Deutsche Bank NTC

8/4/2019 Deutsche Bank NTC

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Respect full

ana M . 'I'ofigDirector of Public Information a eb Services

MONTGOMERY COUNTY PUBLIC SCHOOLSwww.montgomeryschoolsmd.orgARYLANDFebruary 2, 2011

1 am responding to your Maryland Public Information Act request for "copies of documents relating topayments made by Montgomery County Public Schools (MCPS) to Deutsche Bank NYC." I amresponding on behalf of the superintendent of schools who, as official custodian of records for the schoolsystem, is responsible for replies under the Maryland Public Information Act, Maryland StateGovernment Article 10-611, et seq.The enclosed documentation supports payments made to Deutsche Bank during fiscal year FY 2010.Deutsche Bank received payments from MCPS during FY 2010 as the collection and paying agent underthe Master Lease agreement with First Southwest Leasing (Carlyle Financial Services). Annual leasepayments are made to Deutsche Bank. Deutsche Bank then distributes the payments to the financinginstitution.The Master Lease Purchase Agreement dated June 25, 2004, along with individual payment invoices, areattached to document these payments as being made to Deutsche Bank in the capacity of collection andpaying agent under the Master Lease (reference is Section 20, page 12). This agreement remained ineffect for six years, ending in June 2010. The Board of Education used the Master Lease to financeacquisition of school buses, school technology modernization, maintenance vehicles and equipment, andclassroom furniture. Each of the attached payments represents an annual lease payment under one of theacquisition financings (closings) with First Southwest Leasing.The documents responsive to your request are enclosed.Maryland law, Article 10-621, allows a government unit to recover costs incurred to search and preparerecords. Montgomery County Public Schools (MCPS) charges a fee of 15 cents per page, therefore thecost of fulfilling your request is $2.55 (17 pages at 15 cents per page). Please make the check payable toMontgomery County Public Schools and send it to the Department of Public Information and WebServices, 850 Hungerford Drive, Room 112, Rockville, Maryland, 20850.

DMT:blsEnclosures


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First Southwest Leasing Company10/1/2009

Invoice #:636Board of Education of Montgomery CountyDivision of Controller, Room 156Attn: Richard Johnson850 Hungerford Dr.Rockville, MD 20850Master Equipment Lease/Purchase Agreement # 03.0195/04B Series 2004BTakedown No. 2, December 3, 2004

Payment # Payment Due Date Payment Amount6 of 62/3/2009

Total Payment:

$1,079,268.72$0.00$0.00$0.00

$1,079,268.72

Remit To:Deutsche Bank National Trust Company

ABAMMERNCUMMNIP

Re: Montgomery County Board of EducationAttn: Dennis Gillespie; 602-890-0113

Please note account numbern remittance.


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Invoice #:940Board of Education of Montgomery CountyDivision of Controller, Room 156Attn: Robert J. Doody850 Hungerford Dr.Rockville, MD 20850Master Equipment Lease/Purchase Agreement # 03.0195/09A Series 2009ATakedown No. 7, March 11, 2009

Payment #ayment Due Dateayment Amount2 of 6/11/20105,146,685.36

$0.00$0.00$0.00

Total Payment:5,146,685.36Rem it To: Deutsche Bank National Trust Company

ABNCM1111.10Re: Montgomery County Board of Education 09A

Attn: Dennis Gillespie; 602-890-0113Please note account numbern remittance.


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Invoice #:422Board of Education of Montgomery CountyDivision of Controller, Room 156Attn: Robert J. Doody850 Hungerford Dr.Rockville, MD 20850Master Equipment Lease/Purchase Agreement # 03.0195/10A Series 2010ATakedown No. 8, May 5, 2010

Payment #ayment Due Dateayment Amount1 of 65/05/20101,279,215.48

$0.00$0.00$0.00

Total Payment:1,279,215.48Rem it To: Deutsche Bank National Trust Company

ABANCONOMRe: Montgomery County Board of Education

Attn: Dennis Gillespie; 662-90-113Please note account numbern remittance.


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First Southwest Leasing Com pany3/1/2010

Invoice211Board of Education o f Mon tgomery CountyDivision of Con troller, Room 156Attn: Robert J. Doody850 Hungerford Dr.Rockville, MD 20850Master Equipment Lease/Purchase Agreement # 03.0195/05A Series 2005ATakedown No. 3, May 9, 2005, Group 11

Payment #ayment Due Dateayment Amount6 of 6/12/2010

.otatPayrnentvOtei67o KgR emit To:

Deutsche Bank National Trust CompanyABAA/C AWN.

Re: Montgomery County Board of Education 05AAttn: Dennis Gillespie;90-0113Please note account number/67 on remittance. $113,121.71$0.00$0.00$0.00$113,121.71


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Invoice #:317Board of Education of Montgomery CountyDivision of Controller, Room 156Attn: Robert J. Doody850 Hungerford D r.Rockville, MD 20850Master Equipment Lease/Purchase Agreement # 03.0195/06A Series 2006ATakedown No. 4, June 6, 2006

Rem it To:

Payment Due Dateayment Amount06/06/20102,390,402.61

$0.00$0.00$0.00

Total Payment:2,390,402.61Payment #5 of 6Deutsche Bank National Trust Company

ABAA/C 41.1.1b




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Invoice #:318Board of Education of Montgomery CountyDivision of Controller, Room 156Attn: Robert J. Doody850 Hungerford Dr.Rockville, MD 20850Master Equipment Lease/Purchase Agreement # 03.0195/-07A Series 2007ATakedown No. 5, June 14, 2007

Payment #4 of 6

Payment Due Date06/14/2010

Payment Amount$5,766,024.63$0.00

$0.00$0.00

Total Payment:5,766,024.63Remit To:

Deutsche Bank National Trust CompanyABAA/C 4.1.11111




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Invoice #:319Board of Education of Montgomery CountyDivision of Controller, Room 156Attn: Robert J. Doody850 Hungerford Dr.Rockville, MD 20850Master Equipment Lease/Purchase Agreement # 03.0195/08A Series 2008ATakedown No. 6, June 18, 2008

Payment #3 of 6

Payment Due Date05/18/2000

Total Payment:

Payment Amount$6,207,544.23

$0.00$0.00$0.00

$6,207,544.23

Remit To:Deutsche Bank National Trust Company

ABAA/C iiii1110011




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Receipts {MC PS)- D-Iliqg.FT-0. 5141C .lor/C#.7111 X AAvv..A. A_ ._ ;, . . . 1 1 . 7s .: s ss s ss 1 1 0

1 A C H[513005582

ICleared

a.

Recelpt History. :Distributions_. ReferencePostmark Date CommentsTax AmountTax -Rate %Purpose ActivityDistribution SetTax CodeTax Account .11111/dRLT lifriatr: Qescriptfon rtisc-Mist Cash Revenue-Name. iCarlyle Financial Ser Deutsche Customer BankName LAccountPayment Servererver ID 1Approval Code LRemittance BankName ,1,1 and T BankBranch 'BaltimoreAccount 1 1 1 1 1 1 1 1 . 1 1 1 1 1 1 7 1DOC Ric Johnson 05/13/2010--Receipt Payment MethodReceipt NumberNet Receipt AmountReceipt TypeStatus I L I SDIMiscellaneous 113,121.711 K11 7E..4 Receipt DateGL DateMaturity DateFunctional Amount t0 5 . . .14,2010105/14/2010113,121.711 Reference TypeNumberCustomer is1meCustomer NumLocationTaxpayer ID L


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-MASTM Z. EQUIPMENT LEASE PLRCEA . .SE AGREEMEN TT H L S M A S T E R . B Q U I P M E N T LEASE FURCHASE AGR2.EIYENT ( the ` 1 , ease") is dated as of

June 25, 2004, by and betw een Ca rlyle Financial Services, Inc. , 325 N orth St. Paul, kite COO , Dallas, Texas75 201 , as lessor (the "Lessor"), a Delaw are corporation authorized .t .0 do business in the State of Maryland,a n d thc Board bf Educ at ion of Mon tgomery Coimty, goverr ijng body of the M ontgomery C oun ty Pub licSchools, as lessee ( the "Lessee").

The Lessee des i res to en ter into -arrangeraen ts for the lease pu rchase of various items of E q u i p me n t(defined below ) and has en tered or will enter into one more Acquisition Contacts (defined below) with oneor more V endors (clean ed below). The L essor desires to proiride for the firmeing or ref inancing of theEquipment Cast (defined below) by leas ing such Equipmen t to the Lessee and the Lessee desires to lease suchE qu i pmen t f rom th e Lessor. The Lessee and the Lessor, for th e consideraion sp ecified, agree as follows:

x.efinitions. Un less the carte= otherwise requires, the terms de5a ediathis Section 1 shall ,for all pu rposes o f t h is Lea s ; h ave t h e meanings here in speci f i ed :- "Acceptance .Cer t i f ica te means , wi th respec t to any i t em of Equipmejt , an Acceptanceatesubstantially i n the form of Exh ibi t C here to , delivered in accar r i2nc? w i th Sec t ion 3 hereof- "Acquisition Contact" mean s one or more p urchase orders or contracts with respect to an item ofEq u i pm e n t ."Code" means the internal Revenue Code of 1986, as amended, and the applicable regulationsp ro mu l g a t ed t h e r eund =c c E q u i p n a n n e , means an item con s tit u ti n g p er s O n i proper ty des enibed gen=ally in Exhibit A hereto,together wi th any an d al l additions and attachmen ts t h r t r u , t o (except as oche w ise provided herein),difications T iupeplac5nae--and , pa r t . , ,- f a c r e a f - a n c L -subsiitutions_thezcfor m ; provvrlPrl , T n w w v ar,..thiatthe tern 'Equipmenf'.shall n ot at.any time tuclu de any such property theun=cumbered title to which 'hasbeen fu lly acquired by Lessee p ursu ant to Section .10, Section 17 or Section 19-of this Lease.

:Equipm ent Cost" mean s, with respect to an i tem of Equipmen t, ei ther the purchase price orprepayment .option price, aA the case may be, payable to the rt.;speu'O.vo Vendor under the applicableContract(s), which Equipment Cost shall be payable in accordance with the temps and conditionsof the Acquisition Contract. In no event shall the Equipment Cost for all Acquisition. Contracts exceed$89,802,753.00.

"E qu i pmen t Gr ou p" mean s t he i tem o r i tems o f E qu i pza= t de s ign a t ed f rom t i me - t o t ime b y L es s eeas an Equipment Gr ou p tv i wh i c h a r e de s c r i b ed in an E qu i pmen t S c hedu le , a n d w hi c h a r e b e i n g '-o r wi l l b eleas ed wi t h an op t i on t o pu r c has e b y L es s ee pu r s u an t t o t h is L eas e : An E qu i pm en t G r ou p c on s i s t s o f a l l o fthe particular items of Equipraoat listed vu any si 1e pdge or like-numb ered set of pages or - Exhibit A midso designated as an Equipment Group.


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``Equipment Location" means, w ith respect to an item o f Equipmen t, the location of that Equipmentspecified in the applicable Acceptance C ertificate mad on Ex hibit A hereto,"Equipment Schedule" means a schedule consisting of the separate but Bice--nu Thered pa ges ofExhilyit A and Exh ibitB hereto which have been corapl nted with respect to an Equipment Group and executedby Lessor and L essee as indicated herein."Event of D cfaalt" means any Event of Default specified in Sec on 2a h ereof ."Even t of Nonappropriat ion" ratans the fai ll re of Lessee or the appl icable gove rning body toappropriate money for any Fiscal Year of Lessee sufficiEnt for the payiaitnt of Lease Payments payable with

respect to an Equipment Group in that Fiscal Y ear.`fiscal Year" m eans the 12-month period of Lessee which com mences in each y ear on July 1 andends-on the succeeding June 30, or any other 12-month period adopted as - the fscal year of Lessee and ofwhich Lessee shall give Lessor no tice in wJ"Interest Rate"- means, the interest-Tee _dztezmined in accordance with Section 3(b) hereto andinclicatd on F.xhfbit B to each Equipment Schedule."Lease" mean s, with respect to each Equipment Group, this Master Equipm ent Lease PurchaseAgreement and the Equipment Schedule in which such Equipment Group is described, w hich small constittrte

a separate contract relating to such Equipment G roup, as amended, mod ified or supplemented from t ime totime in accordance herewith."LeasePaym ents" mean, with rasp ct to anEguipment Group, thepayments due frnm Lessee on. each Payment Date as shown on.the Equipment Schedule relPting to such Equipment Group_ Each LeakPaymentshall be denon-iinatP.d into a principal and an interest potion."Lessee" means Montgoraery County Public Schools, a governmental agency of fl - }P; State oflviarylan d, duly org-anied and existing under the Consaadon and laws of the State ofMary land, and i ts

successors and permitted assigns.`Lessor" means Carlyle F inancial Servi6es, T - nr,_, a corporation duly organized and thsting under the-

Caristithnon and laws of the Sae of Delaware, P r I r T its successors and pitted assigns"Net Proceeds" means any ins irance proceeds or condemnat ion, awards paid w ith respect to anyEquipment remaining after payment therefrom of all expenses incurred in the collection thereof."Paym ent Date" means the date upon which any Lease - Paym ent is duc and payable as provided i tithe applicable Equipment Schedu le. .

"Purchase Option Price" means, w ith respect to an Equipm ent Group, as of the payment datesspecified in the Equipment Sch edule relating thereto, the amount so d esignated and set forth opposite eachsuch date in such Equipment Schedule."Tenn of this Lease" or "Lease Term " mean s, with respect to any Equ ipment Group, the periodduring which this Lease is in effect as specified in SectiOn 6.

2


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Vend or" means each o f the man'uf 'acturers or vendors f rom w honaLessee has ordered or w i l l or wi thw h o m Lessee has contrac ted o r w i l l c o n t r a c t fo r the ma nufac tu re , de l ivery and /o r in s ta l la t ion o f theE q u i p m e n t .

2 .x hib i t s . Se t for th be low i s a descr ip t ion of the Exhibi t s to th i s Lea se .Exhibi t A: A s chedule ' e xe c u t e d b y L e s s o r a n d L e s s e e d e s c h i n g t h e i t e m s o f E q u i pm e n t(=sa l t ing an Equipinez t Group being leased by Lessee p l i r s l aa l i t to th i s Lease . Exhib i t . sha l l be amendedf r o m t i m e t o t i m e by at taching consecu t ively m i nd schedules thereto in accordance wi th Sect ion 3 of this

L e a s e ( L e . , A-14, A-1-2, A-1 -3,.et,seq., A-2-1, A-2-2, A-2-3, eta).,Exhibi t B: A schedu le execu ted by Lessor and L essee with respect to a . ia Equipment Group.

and setting forth th e L e a s e Pa y m e n t s (d e n o n a i t a ted into . pr inc ipa l , in te res t , and to ta l ) payable W i t h r e s p e c tto sack Equipm ent Group during the Term of th is Lease , the appl ibable Paym ezat Dates, and the Purchne -OptionPr ices a t w hich Lessee may exercise i t s opt ion to purchase Lessor ' s interes t im such Equipment G r o u pi s accordance w i th Section 17 or Sect ion 19 o f t h i s Lease. Bx}r ibit B shal l be arnaad ed f rom t i ro e to t ine byat taching consecut ively numbered schedules theie to in accordance wi th Sec -Hon 3 o f t h i s L ease (i.e., B-1-1 ,

etsaq,-2-3,. etc.).E x h i b it C : A f o r m o f A c c e p t a n c e C e r t if i c a t e o f L e s s e e i n d i c a t in g t h a t t h e E q u ip m e n tdom ed there in has been de l ivered and insta lled and accepted by Lessee .

All of the Exhibi ts to th is Lease , as am ended, m odifed, supplemented or com ple ted, sha l l be deemed to bea par t o f t ins Lease fo r a l l purposes o f fn-is L e a s e .3 ..e te rm ina t ion o f Equ ipm en t Groups ; Del ivery o fEclu ipm e.n t ; Paym en t o f Equ ipm en t

Co s t s .- - - - (a-y- - -.Le,ssRe inn-entered-iatu-orterintoC o a t a c t r sLingaiding fo r thede l ivery , ins ta l la t icm an fpm f cao la tem_ofEqL:dp:c ipn t .Less ee'sA c x p i s it i o n c o n t r a = i n c l u d e o r w i llinc lude , without l imitat ion, t he r i g h t to p u r c ha s e t he E q u i pm e n t inac;u(ILdanOG With th e tc,rni: thexerrF: T -en'sc3ra g , re e s t o m a ke a va i l a b l e fund i ng f o r the to ta l Egiprnen t Cos t ev idenced by each Eq u ipm en t S c h e r i v i eentered into in conn ect ion wi th this Lease, subject to the provis ions of seedo n 3(h) .

( b )ol low ing the execr i t i cm and de l ive ry o f th i s Lease an d subjec t to t h e p r o v i s i o n s o f S e c t io n3(h) he reof ,Lesscc inn), adv ise L essor o f i t s des i re to l ease Equipme nt con st i ta thag an Equipmen t Ciro - up andof the desi red am ort iza t ion sche dule for such Eqtipment Group. All i tems of E q u i pm e n t - c o n s t i t u t i n g a nEquipmen t Group sha l l -be am or t ized ov e r a l i e pe r iod o f yea rs . Upon agreem ent by Les sor and L es see a sto the composi t ion of any such Equipment Group and such am ort iza tion schedule , Lessor s h a D - fu rn ish toLC'S= a - p r op os e d E x h i b i t A re la t ing to such Equipmen t Group com ple ted insofa r a s pos s ible and a fu l lycom ple ted Exhibit B re la t ing to such Equipmen t Group. The aggregate Equipme rr i C o s t o f a l l it e m s o fEquipment cons t i tut ing an Equipmmeut Group shal l equal the aggregate principal per don. of the LeaseP a y m e n t s p a y a b l e w i t h r e s p e c t t o s uu l i Equipment Group, which challh,. girtort-i7nri in a c c o r d a n c e w i th th einsfractions of Lesee , a s ageed to by. Les so r . The in te re s t por t ion o f each L ease Paym ent payab le wi thr e s p e c t t o a n y s u c h E q u i p m e n t G r o u p s h a l l b e in d e x e d t o t h e a v e r a g e M a r k e t D a t a " A A A "seal; b a s e d o n th e scale a s publ ished f ive ( 5) bus ines s days p r io r to the day o n w hich the famdbig for anE gi p me n t G r ou p t R ke s place and t o be de , tenm i ned i n accordance w i t h t he fo l l owi ng schedu l e : .

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M - M D " .1 k A . .1 6.."Termverage Life2 yea rs . . .. +0,94 to 1.5 year3 years +0.84 to 2 year4 years,,+0,95% to 2 .5 yea r5 years+0 ,95% to 3 year6 years; ...0.99% to 3.5 year7 years. . . .. .+1 ,07% to 4 ye arUpo n determ inat ion of the ap plicable interest ra te, the Lessor shall inser t such ra te z the space"Interest Rate" on the applicable page (s) of Exhibit B fo r such E quipment g roup and p rom pt lycomplete Exhibit B using such interest rate to calmilste the Lease Paym ents payable with respect to suchEquipment G roup. On or after June 25, 2007, Lessor may submit a written request to the Lessee to reviseth e index as shown abo ve, A ny such waif en request subini t ted by W e L essor mus t inc lude w r i tt endocumentation - in support of such change. The Lessee may accept or reject any suclareqaest, of its rliscretion_(c ) Lessee sha l l o rde r t he E q uipment c ons t i tu t ing a n E q uip ra t Group f rom t he a ppropr ia teVendor-or VbIlLICITZ.-(d ) Lessee will cause the elonging to an EqtHpm ent Group to be delivered to Lesseeat the applicable Equipment Locations Ifnotprovided form the Equipment Cost ofsuchEquipmmt, Lesseewill pay all trauspartation and other costs, H . any, incurred in connection with the delivery of the EquipmentLessee wil l accept the Equipm ent as and when ea ch i t= thereofhas been iv=-41 and is operat ional , or inth e even t that the V endor allows a pre-ac ceptance test period, as soon as the test p.od has =pired.(e ) immediately following acceptance of any Equipment, Lessee will request that payment bema cIF: to the applicable Vendor or, in the event Lessee has al ready rligaP. p a y m e n t o f t h e = r e sp o n d i n gEquipm ent Cost to the applicable. Vendo r, on a reimburseme nt basis to The Lessee, byforwarffing to Lessor- - a - p a y M e i t t- i tq u e s t - t h a t in c l a d e s _ t h e . f o B _ o w i n g _ . _

( 1 )true copy of the Vendor's statement or invoice;(ii) in the even t Lessee i s seeking re im bursement fo r payment ma de to a V endor ,evidence that Lessee has paid the applicable Equipment Cos(ii i) a copy of the bill of sale for any component of the Equipment for which a bill of salema y be del ivered;( i v ) a true copy of the applicable purchase order,(v ) the nzme and address of the applicable payee (Vendor or Lessee); and(v i ) an Acceptance Cert i f i cate is sulistznEr.ily the fo:ra set forth in Exhibit-C hereto.

. ( f )ubject to com pliance with the preceding subsection (e), Lessor shP1l make payment of theEquipm ent Co st within seven (7) business days following receipt of a pa yme nt request in accordance with. the preceding subsection (e).

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(g )n the event Lessee desires to refiTiance the Equipment Cost of any Equipment otherwisesubject to another lease or similar age ement pursuant +.0 this Lease, Lessee will rep est th.2 paym ent be madeto the applicable lessor, trustee, escrow agen t or other provider or, in the .. e v e 7 a t Lessee has a l ready m adepaym ent of the corresponding equ ipment acquisition price to the applicable lessor, trustee, escrow ag ent orother provider, on a reirribursement basis to Lessee by forwarding to Lessor a paym ent request that includesth e followhig;a copy of the lease or other a,sreenlent evidencing such equipment acquisit ion price;

(ii)the event Lessee is seeking reimbursem cnt for .paymen t made to a 'Vendor ,evidence t h a t Lessee has paid the a pplicable equ ipment accr.l isition price;( H i )atisfactory evidence that the prcvions I ess or, trustee, escrow ag ent or otherproviderhas released or will release all of its right, title and interest in snrh Equipment uponpayment of the.applicable equipment acquisition price (which sa t i sfac tory evidencemay include the escrowing of the necessary documents w ith Lessor , Lessee or anythird party);

( iv) the name crf, address and payment instructions for the applicable payee (Vendor O rLessee); and(v ) a Uniform. Com mm rial Code f inpr icin .g s tatement or amendm ent with respect tosuch - t h p . Equipm ent bf . .L2 .3, ref inanced . Lessor shal l be responsib le for f i l ing anysuch financing statement or mn-tnr9-nicrrt at it s cost.

notwithstanding the provis ions of subsection (f) above , Lessor and Lessee m ay ra t rt - nally agreewriting that Less or shall make paym ent of any payment request provide_. ,d for in this subsection (g)at a specified nate,_place and tim_e, provided that pro - visions of clame...s- a) are complied with to-the4casonable -satiori nfThe_Less.u.(h )he initial period daring w hich funaing for Equ ipent Costs slaall be avai lable imde -r the

provisions of this Lease shall end on that date which is six (6) years from the date of emecution and deliveryfir 'this Lease (which shall be evidenced by the Exc...oution Date set forth on the silatare page to this Lease).Lessee, at Lessee's option, shall have the right to extend the period of fonri ing avai labi l i ty upo n the sametr - r i - ns and conditions of this Lease. Lessee shall provide the Lessor with written notice of its election toextend the'periodpf finding availability not less than thirty (30) days pr ior to the expira tion of the or igina lperiod of f inding availalUity or the frst extension period, as the case mayb e. Lessor shin have trcn (10) days. from the date of such notification to accept or reject such an extension is - ccrE.ting if Less or accepts any suchextension, Lessor and Lessee shall enter into an amenrim Ent ' to this Lease evidencing such extension. .

4.imi ta t ion on W arrant ies . (a ) Lessee acknow ledges and ag rees tha t the Equipm ent i s ofa size, design, and capacity selected by Lessee; that Lessee is satisfied that the Equipment is suitable for itspurpose; Lessor i s ne i ther a marrafac t rxer nor a Vendo r of the Equipm ent and tha t T7SSOR H A S N O TM ADE, AND D OBS-NOTEDEREBY M .AICE, ANY REPRESENTATION, W.A_RRANTY, OR COVENANT,EXPRESS ORB/21_31ED, WITH RESPECT TO THE MERCEANTABILITY, CONDrELONS, QUALITY,DURABILITY, DESIGN, OPERATION, FITNESS FOR. USE, OR SUITABILITY. OF TEE EQUIPM ENT. .MI ANY R E SP E C T W HAT S OE VE R .


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(d) The obligations of Lessee to =Ire the Lease Paym ents due with respect to any EquipmentGronpin any Fiscal Year for which this Lease is in effect shall constite a eurent expense of Lessee for such.Fiscal Year and shall not cons -ante an indebtedness of Lessee within the meFoing o f the Constitution an dlaws of the State of M aryland.

(e ) Except as provided in Section 8 hereof, the obligation ofLessee to make the Lease Paym entsrequired hereunder shall be absolute and unconditional in. all events. Notwithstandiag any dispute betweenLessee and Lessor or any other person, Lessee shall make all Lease Paymmats required herein - der when dueand shall not withhold any Lease Payznentpending fr-aresolution of such dispute nor shall Lessee assert anyright of set-off or counterclaith against its obligation to make such Lease aym ants required under this Lease.Lessee's obligation to make Lease Payments relating to an :Equipment Group dining the Lease Term shallnot be abated through accident or mi - Foreseen circrmstances.

8 .onappropriation. (a) Upon an Event of Nonappropriation rela tion to any particularEquipment G roup, Lessee shall have the right to terminate this Lease with respect to such Equipm ent Groupas of the end of the then currentFiscal Year. Lessee shall deliver written notice to Lessor of any suchtermination within thirty (30) days following the date of which Lessee has knowledge of such Event ofNonapproptiatim, speeifying the ;ff ec. - ve date of such tenni:nation (which oast be the end of the then currantFiscal YeEr), but in no vent later than the effective date O f atidit 715.:tIctaitt oflesseefto ,eve - thenotice required by this subsection (a) shall not give rise to or extend Lessee's obligation to mak e the LeasePayments payable with respect to such Equipm ent 'Group except to the extFmt provided in subsection (b)below. In the event of a temain.adon of this Lease with respect to any Equipment Group as provided in thisSection 8 , Lessee, at its cost, expense and risk, agrees to promptly and peaceably deliver the Equipmentconstituting such Equipment GrOup to Lessor -withal:I:tine:In:Hag any other or additional costs or liability underthis Leas; except as provided in subsection (b) below.* C o )ollowing an E vent ofNana -pplupri2.fion and the election by Lessee-toJ.n.taate this Leasewithrespect to the applicable Equipment G roup, Lessee shall natbe obligated to pay the Lease Paynam a- due=under Telating LtaLauchaTaipnient Grauszxc ept to the extent funds have. been appropriated for si -thpurpose and in no event beyond the date on which this Lease:terminates for nal:appropriation w ith respectto suchEquipment Group; provided, however, w ithrespectto suchTquipment Group and any allsums whichhave been appropriated previously for the purpose of =LPicing the Lease Paym ents payable with resnect tosuch Equipment Group but which have not been applied for such purpose as of such date, shall be paid.(c) Notwithstanding anything in this Lease to the contrary, the provision of this Section 8 shall

survive termination of This Lease.9.epresentations and Coven ants. (a) Lessee represents and covenants as ofthe date hereofand at all times during the Lease Term that:Lessee is a body politic and corporate created under the C onstitution and laws of the Stateof M aryland;

the execution; delivery and perfoilLance b y Lessee of this L ease (including the Exlaibitshereto) has been duly authorized by all necessary action on the part of Lessee;the entering into and performanc e of this Lease w ill.not violate any judgement, order, orregulation, applicable to Lessee or result in any breach of, or constitite a default hereunder,

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(ix)

(x)

(xi)

or except a s otherwise expressly provided this Lease, result in the creation of an y lien ,pursuant to any indenture , mortgage , deed of trust, bank ?can, credit agetment or otherbastromen t to which Lessee is a pa r ty cr by which i t or its assets may be bo unt

. (iv)here are no aetiouz, suits or proceedings pending or, to the kno wledge ofLessee, farea tznedagainst or affecting Lessee in any Gault or before any governmental commission, board orauthority, which, if adversely cleterraiTit-,d, will have a materLa l, adverse effect on the abilityo f LeSSeC to perform its cbl4g4os under this Lease;(v ) the Equipment is person al property and when . subj ect to us e by Lessee, will not be or beco mefixtures - under the law s of the State oflvf2ry.1. . . a n d ;(vi) Lessee has observed an d com plied wi th a l l applicable externa l or in te=al public biddingprocedures regarding the award cf the transac tions co ntemplated in this Lease;(vii) Loss ee has prepared and included in i ts budget for the current Fiscal Year a request for idsto_malrethe_Lease P ay -47c!.4s and any other amounts payab le he r e rnder d r z ing such F i sca lYear(viii) the use of the Equipment by Lessee is essential to Lessee's proper, efficiant an d econ.ornicoperation;

no p ort ion of the Equipmen t wil l be used cFrrec t ly or indirec t ly in any t rade or businesscarried on by any person other than. Lesse; except as o therwise erpa - P.sRly permitted in thisLease;except as otherwise epressly permit ted in this Lease, no por t ion of the Equipment will be

c r i rg ani ect ion 501 (c) ._ ( 3 ) o f th e Code;Lessee will file or w ill cause d to be filed Forth - 81I38-G/GC relating to - this. Lea se aid eachEquipment S chedule at the tinies and in the forms r , -,qraired by the .C ode.The Le ssee covenan ts that it . w . i l lnot perm it equipmen t with an acq uisition price of morethan five percent of the principal amoun t set forth in ExhibitA o n wh ich such equipmen t islisted to he used in aprivate bro:ness use (within the meaning of S ection 141 (b) of the C ode)at any time during the period tha t be gins on the la te r of the date the Exhibit A is executedor the date the equipme nt is placed in se' vice, and ending o n the ea rlier of the last date of thereasonably expected econom ic ., l ife of such e quipment or the last date any payments are dueunder such E xhibit A. Th e lessee coven ants tha t i t will not crea te an y sil l - king funds orpledged finds (within the mean ing of - Income Tax R egulat ions sec t ion 1 .148-(b)) except fora fund or funds that c onstitute a bona fide debt service fun d (within the meaning o'fincomeT ax Re ations section. 1.148-1(b)).. .

10 .itle_ Mixing the Lease T erm with respect to any Equipment G roup , and so long as Lesseeis actin default under S cc Li on 21 with respect to such EquipmentGro up, legal title to such Equipment Groupand a ny an d al l repairs , replacera entg, substi tut ions and mo dificat ions to i t shall b5 in Lessee.. Upon.terminat ion df this Lcasewithrespect to any Equipment G roup pursuant to Sect ion 8 or upon the oc currence-8


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(d ) During the te rm of th is Lease , the Lessee covenants tha t i t shal l keep a oon:Tie te R T I d a ccuraterecord of al l ass ignmen ts in form n ecessary to comply w i th Sect ion 149(a) of the Internal Revenue Code of1986, as am ended.21.vents ofD efaul t The fo l lowing sha l l be "Even ts of1) efaul f under this Lease w i th r e spec tto any Equipm ent Grou p and the Equipme nt Schedule relat ing thereto, dt izte te: .ras ( Sven t s D f D e - f 2 ui t" and" d e f a u l t" 4 : 1 2 , 1 1 m e a n , when ever they are used in this Lease, wi th respect to any Equipm ent Group, any on eor mo r e of the fo l lowing even ts :(a ) Fai lure by Lessee to pay any L e a s e Paymontieciairad to be pa id under th i s Lease , wh en due ,respect to such Equ ipment G roup a t the t ime spec i f i ed here in and the con tzpa t ion of sa id fa i l . re for aperiod of fifteen (15) days,(b) Fai lure by Lessee to observe and perform an y coven ant , condit ion or agreem ent on i t s par tto be obse rved or performed-with respect - to such Equipment , Grou p, other than as refezred - to in : subsec t ion(a) abov e, for a period of thirty (30) days after writ ten notice spec ifying suc h failure and requ esting that i tbe remedied has been given to L essee by Lessor , unless Lessor shall agree in wri t i rg to au ex tens ion o f sucht imepriortoi ts expirat ion, or i f the Lessee ofae rwise beco m es aware of therovided, how eve r , th a t

if t h e r- F -ii-ole state d in the no t ice C ia t io t be- - - - .C -iii;ected Within - the app l icab le - p en - c d . ; - Le s s o r - wil l -notunreasonab ly withhold i ts consent to an extension of such tun e i f conec t ive ac t ion is inst i tu ted by Lesseewithin the ap plicable period and diligent ly pursued unti l t he d efault s m u : m a t e d _(c ) The f l ing by Lessee o f a voluntary pet i t ion in bazdauptcy, ar far lure by L essee prom pt ly tol i ft any exeput ion, garnishment or a t tachm ent of such co nsequen ce as wo uld impai r the abi l i ty of Lessee: tocarry on i ts governm ent funct ions or adj - adica t ion of Lessee as a IcRnkrupt , or ass iTr - n ! . .-a t . by Lessee for thebenefit of creditors, o r - the entry by Lesseegre-Tnen t of courpoi on with c reditors , or the approva lby a cour t of com petent jur i sdict ion of -a . pet i tion appl ia thle to L essee i r ranyproceedia ins t ita ted - under_tlmprovisionS: of the United States BankruptcyCode, as a:me -n(15d, car undex,m:Eysimilaz acts whielimay hereafter

be enacted:( d )he de temina tion by L esso r tha t any repre sen ta t ion_ made by Lessee was un t rue in anyma ter ia l respec t a t the t im e th is Lease was executed or a t the time any Equipm ent Schedu le he re to was

executed.22 .em edies . (a) W henev er any Event T iDefaul t re , fe r red to in S ec t ion_2 1 s l3 have 'happenedand be con t inu ing wi th respec t to any Equipm ent & C a p Less= s.bal.11), -- ive the t ight , at i ts opt ion an d withoutany fu r ther demand or not ice , except as e rpressly p rovided be low, sub jec t to the provi si on s o f Se c t i on 8hereof, to take one or any combinat ion of the follow - g reme fi ial s teps:(i) by wri t ten not ice to Lessee declare a l l remaining Lease P aym ents due wi th respect to suchEquipm ent Group dur ing the Lease Tem to be imm ediate ly due andpayable , whereupon the

same sha l l becom e imm edia te ly due and payable ;by w ri t ten no t ice to Lessee, reque s t Lessee to (and Lessee agrees that i t shal l ), a t Lessee ' sexpense , p rompt l y r e t u rn t o L es sor t he Equ ipment be l ong ing t o such Equipment G roup i ngood repai r , working order and condi t ion, and thereaf ter Lessor m ay be e i ther (A) operateor (B) sell, lease o r r n q l , ; - F . - , o t h e r d i s p o s i t io n o f t h e Equ ipmen t b e long i ng t o s u ch Equ ipmen tGroulp for the account of L essee, holding Lessee l i able for a l l Lease Pay m ents payable wi th

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respect to such Bcpatpm ent Group due to the ef fect ive date of any such sale , 1eas t.g or otherdisposi t ion and for the di f ference between the purchase pr ice , rental or other amounts paidby the pu rchaser(s) , lessee(s) or o ther beze5e ia ry( ies) of such d ispcsi t ior i pursuant to suchsale , leas ing or other dispoi t ion and the Le ase Paym ents payable b y L e s s e e h e r e u n d e r w i thre spec t to such E qui pment Group; andexercise any other r ight , remedy or p r ivi lege w hich ma y be ava i l ab l e to i t under appl iOablel aws o r p roceed by app rop .a te cour t ac t i on t o enforce t he t e rms o f t h i s Lease w i t h_ r e spec tto s u c h E q u i p m e n t G r o u p o r to recover dam ages fo r t he b r each o f t h i s Lease o r t o r e sc ind .- f h i g L e a s e as td any or P 1 1 of t he E qui pmez t be l ong i ng to such Eq u i p :a m : i t Gr a pp .

( b )he ne ve r a ny Eve n t o f De f a u l t r e -fe red to in subsec t ions (b) c r (d) of .SeGO D 21 sha l l ha veoccurred and be conf i rming wi th respect to any Equipm ent Group, L e s s o r s h a l l h a v e t h P r i gh t , at i ts opt iona nd w i thou t a ny fu r the r .de ma nd o r no t i c e , sub je c t t o t he p rov i s ions o f S e c t ion 8 hereo f , to p roceed b yappropr ia te cour t ac t i on to enforce the t e rms of th i s Lease wi th respec t to such Equipment G roup or to recoverdam ages for the breach of this Lease_23 .a t e u r g e s . W h e n e v e r a n y E v e n t o f D e f a u l t re f e r r e d t o in S e c t i o n 2 1 ( a ) S h a l l h a v ebappen ed and be con t inuing wi th respect to anYlcl i i i -Pdi en t - G ro - up; Les sor - s l eh a y e - f h e t - r i g h t , a t it s o p t i o nand w i thou t any f ' he r demand or no t i ce and w i thou t p rov i d i ng a wr i t ten i nvo i ce t o L essee , t o r equ ir e a l a t epa ym e n t c ha rge a c c ru ing a f t e r t he f a h b us ine ss da y o fnon-pa ym e n t a nd c o r r t i re - l e n t ]. suc h l a t e pa ym e n ti s received by L essor equal to four percent (4% ) of the del inquent am ount , and Lessee s i inT1 be obl iga ted topay the la te charges of the t ine tha t the paym ent i s made; provided , howev er , tha t th is Sec t ion 23 sha l l notbe app l i cab l e i f or to the ex ten t tha t the app l ica t ion the reof w ould a f fec t the va l id ly o f th i s Lease . Forpi rp oses of this S ect i on 23 , the teem " Iv ess day" me ans any day o nwh ich b anis in the States of M arylandand M iss iss ippi , and the Federal Reserve System , are open and opera

24 -ot ices . A l l n o t ic e s t o b e g i v e n = d e r - th i s Lease sha l l -b e m a d e in wr i t i .s a n d 17ail td b y_cert i i le imaa r re tunireze ip t_reque=1 gr may be de l ivered by overn ice . la de l ivery se rv ice or hand de l ivery(with an azl ino w lecignent) to the other party at i ts address set forth below or at such ad dress as the party na" ayprovide in wri t i rT , f rom t ime to t ime. Anj i such not ice del ivered - 1 3 y cm - rb eed m ad , re tu rn rece ip t reques ted ,sh.a l l be deom ed to have been received Eve (5) days sub equent to mai l ing, and any such not ice del ivered byovernight de l ivery service or hand de l ivery sha l l be deerned_to have beenrece ived w hen. the ae lmowledgm enttherefore is executed.

Jf. to Lessee: Board o f E duca t ion- of Mont gom ery C ount yDi v i s ion o f C onf ro l le r , Room 156850 Hangu i fo rd D r iveRoc kv i l l e , Ma ry la nd 20 8 50Attent ion: Rober t J . DoodyPhone : 30 1-279-3115Fax: 301-279-3031Em a i l: b ob doody(B.mc usmd .o rg

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I f to Lessor : Car ly le F ina ncia l S e rvices , Inc .325 Nor t h S t . Paul , Sui t e 800 D a lla s , Texa s 75201Attention. : P r e s i d e n tPhone Number: 214/953-8860Fa x -Nur-Ibex: 2141953-4072e mail ; bf r i ec l i nanr a i f i r s t s w.coi n

i f t o T r u s t e e : D e t r t s c l ie B a t i k N a t i o r a l T r u s t C o z u p Pn y , a s t u s t e e6810 Cr a m ple r Blvd. , S uite 100D live Bra nnh, hEssi s s ippi 38654A t t o r a t h m : D e n n i s D . G i l le s p i ePhone Number, 662)890-0113Fax Number . 662/890-0114e m a i l : dennis-aillesoinZdh.com25,e a d i n g s . A ll hea dings co nta ined he re iD a re fo r the co nvenience o f r e f e r e n ce o n l y a nd a ren ot i n ten cled to def i n e o r l i mit th e s cope o f =3 7 -prov i s i on of th is L eas e .26.o v e r n i n g L a w . T h is L e a s e s h a l l b e c o n s t r u e d i n a c c o r d a n c e w i t h , a n d g o v e r n e d b y t h elaws of , the S ta te o f Mary lan d.27,in a ncial S t a t e m e n t s ; N o t i ce o f M a t e r i a l E v e n t s . L e s s e e a m t e s t o fnr- ni s h L e s s o r P IM -R a i

ivanciai s t a t e m e n t s of Lessee N v i - f i r o n e h u n d r e d a n d t w e n t y ( 1 20 ) da y s a f t e r t h e t a d o f L e s s e e ' s F i s c a lY e a r

28.Entire Agr e a r n a n t ; Waiver, "rni L e a s e , t o g e t h = w i t h- the ErEbit s hereto, as M ich R ' Z ' ' h i b i t Sar e completed, e x e c u t e d a n d d e l l s e y e d b y Lessor and Lessee, constitutes -the entire a T e e r n e n t b e L w e e n - t h _ e

_ _ _F a d d e s _ w i t l izespect.0 - T h e de FRft-Dffh (1.thisrLease andthe , its herd, ce as expresslyp r o v i d e d h e r e i n , s h a ll n o t b e m o d i f i e d . , a m e n d e d , a l t e r e d , o r c h a n g e d e x c e p t w i t h t he w r i t t e n c o n s e n t o fL e s s e e a n d L e s s o r . T h e W a i v e r by L e s s o r o f arry - breacliby - Less6e of a n y t e r m , c o v e n r n t o r condition hereofs ha l l n ot opera te as a waiver of any subsequent breach thereof

2 9 _cverability. In th e ev en t an y pro v i s ion o f th is L eas e s h al l be h eld i n v ali d o r - u n e n f o r c e a b l eby any c o u r t o f c o m p e t e n t ju r isdict ion , such holding s ta l l no t invalidate or render =enforceable any -otherprovision h e r e o f -30.urther Assurance and Corrective Instrument; Ludenanificat - i o n. L e s s o r a n d L e s s e ea g r e e t h a t t h e y w i l l, f r o m t i m e t o t i m e , e x e c u t e , a c l o a o w l e c i ge a n d d e l i v e r , o r , ca u s e t o b e e x e c u te d ,a ckno wledged a nd de l ive red, such snppl - em euts he re to a nd such fuz 4 -L h e r . i n s t n un e n t s a s r a a y r e a s o n a b l y b erequired for correcting any inadequate or incorre ct d e s c r i p t i o n of th e Equipment hereby leased or in tended30 td be, or for r i t h a l - c c . r i s e carrying out t h e e x p r e s s e d i n t e n t i o n o f t h i s L e a s e ; p r o v i d e d , ho w e v e r , t h a t t h eprovisions . o f this Section 30 shall not require either party to this Lease to deliver an opinion of counsel asto the due , a utho r iza t io n o r exe cut io n o f thi s Le a se , a ny Exhibit he re to , a ny Equipment Schedule herc'to o rziny A cceptance Cer tificate r e l a t i ng h e r e t o .

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3 1 ,zemtinD in C uxtg.parts . This Lease way b e s inaultaaeously executedcouatzpaits, each of w hich shall be an original and ift of w hich shall con titate but oaa and the C a n o ei 3 2 $ t a1 1 1 1 0 1 1 t ,

3 2 .egistration, Lessee herby d esignates Lessor to be i ts agent for the purposes ofr n a j i l t a i n i t i z a regis tgt jon system idpntify-inz, th.e ownership of itterests in and to this Ltase, and Lessorh e r e b y a c c e p t s i ts duidos as agent hereunder.[ S IG N A T U R E S A P P E A R I N G - O N N E X T P A G E . ]

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B y:ame: s 0 1 - 1 4 7 1 7 , .Cox

Prsic i*I i tDairy L. FriedmazPres ic l= t

LN W ITNESS W IEER EO F, Les sor azd Les see Lave execu ted th i s M as te r Equ ipment Lease PurchaseAT:ten:cat as of the d a te fa -Et wr i t t en above ,L 4 S S H EE S S O R :BO ARD : O F I :DUC A L IO N _ O FM O N T G O M E R Y C 0 'U N T YA R Y L E F L N A N C I A _ T ., staviCES, I N C ,

T i t l e : Super iu tend .mai

17

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