2008/02/13 Council Agenda Packet

Lease or ii) if applicable, the amounts as shown on the Payment Schedule, plus applicable taxes ("Rent'). The first rental payment is due on the Rental Commencement Date, and each remaining periodic rental payment is due on the same day of each payment period thereafter for the initial term of lease.All payments shall be delivered to Lessor at its address indicated In this Lease or as otherwise directed by Lessor in writing. Additionally, Lessee shall pay, as Rent; daily interim rent, on all Equipment subject to this Lease, due and payable monthly in advance, for the period from the date of delivery of Equipment (or any part thereof) to and including the day immediately preceding the Rental Commencement Date. The daily rent will be calculated on a 360 day year. No portion of any rental payments shall be deemed to constitute payment for any equity Interest in the Equipment. If any payment due under this Lease is not paid within 5 days of its due date, Lessee shall pay Lessor a late charge not to exceed 10% of each late payment(or such lesser rate as is the maximum rate allowed by applicable law). Lessee authorizes Lessor to insert in this Lease as "Tax on Rental Payment" and 'Total Rental Payment" the appropriate amounts when same are determined by Lessor. 5.EXCESS USAGE AND SUPPLEMENTAL RENTALS(Applicable to Turf Care and Maintenance Equipment Only): At the end of the Initial Term of Leasg, Lessee shall pay as Rent to Lessor$5.00 per hour on each item of Equipment for each hour of use In excess off,4CO hours per year. Lessee shall pay such supplemental rental payment within ten(10) days of Lessor's written demand. The hours of use of an item of Equipment shall be determined by the hour meter attached to said item of Equipment. If any such hour meter becomes inoperable or inaccurate, Lessee shall immediately repair or replace same, and shall immediately notify Lessor in writing of such event and of the correct hours of usage of the time of Equipment during the period of time the hour meter was inoperable or inaccurate. Lessee shall promptly furnish Lessor such information as Lessor may reasonably request from time to time in order to document the hours of usage of the Equipment. 6.EQUIPMENT LOCATION; USE AND REPAIR; RETURN. Lessee will keep and use the Equipment only at the Equipment Location shown on the front of this Lease. Lessee may not move the Equipment without Lessor's prior written consent At Lessee's own cost and expense, Lessee will keep the Equipment eligible for any manufacturer's certification, in compliance with all applicable laws and in good condition, except for ordinary wear and tear. Lessee will not make any alterations, additions or replacement to the Equipment without Lessor's prior written consent All alterations, additions and replacements will become part of the Equipment and Lessor's property at no cost or expense to Lessor. Lessor may inspect the Equipment at any reasonable time. Unless Lessee purchases the Equipment in accordance with the Lease, at the end of this Lease, Lessee will immediately deliver the Equipment to Lessor in as good condition as when Lessee received it, except for ordinary wear and tear, to any place in the United States that Lessor tells Lessee. Additionally, the Lessee agrees that the Equipment being returned must meet the Standard Equipment Return Conditions as defined in this Lease. Lessee will pay all expenses of deinstalling, crating and shipping,and Lessee will insure the Equipment for its full replacement value during shipping. 7.STANDARD EQUIPMENT RETURN CONDITIONS. A.Notwithstanding anything to the contrary contained in the Lease, and in addition to the terms and conditions contained herein, Lessee shall, at Lessee's sole cost and expense, return all, but not less than all, of such Equipment to Lessor immediately upon the expiration of the Initial Term of Lease and with respect to each item of Equipment, as applicable,the following must be true: All safety equipment must be in place and meet applicable federal,state and other governmental standards. •All covers and guards must be in place with no sheet metal, plastic or cowling damage. • All parts, pieces, components and optional equipment must be present, Installed and operational. • All accessories shall be returned in proper order. •All motors shall operate smoothly without overheating and shall have good bearings and bushings. • All electronic controls shall operate per manufacturer's specifications. Controls which bypass normal operations shall be repaired at Lessee's expense. • All electrical systems shall be able to provide electrical output as specified by the manufacturer. • All batteries shall be in good, safe operating condition with no dead cells or cracked cases. Batteries shall hold a charge and provide adequate power to operate the equipment. • All Equipment shall have serviceable tires, with 50% remaining tread, retaining proper air pressure, and without repair patches. • All oil and grease seals must contain lubrication in the manufacturers designed reservoir. •All Equipment must have a relatively clean appearance. • All Equipment shall be free from excessive wear necessitating major component repair or replacement caused by lack of recommended maintenance as detailed in customer operation/maintenance manuals. • All Equipment shall be free from structural damage or bent frames. • Any usage or metering devices must not have been altered in any way. • All Equipment attachments, If any,must be in good operating condition. • All hydraulic cylinders must not be bent, nicked, gouged or leaking. B. RETURN PERFORMANCE. Each item of Equipment must be able to complete the following tests: • Operate normally in forward and reverse directions through all its speed ranges or gears. • Steer normally right and left in both forward and reverse. • Have all functions and controls work in normal manner. Page 2 of 6 ii