HomeMy WebLinkAbout1985-249
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RESOLUTION NO. 85-249
RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE
EXECUTION OF A LEASE PURCHASE AGREEMENT WITH SECURITY PACIFIC
NATIONAL BANK PERTAINING TO EIGHT XEROX COPY MACHINES AND
REPEALING RESOLUTION NO. 84-533.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is
authorized and directed to execute on behalf of said City, a
master lease of personal property with Security Pacific National
Bank, Lease Schedule letter dated March 19, 1985, its Amendment,
Financing Statement, and Lease Insurance Authorization letter,
attached hereto, incorporated herein by reference and marked
respectively Exhibits A, B, C, D, and E, constituting a lease
purchase agree~ent, pertaining to the use and acquisition of
eight Xerox copy machines described as follows: (2) two Xerox
Model 1035, (~) four Xerox Model 1045, (1) one Xerox ~lodel 1075,
(1) one xero~~odel 2830.
SECTION 2. All prior negotiations pertaining to a lease
purchase agreement for eight Xerox copiers from Xerox Corporation
.
shall not be ~pplicable to this agreement or of any force and
effect.
SECTION 3. Resolution No. 84-533 is hereby repealed.
I HEREBY CERTIFY that the fdregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
r~g111F1r
meeting thereof,
held on the l"t
day of
.1111y
, 1985, by the
following vote, to wit:
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AYES:.
=-~~.
,
Council Members
Estrada. Reillv. Marks.
Quiel. Frazier, Strickler
NAYS:
ABSENT:
None
Council M~mhp.r Hp.rnnnn~7
/be~
The foregoing resolution is hereby approved this ~
day of
.11lly
1985.
Approved as to form:
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~~ST[R LEASE OF PERSO~AL PROprR1Y
S<:curity pJ.cific N:J.lion:.l uJ.nk, herein referred LO os "LcJsor",
hereby 1ea:es to the undersigned "Lessee", and Lessee hereby
leases from Lessor the personal property Cherei:. called "Equipment")
described below, upon the ter~~ and conditions hereinafter set
fo'!""th:
1. DEr-I:--JITIO~S. For all purposes herein, and for the purpose
of the documents executed pursuant hereto, the following terms
shall have the following meanings (such defihitions to be
equally applicable to both the singular and the plural forms
thereof or to any gender thereof), unless the context indicates
otherwise:
(a) Commitment Letter. "Comiaitment Letter" shall mean
a letter agreement between Lessor and Lessee describing
Lessor's commitment to Lessee to enter into the leasing
transaction described therein under and pursuant to the
terms and ~onditions of said Commitment Letter and this
!-laster Lease and the applicable Lease ScheduJe(s) and
said Commitment Letter shall be deemed incorporated
herein and a paTt,of this Lease and thft app15r~blB. Lease
S~edule(s).
(b) Equi,m.en:. "Equipment" shall mean all t.hat equipme::t
leased to Lessee pursuant to this L~:lse, as more fully
described in the Lease Sche4ule(s) annexed or to be
annexed h~reto. which must be and remain tangible personal
property,'and/or any unit or part t~~reof, tcgether with
a11 ~dQ~itl'on':, ~~C0s'5-cric~, -,t chmen,s co pon~n,'
_ _ __ _ _ _ _ _ .:.:. 3- .. ~ ~ , ;:: ..... : _ ,
::p:.rc
p~:~s thereto 2n2 rigl1t: ~s to wn~.raIlty o~ indemnity
fre;":-,
any scllc~~s J ~u~):;licrs, I~:lTlll[.J.ctU""(,:TS, tr::ulsportcrs or
in~t.J.ll(;~.s tll-::rc.,)l.
(c) EC:~:;~;:~!':.l\ I-:li'" ~.
"[l1.ui~J;ne:'l t CO$ t" 1J1Ll~ 1 mC~ln the
~ ~~ ~ ;- '2 ~: ~l :.. ':::, L l .'
uf ;111 [q~:.:.>:,;c:.:. lCJ.:~cJ to L'':;:'':::;'':l; p~~:.::;t::~:.'-
to the tC:'::l~; 'J: till:: ~lJ~~tC"r Ll::l:';C', or thl~ JLtC'r:7lill~1o:c co::i:
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EXHIBIT
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si~311 prevent LC~~Qr fro~ incrC:15in~: or dccrc~sin~: s~iJ
Equip::\ent Cost on 3ny Le3se Scheuule(s) in 3ccordance
,;ith the provisions of P:lragr:lph 4 hereof, to ploviue for
any clement of s:lid Equipment Cost not reflected therein
or to proviue for purch:lse return", allo\;:lnces or aujusti:1ellts
thereon.
(d) Le:lse Schedule.
"Le:lse Schedule" sh:::ll me:ln :l scheuule
of Equipment listing, describing and pricing :It Equipment
Cost, the Equipment lC:lscd, or to be le3sed upon Lessor's
:lCCept3nce of Lessee's request thercfor.
(e) l,l3.steT Le:lse. Thc te,i:1S "~,!aster Le:lse of Person3l
Property", "l13ster Le3se", and/or. "Lease" and all ,refcrences
thereto, as used throughout this instrument, all L~ase
Schedules and all documents issued and executed pursuant
hereto or thereto, shall mean this instrument as originally
executed or if later extended, renewed, amended or supple-
mented, then as S0 extended, renewed, amended or supplemented.
(f) Net Proceeds.
In'any sale by/Lessor of the Equipment
or an)' ",li t or p:lTt thereof, "Net Proceeds" shall mean the
amount received in cash upon the sale thereof,less all
expenses incurred by or for Lessor in connection wit' such
s31e, in~luding rcconditioning and removal expenses, repalr
costs and commissions, reasonabie :::ttorneys'fees and less
all sums accrued and unp3id to Lessor, pUTsu3nt to this
~13stcT Le3se, to the date of such sale.
2.
LEASE.
Lessce may, concurrcntly hcrewith and/or from time to
tir.'.~
'\c""""" ;:~c- rc~"c.-::t-
.j ~.... u ..... .., ~~ '-" ..;...
the lc~sc of Equipncnt purSu3nt llcreto.
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t h C' f ~ \' 0 r ~l b 1 ere '..-i c ~,; ~ II ~ :.l c ( cpt .:J. n c c: 0 f :l n )' sue :, r c q :.: 2" S t
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LC~;::Jr u~:":'.2:- tLc t27":-:lS 0: ~ CI,.:)J::i~litl~lcnt Letter, or o~l:cr\.:i$c, l.n
,.;he :..::.' or in ;;:l:-~} ~nd l':;'0n Lc::;::;or I s receipt of ~ooJ, mo.rKct3t>lc
anc L.:n~lo:..:J.~'-.: ~i~~c iil .:111J tu the [qllip::~:..~j1t, s~!iJ Eq:...;ir'l~Cl:t ~.1:.:1:
be ::"'_'J:;c'.l Ft~:-:;tl::n: to t:lC te~::1::; of thi:.; i,Ll:~t~r LC:1sc. All i tC!::~ ('\:."
Et~';:.;~~:'-~::t ~L':.:..;,',: ;.;: L~:;.,',";i' ...l_ LL':;;:ce ;i~':'L'..",..:._::' :"::",:111 L__
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01: ::i,-~ l\.',~~'l'-": :J:r:-u.:n:.. ~,} 1:" :~i;;~ropri:::2 Lc;:~-....:: SL:j-"';~::~
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SCllCJulcs s11~11 be sc;)~r~tc 3nJ consecutively nu~bcrcd anJ sh~ll
be for omollnt::; snt i.::; [nctory to I.e$sor.
It is unJer::;tooJ onu
o~reeJ thot units of Equipment moy be m:li.nt:lineJ or 10c:lteJ at
~
different bu::;iness locations, may be scheuuled ot Jifferent time::;,
IIl:JY be le:lseJ for different pcric~s, may require different rent:ll
rates and on 3ccount of any such differences, such units shall,
at the discretion of Lessor, be leased pursu3nt to 3 separate
L~nse Schedule hereto, notwithst3nding th3t said units arc combine~
in one request for le3sc or 1Il3; coexist at one single location.
3. Rc';T. The total rent payable hereunder, including interest
shall be the aggregate rent of and as set forth on each and every
Le:J~e S:hedule executed pursu3nt hereto. Lessee promises LO pay
Lessor s3id rent including interest as indicated 01, the Lease
Schedule(s).
4. LEASE SCHEDULE ADJUSnIENTS. Lessor may make adjustments for
the benefit of Lessee to the Equipment Cost and total rental
listed on any Lease Schedule pursuant to the provisions of
Section lCc) hereinabove and/or Section 13 hereinbelow. Periodic
rental p3yments shall also be proportionately adjusted, so tha: t~e
adjusted total rental will be paid in f~~' by the end of the Lease
Schedule term. Lessor will give Lessee notice of cny such adjust-
ment within'ten (10) days thereof.
S. TER~. The term of each Lease Schedule shall'be and continue
for the time therein provided, or f~r any renewals or Rxtensions
thereof unless earlie~ ter:~in:Jted pursuant to the provisions of
Ph 13 1 "~ h '
:lragr:lp..s ,~, or _.:. creln.
6 .
EGIJIP\lE'!T SELECTIG:! AI'm ORTlE!<ING.
Lessee h~s sclect~d
the
t~.- ,0
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qU2.ntity :lnJ supplicr-s of the Equipment le:lscd hereunder.
Lessee:'
sh~ll cnsur~ th:.t 311 Equip::1Cgt. is properly in\ToiccJ to Lessor.
LCS30r sh~ll l~$~rt ~!:~ ~cri~l nu~bcrt dcscrilJtivc Q3tc~i~ll7
Equi;);~cnt Cost, 3rlJ ut~lcr relcv3~t m~ttcrs on an :lP!'ro~ri~tc LC~:2
SL::Ct::..l ~,~.
LE~~i):~ S:i.\LI. ~GT ~~ Ll:\!~L= r:OI~) Nor~ Sll.\LL TiL: V:\i..I:~I;".
or T;!IS L::.\~=L, 0;: :\~:'l' L::\5E ~~C:i!:~UL= l.F Ar:F[(':';~J EY :\...~y D~~~{\y i',
C'\ :'.\l~.~;:~:~ 0:: Dl.::.I\"I-.:',:' 0:~ ~~.'.,i.~; L-l'.~'.I);.,'~,.:'J' l "
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h3VC no Jllt)" to inspect tile ELillil)lncnt.
If the Equir~ent i~ not
pro~~rly inst~llcJ, doc~ flot ollcratc as rcprcsc~tcJ or w~rr~lltcj
by 3~Y supplier or is uns~tisf3ctory for ony re3son, Le~sce sholl
ffi3Ke ;In)' cl:J.i~ on 3ccount thereof solely 3gninst soiJ supr1ier.
LESS:!: IlEREllY ASSU,IES TIlE RISKS, llURDC.IS AND OBLI (;,\T IO:-IS TO A~lY
surr:'IER 0:-1 ACCOUNT OF NONACCEPTANCE OF THE EQUINIENT AND/OR
CANC:LL\TlOC: OF TilE LEASE ;,em UPON TIlE OCCURRENCE OF SUCII EVENT
LESS0R WILL ASSIGN, WITHOUT RECOURSE OR WARRANTY, ITS RIGHTS AND
TITL~ TO SAID PURCHASE ORDER AND ANY INVOICES TO LESSEE.
7. USE AND ~IAINTENANCE. Lessee agrees to use the Equipment in a
carc:ul and proper manner, and to comply with and conform to all
fed!~al, state, municipal, and other laws, ordinances and reguln-
tions applicabJe in any way to the possession, use or maintenance
of t~e Equipment and to comply with and observe all conditions of
coverage of any policy of insurance maintained thereon by Lessee,
all operation and maintenance instruction~ and manuals and
cust~~ary trade practices applicable to the Equipment. ,The Equipwent
sh311 only be used by qualified (and if r:quired by law or
,.'
reg~lation, duly licensed) employees of "Lessee. Subject to the
forego~ng, Lessee shall be entitled to unlimited use of the
Equ:?~cnt and to operate the Equipment at any time and for any
per:od of ti~e at the convenience of Lessee and Lessee may use
the =quipment for such purposes and functions as it m3Y deem
ncces5~ry or convenient.
8. CLAI~S AGAI~ST SUPPLIERS. Lessor authori~es and appoint~
LeS3ee to e~faTcc, in its o~n name, any claim w~rTanty, ngTcelnc~:
or ~~present3tion which may be made against an)' supplier of s2iJ
Ec.u:.?",ent. BUT LESSOR ,'lAKES NO EXPRESS OR HIPLIED \~.\Rr,-.\:\TlES AS
~ln ,~.,','Y \f'~-;-~~r; 1.'."~'C'\r~"-") I".-"I'nI"G \.IT.....,'..,.... L....'l........\~~~.,.
'-' .:.L'.11L.\ Illl.\l-..JU~VJ.:.h> ,"~LUo..J ~\ , \, .UlJi.Jl l..lll~ ...u,\,
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EX-:~~:<l OF 01,- E:.:~Of~C:.\l.:ILI!Y OF ANY SUCiI ~:".\I7.:, h't\L~~\~<T,(,
ACi\::~:l[~,-:-
orr ::.=pr,=S=:;T;\TIC~1" ~:) D~~:~LCr Ol~ u:,;rrr~!I::~s or 11:[ EQUlr~l;:>:':- S!1.'.L:_
R~~==.,.rr~ Lr=~=::L~ OF Tli:: 0ELIC.\Tll)>J TO P/\Y ;.=::~. Ol~ cr i\:~Y OTl::.~I~ c::-
LIC.:'''l~()~! u:;;)~:~~ .i'i~IS L[.\::~.
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9. D1SCL.\ I ',\Fr; C ,':.\R:~\\TY. U::,;SOP.. ~;OT llEI:\C TilE ~1,\::liL\CTU"::;:
OR SUPPLIER or :\;-.;y or: TilE EQurPHE>iT NOR A DL\I.rl\ [;.J SI:-,Ill.,\R
EQU1['>1[':T. fl.-\S NOT ~lA[)[ ,\:\0 DOES NOT ~l,\KE ^:,y ~.[PRESE:'ITATIO~I.
\';ARR,\:\TY. OR COVE>J.-\:n. EXPRESS OR n:i'LIED, \\'lTl! RESPECT TO TIlE
DESIG:-!, DURAllIl.ITY, FIT>lESS FOR USE, SUITABILITY OR ~IE~CIL...:lTIB[LIT.:
or TilE EQUIPMENT IN A;.JY RESPECT, AND AS BETWEEN LESSOR AND l.ESSEE.
Al.l. EQUIP~IE>IT SHAl.l. BE ACCEPTED AND LEASED BY LESSEE "\'IliEH IS";
"A:: IS" AND "\\'ITH ALL FAUl.TS", AND LESSOR SHALL NOT BE :',ESPO:,SIIlLE
FOR ANY PATENT OR LATE~T DEFECTS THEREIN. LESSEE AGREES TO
SETTLE SUCH CLAIMS DIRECTLY WITll THE SUPPLIERS AND WILL NOT ASSERT
ANY SUCH Cl.AI~S AGAINST l.ESSOR.
10.' TITLE. Title in or to said equipment shall not pass to Lessee,
exc?pt in ~ccordan~e with the terms, conditions and provisions of
this Lease and pursuant to the rights herein expressly granted
to Lessee. Lessor and Lessee do nc: inten~ no~ admit that this
Lease is intended as security, but to the extent (at any time or
from time to eime), if any, that this Lease is asserted to be or
have been intended as security, Lessee and Lessor intend and
agree that Lessee hereby grants a security interest to Lessor in
the equipment leased hereby, the proceeds of any sale, assignne~t,
lease, or sublease thereof, and any other rights Lessee may have
in or to said equipment or proceeds. At the expense of Lessee,
Lesse~ agrees to cooperate "i th Lessor in executing such financir<;;
statements or other documentation required by law, the U.C,C. or
othcr~:ise to protect Lessor's title and rights to said Iqulp~cnt
and Lessee irrevoc~bly authori:cs Lessor to file fin~rlcin; 5t~:e-
ments si2ncJ onl)' by Lessor in all jurisdiction ~hcrc pc~mitted
by 1 a',;.
11. .'\L71~I~.\T l o::'~. Lcs: C~ s h~ t 1 no t i fy LC::j sor :i.;:,j S h~~ll T:'.:. he ~ ~ l
altcr~tioj"'.s, li:oJific:lt i'J;l~) 3:1Jit~ ""'ll~ or ~tt:lC:~:;lC~tS cc::::-,cJ.
il C C ~ ~ ::; : 1 ~:: L :: ~1 ; ~ :: f:.; l~ '_' ~:-: 1 I
S::::t'2 0:-- lLJl:~ll ~\J'.'c:-:;;I.L':--.:.:Jl ~1~..(,..'1...C.:.-
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w:,c Lc;...ti:i:':2:..~ ~:'~(:~:;l:lc::-;:; 0:' the [quipi;l'.:nt. L('~;:-,C'c is ncrl.;b\'
i:L':C.: ~~.~ :-: . '-
it~ ~l)~L' ...:..~',-';';:"'.L',:c :~:;::," ():,!~.:-.:- ~~lL'-':-:::~.':
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r..v-..;.:~~..:.J':.:..on..:.) .:lJ';::":~~I..~ 0;. .1:..l.:l(h~iL~I::'.~, tc l:L,: [,~~:~:1::l..:;: :.~o :'::~.:
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.:15 t~~c VJ.luL' or the u:'-;(':~lIlC:;:5 of the [quip;:,.cnt l~ Lot rClL..:ccd
the 1'('\1::.
Lessee sh:l1. not ~lter, remove, def~ce, destroy or
pcrm~ncntly cover any ~;3:11JfJctuI'crls namCI,l~tcr 5crial nu~bcr
or other s i::1i l:n dist in:;uishing numher or mark on the Equipment.
Except as otherwise agreed by Les~or, all alterations, modi:icatic~3,
additions and attachments of whatsoever kind or nature m~de to
the Equipment sh~ll iQffiediately be subject to all t.,e tcrms of
this Lcase.
12. LAllES.
If Lessor supplies Lessee with labels, plates or
other m~rkings showing Lessor's interest in the Equipment, Lessee
shall affix and keep the same affixed te each separ~tely pl~ced
,or housed component thereof in a prominent place thereon.
13. LOSS ;l'1D DA)!AGL Less-ee shall assume and bear risk of loss
and damage (includin~ any governmental requisition, condemnation
or confiscation) to the :quipment and all component parts thereof
from any and every cause whatsoever, whether or not covered by
insurance.
No loss or damage to the Equipment or any component
part thereof shall i~~~ir any obligation of Lessee under this
Lease, which shall continue in full force and effect except as
hereinafter expressly provided. Lessee shall repa1r or cause to
be repaired all dam2~e to the Ecuipme~t.
In the event _hat all
or part of the Equipment shall, as a result of any cause whatso-
ever, become lost, stolen, destroyed, oi rendered irreparably
un<..::J.blc or d.3.r.I:lged, ~s dctcrmincJ by LI,.._,........2) then Lessee 511::..11
~ithin ten (10) d~ys
after it shall have made
such
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fully infor~ Lessor in ,egoTd thereto and sh~ll pay Lessor the
T~;.;~ininz Tcnt::lls due :lS of tL...; U:J.tc of p2.yment thereof, ar:J ::11.
rcr;::ll~ J.nJ otl~cr $l::i-~~:; p~st due or bL'cor:~.ing due to anJ inclu~~l:~:
~ u:,:}: P:1:: ;:: L: r:: J ~l ~ c) in r l::::' I' C c t ~ f :.:, U C:1 [q u i ~) :::-2;\ t .
Upon p:.:;n:c:: ':
of S:li~ :!l;.I()\~:lt5r t:l'~ !,,:;1~'~ ~(.~\eJlll-.; $h~lll tcrr:~ir~J.tc:ls tD ~:;:Ji,-!
f,:..: i. :)::;(':1 t.
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LL'S::'O:", or:.:.; o:::c:-'.:i..:..: Lc;'ci.n pr0\'L.leJ, LC':~l~l~.1.t
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::I:;rccs to :JnJ sh::lll keep the [,\\1 (['I"cnt aJcqu:ltc1y insured "..i th
res l' C :l ~:, i tJ ~ c i i1 :.: 1I r L r::; S ~ t i :-, f ~H': :. 0 r y toLe ~ $ 0 r. .:1 n....~ S:J i J i ~1 :.; u :- .) ~ c ~
shall protc'ct ::Ill interest o[ Lessor :!nJ be [or such risks,
incluJin:.; the 1 i:lbili ty 0 f Les~o r for pulll ic 1 l:Jbi,l i ty and prcl'c:-:y
dam:lge, and ~c in such :lmoun:s anJ form a::; Lc::;sor m:!y require. Sa:~
in::;urance sh::l11 n:lmc Lessor as on insureJ or aJditional insured on~
sh:lll not be excess ever other coverage but shall be primary
insur:lnce up to :lnd including the stated pol ie:,' limits. Said
insurance 5h311 cover th~ interest of both the Lessor and Lessee in
the Equipment, or as the case may be, sholl protect both the L~sso~
and Lessee in respect to all risks arising out of the condition,
delivery, inst311ation, maintcn~ncc, use or operations of the Eq~iF~~nt.
.
All su;:;h insur::lnce shall provide for ten (lO?' days prior 1;ritten
notice t~ Lessor of cancellation, restriction, or reduction of
,.
coverage. All policies or certificates oi insurance sh~ll be
delivered to Lessor. Said iasurance shall be in such amounts a~
Lessor may require. The proc2eds of said loss or damage insurance
sh~ll be payable to LessQr, but Lessor shall remit all such insurance
proceeds to Lessee at such time as Lessee either (i) provides
Lessor satisfactory proof that the damage has been repairt: and
the Equipment has been restored to good working ord~r and condition
or (ii) has paid to Lessor the amounts 0~her"i5e du~ to Lessor on
loss of such Equipment.
15. TAXES. Lessee shall be responsible for the timely payment anc
discharze of 311 license or registration fees, assessments, salQs
and use t3xcS, rc~t~l t~XCSJ gross recci?ts taxes, person~l prc?e~:y
t:!xcs ::.~d ot:l~r t3XC5 n0'..: or l:cTc~[ter
l'~,,"oscd b" "~V fec',"~-, s+- -,
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or loc.::.l govCr:1.i:1'2n.: upon t!lC:
EllUl' ....n.
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or upon
the Oi.;ners hi p) 1 CJ. 5::':16 ,
pUT':;~:"::C, po::;session 0-:: u::'(: thereof (\>;hctl;cr th~ S:J:~,L' be ~sscsscJ
to L~~~0r or Lc::~~:';)
Lcs~.:.:'~' ::';~:J~ 1 p~lr 2.11<..: Ji_-.::-::::'ze .J.L lc~:~ tC'~.;
(10) J.~::::; L(:f0~'-' Jclill,1ucr:cy ~1n:: '::lJ Jl1 su~li. fcc's, :l,:;SCS5plcr:t:;
;;n
: "'".,..,,'
~ ~.' - -'
c ~ :-c...::: l j- t ,)
: ~ I C
r ;" Ij i'l '-' ~.
1 (' '.' \' ~ ;: '.'
..1 11 ::.1:0~' i :.:: ,
U:1 1 ('~ ~
(; :. ::',:' f'.: . ~- ::
rL"'l:~i~',-",! b:: ~;J'.l 0:- ol::i.::'\:~:':L' di:-'::L~cJ lro;n ~il;,": to ~i::lc by Ll':';~"_.'
LL'., .,"':_' .,,:: 1 :
,~ ;; ':
:;:; L,.", :;,);'
.1 '_' ,~:::l; \ l L -;::
')l :11j:,'
....... ,.-
L.. .', ~ _
Lill(,.~~~ tc
'0,
() : :. '''; :. '..
. ,
l .' .~' ~. c::-: ~ : :..' '.l
I"~, 1..
,.,.:,:., '", (' 1'\
.. . '-,. " L L" (! J
J,: ':.; U,
nu L : 1.:':- .. I,
...-:;._--:-:---
- - ~ ... ...
.'
Lcs:-~.'. Ur~.)f1 notice to Lc::;~or. ~;l!'. In L~~:~CC':; Qhn n~::iC ~nd 3t
Lcssce's expcnsc contcst or protcst ;11\:' such t;ncs.
Lcssce sh;111,
1:: :lJJition, be rcsponsible to Lessor for th<.: p:lyment and disch;][ge
of any penalties or interest. Nuthin~ hcr<.:in shall be construed tc
requ1re Lessee to be so responsible for any feJeral or state taxes,
or p:lyments in lieu thereof, imposed upon or me:lsured by the net
income of Lessor or, except as provided hereinabove, any penalties
or interest resulting from Lessor's failure to timely remit such
tax payments.
16. LIE:\S A:-iD D;CU:,IGR.u,NCES. Lessee will at all times protect and
cefend, :It its 0"- cost and expense, the Lessor's interest in th~
Equipment and keep the Equipment free and clear from all claims,
liens and processes and other encumbrances, except (i) the rights
of Lessor and Lessee hereunder, (ii) liens for taxes either not
yet due or being contested in good faith an! by appropriate
proceedings, so lon~ as such proceedings do not involve any danger
of the sale, forfeiture or loss of the Equi~mcnt, and (iii) inchoate
~ 'I' ., I .. . I
naccrla men s, mecnan~c s, "C~Kmen s, re~~~rmen s,
employees or
other like liens arising in the ordinary course of business and
not delinquent, and (iv) liens and encumbrances arising from the
acts or omissions of Lessor which are net otherwise the responsibility
of Lessee hereunder.
17. INDE~~ITY. Lessee assumes liability for and hereby agrees
(whether or not Lessor is otherwise insured thereon) to indemnify,
prc:ect, save and keep harmless Lessor and its agents and employees
frOCl and ag~inst any and ~ll li3bilities, obligationsJ losses,
c.;J::;;}.:;~S) penalties, cl:li]~1s, t~:~ "_:;J.ims ;)c~ions, suits ~nd procccdi::~s,
ir~..:luJijiZ lc:;~l expenses ~nG Tc:!son;J.blc J.ttorncys' fees, of \~'h.)t~-..c-
ever ~;inl2 :lnJ n:l~~-;-':":. iJ;:~~~~cJ 011, incuTTcJ by or J.:::scrtcJ ~~J.in:.~:
Lcs~or bCC~Li~(: ot t!1l: J:1;.1nL::~ctu:'Cl", purchJ:::'~, tl"ansport:ltion
2. C C ~:) :. ~-. :
0',.' :~ ~.' ~. '..:- :: ;.
C::lcluJ~;l~'. ~b:';'01litc or strict li2.o1.1ity l'~
tor:, cr..;;-.:L.l":~ ,):- ()t~lL'r'.:i~;c) \l:':\.: or rcjcctlun of the E~illl~:~lL':l~
(i;:'.:l~J,I;:-:~'., ,.\~:..;:,,~~t
1 ;.::1: ::::
1 "
";"., ;It('1'::. J.:;,: ctll_'1"
c c ~- '_' c : _-, 1 h' ~ : ,-' : : '
cr 1L;:" "'::_'L,--,l:,-:-:-:::~_.l'~ u'" L\~::::-:\..::' '-~:- LC~;~.'l'l'J) ~lI'.,~ ~1J'\. (~;: ~." :~":'
"., ~ " .
C"""'. ,
tr:,-JC'~,:tr;~ or
. ,
cOi~:: r l:;n t
1 n ~ r 1 l\ ~ l..~ ::: l' It t .
IS. LESSOr..'S rE~rOr..>t,\:\(r OPTlO:\. Should Lessee fail to m:J.!:e an,.
'~ent or to do On\' '~t 00 pro\"tdc(! ;"'." tht',-, L"."I<';.e, tllen Lessor ("".h2:~
p:l).., , ..., ... - ~ - u - - - - - _..
h:1\!e :hc right (but not thc obli~ation), without notice to Lessee
of its intention to do so and without releasing Lessee fror;) any
oblig:1tion hereunder, to make or te do the samc, to make advances
to prcsen'c the Equipment or Lessor' s in~..erest thereto, and to pay,
purchase, contest or compromise any insUlance premium, encumbrance,
charge, tax lien or other sum which in the judgement of Les~or
appears to affect the Equipment or the interest of Les~0r thereto,
and in exercising any such rights, Lessor m3Y incur any liability
and ~xpend whatever amounts in its -bsolute discretion it may deem
necessary therefor. All sums so incurred or expended by Lessor
shall be due and payable by Lessee within ten (10) days of notice
thereo f.
19. ASSIG~:^IENT. Any transfer, -ssignment, sublease, conveyance
or pledge of Lessee's interest in and to tt~~ Lease or the Equipmen:,
"hether by oper:nion of law or ethen,ise, without the prior written
consent of Lessor, shall be ~oid. Lessor, its successors and
assigns, may assign this Lease and/or gT~nt security interests
therein or in the Equipment, in whole or in part, without notice
to Lessee.
20. SURRE~DER OF EOUIPMENT.
Unless Lessee exerciies its option to
purchase under Paragraph 25 hereof, at Lessor's request, upon
cxpir3tion or ciri~licr tc~~in~tion of this Lease, or any rcnc:~31 OT
extcnsio:l :' '-'-'--:;0: \'iith respect to the Equipment, Lessee s:-"::.11 rc~l.:.:':-..
the s~~c to LessoT in gooJ rep~ir, cOr'l.uitioa ~nd \{or1zin:; orJcYJ
C:-c.li::.~ f'J' '.,,....~ ~~ "'1'0..1 -nO)-,- ",-",-t.,.. ~ n'; r:r"r-, .......,.O')nt.
_ .......... <-I........ .......... ...~.::J!~...~....J ...v,,' 1''';' t'-
u:;c
thcr~o-E ~l0~1~
cxccrtc~ (2) b:.' del i-,:c~'~'- o[ :-':-.-2 ~:.;:;c J.~ Lc:.:scc I s cost .1.[1...: '2X:pCr'.~c
... 0 :.; u c ;, ~ 1 .:! C C .J.:i L ':' :: ::; 0 r :.; h:.:1 1 ~ pee i f Y \v i t h in t 11 ceo 1I il t Y h 11. C' res ~ i \.1
. ,'," ; ,', '" ,~., ,-
....., -' .. l' ,.. ~ " ~
is ~G~~:::,_'dl 0:' C;j ;):: lCJ~:i;:~~ t:1C ~.;..,I,~ h'i::~ij~ tl':2 ._,::~~::::-",-
h;~crC' S:l:,-~ ~_:ltL:'~i:::i,.~:l: lS lL~=~:l'-',! J: Lc:':'~,-'~'
cc-..~ ':111,J (':\pc::::-'~
C i ;'; ( : ".:": ~:::::
,-,.' 1 ,. n""'-'
~ <.., - -.' l" - 1
...: ') \ ~ :. ~); .: ~- J
~ i l":::
1..-..,-" ...----.
.1_'
~~:L_':: l :;;'t~L:':;-" ,'j,.'",' '1
:.;; :;.
::._ ..J....>.., rJ' 1~:;: Lt-,l~I.."'::1 tv :\iL'
... /., ,.~ ..--_.... -.'
JC':,;tin.:ltio:l Jc:.;,i:.:.n:1tc.J by Lessor. LC'ss~'~ sh::lll be rcspGfl:;iblc, :l~
its e:\pense. for the pro!,cr and ;ldequ,,~e p~ckin~ and cratin:;; of
tLc Eqtlipl~ent, ".11 ich skill incluJe. i [ Ilece~sary to preserve :In:r
warranties or agreements in respect to the Equipment, the surervisi~~
and/or hJnJling of said p3cking ~nJ crJting by manur~cturer's
representJtives. 'Nothing herein sholl prevent Lessor from abandoning
any or all of the Equipment in place upon the expiration of Lease
terms without any liJbility therefor to Lessee.
21. EVENTS OF DEFAULT. The occurrence of any of the following
events shJll. Jt the option of L(;ssor, constitute an event of
default under this LeJsc:
(a) .The nonp3yment by Lessee of any rental payment when due, or
the nonpayment by Lessee of any other sum required hereunder to
be paid by Lessee, which nonpayment continues for a period of ten
(10) days following written notice thereof fro~ Lessor. .
(b) The fJilure of Lessee to ?erform any other term, covenant or
condition of this Lease which is not cured within ten (10) days
after written notice thereof from Lessor.
-'
(c) The failure or Lessee to meet Lessee's bond or other material
credit obligations when required under the instrument(s) evidencing
such obligations.
(d) The deternination that any of Lessee's representations or
warranties mJde herein or on any statement or certificate at any
given time in writing pursuant hereto or in connection herewith
a~c false or Disle~ding in any m3tcri~1 respect.
2:. RENEDIES. Should any event of default occur and be continuin;,
Lessor
m~v without Tct~kinn
. 0
possession of the leased property, hol~
Lessee li::blc for J11 rents Jnd other su!:,,$ Hhich shall become due
:>.'': r::-.:.: f~,::- ~;~~::- :.l"';c tC'r::~3 0 f this lc2.::c .:J.T1J m.::.y rCC0\CCT such 5~~S
fr8::: LC:.J::C'2 frc.'i~~ ';::11;;C to ti::il" ~s they UCCO:;lC' UUC or ~t ~r.',' tlLC
t:: ere ~ : : r.: ~.
( .'.., , , ,. .,'
...; l. '-' .' 1.._ ~_... I.. ,:
~fl:: ~1l<' 1 i c:lhls
3t~tlltC~ of li!:1i~~~i
::) .
or
L"" '-.,,\ ,TO :;,:: ,'.' r', <0- '\' .. (""
... ~ ~ '-' . .... .'~" ,_ I.:
Lcs~~o~' ,
;" I "l'--""-' i.....,.,. c 'l\t'-., ~"Ol'"
<< II..' '- I.,.; .1'-_' I.. U . ,....... ~ oJ )
0,' )'\'
1 l~ }
r -.. ..-., ;,. i ",' f.,,' ," -.' -, I . "..: 1.-. . \" 1'",; e,"',' '). l-c-' " I.' ,',' ) ,)
...",._..d ~,--:>.....L~_ 1..'-. ,... ".1_",,)_, ,-"~I .l,I....."..,..... V~ .....,~".
. -' . I
F - _<~L'~'.,....
_.:..;......r-~ -." --,
of thl.' Eliltii'~lC:1t (\.:itho~'t li.Jbi.lity to Lt:~Jce thcf,:r')r, \o.'hich lS
herebr expressly waived) and either:
(:I) I:et::lin rosses~ion or the Equipment ar,d te~",in::lte thi~ Lea~e
by gi\'ing L<.~ssC'e ter. (10) J:1Ys IHitteil notice to that effect, in
"hich e\'ent Lessee sh:111 be li::lb1e for all rents ami other sums
accrued 3nd unp:lid prior to such termination.
(b) Lease the Equipment to 3 third p:lrty for the account of Lessee
and recover from Lessee any deficiency between the rents provided
for herein as they fall due and those received from such third party_
(c) Sell such Equipment at public or private s31e, in which event
Lessee sh::111 be liable to Lessor in the amount, if any, by which
the ~et Proceeds of sale shall be less than the plesent v::llue of
the then baranc.c of rent:lls and intert'st due on the Equipment.
Lessor's pursuit ~~d enforcement of anyone or more remedy shall net
be deemed an election or waiver by Lessor of any other remedy. Any
~et Prc~ceds received by Lessor in excess of all rem::lining rents
and other amounts due Lessor hereunder sha:l be received for the
account of Lessee but Lessor shall have no liability for interest
'thereon. Lessor sh::lll not be entitled to recover a greater amount
in damages th::ln Lessor could have ~ained by receipt 'of Lessee's full,
ti~cly and complete periorm::lnce of its obligations pursuant to the
terms of this Le::l~e.
In addition, Lessor shall attempt in good
faith to mitigate its d::lmages, but Lessor shall not be obligated to
sell or re-lease the Equipment and in the event of any such sale
Lessor ill:!.)' bid u;;on <1r.'';' pUTch<lse any of the Iquip"":~t. Any sale 0:'
rc-lca~c ffi3Y be held at sue!l place or p13cc~ as ~re selected b)' LC~50r
\{l't~, or \.:li,~.o"t ',",:"'-1n-:: t',l" El'''~T""'\''lcn plC' ent
_. ~ ... _ - 'I":j,:...t '~-, -
An~ stIch sale or rc-
lc:;.:;c J r.:.:1)' bc .:It \.;1:ol,;~:,~l,,,-' 07 r:::t:.l.:.l, in bul~. or i~l p.'J.Tc21s. Ti::-:2
0;;..2 c:-:J.c:itu~:',:: oE c:iC!l 0l t::c ~C;~::l::; and cOr1,..:::.:ic;::; of the Lc.'J.:-~c J.:',-~
he;" c ~) '/ J l.' l: 1 ~~ :' c ~ t C) be ('1;- ~ 1: c (' :::. ~ en c c .
I -. - ,- 0 r ~" \" '"1 ~ -., q t n'l - t' ,1,. .-,
J L.::, -' I""....... L 1..... I' ~. ..::' '- ....~.-
......".,.. ". - \.'~' ~ " . :,",.", .,'.~.,. 0',' tl,i,',-, ',,\',.1,',.'. :1',~.:, I'.:" :-'"".'\..',
~J":''''_':''-':' ,~..::;jUL 1:";O'.:i::.'ll":-.: ~ _" . , _I_ . L"
h:l~'_'~;i-': Ji~;: ~~L::':l~..::. ri:.:~i~:~ IJ;' L',,-'~~'..,L)r :ll~~'CUih~;'..':'.
E:--'CC;1t :1~~ C:q~:-L._
'..
! J , ,~ '
. ,
; : '-' : '..' ~ ; -: ,
,....:: :
..l: >
,-:' ill.
.' __ L':'"
:~ L .; ~ :
,~' ~ ~~;,'
C'
. ,
0::. ,. ," ',.;',' )'\.. - -I'
, ~ I.. L.;.J, ~, ,-' ;:.,
,,;1 ,):' ili.:i...l\.;;ll.l! \.l.ll:::~C~-.
._P,"_" I
_':-'. _.....,..1
23. LOC.\Tro\. The IOCJtion of the Equip::1erlt shJll be :J::; hercinJto,"-'
set forth nnd Lessee shall not remove sa~J Equipment theref~om
\,,'ithou~ thL' prior Hrittcn consent of Lessor.
2~. I~Sr[CTIO\ ny L[SSO~. Lessor, its agents or employees, shJll
Dt any and all reasonable times during business hours have the righ:
to enter into and upon the premises where any Equipment may be
located for the purpose of inspecting the same or observing its use.
25_ PURCHASE OPTIO\_ Upon Lessee's repayment of all rents and other
sums provided for In any Lease Schedule and upon the termination
of the Lease term or any renewal thereof, all the right, ~itle and
inteyest of Lessor in and to the Equipment set forth in its Lease
Schedule sha)l vest in and become the property of said Lessee upon
payment of One Dollar ($1. Ou) and said Lessor covenants that it will
thereupon execute to Lessee, a Bill of ?ale of all its ~ight, title and
interest in and to the Equipment under said Lease Schedule as eviden~e
of said transfer of title. Anything in this Master Lease to the
contrary notwithstanding, all replaceme9ts, equipment, repairs or
/
accessorIes made to or placed in or upon said Equipment shall beco~e
a component part thereof and title thereto shall be immeciiately
vesteci in Lessor and shall be included under the terms hereOf. All
advances made by Lessor to preC^rve said Equipment or the interest
of Lessor therein, including attorney's fees, or to pay insurance
premium [or insurance thereof or to discharge and pay any t~xes,
liens or cncui~br~nccs t!lc~2on shall be added to the unpaid balance
of rcn:~ls d~e hcreund~r and s]l~ll be Tcp~y~blc b)r Lessee to Lessc7
ij.;::-lcc!i:ltcly upon OC1::3.n...:., 3nJ, if not pJid upon Jcrr;~ndJ .::.:::.11 bc~r
interest ~t tLc T~tc 0:
t ('n
pCl'ccr.: (
1 (1
0,) P"" ~111"'~
" '- ~ .... . l, ,,,
t.::-:.::~ p.:ic.
:C,. l~:'j::.;'.r=~~';'. .-\i::: ~r:;()l;r.t:, 'll'quil'C~ to be [):1.:.J C': l.cs:.:ce rur::;t':~l;jt
t. iJ r. hi:.; L ''': ~t ~~ L' ~ n l: n c:' :,1 i \ 1 \::. ',.' ;1 J 11 L' ( C :': L C P ";: 3. :; c::: L~ J:~: l' J i n r ~l 1':1 ~: r :: 7- >
.....1(.1) h'_'rcin:J:j0\<(~) sl-::!ll bl.':l;- ~lLL:;tic~;,:l ir,Ll.':--.::..:i:: ~!l the :;rL':l~"_~:"
1"'::' ~ ,-'
(~
"~~~'"(J~~::~"':~ ;;":-:::,:11 ':
, ,
~: :; "
b ,; .; L' II l~;" 1 ::
J. YC:J;-
h.: \' i n~: J;.) 5 J:1 y ~~ I
" .- - .. "" ,
..~ \... '"' '-" ". .
1".
'-.- <
" '
,- ,. '-" -' "
d t- (1)
L ,.
, .
.,);_ I ~
tl : ~ ., : -. . "
..'- .'
i.. L',--' ~:: c:
~~:::\.~ .", \.~~.
ti.'ll
['c,C,;", (
1(1
',)
w pc:- :1rlnl::~L
. .... ,.
".
"
, '
O.
~, .
II: ,\:1 I ::r.:; .
s (' C t i G il h \.... J. J i [', ":: her c i;1 .1 r c u:; c J ( 0 reo :1 ': c n i. c nee
~
on1:' :JnJ sh:dl not othC'f\:ise affect the provisions of this Lease,
2S. Errr:CT or: l':,\f','[[;. 1'0 failure or Jcla}' on the p:lrt or Lessol-
in the exercise of :In}' po\{er, ri1::ht or privilege hereunJer shall
oper:lte as :l w:liver thereof, nor shall :In}' sin1::le or partial
exercise of any such power, right or )1rivilege preclude other or
further exercise thereof 'or any other right, power or privilege.
All rights and remedies existing under this Master Lease arc
cu~ulative to, and not exclusive of, any rights or rem~dies
otherwise available.
29. SU:.\'TV,\L OF liARR..-\NTIES. All agreements, represe:1tations and
-
w:lrranties of Lessee made herein shall surviv~ the ter~ination of
-
this ~l:lster Le:lse and allY Le:lse Schedule.
30. APPLICABLE LAW. This Master Lease, the Lease Schedules and
all documents issued or executed pursuant hereto and the rights
and obligations of the parties thereunder and hereunder shall be
governed by the laws of the State of California.
If a:1Y provision
of this Lease or any remedy provided herein be invalid under any
applicable law, such provision shall be inapplicable and deemed
o~itted, but the remaining provisions of this Lease ~hall be and
remain effective in accord:lnce with their terms. THIS ~L~STER LEAS~
~!AY O:\LY BE A~lE:JDED OR ~10DInED BY AN INSTRUI-IENT IN WRITING SIG~:ED
BY A DULY Au.i-iORIZED REPRESE:-nATIVE OF THE PARIT TO BE CH).,RGED
TIlErE;Y. LESSEE U~iDL3ST,-\;mS AND AGREeS THAT NEITHER THE SUPPLIER
1\O~ A::.Y SAL::S;,L,,;>i IS AN AGE:<T Or: LESSOR, Ai\D NO SUci{ SUPPLER OR
SALES:-L,,::' IS AUT,-:OREED TO AL lEi'" A:,I[,,:D OR ADD TO ANY TEl',:-: OR
CO~DITrc~ OF Ti-lIS ~lAST[R LE.~SE, AND NO .\~Pl~=SE:~TATIO~ AS TO TI.le
EQUlr:-;~:-:T or. (\~,"'/ O':-;l:::: :'L\TJ.-=:~ BY.;:':'" Slj:"I?LI:r: Oi~ S..\LES:,L-\~: S;;.\L:" Ll'.
A~:':' '::.\'t :~r;:~I':::I' L[SSL~ 1 S :JeT': TO 2;\'1' r~[:<T ;\~~D P[::r:OI\.o\j ITS ,:--.iHE!:
r":~:~Ic;,\~rO::5 :\S
,-' ~..~
~LL
l:,~ F '; :; i ~ = :~ ~ : ~! .
32-. ;~;:~~'::'~'=:~:' \~~~-.:.
TIll,,) :,L~_~,~ci. LL':l~. ::L::: lh" c:,:ccl.:tcd in :1:1:: :~l:::~,
O~ COL;::.:I~:':;:'::-:'~:, e.lc;1 0~' \o:,:...:.!\ :.ilL:.. i. b\..~ JL":::\L';.l ~ln ori.L:ii~~~l, I""
:..',L ::: (2:::::. '~-:.;; : ;.: .J
, '.:' : :; ,~' :
,_I, '
,-', :: .', : : : ~,' .
.; ~.
'..., . .'\.'
~::,::~ :";~"..i::.''''':::\~_':~;. \-::\C~';): ~,) l:,': co\:\.::.',. It ~l!l::, l;:,l:. ~L~:..; ~Ll:'~_':-
, .
"
,
LL':1~C conJtitt1t('~ C!l:lttcl p:1i)cr, no security intcrc~~t therein lll;1j'
be c r e:lt c' ,I eX c e p t t h rOll S h t II c t r:1 n ~ fer 0 r r 0 ~ ~ e 5 5 ion 0 f t h cor i,~ i r; :,tl
countel'i':Jrt, h'lIich m:1Y be so iJcllti fict.! by Les:::;or.
32. :\OTiC::S. All correspondence, l',-,yments :lnd/or notices required
01' pCl'1;\itteJ to be givcn sh:lll be In Hriting, ond m~y be pcr:::l.n:Jlly
scrvcd or ;ent by'Unitcd St~tes m:Jil with postoge prep3id and
properly ot.!Jrcssed. For thc purposcs hereof, thc addresses of the
p~rties hereto (until notice of a ch3nge thereof is scrved os
provided in the preceding scntence) shnll b~ as follows:
LESSOR:
LESSEE:
SECU!~ITI' P,\CIFIC 1(\T10:\;\L B^,\;K
c/o SECU~ITY PACIfIC LL~I~G CC~~OR\TIO~
r.o. B9x 7722
S:Jn Froncisco, C~ 94120
CITY or SAN BERNARDINO
250 West Clu5~er Street
San Bernardino, California 924G8
33. REPOSSESSION. LESSEE ACKNOnEDGES THAT, PURSUANT TO PAR."'CRAPH 22
HEREOF, LESSOR HAS BEEN GIVEN THE RIGHT TO REPOSSESS THE EQUIH1E:n
, .
SHOULD LESSEE BECO~lE IN DEFAULT OF ITS OBLIGATIONS HEREUNDER. LESSEE
HEREBY \~AIVES THE RIGHT, IF ANY, TO REQUIRE i.ESSOR TO GIVE LESSEE
NOTICE A:\D A JUDICIAL HEARING PRIOR TO EXERCISING SUCH RIGHT OF
/
REPOSSESSION.
.D:lted:ls of:
~larch 19. 1985
SECURITY PACIFIC LEASING CORi'ORATION
"Attorney-In-Fact" For
SECURITY PACIFIC NATIONAL BANK
"LESSOR"
CITY OF SAN BERNARDINO
"LESSEE"
By
By
Title
ContLlct Administrator
Title
Lcase ~o. 3927
By
Title
.. .~ r .
" '
..
\._' ~. ~ L \.. '_ :... ~_ _ ~
SECURITY PACIFIC NATIONAL BANK
f
~~
EXECUTIvE OFFICES FOUR EMBARCADERO CENTER SUITE 1200 . SAN FRANCISCO. CA94111 . P,Q BOX 7722 1941201 . (415) 445+4482
March 19, 1985
CITY OF SAN BERNARDINO
250 West Cluster street
San Bernardino, California 92408
Attention: Mr. Dean Meech
Purchasing Agent
Gentlemen:
We are pleased to inform you that, pursuant to your request, we
are agreeable to entering into a leasing transaction with you in
accordance with the terms of the Master Lease and other documen-
tation enclosed herewith and upon the following additional terms
and conditions. The capitalized terms used herein have the same
meanings as set forth in the Master Lease.
Lessor:
SECURITY PACIFIC NATIONAL BANK
Lessee:
CITY OF SAN BERNARDINO
Eight (8) Used Xerox Copiers
Eauioment:
Lessor reserves the right to approve
any and all items of Equipment prior
to any scheduling under this leasing
line.
This commitment specifically excludes
any item or items of Equipment with
a unit cost of less than $100.00.
Cost of Eauioment:
Estimated at: $79,000.00
Lessor has approved the leasing
line hereunder for the full estimated
cost. However, in the event of
cost overruns, Lessor reserves the
right to exclude undelivered and
unaccepted items of Equipment in
order to stay within the estimated
Cost, or to include such items and
to adjust the Rentals and rental
rates on this overrun.
EXH13lT B
'~
;;iiiiiiiii".,
SECURITY
PACIFIC
NATIONAL
BANK
2
Deliverv and Takedown:
March, 1985
Equipment Location:
San Bernardino, California
Interest Rate:
Three (3) Years
9.75 percent
Base Term of Lease:
Rentals:
Lessee will be required to make
twelve (12) equal consecutive
quarterly rental payments, each in
advance, at $94.81 per $1,000 of
Equipment Cost. Should the proposed
leased Equipment not be accepted by
Lessee and the Lease Schedule not
executed prior to the Expiration Date,
referred to below, Lessor reserves
the right to extend its commitment
with respect to any portion of this
transaction beyond the Expiration
Date andlor to adjust the rentals.
Propertv Taxes:
Lessor intends to report for assess-
ments all property located in Cali-
fornia. Lessee shall reimburse
Lessor (or upon Lessor's request,
pay directly,) such California
property taxes, including (except
where caused solely by Lessor's
acts or omissions) any penalties,
interest and costs of Lessor asso-
ciated therewith.
Treatment of Lease:
Lessor and Lessee expressly decline
to make the election (and Lessee
will not take any action which could
be deemed to constitute an election)
to have the Special Rule for Leases
provided by Section 168 (f)(8) of
the Internal Revenue Code of 1954,
as amended, applied to this trans-
action.
Purchase Aqreement:
At the expiration of the three (3)
year lease term, Lessee agrees to
purchase all of Lessor's right,
title and interest in and to the
Equipment for one dollar ($1.00).
~
'$5
iOiiiiiiiii".,
SECURllY
PACIFIC
NATIONAL
BANK
3
Insurance:
To be provided Lessor in accordance
with the enclosed Lease Insurance
Authorization Letter, prior to fund-
ing.
Lease Schedules:
A $10,000 minimum Equipment Cost
requirement will apply on all lease
scheduling under this commitment.
Should Lessee request scheduling
for amounts between $5,000 and
$10,000, a $150.00 scheduling fee will
be due and payable upon execution
of the Lease Schedule.
Financial Statements:
Annual report to include Fund Balances
is to be mailed to Security Pacific
National Bank within 120 days from
fiscal year end as well as such
other information as the Lessor may
from time to time reasonably request.
This Commitment Letter is subject
to Lessee being qualified as a govern-
mental entity of "political sub-
division" within the meaning of
Section 103 (a) of the Internal
Revenue Code of 1954, as amended,
and that this transaction will con-
stitute an obligation of the Lessee
within the meaning of said Section.
Lessee agrees to cooperate with
Lessor in providing evidence as
deemed necessary or desirable by
Lessor to substantiate such tax
status.
Tax status:
ODinion of Counsel:
Lessee shall provide Lessor with
an opinion from Lessee's counsel
stating that the Master Lease of
Personal Property was duly authorized,
executed and delivered by Lessee
and that the leasing transaction is
a valid and binding obligation of
City of San Bernardino in accordance
with its terms.
Such opinion shall also affirm that
the Lessee qualifies as a governmental
entity within the meaning of Section
103 (a) of the Internal Revenue
,@5'
~- t
SECURITY
PACIFIC
NATIONAL
BANK
4
Opinion of Counsel:
(continued)
Commitment Fee:
Code of 1954, as amended, and that
this transaction constitutes an
obligation of the Lessee within the
meaning of said Section.
Counsel shall also opine that all
necessary filings have been made in
order to comply with fraudulent
conveyance or other credit protection
laws, including laws complying with
Bulk Sale, if any, in the state of
California in connection with the
sale and leaseback of the subject
Equipment.
Said opinion shall be delivered
to Lessor prior to the commencement
of said Lease and said opinion must
be acceptable to Lessor's counsel.
A $1,484.00 commitment fee is hereby
due upon receipt of this letter.
This fee is based upon the estimated
total Cost of Equipment to be leased
hereunder and will be applied to
the first rental payment(s) on a
pro rata basis as Equipment is
leased.. If the lease line is not
utilized, fully or in part, any
portion of the commitment fee not
applied to rentals will be retained
by Lessor in consideration of its
work and commitment hereunder.
Lessee Representation:
Documentation:
Lessee hereby warrants that this
transaction does not violate any
terms or conditions of any material
credit agreement or any other agree-
ments or instrument to which Lessee
is a party.
The following additional documents
are necessary to this transaction:
a) Master Lease of Personal
Property
(original and one copy)
b) Amendment to Master Lease of
Personal Property
(original and one copy)
c) Resolution
(original and one copy)
~
'$i
---~
SECURllY
PACIFIC
NATIONAL
BANK
5
Documentation:
(continued)
d) Information Form (one copy)
e) UCC-l Financing Statement
( one)
f) Lease Insurance Authorization
Letter (two copies)
g) Commitment Fee Billing Invoice
h) Opinion of Counsel
Please execute items a through f
above and return them to Lessor,
along with items 9 and h, as soon
as possible. Upon Lessor's accep-
tance, copies will be returned for
Lessee's files.
The form, substance and enforceability of all instruments required
by Lessor in completing the transaction proposed in this Commitment
Letter must be satisfactory to Lessor's legal counsel. Lessee
agrees to give Lessor such evidence of compliance with the con-
ditions of the Commitment Letter as such legal counsel may require.
Expenses incurred for or attributable to any significant amount
of lease negotiation, tailoring, or redrafting shall be for the
account of the Lessee.
Expiration Date of
This Commitment:
Lessor's obligation to acquire
and fund Equipment hereunder, term-
inates and expires on March 31,1985.
If the Equipment has not been delivered at the above described
Location and accepted by Lessee on Lessor's forms prior to the
above Expiration Date, or there is, prior to said Expiration Date,
in Lessor's opinion, an adverse change in Lessee's financial con-
dition since the date shown on the latest financial statement(s)
which Lessee has furnished Lessor, then, at Lessor's option; Lessor
may terminate its obligations under this Commitment Letter as to
any Equipment which has not theretofore been accepted by Lessee
on Lessor's forms.
This will be a non-cancelable net lease transaction whereby main-
tenance, insurance, full indemnification, property taxes, documen-
tation costs and all items of a similar nature will be for Lessee's
account.
It is understood that Lessor's obligations are contained only
in this Commitment Letter and any amendment to it in writing,
signed by Lessor's authorized officer. The provisions hereof
supersede all prior and contemporaneous discussions, lease appli-
cations and proposals with respect to the transaction described
herein.
't ~
!..
SECURITY
PACIFIC
NATIONAL
BANK
6
If Lessee agrees to enter into the leasing transaction and obtain
Lessor's firm commitment on the terms set forth in this Letter
and in the Master Lease, Lessee must indicate Lessee's acceptance
by executing and delivering to Lessor, at Lessor's office in San
Francisco, California, the enclosed copy of this Letter within
ten (10) days from the date of this letter.
Please be assured of our desire to give you the best and most
efficient leasing service.
Very truly yours,
SECURITY PACIFIC LEASING CORPORATION
"Attorney-in-Fact" for
SECURITY PACIFIC NATIONAL BANK
By
ACCEPTANCE:
Lessee hereby agrees to enter into the leasing transaction described
herein on the terms and conditions and with the agreements and
covenants as set forth herein and agrees that this Commitment
Letter shall constitute part of the Master Lease.
CITY OF SAN BERNARDINO
Date
By
Title
By
Title
Enclosures
JJW/lsj
cc: Roger SpraguelSPLC
A1'lEl\l)~lENT TO
MASTER LEASE OF PERSONAL PROPERTY
Reference is made to that certain Master Lease of Personal Property
dated as of
March 19
, 19~ by and bet,ween _CITY OF
SAN BERNARDINO
("Lessee") and
SECURITY PACIFIC NATIONAL
BANK
("Lessor") .
1. Section l(a), Definitions: Equipment is hereby amended to
specifically include in the definition of equipment items of
personal property sold by "Lessee" to "Lessor" and leased back to
I'Lessee" by IILessor'l.
2. Section 6: Equipment selection and Ordering is hereby amended to
provide, in addition to the provisions existing therein, that
"Lessee" is familiar with the condition and usefulness of any Equip-
ment sold by "Lessee", to "Lessor" and.,that "Lessee's" execution of a
bill of sale, satisfactory to "Lessor," and .Lease Schedule shall, for
purposed hereof, by "Lessee's" acceptance and certification as to
said Equipment.
3. "Lessee" hereby represents and warrants good and marketable title
(free from any liens or encumbrances) to Equipment to be sold by
"Lessee" to "Lessor" and "Lessee's" rights to transfer said
equipment.
4. Except as herein amended, all terms and conditions and provisions
of said Master Lease of Personal Property remain in full force and
effect.
Dated as of March 19 , 1985 .
SECURITY PACIFIC LEASING CORPORATION
"Attorney-in-Fact" for
SECURITY PACIFIC NATIONAL BANK
IILessorl'
CITY OF SAN BERNARDINO
IILesseell
By
By
Title Contract Administrator
Title
By
Title
ORIGINAL
~Y&.lIRIT 1\.
... ~">l.' " I ...
Rei:..i~t.I'.. loCI.
.u.....nCI "T.
".0.110>( ~l'.
_o............"'-u.)
(w'loIJIJ.illJ "
Ul\:H0RM !=OMU,t"C!AL COiJ.--f1NAl\:CH,G STATEMEhlT-FORM UCC-l (REV. 1/7.6)
IMPORTANT-Read instructions on back bafore filling out form
F"
This FINANCING STATEMENT is presented for filing pursuant to the Colifornio Uniform Commercial Code.
1. DEBTOR 1......5T NAME rIR5T'--1.. AN INDIVIDUAI-I 1 A. ..OC;IAL tiltCURITY O~ TeDly...l. .,..... N'j
CITY OF SAN BERNARDINO
2. ADDITIONAL DEBTOR U" ANVI
I ~AST ".AMIt f"IR"'fL-Il'" AN INDIVIDUAl..
j1C CITY ....An:: 110.92Z04'OC~l.,C:
San Bernardino, California n
2A. "OCIAI- KCURI'JY OR fI!:Oc:.IUl-. T"'J: HCo
1 B. MAILING ADDRESS
250 West Cluster Street
2e. MAILiNG AUDRE55
12C. C:T'
;jT"'TIE
120
Zl~ COD(:
3. DEBTOR'S TkADE: NAMES OR STYLES II" ANY)
3.... FEDeRAl- T...X NUMBER
h.\a.l1E
SECURl1Y PACIFIC NATIONAL BANK
Post Office F:1X 7722
San Francisco .TAn: Cali fomi a
4A. SOCIAlSlCURITl..,.. HDtRAl TAl ''',
OR .un; TRANtilT AHD "..11.. tlO
4. SECURED PARTY
.....ILING ADDRIESS
95-2772475
CITY
... COOK 94120
5. ASSIGNEE OF SECURED PARTY 'I" AN....
5A. SOCIAL 5lC"RITY liD. rEDtRAl TAl JlO
011 IUIIIi TlIIAHSIT AMet" I,A. "0.
N...ME
MAILING ADORlE5S
CITY .TATE. %1" COCII
6, Thi. FINANCING STATEMENT covan the Ic!lowing type. or item. 01 property (inclu':e description of real pr"?erty on which
IGcctad and ownar of record whan requirad i>y ;;.;truction 4).
Eight (8) Used Xerox Copiers leased P""'suont to that \bster Lease of Persona]
Property (number 3927) dated as of ~urch 19, 1985.
Proceeds of Collateral are also covered.
7, ~ ,
CMt.CK 17A.
IF APPLICABLE: I
I
a, CHECK [gJ
IF APPLICABLE
O PRODUCTS OF COLLATERAL
ARE ALSO COVERED
78. DEBTOR IS) .IGNATUFPl! NOT REQUIRED IN ACCORDANCE WITH
INSTRUC; ~ON II fa) n ;i;.M:
OW 0(2) 0(3) 0(4)
o DEBTOR IS A. uTFtA.N8MITTING UTILITY" IN ACCOR>.;,;."NCE WITH UCC t gt05 (I) (n)
9.
DATa;
03/19/8'1 ~
j:
10, THIS SPACE F() , USE OF FILING OFFICER
(DATE. TIME. fiLE NUMBER
AND FILING OFFICER)
..
.IGHATUIUt(.) 0' DEBTOR,.)
CIn' OF SAN BER."lARDINO
TYPIE OR "RINT NAME(S) OF DESTOR.a)
po
SIGNATURIE(BI or SECURED ",,,R"fIU) Contract Administrator
SECURIn' PACIFIC LFASING CORPORATION
"Attorney-in- Fact'
,_;,~, ,t J:,,,~~}~!,~E(,:\ It\lJ.1'u~-b\q,J;'A~F;'l~l ONAL BA"K
11. Return copy to:
I! 5
,-II 6
I!
7
I 6
"
EXHIBIT r
k'\;,~[
SI:CURlJY PACIFIC NAIlC""! BANK
Post Office Box 7720
S:m Fr:mcisco, Cal.ifoYl,i;:: 9t.120
~JS~[SS
CI:Y
,.
.~
LEASE l~SUAANCE AUTIIORIZATION LETTER
Re:
CITY OF 5AK BERNARDINO
Note: Compte1e inSUf:lnCe Broker's
name
Addre.ss.
City. State, Lip
and Phone Number
Of il.gent does onf provide both coverages, p1t3.5C
use fevCnc ~ldc fOf the physjcal da.'1lagc carrie:-)
To:
Altn:
phone:
ThtlNSURANCEREQUIREMENTSlistedbdowarerequi,edtoeover: Eight (8) Used Xerox Copiers
1:!ili equipment i5/will belo<:ated at ZSO We"t Cluster Street. San Bcrn<lrdino. CA
Evidence of insuranee in the form of a binder or cover letter i5 aeeeptable until form-l certificates can be'i5sued. Mail this
within five (5) working days to:
SECURITY PACIFIC NATIONAL BANK
(hereinafter "Security Pacific")
A TIN: Insurance Specialist
P.O. Box 7722
San Francisco, California 94120
I. BODILY INJURY AND PROPERTY DAMAGE REQUIREMENTS
A. $1,000,000 single limit Bodily Injury and Property Damage Coverage. ,
B, Endorsement: It is understood and agreed that Security Pacific i5 included as an additional named,
insured with rc:spCl:l La the ownership, maintenance or existence of certain personal
property leased to the named insured by Security Pacific and that the insurance company
shall be liable under this policy for the full amount of the loss up to ao<l including the
total hmils of liability as set forth in the declarations without right of contribution from
any contingent insurance which may be effected by Se,:"rity Pacific. It is aJ"." understood
that the leased equipment is leased on a net finance basi5. i.e., a non-operating lease, and
that Security Pacific has no maintenance Qr other oblir3.tions with respect thereto.
. C. Endorsement: It is understood and agreed that thi5 policy shall not be cancelled nor any reduction or
restriction of coverage be effected until at least thirty (30) d:lYs prior written notice has
been given to: Security Pacific, Attention: Insurance Specialist, P.O. Box 7722. San
Francisco. California 94120.
/"
11, PHYSICAL DAMAGE REQUIREMENTS
A. All Risk Coverage for not less than S 79 , 000 . 00
B. Endorsement;- It is understood and agreed tha\ Security Pacific is included as an additional named
insured with respect to the ownershi;, maintenance or existence oC ceruin personal
property leased to the named insured by Security t acific al~J that the insurance company
shall be liable undcr this policy for the full amount of the loss up to and including the
totOlllirnits of liability as set forth in the declarations without right of contribution from
any contingent insu;~nce which may be effected by S~":::rity Pacific. It is :ilia understood
that the leased equi~nent is leased on a net finance basis. i.e.. a non-operating lea.sc. and
that Security Pacific has no maintenance or other obligations with respect thereto.
C. E:1dorsement: It is understood and agreed that this policy shall not be cancelled nor ;lny reduction or
restriction of coverage be effected until at IC35t thirty (30) days prior written notice has
t-"C'n given to: Security Pacific. Attention: Insurance Specialist, P.O. Box. 77:.1, ~>n
Francisco, California 94120
- A sta.ndard lender's loss pJ.yable cndoncmclll may be subSlilutcd for Item H(B).
The undersigned Lessee hereby authorizes )'OU to provide Security Pacifj,,; (he above coverages:
NOTE: Enter Lessee's NJmc:
CTTY Or- S^N nERN^RDTNO
By:
Title:
Date:
9/S ~
*".SEE TCr)**
rVUh.JI'-