LEASE AGREEMENT

TillS LEASE AGREEMENT (this " Agreement") is dated as of January _, 2012, andis between the CITY OF PALMETTO, a public

bodyof

the

StateFlorida (the "

Lessee"), BRANCHBANKING

ANDTRUST

COMPANY ("

BB&

T").E

TALS:The

Lesseehaspower

to

acquire

suchpropertyas

it

mayappropriateforcarrying

outgovernmentalandproprietary

functions, toacquiresuch

property

to

lease

agreements.

This

Agreement

providesforBB&T

tomake

availablethe

Lesseesumof00

theasdefmedbysecuringtheLessee'

sobligations

underthisAgreementinfavor

ofBB&T.

NOWfor

andconsiderationof

themutualpromises

inthisAgreement,

and

goodconsideration, theparties

agreeasfollows:INTERPRETATIONcontext

clearly

requirescapitalizedinthisandnotthisTsattorneys' prosecutingdefendinganyproceedinginconnection

withthisAgreement,

anyrequired

licenseorpermitfees,

stateand salesand

use

or

ownershiptaxes

orpropertytaxesT ispay asinspection

and

anyotheramounts

payablebytheLessee (

or

paidbyBB&

sunderthis

Agreement (interest

thatthe

ifshall

pay

thesame,

setthis AmountAdvanced"

hasthe

meaning

assigned

in

Section02.Base Payments" rentalpaymentstheLesseepursuantanfIrmof

T.

Budget Officer" means the Lessee officer from time to time charged with preparing theLessee's draft budget as initially submitted to the Governing Board for

its

BusinessDay"

meansanydayonwhich

banks

intheStateare

notbylawauthorized

orrequiredtoremain

closed.meansthedate

on

whichthis

Agreementis

firstexecutedanddelivered

bytheparties.Code"

ofasas

totheLessee'

obligationsunderthis

Agreementregulationsifinformapplysuchtoany

Codeshallbeincludeprovisionsthereto.

Equipment" hasthemeaningassigned

in

Section03, andis

generally

expectedtoincludethe

personalExhibitDefault" defined

Sectionof

Nonappropriation" meansany

failureGoverningfirstday ofany

FiscalbudgetanappropriationforRequired

Paymentsby05.meansthe Lessee's

Octoberlawfullymeans

Lessee'boardas

fromtimeofPalmetto, Florida.meanssorsuch

personatwrittencertificate

toandbehalfbythe

officerLessee'totheLessee'

behalfunderthisAgreement. NetProceeds," whenusedwithrespect

toanyamountsderived

claimsonof

insurancerequired

underthis

Agreement, condemnation

arisingoutof

thecondemnationofallorportion

of

the

Equipment, orany

amountsinlieusettlementanyofamountremainingafterdeductingfromthegross

thereofall

expenses (includingattorneys'

feesandcosts)

inthecollection

ofsuchproceeds,

andreimbursement

to

theLesseeorBB&

T

foramounts

previouslyexpendedto remedy

theevent giving

risetosuch payment

orproceeds.

Lessee and BB& T. The remainder of the Amount Advanced, $35, 146.00, will be advanced directlyto the City simultaneously with the execution of this Agreement. All

amountsondepositincludingthe

Amount

Advanced

and

alluntilFundprovidedthe

Funding03. 04.

Oblie:a)

Nothisconstruedinterpretedas

a

pledgeLessee'

and

creditthemeaningany

constitutionalthisAgreementbe construedpowerslending

Lessee'

withintheoftheconstitution.

Noconstruedpledgeorcreate

aofLessee'sother

thanProjectshall

of

b) inthisis

intendedor

theiftheare

when

ofthe

ProjectAgreement.2.sremainliablefullperformanceofitscovenantsAgreement (

Section04), includingoftheoccurrence

oforcircumstanceswhatsoever, includingany ofthea)

BB&T'

waiverofgrantedor

remedyit;Theorof

time for payment or performance of any obligation

under

thisAgreement,

whethertheLessee,

asubsequent

owner

of

the

Equipment

or

any

other

person;c) Therelease

ofor

partof

the

Equipment

orrelease

ofanypartyassumes

alloranyof

suchperformance;d) act

oromission

byT (

butthis

sectiondoes

notrelieve

BB&

T

of

anyof

itsunder

this

Agreement)

orProject

FundAgreement;e) Thesale

ofalloranypart

oftheEquipment; orf)

Anotherparty'sassumptionof

theLessee'sobligationsunder

thisAgreement.4

the best of the Lessee's knowledge after reasonable investigation, threatened with respect to (a) theLessee's organization or existence, (b) its authority to execute and deliver this Agreement or tocomply

with

thetenusofAgreement, (c) the

validityenforceabilityofthis

Agreementthetransactionscontemplated

byAgreement, (d) thetitleofficeofGoverning

Board

member

orother

officer, (

e) authorityorproceedingsrelatingtheLessee'sexecutiondeliveryofthis

Agreement,

t)

theundertakingof

transactionscontemplated

bythisAgreement.4.08.

NoDefault

orViolation. (a) Lessee

is

not

inofanyexisting

law, or

regulation

to

it, (b) isnotindefaultunderany

contract, other

order, judgment, orotherorrestrictionof

anykindtowhich

theLessee

isaparty

orby

whichitis

ortowhich

anyofits

assetsare

subject, includingthisand (c) no

eventconditionhas

undertheprovisions

instrument, including

thisAgreement, which

constitutes

which,withlapsetime,

or

both, constituteandefault

Misrepresentation. representation, covenantwarrantythis

Agreement

is

falsemisleadingin

any

materialrespect.

4.10. Environmental

Warranties

and

a) The

Lessee

warrantsrepresentstoBB&T

that, tothebestof

theLessee'sknowledge

afterthoroughinvestigation,the

Equipmentisnotnow

and

haseverbeenused

to

generate,

manufacture, refine,

transport,

treat, handle,

dispose,

transfer,

produceprocessHazardous

Materials.TheLesseecovenantsthat

theEquipmentshall

be

keptfreeof

HazardousMaterials

andshall

not

usedto

generate, refine, transport,

treat, store, handle,dispose,

transfer, orprocessMaterials,

except

inthenormalmaintenanceand

operationof

the

Equipment, thea

resultany

intentionalorunintentionalactor omission on the part of the Lesseeor any Lessee, the release of Hazardous Materials onto the Equipment or suffer the

presence of Hazardous

MaterialsontheEquipment,

except

in

connection

withmaintenanceofc) shall

and

byall

laws,

ordinances,

rulesand

regulations

withrespect

toHazardousMaterials

andshallkeep

theEquipmentclear

imposedsuchrules

If

receivesanyanygovernmental

or

anyLesseewith

regardto

HazardousMaterials

on, fromoraffecting

the

Equipment, theLesseeshall

immediatelynotifyBB&

Theshallconductcomplete

all

investigations,

studies, sampling

and

testing

andall

removaland

other

necessary upand

allHazardous

Materialson,

oraffecting

theaccordance

withall

applicablefederal,

locallaws, ordinances,rules,

regulationspolicies

and

toBB&T' s

satisfaction.

9

d) " Hazardous Materials" means any explosives, radioactive materials, hazardousmaterials, hazardous wastes, hazardous or toxic substances, or related materials, asbestos orany materials containing asbestos, or any other substance or material as defined by

any

federal,orlocal

environmental

law, ordinance, ruleorregulationComprehensive

EnvironmentalResponse,

Compensation, Liability

Actof

1980, amended (

42U.

S.C. 9601

etsea.),

theMaterials

TransportationAct,

as49

U.S.

C. 1801

et ~.), the

Resourceand

RecoveryAct,

as42

U. S.

C. 9601

etseq.),

andregulations

adoptedand

publicationspursuantthereto.e)

TotheLessee

shallindemnifYandhold

BB&T hannlessfromand

against (anyall

damages, penalties,

fines,

claims, liens,

andor

indirectresultof

anywarranty

or

representationmade

bytheLessee

in

subsections (

through (

c) above

beingfalse

oruntruein

anymaterial

requirementState

or

federal,

the

Lessee.

immediate

the

Equipment,

and

does

4.14. Financial Information. ( a) The Lessee shall send to BB& T a copy of the Lessee's

audited financial statements for each Fiscal Year within 30 days of the Lessee's acceptance

ofsuchstatements, butanyeventwithin

180ofthecompletion

ofFiscalYear.b)

Toextentpermittedbylaw, shallpermitT

or

its

agentrepresentatives

inspect

thesbooksandrecordsmakeextractstherefrom.4.TaxesandOther

Governmental

The

Lesseeshallpay,

AdditionalPayments,

thefullamountofall

taxes, and

othergovernmentalchargesmade

by

any

governmentalduringtheterm

ofAgreement.

With

to

specialassessmentsgovernmentalchargeswhichmaybelawfully

paidin

overaofyears,Lesseeshallbe

obligatedtoprovidefor

AdditionalPayments

onlyforsuch

installmentsas

arerequiredto

paidthe

Agreementterm. TheLessee

shall

notallowanyfortaxes,assessments

orchargeswith

tobecomedelinquent (

anytaxes

levieduponthe

Equipment

anyportionifpaid,

will

becomechargeonin

interest, therentalsrevenues4.

16.

Lessee'

sa) The

Lessee

shall, at

itsownexpense,

acquire,

carry

maintainbroad-

form

extendedpropertydamageinsurancewith

respecttoallEquipmentin

anamountequalto

theestimatedreplacementcost,

includinginstallationcosts, of

the

Equipment. propertydamageinsurance

shall

include

BB&T

as

apayee.

The

Lessee

shallevidenceof

suchtoBB&Tpromptly

uponinstallationof

the

Equipment. AnyNet

Proceedsof

theinsurance

required

thissubsection (

a) bepayable

asprovidedinSection

5.b) Theshall,

at

itsacquire, carryandmaintain

comprehensivegeneral

liability

insuranceanfor

personalor

deathand1,

000,000

forpropertydamage.c) The

Lesseeshallalsomaintain

workers'

compensationinsurance issued

bya

responsiblecarrierauthorized

underState

lawto

insurethe

Lesseeagainstliabilityfor

compensation

under

applicable

Stateintimed) shall

with

responsibleinsurers

such

policies

shallbe

deposited

withBB&

T, providedthat

inlieuof

suchpoliciesbe

Torthe

attesting

thatthebythis

is

infulleffect.

Priorto

theexpiration

ofanysuchpolicy,

the

LesseeshallfurnishBB&

Tevidencesatisfactory

BB&thatthehas

been

renewed

orreplaced

or

is

nolonger

bythis

Agreement.

No oremployee

havethe

powerto

orsettle

anyloss

greaterthan $

50,000

totheEquipment, whether

orcovered

by

insurance, withoutBB&T'

s

prior

writtenconsent.11

f) BB& T shall not be responsible for the sufficiency or adequacy of any requiredinsurance and shall be fully protected in accepting payment on account of such insurance or any

adjustment,

compromiseor

settlementlossagreed

toby

BB&

T.

g)

The

Lessee

shall

deliver

toBB&Tannually

by30

ofeach

year

a

certificatethat

theriskcoveragesby

thisAgreementareeffect,

andstatingthepolicy

numbers, coverage

limitsdeductible

orrisk-

retentionfor

allsuch

coverages.

ARTICLE

V

THEEQUIPMENT

5.Acquisition

and

Installation.

Theshall

complywithallprovisionsof

lawapplicabletotheacquisition

oftheEquipment, acceptall

portionsoftheEquipmentwhen

properlydelivered, provideforthe

properinstallationthereofandthereafter

promptlyplaceeachsuchportion

inservice.5.02. Chan2es

inLocation. The

Lesseeshallpromptlyinform

BB&Tif

anycomponent

oftheEquipment

shall

be

movedfromthelocationdesignated

forsuchEquipment

at

thetimeofitsacquisition.5.

03. AcquisitionandInstallationwithin

FundsAvailable. TheLessee

representsthat,

baseduponits

ofthe

plansspecificationsthe

Equipment, estimated

installationandthe

santicipated

configuration, canand

installed

a

total

price

withintotalamountof

funds

tobe

available

thereforeinbederivedfromthe

investment

thereof

andfunds

previously

identified

andforsuch

purposes. If

totalamount

availableforsuchintheFundshall

be

topaythe

entire

of

acquiringand

installingtheEquipment, Lesseepromisesto

payany

suchexcesscosts,

withno

resulting

reductionoroffset

in

the

amountsotherwisepayableLesseeAgreement.Disclaimer

agreesBB&T

hasanyplans

orspecificationswith

respect

theretoand

thatBB&T (

a) nota

manufacturerof, a

dealerin, anyofthe

partsofthe

EquipmentsimilarEquipment, (b)

has

not

madeanyrecommendation,

given

any

advicenortaken

any

other

actionwithrespect

to (

i)

thechoiceof

any

supplier,

vendorordesigner

of,

or

anyother

contractor

withtheany

component

part

thereofor

any

propertyrightsrelatingthereto,

or (ii) anyaction

takentoEquipmentorany

component

part

thereoforany

property

or

rightsrelatingthereto

at

any

stageofthe

acquisition, and

equipping

thereof, (

c) not

atany

time

physical

possession

of

theEquipmentorcomponentpartor

made

any

inspectionthereofor

of

any

property

rightswarranty orrepresentation,

expressoranypartany

propertywill

inor

injury or damage to persons or property, ( ii) has been or will be properly designed, or willaccomplish the results which the Lessee intends therefore, or (iii) is safe in anymanner

orTEXPRESS

ANYWITHTHE

COMPONENTPART

THEREOF,

INCLUDING

BUTNOTLIMITED

TOANY

WARRANTYOR

REPRESENTAWITH

RESPECTTOMERCHANTABILITY

THEFIlNESS

ORSUITABILITY

THEREOF

FOR

ANYPURPOSE, and

furtherthedesignor conditionsafety, capacitythereofrequirements

law,

orcontract

perform

anyfunction; thatthe

Amount

Advanced

willbesufficientto

pay

allcostsoftheacquisition

andinstallation

of

theEquipment; oragreedthat

Lessee

isto

thetheinstallationand

theandherebywaivesof

alland

representationsT.Theof

thissurvive

s

Ri2htEntry

andT

haveright

toandtheEquipmenttimeto

installation

thecompletioninstallation, andshall

vendor,

sub-withand

and

suchoforapprovaldeemedimposeuponcorrect

in

ortoanypersonrespectthereto,

liability

uponT, toquality

orany

such

beingsolelyfor

sbenefit.5.06. CompliancewithReauirements. (a)

The

Lessee

shall

causethe

Equipment

toinstalledina

carefulmanner

andin

compliance

with

all

applicablelegalrequirements.

b) TheLesseeobserveand

comply

promptly

allcurrentand

futurerelatingto

the

Equipment's

use

or

condition

imposedby (i) anyjudicial,

governmentalbodyoverorthereof

anywriting

a policycoveringnot

anysuch

requirement

shallnecessitate

structural

changes

orimprovements

orinterferewith

theuse

orenjoyment

of

the

Equipment.c)

TheLesseeshall

obtain

andin

effectall

operation.13

d) The Lessee shall in no event use the Equipment or any part thereof, nor allow thesame to be used, for any unlawful purpose, or suffer any act to be done

or

anyconditiontorespectEquipmentpart

tobrought thereon,

whichwhich

may, inlaw, constitute

anuisance,publicor private, orwhich

makevoid

orvoidable

anyinsurance

theninwithrespectthereto.

5.07. Useand

Operation. Lesseeshall

useand

operatethe Equipmentand relatedpropertyas

policecruisers, andfornopurpose

unlessrequired byTheshall

Equipment'soperation.5.

08. Maintenanceand

Repairs; Additions. (a) TheLessee

shallkeeptheEquipmentin

good

orderrepair (

reasonablewearandexcepted)

andin goodcondition,

shallnotcommitpermit

anywasteoranywhereby

the

usefulness

the

Equipment

might

beimpaired, andshallmaketimetotimeallnecessary

orappropriaterepairs,

replacements

andrenewals.

b)

TheLessee

may,

alsoatits

ownexpense,

makefromtime

totimeany

additions,

modificationsor

improvementstothe

Equipment

thatit

maydeemdesirableforitsgovernmental

or

proprietarypurposes

and

thatdo

not

materiallyimpair

theeffectiveuse,

normateriallydecrease

the

valueor

substantiallyalterthe

intendeduse, of

theEquipment. The

Lessee

shalldo, orcauseto

bedone, allsuchthingsas

mayberequired

bylawin

orderfullyto

protecttheinterests

ofandall

ofBB&Ts

rightsunderthis

Agreement.c) Any

andall

additions

toor

replacementsofthe

Equipmentand

allpartsthereof

shallconstitute

accessionstothe

Equipmentand

shallbesubject

to

allthe

terms

andof

thisAgreement

andincluded

the "

Equipment" thepurposes

ofthis

Agreement.d) Notwithstanding

theprovisions

ofsubsection (c) however,

Lesseemay,

fromtimeto

timeinitssolediscretionand

atownexpense, equipment

andother

tangiblepropertyinorontheEquipment.

Allsuchproperty shallremaintheLessee'

s

sole

property

inwhichBB&

T

shall

have

no

interest; provided, however,

thatanysuch propertywhichbecomes

permanently

affixedto theEquipmentshall

be

subjectto

BB&

T'sinterest

arisingunderthis

Agreementif

BB&Tshallreasonablydetermine

thatthe

Equipment

wouldbe

damaged

impaired

byremoval ofmachinery, equipment orotherproperty.5.Security. shall

take

all

reasonablesteps

necessaryto

safeguardtheEquipment

against

theft.

Thesecurityaffordedthe

Equipmentshallallequalorbetter

than

the

securityafforded

the

Lessee'

s

personal

property

that

is

not

subject

to

thisAgreement.

5.

10.

Utilities.

The

Lessee

shall

pay

all

charges

orin

connection

withthe

Equipment.14

5.11. Risk of Loss. The Lessee shall bear all risk of loss to and condemnation of theEquipment.

5.12. Condemnation.a) The Lessee shall immediately notify BB& T if any governmental authority

shall

institute, shallnotify

the

Lesseeofanyintenttoproceeding

forthe

takingor

damagesto,

allany

partof

theEquipmentany

interesttherein

underpower

ofeminent

domain, if

thereshall

bedamage

tothe

Equipmentto

governmentalaction,

butresulting

ina

takingany

portionof

theThe

Lesseeshall

fileprosecuteitsclaims

foranygood

faithandwithdue

diligenceandcausethesame

tocollectedpaid

overto

BB&

T, and

sand

prosecutesuchclaims.

Ifthe

Lessee

receivesany

NetProceedsarising

from

any

action,

theLessee

shallapply

suchNetProceeds

asprovided

b) property

acquired

or

exercise

of

Each

the

nature

and

extent

e) Any lien, charge or encumbrance affecting the validity of the Agreement, is found toexist. or proceedings are instituted against the Lessee to enforce any

lien, orencumbrance

againstthe

Equipment.f) The

Lessee'

sfailingtopay

whendueanyprincipal

oforintereston

anygeneralobligationdebt.

6.

02. Remedies

onDefault.

Uponthecontinuationof

anyEvent

of

Default, Tmay,any

furtherdemand

or

courttheLessee'sperformancecovenantstorecover

forthetheProjectrequiretopay

overbalancetheProject

beappliedoutstanding

RequiredPayments

in

any

thisandfees

andotherexpenses.

6.6.Uponan Eventof

Nonappropriation,shallpayBasePaymentsbeyond

thetheforhavebeen appropriatedfor

Agreementwhichappropriated

Baseanypenalty

towhatsoever. surrenderpossessiontheBB&itsthefIrst

ofYearNonappropriationapplies,

foraccordanceprepaidandinsured

anytheorbyBB&

InofNonappropriation, BB& Tmay, withoutanyfurtherdemand

ornotice, (a) apply

balanceinProject

Fundoutstanding

RequiredPayments

inmanner

Tmayreasonably

deemappropriate, andb) takewith

respect

to

theLesseeand

theascontemplated6.AnEventresultingterminationofthisAgreementshallnot

theLessee

ofliabilityfor

anydefaultsunder

Agreementorthe

ProjectFundAgreement

occurringto

the

EventofNonappropriation, or

of

liabilityunder

thoseprovisionsof this

Agreementand the

ProjectFundAgreement which

arestated

termination.17

6.05. Possession of Equipment. Upon the continuation of an Event of Default or theoccurrence of an Event ofNonappropriation, the Lessee shall immediately lose the right to possess,useand

enjoythe

Equipment (butmay

inpossessionofthe

Equipmenta Lesseethewillof

BB&thereupon

theLessee (shallpay

monthlyinadvancetoBB&

Tfairandvalue

theinanBB&itsreasonable

judgment),

and (b) upon

BB&T'sshalldeliverpossession

ofEquipmenttoBB&

T

or,

atBB&T'

sdirection,

toanypurchaser

ofafter

Intheany

Default

occurrenceofof

Nonappropriation, T, topennitted

i) possessionofEquipment, action, (allprofitsor

and (deducting

allcosts

ofand

administrationthe netrents

and

profitsfirsttothepaymentofnecessary

maintenanceandinsurance

costs,

and

thenLessee'andofs

Payments

fashionas

liable

toaccount

only

forrents

andprofits

itactuallyreceives.6.

06.

NoRemedvExclusive:

Delav

Waiver.

All

remedies

underAgreementcumulative

and

be

exercisedconcurrently

orThe

exerciseof

anyoneshall

notbe

deemedelection

ofsuch

remedyprecludetheexercise

ofotherremedy.

Ifanyof

Defaultshalloccurthereafter

bewaivedby

BB&T, suchwaivershall

belimitedto

thebreach

soandshallbea

waiverofanybreachunder

Agreement.6.PaymentofandAttornev'

Fees.

If

Temploysattorneytointheenforcement

orcollectionRequiredPayments,

orifBB&

voluntarilyor

shallbecome

partytosuitor

proceeding (

including

proceedingconducted

stateor

federalbankruptcyor

insolvency

statute) to

protecttoprotectthe

lienof

this Agreement, to

enforcecollectiontheRequiredPayments

orto

enforce

complianceby

theLesseewithanyoftheprovisionsof

thisAgreement,

theLesseeagrees

topay

reasonableattorneys' feesandallthethat

mayreasonablybe incurred (

notanysuitor

iscommenced),

andandcosts (together

withinterestatthePrime

Rate) be

secured

asARTICLE7.

orthisbe

Anyconununication

undershall

besufficiently

givenanddeemedgivenwhen

deliveredbyorfivedays

after

being

byfirst-classmail,

prepaid,addressedas

18

i) If to the Lessee, to 516 8th Avenue West, Palmetto, Florida 34220,Attention: Finance Director; or

ii) If to BB& T, to 5130 Parkway Plaza Boulevard,

BuildingAnydesignate

addressescommunicationsby

under

toothers.NoLessee. notassigninterestin

7.

byBB&BB&Tat

anytime,

assignor anythis

s

receive

Any

assignmentbyBB&or

anyshall

conveygreaterinterestrights

thantoAgreement.Theagrees

thatof

T'

its

noorreassignmentBB&

T'in

thisshallbeand

Lessee

ofis

madethenamefurther

agreesBB&T'

s

interestinthis

Agreement

mayassignedinwhole

orpartuponterms

which

in

effectthat

the

assignoror

assigneewill

acta

collectionand

payingagent

for

BB&T.

TheLessee

agreesto

executeany

reasonablyrequired

in

connection

with

anyassignment.

Any

assignorprovidenoticeofanytotheLessee,

andLesseeshall

keep

aand

accuraterecord

ofassignmentsas

required

byCode. After

the

givinganysuch

notice,

theshall

thereaftermake

allin

accordancewith

thetothe

assignee

namedandshall,

sorequested,

acknowledgesuchassignment

inwriting, but

suchacknowledgment

shall

no

way

be

deemednecessary

tomake

the7.

04.

Amendments.

Noor

provision

of

thisAgreement

may

amended, modified

or

waived

withoutthe

prior

writtenconsent

of

LesseeandBB&

T.

7.05. Goyernin2: Law. The

Lesseeand

BB&T

intendFlorida

Statelaw

shallgovern

this

Agreement.

PROJECT FUND AGREEMENT

THIS PROJECT FUND AGREEMENT is dated as of January _, 2012, and is by and

between the CITY OF PALMETTO, a public body of

theStateof

Florida (the "

City"), and

BRANCH

BANKING

AND

TRUSTCOMPANY ("

BB&

T").Theand

delivery

of

Project

Fundexecuting2012 (Agreement"),

theBB&purpose

Lease

toprovideT'

sof $ 381,00

to

theCity

tofinancetheof

intheLease

Agreement.

Inconsideration

for

BB&

T'entering

into

the

LeasetheCity

hasto

provide

for

financingtobedeposited

anddisbursedpursuant

tothisProject

FundNOW, THEREFORE, thepartiesagree

asfollows:SECTION

1.

DEFINITIONS

InthisProject

Fundtheterm "

Project

meansall

coststhedesign,

acquiring, installingof

theasdetermined

in

accordancewith

generallyacceptedaccounting

principles

andthatwillnot

adverselythe exclusion

fromgross

incomeforfederal

incometax

designated

interest

component

ofInstallmentPayments

payablebytheCity

theAgreement,

a)

sumsto

reimbursethe

Cityits

for

advancesmadeanysuchcosts, (b) interest

duringinstallation

process

and

forto

six

months

thereafter, c) all

coststo

the

financing

ofEquipmentthrough

theAgreementand

allrelated transactions.

Inaddition,

any

capitalizedusedin

thisProjectFundAgreement

nototherwise

defined

shall

have

the

meanings

assigned

thereto

in

the

Lease

Agreement.

SECTION

2.

PROJECT

FUND.2.

Project

Fund.

On

the

Closing

Date,

BB&

T

will

deposit $

345,

854.

00

into

a

special

account

of

the

City

at

Branch

Banking

and

Trust

Company

to

be

designated "

2012-

004

Palmetto

Project

Fund" (Fund"). shall

allofThe

thebutthe

Citywill

withdrawamountson

depositin

theProjectFund

onlyasprovidedin

thisProjectFund

Agreement

and

onlyapplicationfrom

timetotime

toofPending

subjectlienin

Tto

secure

City'

obligationsundertheLeaseAgreement.

3.4. Amendments. This Project Fund Agreement may not be modified or

amendedunlesssuch

amendment

isin

writingand

signedBB&Tand

the3.5. Third-Party

Beneficiaries. There

are

noparties

intendedorwhichshall

betothird-

party

beneficiaries

ofProject

FundAgreement.

3.Successors

andAssi2ns.

All

thecovenantsand

conditions

ofthis

ProjectFund

Agreementshall

bebindinguponandinureto

the

ofparties

to

this

Project

FundAgreement

andrespective

successorsand

assigns.7.

Severability.

If

any

of

competent

jurisdiction

shallanyprovisionof

thisFund

Agreement

invalid

orsuch

holdingshall

notor

renderunenforceable

anyprovisionof

this

ProjectAgreement.

3.8.

Counterparts. This

Project

FundAgreement

may

executedin

any

numbercounterparts, including

separatecounterparts,

executedcounterpartanoriginalalltogetheroneagreement.9. Termination. Except

otherwiseprovided

inFund

Agreement, FundAgreementshallcease

anduponpaymentfunds (

proceeds)

Fund.remainderofpageintentionally.]4

USE OF PROCEEDS CERTIFICATE

The undersigned Deputy Clerk of Finance of the City of Palmetto, Florida (the "City"), is

among the City officers charged with responsibility for

theofthe "

BankingTrustCompany ("

This

deliveredtheoffortheamanddelivering

on

theCitysetforthgood

faithconcerning

theand investmentorder

Obligations,

below,

excluded

fromincomeforincome

taxunderstand

antomakerepresentations

inAlltermsusedthis

Certificatethe

the

applicable

andpaycertaincosts.

BB&advance

Citytothethe

T

itsits

rightstheAgreementmay

makeassignmentof

payment

rightstoan

affiliate,

inatparand

withoutPROCEEDS: PAYMENTOBLIGATIONS

2. (

BB&

Twill

today

paydirectly

tothe

Cityfull

principalamount

tobe

advanced

underthe

Agreementof $

381,000.

00 (the "

bydisbursing

the

amount

of

35,146.

00

simultaneouslyclosing, andbymaking

depositof $345,

854.intoa

Project

Fundunderan

Project

Fundbetweenthe

City

andT.b)

Under

thetheCityis

obligatedpayBase

Payments,

asinthe

Agreement,

ondatesand

in

thesetforthAgreement (payBasePayments

are

to

in

this

Certificateas

the "Obligations"),

subjectas

provided

in

thec)

The

Base

Paymentsreflect

the

ofthe

Proceeds

and

includea

designated

interestcomponent

corresponding

anannualinterest

rateof1.

68%. TheCity

doesnot

expectto

prepayany

ofpriorto

the

scheduleddates.

Form 8038-0

City of Palmetto, Florida3a Name of person (other than issuer) with whom the IRS may communicate about this retum (see instructions)

Information Return for Tax-Exempt Governmental

ObligationsUnderCodee)

issueunder $use

IfAmended

Return,

check

here ~ 02

Issuer's

employeridentification

number (BN)6000403

3bTIU'

ofother

person

shown

on

3a

OMBNo.1545-0720

4andstreet (or P.ifnotstreet8th

8

orpost

of

issue381,000.00

e

uipment

leasepurchaseinstallment

financing

10a

Nameandtitleofofficer

orother

employee

oftheissuerseeinstructions)

suite

5Only)

7ofissue2012

9numberorotheron

Simpson, of

Financeeofenter

theSee

and

Education....Health

andTransportation. .

sewage16

Housing . . . .. ....policevehicles19obligationsare

RANs,

box19a ....obligationsareonly

20

areofor

check

123-Obli1213000alFinalinterest . . . . . . . . . . . .

price

issue (enterfromlinecolumn (b))

used

costs (underwriters' reasonablyreserve

or26

usedprior2728

toadvancerefundpriorissues . . . . . . .. 2829

Total (add

lines

24

through28). . . . . . . . . . . . . . . . . .

30

Nonrefundingoftheissue (

subtractline

29from

line

23

and

enteramounthere)

DescritionofBonds. Comlete

this

aniforrefundin

bonds.Enterthe

remaining

weightedaverage

maturity

of

the

bondstobecurrentlyrefunded . ~

32remainingmaturitybondsadvance

Enterdate

on whichtheEnter

thedate(

s)

therefunded

bonds

were

issued ~ (MMlDDIYYYY)

ForPaperworkReduction

ActNotice,

seeseparate

Instructions.

Cat.

No. 63n3S

1.68 %381,

000

00years

Form8038-

Form 8038- G (Rev. 9- 2011) Page 2

Miscellaneous

35 Enter the amount of the state volume cap allocated to the issue under section 141 (b)(5) . . . .

36abea

GIC) (instructions) . . . . . . . . . . . . . . . . . . . . . . . . .b

final

ofEnterofprovider ~Enterofproceedsof

that

beusedmakeloansother

governmentalissue

isloan madecheck

information:

the

the

masterobligation ~Cthe

EINissuer

pooldEntername

ofObligation ~Ifthehas

designatedb)(

exception),

40

dofhedge ~If

thesuperintegrated

box. . . . . . . . . .. ........ ~ 43Ifhas

procedures

ofunder

theandRegulations (issuer

haswrittenprocedures

to

monitortherequirements

of

sectioncheckbox. . . ~

0

458someportion

of

the

was

usedto

reimburse

expenditures, check

here ~ 0

andthe

amountof

reimbursement . . . . . . . . . ~b

Enter

thedate

theofficial

intentwas

adopted ~Signature

ConsentUnder

penalties

of

pe~

ury, I

declare

thathaveexamined

thisreturnaccompanyingschedulesand

statements, tothe

best

ofknowledgeand

belief,

theytrue, correct,

and

complete. furtherdeclare

that

ItotheIRS'

softhe

issuer'

sinformation, as

necessary

tothisreturn,

to

thethatIabove.ofissuer's

authorized

Print/

Type

preparer'

sname

IPreparer'

ss

name ~

Firm'

sDate

Karen

Simpson.

DeputyClerk

of

Typeor

print

name

andt~

le

IDeteI

Check

ifIPTIN

self-employedI

IFirm's

EIN ~r

Phoneno.

Form8038-

G (2011)

CERTIFICATE OF COVERAGECertificate Holder and Loss Payee Administrator Issue Date 1/ 4/12

BB&T GOVERNMENTAL FINANCE Florida League of Cities, Inc.5130 PARKWAY PLAZA BOULEVARD Department of Insurance and Financial ServicesCHARLOTTE NC

28217P.O.

Box

530065Florida

32853-0065COVERAGESIS

TOCERTIFYTHATAGREEMENT

BELOWHASBEENTO

THEDESIGNATEDMEMBERFORNOTWITHSTANDING

ANY

OR

OF

ANY

CONTRACT

OROTHERDOCUMENTWITHRESPECTWHICHTHISCERTIFICATEMAYBE

ISSUEDORMAYPERTAIN. THE

BY DESCRIBEDSUBJECTTHEAND

OF

AGREEMENT

COVERAGE

PROVIDEDBY:

FLORIDAMUNICIPALCOVERAGE

PERIOD: FROM

10/1/11

I

COVERAGE

PERIOD:

TO

10/

1/12

STANDARDTIMETYPEOF

COVERAGE - LIABILITYTYPE

COVERAGE -

PROPERTY

GeneralLiabilityo

Buildings

oMiscellaneousComprehensiveo

BasicFormInland

Marine PersonalInjuryoSpecial

FormoElectronicDataProcessing181

ErrorsandOmissionsLiabilityoPersonal

PropertyoBond181Supplemental

EmploymentPracticeoBasic

Form0

181Employee BenefitsProgram

AdministrationLiabilityo SpecialFormMedicalPropertyo

DeductibleN/A 181Limite

ofLIabilityoReplacementCostLiability onFilewith Other

thanprtvate000,000

EachAccident 1,LimitoDeductible

NlADeductibleStop/Schedule -

Collision - AutoN/A - MiscellaneousEquipmentis $

200,

000BodilyInjuryand/or

PropertyDamageper

person

or $300,000BodilyInjury

and/

or

Property

Damage

peroccurrence. Thesespecificlimits000 (combined

singlelimn)

per

occurrence, solelyfor

anyaclaimsbill

pursuant

10

Section

768.

28 (

5) FloridaStatutesor

liability/settlementforwhichnoclaims

billhasbeenfiled

orliabilityImposedpursuanttoFederalLaw

oractions

outsidetheState

ofFlorida

Description

of

Operatlons/Locations/VehlcleslSpeclalltllms

Re: Leaseof (

13)

Portable

Radios, (

4) Chelll"o/

etImpalas, (1)

DodgeChargerand (1)

JohnsonVT650StreetSweeper, Total Value $381 ,

000

THISOFINFORMATJON ONLYAND

CONFERSNO

RIGHTSUPONTHECERTIFICATE HOLDER. THISCERTIFICATEDOES NOTAMEND. EXTEND AFFORDEDBYTHE

AGREEMENTABOVE.DESIGNATED

MEMBERCANCELLATIONSSHOULD

ANYPART

OFTHE

ABOVE

DESCRIBED

AGREEMENT

BECANCELLED

BEFORETHEEXPIRATIONDATE

THEREOF,

THEISSUINGCOMPANYWILLENDEAVOR TO MAIL45DAYS

WRITTEN

NOTICETOTHE

CERTIFICATE HOLDERNAMEDABOVE, BUTFAILURETO

MAILSUCH

NOTICE SHALL

IMPOSENO

OBLIGATIONORLIABILITYOFANY

KINDUPONAGENTS

OR

REPRESENTATIVES

60017THSTREETWEST

Jf!

yPALMETTOFL34221AUTHORIZEDREPRESENTATIVEFMIT -

CERT (10196)