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HomeMy WebLinkAbout19970 RES - 09/15/1987A RESOLUTION AUTHORIZING THE LEASE/PURCHASE OF THE CITY'S COMPUTER OPERATING SOFTWARE BY UTILIZING A SPECIAL IBM FINANCING TERM FOR A TOTAL COST OF $808,850 OVER A FIVE YEAR PERIOD. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager is hereby authorized to convert the present leasing agreement for IBM operating software so as to purchase the City's computer operating software by utilizing a five-year lease/purchase with IBM and/or Boole & Babbage, Inc. with special financing term at 7.09 percent for $808,850 and a one-time charge of $24,650. Said agreement to be in substantially the form License Agreement attached hereto as Exhibit A and made a part hereof. ATTEST: City Secretary MAY APPROVED: /7/r1 DAY OF 44441, 19 t% HAL GEORGE, CITY ATTORNEY By A itV y At of rney O8P.O14.O1 THE CITY OF CORPUS CHRISTI, TEXAS 19970 MICROFILMED BOOLE & BABBAWE, INC. LICENSE AGREEMENT This License Agreement between Boole & Babbage, Inc. (Licensor), a California corporation, and the Licensee identified below consists of Paragraph A below and Licensor's General Terms and Conditions Reference Number: CCC985 which are incorporated by this reference. This proposal is effective until August 31 1987 Paragraph A—Parties and Product(s) 1. In accordance with the provisions of this Agreement, Licensor will provide Licensee with the Product(s) listed below, as specified in Licensors current Product documentation, for use by Licensee only in its computing facilities at the following site: 1015 Santa Fe Street Corpus Christi Street Address City 2. The Product(s) to be provided are: Designated Operating License System Term Product(s) CPU(s) Texas State 78404 Zip Code Pay. ment License Maintenance Term Fee Charge & Period (aTESOLVE PLUS 1 CPU MVS/XA Perpetual Lump Sum $24,000. (b)T,ess Credit for RESOLVE MVS/370 License ($19,000.) (cFMF MONITOR 1 CPU MVS/XA Perpetual (d)Less Credit for CMF MONITOR MVS/370 License (e) (f) (9) (h) Serial # Lump Sum $21,600. ($16,000.) Total Fees' $10,600. (exclusive of applicable taxes). 3. LICENSOR CANNOT AND DOES NOT WARRANT THAT ANY OF ITS SECURITY PRODUCTS WILL PREVENT ALL UNAUTHORIZED ACCESS TO LICENSEE'S COMPUTER SYSTEM, DATA OR PROGRAMS. 4. LICENSEE AGREES TO LIMIT THE USE OF CAPACITY MANAGEMENT FACILITY (CMF) TO THE CONTROL, EVALUATION, AND PLANNING OF COMPUTER APPLICATIONS AND COMPUTER CONFIGURATIONS PLANNED OR OPERATIONAL TO THOSE OF THE LICENSEE. ACCEPTED BY LICENSEE: Company Name' Company Address: : - -- AllrANIIMMFIAV 14D Signature: Name: Title: Cit • Manager Date: August 31, 1987 Craig ell ACCEPTED BY BOOLE & BABBAGE, INC. Boole & Babbage, Inc. 516.Oakmead Parkway Sunnyvale, California 94086 gnature• Name' Title Date' CT -0001 BOOLE & BABBAGE, INC. LICENSE AGREEMENT This License Agreement between Boole & Babbage, Inc. (Licensor), a California corporation, and the Licensee identified below consists of Paragraph A below and Licensor's General Terms and Conditions Reference Number: CCC985 , which are incorporated by this reference. This proposal is effective until Avg„at 21 , 1987 Paragraph A—Parties and Product(s) 1. In accordance with the provisions of this Agreement, Licensor will provide Licensee with the Product(s) listed below, as specified in Licensors current Product documentation, for use by Licensee only in its computing facilities at the following site: 1015 Santa Fe Street Corpus Christi Texas 78404 Street Address City State Zip Code 2. The Product(s) to be provided are: Pay - Designated Operating License ment License Maintenance Product(s) CPU(s) System Term Term Fee Charge & Period (a)CICS MANAGER 1 CPU MVS/XA Perpetual Lump Sum $16,500. 1st Year Included (b) Serial # (0) (d) Less RESOLVE CICS Trade in Credit ($ 5,600.) (e) (() (9) (h) Total Fees: $10,900. (exclusive of applicable taxes). 3. LICENSOR CANNOT AND DOES NOT WARRANT THAT ANY OF ITS SECURITY PRODUCTS WILL PREVENT ALL UNAUTHORIZED ACCESS TO LICENSEES COMPUTER SYSTEM, DATA OR PROGRAMS. 4. LICENSEE AGREES TO LIMIT THE USE OF CAPACITY MANAGEMENT FACILITY (CMF) TO THE CONTROL, EVALUATION, AND PLANNING OF COMPUTER APPLICATIONS AND COMPUTER CONFIGURATIONS PLANNED OR OPERATIONAL TO THOSE OF THE LICENSEE. ACCEPTED BY LICENSEE: Company Name. r; ty of r,,, -/-„a rt„-; . t; Company Address' /.Y.-S'it3.Zt Signature: � � •ignature• Name: CraMcDowell Name: Afir , Title: City Manager Title: Date: August 15, 1987 Date' ACCEPTED BY BOOLE & BABBAGE, INC. Boole & Babbage, Inc. 510 Qakmead Parkway Sunnyvale, California 94086 CT -0001 Customer Name and Address: IBM Branch OfliceAddress: City of Corpus Christi 802 N Carancahua Customer 2205004Data Processing Dept. Referenced License Agreement No.: B05084/58250Corpus Christi, TX 78470 IBM Branch Off 1015 Santa Fe ice No : ND4 Referenced Term Lease Supplement No: Financing Agreement No.: ND41147 Referenced IBM Installment Corpus Christi, TX 78404 Payment Agreement No : IBM Credit Corporation, acting for or as Lender (Lender), and Customer enter into this Financing Agreement (Agreement) wherein a) Lender agrees to finance the char n agrees to pay Lender the Penedic Payment(s) indicated for each Payment Period. Financing will be for a) charges payabld to the International Business Machines Corporation (IBM) which mCustomer ay Include charges for licensed program malenal (LPM Charges) for licensed programs marketed by IBM under the referenced license agreement (License Agreement) or b) other charges npayable by) Customer which Lender may choose to finance. Each Financing will begin on the Commencement Date and shall continue for the number of Payment Periods Indicated as Term. Periodic Payments will be due on the first day of the month following the last day of each Payment Period. When the Commencement Date is not on the first day of a calendar month and,or the Term does not expire on the last day of a calendar month, the applicable Periodic Payment will be prorated on the basis o130 -day months. Customer No. Machine or Licensed Customer/ Program Materials Plant Order Rale Lender OW. Type Model/Feature DescriptionOr Serial Amount S/1000/ Payment - c PMes No. No Financed Pmt. Period Pen o' CommencementDate FINANCING AGREEMENT (State and Local Government) Date Prepared 7/27/87 Page lof 1 U) 1 5665 317 ISPF/PD 2205004 F 5022420 1 5665 319ISPF 48623 20,700.00 19.84 $ 411.00 1 5668958 COBOL II 48624 7,845.00 19.84 156.00 1 5665 329 COBOL 76092 50,927.75 19.84 1010.00 DFHSM 1 5740 XX1CICS V1.7 42168 30,720.00 19.84 609.00 1 5665327 DFDSS 94761 74,550.00 19.84 1479.00 1 5668 949 SMPSS 81617 7,740.00 19.84 154.00 49754 16,965.00 19.84 337.00 60 S' 60 S' 60 9' 60 S' 60 S' 60 S' 60 S' Annual Interest Total Payment Penod Bid Date Rate (all pages) (Monthly unless noted) mwwvayyear Fiscal Year Ends 07/31 7, 090 mon@/day $4156.00 CUSTOMER ACKNOWLEDGES THAT CUSTOMER HAS READ AND UNDERSTANDS THIS AGREEMENT, INCLUDING THE TERMS AND CONDITIONS LISTED ON THE REVERSE SIDE, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. FURTHER, CUSTOMER AGREES THAT THIS AGREEMENT IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PAR- TIES, SUPERSEDING ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF. Accepted by: IBM Credit Corporation For or as Lender: By: Authorized Signature Name (Type'or Pnnt) " --' - 7125.3976-00 (11440.25) Rev 5,87 (Continuation Shee121a5.39i,) Dale By: honied Signature Craig A. owell 9/15/87 Name (Type or Pr, •� Date 6 • /�9 7 AUT(O(I E.I sY C9uNcIL 9— -Y" ,GRE IARY . 1. FINANCING OF LICENSED PROGRAM MATERIAL CHARGES (LPM CHARGES). The Commencement Date, unless otherwise specified herein, will be the date payment of the LPM Charges is due IBM under the License Agreement and Lender • will pay such charges directly to IBM. Any other charges due IBM under the License Agreement shall be paid directly to IBM by Customer. Customer's obligation to make pay- ments under this Agreement shall not be affected by any discontinuance, return or de- struction of any license or licensed program materials under the License Agreement on or after the date LPM Charges are due. If Customer discontinues any of the licensed pro- gram materials in accordance with terms of the License Agreement prior to the date LPM Charges are due, the Financing of affected LPM Charges shall be cancelled. If Customer prepays Financing for related IBM equipment under a referenced IBM Installment Pay- ment Agreement or terminates a lease for related IBM equipment under a referenced Term Lease Supplement, Lender may require prepayment of Financing for related LPM Charges under this Agreement. 2. FINANCING PREPAYMENT. Upon Customer notice of intent to prepay a remaining obligation, Lender will provide a quote to Customer for prepayment at a date, which shall be no earlier than 30 days after Lender's receipt of Customer notice, and such quote will be an amount, which shall be less than the sum of the remaining payments. Customer can terminate the obligation by paying the amount quoted on the date specified. 3. CHANGES. Any change in the charges, Commencement Date or other details of the Financing may be cause for Lender 10 adjust the rates and terms of this Financing by written notice to Customer. Upon such adjustment, by notice to Lender prior to the Commencement Date, Customer may terminate the Financing for the affected item. 4. RATE PROTECTION. Unless modified pursuant to Paragraph 3, the Periodic Pay- ment shall be based on the Rate indicated or such greater Rate as may be specified by written notice to Customer more than three months before the Commencement Dale. By notice to Lender prior to the Commencement Date, Customer may terminate the Financ- ing for such affected item. Otherwise the Periodic Payment shall be adjusted to reflect the increase. 5. SELECTION AND USE OF PRODUCTS ORSERVICES. Customer recognizes LICENSED hat PROGRAM this its a finnanccing agreement and agrees that Customer is responsible for the selection, use of, and results obtained from the equipment, licensed jgrogram materials, products or services financed through this Agreement and any othgger associated equipment, programs or services. If the equipment, factoryfor any reascensedon, Customer ram materials, hall make any claim financed olely against ts or the supplier hervices are unsatis- factory eof and shall, nevertheless, pay Lender all amounts payable under this Agreement. 6. GENERAL. Other than Lender's obligation 10 pay the LPM Charges or other amounts financed, as specified in this Agreement, responsibilities and limitations applica- ble to Customer as defined in any referenced IBM agreement shall apply to Customer. If the the LPM Charges will be the M licensed ame mountram tthatls are would havebeen payable ct to a scount a to IBM by offering, ustomer, and (b) Customer will remain responsible to IBM for any adjustment charges or any other charges incurred under the discount offering. LPM Charges are subject to change in ac- cordance with the License Agreement. 7. CUSTOMER ASSIGNMENTS. This Agreement is not assignable by Customer. Any attempted assignment or transfer by Customer of any of the rights, duties or obligations under the Agreement is void. 8. EVENTS OF DEFAULT. Any one or more of the following are Events of Default: (a) Customer fails to make any payment to Lender when due and such failure shall continue for a period of seven days alter the due date; (b) Customer fails to perform any other obli- gations under this Agreement or violates any of the representations, covenants or agree- ments made by Customer in this Agreement or any other lease or financing agreement with IBM or IBM Credit Corporation and such failure or breach shall continue for a period 0115 days alter written notice from Lender; or (c) Customer violates any of the representa- tions made by Customer in any application for credit or submits inaccurate financial infor- mation for the purpose of inducing Lender to enter into this Agreement. Any failure of La- der to require strict performance by Customer or any waiver by Lender of any pro, of this Agreement shall not be construed as a consent or waiver of any other bre, the same or any other provision. 9. REMEDIES. II an Event of Default shall have occurred and be continuing, Lender or assigns may, to the extent permitted by law, (a) declare this Agreement to be in default and all payments due and to become due to be immediately due and payable; (b) declare any other lease or financing agreements with Lender or with IBM Credit Corporation to be in default and declare all payments due and to become due thereunder to be im- mediately due and payable; (c) recover from Customer any and all such amounts due under this Agreement and any other lease or financing agreement declared to be in de- fault; and (d) recover reasonable attorney's lees and legal expenses in exercising any of Its rights and remedies upon default. Upon request of Lender, Customer agrees to surren- der to Lender for return to licensor all licensed program materials for which Lender has financed the charges, and to destroy any and all copies thereof. Customer hereby au- thorizes Lender to request that licensor terminate the license for those programs for which the financing is in default. Customer acknowledges that such termination and surrender will not reduce the economic damages sustained by Lender as a result of default by Cus- tomer, and that such damages can be recompensed only by recovery of amounts due and to become due under the relevant agreement. Lender may pursue any other remedy avail- able at law or in equity, including, but not limited to, seeking damages, specific perfor- mance and an injunction. No right or remedy is exclusive of any other provided herein or permitted by law or equity. All such rights and remedies shall be cumulative and may be enforced concurrently or individually from time to lime. 10. FULL TERM INTENTION; APPROPRIATION OF FUNDS. Customer represents it is a state or political subdivision of a state and warrants receipt of any necessary authori- zation to sign and comply with this Agreement. Customer intends to pay all Periodic Pay- ments and, if needed, to request appropriation of funds. If Customer's request for funds for any item of Financing is denied, Customer's obligation to make the remainder of Inc Periodic Payments will end with the availability of funds but only so long as Customer (a) does not substitute similar financing; (b) does not substitute products or services function- ally similar 10 those for which Financing was provided; and (c) has not discriminated against Lender's, Financing. If funds are not appropriated for Financing for IBM LPM charges, upon request of Lender, Customer agrees to surrender to Lender for return to licensor all licensed program materials for which Lender has financed the charges, and will destroy any and all copies thereof. Customer hereby authorizes Lender to request that licensor terminate the license for those programs. 11. REPORTING REQUIREMENTS. Customer agrees to fully and timely comply with all information reporting requirements under the Internal Revenue Code of 1956 (Code) Section 149 to ensure Lender's interest income from this transaction shall be exempt from federal income tax pursuant to Code Section 103. 12. NOTICES; ADMINISTRATION. Service of all notices under This Agreement shall be sufficient if delivered personally or mailed to Customer at its address specified or to Lender in care of the IBM Branch Office specified. Notice by mail shall be effective when deposited in the United States mail, duly addressed and with postage prepaid. Notices, consents and approvals from Lender shall be given by Lender directly or through IBM. All payments To Lender shall be made to IBM unless Lender notifies Customer otherwise. 13. APPLICABLE LAW; SEVERABILITY. This Agreement shall be governed by Cus- tomer's state laws. If any provision shall be held to be invalid or unenforceable, the validity and enforceability of the remaining provisions shall not in any way be affected or impaired. Gr-ou.f/J Customer Name and Address: IBM Branch Office Address: City of Corpus Christi 802 N Carancahua Data Processing Dept. Corpus Christi, TX 78470 IBM Branch 2205004 Referenced License Agreement No.: B05084/58250 Custo1015 Santa Fe ND4 Referenced Term Lease Supplement No.: Corpus Christi, TX 78404 Financing Agreement No.: ND41146 Referenced IBM Installment Payment Agreement No.: IBM Credit Corporation, acting fore/ as Lender (Lender), and Customer enter into This Financing Agreement (Agreement) wherein a) Lender agrees to finance the charges listed (Financing) and b) Customer agrees to pay Lender the Penodic Payment(s) indicated for each Payment Period Financing will be for a) charges payable.lo the International Business Machines Corporation (IBM) which may Include charges for licensed program material (LPM Charges) for licensed programs marketed by IBM under the referenced license agreement (License Agreement) or b) other charges payable by Customer which Lender may choose to finance Each Financing will begin on the Commencement Date and shall continue for the number of Payment Periods mdlcated as Term. Periodic Payments will be due on the first day of the month following the last day ()leach Payment Period. When the Commencement Dale is not on the first day of a calendar month and/or the Term does not expire on the last day of a calendar month, the applicable Periodic Payment will be prorated on the bases of 30 -day months. Customer No. Machine or Licensed Customer/ Program Materials Plant Order Rate d Lender Oty. Type Model/Feature Or Serial Amount $/1000/ o Description Mes No. No. Financed Pmt Penotl Payment ~ o Commencement 2205004 1 5665 XA2 MVS/XA DFP 5022420 1 5665 274 RMF Ver. 3 67GSZW 36,900.00 19.84 $ 732.00 60 S' 1 5665 285 TSO Ext. 67GSZX 29,250.00 19.84 580.00 60 S' 1 5665 289 ACF/VTAM 67GSZY 21,480.00 19.84 426.00 60 S' 1 5665 362, NETVIEW 67GSZZ 81,315.00 19.84 1613.00 60 S' 1 5665 370 MVS/DITTO 67GTBC 51,204.00 19.84 1016.00 60 S' 1 5668 962 ASSEMBLER 67GTBD 11,016.00 19.84 219.00 60 S' 1 5740 XC6 MVS/SP 67GTBC 6,045.00 19.84 120.00 60 S' 1 5665 279 BASIC 67PRGG 187,785.00 19.84 3726.00 60 S' 1 5665 488 SYS DISP 68YKSC 45,950.00 19.84 118.00 60 S' 1 ,'5785 BAC JES 68YKYS 16,800.00 19.84 333.00 60 S' 69PMYX 1 5734 PL3 PL/1 69PMYW 16,2235.00 19.84 32250.00 19.84 2.00 60 S' FINANCING AGREEMENT (State and Local Government) DatePrepared 7/27/87 Page tol 1 Annual Interest Total Payment Period Bld Dale Rale (all pages) (Monthly unless noted) meewdow. Fiscal Year Ends 07 / 31 7.09 $9325. CUSTOMER ACKNOWLEDGES THAT CUSTOMER HAS READ AND UNDERSTANDS THIS AGREEMENT, INCLUDING THE TERMS AND CONDITIONS LISTED ON THE ROEVVERSE SIDE, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. FURTHER, CUSTOMER AGREES THAT THIS AGREEMENT IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PAR- TIES, SUPERSEDING ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF. Accepted by: IBM Credit Corporation For oras Lender: By: Authorized Signature ''25 397640Naa0251nev 5'67)ConlnualbnSh, 2,253977) By: City: 'Corpus Chris Authorized Signature Craig cDowell 9/15/87 Name (Type o- • - � Dale /' " %b .AUTHORIZE) BY COUNCIL RETAR'' . 1. FINANCING OF LICENSED PROGRAM MATERIAL CHARGES (LPM CHARGES). The Commencement Date, unless otherwise specified herein, will be the date payment of the LPM Charges is due IBM under the License Agreement and Lender • will pay such charges directly to IBM. Any other charges due IBM under the License Agreement shall be paid directly to IBM by Customer. Customer's obligation to make pay- ments under this Agreement shall not be affected by any discontinuance, return or de- struction of any license or licensed program materials under the License Agreement on or after the date LPM Charges are due. If Customer discontinues any of the licensed pro- gram materials in accordance with terms of the License Agreement prior 10 the date LPM Charges are due, the Financing of affected LPM Charges shall be cancelled. if Customer prepays Financing for related IBM equipment under a referenced IBM Installment Pay- ment Agreement or terminates a lease for related IBM equipment under a referenced Term Lease Supplement, Lender may require prepayment of Financing for related LPM Charges under this Agreement. 2. FINANCING PREPAYMENT. Upon Customer notice of intent to prepay a remaining obligation, Lender will provide a quote to Customer for prepayment at a date, which shall be no earlier than 30 days alter Lender's receipt of Customer notice, and such quote will be an amount, which shall be less than the sum of the remaining payments. Customer can terminale the obligation by paying the amount quoted on the date specified. 3. CHANGES. Any change in the charges, Commencement Dale or other details of the Financing may be cause for Lender to adjust the rates and terms of this Financing by written notice to Customer. Upon such adjustment, by notice to Lender prior to the Commencement Date, Customer may terminate the Financing for the affected item. 4. RATE PROTECTION. Unless modified pursuant to Paragraph 3, the Periodic Pay- ment shall be based on the Rale indicated or such greater Rale as may be specified by written notice to Customer more than three months before the Commencement Date. By notice to Lender prior to the Commencement Date, Customer may terminate the Financ- ing for such affected item. Otherwise the Periodic Payment shall be adjusted to reflect the increase. 5. SELECTION AND USE OF EQUIPMENT, LICENSED PROGRAM MATERIALS, PRODUCTS OR SERVICES. Customer recognizes that this is a financing agreement and agrees that Customer is responsible for the selection, use of, and results obtained from the equipment, licensed program materials, products or services financed through this Agreement and any other associated equipment, programs or services. If the equipment, s- factoryfor any reascensedon, Customer ram materials, l make any claim financedsolelyucts or services are aga against the supplier hereof and shall, nevertheless, pay Lender all amounts payable under this Agreement. 6. GENERAL. Other than Lender's obligation to pay the LPM Charges or other amounts financed, as specified in this Agreement, responsibilities and limitationsapplica- b!e to Customer as defined in any referenced IBM agreement shall apply to Customer. If the IBM licensed program materials are subject to a discount offering, (a) the LPM Charges will be the same amount that would have been payable to IBM by Customer, and (b) Customer will remain responsible to IBM for any adjustment charges or any other charges incurred under the discount offering. LPM Charges are subject to change in ac- cordance with the license Agreement. 7. CUSTOMER ASSIGNMENTS. This Agreement Is not assignable by Customer. Any attempted assignment or transfer by Customer of any of the rights, duties or obligations under the Agreement is void. 8. EVENTS OF DEFAULT. Any one or more of the following are Events of Default: (a) Customer fails to make any payment to Lender when due and such failure shall continue for a period of seven days after the due date; (b) Customer fails to perform any other obli- gations under This Agreement or violates any of the representations, covenants or agree- ments made by Customer in this Agreement or any other lease or financing agreement with IBM or IBM Credit Corporation and such failure or breach shall continue for a period 0115 days after written notice from Lender; or (c) Customer violates any of the representa- tions made by Customer in any application for credit or submits inaccurate financial infor- mation for the purpose of inducing Lender to enter into this Agreement. Any failure of Len- der to require strict performance by Customer or any waiver by Lender of any provisi»ri of this Agreement shall not be construed as a consent or waiver of any other bree the same or any other provision. 9. REMEDIES. If an Event of Default shall have occurred and be continuing, Le, or assigns may, to the extent permitted by law, (a) declare this Agreement to be in default and all payments due and to become due to be immediately due and payable; (b) declare any other lease or financing agreements with Lender or with IBM Credit Corporation to be in default and declare all payments due and to become due thereunder to be im- mediately due and payable; (c) recover from Customer any and all such amounts due underlared to be in de- fault; and (dhis ) recover reasonareement and ble other leattorney's fees and legal expenses nagreement cexercising any of its rights and remedies upon default. Upon request of Lender, Customer agrees to surren- der to Lender for return to licensor all licensed program materials for which Lender has financed the charges, and to destroy any and all copies thereof. Customer hereby au- thorizes Lender to request that licensor terminate the license for those programs for which the financing is in default. Customer acknowledges that such termination and surrender will not reduce the economic damages sustained by Lender as a result of default by Cus- tomer, and that such damages can be recompensed only by recovery of amounts due and to become due under the relevant agreement. Lender may pursue any other remedy avail- able at law or in equity, including, but not limited to, seeking damages, specific perfor- mance and an injunction. No right or remedy is exclusive of any other provided herein or permitted by law or equity. All such rights and remedies shall be cumulative and may be enforced concurrently or individually from time to time. 10. FULL TERM INTENTION; APPROPRIATION OF FUNDS. Customer represents it is a slate or political subdivision of a stale and warrants receipt of any necessary authori- zation to sign and comply with this Agreement. Custom€r intends to pay all Periodic Pay- ments and, if needed, to request appropriation of funds. II Customer's request for funds for any item of Financing is denied, Customer's obligation to make the remainder of the Periodic Payments will end with the availability of funds but only so long as Customer ja) does not substitute similar financing; (b) does not substitute products or services function- ally similar to those for which Financing was provided; and (c) has not discriminated against Lender's Financing. If funds are not appropriated for Financing for IBM LPM charges, upon request of Lender, Customer agrees to surrender to Lender for return to licensor all licensed program materials for which Lender has financed the charges, and will destroy any and all copies thereof. Customer hereby authorizes Lender to request that licensor terminate the license for those programs. 11. REPORTING REQUIREMENTS. Customer agrees 10 fully and timely comply with all information reporting requirements under the Internal Revenue Code of 1996 (Code) Section 149 to ensure Lender's interest income from this Transaction shall be exempt from federal income tax pursuant to Code Section 103. 12. NOTICES; ADMINISTRATION. Service of all notices under this Agreement shall be sufficient if delivered personally or mailed to Customer at its address specified or to Lender in care of the IBM Branch Office specified Notice by mad shall be effective when deposited in the United addressed and e prepaid. Notices. consents and approvalsf from ndershat be given by Lnderdi ectlyortthrough IBM. All paymonts to Lender shall be made to IBM unless Lender notifies Customer otherwise 13. APPLICABLE LAW; SEVERABILITY. This Agreement shall be governed by Cus- tomer's state laws. If any provision shall be held to be invalid or unenforceable, the validity and enforceability of the remaining provisions shall not in any way be affected or impaired. Corpus Christi, Te as 15 day of The above resolution was passed by the following vote: Betty N. Turner David Berlanga, Sr. Leo Guerrero Frank Mendez Clif Moss Bill Pruet Mary Rhodes Mary Pat Slavik Linda Strong 99.066.01 19970 1987