Agenda 04/27/1999 - Laserfiche WebLink

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16. NATU.RE OF AGREEMENT The Lessor and the Lessee agree that it is their intention that, for federal income tax purposes, the interest of the Lessor in the Equipment is as a secured party and the interest of the Lessee is as a debtor, and that the Lessor neither has nor will have any equity in the .Equipment. It is the agreement of the Lessor and the Lessee that the aggregate rental payments provided for hereunder constitute the purchase price of the Equipment together with the interest on the unamortized mount thereof over the term of this Agreement, that each installment of rent constitutes principal and interest, in accordance with the amortization schedule attached to Schedule B, which fully amortizes the purchase price of the Equipment, together with. interest, over the term of this Agreement, and that upon the due and punctual payment and performance of the rental payments and other amounts and obligations under this Agreement, title to the Equipment shall vest permanently in Lessee as provided in this Agreement, free and clear of any lien or security of the Lessor therein. 17. OPTION TO PURCHASE The Lessee is granted a non-assignable option to purchase on an as is and where is basis all (but not less than all) of the Equipment, thereby vesting title to the Equipment permanently in Lessee, for a purchase price equal to one hundred percent (100%) of the outstanding principal balance and all accrued interest to date as shown on the amortization schedule attached to Schedule B of this Agreement. Upon payment of such purchase price, the Lease Term and this Agreement shall terminate. This option to purchase may be exercised by the Lessee anytime after the first twelve (12) months of the Lease Term and is conditioned upon: the Lessee's having performed all of the terms and conditions of the Agreement between the parties other than the payment of monies not yet due and payable under this Agreement; the Lessee's giving written notice to the Lessor of its election to exercise the option not less than thirty (30) days prior to the date of exercise of the option by the Lessee; and the Lessee's payment of the purchase price in cash at the time of the exercise of the option. 18. MISCELLANEOUS Waiver. No covenant or condition of this Agreement can be waived except by the written consent of the Lessor.' Any failure of the Lessor to require strict performance by the Lessee or any waiver by the Lessor of any terms, covenants or agreements herein shall 16