t-i 1-`+ F-~ c;~ C7 tft 1=~i tn_ ~.J ~' L_ E s=~ ::i ": i~ i~' EM -(~ F~ f~ C: -(. ... .. _. _ irlYT T; ~i 1. _~ 'i_ i`t E '~..._ ,.. . ~ .. `r ,- r' ~. ~~:~ `T) -: t ': C: i"i TiI C+ .. t..! -~ r;~ i_ 3 l t ti ~_t y CT 'I" : i ::a i"' -- s _ y '- j_+ + ~ a. CJ '. fli c _ f: t:+'t _.. __ _ , ~...:'~'l'p3,r_ n, i._+~''~"~:e Fj~_{.'Tl+::+._C:~ _V t_OiAag1'.=.; ..{j!'.._'r f~'~i31{:.{NTIw .t_'.+E' {: t_!?f. {. ~{nanimo~_~sly approved by a vote of 4-~t-Q3, t:t-,ta lE'cd.5~: c:~'+r~tr~_.c-•± i~d3.~:-,,-t ,F~~ ca.TTr7 ~{.rl.{:~'sC1'r"'].:.:f? ci lct3c[:~r~ttc.'{:•~<.. ~!";~~ t.. .+,~!?.Y'1 'i_'r' I•il.ii:]1i.:J'r' L?.T_!!:j l.. ';.l.l':"!'GV ~ !"@g<':~i.'!.7 i=~Y'' ftr_P !_l :;r E='~:?`r _:l..i~_};;:rY.,._i='C:I ~.. !. r~ {) f" ' cd i'J c?. 4' {:i LS C=' i'3 c:; r - {:1 f ~ - 'i~ ~. , 4'. ,.'. _! a ti~ 4.3 ((1 a-A. ~ Fi ~ ~+ ~y r.?. ~::i ~. F;~ T t:j i _: ra 'I' ~'~'r"' ;~: ). 1. }. ,_,. r•. COMMISSIONERS' COURT AGENDA Rr,OUEST PLEASE FURNISH ONE ORIGINAL AND FIVE COPIES OF THIS REOUEST AND DOCUMENTS "' TO BE REVIEWED BY THE COURT. MADE BY: Bob Denson MEETING DATE: March 24, 1997 SUBJECT: (PLEASE BE SPECIFIC) OFFICE: County Judge TIME PREFERRED: Consider and discuss the approval of lease contract with CAT. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: NAME OF PERSON ADDRESSING THE COURT: County Judge Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: THIS REQUEST RECEIVED BY: T~-IIS REQUEST RECEIVED ON: 5:00 P.M. previous Monday. A~1 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 towards you request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. Order No, 23892 Approval of Lease Contract with CAT March 24, 1997 Vol. V page d7 FINANCING STATEMENT - FoLLOw INSTRUCTIONS CAREFULLY This FMtrtcirq sfatarrrrte i. ptaaantad to fling ptsawrR to the Urtifonn Cerr.rt.toid Cod. and wil rerrtain eHeetlve wkh aR~t ex arw for 5 esre from date of }i A. NAME i TEL ! OF CONTACT AT FILER (optionaU B. HUNG OFFICE ACCT. ! lootbnall URrN COPY T0: (Name and Maiq Addtaaa) I CATERPILLAR FINANCIAL SERVICES CORPORATI 4975 PRESTON PARK BLVD.. STE. 280 PLANO. TX 75093 L D.OPTgNAL DESIGNATgN lH appYeablal: LESSORILESSEE CONSIGNORlCONSMNEE NON-UCC t. DEBTOR'S EXACT FULL LEGAL NAME -insert only one debtor name 11a or tb) - 1a. ENTTIY'8 NAME ~ KERR COUNTY 1 b. INDMDUAL'S LAST NAME caner ueur• le. MAILNG ADDRESS CITY 700 MAIN ST. KERRVILLE 1d. S.S. OR TAX I.D.! OPTIONAL ta. TYPE OF ENTITY 1f. ENTITY'S STATE ADO'NL INFO RE OR COUNTRY OF ENTITY OEBTOR ORGANIZATION 2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME • insert only one debtor name 12a or 2b1 2a. ENT(TY'8 NAME OR 2b. INDIVIDUAL'S LAST NAME NAME 2e. MAKING MIDDLE NAME SUFFIX STATE Tx COUNTRY POSTAL CODE us 78028 t p. ENTITY'S OROANRATIONAL I.D.t, M any 1 1NONE MIDDLE NAME S11F1=1X STATE COUNTRY POSTAL CODE 2d. S.S. OR TAX I.D.! I OPTgNAL 2e. TYPE OF ENTITY 2f.ENTIIY'S STATE 2a. ENTITY'S ORGANIZATIONAL I.O.ar, H any ADD'NL INFO RE OR COUNTRY OF ENTRY DEBTOR I (ORGANIZATION 3. SECURED PARTY'S (ORIGINAL S/P or ITS TOTAL ASSIGNEE) EXACT FULL LEGAL NAME - irtaert only one securod party name (3a or 3b) 3a. ENTRY'S NAME CATEAPILI.AR RNANCIAL SERVICES CORPORATION ~ 36. INDIVIDUAL'S LAST NAME finer ueuc ..,...,, ~ .....~ ....~... - 3e. MAILING ADDREBS CRY STATE 4975 PRESTON PARK BLVD.. ST .280 PLANO 4. This FINANCi~6 STATEMENT Devon the followinS ryps or karm of property: - ONE (1) CATERPILLAR 924 WHEEL LOADER. SN 5NN00967 COMPLETE WITH ALL SUBSTITUTIONS. REPLACEMENTS, ADDITIONS. ATTACHMENTS AND/OR ACCESSORIES THERETO. NOW OWNED OR HEREAFTER ACQUIRED AND PROCEEDS THEREOF. 6. CHECK 1 I THe FINANCING STATEMENT b siQnsd by tM Scarred Prty irvtaed of the Debtor to perfect a eeeuriry imarat 7. H filed in FMrMa (cF~sde one) BOX Ll oral akaedY eubJaet to a eseuriry IMarwt in anotMr juriedktbn when k was broupM IMO thb sut0. or when the Poe lif app0eablel ta' Ion was a ~~ Documentary stamp harped to thi slats, or Ib) in aceordana wkh other statutory provision Isddhional data may be requiredl stamp tax tax rat applieabie 8. REQUIRED SIG IS) ~ 8. This FINANCING STATEMENT is to bsfilsd [for rseordl for recorded) in the REAL ESTATE RECORDS ~ Attach Addendum Ilf plieable) 9. Cheek to REQUEST SEARCH CERTIFICATE(S) on Debtorls) [ADDITIONAL FEEL (optionq All Debtor Debtor 1 Debtor 2 TF. rACE FOR USE OF FILING OFFICER -:ern. $~38•Ci Information ~-turn for7ax-Exempt Governmentat~bligations . unaers.anoe 14!(.- oNe w. ti+S.oYto (Rn. Oe;oeer 19e9) - Sae sgarate Instruetlorrs Eaaref S-] t~ Oearar.ns a/ 7t'nstwry trcerrul Aa+e^~t Serves (Use f otrn a03!!-GC i/ th! issue p/-et K tatrdtt S lOO.000) ReOoKirt Authori Check Aos if Amended Returns U ) Ittue~ s raAte 2 lssul~ s tMlplOlref tdenpfitgtiOA nurgpK KERB COUNTY 3 +'lumptr ir+C i:rta ~ RtOOrt nurn0er 100 [MIN ST. G 19 S Gty or to•n, sate. src i:1P voce 6 Oats of asue V 7 7 NanN of lasoe d CUStP HurnOer Type of Issue {check bo:(es) that applies and enter the Issue Price) 9 Cheese .o: tf obligations are p: or other re~onue antic;pation bonds - ^ ,~~ ice 10 t?ledc ho: if obl;gaaors are i, de forTl of a Rase or insuttment sak > ® I 11 ^ Education - - - S 12 ^' Health and hosp+qt . I3 ^ Transportation 14 ^ Pubtic safety - - - - - - - _ - - - - - 15 ^ Environment (including sewage bands) 16 ^ Housing I7 ^ Utilities _ 18 ®Otfter. Oescr;be (see ins:n:cCons) - Lease-Purchase of constructioa S64 125.00 ~n of Obli ations i (a) I (>•) (t) I t4 ( te) i (n Sous reoenaatn weiQtttO . W:~n-i ~1~e ul:erest rstt Ksut x~ee y:ea ae wnd~eiv a.erye iwae~rio~ YNA :ret+teaea ae~G 19 Fine) maturiC/ . •. :i/s1 i N/A 96 t N A N A 20 Entire issue . 4 5.00 N/A years 1 96 I % Uses of Ott final Proceeds of Bond Issues (includle underwriters' discount) 21 Proceeds used far accrued irtteresi 21 ~ 22 Issue price of entire issue (enter line 20c) _ 22 151)4 125.00 23 Proceeds used for bonC issuance costs (inciuG;ng underwriters' discount) . I ~ 2a P-ocetCs used ;or c:tdit enhancement . 24 25 P-ac_eCs ailoca:ee :o : easonabh reCuired reserve or reptacemerlt fund ZS 26 Proceeds used to re`Lnd arinr issues . 25 27 Tout (aCd lines 23.24. Z3. and 2~ . 127 I 28 Nonrefundin Croceeds of the issue subtract litfe 27 from line 22 and enter amount here . 28 684 ,125.00 Aescription of Refunded Bonds (complete this part only for refunding bonds) 29 Enter the remaining weighted average maturity of the bonds to be refunded - >~ 30 Enter the cast date on vrhit:rl v+e refunded bonds wiN be gtled - 31 Enter Me date(s) the rotuneed bonds were issued - Miscellaneous 32 Enter tre arroun; o' ;he s;a:a votunle cap allocates to the issue . _ - -t f 33 Enter the amoLr.; aj ttre ~or:ds destg-ated oy me issuer under section 265(bx3x9)(i)(IN) (small 3s Pooled financings: a :rater :he ar-..oun; or :'e :rcc!a:s o! this :slue that are to b! :.teed to nuke loans :o other govemrnenUt unitt - ~' /; ~ Graces Sox if [rats i55~e ~s a tca~ mane fr,m the proceeds of another Ux-ezunpt issue - ^ and enter the name of tT~e is$~ of - and the date of the issue - ~ UnCK x-i::'e3 ~: ,e' ~". ~M.72 :~>t: 1 1M narrt~ee0 :MS ::t:M aP01C.'Ow10an~~ !C'~lOYtff ir4 717TMNML i~a :~ "H~ ~!!: 3t 'Tr v~OrMeCt Y. ~ ~ry i~t :^.! ..'-!tom !~G :~r0~!!! Please Sign ~ If of a ~, e.~-a:~:n . ~r•:cr• Ox~ tr.t v xw rare vo :•: e for Paperwork Reouction Act Notice. see aa~e 1 of the Instructions. -,.~ 8039-G :a.- =y-~` .e A. ri.. r~wa h.wia.w !fr-s.. :H~-:S: UTA~e Payment Schedule to Governmental Lease Purchase Agreement Dated PAYMENT SCHEDULE ~~ r~~~~~ i~~~~~~~ Description CATERPILLAR 924 WHEEL LOADER S/N:5NN00967 PER PMT DATE 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 YEAR END BEGINNING BALANCE 84,125.00 83,090.00 82,463.54 81,834.00 81,201.36 80,565.61 79,926.74 79.284.72 78,639.55 77,991.21 11 10 77,339.68 12 11 76,684.94 13 12 76,026.99 14 13 75,365.80 15 14 74,701.36 1b 15 74,033.65 17 16 73,362.66 18 17 72,688.37 19 18 72,010.76 20 19 71,329.83 21 20 70,645.54 22 21 69,957.90 YEAR END PAYMENT 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 10,350.00 1, 035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 1,035.00 12,420.00 INTEREST 0.00 408.54 405.46 402.36 399.25 396.13 392.99 389.83 386.66 383.47 TERMINATION VALi7E ( ~ ) 83,090.00 82,463.54 81,834.00 81,201.36 80,565.61 79,926.74 79,284.72 78,639.55 ?7,991.21 77,339.68 3,564.68 380.26 377.05 373.81 370.56 367.29 364.01 360.71 357.40 354.06 350.72 347.35 343.97 76,684.94 76,026.99 75,365.80 74,701.36 74,033.65 73,362.66 72,688.37 72,010.76 71,329.83 70,645.54 69,957.90 69,266.87 4,347.19 23 22 69,266.87 1,035.00 340.57 68,572.44 24 23 68,572.44 1,035.00 337.16 67,874.60 25 24 67,874.60 1,035.00 333.73 67,173.32 26 25 67,173.32 1,035.00 330.28 66,468.60 27 26 66,468.60 1,035.00 326.81 65,760.42 28 27 65,760.42 1,035.00 323.33 65,048.75 Between Caterpillar Financial Services Corporation And x~xR covNTY PAGE 2 BEGINNING CONCLIIDING PER PMT DATE BALANCE PAYMENT INTEREST PAYMENT 29 28 65,048.75 1,035.00 319.83 64,333.58 30 29 64,333.58 1,035.00 316.32 63,614.90 31 30 63,614.90 1,035.00 312.78 62,892.68 32 32 62,892.68 1,035.00 309.23 62,166.91 33 32 62,166.91 1,035.00 305.66 61,43?.57 34 33 61,437.57 - 1,035.00 ------------- 302.08 -------------- 60,704.65 y~g ~p 12,420.00 3,857.79 35 34 60,704.65 1,035.00 298.47 59,968.12 36 35 59,968.12 1,035.00 294.85 59,227.98 37 36 59,227.98 1,035.00 291.21 58,484.19 38 37 58,484.19 1,035.00 287.56 57,736.75 39 38 57,736.75 1,035.00 283.88 56,985.63 40 39 Sb,985.63 1,035.00 280.19 56,230.81 41 40 56,230.81 1,035.00 276.48 55,472.29 42 41 55,472.29 1,035.00 272.75 54,710.04 43 42 54,710.04 2,035.00 269.00 53,944.04 44 43 53,944.04 1,035.00 265.23 53,174.27 45 44 53,174.27 1,035.00 261.45 52,400.72 46 45 52,400.72 1,035.00 257.64 51,623.36 ygp~ gNp 12,420.00 3,338.71 47 46 51,623.36 1,035.00 253.82 50,842.19 48 47 50,842.19 1,035.00 249.98 50,057.17 49 48 50,057.17 1,035.00 246.12 49,268.29 50 49 49,268.29 1,035.00 242.24 48,475.53 51 50 48,475.53 1,035.00 238.35 47,678.88 52 51 47,678.88 1,035.00 234.43 46,878.31 53 52 46,878.31 1,035.00 230.49 46,073.80 54 53 46,073.80 1,035.00 226.54 45,265.33 55 54 45,265.33 1,035.00 222.56 44,452.89 56 55 44,452.89 1,035.00 218.57 43,636.46 57 5b 43,636.46 1,035.00 214.55 42,816.01 58 57 42,816.01 1,035.00 -------------- 210.52 -------------- 41,991.53 y~R END 12,420.00 2,788.17 59 58 41,991.53 1,035.00 206.46 41,163.00 60 59 41,163.00 1,035.00 202.39 40,330.39 61 60 40,330.39 1,225.08 198.30 39,303.61 62 61 39,303.61 1,225.08 193.25 38,271.77 63 62 38,271.77 1,225.08 188.18 37,234.87 64 63 37,234.8? 1,225.08 183.08 36,192.8? 65 64 36,192.87 1,225.08 177.95 35,145.74 66 65 35,145.74 1,225.08 172.81 34,093.46 67 66 34,093.46 1,225.08 167.63 33,036.02 68 67 33,036.02 1,225.08 162.43 31,973.37 69 68 31,973.37 1,225.08 157.21 30,905.50 PAGE 3 BEGINNING CONCLUDING PER PMT DATE BAL7iNCE PAYMENT INTEREST PAYMENT 70 69 30,905.50 1,225.08 151.96 29,832.37 -------------- -------------- YEAR END 14,320.80 2,161.64 71 70 29,832.37 72 71 28,753.97 73 72 27,670.27 74 73 26,581.24 75 74 25,486.85 76 75 24,387.09 77 76 23,281.92 78 77 22,171.31 79 78 21,055.24 80 79 19,933.69 81 80 18,806.62 82 81 17,674.00 1,225.08 1,225.08 1,225.08 1,225.08 1,225.08 1,225.08 1,225.08 1,225.08 1,225.as 1,225.08 1,225.08 1,225.08 146.68 141.38 136.05 130.70 125.31 119.91 114.47 109.01 203.52 98.01 92.47 86.90 28,753.97 27,670.27 26,581.24 25,486.85 24,387.09 23,281.92 22,171.31 21,055.24 19,933.69 18,806.62 17,674.00 16,535.82 YEAR END 83 82 16,535.82 84 83 15,392.05 85 84 14,242.65 86 85 13,087.60 87 86 11,926.87 88 87 10,760.43 89 88 9,588.25 g0 g9 8,410.32 91 90 7,226.59 92 91 6,037.04 93 92 4,841.65 94 93 3,640.37 YEAR END 14,700.96 1,404.41 1,225.08 81.30 1,225.08 75.68 1,225.08 70.03 1,225.08 64.35 1,225.08 58.64 1,225.08 52.91 1,225.08 47.14 1,225.08 41.35 1,225.08 35.53 1,225.08 29.68 1,225.08 23.81 1,225.08 17.90 14,700.96 598.33 95 94 2,433.19 1,225.08 11.96 96 95 1,220.07 1,225.08 6.00 END OF LEASE 0.99 1.00 0.01 -------------- -------------- YEAR END 2,451.16 17.97 TOTALS 106,203.88 22,078.88 15,392.05 14,242.65 13,087.60 11,926.87 10,760.43 9,588.25 8,410.32 7,226.59 6,037.04 4,841.65 3,640.37 2,433.19 1,220.07 0.99 0.00 I N I~ DELIVERY SUPPLEMENT This pertains to the Lease, dated as of ,between Caterpillar lFinandai Services Corporation as Lessor and KERB COUNTY as Lessee. This confirms that the Lessee physically received the following Unit(s) on the possession date below. As of the date of signature of this form, (i) the Unit(s) are in all respects satisfactory to Lessee for leasing under the Lease, and (ii) Lessor has performed all of its obligations under the Lease. Description o[ Unit(s) t1) 924 SNN00%7 Caterpillar WHEEL LOADER Location ICERRYILLE, TX Co~1ty: KERR Possession Date: Form No. 0001-12/96 ICERR Cl Signature Name (PRIN1~~~~~~ . ~~/J.~V/V Title ~ \ Date A64131 03!11/97 04:4 MCI' DELIVERY SUPPLEMENT This pertains to the Lease, dated as of ,between Caterpillar Financial Services Corporatlon as Lessor and KERB COUNTY as Lessee. This confirms that the Lessee physically received the following Unit(s) on the possession date below. As of the date of signature of this form, (i) the Unit(s) are in all respects satisfactory to Lessee for leasing under the Lease, and (ii) Lessor has performed all of its obligations under the Lease. Descritkion of Unit(s) (1) 924 5MN00967 Caterpillar YNEEL LOJIDER Locatlon I~RRVILLE, TX County: IO:RR Possession Date: Form No. 0001-12/96 KERB CI Signature Name (PRIN'~~~GIC 1 ~. C~V?d~ Title n ~ t Date A64151 03 1197 04:4SPMCT CA1`ERPII~LAR FINANCIAL SERV . cS CORPORATION LESSEE: fCERR COUNTY 'A political agency or wbdivision of the Stets of TEXAS" ADDRESS: 700 MAIN ST KERRVILLE, TX 78028 GOVERNME>i. ,~I. LEASE-PURCHASE AGREEMENT Dated u of LESSOR: CATERPLLAA FNANCIAL SERVICES CORPORATN)N ADDRESS: 4975 Preston Psrk Blvd. Plano, TX 76093 Lessor, in reliance on Lessee's selection of the equipment described below ('Unit" or "Units"), agrees to acquire, lease, let and sell the Units to Lessee, and Lessee agrees to rent, lease, hire and purchase the Unite from Lessor. Descriotloe of Unlttsl ri P (1) 924 Caterpillar YHEEL LOADER 5NN00967 Location of Unitls): 700 MANY ST KERRVILLE, TX 78028 KERR Paymartt Scltadule attached. Lease Term: 96 Months Credit Utilization Date: JUNE 30, 1987 PAYMENT PROVISION: Lessee shag pay to Lessor payments (inciudirg the principal and interest portion) in 96 consecutive monthly instatlments commencing on the Delivery Date. ADDITWNAL PROVISIONS: RIDERS: PAYMENT SCNEDULE Construction Equipment Application Survey Rider TERMS AND CONDITIONS 1. LEASE TERM; NON-APPROPRIATIONS: The Lease term for each Unit shall commence on its 'Delivery Date' (which is the later of the date on which la) Lessor executes this Lease, (b) Lessor takes title to the Unit, or (cl Lessee or its agent receives possession or takes control of the Unit, provided the Delivery Date is on or prior to the Ged'R Utilization Date set forth above) and shall continue though the last day of Lessee's fiscal year in which the Delivery Date occurs and, thereafter, shall automatically be extended for successive anrxial periods coinciding with Lessee's fiscal years. If the Delivery Date is not on or prxN to the Credit Utilization Date, Lessee shall, at tt-e option of Lessor, assume lessor's obligations to purchase and pay for the Unit. Within seven days fogowaq the Delivery Date of each Unit, Lessee shag exec~rte and deliver to Lessor a Delivery Supplement using Lessor's standard form. In the event no funds or insufficient funds are appropriated and budgeted or ors otherwise not available in any fiscal year for payments due under this Lease, Lessee w~7 immediately notify Lessor of such occurrence and this Lease shall terminate on the last day of the fiscal year for which appropriations were received without penahy or expense to Lessee, except as to the portions of payments herein agreed upon for which funds shall have been appropriated and budgeted or are otherwise avaiabls. Notwithstanding the foregoing, Lessee agrees that, to the extent permitted by law, it will not cancel the Lease under the provisions of this Section i if any funds are appropriated to it or by it for the acquisition, retention a operation of the Units or other equipment performirtg functions similar to the Units for the fiscal year in which termination occurs or the next succeeding fiscal year. 2. PAYMENTS; NET LEASE: During the Lease term, Lessee shag pay to Lessor, at the address stated above or such other bcation Lessor designates in writing, rant for each Unit as stated in the attached Payment Schedule and according to the above Payment Provision. An amount equal to one payment for aR of the Units nwst accompany this Lease. ff Lessor accepts and executes ttws Lease, said amount shall bs applied to the fu~st payment due. If Lessor does not execute this Lease, said amount wiN be returned to lessee. If Lessor does not receive a payment on the date it is due, Lessee shag pay to l.esaor, on demand, s Isla payment charge equal to the lesser of five percent (5%) of the payment not paid when due or the highest charge allowed by law, whichever is las. This Lassa is a net lease, and Lessee shall not be entitled to any abatement or reduction of payment or any setoff against payment, whether arising by reason of any past, present or future claims of arty nature by Lessee against Lessor or otherwise. Except as otherwise expressly provided herein, the obligations of Lessor and Lessee shag not be affected by an defect in, damage to, loss of possession or use of any Unit, however caused, by the attachment of any lien a other claim to any Unit, by any interference with Lessee's use of the Unit, or for any other cause, whether similar or dissimilar to the foregoing, any present a future taw to the contrary notwithstanding. 3. WARRANTY DISCLAIMER: Lessee acknowledges and agrees that la1 each Unit is of a size, design and make selected by Lessee, (b) each Unit is suitable for Lessee's purposes, Icl each Unit contains aN safety features deemed necessary by Lessee, (d) Lessor is not the manwfacturer of any Unit, (el the vendor of any Unit is not an agent of Lessor, and (fl LESSOR HAS NOT MADE, AND DOES NOT HEREBY MAKE, ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, iMTH RESPECT TO THE MERCHANTABILITY, CONDITION, QUALITY, DESCRIPTION OR DURABILITY OF A UNIT, OR ITS FITNESS FOR A PARTICULAR PURPOSE. Lessor assigns to Lessee, to the extent assignable, any warranties of a Unit by its manufacturer and/or vendor, provided that any action taken by Lessee by reason thereof shall be at the expense of Lessee. 4. POSSESSION, USE AND MAINTENANCE: Lessee shah not (al use, operate, mainrtain or store any Unit improperty, carelessly, unsafely or in violation of any appftcabie law or regulation or for any purpose other than in the conduct of Lessee's business; (b) abandon any Unit; (c) sublease any Unit, permit the use of any Unit by anyone other than Lessee, change the use of any Unit from that specified in the attached Application Survey/Usage Rider, or change the location of any Unit from that specified above, withaR the prior written consent of Lessor, or Id) sag, assign or transfer, o- directly or indirectly create or suffer to exist any lien, claim, security interest a erxxxnbrance on any of its rights t-ereundar or in any Unit. The Units are and shalt remain persona! property irrespective of their use or mamsr of attschrnsnt to realty. Upon prior notice to Lessee, Lessor or its agent shall have the right (but not the obligatioN at ail rsssonabls times to inspect any Unit and maintenance records relatkg thereto. Lessee shall, at its expense and at all times during the Lease term, maintain SEE REVERSE SIDE FOR ADDITIONAL TERMS AND CONDITIONS LESSEE ACKNOWLEDGES HAVING RECEIVED A FULLY COMPLETED AND EXECUTED COPY OF THIS AGREEMENT Lessor: CATERPILLAR FWANCWL SERVICES CORPORATN)N gy N~ T' Da l1 Nose (PRINT) Title Date A6416 Lessee: COUNTY By ~c tM Units In good operatirrp order. repair and condition""'' sha11 paAorm maattenance at Nast u fngwntly u set'"'`• in any appNcabN operator's guide, prvia marwM, and hrbrricadort and mair-terarragtride for tfle UNts. Lessu not Thar arry Unit or affix arty aceasswYa egrdpmarrtto ~ nit H such aRaration a addkion would irrrpair the ori˘rsNy intended tunetion or up or raduq the velw of such Unit. Any alteration or addition to any Unit sMq ba tM resporaibiNty of and at tM aoN rick of Lassa. AN parts, accassoria and equipment affixed to any UNt tiraN N subjectto the security letterset of Lessor punted hereunder. H Lessor suppilesLessp wkh labeb stating that tM Unit b leased from Lessor, Lusu Thep affix and keep then) b a prominent Place on tM Unit. 5. LESSEE'S REMIESENTATION AND WARRANTIES: Lass repnsertts and warrants to Lessor tMt (U Lassa a a fogy eonatitutad political subdivisbn or agsrtcy duly orpartized and axistitp under tM Constitution and Nws of the state robes tM Units wNl ba bated; (b1 Lasses hu the power to enter Mrto and psrforrn this Lap and hu taken aq necessary and appropriab action to autltoriza tits exaeutlon, detlvary and perforrttanee hereof: lel this Leap constitutes a vsgd and bgaNy binding and anforopbN obNpatbn of Larsea; Id1 ttts interest peyaDN by Lassa Mnr+tder b axckdebN from iteorrte for FaderN income taxation purposes puruantto Section 103 of tM kttemN Mvenw Cods of 7888, as arrwtdsd (tM •Code•1; and (e1 Lasses Ms sufficlent appropriations or other funds awNabN to wY eN amovrtb des haeunda fa tM currant fiscal year and reasonably DeNevea that funds can be obtained sufficient to nuke atl payments during tM term of this Lease. Lessee represents that the we of tM Units b essential to Lessee's proper, efficient and economic operation. LaaN acknowNdgssand aprus that the payments Mw been ulculatedby Lector assuming that the lrtterat portion of ash payment le excludable from prow income fa Fadenl income taxation purposu. Lessu npruents, vrarrsnts and eovatanta that: ta! Lsssu wIN comply with tM Mformatbrt reporting raquiramatts of Section 148ia1 of the Cods, u tIN same may ba anratdedfrorrt lima to lima, and such eompliancesMq include but not ba Nmitad to tM exacutionof informationstatemattsrsgwstedby Lassor;lb) Lessp witl trot do or cause to ba dons anti set which wNl cause, or by omiubn of any act aNow, the Lap to be an arbitrage bond wltNr- tM meaning of Section 148(a1 of the Coda; {cl Lasses wql not do a caws to De done any act which wNl auu, or by omission of any act aNow thin Lease to ba a private activity bond within the meaning of Section 141(s1 of tits CoM: Id) Lush wi tirttely pty to tM extatt of avaibbN funds, amounts required m ba rebated to tM United States pursuant to Section 148(fl of tM Code; fd Lesaa wiN not do or auu to be dons arty act which wiN cause, or by omission of any act agow, tM interest portion of the payments to be or become includable in prose income for Federal incorrre taxation purposes under the Cods; and If- Lsssu will be the exclusive owner, uaa and opsntor of tM Units, Lessee sMN provide to Lessor an opinion of counsM substentNtly in tits form sttaehed hereto. !. TAXES: Luru agrees to promptly pay or nimbrere Lessor for aN fees and taxes of any nature, together witft any panaHies, fine or additions to tax, or irrtenst thereon (aq of tM foregoing herufter the •Nrtpoeitions'l,ariaing at arW lima prior to. durirq or aubsaquentto tM Leap farm and Nvisd by arty taxing authority with respect to or in connection witlt any Unit, aaArdirtg, however, taxu meuured by Lessor's rtat income (of but not axciidirp any net income texas which, by tM tarn of tM states imposing such Ux, expressly refiwe t.earee a Lass from the payment of any Nrposftbrts which Lassa would otherwNe bs obggated to pay or nirnbtrssl. H l.psor is not errtided to • eonaspondingand egwl deduction with rupeetto any irtpositiort which Leuu b required to pay or roimburse and such paymert or reimburprrterrtcortstitutesirtcoms to Laesor, then Lassa sMq abo wy to Luca tM antoutt of any Irrrpoaitiwta which Lessor b obNgated to pay in respect of la1 such p.ym.rte or reimbunerrrerrt by Lass and (b) any paymatt by lessee made Pursuant to this sentanee. leases shaiti prepare and fNa, b • mama satsfactory to Lasaor, any sports or returns which may De requked with respect to tM Units. For purposes of tltis Section, 'Lessor' el-sq irtcirde arty atfNNted group, within tM manirtg of Section 1604 of tM Coda. of which l.eaaor N a member for anY Year in wFtictt a conaolidatedor eombirrd income tax return N fNed for tfN affiliated group. 7. LOSS OR DAMAGE; /lSURANCE: Lessu assumes aq risks and Nobilities of loss, damage or Gswlty Occurrence la herainaftsr defirtedl for any pup wMtsoeva, for cordemrtationof any Unit prbt m. during or subsegtrsMto (urrtq the Ur-it is returned to Lessor purwnt to Section 101 the Luse farm, and for injury to or loth of any person or damage to any property in any ntarxter arising out of or incident to the possession. up, operation, condition or stooge of tM Unit. H any Unit becomes damaged. from any rouse whataoswr, LearN stag give Lessor prompt notice tltereot. H Lessor reasonably determines that such dart-age b not irrapanbN, then Lessee shah, at its expanse, PromP W restore the UnR to tM condition rt4ui-b by Section 4 show. M any Unit becomes room out. bet, stoNrt, destroYad or irraparby damaged las rssaonarily determined by Lasses) from soy cause whatsower, Or taken by Catderratation or otllerwbe (any such OCCUrralr:e hereafter a •Gswfty Occunatcs'1 Prior to, during or subsequent to (urttq tM Unit is returrtad to Lessor pursuant to Ssation 1 Oi ttte Lsap term, l.essp ahsq prve Lessor prompt notice thereof. to tM event of s Gswlty Occurrence, Lesser sMq pay to lessor. ort the sarNer of lal the fist peymerttdsts folbwig such Gswlty Oecurrertcsor lbl thirty (301 days foNowing such GsuakyOccunence, a sum ltM •Tam(MtionYak-e•-egwt to h1 tlte'Bepirtrtitg Babnce• lee specHied in tM attacltad Paymatt Schedule) a of tM next payment due foNowig such Gswity Occurrence, Plus (b) tM artaunt of the ktterut portion les specified in ttte f'ayrrtartt ScMdule) of the next paymatt due fotlowirg such Gswhy Oceunsrta rtrultiplisd times s fnetion tM numerator of which is tM number of days from the later of ia) tM DeNvery Data of tM Unit a (bl tM des data of the payment immsd'utsiy preceding such Gsualty Oeetmena untN tM due data of the payment des Mnrxtder in respect of such Casualty Occur-snesand the denominatorof which is 3f10. lessee, at its expanse, shah keep each Urtit insured againstaq risks for not less tMn tM appNable Beginning BsNrtes with respect to such Unit and shall maintain compreMnsivepublic gabnity insurance covering ach Unit for not Nss than i 1,000,000 for cortdtinsd coverage for bodily injury and property damage. An insurance shah (a1 be in a form and with such companies p Lessor shah approve, (b1 specify lsaor (or its designee? and Leup as named insureds, Ic1 M prirnary, wilhout tiphR of corttributionfrom any other insurance carried by Lessor, Id1 provide that such insurance may not be artcensd or akaed so as to affect tM interest of Lessor without at Nast thirty (30I days' prior written notice to Lessor, and let name Lessor for its dssigneel as by payee and be payable solely to lessor. laap agrees to notify Leseorof sty occtnana which may betrometM basis of an itsurancecNim herounderand not to make arty adjustmsntswith insurer without Lessorsprior written consent. Lessee hetebyMnvoeabiy appoints Laasorits attorney-k--faetto racsiw paYmaM of and endorse aN checks and otffar doeumsrrts and to take any other actions necespryto pares inaunnce cNims. Prior to tlw first Deiwry Dab of any Unit. Lease sMN deNvery to Lessor satisfactory evidana of such inaxana coverage. 8. WAIVER AND Mi1DEMNITY: LESSEE HEI~SY RELEASES ANY CLAIM NOW OR HEREAFTER EXM7N0 AGANYST LESSOR ON ACCOUNT OF, AND AGREES TO DEFEND, MNDEq/tIFYAND HOLOLESSORHARMLESSFROM.ALLCLAMIS OF LESSEEAND/ORTHNItD PARTtESIgYCLUDMIIfi, WITHOUTL1MiTATION, CLAIMS &4SEDUPON STRICT UABLLITY IN TORT Af+lO FOR CONSEOUEMTUIL DIIMAGESI. LOSSEB, DEMANDS. WeLLITiEB, SUITS AND .IUDGMENTB, AND ALL I~STS OR EXPENSES IN tX?NNECTiON THEREWRH, NtllX.UDNG ATTORNEY'S FEES AND EXPENSES, WHICH MAY RESULT FROM OR ARISE OUT OF THE SELECTION, PURCHASE, DELIVERY (M1ClUDINO ANY DELAY IN OR FAR.URE OF OBIVE1tY/, COiNDIITION, USE, OPERATION. OVYNERSFtlP. MAN~iANCE OR AEPANR OF ANY UNIT PRIOR TO, WRING OR SUBSEOUt:NT TO (UNTti SUCH UNIT 1.S RETURNED TO LESSOR PURSUANTTO SECTION 101 THE LEASE TERM AE TO THE UNIT, OR WHICH MAY 8E ATTRISUTASLE TO ANY DEFECT fN ANY UNIT ARISING FROM THE MATERIAL USED THEREN OR FROM THE DESIGN, MANUFACTURE OR TESTING TIfEREOF, OR FROM ANY USE. ~ OR REPAIR OF ANY UNIT, 1tEGARDIESSOF WHEN SVCH DEFECT SHALL !E DISfX)1IERED, YYFETHER OR NOT THE UNIT iS Si THE POSSESSION OF LESSEE ANO NO MATTER WHERE R M LOCATED. 9. EVEgfTB OF DEFAULT; pEaEDES: Each of the foNowing aftatl constitute an 'Event of Default' Mrewtder:;a1 Lpsee shag faN to males anY WY~t to Lessor when des: (b) any rapretentationor wsmrny of lessee eontsined heroin or in any docunant famished to Nssor in cortrtsction herewith rMn ba incorrect or misladinp when made: (cl Lassa ahaN fail ro observe or perform any other covenant, spresmattor warranty made by Lessp herwndaard such faikrr0 shah contirtw f Ot tan (101 days after written notice theroof to Lesser; (d1 Lessee ritaN faN to make arty Paymar-t on its bonded indebtsdnaeswhen due: or lel then shah be a default by Lassa under arty other aprsement between Lessor and Lessee. H any Ewrtt of DefauH sMq occtx, Lessor, at its option, may la1 proceed by appropriate court action(s) to enforce this Lsap or to recover damages for tM breech thereof; (b) by notice in writing to Lasses, tarrrtirtatsthb Leap, Dut Lessee shag romaM gabN a hereinafterprovidsd, end then upon Lessor may, at its option do anY one or moro of the followitp: (b-1) recover forthwith from lssau (7 arty and aN amounts than due under this lease a which n-eY Mw accnred to tM data of such termination, (ill as damage for boa of the baryait and rest as s perttlty, a sum equal to tM payment des with respect to tM Units during tits baiena of tM fiscal year, end Im1 any additional darrapa and expertsessustairtsd by Lessor by rason of the breach of any covataM, repraertUtionor warranty corrtairtedin this Lpss otMr than fa tM Payment of amounts des hereunder; ib-21 enforce the sacvirty interest given herwrda, (b-31 without Troths, Mbgity a Neal procap, enter upon the ptertrlesa when any of tM Units maybe and take pospsaiortihaeof, and (b-4) repairs yeses to return Ute Units u provided in Section 10. Lessor shah Mw aN rights given to a ssrxrred party by law. Provided Lsuor rsceiwa poapsion of tM Units fonowirg an Evart of pafault, Lessor may, at its option, undertake comntaeially rpsonabN effort to pil or rs-Naas tfia Unka, and the proceeds of any such saN or ro-Ness sMn be applied: first, to reimburse Lessor fa ap rsasonabN expense of retakirtp, holdrg, preparing for pN or re-Nap and seNinp o- n-Nosing the Units, including aN taxes and reasonable attomey'sfas and expenses; second, to tM extant nut previouay paid by Lsau, to pay Lessor atl amounts, except those specified below, which under tM tsnro of this Leap an due or Mw aeenrsd u of the data of Lessor's receipt of said proceeds: third. to psy aN Nts paymatt eMga Pursuant to Section 2 hereof; and fourth, to paY Lessor tM applicabNTermination Value with respect to tM Unit. Arry surpkrs sheN be paid to tM person erttiRted thereto. Lase ahatl promptly pay any def icisneYto Lessor. Lsssu ackrawbdges that saNs for cash or on credit to a whofesaNr, retsr'Nr or rosy of tfis Units an aN commerciallyroasortable. Lesau agrps to pay all reasonabN attorney's fps and sq costs srtd sxpatses incurred by Lessor in anforcinp this Lease. TM remedies Mrsin provided sMn be cumulative end in addition to aq other romedies at law w In equity; provided, however, lessor shag not ba entiWd to recover a prpter anwrmt in damages tMn Lsor could haw pained through lsrsa's fuN, timely and complete psrformanee under fhb Leese, plus eq fees, costs and expenses incased by Lapor in enforcing thle Lassa and aN late paymsrrt dtarga purswM to Section 2. H Lases f ails to perform any of its oblipatioru under this Lass, l.ssaor mty (but need not} at any time therufpr perform such obNgation, and tM expenses incurred in connection therewith shall be payabN by Lsssu upon demand. 10. RETURN OF UNIT: Upon arttr wnrirtatiorr of the tarn of tfiia Leas with rsspectto each Unit or H Lector sMq rightfully demsnd Possessionof any Unit, Lease, n its expense, shah fortftwiM deNver tM Unit to Lusty, appropriately protected and in the condition required by Section 4. at tM option of Lessor. to the premises of the nursrt GterpilNr dealer seNirg equipment of the urns type u the Usk, or on bard such wrtier p lessor aMil specify and shipping the same, freight COINCL, t0 the destination desipnatsd by Lessor. H lire Unit b not in 1M eondltiort replied by Section 4, lessu shag paY to Lessor, on demand, aq casts end expenses incurred by Lessor to bring the Unit into aid condition. 7 7. RETORT TO HIS: Luau wi report this Leap to the Internal Revenue 8enrice by Rang Form 80384. 8038-(iC or 8038 wMcMwr is appNcabN. Fatkae to do so wi11 cause ttte Leue to by its tax exempt stelae. Lase agrees that H the appropriate form b not fNsd, the interest its wN bs ad)usted to an equivalent taxable htterest refs. 12, TIRE, SECURIT1f NTEREST AIO WRTHER ASSURANCES: Provided Ia1 Lassa has sccepted esd- Unit on its dNivery date: Ib) the Delivery Data of the Unit is on or prior to tM Credit lJtgbation Data noted on tM fsq henot; and lc1 rto Event of Default exists u of tits Degwry Data of tM Urrlt, title to each Unit aheq vest in Lessee on tM Delivery Date of etta Unit, provided, however, that in 1lte wem (il fhb Leue N terminated purrwnt to Section 1 hereof, or (qf an Evert of Defauh hu occurred and N continufrtp, titN to tM Unit shsgirrr~aWy-avNtint.user.it~uofanyright.tidaandittarutofl.asu,unlasUuoreNctsotltarwissinwHtirp. LastNahenbygnntstoLessorseoMinuinpsaaxitY~arest n the Urals. irrcitrdktE aN attacMterrts, aeceuorissand optional features !whether or not irtstaNsd titenon) and aq srrbetitutiona, repNeemattr, additiatr and accurfontsthersto, and ant proceeds of ~ of tlta forspoirg, to segue the payment of aN sums due. Leap roil, at its experae, do arry furtMr act and execute, acknowNdgs, dNiwr, fds, rogista and record any further doountatq which l.esror may naaortabN request in order to protect Lessor's sacruky itterest in ttte Unite and Lesson rights and~bartafits under fhb Leua. 13. ASSIOIiiENT: COUNTERPARTS: Without tM prior written consent of Lessor, no su(pnmatt of thb Lease err any right or oblipetion Mnundar moY be made by Lasses or any asaiprtwof lessee. Lessor may rest assign ib right, title and irttenst in and to tftb Lup and tM Urrib and/or gent a assign s sectuky in:.rest b fhb Leap and tM Units, in whole or in part. Although multiple eotxtterParb of this document may be signed, only ftte cautterpart accepted, acknowNdpedand eertHied by Catapigar Rnancid Services Corporation on the aignariue Pala thereof u the original wiN eortetitute original chattN paPM. 74. EJECT OF WAIVER: No debt' or omission to exerclea arty right or remsdY aeeruirg to Lessor hererutda ehM impale any such right or remedy nor shah k be constnred to bs a wahre- Of any branch or default of Lessu. My waiver or consent by Lessor under thb tease must be in wrltinp apeclfMcaNy rat forth. This Leese completeh sofa tM righlt of Luro- and Lease whh respect to tits Unity and superedaaN prior apramsnts witlt raped thereto. Thrte b of tM aaence of this I.ap. No variation of modHicatiortot this Lease shd M vag0 unNu in writitg and signed by tM authorized representatrvaof Lessor and Lessee. AN rtoticea hereunder shag M fn wring, addressed to rich party at the address sat forth on the front of fhb Lease a s< s-telt other address u may be fwnisMd in wAtinp. Harry ptovNion of ihb Lusa shag M hvagd under anY appgcable law, such provision shop be deemed omitted but tits rerrtainirq provNions shag bs t)iwn affect. AN obNgation of Lupo under fhb Leau shag survive tM etgtiration a brmination of thN Uase to tM extant ngtied fa their ftrN obeervsnceand perforrrtartce. 16. GENERAL: This Lease shag bs gowmed by and construed under tM laws of tM Slats whero the Units an bcatsd. CATERPILLAR FINANCIAL SERVICES CORPORATION LESSEE: KERR COUNTY 'Apolitical agency or subdivision of the State of TEXAS' ADDRESS: 700 MAIN S7 KERRVILLE, TX 78028 GOVERNMENTAL LEASE-PURCHASE AGREEMENT Dated as of LESSOR: CATERPILLARFNANCWLSERVK:ESCORPORATK)N ADDRESS: 4875 Preston Park Blvd. Plano, TX 75093 Lessor, in reliance on Lessee's selection of the equipment described below ("Unit" or "Units"), agrees to acquire, base, bt and sell the Units to Lessee, and Lessee agrees to rant, lease, hire end purchase the Units from lessor. Desaioda+ of Urals) ~i~ (1) 92L Caterpillar MHEEL LOADER 5NN00967 Loealien of Unitls): 700 MAIN ST KERRVILLE, TX 78028 KERR Payrerent ScMdrrie sttaefted. Lease Term: 9a Months Crsdrt Utilization Date: JUNE 30, 1997 PAYMENT PROVISION: Lessee shall pay to Lessor payments (including the prinapal and interest portion} in 96 consecutive monthly installmeMS commencing on the Delivery Date. ADDITIONAL PROVISKf111S: ~~~ PAYMENT SCHEDULE Construction Equipsient Application Survey Rider TERMS AND CONDITIONS 1. LEASE TERM; NON-APPROPRUITN)NS: The Lease term for each Unit shah commence on ks 'Delivery Date' (which is the later of the date on which (a) Lessor executes this Lease, (b) Lessor takes title to the Unit, or (c) Lessee or its agent receives possession or takes control of the Unit, provided the Delivery Data is on or prior to the Credit Utilization DaU set forth above} and shag continue through the last day of Lessee's fiscal year in which the Delivery Date ocaxs and, thereafter, shall sutomaticaNy De eMended for successive amual periods coinciding with Lessee's fiscal years. ff the Delivery Data is not on or prior to the Credit Utilization Date, Lessee shah, at the option of Lessor, assume Lessor's obligations to purchase and pay for the Unit. 1Krt!-in seven days folbwirg the Delivery Date of each Unit, Leases shsR exearte and deliver to Lessor a Delivery Supplement using Lessor's standard form. In the event no funds or irtsufficieM funds era appropriated and budgeted or are otherwise not available in any fiscal year for payments due under this Lease, Lessee will immediately notrfy Lessor of such occurrence and this Lease shall terminate on the last day of the fiscal year for which appropriations were received without penalty a expense iD Lessee, except as to the portions of payments herein agreed upon for which funds shall have been appropriated and budgeted or are otherwise available. Notwithstanding the foregoing, Lessee agrees that, to the extent permitted by law, it will not cancel the Lease under the provisions of this Section 1 if any funds are appropriated to it or by it for the acquisition, retention or operation of the Units or other equipment performing functions similar to the Units for the fiscal year in which tentxrwt)on ocrxus or the next succeeding fiscal year. 2. PAYMENTS; NET LEASE: During the Lease temp, Lessee shall pay to lessor, at the address stated above or such other k>cation Lessor designates in writing, rent for eadt Unit as stated in the attad~ed Payment Sd~edtrb and according to the above Payment Provision. An amount equal to one payment for aR of the Units must accompany this Lease. H Lessor accepts and executes this Lease, said amount shall be appNed to the first payment due. H Lessor does not execute this Lease, said amount will bs returned to Lessee. H Lessor does not receive a payment on the data k is due, Lessee shall pay to Lessor, on demard, a late payment d~arge equal to the lesser of five percent (5%) of the payment not paid when due or the highest charge allowed by law, whichever is bas. This Lease is a net base, and Lessee shell not be entitled to any abatement or reduction of payment or any setoff against payment, whether arising by reason of any past, present or furore daims of any nature by Lessee against Lessor or otherwise. Except as otherwise expressly provided herein, the obligations of Lessor end Lessee shah not be affected by an defect ~, damage to, bas of possession or use of any Unit, however caused, by the sttad~ment of any lien or other daim to any Unit, by any irtterfersnce with Lessee's use of the Unit, or for any other cause, whether similar or dissimilar to the foregoing, any present or futwe law to the contrary notwithstanding. 3. WARRANTY DISCLAIMER: Lessee acknowledges and agrees that (a) each Unit is of a size, design and make selected by Lessee, (b) each Unit is suitable for Lessee's purposes, Ic} each Unit contains all safety features deemed necessary by Lessee, (d) Lessor is not the manufacturer of any Unit, Ie) the verxlor of any Unit is not an agent of Lessor, and (fl LESSOR HAS NOT MADE, AND DOES NOT HEREBY MAKE, ANY REPRESENTATION OR WARRANTY, IXPRESS OR IMPLIED, WITH RESPECT TO THE MERCHANTABILITY, CONDITION. O:UALITY, DESCRIPTION OR DURABILITY OF A UNIT, OR ITS FlTNESS FOR A PARTICULAR PURPOSE. Lessor assigns to Lessee, to the extent assignable, any warranties of a Unit by its manufacturer and/or vendor, provided that any action taken by Lessee by reason thereof shah be at the expense of Lessee. 4. POSSESSION, USE AND MAINTENANCE: Lessee shag not (a) use, operate, maintain or store any Unit improperly, carelessly, unsafely or in violation of any sppGcabb law or regulation or for any purpose other than in the conduct of Lessee's business; Ib} abandon any Unit; (c1 sublease any Unit, permit the use of any Unit by anyone other than Lessee, dtargs the we of any Unit from that specified in the attached Application Survey/Usage Rider, or change the k~catiort of any Unit from that specified above, without the prior written oorrsent of Lessor, or Id{ sell, assign or transfer, a directly or indirectly create or suffer to exist any Ran. daKn, abcxxity interest or encumbrarN;e on any of Its rights hereunder or In any Unit. The Units are and shah remain personal property irrespective of their use or manner of attadxnerrt to rssN,y. Upon prior notice to Lsssse, Lessor or its agent shag have the right Ibut not the obl"pation} at aN reasonabb times to inspect any Unit end mairrtanance records relating thereto. Lessee shag, at its expsrue and at all times dur&rg the Lease term, maintain 8EE REVERSE SR~E FOR ADDITIONAL TERMS AND CONDITION8 LESSEE ACKNOWLEDGES HAVNG RECEIVED A FULLY COMPLETED AND EXECUTED COPY OF THIS AGREEMENT Lessee: K LINTY BY Nave (PRINT) ~ ' ~~ Lessor: CATERPR.LAR FlNANCIAL SERVICES CORPORATION By Masse (PRINT) Title Date n z/es~ Titl• Date pasta tM UNt in good operoting order, repak and condition j•"` ehaN perform nakttenance at lust as frequently as sat f°~ in any applicable openta's guide, service rttarrral, and lubrieet)onand maktbranoeguide to 1M Unke. Laspe ~ ,tot esker any Unit a affbr arty acceseorya equlprMntb a .tk N such •herstlort a addhfort would impair tM origkally intended furtctlort a up a reduce the valve of such UnR. Any Mbratbn a addltlon to sny Unk shN be tM responsibility of and at tM soN risk of Lessp. AN para. aedssoriea and egttiprrtanlaffixed to any Unit sMN be subjectb tM aacwity Interestol Leesagronted heeunde. M Lesor supplbs Leese with that stating tMt tM Unit b hued from Lesor, Lasso ahaN elite and keep titan in • prarritertt piece on flea Unit. 5. LE83EE'i RNN~BENTATION AND WARRANTN:B: Lush repreetts and warrant to lessor that Ill Lasso b a fully constitutedpolitical subdivision or agency duly oryanized and existing tertdar the Conatltvtion end laws of tM stab where tM Unit wNl be located; (b) Lessee has the power to ante iMO and perform this Leas and he Akan aN rteeesary and appropriate action to authorize the execution, deNwry and perfomanp hereof; tc) this Leese constitute a wNd and IagaNy bind'ep and enforceabNobNpatlort of Levee; (d) tM irttept payable by Leash hMSUrde b aoekrdabiefrom income for Pedant income axatbn purpoees purswrttto Seetlon 103 of tM kttertN Revenw Coda of 1988, u ananded (tM 'Code'); and (e) Leesee has auffioiartt approprbtiorte a Debar fords eveNsbb a pay aN amour-b des Mrewtder for tM ctsrerrt Ebel year and roaaonabiy befave that funds can be obtirad auffiCiertt b rmke aN payment during tM farm of this Lpp. l.esp rsprosertts that tM up of tM Units b eeerttiel to Lease's proper, efficient and economic operation. L.aep ackrawNdgesand agrps that tM p.yntsna haw bean calculated by Lessor assuming that tM hrterut portion of eeh payment b exch~dabb from gross income for federal irtcorra bxation purpoeea. Lasso reprpenb, warrant and covenants that: Ia1 Lease wNl comply with tM fnformation reporting requiromeMa of Ssetfon 149(e) of the Code, a 1M erne may be anretdadfrom lima b lima, and such compNanceshaN itcktds but not be Nmibd to the execution of information satemana regwstedby Lessor; tbl Lesue wNl rat do a cacao to be dove any set wlticlt wNl cave, a by omission of any set Now, the Luca to be an arbitrage bond wltAin tM msanirtg of Section 1481a1 of the Cods; (cl LesN wNl not do or cause to be done any set which wr7 cause, a by omission of any act allow this Luu to be a private activity bond within the meaning of Section 141(a) of the Cods; (d) Lasso wNl timely goy b tla extant of avaiabk funds, amount squired to be rebated to tM United State purswM to Section 1481f) of the Coda; {s) Lessee wNl not do a caws to be dons arty act which wNl cataee, a by omission of any act albw, tM interest portion of the paYnant to ba a become includable in gran irteorra for Federal intone tsxation purposes under tM Coda; and (f) Lessee wdl be tM exclusive owner, we and openta of the Units, Lessee shah provide to Lessor an opinion of counsel subsantially in fire form attacfadhereto. 8. TAXEB: Lepee agrep to promptly pay a rsimbtasa Lessor fa aN fees and txe of any nature, together with any Penalties. fires a additions to tx, a attersst thereon fah of tM forpoitg heeafte tM •kttposkiorts'1, srisirtg st ar-y time prior to, during a subsegwntto tM Leu term and kvisd by sny axing authority with res pea to a in comsction with any Urtil, etrdudlrq, however, bxp mesund by Lessor's net income lof but not excluding any net income taxis which, by the term of the statue imposing such Ux, expreely reNew Leeeee a Lassa from tM Daymertt of arty htrpositiora which Leep wooed othewbe ba obNgated to pay a roimburssl. M Lassa b not entitled to • cortupondingand equal deduction with respect b arty hrrposition which l.sape is rogttired to pay a reirtrbtxse and such payment a teirnburserratrt eortstitutss income to Lassa, then lessee shN also pay to Leeeor tits sfrweatt of arty httpoeidora vehicle Lassa is obNgebd to pay in respect of {al such paymerK a ra)mburpment by Lsssp and (b) sny paymart by Lasses made pursuant to tills prelertee, l.eaaee shah prepero and RN, in a mMwte setlsfaetoryto l.sssor, any report a -etwns which may be roquired with respect to tM Units. Fa purposes of this Section, Rpeor'aiwN inducts arty affNiated group, withit the meniq of Section 1604 of the Coda, of which Lsssa b a member fa sny yer in which a consolidatsdor combined income tax relearn is fNed fa tM affiNated group. 7. L08S OR DAMAGE; NSURANCE: Lpsee assume aN risks and NabNkbs of be, damage a Gswlty Occurrence {as hereinafter def)rtsd) fa any puss whatsowsr, for condermationof arty Unit prior to, durirtp a atrbfegtrantb IuntN tM Unit is returned to Lassa punwnt to Section 1 W tM Lou term, and fa injury to a death of any person or damage to any property in arty manna arising out of a incident to the poaseasion, use, opention, condition a storage of the Unit. H any Unit becomes damaged, from arty caws whatsoever, Laeep shah give Lassa prompt notice tltereot. K Lassa reasonaby determine that such damage b rat impanbb, titan Lasso shah, at its expanse. promptly retie the Urtk b 1M eandition required by Section 4 above. N sty Unit becomes wan ov4 bet, stokers, destroyed or irrspanblY damaged (as roasonablydetarmirod by Lessal from any cause wftatoeve, a tken by condenration a otl+erwise lany such occurrence herefte a 'Gswky Oteurrertcs') prior to, during a subaspwnt to (until tM Unit b returned to Lessor puntant to Sectlat 10) file Leap farm, Lessee sha0 ~ Lpsor prompt notice thesof. In the avant of a Gsuatty Occurrartcs, Lessee shah pay to Lessor, on the eviler of (a) tM fast paynwtt dal toNowing sudt Gswlty Ocusrsrtceor fb) thirty (30) days following such Caswlty Occtursrtce, s sum (the 'Tsrminatan Value') aqua) to la) tM 'beginning balartee' Ip speciRed to the elected Paymsrtt SdaduN) u of file Mxt payment dos toNowirp such Gswlty Occurrence. plus (b) the amount of fhe interest portion le spedHed in tits Payrnartt SdteduN) of the rtaxt payrtant Ave fobwip such Caewity Occurrence rtatltiplied times a fraction the numeata of which b the number of days from the Tatar of fal file OsNwry Date of the Unit a fb) the dw dab of the payment irrstadiately preceding such Gswhy Occurrence until the dw dal of the payment dw hereunder n -esDect of sud- Cesuafty Oeawranee and tM derronwata of which b 380. Lessee, at its expsne, shsH keep aaeh Unit inswad against N risks fa not less than the appNcabb beginning Babrtce witlt respect to such Unit and shN maintain comprehensiwpublic NabiNty insunncs covering each Un)t fa not less than f 1,000,000 f a combined coverage fa bodNy injury and property damage- AN insurance shah (ai be in a form and with such companies as Lessor sMN approve, Ib) specify Lassa fa its designee) and Loses as named insureds, (c) be primary, wkhout right of coedibtrtionfrom arty offer iraurartce carried by Lessor, {dl provide that such iraunnce may not be cartceNsdor shored so as to affect the imerast of Lassa without at Ipst thirty t30) d.ri' aria written notice to Lessor, and le) norms Lassa {a its duignu) a bas payee and be payable solely to Lessor. Loses agrees to notify Lsssaof arty ootamncewhich may becaptM basis of an insunnpdeim heeundarand not to make any adjustmentwkh iratxars without Lessorspnor written consent. Lesae hereby irravocaDlyappoitt Luna )ts attorray-ir-dactb receive peynant of and endorse aN checks and otfte documentard to aka any other actions nscsssaryto purses iruursnce claims. Prior to 1M first DeNvery Dab of arty Unit, Lespe ahN defiwry to Lesor satbfsctorysvidertce of such ktaunncs towrope. 8. WAJVER AND BIDEMIrxTY: LEIZBEE IEREiY RELEASES ANY CLAIM NOW OR HEREAFTER E)OST1111G AGANNBT LE880R ON ACCOUNT OF, AND AGREES TO OFFEND, INDEMIEYAI~MOLDLEBSORi1ARN~E88FROM,ALLp.ANIN80F LE8SfEAND/ORTWRD PARTIEStMICLUDNNO.NRTFiOUT LNNITATION. CLANKS EASEDUPON STRICT WBILITY IN TORT AND FOR CONSEOUEJS"ML DAMAGES), LOSSES, DENNANDB, LIAbAR1Ei, SUITS AND ,JUDGMENTS, AND ALL C08T3 OR EXPENSES NN CONNECTK)N TTNJNEWITH, INCLUDNO ATTORIEY'8 FEES AND E7~ElISES, WT9CH MAY RESULT FROM OR ARISE OUT OF THE BELECTION, PURClU1SE, DELIVERY f WCLUDMIG ANY DELAY MI OR FAILURE OF DELNERYT, OONDITION, USE, OPERATaN, OYVNEASTBP, NNA/iTENANCE OR REPAIR OF ANY UNiT MYOR TO, DURING OR SUNISEQUENT TO NN71L SUCH UTRT LR RETURNED TO LE880RlUR8UANTTO BECTION 10) THE LEASE TERM A8 TO TTE UNIT, OR WFNCH MAY SE ATTRIbUTAbLE TO ANY DEFECT NY ANY UIrNT ARISNVO FROM THE MATERIAL USED TTEREII OR FROM THE DESIGN, MANUFACTUtiE OR TESTIUKK;> TIfEREOF, OR FROM ANY UBE, MAN~ITENANCE OR REfARi OF ANY UNIT, REGARDLESS OF WH6il SUCH DEFECT 811At1 !E DISCOVERED, WHETTER OR NOT THE UNIT M NN THE POS8E8SION OF LESSEE AND NO MATTER WFERE R M LOCATED. 9. EVENTS OF DEFAULT; RENNEDES: Each of the foNowing shN caratituta an 'Event of Default' hereunder: (a) Lessee shah fah to make any payment to Lassa when dos; Ibl any npreprtttlortor warrsnty of Lesseecorttairadttereirt a inany documsrttfumbhed to Iseor in cortrtectlon herowith shah bs incorrect a misleading when made; (e) Lessushall fail to obeerw a perform any other covenant, agroamenta warranty roads by Lassa Mrwnder end such faikxe shall continw fa ten (101 days after written notice thereof to fusee; fd) l.psee shM taN b make any ptyrtant on its horded irtdsbtednee when des; or (el there shah De a defauk by Lessee under any Defter agreement betwpn Lsuor and Lease. If any Event of Default shah occur, Lassa, st its option, may ia) proceed by appropriate court action(s) to enforce this Lsass a to recover damages for the breech thereof; fbl by notice to writlrq to Lasso, terminate this Lease, but Leap shah rortain Nable a hereinafte provided, and there upon Lessor may, at )a option do sny one a more of the folowing: 1b-11-eeover forthwith from Lessp I8 any and N amounts than dos under this Lease a which may haw accrwd to the data of sutA termination, iii) as damage fa loss of the bargain and not as a penalty, a sum egwi to the payments des wkh respectto tfa Un)b during the balance of tM Rscal year, and ('a'q any additlortal damages and e~ensesustined by Lassa M noon of the bred- of any covenant, roprpentationor warranty conta(nsdin this Lease other than for the payment of amamts des hereunder, (b-2) enforce the security interet given heratrde, {b-31 without rtotiq, NabNity a legal proeeu, srtte upon tM premises where any of the Units maybe and eke poeessiontheeof,end (b-4) requks lessee to return tM Units a provided in Section 10. Lessor staN haw aN rights given to a secured party by law. Provided Lessor receives poesssionof the Units following an Event of Defsult, Lassa may, at its option, undertake contrrterciaNy roasorabls effort to sN a rs-lease tM Units, and the protects of sny such ssk a re-kau slwN be appNed: fast, to reintbrrrse Lassa fa all roasonabte experras of -etakitg, holding, preparing for uk a ro-lease end seNing a ra-Mask-p tits Unix, inchrdirtg N txes and raasonabN attorney's fees and experaes; aecotd, to tea extent oat previouHy paid by Lassa, to pay Lessor N amount, except those spedfied bsbw, which under the terms of this Luse aro des a haw accrued p of tM deb Of Lessors receipt of aid proceeds; third, to pay aN late payment charges pursuant to Section 2 hereof; and fourth, to pay Lessor tM appYcabb Termination Valve wish respect b tM Units. Any surpkrs ehN M paid to tfa pawn entithd theeto. Lessee shah Promptly pay any deficierayto Lesor. Lessp acknowledgethat sales for cash a on credit to a wholesale, retailer a war of tfa Units errs aN commsrdaNyroasonabb. Leese agree to pay all -usonabbattomey'sfeeand aN cosaand expense intoned by Leeaa in eNoreing fhb Lease. Thor remsdas ftereit provided shah be cumulative and in add'rtiort to aN other romsdiu at law a in equity; provided, however, Lessor shah not be sntitfed to recover a grater amount in damages than Leeor could haw gained through Lease's full, timely and complsb performance under this Lsass, plus aN foss, costs and experapirtcwred by Lassa in enfordrtg feels Lease and aN late P.ym.nt charges purswMto Section 2. M Leese fa'Is to perform any of its obligstiorts under this Lsass, Lessor may (but need riot) at any tins thesafte perform such obNgatan, and tM expense intoned in connection therewith shsN be paribb by Lseee upon demand. 10. RETURN Of UNIT: Upon any temiraton of tM tam of the lsue with rospectto sash UMt a H Lassa shah rightfully demand posseuiort of any Unit, Lessee, at it e~ertse, shah forthwitA deNve the lilrNt b Lassa, app-opriatNyprotectad and in file cortdkion required by Section 4, at the option of Lassa, to the premises of the nersst Gtsrpiar defer seNktg egrriprrtertt of file same type u flee Unit, a on board such carrier u Lassa shah epedfy and shipping tM arse, freight coNect, to the detination deignatsd by Lassa. ff tM Unit is not in tM cortditlort requkad by Section 4, Lasses shad pay to Lassa, on damsnd, aN costs and expanse incumd by Lessor to bring tM Unit into said condition. 11. REPORT TO RtB: Lassen wiN report this Leap b the kttertat Rswnw Service by fNing Form 8038.0, 8038-QC a 8038 whichwer is appNcabla. FaNuro to do so wi cause the Lesp to lose its tx exempt states. Lesp agree teat if the appropriate form b not fNed, the Mteret nb wNl bs adjusbd b an equivalent txabb ktterest nts. 12. TITLE. BECUItlTY NiTEREBT AND WRTTER A88URANCEB: Provided IN Lassa Ms aeceptedeach Urtlt on its deNwry dab; (bl the Ds6vey Dsts of the Unit b on a prim to the Credit Utizatlort Data noted on tie few henot; std (cl no Event of Default axles as of tM DeNwry Dats of tM Unit, tiW to each Unit shN vest in Luse on tea Delivery Dsts of tM Unit, provided, however, that in lice want (8 this Leap b tenttinated pursuant to Sectlort 1 heeof, a IN- an Event of Defauk has occurred and b continuing, tkls to tM Unit ahaNimrnaaatNyravutinL,usor,irpofartyrlpftt,titMandirttarptofLassaa,unhuLsuoreklctoUarwisaktwridng. LassphanbypnnttoLessaaeornirtuinpsscur(tyintersst in tM Units, itdtrdYtg aN atacltntsnts,accesoriesand optional fstture (wMtMr or not instaNed thereoni and aN atrbattluttons,replaesrrtena, addklon and acceeionsthsrsto, and N proceeds of aN of flee foregoing, to eaten tM payment of N suns des. Lessee wiN, at it expertp, do arty further act end szeeute, ackrawledge, deNve, file, register and record arty ittrlteer doasrtsnt wNdt Lassa may roasonabN request in ads to protect Lessor's security kttersst in tea UNa and keaaors fights and benefit under this Lsass. t 3. ANI81GNNl~NT; OOtJNTERPARTB: WRltout tM prior written consent of Lesor, no assignment of this Lee a any right a obNgstion heetwtder nay bs made by Loup a any assigrtseof Lessee. Lassa may rat assign its right, title and inteeet in and b this Leu and the Units and/or grsM or assign a sectaRy faterest in this Lassa and tM Units. in veltob or in part' Ahlaeegh natltlple cotartterpeaof fhb docrxrarrt may be signed, ony the cotsrterpart accepted, acknowNdgedand Certified by GterpNbr financial Service Corporation on the sigrattafe papa theroof a tM original wNi eoratlhrb origktal eltettel paper. 14. EfIFECT OF WANER: No delay a omission to exerdp any right a romedy ace-uirp b Lessor herwnde shN fmpaN arty such right a romedy nor shah it be conatnad to be a waiver of any brucl- a default of Lessu. Any waiver a Conant by Lpsor under this Lease must M in writing sjtecl~CaNy sat forth. This t.epe completsty seta the rights of Lassa and Castes with rospeetto tM Unit and nrpersedpaN prbr spreemartt wkh nspeathereto. Tines b of the eeenceof fhb Leap. No variation a modificatbnof this Lsass sttN bs vaNd urYps in wrking and signed DY the wtltorized rep-eerttaWeof Leases and Lasso. AN ratlce Mrwndsr shah ba in writktg, addressedto ech party at the addrse sat fortfi an 1M front of this Lau a at such otftsr addree u may be fumNMd in writlrtg. Many provision of tills Leaaa staN be NvaNd urtde any appNcabN law, such provision shah be deemed omitted but tM romefnkq provlNortt ehN be glwn effect. AN obNgatlon of Leep under this Leap shah suMw tla expiration a termination of fhb Leap to tlts extent ngtied fa thek fuN obaervartce and performanq. 15. IiENERAL: The Lease shah be gowrrad by and constrwd urde the laws of tM State where the Units errs heated. To: Caterpillar Financial Services Corporation OPINION OF COUNSEL Re: Governmental Lease-Purchase Agreement Dated as of (the "Lease") B~etw~epen Ca*ter~pillar Financial Serv*ic~es,,uCorporation ('Lessor") and Sir/Madam: I am an attorney for Lessee, and in that capacity I am familiaz with the above-referenood transaction, the Lease, and all other documents pertaining to the Lease. Based on my examination of these and such other documents, records and papers and matters of fact and law as I deemed to be relevant and necessary as the basis for my opinion set forth below, upon which opinion Lessor and any subsequent assignee of Lessor's interest may rely, it is my opinion that: 1. Lessee is a fully constituted political subdivision or agency duly organized and existing under the Constitution and laws of the State of TEXAS and is authorized by such Constitution and laws to enter into the transaction contemplated by the Lease and to carry out its obligations thereunder. 2. The Lease and all other documents contemplated by the Lease have been duly authorized, executed and delivered by Lessee and constitute valid, legal and binding obligations and agreements of Lessee, enforceable against Lessee in accordance with their terms. 3. The person or persons who have executed and delivered the Lease, and all other documents contemplated by the Lease were authorized to~do so on behalf of Lessee. 4. No further approval, license, consent, authorization or withholding of objections is required from any federal, state or local governmental authority with respect to the entering into or performance by Lessee of the Lease or the Schedules(s) and the transactions contemplated thereby, and Lessee has sufficient appropriations or other funds available to pay all amounts due under the Lease for the current fiscal yeaz. 5. The interest payable to Lessor by Lessee under the Lease is exempt from federal income taxation pursuant to Section 103 of the Internal Revenue Code of 1986, as amended. 6. The entering into and performance of the Lease and all other documents contemplated by the Lease will not conflict with or constitute a breach or violation of any judgment, consent decree, order, law, regulation, bond, indenture or contract, applicable to Lessee or result in any breach of, or consitute a default under, or result in the creation of any lien, chazge, security interest or other encumbrance upon any assets of Lessee or the units leased under the Lease pursuant to, any indenture, mortgage, deed of trust, bank loan, credit agreement or other instrument to which Lessee is a party or by which it or its assets may be bound. 7. There is no litigation, action, suit or proceeding pending or, to the best of my knowledge, threatened against or affecting Lessee in any court or before any governmental commission, board, agency, arbitrator or authority which, if adversely determined, will have an adverse effect on the ability of Lessee to perform its obligations under the Lease. In addition, I am not aware of any facts or circumstances which would give rise to any litigation, action, suit or proceeding relating to or potentially adversely affecting the ability of the Lessee to perform its obligations under the Lease. 8. The units leased under the Lease are personal property and, when subject to use by Lessee, will not be or become fixtures under the laws of the State of TEXAS. 9. The authorization, approval and execution of the Lease, the Schedule(s) and all other documents contemplated by the Lease and all other proceedings of the Lessee related to the transactions therein and contemplated thereby have been performed in accordance with all open rneeting laws, public bidding laws, and all other applicable laws of the State of TEXAS. 10. The Lessor will have a perfected security interest in the Units upon filing with the Secretary of State for the State of TEXAS and/or the of at the time of acceptance of the Units of an executed UCC-1 or other financing statement. Yours sincerely, Form No. 0008-5193 Si Name (PRINT): ~µe~ HAr-L tr-l • P ~ t, •rrr.0 Title: ~'(TottnJ[`f FOR ~tzRR Couw~'ny Date: ~ M.~/~i.. LS' / 4 4'I Aadress: q',~ 1 ~i~ .ST, ~ ~ ~+~ s .E-s ~ X102 Telephone: "?it O- ~'! b ' 7stDt~ A64151 03/11/97 04:45PMCP R ,f To: Caterpillar Financial Services Corporation OPINION OF COUNSEL Re: Governmental Lease-Purchase Agrcemeat Dated as of (the 'Lease") Between Caterpillar Financfal Services Corporation ('Lessor") and IGrRR COUNTY ("Lessee"). Sir/Madam: I am an attomty for Lessee, and in that capacity I am familiar with the above-referenced transaction, the Lease, and all other documents pertaining to tbe Lease. Based on my examination of these and such other documents, records and papers and matters of fact and law as I deemed to be relevant and necessary as the basis for my opinion set forth below, upon which opinion Lessor and any subsequent assignee of Lessor's interest may rely, it is my opinion that: 1. Lessee is a fully constituted political subdivision or agency duly organized and existing under the Constitution and laws of the State of TEXAS and is authorized by such Constitution and laws to enter into the transaction contemplated by the Lease and to carry out its obligations thereunder. 2. The Lease and all other documents contemplated by the Lease have been duly authorized, executed and delivered by Lessce and constitute valid, legal and binding obligations and agreements of Lessee, enforceable against Lessee in accordance with their terms. 3. The person or persons who have executed and delivered the Lease, and all other documents contemplated by the Lease were authorized to do so on behalf of Lessee. 4. No further approval, license, consent, authorization or withholding of objections is required from any federal, state or local governmental authority with respect to the entering into or performance by Lessee of the Lease or the Scheduler(s) and the transactions contemplated thereby, and Lessee has sufficient appropriations or other funds available to pay all amounts due under the Lease for the current fiscal year. 5. The interest payable to Lessor by Lessee under the Lease is exempt from federal income taxation pursuant to Section 103 of the Internal Revenue Code of 1986, as amended. 6. The entering into and performance of the Lease and all other documents contemplated by the Lease will not conflict with or constitute a breach or violation of any judgment, consent decree, order, law, regulation, bond, indenture or contract, applicable to Lessee or result in any breach of, or constitute a default under, or result in the creation of any lien, charge, security interest or other encumbrance upon any assets of Lessee or the units leased under the Lease pursuant to, any indenture, mortgage, deed of trust, bank loan, credit agreement or other instrument to which Lessee is a party or by which it or its assets may be bound. 7. There is no litigation, action, suit or pmceeding pending or, to the best of my knowledge, threaiened against or affecting Lessee in any court or before any governmental commission, board, agency, arbitrator or authority which, if adversely determined, will have an adverse effect on the ability of Lessee to perform its obligations under the Lease. In addition, I am not aware of any facts or circumstances which would give rise to any litigation, action, suit or proceeding relating to or potentially adversely affecting the ability of the Lessee to perform its obligations under the Lease. 8. The units leased under the Lease are personal Property and, when subject to use by Lessee, will not be or become fixtures under the laws of the State of TEXAS. 9. The authorization, approval a~ execution of the Lease, the Schcdule(a) a~ all other documents contemplated by the Lease and all other proceedings of the Cesare related to the transactions therein and contemplated thereby have been performed in accordance with all open meeting laws, public bidding laws, and all other applicable laws of the State of TEXAS. 10. The Lessor will have a perfected security interest in the Units upon filing with the Secretary of State for the State of TEXAS and/or the of at the time of acceptance of the Units of an executed UCC-1 or other financing statement. Yours sincerely, Si Name (PRINT): ~N~owA-~ W• ~e~cM~rtL~ Title: l4-T'TdRI~J[•f f~-c~R ~~C~ ~.o~'~~ hate: f ~ae c.µ ?.~ ; /49''7 Q.~~ ~'VI ~.. ,,,~.~ • ~oz~ Telephone: 21 ~ - ~ ~o ' 7 S'o 0 Form No. 0008-5/93 A64151 03/11/97 04:45PMCT CONSTRUCTION EQUIPMENT APPLICATION SURVEY RIDER To Agreement dated as of Between Caterpillar Financial Services Corporation and KERB COUNTY Model: Attachments: NOTE: ff machine is to be used in a landf~II, demolition, t-ansfe- station, ncyc:fkp application, soap yard, steel mill, salt, chemical, corrosive, rendering, or hazardous waste environment, circle the appropriate aforementioned application; describe the exact application and working environment of the machine: then sign below. his not necessary to complete the remaining portions of this application survey. You will also need to consult your Caterpillar Fnancial Services Corporation regional office to obtain the necessary quote data. COMPLETE THE FOLLOWING STEPS: 1. Choose the appropriate MARKET CATEGORY and circle the BASE number (one category per survey form). 2. Complete only this MARKET CATEGORY LINE BY CIRCLING QNE number under SECTION A (TOTAL HOURS PER YEAR) and ONE number under SECTION B (U/C, SHEET METAL OR TIRE/BELT CLAUSE). 3. Add or subtract as necessary the THREE circled numbers starting with BASE and enter in the TOTAL POINTS column. (SECTION A) (SECTION B) TOTAL HOURS PER YEAR UlC,SHEET METAL,OR TOTAL TIRE/BEIT CLAUSE POINTS MARKET CATEGORY' BASE 0-1200 1201-2200 2201-4000 4001-5000 5001 + YES NO HEAVY CONSTRUCTION 4 2 1 -1 -2 -3 +2 -1 BUILDING CONSTRUCTION 4 2 1 -1 -2 -3 +2 -1 MINING/AGGREGATE 4 2 1 -1 -2 -3 +2 -1 AGRICULTURE 4 2 1 -1 -2 -3 +2 -1 FOREST PRODUCTS 3 2 1 -i -2 -3 +2 -1 PAVING PRODUCTS 3 2 1 -7 -2 -3 + 1 -1 INDUSTRIAL 5 1 -1 -2 -3 -4 + 1 -1 GOVERNMENTAL ~` 1 ~ -2 -3 -4 + 1 ~~ This application survey is considered to be an int r part of the binding contract between the lessor and lessee. The information obtained from title survey will bs of ariman- imuortance in the contract payment schedule. Any change in the location, severity of app cation, hourly usage andlor attachments or configuration must be approved in writing by Caterpillar Finandal Services Corporation. IMPORTANT NOTE: In addition to the lessors other rights hereunder and not in lieu thereof, lessee shall pay lessor additional rent for each hour in excess of the maximum hours established for the tease. The Associated Equipment Distributors Green Book will be used as a base for determining an excess hour rental rate. Take 40% of the Published Associated Equipment Distributors monthly rental rate and divide by 176 to establish the hourly rate. Take this hourly rate times the total additional hours over the maximum used in the lease. The maximum number of hours established for this unit are . The calculated sum will be due upon receipt of invoice. NOTE: SIGNATURES ARE REQUIRED ON THE REVERSE CONSTRUCTION EQUIPMENT 'MARKET DEFlNITIONS HEAVY CONSTRUCTION BUILDING CONSTRUCTION MININGlAGGREGATE AGRICULTURAL FOREST PRODUCTS PAVING PRODUCTS INDUSTRIAL GOVERNMENTAL - All highway/road construction, dams, raitroads, airports and large earthmoving projects, including landfill site preparation. - Ali site development, sewer/water and utilities construction relating to buNding projects. - AI- metal and non-metal including quarries and sand/gravel operations. - AN machines other than Challenger Tractors that ars used in the preparation and harvesting of farm products. - All timber harvesting, handling, logging road construction, sawmills and loggirq yards. - AN Caterpillar paving products, including compactors used for soN compacting exduding the B00 series. - AN madtines used inside an industrial plant a compMx for the purpose of handling raw materials, finished products or any other task requKOd. (Machines are owned or leased by the plant itself.) - AN madHnes used by governmental entities for routine road mairKenance, snow -emovel and other light applications. NOTE: APPLICATION SURVEY MUST BE SIGNED BY LESSEE AND AUTHORIZED DEALER REPRESENTATIVE. Lessee: KERR COUNTY Signature Name (Print) BERT A. NSON Title COUNTY JUDGE Date 3-27-97 Reviewed by• CFSC Region Office Dealer: B. D. HOLT COMPANY Signature Name (Print) Title Date Form No. ASCONST - 11/95 Af34151 03!11/97 04:45PMCT CONSTRUCTION EQUIPMENT APPLICATION SURVEY RIDER To Agreement dated as of Between Caterpillar Financial Services Corporation and KERB COUNTY Model: Attachments: NOTE: M machine is to be used in s landfill, demolition, transfer station, recycling application, soap yard, steel mill, salt, chemical, corrosive, rendering, or hazardous waste environment, circle the appropriate aforementioned application; describe the exact application and working snvvonment of the machine: then sign below. his not necessary to complete the remaining portions of this application survey. You will also need to consult your Caterpillar Financial Services Corporation regional office to obtain the necessary quote data. COMPLETE THE FOLLOWING STEPS: 1. Choose the appropriate MARKET CATEGORY and circle the BASE number (one category per survey form). 2. Complete only this MARKET CATEGORY LINE BY CIRCLING QNF number under SECTION A (TOTAL HOURS PER YEAR? and QNE number under SECTION B (U/C, SHEET METAL OR TIRE/BELT CLAUSE). 3. Add or subtract as necessary the THREE circled numbers starting with BASE and enter in the TOTAL POINTS column. (SECTION A) (SECTION 8) TOTAL HOURS PER YEAR WC,SHEET METAL,OR TOTAL TlRE/BELT CLAUSE POINTS MARKET CATEGORY" BASE 0-1200 1201-2200 2201.4000 4001-5000 5001 + YES NO HEAVY CONSTRUCTION 4 2 1 -1 -2 -3 +2 -1 BUILDING CONSTRUCTION 4 2 1 -1 -2 -3 + 2 -1 MININGIAGGREGATE 4 2 1 -1 -2 -3 +2 -1 AGRICULTURE 4 2 1 -i -2 -3 +2 -1 FOREST PRODUCTS 3 2 1 -1 -2 -3 +2 -1 PAVING PRODUCTS 3 2 1 -1 -2 -3 + 1 -1 INDUSTRIAL 5 1 1 - -2 -3 -4 + 1 -1 GOVERNMENTAL G 1 ~ ;, tJ -2 -3 -4 + 1 G1 ~_ This application survey is considered to 6e an in rat part of the bindins~ contract between the lessor and lessee. The information obtained from this survey will be of primary imaortance in the contract payment schedule. Any an a in the location, ssvedty of application, hourly usage andlor attachments or configuration must bs approved in writing by CaterpiNar Finandal Services Corporation. IMPORTANT NOTE: In addition to the lessors other rights hereunder and not in lieu thereof, lessee shall pay lessor additional rent for each hour in excess of the maximum hours established for the lease. The Associated Equipment Distributors Green Book will be used as a base for determining an excess hour rental rate. Take 40% of the Published Associated Equipment Distributors monthly rental rate and divide by 176 to establish the hourly rate. Take this hourly rate times the total additional hours over the maximum used in the lease. The maximum number of hours established for this unit are . The calculated sum will be due upon receipt of invoice. NOTE: SIGNATURES ARE REQUIRED ON THE REVERSE CONSTRUCTION EQUIPMENT 'ItiurtlxET o~wmoivs HEAVY CONSTRUCTION BUILDING CONSTRUCTION MINING/AGGREGATE AGRICULTURAL FOREST PRODUCTS PAVING PRODUCTS tNOUSTRIAL GOVERNMENTAL - AR hphwaylroad construction, dams, railroads, airports and large earthmoving projects, including landfill site Preparation. - AM site devebpmeM, sewer/water end utilRias construction relating to building projects. - AM metal and non-metal including quarries and send/grave{ operations. - AN machines other than Challenger Tractors that are used in the preparation and harvesting of farm products. - AM timber harvesting, handling, bgging road constructbn, sawmills and bgging Yards. - Aq Caterpillar paving products, including compactors used for soil compacting excluding the 800 aeries. - AN machines used inside an industrial plant or complex for the purpose of handling raw materiels, finished products w any other task required. (Machines are owned a based by the plant itself.) - Ali machines used by goverrxnontal enthias for route road maintenance, avow removal and other light applications. NOTE: APPLICATION SURVEY MUST BE SIGNED BY LESSEE AND AUTHORIZED DEALER REPRESENTATIVE. Lessee: KERB COUNTY Signature Name (Print/ .-. T-rtie ~fY ~~ ~~~~~ Date Reviewed by: CFSC Region Office Form Na. ASCONST - 11!95 Dealer: B. D. HOLT COMPANY Signature Name (Print) Title Date A64151 03/11/97 04:45PMCT t :, Attachment to Governmental Lease-Purchase Agreement Dazed as of between ifGill~ COVl\ 1 1 ("L.G.IJGG~) and Caterpillar Financial Services Corporation ("Lessor") RENTAL PAYMENT SCHEDULE Payment Numbers Payment Amounts Due O1 - 60 S 1,035.00 S 61 - 96 1,225.08 KERR COUNTY (Lessee) Signature d~ K~--- Name (P Title Date Caterpillar Financial Services Corporation (Lessor) Signature Name (PRINT) Title Date Form No. 0028-5/93 A64151 03/11197 04:45PMCT Attachment to Governmental Lease-Purchase Agreement Dated as of between KERR COUNTY ("Lessee") and Caterpillar Financial Services Corporation ("Lessor") RENTAL PAYMENT SCHEDULE Payment Numbers Payment Amounts Due O1 - 60 S 1,035.00 61 - 96 S 1,225.08 KERR COUNTY Caterpillar Financial Services Corporation (Lessee) (Lessor) Signature jam-- ~ ( Signature Name (PRINT) y~C ~'v Name (PRINT) Title ~ T U [~ ~ Title Date Date Form No. OOZ&5/93 A64151 03/11/97 04:45PMCT EQUIPMENT: (1) 924 Caterpillar WHEEL LWIDER SNN~967 RE: INSURANCE COVERAGE FOR LEASED EQUIPMENT Per the Lease agreement between KERR COUNTY 700 MAIN ST SERRVII.LE, TX 78028 and Caterpillaz Financial Services Corporation ("Caterpillaz Financial"), it is required that we be provided with insurance coverage in accordance with that agreement as indicated below. P'hysicat Damage Coverage must sho7t~ that Catesgillar Financial has been named loss payee for the ogttipmeat'a replacement vafie. 'I7te dedtir~'ble~muat. be Liabillty Cowe[age of a minimum of SI,000,000 or combined coverage for bodily injury and pcopecty damage pet occatrizacx. Caterpillar Finatcial must b~'l ``~'' Please notify your agent for the proper coverage, and list his name and location below. Our representative will follow up for confirmation of this coverage. IIVSURANCE AGENT: TEXAS ASSOCIATION OF COUI~~s~~. PERSON: P.O. BQX 231 ADDRESS: Austin , X 7 8 7 6 8 PHONE xv1~ER: 8 0 0- 4 5 6 -5 9 7 4 IF EQUIPMENT HAS BEEN DELIVERED, wHEN WAS 1T DELIVEREDT PROCESSING OF THIS TRANSACTION WILL BE HELD PENDING RECEIPT OF THLS INFORMATION. PLEASE FORWARD CERTIFICATE TO: Caterpillar Financial Services Corporation, Insurance Service Center, P.O. Boz 1400, Coraopolis, PA 15108 Form No. I0034-9/95 A64151 03/11/97 04:45PMCT Caterpillar Financial Services Corporation INVOICE .... ...?'?~ /l:.i.:. \\v:Er.x{vtix. v o.v vx r"cFi.'./.itv:::;:%:if::4Rti\i::#~:;;>~:::::~r::~. 1 03/11 /97 LSAP-40A64151 KERR COUNTY 700 MAIN ST KERRVILLE, TX 78028 fvk:: i' r.: .. .. :.::R}:•c:::::5:':\::\::+;::;:;i`::v::::: :r.'t:::}:::ti::::::::.:::i::::x'.,::::r>::2::::::;+r:':%:~~::i:;r~:~:::::' ..:.. v \): ti::: is .................:.. x:::. ~:::::::: :.::xw::::.v.. x. +...A..k..}ii::~/. x:~v::::: 1.v • ......ti, .. :: x:. .v: •. (1) 924 SNN009b7 Upon Receipt. 1 1,035.00 Caterpillar WHEEL LdIDER Sales and Use Tax 0.00 RETURN PAYMENT COPY AND CHECK FOR SPECIFIED PAYMENTIS) WITH SIGNED LEASE DOCUMENTS. Your check will be cashed by Lessor upon receipt, but that act will not constitute acceptance by Lessor of the Lease or Schedule. If Lessor accepts and executes the Lease and/or Schedule, the proceeds of this check.will be applied to the specified rental payments. ff Lessor does not accept the Lease or Schedule, Lessor will return an amount equal to this check. WITHOUT TAX EXEMPTION CERTIFICATE, APPROPRIATE SALES/USE TAX WILL BE CHARGED. PLEASE PAY THIS AMOUNT 8 1,035.00 ..::.:. .~v~. ~ ...::,.....: .. -,:::.: i t-x~'' +.i Yx ~.; :..nnivv8ii}: i ... ;y.}i}.iY~..1: ~.: v: _: ..: .. yv ~xn••.v.i:v n .v. :. ~.~i •:..v:vi• h A: Fi:ii: }::j h ...%-Xe$.tM.Nt1 {4C•:.k..+fik':•}ti-.i..?:~v::...:.ttJ:.}HS.. F-: a'..i:..v'.i:;v.. v'._.:. •._: ._. :.. :~::.; LSAP-40A64151 S KERB COUNTY 700 MAIN ST KERRVILLE, TX 78028 Remit To: Caterpillar Financial Services Corporation 4975 Preston Park Blvd. Plano, TX 75093 fATERPILLAR' Caterpillar Financial Services Corporation 4975 Preston Park Boulevard, Suite 280 Plano, Texas 75093 (972) 985-6900 Fax (972) 985-6925 April 23,1997 Kerr County 700 Main Street Kerrville, TX 78028 RE: Contract # 56695 Dear Customer, Enclosed you will find your copies of the documents covering the equipment recently leased with Caterpillar Financial Services Corporation. Please take a moment to review these documents carefully. An amortization schedule is enclosed for your convenience. However, should you require an early payoff you must contact our Customer Services Department for an accurate amount. Your payments are due on the 8th of each month at $ 1,035.00 for the 1st 60 months, $ 1,225.08 for the rest of the term plus any applicable taxes. These should be mailed on or before the due date to insure time for processing through the U.S. Postal service. Mail to: Caterpillar Financial Services Corporation P.O. Box 60197 St. Louis, MO 63160 We appreciate your business and look forward to serving you. Keep these documents in a safe place for future reference. Our Customer Services department can be reached at 1-800-353-2372 should you have any questions over the life of your contract. Sincerely, CUSTOMER SERVICES DEPARTMENT File~(~ay o'tA D 19~~IME ___ _ PATRICIA DY CI rk County f.~~ur. Kr;r ounto axas Y~ ~y_ ~~~__._ _ _ ;ir enclosures P.S. Please take a few minutes to tell us how we are doing. Your opinion and experience will help us serve you better. Thank you 04/22/1997 Page 1 KERR UNTY #56695 Compound Period ......: Monthly Nominal Annual Rate ..: 5.900 Effective Annual Rate .: 6.062 Periodic Rate .............: 0.4917 Daily Rate .................: 0.01616 CASH FLOW DATA Event Start Date Amount Number Period End Date 1 Loan 04/08/1997 84,125.00 1 2 Payment 04/08/1997 1,035.00 60 Monthly 03/08/2002 3 Payment 04/08/2002 1,225.08 36 Monthly 03/08/2005 AMORTIZATION SCHEDULE -Normal Amortization Date Payment Interest Principal Balance Loan 04/08/1997 84,125.00 1 04/08/1997 1,035.00 0.00 1,035.00 83,090.00 2 05/08/1997 1,035.00 408.52 626.48 82,463.52 3 06/08/1997 1,035.00 405.44 629.56 81,833.96 4 07/08/1997 1,035.00 402.35 632.65 81,201.31 5 08/08/1997 1,035.00 399.24 635.76 80,565.55 6 09/08/1997 1,035.00 396.11 638.89 79,926.66 7 10/08/1997 1,035.00 392.97 642.03 79,284.63 8 11/08/1997 1,035.00 389.81 645.19 78,639.44 9 12/08/1997 1,035.00 386.64 648.36 77,991.08 1997 Totals 9,315.00 3,181.08 6,133.92 10 01/08/1998 1,035.00 383.46 651.54 77,339.54 11 02/08/1998 1,035.00 380.25 654.75 76,684.79 12 03/08/1998 1,035.00 377.03 657.97 76,026.82 13 04/08/1998 1,035.00 373.80 661.20 75,365.62 14 05/08/1998 1,035.00 370.55 664.45 74,701.17 15 06/08/1998 1,035.00 367.28 667.72 74,033.45 16 07/08/1998 1,035.00 364.00 671.00 73,362.45 17 08/08/1998 1,035.00 360.70 674.30 72,688.15 18 09/08/1998 1,035.00 357.38 677.62 72,010.53 19 10/08/1998 1,035.00 354.05 680.95 71,329.58 20 11/08/1998 1,035.00 350.70 684.30 70,645.28 21 12/08/1998 1,035.00 347.34 687.66 69,957.62 1998 Totals 12,420.00 4,386.54 8,033.46 22 01/08/1999 1,035.00 343.96 691.04 69,266.58 23 02/08/1999 1,035.00 340.56 694.44 68,572.14 24 03/08/1999 1,035.00 337.15 697.85 67,874.29 04/22/1997 Page 2 KERR COUNTY #56695 Date Payment Interest Principal Balance 25 04/08/1999 1,035.00 333.71 701.29 67,173.00 26 05/08/1999 1,035.00 330.27 704.73 66,468.27 27 06/08/1999 1,035.00 326.80 708.20 65,760.07 28 07/08/1999 1,035.00 323.32 711.68 65,048.39 29 08/08/1999 1,035.00 319.82 715.18 64,333.21 30 09/08/1999 1,035.00 316.30 718.70 63,614.51 31 10/08/1999 1,035.00 312.77 722.23 62,892.28 32 11 /08/1999 1, 035.00 309.22 725.78 62,166.50 33 12/08/1999 1,035.00 305.65 729.35 61,437.15 1999 Totals 12,420.00 3,899.53 8,520.47 34 01 /08/2000 1,035.00 302.07 732.93 60,704.22 35 02/08/2000 1,035.00 298.46 736.54 59,967.68 36 03/08/2000 1,035.00 294.84 740.16 59,227.52 37 04/08/2000 1,035.00 291.20 743.80 58,483.72 38 05/08/2000 1,035.00 287.54 747.46 57,736.26 39 06/08/2000 1,035.00 283.87 751.13 56,985.13 40 07/08/2000 1,035.00 280.18 754.82 56,230.31 41 08/08/2000 1,035.00 276.46 758.54 55,471.77 42 09/08/2000 1,035.00 272.74 762.26 54,709.51 43 10/08/2000 1,035.00 268.99 766.01 53,943.50 44 11 /08/2000 1, 035.00 265.22 769.78 53,173.72 45 12/08/2000 1,035.00 261.44 773.56 52,400.16 2000 Totals 12,420.00 3,383.01 9,036.99 46 01/08/2001 1,035.00 257.63 777.37 51,622.79 47 02/08/2001 1,035.00 253.81 781.19 50,841.60 48 03/08/2001 1,035.00 249.97 785.03 50,056.57 49 04/08/2001 1,035.00 246.11 788.89 49,267.68 50 05/08/2001 1,035.00 242.23 792.77 48,474.91 51 06/08/2001 1,035.00 238.33 796.67 47,678.24 52 07/08/2001 1,035.00 234.42 800.58 46,877.66 53 08/08/2001 1,035.00 230.48 804.52 46,073.14 54 09/08/2001 1,035.00 226.53 808.47 45,264.67 55 10/08/2001 1,035.00 222.55 812.45 44,452.22 56 11 /08/2001 1,035.00 218.56 816.44 43,635.78 57 12/08/2001 1,035.00 214.54 820.46 42,815.32 2001 Totals 12,420.00 2,835.16 9,584.84 58 01!08/2002 1,035.00 210.51 824.49 41,990.83 59 02/08/2002 1, 035.00 206.45 828.55 41,162.28 60 03/08/2002 1,035.00 202.38 832.62 40,329.66 61 04/08/2002 1,225.08 198.29 1,026.79 39,302.87 62 05/08/2002 1,225.08 193.24 1,031.84 38,271.03 63 06/08/2002 1,225.08 188.17 1,036.91 37,234.12 04/22/1997 Page 3 KERR UNTY #56695 Date Payment Interest Principal Balance 64 07/08/2002 1,225.08 183.07 1,042.01 36,192.11 65 08/08/2002 1,225.08 177.94 1,047.14 35,144.97 66 09/08/2002 1,225.08 172.80 1,052.28 34,092.69 67 10/08/2002 1,225.08 167.62 1,057.46 33,035.23 68 11 /08/2002 1,225.08 162.42 1,062.66 31,972.57 69 12/08/2002 1,225.08 157.20 1,067.88 30,904.69 2002 Totals 14,130.72 2,220.09 11,910.63 70 01 /08/2003 1,225.08 151.95 1,073.13 29,831.56 71 02/08/2003 1,225.08 146.67 1,078.41 28,753.15 72 03/08/2003 1,225.08 141.37 1,083.71 27,669.44 73 04/08/2003 1,225.08 136.04 1,089.04 26,580.40 74 05/08/2003 1,225.08 130.69 1,094.39 25,486.01 75 06/08/2003 1,225.08 125.31 1,099.77 24,386.24 76 07/08/2003 1,225.08 119.90 1,105.18 23,281.06 77 08/08/2003 1,225.08 114.46 1,110.62 22,170.44 78 09/08/2003 1,225.08 109.00 1,116.08 21,054.36 79 10/08/2003 1,225.08 103.52 1,121.56 19,932.80 80 11 /08/2003 1,225.08 98.00 1,127.08 18,805.72 81 12/08/2003 1,225.08 92.46 1,132.62 17,673.10 2003 Totals 14,700.96 1,469.37 13,231.59 82 01 /08/2004 1,225.08 86.89 1,138.19 16,534.91 83 02/08/2004 1,225.08 81.30 1,143.78 15,391.13 84 03/08/2004 1,225.08 75.67 1,149.41 14,241.72 85 04/08/2004 1,225.08 70.02 1,155.06 13,086.66 86 05/08/2004 1, 225.08 64.34 1,160.74 11, 925.92 87 06/08/2004 1,225.08 58.64 1,166.44 10,759.48 88 07/08/2004 1,225.08 52.90 1,172.18 9,587.30 89 08/08/2004 1,225.08 47.14 1,177.94 8,409.36 90 09/08/2004 1,225.08 41.35 1,183.73 7,225.63 91 10/08/2004 1,225.08 35.53 1,189.55 6,036.08 92 11 /08/2004 1,225.08 29.68 1,195.40 4,840.68 93 12/08/2004 1,225.08 23.80 1,201.28 3,639.40 2004 Totals 14,700.96 667.26 14,033.70 94 01 /08/2005 1,225.08 17.89 1,207.19 2,432.21 95 02/08/2005 1,225.08 11.96 1,213.12 1,219.09 96 03/08/2005 1,225.08 5.99 1,219.09 0.00 2005 Totals 3,675.24 35.84 3,639.40 Grand Totals 106,202.88 22,077.88 84,125.00 CATEf~PILLAR FINANCIAL SERVIt,ES CORPORATION GOVERNMENI~aL LEASE-PURCHASE AGREEMENT LESSEE: , KERR COUNTY "`A political agency or subdivision of the State of TEXAS" ADDRESS: 700 MAIN ST KERRVILLE, TX 78028 Dated as of r, `~~ ~j ~~~1~`f' LESSOR: CATERPILLAR FINANCfAL~ERVICESCORPORATION ADDRESS: 4975 Preston Park Blvd. Plano, TX 75093 Lessor, in reliance on Lessee's selection of the equipment described below ("Unit" or "Units"), agrees to acquire, lease, let and sell the Units to Lessee, and Lessee agrees to rent, lease, hire and purchase the Units from Lessor. Description of Unit(s) Serial# (1) 924 Caterpillar WHEEL LOADER 5NN00967 Location of Unit(s): 700 MAIN ST KERRVILLE, TX 78028 KERB Payment Schedule attached. Lease Term: 96 Months Credit Utilization Date: JUNE 30, 7997 PAYMENT PROVISION: Lessee shall pay to Lessor payments /including the principal and interest portion) in 96 consecutive monthly installments commencing on the Delivery Date. ADDITIONAL PROVISIONS: RIDERS: PAYMEMT SCHEDULE Construction Equipment Application Survey Rider TERMS AND CONDITIONS 1. LEASE TERM; NON-APPROPRIATIONS: The Lease term for each Unit shall commence on its "Delivery Date" (which is the later of the date on which (a1 Lessor executes this Lease, (b- Lessor takes title to the Unit, or Ic) Lessee or its agent receives possession or takes control of the Unit, provided the Delivery Date is on or prior to the Credit Utilization Date set forth above) and shall continue through the last day of Lessee's fiscal year in which the Delivery Date occurs and, thereafter, shall automatically be extended for successive annual periods coinciding with Lessee°s fiscal years. If the Delivery Date is not on or prior to the Credit Utilization Date, Lessee shall, at the option of Lessor, assume Lessor's obligations to purchase and pay for the Unit. Within seven days following the Delivery Date of each Unit, Lessee shall execute and deliver to Lessor a Delivery Supplement using Lessor's standard form. In the event no funds or insufficient funds are appropriated and budgeted or are otherwise not available in any fiscal year for payments due under this Lease, Lessee will immediately notify Lessor of such occurrence and this Lease shall terminate on the last day of the fiscal year for which appropriations were received without penalty or expense to Lessee, except as to the portions of payments herein agreed upon for which funds shall have been appropriated and budgeted or are otherwise available. Notwithstanding the foregoing, Lessee agrees that, to the extent permitted by law, it will not cancel the Lease under the provisions of this Section 1 if any funds are appropriated to it or by it for the acquisition, retention or operation of the Units or other equipment performing functions similar to the Units for the fiscal year in which termination occurs or the next succeeding fiscal year. 2. PAYMENTS; NET LEASE: During the Lease term, Lessee shall pay to Lessor, at the address stated above or such other location Lessor designates in writing, rent for each Unit as stated in the attached Payment Schedule and according to the above Payment Provision. An amount equal to one payment for all of the Units must accompany this Lease. If Lessor accepts and executes this Lease, said amount shall be applied to the first payment due. If Lessor does not execute this Lease, said amount will be returned to Lessee. If Lessor does not receive a payment on the date it is due, Lessee shall pay to Lessor, on demand, a late payment charge equal to the lesser of five percent (5%) of the payment not paid when due or the highest charge allowed by law, whichever is less. This Lease is a net lease, and Lessee shall not be entitled to any abatement or reduction of payment or any setoff against payment, whether arising by reason of any past, present or future claims of any nature by Lessee against Lessor or otherwise. Except as otherwise expressly provided herein, the obligations of Lessor and Lessee shall not be affected by an defect in, damage to, loss of possession or use of any Unit, however caused, by the attachment of any lien or other claim to any Unit, by any interference with Lessee°s use of the Unit, or for any other cause, whether similar or dissimilar to the foregoing, any present or future law to the contrary notwithstanding. 3. WARRANTY DISCLAIMER: Lessee acknowledges and agrees that la- each Unit is of a size, design and make selected by Lessee, Ib) each Unit is suitable for Lessee's purposes, (c) each Unit contains all safety features deemed necessary by Lessee, (d) Lessor is not the manufacturer of any Unit, (e) the vendor of any Unit is not an agent of Lessor, and (f) LESSOR HAS NOT MADE, AND DOES NOT HEREBY MAKE, ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE MERCHANTABILITY, CONDITION, QUALITY, DESCRIPTION OR DURABILITY OF A UNIT, OR ITS FITNESS FOR A PARTICULAR PURPOSE. Lessor assigns to Lessee, to the extent assignable, any warranties of a Unit by its manufacturer and/or vendor, provided that any action taken by Lessee by reason thereof shall be at the expense of Lessee. 4. POSSESSION, USE AND MAINTENANCE: Lessee shall not (a) use, operate, maintain or store any Unit improperly, carelessly, unsafely or in violation of any applicable law or regulation or for any purpose other than in the conduct of Lessee's business; (b) abandon any Unit; (c) sublease any Unit, permit the use of any Unit by anyone other than Lessee, change the use of any Unit from that specified in the attached Application Survey/Usage Rider, or change the location of any Unit from that specified above, without the prior written consent of Lessor, or (d) sell, assign or transfer, or directly or indirectly create or suffer to exist any lien, claim, security interest or encumbrance on any of its rights hereunder or in any Unit. The Units are and shall remain personal property irrespective of their use or manner of attachment to realty. Upon prior notice to Lessee, Lessor or its agent shall have the right (but not the obligation) at all reasonable times to inspect any Unit and maintenance records relating thereto. Lessee shall, at its expense and at all times during the Lease term, maintain SEE REVERSE SIDE FOR ADDITIONAL TERMS AND CONDITIONS LESSEE ACKNOWLEDGES HAVING RECEIVED A FULLY COMPLETED AND EXECUTED COPY OF THIS AGREEMENT Lessee: RR COUNTY By Name (PRINT L~l~4~c~1 ~rd~'V~~(~V Title ~~--- Lessor: CI By Name (PRINT) Title Date a~ / C/J / f / Date 112196) ~ A54151 03/11/97 04:45PM CT the Units in good operating order, repair and Condit. nd shall perform maintenance at least as frequently as se .rth in any applicable operator's guide, service manual, and lubrication and maintenanceguide for the Units. Lesseeshall not alter any Unit or affix any accessoryor equipmentto any Unit if such alteration or addition would impair the originally intended function or use or reduce the value of such Unit. Any alteration or addition to any Unit shall be the responsibility of and at the sole risk of Lessee. All parts, accessories and equipment affixed to any Unit shall be subject to the security interest of Lessor granted hereunder. If Lessor supplies Lessee with labels stating that the Unit is leased from Lessor, Lessee shall affix and keep them in a prominent place on the Unit. , 5. LESSEE'S REPRESENTATION AND WARRANTIES: Lessee represents and warrants to Lessor that (a) Lessee is a fully constituted political subdivision or agency duly organized and existing under the Constitution and laws of the state where the Units will be located; (b) Lessee has the power to enter into and perform this Lease and has taken all necessary and appropriate action to authorize the execution, delivery and performance hereof; (c) this Lease constitutesa valid and legally binding and enforceable obligation of Lessee; (d) the interest payable by Lessee hereunder is excludablefrom income for Federal incometaxation purposes pursuantto Section 103 of the Internal Revenue Code of 1986, as amended (the "Cade"); and le) Lessee has sufficient appropriations or other funds available to pay all amounts due hereunder for the current fiscal year and reasonably believes that funds can be obtained sufficient to make all payments during the term of this Lease. Lessee represents that the use of the Units is essential to Lessee's proper, efficient and economic operation. Lessee acknowledgesand agrees that the payments have been calculated by Lessor assuming that the interest portion of each payment is excludable from gross income for Federal income taxation purposes. Lessee represents, warrants and covenantsthat: (a) Lessee will comply with the information reporting requirements of Section 149(e) of the Code, as the same may be amendedfrom time to time, and such camplianceshall include but not be limited to the executionof informationstatementsrequestedby Lessor; (bl Lessee will not do or cause to be done any ect which will cause, or by omission of any act allow, the Lease to be an arbitrage bond within the meaning of Section 148(a) of the Code; (c1 Lessee will not do or cause to be done any act which will cause, or by omission of any act allow this Lease to be a private activity bond within the meaning of Section 141(a) of the Code; Id) lessee will timely pay to the eMent of available funds, amounts required to be rebated to the United States pursuant to Section 148{f) of the Code; (e) Lessee will not do or cause to be done any act which will cause, or by omission of any act allow, the interest portion of the payments to be or become includable in gross income for Federal income taxation purposes underthe Code; and (f1 Lessee will be the exclusive owner, user and operator of the Units, Lessee shall provide to Lessor an opinion of counsel substantially in the form attached hereto. 8. TAXES: Lessee agrees to promptly pay or reimburse Lessor for all fees and taxes of any nature, together with any penalties, fines or additions to tax, or interest thereon fall of the foregoing hereafter the "Impositions"), arising at any time prior to, during or subsequentto the Lease term and levied by any taxing authority with respectto or in connection with any Unit, excluding, however, taxes measured by Lessor's net income (of but not excluding eny net income taxes which, by the term of the statue imposing such tax, expressly relieve Lessee or Lessor from the payment of any Impositions which Lessee would otherwise be obligated to pay or reimburse). If Lessor is not entitled to a correspondingand equal deduction with respectto any Imposition which Lessee is required to pay or reimburse and such payment or reimbursement constitutes income to Lessor, then Lessee shall also pay to Lessor the amount of any Impositions which Lessor is obligated to pay in respect of (a) such payment or reimbursement by Lessee and (b) any payment by Lessee made pursuant to this sentence. Lessee shall prepare and file, in a manner satisfactory to Lessor, any reports or returns which may be required with respect to the Units. For purposes of this Section, "Lessor" shall include any affiliated group, within the meaning of Section 1504 of the Code, of which Lessor is a member for any year in which a consolidated or combined income tax return is filed for the affiliated group. 7. LOSS OR DAMAGE; INSURANCE: Lessee assumes all risks and liabilities of loss, damage or Casualty Occurrence las hereinafter defined) for any cause whatsoever, for condemnation of any Unit prior to, during or subsequentto (unfit the Unit is returned to Lessor pursuant to Section 10) the Lease term, and for injury to or death of any person or damage to any property in any manner arising out of or incident to the possession, use, operation, condition or storage of the Unit. If any Unit becomes damaged, from any cause whatsoever, Lessee shall give Lessor prompt notice thereof. If Lessor reasonablydeterminesthat such damage is not irreparable, then Lessee shall, at its expense, promptly restore the Unit to the condition required by Section 4 above. If any Unit becomes worn out, lost, stolen, destroyed or irreparably damaged (as reasonably determined by Lessorl from any cause whatsoever, or taken by condemnation or otherwise (any such occurrence hereafter a "Casualty Occurrence")prior to, during or subsequentto (until the Unit is returned to Lessor pursuant to Section 10) the Lease term, Lessee shall give Lessor prompt notice thereof. In the event of a Casualty Occurrence, Lessee shall pay to Lessor, on the earlier of Ia1 the first payment date following such Casualty Occurrenceor Ib) thirty (30) days following such Casualty Occurrence, a sum (the "Termination Value"- equal to (a) the "Beginning Balance' las specified in the attached Payment Schedule) as of the next payment due fallowing such Casualty Occurrence, plus (b) the amount of the interest portion (as specified in the Payment Schedule) of the next payment due following such Casualty Occurrence multiplied times a fraction the numerator of which is the number of days from the later of la- the Delivery Date of the Unit or Ib) the due date of the payment immediately preceding such Casualty Occurrence until the due date of the payment due hereunder in respect of such Casualty Occurrence and the denominatorof which is 360. Lessee, at its expense, shall keep each Unit insured against all risks for not less than the applicable Beginning Balance with respectto such Unit and shall maintain comprehensivepublic liability insurancecovering each Unit for not lessthan 51,000,000 for combined coveragefor bodily injury and property damage. All insurance shall (al be in a form and with such companies as Lessor shall approve, (b) specify Lessor (or its designee) and Lessee as named insureds, Ic1 be primary, without right of contribution from any other insurance carried by Lessor, Id) provide that such insurance may not be cancelled or altered so as to affect the interest of Lessor without at least thirty (30) days' prior written notice to Lessor, and (e) name Lessor (or its designee) as loss payee and be payable solely to Lessor. Lessee agrees to notify Lessor of any occurrence which may becomethe basis of an insurance claim hereunderand not to make any adjustmentswith insurers without Lessor'sprior written consent. Lessee herebyirrevocablyoppoints Lessor its attorney-in-factto receive payment of and endorse all checks and other documents and to take any other actions necessaryto pursue insurance claims. Prior to the first Delivery Date of any Unit, Lessee shall delivery to Lessor satisfactory evidence of such insurance coverage. 8. WAIVER AND INDEMNITY: LESSEE HEREBY RELEASES ANY CLAIM NOW OR HEREAFTER EXISTING AGAINST LESSOR ON ACCOUNT OF, AND AGREES TO DEFEND, INDEMNIFYAND HOLD LESSORHARMLESSFROM,ALLCLAIMS OF LESSEEAND/ORTHIRD PARTIES (INCLUDING, WITHOUTLIMITATION, CLAIMS BASED UPON STRICT LIABILITY IN TORT AND FOR CONSEQUENTIAL DAMAGES), LOSSES, DEMANDS, LIABILITIES, SUITS AND JUDGMENTS, AND ALL COSTS OR EXPENSES IN CONNECTION THEREWITH, INCLUDING ATTORNEY'S FEES AND EXPENSES, WHICH MAY RESULT FROM OR ARISE OUT OF THE SELECTION, PURCHASE, DELIVERY (INCLUDING ANY DELAY IN OR FAILURE OF DELIVERY), CONDITION, USE, OPERATION, OWNERSHIP, MAINTENANCE OR REPAIR OF ANY UNIT PRIOR TO, DURING OR SUBSEQUENTTO (UNTIL SUCH UNIT IS RETURNED TO LESSOR PURSUANT TO SECTION 10) THE LEASE TERM AS TO THE UNIT, OR WHICH MAY BE ATTRIBUTABLE TO ANY DEFECT IN ANY UNIT ARISING FROM THE MATERIAL USED THEREIN OR FROM THE DESIGN, MANUFACTURE OR TESTING THEREOF, OR FROM ANY USE, MAINTENANCE OR REPAIR OF ANY UNIT, REGARDLESS OF WHEN SUCH DEFECT SHALL BE DISCOVERED, WHETHER OR NOT THE UNIT IS IN THE POSSESSION OF LESSEE AND NO MATTER WHERE IT IS LOCATED. 9. EVENTS OF DEFAULT; REMEDIES: Each of the following shall constitute an "Event of Default" hereunder: (a) Lessee shall fail to make any payment to Lessor when due; (b) any representationor warranty of Lessee contained herein or in any document furnished to lessor in connection herewith shall be incorrect or misleading when made; {c) Lessee shall fail to observe or perform any other covenant, agreement or warranty made by Lessee hereunderand such failure shall continue for ten (10) days after written notice thereof to Lessee; Id) Lessee shall fail to make any payment on its bonded indebtedness when due; or le) there shall be a default by Lessee under any other agreement between Lessor and Lessee. If any Event of Default shall occur, Lessor, at its option, may (a) proceed by appropriate court action(s) to enforce this Lease or to recover damages for the breach thereof; (b) by notice in writing to Lessee,terminatethis Lease, but Lessee shall remain liable as hereinafterprovided, and there upon Lessor may, at its option do any one or more of the following: (b-1) recover forthwith from Lessee li) any and all amounts then due under this Lease or which may have accrued to the date of such termination, (ii) as damages for loss of the bargain and not as a penalty, a sum equal to the payments due with respectto the Units during the balance of the fiscal year, and (iii) any additional damages and expensessustained by Lessor by reason of the breach of any covenant, representationor warranty contained in this Lease other than for the payment of amounts due hereunder; Ib-21 enforce the security interest given hereunder, (b-3) without notice, liability or legal process, enter upon the premises where any of the Units may be and take possessionthereof, and (b-4) require Lessee to return the Units as provided in Section 10. Lessor shall have all rights given to a secured party by law. Provided Lessor receives possession of the Units following an Event of Default, Lessor may, at its option, undertake commercially reasonable effort to sell or re-lease the Units, and the proceeds of any such sale or re-lease shall be applied: first, to reimburse Lessor for all reasonable expenses of retaking, holding, preparing for sale or re-lease and selling or re-leasing the Units, including all taxes and reasonable attorney's fees and expenses; second, to the extent not previously paid by Lessee, to pay Lessor all amounts, except those specified below, which under the terms of this Lease are due or have accrued as of the date of Lessor's receipt of said proceeds; third, to pay all late payment charges pursuant to Section 2 hereof; and fourth, to pay Lessor the applicableTermination Value with respectto the Units. Any surplus shall be paid to the person entitled thereto. Lessee shall promptly pay any deficiencyto Lessor. Lessee acknowledgesthat sales for cash or on credit to a wholesaler, retailer or user of the Units are all commercially reasonable. Lessee agrees to pay all reasonableattorney'sfees and all costs and expenses incurred by Lessor in enforcing this Lease. The remedies herein provided shall be cumulative and in addition to all other remedies at law or in equity; provided, however, Lessor shall not be entitled to recover a greater amount in damages than Lessor could have gained through Lessee's full, timely and complete performance under this Lease, plus all fees, costs and expenses incurred by Lessor in enforcing this Lease and all late payment charges pursuant to Section 2. If Lessee fails to perform any of its obligations under this Lease, lessor may (but need not) at any time thereafter perform such obligation, and the expenses incurred in connection therewith shall be payable by Lessee upon demand. 10. RETURN OF UNIT: Upon any termination of the term of this Lease with respectto each Unit or if Lessor shall rightfully demand possession of any Unit, Lessee, at its expense, shall forthwith deliver the Unit to Lessor, appropriatelyprotected and in the condition required by Section 4, at the option of Lessor, to the premises of the nearest Caterpillar dealer selling equipment of the same type as the Unit, or on board such carrier as Lessor shall specify and shipping the same, freight collect, to the destination designated by Lessor. If the Unit is not in the condition required by Section 4, Lessee shall pay to Lessor, on demand, all costs and expenses incurred by Lessor to bring the Unit into said condition. 11. REPORT TO IRS: Lessee will report this Lease to the Internal Revenue Service by filing Form 8038-G, 8038-GC or 8038 whichever is applicable. Failure to do so will cause the Lease to lose its tax exempt status. Lessee agrees that if the appropriate form is not filed, the interest rate will be aajustea to an equwaient taxable interest rate. 12. TITLE, SECURITY INTEREST AND FURTHER ASSURANCES: Provided la1 Lessee has accepted each Unit on its delivery date; Ib) the Delivery Date of the Unit is on or prior to the Credit Utilization Date noted on the face hereof; and {c) no Event of Default exists as of the Delivery Date of the Unit, title to each Unit shall vest in Lessee on the Delivery Date of the Unit, provided, however, that in the event (i- this Lease is terminated pursuant to Section 1 hereof, or (ii) an Event of Default has occurred and is continuing, title to the Unit shallimmediatelyrevestinLessor,freeofanyright,titleandinterestofLessee,unlesslessorelectsotherwiseinwriting. LesseeherebygrantstoLessoracontinuingsecurityinterest in the Units, including all attachments, accessories and optional features (whether or not installed thereon) and all substitutions, replacements, additions and accessions thereto, and all proceeds of all of the foregoing, to secure the payment of all sums due. Lessee will, at its expense, do any further act and execute, acknowledge, deliver, file, register and record any further documents which Lessor may reasonable request in order to protect Lessor's security interest in the Units and Lessor's rights and benefits under this Lease. 13. ASSIGNMENT; COUNTERPARTS: Without the prior written consent of Lessor, no assignment of this Lease or any right or obligation hereunder may be made by Lessee or any asst nee of Lessee. Lessor ma no,t ~~,,si is ri t, title and interest in and to this Lease and the Units and/or grant or assign a security interest in this Lease and the Units, in whole or i apart. Although multiple corlrrll~rt~ , ~~Y be signed, only the counterpart accepted, acknowledgedand certified by Caterpillar Financial Services Corporation on the signature page thereof as the qr I~prill~~y G~ginal chattel paper. pi~/~ Rf~,.l 14. EFFECT OF WAIVER: No delay or omission to exercise any right or remedy accruing to Lessor hereunder shall impair any such right or remedy nor shall it be construed to be a waiver of any breach or default of Lessee. Any waiver or consent by Lessor under this Lease must be in writing specifically set forth. This Lease completely states the rights of Lessor and Lessee with respectto the Units and supersedesall prior agreements with respectihereto. Time is of the essenceof this Lease. No variation or modificationof this Lease shall be valid unless in writing and signed by the authorized representativesof Lessor and Lessee. All notices hereundershall be in writing, addressedto each party at the address set forth on the front of this Lease or at such other address as may be furnished in writing. If any provision of this Lease shall be invalid under any applicable law, such provision shall be deemed omitted but the remaining provisions shall ba given effect. All obligation of Lessee under this Lease shall survive the expiration or termination of this Lease to the extent required for their full observance and performance. 15. GENERAL: This Lease shall be governed by and construed under the laws of the State where the Units are located. To: Caterpillar Financial Services Corporation OPINION OF COUNSEL Re: Governmental Lease-.Purchase Agreement Dated as of ~ ~,` (the "Lease") Between Caterpillar Financial Services Corporation ("Lessor") and KERB COUNTY ("Lessee"). Sir/Madam: I am an attorney for Lessee, and in that capacity I am familiar with the above-referenced transaction, the Lease, and all other documents pertaining to the Lease. Based on my examination of these and such other documents, records and papers and matters of fact and law as I deemed to be relevant and necessary as the basis for my opinion set forth below, upon which opinion Lessor and any subsequent assignee of Lessor's interest may rely, it is my opinion that: 1. Lessee is a fully constituted political subdivision or agency duly organized and existing under the Constitution and laws of the State of TEXAS and is authorized by such Constitution and laws to enter into the transaction contemplated by the Lease and to carry out its obligations thereunder. 2. The Lease and all other documents contemplated by the Lease have been duly authorized, executed and delivered by Lessee and constitute valid, legal and binding obligations and agreements of Lessee, enforceable against Lessee in accordance with their terms. 3. The person or persons who have executed and delivered the Lease, and all other documents contemplated by the Lease were authorized to do so on behalf of Lessee. 4. No further approval, license, consent, authorization or withholding of objections is required from any federal, state or local governmental authority with respect to the entering into or performance by Lessee of the Lease or the Schedules(s) and the transactions contemplated thereby, and Lessee has sufficient appropriations or other funds available to pay all amounts due under the Lease for the current fiscal yeaz. 5. The interest payable to Lessor by Lessee under the Lease is exempt from federal income taxation pursuant to Section 103 of the Internal Revenue Code of 1986, as amended. 6. The entering into and performance of the Lease and all other documents contemplated by the Lease will not conflict with or constitute a breach or violation of any judgment, consent decree, order, law, regulation, bond, indenture or contract, applicable to Lessee or result in any breach of, or constitute a default under, or result in the creation of any lien, chazge, security interest or other encumbrance upon any assets of Lessee or the units leased under the Lease pursuant to, any indenture, mortgage, deed of trust, bank loan, credit agreement or other instrument to which Lessee is a party or by which it or its assets may be bound. 7. There is no litigation, action, suit or proceeding pending or, to the best of my knowledge, threatened against or affecting Lessee in any court or before any governmental commission, board, agency, azbitrator or authority which, if adversely determined, will have an adverse effect on the ability of Lessee to perform its obligations under the Lease. In addition, I am not awaze of any facts or circumstances which would give rise to any litigation, action, suit or proceeding relating to or potentially adversely affecting the ability of the Lessee to perform its obligations under the Lease. 8. The units leased under the Lease are personal property and, when subject to use by Lessee, will not be or become fixtures under the laws of the State of TEXAS. 9. The authorization, approval and execution of the Lease, the Schedule(s) and all other documents contemplated by the Lease and all other proceedings of the Lessee related to the transactions therein and contemplated thereby have been performed in accordance with all open meeting laws, public bidding laws, and all other applicable laws of the State of TEXAS. 10. The Lessor will have a perfected security interest in the Units upon filing with the Secretary of State for the State of TEXAS and/or the of at the time of acceptance of the Units of an executed UCC-1 or other financing statement. Yours sincerely, Sign Name (PRINT): ' µpv~-rA-~ W . ,, //~o ~ ~ rtrnn~ Title: ~}-T'7c7~2A1~`( (-t~R 1c~~R l.ou^Jf~ Date: MA-/t t1.1- 2~~ / 4 ~/ ~oz~ Telephone: 21 ~ - ~~ ~p - ~ S ~ ~ Form No. 0008-5/93 A64151 03/11/97 04:45PMCT Attachment to Governmental Lease-Purchase Agreement Dated as of ' ,~ ~ ~', between and KERB COUNTY ("Lessee") Caterpillar Financial Services Corporation ("Lessor") RENTAL PAYMENT SCHEDULE Payment Numbers Payment Amounts Due O1 - 60 61 - 96 $ 1,035.00 1, 225.08 KERB COUNTY (Lessee) Signature ~-- Name (PRIN r~~ V Title ~ `. Date Caterpillar financial Services Corporation (Lessor) c Signature J Name (PRINT) JEFFREY S. DALY CREDIT ANAL ;r Title Date ~~' $ '~~"'a z Form No. 0028-5/93 A64151 03/11/97 04:45PMCT CONSTRUCTION tQUIPMENT APPLICATION SURVEY RIDER To Agreement dated as of .~ -~,:_:,3 Between Caterpillar Financial Services Corporation and KERB COUNTY Model: ~ ',/.~ Attachments: NOTE: It machine is to be used in a landfill, demolition, transfer station, recycling application, scrap yard, steel mill, salt, chemical, corrosive, rendering, or hazardous waste environment, circle the appropriate aforementioned application; describe the exact application and working environment of the machine: then sign below. It is not necessary to complete the remaining portions of this application survey. You will also need to consult your Caterpillar Financial Services Corporation regional office to obtain the necessary quote data. COMPLETE THE FOLLOWING STEPS: 1. Choose the appropriate MARKET CATEGORY and circle the BASE number (one category per survey form). 2. Complete only this MARKET CATEGORY LINE BY CIRCLING ONE number under SECTION A (TOTAL HOURS PER YEAR) and ONE number under SECTION B (U/C, SHEET METAL OR TIRE/BELT CLAUSE). 3. Add or subtract as necessary the THREE circled numbers starting with BASE and enter in the TOTAL POINTS column. (SECTION A) TOTAL HOURS PER YEAR MARKET CATEGORY' BASE 0-1200 HEAVY CONSTRUCTION 4 2 BUILDING CONSTRUCTIO N 4 2 MINING/AGGREGATE 4 2 AGRICULTURE 4 2 FOREST PRODUCTS 3 2 PAVING PRODUCTS 3 2 INDUSTRIAL 5 1 GOVERNMENTAL ~ 1 1201-2200 2201-4000 4001-5000 1 -1 -2 1 -1 -2 1 -1 -2 1 -1 -2 1 -1 -2 1 -1 -2 -1 -2 -3 ~~ -2 -3 (SECTION B) U/C,SHEET METAL,OR TOTAL TIRE/BELT CLAUSE POINTS 5001 + YES NO -3 +2 -1 -3 + 2 -1 -3 + 2 -1 -3 +2 -1 -3 +2 -1 -3 + 1 -1 -4 + 1 -1 -4 + 1 v1 L~ This application survey is considered to be an inte ral part of the binding contract between the lessor and lessee. The information obtained from this survey will be of primary importance in the contract payment schedule. Any chap a in the location, severity of application, hourly usage and/or attachments or configuration must be approved in writing by Caterpillar Financial Services Corporation. IMPORTANT NOTE: In addition to the lessors other rights hereunder and not in lieu thereof, lessee shall pay lessor additional rent for each hour in excess of the maximum hours established for the lease. The Associated Equipment Distributors Green Book will be used as a base for determining an excess hour rental rate. Take 40% of the Published Associated Equipment Distributors monthly rental rate and divide by 176 to establish the hourly rate. Take this hourly rate times the total additional hours over the maximum used in the lease. The maximum number of hours established for this unit are C7 .The calculated sum will be due upon receipt of invoice. NOTE: SIGNATURES ARE REQUIRED ON THE REVERSE CONSTRUCTION EQUIPMENT 'MARKET DEFINITIONS HEAVY CONSTRUCTION - All highway/road construction, dams, railroads, airports and large earthmoving projects, including landfill site preparation. BUILDING CONSTRUCTION - All site development, sewer/water and utilities construction relating to building projects. MINING/AGGREGATE - All metal and non-metal including quarries and sand/gravel operations. AGRICULTURAL - All machines other than Challenger Tractors that are used in the preparation and harvesting of farm products. FOREST PRODUCTS - All timber harvesting, handling, logging road construction, sawmills and logging yards. PAVING PRODUCTS - All Caterpillar paving products, including compactors used for soil compacting excluding the 800 series. INDUSTRIAL - All machines used inside an industrial plant or complex for the purpose of handling raw materials, finished products or any other task required. (Machines are owned or leased by the plant itself.) GOVERNMENTAL - All machines used by governmental entities for routine road maintenance, snow removal and other light applications. NOTE: APPLICATION SURVEY MUST BE SIGNED BY LESSEE AND AUTHORIZED DEALER REPRESENTATIVE. Lessee: KERB COUNTY Signature !I Gl~-. Name (Print) +~ ~J Title ~ r Date 2 Reviewed by: CFSC Region Office Dealer: B. D. HOLT CO P Signature Nama•~IPrint) W/X~S(NE J.~}'CELLARD Title FII'~an -a~l_~ktg. Mgr. Date Form No. ASCONST - 11/95 A64151 03/11/97 04:45PMCT DELIVERY SUPPLEMENT This pertains to the Lease, dated as of as Lessor and KERB COUNTY "? ,between Caterpillar financial Services Corporation as Lessee. This confirms that the Lessee physically received the following Unit(s) on the possession date below. As of the date of signature of this form, (i) the Unit(s) are in all respects satisfactory to Lessee for leasing under the Lease, and (ii) Lessor has performed all of its obligations under the Lease. Description of Unit(s) (1) 924 5NN00967 Caterpillar WHEEL LOADER Location KERRVILLE, TX County: KERR Possession Date: Form No. 0001-12/96 KERR C Y ~AA.R ~ 5 Signature Name (PRIN ~~G !~ 1 ~ ~V?d~ Title ~~ t y Date A64151 03 1/97 04:45PMCT