- 5 -
and was to end on June 28, 1994, and called for monthly payments
of $128,701. The Supplement for the First Lease has not been
provided to the Court.
During 1990, West One determined that the 3090 was no longer
adequate for its needs and that an upgrade to a more powerful
mainframe computer would be required. Accordingly, in October
1990, West One and ICC executed a document captioned the
"Rollover Agreement" (the Agreement). Under the Agreement, ICC
released West One from its obligations under the First Lease on
several conditions, including that West One finance its
replacement computer equipment with ICC (“Lessee commits to
finance the replacement Equipment with IBM Credit Corporation”).
Under the Agreement, the termination of the First Lease took
effect on November 15, 1990, at which time the payments yet to be
made under the First Lease in accordance with its terms would
have amounted to approximately $5,662,844. However, the
Agreement required West One to pay a "Rollover Charge" of $2.5
million, which was financed by ICC over the 5-year period of the
new lease (discussed in the next paragraph). The Agreement
concludes with the following statement:
This Agreement is valid when accepted by both
parties and payment in full (Rollover charge plus all
lease payments due through the Rollover Date) or a
signed Term Lease Supplement financing the Rollover
charge is received by Lessor on or before November 15,
1990. This supercedes [sic] any prior Rollover quote
for this equipment.
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