Loading...
HomeMy WebLinkAboutPR 24388: MUSTANG CAT DOZER, LANDFILL DIVISION City of nrt rthu Texas www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: June 6, 2025 To: The Honorable Mayor and City Council Through: Ronald Burton, CPM, City Manager From: Flozelle C. Roberts, EIT MEng, MBA, Public Works Director!' RE: P.R.NO.24388—Approval of Lease Agreement with Mustangof Houston, Texas, for One (1) 2025 Caterpillar D8 WHA Dozer for the Public Works Landfill Division. Introduction: The City Council is requested to approve P.R.NO.24388,authorizing the City Manager to enter into a lease agreement with Mustang CAT of Houston, Texas, for a 24-month lease of one (1) 2025 Caterpillar D8 WHA dozer for use at the City's landfill operations. Background: The Public Works Landfill Division operates under a permit issued by the Texas Commission on Environmental Quality (TCEQ) to accept and manage regional commercial and household waste. To maintain a permit in good standing with TCEQ, the landfill must maintain the capability to operate properly, including using heavy equipment such as dozers to move and bury trash in accordance with state-mandated guidelines. The Division's existing Caterpillar D8T dozer has had numerous coolant and hydraulic leaks, creating a need for replacement equipment. This procurement is being requested as a pre-order to ensure the equipment is either built or scheduled for production, with an expected delivery date between September and December 2025. The lease agreement will become effective only upon delivery of the equipment. In the "Remember,we are here to serve the Citizens of Port Arthur" 444 4th Street X Port Arthur,Texas 77641-1089 X 409.983.8182 X FAX 409.983.8294 event pre-payment becomes a consideration after delivery, the lease allows for conversion to purchase at any time with a $250 transfer fee. Mustang CAT has provided a competitive lease quote through the Sourcewell Cooperative Purchasing Program, Contract No. 011723-CAT, which meets state procurement requirements and offers pricing advantages for government entities. Budget Impact: The lease agreement spans a 24-month term with monthly lease payments of $34,401.16, resulting in an annual cost of$290,880.00 and a total lease cost of$581,760.00 over the entire term. The total equipment cost under this lease-purchase option is valued at $1,038,951.57. Funding for this lease will be available through the Solid Waste Landfill Equipment Fund Account No. 403-50-320-8522-00-00-000, contingent upon City Council approval and budget appropriations in the respective fiscal years spanning 2025 through 2028. Recommendation: Staff recommend the approval of P.R. NO. 24387 authorizing the City Manager to execute the lease agreement with Mustang CAT for the 2025 Caterpillar D8 WHA dozer to support ongoing landfill operations and maintain compliance with TCEQ permit requirements. "Remember, we are here to serve the Citizens of Port Arthur" P.O. Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 PR No.24388 06/06/2025 FCR Page 1 of 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AGREEMENT WITH MUSTANG CAT OF HOUSTON, TEXAS, FOR ONE (1) 2025 CATERPILLAR D8 WHA DOZER FOR THE PUBLIC WORKS LANDFILL DIVISION, THROUGH THE SOURCEWELL COOPERATIVE PURCHASING PROGRAM AT A MONTHLY COST OF$34,401.16,RESULTING IN AN ANNUAL COST OF $290,880.00 AND A TOTAL LEASE AMOUNT OF $1,038,951.57, TO BE FUNDED THROUGH THE SOLID WASTE LANDFILL EQUIPMENT FUND ACCOUNT AND SUBSEQUENT BUDGET APPROPRIATION, ACCOUNT NO.403-50-320-8522-00-00-000,SUBJECT TO CITY COUNCIL APPROVAL AND BUDGET APPROPRIATIONS FOR FISCAL YEARS 2025 THROUGH 2028. WHEREAS, the City of Port Arthur Public Works Landfill Division maintains a permit issued by the Texas Commission on Environmental Quality(TCEQ)to accept and manage regional commercial and household waste; and, WHEREAS, to maintain a permit in good standing with TCEQ, the Landfill must have operational dozers onsite to move and bury waste in compliance with state regulations; and, WHEREAS,the Division's existing Caterpillar D8T dozer has had numerous coolant and hydraulic leaks, creating a need for replacement equipment; and, WHEREAS, Chapter 271 of the Texas Government Code allows a city, by resolution of its governing body, to participate in cooperative purchasing programs such as the TIPS Cooperative Purchasing Program as an alternative to a formal bid process; and, WHEREAS, pursuant to Resolution Number 13-556, the City entered into an interlocal agreement with the Sourcewell Cooperative Purchasing Program; and, WHEREAS,Mustang CAT of Houston,Texas,has provided a competitive quote through the Sourcewell Cooperative Purchasing Program(Contract No.011723-CAT)for a 24-month lease PR No.24388 06/06/2025 FCR Page 2 of 3 of one (1) 2025 Caterpillar D8 WHA dozer, with monthly payment of$34,401.16, resulting in an annual cost of$290,880.00 and a total lease cost of$1,038,951.57.00 over the entire term, attached hereto as Exhibit "A"; and WHEREAS, the lease term will commence upon delivery of the equipment, expected between September and December of 2025, and includes an option to prepay and convert to purchase at any time after delivery, with a $250 transfer fee; and, WHEREAS, the lease will be funded through the Solid Waste Landfill Equipment Fund, Account No. 403-50-320-8522-00-00-000, contingent upon City Council approval and budget appropriations across Fiscal Years 2025 through 2028. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: THAT, the facts and opinions in the preamble are true and correct. THAT, the City Council hereby authorizes the City Manager to execute a lease agreement with Mustang CAT of Houston, Texas, for a 24-month lease of one(1) 2025 Caterpillar D8 WHA dozer, at a monthly payment of$34,401.16 resulting in an annual cost of$290,880.00 and a total lease cost of$1,038,951.57.00 through the Sourcewell Cooperative Purchasing Program. THAT, the lease payments shall be funded through the Solid Waste Landfill Equipment Fund, Account No. 403-50-320-8522-00-00-000, subject to City Council approval and appropriation of funds for Fiscal Years 2025 through 2028. THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this the day of June, A.D. 2025 at a Regular meeting of the City of Port Arthur, Texas, by the following vote: Ayes: PR No.24388 06/06/2025 FCR Page 3 of 3 Mayor: Councilmembers: Noes: Thurman Bill Bartie Mayor Attest: Sherri Bellard, TRMC City Secretary APPROVED AS TO FORM: Roxann Pais Cotroneo, Esq. City Attorney APPROVED FO t • DMINISTRATION: drib Ronald Burton Fe e e Rob- . :IT Wig, MBA, CPM City Manager Direct. Publi rks APPR VED AS FOR AVAILABILITY OF FUNDS: I ) • „k L a Boswell, IC -CM, MA Clifton . Williams, Jr., CPPB Director of Finance, Purchasing Manager PR No. 24388 EXHIBIT A Caterpillar Financial Services Corporation Finance Proposal CUSTOMER Name:CITY OF PORT ARTHUR ATTN:FINANCE DIRECTOR,P.O.BOX Address 1089 Good if: City PORT ARTHUR Acknowledged by Jul-5-2025 State TX Funded by Jul-5-2025 DEALER MUSTANG MACHINERY COMPANY,LLC E300 Quote number 4885612 Sales person Fax Number Dealer contact Quote Date 05-Jun-25— Telephone —_ Quote Time 10:45:33 AM FINANCE PROPOSAL This is Caterpillar Financial Services Corporation's confirmation of the following finance proposal.This is a proposal only and is subject to credit approval,execution of documentation,and execution and approval of the application survey. Finance Type Governmental Lease Quoted By Philip Gile Number of Payments 24 Monthly Report Created By Austin Hise Payments in Arrears Ann. Amount Fixed Model Hours Qty Sale Price Financed Payment Balloon to New D5-17VP 2000 1 447,287.68 448,137.53 See Amort.Schedule 134,320.00 5.4900% New 938-14 750 1 284,692.87 285,633.79 See Amort.Schedule 103,280.00 5.4900% New D8-22 2500 1 1,038,951.57 1,040,925.58 See Amort.Schedule 290,880.00 5.4900% Total 3 1,770,932.12 1,774,696.90 See Amort.Schedule 528,480.00 5.4900% Special Conditions: D5-17VP Serial Number-,Model Year-2025,Industrial Environment; Major Attachments-Landfill Blade,6VPAT Blade,Air Conditioning,Cab,Steel Tracks,LGP Low Ground Pressure,Waste Handling Package; Blades/Buckets/Rippers-; Manual Configuration and Work Tools: 938-14 Serial Number-EZY02419,Model Year-2025,Industrial Environment; Major Attachments-Air Conditioning,Cab,Ride Control,Tires;Blades/Buckets/Rippers-Pallet Forks 72"with Carriage,Quick Coupler,General Purpose Bucket,Aggregate Counterweight; Manual Configuration and Work Tools: D8-22 Serial Number-,Model Year-2025,Industrial Environment; Major Attachments-Landfill Blade,Air Conditioning,Cab,Rear Counterweight,Steel Tracks,Waste Handling Package;Blades/Buckets/Rippers-; Manual Configuration and Work Tools: Payment Structure—Asset 24 Monthly payment(s)14,451.09 1 Stub payment(s)134,320.00 Payment Structure—Asset 24 Monthly payment(s)8,512.70 1 Stub payment(s)103,280.00 Payment Structure—Asset / ` 24 Monthly payment(s)34,401.16 F12(f% yo l ' .4 jt 1 Stub payment(s)290,880.00 Payment Model, Insurance w/Insurance New D5-17VP 383.42 Amort.Sch. New 938-14 244.00 Amort.Sch. New D8-22 890.55 Amort.Sch. Caterpillar Financial Services Corporation The estimate for insurance is provided through Caterpillar Insurance Company(Provided by Westchester Insurance Company in Rhode Island)and is not an offer to contract for insurance. CONDITIONS Insurance: The customer must provide evidence of physical damage and liability insurance in an amount and from an insurance carrier satisfactory to CFSC. CFSC must be named on the policies,as loss payee and additional insured,as applicable,and a certificate of insurance,in form and substance acceptable to CFSC,must be provided to CFSC. Taxes: All taxes are the responsibility of the customer and may or may not be included in the above payment amount. Equipment: The equipment cannot be delivered until all documents are executed by CFSC. All equipment must reside in the United States at all times. Approval: This proposal is subject to,among other things,final pricing,credit approval and document approval by CFSC. The terms and conditions outlined herein are not all-inclusive and are based upon information provided to date. This proposal may be withdrawn or modified by Lessor at anytime. This proposal does not represent an offer or commitment by CFSC to enter into a transaction or to provide financing and does not create any obligation for CFSC. A commitment to enter into the transaction described herein may only be extended by CFSC after this transaction has been approved by all appropriate credit and other authorities within CFSC. Caterpillar Financial Services Corporation 2120 West End Avenue,Nashville,TN 37203 (615)-341-1000 We appreciate the opportunity to provide you a proposal for this transaction. Proposed by: Acknowledged by: Caterpillar Financial Services Corporation CITY OF PORT ARTHUR Date MUSTANG111:1 New Machine Sales Agreement REF#Q-30080 MUSTANG MACHINERY COMPANY, LLC. D/B/A MUSTANG CAT, 12800 NORTHWEST FREEWAY,HOUSTON TX 77040 I PHONE:(800)256-1001 SOLD TO (CUSTOMER City Of Port Arthur Landfill SHIP TO City of Port Arthur LF STREET ADDRESS Attn:Accounts Payable 201 H.O. Mills Blvd P.O. Box 1089 CITY/STATE Port Arthur/TX Port Arthur/TX POSTAL CODE 77641 77641 COUNTY/COUNTRY PHONE NUMBER EMAIL jorge.morales@portarthurbc.gov CUSTOMER CONTACT EQUIPMENT Jorge Morales F.O.B.AT: I COPA LF PRODUCT SUPPORT INDUSTRY CODE 0920 I SHIP VIA: I I PRINCIPAL WORK CODE SALES TAX EXEMPTION CUSTOMER NUMBER: 0588741 NUMBER(IF CUSTOMER PO APPLICABLE): NUMBER: TERMS PAYMENT TERMS: 30 Days DESCRIPTION OF EQUIPMENT ORDERED/PURCHASED MAKE: Caterpillar MODEL: D8 WHA YEAR: 2025 ID NUMBER: SERIAL NUMBER: TBA SMU: WHA D8 22A TRACTOR WASTE AM-N DCA1 D8 $1,219,370.00 INCLUDES: D8 TRACTOR 525-1231 $0.00 COUNTERWEIGHT,ADDITIONAL 238-1177 $0.00 UC, HD,SUSPENDED,WASTE 379-0277 $0.00 ENGINE COOLANT,STD(-37C) 382-5934 $0.00 FINAL DRIVES, STD,WASTE 384-4604 $0.00_ NO CARRIER ROLLERS 385-4734 $0.00 BRAKES, BASIC 463-0215 $0.00 STRIKER BAR BOX, REAR 519-1271 $0.00 CONFIGURATION AR 22A LUC 523-3223 $0.00 WASTE HANDLING ARRANGEMENT 525-1208 $0.00 FILMS,ANSI 525-1216 $0.00 FLUIDS, STANDARD 525-1240 $0.00 ALTERNATOR, 150AMP DUCTED 530-3046 $0.00 GUARD, FUEL TANK 539-3164 $0.00 GRAB HANDLES, HEAVY DUTY 543-0547 $0.00 FUEL SYSTEM,STD 544-4087 $0.00 HANDRAIL, CAB 548-1353 $0.00 OIL CHANGE SYSTEM, HIGH SPEED 548-2176 $0.00 _ SEALS,WASTE HANDLING 548-6958 $0.00 ENGINE,THERMAL WRAPPED 549-3731 $0.00 GUARD,BOTTOM,POWERED,SEALED,HD 549-3735 $0.00 PRECLEANER, SCREEN HIGH DEBRIS 549-5728 _ $0.00 GUARDS-FILTER 552-5082 $0.00 HEATER, ENGINE COOLANT, 120V 552-8834 $0.00 SEAT, HEATED&VENTILATED 560-9088 $0.00 AIR CONDITIONER,QUICK DISC 569-4508 $0.00 DOZER CTL,ARO, ST, PA 581-3683 $0.00_ LIGHT, BEACON 589-3554 - $0.00 GRILL, HIGH DEBRIS 594-0465 $0.00 ASSIST W/ARO 594-3513 $0.00 JOYSTICK,ARO/GRADE, PA 608-3257 $0.00 CTWS&MSS RECEIVER, BLE 611-7487 $0.00 CAB, HIGH DEBRIS 612-0664 $0.00 FLOOR, CAB, QUICK ACCESS 621-2024 $0.00 FAN, REVERSING 621-3416 $0.00 PRECLEANER,CAB POWERED 621-6694 $0.00 LIGHTS, 12, LED 625-3192 $0.00 CONTROL AR, BASIC 626-8063 $0.00 PREMIUM CORP RADIO(12V) 627-1568 $0.00 SEALS, REAR BAFFLE 627-9608 $0.00_ TRACK,660MM ES,TRAP HD, CTWS(26") 628-0884 $0.00 GUARDS, LIGHT, PREMIUM 628-4134 $0.00 REAR CAMERA 639-5023 $0.00 HYDRAULIC, SINGLE TILT 646-8685 $0.00 L AIVC I VKUCK UV-`JUU I OU.UU PROD LINK, PL243/PLE643/PLE743 619-4080 $0.00 8SU/U DOZER, SNGL TILT,GUARD 624-3345 $25,340.00 PUSH ARMS,STD 580-1710 $16,070.00 BLADE, 8SU LNDFIL AND WR PLT,ARO 627-2894 $39,410.00 PROTECTION, CYLINDER ROD OP-3940 $0.00 WINDSHIELD WASHER EMPTY OP-1940 $0.00 FUEL ANTIFREEZE,-25C(-13F) OP-3978 $0.00 SERIALIZED TECHNICAL MEDIA KIT 421-8926 $0.00 ROLL ON-ROLL OFF OP-6655 $450.00 Total Machine List Price:$1,300,640.00 Dealer Discount: $303,799.43 Make Ready:$3,500.00 Freight:$2,500.00 Extended Warranty:$16,861.00 Install Fire Suppression System:$19,250.00 Quote Notes: Sourcewell Contract#011723-CAT TRADE-IN EQUIPMENT TERMS OF SALE MODEL: YEAR: SERIAL NUMBER: SUB TOTAL $1,038,951.5 PAYOUT TO: AMOUNT: PAID BY: HEAVYEOUIPMENTFEE I $1,974.01 MODEL: YEAR: SERIAL NUMBER: SALES TAX $0.00 PAYOUT TO: AMOUNT: PAID BY: DOC FEE $0 00 MODEL: YEAR: SERIAL NUMBER: DIESEL SURCHARGE $0.00 PAYOUT TO: AMOUNT: PAID BY: TOTAL CASH PRICE $1,040,925.5:' CASH WITH ORDER ALL TRADE-INS ARE SUBJECT TO EQUIPMENT BEING IN"AS INSPECTED CONDITION"BY MUSTANG CAT AT TIME OF DELIVERY. CUSTOMER HEREBY STATES THE ABOVE LISTED TRADE IN ALLOWANCE EQUIPMENT EMISSIONS HAVE NOT BEEN ALTERED OR CHANGED. CUSTOMER HEREBY TOTAL DOWN PMT.B TRADE IN SELLS THE TRADE-IN EQUIPMENT DESCRIBED ABOVE TO MUSTANG CAT AND WARRANTS IT ALLOWANCE UNPAID BALANCE OF TRADES TO BE FREE AND CLEAR OF ALL CLAIMS, LIENS. MORTGAGES AND SECURITY INTEREST EXCEPT AS SHOWN ABOVE. Invoice—Downpayment +Trade in Allowance PREVENTATIVE MAINTENANCE AGREEMENT TOTAL AMOUNT TO BE FINANCED EQUIPMENT WARRANTY Customer acknowledges that he has received a copy of the manufacturer's warranty and has read and understood said warranty.All used equipment is sold as is where is and no warranty is offered or implied except as specified herein. WARRANTY TERM 36 Month 6000 HoursiPowertrain+Hydraulics+TechiParts&Labor CUSTOMER INITIAL. CAT Work Tools Warranty 12 Months/Unlimited Hours IT IS MUSTANG CAT's INTENT THAT THIS AGREEMENT REFLECTS THE FULL AND FINAL TERMS OF THIS TRANSACTION.HOWEVER, DUE TO CHANGING CIRCUMSTANCES, MUSTANG CAT MAY NOT BE ABLE TO HONOR THE EXACT PRICING OR DELIVERY DATES HEREIN. EXAMPLES OF THOSE CIRCUMSTANCES INCLUDE, BUT ARE NOT LIMITED TO, LIMITED PRODUCT AVAILABILITY,EXTENDED LEAD TIMES,AND SUPPLIER PRICING CHANGES.CUSTOMER ACCEPTS AND ACKNOWLEDGES THAT IF MUSTANG CAT IS NOT ABLE TO HONOR THE TERMS OF THIS AGREEMENT,THIS AGREEMENT WILL BE VOIDED,AND BOTH PARTIES RELEASED FROM THIS AGREEMENT'S BINDING EFFECT.VOIDING OF THIS AGREEMENT DOES NOT PREVENT THE PARTIES FROM ENTERING INTO A NEW AGREEMENT, NOR IMPACT OTHER AGREEMENTS AMONG THE PARTIES HERETO. DISCLAIMER OF WARRANTIES AND WAIVER OF CLAIMS MUSTANG CAT IS NOT A MANUFACTURER OF THE EQUIPMENT.ALTHOUGH MUSTANG CAT MAY ADMINISTER WARRANTIES ISSUED BY THE MANUFACTURER,CUSTOMER ACKNOWLEDGES AND AGREES THAT:(1)ANY EXPRESS WARRANTIES BY THE MANUFACTURER FOR THE EQUIPMENT ARE NOT THE RESPONSIBILITY OF MUSTANG CAT;AND(2)THE MANUFACTURER'S WARRANTY CONTAINS LIMITATIONS AND CUSTOMER MAY INCUR CERTAIN REPAIR,TRANSPORTATION,OR OTHER CHARGES BY MUSTANG CAT WHICH ARE NOT COVERED BY THE MANUFACTURER'S WARRANTY.ANY AND ALL IMPLIED WARRANTIES ARE EXCLUDED. MUSTANG CAT, BY VIRTUE OF HAVING SOLD THE EQUIPMENT UNDER THIS AGREEMENT, HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED,AS TO CONDITION, COMPLIANCE WITH SPECIFICATIONS OR REGULATIONS, QUALITY, DURABILITY,SUITABILITY, MERCHANTABILITY, FITNESS FOR USE OR FITNESS FOR A PARTICULAR PURPOSE,OR ANY OTHER WARRANTY WHATSOEVER, EXPRESS OR IMPLIED,WITH RESPECT TO THE EQUIPMENT. MUSTANG CAT IS NOT LIABLE FOR ANY DAMAGES(WHETHER ORDINARY,SPECIAL OR PUNITIVE)ARISING FROM ANY FAILURE OF THE EQUIPMENT TO OPERATE OR THE FAULTY OPERATION OF THE EQUIPMENT,OR THE INSTALLATION, OPERATION, REPAIR OR USE OF THE EQUIPMENT. OTHER TERMS AND CONDITIONS ADDITIONAL TERMS AND CONDITIONS SET FORTH ON THE REVERSE SIDE HEREOF OR ATTACHED HERETO(AS APPLICABLE)CONSTITUTE AN IMPORTANT PART OF THIS AGREEMENT AND ARE INCORPORATED HEREIN VERBATIM FOR ALL PURPOSES. PLEASE REVIEW SUCH OTHER TERMS AND CONDITIONS BEFORE SIGNING THIS AGREEMENT. THESE TERMS AND CONDITIONS SUPERSEDE ALL OTHER TERMS AND CONDITIONS PRESENTED BY OR TO CUSTOMER UNLESS PROVIDED IN A DOCUMENT SIGNED BY AN AUTHORIZED REPRESENTATIVE OF BOTH PARTIES AND CONTAINING REFERENCE TO THIS SALES ORDER AGREEMENT. THIS AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS ATTACHED DATE DATE ORDER RECEIVED BY Jerrod Hines CUSTOMER NAME SIGNATURE CUSTOMER SIGNATURE TITLE Equipment Sales Rep TITLE I CI[11110 MNL,1.V19U1 I MAID 1. DEFINITION OF MUSTANG:MUSTANG and Seller are defined as Mustang Machinery Company, LLC.d/b/a MUSTANG CAT, Mustang Rental Services of Texas, LLC.d/b/a MUSTANG RENTAL SERVICES, and their subsidiaries, affiliates and related entities. 2.AGREEMENT:This Agreement becomes binding on MUSTANG CAT only upon MUSTANG CAT's execution of this Agreement, and subject to the availability of the equipment from the manufacturer. Customer shall inspect the equipment immediately upon its receipt, and shall be conclusively deemed to have accepted the equipment in good and operating condition unless the customer promptly notifies MUSTANG CAT of any defects, in writing and via telephone. MUSTANG CAT shall have the right,at its option,to either repair or replace the equipment, or terminate this Agreement, in which event the equipment shall be returned to MUSTANG CAT. Delays in delivery shall be excused if caused by any cause beyond the reasonable control of MUSTANG CAT. 3.TITLE TO EQUIPMENT:Title to the equipment shall pass to the customer only upon MUSTANG CAT's actual receipt of funds in the total amount of the Purchase Price and other sums due to MUSTANG CAT hereunder. 4.TAKEN IN TRADE:Customer does hereby irrevocably sell, assign,transfer and convey possession,ownership and title unto MUSTNAG CAT to the Trade-in Equipment described above. Customer warrants that it is the sole owner of the Trade-in Equipment, has full power and authority to sell the Trade-in Equipment, and that there is no lien or any encumbrance of any kind or nature against the Trade-in Equipment, of record or otherwise. 5.TAXES: Customer shall promptly pay all taxes,fees,transportation and other costs, assessments and all governmental charges of any kind or character,and any penalties,fines or interest thereon relating to the equipment. 6.CUSTOMER'S WARRANTIES AND USE: In addition to the other warranties contained herein,customer warrants that(i)if customer is an entity, it is duly organized and validly existing in good standing, and(ii)is duly authorized to execute, deliver, and perform under this Agreement. Customer further agrees and warrants, at its cost,that: (1)the equipment shall at all times be used solely for customer's business and not for personal,family,or household use,and in accordance with the use,and/or instructional materials,solely for the purpose for which it was intended; (2)only customer's employees(who must be skilled,trained and certified to do so)shall use the equipment. Customer hereby further agrees and warrants that(i)any payments made pursuant to this Agreement are intended by the customer to be a contemporaneous exchange for new value given to customer and it is a substantially contemporaneous exchange and (ii)each payment made of a debt incurred by customer under this Agreement is in the ordinary course of business or financial affairs of customer and MUSTANG CAT, and such payment was made in the ordinary course of business or financial affairs of customer and MUSTANG CAT,or made according to ordinary business terms. 7.SOLE AND EXCLUSIVE REMEDY: Customer further agrees that his SOLE AND EXCLUSIVE remedy, if any, against MUSTANG CAT,shall be as contained in any express,written warranty applicable hereto. Customer acknowledges that he has received, read, understands and accepts the terms contained herein. The customer agrees that no other remedy(including, but not limited to,claims for INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES,OR ANY CAUSE, LOSS, ACTION, CLAIM OR DAMAGE WHATSOEVER OR INJURY TO PERSON OR PROPERTY OR ANY OTHER CONSEQUENTIAL, ECONOMIC OR INCIDENTAL LOSS)shall be available to him. 8. LOSS AND DAMAGE: Customer assumes all liability and risk of,and shall be solely responsible for, all damage and loss to the equipment from any cause whatsoever,whether or not such loss or damage is or could have been covered by insurance. Until the equipment is paid in full, Customer shall promptly give MUSTANG CAT written notice of any loss or damage and reimburse MUSTANG CAT for the value of the equipment if damaged or stolen. MUSTANG CAT's sole responsibility for shipments shall be to deliver the equipment to a public carrier company. 9.SECURITY AGREEMENT: Unless the product(s)is paid for in full in cash at the time of delivery, MUSTANG CAT retains and customer hereby grants to MUSTANG CAT a security interest in such product(s)within the meaning of the Uniform Commercial Code together with all and any substitutions, additions, or accessions to such product(s), and in any and all proceeds from the sale, exchange or disposal thereof to secure payment of the purchase price of such product(s). Customer, prior to or after delivery,specifically agrees to enter into and execute a financing statement, or statements, and an additional security agreement setting forth the terms and conditions of the Agreement between the parties in relation to the security interest of MUSTANG CAT. Customer further appoints MUSTANG CAT as its attorney-in-fact to execute any such financing statement or security agreement in the place and stead of customer. In the event customer fails to execute any such financing statement or security agreement upon request by MUSTANG CAT,the entire balance of the purchase price shall be at MUSTANG CAT's option become due and payable and customer shall execute any notes or other evidences of indebtedness that may be required by MUSTANG CAT. However,any note taken herewith shall be evidence of customer's obligation to pay the unpaid time balance only and is not to be considered or construed to be payment for the product(s). 10. EVENTS OF DEFAULT:The following are events of default by Customer: (1)failure to pay any amount due hereunder or otherwise; (2)Customer's ceasing to do business, becoming insolvent,taking advantage of any law for the relief of debtors or filing bankruptcy, making an assignment for the benefit of creditors; (3) when MUSTANG CAT deems itself insecure with respect to customer's performance;(4)Customer fails to perform any of customer's other obligation hereunder or otherwise; (5)Customer's representation or warranty is false or misleading. 11.REMEDIES ON DEFAULT: In the event of any default by customer, MUSTNAG CAT is entitled to any one or more of the following remedies,without any notice of default: (a)take possession of the equipment or any other equipment, including enter premises where its located; (b)terminate this Agreement; (c)seek specific performance or injunction or recover damages; (d)stop delivery of the equipment or any other equipment; (e)surrender any insurance policies and receive the unearned premiums; (f)without terminating this Agreement, MUSTANG CAT may take possession of the equipment and sell, relet or otherwise dispose of the equipment as a secured party under UCC and deduct all expenses,costs, reasonable attorneys fees, and other charges incurred by MUSTANG CAT; (g)recover deficiency from customer; and/or(h)perform by itself, or cause performance of, customer's obligation, at customer's cost. In no event shall MUSTANG CAT be required to sell or relet the equipment, nor required to rebate or pay back any gain or profit as a result of leasing the equipment. MUSTANG CAT's remedies hereunder shall not be exclusive,but shall be cumulative and in addition to all other remedies existing at law or in equity. 12.COLLECTIONS: In the event any action either to collect payment or enforce the terms and provisions of this agreement becomes necessary, CUSTOMER agrees to pay reasonable cost of collection and attorney's fees to MUSTIANG CAT should this matter be placed in the hands of a collection agency or an attorney for collection. 13.INDEMNITY:CUSTOMER AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS MUSTANG CAT AND MUSTANG CAT's PARTNERS, EMPLOYEES,AGENTS, REPRESENATIVES,SUCCESSORS AND ASSIGNS FROM ANY AND ALL CLAIM, EXPENSE,CAUSE OF ACTION, DAMAGE, LIABILITY,COST, PENALTY,TAX,ASSESSMENT,CHARGE, PUNITIVE DAMAGE OR EXPENSE BY REASON OF ANY ACT OR OMISSION OF CUSTOMER OR ITS EMPLOYEES,AGENTS,CONTRACTORS,SUBCONTRACTORS,AFFILIATES OR INVITEES,WHILE THE EQUIPMENT IS IN THE POSSESSION OR UNDER THE CONTROL OF THE CUSTOMER OR ITS AGENTS. 14.INSURANCE COVERAGES:Customer shall maintain Equipment insurance and General Liability insurance,Auto Liability insurance,and Workers Compensation and Employer's Liability Insurance,each with minimum$1,000,000 per occurrence and shall deliver to MUSTANG CAT a Certificate of Insurance evidencing same. Such insurance obtained by customer shall be primary. 15. NOTICES:All notices hereunder shall be in writing and shall be deemed delivered if delivered personally or mailed, by certified mail, return receipt requested,to the respective addresses of the parties set forth above or any other address designated by written notice. By signing this Agreement,customer represents that it has read and agrees to the Terms and Conditions applicable to communications made by MUSTANG CAT to customer by Text or Email and which are found at https://www.mustangcat.com/legal-notices/ 16.MISCELLANEOUS:This Agreement may only be modified by a written agreement signed by MUSTANG CAT. If any provision of this Agreement is hereafter held invalid or unenforceable,the remainder of the Agreement shall not be affected and the provisions are declared severable. If there is more than one customer, the obligations of customers hereunder are joint and several. Subject to the terms hereof,this Agreement shall be binding upon and inure to the benefit of MUSTANG CAT and customer and their respective personal representatives, successors and assigns.This Agreement shall be governed by the laws of Texas, each party hereby irrevocably consents to submit to the exclusive jurisdiction of the courts of the state of Texas in Harris County,Texas. I agree and acknowledge that to the extent equipment is equipped with a telematics system(e.g., Product Link),that data concerning such equipment, including condition, and operation are being transmitted to Caterpillar Inc., and its affiliates.The full privacy statement applicable to the transfer of telematics information, including instructions on how to ask questions about telematics and how to revoke your consent, is available at: https://www.caterpillar.com/en/legal-notices/data-governance-statement.html.THE PARTIES HEREBY WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF THIS AGREEMENT OR THE SUBJECT MATTER HEREOF.