ORDER NO. 29524 AWARD BIDS ON LEASE OF TWO ALL WHEEL BACKHOES WITH POWER TILT ATTACHMENTS Came to be heard this the 9th day of January, 2006, with a motion made by Commissioner Letz, seconded by Commissioner Baldwin. The Court unanimously approved by vote of 4-0-0 to: Award bid for the lease of two all wheel baclchoes with power tilt attachments to Holt Caterpillar Equipment. ~95~~/ l , .5 COMMISSIONERS' COURT AGENDA REOUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REOUEST AND DOCUMENTS TO >3E REVIEWED BY THE COURT MADE BY: Leonard Odom MEETING DATE: January 9, 2006 OFFICE: ROAD & BRIDGE TIME PREFERRED: SUBJECT: Consider, discuss and take anaroariate to award bids on the lease of two all wheel backhoes with Dower tilt attachments. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Leonard Odom 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 as 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 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. i ~ Bid Summary for Specification 0041-05 Lease Two All Wheel Backhoes with Power Tilt Attachments Company Brand Model Monthly 60 month Repair Trade-In Grand Per Unit Lease Expense 555A Ford Total Per Unit Two Unlte Holt Caterpillar 420D $976.99 $58,619.40 $275.00 $4,000.00 $113,788.80 Equipment Depot New Holland LB75B $1,182.04 $59,516.00 $0.00 $3,000.00 $118,036.00 RDO Equipment John Deere 310SG $1,116.00 $66,960.00 $0.00 $7,000.00 $128,920.00 Texana Machinery CASE 580 Super M $1,379.36 $82,761.60 $7,460.00 $10,D00.00 $170,443.20 BID FORMS for LEASING (2) TWO 420D BACKHOE LOADERS With POWER TILT ATTACHIVVIENTS (or equivalent) Kerr County Road & Bridge 4010 San Antonio Hwy. Kerrville, Texas 78028 830-257-2993 SPECIFICATION # 0041-OS PAGE 2 12/1/05 Invitation For Bid No. 0041-OS Two (2) All Wheel Drive Baclchoe Loaders with Power Tilt Attachments Bid Due Date: Thursday, December 22, 5:00 p.m Opening date: December 27, 10:00 a.m Thu entire bid packet must be completed and returned I. General A. Kerr County Clerk will accept sealed, competitive bids for the lease of two (2) AWD Backhoe Loaders with Power Tilt Attachments.. B. Bids must be submitted no later than 5:00 p.m., Thursday, December 22, 2005, at the Ken County Clerk's Office. Bids will be opened at 10:00 a.m., Tuesday, December 27, 2005, at the Kerr County Commissioners Court. Bids must be original and in sealed envelopes cleazly marked "Sealed Bid 0041-05." Bidders aze invited to attend the bid opening. C. Bids must be submitted on the Bid Forms as provided with this Invitation for Bids, or a copy thereof. Bidders must provide unit prices for each Item Number on the Bid Sheet. A "No Bid" or blank quote for any Item Number on the bid Sheet will be considered a rejection of the entire bid. A "No Chazge" or "Zero" quote will be considered as incurring no cost to the County. D. Kerr County is not responsible for late delivery by the United States Postal Service or any independent carrier. Late bids will be returned unopened without consideration. Facsimile transmittals aze not acceptable. E. Bid award will be made to the responsible bidder offering equipment meeting specifications at the lowest total price as shown on the Bid Form. F. Kerr County reserves the right to accept or reject any or all bids. G. As this bid is expected to exceed $25,000.00, a bid bond often percent (10%) of the bid price must accompany each bid. Bonds submitted by unsuccessful bidders will be returned within ten (10) days of bid opening. The bond submitted by the successful bidder will be returned upon equipment delivery. H. All equipment ordered by the County must be delivered, at no cost to the County, to Kerr County Road & Bridge, 4010 San Antonio Hwy., Kerrville, Texas 78028. SPECIFICATION # 0041-OS PAGE3 12/1/05 II. Guazanteed Total Maximum Repair Costs A. The bidder shall state on the Bid Form the guaranteed maximum total costs to the County for repair of the wheel loader specified herein, pursuant to the terms stated herein. B. The County will assume responsibility for all repair costs resulting from damage due to fire, windstorm, flood and rising waters, lightning, theft and pilferage, vandalism, accidents, and operator and mechanic's negligence. Total cost of the repairs due to the above circumstances will not be included in computing the guazanteed maximum total cost of repairs covered under the contract. C. The successful bidder shall pay for all repairs (including parts and labor) to the equipment covered by the manufacturer's warranty, and these costs shall not be included in the guaranteed total costs of repairs. D. The County shall assume, at its expense, all costs including labor to repair or replace all parts and components normally consumed in day-to-day operations such as tires, tubes, fire repairs, lubricating oil, filters of all types, grease fuel, antifreeze, cutting edges, batteries, headlights, glass breakage, belts, brake lining, cleaning and painting. These costs will not be included in computing the guaranteed maximum total cost of repairs under this contract. E. At the termination of the contract, the vendor agrees to pay to the County the cost of repairs that aze in excess of the amount bid on REPAIR EXPENSE. F. The County shall maintain the equipment in accordance with manufacturer's recommendations. G. The successful bidder has the right to inspect the equipment during normal department working hours and to make recommendations for repairs and improved maintenance in keeping with the requirements stated by the manufacturer in the shop manual for the maintenance and repair of the equipment. H. Any repairs, other than those covered in subparagraphs B, C, and D of this section, which exceed $100.00 may be repaired by the vendor, at his option. If the vendor chooses to repair the equipment, repairs shall commence within one (1) day after notification by the County. L The accumulation of chazges from County labor and parts, as well as vendor invoices for repairs, other than those covered in subparagraphs B, C, and D of this section shall be the basis for computing the guaranteed maximum total cost of repairs under this contract. SPECIFICATION # 0041-OS PAGE 4 12/1/05 The vendor shall have the right to examine repair costs at any reasonable time. Should a dispute occur between the County and the vendor, as to whether a chazge should be included in computing the guaranteed maximum total cost of repairs, then the entire matter shall become subject to azbitration as set forth in the bid documents. Name of individual authorized to Signature: Firm Nazne: Address: ~(7_~Y10~ ~ D 7~i fa `2~~~~7~7~~-d Telephone: (ZlU)i2E~ FAX: (mil ) SPECIFICATION # 0041-OS PAGE 5 12/1/05 DATA SHEET for Ken County Road & Bridge 4010 San Antonio Hwy. Kerrville, Texas 78028 (830)257-2993 This specification packet must be completed and returned as part ofyour bid Bidders Name ~ L7 C'~9-~ Address: le ~~ Telephone: TO BIDDER: We will be accepting bids to lease two (2) All Wheel Drive Backhoes with Power Tilt Attachments in the best interest of Kerr County according to; parts, service, warranty, proven reliability, and not necessarily low bid. This bid is to include atrade-in of a 1985 Ford SSSA Backhoe Loader. All Wheel Drive Backhoe 1. Model 2. Engine 3. Hydraulics 4. Transmission 5. Front Axle 6. Brakes 7. Standazd Lights and Gages 8. Wheels and Tires 9. Canopy 10. Loader Bucket New -Current CAT 420D or Equivalent 89 Horse Power Net Closed Center/Piston Proposed Specifications C'~t L1~5~.~~1 ~ 4 Speed Forwazd &Reverse-Shuttle All Wheel Drive (4 wheel drive) Hydraulic Inboard Mounted Including flashers, tachometer, ~,Q~' ~ f2 "~ t~ hour meter, and Rotating Beacon ~ ~~19[,"5~~'~y~{ig~ Front-125/80 X 18 `~S~ ~ ~l ~ Rear -19.5 - 24 l OPR ROPS Canopy f2?O5 G~~1;ay/j,~op 9~~ ~_~J 1.4 CY General Purpose ti.~{ C'y C>~L~ ~`~Y` with 2 piece edge ~ SPECIFICATION # 0041-OS PAGE 6 12/1/05 11. Controls Excavator Style /~(~/~~ ~r 12. Counter Weight 1,000 LB Minirnum ~r~,~cb.,~.Q~ -w-~ ~ ~ "s ! ~~ n ~ 13. Stabilizers Reversible street pads ~n .n . / ~ Stabilizer Guazds 14. Operating Weight 16,700 Lb. Minimum /~ Ala !h ~,~;~ ~~= D~'~ ~~~~ 15. Power Tilt Attachment Power Tilt Attachment For Reaz Bucket With necessary hydraulics ~~~~a,~, j tfT- 16. Backhoe Dig Depth Standazd Stick 14' S" u ~~~ ~~r~ 17. Backhoe Buckets Quick Coupler Design Heavy ,/ , Duty ~~'`~ ~~~ " ~"r with teeth 36" & 24" ~~, f, ~ ~afLu~~f~i~ 18. Backhoe Bucket 14,712 LB. Minimum Dig Force l `7 `t o - ~~ 19. Machine Warranty Standazd Wazranty j~. _I/Jl~+'I . W~~ 20. Delivery 60-90 days or sooner p, /r FOB Kerr County 3 ~ ~A`l ~Dg, ~~ uD~ Any specifications that do not meet required specifications will not be considered. Kerr County ll reserves the right to reject any and all bids. Sealed bids will be accepted until 5:00 p.m., December 22, 2005, at the Kerr County Clerks Office oa the main floor of the Kerr County Courthouse. Sealed bids aze to be addressed to the Ken County Road & Bridge Department and be stated "SEALED BID 0041-OS AWD BACKHOES" on the envelope. Bids will be publicly opened and read at 10:00 a.m., December 27, 2005 in Commissioners Court. SPECIFICATION # 0041-OS PAGE 7 12/1/05 Bid Form for Lease of TWO (2) ALL WHEEL DRIVE BACKHOES WITH POWER TILT ATTACHMENT BID DUE DATE: Thursday, December 22, 2005 @ 5:00 p.m. Do not include Federal Tax or State Sales Tax. The necessary exemption cert~cates will be issued upon request. ITEM DESCRIPTION 1. ONE (1) NEW CURRENT BACKHOE Manufacturer and Model No: ~~~i `~ !~~ ~ ~1 warranty: Ivy fl1® .'~tA~ i'l ~ W E Time Needed for Delivery: ~ ~~ J~ A v _ ~ d . 2. Five (5) yeaz Lease (60 months @ $ ~ /mo) $ ~~ . In ~ 9 ~° 3. GUARANTEED REPAIR EXPENSE li 5 7 500 h fr d ours om very to yeazs or , ( e ~ ~~ whichever comes first)--- SHALL NOT EXCEED $ _ Q (~ ~~ 4. TOTAL COST for One (1) BID (Add Item 2, and Item 3) U / -~ 5. TRADE-IN ALLOWANCE FOR 1985 FORD SSSA BACKHOE $ ~~~ O -, 6. GRAND TOTAL (Item 4 x 2, minus Item 5) g~ BID FOR TWO (2) BACKHOE LOADERS $ ~~~ , /`~p~ BIDDER MUST SUBMIT A COPY OF THE LEASE AGREEMENT WITH THIS BID FORM I certify that the above BACKHOE LOADERS to be delivered under this bid will meet or exceed all of the minimum specificati ns and condi 'ons set forth by the County of Kerr. DATED THIS =Zo~ ~ DAY OF l ~'C~iG/ 2~005~/ /~7~ Bidding Firm:n d+/V G T-`Q'}.~~ Address: ! = ~7 a ~7 9/,Fr ~~D'b0/iPJ,,~ 7.$~O Telephone: L~ (Seal if Corporation) By: ,j' ,~ Title: ,G ~~~s Caterpillar Financial Services Corporation 2120 West End Avenue _ Nashville, TN 37203-0001 ~' Phone: (615)341-1000 FINANCE PROPOSAL KERB COUNTY Dealer: HOLT TEXAS, LTD. Sales person: KEN POWELL Quoted by: Dicki Sizemore Quote date: 12/19/2005 Quote #: QIPESD06038 This is Caterpillar Financial Services Corporation's confirmation of the following finance proposal. This is a proposal only and is subject to credit approval, execution of documentation, and execution and approval of the application survey. Terms Financing Type: Governmental Number of Payments: 60 Monthly Payments: Arreazs Aon Down Model Hams Qty Sale Price Payment New 420D FDP(4X4) 1000 1 72,285.00 0.00 Model Insutaztce New 420D FDP(4X4) 82.54 Good if: Acknowledged by: Feb-19-06 Funded by: Dec-31-OS Amount Financed Payment 72,285.00 976.99 Fixed Balloon Rate 27,360.00 5.3500 Payment w/Insmance 1,059.53 The estimate for insurance is provided through American Zurich lnsuranee Company and is not an offer to contract jor insurance. Condifions Sales/Use/Property taxes: Lessee's responsibility (May not be included in the above payment amount). Insurance: Insurance is the responsibility of the Borrower or Lessee. Physical damage coverage is required on all equipment whether financed or leased. On leased equipment, general Lability coverage, minimum $ 1,000,000 per occurrence is requued. Please note: 1) This finance proposal is acceptable only in its entirety and is subject to final credit approval by Caterpillar Financial Services Corporation.2) Equipment cannot be delivered until documents are executed by Caterpillar Financial Services Corporation.3) Equipment must reside in United States at all times. We appreciate the opportunity to provide you with a proposal for this transactio ~~F1$ CO(/,9T Gj~of ••~~'"'• Proposed by: Acknowledged by: oflljjf _L~-_ ~ q c Caterpillaz Financial Services Corporation d"~-.,. S~}:? MOLT, Austin • Corpus Christi • Dallas • Fort Worth • Laredo • Longview • North Dallas • San Antonio •Texarkana • Tyler • Vctoria • Waco • Weslaco 12-21-OS KERR COUN'T'Y ROAD & BRIDGE 4010 SAN ANTONIO HWY KERRVILLE,TX 78208 TO WHOM IT MAY CONCERN IF AFTER 60~ PAYMENT KERR COUNTY ELECTS NOT TO OWN CATERPILLAR 420D BACKHOE LOADER , HOLT CAT WILL PURCHASE BACKHOE LOADER FROM KERB COUNTY FOR $27,360.00 WHICH IS EQUAL TO BALLOON PAYMENT OWED CATERPILLAR FINANCIAL SERVICES . SIN ERELY, ~~~s-- NNETH E. POWELL HOLT CAT SALES (210) 508 5063 P.O. Box 207916 • San Antonio, TX 78220-7916 • (210) 648-1111 • FAX (2101648-0079 • holtcat.com ~ /. ~~,ir.fllar: (HIi l7c~1~;5 eY, . '12i22i'P995 '19:96 219-E48-8361 HOLT F"INr~hJCE F'r-1GE 02109 lilt:-~i-dUbJ 1R~bN HKH rf TBnnC3sCe, Inc. P. O~ BIL) BOND TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA Wartford, Connecticut 06183 Bond No. Bld Bond KNOW ALL MEN BY THESE PRESENTS, Thai we, HOLT CAT P.Q. BOX 207916 SAN ANTONIO. 7X 78220 es Prfncipal, hereinafter oagcd the Principal, and TRAVELERS CASUALTY ANp SURETY COMPANY OE AMERICA, of Hartford, ConneCtiCUG a corporation duly organized under the laws of the State of Connecticut, as Surety, hereinafter called the Surety, are held and firmly bound unto KERB COUNTY ROAD & BRIDGE 4010 SAN ANTONIO HWY KERRVILLE, TX 78028 as Obligee, hereinafter rolled the Ou!igea, In the sum afTen Percent of Amount Bid Dollars f 10% ), for the payment of which sum weft and truly to be made, the said Principal and fhe said Surety, bind oursely©s, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these pre8en(e. WHEREAS, the Principal has submitted a bid for ONE {1) CATERPILLAR 420p BACKHOE LOApER NnNr, 7H6REFORE, if Iha Obligee shell uccopC the brd of the Principal and the Princlpa7 shall enter into a Contract 4vith the Obligee in accordance with the terms of such bid, ar,d give such bond or bonds as may be specified in the bidding or Contract pocuments with good and sufficient surety far fhe faithful performance of such Contract and for the prompt payment of labor and material fumished in the proseculian thereof, or in the event of fhe failure of the Prlncfpal to enter such Contract and glue such bond or bonds, if the Principal shall pay to the Obiigea the difference not to exceed the penalty hereof between the amount specified in said bid and such larger amount for which the Obligee may in good faith contrect with another party to perform the work oovered by said bid, ihen this obligation shall Ice null and void, othefwise to remain in full farce and effect. Srgned and sealed this 22nd day of ~-~ ~ /Wilne9s) HEATH~~ 14'4-tn`ess` December 2005 TRAV~ SUALT/ ANr! SI IpFTY COMPANY OF ANfERICA r ARD C. R E ~ -~~~~^ (Attomey.ln-Far,) Priofod sn conp®rauon with ene American Irstttute of ArchitecEs (AIA) by Travelers Casualty and Surety company of Amsrtu. Th.~ iany t,ayp In this document conforms exactly to the languag9 used in AIA Document A310, February 1970 edition. s• tsea.o iC7.9r) HOLT FIFJ:+tJCE Fi;i3E sj"~~"~2g 12i22J2605 1l~:C~b 21[x-642-'~'~361 P. 03 Uc~.-et-~nea ivy-b HNH of IennCSSC4~ 1nc~ STPauL TRAVELERS 1Mt~ORTANT DISCI.QSURE NOTICE OF TERRORISM INSURANCE COVERAGE On Nav>?mber 26, 2002, President Bush signed intr3 favu th? Terrorism Risk Insurance Act of 2002 (the "Act"). The Act establishes a short-term program under which the Federal Government will share in the payment of covered losses caused by certain acts of international terrorism. We are providing you with this notice to inform you of the key features of the Act, and to let you know what Pffect, if any, the Act will have on your premium. Under the Act. insurers are required to provide coverage for certain lasses caused by international acts of terrorism as defined in the Act. The Act further provides that the Federal Government will pay a share of such losses. 5pecificafly, the Federal Government will pay 90°1° of the amount of covered losses caused by Certain acts of terrorism which is in excess of an insurer's statutorily established deductible for that year. The Act also caps the amount of terrorism-related losses for which the Federal Government or an insurer can be responsible at $100,000,000,000.00, provided that the insurer has met its deductible. Please note that passage of the Ac4 dues rrvt result In any change in coverage under the attached policy or bond (or the policy or bond being quoted), Please also note that no separate additional premium charge has been made for the terrorism coverage required by the Act. The premium charge that is allocable to SUCK coverage is inseparable from and imbedded in your overall premium, and is no more than one percent of your premium. CL7-10:3 (9.'04) HGLT FIf~li;t~lCE F':;~.iE 5~t~'6'3 1P/2`tr ~Ea05 L~:65 21b-54s~-2351 P.04 DEG-21-2005 14.58 HRH cf Tennessee, Inc. TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA TttAVELF.RC CASUAL7,'X AND 6t7RL7Y COMPANX FARM[NGTOPf CASUALTY COMPANY Hartford, Connecticut Oltg3-9061 POWER OF ATTORNF,Y AND CERTIFICATE OF AU'fI10RiTY OF ATTgRNE'Y(S}IN•FACT KNOW ALL PERSONS BY THESE PRESENTS, THAT TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA; TRAVELERS CAStIJAL'rY AND SURETY COMPANY and FARMINCCTON CASIIAI.TY 'COMPANY, corporations duly organized under the laws of the State of Connecticut, and having their principal offices in the City of Hartford, County of Hartford, State of Connecticut, (hereinafter the "Cornpanies'7 hash made, constituted and appointed, and do by these prta-euts make, wnstitute and. appoint: Richard C, Rose, Jeremy C. Rode, Janice FenoeU, of Knoxville, Tennessee, their true and las~fitl Attorney(s)-in-Fact, with fail power and authority hewby conferred to sign, execute and acknowledge, at any place writhin the United States. the following inctrntnent(s): by bisRtor sole signature and ace, arty and ail bonds, recogttizances, contracts e£ indeuulity, and other writings obligatory in rho nature of a bond, recognirance, or conditional undertaking and any and all consents incitScnt thereto and t0 bind the Companies, thereby as fatly and to the same extent as if fire same there signeA M tbtl duty authorized o$rcorc of iho Companies, and all the acts of said Attorney(s)-in-Felt, ptrtsttartt to the authority hCxeiA given, are herebq rati.Ged and co~nmed. This appointment 1s made under acrd by authority of the tb110Wiug Standing Resolutions of said COInpallicS, which Resolutioru' are now in full force and effect: v~r>:n That ate Chairman, rho I'residc,n, mty Vice Chairman, any Sxecutire Vice Prasidcn4 any Batton Wice President, any Vice president, any Second Vice President, the Treastuer, any Assistant Treasurer, Ure Corporate Secretary or any Assistant Stxretary may appoint Atiumeys-in-Face and Agents to act for and on behalf of [he company and may give such appointee such authority as his or ha certifuate of authority may pre~.ribe w sign with the Coarpmry's Dame and seal wits Ne Company's seal bonds, recognizanccs, contracts of indemnity, and otbor writings obligatory in the nature of a boiad, rocogttiZance, or conditional undertaking, and say of said officers ax the Hard of 77ixectota ai azry time may remove any such appointee and revoke the power given him or ben. VOTED: That dta Chairman, the President, any Vicc Cheitman, any Executive Vice Prssident, any Senior Vice president or any Vicc President may delegate all or any part of tha foregoing authority to one or tttorc officers or employees of this Company, provided that each such delegation is in writing and a coot/ tlret'eof is filed in the olTirx of dro 3earoWry. VpTiEb; Tbat any band, tecogaizance, contract of indemtity, or writing obligatory in the nature of a band, rewggizance, or conditional undertaking shall be valid and binding upon the Company when (s) signed by the Prosidcnt, say Vine Chaircaau, say Executive ViGC President, any senior Vice president or any Vicc President, an3' Second Vice President, the Treasurer, any Assistant Treastvcr, the Corporate Secretary or say Assistant Secretary and duly attested and scaled with the Company's seal by a Secretary or Assistant Secretary, or (G}duly executed (under seal, if requited} by one or more Attorneys-in-Fact and Agents prusvant rn tba power prssocibod.;n bin or hw ,~tificate or their certificates of authority or by ono or more Compatry offcers pursrant to a written delegation of authority. This Power of Attorney and Certificate of AutLostify is aFgneA and seated by tacaFmilc (mcc6anicat rrr printed) under and 6y autt-orny M ihC following Stand:ag Resofutiau voted by the Hoards of Directors of TRAVELERS CASUALTY AND SURETX COMPANY OF AMERICA, TRAVELERS CASUALTX AND SURETY COMPANY and FARMTNGTON CASUALTY COMPANY. which Resolntton is nets in fytl force and effect: VOSF;D: Thai the signature of each of the following affeers: president, any Ixacutive Vice president, any Senior Vice Prasidaat, ony vine President, nay Assistant Vicc Pecaidcnt, say 3ecrt:tary, any Assistant SecreWY, and the seat of the Company may be affixed try facsimile to arty power of attorney or to any ceRificaie relating dterto appointing Resident Vice Presidents, Resident Assistant Secretexies of Anorr,eys-in-Feet fm purposes only of executing and attesting bonds and undertakings and odttt writings obligatory in the move 4herenf; cad any such power of atrorlrty or aMiAraTe t>eariag euah facsimile sigrratarc or facsimile seal shall be valid and binding upon ale Company and any such power so executed end certified by such facsimile signature and facsimile seal shall be valid and binding upon the Companyrn the future with respect 4o any bond ar wndertaking to which it is attached. roz~si uatt~a 1222/2005 10:06 210-648-8361 HDLT FIIJANUE FADE 05l'09 DEG-21-2005 14 59 FIRN of Tennessee, inc. P. 05 LN WITNESS W1xEREOF, TRAVELERS CASUALTX ANTI SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SUTt>aTX COMT'ANY and FARMINGTON CACTTAI.TY C0113kANY have caused this instrument to be signed by their Senior Vice President and their corporate seals to be hereto affixed this 22nd day o£November, 2005. srnt5 of coxNecTlcuT }93. tlutford COUNTY OF I3ARTFORII pp,~ e`~w~\r AND pw `' ~~ ~ j ~ I_ y~ *~ ~aYd R w~ »r. TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA TRAVELERS CASUALTY AND SURETY COMPANY ' FARMAVGTON C.A,BUALTY COMPANX t3eorge W. Tltarnps;on senior Vlce President On this 22nd day of November, 2005 before me personally came GEORG)H; W. THOMPSAN to mr known, who, being by me duly sworn, did depose aad say' that helshe is Senior Vice President of TRAVELERS CASUALTY ANI1 SURETY COMPANY OP AMERICA, TRAVELERS CASUAI.TX ANU SURETY COMPANY and FARNfRVGTON CASUALTY COMPANY, the corporarinnr; drsorilxd in and which executed the above instrument; that he/she knows Ure seals of said corporations; that the seals affixed to the said instrument ere such corporate seals; and that helshe executed the said instrument on behalf o£ the corporations by anthoriry of, his/her office under the Standing Resolutions thereof. a ~e~rv:~e. C ~7~~t' ** My Commission expires June 30, 1006 Notary Public Marie C. Tetreault Ct?RTII'ICATP, I, the undersigned, Senior Vice President of 'T'RAVELERS CASUALTX AND SURETY C014TpANY OF AMERICA, TItA'4L+I,$RS CASUALTY A,ND SURETX COmkAtYY and FARMIlVGTON CASUALTY COMPANY, stock corporations of the State of Connecticut, DO IIEREHY CERTIFY that the foregoing and attached power of AttornCy and Ccttificate of Authority remains in full force and has not been revoked; aad fiutitetmorq that the Standing Rusolutions o£ the Bostds of Directory, as sec forth in we CeRi£tcate of Authority, are now in force, Signed and Sealed at the Home office of the Company, is the City of Iiarlford, State of Connecticut Dated this 22nd ~y ~ December ~ 20 O5, ~~AY ,*,,Tr ANDDp e~VA(J~ ~ h~l ~~ ~~ ~r 1 ~ f ~N a , N 13y r -- Nichoras Seminars Senior Vice PresidenC HOLT FIf4ANCH F'N~dE OEIr~9 1^i2;'i2c7F75 16~:0E 210-EaEHRHEof Tennessee, Inc. F.06 ~Ut~-Gi-GL~t~~ 140': (3~p BONC3 TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA HarHard, Connecticut 06183 KNOW ALE. MEN BY THESE PRESENTS, Bond No. Bid Bnnd That we, HOLT CAT P.O. SOX 207916 SAN ANTONIO, TX 78220 as Prtnoipal, hereinafter called the F'rincipat, and TRAVELERS CASUALTY ANU SUKE I Y (:OMPANY OF AMERICA, Of Ha7'tford, Connecticut, a corporation duty organized under the laws of the State of Connecticut, as Surety, ht;reinafter called the Surety, are held and firmly bouhd unto KERF7 CVUNTY Rt7AU & BRIDGE 4010 SAN ANTONIO HWY KERRVILLE, TX 78028 as Obligee, hereinafter ca{led the Obiigea, in the s,+m ofTPn Percent of Amount Bid DuUars ( 10°l0 ), for the payment of which sum woil and truly to be made, the said Principal and the said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, joinIly and severalty, firmly by these presents. WHEREAS, the Pr ncipal has submitted a bid for ONE (1) CATERPILLAR 420D BAGKHOE LGAU6Fi NOW, THEREFORE, if the Obligee shall accept the bid of the Principal and the Principal shall enter into a Contract with the Ubilgaa in accordance with the terms of such bid, and give such band or bonds as may be specified {n the bidding or Contract Documents with good and sufficient surety for the faithful performance of such Contract and for the prompt payment of labor and materidE furnished in the pros?cution th®raof, or in the event of the failure oT the Piit~rcipal to enter such Contract and give such band or bonds, if the Principal shall pay to the Obliged the difference not to exce9dthe penairy hereof between the amount specified fn said bid and such larger amount for which the Obliges may ;n good faith Contract with 3nnthftr p2rty to perform the Work covcrod by said bid, then this ubliyatiurt shall be null and Void, dthenruise to remain In full force and effect. Signed and soalad this 2.°nd day of Peceiabef 2005 U 7 vl, ~~ a ' ` ~_5~~~~~ lW r'i ~S {wmeas) ~yf ~~~ HEATHER KING ¢ny66) HOLT GAT ~~ ~` ( ndaoi) fS~n CO ta' (L of c~e2 _. (Ttn~} TRAVELERS CASUALTY AND SURkT MPANY OF AMERICA Rf H l7 C. ROS (AaarnayimFad) Prinewd In cooperation with the American InatltW[e of Art:hiCOCtS {A7A) pY TraVeler3Cia3udlty and Sur@ty Comparry of Amerfaa. 7tre language In this document conTarms oxactty to the Ignguage used fn AIA DooumentA310, February 9tJT0 edition. 5•^.889-0 ((17.97) PAGE 0,109 121^2212005 10:06 210-64 ~~IRI-h of Tennessee, Inc HOLT FII~Ii;hdCE P ~,~ pEC-21-2005 1459 srPau~. Tx~v~~.~Rs iMPt}RTANT biSCLOSURE NOTICE t7F 7EF2i:ORISM tNSURAI+iC~ COVEFiAG~ ~n November 26, 2002, President Bush signed into law the Terrorism Risk Insurance Act of 2002 (the "Act"). The Act establishes a short-term program under which the Federal Government will share in the payment of covered losses caused by certain acts of international terrorism. We are providing you with this notice to inform you of the key features of the Act, and to let you know what effect, if any, the Act will have on your premium. Under the Ack, insurers are required to provide coverage for certain losses caused by international acts of terrarisrrl as defined in the Act. The Act further provides that the Federal ravernment will pay a share of such losses. Specifically, the Federal Government wi11 pay 90% of the amount of covered losses caused by certain acts of terrorism which is In excess of an insurer's statutorily established deductible for that year- The Act also Caps the amount of terrorism-related losses for which the Federal Government or an insurer can be responsible at $106,000,000,000.00, pravided that the insurer has met its deductible. Pease note that passage of the Act does not result in any change in coverage under the attached policy ar bond (ar the policy or bond being quoted)- Please also note that no separate additional premium charge has been made far the terrorism coveraga required by the Act. The premium charge that is allocable to such coverage is inseparable from and imbedded in your overall premium, and is no mare than one percent of your premium. 1LT• 10:3 (9/04) F'NuE ©31Ct9 Hr~LT FINAi 1CE F. ,zG 1'2:'22i'~'~~a5 1GJ:06 21Ft-643-5261 _ -..,,._.,,4.. .~ 7RdVELERS CASUpd.TX AND SQB.ETY COMPANY OF AMERICA TRAVELERS CASUALTX AND SURSTX COMPANY F'AItM.II'PGTUN CASt7AL.TY COMPANY ' Hartford, Connecticut06183-9062 POWER OF ATTORNEY AND CERTIFICATE OF AUTf70R.t'fY OF ATT01~7C(S}-Ili FACT KNOW ALL PERSONS BY TDESE PRESENTS, THAT TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTX AND SURETY COM7[iANX and FARMIld(,TON CASUALTY COMPANY, corpprations duly organized under the laws of the State of Connectieut, and having their prinrapa! ot95ces in the City of Hartford, County of Flartfoxd, State of Connecticut, (hateinaftcr the "Companies") hath made, constituted sad appointed, and do by titwe pxescat9 snake, conatiivte and appoint: Richard C. Rase, Jet~etny G. Rose, Janice Fennell, 6f Knoxville, Tennessee, their tzue and lawful Attorney(s)-In-Fact, with full powez and authority hereby cont'erred to sign, execute and acknowledge, at any place within the United States, fire following instcumem(a): b5' lris/her sole signature and alt, arty and alt hdnda, rcco~}licaztf:es, contracts of indemnity, sad other writings obligatory in the ruiture oz a bond, trcogrdrance, or conditioned tindertaltiug and any and a21 consents Incident tltereto and to bind the Companies, thereby as fully and to the same extent ag if the satroe wnzn Signed by the drily authorirert otTicets of trio Companies, and all the acts of said Attorney(s)-in-Fact, pursuant w the authority heroin given, arc hezeby ratified tad confirmed. This appointment is made under and by authority of the following Branding RmrolUtions of acid Companies, which Resolutions are now in full £broc and offal: VOTET7: That the Chairman, the president, any Vice Chalnnaa, any Executive Vice President, any Senior Vice President, any Wise President, shy Second Vice Pmaident, trig Trcastucr, any Assistant Treastu~ee, the l:orporata Secretary ar any Assistant Secretory stay appoint Attorneys-in-Fact and Agnnty to act for end on tichalf of the company and tray give Such appointee shaft authority as his or lter CertiGeate of authority may Y~sa+ba to sign with the Company°s name and seal with ate Company's seal honor, zrtogniaspecs, cantra;ts of lndettwity, and other writittgs obligatory in the nafntM of n bond, rmo~,irwacc, or conaitirnaal Undertaking, and any of said ofTaers or the Board 4f Airectors at any time may rantove any sUCh appointee and raivokc ate power given ring: oY her. VOTED: That the Claeinnan, Che President, any Vica Ct+ainnexy any't;xecuhve Vice President, say 9ettior Vice ]'tasiden4 oz any VieC President may uelegate ail ar any part of the foregoing authority to one or tGOte officers or employees of this Company, provided chat each such delega+ion is of writing and a copy thereof is filed in Utc office of the Secretary. VnTE17: That any Lund, recagnizas+ce, contract vF indemnity, or writing obligatory in the astute of a basso, racognizaacd, or conditional underutking shall be vniid and binding upon'tlte Company when (a) signed by the President, any Vice Chaimtsn, w,y Executive V ter. Prssiden4 nny Sastior Vice Presidrnt dr any Vicc President, any Second Vied President, $c Trceswcr, eay Asataffint Tzeasuter, the Corlxrrate $aCSetary or any Asalrtant 3cv,etary and duly arrested and seated with. Oro Company's seal by a Secretary oc,Assiattmt SaxCtary, or (Y>) duly exeatntid (under soal, i£ required) by one ar snore Attorneys-in Fact and Agrnts ptusuant to tba power prescYibed in his dz hez Cartif'icate or their ccrtificatec nfn.uthoriry or by one a>x more Company officers ptusuant to a written dc)eaat;nn of author,ty. This Power of Attorney and CertiCtcatc of Authority is signed and scaled by facaimilc (mtcchanica! or printed) under artd by authotty of the following Standing Resolution ~roted by the Boards of Dlrcctora of T'it:AVELERS CASUALTY AND SDTiETX COMYAIV'X OF AlvI.ERICA, TRAVELERS CA5TIALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, which Resolution ie now in'fuU force sad effect: v0'l'PD: That the signaaue of each of the following officers: president, any Executive Vice President, any Setuor Vies Presitlen4 any Viae President, any Assistont Vice President, any Secretary, say Assistant 9ecreury, and the seat of the Crnnpany may T,e atS9xCd by 1aC51rntie to any pou~cr of attorney oY to any nertificste rclsting dmreta appointing Resident Vice J.'residants, Resident Assistant 3scretaries or Attozrteys-in~Fact for purposes only of executing and attesting beads and undertakings sad othu writings obligatoryy in the nattae thereof, and any such power of attorney or certificate. lxaring such facsimile signature or thcaimile seal sha[I be valid and hording upcat the Cornpauy an3 nary such power so executed and cerdtied by such faasim;te sigtfature and facvi~z~ie seal shall be valid and binding upon the Compatty in the furore with respect to any bond ar undetialdetg to which it is attached. (n2nt) t7d:mitN 12;2^;'2E~05 16:08 21~~-548-~?361 HOLT FIYJANCE l.~t,_-cl-G~~~J 14=J7 FtKH of enneS6eC, tnC~ F'AD'E 0y%k1'~ F, es IN WITNESS WBEREOF~ TRAVELERS CASUALTY ANA SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANX and FARMINGTON CASUALTY COMPANX have ceased this iasvYUaeat to be signed by their 9eolor Vice President sad their cp1[pprate seals to UC Itercto affixed this 22nd day OI Nmembcr, 2005. sT~TC or coNNtrcTlcvT }SS. Hartford COUNTY OF HARTFORD ~. ,pC`°vY 9,n tY AMek C~S~ J ~ w~ . ~w ~ ~rPnRG, + ~ t9iZ a a, „a . „ ~~~~ TRAVF,I.I';tts (:ASUAI,TX AND SURETk' COMPANY OF AMERICA TRAVELERS CASUALTI" AND SURETY COMPANX FARMINGTON CASUALTY COMPANY BY "ize/~.~~J ...,. George W. Thompson Senior Vice Presldettt On this 22nd day of November, 2005 before me persoaalIy came GEORGE W. THOMPSON to me known, who, being by me duty sworn, did depose and say: that helsltc is Senior wee President of TRAVF.i.F,RS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANX wad FARMINGTON CASUAI.TX COMPANY, the corporations described in wad which executed the above instrument; that helshe knows tha seals of said corporations; that the seals nffixcd to the said instrument ar¢ each corpomtc seals; and that he/she ea~ecuted the said tasiNitlCnt on behalf Ot the WtpOrations by amhoriry of his/her office under the Standing Resolutions thereof. ,~4 * * * \OJ1J~.+t- C. MY COmmisBion expires Juna 3Q, 2008 Notary Public Mahe C. Tetreault CERTIFICATE 1, the undersigned, Senior Vice President of TRAVELERS CASUALTY ANA SURETY COMPANY qF AMERICA, TRAVELERS CASUALTY AND SIIRETY COMPANY and FARMllVGTON CASUALTY COMPANY, stock wrporations of the State of Cannecticrd, TSO H&R1;9X CERTIFY that the foregoing and anachcd POwcr oI Anomey and C ertiScate of Authority remains in full force and has not bcen revoked; and furtbertnorc, that the Sanding Resolutions of the Boards of Dirixiors, as set forth in the Certificate of Authority, arc wow in force. Signed artd Sealed at the Home Office of the Comparry, in the City of Hartford, State of Connecticut. Dated this 22nd 'day of December , 20 0$ .~ ~ ^aii 0~~ycY ~yeJ W4 la i MAnrrrlac, ~ d t9a1 7~ GPNN. c 9 ' h'~ 'pY~ Y „ A ay Nlctsolas Seminara Senior Vita president Tp7Al~ P.06 CATERPILLAR FINANCIAL SERVICES CORPORATION Reference: We are requesting a copy of the minutes of the funds for this deal were allocated. A copy of this information is necessary fund the deal. Your ability to retuc k Y ' Thank you during which the' kage and to payment to CATERPILLi~Ifi I~NCIAL SERVICES CORPORATION Physical Damaee Insurance Covera¢e Information (Customer Coov) Before financing yow equipment, you must arrange physical damage insurance on the equipment identified below. The inswance may be provided through an inswance agent or inswance compatry of yow choice, provided the insurance company satisfies minimum financial requirements. As an alternative to obtaining yow own insurance, you may elect to have yow equipment inswed under coverage arranged by Cazerpiltaz htswance Services Corporation that has beet[ designed specifically for the pwchasers of Caterpillar equipmett and issued to yow Caterpillaz Dealer and Caterpillaz Financial Services Corporation by Caterpillar Insurance Compatry. I hweby request and apply for information and a quote for physical damage insurance from Caterpillaz htswance Services Corporation for the following equipment in the following manner: Model # Equipmem Description t " Value°."'~^~~ Pymt Medtad• 1 Pymt Method-2 B. c. D. anon azr Authorized Inswance Producer Policy Summary Please note: This is only a brief description of the Physical Damage Program. Contractual provisions wntalned in the policy will govern. Covera¢e Caterpillaz Physical Damage Inswance protects yow equipment against physical damage losses, including collision, fire, then, vandalism, upset or overturn, floods, sinking, earthquakes and other unfornmate acts of naive. The protection has been designed for owners of heavy equipment and provides superior benefits you most likely would not find in other plans. The Caterpillar Physical Damage Inswance does include normal exclusions. The exclusions included aze weaz and tear, rust, loss of income, contamination, improper repairs, waz, nucleaz damage, and mechanical breakdown, property damage liability, automobiles, watercraft, waterborne shipments, tires or tubes damaged by blow-out, puncture, and road damage. Repairs When a covered loss occws, this plan will pay for Caterpillaz replacement parts on all yow new or used Caterpillaz equipment. On all non-Caterpillaz equipment, dte plan will pay for comparable replacement parts. Foem No. C[SCICSF-1/04 Rdw Cade Transuortation Your Caterpillar plan will pay for round-trip transportation of covered damaged equipment to and from your Caterpillaz dealer's repair facility, up to $2,500 limit. Rental The plan allows for rental costs up to $2,500 that you incw to rent similar equipment following a wvered loss. You aze automatically protected with up to $100,000 of coverage for damage to the similaz equipment you rent. laims In the event of a total loss, the policy will pay the greatest of the following: - The payoff value of the loan on the damaged parts or equipment as of the date of loss - The actual cash value of that covered properly; or - The cost of replacing that property with properly of like kind and quality; or The policy witl pay 10% of scheduled loss, up to a $10,000 maximum for debris removal. the policy will pay fire department service fees up to $5,000. Deductible $1,000 Constnrction and Agricultural Equipment $10,000 deductible all logging Equipment If you have arty q 1-806.245-4228. ;your Authoi'fzed Cat Dealer or call Cat Insurance toll free at at Cat Instuarlce@cat.com POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE Your policy provides or, if this notice is being provided in connection with an offer of new or renewal coverage, would provide coverage for acts of terrorism subject to all terms, crnlditions and limitations of your policy. You should know that under your existing or proposed coverage, any losses caused by certified "acts of terrorism" as defined in Section 102(1) of the Terrorism Risk Insurance Act of 2002 (the Ad), are partially reimbursed by the United States of America. The term `act of terrorism" means any act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State, and the Attorney General of the United States - to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United Stares, or outside the United States in the case of an air carrier or vessel or the premises of a United States mission; and to have been committed by an individual or individuals acting on behalf of arty foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or aff~;[ the conduct of the United States Government by coercion. As provided for in the Act, the United States of America pays 90 percent of the covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. the premium for this coverage shown below does not include any charges for the portion of loss covered by the federal government under the Act. The portion of your premium that is attributable to coverage for terrorist acts certified under the Act is: $ None. For any policies and renewals issued on or after Febmazy 24, 2003, the above disclosure, modified to reflect your purchase of coverage, will beset forth m an endorsement to your policy. Fo,m No. CISCICSF-1/04 Deeltt COde APPLICATION FOR PIIYSICAL DAMAGE INSURANCE COVERAGE (Return with Equipment Documents) Model # Equipmem Description Value Pym1: Method-1 Pymt Method-2 Serial # Including Tax Total Premium Finance Pymt A. B. C. D. Sharon Blair, Authorized Insurance Producer Option A Arranged by Caterpillar Iusurauce Services Corporation Carerpillar7nsarance Services Corporation will receive compensation jrom Caterpillarlnsuraace Coinparry wiJr placement ojcavemge I understand that the total insurance premium for _ months will be $ which is $ per yeaz based upon the total equipment value of $ Method 1 ^ I will finance the insurance premium, including finance charges, of $ per scheduled equipment payment The finance charge is calculated m % per annum on the total insurance premium covering the fiill term of the fmance agreement. ~'`~'. Method 2 ^ I desire coverage for an initial 12 month teen. I wri(,p,1y tote $ -; ~pt'smium and re[um the payment with the signed equipment documents. Please sjt~clc'I'abl~`~~~laz Insurance Company. Method 3 ^ I will pay the total premium +8td~ the p~rrr~pt~wi~ the lid flent documents. Please make Iunderstandthatthe tay~l•;r~cpivetsnptgb#tdgr~ripnG~,Jfk,~l~cttoobtaincoveragefromCaterpillaz Insurance Services Co ~ ~ e0ye~it"ib$e'e~fgctige•-tt accord~pi~;with the terms and conditions of the issued Policy and that I may remittate•~tt$~graragejilj~~iine with advance`written notice. ter, ., I acknowledge that I havb`b~tttoti~ied Fiat, under the TERRORISM R[SK INSURANCE ACT of 2002, any losses caused by certified acts of fex~'sm under my policy will result in coverage under my policy ¢hat will be partially reimbursed try ffie United States as oudined in the attached policyholder disclosure notificarion. Customer Name: Dealer Name: Fraud warnme: All states other them OH, VA, LA, NE, Oly OR, or VT, Any person who knowingly and with intent to defaud any insurance company or other person fdes an application for insurance or statement of claim containing any materially false imormatioq or wnceals for the purpose of misleading, information concerning any fact materiel dnere[o, commits a fiaudWeot insurance ac; which is a crime e~ shall also be subject to a civil peoalties. (In DC, ME, and TN, iusmaoce beacfits may also he denied.) In OH Any person who, with intent to defraud or knowing that he is faciitating a fraud against an insurer, submits an application or fdea a claim containing a false or deceptive statement is guilty of insurance fraud. In VA: It is a crime m knowingly provide false, ircomple[e a misleading infonmtion [o an insureoce company for the purpose of defmnding the company. Penalties include imprisonment fines and denial of inswance benefits. Please note: Tf you Lave say questions or reed additional details, please contour 1-800.248-422& In additioq if you would like a no obligation quote on your additional equipment, call Shazon Blair a[ 1500-248-4228 ext 8121. Accepted By: Title: Prim Name: Fo,m No. CISCIC9F-0/06 peels Cadc Option B I elect to obtain my own commercial insurance on the equipment shown below from the folbwing agent and insurance compmy. I umkrstand that We processing of this tr~nnsadion can 6e held pend'mg receipt and verification of this information. Customer's Name Address Cdy Dealer Name _ State Zip Date I have entered into the above agreement under which I am responsible for providing insurance against ALL RISKS of tlirect physical loss or damage forthe actual cash value of the following equipment, subject to common exclusions such as damage caused by corrosion, rust, mechanical or electrical breakdown, etc. Model # 0. D. Value Including Tax TO CUSTOMER'S INSURANCE AGENT I hereby instruct you to add Caterpillar Financial Services Corporation as a loss payee: [ ] 7o my existing policy number ,which now provides the coverage required, or [ ] To a policy which you are authored to issue in the name listed above which will provide the coverage required. Caterpillar Financial Services Corp must 6e given written notice within 30 days of any cancellation or non-renewal. It is also understood and agreed that a breach of the insuring conditions by the customer, or any other person shall not invalidate the insurance to Caterpillar Financial Services Corporation. Print Name Customer Signature Date PROCESSING OF THIS TRANSACTION CAN BE HELD PENDING RECEIPT OF THIS INFORA9ATION. PLEASE FORWARD A COPY OF THE CERTIFICATE OR BINDER EVIDENCING COVERAGE TO: CATERPILLAR FINANCIAL SERVICES CORPORATION 2120 West End Avenue Nashvibe, TN 37203 Fax # PLEASE ATTACH A COPY OF THiS NOTICE TO PROOF OF INSURANCE Fond No_ CISCIC3F-1/04 Deela Coda CATERPILLAR FINANCIAL SERVICES CORPORATION LESSEE: ADDRESS. LESSOR. ADDRESS: LONG-TERM RENTAL AGREEMENT Dated as of CATE'RPR.T.AR FINANCIAL SERVICES CORPORATION Lessor, in reliance on Lessee's selection of the equipment described below ("Unit" or "Unit(s)"), agrees to acquire and lease the Units to Lessee, and Lessee agrees to ]ease the Units from Lessor, subject to the terms and conditions below and on the following page(s): ltiatr lion nffiniNwl MBBW$RCOI R.rrhsse Dr:re (1)USED 4368 Cateryillar BACKHOE LOADER 6M100218 Rent to be pdd: in arrears (starts one month after Delivery Date) and every month Leese Term: Months Purchase Options: [~ Cat VaWe Lacatiop of Unt(s): DepteciaBon Period: Lessor shall be ADDTTIONAL PROVISIONS: (check one) rmit based on a recovery period of _(n/a)_ years. RIDERS: TERMS AND CONDTTIONS OF LEASE 1. LEASE TERM: The Lease term for each Uvit shall start on its Delivery Date (the date (a) Lessor ezeaams this Lease. (b) Lessor rakes tide to the Unit, or (c) Lessce or its hem takes cwtrol or physical possession of Ma Unit, whichever is latest), provided the Delivery Dam is on or before the utilization date stated above, and shill continue for the number of months smmd above. If the Delivery Dam is not on or before the utilization dam, Lessee shall, at the option of Lessor, assume Lessor's obligations m purchase and pay for the Unit. Lessee shall execum and send Lessors Delivery Supplemem to Lessor promptly after delivery of a Unit. 2. RENT: Lesser shall pay m Leasm, at or such athm Torsion Lessor designates in writi~, rant for each Uvit as sorted above starting (a) on its Dehvery Date if the rem is to be paid m advavce, m (b) ono month (or other period as stemd above) after im Delivery Dare if the rent is m 6e paid iv arrears. P.v amoum equal m the first rear payment for each Unit must accompa~ this docmnent when it is mbmitted m Lessor. If Lessor ezecums this documem, the amount shall be the first rent payment If Lessor does not execum this document, the amount shell be remmed to Lessec. If Lessor does not receive a rent payment w the data it is due, Lessee shall pay to Lessoq ov demand, a late payment charge equal to five percevt (5°ro) of the rent payrvem no[ paid when due or the highest charge allowed by law, whichever is less. N addidm b aU other amomtta Mat Lessee ta required to pay hereunder, Lessee aclutowkdges aril aBrea tluk mbject N Me tetras hereof, I.msee shag pay ~ rues, irtdodhtg all Perwnal Property Toes, attdng ham a due H cauteatian with, tlM Leese ud/or the Unit(a} l.esaee furtlmr aegtowkdgea std ageea Mat if ieawr payer any milt dare Lessee shaD Promptly re®burae If~lt"PsErogtask('~ pJia~Nd>Liuk~d~r rents, plus all othm amounts then owaug a~ r " & 9r 't!m Aggr¢S`e)eagµ0s>gtpp case detarmeved by Lessen az Leax recap[ion~~p^IUS'al~y'~tu0bthCq RY4}ng~-&Ed and Lessor shell h entitled ro possession of ti(xUb"t LAIC slf~`bY ro any Casualty Value pad by Lessce. ~ .,,. ..._' g~I,t,, Yry govervmenml action m, iv Lessor s opinion. gpte 9(mii~ve Lessor prompt notice of a CssunlTy Ocerarence or other fy- sfoW the Unit m the condition enquired by Section 5. [f a Casualty ~ua m ih lessen of (a) the rota gross value of all rents originally due procedures) as ofthc date of the Casualty Occurtence plus rrv pest due rs the Unit's projected Farc Market Value (at the end ofthe lease term) as s peymevS the term of this Lease with respect ro the Unit shall tenanete insmnvice or oWerwix m the extern it does not exceed the amount of the 9. WAIVER AND INDEMNITY: LESSEE HEREBY AGREES TO RELEASE, DEFEND, INDEMNIFY AND HOLD HARMLESS LESSOR TTS DH2ECTORS, OFFICERS, EMPLOYEES, AGENTS AND ASSIGNS FROM AND AGAINST ANY CLAIMS OF LESSEE OR THIRD PARTIES, INCLUDING CLAIMS BASED UPON B12EACH OF CONTRACT, BREACH OF WARRANTY, PERSONAL INJURY, PROPERTY DAMAGE, STRICT LIABH.ITY OR NEGLIGENCE, FOR ANY LOSS, DAMAGE OR WJURY CAUSED BY OR RELATING TO THE DESIGN, MANUFACTURE, SELECTION, DELNER'F, CONDTTION, OPERATION, USE, OWNERSHIP, MAINTENANCE OR REPAIR OF ANY UNIT. FURTHER LESSEE AGREES TO BE RESPONSIBLE FOR ALL COSTS AND EXPENSES, INCLUDING REASONABLE ATTORNEYS' FEES, INCURRED BY LESSOR OR TTS DDtECLORS, OFFICERS, EMPLOYEES, AGENTS AND ASSIGNS IN DEFENDING SUCH CLAIMS OR IN ENFORCING THIS PROVISION. UNDER NO CONDITION OR CAUSE OF ACTION SHALL LESSOR BE LIABLE FOR ANY LOSS OF ACTUAL OR ANTICH'ATED BUSINESS OR PROFITS OR ANY SPEC WL, INDIRECT OR CONSEQUENTIAL DAMItGES 10. INSURANCE: Lessee, at its expense, shall keep each Unit insured for the hvefit of Lessen against ell risks for not less than its Cssuaity Value and shall maman comprehensive public liability inswavce (ivcltdivg product and broad form contrecara liability) coverne the Uai for rot Iws than $1,000,000 combined coverage for bodily injury and property damage. All insurance shall be iv a form and with companies as Lessor shall approve, shall specify Lessor and Lessee as named insuroda shall h primary, without the right of conhibudon from arty other insurance carried by Lessor, and shat provide that the insurance may not h cmteWed or altered x es to effect the interest of Lessor without at least ten (10) days' prior written notice m lessor. All insurance covering loss or damage m a Unit shall name Lessor as Iws payce. Lessee shall not make edjusmtents with imurem except with Lessors prior written waxer and hereby i[revombly appoints Lessor e9 Lesxe's attorney-io-fact ro receive payment of and m endorse all checks, drabs end other documents and ro 18ke any older actions neccssery m pursue insurance claims and recover peymrrb of Lessee fails to do so. Lessw shall prompdy ratify Lessor of any occurrence which may become the basis of a claim and shall provide Lessor with ell requested pertinent data. Lessee shall pmmpdy deliver to Lesxr evidence of such insurevice wvertage. 11. EVENTS OF DEFAULT: Fech of the following covstiMes rr event of defaWt ("Event of Default"}. (a) Lessce fails to make any paymem whey due; (b) any reprexvfation or warranty ro Lwxr which is incorrect or mislwding; (c) Lessee fats ro observe or perform any wvenent, agreement or wmrtanty made by Lessee and the failure condnuw for ten (!0) days after written notice ro Lessee; (d) any defaWt occurs under soy outer agreement between Lesxe and Lessor or any' affiliate of Lessor, (e) Lesxe or rry guerentor of this Lease ceases m do business, becomes inxlvent, makes en assignment for the hcefit of creditoro or 51es any petition or ikon carder any baokrupmy, reorganization, ensolvency or moratorium Iaw, or arty other Iaw or laws for the relief of, or relating ro, debtors; (~ filing of en involuntary petition under any benkrnptcy smmte agavst Lessee or any guarenmr of this Leax, or appoivtmem of a receiver, trustee, cusmdian or simelm official m take posxssion of the properties of Lwsce or any guaravror of this Lwx. unless the petition or appointment ".° ." ro h in effect within thirty (30) days after Sling or appoWtmentl and (g) breach or repWiatiov ofa guatrrty obtained by Lessor iv conttction with skis Lease. 12. REMEDIES: ]fan Event of Default occurs, Lesxr may (a) proceed by court action to enforce performmce by Lessee of the covenants of this Lwx or m recover damages for Char broach m (b) by notice in writing to Lessce terrinam this Lear, in which event ell rights of Lessee ro use a Unit shall temtirrm, but Lessee shell remain liable es provided herein end Lessor may do any om or mom of the following: (i) require Lessee ro return each Unit pursuant ro Section 13; (ii) enter the pramexs where any Uat may h end rake possession of it withom notice, lialriliry or Iega process, (iii) recover from Lessee (whether or not Lessor takes posawaiom ofUWQ all amorrm dm or eccrtred on the date of termimtioq (iv) recover as damages for loss of bargee and no[ es a pevary a sum equal to the Cwuelty Value of a Unit; and (v) ecovm a°S' other damages imcurred by Lessor bweux of the brexh of any covevm[, reprexnmtion or wmranty other than payment of ant. If an Even[ of DefaW[ occurs and Lessw returns Usti[ purstram to Section 13, Lessor shall undertake commereialy reasonable efforts m sell or re-leax it and the proceeds of aoY sale or re-lease shall fie applied iv the following ordv. (a) m reimburse Lessor for ell expenses of refakm6. holding, preparing for solo or re-bex sad xlEng or re-leaang the Unit, including any razes, charges, casts. expenses and reasonable attorney's fees incurred by Lessor, (b) ro peY Lessor WI amomts which under the corms of this Lease nee due or have acerued w of the date of Lwsofs receipt of the proceeds; and (c) b reimbwse Lessw for any sums previously paid ro Lessor as damages for Toss of bargain. Auy surplus shall be remined by Lesxr to the a#ent partnitced by law. Lessee shell promptly pay any defciancy m Lessor. Lwsce acknowledges that sale of a Unit ro e wholesaler, retaler or user for cash or credit are all commereialy reaonable. Lessee agrees m pay all charges, costa ezpenxs end reasonable atromey's fees incurred by Lesxr m emforeing this Lease. The remedies provided m Lessor shell h cumWative and shall h iv addition m WI other remedies existing et Iaw or in equety. [f Lesxe fails m perform my of its obligations mdcr this Leax. Lessor may perform the obligatiws, and the expevxs incuved by Lessor as a result shall bempvYtlble by L~easee upon demand. 13. RETURN OF UNIT: Upon expiration of the term of this Lease or if Lessor shall rightfWly demand possession ofa Unit Lessee, at its expense, shall promptly deliver possession of the Unit m Lessor, properly protceted rail in the coMition regal red by Section 5, m the option of Lessor, (a) to the premises of the nearest Cateryillar dealer selling equipment of the same type as the Uni; or (b) ov board a ramm named by Lessor and shippng i; freight collect m the destination desigated by Lessor. H the Unit ie rat m the condition squired by Section 5. Lessee shell pay to Lessor, on dammd all costs and expenses incurred by Lessor m bring the Uvit into We required mvdilion. 13. CAT VALUE OPTION: If Ca[ Value Option has bcen checked and if no Event of Default shall have oceurted rail be continuing. Lessee may. by notice delivered io Lessor not lass th® silly (60) days prior m the end ofthe am of the Lease, elect m purchase the Unit at the end of the tam for the Purchase Price. Lessor rail Lessee agree the Pushase Price is a reesomble estimam of the Fen Market Value of the Unit at the end of the rem. Upon receipt of the Pushase Price, plus mY taxes due in u>mcetim with the sale of the Uni; Lessor shill deliven b Lessce, upon reques; a bill of Bale without wananties except 16a[ the Unit is free of ell encumbances of any parson claiming through the Lessor. Lessee shell purchase the Unit "A3IS, WHERE IS, WITH ALL FAULTS." ]5. FAIIt MARKET VALUE OPTION: If Fair Market Value (FMV) is checked: If uo Event of Default shell have occurred and be continuing. Lessee may, by notice delivered to Lessor rat less than siz (S) months prior m the evil ofthe tam of the (ease of a Uni; elcet m purchase it AS IS, NHEBE IS, WCI'H ALL 1FAULTS, for a purchase price equal io the thcn Fair Market VWce of the Uvit. Fair Mmket Value is the amomt which world be obtained iv m arm's length trmsection between m informed rail willing buyer radar m compWsion to buy (other then a used equipment denier or a buyer currently in possession) and m infomed and willing seller under no compWsion to sell and in the determination thereof, cosh of removal from the corset location shall not he a deduction from such value. If Lessor and Lessee have rat agreed upon the Fair Mmket Value of the Unit fora (4) months prior m the evil of the term, Lessee shall either (a) rescind the eleMion m purchase i; or (b) apply to the American Arbitration Association for appointment of m appaiser with instructions m determice its Fair Market Value within thirty (30) days after his appoinmteM evil communicate Uw demminetion m writing m lessor and Lessee. The determination shall fie conclusively binding upon Lessor and Lessee. The expenses and Sees of the appraiser shill fie paid by Lessee. Upon receipt of the purchase price, des mY taxes due in mmcetim with the sale of the Uni; Lessor shell deliver m Lessee upon request a bill of sale without wartenties except that fire UWt is frce of WI encumbrances of any person claiming through Lessor. Failure of Lessee to apply for appointment of m appaiser shall fie deemed a rescission of the elcetim to purehese the Unit. 14 LESSEE ASSURANCES AND REPRESENTATIONS: Lessee and Le~or intend Wet this Lease shut Unit(s) shall remain m Lessen rail Lessee shall not acquire any inmrest is [he Uni(s) other than the leasehold sceurity interest in iha Unit(s) a~ WI rephtcemams or substitutions therefor, and any proceeds therefirom, in for the payment and perfomance by Lessee of WI its obligations under this Lease in the even[ a wur(.o$!ac ivmres[ m the Unit(s). ~ , Lessee shall, at its expense, do mY sa and ezceute, ackmwledge, deliver, or rights iv a Unit rail Lessols rights and be9pQer this Lmse,._Lyesve e~ authorizes Lessor to delegate these hmtla0` ptbt~,~ , '~; .'s, Ieasa" of the Unit(sJ, and eat a ale of We Unit(s). Title m the m"oin. Nevertheless, Lnsce herby gmrts m Lessor a I(m1Y@yd~'~~~~~~p_ro~ceeds in the fora of chattel paper as security rrcrer'W rnea that Lessee rail Lessor created a xcuriTy able in its discretion m protect Lessor's title for the signing rail filing of such documents Lessor represents and wmavts m Lessor t1i~G{ar~`[,idapy~s $YE pgWgp#v er`~erfvi~h~€il~v Lease, (b) the person executing all delivering *liis Lease is authorized to do so on behalf of Lessee, rail (c) this Lease~aL'4~rd ~nst~ ~ag~~binding upon)-ffiatd enfoseabla in aceordance weth its terns. Lessee shall, during the lease term, display in a promwen[ place ov the Umt faTfW3'1 `::"Ljtgad(~ `Thrd'tlte Unit is leased froYti Lessor. Lessee further repssenb; and warrand to Lessor that Lessee is evil shall reman ("Bu®cess Locstion) and Lessrpwt"illnot~tpir~e ' ~rr$b usness orgmnation m Busrvess Locatim without prior written notice m Lessor. c;. 17. ASSIGNMENT; COUNTERPARTS: The il¢S{gyEE'essor mderthis Lease and tide m the Unit may be assigned by Lessor at my time. ff notiSed by Lessor, Lessce shall make all paymenb due under this Lease to the party denigrated in the entice without offset or deduction. No assigmnent of fhis Lease or my right or obligatim miler it maybe made by Lessee without the pion written eovsent of Lessor This Lease shall be binding upon rail benefit Lessor and Lessee and their respective suceesson~ rail assigns. If this Lease is assigned by Lessor m a paMership or tens; the mrm "Lessor" shall thenceforth meen rail include the partnership or trust evil shell also include, for pu[poses of Sections 4, 5, 8, 9, rail 10, each partner in or becefrciary of the partnership or trust AlUwugh multiple counterparts of this document may be sigmd only the comfarpnrt ecceptrd, acknowledged rail certiSed by Gteryillm Financial Services Corpoatim on Ure siQoemre page Utemofas the original will constitute original chattel paper. 18. EFFECT OF WAIVER; ENTIRE AGREEMENT; MODIFICATION OF LEASE; NOTICES: A delay or omission by Lessor to exercise any right or amedy shall not impair any right or remedy rail shall not be wns[nuxl as a waver of any breach or defaWt. Any waiver or consent by Lessor must be in writing. Tltis Leese completely states the rights of Lessor rail Lessee and supersedes alI prior agreements with aspect m a Unit. No variation or modification of this Leese shall be valid users in writing. All entices shall fie in writing, addressed to the othn petty at the address stored m the from or m sceh other address es may hereaBer be famished in writing. This Agreement shell be governed by and construed updm the laws of the State of Tencessce, without giving effect m the conflict-of--laws principles [hereof, end Lessce hereby mvsevts m the jurisdiction of my state or federal evert loaned within the Stale of 7ennessce. THE PARTIES HERETO HEREBY WAIVE THE RIGHT TO TRIAL BY RfRY [N ANY ACTION ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OBLIGATIONS OR THE COLLATERAL. 19. SEVERABILITY; SURVIVAL OF COVENANTS: If any provision of this Lease shall be invalid under any law, it shall be deemed mnitted but the revravivg provisions hereof shall be given effect. All obligations of Lessee mdw this Lease shall survive the expiation or temrinatiov of this Lease b the extent required for their full observmce rail porfommce. Lessee: Lessor: CATERPILLAR FINANCIAL SERVICES CORPORATION 13r Name (PRAI'I') Title I)ete By Nerve (PRIITL) Title Date m ,.w.w.e,a.w3.~-r NON-APPROPRIATIONS ADDENDUM to LONGTERM RENTAL AGREEMENT between CATERPILLAR FINANCIAL SERVICES CORPORATION and DATED AS OF Lessor and Lessee hereby agree to add the following provision to the Lease, and further srcknowledge that all terms contained herein aze to be defned according to the provisions of the Lease: Lessee represents and warrants to Lessor that Lessee has sufficiem appropriations or othEK funds available to pay all amounts due hereunder for the current fiscal year and reasonably believes that fiords 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 }+~t5h the rental payments may be made, including malting provision for such payments to the extent nei~,~8ry i~t:tdget submitted for the purpose of obtaining funding and using its bona fide best efforts to''#Ya~~ shpo of the budget approved. It is Lessee's intent to make remal payments for :~lt't~nwftlti4kq~Nytf~rnds are available therefor and in that regard Lessee represents that the,use of ii~~~e~sr~tiiylto.~,ee's proper, efficient and economrc operation In the ev Qt'$n.cie~t fiarpl8 2qe f6j~Iated and budgeted or are o~iot avn)86~'n~fl~e~~1 }gatt9l„~sy~a~ue under this Lease, then Lessee will imme#elyRit~fy )»e~Sf~,,~S~tt}c~ec`~8it{l~+fe..'~B,E..~ti'e shall terminate on the last day of the fiscal year for~vhlc#.ap~rop~raAOr~ wlrr$t?t/r~ts p~at#lY or expense to Lessee for any kind whatsoever, except,~af5ri~7~~ptjrtie~f~txaas++gFsl~~nf° herein a~e0d upon for w}uch funds shall have bean appropriated au3"bbdg qr '~th~};vise dvailable. Subse3juent to a termination of this lease, Lessee shall have no tt`6~~Yxo`mltje'iemal payments with respect to the remainder of the Lease. In the event of such temvnat ee agrees to return the Units to Lessor pursuant to Section 13 of this Lease, and Lessor shall have aIl"Iegal and equitable rights and remedies to take possession of the Units. Notwithstanding the foregoing, Lessee agrees that to the extent pemutted by law, it will not (a) cancel this Lease under the terms of this Addendum if arty funds are appropriated to it, or by it, for the acquisition, retention or operation of the Units or other equipment perfomrittg functions similar to the Units for the fiscal yeaz in which such termination occurs or the next succeeding fiscal year thereafter, and (b) give priority in 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 pemilt Lessee to terminate this Lease in order to acquire any ottrer equipment or to allocate funds directly or indirectly to perform essentially the same applications for which the Units aze intended. LESSEE: LESSOR: BY: CATERPILLAR FINANCIAL SERVICES CORPORATION BY: _ TITLE: DATE: ATTACHMENT A ACCEPTANCE CERTII+ICATE This Acceptance Certificate is executed and delivered by ("Lessee"} in connection with the Crovemmernal Equipment Lease-Purchase Agreement dated as of (the "Agreement"), between Lessee and Caterpllar Financial Services Corporation ("Lessor"). Lessee hereby certifies that: I. Capitalized terms used herein and not defined herein shall have the meanings assigned to them in the Agreement. 2. The Equipment: has been delivered to it, and has been inspected by it, and is m good working order and condition and is of the size, design, capacity and manufacture selected by it and meets the provisions of the purchase orders with respect thereto. Lessee hereby confirms it iaevocably accepts said items of Equipment "as-is, where-is" for all purposes of the Agreement as of the Acceptance Daze set forth below 3 4. D Lessee: Signature: BS' Print Name Title: CATERPILLAR FINANCIAL SERVICES CORPORATION ("CFSC") CONSTRUCTION EQUIPMENT APPLICATION SURVEY Customer Name: Location: Page 1 of 2 Make: Number: Monthly Usage: Dealer Location: Current Hours: Dealer: Serial ***** IMPORTANT INFORMATION ***** RESJDUAL EXCEPTION REQUESTS must be submitted to the CFSC for the following applications: IarM/il6 transfer and recycling stations; demolition, scrap yards and eras/ mills; salt, chemical, and corrosive environments such as feed lots, dairy fauns, rendering plarrGS, mushroom farms, fertilizer and lime handling, saR water areas and all hazardous waste handgng; dusty or poor underfoot conditions; all underground mining applications. Any applications requiring unusual attachments, equipmerd momcations or have non-traditional use of the equipment. Any trensaction with five o~ more of one model. Please COMPLETE THE ENTIRE SURVEY for all transactions including arty of the above applications. tQdOR ATTACFn~. fIT3 rChenk all that annlvl: ^ 4 Wheel Drive ^ Sb Board ^ Padef Forks ^ Ian Rake ^ Convete Crasher ^ Au er ^ Tiller ^ Rotator ^ Metal Shear ^ Forks ^ Cab R~ ^ Arxess Pledonn ^ Snow Plow ^ Ride Control ^ Lon Reach Stick ^ Oetimber ^ Bbck Forks ^ T Clam ^ Saw Hwd ^ Mower ^ Generator ^ Cold Planer ^ Atr Conditioner - ':~ Solid Tees ^ ^ Lumber Fake ^ E-Stick ^ Broom ^ Sheer Head ^ OHT Bad Lmer ^ G e ^ C ~_ -~ .8: ^ ~ Rirs ^ Rotasaw ^ Ma net ^ Feller ar , - ` ". ~ ~, Cab `, ~- ^ Winch Other: ,.,: i ~ ~ g. BLADES ALID BIIC$ETS (Check :8"L2~~~tit~at an151'If~fs .+ ^ "PAT' Blade ^ - -: D ~ "bu ' ~ cKet x t.":;~ ^ Chi Blade ^ An k Blade ^ Bottom Du Bkt ^ "Ski")R~ ' ~a ~ ` ^ GP Bucket ^ Coal Blade ^ E Bucket ^ Ca U`oz2Y " ' ; m `'3Ts Bucket ~ ~ u;,a ^ MWti-P Bki ^ Hi h Volume Bkt ^ LandlN Blade ^ F"~ ty ~„ ,::' ' ^"~~ ^ "ll' Blade ^ She" ht Blade ^ Rock Bucket Other: MaRERT CATAC.(fRSF.3 fr!hwrk all Thar axml vl ^ Hea Corotnlction- &i ,Dams, H' hwa d ^ - Grenife, Lknedone, Send S Gravel ^ BuiWi Construction-Cammerdal, Rxsidentiel, Utilities ^ Forest Products-Lcedi ,Road ConsWCtion, Skiddin ,Tinter Hann:sti ^ Landaca ConsbuGion-Camnerdat Residential ^ Forest Produeb•MilaM Yard dons ^ Mining -Metals -Copper, Gokf, Iron, Lead, SiNe, Underground, Uranium, Zinc ^ IMustrial - Dairy7Mushroan Fam, Demdition, Feed Lot, Fertil~rA.kne HarMling, Landfills, Rendad PMrds, S HerMf , SMeI Mill, Trensfer Statiars ^ Mlyd -Non-Metab- C ,Coal, Oil SarMs, Oil Shale, Peat, Unda routs ^ Gowmmerdal -Rued Maintenance, Snow Renwval ^ Petroleum 8 Gas - ation and Oev t, ~ lines ^ RanWl Services - RendN Fleets This applicelion survey u cora,idered b be an integrel pen of the Issse between the Lessor and Lessee. The infarretion obtained ram this survey wtll be of primary importance in the lease payment schedule. Any change in the location, seventy of application, annual hoary usage andPor attactments or configuretion musthe eppro+ed in wn~g by Cataptlla Finandal Services Corporation. NOTE: APPLICATION SURVEY MUST BE SIGNED B7C LE33EE AND AUTHORIZED DEALER REPRE3ENTATIVE SEE REVERSE SIDE FOR ADDITIONAL TERMS AND CONDITIONS WHICH ARE PART OF THIS CONTRACT For the Lessee: Signature: Dealer Managemem Reviewer: Prim Compa3y: CFSC Reviewed by: Model: Quantity: «M 9999.122] _ ~ «;'~? ~ MANDATORY CONDTfION OF EQUIPMENT UPON RETURN: Not withctamtin° the provisions of (check appropriate box): Page 2 of 2 ^ Sections 4 and 9 of the Master Tao Lease ^ Sections 5 and 12 of the Finance Lease ^ Sections 4 and 9 of the Master Finance Lease ^ Sections 5 and 13 of the Gm Term Rental A teement ^ Sections 4 and 9 of the Governmental LeasrPurchase A eat Lessee agrees that each Unit, upon its return, shall: MAINTENANCE AND GENERAL REWIFtEMENTS: • Give the Lessor sully (6g) days notice prig to the Leap termination date of Lessee's irrbnfian to rehrrr arty and all unite b the Lessor. • Behan the wolfs in the sane ceraiguretion, with at atlechnsnls, as vixen deliuaed at lease inception. Lessee is responsible for teak, incbding but not united b, tees, fixes and dotes associabd wdh bar down, loading, shipping arM uMoading of uniE t° a sib designated by the Lessor. • Errata the stets upw reWrn are tlmroughy dearKd, steam dearsd i available, and tee tom all dl, hydreulb end fuel leaks. • Operate antl maintain all units in aacrdarrce vilh CeterpNlar Lubricatbn and Mamtenaxe acrd Operebre guide books, and usae aN mairib'reroe b perfenned at reccrmeMed nWrsuls and ony genuine CalgpNlar fifias and parts are used tx all mainWnance and repais. All unfis must be in goad opaatrrg condition and 6e able to perform aN tacks unto retell bad. • Enrdl all units in a Catergl~ dealer Scheduled Oil SarpNng (SOS) a arnpaaMe program, where avail, br the errtre brrn of the I9ase, arM ksae all tusk, IutncanG, arktitives, arM radsfa vaster s clean and anpies wilt CatapiNar recmanerMed standards. • Ensure all unid tie operated ony in the applicators for which firey were designed arM nsnutadrred. • Maintan a working engirre hour meter ataN lanes. Keep complete records of aN her s rrebr changes along wilt major component dsnge awls and rouble nreuJta~A~GC( Iepe'a records. ,.,_ ,, ~ .. k,,,, • Erntae allservice contact are tNy .,., aid all miil~rtai».addr$iiyvspre. m~e on schedule. Pratlua (PIFa114N&~tla~~..~efa1L,: units aereWned. ATTACHACOP 'S,.;.,v MAINTENANCE CONTRACTS AND P~ ,A[~~aeru PROGRAMS. ~`"w- ~ r'.: ~ ' Provides secaed placeb sire otRleasea-yPor~nrAibeY~iarttt~Lesksur :,~ Praitle access b the units for puryoses oP~r daitNishation b prospectus buyers at lessors request ,,...,. SPECIFlC TINWARE AND SAFETY REONREMENTS: • Enmre fire aperctars carrpatnent is din, and all switches, rtnnindrg systems (EMS, VIMS, VIDS), gages, contd levers, pedak, redo, mirors, seaffi, insulation and all otlcer owbnts ere complete a~ in good workig ardor. • Eaare all window glass is dear, and tee fran sacks and major pits, all window tames, doors and weather stippirg arc canple6a, and aN service aaess mmpartnent corers and doors, tenders, and otlar tat nuW err phstc surfaces are m good wonting order arM flee from den6 and a~lcs. • Ensure all s~ndard CatapiNa and nonLa~pillar safety itarH: are carple& and in good vrbrking ads, incudrg but not tmibd to, roll over pobeton (BOPS) and felling object protecfion (FOPS) syshrrs, seat bath, sops, sakty reNs, grab tors, catwalks. fre suppression systems. warebg starts, cunaras arM monitors. • Ensure aN electrical canponenfs, incbdng but not tended b, vming harness, batleies, alternators, drive belts, lighting arrd ak conditonbg sysbnrs are caNrleN and in good waking order. Ersae all repais made to rruin stucpres, indudrg but nor Incited b, mom tames. roller frames, car bodes, swing g~is, dawbars, ckdes, component housings, krader ems, booms, sticks, fag links, loa~r linkages, tuck bodies, buckets, rippers, and ardss nest be acconplbhed in aaordance with fectay recanmended nutadals and ~ V ~Rarr~, ndudmg but not united to, bucke$. doze lades, c fins, dNms, feet, tires, screeds, elevabr fiigh6. r `~ .' stuctral integrity and have fifty percent (50°/~ YIt3~t turd ruFL6TbeIteU oohs with a ntmmum of filly percent (W°Q 9Ii~Oh each and every caryonent, indudng but not Irnited to, tads shoes, r,-pens. bushings, ides, bogies, sprockets. career rollers. and treck rollers. Bells not have any wls that extend into the omds ant must notbe missing guide bkrdcs puss bars (lugs). Chagas will be assessed for eadc component rrotmeetng the • Ratan all Nbba tie uninwfih a minimum of fifty peNan (50%d nartening tae of tln: original tad lire of eadr tie. Reppped tiresare notaczepfable substtuas. All tires must ba a mobbed setwth the sane lead type and patBun and have rw significant cuts a chunking of the t~ or sitle wells. Skid Sher tires are exempt tan this provision. LESSOR RETAINS THE RIGHT TO ASK FOR ANY AND ALL REPAIR AND MAINTENANCE RECORDS DURING THE LEASE TERM AND/OR LEASE TERMINATION. A FIILL MACHINE INSPECTION MAY BE CONDUCTED AT LESSEE'S EXPENSE ANYTIME EVIDENCE DEMONSTRATES MACHINES ARE BEING ABIISED FROM NEGLECT OR MISAPPLICATION. REMEDY FOR RETURN CONDTFIONS: Lessee will be invoiced for the parts and labor based on your local Caterpillar dealer's retail prices and retail labor mre:> to replace tires, undercarriage cemponems, tabs and all other nonconforming cemponems as outlined m the `REMAINING LII+E REQUIREMEAfTS^ section of the Mandatory Condition of Ecptipmem Upon Return The invoiced amounts will be based on the following perceNages of remai^in9 fife a~ is payable upon receipt of invoice: Life Remaining Charge to Lessee 50% or greater No charge to Lessee 31% to 49% 50% charge to Lessee 0% to 30% 70% charge to Lessee MAXIM[IM USAGE: The toodel listed and equipped as stated above will be operated an estimated total of boars per mmttb over a term of mouths for total usage during the leasing term of hours. This total usage combined with any acaunulated ]ems poor to the Lease iceeption date, as stated above user current hours, will be the total albwable maehiae hours for the life of the Lease and the basis for any overuse charges. Total Lease Hours + Current Hours =Total Allowable Machine Hours OVERUSE CALCULATION: In addition to the Lessor's other tights hereunder and not in lieu thereof, Lessee shall pay Lessor additional rent for each hour in excess of the Total Allowable Machine Hotus established for the Lease as stated above. This hourly rate shall be $ per hour. Please note: To avoid wetvse charges, notify Cat Finaneial immediately of any increase in machine usage that will cause the total usage to exceed the "Total Allowable Machine Hours" as staled above. The Lease contract wiB be adjusted to reDect the correct hour usage. r ,.m.ns.a~...,_ GOVERNMENTAL EQUIPMENT LEASE-PURCHASE AGREEMENT Lessee: Lessor. Caterpillaz Financial Services Corporation Address: Address: 2120 West End Avenue City: City: Nashville State/ Zip State/Zip: Tennessee 3'7203-0001 Thh Govemmerdal Equipment Lease/PUrchase Agreement re dated as of (the "AgreemenC) 1. LFIASE PAYMENTS; CURRENT EXPENSE. Lessee agrees to pay the lease payments (the "Lease Payments") witlt rasped ro this Agreement during the term hereof in the amounts and on the dates spedfietl bekrvr. A Porten of each Lease Payment Is paitl as antl represerrre the payment of Interest and the balance of each Leese Payment is paid ea arW represents payment of prNdpal. Lessor Is authorized to insert the due dates of the Lease Payments and any other iMOrmation tfwt should be added hereto in Order for mis Agreement ro reAed the specific agreements of the pertiea hereto. All Lease Payments shall be paid ro Lessor wahout notice or tlemaM at such place as Lessor may from trtne ro time dasigrrete by written noaoe ro Lessee. Lessee shall pay Ma Lease Payments exdusivey from moneys IegeNy availabb therefor, in lawful money of the UMted States of America. The obligations of Lessee, including its obAgatbn a pay the Lease Payments due in any freml year, stlall coriaarne a cuneM experree of Lessee for wdr fieml year arM eheH rat mmtttlae an intlebQedness of Lessee waMn the meaning of the mlgtiWtion ant laws of the State N wMCh Leeeee U bcetetl (the "State'). Ndhing herein shell corretitute a pledge by Lessee of arty lazes or other moneys (other then morxeys IawruNy appropriated from tlme ro time for the payment of the'PaymeMS" tae tlefine0 in the leaf eeMemx of this Paagreph) owMg hereunder. EXCEPT AS PROVIDED IN PARAGRAPH 4, LESSEE'S OBLIGATIONS TO MAKE THE PAYMENTS TO LESSOR IN THE AMOUNTS REQUIRED HEREBY ARE ABSOLUTE AND UNCONDITIONAL. LESSEE FURTHER EXPRESSLY AGREES THAT IT WILL MAKE ALL SUCH PAYMENTS TO LESSOR REGARDLESS OF, AND HALL NOT ASSERT AGAINST LESSOR, ANY DEFENSE, CLAIM, SETOFF, OR COUNTERCLAIM OR OTHER RIOHi, EXISTING OR FUTURE, WHICH LESSEE MAY HAVE AGAINST THE LESSOR OR ANY OTHER PERSON OR ENTITY FOR ANV REASON. As used in this Agreement, 'Payments" shall mean the Lease Paymeras antl am/ omer amourds required ro be paid Dy Lessee hereunder. Lease Payments shall be paid by Lessee to Lessor es rolbws: E will be paid ro and the ba~nce of the Lease Payments is payade In successive payments of which me first peymeMa are in the amount o(S each, and the last payment u in me amount of S plus all omer amwnfa then owing hereuMer, wNt the first Lease Payment due on ant subsequent Lease Payments tlue on a Hke tlate of each mereafler untH paid in full g Lessor does not receNe a Lease Payment on me date A rs tlue, Leefee shall pay to Lessor, on demand a Pate payment charge equal ro the ksaer d fNe pemeM (5%) of the payment not paid when due or me highgt diarge aAowM by law, whchever is less. The portion o/the Lease Payments mnstauting prindpal shell bear interest (wmputed on ma bnam o4#pygl days elgpseQ. in a 380 day year) at the rate of % i perannum. ' F-.:.x:: r r-~ 2. SECURITY INTEREST. Lessor agrees to lease ro Lessee end Lessee agrees ro base from L Mme $taNe of u~!ptsid(tltie "Equipment") described below. In omer to sewn all of as obligations hereunder, Lessee hereby: (a) greMa ro lessor a first ant prar a4 ;MEreat m~Hry-ar~i8 ,,.tRle; and mterest of Lessee in the Equipment and In all addrtkns, eXachmeMS, aaxssions, and wbstltutiorrs Hereto, and on any And(( apnee~&k tttF~ror ad and hereby authorizes the filing of such finandng &atemeMS, or to execute antl deliver such cemfimtes of ells peapggpw~, oo ma~oR iShNm sadsfadory a Lessor necessary or aPProPrlate ro evkence such eewrity interest Lessee at its expense yal}prakdag6 fsitd ~ Iy~et6al m Egupmerd and will keep the Equipment free antl clear of any ant all claims, Hens, enwmb ;aGd legal promaRl!s hp5s>MiatQAd't~ItgpdarlwtiL' ," ;~ < ,., pescriotloa oTUait(sl E, i 4 N,..~%~ SerlaWl f ~ ./ Lessee confirms mat H has an Immediab neetl for, and ezpeds to make immetliate use of, wbsWMiaHy all the Equipment, which need is not temporary or expected ro diminish during the term ottMS Agreement. The Equipment will be used by Lessee for the purpose o(perbrming one or more of Lessee's govemmeMel fundions mrreislaM wiM Me scope of Lesaee'e authority and not in em/ tretle or budness mmetl on by a peraen other than Lessee. 3. WARRANTIES. LESSOR HAS NOT MADERND DOES NOT MAKERNY WARRANTY, REPRESENTATION OR COVENANT OF ANV IOND, EXPRESS OR IMPLIED, AS TO THE EQUIPMENT. AS TO LESSOR, LESSEE'S LEASE AND PURCHASE OF THE EQUIPMENT SHALL BE ON AN "AS IS" /\ND °WHERE IS" BASIS AND'1MTH ALL FAULTS". Lessee shaA entorce aN wartaMin, agreements and reprNaMatbna, if any, wah regent to the Equipment agaimt the maker of such warranties. Except pursuant to en amendment as provided herein, ra person ie auAarized to waive or aAer any term or condiAOn of this agreement. 4. NONAPPROPRIA7ION. Lessee covenants and represeMe to Lessor that (a) Lessee will, ro me aaeM perminetl by State law include in IIS budget for each wccessive Aecal year during the tens of mis Agreement a wfficieM amount ro pmnM Leases ro discharge all of da obligations hereunder, (b) tatesae has budgeted end has avai~bk ror Me aareM flsml year wMCieM funds ro compy wIM Hs obligetbro under mis Agreement and (c) mere are no drwrrremncea presently effecting Lessee that could reasormbry be ezpeded to adversey stied tta abiNly ro butlget funds for the payment of wms due hereunder. Nolwahatentlirp arty provision of mis Agreement to the cenbary, Lessor and Lessee agree that in the event mat prior ro the commencement of arty of Leaxe's fiscal years Lessee does rot have suffident funtls ap{xopriatetl ro make the Pamments due hereunder for said fiscal year, Lessee shall have the optbn of terminating this Agreement as of the data of the commencement of such fiscal year by gNing Lessor sixty (80) tlays prior written notcee of its IMeM ro cencel mis Agreement. No later than the last tlay of the last fixal year br which epproprietiorre were made forme PaymeMa tlue hereunder (me "Redrm Date"), Leases shalt realm ro Lessor all, but cot kK than all, of the Equipment, at Lessee's sok expense, M accordance wim Peregreph 18, and mis Agreement shall terminate on the Remm Date wahoM pemity or expense ro Lessee antl Lessee shall rat be oNigsted ro DaY me lease Payments beyond ash flacel year, provWed, Mat Lessee ehaA pay all Lease PaymeMe ant omer Payments ar which moneys have been appropriatetl or are otherwise available, provided fuMar, mat Lessee shall pay month-to+nonth rent at the rete set by lessor br each month or pan thereof that Lessee fella a return the Equipment To the extent lawful and permided by public policy, Lessee agrees tt will not lertnimle mis Agreement under Me provisions of this Paragraph 41f any footle are approprdated to it or by a for the acquisition, retention or operetion of me EquiprtreM or omer equipment performing hxa8one similar to me Equipment ar me fiscal year In which termination occurs or the next wcoeeding fleml year. 6. TAX WARRANTY. Lessee is vafugy existing as a body corporate antl polaic antl W btic irreW mentality of the Sfate wah the power antl aumorily to erner IMO this Agreement antl a carry out tts obligatiorre hereunder antl the bansedmns coMempYted hereby. Lessee shall, at all times, do antl penorm aN acts antl wings rocessery antl within tie control in omer ro eawre flat Me irxar~t eomponeM of me Lwsa PaymeMa received by me Lessor shaA, ror the purposes of Federal Iraome bxation, be exdutled from the gross income of the Lessor antl shell not take or Parma any ad or Ming that court muse the Interest component of the Lease Paymenre receNed by the Lessor ro be indudetl in the gross income of the Leanor for the purposes of Federal income taxation. The Equipment will not be used in arty bade ov business mMetl on by a person other men Lessee. Lessee will report tMa Lease Purchase tome IMemel Revenue Service try Ating Form 8038G, 8038C or 8038 whichever b applicable. Falure ro do co will cause Me agreement to lose Its tax exempt status. Lessee agrees that athe appropriate form is not Bled, the interest rate will be adjusted k me equivalent kzaMe Interest rete. 6. ASSIGNMENT. Leacee may not, wRhout Lessors wrttkn wnaeM, by opereaon of taw or dherwiee, assign, transfer, pledge, hypomecek or omerwke dispose of fts ngM, atle ant interest in and k this Agreement eM th Equipment amgw Brent or assign a aecunty interest herein, in whole or in part Lessor may not trerrekr, sell, assign, pledge, hypoMeaate, or otherwke dispose of tts right, title and Interest in antl a mk Agreement and the EquiprceM and/or grant or assign a security interest herein, in veleta or In part. 7. INDEMNITY. To the extent pertnRkd by law, Lessee assurces Ilabiliry for, agrees k and does hereby indemnity, proved and hold hartnkss Lessor and its agents, emgoyces, officers, directors, wbsitlkrks antl stockholders from and agairrst arty and aN fiabRRies, obfgatiorrs, losses, damages, injuries, ckMre, tlemarMS, penedies, actions, costs ant expenses (inUWing masombk aaomay's kes), of whatsoever krrtl antl rrelure, arking out of the use, wndRion (inducting, but rat limited k, IMeM and caber dakds and whetlxr or not dkwverebb M Lessee or Lessor), operefion, ownership, selection, tlelNery, storage, kaeing or return of any Rem of Equipment, regardless of where, how antl by whom opareted, or erry lecture on Me part of Lessee b swept the Equipment or otherwise fo perform or comply with any condttions of Mk Agreement. The indemntties wnkinetl in Mies Paragraph shall continue in full force and efted wiwRhaknding Me krmineaon of Mk Agreement. Lessee is an indepeMeM contractor antl nomirq wntairretl in thk Agreement shall author¢e Lessee or any other person W operate or use any Equipment so as to Inver am/ obligation on behalf of Lessor w impose arty IiabiM1ty on Lessor. Nothing in tlas Agreement rs inhndad rar slrarM arty provisicn of ltds AgrernaR be wnshued to, erne, waives, abddge a otherwise rrrodRy arrY dghts, ckhrrs. or causes of action tlret the Lessee may Dew against anY parson w errYty oMw than Lessor. S. LOSS AND DAMAGE. Lessee shall bear Me eMirc nak of loss, then, tleetmd'an or damage k the Equipment or any part Mereof from any cause whatsoever. No bss, malt, tleatnxRion or damage of the Equipment shall relieve Lessee of the obligaton to make Leese Payments or to pertonn arty oMigatbn owing hereunder. In the evert of lose, melt, desWdkn or damage of any kind k airy item of the Equipment, Lessee shall immedkky notify Leeeor and, et the optbn of Lessor, shad: (a) pkce the same in good repair, working order and wndilbn (ordkrary war and tear excepted); or (b) repkce tM same wdh like egdpmeM in good repev, working order and cerMitlon (odinary war end tear excepkrq. The "net proceeds" (as defined M the lest sentence of Mk Paragraph) of any insurence recovery shed be appdetl to tlause (a) or (b) as provided above unless an Event of [kkud shall have owunetl and be cendnukg in which case Me net proceedsshall be paid k Lessor to the extent o(, and appded k as amount due and payable b Lessor under this Agreement. Arty net proceeds remaining after application of net proceeds in awortlance wIM the preceding sentence shah be paid to, arW belong a, Lessee. I7Me net proceeds of any insurence recovery are inwlllUent to pay in full for the repair, reatoreaon or replacement ofthe Equipment, Lessee shell eRher wmpkle me cads to the mtkkclbn of Lessor, and pay any vests Inexcess o/Me rx;t praceeda without arty daim for reimbursement or wetlR from Lessor or pay Ms then appdcabk purchase price br the Equipment (tie determined by Lessor acooMing k ce usual antl astomary manner) plus ad Payments then due and owing hereun~r. "Net proceeds' shad mean Ma amount remaining from the groffi proceeds of any insuance daim w wraemnagon scam after deducting all experlaes (haluding rwaonabk attomayA kes) incurred in the wlkcfion of such Uaim or event. 8. INSURANCE. Lessee agrees k keep the Equipment insured to prated ail interea5 of Lessor, at Ltsxa's expense, br such risks, in such amounts, in such forms antl with such companies as Lessor may require, indudirg but not limited to fire antl eMendetl coverage insuance, exDbaion antl cellision coverage, and pereonai fiabidty and property damage Ikbifity insurance. Lessor may (but shell not be obligated to) insure iM Equi{xnent M the expense of Lessee. Any insurence pollUes relating to loss or damage to the Equipment wUl name Lessm as loss payee as its interests may appear antl the proceeds may be appded toward the repkcemeM or repair of Me Equipment or Me saaskcaon o/the Payments due hereunder. Arry such policies aired contain a provision amt they may not ba cencelkd w the coverage reduced wNad tNriy (30) days pnorwritten nonce k Lessor. Arry Ikd1Ry insurance polides will name Lessee antl Lessor as co-iruured and me juoceerk chap be appfietl first b Lessor to Me eMeM of ds liabidty, if any, and Me belarae b Lessee. Lessee shah famish certificates, polities or endorsements to Lessor as proof of such Irreureltce. Lessee hereby appoints Lessor as Lessee's aaomeydn-fad to make claim br, receive payment of antl execute or endorse all tlocumenta, checlm or tlrefte for low or damage or return premiums antler any inarence policy issued on Me Equipment ant hereby assigns to Lessor all of Rs ngM, iNle and kserest in antl to such Insurerae pofidea antl the proceeds mereof. a Losses is sea-irroured cash reaped to equipment such ae Me Equipment, Lessee sMll makrtain an aslrwrMNy wand seaimurance program inform sstiafaMOry to Lessor and rhea provide evidence tltereof in form and subskrxx satiskdory to Lemur 70. TA%ES, MAINTENANCE AND INSPECTION. The parties to min Agreement contemplate that the Equipment will be used for a govemmerRal or proprietary purpose of Lessee and, Merebre, that the EqufpmaM wNl be ezempl from all lazes presently aesesaed end ivied with respell to pereorml properly. Neverthelam, if tlk use, possession or acquk@ion of Me Equipment ce determined to be subject a kxaaon, Lessee shell pay when due all tutee antl govemmeMel charges assessed or ivied ageirat or with respect k the Equipment. Lessee agrees k use, operate antl rtaintain the Equipment in acoortlance wfth all law, reguktbrre and oMirgncesara in aaortlance wtth the proviebn of arty puttees of insurance wversg me Equigrlent, arxl shall not rent the same or pennR the same to be used by arryone other tlrsn Lessee or Lessee's empbyees Lessee agrees to keep the Equipment in good repair, wring order and wndRlon (ordinary war and tear ezcepkd) end house the same in suitable shelter, and to perms Lessor or its easignsk leaped the Equipment e