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HomeMy WebLinkAbout85-0311 Hewlett Packard Lease t5—O311 RESOLUTION AUTHORIZING EXECUTION OF A LEASE/PURCHASE AGREEMENT WITH THE HEWLETT-PACKARD COMPANY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Robert O. Ma1m, Acting City Manager, be and is hereby authorized and directed to execute a lease/purchase agreement on behalf of the City of Elgin with the Hewlett-Packard Company for a Police Information Management System, a copy of which is attached hereto and made a part hereof by reference. Richard L. Verbic, Mayor Presented: March I I, 1985 Adopted: Vote: Yeas Nays Recorded: Attest: Marie Yearman, City Clerk LEASE WITH OPTION TO PURCHASE HEWLETT EQUIPMENT SCHEDULE ir_t. PACKARD AGREEMENT NO.: - ( ) REF: MASTER AGREEMENT NO.:412 6- 56201 ( ) LESSOR: HEWLETT-PACKARD COMPANY,Its Successors era Assigns 3000 Hanover Street.20BE Palo Alto.CA 94304 STATE OF ILLINOIS LESSEE: ILLINOIS CRIMINAL JUSTICE AUTHORITY-ELGIN POLICE DEPARTMENT (Ful Lepel Nome al lee...) 150 Dexter Court (BangAddress) Elgin Kane Illinois 60120 (ter) (county) (sem) MP) Tom Flora (Contsct) (Phone) EQUIPMENT LOCATION,IF OTHER THAN ADDRESS OF LESSEE: Street See inside Q,, County see The Exhibits checked below are attached and made a part of this Agreement: HP Product Warranty E Standard HP Software Terms E Other HP Document No. 5953-3010(50)D HP Document No. HP Document No. Revision No. R02-84 Revision No. Revision No. HP Tax-Exempt Rider k HP Early Buyout Schedule E Other HP Document No. 9320-4892 HP DOCUMent No. Enclosed HP Document No. Revision No. Rev. 1 Revision No. Revision No. PH 9320-4894 Rev I NON-CANCELLABLE AGREEMENT: THIS AGREEMENT CANNOT BE CANCELLED OR TERMINATED EXCEPT AS EXPRESSLY PROVIDED HEREIN. The following items are leased on terms specified on this schedule and this schedule a part of and subject to the terms and conditions of Master Agreement Number 4126 -5620 1 dated January L S 19 which remains in full force and effect. The term of this E uipment schedule for each item of Equipment covered hereon shall commence upon the date Lessor executes this Schedule and shall expire months from the due date of the first invoice,or on the expiration of anyl applicable renewal period.As w-rApr ttLe quipment covered by this schedule throughout the term thereof, Lessee agrees to pay Lessor,its successors or assigns the sum of$ J which(excludes/004W applicable(sales/use)tax(es),per month beginning upon acceptance of Equipment as defined in paragraph 3 of the above referenced Master Agreement. PURCHASE,RENEWAL,RETURN OPTIONS Provided that no event of default has occurred or is continuing to occur at the end of the initial non-cancellable lease term,Lessee shall have the option to exercise the following options by providing Lessor with ninety(90)days prior written notice bf its intention: (i) To purchase all or some of the Equipment covered by this Agreement for:(CHECK ONE) Ten Percent Price of Equipment to be Purchased Amount C (10%)of the: ( Total Net Price Equipment ) X to ) ;Net Finance D The then Fair Market Value(FMV)of each item of Equipment to be purchased: One dollar($1.00)for all items of Equipment; (Available only for Tax-Exempt or with Special Approval) plus any accrued late charges and taxes applicable to the transfer of this Equipment; (ii) To renew all or some of the Equipment covered by this Agreement on a month-to-month basis for the: /Net Price of Equipment to be Renewed\ 1\ Total Net Price Equipment /I X (Original Monthly Payment) (iii) To return in accordance with paragraph 4 of the above referenced Master Agreement any Equipment covered by this Agreement that is not pur- chased or renewed. If Lessee fails to notify Lessor of its intentions ninety(90)days prior to this Agreement's expiration,it is hereby agreed that the Lessee shall renew all of the Equipment covered by this Agreement in accordance with option(ii)above. During the renewal period Lessee may return all of the Equipment in accordance with paragraph 4 of the above referenced Master Agreement or pur- chase all of the Equipment covered by this Agreement for the price computed in accordance with option(i)above or the then Fair Market Value(FMV) whichever is less, by providing the Lessor with ninety(90)days prior written notice. If Lessee exercises its option to purchase the Equipment, it is sold in its then"as is"condition at its location when the option is exercised. EARLY BUY-OUT OPTION At its option during the initial non-cancellable lease term,Lessee may purchase all of the Equipment in its then"as is"condition at its location when the option is exercised.The purchase price shall be determined from the above referenced Early Buy-Out Schedule. EQUIPMENT UPGRADE/ADD-ON At its option but subject to Lessor's prior written consent,Lessee may lease additional equipment and/or upgraded equipment for those items covered under the Agreement on a then currently marketed Lessor upgrade program. Such additional or upgraded equipment shall be scheduled on a new Equipment Schedule. I EARLY BUYOUT/UPGRADE SCHEDULE CUSTOMER: STATE OF ILLINOIS-ILLINOIS CRIMINAL JUSTICE AUTHORITY ELGIN POLICE DEPARTMENT LEASE # 4126- TYPE OF LEASE: TAX EXEMPT MONTHLY LEASE RATE: 2.028 EFFECTIVE DATE OF RATES USED: 2/1 /85 *CUSTOMER RESPONSIBLE FOR PROPERTY TAX ( IF APPLICABLE) *INVESTMENT TAX CREDIT TO CUSTOMER ( IF APPLICABLE) Buyout is 84. 1% after payment 12 * Buyout is 82. 6% after payment 13 Buyout is 81 . 1% after payment 14 * Buyout is 79. 6% after payment 15 Buyout is 78. 1% after payment 16 * Buyout is 76.6% after payment 17 Buyout is 75.0% after payment 18 * Buyout is 73. 5% after payment 19 Buyout is 71 . 9% after payment 20 * Buyout is 70. 3% after payment 21 Buyout is 68. 7% after payment 22 * Buyout is 67. 1% after payment 23 Buyout is 65. 5% after payment 24 * Buyout is 63. 9% after payment 25 Buyout is 62. 3% after payment 26 * Buyout is 60. 6% after payment 27 Buyout is 59.0% after payment 28 * Buyout is 57. 3% after payment 29 Buyout is 55. 6% after payment 30 * Buyout is 53. 9% after payment 31 Buyout is 52. 2% after payment 32 * Buyout is 50.5% after payment 33 Buyout is 48. 8% after payment 34 * Buyout is 47.0% after payment 35 Buyout is 45. 3% after payment 36 * Buyout is 43.5% after payment 37 Buyout is 41 . 8% after payment 38 * Buyout is 40.0% after payment 39 Buyout is 38.2% after payment 40 * Buyout is 36. 4% after payment 41 Buyout is 34. 6% after payment 42 * Buyout is 32. 8% after payment 43 Buyout is 30.9% after payment 44 * Buyout is 29. 1% after payment 45 Buyout is 27. 2% after payment 46 * Buyout is 25. 3% after payment 47 Buyout is 23. 5% after payment 48 * Buyout is 21 . 6% after payment 49 Buyout is 19.7% after payment 50 * Buyout is 17. 7% after payment 51 Buyout is 15. 8% after payment 52 * Buyout is 13.9% after payment 53 Buyout is 11 . 9% after payment 54 * Buyout is 10. 0% after payment 55 Buyout is 8.0% after payment 56 * Buyout is 6.0% after payment 57 Buyout is 4. 0% after payment 58 * Buyout is 2.0% after payment 59 Buyout is .0% after payment 60 THE ABOVE BUYOUT PERCENTAGES ARE PREDICATED UPON THE FOLLOWING ASSUMPTIONS: *THAT NO EVENT OF DEFAULT HAS OCCURRED AND I$ CONTINUING AT THE TIME THE BUYOUT IS QUOTED *THAT ALL RENTS DUE ARE CURRENT *THE ABOVE PERCENTS APPLY TO THE AMOUNT FINANCED ONLY AND DO NOT INCLUDE APPLICABLE TAXES ( IF ANY) HEWLETT-PACKARD COMPANY STATE OF ILLINOIS-IL CRIMINAL _ ,JUSTICE AUTHORITY-ELGIN POLICE DEPT BY: �(BY: TITLE: \JtITLE: COMPUTER PRODUCTS WARRANTY& INSTALLATION 11[ ]; HEWLETT PATERMS CKAFiD 1. ALL COMPUTER PRODUCTS For product warranties requiring return to HP, products moist be returned to a service Hewlett-Packard (HP) products are warranted facility designated by HP. Buyer shall prepay against defects in materials and workmanship shipping charges (and shall pay all duties and for a period of ninety (90) days. If HP taxes) for products returned to HP for receives notice of such defects during the warranty service. Except for products warranty period, HP shall, at its option, returned to Buyer from another country, HP either repair or replace hardware products shall pay for return of products to Buyer. which prove to be defective. Installation and warranty services outside the HP software and firmware products which are country of initial purchase are included in designated by HF for use with a hardware HP's productprice only if Buyer pays HP product, when properly installed on that internationaprices. Service outside the hardware product, are warranted not to fail country of initial purchase is subject to the to execute _their programming instructions due conditions regarding HP service travel areas to defects in materials and workmanship for a and initial installation point described period of ninety (90) days. If HP receives above. notice of such defects during the warranty period, HP shall repair or replace software 3. •LIMITATION OF WARRANTY media and firmware which do not execute their Trogramming instructions due to such defects. the foregoing warranty shall not apply to HP does not warrant that the operation of the defects resulting from: software, firmware or hardware shall be uninterrupted or error free. 1. Improper or inadequate maintenance by Buyer; Products that include HP installation are warranted from the installation date, all 2. Buyer-supplied software or interfacing; others from the delivery date. If Buyer schedules or delays installation more than 30 3. Unauthorized modification or misuse; days after delivery, then warranty periods starts on the 31st day from date of delivery. 4. Operation outside of HP environmental specifications for the product; or If HP is unable, within a reasonable time, to repair or replace any product to a condition 5. Improper site-preparation and maintenance. as warranted, Buyer shall be entitled to a refund of the purchase price upon return of THE WARRANTY SET FORTH ABOVE IS EXCLUSIVE AND the product to HP. NO OTHER VAR ANTY, WHETHER WRITTEN OR ORAL, IS EXPRESSED R IMPLIED. HP SPECIFICALLY 2. PLACE OF PERFORMANCE DISCLAIMS HE IMPLIED WARRANTIES OF MERCHANTABILXTY AND FITNESS FOR A PARTICULAR -Within HP service travel areas, warranty and PURPOSE. installation services for products installed by HP and certain other products designated by 4. LIMITATIONS OF REMEDIES AND LIABILITY HP will be performed at Buyer's facility at no charge. For other products warranty and THE REMEDIES PROVIDED HEREIN ARE BUYER'S SOLE installation services will require return to AND EXCLUSIV$ REMEDIES. IN NO EVENT SHALL HF HP. Outside HP service travel areas, warranty BE LIABLE FOR DIRECT, INDIRECT, SPECIAL, and installation services will be performed at INCIDENTAL OA CONSEQUENTIAL DAMAGES (INCLUDING Buyer's facility only upon HP's prior LOSS OF PROF',ITS) WHETHER BASED ON CONTRACT, agreement and Buyer shall pay HP's round trip TORT OR ANY OTHER LEGAL THEORY. travel expenses and applicable additional expenses for such services. The foregoing limitation of liability shall • not apply in the event that any HP product On-site warranty services are provided only at sold hereunder Is determined my a court of the initial installation point. If products competent jurisdiction to be defective and to eligible for on-site warranty and installation have directly caused bodily injury, death or services are moved from initial installation property damage; provided, that in no event point, the warranty will remain in effect only shall HP's liability for property damage if Buyer purchases additional inspection or exceed the greater of $50,000 or the purchase Installation services at the new site. price of the 'specific product that caused such damage. Revision No. R02-84 5953-3010(50)D WARRANTY a INSTALLATION CLASSIFICATION CODES HP Computer Products will receive warranty and installation services as defined by the two digit classification warranty codes listed below. Warranty classification codes for each product are specified on HF's Product Subject to Discount. Exhibit A-1 (form number 5953*3017). Warranty and installation service levels are upgraded for Terminals, Peripherals, Accessories and Interfaces to the system level service. when (1) These Products are purchased with systems on a coordinated delivery and included in the system configuration, or (2) When products are purchased as an add-on tq an existing HP System covered by a Support Service Agreement which is expanded to include the add-on products. WHEN 12 MONTHS SUPPORT SERVICES ARE PURCHASED CONCURRENT WITH THE PRODUCT, THESE SERVICES WILL BE PROVIDED AT NO ADDITIONAL CHARGE DURING THE WARRANTY PERIOD. FOR HARDWARE PRODUCTS, ANY INCREASED SUPPORT SERVICES COVERAGE PURCHASED WILL ALSO APPLY DURING THE WARRANTY PERIOD. 2A WARRANTY d INSTALLATION SERVICES 90-DAY ON-SITE Warranty Service. Services provided are same as that provided in HP's "Standard System Maintenance Service". Provides for 8:00 a.m. to 9:00 p.m. on-site coverage Monday through Friday exclusive of HF Holidays, within HP defined Service Travel Areas. See "Response Timetable" below for service response times. This service includes HP's standard site planning site survey support and installation. 29 WARRANTY i INSTALLATION SERVICES 90-DAY ON-SITE Warranty Service. Services provided are same as that provided in HP's "Standard System Maintenance Service". Provides for 8:00 a.m. to 9:00 p.m. on-site coverage Monday through Friday exclusive of HP Holidays within HP defined Service Travel Areas. See 'Response Timetable" below for service response times. This service includes HP's standard installation. 2C WARRANTY SERVItES 90-DAY ON-SITE Warranty Service. Services provided are same as that provided in HP's "Standard System Maintenance Service". Provides for 8:00 a.m. to 9:00 p.m. on-site coverage Monday through Friday exclusive of HP Holidays within HP defined Service Travel Areas. See "Response Timetable" below for service response times. This service does not include installation. 2D WARRANTY SERVICES 90-DAY ON-SITE Warranty Service. Services provided are same as that provided in HP's "On-Site Maintenance Service". Provides for 8:00 a.m. to 5:00 p.m. on-site coverage Monday through Friday exclusive of HF Holidays within HP defined Service Travel Areas. See "Response Timetable" below for service response times. This service does not include installation. 3A WARRANTY SERVICES 90-DAY Parts and Labor: Travel not included. Buyer contact HP office from which product was purchased for return address. Shipping freight to HP is at Buyer's expense. HP may repair on-site at the option of Buyer, Buyer is responsible for travel charges when on-site repair is requested. Response time for on-site repair is three (3) working days within HP defined Service Travel Area. 3B WARRANTY SERVICES 90-DAY Return to BP Warranty Service. 90-DAY Parts and Labor, ON-SITE Warranty Service is not available. Buyer contact HP office from which product was purchased for return address. Shipping freight to HP is at Buyer's expense. 3C WARRANTY SERVICES 90-DAY Return to HP Warranty Service. Warranty service is limited to replacement of defective software media or materials only. 4A WARRANTY SERVICES 12 Month Return to HP Warranty. Return freight is at buyer's expense. Product must be returned to an authorized Hewlett-Packard Service Repair Center. RESPONSE TIME TABLE tone No. 1-3 4-5 6 Other Distance, Miles 0-100 101-200 201-300 - distance, Km 0-160 161-320 321-480 - "Standard System Maintenance Service" 4 hrs 8 hrs 12 hrs Quote "On-Site Product Maintenance Service" Next Within 2 Within 3 Quote Coverage Day Coverage Day Coverage Days SPECIAL NOTES: HP systems operating in sites that become defective due to conditions listed under "Limitations of Warranty" will not receive normal warranty. Any repairs performed by HP which are caused by the listed conditions will be charged to the Buyer. Due to variations in local electrical codes, many HP computer products are shipped without power cables and connectors. These products must be connected to power by Buyer's electrical contractor in compliance with local regulations. Repairs made on products covered by HP warranty will be accomplished at, no additional charge, exclusive of shipping damage. For products not covered by MP warranty, repairs will be made at Buyer's expense. INSTALLATION SERVICES 1. SITE PLANNING (WRNTY. A INSTL. CODE 2A ONLY) 1. System and Selected Component Installation When the Buyer's purchase order is received by HP will begin the installation of the HP, a representative of HP will contact the Buyer's HP Computer Systems or Selected Buyer to discuss site preparation Component at a mutually agreed upon time requirements. This will be accomplished following notification by Buyer that the either during an on-site visit or by phone and shipment haS been received and delivered to will encompass technical site planning, the site, and that the site conforms to HP preparation and installation activities specifications. relative to the Buyer's HP computer system. Buyer will also receive sate planning HP Computer Systems, including all documentation which characterizes the accessories, interfaces, peripherals and physical, electrical and environmental terminals ordered with a System on a requirements pertinent to the use of Buyer's coordinated delivery and included on HP's HP computer products. Site Planning will Configuration Guide and located at the cover such subjects as the computer room System Site, will be Installed by MP at no layout, electrical power, air conditioning and additional charge. all other points outlined in the HP "Site Preparation Manual" for the Buyer's system. During System installation, HP .will perform Further consultation may be obtained from HP, . the following tasks: if necessary. a. Supervise uncrating and positioning and 2. SITE ENVIRONMENT SURVEY (WRNTY. i INSTL. CODE Tacking of the HP products. 2A ONLY) All installation sites must be a b. Inventory the shipment against the Prior to the scheduled delivery pofoBuyer's HP packing, list. system, a representative of HP will verify c. Interconnect the products. that the site has been prepared in conformance with the "Site Preparation Manual" and meets d. Check the primary power line voltage. ell electrical and environmental requirements. A survey may take place either on-site or may e. Connect' line power to products shipped be verified by telephone. with power cable and connector. 3. INSTALLATION SERVICES f. Execute turn-on procedures. Standard installation services consisting of g. Perform electronic and mechanical site planning, site environmental survey, and adjustments. installation are available for all warranty code 2A HP Computer Systems and associated h. Perform any repairs which may be computer products. The cost for these services required to make the products are included in the purchase price of these operational. computer products. These services can also be obtained from HP, on an additional charge i. Execute standard HP diagnostic or basis, for products which do not include these verification program and tests. services in the purchase price of the product. Installation services are only included for j. Instruct operator on the daily care and warranty code 28 products. proper use of hardware products. 2. Software Installation including customer and HP responsibilities, refer to the individual product Standard software installation services descriptions. consist of loading the Fundamental Operating Software (FOS) on the computer 4. BUYER'S INSTALLATION RESPONSIBILITIES system and executing applicable verification tests. Fundamental Operating The Buyer is responsible for performing the Software includes the operating system and following tasks: utilities included with the operating system software or the purchased software 'a. Receive, uncrate, rack or move the product. products HP3000 Software includes installation when 'b. Rerack or relocate the products purchased with the system on a coordinated delivery or when purchased as add-on 'c. Train programmers software to a system which is supported by a "Customer Support Services' Agreement" 'd. Reconfigure or regenerate HP software (CSS) for all it's installed software systems Installation services call be ordered at additional charge for all other HP licensed 'e. Debug application programs software products which do not include installation service. 'f. Connect line power to products shipped without power cable and connector Software product purchase of second and subsequent orders (indicated by purchase of 'g. Install products not supplied by HP the "License to Reproduce", "R" or "f7" suffix on a product number) do not include h. Fabricate or pull cables installation. The Buyer is responsible for installation ' These tasks may be performed by the local HP and operation of any software or equipment Support Persionnel, HF resources permitting, for not supplied by HP. For additional an additional charge. information on installation services, • AMENDMENT TO TAX EXEMPT ORGANIZATION RIDER The parties agree to amend the Tax Exempt Organizational Rider to Lease 4126- as follows (each amendment is numbered to correspond to the respective rider provision) : 1 . Availability of Funds , Non-Appropriation of Funds: Paragraph 3 is deleted and the following substituted: Lessee agrees that it will not cancel this agreement under the provisions of this paragraph if funds are appropriated for this agreement. In the event of a general reduction in appropriations lessee agrees not to give priority to funding any equipment performing essentially the same application which was acquired after the equipment covered by this agreeMent. Lessee agrees that it will not institute a non-appropriation of funds and will not use these provisions for the purpose of replacing Lessor's equipment with functionally similar equipment provided by others. 2. Income Tax Indemnity. This section is deleted. All other terms and conditions remain the same. STATE Of ILLINOIS ILLINOI CRIMINAL JUSTICE HEWLETT PACKARD COMPANY INFORMATION AUTHORITY BY )(BY K.r llopke TITLE Sales Contracts Manager (TITLE DATE ybATE ILLINOIS DEPARTMENT OF CENTRAL MANAGEMENT SERVICES BY TITLE DATE TAX EXEMPT ORGANIZATIONS CAIHEWLETT � LEASE AGREEMENT RIDER P� PACKARD AGREEMENT NUMBER: 4156201 REF: MASTER AGREEMENT NUMBER: 41 The provisions of the aforementioned Agreement notwithstanding; Lessor and Lessee mutually agree that: 1. AVAILABIUTY OF FUNDS, NONAPPROPRIATION OF under Section 103(a)(1)of the Internal Revenue Code of 1954 FUNDS as amended.Should the United States Government disallow, Lessee reasonably believes that funds can be obtained suffi eliminate,reduce,recapture,or disqualify,in whole or in part, tient to pay all Rent due during the Agreement Term and any benefits of such exemption as a result of any acts or omis- hereby covenants that it will do all things lawfully within its slops by lessee or as a result of the inapplicability of such sec- power to obtain, maintain and properly request and pursue tion at thetime this Agreement is entered into because of the funds from which the Rent may be made, including making status of Lessee, Lessee shall then indemnify Lessor by pay- provisions for such payments to the extent necessary in each ment,at Lessor's election,of either: budget submitted for the purpose of obtaining funding, using its bona fide best efforts to have such portion of the budget ap- (a) Supplemental Rent to Lessor during the remaining proved and exhausting all available administrative reviews and period of the Agreement Term in an amount necessary to appeals in the event such portion of the budget is not ap- permit Lessor to receive(on an after tax basis over the full proved.It is Lessee's intent to pay Rent for the full Agreement term of the Agreement)the same rate of return that Lessor Term if funds are legally available therefor and in that regard would have realized had there not been a loss or Lessee represents that the use of the Equipment is essential to disallowance of such benefits, together with the amount of its proper,efficient and economic operation. any interest or penalty which may be assessed by the govemrnental authority with respect to such loss or In the event no funds or insufficient funds are appropriated and disallowance;or budgeted or are otherwise legally available by any means whatsoever in any fiscal period for Rent due under this Agree- (b) A lump sum payable upon demand to Lessor which shall ment,then the Lessee will immediately notify the Lessor or its be equal to the amount necessary to permit Lessor to re- assigns of such occurrence and this Agreement shall ter- ceive (On an after tax basis over the full term of the Agree- minate on the last day of the fiscal period for which appropria- ment)the same rate of return that Lessor would have rea- tions were received without penalty or expense to Lessee of lized had there not been a loss or disallowance of such any kind whatsoever,except as to the portions of Rent herein benefit$together with the amount of any interest or penalty agreed upon for which funds shall have been appropriated and which May be assessed by the governmental authority with budgeted or otherwise available. In the event of such termina- respect to such loss or disallowance. tion,Lessee agrees to peaceably surrender possession of the Equipment to Lessor or its assigns on the date of such ter- mination, packed for shipment in accordance with manufac- turer specifications and freight prepaid and insured to any 3. AUTHORITY AND AUTHORIZATION location in the continental United States designated by Lessor. Lessee represents,covenants and warrants that:(i)Lessee is Lessor will have all legal and equitable rights and remedies to a fully constituted political subdivision or agency of the state or take possession of the Equipment. local governmental unit where the Equipment is located;(ii)the execution, delivery and performance by the Lessee of this Notwithstanding the foregoing,Lessee agrees(i)that it will not Agreement have been duly authorized by all necessary action cancel this Agreement under the provisions of this paragraph if on the pall of the Lessee;and(iii)this Agreement constitutes a any funds are appropriated to it, or by it, for the acquisition, legal,valid and binding obligation of the Lessee enforceable in retention or operation of the Equipment or other Equipment accordanbe with its terms. Lessee agrees that(i)it will do or performing functions similar to the Equipment for the fiscal cause to be done all things necessary to preserve and keep the period in which such termination occurs or the next suc- Agreement in full force and effect,(ii)it has compiled with all deeding fiscal period thereafter and(ii)that it will not during the bidding requirements where necessary and by due notification Agreement Term give priority in the application of funds to any presented this Agreement for approval and adoption as a valid other functionally similar Equipment. This paragraph will not obligation',on its part,and(iii)it has sufficient appropriations or be construed so as to permit Lessee to terminate this Agree- other funds available to pay all amounts due hereunder for the ment in order to acquire any other Equipment or to allocate current fiscal period. funds directly or indirectly to perform essentially the same ap- plication for which the Equipment is intended. 4. INTEREST RECOGNITION 2. INCOME TAX INDEMNITY Lessee and Lessor recognize and agree that a portion of the This Agreement has been entered into on the basis that the rent hereynder is interest based on the total equipment cost as Lessor or any Assignee of the Lessor shall claim that the In- shown on the equipment schedule and calculated at the rate terest paid hereunder is exempt from Federal income tax of eight percent( 8 %)per annum. P/N 9320-4892 Re/.I • EQUIPMENT: hem Item Extended List hem Net Net Oty. Model Description Price <Discount> Price Price SHIP TO: ELGIN POLICE DEPARTMENT 150 DEXTER COURT ELGIN, IL 60120 ATTN: TOM FLORA 1 2334A HP MULTIMUX $1 , 950 . 00 12% $1 , 716.00 $1 , 716.00 4 OPT 122 4 PORT DIRECT I/F $750.00 12% $660.00 $2, 640.00 1 5061-0083 RACK/HANDLE KIT $80. 00 0% $80. 00 $80. 00 1 2933A 200 CPS PRINTER $2,795. 00 12% $2, 459. 60 $2, 459. 60 1 92214P SUPPORT STAND $275.00 0% $275.00 $275.00 1 2563A DOT MATRIX PRINTER $5,780. 00 12% $5,086. 40 $5,086. 40 1 OPT 049 RS-232 I/F SUBSYSTEM $100. 00 12% $88.00 $88.00 1 OPT 110 SOUND ABATEMENT ATTACH $165. 00 12% $145.20 $145.20 1 OPT 112 PRINTER STAND $295 . 00 12% $259. 60 $259. 60 1 OPT 115 PAPER STACKER $365.00 12% $321 .20 $321 .20 8 2628A MULTIFUNCTION TERMINAL $3, 195.00 12% $2, 811 . 60 $22, 492.80 8 OPT 062 REPLACES W/AMBER CRT $100. 00 12% $88. 00 $704. 00 8 OPT 401 TILT & SWIVEL PEDESTAL $50. 00 12% $44. 00 $352.00 3 2933A 200 CPS PRINTER $2,795. 00 12% $2, 459. 60 $7,378. 80 3 92214P SUPPORT STAND $245.00 0% $245.00 $735. 00 • EQUIPMENT: Item Rem Extended Ust Item Net Net Qty. Model Description Price <Discount> Price Price SHIP TO: IL CRIMINAL JUSTICE AUTHORITY 120 S. RIVERSIDE PLAZA 10TH FLOOR CHICAGO, IL 60606 ATTN: ED MAIER 1 2334A HP MULTIMUX $1 ,950.00 12% $1 , 716.00 $1 , 716.00 4 OPT 122 4 PORT DIRECT I/F $750.00 12% $660.00 $2,640.00 Net Priceare $49 ,089. 60 Net Price-Software Total Net Price-Equipment $49 ,089. 60 Other Costs Less Down Payment Amount to Finance $49,089. 60 By execution hereof,the signer hereby certifies that he has read this Agreement anOhe attached Exhibits and that he is duly authorized to execute this Agrement on behalf of Lessee. tate of Illinois LESSOR HEWLETT-PACKARD COMPANY LESSEE: IL Criminal Justice Authority-Elgin Police Dept. BY: )(BY: Authorized Signature Authorized Signature NAME: R.F. Dopke )(NAME: T : Sales Contracts Manager DATE: ATE: