PNC Bank | Kim SimonPhone:614.670.3994 | Fax866.852.3101 |[email protected] TAX EXEMPT LEASE PURCHASE Sales Organization: Sales Representative: Lessee: Delivery Time: Payment Type: First Payment Due Date: Commencement Date: Equipment: Apparatus Cost: Down Payment: Trade In: Amount Financed: TermNumber of PaymentsPayment AmountsInterest RateTYPE OF FINANCING:Tax-exempt Lease Purchase Agreement with a $1.00 buy-out option at end of lease term. Said agreement shall be a net lease arrangement whereby lessee is responsible for all costs of operation, maintenance, insurance, and taxes. PERFORMANCE BOND:To utilize the prepay program, a performance bond is required. Said performance bond shall be paid for directly to Pierce Manufacturing or financed by PNC Bank as part of the transaction.1.AUTHORIZING RESOLUTION AND SIGNORS:The lessee's governing board shall pass a Resolution or ordinanceacceptable to PNC Bank, National Association (“PNC”) (PNC’s form is strongly preferred) authorizing the transactiondesignating the individual(s) to execute all necessary documents used therein.2. BANK QUALIFICATION:This proposal assumes that the lessee will not be issuing more than $10 million in tax-exemptdebt this calendar year. Furthermore, it is assumed that the lessee will designate this issue as a qualified tax-exemptobligation per the tax act of 1986.3. LEGAL TITLE:Legal title to the equipment during the lease term shall vest in the lessee, with PNC perfecting a firstpriority security interest.4. LEGAL OPINION:The lessee's counsel shall furnish PNC with an opinion in a form and substance satisfactory to PNC(PNC’s form is strongly preferred).5. ESCROW FUNDING OPTION:At lease closing, if all of the equipment has not yet been delivered, Lessor will fund anescrow account from which disbursements will be made to the equipment provider(s) upon receipt of a Requisition Requestand Certificate of Acceptance from Lessee. Escrow agent will either be Lessor or third-party provider selected by Lessorand approved by Lessee. All escrow earnings will be for the benefit of Lessee. The escrow agent will assess a $250.00account set up fee payable at closing.VOLUNTEER FIRE DEPARTMENTS: If Lessee is a Volunteer Fire Department, a public hearing under the requirements of Section 147(f) of the Internal Revenue Code of 1986 shall be conducted to authorize this transaction. It is recommended that a notice of the public hearing be published 10 to 14 days in advance of the public hearing.This proposal will be valid for Seven Days (7) from the above date and is subject to final credit approval by PNC Bank and approval of the lease documents in PNC Bank’s sole discretion. To render a credit decision, lessee shall provide PNC Bank with their most recent three years audited financial statements, copy of their most recent interim financial statement, and current budget.Proposal Accepted: _______________________________Proposal Submitted :__________________________________Lessee: Representative: Kim Simon South CoastTim OlleyCity of OrangePer contractYearly1 year after lease startTBDPierceSearch and Rescue$2,031,793.00-$100,186.50$0.00$0.00$1,931,606.505 Year Lease Purchase5$434,256.934.03%November 25, 2025Taxes / discounts:
Budgetary Numbers: Date 5 Year Lease PurchasePierce Apparatus: (1) Search and Rescue Unit December 2025 Order/Lease StartEstimated Delivery: Per Contract December 2026 $434,256.93Cost: $2,031,793.00 December 2027 $434,256.93Sales Tax @ 7.75%: $157,463.96 December 2028 $434,256.93CA Tire fee: $17.50 December 2029 $434,256.93Consortium Fee: $2,000.00 December 2030 $434,256.93Performance Bond: $4,977.89 Rate 4.03%Total Cost without Discounts: $2,196,252.35 Total Payments $2,171,284.64Effective Rate -0.38%Cost: $2,031,793.00Budgetary Prepayment Discount:$245,611.00* Rate as of November 25, 2025 and is fixed at closing.Cost with Discounts: $1,786,182.00Sales Tax @ 7.75%: $138,429.11* Effective rate is the rate based on the price of the apparatus excluding CA Tire Fee: $17.50 prepayment discounts. It's what the rate needs to fall to at the time of Consortium Fee: $2,000.00 delivery to obtain the lease payment available today with the 100% the Performance Bond: $4,977.89 lease payment available today with the 100% prepayment discount.Amount Financed: $1,931,606.50Total Savings:$264,645.85