Harry E. Peaden, Jr. - Page 8




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               In addition to the monthly rent, Country-Fed must pay all              
          registration and compliance fees not included in the base rent.             
          Country-Fed also must pay any taxes that accrue with respect to             
          the use or possession of the particular trucks during the term of           
          its lease transaction.                                                      
               Country-Fed must repair any damage to the trucks.  If a                
          truck is damaged beyond repair, Country-Fed must pay the lessor             
          the remaining base rent.8                                                   
               The master lease provides that title to the leased truck               
          remains with the lessor throughout the term of the lease.  At the           
          end of the lease term for a particular truck, Country-Fed is                
          responsible to return that truck to the lessor.  If the truck               
          remains in Country-Fed's possession beyond the term of the                  
          respective lease, Country-Fed is required to continue paying the            
          lessor the monthly service and administrative fees.                         
               Upon return of the truck, the lessor is obligated to sell              
          the truck.  If the proceeds of the sale obtained by the lessor              
          exceed any remaining base rent, plus the cost to the lessor of              


          7(...continued)                                                             
          monthly rent not included in the depreciation reserve.  The ARI             
          master lease also provides that Country-Fed may continue to use             
          the truck at the end of the lease term as long as it continues to           
          pay the "administrative" portion of the monthly rent.                       
          8    Under the ARI master lease, if a truck was damaged beyond              
          repair, Country-Fed can elect to terminate the lease.                       
          Termination of the lease effectively results in Country-Fed's               
          paying the lessor the remaining base rent.  See infra.                      




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Last modified: May 25, 2011