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HomeMy Public PortalAbout2013.10.15 CAT Governmental Equipment Lease-Purchase Agreement CAT. ESTATES Western States Equipment Co. General Office October 15th 2013 P.O.Box 38 Boise,ID 83707-0038 City Of McCall 216 E Park St McCall Idaho 83638 Gentlemen: Please accept this letter as a guarantee for purchase of your Caterpillar Model 950UT Wheel Loader, Serial Number R4A02015 this guarantee is made in conjunction with the Machine Warranty. We agree to purchase this unit from you at the end of the five years for the amount of$ 182,000 based on a maximum of 5,000 S.M.U.'s. If the time period or service meter unit limits are exceeded the above machine will be appraised to determine a new value. Lessee agrees that each Unit, upon its return, shall: 1. Be in sound mechanical condition and to be in good working order under full load. 2. Have the same attachments and piece parts as when delivered. 3. a. Have tires in safe and operable condition with a minimum of (40%) of wear remaining tread life. OR b. Have a minimum of forty percent(40%) life remaining on all undercarriage components including track shoes, links, pins and bushings, idlers, bogies, sprockets, carrier rollers, track rollers; 4. Have no cracked or broken glass; 5. Have no missing sheet metal and any damage to sheet metal; 6. Have no structural damage to frame. 7. Have met the full requirement of the warranty procedures, including scheduled oil sampling at the prescribed intervals. 8. Have no damage or modification to machine ROPS (roll over protection structure)per Caterpillar guidelines, repair or replacement of ROPS will be billed at time of return. We require thirty(30) days written notice if you choose to exercise this guarantee and transfer title of the above-described equipment to Western States Equipment Company. If you have any questions or if we may be of further assistance,please call. Sincerely, J. D ing Dye es Vice President &Treasurer Used quip nt Manager Hayden,ID Idaho Falls,ID Lewiston,ID Meridian,ID Pocatello,ID Twin Falls,ID 208.762.6690 208.552.2287 208.746.3301 208.888.2287 208.232.2640 208.734.7330 Kalispell,MT Missoula,MT LaGrande,OR Pendleton,OR Pasco,WA Spokane,WA 406.752.3030 406.721.4050 541.963.3101 541.276.5812 509.547.9541 509.535.1744 Explanation of Content CAT© Transaction Number 2120023 Financial Thank you for selecting Caterpillar products and for allowing Caterpillar Financial Services Corporation to serve your financing needs. Included in this document package are all of the forms that will be needed for standard tax exempt lease purchase transactions. The forms have been designed to be clear,concise and user friendly. We have also provided a brief explanation of the purpose of each form. If you wish to discuss any of the forms or have any questions about any aspect of this transaction, we encourage you to contact your Caterpillar Dealer or Caterpillar Financial Services Corporation at 1-866-263-3791 Option#5. A. Governmental Equipment Lease-Purchase Agreement. The Governmental Lease-Purchase Agreement contains the terms that govern each transaction between us. It is the standard Caterpillar Financial Services Corporation tax exempt lease-purchase agreement,and provides that we will lease to you the equipment described therein pursuant to a full payout amortization schedule. A new Govemmental Equipment Lease-Purchase Agreement will have to be signed in connection with each transaction. B. Lessee's Authorizing Resolution. The Authorizing Resolution is evidence you have taken the necessary goveming body actions to approve the Govemmental Equipment Lease-Purchase Agreement. Although the authorizing instrument is often a resolution, it may also take other forms such as an ordinance.We are agreeable to using your customary or standard form provided it contains specific approval for the lease-purchase agreement, designates persons who are authorized to sign on your behalf and either approves the document forms or delegates this authority to a named official C. Verification of Insurance.The Certificate of Insurance is intended to supply information regarding the insurance coverage for the equipment being lease-purchased. You will need to supply the requested information to us so we can verify coverage. D. Opinion of Counsel. An opinion of counsel is required in connection with each Govemmental Equipment Lease-Purchase Agreement. The opinion is intended to confirm that you have complied with all open meeting laws, publication and notice requirements, procedural rules for governing body meetings,and any other relevant state or local government statutes,ordinances,rules or regulations. We would be unable to confirm compliance with these laws and regulations ourselves absent long delays and higher costs so we rely upon the opinion of your attorney since he/she may have been involved in the process to approve our transaction and is an expert in the laws and regulations to which you are subject. The opinion also confirms that you are an entity eligible to issue tax-exempt obligations and that the Governmental Equipment Lease-Purchase Agreement will be treated as tax-exempt as it is your obligation to ensure that you have complied with relevant tax law. E. Form of 8038G or GC. Form 8038 is required by the Internal Revenue Service in order to monitor the amount of tax-exempt obligations issued. You have to execute a Form 8038 for each Governmental Equipment Lease-Purchase Agreement.Whether a Form 8038 G or GC is required depends on the original principal amount of the Governmental Equipment Lease-Purchase Agreement. If the original principal amount is less than $100,000 Form 8038GC is filed with the IRS. If the original principal amount is $100,000 or more Form 8038G is filed with the IRS. Choose the appropriate 8038 form and complete according to IRS guidelines. Contact your TM or Sales Support Representative for assistance. IRS Form 8038G htto://www.irs.gov/pubfirs-pdf/f80389.0f IRS Form 8038GC http://www.irs.gov/pub/irs-pdf/f8038gc.pdf This Explanation of Contents is prepared as an accommodation to the parties named herein.It is intended as an example of some of the documents that Caterpillar Financial Services Corporation, in its reasonable judgment, may require and is not intended to constitute legal advice. Please engage and use your own legal counsel. We understand that the laws of the various states are different so nothing herein shall be construed as a warranty or representation that the documents listed herein are the only documents that may be required in any particular transaction or that any particular transaction, if documented in accordance with this Explanation of Contents,will be a valid, binding and enforceable obligation enforceable against the parties named herein in accordance with the terms of the documents named herein. Form No.RPGOVCOV 385662610/112013 922 AM CT DOCUMENT CHECKLIST(GOVERNMENTAL LEASE) CAT® Transaction Number 2120023 Quote Number 3856626 Financial These documents were prepared especially for: CITY OF MCCALL 216 EAST PARK STREET MCCALL, ID 83638 Dealer:WESTERN STATES EQUIPMENT CO.,H510 Date: 10/11/2013 Time:9:22 AM Comments:CHAD ALLEN Customer Executed Documents Comments ❑ Lease Purchase Document ❑ Delivery Certification O Insurance Verification O 8038G or 8038GC O Advance Payment(cross out if N/A) ❑ Customer Information Verification ❑ Tax Exemption Certificate ❑ Any necessary Riders/Amendments ❑ Lessee's Resolution+Minutes of Meeting OR ❑ Opinion of Lessee's Counsel ❑ Copy of Driver's License(Sole Proprietorships and Individuals) Dealer Executed Documents Comments ❑ Purchase Agreement ❑ Dealer Invoice ❑ All Credit Conditions Met *If any of these documents are altered, or if the Buyer wishes to add or delete documents,please contact your CFSC Credit Analyst to obtain acceptance of any and all changes. Form No.RPGVCKIST 385802010H1I2013922 AM CT IDAutomation.com DE liii i iA 4�t 1}AN III CAT'A SALES AGREEMENT DATE Oct 10, 2013 WESTERN STATES EQUIPMENT COMPANY,500 E.OVERLAND ROAD,MERIDIAN,ID 83642 PURCHASER CITY OF MC CALL STREET ADDRESS 216 E PARK ST <SAME> S S O CITY/STATE MC, ID COUNTY VALLEY (92S) H L I D POSTAL CODE 83638 PHONE NO. 208 634 7142 P T EQUIPMENT Peter Borner T O CUSTOMER CONTACT: 0 PRODUCT SUPPORT Peter Borner F.O.B.AT: City of McCall INDUSTRY CODE: CITY/LOCAL GOVERNMENT(PS93) PRINCIPAL WORK CODE GOVERMENTAL(A30) CUSTOMER 5684800 Sales Tax Exemption#(if applicable) CUSTOMER PO NUMBER NUMBER N/A PAYMENT TERMS: (All terms and payments are subject to Finance Company-OAC approval) E NET PAYMENT ON RECEIPT OF INVOICE Q NET ON DELIVERY ❑ FINANCIAL SERVICES 0 CSC ❑LEASE M• CASH WITH ORDER $0.00 BALANCE TO FINANCE $0.00 CONTRACT INTEREST RATE 0% PAYMENT PERIOD PAYMENT AMOUNT $0.00 NUMBER OF PAYMENTS 0 OPTIONAL BUY-OUT DESCRIPTION OF EQUIPMENT ORDERED I PURCHASED MAKE: CATERPILLAR MODEL: 950K UT YEAR: 2013 STOCK NUMBER: G027448 SERIAL NUMBER: 0R4A02015 / • 950K WHEEL LOADER QUICK COUPLER, FUSION, 3V HYDRAULICS, 3V, RIDE CONTROL BUCKET-GP, 4.25 CYD STEERING, HMU TIRES, 23.5R25 * VJT BS L3 CUTTING EDGE, BOLT-ON _ COMFORT PACKAGE POWER & TRACTION PACKAGE JOYSTICK, 3 VALVE (SW) SEAT BELT, 3" WIDE COOLING, HIGH AMBIENT GUARD, POWERTRAIN • REGIONAL PKG, NACD AXLES, LSD/LSD, ED COLD START PACKAGE (120V) DOMESTIC TRUCK LANE 2 ORDER YEAR TRADE-IN EQUIPMENT SERIAL NO. Sell Price $257,014.00 1980 930 - CATERPILLAR(AA) 41K10292 Less Gross Trade Allowance ($75,000.00) 1976 966 - CATERPILLAR(AA) 76J14380 After Tax Balance $182,014.00 ALL TRADES-INS ARE SUBJECT TO EQUIPMENT BEING IN"AS INSPECTED CONDITION"BY VENDOR AT TIME OF DELIVERY OF REPLACEMENT MACHINE PURCHASE ABOVE. GROSS TRADE ALLOWANCE PAYOUT TO AMOUNT OWING CUSTOMER TO PAYOUT ❑ WESTERN STATES CO.TO PAY OUT ❑ PURCHASER HEREBY SELLS THE TRADE-IN EQUIPMENT DESCRIBED ABOVE TO THE VENDOR AND WARRANTS IT TO BE FRFF AND CI FAR OF Al I Cl AIMS I IFNS MORTOAOFS ANTI SFCI IRITY INTFRFST FXCFPT AS SHOWN AROVF Q CATERPILLAR EQUIPMENT WARRANTY 0 USED EQUIPMENT WARRANTY INITIAL The customer acknowledges that he has received a copy of the Western States Co./Caterpillar Warranty and has read and understood said All used equipment is sold as is where is and no warranty is offered or implied except as warranty.Scheduled oil sampling(S.O.S.)is mandatory with this warranty.The customer Is responsible for taking oil samples at designated specified here: intervals from all power train components and failure to do so may result in voiding the warranty. Warranty applicable including experation date where necessary: Warranty applicable: 12 months Unlimited hours full machine 5 year 5,000 hr Failsafe Warranty ❑ALLIED WARRANTY SIGNATURE GSA: NOTES: THIS AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS ON THE REVERSE PURCHASER WESTERN STATES EQUIPMENT COMPANY APPROVED AND ACCEPTED ON ORDER RECEIVED BY Chad Allen REPRESENTATIVE CITY OF MC CALL de PURCHASER BY SIOVNATTUU''''``f''**e TERMS AND CONDITIONS 1. METHODS OF ACCEPTANCE and TERMS OF AGREEMENT: This Machine Sales Order("MSO") is an offer for the sale of the equipment and attachments described on the face hereof(referred to herein generally as"equipment"and"goods"interchangeably)to Customer under the terms and conditions specified herein. This offer may be,accepted by(1)the execution of this MSO by a representative of Customer or(2)Customer's verbal or written authorizations or conduct consistent with prior course of dealing between the parts authorizing WSECO to take action to fulfill this order, or(3)the commencement of manufacture or shipment of the goods or services specified in this Order, whichever of the foregoing first occurs.Acceptance of this offer is limited to the express terms stated in this Order.Any proposal in Buyer's acceptance for additional or different terms or any attempt by Customer to vary in any degree any of the terms or any attempt by Customer to vary in any degree any of the terms of this offer is objected to and hereby rejected, but such proposals shall not operate as a rejection of this offer, unless such variances are in the terms of the description,quantity,price or delivery schedule of the goods or services,but shall be deemed a material alteration of this Order and this offer shall be deemed accepted by Seller without said additional or different terms. Once accepted, this Order shall constitute the entire agreement between WSECO is not bound by any representation or agreements, express, or implied, oral or otherwise, which are not stated within this agreement or contained in a separate writing supplementing this agreement and signed by authorized agents of both WSECO and Customer. 2.TIME OF DELIVERY and SHIPPING:Orders for equipment are processed in the order of their acceptance by WSECO and WSECO will use its reasonable efforts to deliver the equipment to You on the scheduled delivery date on the face hereof.However,shipping and delivery dates are acknowledged to be estimates only and dependent upon many factors outside of WSECO's control including, but not limited to, the manufacturer's production schedule, material and labor shortages, shipping delays and various other unrelating factors.WSECO is not liable for delays or damages caused by delays in delivery or shipment of the equipment,unless stated on the face of this order to the contrary.You are responsible for all freight,shipping,loading and unloading costs. 3.To secure Customer's obligations under this agreement and to secure all of Customer's present or future debts, obligations or liabilities of whatever nature to WSECO,Customer grants to WSECO a security interest in the goods described on the reverse side hereof,together with any attachments or accessions thereto and proceeds from the sale or lease thereof.Customer agrees to deliver to WSECO,properly executed,any certificate of title or other document or instrument required by WSECO to perfect WSECO's security interest as created in this paragraph. Customer also authorizes WSECO to file financing statement(s)with respect to the security interest granted herein. 4.Risk of loss of the goods shall pass to Customer as soon as the goods are properly loaded on the carrier. WSECO's responsibility for shipment ceases upon delivery of the goods to a transportation company.Customer shall carry such fire and other insurance as necessary to protect its interest and the interest of WSECO. Any claim by Customer for shortage in shipment shall be made within fifteen(15)days after receipt of the shipment. It is specifically agreed that the risk of loss shall not be altered by the fact that the conduct of either party hereto may constitute a default or breech.The shortage in shipment notice must be in writing within fifteen (10)days and further,shortage in shipment is not deemed to constitute a nonconformity 5.Any notices pertaining to rejection or claims of nonconformity must be made in writing specifying in detail Customer's objections and such notices must be delivered within ten (10) days after delivery of the goods. It is agreed that in the event of rejection, Customer may in no event resell the goods, even in the absence of instructions from WSECO, and Customer will store the goods or reship the goods to WSECO. Should Customer sell the goods, such sale shall be deemed an unequivocal acceptance of the goods. If Customer accepts goods tendered under this agreement, such acceptance shall be final and irrevocable; no attempted revocation shall have any effect whatsoever. 6.No right or interest in this agreement shall be assigned by Customer without the written permission of WSECO,and no delegation of any obligation owed or of the performance of any obligation by Customer shall be made without written permission of WSECO. Any attempted assignment or delegation by Customer shall be wholly void an totally ineffective for all purposes unless made in conformity wit this paragraph. 7.WSECO shall have all rights and remedies provided in the Uniform Commercial Code and in any other document executed in connection with this agreement. Customer agrees to pay all costs incurred by WSECO in enforcing this agreement or any of is provisions,including without limitation reasonable attomey's fees and costs and all costs of reclaiming the goods,whether or not legal action is commenced.In the event the goods are reclaimed,Customer agrees that WSECO may bid on the goods and that a commercially reasonable price for said reclaimed goods,a public sale,may be determined by WSECO based upon current national auction values,market trends relating to supply and demand,and related factor,for goods of similar type and condition. 8.CANCELLATION/TERMINATION:This Order may be canceled by Customer only with WSECO's written consent and then only upon such terms as will protect Seller from any loss.This Order may be cancelled by WSECO in the event of any default by Customer or in the event Customer fails, upon WSECO's request,to provide reasonable assurances of future performance. 9.PERMISSIBLE VARIATIONS:All goods shall be subject to the standard manufacturing and commercial variation and practices of the Manufacturer of the goods of WSECO, In the event of shipment of non-conforming goods,WSECO shall be given a reasonable opportunity tot replace the goods with those which conform to the order. 10.FORCE MAJEURE:a)WSECO shall not be responsible or liable for any delay or failure to delivery any or all of the goods and/or performance of the services of such delay or failure is caused by any act of God,fire,flood,inclement weather,explosion,war,insurrection, riot,embargo,stature,ordinance,regulation or order of any government or agent thereof, shortage of labor, material fuel, supplies or transportation, strike or other labor dispute, or any other cause, contingency, occurrence or circumstance of any nature,whether or not similar to those herein before specified beyond WSECO's control,which prevents,hinders or interferes with manufacture,assembly or delivery of the goods or performance of the services.Any such cause, contingency, occurrence or circumstances shall release WSECO from performance of its obligations hereunder. 11.VENUE:Venue for any disputes between the parties will be in Ada County, Idaho and in state court for legal proceedings Purchasers waives right to remove any legal action from the court originally acquiring jurisdiction. 12. This machine may be equipped with a wireless data communication system, such as Product Link. In such case, I understand data reflecting the machine performance,condition and operation is being transmitted to Caterpillar/Western States Equipment Co.to better serve me and to improve upon Caterpillar products and services.This data may include,but is not limited to:fault codes,emissions data,fuel usage,service meter hours,software and hardware version numbers and installed attachments. Neither Caterpillar nor Westem States Equipment Co.will sell, rent or share collected information to any other third party, and will exercise reasonable efforts to keep the information secure. Caterpillar Inc. and Western States Equipment Co. recognize and will respect customer privacy. I agree to allow this data to be accessed by Caterpillar and Western States Equipment Co.within normal,accepted business practices. WS2.702.1 cINITIAL HERE? (3-71?". _ V ,. A' 5.,.;' A419 STANDARD WARRANTY AND APPLICATION FOR EXTENDED COVERAGE FOR CATERPILLAR PRODUCTS The Caterpillar equipment owner identified below("Owner")hereby applies to Western States Equipment for Standard or Extended Coverage in accordance with the terms as set forth in this document,for the Caterpillar product identified below.Owner desires the Standard or Extended coverage option(s)listed below: COVERAGE EXPIRATION-FIRST TO OCCUR(MONTHS OR HOURS)-Months after retail purchase(less duration of rental,demonstration, or other usage,if any,prior to the first purchaser or lessee) Standard Warranty period based on Caterpillar guidelines 5 year 5,000 hour Governmental Failsafe Warranty OWNER's NAME CITY OF MC CALL OWNER PHONE 208 634 7142 OWNER ADDRESS OWNER CITY OWNER STATE OWNER ZIP 216 E PARK ST McCall Idaho CODE 83638 EXTENDED WARRANTY COVERAGE MODEL PRODUCT HOUR METER SERIAL NUMBER DELIVERY DATE 950K UT DESCRIPTION 0R4A02015 10/15/13 WheelLoaders IMPORTANT NOTE TO OWNER:Complete terms of Standard or Extended Coverage are set forth on this document.Please read all pages carefully before signing.YOUR RIGHTS AND REMEDIES IN CONNECTION WITH STANDARD OR EXTENDED COVERAGE ARE LIMITED AS INDICATED ON ALL PAGES OF THIS DOCUMENT.CATERPILLAR PRODUCTS CARRY NO IMPLIED WARRANTY OR MERCHANTABILITY OR FITNESS.STANDARD WARRANTY OR EXTENDED COVERAGE IS NOT INSURANCE. ACKNOWLEDGEMENTS:I have read and understand the terms,including limitations and exclusions,of Standard or Extended Coverage,and understand that it is not insurance.I also understand that the coverage applied for herein is not effective unless and until I pay the applicable charge for this extended covera nue- and the SOS requirements (%vit al) AirCOWNEIVLESSEE SIGNATURE: DATE: The owner and product identified abo eet all re', irement for the covera_: ' ested and the applicable charge for extended coverage has been paid. �, �� DEALER SIGNATURE: /v/ DATE: `Z/�/',//3 TRANSFER:The unexpired po/on of the Standard or Extended Repair Cov •ge may be transferred with Western States Equipme ap . oval (see section F on back for comp ete details).Complete the section below to quest transfer. PURCHASER NAME DATE MACHINE SOLD DATES INSPECTION COMPLETED&APPROVED Purchase Application ADDRESS(STREET,RR) (CITY/TOWN) (STATE) (ZIP CODE) _COMMERCIAL • TRANSFER HOUR METER SIGNATURE OF NEW DEALER CONFIRMATION FORESTRY READING BUYER "WASTE _GOVERNMENTAL _ AG By signing this agreement I agree to the terms on the following pages. CATERPILLAR STANDARD WARRANTY General Provisions:Caterpillar warrants the products sold by it,and operating within the geographic area serviced by authorized USA and Canadian Caterpillar dealers,to be free from defects in material and workmanship.In other areas and for other products,different warranties may apply.Copies of applicable warranties may be obtained by writing Caterpillar Inc. 100 N.E.Adams St.,Peoria IL,USA 61629-3345. Warranty Period:The Standard Caterpillar Machine Warranty is 12 Months/UNLIMITED hours of operations(whichever occurs first),based upon Caterpillar's recommended guidelines.For new associated work tools,the warranty period is 12 Months/UNLIMITED hours,starting from the date of delivery or sale to first user.No extended coverage is available for Caterpillar work tools.For new replacement engines,the warranty is 6 months,starting from date of delivery to the first user.Note:For hydraulic line's quick connect/disconnect components sold on compact wheel loaders,mini hydraulic excavators,skid steer loaders,multi terrain loaders,and compact track loader machines,the warranty period is 50 hours starting from the date of delivery to the first user. Caterpillar Responsibilities:If a defect in materials or workmanship is found during the Standard Warranty period,Caterpillar will,during normal working hours and at a place of business of a Caterpillar dealer or other source approved by Caterpillar. 1)Provide(at Caterpillar's choice)new,remanufactured,or Caterpillar-approved repaired parts or assembled components needed to correct the defect.2)Replace lubricating oil,filters,antifreeze,and other service items made unusable by the defect.3)Provide reasonable or customary labor needed to correct the defect.Note:Items replaced under this warranty become the property of Caterpillar. Owner Responsibilities:The user is responsible for: 1)Providing proof of delivery date to the first user.2)The costs associated with transporting the product.3)Labor costs, except as stated under"Caterpillar Responsibilities".4)Local taxes,if applicable.5)Parts shipping charges in excess of those which are usual and customary(air freight).6) Costs to investigate complaints,unless the problem is caused by a defect in Caterpillar material or workmanship.7)Giving timely notice of a warrantable failure and promptly making the product available for repair.8)Costs associated with the performance of required maintenance(including proper fuel,oil,lubricants and coolant)and items replaced due to normal wear and tear.9)Allowing Caterpillar access to all electronically stored data. 10)Costs associated with travel time and mileage required for on-site repairs. EXTENDED REPAIR COVERAGE A. General Provisions:During the selected coverage period,Western States Equipment will repair or replace,at its option,covered components of the product identified on the face of this document under the Extended Coverage Section.Coverage is subject to the listed conditions of"Standard","Full Machine","Power Train",or"Power Train Plus Hydraulics"and for the appropriately indicated"Months"and"Hours"for components that are defective in material or workmanship, subject to the terms and conditions set forth on both sides of this document.Such repair or replacement will be free of charge for parts and labor,except as otherwise stated below or as stated within the Standard Caterpillar Warranty section above.Under the"Governmental Full Machine"option,the extended coverage includes Scheduled Oil Sampling materials and analysis provided by Western States Equipment at Caterpillar's prescribed intervals.An Extended Coverage Contract is not required for purchase or to obtain financing. Warranty Periods:Warranty periods for Extended Coverage are indicated in the extended warranty coverage box on the face of this document.The coverage is listed for hours and months,whichever expires first. Owners Responsibilities:The owner(lessee,for leased products)at their expense,must maintain the product in accordance with the product's Operators Manual,and,upon request,provide adequate records verifying maintenance.For the"Power Train","Power Train Plus Hydraulics",and"Full Machine"Extended Coverage,Scheduled Oil Sampling(SOS)must be taken by the owner at Caterpillar recommended intervals and sent to Western States Equipment.Failure to do so could jeopardize the Extended Coverage and result in shared liability on a pro rata basis if SOS could have predicted or reduced the cost of a covered failure.Note:Any malfunction of the service meter shall be reported within 30 days of said malfunction in writing,or this agreement is null and void. Power Train Extended Coverage:The following components are covered.If a component is not listed,it is not covered. 1)ENGINE:basic engine including engine components essential to engine operation(i.e.,fuel pump,oil pump,water pump,turbocharger,governor,engine control module,etc.).2)TRANSMISSION:includes transmission pump and hydraulic controls.3)TORQUE CONVERTER/DIVIDER.4)DRIVE LINE:includes pinion and bevel gear.5)TRANSFER GEAR GROUP.6) DRIVE AXLES.7)FINAL DRIVES.8)HYDRAULIC DRIVE PUMPS AND MOTORS:on hydraulic excavators and machines equipped with hydrostatic drive or differential steering,including hydrostatic lines between the pump and motor.9)BRAKE COMPONENTS for track-type loaders and tractors,only if they also provide steering.10) STEERING CLUTCH COMPONENTS:on track-type loaders and tractors,if so equipped.11)DIFFERENTIAL STEERING COMPONENTS:includes differential steer planetary group,pump,motor and pilot valves. 12)VIBRATORY COMPONENTS:on vibratory compactors.Includes vibratory mechanism,hydraulic pump and motor, hydraulic valves,universal joints,bearings,and drum isolation system. 13)ROTOR DRIVE MECHANISM:on paving profilers,reclaimers and stabilizers.This includes the drive shaft group,sheave groups,and clutch group.This excludes belts,chains and rotor brakes.14)ELECTRONIC CONTROLS AND SENSORS:which function to direct power for moving the machine.This includes power shift controls,engine pressure controls,differential lock,and fingertip controls.Also includes the wiring connectors that are part of the designated power train components. Power Train Plus Hydraulics Extended Coverage:The following components are covered.If a component is not listed,it is not covered.Power Train Plus Hydraulics coverage includes all of the above listed items under Power Train for the appropriately indicated hours and months,plus the following: 1)HYDRAULIC/STEERING HOSES AND LINES.2)HYDRAULIC QUICK-COUPLERS AND SWIVELS.3)HYDRAULIC TANKS:includes specific internal parts.4)HYDRAULIC OIL FILTER BASE, excluding hydraulic oil filters.5)HYDRAULIC PUMPS AND MOTORS:including steering pumps(main and supplemental).6)HYDRAULIC CYLINDERS:steering, suspension,and implement hydraulic cylinders(includes bulldozer and ripper cylinders on track-type tractors).7)HYDRAULIC VALVES AND CONTROLS:includes all parts that make up a valve for directing or controlling hydraulic fluid for steering and implements,including automatic blade controls and bucket position controls.8) HYDRAULIC ACCUMULATORS:steering and implement.9)HYDRAULIC'OIL COOLERS:steering and implement. Full Machine Extended Coverage:All of the listed items included in the POWER TRAIN and POWER TRAIN PLUS HYDRAULICS coverage,plus all attachments/accessories that were installed on the product before delivery which are not covered by another warranty,for the appropriately indicated hours and months of coverage on the face of this document(whichever expires first).Governmental application"Full Machine Failsafe Coverage"will also include all fluid filters and pre-paid SOS as prescribed by Caterpillar's recommendations and a 95%machine availability as recorded by owner.Machine availability for Governmental application Full Machine Failsafe coverage will be determined by: Scheduled Hours Available for Work(numerator) Scheduled Hours(denominator) The machine availability will be evaluated at 12-month intervals.If machine availability is below 95%,Western States Equipment will reimburse owner$25.00 per hour for the hours necessary to"enhance"availability to the 95%level. Note:"Power Train","Power Train Plus Hydraulics",and"Full Machine"coverage continue(unless transferred or terminated as per Section C or G below)until the expiration of the hours or months listed on the face of this document.The coverage period ends after reaching the specified number of months selected,or when the machine's hour meter reaches the specified number of hours limitation selected,whichever occurs first.Extended Coverage is available only through Western States Equipment for Caterpillar Equipment. Note:Once Extended Coverage becomes effective,Western States Equipment's obligations there under extend only to the applicant identified on the face of this document, unless the remaining coverage is transferred to a subsequent end use purchaser of the product in accordance with Section F below,and indicated on the face of this document,or cancelled under Section G below. Note:The travel time and mileage/hauling option is available only to Governmental application"Full Machine Failsafe coverage"option. B. ITEMS NOT COVERED:Western States Equipment is not responsible for the following:1)Premiums charged for overtime labor requested by the owner/lessee. 2)Transporting the product to and from the place where service is performed,or service calls made by the repairing dealer if the travel time and mileage/hauling Form#SVC15-0 8/05/2011 option is not included.3)Depreciation or damage caused by normal wear,lack of reasonable and proper maintenance,failure to follow operating instructions, misuse,lack of proper protection during storage,vandalism,the elements,collision or other accidents,or acts of God.4)Normal maintenance and replacement of maintenance and wear items,such as filters,oil,fuel,hydraulic fluid,lubricants,coolants and conditioners,labor for taking oil sample,tires,Freon,batteries,lights, paint,fuses,glass,seat upholstery,undercarriage,lubricated joints(including pins and bushings),blades and cutting edge parts,belts,dry brakes,dry clutch linings, and bulbs.5)Any defect in a non-covered component,or damage to or failure of a covered component caused by a defect in a non-covered component.6) Travel time and mileage for Extended Repair Coverage repairs in the field,if travel time and mileage/hauling option is not included.7)Auxiliary Equipment Manufacturers' attachments and new associated work tools and attachments carry only one warranty as prescribed by that manufacturer.8)Western States Equipment will not be responsible for repairs,cost of repairs,or be assessed hours against the availability guarantee for damage or downtime caused by fire,vandalism,accident,operator's abuse,negligence,strikes,acts of God,failure to perform the manufacturer's recommended maintenance as set forth by the lube and maintenance guide,tire failure or Auxiliary Equipment or Attachments.9)Owner/Lessee will not assess the time required to perform the manufacturer's recommended maintenance as set forth by the lube and maintenance guide against the availability guarantee. 10)All costs(including travel time and mileage/hauling)for repairs required because of abuse or improper operation will be charged to the owner/lessee.Minor repairs that do not affect the immediate and safe operation of the machine will be completed within the earliest possible period within Western States Equipment maintenance schedule. C. TERMINATION OF EXTENDED COVERAGE:Western States Equipment is relieved of its obligation under Extended Coverage if: 1)The product is altered or modified in any manner not approved by Western States Equipment in writing.2)The product's hour meter has been rendered inoperative or otherwise tampered with,or any malfunction of the service meter is not reported within 30 days of said malfunction in writing to Western States Equipment.3)The product is removed from Western States'territory.4)Use is made of the product within an application group other than the one designated in the original application for Extended Coverage for the product. D. LIMITATIONS OF WESTERN STATES EQUIPMENT LIABILITY:In no event will Western States Equipment be liable for any incidental or consequential damages(including,without limitation,loss of profits,rental of substitute equipment,or other commercial loss)that may be caused due to a defect in the product of the breach of performance of Western States Equipment obligations under Extended Coverage. E. OBTAINING EXTENDED COVERAGE SERVICE:To obtain service the owner/lessee must request Extended Coverage Service from the nearest Western States Equipment branch.When making a request,the owner/lessee must promptly make the product available for repair and inform the dealer of what they believe is the problem/defect.Extended Coverage service can be performed in the field if the owner/lessee and servicing branch agree to do so.However,Western States Equipment will not be held responsible for any additional cost incurred because of the decision to repair a machine in the field.Dealer Branches toll free number: Idaho Falls,ID 877-552-2287 Pendleton,OR 888-388-2287 Lewiston,ID 800-842-2225 Pasco,WA 800-633-2287 Meridian,ID 800-852-2287 Spokane,WA 800-541-1234 Pocatello,ID 800-832-2287 Hayden,ID 208-762-6600(Not a toll free number) Twin Falls,ID 800-258-1009 Kalispell,MT 800-635-7794 Missoula,MT 800-548-1512 LaGrande,OR 800-963-3101 F. TRANSFER OF UNUSED COVERAGE UPON RESALE:Remaining Extended Coverage applicable to a used Caterpillar product is transferred to a subsequent end use purchaser only if: 1)The subsequent purchase is made before the product's Extended Coverage expires.2)The product is determined by Western States Equipment to be in satisfactory condition following an inspection performed by an authorized Western States Equipment branch at the subsequent end use purchaser's expense.3)The subsequent end use purchaser receives Western States Equipment's written confirmation of the transfer.4)The use of the product by the subsequent end use purchaser remains in the initial/same application group designed on the product's original coverage application,or the subsequent end use purchaser pays the amount specified by Western States Equipment for conversion of the remaining coverage to a different application group. G. CANCELLATION OF COVERAGE:The owner may cancel Extended Coverage: 1)Within thirty(30)days of machine purchase by original end use purchaser if no claim has been made,and receive a full refund of the coverage purchase price,less a$50.00 cancellation fee.2)At any other time during the coverage by the first end use purchaser and receive a pro rata refund of the coverage purchase price for the unexpired term of the coverage,based on the number of lapsed months,less a $50.00 cancellation fee.3)Prior to cancellation owner/lessee must provide written notice of the intent to cancel coverage to the nearest Western States Equipment branch. H. COVERAGE AFFORDED UNDER THIS CONTRACT IS NOT GUARANTEED BY THE IDAHO INSURANCE GUARANTY ASSOCIATION. OBLIGATIONS OF THE MACHINE SERVICE CONTRACT PROVIDER UNDER THIS MACHINE SERVICE CONTRACT ARE GUARANTEED UNDER A SERVICE CONTRACT LIABILITY POLICY.SHOULD THE MACHINE SERVICE CONTRACT PROVIDER FAIL TO PAY OR PROVIDE SERVICE ON ANY CLAIM WITHIN SIXTY(60)DAYS AFTER PROOF OF LOSS HAS BEEN FILED,THE MACHINE SERVICE CONTRACT HOLDER IS ENTITLED TO MAKE A CLAIM DIRECTLY AGAINST THE INSURANCE COMPANY. I. UPON FAILURE OF THE OBLIGOR TO PERFORM UNDER THE CONTRACT,CATERPILLAR INSURANCE COMPANY SHALL PAY ON BEHALF OF THE OBLIGOR ANY SUMS THE OBLIGOR IS LEGALLY OBLIGATED TO PAY OR SHALL PROVIDE THE SERVICE THAT THE OBLIGOR IS LEGALLY OBLIGATED TO PERFORM ACCORDING TO THE OBLIGOR'S CONTRACTUAL OBLIGATION UNDER THE SERVICE CONTRACTS ISSUED BY THE OBLIGOR,AND CATERPILLAR INSURANCE COMPANY WILL PAY CLAIMS AGAINST THE OBLIGOR FOR THE RETURN OF THE UNEARNED PURCHASE PRICE OF THE SERVICE CONTRACT. J. THIS DOCUMENT IS NOT AN IMPLIED WARRANTY.THIS COVERAGE IS EXPRESSLY IN LIEU OF ANY OTHER WARRANTIES,EXPRESS OR IMPLIED,INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.REMEDIES UNDER THIS COVERAGE ARE LIMITED TO THE PROVISION OF MATERIAL AND LABOR,AS SPECIFIED HEREIN.WESTERN STATES EQUIPMENT IS NOT RESPONSIBLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES.. K. REGISTER OBLIGOR:WESTERN STATES EQUIPMENT COMPANY IS REGISTERED OBLIGOR,WHO IS CONTRACTUALLY OBLIGATED TO THE SERVICE CONTRACT HOLDER/OWNERS NAME TO PROVIDE SERVICE UNDER THIS SERVICE AGREEMENT.WESTERN STATES EQUIPMENT COMPANY CAN BE CONTACTED AT THE FOLLOWING ADDRESS OR PHONE NUMBER:WESTERN STATES EQUIPMENT COMPANY 500 E OVERLAND ROAD,MERIDIAN,ID 83642(208)888-2287.SERVICE CONTRACT INSURER:CATERPILLAR INSURANCE COMPANY 2120 WEST END AVE.,NASHVILLE,TENNESSEE 372031800 248-4228 Form#SVC15-0 8/05/2011 CATERPILLAR° Caterpillar Inc. 1-1 Check when information has been DO NOT SEND IF entered into the Product ENTERED INTO P.I.S. Peoria,Illinois 61629 Information System through Caterpillar dealer terminal. . Delivery Service Record Comprobante Del Servicio De Entrega DLR.CODE MODEL MACHINE SERIAL NO. HOURS DELIVERY DATE ENGINE SERIAL NO. COD.DISTRIB. MODELO N/S MAQUINA HORAS FECHA DE ENTREGA N/S MOTOR H510 950. UT R4A02015 10/15/13 ATTACHMENTS INSTALLED' BUCKET,DOZER,RIPPER,WINCH,CAB, ACCESORIOS INSTALADOS: CUCHARON,HOJA,DESGARRADOR,MALACATE, TRANSMISSION,BOOM,STICK,ETC. CABINA,TRANSMISION,PLUMA,BRAZO,ETC. Mfr.&Model or Part No. Mfr.&Model or Part No. Mfr.&Model or Part No. Mfr.&Model or Part No. Fabricante y Modelo o N/P Fabricante y Modelo o N/P Fabricante y Modelo o N/P Fabricante y Modelo o N/P • Serial No. Serial No. Serial No. Serial No. N/S N/S N/S N/S Customer Name(Please Print) City Of McCall Nombre del Cliente(con letra de imprenta) Full Mailing Address 216 E Park Street DirecciOn Complete McCall Idaho Country Valley Pajs Delivery service on this machine has been completed, including the following items. Check(/)when each item is completed. El servicio de entrega de esta maquina se ha completado incluso los puntos siguientes.Marque(I)cada punto que complete. • n 1.Operation Guide delivered with machine and operating controls and warning labels explained to user. 3.Parts Book delivered with machine. I� Se entreg6 con la maquina la Guia de Operaci6n y se explic6 al usuario la operac6n de los controles y los r6tulos de advertencia. Se entreg6 con la maquina el Catalogo de Piezas. I 1 I I 2.Maintenance Guide delivered with machine and maintenance service,fluid levels and adjustments explained to user. ri 4.All items on Delivery Checklist have been completed. 1 I Se entreg6 con la maquina la Guia de Conservaci6n y se explic6 al usuario el servicio de conservaci6n,ajustes y nivel de fluidos Se hizo todo to indicado en el Comprobante de Entrega / (No.de F rrna 01-08 531 4.03). Dir.Rep.Signature / l] ,iii/7„:.„/ ser_s. Ignatu�� t+ Firma del representante/ Firma del usuario del distribuidor / Delivery Checklist CONTINUED ON REVERSE SI E At dealership - At delivery area with customer (owner, operator): ❑ Make sure all pending Safety Product Improvement 0 Explain Parts Book. Programs(PIP)have been completed. 0 Explain all warning labels on machine. ❑ Make sure all necessary forms and literature 0 Show location of all serial numbers on machine. are available. ❑All decals are installed. Lubrication and Maintenance. ❑All attachments are installed/available. 0 Explain Maintenance Guide. ❑ Install shipping/service lock pins in fire suppression 0 Instruct how to use lubrication and system(if equipped)when transporting machine. maintenance chart. 0 Show all lubrication points on the machine and attachments. Lista de Comprobacion SIGUE AL DORSO En la distribuidora En el lugar de entrega, con el cliente (propietario, operador). ❑Asegurese que se completaron los programas pendientes de ❑ Explicar el Catdlogo de Piezas. mejoras al producto para fines de seguridad(PIP). ❑ Explicar todos los rOtulos de advertencia de la maquina. ❑AsegUrese que hay disponibles todas las formas y folletos 0 Mostrar ubicaci6n de todos los numeros de serie en la mSquina. necesarios. ❑ Se han puesto todas las etiquetas. LubricaciOn y Conservacion ❑Todos los accesorios estdn instalados/disponibles. 0 Explicar la Gula de Conservaci6n. ❑ Se han instalado los pasadores de traba para embarque/servicio 0 Indicar c6mo se utilize el cuadro de lubricaci6n y en el sistema supresor de incendios(si tiene)al transporter la conservaci6n. mSquina. 0 Mostrar todos los puntos de lubricaci6n de la mdquina y accesorios. CLEARJFIELDS. 01-085314-09(3515) - - FLUID LEVELS—Instruct how to measure all fluid TT - Track type Machine COMPLETE THE DELIVERY FORM WITH THE CUSTOMER. s, WALK AROUND INSPECTION levels and fill compartments. WT- Wheel type Machine SUBMIT THE COMPLETED FORM TO THE APPROPRIATE PERSON. nHose and wire interferences ALL MACHINES IMPORTANT ITEMS TO INSTRUCT AND/OR DEMONSTRATE (rubbing,twisting,sharp bends) iI Loose wiring harnesses - Final Drives n Coolant(Inspect with engine n Coolant conditioner- explain purpose — (especially in the engine area) Fuel stopped and cool) how much to add Loose or missing bolts&fasteners — Belt tension -fan Hydraulic Tank Differential(s)(WT) when to add — -alternator _ Engine Oil Crankcase Windshield washer reservoir Air filter indicator Batteries (if equipped) — Track tension adjustment(Ti) -compressor (if equipped) Transmission/Powertrain n Attachment fluid level(if equipped) — Fire suppression system-Remove shipping/service pins(if equipped) Inflate tires to proper pressure(WT) LEAKS TTT,PIPELAYER MOTOR GRADERS DEMONSTRATE — Hydraulic nRecoil spring oil compartments — Tandem drive housings — Engine oil (elevated sprocket only) _ Circle drive housing _ Starting and Stopping operations _ Transmission/Powertrain nTrack roller frame pivot bearing Frt.wheel spindle bear housing. — Transmission operation Coolant (elevated sprocket only) Steering Fuel _ Cable drum trans.(pipelayer) Throttle Differential(s)(WT) Reverse gear housing(pipelayer) TRACTOR SCRAPERS Brake — Brakes Towing winch(pipelayer) — Wheel coolant — Brake-service — Final drives Scraper wheel bearings — Brake-parking(if equipped) — Valves Elevator speed reducer — Hydraulic controls and implement operation — Hoses TRACK TYPE LOADERS (elevating scrapers only) — Transmission lever lock — Cylinders Di Elevator idler rollers fferenti lkM d al oc ( otor graers,tractor scrapers) Fittings Pump drive(963,973 only) (elevating scrapers only) Tra nsmission— neutralizer(wheel loaders) Undercarriage(TT) Track roller frame pivot shaft n Steering gear sector housing — Cushion hitch control(tractor scrapers)(if equipped) Transmission hold(tractor scrapers) WATER AND SEDIMENT DRAINS FOR OFF-HIGHWAY TRUCKS/TRACTORS — Transmission modulator(motor graders) EXCAVATORS,LOGGER Hydraulic unloading valve(motor graders) — _ Front wheel bearings — Fuel Tank — Decelerator(motor graders) Pump drive — Brake fluid reservoirs — Fuel/water separator(If equipped) Bucket positioner adjustment(Track type Loaders&Wheel Loaders)_ Swing gear After-cooler syst.(777,776 only) Cab Air reservoirs(if equipped) Clamshell rotator gear drive - lights (if equipped) WHEEL LOADERS,COMPACTORS, —windshield washer/wiper SHOW LOCATION OF ALL FILTERS SKIDDERS — heater(if equipped) — Hydraulic Brake fluid reservoirs — air conditioner(if equipped) — Engine Oil Winch(skidders) — seat _ Fuel OPERATION seat belt Transmission/Powertrain nReview Operation Guide n Attachments — gauges Engine Air — EMS indicator lights(if equipped) Cab air system(if equipped) NIVEL DE FLUIDOS-Mostrar camo se miden todos M/R=de ruedas LLENE EL FORMULARIO DE ENTREGA CON EL CLIENTE. INSPECCION ALREDEDOR DE LA MAQUINA los niveles de fluido y Ilenar los compartimientos. M/C=de cadenas PRESENTE EL FORMULARIO COMPLETO A LA PERSONA INDICADA. R/M=rueda motriz n Interferencia entre mangueras y cables TODAS LAS MAQUINAS PUNTOS IMPORTANTES QUE SE DEBEN MOSTRAR 0 (rote,torcimiento,dobleces) DEMOSTRAR n Mazo de cables flojo Mandos Finales n Refrigerante(comprobar con el motor (espec.alrededor del motor) Acondicionador de refrigerants-explicar su fina6dad Combustible paradoy frio) I Tornilleria floja o que falta cuanto agregar Tanque Hidraulico Diferenciales(M/R) Tension de las corneas-ventilador — Aceite del Carter DepOsito del lavaparahrisas cuando agregar -altemador Indicador de filtro de aim _ Baterias (si tiene) -compresor TransmisTfren de Fuerza n Nivel del fluido de accesorios Adjustador de las cadenas iOn (si tiene) (si tiene) — Sistema supresor de incendios- TRACTORES DE CADENAS, sacar pasadores de embarque/servicio(si tiene) PERDIDAS TIENDETUBOS MOTONIVELADORAS Inflar neumaticos a la presiOn apropiada(M/R) — ElDep.aceite resorts amortiguador DEMUESTRE — Hidraulicas (R/M elevada solamente) — Caja de mandos tandem Aceite del motor Opemdones de arranque y parade Cojinetepivote bast,rodillos Caja de mando del circulo Trensmisi6n/Tren de fuerza Funclonamiento de la transmisiOn — _ Caja col.puntu eJe ruedas del. — Refrigerante R/M elevada solamente ( ) Direction — _ Trans.tambor de cable(riendelubos) _ Acelerador Combustible _ Caja engran.mamba alms(tiendembos) MOTOTRAILLAS— — Freno — Diferenciales(M/R) Malacate de remolque Refrigerante de las ruedas Frenos de servicio — — Frenos (liendembos) Coj.de ruedas(trailla) _ Frenos de estacionamiento(si tiene) Mandos finales Redactor de velocidad del elevadorV8lvulas Operation de los controles hidraulicos a implementos — solo traillas autoelevadoras) Mangueras GARGADORES DE CADENAS ( Traba de la palanca de transmisfon ula del elevadorC1lindros n Rod.rueda 9 — Traba del diferencial(motoniveladoras,mototraillas) - Mando de bombs(963.973 solamente (solo traillas autoelevadoras — Conexiones ) ) _ Neutralizador de la transmisiOn(cargadores de ruedas) Eje pivote bastldorrodillos interferes I I�1 Caja del sector dentado de la direccirn Tren de rodaje(M/C) j Control del enganche amortiguador(mototraillas)(si tienen) CAMIONES DE OBRA/CAMIONES — Traba de la transmisiOn(mototraillas) DRENAJE DE AGUA Y SEDIMENTO: EXCAVADORAS,TALADOR TRACTORES — Modulador de la transmisiOn(motoniveladoras) — Valvula de descarga hidraulica(motoniveladoras) — Tranque de combustible r— - Cojinetes de ruedas delanteras Descelerador(motoniveladoras) Separador de ague/combustible(si bone) Mando de bombe - - Depositos de fluido de frenos AJuste del situador del cucharOn(Cargadores) DepOsitos de afire(si tlene) Engranajes de rotacion — — Sistema posenfriador(solo 776,777) Cabina _ Mando del engrana e de rotacion MOSTRAR LA UBICACION DE de la almeja/bivalva CARGADORES DE RUEDAS, — lutes TODOS LOS FILTROS (si tiene) COMPACTADORES, — limpiaparahrisas — ARRASTRADORES DE TRONCOS — calorifero(si tiene) — Hidraulico n Dep6sitos de fluido de los frenos — airs acondicionado(si tiene)— Aceite del motor asiento Combustible Malacate(arrastradores de troncos) OPERACION —cinturon de seguridad _ Transmision/Tren de Fuerza —Indicadores _ Abe del motor ❑ Repose la Guia de Operation ❑ ACCESORIOS tiene)si — lutes Sistema de Verification ElectrOnica(si tiene) Sistema de afire de la cahina( • E TES STERN CRI SALES AGREEMENT DATE Oct 10, 2013 ST WESTERN STATES EQUIPMENT COMPANY,500 E.OVERLAND ROAD,MERIDIAN,ID 83642 PURCHASER CITY OF MC CALL STREET ADDRESS 216 E PARK ST <SAME> S O CITY/STATE MC, ID COUNTY VALLEY (92S) H L D POSTAL CODE 83638 PHONE NO. 208 634 7142 p EQUIPMENT Peter Borner OT CUSTOMER CONTACT: 0 PRODUCT SUPPORT Peter Borner F.O.B.AT: City of McCall INDUSTRY CODE: CITY/LOCAL GOVERNMENT(PS93) PRINCIPAL WORK CODE GOVERMENTAL(A30) CUSTOMER 5684800 Sales Tax Exemption St(if applicable) CUSTOMER PO NUMBER NUMBER N/A PAYMENT TERMS: (All terms and payments are subject to Finance Company-OAC approval) E NET PAYMENT ON RECEIPT OF INVOICE Q NET ON DELIVERY FINANCIAL SERVICES ❑CSC LEASE SM CASH WITH ORDER $0.00 BALANCE TO FINANCE $0.00 CONTRACT INTEREST RATE 0% PAYMENT PERIOD PAYMENT AMOUNT $0.00 NUMBER OF PAYMENTS 0 OPTIONAL BUY-OUT DESCRIPTION OF EQUIPMENT ORDERED/PURCHASED MAKE:CATERPILLAR MODEL: 950K UT YEAR: 2013 STOCK NUMBER: G027448 SERIAL NUMBER: 0R4A02015 950K WHEEL LOADER QUICK COUPLER, FUSION, 3V HYDRAULICS, 3V, RIDE CONTROL BUCKET-GP, 4.25 CYD STEERING, HMU TIRES, 23.5R25 * VJT BS L3 CUTTING EDGE, BOLT-ON COMFORT PACKAGE POWER & TRACTION PACKAGE JOYSTICK, 3 VALVE (SW) SEAT BELT, 3" WIDE COOLING, HIGH AMBIENT GUARD, POWERTRAIN REGIONAL PKG, NACD AXLES, LSD/LSD, ED COLD START PACKAGE (120V) DOMESTIC TRUCK LANE 2 ORDER YEAR TRADE-IN EQUIPMENT SERIAL NO. Sell Price $257,014.00 1980 930 - CATERPILLAR(AA) 41K10292 Less Gross Trade Allowance ($75,000.00) 1976 966 - CATERPILLAR(AA) 76J14380 After Tax Balance $182,014.00 ALL TRADES-INS ARE SUBJECT TO EQUIPMENT BEING IN"AS INSPECTED CONDITION"BY VENDOR AT TIME OF DELIVERY OF REPLACEMENT MACHINE PURCHASE ABOVE. GROSS TRADE ALLOWANCE PAYOUT TO AMOUNT OWING CUSTOMER TO PAYOUT WESTERN STATES CO.TO PAY OUT PURCHASER HEREBY SELLS THE TRADE-IN EQUIPMENT DESCRIBED ABOVE TO THE VENDOR AND WARRANTS IT TO BE FRFF AND CI FAR OF Al I Cl AIMS I IFNS MORTGAGES AND SFCIIRITY INTEREST EXCEPT AS SHOWN ABOVE Q CATERPILLAR EQUIPMENT WARRANTY ❑USED EQUIPMENT INITIAL WARRANTY The customer acknowledges that he has received a copy of the Western States Co./Caterpillar Warranty and has read and understood said All used equipment is sold as is where is and no warranty is offered or implied except as warranty.Scheduled oil sampling(S.O.S.)is mandatory with this warranty.The customer is responsible for taking oil samples at designated specified here: intervals from all power train components and failure to do so may result in voiding the warranty. Warranty applicable including experation date where necessary: Warranty applicable: 12 months Unlimited hours full machine 5 year 5,000 hr Failsafe Warranty ❑ALLIED WARRANTY SIGNATURE CSA: NOTES: THIS AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS ON THE REVERSE PURCHASER WESTERN STATES EQUIPMENT COMPANY APPROVED AND ACCEPTED ON ORDER RECEIVED BY Chad Allen REPRESENTATIVE CITY OF MC CALL ����'']]]] PURCHASER BV SIGNATU ., ►�►aild �. i iAADA1ar' IIILc TERMS AND CONDITIONS 1. METHODS OF ACCEPTANCE and TERMS OF AGREEMENT: This Machine Sales Order("MSO") is an offer for the sale of the equipment and attachments described on the face hereof(referred to herein generally as"equipment"and"goods"interchangeably)to Customer under the terms and conditions specified herein. This offer may be accepted by(1)the execution of this MSO by a representative of Customer or(2)Customer's verbal or written authorizations or conduct consistent with prior course of dealing between the parts authorizing WSECO to take action to fulfill this order, or(3)the commencement of manufacture or shipment of the goods or services specified in this Order, whichever of the foregoing first occurs. Acceptance of this offer is limited to the express terms stated in this Order.Any proposal in Buyer's acceptance for additional or different terms or any attempt by Customer to vary in any degree any of the terms or any attempt by Customer to vary in any degree any of the terms of this offer is objected to and hereby rejected, but such proposals shall not operate as a rejection of this offer, unless such variances are in the terms of the description,quantity,price or delivery schedule of the goods or services,but shall be deemed a material alteration of this Order and this offer shall be deemed accepted by Seller without said additional or different terms. Once accepted, this Order shall constitute the entire agreement between WSECO is not bound by any representation or agreements, express, or implied, oral or otherwise, which are not stated within this agreement or contained in a separate writing supplementing this agreement and signed by authorized agents of both WSECO and Customer. 2.TIME OF DELIVERY and SHIPPING:Orders for equipment are processed in the order of their acceptance by WSECO and WSECO will use its reasonable efforts to deliver the equipment to You on the scheduled delivery date on the face hereof.However,shipping and delivery dates are acknowledged to be estimates only and dependent upon many factors outside of WSECO's control including, but not limited to, the manufacturer's production schedule, material and labor shortages, shipping delays and various other unrelating factors.WSECO is not liable for delays or damages caused by delays in delivery or shipment of the equipment, unless stated on the face of this order to the contrary.You are responsible for all freight,shipping,loading and unloading costs. 3.To secure Customer's obligations under this agreement and to secure all of Customer's present or future debts, obligations or liabilities of whatever nature to WSECO,Customer grants to WSECO a security interest in the goods described on the reverse side hereof,together with any attachments or accessions thereto and proceeds from the sale or lease thereof.Customer agrees to deliver to WSECO,properly executed,any certificate of title or other document or instrument required by WSECO to perfect WSECO's security interest as created in this paragraph. Customer also authorizes WSECO to file financing statement(s)with respect to the security interest granted herein. 4.Risk of loss of the goods shall pass to Customer as soon as the goods are properly loaded on the carrier. WSECO's responsibility for shipment ceases upon delivery of the goods to a transportation company.Customer shall carry such fire and other insurance as necessary to protect its interest and the interest of WSECO. Any claim by Customer for shortage in shipment shall be made within fifteen(15)days after receipt of the shipment. It is specifically agreed that the risk of loss shall not be altered by the fact that the conduct of either party hereto may constitute a default or breech.The shortage in shipment notice must be in writing within fifteen (10)days and further,shortage in shipment is not deemed to constitute a nonconformity 5.Any notices pertaining to rejection or claims of nonconformity must be made in writing specifying in detail Customer's objections and such notices must be delivered within ten (10) days after delivery of the goods. It is agreed that in the event of rejection, Customer may in no event resell the goods, even in the absence of instructions from WSECO, and Customer will store the goods or reship the goods to WSECO. Should Customer sell the goods, such sale shall be deemed an unequivocal acceptance of the goods. If Customer accepts goods tendered under this agreement, such acceptance shall be final and irrevocable; no attempted revocation shall have any effect whatsoever. 6.No right or interest in this agreement shall be assigned by Customer without the written permission of WSECO,and no delegation of any obligation owed or of the performance of any obligation by Customer shall be made without written permission of WSECO. Any attempted assignment or delegation by Customer shall be wholly void an totally ineffective for all purposes unless made in conformity wit this paragraph. 7.WSECO shall have all rights and remedies provided in the Uniform Commercial Code and in any other document executed in connection with this agreement. Customer agrees to pay all costs incurred by WSECO in enforcing this agreement or any of is provisions,including without limitation reasonable attomey's fees and costs and all costs of reclaiming the goods,whether or not legal action is commenced. In the event the goods are reclaimed,Customer agrees that WSECO may bid on the goods and that a commercially reasonable price for said reclaimed goods,a public sale,may be determined by WSECO based upon current national auction values,market trends relating to supply and demand,and related factor,for goods of similar type and condition. 8.CANCELLATION/TERMINATION: This Order may be canceled by Customer only with WSECO's written consent and then only upon such terms as will protect Seller from any loss.This Order may be cancelled by WSECO in the event of any default by Customer or in the event Customer fails, upon WSECO's request,to provide reasonable assurances of future performance. 9.PERMISSIBLE VARIATIONS:All goods shall be subject to the standard manufacturing and commercial variation and practices of the Manufacturer of the goods of WSECO, In the event of shipment of non-conforming goods,WSECO shall be given a reasonable opportunity tot replace the goods with those which conform to the order. 10.FORCE MAJEURE:a)WSECO shall not be responsible or liable for any delay or failure to delivery any or all of the goods and/or performance of the services of such delay or failure is caused by any act of God,fire,flood, inclement weather,explosion,war,insurrection,riot,embargo,stature,ordinance,regulation or order of any government or agent thereof, shortage of labor, material fuel, supplies or transportation, strike or other labor dispute, or any other cause, contingency, occurrence or circumstance of any nature,whether or not similar to those herein before specified beyond WSECO's control,which prevents,hinders or interferes with manufacture, assembly or delivery of the goods or performance of the services. Any such cause, contingency, occurrence or circumstances shall release WSECO from performance of its obligations hereunder. 11.VENUE:Venue for any disputes between the parties will be in Ada County, Idaho and in state court for legal proceedings Purchasers waives right to remove any legal action from the court originally acquiring jurisdiction. 12. This machine may be equipped with a wireless data communication system, such as Product Link. In such case, I understand data reflecting the machine performance,condition and operation is being transmitted to Caterpillar/Western States Equipment Co.to better serve me and to improve upon Caterpillar products and services.This data may include, but is not limited to:fault codes,emissions data,fuel usage,service meter hours,software and hardware version numbers and installed attachments. Neither Caterpillar nor Western States Equipment Co. will sell, rent or share collected information to any other third party, and will exercise reasonable efforts to keep the information secure. Caterpillar Inc. and Western States Equipment Co. recognize and will respect customer privacy. I agree to allow this data to be accessed by Caterpillar and Western States Equipment Co.within normal,accepted business practices. WS2.702.1 1)5 INITIAL HERE � a ,. `� X�y c z .SA.ti� � STANDARD WARRANTY AND APPLICATION FOR EXTENDED COVERAGE FOR CATERPILLAR PRODUCTS The Caterpillar equipment owner identified below("Owner")hereby applies to Western States Equipment for Standard or Extended Coverage in accordance with the terms as set forth in this document,for the Caterpillar product identified below.Owner desires the Standard or Extended coverage option(s)listed below: COVERAGE EXPIRATION-FIRST TO OCCUR(MONTHS OR HOURS)-Months after retail purchase(less duration of rental,demonstration, or other usage,if any,prior to the first purchaser or lessee) Standard Warranty period based on Caterpillar guidelines 5 year 5,000 hour Governmental Failsafe Warranty OWNER's NAME CITY OF MC CALL OWNER PHONE 208 634 7142 OWNER ADDRESS OWNER CITY OWNER STATE OWNER ZIP 216 E PARK ST McCall Idaho CODE 83638 EXTENDED WARRANTY COVERAGE MODEL PRODUCT HOUR METER SERIAL NUMBER DELIVERY DATE 950K UT DESCRIPTION OR4A02015 10/15/13 WheelLoaders IMPORTANT NOTE TO OWNER: Complete terms of Standard or Extended Coverage are set forth on this document.Please read all pages carefully before signing.YOUR RIGHTS AND REMEDIES IN CONNECTION WITH STANDARD OR EXTENDED COVERAGE ARE LIMITED AS INDICATED ON ALL PAGES OF THIS DOCUMENT.CATERPILLAR PRODUCTS CARRY NO IMPLIED WARRANTY OR MERCHANTABILITY OR FITNESS.STANDARD WARRANTY OR EXTENDED COVERAGE IS NOT INSURANCE. ACKNOWLEDGEMENTS: I have read and understand the terms,including limitations and exclusions,of Standard or Extended Coverage,and understand that it is not insurance.I also understand that the coverage applied for herein is not effective unless and until I pay the applicable charge for this extended coverage-I1 ncle and the SOS requirements (initial) OWNER/LESSEE SIGNATURE: i ..{ DATE:/( OW 20/..S The owner and product identified abo eet all re irement for the covera re ested and the applicable charge for extended coverage has been paid. DEALER SIGNATURE: I DATE: `tdp // TRANSFER:The unexpired po on of the Standard or Extended Repair Coy ge may be transferred with Western States Equipme ap oval (see section F on back for comp ete details).Complete the section below to quest transfer. PURCHASER NAME DATE MACHINE SOLD DATES INSPECTION COMPLETED&APPROVED Purchase Application ADDRESS(STREET,RR) (CITY/TOWN) (STATE) (ZIP CODE) _COMMERCIAL TRANSFER HOUR METER SIGNATURE OF NEW DEALER CONFIRMATION _FORESTRY READING BUYER _WASTE _GOVERNMENTAL AG By signing this agreement I agree to the terms on the following pages. CATERPILLAR STANDARD WARRANTY General Provisions:Caterpillar warrants the products sold by it,and operating within the geographic area serviced by authorized USA and Canadian Caterpillar dealers,to be free from defects in material and workmanship.In other areas and for other products,different warranties may apply.Copies of applicable warranties may be obtained by writing Caterpillar Inc. 100 N.E.Adams St.,Peoria IL,USA 61629-3345. Warranty Period:The Standard Caterpillar Machine Warranty is 12 Months/UNLIMITED hours of operations(whichever occurs first),based upon Caterpillar's recommended guidelines.For new associated work tools,the warranty period is 12 Months/UNLIMITED hours,starting from the date of delivery or sale to first user.No extended coverage is available for Caterpillar work tools.For new replacement engines,the warranty is 6 months,starting from date of delivery to the first user.Note:For hydraulic line's quick connect/disconnect components sold on compact wheel loaders,mini hydraulic excavators,skid steer loaders,multi terrain loaders,and compact track loader machines,the warranty period is 50 hours starting from the date of delivery to the first user. Caterpillar Responsibilities:If a defect in materials or workmanship is found during the Standard Warranty period,Caterpillar will,during normal working hours and at a place of business of a Caterpillar dealer or other source approved by Caterpillar. 1)Provide(at Caterpillar's choice)new,remanufactured,or Caterpillar-approved repaired parts or assembled components needed to correct the defect.2)Replace lubricating oil,filters,antifreeze,and other service items made unusable by the defect.3)Provide reasonable or customary labor needed to correct the defect.Note:Items replaced under this warranty become the property of Caterpillar. Owner Responsibilities:The user is responsible for: 1)Providing proof of delivery date to the first user.2)The costs associated with transporting the product.3)Labor costs, except as stated under"Caterpillar Responsibilities".4)Local taxes,if applicable.5)Parts shipping charges in excess of those which are usual and customary(air freight).6) Costs to investigate complaints,unless the problem is caused by a defect in Caterpillar material or workmanship.7)Giving timely notice of a warrantable failure and promptly making the product available for repair.8)Costs associated with the performance of required maintenance(including proper fuel,oil,lubricants and coolant)and items replaced due to normal wear and tear.9)Allowing Caterpillar access to all electronically stored data.10)Costs associated with travel time and mileage required for on-site repairs. EXTENDED REPAIR COVERAGE A. General Provisions:During the selected coverage period,Western States Equipment will repair or replace,at its option,covered components of the product identified on the face of this document under the Extended Coverage Section.Coverage is subject to the listed conditions of"Standard","Full Machine","Power Train",or"Power Train Plus Hydraulics"and for the appropriately indicated"Months"and"Hours"for components that are defective in material or workmanship, subject to the terms and conditions set forth on both sides of this document.Such repair or replacement will be free of charge for parts and labor,except as otherwise stated below or as stated within the Standard Caterpillar Warranty section above.Under the"Governmental Full Machine"option,the extended coverage includes Scheduled Oil Sampling materials and analysis provided by Western States Equipment at Caterpillar's prescribed intervals.An Extended Coverage Contract is not required for purchase or to obtain financing. Warranty Periods:Warranty periods for Extended Coverage are indicated in the extended warranty coverage box on the face of this document.The coverage is listed for hours and months,whichever expires first. Owners Responsibilities:The owner(lessee,for leased products)at their expense,must maintain the product in accordance with the product's Operators Manual,and,upon request,provide adequate records verifying maintenance.For the"Power Train","Power Train Plus Hydraulics",and"Full Machine"Extended Coverage,Scheduled Oil Sampling(SOS)must be taken by the owner at Caterpillar recommended intervals and sent to Western States Equipment.Failure to do so could jeopardize the Extended Coverage and result in shared liability on a pro rata basis if SOS could have predicted or reduced the cost of a covered failure.Note:Any malfunction of the service meter shall be reported within 30 days of said malfunction in writing,or this agreement is null and void. Power Train Extended Coverage:The following components are covered.If a component is not listed,it is not covered. 1)ENGINE:basic engine including engine components essential to engine operation(i.e.,fuel pump,oil pump,water pump,turbocharger,governor,engine control module,etc.).2)TRANSMISSION:includes transmission pump and hydraulic controls.3)TORQUE CONVERTER/DIVIDER.4)DRIVE LINE:includes pinion and bevel gear.5)TRANSFER GEAR GROUP.6) DRIVE AXLES.7)FINAL DRIVES.8)HYDRAULIC DRIVE PUMPS AND MOTORS:on hydraulic excavators and machines equipped with hydrostatic drive or differential steering,including hydrostatic lines between the pump and motor.9)BRAKE COMPONENTS for track-type loaders and tractors,only if they also provide steering. 10) STEERING CLUTCH COMPONENTS:on track-type loaders and tractors,if so equipped. 11)DIFFERENTIAL STEERING COMPONENTS:includes differential steer planetary group,pump,motor and pilot valves. 12)VIBRATORY COMPONENTS:on vibratory compactors.Includes vibratory mechanism,hydraulic pump and motor, hydraulic valves,universal joints,bearings,and drum isolation system. 13)ROTOR DRIVE MECHANISM:on paving profilers,reclaimers and stabilizers.This includes the drive shaft group,sheave groups,and clutch group.This excludes belts,chains and rotor brakes.14)ELECTRONIC CONTROLS AND SENSORS:which function to direct power for moving the machine.This includes power shift controls,engine pressure controls,differential lock,and fingertip controls.Also includes the wiring connectors that are part of the designated power train components. Power Train Plus Hydraulics Extended Coverage:The following components are covered.If a component is not listed,it is not covered.Power Train Plus Hydraulics coverage includes all of the above listed items under Power Train for the appropriately indicated hours and months,plus the following: 1)HYDRAULIC/STEERING HOSES AND LINES.2)HYDRAULIC QUICK-COUPLERS AND SWIVELS.3)HYDRAULIC TANKS:includes specific internal parts.4)HYDRAULIC OIL FILTER BASE, excluding hydraulic oil filters.5)HYDRAULIC PUMPS AND MOTORS:including steering pumps(main and supplemental).6)HYDRAULIC CYLINDERS:steering, suspension,and implement hydraulic cylinders(includes bulldozer and ripper cylinders on track-type tractors).7)HYDRAULIC VALVES AND CONTROLS:includes all parts that make up a valve for directing or controlling hydraulic fluid for steering and implements,including automatic blade controls and bucket position controls.8) HYDRAULIC ACCUMULATORS:steering and implement.9)HYDRAULIC OIL COOLERS:steering and implement. Full Machine Extended Coverage:All of the listed items included in the POWER TRAIN and POWER TRAIN PLUS HYDRAULICS coverage,plus all attachments/accessories that were installed on the product before delivery which are not covered by another warranty,for the appropriately indicated hours and months of coverage on the face of this document(whichever expires first).Governmental application"Full Machine Failsafe Coverage"will also include all fluid filters and pre-paid SOS as prescribed by Caterpillar's recommendations and a 95%machine availability as recorded by owner.Machine availability for Governmental application Full Machine Failsafe coverage will be determined by: Scheduled Hours Available for Work(numerator) Scheduled Hours(denominator) The machine availability will be evaluated at 12-month intervals.If machine availability is below 95%,Western States Equipment will reimburse owner$25.00 per hour for the hours necessary to"enhance"availability to the 95%level. Note:"Power Train","Power Train Plus Hydraulics",and"Full Machine"coverage continue(unless transferred or terminated as per Section C or G below)until the expiration of the hours or months listed on the face of this document.The coverage period ends after reaching the specified number of months selected,or when the machine's hour meter reaches the specified number of hours limitation selected,whichever occurs first.Extended Coverage is available only through Western States Equipment for Caterpillar Equipment. Note:Once Extended Coverage becomes effective,Western States Equipment's obligations there under extend only to the applicant identified on the face of this document, unless the remaining coverage is transferred to a subsequent end use purchaser of the product in accordance with Section F below,and indicated on the face of this document,or cancelled under Section G below. Note:The travel time and mileage/hauling option is available only to Governmental application"Full Machine Failsafe coverage"option. B. ITEMS NOT COVERED:Western States Equipment is not responsible for the following: 1)Premiums charged for overtime labor requested by the owner/lessee. 2)Transporting the product to and from the place where service is performed,or service calls made by the repairing dealer if the travel time and mileage/hauling Form#SVC15-0 8/05/2011 option is not included.3)Depreciation or damage caused by normal wear,lack of reasonable and proper maintenance,failure to follow operating instructions, misuse,lack of proper protection during storage,vandalism,the elements,collision or other accidents,or acts of God.4)Normal maintenance and replacement of maintenance and wear items,such as filters,oil,fuel,hydraulic fluid,lubricants,coolants and conditioners,labor for taking oil sample,tires,Freon,batteries,lights, paint,fuses,glass,seat upholstery,undercarriage,lubricated joints(including pins and bushings),blades and cutting edge parts,belts,dry brakes,dry clutch linings, and bulbs.5)Any defect in a non-covered component,or damage to or failure of a covered component caused by a defect in a non-covered component.6) Travel time and mileage for Extended Repair Coverage repairs in the field,if travel time and mileage/hauling option is not included.7)Auxiliary Equipment Manufacturers' attachments and new associated work tools and attachments carry only one warranty as prescribed by that manufacturer.8)Western States Equipment will not be responsible for repairs,cost of repairs,or be assessed hours against the availability guarantee for damage or downtime caused by fire,vandalism,accident,operator's abuse,negligence,strikes,acts of God,failure to perform the manufacturer's recommended maintenance as set forth by the lube and maintenance guide,tire failure or Auxiliary Equipment or Attachments.9)Owner/Lessee will not assess the time required to perform the manufacturer's recommended maintenance as set forth by the lube and maintenance guide against the availability guarantee. 10)All costs(including travel time and mileage/hauling)for repairs required because of abuse or improper operation will be charged to the owner/lessee.Minor repairs that do not affect the immediate and safe operation of the machine will be completed within the earliest possible period within Western States Equipment maintenance schedule. C. TERMINATION OF EXTENDED COVERAGE:Western States Equipment is relieved of its obligation under Extended Coverage if: 1)The product is altered or modified in any manner not approved by Western States Equipment in writing.2)The product's hour meter has been rendered inoperative or otherwise tampered with,or any malfunction of the service meter is not reported within 30 days of said malfunction in writing to Western States Equipment.3)The product is removed from Western States'territory.4)Use is made of the product within an application group other than the one designated in the original application for Extended Coverage for the product. D. LIMITATIONS OF WESTERN STATES EQUIPMENT LIABILITY:In no event will Western States Equipment be liable for any incidental or consequential damages(including,without limitation,loss of profits,rental of substitute equipment,or other commercial loss)that may be caused due to a defect in the product of the breach of performance of Western States Equipment obligations under Extended Coverage. E. OBTAINING EXTENDED COVERAGE SERVICE:To obtain service the owner/lessee must request Extended Coverage Service from the nearest Western States Equipment branch.When making a request,the owner/lessee must promptly make the product available for repair and inform the dealer of what they believe is the problem/defect.Extended Coverage service can be performed in the field if the owner/lessee and servicing branch agree to do so.However,Western States Equipment will not be held responsible for any additional cost incurred because of the decision to repair a machine in the field.Dealer Branches toll free number: Idaho Falls,ID 877-552-2287 Pendleton,OR 888-388-2287 Lewiston,ID 800-842-2225 Pasco,WA 800-633-2287 Meridian,ID 800-852-2287 Spokane,WA 800-541-1234 Pocatello,ID 800-832-2287 Hayden,ID 208-762-6600(Not a toll free number) Twin Falls,ID 800-258-1009 Kalispell,MT 800-635-7794 Missoula,MT 800-548-1512 LaGrande,OR 800-963-3101 F. TRANSFER OF UNUSED COVERAGE UPON RESALE:Remaining Extended Coverage applicable to a used Caterpillar product is transferred to a subsequent end use purchaser only if: 1)The subsequent purchase is made before the product's Extended Coverage expires.2)The product is determined by Western States Equipment to be in satisfactory condition following an inspection performed by an authorized Western States Equipment branch at the subsequent end use purchaser's expense.3)The subsequent end use purchaser receives Western States Equipment's written confirmation of the transfer.4)The use of the product by the subsequent end use purchaser remains in the initialsame application group designed on the product's original coverage application,or the subsequent end use purchaser pays the amount specified by Western States Equipment for conversion of the remaining coverage to a different application group. G. CANCELLATION OF COVERAGE:The owner may cancel Extended Coverage: 1)Within thirty(30)days of machine purchase by original end use purchaser if no claim has been made,and receive a full refund of the coverage purchase price,less a$50.00 cancellation fee.2)At any other time during the coverage by the first end use purchaser and receive a pro rata refund of the coverage purchase price for the unexpired term of the coverage,based on the number of lapsed months,less a $50.00 cancellation fee.3)Prior to cancellation owner/lessee must provide written notice of the intent to cancel coverage to the nearest Western States Equipment branch. H. COVERAGE AFFORDED UNDER THIS CONTRACT IS NOT GUARANTEED BY THE IDAHO INSURANCE GUARANTY ASSOCIATION. OBLIGATIONS OF THE MACHINE SERVICE CONTRACT PROVIDER UNDER THIS MACHINE SERVICE CONTRACT ARE GUARANTEED UNDER A SERVICE CONTRACT LIABILITY POLICY.SHOULD THE MACHINE SERVICE CONTRACT PROVIDER FAIL TO PAY OR PROVIDE SERVICE ON ANY CLAIM WITHIN SIXTY(60)DAYS AFTER PROOF OF LOSS HAS BEEN FILED,THE MACHINE SERVICE CONTRACT HOLDER IS ENTITLED TO MAKE A CLAIM DIRECTLY AGAINST THE INSURANCE COMPANY. I. UPON FAILURE OF THE OBLIGOR TO PERFORM UNDER THE CONTRACT,CATERPILLAR INSURANCE COMPANY SHALL PAY ON BEHALF OF THE OBLIGOR ANY SUMS THE OBLIGOR IS LEGALLY OBLIGATED TO PAY OR SHALL PROVIDE THE SERVICE THAT THE OBLIGOR IS LEGALLY OBLIGATED TO PERFORM ACCORDING TO THE OBLIGOR'S CONTRACTUAL OBLIGATION UNDER THE SERVICE CONTRACTS ISSUED BY THE OBLIGOR,AND CATERPILLAR INSURANCE COMPANY WILL PAY CLAIMS AGAINST THE OBLIGOR FOR THE RETURN OF THE UNEARNED PURCHASE PRICE OF THE SERVICE CONTRACT. J. THIS DOCUMENT IS NOT AN IMPLIED WARRANTY.THIS COVERAGE IS EXPRESSLY IN LIEU OF ANY OTHER WARRANTIES,EXPRESS OR IMPLIED,INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.REMEDIES UNDER THIS COVERAGE ARE LIMITED TO THE PROVISION OF MATERIAL AND LABOR,AS SPECIFIED HEREIN.WESTERN STATES EQUIPMENT IS NOT RESPONSIBLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES.. K. REGISTER OBLIGOR:WESTERN STATES EQUIPMENT COMPANY IS REGISTERED OBLIGOR,WHO IS CONTRACTUALLY OBLIGATED TO THE SERVICE CONTRACT HOLDER/OWNERS NAME TO PROVIDE SERVICE UNDER THIS SERVICE AGREEMENT.WESTERN STATES EQUIPMENT COMPANY CAN BE CONTACTED AT THE FOLLOWING ADDRESS OR PHONE NUMBER:WESTERN STATES EQUIPMENT COMPANY 500 E OVERLAND ROAD,MERIDIAN,ID 83642(208)888-2287.SERVICE CONTRACT INSURER:CATERPILLAR INSURANCE COMPANY 2120 WEST END AVE.,NASHVILLE,TENNESSEE 37203 1 800 248-4228 Form#SVC1 5-0 8/05/2011 CATERPILLARv Caterpillar Inc. ❑ Check when information has been DO NOT SEND IF entered into the Product ENTERED INTO P.I.S. Peoria,Illinois 61629 Information System through Caterpillar dealer terminal. Delivery Service Record Comprobante Del Servicio De Entrega DLR.CODE MODEL MACHINE SERIAL NO. HOURS DELIVERY DATE ENGINE SERIAL NO. COD.DISTRIB. MODELO N/S MAQUINA HORAS FECHA DE ENTREGA N/S MOTOR H510 950 UT R4A02015 10/15/13 ATTACHMENTS INSTALLED- BUCKET,DOZER,RIPPER,WINCH,CAB, ACCESORIOS INSTALADOS: CUCHARON,HOJA,DESGARRADOR,MALACATE, TRANSMISSION,BOOM,STICK,ETC. CABINA,TRANSMISION,PLUMA,BRAZO,ETC. Mfr.&Model or Part No. Mfr.&Model or Part No. Mfr.&Model or Part No. Mfr.&Model or Part No. Fabricante y Modelo o N/P Fabricante y Modelo o N/P Fabricante y Modelo o N/P Fabricante y Modelo o N/P Serial No. Serial No. Serial No. Serial No. N/S N/S N/S N/S Customer Name(Please Print) City Of McCall Nombre del Cliente(con letra de imprenta) Full Mailing Address 216 E Park Street Direcci6n Completa McCall Idaho country Valley Pajs Delivery service on this machine has been completed, including the following items. Check(J)when each item is completed. El servicio de entrega de esta maquina se ha completado incluso los puntos siguientes. Marque(,/)cada punto que complete. 1.Operation Guide delivered with machine and operating controls and warning labels explained to user. 3.Parts Book delivered with machine. I�I Se entreg6 con la maquina la Guia de OperaciOn y se explic6 al usuario la operaci6n de los controles y los rOtulos de advertencia. Se entreg6 con la maquina el Catalogo de Piezas. I 1 2.Maintenance Guide delivered with machine and maintenance service,fluid levels and adjustments explained to user. 4 All items on Delivery Checklist have been completed. I I Se entreg6 con la maquina la Guia de ConservaciOn y se explic6 al usuario el servicio de conservaci6n,ajustes y nivel de fluidos Se hizo todo to indicado en el Comprobante de Entrega (No.de F rma 01-085314-03). Dir.Rep.Signature User's nature Firma del representante Firma del usuario del distribuidor Delivery Checklist CONTINUED ON REVERSE SI E At dealership At delivery area with customer (owner, operator): ❑ Make sure all pending Safety Product Improvement ❑ Explain Parts Book. Programs(PIP)have been completed. ❑ Explain all warning labels on machine. 0 Make sure all necessary forms and literature 0 Show location of all serial numbers on machine. are available. ❑All decals are installed. Lubrication and Maintenance. ❑All attachments are installed/available. 0 Explain Maintenance Guide. ❑ Install shipping/service lock pins in fire suppression 0 Instruct how to use lubrication and system(if equipped)when transporting machine. maintenance chart. 0 Show all lubrication points on the machine and attachments. Lista de Comprobacibn SIGUE AL DORSO En la distribuidora En el lugar de entrega, con el cliente (propietario, operador). ❑AsegUrese que se completaron los programas pendientes de 0 Explicar el Catalogo de Piezas. mejoras al producto para fines de seguridad(PIP). ❑ Explicar todos los r6tulos de advertencia de la m8quina. ❑Asegurese que hay disponibles todas las formas y folletos ❑ Mostrar ubicaciOn de todos los nUmeros de serie en la m8quina. necesarios. ❑ Se han puesto todas las etiquetas. Lubricacion y ConservaciOn ❑Todos los accesorios estOn instalados/disponibles. ❑ Explicar la Gula de Conservaci6n. ❑ Se han instalado los pasadores de traba para embarque/servicio ❑ Indicar c6mo se utiliza el cuadro de lubricaciOn y en el sistema supresor de incendios(si tiene)al transportar la conservaci6n. maquina. ❑ Mostrar todos los puntos de lubricaciOn de la 01-08 531 4-09(3515) maquina y accesorios. .,,. FLUID LEVELS—Instruct how to measure all fluid TT - Track type Machine COMPLETE THE DELIVERY FORM WITH THE CUSTOMER. WALK AROUND INSPECTION levels and fill compartments. WT- Wheel type Machine SUBMIT THE COMPLETED FORM TO THE APPROPRIATE PERSON. nHose and wire interferences (rubbing,twisting,sharp bends) ALL MACHINES IMPORTANT ITEMS TO INSTRUCT AND/OR DEMONSTRATE In Loose wiring harnesses Final Drives n Coolant(Inspect with engine n Coolant conditioner- explain purpose (especially in the engine area) Fuel sto d and cool _ Loose or missing bolts&fasteners _ ppe ) how much to add Belt tension -fan Hydraulic Tank _ Differential(s)(WT) when to add — Engine Oil Crankcase Windshield washer reservoir _ Air filter indicator -alternator _ Batteries (if equipped) Track tension adjustment(TT) -compressor — Transmission/Powertrain Attachment fluid level(if equipped) _ suppressionsystemP ( eq per) (if equipped) n equi d) Fire -Remove ins rt ui d Inflate tires to proper pressure(WT) LEAKS TTT,PIPELAYER MOTOR GRADERS DEMONSTRATE Hydraulic Recoil spring oil compartments _ Tandem drive housings Engine oil (elevated sprocket only) _ Circle drive housing _ Starting and Stopping operations _ Transmission/Powertrain ❑ Track roller frame pivot bearing Frt.wheel spindle bear housing. _ Transmission operation Coolant (elevated sprocket only) Steering— _ Fuel Cable drum trans.(pipelayer) Throttle Differential(s)(WT) Reverse gear housing(pipelayer) TRACTOR SCRAPERS _ Brake Brakes Towing winch(pipelayer) Wheel coolant Brake-service Final drives_ Scraper wheel bearings Brake-parking(if equipped) _ Valves Elevator speed reducer _ Hydraulic controls and implement operation _ Hoses TRACK TYPE LOADERS (elevating scrapers only) Transmission lever lock Cylinders nElevator idler rollers Differential lock(Motor graders,tractor scrapers) Fittings _ Pump drive(963,973 only) (elevating scrapers only) _ Transmission neutralizer(wheel loaders) Undercarriage(f7) Track roller frame pivot shaft n Steering gear sector housing Cushion hitch control(tractor scrapers)(if equipped) Transmission hold(tractor scrapers) OFF-HIGHWAY TRUCKS/TRACTORS Transmission modulator(motor graders) WATER AND SEDIMENT DRAINS FOR _ EXCAVATORS,LOGGER Hydraulic unloading valve(motor graders) Front wheel bearings — Fuel Tank — Decelerator(motor graders) — Pump drive Brake fluid reservoirs Fuel/water separator(if equipped) _ Bucket positioner adjustment(Track type Loaders&Wheel Loaders) Swing gear After-cooler syst.(777,776 only) (if Air reservoirs Clamshell rotator gear drive equipped) Cab — lights (if equipped) WHEEL LOADERS,COMPACTORS, -windshield washer/wiper SHOW LOCATION OF ALL FILTERS SKIDDERS heater(if equipped) _ Hydraulic Brake fluid reservoirs — air conditioner(if equipped) Engine Oil Winch(skidders) — seat Fuel OPERATION — seat belt Transmission/Powertrain Review Operation Guide n Attachments gauges Engine Air — EMS indicator lights(if equipped) Cab air system(if equipped) NIVEL DE FLUIDOS-Mostrar cOmo se miden todos M/R=de ruedas LLENE EL FORMULARIO DE ENTREGA CON EL CLIENTE. INSPECCION ALREDEDOR DE LA MAQUINA los niveles de fluido y honor los compartimientos. M/C=de cadenas PRESENTE EL FORMULARIO COMPLETO A LA PERSONA INDICADA. R/M=rueda motriz 7 Interferencia entre mangueras y cables TODAS LAS MAQUINAS PUNTOS IMPORTANTES QUE SE DEBEN MOSTRAR 0 (roce,torcimiento,dobleces) DEMOSTRAR n Mazo de cables flojo Mandos Finales I I Refrigerante(comprobar con el motor n (espec.alrededor del motor) Combustible parado y frio) Acondicionador de refrigerante-explicar su finalidad Tornilleria floja o que falta Tongue Hidraulico Diferenciales(M/R) cuanto agregar -- Tension de las corneas-ventilador Aceite del Carter Deptsito del lavaparabrisas cuando agregar ahemador `: _ Baterias (si tiene) Indicador de filtro de aire Transmisibn/Tren de Fuerza In Nivel del fluido de accesorios Adjustador de las cadenas -compresor (si tiene) Sistema supresor de incendios- (si tiene) ' TRACTORES DE CADENAS, sacar pasadores de embarque/servicio(si tiene) PERDIDAS TIENDETUBOS MOTONIVELADORAS Inflar neumaticos a la presion apropiada(M/R) nDep.aceite resorte amortguador DEMUESTRE Hitlraulicas yg (R/M elevada sdamente) _ Caja de mandos tandem — Aceite del motor f ❑ pivote bast.rodillos Operaciones de arranque y parada — f Caja de mando del circulo TransmisiOn/Tren de fuerza CojineteFuncionamiento de la transmisiOn (R/M elevada sdamente) Caja coj.punta eje ruedas del. '— _ Refrigerante Direccien Trans.tambor de cable Mendehbos) Acelerador Combustible Caja a gran.manila atra5(tiendearbos) MOTOTRAILLAS Freno Diferenciales(M/R) Malacate de rem ue Refri rante de las ruedas Frenos _ 9e Frenos de servicio Mandos finales (aendeNbos) Coj.de ruedas(trailla) Frenos de estacionamiento(si tiene) Reductor de velocidad del elevador V9lvulas _ Operation de los controles hidraulicos e implementor _ solo traillas autoelevadoras) Mangueras GARGADORES DE CADENAS n ( — Traba de la palanca de transmisiOn — Rod.rueda guia del elevador Cilindros — Traba del diferencial(motoniveladoras,motoVaillas) Mao de bombs(963.973 solanente) (solo traillas autoelevadoras) _ Neutralizador de la transmisiOn(cargadores de ruedas) —Mande nd Eje pivote basridorrodi//os freedoms n Caja del sector dentado de la direction _ Control del enganche amortiguador(mototraillas)(si tienen) Tren de rodaje(M/C) .. Traba de la transmisidn(mototraillas) DRENAJE DE AGUA Y SEDIMENTO: _ CAMIONES DE OBRA/CAMIONES Modulador de la transmisi6n(motoniveladoras) EXCAVADORAS,TALADOR TRACTORES — VaNula de descarga hidraulica(motoniveladoras) Tranque de combustible Cojinetes de ruedas delanteras Descelerador(motoniveladoras) _ Separador de a ua/combustible(Sitiene) Mando de bombs — 9 ( g, — Dep6sitos de fluido de frenos Ajuste del situador del cucharen Car adores De 6sitos de aire(si Ergranajes de rotaciOn ( 9 ) P tiene) Sistema posenfriador(solo 776,777) Cabins MOSTRAR LA UBICACION DE Mando del engrana e de rotation de la almri a/bivalve CARGADORES DE RUEDAS, — lutes TODOS LOS FILTROS (si tiene) COMPACTADORES, — limpiaparabrisas ARRASTRADORES DE TRONCOS — calorifero(si tiene) _ Hidraulico — Depositor de fluido de los frenos — aire acondicionado(si tiene) _ Aceite del motor asiento Combustible Malacate(arrastradores de troncos) OPERACION — cinturon de seguridad — TrensmisiorVTren de Fuerza Repase la Guia de Operation I I ACCESORIOS - indicadores _ Ake del motor lutes Sistema de Verification Electrdnica(si tiene) Sistema de aire de la cabins(si tiene) ij (' 1 WESTERN �f r STATES CAT Western States Equipment Co. General Office Box Box 38 October 15th 2013 Boise,ID 83707-0038 City Of McCall 216 E Park St McCall Idaho 83638 Gentlemen: Please accept this letter as a guarantee for purchase of your Caterpillar Model 950UT Wheel Loader, Serial Number R4A02015 this guarantee is made in conjunction with the Machine Warranty. We agree to purchase this unit from you at the end of the five years for the amount of$ 182,000 based on a maximum of 5,000 S.M.U.'s. If the time period or service meter unit limits are exceeded the above machine will be appraised to determine a new value. Lessee agrees that each Unit, upon its return, shall: 1. Be in sound mechanical condition and to be in good working order under full load. 2. Have the same attachments and piece parts as when delivered. 3. a. Have tires in safe and operable condition with a minimum of (40%)of wear remaining tread life. OR b. Have a minimum of forty percent(40%) life remaining on all undercarriage components including track shoes, links,pins and bushings, idlers, bogies, sprockets, carrier rollers, track rollers; 4. Have no cracked or broken glass; 5. Have no missing sheet metal and any damage to sheet metal; 6. Have no structural damage to frame. 7. Have met the full requirement of the warranty procedures, including scheduled oil sampling at the prescribed intervals. 8. Have no damage or modification to machine ROPS (roll over protection structure)per Caterpillar guidelines, repair or replacement of ROPS will be billed at time of return. We require thirty(30) days written notice if you choose to exercise this guarantee and transfer title of the above-described equipment to Western States Equipment Company. If you have any questions or if we may be of further assistance,please call. Sincerely, pr i J. D in Dye es Vice President& Treasurer Used quip nt Manager Hayden,ID Idaho Falls,ID Lewiston,ID Meridian,ID Pocatello,ID Twin Falls,ID 208.762.6690 208.552.2287 208.746.3301 208.888.2287 208.232.2640 208.734.7330 Kalispell,MT Missoula,MT LaGrande,OR Pendleton,OR Pasco,WA Spokane,WA 406.752.3030 405.721.4050 541.963.3101 541.276.5812 509.547 9541 509.535.1744 Explanation of Content CAT Transaction Number 2120023 Financial Thank you for selecting Caterpillar products and for allowing Caterpillar Financial Services Corporation to serve your financing needs. Included in this document package are all of the forms that will be needed for standard tax exempt lease purchase transactions. The forms have been designed to be clear, concise and user friendly. We have also provided a brief explanation of the purpose of each form. If you wish to discuss any of the forms or have any questions about any aspect of this transaction, we encourage you to contact your Caterpillar Dealer or Caterpillar Financial Services Corporation at 1-866-263-3791 Option#5. A. Governmental Equipment Lease-Purchase Agreement. The Governmental Lease-Purchase Agreement contains the terms that govern each transaction between us. It is the standard Caterpillar Financial Services Corporation tax exempt lease-purchase agreement,and provides that we will lease to you the equipment described therein pursuant to a full payout amortization schedule, A new Governmental Equipment Lease-Purchase Agreement will have to be signed in connection with each transaction. B. Lessee's Authorizing Resolution. The Authorizing Resolution is evidence you have taken the necessary governing body actions to approve the Governmental Equipment Lease-Purchase Agreement. Although the authorizing instrument is often a resolution, it may also take other forms such as an ordinance. We are agreeable to using your customary or standard form provided it contains specific approval for the lease-purchase agreement, designates persons who are authorized to sign on your behalf and either approves the document forms or delegates this authority to a named official C. Verification of Insurance. The Certificate of Insurance is intended to supply information regarding the insurance coverage for the equipment being lease-purchased. You will need to supply the requested information to us so we can verify coverage. D. Opinion of Counsel. An opinion of counsel is required in connection with each Governmental Equipment Lease-Purchase Agreement. The opinion is intended to confirm that you have complied with all open meeting laws, publication and notice requirements, procedural rules for governing body meetings,and any other relevant state or local government statutes, ordinances, rules or regulations. We would be unable to confirm compliance with these laws and regulations ourselves absent long delays and higher costs so we rely upon the opinion of your attorney since he/she may have been involved in the process to approve our transaction and is an expert in the laws and regulations to which you are subject. The opinion also confirms that you are an entity eligible to issue tax-exempt obligations and that the Govemmental Equipment Lease-Purchase Agreement will be treated as tax-exempt as it is your obligation to ensure that you have complied with relevant tax law. E. Form of 8038G or GC. Form 8038 is required by the Internal Revenue Service in order to monitor the amount of tax-exempt obligations issued. You have to execute a Form 8038 for each Governmental Equipment Lease-Purchase Agreement. Whether a Form 8038 G or GC is required depends on the original principal amount of the Governmental Equipment Lease-Purchase Agreement. If the original principal amount is less than $100,000 Form 8038GC is filed with the IRS. If the original principal amount is $100,000 or more Form 8038G is filed with the IRS. Choose the appropriate 8038 form and complete according to IRS guidelines. Contact your TM or Sales Support Representative for assistance. IRS Form 8038G nttp7/www.irs.gov/pub/irs-pdfif8038g.pdf IRS Form 8038GC httn://www.irs.gov/toub/irs-ndf/f8038gc.pdf This Explanation of Contents is prepared as an accommodation to the parties named herein.It is intended as an example of some of the documents that Caterpillar Financial Services Corporation, in its reasonable judgment, may require and is not intended to constitute legal advice. Please engage and use your own legal counsel. We understand that the laws of the various states are different so nothing herein shall be construed as a warranty or representation that the documents listed herein are the only documents that may be required in any particular transaction or that any particular transaction, if documented in accordance with this Explanation of Contents, will be a valid, binding and enforceable obligation enforceable against the parties named herein in accordance with the terms of the documents named herein. Form NO RPGOVCOV 385662610/11120139'22964 CT DOCUMENT CHECKLIST(GOVERNMENTAL LEASE) CAT Transaction Number 2120023 Quote Number 3856626 Financial These documents were prepared especially for: CITY OF MCCALL 216 EAST PARK STREET MCCALL,ID 83638 Dealer:WESTERN STATES EQUIPMENT CO., H510 Date: 10/11/2013 Time:9:22 AM Comments:CHAD ALLEN Customer Executed Documents Comments ❑ Lease Purchase Document ❑ Delivery Certification ❑ Insurance Verification ❑ 8038G or 8038GC ❑ Advance Payment(cross out if N/A) ❑ Customer Information Verification ❑ Tax Exemption Certificate ❑ Any necessary Riders/Amendments O Lessee's Resolution+Minutes of Meeting OR ❑ Opinion of Lessee's Counsel ❑ Copy of Driver's License(Sole Proprietorships and Individuals) Dealer Executed Documents Comments ❑ Purchase Agreement ❑ Dealer Invoice O All Credit Conditions Met *If any of these documents are altered, or if the Buyer wishes to add or delete documents,please contact your CFSC Credit Analyst to obtain acceptance of any and all changes. Form No.RPGVCKLST 3856626 10/11/2013 9'22 AM CT I DAutom ation corn DE III Ii14�Ci'l�t1Ri�l II I I GOVERNMENTAL EQUIPMENT LEASE-PURCHASE AGREEMENT Lessee: CITY OF MCCALL Lessor: Caterpillar Financial Services Corporation Address: 216 EAST PARK STREET Address: 2120 West End Avenue City: MCCALL City: Nashville State/Zip: ID/83638 State/Zip:Tennessee 37203-0001 This Governmental Equipment Lease/Purchase Agreement is dated as of /s ( . Z e,3 (the"Agreement"). 1. LEASE PAYMENTS; CURRENT EXPENSE. Lessee agrees to pay the lease payments (the"Lease Payments")with respect to this Agreement during the term hereof in the amounts and on the dates specified below. The obligation of Lessee to pay Lease Payments extends only from the effective date of this Agreement until expiration of the current fiscal year of Lessee and thereafter if renewed by Lessee. The Agreement may be renewed for an additional fiscal year at the discretion of Lessee. In the event Lessee desires to renew the Agreement, it shall specifically appropriate funds in the budget adopted by Lessee to make scheduled Lease Payments. Lessor is authorized to insert the due dates of the Lease Payments and any other information that should be added hereto in order for this Agreement to reflect the specific agreements of the parties hereto. All Lease Payments shall be paid to Lessor without notice or demand at such place as Lessor may from time to time designate by written notice to Lessee. Lessee shall pay the Lease Payments exclusively from moneys legally available therefor, in lawful money of the United States of America. The obligations of Lessee, including its obligation to pay the Lease Payments due in any fiscal year, shall constitute a current expense of Lessee for such fiscal year and shall not constitute an indebtedness of Lessee within the meaning of the constitution and laws of the State of Idaho (the "State"). Nothing herein shall constitute a pledge by Lessee of any taxes or other moneys (other than moneys lawfully appropriated from time to time for the payment of the "Payments" (as defined in the last sentence of this Paragraph) owing hereunder. EXCEPT AS PROVIDED IN PARAGRAPH 4, LESSEE'S OBLIGATIONS TO MAKE THE PAYMENTS TO LESSOR IN THE AMOUNTS REQUIRED HEREBY ARE ABSOLUTE AND UNCONDITIONAL. LESSEE FURTHER EXPRESSLY AGREES THAT IT WILL MAKE ALL SUCH PAYMENTS TO LESSOR REGARDLESS OF, AND WILL NOT ASSERT AGAINST LESSOR, ANY DEFENSE, CLAIM, SETOFF, OR COUNTERCLAIM OR OTHER RIGHT, EXISTING OR FUTURE, WHICH LESSEE MAY HAVE AGAINST THE LESSOR OR ANY OTHER PERSON OR ENTITY FOR ANY REASON. As used in this Agreement, "Payments" shall mean the Lease Payments and any other amounts required to be paid by Lessee hereunder. Lease Payments shall be paid by Lessee to Lessor according to the attached payment schedule; provided that all accounts owing hereunder shall be due by the final lease payment date. If Lessor does not receive a Lease 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 when due or the highest charge allowed by law, whichever is less. The portion of the Lease Payments constituting principal shall bear interest(computed on the basis of actual days elapsed in a 360 day year)at the rate of 3.2% per annum. 2. SECURITY INTEREST. Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor, the items of equipment (the "Equipment") described below. In order to secure all of its obligations hereunder, Lessee hereby: (a) grants to Lessor a first and prior security interest in any and all right, title, and interest of Lessee in the Equipment and in all additions, attachments, accessions, and substitutions thereto, and on any proceeds therefrom and (b) agrees to do any further act and hereby authorizes the filing of such financing statements, or to execute and deliver such certificates of title, notices or acknowledgement or other instruments in form satisfactory to Lessor necessary or appropriate to evidence such security interest. Lessee at its expense will protect and defend Lessor's security interest in the Equipment and will keep the Equipment free and clear of any and all claims, liens, encumbrances and legal processes however and whenever arising. Description of Unit(s) Serial# (I)New 950K 2013 Caterpillar Wheel Loader R4A02015 Lessee confirms that it has an immediate need for, and expects to make immediate use of, substantially all the Equipment. The Equipment will be used by Lessee for the purpose of performing one or more of Lessee's governmental functions consistent with the scope of Lessee's authority and not in any trade or business carried on by a person other than Lessee. 3. WARRANTIES. LESSOR HAS NOT MADE AND DOES NOT MAKE ANY WARRANTY, REPRESENTATION OR COVENANT OF ANY KIND, EXPRESS OR IMPLIED, AS TO THE EQUIPMENT. AS TO LESSOR, LESSEE'S LEASE AND PURCHASE OF THE EQUIPMENT SHALL BE ON AN "AS IS" AND "WHERE IS" BASIS AND "WITH ALL FAULTS". Lessee shall enforce all warranties, agreements and representations, if any, with regard to the Equipment against the maker of such warranties. Except pursuant to an amendment as provided herein, no person is authorized to waive or alter any term or condition of this Agreement. 4. NONAPPROPRIATION. Lessee covenants and represents to Lessor that(a) Lessee's primary business official currently intends, to the extent permitted by State law, to include in Lessee's budget for approval by the governing board of Lessee for each successive fiscal year during the term of this Agreement a sufficient amount to permit Lessee to discharge all of its obligations hereunder, (b) Lessee has budgeted and has available for the current fiscal year sufficient funds to comply with its obligations under this Agreement and (c)there are no circumstances presently affecting Lessee that could reasonably be expected to adversely affect its ability to budget funds for the payment of sums due hereunder. In the event the governing board of Lessee fails or refuses to appropriate monies sufficient to make the Payments due during Lessee's next succeeding fiscal year this Agreement will not be renewed for such fiscal year and Lessee shall return to Lessor, no later than the last day of the last fiscal year for which appropriations were made for the Payments due hereunder(the"Return Date"), all, but not less than all, of the Equipment, at Lessee's sole expense, in accordance with Paragraph 18, and this Agreement shall terminate on the Return Date without penalty or expense to Lessee and Lessee shall not be obligated to pay the Lease Payments beyond the last fiscal year for which appropriations were made, provided, that Lessee shall pay all Lease Payments and other Payments for which moneys have been appropriated or are otherwise available, provided further, that Lessee shall pay month-to-month rent at the rate set by Lessor for each month or part thereof that Lessee fails to return the Equipment. 5. TAX WARRANTY. Lessee is validly existing as a body corporate and politic and public instrumentality of the State with the power and authority to enter into this Agreement and to carry out its obligations hereunder and the transactions contemplated hereby. Lessee shall, at all times, do and perform all acts and things necessary and within its control in order to assure that the component of the Lease Payments received by the Lessor that for the purposes of Federal income taxation is treated as interest shall be excluded from the gross income of the Lessor, and Lessee shall not take or permit any act or thing that could cause such component received by the Lessor to be included in the gross income of the Lessor for the purposes of Federal income taxation. The Equipment will not be used in any trade or business carried on by a person other than Lessee. Lessee will report this Lease Purchase to the Internal Revenue Service by filing Form 8038G, 8038C or 8038 whichever is applicable. Lessee agrees that if the appropriate form is not filed, or if the Lessee is in breach of any other tax warranty in this paragraph,the interest rate will be adjusted to the equivalent taxable interest rate. 6. ASSIGNMENT. Lessee may not, without Lessor's written consent, by operation of law or otherwise, assign, transfer, pledge, hypothecate or otherwise dispose of its right, title and interest in and to this Agreement and the Equipment and/or grant or assign a security interest herein, in whole or in part. Lessor may not transfer, sell, assign, pledge, hypothecate, or otherwise dispose of its right, title and interest in and to this Agreement and the Equipment and/or grant or assign a security interest herein, in whole or in part. 7. INDEMNITY. To the extent permitted by law, Lessee assumes liability for, agrees to and does hereby indemnify, protect and hold harmless Lessor and its agents, employees, officers, directors, subsidiaries and stockholders from and against any and all liabilities, obligations, losses, damages, injuries, claims, demands, penalties, actions, costs and expenses (including reasonable attomey's fees), of whatsoever kind and nature,arising out of the use, condition(including, but not limited to, latent and other defects and whether or not discoverable by Lessee or Lessor), operation, ownership, selection, delivery, storage, leasing or return of any item of Equipment, regardless of where, how and by whom operated, or any failure on the part of Lessee to accept the Equipment or otherwise to perform or comply with any conditions of this Agreement. The indemnities contained in this Paragraph shall continue in full force and effect notwithstanding the termination of this Agreement. Lessee is an independent contractor and nothing contained in this Agreement shall authorize Lessee or any other person to operate or use any Equipment so as to incur any obligation on behalf of Lessor or impose any liability on Lessor. Nothing in this Agreement is intended nor should any provision of this Agreement be construed to, limit, waiver,abridge or otherwise modify any rights, claims, or causes of action that the Lessee may have against any person or entity other than Lessor. 8. LOSS AND DAMAGE. Lessee shall bear the entire risk of loss, theft, destruction or damage to the Equipment or any part thereof from any cause whatsoever. No loss, theft, destruction or damage of the Equipment shall relieve Lessee of the obligation to make Lease Payments or to perform any obligation owing hereunder. In the event of loss,theft, destruction or damage of any kind to any item of the Equipment, Lessee shall immediately notify Lessor and, at the option of Lessor, shall: (a)place the same in good repair,working order and condition (ordinary wear and tear excepted); or(b) replace the same with like equipment in good repair, working order and condition (ordinary wear and tear excepted). The "net proceeds" (as defined in the last sentence of this Paragraph) of any insurance recovery shall be applied to clause (a) or(b) as provided above unless an Event of Default shall have occurred and be continuing in which case the net proceeds shall be paid to Lessor to the extent of, and applied to the amount due and payable to Lessor under this Agreement. Any net proceeds remaining after application of net proceeds in accordance with the preceding sentence shall be paid to, and belong to, Lessee. If the net proceeds of any insurance recovery are insufficient to pay in full for the repair, restoration or replacement of the Equipment, Lessee shall either complete the work to the satisfaction of Lessor, and pay any costs in excess of the net proceeds without any claim for reimbursement or credit from Lessor or pay the then applicable purchase price for the Equipment(as determined by Lessor according to its usual and customary manner)plus all Payments then due and owing hereunder. "Net proceeds" shall mean the amount remaining from the gross proceeds of any insurance claim or condemnation award after deducting all expenses (including reasonable attorneys'fees)incurred in the collection of such claim or award. 9. INSURANCE.Lessee agrees to keep the Equipment insured to protect all interests of Lessor,at Lessee's expense,for such risks, in such amounts, in such forms and with such companies as Lessor may require, including but not limited to fire and extended coverage insurance, explosion and collision coverage,and personal liability and property damage liability insurance. Lessor may(but shall not be obligated to) insure the Equipment at the expense of Lessee. Any insurance policies relating to loss or damage to the Equipment will name Lessor as loss payee as its interests may appear and the proceeds may be applied toward the replacement or repair of the Equipment or the satisfaction of the Payments due hereunder. Any such policies shall contain a provision that they may not be cancelled or the coverage reduced without thirty (30) days prior written notice to Lessor. Any liability insurance policies will name Lessee and Lessor as co-insured and the proceeds shall be applied first to Lessor to the extent of its liability, if any, and the balance to Lessee. Lessee shall furnish certificates, policies or endorsements to Lessor as proof of such insurance. Lessee hereby appoints Lessor as Lessee's attorney-in-fact to make claim for, receive payment of and execute or endorse all documents, checks or drafts for loss or damage or return premiums under any insurance policy issued on the Equipment and hereby assigns to Lessor all of its right, title and interest in and to such insurance policies and the proceeds thereof. If Lessee is self-insured with respect to equipment such as the Equipment, Lessee shall maintain an actuarially sound self-insurance program in form satisfactory to Lessor and shall provide evidence thereof in form and substance satisfactory to Lessor. 2 10.TAXES, MAINTENANCE AND INSPECTION. The parties to this Agreement contemplate that the Equipment will be used for a governmental or proprietary purpose of Lessee and, therefore, that the Equipment will be exempt from all taxes presently assessed and levied with respect to personal property. Nevertheless, if the use, possession or acquisition of the Equipment is determined to be subject to taxation, Lessee shall pay when due all taxes and governmental charges assessed or levied against or with respect to the Equipment. Lessee agrees to use, operate and maintain the Equipment in accordance with all laws, regulations and ordinances and in accordance with the provision of any policies of insurance covering the Equipment, and shall not rent the same or permit the same to be used by anyone other than Lessee or Lessee's employees. Lessee agrees to keep the Equipment in good repair, working order and condition (ordinary wear and tear excepted) and house the same in suitable shelter, and to permit Lessor or its assigns to inspect the Equipment at any time and to otherwise protect its interests therein. If any Equipment is customarily covered by a maintenance agreement, Lessee will furnish Lessor with a maintenance agreement by a party reasonably satisfactory to Lessor. No maintenance or other service for the Equipment will be provided by Lessor. Without the prior written consent of Lessor, Lessee shall not make any alterations, modifications or attachments to the Equipment that cannot be removed without materially damaging the functional capabilities or economic value of the Equipment. In the event the Equipment is returned to Lessor, the Lessee, at its sole cost and expense, and at the request of Lessor, will remove all alterations, modifications and attachments, and repair the Equipment as necessary to return the Equipment to the condition in which it was furnished, ordinary wear and tear and permitted modifications excepted. All replacement parts shall be free and clear of liens of others, and shall become part of the Equipment and subject to the terms hereof. 11.LATE PAYMENTS AND PERFORMANCE OF LESSEE'S OBLIGATIONS BY LESSOR. If (a) any Payment other than a Lease Payment is not paid when due or (b) Lessee fails to perform any of its obligations hereunder and Lessor performs the same for the account of Lessee and incurs expenses, costs, penalties or liabilities in so doing ("Reimbursable Expenses"), Lessee shall pay interest on such Payment from the date due and, with respect to the Reimbursable Expenses, from the date incurred, in each case until paid, at the rate of eighteen (18%) percent per annum (or, if such rate is in excess of the maximum rate permitted by law, the maximum rate permitted by law). 12.DEFAULT. The following shall constitute an event of default under this Agreement, and the terms "Event of Default" and "default" shall include, whenever they are used in this Agreement, the following: (a) subject to Paragraph 4 hereof, failure by Lessee to pay any Lease Payment or any other Payment required to be paid when due and such failure continues for ten (10) days after the due date thereof, (b)Lessee fails to perform or observe any other covenant, condition, or agreement to be performed or observed by it hereunder and such failure is not cured within twenty (20) days after written notice thereof by Lessor; (c) the discovery by Lessor that any statement, representation or warranty made by Lessee in this Agreement or any writing ever delivered by Lessee pursuant hereto or in connection herewith is false, misleading, or erroneous in any material respect; (d) any determination by the United States Internal Revenue Service that the portion of the Payments constituting "interest" is includible in the gross income of Lessor for Federal income tax purposes, or (e) the filing of a petition in bankruptcy by or against Lessee, or failure of Lessee promptly to lift any execution, garnishment, or attachment of such consequences as would impair the ability of Lessee to carry on its governmental functions, or assignment by Lessee for the benefit of creditors, or the entry by Lessee into agreement of composition with creditors, or the approval by a court of competent jurisdiction of any adjustment of indebtedness of Lessee, or the dissolution or liquidation of Lessee. 13.REMEDIES. Whenever any Event of Default shall have occurred, Lessor shall have the right, at its option and without any further demand or notice,to take one or any combination of the following remedial steps: (a) Lessor, may declare all Lease Payments due or to become due during the fiscal year in which the Event of Default occurs to be immediately due and payable by Lessee; (b) Lessor may repossess any or all of the Equipment by giving Lessee written notice to deliver the Equipment to Lessor in the manner provided in Paragraph 18, or in the event Lessee fails to do so within ten (10) days after receipt of such notice, and subject to all applicable laws, Lessor may enter upon Lessee's premises where the Equipment is kept and take possession of the Equipment and charge Lessee for costs incurred in repossessing the Equipment, including reasonable attorneys' fees. Lessee hereby expressly waives any damages occasioned by such repossession. Notwithstanding the fact that Lessor has taken possession of the Equipment, Lessee shall continue to be responsible for the Lease Payments due during the fiscal year then in effect; (c) if Lessor terminates this Agreement and takes possession and disposes of the Equipment or any portion thereof, Lessor shall apply the proceeds of any such disposition to pay the following items in the following order: (i) all costs (including, but not limited to, attorneys' fees) incurred in securing possession of the Equipment; (ii) all expenses incurred in completing the disposition of the Equipment; (iii) any sales or transfer taxes; (iv) all costs and expenses incurred by Lessor to return the Equipment to the condition required by Paragraph 18 hereof; and (v) all Payments whether due or due in the future hereunder. Any disposition proceeds remaining after these disbursements have been made shall be paid to Lessee. In addition, Lessor may exercise any other right, remedy or privilege that may be available to Lessor under applicable law or, by appropriate court action at law or in equity, Lessor may enforce any of Lessee's obligations hereunder. Lessor's rights and remedies are cumulative and may be exercised concurrently or separately. No such right or remedy is exclusive of any other right or remedy permitted by this Agreement or by law or in equity. 14.NOTICES. For the purpose of this Agreement any notices required to be given, shall be given to the parties hereto in writing and by certified mail at the address herein set forth, or to such other addresses as each party may substitute by notice to the other, which notice shall be effective upon its receipt. 15. DELIVERY; TITLE. Lessee has advised Lessor of its desire to lease the Equipment, the cost of the Equipment, the expected delivery date and the desired lease terms for the Equipment. Lessee shall order such Equipment and shall cause such Equipment to be delivered pursuant to Lessee's directions. Lessor shall have no liability to Lessee, or to any other person for transportation, delivery or installation of the Equipment. Lessee shall bear the risk of loss with respect to any Equipment. Legal title to the Equipment, including, if 3 I applicable, any software license component thereof, is vested in Lessor. Upon the payment of all amounts due hereunder, legal title to the Equipment shall pass to Lessee without the necessity of further action by the parties hereto, and Lessor shall have no further interest therein. 16. MISCELLANEOUS. This Agreement may not be modified, amended, altered or changed except by a written agreement signed by both parties. In the event any provision hereof shall be invalid or unenforceable, the remaining provisions hereof shall remain in full force and effect. This Agreement, together with exhibits, constitutes the entire agreement between Lessee and Lessor and supersedes all prior and contemporaneous writings, understandings, agreements, solicitations, documents and representations, expressed or implied. Any terms and conditions of any purchase order or other documents submitted by Lessee in connection with this Agreement which are in addition to or inconsistent with the terms and conditions of this Agreement will not be binding on Lessor and will not apply to this Agreement. 17.JURY TRIAL WAIVER. THE PARTIES TO THIS AGREEMENT HEREBY UNCONDITIONALLY WAIVE, IN A KNOWING AND INTENTIONAL MANNER, THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR INDIRECTLY, THIS AGREEMENT OR RELATED DOCUMENTS, ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER HEREOF OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN THEM. 18.RETURN OF EQUIPMENT. If Lessor is entitled to obtain possession of any Equipment or if Lessee is obligated at any time to return any Equipment, then Lessee shall, at its sole expense and risk, immediately de-install, disassemble, pack, crate, insure and return the Equipment to Lessor (all in accordance with applicable industry standards) at any location in the continental United States selected by Lessor. Such Equipment shall be in the same condition as when received by Lessee (ordinary wear and tear excepted), shall be in good operating order and maintenance as required hereby, shall be free and clear of any liens (except Lessor's lien) and shall comply with all applicable laws and regulations. Until Equipment is returned as required above, all terms of this Agreement shall remain in full force and effect including,without limitation, Lessee's obligation to pay Lease Payments and to insure the Equipment. 19. OTHER DOCUMENTS. In connection with the execution of this Agreement, Lessee shall cause to be delivered to Lessor(i) an Acceptance Certificate substantially in the form attached hereto as Attachment A; (ii)a certified copy of Lessee's Authorizing Resolution substantially in the form attached hereto as Attachment B, (iii) an opinion of Lessee's counsel substantially in the form attached hereto as Attachment C, (iv)a form 8038 G or 8038 GC as required under the Code, and(v)any other documents or items required by Lessor. 20.APPLICABLE LAW. This Agreement shall be governed by and construed in accordance with the laws, excluding the laws relating to the choice of law, of the State. Lessee: Lessor: CITY OF MCCALL CATERPILLAR FINANCIAL SERVICES CORPORATION r Signatur Signature: By: �cx l�l - I� By: Print Name ( Print Name Title: r l ►alpi Title: 4 PAYMENT SCHEDULE TO GOVERNMENTAL EQUIPMENT LEASE PURCHASE AGREEMENT Dated as of / S'6 c L 2 d/3 (the"Agreement") between CATERPILLAR.FINANCIAL SERVICES CORPORATION("Lessor") and CITY OF MCCALL ("Lessee") PAYMENT SCHEDULE Payment Dates Payment Payment Amounts Numbers Due Date of the Agreement I $5,710.23 12 months after the date of 2 $5,710.23 the Agreement 24 months after the date of 3 $5,710.23 the Agreement 36 months after the date of 4 $5,710.23 the Agreement 48 months after the date of 5 $5,710.23 the Agreement 60 months after the date of 6 $182,000.00 the Agreement 5 CUSTOMER INFORMATION VERIFICATION ex( (Required Document) Financial In our efforts to continue providing timely customer service, we need your assistance confirming the following information. If any information is incorrect or missing, please note the necessary changes below and return this form with your signed documents. In addition, please review the Data Privacy Notice stated below. Thank you in advance for your cooperation. Purchase Order#for new contract: Current Information on file Please make corrections here Customer Name: CITY OF MCCALL Physical Address: 216 EAST PARK STREET MCCALL, ID 83638 r 1 Mailing Address: --13:07130X-9136" 9-' 62ti Pc( MCCALL, ID 83638 Equipment Location: 216 East Park Street MCCALL, ID 83638,VALLEY Business Phone: (208)634-3458 Fed. ID#or SS#: 82-6000223 E-mail Address: PBORNER@MCCALL.ID.US Accounts Payable Contact Name and Phone: Tax Information Sales Tax Rate: 0 (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 indicate if you are tax exempt. If you are tax exempt-please enclose a current ❑ Exempt tax exemption certificate to be returned with ❑ Non Exempt your documents-Not needed by CFSC if dealer ISC The information above has been reviewed and is accurate to the best of my knowledge with exception of any corrections as noted. "Should the above changes apply to ALL of your contracts, OR for this contract ONLY? ❑ ALL CONTRACTS ❑ THIS CONTRACT ONLY THE ABOVE INFORMATION HAS BEEN REVIEWED AND IS ACCURATE TO THE BEST OF MY KNOWLEDGE WITH EXCEPTION OF ANY CORRECTIONS AS NOTED. Customer Data Privacy Notice: This notice pertains to personal data supplied in connection with your credit application. By providing your information to Caterpillar Inc. or any of its subsidiaries or affiliates, including Caterpillar Financial Services Corporation (collectively "Caterpillar"), you are agreeing that the information may be shared among Caterpillar and its partners and dealers, and used to process your applications for credit and other orders and to improve or market Caterpillar products and services. If you have any questions pertaining to this notice,please contact the Data Privacy Coordinator at 615-341-8222. Form Na.CUVER 385662610/11/2013 9:22 AM CT IDAutorn ation com DE III CFI 76036 III I Attachment B CAT. Transaction Number 2120023 Financial GOVERNMENTAL ENTITY RESOLUTION TO LEASE, PURCHASE AND/OR FINANCE WHEREAS, the laws of the State of Idaho (the "State") authorize CITY OF MCCALL (the "Governmental Entity"), a duly organized political subdivision, municipal corporation or similar public entity of the State, to purchase, acquire and lease personal property for the benefit of the Governmental Entity and its inhabitants and to enter into any necessary contracts;and the Governmental Entity wants to lease, purchase and/or finance equipment ("Equipment") from Caterpillar Financial Services Corporation and/or an authorized Caterpillar dealer ("Caterpillar") by entering into that certain Governmental Equipment Lease-Purchase Agreement (the "Agreement")with Caterpillar;and the form of the Agreement has been presented to the governing body of the Governmental Entity at this meeting. RESOLVED,that: (i) the Agreement, including all schedules and exhibits attached to the Agreement, is approved in substantially the form presented at the meeting, with any Approved Changes(as defined below), (ii)the Governmental Entity enter into the Agreement with Caterpillar and(iii)the Agreement is adopted as a binding obligation of the Governmental Entity;and that changes may later be made to the Agreement if the changes are approved by the Governmental Entity's counsel or members of the governing body of the Governmental Entity signing the Agreement (the "Approved Changes") and that the signing of the Agreement and any related documents is conclusive evidence of the approval of the changes;and that the persons listed below,who are the incumbent officers of the Governmental Entity(the"Authorized Persons"): Name(Print or Type) Title(Print or Type) jo\nc&ar L' j e Okay oc be,and each is,authorized,directed and empowered,on behalf of the Governmental Entity,to(i)sign and deliver to Caterpillar,and its successors and assigns,the Agreement and any related documents, and (ii)take or cause to be taken all actions he/she deems necessary or advisable to acquire the Equipment,including the signing and delivery of the Agreement and related documents;and that the Secretary/Clerk of the Governmental Entity is authorized to attest to these resolutions and affix the seal of the Governmental Entity to the Agreement,these resolutions,and any related documents;and that nothing in these resolutions, the Agreement or any other document imposes a pecuniary liability or charge upon the general credit of the Governmental Entity or against its taxing power, except to the extent that the payments payable under the Agreement are special limited obligations of the Governmental Entity as provided in the Agreement;and that a breach of these resolutions,the Agreement or any related document will not impose any pecuniary liability upon the Governmental Entity or any charge upon its general credit or against its taxing power,except to the extent that the payments payable under the Agreement are special limited obligations of the Governmental Entity as provided in the Agreement;and that the authority granted by these resolutions will apply equally and with the same effect to the successors in office of the Authorized Persons;and that the undersigned's certification Q\f the Authorized Persons'signatures shall be binding on the Governmental Entity. I, DONAO., l . .&.0 \e 0._`7I of CITY OF MCCALL, certify that the resolutions above are a full,true and correct copy of resolutions of th governing body of the Governmental Entity. I also certify that the resolutions were duly and regularly passed and adopted at a meeting of the governing body of the Governmental Entity. I also certify that such meeting was duly and regularly called and held in all respects as required by law,at the Governmental Entity's office. I also certify that at such meeting,a majority of the governing body of the Governmental Entity was present and voted in favor of these resolutions. I also certify that these resolutions are still in full force and effect and have not been amended or revoked. Finally,I also certify that the signatures above are the signatures of the officers authorized to sign for the Governmental Entity as a result of these resolutions. IN WITNESS of these resolutions,the officer named below executes this document on behalf of the Governmental Entity. s Signature:( ...0---‘9 a Title: Date: 1 n i tj 3 F""n Na.GOVAUTH ]8566]6 10/11/2013 9 71 AM CT I iriatirrie iiail III E Financial Verification of Insurance Lessee: LESSOR(we): LESSEE(you): CATERPILLAR FINANCIAL SERVICES CORPORATION CITY OF MCCALL 2120 West End Avenue 216 EAST PARK STREET Nashville, TN 37203-0001 MCCALL, ID 83638 Sub'ect: Insurance Covera•e Re•uirements 1. The above-named Lessor and Lessee have entered into Governmental Equipment Lease-Purchase Agreement Transaction Number 2120023(the"Agreement").1 In accordance with the Agreement, Lessee has instructed the insurance agent named below: Company: nil_ �ar-V Jot( (.oJ+(n�Orcd-i 6,1 Address: I aO Lie.UN C.Y uL gtud . Cold , I b 6o rJ Phone No: r 2O — '45 I - Agent's Name: Mar 1 (1(l t Q to issue: a.All Risk Physical Damage Insurance on the Equipment(as defined in the Agreement)evidenced by a Certificate of Insurance and Long Form Loss Payable Clause naming the Lessor and/or its Assignee, as loss payee. The Coverage Required:the aggregate purchase price for the Equipment. b. Public Liability Insurance evidenced by a Certificate of Insurance, naming the Lessor and/or its Assignee as Additional Insured, with a minimum of$1,000,000 per occurrence is required. 2. Proof of insurance coverage will be provided to Lessor or its Assignee prior to the time the Equipment is delivered to Lessee. Model# Equipment Description Serial# VIN# Value Including Tax 1.950K Caterpillar Wheel Loader R4A02015 $257,014.00 SIGNATURES LESSEE CITY OF/ MCCALL Signature � (� I Name(print) VlCl Ci (_• k a i (Cy Ala b VOi _/ Date 1 011 C)l/3 Form no covens 385682610/11128139:22AM CT IL/Ayujt o rnat}lopn�cqo�rn DE ��i YrC11iri7Y4�.lPrJIri1 •�i i Non-Appropriation Addendum Lessee/Renter/Customer: City of McCall, Idaho Title of lease,rental or other agreement: Dated: Lessor: Caterpillar Financial Services Corporation Lease,rental or contract tt: This Non-Appropriation Addendum(this"Addendum")is made by and between the above-referenced lessee.renter or other customer("City")and the above-referenced lessor or lender("Lessor"). Introduction City and Lessor are simultaneously herewith entering into the above-referenced lease,rental,or other agreement (the"Lease"),and City and Lessor wish to modify and/or supplement the terms of the Lease.as more particularly set forth herein below This Addendum shall be effective as of the same date as the Lease(the"Effective Date") 1. Incorporation and Effect.This Addendum is hereby made a part of,and incorporated into,the Lease as though fully set forth therein. As modified or supplemented by the terms set forth herein,the provisions of the Lease shall remain in full force and effect, provided that,in the event of a conflict between any provision of this Addendum and any provision of the Lease,the provision of this Addendum shall control.In entering into this Addendum,it is the intent of City and Lessor to conform the terms and conditions of the Lease to the requirements of all applicable federal,state and local laws,rules and regulations relating to governmental entities and public finance If any term or condition of this Addendum is unenforceable or unlawful,then such provision shall be deemed null and void without invalidating the remaining provisions of the Lease. 2. Definitions,Capitalized terms herein that are not otherwise specifically defined herein shall have the same meanings as set forth in the Lease.As used in this Addendum.the following terms shall have the following-described meanings: "Goods"shall have the same meaning as the term"Equipment.""Leased Equipment.""Goods"or"Property"(or a similar term)as defined and used in the Lease 3. Non-Appropriation of Funds.City hereby represents.warrants and covenants to Lessor that.(a)City intends,subject only to the provisions of this Section 3,to remit to Lessor all sums due and to become due under the Lease for the full multi-year term thereof, (b)City's governing body has appropriated sufficient funds to pay all amounts due to Lessor during City's current fiscal period:(c)City reasonably believes that legally available funds in an amount sufficient to make all such payments for the full multi-year term can be obtained,and(d)City intends to do all things lawfully within its power to obtain and maintain funds from which all such payments to become due during the full multi-year term of the Lease.including making provision for such payments to the extent necessary in each budget or appropriation request submitted and adopted in accordance with applicable law Notwithstanding the foregoing,the decision whether or not to budget and appropriate funds is within the discretion of City's governing body.In the event City's governing body fails to appropriate sufficient funds to make all payments and pay other amounts due and to become due during City's future fiscal periods,City may,subject to the terms hereof,terminate the Lease as of the last day of the fiscal period for which appropriations were received(an "Event of Non-appropriation").City agrees to deliver notice of an Event of Non-appropriation to Lessor at least 30 days prior to the end of City's then-current fiscal period,or if an Event of Non-appropriation has not occurred by that date,promptly upon the occurrence of any such Event of Non-appropration and to return the Goods pursuant to the return requirements stated in the Lease on or before the effective date of termination.City and Lessor understand and intend that City's obligation to make payments and pay other amounts due under the Lease shall constitute a current expense and shall not in any way be construed to be a debt,obligation,or liability in contravention of any Non-Appropriation Addendum to Equipment Leases between the City of McCall and Caterpillar Financial Page 1 of 4 applicable constitutional or statutory limitations or requirements concerning City's creation of indebtedness,nor shall anything contained herein constitute a pledge of City's general tax revenues.funds or monies. 4. Additonal Representations,Warranties and Covenants of City In addition to the other representations,warranties and covenants made by City as set forth in the Lease.City hereby represents,warrants and covenants to Lessor that:(a)City has the power and authority under applicable law to enter into the Lease and this Addendum and the transactions contemplated herein and therein and to perform all of its obligations hereunder and thereunder,(b)City has duly authorized the execution and delivery of the Lease and this Addendum by appropriate official action of its governing body and has obtained such other authorizations,consents and/or approvals as are necessary to consummate the Lease and this Addendum,(c)all legal and other requirements have been met.and procedures have occurred,to render the Lease and this Addendum enforceable against City in accordance with their terms.and City has complied with such public bidding requirements as may be applicable to the Lease and this Addendum and the transactions contemplated herein and therein, (d)upon Lessor's request,City will provide Lessor with a copy of City's current finance]statements within 150 days after the end of each fiscal period,and(e)during the term of the Lease,unless and until the Lease is terminated in accordance with Section 3 above,City shall provide to Lessor,no later than 10 days prior to the end of each fiscal period,with current budgets or other proof of appropriation for the ensuing fiscal period,and such other financial information relating to City's ability to continue the Lease.as Lessor may request. 5. Indemnification.To the extent City is or may be obligated to indemnify,defend or hold Lessor harmless under the terms of the Lease,any such indemnification obligation shall arise only to the extent permitted by applicable law and shall be limited solely to sums lawfully appropriated for such purpose in accordance with Section 3 above. 6 Remedies.To the extent Lessor's remedies for a City default under the Lease include any right to accelerate amounts to become due under the Lease.such acceleration shall be limited to amounts to become due during City's then current fiscal period. In the event that City is obligated to return the Goods to Lessor,the same shall be done at City expense so long as the destination is not more than 100 miles distant from the City of McCall,Idaho,otherwise,Lessor shall pay the expense of transportation to the destination designated by Lessor. So long as the lease payment for the then current fiscal year has been paid,upon delivery of the Goods in the manner prescribed and so long as the Goods shall be in the same condition as when received by City(ordinary wear and tear excepted) and is in good operatirg order and maintenance as required in the Lease.City's obligation to Lessor shall be deemed satisfied. 7. Tax warranties. Notwithstanding anything in the Lease to the contrary.City makes no warranties regarding whether any portion of the lease payments are interest or that the interest is exempt from taxation because of City's governmental status. City will and does warrant that it is a municipal corporation organized under the laws of the state of Idaho,and will complete any IRS or other tax agency forms that Lessor directs so long as the information sought and factual representations to be made on the forms can be made accurately within the format of the forms City reserves the right to include any explanation of data that City deems necessary to avoid misrepresenting any facts on said forms. A determination that the lease payments.or any part of the lease payments,are includable in Lessor's gross income shall not constitute a default under the Lease and will not result in any increase in amounts payable under the lease. 8. Accessions and attachments Notwithstanding anything in the Lease to the contrary.any accessions or attachments made to the Goods by the City are not part of the Goods.and are not part of the Lease unless the accessions or attachments are provided by Lessor or Lessor's affiliate and are part of the description of the Goods contained in the lease,or,are bona fide replacements of original equipment integral to the Goods at the time of delivery to the City. At termination of the Lease before the Goods are returned to Lessor, City wilt remove any accessions or attachments it has affixed to the Goods and will repair any damage to the Goods occasioned by the Non-Appropriation Addendum to Equipment Leases between the City of McCall and Caterpillar Financial Page 2 of 4 removal of the same 9. Preservation of right of offset. Notwithstanding anything in the Lease to the contrary,City retains the right to offset against amounts due under the Lease any defense,claim,setoff,or counterclaim or other right.existing or future,which City may have against the Lessor 10. Insurance. Notwithstanding anything in the Lease to the contrary.Lessor shall not be City's attorney in fact in any way or for any reason including but not limited to insurance. City shall not be obligated to assign any insurance policies,titles,rights or benefits to Lessor. 11 Opinion letter by Counsel for City. The opinion letter.if any,required by Lessor from counsel for the City shall only require that counsel opine on. 1)whether the City is duly organized and legally existing as a political subdivision under the Constitution and laws of the state of Idaho,2)whether the Lease has been duly authorized,executed and delivered by the City and.subject to any applicable bankruptcy.insolvency,moratorium,or other limitations found in Idaho law,is enforceable against City in accordance with its terms;3) whether there is any litigation pending or,within counsel's best knowledge.threatened which seeks to restrain,enjoin,or in any other way challenges the authority of City to enter into the Lease or make an appropriation for payment of an annual lease payment:and 4)whether the Lease has been authorized,approved,and executed in accordance with all applicable open meeting,public records,and public bidding laws. No further opinions shall be required unless Lessor is willing to fully and adequately compensate counsel for the additional requested opinions and the liability thereby assumed. 7. Governing Law.Notwithstanding anything in the Lease to the contrary,the Lease and this Addendum shall be governed by,construed and enforced in accordance with the laws of the state of Idaho. 8 Miscellaneous.This Addendum,together with the provisions of the Lease not expressly inconsistent herewith,constitutes the entire agreement between the parties with respect to the matters addressed herein,and shall supersede all prior oral or written negotiations,understandings and commitments This Addendum may be executed in any number of counterparts,each of which shall be deemed to be an onginal,but all of which together shall be deemed to constitute one and the same agreement.A facsimile or other copy of this Addendum with facsimile or copied signatures shall have the full force and effect of the original for all purposes including the rules of evidence applicable to court proceedings. IN WITNESS WHEREOF,the Lessor and Lessee do execute this Lease Agreement the day and year first above written. LESSOR: • CITY OF McCALL,IDAHO By. ATT ��'`' Donald Bailey,Mayor BessieJo Wag City Jerk LESSEE: Caterpillar Financial Services Corporation By: Title Non-Appropriation Addendum to Equipment Leases between the City of McCall and Caterpillar Financial Page 3 of 4 STATE OF IDAHO ) : ss: County of Valley ) 15 0, ,;10 3 On this day of /^10bee ,41r2,before me,the undersigned Notary Public,in and for said State, personally appeared Donald Bailey and BessieJo Wagner.known to me to be the Mayor and City Clerk of the City of McCall,a municipal corporation of the State of Idaho,who executed the within instrument,and acknowledged to me that such city executed the same. IN WITNESS WHEREOF,I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. osentlease%•.• • (SEAL) ? ttOTARk -v 1 otary Pui is for I,aho • • Commissio s:• = S a • • • '� •ri •.•9, «..•••AtiaLtc .... �•` • OF P STATE OF : ss: County of On this day of ,2012.before me,the undersigned Notary Public.in and for said State, personally appeared and ,known to me to be the of Caterpillar Financial Services Corporation,who executed the within instrument,and acknowledged to me that such corporation executed the same. IN WITNESS WHEREOF,I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. (SEAL) Notary Public for Tennessee Commission Expires: msgW 1Work\M\McCall,City of 216841Resolutions\20121Equipment lease addendum(3)09.05.2012.doc Non-Appropriation Addendum to Equipment Leases between the City of McCall and Caterpillar Financial Page 4 of 4