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The Lessee shall then be responsible for securely erasing or destroying the hard drive, If Lessee is not in breach of
<br />this Agreement, all costs of removing and transporting the Leased Equipment at the expiration of the Lease Term
<br />shall be the responsibility of Lessor.
<br />(d) Risk of loss of the Leased Equipment rests with Lessor until the Leased Equipment is delivered to the Lessee's
<br />designated location, at which time risk of loss passes to Lessee.
<br />(e) If the Order Form indicates this lease is a Fair Market Value Lease, at the end of the Lease Term and upon 30
<br />days' prior written notice to Lessor, Lessee may purchase all, but not less than all, of the Leased Equipment AS -IS
<br />and WHERE -IS, WITHOUT ANY WARRANTY AS TO CONDITION, TITLE OR VALUE, for the Fair Market
<br />Value, plus applicable sales and other taxes, if any.
<br />5. TAXES. Lessee agrees to pay all fees, assessments, taxes and charges governmentally imposed upon Lessor's
<br />purchase, ownership, possession, leasing, renting, operation, control or use of the Leased Equipment.
<br />6. TERMINATION.
<br />(a) Termination by Mutual Consent. Any discretionary or vested right of renewal notwithstanding, this Agreement
<br />may be terminated upon written notice by mutual consent of both parties.
<br />(b) Termination by Lessee without Cause. This lease may be bought out and all Leased Equipment returned to
<br />Lessor, although fair market value leases, operational leases, non -cancelable rentals and capital leases are subject to
<br />termination charge. The termination charge is equal to the balance of unpaid lease payments and other amounts due
<br />hereunder (including any current or past due amounts) for leases and with regard to service or maintenance
<br />obligations, may not exceed more than four (4) month service and supply base or 25% of the remaining term,
<br />whichever is less.
<br />(c) Termination for Non appropriation. The continuation of this Agreement beyond the current fiscal period is
<br />subject to and contingent upon sufficient funds being appropriated, budgeted, and otherwise made available by
<br />Lessee's legislature, governing body and/or federal sources. If for any reason Lessee's funding is not appropriated
<br />or is withdrawn, limited, or impaired, Lessee may terminate this Agreement, and Lessor waives any and all claim(s)
<br />for damages, effective as of the end of the fiscal period in which written notice of such non -appropriation,
<br />withdrawal, limitation or impairment is provided by Lessee to Lessor. If Lessee terminates this Agreement because
<br />of non -appropriation, withdrawal, limitation or impairment of funds, Lessee will not purchase, lease or rent
<br />replacement equipment performing the same functions as the Leased Equipment during the subsequent fiscal period.
<br />(d) Termination for Default or Breach. A default or breach may be declared with or without termination. This
<br />Agreement may be terminated by either party upon written notice to the other party for any material breach or default
<br />by the other party of any terms, conditions, covenants, or obligations of this Agreement. Notice of termination for
<br />breach or default is effective 30 days following service of notice, or upon any subsequent date specified in the notice
<br />of termination. Termination by Lessor due to Lessee's material breach or default will be subject to a termination
<br />charge,: which is equal to the balance of lease payments and other amounts due hereunder (including any current or
<br />past due amounts) for leases and may not exceed more than four (4) month service and supply base or 25% of the
<br />remaining term, whichever is less, for service and maintenance charges.
<br />7. INSURANCE. At Lessor's request, Lessee shall provide to Lessor proof that the Leased Equipment is covered for
<br />the value thereof against property loss or damage while in Lessee's possession by Lessee's program of self-insurance
<br />(if approved by Lessor and Lessor's assignee, if any) or a policy of property insurance from a qualified insurer.
<br />8. LOSS OR DAMAGE. If any item of Leased Equipment is lost, stolen or damaged, Lessee will, at Lessee's option
<br />and cost, either: (a) repair the item or replace the item with a comparable item reasonably acceptable to Lessor; or (b)
<br />pay Lessor the sum of: (i) all past due and current lease payments and other amounts due under this Agreement; (ii)
<br />the present value of all remaining lease payments for the effected item(s) of Leased Equipment, discounted at the rate
<br />of 6% per annum; and (iii) if this lease is not a Capital Lease, the Fair Market Value of the effected item(s) of Leased
<br />Equipment. Upon Lessee's payment to Lessor under clause (b) above, Lessor will then transfer to Lessee all of
<br />Lessor's right, title and interest in the effected item(s) of Leased Product AS -IS AND WHERE -IS, WITHOUT ANY
<br />WARRANTY AS CONDITION, TITLE OR VALUE. "Fair Market Value" means the item's fair market value at the
<br />end of the Lease Term, assuming good order and condition (except for ordinary wear and tear from normal use), as
<br />estimated by Lessor. No such loss or damage shall relieve Lessee of payment obligations hereunder.
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