(c) Lessee has not created or established, and does not expect to create or establish, any sinking fund or
other similar fund (i) that is reasonably expected to be used to pay the Rental Payments, or (ii) that may
be used solely to prevent a default in the payment of the Rental Payments.
(d) The Equipment has not been and is not expected to be sold or otherwise disposed of by Lessee, either
in whole or in major part, prior to the last maturity of the Rental Payments.
(e) To the best of our knowledge, information and belief, the above expectations are reasonable.
Section 4. Lease of Equipment. Lessor hereby demises, leases and lets the Equipment to Lessee, and
Lessee rents, leases and hires the Equipment from Lessor, in accordance with the provisions of this
Agreement, for the Lease Term.
Section 5. Lease Term. The Original Term of this Agreement will commence on the Commencement
Date and will terminate on the last day of Lessee’s current fiscal year. The Lease Term may be continued,
solely at the option of Lessee, at the end of the Original Term or any Renewal Term for an additional
RenewalTerm up to the Maximum Lease Term. At the endofthe Original Term and at the end of each
Renewal Term untilthe Maximum Lease Term has been completed, Lessee will be deemed to have
exercised its option to continue this Agreement for the next Renewal Term unless Lessee has terminated
this Agreement pursuant to Section 6 or Section 31. The terms and conditions during any Renewal Term
will be the same as the terms and conditions during the Original Term, except that the Rental Payments
will be as providedin the Payment Schedule.
Section 6. Termination of Lease Term. The Lease Term willterminate upon the earliest of any of the
following events:
(a) the expiration of the Original Term or any Renewal Term of this Agreement and the nonrenewal of this
Agreement in the event of nonappropriation of funds pursuant to Section 8;
(b) the exercise by Lessee of the option to purchase the Equipment under the provisions of Section 31
and payment of the Purchase Price and all amounts payable in connection therewith;
(c) a default by Lessee and Lessor’s election to terminate this Agreement under Section 36; or
(d) the payment by Lessee of all Rental Payments authorized or re quired to be paid by Lessee hereunder
during the Maximum Lease Term.
Section 7. Continuation of Lease Term. Lessee currently intends, subject to the provisions of
Section 8 and Section 12, to continue the Lease Term through the Original Term and all of the Renewal
Terms andto pay the Rental Payments hereunder. Lessee reasonably believes that legally available funds
in an amount sufficient to make all Rental Payments during the OriginalTerm and each of the Renewal
Terms can be obtained. The responsible financial officer of Le ssee will do all things lawfully within his or
her power to obtain and maintain funds from which the Rental Payments may be made, including making
provision for such Rental Payments to the extent necessary in each proposed annual budget submitted for
approval in accordance with applicable procedures of Lessee and to exhaust all available reviews and
appeals in the event such portion of the budget is not approved. Notwithstanding the foregoing, the
de cision whether or not to budget or appropriate funds or to extend this Agreement for any Renewal Term
is solely within the discretion of the then current governing body of Lessee.
Section 8. Nonappropriation. Lessee is obligated only to pay such Rental Payments under this
Agreement as may lawfully be made from funds budgeted and appropriated for that purpose during
Lessee’s then current fiscal year. In the event sufficient funds will not be appropriated or are not
otherwise legally available to pay the Rental Payments required to be paidin the next occurring Renewal
Term, asset forthin the Payment Schedule, this Agreement will be deemed to be terminated at the end of
the then current Original Term or Renewal Term. Lessee agrees to deliver notice to Lessor of such
termination at least 90 days prior to the end ofthe then current Original Term or Renewal Term, but
failure to give such notice will not extend the Lease Term be yond such Original Term or Renewal Term. If
this Agreementis terminated in accordance with this Section, Lessee agrees, at Lessee’s cost and expense,
to peaceably deliver the Equipment to Lessor at the location or locations specified by Lessor.
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