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HomeMy WebLinkAboutRES 362 Draft 01 1994-1996COUNTY OF HAWAII STATE OF HAWAII RESOLUTION N0. X62 96 WHEREAS, Resolution No. 71-95 of the Hawaii County Council passed on 4/5/95 authorized the Mayor to enter into a performance bond contract pursuant to Section 36-41, Hawaii Revised Statutes for an energy retrofit for the Hawaii County Building. WHEREAS, certain equipment as described in the Municipal Lease & Option Agreement is necessary in order to implement energy conservation oz alternate energy measures in the County Building as part of the performance contract. WHEREAS, the County has taken the necessary steps, including any legal bidding requirements, under applicable law to arrange for the acquisition of such equipment. NOW, THEREFORE, be it resolved by the Council of the County of Hawaii that the Mayor is authorized to enter into a Municipal Lease Agreement, a draft of which containing the general terms and conditions is attached hereto as E$hibit A, BE IT FURTHER RESOLVED, that the clerk transmit copies of this resolution to the Departments of Finance and Research and Development. Dated: Hilo, Hawaii, this 23rd day of August 1996. COU Cot I I hereby certify that the fo vote indicated to the right the County of Hawaii on ATTEST: L,.YV72~ ~~~~ COUNTY CLERK R OLL CAL L VOTE NTY COUNCIL of Hawaii tas AYES NOES AB5 Ex ty Hawaii silo , Arakaki X Easley X RESOLUTION was b the oin re Ctutds X y g g h COUNCIL f d b f d ~ Luna X e o opte y t hereo a ust 23 1996 Au DOi17Lg° X g , Osorio X Van De Car X Ray X ` Smith X / ~~' ~~ 8 0 1 0 -- ' ~,' '-~ Reference C-1317 / FC - 286 CHAIRMAN & PRESIDING OFFICER RESOLUTION NO. __ TNTRAili7CF.D RV DATE MUNICIPAL LEASE AND OPTION AGRB:c1yIEN~ [.&SSOR: LESSEE o~ . ~~~ This Munidpal r ..d. and Option Agreement (the'Agreement7 entered iom between (•~'+~• aOd ('Iasee7, abodyocepceate and polidcdulyorgan'ved aadeastingunder the 4wa o[the State of ('State"); WI'l7QFSSETH: WE~RE.4S.Isxsor desua ro lease the Equipment. u hereittafter defixd, to Lessee, and Levee droves to lease the Equipment from Lessor, subject to the terms and mnditioos o[ and [or the purpmn set forth in thu Agreement: std WFIERFAS. Lessee n authorved order the Comtitutioa std bws o[ thn Sate to cuter inm this Agrcemem (ce the purpttses set [orW herein: NOW, TEIEREFORE, for asd in comidetation of the prcmisn hereinafter owuined. the parties hereby agree as follows: ARTICLE I COVFNANCS OF LESSEE Section 1.01. Coveaams of Laaea Itstee rcprcsenu, oovemau and warrants. for the benefit of Lessor and iu sssiytees, a. follows: (a) lessee is a public body. mrporan and politic, duly organ'ved and eristing order the Corotitution of the taws o[ the State. (b) lestee will do ar Wore to be done all th'mga necessary to preserve and keep is NII force and et&a its erineace as a body corporate and politic (e) Lessee is autharvad under the Comtitutioe and laws o[ the Stale to enter inm this Agreement and the traosataion makmplated hereby and to perform all o[ its obOguiom hereunder. (d) Lessee bas been duly antharixed to aeate and deliver this Agreement under the rector and prwiriom of the radutios o[ its g~~6 iy, atuthed hereto as Exhibit A or by other appropriate o[&aal approval, and further reprmenu, covetuna and warrants thu all requ'vemeW have been tract _ad procedures have ooavred, in order to emtue the enforceability o[ the Agreement, and Lessee Ins complied wiW such public bidding requircmenn as may tx appG®ble to this Agreement rod the acgnmttw by Lessee of the Equipment thereunder. Ltssee shall reuse to be encored eo opinion o[ in counsel subsantialy in the [arm attached hercm n Exhibit E• (e) During the term o[ this Agreement, the Equipment will be rued by Ltssee only Ice the purpose o[ performing one ce more gavernmenul or proprietary [unctiom o[ lessee o~sistent with the permissible ampe of Lessee's authority attd will not be rued m a trade or bminess o[ any person or entity other than Lessee as outlined in FYYhibit C a0atfied hercm. (() During the period this Agreement is in force. Lessee will amualty provide Lessor with current fimndal aratemwu, budgets. proof o[ appropriation for the emuing fiscal year and such other fioandal information rctating to the abihry o[ Lessee to continue this Agreement as maybe reasombty requested by Lessor or in assipee. (g) The Equipment will have a useful life in the hates o[ Lratee that is aubsuntia0y in core of the Lsare Term. ARTICLE II DEFINITIONS Section 2.01. Defioftbos. Unless the mnten cleuty otherwise requires or antes otherwise defined herein, the ®pitelixed terms in this Agreement shall have the reapetxive ~~ spedficd bebw. 'Aeeeptanoe CetslGole' mean a certificate in substantially the form attached hercm u ibit F and which shall be delivered by Lessx to Lessor upon remipt and ac«ptanae o[ the EquipmeaL 'Apeeeeat' ttteam this Mtmidpal Lease and Option Agreement with in Esbibiu, whkb Esbibin arc attached hereto and inmtporated herein by reference. 'Code' teems the Internal Revenue Code of 1986, m amended. sad to the eneot applinbk, the rcgulatiom sod rulings issued thereunder. 'CometsetoeW Date' is the date when the term o[ this Agreement begun sad Lessee's obligation to pay rent accrues. which date shall be the date fast above written. •Fgeipomt• ........ the property daaibed in Exhibit D sad which is the subject of this Agreement. 'isue Tem' meam the period begiming with the Commenoemeot Date sad mntinuiog until terminated as outlinal in Section 4.01. •Purcbaas Pris• o...^ the amount set forth and ao titled in Exhibit E hercm which Lessen maYWY to Lessor m purchase the Equipment n provided under Section 11.01. - •Reatal Payeema' means the bask rcnW paymenu payable by Irnee ptmttant to Exhibit E of this Agreement. •Vcador" mean the manufacwrcr of the Equipment as weg u the agenn or dealer of the manuhaurcr. ~,XHI3TT "a" ~.•...,m..~..~ ARTICLB IB pR LEASE OF EQUH'M6Nf' ~: Seniors 3.01. lease of Eaaioeeup Leaser hereby demons, leans atsd ku m Isasee, and I.wee «nu, leases and hires from [rssor, the Equipment, in aaordaea with the provision of rho Agraeunt, to have astd to bold far the 1.... Term. ARI7CIJi lV I.FASE TERM Seniors 4.01. I.eue Terra. This Agreensem shall be in effect sad shall oemmeaoe u of the Cnmmettoemmt Date and will remain in e[Gsn throughout the Lease Term. The Lease Term will terminate upon [he lust [o otsur oL• (a) lhn exerdse by Lessx o[ the opctm to the ui Purchase Eq pmeot under Artidn XI or VI: (b) Isaaor's elation to terminate rho Agrameo[ upon a default mde Amide XIB; (e) the payment by Lessee o[ all sums required to be Paid by Lessee hercmder, or (d) the ooavrcea of ao Event of Noaappropriuioa is asoedaase with Amide VI, Seaioa 6.03. ARTTCLB V ENJOYMENT OF EQUIPMENL' Section 3.01. Ouiet Eaieryeat. lnaor hereby agrees not to interfere with Lessee's quiet use and enjoyment o[ the Equipment so long as Lessee is no[ in default hereunder. Section 3.02. Use of the saetsL I.ntee will not install. use, oPerue or maotiln the EQWpment improperly. carelessly, in viWallCa of aDy appprable law or is a manner matrcry to tht[ mnrcmp4ted by rho Agreement. Section 3.03. Rteht of Iuuedbss. During the Lease Term, the Lessor and lu oQ'ioen, empbyees arsd agents shat( have the right at all reasossable times during buinen hours to enter into and upon the ptoperry o[ the Lessor for the purpose o[ ittspesxiag the EquipstuaL Seniors 3.04. Didaiaaer of WarrtmUea LESSOR MABfS NO WARRANTY NOR REPRESFIJ'TAIION, E1THF.R EXPRESSED OR IMPIlID, AS TO THE VALUE, DESIGN, CONDITION, MERCHAMTABfITIY OR FTITIECS FOR PARITCUTAR PURPOSH OR FITNESS FOR USE OF THE EQUIPMENT, OR ANY OTHER WARRANTY WITH RESPECTTHERETO AND. AS 70 7HE LESSOR, THE LESSEE LEASES THE EQUIPMENT 'AS IS. In eo event shall the Insor be liable [or any tau a damage, inducting ioddeaul. indirect. sptsdal a onosegtswtial damage. io maoatieo with or arising out of rho Agreement a the et6steoa, furnishing, tunnaeiog or the LeaaeeY vas of asry items a Prodttas a suvioea provided [or in rho Agreement. Section 3.03. Vendor Wattauiea, Lessor may assert daima sod righu that the Icsaor may pave agaimt any Vendor of arty portion o[the Equipment. ARTICLE V[ RENTAL PAYMFN'IS Section 6.01. RessW Paeaesua to CorutYafe • Overeat E>aerrae of I.eseee. The Renal Paymenu and other amounu payable under [his Agreesssem for each budget year of Issue or portion thereof during the I.... Term shW oomGtute the rmW for surL budget yen a portion thereof sad shall be paid by Lessee for and is oonideration of the rigbt to the uu and otxatpaaey, and the omtoued quiet trac and eajoymen4 of the Equipasem by Isaaee [or and during ••~ k budget year ~ portion thereoL The parties hereto have agtsxd acct determined that surL tttW reaW is not k eaea o[ the foal fa'sr reaW value o[ the ipmeet. in making such determination. eouideration hu been given m the txau of the EgWpttteat, the uses tad purpous served by the Equipment, sad beaefiU [hercfrom the[ will aCCrlte [O the Partitl by reason 0[ Iho Agramenl and to the geoenl pnbliC ~'rcatoa of IsssaY rue of the Equipment. Iswee hereby ooveeauu to take stseh solos n m.y be oeneaaary to iadude all ReaW Paytneau sad other amtwoa dun heremdn is its amtW budget and to mate the necnsary appropriations far a0 such ReoW Paymenu sad other amosmu, subjat to Sagioe 6.03. Thu ooveoanu oo the part o[ Lessee herein mnuined shall be deemed to be sad shall be wottrued to be minoterial duties impacted by law sad it shalt be the sssioolerial duty of each sad every public ofiidal o[ Isssee to carry out sad perform the oweeann and agramenn on the part of Lessa eoouined in rho Agrcemeat. The abggation of I.nsa to make ResW Paymeaa or other paymeeu due hercundn don not ossntitum u obggatioa of Lessee for which the L.easa is obBgaled to levy a pledge any form of tantion a [or which Isuee hn levied or pledged say form of notion. The abGgatioaof Lessee to snake RrnW Payments or other paymenu hereunder dos not contitute se indebtedneu of Issaee, the Sute or any of iu poGtinl aabdiviaiou within the meaviog of soy camtitntioaal ar stuutory debt limitation a rnuiaioa Seaioa 6AL Pafsaeu of ReesW Pa.aeNt. Lessee shall promptly pay ReaW paymenn, eaittriveq from Iega0y available f~~ds.;n IawtW money o[ the United Suma of Amerin to Lector in such amouaa and oo sttsfi darn u deanibed k hereto; Provided that. it the Equipment hu not been aorcP~ by I.esue, such ReaW Paynteau shall be pyabk solely from amamts dePoaited with ao eaemw agent Setxioa 6.03. Iaterat sad Peiaded Co~M.~•s A portion o[ each ReaW Payment is paid u interest, acct the balaoa o[ aaeh ReaW Payment is paid as prindpaL Exhibit E hereto uu forth the interns r~poneat sad the ptindpd compooaat nt each RmW Payasen[ doting [he Ieaae Term. Seniaa 6.04. ReaW Paaaressts to M UamssdgioeaL TIiT/ OBLIGATIONS OF IFSSEETO MAKE RENTAL PAYMENTS, AND TO PERFORM AND OBSERVETHECOVENAMLS ANDAGRELINENTS CONTAINID HEREW,gHALLHEABSOL,UTEAND UNCONDITIONAL IN AILEVENTS WITHOUTABATEMENT, DIMINUTION, DIDUCTION, SET-OFF OR DEF7TiSE, FOR ANY REASON, EXCEPTAS PROVIDED 1N SECITON 6.05. Section 6.03. ReaW AlsateOeLL Faeept to the meat of () amounu heal iv ao eaertwr, tint or ageaq acmum to make ReaW Paytnean o[ (u) amouau received is respen of reset iaterruptioo ioaunaa or liquidated damage, Reo W Paymeau due hercmder shall be abated during avy period in which. by reason o[ material damage, deswp{on or rondematuion. there is sWxuatial iatnr&seom with the ssm and right of pouessioa by Leaax o[ the Equipment, or a material portion tpercoL The amount of abatement shall be such that the rnWtiag Renal Paymmu «prnent fair oouiderctioa for the use sad pouersion of the portion of the Equipment sot damaged. dnuoyed or ooodemaed. Suds abatement shall continue [a the period commenriag with the date of such damage. dnwnion or coodeamuioa and coding with the rntoration of the at&aed Equiprneat to a condition which will permit the afiemed Equipmem to be used subsnotially n intended. In the event of any such damage, destrudioo ar t»odemaatioa, rho Agreement shall mntiaue k full fora aW e[kn, eus:pt u set forth iv Section 11.01. Section 6.06. Trick NN Lease. This Agrament is intended to be a vipk at lease. lesaa agrees that the ReaW Paymeou and other payments provided for herein shall be an absolute set return to Lessor (ra and der o[ say eapeese, charge a set-oHs whatsoever. ARTICLE VIl TT1T.E TO EQUIPMEPfI; SECURITY LNTERFST Seniors 7.01. Title to the FaaioaeaL During [he term o[ this Agreement. title to the Equipmcnt shall vent in Lesaa, subject to Lessor's righn upon _ _vent o[ De[aWt or an Event o[ Nooappropriatioe. Seniors 7.02 Seeosit~ falerM Act security Cor its obligations hereunder Lessee grcau to lessor a security ioteret wntituting a first taco w the ~aw>.n Equipment and oo aV additions, attathmeon, ameniom nod snhrimtkn thereto. and an say proaab tAuretram. Seaim 7.03. Gar awl Faeebsaaees ' 'Vle. Infee shay promptly discharge auY Oea Pk" ' m the Equipmem other thaw those accred by lessor. ARTICLE V~ O~pq MALNTBNANCEt MODIFICATION; TA7CFS; DISURANCE AND oliffit CIIARGRS Section 8.01. Mafmtewawa of Fmieae.t b- Larr. Lena sill, at Lesa1 own ocet and eapeme, maintain, preserve acct heap tha Equipment good repair. working order and modition. It requnted try Lac, Lena wig corer inm a maiotetuna omtract [a the Equipmem with Vendor. Section BA2 Tam OtMrGoreew..wW Charm ud UtBYv r't~_- In the event that theme. pooenion ce atgnisition oI the Equipment is found w be subject to taudoo k any form (esoep[ far iomme ores o[ Lmor), goveromeot dtargn ar utility durget and eapemes, Lessee wi0 pay all such tales and charges a they acme due. Section 8.03. ProrisAn Reaardiee [uwswaer. Al in own espease Lassa shag cetrse weealry, public liability and property damage inntrnee to be carried acct maintained (coil evrdeoced by artiGnta delivered m Lerar throughout the Lase Term) in the amouna and for the mrerages set faith oa Fihibit provided that the amount olessualry and property damage inmrance stall not be kit than rho then applioble Purchase Price. All insurance proaedi from mualty loon shall be payable u hereinafter provided in this Agreement. Secion 6.04. Adwsaas. In the event Lela shall [ail m maintain the tu0 inmrooe ooverge requirod by thin Agreement or shall fir? to leap the Equipment in good repair and operating ooodition, lessor may (but shall be under no abhgatim) to porehau the required polidn of 1...,•..,.... and pay the premiums on the same or may make such repair or rcplaoemau ss are necessary soil preside for payment thereof: and all amounn so advanced therefor by Lessor shall De repaid to In, sot. together with intemt themon at the rate spedCred 6ereafmr. Seedon 8.05. MdBlotions. Without the prior ariuen moment of the lessor. the Leta shall not make coy material alterations, modiLeatiom or attaohmenn m the Equipment ARTICLE IX DAMAG$ DESTRUCTION AND CONDRMNATIONi USB OF NBT PROC1~5 Secion 9.01. Daeaag Dearwebw and Cowde~watioa. If (a) the Equipment ce coy portion thereof is destroyed (in whole ce in part) ce is damaged by Ore or other eutWry or (b) tilk t0. ar tha temporary use of the Equipment ar any pas theeeot is tatea order rho aerdsa of the power of eminent domain Lessee and Inver will vase the Net Proceeds of any i~..~» daim a atrodemoation award m be applied either to the prompt repair. rntoratao, modiGestion a replacement o[ the Equipment or, a LesaY option, m the payment k full of the Porrhase Price. Any bWnce of the Net Proceeds remaining after :ueh work a purchase has ban completed shall be Pd to Lass. For purpow o[ Amide V[Q, Section BA3, coil this Amide IX. the term 'Net Prooeedd shall mean the amomt remaining from the gran proceeds of any insurance daim or omdemnation award otter deducing all eapensea (including aaorney's tees) marred in the mllecion of each claims err awed. Section 9.02 Itumfildeaer of Net Preeceda If the Nd Proceeds are inmQ'ident to pay in full tha oust of aey repair, ratoration, modifiesuon or replacement. Inca shill either (a) oompkte the wok sod pay any oust in esass o[ the amount of Net Proceeds, ce (b) Lana shall pay to Lessor the Purchase Pri«. The amount o[ the Net Proceeds in esnen of me then applinbk Purchase prim, it arty, may be retained by Less. ARTICLB X TAX COVENANT Section IOAI. Tor: Covenant. It is the intention of the Lessee and the fence that the iateru portion of the Ra W Payman received by the Insor be and remain eumpt from federal income motion. Lessor mwoann that it will ate any cad all reasooaby action neoranry to maintain the emmpuon from federal iamme Caution o[ tha inlerest portion of the RaW Paymenn, and that it will not iomntionally perform coy art a entu ;nm any agreement or use or permit the use o[ the Equipment a any portion thereof in a manner that sha0 have the eRat of terminating the eamption from federal income taurioa oC the interest portion of the Renal Paymenn, inducting (without limitation) leasing aU or any ponion of the Equipment a mntracing to a third party for the uu or operation of all or any portico of the Equipment if entering iom stre6 lease ce mntrric would have such e[fec. ARTICLE XI OPTION TO PURCHASR Section 11A1. Poreb.ae Riahtr Casa sha0 be entitled m purdrase the Equipment: (s) upon Payment k full o[ all RmW Paymenb k aamrdaoce with ibit hereof toil all other amounn due hereunder, ce (b) Provided there is oo Ewm at Default heremda tad open wrinaa notice delivered at lent 30 days m advance, Lars may purchase the Equipment on coy renal payment date by paying w Lnsar the RaW Payment then doe. together with the Purrhasa Prig set forth in 'bit E abng with all other amounn then due 6eremda. ARTICLE XD ASSIGNMENT, SUBLEASING, WDEMNIFICATION, MORTGAGING AND SELLING Section 1201. Aastmeed or Sale br Lauer. (a) 'Ibis Agrament, and the obggatiaos o[ Lessee m mete pyman hereunder. maybe sold, assigned a otherwise dispcecd o[ in whole a in pan to one or more successors, grantor, holden, anigoees a mbanigsees by Lance. Upon any »k, digxxition, aoiytment or reasdgomen4 lasses shall be provided with a mdce o[ said anigomeat. During the term o[ tha Agrament, lessee shall each keep a mmpkre and aowram register of all such anipmenn in form oeteaavy to aompty with Seuim 119(a) oI the Code. (b) Lessor agrees m makes a0 paymenn m the asigrtee designated in the anignmea4 notwithstaodiag any claim. defence, setoff ce counterclaim whatsoever leapt aritiog from Insor's broth o[this Agrament) that Lena may from time to time haw agaimt Inver or Vendor. Lace agrees to esemte all doamenn, inducting notices of assigtment and dmttel mortgages ce finandngsmtemenn, whk6 maybe reasonably rcqunted by Lessor a aarigsa m protta in iareresu in the Equipment and k this Agramen~ (c) lessor hereby agree that Lessor may se0 or otter to sell this Agramem (i) through a oatiLare of panidpatioa program. whereby two a more -tau are seated iu the Ageemen4 the Equipment a the Ren W Paymenn; a (b) with other similar iaswmenn. agramean and obfigatiom through a pool. t. limited parmenhip, a abet entity. Section 1202 Ne Sale, Assiemeat or Sabkuiae by [.raw Thin Agreement and the interest of Lass in the F~uipmeot may not be sold, anigned or enambered by Lassa without the prior written mnseot o[ Insa. aw~rpsamran^. Seaico 1203. ReMsre asd Indaanleatbw Casasuats. To the estem permitted by the law sad ConUtmim of the Smte, Laaro shag pleat, hold harmk:s and indemnify Lessa from and agaimt r "d all liability. abtigatioas, kaea, claim and dames.- ~ +taaever, rcgndfe• oteasue eheredeaeept these raultbg Gom Lenor4 intentional a oegtigent i eapemes m eemeetion themrish, iedndiog,r imimtica, camael fees and espenas, Penalties and interest atidng out o[ a u the taWt o[ tL ring lest this Agreemeo4 the tswnenhip a[ any . . the 1?gmpmn; the aederiog, acgoisitioo, nee, npentioa cooditioo, purt~ase, delivery, njeaioo, storage a return of any item of the Equipment a any accident in eoooeaion wild the operation, use. condition, possarion, storage a return of wry item o[ the Equipment tesWting in damage b property a injury b a death b toy person. The indemaifivdon ;.sing under thin paragraph shall survive the tecmintion of this Agreement ARTICLE 307[ 6VENT3 OF DEFAULT AND RE11fl:DiFS Season 13.01. Event of De4aM. The following mntiWte 'Fume of Default' under this Agreement: C (a) failure by the lessee b pay arty Rm W Payment a other payment required b be paid hercuoda when due; a ~; . (b) Failure by the Leoee b maiauio imunnoe m the EgWpoteat is aawrdaooe with Amide VIII Section SA3 hereof a (e) failtree by the Lessee b observe and perform soy other covenant. ooaditicn a agtemeat ao in part b be observed a performed [a a period o[ 30 days aher writka nodce u given to the Leave by the Lessor. spedfyiag such Guluro and regnesdog that it be remedied; provided, however, that if the Galore stated in such nodce esanot be mrreaed within such 30-dry period, the 1®or evill not mteasaeabiy withhold fts constant b an aaension a[ sarL t®e if corrective action it instituted by the Lessee within the appliesbk period and diligently pursued until the dafaWt b eareaed: a (d) initiation by the Lance of a proceeding under any federal a state bmtruptry a iaaohmncy law seeking relief under aurh bw moeeming in indebtednar. The forcgoiag provision o[ this Seaim are subject b the provision of Amide V[, Season 6A5, hereoL Section 13.Q2 Remedks Oo Detawh. Whenever soy Etieot o[ DefaWt shW Gave aceurred and be matiauing, the Lessor shall have the right, at in sole option without soy further demand a nodce, to Wce say one a say combination o[ the [o0owing remedial steps: (a) Tcrmiwte thin Agreement and retake poasarbn of the Equipmem wherever ainmmd, wed sell a lease, subbase a make other dispaitim of the Equipment [a use over a term in a oommereia0y reasonable meaner, all [a the aawnt at Leswr, psovided that Leux shall remain directly liable fa the amowt aawlty appropriated fa the purchase a renal of the Equipment sad unpaid 6Y leave daring the atrten focal year. Lessor shall apply the oak proceeds in the following manner: FIRSTLY. to pay all proper and reasonable can and ezpemes assodated with the rmovery, repair. storage sad sob of the Egttipmeo4 iadudiog reuonble aaorneys' lees and expemec SECONDLY. b pay the Lena (7 the amount o[ all unpaid Rm W Paymmn, if soy. which are then due and owing, together with interest and 4te dtarges thereon. (o) the then applinbk Purchase Price (eking inb aeammt the payment Of put due Renal Paymmn as afaressid), Pius a Pro rata alleeation of interest. at the rate utilired to esublish the lament component [a the Ren W Payment nm due, Gam the neat preceding dw date of a Renal Payment wtil the date of payment by the buyer, sad (ui) say other amown due heremder, THIRDLY, to pay the remaindes of the oak proceeds, purchase moneys a other amouan paid by a buys of the Equipment, b the levee. ro) P~~ by appropriate men salon b enforce performance by the I.easoe o[ the appliobk mveamn of this Agreement a b recover far the bresrh thereof; or (e) Uae a retake such portion o[ the Equipment u the Lessor. in in sole discretion, may deride. All of the levee's right. title and interest io soy Fquipmem the posaestion of whirl b renkra by the Liner upon the oceurreaoe o[ m Even[ of faWt a Even[ of Nonappropriatian sha0 terminate immediately upon such repassarian, Section 13.03. Rater' of Fasiwsseu. Upm m Event ~ DefaWt, Lessee agrees b a0ow Lass b remvet the Equipment at Lessee's sole coat and espenae, in aocordmce wild Amide VI, Section 6.05. Section 13.04. Ne Remedv Exehsi.e. No remedy herein conferred upon a reserved to the Le»a is intended b be ealusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreenen a now a hereaGer e~asting at law a b equity. Section 13.05. Iate Cbarse: IMeaest on late Pawaen Any Rep W Payment sot paid an the doe date thereof shall bear a sate dmrge equal to two percent (2%) of the amomt of the past due Ren W Payment, but in no event lev thaw 3100.00. Any unpaid RmW Paymnt a other amomt payable by Lessee ro the Lessor hereunder. shah bear interest at the leper of (a) the rate pyabk as the prindpal ponioo of the Purchase Prig. piw fm full percentage points per amum, or (b) the maximum ram allowed by law. Section 13.06. Farce M.sense: I[ by realm of fora maieure Cesue is unable io while a io pan b orry out in agreement oo iu part herein conmined, other than the obbgations on the part of Lessee oontaioed in Amide VI sad Amide VIII Seaico 8.03 hereof; Levee shall sot he deemed io defaWt during the continumce of sues inatiiliry. The term "force mjeure' a used herein shall mean, without limitation, the [olbwing: was of Gad. snika, IaJ<oun a other indwtrial disturbances: as o[ public ertemin, orders a ratnion of any tlnd of the govaomnst of the United SLLUn of Amedn a the Sate a any oC rhea depammenu, agenda a o(fiaab, a say civil a military authority, iosunections; riatt: a••••+•au..~ earthquakes: foes: atoms: dtoughn; Goods: or explaiow. ARTICLE RIV hIISCEf1.ANE0US Section 14.01. Notices. All notices, cenifiesta a other oommunkadom hercundes shall be su~idently given and shall be deemed given when delivered or mailed by regomred mail, poaage prepaid, to the parries at the addresw set forth m the tint page hereof Season 14.02 Rindioe ERea. lbis Agreement shall inure to the benefit of and shall be binding upon Lama and Lessee sad then respective successors and assign. Section 14.03. Se-erwbWty. In the event soy provision o[ this Agreement shall be held invalid a wenforeeabk by arty coon of competent jurisdiaioe. such holding:hall sot invalidate a teach uoenfotaabk soy other providoo hereoL Section 14.04. Aaeadaeets. AO ameadmenn herb must be ie writing. Section 14.05. Eramtfoe hs Gwateewan~ Ibis Agreemeet may be eseasted b several mmtetpam. Section 14.OG Aasstkable law. Tbit Agreement shW 6e governed by wed oomtrtred b aomrdaace with the laws o[ the State. Section 14.07. Getloea, lbe option a heading in the Agreement am fa ceaveniestce oily and m wry define. limit or describe the snipe a intent o[ say provision a aeaioas a[ this Agrcemeat. Section 14.0& Emhe Agreement. 'Ibis Agreement comtitutes the entire agtammt between Lessor ester Lessee. No waiver, eomeot, modiGotim ^hange o[ terra o[ this Agreement shall bind either parry mlar in wri[iog signed by both parties, sad Then suds waiver, content, modiLntion a dunge shall tfeaive only in the spedLe intance and [a the spedfic putpae given. Tben ati oo uadaruading; agteemmn, repreuntation a wanaoties, e~rar _. uophed, not apedfied herein regarding this Agreement a the Equipment leased henmda. pay terms and moditiow o[ mY purrhau order a other doommt (with the exmptioo of Supplements) tubmiued by Lessee in conneaioo with this Agreement which are in addition to a iamnsistem wild the terms c~wurvreoerae ., and eendltian d thb wpeemeat wt~1 not be biodmg oo liawr .ad wig oa apply to thi Apeemem. teases by tee aiB•ature below d iu antharixed tepreseotative aeknowied~a tha it hu and this ~ -ment, uaaennaeds h sad agroes to be bawd b,' n aed omdiliao< ~rlct8 xv nttFxx,~ctlvcE ~iq ~ ._ Seetiea 13A1. sa , 'Ihe taaee'a ob' ~-~~ Agreement will be dirLarsed and satisfied h~1O° to pry the Pneehue Prise will be deemed m be paid and the LeaeeL obtipdms wader ihu , whie6 ate directly iowted a Wes the deposk by the lasax with the leas d (•) mooer.umaent to pry the Parcbase Prise a (b) abggations gnaaeteed by the United Sates a. wiW the prior wtine• mescal d the les-er. soy othsr ohggmioos in whidt any smkiog fund to bonds isued by the lessee mty legally be invested, the prmeipl d and interest as which when dta wBl provide stt~deot atooeya to sorb paymea~ IN WI'I7JESS WItEREOP, leas by eamted this Agreement in in mrporam name, aaested by iu dtty atttherved dfimrs. and twee has noted this Agreement l0 be eaemted is iu earporate name. aaauA by iu dalyauthv¢ed o[fian .4U d the above oowured u d the date [iat written oo the heading hereoL A[test IFSSOIt: 7itk: ' 7ille: AtWc I.ETSEE ~. Title: 1itk: cww>~aoe~nn EBHIBIT D DESCRIPTION OF THE EQIIIPMENT EQUIPMENT ECM No. 1 -- Replace the Existing Chilled Water Plant Equipment o~ . ~~d AS, i. Replace two existing R-11 centrifugal chillers with two new screw-type chillers using R-22 refrigerant ii. Reconfigure chilled water piping in the mechanical room to channel water in parallel fashion rather than is aeries iii. Replace existing chilled water pampa ao that oath unit is paired with each chiller iv. Change control system to permit new chillers to operate in tandem ECM No. 2 -- Energy Saving Control 3chemee i. Add bypass timers to fan coils and air handlers to allow after-hours operation ii. Replace existing chiller controls in Mechanical Room ECM No. 3 -- Lighting Retrofit i. Replace existing fluorescent lamps and magnetic ballasts with new energy efficient TS lamps and electronic ballasts ii. De-lamp 3-lamp fixtures to become 2-lamp fixtures and add reflectors to maintain existing light levels iii. Re-wire selected 2-lamp fixtures to be in tandem utilizing a single 4 -lamp ballast for two fixtures iv. Replace existing 2'x 4' light fixture lenses with new lenses v. Replace existing 1'x 4' light fixture lenses in the County Council Room with new lenses vi. Replace selected 60 Watt and 70 Watt incandescent bulbs in utility and stairway areas and at exterior walkways with 42 watt halogen bulbs or 15 Watt compact fluorescent lamps vii. Install lighting occupancy sensors in selected areas (a value added service) viii. Adjust the existing air quantities in the County Council Room (a value added service) ix. Calibrat e the existing thermostat (a value added service) EQUIPMENT LOCATION: ECM No. 1 -- Mechanical Room ECM No. 2 -- Mechanical Room and Control Panel ECM No. 3 -- Throughout the building By: Title: Date: