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(i) in eleven (11) equal consecutive semi-annual
installments of $1,446,718 on April 30th and October
31st of each year, and (ii) thereafter in five (5)
equal consecutive semi-annual installments of $501,782
on April 30th and October 31st of each year, commencing
April 30, 1995, through and including October 31, 2002.
The $747,910 short-term promissory note was payable 60 days after
November 1, 1994. CFP also placed liens on the equipment to
secure EQ’s note obligations to CFP.
4. On November 1, 1994, after CFP’s sale of the equipment
to EQ in step 3 above, CFP leased the equipment back from EQ
under a wraparound lease encompassing the existing end-user
equipment leases (master lease). The existing Shared and K-Mart
end-user leases expired no later than March 29 and July 31, 1997,
respectively. The master lease expired on April 30, 2000, for
the Shared equipment, and on October 31, 2002, for the K-Mart
equipment, respectively.5 The master lease, among other things,
provided that CFP’s master lease residual interests in the K-Mart
and Shared end-user lease equipment consisted of residual periods
5The master lease also covered: (1) Computer equipment
subject to an existing end-user lease with the Health Ins. Plan
of Greater N.Y. (HIP NY), (2) computer equipment subject to an
existing end-user lease with Martin Marietta Corp. (Martin
Marietta), and (3) satellite dish equipment subject to an
existing end-user lease with Amoco Corp. (Amoco). The HIP NY
end-user lease expired on Dec. 31, 1997; the Martin Marietta end-
user lease expired on May 31, 1997; and the Amoco end-user lease
expired on Mar. 31, 2000. As to this foregoing equipment, the
master lease ran: (1) From Nov. 1, 1994, through Apr. 30, 2000,
in the case of the HIP NY equipment; (2) from Nov. 1, 1994,
through Apr. 30, 2000, in the case of the Martin Marietta
equipment; and (3) from Nov. 1, 1994, through Oct. 31, 2002, in
the case of the Amoco equipment.
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