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Lease Number: 227805
<br />EQUIPMENT LEASE/PURCHASE AGREEMENT
<br />THIS EQUIPMENT LEASE/PURCHASE AGREEMENT ("Agreement") is made as of March 01, 2020 by and between ALTEC
<br />CAPITAL SERVICES, L.L.C. ("Lessor") and CITY OF REDLANDS, CALIFORNIA ("Lessee").
<br />In consideration of the mutual covenants, terms and conditions hereinafter contained, Lessor hereby agrees to lease to Lessee, and
<br />Lessee hereby agrees to lease from Lessor, the property (hereinafter, together with all replacements and accessions thereto, referred to as
<br />the "Equipment") generally described in the Preliminary Description of Equipment attached hereto and to be more specifically described in
<br />the Certificate of Acceptance, in the form attached, to be executed and delivered pursuant hereto, subject to the terms and conditions set
<br />forth herein.
<br />This Agreement is made upon the following terns and conditions:
<br />(l) TERM. (a) Commencement of Term. This Agreement shall be effective, and the parties' obligations hereunder shall arise, as of the
<br />date hereof. The term of lease under this Agreement shall commence on the date on which the Equipment is accepted by Lessee, as
<br />indicated on the Certificate of Acceptance (the "Commencement Date"), and shall terminate on the last business day of Lessee's then
<br />current fiscal budget period (such period being hereinafter referred to as the "Original Term"). (b) Renewal of Term. Subject to the
<br />provisions of Section 10 hereof and sub -part (e) of this Section, the Original Term will be automatically and successively renewed at the
<br />end of the Original Term under the same terms and conditions for successive renewal periods ("Renewal Terms"), with the last of such
<br />Renewal Terms to end on the last day of the Full Lease Term, as specified on the Schedule of Payments executed by Lessee and attached
<br />hereto (the "Schedule"). (c) Termination of Term. The term of lease will terminate upon the earliest to occur of any of the following
<br />events: (1) The expiration of the Original Term or any Renewal Term and the nonrenewal thereof in accordance with the teens and
<br />conditions of this Agreement; (2) The purchase of the Equipment by Lessee under the provisions of Sections 8(c) or 10 of this Agreement;
<br />(3) A default by Lessee and Lessor's election to terminate this Agreement under Section 13; or (4) The payment by Lessee of all rental
<br />payments to be paid by Lessee hereunder with respect to the Equipment. (d) Continuation of Lease Term by Lessee. Lessee intends,
<br />subject to the provisions of sub -part (e) of this Section, to continue the term of the lease hereunder through the Original Term and all
<br />Renewal Terms for the Full Lease Term and to pay the rental payments hereunder. Lessee reasonably believes that legally available funds
<br />in an amount sufficient to make all rental payments for the Full Lease Term can be obtained and further intends to do all things lawfully
<br />within its power to obtain and maintain funds from which the rental payments may be made. (e) Nonappropriation. In the event sufficient
<br />funds are not appropriated for the payment of all rental payments required to be paid in the next succeeding Renewal Term, then Lessee
<br />may terminate this Agreement at the end of the Original Tenn or the then current Renewal Tenn, as the case may be, and Lessee shall not
<br />be obligated to make payment of the rental payments provided for in this Agreement beyond the then current tern. Lessee agrees to give
<br />notice to Lessor of such termination at least sixty (60) days prior to the end of the then current term or, if nonappropriation has not occurred
<br />by that date, promptly upon the occurrence of nonappropriation. If this Agreement is terminated under this sub -part, Lessee agrees, at
<br />Lessee's sole cost and expense, peaceably to deliver the Equipment to Lessor at such location as is specified by Lessor, in the condition
<br />required by Section 5(b) hereof, on or before the effective date of termination.
<br />(2) RENTAL PAYMENTS. (a) Rental Payments to Constitute a Current Expense of Lessee. Lessor and Lessee understand and
<br />intend that the obligation of Lessee to pay rental payments hereunder shall constitute a current expense of Lessee and shall not in any way
<br />be construed to be a debt of Lessee in contravention of any applicable constitutional or statutory limitations or requirements concerning the
<br />creation of indebtedness by Lessee, nor shall anything contained herein constitute a pledge of the general tax revenues, funds or monies of
<br />Lessee. (b) Payment of Rental Payments. Lessee shall pay rental payments exclusively from legally available funds, in lawful money of
<br />the United States of America, to Lessor in the amounts and on the rental payment due dates set forth in the Schedule without notice. In the
<br />event that any rental payment is not received by Lessor on or before the due date therefor, Lessee agrees to pay a late charge determined on
<br />the basis of accrued interest on the delinquent amount at the rate of one percent (l%) per month (or, if such rate is in excess of the
<br />maximum rate permitted by law, the maximum rate permitted by law) from the date of delinquency to the date that the rental payment is
<br />received by Lessor. (c) Interest and Principal Components. As set forth in the Schedule, a portion of each rental payment is paid as, and
<br />represents payment of, interest, and the balance of each rental payment is paid as, and represents payment of, principal. (d) Rental
<br />Payments to be Unconditional. The obligation of Lessee to make rental payments hereunder, and to perform and observe the covenants
<br />and agreements contained in this Agreement, shall be absolute and unconditional in all events, except as expressly provided in this
<br />Agreement. Lessee shall not assert any right of setoff, counterclaim, or abatement against its obligations hereunder, including (without
<br />limitation) by reason of equipment failure, disputes with the vendor(s) or manufacturer(s) of the Equipment or Lessor, accident or any
<br />unforeseen circumstances.
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