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Governmental Equipment Lease -Purchase Agreement <br />Contract Number 001-70007052 <br />CAT <br />Financial <br />1. PARTIES <br />LESSOR ("We", "us", or "our"): <br />CATERPILLAR FINANCIAL SERVICES CORPORATION <br />2120 West End Avenue <br />Nashville, TN 37203 <br />LESSEE ("you" or "your"): <br />CITY OF REDLANDS <br />35 CAJON ST. <br />REDLANDS, CA 92373-4746 <br />In reliance on your selection of the equipment described below (each a "Unit"), we have agreed to acquire and lease the Units to you, subject to the terms of <br />this Agreement. Until this Agreement has been signed by our duly authorized representative, it will constitute an offer by you to enter into this <br />Agreement with us on the terms stated herein. <br />2. DESCRIPTION OF THE UNITS <br />DESCRIPTION OF UNITS <br />Whether the Unit is new or used, the model <br />number, the manufacturer, and the model name <br />SERIALN <br />M <br />Unique ID number for this <br />Unit <br />ANNUAL. <br />LEASE PAYMENT <br />This is due per period, as <br />stated below in section 3:. <br />FINAL LEASE <br />PAYMENT <br />DELIVERY DATE <br />Enter date machine was <br />delivered to you. <br />1 New 2020 Caterpillar D7R Track Type Tractor - <br />Medium <br />SEE ATTACHMENT <br />$1.00 <br />TERMS AND CONDITIONS <br />3. Lease Payments; Current Expense You will pay us the lease <br />payments, including the final lease payment set forth above <br />(collectively, the "Lease Payments"). Lease Payments will be paid <br />by you to us according to the attached payment schedule; provided <br />that all amounts owing hereunder will be due by the final lease <br />payment date. A portion of each Lease Payment constitutes <br />interest and the balance of each Lease Payment is payment of <br />principal. The Lease Payments will be due without demand. You <br />will pay the Lease Payments to us at CATERPILLAR FINANCIAL <br />SERVICES CORP., P.O. BOX 100647, PASADENA, CA 91189- <br />0647 or such other location that we designate in writing. Your <br />obligations, including your obligation to pay the Lease Payments <br />due in any fiscal year, will constitute a current expense of yours for <br />such fiscal year and will not constitute an indebtedness of yours <br />within the meaning of the constitution and laws of the State in which <br />you are located (the "State"). Nothing in this Agreement will <br />constitute a pledge by you of any taxes or other moneys, other than <br />moneys lawfully appropriated from time to time for the payment of <br />the "Payments" (as defined in the last sentence of this Section) <br />owing under this Agreement. You agree that, except as provided <br />in Section 7, your duties and liabilities under this Agreement <br />and any associated documents are absolute and <br />unconditional. Your payment and performance obligations are <br />not subject to cancelation, reduction, or setoff for any reason. <br />You agree to settle all claims, defenses, setoffs, counterclaims <br />and other disputes you may have with the Supplier, the <br />manufacturer of the Unit, or any other third party directly with <br />the Supplier, the manufacturer or the third party, as the case <br />may be. You will not assert, allege or make any such claim, <br />defense, setoff, counterclaim or other dispute against us or <br />with respect to the payments due us under this Agreement. As <br />used in this Agreement, "Payments" will mean the Lease Payments <br />and any other amounts required to be paid by you. <br />The portion of the Lease Payments constituting principal will bear <br />interest (computed on the basis of actual days elapsed in a 360 day <br />year) at the rate of 3.50% per annum. <br />4. Late Charges If we do not receive a Payment on the date it is due, <br />you will pay to us, on demand, a late payment charge equal to the <br />lesser of five percent (5%) of such Payment or the highest charge <br />allowed by law. <br />5. Security Interest To secure your obligations under this <br />Agreement, you grant us a continuing first priority security interest in <br />each Unit (including any Additional Collateral), including all <br />attachments, accessories and optional features (whether or not <br />installed on such Units) and all substitutions, replacements, <br />additions, and accessions, and the proceeds of all the foregoing, <br />including, but not limited to, proceeds in the form of chattel paper. <br />You authorize the filing of such financing statements and will, at <br />your expense, do any act and execute, acknowledge, deliver, file, <br />register and record any document, which we deem desirable to <br />protect our security interest in each Unit and our rights and benefits <br />under this Agreement. You, at your expense, will protect and <br />defend our security interest in the Units and will keep the Units free <br />and clear of any and all claims, liens, encumbrances and legal <br />processes however and whenever arising. <br />6. Disclaimer of Warranties WE HAVE NOT MADE AND DO NOT <br />MAKE ANY WARRANTY, REPRESENTATION OR COVENANT <br />OF ANY KIND, EXPRESS OR IMPLIED, AS TO THE UNITS. AS <br />TO US, YOUR LEASE AND PURCHASE OF THE UNITS WILL BE <br />ON AN "AS IS" AND "WHERE IS" BASIS AND "WITH ALL. <br />FAULTS". Nothing in this Agreement is intended to limit, <br />waive, abridge or otherwise modify any rights, claims, or <br />causes of action that you may have against any person or <br />entity other than us. <br />7. Non -Appropriation You have an immediate need for, and expect to <br />make immediate use of, the Units. This need is not temporary or <br />expected to diminish during the term of this Agreement, To that <br />end, you agree, to the extent permitted by law, to include in your <br />budget for the current and each successive fiscal year during the <br />term of this Agreement, a sufficient amount to permit you to <br />US Governmental Equipment Lease -Purchase Agreement <br />4080554 22109/202012:15:07 PM 18e1. 676590 <br />