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<br />Equipment Lease-Purchase Agreement
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<br />FOR fAX-EXEUF'r STATE OR
<br />LOCAL GO\l!'RNldENTAl
<br />1RANSACTIONS ONU'
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<br />lease Number' lBaH'S FfNj Tax )D:I;
<br />LIil5~t'! ICQ~(Dm.r) - Ulie EXACT legal 1141rttC Lessee's C h iet EKe'll IAtive Offi C8 - Street City
<br />CITY OF SAN MARCOS 630 E HDPKiNS SAN MARCOS
<br />SllIle I CalAnty I Zip I LElS'S&8'S Telephone (",alG8111
<br />TX 78666 (512) 393 - 8000
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<br />In thig ag~em'?nt. as illll3Y be amended from time ID time (t~e "LeaSe"), 1I1e words "YI;II.I" and "YDur" maan lhe I~ssee named allove "We,~ "U8" llnd "Our~ n'lcan lhe lessor,
<br />Wel18 Fal'9l1 Pln...nciaILe~&irr!J, Inc, "SOller" lI'oellnS ~e equipmenl Y!lIer(s) named In the Schedule. Th/~ Lease and UTe othlN documlNlts .xecufcll" alldlor delf..,.red by Us
<br />in ~ollll..:tiOrllNltll this Lease ",pI\!serrt the linal itnd 0111)' agreement ber-ell You and Us reg<lrrlil1g U1. SUllJecr rrNlIfter hereIn Bnd supersede an]! of!?'" Ol1Jl or wI'{fl'e"
<br />agreeml!llu .berMOIl You /111ft u.. Thl~ leas. can Da clNtl~t1 on/)' by II wnCWn agrH'ml'nt bllfWlltlln Yoll and Us. OUter .~ment.5 mlllit"~d ha~1l (lnc'uamg,
<br />witham limitation, trros. CCln!llll1ell" In any purchase a!lTe"mml between y'ou alld me SellwJ arI! nDt bifJding Oil tJI".
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<br />1, LeASE O~UlPMENT You agree to lease from Us the personal ploperly (Illge\tloer \IIilh all existin~ and ru1ura accaMories. a1!acl1.mel"lts, repleCI:men1S and en'lbfld'ded
<br />so1lw3re, tile ~EqU.llment"} 11.1e;l an lh~ allachoOd !:!quipmeht Schedule (he~inaftar re1eHIld to as the "Sche<l\lle"} uplln the lerms slalad harein. T~ ~nn of Ihi!l Lea5e &hall
<br />commence 0(", 3n<l Interest 5h8:IIIQ;rue from. the date ic!1!lnlltled on the Sche;lule (the ~CgmmenClllft.nt Dalo") and shell continue for lne number 01 lT1on1ns 5tl.1ed in the
<br />Schedllle (~he ~Sc;hedulEtd Tllnn") l:nles.s You shElll hll'le terminated mls Lease pursuant to Sectig1l 7 gr Sl!diDn 15 Or Wll shalll'la~e tennin8ted 1/!is Lea~e pl:rsuanllo Sedlon
<br />12. Subjecll11 Socllon 15 below, You p~mi5e 10 pay 1.0 Us tile Leas.e Paymllnl5 in Ihe amoul'\1s and on the daleS identified on IN! Schedule, plus all olher amou"ts staled here\n
<br />through ;ha SchtldulCd Term. rr the Equ ipment ind;Jda~ any so1':wace, You ~gree lhat Q) We don't own Lhe sCl1tWare, (il) "-ouare re~pon!li ble for enl8ri ng inlo a"y ne<:eSSlilI)'
<br />software li[;an5$ agleements l'Ii:h Vle ownel'El or ficensor& ~f SI.JCn sol\W~re, (iiiJ ,.00' shaN compiy ~h UlC lerttrs o3f 81' sucn 1Jg'~!!' it all)'. and lill) any dC(,11~t D)I Y~1l under
<br />8 ny 9Uch. agreemanls shall also constitute a default under ~i~ L8ilISEL
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<br />2. INTERESt AND PRINC/PAl. COMPONeNTS. APPllCArrON OF PAYMENTS: LATE PAYMENTS. DEFAULT /N1~R~Sr, As set flllth in.lhe Schl!>julill. a porJon or each
<br />l.C3se Payment is paid ~s, a"d r9pIIlSenl& payment at, ir,teIl!'31, and lh~ b~I;l"lCQ or eac:n Leese P~lhellt jg paid as, and saprasen!s p;:Iymem 01, prin~ipal. Resfr1dj~e
<br />enllOr&Cment~ On cr.ecks Ilre not bi nd,ng en Us. All pa~ments ""II be ap;>lied ll:l pasl dull amoums and: to the CI.llrent amount <!ue in &uch order as We d~1ermine Any &ecurity"
<br />dapos;t thaL "'OLI pay is non~nll:re&t bearing. If We dO not receive a PllymEnt !ly its dull dat&, You agre~ to p~y IIddi1ional inlerest of 1.5% per mOlllll or the mll~imum ra1e
<br />permlllcd Dy 11IW wnlchev;;!r is Je55 ("Default In""ut") on t~e 1~le poniDll from tha due dale to IIle dale pllid, YO\) llgree ThaI Defaull Inleresl i& reasonable corr,Pe-n'lIlion l!:lr lhe
<br />lime-value or mOO!l~ received late and is not a penally. You anl1 We unders18nd end intend lhal Yous ob!iga~on to pay Lease Payments and olher a mDun~S du~ under 1n,s Lease
<br />Shllll (Xlnslitule a (;urrent ~lIpQn&a and st\811 n~1 in any way be f:;Onstrueel 10 be a deb 1 'n contr~YI!fltil:ln of any applicable oonstilu!lonal or stau.1Dry limitalions or raquiremenlS
<br />concerning YQur ,reation of ir,debteclnes.s, nor ~hall anyfhing contained he~n oonslilute a pledge of't'our general tax re~enues, runds or monres.
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<br />J. UNCONDJTIONAL OBUGATION. You ~!J'ae that: (a} We are II separate and indepslld.nt company !rom the Sel~r, manufac:turer and anr othllr orondor fl;ollec:tlvely,
<br />"Vendl;lr.J"), and the V.ndors ani NOT Our IIgenls; Ib} no st!lt4llftlllll. I'1Iprllentlltlon or w;lrnnty br any V&ndOr IS bolnCllnlf on Us. and no Vendor ba'5 aull'loft!y to wain
<br />0' alter any 1erm Df this le~se; (e) YOIA, nol We, 8eleetlld the Equipn'lOIll. allel tn. \lendl;lB bil!led 01'1 Your own judgm&nt:; lei) Your elUly to iJ'lIrform Your obligatrons
<br />h....undor Is ab!lolute, unc:onditional and irt...,ocaDle ('lIbJe~t (II'Ily to Sec:tion 15 balO,") I" all tvenb without abatement, diminution, daduclion, set.ofl or defense, for
<br />~ny l"8a&on, Inc.luGtng wllh(l\Jt limitation, equipmant fail U 1'11, the eJl"I"'tenl;e Df" anr law nMim[;tilllllhO ue. of the Equipment, o~ any other adwors. CClllelltlon: {e) if Vau a~
<br />a ~arty to ~nr mainlon.llc~, supplies gr ctI1er c;DlltraCt Wilh a.ny Ifencll;lr. We are NOT a party thllrvtO, such conlnell, NOT part cf lhis Le;uoe (avlIIlI though We may, i1S
<br />II c:lHlvenience to YOu ancl a Vendor. bill and collec:t mDni.. oweCl Dy 10u to $uch Vendorl, and 110 b...acl'l boV any Vendor will eJr.Cu!le You from pltrl<lnnlng YOllr
<br />cbllg.atlDlls ID Us h/N~r; JIIllf 11' IIlh Equipment is unsatisf~l;tory or If any Ven.dor falla to prlJVids any aervin Of fUlfill any l1lher obllglllon to You, YOU ~hall not
<br />Illllke any el.lm against Us aTld snail contlllue to milke all payments and fullr porfoml under thia ba,..
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<br />4. lNDfiiHrNIFlCATtON To the ..tent permittoClIl)' allplle.ble law, and prlJVided YOu ha~ct leg.lly a"i1Jlable fun.d& fDr suc;tl purpOSe&;. YOU Shlllllndemnify ~nd dltfaTld
<br />u. against, Ind nold U, harmle&s for, any ~nd all clalills CIJ.e111dlng but not limibtd to claims for pe~onallnJul1J and deathl, iI[;tions, elamagos, U\tbllltl.5, losses and
<br />t;Osl$ {111CIUQI...g but not limited to rea&OI1~bl. ~~nl&'1" ~e!l) made against Us, gr IiUU....cr or Incurl'i!d by U5l, art51n!l' direc:tIy or indil"llcU)' out of, I;l~ otherwise- n!1atinij
<br />10, tn. dElli~try, lI1'~i1IIi1~lon, poss.ssign, oWllarship, us~, Ion I;lf U$e, defec:t in G/" millfunetlo" oflh. Eqlllpmen.t. This gllligation IiAallsurvlYIl tnll tennlnltion gf thi.
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<br />6. NO WARRANTIES, WE ARI: LEASING TKE EQUIPM.E:NT TO YOU "AS IS~. WE H.6,VE NOT MADE ANO HEREBY IJISC~IM ANY AND ALL WARRANTIES, U:PfilEaS
<br />OR 1M PLI ED, AR 1501 N.G BY APPLICABLE LAW 0 I{ OTHE !\WISE, INCLUOI NG WITHOUT UMIT A TI ON. THE 1M PLIED WARRANTIES OF MERCHANT "Bill TV AND FITNESS
<br />FOR'" PARTICUWl.F\ PURPOSE. We hereby llansfe-l t~ YilU, W11.1'ooUt recgurse 10 Us, all au1OO1atlcally trsnsrersble wllrranties, ij any, mads 10 Us by 1ne Vendor(s) of thl:
<br />E~,uipment.
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<br />Go TITl..E' SFCURlTY IN TERES.,; LOCATlON USE AND MAINTENANCe OF EOUIPMENT Unless o\h,a,.,,;s~ IIlqui_leI b)' the laws of ine Slate in which YDU alilllocaled, ur;on
<br />acceptance (), tnli' Eq\:ipmen1. f,tie tl:lthe Er::,uiprnent shall Y~st in YgU, !lubjecllO Our rights under thIS Le8S~; Ilro~k1l!dlnlll tifle shall1tlereaflllr imtl'll::d.ately and without any action
<br />Ily YDU ...est in Us, II nd VOL' shall ~mmEdia1el~ liutrOllder POSs.eSSiorl ot 1ne Equipment b:I U~, upoo any tennina1ion of this l..ene other 1han a lerminatlon pUt&Ua nt 10 Seaion 7. To
<br />securo. Your obllgalions hereur-der to Ua. You hereby {il gr~nt 10 Us iI fir~t priOfity lien and 5oI!curily interest In the eQuipment end llll proDl!ed5 thereaf an~ aull'lMze Us to reccro
<br />(and amend, if appropIl31e) Unrfonn Commercial Code rUCCllinanclng stalements i!'l order 10 perfed: Sul:h SllCl.Jlily' Interest. Ouring the Scheduled Term, Yl:lU .s.'1all not, .....Ithout
<br />Our prio, W!itIen DD~senl, p~Imll1he Equipment to beoome (i) attached 10 r9al prDperty or (ii) subjec1 to llny liens or encumbrances or anI" kind 'htlalsoever. Vou are respDnsible 101
<br />E~uIJlme~ Ihainlenance. You sMII not remove 'he Equipll1e-nt fr~m the Equ:pmer~t Loca'lon unless You first get Our permission Co d!) SO. YOl1 &hall give Us alXll!Sio ll:l lhe
<br />premis';5 v.na18 the Equiplner'\L IS locatell so i:"al We ma~ ins?ed the Equipment, and 'l"gu agree 1D pay OlJr cos~ in ocnr,actioo ~. w/'tell'/e/ (>I1IrCt'med pncr 10 or afllN 11'19
<br />CommenCEffient Dala. y"", shall u&e 1/"le t q"Jipmenl solely for the pu rpose cf pcrrormln(l one or more 01 Tour governmental funGtions am.! in <Ilecorda..,ce wltn a'.Ilaws, l:lperaof.on
<br />manual s, service conlr<ilcts (ir M:,'l and insuren~e requi.em'l!nlS, and shall n~t m31(e ~ny llermi'nenl a1teratioos IheAll!) Al YOu' ()WO cost, YOU snail keep tlle Equi pment in gO<ld
<br />wor1<ing mar and war'<Il"~ble /;OnditiQn, ord."na ry wear and ~ear ol~cop~d (MG 00(1 CDn.d Illon~)"
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<br />7. PURCftASE OPTIQN, At YO\,Ir option, and pl"Ollided that no Evetlt Qr [lera~lt hag ocaJrred and i~ oonlilluing, Our inlerest ,n 311, M nOlless IMn aJ, l:lf the Equipmonl wiU be
<br />Iran,~rrl1d, tonvayed and assigned. ~o You and Illig Lene will1erminala: {~) upon paymer.t 'n full of allleage Payments and all oth~r paymenls 1M... clue nereunder, I;Ir (b} on
<br />8.""1 Lease r'a~menl data, prov'.dod You have delivered w~lten notice alleasl1hilly ~~Ol days pl"lor to such dale of Your ill1ention 10 pu/[;hase 1tl~ Eq~iplllenlpur5uant 10 1t>is
<br />pr!:l~isjcn,.by paying 10 us, in additiOn 101/le Llla!lE! Payment dua on SUOl dale, an amount equal 10 the P~:mase Optlon Prioa. For purpe<s8& 0' this Lease, tl\e lerm ~PLlrchase
<br />Option Pric:.~ means, 3~ an~ <J1~en time, an amount equal to th~ sum of ~a) all Lease Pllyments and other ree. and charges then dUB and p;ut due, if ant, (b) all Lease f'lI"1"""nb
<br />~o DeCcme ~ue in l/1.a !U1u18 Ihro\lg!'l the rem~indef Df th~ Sc."'eduled Term, di&OOunted at a rsle eQuIII 10 !he Annual Rate sel forth on !ha Sd,adule. and (clll'1e app'ic~ble
<br />f'urch~&a Op;ion Pr4lmi':Jm. 11' any. for purpose9 of lhis hase, 1ha tern'l "pu,cr.a.. Opllon premlum~ means an amount equal to (i) 3% Df t~e Purcllase ODtlOn Price, if the
<br />E:ql1ipmen~ lJurchase occurs durillg the nr5t12-mo"1l"> Den.~d of the Scheduled Tenll: (i.> 2% of me Pllrchll~e Option Pr'ioe, if the Equipment purchase Da;urs during months 13
<br />tltrough 2.1, of Ihe S<:hed uled Te 1m; and (iii) 1 % 01 the Purcha:le OptIOn Price, if the Equipment pu rcnasp' OOOJrs during mafflhs 25 through :Hi cf the ocr.ed uled nlm. Ir lllll
<br />Seh~ulBa "term Is grea1e1 M8,., a6 mon~hg. I':ler. the~ is na Pu rCllase Op~on Premium for Equipment pur[;~ase& occuntng al'l9t mon1n Je.
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<br />8_ LOSS. OAMAGE: INSURANCE. You Shllll, at alllime5 during Ihis Lease, Ii) Oe3r t~e sisk of IlI'!I5 and damage 10 the Equipmenl and sh~1I o:Jn1inuo perrorming 811 Your
<br />oblia~n~ 10 Us ewe" if .t becomas damageel or su~ers a loss, (ii) kl!E!p the Equipmant insurl!lel against 311 risks of (l~mage and I~s ("ProP.rty In ,Ul'll nc."} in an amou nt at I~a~t
<br />ec.ual to th~ then 'ap;lliclI ble PurchaY! Option I' ri[;ll, wilh Us named as sole "less payee: and (ii i) eany publiC liability" insu ranee covenng bodll~ In] ul) and prollertv dllmllge
<br />(ML!..JlJIIJty mBUnIlrn:I,!",\ in.!!.? .!lmQ,J. nl ~ccepla~e tD u~, ....~Ih Us name<lIlS 'add".tional insured." 11 YDU in ~ ure personal pra~r1y simil.i!lr la 1/'.8 Equ ipmont agaln51 risks of damage
<br />IInd loss by sel{-im;uranC9, t!le" Wlln OLlr ~Ior wroten CDnsen1 You may SatiSfy YOl:r Property Insursno; (bIll not Liabilily Insur~nce) obligations b1'mllan5 I>f a 541rr'ln&uran~
<br />proll:am rell!lonably aooeptabla 10 Us. You shall pr<l~ide Us w~h !Iat;sfaclory a~ldlll'lC>8 of property and IJabil,ty InSllral'lCe within 30 ctays of \tie Comrflencement Dafe. Such
<br />lnSU ral'lOe Proof must IlI'D~id e for al laa~t 30 days pllor writletl no1Jce 1P Us before it may be c.anCilllled 01 lermiMled ~nd musl oontain o1hillr Illrn'lS ~a~is~aC1(1)' to Us If the
<br />Equl~rnel1t Q.. s"'V port>Ot'l tnereof i5 deg:royed (in wnole or in p~lt) or 'S d~1113~ed by file Dr other caaualty, the net prl:lceeda of any ir\5ul'ElllOl! claim (i.'clul:lin~ self-in~urance) ~hall
<br />bit applied, at Our Olllion to (i) the pr!:lmpt repair. resl.oratiM. modillcatlcn or replaa!ment of \he Eql1ipmel1l !IO aft"ecled, or Qi) the paymenl in 11;11 of Ihe lhen applicable Purch.ua
<br />Option Prlc(:, Any balll nee of net proceed 5 ,ema,'nir.;j after oompllllloo or such l'I()O"_ or payment of 5U<;h PU~as" Op1ion Price 9ha~ 'De !laiel promptly tD '1'0\1. If \hi! nel pr~adli
<br />are Insl.JlfIcl~ntlO pay the /;Om of sLJ<:h repair, reslol'Ellion. modifica:ion l:lr replaoemllnl or to p3~ such f'lIrcn~se Oplion ~lIce in f\.J1I, You sh~ II, aT Ou, direr,1il:ln, either oomplale- the
<br />wDrll Oi" pay t"'e lhen applicable Purena!e Option Price in fl.lIlllnd in ei~her -c.3&e- pay any cost in exee~s Of l~~ am.ol.Jnt 0' the nM proceeelS. llul only 'rom leGally 8~ailill;lt! 1un~s.
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<br />9. ,4SS/GNMENT. YOU SHALL NOT SELL, TRANSFI!R, ASSIGN OR 011fERWISE fNCUMBE~ ICl;lllewyely, ~TRANSFER"} THIS LEASE, OR TRANSFI:R OR SUBLEASE
<br />ANY EQUIPMENT, IN WHOLE OR IItl PART. We may, withDul YoUJ ellnSf3nl TranskJr Our inlere&1s In 1M !::qlllpmem af'ldlor \his lellse in whole or ifol part. to a third party (a
<br />"New Ownllr"}, in ",I licit case the Nel'l Owner ......11, to the- e~1ent of !lUCh Tran5ler. have all 01 Our rights and ben8fi1S but will not ha...e to perlorm Olrr oblig3tions QI any}. Upon
<br />~15l011 ~1 [)all... DUlI"",1 t~~"" .. SI~I~ & L~I Go.1 ! Ta,,-E.eAIOl I TBI<ElI I V'I.~
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