MASTER EQUIPMENT LEASE AGREEMENT
SCHEDULE (GROUP I)
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LESSEE: HYUNDAI ELECTRONICS AMERICA, INC.
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Street Address: 3101 North First Street
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City/State/Zip: San Jose, California 95134
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LESSOR: AT&T COMMERCIAL FINANCE CORPORATION
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Address: 44 Whippany Road
Morristown, NJ 07962
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Lease
Number:
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SCHEDULE NO. IAO WHICH INCORPORATES BY REFERENCE MASTER EQUIPMENT LEASE
AGREEMENT DATED JANUARY 17, 1997 BETWEEN LESSOR AND LESSEE
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SELLER:
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Equipment Model/ Serial Total Purchase Rental
Qty. Mfr. Type Feature Description Number Price Payment
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See Attached Exhibit A 5 Year MACRS $5,765,367.68 $88,150.74
See Attached Exhibit A 7 Year MACRS $467,378.28 $7,428.37
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TOTAL PURCHASE PRICE $6,232,745.96 $95,579.11
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Initial Term: The Lease Term for each leased item commences on the
Commencement Date and continues for sixty (60) months after the First Rental
Payment Due Date.
Equipment Location:
2001 Fortune Drive
San Jose, CA 95131
Special Terms: YES___ (See Special Terms attached) NO X
---
END OF
TERM
OPTIONS: See Attached Section 1 below.
THE TERMS AND CONDITIONS OF THE END OF TERM OPTIONS AND OTHER IMPORTANT
PROVISIONS ARE SET FORTH IN THIS SCHEDULE.
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Interim Rental Payment: $3,204.23 per day from and including the Commencement
Date up to, but excluding, the First Rental Payment Due Date, payable monthly in
advance
Advance Rent:
Rental Payment: $95,579.11
First Rental Payment Due Date: September 1, 1997
Subsequent Rental Payment Due Date: The same day of each month as the First
Rental Payment Due Date.
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THIS SCHEDULE SHALL BE GOVERNED BY THE TERMS AND CONDITIONS OF THE MASTER
EQUIPMENT LEASE AGREEMENT REFERENCED BY THE LEASE NUMBER SPECIFIED ABOVE
(AGREEMENT) BY AND BETWEEN LESSEE, AS LESSEE, AND LESSOR OR AT&T CAPITAL
CORPORATION OR ANY AFFILIATE OR SUBSIDIARY THEREOF, AS LESSOR AND THE TERMS AND
CONDITIONS SET FORTH HEREIN. IN THE EVENT OF A CONFLICT BETWEEN THE TERMS OF
THIS SCHEDULE AND THOSE IN THE AGREEMENT, THE TERMS OF THIS SCHEDULE SHALL
GOVERN. PURSUANT TO SUCH TERMS AND CONDITIONS (WHICH LESSEE ACKNOWLEDGES THAT IT
HAS READ AND UNDERSTANDS), LESSEE AGREES TO LEASE FROM LESSOR (AS SPECIFIED
BELOW AND LESSOR AGREES TO LEASE TO LESSEE THE ABOVE REFERENCED EQUIPMENT. IT IS
FURTHER UNDERSTOOD AND AGREED THAT THE TERMS AND CONDITIONS OF THIS SCHEDULE MAY
BE DIFFERENT FROM THE TERMS AND CONDITIONS OF PRIOR SCHEDULES. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, LESSEE WAIVES ANY AND ALL RIGHTS AND REMEDIES
CONFERRED UPON A LESSEE BY ARTICLE 2A OF THE UCC AND ANY RIGHTS NOW OR HEREAFTER
CONFERRED BY STATUTE OR OTHERWISE THAT MAY LIMIT OR MODIFY THE LESSOR'S RIGHTS
AS DESCRIBED IN THE AGREEMENT, THIS SCHEDULE OR ANY OTHER FUNDAMENTAL AGREEMENT
(AS DEFINED IN THE AGREEMENT).
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THIS SCHEDULE, THE MASTER EQUIPMENT LEASE AGREEMENT REFERENCED BY THE LEASE
NUMBER SPECIFIED ABOVE (AGREEMENT) AND ALL OTHER FUNDAMENTAL AGREEMENTS (AS
DEFINED IN THE AGREEMENT) EXECUTED BY BOTH LESSOR AND LESSEE CONSTITUTE THE
ENTIRE AGREEMENT BETWEEN LESSOR AND LESSEE RELATING TO THE LEASING OF THE ABOVE
REFERENCED EQUIPMENT AND SUPERSEDE ALL PRIOR AGREEMENTS RELATING THERETO,
WHETHER WRITTEN OR ORAL, AND MAY NOT BE AMENDED OR MODIFIED EXCEPT IN WRITING
SIGNED BY THE PARTIES HERETO.
HYUNDAI ELECTRONICS AMERICA, INC. AT&T COMMERCIAL FINANCE CORPORATION
Lessee Lessor
By: /s/ S.K. Kang By: /s/ John R. Clark
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(Lessee Authorized Signature) (Lessor Authorized Signature)
John R. Clark
Corporate Counsel and
S.K. Kang / Treasurer Assistant Secretary
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(Type/Print Name and Title) (Type/Print Name and Title)
Date: June 18, 1997 Date: 6/18/97
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I Hereby Certify That This is a
True, Correct and Complete
Copy of This Document.
By: /s/ Anne G. Valk
-------------------------
Capitalized terms used in this Schedule that are not otherwise defined
herein shall have the meanings ascribed to them in the Master Equipment Lease
Agreement ("Agreement") identified on the first page of this Schedule. The terms
and conditions of this Schedule shall prevail over any conflicting or
inconsistent terms and conditions in the Agreement and/or any amendments thereto
entered into prior to the execution of this Schedule.
1. END OF TERM OPTIONS.
Notwithstanding anything to the contrary in Section 18 of the Agreement, Lessee
shall have only the following options at the expiration of the Initial Term of
this Schedule: (i) unless Lessor notifies Lessee to the contrary at least one
hundred and eighty (180) days prior to the expiration of the Initial Term,
Lessee shall renew this Schedule as to all (but not less than all) of the
Equipment for an additional twelve (12) month Term at the same monthly Rental
Payment; or (ii) if Lessor does not require Lessee to renew this Schedule for
the twelve (12) month Term provided in (i), Lessee must elect either Option A,
Option B, or Option C below at the end of the applicable Term of this Schedule.
OPTION A - FAIR MARKET VALUE PURCHASE OPTION.
(a) If Option A has been selected, no Event of Default exists, no
event has occurred and is continuing which with notice or the lapse of time, or
both, would constitute an Event of Default, and Lessee delivers to Lessor an
irrevocable written election notice at least one hundred twenty (120) days prior
to the expiration of the applicable Term, Lessee may purchase all (but not less
than all) of the Equipment at the end of the applicable Term at Fair Market
Value (as defined below).
(b) If Lessee elects to purchase the Equipment, it shall pay Lessor the
Fair Market Value amount at the expiration of the applicable Term, and Lessee
shall make all other payments required hereunder during the remaining Term of
this Schedule.
(c) Fair Market Value for the Equipment shall be determined by
agreement of Lessor and Lessee, or, at Lessee's sole expense, by an independent
appraiser selected by Lessor. Fair Market Value means the total price that would
be paid for the Equipment in an arm's length transaction between an informed and
willing buyer (other than a used equipment dealer) under no compulsion to buy
and an informed and willing seller under no compulsion to sell. In determining
Fair Market Value, the costs of removing the Equipment from the Equipment
Location and moving it to a new location shall not be deducted from its value.
(D) If Lessee elects to purchase the Equipment, and has completely
fulfilled the terms and conditions of the Agreement and this Section 1-Option A,
then on the last day of the applicable Term: (i) this Schedule shall terminate
and, except as provided in Section 25 of the Agreement, Lessee shall be relieved
of all obligations under this Schedule; and (ii) Lessee shall be entitled to
Lessor's interest in the Equipment "AS IS, WHERE IS," and without any warranty,
express or implied from Lessor, other than the absence of any liens by, through
or under Lessor.
OPTION B - FAIR RENTAL VALUE RENEWAL OPTION.
(a) If Option B has been selected, no Event of Default exists, no event
has occurred and is continuing which with notice or the lapse of time, or both,
would constitute an Event of Default, and Lessee delivers to Lessor an
irrevocable written election notice at least one hundred twenty (120) days prior
to the expiration of the applicable Term, Lessee may renew this Schedule as to
all (but not less than all) of the Equipment for a Renewal Term of not less than
twelve (12) months at the Fair Rental Value (as defined below); provided,
however, that the foregoing renewal option may not be exercised if Lessor
determines, in its sole discretion, that there has been a material adverse
change in Lessee's business or financial condition since the Commencement Date.
If Lessee elects to renew this Schedule, Lessee and Lessor shall enter into a
supplement to this Schedule to confirm the applicable Fair Rental Value amount
and the length of the applicable Renewal Term (which shall be a minimum of
twelve (12) months)).
(b) Fair Rental Value for the Equipment shall be determined by agreement
of Lessor and Lessee, or, at Lessee's sole expense, by an independent appraiser
selected by Lessor. Fair Rental Value means the periodic amount which would be
payable for the Equipment in an arm's length transaction between an informed and
willing Lessee and an informed and willing Lessor, neither under compulsion to
lease. In determining Fair Rental Value, the costs of removing the Equipment
from the Equipment Location and moving it to a new location shall not be
deducted from its value.
(c) If Lessee elects to renew this Schedule, Lessee and Lessor shall
enter into a supplement to this Schedule to confirm the applicable Fair Rental
Value amount and the length of the applicable Renewal Term.
OPTION C - RETURN OPTION.
(a) If Lessee decides not to purchase the Equipment pursuant to Option
A or renew this Schedule pursuant to Option B at the end of the applicable Term,
it shall provide Lessor with irrevocable written notice thereof at least one
hundred twenty (120) days prior to the expiration of the applicable Term and
return all (but not less than all) of the Equipment to Lessor in accordance with
Section 18 of the Agreement.
(b) Should Lessee fail to: (i) provide Lessor with the one hundred
twenty (120) day notice required above; (ii) pay Lessor the Fair Market Value
amount specified above; or (iii) return the Equipment to Lessor in accordance
with Section 18 of the Agreement, the applicable Term shall be extended for
successive one hundred twenty (120) day periods until Lessee returns the
Equipment to Lessor in accordance with Section 18 of the Agreement, or Lessor
terminates this Schedule by ten (10) days' written notice to Lessee. In the
event this Schedule is extended pursuant to the preceding sentence, Lessee shall
continue to pay Lessor the periodic Rental Payments in effect prior to the
expiration of the applicable Term, and all other provisions of the Agreement and
this Schedule shall continue to apply.
2. STIPULATED LOSS VALUE.
For purposes of this Schedule, the Stipulated Loss Value of the
Equipment shall be determined by multiplying the applicable Stipulated Loss
Value Percentage (as specified in the SLV Table that is incorporated herein by
reference by the listing thereon of the Lease Number and Schedule Number
specified on the front of this Schedule) as of the due date of the last Rental
Payment due immediately prior to the date of the Loss or the Event of Default,
as applicable, by the Total Purchase Price set forth on the first page of this
Schedule.
3. TAX INDEMNITY.
(a) Lessor intends to take accelerated cost recovery deductions
("Recovery Deductions") under Sections 167(a) and 168(b)(l) of the Internal
Revenue Code of 1986, as amended ("Code"), and accelerated depreciation
deductions under applicable state law ("Depreciation Deductions"). Accordingly,
Lessee makes the following representations, warranties and covenants: (i) at the
time Lessee accepts the Equipment pursuant to Section 3 of the Agreement, the
Equipment will have been "placed in service" within the meaning of Sections 167
and 168 of the Code; (ii) the Total Purchase Price set forth on the first page
of this Schedule shall qualify for Recovery Deductions and Depreciation
Deductions (with the exception of any items that are excluded by specific
language on the first page of this Schedule and any increase in the Total
Purchase Price that is attributable to any accrued interest under a Financing
Agreement); (iii) neither Lessee, any of its affiliates, nor any of its
successors, sublessees or assigns was, is, or will become a tax-exempt entity
described in Section 168(h)(2) of the Code at any time during the Term of this
Schedule or the five (5) years preceding the Commencement Date; and (iv) at no
time during the Term of this Schedule will Lessee (or any of its successors,
sublessees or assigns) take any action or fail to take any action (whether or
not such act or omission is otherwise required by the Agreement) that results in
a loss, reduction, deferral, recapture or other unavailability to Lessor of any
part of the Recovery Deductions or Depreciation Deductions. If, because of a
breach of this Section 3(a), Recovery Deductions or Depreciation Deductions are
lost, reduced, deferred, recaptured or otherwise made unavailable to Lessor (a
"Tax Loss"), Lessee shall, upon demand by Lessor, promptly pay damages to
Lessor. The amount of such damages shall be the amount necessary to provide
Lessor with a Net Economic Return (as defined in Section 3(b) below) equal to
the net Economic Return that Lessor would have realized if it had not suffered a
Tax Loss. A loss or damage to the Equipment will constitute a breach of this
Section 3(a) if it does not result in the payment of the Lessor's Return
described in Section 12 of the Agreement.
(b) Any damages required by Section 3(a) above shall be in the amount
necessary to provide Lessor a net after-tax yield, net after-tax cash flow and
net after-tax book earnings ("Net Economic Return") equal to the net Economic
Return Lessor would have realized with respect to the transaction contemplated
by this Schedule if a Tax Loss had not occurred, assuming Lessee would fulfill
all of its obligations hereunder, and shall be based upon the same assumptions
and pricing analysis used by Lessor in determining the amount of the periodic
Rental Payment then in effect. Without limiting the generality of the foregoing,
it shall be irrefutably presumed that all income of Lessor for any year is
subject to tax at the highest then applicable federal income tax rate generally
applicable to corporations, and that Lessor has sufficient taxable income to
offset all deductions arising hereunder.
(c) With respect to any damages or adjustments calculated by Lessor as
set forth above ("Calculation Amount"), at the request and expense of Lessee,
Lessor shall submit the assumptions and calculations underlying any
such Calculation Amount to Lessor's independent certified public accountants for
verification of the maintenance of Lessor's Net Economic Return. Such
accountants' determination that the Calculation Amount does or does not maintain
Lessor's Net Economic Return (and, in the case of the latter, such accountants'
determination of the adjusted amount that would so maintain such Net Economic
Return), shall be binding upon Lessor and Lessee. Lessee agrees that any
information provided to such accountants by Lessor constitutes private,
proprietary and confidential property of Lessor, and that no person other than
Lessor and such accountants shall be entitled to access thereto.
4. SECURITY INTEREST.
Lessor and Lessee intend the transaction described in this Schedule to
be a true lease, and Lessee hereby authorized Lessor to file a financing
statement to give public notice of Lessor's ownership of the Equipment. If such
transaction is deemed by a court of competent jurisdiction to be a lease
intended for security, Lessee grants Lessor and its assigns a purchase money
security interest in the Equipment and in all attachments, accessories,
additions, substitutions, products, replacements, rentals and proceeds
(including insurance proceeds) therefrom as well as a security interest in any
other Equipment financed pursuant to the Agreement or any other agreement
between Lessor and Lessee (collectively, "Collateral"). Lessee shall execute and
timely deliver to Lessor financing statements or any other documents Lessor
deems necessary to perfect or protect Lessor's security interest in the
Collateral. Lessor or Lessor's agent may file as a financing statement any lease
document (or copy thereof, where permitted by law) Lessor deems necessary to
perfect or protect Lessor's security interest in the Collateral. If Lessee fails
to execute any such document, Lessor or Lessor's agent is hereby authorized to
file any of the foregoing signed only by Lessor or Lessor's agent.
There shall be three (3) signed Counterparts of this Schedule. To the
extent that this Schedule constitutes chattel paper (as that term is defined in
the UCC), a security interest may only be created in, and perfected by
possession of, one Counterpart marked "Original"; all other Counterparts shall
be duplicates.
5. SOFTWARE; SOFTWARE TRANSFER FEES; RECERTIFICATION FEES.
Lessee and Lessor acknowledge that the Equipment on a Schedule may
include certain software ("Software") in which Lessor and Lessee have no
ownership or other proprietary rights. Where required by the Software owner or
manufacturer, Lessee shall enter into a license or other agreement for the use
of the Software. Any Software agreement shall be separate and distinct from the
Agreement and any Schedule, and Lessor shall not have any rights or obligations
thereunder unless otherwise agreed. In the event the Rent on a Schedule includes
an amount attributable to the financing by Lessor of Lessee's fee for use of the
Software, Lessee agrees that such amounts shall be deemed Rent hereunder. Lessee
shall be responsible for payment of, and shall indemnify Lessor against, any
software license or transfer fees and any recertification or similar fees or
charges imposed by the supplier of the Equipment or any third-party upon Lessor
or Lessor's subsequent end-user of any item of Equipment following the return of
any such item of Equipment to Lessor.
6. FINANCING OF ADDITIONS.
If Lessee intends to finance any addition or technical modification to
the Equipment, Lessee shall, in writing, provide Lessor with the terms under
which it hopes to obtain the financing. If Lessor does not, within 20 days after
receiving Lessee's request, offer to finance the addition upon the terms
requested by Lessee, Lessee may obtain offers from third parties and shall
notify Lessor of the details of any third party financing offer Lessee would
like to accept (Third Party Offer). If Lessor has not made a financing offer
to Lessee on terms substantially similar to the Third Party Offer within 10 days
of receiving Lessee's notice. Lessee may accept the Third Party Offer unless:
(a) the aggregate cost to Lessee of obtaining financing from the Third Party
Offer is greater than the aggregate cost under Lessor's financing offer; (b)the
Third Party Offer would create a security interest in, or a lien on, the
Equipment; or (c) the addition is not otherwise permitted under this Agreement.
7. RENTAL PAYMENT.
The monthly Rental Payment (other than the Interim Rental Payments)
shall be determined by multiplying the Total Purchase Price by .015226 for 5
Year MACRS Equipment and .01583 for 7 Year MACRS Equipment (the "Lease Rate
Factors"); provided, however, that the Lease Rate Factors may be adjusted upward
by Lessor five (5) business days prior to the First Rental Payment Due Date to
reflect any increase in the average life treasury note yields. In the event
Lessor elects to adjust the Lease Rate Factors, the following formula will be
utilized:
For every basis point increase in the treasury yield above 6.03%, an
increase of .0000049 will be added to the Lease Rate Factors.
Should an adjustment to the Lease Rate Factors be made which increases the
Rental Payment, Lessee and Lessor will immediately execute an amendment to this
Schedule setting forth the new Rental Payment, which Rental Payment will remain
in effect throughout the Initial Term of this Schedule.
Exhibit A to Equipment Schedule IA-O
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ITEM NO. PROCESS MACRS SUPPLIER MODEL NO. DESCRIPTION QUANTITY
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Mechanical/D2T
Texture 1600-
Auto Serface
1800 Texture Finisher &
1 Texture 5 Exclusive Design Co. Machine Wet/Dry HandIer 4
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718L Wet Dry
lA 5 Exclusive Design Co. Handler 4
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Laser
Texture
2 System 5 IBM LTT-5000 Lazer Texture 1
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Post DXT Disk Cleaning
3 Wash 5 Oliver Design MDC 2000 System 1
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Post
Texture Modular Disc
4 Wash 5 Oliver Design MDC 2000 Cleaning System 1
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12 Chamber
5 Sputter S Intevac, Inc. MDP 2508 Sputter System 1
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Sputter System
5A 5 Intevac, Inc. Parts 1
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Gravity Flo Disk
6 Lube 5 San Jose Technology 7G495 Luber 2
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Burnish & Tape Burnish
7 Buff 5 Exclusive Design Co. 800F 800HDF 2
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7A 5 Exclusive Design Co. 703 Auto Handler 2
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Bake Oven/450
8 Bake 5 Despatch Insustries LCC1 87NV-2 hr Batch 1
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Ultrasonic vapor
9 5 Branson Ultransonic Corp BSD/PFC 12165 degreaser 1
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Mini Gravity Flo
10 Re-Lube 5 San Jose Technology 7G495 Disk Luber 1
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Manual Disk
10A 5 San Jose Technology Rack 4
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ITEM NO. SERIAL NUMBER COST/UNIT EXTENDED COST PO NO.
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96113456; 96123631; 961409/
1 96113513; 96123542 $ 100,000.00 $ 400,000.00 HEAMOOOD9-1
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961409/
lA NA $ 20,000.00 $ 80,000.00 HEAMOOOO9-1
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2 LIT100 $ 635,000.00 $ 635,000.00 HEAMOO155
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60904/
3 521 $ 312,755.63 $ 312,755.63 HEAMOO147
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60610/
4 513 $ 478,400.00 $ 478,400.00 HEAMOOOO8
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1126/
5 298 $2,037,557.00 $2,037,557.00 HEAMODOOl
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1126/
5A NA $ 5,739.30 $ 5,739.30 HEAMOOOO1
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3501/
6 SJT-159, SJT 161 $ 132,718.00 $ 265,436.00 HEAMOOO1 1
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961409/
7 960738088, 96073089 $ 85,000.00 $ 170,000.00 HEAMOOOO9-1
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961409/
7A NA $ 20,000.00 $ 40,000.00 HEAMOOOO9-1
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40079601/
8 158325 $ 10,168.00 $ 10,168.00 HEAMOOOI24
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917/
9 1-9555-97 $ 32,589.75 $ 32,589.75 HEAMOOO76-01
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10 SJT-161 $ 23,765.00 $ 23,765.00 HEAMOOO75
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10A NA $ 785.00 $ 3,140.00 HEAMOOO75
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Lessee Initial /s/ SKK
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Lessor Initial /s/ JRC
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Exhibit A to Equipment Schedule IA-O
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ITEM NO. PROCESS MACRS SUPPLIER MODEL NO. DESCRIPTION QUANTITY
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11 Cert 5 Phase Metrics MG25OA Robot 1
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Glide/Certify -
1lA 5 Phase Metrics MG25OA Work Cells 10
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11B 5 Phase Metrics 24
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Slurry Del w/I/O
12 5 Exclusive Design Co. Flush & Parts 2
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12A 5 Exclusive Design Co. Slurrey Del Parts 1
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Slurry Del w/I/O
12B 5 Exclusive Design Co. Flush 2
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Load & Unload
13 5 Unmanned Solution System 1
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HGA Holder for
14 5 Phase Metrics Type 2 1
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HGA Holder for
14A 5 Phase Metrics FHT Type 10 1
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Water
15 5 Lepel Recirculator 1
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16 7 Renishaw A/8012/1344 Raman System 1
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17 7 QC Optics D-7000 Diskan 7000 1
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18 7 Nicolet FTIR FTIR 1
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19 7 Nicolet Parts For FTIR FTIR 1
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ITEM NO. SERIAL NUMBER COST/UNIT EXTENDED COST PO NO.
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11 84104515 $ 162,923.00 $ 162,923.00 HEAMOO137
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MG537, MG538,
MG539, MG540,
MG54', MG542,
MG544. MG545,
1lA MG546, MG 547 $ 101,750.00 $ 1,017,500.00 HEAMOO137
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- ----------------------------------------------------------------------------
11B NA $ 26.00 $ 624.00 HEAMOO491
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12 NA $ 6,000.00 $ 12,000.00 HEAMOO233
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12A NA $ 2,060.00 $ 2,060.00 HEAMOO233
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12B NA $ 5,330.00 $ 10,660.00 HEAMOO233
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13 NA $ 44,000.00 $ 44,000.00 HEAMOOO91
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14 NA $ 4,250.00 $ 4,250.00 HEAMOO137
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14A NA $ 2,750.00 $ 2,750.00 HEAMOO137
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15 NA $ 14,050.00 $ 14,050.00 HEAMOO121
-------------
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$ 5,765,367.68
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16 RMMO52V-8 $ 149,580.00 $ 149,560.00 HEAMO133
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17 724 $ 203,960.25 $ 203,960.25 HEAOOO61
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18 ADL9600391 $ 101,413.67 $ 101,413.67 HEAMOO65
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19 $ 12,424.36 $ 12,424.36 HEAMOO77
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$ 467,378.28
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Lessee Initial /s/ SKK
----------
Lessor Initial /s/ JRC
----------
[AT&T LOGO] AT&T
Capital Corporation (Applies to 5 Year MACRS Equipment)
MASTER EQUIPMENT LEASE AGREEMENT
STIPULATED LOSS VALUES
================================================================================
LESSEE: HYUNDAI ELECTRONICS AMERICA, INC.
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Street Address: 3101 North First Street
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City/State/Zip: San Jose, CA 95134
================================================================================
================================================================================
LESSOR: AT&T COMMERCIAL FINANCE CORPORATION
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Address: 44 Whippany Road
Morristown, NJ 07962
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Lease Schedule
Number: Number: IA0
================================================================================
The Stipulated Loss Value of the Equipment on the above referenced Master
Equipment Lease Agreement Schedule shall be determined by multiplying the
applicable Stipulated Loss Value Percentage (stated below) as of the due date of
the last Rental Payment due immediately prior to the date of the Loss or the
Event of Default, as applicable, by the Total Purchase Price.
Stipulated Loss Stipulated Loss Rental Stipulated Loss
Rental Period Value Percentage Rental Period Value Percentage Period Value Percentage
------------- ---------------- ------------- ---------------- ------ ----------------
1 104.89 31 74.23 61 36.31
2 104.03 32 73.08 62 34.94
3 103.14 33 71.92 63 33.55
4 102.24 34 70.74 64 32.16
5 101.33 35 69.57 65 30.76
6 100.41 36 68.38 66 29.36
7 99.48 37 67.19 67 27.96
8 98.54 38 65.99 68 26.56
9 97.58 39 64.79 69 25.15
10 96.62 40 63.57 70 23.74
11 95.65 41 62.35 71 22.33
12 94.66 42 61.12 72 20.91
13 93.67 43 59.88 After Mos. 72 21.00
14 92.66 44 58.63
15 91.64 45 57.38
16 90.62 46 56.12
17 89.58 47 54.85
18 88.54 48 53.58
19 87.49 49 52.29
20 86.43 50 51.00
21 85.37 51 49.70
22 84.29 52 48.39
23 83.21 53 47.08
24 82.11 54 45.75
25 81.01 55 44.43
26 79.90 56 43.09
27 78.78 57 41.75
28 77.66 58 40.40
29 76.52 59 39.05
30 75.38 60 37.68
/s/ SKK /s/ JRC
--------------- -------------
Lessee Initials Lessor Initials
[AT&T LOGO] AT&T
Capital Corporation (Applies to 7 Year MACRS Equipment)
MASTER EQUIPMENT LEASE AGREEMENT
STIPULATED LOSS VALUES
================================================================================
LESSEE: HYUNDAI ELECTRONICS AMERICA, INC.
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Street Address: 3101 North First Street
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City/State/Zip: San Jose, CA 95134
================================================================================
================================================================================
LESSOR: AT&T COMMERCIAL FINANCE CORPORATION
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Address: 44 Whippany Road
Morristown, NJ 07962
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Lease Schedule
Number: Number: IA0
================================================================================
The Stipulated Loss Value of the Equipment on the above referenced Master
Equipment Lease Agreement Schedule shall be determined by multiplying the
applicable Stipulated Loss Value Percentage (stated below) as of the due date of
the last Rental Payment due immediately prior to the date of the Loss or the
Event of Default, as applicable, by the Total Purchase Price.
Stipulated Loss Stipulated Loss Rental Stipulated Loss
Rental Period Value Percentage Rental Period Value Percentage Period Value Percentage
------------- ---------------- ------------- ---------------- ------ ----------------
1 104.83 31 74.57 61 36.62
2 103.97 32 73.43 62 35.23
3 103.09 33 72.27 63 33.83
4 102.20 34 71.11 64 32.42
5 101.30 35 69.94 65 31.00
6 100.39 36 68.76 66 29.57
7 99.47 37 67.57 67 28.14
8 98.54 38 66.38 68 26.71
9 97.60 39 65.17 69 25.27
10 96.65 40 63.96 70 23.81
11 95.69 41 62.73 71 22.36
12 94.72 42 61.50 72 20.90
13 93.75 43 60.27 After Mos.72 21.00
14 92.76 44 59.02
15 91.76 45 57.77
16 90.75 46 56.51
17 89.73 47 55.24
18 88.71 48 53.97
19 87.67 49 52.68
20 86.63 50 51.39
21 85.58 51 50.09
22 84.52 52 48.78
23 83.45 53 47.46
24 82.37 54 46.13
25 81.28 55 44.80
26 80.19 56 43.46
27 79.08 57 42.11
28 77.97 58 40.75
29 76.84 59 39.38
30 75.71 60 38.01
/s/ SKK /s/ JRC
--------------- -------------
Lessee Initials Lessor Initials
[AT&T LOGO] AT&T
Capital Corporation
MASTER EQUIPMENT LEASE AGREEMENT
COMMENCEMENT CERTIFICATE
================================================================================
LESSEE: HYUNDAI ELECTRONICS AMERICA, INC.
- --------------------------------------------------------------------------------
Street Address: 3101 North First Street
- --------------------------------------------------------------------------------
City/State/Zip: San Jose, CA 95134
================================================================================
================================================================================
LESSOR: AT&T COMMERCIAL FINANCE CORPORATION
- --------------------------------------------------------------------------------
Address: 44 Whippany Road
Morristown, NJ 07962
- --------------------------------------------------------------------------------
Lease
Number:
================================================================================
SCHEDULE NO. IA0 WHICH INCORPORATES BY REFERENCE MASTER EQUIPMENT LEASE
AGREEMENT DATED JANUARY 17, 1997 BETWEEN LESSOR AND LESSEE
================================================================================
Capitalized terms used herein which are not otherwise defined herein shall
have the meanings ascribed to them in the Master Equipment Lease Agreement
between the parties hereto (the Agreement), identified above.
In accordance with the terms and provisions of the Agreement and the
Schedule identified by the Schedule Number specified above, the Lessee hereby
certifies and states that: (a) all Equipment listed in the above referenced
Schedule, as amended through the date hereof (Equipment), has been delivered and
fully installed; (b) Lessee has inspected the Equipment, and all testing as it
deems necessary has been performed by Lessee, the manufacturer or Seller; (c)
Lessee accepts the Equipment for all purposes of the Agreement, the Purchase
Documents and all related documents; (d) on the date hereof, the Equipment has
become for the first time operational and available to be placed in service for
its specifically assigned function; (e) any insurance policies required by
Section 7 of the Agreement have been obtained and are in full force and effect;
and (f) the Equipment is located at the Equipment Location specified in the
Schedule (and such location is also set forth below).
================================================================================
Address for Billing (if different from above):
Equipment Location: 2001 Fortune Drive, San Jose, CA 95131
COMMENCEMENT DATE:
June 18, 1997
------------------
Lessee
BY: /s/ S.K. Kang
-----------------------------
(Lessee Authorized Signature) I Hereby Certify That This is a
True, Correct and Complete
Copy of This Document.
S.K. Kang / Treasurer
- ----------------------------- By: /s/ Anne G. Valk
(Type/Print Name and Title) -------------------------
AMENDMENT NO. 1
TO EQUIPMENT SCHEDULE NO. IA0 DATED JUNE 18, 1997
UNDER MASTER LEASE DATED JANUARY 17, 1997
BETWEEN
AT&T COMMERCIAL FINANCE CORPORATION (Lessor)
AND
HYUNDAI ELECTRONICS AMERICA. INC (Lessee)
Lessor and Lessee hereby agree to amend Equipment Schedule No. IAO as follows:
1. The first paragraph of Section 1 "END OF TERM OPTIONS" is deleted in its
entirety and replaced with the following:
Notwithstanding anything to thc contrary in Section 18 of the Agreement,
Lessee shall have only the following options at the expiration of the
Initial Term of this Schedule: (i) unless Lessor and Tokyo Leasing
(U.S.A.), Inc. (or its assignee) (the "Lender") notifies Lessee, in
writing, to the contrary at least one hundred and eighty (180) days prior
to the expiration of the Initial Term, this Schedule shall automatically
be renewed for an additional twelve (12) month Term at the same monthly
Rental Payment as to all (but not less than all) of the Equipment; or (ii)
if Lessor and Lender do not require this Schedule to automatically renew
for the twelve (12) month Term provided in (i), Lessee must elect either
Option A, Option B, or Option C below at the end of the applicable Term of
this Schedule. Options A, B, and C will remain applicable at the end of
the twelve (12) month automatic renewal shou1d this Schedule be extended.
All other terms and conditions of Equipment Schedule No. IAO shall remain the
same
Effective: August 28, 1997
AT&T COMMERCIAL FINANCE CORPORATION HYUNDAI ELECTRONICS AMERICA, INC.
BY: /s/ John R. Clark BY: /s/ S.K. Kang
------------------------------- -----------------------------
NAME: John R. Clark NAME: S.K. Kang
------------------------------- -----------------------------
TITLE: Corporate Counsel and TITLE: Treasurer
Assistant Secretary
------------------------------- -----------------------------
DATE: 9-2-97 DATE: 8/29/97
------------------------------- -----------------------------
AMENDMENT NO. 2
TO EQUIPMENT SCHEDULE NO. IA0 DATED JUNE 18, 1997
UNDER MASTER LEASE DATED JANUARY 17, 1997
BETWEEN
AFG INVESTMENT TRUST C
AND
MMC TECHNOLOGY, INC.
WHEREAS, AFG Investment Trust C ("Lessor") as Assignee of Newcourt
Commercial Finance Corporation (f/k/a AT&T Commercial Finance Corporation) and
MMC Technology, Inc. ("Lessee") as Assignee of Hyundai Electronics America, Inc.
are parties to the above-referenced Equipment Schedule (the "Agreement"); and
WHEREAS, Lessor and Lessee wish to amend certain terms of the Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, Lessor and Lessee hereby agree to
amend the Agreement as follows:
Section 8 "TAXES" is hereby amended to provide that on Lessor's behalf and as
Lessor's agent, Lessee will file and pay all personal property Taxes imposed
during the Term after the effective date of this Amendment directly to the
applicable taxing authority. Lessee's filing shall be in a manner that
identifies Lessor's Equipment, ownership, and that the Lessee is filing as agent
for the Lessor. Lessee will provide Lessor with a yearly written report
detailing the amount of such personal property Taxes paid, the date and identity
of the taxing authority to which such payments were made, and proof of such
payment. In addition to any indemnity obligation of Lessee hereunder, Lessee
further agrees to indemnify, defend and hold Lessor harmless from and against
any penalty, interest, costs or fees (including, without limitation,
late-filing, non-filing and/or incorrect filing fees or charges) which may be
imposed upon Lessor or the Equipment.
All other terms and conditions of Equipment Schedule No. IAO shall remain the
same.
Effective: January 1, 1999
AFG INVESTMENT TRUST C MMC TECHNOLOGY, INC.
By: AFG ASIT Corporation
Its: Managing Trust
BY: /s/ Gail D. Ofgant BY: /s/ N. Pignati
------------------------------- -----------------------------
NAME: Gail D. Ofgant NAME: N. Pignati
------------------------------- -----------------------------
TITLE: Sr. Vice President TITLE: President
------------------------------- -----------------------------
DATE: DATE: 6-9-99
------------------------------- -----------------------------
TO: Fred Wallace
FROM: Sandra M. Capo
DATE: April 26, 1999
RE: Hyundai Plate-1, TS-2, 1A0 and 1A5 Property Tax
================================================================================
Please confirm by signing this memo below that the attached indemnification
letter from Newcourt Commercial Finance Corporation is acceptable for MMC
Technology, as assigned by Hyundai, to file and pay directly all property tax
expenses for the above Rental Schedules.
Once an fully executed copy of this letter is completed I will give you a copy.
If you have any questions, please do not hesitate to see me. Thanks.
/s/ Frederick T. Wallace
- -----------------------------
Frederick T. Wallace
Director of Tax