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Please do NOT send CORRESPONDENCE here.
Caterpillar Financial Services Corporation
P.O. Box 100647
Pasadena, CA 91189-0647
Please do NOT send PAYMENTS here.
Caterpillar Financial Services - Customer Relations
P.O. Box 340001
Nashville, TN 37203
Overnight Mail (Payments Only)
Bank One
2710 Media Center Drive Attn: Caterpillar Financial
Building #6, Suite #120 LockBox #100474
Los Angeles, CA 90065
Wire Transfers
JP. Morgan/Chase Manhattan Bank
ABA Routing # 021-000021
Account # 910-2-469872
cG$I!.'er'lsl'll1ice~lm::HOn)e!f'R'mHe'i.,.s.......................
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CUSTOMER SERVICE INSURANCE Only
1-800-651-0567 1-800-248-4228
Monday - Friday Monday - Friday
8 am. - 6 p.m. CST 8 a.m. - 6 p.m. CST
~~~'IL'.II~
· Check or money orders via U.S. mail
· Check or money orders via Overnight mail
· Direct Pay Automated Payment System
· Fax payment on www.CatFinancial.com
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Payments are not considered paid until received All payments received after the due date must include the Late Charge.
Postal delays do not result in a waiver of the late charges. Therefore, please allow adequate time for mail service.
PLEASE RETAIN FOR YOUR RECORDS
Fr,r",i':<l L'd''I'''''LT.21i))
~5::::441111]/I(}'~()!I]]: l(d~ Pl--K'T
CUSTOMER INFORMATION VERIFICATION
In our efforts to continue providing timely cllstomer service, we nced your assistance confmning the following information. If any information is
incorrect or missing, please note the necessary changcs below and return this form with your signed documents. Thank you in advance for your
cooperation.
Current Information on tile
Please make corrections here
Customer Name:
CITY OF BOZEMAN, MONTANA
411 EAST MAIN STREET
Physical Address:
Mailing Address:
BOZEMAN, MT 59771-1230
P.O. BOX 1230
Equipmcnt Location:
BOZEMAN, MT 59771-1230
PO Box 1230
Business Phone:
BOZEMAN, MT 59771, GALLATIN
(406)582-3200
81-6001238
Fed. In I/- or SS #:
E-mail Address:
Accounts Payable Contact
Name and Phone:
Tax Information
Sales Tax Rate:
o
(Please note: Sales Tax
Rate, includes all
applicable State, County,
and City sales tax)
City Limits
Asset outside the City Limits'? Yes~ No~
Tax Exemption Status
Please indica te if you are tax exempt.
If you are tax exempt - please enclose a current
tax exemption certificate to be returned with
your documents - Not needed by CFSC if dealer
ISC
Other Information:
I"orm:-;Q, n.V[~C')Il!' m
4~:44(1I):l"I()::w()13:1{,:H ~MC.T
Caterpillar Financial Services Corporation
INVOICE
CITY OF BOZEMAN, MONT ANA
411 EAST MAIN STREET
BOZEMAN, MT 59771-1230
I Description
ScHill
I) 120II
CatellJillar Motor Gradcr
6YN00337
Sales and Use Tax
Document Fee
Filing Fee
Stamp Fee
Othcr Fccs
pltge Date~~yqi~el'lll1'
1 03/10/2003 LSAP-50452440-1
I Due bite
Upon Receipt.
RETURN PAYMENT COPY AND CHECK FOR SPECIFIED PAYMENT(S) WITH SIGNED LEASE
DOCUMENTS
Your check will be cashcd by Lessor upon receipt, but that act will not constitute acccptance by Lessor or the
Lcase or Schedule. If Lcssor accepts and executes the Lcase and/or Schedule, the proceeds or this check will he
applied to the specified rcntal payments. If Lessor does not accept the Leasc or Schedule, I,essor will return an
amount equal to this chcck.
WITI lOUT TAX EXEMPTION CERTlFICA TE, APPROPRlA TE SALES/USE TAX WILL BE CHARGED.
CITY OF BOZEMAN, MONT ANA
411 EAST MAIN STREET
BOZEMAN, MT 59771-1230
Remit To:
Fi ncial Services Corporation
'nd ^ venue
37203
l'orml'lo.I:-;Vsr.r-2/911
PLEASEP A Y THIS AMOUNT
IllvolccN6.
LSAP- 50452440-1
1.:(lnjt,N()lil
$
.'Arno IiJlt
$18,193.49
$000
$0.00
$0.00
$0.00
$(l.OO
$18,193.49
$
Total Enclosed
4~i!44() nVW;2l1011' l{,,~:lI'MC.1
DELIVERY SUPPLEMENT
This pCliains to the Lease, dated as of .__________.______, between Caterpillar Financial Services
Corporation as Lessor and CITY OF BOZEMAN, MONTANA as Lessee.
This confinns that the Lessee physically received the following Unit on the possession date below. As of the date of
sign..'ure of this form, (i) the Unit is in all respects satisfactory to Lessee for leasing under the Lease, and (ii) Lessor has
performed all of its obligations under the Lease.
Q~~cription of Unit:
(I) lZ0H
6YN00337
New
Caterpillar Motor Grader
Location:
BOZEMAN, MT
County:
GALLATIN
EquipIl1ent~ocated:
Inside X or Outside _ City Limits
Possession Date:
CITY OF BOZEMAN, MONTANA
\ \
<:.....~\ ."
Signature
Name (PRINT) Clark V. Johnson
C ;~LMan_~~!:'.m
Title
Date
March 28. 2003.
F':'i"II\Nu,1)S()f)1l2_("<}4
452441)I)JiJ()!2()())):16:55 r:.tCT
EQUIPMENT:
(I) 120H
New
Caterpillar Motor Grader
6YN00337
RE: INSURANCE COVERAGE FOR LEASED EQUIPMENT
Pcr the Lease agreement between CITY OF BOZEMAN, MONTANA 411 EAST MAIN STREET BOZI<:MAN, MT 59771-1230 and
Caterpillar Financial Services COl}Joration ("Caterpillar Financial"), it is required that we be provided with insurance coverage in accordance with
that agreement as indicated below_
Physical Damage Coverage must show that Caterpillar Financial has been named loss payee for the equipment's replaccmcnt value. The deductible
must be shown.
Liability Coverage of a minimum of $1 ,000,000 or combined coverage for bodily injury and property damage per occurrence. Caterpillar Financial
must be named as additional insured.
Please notify your agcnt for the proper coverage, and list his name and location below. Our representative will follow up for confirmation of this
coverage.
INSURANCE AGENT; Montana Municipal Insurance
ALithori ty
ADDRESS; .__p_.O. Box 6669
~Jen(l,.Montana 59604
CONTACT PERSON: John C~a i9
PHONENUMBE~ 800-635-3089
IF EQUIPMENT HAS BEEN DELlVEllliD, WilEN WAS IT DELIVERED': ...119 rcR_kJ~ ,_2_00~,-____"____
PROCESSfNG OF THIS TRANSACTION WILL BE HELD PENDING RECEIPT OF THIS INFORMATION.
PLEASE FOR W ARD CERTIFICATE TO: Caterpillar Financial Scrvices Corporation, 2120 West End A venue, Nashvillc, TN 37203
["orm ;-"0. ]lIi))J.9'95
45244()OJ/11)12()()33:16:55r~CT
Option B
I elect to obtain my own insurance on the equipment shown on the reverse side from the
following agent and insurance company. I understand that the processing of this
transaction will be held pending receipt and verification of this information.
Customer Name CITY OF BOZEMAN, MONTANA
Dealer Name
TRACTOR & EQUIPMENT CO
Insurance Agent
Agent Address
Agent Phone # (
)
Contact Person
Insurance PoJicy#
Signed By ..._____.~~~_..__ .
Fonn No. CISCINSF-4/02 Deal~r Code E400
45244003/1 0/2003 3.1655 l'MCl
Physical Damage Insurance Selection
Before financing your equipment, you must an-ange physical damage insurance on the equipment identified below.
TIle insurance may be provided through an insurance agent or insurance company of your choice, provided the
insurance company satisfies minimum financial requirements.
As an alternative to obtaining your own insurance, you may elect to have your equipment insured under a master policy
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
American Zurich Insurance Company.
Model #
Scrial#
A. 12011
6YN00337
B.
Equipment Descliption
Value
Including Tax
$154,742.00
Pymt Method-I
Total Premium
$9,28452
Pymt Method-2
Finance Pymt
$2,005.34
Caterpillar Motor Grader
c.
D.
Option A Arranged by Caterpillar Insurance Services Corporation
I elect to insure my equipment under the Caterpillar master policy. I understand that the total insurance premium for 60
months will be $9,284.52, which is $1,856.90 per year based upon the total equipment value 01'$154,742.00.
Method 1 D
I will pay the total premium and retum it with the signed equipment documents. Please make check
payable to Caterpillar Insurance Services Corporation, Attn: Insurance Billing, 2120 West End
Avenue, Nashville, TN 37203.
Method 2 D
I will pay the insurance prem.ium, including finance charges, of $2,005.34 per scheduled equipment
payment. The finance charge is calculated at 4,(>0% per annum on the total insurance premium
covering the full term of the finance agreement.
Method 3 D
I desire coverage for an initial 12 - month term. I will pay the $1,856.90 premium and retum it with
the signed equipment documents. Please make check payable to Caterpillar Insurance Services
Corporation, Attn: Insurance Billing, 2120 West End A venue, Nashville, TN 37203.
I acknowledge that I 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.
You may tenninate this coverage with advance written notice at any time.
Company Name:
CITY OF BOZEMAN, MONTANA
Hy:
Print Name:
Title:
Please note:
Date:
___m...' ---.....--'.---....'.'. --...
If you have any questions or need additional details, please contact 1-800-248-4228.
Form No, CISCINSf-4/02 Dealer Code E400
45244003/10/20033. Hdj PMCT
POLICYHOLDER DISCLOSURE
NOTICE OF TERRORISM INSURANCE COVERAGE
Your policy provides or, if this notice is being provided in cOllilection with an offer of new or renewal coverage,
would provide coverage for acts of terrorism subject to all temls, 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(1) of the 'I'errorism Risk Insurance Act of 2002 (the Act), are partially reimbursed by the
United States of America. The tenn "act of tenorism" means any act that is certified by the Secretary of the
Treasury, in concurrence with the Secretary of State, and the Attorney General of the United States - to be an act of
terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastruchlre; 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 States 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
docs 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 tenorist 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.
FnlTTI No. C1SCINSF-4102 Dcaler Code E..1UO
45244003110/20033-16.55 PMCT
To: Caterpillar Financial Services Corporation
OPINION OF COUNSEL
Re: Govell1mental Lease-Purchase Agrcement
Dated as of ._.,_.____ (the "Lease")
Between Caterpillar Financial Services Corporation ("Lessor") and
CffV OF BOZEMAN, MONTANA ("Lessee").
Sir/Madam:
1 am an attoll1ey for Lessee, and in that capacity I am familiar with the above-referenced transaction, the Lease, and
all other documents pertaining to the I,ease.
Based on my examination of these and such other documents, records and papers and matters of fact and law as I
deemed to be relevant and necessary as the basis for my opinion set fmih below, upon which opinion Lessor and any
subsequent assignee of Lessor's interest may rely, it is my opinion that
1. Lessee is a fully constituted political subdivision or agency duly organized and existing under the Constitution and
laws of the State of Montana and is authorized by such Constitution and laws to enter into the transaction contemplated
by the Lease and to can)' out its obligations thereunder.
2. TIle Lease and all other documents contemplated by the Lease have been duly authorized, executed and delivered
by Lessee and constitute valid, legal and binding obligations and agreements of Lessee, enforceable against Lessee in
accordance with their tell1lS.
3. 'I11C person or persons who have executed and delivered the Lease, and all other documents contemplated by the
Lease were authorized to do so on behalf of Lessee.
4. No fmiher approval, license, consent, authorization or withholding of objections is required from any federal, state
or local governmental authority with respect to the entering into or performance by Lessee of the Lease or the
Schedules(s) and the transactions contemplated thereby, and Lessee has sufficient appropriations or other funds
available to pay all amounts due under the Lease for the current fiscal year.
5. The interest payable to Lessor by Lessee under the Lease is exempt from federal income taxation pursuant to
Section 103 of the Internal Revenue Code of 1986, as amended.
6. The entering into and perfoll1lance of the Lease and all other documents contemplated by the Lease will not
conflict with or constihlte a breach or violation of any judgment, consent decree, order, law, regulation, bond, indenture
or contract, applicable to Lessee or result in any breach of, or constitute a default under, or result in the creation of any
lien, charge, security interest or other encumbrance upon any assets of Lcssee or the units leased under the Lease
pursuant to, any indcnture, mortgage, deed oftmst, bank loan, credit agreemcnt or other instmment to which Lessee is a
party or by which it or its assets may be bound.
7. There is no litigation, action, suit or proceeding pending or, to the best of my knowledge, threatened against or
affecting Lesscc in any court or before any govell1mental conilllission, board, agency, arbitrator or authority which, if
adversely detennined, will have an adverse effect on the ability of Lessee to perform its obligations under the Lease. In
addition, 1 am not aware of any facts or circumstances which would give rise to any litigation, action, suit or proceeding
relating to or potentially adversely affecting the ability of the Lessee to perform its obligations under the Lease.
F()rn\No.OCi'I)lf~.51!))
452ulI~):\IjOmlj)3l H,'~~ I'Me'!
8. The units leased under the Lease arc personal property and, when subject to use by Lessee, will not be or become
fixtures under the laws of the State of Montana.
9. The authorization, approval and execution of the Lease, the Sehedule(s) and all other documents contemplated by
the Lease and all other proceedings of the Lessee related to the transactions therein and contemplated thereby have been
performed in accordance with all open meeting laws, public bidding laws, and all other applicable laws of the State of
Montana.
10. The Lessor will have a perfected security interest in the Units upon filing with the Secretary of State for the State
of Montana and/or the of.___.._____ at the time of acceptance of the
Units of an executed UCC- I or other financing statement.
Yours sincerely,
Signature:--'"
\---..L__.__
Name(PRINT):~1ark V. Johnson
Title:
Ci tv Ma.!!?Qer
Date: Ma rchZB. 2003
Address:
P.o. Bo~ 1230
_____ Bozem~WJ Mont~f!_a_~7J_
Telephone: ~L 582-~]QQ___
!'''l'fYlNQ,OCOOUII_3f'J:l
~ ~744n /I~I jM!O(1) J: 1 r>,.~~ l'M(:"!"
8. The units leased under the Lease are personal property and, when subject to use by Lessee, will not be or become
fixtures under the laws of the State of Montana.
9. The authorization, approval and execution of the Lease, the Schedule(s) and all other documents contemplated by
the Lease and all other proceedings of the Lessee related to the transactions therein and contemplated thereby have been
perfonned in accordance with all open meeting laws, public bidding laws, and all other applicable laws of the State of
Montana.
10. The Lessor will have a perfected security interest in the Units upon filing with the Secretary of State for the State
of Montana and/or the . _. of at the time of acceptance of the
Units of an executed UCC-I or other financing statement.
-~\
Yours sincerely,
" G'
Signature: I /
Name (PRINT. Susan-I::. Warda}
Title: Assistant City,Attorney-"---'-
Date: April 22, 2003__~//'
Address: PO Box 1230
Bozeman, MT 59771-1230
Telephone: (406) 582-2309
Form 8038-6
Information Return for Tax-Exempt Governmental Obligations
Ii'- Under Internal Revenue Code section 149(e)
Ii'- See separate Instructions.
Caution: If the issue price is under $100,000, use Form 8038-GC.
OM8 No. 1545-0720
(Rev. November 2000)
Dcp~nmcnt of the Treasury
Internal Revenue Service
If Amended Return, check here ~ D
2 Issuer's employer identification number
81 : 6001238
_ Reporting Authority _
Issuer's name
City of Bozeman
--,.,..~~,-,~-~
3 Number and street (or P.O. box if mail is not delivered to street address)
411 east Main Street
5 City, town, or post office, state, and ZIP code
Bozeman, MT 59771
11
12
13
14
15
16
17
18
19
20
7 Name of issue
Caterpillar Financial
9 Name amJ title of officer or legal representative whom the IRS may call for more information 10 Telephone number of officer or legal representative
( )
e of Issue (check applicable box(es) and enter the issue price) See instructions and attal::.h schedule
D Education 11
D Health and hospital 12
o Transportation . . 13
D Public safety. 14
D Environment (including sewage bonds) 15
D Housing 16
o Utilities .... 17
~ Other. Describe ~ A TF .___ 18
If obligations are TANs or RANs, check box ~ D If obligations are BANs. check box ~ D
If obli ations are in the form of a lease or installment sale, check box ~ 0
Qescri tion oC9"~.I~gations. Complete for the entire issue for which this form is bein
(c) Stated redemption (d) Weighted
price at maturity average maturity
Room/suite 4 Report number
3
6 Date of issue
03-10-2003
8 CUSIP number
154,742.00
(b) Issue price
(e) Yield
03-10-2008 $ 154,742.00 $ N/A 5
Use~_ of Proceeds of _~ond Issue (including underwriters' discount)
Proceeds used for accrued interest .
Issue price of entire issue (enter amount from line 21, column (b))
Proceeds used for bond issuance costs (including underwriters' discount)
Proceeds used for credit enhancement .
Proceeds allocated to reasonably required reserve or replacement fund
Proceeds used to currently refund prior issues
Proceeds used to advance refund prior issues
Total (add lines 24 through 28) .
Nonrefundin roceeds of the issue (subtract line 29 from line 23 and enter amount here) .
Descr!ption of Refunded ~onds (Complete this part only for r~funding bonds.)
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 Fntor the last date on which the refunded bonds will be called Ii'-
34 Enter the date(s) the refunded bonds were issued ~
~:IiTi./j. Miscel~<!neous _ __
35 Enter ttle amount of the state volume cap allOCated to the issue under section 141 (b)(5) . . .t=35
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 ~ 0 and enter the name of the
issuer ~ _.... and the date of the issue ~
If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception). check box ~ D
If the issuer has elected to pay a penalty in lieu of arbitrage rebate, cheCk box ~ D
If the issuer tlaS identified a hed e, clleck box ~ 0
Under penalties of pcrjury, I declare that I have examined this return and accompanying schedulcs and statements. and to the best of my knowledge
and belief. they are true. correct. and complete.
ears
4.0 %
22
23
24
25
26
27
28
29
30
24
25
26
27
28
N/A
154,742.00
o
154,742.00
N/A
years
years
38
39
40
Sign
Here
\. \
~...-- '.
. . .. .,-\ ....- . -----_..---
Signature 0; ;~~:r'~ authoriled representative
March 28, 2003 ~ Clark V. Johnson, City ~anager
Date ,. Type or print name and title
Cat. No. 63773S Form 8038-G (Rev. 11-2000)
For Paperwork Reduction Act Notice, see page 2 of the Instructions.
*
CATERPILLAR FINANCIAL SERVICES CORPORATION ("CFSC")
CONSTRUCTION EQUIPMENT APPLICATION SURVEY
Page 1 of 2
Customer Name: CITY OF BOZEMAN, MONTANA Location: PO Box 1230, BOZEMAN, MT 59771
Make: Caterpillar Model: l20H Quantity: 1 Serial Number: 6YN00337
Monthly Usage: 42 Current Hours: 0 Dealer: TRACTOR & EQUIPMENT CO DealcrLocation: BlLLINGS, MT
***** IMPORTANT INFORMATION *****
RESIDUAL EXCEPT/ON REQUESTS must be submitted to the CFSC for the fol/owing applications: landfill, transfer and recycling
stations; demolition, scrap yards and steel mills; salt, chemical, and corrosive environments such as feed lots, dairy farms, rendering
plants, mushroom farms, fertilizer and lime handling, salt water areas and al/ hazardous waste handling; dusty or poor underfoot
conditions; al/ underground mining applications. Any applications requiring unusual attachments, equipment mOdifications or have
non-traditional use of the equipment. Any transaction with five or more of one model.
Please COMPLETE TIm ENTIRE SURVEY for all transactions including any of the above applications.
--------.-.. ..-----------.. .-..----------.,',.. ..----------.-- -------------.. ,....----------- -. ---------------......." .....-------------------....,,"..----
-.---------..".' -.------------ -------....". ------------- -----------..'" -.,..------------ -----------.--..."'''.,. '"". ------------
MAJOR ATTACHMENTS ( Check all that applYL
-
0 4 Wheel Drive 0 ..~lope Board
0 Auger 0 Tiller
0 Cab Riser 0 Access Platform
0 Delimber 0 Block Forks
0 Generator 0 Cold Planer
0 Lumber Forks 0 E-Stick
~1:!!BOdY Liner 0 G@lJple
o Rotasaw 0 Magnet
.''''"',,, "'-
Other: .---......
Pallet Forks
Rotator
Snow Plow
Q~_"~andscape Rake 0 Concrete Crusher
0 Metal Shear 0 Forks
0 Ride Control 0 Lon Reach Stick
0 Saw Head 0 Mower
0 Solid Tires ~ Ripper
0 Trencher 0 Shear Head
0 All Wheel Steer 0 S ecial Rims
Cab 0 Winch
o Com actor
o Feller Buncher
BLADES AND BUCKETS ( Check all that apply) :
~~ "PAT" Blade 0 Side Dum Bucket 0 Landlill Bucket 0 Chip Blade
Bottom Dump Bkt 0 "SU" Blade 0 GP Bucket 0 Coal Blade
Ejector Buck"!t 0 Carry Dozer Blade 0 Sla Bucket 0 .._~ulli-Purpose Bkt 0 Hi h Volume Bkt
Landfill Blade 0 Front Dump Bucket 0 "U" Blade 0 Straight Blade 0 Rock Bucket
Other:
MARKET CATAGORIES (Check All That Apply)
o Heav ,Construction - Airports, Bridges, Dams. Highways/Road
o Building Co~~truction . Comm~~ci~, Residential, Utilities
o ~~n_~scape Const~~c.tion - CommerCia.l, Residential
o Mining - Metals. Copper, Gold, Iron, Lead, Silver, Underground, Uranium, Zinc
o Mining - Non.Metal.~_-Clay, Coal, Oil Sand_s-, Oil Shale. Peat, Un2~rground
o Petroleum_&<:;as - Exploratio_~and Development, Pipelines
Quar . Granite, Limestone, Sand & Gravel
Forest P~oducts . Loading, Road Cons!~ction, Skidding, Timber Harvesti~,9_
Forest Products - ~ill and Yard Operations
In ustrial- Dairy/Mushroom Farm, Demolition. Feed Lot, Fertilizer/Lime Handling.
andfills, Rendering Plants, Scrap Handlina._"~teel Mill, Transfer Stations ,_.._."..__
Governmental- R.9.ild}0aintenance, Snow RerrlqyilL
o Re~!al Services - Rental Fle_~ts
This application survey is considered to be an integral part of the lease between the Lessor and Lessee, The information obtained from this survey will be of primary importance in the lease payment
schedule. Any change in the location. severity of application, annual hourly usage and/or attachments or configuration must be approved in writing by Caterpillar Financial Services Corporation.
NOTE: APPLICATION SURVEY MUST BE SIGNED BY LESSEE AND AUTHORIZED DEALER REPRESENTATIVE
SEE REVRRSE SIDE FOR ADDITIONAL TRRMS AND CONDITIONS WHICH ARE PART OF THIS CONTRACT
For the Lessee: (Try OF BOZEMAN, MONTANA
Datc' Ma rch 28, 2003
\
Signature'=~.:_ \ e,.c. ~
Dealer Management Reviewer:
Date:
Signature:
Print Name:
Clark V. Johnson
Print Namel
Titlcl___~i ty ManagE":!r
Company: City_ gf Bozeman, Montana
Title:
Company:___
CFSC Rcviewed bYI
MANDATORY CONDITION OF EQUIPMENT UPONRETlJRN:
Not withstanding the provisions of (check appropriate box):
D Sections 4 and 9 of the Master Tax Lease
D )lections 4 and 9 of the Master Finance Lease
p(( Sections 4 and 9 of the Governmental Lease-Purchase Agreement
Lj
Lessee agrees that each Unit, upon its return, shall:
MAINTENANCE AND GENERAL REQUIREMENTS:
o Give the Lessor sixty (60) days notice prior to the Lease termination date of Lessee's
intention to return any and all units to the Lessor.
o Return the units in the same configuration, with all attachments, as when delivered at
lease inception. Lessee is responsible for costs, including but not limited to, fees,
taxes and duties associated with tear down, loading. shipping and unloading of units to
a site designated by the Lessor.
o Ensure the units upon return are thoroughly cleaned. steam cleaned if available, and
free from all oil, hydraulic and fuel leaks.
o Operate and maintain all units in accordance with Caterpillar Lubrication and
Maintenance and Operators guide books. and insure all maintenance is performed at
recommended intelVals and only genuine Caterpillar filters and parts are used for all
maintenance and repairs. All units must be in good operating condition and be able
to perform all tasks under rated load.
o Enroll all units in a Caterpillar dealer Scheduled Oil Sampling (SOS) or comparable
program. where available, for the entire term of the lease. and insure all fuels,
lubricants, additives, and radiator water is clean and complies with Caterpillar
recommended standards.
o Ensure all units are operated only in the applications for which they were designed and
manufactured.
o Maintain a working engine hour meter at all times. Keep complete records of all hour
meter changes along with major component change outs and routine maintenance and
repair records.
o Ensure all selVice contracts are fully implemented and all maintenance and repairs are
made on schedule. Product Improvement Programs (PIP's) must be complete before
units are returned. ATTACH A COPY OF ANY AND ALL REPAIR AND
MAINTENANCE CONTRACTS AND PLANNED COMPONENT REPLACEMENT
PROGRAMS.
o Provide a secured place to store off-lease units upon request from the Lessor.
Provide access to the units for purposes of maintenance or demonstration to
prospective buyers at Lessor's request.
SPECIFIC TINWARE AND SAFETY REQUIREMENTS:
o Ensure the operator's compartment is clean, and all switches, monitoring systems
(EMS. VIMS. VIDS), gages, control levers, pedals. radio, mirrors, seats, insulation and
all other contents are complete and in good working order.
IJage 2 of 2
D Sections 5 and 12 of the Finance Lease
D Sections 5 and 13 of the Long-Term Rental Agreement
o Ensure all window glass is etear, and free from cracks and major pits, all windOW
frames, doors and weather stripping are complete, and all service access
compartment covers and doors, fenders, and other flat metal or plastic surfaces are in
good working order and free from dents and cracks.
o Ensure all standard Caterpillar and non-Caterpillar safety items are complete and in
good working order, including but not limited to, roll over protection (ROPS) and falling
object protection (FOPS) systems, seat belts, steps, safety rails, grab irons. cat walks.
fire suppression systems. warning alarms, cameras and monitors.
o Ensure all electrical components, including but not limited to. wiring harness, batteries,
alternators, drive belts, lighting and air conditioning systems are complete and in good
working order.
o Ensure all repairs made to main structures. including but not limited to, main frames.
roller frames, car bodies, swing gears, drawbars, circles, component housings, loader
arms, booms, sticks, tag links, loader linkages, truck bodies, buckets. rippers, and
arches must be accomplished in accordance with factory recommended materials and
repair procedures.
REMAINING LIFE REQUIREMENTS:
o Ensure all ground engaging tools, including but not limited to, buckets, dozer blades,
base cutting edges, rippers, scarifiers, drums, feet, tines, screeds, elevator fiights,
forks. and top clamps have good structural integrity and have fifty percent (50%)
minimum remaining life.
o Return all track and rubber belted units with a minimum of fifty percent (50%)
remaining life on each and every component, including but not limited to, track shoes,
links, pins, bushings. idlers, bogies, sprockets, carrier rollers, and track rollers. Belts
can not have any cuts that extend into the cords and must not be missing guide
blocks or grouser bars (lugs). Charges will be assessed for each component not
meeting the requirement.
o Return all rubber tire units with a minimum of fifty percent (50%) remaining life of the
original tread life of each tire. Recapped tires are not acceptable substitutes. All tires
must be a matched set with the same tread type and pattern and have no significant
cuts or chunking of the tread or side walls. Skid Steer tires are exempt from this
provision.
LESSOR RETAINS THE RIGHT TO ASK FOR ANY AND ALL REPAIR AND MAINTENANCE RECORDS DURING THE LEASE TERM
AND/OR LEASE TERMINATION. A FlJLL MACIIINE INSPECTION MAY BE CONDUCTED AT LESSEE'S EXPENSE ANY TIME
EVIDENCE DEMONSTRATES MACHINES ARE BEING ABUSED FROM NEGLECT OR MISAPPLICATION.
---------------~~-_._-~~~--------------------~----~~-~~------------~~~-----~-~--------------------~---
_________________________'W~ft_~,_~~_______________________~~..~~~________________~~~__~~~~,_~~~~_____________---..,.,
REMEDY FOR RETURN CONDITIONS:
Lessee will he invoiced for the parts and labor based on your local Caterpillar dealer's retail prices and retail labor rates to replace tires, undercarriage
components, belts and all other non-conforming components as outlined in the "REMAINING LIFE REQUIREMENTS" section of the Mandatory
Condition of Equipment Upon Return. The invoiced amounts will be based on the following percentages of remaining life and is payable upon receipt of
inVOice:
Life Remaining
50% or greater
31%t049%
0% to 30%
Charge to Lessee
No charge to Lessee
50% charge to Lessee
70% charge to Lessee
---------------..-.,... ,. ' ..----...------------------.- ._._-,------------------_.,.~_.,..._-------------,._.,.','. ... .. . ... ---.----------- - ---
.. . ._ ._n..____________________._. ._._..______________.____.... ....._ ._n..........__.____________.._ ... .....___._____________._..... .........._... . n.. .-----------.- ......-...
MAXIMtlM USAGE: , ,
The model listed and equi~~)d as stated ubove will be operated an estimated total of Lf~__ hours per month over a term of bf2 months for total usage
during the leasing term oh(.,)()O hours. This total usage combined with uny accumulated hours prior to the Lease inception dute, as stated above under
current hours, will be the total allowable machine hours for the life of the Lease and the basis for any overuse charges.
Total Lease Hou...2.5"O.o + Current Hours ----D- = Total Allowable Machine Hours ~~
OVERUSE CALCULATION:
In addition to the Lessor's other rights hereunder and not in lieu thereof, Lessee shal1 pay Lessor additional rent for each hour in excess of the
Total Allowable Machine Hours established for the Lease as stated above. This hourly rate shall be $14.78 per hour. Please note: To avoid
overuse charges, notify Cat Financial immediately of any increase in machine usage that will cause the total usage to exceed the "Total
Allowable Machine Hours" as stated above. The Lease contract will be ad.iusted to reflect the correct hour usage.
EXHIBIT 2 (multiple assets)
Concluding Payment Schedule to
Governmental Agreement
Dated.
__.__.,20_
bel Ween
Caterpillar Financial Scn';.,es Corporation
and
BOZEMAN, CITY OF
Description of Unit; 1 Caterpillar non serial # 6YNtltl337
Number
of
Payments Beginning Payment Intnest Concluding
Made Balance Amount 4.00000% Payment (+)
154,992.00 lR,193.49 0.00 I 36,79R51
2 136,7n.51 18,193.49 5,471.94 124,076.96
124,076.96 18,193.49 4,963.0R 110,846.55
4 110,R4("s5 I R, 193.49 4,43386 97,OR6.92
5 97,086.92 J 8, 193.49 3,R83.48 82,776.91
6 82,776.91 86,088.00 3,311.09 0.00
177,055.45 22,063.45
(+) Ooes not include any rent payment or other amount then due.
IniTialed:'''- .\.- _.
(Lessee)
Cat Quote Soflwarc 8.02
452-440 Page 1
Caterpillar Financial Services COrporation
CATERPILLAR FINANCIAL SERVICES CORPORATION
GOVERNMENTAL LEASE-PURCHASE AGREEMENT
Du ted as of
LESSEE:
CITY OF BOZEMAN, MONTANA
LESSOR:
CATERPILLAR FINANCIAL SERVICES CORPORATION
"A political ugency or subdivision of the State of Montana"
ADDRESS 411 EAST MAIN STREET
BOZEMAN, MT 59771-1230
ADDRESS: 2120 West End Avenue
Nashville, TN 37203
Lessor, in reliance on Lessee's selection of the equipment described below ("Unit" or "Units"), agrees to acquire, lease, let and sell the Units to Lessee, and Lessee agrees to
rent, lease, hire und purchase the Units from Lessor.
Descrllltion of Unites)
(I) New 120H
Caterpillar Motor Grader
Serial#
6YN00337
Location oftJnit(s): PO Box 1230
BOZEMAN, MT 59771, GALLATIN
l'aymeJlt Schedule attached.
PAYMENT PROVISION:
Lessee shall pay to Lessor payments (including the principal and interest portion) in 5 consecutive annual installments commencing _____._____.
ADDITIONAL I'ROVISIONS: RIDERS:
Lease Term: 60 Months
Utilization Date: March 31, 2003
TERMS AND CONDITIONS
I. LEASE TERM; NON-APPROPRIATIONS: The Lease term for each Unit shall commence on its "Delivery Date" (which is the later of the datc on which (a) Lessor
executes this Lease, (b) Lessor takes title to the Unit, or (c) Lessee or its agent receives possession or takes control of the Unit, provided the Delivery Date is on or prior to
the Credit Utilization Date set forth above) and shall continue through the last day of Lessee's fiscal year in which the Delivery Date occurs and, thereafter, shall
automatically be extended for successive annual periods coinciding with Lessee's fiscal years. If the Delivery Date is not on or prior to the Credit Utilization Date, Lessee
shall, at the option of Lessor, assume Lessor's obligations to purchase and pay for the Unit. Within seven days following thc Delivery Date of each Unit, Lessee shall
execute and deliver to Lcssor a Delivcry Supplemcnt using Lessor's standard form. In the event no funds or insufficient funds are appropriated and budgeted or arc
otherwise not available in any IIscal year for payments due under this Lease, Lessee will immediately notify Lessor of such occurrence and this Lease shall terminate on
the last day of the fiscal year for which appropriations were received without penalty or expense to Lessee, except as to the portions of payments herein agreed upon for
which funds shall have heen appropriated and Inldgeted or are otherwise available. Notwithstanding the f\lregoing, Lessce agrccs that, to the extent permitted by law, it
will not cancellhe I~ease under the provisions of this Section I ifany funds are appropriated to it or by it for the acquisition, retention or operation of the Units or other
cquipment perf,-,rming functions similar to the Units for the fiscal year in which termination occurs or the next succeeding fiscal year.
2. PAYMENTS; NET LFASE: During thc Lease term, Lessce shall pay to Lessor, at, rent for each Unit as stated in the attached Payment Schedule and according to the
above Payment Provision. An amount equal to One payment f'lr all of the Units must accompany this Lease. If I ~eSsnr accepts and cxeeutes this Lcasc, said amount shall
he applied to the fIrst payment due. If Lessor does not execute this Lease, said amount will be returned to Lessee. If Lessor does not receive a payment on the date it is
due, Lessee shall pay to Lessor, on demand, a late payment charge equal to the lesser of five percent (5%) of the payment not paid whcn due or the highest charge allowed
by law, whichever is less. This Leasc is a net lease, and Lessee shall not be entitled to any abatement or reduction of paymcnt or any sctoff against payment, whether
arising by reason of any past, present or future claims of any nature hy Lessee against Lessor or otherwise. Except as otherwise expressly provided herein, the obligations
of Lessor and Lessee shall not be affected by an defect in, damage to, loss of possession or use of any Unit, howcver caused, by the attachment of any lien or other claim to
any Unit, by any interference with Lessee's use of the Unit, or for any other cause, whether similar or dissimilar to the f()regoing, any present or future law to the contrary
notwithstanding.
3. DISCLAIMER OF WARRANTlFS: Lessee acknowledges and agrees that Lessor is not the manufacturer of the Unites) and that Lessee has s~lceted each Unit based
on Lessee's own judgment without any reliance whatsoever on any statements or representations made by Lessor. AS BETWEEN LESSOR AND LESSEF, THF UNIT(S)
ARE PROVIDED "AS IS" WITHOUT ANY WARRANTIES OF ANY KIND. LESSOR HEREBY EXPRESSLY DISCLAIMS a) ALL WARRANTIES OF
MERCIIANTABILlTY, b) ALL WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, AND e) ALL WARRANTIES AGAINST INFRINGEMENT OR
TilE UKF'. Lessor assigns to Lcssee its interest in any of thc manufacturer's warranties on the Units(s).
4. POSSRSSION, lISE AND MAINTENANCE: Lessee shall not (a) use, operate, maintain or store any Unit improperly, carelessly, unsafely or in violation of any
applicable law or regulation or fi)r any purpose other than in the conduct of Lessee's husiness; (b) abandon any Unit; (c) sublease any Unit, permit the use of any Unit by
anyone other than Lessee, changc thc use of any Unit fro!)l that specifIed in the attachcd Application Survey/Usagc Rider, or change the location of any Unit Irom that
specified above, without the prior writtcn consent of Lessor, or (d) scll, assign or transfer, or directly or indirectly create or suffer to exist any lien, claim, security interest
or encumbrance on any of its rights hereunder or in any Unit. The Units are ,1I1d shall remain personal property irrespective of their usc or manner of attachment to realty.
Upon prior noticc to Lcssee, Lessor or its agent shall have the right (but not the obligation) at all reasonable times to inspect any Unit and maintenance records relating
thereto. Lessee shall, at its expcnse and at all times during the lease term, maintain the Units in good operating order, repair and condition and shall perform maintenance
at least as frequently as set forth in any aprlieable operator's guide, service manual, and lubrication and maintenance guide for the Units. Lessee shall not alter any Unit or
affix any accessory or equipmcnt to any Unit if such alteration or addition would impair the originally intended function or use or rcduce the value of such Unit. Any
alteration or addition to any Unit shall bc thc responsibility of and at the sole risk of Lessee All parts, accessories and equipment affixed to any Unit shall be subject to thc
security interest of Lessor granted hercunder. If Lessor supplics Lessee with labels stating that the Unit is leased from Lessor, Lesscc shall affix and keep them in a
prominent place on the Unit.
SEE REVERSE SIDE FOR ADDITIONAL TERMS AND CONDITIONS
LESSEE ACKNOWLEDGES HAVING IH:O:IVED A FULLV COMPLETED AND EXF:C1ITED COpy OF THIS AGRERMENT
Lessee: CITY OF BOZEMAN, MONTANA
Lessor: CATERPILLAR FINANCIAL SERVICES CORPORATION
\
131'-'-":\
---- \
,_.., ~-~-~~.....-""
By
Namc (PRfNT)
Clark V. Johnson
Name (PRINT)__
Title
City Manager
March 28, 2003
Title
Date
Datc
FOl1l1NIl,(i()VIll>.lOlOI
4~J44() 1:40()1'1(!l IWlllrl()u:l ]:l{d~ I'M CT
5. LESSEE'S REPRESENTATION AND WARRANTIES, Lessee represents and wamll1ts 10 Lessor lhat (a) Lessee is a fully constituted political subdivision or agene.y duly organized and
existing under the Constitution and laws of the state where the Units will be loe.ated; (b) Lessee has the power to enter into and perform this Lease 'll1d has taken all necessary and appropriate action
to authorize the execution, delivery and perfomlance hereof; (c) this Lease constitutes a valid and legally binding and enforce"bic obligation of Lessee; (d) the interest payable by Lessee hereunder
is excludable from income for Fcderal income taxation purposes pursuant to Section 103 of the lntenlal Revenue Code of 1986, as amended (the "Code"); and (e) Lessee has sufficient
appropriations or other funds available to pay all amounts duc hereunder for the current fise.al year and reasonably believes that funds e.an be obtained sufficient to make all paymcnts during the term
of this Lease. Lessee represents that the use of the Units is essential to Lessee's proper, efficient and economic operation. Lessee acknowledges and agrecs that the payments have been e.alc.ulated
by Lessor assuming that the interest ponion of each payment is excludable from gross income for Federal income taxation purposes. I.essee reprcscnts, warrants and covenants that: (a) Lessee will
comply with the infomlation reporting requirements of Scction 149(e) of the Code, as the same may be amended from time to time, and such compliance shall include but not be limited to thc
execution of information statemems requested by Lessor; (b) Lessee will not do or e.ause to be done any act which will cause, or by omission of any act allow, the Lease to be an arbitrage bond
within the meaning ofSee.tion148(a) of the Code; (c) Lessee will not do orcauSe to be done any act which will cause, orby omission of any act allow this Lease to be a private activity bond wilhin
the meaning ofSectionI41(a) of the Code; (d) Lessee will timely pay to the extent of available funds, amounts required to be rebated 10 the United States pursuanllo Se"tinn 14R(l) of the Code; (e)
Lessee will not do or e.ause to be done any act whic.h will cause, or by omission of any act allow. Ihe inleresl portion of the payments 10 be or hecome inc.ludable in gros., income for Federal income
taxation purposes under the Code; and (I) Lessee will be the exclusive owner, user and operator of the Units, Lessee shall provide 10 Lessor an opinion of "'-Hlllsel substantially ill the fOnll atlached
hereto,
6. TAXES: Lessee "gn~es to promptly P~IY or reimburse Lessor for all fees 31ld taxes of any nature, together with any penalties, fines ot additions to tllX, or interest 1her!::(l1l (all of the foregoing
hereafter the ulmpositiollSIt)l arising at any time prior to, during or subsequent to the Lease ternl and levied by any taxing authority with respect to 01' in connection with any Unit., cxcludillg,
however, taxes llle(lsured by Lessor's net illcomc (ofbllt not excluding any net income taxes which. by the teml of the statue imposing such tax, txprc.~sly relieve Lessee or Lessor from the payment
of any Imposition, which Lessee would otherwise be obligated to payor reimburse), If Lessor is nOI entitled to a Corresp(n,ding and equal deduc.tion with respect 10 any Imposition which Lessce is
required to payor reimburse and such payment or reimbursement constitutes income to Lessor, then Lessee shall also pay to Lessor the amount of llllY Impositions which Les.~or is obligated to pJ.Y
in respect of (a) sue.h payment or reimbursement by Lessee and (b) any payment hy Lessee made pursuant to this sentence, Lessee shall prepare and file, in a manner satisfactory to Lessor. any
repons or retums which may be required with respect to the Units. For purposes of this Section, "Lessor" shall im,lude any affiliated group, within the meaning of Section I ~04 of lhe Code, of
whie.h Lessor is a member for any year in which a consolidated or e.ombined income tax retum is filed for the affiliated group.
7. LOSS OR DAMAGE; INSURANCE, Lessee aSSumes all risks and liabilities of loss, damage or Casualty Occnrrence (as hereinafter defined) for any cause whatsoever, for condemnation or
any Unit prior to, during or subscyucllt to (until the Unit is rctumed to Lessor pursuant to Section 10) the Lease ten'n, and for injury to or death of any person or J:lI11agc to allY property in any
manner arising (HIt of Ot incidC:llt to the possession, Lise; operation, condition or stomge of the l)J1it. If any Unit hecomes damagedl from any cause wlwtsocvcr, LI:$scl.: shall give Lessor prompt
notice thereof. If Lessor reasonably detenllines that SIIc:h damage is nO! irreparahle, then Lessee shall, at its expense. promptly rl.:stc,)n~ the Ullit to the condition required by Section 4 rlbove. If ;1I1Y
Unit becomes wom out, lust, stolen. destroyed ur irreparably damaged (as reasonably detennined by Lessot) frmJ'\ any cause whatsoever; or taken hy condemnation or olhcrwisc ((IllY .~llch
nCcurrCIlC.C hereafter a !!Casualty Occurrence") prior to, during or subsequent to (ulltil the Unit is rctLlnH~d to Lessor pursuant to Section 1 0) th~ l..cll~e Icnll, 1.t.:."iSCC shall give Lessor prolllpt notice
thereat: In the event of a Casualty Occurrence, Lessce shall pay to Lessor, nn the earlier of (a) the first payment date followillg Sileh Casualty Oceu"ence or (b) thiny (30) days following Sllel1
Ca~uahy Occun'enct:, a sum (the ITenniniltioll Value") equal to (a) the "Beginning Bah.ll1(;',e,j (a~ ~pl.:cificd in the attached Payment Schedule) llS of the next paymcnt Jue following sLlch (:Jsualty
Occurren(~e, plus (b) the nmount of the intl.:tl::st portion (as specificd ill the Payment Schedule) of the next paYIl1~nt due following such Casualty Occunence multiplied times 11 fradiC)Ji till.: IHHllcrntof
of which is the 1Iumber of days from the later of (a) the Delivery Date of the Unit or (b) the due date of the payment immediately preceding SII"h Casualty Occurrence until the due date of the
payment due hereunder in respecl of such Casualty Occurrence and the denominator of which is 360. Lessee. al ils expcnse, shall keep each Unit insured against all risks for not less than thc
applicable Beginning Balance with respecllo sll"h Uoit imd shall maintain comprehensive public liability insurance ""vcring ca"h Unit til' not less than $1,000.000 for combined "ovcrage for hodily
injury and property damage. All ins"",nec shall (a) be in a fonn and with such companies as Lessor shall approve, (b) specify Lessor (or its designee) and Lessce as named insureds, (c) he I)f"imary,
without right of contribution from any other insurance carried by Lessor, (d) provide that such insurance may not he cane.elled or altered so as 10 affeett,," interest of Lessor without at least thirty
(30) days' prior written notice to Lessor, and (e) name Lessor (or its designee) as loss payee and be payable solely to Lessor. Lessee agrees to I10tify Lessor of any occurrence which may teemne
the basis of ,In insurance clainl hereunder and not to make any adjusnnents with insurers without Lessor's prior written consent. Lessee hereby inevocubly appoillts Lcssor its attorney-in-fact to
re"eive payment of and endorse all checks and other documents and to take any olher actions necessary to pursue insurance c.Iaims, Prior to the firsl Delivery Date of any Unit, Lessee shall delivery
to l.c%or satisfactory evidence of such insurance coverage.
8. WAIVER AND INDEMNITY: LESSEE HEREBY AGREES TO RELEASE, DEFEND, INDEMNIFY AND HOLD HARMI.ESS LESSOR, ITS DIRECTORS, OFFICERS,
EMI'LOYEES, AGENTS AND ASSIGNS FROM AND AGAINST ANY CLAIMS OF LESSEE OR THIRD l'AlnIES, INCLUDING CLAIMS HASE)) !lPON BREACH OF
CONTRACT, BREACH Of WARRANTY, PERSONAL IN.JURY, PROPERTY DAMAGE, STRICT LIABILITY OR NEGLlGFNCE, FOR ANY LOSS, DAMAGE OR IN.IIIRY
CAUSED BY OR RELATING TO THE DESIGN, MANUFACTURF:, SELECTION, DELIVERY, CONDITION, OPF:RATlON, USE, OWNERSHIP, MAINTF:NANCE OR REPAIR
Of ANY !IN]T, FURTHER, LESSEE AGREES TO BE RESPONSIBLE FOR ALL COSTS AND EXI'ENSES, INCLUDING REASONABLE ATTORNEYS' FEES, INClIRRF:D BY
LESSOR OR ITS DIRECTORS, OFF]CERS, EMPLOYEES, AGENTS AND ASSIGNS IN DF:FENDING SIICH CLAIMS OR IN ENFORC]NG TIllS I'ROVISION. UNDER NO
CONDITION OR CAUSE OF ACTION SHALL LESSOR BE LIABLE FOR ANY l.OSS OF ACTUAL OR ANTICIPATE)) BUSINESS OR PROFITS OR ANY srFClAL, INDIRECT
OR CONSEQUFNTlAl. DAMAGES.
9. EVENTS OF DEFAULT; REMEDIES: Each of the following shall constitute an "Event of Default" hereunder: (a) Lessee shall fail to make any paymcnt 10 Lessor when due; (b) any
representation or walTanty of Lessee contained herein or in any document fumished to lessor in connection herewith shall be incorrect or misleading when made; (c) Lcssee shall fail to observe or
pedonn any other covenant, agrecment or warranty made by Lessee hereunder and such failure shall colltinue for ten (10) days after written notice Ihereof to Lessee; (d) Lessee shall fail to make
any payment on its bonded indebtedness when due; or (el there shall be a default by Lessee under any other agreement between Lessor al1d Lessee. Jf any Event of Default shall occur, Lessor, at its
optiol1, may (a) proceed by appropriate court action(s) to enfore.e this Lease or to recover damages for the breach thereof; (b) by notice in writing to Lessee. tem1il1ate this Lease, but Lessee shall
remain liable as hereinafter provided, and there upon Lessor l11ay, at its option do anyone or 1110l'e of the following: (b" I) recover forthwith from Lessee (i) any and all amounts then due under this
Lc~se or which rnay have accrued to the date of such termination; (ii) as damages for loss {)f the bargain and 11<,)t a.~ a penalty, a sum equal to the payments due with respect to the Units and
additional security during the balance of the fiscal year, and (iii) any addilional damages and expenses sustained by Lessor by reason of the breach of any covenant, represenlation or warrallly
contained in this Lease other than for the payule"t of amollnts due hereunder; (b-2) enforce the security inlerest given hereunder, (b-3) without notice. liability or legal process, elller upon the
premises where any of the Units 01' additional secmity may be ,md take pO$$cssiou thereof, and (b-4) require Lessee to retum the Units a11d additiollal security as provided in Sel'tion 10. Lessor shall
have all rights givcn to a se"med party by law. Provided Lessor receives possession of the Unils ,(nd additional security following an Event of Defal"l, Lessor may, at its option, undertake
"onllnereially reasonable effon to sell or re-lease the Units and additional security, and the proceeds of any such sale or re-lease shall be applied. first, to reimburse Lessor for all reasonahlc
expenses of retaking, bolding, preparing for sule or re-lease and selling or re-Ieasing the Units and additional security, including all taxes and reasonable allomey's fee, alld cxpenses; see.ond, to the
extelllnot previously paid by Lessee, to pay Lessor all amounts, e~eept those spee.ified below, which under the temlS of this Lease are due or have accrued as of Ihe date of Lessor's receipl of said
prol'eeds; third, 10 pay all late payment charges pursuant to Section 2 hereof; and fourth, to pay Lessor the applicable Temlination Value witl] respect to the Units. Any surplus shall be paid to the
perSOll elltitled thcreto. Lessee shall promptly pay any deficiency to Lessor. Lessee acknowledges that sales for cash or on credit to a wholesaler, retailer or user of the UlIits are all cOlllmercially
reasonable, Lessee agrees to pay all reason,lblc atton'ICy's ft:es and all costs and expenses incurred by Lessor in enforcing this Lease. The remedies herein provided shall be cumulative and in
addition to all olher remedies allaw or in equity: provided, however, Lessor shall not be entitled to recover a greater amount in damages than Lessor could have gnined through Lessee's full, timely
and complete perfon"ance under this Lease, plus all fees, costs and expenses incurred by Lessor in enforcing Ihis Lease and all late payment charges pursua"t to Section 2, If Lessee fails to
perfoml any of its obligations under Ihis Lease, LesS(>r may (but need not) at any time thereafter perfo"" such obligation, and Ihe expenses incurred in connection therewith ,hall be payable by
Lessee upon demalld.
10. RETURN OF UNIT: Upon any temlination of the te"" of this Lease with respect to each Unit or if Lessor shall rightfully demand possession of any Unit, Lessee, at its expense, shall
fOl1hwith deliver the Unit to Lessor, appropriately protected and in the condition required by Section 4, at the option of Lessor, to the premises of the nearesl Caterpillar dealer selling equipment of
the same type as the Unit, or on board such carrier as Lessor shall specify ,,,,d shipping the same, freight collect, to the destination designated by Lessor. If the Unit is not in the <'OnditiOIl required
by Section 4, Lessee shall pay to Lessor, on demand, all costs and expenses incurred by Lessor 10 bring the Unit into said c.ondition,
II. REPORT TO IRS: Lessee will report this Lease to the 1ntemal Revenue Service hy filillg 1'oml 8038-G, 803R.GC or R03R whichever is applieabk Failure to do so will cause the Lease to
lose its tax exempt status. Lessee agrees that if the appropriate foml is not filed, the interest rate will be adjusted to an equivalent taxable imerest rate.
12. TITLE, SECURITY INTEREST AND FURTHER ASSURANCES: Provided (a) Lessee has accepted eacllUnit Oil its delivery date; (b) tl,. Delivery Date of the Unit is 011 or prior to the
Credit Utilization Date nOled on Ihe f:oce hereof: and (e.) no Event of Defaull exists as of the Delivery Date of the Unit, title to each Unit shall vest in Lessee on lhe Delivery Date of the Unit.
provided, however, t.hat in the cvent (i) this Lease is tenninated purs"ant to Section 1 hereof, or (ii) an Evelll of Default has occurred and is eontinuillg, title to the Unit shall immediately revest in
Lessor, tree of any right, title and interest of Lessee, unless Lessor elee.ts olherwise in writing. Lessee hereby grants to Lessor a continuing security inlerest ill the llnits, including all :lttachments,
accessories and optional features (whether or not installed thereol1) and all substitutionsj replacements, additions and accessions thereto, and all proceeds of all of the foregoingl i1lCluding, but not
limited to, proceeds in the foml of chattel paper to secure the payment of all SnmS dele. Lessee will, at its expense, do any funher act and exe"lIte, acknowledge, deliver, file, register and record any
further documcl1t.~ which Lessor may reasonable request in order to protect Lessor's security interest in thc t)llits and Lessor's rights and bCllcfits under this Leuse. Le$Sl.:c hereby appoints Lessor as
Lessee's Attomey-in-Fact for thE:': signing and filing of sllch documents und authorizes Lessor to delegate these limited powers. Lessee further represents and warrants to Lessor that Lessee is and
shall remain a Govemmental registered in the state of MT ("Business Location"); and Lessee will not change its foml of business organization or Business Loc:ltion without prior wrillen notice to
Lessor.
13. ASSIG7'lMENT; COIJNTERPARTS, Withoulthe prior written consent of Lessor, no assignment of this Lease or any right or obligation hereunder may be made by Lessee or any assigllce of
Lessee, Lessor may not assign its right, title and interest in and to this Lease and the Unils and/or grant or assign a security interest in this Lease and the tlllits, in whole or in part. Although
multiple counterparts of this documenlll1ay be signed, only the counterpan accepted, acknowledged and cenified by Caterpillar FinanciaJ Services Corporation on the signalure p:lge thereof as the
original will constitute original chattel paper.
14. EFFECT OF WAIVER: No del:oy or omission to exercise any right or remedy accruing to Lessor hereunder shall impair any such right or remedy nor shall it be e.onstrued to be a waiver of
any breach or default of Lessee. Any waiver or consent by Lessor under this Lease must be in writing specifically set fonh. This Lease completely states the rights of Lessor and Lessee with
respect to the Units and supersedes all prior agreements with respect thereto, Time is of the essence of this Lease. No variation or modificalion of this Lease shall be valid unless in writing and
siglled hy the authorized representatives of Lessor and Lessee. All noti"es hereunder shall be in writing, addressed to each pany at the address set forth on the front of this Leas, 01' at such olher
address as may be fumished in writing. If any provision of this Lease shall he invalid under any applicable law, such provision shall be deemed omitted bUlthe remaining provisions shall be given
effect. All obligation of Lessee under this Lease ,hall survive the expiration or temlillation of this Lease to the extellt required for their full observallee and perfonnance,
]5. GENERAL, This Lease shall be govemed by and construed under the laws of the State where the Units are located.
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