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733349 RESOLUTION NO. 7,333 RESOLUTION AUTHORIZING THE EXECUTION OF A MUNICIPAL LEASE BETWEEN THE CITY OF LITTLE ROCK AND MANAGEMENT IMPROVEMENT CORPORATION OF AMERICA (MICA) /STEPHENS INC., AND AUTHORIZING THE EXECUTION OF AN ASSOCIATED SUBLEASE AGREEMENT BETWEEN THE CITY OF LITTLE ROCK AND THE LITTLE ROCK AMBULANCE AUTHORITY D /B /A METROPOLITAN EMERGENCY MEDICAL SERVICES (MEMS); AND FOR OTHER PURPOSES. WHEREAS, the City of Little Rock, Arkansas (the "City "), pursuant to Act No. 142 of the Acts of the General Assembly of the State of Arkansas for the year 1975 (the "Act ") is authorized to establish public facilities boards for the purposes set forth in the Act, which includes providing Emergency Medical Services and other Medical Services, and assisting in the financing of Emergency Medical Health Care Facilities and other facilities related thereto within or near the City; and WHEREAS, the City of Little Rock, Arkansas, pursuant to the provisions of Act No. 23 of the Acts of the General Assembly of the State of Arkansas for the year 1981 ( "the Municipal Ambulance Licensing Act ") was authorized and empowered to own, operate, permit, control, manage, franchise, license and /or regulate emergency medical services, emergency medical technicians, emergency and non - emergency ambulances, ambulance companies, their respective properties, facilities, equipment, personnel and /or any and all aspects attendant to providing emergency medical services and ambulance operations as deemed proper to provide for the health, safety and welfare of its citizens; and WHEREAS, the City has created and established the City of Little Rock, Arkansas, Emergency Medical Health Care Facilities Board, commonly known as the Little Rock Ambulance Authority d /b /a Metropolitan Emergency Medical Services by virtue of Ordinance No. 14,062 which was passed June 16, 1981; and 12 -/o O -/0 50 WHEREAS, the City established a regulated ambulance service system consistent with the Municipal Ambulance Licensing Act by virtue of Ordinance No. 14,511, passed September 20, 1983, which adopted the Public Utility Model for use in the City for the most cost - effective means available for achieving stable and reliable advanced life support ambulance service capability and insuring the continued and uninterrupted availability of such services in the City; and WHEREAS, the Little Rock Ambulance Authority (the "Authority ") and the City have entered into a contract for implementation of the public utility model advanced life support pre - hospital care system which provides, among other things, that the Authority shall seek long -term financing up to $2,016,000 for purposes of acquiring fully equipped ambulance units, communications equipment, a medical and central communications center, initial expendable supplies, and an estimated $400,000 in working capital; and WHEREAS, the City approved, adopted, and agreed to implement the municipal lease arrangement described in the Authority's report submitted on May 30, 1984 which was attached and made a part of Ordinance No. 14,681 adopted June 5, 1984 calling for implementation of the municipal lease arrangement; and WHEREAS, the City, the Authority and MICA have developed a Master Municipal Lease for purposes of acquiring the equipment needed by the Little Rock Ambulance Authority which calls for a total principal financial commitment not to exceed $2,016,000 to extend for a contract period of ten years; and WHEREAS, the Board of Directors of the City of Little Rock finds that the municipal lease agreement is necessary in order to accomplish the objectives of the public utility model for advanced life support pre - hospital care system previously mentioned; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY OF LITTLE ROCK BOARD OF DIRECTORS: 2 1. The Mayor and City Clerk of the City of Little Rock are hereby authorized to enter into a Master Municipal Lease Agreement with MICA which is acceptable to the Little Rock Ambulance Authority in substantially the form as attached hereto, identified as Exhibit A. 2. The Mayor -and City Clerk of the City of Little Rock are hereby authorized to enter into a sublease with the Little Rock Ambulance Authority embodying the terms and conditions of the Master Municipal Lease provisions relating to Ambulance Authority equipment and other conditions and agreements existing between the City and the Authority. ADOPTED: te, bruary 19, 1985 APPROVED: Mamas A./� JrrnATTEST: ,.0 /v 0797E 9 51 I ^r MASTER LEASE AGREEMENT WITH OPTION TO PURCHASE l 52 This Agreement, made this day of 1989, between al corporation, on its behalf and on behalf of a group of investors (referred to collectively as "Lessor ") and CITY OF LITTLE ROCK, ARKANSAS ( "Lessee "), a duly constituted political sut, division of the State of Arkansas; I WITNESSETH : Will; REAS, in connection with the operation of the Lessee's v.trious public functions, including its Emergency Medical Sor.vice, Lessee has determined that a need exists for th,: personal property described in Schedule(s) attached hereto (the "E:quipwenL "); and WHEREAS, Lessee is authorized by the laws of the State of ;;tkansas to enter into this Agreement; and i WllERE:AS, Lessee desires to lease the Equipment from Lessor lor, the period set forth herein, thereafter acquiring title to the Equipment, pursuant to the terms and conditions and for the purposes described herein; and WHEREAS, Lessee has requested Lessor to provide funding the lease and acquisition of the Equipment by Lessee; WHEREAS, Lessee intends to sublet its interest in certain -,t • the Equipment included under this Lease, to Lessee's [.mbulaiice Authority. i NOW, THEREFORE, for and in consideration ofI the premises contained herein, the parties agree as follows: i ARTICLE I DEFINITIONS t ' Section 101. Definitions. For purposes of this Agreement and all related documents, thei terms defined herein shall have the following meanings (unl(-ss the context clearly- requires otherwise): "Acquisition Fund" - The Fund established with the Trustee pursuant to the provisions of Article II hereof. I . _ t I; i. 5 3 "Agreement - This Master Lease Agreement with Option; to l Purchase and any amendments or, supplements hereto,,specifically i including Schedule(s) attached hereto.;' "Certificate(s) of Acceptance" - The certificate whic' :,us :;ee shall execute and deliver Lo Lessor, acknowledging that Lhe Equipment has been delivered to Lessee at the location dascribed in the; Schedule(s), has been fully inspected by an authorized representative of Lessee and 1 determined to 'be - ;,i.isfactory in all respects and in proper working order, and nas been' fully and finally accepted by Lessee under this' Agreement. In the event of the addition of any Equipment under t.h., terms of this Agreement by the execution of any additional , :Chedule(s), additional Certificates of Acceptance must be' arecuted and delivered on behalf of Lessee in thelsame manner. "Equipment" or "Unit" or "Units" The personal property' r,#::.;cribed in the Schedule(s) and any supplements] or amendments Lheteto and specifically covered tinder this Lease. Included or. Units acquired subsequent to, as well as on or prior to ,;r,cunencemunt of the Term, as set forth and distinguished on the :;cin >dule(s) attached hereto, so long as they are included under :_iris; Lease, by agreement of Lessee and Lessor. "Emergency Medical System" or "EMS" - The operations and - gnipment for providing ambulance and emergency medicall,. i.:eatment by the Ambulance Authority of the City of Little, tone s•:, Arkansas and located in Little Rock, Arkansas. "L.essce`" - City of Little Rock, Arkansasf a political :;ubllivisiou of the State of Arkansas. l ou its own behalf and on behalf of a group of investors or any .i :;uiviving, resulting or transferee corporation of Lessor, or ,Inysucce:ssors or assigns of Lessor. "Little Rock Ambulance Authority" or "Authority" - The dilly constituted authority created by ordinance of the Lessee for purpose of operating and overseeing the Emergency Medical >ystom. The Lessee shall sublease certain of the Equipment hereunder to the Authority and all obligations of Lesseel lereunder for such subleased Equipment, except those ,. obligations to appropriate revenues will be assumed and carried out by the Authority. Such sublease, however, will not relieve r lessee of its obligations hereunder. I• "Rent" - The basic payments payable by Lessee pursuant to Lhe provisions hereof during the Term of this 'Lease. Rent shall be paid by Lessee in consideration of the right to use '. 2 I t _ M �'. 54 the Equipment during the 'Perm and in consideration of the acquisition of the Equipment upon termination; hereof. Rent ::hall be payable in the amounts and at the times set forth in che, Exhibit A, subject to the provisions hereof relating to uuuappropriation of funds. "Replacement Termination Value" - As used in Section 404, f:cplacement 'Termination Value shall mean the purchase price or bride -in allowance received by Lessee, or EMS, 'for bona fide ::r,ie or trade -in of any Replaced Unit. "Schedule(s)" - The Schedules attached hereto (and made a I,;,rt hereof) as of the date hereof of equipment and any a(iditional or supplemental Schedules that might be subsequently .,t_L. ached. "Surety" - _ or any other :utity issuing a bond or other undertaking insuring t-he t)�,cformancc of Lessee hereunder. "'l'„rmination Value" - The schedule of amounts agreeable to and Lessee which Lessee may pay to Lessor to purchase p,,rticular items of Equipment as provided in Section 601 hereof. "Truoll:e" - Worthen Bank & Trust Company, N.A., Little Pock, Arkansas. ARTICLE II DEMISING CLAUSE, DURATION OF LEASE TERM; RENTAL PROVISIONS; ACQUISITION OF EQUIPMENT Section 201. Lease of Equipment. Lessor, for and in consideration of the covenants and ayreements: herein contained, on the part of Lessee to be kept ;,nd perfermed, agrees to and does hereby lease to Lessee, and Lessee agrees to and does hereby lease, take and accept from Lc, ,s0r the Equipment, subject to the terms, conditions and obligations set forth herein, for the 'Perm hereof. Section 202. Term. 'File Initial 'Perm of this Lease shall commence on the date of this Lease and shall end on December 31, 1985, the end of Lessee's current fiscal appropriations period. Each renewal P4e1-11k shall. commence immediately upon the expiration of the Initial 'Perm or the preceding renewal Term, as applicable, and each shall expire at the end of Lessee's then - current fiscal 3 appropriations period. In all events, this' Lease sha115 rJ j tenuinate on _ , 19 Each renewal shall be at the sole option of Lessee, notwithstanding any 'sublease. Any ;ucti renewal shall be automatic upon appropriation of funds as provided in Section 204(a)(ii), except as provided in Article V1 hereof, and shall occur without requirement of notice to or from Lessor or Lessee. Lessee may change the end of its fiscal appropriations period, and if that is done, the Term of this Lease shall change accordingly. action 203. Rent. Lessee agrees to pay to Lessor, as Rent for the use of the I ?yuipment during the Term, the sums designated as Rent in the F.whibit A. Section 204. Payment of Rent. (rc) Lessee agrees to pay to Lessor or its assignee the 1:•nt specified in Exhibit A. The Rent will be payable without u�,t.ice or demand at the principal office of the Trustee. Rent payments will commence on the first day of the.next calendar u:unth following execution of this Lease and continue thereafter un the first. day of each succeeding month during the Term or "fly renewal thereof. Rent payments shall be funded as follows: (i) The Little Rock Ambulance Authority, or its successors or assigns, shall pay, from all funds available to it, on behalf of Lessee, the rent payments reserved by Lessee in the sublease of Equipment from Lessee to the Little Rock Ambulance Authority; and (ii) Lessee shall pay from valid and proper appropriations from its general operating revenues, during any Term or renewal thereof, such amounts in excess of all the rental payments from the Little Rock Ambulance Authority as are required to make the Rent payments as they become due. (b) 'PHIS CONTRACT IS NOT A DEBT OR A PLEDGE OF THE FAITH AND CREDIT OF LESSEE WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY LIMITATION. 'PHIS CONTRACT IS PAYABLE SOLELY FROM REVENUES OF LESSEE AS SET FORTH HEREIN. LESSOR SHALL HAVE NO RIGHT TO COMPEL THE EXERCISE OF ANY TAXING POWER OF LESSEE TO MAKE PAYMENTS HEREUNDER, AND NO TAX REVENUE OR OTHER FUNDS OF LESSEE ARE PLEDGED TO THE MAKING OF PAYMENTS HEREUNDER EXCEPT REVENUES FROM THE SUBLEASE TO THE 4 / EMS. LESSEE HAS AGREED TO MAKE CERTAIN PAYMENTS FROM 5E CURRENT APPROPRIATIONS IN ADDITION TO REVENUES FROM THE EMS AS NECESSARY TO MAKE RENT PAYMENT'S, BUT HAS NOT PLEDGED ANY OF ITS GENERAL REVENUES. Section 205. Other Payments. (a) Lessee shall pay to Lessor all other amounts, liabilities and obligations that Lessee assumes or agrees to pay to Lessor or any other party hereunder. If Lessee shall fail to pay or discharge any obligation due other than the payment of rent specified in Section 209, then Lessor shall h:,ve the right to pay or discharge such obligation, and shall ti,,ve all rights, powers and remedies provided herein or by law, but failure of Lessor to pay or discharge any such obligation : ;hall not be treated as a failure to pay Rent or as an Event of Default under Section 1601. Lessee hereby agrees to pay and perform all of its obligations under this Agreement at its sole , -ost and expense and to pay all such sums at such times as they !wjy he duo to any party, without notice or demand. (b) Upon the occurrence of an Event of Default pursuant t,; Article XVI hereof, and only in such event, Lessor shall be euLitled to take and receive all sums held on deposit by the Lessee and its Authority, or the successor thereof, in an account with the Trustee entitled Replacement Equipment Fund (the "Replacement Fund "). The City or its Authority shall d,.-posit in such Replacement Fund not less than $__ _ per year during the 'Perm hereof. So long as no default has „ecun-ed hereunder, City or its Authority shall be permitted to use :Lich funds to purchase additional equipment for the EMS or to replace Equipment subject to this Lease. Lessee specifically pledges to Lessor as security for any payments due iu reunder the Replacement Fund, but such pledge shall not be poimuuted and shall not become effective until an Event of Dul;;ult shall have occurred hereunder. (c) Les:;ee and the Little Rock Ambulance Authority hereby ph-.d(Ae to Lessor, as additional security for the obligations of LOS!:ec Undertaken in this Agreement, a lien on all revenues and accounts receivable of the Authority now owned or hereafter acquired, subject only to a lien on such accounts receivable in f,vor of First Coimuercial Bank of Little Rock, N.A., as :security fur a debt of the Authority in an amount not to exceed $____ Lessee and Authority will execute all such d,)(-wnents as are .reasonably necessary to perfect such security interest in favor of Lessor. 5 > � •. ../.: T^ u";: i�_' �. C: Yiil. �l'.! LL: t :[:LY.Y4f1<.1N.:pbVYVnOtpsvvyCV _� Section 206. i Lessee agrees that its obligation to pay any amount as Rent or otherwise under this Agreement and to perform its other obligations hereunder shall be separate and independent covenants, agreements and obligations. Lessee's obligations to pay such amounts shall be absolute and unconditional and shall at all times continue unaffected unless the requirement therefor shall have been modified or terminated pursuant to an express provision of this Agreement. Lessee agrees that its , bligations hereunder shall not be subject to any abatement, reduction, setoff, defense, counterclaim, deduction or t.:coupmeut of any and all types whatsoever, in law or equity, for any reason whatsoever (hereinafter referred to as "Abatements.. including, without limitation, any Abatements due to any future or present claims arising under this Agr:�unent or otherwise against Lessor, or any assignee of I.,,::sor, or, against the manufacturer or seller of the Equipment .;r any unit thereof, or against any other person or entity. xcepC as otherwise expressly provided herein, this Agreement :Akali not terminate, nor shall the obligation of Lessee be affected, nor any Abatement thereof occur, by any reason of any damage to or defect in the Equipment, or any Unit or any pc,rtion thereof, or any loss or destruction of the same from any cause, any taking thereof by exercise of any governmental right, requisition or otherwise; any prohibition, limitation, fi:striction or prevention of Lessee's use thereof or any loss „t use_ i;r enjoyment thereof by any person (whether by paramount i.itle or otherwise); any default or other defect in the I). rJ otniancit of Lessor under this Agreement or under any other ,yreement whatsoever. M= M M W M W M M M 57 N Payments and Nonterminility. :;:ct_ ion 207. Acquisition of Equipment. (a) on the date of commencement of the Term hereof, t.•::sor shall deliver to Lessee, by deposit in a trust account in the nacre of Lessee, established with the Trustee, designated "Little Rock, Arkansas - Leased Equipment Acquisition Fund" (the "Ac(Iuisition Fund "), the sum of $2,013,000, to be applied t:u the acquisition of Units of Equipment in addition to the Units in the possession of Lessee on such date. (b) Moneys in the Acquisition Fund shall be expended for the acquisition, construction and installation of Units of ltguipment by and upon requisitions filed with the Trustee and with Lessor by Lessee, each of which shall contain: (1) The name of the person, firm or corporation to whom payment is to be made (which may be Lessee); 0 58 investments sADI be credited to the Oquisition Fund and any loss shall be charged to the Acquisition Fund. At such time as all Equipment to be purchased from the Acquisition Fund has received and accepted by Lessee, Lessee shall execute and tic: liver to Lessor and Trustee a final Certificate of Acceptance upon delivery of that final Certificate of Acceptance, 'trustee shall comply with the provisions of Section 3.04 of the Trust Indenture. ARTICLE III TITLE AND PURCHASE OF EQUIPMENT ,:ctioil 301. Title. Lessor shall retain title to the Equipment until Lessee !:all have made all the payments required hereunder and shall h:jv,, kept. and performed all its agreements contained herein, notwithstanding the possession and use of the Equipment by a:: herein provided. Any anti all additions to the i-;uipment ruin any and all replacements of the Equipment and all !!rats thereof shall constitute accessions to the Equipment and ::hall be subject to all the terms and conditions of this A,,recment, except as otherwise provided in Article V hereof. Gnr -t ion 302. Passage of Title. E::ct:pt. as otherwise specifically provided herein, when ku:;sor i:hali have received from Lessee all payments of Rent, ot-h,ar ;mtount:s required to be paid by Lessee hereunder, and .11t of Ltaaae's obligations herein contained shall have been performed, absolute right, title and interest in and to the I:(;uilrment shall pass to and vest in Lessee free of all liens .rid encuir�hrauces without any further payment by Lessee, and this Agreement shall thereupon terminate. It is the express intent of Lessor and Lessee that the purpose of this Agreement ll be the lease and purchase of the Equipment by Lessee, and :,h�ni the foregoing conditions have been satisfied, the closing „t such purchase shall occur at the offices of Lessee, at which rive lessor shall deliver to Lessee a bill of sale transferring i:itle to the Equipment (or the applicable Units thereof) to Lessee free from any lien or encumbrance created by or rising through Lessor, and such other documents or instruments as Le!;see stay reasonably request, but without other warranties, anrd shall deliver all warranties or guaranties of the manufacturer or manufacturers of the Equipment (or applicable Unit -.s thereof) to Lessee. In the event that this Agreement ::hnll be amended to include additional Equipment pursuant to t-he provisions of Article IV hereof, title to such Equipment . •... .. ..._ 4^SMY^l4'n L:;. n48_: S�LTp¢ ^_QIIfL _�v +eevnva .o.� ..�..��,.�.�.�. I I i59 ball be transferred to Lessee pursuant to this Section at the nd of the Term. ARTICLE IV REPLACEMENT OF EQUIPMENT n Section 901. Replacement of Equipment: So long as no default hereunder shall have occurred and,be continuing, Lessee shall have the right to replace Units of vqu ipment then covered by the terms of this Agreement, but only in aCCOrdnnce with the express provisions hereof. If Lessee shall desire to acquire any such new Units ( "New Units "), it :;hall give written notice thereof to Lessor, describing the proposed New Units, the proposed Units to be removed, and the ,,iicclive date of such replacement (the, "Effecti've Date "), and such notice must be received by Lessor not less; than 90 days p for to such Effective Date. Notwithstanding any other, provision hereof, Lessor and Lessee agree that Lessee shall be c:ntitla:il, from time to time during the term of this Agreement, tol acquire and install such New Units (at Lessee's sole' pease), and as may be desired by Lessee and approved byi fi -,ssor pursuant to the provisions hereof, provided, however,i that the acquisition and retention of any such New Units will n„+. adversely affect the operating capabilities of the F(:uipmenl. .rion 902. Requi rements for New Units. -e — -- Lessee agrees that any New Units shall: (a) have a fair market value which, in the reasonable opinion of Lessor, is not less than the fair marketl' value of the Units to be removed; (b) be free and clear of all liens except such as Lessor may consent to in writing; (c) have been manufactured by the manufacturers of the,' existing Units, or by any other manufacturer of; comparable and compatible equipment and approved by Lessor in writing; and i (d) be in good operating condition, repair and appearance:' I I I 9 _ I I i _ Section 403. Consent of Lessor and Surety. P0 At least 30 days prior to the proposed Effective Date„ I,o:;see must- receive the written consent of Lessor and the . Surety t:o the proposed New Units as required herein. If such i wi itten consent shall have been received, on the lEffective Date ,Illy New Units shall thereupon be deemed to be subject to the terms of this Agreement, and shall be deemed, "Equipment" fort the purposes of this Agreement and shall be covered by all the' provisions hereof. Lessee shall cause to bel delivered to appropriate bills of sale and such other documents or, instruments conveying title to Lessor as Lessor in it- reasonable judgment may require as to qny such New Units. So('tion 404. Termination as to Units. Notwithstanding any contrary provisions of this Lease,) duiiuq the initial Term or any renewal. Term, Lessee shall have) Iht• authority to purchase equipment- and personal property, r >parate and apart from this Lease and such items of property :,hall not he subject to the terms hereof. In addition, as to any Unit covered under this Lease, such Unit can be sold or ri<insferred by Lessee in a bona fide sale without the consent) ;iI (Lessor, and this Lease terminated as to each such Unit upon payment Lo Lessor by Lessee of the Replacement Termination v•,lue for any such Unit. I i ARTICLE V COVENANTS, REPRESENTATIONS AND INDEMNITY PY LESSEE :uc.'tion 501. Authorit✓ and Status. i, Lessee represents, covenants and warrants tthat it is a duly constituted political subdivision of the State of Arkansas' and is authorized by the Constitution and laws of the' State of Arkansas' to enter into the transaction contemplated by this Agreement and to carry out its obligations hereunder. The Little Rock Ambulance Authority is a duly constituted and validly created agency of the Lessee and is authorized by the! laws of the State of Arkansas and the ordinances Hof the Lessee to carry out the activities contemplated of it !in this Lease and any sublease. Lessee has been duly authorized to execute.; and deliver this Agreement and agrees that it will do or cause to be done all things as may be required in the joint reasonable judgments of Lessor and Lessee necessary to preserve aid, keep this Agreement in full force and effect. Lessee) further represents, covenants and warrants that) all required procedures for execution and delivery of this Agreement have I , I 10 i I I v Ali ® M been met, a t that Lessee has complied with jall applicable bidding, negotiation and approval requirements where necessary, . and by due notification has', presented, this Agreement for [,hproval and adoption as a valid, binding and enforceable obligation on its part. I Section 502. Indemnities of Lessee. Lessee agrees to indemnify, protect 'and 'hold harmless._ lessor from and against ._all losses, damages, injuries, liabilities, claims, causes of action and demands whatsoever, reclardless of the cost thereof, and expenses Jin connection therewith, including counsel fees, arising out of the retention by Lessor of title to the Equipment, or out of the Lessee's use avid operation thereof during the period whenititle thereto remains in Lessor, any violation of this Agreement by Lessee, or any violation by Lessee of any legal requirements or any :,clreements affecting the Equipment, or any Unit thereof. ;c:ction 503. Risk of Loss. Lesser agrees that Lessee will bear the l,risk of loss .applicable to the Equipment or any Unit thereof and shall riot ht- rc:lecsed from its obligations hereunder in the event of any damage to or the destruction or loss of one orImore Units or ,,[I, of the Equipment. � :;,,Ctiou 50,1. Disclaimer of Warranties. Lessee acknowledges that the Equipment has been selected iu ',u:cordance with Lessee's specifications and from contractors ,,011 vendors selected by Lessee, that Lessor is not , a m:mufacturer of or a dealer in such Equipment, and that accordingly Lessor MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE DESIGN, OPERATION OR CONDITION OF, OR AS TO THE QUALITY OF THE MATERIAL, JEQUjPmENT OR WORKMANSHIP IN THE EQUIPMENT, AND LESSOR MAKES NO WARRANTY OF MERCHANTABILITY OR FITNESS OF THE EQUIPMENT FOR ANY PARTICULAR PURPOSE OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER; IT BEING AGREED DY LESSEE THAT ALL SUCH RISKS, AS BETWEEN LESSOR AND: LESSEE, ARE TO BE BORNE BY LESSEE, AND THE BENEFITS OF ANY ANO ALL IMPLIED OR STATUTORY WARRANTIES OF LESSOR ARE HEREBY WAIVED BY LESSEE. LESSOR SHALL NOT BE LIABLE FORiINCIDENTAL OR CONSEQUENTIAL DAMAGES. I ' Section 505. Manufacturer's Warranties. Lessor hereby irrevocably appoints and constIitutes Lessee it:, agent and attorney -in -fact during the 'Perm of this Lease, f:u lone as Lessee shall not be in default- hereunder, to assert 11 i I I • . •.,,,'.' �,. .i••LG:6.1]L +t L',iSSA[S.SSt91Y[ @7Ti II 62,. from time totime, in name of, and for the, account of :Lessor,' but for the benefit of Lessee, whatever claims, and,;rights including warranties of Equipment which' Lessor meyjhave against' thi! contractor, .manufacturer or the 'vendor thereof. :Lessee agrees that it shall not assert any claim of any nature whatsoever against Lessor based on , any of I'the' foregoing , matters. Lessee's sole remedy for the breach of any such wairanty, indemnification or representation shall be against,,' the contractor, manufacturer or vendor (as thel -case may be),. and riot against Lessor or any assignee of Lessor,I nor shall any ::itch matter have any effect whatsoever, on the' rights and obligations of Lessee or Lessor with respect to this F.grcement. Lessee expressly acknowledges that Lessor makes,, and has mane, no representation or warranties whatsoever as, to Chi existence or availability of any such !I manufacturer's warranties. I , -!of] 506. 506. Nonarbitr@2_e. I (a) Lessee hereby represents that it expects that any 111uueys dcposiLed in the Acquisition Fund undelr Section ,207 Irureof will be expended for the acquisition and installation of Oju' Equipment initially acquired on or before September 30, (b) Lessee hereby represents that binding obligations to pot id moneys in the Acquisition Fund, specifically $_ in ll:avor of the sellers of the Equipment being initially c:y'uired, have been incurred and that the acquisition and insi..,l )at ion of Equipment to be paid for from Acquisition Fund uu,ni:ys will go forward with due diligence to completion. I ARTICLE VI i i I TERMINATION i `::ct; ion 601. Voluntary Termination. Lessee shall have the right (provided that no Event of Default sha1_1 have occurred and be continuing hereunder), on anyiinterest payment date on or after the fifth anniversary of Uealexecution of the Lease, upon not less than 30 days prior written notice to Lessor, to terminate this Agreement, (the "Voiuntary Termination Date "). Such termination shall be expressly subject to the following conditions, to which Lessee hereby agroes: (a) After giving notice arrange a buyer for the sale of the Equipment to 12 of termination,11 Lessee i may Equipment and arrange for the such buyer; I C.vq..±zz%b�n;Si!'?3i3 t".�:t!!C1'8t >�373:'s70?ea vxr_a•:� ,-.. -• =.tea: .___....�._. F 63 j (b) On the Voluntary Termination Date, Lessee shall arrange for the buyer to remit the proceeds {of such sale of the Equipment, up to the amount ''of the applicable termination valu• owed to Lessor 'as specified in the applicable i Schedule(s) (the "Termination Value "), to Lessor, with Ithe amount of such proceeds in excess of the Termination Value to be remitted to Lessee; (r.) Lessee shall, in addition, be obligatedlto pay on the I voluntary Termination Date from funds or revenues of the EMS (i) the amount by which the sale proceeds as specified in Section 601(b) 'above is !less than the Termination Value and (ii) all the reasonable expenses of Lessor in connection with Isuch transfer and all the expenses of effecting such transfer; (d) Lessor, on the Voluntary Termination Date, shall transfer the Equipment to the buyer thereof, without recourse or warranty by Lessor against receipt in cash by Lessor of the full amount of the applicable Termination Value and of all amounts then due from Lessee under this Agreement (including any Rent due on the Voluntary Termination Date and any other amounts otherwise due hereunder), and jin accordance i therewith Lessor shall transfer to such buyer designated by Lessee all of Lessor's right, title and interest in the Equipment and thereupon Lessee shall deliver, the Equipment to such buyer; (e) IC, for any reason whatsoever, Lessee] cannot, does not or will, not arrange for such isale of the I ?quipment as herein described, or if, for any reason whatsoever, such sale having been so arranged but not consummated, as contemplated above, Lessee agrees that in any event it shall pay to Lessor on the Voluntary Termination Date from the funds and revenues of EMS and amounts appropriated, but unpaid, by Lessee pursuant to Section 204(a)(ii) hereof, the full amount of the applicable Termination Value and all other amounts required to be paid by Lessee hereunder, and in such event Lessee shall be deemed to be the buyer referred to in this Section 601. So-_r_tion 602. Partial Termination. i I i Notwithstanding any other provisions of this Agreement, Leta ce shall have the right at anytime before return of all of the' Equipment to Lessor to purchase and to terminate this Agreement as to any Unit of fire protection equipment included 13 undelethis Agreement by pagent to Lessee of then 4 Termination Value as defined in Section 60 for such Unit plus any delinquent. Rent or. other payments attributable to such Unit. Lessee shall give written notice to Lessor of its intent to purchase sucW Unit not less than 30 days prior to the date on which it proposes to terminate this Agreement as to such Unit. Lessor and Lessee shall comply with the provisions of Section 601(d) above. ;lion G03. _ Effect of Termination. Upon receipt by Lessor of the sales) proceeds, or Tirmination value pursuant to the provisions of this Article VI and of all amounts of Rent payable up to andi including the voluntary-Termination Date and all other amounts due under this ArlreemenL, this Agreement and Lessee's obligations hereunder ::hall terrninaLe, except with respect to those obligations of 1_c see expressly stated to • survive termination of this Agr :e Men l:. i So(i ion 604. Non�!ppropriation of Funds.. In the event no funds or insufficient funds are ,Ipprupriat:ed and budgeted or are otherwise available in any Liscal appropriations period of Lease for Rent payments under Suction 204(a)(ii) of this Lease, then the, Lessee will; ;wIllodiately notify Lessor of such occurrence and this Lease :,h-All lelntinaLe on the last day of the fiscal appropriat:i.ons pt:riud for which funds are available. Such termination shall U(: without penalty or expense to Lessee except that Lessee :;hall pay (a) the Rent payments for which funds have been appropriated or budgeted for the then current fiscal' ;,1,1)ropriations period; and (b) the total of all other Rent Payments due for the balance 'of the current Term and all renewals thereof, but only to the extent of the available funds and revenues of the EMS. In the event of such , Lr:nnination, Lessee agrees to .surrender peaceably possession of the Equipment to Lessor or its assigns on the :date of such termination. Lessor shall have all legal and equitable rights a n,9 •remedies to take possession of the Equipment. Section 605. Warranties. Notwithstanding Sections 601, 602 and 604 above, Lessee agrees; i (a) that it will do all things lawfully within its power to obtain, maintain and properly request and pursue funds from which the Rent can be paid,, including 14 k i 65 making provisions for such payments to the extent necessary in each budget submitted, using. its bonafide best efforts to have such portion of the budget approved and 'exhausting all available administrative reviews and appeals in the event! such, portion of the budget is riot approved; j (b) that it will not cancel this Lease under the provisions of Section 604 if any funds are appropriated to it or by it for the acquisition, retention or operation of the Equipment or other equipment performing functions similar to I the Equipment for the fiscal appropriations period in' which such termination occurs or the next succeeding fiscal appropriations period thereafter; and (c) that it will not during the Term give priority in the' application of funds to any other functionally - similar equipment. .(d) nothin g in subparagraphs (b) or (c) above shall in any way restrict or prohibit Lessee's operation.' through its municipal fire department of rescue units riot designed to transport patients. ARTICLE VII CASUALTY OCCURRENCES suction 701. Payment for Casualty Occurrence. In the event that any Unit shall become 'lost, stolen, destroyed or irreparably damaged from any cause whatsoever or be ,taken in any governmental taking, requisition for use, condemnation or otherwise ( "Casualty Occurrence "); Lessee shall within fourteen days after it shall have determined that such Unit. has r:uffered a Casualty Occurrence, notify Lessor with, respect thereto. Lessor and Lessee shall then proceed under Section 8U2 hereof. As a result of such payments, the amount of Rent reserved in this Agreement shall not change; rather,; the amount of such insurance payments shall be applied in reduction of the last Rent payments called for under ;the Agreement. Srction 702. Transfer of Title. Upon payment by Lessee to "Lessor of the monies set forth above for any Unit affected by a Casualty Occurrence, absolute right, title and interest in and to such Units shall pass to 15 � A �ndWMstMM LWee,MWth%* fF1FheP%aJW1r r ac ion o�heM part of Lessor Lessor agrees however ghat Lessor will execute and deliver t�essee such bills of sa and other documents or instruments as Lessee may reasonably request. ARTICLE VIII I ; INSURANCE I I Suction 1301. Required Insurance. Lessee shall at its this Agreement (including maintain in full . force liability insurance on the applicable insurance policy axpense and for the any extension or and effect, casu¢ Equipment. Lessee or policies shall: initial Term of renewal hereof) ilty and public agrees that the (a) provide for such bodily injury and third party property damage insurance, with liability limits of not less than $ _ for each occurrence, and shall provide all -risk physical loss and damage. insurance in an amount not less than the then -, applicable Termination Value, as set Iforth in the' applicable Schedule(s) hereto, with an insurer or' insurers of recognized financial standing; (b) name as an insured, Lessor, as its I interest .may appear; � � I (c) contain a "breach of warranty" clause whereby the insurer agrees that a breach of the insuring conditions or any negligence by Lessee, or any other person shall not invalidate the insurance as to Lessor andrits assigns; i (d) provide that such policies may not be' cancelled, or materially altered without ten days prior notice to Lessor and its assigns; 1 (e) evidence of any renewal policies to Lessor at least ten days prior of the policies being renewed. a certificate or carriers evidencing Lessee shall provide Lessor with cr:rtificates of the insurance carrier or insurance coverage as herein required. 16 shall be delivered to the expiration i I. . r r a • . I 67 Section 802 Payment of Insurance Proceeds. Upon receipt of any proceeds from insurance as the result ofl loss or damage to any Unit, such proceeds will be used, pursuant to an agreement between the Lessor and Lessee, either (a) to purchase replacement Equipment which will become subject this Lease or (b) to prepay the last Rent payments called for under the Lease. { I ARTICLE IX MAINTENANCE AND REPAIRS Section 901. Maintenance by Lessee. Lessee agrees that, at its own cost and expense, it will maintain and keep the Equipment in good working order and condition and will make all necessary adjustments, repairs and rcplaceiaents, and shall not use or permit the Equipment to'be u:A,d for any purpose for which, in the opinion of the manufacturer thereof, the Equipment is not': designed or reasonably suitable. Lessee agrees that it shall use the equipment in the regular course of its business only, within the normal capacity of the Equipment and without abuse. Lessee shall riot make modifications, alterations or additions to the Equipment (other than normal operating accessories or controls) without the consent of Lessor as provided herein, which consent shall riot be unreasonably withheld. I I Section 902. Inspection by Lessor. Lessor shall have the right, during normal hours, subject to applicable laws and regulations, to enter upon. the premises where the Equipment is located in order to inspect or observe, or 'otherwise protect Lessor's interest, and '.Lessee shall cooperate in affording the Lessor the opportunity to do so. Such right of Lessor, however, shall not be construed as creating any duty of Lessor to inspect such Equipment. Section 903. Replacement of Equipment Due to Wear: Lessee shall, at its own expense, replace' any and all parts and devices which may from time to time become worn out, lust, stolen, destroyed, damaged beyond repair or rendered unfit for use for any reason whatsoever. All such replacement I acts, mechanisms and devices shall be free and clear of liens, encumbrances and rights of others and shall become accessions to the Equipment as provided herein and shall be the property of the Lessor and shall be covered by this Agreement to the same extent as the Equipment. 17 M M ARTICLE X • i IDENTIFICATION OF EQUIPMENT Section 1001. Identification Marks. I 68 i i Lessee will keep and maintain, plainly', distinctly, permanently and conspicuously marked on each Unit the words, "Tit-le in this Equipment is held by I ", or other appropriate words designated by Lessor, with appropriate changes thereof and additions thereto as from time to 'time may be required by law in order to protect the title of Lessor in such Equipment and the rights of Lessor under this Agreement. Section 1002. Other Marks. Except as provided in Section 1001, Lessee will not allow the name of any person, association, corporation, 'partnership or other entity to be placed on.any Unit as a designation that may be interpretative as 'a claim of ownership; provided, however, that Lessee may cause the Equipment to be lettered with the names, initials or other insignia customarily used by Lt.ssee on Equipment of the same or similar type, solelyl for convenience of identification. ARTICLE XI TAXES 5<:ction 1.101. Payment by Lessee. i -- All payments to' be made by Lessee hereunder; will be free of expense: to Lessor for collection and other charges, and will be free of expense to Lessor or any other persons with respect to the amount of any local, state or federal taxes, including, without limitation, income, franchise, gross receipts, sales, iise', personal property, stamp or other taxes, levies, imposts, duties, charges or withholdings of any nature (other than net income taxes or other fees or charges which are, solely based oil, or solely measured by, Lessor's net 'income) assessments, licenses and registration fees, together with any penalties, fines or interests thereon of any fines hereafter levied' or imposed upon, or in connection with, or measured by this Agreement, the payments of Rent or other amounts required to be paid by Lessee hereunder. i 18 lllllllll■ Section 1201 I ARTICLE XII i I USE, OPERATION AND POSSESSION I • Compliance with Applicable Requirements. i 1 MM During the term of this Agreement, Lessee agrees to comply' with and cause the Equipment, each Unit and each portion of both thereof to comply with all laws, regulations,' requirements, rules, all insurance policies required hereunder - and with all requirements of the manufacturer with respect to the use, mainterrance and operation thereof.. 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 Agreement. , Lessee shall provide all permits and licenses, if any, necessary for the installation and operation of the Equipment. In case Jany additional or other Equipment, appliance or alteration' is required to be made or installed on any Unit in order to comply with such laws, regulations, requirements, rules, insurance policies and requirements of the. manufacturer, Lessee agrees to wake or install such Equipment, appliance or alteration at' its own expense. Section 1202. Possession by Lessee. Lessee, so long as it shall not be in default under this Aureement, shall be entitled from and after the commencement' hereof, to the possession of the Equipment and the use thereof, hilt: only upon and subject to all the terms and ;conditions of i Cris Agreement. ARTICLE XIII I PROHIBITIONS AGAINST LIENS Section 1301. Discharge of Liens. Lessee will pay or satisfy and discharge any and all sums claimed by. any party, by, through and under Lessee or its successors or assigns, which, if unpaid, might become a lien or other charge upon the Equipment, but shall not be required to pay or discharge any such claims so long as the validity thereof shall be contested in good faith and by appropriate lr�pal proceedings in any reasonable manner, and the nonpayment thereof does not, in the opinion of Lessor, adversely affect the title, property or rights of Lessor hereunder, Lessee will promptly remove and discharge any charge, lien, security interest or encumbrance upon the Equipment, any Unit or any 19 70 portion of eit er thereof, any other sum payable hereunder Which arises for any reason, including but,, not !limited ::to all liens which arise out of the use, ownership, possession or leasing thereof, but not including any mortgage, charge, lien,' security interest or encumbrance created by or resulting ;from any act of Lessor. Section 1302. Covenant of Lessee. Lessee covenants that it -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 Lqui.pment, except with respect to the respective rights of Lessor and Lessee as herein provided. Lessee shall promptly act in accordance with Section 1301 hereof to observe this covenant in all particulars. However, this covenant shall not be deemed breached by reason of liens for taxes, assessments or governmental charges or levies, in each case not duel and delinquent, or undetermined or inchoate ,materialmen's, mechanic's, workmen's, repairmen's or other like liens arising in the ordinary course of business and, in each case, ;riot delinquent. ARTICLE XIV PERSONAL PROPLRTY S=. ,.Aiun 1,101. Equipment Personal Prope_rLY lt- i :; the intention and agreement of Lessor and Lessee t1i.;t the Equipment and each Unit thereof shall be and at all Limes remain separately identifiable personal property, s v, <rable from the real estate on which it is located without _ damage thereto, notwithstanding that the Equipment or any part thereof, may be, or hereinafter become, in any manner affixed or attached to, or embedded in, or permanently resting upon, teal property or any buildings thereon or any fixtures,, or attached in any manner to what is permanent as by meansl of cement, plaster, nails, bolts, screws or otherwise. Section 1402. Covenant of Lessee. Lessee agrees and covenants that it shall not permit any Unit to be installed in, or used, stored or maintained with, any personal property (except other Units) in such manner or under such circumstances that any person might acquire any rights in such Unit or Equipment paramount to the rights of t.e;sor by reason of such Unit being deemed to be a portion- of !;uch personal property; provided, however, that the use or 20 E 71 maintenance in accordance with normal operating! procedures of Lessee of any Unit with any other similar Equipment owned by or: ]eased to Lessee shall not be a violation of this provision. { Lessee shall not permit any Unit to be installed in or used, stored, or maintained with,, any,real property in1such a manner orlunder such circumstances that any persons might acquire any rights in such Unit or Equipment paramount to the rights of Lessor by reason of such Unit being deemed to be real property, or;a fixture thereon. j ARTICLE XV ASSIGNMENT Section 1501. Assignment by Lessee. (a) Lessee shall sublet certain of the Equipment or a portion of its interest hereunder to the Little Rock AmbulIance' Authority, a duly authorized agency of Lessee. iLessor hereby' consents to such assignment and subletting. All obligations of Lessee hereunder for such subleased Equipment,' except those j obligations to appropriate City revenues will be - assumed and carried out by the Little Rock Ambulance Authority. Such a :,ublease shall not operate as a release of any obligations of Lessee or Lessor hereunder, i (b) Except as set forth in (a) above, Lessee shal.linot , transfer or assign its rights under this Agreement or transfer the right to possession of any Unit, without the 'prior written i c„nsent of Lessor, and any such attempted assignment shall be ' void. I Section 1502. Assignment by Lessor. All or any of the rights, benefits and advantages) of Lessor in and to the Equipment and under this Agreement, including the right to receive payments herein provided to be made by Lessee, may be assigned in whole or in part by Lessor to the Trustee or any' other person, and by each person taking from Lessor by assignment or otherwise, and may be reassigned by any such person at any time and from time to time. No such assignment of any nature whatsoever shall relieve Lessee of its obligations hereunder. Without limiting the .generality of the foregoing, it is agreed that Lessor may assign its rights and interest under this Agreement pursuant to one or more Certificates 'of Participation, as defined in a Trust Agreement of even date herewith. 21 M M Section 1503. Ltepresentation and Covenant of Lessee. 7 2 Lessee recognizes that it is customary in commercial Financing to .assign documents such as this Agreement' anu further understands that the assignment of this Agreement, or some or all of the rights of Lessor hereunder,, is contemplated. Lessee expressly represents, covenants and warrants for the purposes of assurance to any person, firm, corporation, partnership or other entity considering the acquisition of this Agreement or of all or any of the rights of Lessor hereunder, and for the purpose of inducing such acquisitions, that in the event of such assignment by Lessor as provided in Section 1502, the rights of such assignee to the Rent, such other amounts payable by Lessee hereunder or such other part hereof as may be assigned, as well as any other rights thereunder which may be so assigned, shall not] be Subject to any defense, set -off, counterclaim or recoupment whatsoever arising out of any breach of any obligation, if any, of Lessor, or any assignor, with respect to the Equipment or with respect to any indemnity, if any, herein contained, ' nor :subject to any defense, set -off, counterclaim or recoupment wir+tsoever arising by reason of any other indebtedness or Iiahility at any time owing to Lessee by Lessor, or any rii :signor. Any and all such other obligations, howsoever arising, shall be and, remain enforceable by Lessee against,and only against Lessor, or any assignor. ARTICLE XVI DEFAULT Section 1601. Events of Default. The following occurrences shall constitute Events of Default hereunder: (a) Lessee shall fail to pay in full any sum payable by Lessee when payment thereof shall be due hereunder; or (b) Lessee shall fail to perform any of its other covenants in this Agreement and such failure shall continue for 30 days after written notice thereof to Lessee by Lessor; or (c) Lessee makes an assignment for the benefit of creditors, admits in writing its inability to pay its debts as they become due, files a voluntary petition in bankruptcy, is adjudicated 22 1 �-.+we+rwl.:. •.5s,- :.mow : :?a*- sin+- ._-�.! .++�+...a+n,.mam.�r.�. -- -.. e,.,.,�. —. -... M M 73 a bankrupt or an insolvent, files a petition seeking for itself reorganization, arrangement, recomposition, readjustment, liquidation,, dissolution or similar arrangement under anyi present or future statute, law or regulation or files an answer admitting the material allegations of a petition filed against it in such proceeding or consents to or acquiesces in the appointment_ of a trustee, receiver,, or liquidator of it' or of all or any substantial part of its assets or properties, or if it shall take any action looking to its dissolution or liquidation; or (d) Within 60 days after the commencement of any proceedings against Lessee seeking reorganization, arrangement, readjustment, liquidation, dissolution, or similar relief under any present or future statute, law or regulation such proceedings shall not have been dismissed; or if within 60 days after appointment without Lessee's consent or acquiescence of any trustee, receiver or liquidator of it or of all or any substantial part of its assets or properties, such appointment shall not be vacated; or (e) Lessee shall make or suffer any unauthorized assignment or transfer of this Agreement or any interest herein or attempts to sell, transfer, encumber, part with possession or assign (except as expressly permitted by the provisions hereof) the Equipment or any Unit; or (f) Lessee shall have made any representation or warranty in this Agreement, or in any document or certificate executed by Lessee pursuant to this Agreement, which is found to be false in any material respect. (g) There shall occur a Determination of Taxability as set forth in, and subject to the provisions of, Section 1605 hereof. (h) Lessee shall fail to pay to Lessor the Termination Value under Section 601 hereof. (i) The Little Rock Ambulance Authority shall incur debts to First Commercial Bank of Little Rock, N.A., secured by a first lien on its accounts receivable in excess of $ 23 i Section 1602. Lessor's Rights Upon Default. 74 / At any time after the occurrence of an Event of Default; / Lessor may, upon written notice to Lessee and upon compliance' with any legal requirements then in force applicable to (such action by Lessor (the "Declaration of Default "), declare the entire unpaid balance of the Rent to the end of the then; current Term plus the Termination Value for each Unit as of the end of the then - current Term, together with the interestI, thereon then accrued and unpaid, immediately due and payable, :without further demands. Lessor shall thereupon he entitled to recover judgment for such unpaid balance of the Rent,: as determined above. Lessee hereby agrees to give prompt notice in writing to Lessor of any default under this Agreement known' to Lessee. Lessor may waive any such Event of Default and its consequences and rescind Declaration of Default by notice to Lessee in writing to that effect, and thereupon the respective rights of the parties shall be as they would have been if no such default had existed and no Declaration of Default had been made. Notwithstanding the provisions of this paragraph, it is expressly understood and agreed by Lessee that time is of' the essence of this Agreement and that no such waiver or rescission :Fall extend to or affect any other or subsequent default or impair any rights or remedies consequent thereon. Section 1603. Remedies. At any time upon a Declaration of Default, Lessor may, upon such further notice, if any, as may be required for aaupliance with any requirements of law then in force and applicable to the action to be taken by Lessor, take or cause to be taken by its agent or agents immediate possession of the Equipment-, or any Unit or Units thereof, and all or any portion of the moneys and /or securities held in the Acquisition Fund and /or the Replacement Fund, without liability to return to Lessee any sum's theretofore paid and free from all claims whatsoever, except as hereinafter expressly provided, and may remove the same from possession and use of Lessee, Trustee or anyone having such possession and use and for such purpose may enter upon the premises of Lessee or wherever the Equipment may be located, with or without process of law. Lessee hereby expressly waives any and all claims against Lessor and its agent or agents for damages of any nature whatsoever in connection with any retaking of any Unit of the Equipment in any reasonable manner hereunder and in connection with any. retaking of, and all or any portion of the moneys and /or securities held in the Acquisition Fund. Lessor shall also be entitled to collect from all then available funds and revenues of the Authority the entire amount of such judgment or the unpaid balance of same after application of any proceeds from 24 75 sale of the Equipment. Lessor's ability to collect any other. funds from Lessee shall be specifically limited to the amounts• appropriated, but unpaid, by Lessee pursuant to Section - 204(a)(ii) for the appropriation period in which the Event of Default occurred. At any time during the continuance of a Declaration of Default, Lessor with or without the retaking of possession thereof at its election and upon reasonable notice to Lessee and any other persons to whom the law.may require notice,, may sell the Equipment-, or any Unit thereof, free from any and all claims of Lessee, or any other party claiming by, through or under Lessee at law or in equity, at public or private sale and with or without advertisement as Lessor may determine; provided, however, that if prior to such sale or prior to the making of a contract for such sale, Lessee should tender full payment of the entire indebtedness in respect of the Rent as determined pursuant to the Declaration of Default and Section 1602 above, all other payments due under this Agreement as well as expenses of Lessor in retaking, holding and repairing' the Equipment for disposition and arrangement for the sale 'and Lessor's attorneys' fees, then in such event absolute right to I:he possession of and title to the Equipment shall pass to and vest in Lessee. The proceeds of such sale or any lease or other disposition of the Equipment as provided hereunder, less the attorneys' fees and any other expenses incurred by Lessor in taking possession of, and removing, storing and so disposing „= I:he Equipment, shall be credited on the amount due to Lessor under the provisions of this Agreement. Each and every power and remedy hereby and hereunder specifically given to Lessor shall be in addition to every other power and remedy hereby given or now or hereafter c,xist'ing at law or in equity, and each and every power and remedy may be exercised from time to time and simultaneously and as often and in such order as may be deemed expedient by Lessor, except as such exercise may expressly be limited herein. All such power and remedies shall be cumulative; and the exercise of one shall not be deemed a waiver of the right to exercise any other or others, except as such exercise may expressly be limited herein. No delay, except where time limits are expressly herein provided, or omission of Lessor in the exercise of any such power or- remedy and no renewal' or extension of any payments due hereunder shall impair any such power or remedy or shall be construed to be a waiver of any default or art acquiescence therein. 25 i n�. 76 ! Section 1609. Application of Moneys.. All sums of money realized by Lessor from sale or other disposition of the Equipment shall be applied, first, to, the payment of the expenses and liabilities of Lessor hereunder, including all reasonable expenses such as attorneys' fees, incurred by Lessor in enforcing its remedies under the terms of this Agreement, and second to the payment of the unpaid Rent as determined following the Declaration of Default and Section 1602 above. if, after applying as aforesaid all sums of money realized by Lessor, there shall remain any amount due to it under the provisions of this Agreement, then Lessee shall pay the amount of such deficiency to Lessor upon demand, but not to exceed the funds available as provided in Section 1603, and, if Lessee shall fail to .pay the full deficiency, Lessor may bring suit therefor and shall be entitled to recover a judgment against Lessee. If; after applying as aforesaid all sums realized by Lessor,' there shall remain a surplus in possession of Lessor, such surplus shall be paid to Lessee. S,.ction 1605. Determination of Taxability. Should there occur a "Determination of Taxability, " the Lessor shall immediately have all rights provided in Section 1602 as if an Event of Default had occurred. A "Determination of Taxability" shall mean any determination, decision or decree made in regard to Section 103' of the Internal Revenue Code of 1959, as amended, by 'the c,wmissioner or any District Director of Internal Revenue, or, if there is an appeal from any such determination by a conunissioner or District Director, when a final administrative or judicial determination has been made, or by a final decision of any court of competent jurisdiction, that the interest payable hereunder is includable in the gross income of the Lessor or any, assignee of Lessor authorized hereby (other than a taxpayer who is a substantial user or related person within the meaning of the Code) for any reason other than !the enactment by the United States Congress of a change in the tax laws of the United States. Provided, however, no Determination of Taxability shall be deemed to have occurred under this Agreement unless: (i) Lessee shall have been given written notice of the assessment or other proceeding alleging that - interest hereunder is subject to federal income tax in sufficient time to permit the affected taxpaye: to interpose defenses as directed by Lessee; and 26 ILI (ii) Oe affected taxpayer allows Lessee to retain counsel to represent such taxpayer and to direct the defense of such assessment or proceeding, at the expense of Lessee; and (iii) The affected taxpayer exhausts all appeals directed by Lessee, at the expense of Lessee. ARTICLE XVII FINANCING STATEMENTS Section 1701. Further Assurance. Lessee, at the request of Lessor, shall execute and deliver to Lessor such documents or instruments as may be advisable or necessary, in the reasonable judgment of Lessor or any assignee of Lessor, to place on public record Lessor's ownership of the Equipment or to evidence any other security interest applicable hereunder. ARTICLE XVIII APPLICABLE STATE LAWS section 1801. Compliance with State Law and Waiver. Any provision of this Agreement prohibited by any applicable law of the 'State of Arkansas shall be ineffective, without modifying the remaining provisions of this Agreement. Where, however, the-conflicting provisions of any applicable :state law may be waived, they are hereby waived by Lessee to the full extent permitted by law, to the. end that this Agreement shall be deemed to be a lease agreement with option to purchase and enforced as such. Except as otherwise provided in this Agreement, Lessee, to the full extent permitted by law, hereby waives all statutory or other legal requirements for any notice of any kind, notice of intention to take possession of of .to sell the Equipment, or any Unit, and any other requirements as to the time, place and terms of sale thereof, any other requirements with respect to the enforcement of Lessor's right hereunder and any and all rights of redemption. 27 ARTICLE XIX • MISCELLANEOUS Section 1901. Extension Not A Waiver. Any extension of time for payment hereunder or other indulgence duly granted to Lessee in the discretion of Lessor shall not otherwise alter or affect Lessor's rights or the obligations of Lessee hereunder. Lessor's acceptance of , payment after it shall have become due hereunder shall no be deemed to alter or affect Lessee's obligation or Lessor's rights hereunder with respect to any subsequent payment or defaults with respect thereto. Section 1902. Notices. All notices and other communications hereunder shall be in wi iting and shall be deemed to have been given when mailed by first class registered or certified mail, postage prepaid, ;addressed to Lessor and Lessee at their respective addresses set forth below, or at such other address as Lessor or Lessee, as the case may be, shall have furnished in writing to the other. Lessor: Lessee: City of Little Rock City Hall Little Rock, Arkansas 72201 Attention: City Manager Section 1903. Effect and Modification of Agreement. This Agreement and the Schedule(s) hereto exclusively and completely state the rights and agreements of Lessor and Lessee with respect to the Equipment and supersede all other agreements, oral or written with respect to the Equipment. No variations of this 'Agreement and no waiver of any of its provisions or conditions shall be valid unless made in writing and duly executed by and on behalf of Lessor and Lessee. Section 1904. Governing Law. The terms of this Agreement and all rights and obligations hereunder shall be governed by the laws of the State of Arkansas. 28 Woo] Section 1905. Executi.on. .This agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be . an original, and such counterparts together shall constitute but one and the same contract, which shall be sufficiently evidenced by any such original counterpart. IN WITNESS WHEREOF, the parties hereto, each pursuant to due authority, have caused this instrument to be executed in their respective corporate names by duly authorized officers, all as of the date first above written, but actually on the dates opposite their respective signatures below. LESSOR By ATTEST: TITLE _ - - -- THLE DATE: ATTEST: City Clerk (SEAL) DATE: ATTEST: Secretary DATE: 0652S 29 CITY OF LITTLE ROCK, ARKANSAS LESSEE Mayor APPROVED: CITY OF LITTLE ROCK AMBULANCE AUTHORITY By Chairman t• � .r t• t• tr � � � t• � t• � r t• 80 SCHEDULE A -1 One (1) new 100 ft. ladder truck and one (1) new 1000 gallon pumper truck. Note: If fire trucks are included in the municipal lease, then $358,000 appropriated for the purchase of the aforementioned fire equipment should be reallocated for the construction of a central facility to be leased from the City by the Authority with such lease payments to be applied toward lease payments for fire equipment included under the municipal lease arrangement. LOW SCHEDULE A -2 a) One (1) new UHF -EMS communications system (negotiated and ordered through Motorola, Inc.) Including but not limited to, fixed -end equipment consisting of radio base station equipment, microwave, audio matrix and virgo monitors; other equipment consisting of pagers and consoles for dispatch and medical coordination, and additional equipment consisting of 180 ft. tower at Ozark Point, 120 ft. tower at 8th and Ringo and a fail -safe generator. b) Ten (10) new Type I ambulance units including ten (10) chassis and ten (10) patient compartments; c) On -board medical equipment for ten (10) units and back -up inventory; d) Eight (8) used ambulance units purchased in response to crisis to be rolled into the lease to restore the working capital line extended through First Commercial and Worthen Banks.