1995-004-RES WHEREAS, CITY COUNCIL DID AT ITS SPECIAL MEETING ON SEPTEMBER 19 1994

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Page 3 (e) Nonappropriation4 In the event sufficient funds are not appropriated for the payment of the rent required to be paid in the next succeeding Renewal Term, and Lessee has no funds legally available for rent from other sources, then Lessee may terminate this Agreement at the end of the Original Term or the then current Renewal Term, as the case may be, and Lessee ahall not be obligated to mak~ payment of the rent beyond the then current term. Lessee agrees to deliver notice to Leosor of ouch termination at least 60 days prior to the end of the then current term. If this Agreement is terminated under this Dub-part, Lessee agrees, at Lessee's cost and expense, peaceably to delivery the Equipment to Leosor. In addition, Lessee agrees, at Lessee's coat and expense, to incur the necessary cooto and expenseo to bring the returned sweeper and truck chaoois up to factory remarketing otandards. To the extent lawful, Lessee covenants that it will not, until the date on which the next oucceeding Renewal Term would have ended, expend or commit any funds for the purchase or use of equipment to be used for the same purpose as, or a purpooe functionally equivalent to, the Equipment4 Notwithstanding anything in this Agreement to the ,contrary, the,provisions of this SUb-part shall survive termination of this Agreement. 3. REPRESENTATIONS AND COVENANTS OF LESSEE. Lessee represents, covenants and warrants to Lessor as follows: (a) Lessee is an entity described in Section l03{a) of the' Internal Revenue Code of 1986, as amendedi and will do or cause to be done all things necessary to preserve and keep in full force and effect its existence as such an entity. (b) Based upon the representations, covenants and warranties of Lessor, the execution and delivery of this Agreement by Lessee and performance of this obligations hereunder ia not prohibited by the Constitution and laws of the state specified on the Certificate of Acceptance (the "State"), and has been duly authorized by resolution of the governing body of Lessee (a certified copy of which shall be attached to the opinion of Lessee's counsel)i and Lessee has obtained such other approvals as are necessary to consummate this Agreement. All requiremento have been met, and procedures have occurred, necessary to ensure the enforceability of this Agreement against Lessee, and Lessee has complied with such public bidding requirements as may be applicable to this Agreement and the acquisition by Lessee of the Equipment hereunder. (c) Lessee has determined that a present need exists for the Equipment which need is not temporary or expected to diminish in the foreseeable future. The Equipment io essential to and will be used by Lessee onlyl for the purpose of performing one or more governmental functions of Lessee consistent with the permissible scope of Lessee's authority and will not be used in a trade or business of any person or entity. (d) Lessee will annually, upon request, provide Lessor with a letter from the City's accountant stating that funds have been appropriated in the City's annual budget to continue this lease for the next renewal term. (e) The Equipment is, and shall remain, personal property and when subject to use by' Lessee under this Agreement will not be or become fixtures. The Lessee further warrants that this lease will not constitute a "private activity bond" within the meaning of Section 141 of the Internal .Revenue Code in that Lessee will not sublease the Equipment, nor will Lessee enter any management, output, or similar types of contracts where more than 10 percent of the proceeds of the lease purchase agreement will be used for one or more private business uses or where the payment of the principal of, or interest on, more than 10 percent of the proceeds of this Lease will be made, either directly or indirectly by payments, property, or monies borrowed by private business users. (The term "private business use" means any direct or indirect use in a trade or business carried on by an individual or entity other than a state or local governmental unit, including use by the Federal Government or any agency thereof. A special exemption is provided for "exempt facility bonds" and 501 (C) (3) "tax exempt organization bonds".