ORDER NO. 30356 USE OF ROAD AND BRIDGE SURPLUS FUNDS FROM ITEMS SOLD ON E- BAY Came to be heard this the 9th day of July, 2007, with a motion made by Commissioner Baldwin, seconded by Commissioner Letr. The Court unanimously approved by vote of 4-0-0 to: Approve payment of the Note on the Zipper in the amount of $28,987.89, purchase of a FEMA Surplus Mobile Home for Ingram Yard Office in the amount of $8,000.00 and the cost of moving the mobile home. 30356 1.4 Consider, discuss,a nd take appropriate action concerning use of Road & Bridge surplus funds from itemms sold on E-bay. Leonard Odom July 9, 2007 ~ ~- r~F '__J~~_.. " l `` T. 1 ~.~''; •.w1 I~ 1 (1K .r~ry ~.I ~t,2`t fr ~ ~, a .., ' AA~S~S~. ~~i~.~s~ ~.,.~: is 11 li ~E-'',,'E ~-.ll'• L:, _.:.. '- ~f •, \~- ~j ''~l~l• `~~. k~ l it, iii':. (_ ~} L. ~._ L~. _,..Lt ;. 4-1LLC yy }.. lp'.. tr:i.. 1. ... .~ -. _ ?'}` .I ,~.~,_. . I ~i !`. :l ,Ili a I~ i.. '~! ~dl~ htil'- ti:~ t .. E.i~. ,~' ..~ ~ ,., ti~ ,~.. _~ .,...i..,.. . . ol: _~. i 1 I_ ;. _ .. .. ._. _ F.3 rug, - .fC I~1LIIl ~z} ~k..'-~., f.r 1~~~ u - ~ a 1 ~~ -,, ,,-: i:I ~` :1_ ~ '47t$ .._'~ ~ .v.. _ .... it1 C:U;['.~ ,' i.lt~~3,1~~ ~~1L~t ;~:, 1 .., ,r~i°~ ~ltil~~', }1t' i i'_.., 11 ~L#~ ~ l.) ~`.~__"; .._:l} _ 'Y 9' CLw , ~ +~,' l fL lk ~`T"IL.L1 ~C'i1~. 0.` ~~i ~. `4 C., L"~r ~[!4'~~ 'l .: . , ~~lG't'~_ .E ~,j~~.`'I .;i,:~,.. ~~ ,~ `~ Ii [1'-,~ ~I n •''i_i~l.'. ~ !c. .1 ~~1. `\ - tc~ I`^s \f[17~1~~. ~~~~~~t~,_~,f ., ., „ , , ~ I„,~~~ .~~I =t.I~ _ .._ ,~. :. ~.~~ ~....~~~..:} ,..~~ ~~~~~'. ~,.~~,r~ ~~.: ~~t)tIC~i3L~~ I~~LI~ I,~ ,r ~'.~~':~ - It ., ~~.a ~Ft.~t.:l.:-; '.I~~ ~T$t~}~11~ !«raTa~ r'~9~~3 ~iti.~~'~~{},4}fl ~~i,-stl ~ii~ ~LIi'~'7~d.~'~ ~4.~1?l~`. ~ t _ I~~; . . ' _ It€', .I ~R..- _-, '. _ _ ~ I e~`w'` ~°~ G:' ~ __ , i - .~_ '. 3~ '. '~~R lLfi,. i j .•>~_ r~, ~:, r~ , . - L7C z~ - F- C7 - ~. ct fP ~ _ -J ~ 1 ~ > •~ ~ ~ :1: ~ ~ i 4 R '" .~ 4JF.. ~ : ~ ~ ti~. ' ~ ~ -' -, _ ~- I _~ = ~ t®` ~~ ~~ ~ ~E ~ '~ PPP ~. '.. Y ~ ~~, 1 _ ~ f. ~~ r- t- c s - t era ua cv '~^S. .. i}'J .J ~. J~ .) °. tL'_. i~_• r-', ~ ~. ~. ' _ r-~ _ ~- ~~ 7~i 1 4"'3 c` a ;" t c'. > ~. 2 ~ [ °7 ~L .J r i 4L ~ ~ _~ ~ ',,. ~_ ~ ~ k c C"°k C`"7 ', ~I ~ '.. ~ ~ ~, ~y ~ _ y~r Z I - ~. / ~.""" 1~ . fJ lC> t,i'3 ~ 9 " i {~. ~- _,,~~ ~ _, , ~-- L , Wa ~ ~I a ._ ~, ~ r ~~ s ~ } L"7 L ry" r C~ C' ~"~~ ~: ~ .R. I. I T__ ~ ~ .- ..: ' ~ ~ ~ j K: s~ `. ~~ °` 3 €`- :) j ~' ~ {w ~, ~$.. _ Q.. y ~ l..L ""1 ~~ ~~ ~E~ ~ C ~. ~~ ~p ~.'~ ~~ ~ ~ ~ ' ;~ ~ , , a ~; '~ _ I ~: Cy ~..+ .- ~ ~-~ _`. ~ ~ ~ I.,. ~ - ~ ^L ~~ ~ ~- ,~~ ~ = 1 ~~ C' ~ !I j ~ s ~ ~ f E ~ ~ ~ ~ 1 ~ ~ ~ € I i @ ~ € w _=:ti ~~ -'r1 _~2' 4 -'E -~~: ....~ ~ Pi ~:__ ~M4A ~~ ,r ,. -~::~:; a ..,~- ~.. r` ~+ '-= ~ ~: ~~ ~~~_ ~. 'r=, -- ~' _. ~`N ~~ J."~ ~ ~^. .,~ Y_'t ~. ~~y ^ 1 ~. , "'~~^_ ,~ __ Y~I ,~~o~r~ ,; i s': ~~~ .~y e~ ~ " ~~ ~ I "~ f~= t I f , ~ ~F. ~•~i ~ ;~ ~; , r ~ .. ~ ~ ~ ,^~ ~ 3}. I . .. n H I , =. II.~ 14 Y ~ II ~ ~ +~ r I ~i . ~ ~t. _. ~~ ~r"~L _ h ~ 7 G ~ r ~ ........ L ~i ~~~:~, ~~; t II ~ F~ _- ~F G -.:~.r ~~ a'._7 ~. - ~ ;,-;t, '.l2 Jn. ~ o.~ ~ SECURITY STATE BANK & TRUST KERRVILLE 1130 JUNCTION HWY. KERRVILLE, TX 78028 PHONE (830) 895-2000 FAX (830)895-2012 October 29, 2007 Kerr County 700 Main St. Kerrville, TX 78028 P.O. Box 471 •201 West Main • Fredericksburg, TX 78624 (830) 997-7575 • Fax (830) 997-7994 www.ssbtexas.com ~;~ = 1 Re: UCC Financing Statement Dear Sir or Madam: In connection with your paid out Loan #40085 there is a UCC Financing Statement on file at the Secretary of State. Enclosed please find the Termination form that you can file with the Secretary of State's office to remove the filing, however; this would require you to pay a $15.00 filing fee. If you decide to mail out the form, please make the check payable to the Secretary of State UCC Section and mail out with the top page in the enclosed envelope. Should you decide not to terminate the UCC Financing Statement, it will remain on record at the Secretary of State's office and will expire on December 16, 2010. Also included with this letter is your laid Promissory Note. I would like to take this opportunity to thank you for your business. If you have any questions or if I can be of any assistance, please give me a call at (830) 895-2000. Sincerely, ~ ~~~ Theresa S. Treiber Loan Administration Enclosures: UCC Financing Statements Self-addressed envelope Fredericksburg • Kerrville • Harper • Kingsland • Marble Falls • Boerne • Comfort • Paleface • Blanco • Dripping Springs Lago Vista • Ingram • Canyon Lake MEMBER FDIC texas 10114J03 .~ LEASE WITH OPTION TO PURCHASE AGRtEMENT Kerr County 'Security State Bank 8~ Trust [ iOD~ T00 Main Street 1130 Junction Highway '7 Kerrville, Texas 78028 (` ~ ~;,,~,~ Kerrville, Texas 78028 Dated as of December 1, 2005 This Lease With Option b Purchase Agreement dated as d the date listed above is between Lessor and Lessee listed directly atwve. Lessor desires to finance the purchase of the EquptneM described in ExhibN `A` b Lessee and Lessee desires to flrartce the purchase of the Equipment from Lessor subject b the terms and cordNions of this Agreement wtddt are set forth below. I. Daflnitfons: Section 1.01. Definitions. The fdbwirg temts vNN have the meanings irdicabd below unless the contetd clearly requires otherwise: "AdditFonal Schrarurle" refers b the proper execution of additiorel Sdtedules to F_xtpbrt A. Exhibit B, EdtibN C and Exhibit E as welt as dher exhibits a dorxxne.Ms titat may be required by ttte lessor all d which relate b a lease d add'dionat Equipment. "Agreement` means tltis Lease with Option b Purchase Agreement and atl F_xttlblts atfactted ttereb. "Btsiget Year" means the Lessee's fiscal year. `Corrtrrartcerrrertt Rafe' is the date when Lessee's obligation b pay Terri begins. 'Egtripntent' means aA d the ikxns d EquipnterA Nsted on Exhibit `A` and aN replacements, restorations, modifications and irrtlxoverrtertts. 'Lessee' means Ole entty NNed above as Lessee and w#ticFt is leasktg the Equipment from Lessor under the proNSlons ~ this Agreemend. "Lessof means the entity orlgtrtally listed above ae Lessor or arty d its assignees. 'Lease Tenn" means the Original Term and all Renewal Temrs. `Orfgkal Temt` means the period fnom the Cormtartcemertt Date rntN the end d the 8udge4 Year d lessee. "Renewal Term' means the amual term which begins at the end d the Ortgirel Tenn and wfiktt is sirrtuNarteaus vim Lessee's Budget Year. 'Rental Paymerttg' means the payments Lessee is recxired b make older this Agreement as set forth on F~rhibq 'B". 'State- means the state in wtrdt Lessee ES beaded. IL Lessee Warrrarttles Sedbrt 2 01 Lessee retxaserNS. xarrartta and covenants as foNows for the benefit of Lessor or ~ assisptees: (a) Lessee as an issuer of tax exempt obligadiorts` because Lessee is the State or a polsrcal subdrwaort d the State wAhin the meanirg of Section 103(a) of the Internal Reverrre Coded 19B6, as anterded, (the Code' a berartse lessee is a oortstitirted autitorrty or disg'id arAttorized b issue obligations on behalf d the Stab or poCAbal sutdiHSiort d the Slade wtltdrt the meaning d Treasury Regulation 1.103-1(b). (b) Lessee Is autttoriaed under the t.;ortstitution and laws d the slate b enter inm ttds Agreement, and rtes used such authority to properly execute and deliver this Agreement. Lessee has bNavred all proper prooerkres d its govemirg body in exearting ttt~ AgreemerN. The Oftioer of Lessee ezectAing this AgreenterN flea the authority b execute ad deNvrv Ihhs Agreements. Tats Agreement cortsbirrtes a legal. vaMd. t~riing and ertbrceable obtigalfon d tite Lessee in accord~me with its terrr~. (c) t essee flea comgfed wink aN sladutory Yaws and regrAediorts that maybe appNcabte to the exerxtsbrt d this Agreement. (d) Lessee shah use the Equfpmartt only for essetttiat, tradtloral govemnterts purposes. (e) Sttoukl the IRS drsaNow the tax-exempt stahis of the ktterest Portion of the 12ental Payrrrenffi as a resuN of the faNree d the Lessee la use the Equipment br gowrrnterrtal purposes, then Lessee shall be required b pay additional sums b the liar or its assignees so as b bring Ole after tax yield b the same level as the Lessor ar tss assignees wottsd attain if the trensactiort conlirtrred b be ta>Fexempt. (f) Shetld the Lesttee cease b be an issuer d bor exempt obligations ar ff the obligation d Lessee created urd~ tills Agree+rterts ceases b be a tax etcempt obligation for any reason, then Lessee shah be required b pay additional arms b the Lessor or its assigrees so as b bring the after tau yield an tills Agreement b the same level as ttte Lessor a ilg assignees urrntsd attaht lithe Vartsactiort oortsirtued b betax-exempt. (g) Lessee flee rtcwer ran-appropriated fords under an Agneerrterts shrrNa b tlvs Agreemern. (h) L.easee wNl subndt b the Secretary d the Treasury an irtfornretiort reporting staternant as rerpired by the Code. (i) Upon request by Lessor, Lessee wiN provide Lessor whit crarent tirenclal statements, reports, budgets or other relevant fiscal ktsortratian. U) Lessee shah refarrt the Equipment free d any tatardotrs substatoes as defined en the Corrtpnetter-slMe Fmirurvrtertsal Response. Contpertsation and LiabNity Ad, 42 U.S.C. 9601 ~. sea, as arnertded and srrpplerrtertsed. (k) (.esaee presently intends b oontirtrre this Agreement br Ole Origirat Term and atl Renevral Terms as set forth on Extrbit "B" hereb. Ttte olficlal of Lessee responsible for budget preparatior- wiNtrtdude in the budget rearrest far each Brrdgat Year the Rental Payments b beaorrte due in such ~4 Year. and will Tree aN reasonable and lawful ntrats avaiable b seaae the apprapriatiort d matey far such &dget Year std6cierts b pay the Rental Paymens aomirg due therein. Lessee reasonably behieves that moneys can and w~ lawru9y be appropriated and made a~Yable br this purpose. Sedbn 2.D2. Escrow Agigemerts. In the event both Lessor and Lessee mrtsuaNy agree to utNrte an Escrow Aocarnt, then inxrtediadely fdlowirg the exeartion and delivery d this Agreement, Lessor and Lessee agree b execxrte and deNtrer and b cause Escrow Agent b exeatse and deNver life Escrow Agreement. Tfris Agreement shall take effect oily upon etcecutior- and delvery of the Fscriow Agreernetts by Ole parties Otcxeto. Lessor shati deposk or tause b be deposited vvfttt the Escrow agent far credK b the Equiprrterts Acquisition Fund the sum d ~V vNridt sheN be held, invested and dsbrrssd m aocordence w6Nr the Escrow Agreement. NL Aoqubitlat d Egrtspawrtt, RarMat Payrrnartb and the Purchase Optlon Price Section 3 Ot Aoatisi0ort and Acx7eptan - I.ESSee strati be eddy responsible for the ordering d the Egripnrterrt and for the delivery and insbNaliort d the Equipment. F_xeaNai d the Aooeptence CetmiCate try an artployiae, offal tx• agat d fie Lessee hawing managerial, supervisory a proarrerrteYtt auOtority vtttit rasped to the Equipmem shall oorts~tse aooe~artoe d Ore Equipments ort bdtalf d the t.essee. Section 3.Q~. Rertsal PavmeMs. Lessee shah pay Rental Paymers exausnrely b Lessor a its assignees In lavvltd, IegaNy availabe money d the Urttted Stiles d Amertw. The Rertsal Paymens shall be sent b the brafion specified by the Lessor a ifS assignees. The Rertsal Payments stall rx>rd+tute a nrrrerts expense d the Lessee and shah rtat oortsliwte an indebtedrtass d the Lessee. f..es®or stmN trove Ole artsion b d>arge ittserest at Ole highest fatwftts rate on any Rental Payments received labr hart tits due data for Ore number d days that Ole Rental Payments) were late, t.easor shah also trove the opficn, on mortshy payments ordy, b charge a Fate fee d up b 10% d ills morttitly Rental Payment that is peat due. The Rental Payrrrertss wtil be payable wlOtoul nttce or demand. ~ri 3.03. Rertsal Pavrrardt Urtg Except as provided under u^cufon 4.01, THE OBLIGATIONS OF LESSEE TO MAlO: RENTAL PAYMENTS AND TO PERFORM AND OBSERVE Tt£ OTIiER OONENANTS OONTAIt~D Of THIS 1T SHALL BE ABSOLlf1E AND tJlb~ 1N ALL EVENTS WITHOUT ABATEMENT, DIMINUTION, DEDUCTION, SET-OFF OF2 DEFENSE. Sedbn 3.~4. Purchase Ootbn Price. Upon thirty (~) days wtNlen notice. Lessee sheN bare the option b pay, in addition b the Rertsal Payrrtertt, the oonesportdirtg Purchase Optiat Price vdtidt is listed on the same Nne on Exhibit B. This option is oNy available b Ole Lessee on the Rental Payment dale and rto partial prepaymeNs are Mowed. N Lessee ctrooses tttss option and pays the Purchtase Qption Prioa b Lessor Oren Lessor vtsN transfer any and ant d ts's rf~tfs, ilia and atse-est in the EgrripmerN b Lessee. section 3.05. Lease Term. The Lease term d tt-e Agreerrrerts shah be the tJftglnal Tenn and aN Renewal Terms urtsN aN the Rertsal Payments are paid as sd for0- on ExHbr< 8 etrr>ept as provided urda SeG'wrt 4.01 and Section 9.01 below. If, aRer the end d the budgeting process wtstN:h Dears at ttte end d the Original Term or any Rertawat Tenn, Lerraee has not rror--appropriated as provided br in tiffs Apreernent titan the Lrase Temt shah be extended irrto the nexh Renewal Term and the Lessee shall be obrrgetad to make eA tits RertNi PayrrretMs Oat Dame due during such RerFawat Term. Section 3.00 Dbrfhii~x d tlr LESSOR MAKES ND WAWiANTY OR REPRESENTATION, EIThER EXPRESS OR IMPUE.D, AS TO THE VALUE. DESIGN, CONDITION, MERCt•IANTABILffY, FITNESS FOR PARTICULAR PINiPOSE OR ANY OTHER WARRANTY WITH RESPECT TO THE El]INPAEHIT. LESSOR SHALL NOT BE UABtE FOR ANY NiCN]!]~ITAL,1lfDlRECT, SPECIAL OR CX>N3EQUHfTULL. DAMAGE ARISNG OUT OF THE fliSTAt.LATION, OPERATION, POSSESSION. STORAGE OR USE OF THE EQUIPMENT BY LF_SSEE. Sedort 4.01.. Non~Aootrzoda~' r. ff irrsuRidenl ttrlds tare available b t.essee's budget for Ate netts Budget Yea b make Ole Rental PaymerNS for Ore netd Rensvvd Term and the fords b make such RerMel Payrnerks are ottlervtsse ratavaNabte, then Lessee shell Fave ire option b ~ the fords b pay the Rentsal Paymertss for the next Renewal Term. IPL'essee ctxroses this option, then all oblig of the Lessee under this Agreement regarding Rental Paynti r all remaining Renewal Terns shall be tennirrated et the erd of the then current Origirml Term or Reny _. Tenn vdOwcl penalty or liability to the Lessee of any kind pr.. _ed that 'd (.eases has not delivered possession of the Equipment b Lessor as provided herein and conveyed b Lessor ar released ifs interest in the Equipment by the end d the last Budget Year for which Rental PaymerNs were paid, the temtinatbn shall nevertheless be effective till Lessee shalt be responsible br an arracrtt equal to Ole amount of the Rental Payments thereafter tooting due under ExntbU B' whkit are amibufable b the number d days after such Budget Year rkrirg which Lessee fails b take such actions. Lessee shell immediably notify the Lessor as soon as the decision b clan-appropriab is made. ff such ranapproprbtan caeca, then Lessee shah deliver the Equipment b Lessor ~ provided bekxu in Section 9.04. Lessee shall be Rabic for aN damage b Ore Equiprttent oO~er than nomrar wear and tear. M Lessee faAs to deNver the Egtlprrrent b Lessor. then Lessor may er8er the premises where the Equipment is bested acct fake possession of the Equipment and change Lessee for costs incurred. V. Insurance, Dsmege, ktsufflclettcy of Proceeds 5.01. Irk. Lessee shell maintain both casually insrrance and liability insurance at its awn expense with reaped to the Equipment. Lessee shah be soibly responsible for selecitrrg the inserer{s) and for rraldrg aft premium payments and ensurtrg drat ar pdides are odwincrarsly kept in effect drying Ole period caller Lessee is regained to make itental Pmts. Lessee shag provide Lessor witit a Certifi~e of trrscrranoe which lists the Lessor and/or assicprs as a ties payee and an ad6tionai insured on the poNdes wiMr respect b fie Equipment. (a) Lessee shall krscre the EgclprrrerM against any bas or damage by fire and aft other risks covered by the standard extended coverage endorsement then in use in the Stale and any antler r~ r~sonably required by Lesser in an anaunt at least equal b Ore Oren appRCable Purd~se Opton Price of the Equipment. Attematively, Lessee may iriscr~e Ore Equipment under a blanket k-scrance policy or policies. (b) The NabliMy irtstrarw:e shall Insure Lessor from UabNity and properly damage in any form and amocrrt satls(edory to Lessor. (c) lessee may set ktsure against the cescralty risks and ItabiiNy risks described above. K Lessee drooses ttrs option, Lessee must fumrsh Lessor with a certificnte and/or other doarnents which evidertoes such coverage. (d) AN ir-scrrtoe poNcies issared or affected by this Section sfxtil be so written or endorsed such ttlat the Lessor and ifs assignees are rtarrred additiartai instreds and loss payees and Oral all k>sses are payable b Lasses end Lessor or its assignees as ti~elr interests may appear. Eadt pdfcy issued or alfeded by this Sedbn shall cxxMain a provision Oiat the k-scaance company std not carroei or materially modify the poky wiMacA first giving Thirty (30) days advance notice to Lessor or its assigrees. LessES shell icrrrsh b Lessor o*_rlKcates eMdenchrg such coverage OtrorrgtarA the lease Tenn. Sagior- 5.02. Darrtaae m a D~siruction of Enukxrrerlt. Levee asstrrnes Mrs risk of loss or damage b Ole Equipment. H Ore Equipment or arty portion thereof is bat, stolen, damaged, or destroyed by fire or other casually, Lessee will ktrr-edtately report aN such losses to ap possible insurers and take the Proper Procedures b attntn aN inscearrce proceeds. At the option of Lessor, Lessee shall elOxar (1) apply fire Net Proceeds b replace, repak a restore the Equipment or (2) apply the Net Proceeds to the applicable Purchase Option Price. Fa purposes d this Sedbn acct Sectlw- 5.03, the term Net Proceeds stroll mean the arracrl of insurance proceeds cdlacted from all aipplicable Insurance paRcies after dedudkg ail experaaes irrarrred in Ole aoNedior- thereof. SecUOn 5.03. I~OfiCiertcv of Net Proceeds. If there are na Net Proceeds for wAiatexsr reason or ff the Net Proceeds one insutfxient b pay in fidl the oust of arty replacement, repair, restoration, mod'draAiart or improverrrent d Ma EgcrprnerN, Oren Lessee shall, at the option d Lessor, eiMrer (1) complete such replaoerneni, repair, restoration, noon or 6rgxovarrrertt acrd pay arty carets ftvared in excess of Mte scratch of Pte Net Proceeds or (2) apply Ore Net Proceeds to the PcrnGrase Option Price and pay the defldency, ft any. b the lessor. Sedbn 5.04. Lessee NagNstence. Lessee assumes a!I risks and Nobilities, wt-ether or nd covered by insurance. for loss or damage b the Equipment and for injury b or deaMr of ant person or dartrage b any property whether such ir>;ury or death be with rasped b agents or employees of Lessee or of ihkd parties, and whether such property damage F>e b Lessee's properly or the properly of oOters {k-dud>rtg, without Rrnitation. GabRities for loss or dentage related b the release ar tlxeatened release of trazatdous substances order the Carrprehensae Ernrironmental Response, Camper>sation and Liaix'Ny Ad, Ore Resocroe Qor~rvafion and RAY Act or similar or successor Taw or arty state or kxal egtrivalerd now exislktg or hereirtaAer erteded wtrch b any matrrer arise out of or ae incident b any possession. use. operation. corKtitbn or storage of arty Egclprt~ by Lessee) which is gmdnrately caused by the ragligerrt candxx of Lessee, its officers, errrpioyees and agarrts. Lessee hereby assumes responsibiNty far and agrees to reimburse Lessor for aft ~bi6es. obRgattorrs, losses. damages, penaMies, dairrts, adiars, costs and expertges (irricrd'ag neasonabie alMmeys" tees) d wha$oever kind and nature, krrposed on, kxarrred by or asserted agakrst Lessor that in ary way refab b or arse out of a deim, suit or proceedrg, based In while or in Part upon fire negligent oordcrd of Lessee, its ot(kxrs, employees aril agents, b the ma~dnwm extent pemtiMed bylaw. Vi. Tkts and 8eturky Yrlarest Section 6.01. Tifle. Tie b the Ecµlpment shah vest b Lessee when Lessee acgtlres and aax=pis the Equipment. TMe fo the Equt wUl aubnaaBc~Ny transfer b Ore Lessor b Ore event Lessee ron-appropriates uder Sedbn 4.01 or in the everts Lessee defaults uder Beeper 9.01. In either of sudt events, Lessee shall execute and delver to lessor such doarmaris as Lessor may regcrest io evidence the passage of iegnt title b the Egripmen! b LBSSOr. Section 8.02. Searih To scare the payment of aN Lessee's obNgations order tt~ Agreerrrerl, L,assee hereby gram b Lessor a security interest arctic the Unifortn Conrrrerc~l Code ewrsOkling a fist Nan on Ore E¢ipmerrt desaibetf more tulgr on F '/1 . The seargy interest established by ittis section frxiudes cwt only all additions, attacivrrents, repairs and replacerrrents to the Equiprrrent tart also aN proceeds therefrom. ViI. Aastgrlatirnt Section 7.01. Assbmrerrt,¢y Lessex. AR of is rights, title arrcVa' krbrest b and b Mtis Agreement may be assigned and reassigned in whole or in pert b one or more assignees or sub-assignees (inducting a Registered owner for Lease Partlcipation C,ertiflcales) by Lessor ai arty time wlOaul the consent of Lessee. No such assignment shall ba etfecYve as ag~t Lessee until Mrs assigrar shah have tiled with Lessee wri0en ratice of assignment iderRifying the agree. Lessee shah pay aN RtxNai Payments due fterarrder rreiaOrg b such F_grr~rtrerR b or at the daedion d lessor ar the assignee r-arred h the raOce of assigrrr>ent. lessee streR keep a complete and acre record of all such assigrrrrerls. Section 7.02. Assktrrrrent by lam. None of Lessee's right, title and interest under this Agreement acct b the Equlpnant may be assigned by Lessee urtiess Lessor approves of such assignmer in writlrtg bebre such a~rrt>ent ocars and only after Lessee fret abbins an opirtien from nationally reoogn¢ed causal stating that such assigrurtent win not jeopardize the tic-exempt sous of the obNgation. VIN. iRsYrYerrsrrea of F_qulpment j.l 8.01. Lessee strait keep the Egripnant in good repair and working order. Lessor sf~l have ro obligation b irrsped, test, service, maintain, repair or make improvements or additions b Ore Egtiprnetl order ary ~. Lessee vv~ be petite for aft damage b the Equipment, oOrer then rtarrrari wear and tear. caused by Lessee, its erttpbyees or ib agerMS. Lessee st-aw pay for acct obtain all perrtrts, Ncertses and taxes necessary for Oa klrAalFaflor>, operatkxr, possessoor-, sbrage or cse of the Equipment. If the Equipment includes arty titled vefrcle(s), then Lessee is responsNre for ot>bskrng such title(s) from the State and also for sneering Orel Lessor is fisted as First Lienhdder on aN of the tNie(s). Lessee stroll not use tiie Equipment to haul, conveyor transport hazardous waste ~ defined in the Resource Conservation and Recovvery Ad, 42 U.S.C. 6901 r:t. seq. Lessee shah tat durkg ttte term of ttrs Agreement create, roar' or assume arty Ie+Aes, Hens or enambranoes d ary kind vNth rESpaQ b Ore Equipnent except those try this Agreerttent. Lessee agrees that Lessor or ~ Assignee may exearfe any addNiortal docunrerls kkicdhrg tirencing sfatenterrts, affidavits, notices, and strrllar lrrstrcarrerls, far and on beheM of Lessee which Lessor deems near or appropriate b protect t.essor's trgerest In Ore Equipment and in this Agreement. The Equipment is and shah at alt Panes be and remak- Pa~-nt Party- Is$aee strap aNow Lessor b exarrrne and irispecx the Equipment at all reasonable ikrres. IX. Dafattit Sedbn 9.01. Events d Dg~,yj(_. The bNowing events shah axlsdtute an'Event of Defatdt' under tttis Agreement: (a) Failure by Lessee b pay any Rental Paymerrt Meted on Exhibit B' for fifteen (15) days after such payment is due aooordrg b Ore Payrnertt Date on Extdbit'B'. (b} FaRure b Pay any oltrer payrrent required b tx3 poW order this Agreerrtant at the Wrre sped8ed herein and a oorpka>ation of saki fa~rre for a period d M(teen (15) days after wrWen mOoe by Lessor that such payment moat lie made. M Lessee oatlk-ues b fail b Pat aN Pint Such Pte, Oren t.,eaeor may, but wiN rrnt be obRgalad b, make such payments and dtrrge lessee for ati casts krarrred Pkrs krtarest al Mrs trgtrest larvhl rate. (c) Faihre by Lessee b observe artd perform any wananiy, oovenent, cordiMon, prances or duly order Ors Agreement for a period of tirAy (30) days attic written ratios speCifyig staff faRtre is given b Lessee by lessor, urdess Lessor agrees b wdMng b an exlermiart of Mme. Lear wflI not trtreasorrebly wittraid its axtsmtt b an efdrt of tlrrte d ebrrecifve action Is ittstGtrted by lessee. SubsecMort (c) does rat apply b Rerrtai Payments and other payrrrenffi disarssed above. (d) Any statement, material omission, repreaerrbtiort or werrarrty made by lessee b or pursuant b tltis Agreement which proves b be false. ir>cared of rrrsleadkg on the date when made regareRess d Lessee's irtlent and which rrtateriaNy adversely affecffi fie rigiVS or security of Lessor carder this Agreement. (e) Ary Provision d this Apreerrterl rlrcft ceases b be trail liar wtratever reason and the bas of such provision world rrtaterialy adversely alfed Mrs rights ar scarify d Lessor. (~ Lessee adrrib b vvdiktg ifs ktabNity b pay fLs obRgaMorts. Lessee dafatris an one or more d ib oOter obNgaOons. Lessee appNes or aortsenffi b the appointment of a tecerver or a ar$fodian b manage Ns afbis. Lessee makes a general assignment fa' Ole benefit of aedUors. Sa~orr 9.01. ~rre g~ on Debug. YYhenavar ary Event of DafsiuK esasts, Lessor sftaA have Mte right to take one a any cortlrnadion d Mte faNowkig remedial abps: (a) W)Ml a wlMatR terrntrteMng this Agreenlerl, lessor may defiers aN Rental Payments and oOter amotrls payable by Lessee hereunder b Oa end of the titers ctrr'ent Budget Year b be krrradfately due acct payable. (b) With or wNtaut t8rtrtWtadrg this Agreamertt, Lessor may reptlre t al Lessee's e1~d18e i6 redeliver any or ant Of OIe Equipment b Lessor a3 provided below in Sedlon 9.04. Suit delivery rtrdM take place YYMtlkt iMteert (15) days abler Mte event d de(atri cosecs. M lasses fats b deMrer Mrs Equipment, Lessor may P.rrter Ole premises where the Equipment is loc ind take possession d the Equipment aril charge Lessee st incurted. Notwithstardirg ffiat Lessor hoe taken possession of the Equipment, Lessee s._., still be oblignted to pay the rerrrntning Rental Payments due up -.~i the end of the then curn+nt Original Term «Renevvnt Tenn. Lessee will be liable f« any damage to the Equipment caused ~Le « deb ~ ~ ~ rigF>ts. ~ shall be responsible to Leser« f« all coats (c) Lessor may take whatever adios al law « in equity ttrnt may appea incurred by Lessor in the entorcement d its rights urxld'this Agreement irrcludirrg, but not tirNied to, reasonable atfomey fees. Sectior- 903 No Rernedv t~• ~ remedy t~refn ~ upon «reserved to Lessor is irderderi to be exdusive and every such remedy steal! be cumulative and shall be in addRion 1o every o>firer remedy given order this Agreerrrent now «trarealler existing at law «in egtaty. No delay «omission to exerrtse arty right «power aocXUirg upon arty default shah impale any such right «sheq lxi construed to be a waiver thered. S~ectlon 904 Return d Erwlomertt and 3t~f~ (a) Surrender: The Lessee shalt. at Rs own expense, surrender the Equipment to the Lessor in lire event of a DetauR «a Pbrrapproprialton by delivering the Equipment to the Lessor to a Iocatlon aooessible by rxxrwnon carrier ant designated by Lessor. kr the case first art' d the Equipment oonsi~s d software, Lessee shell destroy ail Intangible items constituting suds solMrare and st~l delver to lees« alt tangible Rears constituting such software. A< lessors request' Lessee shah also eertUY in Pem~ale~or ~« the enldorof thethe > irrsped Levee's locatpns 1o verify conpliance with tt ewili imrrredetefy case using the software and chat they (b) peAvery: The Equipment shad be dedvered to the bor~tior- desig-a~d by the Less« by a oomrgn cerrirx unless the Lessor agrees in wrRirrg that a corrarron carrier is not needed. When the Egrripmenf fs dedvered into tt-e cxrstody d a common carrier, the Lessee shall arrange f« the shipping d the item and ifs Insurance in transit in acc«dance with the Lessor's ins6'udl«ts and at the Lessee's sole expense. Lessee at its expense shall completely sever and discArx-ed the Equiprrrent « iL4 component parts from the Lessee's property aN wttlwtII liability to the Lessor. Lessee shah peck « crate the Equipment and ad d the cxxnponerrt Parts d the and ~ aocor~rr:e utUr ~ ~ d the manrrfadrver- The Lessee sited deliver to the Lessor tite plans, spe~tior~ operation trrerurais «other warranties and doaxnents famished by the manufacturer or vendor on the equipmerM end such other docurtrents in the is possessoor- relating to the maintenance and rrtetttods d operatfat d such Egrapment (c) Candti«t: When the Equtpntertt is srrrertdered to the lessor R shelf be in fife oort3lion and repair required to be nrairpained order this Agreement- R will also meet all ~ regulatory eortcfitiorts rteoessary for the less« to s~ or lease R to a thed party and tie frt~ d aR Herts. K Lessor reasorratAy detemrrttes bunt the Equipment «an ~~nt «E ~ ge t~tre~EquipmenachieNe such condGbn and upon derrrend. Lessee shag ixemptlY reimburse l_ess« i~or aH amounreasonablynded in comedan witlt the toregoirg. (d) Sbrage: L1pon written regr>est Ely the Less, the lessee strati provide free storage for the Equipment «any Rem d •te Equipment for a period not to etooeed RO days after the expiration d Rs lease term before r~trirr~g Rlr.~~sso~r siu reirrreu~rse lasse~on for ~e it um ~ P~~ ^s'"'an~ ~ rasped to such Rem during its storage period X ~ and she! be deemed given wtrur dedvr3red «meited try registered rrrail, postage prepaid, to the parties at their Section 1001 hlatic~. Ad ndioes shah ~ sutikientty given respecthae places d business as first set forth herein «as the parties shad designate hereafter in vKidrrg. ~g tr~i'on 7002 Birrdrlo Effect. Ttws Agreement shall forte to the benefR d and shag be bir~ng upon t asses and t~ess« and their respective ~oessors ~ shad riot SPaion t0 03 Severatri~r- m the event any t d this Agreement shad be held irrvaNd «uraerrforoeaeie by any pout d competent juis~l'ion. irtvatidate «render urtdtforoeabie any other proNlsfort hereof. This agreertrent ~y ~ ~~ added b dtartged « modified by written agreerrrertt fiat' executed by Lessor and t.essee. Sedron 10 ~ Etaeafi«t to C.otrtier~- This Agreement may tie sirrwftarteousty exeaAed in several c«nferparts, eacfi d wtadt shad be an original and ad d which constitute but one and life same iretnment. ~gtgn 10.06. Caotbns. Toe captions «headirgs in this Agreement do not define, drNt «desdibe the scope «intent d any provisions «sedions d this agreement. Sgdron t 007 Master tease. Tiffs agreerrrent can be utilized as a Master !rase Agreement. This means that the Lessor and the t asses rosy agree to the lease d adddionai Egnt~nt rxtder tltis Agreement at some point in Rte fiture by exearlirtg one « more Additional Sdtedrrles to ExtribR A, ExHbR 8, Extrbtt C and ExhibR E as wed as otlter exNdts « doarmertts the may be required by tess«. Additional 5dtediAes wld be oorrsecudven+ numbered on each d the exhibRs Mrtiidt make up the Additional Schedule and eN the teri»,s and c~orrditiorrs d the Agreement shall govern each Adddional Schedule. tiectlrxt 10 Ott EnEre WrRina. This agreement mutes ~ entire writing bettveert Lessor and lessee. No vrntver, cortserrt' modification «drenge d terms d ttris agreenrerrt shell kiirt4 either party rxdess in writing and signed by txtdt p• and ttert such waiver, , modification «drertge siren be etferdiae onty in the specific irts~rtoe and f« TFtue are rw uders~ndrtgs, agteerrrerrts, represeritatiorts, cortdidorrs, «wrxrar~es, express «irrrpded. viArldr are riot speeded herein regarcfirg this ttte specaRe pupose 9~• order « other docrarrerOS submiged by lessee in oortnedfon vrRtt this Agreentertt Agreement «1#te Equipment leased hereunder. any terms and wrditions of any Wti'~ vatricit are in add~on to «irtconsistent with the terms and conditions d tttis Agreement wtil not be binding on Less and wdi riot appy to this Agreerrrent. Less« and lessee have caused this Agreerrient to be exerxrted in their names by tlteir duty authorized representatives listed below. KERR COUNTY Sig tore SECURITY STATE BANK 8 TRUST .. are David W. Derry, T,oan Officer Typed Name and Title Typed NatTle atxi Title Schedule X01) EXHIBIT A DESCRIPTION OF EQUIPMENT RE: Lease With Option to Purchase Agreement dated as of December 1, 2005, between Security State Bank 8 Trust (Lessor) and Kerr County (Lessee) Below is a detaiised description of all the items of Equipment induding quantity, model number and serial number where applicable: One (1) Asphalt Zipper Milling Machine Location of Equipment: Road & Bridge yard - 4010 San Antonio Hwy. - Kerrvi]_le, `l~{ Schedule (01) EXHIBIT B PAYMENT SCHEDULE RE: Lease With Option to Purchase Agreement dated as of December 1, 2005, between Security State Bank 8~ Trust (Lessor) and Kerr County (Lessee) ~.~~,..~ Date of First Payment: October 1, 2006 Original Balance: $79,119.25 Total Number of Payments: Three (3) Number of Payments Per Year: One (1) Pmt Du® R®ntal Applied to Applied to *Purchase No Date _ Payment Interest Principal option Price 1 1-Oct-06 $28,987.98 $3,541.03 $25,446.95 $53,672.30 2 1-Oct-07 $28,987.98 $2,844.63 $26,143.35 $27,528.95 3 1-Oct-08 $28,987.98 $1,459.03 $27,528.95 $0.00 Kerr County Pat Tinley, Kerr County Judqe Typed Name and Title *Assumes all Rental Payments due to date are paid -~ ~~~~~ ~_ s ~y`C ~0 ~~ ~~~~ UCC FINANCING STATEMENT AMENDMENT FOLLOW INSTRUCTIONS front and back CAREFULLY A_ NAME & PHONE OF CONTACT AT FILER )optional] TO: (Name and ' Kerr County 700 Main St. Kerrville, TX 78028 ta. INITIAL FINANCING STATEMENT FILE OS-0038429859 THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1 b. This FINANCING STATEMENT AMENDM r--I to be filed [for record] (or recorded) in the 2. TERMINATION: Effectiveness of the Financing Statement ident'died above is terminated with respect to security interest(s) of the Secured Party authorizing this Termination Statement 3. CONTINUATION: Effectiveness of the Financing Statement identified above with respect to security interest(s) of the Secured Party authorizing this Continuation statement is continued for the additional period provided by applicable law. 4. ASSIGNMENT (full or partial): Give name of assignee in item 7a or 7b and address of assignee in item 7c; and also give name of assignor in item a. 5. AMENDMENT (PARTY INFORMATION): This Amendment affects Debtor oL ^ Secured Party of record. Check only one of these two boxes. Also check qpg of the following three boxes ar provide appropriate information in items 6 and/or 7. CHANGE name and/oraddress: Please refertothedetailedinstructions DELETE name: Give record name ADD name: Complete item 7aor7b,andalsodem7c; in recardsto chanainathe name/address ofaparty ^to be deleted in Rem 6a or 6b ^ also complete items7e-7c (if applicable). c (-i ioo~r,iT or=anon n.ir=nonnennr.r 7a. OR 76. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX CITY STATE POSTAL CODE COUNTRY 7c. MAILING ADDRESS 7d. SEE INSTRUCTIONS ADD'L INFO RE 7e. TYPE OF ORGANIZATION 7f. JURISDICTION OF ORGANIZATION 7g. ORGANIZATIONAL ID #, if any ORGANIZATION DEBTOR NONE 8. AMENDMENT (COLLATERAL CHANGE): check onlygpg box. Describe collateral ^deleted or ^ added, or give entire restated collateral description, or describe collateral assigned. 9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT (name of assignor, R this is an Assignment). M this is an Amendment authorized by a Debtor which adds collateral or adds the authorizing Debtor, or if this is a Termination authorized by a Debtor, check here n and enter name of DEBTOR authorizing this Amendment. 9a. ORGANIZATION'S NAME ~r OR Security State Bank & Trust, Fredericksburg, TX MIDDLE NAME SUFFIX ~9b. INDIVIDUAL'S LAST NAME FIRST NAME Ln# 40085 International Association of Commercial Administrators (IACA) FILING OFFICE COPY -UCC FINANCING STATEMENT AMENDMENT (FORM UCC3) (REV. 05/22102) 7. CHANGED (NEW) OR ADDED INFORMATION: