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Home My WebLink About122A-86 RESOLUTIONRESOLUTION NO. 122A-86 I� , A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE PURCHASE AGREEMENT WITH IBM FOR A COMPUTER SYSTEM. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: That the Mayor and City Clerk are hereby authorized and directed to execute a lease purchase agreement with IBM for a computer system. A copy of the agreement authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 5 day of December APPROVED Aidtick 1 1986. 1 Lir ��lllh�ll�lll�',,,,, January 5, 1987 Mr. Scott Linebaugh Administrative Services Director CITY OF FAYEPPEVILLE 113 W. Mountain Street Fayetteville, AR 72701 Dear Mr. Linebaugh: Per our conversation, I have enclosed LEASEMARK's 1986 Annual Report. As discussed, we world like the opportunity to provide financing for the City of Fayetteville. Since LEASEMARK provides lease purchase programs for all capital equipment acquisitions, we can offer a variety of payment plans for political subdivisions. These payment plans can be monthly, semi-annually, quarterly, or annually with payments being made in advance or in arrears. LEASEMARK also provides a means of acquiring within your budgeting constraints, as no down payment or pre -paid rentals are required. I have also enclosed our Municipal EZ -Lease for your review. This would be used for transactions of $25,000 and under. This docimient would eliminate the need for an Opinion of Counsel and an Amortization Schedule, which is required. on equipment over $25,000, in conjunction with our Lease With Option to Purchase Document. If, in fact, you have a bidder's list, please add our name or send us an application. Please feel free to give us a call for additional infoxmation, or should we be able to offer a lease quote as a comparison to a cash outlay on your next capital equipment purchase. Thank you for your time. Sincerely, LEASEMARK, INC. x`7'1 Jeri McWard Municipal Specialist JM/m1 Enclosure 1 4 CI VI /�_�__:_� 1'f _..L._._.. �_......_--- ��:__:_ CooC 1 ,0,/1\ coOnnnn ;:LGQOGI I !Q! 11 1604 COLONIAL PARKWAY P,O. BOX 60078-0925 PALATINE. ILLINOIS 60078 312/358-9300 1 — --CCJJ V n -- GOVERNMENTAL LEASE WITH OPTION TO PURCHASE NAME AND ADDRESS OF LESSEE CITY OF FAYETTEVILLE 113 W. Mountain Fayetteville, AR 72701 Address for billing it different than for Lessee: LEASE NUMBER QUANTITY EXHIBIT A —DESCRIPTION OF LEASED EQUIPMENT (Include Name and Address of Vendor) (See Attached Exhibit A for Equipment Description) Location of Equipment Fayetteville, 113 W. Mountain, Fayetteville, AR 72701 and Police Station 113 W. tlountain AP •77•7f1 LEASEMARK, INC. (Lessor) hereby rents and leases to Lessee with the option to purchase and Lessee hereby rents and leases from Lessor, upon the terms and ' conditions contained herein. the property set forth above. LEASE TERM. This Lease shall be effective as of the date of execution. The term of this Lease for the purposes of lease payments shall commence as of the date of execution by the Lessee of the Receipt Certificate, Exhibit C. and shall continue until the end of the Lessee's then fiscal period with lease payments to be made by Lessee as set forth on Exhibit Battached hereto and made a part hereof. The Lease shall be automatically renewed on a year to year basis for the additional annual or biannual fiscal periods plus a concluding tractional fiscal period needed to complete the anticipated total Lease Term as set forth on Exhibit B. Lessee shall pay 60 lease payments in the amount of $ •.11311.02 , A portion of each lease payment is paid as and represents payment of interest and Exhibit B sets forth the interest component of each lease payment. All lease payments shall be made payable to the Lessor al the address designated by Lessor on its invoice. The Lease Term shall terminate when all payments, including the option lo purchase payment, as provided in Exhibit B. have been paid. Lessee shall have the right to exercise its option to purchase the Leased Equipment upon payment of an amount equal to the option to purchase payment as of such date as set forth on Exhibit B. and upon the giving of notice to Lessor of such intention o1 Lessee at least thirty (30) days prior t0 the date upon which such right will be exercised. After all lease payments have been made pursuant to Exhibit B. Lessor shall transfer title to the Leased Equipment to Lessee for the consideration of One Dollar (51.00). Notwithstanding any dispute between Lessee and Vendor or Lessor, Lessee shall make all payments when due and shall not withhold any payments or portions thereof pending sinal resolution of such dispute. Lessee hereby convenants it will not assert any right of setoff or counterclaim against its obligation to make the payments provided for in Exhibit Band that it will take such action as is necessary under the laws applicable to Lessee to budget for. seek appropriation for. and include and maintain funds sufficient and available to discharge its obligations to meet all payments due during the Lease Term pursuant to provisions of this Lease. ASSIGNABILITY. Lessor may assign its right and interest in and to the lease payments and Leased Equipment without notice to Lessee. Such assignee shall have full benefit 01 all the convenants made by Lessee and all rights and remedies of Lessor contained herein. Lessee shall not have the right to assign its rights. duties and obligations under this Lease either in part or in whole without prior written consent of Lessor or its assignee. BILLING INSTRUCTIONS. Lessee requests that Lessor send its invoice for payment to the above address within days prior to the due date of payment. COVENANTS OF LESSEE. Lessee represents. covenants and warrants that it is a public body corporate and politic and is authorized by the constitution and laws of the State of Arkansas to enter into the transactions contemplated by this Lease and to carry out its obligations hereunder. Lessee has been duly authorized to execute and deliver this Lease and agrees that it will do or cause to be done all things necessary to preserve and keep its existence in full lorce and effect. Lessee further represents. covenants and warrants that all procedures have been met so that this Lease. i5 enforceable and Lessee has complied with all bidding requirements if required. SECURITY AGREEMENT. To secure the payment of the foregoing lease payments. and any and all liabilities. direct. indirect. absolute, contingent. due or to become due now existing or hereafter arising of the Lessee to the Lessor, the undersigned Lessee grants to the Lessor as the Secured Party a security interest in and to a1101 the property included in Description Of Leased Equipment above, together with all additions. attachments, accessions, substitutions and proceeds with respect thereto and Leased Equipment hereafter acquired to be maintained at the address of the Lessee. Lessee agrees. if requested by Lessor or its assignee, to execute and deliver to Lessor or its assignee financing statements or other similar instruments furnished by Lessor or its assignee. MISCELLANEOUS. The waiver by Lessor of Lessee's breach of any term. covenant or condition hereof shall not be a waiver of any subsequent breach of the same or .Any other term. covenant or condition. This Lease, together with Exhibits hereto, constitutes the entire agreement between the parries and shall not be modified. amended, altered, or changed except in writing. This lease shall be governed by the laws of the State of Arkansas and any provision of this Lease 'found to be prohibited by law shall be ineffective to the extent Of such prohibition without invalidating the remainder of This Lease. Lessee shall cause to be executed an opinion of its'counsel in the form as set forth below. • THE ADDITIONAL PROVISIONS ON THE REVERSE SIDE HEREOF WHICH HAVE BEEN READ BY LESSEE ARE 'INCLUDED IN AND,pMADE A PART HEREEO.F.. • IN WITNESS WHERCOF. Lessee has caused this Lease to be executed by its duly authorized officer this Z1 day 01 Mt/RCM19�J Witness or Attesl> __//7 rTTV CIF FAVRTTFVTT.T.r By l _ By Tha/tA..ttrJ 1lLa.9- i— (II ailest 1.) Printed Name. Title MARt`LVld SOHNSO}) MA'DIZ Attest: ACCEPTED 19 LEASEMARK, INC. I By , r J By Secretary President // OPIpfUUON OF COUNSEL. As Counsel for Lessee. I acknowledge that I have reviewed this Lease With Option to Purchase. the extract of any enabling minutes. and all nece(Sary proceedings taken by the Lessee to authorize and execute this Lease With Option to Purchase, and therefore, I am of the the opinion: (a) The Lessee is a duly constituted public corporation and political subdivision of the State referred to above. and (LA This Lease With Option to Purchase has been duly authorized. executed and delivered by an authorizedxeresenlative of the Lessee and is enforceable against the Lessee in accordance with its terms and conditions. and / (c1 This 1 pato With llntinn in Pi'rnhaea ie a lana) valid andhintlinn nhlinatinn n1 the 1 ocean - „' I rig NONAPPROPRIATION. It is Lessee's Intent to pay lease payments for the full tweeter as scheduled on Exhibit B and to take title to the Leased Equipment after the final payment and In thle regard lessee represents that the use of the Leased Equipment is essential to Its operations and that the functions performed by the leased Equipment could not and will not be transferred to other equipment. However, lithe leasee Is not allotted funds for any sucoeselveliscal period to continue the leasing of the Leased Equipment and It has no funds for such leasing from other sources. Lanes may terminate this lean at the end of the Then current fiscal period.and lessee shall not, in this sole event, be obligated t0 make any payments beyond the end of the then current fiscal period. Lessor shall have all the rights end remedies 10 lake possession of the Leased Equipment. 11 the provisions of the previous paragraph are utilized by Leasee. Lasses agree. not to purchase, Nue or rent equipment performing functions similar to those performed by ml Leased Equipment. and agrees not to permit functions slmllartothose perlormed through the useof the Leased Equipment to be performed by itsown employees or by any agency or entity affiliated with or hired by Leasee lore perlod of two were; provided. however. That these raalricVona shall not be applicable In the event the Leased Equipment shall be sold by Leumand lessesalWl pay to Lessor anamountsqualto (0 thethenappllcable option to purchase payment, (II) less the net amount received by Lessor or its Assignee from the We of the Leased Equipment Should the net amount received from such sale exceed the then applicable option to purchase payment. Lessor will refund such eaten amount to Levee. CAPE MW USE OF EQUIPMENT Leasee. at Its awn cost and expanse, shall maintain the Leased Equipment In good operating condition. repair and appearance. end protect same from deterioration other than normal wear and tear; shall use the leased Equipment In the regular.course of its bualneu only, within Its normal capacity, without abuse. and in a manner contemplated by the manufacturer thereof; shall not make modification. alterations or additions to the Leased Equipment (other than normal operating accessories or controls) without the written consent of Lessor, which shall not be unreasonably withheld; shall not so affix the Leased Equipment to realty so as to change its nature to real property, and agrees That the Leseed Equipment shall remain personal property at all times regardless of Mw attached or Installed; shall keep the Leased Equipment on the premises where delivered, and shall not remove the Leased Equipment without the written consent of Lessor, which shall not be unreasonably withheld. All modifications, repairs. alterations, additions, replacements, substitutions, operating accessoriesand controls shall accrue to the Leased Equipment and become the property of the Lessor. Lessor shall have the right during normal hours, to enter upon the premises where the leased Equipment is located in order to inspect, observe or otherwise protect Lessor's Interest, and Lessee shall cooperate in affording Lessor theopportunityto do same. For the purposeof e nuring Lessor that Lassoes equipment will be properly serviced. Levee agrees to cause the Leased Equipment to be maintained pursuant to the manuleclurer's standard preventive maintenance contract end/or recommendation. Lessee agrees that Lessor shall not be responsible for any loss or damage whatsoever to the Leased Equipment. nor shall Lessor be responsible for latent defects, wear and fear or gradual deterioration or lossof service or use of the Leased Equipment or any part thereat. Lessor shall not be liable to looses or anyone else for any liability, claim, Ion, damage or expense of any kind or nature caused directly or indirectly by the Inadequacy of the Leased Equipment or any item supplied by the vendor or any other party, any interruption of use or bas of service or use or performance of any equipment, any doss of business or Other consequence or damage. whether or not resulting from any of the foregoing. NET LEASE. Lessee intends the lease payments In this Lease 10 be net to the Lessor. Lessee shall comply with all laws and shall pay all faxes. if any. including but not limited to sales and use taxes, excise taxes, personal properly taxes and assessments. and penalties, licenses. registration fees, height and transportation charges. permits and any similarcharges imposed on the ownership. possession, or useof the Leased Equipment during the term of this Lease. Lessee shall obtain necessarygas, water, steam, electricity. light, heat or power. telephone or other utility service used on or in connection with the Leased Equipment and shall pay all charges including Installation. for suds services during the Lease Term. Lessee shall pay to totem all costs and expenses 16UlIYdOt'§7§1Ld"rNM7Llelh(as hereinafter defined. storage, caretaking and repossession expenses in connection with the enforcement of Lessor'srights under this Lean. Incase any charges, costs, taxes or expenses required l0 be paid by the Lessee under this Lease shall remain unpaid after the due dale thereol, the lessor shall have the right but shall not be obligated to pay the same and to charge such payments with interest at the highest legal rete from the date of said payment, as additional lease payments. to be paid with the next lease payment. INDEMNITY. Lessee shall and does hereby indemnify end save Lessor harmless from any and all liability arising out of the ownership. selection. possession. leasing, renting, operation. control. use. maintenance, delivery and/or velum of the Leased Equipment. including but not limited 1o. injuries causing personal injury, property damage and/or death but shall be credited with any amounts received by the Lessor with respect (hereto from liability insurance secured by Lesne. That said indemnification shall include all costs and expense&TdtKINKINYOimYyMXONncurred by Lessor in connection with any suits or actions resulting Irom any such liability. ?A LIENS. Lessee shall not directly or Indirectly create. incur. assume or suffer to exist any mortgage, pledge, Tien, charge, encumbrance or claim on or with respect to the Leased Equipment, except with respect to the respective rights of Lessor and Leasee as herein provided. Lesseeshall promptly. at its own expense, take such actions as may be necessary to duly discharge any such mortgage, pledge. Tien. charge, encumbrance or claim not excepted above if the same shall arise at any time. DISCLAIMER OF WARRANTIES. LESSOR MAKES NO WARRANTY OR REPRESENTATION. EITHER EXPRESS OR IMPLIED. AS TO THE VALUE. DESIGN. CONDITION. MERCHANTABILITY. FITNESS FOR PARTICULAR PURPOSE OR FITNESS FOR USE OF ANY OF THE LEASED EQUIPMENT OR AS TO ITS TITLE THERETO OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE LEASED EOUIPMENT. Lessor hereby assigns to Lessee for and during the Lease Term all manufacturer's warranties or guaranties, express or implied, Issued on or applicable to the Leased Equipment and Lessor authorizes Leasee to obtain the customary services furnished in connection with such warranties or guaranties al Lessee's expense. Lessee acknowledges that the Leased Equipment has been purchased by Lessor in accordance with Lessee's specifications and from a vendor selected by Leasee; that Lessor is nota manufacturer 01 Or dealer of such Leased Equipment and takes no part in or responsibility for the Installation of the Leased Equipment, end that Lessor has made no representation or warranty and assumes no obligation with respect to the merchantability, condition. quality or fitness of the leased Equipment or the enforcement of the manufacturer's warranties or guaranties. ENJOYMENT OF LEASED EQUIPMENT. Lessor hereby covenants to provide lessee during the Lease Term with quiet use and enjoyment of the Leased Equipment, without sun. trouble or hindrance Irom Lessor except as expressly set forth In this Lease. Any assignee of Lessor shall not interfere with such quiet use and enjoyment during the Lease Term so long as Lessee is not in default pursuant to this Lease. EVENTS OF DEFAULT AND REMEDIES. Lessee shall be deemed to be in default hereunder upon thehappening of any of the following events of default: (a) Lessee shall tail to make any lease payment. or to pay easy other payments required to be paid hereunder, or (b) Lessee shall fall to keep any such other term, covenant or condition contained herein. Upon the occurrence of an event of default as specified above. and Lessee shall fail to remedy such event of default with all reasonable dispatch, within e period o1 J0 days. then Lessor or its assigns shall hare the right, at its option without any further demand or notice. to pursue any one or more of me following remedies: (a) By written notice to Lessee, declare an amount equal to all payments due during the Lease Term 10 be Immediately due and payable to theextent permitted by State law as liquidated damages and not as a penalty. whereupon the same shall become immediately due and payable: (b) Re-enter and take possesiidn of the Leased Equipment enfordrrg the Lease or terminating the Lease, and repossess the Leased Equipment and sell or lease the Leased Equipment or sublease it for the account 01. Lessee. holding Lessee liable for all payments up to the effective date or such selling, leasing Or subleasing and for the difference in the purchneprice, rental and other amounts paid by the purchaser, lessee or sublessee pursuant to such sale. lease or sublease and the amounts payable by Lessee hereunder; and (c) take whatever action• e t law or in equity may appear necessary or -desirable to collect the payments then due and thereafter to become due or to enforce performance and observance of any obligation. agreement or covenant of Lessee under this Lease. t t . ( I, INSURANCE. At its own expense Lessee shall.cause casualty insurance to be carried and maintained with respect to the Leased Equipment and shall carry dli7C X110NXY(aNil WMIXIS INLWORLOAR00A9(auffident to protect the lull value of the Leased Equipment and to protect Lessor from liability M all events. All insurance - proceeds from casualty losses shall be payable solely to Lessee, subject to the terms of This Lease. On acceptance of the Leased Equipment. Lessee shall have . purchased a casualty insurance policy on the Leased Equipment. a copy of which may be furnished IM Lessor. Lessee shall carry Workmen's Compensation insurance covering all employees working on. in, near Or about the Leased Equipment and shall require any other person or entity working on. in, neer or.about the Leased Equipment to carrysucb coverage, and will furnish to Lessor certificates evidencing such coverage throughout the Lease Term. " TITLE TO LEADED EQUIPMENT. Title to the Leseod Ggi3ipmmt end any end all additions. repairs, replacements or modifications thereto shall be in lheesme el Loesewi}" as nominee Mr the benefit el itseeeignea. Lessor shall hold euoh title and every lira or other similardecumonlaryovidonoeof Myna/MipshedI carry the/oko*ing4egeae: g� "This equipment is aimed by Loasemark, Ina. as nominee ler to benefit al He assignee and this equipment may not be sold, transferred Or emeumberod Lassoo shell have see right, title or internal in the Leased Equipment or any additions, repairs, replegomante or modifications thvoto except es aircrew/ sin forth is Mis-Leese.Title shall pass to Lessee upon Acceptance by Lessor of signed Certificate ofpp tit NOTICES. All notices to be given under this Lease shall be made in writing and mailed to theotherpary at its address set forth herein or et such address as the party may provide in writing hoes time to time. Any such notice shall be deemed t0 have been received len days subsequent to -mailing. 'DAMAGE OR DESTRUCTION OF LEASED EQUIPMENT. In the event the Leased Equipment is partially damaged or destroyed, Lessee will promptly repair and restore the Leased Equipment to working order for the purpose intended. Lessee shall not beentnled to any reimbursement for any such damage or destruction from Lessor. nor shall Lessee be entitled tO any diminution of the amounts payable by it pursuant to This Lease. In the event the Leased Equipment is totally damaged or destroyed. Lessee may promptly repair and restore the Leased Equipment pursuant 10 provisions of the immediately Drecedino oaraoraoh. In the alternative. Lessee shall have the option to terminate this Lease upon payment of all of the Lease Payments due during me men IBM Hardware - 1st system Qty and test system 36 D2K terminals magnetic tape dr. band printer dot band printers dot matrix printers page printer EIA's system support station pass-thru tape support RPG 11 utilities development sup utility Query 36 displaywrite language diet computer assisted training 5710 pop 5799 enhanced emulation 5875 1 1 F T i 1 of two sv Machine / 5360 3196 8809 5262 4234 4224 3812 5727 5727 6102 5727 5727 5727 5727 5727 5727 eight x al for 1st system Hardware - 2nd of two system D2K terminals display color magnetic rape drive printer pc support system support station pass-thru tape support RPG II utilities development sup utility query 36 displaywrite language dict eight 1 EXHIBIT A EQUIPMENT DESCRIPTION stens Warranty 90 days 3 years 90 days 90 days 90 days 90 days 90 days Discounted Price S 75,692.00 12,732.00 11,660.00 11,880.00 15,488.00 18,480.00 8,122.00 3,000.00 4,312.00 0.00 0.00 704.00 510.00 850.00 807.00 1,760.00 105.00 990.00 500.00 9,217.00 5176.809.00 906.00 7,122.36 ems (Police Station) 5360 3196 3179 8809 4224 5727 5727 6102 5727 5727 5727 572% 5727 5727 90 days 3 years 90 days 5184,837.36 $ 72,717.00 - 10.610.00 5,337.00 11,660.00 3,696.00 658.00 4,312.00 0.00 0.00 .704.00 510.00 850.00 807.00 1,760.00 105.00 5113.726.00 416.00 4,599.04 T tal for 2nd system 5118,741.04 8 th Systems 5303.578.40 C fief's software Police/Fire/larking tickets Training and installation Cameo soft -are - Includes: -Accounting. purchase order, accounts receivable, payroll. investments. fixed assets. construction n progress, utility billing, personnel. inventory, vehicle and equipment. municipal court and scheduling -Maintenance file -Training and modifications Miscellaneous hardware 15 personal computers ARC XT 2 B. modems 4 C. remote -5250 emulation boards 3 Epson LQ 1000 tractor feed printers 4 IBM Ouietwriter II letter feed printers 8 UDS 9600 Baud modems Telephone connections and work Miscellaneous software. etc. 1 each 3196 ANC XT computer 6 each ports for IBM 30 Miscellaneous software packages to be purchased in the future 5 71,981.60 5.200.00 5 70,510.00 7,076.00 40,060.00 5 31,171.26 1,590.00 3,357.00 2,541.00 7,534.00 14;960.00 4,100.00 1,096.00 CITY OF FAYETTEVILLE hejQ t i pu 99441-11-0-%t 1,100.00 0 ^,,TITLE mNYD2 5.1.74.74 ccrr nnn nn DATE flq'Jaf a71 /yn/ EXHIBIT 8 SCHEDULE OF RENTAL PAYMENTS LESSEE: CITY OF FAYETfEVILLE DATE OF LEASE: NUMBER AND FREQUENCY OF PAYMENTS: 60 Monthly Payments , 19 Revised amortization Rental Payment Schedule schedule to be sent reflecting no prepayment Payment Payment Earned Principal Option T19enaltX,y,� Number Amount - Interest Reduction Purchase ,r1 i 11.377.02 2,428.83 8,882.19 592,767.61 Monthly payments will 11.31].02 2,392.97 8,918.05 583,849.76 remain the same. 1 11,:111.02 2,356.97 8,954.05 574,895.72 . 4 11.311.02 2,320.83 8,990.19 565,905.52 13,311.02 2,284.53 9,026.49 556,879.03 11,113.02 2,248.09 9,062.93 _ 547,816.11 13,311.02 t 2,211.51 9,099.51 538,716.59 e 11,311.02 2,174.77 9,136.25 529,580.35 9 .11,311.02 2,137.89 9,173.13 520,407.22 10 11,.311.02 2,100.86 9,210.16 511,197.05 11 13,311.02 2,063.68 9,247.34 501,949.71 .. 17. 11,311.02 2,026.35 9,284.67 492,665.04 11 13,113.02 1,988.86 9,322.16 483,342.88 i4 . 11,111.02 1,951.23 9,359.79 473,983.09 3S 11,313.02 1,913.45 9,397.57 464,585.52 16 11,111.02 - - 1,875.51 9,435.51 455,150.01 17 11,311.02 1,837.42 9,473,60 445,676.40 V. 11,111.02 1,799.17 9,511.85 436,164.56 174 11.33.02 1,760.77 9,550.25 426,614.31 20 71,311.02 1,722.22 9,588.80 417,025.51 21 11.31.7.02 1,683.51 9,627.51 407,398.00 22 13.111.02 1,644.65 9,666.37 397,731.63 23 13.313.02 1,605.62 9,705,40 386,026 23 24 11,311.02 1,566.44 9,744.58 378,281.65 25 11.311.02 1,527.10 9,783.92 368,497.74 2. 13,371.02 1,487.61 9,823.41 358,674.32 27 11,311.02 1,447.95 9,863.07 348,811.26 26 11.511.02 1,408.13 9,902.89 338,908.37 29 11,511.02 1,368.16 9,942.86 328,965.50 30 31.311.02 1,328.02 9,983.00 318,982.50 31 11.313.02 1,287.72 10,023.30 308,959.20 12 11.511 02 1,247.25 10,063.77 298,895.43 13 11.511.02 1,206.63 10,104.39 288,791.04 34 11.311.02 1,165.83 10,145.19 278,645.85 35 73,311.02 1,124.88 10,186.14 268,459.71 36 11.511.02 1,083.76 10,227.26 258,232.45 17 11,113.02 1,042.47 10,268.55 247,963.90 16 11,111.02 1,001.02 10,310.00 237,653.90 39 71.111.02 959.40 10,351.62 227,302.28 4* 11,311.02 917.61 10,393.41 216,908.86 43 13,513.02 875.65 10,435.37 206,473.49 42 . 11.111.02 - 833.52 10,477.50 195,996.00 41 11.133.02 791.23 10,519.79 185,476.20 44 11,311.02 748.76 10,562.26 174,913.94 4S 11,311.02 706.12 10,604.90 164,309.04 46 11,311.02 663.31 10,647.71 153,661.33 --<.17, it 111 02 - 620,32 10,690_70 142,970.63 46 11,311.02 577.17 10,733.85 132,236.78 49 11,371.02 533.83 10,777.19 121,459.59 50 11,311.02 490.33 - 10,820.69 110 638 90 Sl 11,311.02 446.64 10,864.38 99,774.52 52 11,311.02 _ 402.78 10,908.24 88,866.28 51 11,171.02 358.75 10,952.27 77,914.01 .54 11,311.02 314.53 10,996.49 - 66,917.53 SS 71,571.02 270.14 11,040.88 - 55,876.65 Si. 71.511.02 225.57 11,085.45 44,791.20 r7 .11.517.02 160.8213,130.20 33,661.00 `•6 11,311.02 135.89 11,175.13 22,485.87 `•4 11,311.02 90.77 - 11,220.25 11,265.62 40 11,31/.02 45.40 11,265.62 1.00 7 .t UNIFORM COMMERCIAL CODE—FINANCING STATEMENT—FORM UCC -1 INSTRUCTIONS REORDER FROM MODERN LAW FORMS CHICAGO (312) 640-1688 1. PLEASE TYPE this form. Fold only along perforation for mailing. « ._ 2. Remove Secured Party and Debtor copies and send other 3 copies with interleaved carbon paper to the filing officer. Enclose filing fee .. .. 3. When filing is to be with more than one office, Form 2 may be placed over this set to avoid double typing. 4. Iflhe space provided for any item(s)on the fore is inadequate the item(s) should be continued on additional sheets, preferably 5'x 8 or8"x10. Only one copy of such additional sheets need be presented to the filing officer with a set of three copies of the financing statement. Long schedules of collateral, indentures, etc., may be on any size paper that is convenient for the secured party. 5. Ifcollateral is crops or goods which are or are to become fixtures, describe generally the real estate and give name of record owner. 6. When a copy of the security agreement is used as a financing statement, it is requested that it be accompanied by a completed but unsigned set of these forms, without extra fee. 7. Attie time of original fling. filing officer shoudreturn third copy as an acknowledgement. At a later time, secured party may date and sign Termination Legend and use third copy as aTnminalion Statement. This STATEMENT is presented to a filing°Meer for Ming pursuant to the Uniform Commercial Code. 1 Debtor(s) (fast Name First) and address(m) CITY OF FAYETTEVILLE 113 W. Mountain Fayetteville, AR 72701 2 Secured Party(les) andaddress(es) LEASEMARK, INC. 1604 Colonial Parkway Inverness, IL 60067 4 TMs financing statement covers the following types (or items) of property: (See Attached for Equipment Description) 6 Complete only when filing with Judge of Probate: The initial indebtedness secured by the financing statement is $ 3 Maturity date (if any) For Filing Officer (Date, lime, Number, and Filing Orate) 5 ASSIGNEE OF SECURED PARTY Check 01fcovered: 0 Proceedso&Collateral are also covered 0 Products of Collateral are also covered No. of additional Sheets presented: mid with: CITY OF FAYETTEVILLE • • t ff SignaturOtot Debtor(s) - -. (STANDARD) . (1) FILING OFFICER COPY—ALPHABETICAL By: V' ` Signature of Secured Party • EXHIBIT A ....is}'`' -"Atte' fr.-.Y. Fw; k; iesY. .14 mala^I's- 2 Lli Q .r,:epw?;,t^ ,1St:.,r. ,r... EQUIPMENT DESCRIPTION• y41;7e it- iia ;.. .,ty m�!Z -u e.:. Iw R,i.^tie: ih u.,,i - t.0 'e. kTc.e:, CJ..b,..i F•, Y`.^_ f ... ..... ,,. IBM Hardware - 1st system of. two systems • Qty and test •" 1 system 36 02K -.12 terminals 1.magnetie tape dr. - --61 band printer 2 dot hand printers dot matrix printers page printer EIA's system support station pass-thru tape support RPG II ...I ``y'I"Query 36 �'"1 di splaywrite nomm, tent - 0''i'language dict 'computer ' assisted tray ning 5710 pop 5799 1 enhanced emulation 5875 utilities 'development' sup 'utility. Machine w Warranty Discounted Price 5360 ,. 90 days ,., S 75,692.00 . 3196 3 years 12,732.00 8809 90 days,;,-. _„_11,660.00 5262 90 days 4234 90 days 4224 _ .90 days 3812 90 days - 5727 5727 6102 5727 ._5727 .5727 5727 -_5727,nc I F T 1 eight x tal for 1st system M Hardware - 2nd of two systems Police Station) system D2K 1 terminals display color magnetic tape drive printer: pc support system support station pass-thru tape support RPC II utilities' development, sup utility. query 36 - displavwrite language dict ..Freight -..._._.... -.. Tax 5360 90 days 3196 - 3 years 3179 8809 90 days •4224 5727 5727 6102 5727 5727 5727 572 57: 5727 .Total for 2nd6. system'creact[ .. .t • Both Systems Chief's software - PoliceiFire,Parking tickets Training and installation. - . 11,880.00 15,488.00 18,480.00 8,122.00 3,000.00 4,312.00 0.00 - 0.00 704.00 ;._,510.00-, -ex 850.00." 807.00 y 1,-760.00 ;:va., :ticde:v.,..r cc b is .ni 990.00 500.00 9,217,00 3176,809.00 906.00 7,122.36 $184.,837.36 $ 72,717.00 10,610.00 5,337.00 11,660.00 3,696.00 658.00 4,312.00 0.00 0.00 704.00 510.00 850.00- 807.00 1,760.00 105.00 5113,726:00- 416.00 4,599.04 $118,741.04 3303.578.40 —$ 71,981.60 'alien -software' " " • -In cl oats:• -Accounting,' purchase order„ accounts receivable,. payroll; investments. fixed.assets, -construction-, n proggress, utility billing, personnel, inventory, vehicle and equipment. municipal i}.:.-_: courtiand sch ed ulin8'�� .. _.,,_.. -. . -Maintenance file -Training.-and modifications - - Miscellaneous hardware -- - IS.pers9nal_cPa.pucers ARC -IT 5. _:fir rYrfiit • 4 C. remote -5250 emulation boards 3 Epson LQ 1000 tractor feed printers -2.'--4-IBM'Quibtwriter"II letter feed printers 4 U05 9600 Baud modems Telephone connections and work - Miscellaneous software. etc. 1 eacn 3196 ARC XT computer 6 each ports.for Miscellaneous soil Qare packages.to be purchased in the future 70,510:'00' 7,096.00 40,060.00 • 31,171.26 1,590.00 3,357.00 2,541:00 7,531.00 14;960.00 4,100.00 1,096.00 .3,100.00,_ 5.124.74 5573-nnn. no CITY OF FAYETTEVILLE mil ABY \TITLE mAYOR- litay -UNIFORM COMMERCIAL CODE—FINANCING STATEMENT—FORM UCC -1 INSTRUCTIONS I. PLEASE TYPE this form. Fold only along perforation for mailing. 2. Remove Secured Party and Debtor copies andsend other 3 copies with interleaved carbon paper to the filing officer. Enclose filing fee 3. When filing is to be with more than one office. Form 2rnay he placed over this set to avoid double typing. 4. If the space provided for any item(s) on the form is inadequate the item(s) should be continued on additional sheets. preferably 5' X 8 or 8' x 10. Only one copy of such additional sheets need be presented to the filing officer with a set of three copies of the financing statement. Long schedules of collateral. indentures, etc., may be of any size paper that is convenient for the secured party. 5. If collateral is crops or goods which are or are to become fixtures, desaibe generally the real estate and give name of record owner. 6. When a copy of the security agreement is used as a financing statement. it is requested that it be accompanied by acompleted but unsigned set of these forms, without extra fee. 7. At the time of original filing. fling officer shoed return thud copy as an acknowledgement. Ata Tater time. secured party may date and sign Temiination Legend and use third copy as a Temtinatia Statement. REORDER FROM MODERN LAW FORMS CHICAGO (312) 640-1688 ThisSTATEMENT Is presented to a filingofficer for filing pursuant to the Uniform Commercial Code. 1 Debtors) (Last Name First) and addresses) CITY OF FAYETTEVILLE-, Police Department 113 W. Mountain Fayetteville, AR 72701 2 Secured Party(ies) andaddress(as) LEASEMARK, INC. 1604 Colonial Parkway Inverness, IL 60067 4 This financing statement covers the following types (or items) of property: (.See Attached for Equipment Description) 6 Complete only when filing with Judge of Probate: The initial indebtedness secured by the financing statement is Check Ox If covered: ❑ Proceeds ofCollateral are also covered 0 Products of Collateral are also covered Flied with: CITY OF FAYETTEVILLE ff 9 ignalur )ofDebtor(s) (STANDARD) (1) FILING OFFICER COPY—ALPHABETICAL By: 3 Maturity date (if any) For Filing Officer (Date, Time, Number, and Filing Office) 5 ASSIGNEE OF SECURED PARTY No. of additional Sheds presented: • Signature of Secured Party IBM Hardware - 1st system of two systems 1 1 F T T 1 1 F T Qty and lest system 36 D2K .. terminals magnetic tape dr. band printer dot band printers dot matrix printers page printer EIA's system support station pass-thru tape support RPG II utilities development sup utility Query 36 di splaywri to language dict computer assisted training pop enhanced emulation Machine a 5360 3196 8809 5262 4234 4224 3812 eight tal for 1st system 5727 5727 6102 5727 5727 5727 5727 5727 5727 5710 5799 5875 EXHIBIT A EQUIPPIENT DESCRIPTION Warranty 90 days. 3 years 90 days 90 days 90 days 90 days 90 days Discounted Price 5.75,692.00 12,732.00 11,660.00 11,880.00 15,488.00 18,480.00 8,122.00 3,000.00 4,312.00 0.00 0.00 704.00 510.00 850.00 807.00 1:760.00. 105.00 990.00 500.00 9.217.00 $176,809.00 906.00 7,122.36 M Hardware - 2nd of two systems (Police Station) system D2K terminals display color magnetic tape drive printer pc support system support station pass-thru tape support RPG II utilities development sup utility query 36 displaywrite language diet eight x T tal for 2nd system B th Systems C 5360 90 days 3196 3 years 3179 8809 90 days 4224 5727 5727 6102 5727 5727 5727 5727 572- 5727 ief's software Police/Fire/Parking tickets Training and installation Cameo S0ttW3re Includes: -Accounting, purchase order. accounts receivable. payroll, investments, fixed assets. construction in progress, utility billing, personnel. inventory. vehicle and equipment. municipal court and scheduling -Maintenance file -Training and modifications Miscellaneous hardware 15 personal computers ARC KT 2 B. modems 4 C. remote -5250 emulation boards 3 Epson LQ 1000 tractor feed printers 4 IBM Ouietwriter II letter feed printers 8 U0S 9600 Baud modems Telephone connections and work Miscellaneous software. ere. 1 eacn 3196 ARC XT computer 6 each ports for IBM 36 Miscellaneous software packages to be purchased in the future • $184,837.36 $ 72,717.00 - 10,610,00 5,337.00 11,660.00 3,696.00 658.00 4,312.00 0.00 0.00 • 704.00 510.00 850.00 807.00 1,760.00 105.00 $113,726.00 416.00 4,599.04 $118,741.04 $303,578.40 $ 71.981.60 5.200.00 $ 70,510.00 7.096.00 40,060.00 $ 31,171.26 1,590.00 3.557.00 2,541.00 7,534.00 14;960.00 4,100.00 1.096.00 3.100.00 5.124.74 CC]t nnn n0 CITY OF FAYETTEVILLE 94.4,4 TITLE h'IAwf a Al 12-2901 - OFFICERS AND PUBLIC EMPLOYEES 338 circumstance is.held invalid. such invalidity shall not affect other provisions or applications of the Act without the invalid provision or application, and to this end the provisions of this Act are declared to be severable." Emergency. Section 10 of Acts 1967, No. 93, read: "It is hereby found and determined by the General Assembly that the proper functioning of a democratic society is dependent upon the public being informed at all times with respect to the operations of government. and public officials shall at all times be held accountable for their public actions and conduct; that this State does not now have a law requiring that all public records be open to the public. except in those instances where otherwise specifically provided by law; that many agencies are now holding executive or closed sessions which is contrary to the spirit of the public business being transacted in open public meetings, and that the immediate passage of this Act is necessary to correct said situations and to secure to the public their proper right of access to public records and meetings of public agencies, boards and commissions. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval." Approved February 14, 1967. NOTES TO DECISIONS Construction. . The penal nature of this section does not make the entire Freedom of Information Act penal so as to require it to be strictly con- strued. Laman v. McCord. 245 Ark. 401. 432 S W 247531196n CHAPTER 29 TORTS BY AGENTS AND EMPLOYEES SECTION. 12-2901. State subdivisions immune from tort liability. 12-2902. Procedure for settling tort claims against subdivision. SECTION. 12-2903. Subdivisions required to carry liability insurance on motor vehicles. 12-2901. State subdivisions immune from tort liability. — It is hereby declared to be the public policy of the State of Arkansas that all counties, municipal corporations, school districts, special improvement districts, and all other political subdivisions of the State shall be immune from liability for damages, acid no tort action shall lie against any such political subdivision, on account of the acts of their agents and employees. [Acts 1969, No. 165, § 1, p. 455.] Cited: Williams v. Jefferson Hosp. Ass'n. 246 Ark. 1231, 442 S.W.2d 243119691; Reeme v. Natural Gas Imp. Dist. No. 2. 247 Ark. 983. 448 S.W.2d 647 (1970); Wawak v. Stewart. 247 ANALYSIS -I Action for deceit. Attorney's fees. Constitutionality. Road defects. Ark. 1093, 449 S.W.2d 922 (1970); Lassiter v. State Farm Mut. Auto. Ins. Co.. 371 F. Supp. 1221 I E.D. Ark. 19741. NOTES TO DECISIONS Action for Deceit. An action against a city by a landowner who alleged that his execution of a deed granting the city an easement across his property for the installation of sewer lines wus induced by deliberate fraud and was a cause of action for deceit which would be precluded by this section. Harrington v. City of Greenbrier, 262 Ark. 773, 561 S.W.2d 302 11978). Attorney's Fees. A municipality cannot be made liable for plaintiff's attorney's fees in an action seeking to establish right to otlice of alderman. May v. Edwards. 258 Ark. 871, 529 S.W.2d 647 11975i. 111ICIIIdU Vlla1 1;11.1011Mika IVIOM111IIVai %.•WpVIaaVll Composite Signature Agreement Name and Address of Customer. Agreement No.: City of Fayetteville 113 K. Mountain Street Fayetteville, AR 72701 IBM,Branch Office Address: -401 N. Capitol Little Rock, AR 72201 IBM Branch Office No.: Customer No.: MIll1V11M1, /VOW I UIM1 1 JULI ST2/MK6 3016200( Enterprise 0 ) International Business Machines Corporation (IBM) and the Customer agree that IBM will provide and the Customer will accept the products and services ordered by the Customer in accordance with the terms and conditions stated in the applicable Agreements, designated below by the Customer's initials, which the Customer agrees to include here- in. The included Agreements are attached hereto and are incorporated in this Agreement. This Composite Signature Agreement, when signed by IBM and the Customer, has the same effect as signing each of the Agreements designated by the Customer's initials, and is effective .upon acceptance by IBM. Initials• Title of Agreement 0A/ t --- — IBM,F,ormNumber All of the following, unless selectively designated by initialing below for individual documents - Agreement for Purchase of IBM Machines IBM Maintenance Agreement Agreement for IBM Licensed Programs Agreement for Lease or Rental of IBM Machines Agreement for IBM Hourly Machine Service Z120-2892-02 Z125-3275-01 Z125-3358-00( Z125-3320-01 Z120-2826-00 a re THE CUSTOMER ACKNOWLEDGES THAT THE CUSTOMER HAS READ EACH OF THE AGREEMENTS DESIG- NATED BY THE CUSTOMER'S INITIALS, UNDERSTANDS THEM, AND AGREES TO BE BOUND BY THEIR TERMS AND CONDITIONS. Accepted by: International Business Machines Corporation i f I By Authodzed Signature CS et."" By/ \� GitThe .Payst.t. Authorized f5ignature Name (Type or Print) Date Name (Type or Print) PRESS FIRMLY WITH BALL POINT PEN ON A HARD SURFACE FOR MAXIMUM LEGIBILITY. 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J03 Jaw0lsnp 0111 of suo!sle/woo!apow pue same' pas (e 'Jawoisnp 011101luawdmba mel-uou pue sauossao0e's}uawa!a eu!y0ew'sauppew 1109 (3 II!m We •wawdtnbe wep-uou p910010s;o JO seuos . -9903210 swewepa eu!y32w'suppleA0oo 'wow 'swnleel'sau!y02w wep }o ivawaaJ6y spy Japun 0901401 nd ayi Jo; mat Aq paldeome JapJo Je • • •-woisnp Aue of Aldde ppm suompuo3 pue stwa16u!mopo; 81113241 aw6e Jawoisnp 0141 pue (wet) uop81od)op seu!y02W ssau!sng 12004804841 (Zo-Zen-OZ LZ) represents that the Customer is the owner of the machine on which - any featOre or model conversion will be installed or, if not the owner, has the authority from the owner to order the feature or model conversion and to have it installed on the owners machine. Installation by IBM , IBM will install machines, features and model conversions which are not specified by IBM as Customer Set -Up. - The Date of Installation for a machine will be the day (Monday through Friday) following the day that 1) the machine is installed under this Agreement or under the applicable IBM lease or rental agreement, or 2) an on -order machine is available for delivery or is delivered to the Customer and the Customer fails to provide a suit- able installation environment or delays installation. The Date of Installation for a feature or model conversion will be the day (Monday through Friday) following the day that the feature o model conversion is installed under this Agreement or under the applicable IBM lease or rental agreement, except as otherwise pro- v'ded in this subsection. The installation of certain features and model conversions in- volves the removal of parts which become the property of IBM. Such features and model conversions will be specified in the Supple- ment. The Customer will provide IBM access to the machine to com- mence installing each such feature or model conversion as soon as possible after its shipment from IBM but in no event more than one month following the later of its Estimated Shipment Date or ac- tual date of shipment, unless a shorter period is specified in the Supplement. In the event the Customer fails to provide IBM such ac- cess to the machine within the specified period, the Customer shall return the feature or model conversion to IBM with shipping charges prepaid, unless otherwise agreed to by IBM. If the Customer delays installation of a feature or model conver- sion (other than one which involves the removal of parts which be- come the property of IBM) more than one month from the later of its Estimated Shipment Date oractual date of shipment from IBM, its Date of Installation will be considered to be the day (Monday through Friday) one month following such later date of shipment. IBM will notify the Customer of the Date of Installation of each on -order machine, feature or model conversion. Customer Set -Up Each machine, feature or model conversion specified by IBM as Customer Set -Up (CSU) and all machine elements and acces- sories will be set up by the Customer in accordance with the in- structions furnished by rem. The Date of Installation will be the day (Monday through Friday) following the day the machine, feature, model conversion, machine element or accessory is considered to be installed under this Agreement or under the applicable IBM lease or rental agree- ment. An on -order CSU machine will be considered to be installed on the last day of the CSU allowance period for such machine. The CSU allowance period, which does not include Saturdays or Sun- days, commences on the day (Monday through Friday) following the date of receipt of the machine at the Customer's premises. However, when a CSU machine is delivered in conjunction with, and for attachment to, a non -CSU machine delivered from IBM, such CSU machine will be considered to be installed as deter- mined in this paragraph or on the date such non -CSU machine is installed, whichever is later. The number of CSU Allowance Days for each CSU machine is specified in the Supplement. An on -order- CSU feature or model conversion, machine ele- ment or accessory will be considered to be installed one month fol- lowing the later of its Estimated Shipment Date or its actual date of shipment from IBM. PURCHASE OF INSTALLED MACHINES The Purchase Price stated in the Supplement is exclusive of any charges which are due or may become due under the applicable IBM lease or rental agreement. The Effective Date of Purchase for installed Machines shall be the later of the first day of the Quotation Month or the day on which the payment required under the Section entitled Prices and Payment" of. this Agreement is received by IBM at its IBM Branch Office or Remit to Address shown in the Supple- ment, provided such receipt is not later than the last day of the Quotation Month. The Machines will be terminated under the appli- cable IBM lease or rental agreement as of the day immediately pre- ceding the Effective Date of Purchase. Machines purchased under this Agreement will be 1) newly manufactured by or for IBM from new and serviceable used parts which are equivalent to new in performance in these Machines, 2) assembled by or for IBM from serviceable used parts, 3) Machines which have been previously installed, or 4) Machines which are presently installed with the Customer. IBM warrants that on the Date of Installation each on -order Machine will be in good working order and will conform to IBM'S offi- cial published specificationsMich are available upon request. The Warranty Period for each Machine, specified in the Supple= ment, commences on its Date of Installation as defined in the Sec- tion entitled "Installation." INSTALLED MACHINES PURCHASED AFTER THEIR WAR- RANTY PERIOD HAS EXPIRED ARE SOLD ON AN "AS 1S" BASIS. Service and Parts Warranty Commencing on the Date of Installation of each on -order machine, model upgrade and feature addition, or on the Effective Date of Purchase of each installed machine, model upgrade and feature addition, and continuing for the duration or remainder, if any, of the Warranty Period, IBM agrees to provide the availability of warranty service at no additional charge except as set forth in this Section or in the subsection entitled "Travel Expense " Warranty service will be provided, as required, by repairing the machine, model upgrade or feature addition or exchanging the machine or machine element under one of the Types of Service described in the subsection entitled 'Types of Service." The specific Type of Service for each Machine during its Warranty Period will be specified in the Supplement. For certain Machines, warranty op- tions that provide altemative methods of obtaining warranty ser- vice under another Type of Service are available under an IBM maintenance agreement. IBM shall have full, free and safe access to the Machines to pro- vide IBM On -Site Repair and IBM On -Site Exchange Types of Ser- vice thereon. The Customer shall promptly inform IBM of any change in a Machine's location during the Warranty Period The Customer is responsible to initially determine that the machine or machine element requires warranty service Before re- questing such service, the Customer agrees to follow the problem determination, problem analysis and service request procedures provided by IBM. The Customer is responsible for removing, controlling and re- placing or reloading funds contained in the Machines. IBM will ser- vice Machines containing funds only whenthe cash container can- not be opened prior to repair by IBM, n which case the Customer will remove the funds as soon as the container is or can be opened. The term 'tailing machine" refers to a machine or machine ele- ment requiring warranty service as initially determined by the Cus- tomer and, as applicable, verified by IBM. The term "exchange machine" refers to a machine or machine element provided by IBM to the Customer under an Exchange Type of Service. Repair Types of Service to keep the machines, model upgrades and feature additions in, or restore them to, good working order will include remedial maintenance and may include preventive mainte- nance based on their specific needs as determ ned by IBM. Repair Types of Service may also include lubrication, adjustments and re- placement of parts, all as deemed necessary by IBM. Parts, which may be used parts, will be installed by IBM on an exchange basis, and the replaced parts become the property of IBM. Under a Repair Type of Service when the Customer presents a failing machine to IBM, IBM reserves the right to venfy that warranty service is required for such machine. If so verified IBM will provide warranty service for such machine. The Customer Is responsible to remove, or implement other safeguards to protect, all program- ming, programs, data and removable storage media before a fail- ing machine is to be repaired Under an an Exchange Type of Service, when the Customer presents a failing machine to IBM, it becomes the property of IBM at the time of exchange. An exchange machine may not be new, but will be in good working order, and becomes the Customer's prop- erty at the time of exchange. IBM reserves the right to verify that warranty service is required for a failing machine and that it is otherwise acceptable for exchange, as provided for in this para- graph, prior to providing an exchange machine. The Customer is responsible to remove all programming, programs, data and re- movable storage media, and all non -IBM parts, options, alterations and attachments before a failing machine is presented for ex- .han,.e Tha r.,iota-try-stir arse. 'ha. all en ink ae,.." nnt .e,n...,nA..,m -GJ• OOVI my./ u!! I!V a Illdlld u! nlleJdudu uayl Saipu Ie!J21EU1 pue sped (!! 8UJq 6u!4!em pue l8Aep 6wpnpu!'ewq am/wasp); sa6Je40 wnw!u!w pue sale) aowes Apnoq apemen ,ipeieua6 ;pip (! s,wel le lueweei6y s!y3 Japun 'pouad A3ue1JBM algeogdde 0144 6uunp 'we! 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'P919418 'pane; -Op S! y3114M e6Uey3xe 101 aUlU3EW 61111912 W111 011wica ¢! lnu wen in service time caused by— a) ,failure to continually provide a suitable environment pre - %scribed by IBM including adequate space, electrical power, air conditioning and humidity control; b) neglect; misuse, including use of the Machines for purposes other than for which designed; c) accident; disaster, including water, wind and lightning; trans- portation; vandalism or burglary; d) alterations, including any deviation from IBM's Machine de- sign; e) attachments, including any interconnection to the Machine of non -IBM products or devices not under an IBM maintenance agreement; f) IBM Machines, other Machines or accessories, except those IBM Machines, other Machines or accessories that are owned by IBM, under warranty from IBM, or under an IBM maintenance agreement; g) model conversions, including upgrades and downgrades between models and machine types, or installation or re- moval of an IBM feature whenever any of these activities was performed by other than IBM, except that this subsection (g) will apply only during the first three-month period sub- sequent to such machine modification; and/or h) maintenance or repair of the Machine performed by other than IBM; 2) Repair of Machine damage, replacement of maintenance parts (due to other than normal wear) or repetitive service calls caused by the use of, inadequate use of, or failure to use, supplies' 3) Service for accessories other than as provided in the subsec- tion entitled "Additional Provisions for Machine Elements and Accessories"; 4) Inspection of Machines, including, but not limited to, inspection of altered Machines, damaged Machines and certain other cus- tomer -requested inspections; 5) Replacement or addition of maintenance parts and increase in service time, associated with the installation by IBM of an en- gineering change, required due to model conversions, includ- ing upgrades and downgrades between models and machine types, or installation or removal of an IBM feature whenever any of these activities was performed by other than lBM; 6) Rearrangement or relocation of Machines and provision of nec- essary materials; and 7) Replacement of a part not fumished for the Machine by IBM with a directly interchangeable IBM maintenance part, and any in- crease in service time associated with such activity except that IBM will not replace any part which is included in an alteration. Other Warranty Provisions and Exclusions The warranties under this Agreement are in lieu of any conflict- ing statement of limited warranty included with a Machine ship- ment, except that, for Machines which are subject to Federal or State consumer warranty laws, the statement of limited warranty included with a Machine shipment applies. The warranties under this Agreement do not include 1) fumish- ing supplies, painting or refinishing the Machines or furnishing ma- terial therefor, 2) electrical work extemal to the Machines, 3) instal- lation, maintenance or removal of alterations or attachments to the Machines, and 4) any service which is impractical tor IBM to render because of alterations in, or attachments to, the Machines. IBM does not warrant that the operation of the Machines or pro- gramming will be uninterrupted or error free or that all program- ming errors will be corrected. THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MER- CHANTABILITY AND FITNESS FOR A PARTICULAR PUR- POSE. OTHER PRODUCTS AND SERVICES Following the Warranty Period, IBM will provide, upon request and at IBM'S charges and terms then generally in effect, mainte- nance service and maintenance parts for the Machines and pro- gramming services for programming as long as such services and parts are generally available. Unless such services and parts are provided under another written agreement between the Customer and IBM, they shall be subject to the applicable terms and condi- contract with IBM for such other products and services as available, but only under a written agreement between the parties. ENGINEERING CHANGES IBM will furnish, upon request, and at IBM's prices then generally in effect, such engineering changes as IBM shall have available for sale and which may be suitable for use on or with the Machines. Any replaced parts become the property of IBM. IBM makes no rep- resentation that engineering changes announced in the future will be suitable for use on or with the Machines. PATENTS AND COPYRIGHTS IBM will, at its expense, defend the Customer against any claim that any Machines or programming supplied hereunder infringe a patent or copyright in the United States or Puerto Rico, and will pay all costs, damages and attomey's fees that a court finally awards as a result of such claim. To quality for such defense and payment, the Customer must: 1) give IBM prompt written notice of any such claim; and 2) allow IBM to control and fully cooperate with IBM in, the defense and all related settlement negotiations. IBM's obligation under this Section is conditioned on the Cus- tomer's agreement that if the operation of the Machines or pro- gramming become, or in IBM's opinion are likely to become, the subject of such a claim, the Customer will permit IBM, at its option and expense, either to procure the right for the Customer to con- tinue using the Machines or programming or to replace or modify them so that they become noninfringing; however, if neither of the foregoing altematives is available on terms which are reasonable in IBM'S judgment, the Customer will retum the Machines or pro- gramming upon written request by IBM. IBM agrees to grant the Customer a credit for returned Machines as depreciated. The de- preciation shall be an equal amount per year over the life of the Machines as established by IBM. IBM shall have no obligation with respect to any such claim based upon the Customer's modification of the Machines or pro- gramming or their combination, operation or use with apparatus, data or programs not fumished by IBM. This Section states IBM'S entire obligation to the Customer re- garding infringement or the like. LIMITATION OF REMEDIES IBM's entire liability and the Customer's exclusive remedy are set forth in this Section. In all situations involving performance or nonperformance of Machines or programming furnished under this Agreement, the Customer's remedy is 1) the adjustment or repair of the Machine or replacement of its parts by IBM, or, at IBM's option, replacement of the Machine or correction of programming errors, or 2) if, after re- peated efforts, IBM is unable to install the Machine or a replacement Machine in good working order, or to restore it to good working order, or to make programming operate, all as warranted, the Cus- tomer shall be entitled to recover actual damages to the limits set forth in this Section. For any other claim conceming performance or nonperformance by IBM pursuant to, or in any other way related to the subject matter of, this Agreement or any order under this Agreement, the Customer shall be entitled to recover actual dam- ages to the limits set forth in this Section. IBM's liability for damages to the Custome- r for any cause what- soever, except as otherwise stated in this Section, and regardless of the form of action, whether in contract or in tort including negli- gence, shall be limited to the greater of $100,000 or the Purchase Price stated in the applicable Supplement for the specific Machines that caused the damages or that are the subject matter of, or are directly related to, the cause of action. The foregoing limi- tation of liability will not apply to the payment of costs, damages and attomey's fees referred to in the Section entitled "Patents and Copyrights," or to claims by the Customer for personal injury or damage to real property or tangible personal property caused by IBM's negligence. 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The tern "exChange machine" refers to an IBM machine, in- cluding its IBM and selected non -IBM features, a machine element or a selected nor'IBM machine provided by ISM to the Customer under an Exchange Type of Service. Repair 'Types of Service to keep the Machines in, or restore them to, good working order will include remedial maintenance and may include preventive maintenance based on their specific needs as determined by IBM. Repair Types of Service may also in- clude lubrication, adjustments and replacement of maintenance parts; all as deemed necessary by IBM. Maintenance parts, which may be used parts, will be installed by IBM on an exchange basis, and the replaced parts become the property of IBM. Under a Repair Type of Service, when the Customer presents a failing machine to IBM, IBM reserves the right to verify thatmainte- nance service is required for such machine. If so verified, IBM will provide maintenance service for such machine. The Customer is responsible to remove, or implement other safeguards to protect, all programming, programs, data and removable storage media before a failing machine is to be repaired Under an Exchange Type of Service, when the Customer pre- - sents a failing machine to IBM, it becomes the property of IBM at the time of exchange. An exchange machine may not be new, but will be in good working order, and becomes the Customers property at the time of exchange. IBM reserves the right to verify that maintenance service is required for the failing machine and that it is otherwise acceptable for exchange, as provided for in this para- graph, prior to providing.an exchange machine. The Customer is responsible to remove all programming, programs, data and re- movable storage media, and all non -IBM parts, options, alterations and attachments before a failing machine is presented for ex- change. The Customer agrees that all such items not removed will be deemed to have been discarded by the Customer. The Custom- er will not present to IBM a failing machine for exchange which is defaced; altered, in need of repair not included in maintenance ser- vice or damaged beyond repair. However, if upon inspection IBM determines that it has received in exchange a failing machine in such condition, the exchange will be nullified and each party will return to the other the machine or machine element in its posses- sion. The Customer represents end warrants that at the time a fail- ing machine is presented to IBM under an Exchange Type of Ser- vice, and thereby becomes IBM's property, it will be free of any out- standing liens, security interests or other encumbrances held by any third party. Warranty Option For certain IBM Machines, Warranty Options are available which permit the Customer to select an alternative method of receiving any required warranty service in lieu of the method provided under the IBM warranty, and the Warranty Option selected will also in- clude maintenance service following the Warranty Period 0 such Warranty Period is less than one year. Such methods are de- scribed in the subsection entitled "Types of Service" and specified in the Supplement. In this Agreement service under Warranty Op- tion -will be referred to as "maintenance service'; however, any provisions of the Agreement for Purchase of IBM Machines or of an IBM warranty statement, if applicable, which are more favorable to the Customer than the provisions hereunder, remain in effect. A Warranty Option, if available, for an IBM Machine may be selected by the Customer at any time before the Machine's Warranty Period expires and begins on the Effective Date specified'in the Supple- ment. For an IBM Machine with a Warranty Period of one year or less, a selected Warranty Option expires one year from the date such Machine's Warranty Period began. For an ISM Machine with a Warranty Period greater than one year, a selected Warranty Op- tion expires at the end of such Machine's Warranty Period, Maintenance service for an ISM Machine following a Warranty Option will be provided under the same Type of Service selected for such Warranty Option at IaM's then current maintenance charges. , Types of Service • The Types of Service available for each machine will be deter- mined by IBM. The Customer will select one of the available Types of Service for each machine and this selection will be shown in the Supplement. The Customer may subsequently' select another available Type of Service upon 15 days' notice to IBM. IBMOnSite Repair (10R) IBM will provide maintenance service for the failing machine 'thn (N„clmmet: a Inrntinn IBM will 1) deliver the exchange machine to the Customer's location, 2) disconnect the failing machine, 3) connect the ex- change machine, 4) verity its operation, and 5) remove the fail- ing machine from the Customer's location. Customer On -Site Exchange (COE) • IBM will have an exchange machine delivered to the Custom- er's location. The Customer will 1) disconnect the failing machine and prepare it for shipment to IBM, 2) connect the ex- change machine, and 3) verify its operation. The Customer will follow IBM's instructions regarding the shipment of the failing machine to IBM. Such shipment will be at IBM'S expense. Customer Carry -In Exchange (CCE) The Customer will 1) deliver the failing machine to an IBM Service/Exchange Center or other IBM designated location, 2) pick up the exchange machine and take it to the Customer's lo- cation, 3) connect it, and 4) verify its operation. In lieu of such delivery and pickup, the Customer may ship the failing machine, prepaid, in the original shipping container or equivalent, to an IBM Service/Exchange Center designated to receive such a shipment. Following receipt of the failing machine, IBM will ship the exchange machine to the Customer's location, prepaid, within the United States or Puerto Rico. CustomerCarry-In Repair (CCR) The Customer will 1) deliver the failing machine to an IBM Service/Exchange Center or other IBM designated location, 2) following any necessary repairs, pick up the machine or machine element and take it to the Customer's location 3) con- nect it, and 4) verify its operation In lieu of such delivery and pickup, the Customer may ship the failing machine, prepaid, in the original shipping container or equivalent, to an IBM Service/Exchange Center designated to receive such a sh'pment. Following any necessary repairs, IBM will ship the machine or machine element to the Customer's location, prepaid, within the United States or Puerto Rico. Risk ofLoss orDamage ' • The, Customer agrees that the Customer is responsible for risk of .loss, of, or damage to, Machines during the period such Machines are in transit to and from IBM, except for loss or damage caused by IBM'S negligence. However, IBM is responsible for risk of loss of or damage to, 1) Machines owned by IBM and/or 2) Machines owned by other than IBM while in possession of IBM or in transit from IBM by an IBM -selected carrier whose charges were pre- paid byIBM. Periods of Maintenance Service The Base Period of Maintenance Service ler IBM On -Site Repair and IBM On -Site Exchange Types df Service is from 7 a.m. to 6 p.m., Monday through Friday unless otherwise designated by IBM in the Supplement. For certain machine types designated by IBM, the Customer may select Optional Periods of Maintenance Service shown in the Supplement. The Optional Period of Maintenance Service for Monday through Friday must include the Base Period of Maintenance Service and must be the Same consecutive hours each day. The Optional Period of Maintenance Service on Satur- day or Sunday must be the same consecutive hours on all Satur- days or Sundays, respectively. Subsequent to the date the machinebecomes subject to this Agreement, the Customer may select or change Optional Periods of Maintenance Service to be effective upon 15 days' -notice to IBM. The Period of Maintenance Service for Customer On -Site Ex- change, Customer Carry -In Exchange and Customer Carry -In Re- pair Types of Service is the normal business hours of the applica- ble IBM Service/Exchange Center. ENGINEERING CHANGES Engineering changes for Machines determined applicable by IBM, will be controlled and installed, as specified by IBM, under this or another applicable ISM agreement. However, the Customer may, by providing notice subject to written confirmation by IBM, elect to have only mandatory changes, as determined by IBM, installed on Machines. CHARGES• The Customer agrees to pay maintenance charges for each Machine consisting of 1) a Minimum Maintenance Charge or Mini- mum Warranty Option Charge and 2) Additional Maintenance :senddns'asn 04 amps] Jo 'jo esn aienbepeu! 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EXCLUSIONS IBM will not provide the following services under this Agreement: 1) furnishing supplies, painting or refinishing the Machines or furnishing materials therefor; 2) electrical work extemal to the Machines; 3) installation, maintenance or removal of alterations or attach- ' mentstotheMachines;and 4) any service which is impractical for IBM to render because of alterations in, or attachments to, the Machines. INVOICING Minimum Maintenance Charges and Additional Maintenance Charges for Optional Periods of Maintenance Service will be in- voiced in. advance for the applicable invoice period for each machine shown in the Supplement. -The Additional Maintenance Charge or Estimated Additional Maintenance Charge for the amount of processing for Usage Plan Machines will be invoiced fol- lowing the period to which it applies. All other charges or credits will be invo'ced when or after they are incurred or earned. Monthly charges, when prorated, will be prorated on the basis of a 30 -day month. PAYMENT Payment of maintenance charges will be made within 30 days after the date of the invoice. All other charges hereunder are pay- able as specked in the invoice. The Customer will be entitled to a partial credit for maintenance charges so paid upon the with- drawal of Machines or termination of this Agreement, as set forth in the Section entitled "Wittidrawal/Termination," prior to the expi- ration of the invoice period for which the payment applies. W ITH D R A W A L/TE R M I N ATI O N The Customer may withdraw a Machine from this Agreement upon one month's written notice to IBM a) after the Machine has been under this Agreement for at least six months, b) after the Machine has been under this Agreement for at least one month and it has been removed from the Customer's location, or c) on the effective date of the notice of an increase in maintenance charges for the Machine. IBM may withdraw a Machine from thisAgreement: a) upon three months' written notice to the Customer, one year or more after maintenance service for such Machine has commenced, but not prior to the end of the period for which IBM has, prior to the date of such notice, submitted an invoice to the Customer for the Minimum Maintenance Charge for such Machine; or b) upon one month's written notice to the Customer, following any repetition of the need for additional repair of such Machine due to causes described in items (1) (b) or (1) (h) of the Section entitled "Services for Additional Charge." Either the Customer or IBM may withdraw Machines or terminate this Agreement at any time, by written notice, for failure of the other party to comply with any of its terms and conditions. This Agreement may be terminated by either party upon one month's written notice following withdrawal of all Machines and ful- fillment of all obligations hereunder. LIMITATION OF REMEDY AND DISCLAIMER OF WARRANTY IBM's entire liability and the Customer's exclusive remedy for damages from any cause whatsoever, and regardless of the form oe imiteu to aurua uaruaye5 up to HIV yrt/dAVI VI gal uvu ul till amount equal to 12 months' maintenance charges for the specific Machines under this Agreement that caused the damages or that are the subject matter of, or are directly related to, the cause of ac- tion. Such maintenance charges will be those in effect for the spe- cific Machines when the cause of action arose. The foregoing limi- tation of liability will not apply to claims by the Customer for per- sonal injury or damage to real property or tangible personal prop- erty caused by IBM's negligence. In no event will IBM be I able for any lost profits, lost savings, inci- dental damages or other consequential damages, even if IBM has been advised of the possibility of such damages, nor will IBM be li- able for loss of funds contained in, dispensed by or associated with, any Machine under this Agreement. IBM will not be liable for any claim by the Customer based on any third party claim. THIS IS A SERVICE AGREEMENT. THERE ARE NO IBM WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MER- CHANTABILITY AND FITNESS FOR •A PARTICULAR PUR- POSE. • SERVICES FOR OTHER MACHINES If requested by the Customer, and agreed to by IBM, IBM will pro- vide maintenance service and/or other services (services), if avail- able, for other machines for which IBM maintenance service is gen- erally available and for so long as such maintenance service is available (unless such services are the subject of another written IBM agreement). If such services are performed by IBM on an hourly service basis, they will be provided at IBM's a) then generally avail- able hourly service rates and minimum charges for service time, including travel and waiting time, b) parts and material prices then generally in effect, and c) charges for travel and shipping expense, all as applicable. Such services shall be subject to the applicable terms and conditions of this Agreement, including, but not limited to, this Section and the Sections entitled "Services for Additional Charge" and "Limitation of Remedy and Disclaimer of Warranty " and such services shall also be subject to other terms and condi- tions included in any IBM supplied documents fumished in conjunc- tion with the services provided. However, if such a document con- tains a statement of the dollar value of IBM's limitation of remedy such dollar value shall apply. GENERAL This Agreement is not assignable by the Customer without the prior written consent of IBM. Any attempt to assign any of the rights, duties or obligations of this Agreement without such consent is void. Maintenance service or services for additional charge do not as- - sure that the operation of the Machines will be uninterrupted or error free and IBM is not responsible for failure to fulfill its obliga- tions under the Agreement due to causes beyond its control The Customer represents that the Customer is either the owner of each Machine under this Agreement or authorized by the owner to include such Machine under this Agreement. = All features and model upgrades that are 1) eligible for mainte- nance service under this Agreement, 2) installed on a machine under this Agreement, and 3) not under IBM warranty or another manufacturer s warranty must be under this Agreement with the same Type of Service and, if applicable, the same Optional Periods of Maintenance Service as the machine on which they are installed. IBM services described herein may be rendered by the use of IBM -selected independentcontractors. IBM may, upon three months' written notice to the Customer, modify the terms and conditions of this Agreement. However, if such modification is unfavorable to the Customer for an affected Machine, its effective date will be delayed for such Machine until the expiration of the period for which IBM has submitted an invoice to the Customer or six months after such Machine became subject to this Agreement, whichever is later. Otherwise, this Agreement can only be modified by a written agreement duly signed by per- sons authorized to sign agreements on behalf of the Customer and of IBM. Any variance from the terms and conditions of this Agree- ment in any order or other written notification from the Customer will be of no effect. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enfor- ceability of the remaining provisions shall not in any way be af- fected or impaired thereby. ..