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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