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Foreign Equipment between Systems and Equilease C.V. We
shall refer to all Equilease entities as Equilease. Under
each master lease, Systems, as lessor, leased the equipment
to Equilease, as lessee, and assigned to Equilease all of
the lessor's rights under the initial user leases. The
term of both master leases was 96 months. In return,
Equilease agreed to pay fixed rent, contingent rent, and
taxes. Generally, fixed rent refers to the rent to be paid
by Equilease. The amount of the fixed rent was equal to
the payments the Trust was required to make under the Trust
Note, as further discussed below. Contingent rent refers
to the rent that might be received from re-leasing the
equipment between expiration of the initial user leases
and the end of the master leases. Under the terms of the
master leases, the Trust and Equilease shared any
contingent rent.
Under the Sale Agreement, the Trust purchased an
interest in the subject computer equipment and received
assignment of Systems' interest in the master leases.
The stated purchase price was $5,170,392. The Trust
paid Systems $954,000 in cash, of which $917,392 was
characterized as a downpayment and $36,608 was
characterized as a prepayment of interest due on the
Trust Note in 1983. The Trust issued a promissory note
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Last modified: May 25, 2011