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<br />MUNICIPAL LEASE AND OPTION AGREEMENT
<br />
<br />LESSOR:: CAPPS RENT A CAR, INCORPORATED
<br />8555 JOHN CARPENTER FREEEWAY
<br />DALLAS, TEXAS 75247
<br />
<br />LESSEE: CITY OF PARIS, TEXAS
<br />PO. BOX 0037
<br />PARIS, TEXAS
<br />
<br />1. THIS LEASE AGREEMENT IS ENTERED INTO BETWEEN CAPPS RENT A CAR INCORPORATED (LESSOR)
<br />AND CITY OF PARIS, TEXAS (LESSEE), A BODY CORPORATE AND POLITIC DULY ORGANIZED AND EXISTlNG
<br />UNDER THE LAWS OF THE STATE OF TEXAS.
<br />
<br />Nichael E. ,!alone IS AUTHORIZED UNDER THE CONSTITUTIION AND LAWS OF THE STATE
<br />OF TEXAS TO ENTER INTO THIS AGREEMENT FOR THE PURPOSES DESCRIBED AND BOTH PARTIES AGREE AS
<br />FOLLOWS:
<br />
<br />LESSEE DESIRES TO LEASE FROM LESSOR, THE VEHICLE OR VEHICLES IN ACCORDANCE WITH THIS AGREEMENT
<br />AND TO HOLD THE VEHICLE OR VEHICLES FOR THE TERM OF THE LEASE.
<br />
<br />2, THIS AGREEMENT SHALL BE IN EFFECT THROUGHOUT THE ENTIRE LEASE TERM. THE LEASE TERM SHALL BE A
<br />PERIOD OF AT LEAST SIX MONTHS NOT TO EXCEED EIGHT MONTHS, UNLESS OTHERWISE MUTUALLY AGREED
<br />UPON BY BOTH LESSOR AND LESSEE.
<br />
<br />23. LESSCR AGREES TO PROVIDE LESSEE OURING THE LEASE TERM WITH QUIET USE AND ENJOYMENT OF THE
<br />EQUIPMENT. LESSEE WILL NOT USE, OPERATE OR MAINTAIN THE VEHICLE(S) IMPROPERLY, CARELESSLY, IN
<br />VIOLATION OF ANY APPLICABLE LAW OR IN ANY MANNER CONTRARY TO THAT CONTEMPLATED BY THIS
<br />AGREEMENT.
<br />
<br />3, LESSOR MAKES NO WARRANTY NOR REPRESENTATION, EITHER EXPRESSED OR IMPLIED, AS TO THE VALUE,
<br />DESIGN, CONDITION, MERCHANTABILITY OR FITNESS FOR PARTiLCULAR PURPOSE OR FITNESS FOR USE OF THE
<br />EQUIPMENT, OR ANY OTHER WARRANTY WITH RESPECT THERETO AND, AS TO THE LESSOR, THE LESSEE
<br />LEASES THE EQUIPMENT "AS IS', IN NO EVENT SHALL THE LESSOR BE LIABLE FOR ANY LOSS OR DAMAGE,
<br />INCLUDING INCIDENTAL, INDIRECT. SPECIAL OR CONSEQUENTIAL DAMAGE, IN CONNECTION WITH OR ARISING
<br />OUT OF THIS AGREEMENT OR THE EXISTENCE, FURNISHING, FUNCTIONING OR THE LESSEE'S USE OF ANY ITEMS
<br />OR PRODUCTS OR SERVICES PROVIDED FOR IN THIS AGREEMENT,
<br />
<br />3b. LESSEE IS ENTITLED TO ANY WARRANTIES THAT LESSCR MAY HAVE AGAINST ANY VENDOR OF ANY PORTION
<br />OF THE LEASED EQUIPMENT.
<br />
<br />3c. LESSEE IS RESPONSIBLE FOR ALL ROUTINE MAINTENANCE, SUCH AS, OIL AND FILTER CHANGES (A T1NTERVALS
<br />NOT TO EXCEED 5,000 MILES BETWEEN CHANGES), TIRE REPAIR OR REPLACEMENT AND ANY MINOR REPAIRS. IN
<br />THE EVENT OF A TIRE REPLACEMENT, LESSCR AGREES TO REPLACE THE TIRE WITH AN IDENTICAL LIKE BRAND
<br />AS WAS ORIGIONALL Y PROVIDED. LESSEE AGREES TO PAY AN ADDITIONAL PREMIUM IN THE EVENT THAT OIL
<br />CHANGES ARE NOT PERFORMED. MINOR REPAIRS IS DEFINED AS THOSE REPAIRS COSTING $50,00 OR LESS
<br />AND NOT COVERED BY FACTORY WARRANTY. ANY REPAIR THAT WOULD BE LESSCRS' RESPONSIBILITY IS TO
<br />BE APPROVED BY LESSOR PRIOR TO REPAIRS BEING PERFORMED.
<br />
<br />3d. ANY REPAIRS OR MAINTENANCE IN EXCESS OF $50.00 AND NOT COVERED BY MANUFACTURER'S WARRANTY AND
<br />DEEMED TO BE THE RESPONSIBILITY OF THE LESSOR, SHALL NOT BE PERFORMED WITHOUT PRIOR APPROVAL
<br />OF LESSOR. NORMAL WEAR AND TEAR IS ACCEPTABLE, ABNORMAL WEAR AND TEAR OR SUBSTANDARD BODY
<br />REPAIRS ARE NOT ACCEPTABLE AND WILL BE CHARGED BACK TO LESSEE. DAMAGED WINDSHIELDS MUST BE
<br />REPLACED (REPAIRED OR "PLUGGED" WINDSHIELDS WILL NOT BE ACCEPTED) AT LESSEE'S EXPENSE, RE.
<br />PLACED WINDSHIELDS ARE TO BE "PPG" OR 'LOF" GLASS. LABOR TO REPAIR HOLES THAT HAVE BEEN DRILLED
<br />IN VEHICLES BY LESSEE WILL BE CHARGED BACK TO LESSEE AT AUTHORIZED NEW CAR DEALERSHIP RATES.
<br />
<br />4. THE OBLIGATION OF THE LESSEE TO PAY RENTAL PAYMENTS HEREUNDER IS A CURRENT EXPENSE OF LESSEE
<br />AND NOT A DEBT OF LESSEE IN CONTRAVENTION OF ANY APPLICABLE LIMITATIONS OR REQUIREMENTS, NOR
<br />SHALL ANYTHING CONTAINED HERIN CONSTITUTE A PLEDGE OF THE GENERAL TAX REVENUES, FUNDS OR
<br />MONIES OF LESSEE.
<br />
<br />4a, THE OBLIGATIONS OF LESSEE TO MAKE RENTAL PAYMENTS, AND TO PERFORM AND OBSERVE THE COVENANTS
<br />AND AGREEMENTS CONTAINED HERIN, SHALL BE ABSCLUTE AND UNCONDITIONAL IN ALL EVENTS, EXCEPT AS
<br />EXPRESSLY PROVIDED UNDER THIS AGREEMENT, NGTWITHSTANDING ANY DISPUTE BETWEEN LESSEE AND
<br />LESSOR, ANY VENDOR OR ANY OTHER PERSON, LESSEE SHALL NOT ASSERT ANY RIGHT OF SET-OFF OR
<br />COUNTERCLAIM AGAINST ITS OBLIGATION TO MAKE PAYMENTS UNDER THIS AGREEMENT.
<br />"
<br />4b. 1.ESSEE AGREES TO DO ALL THINGS LAWFULLY WITHIN ITS POWER TO OBTAIN AND MAINTAIN FUNDS FROM
<br />WHICH THE RENTAL PAYMENTS MAY BE MADE.
<br />
<br />EXHIf::SIT A
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