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Bank of America
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Lease Number |
Banc of America Leasing & Capital, LLC |
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Lease Agreement |
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01549-00400 |
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This Lease Agreement (this "Agreement") dated as of December 21, 1999 between Banc of America Leasing & Capital, LLC ("Lessor"), a
Delaware corporation having its chief executive office at 2059 Northlake
Parkway, 4th Floor, Tucker, GA 30084, and R-B Rubber Products, Inc. ("Lessee"), an Oregon corporation, having its chief executive office at 904 E. 10th Avenue, McMinnville, OR 97128.
- 1.
- Lease Agreement; Schedules. Subject to the terms and conditions hereof, Lessor shall lease to Lessee, and Lessee shall lease from Lessor, the
items of personal property (collectively with all attachments and accessories thereto, the "Units") described in one or more schedules (each, a "Schedule"; each Schedule, together with this Agreement
as it pertains thereto, a "Lease") which incorporate by reference this Agreement. Each Schedule shall constitute a separate and independent lease and contractual obligation of Lessee. Upon delivery
and acceptance by Lessee of each Unit, Lessee shall execute and deliver the Schedule relating to the Unit, with all information required on the Schedule fully completed, identifying and accepting the
Unit.
- 2.
- Term of Lease; Rentals. The lease term with respect to any Unit shall consist of an "Interim Term" (if any)
and a "Base Term" as specified in
the Schedule covering such Unit. Lessee shall pay rent for the Interim Term ("Interim Rent") and for the Base Term ("Base Rent") as specified in the applicable Schedule.
- 3.
- Net Lease; Disclaimer of Warranties. Each Lease is a net lease. All costs, expenses and other liabilities associated with the Units shall be borne solely by Lessee. Lessee's
obligation to pay rent and all other obligations under any Lease are absolute and unconditional, and not subject to any abatement, deferment, reduction, setoff, defense, counterclaim or recoupment for
any reason whatsoever. No Lease shall terminate, except as expressly provided herein, nor shall the obligations of Lessee be affected, by reason of any defect or damage to, or any destruction, loss,
theft, forfeiture, governmental requisition or obsolescence of any Unit, regardless of cause. Lessee acknowledges that Lessor is not a merchant or manufacturer, or agent of any such person, or engaged
in the sale or distribution of the Units, and has not made, and does not hereby make, any representation or warranty as to merchantability, performance, condition, fitness or suitability for Lessee's
purposes of any of the Units, or make any other representation or warranty with respect to the Units. Lessor shall not be liable to Lessee for, nor shall Lessee's obligations under any Lease be
affected by, any loss, claim, liability, cost, damage or expense of any kind caused, or alleged to be caused, directly or indirectly, by any Unit, or by any inadequacy of the Unit for any purpose, or
by any defect in, the use or maintenance of, any repairs, servicing or adjustments of, or any interruption or loss of service or use of, any Unit, or any loss of business, profits, consequential or
other damage of any nature. Lessor hereby transfers and assigns to Lessee, to the extent allowable by law, for and during the lease term of each Schedule, a
non-exclusive interest in the Unit warranties, if any, of the manufacturer, and hereby authorizes Lessee, when there exists no Event of Default, to enforce such warranties and to obtain at its own
expense the customary services furnished by the manufacturer in connection with the Units.
- 4.
- Use, Maintenance, Location.
Lessee shall use, operate, protect and maintain the Units in good operating order, repair, condition and
appearance, and in compliance with all applicable insurance policies, laws, ordinances, rules, regulations and manufacturer's recommended procedures, and shall maintain comprehensive records regarding
the Units. The Units shall be used solely for commercial or business purposes, and not for any consumer, personal, home, or family purpose, and shall not be abandoned. Lessee shall not, through
modifications, alterations or otherwise, impair the value or originally intended function of any Unit without Lessor's prior consent. Any replacement or substitution of parts, improvements, upgrades,
or additions to the Units made by Lessee shall become
1
and
remain the property of Lessor and subject to the Lease, except that if no Event of Default exists, Lessee may at its expense remove improvements or additions provided by Lessee that can be readily
removed without impairing the value and function of the Unit. If requested by Lessor, Lessee shall cause each Unit to be plainly marked to disclose Lessor's ownership, as specified by Lessor. Lessee
shall not change the location or base of any Unit specified in its Schedule without Lessor's prior consent. Lessee shall notify Lessor at least 30 days before changing the location of its chief
executive office.
- 5.
- Loss and Damage. Lessee assumes all risk of, and shall promptly notify Lessor of any occurrence of, any damage to or loss, theft,
confiscation, or destruction of (together, "Casualty") each Unit from any cause whatsoever from the date the Unit is shipped by the vendor or manufacturer or otherwise made available to Lessee
("Shipment Date"). If any Unit suffers a Casualty from the Shipment Date until the Acceptance Date, Lessee shall pay Lessor any sum required to be paid under any Progress Payment Agreement entered
into between Lessor and Lessee in relation to such Unit. If any Unit suffers a Casualty on or after its Acceptance Date, Lessee shall, if the Casualty is damage that is reparable in the judgment of
Lessor, at its own expense promptly place the same in good repair, condition or working order, and, if the Unit is lost, stolen, confiscated, destroyed or damaged beyond repair ("Total Loss"), on the
rent payment date following such occurrence (or, if none, within 30 days) pay Lessor the Stipulated Loss Value (as defined in the applicable Schedule) therefor, together with all other amounts owing
under the Lease with respect to the Unit. Upon such payment, (a) the Lease of the Unit shall terminate and Lessor thereupon shall become entitled to possession of the Unit and (b) Lessee shall become
entitled to proceeds of insurance maintained by Lessee to the extent of such payment, any excess proceeds to be retained by Lessor. If less than all Units in the applicable Schedule suffer Total Loss,
the remaining Base Rent under the Schedule shall be reduced as reasonably calculated by Lessor and notified to Lessee.
- 6.
- Insurance. Lessee, at its own expense, shall keep each Unit insured against all risks for the value of the Unit, and in no event for less
than the Stipulated Loss Value of the Unit, and shall maintain public liability insurance against such risks and for such amounts as Lessor may require. All such insurance shall be in such form and
with such companies as Lessor shall approve, shall specify Lessor and Lessee as insureds and shall provide that such insurance may not be canceled as to Lessor or altered in any way that would affect
the interest of Lessor without at least 30 days, prior written notice to Lessor (10 days' in the case of nonpayment of premium). All insurance shall be primary, without right of contribution from any
other insurance carried by Lessor, shall contain waiver of subrogation and "breach of warranty" provisions satisfactory to Lessor, shall provide that all amounts payable by reason of loss or damage to
the Units shall be payable solely to Lessor, unless Lessor otherwise agrees, and shall contain such other endorsements as Lessor may reasonably require. Lessee shall provide Lessor with evidence
satisfactory to Lessor of the required insurance upon the execution of any Schedule and promptly upon any renewal of any required policy.
- 7.
- Indemnities. (a) General Indemnity. Lessee shall indemnify, on an after-tax
basis, Lessor, its successors and assigns, and their respective officers, directors, employees, agents and affiliates ("Indemnified
Persons") against all claims, liabilities, losses and expenses whatsoever (except those directly and primarily caused by the Indemnified Person's gross negligence or willful misconduct), including
reasonable attorneys' fees and allocated costs of internal counsel (together, "Attorney Costs"), in any way relating to or arising out of this Agreement, the Units or the Leases at any time, or the
ordering, acquisition, rejection, installation, possession, maintenance, use, ownership, condition, destruction, return, or disposition of the Units, including such matters based in negligence and
strict liability in tort, environmental liability, statutory liability, or infringement.
- (b)
- General Tax Indemnity. Lessee shall pay or reimburse Lessor and its successors and assigns on demand for, and
indemnify and hold Lessor harmless from, on and after-tax basis, all taxes, assessments, fees and other governmental charges paid or required to be paid by Lessor or Lessee in any way arising out
2
of
or related to the Units or the Leases, before, during or after the lease term, including foreign, Federal, state, county and municipal fees, taxes and assessments, and property, value-added, sales,
use, gross receipts, excise, stamp and documentary taxes, and all related penalties, fines, additions to tax and interest charges (together, "Impositions"), excluding only Federal and state taxes
based on Lessor's net income unless such taxes are in lieu of any Imposition Lessee would otherwise be required to pay hereunder. Lessee shall timely pay any Imposition for which Lessee is primarily
responsible under law and any other Imposition not payable or not paid by Lessor, but Lessee shall have no obligation to pay any such Imposition that Lessee is contesting in good faith and by
appropriate legal proceedings, the nonpayment of which does not, in the opinion of Lessor, result in a material risk of adverse effect on the title, property, use, disposition or other rights of
Lessor with respect to the Units. Lessee shall furnish on Lessor's request proof of payment of any Imposition paid by Lessee.
- (c)
- Special Tax Indemnity. (i) All references to "Lessor" in this Section 7(c) shall include (A) Lessor's successors and
assigns, and (B) each member of the affiliated group of corporations, as defined in Section 1504(a) of the Internal Revenue Code of 1986, as amended (the "Code"), of which Lessor or such successor or
assign is at any time a member.
- (ii)
- Lessor
shall be treated for Federal, state and local income tax purposes as the owner of the Units and shall be entitled to take into account in
computing its income tax liabilities all items of income, deduction (including depreciation consistent with Lessee's representation in the applicable Schedule), credit, gain or loss relating to
ownership of the Units as are provided to owners of similar equipment under the Code and applicable state and local tax laws as in effect on the Acceptance Date of such Units (collectively, the "Tax
Benefits").
- (iii)
- If
(A) Lessor loses, is delayed in claiming, is required to recapture (other than in connection with a sale of the Unit following the end of the
lease term, provided Lessee is not then in default), is not allowed or does not claim as a result of a written opinion of Lessor tax counsel to the effect that Lessor's claiming of such Tax Benefits
probably would not be upheld by a court if the matter were litigated (that is, that the chances of a finding against Lessor are at least as great as the chances of a finding in favor of Lessor) all or
any portion of any Tax Benefits, under any circumstances, at any time and for any reason, or (B) Lessor is required under Section 467 of the Code or otherwise to include in its gross income with
respect to any Lease or Unit any amount at any time other than rentals and other amounts as and when accrued in accordance with the express terms of the Lease (together, "Tax Loss"), then, upon
Lessor's demand and at Lessor's option, either: (x) all further rental payments with respect to such Unit, if any, shall be increased by an amount, or (y) Lessee shall pay to Lessor a lump sum amount,
which shall in either case maintain the net economic after-tax yield, cash-flow and rate of return Lessor originally anticipated, based on an assumed combined Federal, state and local income tax rate
for Lessor of 38.2% and other assumptions originally used by Lessor in evaluating the transaction
and setting the rental therefor and the other terms thereof. Lessee shall also pay to Lessor on demand all interest, costs (including Attorney Costs), penalties and additions to tax associated with
the Tax Loss.
- (iv)
- Lessee
shall be under no obligation to make a payment under the preceding paragraph (iii) relating to a Tax Loss to the extent that the Tax Loss is
caused by Lessor's failure to have sufficient taxable income to benefit from any Tax Benefits. Lessor shall have no obligation to contest any Tax Loss.
- 8.
- Return; Extensions; Purchases. (a) Upon any termination or expiration of the lease term with respect to any Unit, Lessee shall, at its own
expense, prepare and adequately protect the Unit for shipment and either surrender it to Lessor in place or, if instructed by Lessor, ship the Unit to Lessor, freight and insurance pre-paid, at a
place reasonably designated by Lessor, in the condition required under
3
Section
4 hereof and under the applicable Schedule, and able to be put into immediate service and to perform at manufacturer's rated levels (if any), together with all related manuals, documents and
records. If Lessee does not so surrender or return a Unit to Lessor, in addition to all other rights and remedies available, at Lessor's election, such Unit shall continue to be subject to all the
terms and conditions of the Lease, with rent and other charges continuing to accrue and be payable under the Lease with respect to such Unit until it is so surrendered or returned to Lessor, except
that Base Rent shall accrue, payable on demand, at the rate of 150% of the rate applicable in the last period for which Base Rent was payable.
- (b)
- Except
as set forth in the applicable Schedule, Lessee has no right to extend any Lease or purchase any Unit.
- 9.
- Lessee Representations and
Agreements. Lessee represents, warrants and agrees as follows:
- (a)
- Lessee
has duly authorized the execution, delivery and performance of this Agreement, each Schedule and all other documents contemplated hereby, which are, or upon signing, will be,
binding on Lessee and do not and will not contravene any other instrument or agreement to which Lessee is party.
- (b)
- On
the basis of a comprehensive review and assessment of Lessee's systems and equipment and inquiry made of Lessee's material suppliers, vendors and customers, Lessee's management
is of the view that the "Year 2000 problem" (that is, the inability of computers, as well as embedded microchips in non-computing devices, to perform properly date-sensitive functions with respect to
certain dates before and after December 31, 1999), including costs of remediation, will not result in a Material Adverse Change as to Lessee or any Guarantor. Lessee and each Guarantor have
developed feasible contingency plans adequately to ensure uninterrupted and unimpaired business operation in the event of failure of their own or a third party's systems or equipment due to the Year
2000 problem, including those of vendors, customers and suppliers, as well as a general failure of or interruption in their communications and delivery infrastructure.
- 10.
- Personal Property. The Units shall remain personal property at all times, notwithstanding the manner in which they may be attached or affixed
to realty, and title shall at all times continue in Lessor. Lessee shall obtain and record such instruments and take such steps as may be necessary (a) to prevent any person from acquiring any right
or lien in or any Unit, whether by reason of such Unit being deemed to be attached to real or other property, or otherwise, and (b) to ensure Lessor's right of access to and removal of the Unit, in
accordance with the Lease.
- 11.
- Default and Remedies. (a) Each of the following is an "Event of Default" hereunder and
under any and all Leases then in effect: (1) Lessee
fails to pay when due any installment of rent or other sum
owing by Lessee under any Lease; (2) Lessee fails to maintain insurance in respect of any Unit as required herein, or sells, leases, subleases, assigns, conveys, encumbers, or suffers to exist any
lien or charge against, any Unit without Lessor's prior consent, or any Unit is subject to levy, seizure or attachment; (3) Lessee fails to perform and comply with any other covenant or obligation
under any Lease, or any progress payment, assignment, security or other agreement related to any Lease or Unit (together, "Related Agreements") and, if curable, such failure continues for 30 days
after written notice thereof by Lessor to Lessee; (4) any representation, warranty or other written statement made to Lessor in connection with this Agreement, any Lease, Related Agreement, or any
guaranty, by Lessee or any person providing such guaranty ("Guarantor"), including financial statements, proves to have been incorrect in any material respect when made; (5) Lessee (x) enters into any
merger or consolidation with, or sells or transfers all, substantially all or any substantial portion of its assets to, or enters into any partnership or joint venture other than in the ordinary
course of business with, any entity, (y) dissolves, liquidates or ceases or suspends the conduct of business, or ceases to maintain its existence, or (z) enters into or suffers any transaction or
series of transactions as a result of which Lessee is directly or indirectly controlled by persons or entities not affiliates of Lessee as of the date of this Agreement; (6) Lessee undertakes any
general assignment for the benefit of creditors or commences
4
any
voluntary case or proceeding for relief under the Bankruptcy Code, or any other law for the relief of debtors, or takes any action to authorize or implement any of the foregoing; (7) the filing of
any petition or application against Lessee under any law for the relief of debtors, including proceedings under the Bankruptcy Code, or for the subjection of property of Lessee to the control of any
court, receiver or agency for the benefit of creditors if such petition or application is consented to by Lessee or not dismissed within 60 days from the date of filing; (8) any payment default or
other event of default occurs under any other bilateral or multi-lateral lease, or credit, or other agreement or instrument to which Lessee and Lessor or any affiliate of Lessor are now or hereafter
party; (9) any payment default or other event of default occurs under any other lease, or credit, or other agreement or instrument or any combination thereof to which Lessee is now or hereafter party
and under which there is outstanding (on a present value basis for all future rent, in the case of leases), owing or committed an aggregate amount greater than $100,000.00; (10) the repudiation of or
breach or default under any guaranty relating to any Lease; or (11) the occurrence of any event described in clauses (5), (6), (7), (8) or (9) of this Section with reference to "any Guarantor" in lieu
of "Lessee", or any Guarantor dies.
- (b)
- Upon
the occurrence of an Event of Default and in addition to all other rights and remedies provided herein or under law, all of which rights and remedies are cumulative and not
exclusive, Lessor may: (i) proceed by appropriate court action or actions, either at law or in equity, to enforce performance by Lessee of the applicable covenants under any or all Leases, or (ii)
terminate any and all Leases, repossess the Units, and recover direct, incidental, consequential and other damages for the breach thereof and, at its election, dispose of the Units by lease, sale or
otherwise, and pursue any and all other remedies provided upon breach of personal property leases under the Uniform Commercial Code of the state specified in Section 16(k) of this Agreement (whether
or not otherwise applicable) or as provided by other applicable law. Lessor may recover from Lessee all Attorney Costs incurred by Lessor in connection with any enforcement or attempted enforcement of
any Lease. To determine any present value quantity for purposes of this Section, the applicable discount rate shall be the then-current bond-equivalent yield per annum for United States Government
Treasury obligations of maturity corresponding to the weighted average life, rounded to the second decimal place, of the discounted payment stream (or, if no maturity exactly corresponds to such
rounded weighted average life, the discount rate shall be interpolated from the yields of the two most closely corresponding published maturities). In the alternative, at its election, Lessor may
enforce as liquidated damages and
not as a penalty, payment of an amount equal to all accrued and unpaid rent plus the Stipulated Loss Value of any and all Units.
- (c)
- The
exercise or partial exercise of, or failure to exercise, any remedy shall not restrict Lessor from further exercise of that remedy or any other remedy otherwise available. To
the extent permitted by applicable law, Lessee waives any right to require Lessor to sell, release or otherwise use or dispose of any Units or otherwise mitigate Lessor's damages, or that may
otherwise limit or modify any of Lessor's rights or remedies.
- 12.
- Assignment, Etc. (a) Lessor (and any subsequent
assignee) may assign or transfer any or all of Lessor's interest in any Lease, Unit or the
rentals therefrom without notice to Lessee. Lessee agrees that the rights of any assignee shall not be affected by any breach or default of Lessor or of any prior assignee. Lessee further agrees that
(i) no such assignee shall be required to assume any of the obligations of Lessor under any Lease except the obligation in respect of the application of any insurance monies received by such assignee
as provided above, and the obligation of non-interference as provided below, and (ii) any assignee expressly assuming the obligations of Lessor shall thereupon be responsible for Lessor's duties under
the applicable Lease accruing after any such assignment and Lessor shall be released from such duties. Lessor may disclose to any potential or actual assignee or transferee any information regarding
Lessee, any Guarantor and their affiliates.
5
- (b)
- Lessee shall not assign, pledge, hypothecate or in any way dispose of all or any part of its rights or obligations under any Lease, or enter into any sublease of any Unit, without
Lessor's prior consent.
- 13.
- Financial and Other Data. (a) During the term of any Lease, Lessee shall (i) maintain
books and records in accordance with generally accepted
accounting principles ("GAAP") and prudent business practice, (ii) promptly and in no event later then 120 days after each fiscal year end furnish Lessor annual audited financial statements of Lessee
and audited balance sheet and notes to the financial statement of any Guarantor, both prepared in accordance with GAAP consistently applied, together with an unqualified opinion of an independent
auditor, and (iii) at Lessor's request, furnish Lessor all other financial information and reports reasonably requested by Lessor at any time, including quarterly or other interim financial statements
of Lessee and interim balance sheets of any Guarantor. Lessee shall furnish such other information as Lessor may reasonably request at any time concerning Lessee, any Guarantor and their respective
affairs, or any Unit. Lessee shall promptly notify Lessor of any Event of Default or event or circumstance which, with notice, lapse of time or both would be an Event of Default.
- (b)
- Lessee
represents and warrants that all information furnished and to be furnished by Lessee or any Guarantor to Lessor is accurate, and that all financial statements Lessee or any
Guarantor has furnished and hereafter may furnish to Lessor reasonably reflect and will reflect, as of their respective dates, results of the operations and the financial condition of Lessee, such
Guarantor or any other entity they purport to cover.
- (c)
- Credit
and other information regarding Lessee, any Guarantor or their affiliates may be shared by Lessor with its affiliates and agents.
- 14.
- Inspection;
Non-Interference. (a) Lessor, its agents and employees shall have the right to enter any property where any Unit is located and
inspect any Unit, together with its related books and records, at any reasonable time. Such right shall not impose any obligation on Lessor.
- (b)
- So
long as no Event of Default exists, Lessor shall not and each direct or indirect assignee or transferee of Lessor agrees that it shall not, interfere with the rights of use and
enjoyment of the Units by Lessee.
- 15.
- Other Charges; Application. If Lessee fails to pay within ten days of the date
due any amount of regularly scheduled Interim Rent or Base
Rent, Lessee shall pay a late charge equal to five percent (5%) of the amount not timely paid. Lessee shall pay interest at the per annum rate equal to the lesser of (a) 15% or (b) the highest rate
permitted by applicable law ("Default Rate") on (i) any sum other than regularly scheduled Interim Rent and Base Rent owing under any Lease and not paid when due, and (ii) any amount required to be
paid upon termination of any Lease under Section 11 hereof. Payments received under any Lease will be applied, first, to interest, fees and other amounts owing, other than Interim Rent or Base Rent,
then to Interim Rent or Base Rent, in order of Acceptance Date.
- 16.
- Miscellaneous. (a) Each Lease is and is intended to
be a lease of personal property for commercial and federal income tax purposes, and
Lessee does not acquire any right, title or interest in or to the Units, except the right to use the same under the conditions of the applicable Lease. Lessee waives any right to assert any lien or
security interest on the Units in Lessee's possession or control for any reason.
- (b)
- Lessee's
indemnity and reimbursement obligations, including under Section 7, shall survive the termination or cancellation of any Lease or this Agreement.
- (c)
- At
Lessor's request, Lessee shall execute, deliver, file, and record such financing statements and other documents, agreements and instruments as Lessor shall deem necessary or
advisable to protect Lessor's interest in the Units and to effectuate the purposes of any Lease and the Related
6
Agreements.
Lessee hereby irrevocably appoints Lessor as Lessee's agent and attorney-in-fact for Lessee, coupled with an interest, (i) to execute, deliver, file, or record any such item, and to take
such action for Lessee and in Lessee's name, place and stead, and (ii) to enforce claims relating to the Units against insurers, vendors, and other persons, and to make, adjust, compromise, settle and
receive payment under such claims; without any obligation to do so.
- (d)
- Time
is of the essence.
- (e)
- The
invalidity of any portion of this Agreement, any Schedule or Related Agreement shall not affect the force and effect of the remaining valid portions thereof. The term
"including" is not limiting. The term "affiliate" includes any entity controlling, controlled by or under common control with the referent entity; "control" includes the ownership of 25% or more of
the voting stock of any entity. The term "guaranty" includes any guaranty, surety instrument, indemnity, "keep-well" agreement or other instrument or arrangement providing third party credit support
to Lessor relating to any Lease or Unit.
- (f)
- This
Agreement, the Schedules, the commitment letter by Lessor dated November 19, 1999 in relation hereto and any replacement or successor letter thereto (together, the
"Commitment Letter") and the Related Agreements, constitute the entire agreement between the parties with respect to the leasing of the Units. Any amendment to such documents must be made in writing
and signed by the parties hereto or thereto. Such documents may be executed in one or more counterparts. Where multiple counterpart originals of any Schedule exist, only the counterpart marked
"Lessor's Copy" shall be deemed chattel paper and evidence a monetary obligation of Lessee.
- (g)
- All
demands, notices, requests, consents, waivers and other communications under this Agreement, any Lease, the Proposal Letter or any Related Agreement shall be in writing and
shall be deemed to have been duly given when personally delivered or three business days after being deposited in the mail, first class postage prepaid, or the business day after delivery to an
express carrier, charges prepaid, or when sent by facsimile transmission (with electronic confirmation of receipt), addressed to each party at the address or fax number set forth below the signature
of such party on the signature page, or at such other address or fax number as may hereafter be furnished in writing by such party to the other.
- (h)
- (i)To
secure the payment and performance of its obligations under the Lease relating to such Unit and the repayment of any advances, with interest and fees, made by Lessor on
account of the Unit, and (ii) as a separate grant of security, to secure the payment and performance of its obligations under all other Leases and all other lease, loan or other obligations owing by
Lessee to Lessor, in each case, now existing or hereafter arising, Lessee hereby grants to Lessor a security interest in all of Lessee's right, title and interest in and to each Unit, together with
(A) all attachments, accessories and accessions to, substitutions and replacements for, and products of, the Unit, (B) all rights to chattel paper arising from the Unit, (C) all insurance, warranty
and other claims against third parties with respect to the Unit (including claims for rent upon any lease of the Unit), (D) all software and other intellectual property rights used or useful in
connection therewith, (E) all proceeds of any of the foregoing, including insurance proceeds, and (F) all books and records regarding the foregoing, in each case, now existing or hereafter arising.
- (i)
- To
the extent permitted by applicable law, this is a "finance lease" under the Article of the Uniform Commercial Code governing personal property leases. Lessee waives any right
(i) to cancel or repudiate any Lease, (ii) to reject or revoke acceptance of any Unit, and (iii) to recover from Lessor any general or consequential damages, for any reason whatsoever.
- (j)
- To
the extent specified in any Proposal Letter, Lessee shall reimburse Lessor upon demand for costs and expenses incurred by Lessor in connection with the execution and delivery of
this Agreement and the other documents contemplated hereby. Lessee shall reimburse Lessor on demand for all costs and
7
expenses,
including Attorney Costs, incurred in connection with any amendment of any Lease or related document requested by Lessee, or any waiver.
- (k)
- This Agreement, each Schedule and (unless otherwise specified therein) the Related Agreements shall be governed by and construed according to the internal laws of the State of
California, to the non-exclusive jurisdiction of the courts of which, and the Federal courts located therein, the parties hereto submit.
- (l)
- Lessor and Lessee each waive trial by jury in any action, proceeding or counterclaim brought by either against the other on any matter however arising out of or in any
way
connected with any lease or the Units.
In Witness Whereof, Lessor and Lessee have executed this Agreement as of the date first above written.
BANC OF AMERICA LEASING & CAPITAL, LLC |
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R-B RUBBER PRODUCTS, INC. |
(Lessor) |
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(Lessee) |
By:
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By: /s/ PAUL C. SIMONS
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Printed Name:
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Printed Name: Paul C. Simons
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Title: Vice President
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Title: Treasurer
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Address:
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Address: 904 E. 10th Ave.
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McMinnville, OR |
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97128 |
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Facsimile: |
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Facsimile: 314-432-3210 |
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8
Bank of America
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Schedule to |
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Schedule |
Banc of America Leasing & Capital, LLC |
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Lease Agreement |
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Number 001 |
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This Schedule ("Schedule"), dated as of December 21, 1999 between Banc of America
Leasing & Capital, LLC ("Lessor") and R-B Rubber Products, Inc. ("Lessee") is executed pursuant to Lease Agreement Number 01549-00400 dated December 21, 1999
incorporated in this Schedule by this reference (the "Lease Agreement"). Unless otherwise defined in this Schedule, capitalized terms used in this Schedule have the respective meanings assigned to
such terms in the Lease Agreement. If any provision of this Schedule conflicts with any provision of the Lease Agreement, the provisions contained in this Schedule shall prevail. Lessee hereby
authorizes Lessor to insert the serial numbers and other identification data of the Units, dates, and other omitted factual matters or descriptions in this Schedule.
- 1.
- Description of Units. The Units subject to this Schedule ("Units"), which have a cost to Lessor ("Lessor's Cost") in the aggregate of
$218,045.72, inclusive of taxes, shipping, installation and other related expenses, if any ("Soft Costs"), are as follows:
Quantity
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Description
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Serial Number
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Lessor's Cost
(Including Soft Costs)
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See Exhibit "A" attached hereto and made a part hereof.
- 2.
- Acceptance. Lessee acknowledges and represents that the Units (a) have been delivered to, received and inspected by Lessee, (b) are in good
operating order, repair, condition and appearance, (c) are of the manufacture, design and capacity selected by Lessee and are suitable for the purposes for which the Units are leased, and are
acceptable and satisfactory to Lessee, (d) do not require any additions or modifications to make them suitable for use, other than ancillary modifications or additions normally made by lessees of
similar assets, and are available for use and lease by Lessee and Lessor, and (e) have been irrevocably accepted as "Units" leased by Lessee under this Schedule as of the date written below (the
"Acceptance Date").
- 3.
- Term. The term of the Lease for the Units is for an "Interim Term" (if any) beginning on the
Acceptance Date, and continuing through and
including the day preceding the Base Date; and for a "Base Term" of Eighty-Four (84) months, beginning on the 5th day of the calendar month following the Acceptance Date (the "Base Date").
- 4.
- Rental. Interim Rent shall be due Lessor for each day in the Interim Term and shall equal the daily equivalent of the initial Base Rent.
Interim Rent shall be payable on the Base Date. Base Rent shall be payable in arrears in Eighty-Four (84) consecutive monthly rental installments of $1,489.43 each, the first Base Rent installment
being payable on the thirtieth (30th) day following the Base Date and the remaining Base Rent installments being payable on same day of each succeeding month.
- 5.
- Stipulated Loss Value. After Lessor's receipt of notice of the occurrence of any Total Loss or other relevant event relating to any Unit,
Lessor shall calculate the Stipulated Loss Value for such Unit and give Lessee notice thereof. Such "Stipulated Loss Value", as of any particular date, shall be the product obtained by multiplying the
Lessor's Cost for the Unit in question by the percentage, as set forth in the "Schedule of Stipulated Loss Values" attached as Annex I, specified
opposite the rent installment number (or date) becoming due immediately after the date Lessee gives or is required to give Lessor notice requiring payment of the Stipulated Loss Value. If only a
portion of the Units is affected by any event causing calculation of Stipulated Loss Value, and the cost of such portion cannot
1
be
readily determined from the Lessor's Cost set forth above, then the Lessor's Cost for such portion shall be Pro-Rated by Lessor, and notified to Lessee.
- 6.
- Tax Matters. Lessee represents, warrants and agrees that (a) the Units qualify under asset guideline class 30.100 and constitute "7-year
property" within the meaning of Section 168 of the Code; (b) the Lessor is the owner of the Units and is entitled to annual accelerated cost recovery deductions for each Unit as provided by Section
168(a) of the Code; (c) the Lessee and all direct or indirect assignees and sublessees of Lessee shall treat this Lease as a "true lease" for income tax purposes and will not claim any depreciation or
other tax attributes associated with ownership of the Units; and (d) in any taxable year of Lessor, no deductions or losses arising from this Lease will arise from sources without the United States
under Section 863 of the Code.
- 7.
- Location of Units. The Units will be located or, in the case of mobile equipment,
principally based at 904 E. 10th Avenue,
McMinnville, OR 97128.
- 8.
- Further Representations and Agreements. Lessee represents, warrants and agrees as follows:
- (a)
- All
representations and warranties of Lessee contained in the Lease Agreement are restated as of the Acceptance Date and are true and correct as of such date.
- (b)
- There
has been no material adverse change in the operations, business, properties or condition (financial or otherwise) ("Material Adverse Change") of Lessee or any Guarantor since
April 30, 1999. There is not pending against Lessee any litigation, proceeding, dispute or claim that may result in a Material Adverse Change as to Lessee that may call into question or impair
Lessee's legal or other ability to enter into and perform its obligations under this Lease.
- (c)
- The
operation and maintenance of any Unit in the ordinary course by Lessee do not require the entry into any software or other intellectual property rights agreement with any
licensor or other person, except as disclosed to Lessor in writing prior to the Acceptance Date.
- 9.
- Miscellaneous
- (a)
- Early Buy-Out. If no Event of Default exists, Lessee may purchase all, but not less than all, Units subject to this Schedule at
the end of
the 72nd scheduled Base Rent installment date of the Base Term of each such Unit (the "Early Buy-Out Date"), by notice to Lessor not less than 90 days prior to the Early Buy-Out Date. On the Early
Buy-Out Date, Lessee shall pay to Lessor the Base Rent installment
due, together with all other amounts then owing, plus an amount equal to $67,158.08, plus applicable taxes. Upon such payment the obligation of Lessee to pay rent hereunder with respect to the Units
after the Early Buy-Out Date shall cease, the Lease term for the Units shall end on the respective Early Buy-Out Date, and Lessor shall execute and deliver to Lessee a quitclaim bill of sale for the
Units.
- (b)
- Extension; Purchase. In lieu of Lessee's obligation to return the Units to Lessor upon expiration of the
Base Term, Lessee may, if no Event
of Default exists, and upon Lessee having provided to Lessor notice not less than 90 days prior to such expiration, irrevocably elect to:
- (i)
- extend
the Base Term as to all and not less than all of the Units under this Schedule for a period to be agreed upon by Lessee and Lessor for an
amount equal to the Units' then fair market rental value as determined by Lessor. The fair market rental value shall be payable monthly by Lessee to Lessor on the first day of each month during the
extension term; or
- (ii)
- purchase
all of Lessor's right, title and interest in and to all, but not less than all, of the Units under this Schedule on an "as-is, where-is"
quitclaim basis, for a purchase price equal to the then Fair Market Value of the Units. "Fair Market Value" shall mean an amount equal to the value of the Units that would be received in an
arm's-length transaction between an informed and willing buyer/user and an informed and willing seller under no compulsion to sell, as determined by
2
mutual
agreement of Lessor and Lessee or, failing such agreement, by an independent, qualified appraiser selected by Lessor, with the cost of such appraisal to be borne by Lessee. Lessee shall pay
Lessor the purchase price plus any applicable taxes on the expiration of the Base Term in immediately available funds.
If
Lessee fails to provide notice of its election to either extend or purchase pursuant to clause (i) or (ii) above, respectively, at least 90 days before expiration of the Base Term, Lessee shall be
deemed to have elected to extend the base term pursuant to subsection (i) hereinabove. Lessee shall reimburse Lessor for all costs and expenses (including Attorney Costs) incurred in connection with
any extension or purchase hereunder.
BANC OF AMERICA LEASING & CAPITAL, LLC |
|
R-B RUBBER PRODUCTS, INC. |
(Lessor) |
|
(Lessee) |
By:
|
|
By: /s/ PAUL C. SIMONS
|
Printed Name:
|
|
Printed Name: Paul C. Simons
|
Title: Vice President
|
|
Title: Treasurer
|
|
|
Acceptance Date: 12/27/99
|
Attachments(s):
Annex
I: Schedule of Stipulated Loss Values
[Annex
II: Supplemental Return Requirements]
3
Bank of America
|
|
Schedule to |
|
Schedule |
Banc of America Leasing & Capital, LLC |
|
Lease Agreement |
|
Number 001 |
|
This Schedule ("Schedule"), dated as of December 21, 1999 between Banc of America
Leasing & Capital, LLC ("Lessor") and R B Recycling, Inc. ("Lessee") is executed pursuant to Lease Agreement Number 01682-00400 dated December 21, 1999
incorporated in this Schedule by this reference (the "Lease Agreement"). Unless otherwise defined in this Schedule, capitalized terms used in this Schedule have the respective meanings assigned to
such terms in the Lease Agreement. If any provision of this Schedule conflicts with any provision of the Lease Agreement, the provisions contained in this Schedule shall prevail. Lessee hereby
authorizes Lessor to insert the serial numbers and other identification data of the Units, dates, and other omitted factual matters or descriptions in this Schedule.
- 1.
- Description of Units. The Units subject to this Schedule ("Units"), which have a cost to Lessor ("Lessor's Cost") in the aggregate of
$713,300.00, inclusive of taxes, shipping, installation and other related expenses, if any ("Soft Costs"), are as follows:
Quantity
|
|
Description
|
|
Serial Number
|
|
Lessor's Cost
(Including Soft Costs)
|
|
|
|
|
|
|
|
See Exhibit "A" attached hereto and made a part hereof.
- 2.
- Acceptance. Lessee acknowledges and represents that the Units (a) have been delivered to, received and inspected by Lessee, (b) are in good
operating order, repair, condition and appearance, (c) are of the manufacture, design and capacity selected by Lessee and are suitable for the purposes for which the Units are leased, and are
acceptable and satisfactory to Lessee, (d) do not require any additions or modifications to make them suitable for use, other than ancillary modifications or additions normally made by lessees of
similar assets, and are available for use and lease by Lessee and Lessor, and (e) have been irrevocably accepted as "Units" leased by Lessee under this Schedule as of the date written below (the
"Acceptance Date").
- 3.
- Term. The term of the Lease for the Units is for an "Interim Term" (if any) beginning on the
Acceptance Date, and continuing through and
including the day preceding the Base Date; and for a "Base Term" of Eighty-Four (84) months, beginning on the 5th day of the calendar month following the Acceptance Date (the "Base Date").
- 4.
- Rental. Interim Rent shall be due Lessor for each day in the Interim Term and shall equal the daily equivalent of the initial Base Rent.
Interim Rent shall be payable on the Base Date. Base Rent shall be payable in arrears in Eight-Four (84) consecutive monthly rental installments of $4,154.82 each, the first Base Rent installment
being payable on the Base Date and the remaining Base Rent installments being payable on the 5th day of each succeeding month.
- 5.
- Stipulated Loss
Value. After Lessor's receipt of notice of the occurrence of any Total Loss or other relevant event relating to any Unit,
Lessor shall calculate the Stipulated Loss Value for such Unit and give Lessee notice thereof. Such "Stipulated Loss Value", as of any particular date, shall be the product obtained by multiplying the
Lessor's Cost for the Unit in question by the percentage, as set forth in the "Schedule of Stipulated Loss Values" attached as Annex I, specified
opposite the rent installment number (or date) becoming due immediately after the date Lessee gives or is required to give Lessor notice requiring payment of the Stipulated Loss Value. If only a
portion of the Units is affected by any event causing calculation of Stipulated Loss Value, and the cost of such portion cannot
1
be
readily determined from the Lessor's Cost set forth above, then the Lessor's Cost for such portion shall be Pro-Rated by Lessor, and notified to Lessee.
- 6.
- Tax Matters. Lessee represents, warrants and agrees that (a) the Units qualify under asset guideline class 30.100 and constitute "7-year
property" within the meaning of Section 168 of the Code; (b) the Lessor is the owner of the Units and is entitled to annual accelerated cost recovery deductions for each Unit as provided by Section
168(a) of the Code; (c) the Lessee and all direct or indirect assignees and sublessees of Lessee shall treat this Lease as a "true lease" for income tax purposes and will not claim any depreciation or
other tax attributes associated with ownership of the Units; and (d) in any taxable year of Lessor, no deductions or losses arising from this Lease will arise from sources without the United States
under Section 863 of the Code.
- 7.
- Location of Units. The Units will be located or, in the case of mobile equipment,
principally based at 8501 N. Borthwick, Portland, OR 97217.
- 8.
-
Further Representations and Agreements. Lessee represents, warrants and agrees as follows:
- (a)
- All
representations and warranties of Lessee contained in the Lease Agreement are restated as of the Acceptance Date and are true and correct as of such date.
- (b)
- There
has been no material adverse change in the operations, business, properties or condition (financial or otherwise) ("Material Adverse Change") of Lessee or any Guarantor since
April 30, 1999. There is not pending against Lessee any litigation, proceeding, dispute or claim that may result in a Material Adverse Change as to Lessee or that may call into question or impair
Lessee's legal or other ability to enter into and perform its obligations under this Lease.
- (c)
- The
operation and maintenance of any Unit in the ordinary course by Lessee do not require the entry into any software or other intellectual property rights agreement with any
licensor or other person, except as disclosed to Lessor in writing prior to the Acceptance Date.
- 9.
- Miscellaneous
- (a)
- Early Buy-Out. If no Event of Default exists, Lessee may purchase all, but not less than all, Units subject to this Schedule at
the end of
the 72nd scheduled Base Rent installment date of the Base Term of each such Unit (the "Early Buy-Out Date"), by notice to Lessor not less than 90 days prior to the Early Buy-Out Date. On the Early
Buy-Out Date, Lessee shall pay to Lessor the Base Rent installment
due, together with all other amounts then owing, plus an amount equal to $271,054.00, plus applicable taxes. Upon such payment the obligation of Lessee to pay rent hereunder with respect to the Units
after the Early Buy-Out Date shall cease, the Lease term for the Units shall end on the respective Early Buy-Out Date, and Lessor shall execute and deliver to Lessee a quitclaim bill of sale for the
Units.
- (b)
- Extension; Purchase. In lieu of Lessee's obligation to return the Units to Lessor upon expiration of the
Base Term, Lessee may, if no Event
of Default exists, and upon Lessee having provided to Lessor notice not less than 90 days prior to such expiry, irrevocably elect to :
- (i)
- extend
the Base Term as to all and not less than all of the Units under this Schedule for a period to be agreed upon by Lessee and Lessor for an
amount equal to the Units' then fair market rental value as determined by Lessor. The fair market rental value shall be payable monthly by Lessee to Lessor on the first day of each month during the
extension term; or
- (ii)
- purchase
all of Lessor's right, title and interest in and to all, but not less than all, of the Units under this Schedule on an "as-is, where-is,"
quitclaim basis, for a purchase price equal to the then Fair Market Value of the Units. "Fair Market Value" shall mean an amount equal to the value of the Units that would be received in an
arm's-length transaction between an informed and willing buyer/user and an informed and willing seller under no compulsion to sell, as determined by
2
mutual
agreement of Lessor and Lessee or, failing such agreement, by an independent, qualified appraiser selected by Lessor, with the cost of such appraisal to be borne by Lessee. Lessee shall pay
Lessor the purchase price plus any applicable taxes on the expiration of the Base Term in immediately available funds.
If
Lessee fails to provide notice of its election to either extend or purchase pursuant to clause (i) or (ii) above, respectively, at least 90 days before expiration of the Base Term, Lessee shall be
deemed to have elected to extend the base term pursuant to subsection (i) hereinabove. Lessee shall reimburse Lessor for all costs and expenses (including Attorney Costs) incurred in connection with
any extension or purchase hereunder.
BANC OF AMERICA LEASING & CAPITAL, LLC |
|
R B RECYCLING, INC. |
(Lessor) |
|
(Lessee) |
By:
|
|
By: /s/ PAUL C. SIMONS
|
Printed Name:
|
|
Printed Name: Paul C. Simons
|
Title: Vice President
|
|
Title: Treasurer
|
|
|
Acceptance Date: 12/27/99
|
Attachments(s):
Annex
I: Schedule of Stipulated Loss Values
[Annex
II: Supplemental Return Requirements]
3
Bank of America
|
|
Schedule to |
|
Schedule |
Banc of America Leasing & Capital, LLC |
|
Lease Agreement |
|
Number 002 |
|
This Schedule ("Schedule"), dated as of December 21, 1999 between Banc of America
Leasing & Capital, LLC ("Lessor") and R B Recycling, Inc. ("Lessee") is executed pursuant to Lease Agreement Number 01682-00400 dated December 21, 1999
incorporated in this Schedule by this reference (the "Lease Agreement"). Unless otherwise defined in this Schedule, capitalized terms used in this Schedule have the respective meanings assigned to
such terms in the Lease Agreement. If any provision of this Schedule conflicts with any provision of the Lease Agreement, the provisions contained in this Schedule shall prevail. Lessee hereby
authorizes Lessor to insert the serial numbers and other identification data of the Units, dates and other omitted factual matters or descriptions in this Schedule.
- 1.
- Description of Units. The Units subject to this Schedule ("Units"), which have a cost to Lessor ("Lessor's Cost") in the aggregate of
$90,416.00, inclusive of taxes, shipping, installation and other related expenses, if any ("Soft Costs"), are as follows:
Quantity
|
|
Description
|
|
Serial Number
|
|
Lessor's Cost
(Including Soft Costs)
|
One(1) |
|
2000 FLS112 FREIGHTLINER |
|
1FUYZCXB3YHG18827 |
|
$ |
64,900.00 |
One(1) |
|
1999 F251 4x4 SUPERCAB PICKUP |
|
1FTNX21LBXE C30212 |
|
$ |
25,516.00 |
- 2.
- Acceptance. Lessee acknowledges and represents that the Units (a) have been delivered to, received and inspected by Lessee, (b) are in good
operating order, repair, condition and appearance, (c) are of the manufacture, design and capacity selected by Lessee and are suitable for the purposes for which the Units are leased, and are
acceptable and satisfactory to Lessee, (d) do not require any additions or modifications to make them suitable for use, other than ancillary modifications or additions normally made by lessees of
similar assets, and are available for use and lease by Lessee and Lessor, and (e) have been irrevocably accepted as "Units" leased by Lessee under this Schedule as of the date written below (the
"Acceptance Date").
- 3.
- Term. The term of the Lease for the Units is for an "Interim Term" (if any) beginning on the
Acceptance Date, and continuing through and
including the day preceding the Base Date; and for a
"Base Term" of Eighty-Four (84) months, beginning on the 5th day of the calendar month following the Acceptance Date (the "Base Date").
- 4.
- Rental. Interim Rent shall be due Lessor for each day in the Interim Term and shall equal the daily equivalent of the initial Base Rent.
Interim Rent shall be payable on the Base Date. Base Rent shall be payable in arrears in Eighty-Four (84) consecutive monthly rental installments of $526.65 each, the first Base Rent installment being
payable on the thirtieth (30th) day following the Base Date and the remaining Base Rent installments being payable on same day of each succeeding month.
- 5.
- Stipulated Loss Value. After Lessor's receipt of notice of the occurrence of any Total Loss or other relevant event relating to any Unit,
Lessor shall calculate the Stipulated Loss Value for such Unit and give Lessee notice thereof. Such "Stipulated Loss Value", as of any particular date, shall be the product obtained by multiplying the
Lessor's Cost for the Unit in question by the percentage, as set forth in the "Schedule of Stipulated Loss Values" attached as Annex I, specified
opposite the rent installment number (or date) becoming due immediately after the date Lessee gives or is required to give Lessor notice requiring payment of the Stipulated Loss Value. If only a
portion of the Units is affected by any event causing calculation of Stipulated Loss Value, and the cost of such portion cannot be readily determined from the Lessor's Cost set forth above, then the
Lessor's Cost for such portion shall be Pro-Rated by Lessor, and notified to Lessee.
A-1
- 6.
- Tax Matters. Lessee represents, warrants and agrees that (a) the Units qualify under asset guideline class 30.100 and constitute "7-year
property" within the meaning of Section 168 of the Code; (b) the Lessor is the owner of the Units and is entitled to annual accelerated cost recovery deductions for each Unit as provided by Section
168(a) of the Code; (c) the Lessee and all direct or indirect assignees and sublessees of Lessee shall treat this Lease as a "true lease" for income tax purposes and will not claim any depreciation or
other tax attributes associated with ownership of the Units; and (d) in any taxable year of Lessor, no deductions or losses arising from this Lease will arise from sources without the United States
under Section 863 of the Code.
- 7.
- Location of Units. The Units will be located or, in the case of mobile equipment,
principally based at 8501 N. Borthwick, Portland, OR 97217.
- 8.
- Further Representations and Agreements. Lessee
represents, warrants and agrees as follows:
- (a)
- All
representations and warranties of Lessee contained in the Lease Agreement are restated as of the Acceptance Date and are true and correct as of such date.
- (b)
- There
has been no material adverse change in the operations, business, properties or condition (financial or otherwise) ("Material Adverse Change") of Lessee or any Guarantor since
April 30, 1999. There is not pending against Lessee any litigation, proceeding, dispute or claim that may result in a Material Adverse Change as to Lessee or that may call into question or impair
Lessee's legal or other ability to enter into and perform its obligations under this Lease.
- (c)
- The
operation and maintenance of any Unit in the ordinary course by Lessee do not require the entry into any software or other intellectual property rights agreement with any
licensor or other person, except as disclosed to Lessor in writing prior to the Acceptance Date.
- 9.
- Miscellaneous
- (a)
- Early Buy-Out. If no Event of Default exists, Lessee may purchase all, but not less than all, Units subject to this Schedule at
the end of
the 72nd scheduled Base Rent installment date of the Base Term of each such Unit (the "Early Buy-Out Date"), by notice to Lessor not less than 90 days prior to the Early Buy-Out Date. On the Early
Buy-Out Date, Lessee shall pay to Lessor the Base Rent installment due, together with all other amounts then owing, plus an amount equal to $34,358.08, plus applicable taxes. Upon such payment the
obligation of Lessee to pay rent hereunder with respect to the Units after the Early Buy-Out Date shall cease, the Lease term for the Units shall end on the respective Early Buy-Out Date, and Lessor
shall execute and deliver to Lessee a quitclaim bill of sale for the Units.
- (b)
- Extension; Purchase. In lieu of
Lessee's obligation to return the Units to Lessor upon expiration of the Base Term, Lessee may, if no Event
of Default exists, and upon Lessee having provided to Lessor notice not less than 90 days prior to such expiry, irrevocably elect to :
- (i)
- extend
the Base Term as to all and not less than all of the Units under this Schedule for a period to be agree upon by Lessee and Lessor for an
amount equal to the Units' then fair market rental value as determined by Lessor. The fair market rental value shall be payable monthly by Lessee to Lessor on the first day of each month during the
extension term; or
- (ii)
- purchase
all of Lessor's right, title and interest in and to all, but not less than all, of the Units under this Schedule on an "as-is, where-is"
quitclaim basis, for a purchase price equal to the then Fair Market Value of the Units. "Fair Market Value" shall mean an amount equal to the value of the Units that would be received in an
arm's-length transaction between an informed and willing buyer/user and an informed and willing seller under no compulsion to sell, as determined by mutual agreement of Lessor and Lessee or, failing
such agreement, by an independent, qualified appraiser selected by Lessor, with the cost of such appraisal to be borne by Lessee. Lessee shall
A-2
If
Lessee fails to provide notice of its election to either extend or purchase pursuant to clause (i) or (ii) above, respectively, at least 90 days before expiration of the Base Term, Lessee shall be
deemed to have elected to extend the base term pursuant to subsection (i) hereinabove. Lessee shall reimburse Lessor for all costs and expenses (including Attorney Costs) incurred in connection with
any extension or purchase hereunder.
- [10.
- Motor Vehicle Provisions.
- (a)
- Registration.
- (b)
- (i)
- All
Units that are motor vehicles shall at all times be registered and titled as follows:
(A) Registered Owner. |
|
Lessor: |
|
Banc of America Leasing & Capital, LLC
2059 Northlake Parkway, 4th Floor
Tucker, GA 30084 |
|
|
Lessee: |
|
R-B Rubber Products, Inc.
8501 N. Borthwick
Portland OR 97217 |
(B) Lienholder. |
|
Banc of America Leasing & Capital, LLC
2059 Northlake Parkway
4th Floor
Tucker, GA 30084 |
- (ii)
- Lessee
shall be responsible for the correct, titling of all such Units. Lessee shall cause the original certificates of title to be delivered to
Lessor for retention in Lessor's files throughout the term of the Lease. All costs of registration and licensing of the Units are for the account of Lessee.
BANC OF AMERICA LEASING & CAPITAL, LLC |
|
R B RECYCLING, INC. |
(Lessor) |
|
(Lessee) |
By:
|
|
By: /s/ PAUL C. SIMONS
|
Printed Name:
|
|
Printed Name: Paul C. Simons
|
Title: Vice President
|
|
Title: Treasurer
|
|
|
Acceptance Date: 12/27/99
|
Attachment:
Annex
I: Schedule of Stipulated Loss Values
A-3
See Exhibit "A" attached hereto and made a part hereof.
See Exhibit "A" attached hereto and made a part hereof.