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<br />Page 3 <br /> <br />(e) Nonappropriation. In the event oufficient fundo are not appropriated for <br />the payment of the rent required to be paid in the next nucceeding Renewal Term, and <br />Las ace has no fundo legally available for rent from other oourceo, then Laaace may <br />terminate thio Agreement at the end of the Original Term or the then current Renewal <br />Term, aD the caoe may be, and Lococe ohal1 not be obligated to mak~ payment of the rent <br />beyond the then current term. LeGoce agreeD to deliver notice to LeDDor of ouch <br />termination at lenat 60 dayo prior to the cnd of the tl,en current term. If thin <br />Agreement is terminated under thio Dub-part, Lcnocc agreeo, at Lcooee'o coot and expenac, <br />peaceably to delivery the Equipment to LeDDor. In addition, LeGoce agreeo, at Lcasee'n <br />coot and cxpenoe, to incur the neccooary cooto and expenoeo to bring the returned sweeper <br />and truck chaooio up to factory rcm.::ll.-ket.ing otandardn. '1'0 t.he extent. lawful, Leooee <br />covenanto that it will not, until the date on which the next ouccecding Renewal Term <br />would have ended, expend or commit any fundo for the pUl.-chaoc or uce of equipment to be <br />used for the Dame purponc aD, or a purpooc functionally equivalent to, the Equipment. <br />Notwithotanding anything in thin J\greement to the .contrary, thc.provioiono of this <br />sub-part shall !Iurvive termination of thio 1\grccment. <br /> <br />3. REPRESENThTIONS hND COVENhNTS OF LESSEE. LeGGee repreGcntn, covenanto and warranto <br />to Lesnor ao followo: (a) Lennee in an entity dcncribed in Section l03{a) of the' <br />Internal Revenue Code of 1986, aa amended; and will do or cause to be done all things <br />necessary to preserve and keep in full force and effect itD exiotencc an ouch an entity. <br />(b) Based upon the repreoentationo, covcnanto and warranties of Leaoar, the execution and <br />delivery of thio Agreement by Leooce and performance of thin obligationo hereunder io not <br />prohibited by the Conotitution and lawo of the otate Gpecified.on the Certificate of <br />Acceptance (the "State"), and haa been duly authorized by re!lolution of the governing <br />body of Lessee (a certified copy of which ahall be attached to the opinion of Lenseals <br />counoel); and Leasee haD obtained ouch other approvalo an are necessary to conoumrnate <br />this Agreement. All requiremcnto have been met, and procedures have occurred, neceoeary <br />to ensure the enforceability of thio Agreement againot LesGee, and Lesaee has complied <br />with such public bidding requiremcnto as may be applicable to this Agreement and the <br />acquisition by Lessee of the Equipment hereunder. (c) Leonee has determined that a <br />prescnt need exiots for the Equipment which need is not temporary or expected to diminioh. <br />in the forcoccable future. The Equipment in eGocntial to and will be uoed by Leosee only' <br />for the purpose of performing one or more governmental functions of Lecoce consictent <br />with the permissible scope of Lessee'o authority and will not be used in a trade or <br />buoineos of any person or entity. (d) LeDoee will annually, upon request, provide Leosor <br />with a letter from the City'o accountant otating that fundn have been appropriated in the <br />City's annual budget to continue thin lcaoe for the next renewal term. (e) The Equipment <br />io, and ahall remain, pernonal property and when oubject to uoe by. Leaoee under this <br />Agreement will not be or become fixtures. <br /> <br />The LeGsee further warranto that thin lcaoe will not conGtitute a "private <br />activity bond" within the meaning of Section 1111 of the Internal .Revenue Code in that <br />LeG see will not subleaoe the Equipment, nor will Lecoce enter any management, output, or <br />similar types of contracto where morc than 10 percent of the proceeds of the lease <br />purchaoe agreement will be used for one or marc private buoineos USCD or where the <br />payment of the principal of, or intereot on, more than 10 percent of the procecdo of thio <br />Leaoe will be made, either directly or indirectly by payments, property, or monieD <br />borrowed by private buoineoa uocro. (The term "private buoincoEJ une" meano any direct or <br />indirect uoe in a trade or buoineon carried on by an individual or entity other than a <br />state or local governmental unit, including uoe by the Federal Government or any agency <br />thereof. h special exemption io provided for "exempt facility bondo" and SOl (C) (3) "tax <br />exempt organization bondo". <br /> <br />. , <br /> <br />I <br />