texas 1alafos LEASE WITH OPTION TO PURCHASE AGREEMENT Lessee: Kerr County 700 Main Street Kemilfe, Texas 78028 Lessor: Security State Bank Er Trust '1130 Junction Highway Kerrville, Texas 78028 Dated as of December 1, 2005 This Lease WNh Option b Purchase Agreement datetl as a the date Ilatetl above is hetween Lessor aid Lasses liaetl tlirealy show:. Lessor desires to fronce the purchase a the EqupmeM dasalbed In Exhibit'A° to Lessee and Lessee tleslres to flnence the purclrese of the Equipment from Caesar subject b the tams and mMNiors of this Agreement vdxch ere set (odh bekxv. 1. DeNnltbns: Seaon 1.01. DeflnNions. The falowlrg terms wAll have the meaangs Irx6mted babes uMeas the tooted clearly regWres Mherwiee: "Addllbnel Schedule" refers 1o the proper execution a additional Sdeetlules to Exhibit A FxMbit B, ExMbN C and Exhibit E as vrell as shat exhims a documents that may be required bythe Lessor all of vAtlch relate b a lease of adddional Equipment. 'Agreement" meats this Lease w8h Opton ro Purchase Agreement and all Ezntbtts attached hereto. 'Budget Vear' rmarfs the Lessee's fiscal year. 'ComnercameM Dale' H the dale when Lessee's obligatlon to pay rent begire. 'EgutpnraM'rtrmrs aN tithe items MEpxpment liaed on FxN6it'A' and aN rePlemrnenfs, reatomfiorla, rtrodificMions end impoverrrenLS. 9..essce' meats tie enOty listed above ere Lessee and which Is leasing the Equiprtnnl from Lessor wrier the provisions a this A~eemeM. "Lessor' means the entlry originally listed above as Leases or arty o/ its assignees. 'Lease Tertn° treats the Original Tenn and all Renewal Tams. 'Original Term' meats the perWd from Oee Conurrencertrax tote until the end a Ne Budge Ymr of Lessee. °Renexal Term' meets Ne annual teen wh~h beglm at Ofe end Mthe Original Tenn end wladr is simultaroars wtih Lessees Budget Year. 'Rental Peynierxs" nsens the peyn7ads lessee is reglYred to treks wxlerthis Agreement as sal forth m Exhlbs'B'. "State' rnearsitre slate In which Levee Is located. Lessee YYarremtes (a) Lessee rs an 'issuer M tax exempt aaigWbrs" because Lessees the Slate a a polNiml subdivision M Ne Slate within the rreaurg a Section 703(a) a the ntemal Ravarxfe Cade of 1986. ~ anreMed, (the'Gade' or OP.mase lessee is a mrsNLdetl aulhooty a tlistrict autlndzal to issue odgatiars on mtreO of Ore Slate or poNticel subdivision a the SIMe wttMn the meaning of Treasury Regulation 1.103-1(b). (b) Lessee Is autlnrized order 11x; Conatitutlon antl laws a the State to enter InN this Agreemard, and has used such arNeority to propedy ezecule ant delNer this Agreement. lessee leas folkrved aft proper prtxxxlues of ds 9overNrg body in exeafirg itxs Agreernt. The ONcer a Lessee executing lids AgrearreM tree the authority b execute and delhar ills Agreement. Tftls Agreement axrstitrAes a legal, vaBd, bindng and eraorceaae otxigatlan a Ne lessee in acoordarce with flsterms. (cl Lessee tree complied with all statutory laws and regulaliwstleaf maybe appllaade to the exeattlon otihis Agreement. (d) lessee shell use the FAulpmeM oMy for essaetlal, badlllonal gwemment purposes. (e) Should the IRS diselhnv the Laz-e~mpt status M tie Interest Palion of the Rental Paymenffi as a result a the falum W the Lessee b uea tFre Equipment Aor govemrrrenlal puryases, tlear I.rssee stroll be retptired to Pay eddltiorral sums re the lessor or 8s assgnees so as to bring the after tax yield b the same level as the Lessor a its assignees weed again Othe transaction continued b ba taxexempt. (f) Shastl the lames cease to bean issuer a lax emmpt oNigeOOns w a ttre abligetion of Lessee aeMetl uMer Nls Agreement ceases b l>e a fax exempt obiigMion for any reason, ilron Lessee shall be regutred b paY addtionN ems fo the Lessor a its assignees so as to bring the aMr fax yield an Nis Agreamerd to the sarre IevN as the Lessor err 9s assignees would aOMn ifth~ tasacton mMlnued m befax-exempt. (g) Lasses has never rlarveppmpnMed funds order an Agreement shMlar to Nis Agreement. (h) Lessee will auMrdt to the Secretary a iM Treasury an Informallon repod'ng stalalrlent as required bythe Code. (I) Upon request b1' Lessor, Lesece will prowde LessorwNh current Omrdel afgemerlB, repents, budgets or dher relevant feral iriamation. U) Lessee strati retain tl7e EgWpmeM bee a arty Imardous sr0starroes as defined n the Comprelrast~m ErnironmeMal Rrsparse, CortpersWion eM Li~iNly Act, 42 U.S.C. 9801 M. esq. es emended ant supplenranted. (k) lessee presently intents to cadirxte N~ Agreement for the Ongirral Term and all Renevrel Tarts asset faflt on ExNbit `B" hereto. The official a Lessee reaporsihle tar budget preparation will iridrde M the budget request fa each Budget Yearthe RarFal Paymeras b become due in sum Budget Yea, ad will use all reeeorraNe end Ia~MUI mess available b sears the epprrpriatlm nt nrorrey fa srrM Budget Ymr sulTxaerrt b pay the Racal Payments cenNrg due therein. Lessee ressorrabty believes that rrorreys con and vAN IewfWly be appropriMed and made available for Nis purpose. Seaton 2.02. Escrav Aoreenrad. In the event bath Lessor ant Lessee mutmily agree to Wlliu an EscrowAOCOUM, then Inmedisbey ialowing the exeadon end dMivery M Nis Agreement, Caesar end lessee agree b ezeatle and deliver artl M muse Escrow Agent to execute ant dalNer the Escrow Agreenrad. This Agreement shell take eOed aMy upon execution sari daivary of the Escrow PBreemeM by Ere Pedies BrerWO, lessor stall dePmit or woes to t» daposiled vAth the Escrow agent for aerie to the EgWpmeM Aaprisition FuM Ne sum MSN!A wftlae shell beheld, irwesfetl eM dsbuNed in accoMance wiN lls Esaaw AgreemaN. 01. AcqulsMan of E9WpmeM. Retrial Payments and Ore Pumaase Optlrm Prke 3eolton 3.07. AaxYSiliwt errtl Acmpiarm. Lessee shell be sdety resporelWe for the aNairg nt Ote Equipmem ant fa the delivery and insmlletion M the Eµxpmaa. Ezeadon d Ole Acceptance CertlOCMe by en employee, aflMdel err agent W the Lessee Ire~nrO managedel, supervLSOry a pramrernent auOronty with teepee to the C-rpripman shall axeatiare acceplarce of the Egaipment on behalf of the Lessee. Seaton 3.02. Rental Pevnrrixs. Lessee shall pay Rental Pa/meMS axausively to Lessor or ifs assignees m IaMW, legally arelleble nwrrey M the ureted slates a Aaraim. The Rental PayrtrerOS shall be sent to the location specgbd by the Lessor or Ns assignees. The Rental Payments shell rArslilute a torrent expense M the Lessee and shall rest axslNre re lldetNedrrBSS M the I.esaee. Lessor shMl have Ore optlan to dtarge Intaea al the higtresl ImMN refs on anY Racal Payment received IaterOgn the due date ~ the number a days ttst Ofe Rental Payment(s) were tae. Lessor atoll also have the option, on montMy paymems onty, to charge a Isle fee of up m 70% M Na mmwy RerrtA Payment that fs past dm. The Bartel Payments will be payable without rrdke or dertsrd. sed'on 3.03. Racal Pavmants Ufrroridtiorel. 6rcepl as provided urxler Seaon 4.01, THE 08UGATIONS OF LESSEE TO MAKE RENTAL PAYMENTS AND TO PERFORM /{ND OBSERVE Tf¢ OTHER COVENANTS CONTAINED iN THIS AGREEMEfVT SHALL BE ABSOLUTE AND UNCONDITIONAL IN ALL EVENTS WITHOUT ABATEAAFRT, DIMINUTION, DEDUCTION, SET-OFF OR DEFENSE. Sedbn 3.04. Purchase GWlon Price. Upon thirty (30) days wMfen nMlce, Lessee shell have the option b pay, In etlmtun N the Rental Peyrtrent, the comespardirg Purritase Option Price which M tided on the same Ilro on Ex1aNt B. TNS option o Doty avallaNe to the Lessee on fire Rental Payment date ad rw partial prepaymervs are alkwred. 8 Lessee efaasea flee option and Pays tie PurrJrase Optlon Price b Lessathen Lessor wiN aaruter any and aN M IYs rights. Olb and Interest M the Equi{xrsnt ro lessee. Seaon 3.05. Lease Tem. The Leese Term a Ne Agreement shall be the Orglrnl Tem and all Renewal Terms until all the Rental PaYnxvas are paid as set font m ExNba B except as provided under Section 4.01 arM Seaon 9.01 beow. If, efier Ora end M Ora hudgefirg proms which orcws m the end M the Qigirrel Tem a any Renewal Term, Lessee 1ms rraA ronappropdatetl as Provded for in Nis Agreemad then the Lease Tenn shall be extended into the red Rerowel Tertn and Ore Lessee shall be otdigated b make aN tie ReMd Payrrien6 Om came due doing soar Rerlmval Term. Seclbn 3.06. Disdelma of Wamentos. LESSOR MAKES NO WARRANTY OR REPRESENTATON, EITHER F~(PRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY, FITNESS FOR PARTICULAR PURPOSE OR ANY OTHER WARFilWTV WITH RESPECT TO THE EAUIPMENi. LESSOR SHALL NOT BE LIABLE FOR ANY OICIDENiAL, INDIRECT, SPECIAL IXt CONSEQUENTIAL DAMAGE ARISMG OIJi OF THE MlSTALLATION, OPERATION, POSSESSION, STORAGE OR USE OF THE EQUIPMENT eY I. ESSEE. N. Non-Approprietlon Seaon 4.07. Non-AOOropriabn. O irera0da9 /raids are aveilade in Lessee's Nxlget fa Ore ned aw~el Yrar b matte Ore Rental Paynrenis fa tie rnx[ Renewal Tenn end Ne Lads b treks such Rental PaYrnenfs ere otmrwise unaveileNe, then Lessee shall have the option to rorrappropnate tie funds fo pay Ore Rental PaynreMS Tar Ne red Renewal Term. If Lessce chmaes Ihis opfim, then all mligetioro w the Lessee antler this Agreement regaMing Rental Payments mr all remaining Renewal Temm shall he terminated et the end d the then mrrent Origirei Tenn or Renewal Tenn wilhoW penaly or liability to the Lessee d any kind provided that 'rf Lessee has nd delivered possession d the EgWpment m lessor as proNdetl harem ant mrrveyetl to less« w rebesetl its interest in the Equipment by me end d the last Blydget Vear for whkh Rental Paymeras ware paid, me mrtnlretlon shell navertitdess be effecve bW Lessee shell he responsible mr an amount equal m me amount w the Ramat Payments tlrereaVer rxxNrtg due order FxNb0'B• whMh are aOnbW~le m the number w days e0er such Budget Veer dmrtg which Lessee fails to fake such atAOris. Lessee shell Immetliamiy ndtly the Caesar as smn as Ure decision m nxFappropdate k nrazle. If sum corn-appropndlon orxurs, then Lessee stall deliver Vre Equipnwnt m Less« as provided bebw in Sectlm 9.09. Lessee dell be IYable f« afi drrtrege m 1ho EgWpfnent rifer than rramal wear rod tear. O Lessee falls to deliver the EgWpment m Lessor, then Lessor may ewer the premises where me EgWpmant fs located and take possesNm dffw Equipment end charge Lessee t« coats loaned. V. Irtsuranm, Damage, OuuRiclency of Procaetla Section 5.01. Insurance. Lessee shall nelnmin both rasuelry inaurenm and liadlny insurarre at its awn expanse wdh reseed to the Equipment. Lessee staN be eddy resportside mr seteeting the inerrer(s) and for making dl premium payments and errankg that all pdides are coMimlmsly kept in etfeG tlunng the Period when Lessee rs required to make Rental Payments. Lessee shall proNde LessorwM1ih a Certificate d Ira«arlce which lists the Lessor arrd« assigns as a krse payce and an arldrtiorei insured on the policlBS wflh reaped m pre Equipment. (a) Lessee shall irmrme Vre EgWprtaN agdrml arty bas or damage by fire aro ail amer oaks mvered by the abndaro extended cwerege erd«aemenl then in use in the Stnte and arty other risks reesonebty regWred by Lessor in an enpuM d least equal m the tian applkabb Pixmesc Opton Price of Vre Equipment, Attemdively, Levee may ieuure 9re EgWpnrent urxmr a blanket insurence poky w polides. (b} The IIeNIity ireurartce shall Insure Lesmrfrom lability and property damage in anY form acct amount sdtsfaclnryto Lesaw. (c) Lessee may sett-ireure agelnd the rgstfNty asks and lability risks desmlx3rl above. If Lessee chooses Otis oplian, Lessee must famish Lessor with a certificate soda other docraneras whim edtlertms sum coverage. (tl) All ireuance eddies Is~red w afiedetl by itrls Setlbn shall be so wmmn «entlorsed sum tfai the Caesar end Its eseignees are named edfltlorel insureds and bee payees ant and all kraaes are payable m Lessee ant Caesar « its assignees as lhdr IMeresta may apPew. Eam pdicy leered or afleded by this Seaton shall c«adn a provaim 9ai the irmrsarrm mnrpeny shall rrd cancel « rtateridly rtrodfy the policy vMInW Brat giving tirirty (30) days adverts notice to lessor ar ks asaigriees. Lessee stall mmd, to lassormdig®tes evitlerrcirrg sum coverage ihrwgfgot the Lease Tenn. Session 502 Demme m « OeaVtfction d EaWwront. Lessee assumes Nre nsk d lass «tlengge to the Equlprront. If Ina EgWpmem « erry poNm thered Is ices, siden, damaged, « tlestroyetl by Ere « dh« casuatly, Lessee w911 immetllMey report all such losses to all pcesible insurers ant mks the proper procedures m attain ell fnsurerrce pr«aeds. N the aplim d Lessor, Lessee shell either (i) apply the Net Proceeds b replace, repair « resbre the Equipment « (2) apply Ore Net Proceeds to Ilre appliraNe Purchase OpMbn Prim. F« PraPnses d tits Secton and Section 5.03. the mrtn Net Proceeds shell mean Ifte amomt d Imurenoe Pr'oceeAs cdmcled ir«n all applicade Irrsurenm pdiGes all«AeduGirg dl expenses imxred in Va mlleGion ttrered. Seton 5 03. insltflirierwv of Net Proceeds. If there are ro Net Proceeds for wheeler reason w tt the Net Pr«acvls ere Insu111Gent m pay In mil /he msl of any replemment, repair, resloralbn, rta6ficetiwf « imprwerreM d the EµriprcraL ttten Lessee stall, a the option d Lessor, eltlrer (1) conpbte such replarermrtt, repair, restoreian, mmiRmibn « fmprowertrent and pay any mats thereof In exrxsss d the amount d ila Net Proceeds w l2) appy Ora Net Praceatls m ma Purr7rase Option Prke and pay the deflderrry, ff any, to the Lessor, Section 5.04. Lessee Nealiaence. Lessee assumes all oaks end IlabAgles, whether or not rxrveretl by Invurenm, for bas wdamage to the Equipment ant f« Injury m «tleath w any person or dnrwpe to any Property wtrether arm irtjury « seam be WM respecl m agents «employees w Lessee « d mint ponies, ant whether such Property damage 6e m l ess•ee's property m the property d otitefs (indutling, wRtxxd Iirrtltetlpt, Oetllities for bas w dernape related to the release w tireamrred release of fra2'arbats smmarrras ardor the Cofripretarwitae ErwirmnaMal Resporrse, Compensation acct LieNitly Ad, Vre Resersm Oorwarvatim and Remway Act w slMlef w sumesv« law « any side « brat equhaleM rlow existing « hereineffer enecmtl whim b arty roamer arise out d or are inctdeM m arty Pmsessim. uea, rrperebn, conrlOOn « daage d any Egdpment by I.e~ee) whim is Pmdmeety caused by the nagligma mndtcl d Lessee, its officere, employees and agents. Lessee hereby assumes resporaiNlity for and agrees m reimburse Lessor far en fiebiGlles, obkgati«ts, lasses, denagas, penaViee, rdaMns, actions, rods acct expemes (irrcWding reas«alYe atttxneys' mss} d wtaLSaever kind and rrelure, trnPoseU on, irruafetl by or asserted agekrst Lessor Val in arty'waY relate b or arise od d a claim, sWt or pr«eedrg, besod in whole or In pad upm the negligent mntlud d Lessee, its dlioers, empbyees and agenrs, b the rrattlmum edent pertMtletl by law. VI. Tula and SactrrMy fsrmreat sedbn 8.01. Title. Title m the Equipment shell weal in Lessee when Leaves acgWres and amepts the EgWpmaM. Tae to the Equipment will arrbrraticetiy transfer b the Lessor in tire evert I.esaee non-~prapriales antler Sedbn 4.gi «in the evert lessee tlefaUts order Sectlm 9.01. In ehher d such everOS, Lessee shAl execute ant deliver to i.essor etch domrrreras es Lessor may request m eviderrce ifre pie d legal tills m the Equipment m Lessor. Sectlon 6.02. SecunN Interest To setae the paymem d all Lessee's obll~tlorts uder this AgreertleM, Lessee hereby gmrrm m Lessor a seaaity inmrest order the UnO«m Contrrrerdel Code mrfetihakrg a first lien m the Fxpapment descrthed more ffrlly on Fxfridt'A° The seasay interest edeblishetl by this section indutles nd oMy all additions, attachments, rapdre ant replacements to the Equipment bd elm all proceeds iherefr«n. VII. Ablgnmem fiectbn 7.01. Aeslarunmrt by Lessor. All d Lessor's rgtris, iOle ardor Interest in ant m this Agreement may 6e assigned ant rea~igred in whab « in prat m wre w more assignees wsub-e~iprees pmudng a Ra~merad ownw rw Lease ParVrApanon cenmr.Nes} ny Lesa« at arty time wnhan the mraeM d Lessee. Na such esalgmmeM shell be effective as agakal lamas until the assgn« shati lave tiled with Lessee wriOan rofice d asdgnrreM identifying the assignee. Lessee stall pay all Rental Payments due hareraxter ntletlrg to sum EgWprrent m or a the drectbn d Less« w fire assignee n«netl in the notice d essignmeM. lames shell keep a complete acct acmMe retard d all sum msignmeras. Section 7 02 Assimment by Lessee. None d Lessee's rlgN, tole and interest antler IhD Agreement and In the EgWpmmt may 6e assigned by Lessee artless Lessor approves d such assignment b wrOlrg bemre such assigrmrmt ocaas acct oMy after Lessee Brat abmka an opiNm from refiorally rerxgnized monad sia9irg llat sum am7ptmeM will ralJeapaMlze the tax-erempt smtus dthe odigalian. Vgl. pMmmrorrce of FAWpmem Sedian 8.07. lessee shell keep the Egdpnerd in good repar ant working order. Lessor shall have m obligeion m inspect, test, service, meinten, repair or rtake improvemaMs «atlditlwrs m Oa CgWpmara fader arty druarrstances. lessee win be liable far el danage b me Equipment. other then cannel wear and tear, wumtl by Lessee, Os engbyees « tts ageras. Lmgee stall pay for and oddn all pemAts, Noensea acct Imtes necessary br the Inslallebn, operation, poasessim, storage or use d the Equlprrent. It me EgWPmeni Irrclutlm arty tllled vehicle(s), then Lessee W responsible mr obmining such 1Poe(sj from the Stale and also mr ensunrg ila4 Lessor N latetl as Fimt Lbnhdtler on all d the IMe(s). Lessee shall rot use the Equipment m haW, otrrvey w transport trelardous waste as defirretl in the Resource C«tmrveion and Recovery AcL 42 U.S.C. 6901 et. seq. Lessee shat rr01 dwirg ltte tam d rata Agreement crate, irtc« «amume arty boles, Here «ertaurrbfartces darty lord vMh reaped m the Equipment except those created by iNs Agreement. Lemee agrees Vat Lessor « le Assignee may ezecde any addlicne documents IMWirg flrerxdng stetemmrs, affxmvtts, rooms, and sMktr Iretrunrents, f« and m Oehef w Lessee whim Lessor deems necessary or appropdam m protect LemWS Interest in the Equpment acct in Ihis Agreement. The EgWpmeM m end shell a all Ones be and remain p«sorrd propeM. Lessee shall allow Lessorm expmne ant Irmpect ifC EqupmeM d all reaeonade times. BL Demdt Sadbn 9.07. Events d Demutt tlefiretl. The mllawkg events shall rxxrs111We an 'Event d Default' uMer tlra Agreement: (e) Fallne by Lemee to pay any ReMd Payment listed on FJInINt'B° for fittem (75) days after sum payment is due acoonling b the Payment Dale listed m F~dribO •B°. (b) Pallas m pay any dh« payment required m 6e pad ceder tins AgreertaM M ttra tirrre spetlfietl herein and a c«alnalicn M saki teure t« a penotl d Tdlcen (75} days after vrtillen rrotira by temoritre such payment mmt be made. ff Lessee c«ainues m mil m pay any payment aff« sum perloq ifterr Lesa« may, but will rot he oblgamd m, make sum PaYnlaras arxi charge Lessee mr all costs Imm~etl plus Interest a Ole hl9hed IawfW ate. - _ _ . (c) Failure by Lessm b observe acrd perform arty vvanrenry, covenant, tanNion, pr«rise «brly wrtlar 1Ns PgeerrcM Ax a penm d tlvrry l30} days afmr wnlten rwtice speclf79ng sum tenure n given to Lessee by lesser, utkm I.msor agrees in witting b ro exmrsim d lime. Less« will rot unreasorebty wtthMltl tts mrserll m an exlerelm ofllme ff mrredhve action a IrrdOWed by Lessee. Subsection (c) toes nd apply to Rmml PsYnrants acct dher payments dlacamed above. (d) Arty steemenL masedal omisaim, repremnmfion or wananty made by Lesme in « pursuant m rats Agreement vAtkh proves m m trim, Inrmrred « nridea6ng m the dale when merle regardless d Lessee's iMral end whim naterialty adversely affects the nghtlt «semmy d lessor under Vtis Agreement. (e} Fury provision d dos Agreement wFtlch ceases m be vend for wA'rataver reason aro the bas «sum pmdeiar vvouW matenalty atlvensety affect Ne rights «semnty M lasvor. (f} Lessee atlntits in witting Its imdnty m pay 1& obfigeiom. 1 asses tldauOS m one a more d Its anrer oNiga9ons. Lessee applies «mrwena m the appolMrrleM d a reoeiveror a cusbdan m manage Its afFairs. Lessee makes a 9errere amiQrment for the berrefil M «etltt«s. Sediwr 9.02. RenMtlies on DemWt. WFrenever arN EueM d DetaWl edata, I,es..o^ r etrdl have the rtgM b fake ore w arty combindlan d Ifte fdkwnrg rerrretlle steps: (a} W4h «7Nlhatt termhretirrg ihk Agreemena. Lesaw may rledere all Rarest Payments and other amounts payable try Lessee hereunder b the end wfhe then mnent Budget Veer b be immetlieely due and payable. (b) Wsh w without tennretirg tttis Agreemera, lessor may require lessee a lessee's experree m redeliver airy w an d rho Egreprrent m lernr as provded below b Secton 8.09. Sum delivery shat trite pbce w11Nn fffleen (75) dare alter life evem d UefaWt ocmrs. V Lessee tots m ddhrer the Equlprront, I.easor may areal the premises where the Equipment is located and take pmsession of the Equipment aril charge Lessee for met ixuned. Notwshstandirg that Lesmr has taken possession d the Equipment, l asses shall stlll be obligMetl to pay the rerctalning Rental PayrreMe due up until the entl d the then cunent Original term or Renewal Term. Lessee will ba liable for any damage to the Equipment mused by Lessee ortts employees w agergs. (c) Lessor may take whatever edlon et law or In Squily itrM may appear nemssery or deGrebla to eMOrca tts righi3. Lessee shall be responsible to Lessor for all cods Iwarred by lessor in the eMwmmeM d Its rf~tfc tauter this Agreement including, but rat Ilmltetl ro, reasonable etlwney tees. Sedan 903 No RenrxW Exduswe. No rwrleM herein conferred upm «re~erved b Lessor is inteMed to he exclusive and every such rercretly shall he mmulative entl shall he in eddtion b every other nemetly given mtler this Agreement now w hereafter existing a law w in equiv. No delay or omisslm to exerdse any right w power amming upon any default shell Impdr any such ngM or shall be cw,amed to be a waiver ihered. Secfion 004 Retum d EaulornaM entl Stwem (a) Suoewler. The Lessee shall, M tts own expense, surcender the Equipment to the Lessor in the evert of a Dafautt w a Non-appropndion by delivering the Equipment to the Lessor to a Imalbn acrossible by mmrcwn carder sort desi~nMed by lessor. M the mss Utat any of Me Equipment consists d sdlware, Lessee shml destroy all iMarglble Hems mretltufing such Sdtware awl shell deliver to Lessor dl tangible Items mrudttutirg such eoThvare. At LeSeore request, Lessee shall also cenly in a firrn acmpteda to Lessor that Lessee fras mmpllW wtth the show sotlvldre return provisims aril that cosy will immer8etety cease using the sotlware and that they shall pemd Lessor awU« the verd« d the sotlwao b irrsped Lessee's lomaore b verify mmpllarrce with the temrs hereto. (bj Delivery The EgdprtwM shat be tlelNrered to the bmfion dealgretdi by the Lessor by a common mrtier unless the Lessor agrees in wMing that a common cornier is not neetletl. WFren the Eglapmad Is tlelNered into the custody d a common confer, the Lessee shall arreixde tw the awppi~ d Ule ttem and tts Irmurance In harett in accordenm wtth the Lessors irisiructian6 entl at me Lessee's sole ezperlsa. Lessee d tls expelrse shall completely sever awl dsmnned the Equipment w its component ~ irwn the Lessee's property all wtthod liebllay to Uie Lessor. Lessee shell peck or crate the Egdpmant and all of the mmporrent pans of the EgnxpnneM cerHdry and in acmrdarrm wUh arty remmntentlatlms d lira menndectlrer. ills Lessee shatl ddN« to the Lessor ins plats. spedfimliwns aperetiat manuals or otlrer wartantlea entl dacumaMS fumiahed bythe rrendadurer «veMar m the egWpmeM aril such other tlocumenta N the Lessee's possessim relMing to Ole mafnscrrwxa ant mdtptls d operafon death Equpment. (c) Cwrdlkxr: When Itie Equipment is siarenderetl to the Lessor a shill 6e in the mndttim ant repair required to 6e meinidr,e0 under this Pgreement. It will also meet all reguletay wdifiorm necessary fir the Lessor to sell or lease tl b a iNM party and be tree d ail Ilene. If Lessor reaswtahty detertnires Una the Equlpmera w an tlan d the EgrlpmeM, race tt is reW meQ U not N the mndtlm mquir~ hereby. lessor may cause the r~,alr, service. upgrade, matlifimibn w overhaul d the Equlpmem «an ttem d the Equipment b achieve such contlttbn end upm demand, Lessee shill promptly reimburse Lessor for all amolmta reasonabty expSndetl In connection wim the fnregovg. (tl) Sbrage: UPon wntlen request M the lessor. the Lessee shall provide free St«age (w Ure Ecµpmera «any tlem d th Equipment M a perkd rat to exceed b'0 days after the el¢imfion d its lease tam before resuming tl b the t xewr. The Lessee shall arrerge for the irrsunrnce des«Ibetl to mntiwne in hAl force ad egad wtlh rasped to Such ttem tluring tts storage periotl entl the lessor stall reimbunse the I„ssee on OenneM for the iricremenml premium rail of providing such irrenxance. X Mhcallsreous section t0.o1 Notices. All radices shah be suftidenity gnren aril shall 6e Uaenrletl given when tleAVaretl « mailed by re~deretl mall, posmge prepaid, to the pales al their reapecllve places d business as first set forth herein «as the pertles shell dasfgmte hereafter in wrisrg. Section 7002. Binding EUed. Tors Agreement stroll inure to the benefit d entl shell be binding upon Lessee ant Lessor aril 1heU respective successors and assigrrs. Section 10.03. SeverebiNty. In the even) any Perron d Ura Agreemmd shall be held imelid « unentorceabie by arty marl of oompeteny junstlic6on, such haMSg s71M1 rat invelidare «rentler uneidorceable any scow prorisim hared. ~..~k,n 2009 A b Addentl (:trerrrre ModifimLUns. ThB Agreement may 6e ameMetl, added ro, rirergetl « rclotlified by wrMen agreement dory ezeculed by Lessor aril LeaSee. Sedan t0 05. Exett8m in Comterowls. This Agreement may be sirwtllenamsly ezewled in several cwnteryafs, each d wwdt stroll be an original and a1I d which shell mnsMde but once ant tlno Same Inslnarem. Sedbn 70.00. Cadlorm. The mptlwrs «hsatings In this Agreerrent do rat de0re, limn w tleSCribe the scope w Intent d any Previsions w aemms d this Agreement. 9Stlim 10.07. Master Lease. Tiffs Agreement ran be Wlized as a Master Lease AgrearrraU. This rrrears that the LeSSw entl the Lessee may agree to the lease d atltlsiorel EquipmSm uMer flea Agreement d some point in the tuUxe by axecraing one « more Addy Sd,edAes to EzMbit A, ExMbit R, E%1uNt C and 6dtibF E as wetl as om« exhibits w tloa,meMa that nray be requred by Lessor. Additlorel Schedules will 6e mnsewtlvey numbered on each d the e#sbils wMCh rreke upfhe Addttiorrel Sdnetlde and aN Una tams and cwdPoas d the Agreement shell govern each Adtllfiorrel Sc1,aiMe. Sedian 70.08. Entlre WriUm. This Agreement mrsUmfes th entlre wrifing behveen Lessor and Lessee. No waiver, consent, modifimfim or large d lernrrs d this Agreement shell bird elgr« pally rssess N wnfing and sigrred by Udh parties, and lfren such waive, mrserN. rrmditlcatiarr w dtarge shall be aifrx:tive orsY in the spedfic IttaMnm and for the Spacdc parpma gMan. Them are m udarefendngs, egraemanas, represeMdlors, mMitlors, «wanardies, express «Ingdied, vdUdr are ml spadfied herein regaMing Mss FgreemeN or the Equipment based hereunder. Arty tams entl mntllibns of any purchase onler « dher tloean,ents submMm by Lessee in mnnedmn with this Agreement wMCh are In altlifim to w inmrelaent wflh the terms and mndillons d tNS Agreement will riot 6e dMing m Less« entl will rat aPWYto tltls Agreement. Lessor and Lessee have mused this Agreement to he executed in their names by their tluty authonzetl repreaeMasives IiSled below. KERR COUNTY SECURITY STATE BANK & TRUST T. ~ Sig~ture a,~,«,„. / ~ e T ~, 9tg lure "C c? e~"~~a .6~ ,° Ca ~. ,~, David W. Derry, T.oan Officer Typed Name and Title Schedule (01 i EXHIBIT A DESCRIPTION OF EQUIPMENT RE: Lease With Option to Purchase Agreement dated as of December 1, 2005, between Security State Bank & Trust (Lessor) and Kerr County (Lessee) Below is a detailed description of all the items of Equipment including quantity, model numt~er and serial number where applicable: One (1) Asphalt Zipper Milling Machine Location of Equipment: Road & Bridge yard - 4010 San Antonio Hwy. - Kerry lle, TX Schedule (01) EXHIBIT B PAYMENT SCHEDULE RE: Lease With Option to Purchase Agreement dated as of December 1, 2005, between Security State Bank & Trust (Lessor) and Kerr County (Lessee) Date of First Payment: October 1, 2006 Original Balance: $79,119.25 Total Number of Payments: Three (3) Number of Payments Per Year: One (1) Pmt Due Rental Applied to Applied to *Pun;hase No. Date Payment Interest Principal Qption Price 1 1-Oct-06 $28,987.9$ $3,541.03 $25,446.95 $53,672.30 2 1-Oct-07 $28,987.98 $2,844.63 $26,143.35 $27,528.95 3 1-Oct-08 $28,987.98 $1,459.03 $27,528.95 $0.00 Kerr County Pat Tinley, Kerr County Judge ~~ °~.'~,,~ ~ 'mot 'Assumes all Rental Payments due to date ere paid ~j''~.~.,o ~ Schedule (01) EXHIBIT C CERTIFICATE OF ACCEPTANCE RE: Lease With Option to Purchase Agreement dated as of December 1, 2005, between Security State Bank & Trust (Lessor) and Kerr County (Lessee) I, the undersigned, hereby certify that 1 am a duly qualified representative of Lessee and that I have been given the authority by [he Governing Body of Lessee to sign this Certificate of Acceptance with respect to the above referenced Agreement. I hereby certify that: 1. The Equipment described on Exhibit A has been delivered and installed in accordance with Lessee's specfiications. 2. Lessee has conducted such inspection and/or testing of the Equipment as it deems necessary and appropriate and hereby acknowledges that it accepts the Equipment for all purposes. 3. Lessee has appropriated and/or taken other Iawfui actions necessary to provide moneys sufficient to pay all Rental Payments required to be paid under the Agreement during the current Budget Year of Lessee, and such moneys will be applied in payment of alt Rental Payments due and payable during such current Budget Year. 4. Lessee has obtained insurance coverage as required under the Agreement from an insurer qual~ed to do business in the State. 5. Lessee is exempt from all personal property taxes and is also exempt from sales and/or use taxes with respect to the Equipment and the Rental Payments. 6. No event or condition that constitutes or would constitute an Event of Default exists as of the date hereof. 7. The governing body of Lessee has approved the authorization, execution and delivery of this Agreement on its behalf 6y the authorized representative of Lessee who signed the Agreement. 8. During the term of the Agreement, the Equipment will be used for essential governmental functions. Such functions are: Road work 9. Please list the Source of Funds (Fund Item in Budget) for the Rental Payments that come due under Exhibit B of this Agreement. Tax revenues 10. Please state why you reasonably expect and anticipate that adequate funds will be available for all future Rental Payments that will come due under Exhibit B. Funded by tax revenues Kerr County Pat Tinley, Kerr County Judqe Typed Name and Title \ co1l7NEq~~ -~,°- s (F• ~ _;'= "x ~`. , t; ;~ << ~ u e KERB COUNTY ATTORNEY COUNTY COURTHOUSE, SUITE BA-103 700 MAIN STREET EXHIBIT D OPINION OF COUNSEL Date: Security State Bank & Trust I ] 30 Junction Highway Kerrville, Texas 78028 REX EMERSON KERRVILLE, TEXAS 78028 RE: Lease with Option to Purchase Agreement dated as of December 1, 2005, between Security State Bank & Trust (Lessor) and Kerr County (Lessee) Ladies and Gentlemen: As legal counsel to Lessee, I have examined the foregoing Agreement and such other opinions, documents and matters of law as I have deemed necessary in connection with this Agreement. Based on the foregoing, I am of the following opinions: 1. Lessee is a political subdivision of the State of Texas, or a constituted authority authorized to issue obligations on behalf of a political subdivision of the State. 2. Lease has the requisite power and authority to purchase the Equipment and to execute attd deliver the Agreement and to perform its obligations under the Agreement: The Agreement and the other documents either attached hereto or required herein have been duly authorized, approved and executed by and on behalf of Lessee, and the Agreement is a legal, valid and binding obligation of Lessce enforceable in accordance with its terms. 3. The authorization, approval and execution of the Agreement and all other proceedings of Lessee relating to the transactions contemplated hereby have been performed in accordance with all open meeting laws, public bidding laws and all other applicable state and federal laws. 4. There is no litigation, action, suit or proceeding pending or before any court, administrative agency. arbitrator or governmental body that challenges the authority of the Lessee or any of the Lessee's officers or etnployees to enter into the Agreements. 5. The above opinion is for the sole benefit of the Lessor listed above and can plied upon by the Lessor or any permitted assignee or subassignee of Lessor under the agrees en~. L/ ,,5' nature of Legal Counsel MAIN NUMBER (830) 792-2220 HOT CHECKS (830) 792-2221 ~ FAX (830) 792-2228 Schedule (01) EXHIBIT E LESSEE RESOLUTION RE: Lease With Option to Purchase Agreement dated as of December 1, 2005, between Security State Bank $ Trust (Lessor) and Kerr County (Lessee) At a duly called meeting of the Governing Body of the Lessee (as defined in the Agreement) held on December 12 , 2005 the fallowing resolution was introduced and adapted: BE IT RESOLVED by the Governing Body of Lessee as follows: 1. Determination of Need. The Goveming Body of Lessee has determined that a true and very real Head exists for the acquisition of the Equipment described on Exhibit A of the Lease With Option to Purchase Agreement dated as of December 1, 2005, between Kerr County (Lessee} and Security State Bank & Trust (Lessor). 2. Approval and Authorisation. The Governing Body of Lessee has determined that the Agreement, substantially in the form presented to this meeting, is in the best interests of the Lessee for the acquisition of such Equipment, and the Governing Body hereby approves the entering into of the Agreement by the Lessee and hereby designates and authorizes the following person(s) to execute and deliver the Agreement on Lessee's behalf with such changes thereto as such persons} deem(s) appropriate, and any related documents, including any Escrow Agreement, necessary to the consummation of the transaction contemplated by the Agreement. Authorized Individual(s): Pat Tinley, Kerr County Judge (Printed or Typed Name and Title of individual(s) authorized to execute the Agreement) 3. Adoption of Resolution. the signatures below from the designated individuals from the Goveming Body of the Lessee evidence the adoption by the Goveming Body of this Resolution. Secretary, Board Chairman or other member Typed Name & Title Yat Tinley, Kerr County Judge `~, '~ r5:-. (Typed Name and Title of individual who signed directly above) ~`-'~-~~+ ;~ Attested By:~(~ (Signature of additional peraon'(vho can witness the passage of this Resolution) Typed Name&Title: Cheryl A. Thomason, Administrative Deputy Clerk (Typed name of individual who signed directly above) Schedule (01) EXHIBIT F BANi( QUALIFIED CERTIFICATE RE: Lease With Option to Purchase Agn;ement dated as of December 1, 2005, tu3tween Security State Bank & Trust (Lessor) and Ken• County (Lessee) Whereas, Lessee hereby represents that it is a "Bank Qualified" Issuer for the calendar year in which this Agreement is executed by making the following designations with respect to Section 265 of the Internal Revenue Code. (A "Bank Qualified Issuer" is an issuer that issues less than ten million ($10,000,000) dollars oftax-exempt obligations during the calendar year). Now, therefor, Lessee hereby designates this Agreement as follows: Designation as Qualified Tax-Exempt Obligation, Pursuant [o Section 265(bx3)(Bxi) of the Internal Revenue Code of 1986 as amended (the "Code"), the Lessee hereby specifically designates the Agreement as a "qualified tax-exempt obligation° far purposes of Section 265(bx3) of the Code. in compliance with Section 265(b)(3)(D) of the Code, the Lessee hereby represents that the Lessee wilt not designate more than $10,000,000 of obligations issued by the Lessee in the calendar year during which the Agreement is executed and delivered as such "qualified tax-exempt obligations". 2. Issuance Limitation. In compliance with the requirements of Section 285(bx3xC) of the Code, the Lessee hereby represents that the Lessee (including all subordinate entities of the Lessee within the meaning of Section 265(b)(3)(E) of the Code) reasonably anticipates not to issue in the calendar year during which the Agreement is executed and delivered, obligations bearing interest exempt from federal income taxation under Section 103 of the Code (other than "private activity bonds" as defined in Section 141 of the Code) in an amount greater than $70,000,000. Fqrr„ $®3{7-~7Ci Information Return for Small Tax~Exempt OMB No. 1545-0720 (Rev. Novembar2000) Governmental Bond Issues, Leases, and Installment Sales oeparveax orrrerroasury ~ Urxler IMertral Revenre Code section 149(e) bremal Rewrrte semen CeWOn: use Form8038-G nine issue gYCe offhe Issue b $100,000 «rrore. Re in AuthOri Check box'rf Amandad Rewrn 1., beasts terns 2 rssuarsem~ridemirimlon mmber Kerr Coun 60 1494 3. Numbaa,tl dreel(orPOam,i(meilbmtEHivere0le sircelatld'ess) ~0~~in10 700 Main Street 4 CiIY. ~+'^.«poel oRCe.sble,and ZIP wde 5. Report number Ketrville, Texas 78028 5 - 6. Nana a,tl iNedoRrn or pgN represempiva mom Ug IRS may call kraeinrarrution t Tebphme numberof olAmr«bgal rapmse~tive Mindy L. Williams, County Auditor (830) 792-2235 Deacri lion of Obli ations (CF1eck if re rtin : a si le issue or on a consolidated basis ) 8a Issue price of obligation(s) (see instructions) . .. Ba $ b Issue date (single issue) or calendar year (consolidated) (see instructions) 9 Amount of the reported obligation(s) on line 8a: a Used to refund prior issue(s) .. .. 9a b Representing a loan from the proceeds ofanothertax-exempt obligation (e.g., bond bank) .. 9b 10 0 the issuer has designated any issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check this box .. ^ 11 0 any obigaton is in the fomn of a lease or installment sale, check this box Please Sign Here GENERAL scum i ia~ onwrev w Under penalties of perjury. I deGare that I have examinetl this return and aaompanying schedules and statemerris, and, to the best of my knowledge and betlet, they era true, mnect, antl complete. l a ~` Mindy L_ Wil3iafts, County Type erpiM mme aid lNe Auditor Section references are to the Internal Revenue Code unless otherwise noted. PUrpO6e Of Form Form 8036-GC is used by the issuers ortax~cempt govemmerdal obligations m provide the IRS with information required by section 149(e) and to rgni[or the requiremerris of sections 141 150. Who Must File Issuers oftax-exempt governmental obligations with issue prices of less than $100,000 must file Fonn 8038-GC. Issuers of afax-exempt govern-mental obligation with an issue price of $100.000 or more must file Fonn 6038-G, Information Remm IorTex- F~rempt Govemmenta/ Obligations. Flling a separate rehrm-Issuers have the option to file a separate Form 8038-GC for artytax-exempt govemmanwl obFgetion with an issue pica d less than $100,000. An issuer of etax-exempt bond used to finance comtmction expeMihrres must file a separate Fonn 8036-GC for each issue to give notice to the IRS that an election was made to pay a pena8y in Geu of arbnrege retxde (see the line 12 inshuctions). Filing a corsoidated rewm-For a0 tax~xempt govemmerdal obligations with issue prices of less than $100.000 that are not re)mded on a separate Form 8038-GC, en issuer must file a mrsotidated infamratbn return inrLrding all such issues issued within the calentlar year. Thus, an issuer may file a separate Form 803&GC for each aF a number of sma8 issues and report the remainder d sme8 issues issued durhrg the calendar year an one consoAdated Form 8038-GC. However, a separate Form8036-GC must be filed to give the IRS notice of the eteclion to pay a penally in lieu of arbitrage rebate. When to File To file a separate return, file Form 8038-GC on or before the 15"' day dthe second calarldar nwMr after the cbse of the mlendar quarter in which the issue is issued. To file a coroolldafed rewm, file Famr 8038-GC on a before Febmary 15'" of the calendar year in which fhe issue is'ssued. late fllirrg. An issuer may be granted an extension aFtime to file Fans 8038-GC under Section 3 of Rev. Proc. 8&10, 1988-1 C.B.635,'rf h is detertninad that the failure to file on time rs nd due to willful neglect. Type or print at the top of the fortn,'This SlatemeM "s Submitted in Accordance with Rev. Prot. 68-10' Attach fo the Fonn 8038-GC a letter briefly stating wiry are form was not submitted to the IRS on time. Also ind"Icete whether the o6Agation in question's under examirrafbn M the IRS. Do not submk copies of any bond documents, leases, or instaihnem sale dowments. Where to File File Fonn 8038-GC with the Internal Revenue Service Cemer, Ogden, UT 84201. Other Forns that May be Required For rebating arbitrage (or paying a penalty in qeu of arbitrage rebate) to the Federal govemmed, use Form 8038-T, Arbihage Rebate and Penalty in Lieu ofArbibage Rebus. For pdvale acliv4y bonds, use Fomr 81138, Information Return for Tax-F,rempt Private A~vityBond Asaues. Rounding to Whole Dollars You may shay the money items on this return as wtxrle-dollar amourds. To do so, drop any amount less than 50 Dents all increase arty amount from 50 cattle through 99 cells to the next higher dolor. Definitions OdigaBorrs. This refers to asingletax-erzempt govemmamal obtigation'd Fortn 0038-GC is used for separate reporting qr to muPople t8x-exempt govemmerrtal obligations iF the form is usetl for corrsofidaled eponing. Tax~xempt oGiga6on. This is a bond, installmem purchase agreement, orfinandal lease, on which the imeres[ s excluded tram incarrre under secton 103. Taxaxempt governmental odiga8on. A fax- exempt obligation ttrat s not a private activity bond, (see belwv) "s 818x-exempt govemmemal obligation. This irxiudes a bontl issued by a qualified volunteer fire tlepamnent under section 150(e). Private activxy bond. This irrdutles an obligation issuetl as pert of en issue in which: More than 10% d the proceeds are fo be used for arty pdvale activity buseress use INSURANCE REQUIREMENTS Pursuant to ArBcle V in the Lease With Option to Purchase Agreement, you have agreed to provide us evidence of insurance covering the property in the Agreement. A Certificate of Insurance naming all insured parties and coverages must be determined to us as soon as possible, but no later than the date on which delivery of equipment occurs. If you have not taken possession of the equipment, please write a memo to Secuzi State Bank & Trust statinywour carrier, insurance agent and telephone number to reach them upon delivery. In the case of self-insurance, the amounts of liability and physical damage coverage aze to be listed on some form of certificate supplied by you. In addition, information regazding the nature of your self-insurance program should also be forwazded to us as soon as possible. INSURANCE REQUIREMENTS BY Security State Bank & Trust: 1. LIABIL[TY / Minimum of $1,000,000.00 combined single-limit on bodily injury and property damage. / Security State Bank & Trust MIXST be listed as additional insured and loss payee. 2. PHYSICAL DAMAGE / All risk coverage to guarantee proceeds sufficient to pay the applicable Purchase Option Price as set Earth in Exhibit B of the Agreement, Security State Bank £y Trust MiIST be listed as additional insured and loss payee. 3. ENDORSEMENT / Lessor will receive at least thirty (30) days written notice f''°m Insurer prior to alteration, cancellation or reduction of insurance coverage. PLEASE FAX THE CERTIFICATE TO US AS SOON AS POSSIBLE AT (830) 895-2000, AND MAIL THE ORIGINAL TO: Security State Bank & Trust 1130 Junction Highway Kerrville, Texas 78028 YOUR ASSISTANCE IS GREATLY APPRECIATED TO COMPLETE THIS TRANSACTION, IF YOU HAVE ANY QUESTIONS, PLEASE GIVE US A CALL AT (830) 895-2000. Kern County Insurance Company: ^.'exas Association of Counties Agent's Name: Karen `!7~erri_en Telephone #: 300-456-5974 F8X #: 512-473-1426 Address, City, State & Zip: P. o, sox 2137_, Austin, 'texas 73763 PROPERTY AND CASUALTY SELF INSURANCE FUNll CERTIFICATE OF PI20PERTY COVERAGE The Texas Association of Counties Property and Casualty Self Insurance Fund is created to enable each county or county-related governmental entity to provide self insurance coverage against physical damage claims. The specified county or county related governmental entity participates in this Fund tinder an agreement pursuant to the provisions of and operates tinder the Chapter 791, Texas Government Code Annotated. NAME AND ADDRESS OF COVERED COUNTY: ,-,n Kerr County ~ `~~ 2'~~ ,,,.. J 700 Main Street Kerrville, TX 78028 U UE~ {] 1 1005 Coverage Agreement No.: 1330/10 Coverage Period: 10/24/05 to 10/1/06 PROPERTY Includes the following coverages: Al] risk of physical loss subject to coverage terms, exclusions and conditions. With respect to the following property: AZ480 HB Milling Machine #AZ48HB00219 mounted on trailer #109FS0826U023442 [X] Actual cash value Deductible: $1,000 Total Value: $79,019 This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does no[ amend, extend or alter the coverage afforded by the Fund. The certificate does verify that coverage has been placed in force for the period indicated above. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate may be issued or may pertain, the coverage provided by the Fund described herein is subject to all the terms, exclusions and conditions of the coverage document issued by the Fuud. The coverage is primary without right of contribution from any insurance carried by any additional insured. Should any of the above described coverage be altered or cancelled the Fund will endeavor to mail ten days written notice to the certificate holder, but failure to mail such notice shall impose no obligation or liability of any kind upon the Fund. J / Lien Holder /Loss Payee Authorized Representative SECURITY STATE BANI{ & TRUST Texas Association of Counties P.O. BOX 29004 1210 San Antonio St. 1130 JUNCTION HIGHWAY Austin, TX 78701-1834 KERRVILLE, TX 78029 (512) 478-8753 Cer[ifrcc~[e Lssuecl November 28, 2005 COUNTY GOVERNMENT RISK MANAGEMENT FUND CERTIFICATE OF GENERAL LIABILITY COVERAGE The Texas Association of Counties County Government Risk Management Fund (the "Fund") is created by Chapter 119 of the Local Government Code to enable each county to provide self insurance coverage against liability claims. The specified county participates in this Fund under an agreement pursuant to the provisions of and operates coder the Chapter 791, Texas Government Code Annotated. NAME AND ADDRESS OF COVERED COUNTY: ~~! Kerr County h; "'~' ~' " 700 Main Street 1 Kerrville, TX 78028 Id ~3(:.~ Q 1 ~~~~ "~ Coverage Agreement No.: Coverage Period: Limits of Liability: Bodily Injury $100,000 per person $300,000 per occurrence Property Damage $100,000 per occurrence Deductible: $5,000 1330 10/24/05 to 10/1/06 GENERAL LIABILITY With respect to the following property: AZ480 HB Milling Machine #AZ48HB00219 mounted on trailer #]09FS0826U023442 This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not amend, extend or alter the coverage afforded by the Fund. The certificate does verify that coverage has been placed in force for [he period indicated above. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate may be issued or may pertain, the coverage provided by the Fund described herein is subject to al] the terms, exclusions and conditions of the coverage document issued by the Fund. The coverage is pritnary without right of contribution from any insurance carried by any additional insured. Should any of the above described coverage be altered or cancelled the Fund will endeavor to mail ten days written notice to the certificate holder, but failure to mail suc ~ notice shall impose no obligation or liability of any kind upon the Fund. ~ ~'7 ~ ~/ ~ Additional Insured Authorized Representative SECURITY STATE BANK & TRUST Texas Association of Counties P.O. BOX 29004 1130 JUNCTION HIGHWAY KERRVILLE, TX 78029 1210 San Antonio St. Austin, TX 78701-1834 (512)478-8753 Certificate Lssved November 28, 2005 TAC 7/97 GENERAL LIABILITY Automatic Additional Insureds Endorsement- Equipment Leases This endorsement modifies the General Liability Coverage Document to which it is attached. This change is effective on the inception date of the Document unless another date is indicated below. The following provision is added to Section II -Who is a Covered Person: Any person(s) or organization(s) (hereinafter called "Additional Insured") with whom the Named Member agrees in a written equipment lease or rental agreement to name as an insured is an insured with respect to liability arising out of the maintenance, operation or use by an employee of the Named Member of the equipment leased, as shown on the schedule below, to the Named Member, by such person(s) or organization(s) subject to the following additional exclusions. The coverage provided to the Additional Insured does not apply to: Bodily Injury, property damage or personal injury occurring after the Named Member ceases to lease the equipment. Bodily Injury, property damage or personal injury arising out of the sole negligence of the Additional Insured. ~ ~ `~~ ~- ~ ~~// Property damage to: IIILLLIIInllIH1H( SEC C~ 1 2005 IU!! Property owned, used or occupied by or rented to the Additional Insured; or - 1 Property in the care, custody or control of the Additional Insured or over which the Additional Insured is for any purpose exercising physical control. ADDITIONAL INSURED: SECURITY STATE BANK & TRUST P.O. BOX 29004 1130 .?UNCTION HIGHWAY KERRVILLE, TX 78029 SCHEDULE OF LEASED EQUIPMENT: AZ480 HB Milling Machine #AZ48HB00219 mounted on trailer #109FS0826U023442 ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS OF THE COVERAGE REMAIN UNCHANGED. Endorsement: GL/AIEL Endorsement Effective Date: October 24, ?005 Named Member: Kerr County Attached to and forming part of Coverage Document Number: 1330 TAC-GL/AIGt. (09/01) Pn°~ 1 or 1 Board Approved 08/lfi/01 -11 (25/2F~i25 11:5Q 8N1-785085r • dNVf)7CE Ple>•sr remit payment to: Asphalt Zipper, dnc 310 W 700 S Pleasant t;rbvt, ItT 840fiZ Tott-Frbe (88$) 805_307.0 Fax (8t17) 78_5-0857 ASP4ALT 4IPPER PAGE ©2 I~spb~tt lec~~. Bill'In : COUKE COUNTY OF KERR RUAD ~ BK[DGF. 4010 SFlN .4NTONlO.HWY KfRRV1LGE. TA 78028 Order npte: 102N «005 PHCkinR Slip: 9709 A0. Terms: NQ 15 Due .Dave: 11;12/2005 tnvoicr. ib ;AZSR11D0219 Sales Urder ID :477a fnvpi90 Date If!i2K/2005 Ship Date :3N2FR0055:2':Sh PM Ca.rcpmcr PO 7b : NUGA01 Page Nr+mear :Page I ct I Slup'I'u i:0[JN'1'Y OF KERR kOnD & Dkli}GE an l n SAV .~*rTC'NIq FrwY k:FRRVILLF.. TX 1802A FOR: Currency T,ypc: tih,p vlclhnd_ Hill nC Lading: plcaszn[Gove USD Com;rtzk Line \'hr/ !tom 1D! item Name Cnit oC SmppoO - ~ EaMndM ~'O Linc f'utll ilem i,~, M1rt ,Q,~' it Priec .9~AI,tl ,Tp% ice I' A7s4HOHR3MTT/480FID w!$Tp ca 1.0000 R74A50.ODOG 57a.4SS.UG Spray Apr, 20" Fnnt, 4H" Heavy Duty CuturhepC, Unuhlc Asle Tra'.iCr T 8't0011 / Tt41tLEA, TANDL!N no 1.0000 53.DOn,0000 53,000.b0 AxLE ELF_CTRIC DRAKE NSRp ' A'l.SUU Z i /AGAC Fcc LU00U 51.!69.2500 $1,!69.25 3 't'otal: 579.11x.23 Saic. Tex: 30.00 VAT Tax: .SO.OU 9hipPing Lnargea: :60.[10 VAT Freight: 50.UU Aue Amount: S?9,1 k4,25 Snr¢;nt inat: EPN#: A~•tlhfil H65 htncnme # 4gNU0279 - Traila~ # ]09FS08267J02?492 -Date °,hipPOd - IQ'7lO5. 370 West 700 Saufh, Pleasant Grove. lJT 84U62 . Phone: {807) 785-0706 . Fax: ;801) 785-0892 ww~m.asphaltzl pN~r.cGm