HomeMy WebLinkAboutResolution - 121467I - Lease & Service Agreement - MAI Equipment Corporation - 12_14_1967• MAl AUIPMEaNT CORPORATION I11F'4rt4u,,f1 tooint,r. AGREEMENT
MAI BUILDING u s rl -i c ,, , 1 �� of Ittrl,FOR RENTAL AND SERVICE
300 EAST 44TH STREET OF MAI EQUIPMENT-n-
NEW YORK, NEW YORK 10017 `:''' 1+"'; ::' "' =''lira i t:' :• . (UNIT RECORD),.,
;"
Mri
MAI BRANCH OFFICE ADDRESS BRANCH OFFICE 010, 443
#23 BRIERCROFT OE'FICE PARK
.t,i 1.::.f -li.i A6REEMENT,.tyO.'• ? •;,d R•'.' •a
1 LUBBOCK a TEXAS �.1 r • r
y AOREEMEI+TT DATED as of the day of 196 between MAI EQUIPMENT
CORPORATION (•'MAI"), having its principal place of business at 300 East 44th Street, New York, New York 10017 and
CITY OF LUBBOCK 1
CUSTOMERS FULL LEGAL NAME
916 TEXFLS AVENUE LUBBOCKe TEXAS '
r IADDRES31
MAI, by its acceptance hereof, agrees, in accordance with this agreement, to lease to the Customer the equipment described In the schedule
annexed hereto, consisting of one ( 1) page(s).(the "Schedule")and to service such equipment.
1. Term of Agreement
e Any item of equipment made subject to this agreement shall have an initial term of six (0) months from the effective date
for such item. Either party may terminate an item of equipment at the end of such initial term, provided one (1) month's prior written notice
Is received, otherwise such Item shall remain subject hereto. Thereafter, an Item of equipment may be terminated. provided at least one (1)
month's prior written notice is received.
The effective date of an item of equipment shall be (a) the effective date of the MAI Purchase Order with respect to an*
A item purchased by MAI from the Customer or (b) the date an item Is Installed ready for use with respect to an item furnished by MAI from
e inventory ;
MAI's obligations hereunder shall automatically cease, terminate and expire with respect to any Item of equipment as to
which the Customer has defaulted In delivering title to MAI pursuant to a Purchase order between MAI and the Customer.
L Monthly Charges
The monthly rental charge for each item commences on the effective date for such Item. If this agreement Is effective with
respect to any item for less than a tall calendar month, the charge for each day for such item shall be computed at the rate of 1/30th of
i the monthly rental charge.
br.
The monthly rental charge for each Item leased hereunder is based upon unlimited time usage by the Customer. The use
of such equipment is restricted solely and exclusively to the Customer, its parents, subsidiaries and affiliates. R any parent, subsidiary
or affiliate @ball use the equipment, then such parents subsidiary or affiliate shall automatically become a party to this agreement by
reason of such axe sad shall use the equipment on the same terms and conditions as the Customer.
Monthly charges will be Invoiced as of the first of each month Payment shall be made In tall within thirty (30) days after
�. the date of Invoice.
The charges shown in the Schedule are those currently in effect. All monthly rental charges payable under this agreement
we subject to change upon three (3) months' notice. If the monthly charge Is changed for any Item of equipment. the Customer may dis-
continue such Item or terminate this agreement on the effective date, of such change by delivering one (0 month's prior written notice.
'otherwise, the new charge shall become effective.
There shall be added to the charges due hereunder amounts equal to am taxes, however designated. levied or based on
such charges or on this agreement or the equipment or Its use, Including state and local privilege or excise taxes based on gross revenue,
and any taxes or amounts in lieu thereof paid or payable by MAI in respect of the foregoing, exclusive, however, of personal property
ILtaxes assessed on the equipment and taxes.based on -met lncomee•'•r:, or;
(Continued on Rermve Side)
THE ADDITIONAL TERMS AND CONZIMONB ON THE REVERSE SIDE HEREOF ARE VMRPORATED IN AND MADE A PART OF
•:TMO AGREEMENT.
• �:., •/ .., . ,. rrft•• -lulu •1o.�nsmYi►q ul`aio 1AM md>f1 a�tlor'r.•;r,. ;, ; •i) '
ACCEPTED BY: ~ ACCEPTED BY:
r J It .ti:)!L.1cR l'nr. , r,iJi•,Pi r11 9(1 to Ai
MAI EQUIPMENT CORPORATION ..,rfr vtmntrrr:) ?di r,r em.9ibhn edl o, -vwCI'i'Y'� OF LUBBOCK
1 _ t 15. ;,, .'' llr.•.;irtUltvr nl.n ..
(CUSTOMER'S FULL LEGAL NAME)
l:" '!: , 1 aril O ilf i .ASr)l• Y.• w 1.) !,iziA ` W i :i i 1111!J
BY 1. 1 ..n rl • z.. hns. lnoi.BY ,
i:jiN ni n) IH.{!:r;'f)li)(Nit W *I!111d... •, is ,., .. :fl. t• 1•
' ' :7i.:til�•f47i T'+ i+�%}7'ii"'»?',i ';i - '.i.:.::r: ,
OFFICER'S TITLA OFFICER`'$ TITLR
7 .i.. :list Z:) $1011iiih,:1 ti1R r ^ii ,1l1W q*nIIi1nYdnitlnsrgsi�Ivrlbit.lil,1'1"( i. . c' C.ftJlllil'+lr `, Llibli s:f T►J jl'1,. ft .
DATE a r GATE ,
tees e24 ' IM .Ia/11a PMINttb IN Y.e.Ae T '
r Own
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1,,,. .• ti c 1,.•!-.. 'i -, r; U `,• ..,1:'rT,r '�; -jr� ,p,rh ,.LM �...' Its "A" r a:•.' • y'y'� -
a. 3. Additioml or Replacement Equipment .
Equipment, in addition to any leased hereunder or to replace any the Customer may have in use, will be furnished to the
Customer under this agreement, If available, at MAI's schedule of charges in effect on the date such equipment is installed ready for use.
An item of the same type and model furnished as a mechanical replacement for any item leased hereunder shall be furnished at the same
monthly rental charge as was in effect for the replaced item.
Additional or non -mechanical replacement equipment to. be leased hereunder shall _be• made subject to this agreement upon
execution by a duly authorized representative of the Customer, and. acceptance -thereof by IYIAI; of. either (aj •Cuatomer's Purchase Order on
MAL (b) MAI's form of amendment or (c) a letter agreement. The Customer's Purchase -Order, the .MAI form of amendment, or the letter
agreement will state the location of the installation, the type, model, description and monthly rental charge' for the equipment to be so
leased and billing instructions, if any.
1 4. Maintenance
MAI will be responsible for keeping the equipment in good working order and making all necessary adjustments, parts re-
placements and repairs. For such purpose, MAI may use its own or International Business Machines Corporation's ("IBM") maintenance
service. MAL in addition, will provide Its preventive maintenance service. MAI or, when used, IBM shall have full and free access to the
equipment during available working hours. Service and maintenance will be furnished from 0:00 ;A.M. to 5:30 P.M., Mondays through Ridays,
except legal holidays..Service and maintenance will be furnished; at the request bf the''Clistomer and when'available, at times other than
those specified in the preceding sentence and MAI shall charge the Customer therefor at MAI's rates then in effect. The required suitable
electric current to operate the equipment and a suitable place of installation with all facilities, both as specified in IBM's Installation
Manual, will be furnished by the Customer:
5. Risk of Loss
During the period the equipment is In transit or in the possession of the Customer, MAI and its insurer, if any, each relieves
the Customer of responsibility for all risk of loss or damage to the equipment except for the Customer's responsibility for loss or damage
+ caused by nuclear reaction, nuclear radiation or radioactive contamination.
�S r 6. Warranty
MAI warrants that each Item of equipment leased hereunder will be in good working order on the effective date for such
Item. MAI shall. in accordance with the terms of this agreement, cause to be made all necessary adjustments, repairs and replacements
necessary to maintain the equipment in good working order. All equipment Is supplied and maintained subject to this warranty and MAI's
obligation hereunder is limited to repair or replacement of any parts or items of equipment when MAI determines that they do not conform
to this warranty. The foregoing warranty Is in lieu of all other warranties, express or implied, and of all obligations or liabilities on the
part of MAI for damages, including, but not limited to, consequential damages, arising out of or In connection with the use or performance
of the equipment.
r 7. Alterations and Attachments
No alterations in or attachments to the equipment may be made without prlor`written approval of MA1, which approval shall
not be unreasonably withheld. If, after such written approval has been obtained, the alterations or attachments interfere with the normal and
satisfactory operation or maintenance of any of the equipment in such manner as to increase substantially the cost of maintenance thereforo-
or create a safety hazard. the Customer shall, upon notice from MAI to that effect, promptly remove the alteration or attachment and restore
- ' the equipment to its normal use. .
S. Transportation Expense
Except as hereinafter provided In this paragraph, all transportation, rigging and drayage charges ("transportation expenses")
In transporting the equipment shall be paid by the Customer. Where an item of equipment is installed as a mechanical replacement for an
'Item leased hereunder. MAI shall pay all transportation expenses with respect to the installation of the item being installed as a mechanical
replacement and with respect to the removal of the Item being replaced. Necessary packing'.cases for the return of the equipment and a
representative to supervise the packing will be furnished by MAI without charge. The cost of labor for crating and uncrating machines.
If any, is a Customer expense except when it is performed at an MAI plant or reconditioning location.
•9. General
The Customer agrees `that the equipment may not be moved from or transferred to a new location or locations without prior
written permission from MAI, which permission shall not be unreasonably withheld.
Either party may terminate this agreement for failure of the other to comply with any of its terms and conditions.
The equipment shall remain the propertyof MAI and may be removed by MAI at any time after the termination of this agreement.
F The Customer agrees to comply with any instructions from MAI as to payment of the charges hereunder to a person other
than MAI.
Any notice or other communication given hereunder shall be in writing and mailed, if to MAI. to the address of MAI's branch
office shown on the reverse _hereof and, •It to the Customer, to the address of the Customer shown on the reverse hereof or to such other
address as such party shall have theretofore deslgnated by notice in writing. Such notice or communication shall be deemed delivered when
sent postage prepaid (air mail if mauled more than 200 miles from the place of delivery), certified mail. return receipt requested.
This agreement shall be governed by the laws of the Bate of New York and constitutes the entire agreement between MAI
and the Customer with respect to the furnishing of MAL equipment and service. No vroviaion of this agreement shall be deemed waived.
amended or modified by either patty unless such waiver, amendment or modification be in writing signed by the party against whom it is
sought to enforce the waiver, amendment or modification.
_ The foregoing terms and conditions shall prevail •notMthstanding any variance with the terms and conditions of any order
submitted by the Customer.01
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MAI EQUIPMENT CORPORATION ur;SCHFDULE OF EQUIPMENT
MAI BUILDING (INCLUDING FEATURES)'
300 EAST 4 4TH STREET. AN 1011 PURCHASE ORDER a., gimp',
NEW YORK, NEW YORK 10017, 4 1 PURCHASE
etPAGE OF
ridv.V t .1,nt1., ORDER NOf
I, DRAN6 OFFICE 443..Ifl;,
'BRANCH OFFICE ADDRESS ti
11 - -'AGREEMENT NO.
#23 BRIERCROFT OFFICE PARK'!-""'."'
DATE
i, ItLUBBOCK# TEXAS
III le,t.i.4.
DATE OF RENTAL
ACRCCMCNT
I UIAMIL AIR THIE VATC i lol
"Roolor UNLIESSA
(CUSTOMEROS FULL LEGAL NAME AND ADDRESS) OATS III IN1111:1111TIK I
(LOCATION OF INSTALLATION)
CITY OF LUBBOCK Corporation Court,',,
916 TEXFLS AVENUE
LUBBOCKe TEXAS
OF A UNIT PRICE AND MONTHLY RENTAL CHARGE ARE LISTED FOR AN ITEM, THE ITEM IS BEING, BOTH PURCHASED PURSUANT TO THE TERMS
AND CONDITIONS PRINTED ON THE REVERSE HEREOF AND RENTED -PURSUANT TO AN AGREEMENT FOR RENTAL AND SERVICE OF MAI
EQUIPMENT. OF ONLY A MONTHLY RENTAL CHARGE IS LISTED, THEN THE ITEM 13 To'st SUPPLIED FOR RENTAL FROM MAPS INVENTORY
WHEN AVAILABLE.
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ACCEPTED 9Yt ;:mj;,'du ud ,rrj* vvic :trod roll: r.c vi
MAI EQUIPMENT CORPORATION CITY OF LUBBOCK
-l',i ICUSTOURIt"111 PULL L99ALNAMV
In's, Ai
11 flu OWNIED
By y 9GUIPMENT
-t r
r. ji-,civ , i fit jrr I.ippitapit I Arc ifelt,
OFFICIER's TITLE OKFICER's
CUSTamsm
ownto
DATE DATIZ
- U THIS PURCHASE ORDER IS YALWIMLY WHEN'StONt 0TO*"6,R11E0"0*F*FltE,kdi',iW'tQUI?iiENT.rCDItPORATION
11A "411 IM 111114141 PRINTRO 111 UsS.Alt
TERMS AND CONDITIONS OF PURCHASE ORDER FOR IBM EQUIPMENT ;}
f •
The terms and conditions listed below shall apply only to those items of equipment as to which a unit price is shown on the reverse hereof
r (such items of equipment being hereinafter referred to as the "Equipment"). ;
Terms and conditions applicable to the -purchase -of Equipment which is owned by IBM:
I., IV MAI understands that all of the Equipment listed on the reverse hereof Is presently owned by International Business Machines
Corporation ("IBM"). Within ten (10) days after the delivery of a fully executed copy of this Purchase Order to the Customer,
the Customer shall execute and deliver to IBM a purchase agreement w!ith.respect-to.thi Equipment installed at a location of the
Customer on the date a fully executed copy of this Purchase Order is delivered to'Ctratorher. Thie'Putcba'a`e Older shall be null and
void with respect to any item of Equipment not installed at a location of the Customer on such delivety d• to and any such item shall
be eliminated from the definition of the teim "Equipment" used herein. MAI and the Customer have entered or will enter into an
Agreement for Rental and Service of MAI Equipment (the "Rental Agreement") with respect to the Equipment in reliance upon the
Customer acquiring title to all the Equipment from IBM.
2. The purchase price to be paid to the Customer by MAI for each item of Equipment listed in this Purchase Order shall be the cost of
such item of Equipment, minus.tax, listed in the invoice Customer receives from IBM.;MAI.shall",p:aythe purchase price to the
Customer at such•time.and place as the -Customer shall designate upon not less than, twen ty-fi ve (25) days' notice to MAL The
Customer shall deliver to MAI a Bill of Sale or an invoice for such Items or shall tradsfet tit% to arid acknowledge payment by
MAI byendorsement upon a copy of the Invoice received from IBM for such items, and shall furru'ah. to MAI i truacopy of the receipted
original Invoice or Bill of Sale received by the Customer upon Its purchase of such items from IBM, all not later than the time MAI
makes payment pursuant hereto. The Customer may, suits option, designate the time and place for payment by MAI hereunder so that. ;
" such payment is made simultaneously with the payment by the Cuatomet fof such items upon the purchase thereof by the Customer e
` from IBM.
3.. The effectivedate for the purchase of the Equipment under this Purchase Order shall be the effective date of the'Customer's purchase, -
of the Equipment from IBM pursuant to a purchase agreement with IBM.
. Terms and conditions applicable to purchase of Equipment which is owned by Customer: r
i L MAI has entered or will enter into an Agreement far Rental and. Service, of MAI ..Equipment '(the ."Rental Agreement") with the
Customer with respect to the Equipment in reliance upon the Customei havih'g title to all the Equipment. The Customer hasenteredor
will enter into the Rental Agreement in reliance upon MAI purchasing the Equipment upon the terms and conditions herein provided.
2. The purchase price to be psi'd to the Customer by MAI for each item of Equipment shall.be the unit price set forth on the reverse
hereof. MAI shall pay the purchase price to the Customer at such time and place as the Customer shall designate upon not less than
twenty-five (25) days' notice to MAI. The Customer shall, prior to payment of the purchase price by MAI, deliver to MAI an invoice
for such items and a true copyof the receipted original invoice or Bill of Sale received by the Customer upon its purchase of such items.' j
i 3. The effective date for the purchase of the Equipment under this Purchase Order shall be the day following the date this Purchase
Order is fully executed unless MAI shall purchase an Item of equipment owned by IBM pursuant to a Purchase Order of even date
herewith, in which event the effective date for the Equipment shall be the effective date for such Items of equipment owned by IBM.
Conditions applicable to all purchases hereunder:
d. From the effective date for an item of Equipment, MAI and its insurer, if any, each relieves'the Customer of responsibility for all '
risk of loss or damage to the Equipment except' for the Customer's responsibility for loss or damage caused by nuclear reaction,
! nuclear radiation of radioactive contamination.
•s. Without limiting any other rights or remedies which MAI may have at law or In equity, MAI may, at Its option, terminate its oblige•
tions hereunders
(if IBM owns all Equipment)
A. If the Customer shall have acquired title to any of the Equipment and shall not within ten (10) days after such acquisition have
offered to transfer title to the Equipment to MAI upon the terms specified herein, or
(if Customer owns Equipment)
I B. If the Customer shall not have conveyed title to the Equipment to MAI within sixty (60) days after the effective date or simul-
taneously with the transfer of title with respect to any Equipment now owned by IBM and being purchased by MAI from the Customer
pursuant to a Purchase Order of even date herewith, whichever is later.
i 6. The Customer hereby certifies that it is not regularly engaged in the business of selling data processing equipment of the type being
sold hereunder and that the sale contemplated hereunder is, accordingly, an isolated transaction for the Customer. 'Where the Equip-
ment is owned by IBM, MAI and the Customer further agree that the Customer is purchasing the Equipment from IBM on behalf of
MAI and that such purchase would have been made directly by MAI as principal from IBM if IBM would have agreed to sell the items
directly to MAI as principal upon the same terms and conditions as it will sell them to the Customer. MAI hereby certifies that all,
i of the Equipment which it shall purchase hereunder shall be acquired for the purpose of rental to the Customer. MAI shall execute
and deliver to the Customer, and the Customer shall execute and deliver to IBM, at or prior to the closing, a resale exemption certifi.
rate for each jurisdiction in which the Equipment is located as shall exempt the respective purchase for resale from the otherwise
applicable sales or use tax. In any jurisdiction where (a) the sale by IBM to the Customer (if IBM presently owns the Equipme ru) and/
or (b) the sale by the Customer to MAI does not qualify within any exemption under the applicable statute or regulations thereunder,
MAI shall pay such tax which is based upon (x) the Customer purchasing from IBM and/or (y) the Customer's sale to MAI. In the event
that MAI shall determine to protest to the appropriate taxing authority or IBM the applicability of any sales or use tax, the Customer
shall cooperate with MAI in such manner as MAI may reasonably request, provided that MAI shall reimburse Customer for all expenses
Landcostswhich the,Customer may reasonably incur In connectiod with MAI's request to.cooperate. Nothing in this paragraph,howrever,._
shall limit the right of MAI to collect from the Customer such taxes as the Customer may be obligated to pay pursuant to the Rental, -0r
Agreement.
7. The Customer represents and warrants. to MAI that at the time MAI tenders payment for the items of Equipment (a) the Customer will
be the lawful owner o.f.each.ofsiich3tems, fiea'and clear from any liens and encumbrances (except this Purchase Order and the Rental
Agreement) and (b) the Customer will have full right, power and authority to sell all such items to MAI in accordance herewith. These
express representations shall survive payment of the purchase price, whether or not MAI has made any inspection of such items
-or the documents relating thereto. - I:!'fi.' if the Equipment is computer equipment, the Customer shall (a) if the Equipment is now subject to an IBM Status II Maintenance
Agreement, keep such agreement In fo&e until a similar agreement is procured by MAI on the Equipment unless MAI elects to sere -
ice such Equipment or (b) If such Equipment is -,tow Ieasgd frow, IBM, cooperate with MAI to obtain a Status II Maintenance Agreement'
on the. Equipment to become effective simultaneously with the termination of the Customer's lease with IBM. The cost of any such
". Status II Maintenance Agreement shall be borne by MAI from the effective date of this Purchase Order, regardless of the name in .
which such maintenance-agreement_stands.._....-•--
9. This Purchase Order, un adept cc br sto�Qer s omQ a ,cantt pr�ged, b `onstroed according to
;'a6d law�arolalig`.Stif 'ollVet` O �Ji�'iYl V'iff,stoiltgdy
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