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Resolution No. 90321 2 3 4 5 6 7 8 9 10 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9032 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF CLOSED END MOTOR VEHICLE LEASE EXTENSION AGREEMENTS BY AND BETWEEN THE CITY OF VERNON AND TOYOTA LEASE TRUST FOR TWO 2002 TOYOTA RAV4EV VEHICLES WHEREAS, both the Department of Environmental Health and the Light and Power Department are currently leasing 2002 Toyota RAV4 Electric Vehicles (the "Vehicles") through Toyota Lease Trust ("Toyota"); and WHEREAS, the Light and Power Department is no longer interested in using one of the Vehicles; and WHEREAS, the Department of Environmental Health desires to extend the leases on both Vehicles as they have found the Vehicles to be very effective and efficient because of the Vehicles' ability to operate without gasoline, its high visibility, its higher profile affording a greater range of vision and its ability to transport and access field equipment; and WHEREAS, Toyota has provided the City with two Closed End Motor Vehicle Lease Extension Agreements to lease the Vehicles from July 16, 2006 to July 16, 2007, for a total lease extension price of $6,735.60 per vehicle; and WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into a lease with Toyota for the Vehicles. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Closed End Motor Vehicle Lease Extension Agreements for each vehicle, copies of which are attached hereto as Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor to execute said Leases for, and on behalf of, the City of Vernon and the Acting City Clerk is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby authorizes the Acting City Clerk to execute on behalf of the City any and all additional documents required for the leasing of the Vehicles under said Leases SECTION 5: The City Council of the City of Vernon hereby directs the Acting City Clerk, or his designee, to send one fully executed Lease for each Vehicle to Toyota Lease Trust. SECTION 6: The Acting City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 3rd day of May, 2006. (ATTEST: BRUCE V. MAL ENHORST, JR. Actin City Clerk LEONIS C. MLBURI, Mayor - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9032, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, May 3, 2006, and thereafter was duly signed by the Mayor of the City of Vernon. _ (SEAL) - 3 - BRUCE(V. PALKENHORST, JR. Actin ty Clerk EXHIBIT "A& tv e • FINANCIAL SERVICES 1. Parties CLOSED END MOTOR VEHICLE LEASE EXTENSION AGREEMENT Account Number 01-0277-BN424 Lease Extension Date 04/05/06 (Z)iADO-Ars Financial Services LESSOR NAIVE AND ADDRESS LESSEE AND CO -LESSEE NAME AND VEHICLE GARAGING ADDRESS, IF DIFFERENT THAN LESSEE'S RESIDENTIAIJBILLING ADDRESS THE LESSEE'S BILLING ADDRESS TOYOTA LEASE TRUST CITY OF VERNON P.O. BOX 9490 4305 SANTA FE AVE CEDAR RAPIDS, IA 52409-9490 VERNON CA 90058 COUNTY: COUNTY: 2. Description of Original Leased Vehicle ( 2002 1 TOYOTA I RAV4 EV I JT3GS1 OVX20002436 Unless otherwise specked, "you" and "your'" refer to the Lessee and Co -Lessee and "we", "us" and "our' refer to the Lessor. This Lease Extension Agreement ("Lease Extension") is an agreement to extend the term and modify specific provisions of the Original Lease Agreement ("Original Lease") dated 7/16/2002, between the Lessee and Co -Lessee set forth above and LONGO TOYOTA ("Originating Dealer"). By signing this Lease Extension, you, the Lessee and Co -Lessee, agree to continue to lease the original Leased Vehicle described in Section 2, above, under the terms set forth in the Original Lease, as well as the terms set forth in this Lease Extension. You agree that this Lease Extension constitutes an extension, at your request, of the Original Lease, and is not a renegotiation of the Original Lease. The disclosures set forth in this Lease Extension are required to be made under Federal Law. Other disclosures required under Federal and State Law may be found in the Original Lease. In the case of a conflict between this Lease Extension and the Original Lease, the terms of this Lease Extension shall control. The Current Mileage on the Lease Vehicle is 3. Amount Due at Lease Extension Signing or Delivery (Itemized in Section 7 below) $0.00 (to be filled in by 4. Monthly Payments Your first Monthly Payment during the Lease Extension Term of $561.30 is due on 7/16/2006, followed by 11 payments of $W1.30 due on the 16th of each month. The S. Other Charges (not part of 6. Total of Payments your Monthly Payment) During the Lease Extension Term Disposition fee (if you do not (The amount you will purchase the Vehicle) have paid by the end $ N/A of the Lease Extension) total of your Monthly Payments during the Total $ N/A $6,735.60 Lease Extension is $6,735.60. 7. Amount Due at Lease Extension Signing or $0.00 8. How the Amount Due at Lease Extension N/A Delivery Signing or Delivery will be paid: Is. Gross Capitalized Cost. The agreed upon value of the vehicle ($24,658.00) and any items you pay over the Lease Extension Term (such as service contracts, insurance, and any outstanding prior credit or lease balance). For an itemization of this amount, see Section 13. $24,658.00 b. Capitalized Cost Reduction. The amount of any net trade-in allowance, rebate, noncash credit, or cash you pay that reduces the Gross Capitalized Cost. $0•00 c. Adjusted Capitalized Cost. The amount used in _ calculating your Base Monthly Payment. $24,658.00 d. Residual. Value. The value of the Vehicle at the end of the Lease Extension used in calculating your Base Monthly Payment. - $20,423.44 a., Depreciation and any AMOrtlzed Amounts. The amount charged for the Vehicle's decline in value through normal use and for other Items paid over the Lease Extension Term. _ $4 234 56 f. Total Rent Charge. The amount charged in addition to + $1,987.68 the Depredation and any Amortized Amounts. g. Total of Base Monthly Payments. The Depredation $6,222.24 and any Amortized Amounts plus the Rent Charge. h. Lease Extension Term. The number of payments + 12 your Lease will be extended. 1. Base Monthly Payment = $518.52 j. Monthly Sales/Use Tax + $42.78 k. N/A + $0.00 I. Total Monthly Payment ("Monthly Payment") _ $561.30 Early Termination. You may have to pay a substantial charge If you end this Lease early. The charge may be up to several thousand dollars. The actual charge will depend on when the Lase is terminated. The earlier you end the Lease, the greater this charge is likely to be. 10. Excessive Wear and Use. You maybe charged for excessive wear based on our standards for normal use and for mileage in excess of 15,000 miles per year for the total of the Original Lease Term plus the Lease Extension Term, at the rate of $0.15 cents per mile. 11. Purchase Option at End of Lease Extension Term. You have an option to purchase the Vehicle at the end of the Lease Extension Term for $20,423.44. 12.Other important Terms. See the remaining terns and conditions contained in this Lease Extension and any other Lease documents for additional information on early termination, purchase options and maintenance responsibilities, warranties, late and default charges, insurance and any security interest, if applicable. ■NIMlow ■eir Pape 1 of 3 DMS 8055 (07/04) 13. Itemization of Gross Capitalized Cost You will pay for the following items over the Lease Extension Term as part of your monthly payment: a. Agreed Upon Value of the Vehide $24,658.00 b. Gross Capitalized Cost =--V4-.Wff.W 14. The total number of months this Lease is extended (the "Lease Extension Term") is 12, and the Extended Maturity Date of this Lease Is 7/16/2007. 15. Required insurance You must provide the following insurance during the Lease Extension Term with the Lessee and/or Co -Lessee as an Insured driver. No other types of insurance are required: a. Primary automobile liability insurance with minimum limits for bodily injury or death of 1) $15,000 for any one person, and ii) $30,000 for any one accident, and 111) $5,000 for property damage, and b. physical damage insurance for the full value of the Vehicle, with a maximum deductible of $1,000. See Section 20 for additional information. iv. vemcie maintenance and Damage. You are responsible for all maintenance, repair, service, and operating expenses of the Vehide. You agree to follow the owner's manual and maintenance schedule, and to provide us with written proof of such maintenance. You are responsible for all damage to the Vehicle (including but not limited to, damage to the engine) and for its loss, seizure or theft. You must tell us immediately if any of these events happen, and cooperate with your insurance company. You must maintain the Vehicle in compliance with any legal selling requirements. 20. Required Insurance. We have the right to change the amounts of Required Insurance shown in Section 15. The limits we require may not be sufficient for your needs. See your insurance provider for more information. You may purchase the required Insurance coverage from an insurer of your choice, subject to our right to reject that insurer for reasonable cause. The insurance policy must be acceptable to us, name Toyota Motor Credit Corporation or Lexus Financial Services as additional Insured and loss payee, and give us at least 10 days written notice before any cancellation or reduction in coverage. You authorize us to endorse your name(s) on any check or draft from your insurance company for any claim. You must provide us with written proof of this insurance. NO INSURANCE COVERAGE FOR PHYSICAL DAMAGE TO THE LEASE VEHICLE, OR LOSS OF THE LEASED VEHICLE, IS PROVIDED UNDER THIS LEASE. 21. Charges for Late Payments. If we do not receive a full Monthly Payment within 10 days after it is due, you must pay the late payment and a late charge, if any, as disclosed in the Original Lease. 22. Early Termination By Us. We may terminate this Lease Extension at any time if you are in default (see your Original Lease) and you must pay us the amounts set forth in Section 23, as well as all of our expenses for taking actions upon your default, as described in the Original Lease. Such expenses include, but are not limited to, the reasonable costs incurred in retaking, transporting, storing, preparing for disposition, and disposing of the vehicle, and collection and legal costs, as showed by state law. in the case of a theft or total loss, or in the case that the Vehicle is riot returned to us, you will owe the Adjusted Lease Balance (as defined in Section 24), less any insurance proceeds received. 16. Estimated Official Fees and Taxes $513.36 This is an estimate of the total amount you will pay over a ease Extension Term for offldal and license fees, registration, titre, and taxes (including personal property taxes), whether included in your Total Monthly Payment (Section 9.1), the Amount Due at Lease Extension Signing or Delivery (Section 7) or billed separately. The actual total of Official Fees and Taxes may be higher or lower depending upon the tax rate in effect or the value of the vehicle at the time a fee or tax is assessed. This estimate Is based on your current address and may increase If you move or If tax rates change. You are responsible for paying any increases. See Section 27 for additional information. 17.Optional Insurance and Other Products This Lease Extension does not include an extension of any Optional Insurance and Other Products such as Credit Life Insurance, Credit Disability Insurance, Guaranteed Auto Protection, Mechanical Breakdown Protection or Maintenance Agreement, which may have been included in the Original Lease Agreement. 18. Charges Due Under the Original Lease All unpaid charges due under the Original Lease shall become part of this Lease Extension. You understand that these charges may not be reflected In the Base Monthly Payment in this Lease Extension, but may be owed at the end of the Lease Extension Term. 23. Early Termination by You. If you are not in default, you may terminate this Lease Extension at any time if you return the Vehide to us, at a location we specify, and pay us, upon demand, the following amounts: a. any Monthly payments or other amounts which have become due under this Lease Extension or the Original Lease, including charges for Excessive Wear and Use and excess mileage (Sections 10 and 26); plus b. any official fees or taxes charged in connection with the Lease Extension termination; minus c. any remaining Refundable Security Deposit disclosed in the Original Lease. 24.Your Option to Purchase Vehicle. You may purchase the Vehicle at any time during the Lease Extension Term or at the Extended Maturity Date (unless a government agency has seized the Vehicle and instructed us not to release the Vehicle to you). The price to purchase the Vehicle at the Extended Maturity Date is the Purchase Option Price shown in Section 11, plus 24a, 24b and 24c below. The price to purchase the Vehicle during the Lease Extension Term is: a. any Monthly Payments or other amounts due under this Lease Extension, except charges for Excessive Wear and Use and excess mileage (sections 10 and 26); plus b. any official fees and taxes, or documentary fees charged in connection with the purchase; plus c. any amounts necessary to meet any legal selling requirements; plus d. .the Adjusted Lease Balance which is calculated as follows: add together the Depredation Portion of the Monthly Payments which would become due after the date you wish to purchase the Vehicle, plus the Residual Value. To determine the Depreciation Portion of the Monthly Payment, divide the "Depredation and any Amortized Amounts" (Section 9.e) by the "Lease Extension Term" (Section 9.h). Pegs 2 0 3 DMS 6055 (07104) 25. Obligations if You Do Not Purchase the Vehicle at the scheduled Extended Maturity Date. At the Extended Maturity Date, you must return the Vehicle to us at the location we specify, and pay us, upon demand, the following amounts: a. any Monthly Payments or other amounts due under this Lease Extension; plus b. any official fees or taxes charged in connection with the Lease termination; plus c. any Excessive Wear and Use charges disclosed in Section 26; plus d. any excess mileage charge disclosed in Section 10. You will not receive a refund if you do not use all of the mileage set forth In Section 10. 26. Excessive Wear and Use Charges. At the Scheduled Extended Maturity Date, if you do not purchase the Vehicle, you must pay us the estimated cost to repair damage to the Vehicle which Is excessive wear and use. Excessive wear and use includes, but is riot limited to: a. inoperative mechanical and electrical parts; b. damage (including but not limited to, damage tD the engine) due to your failure to maintain the Vehicle in accordance with Section 19; c. damage to the body, lights, trim or paint; d. damaged, broken or tinted glass; e. tom, damaged or stained interior, f. damage from flood, water, hail or sand; g. damage from removal of equipment or signs placed on the Vehicle; h. missing equipment, parts and accessories. Including missing keys or remote entry devices; or L tires with less than 3/32 inch of tread remaining, or any tire not part of a matching set of 5 tires (or 4 with an emergency spare if the Vehicle was originally equipped with one). 27.Oiflcial Fees, Taxes and Fines. You must promptly pay all official fees and taxes related to this Vehicle and this Lease Extension Agreement, Including title, license and registration fees, and sales, use, excise and personal property taxes. You must promptly pay any fines incurred on the Vehicle such as traffic or parking tickets. Some bills for official fees and taxes may be sent to you for payment Other bills may be paid by us on your behalf and we will charge you the amount paid. You must pay all fees incurred during the Lease Extension Term, even if they are assessed and billed after this Lease Extension has ended. We may charge you an estimated amount for the remaining fees and taxes at the time this Lease Extension ends. You are responsible for any shortage In this estimate, and we will refund you any excess. We are not obligated le apply for any refund or abatement of official fees and taxes, including personal property taxes. If you make a written request that we apply for refund of an official fee or tax that you paid to us, to which you are entitled, we will file an application for refund. We will send any refund we receive, less any amounts due under this Lease Extension or the Original Lease, to you. We may pay any title, registration, license fee, tax or fine which you fail to pay, and charge you the amount paid. You are responsible for any fines or penalties if you fall to pay the bill when due. By signing below, you acknowledge that (1) You have read this entire Lease Extension Agreement, Including all three pages; (2) You agree to all of the provisions of this Lease Extension Agreement, as well as to the provisions of the Original Lease Agreement; (3) You have received a completely filled -in copy of this Lease Extension Agreement; (4) This is an extension of the Original Lease Agreement, and not a new or renegotiated lease; (5) The current Mileage set forth in Section 2 is accurate; (6) You acknowledge that a facsimile transmission of this document stored by Lessor in electronic or paper form shall constitute an original for all purposes under this Agreement; (7) You acknowledge that all parties to this Lease Extension and the Original Lease may sign ditrent copies of this Lease Extension and each copy will be valid and enforceable against the signer(s) and all of the copies, together, will constitute one and the same Agreement. Lessee Signature Co -Lessee Signature Upon receipt of a completely filled -in original or facsimile of this Lease Extension, fully executed by Lessee and Co -Lessee, TOYOTA LEASE TRUST accepts this Lease Extension Agreement. Page 3 of 3 DMS 6055 (07/04) (�DTOYOTA sm CLOSED END MOTOR VEHICLE LEASE EXTENSION AGREEMENT 1. Parties Account Number 01-0277-BN425 Lease Extension Date 04/05/06 It A'r'� — Financial Services LESSOR NAME AND ADDRESS LESSEE AND CO -LESSEE NAME AND VEHICLE GARAGING ADDRESS, IF DIFFERENT THAN TOYOTA LEASE TRUST LESSEE'S RESIDENTIAL/BILLING ADDRESS CITY OF VERNON THE LESSEE'S BILLING ADDRESS P.O. BOX 9490 4305 S SANTA FE AVE CEDAR RAPIDS, IA 52409-9490 VERNON CA 90058-1714 COUNTY: COUNTY: c. vesunpuon or Original Leased Vehicle Year make Model VehicleIdentiftation Number 2002 TOYOTA RAV4 EV JT3GS10V120002437 llnlpce nfhnrwicc cnnniFin.d ...� "..�.. ,, _s__ .. s--■ I 01ai w U M &.e5st 6 0M w-Lessee ano -we, -us and -our" refer to the Lessor. This Lease Extension Agreement ("Lease Extension") is an agreement to extend the term and modify spedfic provisions of the Original Lease Agreement ("Original Lease") dated 7/16/2002, between the Lessee and Co -Lessee set forth above and LONGO TOYOTA ("Originating Dealer"). By signing this Lease Extension, you, the Lessee and Co -Lessee, agree to continue to lease the original. Leased Vehide described in Section 2, above, under the terms set forth in the Original Lease, as well as the terms set forth in this Lease Extension. You agree that this Lease Extension constitutes an extension, at your request, of the Original Lease, and is not a renegotiation of the Original Lease. The disclosures set forth in this Lease Extension are required to be made under Federal Law. Other disclosures required under Federal and State Law may be found in the Original Lease. In the case of a conflict between this Lease Extension and the Original Lease, the terms of this Lease Extension shall control. The Current Mileage on the Lease Vehicle is (to he fillari in by I aecwml 3. Amount Due at Lease Extension Signing or 4. Monthly Payments 5. Other Charges (not part of 6. Total of Payments Delivery Your first Monthly Payment during the Lease your Monthly Payment) During the Lease Extension Term of $561.30 is due on Disposition fee (if you do not Extension Term (The amount you will (Itemized in Section 7 below) 7/16/2006, followed by 11 payments of purchase the Vehicle) have paid by the end $0.00 $561.30 due on the 16th of each month. The $ N/A of the Lease Extension) total of your Monthly Payments during the Total $ N/A $6,735.60 Lease Extension is $6,735.60. 7. Amount Due at Lease Extension Signing or $0 00 8. How the Amount Due at Lease Extension N/A Delivery Signing or Delivery will be paid: Ia. WOSS capitalized Cost. The agreed upon value of the vehide ($24,658.00) and any items you pay over the Lease Extension Term (such as service contracts, insurance, and any outstanding prior credit or lease balance). For an itemization of this amount, see Section 13. $24,658.00 b. Capitalized Cost Reduction. The amount of any net trade-in allowance, rebate, noncash credit, or cash you pay that reduces the Gross Capitalized Cost. $0•00 c. Adjusted Capitalized Cost. The amount used in = calculating your Base Monthly Payment. $24,658.00 d. Residual Value. The value of the Vehide at the end of the Lease Extension used in calculating your Base Monthly Payment. - $20,423.44 e. Depreciation and any Amortized Amounts. The amount charged for the Vehide's dedine in value through normal use and for other items paid over the Lease Extension Term. I = $4,234.56 f. Total Rent Charge. The amount charged in addition to + $1,987.68 the Depreciation and any Amortized Amounts. g. Total of Base Monthly Payments. The Depredation = $6,222.24 and any Amortized Amounts plus the Rent Charge. h. Lease Extension Term. The number of payments + 12 your Lease will be extended. 1. Base Monthly Payment = $518.52 1. Monthly Sales/Use Tax + 42.78 k. N/A + $0,00 I. Total Monthly Payment ("Monthly Payment") = $561.30 Early Termination. You may have to pay a substantial charge If you end this Lease early. The charge may be up to several thousand dollars. The actual charge will depend on when the Les" is terminated. The earlier you and the Lease, the g mater this charge is likely to be 1U. excessive Wear and Use. You may be charged for excessive wear based on our standards for normal use and for mileage in excess of 15,000 miles per year for the total of the Original Lease Term plus the Lease Extension Term, at the rate of $0.15 cents per mile. 11. Purchase Option at End of Lease Extension Term. You have an option to purchase the Vehide at the end of the Lease Extension Term for $20,423.44. 12.Other Important Terms. See the remaining terms and conditions contained In this Lease Extension and any other Lease documents for additional information on early termination, purchase options and maintenance responsibilities, warranties, late and default charges, insurance and any security interest, if applicable. milin'olo'nillilill Pepe 1 of 3 MAR AMRR n»ma% 13. Itemization of Gross Capitalized Cost You will pay for the following items over the Lease Extension Term as part of your monthly payment: a. Agreed Upon Value of the Vehide $24,658.00 b. Gross Capitalized Cost 14. The total number of months this Lease is extended (the "Lease Extension Term") is 12, and the Extended Maturity Date of this Lease is 7/1612007. 15. Required Insurance You must provide the following insurance during the Lease Extension Term with the Lessee and/or Co -Lessee as an Insured driver. No other types of insurance are required: a. Primary automobile liability insurance with minimum limits for bodily injury or death of 1) $15,000 for any one person, and ii) $30,000 for any one accident, and 111) $5,000 for property damage, and b. physical damage insurance for the full value of the Vehicle, with a maximum deductible of $1,000. See Section 20 for additional information. 19. Vehicle Maintenance and Damage. You are responsible for all maintenance, repair, service, and operating expenses of the Vehide. You agree to follow the owner's manual and maintenance schedule, and to Provide us with written proof of such maintenance. You are responsible for all damage to the Vehide (including but not limited to, damage to the engine) and for its loss, seizure or theft. You must tell us Immediately if any of these events happen, and cooperate with your insurance company. You must maintain the Vehide in compliance with any legal selling requirements. 20. Required Insurance. We have the right to change the amounts of Required Insurance shown In Section 15. The limits we require may not be sufficient for your needs. See your insurance provider for more information. You may purchase the required insurance coverage from an Insurer of your choice, subject to our right to reject that insurer for reasonable cause. The insurance policy must be acceptable to us, name Toyota Motor Credit Corporation or Lexus Financial Services as additional insured and loss payee, and give us at least 10 days written notice Dore any cancellation or reduction in coverage. You authorize us to endorse yourname(s) on any check or draft from your insurance company for any claim. You must provide us with written proof of this insurance. NO INSURANCE COVERAGE FOR PHYSICAL DAMAGE TO THE LEASE VEHICLE, OR LOSS OF THE LEASED VEHICLE, IS PROVIDED UNDER THIS LEASE. 21. Charges for Late Payments. If we do not reeve a full Monthly Payment within 10 days after it is due, you must pay the late payment and a late charge, if any, as disclosed in the Original Lease. 22. Early Termination By Us. We may terminate this Lease Extension at any time if you are in default (see your Original Lease) and you must pay us the amounts set forth in Section 23, as well as all of our expenses for taking actions upon your default, as described in the Original Lease. Such expenses include, but are not limited to, the reasonable costs incurred in retaking, transporting, storing, preparing for disposition, and disposing of the vehicle, and collection and legal costs, as allowed by state law. In the case of a theft or total loss, or in the case that the Vehicle is not returned to us, you will owe the Adjusted Lease Balance (as defined in Section 24), less any insurance proceeds received. 16. Estimated Official Fees and Taxes $513.36 This Is an estimate of the total amount you will pay over the Lease Extension Term for official and license fees, registration, title, and taxes (including personal property taxes), whether included in your Total Monthly Payment (Section 9.1), the Amount Due at Lease Extension Signing or Delivery (Section 7) or billed separately. The actual total of Official Fees and Taxes may be higher or lower depending upon the tax rate in effect or the value of the vehicle at the time a fee or tax is assessed. This estimate Is based on your current address and may increase if you move or if tax rates change. You are responsible for paying any increases. See Section 27 for additional information. 17.Optional Insurance and Other Products This Lease Extension does not include an extension of any Optional Insurance and Other Products such as Credit Life Insurance, Credit Disability Insurance, Guaranteed Auto Protection, Mechanical Breakdown Protection or Maintenance Agreement, which may have been included in the Original Lease Agreement. 16. Charges Due Under the Original Lease All unpaid charges due under the Original Lease shall become part of this Lease Extension. You understand that these charges may not be reflected In the Base Monthly Payment in this Lease Extension, but may be owed at the end of the Lease Extension Term. 23. Early Termination by You. If you are not in default, you may terminate this Lease Extension at any time if you return the Vehicle to us, at a location we specify, and pay us, upon demand, the following amounts: a. any Monthly payments or other amounts which have become due under this Lease Extension or the Original Lease, including charges for Excessive Wear and Use and excess mileage (Sections 10 and 26); plus b. any official fees or taxes charged in connection with the Lease Extension termination; minus c. any remaining Refundable Security Deposit disclosed in the Original Lease. 24.Your Option to Purchase Vehicle. You may purchase the Vehicle at any time during the Lease Extension Term or at the Extended Maturity Date (unless a government agency has seized the Vehicle and instructed us not to release the Vehicle to you). The price to purchase the Vehicle at the Extended Maturity Date is the Purchase Option Price shown in Section 11, plus 24a, 24b and 24c below. The price to purchase the Vehicle during the Lease Extension Term is: a. any Monthly Payments or other amounts due under this Lease Extension, except charges for Excessive Wear and Use and excess mileage (sections 10 and 26); plus b. any official fees and taxes, or documentary fees charged in connection with the purchase; plus c. any amounts necessary to meet any legal selling requirements; plus d. the Adjusted Lease Balance which Is calculated as foilows: add together the Depredation Portion of the Monthly Payments which would become due after the date you wish to purchase the Vehicle, plus the Residual Value. To determine the Depredation Portion of the Monthly Payment, divide the "Depredation and any Amortized Amounts" (Section 9.e) by the "Lease Extension Term" (Section 9.h). Paps 2 of 3 DMS 6055 (07/04) 25. Obligations if You Do Not Purchase the Vehicle at the Scheduled Extended Maturity Date. At the Extended Maturity Date, you must return the Vehicle to us at the location we specify, and pay us, upon demand, the following amounts: a. any Monthly Payments or other amounts due under this Lease Extension; plus b. any official fees or taxes charged in connection with the Lease termination; plus c. any Excessive Wear and Use charges disclosed in Section 26; plus d. any excess mileage charge disclosed in Section 10. You will not receive a refund if you do not use all of the mileage set forth in Section 10. 26. Excessive Wear and Use Charges. At the Scheduled Extended Maturity Date, if you do not purchase the Vehicle, you must pay us the estimated cost to repair damage to the Vehicle which is excessive wear and use. Excessive wear and use includes, but is not limited to: a. inoperative mechanical and electrical parts; b. damage (including but not limited to, damage to the engine) due to your failure to maintain the Vehicle in accordance with Section 19; c. damage to the body, lights, trim or paint; d. damaged, broken or tinted glass; e. tom, damaged or stained interior; f. damage from flood, water, hail or sand; g. damage from removal of equipment or signs placed on the Vehicle; h. missing equipment, parts and accessories, including missing keys or remote entry devices; or I. tires with less than 3/32 inch of tread remaining, or any tire not part of a matching set of 5 tires (or 4 with an emergency spare if the Vehicle was originally equipped with one). 27. Official Fees, Taxes and Fines. You must promptly pay all official fees and taxes related to this Vehicle and this Lease Extension Agreement, Including title, license and registration fees, and sales, use, excise and personal property taxes. You must promptly pay any fines incurred on the Vehicle such as traffic or parking tickets. Some bills for official fees and taxes may be sent to you for payment Other bills may be paid by us on your behalf and we will charge you the amount paid. You must pay all fees incurred during the Lease Extension Tenn, even if they are assessed and billed after this Lease Extension has ended. We may charge you an estimated amount for the remaining fees and taxes at the time this Lease Extension ends. You are responsible for any shortage in this estimate, and we will refund you any excess. We are not obligated to apply for any refund or abatement of official fees and taxes, including personal property taxes. If you make a written request that we apply for refund of an official fee or tax that you paid to us, to which you are entitled, we will file an application for refund. We will send any refund we receive, less any amounts due under this Lease Extension or the Original Lease, to you. We may pay any title, registration, license fee, tax or fine which you fail to pay, and charge you the amount paid. You are responsible for any fines or penalties if you fail to pay the bill when due. By signing below, you acknowledge that (1) You have road this entire Lease. Extension Agreement, Including all three pages; (2) You agree to all of the provisions of this Lease Extension Agreement, as well as to the provisions of the Original Luse Agreement; (3) You have received a completely filled -in copy of this Lease Extension Agreement; (4) This Is an extension of the Original Lease Agreement, and not a new or renegotiated lease; (5) The current Mileage set forth in Section 2 is accurate; (a) You acknowledge that a facsimile trenemission of this document stored by Lessor in electronic or paper form shall constitute an original for all purposes under this Agreement; (7) You acknowledge that all parties to this Lease Extension and the Original Lease may sign different copies of this Lease Extension and each copy will be valid and enforceable against the signer(s) and all of the copies, together, will constitute one and the same Agreement. Lessee Signature Co -Lessee Signature Upon receipt of a completely filled -in original or facsimile of this Lease Extension, fully executed by Lessee and Co -Lessee, TOYOTA LEASE TRUST accepts this Lease Extension Agreement. Page 3 of 3 DMS 6055 (07/04) SUPPORTING DOCUMENTS r�'v. TA. CLOSED END MOTOR VEHICLE LEASE EXTENSION �. AGREEMENT 1. Parties Account Number 01-0277-BN424 Lease Extension Daft 04/05/06 Fli t ( SSerVIC@S LESSOR NAME AND ADDRESS LESSEE AND CO -LESSEE NAIVE AND VEHICLE GARAGING ADDRESS, IF DIFFERENT THAN-] LESSEE% RESIDENTIAUBILLING ADDRESS THE LESSEE'S BILLING ADDRESS TOYOTA LEASE TRUST CITY OF VERNON P.O. BOX 9490 CEDAR RAPIDS, IA 52409-9490 2. Description of Original Leased Vehicle 4305 SANTA FE AVE VERNON CA COUNTY. 2002 TOYOTA RAV4 EV 90058 Unless tti, :r " JT3GS10VX20002436 otherwise specified, you and your" refer to the Lessee and Co -Lessee and "we", "us" and. "out" refer to the Lessor. This Lease Extension Agreement ("Lease Extension") is an agreement to extend the term and modify specific provisions of the Original Lease Agreement ("Original Lease") dated 7/16/2002, between the Lessee and Co -Lessee set forth above and LONGO TOYOTA ("Originating Dealer"). By signing this Lease Extension, you, the Lessee and Co -Lessee, agree to continue to lease the original Leased Vehicle described In Section 2, above, under the terms set forth in the Original Lease, as well as the terms set forth In this Lease Extension. You agree that this Lease Extension constitutes 2, extension, at your request, of the Original Lease, and Is not a renegotiation of the Original Lease. The disclosures set forth in this Lease Extension are required extension, n made under Federal Law. Other disclosures required under Federal and State Law may be found in the Original Lease. is the case e s conflict between this Lease Extension and the Original Lease, the terms of this Lease Extension shall control. The Current Mileage on the Lease Vehicle is 3. Amount Due at Lease Extension Signing or Delivery (Itemized In Section 7 below) $0.00 (to be filled In by Lessee). 4. Monthly Payments Your first Monthly Payment during the Lease Extension Term of $561.30 is due on 7/16/2006, followed by 11 payments of $561.30 due on the 16th of each month. The total of your Monthly Payments during the Lease Extension Is $6,735.60. 5. Other Charges (not part of 6. Total of Payments your Monthly payment) During the Lease Disposition fee if Extension Term pos ( you do not (The amount you will Purchase the Vehicle) have paid by the end $ N/A of the Lease Extension) Total $ N/A $6,735.60 7. Amount Due at Lease Extension Signing or $0.00 8. How the Amount Due at Lease Extension Delivery Signing or Delivery will be paid: N/A 9a. Gross Capitalized Cost. The agreed upon value of the vehicle ($24,658.00) and any Items you pay over the Lease Extension Term (such as service contracts, insurance, and any outstanding prior credit or lease balance). For an Itemization of this amount, see Section 13. b. Capitalized Cost Reduction. The amount of any net $24,658.00 trade-in allowance, rebate, noncash credit, or cash you pay that reduces the Gross Capitalized Cost. - $0.00 c. Adjusted Capitalized Cost. The amount used In calculating your Base Monthly Payment. _ $24,658.00 d. Residual Value. The value of the Vehicle at the end of the Lease Extension used in calculating your Base Monthly Payment. - $20,423.44 s. osprealation and any Amortized Amounts. The amount charged for the Vehicle's decline in value through normal use and for other Items paid over the Lease Extension Term. _ $4,234.56 f. Total Rent Charge. The amount charged In addition to the Depredation and any Amortized Amounts. + $1,987.68 9. Total of Bass Monthly Payments. The Depreciation and any Amortized Amounts plus the Rent Charge. - $6,222.24 h. Lease Extension Term. The number of payments + 12 your Lease will be extended. I. Base Monthly Payment = $518.52 j. Monthly Sales/Use Tax + 42. 8 k. N/A 1. Total Monthly Payment ("Monthly Payment") + 0.00 _ $561.30 Early Termination. You may have to pay a substantial charge N you and this Lease early. The The actual charge will depend on when the Lease laterminated. The earlier y charge may be up to several thousand dollars. you and the Lease, the greater this charge is likely to be. 10. Excessive Wear and Use. You may be charged br excessive wear based on our standards for normal use and for mileage In excess of 15,000 miles per year for the total of the Original Lease Tenn plus the lease Extension Term, at the rate of $0.15 cents per mile. 11. Purchase Option at End of Lease Extension Term. You have an option to purchase the Vehicle at the end of the Lease Extension Term for $20,423.44. 12.Other Important Terms. See the remaining terms and conditions contained in this Lease Extension and any other Lease documents for additional information on early termination, purchase options and maintenance responsibilities, warranties, late and default charges, insurance and any security interest, if applicable. 1111111111111011111111 J 13. Itemization of Gross Capitalized Cost 16. Estimated Ofiiciad Fees and Taxes $513.36 You will pay for the following items over the Lease Extension Term as part This is an estimate of the total amount you will pay over the Lease of your monthly payment: Extension Term for official and license fees, registration, title, and taxes a. Agreed Upon Value of the Vehicle $24,658.00 (including personal property taxes), whether included In your Total Monthly b. Gross Capitalized Cost _ 58.00 Payment (Section 9.1), the Amount Due at Lease Extension Signing or Delivery (Section 7) or billed separately. The actual total of Official Fees 14. The total number of months this Lease is extended (the "Lease Extension and Taxes may be higher or lower depending upon the tax rate in effect or Term") is 12, and the Extended Maturity Date of this Lease Is 7/16/2007. the value of the vehicle at the time a fee or tax is assessed. This estimate Is based on your current address and may Increase If you move or if tax rates change You are Ibl f 15. Required Insurance You must provide the following Insurance during the Lease Extension Term with the Lessee and/or Co -Lessee as an insured driver. No other types of insurance are required: a. Primary automobile liability Insurance with minimum limits for bodily Injury or death of i) $15,000 for any one person, and ii) $30,000 for any one accident, and ill) $5,000 for property damage, and b. physical damage Insurance for the full value of the Vehicle, with a maximum deductible of $1,000. See Section 20 for additional information. 19. Vehicle Maintenance and Damage. You are responsible for all maintenance, repair, service, and operating expenses of the Vehicle. You agree to follow the owner's manual and maintenance schedule, and to provide us with written proof of such maintenance. You are responsible for all damage to the Vehicle (including but not limited to, damage to the engine) and for Its loss, seizure or theft. You must tell us immediately if any of these events happen, and cooperate with your insurance company. You must maintain the Vehicle in compliance with any legal selling requirements. 20. Required Insurance. We have the right to change the amounts of Required Insurance shown In Section 15, The limits we require may not be sufficient for your needs. See your Insurance provider for more information. You may purchase the required insurance coverage from an insurer of your choice, subject to our right to reject that Insurer for reasonable cause. The insurance policy must be acceptable to us, name Toyota Motor Credit Corporation or Lexus Financial Services as addltiw al insured and loss payee, and give us at least 10 days written notice before any cancellation or reduction in coverage. You authorize us to endorse your name(s) on any check or draft from your insurance company for any claim. You must provide us with written proof of this Insurance. NO INSURANCE COVERAGE FOR PHYSICAL DAMAGE TO THE LEASE VEHICLE, OR LOSS OF THE LEASED VEHICLE, IS PROVIDED UNDER THIS LEASE. 21. Charges for Late Payments. If we do not receive a full Monthly Payment within 10 days after it is due, you must pay the late payment and a late charge, if any, as disclosed in the Original Lease. 22. Early Termination By Us. We may terminate this Lease Extension at any time if you are in default (see your Original Lease) and you must pay us the amounts.set forth in Section 23, as well as all of our expenses for taking actions upon your default, as described in the Original Lease. Such expenses Include, but are not limited to, the reasonable costs Incurred In retaking, transporting, storing, preparing for disposition, and disposing of the vehicle, and collection and legal costs, as allowed by state law. In the case of a theft or total loss, or in the case that the Vehicle is not returned to us, you will owe the Adjusted Lease Balance (as defined in Section 24), less any insurance proceeds received. respons a or paying any Increases. See Section 27 for additional Information. 17.Optional Insurance and Other Products This Lease Extension does not include an extension of any Optional Insurance and Other Products such as Credit Life Insurance, Credit Disability Insurance, Guaranteed Auto Protection, Mechanical Breakdown Protection or Maintenance Agreement, which may have been included in the Original Lease Agreement. 18. Charges Due Under the Original Lease All unpaid charges due under the Original Lease shall become part of this Lease Extension. You understand that these charges may not be reflected In the Base Monthly Payment In this Lease Extension, but may be owed at the end of the Lease Extension Term. 23. Early Termination by You. If you are not in default, you may terminate this Lease Extension at any time if you return the Vehicle to us, at a location we specify, and pay us, upon demand, the following amounts: a. any Monthly payments or other amounts which have become due under this Lease Extension or the Original Lease, including charges for Excessive Wear and Use and excess mileage (Sections 10 and 26); plus b. any official fees or taxes charged in connection with the Lease Extension termination; minus c. any remaining Refundable Security Deposit disclosed in the Original Lease. 24. Your Option to Purchase Vehicle. You may purchase the Vehicle at any time during the Lease Extension Term or at the Extended Maturity Date (unless a goverment agency has seized the Vehicle and Instructed us not to release the Vehicle to you). The price to purchase the Vehicle at the Extended Maturity Date Is the Purchase Option Price shown in Section 11, plus 24a, 24b and 24c below. The price to purchase the Vehicle during the Lease Extension Term Is: a. any Monthly Payments or other amounts due under this Lease Extension, except charges for Excessive Wear and Use and excess mileage (sections 10 and 26); plus b. any official fees and taxes, or documentary fees charged in connection with the purchase; plus c. any amounts necessary to meet any legal selling requirements; plus d. the Adjusted Lease Balance which Is calculated as follows: add together the Depreciation Portion of the Monthly Payments which would become due after the date you wish to purchase the Vehicle, plus the Residual Value. To determine the Depreciation Portion of the Monthly Payment, divide the "Depredation and any Amortized Amounts" (Section 9.e) by the "Lease Extension Term" (Section 9.h). 25.Obligations If You Do Not Purchase the Vehicle at the Scheduled Extended Maturity Date. At the Extended Maturity Date, you must return the Vehicle to us at the location we specify, and pay us, upon demand, the following amounts: a. any Monthly Payments or other amounts due under this Lease Extension; plus b. any official fees or taxes charged in connection with the Lease termination; plus c. any Excessive Wear and Use charges disclosed in Section 26; plus d. any excess mileage charge disclosed in Section 10. You will not receive a refund if you do not use all of the mileage set forth in Section 10. 26. Excessive Wear and Use Charges. At the Scheduled Extended Maturity Date, if you do not purchase the Vehicle, you must pay us the estimated cost to repair damage to the Vehicle which is excessive wear and use. Excessive wear and use includes, but Is not limited to: a. inoperative mechanical and electrical parts; b. damage (including but not limited to, damage to the engine) due to your failure to maintain the Vehicle in accordance with Section 19: c. damage to the body, lights, trim or paint; d. damaged, broken or tinted glass; e. torn, damaged or stained interior; f. damage from flood, water, hail or sand; g. damage from removal of equipment or signs placed on the Vehicle; h, missing equipment, parts and accessories, including missing keys or remote entry devices; or I. tires with less than 3/32 inch of tread remaining, or any fire not part of a matching set of 5 tires (or 4 with an emergency spare If the Vehicle was originally equipped with one). 27.Offlcial Fees, Taxes and Fines. You must prompfly pay all official fees and taxes related to this Vehicle and this Lease Extension Agreement, Including title, license and registration fees, and sales, use, excise and Personal property taxes. You must promptly pay any fines incurred on the Vehicle such as trafRc or parking tickets. Some bills for official fees and taxes may be sent to you for payment. Other bills may be paid by us on your behalf and we will charge you the amount paid. You must pay all fees Incurred during the Lease Extension Term, even if they are assessed and billed after this Lease Extension has ended. We may charge you an estimated amount for the remaining fees and taxes at the time this Lease Extension ends. You are responsible for any shortage in this estimate, and we will refund you any excess. We are not obligated to apply for any refund or abatement of official fees and taxes, Including personal property taxes. If you make a written request that we apply for refund of an official fee or tax that you paid to us, to which you are entitled, we v+All file an application for refund. We will send any refund we receive, less any amounts due under this Lease Extension or the Original Lease, to you. We may pay any titre, registration, license fee, tax or fine which you fail to pay, and charge you the amount paid. You are responsible for any fines or penalties If you fall to pay the bill when due. By signing below, you acknowledge that (1) You have read this entire Lease Extension Agreement, including all three pages; (2) You agree to all of the provisions of this Lease Extension Agreement, as WON as to the provisions of the Original Lease Agreement; (3) You have received a completely filled -in copy of this Lease Extension Agreement; (4) This is an extension of the Original Lease Agreement, and not a new or renegotiated lease; (5) The current Mileage set forth In Section 2 Is accurate; (6) You acknowledge that a facsimile transmission of this document stored by Lessor in electronic or paper form shall constitute an original for all purposes under this Agreement; (7) You acknowledge that all parties to this Lease Extension and the Original Lease may sign different copies of this Lease Extension and each copy will be valid and enforceable against the signer(s) and all of the copies, together, will constitute one and the wane Agreement. CITY OF VERNON Lessee Signature Co -Lessee Signature L onis C. MalIkurg, Rayor Upon receipt of a completely filled -In original or facsimile of this Lease Extension, fully executed by Lessee and Co -Lessee, TOYOTA LEASE TRUST accepts this Lease Extension Agreement. ATTEST: By: Bruc V Malkenhorst, 11r. Acting City Clerk APPROVED AS TO FORM: Eric T. sch, City torney �% • • FINANCIAL SERVICES 1. Parties CLOSED END MOTOR VEHICLE LEASE EXTENSION AGREEMENT Account Number 01-0277-BN425 Lease Extension Date 04/05/06 (Z)tMXL1e Financial Services LESSOR NAME AND ADDRESS LESSEE AND CO -LESSEE NAME AND VEHI= GARAGING ADDRESS, IF DIFFERENT THAN LESSEE'S RESIDENTIALIBILLING ADDRESS THE LESSEE'S BILLING ADDRESS TOYOTA LEASE TRUST CITY OF VERNON P.O. BOX 9490 4305 S SANTA FE AVE CEDAR RAPIDS, IA 52409-9490 VERNON CA W068-1714 COUNTY: I COUNTY: 2. Description of Original Leased Vehicle 1 2002 1 TOYOTA I RAW EV I JT3GS10V120002437 Unless otherwise specified, "you" and "your" refer to the Lessee and Co -Lessee and "we", "us" and "our" refer to the Lessor. This Lease Extension Agreement ("Lease Extension") is an agreement to extend the term and modify specific provisions of the Original Lease Agreement ("Original Lease") dated 7/16/2002, between the Lessee and Co -Lessee set forth above and LONGO TOYOTA ("Originating Dealer"). By signing this Lease Extension, you, the Lessee and Co -Lessee, agree to continue to lease the original Leased Vehicle described in Section 2, above, under the terms set forth in the Original Lease, as well as the terms set forth in this Lease Extension. You agree that this Lease Extension constitutes an extension, at your request, of the Original Lease, and is not a renegotiation of the Original Lease. The disclosures set forth in this Lease Extension are required to be made under Federal Law. Other disclosures required under Federal and State Law may be found in the Original Lease. In the case of a conflict between this Lease Extension and the Original Lease, the terms of this Lease Extension shall control. The Current Mileage on the Lease Vehicle is (to be filled in by Lessee). 3. Amount Due at Lease 4. Monthly payments 5. Other Charges (not part of 6. Total of Payments Extension Signing or Delivery Your first Monthly Payment during the Lease your Monthly Payment) During the Lease Extension Term of $561.30 Is due on Disposition fee (if you do not Extension Term (The amount you will (Itemized in Section 7 below) 7/16/2006, followed by 11 payments of purchase the Vehicle) have paid by the end $0.00 $561.30 due on the 16th of each month. The $ N/A of the Lease Extension) total of your Monthly Payments during the Total $ N/A $6,735.60 Lease Extension is $6,735.60. 7. Amount Due at Lease Extension Signing or $0.00 8. How the Amount Due at Lease Extension Delivery Signing or Delivery will be paid: N/A la. Gross Capitalized Cost. The agreed upon value of the vehicle ($24,658.00) and any Items you pay over the Lease Extension Term (such as service contracts, insurance, and any outstanding prior credit or lease balance). For an itemization of this amount, see Section 13. b. Capitalized Cost Reduction. The amount of any net $24,658.00 trade-in allowance, rebate, noncash credit, or cash you pay that reduces the Gross Capitalized Cost. $0.00 c. Adjusted Capitalized Cost. The amount used in calculating your Base Monthly Payment. _ $24,658.00 d. Residual Value. The value of the Vehicle at the end of the Lease Extension used in calculating your Base Monthly Payment. - $20,423.44 e. Depreciation and any Amortized Amounts. The amount charged for the Vehicle's decline in value through normal use and for other items paid over the -. Lease Extenslon.Term. _ $4,234.56 f. Total Rent Charge. The amount charged in addition to the Depredation and any Amortized Amounts. + $1,987.68 g. Total of Base Monthly Payments. The Depreciation = $6,222.24 and any Amortized Amounts plus the Rent Charge. h. Lease Extension Tenn. The number of payments + 12 your lease will be extended. L Base Monthly Payment = $518.52 J. Monthly Sales/Use Tax + 42.78 k. N/A + $0.00 I. Total Monthly Payment ("Monthly Payment") = $561.30 Early Termination. You may have to pay a substantial charge If you end this Lease early, The charge may be up to several thousand dollars. The actual charge will depend on when the Lease Is terminated. The earlier you end the Lease, the greater this charge is likely to be. 1 v. =A%,u*aivv wear and use. Tou may oe cnargeo for excessive wear based on our standards for normal use and for mileage in excess of 15,000 miles per year for the total of the Original Lease Term plus the Lease Extension Term, at the rate of $0.15 cents per mile. 11. Purchase Option at End of Lease Extension Tenn. You have an option to purchase the Vehicle at the and of the Lease Extension Term for $20,423.44. 12.Other Important Terms. See the remaining terms and conditions contained In this Lease Extension and any other Lease documents for additional information on early termination, purchase options and maintenance responsibilities, warranties, late and default charges, insurance and any security interest, If applicable. Iillii III IIIii {IN INlIIII NII 111 INI 13. Itemization of Gross Capitalized Cost You will pay for the following Items over the Lease Extension Term as part of your monthly payment: a. Agreed Upon Value of the Vehicle $24,658.00 b. Gross Capitalized Cost _ 14. The total number of months this Lease is extended (the "Lease Extension Term") is 12, and the Extended Maturity Date of this Lease is 7/1612007, 15. Required Insurance You must provide the following Insurance during the Lease Extension Term with the Lessee and/or Co -Lessee as an Insured driver. No other types of Insurance are required: a. Primary automobile liability insurance with minimum limits for bodily injury or death of 1) $15,000 for any one person, and 11) $30,000 for any one accident, and 111) $5,000 for property damage, and b. physical damage insurance for the full value of die Vehicle, with a maximum deductible of $1,000. See Section 20 for additional information. 16. Estimated Official Fees and Taxes $513.36 This Is an estimate of the total amount you will pay over�e Cease Extension Term for otiidal and license fees, registration, title, and taxes (including personal property taxes), whether included in your Total Monthly Payment (Section 9.1), the Amount Due at Lease Extension Signing or Delivery (Section 7) or billed separately. The actual total of Official Fees and Taxes may be higher or lower depending upon the tax rate In effect or the value of the vehicle at the time a fee or tax Is assessed. This estimate Is based on your current address and may Increase If you move or if tax.rates change. You are responsible for paying any Increases. See Section 27 for additional information. 17. Optional Insurance and Other Products This Lease Extension does not include an extension of any Optional Insurance and Other Products such as Credit Life Insurance, Credit Disability Insurance, Guaranteed Auto Protection, Mechanical Breakdown Protection or Maintenance Agreement, which may have been included in the Original Lease Agreement. 18. Charges Due Under the Original Lease All unpaid charges due under the Original Lease shall become part of this Lease Extension. You understand that these charges may not be reflected In the Base Monthly Payment in this Lease Extension, but may be owed at the and of the Lease Extension Term. 19. Vehicle Maintenance and Damage. You are responsible for all 23. Early Termination by You. If you are not in default, you may terminate maintenance, repair, service, and operating expenses of the Vehicle. You this Lease Extension at any time If you return the Vehicle to us, at a agree to follow the owner's manual and maintenance schedule, and to location we specify, and pay us, upon demand, the following amounts: provide us with written proof of such maintenance. You are responsible for a. any Monthly payments or other amounts which have become due all damage to the Vehicle (including but not limited to, damage to the under this Lease Extension or the Original Lease, including charges engine) and for its loss, seizure or theft. You must tell us Immediately if any for Excessive Wear and Use and excess mileage (Sections 10 and of these events happen, and cooperate with your insurance company. You 26); plus must maintain the Vehicle in compliance with any legal selling b. any official fees or taxes charged in connection with the Lease requirements. Extension termination; minus c any remaining Refund bl S ri 20. Required Insurance. We have the right to change the amounts of Required Insurance shown in Section 15. The limits we require may not be sufficient for your needs. See your insurance provider for more Information. You may purchase the required Insurance coverage from an Insurer of your choice, subject to our right to reject that insurer for reasonable cause. The insurance policy must be acceptable to us, name Toyota Motor Credit Corporation or Lexus Financial Services as additional Insured and loss payee, and give us at least 10 days written notice before any cancellation or reduction in coverage. You authorize us to endorse your name(s) on any check or draft from your Insurance company for any claim. You must provide us with written proof of this insurance. NO INSURANCE COVERAGE FOR PHYSICAL DAMAGE TO THE LEASE VEHICLE, OR LOSS OF THE LEASED VEHICLE, IS PROVIDED UNDER THiS LEASE. 21. Charges for Late Payments. If we do not receive a full Monthly Payment within 10 days after it Is due, you must pay the late payment and a late charge, If any, as disclosed in the Original Lease. 22. Early Termination By Us. We may terminate this Lease Extension at any time if you are in default (see your Original Lease) and you must pay us the amounts set forth in Section 23, as well as all of our expenses for taking actions upon your default, as described In the Original Lease. Such expenses include, but are not limited to, the reasonable costs incurred in retaking, transporting, storing, preparing for disposition, and disposing of the vehicle, and collection and legal costs, as allowed by state law. In the case of a theft or total loss, or in the case that the Vehicle Is not returned to us, you will owe the Adjusted Lease Balance (as defined In Section 24), less any insurance proceeds received. • a Lease. e etas ty Deposit disclosed in the Original 24. Your Option to Purchase Vehicle. You may purchase the Vehicle at any time during the Lease Extension Term or at the Extended Maturity Date (unless a government agency has seized the Vehicle and instructed us not to release the Vehicle to you). The price to purchase the Vehicle at the Extended Maturity Date is the Purchase Option Price shown in Section 11, plus 24a, 24b and 24c below. The price to purchase the Vehicle during the Lease Extension Term Is: a. any Monthly Payments or other amounts due under this Lease Extension; except charges for Excessive Wear and Use and excess mileage (sections 10 and 26); plus b. any official fees and taxes, or documentary fees charged in connection with the purchase; plus c. any amounts necessary to meet any legal selling requirements; plus d. the Adjusted Lease Balance which is calculated as follows: add together the Depredation Portion of the Monthly Payments which would become due after the date you wish to purchase the Vehicle, plus the Residual Value. To determine the Depreciation Portion of the Monthly Payment, divide the "Depredation and any Amortized Amounts" (Section 9.e) by the "Lease Extension Term" (Section 9.h). 25. Obligations if You Do Not Purchase the Vehicle at the Scheduled Extended Maturity Date. At the Extended Maturity Date, you must return the Vehicle to us at the location we specify, and pay us, upon demand, the following amounts: a. any Monthly Payments or other amounts due under this Lease Extension; plus b. any official fees or taxes charged in connection with the Lease termination; plus c. any Excessive Wear and Use charges disclosed in Section 20; plus d. any excess mileage charge disclosed in Section 10. You will not receive a refund if you do not use all of the mileage set forth In Section 10. 26. Excessive Wear and Use Charges. At the Scheduled Extended Maturity Date, if you do not purchase the Vehicle, you must pay us the estimated cost to repair damage to the Vehicle which Is excessive wear and use. Excessive wear and use includes, but is not limited to: a. inoperative mechanical and electrical parts; b. damage (including but not limited to, damage to the engine) due to your failure to maintain the Vehicle In accordance with Section 19; c. damage to the body, lights, trim or paint; d. damaged, broken or tinted glass; e. torn, damaged or stained Interior, f. damage from flood, water, hail or sand; g. damage from removal of equipment or signs placed on the Vehicle; h. missing equipment, parts and accessories, including missing keys or remote entry devices; or I. tires with less than 3/32 Inch of tread remaining, or any tire not part of a matching set of 5 tires (or 4 with an emergency spare If the Vehicle was originally equipped with one). 27. Official Fees, Taxes and Fines. You must promptly pay all official fees and taxes related to this Vehicle and this Lease Extension Agreement, including title, license and registration fees, and sales, use, excise and personal property taxes. You must promptly pay any fines incurred on the Vehicle such as traffic or parking tickets. Some bills for official fees and taxes may be sent to you for payment. Other bills may be paid by us on your behalf and we will charge you the amount paid. You must pay all fees Incurred during the Lease Extension Term, even If they are assessed and billed after this Lease Extension has ended. We may charge you an estimated amount for the remaining fees and taxes at the time this Lease Extension ends. You are responsible for any shortage in this estimate, and we will refund you any excess. We are not obligated to apply for any refund or abatement of official fees and taxes, including personal property taxes. If you make a written request that we apply for refund of an official fee or tax that you paid to us, to which you are entitled, we will file an application for refund. We will send any refund we receive, less any amounts due under this Lease Extension or the Original Lease, to you. We may pay any Otte, registration, license fee, tax or fine which you fail to pay, and charge you the amount paid. You are responsible for any fines or penalties if you fail to pay the bill when due. By signing below, you acknowledge that (1) You haw read this entire Lean Extension Agreement, including all three pages; (2) You agree to all of the provisions of this Lease Extension Agreement, as well as to the provisions of the Original Law Agreement; (3) You have received a completely filled -in copy of this Lease Extension Agreement; (4) This Is an extension of the Original Lease Agreement, and not a new or renegotiated lease; (5) The current Mileage set forth in Section 2 is accurate; (d) You acknowledge that a facsknile transmission of this document stored by Lessor in electronic or paper form shall constitute an original for all purposes under this Agreement; (7) You acknowledge that all parties to this Lease Extension and the Original Lease may sign dMferent copies of this Lease Extension and each copy will be valid and enforceable against the signer(s) and all of the copies, together, will constitute one and the same Agreement. CITY OF VERNON Lessee Signature Co -Lessee Signature Leonis C. Mal urg, M yor Upon receipt of a completely filled -in original or facsimile of this Lease Extension, fully executed by Lessee and Co -Lessee, TOYOTA LEASE TRUST accepts this Lease Extension Agreement. ATTEST: By: 1� Br ce V. Malkenhorst, Jr. Act ity Clerk APPROVED AS le Eric T. Fresc , City Attorney