COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND TEN COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: W.R. HIerholzer OFFICE: Kerr Counri Sheriffs Office MEETING DATE: Julv 24, 2006 TIME PREFERRED: SUBJECT: Consider, discuss and take appropriate action regarding updating telephone system and renewing contract for five years with Kerrville Telephone Business Systems. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Sheriff Hierholzer ESTIMATED LENGTH OF PRESENTATION: 3 minutes IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time For submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chap[er SSI and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday. THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared For the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towazds your request being addressed at the eazliest opportunity. See Agenda Request Rales Adopted by Commissioners' Court. July aa, zoo6 TO: Kerr County Judge Pat Tinley and Kerr County Commissioners' Court FROM: Sheriff W.R. Hierholzer RE: Telephone Contract Consider, discuss and take appropriate action regarding updating telephone system and renewing contract for five years with Kerrville Telephone Business Systems. KERRVILLE TELEPHONE BUSINESS SYSTEMS Sales Proposal KERR COUNTY SHERIFF 'S DEPARTMENT DIGITAL KEY SYSTEM UPGRADE taApr-os Norstar Modular Digital Integrated Communications Svstem Upgrade 1 MICS 7.0 Software Upgrade (SOTVare Up9ratle) 1 Key Indicator Module (Atltlltional 24 Prvgrammable autlona for T]J16E Telephone) 12 77316E Feature Telephone Sets (Aaminislralive start / nlgn usage locanons) 1 Norte) Messaging 150 Voice Mail (ao mauboxes wlm ez naum smrage expantlable m zoo mallboxea) 1 Fiber Station Module (Allows Expansion of 18 Digital S/alions) 1 Fiber Trunk Module (Allows Expansion of J Trvnk Cartritlges) 1 Caller ID Trunk Cartridge (PrOVia˘s q Cal4ng 61ne In Trunks) 1 Misc Installation Materials (Aaanionau tabor, wiring, em. ) Five Year Lease wlFull Term Warranty $618.00 Purchase Price w/One Year Warranty $12,260.00 '°^ PURCHASE AGREEMENT ALL MATERIAL IS GUARANTEED TO BE AS SPECIFIED. ALL WORK TO BE COMPLETED IN A WORKMAN LIKE MANNER ACCORDING TO STANDARD PRACTICES. Any atltlitions or tleletions to the system must be approvetl in waling by the customer antl KTBS. Price is based on stantlard telephone cable antl tloes not inclutle contluil or spectally treated cable. Customer to provide detlicated electrical power to the Telephone equipment location. PURCHASE AGREEMENT ACCEPTANCE The above prices, spect(caticns antl contliticns ara satisfactory antl are hereby acceptetl. Vou are authorizetl to proceed with work as specifetl. Buyer assumes risk of loss upon delivery of equipment. Payment to be as follows: CASH LEASEITERMS Authorized Signature Title DATE This document from Kerrville Telephone Company is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Unauthorized review, use, disclosure, distribution or reproduction of this document and/or any of its attachments (if any), by unintended recipients is prohibited. I:\KTBS\Ktbs Quotes\Sa1e0106\[g8967 t3u.XLS]PRESENTATION SSPBTC/KTBS LEASE/In/v]/ng TELECOMMUNICATIONS EQUIPMENT LEASE -~ WITH PURCHASE OPTION LEASE NUMBER: 4K06007 THIS TELECOMMUNICATIONS EQUIPMENT LEASE is made this ] 4Th day of March , 2006, by and between ADVANCED TEL-COM SYSTEMS CORPORATION d/b/a KERRVILLE TELEPHONE BUSINESS SYSTEMS, a Texas corporation, with its principal offices located at 955 Water Street, Kerrville, Kerr County, Texas, hereinafter referred to as "Lessor", and Kerr County ,located at ., 400 Clearwater Paseo Dr., Kerrville Texas, Kerr County, Texas hereinafter referred to as "Lessee"; Lessor and Lessee being hereafter referred to collectively as [he "Parties". In consideration of the mutual promises contained herein, the Parties agree as follows: ARTICLE 1. EQUIPMENT LEASED 1.01 The Lessor hereby leases to the Lessee and Lessee hereby leases and hires from the Lessor the telecommunications equipment and other property, collectively the "Equipment", described in: A. Exhibit A, Schedule of Equipment, attached hereto and incorporated into this lease; and B. Any amended Exhibit Aand/or amended schedule or schedules hereafter executed by the Parties, from and after the date of execution of the same. ARTICLE Z. TERM 2.01 The primary term of this lease shall commence on the date shown in Exhibit A, and shall be for the period set out in Exhibit A. Upon expiration of the primary term of this lease, the Lessee, at Lessee's option, may: I) Return the Equipment as herein provided; 2) Purchase the Equipment for the amount set out in Exhibit A; or 3) Continue the lease on a month to month basis as set out in Exhibit A. In the even[ Lessee opts to continue this lease on a month to month basis, the lease shall be terminable by either party upon one month's notice to [he other party. ARTICLE 3. LEASE PAYMENTS 3.01 Monthly Amount Lessee shall pay to Lessor monthly and in advance during [he term of this lease, the monthly lease payment set out in Exhibit A, or in any amended Exhibit A as maybe executed by the Parties in writing from time to time, plus all applicable taxes, within thirty days ofthe date of billing therefor. Lessee shall make such payments to Lessor at Lessor's office at 955 Water Street, Kerrville, Kerr County, Texas 78028, or such other location as Lessor may from time to time designate in writing. 3.02 Advance Payment Lessee shall pay to Lessor in advance, at or before delivery of the Equipment, and in lieu of [he payments otherwise scheduled, [he first and last month's lease payments plus applicable taxes, as set out in Exhibit A. SSP/FTC/KTBS LEASP/IU/aJ/ng 3.03 Security Deposit As security for the prompt and full payment of the lease payments due Lessor, and the faithful and timely performance by Lessee of all duties and obligations imposed on Lessee by [his Lease during the term and/or any extension or renewals thereof, Lessee has pledged and deposited with the Lessor the amount set forth in Exhibit A as a Security Deposit. In the event Lessee defaults in the performance of any of its obligations herein contained, including without limitation, payment of any monthly lease payment due hereunder, the Lessor shall have the right, but shall not be obligated, to cure the default and to apply the said security deposit to the cost thereof. Any such utilization of the Security Deposit by the Lessor shall not be a defense by Lessee to any action by the Lessor arising out of any default by Lessee, and on demand, [he Lessee shall restore [he Security Deposit to the full amount set forth in the schedule in Exhibit A. On the expiration of this lease or any extension or renewal [hereof, provided the Lessee has paid all ofthe lease payments required hereby and fully performed all of [he other provisions of this Lease to be performed on its part, the Lessor shall return [o the Lessee any then remaining balance of said security deposit. 3.04 Default If the Lessee fails to pay any lease payment or other amount herein required by the due date of such payment, or if any execution or any writ of process shall be issued in any action or proceeding against the Lessee whereby the Equipment may be seized, taken, or distrained, or if a proceeding in bankruptcy, receivership, or insolvency shall be commenced by Lessee voluntarily, or involuntarily against Lessee, or if Lessee shall enter into any arrangement or composition with its creditors, or if Lessee fails [o observe, keep, or perform any other provision of [his Lease required to be observed, kept or performed by the Lessee, and if Lessee fails to cure such default within ten days following written notice ofsuch default by Lessor [o Lessee, Lessor shall have the right to any or all of the following remedies: A. To terminate this Lease and Lessee's rights under this Lease as to all items of property. To declare the unpaid balance of [he lease as of the date of default, as well as any other [hen unpaid amounts due or to become due [o Lessor from Lessee under [he Lease, immediately due and payable, in which event Lessor shall be entitled to the amount thereof, together with interest at the highest legal rate per month permitted by applicable law, from the date of default to the date of payment. It is acknowledged by Lessee that the Equipment leased hereunder has been specially ordered and acquired by Lessor for Lessee hereunder, and that the Equipment will have no determinable lease value for lease [o parties other than Lessee. It is therefore agreed between the Parties hereto, that the portion of the amount due to Lessor under this Sub-paragraph following a default by Lessee which constitutes the unpaid balance of lease payments to the date of Lessee's default, and all unpaid lease payments and other amounts due or to become due to Lessor under this Lease from and after the date of Lessee's default to [he end of the term of this Lease if Lessee had not defaulted, are liquidated damages. C. To enter on to the premises whereon the Equipment is located without breach ofthe peace and without notice, court order or other process of law, and take possession of and remove the Equipment, without being considered a trespasser. Repossession of the Equipment under this subparagraph shall not constitute a termination of the Lease unless the Lessor expressly so notifies the Lessee in writing. D. To pursue any other remedy at law or in equity. Notwithstanding any said repossession or any other action which the Lessor may take, unless Lessor declares the Lease terminated, the Lessee shall be and remain liable for the full performance ofall obligations to be performed bythe Lessee under the Lease. All such remedies are cumulative to the extent permitted bylaw, and may be exercised concurrently or separately. The exercise of one or more remedies shall not be deemed to preclude the exercise of any other remedy. -2- SSP/ATC/ATRS LEASE/10/9J/ng 3.05 Offset ~~ The Lessee agrees to pay the rent, and other amounts hereunder regardless of any claim, defense, or offset which may be asserted by the Lessee or on its behalf. 3.06 No Waiver Any failure or delay or forbearance on [he part of Lessor to exercise any remedy, privilege or right under this Lease shall not operate as a waiver of Lessor's right to exercise any such right or remedy hereunder, but to the contrary, all such rights, remedies and privileges shall continue in effect as if no failure, delay or forbearance had occurred. Acceptance by Lessor of rent or other payment made by Lessee after default and notice shall not be deemed a waiver of Lessor's rights and remedies arising from Lessee's default. No covenant or condition of this Lease maybe waived except in writing by Lessor, and such written waiver of any term ofthis Lease shall be affective only in the specific instance and for the specific purpose given. ARTICLE 4. USE AND MAINTENANCE OF EQUIPMENT 4.01 Right to Use Unless [he Equipment is repossessed by Lessor during the term of the Lease as hereinbefore provided in Paragraph 3.04(C) , Lessee shall have the exclusive right to use, operation and possession of the Equipment. 4.02 Lawful Use Lessee shall use the Equipment in a careful and proper manner, and agrees not to permit the Equipment to be operated or used in violation of any applicable federal, state or local statute, law, ordinances, rule or regulation. .,,,., 4.03 Business Use Lessee represents and warrants to Lessor as a part of the consideration here for, that the ]eased equipment will be used for commercial or business purposes only. 4.04 Location of [he Equipment Lessee agrees that [he Equipment shall not be moved or removed from the location where initially installed as set out on Exhibit A, by Lessor without the express written consent of Lessor. 4.05 Free Maintenance Period Lessor agrees to maintain the Equipment in good working order at the manufacturer's specified levels of performance, except for malfunctions resulting from non-covered events set out below, free of charge (parts, labor, taxes and miscellaneous charges included) for the "Free Maintenance Period" set out in Exhibit A. Repairs necessitated by non-covered events will be at Lessee's expense at Lessor's then prevailing rates for labor and parts, plus applicable taxes and shipping charges. Lessor will notify Lessee of Lessor's intent to charge Lessee for any non-covered repairs prior [o beginning any such repairs. -3- SSP/I:TGKTBS LEASE/IOl9"Iing Non-covered events are equipment failures resulting from: ~~~ A. Misuse or abuse; B. Negligence of any person other than KTBS personnel; C. Accident; D. Theft or unexplained loss; E. Connection to electrical current or excess electrical current or electrical power; F. Fire, water, wind or Acts of God; and G. Improper wiring, installation or repair, or report or alteration by any persons other than KTBS employees. 4.06 Maintenance Charge After the end of [he Free Maintenance Period, Lessor shall maintain the Equipment at its then prevailing rates for labor and parts, plus applicable taxes and shipping. 4.07 No Other Maintenance During the term of this Lease and any extensions [hereof, including any period between the end of the Free Maintenance Period and the end of the term of this Lease, Lessee shall not permit any person other than Lessor's authorized service personnel to perform any maintenance on or adjustment to the Equipment. 4.08 Requests for Maintenance Lessee shall notify Lessor of any equipment failure or malfunction, and ifsuch failure is the result or apparent result of anon-covered event known to Lessee, Lessee shall also report such non-covered to Lessor. ARTICLE 5. INSPECTION/NOTICE OF ATTACHMENT 5.01 Inspection Lessor shall have [he right at any and all reasonable times during Lessee's normal business hours, to enter onto the premises where the Equipment may be located for the purpose of inspecting the same and observing its use. 5.02 Notice of Attachment Lessee shall give written notice to Lessor in writing of any attachment, levy, or other legal process or any attempt to do so as soon as possible after Lessee becomes aware of such action, but not later than the next business day following [he day Lessee became aware of such action. ARTICLE 6. ALTERATIONS The Lessee shall not without prior written consent of the Lessor make any alterations, additions or improvements to the equipment. All additions and improvements of whatsoever kind or nature made to the equipment shall be considered part of [he Equipment on [he termination of the Lease. -4- SSPR:TC/KTBS LEASE/IO@]Ing ARTICLE 7. LOSS AND DAMAGES 7.01 Risk of Loss Except as may be specifically provided hereinafter to the contrary, Lessee hereby assumes and shall bear the entire risk of loss and damage to the equipment from any and every cause from the time any such equipment is delivered to Lessee's premises, whether or not installed by Lessor at the time ofany such loss, including without limitation, risk of all damages to the Equipment arising from misuse or negligent use or operation of the Equipment by Lessee, its agents or employees, and Lessee shall indemnify Lessor against all such loss or damage to [he equipment during the term of the lease or any extensions thereof. 7.02 Lessee's Obligations Following Loss or Damage In the event of loss or damage ofany kind to any item of equipment, the Lessee, at the option of the Lessor shall: A. Place the same in good repair, condition, and working order; or B. Replace [he same with like equipment in good repair, condition, and working order; C. Pay to Lessor the replacement cost thereof. ARTICLE 8. SURRENDER ON TERMINATION 8.01 Unless Lessee exercises its options, if any, to retain the property at the end of the term of this lease as set out in Exhibit A, on the expiration of the term of this Lease, or upon earlier termination ofthis Lease ifpermitted by or in accordance with the terms hereof, with respect to each item of leased equipment, the Lessee shall return the ,,... same to the Lessor in good repair, condition, and working order (ordinary wear and [ear resulting from proper use thereof excepted) in [he following manner as may be specified by the Lessor: A. By delivering each such item of equipment at the Lessee's cost and expense to such place as the Lessor shall specify within Kerr County, Texas; or By loading the item of equipment a[ the Lessee's cost and expense on board such carrier as the Lessor shall specify and shipping the same, freight collect, [o the destination in Kerr County, Texas, specified by the Lessor. ARTICLE 9. INSURANCE AND TAXES 9.01 Insurance During the term of the Lease, the Lessee shall keep [he equipment insured against all risks of loss or damage from every cause whatsoever for not less than the full replacement value thereof as determined by the Lessor. The Lessee shall carry public liability and property damage insurance covering the equipment. All said insurance shall be in the form and amount and with companies approved by the Lessor, and shall name Lessor as an additional named insured. The Lessee shall pay the premiums therefore and shall deliver said policies, or duplicates thereof, to [he Lessor. Each insurer shall agree by endorsement on [he policy issued by it or by independent instrument furnished to the Lessor, [hat i[ will give the Lessor thirty days written notice before the policy in question shall be altered or canceled. The proceeds of such insurance, a[ the option of the Lessor, shall be applied toward the replacement, restoration, or repair of the equipment. -5- SSP/kTCR:TBS IEASEl10/97/ng 9 02 Liens and Taxes The Lessee shall keep the equipment free and clear of all levies, liens, and encumbrances and shall pay all license fees, registration fees, assessments, charges, and taxes which may now or hereafter be imposed on the leasing, renting, sale, possession, or use ofthe equipment, excluding, however, all taxes on or measured by the Lessor's income, or ad valorem [axes levied by reason of ownership of the equipment. 9.03 Lessor's Payment ]n the case of failure of the Lessee to procure or maintain said insurance or to pay said fees, assessments, charges, and taxes as hereinbefore specified, the Lessor shall have the right, but shall not be obligated, to obtain such insurance, or pay such fees, assessments, charges, and/or taxes, as the case maybe. In such event, [he cost thereof shall be repayable to the Lessor by Lessee with [he next lease payment, and failure to repay the same shall carry with it the same consequences as failure to pay any monthly lease or other payment due hereunder. ARTICLE 10. PERSONAL PROPERTY This equipment is, and shall at all times be and remain, personal property, notwithstanding that the equipment or a part thereof may now be, or hereafter become, in any manner affixed or attached to, or embedded in, or permanently resting on, real property or any building thereon, or attached in any manner to that which is permanent as by means of cement, plaster, nails, bolts, screws, or otherwise. ARTICLE 11. OWNERSHIP The equipment is, and shall at all times be and remain the sole and exclusive property ofthe Lessor. The Lessee shall have no right, title, or interest therein, except as expressly set forth in the Lease. .y.. ARTICLE ]2. ASSIGNMENT 12.01 Non-Assignability by Lessee W ithou[ prior written consent of the Lessor, the Lessee shall not: A. Assign, transfer, pledge, or hypothecate this Lease, the equipment or any part of it, or any interest in it; or B. Sublet or lend the equipment or any part of it, or permit the equipment or any part of it to be used by anyone other than the Lessee or the Lessee's employees. Consent by [he Lessor to any ofthese prohibited acts applies only in the given instance, and is not a consent to any subsequent like act by [he Lessee or any other person. Lessor's consent to these prohibited acts shall not be unreasonably withheld. ]2.02 Lessor's Assignment All rights of the Lessor under this Lease may be assigned, pledged, mortgaged, transferred, or otherwise disposed of, either in whole or in part, without notice [o [he Lessee. If the Lessor assigns this Lease or the rentals due or [o become due hereunder or any other interest herein, whether as security for any of its indebtedness or otherwise, the same shall not constitute a breach or default by the Lessor hereunder or pursuant [o any provision hereunder. Any assignee of Lessor shall be obligated to perform any duty, covenant, or condition required [o be performed by the Lessor under the terms of [his Lease, and shall have all of the rights, powers, privileges and remedies of Lessor set forth in this Lease. In the event of assignment, Lessee shall be obligated to [he Assignee following written notice of such assignment as ifAssignee were the Lessor hereunder. -6- SSPlIiTI/ATBS LEASEIIO/S7/ng .... ARTICLE 13. INDEMNITY The Lessee shall indemnify the Lessor and its employees, shareholders, officers, directors and agents against, and shall hold [hem harmless from any and all claims, actions, suits, proceedings, cost, expenses, damages, and liabilities to third parties, including attorney's fees, claimed by or on behalf of any third party, either directly or indirectly, including without limitation Lessee's employees, agents, licensees or invitees, arising out of, connected with, or resulting from the use or possession of the Equipment. ARTICLE 14. WARRANTY 14.01 Warranty Lessor warrants title to the Equipment, and for a period of Five (5) years from the date of this lease agreement warrants such Equipment to be merchantable, and free of defects in workmanship and material. Lessor also warrants for a period of Five (5) years from the date of installation that the installation of Equipment is conducted in a professional manner using good installation practices, is free of defects in workmanship and that the Equipment is in good working order on the date of installation. Lessor shall, in accordance with the terms of this Lease, make all necessary adjustments, repairs or replacements necessary [o bring the Equipment into conformance with this Warranty, which shall be Lessor's sole obligation hereunder with respect to such non- conformance. 14.02 No Other Warranty THE WARRANTY EXPRESSED IN PARAGRAPH 14.01 ABOVE IS IN LIEU OF ALL OTHER WARRANTIES, EITHER EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FORANY PARTICULAR PURPOSE OR USE. --- ALL SUCH WARRANTIES ARE HEREBY SPECIFICALLY DISCLAIMED. THE WARRANTY EXPRESSED CONSTITUTES THE ONLY WARRANTY OF LESSOR WITH RESPECT TO THE EQUIPMENT AND OF ANY AND ALL LIABILITIES ON THE PART OF LESSOR FOR DAMAGES INCLUDING BUT NOT LIMITED TO, CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE OF THE EQUIPMENT. 14.03 No Consequential Damages LESSOR, ITS OFFICERS, SHAREHOLDERS, DIRECTORS, EMPLOYEES OR AGENTS SHALL NOT BE LIABLE, WHETHER IN CONTRACT OR IN TORT OR ANY OTHER LEGAL THEORY, FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR FOR LOSS, DAMAGE OR EXPENSE OR FOR PERSONAL INJURY OR LOSS OR DESTRUCTION OF OTHER PROPERTY DIRECTLY OR INDIRECTLY ARISING FROM BUYER'S USE OF OR INABILITY TO USE THE EQUIPMENT, OR FROM A FAILURE OF THE SYSTEM FROM WHATEVER CAUSE, OR FROM ANY OTHER CAUSE. LESSOR'S LIABILITY SHALL BE LIMITED TO THE REPAIR OR REPLACEMENT OF DEFECTIVE PARTS, AS SET OUT ABOVE, AND IN ALL EVENTS SHALL CEASE AND TERMINATE AT THE EXPIRATION OF Five (5) YEARS FROM INSTALLATION DATE. -7- SSP/Y:TC/KTBS LEASEI1019~/ng 14.04 Notification and Compliance If within [he warranty periods set out above in Paragraph 14.01 above, Lessee discovers that any item was not as warranted, Lessee shall notify [he Lessor [hereof. 14.05 Expiration Date The warranties expressed in Paragraph 14.01 shall cease and no warranties of any kind with respect to the Equipment, shall exist after Five (5) years following the installation of the equipment. 14.06 Force Majeure Lessor shall not, under any circumstances be liable for damage or loss resulting from Acts of God, acts of governmental bodies or agencies, or for the fault, negligence, or wrongful acts of the Lessee, Lessee's employees, or Lessee's agents, licensees, invitees, contractors or suppliers. ARTICLE IS GENERAL PROVISIONS 15.01 Parties'Expenses The Lessee shall pay the Lessor all reasonable costs and expenses, including reasonable attorney's fees, incurred by the Lessor in exercising any of its rights or remedies hereunder or enforcing any of the terms, conditions, or provision hereof due to Lessee's breach. 15.02 Concurzent Remedies No right or remedy herein conferred on or reserved to the Lessor is exclusive of any other right or remedy herein or by law or equity provided or permitted; but each shall be cumulative of every other right or remedy given hereunder or now or hereafter existing at law or in equity or by statue or otherwise, and may be enforced concurrently therewith or from time to time. ] 5.03 Nonwaiver No covenant or condition of this Lease may be waived except by written consent of the Lessor and Lessee. Forbearance or indulgence by the Lessor in any regard whatsoever shall not constitute a waiver ofthe covenant or condition to be performed by the Lessee [o which the same may apply, and until complete performance by the Lessee of any covenant or condition, the Lessor shall be entitled to invoke any remedy available to the Lessor under this Lease or by law or in equity despite said forbearance or indulgence. 15.04 Entire Agreement This Lease constitutes the entire agreement beriveen the Lessor and Lessee and supersedes any prior understanding or written or oral agreements between the parties respecting the within subject matter. It shall not be amended, altered, or changed except by a written agreement signed by the parties hereto. 15 OS Gender; Number Whenever the context of this Lease requires, the masculine gender includes [he feminine or neuter and the singular number includes the plural. Whenever the word "Lessor" is used herein, it shall include all assignees of [he Lessor. If there is more than one Lessee named in this Lease, the liability of each shall bejoint and several. -8- ' SSP/KTC/KTBS LEASHIO/e9/ne 5.06 Time Time is of the essence in this Lease and in each and all of it provisions. 15.07 Texas Law to Apply This Lease shall be construed under and in accordance with [he laws ofthe State ofTexas and all obligations of [he Parties are performable in Kerr County, Texas. 15.08 Parties Bound This Lease shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns where permitted by this Lease. 15.09 Legal Construction If any one or more of the provisions contained in the Lease shal l for any reason be held to be invalid, it legal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions thereof and this Lease shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 15.10 Prior Orders The terms and conditions of [his Lease shall prevail not- withstanding any variance with [he terms and conditions of any purchase order submitted by the Lessee. 15.11 Government Contracts The Lessor will comply with all provisions required to be inserted in the Lessee's purchase orders in accordance with the terms of any applicable Federal Statue, ONLY IF LESSOR SO INDICATES BY EXECUTING A GOVERNMENT CONTRACT ADDENDUM AND ATTACHING IT HERETO. ] 5 12 Patent Infringement The Lessee shall hold [he Lessor harmless against any expense or loss resulting from infringement ofpatents or trademarks arising form Lessee's independent acts, or from compliance with the Lessee's requested design or specifications or instructions. -9- .SSP/KT~/ICTRS L[ASrJI O/4]/ng 15.] 3 Notices Any notice to a party pursuant to this Agreement shall be in writing and, if mailed, postage prepaid and addressed as provided herein, shall be deemed to be received by the addressee no later than the third day after [he notice is deposited with the U.S. Postal Service from a location inside the State of Texas. The proper addresses for the parties are as follows: Lessor: Kerrville Telephone Business Systems P. O. Box 290130 Kerrville, Texas 78029-0130 Lessee: Kerr County C/O Kerr County Sheriffs Office 400 Clearwater Paseo Drive Kerrville, Texas 78028 or such other address as either party shall give in writing to the other. Agreed to this 14Th day of March , 2006. LESSOR: LESSEE: Kerrville T~lephnne $usiness Systems gy l /I W.G. (6111) Stacy Director Of Marketing Kerr County -10- SSPIFTC/IiT65 LEASFJI OI9Vng --- EXHIBIT "A" to TELECOMMUNICATIONS EQUIPMENT LEASE AGREEMENT Initial if this is an Amended Exhibit A. Date of Amendment LEASE NO: 4K06007 TELEPHONE #: 830-896-] 133 CUSTOMER: Kerr County Sheriff s Office ADDRESS: 400 Clearwater Paseo Dr / Kerrville, TX. 78028 LIST OF LEASED EQUIPMENT (LEASE PARAGRAPH 1.01): 1 -Norstar Modular ICS (0X32) 1 -Norstar MICS 7.0 Software ] 2 - T7316E Feature Telephones I - T24 Key Indicator Module ] - M7324 Feature Telephones 16 - M7310 Feature Telephones 32 - M7100 Feature Telephones 3 -Analog Teminal Adapters '"` 5 CID Trunk Cartridges 1 LS/DS Trunk Cartridge 3 -Station Modules 2 -Trunk Modules I - 6 Port Expansion Cartridge 1 -Power Bar ] - Nortel Messaging 150 w/40 Mailboxes I - APC BK450 Uninterruptible Power Supply 1 -Miscellaneous Materials TERM OF LEASE (LEASE PARAGRAPH 2.01): 60 Months Beginning ending RECURRING MONTHLY PAYMENTS (LEASE PARAGRAPH 3.01): MONTHLY LEASE PAYMENT (excluding tax): $ 618.00 APPLICABLE TAXES $ Exempt TOTAL MONTHLY LEASE PAYMENT $ 618.00 ADVANCE PAYMENT REQUIRED (LEASE PARAGRAPH 3.02): FIRST AND LAST MONTHS PAYMENT IN ~^- ADVANCE, EXCLUDING TAX $ N/A $SPIKTUkT6S LEAST/10/9]/ng ~` APPLICABLE TAXES: $ N/A TOTAL DUE IN ADVANCE: $ N/A SECURITY DEPOSIT (LEASE PARAGRAPH 3.03): NONE LESSEE'S OPTIONS AT END OF PRIMARY TERM (LEASE PARAGRAPH 2.01): Continue the lease on a month to month basis a[ the monthly lease rate in efTect at the end of the Primary Term of [his lease, as referenced in Article 2 of this Lease Agreement. 2. Surrender the Equipment as provided in Article 8 of this Lease Agreement. _~ 3. Purchase the Equipment in place and as is for the sum of One Dollar ($].00). EQUIPMENT LOCATION (LEASE PARAGRAPH 4.04): FREE MAINTENANCE PERIOD (LEASE PARAGRAPH 4.05): b0 months from the commencement of this lease, but in no event extending beyond tha termination of the (ease, no matter how occasional.