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EXHIBIT 10.40
COMERICA LEASING CORPORATION
INTERIM LEASE SCHEDULE
Interim Schedule No. 00002H THE COLONEL'S, INC.
(Lessee)
Lease Agreement No. 2885 COMERICA LEASING CORPORATION
(Lessor)
1. LEASE AGREEMENT: This Interim Lease Schedule ("Schedule") is part of
and subject to a certain Lease Agreement bearing the above Lease Agreement
Number, dated DECEMBER 21, 1993, made by and between COMERICA LEASING
CORPORATION, (herein "CLC"), as Lessor, and THE COLONEL'S, INC., as Lessee,
together with any amendments, attachments and exhibits thereto (herein
called "Lease Agreement") which is hereby incorporated by reference and
made a part hereof. In the event of a conflict between this Schedule and
the Lease Agreement, the provisions of the Lease Agreement shall prevail.
2. DESCRIPTION OF EQUIPMENT ("Equipment"):
One (1) HPM 6.0" Model TM111 Extruder, Serial No. 95212,
including: extrusion lines, dies, forming lines, screen changers,
tooling, sheet line system, omart sheet thickness gauge,
supplemental dip tank, process control HPM EPM-11 Allen Bradley,
training, setup, freight, rigging, and installation, all
electrical, air, and water hookups, and all accessories and
attachments thereto.
3. LOCATION: The Equipment described above shall be delivered to the
Lessee and located at 951 AIKEN ROAD, OWOSSO, MI 49224.
4. INTERIM LEASE SCHEDULE: CLC and Lessee hereby agree that CLC shall
purchase certain equipment chosen by Lessee, as described above, and which
is acceptable to Lessee. CLC agrees to lease said Equipment to Lessee,
pursuant to the terms of this Schedule, the terms of the Lease Agreement
and consistent with the terms of any other document referred to herein.
This Schedule shall be evidence of CLC's payment in full or in part for the
Equipment and Lessee's agreement to enter into a permanent Lease Schedule
and to repay to CLC all amounts advanced pursuant to the terms of this
Schedule and the Lease Agreement.
5. TITLE ACQUISITION: CLC and Lessee agree, pursuant to a proposal
letter or proposed permanent Lease Schedule attached hereto, that CLC, at
the Lessee's request, will make payments as set forth below in subsection
A, B, & C, to acquire security interest in the equipment. Upon the
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selection of one of the following subsections, the other subsections shall
not apply.
a. REIMBURSEMENT OF LESSEE: Lessee has made certain payments
for the Equipment, for which Lessee shall be reimbursed by CLC.
Simultaneously with the execution of this Schedule, Lessee shall
execute to CLC, security interest in the equipment. The amount
paid to the Lessee by CLC hereunder shall be the "Funded Amount"
as hereinafter described.
b. DEPOSIT OR PAYMENT WITH PURCHASE ORDER: Lessee has ordered
the Equipment and simultaneously with the execution of this
Schedule, Lessee shall execute to CLC, security interest in the
equipment. CLC will pay the amounts required for the purchase of
the equipment as provided in the purchase order. Such payments
shall be the "Funded Amount" as hereafter described.
c. PROGRESS PAYMENT: The amount advanced by CLC under this
Schedule shall be the Funded Amount as hereinafter described.
6. TERM: The term of this Schedule shall commence upon the execution
hereof, and shall continue until termination by either: (a) the execution
of a permanent lease Schedule containing rates and terms agreeable to CLC
and Lessee, consistent with the proposal letter or proposed permanent lease
schedule, attached hereto, or (b) by CLC pursuant to the terms hereof,
including, but not limited to a default in the Lease Agreement.
In the event Lessee fails to execute a permanent Lease Schedule prior to
AUGUST 30, 1996, Lessee shall promptly pay CLC the Funded Amount as
hereinafter defined and all other amounts advanced by CLC in connection
with this transaction, including rent, late charges and interest as
described herein, without further demand or notice. Upon such payment by
Lessee to CLC, of said amounts, CLC shall assign to Lessee all of CLC's
right, title and interest in the Equipment, thereby terminating all
obligations of CLC to Lessee under this Schedule.
7. RENT: For the term of this Interim Lease Schedule, Lessee shall pay
rent to CLC determined as follows: An amount of Rent which would be equal
to interest on the principal sum of NINE HUNDRED SIXTY THOUSAND AND 00/100
Dollars ($960,000.00) (herein called "Funded Amount"), at the per annum
rate of the prime rate (currently 8.25%) of Comerica Bank, as determined
from time to time, commencing on JUNE 27, 1996, until the expiration or
termination of this Schedule. Interest shall be computed on a daily basis
using a year of 360 days, and in such computation, effect shall be given to
any change in the interest rate resulting from a change in said prime rate
on the date of such change in said prime rate. The first rental shall be
due July 30, 1996, with subsequent rental payments due on the 30th of each
succeeding month until the termination of this INTERIM LEASE SCHEDULE. If
any part of the above described rental payments shall not be paid when due,
Lessee shall pay to CLC, in addition to the rental payments due, a sum
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equal to five percent (5%) of the said delinquent rental amounts for each
month or portion thereof for which said rental amounts are delinquent.
8. PERMANENT SCHEDULE AND INDEMNITY: Lessee agrees to fully indemnify
and to hold CLC harmless from any damages, claims or loss of any kind,
relative to this Schedule. CLC and Lessee agree that this Schedule and
CLC's commitment to pay any amounts hereunder and to enter into a permanent
Schedule shall be subject to CLC's continued satisfaction with Lessee's
financial condition. Furthermore, if CLC deems itself insecure for any
reason whatsoever, this Schedule may be terminated. In the event CLC shall
give Lessee notice of the termination of this Schedule, all amounts due CLC
hereunder shall become immediately due and payable to CLC without further
notice.
The undersigned Lessee agrees to all the terms and conditions set forth
above, and in witness thereof hereby executes this Interim Lease Schedule,
this 27TH day of JUNE, 1996.
ACCEPTED:
Date: June 27, 1996 Date: June 27, 1996
COMERICA LEASING CORPORATION THE COLONEL'S, INC.
(Lessor) (Lessee)
By: /S/ BRIAN M. RIS By: /S/ RICHARD SCHOENFELDT
Brian M. Ris Richard Schoenfeldt
Its: Lease Marketing Officer Its: Controller
Comerica Leasing Corporation Lessee's Address:
29201 Telegraph Road 2nd Floor 620 South Platt Road,
Southfield, MI 48034 Milan, MI 48160