CRUGR id0. ~=707,' AWARD DID FOR LER5E OF P10TrR GRACER urn this the c5th day of tlovember, ~dd~, upon ruutinn m~uJe ay Commissioner Let<, seconded 6y Commissioner Dalda~ir~, the Court unanimously approved 6y a vote of 4-d-d, awardiny bid fur Lease of Mator Grader to Halt, and authorize County .Judge to sign the contract for same once it's peen approved by the County Rttarney, COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Franklin Johnston. P.E. MEETING DATE: November 25 2002 OFFICE: Road & Bridge TIME PREFERRED: SUBJECT: (PLEASE BE SPECIFIC) Consider awazding bid for Lease of Motor Grader with Scazifier; Authorize the County Attorney to review sample contract with bid• and authorize County Judge to sign Final Contract for same. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Franklin Johnston. P.E. 'ESTIMATED LENGTH OF PRESENTATION: 10 minutes IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, government Code, is a follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepazed for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rule Adopted by Commissioners' Court. SPECIFICATION # 0036-03 PAGE 7 10/15/02 Bid Form for Lease of Motor Grader with Scarifier BID DUE-DATE: November 8, 2002 @ 5:00 p.m. BID OPENIING DATE: November 12, 2002 @ 10:00 a.m. Do not include Federal Tax or State Sales Tax. The necessary exemption certificates will be issued upon request. ITEM DESCRIPTION 1. ONE (I) NEW CURRENT MODEL MOTOR GRADER Manufactur r and Model No: ~ i Warranty: " Time Needed for elivery: c~ 2. Five (5) yeaz Lease (60 months @ $~~~("~/mo) $ ((L 3. GUARANTEED REPAIR EXPENSE (from delivery to 5 yeazs or 7,500 hours eti whichever comes first)--- SHALL NOT EXCEED $ TOTAL COST BID FOR ONE i ~ ~ ~) MOTOR GRADER WITH SCARIFIER $ (/ BIDDER MUST SUBMIT A COPY OF THE LEASE AGREEMENT WITH THIS BID FORM I certify that the above Motor Grader with Scazifier to be delivered under this bid will meet or exceed all of the minimum specifications and conditions set forth by the County of Kerr. DATED THIS DAY OF Bidding 2002. Address. Telephone: ,;5~%~~[~ / (Seal if Corporation) By: cci~/ ~ t~ f Title: - /~,~' ~ i ~~c Caterpillar Financial Services Corporation Finance Proposal CUSTOMER Name: KERB, TX, COUNTY OF Address ...... . . ... 700 MAIN ST RM 103 Good iF City .......... ... .. ...... ... KERRVR,LE Acluwwledged by . .... ..... Jan-06-03 State ..... .. . . ... ... ...... TX Fwded by .. ... lan-06A3 Zip code ... ........ .... ... .. 78028 County ..... .... ..... .... .. KERR DEALER Deal«: QuoleH .. ...... ... .. 430-714 HOLT TEXAS LTD. Fax numbs .............. .... ..... ... . Sales person .... .. ... ..... ........ Kcn Powdl Quote daft ................. .. t 110 712 0 0 2 Phone number .. . ... .... .. .. .... Quote time .... ..... .. .. 14:59:24 FINANCE PROPOSAL This is Caterpillar Financial Services Corpaalioris confumalion of the following fuwtce proposal This is a proposal only and is subject to credit approval, execution of documentation, and execution and approval of the applicatiar s«vey. Firancing type ..... .... ... Cat value option Purchase option ........ .... Stated option Number ofpaymenis ........... ..... .. 60 Monody Equipment .. .. .. .. Macltine PaymeNS ......... .. .. .... ..... "Advance Quoted by ...... .. ..... .............. ADR Ann. Amount Purdtave Model Cade Hours Qty Financed Payment Option New 12H 915.00 1200 1 155 X50.00 1,277.44 116,000.00 Payment Model hrsumnce wMsurance "^ New 12H 176.94 1,454.38 The estimate f« insurance is provided through Americm Zurich Innuance Company and is not an offer to contract for inurance. -- CONDITIONS SalesNse/Property taxes: Lessee's responsibility (May not be included m the above payment amount). Insurance: ]nwrance is the responsibility of[he Borrows «Lessee. Physical damage coverage is required on aR equipment whether finaraxd « leased On leased equrpmenf, general liabibty coverage, muumum $1,000,000 per ocaurence is required Please note: I) This hmutce proposal is acceptable ally N its entirety and is subject to final «edit approval by Caterpillar Financial Services Corpantiom 2) Equipment cannot be delivered until documents are executed by Caterpillar Financial Services Corporation 3) Fyuipmad mustroide yr US atoll liures. 4) Under the CAT Master Taz Lease and CAT Long Term Rental Agreement, a lessee is euquued m indemnify the less« f« loss of laa benefits. We appreciate the opportunity to provide you a proposal for this transaction Proposed by: ArJmowledged by: Caterpillar Firuurcial Services Corpa-ation KERB, TX, COUNTY OF Date Cat Quote Software B.01 430-714 Page 1 Caterpillar Financial Services Corporation ''~%VA Continental Casualty Company CNA Plaza A Stock Company Chicago, Illinois 60685 Herein called the Company BID BOND KNOW ALL MEN BY THESE PRESENTS: That we Holt Texas Ltd. dba Holt CAT Principal, and CONTINENTAL CASUALTY COMPANY Surety, are held and firmly bound unto Kerr County Road and Bridge, 4010 San Antonio Highway, Kerrville, TX 78028 ,Obligee, in the sum of Ten Percent of Greatest Amount Bid-------------------------- Dollars (E 107, of GAB-------) for the payment of which we bind ourselves, our legal representatives, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, Principal has submitted or is about to submit a proposal to Obligee on a contract for 12H Motor Grader ~ - NOW, THEREFORE, if the said coniroct be awarded to Principal and Principal shall, within such time os may be specified, enter into the coniroct in writing and give such bond or bonds as may be specified in the bidding or contract documents with surety acceptable to Obligee; or iF Principal shall fail to do so, pay to Obligee the damages which Obligee may suffer by reason of such failure not exceeding the penalty of this bond, then this obligation shall be void; otherwise to remain in full face and effect. Signed, sealed and dated 11/07/02 Ho exa t dba Holt CAT BY: ~'~L ~^ f ^ (Seal) V Principal Continental Casualty Company ~/~^/1; by~~(~. w .o. N11021 >~ Margaret Strowd Attorney-in-Fact 1-23054 B POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT Know Alt Men By These Presents, That Continental Casualty Company, Natrona) Fire Insurance Company of Hartford, and American Casualty Company of Reading, Pennsylvania (herein called "the CNA Companies"), are duy organized and existing corporations having their principal offices in the City of Chicago, and State of Illinois, and that they do by virtue of the signatures and seals herein affixed hereby ^make, constitute and appoint __ ,__ _....,..r"..., u..u.,.,, niee:- r_a~w r.~~l.ete nrd.., t[amn fl WaUeck [lnrxia Warren. Ruhv P_ Cendeiac. their true and lawful Attomey(s}in-Fad with full power and authority hereby conferred to sign, sl~l and execute for and on their behalf bonds, undertakings and other obligatory instruments of similar nature - In Unlimited Amounts - and to bind them thereby as fully and to the same extent as if such instruments were signed by a duty authorized officer of their corporations and all the acts of said Attomey, pursuant to the authority hereby given is hereby ratified and confirmed. This Power of Attomey is made and executed pursuant to and by authority of the By-Law and Resolutions, printed on me reverse hereof, duly adopted, as indicated, by the Boards of Directors of the corporations. In Witness Whereof, the CNA Companies have caused these presents to be signed by their Vice President and their corporate seals to be hereto affixed on this 31st day of January. 2001. G/SWV, gtsltR,1.,_ a ~' yRf' ~ti' ,~.~~ GonGnentat Casualty Company Un-aurE ry ~+ x'~' r~aratp National Fire Insu2nce Company of Hartford Z ~ 8 rITE aq Mr 74ro ~ Amedcan Casualty Company of Reading, Pennsylvania of SERI- ~ ~ ~ ~ a0L ~ ///r)^~ 5'~``~~ ,~, .."^. Michael Gengler Group Vice President _ a of Illinois, County of Cook, ss: On this 31st day of January, 2007, before me personalty came Michael Gengler to me known, vrho, being by Ine duly sworn, did depose and say: that he resides in the City of Chicago, State of Illinrois; that he is a Group Vice President of Cominental Casualty Company, National Fire Insurance Company of Hartford, and American Casualty Company of Reading, Pennsylvania oescribed in antl which exewted me above instrument; that he knows the seals of said corporations; that the seals affixed to the said instrument are such corporate seals; that they were so effaced pursuant to authority given by the Boards of Directors of said corporations and that rte signed his name thereto pursuant to like authority, and acknowledges same to tle the ad and deed of said corporations. S..NN.~.~N/.~,-N1.lNK~N~-~1H.....~ DIANE FAfJIIWER , ~~~~ i rrC~+...+wwe~iblru~sat i.... N.... N.........».. d My Commission Expires September 17, 2001 Diane Faulkner Notary Public CERTIFICATE 1, Mary A Ribikawskis, Assistant Secretary of Continental Casualty Company, National Fire Insurance Company of Hartford, and American Casualty Company of Reading, Pennsylvania do hereby certify that the Power of Attomey herein strove set forth is still in force, and further certify that the By-Law and Resolution of the Board d Directors of the corporatists printed on lire reverse hereof is still in force. In testimony whereof 1 have hereunto subscribed my name and affixed the seal of the said corporations this 7th day pf November 2002 ~~ ~ ~ or>M°eu~ r SF1tl. ~ ~~. 4' t119t .,.. (I.,,~. 1/23/01) d~""" ~ Continental Casualty Company ~qn~~ National Fire tnsurence Canpany of Hartford Nnedc~an^Casua/lt/y/Company of Reading, Pennsylvania MT 11, ~~-/ry/~r liG~ Mary A Riltikawskis Assistant Secretary C ate rplllar Financial Services Corporation CASUALTY VALUE SCHEDULE (%) (e Cfective with teases after 7uly 25, 1999) Exhibit 2lo the Cat value option Agreement Dated Between Caterpillar Finatx:ial Services Corporation and KERB, TX, COUNTY OF Description of Unit. 1 New Caleryi0ar 12H The Casualty Value of each unit shall be an amount equal to the total aggregate rental paymerds due under the lease limes the Casualty Value Factor set forth opposite the number o(the next rental payment due at the time ofthe casualty occurtence. If the casualty occurrence takes place alter the last rental payment dale, the Casualty Value sha0 be an amount equal to the total aggregate rental paymeNs due under the lease times the Casualty Value Factor sG forth opposite the last rental paymeat due order t~ lease. In addition, the total amount due Caterpillar Firencial Services Corporation upon a casualty oaurrence wdl be the casualty value plus any renal payments then due, taxes, late charges and any other amoun then due and owing. Casualty Payment Rental Value Number Payment Factor 1 1,277 44 2.073397 2 1277.44 2.066166 3 1,27744 2.058629 4 1277.44 2.050942 5 1277.44 2.043205 6 1,277.44 2.035416 7 1,277.44 2.027535 B 1,27744 2.019582 9 1,277.44 2.011536 10 1,277.44 2.003418 11 1,2'77.44 1.995247 12 1,277.44 1.986983 13 1277.44 1.978646 14 1,277.44 L970256 15 1,277.44 1.961772 16 1277 44 1.953215 17 1,277.44 1.9446U4 IS 1277.44 1.935939 I9 1277.44 1.927180 20 1,277.44 1.918346 21 1,277.44 1.909417 22 1277.44 1.900413 23 1277 44 1.891354 24 1277.44 1.662200 25 1,277.44 1.872970 26 1,277.44 1.863685 27 1277.44 1.854303 28 1,277.44 1.844645 29 1,277 44 1.835331 30 1,277.44 1.825762 31 1277.44 1.816094 32 1,277.44 1.806350 33 1,277.44 1.796508 34 1277.44 1.766589 35 1,277.44 1.776613 36 1,277.44 1.766538 37 1,277.44 1.756385 38 1,277.44 1.746174 39 1277.44 1.735864 40 1277.44 1.725476 at 12724a t 7tsoz9 a2 1,27744 L704523 43 1277 44 1.693917 44 1277 44 1.683232 45 1277.44 1.672446 46 1277.44 1.661581 47 1,277.44 1.650656 Cal Quote Software 8.01 430-714 Page 1 Caterpillar Financial Services Corporation Caterpillar Financial Servic ea Corporation CASUALTY VALUE SC[iEDULE (%) (effective with leases after duly 25, 1999) Exhibit 2 to Ore Ca[ value option Agreement Dated Between Caterpillar Fimm~cial Services Corporation and KERR, TX, COUNTY OF Description ofUnrit: 1 New Caterpillar 12H The Casualty Value of each unit shall be an amounLL equal to the total aggregate rental paymeNS due order the lease times Ilse Casudty Value Factor set forth opposite the numbs of dte nett rental payment due at the time of dte casualty occurrence. Ifihe casualty occurtertce takes place a1Ter the last rental payment date, the Casudty Value sha0 be an amount equal to the total aggregate rental payments due under the lease times the Casualty Value Factor set forth opposite the last rural payment due under the Icavc. Tn addition, the total amount due Caterpillar Firancid Services Corpaxtion upon a casualty occurrence will be the cawtalty value plus any rental payments then due, razes, late charges and any other amount that due and owing. Casualty Payment Rental Value Number Payment Factor 48 1,277.44 1.639629 49 1,277 44 1.628522 50 127744 1.617355 51 1,277.44 1.606085 52 1,277.44 1.594735 53 1,277.44 1.583323 54 1,277.44 1.571851 55 1$77.44 1.560703 56 1,277.44 1.549632 57 1,277 44 1.536668 58 1,277.44 1.526220 59 1277.44 1.517494 60 1277.44 1.513441 60 0.00 1.513441 A«epted by . date Cat Quote Software 8.01 ~ 430-714 Page 2 Caterpillar Financial Services Corporation NON-APPROPRIATIONS ADDENDUM to FINANCIAL LEASE AGREEMENT between CATERPILLAR FINANCIAL SERVICES CORPORATION and SAMPLE CUSTOMER DATED AS OF Lessor and Lessee hereby agree to add the following provision [o the Lease, and further acknowledge that all terms contained herein are to be defined according to [he provisions of the Lease: Lessee represents and warrants to Lessor that Lessee has sufficient appropriations oc 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 rental payments during the term of the Lease. Lessee hereby covenants that it will do all things reasonably within its power to obtain funds from which the rental payments may be made, including making provision for such payments to the extent necessary in each budget submitted for the purpose of obtaining funding and using its bona fide best efforts [o have such portion of the budget approved. It is Lessee's intent to make rental payments for the full temt of this Lease if funds are available therefor and in that regard Lessee represents that the use of the Units is essential to Lessee's proper, efficient and economic operation. In the event no funds or insufficient funds are appropriated and budgeted or are otherwise not available in any fiscal year for rental payments due under this Lease, then Lessee will immediately notify Lessor of such occurrence and this Lease shall temrinate on the last day of the fiscal year for which appropriations were received without penalty or expense to Lessee for any kind whatsoever, except as to the portions of rental payments herein agreed upon for which funds shall have been appropriated and budgeted or are otherwise available. Subsequent to a termination of this lease, Lessee shall have no obligation to make rental payments with respect [o the remainder of the Lease. In the event of such temunation, Lessee agrees to return the Units to Lessor pursuant to Section 12 of this Lease, and Lessor shall have all legal and equitable rights and remedies to take possession of the Units. Notwithstanding the foregoing, Lessee agrees that it will not (a) cancel this Lease under [he terms of this Addendum if any funds are appropriated to it, or by it, for the acquisition, retention or operation of the Units or other equipment perfomaing functions similar to the Units for the fiscal year in which such termination occurs or the next succeeding fiscal year thereafter, and (b) give priority m the application of funds to any other functionally similar equipment during the term of this Lease. The Addendum shall not be construed so as to permit Lessee to terminate this Lease in order to acquire any other equipment or to allocate funds directly or indirectly to perform essentially the same application for which the Units are intended. LESSEE: LESSOR: SAMPLE CUSTOMER CATERPILLAR FINANCIAI. SERVICES CORPORATION BY: BY: TITLE: TITLE DA DATE: CATERPILLAR FINANCIAL SERVICES CORPORATION ("CFSC") Page 1 of 2 CONSTRUCTION EQUIPMENT APPLICATION SURVEY Customer Name: SAMPLE CUSTOMER Location: , Make: _____ Model: Quantity: 1 Serial Number: Monthly Usage: Current Hours: Dealer SAMPLE DEALER Dealer Location: RALEIGH, NC ***** IMPORTANT INFORMATION ***** RESIDUAL EXCEPTION REQUESTS must be submitted to [he CFSC for the following applications: landfill, transfer and recycling stations; demolition, scrap yards and steel mills; salt chemical, and corrosive environments such as feed lots, dairy farms, rendering p/ants, mushroom farms, fertilizer and lime handling, salt wafer areas and all hazardous waste handling; dusty or poor underfoot conditions; all underground mining applications. Any applications requiring unusual attachments, equipment modifications or have non-traditional use of the equipment. Any transaction with five or more of one model. Please COMPLETE THE ENTIRE SURVEY for all transactions including any of the above applications. tNLJOR ATTACER+IENTS (Check all that apply): ^ 4 Wheel Drive ^ Slo a Boartl ^ Pallet Forks ^ Landsra e Rake ^ Concrete Crusher ^ Au er ^ Tiller ^ Rotator ^ Metal Shear ^ Forks ^ Cab Riser ^ Access Platform ^ Snow Plow ^ Ride Control ^ Lon Reach SUCk ^ Delimber ^ Block Forks ^ To Clam ^ Saw Head ^ Mower ^ Generator ^ Cold Planer ^ _ _ Air Conditioner _ ^ Solid Tires ^ Ri er ^ Lumber Forks ^ E-Stick ^ Broom ^ Trencher ^ Shear Head ^ OHT Bod Liner ^ Gra le ^ Com actor ^ All Wheel Steer ^ Special Rims ', ^ Rotasaw ^ Ma net ^ Feller Buncher ^ Cab ^ Winch V [ner: BLADES AND ROCKETS (Check all that apply): I, ^ "PAT" Blade ^ Side Dum Bucket ^ Landoll Bucket ^ Chi Blade ^ A le Blade ~I ^ Bottom Dum Bkt ^ "SU' Blade ^ GP Bucket ^ Coal Blade ~', Q E'ector Bucket ^ Car Dozer Blade ^ SI Bucket ^ Multi-Pu ose Bkt ^ H' h Volume Bkt I ~'. L_ Landoll Blade ^ Front Dum Bucket ^ "U" Blade ^ Strai ht Blade ^ Rock Bucket vmer: MPI2KET CATAGORIES (Check All That Apply) ^ Hea Construction - Airports, Brid es, Dams, H' hwa slRoad ^ Guar -Granite, Limestone, Sand & Gravel ^ 8uildin Construction -Commercial, Residential, Utildies ^ forest Products - Loatlin ,Road Construction, Skiddin ,Timber Harvestin ^ Landsca a Construction -Commercial, Residential ^ Forest Products -Mill and Yard Operations ^ Mining-Metals -Copper, Gold, Iron, Lead, Silver, Underground, Uranium, Zinc ^ Industrial-DairylMushroom Farm, Demolition, Feed Lol, FertilizerlLime Handling, Landfills, Renderin Plants, Scra Handlin ,Steel Mill, Transler Stations ^ Minin - NomMetals • Cla ,Coal, Oil Sands, Oil Shale, Peat, Unde round ^ Governmental -Road Maintenance, Snow Removal ^ Petroleum dGas - Ex loration and Develo ment Pi lines ^ Rental Services • Rental FleeLS II This application survey is wnsidered to be an integral part of the lease between the Lessor and Lessee. The information obtained from this survey will be of primary importance in the lease payment schedule Any change in the location, severity of application, annual hourly usage antllor attachments or conoguration must be approved in writing by Caterpillar Financial Services Corporation. NOTE: APPLICATION SURVEY MUST BE SIGNED BY LESSEE AND AUTHORIZED DEALER REPRESENTATIVE SEE REVERSE SIDE FOR ADDITIONAL TE12MS ANll CONDITIONS WHICH ARE PART OF THIS CONTRACT For the Lesser SAMPLE CUSTOMER Print Name: Company Dealer Management Reviewer Date Signature: Print Nam Title: Company: CFSC Reviewed DELIVERY SLfPPLEMENT !~ J This pertains to the Lease, dated as of ,between Caterpillar Financial Services Corporation as Lessor and SAMPLE CUSTOMER as Lessee. This confirms that the Lessee physically received the following Unit on the possession date below. As of the date of signature of this form, (i) the Unit is in all respects satisfactory to Lessee for leasing under [he Lease, and (ii) Lessor has performed all of its obligations under the Lease. Description of Unit: (1) Location: Coun Equipment Located: Possession Ua[e: C Inside or Outside City Limits SAMPLE CUSTOMER Signature Name (PRINT) Title Date EQUIPMENT: to RE: INSURANCE COVERAGE FOR LEASED EQUIPMENT Per the Lease agreement between SAMPLE CUSTOMER , _ and Caterpillar Financial Services Corporation ("Caterpillar Financial"), i[ is required that we be provided with insurance coverage in accordance with [hat agreement as indicated below. Physical Damage Coverage must show that Caterpillar Financial has been named loss payee for the equipment's replacement value. The deductible must be shown. Liability Coverage of a minimum of $1,000,000 or combined coverage for bodily injury and property damage per occurrence. Caterpillar Financial must be named as additional insured. 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. INSl1RANCE ACENT: ADDKESS: CONTACT PHONE NUMBER: IF EQUIPMENT HAS BEEN DELIVERED, WHEN WAS IT PROCESSMG OF THIS TRANSACTION WILL BE HELD PENDING RECEIPT OF THIS INFORMATION. PI 3E FORWARD CERTIFICATE TO~ Caterpillar Financial Services Corporation, 2120 West End Avenue, Nashville, TN 3T_113-0001 CUSTOMER INFORMATION VERIFICATION In our efforts to continue providing timely customer service, we need your assistance confirming the following infommation. If any information is incorrect or missing, phase note [he necessary changes below and return this form with your signed documents. Thank you m advance for your cooperation. Current Information on file Customer Name: SAMPLE CUSTOMER Physical Address: Mailing Address: Equipment Location: Business Phone: Fed. ID # or SS #: E mail ,lddress: .`~unts Payable Contact Name and Phone: Tax Information Sales Tax Rate: Please make corrections here (Please note: Sales Tax Rate, includes all applicable State, County, and City sales tax) City Limits Asset outside the City Limits? Yes_ No Tax Exemption Status Please indicate it' you are tax exempt. If you are tax exempt -please enclose a current tax exemption certificate to be returned with your documents -Not needed by CFSC if dealer ISC Other Information: Caterpillar Financial Services Corporation DIRECT PAY AUTHORIZATION CiiSTOMER INFORMATION (Please print clearly) Name Company Name City State Zip Code Phone Number BANKING INFORMATION Please attach a voided check for the bank account to be automatically debited each month. **PLEASE ATTACH VOIDED CHECK HERE** ^ ADDITIONAL CONTRACTS If you have additional contracts with Caterpillar Financial that you wish to have the payment debited each month, please indicate by listing the contract numbers in the space provided below. Additional contracts to be debited each month: SIGNATURES By signing below, 1 request and authorize Caterpillar Financial Services Corporation [o begin debiting my account, with debits made to my account and withdrawn by Cat Financial, provided my account has sufficient collected funds to pay the debit when presented. I agree that Cat Financial's rights relating to each debit will be the same as if I had personally signed a check. I agree that I will be liable to make payment promptly, including any applicable late fees, if any debit is not paid, unless Cat Financial or its agents or affiliates is directly responsible for the nonpayment. X X Signaturc* Date Signa[ure* Dale *As it appears at your bank. For a join[ account, all depositors must sign if more than one signature is required nn checks issued against the account. FOR INTERNAL U5E ONLY Contract No. Start Date ISC or Lease CATERPILLAR FINANCIAL SERVICES CORPORATION LONG-TERM RENTAL AGREEMENT Dated az of LESSEE: SAMPLE CUSTOMER LESSOR: CATERPILLAR FINANCIAL. SERVICES CORPORATION ADDRESS. ADDRESS: 2120 West End Avenue Nazhville, TN 37203-0001 Lessor, in reliance on Lessee's selection of the equipment described blow ("Unit" or "Unit(s)"), agrees to acquire and lease the Units to Lessee, and Lessee agrees [o leaze the Units from Lessor, subject to the terms and conditions below and on the reverse side: Descrin[ion of Unlt(s) SerldB AnnudRent Purchase Price U) - --J.BB-~ Rent to be paid: in arrears (starts one year after Delivery Date)and every year thereafter. Lease Term: Months Utilisation Date: SEPTEMBER 30, 2002 Purchase Opt(ons: [~ Cat Value (Section l4) U Fair Market Value (Section 15) L] none is applicable m [his Lease (check one) Location of Unit(s): Depreciation Period: Lessor shall be entitled to depreciation deduction for each unit bazed on a recovery period of 5 years. ADDITIONAL PROVISIONS: EXHIBIT 2 RIDERS: TERMS AND CONDITIONS OF LEASE 1. LEASE TERM: The Lease term for each Unit shall start on its Delivery Date (the date (a) Lessor executes this Lease, (b) Lessor takes title to the Unit, or (c) Lessee or its agem takes conttol or physical possession of the Unit, whichever is latest), provided the Delivery Date is on or before the utiliution date stated above, and shall continue for the number of months stated above. If the Delivery Date is not on or before the utilisation date, Lessee shall, az the option of Lessor, assume Lessors obligations to purchase and pay for the Unit. Lessee shall execute and send Lessors Delivery Supplement to Lessor promptly after delivery ofe Unit. 2. RENT: Lessee shall pay [o Lessor, at or such other location Lessor designates in writing, rent for cash Unit as stated above rtarting (a) on its Ddivcry Dale if the rent is to be paid in advance, or (b) one month (or other period as stated above) after its Delivery Date if the rent is to be paid in arrears. An amount equal to the first rent payment for each Unit must accompany this document when it is submitted to Lessor. If Lessor executes this documrnt the amount shall be the first rent payment. If Lessor does not execute this document, the amount shall be returned to Lessee. It' Lessor does not receive a rent paymem on the date it is due, Lessee shell pay to lessor, on demand, a late payment charge equal to five percent (5°,) of the rent payment not paid when due or the highest charge allowed by law, whichever is less. 3. NO ABATEMENT: Lessee shall not be entitled to abatement or reduction oCrent or setoff against rent for any reason whatsoever. Except as otherwise provided, this Lease shall not terminate because of, nor shall the obligations oC Lessor or Lessee be affected by, any detect in, damage to, 6eshvcnon of, or loss of possession or use of a Unit; the attachment of any lien, security interest or other claim to a Unit; any interference with Lessee's uxe of a Unit Lessee's insolvency or [he commencement of any bankruptcy or similar proceeding by or against Lessee, or any other cause whatsoever. 4. DISCLAIMER OF WARRANTIES: Lessee acknowledges and agrees that Lessor is not the manufacturer of the Unit(s) and that Lessee has selected each Unit based on Lessee's own judgment without any reliance whatsoever on any statements or representations made by Lessor. AS BECWEEN LESSOR AND LESSEE, THE UNIT(S) ARE PROVIDED "AS IS" WITHOUT ANY WARRANTIES OF ANY KMD. LESSOR HEREBY EXPRESSLY DISCLAIMS a) ALL WARRAMfES OF MECHANTABILITY, b) ALL WARRANTIES OF F[TNESS FOR A PARTICULAR PURPOSE, AND c) ALL WARRANTTE$ AGAINST MFRINGEMENT OR THE LIKE. Lessor azsigns to Lessee its inerest m any of the manufacturer's warranties on the Unit(s). 5. POSSESSION, USE ANp MAINTENANCE: Lessee shall noI (a) use, operate, maintain or store a Unit improperly, carelessly, unsafely or in violation of any applicable late or regulation or for any puryose other than in the conduct of Lessee's business; (b) abandon a Unit; (c) sublease a Unit, permit the use of a Unit by anyone other than Lessee, change the use of a Unit from that specified in the Application Survey/Usage Rider attached hereto or change the location of a Unit from that specified above, without the prior written consent of Imssoq or (d) create or allow m exist any lien, claim, security interest ur rncumbrance on any of its rights hereunder or a Umt. A Unit is and shall remain personal property regardless of rts use or manner of attachmem to realty, lessor and its agent shall have the right (but not the obligation) to inspect a Unit and maintenance records relating to it and observe its use. Lessee, at is expense, shall maintain each Unit in good operating order, repair and condition and shall perfann maintenance at least as frequently as stated in any applicable opemror's guide, service manual, or lubrication and maintenance guide. Lessee shall not alter any Unit or affu any accessory ar equipment to it if doing so will impair its originally intended function or use or reduce its value. Lessee shall not make any "non-revenibl<" addition (as defined for federal income tax purposes) to a Unit without the prior wrtten consent of Lessor. Any alteration or addition to a Unit shall he the responsibility of and at the sole risk ofLessee. If an Event of Default has occurred and is continuing, all patts, accessories and equipment affixed to a Unit shall become property of Lessor. SEE REVERSE SIDE FOR ADDITIONAL TERMS AND CONDITIONS Lessee: SAMPLE CUSTOMER Lessor: CATERPD.LAR FINANCIAL SERVICES CORPORATION By Name Title By Name (PRINT) Date b. TAXES: Levee shall prorrlptly pay m rcimbtme Lessor tar all fins sod taxn o(my oattsrc, rogeNU wdh soy pmaMU, Boas or addidms to cox and inrcmt Mneon (dl of Me foregoing hncvRcr Me "Impoaitioni I, levied upon Leaaor by my mzmg auMgdry wiM mpett m m m camecdm whM1 • Uek Dom tlw Ihr,c it is parthaad by Loam until it b returned Iq Leaam. Excluded, however. arc axes measured by LeueYS net income but nor excluded art tM acome sou which by the tams of the slaMe mooing Ne to exprnsly relieve Lessee m Lesmr Ram the paymem of my Intpositims which Lcsaee would oMcrwise be gbligatd to pry m rebnbune. If Leaser u em msitled to m equal deduttim wiM rcspett ro my ImposiDm which Levee u required ro pry qr rcimbune hercundn end peynlcm m reimbunemem wnscimtn income to Leveq Nm Lessee shill sao pay ro Lnsm Ne amomt of my Impoaidou which Leaver u obligated to pry m rcspmt of (q Ne psymms m rcimbunemms by Lenee and (b) any peymrnt by Lessee made Dursuent to Mis smtmu. Loam shall prepare and Ble. m a mavntt utiafurory ro Lnsm, my reWru m serums which m.y be requved with rcspett IP a Unit. For purpoua of this section. "Lessor" shall include any aRliated gmmry, within He meeting of Section 1501 of He Internal Revenue Code of 1986, olwhicM1 Lessor it a member far my year a which a conaolid.rcd m combined income sax remm is filed fp. the vRliatcd group. t. TA.\' INDEMNITY: This Lau is entered into on the basis Mat Lessor shall be rntitled Ip (q depreciation deductions wish roped to a Unil, in accordance wiM Sermon Ifig(el of the Inmmal Revenue Cnde of lgBG, as anunded (the "Cade"), hoed upon the eppliuble depreciation inched and recovery period apeci0ed in Sections Ifig(b) and Ic) of the Code as idmtifed by Lessee, anA (bl for ata« income ux purposes. dedunions analogom m fd (all of Me foregoing h