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Page 3 of4 Web: ,^"""""pvJIQr:rDQc::biIlQry,C::9rD From: Berndt, Keith [mailto:BerndtK@casscountynd,gov) Sent: Monday, January 26,20097:30 AM To: SIKICH, KEVIN Subject: FW: Cass County Lease Purchase Assignment Kevin, I didn't have your email correct. I'll try this again. From: Berndt, Keith Sent: Thursday, January 22, 2009 1:24 PM To: 'kevin_sikich@butlermachinery.com' Subject: Cass County Lease Purchase Assignment Kevin As discussed I'm writing to clarifY my understanding of the proposed Government Lease Purchase Assignment for Motor Grader Serial Number APMO 1972, If anything contained herein is not consistent with your understanding please advise me, During the 2009 Budgeting process the Cass County Commission approved my recommendation to reduce the County's Motor Grader Fleet by one machine as a cost savings measure. It was decided that one of the leased motor graders would be turned in early in January 2009. It was the County's understanding that the County had the right to terminate the agreement at any time during the course of the agreement. It was brought to my attention recently that the wording of the agreement between Caterpillar Financial Services and Cass County for unit APMO 1972 signed on April 18, 2005 by Roger Mertes of Cass County didn't contain language allowing the County to terminate the agreement as desired, In order to allow the County to turn in the unit and be released of any future obligations. Butler Machinery has proposed a Lease Purchase Assignment Agreement. Through the Lease Purchase Assignment now proposed, Butler Machinery Company would purchase the Motor Grader from Cass County and Cate'l)illar Financial Services. In doing so Butler Machinery Company would fulfill all tern1S of the Lease-Purchase agreement with Caterpillar Financial Services thereby releasing Cass County of any and all future obligations under the previous lease-purchase agreement. I'm uncomfortable that the Governmental Lease Purchase Assignment Agreement now proposed has language that: " Lessee is not way released/i'om the Go\'el'1lmental Lease-Purchase Agreement. bllt shall remain and continue.litl~v liable therein /Inti! thefiill pellormance thereofand papnent thereof.' notwithstanding any agreements. arrangements. releases. compromises or novations H'hatsoel'er which may be made by Lesser with Assignee or any other party concerning the Governmental Lease-Purchase Agreement, the Proper~v, or this Assignment." I seems to me that the wording leaves the County in a bad position. Perhaps if an agreement between 2/2/2009