R2013-07 AUTHORIZING CITY MANAGER TO ENTER INTO A LEASE PURCHASE NINE 2012 CHEVROLET IMPALA POLICE PURSUIT VEHICLES

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interest from Federal gross income then, subject to Section 4.04 in connection with due appropriation, to the extent lawful, Lessee shall pay to Lessor, within thirty (30) days an amount equal to the sum of(i) penalties, fines, interest and additions to tax (including taxes imposed on the interest payments paid under this Agreement through the date of such event)that are imposed on Lessor as a result of the loss of the exclusion and that Lessor cannot deduct in computing its Federal income tax liability divided by one minus the highest Federal regular marginal tax rate in effect for the tax period for which Lessor lost the exclusion plus (ii)penalties, fines, interest and additions to tax that are imposed on Lessor as a result of the loss of exclusion that Lessor can deduct in computing its Federal income tax liability; and additionally, Lessee shall pay as additional interest to Lessor on each succeeding Rental Payment due date under this Agreement such amounts as will maintain Lessor's after-tax yield evidenced by this Agreement. ARTICLE VII: DAMAGE DESTRUCTION AND CONDEMNATION• PROCEEDS. Section 7.01 Damage, Destruction and Condemnation. If prior to the termination of the Lease Term (a) the Property is destroyed (in whole or in part) or is damaged by fire or other casualty or (b) the Property or any part thereof shall be taken under the exercise of the power of eminent domain by any governmental body or by any party acting under governmental authority, Lessee and Lessor will cause the proceeds of any insurance claim or condemnation award, after deducting all expenses (including attorneys' fees) incurred in the collection of such claim or award ("Net Proceeds"),to be applied to Lessee's obligations pursuant to Section 7.02 hereof. Section 7.02 Application of Net Proceeds. Provided the Property is not deemed to be a total loss, Lessee shall, if Lessee is not in default hereunder, cause the repair, replacement or restoration of the Property and pay the cost thereof. In the event of total destruction or damage to the Property, whether or not Lessee is in default, at Lessor's option, Lessee shall promptly pay to Lessor the amount of the Purchase Price as set forth in the Payment Schedule attached hereto applicable to such date (the"Purchase Price"), plus the Rent Payment due on such date, plus any other amounts payable by Lessee hereunder, and, upon payment in full of such amounts, the Lease Term shall terminate and Lessor's security interest in the Property shall terminate. Net Proceeds in excess of the then applicable Purchase Price, if any, shall be retained by Lessee. Lessee agrees that if the Net Proceeds are insufficient to pay in full Lessee's obligations hereunder,Lessee shall make such payments to the extent of any deficiency. ARTICLE VIII: DISCLAIMER OF WARRANTIES AND EXCLUSION OF REMEDIES: VENDOR'S WARRANTIES; USE. Section 8.01 Disclaimer of Warranties; Exclusion of Remedies. LESSEE ACKNOWLEDGES THAT LESSOR IS NOT THE MANUFACTURER OR THE DISTRIBUTOR OF THE PROPERTY. LESSEE AGREES THAT LESSOR HAS MADE AND MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY NATURE, DIRECTLY OR INDIRECTLY, EXPRESS OR IMPLIED, AS TO THE SUITABILITY, DURABILITY, FITNESS FOR USE, MERCHANTABILITY, CONDITION, OR QUALITY OF THE PROPERTY OR OF ANY UNIT THEREOF. LESSEE SPECIFICALLY WAIVES ALL RIGHTS TO MAKE ANY CLAIM AGAINST LESSOR AND ANY ASSIGNEE OF LESSOR 6