- 35 -
Rents payable under the equipment lease before the early
termination dates were subject to periodic adjustments to the
extent that prevailing market rates during the equipment lease term
increased or decreased from time to time above or below the rates
that were reflected in the original rent schedule. Comdisco had
the right, on any rent payment date that occurred more than 5
months after the commencement of the equipment lease, to prepay (on
a present value basis) certain of the then-remaining installments
of rent.
Pursuant to the terms of the equipment lease and the term
loan, for each category of the equipment, rents due to Andantech
from Comdisco were equal to the payments under the term loan due
from Andantech to Comdisco before the early termination date.
The leases with the end users were unaffected by the equipment
lease. When the initial subleases with the end users expired,
Comdisco had the right to re-lease the equipment.
Comdisco agreed to indemnify Andantech from and against
certain taxes imposed on Andantech (or its members) as a result of
the sale, purchase, or ownership of the equipment, the payment of
rents, and other factors. The indemnified taxes included State
sales and property taxes but did not include any Federal taxes.
Comdisco also agreed to indemnify Andantech against Federal
withholding taxes on rents or on income from the sale of any right
to receive rents; the indemnity was transferable to the benefit of
any purchaser, lender, or other assignee of Andantech.
Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 NextLast modified: May 25, 2011