ._Iatlona. Ch) L.._ 11111 ..... or .Ilow no ut. of the lqulpoent or .., portion th_f th.C -.Id _ thl L.... co . ....- . "prlvat. property _ "Uhln thl _I", of the _ _ 1_I.clana. CI) Upon delivery _ lnatell.tlon of .., Equlpoent Group. L_ IIIlI provide to L...or . c~l.ted ..... .xecuted copy of . C.rtlflc.t. of Accept_. rel.tlns thlr.to In the fOMl .nlchld hereto II Exhibit C. (j) Upon ch. .xecutlon of thl. L..... L.._ "III provide co L..lOr en opinion of it. 1...1 COUnIII In the f_ .neched hlreto II Ellhlblt D. 2 - . Ct) L_ "Ill __Ie Co CIIe ....... of chI ~ on Info_cion ........cl... .c.c_ .. U. - In the f_ "-I.... by Che Code _ CIIe 1....I.CI_. . CI) L_ "Ill ...... ......Iuclon _concl.lly In che fo... .nKh... hereCo" EllIllble E Co be ecIapC"'by lco ~I... body "teh "-c Co .., lqul_" ..... _J...c her.co. Sectl.. 2.2. - .6A......e.. .. ...~.I_d'I_ of l--. Lnaor 'epleNI'lU, "......ac. end.......... _ foll_. C.l L_ I. . corpor.clon duly .....11.... ..I.U... _ In eood .C_I... llIlIIor _ by virtue of the 1_ of chI .t.t. of D.I_r.. _ to duly ....1If1... _ In eood .t_l... .. . for.11ft corpor.clon 1llItIIor1a... Co tr_t ....1- In chI .c.c.: h.. _r Co on.... Into Chi. L_: I. ........... of full _r Co __ _ hold ...1 - _I ...-rey. - Co 1_ the _: _ h.. duly 1llItIIor11'" .he _Ion _ delivery of Chi. L_. Cbl ..Ither the _Ion _ delivery of chi. L_.. nor che fulflll_ of or coopllonco IIlth the t_ - condlcl_ Cheroof. nor Che COIl -Uon.f ChI cr_tl_ cont....I.C... therelly. cantllcco IIlth or reoul.. In. broocll of the C...... condltl_ or provl.l_ of ony ...trlcclon or ony ....-t or Inst..-c t. ....Ich L_ I. ROIl . porty or by ....Ich L_ I. bolnI. c_tlcut.. . defoul. under ony of the f."-I.... or reeul.. In Che _.Ion or 1...1.lon of ... lion. __ or oncuobronco .....c._r upon ....f ChI .....rey or ...... .f L_. or upon Che lqul~ ucept ........... ......-. AlTIa.E III LIAIE Of ECIIII'IBIJ _Ion 5.1. --oI.lclon of .... ..t...... durl... the t_ of thl. L_. L_ ..I.... to 1_ ........ of "'I~ f... L_. L_ ohell .....t .. L_. witton order thorofor In f_ occoptObl. to~. _....11 ..... ~ In wlU... of the ..I.... nuober of _I Pow-nco t. be..... IIUh "-t thorot.. .........'" of ........... ~...." ..... L_ In wlU... .f IC. __ In CIIe 1_ .f Che _..Ipoont ...... _ the nuober of _I ......a. or If It ... not c_ In .he _r .f 1_.1 Pow-nt.. CIIe ...1_ nuober .f lonC.1 Pow-nc. L_ 11111 .11.. lit. I'IIIIICt to tIle....~ ..... "'rlllocl In .h........ _hi... herein ..11 abllIlC. L_ t. 1_ ... ",I~ to ~ until ~ ....11 .... .. c_r'" In wUI... to the 1_ .f ony _..Ipoonc. ..... ..r_c by L..... _ L_ .. the 1_ .f tile ....__ ..... _ Co Che _r of 1_.1 Pow-nc.. L..... Cor L...or .c L....... requooU ohell order the _..I~ lIroUp f... the .....f...tur.r or .....,...turoro CIIIIroof _ noclfy L_ In "'tel... of tho lqulpoont _t _ the ...I_tecI del\..,. pori.... _Ion 5.Z.'" ..t ...,_ - ~t'on. L.._ ohell furnl'" t. L_lOIIjIleted ..I.. of bIt'blt A -. rel.U... Co .Kh E..I~ ...... Upon dell..,. .f ony E..lpoont 'roup. L..... ohell 'nopoct ..... ....~. _ If ..... E..I....t _co L....." .....1f1...I_ conc.lned In tho order _ bid r.I.CI... Chere... ~....II "'thln ..... (II ....,- deyo f... the dec. of delivery .f the lqul~ lIroUp provide Co L.._ . cooptot'" _ _lllI copy of . c:ortlfl.... of Accoptonce rel.U... Cherot. In the f_ .Ulched hereto.. EllIllblt C. If L_ hoe not furnlollad to L_ . Cortlflllt. of ,....... IIlthln ouch three-day porlod. L_ ohell be ...... c. hove occopted the .....~ ....... .. tbe I11III tlleroof ohell _ obllllCed to poy lont.1 Pow-nt. IIlth "-tOther.to. 11..lt_ly IIlth tile dell..,.. L_ I11III ~....U toko .11 ectl_ _..ry to _t I_I UU. t. the E..lpoonc ..... In the porty opoclfled In _.Ion 1.1 herwf. I11III .. porfect . _ley IM_t th.reln In f_ of L_ or . poreon. f1... or corpor.clon ..I"".. by It. _Ion 5.5. ~_ L_ h.roIIy 1_.. .11 E..I~ ..... _Joec Co thl. L_ to L_. _ L_ hereIIy 1- ouch "'Ipoonc f.... L.._. upon .he c._ _ condlcl_ ..c forth In chi. L_. _Ion 5.4_ P- - Ion _ Enl .t. Loooor h.reIIy c_co t. provide L_ durl... the T_ of this L_ IIlth ChI ....t uo. _ onJ-' of the lqul~. _ L..... ..11 durl... tho T.....f thl. L_ p.......ly _ ..Iotly .... _ hold _ onJoy the _..Ipoont. IIlthoUC oute. troubl. or blndronce f... L....r. ..copt .. IIpI'IIIly cot for.h In .111. L_. L_ 11111. It the requoot of L_ _ .t L_'. coot. Join In ony I_I ...tlon In ....Ich L_ ....rco I.s rl..... to ..... ...._Ion I11III onJ~t t. tho ...ont L_ IlIIfully -.y de ... _tlon 5.5. L - to _I .t. The L..... ..ren thoC L_ ohell hove the rl....t .t .11 r I 1Ib1. tl_ to ._Ino _ Inspect tho lqul.....c. L_ further osr... thot L.._ ohell hove..... rl...... of _ .. the lqul~ .. -.y be r.........ly nee....ry to ..... ChI pr....r .Inc_. of tho E..lpoonc In Che _ of f.llure by L_ to porf_ Ita abllIlCI_ h.rounder. AlTIa.E IV _ Df TIE LEAIE _Ion 4.1. L---- ,_ 'hi. L.... ..11 be In .ff...c for . ,... c-.ol... ..... It. det. of _Ion - _I... .. provided In _tlon 4.6. _.Ion 4.2. '__I........ ---. In the ..I. ovent .f _...P'.... Istlon relstl... .0 ... portlcul... lqulpoont lIroUp. L_ ohell hove tho rl....t t. ._IN.. thl. L_ IIlth roopoc. .. ..... lqul~ Group. .. tho _ of ... .....1 ,.... of L...... In tho _r _ -J"', .. the ...... opoclfl'" In thl. leetlon I11III _tl_ 4.4 I11III 4.5. L_ -.y .ffect ouch t...lnstlon by Ilvl", L_ s witton no.l.. .f ._INtlon IIlth roopoc. to ..... ...~ lIroUp ond by poyt... t. Loooor ... __.1 Pow-nta _ oth... -..c. IIlth reopoct .. ..... E..I~ ..... ....Ich sre duo ond .... not beon pold .t or bef_ the _ of Ita thon curront f1..sl ,..r. L_ ohell _ to live notl.. of ..... t_notlon not I... thon .Iaey (6D1 deyo -lor to the _ of .uch '1...1 ,..... _ ..11 notify L.._ .f ... _Iclpoc'" ._INllon. In the _ of ._Inotlon .f i. L.... IIlth roopoct to ony _..Ipeont lIroUp .. provided In thl. ....tlon. L_ ohell deliver ...._Ion .f ..... E..lpeonc G.... to L..... In Ie." _... IIlth leetlon 12.3. _ ohell convoy t. L.._ or rel_ Ic. Int....t In ..... ...Ipoont ..... "Itbln (IDI deyo .ft.r c_noclon of Chi. L_ IIlch "-t to ouch lqulpeont lIroUp. leett... 4.3. 1___ ta ......... L - -- T.ne a .-ol 1.lt... L.._ prHIntly Int... to conti... till. L... for Ita 3 antlre .. "Ith r_t Co .11 1",I_c Groupo "'IOCC h'O.... Co POI' .11 lanc.1 ,_co r.I.CI", O.co .poelflod In .1Ih1b'ft"1. L_'. "III Include In lco ......t r_t for .... floal ,_. tho 1_.1 ,~. Co __ _ In ....... 'IIC.I '..r "Ith rupocC Co .11 I",I_C Groupo. ond "Ill ... .11 r.......I. onct IMUI _ ....11..1. to _. ch. .~~rcl'" I.Clon of _ for .uch ,I.c.i '..r .ufflclanc to POI' .11 ....... lanc.1 ,~. c.l", _ .Ch.r.ln. L_'. r...""ly bell_ Ch.C __ In an -.nC IUfflcl_ Co _. .11 ....... lanCOI ,_to can onct "III I...fully be """,oprl.Cod ond _ av.II..I. for thl. pII'pOIO. SOCtlon 4.4. Iffect ef '_nation. Upon c...lnatlon of thl. L.... "ith rupoct to any 1",I_t G"- .. _1_ In Soctlon 4.2. L..... oh.1I not be r__Ibl. for Ch. po_t of any _Itlonal lant.1 ,~. .'I.tl", thoreto c.l", _ "Ith rupoct to IUCcoocil", 'I.col ,..... buC If L..... h.. not .1I....1d ~....Ion of ....... .",I_t G"- to L_ In accordanc. "Ith SOCtlon 12.3 onct c............ to L...or or r.I.._ lCO Into...t In Ch. I",I_C Gr_ "I thin tan (10) *Yo .ft.r tho t...lnatlon of Chi. L.... "Ith r..poec th.r.Co. Ch. c...lnaclon .h.lI novorCh.I... be .ffoctl.... but L_ Iholl be r__Ibl. for Cho poyMIIt of. I" In an -.nt .....1 Co Cho -.nt of Ch. lant.1 ,_to t_ft.. _I", _ _ tho pogo of 11Ihlblt I r.l.cl", th.r.to which .r. .n.lbut..l. Co tho IlLIIIbar of *Yo .ft.r ....... tan Cl0) _ period ul", which L.._ f.lI. to take ....... octlono onct for any och.r 10.. IUff.rod by L...or .. . rlOUI t of L_'I flllura to tako ....... octlono II r_l.od. _Ion 4.5. III "-tlturl... If thl. L.... I. t...lnatod by L.._ "lth rupoct to "" -"I_t 1"- In .eu ..._ "Ith SOCtlon 4.2. L_ ..... not to purch.... 1_ or .ant ........1 .....rey to ...rf_ tho _ functlono _. or funcclono . tiki", tho pl_ of. thou perf...- by ....... .",I_t G"-. onct...... not to .....It ....... funcclono to be parl...- by It. own _1_ or by "" _ or antlcy .fflllatod "Ith or hlrod by L...... for. period ef thrft ......... Ilxty (360) *Yo: _1_. howovor. that thuo ...t.lctlono oh.1I not be oppllc..l. In tho avonc tho .",Ipoant G"-....lI be IIleI by L_ onct tho -.nC recol_ fr. ....... NI.. 1....11 coat. of ....... NI.. I. IUfflclant to pay tho than oppllcobl. ........... Option Price r.hitl", th.rato .. ..t forth In 11Ihlblt I; or If or Co tho .xtanC ch.t Ch. _lIcoclon of Chou r..trlctlono wwlel .ffoct tho vollellty of thi. L..... _Ion 4.6. T...I_I.. ef L_ Ter8. Th. To.. of thl. L.... "III co..lnato upon tho occurrone. of Cho fl..t of tho fOllowl", avont.. C.) Ch. t...lnatl.. th....f by L..... "I th rupoct to .11 e..,lpoant Gl'oujlI In OCeG ..._ with SOCtl.. 4.2: (b) Ch. ..orel.. by L"_ of it. option to purchoIo L....... InC_t In .11 1",lpoant lroupo purouant to Artlcl. X; (c) . .foult by L.._ with rupoct to .11 .",Ipoant Groupo onct L....... .Iectl.. to t_nat. thl. L_ "Ith r_t to .11 .",Ipoanc Groupo pul"IUII\t to A.tlcl. XII: (eI) tho poyMIIt by L_ of .11 lanCOI ...-CO onct .11 oChor -.nt. _.lIod or r_lrod to be ...Id by L"_ hor_r "ith r._t Co .11 1",lpoant Groupo. UTla.! V IOTAL PA'/IIEIIlS SOCtl.. 5. T. _I'" oL.. L.._ ...... to pay lant.1 ,_to ul", tho T_ of thl. L_. In dlo __ onct on tho .t.. _Iflod In .1Ihlblt I. . All l..t.1 ,_CO Iholl be polel to L..... .c It, offl_ It tho j.r _ apaclfllel In tho fl..t ...r..r. of thl. L_. or to ....... It.... ...reone.) or ..tltyCl..) to whl. LIIIor ... ...1....1UCIIl ..... ,~ II _Ifllel In Arelcl. XI. at ....... pl_ _ ....... ...1_ aoy f.. tI_ to tl_ _I_t. by witt.. notice co "-. ~ oh.lI pay tho Rantal ,_to _IUlI...ly. f.. __ I_Ill' .vollabl. thorofor. In llIlful _ of tho ....tIcI ltat_ ef _rico. to L_ or. In tho _ of ...I_t of tho .ItIIIt to .oc.I.. _II '-'I by L_. to Ita _I~,). Into...t with rupoct to tho I_I ,~. for "" I",Ipoant G"- Iholl ICCI'UI f.. tho flrot _ of tho col.... _ In which tho Clrclflcoto of Accoptonc. relatl", to ....... .",I_t G"- I. uocutod. _Ion 5.2. r:urr.K' _. Tho'obll..tl_ of L.._ _ thl. L_. Incllllll", It. obil..tl.. co pay tho _.1 ,~. _ "Ith ._t to tho I",I_t. In any 'Ioal ,... for' which thl. L.... I. In .ffoct. Iholl _tIM. . -..nc ........ of L_ for ....... ,Ioal 'ur onct Iholl not c_tltut. .. I_tldnall of L_ within tho _I", of tho ConItltutl.. onct 1_ of tho Itat.. Nothl", horeln Iholl conotltut. . pi... by L.... of "" c_ or at.... __. othor than __ IMully opproprlatld f.. tI_ to tl_ by or for tho _fit of L..... In tho annual bucIaot of tho .... tho "'.c..... or ..t ,r_ of Cho .",Ipoant. to tho'po_t of any lantal ,_t or oth.. -.nt _I", _~. SOCtlon 5.3. 1_'" _4. A pertl.. of .... lanC.1 ,._t I. ...leI II onct roprooant. tho jlIyMIIt of Int_t. ElIhlblt I lit. forth tho Int_t C''''''IlII,t of uch l..t.1 '_to SOCci.. 5.4. _.. PI_d. to be _1t1_1. IXCept.. _1_ In Section 4.2. tho obll..tI.. of L_ to .to I..C.I ,_c, or any othor ...-CO r_Irlel her_r oh.lI be oboolut. onct _Itlonal In .11 _co. _ICh.tonctl", any ell.put. beCllIIft L..... onct L..... or any oCh.r ...r.... L.... oh.lI Mko .11 l..t.1 ,-,. onct at.... ....-,t. .....Irod h...-r when _ ond oh.1I not withhold any lantal ,._t or OCher _t pondl", final r...lutlon of....... ellaput. nor .h.1I L..... ....re any rltlllC of "c'off or count.rcl.i, .,.inot Ita obll,.tlon to _k. .uch lant.1 ,._co or oCh.r...-co r_irod ....r Chi. L..... L....... obll..clon Co _k. lant.1 ,_co or othor ..._CO uI", tho L_ T... ....11 not be ....tlel .ough _Ielant or unfo...oon clrc_tone... H_r. nothl", horeln Iholl be conotruacl to rel_ L_or f.. tho ....fOl'lllllCl _of IC. oblt..cI_ h.r_r: onct If L...or ohould f.lI to parf_ "" ....... obll..tlon. L.._ aoy lnatltut. IUCIIl I_I octlon ...lnoC L....r .. L"_ aoy .... nac....." co cOlpaI Ch. parfo_. of .uch obll..tlon or Co roc_r" 'II thor.for. 4 - . .~~o 0 I-lIMP _ IIllI.IIBIZ _Ie 6.,. L1_lItv I __a unl... ..If' I........ I. provided'" L.._. .. evlcllnced"', wlttlll cenlflcet. .....Ifyl... tlIe _ _ _. tIIeNef .11...... t. L...or. ....... ._Ipt of .....-1.... of "'1liliiii. L_....lL t........ _ .. .., lie n......ry to __ tlIet .., I I_I I lqo for Injurl.. to or dntll of .., ........ or ..... .. .. 1_ of properqo ,.1.1... out of .. In .., .., ..Ietl... to tlIe c_IU.... .. t'" oper.U.... of the .",1liliiii .. .., .... tlIeroof. I. co..,.d .., . blanket or otller _.1 II_Ulqo 1...._ policy _Int.lned .., L_. Th. lot '" ,,"tl of .11 .... 1_ .1L be lIllPI led t~ ..tl...l..... or ..tl.foctl.... of tho II_U ICV ..Ith .......t to which .., lot ,...... .., lie ..Id. _Ie 6.Z.... ~ ..__...... Upon.....pt of _...1.... of lOCh .",1liliiii. L_ ....11 .... _ _ tlIe .11k of I... ..Ith _t thlroto. UIll_ ..If. 1_ I. provided .., L_. .. ..,1-.1 .., 0 wlttlll cenlfl_ epeclfyl... tho t.... _ _. thoroof .11__ to L_. ~ ....11 procuro _ _Intoln _I_IV In offoct ...1... tlIe period _ L_ I. ....1... to..... _1'-" ..1111 ......t tho..... .1l..I.k 1...._. ""oct _y to tlIe _....11_11111_ cont.lned In tlIe policy. In.... _.. ..Ill bo.t I_t aufflcl_ .. tlIet . el.I..., lie.. for tlIe full npllll It_t of .., ...t tlIeroof. ..11 or dIIt...... GIld to PlY tlIe _ leeblo ............ Optl.... ,.Ico of tlIe ...1..... .... I...... .., be provided .., . .lcIer to III ..Iltl... policy or ..... 0 ......... pol Icy. .... 1_.., lie wlt_ ..ltlt _I . ...tlWo _ta. Tho lot 'roc... of 1_.1Ce ......ed.., till. IOCtl.... ....11 be lIllPlled to tlIe pNlIpt ....1.. .......tl..... ....lfleetl..... 1.0.-.... npl_. .. ....... of tlIe .",11IIIIlt .., L_. . IOCUe 6.1. l1li_' - rIM I .' If ........ .., ltata I.... GIld lIIt_ ..If' 1_ I. provided .., L...... .. evldMCed .., 0 witte ..lflcota .....Ifff... tho t.... _ _ta thoreof .11__ .. L_. L_....ll carry _..'. e.......U.... 1......_ _I... .11 ....1.... e. In. NO' or ......t each .""'..... GIld Upon ......t. ....11 furnlell to L~ cerUfleet.. evldMCl... ...... ._._ tit........... the ...Iod _ L_ I. ........ to ..0 I_I PI...I. ..ltII .......t thoreto. IOCtl.... 6.4. --.t. ..& ... All 1_. All lne....... pollel.. Cor .1...) ....1....., till. Artlel. ....11 be t... out _ _Inc.lned ..ICh roepenelWo 1_.... ellllllOl\toa ......Iaed.... tho 1_ of _ of tlIe at.t_ of tlIe united ...t_ _ .,.llffed to dO bull.... In tho Het.. _ ....11 _.In . prwl.l.... thot tho lneurer _II not _I .. .....1.. co..__ t......... ..1_ ,Ivl... wlttlll noUco to tho lneured ...U.. .t I_t. till (tD) cIeya 1Ief_ tlIe _1L1t1.... .. .....1.1.... ___ .ffICUvo. All 1_.... pollel.. ....1....., ...11_ 6.1 _ 6.2 ....11 __ L_ _ L..... .. lneured ...tl_. _ .., 1__ policy ....1... .., ...tl.... 6.3 ehell _ L..... .. lneured ...tV. L_......lL.....1t ..ltIt L_ pollel.. C_ .1...) evldMCl... .., .... 1__ pr........ .., It. 0. . e.rtlflce.. or ...tlff..... of tlto roepectl... lneurera at.U... thlt .... I.......... I. In full forn GIld .ffICt. Iofore tlIe ..I.ltl.... of .., .... pol Icy (.. .lcIer). L_....lL furnlell to Il1O/' evldlllCl thlt thl policy _ .... ,.."....11 .. ...lInll .., _thor policy .....f.... to tlIe provl.l_ of till. A.U.I.. ...1... IUcII 1_.... I. no 1_ .....IIlIIlI. In wh.... _t L_ ....1L notlfv L_ .f thl. foct. _I.... 6.5. I I. -._. L_ _.1L .1.... GIld II_UIU_. IIhIthor or not co......., 1_. for I... .. ..... t. .., .",11IIIIlt GIld for Injury to or dIoth .f .., ........ .. ..... t. .., III r ty. In.., _ ..1.1... out of or Incident to .., _...1..... l1li. .....tl..... ._Itl.... or It..... of .., E",lpeent .., L...... IIhIthIr .... In'ury or dIoth be ..I th .......t to .....to or ....1_ .f L..... .. of till rei ...U... _ _t"', IUcII properqo ..... be to ~" propeI'ty 0. tho properqo of oth.... LulH...... ..e.-. .........lbUltv fo. _ ...... t. I.....,Ify. protoct. _ GIld koop hInIl... L"'or frae _ _Inet .., .11 1I_IIIU... _11...1_. I...... . .... pIIIIltl... .1.1_. octl_. _U GIld . P ... Clncludl... ..........1. .ttOl'M\'" f_) of wh.t_ klnll GIld nlture. I.....ed..... Incurred.., or .._ted ...I..t L_ thlt In .., IIIV ..I.t. t. 0. ..1.. out of tho ......1..... ..... .....tl..... .-dltl.... or It__ of .., .",Ipeenl .., L_. YlI_ ._ .., L_ or Ita ~. t. tlte _1_ 8t_ .....Itted .., I.... _I.... 6.6. - to.. ~Ie of'-' .1. If .ft.r .1I...ry.f .., "'Ipeent to L.._. IIlCll "'1..- I. I..t. atolen. dIItI'O\'ICI or' ..11 ~ ....1.. L_....ll _ ...... .. proctlc_l. ofter .... _t .Itherl CI) npl_ tlIe ... It L.._'. 101. COlt _.___ ..Ith E",lpeent of _I or ,..ater vel.. to tho 1",lpeent 1_IIt.ly prior t. the tl_ of the I... ..cur...... IUcII ....I.._t _Ipeent t. be _jICt to L....... ....oIlIIlI. ,..r_l. ~ tlIe npl_ _II be "t!tuted In lhl. L_ by J... I.t. .Idoru..."; or CII) PlY tho _lIc_l. Purchue Optl.... '.Ic. of tho ..,1..- .. .et forth on ElIhlblt I. L.._ wll notlfv L_ of which ....... of octl.... !t ..Ill t.... ..Ithln flftHn (15) cIeya .ft.. tlIe I... ..currenc.. If L.._ f.lI. or ..f.... to notify L...or IIlthln thl ....1... ...Iod. L_ _. It III optl..... _I_ thl __ Optl.... ,.1.. -,I_I. t. the .",1"- ..t fo.th on IlIhlblt I 1_let.IV dill _ peyebl.. _ ~ Wll be obll,ated to PlY th..... Tho N.t ,....... .f .11 1......_ peylbl. ..I th ......t to the ..,Ipeent Wi I be _I I_I. to L_ end elI.11 be UIed to dl_... L_'. obll..tl.... .... till. ...tl..... on...-t of tlIe Purchue Optl.... 'rico. thl. L_ ....11 no 1.....1' lIllPIV to thl E",11IIIIlt _ LMHo th.......... _II beco-. entitled to the ",Ipeent AI II. 1I1T1IllIT lMIIllIITl.I. EXPIEn 01 IIN'LIID. INCUIlING _Tl.1 OF ..ICIWITAlILln 01 ,IT.... '01 AllY 'AlTlCULAI _ 01 'ITNI.. POI T. UII CClIII......TID IY LESSEE. .xcept that the E",lpeent elI.11 not be ''''ICt t. MY lien or ........._ ....ted by or ..1.1... thl'OUlh L_.. AlTI~ 'II _ DlLlliATI. OF ~ _I.... 7.'. .-. _II. L..... _II ...erel.. dill c.r. In tho 1..IIII.tl..... ..... ...r.tl.... GIld _Inc_.f tlIe E",lpeent. _ elI.11 not I..toll. ..... operet. or _IM.ln thl "'Ipeent I........IV. ....I_IV. In "1.1..1.... of .., H... GIld Fedor.1 L... or for . pul'poIO or In . _ .....t.ary t. thlt c....t....leted .., thl. L_. L_ oltell .....In .11 .....111 GIld 11_ __ry for t'" lnellll.U..... operetl..... .......1.... _ UIO .f thl 1",1..-. L_ _II -.Iv ..Ith .11 lIet. 5 end,..a L_ _11...1. co Ch. Inn.lI.tlon. .........Ion o..'.Clon of ch. Equl_c. end If .-110 ..ICh..,...... SC.C.~ ~"".I L... '_1'.. ....... 0' _lcl_ co be _ Co Ch. _i_C. ...... ch_ 0' _ltI_ oholl be - by L"_ .C IU __.. -.ct'.7.2. ..tMldllil.....o::l~ fI' hut .R tw L__. L..... Ihall, at itl OWl e.....e, .tntatn, praMI"W ... keep the Equl.....C In...... '_1'. wo,tl... orde, end .ondltlon. end .h.1I f,. cl.. Co cl.. _. .11 '_1.. end '.1_. ........ry '0 t_ ch. Equl_c In...... .ondltlon. L...or ..11 h.". no ,..ponolblllty fo, MY of Ch... '_1.. or ..I_U. sectlan 7.3. T--. DtIIer GA.I.._.t.t- ChaI..... Md Utility CIIa..... Except.. eapr.aty ".ited by thie leetlon, L..... .h.1I poy .11 C.... end OCher ch...... of .., t1nd whl.h .,. .C ony CI.. I...fully ..__ 0' 1...1.. _Inn 0' ..ICh '._C Co Ch. Equl_c. Ch. ....c.1 ,._U or .., po,C ch.,oof. 0' which bK_ _ ""'I... Ch. T... of Chi. L_.. whether ..__ _Inn L.._ or L...... L.._ ..11 .1.0 poy wh... _ .11 100. "'C.'. n_. .loct,l.lty. h..c. ~'. c.I"",-. end oth., ch...... I.....".. In Ch. opo'.tion...lnc......... ..... GO.........., end ...._ of tho Equl_t. end.1I _1.1 ..._. end _,_ I...fully _ by .., ___C.I body fo, publl. I...'.......C. th.C MY be ........ by . lion on tIIo lqul_c: provlclacl Ch.C ..Ich ,..poeC co _1.1 ..........t. or oCh., _,.,.."t.1 _..... Chn MY I""ully be pold In InoulI....t. over . po,lod of yoo... L.._ ..11 be obll..c" Co poy only .uch lnotall....u .. .,. requl,.. to be pold ""'I... tIIo T_ of thl. L_ .. end wh... .Che _ __ _. L.._ ..11 noC be required to poy .., f.....I. n.t. or locol 1_. 1.....'lt_. ..uc.. ........Ion. C,anafer. .lft. f,enchl... ..... ....lpU. profit. .IIC... proflc. ..It.1 noct. corpor.t.. or oCher .1.11., c.. poyobl. by L....,. It. ........... or ...1..... ...1... ...... c.. I. _ In II... of 0'" . aubatitut. for .., t... .._C 0' ch..... which I. Ch. obll..clon of L.._ ...., chi. ....clon. L..... "Y. .c It. ... .xpanao end In lu ......... In Iood f.lth .onc..c .., ...... t..... ....._IU. utility end ocher ch.,_ end. In Ch.......C of..,...... .onc..c. ..y po..ic ch. C..... ..........c.. uClllty or oCher _,_ eo _..tori to ....In _Id ""'I... Ch. po,lod of ...... .onc..c end .., _I Ch.,.f,. ...1... L...., ..11 notify L.._ thet. In tIIo opinion of l.lda~.....C Couna.I. by IlDIlPO_C of .., ....h It_ Ch. Inu...c of L...or In che Equlpoont ..Ill be _terl.lly _.doIltored or ch. Equl_C 0' .., po,C ch.,oof ..Ill be .ubjocc co loa. 0' fo'f.lt..... In which ......c L.._ oholl prooptly poy ...... t..... .....SMnI., utility or other char... or provide Lea,or with full ..curtty againat wry loe. ....,ch..,. rHult fol'll nOllp.,-..t, in fo.. ..tI.foccory Co L...... SOCtion 7.4. ......_. If L..... ..11 f.1I to po,f_ MY of It. obll..cl_ ..... thl. A,ti.I.. L_ MY, but oholl noc be obll.n.. co. tat. ...... oction .. MY be ........ry Co cure .uch f.Il..... 1...11111... tIIo --=.....C of _, end L..... ab.1I be obll..Cod Co ,_ .11 ...... .......... on _. ..lth Inc.ren .c Ch. ,.c. of I. po, __ or Ch. _1_ rot. po..lu.. by I.... which....' I. I.... f,. ch. dac. of Ch. _ Co the daC. of '_~nt. M"CU VIII TITLE Section 1.1. I11lI. Durl... Che T... of Chi. L..... end eo 1_ .. L..... I. not In ....It ..... Artlel. XII, I_I clcl.. Co ch. Equl_t end .., end .11 ropel... ..I_U, aubatltuti_ end IIOCIlficotl_ '0 It ahotl be in '--. ..... c...lnatlon of chi. L_ ..ith roapoct co anr Equlpoont G....... ......-c to _tlon 4.2 or A,tlel. XII 1IoNof, full end .......-red 1...1 tlu. Co auch lqul_c ...... ..11 pea. Co L....., end L.._ oholl 110ft no furthor Int...t tIloreln. In .ICbo, of auch ......c.. L"_ oholl ._. end dill..., Co L...or .uch doc_C... L_ MY.....' to ...1.... tho pea.... .. of I_I tlU. Co ...... lqul_c G....... Co L"_ end the t...lnatlon of L....... Int...t tIlorein, end ..... ......t .., L_ Ih.1I dall_ pea....lon of tho lquipoont ........ Co Leaaor In oc.or....c. ..Ith _tlon 12.5. ..... t_l_tlon of .'0 L_ ..Ith '..poec Co .., Equl_c 1Ir_ ch........ .....1.. of L....... opclon Co purch... ....-t co Arti.lo X or th........ ...-nt .... L.._ of .11 ....col ,_C. end OCher -..u ..1.tI... Choroco. L.....'. ._Ity or other Int....' In auch ........ ........ ....t1 c."lnac.. end L..... ..11 .._. end dill"., Co L..... .uch .......t. .. L.._ MY .....t to ...1..... Che t_l_clon of L...o,'. .ocu,lcy or OCher Int_t In ...... Equl_c G,_. SOCtlon 1.2. ---ltv 1_'. L"'" ..11 h.... end ,.t.ln . .....-Ity Int..., ..... tIIo ...If_ r rel.1 Code in Ch. Equl_c. Ch. proc_ thereof end .11 '_I'.. '.loc.....U. aubaclCutl_ end IIOCIlflcoU_ the,eto or tIloroof _ pur......C Co Socclon a.5. In order Co ....... L.....'. po_c of .11 ....ul ,_C. _ ""'I... tIIo Tera of thl. L_ end the po'fo....... of .11 och., obll..tl_ he,.ln Co be po,foNed by L...... In Ch. ......t auch lqulpoont I. . _tor _ielo. L_ Ih.lI h.... aucho,lty Co '_1.. che n.c. of ,..Iat,.clon co noc. L.....'. ......Ity Int....c on It'. rocordI end tIIo Cortlflcot. of Tlcl. fo, Ch. Vehl.I.. L..... ..III join ..lth L...o, In .._1... auch flnanel... .tcc_. or otllo, do. J nC. end ..Ill po,f_ .uch ocu .. L...., ..y roqunt to "c..llo1l end ..Inc.ln . ".lId _Ity Int....t In tIIo lqulpoont. If......torI.... L_, L..... ab.lI ._pl......ly..rt Che Equl_t ..ICh .""'opll.c. I.U.'I.... lobel. or t.... end _Int.ln...... .,tl_ _I... the Te.. of Chi. L..... .0 .. el..,ly to dl..loa. L....,'. .ocu,lty Int.,..c In the Equlpaont. SOCtion I.l. IJD. D...I... Che T... of Chi. L..... L..... ab.lI noc. dl,ecUy or Indl,ectly. ....t.. I........ ....... 0' .uff., co ..Iet ony .'c_. pi..... II.... ch.,... ................ 0' .1.1. on 0' ..ith 'eapocc to tIIo Equlpoont. otllo, CheC Che ,..poetl". ';Ehu of L...o, end L..... .. h.,.ln provided end ,...Inod E...UIlbr....... .1IC.t.. .xpreaoly provided In Soctlon 7.3 and chi. A,tI.I.. L.._ ..11 pr_Uy. .c Ita ... .apone.. cot. ....h action.. ..y be ........ry duly co dlach.... or ,_ '''Y .uch .'c..... pi...... II.... ch.,... ....UIlbr..... 0' .1.1. If Ch. ._ ..11 .,1.. .c .., tI... L..... ..11 r.I...... L.._ r ~ expenae incurred by L...or in order to dlschlrle or r..-ve II'IY luch .ore...., pl....., lien, ch....., "::&8rance or cl.I.. sectS.. 1.4. ,..t.Uett... ef 1--1. 1...1.....r. L~_...,.t IIrf ct. end f.-- It_ to tt.., In Ie. eot. dlacrett.. end cc IU ... __.. Inoc.lI oth., It_ of _I_t In 0' ..... ch. Equl_c. whlcll Ic_ oholl be ldentlfl.. by t_ 0' 6 otller .~. .fflxed t.....to.. prcIpOrty of L......II ...... 1010 ldontlfl... ....11 ....11'1 tho 101. ~ of L.._. In ""I';'~ ....11 how no Int_t. ond..,. be _ 'I'" or r_.... bI' L.._ .t .. tl_ _I'" thot ~ ....11 __Ir ond r..t_ .. _ .11 -.. to tho Equl~t rnulll", fr.. tho Inn.ll.tlon. _Iflcotlon or r_1 of .. ...... It_. IIOthl", In thl. L.... ....11 pr.-l L_ fr.. purcIloIl", It_ to be Inn.ll'" pul'Il*lt to thl. locUon ..... . __ltl_1 ,.1. or 1_ ..Ith option to __ controct. or IUIIloct to. _r'. lion or _Ity -"~ II _Iry for tile ....Id ..tlon of tile __ prlco tlIoreOf. _I... th.t no ....h I Ion or '1CUI"1ty Int....t ....11 .ulCh to.. port of tile ...1,.... IICtlon ..5. _flcatl.. of _I .t. L"_ .h.ll. .t It. ...... .'pIIlI.. how tho rl8llt to _ __Ira to tile Equl~t. ond to _kG __Ir.. rapl_t.. IUIIIUtuU_ _ _lflcoU_ to .11 or .. of tho porro tlleroof. All......_k _ .. port or .: ; [ ....t III'" or l..t.lI... to _kG . __Ir or .. . ropt_t. IUIIItltutlon or _Iflcotlon. ....11 tlIoreOftor c_I.. port of tho Equlpoont _ be IUIIloct to tho _1.1_ of thl. L..... SUch work ....11 not In .. lIlY -.. tile Equl~t or COlllO I t to be UIocI for purponI ot.... then tho.. IUthortz... ....r tho _1.1_ of It.t. ond FocIorol L.. or thooo cont....l.t... bI' thl. L_: ond tho Equlpoont. upon cOlllpl.Uon of .. ...... .....k ....11 be of . willi ""Ich I. not I.. then tile willi of tho Equlpoont 1....I.t.ly prior to tho : uamt of .uch .....k. Any property for ""Ich . rapl_ or IUIlotltutlen I. ... pul'Il*lt to thl. IICtl.. ..,. be dl......... of bI' L..... In ...... _r ond on ...... t_ .. - dot_lnocI bI' L_. L_ ..Ill not po..1 t .. _Ic'. or othor lion to be .nobll...... or r_ln ...I..t tho ...Ipoont for loIIor or _t.rl.l. furnl...... In connecUon ..Ith .. __Ir. roploc.-nt. IUIlotHutlon or _lflc.Uon ... bI' L_ p&rOlIOftt to till. IICtlon: _I... tIlet If .. ...... lion I. ..t...lI...... ond L_ ....11 flrat notify LII_ of L_'. Int_lon to do 10. ~..,. In IIOOd f.lth contllt .. lion fll... or IIt...1 I...... ...I_t tho Equlpoont. ond In ...... .-I ..,. paMlt tile It_ 10 _..t'" to ....11'1 .....1........... _ unooU.fI... clurl", tho period of ...... cont..t _ .. _I thoNf... unl... L_ wll notify L.._ thot. In .ho opinion of Ir fl. mllnt c:ounnl. bI' -.._.t of .. .uch I tll tho Int....t .f L_ In tIIo ...Ipoont ..Ill be _t.rl.lly ......... or tho "'Ipoont or .. port t....oof ..I II be IUllloet to I... or forf.ltlIN. In ""Ich .-I L_ Wll proopUy plY _ _ to be ..Udl... end dl........... .11 ...... ....Id It_ or _Ido L_ ..Ith full _Iry _I..t .. .uch lOll or forf.ltuN. In fOM ..tl.foctory to L_. L.._ ..Ill _r.t. fully ..Ith L_ In........ cont..t. upon tho r_t end .t tho ._. of L_. _Ion ..6. '.......1 P. lW. Th. Equlpoont I. ond .holl .t .11 tl_. be ond ....11'1 por.-I properry not..lth.tondl", th.t tho Equlpoont or .. port thoNof ..,. be or .......,t.r _ In any _r .fflxed or .u_ to or . H r In or po..-tly r..t'" upon.'r..1 prcIpOrtyor .. bulldl", th.reon or .u....... In any _r to "".t I. poMOftOftt bI' _ of _to plalter, ~il.. boltl, Icrewe, or otherMi... MTla.E II _IE' IICtlon 9.1. 101-'lon of _ .t. Tho E~lpoont _ tho Controctor howlloon ..Ioe"" bI' L_. ond L_....ll ..ow no ___Iblllty In c_tlon ..Ith tho ..Ioetlon of tho Equl~t. It. IlIlt...lllry for tIIo _ IntondocIlIr~. tho occoptonco bI' tho Controctor or It. ..I.. roprnent.tl... of tho order ....Iu.... Or "" doIoy or f.ll11N bI' tIIo CoIltnctor or It. ..I.. raprnont.tl... to -*_ura. doll_ or IllIt.1I tho Equl~t for _ bI' L_. ~ 1Uthor1.... Loooor to ocId tho ..rl.1 _r of tho ",Ipoont to Eohlblt A IlIIon _lIobl.. seetl_ 9.2. .M.all........ "1____ of 1..1i 4. L..or....U uw .. oItI'"et.. to h.e.U, ....t, t..C, I_t. ._Ic. or _Int.ln tho Equlpoont ....r any cl~t_... but ...... ocU_ wll be tho obll..tlon of L_ or tho concractor. _Ion 9.3. contrKtor'. ....r..."'t... L.llor horobl' ...1_ to L_ for end clurl", tho T... of thl. L_. .11 of It. Int.r... In .11 Controctor" IIIrrentl.. ond ..rent_. _... or 1...11.... lnuocI on or .,plloobl. to tho ..I,.... end L...or h.Nb\' IUthorll.. L"_ to obt.ln tho clllt_ry '.l'Ylc.. furnl...... In connection IIlth ...... IIIr__l.. ond ..--- at L....', expll'We. IICtlon 9.4. ,._ lnfrlr .... L_ h." 1111_ to L..... for ond _I", tho T... of thl. L_ .11 of It. Int.r..t In poton. 1_lty _toctlon _I... bI' .. ControctOf' IIlth rnpoct to tile ...Ipoont. _ _1..- of potont 1_lty protoetlon bI' L_ to L.........ll _tltu.. tho ontlr. 1I...lIlty of L_ for.. pot_ Intrllll !j.t bl'lqulpoont furnl...... .u..lIOftt to thl. L_. IICtlon 9.5. DI..,I._ of _1_. THI ElIUlPllEIT .. DELlIIIIED AI II, _ LE_ _I lID lMIIIMT1' III RIPlISEITATlllII. EITHIR IIPIEII III n.L1ED. AI TO THI VALUE. DIIIIllI, COIlDlTlllII. IlEICIlAIITAlILITY III FITIlE.I Fill AllY 'MTlCULM PUlPOSE III FITIlEII Fill THE USE CllITEIlPLATED IT LElSEE OF THE ElIUIPllEIT. III AllY OlIlEI IEPlllElTATlllII III lMIIIMT1' VITI IEIPECT TO THE ElIUIPMEIT. MTla.E I lIPflCII TO I'l_ IICUon 18.1. .~ - _lIobl.. L.._....ll how tho option to __ L_'. Int_t In""....poont G...... on "" '_t Det. r.letl", th.Nto for tho thon oppllcobl. _... Option 'rico ..t forth In tile ,... of Eohlblt . NI.tl", th.r.to. but only If L_ I. not In doflUlt ....r thl. L..... end only In tho __ prowl'" In thl. Artlcl.. IICtlon 18.2. 1.....1_.. _Ion. L.._....ll II... notlc. to L_ of lro lilt_Ion to _rei_ It. option IIlth .poet to .. Equlpoont G...... not I... then thirty (]O) doyo prior to tho '-' Dot. on ...Ich tho option I. to be 1IlII'C1.... end ....11 dopoIlt ..Ith L_ on tile dot. of .xorcl.. en _t oquol to .11 lontel ,.,~.t. end"" ot.... _ NI.tl", to IUch lqulpoont Group then _ or pIIt _ (Includl". tho Ront.1 '-' NI.U", tlloroto _ III tho '.-' Dote on ""Ich tile option i. to be ...rcl....) ond tho _Icobl. _II. Option 'rico ..t forth In tho ,... of lohlblt . NI.tl", thoNto. Th. 7 Cl...I...AIl be an tb. ,_t Det. an ....Icb tb. .A I. to ~rCiled .t tb. offlc. of L...or. n Wtl.. 10.3. lei ., L -', IIIt_t~ ~ .x.rcl.. of tb. purcb". optlan ..Itb r_t to _ ~lpIIIfIt G.... by L.._. L..sor sh.ll __ or r.l_ to L...... .11 of lco rl"'t. tltl., orrdIor Into...t In"" to tho lqulplllflt G.... by dellverl... to L.._ ._ doc_t, .. L..... _ nec....ry for tbl, purpo... ARTICLE XI _I-.T. ..LOIIIO. _TUIIIIO _ SELLlIO Sectl.. 11.1. _1_.... L--. L..sor sh.ll not ...1... It. abll..tl_ under thl, L_. .... no purported ...I_t thoreof sbell be .ffectlve. All of L..lOr'. rl",t. tlU. orrdIor Int....t In"" to _ lqulplllflt ...... the I_I ,_t, .... oth.. _to r.l.tl.. the..to _ h..........r. .... tho rl",t to .x..cl.. .11 rl"'t. under thl. L_ ..Iatl.. to aucII lqul....t .roup _ be _11lled .... .....11lled In whol. or In port to _ or ... _1_ or ......1_ by L_ .t _ tl_. ..Ithout tho c_t of L.._. No._ ...I_t sbell be .ffectlve .. _Inot L_ ...1_ ... llIlCll the _I_ sbell haw filed ..Itb L.... . copy or written noU.. th_f ldentlfyl.. tb. ...1_. L_ ....11 lIlY .11 ....1 ,"_.e. _ horlWlder ..I.tl.. to aucII lqul....t ..... to or .t tho dlroctlon of LnlOr or tho _I..... 1-.1 In tlIo _t recent _I..-,t or notlc. of ..I_t ..Ith rHpICt to ...... .qul....t ..... filed ..Ith L_. ourl.. tlIe.~ f_ LIIoOO ....11 .... . c_at. ... .......t. rocord of .11 ...... ...I~.. In the _ L_ ..1.... portlclpotl_ In Ita rllllt. tiC I.. orrdIor Int....t In"" to _ lqul....t G..... tho lent.1 '_t. .... oChor _co _ ..ltIl ....-et ..ta. ... .. rl"'U .rented under thl. L.... ..1.tI.. theroto. aucII portlclpant. sbell be considered to be L..sor ..ltIl reopotC to thel,portlclpoCed _ thereof. sectl.. 11.2. ...1........ ......_1_ Iw 1.--. ..Ither thl. L.... nor L.._'. Inter..t In .... ......... ..., be ...11lled by L..... ..Ithout the witten _t of L..sor. _r. tho lqul....t _ be ...1.... by L_. In Ilhot. or In port. ..lthout tho _ of L_. ...joct. h_r. to _ of tho followl.. condltl_. (i) ThI. L_'" tho abll..tlon of L.._ to _. lent. I ,_co horlWlder. oholl ...In alItl..tl_ of L"_. (II) Th. ...1..... sh.ll ...... tho abll..tl_ of L.... horOWlder to the _tent of the I_C "'100Ied. (Ill) Ln_ sbell. ..Ithln thirty (30) doyo .fc.r the delivery thoreof. furnish or .... to be furnished to L_ . true ... c_l.t.. copy of ...... "'1_. (ly) No .ubl... by Ln_ sbell c... the lqul....t to be uoocl for . purpon other then . ......._.e.1 f....tl.. outlIorlled WIder tho prevl.l_ of tho c.wtltutl.. ... 1_ .f the IUC.. (y) No ...1_ oholl .... Cho Int....t c . J _It of tho lent.1 '-'. _ ..ltIl reopocc Co the lqulplllflt to ~ Includlbl. In ..... 1_ of tho recipient for fedorol 1_ t. 1IUI'lIOIII. sectl.. 11.3. _tpletl... _1IDrt .. ..., Dfr"" l Iw L---. Ixcept.. provt... In '-'I.. ".2, L__ will .lOt _t_. 1111. _I.... tr_f.r or convey tho lqul....t or _ portl.. thereof _I.. the f_ of thl. L_. or "- tho ... f.... It, IloundIrl... ..Ithout tho ..rltten c__ of Ln_. ARTICLE XII IEVIIITI Of .FMLT _ _In Section 1Z.1. _., _t _1_. Tho fOllOWI.. sbell be "_CO of deflUlt" WIder till. L_ ..ltIl rHpICt co _ lqulpoont ..... ... tho t_ _U of default" ... "default" sh.ll _. .........., tIIoy ... uoocl In thl. L_.. ..Ith r_t to _ lqulpoont G..... _ _ or ... of tho f.llowl.. _tll (I) f.lluro by L..... to pay lent. I '_t or oth.r po_.e required to be pold under till. ~ ..ltIl rHpICt to _ Equl....t ..... .t tho tI_ epoclfled hor.ln .... tII. contl...tI.. of IIld f.ll.... for . porled of tII.... (3) doyo .fC.. t.l.....lc or t.I..,,,,,,,lc notl... .Iven by Lnsor thot the _t r.ferred to In ...... notl... has not ..... ......1...... ...... t.I.....lc or t.l..roplllc notlc. to Ilo "_IClO_Uy confl.- In ...Itl.... or .ft.r written notl.... (I I) f.lI.... by L_ to _ .... porf... _ co.__t. condlcl.. or III ._~C on lto port co be ab..~ or porfo.- ..ltb .._t to _ lqulpeent G..... other thon II rlf.rred to In CI... el) of thl. Secclon. for. porled of thirty (30) doyo .ft.r written notl... epocllyl... ...... f.lI.... .... .....tI.. thet It be rOllldled has ..... .Iven to L_ by L_. ...1... L"lOr sh.U ...... In ....ltI.. to en IXt_lon of ...... tl_ prior to Ic. .,I..tlonl prevl_. h.......r. If the f.lI.... It.ted In tb. notlc. connot be corrected ..lthln tho _llcobl. porlocl, Ln.or ..III not """....nobly ..Ithhold It. _ Co en 'XC_Ion of ...... ti_ If corrective octlan I. I,,"tltuted by L..... ..Ithln tb. _lIcobl. porlocl .... dllloently pur""" ...tll tho defaul t I. corrected. (III) Tho fill.. by Ln_ of . vol...t.ry potltl.. In IIInkruptcy. or f.lI.... by Ln_ ~Iy to 11ft _ .xocutlan. ..ml.~t or .ttecbeent of aucII c_oquonc. .. would 1..-1, tho oblllty of Ln_ to ...rry on It. ....'..-.t.1 f....tlon or odjudic.tlan of Ln_ .. . lIInk....t. or ..'I_t by L..... for tho benoflt of credit.... or tho entry by L..... Into en IIr_t of c....ltl.. ..Ith credltoro. or tho ~.I by . court of c__tent j...ledlctl.. of . potltlon lIIlPllcobl. to Ln... In _ proceedl... I,,"tltuted WIder tho provl.lono of tho Fodor.1 ........tcy It.tut.. II _ldod. or WIder _ .I.llor .ct. which IIY h.r..ft.r Ilo .....tod. Tho provl.l_ of thl. Section lZ.1 .... Section 12.Z or. ...joct to tho followl.. 1I.It.tlon. If by reooon of !aI:sI .JlItI Ln_ I. unoIll. In whol. or In port to corry out lco abll..tI_ WIder thl. L_ ..Ith r_t to _ lqulplllflt ...... -oth.r than It. _lI..tlan to MY ....t.l P~t...It.. rHDHt ,......to....tett ....ll _ Mid........ MtWU...t....IM 1M ....,'.1_ of thl. oor..rooh, L..... sbell not be deooIId In default _I.. tho cantl....... of ...... lnoblllty. Tho t... -force _1_ .. ..ed hor.ln .h.1I _on, ..Ithout 1I.lt.tlon. tb. foUowl.., ecto of Godl Itrlkn. lockout. or othor lober dl'tuI_"", occ. a -l. - of publ...; 0..... or ...cr.lnC. of.,." klnd.Ch. -rOC of ch. ~Iead IC.C" of _Ico or c4.c. or _Ir .......U... ......._11. _I.. or offlcl.I.. or .,." civil or .111 c...., _herlcy; 1.........tl_1 riot.; londalldMl un........1 fir..; .C_I cIraulIhC.; f1_1 .....1_; bruk_ Of' occldanC co _I..ry. cr_I..I... pl_ or _I.; or _ other _ or ~ not rMaOMbly within the c..crol of L.._ ... not rnuUt,. fr. it. ...li..... L__......, h.....f. to ,..., \Itch all r.... lOIlI. dl.pacch Cho _ or _.. p.....nUns L..... f... corrylns OUC lea _lIIOU_ ...... thl. L_; provl_ .h.C tho ..ctI_c of ocrlk... locIIout. end oChor lobar dl.curIIIWIcos oh.1I bo oncl...ly within Cho dloc_l... of L_ end L..... ahall noc bo requlrod Co _. ..ctI_c of ocrlk... lockout. and oCh.r lobar dl.clll'bonc.. by _Ins Co tho ~1~11lIo of tho appoolns party or partl.. ..... ...... caur.. I. In ch. j~C of L..... ...f.vorobl. Co L...... _Ion 12.2. . "_ on _oute. lII_r.,." .....c of dof..1 t r.f.rrod to In Ioccl... 12.1 horoof ahall how ~I~~ ood end bo cantl...lns with roopocc to .,." lqulpoonc G"_, L..oor ahall h.... Cho rllllt. .t III aptl... end wlc_ _ forchor cto.ond or noUc.. to tak. _ or .,." _I..tl... of tho follOlllns rOMelI.1 .tepa: (l) Luoor. with Of' wlthouc t_lnott... thl. L_ with .......t to ouch ...Ipoont ~. _ _1_.11 _.t '~t. duo Of' to boc_ duo with .......t to ouch ...tpoont G~ ul... _ Floc.1 Yur In .ffoct ..... _ dof."U <<are to bo 100001.t.ly duo end payabl. by L_. .....roupan ouch ....t.1 ,-,-It. ahall bo l.-octl.t.ly duo end poyobl.. (Il) Luoor. with Of' wlChout C.......U... chi. L_ with roopocC Co ouch ....poont ...... _ . . 11_ tIIo Equlpoonc ..... by .Ivl... L_ witton nottc. to doll...r ouch lqulpoont .~ to Luoor. ..........':on L_ ....11 lID .. In tIIo -.. provl_ In Ioctlon 12.3; Of' In _ _t L_ f.il. to lID .. wUhln ton (10) doyo .fter ....lpC of ouch _Ieo. L_ _ onter upan L.....'. _1_""" tho lqulpoont ..... I. kope end tile. poo_.I... of tho lqulpoont .~ end..... L_ for COOII Incurrod In r__I... tho lqulpoonc ...... Includl... ,_.noIIl. .ttor/WYO' f_. L_ hIf'oby .........ty ..1_ _. ,". occ..l_ by ouch ", ......1.... If _ ..........t Gr_ or .,." porU... of tc h.. boon dMc~ or' 'T~ ...,..... ropelr. L..... ahall pay _ oppUcoIIl. _ Gptl... Prlc. of _ ...I......C Gr_. .. ..t forth In bIlllllt I Cl_ crodlc for ..c 'rocloctol. Co L..oor. _ltIl.cendlns Cho feet th.t L.._ .... Coken poo_l... of _ ...Ipoont ...... L_ ....11 cantt.... Co bo ~Ibl. fOf' tho lont.1 '~ta ... with ,oopocc thoreco ulns tho 'Iocot Yoer then In .ffact. If thl. L_ h.. not boon t_l..cod wlCh roopoct to ...... lqulpoont G~. L..oor ahall r.tum tho lqulpoonc Co L_ .t L_'. _ ....on tho .....t of dof..IC I. _od. (Ill) If Luoor t_lnoc.. thl. L_ with .......t Co ouch ...Ipoont ..... end tokoo f nll.l... of ouch lqulpoont c...t.IMct th.r.ln. L..oor ahall within thlrcy (30) doyo thoreafter uo. Ita ....c .fforc. to ..II ouch ",Ipoont Of' .,." porU... thoroof In . ~I.lly ....oonoIIl. -.. .t public or prlvat. 001. In .CU,dollC. with oppllcolll. It.t. 1_. L...or oh.1I apply tho procoodo of ouch ..1. Co pay tIIo follOlllns Ic_ In _ follOllI... cwdo,: (.).11 coota Incurrod In _Ins pooo...I... of tho Equlpoont .~; (b) .11 ......... Incurrod In ~.cl... _ oot.; (c) tho oppllcolll. _ Gptlon 'Ic.; (d) tho bolonco of _ lont.1 ,~. with r.....c to ...... lqulpoonc G~ 0lI0d by L_ ulns _ 'Iocol Yeo, then .n .ffect. """ S.l. proc_ r_Inlns .fc.r tho .....Irooent. of CI_.. (.). (b). (c) end (d) how boon MC _ bo ",c.lnod by L....r. (Iv) If _ ploc"" of 001. of ouch lqulpoont .~ .re not oufflclont to pay tho bol_ of _ I_t ,~. with .......c Chorato 0lI0d by L_ ulns _ 'Iocol Y.. then In .ffect. Luoor _ tile. .,." other I'IMlIy ....il... .t I... or In equity to requl... L_ Co parf_ .,." of Ita _lIlOtl_ horoW1do,. _Ion 12.3. hCUm of _ 4. Upon tho loplr.tl... or c.Mlnott... of thl. L_ with roopoct to _Iqulpoont ..... prior to tho .--,t of .11 lonC.I ~. In Itrt."1C4. wlCh EldIlblt I. L_ ....11 -..m ouch ",Ipoonc ..... to L_ In tho conditt.... ropelr. __ end _klns cwdo, roqulrod In Ioccl... 7.2. In the follOlllns -.. .. _ bo opoclflod by L...or: (l) by doll...rl... _ lqulpoont G~ .t L_"". cooc _ .', ..4 to ouch pl_ wUhin Che IC.C. .. Luoor ahall opacify; or (II) by I_Ins ouch porcl_ of _ .qulpoont G~...re c_ldorod __I..t L.....'. COIC end 0IIpIIIl00. ... board ouch corrl.r .. L_or oh.ll opacify end ahlpplns _ _. f...IIIIC prepaid. co Cho pl_ opoclflod by L_r. If L_OO ...fuoOl to ...torn Che ...I......t G~ In che -.. dMI_tod. L.._ -.y _. tho lqulpoonc .~ end ch.,.. to L_ tho cooc. of .uch ropoo....I... or pur_ .,." rOMdy dMcrlbod In Ioccl... 12.2. _Ion 12.4. ... . _t..I_. .. rOllOdy canf.r,od upan or ....rwd Co LOIoor by thl. Artlcl. I. Intondod to bo ucluol... end _ry ouch I'IMlIy ahall bo cuoul.cl... end ah.1I bo In oddlU... Co ovary OCher I'IMlIy .1.... ...... thl. L_. .. dol.y or .1..1... to ....rel.. .,." rllllc or polIOr eecrulns upan .,." dofoult ah.ll lepalr _ ouch ,llIIt or powor or ahall bo conotruod Co bo . IIOI..r th.roof bul: .,." ...... rllllt end polIOr _ bo ....rcl.od fr. tlM to tlM end .. of con .. _ bo _ oopodlont by L..oor or lco ...1_. Sectl... 12.5. _ .1 to _ Att_' F_ end .-..... In tho _ .ither party to thl. L_ ohould dofoult ....r .,." of tho provl.l_ heroof end the nondofoulUns party ohculd _lor .ttomoyo oneIIor Incur ocher ......... for Che collectl... of oonoyo or for Che onfO! tUt .t of ......... for Che collocU... of oonoyo or for _ onforc_c of porfOl_," or _rvonc. of .,." _"IOU... or .._ on tho parc of Che dofoultlns party h....ln cancolnod. _ dofoulClns party ....... CheC It wlll ... cto.ond th.r.for pay Co tho nondofoul Uns party the roooonoIIl. foo of ouch .ttomoyo oneIIor ouch other ............. .oponooo .0 Incurrod by the nondofoul Uns party. In ch. _t thet I_I proc-Ins. r.I.Uns to thi. L_ (bul: not ovldonclns .~ ocU... by . nondof..ltlns parcy _I Nt . do'oultlns party) .re c_od In .,." _t or bof.... .,." other tribunal of pacont jurlldlctl.... tho I_I f_ end oCh.r reaoonolll. COlco and ......... of tho prowlllns party ahall bo paid by the ,_w.lIlns party... cto.ond of the prowlllns parcy. Ioctlon 12.6. I.C. ChoNa. 1IIono...,.,." _t of dof..lt ref.rrod to In Ioctl... 12.1. CI_ (I) horoof oholl h.... hopponod end bo cantl...lns with r..poct to any Equlpoonc ...... Luoor oholl how tho rllllt. .t lco aptl... end without _ 9 f...tllar a... or no.lce. '0 r_l.. . I... _. ... for .O'hlrty <301 day porloll or port tlIereof .0.. ....lelI ...... __ of ~~It oc...... _I '0 fOW' ..,..... (4Xl of .... doll...-. _'. _ L_ _Il ... _II...... to pay .... - l-.dl.t.ly _ roc.lpt of L........ ..rl.... 1.....lc. ....r.for: provl.... h_r. .h.. till. lactlon 12.6 _Il not ... oppIlcoIll. If or '0 .ho .xt... .h.t tho _lIce.lon th.roof -.tld .ffoct t'" v.lldlty of .hI. L_. MTlC:U 11111 _.I.ITUTlVE _.1.l1li _Ion 13.1. _1_. All notlc... c.rtlflc..... I_I oplnt.... or othar ..-..Icetl_ ........... _Il ... IUfflcl..Uy ,IVWI _ _Il ... ... .IVWI ...... dollverad or cIopooltad In .h. Unl.ad ...... _II In ....i....... f_ ..ltII poot_ fully _Id to .... __ _If lad on tho fir.. _ h.roaf: provl'" th.t L_ _ L_. III' notl.. ,IVWI h...-.. ~ _I_t. dlff.r..t _... to ....lelI __t notlc... c.rtltlc.t... I_I oplnl_ or othor ..-..I_tl_ ..Ill ... ..... IIdt_ t3.2. FfftMl:f.t IfL~...4tf... OUrt,. tlte 'ertl of tIIla L_., Ln,.. ....U)' vlll prwl* ....... "Ith ttl C1Wr... _I Flnancl.l .......... .....f of .~~f...l.tlon for t'" ....Ine '1_1 '..r _...... othor financial I"'-fan rol.tine to tII. oIllllty of L_ to conti,.. till. L_" ~... "ooonollly r__tad III' L_ or I.. _I...: ... _t.--41I...-,_.. of ....ocuctlon of ...... da ..0 _Il ... Ilorno III' L_. _ion 13.3. ........ _. 'hi. L_ _Il I..... to t'" Ilenoflt of _ .oll ... bindlne _ Loooor and L_ _ tholr roepoctlve ...._.,.. and ...1_. _ion 13.4. la a "lIitv. In.... __ ... proviolon of thl. L_ _Il lie ...Id l....lId or .._..... IUUO III' ... _t of coopotont J...lodlctlon, ...... holdlne _Il not Involldot. or randor UIWlforcoolll. ... othor provl.lon lIoroof. _'on 13.5.' . _. - _ _ _fi...tlano. 'hi. L.... ~ ... 1 "'.d or ... of It. t_ ...flad only III' ...1.... dar--rrt *,Iy ........lIad. _ad _ doll_ad III' L_ _ L...... _ion 13.6. c:.tiano. tho ceptl_ or lIoodl_ In thl. L.... _ for _1_ only _ In no _ doflno. IIl11t or "crl'" tho _ or tnt... of ... provl.I_. Artlcl.., lactl_ or CI_.. of till. L_. lecttcn 13.7. ~..~ MIlOlJ..... CarnI:t"_ 'II&t- a. L...or and L......,... tUt tMv "Ill, f,.. tt. to et_, .xacut.. ocknolllodto _ doll_. or c_ to ... _ad. _lodIOd _ dollverad. ...... ~_ Iloroto _..... f..._ lnot_. .. ~ ..Iunallly'" ....Irod for corroctlne ... In.d., .to or Incorroct ......Iptlon of .... "'Ipoont horoIII' looood or Intondod .0 to .... or for 0.......1.. corrylns out t'" 0II\ll'0000d Int..tlon of thl. L_. _I... 13.'. ,-.,... In ___t.. 'hi. L.... ~ ... .1..lt_ly _ad In -.1 _........., ooclI of ....lelI _Il ... .. ort,lnol _ .Il of ....lelI .oll _tltut. but _ _ tho _ I..t_. _Ion 13.9. _'cobIo L.. 'hi. L.... ..11 ... _mod III' _ c-truod In IC.. ..._ ..Ith .... 1_ of .......... II WillIE.. WllEIEOf. L...... hu couood thl. L.... to ... .xacutad In I.. corporato _ III' It. *,Iy outllorlnd offlcer: _ L..... h.. _ thl. L.... to ... _ad In It. _ III' lto *,Iy eutharllad offlcer, .. of .... dot. flrot oIIowe wl..on. GELCO f1_ COIPOIAYlOI. L_ Iy It. CIty of ... IIrnordlno. L..... Iy It. 10 . . EDI110 c:nlIflCATE 1If AlDPTUCI! o I. tile ......1..... ........ certify tllat I _ tha cLlly .,iellfled ..., eetl... of City of 1M .........1... (L_)I ...,. "Ith ......t to tile L_ "Ith Option to Pur_a AI..-t doted LUll DATE (tile L_). 1Il'..., ....,..A.. ~ nil City of 1M ......reIl.. CL_). that. ,. TIla _I~ _rl'" In tlla L_ lI.ted on IIIIIlblt A. PDIO A' th........ A'_ (tile ~..-nt: .....).... Ilaan .11........ ..., lnat.lledln Heir."" "Ith L....... Ipoclflcatl_ (_ th.t Cara I. .flnedln tile L_) ..., .... Ilaan-.ced Ill' L.._. 2. T'" ....tol ,._It. provlclad for on tile PDIO of .lIIlblC 1 co tile L_ ral.cl... co ... ",I..-nt: ..... Ctho IMtoI ~I) ....11 t _ ..., bI .. ..., ..,..1. on ..., tile flnc of ..... I'AYIlIlIT IlIIII C....... _I. ETC.) c.......ftor. In tile -c. ..., on tile .C_ __ on IIUIlll PDIO of Ellllb!t I Co C... L_. 3. L_.... .~~raprl.cedlftJ/or tolcon other IlIIfut actl_ -..ry co provl. ..... oufflcl_ to .., III '-1 ....-.,. ~recI to bI ,.IlIlIIldor tho L_ _I... tho __ fl_1 year of L.._. ..., ......... "III bI .....1... In ~ of .11 IIUIlll _.1 ,--". .... ..., ..,..1. _I... IIUIlll __ fl_1 year. 4. L_.... obt.lned f.... . roputabl. 1__. I r or ..Ilfled to . ....1_ In tho .tot. of callfornl. Ctho SC.t.) 1......_. "Ith roapact co. .11 rl.... ~IrecI t. be _ C...... ~C co ArClcl. VI of tile ~. 5. L_ I. 0IUIlIpt f.... .11 ,.~I ....-rtY c...... ..., I. C....,c frw) C...Joct to). _I.. lftJ/or _ _ "Ith _t to c... E.,I_c ..... ..., C... '''C.I '--"8. 6. Durl... tile L_ Tara C_ .flned In tile L_) tile ....I~ ..... "fll bI ..... Ill' L_ to ,..c .... _1.1 lOW. __.t.1 fl8'lCttorw. SUCh *'-'ctt_ ere: 7. T"'ra I. .. IItllOtI... acclon. oulc. or pi .....1... plIndl... or bof_ 1Ift~. elIIIllIlltrocl. ..... n!tra_ or __.1 bocIy. that ....11..... tile ......I..t1on or ..I.tonee of L~ tho ......Ity of ~ or Ita off'- or lea _oyooa co _ Into tha L~ tho fINIIOI' 1lltllor1..t1on. l"r_1 ..., _lOll of ... ~........ ~H I 11, . J II -+ tltlll ~I tha IH ....I.clon of ...... .. 11ft at..... acclon t..... Ill' ~ to provlllo ...... aufflll_ to........ ",....c. _I....... _ tile L_ In L_'. _....c flacel _, or c... abfllty of L_ .thontl.. to part_Ita IIIUIlHI__ tho L_ ..., thO Cr_cl_ __.ced ~. D.ted, 1'- City of .... _reIl... L_ Iy. ICI :rlk. 1.....11..1. cara C-' PLIAII ..' 011 An..,', LITYIIIIIIAD. . o o 1IlI1.1T D lIPlIIOII If ..._~ ,Ity of ... _rdlno 3l1D lortll D .t...t ... .........lIno, COllfo...l. 9241. SAMPLE GlLeG P11W1C1 COI_TlClII Tbroo eoplt.1 Drl.. ldon pr.lrl.,.. 55344 at L_ IIlt1lllptlan to PurcIlMo AlII H 1 ,I dotod .. of LIAR DATI'" ... 110_ Iolco F1_ ClIrpol'otlan. CL_). ... City of ... ..........Ino CL_). _u...t I bow octod .. _I to L_ IIlt1l ........t t. tbo L_ IIlt1l Gptlon c. PurcIlMo All I " ........... ..... C.. ~) ... vorl_ rol.tod oon_. ... In till. .....tty ..... rwt... . ~ 1_0 orlll...1 or __'fl" .... .,.. "-- ... ....... .n....... a-to. .......... tbo -.lnstlan of tilUo ... oucIl 0_ III It. .. I ... rol_. It I..,..on _II 1. L.._ I. . ...Iclpol _......tlan ... polltlcol .....Ivl.lan of tb. Itot. of COllfornl. Ctbo Itoto). '*"yorpnl..... ..Iltlftl _ ....rotlftl UIlItoI' cbe ConsUtutlan ... 1_ of tbo It.t.. 2. L_ I. outIlorl.... .. .... ........ l.IIIIor _Icoblo I... to ontor Into tbo ~. ... to corry _ 'ta GlItI..tl_ th.......... _ tbo cronsoctl_ cantoIlplotod tborolll'. 3. Tbe L_ .... Iloan ,*,Iy __I..... lrrrl..od. _od ... dollvorocl .., ... an Ilobolf of L_. ... I, 0 ..tiel ... bllllllftl contl'OCt of L_ anforcoobto In ICU"'lC. IIltb Ita _. 0IIC0pt to .. .torlI:ll8l.....,... .. ........ 1_ .ffoeUftI ,.....1.. ....., ....ruptcy. roorpnll.Uan... otber 1_ of ....1 _Iooclan rolatl.. .... offect... tbe onforc..-.t of crodlcor" rlghta. . 4. Tbe _borll.Uon. I" _I ... _Ion of tbo L_ _ aU otIlar plocoodl_ of L_ rolotl.. to" t..-tl_ cont.....otod tIlet. bow Iloan pit f_. In .curdoIa IIltb oU _Icoblo opan _1.......111 IIlcllllftt .. oU otIIer 1_. NI.. ... NIUlotl_ of tbo ltato. 5. Tbe executlan of tbo L.... ... tbo IitIpl'Opl'latlon of ~ to pay tbo __01 '-'C' ..... .. ...... do not r....tt In lbo vlolotlon of .. canotltllU_I. It.tutory or otber 1I.It.Uan rol.UftI to tbo _r. ,.. or _ of Indlblodnsu ""leIl .... 110 '11lCUI'rod .., L_. 6. Tb_ I. no IItl..tlan. occlan. oult or pi DI..~lftI pondl.. or bef_ .. ~. ....nlotrotl.. 1IOllCY. orIIl*_ ... ,__.1 ~. tbat ....It_ tbo orgonllotlan ... exlot_ of L_, tbo __'ty of ~ or Ita offloora or Ita ....._ to _or Into tbo L_, tIIa -" _borlutlan. IFF.....I ..,... _I.. of .... ~. ....Iblta th.roto _ otber i r -ta cant.....atod tborolll'; tbo I" "'" I.tlan of ~ to ..... I_ot. PI.._". ....... L_ for the curroM flacol ~ of L__, ... tbo ability of L_... othel'lll.. to porf_ Ita abllOltl_ _ tbo L_ _ tbe tr_tl_ _....Iotod tboroIII'. 7. '..olutlan 10. of tbo -",lftI ~ of L...... _ wly ... vollelly '. lod .., oucII .-ml.. body an . 19_ _ oucII ruolutlan hoe nol Iloan _ . . ... ropoolod ... .-1.. In-fult force _ .ffoet. D.tod: Very tNly youro. PLlAR TYPE _ AID TlTLI UIIIO ll_TUII. D.l . . EDlinG IIIaIIIICII IlIUTI. ~ UAIE unl III'fICII TO ,,_AlE ....--.., o CIElIII- _ A-) IE n IE.VEI by tho _ml", Ilodv of City of 1M lomordlllO (tho 1.......,. .. foil_I section'. 1~1t.1... AuthMoI..tt~. ,he......,.. l....., .... ......tof.... ..teNd Into. L... ...... ...... .. ....... .... I A..... of LlAllIAfI CtIlo L_I. Illth 10'00 Fl_ CarporotlClft. .. ,_. It I. ..... "'Ifi.... -lit\I tMt It I. .....II'y .. "ll'8lIlo .. In tllo Iloot Int_to of tllo 1._ to ontor Into tho L_ fer tIlo ......It ., _fill", tllo ...t.... __on tllo L_.....1IIIIIIlt A-. .. tllo.-,IClft.. cIollvwy of tllo L_ by tllo 1_ _ tIlo fl_l", of tho ...Ioftlon of IUCIl E.II.... ..... _ horoIIy IprrD'JOd. ratlffocl .. oonfl..... IIctt.. z. r.i__flall _ "11ft... 1_... I ~ t..ttan. ........ to CIte Internll ...... __, of;:~. . .. (.... CadO). tIlo 1_ lIoroby .,..tfl..Uy ..t...... tllo ~ .. ...1.... ..... A' . 0 ....11f. tal. ,.,l I ....... fer plII'IIIOOS ., ....fon 26S of tllo CocIo. Tho 1_ ......, '. ...Ita thot tIlo ,_ C.. .., ",1. r1'............... _ftf. oat'''' on ......'f of ClIo ,_) 11I11 .... ",_to ___ thon "0.000.000 of ..t..... .....by tIlo ,.... ... tIlo -,.... ~r ut", ..leIl tllo L_ 10 _ocI .. cIollwrocl . IUCIl -,,"flod tu'""" abft..t_." ....Ion 3. 1- _ Lt....tl... Tho 1._ ......, ,."..IIIt. thot tho 1_ C.. ..,..........,. _ftf.. to.. _ftf. actl", on IIiIholf of tho ,_) '..lIrolllly _Iolpot.. nit to 1_ In tho ..,..., ,.... uf", .fa tIlo...... fo II' .. cIoII__. abf llOtl_ boorl", I_t ..... f.... fodoral 1_ ....tlOll ...., Iootlon '83 of tIlo CadO ....... ... .,..tWlto actlvlty _. .. cIofl... In Iootlon '4' of tho CadO) In on _t arooto, thon 110._.000. Cholrpo;.., AU_t: .' E-'