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HomeMy WebLinkAbout20021140.tiff RESOLUTION RE: APPROVE EQUIPMENT LEASE/PURCHASE AGREEMENT AND AUTHORIZE CHAIR TO SIGN - FIRST NATIONAL BANK WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with an Equipment Lease/Purchase Agreement between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Public Works, and First National Bank, commencing upon full execution of said Lease Agreement, with further terms and conditions being as stated in said Lease Agreement, and WHEREAS, after review, the Board deems it advisable to approve said Lease Agreement, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Equipment Lease/Purchase Agreement between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Public Works, and First National Bank be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said Lease Agreement. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 1st day of May, A.D., 2002. BOARD OF COUNTY COMMISSIONERS WE��TY, COLORADO ATTEST: K /D�'//� ''''3 h', .. 1/4--a-e4- ?c`J lenn Vaad, Chair Weld County Clerk to the : rd 1861 .41, 4,A O CUSED DATE OF SIGNING (AYE) a-vid E. Lo g, Pro-Tem Deputy Clerk to the Boar UN. M. J. eile VED AS F �1� vi--.---:( W'lliam H. Jerke unty Attorne '�I\.Q s/ Robert D. Masden Date of signature: i-3 Q 2002-1140 dc, Q 1 po EG0046 EQUIPMENT LEASE/PURCHASE AGREEMENT This Equipment Lease/Purchase Agreement dated as of May 2 ,2002, is entered into between First National Bank("Lessor") and the County of Weld ("Lessee"), a body politic and corporate under the Constitution and laws of the State of Colorado. WITNESSETH: WHEREAS, authority exists in the law, and funds have been budgeted, appropriated and otherwise made available; and WHEREAS, required approval, clearance and coordination has been accomplished from and with appropriate agencies, and WHEREAS, Lessor desires to lease the Equipment, as hereinafter defined, to Lessee and Lessee desires to lease the Equipment from Lessor subject to the terms and conditions of and for the purposes set forth in this Equipment Lease/Purchase Agreement, and WHEREAS, Lessee is authorized under the Constitution and laws of the State of' Colorado to enter into this Equipment Lease/Purchase Agreement for the purposes set forth herein; NOW THEREFORE, for and in consideration of the premises hereinafter contained. The parties hereby agree as follows: ARTICLE I. DEFINITIONS Section 1.01. Definitions. The following terms will have the meanings indicated below unless the context requires otherwise. Commencement Date "Commencement Date" means the date when the term of this Lease begins and Lessee obligation to pay rent accrues, which date shall be the date on which the Equipment is accepted by Lessee as indicated on the Acceptance Certificate attached hereto as Schedules A, and the Lease Term shall not commence until the Acceptance Certificate has been executed by Lessee. Equipment "Equipment" means the property described in Schedules A and B hereto,which is the subject of this Lease. Event of Nonappropriation "Event of Nonappropriation" means Lessee's failure, for any reason whatsoever, to appropriate the payments required pursuant to this Lease. Fiscal Year "Fiscal Year" means the Lessee's fiscal year, which begins on July 1 and ends June 30 of the following year. Full Insurable Value "Full Insurable Value" means, as of the date of determination, the sum of all of the Amounts Attributable to Principal remaining to be paid by Lessee under this Lease, assuming renewal for all Renewal Terms, as set forth in Schedule C hereto. Lease "Lease" means this Equipment Lease/Purchase Agreement, including all Addenda and Schedules A through E attached hereto. Lease Term "Lease Term" means the time during which the Lessee leases the Equipment under this Lease as provided in Section 4.01 hereof, subject to the terms and provisions of Sections 4.02, 6.01, 6.02 and 6.06 hereof. Lessee "Lessee" means the County of Weld, a public body corporate and political subdivision of the state, legally existing under the laws of the State of Colorado. Lessor "Lessor" means First National Bank, a national banking association, with its principal place of business at 205 W. Oak Street, Fort Collins, CO 80521, acting as lessor hereunder, or any successors, transferees, or assignees. Net Proceeds "Net Proceeds" means the amount remaining from the gross proceeds of any insurance claim or condemnation award after deducting all expenses (including reasonable attorney's fees) incurred in connection with the collection of such claim or award. Option Price "Option Price" means, as of the date of determination, the amount set forth under the caption "Option Price" in Schedule C hereto, which Lessee may, at its discretion, pay Lessor in order to obtain the full right, title, and interest of Lessor in the Equipment. Rental Payments "Rental Payments" means the total amounts payable by Lessee pursuant to the provisions of this Lease during the Lease Term in consideration of the right of Lessee to use the Equipment during the then current portion of the Lease Term. Rental Payments shall be payable by Lessee to the Lessor or its assignee in the amounts set forth under the caption "Total Rental Payment" and at the time during the Lease Term set forth in Schedule D of this Lease. Vendor "Vendor" means the manufacturer of the Equipment, its agents or dealers, or any other person from whom Lessor or Lessee purchased or is purchasing the Equipment; provided, however, that neither Lessee nor Lessor shall be deemed to be a "vendor" of the Equipment for the purposes of this Lease. ARTICLE II. COVENANTS OF LESSEE Section 2.01. Representations, Covenants, and Warranties of Lessee. Lessee represents, covenants, and warrants for the benefit of Lessor as follows: 1. Lessee is a duly organized and existing body corporate under the Constitution and laws of the State of Colorado. 2. Lessee will do or cause to be done all things necessary to preserve and keep in full force and effect its existence as a body corporate of the State. 3. Lessee is authorized under the Constitution and laws of the State of Colorado to enter into this Lease and the transaction contemplated hereby and to perform all of its obligations hereunder. 4. Lessee has been duly authorized to execute and deliver this Lease under the terms and provisions of the resolution, a copy of which is attached hereto as Schedule E, or by other appropriate official approval, and further represents, covenants, and warrants that all requirements have been met and procedures have occurred in order to ensure the enforceability of this Lease in accordance with its terms, and Lessee has complied with such public bidding requirements as may be applicable to this Lease and the acquisition by Lessee of the Equipment pursuant hereto. 5. During the Lease Term, the Equipment will be used by Lessee only for the purpose of performing one or more essential governmental or proprietary functions of Lessee consistent with the permissible scope of Lessee's authority. 6. During the Lease Term, if and to the extent requested by Lessor, Lessee will annually provide Lessor with current available financial statements, budgets, proof of appropriation for the ensuing fiscal year, and such other financial information relating to the ability of Lessee to continue this Lease as may reasonably be requested by Lessor. ARTICLE III. LEASE OF EQUIPMENT Section 3.01. Demise of Equipment. Lessor hereby demises, leases, and lets to Lessee, and Lessee rents, leases, and hires from Lessor, the Equipment in accordance with the provisions of this Lease, to have and to hold for the Lease Term. -3- ARTICLE IV. LEASE TERM Section 4.01. Duration of the Lease Term. The Lease Term shall commence on the Commencement Date and shall terminate as provided in Section 4.02 hereof. In the event that the Lessee shall determine, for any reason, to not exercise its annual right to extend this Lease, effective on December 31 of any Fiscal Year, the Lessee shall give written notice to such effect to the Lessor not later than November 30 of such Fiscal Year; provided, however, that a failure to give such notice shall not constitute a default, nor result in any liability on the part of the Lessee except as provided in Section 6.07 herein. Lessee has the unilateral annual right to extend the Lease Term during the period shown on Schedule D Such extension shall automatically occur upon Lessee's budgeting and appropriating the Lease payments for the ensuing Fiscal Year. Section 4.02. Termination of Lease Term. The Lease Term will terminate upon the earliest of the following events: 1. On June 30 of any year of the Lease in which there is an Event of Nonappropriation and failure to extend the Lease Term beyond the current year. 2. The exercise by Lessee of the option to purchase Lessor's interest in the Equipment granted under the provisions of Article XI of this Lease; 3. The termination of this Lease by reason of damage to or the destruction or condemnation of the Equipment as provided in Section 9.02 hereof; 4. An event of default by Lessee and Lessor's election to terminate this Lease under Article XIII; or 5. The conveyance of the Equipment to the Lessee upon payment by Lessee of all Rental Payments required to be paid by Lessee hereunder for the entire maximum Lease Term. ARTICLE V. ENJOYMENT OF EQUIPMENT Section 5.01. Covenant of Quiet Enjoyment. Lessor hereby covenants to provide Lessee during the Lease Term with quiet use and enjoyment of the Equipment, and Lessee shall during the Lease Term peaceably and quietly have and hold and enjoy the Equipment, without suit, trouble, or hindrance from Lessor, except as expressly set forth in this Lease. -4- Section 5.02. Inspection of Equipment. Lessor shall have the right, at reasonable times during the business hours and following reasonable notice to Lessee, to enter into and upon the property of Lessee for the purpose of inspecting the Equipment. ARTICLE VI. RENTAL PAYMENTS Section 6.01. Rental Payments to Constitute Currently Budgeted Expenditures of Lessee. Lessor and Lessee acknowledge and agree that the Rental Payments and other amounts hereunder shall constitute current expenditures of Lessee payable in the Fiscal Years for which funds are appropriated for the payment thereof. Lessee's obligations under this Lease shall be from year to year only and shall not constitute a multiple-fiscal year direct or indirect debt or other financial obligation of Lessee or an obligation of Lessee payable in any Fiscal Year beyond the Fiscal Year for which funds are appropriated for payment thereof or payable from any funds of Lessee other than funds appropriated for the payment of current expenditures. Lessee shall be under no obligation whatsoever to exercise its option to purchase Lessor's interest in the Equipment. No provision of this Lease shall be construed to pledge or to create a lien on any class or source of Lessee moneys. Section 6.02. Payment of Rental Payments; Amount. Lessee shall pay Rental Payments, exclusively from legally available funds, in lawful money of the United States of America, to the Lessor, at its principal office (subject to change upon notification from Lessor) during the Lease Term as hereinafter provided. The Rental Payments during the Lease Term shall be the amounts in the "Total Rental Payment" column as set forth in Schedule D attached hereto and made a part hereof, as it may be amended hereunder. Lessee shall have the option, on any date on which a Rental Payment is due, to make to an advance Rental Payment. Advance Rental Payments may be made in any amount. The Remaining Principal Balance, shown in Schedule C hereto, shall be decreased by any such advance Rental Payments. After each such advance Rental Payment, each subsequent Rental Payment, including the amounts attributed to principal and interest, and the Option Price, shall be decreased proportionately. Schedule C shall be amended as necessary to reflect such decreased Rental Payments and Option Price. Section 6.03. Interest Component. A portion of each Rental Payment is paid as, and represents payment of, interest, and Schedule C hereto sets forth the interest component of each Rental Payment during the Lease Term. Section 6.04. Rental Payments to be Unconditional. Notwithstanding any dispute between Lessee and Lessor, any Vendor, or any other person, Lessee shall make all payments of Rental Payments when due and shall not withhold any Rental Payments pending final resolution of such dispute nor shall Lessee assert any right of set-off or -5- counterclaim against its obligation to make such payments required under this Lease. Lessee's obligation to make Rental Payments during the Lease Term shall not be abated through accident or unforeseen circumstances. Section 6.05. Continuation of Lease by Lessee. Lessee hereby declares its current need for the Equipment, and further determines and declares its expectation that the Equipment will (so long as it is subject to the terms hereof) adequately serve the needs for which it is being acquired throughout the maximum Lease Term of this Lease. Lessee hereby agrees and determines, based on Lessee's good faith estimate as of the date hereof, that the Rental Payments hereunder during the maximum Lease Term represent the fair value of the use of the Equipment; and that the Option Price represents the fair purchase price of the Equipment at the time of exercise of the purchase option. The Lessee hereby determines that, to the best of its knowledge, based on Lessee's good faith estimate as of the date hereof, the Rental Payments do not exceed a reasonable amount. Section 6.06. Nonappropriation. Lessor and Lessee acknowledge and agree that Lessee is not obligated under this Lease to make any payments in any Fiscal Year beyond the Fiscal Year for which funds are appropriated for the payment thereof or to make payments from any funds of Lessee other than funds appropriated for the payment of current expenditures. All payment obligations of Lessee under this Lease, including, without limitation, Lessee's obligation to pay Rental Payments, are from year to year only and do not constitute a multiple-fiscal year direct or indirect debt or other financial obligation of Lessee. In the event Lessee does not extend the Lease Term beyond the end of any Fiscal Year, Lessor shall have all rights and remedies to take possession of the Equipment and to recover any unpaid Rental Payments budgeted, appropriated, and owed by Lessee for the then current Fiscal Year. Section 6.07. Lessor's Right To Perform For Lessee. If Lessee fails to make any payments required hereunder during the Lease Term, other than Rental Payments, or fails to perform or comply with any of its covenants or obligations herein contained, Lessor or its assignee may at its election, following ten (10) days' prior written notice to Lessee of its intention to do so, make such payment or perform or comply with such covenant or obligation. Lessor or its assignee performing or complying with such covenants or obligations, as the case may be, shall be entitled to reimbursement by Lessee for all reasonable expenses incurred in connection therewith, together with interest thereon at the rate of eleven percent (11%) per annum, to the extent that amounts therefor have been previously budgeted and appropriated by Lessee for this Lease and are available for the payment thereof. In the event of the return of any of the Equipment, in addition to preparing the Equipment for shipping and paying the delivery cost, Lessee will also return to Lessor the maintenance records and other documents relating to such Equipment. -6- ARTICLE VII. TITLE OF EQUIPMENT; LIEN; SECURITY INTEREST; PERSONAL PROPERTY Section 7.01. Title to the Equipment. During the Term of this Lease and so long as Lessee is not in default under Article XIII, legal title to the Equipment and any and all repairs, replacements, substitutions and modifications to it shall be in Lessee. Upon termination of this Lease pursuant to subsections 1, 3 or 4 of section 4.02, full and unencumbered legal title to the Equipment shall pass to Lessor, and Lessee shall have no further interest therein. In such event, Lessee shall execute and deliver to Lessor such documents as Lessor may request to evidence the passage of legal title to the Equipment to Lessor and the termination of Lessee's interest therein, and upon request by Lessor shall deliver possession of the Equipment to Lessor pursuant to Section 11.2. Upon termination of this Lease through exercise of Lessee's option to purchase pursuant to Article XI or through payment by Lessee of all Rental Payments and other amounts relating thereto, Lessor's security or other interest in the Equipment shall terminate, and Lessor shall execute and deliver to Lessee such documents as Lessee may request to evidence the termination of Lessor's security or other interest in the Equipment. Section 7.02. Security Interest. Lessee grants to Lessor a continuing, first priority security interest under the Uniform Commercial Code in the Equipment, the proceeds thereof and all repairs, replacements, substitutions and modifications thereto or thereof made pursuant to Section 8.02, in order to secure Lessee's payment of all Rental Payments due during the Term of this Lease and the performance of all other obligations herein to be performed by Lessee. Lessee will join with Lessor in executing such financing statements or other documents and will perform such acts as Lessor may request to establish and maintain a valid first lien and perfected security interest in the Equipment. If requested by Lessor, Lessee shall conspicuously mark the Equipment with appropriate lettering, labels or tags, and maintain such markings during the Term of this Lease, so as clearly to disclose Lessor's security interest in the Equipment. Section 7.03. Liens. During the Term of this Lease, Lessee shall not, directly or indirectly, create, incur, assume or suffer to exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect to the Equipment, other than the respective rights of Lessor and Lessee as herein provided and Permitted Encumbrances. Except as expressly provided in this Article, Lessee shall promptly, at its own expense, take such action as may be necessary duly to discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim if the same shall arise at any time. Lessee shall reimburse Lessor for any expense incurred by Lessor in order to discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim. Section 7.04. Personal Property. The Equipment is, and shall at all times be and remain, personal property notwithstanding that the Equipment or any part thereof may be, or may hereafter become, in any manner affixed or attached to, or imbedded in, or permanently resting upon, real property or any buildings thereon or any fixtures, or attached in any manner to what is permanent as by means of cement, plaster, nails, bolts, screws or otherwise. ARTICLE VIII. MAINTENANCE; MODIFICATION; TAXES; INSURANCE AND OTHER CHARGES Section 8.01. Maintenance of Equipment by Lessee. Lessee agrees that at all times during the Lease Term Lessee will, at Lessee's own cost and expense, maintain, preserve, and keep the Equipment or cause the Equipment to be maintained, preserved, and kept with the appurtenances and every part and parcel thereof, in good repair, working order, and condition, subject to normal wear and tear, and that Lessee will from time to time make or cause to be made all necessary and property repairs, replacements, and renewals. Lessor shall have no responsibility in any of these matters or for the making of improvements or additions to the Equipment. Section 8.02. Modification or Alteration of Equipment. Lessee shall have the privilege at its own cost and expense of remodeling or making substitutions, additions, modifications, or improvements to the Equipment, and the same shall be included under the terms of this Lease as part of the Equipment and shall be deemed to be part of the Equipment described in Schedule B hereto; provided, however; that: 1. Such remodeling, substitutions, additions, modifications, or improvements shall not in any way materially damage the Equipment, nor cause it to be used for purposes other than those authorized under the constitutional provisions and laws applicable to Lessee; and 2. The Equipment, upon completion of remodeling, substitutions, additions, modifications, or improvements made pursuant to this Article VIII shall have a value not less than the value of the Equipment immediately prior to such remodeling, substitutions, additions, modifications, or improvements. Any property for which a substitution or replacement is made pursuant to this Section 8.02 shall become property of Lessee and may be disposed of by Lessee in any manner and in the sole discretion of Lessee. Lessor agrees that it will execute any documents necessary to enable Lessee to dispose of such property. Lessee will not permit any mechanic's or other lien to remain against the Equipment for labor or materials furnished in connection with any remodeling, substitutions, additions, modifications, improvements, repairs, renewals, or replacements so made by Lessee. -8- Section 8.03. Taxes. Lessee represents that it is exempt from federal, state, property and/or local tax assessment, and therefore, taxes shall not be charged to or paid by Lessee with respect to the Equipment. Section 8.04. Liability Insurance. Upon ordering any Equipment and prior to receipt of possession of the Equipment, Lessee shall take such measures as may be necessary to ensure that any liability for injuries to or death of any person or damage to or loss of property arising out of or in any way relating to the condition or the operation of the Equipment or any part thereof, is covered by a blanket or other general liability insurance policy maintained by Lessee, with a coverage limit of not less than $150,000 per person and $600,000 per occurrence. The Net Proceeds of all such insurance shall be applied toward extinguishment or satisfaction of the liability with respect to which any Net Proceeds may be paid. Lessor shall be named as an "additional named insured" on such policies of insurance, which shall be maintained in an amount of not less than $2,750,000. Section 8.05. Property Insurance. Upon receipt of possession of any Equipment, Lessee shall have and assume the risk of loss with respect thereto. Lessee shall procure and maintain continuously in effect during the Term of this Lease, all-risk insurance, subject only to the standard exclusions contained in the policy, in such amount as will be at least sufficient so that a claim may be made for the full replacement cost of any part of the Equipment damaged or destroyed and to pay the applicable Option Price of the Equipment. Such insurance may be provided by a rider to an existing policy or under a separate policy. Such insurance may be written with customary deductible amounts. Section 8.06. Worker's Compensation Insurance. If required by Colorado law, Lessee shall carry worker's compensation insurance covering all employees on, in , near or about the Equipment, and upon request, shall furnish to Lessor certificates evidencing such coverage throughout the Term of this Lease. Section 8.07. Requirements for All Insurance. All insurance policies (or riders) required by this Article shall be taken out and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business the Colorado; and shall contain a provision that the insurer shall not cancel or revise coverage thereunder without giving written notice to the insured parties at least ten (10) days before the cancellation or revision becomes effective. Each insurance policy or rider required by this Article shall name Lessor as an additional insured party and loss payee. Lessee shall deposit with Lessor policies (and riders) evidencing any such insurance procured by it, or a certificate or certificates of the respective insurers stating that such insurance is in full force and effect. Before the expiration of any such policy (or rider), Lessee shall furnish to Lessor evidence that the policy has been renewed or replaced by another policy conforming to the provision of this Article, unless such insurance is no longer obtainable in which even Lessee shall notify Lessor of this fact. -9- Section 8.08. Self Insurance. Notwithstanding the provision of Sections 8.04 through 8.06, Lessee may elect to meet the requirements of any such section through self- insurance provided Lessee provides an adequate insurance fund set aside maintained out of its own funds and provided that Lessee also self-insures similar equipment on a regular basis. Section 8.09. Lessee's Negligence. Lessee assumes all risks and liabilities, whether or not covered by insurance, for loss or damage to any Equipment and for injury to or death of any person or damage to any property, whether such injury or death be with respect to agents or employees of Lessee or of the parties, and whether such property damage be to Lessee's property or the property of others, which is proximately caused by the negligent conduct of Lessee, its officers, employees and agents. ARTICLE IX. DAMAGE, DESTRUCTION AND CONDEMNATION; APPLICATION OF NET PROCEEDS Section 9.01. Damage, Destruction, and Condemnation. Unless Lessee shall have exercised its option to purchase the Equipment by making payment of the Option Price as provided in Article XI hereof, and if prior to the termination of the Lease Term (a) the Equipment or any portion thereof is destroyed (in whole or in part) or is damaged by fire or other casualty, or (b) title to, or the temporary use of, the Equipment or any part thereof or the estate of Lessee or Lessor in the Equipment or any part thereof shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm, or corporation acting under governmental authority, the Net Proceeds of any insurance claim or condemnation award shall be applied, at Lessee's option, to the prompt replacement, repair, restoration, modification, or improvement of the Equipment, with any balance of the Net Proceeds remaining after such work has been completed to be paid to Lessee, or the Net Proceeds shall be paid to Lessor together with such additional amounts as may be necessary to fully pay to Lessor the then applicable Option Price, to the extent such additional amounts have been budgeted and appropriated by Lessee and are legally available for such payment, and upon such payment of the Option Price, the Lease Term shall terminate and the interest of Lessor in the Equipment shall then be conveyed by Lessor to Lessee as provided in Article XI of this Lease. The excess of the Net Proceeds over the then applicable Option Price, if any, shall be retained by Lessee. Section 9.02. Insufficiency of Net Proceeds. If the Net Proceeds are insufficient to pay in full the cost of any replacement, repair, restoration, modification, or improvement referred to in Section 9.01 hereof, Lessee shall either (a) complete the work and pay any cost in excess of the amount of the Net Proceeds, to the extent such additional amounts have been budgeted and appropriated by Lessee under the Lease and are legally available for such payment, and Lessee agrees that if by reason of any such insufficiency of the Net Proceeds, Lessee shall make any payments pursuant to the provisions of this Section 9.02, -10- Lessee shall not be entitled to any reimbursement therefor from Lessor nor shall Lessee be entitled to any diminution of the amounts payable under Article VI hereof, or(b) Lessee shall pay to Lessor the amount of the then applicable Option Price, to the extent such additional amount has been budgeted and appropriated by Lessee under the Lease and is legally available for such payment, and, upon such payment, the Least Term shall terminate and the interest of Lessor in the Equipment shall then be conveyed by Lessor to Lessee as provided in Article XI of this Lease. If, by June 30 of the Fiscal Year in which an event specified in Section 9.01 hereof occurs (or June 30 of any subsequent Fiscal Year in which the insufficiency of Net Proceeds to replace, repair, restore, modify or improve the Equipment becomes apparent) the Board has not budgeted amounts sufficient to proceed under either clause (a) or (b) of this Section 9.02, an Event of Nonappropriation shall be deemed to have occurred. ARTICLE X. DISCLAIMER OF WARRANTIES; VENDOR'S WARRANTIES; USE OF THE EQUIPMENT Section 10.01 Disclaimer of Warranties. LESSOR MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY, OR FITNESS FOR PARTICULAR PURPOSE OR FITNESS FOR USE OF THE EQUIPMENT, OR WARRANTY WITH RESPECT THERETO. In no event shall Lessor be liable for any incidental, indirect, special, or consequential damage in connection with or arising out of this Lease or the existence, furnishing, functioning, or Lessee's use of any item or products or services provided for in this Lease. Section 10.02. Vendor's Warranties. Lessor hereby irrevocably appoints Lessee its agent and attorney-in-fact during the Lease Term, so long as Lessee shall not be in default hereunder, to assert from time to time whatever claims and rights including warranties of the Equipment which Lessor may have against the Vendor of the Equipment. Lessee's sole remedy for the breach of such warranty, indemnification, or representation shall be against the Vendor of the Equipment, and not against Lessor, nor shall any such claim have any effect whatsoever on the rights and obligations of Lessee or Lessor with respect to this Lease. Lessee expressly acknowledges that Lessor makes, and has made, no representation or warranties whatsoever as to the existence or availability of any such warranties of the Vendor of the Equipment. Section 10.03. Use of the Equipment. Lessee will not install, use, operate, or maintain the Equipment improperly, carelessly, in violation of any applicable law, or in a manner contrary to that contemplated by this Lease. Lessee shall provide all permits and licenses, if any, necessary for the installation and operation of the Equipment, except to the extent that the failure to obtain such permits or licenses will not have a material adverse effect on the operation of the Equipment. In addition, Lessee agrees to comply in all -11- material respects (including, without limitation, with respect to the use, maintenance, and operation of each item of the Equipment)with all laws of the State of Colorado and any other jurisdictions in which its operations involving any item of the Equipment may extent, and with any legislative, executive, administrative, or judicial body exercising any power or jurisdiction over the items of the Equipment; provided, however, that Lessee may contest in good faith the validity or application of any such law or rule in any reasonable manner which does not, in the opinion of Lessor, adversely affect the estate of Lessor in and to any of the items of the Equipment or its interest or rights under this Lease. ARTICLE XI. OPTION TO PURCHASE Section 11.01. Option to Purchase. Lessor's estate in the Equipment will be transferred, conveyed, and assigned to Lessee free and clear of any liens, claims, or encumbrances created by Lessor, and this Lease shall terminate: 1. On any payment date set forth in Schedule C upon payment by Lessee of the then applicable Option Price: or 2. If the Lease Term is terminated pursuant to Article IX of this Lease and if Lessee is not on such date in default pursuant to any term of this Lease and upon payment to Lessor of the then applicable Option Price. Section 11.02. Return of Equipment. Upon the expiration or termination of this Lease, other than pursuant to Section 11.01 hereof or to subsection 4.02(2) or 4.02(5) of Article IV hereof, the Equipment shall be returned to Lessor in good working order and repair, subject to normal wear and tear, at a place designated by Lessor within the State of Colorado. The reasonable cost of delivering the Equipment to Lessor shall be borne by Lessee. ARTICLE XII. ASSIGNMENT, SUBLEASING, IDENTIFICATION MORTGAGING AND SELLING Section 12.01 Assignment by Lessor. This Lease, and the right to receive payments from Lessee hereunder, may be assigned in whole or in part to one or more assignees by Lessor at any time subsequent to its execution without the necessity of obtaining the consent of Lessee. Lessor agrees to give notice of assignment to Lessee and upon receipt of such notice Lessee agrees to make all payments to the assignee designated in the assignment, notwithstanding any claim, defense, setoff, or counterclaim whatsoever (whether arising -12- from a breach of this Lease or otherwise) that Lessee may from time to time have against Lessor or the assignee. The parties do not contemplate that this Lease will be assigned by the Lessor, or any subsequent assignee of the Lessor, for the purpose of obtaining financing by the issuance of any securities or other obligations. If the Lease is so assigned by the Lessor or any subsequent assignee of the Lessor, the Lessor or its assignee shall first obtain the permission of the Lessee,which permission may be withheld at Lessee's sole discretion, and the Lessor or its assignee shall be responsible for compliance with all applicable Federal and State securities law. Section 12.02. Assignment and Subleasing by Lessee. This Lease and the interest of Lessee in the Equipment may not be assigned or encumbered by Lessee except with the consent of the Lessor, which consent shall not be unreasonably withheld. The Equipment, or an interest therein, may be subleased without the consent of the Lessor but subject to the satisfaction of each of the following conditions: 1. This Lease, and the obligations of Lessee to make Rental Payments hereunder shall, at all times during the Lease Term, remain obligations of Lessee; 2. Lessee shall,within thirty (30) days after the delivery thereof, furnish or cause to be furnished to Lessor, a true and complete copy of each sublease; 3. No sublease by Lessee shall cause the Equipment to be used for a purpose other than the performance of governmental or proprietary function by or on behalf of the State of Colorado or a political subdivision thereof authorized to perform such function under the provisions of the Constitution of the State of Colorado Revised Statutes, as amended; and 4. Lessee must give notice of the location of the Equipment following the sublease and execute or obtain any additional financing statements required as a result of the relocation of the Equipment. ARTICLE XIII. EVENTS OF DEFAULT AND REMEDIES Section 13.01. Events of Default Defined. The following shall be "events of default" under this Lease, and the terms "events of default" and "default" shall mean whenever they are used in this Lease, any one or more of the following events: 1. Failure by Lessee to pay any Rental Payment or other payment required to be paid hereunder at the time specified herein for a period of ten (10) days after written -13- notice specifying such failure and requesting that it be remedied is given by Lessor to Lessee: 2. Failure by Lessee to observe and perform any covenant,condition or agreement on its part to be observed or performed, other than as referred to in Section 13.01(1), for a period of thirty(30)days after written notice specifying such failure and requesting that it be remedied is given to Lessee by Lessor,unless Lessor shall agree in writing to any extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period,Lessor will not withhold its consent to an extension of such time if corrective action is instituted by Lessee within the applicable period and diligently pursued until the failure is corrected. The foregoing provisions of this Section 13.01 are subject to the following limitations: (i) the obligations of Lessee to pay the Rental Payments provided in Section 6.02 hereof shall be subject to the provisions of Section 6.06 hereof with respect to nonappropriation; and (ii) if by reason of force majeure Lessee is unable in whole or in part to carry out any agreement on its part herein contained, other than the obligations on the part of Lessee contained in Article VI hereof, Lessee shall not be deemed in default during the continuance of such inability. The term "force majeure" as used herein shall mean, without limitation, the following: acts of God; strikes, lockouts or other industrial disturbances; acts of public enemies; orders or restraints of any kind of the government of the United States of America or of the State of Colorado or any of their departments, agencies or officials, or any civil or military authority; insurrections; riots; landslides; earthquakes; fires; storms; droughts; floods; explosions; breakage or accident to machinery, transmission pipes or canals; or any other cause or event not reasonably within the control of Lessee. Section 13.02. Remedies on Default. Whenever any event of default referred to in Section 13.01 hereof shall have happened and be continuing, the Lessor shall have the right, at its option without any further demand or notice, to take one or any combination of the following remedial steps: (a) With or without terminating this Lease, retake possession of and title to the Equipment and sell, lease or sublease the Equipment for the account of Lessee, holding Lessee liable for the unpaid Rental Payments through the end of the then current Fiscal Year; and (b) Take whatever action at law or in equity may appear necessary or desirable to enforce its rights as the owner of the Equipment. (c) Collect all costs incurred by Lessor in enforcing its rights hereunder, including court costs and reasonable attorneys' fees. Section 13.03. No Remedy Exclusive. Subject to the provisions of Section 13.02 hereof, no remedy herein conferred upon or reserved to Lessor is intended to be exclusive, -14- and every such remedy under this Lease for now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle Lessor to exercise any remedy reserved to it in this Article XIII, it shall not be necessary to give any notice, other than such notice as may be required in this Article XIII. ARTICLE XIV. MISCELLANEOUS Section 14.01. Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or mailed by registered mail, postage prepaid, to the parties at their respective principal place of business. For purposes of this Lease, the Lessor's principal place of business is: 205 W. Oak Street, Fort Collins, CO 80521. For purposes of this Lease, the Lessee's principal place of business is: 915 10t° Street, P.O. Box 758, Greeley, CO 80632. Section 14.02. Binding Effect. This Lease shall inure to the benefit of and shall be binding upon Lessor and Lessee and their respective successors and assigns. Section 14.03. Severability. In the event any provision of this Lease other than the provisions of Article VI regarding the payment of Rental Payments and the Provisions of this Lease requiring transfer of Lessor's interest in the Equipment to the Lessee as described in Sections 4.02(2),4.02(5) and 11.01, shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 14.04. Amendments, Changes, and Modifications. This Lease may be amended by the Lessor and the Lessee, and any such amendment shall be in writing and executed with the same formalities as this Lease. Section 14.05. Execution in Counterpart. This Lease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 14.06. Applicable Law. This Lease shall be governed by and construed in accordance with the laws of the State of Colorado. This lease shall not constitute a waiver of the Colorado Governmental Immunity Act. -15- Section 14.07. Captions. The captions or headings in this Lease are for convenience only and in no way define, limit, or describe the scope or intent of any provisions or sections of this Lease. Section 14.08. General. This Lease is intended as the complete integration of all understandings between the parties. No prior or contemporaneous addition, deletion or other amendment hereto shall have any force or effect whatsoever, unless embodied herein in writing. No subsequent novation, renewal, addition, deletion or other amendment hereto shall have any force or effect unless embodied in a written contract executed by the parties. Section 14.09. Special Provisions. 1. It is expressly understood and agreed that the enforcement of the terms and conditions of this Lease, and all rights of action relating to such enforcement, shall be strictly reserved to the undersigned parties or their assignees, and nothing contained in this Lease shall give or allow any claim or right of action whatsoever by any other person not included in this Lease. It is the express intention of the undersigned parties that any entity other than the undersigned parties or their assignees receiving services or benefits under this Lease shall be an incidental beneficiary only. 2. The parties hereby agree that neither has made or authorized any agreement with respect to the subject matter of this instrument other than expressly set forth herein, and no oral representation, promise, or consideration different from the terms herein contained shall be binding on either party, or its agents or employees, hereto. This Lease embodies all agreements between the parties hereto and there are no promises, terms, conditions, or obligations referring to the subject matter whereof other than as contained herein. 3. No portion of this Lease shall be deemed to constitute a waiver of any immunities the parties or their officers or employees may possess, nor shall any portion of this Lease be deemed to have created a duty of care which did not previously exist with respect to any person not a party to this Lease. The parties hereto acknowledge and agree that no part of this Lease is intended to circumvent or replace such immunities. -16- not a party to this Lease. The parties hereto acknowledge and agree that no part of this Lease is intended to circumvent or replace such immunities. IN WITNESS WHEREOF. The parties hereto have executed this Agreement on the day first above written. [SEAL] LESSOR: First National tank Attest: By: Sherman Harrison, Assistant President [SEAL] ' _fiats._ LESSEE: County of W ld Attest: I�, �aw,� y' 1 Glenn Vaad, Chairman, oard of County '%���`�� Commissioners of the County of Weld / • it i pry- o f BY: . ,.,i . • 1 ' `� , (O5/O/(2004 DEPUTY CLERK TO TRH'!!' '• -16- SCHEDULE A RECEIPT AND ACCEPTANCE CERTIFICATE FORMING PART OF LEASE BETWEEN FIRST NATIONAL BANK, LESSOR, AND_ County of Weld May 2 , 2002 A. EQUIPMENT 1 New JD 270C-LC Excavator with Kiss Hitch Serial #FF270CX071051 TOTAL EQUIPMENT COST: $176,050.00 EQUIPMENT LOCATION: 1111 H STREET GREELEY, CO 80632 LESSEE, under the terms of Equipment Lease Agreement and Equipment Lease Schedule above dated, hereby acknowledges receipt in good condition of all equipment above described and accepts delivery as of this date. Further, LESSEE agrees that LESSOR has fully and satisfactorily performed all covenants and conditions to be performed under said Equipment Lease Agreement, and that LESSEE selected the vendor and equipment so received. Further LESSOR has made no representations or warranties whatsoever, directly or indirectly, as to fitness for use, applicability, merchantability, condition, quality, or other wise, of such equipment. LESSEE agrees to pay the rent provided under the Lease absolutely and unconditionally and specifically waives rights to make any claim against LESSOR or to interpose or assert any such defense, counterclaim, or set- off. LESSEE confirms that they (it) will begin payment as specified in the Equipment Lease Schedule and/or pursuant to the Interim Funding provisions of said Equipment Lease Agreement. DATE: May 2, 2002 FIRST NATIONAL BANK COUNTY OF WELD LESSOR LESSEE BY: BY: Si ` ' S HARRISON GLENN VA• I,CH• IRMAN ASSISTANT VICE PRESIDENT BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD 0,5/6//..203.2) -17- SCHEDULE B COLLATERAL LISTING 1 NEW JD 270C-LC EXCAVATOR WITH KISS HITCH SERIAL #FF270CX071051 -18- SCHEDULE C AMORTIZATION SCHEDULE Date: May 2, 2002 Payment Due Date Total Payment Option Price/Balance 1 05-31-2002 2,761.92 173,847.58 2 06-30-2002 2,761.92 171,657.21 3 07-31-2002 2,761.92 169,478.45 4 08-31-2002 2,761.92 167,292.29 5 09-30-2002 2,761.92 165,080.37 6 10-31-2002 2,761.92 162,879.27 7 11-30-2002 2,761.92 160,652.84 8 12-31-2002 2,761.92 158,436.70 9 01-31-2003 2,761.92 156,213.03 10 02-28-2003 2,761.92 153,930.45 11 03-31-2003 2,761.92 151,691.47 12 04-30-2003 2,761.92 149,428.26 13 05-31-2003 2,761.92 147,173.99 14 06-30-2003 2,761.92 144,895.93 15 07-31-2003 2,761.92 142,626.26 16 08-31-2003 2,761.92 140,348.88 17 09-30-2003 2,761.92 138,048.38 18 10-31-2003 2,761.92 135,755.45 19 11-30-2003 2,761.92 133,439.85 20 12-31-2003 2,761.92 131,131.26 21 01-31-2004 2,761.92 128,813.65 22 02-29-2004 2,761.92 126,459.99 23 03-31-2004 2,761.92 124,126.51 24 04-30-2004 2,761.92 121,771.56 25 05-31-2004 2,761.92 119,422.20 26 06-30-2004 2,761.92 117,051.83 27 07-31-2004 2,761.92 114,686.48 28 08-31-2004 2,761.92 112,313.12 29 09-30-2004 2,761.92 109,919.44 30 10-31-2004 2,761.92 107,529.92 31 11-30-2004 2,761.92 105,120.56 32 12-31-2004 2,761.92 102,714.79 33 01-31-2005 2,761.92 100,301.79 34 02-28-2005 2,761.92 97,847.65 35 03-31-2005 2,761.92 95,418.14 36 04-30-2005 2,761.92 93,000.00 -19- SCHEDULE D EQUIPMENT LEASE SCHEDULE Between FIRST NATIONAL BANK, as LESSOR, and Weld County , as LESSEE. LEASE 1279262 SCHEDULE 50 REFERENCE N/A ._ A. EQUIPMENT LEASED— 1 New JD 270C-LC Excavator with Kiss Hitch Serial#FF270CX071051 SEE ATTACHED EXHIBIT N/A_AND SCHEDULE B TOTAL EQUIPMENT COST: $ 176,050.00 EQUIPMENT LOCATION: 1111 H STREET GREELEY, CO 80632 B. TERM AND PAYMENTS The term of this lease schedule,with respect to each item of equipment listed herein, receipt whereof is hereby acknowledged and accepted, is for a term of 3 years commencing on May 2 , 2002. FIRST RENTAL IS DUE ON May 31 , 2002. The term and number of payments are subject to the annual review of Equipment Lease/Purchase Agreement. Successive rental is due on each monthly anniversary. Aggregate rentals due $99,429.12 . LESSEE shall pay successive rental payments as follows: Rental Payments of 36 @ $2,761.92 A late charge of five percent of the payment amount will be assessed on all lease payments which are thirty(30) or more days past due. C. PURCHASE OPTION Lessee shall have the option to purchase equipment described herein at the end of the lease term for $93,000.00 . This schedule is attached to an made a part of that certain Equipment Lease Agreement dated May 2 , 2002, between the parties hereto, and all terms and conditions of said Equipment Lease Agreement are made a part hereof. DATED: May 2, 2002 FIRST NATIONAL BAN , LESSOR County of Weld, LESSEE By: By ,r Sherman Harrison Glenn Vaa , a and of County Assistant Vice President Commissioners of the County of Weld (05/o dal) -20- SCHEDULE E May 2, 2002 First National Bank ATTN: Sherman Harrison 205 West Oak Street P.O. Box 578 Fort Collins, CO 80522-0578 Re: Equipment Lease-purchase Agreement Dear Mr. Harrison: As counsel to the County of Weld ("Lessee"), I have reviewed the Equipment Lease-Purchase Agreement described above ("Agreement") between the Lessee and First National Bank ("Lessor"), dated as of May 2, 2002, and such other document and records as I have considered to be relevant for purposes of providing this opinion. Based upon my review, I am of the opinion that: 1. The Lessee is a corporate and political subdivision of the State of Colorado. Lessee's obligations under the Agreement constitute an obligation of a political subdivision of the State. 2. Lessee is authorized and has the power under State law to enter into the Agreement and to carry out its obligations thereunder in accordance with its terms. 3. The Agreement has been duly authorized, approved, and executed by and on behalf of Lessee. It is a valid and binding contract of Lessee enforceable in accordance with its terms, except to the extent limited by state and federal laws affecting remedies and by bankruptcy, reorganization, or other laws of general application relating to or affecting the enforcement of creditors' rights. 4. The authorization, approval, and execution of the Agreement and the proceedings of Lessee relating thereto have been performed in accordance with applicable open meeting and public bidding laws. 5. To the best of my knowledge, there is no litigation, action, suit, or proceeding pending before any court, administrative agency, arbitrator, or governmental body against Lessee that challenges the organization or existence of Lessee; the authority of its officers; the proper authorization, approval, and execution of the Agreement; the appropriation of moneys to make payments under the Agreement for the current fiscal year; or the ability of Lessee otherwise to perform its obligations under the Agreement. Letter, Harrison May , 2002 Page 2 This letter is furnished by me as counsel to Lessee and is solely for the benefit of the addressee. I understand that you are not relying upon me with respect to any opinion concerning treatment, for state or federal income tax purposes, of the rental and other payments to be made by Lessee under the Agreement, as to which I express no opinion. Please feel free to call me at (970) 356-4000, ext. 4390, if you have any questions or if I may be of other assistance in this matter. Sincerely, Bruce T. Barker Weld County Attorney pc: Jim Ringenberg Claud Hanes Don Warden Sherman Harrison amammanama I� First. Asi;rf6,/I Iier,°Yfet,/p„ Natonal `mall '`ra'Loa„� UCC FINANCING STATEMENT Small Business laming Group FOLLOW INSTRUCTIONS(front and back)CAREFULLY Bank A.NAME 8 PHONE OF CONTACT AT FILER!optional' •: `ame an• A. 205 West Oak Street P.O. Box 578 dress) Loan A Fort Collins,CO 80522-0578 dministration, First National Bank 970.482486i205 W Oak Street D1R Et'r 970-495.52,36 Lnx 970.495.9904 Fort Collins, Colorado 80522 - --- L 1. DEBTOR'S EXACT FULL LEGAL NAME-insert only one debtor name (la or lb� THE ABOVE SPACE W FOR FILING OFFICE USE ONLY )-do not ebbreviate or combine names la.ORGANIZATION'S NAME OR COUNTY OF WELD lb.INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME le.MAILING ADDRESS SUFFIX 1111 H STREET `I^ Id.TAX ID/: SSN OR EIN GREELEY STATE POSTAL CODE ADD'L INFO RE le.TYPE OF ORGANIZATION COUNTRY 8A-6000813 ORGANIZATION If.JURISDICTION OF ORGANIZATION CO 80632 USA DEBTOR COr•or 1g.ORGANIZATIONAL ID I,if any 2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME!insert only one debtor name(252 or 2b Colorado 2D.ORGANIZATION'S NAME )'do not abbreviate or combine names ® NONE OR 2b.INDIVIDUAL'S LAST NAME FIRST NAME 2c.MAILING ADDRESS MIDDLE NAME SUFFIX CITY 2d.TAX ID F: SSN OR EIN STATE POSTAL CODE ORD'L INFO RE 2e.TYPE OF ORGANIZATION OF ORGANIZATION COUNTRY ORGANIZATION 2f.JURISDICTION DEBTOR 2g.ORGANIZATIONAL ID/,if any 3.SECURED PARTY'S NAME(or NAME of TOTAL ASSIGNEE of ASSIGNOR e secured party name(3a or 36) 3a.ORGANIZATION'S NAME ® NONE S/P)-Insert orgy on DR FIRST NATIONAL BANK 3b.INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME 30.MAILING ADDRESS SUFFIX - 205 WEST OAK STREET CITY STATE POSTAL CODE 4. FINANCING STATEMENT coven the following collateral. FORT COLLINS COUNTRY 1 NEW JD 270C-LC EXCAVATOR WITH KISS HITCOH SERIAL 80521 USA NFF270CX071G51 ALTERNATIVE DESIGNATION Iif applicable): ❑ ERN TIVE DISG LESSEE/LESSOR O CONSIGNEE/CONSIGNOR ESTA E q CORDS. ZEX k to be fiil[for record!(or recorded)in tM R O BAILEE/BAILOfl . OPTIONAL FILER REFERENCE DATA EpL C k to REQUEST SREPORT) ❑ SEUEgBWER O AG.LIEN O NON-UCC FILING If a lioab(sl (ADDITIONAL FEET SEARCH gEPOgT SI n �' Pm °'1i)❑ M Debtor❑ Debtor 1 ❑ Debtor 2 Bankers Swam',Inc.,St.Cloud,MN Form UCC-1-LAZ 5/30/2001 :BTOR COPY—NATIONAL UCC FINANCING STATEMENT(FORM UCC71 (REV. 07/29/98) Hello