1995-020-RES WHEREAS, CITY COUNCIL DID HERETOFORE ON THE 9TH DAY OF JANUARY 1995

Home Browse Search

Page 4 4. TITLE TO EQUIPMENT; SECURITY INTEREST. During the Full Leaoe Term, title to the Equipment ahall remain vented in the LeDDor. Upon exercioe by Leaoee of the purchase option granted in Section 10 of thin Leaoe, LeDGOr ahall deliver to Leoace by appropriate document a title to the Equipment, free and clear of all liens and encumbrances. In the event of a default aD aet forth in Section 12 or nonappropriation a8 aet forth in Section 2 (0), Leoace will Durrendcr pooocDoion of the Eqtlipment to LeDDor aD required by Scction 2(0) and release all claim or right to said Equipment accordingly. To secure the prompt payment and performance aD and when due of all of Lecoce's obligationo hereunder, and all other obligationo of Lcnsee to Leacer, both now in cxiotence and hereafter created, Lennce hereby grantn to LeGGor a first occurity intereot in the Equipment, and all replacements, nubntitutionn and altcrnativeo therefor and thereof and >aeceooiono thereto and all proceed!J (caoh and non-eaoh), including the proceedD of all inourance policion, thereof. LCOGCC agreco that with reopect to the Equipment LeODor ohall have all of the rightG and remedieD of a oe~urcd party under the Uniform Commercial Code a9 in effect in the State. Leogee may not di9poge of any of the Equipment without the prior written conocnt of LeDGOr, notwithotanding the fact that proceedo constitute part of the Equipment. 5. USE AND M1\INTENANCE. LesDee ohall UDC the Equipment in a manner conoiotent with the requirementfJ of all applicable in!>urancc policien,> and will not change the location of any Equipment .1.0 opecified in the Acceptance Certificate without the prior written consent of LesGor, which conoent Ghall not be unrcaGonably withheld. Leoace oha11 not attach the Equipment to any other item of equipment in such a manner that the Equipment may be deemed to have become an acceooion to or a part of ouch other item of equipment. Lesoce, at ita own expenee, will maintain the Equipment in aG good operating condition as when delivered to Len ace hereunder, ordinary wear and tear resulting from proper une thereof alone excepted, and will make all repairo reaoonable neceBoary for ouch purpose. In addition, if any component of the equipment ohall become damaged beyond repair, Leoaee at it9 own expenge, will within a rca90nable time replace ouch component, with replacement components which arc free and clear of all lieno or right of other and have a value and utility at lease equal to the components replaced. All componento which are attached to the Equipment which arc eooential to the operation of the Equipment or which cannot be detached from the Equipment without materially interfering with the operation of the Equipment or adveroely affecting the value and utility which the Equipment would have had without the addition thereof, shall immediately be deemed incorporated in the Equipment and subject to the terms hereof ao if originally leased hereunder, and subject to the aecurity interent of Lcooor in the Equipment. Lessee nhall not make any material alterationo to the Equipment without the prior written con Gent of LeDDor, which conocnt ahall not be unreaoon"ably withheld. Upon reaoonable advancc notice, LeG nor oha11 have the right to inspect the Equipment and all maintenance records with respect thereto, if any, at any reasonable time during normal buaincDo haura. 6. FEES; TAXES; OTHER GOVERNMENTAL AND UTILITY CHARGES. Lessee agrees to indemnify LeSBor against all titling, recordation, documentary otamp and other fecs, arioing at any time prior to or during the Leaoe Term, upon or relating to the Equipment or this Agreement. The partieD contemplate that the Equipment will be uDed for a governmental purpooe of Leooce and that the Equipment will be exempt from all taxeo preeently aooesoed and levied with reopect to pernonal property. In the event that the use, posoeosion or acquioition of the Equipment io found to be oubject to taxation in any form (except for net income taxes of Lessor), LeSDee will pay as they come due all taxes and governmental charges of any kind that may be aooeooed or levied againot the Equipment, as well ao all . utility and other charges incurred in the operation, maintenance and use of the Equipment. I