GOVERNMENTAL EQUIPMENT LEASE-PURCHASE AGREEMENT Lessee: KERB COUNTY, TEXAS Address: 700 MAIN ST RM 103 City: KERRVILLE State/ Zip TX 78028 Lessor: Caterpillar Financial Services Corporation Address: 2120 West End Avenue City: Nashville State/Zip: Tennessee 37203-0001 This Governmental Equipment Lease/Purchase Agreement is dated as of (the "Agreement"). 1. LEASE PAYMENTS; CURRENT EXPENSE. lessee agrees to pay the lease payments (the "Lease Payments') with respect to this Agreement during the term hereof in the amounts and on the dates specified below. A portion of each Lease Payment is paitl as and represents the payment of interest and the balance of each Lease Payment is paid as and represents payment of principal. Lessor is authorized to insert the tlue tlates of the Lease Payments and any other information that should be added hereto in order for this Agreement to reflect the specific agreements of the parties hereto. All Lease Payments shall be paid to Lessor without notice or demantl at such place as Lessor may from time to hme designate by written notice to Lessee. Lessee shall pay the Lease Payments exclusively from moneys legally available therefor, in lawful money of the United States of America. The obligations of Lessee, including its obligation to pay the Lease Payments due in any fscal year, shall constitute a current expense of Lessee for such fiscal year and shall not constitute an indebtedness of Lessee within the meaning of the constitution and laws of the Slate in which Lessee is located (the "State"). Nothing herein shall constitute a pletlge by Lessee of any taxes or other moneys (other than moneys lawfully appropriated from lime to time (or the payment of the "Payments" (as defned in the last sentence of this Paragraph) owing 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 W ILL NOT ASSERT AGAINST LESSOR, ANV DEFENSE, CU+IM, SETOFF, OR COUNTERCLAIM OR OTHER RIGHT, EXISTING OR FUTURE, WHICH LESSEE MAY HAVE AGAINST THE LESSOR OR ANY OTHER PERSON OR ENTITY FOR ANY REASON. As usetl in This Agreement, "Payments' shall mean the Lease Payments and any other amounts required to be paid by Lessee hereunder. Lease Payments shall be paid by Lessee to Lessor as follows: $1,947.32 will be paid in arrears antl the balance of the Lease Payments is payable in 59 successive monthly payments of which the first 58 payments are in the amount of $1,947.32 each, and the last payment is in the amount of $56,667.32 plus all other amounts then owing hereunder, with the first Lease Payment tlue on and subsequent Lease Payments due on a like date of each month thereaker until paid in full. If Lessor does not receive a Lease Payment on the date it is tlue, Lessee shall pay to Lessor, on demand a late payment charge equal to the lesser of five percent (5 %) of the payment not paid when due or the highest charge allowetl by law, whichever is less. The portion of the Lease Payments constituting principal shall bear interest (computetl on the basis of actual tlays elapsed in a 360 day year) at the rate of 5.35 % per annum. 2. SECURITY INTEREST. Lessor agrees to lease to Lessee antl Lessee agrees to lease from Lessor, the items of equipment Qne "Equipment") described below. In ortler to secure all of its obligations hereunder, Lessee hereby (a) grants to Lessor a (rst and prior security interest in any and all right. title, and interest of Lessee in the Equipment antl in all additions, attachments, accessions, and substitutions thereto, and on any proceeds therefrom and (b) agrees to tlo any further act and hereby authorizes the (ling of such financing statements, or to execute and deliver such certificates o(title, notices or acknowletlgement or other instruments in farm satisfactory to Lessor necessary or appropriate to evidence such security interest. Lessee at its expense will protect and defend Lessors security interest in the Equipment antl will keep the Equipment free and clear of any and all claims, liens, encumbrances and legal processes however and whenever arising. Description of Unitfsl Serial# (I)New 420D Caterpillar Backhoe Loader 1'DP24569 (I)New 42UD Caterpillar Backhoe Loader PDP25626 Lessee confirms that it has an immediate need for, and expects to make immediate use of, substantially all the Equipment, which need is not temporary or expected to diminish during the term of this Agreement. The Equipment will be used by Lessee far the purpose o(performing one or mare of Lessee's governmental functions consistent with the scope of Lessee's authority antl not in any trade or business carried on by a person other than Lessee. 3. WARRANTIES. LESSOR HAS NOT MADE AND DOES NOT MAKE ANV WARRANTY, REPRESENTATION OR COVENANT OF ANV KIND, EXPRESS OR IMPLIED AS TO THE EQUIPMENT AS TO LESSOR, LESSEE'S LEASE AND PURCHASE OF THE EQUIPMENT SHALL BE ON AN "AS IS" AND "WHERE IS" BASIS AND "WITH ALL FAULTS" lessee shall enforce all warranties, agreements antl representations, if any, with regard to the Equipment against the maker of such warranties. Except pursuant to an amendment as provided herein, no person is authorized to waive or alter any term or condition of this Agreement. 4. NONAPPROPRIATION. Lessee covenants antl represents to Lessor that (a) Lessee will, to the extent permitted by State law include in its butlget for each successive fiscal year tluring the term of this Agreement a sufficient amount to permit Lessee to discharge all of its obligations hereunder, (b) Lessee has budgetetl and has available for the current fiscal year sufficient funtls to comply with its obligations under this Agreement antl (c) there are no circumstances presently aHecling Lessee that could reasonably be expected to adversely aflect its ability to budget funds for the payment of sums due hereuntler. Notwithstanding any provision of this Agreement to the contrary, Lessor and Lessee agree that in the event that prior to the commencement of any of Lessee's fiscal years Lessee does not have su~cient funds appropriated to make the Payments due hereuntler for saitl fiscal year, Lessee shall have the option of terminating this Agreement as of the date of the commencement of such fiscal year by giving Lessor sixty (60) days prior written notice of its intent to cancel this Agreement. No later than the last day of the last fiscal year for which appropriations were made for the Payments due hereuntler Qhe'Return Date"), Lessee shall return to Lessor all, but not less than all, of the Equipment, at Lessee's sole expense, in accordance with Paragraph 18, and this Agreement shall terminate on the Return Date without penalty or expense to Lessee and Lessee shall not be obligated to pay the Lease Payments beyond such fecal year, provided, that Lessee shall pay all Lease Payments and other Payments for which moneys have been appropriated or are otherwise available, provided further, that Lessee shall pay month-to-month rent at Ne rate set by lessor for each month or part thereof that Lessee fails to return the Equipment, To the extent lawful antl permitted by public policy, Lessee agrees it will not terminate this Agreement under the provisions of this Paragraph 4 if any funds are appropriated to it or by it for the acquisition, retention or operation of the Equipment or other equipment performing Functions similar to the Equipment for the fiscal year in which termination occurs or the next succeeding fiscal year. 6. TA% WARRANTY. Lessee is validly existing as a body corporate and politic and public instrumentality of the Slate with the power and authority to enter into this Agreement and to carry out its obligations hereunder and the transactions contemplated hereby. Lessee shall, at all times, do and perform all acts and things necessary and within its control in order to assure that the interest component of the Lease Payments received by the Lessor shall, for the purposes of Federal income taxation, be excluded from the gross income of the Lessor and shall not take or permit any aM or thing that could cause the interest component of the Lease Payments received by the Lessor to be included in the gross income of the Lessor for the purposes of Federal income taxation. The Equipment will not be used in any trade or business carried on by a person other than Lessee Lessee will report this Lease Purchase to the Imernal Revenue Service by fling Form 8038G, 8038C or 8038 whichever is applicable. Failure to do so will cause the agreement to lose its tax exempt status. Lessee agrees that if the appropriate form is not filed, the interest mte will be adjusted to the equivalent taxable interest rate. 6. ASSIGNMENT. Lessee may not, without Lessor's written consent, by operation of law or olhenvise, assign, transfer, pledge, hypothecate or otherwise dispose of its right, title and interest in and to this Agreement and the Equipment and/or grant or assign a security Interest herein, in whale or in part. Lessor may not transfer, sell, assign, pledge, hypothecate, or otherwise dispose of its right, title and interest in and to this Agreement and the Equipment and/or grant or assign a security interest herein, in whole or in part. 7. INDEMNITY. To the extent permitted by law, Lessee assumes liability for, agrees to and does hereby indemnify, protect and hold harmless Lessor and its agents, employees, officers, directors, subsidiaries and stockholders from and against any and all liabilities, obligations, losses, damages, injuries, claims, demands, penalties, actions, costs and expenses (including reasonable attorneys fees), of whatsoever kind and nature, arising out of the use, condition (including, but not limited to, latent and other defects and whether or not discoverable by Lessee or Lessor), operation, ownership, selection, delivery, storage, leasing or return of any item of Equipment, regardless of where, how and by whom operated, or any failure on the part of Lessee to accept the Equipment or otherwise to perform or comply with any wntlilions of this Agreement. The indemnities contained in this Paragraph shall continue in full force and effect notwithstanding the termination o(this Agreement. lessee is an independent wntractor and nothing contained in this Agreement shall authorize Lessee or any other person to operate or use any Equipment so as to incur any obligation on behalf of Lessor or impose any liability on Lessor. Nothing in this Agreement is Intended nor should any provision of this Agreement be construed to, limit, waiver, abridge or otherwise modify any rights, claims, or causes of action that the Lessee may have against any person or entity other than Lessor. 8. LOSS AND DAMAGE. Lessee shall bear the entire risk of loss, theft, destruction or damage to the Equipment or any part thereof from any cause whatsoever. No lass, theft, destruction or damage of the Equipment shall relieve Lessee of the obligation to make Lease Payments or to perform any obligation owing hereunder. In the event of loss, theft, destruction or damage of any kind to any item of the Equipment, Lessee shall immediately notify Lessor and, at the option of Lessor, shall: (a) place the same in good repair, working order and condition (ordinary wear and tear excepted); or (b) replace the same with like equipment in good repair, working order and condition (ordinary wear and tear excepted). The "net proceeds" (as defined in the last sentence o(mis Paragraph) of any insurance recovery shall be applied to clause (a) or (b)as provided above unless an Event of Default shall have occurred and be continuing in which case the net proceeds shall be paid to Lessor to the extent of, and applied to the amount due and payable to Lessor under this Agreement. Any net proceeds remaining after application of net proceeds in accordance with the preceding sentence shall be paid to, and belong to, Lessee. If the net proceeds of any insurance recovery are insufficient to pay in full for the repair, restoration or replacement of the Equipment, Lessee shall either complete the work to the satisfaction of Lessor, and pay any costs in excess of the net proceeds without any claim for reimbursement or credit from Lessor or pay the then applicable purchase price for the Equipment (as determined by Lessor according to its usual and customary manner) plus all Payments then due and owing hereunder. "Net proceeds" shall mean the amount remaining from the gross proceeds of any insurance claim or condemnation award alter deducting all expenses (including reasonable attorneys' fees) incurred in the collection of such claim or award. 9. INSURANCE. Lessee agrees to keep the Equipment insured to protect all interests of lessor, at Lessee's expense, (or such risks, in such amounts, in such forms and with such companies as Lessor may require, including but not limited to fire and extended coverage insurance, explosion and collision coverage, and personal liability and property damage liability insurance. Lessor may (but shall not be obligated to) insure the Equipment at the expense of Lessee. Any insurance policies relating to loss or damage to the Equipment wilt name Lessor as loss payee as its interests may appear and the proceeds may be applied toward the replacement or repair of the Equipment or the satisfaction of the Payments due hereunder. Any such policies shall contain a provision that they may not be cancelled or the coverage reduced without thirty (30) days prior written notice to Lessor. Any liability insurance policies will name Lessee and Lessor as co-insured and the proceeds shall be applied first to Lessor to the extent ofils liability, if any, and the balance to Lessee. Lessee shall furnish certificates, policies or endorsements to Lessor as proof of such insurance. Lessee hereby appoints Lessor as Lessee's attorney-in-fact to make claim for, receive payment of and execute or endorse all documents, checks or drafts for loss or damage or return premiums under any insurance policy issued on the Equipment and hereby assigns to Lessor all of its right, title and interest in and [o such insurance policies and the proceeds thereof. If Lessee is self-insured with respect to equipment such as the Equipment, lessee shall maintain an actuarially sound self-insurance program in form satisfactory to Lessor and shall provide evidence thereof in form and substance satisfactory to Lessor 10. TAXES, MAINTENANCE AND INSPECTION. The ponies to this Agreement contemplate that the Equipment will be used for a governmental or proprietary purpose of Lessee and, therefore, that the Equipment will be exempt from all taxes presently assessed and levied with respect to personal property. Nevertheless, if the use, possession or acquisition of the Equipment is determined to be sublect to taxation, Lessee shall pay when due all taxes and governmental charges assessed or levied against or with respect to the Equipment. Lessee agrees to use, operate and maintain the Equipment in accordance with all laws, regulations and ordinances and in accordance with the provision of any policies of insurance covering the Equipment, and shall not rent the same or permit the same to be used by anyone other than Lessee or Lessee's employees. Lessee agrees to keep the Equipment in good repair, working order and condition (ordinary wear and tear excepted) and house the same in suitable shelter, and to permit Lessor or its assigns to inspect the Equipment al any time and to otherwise protect its interests therein. If any Equipment is customarily covered by a maintenance agreement, Lessee will furnish Lessor with a maintenance agreement by a party reasonably satisfactory to Lessor. No maintenance or other service for the Equipment will be provided by Lessor. Without the prior written consent of Lessor, Lessee shall not make any alterations, modifications or attachments to the Equipment that cannot be removed without materially damaging the functional capabilities or economic value of the Equipment. In the event the Equipment is returned to Lessor, the Lessee, at its sole cost and expense, and al the request of Lessor, will remove all alterations, modifications and attachments, and repair the Equipment as necessary to return the Equipment to the cendilion in which it was furnished, ordinary wear and tear and permitted modifications excepted. All replacement parts shall be free and clear of liens of others, and shall become pan of the Equipment and subject to the terms hereof. 77. LATE PAYMENTS AND PERFORMANCE OF LESSEE'S OBLIGATIONS BY LESSOR. If (a) any Payment other than a Lease Payment is not paid when due or (b) Lessee fails to perform any of its obligations hereunder and Lessor performs the same for the account of Lessee and incurs ezpenses, costs, penalties or liabilities in so doing ("Reimbursable Expenses"), Lessee shall pay interest on such Payment from the date due and, with respect to the Reimbursable Expenses, from the date incurred, in each case until paiQ al the rate of eighteen (18 %) percent per annum (or, if such rate is in excess of the maximum rate permitted by law, the maximum rate permitted by law). 72. DEFAULT. The following shall constitute an event of default under this Agreement, and the terms "Event of De(aull" and "default" shall include, whenever they are used in this Agreement, the following: (a) subject to Paragraph 4 hereof, failure by Lessee to pay any Lease Payment or any other Payment required to be paid when due and such failure continues (or ten (10) days after the due date thereof, (b) Lessee fails !o perform or observe any other covenant, condition, or agreement to be pertormed or observed by it hereunder and such failure is not cured within hventy (20) days after written notice thereof by Lessor; (c) the discovery by Lessor that any statement, representation or warranty made by Lessee in this Agreement or any writing ever delivered by Lessee pursuant hereto or in connection herewith is false, misleading, or erroneous in any material respect; (d) any determination by the United Slates Internal Revenue Service that the portion of the Payments constituting "interest" is includible in the gross income of Lessor for Federal income tax purposes, or (e) the filing of a petition in bankruptcy by or against Lessee, or failure of Lessee promptly to lift any execution, garnishment, or attachment of such consequences as would impair the ability of lessee to carry on its governmental functions, or assignment by Lessee for the benefit of creditors, or the entry by Lessee into agreement of composition with creditors, or the approval by a court of competent jurisdiction of any adjustment of indebtedness of lessee, or the dissolution or liquidation of Lessee. iB. REMEDIES. Whenever any Event of Default shall have occurred, Lessor shall have the right, at its option and without any further demand or notice, to lake one or any combinahon of the following remedial steps: (a) Lessor, may declare all Lease Payments due or to become due during the fscal year in which the Event of Default occurs to be immediately due and payable by Lessee; (b) Lessor may repossess any or all of the Equipment by giving Lessee written notice to tlelrver the Equipment to Lessor in the manner provided in Paragraph 18, or in the event Lessee fails to do so within ten (10) tlays aNer receipt of such notice, and subject to all applicable laws, Lessor may enter upon Lessee's premises where the Equipment is kept antl take possession of the Equipment and charge Lessee for casts incurretl in repossessing the Equipment, including reasonable attorneys' fees. Lessee hereby expressly waives any damages occasioned by such repossession. Nohvithstanding the fact that Lessor has taken possession of the Equipment, Lessee shall continue to be responsible for the Lease Payments due during the fiscal year then in effect; (c) if Lessor terminates this Agreement antl takes possession and disposes of the Equipment or any portion thereof, Lessor shall apply the proceeds of any such disposition to pay the following items in the following order: (i) all casts (including, but not limited to, attorneys' fees) incurred in securing possession of the Equipment; (ii) all expenses incurred in completing the disposition of the Equipment; (iii) any sales or transfer taxes; (iv) all costs and expenses incurred by Lessor to return the Equipment to the condition required by Paragraph 18 hereof; and (v) all Payments whether due or due in the future hereunder. Any disposition proceeds remaining after these disbursements have been made shall be paid to Lessee. In addition, Lessor may exercise any other right, remedy or privilege that may be available to Lessor under applicable law or, by appropriate court action al law or in equity, Lessor may enforce any of Lessee's obligations hereunder. Lessor's rights and remedies are cumulative and may be exercisetl concurrently or separately. No such right or remedy is exclusive o(any other right or remedy permitted by this Agreement or by law or in equity. 14. NOTICES. For the purpose of this Agreement any notices required to be given. shall be given to the parties hereto in writing and by certified mail at the atltlress herein set forth, or to such other addresses as each party may substitute by notice to the other, which notice shall be effective upon its receipt. 15. DELIVERY; TITLE. Lessee has advisetl Lessor o(its desire to lease the Equipment, the cos[ of the Equipment, the expected delivery date and the desired lease terms for the Equipment. Lessee shall order such Equipment antl shall cause such Equipment to be delivered pursuant to Lessee's directions. Lessor shall have no liability to Lessee, or to any other person for transportation, delivery or installation of the Equipment. Lessee shall bear the risk o(loss with respect to any Equipment. Notwithstanding the designation of Caterpillar Financial Services Corporation as Lessor, Caterpillar Financial Services Corporation shall not own the Equipment. Unless applicable law requires to the contrary. legal title to the Equipment, including, if applicable, any software license component thereof shall, so long as an Event of Default or the termination of this Agreement pursuant to Paragraph 4 hereof has not occurred, and only as provided by law. is in Lessee. Upon the occurrence o(an Event of Default or termination of this Agreement pursuant to Paragraph 4 hereof, Full and unencumbered legal title to the Equipment shall pass to the Lessor without the necessity of further action by the parties hereto, and [he Lessee shall have no further interest therein. In connection with the reversion of title to Lessor, Lessee shall execute antl deliver to Lessor such documents as Lessor may request to evidence the passage of Lessee's title antl interest therein, antl upon request by the Lessor, the Lessee shall deliver possession of the Equipment to the Lessor at Lessee's sole cost and expense and in the condition requiretl by Paragraph 18 hereof. i6. MISCELLANEOUS. This Agreement may not be mod RieQ amended, altered or changed except by a written agreement signed by both parties. In the event any provision hereof shall be invalid or unenforceable. the remaining provisions hereof shall remain in full force and effect. This Agreement, together with exhibits, constitutes the entire agreement between Lessee and Lessor and supersedes all prior and contemporaneous writings, untlerstantlings, agreements, solicitations, documents and representations, expressed or implied. Any terms and conditions of any purchase order or other documents submitletl by Lessee in connection with this Agreement which are in addition to ar inconsistent with the terms and conditions of this Agreement will not be binding on Lessor and will not apply to this Agreement. 1I. JURY TRIAL WAIVER. THE PARTIES TO THIS AGREEMENT HEREBY UNCONDITIONALLY WAIVE, IN A KNOWING AND INTENTIONAL MANNER, THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANV CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR INDIRECTLY, THIS AGREEMENT OR RELATED DOCUMENTS, ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER HEREOF OR ANV RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN THEM. 18. RETURN OF EQUIPMENT. If Lessor is entitled to obtain possession of any Equipment or if Lessee is obligatetl at any time to return any Equipment, then (a) title to the Equipment shall vest in Lessor immediately upon Lessor's notice thereof to Lessee, antl (b) Lessee shall, at its sole expense and risk, immediately de-install, disassemble, pack, crate, insure antl return the Equipment to Lessor (all in accordance with applicable intlustry stantlartls) at any location in the continental United Slates selected by Lessor. Such Equipment shall be in the same condition as when received by Lessee (ordinary wear and tear excepted), shall be in good operating order and maintenance as required hereby, shall be free and clear of any liens (except Lessor's lien) and shall comply with all applicable laws and regulations. Until Equipment is returned as required above, all terms of this Agreement shall remain in full force and effect including, wnhout limitation, Lessee's obligation to pay Lease Payments and to insure the Equipment. 19. OTHER DOCUMENTS In connection with the execution of this Agreement, Lessee shall cause to be delivered to Lessor (i) an Acceptance Certificate substantially in the form attached hereto as Attachment A; (ii) a certified copy of Lessee's Authorizing Resolution substantially in the form attached hereto as Attachment B, (iii) a Verification of Insurance substantially in the form attached hereto, (iv) an opinion of Lessee's counsel substantially in the form attached hereto as Attachment C, (v) a form 8038 G or 8038 GC as required under the Code, and (vi) any other documents or items required by Lessor. Z0. APPLICABLE LAW. This Agreement shall be governed by and construed in accordance with the laws, excluding the laws relating to the choice of law, of the State. Lessee: Lessor KERR COUNTY, TEXAS Caterpillar Financial Services Corporation ,.1' r Signature: By; Pat Tinley Print Name ~... Title: O~ 'yG9 '~ ~ e S'7 ~99coUN~ ~~ ~~ f Signature. sy: Print Name ATTACHMENT A ACCEPTANCE CERTIFICATE This Acceptance Certificate is executed and delivered by KERB COUNTY, TEXAS ("Lessee") in connection with the Governmental Equipment Lease-Purchase Agreement dated as of (the "Agreement"), between Lessee and Caterpillar 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: I NEW 420D Caterpillar Backhoe Loader FDP24569 has been delivered to it, and has been inspected by it, and is in 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 irrevocably accepts said items of Equipment "as-is, where-is" for all purposes of the Agreement as of the Acceptance Date set forth below. 3. The Equipment will be located at: 700 MAIN ST RM 103 KERRVILLE TX 78028 KERR 4. The Acceptance Date is Dated: ~~` o~ I 'oZ ~Q Lessee: KERR COUNTY~TEXAjS Signature: _ / /~ gy. Pat Tin~liey Print Name Title: Kerr County ~~~~ ~i~C~~4d~'~11 ~~~ ATTACHMENTA ACCEPTANCE CERTIFICATE This Acceptance Certificate is executed and delivered by KERR COUNTY, TEXAS ("Lessee") in connection with the Governmental Equipment Lease-Purchase Agreement dated as of (the "Agreement"), between Lessee and Caterpillar Financial Services Corporation ("Lessor"). Lessee hereby certifies that: 1. Capitalized terms used herein and not defined herein shall have the meanings assigned to them in the Agreement. 2. The Equipment I NEW 420D Caterpillar Backhoe Loader FDP25626 has been delivered to it, and has been inspected by it, and is in 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 irrevocably accepts said items of Equipment "as-is, where-is" for all purposes of the Agreement as of the Acceptance Date set forth below. 3. The Equipment will be located aC 700 MAIN ST RM 103 KERRVILLE TX 78028 KERR 4. The Acceptance Date is Dated: tJ J' oc t -a DOI~ Lessee: KERR COUNTY, TEXAS Signature: By : Pat Tinl-i-n l~eV Print Name Title: Kerr County ~9~ ~• oG ~X I~ ~ Apr, ~~.+'``~(~i}~° 9 C~UNj~ ATTACHMENTB LESSEE'S AUTHORIZING RESOLUTION Whereas, KERR COUNTY, TEXAS (the "Governmental Entity"), a body politic and corporate duly organized and existing as a political subdivision, municipal corporation or similar public entity of the State of Texas (the "State"), is authorized by the laws of the State to purchase, acquire and lease personal property for [he benefit of the Governmental Entity and its inhabitants and to enter into contracts with respect thereto; and Whereas, in order to acquire such equipment, the Governmental Entity proposes to enter into alease-purchase transaction pursuant to that certain Governmental Equipment Lease-Purchase Agreement (the "Agreement") with Caterpillar Financial Services Corporation, the form of which has been presented to the governing body of the Governmental Entity at this meeting; Now, Therefore, Be [[ And Il Is Hereby Resolved: Section I . Approval of Documents. The form, terms and provisions of the Agreement and all other schedules and exhibits attached [hereto are hereby approved in substantially the form presented at this meeting, with such insertions, omissions and changes as shall be approved by counsel of [he Governmental Entity or other members of the governing body of the Governmental Entity executing the same, the execution of such documents being conclusive evidence of such approval; and the persons holding the titles listed below or any other officer of the Governmental Entity who shall have the power to execute contracts on its behalf are hereby authorized and directed to execute, acknowledge, countersign and deliver the Agreement and all exhibits attached thereto, and the Secretary/Clerk of the Governmental Entity is hereby authorized [o attest to the foregoing and affix the seal of the Governmental Entity to such documents. Section 2. Other Actions Authorized. The officers and employees of the Governmental Entity shall take all action necessary or reasonably required by the parties to the Agreement to carry out, give effect [o and consummate the transactions contemplated thereby and to take all action necessary in conformity therewith, including, without limitation, the execution and delivery of any closing and other documents required [o be delivered in connection with the Agreement. Section 3. No General Liability. Nothing contained in this Resolution, the Agreement, or any other instrument shall be construed with respect [o the Governmental Entity as incurring a pecuniary liability or charge upon the general credit of the Governmental Emity or against its taxing power, nor shall [he breach of any agreetnen[ contained in this Resolution, the Agreement, or any other instrument or document executed in connection therewith impose any pecuniary liability upon the Governmental Entity or any charge upon its general credit or against its taxing power, except to the extent that the payments payable under the Agreement are special limited obligations of the Governmental Entity as provided in the Agreement. Section 4. Authorized Signatories. Following are the true names, correct titles and specimen signatures of the incumbent officers referred to in the foregoing resolution: Name (Print or Type) Pat Tinley Title (Print or Type) Signature Kerr County Judge Section 5. Effective Date. This Resolution shall be effective immediately upon its ap royal and adoption. This Resolution was adopted and ap roved on //~~ (~ ~ ~ ~,~SSIONEgS Signature: M~./ [.L ,~~1AYh.~,>~ti , A~.Q~'{tt,~l to G'O cretary /Cler- ~U ~ + G CHEHYLA. THOMPSON, Ikpufy U 1'~9 Name Printed: ~i -1 1 s Date: 0 ~' a / ' a2 D Q b stn ! Gj 9~_._~!`~iP IIII~h~,~R~'~11111 ATTACHMENT C OPINION OF LESSEE'S COUNSEL (Please Furnish this Text on Attorney's Letterhead) Date: Lessor: Caterpillar Financial Services Corporation 2120 West End Avenue Nashville, TN 37203-0001 Re: Governmental Equipment Lease-Purchase Agreement dated as of , by and between KERR COUNTY, TEXAS and Lessor. Ladies and Gentlemen 1 have acted as counsel to Lessee in connection with the execution and delivery by Lessee of the Governmental Equipment Lease-Purchase Agreement described above, and all related exhibits, attachments and other documents necessary to consummate the transactions contemplated therein (collectively, the foregoing is referred to as the "Lease"). Based upon the foregoing examination and upon an examination of such other documents, records, and certificates and having made such other investigation as I consider necessary to render the opinions herein, 1 am of the opinion that: I. Lessee is a duly organized and legally existing as a political subdivision under the Constitution and laws of the State of Texas (the "State") with full power and authority to enter into the Lease and to carry out its obligations thereunder and [he transactions contemplated thereby. 2. The Lease has been duly authorized, executed and delivered by Lessee and, asswning due authorization, execution and delivery [hereof by Lessor, constitutes the legal, valid and binding obligation of Lessee, enforceable against Lessee in accordance with its terms, subject to any applicable bankruptcy, insolvency, moratorium or other laws or equitable principles affecting the enforcement of creditors' rights generally, and does not violate any judgment, order, law or regulation applicable to Lessee. 3. No litigation or proceeding is pending or, to the best of my knowledge, threatened to restrain or enjoin the execution, delivery or performance by Lessee of the Lease or in any way to contest the validity of the Lease, to contest or question the creation or existence of Lessee or its governing body or the authority or ability of Lessee to execute or deliver the Lease or to comply with or perform its obligations thereunder. There is no litigation pending or, to the best of my knowledge, threatened that seeks to or could restrain or enjoin Lessee from annually appropriating sufficient funds to pay the Lease Payments (as defined in the Lease) or other amounts contemplated by the Lease. 4. The authorization, approval and execution of the Lease and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all applicable open meeting, public records, public bidding and all other laws, rules and regulations of the State. The appropriation of moneys to pay the Lease Payments coming due under the Lease does not and will not result in the violation of any constitutional, statutory or other limitation relating to the manner, form or amount of indebtedness which may be incurred by Lessee. 5. The Lessee is within the meaning of Section 103 of the Internal Revenue Code of 1986, as amended, and Treasury Regulations and Rulings related thereto, a state or fidly constituted political subdivision or agency of a state. The portion of Lease Payments made by Lessee identified as the interest component thereof will not be includible as Federal gross income under applicable statutes, regulations, court decisions and rulings existing on [he date of this opinion is not an item of tax preference and consequently will be exempt from present Federal inoome lases except to the extent taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. Very truly yours, type name and title under signature 1~ YA 1hYiiLM5W~4~~ ~~~ Amendment No. ] to Governmental Equipment Lease-Purchase Agreement (For use with Texas Lessees in tax-exempt transactions) WHEREAS, Caterpillar Financial Services Corporation ("Lessor") and the political subdivision of the State of Texas named below ("Lessee) are parties to that certain Governmental Equipment Lease- Purchase Agreement (the "Agreement"), dated as of ;and WHEREAS, Lessor and Lessee have agreed to amend [he Agreement as provided herein. NOW THEREFORE, in consideration of [he mutual agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 1 Capitalized terms used herein and not defined herein shall have the meanings ascribed to [hem in the Agreement. 2. Paragraph 4 of the Agreement is amended and restated in its entirety to read as follows: ANNUAL RIGHT OF TERMINATION. Lessee may terminate this Agreement as of the last day of any calendar year during the term hereof by giving Lessor sixty (601 days prior written notice of its intent to terminate this Agreement (although the failure to give such notice shall not affect Lessee's right to terminate [his Agreement as provided herein). In [he event Lessee gives to Lessor such notice during the term hereof, Lessee shall, no later than the last day of such calendar year (the "Return Date"), return to Lessor all, but not less than all, of the Equipment, at Lessee's sole expense, in accordance with Paragraph 18, and this Agreement shall terminate on the Return Date. Thereafter, Lessee shall not incur any additional obligations hereunder, provided, that, Lessee shall pay all Lease Payments and other Payments due prior to the Return Date and, provided further, that Lessee shall pay month-lo-month rent at the rate set forth above for each month or par[ thereof that Lessee fails to return the Equipment. 3. Except as amended hereby, [he Agreement remains in full force and effect and enforceable in accordance with its terms. This amendment set forth herein shall be effective as of the date hereof. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers duly authorized thereto as of the date of the Agreement set forth above. Caterpillar Financial Services Corporation Name: Title: 9~ s"saiao~l~a.,,„ KERR COUNTY, TEXAS CATERPILLAR FINANCIAL SERVICES CORPORATION HOLTTEXAS,LTD. HOLT AVE @ SOUTH W W WHITE RD P.O. BOX 207916 SAN ANTONIO TX 782207916 Reference: KERR COUNTY, TEXAS We are requesting a copy of the minutes of the appropriation meeting during which the funds for this deal were allocated. A copy of this information is necessary [o complete the documentation package and to fund the deal. Your ability to return a complete package will ensure timely payment to you. Thank you for your assistance. CATERPILLAR FINANCIAL SERVICES CORPORATION DOCUMENTATION DEPARTMENT 1~~~ ~ ~~~~~'~~ ~~~ Form $~3$-G ~ Information Return for Tax-Exempt Governmental Obligations - Under Internal Revenue Code section 149(e) OnnB No. 1545-o7zo (Rev. November 2000) - See separate Instructions. Department or Ibe Treasury Caution: I( [he issue rice is under 8700,000, use Form 8038-GC. Internal Revenue service P • On.....l i.••. /1 ul6..~il., If /1 rv.n..•Ind ~nn.••. rL.nnL 4.n.n \ -I 1 Issuer's name 2 Issuer's employer identification number 3 Number and street (or P.O. box if mail is no[ tlelivered [o street address) Room/suite 4 Report number 3 5 City, [own, or post office, state, and ZIP code 6 Date of issue 7 Name of issue 8 CUSIP number 9 Name and title of officer or legal representative whom [he IRS may call for more information 10 Telephone number of officer or legal representative 1 ) 11 12 13 14 15 16 17 18 19 Type of Issue (check applicable box(es) and enter the issue price) See instructions and attach schedule ^ Education 11 ^ Health and hospital 12 ^ Transportation 13 ^ Public safety. 14 ^ Environment (including sewage bonds) 15 ^ Housing 16 ^ Utilities 17 ^ Other. Describe - If obligations are TANS or RANs, check box - ^ If obligations are BANS, check box - (a) Final maturity tlate (b) Issue price k) 5[atetl retlemption (tl) Weightetl price at maturity average maturity 27 $ $ ye Uses of Proceeds of Bond Issue (including underwriters' discount) 22 Proceeds used for accrued interest 23 Issue price of entire issue (enter amount from line 21, column (b)) . 24 Proceeds used for bond issuance costs (including underwriters' discount) 24 25 Proceeds used for credit enhancement . 25 26 Proceeds allocated to reasonably required reserve or replacement fund 26 27 Proceeds used to currently refund prior issues 27 28 Proceeds used to advance refund prior issues 2a 29 Total (add lines 24 through 28) . 30 Nonrefundin roceeds of the issue (subtract line 29 from line 23 and enter amount here) . Description of Refunded Bonds (Complete this part only for refunding bond 31 Enter the remaining weighted average maturity of the bonds to be currently refunded - 32 Enter the remaining weighted average maturity of the bonds to be advance refunded - 33 Enter the last date on which the refunded bonds will be called . - le) Vield years 35 Enter [he amount of the state volume cap allocated to the issue under section 141(b)(5) 3s 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (see instructions) 36a b Enter the final maturity date of the guaranteed investment contract - 37 Pooled financings: a Proceeds of this issue that are to be used to make loans to other governmental units 37a b If this issue is a loan made from the proceeds of another tax-exempt issue, check box - ^ and enter the name of the issuer - and the date of the issue - 38 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box - ^ 39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box - ^ 40 If [he issuer has identified a hedge, check box - ^ . . . . . . . . . . . . . . . . . . . . . . . Untler penalties of perjury, I tledare that I have examined [his return and accompanying schetlules antl statements, antl to [he best of my knowledge and belief. [hey are true, correct, and complete. Sign ' Here _ ,,, ~-, .,,,,,~ .,__ m Date For Paperwork Reduction Act Notice, see page 2 of the Instructions. ~ Type or poor name Cat. No. 63773S Form 8038-G (Rev. 17-20001 Physical Damage Insurance Coverage Information (Customer Copvl Before financing your equipment, you must arrange physical damage insurance on the equipment identified below. The insurance may be provided through an insurance agent or insurance company of your choice, provided the insurance company satisfies minimwn financial requirements. As an alternative to obtaining your own insurance, you may elect to have your equipment insured under coverage arranged by Caterpillar Insurance Services Corporation that has been designed specifically for the purchasers of Caterpillar equipment and issued to your Caterpillar Dealer and Caterpillar Financial Services Corporation by Caterpillar Insurance Company. I hereby request and apply for information and a quote for physical damage insurance from Caterpillar Insurance Services Corporation for the following equipment in [he following manner: Model # Serial # Equipment Description Value Includin>; Tax Pymt Method-1 Total Premium Pymt Method-2 Finance Pymt A. 420D Caterpillar Backhoe Loader $71,935.00 $4,531.90 $86.25 FDP?4569 8. 420D Caterpillar Backhoe Loader $71,935 f10 $4,531 90 $8625 FDP?5626 C. D. C~-r>_~~ anaron nlav Authorized Insurance Producer Policy Summary Please note: This is only a brief description of the Physical Damage Program. Contractual provisions contained in the policy will govern. Coveraee Caterpillar Physical Damage Insurance protects your equipment against physical damage losses, including collision, fire, theft, vandalism, upset or overturn, Floods, sinking, earthquakes and other unfortunate acts of nature. 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 Insurance does include normal exclusions. The exclusions included are wear and tear, rust, loss of income, war, nuclear damage, and mechanical breakdown, automobiles, watercraft, waterborne shipments, tires or tubes damaged by blow-out, puncture, and road damage. Repairs When a covered loss occurs, this plan will pay for Caterpillar replacement parts on all your new or used Caterpillar equipment. On all non-Caterpillar equipment, the plan will pay for comparable replacement parts. PonnMNLo.~CyIgSCI~CISF-Ii0~4yDealer Code LI40 918459 OJII6R006 9.11 PMC'I' 1~~~ tlf.1h;Y1~Vl1~YtlYC~ Transportation Your Caterpillar plan will pay for round-trip transportation of covered damaged equipment to and from your Caterpillar dealer's repair facility, up to $2,500 limit. Rental The plan allows for rental costs up to $2,500 that you incur to rent similar equipment following a covered loss. You are automatically protected with up to $100,000 of coverage for damage [o the similar equipment you rent. Claims In the event of a total loss, [he 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 property; or - The cost of replacing that property with property of like kind and quality; or The policy will 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 Construction and Agricultural Equipment Deductibles: $10,000 deductible all logging Equipment Customer Service If you have any questions or need additional details, see your Authorized Cat Dealer or call Cat Insurance toll free at 1-80U-248-4228. You may also e-mail Cat Insurance at Cat.Insurance(ticatcom. 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 [o all terms, conditions 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(I) of the Terrorism Risk Insurance Act of 2002 (the Act), are partially reimbursed by the United States of America. The term "act of terrorism" means any act that is certified by [he Secretary of the Treasury, in concurrence with the Secretary of Stale, and [he Attorney General of the United States - to be an act of terrorism; [o be a violent act or an ac[ that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United Stales mission; and to have been committed by an individual or individuals acting on behalf of any 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 affect 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 February 24, 2003, the above disclosure, modified to reflect your purchase of coverage, will be set forth in an endorsement to your policy. Farm Na~CI~SCICSF-I/04 Dceler Code EI4U v16454 VI/162U064.11 PMCT 1I ~ h~ I~~t~11 APPLICATION FOR PHYSICAL DAMAGE INSURANCE COVERAGE (Return with Equipment Documents) Model N Equipment Description Value Pymt Method-I Pymt Method-2 Serial q Including Tax Total Premium Finance Pymt A. 420D Catepillar Backhce Wader $77,935.00 $4,531.90 $86.25 FDP24569 B. 420D Caterpillar Backhoe Wader $77,Y35.00 $4,53190 $86.25 FDP25626 D. -_~_~~, Sharon Blair, Authorized Insurance Producer Option A Arranged by Caterpillar Insurance Services Corporation Ca(erpi/tar lnsurmrce Services Corporation wit/ receive comprnsallon from Caterpillar /ttsurancr Company wrth p/acrnaenr ofcoverage I understand that [he total insurance premium for 60 months will be $9,063.81, which is $1,812.76 per year based upon the total equipment value of $143,870A0. Method 1 ^ 1 will finance the insurance premium, including finance charges, of $172.50 per scheduled equipment payment. The finance charge is calculated at 5.35% per annum on the total insurance premium covering the full term of the finance agreement. Method 2 ^ 1 desire coverage for an initial 12 month term. I will pay the $1,812.76 premium and return the payment I understand that the quote I receive is not a binder of insurance. If I elect to obtain coverage from Caterpillar Insurance Services Corporation, coverage will be effective in accordance with the terms and conditions of the issued Policy and that 1 may terminate [he coverage at any time with advance written notice. I acknowledge that 1 have been notified that, under the TERRORISM RISK INSURANCE ACT of 2002, any losses caused by certified acts of terrorism under my policy will result in coverage under my policy that will be partially reimbursed by the United States as outlined in the attached policyholder disclosure notification. Customer Name: KERR COUNTY, TEXAS Dealer Name: HOLT TEXAS, LTD. Fraud Warnine: Afl states other than: OH, VA, L.A, NE, UK. UR, m VT, Any person who knowingly and with intent to defaud any insurance company or other person files an application fur insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading, information concerning any fact materiel thereto, commits a fraudulent insurance act, which is a crime and shall also be subject to a civil penalties (In DC, ME, and TN, insurance benefits may also be denied.) In OH: Any person who, with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement is guilty of insurance fraud. In VA: It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties include imprisonment, fines and denial of insurance benefits. Please note: If you have any questions or need additional details, please contact I-800-248-4228. In addition, if you would like a no obligation quote on your additional equipment, call Sharon Blair at 1-800-248-4228 ex[. 8121. Accepted By' Print Name: with the signed equipment documents. Please make check payable to Caterpillar Insurance Company. Method 3 ^ 1 will pay the total premium and return [he payment with the signed equipment documents. Please make check payable to Caterpillar Insurance Company. Title: Form~Nya~CI~SlQCS11'~-1J/04 neakr C°dbiad P c ving, constnS~d by Caierp defect.. become Cater Nler a ce wN earthma , urwarranty• Sae your oorrecltha u{fder this watsahfY wAflowma a `~ h~difrv9 machonlhl 500 mpleie Ustrn9 of covered rePtaCad stored at hav,ng, 12 m r for a No Cate" and for failures resuflin9 te: Iteara eeze, CatarpAfar deale cements. fn such the PrdpettY of ell,. fitters,. an{'drha defect. y'anitationsrs not rasp°nsibla Caterp s reps w R ,eating itler wmode ermines used a riot to laae lubr made unusable by ~ a P I 9 rch C ter iQar u roduct• such maatrinas P Ipiark oche[ service ifan's tabor needed m'. by othe w AnY use o installation '~` Caterp~n installed oa by the CaterplAaarrother customary new r arts not sold tad t or except fn the case of a er. `,~ w Atlachma unless cove statemen ~ provide ~ t~ d ~~and tolled y ,m4 n P delivery cWU ~5{y~~ntY1, ka a is to la~mant en9r d a~inorttsou~ ~ arao~p it roP acces$Dry Hems a d s i Tool manufa agar bb ~ ~%~ rep a Caterpigar labor is pm the user's w Attachment , a erPittarp ~ P r. warranty than case,. is or aPFrevad by C t r re ai addttional b1e CaterpiNar. 1n this and mstaitatbn {act and/or,m r° after pa only, and remo`1af aRPkcab~ Ie certain r io Ih aPPfrca weir ibdttY • w Abuse, nag the product avaiVabla yrr mak,n0 roduct robtem~ Engaging Too~w;Raage data8, rand tarpons p R tarPiffaich era Usk ResP°asrb ~~fa for. w UsePs delay of a Potenl'ral and statemantto to Ca ustmems, user fs respo date to the first pein9 notdrad or sd'} wanao~y Cs~s ,%araW rk 'fools ~ The detiven` rized repair igar warrardias. roof of {ha w Unautho fual setting ciran9as. dye ~ by other G arP „rin9- w Providing P orized {he Mgo with transPcdin9 the unautl' user. This warranty is suhlact to vyrse side...) )J wananH wTh casts associated r ~cenrin/ue/d0nre / /J~~ Jij,~ {NarrrintY ~c~j{,~es alrtt Dolt ~5p0 operating hours, ~{uct. stated under "CaterPitfa ~ / ~ 2~`' '/ ~( J perloa ~ 12 ~B f rss, date of delivery ~b except as { stadin0 from or costs, - ~jysr.~ wfrichevtr oca Responsibffnles". ~-~~. to the first user. SE1F5287 ~ t~f/,~sy,~~.~1~`J~~~- L..~~ ~ ~<~~/°" ~ r~~`f~~~ E//edive with sales ro the first user on or after Maroh 1, 1999 CATERPILLAR WARRANTY Earthmoving, Construction, and Material Handling Machines For Selected Models Designated by Caterpillar With 12 Month/1500 Wour Warranty (USA & Canada) CaterpiXar warrants the following products sold by it end operating within the geographic area serviced by authorized USA and Canadian Caterpillar dealers to be free from defects in material and workmanship. (In other areas different warranties may appy. Copies of applicable warranties may be obtained by writing to Caterpi8ar Inc., 109 N. E. Adams St., Peoria, 1L USA 81829-3345.) w New eadhmoving, constnrction, and material handling machines designated by Caterp8lar as having a 12 month/1500 hour warranty. See your Caterpillar dealer for a complete listing of covered models. whew engines used as replacements. in Bach Cateryl8ar product '. wAttachments insta8ed on such machuras prior to delivery (unless covered by the Caterpi8ar Work Tool warranty statement or '. another manufacturer's wamaMy). An add8ional warranty against ''breakage is applicable to certain Caterpi8ar brarM', Ground. Engaging Tools. Refer to the app8cable'warrarty statement for coverage detail This warranty does not apply to Caterpillar brand batteries or Caterpi8ar Work Tools which are covered by other Caterpi8ar wanantes. This warranty is subject to the following: Warranty Period For new machines and attachments, the warranty period is 12 months or 1500 operating hours, whichever occurs first, starting from date of delivery to the first user. For new replacement engines, the warranty period wLocal taxes, if applicable. is 6 months, starting from date of delivery to the first user. Caterpillar Responsibilkles If a defect in material or workmanship is found during the warranty period, Caterpi8ar wi8, during normal working hours and at a place of businesspf a Caterpi8ar dealer or other source approved ".by. Caterpillar. w Provide (at Caterpi8ar's choice) new, Remanufactured-,. or Caterpi8ar-approved'-re,patred parts. or assembled components needed to corredithedefect:. Note: :Items replaced under this wartanty become the-property of Caterpi8ar. ' wReplace lubricating o11, fibers, antifreeze, and other service Jiems made unusable by the defect. w'Provide reasonable and customary labor needed fo correct the defect, except in the case of a new replacement engine odgina8y insta8ed by other than a Caterpillar dealer or source approved 6y Cateryi8ar. In this case, labor is limited to repair anty, and removal and installation is the user's responsibil8y. User Responsibilkies The user is responsible for: w Providing proof of the delivery date to the first user. w The casts associated with transporting the product. wLabor costs, except as stated under "Caterpillar Responsibi8ties". wPatts shipping charges in excess of those which are usual and customary. w Costs. to investgate complaints, unless the problem is caused by a defect in Caterpillar material or workmanship. wGiving timety notice of a warrantable failure and promptty making the product available for repair. W Performance of the required maintenance (mcludrng'.use of proper fuel, oil, lubricants and cootagt)=and;roplacement of items due to normal wear antl tear. w Allowing Caterpi8ar access to all electronically stored data. Limitations Caterpillar is not responsible for failures resuking from: wAny use or installation which Caterpillar judges improper. wAttachments, accessory items and parts not sold or approved by Caterpillar. wAbuse, neglect and/ar improper repair. w User's delay in making the product available after being notified of a potential product problem. w Unauthorized repair or adjustments, and unauthorized fuel setting changes. (continued on reverse side...) SELF5287 ,~ / / %6~ U / ~ HOLT COMPANY OF TEXAS TOTAL MACHINE VALUE ASSURANCE EXTENDED WARRANTY Wmrattty is offered by HOLT CAT OR CAT INSURANCE WARRANTY. These gttarantces apply to: Caterpillar model 420D S/N FDP25626 Delivered to KERR COUNTY ROAD & BRIDGE Delivery date Dealer provides the following guarantees on this registered Caterpillar machine from the date of initial delivery a~ expiring when the machine reaches 60 months from that date, or 7500 hours, whichever occurs first. TOTAL MACHINE WARRANTY This machine is warranted to be free from defects in material and workmanship during the life of the warranty period. This warranty is limited to repair or replacemem (includmg both pans and labor) of inspected parts determined to hate been defective in material or workmanship. An authorized Caterpillar Dealer must perform all warranty repairs. Customer shall pay all machine transportation costs or Geld service travel expenses to and from this location. This warta~y does not apply to normal maintenance service (such as engine tune-up) or normal replacement or service or wear items. GENERAL CONDITIONS AND LIMITATIONS (continued) Machines, which have been substantially damaged by collision, accident, flood, £tre. vandalism, or similaz occurrence, are not covered. Delays resulting from strikes (Caterpillar, dealer, supplier, or carrier), acts of God or other occurrences beyond dealer's reasonable control are not covered. Failure by owner or op~a[or to perform required service and maintenance as defined by Manufacturer's W atranty, voids coverage on said equipment. Machine transportation cost to and from the designated facilit}~ will be the customer's responsibility. These guazantees are made by [he named Caterpolaz dealer exclusively and are not binding on Caterpillar htc, or any other Caterpillar dealer. Caterpillaz Inc. conducts Product [mprovement Programs to improve machines sold to users. In the event a machine enrolled in "VA" is subject to such a program the extended warranty will not apply to that improvement; however Dealer v~~ll endeavor to schedule such product improvemem at the user's convenience. Holt Scheduled Oil Sampling (SOS) is included at no charge with this warranty. You are responsible for taking oil samples and rehaning them [o Holt at the intervals designated on this form or you will forfeit your coverage under this 1united warranty -(customer initial) OIL SAMPLING PROCEDURES Engine 250hrs All other twmpartrnetrts 500hrs GENERAL CONDITIONS AND LIMITATIONS Replacement pans provided aze warranted for the remainder of the warranty period to the product in which installed. The machine map not be altered or modifted in any manner, which affects the mechanical operations as designated by Caterpillaz Inc. Machine repairs necessitated by misuse, abuse, negligence, or use of the machine beyond its rated capacities aze not covered REMEDIES UNDER THE WARRANTY ARE LIMITED TO REPAIRS SPECIFICALLY PROVIDED. DEALER SHALL IN NO EVENT BE LIABLE FOR ANY OTHER LOSSES, DAMAGES, COSTS, OR EXPENSES CLAIMED BY YOU, INCLUDING BUT NOT LIMITED TO: LOSS FROM FAILURE OF THE MACHINE TO OPERATE FOR ANY PERIOD OF TIME, AND ALL OTHER INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES INCLUDING ALL PERSONAL INJURY AND PROPERTY DAMAGE DUE TO ALLEGED NEGLIGENCE. STRFCT LIABILITY OR ANY OTHER LEGAL THEORY WHATSOEVER. THE WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES BY DEALER WHETHER EXPRESSED OR IMPLIED BY LAW WITHOUT LIMITED THE GENERALITY OF THE FOREGOING, DEALER MAKES NO WARRANTY OR MERCHANTABILITY OR FITNESS OF THE MACHINE FOR ANY PARTICULAR PURPOSE. I understand and agree with the above stated "VA" Total Machine Warrant}• Date ~ ~a / Signature Date Holt Company Authorized Signature HOLT COMPANY OF TEXAS TOTAL MACHINE VALUE ASSURANCE EXTENDED WARRANTY Warranty is offered by HOLT CAT OR CAT INSURANCE WARRANTY. These guaramees apply to: Caterpillar model 420D S/N FDP24569 Delivered to KERR COUNTY ROAD & BRIDGE Delivery date Dealer provides the following guazamces on this registered Caterpillaz machine from the date of initial delivery and expiring when the machine reaches f~0 months from that date, or 750D hours, whichever occurs fast. GENERAL CONDITIONS AND LIMITATIONS (continued) Machines, which have been substantially damaged by collision accidene, flood, fire, vandalism, or similar occurrence, are not covered. Delays resulting from strikes (Caterpillar, dealer, supplier, or tamer), acts of God or other occurrences beyond dealer's reasonable control are not covered. Failure by owrrer or operator to-perfoan required service and maintenance as defined by Maeufadurer's Warranty, voids coverage on said equipment. TOTAL MACHINE WARRANTY This machine is warranted to be free from defects in material and workmanship during the life of the warranty period. This warmnty is limited to repay or repLmement (including both parts and labor) of inspected parts ddermined to have been defective in material or workmanship. An authorized Caterpillar Dealer must perform all warranty repairs. Customer shall pay all machine transportation costs or &eld service travel expenses to and from this location. This warranty does not apply to normal maintenance sen ice (such as engine tune-up) or normal replacement or service or wear items. Holt Scheduled Oil Sampling (SOS) is included at no charge with this warranty. You are responsible for taking oil samples and returning them to Holt at the intervals designated on this form or you will forfeit }roru coverage under this limited warranty. -(customer initial) OlL SAMPLING PROCEDURES Engine 250hrs AN other compartrrrents 500hrs GENERAL CONDITIONS AND LIMITATIONS Replacemeat parts provided are warranted for the remainder of the warranty period to the product in which installed. The machine may trot be altered or modified in any manner, which affects the mechanical operations as designated by Caterpillar Inc. Machine repairs necessitated by misuse, abuse, negligence, or use of the machine beyond its rated capacities are not covered Machnve transportation cos[ to and from the designated facility will be the customer's respatsibility. These guarantees are made by the named Caterpillar dealer exclusively and are not bindingon Caterpillar Inc. or any other Caterpillar dealer. Caterpitlaz Inc. conducts Product Improvement Programs to improve machines sold to users. In the event a machine enrolled in "VA" is subject to such a program the extended warranty will not apply to that improvement; however Dealer mill endeavor to schedule such product improvement at the user's convenience. REMEDIES UNDER THE WARRANTY ARE LIMITED TO REPAIRS SPECIFICALLY PROVIDED. DEALER SHALL IN NO EVENT BE LIABLE FOR ANY 07HER LOSSES, DAMAGES, COSTS, OR EXPENSES CLAIMED BY YOU, INCLUDING BUT NOT LIMITED TO: LOSS FROM FAILURE OF THE MACHINE TO OPERATE FOR ANY PERIOD OF TIME, AND ALL OTHER INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES INCLUDING ALL PERSONAL INJiJRY AND PROPERTY DAMAGE DUE TO ALLEGED NEGLIGENCE, STRICT LIABILITY OR ANY OTHER LEGAL THEORY WHATSOEVER. THE WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES BY DEALER WHETHER EXPRESSED OR IMPLIED BY LAW WITHOUT LIMITED THE GENERALITY OF THE FOREGOING. DEALER MAKES NO WARRANTY OR MERCHANTABILITY OR FITNESS OF THE MACHINE FOR ANY PARTICULAR PURPOSE. I understand and agree with the above stated "VA"Total Machine Warrants Dace 3 ~~-~ Hoh Company Authorized Signature Date