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2012-217ORDINANCE NO. 2O 12-21 � AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTR.ACT WITH ALEXANDER OPEN SYSTEMS (AOS),1NC. TO PROVIDE EMC AVAMAR DATA BACKUP SOLUTION AND PROFESSIONAL SERVICES AS AWARDED BY THE STATE OF TEXAS DEPARTMENT OF 1NFORMATION RESOURCES (DIR) THROUGH THE GO DIRECT PROGRAM, CONTRACT NUMBER DIR-SDD-1418; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR AND PROVIDING AN EFFECTIVE DATE. (FILE 5028-EMC AVAMAR DATA BACKUP SOLUTION AWARDED TO ALEXANDER OPEN SYSTEMS (AOS),1NC. AS A THREE YEAR LEASE PURCHASE AGREEMENT THROUGH DE LAGE LANDEN PUBLIC FINANCE LLC TOTALING $267,197.52). WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the Building and Procurement Commission programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the "Purchase Orders" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMER VENDOR AMOUNT 5028 Alexander Open Systems, Inc. $267,197.52 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the � day of , 2012. ' � � /J�i��.1 ,. . ; ..� ,� . �. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: �- APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY , BY: ' ` � e a-oxD-Fn s De Lage Landen Public Finance LLC Equipment Lease Purchase Agreement 1111 Old Eagle School Road DATED: August 17 , 20 12 Wayne, PA 19087 Full Legal Name Phone Number City of Denton 940-349-8595 DBA Name (if any) Bllling Address . CIty Slale Zip 601 E Hickory St Denton TX 76205 �uanlil Model Na. Serial Number �escd lion (Allach Separale Schedule If Necessar — See Equipment Description attached as Exhibit B Equipmenl Locallon (if nol same as above) Zip Vendar Name EMC CORPORATION Henlal Paymenl Periods: � Address — ❑ Monlhly Renlal Paymenls shall be made fn accordance with Seclion 4.01 and the 4246 COLLECTION CENTER DR ❑ �uarlerly ScheduleofRenlalPaymenlsallachedhereloasExhibilA. Cily Stale Zip _ ❑ Semiannually CHICAGO IL 60693 r�Annually TERMS & CONDITIONS THE TERMS AND CONDITIONS OFTHIS AGREEMENT SET FORTH ON THE FOLLOWING PAGES, INCLUDING ANY EXHIBITS ATTACHED HERETO, SHALL FDR ALL PURPOSES HAVE TNE SAME EFFECT AS IF SET FDRTH HERE. IN WITNESS OF, Lessor antl Lessee have caused this Agreementto be executed in their name by their duly authorized representatives as of the date written above. Lessor Lessee DE LAGE LANDEN PUBLIC FINANCE LLC City of Denton Signalure SignaWre - �1�.�aQt,� ' � �r�-/ Tille Tille Cl/1'1 � CJ,f /�_ Lease Number (Seaq PUB 11400 (Terms antl Condltions continued on the reverse side of this Agreement.) CERTIFICATE OF CLERN OR SECRETARY OF LESSEE I, the undersigned, do hereby certify that the officer of Lessee who execute ihe foregoing Agreement on behalf of Lessee and whose genuine signature appears thereon, Is the duly qualified and acting officer of Lessee as stated beneaih his or her signature and has been authorized to execute the forego(ng Agreement on behalf af Lessee. SIGNATUAE TITLE DAlE As legal counsel of Lessee, I hava examined (a) the Agreement, which, among otherthings provides for the sale to and purchase 6ythe Lessee of the Equipment, (b) an executed counterpart of the ordinance or resolution of Lessee which, among ofher ihings, authorizes Lessee to execute the Agreement and (c) such other opinions, docurnenis antl matters of law as I have deemed necessary In connection with the following opinions. Based on the foregoing, I am of the following opinions: (1) Lessee Is a public body corporate and politic, duly organized and existing under the laws of the State, and has a substantial amount of one or more of the following soverelgn powers: (a) the powerto tax, (b) the power of eminent domain, and (c) police power; (2) Lessee has the requisite power and authority to purchase the Equlpment and to execute and deliver the Agreement and to pertorm iis obligations under the Agreement; (3) the Agreement antl the other documents eiiher attached thereto or requlretl therein have been duly authorized, approved and executed by and on behalf of Lessee, and the Agreement is a valid and binding o6ligation of Lessee enforceable in accor- dance with its terms, exceptto the extent limited by applicable bankruplcy, Insolvency, reorganization or other laws affecting creditor's rights generally; (4) the authorizatlon, approval and execution of the Agreement and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance wlth all open meeting laws, public bidding laws and all other applicable state and federal laws; and (5) there is no proceeding pending orthreatened in any court or before any governmental authoriry or arbitraiion board ortribunal that, if adversely deter- mined, would adversely affect ihe transactions contemplated by the Agreement or the security interest of Lessor or its assigns, as the case may be, in the Equipment. All capitalized terms herein shall have the same meanings as In the Agreemer�. Lessor, its successars and assigns, and any counsel rendering an opinlon on the iax-exempt status of the interest components of Rental Payments are entllletl to rely on this opinion. Signalure Name Address Page 1 of 4 Dale Phone Number Cily Slale Zip ARTICLE I Sectian 1.01. Deiinitions. The tollowing terms will have the meanings indicated below unless the context clearly requires otherwise: "AgreemenP' means this Equipment Lease Purchase Agreement and any other schedule, exhibit or escrow agreement made a part hereof by the parties hereto, together with any amend- ments to ihe AgreemeM. "Code" means the Internal Revenue Code of 1986, as amended. "Commencement Date" is the date when the term of this Agreement and Lessee's obliga- tion to pay rent commence, which date shall be the earlier of (i) the tlate an which the Equipment is accepted by Lessee in the manner described in Section 5.01, or (ii) the date on which sufficient moneys to purchase the Equipment are depositetl by Lessor for that purpose with an escrow agent. "EquipmenP' means the property descrihed on the front of this Agreement, and all replace- ments, substitutions, repairs, restorations, motlifications, attachments, accessions, additions and Improvements thereof or thereto. "Event ol Default" means an Event of Default descrihed in Section 12.01. "Issuance Year" is the calendar year in which the Commencement Date occurs. "Lease Term" means the Original Term and all Renewal Terms, but ending on ihe occurrence of the earliest event speciiied in Section 3.02. "Lessee" means the entity described as such on the front of this Agreement, its suc- cessors and Its assigns. "Lessor" means the enf�ty descri6ed as such on ihe front of this Agreement, fts successors and iis assigns. "Maxlmum Lease Term" means the Original Term and all Renewal Terms through the Renewal Term including the last Rental Payment date set forth on the Payment Schedule. "Net Proceetls" means the amount remaining from the gross proceeds of any insurance claim or contlemnation award after deducting all expenses (inclutling attorneys' fees) incurred in the col- lection of such claim or award. "Original Term" means the periad from ihe Commencement Date until the end ofthe fiscal year of Lessee in effect atihe Commencement Date. "Payment Schedule" means the schedule of Rental Paymenis and Purchase Price setforth on Exhibit A. "Purchase Price" means the amount set forth on the Payment Schedule as the Purchase Price for the Equipment. "Renewal Terms" means the opiional renewal terms ofthis Agreement, each having a dura- tion of one year and a term co-extensive with Lessee's fiscal year. "Rental Payment Period" means the period beginning on the day a Rental Payment is due and ending the day before the next Rental Payment is due, The first Rental Payment Period shall hegin on the Commencement Date in all cases. If Rental Payment Periods are monthly, subse- quent Rental Payment Periotls shall begin on the same tlay of each month after the Commencement Date. If Rental Payment Periads are quarterly, subsequent Rental Payment Periods shall 6egin on the same day of each third month aflerthe Commencement Date. If Rental Payment Periods are semiannual, subsequent Rental Payment Perlods shall begin on the same day of each sixth month after the Commencement Date. If Rental Payment Periods are annual, subsequent Rental Payment Periods shall begin on the anniversary of the Commencement Date in each year. If the Commencement Date is the 29th, 30th, or 31st day of a month, any subse- queM Rental Payment Period that would otherwise begin on the 29th, 30th or 31 st of a month ihat does not include such a date shall begin on ihe last day of ihe month. "Rental Payments" means the basic rental payments payable by Lessee pursuant to Section 4.01. "State" means the siate in which Lessee is located. "Vendar" means the manufacturer of the Equipment as well as the agents or dealers of the manufacturer from whom Lessor purchasetl or Is purchasing the Equipment, as listed on the front of this Agreement. ARTICLE II Section 2.01. Representations and Covenants af Lessee. Lessee represents, warrants antl covenants forthe benefit of Lessor as follows: (a) Lessee is a municipal corporation and political su6division duly organized and existing under the constitution and laws of the State. Lessee will do or cause to be done all things to pre- serve and keep in full force antl ef6ect its existence as a body corporate and politic. Lessee is a political subdivision of the State within the meaning of Section 103(a) of ihe Code or a consiitut- ed auihoriiy authorized to issue obligations on behalf of a state or local gavernmental unit within the meaning of the regulaiions promulgated pursuant to saltl Sectlon of the Code. (b) Lessee is authorized underthe constitution and laws ofthe Stateto enter into this Agreement and the transaction contemplated hereby and to perform all of its abligations hereunder. (c) Lessee has been duly authorized to execute and tlellverthis AgreemeM by proper action and approval of its governing body at a meeting duly called, regularly convened and attended ihrough- out by a requisite majority of the members thereof or by other appropriate official approval. (d) This Agreement constitutes the legal, valitl and bintling obligation of the Lessee enforce- able in accordance with its terms, except to the extent limited by applicable bankrupicy, insolven- cy, reorganization or other laws affecting creditors' rights generally. (e) No event or condition ihat constitutes, or with the giving of notice or the lapse of time ar both would constitute, an Event of Default exists at the Commencement Date. (f) Lessee has, in accordance with the requirements of law, fully butlgetetl and appropriated sufficient funds for the current fiscal year to make the Rental Payments scheduled to come due during the Original Term and to meet its other obligations for the Original Term, and such funds have not 6een expended for other purposes. (g) Lessee will do or cause to be done all things necessary to preserve and keep in full farce and effect its existence as a body corporate and politic. (h) Lessee has complied wiih such public bidding requirements as may be applicable to this Agreement and the acquisition by Lessee of the Equipment hereunder. (i) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public boartl or body, pentling or threatenetl against or affecting the Lessee, nor to the best knowledge of the Lessee is there any basis lherefor, whereln an unfavorable decision, rul- ing or finding would materially adversely affect the transactions contemplated by this Agreement or any other document, agreement or certificate which is used or contemplated for use in the con- summation of the transactions contemplated by this Agreement or maierially adversely affect the financial condition or properties of Lessee. (j) All authorizatlons, consenis and approvals of governmental botlies or agencies required in connection with the execution and delivery 6y the Lessee of this Agreement or in connection with the carrying aut by the Lessee of its obligations hereunder have been obtained. (k) The eniering into and pertormance of this Agreement or any other document or agreement contemplated hereby to which the Lessee is or is to he a party will not violate any judgment, order, law or regulation applicable to the Lessee or result in any breach of, or constitute a default under, or result in the creation of any Ilen, charge, securiiy interest of other encumbran�e on any assets of the Lessee or the Equipment pursuant to any indenture, mortgage, deed of trust, 6ank loan or credit agreement or other instrument to which the Lessee is a party or by which it or its assets may be bound, except as herein provided. (I) The Equipment descri6ed in this Agreement is essential to the functlon of the Lessee orto the service Lessee provides to its citizens. The Lessee has an immediate need for, and expects to make immediate use of, substantially all the Equipment, which need is not temporary or expected to diminish in the foreseeable future. The Equipment will be used by Lessee only for the purpose of performing one or more of Lessee's governmental or proprietary functlons consisteM with the permissible scope of Lessee's authority and will not be used in the trade or business of any other entiry or person. (m) Lessee will comply with all applicable provisions ofthe Code, inclutling wlihout limitation Sections 103 and 148 thereof, and the applicable regulations of the Treasury Department to main- tain the exclusion of the interest components of Rental Payments from gross income for purpos- es of federal income taxation. (n) Lessee has never failed to appropriate or otherwise make available funds sufficieM to pay rental or other payments coming due under any lease purchase, installment sale or other similar agreement. Section 2.02. Ceriifieation as lo Arbifrage, Lessee hereby represents as follows: (a) The estimated total costs of the Equipment will not be less ihan the total principal portion of the Rental Payments. (b) The Equipment has been orderetl or Is expected to be ordered within six months of the Commencement Date, and the Equipment is expected to be delivered and installed, and ihe Vendor fully paid, within one year of the Commencement Date. (cj Lessee has not created or established, and tloes not expectto create or establish, any sink- ing funtl or other similar fund (i) that is reasonably expected to be used to pay the Rental Payments, or (ii) that may be used solely to prevent a tlefault in the payment of the Rental Payments. (d) The Equlpment has not been and is not expected to be sold or otherwise disposed of by Lessee, either in whole or in major part, prior to the last maturity ot the Rental Payments. (e) To the best of our knowledge, informaiion and belief, the above expectatlons are reasonable ARTICLE III Section 3.01. Lease of Equlpment Lessor hereby demises, leases and lets the Equipment to Lessee, antl Lessee renis, leases and hires the Equipment from Lessor, in accordance with the pro- visions of this Agreement, forthe Lease Term. The Original Term ofthis Agreement shall commence on the Cammencement Date and shall terminate on the last tlay of Lessee's current fiscal year. The Lease Term may be continued at ihe end of the Original Term or any Renewal Term for an addition- al Renewal Term up to ihe Mauimum Lease Term; provided, however, that at the end of ihe Original Term and at ihe end of each Renewal Term untfl the Maximum Lease Term has been completed, Lessee shall be deemed to have continued ihis Agreement for the next Renewal Term unless Lessee shall have terminated this Agreement pursuant to Section 3.04 or Section 10.01. The terrns and con- ditions during any Renewal Term shall be the same as the terms and conditlons during the Original Term, except that the Rental Payments shall be as provided in the Payment Schedule. Section 3.02. Termination of Lease Term. The Lease Term shall terminaie upon the earli- est of any of the following events: (a) the expiration of the Original Term or any Renewal Term and the nonrenewal of this Agreement In the event of nonappropriation of funds pursuant to Section 3.04; (b) the exercise by Lessee of the option to purchase the Equipment untler Article X and pay- ment of the Purchase Price antl all amounts payable in connection therewiih; (c) a default by Lessee and Lessor's eleotion to terminate this Agreement under Article XI I; or (d) ihe payment by Lessee of all Rental Payments authorized or requlred to be paid by Lessee hereunder during the Maximurn Lease Term. Secilon 3.03. Continuatian of Lease Term. Lessee currently iniends, subject to Section 3.04, to continue the Lease Term through the Original Term and all of the Renewal Terms and to pay the Rental Payments hereunder. Lessee reasonably believes that legally available funds in an amount sufficlent to make all Rentai Payments during the Original Term and each of ihe Renewal Terms can be obtained. The responsi6le financial officer of Lessee shall tlo all things lawfully with- in his or her power to obtain and maintain funds from which ihe Rental Payments may be made, including maWng provision for such Rental Payments to the e�ent necessary in each proposed annual budget submitted for approval in accortlance with applicable procedures of Lessee and to exhaust all available reviews and appeals in the event such portion of the budget is not approved. Notwithstanding the foregoing, the deefsion whether or not to budget or appropriate funds or to e�end this Agreement for any Renewal Term is solely within the tliscretion of the then current gov- erning bady of Lessee. Seciton 3.U4. Nonapprapriation. Lessee is obligated onlyto pay such Renial Payments under this Agreement as may lawfully 6e made from funds budgeted and appropriated for that purpose tluring Lessee's then current fiscal year. In the event sufficient funds shall not he appro- priated or are not otherwise legally avallableto pay the Rental Payments required to be paid fn the ne� occurring Renewal Term, as set forth in the Payment Schedule, this Agreement shall be tleemetl to be terminated at the end of the then current Original Term or Renewal Term. Lessee agrees to tlellver written notice to Lessor of suoh termination at least 90 days prior to the end of the then current Original Term or Renewal Term, hut failure to give such notice shall not extend the Lease Term beyond such Original Term or Renewal Term. If this Agreement is terminated in accortlance with this Section, Lessee agrees, at Lessee's cost and expense, to peaceably deliver the Equipment to Lessor at the locatian or locations specified by Lessor. Page 2 of 4 ARTICLE IU Section 4.01. Renlal Payments. Lessee shall pay Rental Payments , exclusively from legal- ly available funds, in lawful money of the United States of America io Lessor on the dates and In the amounts set forth on the Payment Schedule. Any Rental Payment not received on or before its due date shall bear Ir�erest at the rate of 18% per annum or the maximum amount permittetl by law, whichever is less, from its due date. As set forth on the Payment Schedule, a portion of each Rental Payment is paid as, and represents payment of, iMerest. Section 4.02. Renlal Payments io Canstitute a Current Expense of Lessee. The obligation of Lessee to pay Rental Paymenis hereunder shall constitute a curreM expense of Lessee, and do not constitute a mandatory payment obligation of Lessee In any fiscal year beyond the then cur- rent fiscal year of Lessee. Lessee's obligation hereunder shall not in any way be construed to be a debt of Lessee in contravention of any applicahle constitutional or statutory limitation or require- ment concerning the creation of indebtetlness by Lessee, nor shall anything contained herein con- stitute a pledge of the general credit, tax revenues, funds or moneys of Lessee. Seetion 4.03. Rental Paymenls To Be lJnconditional. EXCEPT AS PROUIOED IN SECTION 3.04,,THE OBLIGATIONS OF LESSEE TO MAKE RENTAL PAYMENTS ANU TO PERFORM AND OBSERIIE THE OTHER COVENANTS AND AGREEMENTS CONTAINE� HEREIN SHALL BE ABSOLl1TEAND UNCONDITIONAL IN ALL EVENTS WIiHOl1TA9ATEMENT, OIMINUTION, UEOUC- TION, SEf-OFF OR DEFENSE, FOR ANY REASON, INCLUDING WITHOUT LIMITATION ANY FAIL- URE OF THE EQUIPMENT TO BE OELIVERED OR INSTALLED, ANY DEFECTS, MALFUNCTIONS, BREANOOWNS OR INFIRMITIES IN THE EQIIIPMENT OR ANY ACCIUENT, CONDEMNATION OR UNFORESEEN CIRCUMSTANCES. ARTICLE V Seetion 5.01. �elivery, Installation and Aceeptance of ihe Equipment. Lessee shall order the Equipment, cause the Equipment to 6e delivered and installed at the location specified on the front of this Agreement and pay any antl all delivery and installation costs in connection therewith. When the Equlpment has been delivered and installed, Lessee shall immediately accept the Equipment and evi- dence said ascepiance by execuling and delivering to Lessor an acceptance ce�ificate acceptable to Lessor. After it has been installed, the Equipment will not be moved from the location specifietl on the from of this Agreement without Lessors consent, which consent shall not 6e unreasonably withheld. Seetion 5.02. Enjoymeni of Equipment. Lessee shall peaceably and quietly have and hold and enjoy the Equipment during the Lease Term, without suit, trouble or hindrance from Lessor, except as otherwise expressly set forth In this Agreement. Seetion 5.03. Right af Inspeetion. Lessor shall have the right at all reasona6le times dur- ing regular business hours to enter into and upon the property of Lessee for the purpose of inspecting the Equipment. Seetian 5.04. Use and Maintenanee o( the Equipment. Lessee will not Install, use, operate or mainiain the Equipment improperly, carelessly, in violation of any applicable law or in a man- ner contrary to that contemplated 6y this Agreement. Lessee shall obtaln all permits and licens- es, if any, necessary for the installation and operation of the Equipment. In addition, Lessee shall comply in all respects with all applicable laws, regulations and rulings of any legislative, executive, administrative orjudicial body; provided that Lessee may contest In good falth the validiiy or appli- cation of any such law, regulatlon or ruling In any reasonable manner that does not, in the opin- ion of Lessor, adversely affect the interest of Lessor in and to the Equipment or its interest ar rights underthis Agreement. Lessee agrees ihat it will, at Lessee's own cost antl expense, maintain, pre- serve antl keep the Equipment in gootl repalr, working order and condition. If requested to do so by Lessor, Lessee will enter into a maintenance contract forthe Equipment with Vendor. LESSOR SHALL HAVE NO RESPONSIBILITY TO SERVICE, MAINTAIN, REPAIR OR MAKE IMPROVE- MENTS OR ADDITIONS TO THE EQUIPMENT. LESSEE SHALL MAKE ALL CLAIMS FOR SERVICE aR MAINTENANCE SOLELY TO THE VENDOR AND SUCH CLAIMS WILL NOT AFFECT LESSEE'S OBLIGATION TO MAKE ALL REQUIRE� RENTAL PAYMENTS. ARTICLE VI Section 6.01. Title to the Equipmeni. During the Lease Term, title to ihe Equipment shall vest in Lessee, subJectto the rigMs of Lessor underthis Agreemeni; provided that title shall there- after immediately and without any action by Lessee vest in Lessor, antl Lessee shall immediaiely surrender possession of the Equipment to Lessor upon (a) any termination of this Agreement other than termination pursuant to Section 10.01, or (b) the occurrence of an Event of Default. It is the intent of the parties hereto ihat any transfer of title to Lessor pursuant to this Section shall occur automatically w(thout the necessity of any bill of sale, certificate of tlile or other instrument of conveyance. Lessee shall, nevertheless, execute and deliver any such instruments as Lessor may request to evidense such transfer. Lessee irrevocably designates, makes, constitutes and appoints Lessor antl its assignee as Lessee's true and lawful attorney (antl agent in-fact) with power, at such time of termination ortimes thereafter as Lessor in its sole and absolute discretion may determine, in Lessee's or Lessor's or such assignee's name, to endorse the name of Lessee upon any 6ill of sale, document, instrument, invoice, freight bill, bill of lading or similar document relating to the Equlpment in order to vesttitle in Lessor and transfer possession to Lessor. Section 6.02. Securily Interest. To securethe paymentof all of Lessee's obligalions untlerthis Agreement, Lessor retains a securiry interest constituting a first lien on the Equipment and proceeds therefrom. Lessee agrees to execute such additional documents, in form satisfaciory to Lessor, that Lessor deems necessary or appropriate to establish and mair�ain its securiiy interest. Lessee agrees that financing statements may be filed with respect to the security Interest In the EquipmeM. Section 6.03. Personal Properly. Lessor and Lessee agree that the Equipment is and will remain personal property. The Equipment will not be deemed to be affixed to or a part of the real estate on which it may be sftuated, notwithstantling that the Equlpment or any part ihereof may be or hereafter become in any manner physically affixed or attaohed to such real estate ar any building thereon. Upon the request of Lessor, Lessee will, at Lessee's expense, furnish a waiver of any Inter- est in the Equipment from any party having an interest in any such real estate or building. AHTICLE VII Section 7.01. Liens, Taxes, Other Governmenial Charges and Utility Charges. Lessee shall keep the Equipment free and clear of all liens, charges antl encumbrances, except those cre- ated underthis Agreement. The parties to ihis Agreement contemplate that lhe Equlpment will be used for a governmental or proprietary purpose of Lessee and, therefore, that the Equipment will be exempt from all taxes antl other simllar charges. if the use, possession or asquisition of the Equipment is found to be subject to taxation in any form, Lessee will pay all taxes and govern- mental charges lawfully assessed or levied against orwith respectto the Equipment. Lessee shall pay all utility and other charges incurred In the use and maintenance of the Equipment. Lessee shall pay such taxes and charges as ihe same become due; provided that, wiih respect to any such taxes and charges that may lawfully be paid in installments over a period ofyears, Lessee shall be obligated to pay only such installments that accrue during the Lease Term, Sectian 7.02. Insurance. At its own expense, Lessee shall maintain (a) casualty insurance insuring the Equipment against loss or damage by fire antl all other risks covered bythe stantlard extendetl coverage endorsement then in use in the State and any other risks reasonably required by Lessor in an amount at least equal to the then applicable Purchase Price of ihe Equipment, (b) liability insurance that protects Lessor from liabiliiy in all events in form and amount satisfactory to Lessor, and (c) workers' compensation coverage as required bythe laws of the State; provlded that, with Lessor's prior written consent, Lessee may self-insure against the risks described in clauses (a) and (b). All insurance proceeds from casualty losses shall be payable as herelnafter provided. Lessee shall furnish to Lessor certificates evidencing such coverage throughout the Lease Term. All such casualry and liability insurance shall 6e with insurers that are accepiable to Lessor, shall name Lessor as a loss payee and an additional insured, respectively, and shall con- tain a provision to the effectthat such Insurance shall not be cancelled or madified materially with- out first giving written notice thereof to Lessor at least ten days in advance of such cancellation or modification. All such casualty insurance shall contain a provision making any losses payable to Lessee antl Lessor, as their respective interests may appear. Section 7.03. Advances. In the event Lessee shall fail to either maintain the insurance required by ihis Agreement, pay the taxes or charges required to be paitl by it untler ihis Agreement or keep the Equipment in gootl repalr and working order, Lessor may, but shall be under no obligaiion to, purchase the required policies of insurance and pay the cost of the premi- ums thereof, pay such taxes and charges and mainiain and repairihe Equipment and pay the cost thereof. All amounts so advanced by Lessor shall become additional rent for the then current Original Term or Renewal Term. Lessee agrees to pay such amounts with interest thereon from the date paid at the rate ot 12°/ per annum or ihe maximum permitted by law, whichever is less. Seclion7.04. Financiallniormation. LesseewillannuallyprovldeLessorwithcurrentfinan- cial statements, budgets, proofs of appropriation forthe ensuing fiscal year and such other finan- cial information relating to the ability of Lessee to continue this Agreement as may be requested by Lessor. Section 7.05. Release and Intlemnlfication. To the extent permitted by law, Lessee shall intlemnify, protect and hold harmless Lessorfrom and against any and all liability, ohligations, loss- es, claims and damages whatsoever, regardless of cause thereof, and expenses in connection there- with (including, without limitation, counsel fees and expenses and any fetleral income tax and inter- est and penaflies connected therewRh imposed on iMerest received) arising out of or as the result of (a) ihe entering Into this Agreement, (b) the ownership of any item ofthe Equipment, (c) the man- ufacturing, ordering, acquisition, use, operation, condition, purchase, delivery, rejection, storage or return of any Item of the Equlpmer�, (d) any accident in connection with the operation, use, condi- tion, possessian, storage or return of any item of the Equipment resulting in damage to property or injury or deaih io any person or (e) the breach of any covenarrt herein or any material misrepresen- tation containetl herein. The intlemnification arising underthis paragraph shall oontinue in full force and effect notwithstanding the tull payment of all obligations under this Agreement or the termina- tion of the Lease Term for any reason. ARTICLE VIII Sectian 8.01. Risk of Lass. Lessee assumes, irom and including the Commencement Date, all risk of loss of or damage to the Equipment from any cause whatsoever. No such I�ss of or dam- age to ihe Equipment nor defect iherein nor unfitness or obsolescence thereof shall relieve Lessee of the obligation to make Rental Payments or to perform any other obligation under this Agreement. Secllon 8.02. Uamage, Destruction and Condemnation. If (a) the Equipment or any por- tion thereof is destroyed, in whole or in part, or is damaged by fire or other casualty, or (b) title to, or the temporary use of, the Equipment or any part thereof or the interest of Lessee or Lessor in the Equlpment or any part thereof shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm or corporation acting untler govern- mental authority, Lessee and Lessor will cause ihe Net Proceetls of any insurance claim or con- demnation award to be applied to the prompt replacement, repair, restoration, modification or improvement of the Equipment, unless Lessee shall have exercised its option to purchase the Equipment pursuantto Seciion 10.01. Any balance ofthe Net Proceeds remaining after such work has been completed shall be pald to Lessee. Section 8.03. Insufficieney af Net Proceeds. If the Net Proceeds are insufficlent to pay fn full the cost of any repair, restoration, modification or improvement referred to in Section 8.01, Lessee shall either (a) complete such replacement, repair, restoration, modification or improve- ment and pay any costs thereof in excess of the amount of the Net Proceeds, or (b) purchase Lessors interest in the Equipment pursuantto Section 10.01. The amount of the Net Proceeds, if any, remaining aftercompleting such repair, restoration, modification or improvement orafter pur- chasing the Equipment shall be retained by Lessee. If Lessee shall make any payments pursuant io this Section, Lessee shall not be entitled to any relmbursement therefor from Lessor nor shall Lessee be entitled to any diminution of the amounts payable under Article IV. ARTICLE IX Saetion 9.01. Oisclaimer ol Warranties. LESSOR MAKES NO WARRANTY OR REPRE- SENTATION, EXPRESS DR IMPLIED, AS TO THE UALUE, DESIGN, CON�ITION, MER- CHANTABILITY OR FITNESS FOR PARTICULAR USE OR PURPDSE OF THE EQUIPMENT OR AGAINST INFRINGEMENT, OR ANY OTHER WARRANTY OR REPRESENTATION WITH RESPECT THERETO. IN NO EVENT SHALL LESSOR BE LIABLE FOR ANY ACTUAL, INCIDENTAL, INDI- RECT, SPECIAL OR CONSEQUENTIAL DAMAGE IN CONNECTION WITH OR ARISING OtIT OF THIS AGREEMENT OR THE EXISTENCE, FURNISHING, Fl1NCTI0NING OR LESSEE'S USE OR MAINTENANCE OF ANY EQUIPMENT OR SERUICES PROUIDEO FOR IN THIS AGREEMENT. Section 9.02. Uendor's Warranties. Lessee may have rights underthe contractevitlencing the purchase of the Equipment; Lessee is advised to contact the Vendor for a description of any Paqe 3 of 4 sush rights. Lessor hereby assigns to Lessee during the Lease Term all warranties running from Ventlor to Lessoc Lessor herehy irrevocably appoints Lessee its agent and attorney-in-fact dur- ing the Lease Term, so long as Lessee shall not be in default hereunder, to assert from time to time whatever clalms and rights (including without limitation warraniies) related to the Equipment that Lessor may have against the Vendor. Lessee's sole remedy for the breach of any such warranty, indemnification or representation shall be against the Vendor, and not against Lessor. Any such matter shall not have any effect whatsoever on the rights and obligations of Lessor with respect to this Agreement, including the right to receive full and iimely payments hereunder. Lessee expressly acknowletlges ihat Lessor makes, and has matle, no representations or warranties whatsoever as to the existence or availability of such warranties by any Vendor. ARTICLE X Section 10.07. Purchase Optian. Lessee shall have the option to purchase Lessor's interest in all (but not less ihan all) of the Equipment, upon giuing written notice to Lessor at least 60 (but not more than 180) days before the date of purchase, atihe following times and upon the following terms: (a) On any Rental Payment Date, upon payment in full of ihe Rental Payments and all other amounts then due hereunder plus the then applicable Purchase Price to Lessor; or (b) In the event of substantial damage to or destruction or condemnation of substantially all of the Equipment, on the day Lessee specifies as the purchase date in Lessee's notice to Lessor of its exercise of the purchase option, upon payment in full of the Rental Payments and all other amouMs then due hereunder plus (i) the Purchase Price designated on the Payment Schedule for such purchase date if such purchase date is a Rental Payment Date orthe Purchase Price forthe immediately preceding Rental Payment Date if such purchase tlate is not a Rental Payment Date, and (ii) if such day is not a Rental Payment Date, an amount equal to ihe portion of the interest component of the Rental Payment scheduled to come due on the following Rental Payment Date accrued from the immediately preceding Rental Payment Date to such purchase date, computed on the basis of a 360-day year of twelve 30-day months. Upon the exercise of the option to purchase set forth a6ove, title to the Equipment shall be vestetl in Lessee, free and clear of any claim by or ihrough Lessor. Section 10.02, Determinailan of Fair Purchase Priee. Lessee and Lessor hereby agree and determine that ihe Rental Payments hereunder during the Original Term and each Renewal Term represent ihe fair value of the use of the Equipment and that the amount requlretl to exercise Lessee's option to purchase the Equipment pursuant to Section 10.01 represents, as of the end of the Original Term or any Renewal Term, the fair purchase price of the Equipment. Lessee hereby determines that the Rental Payments do not exceed a reasonable amount so as to place Lessee untler a practical economic compulslon to renew this Agreement or to exercise its option to pur- chase the Equipment hereunder. In making such determinations, Lessee and Lessar have given consideration to (a) the costs of the Equipment, (h) the uses and purposes for which the Equipment will be employed by Lessee, (c) the benefitto Lessee by reason of the acquisition and installation of the Equlpment and the use of the Equipment pursuant to the terms and provisions of this Agreement, and (d) Lessee's option to purchase the Equipment. ARTICLE XI Section 11.01. Assignment hy Lessor. Lessor's inierest in, to antl untlerthis Agreement and the Equipment may, without notice to or the consent of Lessee, be assigned and reassigned in whole or in part to one or more assignees by Lessor. Lessee hereby appoints Municipal Registrar Services (the "Registrar") as its agent forthe purpose of maintaining a written recortl of each such assignment in form necessary to comply with Section 149(a) of the Code. No such assignment shall be binding on Lessee until the Registrar has received written notice from Lessor of the name and address ofthe assignee. Lessee agrees to execute all documents, including chattel mortgages or financing statements that may be reasonably requested by Lessor or any assignee to protect its interest in the Equipment and in this Agreement. Lessee shall not have the right to and shall not assert against any assignee any claim, counterclaim, defense, set-off or other right Lessee may from time to time have against Lessor. Sectian 11.02. Asslgnment and Suhleasing by Lessee. None of Lessee's right, title and interest in, to and under this Agreement and in ihe Equipment may be assignetl or encumbered by Lessee for any reason, exceptthat Lessee may sublease all or part of the Equipment if Lessee obtains the prlor written consent of Lessor and an opinion of nationally recognized counsel in the area of tax exempt municipal obligations satisfactoryto Lessorihat such subleasing will not adversely affect the exclusion of the interest components of the Rental Payments from gross income for federal income tax purposes. Any such sublease of all or part of the Equipment shall be subject to this Agreement and the rights of the Lessar in, to and under this Agreement and the Equipment. ARTICLE XII Section 12.01. Events ot Uefauit Detined. SubJect to the provislons of Section 3.04, any of the following shall be "Events of DefaulY' under this Agreement: (a) Failure by Lessee to pay any Rental Payment or other payment required to be paid here- under at the time specified herein; (b) Failure by Lesseeto observe and perform any covenant, condilion or agreement on its part to be observed or performed, other than as referred to in Section 12.01(a), for a period of 30 days after written notice, specifying such tailure antl requesting that it be remedied, is given to Lessee by Lessor, unless Lessor shall agree in writing to an exlension of such time prior to its expiration; provided, however, if ihe failure stated in the notice cannot be corrected within the applicable peri- od, Lessor will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by Lessee within the applicable period and diligently pursued until the default is corrected; (cj Any statement, represeniation or warranty made by Lessee in or pursuant to this Agreement or its execution, delivery or performance shall prove to have been false, incorrect, mis- leading or breached in any maierial respect on the date when made; (d) Any provision of this Agreement shall at any time for any reason cease to be valid and binding on Lessee, or shall be declared to be null and void, orthe validity or enforceability there- of shall be contested by Lessee or any governmental agency or authority if the loss of such pro- vision would materially adversely affect the rights or security of Lessor, or Lessee shall deny ihat ft has any further liability or obligatlon under this Agreement; (e) Lessee shall (i) apply for or consent to the appointment of a receiver, trustee, custodian or liquidator of Lessee, or of all or a substaniial part of the assets of Lessee, (ii) be unable, fail or admit in writing its inability generally ta pay its debts as they become due, (III) make a general assignment for the benefit of creditors, (iv) have an order for relief entered against it under appli- cable federal bankruptcy law, or (v) file a voluntary petiiion in bankruptcy ora petition oran answer seeking reorganization or an arrangementwith creditors ortaking advantage of any insolvency law or any answer admitting the materlal allegations of a petition filetl against Lessee in any bank- ruptcy, reorganization or insolvency proceeding; or (f) An order, judgment or decree shall be entered by any court of competent jurisdiction, approving a petition or appointing a receiver, trustee, custodian or liquidator of Lessee or of all or a substantial part of the assets of Lessee, in each case wiihout its application, approval or con- sent, and such order, judgment or decree shall continue unstayed and in effect for any period of 30 consecutive days. Seetion 12.02. Remedies an Default. Whenever any Event of Default exists, Lessor shall have the right, at its sole option without any further demand or notice, to take one or any combl- nation of the following remedial steps: (a) By written notice to Lessee, Lessor may declare all Rental Payments and other amounts payable by Lessee hereunderto the end ofthethen current Origfnal Term or Renewal Term to be due; (b) With or without terminating this Agreemerrt, Lessor may enter the premises where the Equipment is located and retake possession of ihe Equipment or require Lessee at Lessee's expense to promptly return any orall of ihe Equipmentto the possession of Lessor ata place spec- ifietl by Lessor, and sell or lease the Equlpment or, for the account of Lessee, sublease the Equlpment, holding Lessee liable for the difference 6etween (i) the Rental Payments and other amounts payable by Lessee hereuntler plus the then applica6le Purchase Price, and (li) the net proceeds of any such sale, lease or sublease (after deducting all expenses of Lessor in exercising its remedies underthis Agreement, including without limitation, all expenses of taking possession, storing, reconditioning and selling or leasing the Equipment and all brokerage, auctioneers' and attorneys' fees); provided that the amount of Lessee's liability under this subparagraph (b) shall not exceed the Rental Payments and other amounts otherwise due hereunder plus the remaining Rental Payments and other amounts payable by Lessee hereunderto the end of the then current fiscal year af Lessee; and c) Lessor may take whatever other action at law or in equiry may appear necessary or desir- able to enforce its rights as the owner of the Equipment. In addition, Lessee will remain liable for all covenants and indemnities under this Agreement and for all legal fees antl other costs and expenses, including court costs, incurred by Lessor with respect to the enforcemeM of any of the remedies listed above or any other remedy available to Lessor. Lessor may charge interest on all amounts due to it at the rate of 18% per annum or the maximum amount permitted by law, whichever is less. Section 12.03. No Remedy Exclusive. No remedy herein conferred upon or reservetl to Lessor is intended to be exclusive and every such remedy shall be cumulative antl shall be In addi- tion to every other remedy given under ihis Agreement or now or hereafter existing at law or in equity. No delay or omission to exeroise any right ar power accruing upon any default shall impair any such right or power or shall be construed to be a waiverthereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient, in arder to enti- ile Lessor to exercise any remedy reserved to it in this Article it shall not be necessary to give any notice, other than such notice as may 6e required in this Article. ARTICLE XIII Section 13.01. Notiees. All notices, certiiicates or other communications hereunder shall 6e sufficiently given and shall 6e deemed given when delivered or mailed by registered mail, postage prepaid, to the parties at the adtlresses on the front of this Agreement (or at such other adtlress as eRher party hereto shall designate in writing to the other for noiices to such party), to any assignee at its address as it appears on the registration books malntained by Lessee. Seclion 13.02. Binding Eitect. This Agreement shall inureto the benefit of and shall be 6ind- Ing upon Lessor and Lessee and their respective successors and assigns. Section 13.03. Severahility. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or rentler unenforceable any other provision hereof. Section 13.04. Entire Agreement. This Agreement constitutes the entire agreemerrt between Lessorand Lessee. Section13.05. Amendments. ThisAgreementmay6eamendedinwritingbyLessorandLessee. Section 13.06. Execuiion in Counterparts. This Agreement may be simultaneously execut- ed in several counterparts, each of which shall be an original and all of which shall constitute 6ut one and the same Instrument. Section 13.07. lJsury. The parties hereto agree that the charges in this Agreement shall not be a violation of usury or other law. Any such excess charge shall be applied in such order as to conform ihis Agreement to such applicable law. Seetion 13.06. Jury Trial Waiver. TO THE EXTENT PERMIITEU BY LAW, LESSEE AGREES TO WAIVE ITS RIGHT TD A TRIAL BY JURY. Sectlon 13.09. Facsimile �ocumentation. Lessee agrees that a facsimile copy of this Agreement with facsimile signatures may be treatetl as an original antl will be atlmissible as evi- tlence of this Agreement. Secllon 13.10. Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or inte�rt of any provisions or sections of this Agreement. Sectlon 13.11. Applicable Law. This Agreement shall be governed by and construed in accordance with ihe laws of the State. Page 4 ot 4 �02009 All Nighfs Reserved. Prinled in Ihe 11.S.A. 07PFO00045v1 3/09 T i � � 0 C7 0 c � d ti 0 AMENDMENT TO EQUIPMENT LEASE PURCHASE AGREEMENT This Amendment tb that certain Equipment Lease Purchase Agreement (together with all Exhibits and this Amendment, the "AgreemenY') dated as of August 20, 2012, between De Lage Landen Public Finance LLC (together with its successors and assigns, "Lessor"), and City of Denton (together with its successors and assigns, "Lessee"), is incorporated in and is hereby made a part of the Agreement. Lessor and Lessee hereby agree that capitalized terms used herein and not otherwise defined herein shall have the terms assigned to such terms in the Agreement and that the following changes and additions are hereby made to the Agreement: 1. The Opinion of Counsel is deleted in its entirety from the Equipment Lease Purchase Agreement. 2. Section 2.01(n) of the Agreement REPRESENTATIONS AND COVENANTS OF LESSEE: is amended to add "In the last five (5) years" to the beginning of the first sentence. 3. Section 3.04 of the Agreement NONAPPROPRIATION: is amended to change "90 days" to "30 days" in sentence three. 4. Sections 7.02 INSURANCE and 7.05 RELEASE AND INDEMNIFICATION of the Agreement: are deleted in their entirety and replaced with "7.05 LESSEE'S NEGLIGENCE: Lessee assumes all risks and liabilities, whether or not covered by insurance, for loss or damage to the Equipment. To the extent permitted by law, Lessee assumes all risks and liabilities, whether or not covered by insurance, for damage to any property, whether such property damage be to lessee's property or the property of others, which is proximately caused by the negligent conduct of Lessee, its officers, employees and agents. 5. Section 12.02(b) of the Agreement: is amended to delete from the first sentence "enter the premises where the Equipment is located and retake possession of the Equipment or" 6. Section 13.08 of the Agreement JURY TRIAL WAIVER: is deleted in its entirety. Except as specifically set forth in this Amendment, all terms and conditions contained in the Agreement remain in full force and effect and are hereby ratified and confirmed. LESSOR: De Laqe Landen Public Finance LLC BY: ���Lt� AUTHORIZED SIG ATURE Susan Vekony BY: Manag�[, Contract Administration PRINTED NAMEAND TITLE ADDRESS: 1111 Old Eaqle School Road LESSEE: Citv of Denton BY: X / �''— HORiZED GNATURE aY: �E7�2CaC c_._� . �y9M ��3 �L_L. �i T �/ l��f��l /1�Cr�� PRINTEDNAMEANDTITLE ' ADDRESS: 601 E Hickorv St Wayne, PA 19087 Denton, TX 76205 DATE: `� I ZZ� I L DATE:� I/ 2. APPI�OVED AS TO FORM: CITY ATTORNEY CITY OF DENTON TEXAS , � /� � EXHIBIT A TO EQUIPMENT LEASE PURCHASE AGREEMENT LEASE PAYMENT SCHEDULE LESSOR: De Lage Landen Public Finance LLC LESSEE: City of Denton LEASE NUMBER: PUB 11400 LEASE COMMENCEMENT DATE: August 17, 2012 Date Loan 08/17/2012 1 08/17/2012 2 09/17/2012 3 10/17/2012 Grand Totals 'ayment Interest 0.00 0.00 89,065.84 0.00 89,065.84 0.00 89,065.84 0.00 Purchase Principal Balance Price 0.00 267,197.52 0.00 89,065.84 178,131.68 181, 694.31 89,065.84 89,065.84 90,847.16 89,065.84 0.00 0.00 267,197.52 0.00 267,197.52 LESSEE ACKNOWLEDGES THAT THE AMOUNT FINANCED BY LESSOR IS $259,762.68* AND THAT SUCH AMOUNT IS TI-IE ISSUE PRICE FOR FEDERAL INCOME TAX PURPOSES. THE DIFFERENCE BETWEEN 'I'f� PRINCIPAL AMOUNT (EQUIPMENT COST) IN THIS SCHEDiJLE AND TI� ISSUE PRICE IS ORIGINAL ISSLTE DISCOiJNT ("OID"), AS DEFINED IN'IT3E INTERNAL REVENLTE CODE. TI3E I'IELD FOR THIS SCHEDULE FOR FEDERAL INCOME TAX PURPOSES IS 2.890%*. SUCH ISSUE PRICE AND I'IELD WILL BE STATED IN THE APPLICABLE IltS FORM 8038-G. THE PROMOTIONAL AMORTIZATION TABLE (INCLUDING THE EQUIPMENT COST, THE PROMOTIONAL INTEREST RATE OF 0%, THE PAYMENT DATES AND THE PAYMENT AMOUNTS) SHALL REMAIN THE SAME AS DETAILED ABOVE. THE TWO FIGURES NOTED WITH AN * ABOVE (AMOUNT FINAIVCED BY LESSOR AND THE YIELD FOR FEDERAL INCOME TAX PURPOSES) MAY IVEED TO BE REVISED PRIOR TO CLOSING. IF SUCH REVISIONS ARE DEEMED NECESSARY 8Y LESSOR, LESSEE AND LESSOR AGREE THAT A REVFSED VERSIOlV OF THIS EXNIBIT A REFLECTING THESE CHANGES WILL 8E EXECUTED PRIOR TO CLOSING. APPROVED: City of Denton SIGNATURE: ���" SIGNED BY: �EO�GE C�. L"f//�7�',QEL.L— EXHIBIT B Quantity EQUIPMENT LEQSE PURCHASE AGREEMENT EQUIPMENI' DESCRIPTION Description/Serial No./Model No. Location See Alexander Open Systems, Inc. Quotation No: TQ001598 dated 7/19/2012 w Legal Name of Les i of D w Name of Lessor DE LAGE LANDE PUBLIC FINANCE LLC x � � Signalure 7...���9 �� z Lessor Signalure Dale ZL uy,, Pdnt Name l--/ ��JE' C_ ,�fl�'I/��J �L L � � �? o Print Name y � /�J y rne �����er, 6�nt«r,�min �i o w Title �1� /'�'������ w � J � Lease Number PUB 11400 a (LFASE MUST BE SIGNED BY AUTHORIZED OFFICIAL OF LESSEE) Q r Page � ol � OO 2010 All Aights Heserved. Prinled in ihe U.S.A. 10PFDOC170v111/10 Alexander Open Systems, Inc. Addison 15851 North Dallas Parkway #10Q0 Addison, TX 750D1 Phone: 972-763-8900 Fax: 972-763-8910 Kansas Citv 12851 Foste� St Overland Park, KS 66213 Phane: 973-307-2300 Fax: 913-307-2380 Please vfsit www.aos5.com for a complete listing of all service areas QUOTE T0: SHIP TO: CITY OF DENTON � CITY OF DENTON 601 E HICKORY 601 E HICKORY SUITE A SUITE A DENTON,TX 76205-4304 DENTON,TX 78205-4304 Phane: (940) 349-8585 Fax: QUOTATION Thank you for the opportunity to be of service. - QUANTITY DESCRIPTION I AVAMAR 1.00 EMCAvamar 1 EMCAvamar Gen4 Rack 1 EMC 40U Rack-BO Power Cord US 2 EMC 6 Node Long Cable Bundle for External Routing 2 EMC 19 Node 40U Rack Internal Cat 6 Cabie Bundle 1 EMC Avamar Gen4 Internal Comm Rall Kit 2 Avamar Gen4 Internal Comm Module 16 EMC Avamar 1 TB Increment Capaciiy Lfcense 16 EMC Data ProtectionAdvisorforAvamar 1TB Capacity 1 EMCAvamar Desktop-Laptop 1T6 Incr Capacity License 1 Avamar Extended Retenflon 1 EMCAvamar Gen4 LargeACC Node (Fld Inst) 4 EMC Avamar Gen4 7.8T8 Stg Node (Mfg Inst) 1 Avamar Gen4 Ut(Ilry Node (Mfg Inst) 1 Avamar Gen4 Media Access Node (Fld Inst) 52 EMC Disk Retention Uplift 2 Yr-Avamar EMC SERVICES 1.00 EMC Professional Services 1 EMC Data Store Multi-Node Base IMP 1 EMC DPA Basic Quickstart Service 1 Avamar Basic NDMP Quickstart 1 EMC Avamar DS Install for Multi Node 1 EMC BRS Sal Architect 4 Hours QS 1 EMC Program Managementfor BRS Qulckstart 1 EMC IMP FOR AVAMAR EXT RETENTION 1 EMC INSTALL FOR AVAMAR EXT RETENTION MAINTENANCE 1.00 TRAINING 1.00 EMC Hardware & Software Support 1 EMC Enhanced Software Support - 36 Months 1 EMC Premium Hardware Support - Warr Upg (ANDL) - 24 Months EMC Training 1 EMCAvamarAdministrationTrainingValuePak 1 AvamarAdministration Video UaluePak � QUOTATION Quote No.: T4001598 Customer ID: DENTO-001 Date:: 7/19/2012 Sales Rep: TERESAP Designer. KEVINCL TEXAS RIDER TO EQUIPMENT LEASE PURCHASE AGREEMENT This Rider to that certain Equipment Lease Purchase Agreement (together with all Exhibits and this Ritler, the "AgreemenY') dated as of August 17 , 20 12 , between �E LAGE LANDEN PUBLIC FINANCE LLC (together with its successors and assigns, "Lessor"), and City of Denton (together with its successors and assigns, "Lessee"), is incorporated in and is hereby made a part of the Agreement. Lessor and Lessee hereby agree that capitalized terms used herein and not otherwise defined herein shall have the terms assigned to such terms in the Agreement and that the following changes and additions are herehy made to the Agreement: 1. The definition of Lease Term in the Agreement is hereby amended by tleleting the existing definition and inserting the foliowing definition in lieu thereof: "Lease Term" means, the Original Term and all Renewal Terms, but ending on the occurrence of the earliest event specified in Section 3.02, provided that no Lease Term shall exceetl 25 years. 2. Section 3.03 of the Lease is deleted and the following Seclion 3.03 is inserted in lieu thereof: Section 3.03. Continuation of Lease Term. The tlecision whether or not to budget or appropriate funds or to extend this Agreement for any Renewal Term is solely within the discretion of the then-current governing hody of Lessee. 3. Section 11.01 of the Lease is deleted and the following Section 11.01 is inserted in lieu thereof: 3ection 11.01. pssignment by Lessor. Lessor's interest in, to and under this Agreement and the Equipment may, without notice to or the consent of Lessee, be assigned and reassigned in whole (but not in part) by Lessor. Lessee hereby appoints Municipal Registrar Services (the "Registrar") as its agent for the purpose of maintaining a writ- ten record of each such assignment in form necessary to comply with Section 149(a) of the Code. No such assignment shall be binding on Lessee until the Registrar has received written notice from Lessor of the name and address of the assignee. Lessee agrees to execute all documents, including chattel mortgages orfinancing statements that may be reasonably requested by Lessor or any assignee to protect its interest in the Equipment and in this Agreement. Lessee shall not have the right to and shall not assert against any assignee any claim, counterclaim, defense, set-off or other right Lessee may from time to time have against Lessor. Except as specifically set forth in this Rider, all terms and conditions contained in the Agreement remain in full force antl effect and are hereby ratified and confirmetl. Legal Name of Lesse City of Dento Signa�ure e �� Print Name `� � U�TE ( v �f�!�1 l��J�ZL^ Title �� � , ' / �/" � � � (Seap Attest Tltle Date Name of Lessor �E LAGE LANDEN PUBLIC FINANCE LLC LessorSignature � Dale g�. PrinY Name ��n, �►Rknn�� Title Manager, Cor�ract Administ��,+; Lease Number PUB 11400 002009 All Righls fleserved. Prinled in Ihe U.S.A. 09PFDOC112 4/09 N r � 0 c LL a. a� 0 TAX DESIGNATIONS AND COVENANTS 1. The covenants and designations hereinafter set forth are intentletl to be, antl hereby are, incorporatetl into the Equipment Lease Purohase Agreement, tlated Auqust 17 , 20 �2 (the "AgreemenY'), between De Lage Lantlen Public finance LLC ("Lessor") antl City of Denton ("Lessee"), and except as otherwise defined herein, all terms definetl in the Agreement shall have the same meaning herein as in the Agreement. The Commencement Date of the Agreement is or will be in the calendaryear 20 12 (the "Issuance Year"). Bank Qualification. Lessee initial here if this provision is applicable: — Lessee initial here if this provision is NOT applicable: (a) Lessee hereby tlesignates the Agreement as a"qualified tax-exempt obligation" as defined in Section 265(b)(3)(B) of the Cotle. The aggregate face amount of all tax-exempt obligations (excluding private activity bonds other than qualified 501(c)(3)bonds) issuetl or to be issuetl by Lessee and all subordinate entities thereof tluring the Issuance Year, inclutling the Agreement, is not reasonably expected to exceetl $10,000,000. (b) Lessee hereby covenants that Lessee and all subordinate entities thereof will not issue in excess of $10,000,000 of "qualified tax-exempt obligations" (inclutling the Agreement but excluding private activity bonds other than qualified 501(c)(3)bontls) during the Issuance Year without first obtaining an opinion of nationally recognized counsel in the area of tax-exempt obligations of state and local governments acceptable to Lessor that the designation of the Agreement as a"qualifietl tax-exempt obligation" will not be adversely affected. Small Issue Arbitrage Rebate Exception. Lessee initial here ii this provision is applicable: — Lessee initial here if this provision is NOT applicable: (a) Lessee represents and warrants that it is a governmental unit untler the laws of the State with general taxing powers; the Agreement is not a private activity bond as defined in Section 141 of the Cotle; 95% or more of the net proceetls of the Agreement will be used for local governmental activities of Lessee; and the aggregate face amount of all tax-exempt ohligations (other than private activity bonds) issued by the Lessee and all subortlinate entities thereof tluring the Issuance Year is not reasonably expectetl to exceetl $5,OOO,U00. (b) Lessee hereby covenants that Lessee antl all subortlinate entities thereof will not issue in excess of $5,00o,000 of tax-exempt bonds (including the Agreement but exclutling private activity hontls) tluring the Issuance Year without first obtaining an opinion of nationally recognizetl counsel in the area of tax- exempt municipal obligations acceptable to Lessor that the exclutlability of the interest on the Agreement from gross income for fetleral tax purposes will not be ativersely affectetl. (SEAL) CERTIFICATE OF CLERK OR SECRETARY OF LESSEE 1,1he undersigned, do hereby certify that (i) the foregoing Tax Designalions and Covenanfs were adopted and approved by action of ihe governing body of Lessee af a meeting duly called, �, regularly convened and allended lhroughout by the requisile majorify of fhe members thereof, (ii) the officer of Lessee who executed the foregoing Tax Designation and Covenants on behalf of ? Lessee and whose genuine signature appears thereon is the duly qualified and acting officer of Lessee as s�ated beneath his or her signature, and (iii) said officer has been aulhorized to execute o the for 'ng Tax Designations and Covenants on behalf of LesSee. o 0 LL d SIGNATURE � TITLE DATE a 17 All Righfs Reserved. Prinled in lhe U.S.A. 07PFD00051v4 3111 De Lage Landen Public Finance LLC 1111 Old Eagle School Road Wayne, PA 19087 Ladies and Gentlemen: Re: Equipment Lease Purchase Agreement datetl as of August 17 Puplic Finance LLC, as Lessor, and City of Denton ACCEPTANCE CERTIFICATE , 20 �Z , between De Lage Lantlen , as Lessee. In accortlance with the Equipment Lease Purchase Agreement (the "AgreemenY'), the untlersigned Lessee hereby certifies and represents to, and agrees with Lessor as follows: 1. All of the Equipment (as such term is defined in the Agreement) has been deliveretl, installetl and accepted on the date hereof. 2. Lessee has conducted such inspection and/or testing of the Equipment as it deems necessary and appropriate and hereby acknowletlges that it accepts the Equipment for all purposes. 3. Lessee is currently maintaining the insurance coverage requiretl by Section 7.02 of the Agreement. 4. No event or contlition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default (as tlefinetl in the Agreement) exists at the date hereof. (SEAL) Lessee City of D nton � W Si natur Date 'a r� } �,° 9 �--�_7 � ! ��- o Wz PrintName 5 � �`° C��G-� �. ��t,�bEZL- ° y L�L Title /�i% J1/l�- r�� � C� / �� /�i o 002009 All Nighls Beserved. Prinled in lhe U.S.A. 07PFD00052v1 3l09 De Lage Landen Public Finance LLC ❑ Check here if your billing or Equipment Location has changed or is incorrect. Please note changes on the reveres sitle. Payment sent without a copy of this invoice may be subject to a tlelay in processing. n Please do not sentl correspondence to this atltlress. ➢ Make check payable to: Ue Lage Landen Public Finance LLC REF# PUB11400 LOCKBOX PO BOX 41602 PHILADELPHIA, PA 19101 INVOICE CUSTOMER SERVICE 800-935-9439 INVOICE #: 0�2020�2 REFERENCE#: Pus��aoo ��ST�MER #: 2005446A DUE DATE: 08�17�2o�z TOTAL DUE: $89�065.84 INVOICE DATE INVOICE # REFERENCE # CUSTOMER 07/20/2012 07202012 PUB11400 2005446A P.D. NUMBER ' EQUIPMENT DESCRIPTION SEE BELOW EQUIPMENT LOCATION FOR PROPER CREDIT, PLEASE SUBMIT A COPY OF THIS INVOICE WITH PAYMENT. 002011 All Pighls Reserved. Printed in the U.S.A. 11PFDOC193v1 6/11 s M C7 T c.i 0 G LL d T T BILLING INFORMATION PLEASE COMPLETE THIS FORM AND RETURN WITH DOCUMENTS In order for De Lage Landen Public Finance LLC to properly bill and credit your account, it is necessary that you complete this form and return it with the signetl tlocuments. Billing Name: Billing Address: Attention: (Name of intlividual who will process payments) Telephone Number: Email Address: FEDERAL ID#: Primary Contact Name: _ Primary Contact Number: Insurance Agent: _ Policy Number: — Telephone Number: Fax Number: — This tarm eompleted 6y: Contact Name: Title: Contact Address: Contact Telephone Number: Email Address: INSURANCE INFORMATION (Name and Title) CONTACT INFORMATION FOR 8038 FILINGS 02012 All Righls Reserved. Prinled in Ihe U.S.A. OBPFD00086v2 7l12 N 7 {O m 0 � 0 c � a � 0 Form 8�38-G �nformatlon Reiurn for Tex-Exempt Governmental Obllgatlons ➢ Under lirtemd Revenue Code S�ction 749(e) (Rev. May 2010) ➢ See sepsmte Inetructions. Deparimanl of Ihe Treasury Caution: Jf ihe issue price is unde� $100,000, Use Form 8038-GC In�ernal Revenua Service �Y ' Reporting Authority b�01 `�'�'ic�Cory S�< (or P.O. box if mail is not 6 City, town, or po�sZO5 tate and ZIP code Denton, i x 7 Name of Issue Eauioment Lease Purchase Aai ta streei Room/SUile OMB No. 1545-0720 Return, check here ➢ ❑ 4 part number r IRS Use 6 Date of iss 8 CUSIP Numb 9 Name and title of oificer or legal representative whom the IRS may call for more informalion Telephone number of officer or le Type of Issue (check applicable box(es) and enter the issue price) See instructions d attach schedu 11 ❑ Education ...................................................................... ... ................... 17 72 ❑ Health and hospital .............................................................. .......... ..................... 12 13 ❑ Transportation ................................................................ ............ ..........,..., 13 14 ❑ Public safety ...................................................................... ............ ........... 1 15 ❑ Environment(including sewage bonds) ...................................................... .............. .......... 16 ❑ Housing ........................................................... ........,. .. ........... .... 16 17 ❑ Utilities ......................................................... ................. ... ........... 17 78 ❑ Oiher. Describe ➢ ............................................. ....... ............ ..., ............ 78 18 If obligations are TANs or RANs, check box i9a ➢ ❑ If obligaiions ar ANs, ch box b . . . . . . . . . . . . . . . . . . . . . . ➢ ❑ 20 If obligations are in ihe form of a lease or installment sale, check box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ➢ � D�cription of Obligations (Compl for the entire Iss for ich this for is being filed) (c) Sta[ed redemp on (d) Weighied (a) Final Matudty date (b) Issue Price price at maturiry average maWriry 21 $267,197.52 vears 0.00 Use of Proceeds of ond Issue (includin nde 'ters' discoun 22 Proceeds usedforaccruedinterest .................. ......... .............. ....... .............. ................. 22 2:9 Issue price of entire Issue (enter amount from line , colum b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Z4 Proceeds used for bond issuance cosis (includi unde iters' ' count) .. ..... 25 Proceeds usedforcreditenhancement .... .............. ... ........ ... .... 25 26 Proceeds allocated to reasonably require reserve or repiacement . . . . . . . . . . . . 26 27 Proceeds used to currently refund pri issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 28 Procseds used to advance refund prior is es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Total(addlines 24through 28) ............. ............... ... ............... ....... .............. 29 30 Nonrefunding proceed of th ' sue (subiract line from line 23 an ter ount here) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 ription of Re ded Bonde mple his part ly for refunding bonds) 31 Enter the remaining ighted average mat ' of the bonds be currently refu ed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ➢ 32 Enter the remaini weighted age maturity oi onds to be vance refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ➢ 33 Enter the last date o hich the r n d bonds will be ca (MM/DD YW) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . ➢ 34 Enterthe date(s)the ret ded bonds rei ed (MMlDD/YYY ...... .... ............................................ ➢ representative ,197.52 (e) Yeld years years 95 En e am of ihe state v me cap allo te o the issue under secti 141(b)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 36 nter the amount o ross procee invested or to be inves a guar teed Investment contract (GIC) (see instructions) 36e b Enter the final maf y date of the GI ➢ 37 Poo fi cin : a Proceeds of this is e that are to used to make loans to other governmental units 37a b If t s issue is a loan ma e procee of another ta exempt issue, check box ➢❑ and enter the name of the is and the date of the issue ➢ 8 If the issuer has designated the issue under ectio 65 (3)(B)(i)(111) (small issuer exception), check box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . ➢ ❑ 3 If the issuer has elected to a a penalty in lie i of arb rage rebate, check box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . ➢ ❑ 40 I entified a heda . check hox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . ➢ ❑ Under the Ities of p rjury, I d Signature are true, orrec , mplete. 1 8nd perso at I have authorized a Consent ➢ Preparer's ➢ Peld signature P��� Firm's name (or USe �n�1/ Yaurs if self-employed), ➢ address, and ZIP code For Privacy Act and Paperwork Reduction ihat I have examined this return and accompanying schedules and statements, and to the best ot my Knowletlge and deuer, tney � declare that I consent to the IRS's disc;psure of ihe isuer's return information, as necessary to process this return, to the representailve Date Daie ➢ Type or print name and title Check If self-employed O EIN Phone no. Preparer's SSN or PTIN Act Notice, aee eeparate inatructions. Cat. No. 63773S Form 8098-0 (Rev. 5-2010) 02010 All Righls Reserved. Printed in Ihe U.S.A. 08PFDOCOBSV2 8/10 Instructions for Form 8038-G � Department of the Treasury Internal Revenue Service (Rev. May 2010) Information Return for Tax-Exempt Governmental Obligations Section references are to the Internal Revenue Code unless otherwise noted. General Instructions Purpose of Form Form 8038-G is used by issuers of tax-exempt governmental obligations to provide the IRS with the information required by section 149(e) and to monitor the requirements of sections 141 through 150. Who Must File IF the issue price THEN, for tax-exempt (line 21, column (b)) governmental is... obligations issued after December 31, 1986, issuers must file... $100,000 or more A separate Form 8038-G for each issue Less than $100,000 Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales When To File File Form 8038-G on or before the 15th day of the 2nd calendar month after the close of the calendar quarter in which the bond is issued. Form 8038-G may not be filed before the issue date and must be completed based on the facts as of the issue date. Late filing. An issuer may be granted an extension of time to file Form 8038-G under Section 3 of Rev. Proc. 2002-48, 2002-37 I.R.B. 531, if it is determined that the failure to file on time is not due to willful neglect. Enter at the top of the form "Request for Relief under Section 3 of Rev. Proc. 2002-48" and attach a letter explaining why Form 8038-G was not submitted to the IRS on time. Also indicate whether the bond issue in question is under examination by the IRS. Do not submit copies of the trust indenture or other bond documents. See Where To File below. Where To File File Form 8038-G, and any attachments, with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201. Private delivery services. You can use certain private delivery services designated by the IRS to meet the "timely mailing as timely filing/paying" rule for tax returns and payments. These private delivery services include only the following: • DHL Express (DHL): DHL Same Day Service. • Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. • United Parcel Service (UPS): UPS Next Day Air, UPS Next �ay Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express. The private delivery service can tell you how to get written proof of the mailing date. Other Forms That May Be Required For rebating arbitrage (or paying a penalty in lieu of arbitrage rebate) to the Federal government, use Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate. For private activity bonds, use Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues. For build America bonds (Direct Pay), build America bonds (Tax Credit) and recovery zone economic development bonds, complete Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds. For qualified forestry conservation bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, qualified school construction bonds, clean renewable energy bonds, Midwestern tax credit bonds, and all other qualified tax credit bonds (except build America bonds), file Form 8038-TC, Information Return for Tax Credit Bonds and Specified Tax Credit Bonds. Rounding to Whole Dollars You may show amounts on this return as whole dollars. To do so, drop amounts less than 50 cents and increase amounts from 50 cents through 99 cents to the next higher dollar. Questions on Filing Form 8038-G For specific questions on how to file Form 8038-G send an email to the IRS at TaxExemptBondQuestions C�?irs.gov and put "Form 8038-G Question" in the subject line. In the email include a Cat. No. 63774D description of your question, a return email address, the name of a contact person, and a telephone number. Definitions Tax-exempt obligation. This is any obligation, including a bond, installment purchase agreement, or financial lease, on which the interest is excluded from income under section 103. Tax-exempt governmental obligation. A tax-exempt obligation that is not a private activity bond (see below) is a tax-exempt governmental obligation. This includes a bond issued by a qualified volunteer fire department under section 150(e). Private activity 6ond. This includes an obligation issued as part of an issue in which: • More than 10% of the proceeds are to be used for any private activity business use, and • More than 10% of the payment of principal or interest of the issue is either (a) secured by an interest in property to be used for a private business use (or payments for such property) or (b) to be derived from payments for property (or borrowed money) used for a private business use. It also includes a bond, the proceeds of which (a) are to be used to make or finance loans (other than loans described in section 141(c)(2)) to persons other than governmental units and (b) exceeds the lesser of 5% of the proceeds or $5 million. Issue price. The issue price of obligations is generally determined under Regulations section 1.148-1(bj. Thus, when issued for cash, the issue price is the first price at which a substantial amount of the obligations are sold to the public. To determine the issue price of an obligation issued for property, see sections 1273 and 1274 and the related regulations. Issue. Generally, obligations are treated as part of the same issue only if they are issued by the same issuer, on the same date, and as part of a single transaction, or a series of related transactions. However, obligations issued during the same calendar year (a) under a loan agreement under which amounts are to be advanced periodically (a "draw-down loan") or (b) with a term not exceeding 270 days, may be treated as part of the same issue if the obligations are equally and ratably secured under a single indenture or loan agreement and are issued under a cornmon financing arrangement (for example, under the same official statement periodically updated to reflect changing factual circumstances). Also, for obligations issued under a draw-down loan that meets the requirements of the preceding sentence, obligations issued during different calendar years may be treated as part of the same issue if all of the amounts to be advanced under the draw-down loan are reasonably expected to be advanced within 3 years of the date of issue of the first obligation. Likewise, obligations (other than private activity bonds) issued under a single agreement that is in the form of a lease or instaliment sale may be treated as part of the same issue if all of the property covered by that agreement is reasonably expected to be delivered within 3 years of the date of issue of the first obligation. Arbitrage rebate. Generally, interest on a state or local bond is not tax-exempt unless the issuer of the bond rebates to the United States arbitrage profits earned from investing proceeds of the bond in higher yielding nonpurpose investments. See section 148(f). Construction issue. This is an issue of tax-exempt bonds that meets both of the following conditions: 1. At least 75% of the available construction proceeds are to be used for construction expenditures with respect to property to be owned by a governmental unit or a 501(c)(3) organization, and 2. All the bonds that are part of the issue are qualified 501(c)(3) bonds, bonds that are not private activity bonds, or private activity bonds issued to finance property to be owned by a governmental unit or a 501(c)(3) organization. In lieu of rebating any arbitrage that may be owed to the United States, the issuer of a construction issue rnay make an irrevocable election to pay a penalty. The penalty is equal to 1�/z% of the amount of construction proceeds that do not meet certain spending requirements. See section 148(f)(4)(C) and the Instructions for Form 8038-T. Specific Instructions Part I—Reporting Authority Amended return. An issuer may file an amended return to change or add to the information reported on a previously filed return for the same date of issue. If you are filing to correct errors or change a previously filed return, check the Amended Return box in the heading of the form. The amended return must provide all the information reported on the original return, in addition to the new or corrected information. Attach an explanation of the reason for the amended return and write across the top, "Amended Return Explanation." Line 1. The issuer's name is the name of the entity issuing the obligations, not the name of the entity receiving the benefit of the financing. For a lease or installment sale, the issuer is the lessee or the purchaser. Line 2. An issuer that does not have an employer identification number (EIN) should apply for one on Form SS-4, Application for Employer ldentification Number. This form may be obtained at Social Security Administration offices or by calling 1-800-TAX-FORM (1-800-829-3676). You can also get this form on the IRS website at www.irs.gov. You may receive an EIN by telephone by following the instructions for Form SS-4. Line 4. This line is for IRS use only. Do not make any entries in this box. Line 6. The date of issue is generally the date on which the issuer physically exchanges the bonds that are part of the issue for the underwriter's (or other purchaser's) funds. For a lease or installment sale, enter the date interest starts to accrue. Line 7. If there is no name of the issue, please provide other identification of the issue. Line S. Enter the CUSIP (Committee of Uniform Securities Identification Procedure) number of the bond with the latest maturity. If the issue does not have a CUSIP number, write "None." Lines 9 and 10. Enter the name, title, and telephone number of the officer of the issuer whom the IRS may call for more information. If the issuer wishes to designate a person other than an officer of the issuer (including a legal representative or paid preparer) whom the IRS may call for more information with respect to this return, enter the name, title, and telephone number of such person here. Note. By authorizing a person other than an authorized officer of the issuer to communicate with the IRS and whom the IRS may call for more information with respect to this return, the issuer authorizes the IRS to communicate directly with the individual listed in line 9 and consents to the disclosure of the issuer's return information to that individual, as necessary, in order to process this return. Part II—Type of Issue �Eleciions referred to rn Part !1 are � made on the original bond documents, not on fhis form. Identify the type of obligations issued by entering the corresponding issue price (see Issue price under Definitions on page 1). Attach a schedule listing names and EINs of organizations that are to use proceeds of these obligations if different from those of the issuer, include a brief summary of the use and indicate whether or not such user is a governmental or nongovernmental entity. -2- Line 18. Check the box on this line only if lines 11 through 17 do not apply. Enter a description of the issue in the space provided. Line 19. If the obligations are short-term tax anticipation notes or warrants (TANs) or short-term revenue anticipation notes or warrants (RANs), check box 19a. If the obligations are short-term bond anticipation notes (BANs), issued with the expectation that they will be refunded with the proceeds of long-term bonds at some future date, check box 19b. Do not check both boxes. Line 20. Check this box if property other than cash is exchanged for the obligation, for example, acquiring a police car, a fire truck, or telephone equipment through a series of monthly payments. (This type of obligation is sometimes referred to as a "municipal lease.") Also check this box if real property is directly acquired in exchange for an obligation to make periodic payments of interest and principal. Do not check this box if the proceeds of the obligation are received in the form of cash, even if the term "lease" is used in the title of the issue. Part III—Description of Obligations Line 21. For column (a), the final maturity date is the last date the issuer must redeem the entire issue. For column (b), see Issue price under Definitions on page 1. For column (c), the stated redemption price at maturity of the entire issue is the sum of the stated redemption prices at maturity of each bond issued as part of the issue. For a lease or installment sale, write "N/A" in column (c). For column (d), the weighted average maturity is the sum of the products of the issue price of each maturity and the number of years to maturity (determined separately for each maturity and by taking into account mandatory redemptions), divided by the issue price of the entire issue (from line 21, column (b)). For a lease or installment sale, enter instead the total number of years the lease or installment sale will be outstanding. For column (e), the yield, as defined in section 148(h), is the discount rate that, when used to compute the present value of all payments of principal and interest to be paid on the obligation, produces an amount equal to the purchase price, including accrued interest. See Regulations section 1.148-4 for specific rules to compute the yield on an issue. If the issue is a variable rate issue, write "VR" as the yield of the issue. For other than variable rate issues, carry the yield out to four decimal places (for example, 5.3125%). If the issue is a lease or installment sale, enter the effective rate of interest being paid. Part IV—Uses of Proceeds of Bond Issue For a lease or installment sale, write "N/A" in the space to the right of the title for Part IV. Line 22. Enter the amount of proceeds that will be used to pay interest from the date the bonds are dated to the date of issue. Line 24. Enter the amount of the proceeds that will be used to pay bond issuance costs, including fees for trustees and bond counsel. If no bond proceeds will be used to pay bond issuance costs, enter zero. Do not leave this line blank. Line 25. Enter the amount of the proceeds that will be used to pay fees for credit enhancement that are taken into account in determining the yield on the issue for purposes of section 148(h) (for example, bond insurance premiums and certain fees for letters of credit). Line 26. Enter the amount of proceeds that will be allocated to such a fund. Line 27. Enter the amount of the proceeds that will be used to pay principal, interest, or call premium on any other issue of bonds within 90 days of the date of issue. Line 28. Enter the amount of the proceeds that will be used to pay principal, interest, or call premium on any other issue of bonds after 90 days of the date of issue, including proceeds that will be used to fund an escrow account for this purpose. Part V—Description of Refunded Bonds Complete this part only if the bonds are to be used to refund a prior issue of tax-exempt bonds. For a lease or installment sale, write "N/A" in the space to the right of the title for Part V. Lines 31 and 32. The remaining weighted average maturity is determined without regard to the refunding. The weighted average maturity is determined in the same manner as on line 21, column (d). Line 34, If more than a single issue of bonds will be refunded, enter the date of issue of each issue. Enter the date in an MM/DD/YYYY format. Part VI—Miscellaneous Line 35. An allocation of volume cap is required if the nonqualified amount with respect to the issue exceeds $15 million but does not exceed the amount which would cause the issue to be private activity bonds. Line 36. If any portion of the gross proceeds of the issue are or will be invested in a guaranteed investment contract (GIC), as defined in Regulations section 1.148-1(b), enter the amount of the gross proceeds so invested, as well as the final maturity date of the GIC. Line 37a. Enter the amount of this issue used to fund a loan to another governmental unit, the interest of which is tax-exempt. Line 39. Check this box if the issue is a construction issue and an irrevocable election to pay a penalty in lieu of arbitrage rebate has been made on or before the date the bonds were issued. The penalty is payable with a Form 8038-T for each 6-month period after the date the bonds are issued. Do not make any payment of penalty in lieu of arbitrage rebate with this form. See Rev. Proc. 92-22, 1992-1 C.B. 736 for rules regarding the "election document." Line 40. Check this box if the issuer identified a hedge on its books and records in accordance with Regulations sections 1.148-4(h)(2)(viii) and 1.148-4(h)(5). These regulations permit an issuer of tax-exempt bonds to identify a hedge for it to be included in yield calculations for computing arbitrage. Signature and Consent An authorized officer of the issuer must sign Form 8038-G and any applicable certification. Also print the name and title of the person signing Form 8038-G. The authorized representative of the issuer signing this form must have the authority to consent to the disclosure of the issuer's return information, as necessary to process this return, to the person(s) that have been designated in Form 8038-G. Note. If authority is granted in line 9 for the IRS to communicate with a person other than an officer of the issuer, by signing this form, the issuer's authorized representative consents to the disclosure of the issuer's return information, as necessary to process this return, to such person. Paid Preparer If an authorized officer of the issuer filled in this return, the paid preparer's space should remain blank. Anyone who prepares the return but does not charge �� the organization should not sign the return. Certain others who prepare the return should not sign. For example, a regular, full-time employee of the issuer, such as a clerk, secretary, etc., should not sign. Generally, anyone who is paid to prepare a return must sign it and fill in the other blanks in the Paid Preparer's Use Onlyarea of the return. The paid preparer must: • Sign the return in the space provided for the preparer's signature, • Enter the preparer information, and • Give a copy of the return to the issuer. Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws. Section 6109 requires paid preparers to provide their identifying number. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form varies depending on individual circumstances. The estimated average time is: Learning about the law or 2 hr., 41 min. theform .... ....... Preparing, copying, 3 hr., 3 min. assemhling, and sending the form to the IRS ...... If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can write to the Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:M:P:T:T:SP, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the form to this office. Instead, see Where To File on page 1.