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Approximately 7 percent of the sale price of the Sentinel
EPE recyclers sold by PI to ECI Corp. was paid in cash, with the
balance financed through a 12-year nonrecourse note requiring
equal monthly installments of $100,917, including annual interest
of 19.8 percent. ECI Corp.'s purchase was subject to
Clearwater's leasing agreement and FMEC Corp.'s licensing
agreement.
Similarly, approximately 7 percent of the sale price of the
Sentinel EPE recyclers sold by ECI Corp. to F&G Corp. was paid in
cash, with the remainder financed through a 12-year, 90-percent
nonrecourse note requiring equal monthly installments of
$100,917, including annual interest at 15.4 percent. The 10-
percent recourse portion of the note was payable only after the
90-percent nonrecourse portion was satisfied.
F&G Corp.'s purchase was subject to Clearwater's agreement
to enter into a lease with F&G Corp. and was also subject to FMEC
Corp.'s agreement to enter into a license agreement with
Clearwater.
Clearwater's lease from F&G Corp. was for a term of 12
years, a lease term equal to 150 percent of the class life of the
Sentinel EPE recyclers. The lease required monthly rental
payments of $100,917.
Clearwater's license to FMEC Corp. was for a term of 12
years at a guaranteed minimum royalty of $100,917 per month.
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Last modified: May 25, 2011