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BILL NO. 89-126 '
SPONSORED BY COUNCILMAN SCHEULEN ,:
' ORDINANCE NO.
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AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE
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MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS WITH IBM FOR ACQUIRING ' .
A COMPUTER HARDWARE, AND AN OPERATING SYSTEM; FOR A MAINTENANCE
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AGREEMENT AND FOR FINANCING THE ACQUISITIONS ON A LEASE/PURCHASE
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BASIS. };4
BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, rtSj `.•{,
AS FOLLOWS• ?
Section 1. The Mayor and City Clerk are hereby authorized and
directed to execute an agreement with IBM for the computer hardware
and an operating system for an outright purchase amount not to ;r }
1 exceed $350, 000- 00.
Section 2. The Mayor and City Clerk are hereby authorized and
directed to execute an agreement for a maintenance agreement for
the hardware and operating system for one year for a sum not to
exceed $6,500- 00.
Section 3 . The Mayor and City Clerk are hereby authorized and
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directed to execute any and all documents necessary to acquire .
' maintenance agreement
financing for the hardware operating system, i� '
and the New World software from IBM Credit Corporation. M:`"
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Section 4 . The agreement shall be substantially the same inz,l
form and content as these agreements attached hereto.
Section 5. This Ordinance shall be in full force and effect4,.
from and after the date of its passage and approval. p
Passed _
Approved /7�5
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ATTEST:
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A ff; City Clerk `
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I�iMr®dit Corporation
Stamford, CT 06904 '��`
TERM LEASE MASTER AGREEMENT
a STATE AND LOCAL GOVERNMENT
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Name and Address of Lessen: Agreement No.: 4715445j' 1
City of Jefferson City
IBM Branch Office No.: PS5 }
320 East McCarty
Jefferson Cy, Mo. 65101-3198
IBM Branch Office Address: IBM Customer No.: 502614q
One Elm Plaza
Jefferson City, Mo. 65101
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The lessor pursuant to this Term Lease Master Agreement(Agreement)will be(a)IBM Credit Corporation,or a subsidiary or affiliate thereof,
or (b) a related business enterprise for whom IBM Credit Corporation is the agent (Lessor). The subject matter of the lease shall be
machines,field installable upgrades,feature additions or accessories marketed by International Business Machines Corporation(IBM)and
shall be referred to as Equipment.Any lease transaction requested by Lessee and accepted by Lessor shall be specified in a Term Lease
Supplement (Supplement). A Supplement shall refer to and incorporate by reference this Agreement and,when signed by the parties, {
shall constitute the lease for the individual items contained therein (Lease)for the Equipment specified therein.A Supplement may also
specify additional details and terms and conditions as well as other amounts to be financed(Financing). Financing may Include charges
for licensed program material charges(LPM Charges)for licensed programs marketed by IBM under the agreement specified in the Supple-
ment as Referenced License Agreement No.(License Agreement).
1. Lease Options. The Supplement shall designate the option. 5. Assignment to Lessor. Lessee hereby assigns, exclusively
For Equipment,Option G is a Lease with Purchase Option and Op- to Lessor,Lessee's right to purchase the Equipment from IBM.This
tion G Prime(G') is a Lease to Purchase. For LPM Charges,Op- assignment is effective when Lessor accepts the applicable Sup- art..`;;.';
tion S or Option S Prime(S')will apply.For other Financing,Option plement and Lessor shall then be obligated to purchase and pay .q
T or Option T Prime(T')will apply. for the Equipment. Other than the obligation to pay the purchase
Prime Options, such as G Prime,S Prime,and T Prime, are re- price, all responsibilities and limitations applicable to Customer in
served for Lessees who are state and local governments or politi- the IBM purchase agreement specified in the Supplement as Refer-
cal subdivisions thereof as defined under Section 103 of the Inter- enced Purchase Agreement No. (Purchase Agreement) shall re-
nal Revenue Code of 1986, as amended, including all Internal main with Lessee.
Revenue Service regulations and rulings under this section. If the Equipment is subject to a volume procurement or educa- ?<
2. Agreement Term. This Agreement shall be effective when tional allowance amendment to the Purchase Agreement or to
signed by both parties and may be terminated by either party upon another discount offering, (a)Lessor will pay the same amount for
one month's written notice. However, each Lease then In effect the Equipment that would have been payable by Lessee, and
shall survive any termination of this Agreement. (b) Lessee will remain responsible to IBM for any other charges
3. Changes. Lessor may only change the terms and conditions incurred under the discount offering. ,:,�•:
of this Agreement by providing prior written notice.Any change will 6. Full Term Intention;Appropriation of Funds, Lessee intends 4,-
apply only to Leases with an Estimated Shipment Date,or Effec- to pay Rent for the full Lease Term and, if required,to request ap-
tive Date for Additional License, on or after the effective date propriation of funds for the Lease. Nevertheless, Lessee will not
specified in the notice. However, such change shall not apply to be in default for nonpayment as long as(a)the funds for the Lease
Leases,signed by Lessee and received by Lessor on or before the require appropriation by a legislative or other elected authority of 1bj i`j:'q
date of the notice,which have an Estimated Shipment Date,or Ef- a state or local government or a political subdivision thereof, (b
fectivd Date for Additional License,three months or less after the Lessee has duly requested appropriation of funds for Rent,and(c; }lT j,ti
date of notice. If such change does apply, Lessee may terminate such funds for the Equipment (or In the case of any Financing,
the Lease for an affected item by providing notice to Lessor within funds for both the Financing and for the Equipment related to the
15 days after receipt of Lessor's notice and prior to delivery,or E% Financing)or comparable equipment are not appropriated for any 7 Wit
fective Date for Additional License,of the affected item. fiscal year during the Lease Term.If a nonappropriation of this kind .,:n: .•:.;•
4. Selection and Use of Equipment, Programming and occurs, Lessee will promptly notify Lessor,and the Lease for the
Licensed Program Materials. Lessee agrees that it shall be re- Equipment and Financing Involved will terminate at the end of the
sponsible for the selection, use of, and results obtained from,the last fiscal year for which funds were appropriated. Other than for
Equipment, an ro programming supplied b IBM without additional a nonappropriation of this kind the Lease may not be cancelled ��;Spt .?,•.:
Y P 9 9 PP Y
charge for use on the Equipment (programming), licensed pro- during its Term, and the obligation of Lessee to pay the Rent for
gram materials,and any other associated equipment,programs or the Term of the Lease shall be absolute and not subject to an "qtr
1 Y re-
services. duction for any reason whatsoever. If the Equipment, program-
•'•' `�ruY.Y
THE ADDITIONAL TERMS AND CONDITIONS ON PAGES 2THROUGH 4 ARE PART OF THIS AGREEMENT.
LESSEE ACKNOWLEDGES THAT LESSEE 14AS READ THIS AGREEMENT AND ITS SUPPLEMENT,UNDERSTANDS THEM,AND AGREES TO BE R i
BOUND BY THEIR TERMS AND CONDITIONS. FURTHER LESSEE AGREES THAT THIS AGREEMENT AND ITS SUPPLEMENT ARE THE COM-
PLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES,SUPERSEDING ALL PROPOSALS OR PRIOR AGREE-
MENTS,
ORAL OR WRITTEN,AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF.
f.
Accepted by: {,
IBM Credit Corporation
City of Jefferson City
--- ----------•---•----------•---.....---.......--- ------•---•--------•-•-----•-......................
;• ( Lessee
t'} Authoriz66*§i neture' Arj, , T rued igri ure ,
:. R.E. Hindman 11-16-89 2 • roc
........................................................................ . _... ,lid. . ., f'.......c............................ ........�...a1r.c :.L.u..�. 1
Name(Type or Print) Date T .........or int) Dale
I��1�14Y�'$ 1Pr. Cirtin, Cit1 Clerk
' Z125.3420.03 U/M 001 3189 Rai.109 Page 1 of 4
LESSOR'S ORIGINAL
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113M t
113M Credit Corporation Stamford, CT 08904
TERM LEASE MASTER AGREEMENT
STATE AND LOCAL GOVERNMENT
I-Tl
Name and Address of Lessen; Agreement No.: 4715445x' r
' City of Jefferson City IBM Branch Office No.: PS5
320 East McCarty
Jefferson Cy, Mo. 65101-3198 IBM Customer No.: 502614(r"IBM Branch Office Address:
One Elm Plaza
Jefferson City, Mo. 65101
,
The lessor pursuant to this Term Lease Master Agreement(Agreement)will be(a)IBM Credit Corporation,ora subsidiary or affiliate thereof,
or (b) a related business enterprise for whom IBM Credit Corporation is the agent (Lessor). The subject matter of the lease shall be
machines,field installable upgrades,feature additions or accessories marketed by International Business Machines Corporation(IBM)and
shall be referred to as Equipment.Any lease transaction requested by Lessee and accepted by Lessor shall be specified in a Term Lease
Supplement (Supplement). A Supplement shall refer to and incorporate by reference this Agreement and, when signed by the parties,
shall constitute the lease for the individual items contained therein (Lease)for the Equipment specified therein.A Supplement may also
specify additional details and terms and conditions as well as other amounts to be financed(Financing). Financing may include charges
for licensed program material charges(LPM Charges)for licensed programs marketed by IBM under the agreement specified in the Supple-
ment as Referenced License Agreement No.(License Agreement).
1. Lease Options. The Supplement shall designate the option. 5. Assignment to Lessor. Lessee hereby assigns, exclusively
For Equipment,Option G is a Lease with Purchase Option and Op- to Lessor,Lessee's right to purchase the Equipment from IBM.This
tion G Prime(G')is a Lease to Purchase. For LPM Charges,Op- assignment is effective when Lessor accepts the applicable Sup-
tion S or Option S Prime(S')will apply.For other Financing,Option plement and Lessor shall then be obligated to purchase and pay
willapply. for the Equipment. Other than the obligation to pay the purchase
TorOptionTPrime(T')
Prime Options,such wi G Prime,S Prime,and T Prime,are re- price, all responsibilities and limitations applicable to Customer in
served for Lessees who are state and local governments or politi- the IBM purchase agreement specified in the Supplement as Refer-
cal subdivisions thereof as defined under Section 103 of the Inter- enced Purchase Agreement No. (Purchase Agreement) shall re-
nal Revenue Code of 1986, as amended, including all Internal main with Lessee. ,'' ;•..
Revenue Service regulations and rulings under this section. If the Equipment is subject to a volume procurement or educa-
2. Agreement Term. This Agreement shall be effective when tional allowance amendment to the Purchase Agreement or to
signad by both parties and may be terminated by either party upon another discount offering, (a)Lessor will pay the same amount for
one month's written notice. However, each Lease then in effect the Equipment that would have been payable by Lessee, and
shall survive any termination of this Agreement. (b) Lessee will remain responsible to IBM for any other charges :`ta, f 5.
3. Changes. Lessor may only change the terms and conditions incurred underthe discount offering.
of this Agreement by providing prior written notice.Any change will 6. Full Term Intention;Appropriation of Funds. Lessee intends
apply only to Leases with an Estimated Shipment Date, or F_ffec- to pay Rent for the full Lease Term and, if required,to request ap-
five Date for Additional License, on or after the effective date propriation of funds for the Lease. Nevertheless, Lessee will not <r:
specified in the notice. However, such change shall not apply to be in default for nonpayment as long as(a)the funds for the Lease sN:;
Leases,signed by Lessee and received by Lessor on or before the require appropriation by a legislative or other elected authority of s `
date of the notice,which have an Estimated Shipment Date,or Ef- a state or local government or political subdivision thereof, (b)
fective Date for Additional License,three months or less after the Lessee has duly requested appropriation of funds for Rent,and(c
date of notice. If such change does apply, Lessee may terminate such funds for the Equipment (or in the case of any Financing,
vt
the Lease for an affected item by providing notice to Lessor within funds for both the Financing and for the Equipment related to the
15 days after receipt of Lessor's notice and prior to delivery,or EP- Financing)or comparable equipment are not appropriated for an
fective Date for Additional License,of the affected item. fiscal year during the Lease Term.If a nonappro nation of this kind
4. Selection and Use of Equipment, Programming and occurs, Lessee will promptly notify Lessor, an the Lease for the ;; ffl "
Licensed Program Materials. Lessee agrees that it shall be re- Equipment and Financing involved will terminate at the end of the <ryb`4"1
sponsible for the selection, use of, and results obtained from,the last fiscal year for which funds were appropriated.Other than fort,�;s4t ;:...
Equipment, any programming supplied by IBM without additional a nonappropriation of this kind, the Lease may not b6 cancelled
charge for use on the Equipment (programming), licensed pro- during Ilts Term, and the obligation of Lessee to pay the Rent for
gram materials,and any other associated equipment,programs or the Term of the Lease shall be absolute and not subfect to any re-
duction for any reason whatsoever. If the Equipment, program-
services.
3;fcs YS1 i.
THE ADDITIONAL TERMS AND CONDITIONS ON PAGES 2 THROUGH 4 ARE PART OF THIS AGREEMENT. B...'. .
..n .,
LESSEE ACKNOWLEDGES THAT LESSEE HAS READ THIS AGREEMENT AND ITS SUPPLEMENT,UNDERSTANDS THEM,AND AGREES TO BE
}' SUPPLEMENT ARE COM- fri .
BOUND BY THEIR TERMS AND CONDITIONS.FURTHER,LESSEE AGREES THAT THIS AGREEMENT AND ITS SUPPLEI'. �j
PLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES,SUPERSEDING ALL PROPOSALS OR PRIOR AGREE- as5uk ,
MENTS,ORAL OR WRITTEN,AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF.
Accepted by: r. •
IBM Credit Corporation
City of Jefferson City
...................................................... ..Lessee......................._...................._......_
7G�*,".--�'...................................... BY ;.w.
By_....... ...._. ri i n ure
Authorized Signature �2"�' T• �g ° ,._.. _.�.. ... .._. S:;y'x, •.
R.E. Hindman 11-16-89 /
................................................................... ...-... .F•J :'.: _'::.`.-.!.___..._......_.:�....vT........l...Q :^: .�:'�[ 'tr`'• •
......................................... Dale
._ ) f..
Name(Type or Print) Date
1�IeCn�lrlrp$or�rl�t C,irti.n, City Clerk Y:''±•.
tSi' IIQd
2125.3428-03 (U1M00,) 3198 Rai.109 Page 1 of 'r
t LESSOR'S ORIGINAL
y ..( 1sNYi� .0,' i 1•a y a,..- .e^^� h.,.. .„�Fs^ "Pf 1,: �.'c,,.. ..,�. ..y� ri`'�:2 �'s 1'T � C'SC'1 r:
"'.•3°rra' ):i�3Kt4bTti .'R,ri[[ +:+�,+..o-fir a +�* i'�ls'd',/:,,,, ry' 1' ' .�'�''�t '�t`
'1 1 F'� ^,t%`1"I'. t .0.'i, t`,1,1.o7!}tY+'��?�;!�l 1 k �
.1.�����
� , .�, .�. 7 . •. .. �. t N• t+�} 2 Q:j 1�,tl:: t, N f'.., 1 l i�t...
','✓ S % �� ,^` A i `' .. � , :' , q a a, �� yfJr st , ;"�t+$rrf 54
1
1
ming or licensed program materials are unsatisfactory for any offer renewal Terms of one year and may offer longer Terms if then .
reason, Lessee shall make any claim solely against the supplier generally available.For a renewal Term,upon request by Lessee,
and shall,nevertheless,pay Lessor all amounts payable under the at least five months prior to.Lease expiration, Lessor shall notify
Lease. Lessee,at least.four months prior to Lease expiration,of the Rent;
7. Warranties. Lessor grants to Lessee the benefit of any and any changes to the Payment Period and due.dates,and of any re-
s� gall warranties made available by IBM in the Purchase Agreement. quired Purchase Option or Renewal Option Percents not specified
Lessor warrants that neither Lessor nor anyone acting or claiming in the Supplement, The Rent shall be objectively determined by
ent or otherwise,will interfere with Les- Lessor by using the projected fair market rental value of the Equip-
through Lessor,by assignm
tee's quiet enjoyment of the use of the Equipment so long as no ment as of the commencement of such renewal Term.Lessee may
event of default shall have occurred and be continuing. EXCEPT renew for any renewal Term only by so notifying Lessor in writing
FOR LESSOR'S WARRANTY OF QUIET ENJOYMENT, LES- at least three months prior to Lease expiration.
SOR MAKES NO WARRANTY,EXPRESS OR IMPLIED,AS TO 16. Optional Ex tension. If Lessee has not elected to renew or
ANY MATTER WHATSOEVER, INCLUDING, BUT NOT LIM- purchase,and as long as Lessee is not in default under the Lease, I
ITED TO, THE IMPLIED WARRANTIES OF MERCHANTABIL- the Lease (other than Leases that expire five years from Date of
ITY OR FITNESS FOR A PARTICULAR PURPOSE.AS TO LES-
TAKE Installation)will be extended unless Lessee notifies Lessor inwrit- .;.
SOR. LESSEE LEASES THE EQUIPMENT AND S ANY ing,not less than three months prior to Lease expiration,that Les-
PROGRAMMING "AS IS." IN NO EVENT SHALL LESSOR see does not want the extension.The extension will be under the
HAVE ANY LIABILITY FOR, NOR SHALL LESSEE HAVE ANY same terms and conditions then in effect, including Rent (but not
REMEDY AGAINST LESSOR FOR, CONSEQUENTIAL DAM- less than fair market rental value)and will continue until the earlier ;'',:. : ''•
AGES,ANY LOSS OF SAVINGS OR LOSS OF USE. of termination by either party upon three months' prior written
8. Lessee Authorization. So long as Lessee is not in default notice orfive years from the Date of Installation.
junder the Lease, Lessee is authorized to act on Lessor's behalf 17. Title Transfer at Expiration of Option G Prime Lease. Follow-
concerning any IBM warranty service for the Equipment, and any ing the payment of all amounts due or to become due under the
1 programming services for the programming. Lease and the additional payment of $1.00 and if Lessee is not
9. Delivery and Installation.Lessee shall arrange with IBM for the then in default under the lease, upon the expiration of the Lease
delivery of the Equipment and programming and for installation of for Equipment under Option G Prime,Lessor shall transfer to Les-
' the Equipment at the Equipment Location. Lessee shall pay any see without recourse or warranty of any kind, express or implied, .,
delivery and installation charges.Lessor shall not be liable to Les- all of Lessor's right,title and interest in and to such Equipment on f
see for any delay in,or failure of,delivery of the Equipment or pro- an"As Is,Where Is"basis except that Lessor shall warrant title free
gramming. Lessee shall examine the Equipment and program- and clear of all encumbrances arising through Lessor.
ming immediately upon delivery. If the Equipment is not in good 18. Purchase of Equipment. For Option G, if Lessee is not then
condition or the Equipment or programming does not correspond in default under the Lease, Lessee may, upon three months prior
7 to IBM's specifications,Lessee shall promptly give IBM written notice written notice to Lessor, purchase Equipment upon expiration of
and shall provide IBM reasonable assistance to cure the defect or the lease. The purchase price shall be objectively determined by
discrepancy. Lessor by using the projected fair market sales value of the Equip-
10. Late Delivery. If the Equipment or licensed program mate- ment as of such expiration date.
rials are not delivered to the Equipment Location on or before the For Option G Prime, if Lessee is not then in default under the t
15th day after the Estimated Shipment Date, Lessor may, upon Lease, Lessee may, upon notice to Lessor,purchase Equipment
written notice to Lessee prior to delivery,increase the Lease Rate. at any time during the Lease Term.Such notice shall be given not
f Lessee may terminate the Lease for the affected item upon written later than three months prior to Lease expiration and shall specify
j notice to Lessor prior to delivery.Otherwise,the Rent shall be ad- the desired date of purchase, which shall be one month or more
jutted to reflect such increase. after the date of notice.If the date of purchase is prior to the second
11. Rent Commencement Date. The Rent Ccmmencement anniversary of the Rent Commencement Date,the purchase price ;?`::
Date, unless otherwise specified in the Supplement, shall be the shall be calculated by multiplying the Unit Purchase Price specified
date payment is due IBM under the applicable Purchase Agreement in the Supplement by the Purchase Option Percent for the second
or License Agreement. Lessee shall be notified of the Rent Com- anniverary and adding all Rent that would be due through such an-
mencement Date and the serial numbers of the Equipment. niverary date.If the date of purchase is the second or a subsequent
t .
12. Lease Term. The Lease shall be effective when signed by anniversary of the Rent Commencement Date,the purchase pricej'
both parties.The initial Term of the Lease shall expire at the end shall be an amount determined by multiplying the Unit Purchase
of the number of Payment Periods,specified as"Term"in the Sup- price by the Purchase Option Percent for such Equipment for such
plement, after the Rent Commencement Date. However, obliga- anniversary.
tions under the Lease shall continue until they have been per- If the date of purchase is between two such anniversaries,the „ , xzs•,r, '
formed in full. purchase price shall be the prorated price(in 12 monthly steps)be-
13. Rate Protection. Unless modified pursuant to Paragraph 10, tween the purchase prices described above for such anniver-
.
the Rent shall be based on the Lease Rate specified in the Supple- saries. �`,:.5
ment or such greater Lease Rate as may be specified by written If Lessee purchases any Equipment, Lessee shall,on or before ; t
notice to Lessee more than three months before the Estimated the date of purchase, pay to Lessor the purchase price,any appli-
Shipment Date or Effective Date for Additional License. By notice cable taxes,all Rent due through the day preceding the date of pur-
roc.
to Lessor in writing prior to delivery,or Effective Date for Additional chase,any other amounts due,and the prepayment of any Fin anc-
License, and within 15 days after receipt of such notice, Lessee ing(Paragraph 32).Lessor shall upon the later of payment or date `S! '•yea°tip*
may terminate the Lease for the affected item.Otherwise,the Rent of purchase,transfer to lessee by bill of sale, without recourse or t4;.>} tit
shall be adjusted to reflect the increase.The Unit Purchase Price warranty of any kind, express or implied, all of Lessor's right,title
and LPM Charges are subject to change in accordance with the and intrest in and to such Equipment on an"As In,Where Is"basis ]r4y?irs
applicable Purchase Agreement or License Agreement. except that Lessor shall warrant title free and clear of all encumbr- !•.!41".t iYz;
14. Rent. During the Initial Term,.Lessee shall pay Lessor, for ances arising through Lessor. r} 1
j each Payment Period, Rent as determined in Paragraph 13.Les- 19. Inspection; Marking; Financing Statement. Upon request,
see's obligation to pay shall begin on the Rent Commencement Lessee shall make the Equipment and-its maintenance records
Date. Rent will be invoiced in advance as of the first day of each available for inspection by Lessor during Lessee's normal busi- ?'sk
Pa ment Period and will be due on the day following the last day ness hours,Lessee shall affix to the Equipment an labels indicat-
y Y 9 Y Y �,,•,.' f.
of the Payment Period. When the Rent Commencement Date is ing ownership supplied by Lessor. Lessee shall execute and de-
not on the first day of a calendar month and/or when the initial Term liver to Lessor for filing any Uniform Commercial Code financingrt .
does not expire on the last day of a calendar month,the applicable statements or similar documents Lessor may reasonably request.
P Y PP
Rent will be prorated on the basis of 30-day months. 20. Equipment Use. Lessee agrees that Equipment will be oper-
15. Renewal. If Lessee is not then in default under the Lease, ated by competent,qualified personnel, iii accordance with appli-
Lessee may renew the Lease one or more times but, for Option cable operating instructions,laws and government regulations. ';,
G, the Lease may not continue beyond five ears from the Date 21. Maintenance. Lessee, at its expense, shall keep the Equip-
of
Installation as defined in the Purchase Agreement.Lessor shall ment in a suitable environment as specified by IBM and in good con-
Page 2 of 4
»—+.'+^W!-.S+Wi-".WrNM"'"'"""" F 7 r r 1- 1 d��`'• �i+�"r'b!�7 wS•
t���-t���
1 r } 1 9 y y�,y1� Ti�t�•
{" fil
It• � N / `3 ,.11t j 7r3:,?tit���jggtn�gr��"�'N5,'r
.� rq 7,l s i'�4 ay,�k�t,r•
I .4 ,
_.. -•`r.. ..,.... ... w1.N«-.+.i saw.,,...�........m.�.«_._.......yMN9tfv'
dition anfi working order,ordinary wear and tear excepted. lieve Lessee of its obligations under the Lease. In no event shall
22 AIrerations;Modifications;Pa/�s. Lessee may alter or modify Lessee remove the Equipment from the United States. Lessee
the Equipment only upon written notice to Lesser.Any non-IBM alt- shall not assign, transfer or otherwise dispose of the Lease or
eration is to be removed and the Equipment restored to its normal, Equipment,or any interest therein,or create or suffer any levy,lien
unaltered condition at Lessee's expense prior to its return to Les- or encumbrance thereon except those created by Lessor.
sor. At Lessee's option, any IBM field installable upgrade, feature 31. Financing of LPM Charges. If the Lease provides for financ-
r addition or accessory added to any item of Equipment (Modifica ing of LPM Charges, Lessor will pay such Charges directly to IBM.
i tion)may be removed. If removed,the Equipment Is to be restored Any other charges due IBM ur"der the License Agreement shall be
at Lessee's expense to Its normal, unmodified condition. If not re paid directly to iBM by Lessee. If Lessee discontinues any of the
moved,such Modification shall,upon return of the Equipment,be Icensed program materials in accordance with the forms of the
come, without charge, the property of Lessor free of all encumbr- License Agreement prior to the date LPM Charges are due,the fi-
ances. Restoration will include replacement of any parts removed nancing of affected LPh1 Charges shall be cancelled; otherwise,
In connection with the installation of an alteration or Modification. Lessee's obligation to pay Rent shall not be affected by any dis- s
Any part installed in connection with warranty or maintenance ser- continuance, return or destruction of any license or licensed pro-
vice shall be the property of Lessor. gram materials under the License Agreement.
23. Leases for Modifications and Additions. Upon Lessee's re- 32, Financing Prepayment(does not apply for items of Equip-
quest, Lessor will arrange for leasing of Modifications and Addi- ment). Lessee may terminate any item of Financing (but not an
tions under terms and conditions then generally in effect.Additions Item of Equipment) by prepaying its remaining Rent.Lessee shall
shall be machines, or LPM Charges for licensed program mate- provide Lessor with notice of the intended prepayment date which
rials, which are associated with the Equipment. These Modifica- shall beat least one month after the date of the notice.Lessor may,
tions and Additions must be ordered by Lessee from IBM.Any lease depending on market conditions at the time, reduce the remaining
for Modifications to Equipment shall, and any lease for Additions Rent to reflect such prepayment and shall advise Lessee of the
may,expire at the same time as the Lease for the Equipment.The balance to be paid. If,prior to Lease expiration,Lessee purchases
rent shall be determined by Lessor and specified in a Supplement. the Equipment related to the Financing or if the Lease for such
If Lessee purchases Equipment prior to Lease expiration,Lessee Equipment is terminated,for any reason except if funds are not ap-
shall simultaneously purchase any Modifications under Lease. propriated as described in Paragraph 6, Lessee shall at the same
24, Return of Equipment. Upon expiration or termination of the time prepay such Financing.
Lease for any item of Equipment,or upon demand by Lessor pur- 33. Default; No Waiver. Lessee shall be in default under the
suant to Paragraph 34, Lessee shall promptly return the Equip- Lease upon the occurrence of any of the following events:(a)Les-
ment,freight prepaid,to a location in the continental United States see fails to pay when due any amount required to be paid by Les-
specified by Lessor. Except for Casualty Loss, Lessee shall pay see under the Lease and such failure shall continue for a period
any costs and expenses incurred by Lessor to inspect and qualify of seven days after the due date; (b) Lessee fails to perform any
the Equipment for IBM's maintenance agreement service.Any parts other provisions under the Lease or Lessee fails to perform any of
removed in connection therewith shall become Lessor's property. its obligations under any other Lease entered into pursuant to this
25. Casualty Insurance;Loss or Damage. Lessor will maintain, Agreement,and such failure or breach shall continue unremedied
at its own expense, insurance covering loss of or damage to the for a period of 15 days after written notice is received by Lessee
Equipment(but excluding any Modifications not subject to a Lease from Lessor;(c)Lessee violates any of the covenants or represen-
and any non-IBM alterations).If any item of Equipment shall be lost, tations made by Lessee to Lessor with respect to any Lease en-
stolen, destroyed or irreparably damaged for any cause what- tered into pursuant to this Agreement or in any agreement with IBM
soever(Casualty Loss) before the Date of Installation,the Lease with respect to the Equipment or licensed program materials or
for that item shall terminate.If any item of Equipment suffers Casu- fails to perform any provision in any such agreement(except the
ally Loss, or shall be otherwise damaged, on or after the Date of obligation to pay the purchase price or LPM Charges).
Installation, Lessee shall promptly inform Lessor. If Lessor deter- Any failure of Lessor to require strict performance by Lessee or
mines that the item can be economically repaired, Lessee shall any waiver by Lessor of any provision in the Lease shall not be con-
place the item in good condition and working order and Lessor will strued as a consent or waiver of any other breach of the same or
reimburse Lessee the reasonable cost of such repair. If not so re- of any other provision.
pairable,the Lease for that item shall terminate. 34. Remedies. If Lessee is in default under the Lease, Lessor
26. Taxes.All taxes on or measured by the net income of Lessor, shall have the right, in its sole discretion, to exercise an one or
an taxes resulting from the Purchase Agreement,and an y
Y 9 g y prop- more of the following remedies in order to protect its interests,
erty taxes shall be for the account of Lessor.All other taxes of any reasonably expected profits and economic benefits. Lessor may
description attendant to transactions under the Lease shall be for (a)declare any Lease entered into pursuant to this Agreement to ;fit;€;M1y}?a,,:•
the account of Lessee, either by reimbursement of Lessor, or, at be in default; (b) terminate in whole or in part any Lease; (c) re-
Lessor's request,directly paid by Lessee to the taxing authority. cover from Lessee to the extent permitted by law any and all
27. Lessor's Payment. If Lessee fails to perform its obligations amounts then due and to become due; d take possession of an
under Paragraph 26 or 29 or to discharge any encumbrances or all items of Equipment, wherever located, without demand or s,=
created by Lessee,Lessor shall have the right to substitute perfor- notice,without any court order or other process of law;and(e)de- <�•h •->';"..
mance,in which case,Lessee shall pay Lessor the cost thereof. mend that Lessee return any or all such items of Equipment to Les-
�ikl
28. Net Lease. The Lease shall be strictly a net lease. Con- sor in accordance with Paragraph 24 and,for each day that Lessee
sequently, unless specifically provided otherwise in the Lease, shall fail to return any items of Equipment,Lessor may demand an
claims,costs and expenses of any description connected with the amount equal to the Rent,prorated on the basis of a 30-day month ;°;t .;J%'4"'!•
i r
Lease shall be for the sole account of Lessee,except that Lessor in effect immediately prior to such default. Upon repossession or
shall bear responsibility,to the extent of its fault,for claims for per- return of such item or items of Equipment, Lessor shall sell, lease
sonal injury or real and tangible personal property damage caused or otherwise dispose of such item or items in a commercially
by Lessor's negligence. reasonable manner,with or without notice and on public or private ;';i.;,ti>`` 3r�fa,
29. Liability Insurance. Lessee shall obtain and maintain com- bid, and apply the net proceeds thereof towards the amounts duee•;: ;
prehensive general liability insurance,in an amount of$1,000,000 under the Lease but only after deducting,
g ' y g (i) in the case of sale,
rJ•..-pi. y :...
or more for each occurrence, with an insurer having a Bests the estimated fair market value of such item or items as of the
Polic holders' rating of B+ or better.The policy shall name Les- scheduled expiration of the Lease,or Ii in the case of an re lace-
y � $ P Y P (�) Y P t;.4,tj��rr�•�- .,
sor as an additional Insured as Lessor's interests may appear and ment lease,the rent due for any period beyond the scheduled expi-
shall contain a clause requiring the insurer to give Lessor at least ration of the Lease for such item or Items;and(iii)in either case,
one month's prior written notice of the cancellation,or any alters- all expenses, including legal fees, incurred in connection there-
tion in the terms,of the policy.Lessee shall furnish to Lessor,upon with.Any excess net proceeds are to be retained by Lessor.Lessor
IN
request,evidence that such insurance coverage is in effect. may pursue any other remedy available at law or In equity,includ-
30. Sublease and Relocation of Equipment;No Assignment by ing,but not limited to,seeking damages,specific performance and }°ry�'t
Lessee. Upon Lessor's prior written consent,which will not be un- an Injunction. j�7,;.Y,�N�<�;.`
treasonably withheld,Lessee may sublet the Equipment or relocate No right or remedy is exclusive of any other provided herein or Yr','•si c
it from the Equipment Location.No sublease or relocation shall re- permitted by law or equity. All such rights and remedies shall ba
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Page 3 of 4 ;
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LESSOR'S ORIGINAL
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Para
graph 5—add at the end of the first paragraph,"Assi"Assignment
cumulative and may be enforced concurrently or individually from livery' and"Date of Installation' by Effective Date of Purchase";
time to time. g .p g
35. Ownership;Persona/Property;Licensed Program Materials. of the option to purchase installed Equipment at the net purchase
perty of Lessor. option price under an IBM lease or rental agreement will be permit-
The Equipment under Lease is and shall be the pro
Lessee shall have no right, title or interest therein except as set ted only when Lessee submits the Supplement in sufficient time
!ZN orth in the Lease.The Equipment is,end shall at all times be and to achieve the Intended Effective Date of Purchase.The Effective
remain,personal property and shall not become a fixture or realty. Date of Purchase under this assignment shall be the later o the
Licensed program materials are licensed and provided by IBM di- first day of the Quotation Month or the day on which the Supple-
rectly to Lessee under the terms and conditions of the License merit is accepted by Lessor, If the Quotation Month expires and
Agreement. the purchase of Equipment Is not concluded this assignment and
36. Notices; Administration. Service of all notices under the Lease will be null and void regarding any such Equipment and all
Lease shall be sufficient if delivered personally or mailed to Lessee rights, duties and obligations of Lessee and IBM will remain in ac-
at Its address specified in the Supplement or to Lessor in care of cordance with the provisions of the IBM agreement under which the
`} the IBM Branch Officespecified in the Supplement.Notice b mail E ui ment is current) installed.";
shall be effective when deposited in the United States mail, duly Paragraphs 9 and 10—delete both paragraphs;and
addressed and with postage prepaid. Notices, consents and ap Paragraph 13 — replace entire paragraph with the following:
4 'ovals from or by Lessor shall be given by Lessor or on its behalf "The Rent shall be based on the Lease Rate specified in the Sup- ,
p 4! y
by IBM and all payments shall be made to IBM until Lessor shall notify plement or such greater Lease Rate as may be specified by written �` �',�c"„
Lessee otherwise. notice to Lessee more than three months before the Effective Date
37. Revisions for Previously Installed Equipment.Equipment in of Purchase. The Unit Purchase Price is subject to change in ac- <svt.ati;_I4
stalled with Lessee under an IBM lease or rental agreement may cordance with the referenced Purchase Agreement. Lessee may
be purchased by Lessor,on the Effective Date of Purchase(as de- terminate the Lease for any item subject to an increase by giving
fined in the Purchase Agreement),for lease to Lessee under Op- Lessor written notice on or before the Effective Date of Purchase.' 1s3,
tion G or G Prime.For such Equipment,the Lease shall be revised 38. Applicable Law;Severability.Lessee's state laws shall gov-
y asfollows: ern the Lease. If any provision of the Lease shall be held to be in-
Paragraphs 3, 15, 16 and 25 — replace "Estimated Shipment valid or unenforceable, the validity and enforceability of the re-
Date"by"Intended Effective Date of Purchase"and replace"de- maining provisions shall not in any way be affected or impaired.
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Page 4 of 4
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