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HomeMy WebLinkAboutA8299 - XEROX FINANCIAL SERVICES LLC - XEROX COPIER LEASE AGREEMENT-006 11-10-2021 City of Palm Springs Office of the City Clerk 3200 E. Tahquitz Canyon Way • Palm Springs, California 92262 Tel: 760.323.8206 • Fax: 760.322.8332 • TDD 760.864.9527 • www.paimspringsca.gov Date: June 24, 2020 To: David Ready, City Manager From: Anthony Mejia, City Cler& SUBJECT: Agreement Supplement with Xerox to Reduce Contract Amount On July 24, 2019, the City Council approved a five-year agreement with Xerox for the City's new fleet of copiers in the amount of $107,224.07, which includes a credit of $15,000 annually for translation services. On August 19, 2019, the City Manager approved Change Order No. 1 to add one additional copier for the police department and additional accessories, for an additional annual amount of $3,725.12. Unfortunately, the translation service offered by Xerox no longer works and I have requested to terminate the service and a refund of this year's balance. As a result, the contract with Xerox has been reduced to an annual payment of $90,836.56, plus the Change Order amount of $3,725.12, for a new total annual amount of $94,588.68. This Agreement Supplement results in a total reduction of $16,360.51 per year. The City Clerk's Office made arrangements with two other Translation Services Companies to fill the gap left by terminating this service. Xerox Financial Services LLC xe rox QP 0 201 Merritt Agreement Supplement Norwalk, CT 06851 ("Supplement") Agreement Number ("Agreement") Agreement Number for this Supplement Dealer Name 020-0036746-004 Image Source CUSTOMER•• Full Legal Name: CITY OF PALM SPRINGS Phone: 760-323-8206 Billing Address: 3200 E. TAHQUITZ CANYON Contact Name: ANTHONY MEJIA City: PALM SPRINGS State: CA Zip Code: 92262 Contact Email: EQUIPMENTADDED EQUIPMENT DELETED Quantity Model and Description Quantity Model and Description Revised payment based on the $60,000 payment To reduce current annual payment NEW PAYMENT OR ADDITIONAL ❑ If this box is checked, your new payment is the sum of the amounts set If this box is checked, your New Payment consists of the forth in the Agreement, any other Supplements thereto, as applicable, sum of: (i) an annual payment of $90,836.56, (ii) any and an additional payment for this Supplement. The Additional applicable Excess Charges, and (iii) all applicable Taxes, Payment for this Supplement consists of the sum of: (i) a monthly (collectively, the "New Payment"). payment of $ , (ii) any applicable Excess Charges, and (iii) all applicable Taxes, (collectively, the "Additional Payment"). ❑ If this box is checked, the above includes a change to your service as detailed below. ❑ If this box is checked, the above includes a change to your service as CHANGES detailed below. TO SERVICE CHECK ONE: ❑ Changes below are additional service charges to the Agreement ❑ Changes below are new totals corresponding to the Agreement TYPE Impressions Included Excess Charge Prints Included Excess Charge B&W Color COMBINED® 48 months, which is the balance of the Initial Term ❑ months, solely for the equipment listed in the "Equipment of the Agreement, so this Supplement is coterminous with the Added" section above, with no change to the remaining term of the Agreement and any other Supplements thereto, as applicable. Agreement for all other Equipment. TERMS • CONDITIONS You have asked Xerox Financial Services LLC to agree to this Supplement, which adds Equipment to, deletes Equipment from, and/or modifies service charges for Equipment subject to the Agreement. You agree to pay the New Payment or the Additional Payment, whichever is applicable, set forth above. EXCEPT AS SPECIFICALLY MODIFIED IN THIS SUPPLEMENT, THE TERMS AND CONDITIONS IN THE AGREEMENT, INCLUDING ANY PREVIOUS SUPPLEMENTS THERETO AND ANY PERSONAL GUARANTY(S), SHALL REMAIN IN FULL FORCE AND EFFECT THROUGH ALL APPLICABLE TERM(S) ABOVE, AND ARE INCORPORATED HEREIN BY REFERENCE. CUSTOMER BY SIGNING BELOW, YOU ACKNOWLEDGE THAT WE ARE MODIFYING THE NON -CANCELLABLE AGREEMENT SET FORTH ABOVE, AND THAT YOU HAVE READ AND AGREE TO ALL TERMS AND CONDITIONS IN (1) THE AGREEMENT, AS MODIFIED, (ii) ANY PREVIOUS SUPPLEMENTS, IF APPLICABLE, AND (iii) THIS SUPPLEMENT. Authorized Sig r X: Date:�a Federal Tax ID # (Required): Print Name: �a7V+C1u Title: CAIn OWNER Accepted By: Xerox Financial Services LLC Name and Title: Date: rITV 4 rmONry ST: 'w ppmM sv c" awlsim XFS-SUPPLEM T-03.15. CONTRACT ABSTRACT CONTRACT Company: Xerox and ImageSource Contact Name: Amanda Maze Address: Phone: 760-345-6889 Email: amaze@imagesourceusa.com Summary of Services: CHANGE ORDER NO. 1: One additional Xerox copier for the Police Department Evidence Room and four high capacity paper feeders for City Clerk, Planning Department, Police Records Division, and Finance. Contract Price: NTE $18,626 over 5 yrs Funding Source: 001-1261 (Doc. Mgmt) Contract Term: Aug. 19, 2019 - June 30, 2024 CONTRACT ADMINISTRATION Lead Dept: Clerk Contract Administrator: Anthony Mejia CONTRACT/AMENDMENT/CHANGE ORDER APPROVALS Council Approval Date: 07/24/2019 Council Approval? Yes City Manager Approval? N/A Agenda Item No./Resolution No.: Consent 1 F Agreement No.*g2-ql CONTRACT COMPLIANCE Exhibits: Proposal Attach Signatures: Insurance: Yes Bonds: N/A CONTRACT PREPARED BY City Clerk's Office Name: Anthony Mejia Phone Ext. 8206 Date Submitted: 08/19/2019 Xerox Financial Services LLC v r ��ss 45 Glover Avenue ox Cost Per Copy Agreement Xe 1 J� Norwalk,CT 0685E Lease Agreement#:003674E 1 Dealer Name:Image Source LESSEE INFORMATION Full legal Name DBA City of Palm S rin s Billing Address City State ZIP Code 3200 E.Tah uitz Can on Palm Springs CA 92262 Phone Contact Name Contact Email Lessee PO#(Optional) 760 323-8206 AnthonM Me'ia Anthon .me'ia@ alms rin sca. ov EQUIPMENT Quantity Model and Description I Quantity I Model and Description 1 Xerox AlaLink B8055 1 4 Xerox Altal-ink High Capacity Feeders Equipment Location(if different from Billing Address) TERM AND PAYMENT 1 1 EXCESS CHARGE PRINTS INCLUDED EXCESS CHARGE B&w 0 .0049 Initial Lease Term(in months): 60 Color N/A N/A Annual Lease Payment:$3,725.12 Everyday Color N/A N/A Includes applicable taxes.Payment may be Color Level 2 N/A N/A adjusted according to current tax rates. Color Level 3 N/A N/A LESSEE ACCEPTANCE BY YOUR SIGNATURE BELOW,YOU ACKNOWLEDGE THAT YOU ARE ENTERING INTO A NON-CANCELLABLE LEASE AND THAT YOU HAVE READ AND AGREED To ALL AND CONDITJONS SET FORTH ON PAGES 1 AND 2 OF THIS LEASE. _uthorized Signer 'Date: VFederal Tax IE q-(Required) e 95-6000757 rint Name Title( dicate Presi nt,Partner,Proprietor,etc.) David H Reaciv Citv Manager LESSOR ACCEPTANCE Accepted By:Xerox Financial Services LLC Nameand Title Date TERMS&CONDITIONS 1.Definitions.The words you'and your mean the legal entity identified in'Lessee Information'above,and 5.End of Lease Options.If you are not in default and if you provide no greater than 150 days and no less than 'XFS;'we;'us''Lessor and'our'means Xerox Financial Services U.C.'Party'means you or XFS,and 60 days'prior written notice to XFS,you may,at the end of the Initial Lease Term,either(a)purchase all,but 'Parfies"means bothyou and XFS.'Dealer'meansthe entity identified in'DealerName"above.'DiscountRate" not less than all,ofthe Equipment'AS 15,WHERE IS'and WITHOUT ANY WARRANTY AS TO CONDITION means a rate equal to the 1-year Treasury Constant Maturity rate as published in the Selected Interest Rates OR VALUE at the time of purchase by paying its fair market value,as determined by XFS in its sole but table of the Federal Reserve statistical release H.15(519)or successor publication for the week ending reasonable discretion,plus Taxes,(b)enter into a new lease on mutually agreeable terms,or(c)de-install and immediately prior to the Inception Date.'Equipment means the items identified in'Equipment'above and in return the Equipment,at your expense,fully insured,to a continental US location XFS specifies.If you have not any attached Equipment schedule,plus any Software(as defined in Section 3 hereol),attachments,accessories, elected one of the above options,you shall be deemed to have entered into a new lease with a 3 month term replacements,replacement parts,substitutions,additions and repairs thereto.'Excess Charges'means the on terms and conditions identical to this Lease,except that either party may terminate the new lease at the end applicable excess copies and/or prints charges.'Inception Date'means(a)the date Dealer determines of its 3 month term on 30 days'prior written notice and,when this new lease terminates,shall take one of the Equipment installed by Dealer is operating satisfactorily and is available foryour use,or(b)the date Equipment actions identified in(a)(b)or(c)in the preceding sentence or be deemed to have entered into another new identified by Dealer as being installable by you is delivered to your premises.'Lease'means this Cost Per Copy lease with a 3 month term as provided herein.Any purchase option shall be exercised with respectto each item Agreement,including any attached Equipment schedule.'Lease Payment'means the Annual Lease Payment of Equipment on the day immediately following the date of expiration of the Lease Tenn of such item,and by specified above,which includes the fixed component of maintenance charges payable to Dealer under the the delivery atsuch time by you to XFS of payment,in cash or by certified check,ofthe amountofthe applicable Maintenance Agreement,the Excess Charges(unless otherwise agreed by you,Dealer and XFS),and other purchase price for the Equipment.Upon payment of the applicable amount,XFS shall,upon your request, charges you,Dealer and XFS agree will be invoiced in advance by XFS on an Annual basis,plus Taxes. execute and deliver to you a big of sale for the Equipment on an'AS IS,' WHERE IS;'WITH ALL FAULTS' 'Maintenance Agreement'means a separate agreement between you and Dealer for maintenance and support basis,without representation orwarranty of any kind or nature whatsoever.Aftersuch payment,you maytrade- purposes.'Origination Fee"means a one-time fee of$125 billed on your first invoice which you agree to pay, in the Equipment as part of another transaction with XFS and,if you do,you must pass unencumbered title of covering the origination,documentation,processing and certain other initial costs for the Lease.'Term'means the Equipment being traded-in to XFS. the Initial Lease Term plus any subsequent renewal or extension terms.'000'means the Uniform Commercial 6.Equipment Return.If the Equipment is retumed to XFS,it shall be in the same condition as when delivered Code of the State of Connecticut(C.G.S.A.§§42a-1-101 et seq.). to you,normal wearand tearaccepted and,if not in such condition,you will be liable forall expenses XFS incurs 2.Lease,Payments and Late Payments.You agree and represent all Equipment was selected,configured to return the Equipment to such`normal wear and tear condition.IT IS SOLELY YOUR RESPONSIBILITY TO and negotiated by you based upon your own judgment and has been,or is being,supplied by Dealer.At your SECURE ANY SENSITIVE DATA AND PERMANENTLY DELETE SUCH DATA FROM THE INTERNAL request,XFS has acquired,orwill acquire,the same to lease to you under this Lease and you agree to lease MEDIA STORAGE PRIOR TO RETURNING THE EQUIPMENTTO XFS.YOU SHALL HOLD XFS HARMLESS the same from XFS.The Initial Lease Tenn,which is indicated above,commences on the Inception Date.You FROM YOUR FAILURE TO SECURE AND PERMANENTLY DELETE ALL SUCH LESSEE DATA AS agree to pay XFS the first Lease Payment 30 days after the Inception Date;each subsequent Lease Payment, OUTLINED IN THIS SECTION. which may include charges you,Dealer and XFS agree will be invoiced by us,shall be payable on the same 7,Meter Readings and Annual Adjustments.Unless otherwise agreed byyou and XFS,you will provide meter date annually thereafter,whether or not XFS invoices you.If any payment is not paid in full within 5 days readings on an Equipment subject to this Lease at the end of each month during the Initial Lease Tenn and any after its due date,you will pay a late charge of the greater of 10%of the amount due or$25,not to exceed additional Term.If you do not provide a timely meter reading,XFS may estimate such reading and invoice you the maximum amount permitted by law.For each dishonored or returned payment,you will be assessed the accordingly.If XFS does estimate any meter readings,XFS will make appropriate adjustments on subsequent applicable returned item fee,which shall not exceed$35.Restrictive covenants on any method of payment will invoices to you after receiving the actual meter readings from you forthe Equipment At any time after 12 months be ineffective. from the Inception Date and for each successive 12 month period thereafter during the Initial Lease Tenn and 3.Equipment and Software.To the extent that the Equipment includes intangible property or associated any 3 month extended Tenn,XFS may increase your Annual Lease Payment and the Excess Charges by a servloessuch assoftware licenses,such intangible propertyshall be referred to as'Software.'You acknowledge maximum of fifteen percent(15%)of the then-current Annual Lease Payment therefor and you agree to pay and agree that that XFS has no right,title or interest in the Software and you will comply throughout the Lease such increased amounts. Tern with any license and/orother agreement('Software License')with the supplier ofthe Software(°Software 6.Equipment Delivery and Maintenance.Equipmentwillbe delivered to you byDealerat the location specifiied Supplier).You are responsible for entering into any required Software License with the Software Supplier no on the first page hereof or in an Equipment schedule,and you agree to execute a Delivery&Acceptance later than the Lease Inception Date.You agree the Equipment is for your lawful business use in the United Certificate at XFS's request(and confirm same via telephone and/or electronically)confirming that you have States(including its possessions and territories),will not be used for personal,household or family purposes, received,inspected and accepted the Equipment,and that XFS is authorized to fund the Dealer for the and is not being acquired for resale.You will not attach the Equipment as a fixture to real estate or make any Equipment If you reject the Equipment,you assume all responsibility for any purchase order or other contract permanent alterations to it issued on your behalf directly with Dealer.Equipment may not be moved to another location without first 4.Non-Cancellable Lease.THIS LEASE CANNOT BE CANCELLED OR TERMINATED BY YOU PRIOR TO obtaining XFS's written consent,which shall not be unreasonably withheld.You shag permit XFS to inspect THE END OF THE INITIAL LEASE TERM.YOUR OBLIGATION TO MAKE ALL LEASE PAYMENTS,AND Equipment and any maintenance records relating thereto during your normal business hours upon reasonable TO PAY ALL OTHER AMOUNTS DUE OR TO BECOME DUE,IS ABSOLUTE AND UNCONDITIONAL AND notice.You represent you have entered into a Maintenance Agreement with Dealer to maintain the Equipment NOT SUBJECT TO DELAY,REDUCTION,SET-OFF,DEFENSE,COUNTERCLAIM OR RECOUPMENT FOR in good working order in accordance with the manufacturer's maintenance guidelines,and to provide you with ANY REASON WHATSOEVER,IRRESPECTIVE OF THE PERFORMANCE OF THE EQUIPMENT,DEALER, suppries for use with the Equipment You understand and acknowledge that XFS is acting solely as an ANY THIRD PARTY OR XFS.Any pursued claim by you against XFS for alleged breach of our obligations administrator for Dealer with respect to the billing and collecting of the charges under the Maintenance hereundershall be asserted solely in a separate action;provided,however,that your obligations under this Agreement and Excess Charges included in the Lease Payments.IN NO EVENT WILL XFS BE LIABLE TO Lease shall continue unabated. YOU FOR ANY BREACH BY THE DEALER OF ANY OF ITS OBLIGATIONS TO YOU,NOR WILL ANY OF YOUR OBLIGATIONS UNDER THIS LEASE BE AFFECTED,MODIFIED,RELEASED OR EXCUSED BY ANY ALLEGED BREACH BY DEALER. Page 1 of 2 CPC-Final Rev.8.27.2014 9.Equipment Ownership,Labeling and UCC Filing.If and to the extent a court deems this Lease to be a INTERESTS(COLLECTIVELY"EQUIPMENT INSURANCE").EQUIPMENT INSURANCE WILL COVER THE security agreement underthe UCC,and otherwise for precautionary purposes only,you grant XFS a first priority EQUIPMENT AND XFS;IT WILL NOT NAME YOU AS AN INSURED AND MAY NOT COVER ALL OF YOUR security interest in your interest in the Equipment and all proceeds thereof in order to secure your performance INTEREST IN THE EQUIPMENT AND WILL BE SUBJECT TO CANCELLATION AT ANY TIME.YOU AGREE underthis Lease.XFS is and shall remain the sole ownerof the Equipment except the Software.XFS may label TO PAY XFS PERIODIC CHARGES FOR EQUIPMENT INSURANCE (COLLECTIVELY"INSURANCE the Equipment to identify ourownership interest in it You authorize XFS to file by any permissible means a UCC CHARGES")THAT INCLUDE: AN INSURANCE PREMIUM THAT MAY BE HIGHER THAN IF YOU financing statement to show,and to do all other acts to protect,our interest in the Equipment You agree to pay MAINTAINED THE REQUIRED INSURANCE SEPARATELY;A FINANCE CHARGE OF UP TO 1.5%PER any filing fees and administrative costs for the filing of such financing statements.You agree to keep the MONTH ON ANY ADVANCES MADE BY XFS OR OUR AGENTS;AND COMMISSIONS,BILLING AND Equipment free from any liens or encumbrances and to promptly notify XFS if there is any change in your PROCESSING FEES;ANY OR ALL OF WHICH MAY GENERATE A PROFIT TO XFS OR OUR AGENTS. organization such that a refiling or amendment to XFS's UCC financing statement against you becomes XFS MAY ADD INSURANCE CHARGES TO EACH LEASE PAYMENT.XFS shall discontinue billing or necessary. debiting Insurance Charges for Equipment Insurance upon receipt and review of satisfactory evidence of 10.Assignment YOU MAY NOT ASSIGN,SELL,PLEDGE,TRANSFER,SUBLEASE OR PART WITH Required Insurance. POSSESSION OF THE EQUIPMENT,THIS LEASE OR ANY OF YOUR RIGHTS OR OBLIGATIONS UNDER You must promptly notify XFS of any loss or damage to Equipment which makes any item of Equipment THIS LEASE(COLLECTIVELY'ASSIGNMENT')WITHOUT XFS'S PRIOR WRITTEN CONSENT,WHICH unfit for continued or repairable use.You hereby irrevocably appoint XFS as your aftomey-in-fad to execute SHALL NOT BE UNREASONABLY WITHHELD, BUT SUBJECT TO THE SOLE EXERCISE OF XFS'S and endorse all checksordrafts in yournarne to collect underanysuch Required Insurance.Insurance proceeds REASONABLE CREDIT DISCRETION AND EXECUTION OF ANY NECESSARY ASSIGNMENT from Required Insurance or Equipment Insurance received shall be applied,atXFS's option,to(x)restore the DOCUMENTATION.If XFS agrees to an Assignment,you agree to pay the applicable assignment fee and Equipment so that it is in the same condition as when delivered to you(normal wear and tear excepted),or(y) reimburse XFS far any costs we incur in connection with that Assignment XFS may sell,assign or transfer all if the Equipment is not restorable,to replace it with like-kind condition Equipment from the same manufacturer, or any part of the Equipment,this Lease and/or any of our rights(but none of our obligations)under this Lease. or(z)pay to XFS the greater of(i)the total unpaid Lease Payments for the entire term hereof(discounted to XFS's assignee will have the same rights that we have to the extent assigned(but none of our obligations)and present value atthe Discount Rate)plus XFS's residual interest in such Equipment(herein agreed to be 20%of YOU AGREE NOTTO ASSERTAGAINST SUCH ASSIGNEE ANY CLAIMS,DEFENSES,COUNTERCLAIMS, the Equipment's original costto XFS,discounted topresenlvalueattheDiscountRate)plus anyotheramounts RECOUPMENTS,OR SET-OFFS THAT YOU MAY HAVE AGAINST XFS.XFS agrees and acknowledges that due to us underthis Lease,or(ii)the fair market value of the Equipment immediately pdorto the loss ordamage, anyAssignmenl by us will not materially change yourobligations under this Lease. as determined by XFS.NO LOSS OR DAMAGE TO EQUIPMENT,OR XFS'S RECEIPT OF INSURANCE 11.Taxes.You will be responsible for,indemnify and hold XFS harmless from,all applicable taxes,fees or PROCEEDS,SHALL RELIEVE YOU OF ANY OF YOUR REMAINING OBLIGATIONS UNDER THIS LEASE. charges(including sales,use,personal property and transfer taxes,other than net income taxes),plus interest Notwithstanding procurement of Equipment Insurance or Required Insurance,you remain primarily liable for and penalties,assessed by any governmental entity on the Equipment,this Lease orthe amounts payable under performance undersubclauses(x),(y)or(z)in the third sentence of this paragraph in the event the applicable this Lease(collectively,'Taxes'),which will be included in XFS's invoice to you unless you timely provide insurance carrier fails or refuses to pay any claim.YOU AGREE(I)TO ARBITRATE ANY DISPUTE WITH XFS, continuing proof of your tax exempt status.If Equipment is delivered to a jurisdiction where certain taxes are OUR AGENTS OR ASSIGNS REGARDING THE EQUIPMENT INSURANCE ANDIOR INSURANCE calculated and paid at the time of lease initiation,you authorize XFS to finance and adjust your Lease Payment CHARGES UNDER THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION IN FAIRFIELD to include such Taxes over the Initial Lease Term unless you require otherwise.Unless and until XFS notifies COUNTY,CT,(II)THAT ARBITRATION(NOT A COURT)SHALL BE THE EXCLUSIVE REMEDY FOR SUCH you in writing to the contrary,XFS will file all personal property tax returns covering the Equipment,pay the DISPUTES AND(III)THAT CLASS ARBITRATION IS NOT PERMITTED.This arbitration requirementdoes personal property taxes levied or assessed thereon,and collect from your account all personal property taxes not apply to any other provision of thhisis Lease. on the Equipment.This is a true lease for all income tax purposes and you will not claim any credit ordeduction 16.Finance Lease and Lessee Waivers.The parties agree this Lease is a"finance lease"under UCC for depreciation of the Equipment,or take any other action inconsistent with your status as lessee of the Article 2A.You waive,solely against XFS and its successors and assigns,(a)all rights and remedies Equipment. conferred on a lessee under Article 2A(Sections 508.522)of the UCC(C.G.S.A.§§42a-2A-724-737),and 12.Equipment Warranty Information and Disclaimers.XFS IS MERELY A FINANCIAL INTERMEDIARY, (b)any rights you now or later may have which require XFS to sell,lease orotherwise use any Equipment AND HAS NO INVOLVEMENT IN THE SALE,DESIGN,MANUFACTURE,CONFIGURATION,DELIVERY, to reduce our damages including our realization of the remaining value of the Equipment,or which may INSTALLATION, USE OR MAINTENANCE OF THE EQUIPMENT.THEREFORE,WITH RESPECT TO otherwise limit or modify any of our rights or remedies. EQUIPMENT,XFS DISCLAIMS,AND YOU WAIVE SOLELY AGAINST XFS,ALL WARRANTIES,WHETHER 17.Authorization of Signer and Credit Review.You represent that you may lawfully enter into,and perform, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF this Lease,that the individual signing this Lease on your behalf has all necessary authority to do so,and that all MERCHANTABILITY,NON-INFRINGEMENT AND FITNESS FOR PARTICULAR PURPOSE,AND XFS financial information you provide completely and accurately represents your financial condition.You agree to MAKES NO REPRESENTATIONS OF ANY KIND OR TYPE,INCLUDING,BUT NOT LIMITED TO,THE furnish financial information that XFS may request now,including your tax identification number,and you EQUIPMENT'S SUITABILITY,FUNCTIONALITY,DURABILITY,OR CONDITION.Since you have selected authorize XFS to obtain credit reports on you in the future should you default or fail to make prompt payments the Equipment and the Dealer,you acknowledge that you are aware of the name of the manufacturer of each underthis Lease. item of Equipment and agree that you will contact each manufacturer and/or Dealer for a description of any 18.Original and Sole Controlling Document;No Modifications Unless in Writing.This Lease constitutes warranty rights you may have underthe Equipment supply contract,sales order,orotherwise.Provided you are the entire agreement between the Parties as to the subjects addressed herein,and representations or not in default hereunder,XFS hereby assigns to you any warranty rights we may have against Dealer or statements not included herein are not part of this Lease and are not binding on the Parties.You agree thatan manufacturer with respect to the Equipment If the Equipment is returned to XFS,such rights are deemed executed copy of this Lease that is signed by your authorized representative and by XFS's authorized reassigned by you to XFS.IF THE EQUIPMENT IS NOT PROPERLY INSTALLED,DOES NOT OPERATE AS representative(an original manual signature or such signature reproduced by means of a reliable electronic WARRANTED,BECOMES OBSOLETE,OR IS UNSATISFACTORY FOR ANY REASON WHATSOEVER, form,such as electronic transmission of a facsimile or electronic signature)shall be marked'original'by XFS YOU SHALL MAKE ALL RELATED CLAIMS SOLELY AGAINST MANUFACTURER OR DEALER AND NOT and shall constitute the only original document for all purposes.All othercopies shall be duplicates.To the extent AGAINST XFS,AND YOU SHALL NEVERTHELESS CONTINUE TO PAY ALL LEASE PAYMENTS AND this Lease constitutes chattel paper(as defined in the UCC),no security interest in this Lease may be created OTHER SUMS PAYABLE UNDER THIS LEASE. except by the possession or transfer of the copy marked'original'by XFS.IF A PURCHASE ORDER OR 13.Liability and Indemnification.XFS IS NOT RESPONSIBLE FOR ANY LOSSES,DAMAGES,EXPENSES OTHER DOCUMENT IS ISSUED BY YOU,NONE OF ITS TERMS AND CONDITIONS SHALL HAVE ANY OR INJURIES OF ANY KIND OR TYPE,INCLUDING,BUT NOT LIMITED TO,ANY SPECIAL,INDIRECT, FORCE OR EFFECT,AS THE TERMS AND CONDITIONS OF THIS LEASE EXCLUSIVELY GOVERN THE INCIDENTAL,CONSEQUENTIAL OR PUNITIVE DAMAGES(COLLECTIVELY,"CLAIMS'),TO YOU OR TRANSACTION DOCUMENTED HEREIN.THE DEALER AND ITS REPRESENTATIVES ARE NOT OUR ANY THIRD PARTY CAUSED BY THE EQUIPMENT OR ITS USE,EXCEPT THOSE CLAIMS ARISING AGENTS AND ARE NOT AUTHORIZED TO MODIFY OR NEGOTIATE THE TERMS OF THIS LEASE.THIS DIRECTLY AND PROXIMATELY FROM XFS'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. In LEASE MAY NOT BE AMENDED OR SUPPLEMENTED EXCEPT IN A WRITTEN AGREEMENT SIGNED BY addition,except for Claims arising directly and proximately from XFS's gross negligence orwillful misconduct, AUTHORIZED REPRESENTATIVES OF THE PARTIES AND NO PROVISIONS CAN BE WAIVED EXCEPT you assume the risk of liability for,and hereby agree to indemnify and hold safe and harmless,and covenant to IN A WRITING SIGNED BY XFS.XFS's failure to object to terms contained in any communication from you will defend,XFS,its employees,officers and agents from and against:(a)any and all Claims(including legal not be a waiver or modification of the terns of this Lease.You authorize XFS to insert or cored missing expenses of every kind and nature)arising out of the manufacture,purchase,shipment and delivery of the information on this Lease,including but not limited to your proper legal name,lease numbers,serial numbers Equipment to you,acceptance or rejection,ownership,leasing,possession,operation,use,return or other and other information describing the Equipment,so long as there is no material impact to your financial disposition of the Equipment,including,without limitation,any liabilities that may arise from patent or latent obligations. defects in the Equipment(whether or not discoverable by you),any claims based on absolute tort liability or 19.Governing Law,Jurisdiction,Venue and JURY TRIAL WAIVER.THIS LEASE IS GOVERNED BY,AND warranty and any claims based on patent,trademark or copyright infringement;and(b)any and all loss or SHALL BE CONSTRUED IN ACCORDANCE WITH,THE LAWS OF THE STATE OF CONNECTICUT damage of or to the Equipment (WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD OTHERWISE REQUIRE 14,Default and Remedies.You will be in default under this Lease if(1)XFS does not receive any payment APPLICATION OF LAWS OF ANOTHER JURISDICTION).THE JURISDICTION AND VENUE OF ANY within 10 days after its due date,or(2)you breach any otherobligation under this Lease orany otheragreement ACTION TO ENFORCE THIS LEASE,OR OTHERWISE RELATING TO THIS LEASE,SHALL BE IN A with XFS.If you default,and such default continues for 10 days afterXFS provides notice to you,XFS may,in FEDERAL OR STATE COURT IN FAIRFIELD COUNTY,CONNECTICUT OR,EXCLUSIVELY AT XFS'S addition to other remedies(including requesting the Dealer to cease performing under the Maintenance OPTION,IN ANY OTHER FEDERAL OR STATE COURT WHERE THE EQUIPMENT IS LOCATED OR Agreement),require you to promptly return the Equipment as provided in Sections 5 and 6 hereof,and require WHERE XFS'S OR YOUR PRINCIPAL PLACES OF BUSINESS ARE LOCATED,AND YOU HEREBY WAIVE immediate payment,as liquidated damages for loss of bargain and not as a penalty,of the sum of.(a)all ANY RIGHT TO TRANSFER VENUE.THE PARTIES HEREBY WANE ANY RIGHT TO TRIAL BY JURY IN amounts then due,plus interest from the due date until paid at the rate of 1.5%per month;(b)the Lease ANY ACTION RELATED TO OR ARISING OUT OF THIS LEASE. Payments remaining in the Initial Lease Tern(including the fixed maintenance component thereof,If permitted 20.Miscellaneous.Yourobligations underthe'Taxes'and'Liability'Sections commence upon execution,and under the Maintenance Agreement),discounted at the Discount Rate to the date of default and(c)Taxes.In survive the expiration or earlier termination,of this Lease.Notices under this Lease must be in writing.Notices addition,if you do not return the Equipment as required above,you agree to pay XFS the fair market value to you will be sent to the'Billing Address'provided on the first page hereof,and notices to XFS shall be sent to thereof,as reasonably determined by XFS,as of the end of the Initial Lease Tenn,discounted at the Discount our address provided on the first page hereof.Notices will be deemed given 5 days after mailing by first class Rate to the date of default You agree to pay all reasonable costs,including aftomeys'fees and disbursements, mail or 2 days aftersending by nationally recognized overnightcourier.Invoices are not considered notices and incurred by XFS to enforce this Lease. are not governed by the notice terms hereof.You authorize XFS to communicate with you by any electronic 15.Risk of Loss and Insurance.You assume and agree to bear the entire risk of loss,that destruction or means(including cellular phone,email,automatic dialing and recorded messages)using any phone number other impairment of the Equipment upon delivery.You,at your own expense,(i)shall keep Equipment insured (including cellular)orelectronic address you provide to us.If a court finds any term ofthis Lease unenforceable, against loss or damage at a minimum of full replacement value thereof,and(ii)shall carry public liability the remaining terms will remain in effect The failure by either Party to exercise any right or remedy will not insurance against bodily injury,including death,and against property damage in the amount of at Ieast$2 million constitute a waiver of such right or remedy.If more than one party has signed this Lease as lessee,each such (collectively,'Required Insurance'.All such Required Insurance shall be with loss payable to'XFS, its party agrees that its liability is joint and several.The following four sentences control over every other part of successors and/or assigns,as their interests may appear,and shall be with companies reasonably acceptable this Lease.Both Parties will comply with applicable laws.XFS will not charge or collect any amounts in excess to XFS.In addition,XFS shall be similarly named as an additional insured on all public liability insurance policies. of those allowed by applicable law.Any pad of this Lease that would,but for the last four sentences of this The Required Insurance shall provide for 30 days'prior notice to XFS of cancellation. Section,be read under any circumstances to allow for a charge higher than that allowed under any applicable YOU MUST PROVIDE XFS OR OUR DESIGNEES WITH SATISFACTORY WRITTEN EVIDENCE OF legal limit,is modified by this Section to limit the amounts chargeable underthis Lease to the maximum amount REQUIRED INSURANCE WITHIN 30 DAYS OF THE INCEPTION DATE AND ANY SUBSEQUENT WRITTEN allowed under the legal limit.If,in any circumstances,any amount in excess of that allowed by law is charged REQUEST BY XFS OR OUR DESIGNEES.IF YOU DO NOT DO SO,THEN IN LIEU OF OTHER REMEDIES or received,any such charge will be deemed limited by the amount legally allowed and any amount received by FOR DEFAULT,XFS IN OUR DISCRETION AND AT OUR SOLE OPTION MAY(BUT IS NOT REQUIRED XFS in excess of that legally alloyed will be applied by us to the payment of amounts legally owed under this TO) OBTAIN INSURANCE FROM AN INSURER OF XFS'S CHOOSING, WHICH MAY BE AN XFS Lease or refunded to you. AFFILIATE,IN SUCH FORMS AND AMOUNTS AS XFS DEEMS REASONABLE TO PROTECT XFS'S ::�Istoner Initial Page 2 of 2 CPC-Final Rev.8.27.2014 PrintCare Cost Per Imo e A Agreement C-1 imageSi®fuircne 7 Managed Print Solutions g g 650 E Hospitality Lane,Suite 500 San Bernardino CA,92408 CUSTOMER INSTALL Agreement No. Full Legal Name City Of Palm Springs DBA Address City State ZIP Cod 3200 E Tahquitz Canyon Way Palm Springs CA 62262 CUSTOMER BILL TO Name same Address City State ZIP Code Phone760-323-8206 Contact NameAnthonyMejia Contact Email anthony.mejia@palmspringsca.gov Lessee PO#(Optional) Monthly Base Maintenance Payment=$ 0 Excess Per Image Charge stated in the below table Modelts) Black&White Monthly Allowance. Black&White Rdte Color Monthly Allowance Color Rate i jincluded in,Monthiv •-• in Monthlv Base Xerox Alta Link B8055(1) 0 .0049 NIA N/A DEFINITIONS:The words Customer,You and Your refer to customer indicated above.The words Company,We,Us and Our to Image Source. SERVICES OFFERED:We agree to provide all consumables,along with device environment monitoring,auto toner replenishment,proactive service error monitoring,phone technical support,service,and quarterly environment reporting under this Cost Per Image Agreement.Further information on the Service Management details are stated on the back of this document.Covered equipment,along with Cost Per Image pricing,is listed in the table above,or separately in Schedule(s)A,and/or B. IMAGE CHARGES:Payments are due monthly,beginning the date the Agreement is initiated(as noted by the Agreement date below)or any later date designated by Us(see "Transitional Billing"section below)and continuing on the same day of each following month until fully paid.You are entitled to make the total numberof images reflected in the Monthly Image Allowance shown in the table above,or separately in Schedule(s)A,and/or B,each month(if consolidated),orthe monthly amount Image Allowance Per Machine or Group(if not consolidated).If You use more than the applicable Allowance(s)in any month,You will pay Us an additional charge equal to the number of additional metered images multiplied by the applicable Excess Per Image Charge.If the meter reading required for periodic billing is not available,Company may bill for use based on an average volume for the most recent 3 months.You agree that We may proportionally increase Your Per Image Charges at any time if Our estimated average page coverage is exceeded in any month during the term of this Agreement.Each print made that is larger than 145 square inches may register as 2 prints on the meter.In addition to the foregoing,You agree that effective on each/any anniversary of this Agreement,We may annually increase both the Minimum Monthly Payment and the Excess Per Image Charge by amounts determined in Our discretion,but not to exceed ten percent (10%)of the then current payment and/or charge in each year.You agree to comply with billing and meter collection procedures designated by Us,including notifying Us of the meter reading on the billing date.If meters are not received,We reserve the right to estimate Your usage for the billing period. TRANSITIONAL BILLING:If We designate as the Agreement commencement date or effective date a date which is later than the date the Agreement is/was initiated(asnotedbythe Agreement Date below),then You shall pay Us an inter!m payment for each day,from the datethe Agreement istwas initiated until the commencement date,equal to the minimum monthly payment divided by 30.If this Cost Per Image Agreement has no minimum monthly amount(as designated in in the table above,or separately in Schedule(s)A,and/or B),We will bill You for actual pages copied or printed from the Agreement initiation date until the designated commencement date. GOVERNING LAW,CONSENT TO JURISDICTION AND VENUE OF LITIGATION:This Agreement and each addendum shall be governed by the laws of the State of California.You agree that any dispute arising under or related to this agreement will be adjudicated in the federal or state court located in San Bernardino.You hereby consent to personal jurisdiction and venue in that court and waive any right to transfer venue.Each party waives any right to a trial by jury. LATE FEES:If any amount payable to Us is not paid when due,You will pay Us a late charge equal to 1)a rate of 1.5%per month of balance overdue or 2)a minimum of$5 per month. The Customer will also pay collection costs and reasonable attorney's fees should the account be placed for collection. AGREEMENT PERIOD:This agreement is for a period of 60 months from the Agreement is initiated,and is non-cancelable.In addition to any other rights under this contract,Company may terminate this contract at any time by giving the Customer 30 day prior written notice.Unless notified in writing 30 days prior to the contract expiration date,this agreement shall renew for 12-monthperiods. City Clerk THIS AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS PRINTED ON THIS PAGE,THE REVERSE SIDE,AND,IF APPLICABLE,ATTACHED SCHEDULE(S)A AND/OR B,ALL OF WHICH PERTAIN TO THIS AGREEMENT AND WHICH YOU ACKNOWLEDGE HAVING READ.THIS AGREEMENT IS NOT BINDING UNTIL ACCEPTED BY US.YOU CERTIFY ALL ACTIONS REQUIRED TO AUTHORIZE EXECUTION OF THIS AGREEMENT,INCLUDING YOUR AUTHORITY,HAVE BEEN FULFILLED. IMAGE SOURCE:(As Stated Above) Abov By: Date Accepted: :_By, 1Date� q1 ' 7 o Ir Signature C- —1 Print Name&Title: int Name&Title: — ----- —O av. 1�e� C Ivi a n a r Page 1 of 2 v62019 VolP N (;IimiageSpurce■ rimtCa■ e, fi Managed Print Solutions 550 E Hospitality Lane,Suite500 San Bernardino,CA 92408 I. MAINTENANCE AND SUPPLIES. A. Cost Per Image Charges.The charges stated in the Agreement include charges for maintenance(from 8 a.m.to 5 p.m.local time,except weekends and holidays("Regular Service Hours"),inspection,adjustment,parts replacement,cleaning material required for proper operation,and toner and developer for such Equipment and may also include charges for such maintenance and supplies provided to You for the Equipment.Paper and staples are not included in this maintenance agreement.You must purchase staples separately,from Image Source.Color toner and developer supplies will be provided for production of pages,with an average 20%page coverage.Supplies required for production in excess of 20%page coverage will be invoiced separately.We may charge a fulfillment fee to cover equipment monitoring and supply replenishment and delivery. B. Equipment Eligible for Coverage.This only applies to the Equipment identified in the table on page one,or separately in Schedule(s)A,and/or B.You represent and warrant that, other than as set forth in the table on page one,or separately in Schedule(s)A,and/or B,there is no other equipment located at Your site(s)capable of using Our supplied toner and ink consumables.All Equipment capable of using Our supplied toner and ink consumables must be included in this Agreement.To the best of Your knowledge,there are no equipment conditions that do not meet manufacturers specifications("Pre-Existing Conditions',other than those specifically identified in the table on page one,or separately in Schedule(s)A and/ or B.You agree that We shall have the right to inspect and verify any Equipment covered by this Agreement which was previously owned by You.We reserve the right,at Our sole discretion,to exclude from this agreement any Equipment that We determine to have material faults,and/or to be unfit for service.If applicable,We may discount the Monthly Base Maintenance Payment by the amount reasonably allocated to any excluded Equipment. C. Definition of Services Provided.We agree(a)to perform only those repairs involving worn Equipment components that have failed during ordinary use of the Equipment under normal operating conditions(trays,covers and other non-consumable parts are not covered),and(b)to supply You with all toner and ink consumables required to operate the Equipment. Requests for services outside of Regular Service Hours will be provided on a best effort basis at Our prevailing time and material hourly rate.Such charges for services outside of Regular Service Hours are in addition to the prepaid Minimum Monthly Payment.This Agreement does not cover after-hours service,shop overhauls,and service made necessary by accident,fire,water,natural disasters,or failure by You to meet the manufacturer's electrical requirements. D.Access to Equipment.We shall have the right to access Your site and any other of Your premises that may house Equipment upon reasonable notice for access with Your supervision during regular work hours.We reserve the right to invoice You at Our prevailing time and material hourly rate,separate from the Minimum Monthly Payment,when access to the Equipment is denied for greater than fifteen(15)minutes,when You initiated the request for service.We shall apply an estimated monthly page volume to any and all Equipment that cannot be accessed for page count recording purposes. E. Authorized Maintenance Providers.We,at Our discretion,may authorize Our approved maintenance subcontractors or approved service providers to perform maintenance and repairs to the Equipment.In cases where We manage Your third party service agreement on Your behalf,then all sums currently due under that agreement must be paid in full before We will assume any obligation or responsibility. F. Repair Responsibility.Maintenance services excludes repairs due to:(a)misuse,neglect or abuse;(b)failure of the installation site or the PC or workstation used with the Equipment to comply with manufacturer's published specifications;(c)use of options,accessories or products not serviced by Us;(d)non-Image Source alterations,relocation, service or supplies;or(e)failure to perform operator maintenance procedures identified in operator manuals,or(f)failure by You to meet the manufacturer's electrical requirements. G.Analyst Services.We agree to provide Analyst Services,at no additional charge,for the first 90 days of this Agreement.After 90 days,You agree to pay Us periodic charges for Analyst Services.We shall discontinue billing or debiting Analyst Services upon receipt of a written request to discontinue Analyst Services support for Equipment.Upon cancellation, You agree to bear the entire cost of Analyst Services related to the Equipment covered by this Agreement. H.Ownership and Control of Toner and Ink Consumables.All toner and ink consumables supplies provided under this Agreement shall at all times remain the property of Us.You may use the toner and ink consumables pursuant to the terms of this Agreement,but You shall not have any ownership rights in or to the toner or ink consumables.You shall not be charged for any toner or ink consumables in use upon the expiration of this Agreement.The ordering of consumables significantly in excess of the number of copies or prints produced may be charged to You by Us. I. Additional Equipment and Right of Inspection.1.You shall notify Us promptly upon installing any additional equipment("Additional Equipment")at Your site capable of using Our supplied toner and ink consumables.Equipment installed subsequent to the date of this Agreement will be evaluated by Us,and included in,or excluded from,this Agreement at the sole discretion of Us.2.Additional Equipment deemed included in the Agreement by Us shall be added to this Agreement and will automatically be covered by and considered Equipment under the terms of this Agreement.Billings or surcharges for Additional Equipment output will be reflected in the billing cycle immediately following the billing cycle in which the Additional Equipment is installed.If You add Additional Equipment,the Minimum Monthly Payment may be adjusted accordingly,at Our sole discretion.3.If any such Additional Equipment is used equipment,You represent and warrant to Us that,except for Pre-Existing Conditions duly disclosed to Us prior to such Additional Equipment being covered by this Agreement,all of the Additional Equipment shall,on the date such coverage commences,be in good working order.We shall be entitled to take a physical inventory of the Additional Equipment,upon or prior to its being covered by this Agreement,to determine whether they are in working order.In the event,as of the date coverage commences under this Agreement,any Additional Equipment is not in good working order,You shall have such Additional Equipment repaired at Your sole expense and,until such Additional Equipment is so repaired,any Additional Equipment with Pre-Existing Conditions shall not be covered under this Agreement.An initial meter reading of zero(0)is agreed,unless You provide timely information to the contrary,for any Additional Equipment that meets the conditions of 1.1. 11.WARRANTY.Notwithstanding anything in this Agreement to the contrary,We warrant(a)that all personnel performing services hereunder by or on behalf of Us will have appropriate training and experience and(b)all equipment is in accordance with industry standards,and all supplies and materials are of good quality.Without limiting the generality of the foregoing (and without limiting any obligation of Us to make repairs under this Agreement),You expressly agree and acknowledge that in no event shall any manufacturer's warranty,including but not limited to any implied warranty of merchantability,and fitness for a particular purpose,be deemed given by or otherwise transferred or applied to Us.If You notify Us within ninety (90)days from perfornance of the services that the services or a part thereof fails to conform to the standards specified herein,Your sole and exclusive remedy is that We shall promptly repair,replace,or re-perform the non-conforming services. III. MONITORING SOFTWARE. A.You grant Permission to Install and Maintain Software.We license software("Monitoring Software")that enables Us to monitor the usage of,and the copy count produced on,the Equipment.You agree that We shall have the right,at any time during the term of this Agreement,to install the Monitoring Software on one or more of Your computer networked station(s).You agree to provide Us,during normal business hours,access to Your computer-networked station(s)to enable Us to upgrade,modify or maintain the Monitoring Software or to install new releases or additions to the Monitoring Software.Under no circumstances will the Monitoring Software provide Us access to Your information other than information directly related to this Agreement.You agree to not delete or remove the Monitoring Software or to alter,modify or otherwise render it unusable during the term of this Agreement without the prior written consent of Us.If You disagree,then We retain the right to invoice You the prevailing hourly billable rate for labor required to obtain meter readings,per meter reading cycle. B. No License,other Prohibitions.Nothing herein shall be construed as granting a license to You for the use of the Monitoring Software.You may not,nor may You permit or cause any other person to(a)use or copy the Monitoring Software,in whole or in part,in any manner,(b)modify,translate,reverse engineer,decompile or dissemble the Monitoring Software,(c) rent,lease,loan,resell,distribute,use in a customer-server network to provide third parties access to,or otherwise transfer the Monitoring Software,or(d)remove any proprietary notices on the Monitoring Software. C. Intellectual Property Rights.All rights(including all intellectual property rights,whether recognized currently or in the future)in and to the Monitoring Software(including anysource code,executable code,object code,tools and/or libraries related to the Monitoring Software)will at all times be owned by Us.No modifications and/or use by You of the Monitoring Software shall under any circumstances transfer any right,title or interest in or to the Monitoring Software to You or any third party. D. Monitoring Software Warranty,Liability.You acknowledge that the Monitoring Software will be installed on Your networked workstation(s)"as is"without warranty of any kind,either express or implied,including the implied warranties of merchantability,fitness for a particular purpose and non-infringement.We do not warrant that the Monitoring Software will be error free or will operate without interruption.We shall in no event be liable to You or any third party for any special,consequential,incidental or indirect damages in connection with the Monitoring Software.If the software is found to cause issues on Your network,and these issues can be reasonably associated to the installation of the software through uniform software testing and tracing methodologies,Our liability will be limited to the removal of said Monitoring Software from Your environment. IV.MISCELLANEOUS. A.Software.Performance issues related to Software and/or connectivity are not covered under the terms of this Agreement.Any warranties related to Software will be those offered by the manufacturer and will be passed directly to the user. B. Software/Hardware.Connectivity and performance issues related to Software and non-standard hardware are not covered under the terms of this Agreement.Any warranties related to these solutions,which include but are not be limited to:Xerox ConnectKey Applications,PaperCut,XMedius Fax,Umango,Square9,Ysoft,Nuance,Formax,NeoPost,or Xerox FreeFlow,any computers and scanners,will be those offered by the manufacturer and passed directly to the user.Operation and configuration of the Software will be the responsibility of You after initial install and operation test is completed by Us. CuSEWUI Initia Page 2 of 2 v5.20.19 Xerox Financial Services LLC 201 Merritt 7 r®x Norwalk,CT 06851 •o Addendum to Xerox Financial Services LLC Lease Agreement#020-0036746 The following sections replace or modify the corresponding sections in the Agreement and are hereby incorporated therein. In the event of any conflict between the terms of the Agreement and the terms below, the terms below shall control. Section 1.Definitions:Remove sentence which reads:Origination Fee"means a one-time fee of$125 billed on your first invoice which you agree to pay,covering the origination,documentation,processing and certain other initial costs for the Lease. Section 2.Lease,Payments and Late Payments.The following language is deleted.If any payment is not paid in full within 5 days after its due date,you will pay a late charge of the greater of 10%of the amount due or$25,not to exceed the maximum amount permitted by law. Section S.Equipment Ownership,Labeling and UCC Filing.The following language is removed.You agree to pay any filing fees and administrative costs for the filing of such financing statements. Additional Section: Non-Appropriation.Your obligation to pay the Lease Payments and any other amounts due is contingent upon approval of the appropriation of funds by your governing body.In the event funds are not appropriated for any fiscal period equal to amounts due under the Lease,and you have no other funds legally available to be allocated to the payment of your obligations under this Lease,you may terminate the Lease effective on the first day of such fiscal period("Termination Date")if: (a)you have used due diligence to exhaust all funds legally available;and(b)XFS has received written notice from you at least 30 days before the Termination Date.At XFS's request,you shall promptly provide supplemental documentation as to such non-appropriation.Upon the occurrence of such non- appropriation,you shall not be obligated for payment of any Lease Payment for any fiscal period for which funds have not been so appropriated,and you shall promptly deliver the Equipment to the Dealer(or such other party as we may designate)as set forth in the return provisions of the Lease. Customer Acceptance- Lessor Acceptance: PALM SPRIN I CITY O Xerox Financial Services Authorized Signor: ��� Accepted by: Print Name: mow: d r2eac)�� Name: Title: i NI a r� ✓ Title: Date: j!� o Date: *Signor for the Lease Agreement and the Addendum must be the same. AMFRQfl'MT .- R !,VkCr.R SST: o-I l Z(o 1`�... fv zie_rk P ge 1 of 1 Xerox Financial Services LLC 45 Glover Avenue Cost Per Copy Agreement Xerox. ' Norwalk,CT 06856 Lease Agreement t 0036746 1 Dealer Name: Image Source LESSEE INFORMATION Full Legal Name DBA Cit of Palm Springs Billing Address city State ZIP Code 3200 E.Tah uitz Canyon Palm Springs CA 92262 Phone Contact Name Contact Email Lessee POq(Optional) (760) 323-8206 thonv Me'ia Anthon .me'ia@ alms rin sca. ov EQUIPMENT Quantity Model and Description Quantity I Model and Description 20 Xerox Altal-ink B8055 1 Xerox Versa Link 13605/X (BW Excess Charge @ .019) 6 Xerox Alta Link C8055 2 Xerox Altal-ink C8070 Equipment Location(if different from Billing Address) TERM 1 PAYMENT IMAGE TYPE IMAGES INCLUDED EXCESS CHARGE PRINTS INCLUDED EXCESS CHARGE B&W 0 .0049 Initial Lease Term(in months): 60 Color 0 .049 Annual Lease Payment:$107,224.07 Everyday Color N/A N/A Includes applicable taxes.Payment may be Color Level 2 N/A N/A adjusted according to current tax rates. Color Level 3 N/A N/A LESSEE ACCEPTANCE BY YOUR SIGNATURE BELOW,YOU ACKNOWLEDGE THAT YOU ARE ENTERING INTO A NON-CANCELLABLE LEASE AND THAT YOU HAVE READ AND AGREED TO ALL APPLICABLE TE NDLONDITIONS SET_EDBXy ON P ES 1 AND 2 OF THIS LEASE. r e Signer !Date Federal Tax ID p(Required) X' 95-6000757 Print Name Title(irlilicate Presid nt,Partner,Proprietor,etc.) David H Read Cit Mana er LESSOR Accepted By:Xerox Financial Services LLC Name and Title Date CONDITIONSTERMS& 1.Definitions.The words"you"and"your mean the legal entity identified in"Lessee Information"above,and 5.End of Lease Options.If you are not in default and if you provide no greater than 150 days and no less than "XFS,""we,""us""Lessor"and"our"means Xerox Financial Services LLC."Party"means you or XFS,and 60 days'prior written notice to XFS,you may,at the end of the Initial Lease Term,either(a)purchase all,but "Parties"means both you and XFS."Dealer"means the entity identified in"Dealer Name"above."Discount Rate" not less than all,of the Equipment"AS IS,WHERE IS"and WITHOUT ANY WARRANTY AS TO CONDITION means a rate equal to the 1-year Treasury Constant Maturity rate as published in the Selected Interest Rates OR VALUE at the time of purchase by paying its fair market value,as determined by XFS in its sole but table of the Federal Reserve statistical release H.15(519) or successor publication for the week ending reasonable discretion,plus Taxes,(b)enter into a new lease on mutually agreeable terms,or(c)de-install and immediately prior to the Inception Date."Equipment"means the items identified in"Equipment"above and in return the Equipment,at your expense,fully insured,to a continental US location XFS specifies.If you have not any attached Equipment schedule,plus any Software(as defined in Section 3 hereof),attachments,accessories, elected one of the above options,you shall be deemed to have entered into a new lease with a 3 month term replacements,replacement parts,substitutions,additions and repairs thereto."Excess Charges"means the on terms and conditions identical to this Lease,except that either party may terminate the new lease at the end applicable excess copies and/or prints charges. "Inception Date"means(a)the date Dealer determines of its 3 month term on 30 days'prior written notice and,when this new lease terminates,shall take one of the Equipment installed by Dealer is operating satisfactorily and is available for your use,or(b)the date Equipment actions identified in(a)(b)or(c)in the preceding sentence or be deemed to have entered into another new identified by Dealer as being installable by you is delivered to your premises."Lease"means this Cost Per Copy lease with a 3 month term as provided herein.Any purchase option shall be exercised with respect to each item Agreement,including any attached Equipment schedule."Lease Payment"means the Annual Lease Payment of Equipment on the day immediately following the date of expiration of the Lease Term of such item,and by specified above,which includes the fixed component of maintenance charges payable to Dealer under the the delivery atsuch time by you to XFS of payment,in cash or by certified check,of the amountof the applicable Maintenance Agreement,the Excess Charges(unless otherwise agreed by you,Dealer and XFS),and other purchase price for the Equipment.Upon payment of the applicable amount,XFS shall,upon your request, charges you,Dealer and XFS agree will be invoiced in advance by XFS on an Annual basis,plus Taxes. execute and deliver to you a bill of sale for the Equipment on an"AS IS,""WHERE IS,""WITH ALL FAULTS" "Maintenance Agreement"means a separate agreement between you and Dealer for maintenance and support basis,without representation or warranty of any kind or nature whatsoever.After such payment,you may trade- purposes."Origination Fee"means a one-time fee of$125 billed on your first invoice which you agree to pay, in the Equipment as part of another transaction with XFS and,if you do,you must pass unencumbered title of covering the origination,documentation,processing and certain other initial costs for the Lease.'Term"means the Equipment being traded-in to XFS. the Initial Lease Term plus any subsequent renewal or extension terms."UCC"means the Uniform Commercial 6.Equipment Return.If the Equipment is returned to XFS,it shall be in the same condition as when delivered Code of the State of Connecticut(C.G.S.A.§§42a-1-101 et seq.). to you,normal wear and tear accepted and,if not in such condition,you will be liable for all expenses XFS incurs 2.Lease,Payments and Late Payments.You agree and represent all Equipment was selected,configured to return the Equipment to such"normal wear and tear"condition.IT IS SOLELY YOUR RESPONSIBILITY TO and negotiated by you based upon your own judgment and has been,or is being,supplied by Dealer.At your SECURE ANY SENSITIVE DATA AND PERMANENTLY DELETE SUCH DATA FROM THE INTERNAL request,XFS has acquired,or will acquire,the same to lease to you under this Lease and you agree to lease MEDIA STORAGE PRIOR TO RETURNING THE EQUIPMENT TO XFS.YOU SHALL HOLD XFS HARMLESS the same from XFS.The Initial Lease Term,which is indicated above,commences on the Inception Dale.You FROM YOUR FAILURE TO SECURE AND PERMANENTLY DELETE ALL SUCH LESSEE DATA AS agree to pay XFS the first Lease Payment 30 days after the Inception Date;each subsequent Lease Payment, OUTLINED IN THIS SECTION. which may include charges you,Dealer and XFS agree will be invoiced by us,shall be payable on the same 7.Meter Readings and Annual Adjustments.Unless otherwise agreed by you and XFS,you will provide meter date annually thereafter,whether or not XFS invoices you.If any payment is not paid in full within 5 days readings on all Equipment subject to this Lease at the end of each month during the Initial Lease Term and any after its due date,you will pay a late charge of the greater of 10%of the amount due or$25,not to exceed additional Term.If you do not provide a timely meter reading,XFS may estimate such reading and invoice you the maximum amount permitted by law.For each dishonored or returned payment,you will be assessed the accordingly.If XFS does estimate any meter readings,XFS will make appropriate adjustments on subsequent applicable returned item fee,which shall not exceed$35.Restrictive covenants on any method of payment will invoices to you after receiving the actual meter readings from you for the Equipment.At any time after 12 months be ineffective. from the Inception Date and for each successive 12 month period thereafter during the Initial Lease Term and 3.Equipment and Software.To the extent that the Equipment includes intangible property or associated any 3 month extended Term,XFS may increase your Annual Lease Payment and the Excess Charges by a services such as software licenses,such intangible property shall be referred to as"Software."You acknowledge maximum of fifteen percent(15%)of the then-current Annual Lease Payment therefor and you agree to pay and agree that that XFS has no right,title or interest in the Software and you will comply throughout the Lease such increased amounts. Term with any license and/or other agreement('Software License")with the supplier of the Software("Software S.Equipment Delivery and Maintenance.Equipmentwill be delivered to you by Dealer at the location specified Supplier").You are responsible for entering into any required Software License with the Software Supplier no on the first page hereof or in an Equipment schedule,and you agree to execute a Delivery&Acceptance later than the Lease Inception Date.You agree the Equipment is for your lawful business use in the United Certificate at XFS's request(and confirm same via telephone and/or electronically)confirming that you have States(including its possessions and territories),will not be used for personal,household or family purposes, received,inspected and accepted the Equipment, and that XFS is authorized to fund the Dealer for the and is not being acquired for resale.You will not attach the Equipment as a fixture to real estate or make any Equipment If you reject the Equipment,you assume all responsibility for any purchase order or other contract permanent alterations to it. issued on your behalf directly with Dealer.Equipment may not be moved to another location without first 4.Non-Cancellable Lease.THIS LEASE CANNOT BE CANCELLED OR TERMINATED BY YOU PRIOR TO obtaining XFS's written consent,which shall not be unreasonably withheld.You shall permit XFS to inspect THE END OF THE INITIAL LEASE TERM.YOUR OBLIGATION TO MAKE ALL LEASE PAYMENTS,AND Equipment and any maintenance records relating thereto during your normal business hours upon reasonable TO PAY ALL OTHER AMOUNTS DUE OR TO BECOME DUE,IS ABSOLUTE AND UNCONDITIONAL AND notice.You represent you have entered into a Maintenance Agreement with Dealer to maintain the Equipment NOT SUBJECT TO DELAY,REDUCTION,SET-OFF,DEFENSE,COUNTERCLAIM OR RECOUPMENT FOR in good working order in accordance with the manufacturer's maintenance guidelines,and to provide you with ANY REASON WHATSOEVER,IRRESPECTIVE OF THE PERFORMANCE OF THE EQUIPMENT,DEALER, supplies for use with the Equipment.You understand and acknowledge that XFS is acting solely as an ANY THIRD PARTY OR XFS.Any pursued claim by you against XFS for alleged breach of our obligations administrator for Dealer with respect to the billing and collecting of the charges under the Maintenance hereunder shall be asserted solely in a separate action;provided,however,that your obligations under this Agreement and Excess Charges included in the Lease Payments.IN NO EVENT WILL XFS BE LIABLE TO Lease shall continue unabated. YOU FOR ANY BREACH BY THE DEALER OF ANY OF ITS OBLIGATIONS TO YOU,NOR WILL ANY OF Page 1 of 2 CPC-Final Rev.8.27.2014 YOUR OBLIGATIONS UNDER THIS LEASE BE AFFECTED,MODIFIED,RELEASED OR EXCUSED BY ANY ALLEGED BREACH BY DEALER. INTERESTS(COLLECTIVELY"EQUIPMENT INSURANCE").EQUIPMENT INSURANCE WILL COVER THE 9.Equipment Ownership,Labeling and UCC Filing.If and to the extent a court deems this Lease to be a EQUIPMENT AND XFS;IT WILL NOT NAME YOU AS AN INSURED AND MAY NOT COVER ALL OF YOUR security agreement under the UCC,and otherwise for precautionary purposes only,you grant XFS a first priority INTEREST IN THE EQUIPMENT AND WILL BE SUBJECT TO CANCELLATION AT ANY TIME.YOU AGREE security interest in your interest in the Equipment and all proceeds thereof in order to secure your performance TO PAY XFS PERIODIC CHARGES FOR EQUIPMENT INSURANCE (COLLECTIVELY "INSURANCE under this Lease.XFS is and shall remain the sole owner of the Equipment,except the Software.XFS may label CHARGES") THAT INCLUDE: AN INSURANCE PREMIUM THAT MAY BE HIGHER THAN IF YOU the Equipment to identify our ownership interest in it.You authorize XFS to file by any permissible means a UCC MAINTAINED THE REQUIRED INSURANCE SEPARATELY;A FINANCE CHARGE OF UP TO 1.5%PER financing statement to show,and to do all other acts to protect,our interest in the Equipment You agree to pay MONTH ON ANY ADVANCES MADE BY XFS OR OUR AGENTS;AND COMMISSIONS,BILLING AND any filing fees and administrative costs for the filing of such financing statements.You agree to keep the PROCESSING FEES;ANY OR ALL OF WHICH MAY GENERATE A PROFIT TO XFS OR OUR AGENTS. Equipment free from any liens or encumbrances and to promptly notify XFS if there is any change in your XFS MAY ADD INSURANCE CHARGES TO EACH LEASE PAYMENT.XFS shall discontinue billing or organization such that a refiling or amendment to XFS's UCC financing statement against you becomes debiting Insurance Charges for Equipment Insurance upon receipt and review of satisfactory evidence of necessary. Required Insurance. 10.Assignment.YOU MAY NOT ASSIGN,SELL,PLEDGE,TRANSFER,SUBLEASE OR PART WITH You must promptly notify XFS of any loss or damage to Equipment which makes any item of Equipment POSSESSION OF THE EQUIPMENT,THIS LEASE OR ANY OF YOUR RIGHTS OR OBLIGATIONS UNDER unfit for continued or repairable use.You hereby irrevocably appoint XFS as your Insurance. Insurance fact to execute THIS LEASE(COLLECTIVELY"ASSIGNMENT'S WITHOUT XFS'S PRIOR WRITTEN CONSENT,WHICH and endorse all checks a or ftsEquipment in your name to collectreceived any such Required Insurance.Insurance proceeds SHALL NOT BE UNREASONABLY WITHHELD, BUT SUBJECT TO THE SOLE EXERCISE OF XFS'S from Required Insurance the Equipment Insurance ren ved shall be applied,at XFS's option,to(x)restore the REASONABLE CREDIT DISCRETION AND EXECUTION OF ANY NECESSARY ASSIGNMENT Equipment so that in is in the same condition as when delivered di you(normal wear and tear excepted),to er, DOCUMENTATION.If XFS agrees to an Assignment,you agree to pay the applicable assignment fee and o the Equipment is not restorable,to replace it like-kind condition Equipment from the same manufacturer, reimburse XFS for any costs we incur in connection with that Assignment.XFS may sell,assign or transfer all or(z)pay to XFS the greater of(i)the total unpaid Lease Payments for the entire term hereof(discounted to or any part of the Equipment,this Lease and/or any of our rights(but none of our obligations)under this Lease. present value at the Discount Rate)plus countXFS' residual interest in such Equipment(herein agreed to be 20u of XFS's assignee will have the same rights that we have to the extent assigned(but none of our obligations)and the Equipment's original cast to XFS,discounted to value of th Eqvalui meat at Discount Rate)plus any other amounts YOU AGREE NOT TO ASSERT AGAINST SUCH ASSIGNEE ANY CLAIMS,DEFENSES,COUNTERCLAIMS, due e r under this Lease,or Oii)the fair market DAMAGET of the Equipment immediately prior to the loss S damage, RECOUPMENTS,OR SET-OFFS THAT YOU MAY HAVE AGAINST XFS.XFS agrees and acknowledges that as determined by XFS. LI LOSS OR DAMAGE O EQUIPMENT,OR LIGAXFS' RECEIPT OF INSURANCE any Assignment by us will not materially change your obligations under this Lease. PROCEEDS,SHALL RELIEVE YOU pm ANY OF YOUR REMAINING OBLIGATIONS UNDER THIS LEASE. Notwithstanding procurement of Equipment Insurance or Required Insurance,you remain primarily liable for 11.Taxes.You will be responsible for,indemnify and hold XFS harmless from,all applicable taxes,fees or performance under subclauses(x),(y)or(z)in the third sentence of this paragraph in the event the applicable charges(including sales,use,personal property and transfer taxes,other than net income taxes),plus interest insurance carrier fails or refuses to pay any claim.YOU AGREE(I)TO ARBITRATE ANY DISPUTE WITH XFS, and penalties,assessed by any governmental entity on the Equipment,this Lease or the amounts payable under OUR AGENTS OR ASSIGNS REGARDING THE EQUIPMENT INSURANCE AND/OR INSURANCE this Lease(collectively,'Taxes"),which will be included in XFS's invoice to you unless you timely provide CHARGES UNDER THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION IN FAIRFIELD continuing proof of your tax exempt status.If Equipment is delivered to a jurisdiction where certain taxes are COUNTY,CT,(II)THAT ARBITRATION(NOT A COURT)SHALL BE THE EXCLUSIVE REMEDY FOR SUCH calculated and paid at the time of lease initiation,you authorize XFS to finance and adjust your Lease Payment DISPUTES;AND(III)THAT CLASS ARBITRATION IS NOT PERMITTED.This arbitration requirement does to include such Taxes over the Initial Lease Term unless you require otherwise.Unless and until XFS notifies not apply to any other provision of this Lease. you in writing to the contrary,XFS will file all personal property tax returns covering the Equipment,pay the 16.Finance Lease and Lessee Waivers.The parties agree this Lease is a"finance lease"under UCC personal property taxes levied or assessed thereon,and collect from your account all personal property taxes Article 2A.You waive,solely against XFS and its successors and assigns,(a)all rights and remedies on the Equipment.This is a true lease for all income tax purposes and you will not claim any credit or deduction conferred on a lessee under Article 2A(Sections 508.522)of the UCC(C.G.S.A.§§42a-2A-724-737),and for depreciation of the Equipment,or take any other action inconsistent with your status as lessee of the (b)any rights you now or later may have which require XFS to sell,lease or otherwise use any Equipment Equipment to reduce our damages including our realization of the remaining value of the Equipment,or which may 12.Equipment Warranty Information and Disclaimers.XFS IS MERELY A FINANCIAL INTERMEDIARY, otherwise limit or modify any of our rights or remedies. AND HAS NO INVOLVEMENT IN THE SALE,DESIGN,MANUFACTURE,CONFIGURATION,DELIVERY, 17.Authorization of Signer and Credit Review.You represent that you may lawfully enter into,and perform, INSTALLATION, USE OR MAINTENANCE OF THE EQUIPMENT.THEREFORE,WITH RESPECT TO this Lease,that the individual signing this Lease on your behalf has all necessary authority to do so,and that all EQUIPMENT,XFS DISCLAIMS,AND YOU WANE SOLELY AGAINST XFS,ALL WARRANTIES,WHETHER financial information you provide completely and accurately represents your financial condition.You agree to EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF furnish financial information that XFS may request now,including your tax identification number,and you MERCHANTABILITY, NON-INFRINGEMENT AND FITNESS FOR PARTICULAR PURPOSE,AND XFS authorize XFS to obtain credit reports on you in the future should you default or fail to make prompt payments MAKES NO REPRESENTATIONS OF ANY KIND OR TYPE,INCLUDING,BUT NOT LIMITED TO,THE under this Lease. EQUIPMENT'S SUITABILITY,FUNCTIONALITY,DURABILITY,OR CONDITION.Since you have selected the Equipment and the Dealer,you acknowledge that you are aware of the name of the manufacturer of each 18,Original and Sole Controlling Document;No Modifications Unless in Writing.This Lease constitutes item of Equipment and agree that you will contact each manufacturer and/or Dealer for a description of any the entire agreement between the Parties as to the subjects addressed herein, and representations or warranty rights you may have under the Equipment supply contract,sales order,or otherwise.Provided you are statements not included herein are not part of this Lease and are not binding on the Parties.You agree that an not in default hereunder,XFS hereby assigns to you any warranty rights we may have against Dealer or executed copy of this Lease that is signed by your authorized representative and by XFS's authorized manufacturer with respect to the Equipment.If the Equipment is returned to XFS,such rights are deemed representative(an original manual signature or such signature reproduced by means of a reliable electronic reassigned by you to XFS.IF THE EQUIPMENT IS NOT PROPERLY INSTALLED,DOES NOT OPERATE AS form,such as electronic transmission of a facsimile or electronic signature)shall be marked"original"by XFS WARRANTED,BECOMES OBSOLETE,OR IS UNSATISFACTORY FOR ANY REASON WHATSOEVER, and shall constitute the only original document for all purposes.All other copies shall be duplicates.To the extent YOU SHALL MAKE ALL RELATED CLAIMS SOLELY AGAINST MANUFACTURER OR DEALER AND NOT this Lease constitutes chattel paper(as defined in the UCC),no security interest in this Lease may be created AGAINST XFS,AND YOU SHALL NEVERTHELESS CONTINUE TO PAY ALL LEASE PAYMENTS AND except by the possession or transfer of the copy marked"original"by XFS.IF A PURCHASE ORDER OR OTHER SUMS PAYABLE UNDER THIS LEASE. OTHER DOCUMENT IS ISSUED BY YOU,NONE OF ITS TERMS AND CONDITIONS SHALL HAVE ANY 13.Liability and Indemnification.XFS IS NOT RESPONSIBLE FORANY LOSSES,DAMAGES,EXPENSES FORCE OR EFFECT,AS THE TERMS AND CONDITIONS OF THIS LEASE EXCLUSIVELY GOVERN THE OR INJURIES OF ANY KIND OR TYPE,INCLUDING,BUT NOT LIMITED TO,ANY SPECIAL,INDIRECT, TRANSACTION DOCUMENTED HEREIN.THE DEALER AND ITS REPRESENTATIVES ARE NOT OUR INCIDENTAL,CONSEQUENTIAL OR PUNITIVE DAMAGES(COLLECTIVELY,"CLAIMS"),TO YOU OR AGENTS AND ARE NOT AUTHORIZED TO MODIFY OR NEGOTIATE THE TERMS OF THIS LEASE.THIS ANY THIRD PARTY CAUSED BY THE EQUIPMENT OR ITS USE, EXCEPT THOSE CLAIMS ARISING LEASE MAY NOT BE AMENDED OR SUPPLEMENTED EXCEPT IN A WRITTEN AGREEMENT SIGNED BY DIRECTLY AND PROXIMATELY FROM XFS'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. In AUTHORIZED REPRESENTATIVES OF THE PARTIES AND NO PROVISIONS CAN BE WAIVED EXCEPT addition,except for Claims arising directly and proximately from XFS's gross negligence or willful misconduct, IN A WRITING SIGNED BY XFS.XFS's failure to object to terms contained in any communication from you will you assume the risk of liability for,and hereby agree to indemnify and hold safe and harmless,and covenant to not be a waiver or modification of the terms of this Lease.You authorize XFS to insert or correct missing defend,XFS,its employees,officers and agents from and against:(a)any and all Claims(including legal information on this Lease,including but not limited to your proper legal name,lease numbers,serial numbers expenses of every kind and nature)arising out of the manufacture,purchase,shipment and delivery of the and other information describing the Equipment,so long as there is no material impact to your financial Equipment to you,acceptance or rejection,ownership,leasing,possession,operation,use,return or other obligations. disposition of the Equipment,including,without limitation,any liabilities that may arise from patent or latent 19.Governing Law,Jurisdiction,Venue and JURY TRIAL WAIVER.THIS LEASE IS GOVERNED BY,AND defects in the Equipment(whether or not discoverable by you),any claims based on absolute tort liability or SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CONNECTICUT warranty and any claims based on patent,trademark or copyright infringement;and(b)any and all loss or (WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD OTHERWISE REQUIRE damage of or to the Equipment. APPLICATION OF LAWS OF ANOTHER JURISDICTION).THE JURISDICTION AND VENUE OF ANY 14.Default and Remedies.You will be in default under this Lease if(1)XFS does not receive any payment ACTION TO ENFORCE THIS LEASE, OR OTHERWISE RELATING TO THIS LEASE,SHALL BE IN A ill within 10 days after its due date,or you breach any other obligation under this Lease or any other agreement FEDERAL OR STATE COURT IN FAIRFIELD COUNTY,CONNECTICUT OR,EXCLUSIVELY AT XFS'S with XFS.If you default,and such default continues for 10 days after XFS provides notice to you,XFS may,in OPTION, ANY OTHER FEDERAL STATE COURT WHERE THE EQUIPMENT IS LOCATED OR addition to other remedies (including requesting the Dealer to cease performing under the Maintenance WHERE XFS'S OR YOUR PRINCIPAL PLACES BUSINESS ARE LOCATED,AND YOU HEREBY WAIVE Agreement),require you to promptly return the Equipment as provided in Sections 5 and 6 hereof,and require ANY RIGHT TO TRANSFER VENUE.THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN immediate payment,as liquidated damages for loss of bargain and not as a penalty,of the sum of:(a)all ANY ACTION RELATED TO OR ARISING OUT OF THIS LEASE. amounts then due,plus interest from the due date until paid at the rate of 1.5%per month;(b)the Lease 20.Miscellaneous.Your obligations under the"Taxes"and"Liability"Sections commence upon execufion,and Payments remaining in the Initial Lease Term(including the fixed maintenance component thereof,if permitted survive the expiration or earlier termination,of this Lease.Notices under this Lease must be in writing.Notices under the Maintenance Agreement),discounted at the Discount Rate to the date of default,and(c)Taxes.In to you will be sent to the"Billing Address'provided on the first page hereof,and notices to XFS shall be sent to addition,if you do not return the Equipment as required above,you agree to pay XFS the fair market value our address provided on the first page hereof.Notices will be deemed given 5 days after mailing by first class thereof,as reasonably determined by XFS,as of the end of the Initial Lease Term,discounted at the Discount mail or 2 days after sending by nationally recognized overnight courier.Invoices are not considered notices and Rate to the date of default.You agree to pay all reasonable costs,including attorneys'fees and disbursements, are not governed by the notice terms hereof.You authorize XFS to communicate with you by any electronic incurred by XFS to enforce this Lease. means(including cellular phone,email,automatic dialing and recorded messages)using any phone number 15.Risk of Loss and Insurance.You assume and agree to bear the entire risk of loss,theft,destruction or (including cellular)or electronic address you provide to us.If a court finds any term of this Lease unenforceable, other impairment Lost a the Equipment u on assume You,at our own th ener shall loss, Equipment insured the remaining terms will remain in effect.The failure by either Party to exercise any right or remedy will not pp ry' y p () pconstitute a waiver of such right or remedy.If more than one party has signed this Lease as lessee,each such against loss or damage at a minimum of full replacement value thereof,and(ii)shall carry public liability party agrees that its liability is joint and several.The following four sentences control over every other part of insurance against bodily injury,including death,and against property damage in the amount of at least$2 million this Lease.Both Parties will comply with applicable laws.XFS will not charge or collect any amounts in excess (collectively,"Required Insurance").All such Required Insurance shall be with loss payable to"XFS,its of those allowed by applicable law.Any part of this Lease that would,but for the last four sentences of this successors and/or assigns,as their interests may appear,"and shall be with companies reasonably acceptable Section,be read under any circumstances to allow for a charge higher than that allowed under any applicable to XFS.In addition,XFS shall be similarly named as an additional insured on all public liability insurance policies. legal limit,is modified by this Section to limit the amounts chargeable under this Lease to the maximum amount The Required Insurance shall provide for 30 days'prior notice to XFS of cancellation. allowed under the legal limit.If,in any circumstances,any amount in excess of that allowed by law is charged YOU MUST PROVIDE XFS OR OUR DESIGNEES WITH SATISFACTORY WRITTEN EVIDENCE OF or received,any such charge will be deemed limited by the amount legally allowed and any amount received by REQUIRED INSURANCE WITHIN 30 DAYS OF THE INCEPTION DATE AND ANY SUBSEQUENT WRITTEN XFS in excess of that legally allowed will be applied by us to the payment of amounts legally owed under this REQUEST BY XFS OR OUR DESIGNEES.IF YOU DO NOT DO SO,THEN IN LIEU OF OTHER REMEDIES Lease or refunded to you. FOR DEFAULT,XFS IN OUR DISCRETION AND AT OUR SOLE OPTION MAY(BUT IS NOT REQUIRED TO) OBTAIN INSURANCE FROM AN INSURER OF XFS'S CHOOSING, WHICH MAY BE AN XFS AFFILIATE,IN SUCH FORMS AND AMOUNTS AS XFS DEEMS REASONABLE TO PROTECT XFS'S Cus=omer Initi_a Page 2 of 2 CPC-Final Rev.8.27.2014 I _ i 1 A PrintCare `°,-A. Cost Per Image Agreement �y`� ��1a�e��l.lrC� transforming business Managed Print Solutions 650 E Hospitality Lane,Suite 500 San Bernardino CA,92408 CUSTOMER INSTALL Agreement No. Full Legal Name DBA City of Palm Springs Address - City State ZIP Cad 3200 E Tahquitz Canyon Way Palm Springs CA b2262 CUSTOMER BILL TO Name same Address City State ZIP Code Phone Contact Name Contact Email Lessee PO#(Optional) 760-323-8206 Anthony Mejia anthony.mejia@palmspringsca.gov Monthly Base Maintenance Payment=$ 0 Excess Per Ima a Cha a stated In the below table r' a•� Xerox AltaUnk B8055(20) 0 .0049 WA WA Xerox AltaLink C8055(6) 0 .0049 0 .049 Xerox AltaUnk C8070(2) 0 .0049 0 049 Xerox VersaLink B505X(1) 0 .0190 WA N/A DEFINITIONS:The words Customer,You and Your refer to customer indicated above.The words Company,We,Us and Our to Image Source. SERVICES OFFERED:We agree to provide all consumables,along with device environment monitoring,auto toner replenishment,proactive service error monitoring,phone technical support,service,and quarterly environment reporting under this Cost Per Image Agreement.Further information on the Service Management details are stated on the back of this document.Covered equipment,along with Cast Per Image pricing,is listed in the table above,or separately in Schedule(s)A,and/or B. IMAGE CHARGES:Payments are due monthly,beginning the date the Agreement is initiated(as noted by the Agreement date below)or any later date designated by Us(see "Transitional Billing"section below)and continuing on the same day of each following month until fully paid.You are entitled to make thetotalnumberofimages reflected in the Monthly Image Allowance shown in the table above,or separately in Schedule(s)A,and/or B,each month(ifconsolidated),or the monthly amount Image Allowance Per Machine or Group(if not consolidated).If You use more than the applicable Allowance(s)in any month,You will pay Us an additional charge equal to the number of additional metered images multiplied by the applicable Excess Per Image Charge.If the meter reading required for periodic billing is not available,Company may bill for use based on an average volume for the most recent 3 months.You agree to comply with billing and meter collection procedures designated by Us,including notifying Us of the meter reading on the billing date.If meters are not received,We reserve the right to estimate Your usage for the billing period. TRANSITIONAL BILLING:If We designate as the Agreement commencement date or effective date a date which is later than the date the Agreement is/was initiated(asnotedbythe AgreementDatebelow),lhenYoushalpayUsaruntedmpaymentforeachday,fromthedatetheAgreementis/wasinhiatedunti@he commencement date,equal to the minimum monthly payment divided by 30.If this Cost Per Image Agreement has no minimum monthly amount(as designated in in the table above,or separately in Schedule(s)A,and/or B),We will bill You for actual pages copied or printed from the Agreement initiation date until the designated commencement date. GOVERNING LAW,CONSENT TO JURISDICTION AND VENUE OF LITIGATION:This Agreement and each addendum shall be governed by the laws of the State of California.You agree that any dispute arising tinder or related to this agreement will be adjudicated in the federal or state court located in San Bernardino.You hereby consent to personal jurisdiction and venue in that court and waive any right to transfer venue.Each party waives any right to a trial byjury. LATE FEES:The Customer will also pay collection costs and reasonable attorney's fees should the account be placed for collection. AGREEMENT PERIOD:This agreement is for a period of 60 months from the Agreement is initiated,and is non-cancelable.In addition to any other rights under this contract,Company may terminate this contract at any time by giving the Customer 30 day prior written notice.Unless notified in writing 30 days prior to the contract expiration date,this agreement shall renew for 12-monthperiods. cie THIS AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS PRINTED ON THIS PAGE,THE REVERSE SIDE,AND,IF APPLICABLE,ATTACHED SCHEDULE(S)A AND/OR B,ALL OF WHICH PERTAIN TO THIS AGREEMENT AND WHICH YOU ACKNOWLEDGE HAVING READ.THIS AGREEMENT IS NOT BINDING UNTIL ACCEPTED BY US.YOU CERTIFY ALL ACTIONS REQUIRED TO AUTHORIZE EXECUTION OF THIS AGREEMENT,INCLUDING YOUR AUTHORITY,HAVE BEEN FULFILLED. IMAGE SOURCE:(As Stated Above) d Above) By: Date Accepted: t8y`s � at / Signature -5i pature Print Name&Title: PtintN e`&Titll: Page 1 of 2 APMVM WIG", ",es//^ C��CIL v6.2019 i. 4 r cv� • • s 1ma eSource P r i n tC a r e r m I transfarmine business Managed Print Solutions 650 E Hospitality Lane,Suite500 AT San Bernardino,CA 92408 I. MAINTENANCE AND SUPPLIES. A. Cost Per Image Charges.The charges staled in the Agreement include charges for maintenance(from 8 a.m.to 5 p.m.local time,except weekends and holidays("Regular Service Hours"),inspection,adjustment,parts replacement,cleaning material required for proper operation,and loner and developer for such Equipment and may also include charges for such maintenance and supplies provided to You for the Equipment.Paper and staples are not included in this maintenance agreement.You must purchase staples separately,from Image Source.Color toner and developer supplies will be provided for production of pages,with an average 20%page coverage.Supplies required for production in excess of 20%page coverage will be invoiced separately. B. Equipment Eligible for Coverage.This only applies to the Equipment identified in the table on page one,or separately in Schedule(s)A,and/or B.You represent and warrant that, other than as set forth in the table on page one,or separately in Schedule(s)A,and/or B,there is no other equipment located at Your site(s)capable of using Our supplied toner and ink consumables.All Equipment capable of using Our supplied toner and ink consumables must be included in this Agreement.To the best of Your knowledge,there are no equipment conditions that do not meet manufacturer's specifications("Pre-Existing Conditions"),other than those specifically identified in the table on page one,or separately in Schedule(s)A and/ or B.You agree that We shall have the right to inspect and verify any Equipment covered by this Agreement which was previously owned by You.We reserve the right,at Our sole discretion,to exclude from this agreement any Equipment that We determine to have material faults,and/or to be unfit for service.If applicable,We may discount the Monthly Base Maintenance Payment by the amount reasonably allocated to any excluded Equipment. C. Definition of Services Provided.We agree(a)to perform only those repairs involving worn Equipment components that have failed during ordinary use of the Equipment under normal operating conditions(trays,covers and other non-consumable parts are not covered),and(b)to supply You with all toner and ink consumables required to operate the Equipment. Requests for services outside of Regular Service Hours will be provided on a best effort basis at Our prevailing time and material hourly rate.Such charges for services outside of Regular Service Hours are in addition to the prepaid Minimum Monthly Payment This Agreement does not cover after-hours service,shop overhauls,and service made necessary by accident,fire,water,natural disasters,or failure by You to meet the manufacturer's electrical requirements. D.Access to Equipment.We shall have the right to access Your site and any other of Your premises that may house Equipment upon reasonable notice for access with Your supervision during regular work hours.We reserve the right to invoice You at Our prevailing time and material hourly rate,separate from the Minimum Monthly Payment,when access to the Equipment is denied for greater than fifteen(15)minutes,when You initiated the request for service.We shall apply an estimated monthly page volume to any and all Equipment that cannot be accessed for page count recording purposes. E. Authorized Maintenance Providers.We,at Our discretion,may authorize Our approved maintenance subcontractors or approved service providers to perform maintenanceand repairs to the Equipment.In cases where We manage Your third party service agreement on Your behalf,then all sums currently due under that agreement must be paid in full before We will assume any obligation or responsibility. F. Repair Responsibility.Maintenance services excludes repairs due to:(a)misuse,neglect or abuse;(b)failure of the installation site or the PC or workstation used with the Equipment to comply with manufacturers published specifications;(c)use of options,accessories or products not serviced by Us;(d)non-Image Source alterations,relocation, service or supplies;or(a)failure to perform operator maintenance procedures identified in operator manuals,or(f)failure by You to meet the manufacturer's electrical requirements. G. Analyst Services.We agree to provide Analyst Services,at no additional charge,for the first 90 days of this Agreement.After 90 days,You agree to pay Us periodic charges for Analyst Services.We shall discontinue billing or debiting Analyst Services upon receipt of a written request to discontinue Analyst Services support for Equipment.Upon cancellation, You agree to bear the entire cost of Analyst Services related to the Equipment covered by this Agreement. H. Ownership and Control of Toner and Ink Consumables.All toner and ink consumables supplies provided under this Agreement shall at all times remain the property of Us.You may use the toner and ink consumables pursuant to the terms of this Agreement,but You shall not have any ownership rights in or to the toner or ink consumables.You shall not be charged for any toner or ink consumables in use upon the expiration of this Agreement.The ordering of consumables significantly in excess of the number of copies or prints produced may be charged to You by Us. L Additional Equipment and Right of Inspection.1.You shall notify Us promptly upon installing any additional equipment('Additional Equipment)at Your site capable of using Our supplied toner and ink consumables.Equipment installed subsequent to the date of this Agreement will be evaluated by Us,and included in,or excluded from,this Agreement at the sole discretion of Us.2.Additional Equipment deemed included in the Agreement by Us shall be added to this Agreement and will automatically be covered by and considered Equipment under the terms of this Agreement.Billings or surcharges for Additional Equipment output will be reflected in the billing cycle immediately following the billing cycle in which the Additional Equipment is installed.If You add Additional Equipment,the Minimum Monthly Payment may be adjusted accordingly,at Our sole discretion.3.If any such Additional Equipment is used equipment,You represent and warrant to Us that,except for Pre-Existing Conditions duly disclosed to Us prior to such Additional Equipment being covered by this Agreement,all of the Additional Equipment shall,on the date such coverage commences,be in good working order.We shall be entitled to take a physical inventory of the Additional Equipment,upon or prior to its being covered by this Agreement,to determine whether they are in working order.In the event,as of the date coverage commences under this Agreement,any Additional Equipment is not in goad working order,You shall have such Additional Equipment repaired at Your sole expense and,until such Additional Equipment is so repaired,any Additional Equipment with Pre-Existing Conditions shall not be covered under this Agreement.An initial meter reading of zero(0)is agreed,unless You provide timely information to the contrary,for any Additional Equipment that meets the conditions of I.I. II.WARRANTY.Notwithstanding anything in this Agreement to the contrary,We warrant(a)that all personnel performing services hereunder by or on behalf of Us will have appropriate training and experience and(b)all equipment is in accordance with industry standards,and all supplies and materials are of good quality.Without limiting the generality of the foregoing (and without limiting any obligation of Us to make repairs under this Agreement),You expressly agree and acknowledge that in no event shall any manufacturer's warranty,including but not limited to any implied warranty of merchantability,and fitness for a particular purpose,be deemed given by or otherwise transferred or applied to Us.It You notify Us within ninety (90)days from performance of the services that the services or a part thereof fails to conform to the standards specified herein,Your sole and exclusive remedy is that We shall promptly repair,replace,or re-perform the non-conforming services. III. MONITORING SOFTWARE. A.You grant Permission to Install and Maintain Software.We license software("Monitoring Software")that enables Us to monitor the usage of,and the copy count produced on,the Equipment.You agree that We shall have the right,at any time during the term of this Agreement,to install the Monitoring Software on one or more of Your computer networked station(s).You agree to provide Us,during normal business hours,access to Your computer-networked station(s)to enable Us to upgrade,modify or maintain the Monitoring Software or to install new releases or additions to the Monitoring Software.Under no circumstances will the Monitoring Software provide Us access to Your information other than information directly related to this Agreement.You agree to not delete or remove the Monitoring Software or to alter,modify or otherwise render it unusable during the term of this Agreement without the prior written consent of Us.If You disagree,then We retain the right to invoice You the prevailing hourly billable rate for labor required to obtain meter readings,per meter reading cycle. B. No License,other Prohibitions.Nothing herein shall be construed as granting a license to You for the use of the Monitoring Software.You may not,nor may You permit or cause any other person to(a)use or copy the Monitoring Software,in whole or in part,in any manner,(b)modify,translate,reverse engineer,decompile ordissemble the Monitoring Software,(c) rent,lease,loan,resell,distribute,use in a customer-server network to provide third parties access to,or otherwise transfer the Monitoring Software,or(d)remove any proprietary notices on the Monitoring Software. C. Intellectual Property Rights.All rights(including all intellectual property rights,whether recognized currently or in the future)in and to the Monitoring Software(including anysource code,executable code,object code,tools and/or libraries related to the Monitoring Software)will at all times be owned by Us.No modifications and/or use by You of the Monitoring Software shall under any circumstances transfer any right,title or interest in or to the Monitoring Software to You or any third party. D. Monitoring Software Warranty,Liability.You acknowledge that the Monitoring Software will be installed on Your networked workstation(s)"as is'without warranty of any kind,either express or implied,including the implied warranties of merchantability,fitness for a particular purpose and non-infringement.We do not warrant that the Monitoring Software will be error free or will operate without interruption.We shall in no event be liable to You or any third party for any special,consequential,incidental or indirect damages in connection with the Monitoring Software.If the software is found to cause issues on Your network,and these issues can be reasonably associated to the installation of the software through uniform software testing and tracing methodologies,Our liability will be limited to the removal of said Monitoring Software from Your environment. IV.MISCELLANEOUS. A.Software.Performance issues related to Software and/or connectivity are not covered under the terms of this Agreement.Any warranties related to Software will be those offered by the manufacturer and will be passed directly to the user. B.Software/Hardware.Connectivity and performance issues related to Software and non-standard hardware are not covered under the terms of this Agreement.Any warranties related to these solutions,which include but are not be limited to:Xerox ConnectKey Applications,PaperCut,XMedius Fax,Umango,Square9,Ysoft,Nuance,Formax,NeoPost,or Xerox FreeFlow,any computers and scanners,will be those offered by the manufacturer and passed directly to the user.Operation and configuration of the Software will be the responsibility of You after initial install and operation test is completed by Us. Customerelnifia Page 2 of 2 vs.zo.ls I Xerox. Financial Services LLC 201 Merritt 7 Xerox Norwalk, CT 06851J Addendum to Xerox Financial Services LLC Lease Agreement#020-0036746 The following sections replace or modify the corresponding sections in the Agreement and are hereby incorporated therein. In the event of any conflict between the terms of the Agreement and the terms below, the terms below shall control. Section 1.Definitions:Remove sentence which reads:Origination Fee"means a one-time fee of$125 billed on your first invoice which you agree to pay,covering the origination,documentation,processing and certain other initial costs for the Lease. Section 2.Lease,Payments and Late Payments.The following language is deleted. If any payment is not paid in full within 5 days after its due date,you will pay a late charge of the greater of 10%of the amount due or$25,not to exceed the maximum amount permitted by law. Section 8.Equipment Ownership,Labeling and UCC Filing.The following language is removed.You agree to pay any filing fees and administrative costs for the filing of such financing statements. Additional Section: Non-Appropriation.Your obligation to pay the Lease Payments and any other amounts due is contingent upon approval of the appropriation of funds by your governing body.In the event finds are not appropriated for any fiscal period equal to amounts due under the Lease,and you have no other funds legally available to be allocated to the payment of your obligations under this Lease,you may terminate the Lease effective on the first day of such fiscal period("Termination Date") if.(a)you have used due diligence to exhaust all funds legally available;and(b)XFS has received written notice from you at least 30 days before the Termination Date.At XFS's request,you shall promptly provide Supplemental documentation as to Such non-appropriation.Upon the occurrence of such non- appropriation,you shall not be obligated for payment of any Lease Payment for any fiscal period for which funds have not been so appropriated,and you shall promptly deliver the Equipment to the Dealer(or such other party as we may designate)as set forth in the return provisions of the Lease. Custome Lessor Acceptance: PALM_SPR_ S, CITY Or Xerox Financial Services M orized Signor: Accepted by: .IN Name: (Title: Title: Date: Date: Signor for the Lease Agreement and the Addendum,must be the same! APPROVED BY CrrY COUNCIL APPROVED AS TO FORM ST: Page 1 of 1 V7 Al 0 AnOM - aimageSourcetr ; en Image Source 650 E Hospitality Lane,Suite 500 Pri ntCare San Bernardino,CA 92408 Aefl, Managed Print Solutions Equipment Schedule A Lease Agreement Number EQUIPMENT Quantity Modet and Description 20 Xerox AltaLink B8055 6 Xerox AltaLink C8055 2 Xerox AltaLink C8070 1 Xerox VersaLink B605/X Authorize igner ` Date Print Name Title Equipment Scbedule Revised 11/18/16 Xerox Financial Services LLC xerox 45 Glover Avenue Cost Per Copy Agreement Norwalk, CT 06856 Lease Agreement M 0036746 Dealer Name: Image Source Full legal Name DBA City of Palm Springs Billing Address City State 20, code 3200 E. Tali uitz Canyon Palm Sarin s_ CA 92262 Phone Contact Name Contact Emall Lessee Poe tupooi,ali f -206 Anthonv Me'ia Anthonv.meiia@i)almsi)r*nglsc!a.xlov Cluantep Model and DescriIan duantlre I Model and Descripi . 20 Xerox Altal-ink 88055 1 Xerox VersaLink B605/X (BW Excess Charge @ .019) 6 Xerox AltaLink C8055 2 Xerox Altal-ink C8070 Equlpment local Ion (Ifdifferent from Billing Address) INCLUDEDINCLUDED B&W 0 .0049 Initial Lease Term (in months): 60 Color 0 .049 Annual Lease Payment: $ 107,224.07 Everyday Color N/A N/A Includes applicable taxes. Payment maybe Color Level 2 N/A N/A adjusted according to current tax rates. Color Level 3 N/A NIA BY YOUR SIGNATURE BELOW, YOU ACKNOWLEDGE THAT YOU ARE ENTERING INTO A NON -CANCELLABLE LEASE AND THAT YOU HAVE READ AND AGREED TO ALL APPLICABLE T NDLONOITIONS 5ET ON P ES 1 AND 2 OF THIS LEASE. —AWAMMUTIner DateOf Federal Tax ID a I Required) X 95-6000757 Print Name Title li irate Presld nt, Partner, Proprietor. etc) David H Read Cit Manager Accepted By. Xerox Financial Services LLC Name and Title e r T. uennmons. i ne wards you- and your mean me legal entity ioentmea in -Lessee imamatlon- above, and 'XFS; 'we; ' us lessor and 'our means Xerox Financial Services I.I.C. 'Party' means you or XFS, and 'Parties' means bath you and XFS.'Dealer means the entity identified in `Dealer Name' above.'Discount Rate` means a rate equal 10 the 1-year Treasury Constant Maturity rate as published in the Selected Interest Rates table of The Federal Reserve statistical release H.15(519) or successor publication for the week ending immediately prior to the Inception Date. 'Equipment' means the items identified in 'Equipment' above and in any attached Equipment schedule, plus any Software (as defined in Section 3 hereop, attachments, auessolies, replacements, replacement parts, substitutions, additLns and repairs thereto, 'Excess Charges' means the applicable excess copies andlor prints charges. -Inception Date' means (a) the data Dealer determines Equipment installed by Dealer is operating Satisfactorily and is available for your use, or (b) the date Equipment Identified by Dealer as being installable by you is delivered to your premises. 'LeaW means this Cost Per Copy Agreement including any attached Equipment schedule. lease Payment' means the Annual Lease Payment specified above whch includes the rued component of maintenance charges payable to Dealer under the Maintenance Agreement the Excess Charges (unless otherwise agreed by you, Dealer and XFS), and other charges you, Dealer and XFS agree will be invoiced in advance by XFS on an Annual bas s, plus Taxes. 'Maintenance Agreement' means a separate agreement between you and Dealer for maintenance and support purposes. 'Origination Fee' means a one-time fee of $125 billed on your rest invoke which you agree to pay covering the origination, documentalion, processing and certain other initial costs for the Lease. 'Tenn' means the Initial Lease Term plus any subsequent renewal or extension terms. 'UCC' means the Uniform Commercial Code of the State of Connecticut (C.G.SA. §§42a-1.101 at seq.). 2, Lease, Payments and Late Payments. You agree and represent all Equipment was selected, configured and negotiated by you based upon your own judgment and has been, or is being, suppled by Dealer. At your request XFS has acquired. or will acquire, the same to lease to you under this Lease and you agree to lease the same from XFS. The Initial Lease Term, which is indicated above, commences an the inception Dale. You agree to pay XFS the first Lease Payment 30 days alter the Inception Date, each subsequent Lease Payment, which may include charges you, Dealer and XFS agree will be invoiced by us, shall be payable on the same date annually thereafter, whether or not XFS invokes you N any payment Is not paid In full within 5 days after its due date, you will pay a late charge of the greater of 10% of the amount due or $25, not to exceed the maximum amount permitted by law. For each dishonored or returned payment, you win be assessed the applicable returned item fee, which shall not exceed $35. Restrictive covenants on any method of payment wil be ineffective. 3. Equipment and Software. To the extent that the Equipment includes intangible property or associated services such as software licenses. such intangible propertyshall be refereed to as'Sohware,' You acknowledge and agree that that XFS has no right, title or interest in the Software and you will comply throughout the Lease Term with any license andlor other agreement ( Schwa Licenser with the supplier of the Software ('Software Supplier'). You are responsible for entering into any required Software License with the Software Supplier no later than the Lease Inception Data. You agree the Equipment is for your lawful business use in the United Stabs (including its possessions and lenitoies), will not be used for personal, household or family purposes. and is not being acquired for resale. You will not attach the Equipment as a future to real estate or make any permanent alterations to it 4. Non -Cancellable Lease. THIS LEASE CANNOT BE CANCELLED OR TERMINATED BY YOU PRIOR TO THE END OF THE INMAL LEASE TERM. YOUR OBLIGATION TO MAKE ALL LEASE PAYMENTS, AND TO PAY ALL OTHER AMOUNTS DUE OR TO BECOME DUE IS ABSOLUTE AND UNCONDITIONAL AND NOT SUBJECT TO DELAY, REDUCTION, SET-OFF, DEFENSE, COUNTERCLAIM OR RECOUPMENT FOR ANY REASON WHATSOEVER, IRRESPECTIVE OF THE PERFORMANCE OF THE EQUIPMENT, DEALER, ANY THIRD PARTY OR XFS. Any pursued clam by you aga' -si XFS for alleged breach of our obligations hereunder shah be asserted solely in a separate action provided, however, that your obligations under this Lease shelf continue unabated. 5. End of Lease Options. If you are not in default and if you provide no greater than 150 days and no less than 60 days' prior written notice to XFS, you may, at the end of the Inital Lease Term. either (a) purchase all, but not less than all, of the Equipment'AS IS, WHERE IS' and WITHOUT ANY WARRANTY AS TO CONDITION OR VALUE at the time of purchase by paying its fair market value, as delermeted by XFS in its sale but reasonable discretion, plus Taxes, (b) enter into a new lease on mutually agreeable terms or (c) de -install and return the Equipment, at your expense, fully insured, th a continental US location XFS specifies. If you have not elected one of the above options, you shag be deemed to have entered into a new lease with a 3 month term on terns and conditions identical to this Lease, except that either party may terminate the new lease at the end of its 3 month term on 30 days' prior written notice and, when this new lease terminates, shag take one of the actions identified in (a) (b) or (c) in the preceding sentence or be deemed to have entered into another new lease with a 3 month term as provided herein. Any purchase option shall be exercised with respect to each item of Equipment on the day immediately following the dale of expiration of the Lease Term of such hem, and by the delivery at such time by you to XFS of payment in cash or by certified check, of the amount of the applicable purchase price for the Equipment Upon payment of the applicable amount, XFS shall, upon your request. execute and deliver to you a bill of sale for the Equipment an an 'AS IS,' WHERE IS; 'WITH ALL FAULTS basis, without representation or warranty of any kind or nature whatsoever. After such payment, you may trade, in the Equipment as pan of another transaction with XFS and, if you do, you must pass unencumbered title of the Equipment being traded•in to XFS 6. Equipment Return. If the Equipment is rehirned to XFS, it shag be in the same condition as when delivered to you, normalwear and fear accepted and, if not in such condition, you will be liable for all expenses XFS incurs to return the Equipment to such'nermal wear and lear condition. IT IS SOLELY YOUR RESPONSIBILITY TO SECURE ANY SENSITIVE DATA AND PERMANENTLY DELETE SUCH DATA FROM THE INTERNAL MEDIA STORAGE PRIOR TO RETURNING THE EQUIPMENT TO XFS. YOU SHALL HOLD XFS HARMLESS FROM YOUR FAILURE TO SECURE AND PERMANENTLY DELETE ALL SUCH LESSEE DATA AS OUTLINED IN THIS SECTION. 7. Meter Readings and Annual Adjustments. Unless otherwise agreed byyou andXFS you wig povidemeter readings on all Equipment subject to this Lease at the end of each month diving the initial Lease Term and any additional Tenn. If you do not provide a timely meter reading, XFS may estimate such reading and invoice you acxordingly. If XFS does estimme any meter readings, XFS will make appropriate adjustments on subsequent invoices to you attar receiving the actual meter readings tom you for the Equipment At any time after 12 months from the Inception Date and for each successive 12 month period thereafter during the Initial Lease Term and any 3 month extended Tema, XrS may increase your Annual Lease Payment and the Excess Charges by a maximum of fifteen percent If 5%) of the thencurent Annual Lease Payment therefor and you agree to pay such increased amounts. 11. Equipment Delivery and Malritenartim Equipment will be delivered loyou by Dealer at thelocation specified on the first page hereof or in an Equipment schedule, and you agree to execute a Delivery & Acceptance Certificate at XFS's request {and confirm same via telephone andlor electronically) confirming that you have received, inspected and accepted the Equipment, and that XFS is authorized to fund the Dealer for the Equipment If you reject the Equipment, you assume all responsibility for any purchase order or other contract issued on your behalf directly with Dealer. Equipment may riot be moved to another location without first obtaining XFS's written consent which shag not be unreasonably withheld. You shall permit XFS to inspect Equipment and any maintenance records relating thereto during your normal business hours upon reasonable notice You represent you have entered into a Maintenance Agreement with Dealer to maintain the Equipment in good working order in accordance with the manufacturer's mainenance guidelines, and le provide you with supplies for use with the Equipment You understand and acknowledge that XFS is acting solely as an administrator for Dealer with respect le the billing and collecting of the charges under the Maintenance Agreement and Excess Charges included in the Lease Payments. IN NO EVENT WILL XFS BE LIABLE TO YOU FOR ANY BREACH BY THE DEALER OF ANY OF ITS OBLIGATIONS TO YOU NOR W'LL ANY OF Page '1 of 2 CPC - Final Rev. 8.27.2014 YOLR OBLIGATIONS UNDER T-dS LEASE BE AFFECTED, MODIFIED, RELEASED OR EXCU_ED BY ANY ALLEGED BREACH BY DEA_ER. 9. Equipment Ownership, Labeling and UCC Filing, If and to the extent a court deems this Lease to be a security agreement underthe UCC, and otherwise for precautionary purposes only, you granlXFS a first priority security interest in your interest in the Equipment and all proceeds thereof in order to secure your performance under this Lease. XFS is and shall remain the sole owner of the Equipment, except the Software. XFS may label the Equipment to identiy our ownership interest in iL You authorize XFS to file by any permissible means a UCC financing statement to slaw, and to do all other acts to protect, our interest in the Equipment You agree to pay any fifing fees and administrative costs for the filing of such financing statements. You agree to keep the Equipment free from any liens or encumbrances and to promptly notify XFS if there is any change in your organization such that a railing or amendment to XFS's UCC financing statement against you becomes necessary, 10. Assignment. YOU MAY NOT ASSIGN, SELL, PLEDGE, TRANSFER, SUBLEASE OR PART WITH POSSESSION OF THE EQUIPMENT, THIS LEASE OR ANY OF YOUR RIGHTS OR OBLIGATIONS UNDER THIS LEASE (COLLECTIVELY 'ASSIGNMENT) WITHOUT XFS'S PRIOR WRITTEN CONSENT. WHICH SHALL NOT BE UNREASONABLY WITHHELD, BUT SUBJECT TO THE SOLE EXERCISE OF XFS'S REASONABLE CREDIT DISCRETION AND EXECUTION OF ANY NECESSARY ASSIGNMENT DOCUMENTATION. If XFS agrees to an Assignment you agree to pay the applicable assignment ice and rermbu se XFS for any costs we incur in connection with that Assignment XFS may sell. assign or transfer all or any part of the Equipment this Lease andlor any of our rights (but none of our obligations) under this lease. XFS's assignee Wit have the same rights that we have to the extent assigned (but none of our ob igations) and YOU AGREE NOT TO ASSERT AGAINST SUCH ASSIGNEE ANY CLAIMS, DEFENSES, COUNTERCLAIMS, RECOUPMENTS, OR SET -OFFS THAT YOU MAY HAVE AGAINST XFS. XFS agrees and acknowledges that any Assignment by us Wit rat materially change your obligations under this Lease. 11. Taxes. You will be responsible for, indemnify and hold XFS harmless from, all applicable taxes. fees or charges (including sales, use, personal properly and transfer taxes, other than net Income taxes), plus interest and penalties, assessed by any governmental entiy on the Equipment this Lease or the amounts payable under this Lease (collectively, 'Taxes}, which wig be included in XFS's invoice to you unless you limey provide continuing proof of your tax exempt status. 11 Equipment is delivered to a jurisdiction where certain taxes are calculated and paid at the We of lease initiation, you authorize XFS to finance and adjustyour Lease Payment to include such Taxes ever the Initial Lease Term unless you require otherwise. Unless and unfit XFS notifies you in writing to the contrary, XFS will fife all personal papery tax returns covering the Equipment pay the personal property taxes levied or assessed thereon, and collect from your account all personal property taxes on the Equipment This is a true lease for all intone tax purposes andyou will nolclaim any creditor deduction for depreciation at the Equipment, or take any other action inconsistent With your status as lessee of the Equipment 12. Equipment Warranty Information and Disclaimers. XFS IS MERELY A FINANCIAL INTERMEDIARY, AND HAS NO INVOLVEMENT IN THE SALE, DESIGN, MANUFACTURE, CONFIGURATION, DELIVERY, INSTALLATION, USE OR MAINTENANCE OF THE EQUIPMENT. THEREFORE, WITH RESPECT TO EQUIPMENT, XFS DISCLAIMS, AND YOU WANE SOLELY AGAINST XFS, ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, NOWNFRINGEMENT AND FITNESS FOR PARTICULAR PURPOSE, AND XFS MAKES NO REPRESENTATIONS OF ANY KIND OR TYPE, INCLUDING, BUT NOT LIMITED TO, THE EQUIPMENT'S SUITABILITY, FUNCTIONALITY, DURABILITY, OR CONDITION. Since you have selected the Equipment and the Dealer, you acknowledge that you are aware of the name of the manufacturer of each item of Equipment and agree that you will contact each manufacturer andlor Dealer for a description of any warranty rights you may have under the Equipment supply contract sales order, or otherwise. Provided you are not in default hereunder, XFS hereby assigns to you any warranty rights we may have against Deafer or manufacturer with respect to the Equipment If the Equipment is returned to XFS, such rights are deemed reassigned by you to XFS. IF THE EQUIPMENT 15 NOT PROPERLY INSTALLED, DOES NOT OPERATE AS WARRANTED, BECOMES OBSOLETE, OR IS UNSATISFACTORY FOR ANY REASON WHATSOEVER, YOU SHALL MAKE ALL RELATED CLAIMS SOLELY AGAINST MANUFACTURER OR DEALER AND NOT AGAINST XFS, AND YOU SHALL NEVERTHELESS CONTINUE TO PAY ALL LEASE PAYMENTS AND OTHER SUMS PAYABLE UNDER THIS LEASE 13. Liability and Indemnification. XFS IS NOT RESPONSIBLE FOR ANY LOSSES, DAMAGES, EXPENSES OR INJURIES OF ANY KIND OR TYPE, INCLUDING, BUT NOT LIMITED 70, ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (COLLECTIVELY, "CLAIMS"1, TO YOU OR ANY THIRD PARTY CAUSED BY THE EQUIPMENT OR ITS USE, EXCEPT THOSE CLAIMS ARISING DIRECTLY AND PROXIMATELY FROM XFS'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. In addition. except for Claims arising directly and proximately from XFS's gross negligence or willful misconduct you assume the nsk of gabibly for, and hereby agree to indemnify and hold safe and harmless. and covenant to defend, XFS its employees, officers and agents tram and against: ;a) any and all Claims (including legal expenses of every kind and nature; arising eul of the manufacture, purchase, shipment and delivery of the Equipment to you acceptance or re'ecbon, ownership, leasing, possesson, operation. use, return or other disposition of the Equipment, including, without limitation, any liabilities that may arise from patent Or latent defects in the Equipment (whether or rcl discoverable by you;, any claims based on absolute tort liability or warranty and any claims based on patent trademark or copyright infringement and (bl any and all loss or damage of or to the Equipment 14, Default and Remedies. You will be in default under this Lease if (1) XFS does not receive any payment within 10 days after its due date or (21 you breach any other obligation under this Lease or any other agreement with XFS. 11 you default, and such default continues for 10 days after XFS provides noti=e to you, XFS may, in addition to other remedies 1 ncluding requesting the Dealer to cease performing under the Maintenance Agreement). require you to promptly return the Equipment as prow ded in Sections 5 and 6 hereof, and require immediate payment. as - quidated damages for loss of bargain and not as a penalty, of the slam of: (a) all amounts then due, plus interest from the due date until paid at the rate of 1.$1. per month: (b) the Lease Payments remaining in t',e Initial Lease Term ;including the fixed maintenance component thereof. it permitted under the Maintenance Agreement), discounted at the Discount Rate to the date of default. and (c) Taxes, In addition, if you do not return the Equ:pmenl as required above, you agree to pay XFS the fair market value therect, as reasonably deter lined by XFS, as of the end of the Initial Lease Term, discounted at the Discount Ralo to the date of default You agree to pay all reasonable costs, including anomeys' fees and disbursements, incurred by XFS to enforce this Lease. 15. Rlsk of Loss and Insurance. You assume and agree to bear the entire risk of loss theft destruction or other impairment of the Equipment upon delivery. You, at your own expense, () shall keep Equipment insured against lass or damage at a m nimum of fug replacement value thereof, and (i) shall tarty public liability insurance against bodiy njury including death, and against property damage in the amountof at least $2 million (colectively, 'Required Insurancel. All such Required Insurance shall be with loss payable to 'XFS. its successors and/or assigns, as their interests may appear; and shall be with companies reasonably acceptable to XFS. In addition, XFS shall besimilary named as an additional insured on all public liability insurance polices. The Required Insurance shall provide for 30 days' pia notice to XFS of cancellation. YOU MUST PROVIDE XFS OR OLR DESIGNEES WITH SATISFACTORY WRITTEN EVIDENCE OF REQUIRED INSURANCE WITHIN 30 DAYS OF THE INCEPTION DATE AND ANY SUBSEQUENT WRITTEN REQUEST BY XFS OR OUR DESIGNEES, IF YOU DO NOT DO SO, THEN IN LIEU OF OTHER REMEDIES FOR DEFAULT, XFS IN OUR DISCRETION AND AT OUR SOLE OPTION MAY (BUT IS NOT REQUIRED TO) OBTAIN INSURANCE FROM AN INSURER OF XFS'S CHOOSING, WHICH MAY BE AN XFS AFFILIATE, IN SUCH FORMS AND AMOUNTS AS XFS DEEMS REASONABLE TO PROTECT XFS'S Cu0omer 1rhal INTERESTS (COLLECTIVELY "EQUIPMENT INSURANCE"). EQUIPMENT INSURANCE WILL COVER THE EQUIPMENT AND XFS: IT WILL NOT NAME YOU AS AN INSURED AND MAY NOT COVER ALL OF YOUR INTEREST IN THE EQUIPMENT AND WILL BE SUBJECT TO CANCELLATION AT ANY TIME. YOU AGREE TO PAY XFS PERIODIC CHARGES FOR EQUIPMENT INSURANCE (COLLECTIVELY "INSURANCE CHARGES") THAT INCLUDE: AN INSURANCE PREMIUM THAT MAY BE HIGHER THAN IF YOU MAINTAINED THE REQUIRED INSURANCE SEPARATELY; A FINANCE CHARGE OF UP TO 1.5% PER MONTH ON ANY ADVANCES MADE BY XFS OR OUR AGENTS; AND COMMISSIONS, BILLING AND PROCESSING FEES: ANY OR ALL OF WHICH MAY GENERATE A PROFIT TO XFS OR OUR AGENTS. XFS MAY ADD INSURANCE CHARGES TO EACH LEASE PAYMENT. XFS shall discontinue billing or debiting Insurance Charges for Equipment Insurance upon receipt and review of satisfactory evidence of Required Insurance. You must promptly notify XFS of any loss or damage to Equipment which makes any item of Equipment unfit for continued or repairable use. You hereby irrevocably appoint XFS as your att0mey4n-fact to execute and endorse all checks or drafts in yournams to collect under any such Required Insurance. Insurance proceeds from Required Insurance or Equipment Insurance received shall be applied, at XFS's option, to (x) restore the Equipment so that it is in the same condition as when delivered to you (normal wear and tear excepted), or (y) if the Equipment is not restorable, to replace it with like -kind condition Equipment from the same manufacturer. or (z) pay to XFS the greater of (i) the total unpaid Lease Payments fa the entire term hereof (discounted to present value at the Discount Rate) plus XFS's residual interest in such Equipment (herein agreed to be 20%of the Equipment's original cast to XFS, discounted to present value at the Discount Rate) plus any other amounts due to us tinder this Lease, a ;ii) the fairmarket value of the Equipment immediately prior to the loss or damage, as determined by XFS. NO LOSS OR DAMAGE TO EQUIPMENT, OR XFS'S RECEIPT OF INSURANCE PROCEEDS, SHALL RELIEVE YOU OF ANY OF YOUR REMAINING OBLIGATIONS UNDER THIS LEASE. Notwithstanding procurement of Equipment Insurance or Required Insurance, you remain primarily liable for performance under subc,auses (x), (y) or (z) in the third sentence of this paragraph In the event the applicable insurance carrier fails or refuses to pay any claim. YOU AGREE (I) TO ARBITRATE ANY DISPUTE WITH XFS, OUR AGENTS OR ASSIGNS REGARDING THE EQUIPMENT INSURANCE ANDIOR INSURANCE CHARGES UNDER THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION IN FAIRFIELD COUNTY, CT, (II) THAT ARBITRATION (NOT A COURT) SHALL BE THE EXCLUSIVE REMEDY FOR SUCH DISPUTES; AND (IU)THAT CLASS ARBITRATION IS NOT PERMITTED. This arbitration requirement does not apply to any other provision of this Lease. 16. Finance Lease and Lessen Waivers. The parties agree this Lease Is a "finance lease" under UCC Article 2A. You waive, solely against XFS and its successors and assigns. (a) all rights and remedies conferred on a lessee under Article 2A (Sections 504.522) of the UCC (C.G.S.A. §142a•2A•724-737), and (b) any rights you now or lalermay have which require XFS to sell, leaseor otherwise use any Equipment to reduce our damages including our realization of the remaining value of the Equipment, or which may otherwise limit or modify any of our rights or remedies. 17. Authorizatlon of Signer and Credit Review. You represent that you may lawfully enter into, and perform, this Lease, that this indiv dual signing this Lease on your behalf has all necessary authority to do so, and that a0 financial nlormaboa you provide completely and accurately represents your financial condition. You agree to furnish financial information that XFS may request now, including your tax klentificalion number, and you authorize XFS to obtain credit reports on you in the NW should you default or fail to make prompt payments under this Lease. 10. Original and Sole Controlling Document; No Modifications Unless in Writing. This Lease constitutes the entire agreement between the Parties as 10 the subjects addressed herein, and representations or statements not included herein are not part of this Lease and are not binding on the Parties. You agree that an executed copy of th:s Lease that is signed by your authorized representative and by XFS's autlarized representative (an original manual signature or such signature reproduced by means of a reliable electronic form, such as electronic transmission of a facsimile or electronic signature) shag be mmlied'ofiginal' by XFS and shall constitute the only original documenlfar all purposes. Aliothercopies shag be duplicates. To the extent this Lease constitutes chattel paper (as defined in the UCC), no security interest in this Lease may be created except by the possession or transfer of the copy marked 'original' by XFS. IF A PURCHASE ORDER OR OTHER DOCUMENT IS ISSUED BY YOU, NONE OF ITS TERMS AND CONDITIONS SHALL HAVE ANY FORCE OR EFFECT, AS THE TERMS AND CONDITIONS OF THIS LEASE EXCLUSIVELY G2VERN THE TRANSACTION DOCUMENTED HEREIN. THE DEALER AND ITS REPRESENTATIVES ARE NOT OUR AGENTS AND ARE NOT AUTHORIZED TO MODIFY OR NEGOTIATE THE TERMS OF THIS LEASE THIS LEASE MAY NOT BE AMENDED OR SUPPLEMENTED EXCEPT IN A WRITTEN AGREEMENT SIGNED BY AUTHORIZED REPRESENTATIVES OF THE PARTIES AND NO PROVISIONS CAN BE WAIVED EXCEPT IN A WRITING SIGNED BY XFS. XFS's failure to object to terms contained in any communication from you will not be a waiver or modification of the terms of this Lease. You authorize XFS 10 insert or correct missing nformation on this Lease including but not limited to your proper legal name lease numbers. senal numbers and other information describing the Equipment so long as there is no malenal impact to your financial obligations. 19. Govemlrig Lary, Jurisdiction, Venue and JURY TRIAL WAIVER. THIS LEASE IS G"VERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CONNECTICUT (WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD OTHERWISE REQUIRE APPLICATION OF LAWS OF ANOTHER JUR SDICTION), THE JURISDICTION AND VENUE OF ANY ACTION TO ENFORCE THIS LEASE, OR OTHERWISE RELATING TO TH;S LEASE, SHALL BE IN A FEDERAL OR STATE COURT IN FAIRFIELD COUNTY, CONNECTICLT OR. EXCLUSIVELY AT XFS'S OPTION, IN ANY OTHER FEDERAL OR STATE COURT WHERE THE EQUIPMENT IS LOCATED OR WHERE XFS'S OR YOUR PRINCIPAL PLACES OF BUSINESS ARE LOCATED AND YOU HEREBY WAIVE ANY RIGHT TO TRANSFER VENUE. THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION RELATED TO OR ARISING OUT OF THIS LEASE. 20. Miscellaneous. Your obligations under the 'Taxes- and tiablity' Sections commence upon execution, and survive the expiration or ear ter termination, of this Lease. Notices under this Lease must be in wetting. Notices to you will be sent to the'B Ding Address' provided on the fast page hereof, and notices to XFS shall be sent to our address provided on the first page hereof. Notices will be deemed given 5 days after mailing by lust class mad or 2 days after sending by nationally recognized overnight tour er Invoices are not considered notices and are not governed by the notice terms hereof. You authorize XFS to communicate with you by airy electronic means (including cellular phone, email, automatic dialing and recorded messages) using any phone number (including cellular) or electronic address you prov de to us. I a court finds any term of 1h s Lease unenforceable. the remaining terms will remain in effect, The failure by either Party to exercise any right or remedy will not constitute a warner of such right or remedy. If more than one party has signed this Lease as lessee each such Party agrees that its liability is joint and several. The following four sentences control over every other part of this Lease. Both Parties will comply with applicable laws. XFS will not charge or collect any amounts in excess of those allowed by applicable law. Any part of this Lease that would, but for the last four sentences of th s Section, be read under any circumstances to allow for a charge higher than that allowed under any applicable legal limit, is modified by this Section to limit the amounts chargeable under This Lease to the maximum amount allowed under the legal limit If, in any circumstances. any amount in excess of that allowed by law is charged orreceived. any such charge wilt be deemed limited by the amount legally allowed and any amount received by XFS in excess of that legally allowed will be applied by us to the payment of amaunts'sgaly owed under this Lease or refunded to you. Page 2 of 2 CPC - =iria Rev 0 27,2014 y�PrintCare Managed Print Solutions Cost Per Image Agreement image5ource tramformltryt buaineaa 550 E Howtaw y lane, Sure so0 CUSTOMER INSTALL Agreement No. can wrttarerrq t.rt. 9iNi Full Lapel Name City of Palm Springs DB,A AdftiN 3200 E Tahquitz Canyon Way Palm Springs Stat°CA ZIP `a k262 CUSTOMER BILL TO Name same Address City State ZIP Code Phone 760-323-8206 Camact Nem"AnthonY 1 Me'ia Cease Emaa anthon .me la Y 1 �Palmspdngsca.gov Lessee PON (Optional) MoWsly Base Maintenance Payment • S Esau Per Cho zu"s in the t ,&— Xarm ANUrik I1ea56 Cq 0 ,0049 WA WA Xem AMU* C30S5 (e) 0 Aug 0 pap Xwm AULk* CIKIM Z) a .0046 0 .049 ' Xwmr versaLink 8605%(1) a .0100 WA WA DEFINITIONS- The words Customer. You and Your refer to customer Indicated above. The words Company, We, Us and Our to Image Source. SERVICES OFFERED! We agree to provide all consumables, along with device environment monitoring, auto toner replenishment, proactWe service error monitodng, phone technical support, service, and quarterly environment reporting under this Cost Per Image Agreement, Further information on the Service Management details are stated on the back of this document. Covered equipment, along with Cost Per Image pricing, Is listed In the table above, or separately In Schedules) A. andlor S. IMAGE CHARGES, Payments are due monthly, beginning the date the Agreement is Initiated (as noted by the Agreement date below) or any later date designated by Us (sae -Transitional BMW section below) and continuing on the same day of each following month until hilly paid, You are entitled to make thetotalnumberollmages reRected in the Monthly tmageAllowance shown in the table above, or separately In Schedule(s) A, andlor B, each month (Ifconsdkfated), orthee monthlyamount Image Allowance Per Machine or Group (if not consolidated). If You use more than the applicable Allowance(s) In any month, You will pay Us an additional charge equal to the number of additional metered images multiplied by the applicable Excess Per Image Charge. If the meter reading required for periodic billing Is not available, Company may bill for use based on an average volume for the most recent 3 months. You agree to comply with billing and matercolection procedures designated by Us. including notifying Us of the meterreading on the billing date. If meters are not received, We reserve the right to estimate Your usage for the billing period. TRANSITIONAL BILLING: If We designate as the Agreeme-d commencement date or effective date a date which Is later than the date the Agreement Wwas Initiated (asnotedbylhe AgreementDatabelow),thenYoushalpayUsari^tedmpaymentlz,reachday mrrthedalethaAgmrr*nbslwrsEnbtiatedtmtlthe carsnencement date, equal to the minimum monthly payment divided by 30. If th s Cost Per Image Agreement has no minimum monthly amount (as designated In In the table above, or separately In Schedules) A, andlor 5), We wig big You for actual pages copied or printed from the Agreement initiatlon date until the designated commencement date. GOVERNING LAW. CONSENT TO JURISDICTION AND VENUE OF LITIGATION- This Agreement and each addendum shall be governed by the laws of the State of Callforrda. You agree that any dispute ariaing under or related to this agreement will be adjudicated In the federal or state court located In San Bernardino. You hereby consent to personal jurisdiction and venue In that court and waive any right to transfer venue Each party waives any right to a trial by jury. LATE FEES The Customer will also pay collection costs and reasonable attorney's fees should the acmtlnt be placed for collection. AGREEMENT PERIOD: This agreement Is for a period of 60 months from the Agreement Is initiated, and Is non -cancelable. In addition to any other rights under this contract. Company may terminals this contract at any time by giving the Customer 30 day prior written notice Unless notified in writing 30 days prior to the contract expiration date, this agreement shall ten" for 92-monthperlods. THIS AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS PRINTED ON THIS PAGE THE REVERSE SIDE, AND, F APPucABLE, ATTACHED SCHEDULE(S) A ANDIOR B ALL OF WHICH PERTAIN TO THIS AGREEMENT AND WHICH YOU ACKNOWLEDGE HAVING READ, THIS AGREEMENT IS NOT BINDING UNTIL ACCEPTED BY US. YOU CERTIFY ALL ACTIONS REQUIRED TO AUTHORIZE EXECUTION OFTHIS AGREEMENT. INCLUDING YOUR AUTHORITY, HAVE BEEN FULFILLED. _ IMME SOURCE: tAs Stated Abwo) OareA[cepted. or. Atoms) ]rsnasure VIrnature Print Na iTtd 7 nee e. PrMt Neme s 71t1c ✓fi` r Page 4 of 2 APE"PAMOYCWCOUNIM y =t� rintCare' imageSiorce Managed Print Solutions eso E Hospitality Lane. Suite5W San Bernardino, CA 9240E 1. MAINTENANCE AND SUPPLIES, A. Cost Per Image Charges. The charges stated a the Agreement include charges far maintenance (from B a.m. to 5 p.m. but time, except weekends and holidays ('Regular Service Hours"), Inspection, adjustment, parts replacement, cleaning material required for proper operation, and toner and developer for such Equipment and may also Include charges far such maintenance and supplies provided to You for the Equipment Paper and staples are not included in this maintenance agreement. You must purchase stapies separately, from image Source Color toner and developer supplies will be provided for production of pages, with an average 20% page coverage. Supplies required for production In excess of 20% page coverage will be Invoiced separately. B. Equipment EItgliate for Coverage. This only applies to the Equipment identified in the table on page one, or separately In Schedule(&) A. andfor B. You represent and warrant trial, other than as set forth in the table on page one. or separately in Schedules) A, and/or B. there is no other equipment located at Your she(&) capable of using Our supplied toner and ink consumables All Equipment capable of using Our supplied toner and ink consurnables must be included In this Agreement To the best of Yaw knowledge, there are no equipment conditions that do toll moot manufacturers specs lca9ans ('Pre-Exlsting Condlllonf"), other than those specifically identified In the table an page one, or separately In Schad or B. You agree that We shall have the right to Inspect and verity any Equipment covered by this Agreement which was previously owned by You, We reserve the right, at Ourr sand/ sole discretion to exclude from this agreement any Equipment that We determine to have material faults, and/or to be unfN for service. If applicable, We may discount the Monthly Base Maintenance Payment by the amount reasonably allocated to any excluded Equipment. C Definition of Services Provided We agree (a) to perform only those repairs Involving worn Equipment components that have failed during ordinary use of the Equipment under normal operating conditions (trays, coven and other nonconsumable parts are not covered), and (b) to supply You with all toner and Ink consumabfea required to operate the Equipment. Requests for services outside of Regular Service Hours will be provided on a best effort basis at Our preva,ling time and material hourly rate, Such charges for services outside of Regular Service ►!aura are in addition to the prepaid Minimum Monthly Payment This Agreement does not cover enter -hours service shop overhauls, and service made necessary by accident fire, water, natural disasters. or failure by You to meet the manufacturers ekc. l requirements. D. Access to Equipment. We shall have the right to access Your site and any other of Your premises that may house Equipment upon reasonable notice for sccess with Your supervision during regular work hours We reserve the right 10 Invoice You at Our prevailing time and material hourly role, separate from the Minimum Monthly Payment, when access to the Equipment Is denied for greater than fifteen (15) rmnutea, when You Initiated the request for service We shall apply an estimated monthly page volume to any and all Equipment that ramat be accessed for page count recording purposes. F Authorised MalriMnance Providers. We. at Our discretion, may authorize Our approved maintenance subcontractors or approved service providers to perform maintenance and repairs to the Equipment. In eases where We manage Your third parry server agreement on Your behatl, then all sums currently due under that agreement must be paid in full before We will assume any obligation or responsibility F Repair Responsibility. Maintenance services excludes repairs due to: (a) misuse. negtect or abuse, (b) lai'uro of the installation site or the PC or workstation used with the Equipmenl to comply with manufacturer's published specifications, (c) use of options. accessories or products not servked by Us. (d) nandmage Source alterations, relocation, service or supplies. or (a) failure to perform operator maintenance procedures identified In operator manuals, or (I) failure by You to meet the manufacturers electrical requirements C. Analyst Services. We agree to provide Analyst Services, at no additional charge, for she first 90 days of this Agreement After 90 days, You agree to pay Us periodic charges lac Analyst Services We Shall discontinue Willing or debiting Analyst Services upon receipt of a written request to discontinue Analyst Services support for Equipment. Upon cancellation You agree to bear the entire coat of Analyst Services related to the Equipment covered by this Agreement H Ownership and Control of Toner and Ink Consumabtes. A11 toner and ink consumables supplies provided under this Agreement shallat all times remain the property of Us. You may use the toner and ink consurmables pursuant to the terms of this Agreement, but You shall not have any ownership rights in or to the toner or ink con iumables. You shall not be charged for any toner or ink consumabfes In use upon the expiration of this Agreement. The ordering of consumables significantly In excess of the number of copies or prints produced may be charged to You by Us. I Additional Equipment and Right of Inspection. 1. You shall notify Us promptly upon Installing any additional equipment ('Additional Equipment) at Your site capable of using Our supplied toner and Ink eonsumabses. Equipment Installed subsequent to the date of this Agreement will be evaluated by Us, and included in, or excluded from, this Agreement at the We discretion of Us 2 Additional Equipment deemed Included In the Agreement by Us shall be added to this Agreement and will automatically be covered by and considered Equipment under the tenor of this Agreement Blikngs or surcharges for Additional Equipment output will be reflected in Me billing cycle Immediately following the billing cycle in which the Additional Equipment is installed. If You add Additional Equipment, the Minimum Mon" Payment may be adjusted aeeordingly at Our sole discretion, 3. If any such Additional Equipment Is used equipment, You represent and warrant to Us that, except for Pre -Existing Conditions duly disclosed to Us prior to such Additional Equipment being covered by this Agreement all of the Additional Equipment shall, on the date such coverage commences, be in good working order We shall be entitled to We a physical Inventory of the Additional Equipment, upon or prior to its being covered by this Agreement, to determine whether they are in working order In the event, as of the date coverage commences under this Agreement any Additions Equipment Is not in good working order, You shall have such Additional Equipment repaired at Your sole expense and, until such Additional Equipment Is so repaired any Additional Equipment with Pre -Existing Conditions shaft not be covered under this Agreement An initial meter reading of zero (0) is agreed, unless You provide bmefy information to the contrary, for any Additional Equipment that meets the conditions all. I IL WARRANTY Notwithstanding anything in this Agreement to the contrary, We warrant (a) flat al! personnel performing services hereunder by or on behalf of Us will have appropriate training and experience and (b) all equipment Is In accordance with industry standards, and all supplies and materials are of good qualify Without limiting the generality of the foregoing (and without : ribng any obligation of Us to make repairs under this Agreement), You expressly agree and acknowledge that in no event shall any manurractumem warranty. Including but net frosted to any Implied warranty of merchantability, and fitness for a particular purpose, be deemed given by or otherwise transferred or applied to Us. If You notify Us within ninety (90) days from performance of the services that the sery ces or a par thereof fads to conform to the standards specified heroin. Your We and exclusive remedy is that We shall promptly repair, replace, or re -perform the non -conforming services, Ill. MONITORING„§QF'TWARE. A. You grant Permission to Install and Maintain Software. We license software ('Monitoring Software') that enables Us to monitor the usage of, end 1fo copy count produced on, the Equipment You agree that We shall have the right, at any time during the term of this Agreement. to Install the Monitoring Software on one or more of Your computer networked stations) You agree to provide Us, during normal business hours. access to Your computer -networked station(s) to enable Us to upgrade, modify or maintain the Monitoring Software at to Install new releases or additions to the Monitoring Software. Under no circumstances will the Monitoring Software provide Us access to Your Information other than Information directly related to this Agreement. You agree to not delete or remove the Morbtor ng Software or to alter, modify or otherwise render it unusable during the term of this Agreement without the prior written consent of Us If You disagree, then We retain the right to invoice You the prevaihrg hourly bil able rate for labor required to obtain motor readings, per meter reading cycle B. No License, other Prohibitions, Nothing herein shall be construed as granting a license to You for the use of the Monitoring Sothvare. You may not, riot may You permit or cause any other person to (a) use or copy the Monitoring Software. in whole or in part In any manner, (b) modify, translate, reverse engineer, decompile ordissembbte the Monitoring Software (c:. rent. lease loan, resel., distribute, use in a customer -server network to provide third parties access to, or otherwise transfer the Monitoring Software, of (d) remove any proprietary notices on the Monitoring Software C Intellectual Property Rights. All rights (including all intellectual property rights. whether recognized currently or In the future) In and to the Monitoring Software (including anysouce code executable code, object code tools and/or libraries related to the Monitoring Software) wile at all times be owned by Us. No modifications and/or use by You of the Monitoring Software shalt under arty circumstances transfer any right. title or interest in or to the Monitoring Software to You or any third party D. Monitoring Software Warranty, Uabillty You acknowledge that the Monitoring Software will be installed on Your networked warkxtailon(s) *as W without wantonly of any kind, either express or mplied. including the implied warranties of merchantability. fitness for a particular purpose and non•Infringernenl. We do not warrant that the Monitoring Software will be error free or will operate withoul Interruption. We shall in no event be liable to You or cry third parry for arty special, consequential, Incidental or indirect damages in connection with the Monitoring Software. If the software is found to cause Issues or Your network. and these Issues can be reasonably associated to the installation of the software through uniform software testing and tracing methodologies, Our iabiity wil be limited to the removal of said Monitoring Software from Your environment. IY. (ilMCELLANEOUS. A. Software. Performance issues related to Software arKUor connectivity are not covered under the terms of this Agreement. Any warranties rotated to Software will be those offered by the manufacturer and vit be passed directly to the user B- SoftwardHardware. Connectivity and performance Issues related to Software and non-standard hardware are riot covered under the terms of this Agreement. Arry warranties related to these solutions, which include but are not be limited to: Xerox ConneclKey Applications, PaperCut, XMedus Fax, Umango, Square9, Yxaft Nuance. Formax, NeoPosk or Xerox FmoRcw, any computers and scanners, will be those offered by the manufacturer and passed directly to the user Operation and configuration of the Software will be the responsibility of You after initial Install and operation test Is completed by Us Customer Initill� Page 2 of 2 wo 11 19 xe rox Addendum to Xerox Financial Services LLC Lease Agreement #020-0036746 The following sections replace or modify the corresponding sections in the Agreement and are hereby incorporated therein. In the event of any conflict between the terms of the Agreement and the terms below, the terms below shall control. Section 1. Definitions: Remove sentence which reads: Origination Fee" means a one-time fee of $125 billed on your first invoice which you agree to pay, covering the origination, documentation, processing and certain other initial costs for the Lease. Section 2. Lease, Payments and Late Payments. The following language is deleted. If any payment is not paid in full within 5 days after its due date, you will pay a late charge of the greater of 1010 of the amount due or $25, not to exceed the maximum amount permitted by law. Section S. Equipment Ownership, Labeling and UCC Filing. The following language is removed. You agree to pay any filing fees and administrative costs for the filing of such financing statements. Additional Section: Non -Appropriation. Your obligation to pay the Lease Payments and any other amounts due is contingent upon approval of the appropriation of funds by your governing body. In the event funds are not appropriated for any fiscal period equal to amounts due under the Lease, and you have no other funds legally available to be allocated to the payment of your obligations under this Lease, you may terminate the Lease effective on the first day of such fiscal period ("Termination Date") if: (a) you have used due diligence to exhaust all funds legally available; and (b) XFS has received written notice from you at least 30 days before the Termination Date. At XFS's request, you shall promptly provide supplemental documentation as to such non -appropriation. Upon the occurrence of such non - appropriation, you shall not be obligated for payment of any Lease Payment for any fiscal period for which funds have not been so appropriated, and you shall promptly deliver the Equipment to the Dealcr (or such other party as we may designate) as set forth in the return provisions of the Lease. Custome Lessor Acceptance: PALM SPx , S, CITY or Xerox Financial Services Authorized Signor: Accepted by: _. Print Name: Name: Title: Title: _ Date: -. Date: ` Signor for the Lease Agreement and the Addendum must be the some. APPROVED BY CITY COUNCIL APPROMASTOFOM Page I of I r� WTUPW G C� �pALMsp4 a u N �• CITY COUNCIL STAFF REPORT �1FORN�P DATE: JULY 24, 2019 CONSENT CALENDAR SUBJECT: APPROVE A FIVE-YEAR LEASE AGREEMENT WITH XEROX FINANCIAL SERVICES AND COST PER IMAGE AND MAINTENANCE AGREEMENT WITH VISUALEDGE, INC., DBA IMAGESOURCE FROM: David H. Ready, City Manager BY: Anthony J. Mejia, City Clerk SUMMARY The City Council is being requested to approve a five-year lease agreement with Xerox Financial Services for 29 new Xerox copiers to replace the existing copier fleet, and a five-year cost per image and maintenance agreement with VisualEdge, Inc., dba ImageSource. RECOMMENDATION: 1. Approve a five-year lease agreement with Xerox Financial Services, LLC, via the County of Los Angeles Cooperative Purchasing Program for 29 new Xerox copiers in the amount of $107,224.07 annually, inclusive of tax and a $15,000 annual credit for document translation services. 2. Approve a five-year cost per image and maintenance agreement with VisualEdge, Inc., dba ImageSource via the County of Los Angeles Cooperative Purchasing Program at the unit prices of $0.0049 per black and white image and $0.049 per color image. 3. Authorize the City Manager to execute all necessary documents. BACKGROUND: The City currently has a fleet of 27 copiers that were acquired via a cooperative purchasing program in 2015. The existing lease and maintenance agreements will expire in one year. The City now has the option to trade-in the existing fleet for an early upgrade, without penalty, while maintaining the per machine lease price and per image rates. After reviewing individual department needs and average copy volume per machine, staff is recommending a new fleet of 29 energy efficient Xerox Altal-ink Multifunction copiers. Eight of the copiers will have color printing capability and all copiers will be high speed and feature large paper capacity, scanning capability, automatic stapling, collating, USB device inputs, 3-hole punch, and FAX functionality. In addition, Xerox now provides a Document Translation Service embedded into the machine's interface in which scanned documents can be transmitted and translated into a choice of 45 different languages and returned to the requester via email. r-FM NO. e-nk 4- 1 City Council Staff Report July 24, 2019 - Page 3 Xerox Copiers and Maintenance Agreements Pursuant to the provisions of Section 7.09.010 of the Municipal Code, staff` recommends that the City Council award the lease and maintenance agreements utilizing County of Los Angeles Cooperative Purchasing Program as their competitive solicitation process meets our requirements and protects the public's Interest and the cost of the equipment and services due to economies of scale is likely to be less than through an independent city process. BUSINESS PRINCIPAL DISCLOSURE AND NON -DI SC RIM [NATIN Public Integrity Disclosure, Conflict of Interest, and Nan -Discrimination Certification Forms for Xerox Corporation, Xerox Business Solutions, Xerox Financial Services, and VisualEdge, Inc., dba ImageSource is included as Attachment 4. QALIFORNIA ENVIRONMENTAL QUALITY ACT_(CEQA) DETERMINATION: The requested City Council action is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT Annual lease and translation services payments in the amount of $107,224.07 as well as estimated cost per image and maintenance expenses are budgeted annually and are available for the current fiscal year in Account No. 001-1261-42990. ethny David H. Ready, Es City Clerk City Manager oFfill- Attachments: 1. Xerox Financial Services Lease Agreement 2. ImageSource Cost Per Image and Maintenance Agreement 3. County of Los Angeles Cooperative Purchase Agreement 4. Business Disclosure Form 9 f� L� *OimageSource transforming business Image Source Pri n Care 650 E Hospitality Lane, Suite 500 San Bernardino, CA 92406 At Managed Print Solutions Equipment Schedule A Lease Agreement Number Quantity I Model and Description 20 Xerox AltaLink B8055 6 Xerox AItaLink C8055 2 Xerox AltaLink C8070 1 Xerox VersaLink B6051X Audiw� +gnN ate Print Nome Title l;gwpment Scl c"c Ra sed I 1 19 16