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Ford Motor Company - OZILe. Ford Motor Company GOVERNOR/MAYOR LEASE VEHICLE PROGRAM LEASE AGREEMENT F o r d M o t o r C o m p a n y, as Lessor, hereby agrees to lease to CITY OF CARMEL, INDIANA as Lessee, a 2000 MERCURY MOUNTAINEER APPROVED, AS TO FORM BY:. as specified in your factory order (the "Lease Vehicle"*), Company Vehicle Tag No. 073R524 on the following terms and conditions: 1. The Lease Vehicle shall be used by the Lessee as the official car of its MAYOR Lessee's obligation to pay the lease fee (including the monthly installment payments provided for in Paragraph 3 and any other costs that may be due and payable hereunder) shall not be contingent upon or delayed pending Lessee's receipt of any payment or reimbursement from any third party. The Lease Vehicle shall be the latest model-year vehicle and furnished with all equipment necessary to its lawful operation, with all standard production accessories and with such optional extra equipment available in the normal production run as you may specify upon ordering. 3. The annual rental for the Lease Vehicle shall be $6,504 and shall be paid in accordance with one of the following payment plans selected by you and indicated on the last page of this Lease Agreement: LUMP-SUM PAYMENT due on the date the Lease Vehicle is delivered to you, and'payable upon presentation by us to you of properly certified vouchers or invoices. If, on the delivery of a new model-year vehicle pursuant to Paragraph 8, less than a year remains in the term of the present Lease, the lump-sum payment shall be adjusted to be an amount determined by apportioning the annual rental on a daily basis over the term, and the Lessee shall receive a credit in the amount of the difference between the lump-sum amount actually paid and the amount so calculated less any other payment obligations due and owing from Lessee with respect to the Lease Vehicle. If the Lease Vehicle is in service longer than the lease term (more than one year), Lessee will receive a monthly debit invoice for each additional day in an amount determined by apportioning the annual rental on a daily basis. MONTHLY PAYMENTS are due at the end of each month during the term of the lease and payable upon presentation by us to you of properly certified vouchers or invoices. For full calendar months during which this Lease is in effect, each installment payment shall be in an amount equal to one-twelfth of the annual rental. For those months during which this Lease is in effect that are less than full calendar months, each installment payment shall be in an amount determined by apportioning the annual rental on a daily basis. For purposes of computing amounts payable under this Lease, the Lease term shall be deemed to have 365 days and each fraction of a day shall count as a whole day. 4. Unless terminated earlier as provided in Paragraph 17 hereof, this Lease Agreement shall be for a term of one year commencing on the date the Lease Vehicle is delivered to you as evidenced in the Schedule A. (The Schedule A will be provided at time of delivery of the Lease Vehicle.) *The term "Lease Vehicle" as hereinaffer used shall mean the vehicle leased hereunder (or any substitute or replacement therefor). Lease Agreement - 2 - Tag No. 073R524 , We shall retain title to the Lease Vehicle and shall register.the same in our name. We shall also provide license plates. We shall pay registration and license fees. We shall pay for new vehicle preparation and delivery, repairs, replacement parts (including tires), routine maintenance and servicing required under normal use to keep the Lease Vehicle in proper operating condition, provided that such repairs, parts, maintenance, and servicing are obtained at an authorized Ford Motor Company dealership franchised to sell and service the make of car covered by this Lease Agreement. It is the Lessee's responsibility to comply with the recommended vehicle maintenance schedule outlined in the Owner's Manual. You shall provide at your expense all gasoline and windshield solvent required for the proper operation or protection of the Lease Vehicle, and for such washing, parking, garage, highway or other fees or costs as may be incurred apart from routine maintenance and in connection with the operation thereof. You shall not place any sign, marking or equipment in or upon the Lease Vehicle (except a sign or marking identifying the Lease Vehicle as an official vehicle) without our prior written consent and you shall bear the cost of removing any such sign, marking or equipment (including telephones or other transmitting or receiving devices) at the termination of this Lease and of repairing damage caused by such removal. At our election, we may replace the Lease Vehicle at any time after the introduction of any new model thereof, with a new model of the same make and having similar equipment, it being understood that the date of such replacement shall be within our discretion and that any such replacement vehicle shall be leased and used by you in accordance with this agreement. In the event such a replacement is made, you and we shall execute a revised Schedule A describing the replacement vehicle, and such revised Schedule A shall be substituted for that now attached hereto or for any subsequent substitute schedule. We shall provide insurance on the Lease Vehicle during the term of this Lease. Exact coverage details areas specified in the insurance policy. If there is a conflict between this insurance summary and the terms and conditions of the insurance policy, the insurance policy will control. The terms and conditions of the insurance policy may change without notice to the Lessee. A copy of the insurance policy is available to the Lessee upon written request to the Governor/Mayor Lease Vehicle Program, HFII World Center - WHO, Room 303, The American Road, P.O. Box 1899, Dearborn, MI 48121-1899. The following is a summary of the insurance provided at the time of this Lease and is for the Lessee's information. This summary is not an insurance policy. Ford Motor Company shall provide at its expense automobile liability and property damage insurance with respect to the vehicle to cover Ford Motor Company, the Lessee, and any properly licensed person driving the vehicle with the Lessee's permission. Such insurance shall provide bodily injury liability limits of $250,000 per person, $500,000 per accident, and property damage liability limits of $100,000 per accident. Medical payments coverage is provided with a $10,000 limit if no other medical plan or insurance coverage is applicable. "No Fault" coverage shall comply with the minimum basic requirements of any "No Fault" law that may be applicable. "Uninsured or underinsured motorist" coverage is provided with limits equal to the minimum limits required by the applicable Financial Responsibility Law. Ford Motor Company may reject, to the extent permitted by law, the inclusion of any supplemental "No Fault", "uninsured or underinsured motorist" coverage or other optional coverage beyond the minimum limits required by the applicable Financial Responsibility Law or other applicable law. The insurance provided by this lease shall apply only to the "lease vehicle" Except to the extent covered by such insurance, the Lessee agrees to defend, indemnify and hold Ford Motor Company harmless against any and all losses, liability, damage claims, demands, costs of every kind (except for loss of or damage to the leased vehicle), arising out of or connected with the use or operation of such vehicle. Ford Motor Company also shall provide such collision and/or upset insurance as we may desire with respect to the vehicle, and the Lessee shall not be liable to Ford Motor Company for loss of or damage to the vehicle caused by collision, upset, fire theft, or Act of God. 10. In the event of an accident, physical damage or loss-in-excess of $100, or glass/windshield damage involving the Lease Vehicle, you shall call the American Road Services Company (AMRO) within 48 hours at 1-800-770-6696 (8:00 a.m.-8:00 p.m. EST). In the case of any loss or damage, you shall make the Lease Vehicle available to us for inspection and repairs in accordance with our instructions to you. Lease Agreement - 3 - Tag No. 073R524 10. (continued) 11. 12. 13. 14. 15. 16. Without the prior authorization of the Lessor, Lessee shall-not, under any circumstances, make or cause to be made any repairs to a damaged Lease Vehicle. Once the Automobile Accident or Loss Report is received, we shall repair or replace the Lease Vehicle, provided, however. that the decision in each instance to replace or repair shall be at our discretion. In the event that the Lease Vehicle shall be unavailable to you or rendered inoperable by reason of such loss or damage, then we may, at our election, make available to you a current model vehicle (which may not be the same make or model as the Lease Vehicle) for your temporary use under the terms of this agreement pending delivery to you of the repaired Lease Vehicle or a replacement vehicle comparable to the Lease Vehicle. It shall be incumbent upon the Lessee to return any such temporary substitute vehicle to its originating source within 24 hours after notification to *the Lessee that the repaired Lease Vehicle or a replacement vehicle comparable to the Lease Vehicle is available. There shall be no adjustment of the lease fee during this period. Unless expressly agreed to by the Lessor, in advance and in writing, Lessor shall have no obligation to pay the cost of or to reimburse to Lessee the cost of any vehicle leased or rented by the Lessee from any car rental company or any other person or entity during the period in which the Lease Vehicle is rendered inoperable to Lessee. If the Lessor agrees that the Lessee may obtain a temporary substitute vehicle, the insurance provided under this Lease Agreement will not provide protection for the temporary substitute vehicle. If any claim is made or action commenced for damages for death, personal injury, or property damage resulting from or arising out of the ownership, maintenance, use or operation of the Lease Vehicle, you shall promptly notify us thereof and forward to us a copy of every demand, notice, summons, or other process received in connection therewith. You shall comply with the instructions provided with the Automobile Accident or Loss Report, and cooperate with us in all respects in connection with any claim or dispute concerning such accident. Nothing in this paragraph or in this agreement shall be construed to be an agreement by us to indemnify or hold you harmless against claims arising out of your use, operation or possession of the Lease Vehicle. You shall use and operate, and permit use and operation of, the Lease Vehicle only in a careful manner and in compliance with all requirements of any governmental authority having jurisdiction, including, without limitation, such requirements as pertain to the age and licensing of drivers and to disclosure of our interest in the Lease Vehicle. In no event shall the Lease Vehicle be misused or subjected to conditions causing unusual depreciation or be used or operated for an illegal purpose, or by a person under the influence of alcohol or narcotics, or for the transportation of goods or persons for hire. The Lease Vehicle shall not be operated outside the United States of America or Canada without our prior written' consent. You shall pay all state and/or local fines, taxes, assessments, and other governmental fees and charges payable with respect to the Lease Vehicle or on the use, possession, rental, delivery or operation thereof (excluding only net income or gross receipts taxes payable on or measured by fees paid hereunder and registration and license fees), and shall indemnify and hold us harmless-from and against any and all such fines, taxes, assessments, fees and charges, and all expenses, penalties, and forfeitures incurred in connection therewith. You shall make all required reporting of income to the proper taxing authorities as well as make all necessary withholding and payments of Federal, state, and local payroll taxes to such authorities to the extent required for the value of the use of the Lease Vehicle by your employees. We shall not be liable for any failure or delay in delivering the Lease Vehicle, or for any failure to perform any provision hereof resulting from fire or other casualty, riot, strike or other labor difficulty, governmental regulation or any inconvenience resulting from any theft, damage to, loss of, defect in, or failure of the Lease Vehicle or the time consumed in recovering, repairing, adjusting, servicing or replacing the same, and there shall be no abatement or refund of rental during such time. This agreement is one of leasing only and you shall not have nor acquire any right, title or interest in, or to, the Lease Vehicle except the right to use and operate it as provided in this agreement. Lease Agreement - 4 - Tag No. 073R524 17. 18. 19. 20. 21. This agreement may be terminated at any time prior to the expiration of its term, by you or by us, upon giving at least 30 days' written notice of termination to the other, specifying the date as of which the notice shall be effective. Prior to the effective termination date of this agreement, whether termination shall occur pursuant to the early termination provision of Paragraph 17 or by reason of the expiration of the term hereof, we shall advise you of a place within a reasonable distance of the principal place where the Lease Vehicle is garaged to which you shall return it. Upon the termination of the lease, you shall return the Lease Vehicle to us at such place in as good order and condition, except for ordinary wear and tear, as when it was first delivered to you by us. If there is glass, body or trim damage in excess of $100, it must be repaired before the vehicle is turned in. In the situation where a Lessee is currently leasing a vehicle under this Program, the vehicle must be relinquished before a new model-year vehicle can be delivered to the Lessee, unless otherwise authorized by the Lessor. Lessee represents and warrants that it is duly authorized to enter into and perform all of its obligations under this agreement, that it has obtained all requisite approvals, including budget appropriation approvals, with respect to its obligations hereunder, and that this agreement is valid and legally binding upon Lessee. This Lease constitutes the entire agreement between the parties and may not be changed except by an instrument in writing signed by the party to be charged. This Lease may not be assigned nor the Lease Vehicle subleased by you without our prior written consent. We may assign this Lease at any time but shall not thereby be relieved from any liability hereunder. In addition to the terms and conditions set forth above, the Lessee's continued use of the Lease Vehicle hereunder is conditional upon the Lessee's observing the provisions of Ford Motor Company's general policy on Company-owned vehicles (as described in "Highlights, Ford Motor Company's Governor/Mayor Vehicle Program), a copy of which has been provided to the Lessee and the Lessee agrees to be bound. J. Barry Coughlin, Director U.S. State, Local and Community Affairs Office Governmental Affairs Staff LESSEE'S BILLING ADDRESS: City of Carmel Office of the Mayor I Civic Square Carmel, IN 46032 LESSEE CHECK ONE: We elect the following payment plan outlined in Paragraph 3: a. Lump-sum payment ( vl/' b. Monthly payments ( ) ACCEPTED AND AGREED: (Two Signatures for Lessee) Date:- ,- By:, Title: Date: