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CITY OF OGDEN EMPLOYEE COMPUTER PURCHASE PLAN Objective The objective of the Employee Computer Purchase plan is to elevate the computer literacy and productivity of City employees through encouraging the purchase and use of personal computers and software. The following guideline will be applied: In an effort to meet the objective of this program the City has determined that equipment and software funded through this program must be substantially equivalent to the PC equipment and software currently in use at Ogden City Corp. Eligibility Any full-time benefit eligible City employee (non-merit, merit or classified) who has completed his or her introductory period, is eligible for a loan under this program. Participants must agree to comply with the requirements and provisions of the plan. Participants will be eligible to make an initial purchase and/or to finance upgrades to their system through this plan not to exceed the original loan limits. Loan Limits Each loan is interest free with repayment calculated on a 52 pay-period basis. The maximum of $2000.00 will be loaned for qualified systems (See System Configuration Requirements below). Any upgrade(s) to a system purchased under the plan must fall within the original maximum loan amount of $2000.00. Loan Repayment Loan repayments will be made through payroll deductions on a bi-weekly basis. Payroll deductions are determined by taking the greater of 1) amount financed, divided by 52 or 2) $10.00. Loans are due and payable in full upon termination of employment for any reason. Loans will be made on a 52 pay-period basis, but may be repaid earlier at the participant’s request. System Configuration Requirements The following are minimum requirements of systems eligible under this Program: Base System / Desktop Intel 3.0GHz, 4GB RAM, 320GB HDD, KB&M –OR– equivalent Operating System Microsoft Windows 7 (Home or Pro) Business Package MS Office2010 (Small Bus. Ed., Pro, or Student & Teacher) Monitor 17” SVGA, but not larger than 24” (No TV Tuners) Printer Must support use of 8.5” x 11” plain paper (inkjet or laser) Anti-Virus/Anti-Spam Software Currently supported City package (2 year sub) –OR– equivalent Surge Suppressor 6 outlet required or UPS Prohibited items under this plan: The following classes of software and hardware may not be included in the amount financed under this Program: Systems configured from component parts (no home built systems from parts) NO game or entertainment hardware or software will qualify under this plan. NO Digital Cameras, Video Cameras, TV tuners will qualify under this plan. NO Plasma or LCD Monitors over 24” will qualify under this plan. ---PAGE BREAK--- Other items deemed NOT substantially equivalent to the PC equipment and software currently in use at Ogden City Corp. All system configurations financed under this Program are subject to approval by the appointed Information Technology Division official. It is encouraged that system components be manufactured by established “brand name” companies Dell, Gateway, HP/Compaq, etc.), but this is not a requirement for eligibility. In order to facilitate this Program the IT Division will maintain a list of vendors which have submitted approved system configurations. Participants in this Program may choose one of these “approved systems packages” or they may choose a vendor and package of their choice subject to IT approval. Upgrades Upgrades May be purchased under the plan to enhance home systems; provided the minimum configuration requirements are met and original loan limits are not exceeded. Upgrades financed under this program shall be limited to replacement of major sub-systems (Monitor, Printer, and Base System Unit) Limitations Loans are given out on a first come, first served basis. If requests exceed current funds availability applicants will be placed on a waiting list in application-date order. When funds become available through loan repayments, the participants are notified in order of appearance on the waiting list. If an employee wishes to be placed on the waiting list, he or she must contact IT at ext 8720. Procedure Once an employee has been notified that his or her name is next on the waiting list, the following procedure is to be followed: 1. The employee needs to select a pre-approved system or may shop around and find the system they wish to purchase. If the system and vendor is not one of the “pre-approved” systems the employee will need to obtain and submit a quote sheet from the vendor detailing configuration to IT for approval. Any questions on system hardware or software eligibility will be submitted to the IT Manager for Final decision. All Configurations are limited to one vendor for hardware and one vendor for software (The City will not issue more than 2 checks for any systems financed under this program). 2. Complete all required forms provided by the IT division including the Loan Agreement and Security Agreement. 3. Return the configuration information form, PC Loan Checklist, signed agreements, proof of insurance, and copy of receipt showing $25.00 fee payment to IT. 4. IT will determine if submitted configuration meets program requirements. Should IT determine that the submitted configuration does not meet program minimum requirements or guidelines, the participant will have one opportunity to re-submit a revised configuration for approval. When submitting system configuration for upgrades, the burden is upon the participant to demonstrate that their existing system components and software meet the minimum requirements. Specifically, participants must be able to show positive proof of software licensing compliance. 5. When IT determines that the configuration meets the requirements, IT will prepare a Purchase Order and forward the information to the Purchasing and Finance offices. The signed Loan Agreement will be sent to the Recorders office for routing. 6. Checks should be available within 3 weeks and the employee will be notified with the check is ready. ---PAGE BREAK--- Loan Agreement A written agreement between the City and the participant is required. The Loan Agreement will outline the responsibilities of the participant, terms of the agreement, payroll deduction arrangements, and other conditions of the plan. Also execution of a Security Agreement and Financing Statement by the participant granting and perfecting a security interest in the personal computer, related equipment and software financed via this program. Restriction on Transfer or Reassignment Each participant in the plan agrees that usage of the equipment and software made available under this plan will be restricted to the participant’s own use and that of his or her immediate family. Any reassignment or transfer of the equipment during the period of loan repayment violates the agreement and cancels the right to participate in the plan. Potential Income Tax Consequences Participants in the plan should be aware that there may be potential tax consequences because the interest is foregone by the City. It is the participants’ responsibility to consult with their individual tax advisors for questions about tax liability. While we expect the IRS will treat the loans under the plan as falling within a de minimis exception, which applies to small interest sums. We advise participants to refer questions to their tax advisor. Protection against Damage and Theft Participants in the plan should ensure that their home insurance policy provides adequate protection of their equipment from theft, fire, flood and lightning. The City does not assume any liability for damage or theft of equipment. Participants will be required to provide the City with satisfactory proof and evidence of such insurance coverage (A copy of the first page of your insurance policy, the Declaration page, is sufficient). In the case of the participant not having sufficient insurance coverage, the participant is aware that any damage or theft of the equipment within the two year period is solely the responsibility of the participant. The bi-weekly deductions from payroll will continue until the loan is paid in full. Software Please be aware of the restriction and ban from using software from the workplace on your home computer. The IT Division has the authority and responsibility under Ogden City Corp. Policy #1413 to insure, where possible, that unauthorized copying of microcomputer software does not occur and shall put in place such controls as are necessary to limit software piracy and viruses. Consistent with this duty, program participants must agree that to purchase and properly license all software for use on equipment while participating in this program. All software in use by Ogden City is a proprietary product of the respective vendor (e.g. Microsoft, Corel, Adobe, etc.) and is protected by Copyright Law. Ogden City does not allow use of software purchased for use at the worksite to be used at home. Severe penalties can result to the City for any violations as auditing of software on home computers is virtually impossible. For this reason, without exception, you must purchase your own software for use on your home computer. ---PAGE BREAK--- EMPLOYEE PERSONAL COMPUTER PURCHASE PLAN PARTICIPATION AND LOAN AGREEMENT Name Address Department Phone The above named employee (”Participant”) of the City of Ogden (“City”) has been provided a copy of the City of Ogden Employee Personal Computer Purchase Plan (“Plan”) and hereby elects to purchase a personal computer and certain related equipment and software (“Equipment”) and participate in the financing arrangement offered under the Plan, and further, agrees to and accepts the following terms and conditions: 1. The price of the equipment to be purchased is and is identified on the attached Specification Sheet. 2. The City agrees to make an interest-free loan to the Participant in the amount of for a period not to exceed 52 pay periods to purchase specified Equipment. Participant agrees to pay an un-refundable loan processing and filing fee payment of twenty-five dollars ($25.00) to the City contemporaneously with the signing of the Agreement. 3. Participant authorizes the City to deduct from each pay period of the Participant beginning until the amount identified in Paragraph 2 above has been paid. Participants may elect to pay the remaining unpaid balance at any time prior to the last payroll deduction. 4. Participants agree not to sell, trade, use as collateral, or otherwise dispose of the Equipment until the loan has been paid in full. Participant also agrees the usage of the Equipment will be limited to the participant’s own use and that of his or her immediate family and any reassignment or transfer of the Equipment subject to this Agreement will result in cancellation of this Agreement. Violation of these provisions will require participant to immediately pay to the City the remaining amount due on the loan. In the event of any breach or violation of this Agreement by Participant resulting in the cancellation thereof, interest will then commence accruing in the unpaid balance on the loan at the legal rate until full satisfaction and payment thereof. Participant agrees to sign and deliver a Security Agreement and UCC-1 Financing Statement in form satisfactory to the City granting a first priority lien and security interest in and to the personal computer, related equipment and software financed through this Agreement concurrently with the signing of the Agreement. 5. Upon termination of Participant from the employment for the City for any reason, the remaining amount to be paid to the City under the Agreement shall immediately become due and payable. Employee hereby authorizes City to withhold from his/her final paycheck, including sick leave and vacation payoff, any amount remaining under this agreement. 6. All warranties and service or maintenance contracts shall be between the vendor and the participant. Participant shall deal directly with the vendor and in no event shall Participant look to the City for any claims relating to warranty, service or maintenance. 7. This agreement may be changed only by a written document signed by the City and Participants, and supersedes any and all written or oral agreements, proposals, and communications concerning the Plan. 8. If either party hereto brings any suit against the other party to enforce any rights under the Agreement, the prevailing party in any such suit shall recover from the other party its reasonable attorneys fess and costs incurred in connection therewith. Accepted Participant City Of Ogden Attest: City Recorder ---PAGE BREAK--- PURCHASE MONEY SECURITY AGREEMENT 1. (hereinafter called “Debtor”) Name for value received, Address Hereby grants to Name (hereinafter called “Secured Party”) Address a security interest in the property described below (hereinafter collectively called “Collateral”) to secure the payment of the principal and interest on and all obligations under a Loan Agreement (hereinafter called the “Agreement”), of the Debtor payable to the order of the Secured Party, in the principal amount of dollars all renewals and extensions of the Agreement, and all costs, expenses, advances and liabilities which may be made or incurred by Secured Party in the disbursement, administration and collection of the loan evidenced by the Agreement and in the protection, maintenance and liquidation of the security interest hereby granted with interest at the maximum legal rates on such costs, expenses, advances and liabilities. The note and all other obligations are herein collectively called the “Liabilities.” 2. The Collateral in which this security is granted is all of the Debtor’s property described below or listed on any schedule attached hereto, together with all the proceeds and products there from, including insurance proceeds. The security interest secures the purchase money from the loan used by the Debtor to acquire title to the Collateral. Description of Collateral: See attached Schedule 3. Debtor shall not transfer, sell or assign Debtor’s interest in the Collateral nor permit any other security interest to be created thereon without Secured Party’s prior written approval. 4. Debtor shall keep and store all Collateral at locations approved by Secured Party in writing. 5. Debtor shall pay the filing and recording costs of any documents or instruments necessary to perfect, extend, modify, or terminate the security interest created hereunder, as demanded by Secured Party. 6. Debtor shall maintain all Collateral in good condition, pay all taxes, judgments, or changes of any kind levied or assessed thereon, keep current all rent due on premises where Collateral is located, and maintain insurance on all Collateral against such hazards, in such amounts and with such companies as Secured Party may demand, all such insurance policies to be in the possession of Secured Party and to contain a Lender’s Loss Payable Clause naming Secured Party in a manner satisfactory to Secured Party. Debtor hereby assigns to Secured Party and proceeds of such policies and all unearned premiums thereon, and authorized and empowers Secured Party to collect such sums and to execute and endorse in Debtor’s name all proofs of loss, drafts, checks and any other documents necessary to accomplish such collections, and any persons or entities making payments to Secured Party under the terms of this Paragraph and hereby relieved absolutely from any obligations to see to the application of any sums so paid. 7. Debtor shall be in default hereunder if Debtor fails to perform any of the Liabilities imposed hereby or any other obligation required by the various instruments or papers evidencing or securing this loan, or if the full balance of the loan becomes immediately payable under the terms of such instruments, either automatically or by declaration of the Secured Party. In the event of any default, Secured Party may, in its own discretion, cure such default and, if it does so, any expenditures made for such purpose shall be added to the principal for the Note. 8. In the event of default, Debtor shall assemble and make available all Collateral at any place designated by Secured Party. Debtor acknowledges being advised of a constitutional right to a court notice and hearing to determine whether, upon default, there is probable cause to sustain the validity of the Secured Party’s claim and whether the Secured Party is entitled to possession of the Collateral and being so advised, Debtor hereby voluntarily gives up, waives and surrenders any right to a notice and hearing to determine whether there is probable cause to sustain the validity of Secured Party’s Claim. Any notices required pursuant to a state or local law shall be deemed reasonable if mailed by Secured Party to the persons entitled thereto at their last ---PAGE BREAK--- known address at least ten days prior to disposition of the Collateral and, in reference to a private sale, need state only that Secured Party intends to negotiate such a sale. Disposition of Collateral shall be deemed commercially reasonable if made pursuant to a public offering advertised at least twice in a newspaper of general circulation in the community where the Collateral is located or by a private sale for a sum equal to or in excess of the liquidation value of the Collateral as determined by Secured Party. 9. All rights conferred on Secured Party hereby are in addition to those granted to it by any state or local law or any other law. Failure or repeated failure to enforce any rights hereunder shall constitute an estoppels or waiver of Secured Party’s rights to exercise such rights accruing prior or subsequent thereto. Secured Party shall not be liable for any loss to Collateral in its possession, not shall such loss diminish the debt due, even if the loss is caused or contributed to by Secured Party’s negligence. IN WITNESS WHEREOF, INSURANCE COVERAGE Insurance Policy provided. See Attached Insurance Policy NOT provided. In the case of the participant not having sufficient insurance coverage, the participant is aware that any damage or theft of the equipment within the two year period is solely the responsibility of the participant. The bi-weekly deductions from payroll will continue until the loan is paid in full. Participant Date ---PAGE BREAK--- ---PAGE BREAK---