- 25 -
leases. As mentioned above, the fact that the quarterly
payments under the Trust Note equaled the fixed rent to be
paid by Equilease meant that the Trust's income was
effectively limited to two sources: (1) The Trust's share
of contingent rents and (2) the proceeds from the sale of
the computer equipment at the end of the 96-month master
leases.
The Projections show the cumulative after-tax benefit
to the Trust on an aggregate basis assuming that the Trust
realized additional income from contingent rents through
the end of 1990 in the aggregate amount of $914,175 and
further realized the proceeds from the sale of the computer
equipment at the expiration of the master leases in the
amounts set forth. For example, if the Trust realized sale
proceeds amounting to 20, 25, or 30 percent of original
cost of the equipment less a 10-percent sales commission
(i.e., $930,671, $1,163,333, or $1,396,006, respectively),
the Projections dated December 16, 1982, show that the
Trust would realize in 1990 a cumulative after-tax benefit
of $950,507, $1,072,657, and $1,194,808, respectively.
Significantly, the forecasted sale proceeds used in
the Projections are not based upon Mr. Wilkins' Appraisal
or on the appraisal of any other independent appraiser.
At the first trial, Mr. Scott Binder, who prepared the
Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 NextLast modified: May 25, 2011