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The Proz computer purchase agreement recites a purchase price of
$449,700, payable as follows:
1. $200 in cash payable to Sha-Li no later than
December 31, 1979.
2. $1,500 by delivery to Sha-Li of a recourse note
concurrently with execution of the Proz computer
purchase agreement.
3. $11,500 by delivery to Sha-Li of another recourse note
concurrently with execution of the Proz computer
purchase agreement.
4. $436,500 by delivery to Sha-Li of an installment note
(the Proz computer installment note) concurrently with
execution of the Proz computer purchase agreement.
The Proz computer installment note is interest bearing and calls
for 96 monthly installment payments, each in the amount of
$6,908.79, commencing on July 1, 1979.
In connection with Proz' purchase of the computer equipment
from Sha-Li, Proz and Sha-Li also entered into an agreement
entitled "Assumption Agreement" dated as of June 30, 1979 (the
Proz assumption agreement). The Proz assumption agreement
provides that Proz agrees to be bound by the obligations of Sha-
Li contained in the assignment agreements and that Proz'
ownership interest in the computer equipment shall be subordinate
to the security interest granted to MHLC by the assignment
agreements. Under the Proz assumption agreement, no recourse
shall be had against Proz or Proz' officers, directors, or
stockholders with respect to any such obligations assumed by
Proz, and, as to Proz, all such obligations are nonrecourse
obligations.
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Last modified: May 25, 2011