FMC Corp/Fire Truck Lease 85FMC CORPORATION
Fire Apparatus Operation
Oakdale, California
LEASE PURCHASE AGREEMENT
THIS LEASE, made and entered into this 1ST day of DEC. ,
19 85 , by and between FMC Corporation, Fire Apparatus Operation, a
Delaware Corporation with its plant office in Oakdale, California, and its
principal office in Chicago, Illinois (hereinafter referred to as "FMC"), and
the CITY OF LQ QUINTA
political sub -division organized and existing under and by virtue of the
laws of said state (hereinafter referred to as "LESSEE").
WITNESSETH
WHEREAS LESSEE has available funds which it may lawfully expend for the
purpose hereinafter set forth; and
WHEREAS in executing this agreement, LESSEE warrants that it is acting
by authority of and in accordance with all applicable provisions of law;
NOW, THEREFORE, in consideration of the promises herein made each to
the other, the parties hereto agree as follows:
FMC herebyleases to LESSEE and LESSEE hires from FMC the following
described equipment upon the terms and conditions hereinafter stated, to
wit:
1. Description of Equipment: ONE FMC-VAN PELT - SPARTAN
TRIPLE COMBINATION PUMPER, SN S29XT6FO7FC423859 VAN PELT #831465
2. Delivery: FMC shall deliver said equipment to LESSEE on or about
WEEK OF NOVEMBER 26, 1985
3. Use of Equipment: Said equipment shall be used by LESSEE for the
purpose of fire prevention and as fire -fighting equipment, and for such
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USE OF EQUIPMENT (continued)
other purposes as shall be customary or necessary in the conduct of and
maintenance of a fire department.
4. Terms and Rental: The term of this lease shall be the period of
ONE YEAR from and including the 1ST day of DEC. , 19 85
to and including the 30TH day of NOV. 1986, the rental of
said period to be $37,734.19 paid by LESSEE to
FMC upon delivery of equipment herein leased.
5. Maintenance of Equipment: LESSEE, at its own expense, shall (a)
keep said equipment in good repair through the term of this lease, (b)
furnish all necessary repair parts and install them, and (c) furnish the
labor required to operate, adjust, and attend said equipment.
6. TAXES: LESSEE shall pay all taxes or assessments of every kind
and character which may be levied upon or assessed against said equipment,
and also any Federal, State, County or Municipal sales, use, compensating,
intangibles, gross income, or like tax, however designated, which is levied
or based upon the rental collected by FMC hereunder, or upon the lease
transaction or upon the use of said equipment, but not including taxes
payable upon net income of FMC. LESSEE hereby agrees to exonerate,
indemnify and save FMC harmless from and against any and all cost or
expense which may accrue to or be sustained by FMC on account of LESSEE's
failure to make such payment.
7. Insurance: Said equipment shall be insured by LESSEE, at its own
expense, against loss or damage by fire, theft and other physical damage,
including collision, in an amount not less than the full insurable value
thereof, with loss, if any payable to FMC; provided, however, that $500.00
deductible insurance against collision will be acceptable to FMC.
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LESSEE shall also provide insurance against liability for bodily injury
to the limits $100,000.00 for each person injured and $300,000.00 for each
accident, and shall provide insurance for liability against property damage
to the limit of $25,000.00. LESSEE shall name FMC as an additional insured
under said insurance policy or policies. LESSEE shall furnish FMC with
satisfactory evidence of the insurance coverage above specified.
8. Contingencies: FMC shall not be liable to LESSEE for any loss or
damage suffered by LESSEE, directly or indirectly, as a result of FMC's
failure to perform or delay in performing, any term or condition of this
lease, where such failure or delay is caused by fires, labor troubles
(including strikes and lockouts), riots, insurrections, failure of sources
of supply, Government regulations, inability to obtain materials and
supplies, interruption of or delay in transportation, war, accidents, acts
of God, or other causes of like or different character beyond FMC's
control.
9.Title to Equipment: Title to said equipment, and to all parts and
applicances affixed and appurtenant thereto supplied by FMC, shall remain
in FMC during the term of this lease. LESSEE shall not transfer, assign or
hypothecate this lease, nor sublet or transfer possession of said
equipment, nor create or permit the creation of any lien, charge or
encumbrance of any kind or character against said equipment, without the
prior written consent of FMC.
10. Damage: FMC shall not be liable to LESSEE for loss, damage or
injury to persons (including death) or property occasioned by or growing
out of the maintenance, operation, use or non-use of said equipment, nor
for damages of any kind or nature directly or indirectly sustained, or
alleged to have been sustained, by LESSEE as a result of such maintenance,
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DAMAGE (continued)
operation, use or none -use; and LESSEE shall exonerate, indemnify and save
harmless FMC from and against any and all liability, damage, loss, cost or
expense of whatsoever character which may accrue to or be sustained by FMC
on account of any such loss, damage or injury, or on account of
attachments, liens or claims levied upon or assessed against said equipment
in any suit brought or claim made against LESSEE or anyone claiming through
LESSEE.
11. Termination:
(a) Default of LESSEE. In the event that LESSEE fails to make
rental payments when due hereunder or otherwise defaults in the performance
of any of the terms and conditions of this lease, upon not less than thirty
days advance written notice to LESSEE, the termination hereof shall become
effective ipso facto upon the expiration of such thirty -day period without
LESSEE's default having been cured to FMC's entire satisfaction.
(b) Refusal or Failure to Exercise Options. In the event that
LESSEE fails or declines to exercise an option (as hereinafter provided in
Paragraph 12) either to renew the lease or to purchase said equipment,
this agreement shall terminate as of the expiration date of the lease term
for which rental has been paid, without liability to LESSEE on account of
such termination except to make prompt payment to FMC of any rentals due
and unpaid, and to return said equipment to FMC in accordance with the
provisions of the following subparagraph (c).
(c) Return of —Equipment Upon the expiration or sooner
termination of this lease, LESSEE shall immediately discontinue to use said
equipment and, at its own expense, return the same to FMC at the point of
delivery, in the same condition as it was in at the time of delivery,
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RETURN OF EQUIPMENT (continued)
ordinary wear and tear accepted. If LESSEE fails to so return said
equipment, FMC may repossess the same, at LESSEE's expense, without prior
notice and without liability to LESSEE in damages for so doing.
12. LESSEE's Options: LESSEE shall have the options to renew this
lease for successive periods of one year each, beginning on the 1ST
day of DEC. 1986 1987, 1988 1989 1990 , 1991 ,
and 1992 .
LESSEE may exercise its option to renew this lease for a term of one
year as aforesaid, by giving written notice of its intention to do so to
FMC at any time prior to the expiration of any one-year term, and by paying
to FMC the rental below specified for said further term, (1) in the event
that LESSEE does renew the lease, all the terms and conditions herein set
forth shall govern the renewal, except that the rentals to be paid shall be
as follows:
From DEC. 1,1986 ,to NOV. 30,1987 ..$32,127.97
From DEC. 1,1987 ,to NOV. 30,1988 ..$30,618.60
From DEC. 1,1988 ,to NOV. 30,1989 ..$29,109.23
From DEC. 1,1989 ,to NOV. 30,1990 ..$27,599.86
From DEC. 1,1990 ,to NOV. 30,1991 ...$26,090.50
From DEC. 1,1991 ,to NOV. 30,1992 ...$24,581.13
From DEC. 1,1992 ,to NOV. 30,1993 ••$23,071.76
(1) in accordance with the FMC Computation Schedule, of which receipt of a
copy is hereby acknowledged.
LESSEE shall have the further option to purchase the equipment' herein
leased by giving written notice of its intention to do so to FMC at any time
prior to the expiration of any one-year lease term and by paying the
purchase price of said equipment as of the date of the purchase.
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LESSEE (continued)
This option to purchase may be exercised by LESSEE only as of any of the
dates for renewal of the lease as hereinabove set forth.
The purchase price of the equipment as of the time that LESSEE may
exercise this option to purchase shall be as follows:
If the option to purchase is exercised as of DEC. 1, 1986 the
purchase price shall be $ 161,502.32
If the option to purchase is exercised as of DEC. 1, 1987 the
purchase price shall be $ 138,410.56
If the option to purchase is exercised as of DEC. 1, 1988 the
purchase price shall be $ 115,358.80
If the option to purchase is exercised as of DEC. 1, 1989 the
purchase price shall be $ 92,286.04
If the option to purchase is exercised as of DEC. 1, 1990 the
purchase price shall be $ 69,215.28
If the option to purchase is exercised as of DEC. 1, 1991 the
purchase price shall be $ 46,143.52
If the option to purchase is exercised as of DEC. 1, 1992 the
purchase price shall be $ 23,071.76
The exercise of any or all of the options hereinabove granted shall be
at the sole and absolute discretion of the LESSEE, and no agreement
whatsoever exists between the parties hereto that said LESSEE will or shall
exercise any of said options, and it is further expressly stipulated and
agreed that the LESSEE by reason of the inclusion of said options herein
has not in any way or manner whatever incurred any obligations,
indebtednessorchargeduringthe fiscal years of 1985 1986 , 1987 ,
1988 , 1989 , 1990 , 1991 , 1992 ,and 1993 other than the rental of
said equipment for the original term as above limited provided.
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13• Entire Contract. This lease constitutes the entire contract
between the parties hereto respecting said equipment, and there are no
representatives or warranties, express or implied, not contained herein.
This lease shall not be binding on FMC unless and until accepted by an
officer or other authorized representative; and no alteration or
modification hereof, or waiver of FMC's rights hereunder, shall be binding
on FMC unless and until so accepted.
IN WITNESS WHEREOF, the parties hereto have caused this lease to be duly
executed in duplicate, as of the day and year first above written.
NAME OF LESSEE CITY OF LA QUINTA. CALIFORNIA
BY
TITLE MAYOR
BY
TITLE City Manager
BY
TITLE
FMC CORPORATION
FIRE APPARATUS OPERATION
OAKDALELIFO/RtaIA ,
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