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Exhibit 10(o)(1)
MACHINE TOOLS EQUIPMENT SCHEDULE
SCHEDULE NO. 017
DATED THIS JUNE 1, 1997
TO MASTER LEASE AGREEMENT
DATED AS OF AUGUST 21, 1994
Lessor & Mailing Address: Lessee & Mailing Address:
GENERAL ELECTRIC CAPITAL CORPORATION AUTOCAM CORPORATION
1787 SENTRY PARKWAY/WEST ▇▇ ▇▇▇▇▇▇ ▇▇▇▇/▇▇▇▇, ▇▇▇▇▇ ▇▇▇ ▇▇▇▇ ▇. ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Capitalized terms not defined herein shall have the meanings assigned to them
in the Master Lease Agreement identified above ("AGREEMENT"; said Agreement and
this Schedule being collectively referred to as "LEASE").
A. EQUIPMENT
Pursuant to the terms of the Lease, ▇▇▇▇▇▇ agrees to acquire and lease
to Lessee the Equipment listed on Annex A attached hereto and made a part
hereof.
B. FINANCIAL TERMS
1. Advance Rent (if any): $33,982.25.
2. Capitalized Lessor's Cost: $2,795,661.99.
3. Basic Term Lease Rate Factor: .01215535.
4. Daily Lease Rate Factor: .00040518.
5. Basic Term (No. of Months): Ninety-Six (96) Months.
6. Basic Term Commencement Date: June 1, 1997.
7. Equipment Location: ▇▇▇▇ ▇. ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇.
8. Lessee Federal Tax ID No: ▇▇▇▇▇▇▇▇▇.
9. Supplier: Mikron Corp Monroe.
10. Last Delivery Date: _____________________
11. First Termination Date: Thirty-Six (36) months after the Basic Term
Commencement Date.
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C. TAX BENEFITS
Depreciation Deductions:
a. Depreciation Method: 200% declining balance method, switching to
straight line method for the 1st taxable year for which using the
straight line method with respect to the adjusted basis as of the
beginning of such year will yield a larger allowance.
b. Recovery Period: SEVEN (7) YEARS.
c. Basis: 100% of Capitalized Lessor's Cost.
D. TERM AND RENT
1. Interim Rent. For the period from and including the Lease
Commencement Date to the Basic Term Commencement Date ("INTERIM
PERIOD"), Lessee shall pay as rent ("INTERIM RENT") for each unit of
Equipment, the product of the Daily Lease Rate Factor times the
Capitalized Lessor's Cost of such unit times the number of days in the
Interim Period. Interim Rent shall be due on NOT APPLICABLE.
2. Basic Term Rent. Commencing on JUNE 1, 1997 and on the same day of
each month thereafter (each, a "RENT PAYMENT DATE") during the Basic
Term, Lessee shall pay as rent ("BASIC TERM RENT") the product of the
Basic Term Lease Rate Factor times the Capitalized Lessor's Cost of all
Equipment on this Schedule.
3. Adjustment to Capitalized Lessor's Cost. Lessee hereby irrevocably
authorizes Lessor to adjust the Capitalized Lessor's Cost up or down by
no more than ten percent (10%) to account for equipment change orders,
equipment returns, invoicing errors, and similar matters. ▇▇▇▇▇▇
acknowledges and agrees that the Rent shall be adjusted as a result of
such change in the Capitalized Lessor's Cost (pursuant to paragraphs 1
and 2 above). Lessor shall send Lessee a written notice stating the
final Capitalized Lessor's Cost, if different from that disclosed on
this Schedule.
IN WITNESS WHEREOF, ▇▇▇▇▇▇ and ▇▇▇▇▇▇ have caused this Schedule to be executed
by their duly authorized representatives as of the date first above written.
LESSOR: LESSEE:
GENERAL ELECTRIC CAPITAL CORPORATION AUTOCAM CORPORATION
By: By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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Name: Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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Title:
--------------------------- Title: Treasurer
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ATTEST
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
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ADDENDUM
TO SCHEDULE NO. 017
TO MASTER LEASE AGREEMENT
DATED AS OF AUGUST 21, 1994
THIS ADDENDUM (this "ADDENDUM") amends and supplements the above
referenced schedule (the "SCHEDULE") to the above referenced lease (the
"LEASE"), between GENERAL ELECTRIC CAPITAL CORPORATION ("LESSOR") and AUTOCAM
CORPORATION ("LESSEE") and is hereby incorporated into the Schedule as though
fully set forth therein. Capitalized terms not otherwise defined herein shall
have the meanings set forth in the Lease.
For purposes of this Schedule only, the Lease is amended by adding the
following thereto:
EARLY PURCHASE OPTION.
(a) Provided that the Lease has not been earlier terminated and provided
further that Lessee is not in default under the Lease or any other agreement
between Lessor and Lessee, Lessee may, UPON AT LEAST 30 DAYS BUT NO MORE THAN
270 DAYS PRIOR WRITTEN NOTICE TO LESSOR OF LESSEE'S IRREVOCABLE ELECTION TO
EXERCISE SUCH OPTION, purchase all (but not less than all) of the Equipment
listed and described in this Schedule on the rent payment date (the "EARLY
PURCHASE DATE") which is 72 months from the Basic Term Commencement Date of the
Schedule for a price equal to $1,231,098.00 (the "BIV EARLY OPTION PRICE"),
plus all applicable sales taxes on an AS IS BASIS. Lessor and Lessee agree
that the FMV Early Option Price is a reasonable prediction of the Fair Market
Value (as such term is defined in Section XIX(b) hereof) of the Equipment at
the time the option is exercisable. Lessor and Lessee agree that if Lessee
makes any non-severable improvement to the Equipment which increases the value
of the Equipment and is not required or permitted by Sections VII or XI of the
Lease prior to lease expiration, then at the time of such option being
exercised, Lessor and Lessee shall adjust the purchase price to reflect any
addition to the price anticipated to result from such improvement. (The
purchase option granted by this subsection shall be referred to herein as the
"EARLY PURCHASE OPTION".)
(b) If Lessee exercises its Early Purchase Option with respect to the
Equipment leased hereunder, then on the Early Purchase Option Date, Lessee
shall pay to Lessor any Rent and other sums due and unpaid on the Early
Purchase Option Date and Lessee shall pay the FMV Early Option Price, plus all
applicable sales taxes, to Lessor in cash.
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IN WITNESS WHEREOF, ▇▇▇▇▇▇ and ▇▇▇▇▇▇ have caused this Addendum to be executed
by their duly authorized representatives as of the date first above written.
LESSOR: LESSEE:
GENERAL ELECTRIC CAPITAL CORPORATION AUTOCAM CORPORATION
By: By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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Name: Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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Title: Title: Treasurer
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ATTEST
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
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ANNEX A
TO
SCHEDULE NO. 017
TO MASTER LEASE AGREEMENT
DATED AS OF AUGUST 21, 1994
DESCRIPTION OF EQUIPMENT
NUMBER COST
OF UNITS PER UNIT MANUFACTURER SERIAL NUMBERS TYPE AND MODEL OF EQUIPMENT
One (1) $797,306.53 Mikron KA6026M Model CX-24 Rotary
Transfer Machine
One (1) $749,230.58 Mikron KA6027M Model CX-24 Rotary
Transfer Machine
One (1) $596,242.20 Mikron KA6025M Model CX-24 Rotary
Transfer Machine
One (1) $652,882.68 Mikron KA6029M Model CX-24 Rotary
Transfer Machine
The above is a complete list of the equipment and all attachments related to
the equipment.
Initials: /s/ WAV
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Lessor Lessee
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