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EXHIBIT 10.150
[USL CAPITAL LOGO] MASTER LEASE AGREEMENT [FORD FINANCIAL LOGO]
LESSOR: USL CAPITAL CORPORATION LESSEE: Ligand Pharmaceuticals, Inc.
ADDRESS: 000 Xxxxx Xxxxxx ADDRESS: 0000 Xxxxx Xxxxxx Xxxxx
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000 Xxx Xxxxx, XX 00000
TERMS AND CONDITIONS OF LEASE
The undersigned Lessee hereby requests Lessor to purchase the personal property
described in any Equipment Schedule hereunder (herein called "Equipment") from
supplier listed in any Equipment Schedule hereunder (herein called "Vendor"
and/or "Manufacturer", as applicable) and to lease the Equipment to Lessee on
the terms and conditions of the lease set forth below.
Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the
Equipment upon the following terms and conditions:
1. NO WARRANTIES BY LESSOR. Lessee has selected the Equipment and may have
entered into certain purchase, licensing, or maintenance agreements with the
Vendor and/or Manufacturer (herein referred to as an "Acquisition Agreement")
covering the Equipment as further described in Paragraph 26 hereof. If Lessee
has entered into any Acquisition Agreement, each agreement shall provide for
certain rights and obligations of the parties thereto with respect to the
Equipment, and Lessee shall perform all of the obligations set forth in each
Acquisition Agreement as if this lease did not exist. LESSOR MAKES NO WARRANTY,
EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING THE CONDITION OF THE
EQUIPMENT, ITS MERCHANTABILITY OR ITS FITNESS FOR ANY PARTICULAR PURPOSE, AND,
AS TO LESSOR, LESSEE LEASES THE EQUIPMENT "AS IS." LESSOR SHALL HAVE NO
LIABILITY FOR ANY LOSS, DAMAGE OR EXPENSE OF ANY KIND WHATSOEVER RELATING
THERETO, INCLUDING WITHOUT LIMITATION ANY SPECIAL, INDIRECT, INCIDENTAL OR
CONSEQUENTIAL DAMAGES OF ANY CHARACTER.
2. CLAIMS AGAINST VENDOR AND/OR MANUFACTURER. If the Equipment is not properly
installed, does not operate as represented or warranted by Vendor and/or
Manufacturer, or is unsatisfactory for any reason, Lessee shall make any claim
on account thereof solely against Vendor and/or Manufacturer pursuant to the
Acquisition Agreement, if any, and shall, nevertheless, pay Lessor all rent
payable under this lease. All warranties from Vendor and/or Manufacturer are, to
the extent they are assignable, hereby assigned to Lessee for the term of the
lease or until an Event of Default occurs hereunder, for Lessee's exercise at
Lessee's expense. Lessee may directly inquire with Vendor and/or Manufacturer to
receive an accurate and complete statement of such warranties, including any
disclaimers or limitations of such warranties or of any remedies with respect
thereto.
3. VENDOR NOT AN AGENT. Lessee understands and agrees that neither Vendor, nor
any sales representative or other agent of Vendor, is an agent of Lessor. Sales
representatives or agents of Vendor, and persons that are not employed by Lessor
(including brokers and agents) are not authorized to waive or alter any term or
condition of this lease, and no representation as to the Equipment or any other
matter by Vendor or any other person that is not employed by Lessor (including
brokers and agents) shall in any way affect Lessee's duty to pay the rent and
perform its other obligations as set forth in this lease.
4. NON-CANCELLABLE LEASE. This lease and any Equipment Schedule hereto cannot be
cancelled or terminated except as expressly provided herein. Lessee agrees that
its obligation to pay all rent and other sums payable hereunder and the rights
of Lessor in and to such rent are absolute and unconditional and are not subject
to any abatement, reduction, setoff, defense, counterclaim or recoupment due or
alleged to be due to, or by reason of, any past, present or future claims which
Lessee may have against Lessor, any assignee, any Manufacturer or Vendor, or
against any person for any reason whatsoever.
5. ORDERING EQUIPMENT, Lessee shall arrange for delivery of the Equipment so
that it can be accepted in accordance with Paragraph 6 hereof within 90 days
after the date on which Lessor accepts Lessee's offer to enter into this lease
with respect to any Equipment Schedule or by such other date as may be set forth
in an Equipment Schedule or Commitment Letter issued by Lessor as the Commitment
Expiration Date. Unless otherwise specified on the Equipment Schedule, Lessee
shall be responsible for all transportation, packing, installation, testing and
other charges in connection with the delivery, installation and use of the
Equipment. Lessee hereby authorizes Lessor to insert in any Equipment Schedule
hereunder the serial numbers and other identification data of Equipment when
determined by Lessor.
6. ACCEPTANCE. Lessee acknowledges that for purposes of receiving or accepting
the Equipment from Vendor, Lessee is acting on Lessor's behalf. Upon delivery of
the Equipment to Lessee and Lessee's inspection thereof, Lessee shall furnish
Lessor a written statement (a) acknowledging receipt of the Equipment in good
condition and repair and (b) accepting it as satisfactory in all respects for
the purposes of this lease (the "Certificate of Acceptance"). The date of
receipt and acceptance of the Equipment covered by an Equipment Schedule (or
any later date that Lessor chooses) shall be the Rent Commencement Date
therefor. Lessor is authorized to fill in on any Equipment Schedule hereunder
the Rent Commencement Date in accordance with the foregoing.
7. TERMINATION BY LESSOR. If, by the Commitment Expiration Date, the Equipment
described in any Equipment Schedule has not been delivered to Lessee and
accepted by Lessee as provided in Paragraph 6 hereof, or if other conditions of
Lessor's Commitment Letter, if any, have not been met, then Lessor may, at its
option, terminate this lease and its obligations hereunder with respect to such
Equipment Schedule at any time after the expiration of such 90 days or any date
after the Commitment Expiration Date, as applicable. Lessor shall give Lessee
written notice whether or not it elects to exercise such option within 10 days
after Lessor's receipt of Lessee's written request for such notice.
8. TERM. The term of this lease commences upon the Rent Commencement Date, as
provided in Paragraph 9 below. The term shall continue until all of Lessee's
obligations are fulfilled hereunder. The Initial Term with respect to any
Equipment Schedule begins on the Rent Commencement Date for such Equipment
Schedule (as defined in Paragraph 6) and expires after the later of (i) the
number of periods for which the rent payments are due, or (ii) the date Lessee
fulfills all Lessee's obligations hereunder.
9. RENTAL. Lessee shall pay the rent payments as stated on each Equipment
Schedule, the first of which shall be due on the Rent Commencement Date for said
Equipment Schedule, and subsequent payments shall be due on the same day of each
calendar period as indicated on the Equipment Schedule for the balance of the
Initial Term. Rent payments shall be due whether or not Lessee has received any
notice that such payments are due. All rent payments shall be paid to Lessor at
its address set forth on the Equipment Schedule or as otherwise directed by
Lessor in writing.
10. RENEWAL. If no default shall have occurred and be continuing, Lessee shall
be entitled to renew the lease with respect to all, but not less than all, of
the Equipment covered by an Equipment Schedule for a minimum 12 month period at
an amount equal to the fair market rental value thereof, in use and operational,
in the condition required by the lease, payable on a periodic basis, as mutually
agreed by Lessor and Lessee ("Renewal Rent"). Lessee must give Lessor written
notice of its intention to exercise said option, which notice must be received
by Lessor at least 90 days before expiration of the Initial Term. The first
installment of the Renewal Rent shall be due at expiration of the Initial Term
of the lease. Should Lessee fail to comply with the provisions described above
covering Renewal, upon expiration of the Initial Term, the term of the
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lease shall be automatically extended for a term of 3 months. Thereafter, the
term of the lease will be extended for subsequent full month periods, on a month
to month basis, until Lessee has given at least 90 days written notice
terminating the lease. Such termination will take effect upon completion of all
Lessee's obligations under the lease (including payment of all periodic rental
payments due during such 90 day period, as provided in Paragraph 9 of the
lease). At any time after the expiration of the Initial Term, if the lease has
been automatically extended as set forth herein, Lessor reserves the right to
terminate the lease by 30 days written notice to Lessee.
11. LOCATION; INSPECTION; LABELS. The Equipment shall be delivered to and shall
not be removed without Lessor's prior written consent from the "Equipment
Location" shown on the related Equipment Schedule, or if none is specified,
Lessee's billing address shown on the Equipment Schedule. Lessor shall have the
right to inspect the Equipment at any reasonable time. If Lessor supplies Lessee
with labels stating that the Equipment is owned by Lessor. Lessee shall affix
such labels to and keep them in a prominent place on the Equipment.
12. REPAIRS; USE; ALTERATIONS. Lessee, at its own cost and expense, shall keep
the Equipment in good repair and working order, in the same condition as when
delivered to Lessee, reasonable wear and tear excepted, and in accordance with
the manufacturer's recommended specifications; shall use the Equipment lawfully;
shall not alter the Equipment without Lessor's prior written consent; shall use
the Equipment in compliance with any existing Manufacturer's service and
warranty requirements and any insurance policies applicable to the Equipment and
shall furnish all parts and servicing required therefor. All parts, repairs,
additions, alterations and attachments placed on or incorporated into the
Equipment which cannot be removed without damage to the Equipment shall
immediately become part of the Equipment and shall be the property of the
Lessor. Lessee will obtain and maintain all permits, licenses and registrations
necessary to lawfully operate the facility where the Equipment is located.
Lessee shall comply with all applicable environmental and industrial hygiene
laws, rules and regulations (including but not limited to federal, state, and
local environmental protection, occupational, health and safety or similar laws,
ordinances and restrictions). Lessee shall, not later than 5 days after the
occurrence of any event, provide Lessor with copies of any report of such event
that is required to be filed with governmental agencies regulating environmental
claims. Lessee shall immediately notify Lessor in writing of any existing,
pending or threatened investigation, inquiry, claim or action by any
governmental authority in connection with any law, rule or regulation relating
to industrial hygiene or environmental conditions that could affect the
Equipment.
13. MAINTENANCE. If the Equipment is such that Lessee is not normally capable of
maintaining it, Lessee, at its expense, shall enter into and maintain in full
force and effect throughout the Initial Term, and any renewal term, Vendor
and/or Manufacturer's standard maintenance contract, and shall comply with all
its obligations thereunder. An alternate source of maintenance may be used with
Lessor's prior written consent. Such consent shall be granted if, in Lessor's
reasonable opinion, the Equipment will be maintained in an equivalent state of
good repair, condition and working order.
14. SURRENDER. Provided that Lessee does not exercise the purchase option as set
forth in Paragraph 28 hereof, upon the expiration of the Initial Term, or any
renewal term, or upon demand by Lessor made pursuant to Paragraph 22 of the
lease, Lessee, at its expense, shall return all, but not less than all, of the
Equipment by delivering it to such place or on board such carrier, packed for
shipping, as Lessor may specify. Lessee agrees that the Equipment, when
returned, shall be in the same condition as when delivered to Lessee, reasonable
wear and tear excepted, and in a condition which will permit Lessor to be
eligible for Manufacturer's standard maintenance contract without incurring any
expense to repair or rehabilitate such Equipment. Lessee shall be liable for
reasonable and necessary expenses to place the Equipment in such condition.
Lessee shall remain liable for the condition of the Equipment until it is
received and accepted at the destination designated by Lessor as set forth
above. If any items of Equipment are missing or damaged when returned, such
occurrence shall be treated as an event of Loss or Damage with respect to such
missing or damaged items and shall be subject to the terms specified in
Paragraph 15 below. Lessee shall provide Lessor with a Letter of Maintainability
from the Manufacturer of the Equipment, which letter shall state that the
Equipment will be eligible for the Manufacturer's standard maintenance contract
when sold or leased to a third party. Lessee shall give Lessor prior written
notice that it is returning the Equipment as provided above, and such notice
must be received by Lessor at least 90 days prior to such return. Should Lessee
fail to comply with the provisions described above covering surrender, upon
expiration of the Initial Term, the term of the lease shall be automatically
extended for a term of 3 months. Thereafter, the term of the lease will be
extended for subsequent full month periods, on a month to month basis, until
Lessee has given at least 90 days written notice terminating the lease. Such
termination will take effect upon completion of all Lessee's obligations under
the lease (including payment of all periodic rental payments due during such 90
day period, as provided in Paragraph 9 of the lease).
15. LOSS OR DAMAGE. Lessee shall bear the entire risk of loss, theft,
destruction of or damage to the Equipment or any item thereof (herein "Loss or
Damage") from any cause whatsoever. No Loss or Damage shall relieve Lessee of
the obligation to pay rent or of any other obligation under this lease. In the
event of Loss or Damage, Lessee, at the option of Lessor, shall: (a) place the
same in good condition and repair; (b) replace the same with like equipment
acceptable to Lessor in good condition and repair with clear title thereto in
Lessor; or (c) pay to Lessor the total of the following amounts: (i) the total
rent and other amounts due and owing at the time of such payment, plus (ii) an
amount calculated by Lessor which is the present value at 5% per annum simple
interest discount of all rent and other amounts payable by Lessee with respect
to said item from date of such payment to date of expiration of its Initial
Term, plus (iii) the "reversionary value" of the Equipment, which shall be
determined by Lessor as the total cost of the Equipment less 60% of the total
rent (net of sales/use taxes, if any) required to be paid pursuant to Paragraph
9. Upon Lessor's receipt of such payment, Lessee and/or Lessee's insurer shall
be entitled to Lessor's interest in said item, for salvage purposes, in its then
condition and location, "as-is", without any warranty, express or implied.
16. INSURANCE. Lessee shall provide, maintain and pay for (a) all risk property
insurance against the loss or theft of or damage to the Equipment, for the full
replacement value thereof, naming Lessor as a loss payee, and (b) commercial
general liability insurance (and if Lessee is a doctor, hospital or other health
care provider, medical malpractice insurance). All such policies shall name
Lessor as an additional insured and shall have combined single limits in amounts
acceptable to Lessor. All such insurance policies shall be endorsed to be
primary and non-contributory to any policies maintained by Lessor. In addition,
Lessee shall cause Lessor to be named as an additional insured on any excess or
umbrella policies purchased by Lessee. A copy of each paid-up policy evidencing
such insurance (appropriately authenticated by the insurer) or a certificate of
the insurer providing such coverage proving that such policies have been issued,
providing the coverage required hereunder shall be delivered to Lessor prior to
the Rent Commencement Date. All insurance shall be placed with companies
satisfactory to Lessor and shall contain the insurer's agreement to give 30 days
written notice to Lessor before cancellation or any material change of any
policy of insurance.
17. TAXES. Lessee shall reimburse to Lessor (or pay directly if, but only if,
instructed by Lessor) all charges and taxes (local, state and federal) which may
now or hereafter be imposed or levied upon the sale, purchase, ownership,
leasing, possession or use of the Equipment, excluding, however, all income
taxes levied on (a) any rental payments made to Lessor hereunder, (b) any
payment made to Lessor in connection with Loss or Damage to the Equipment under
Paragraph 15 hereof, or (c) any payment made to Lessor in connection with
Lessee's exercise of its purchase option under Paragraph 28 hereof.
18. LESSOR'S PAYMENT. If Lessee fails to provide or maintain said insurance, to
pay said taxes, charges and fees, or to discharge any levies, liens and
encumbrances created by Lessee, Lessor shall have the right, but shall not be
obligated, to obtain such insurance, pay such taxes, charges and fees, or effect
such discharge. In that event, Lessee shall remit to Lessor the cost thereof
with the next rent payment.
19. INDEMNITY. (a) GENERAL INDEMNITY. Lessee shall indemnify Lessor against and
hold Lessor harmless from any and all claims, actions, damages, costs, expenses
including reasonable attorneys' fees, obligations, liabilities and liens
(including any of the foregoing arising or imposed under the doctrines of
"strict liability" or "product liability" and including without limitation the
cost of any fines, remedial action, damage to the environment and cleanup and
the fees and costs of consultants and experts), arising out of the manufacture,
purchase, lease, ownership, possession, operation, condition, return or use of
the Equipment, or by operation of law, excluding however, any of the foregoing
resulting from the sole negligence or willful misconduct of Lessor. Lessee
agrees that upon written notice by Lessor of the assertion of such a claim,
action, damage, obligation, liability or lien, Lessee shall assume full
responsibility for the defense thereof. Lessee's choice of counsel shall be
mutually acceptable to both Lessee and Lessor. This indemnity also extends to
any environmental claims arising out of or relating to prior acts or omissions
of any party whatsoever. The provisions of this paragraph shall survive
termination of this lease with respect to events occurring prior to such
termination. (b) TAX INDEMNITY. Lessee acknowledges that Lessor shall be
entitled to all tax benefits of ownership with respect to the Equipment (the
"Tax Benefits"), including but not limited to, (i) the accelerated cost
recovery deductions determined in accordance with Section 168(b)(1) of the
Internal Revenue Code of 1986 for the Equipment based on the original cost of
the Equipment to Lessor (ii) deductions for interest on any indebtedness
incurred by Lessor to finance the Equipment and (iii) sourcing of income and
losses attributable to this lease to the United States. Lessee represents that
the Equipment shall be depreciable for Federal tax purposes utilizing the
MACRS Recovery Period as set forth in the Equipment Schedule, with such
depreciation commencing
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as of the date of Equipment acceptance by Lessee as set forth on the Certificate
of Acceptance. Lessee agrees to take no action inconsistent with the foregoing
or any action which would result in the loss, disallowance or unavailability to
Lessor of all or any part of the Tax Benefits. Lessee hereby indemnifies and
holds harmless Lessor and its assigns from and against (i) the loss,
disallowance, unavailability or recapture of all or any part of the Tax Benefits
resulting from any action, statement, misrepresentation or breach of warranty or
covenant by Lessee of any nature whatsoever including but not limited to the
breach of any representations, warranties or covenants contained in this
paragraph, plus (ii) all interest, penalties, fines or additions to tax
resulting from such loss, disallowance, unavailability or recapture, plus (iii)
all taxes required to be paid by Lessor upon receipt of the indemnity set forth
in this paragraph. Any payments made by Lessee to reimburse Lessor for lost Tax
Benefits shall be calculated (i) on the assumption that Lessor is subject to the
maximum Federal Corporate Income Tax with respect to each year and that all Tax
Benefits are currently utilized, and (ii) without regard to whether Lessor or
any members of a consolidated group of which Lessor is also a member is then
subject to any increase in tax as a result of the loss of Tax Benefits. For the
purposes of this paragraph, "Lessor" includes for all tax purposes the
consolidated taxpayer group of which Lessor is a part. (c) PAYMENT. The amounts
payable pursuant to this Paragraph 19 shall be payable upon demand of Lessor,
accompanied by a statement describing in reasonable detail such claim, action,
damage, cost, expense, fee, obligation, liability, lien or tax and setting forth
the computation of the amount so payable, which computation shall be binding and
conclusive upon Lessee, absent manifest error. The indemnities and assumptions
of liabilities and obligations contained in this Paragraph 19 shall continue in
full force and effect notwithstanding the expiration or other termination of
this Lease.
20. ASSIGNMENT. Without Lessor's prior written consent, Lessee shall not assign,
transfer, pledge, hypothecate or otherwise dispose of this lease, the Equipment,
or any interest therein. Lessee's interest in this lease may not be assigned or
transferred by operation of law without Lessor's prior written consent, which
will not be unreasonably withheld. Without Lessor's prior written consent,
Lessee shall not sublet or lend the Equipment or permit it to be used by anyone
other than Lessee or Lessee's employees. Lessor may assign this lease in whole
or in part without notice to Lessee. If Lessee is given notice of such
assignment it agrees to acknowledge receipt thereof in writing. Each such
assignee shall have all of the rights, but none of the obligations, of Lessor
under this lease. Lessee shall not assert against assignee any defense,
counterclaim or offset that Lessee may have against Lessor. Notwithstanding any
such assignment, Lessor warrants that Lessee shall quietly enjoy use of the
Equipment subject to the terms and conditions of this lease so long as Lessee is
not in default hereunder. Subject to the foregoing, this lease inures to the
benefit of and is binding upon the successors and assigns of the parties hereto.
21. DELINQUENT PAYMENTS. (a) Service Charge. Since it would be impractical or
extremely difficult to fix Lessor's actual damages for collecting and accounting
for a late payment, if any payment to Lessor required herein (including, but not
limited to, rental, renewal, tax, purchase and other amounts) is not paid on or
before its due date, Lessee shall pay to Lessor an amount equal to 5% of any
such late payment. (b) Interest. Lessee shall also pay interest on any such late
payment from the due date thereof until the date paid at the lesser of 18% per
annum or the maximum rate allowed by law
22. DEFAULT; REMEDIES. Any of the following shall constitute an Event of
Default: If a) Lessee fails to pay when due any rent or other amount required
herein to be paid by Lessee, or b) Lessee makes an assignment for the benefit of
creditors, whether voluntary or involuntary, or c) a petition is filed by or
against Lessee under any bankruptcy, insolvency or similar legislation, or d)
Lessee violates or fails to perform any provision of either this lease or any
Acquisition Agreement, or violates or fails to perform any covenant or
representation made by Lessee herein, or e) Lessee makes a bulk transfer of
furniture, furnishings, fixtures or other equipment or inventory, or f) Lessee
ceases doing business as a going concern or there is a change in the legal
structure of ownership of Lessee, or a consolidation or merger of Lessee into or
with another entity, which results, in the opinion of Lessor, in a material
adverse change in Lessee's ability to perform its obligations under the lease,
or g) any representation or warranty made by Lessee in this lease or in any
other document or agreement furnished by Lessee to Lessor shall prove to have
been false or misleading in any material respect when made or when deemed to
have been made. An Event of Default with respect to any Equipment Schedule shall
constitute an Event of Default for all Equipment Schedules. Lessee shall
promptly notify Lessor of the occurrence of any Event of Default.
If an Event of Default occurs, Lessor shall have the right to exercise any
one or more of the following remedies in order to protect the interests and
reasonably expected profits and bargains of Lessor: a) Lessor may terminate this
lease with respect to all or any part of the Equipment, b) Lessor may recover
from Lessee all rent and other amounts then due and as they shall thereafter
become due hereunder, c) Lessor may take possession of any or all items of
Equipment, wherever the same may be located, without demand or notice, without
any court order or other process of law and without liability to Lessee for any
damages occasioned by such taking of possession, and any such taking of
possession shall not constitute a termination of this lease, d) Lessor may
recover from Lessee, with respect to any and all items of Equipment, and with or
without repossessing the Equipment the sum of (1) the total amount due and owing
to Lessor at the time of such default, plus (2) an amount calculated by Lessor
which is the present value at 5% per annum simple interest discount of all rent
and other amounts payable by Lessee with respect to said item(s) from date of
such payment to date of expiration of its Initial Term, plus (3) the
"reversionary value" of the Equipment, which shall be determined by Lessor as
the total cost of the Equipment less 60% of the total rent (net of sales/use
taxes, if any) required to be paid pursuant to Paragraph 9; and which the
parties agree is a reasonable estimate of such value; and upon the payment of
all amounts described in clauses (1), (2) and (3) above, Lessee will become
entitled to the Equipment AS IS, WHERE IS, without warranty whatsoever;
provided, however, that if Lessor has repossessed or accepted the surrender of
the Equipment, Lessor shall sell, lease or otherwise dispose of the Equipment in
a commercially reasonable manner, with or without notice and on public or
private bid, and apply the net proceeds thereof (after deducting all expenses,
including attorneys' fees incurred in connection therewith), to the sum of (1),
(2) and (3) above, and e) Lessor may pursue any other remedy available at law or
in equity, including but not limited to seeking damages or specific performance
and/or obtaining an injunction.
No right or remedy herein conferred upon or reserved to Lessor is exclusive
of any right or remedy herein or by law or equity provided or permitted; but
each shall be cumulative of every other right or remedy given hereunder or now
or hereafter existing at law or in equity or by statute or otherwise, and may be
enforced concurrently therewith or from time to time, but Lessor shall not be
entitled to recover a greater amount in damages than Lessor could have gained by
receipt of Lessee's full, timely and complete performance of its obligations
pursuant to the terms of this lease plus accrued delinquent payments under
Paragraph 21.
23. LESSOR'S EXPENSE. Lessee shall pay Lessor all costs and expenses, including
reasonable attorneys' fees and the fees of collection agencies, incurred by
Lessor in enforcing any of the terms, conditions, or provisions hereof or in
protecting Lessor's rights herein. Lessee's obligation hereunder includes all
such costs and expenses expended by Lessor (a) prior to filing of an action, (b)
in connection with an action which is dismissed, and (c) in the enforcement of
any judgment. Lessee's obligation to pay Lessor's attorneys' fees incurred in
enforcing any judgment is a separate obligation of Lessee, severable from
Lessee's other obligations hereunder, which obligation will survive such
judgment and will not be deemed to have been merged into such judgment.
24. OWNERSHIP; PERSONAL PROPERTY. The Equipment shall at all times remain the
property of Lessor and Lessee shall have no right, title or interest therein or
thereto except as expressly set forth in this lease and the Equipment shall at
all times be and remain personal property notwithstanding that the Equipment or
any part thereof may now be, or hereafter become, in any manner, affixed or
attached to real property or any improvements thereon.
25. NOTICES. Service of all notices under this lease shall be sufficient if
given personally or mailed to the respective party at its address set forth on
any Equipment Schedule, or at such address as either party may provide in
writing from time to time. Any such notice mailed to said address shall be
effective when deposited in the United States mail, duly addressed and with
postage prepaid.
26. ACQUISITION AGREEMENTS. If the Equipment is subject to any Acquisition
Agreement, Lessee, as part of this lease, transfers and assigns to Lessor all of
its rights, but none of its obligations (except for Lessee's obligation to pay
for the Equipment conditioned upon Lessee's acceptance in accordance with
Paragraph 6), in and to the Acquisition Agreement, including but not limited to
the right to take title to the Equipment. Lessee shall indemnify and hold Lessor
harmless in accordance with Paragraph 19 from any liability resulting from any
Acquisition Agreement as well as liabilities resulting from any Acquisition
Agreement Lessor is required to enter into on behalf of Lessee or with Lessee
for purposes of this lease.
27. UPGRADES. Any existing lease between Lessor and Lessee subject to an
"upgrade" program shall continue in full force and effect and shall be kept free
of default by Lessee (even if the equipment covered by the existing lease is
sold, traded-in, etc.) until any such existing lease is cancelled by Lessor
when, if applicable, the new Equipment is accepted by Lessee for all purposes of
this lease.
28. PURCHASE OPTION. If no default shall have occurred and be continuing, Lessee
shall be entitled, at its option upon written notice to Lessor, which notice
must be received by Lessor at least 90 days prior to the end of either the
Initial Term or any renewal term of any Equipment Schedule, to purchase all, but
not less than all, of the Equipment covered by such Equipment
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Schedule from Lessor at the end of the Initial Term or any renewal term for such
Equipment Schedule at a purchase price equal to the then fair market value of
the Equipment in use and operational, in the condition required by the lease,
as mutually agreed by Lessor and Lessee. On a date which is no later than the
expiration date of the Initial Term or any renewal term, as applicable, Lessee
shall pay to Lessor the purchase price for the Equipment covered by such
Equipment Schedule (plus any taxes levied thereon) and Lessor shall sell the
Equipment "as-is where-is" without any warranties expressed or implied.
29. RELATED EQUIPMENT SCHEDULES. In the event that any Equipment Schedule
hereunder shall include Equipment that may become attached to, affixed to, or
used in connection with Equipment covered under another Equipment Schedule
hereunder ("Related Equipment Schedule"), Lessee acknowledges the following:
(a) if Lessee elects to exercise a purchase option or renewal option under any
Equipment Schedule, if provided; or (b) if Lessee elects to return the Equipment
under any Equipment Schedule as described in Paragraph 14, then Lessor, at its
discretion, may require the similar disposition of all Related Equipment
Schedules as provided for by this lease.
30. MISCELLANEOUS. This instrument and any Commitment Letter issued by Lessor
and any Equipment Schedule hereunder constitutes the entire agreement between
Lessor and Lessee, and shall not be amended, altered or changed except by a
written agreement signed by the parties hereto, and in the case of Lessor, such
agreement shall not be valid unless executed by Lessor at Lessor's home office.
To the extent any provision of this lease may be determined to be invalid or
unenforceable, it shall be ineffective without affecting the other provisions of
this lease. To the extent permitted by applicable law, Lessee hereby waives any
provisions of law which render any provision of this lease unenforceable in any
respect. Unless specified otherwise, in the event such written agreement is
attached to and made a part of an Equipment Schedule, the terms and conditions
of said written agreement shall apply only to said Equipment Schedule and shall
not apply to any other Equipment Schedule attached to and made a part of this
lease. In the event Lessee issues a purchase order to Lessor covering Equipment
to be leased hereunder, it is agreed that such purchase order is issued for
purposes of authorization and Lessee's internal use only, and none of its terms
and conditions shall modify the terms and conditions of this lease and/or
related documentation, or affect Lessor's responsibility to Lessee as defined in
this lease. An executed Equipment Schedule that incorporates by reference the
terms of this Master Lease Agreement, marked "Original," shall be the original
of the lease for the Equipment described therein for all purposes. All other
executed counterparts of the lease shall be marked "Duplicate." To the extent
the lease constitutes chattel paper, as such term is defined in the Uniform
Commercial Code of the applicable jurisdiction, no security interest in the
lease may be created through the transfer of possession of any counterpart
other than the Original of the lease. Lessor reserves the right to charge
Lessee fees for its provision of additional administrative services related to
the lease requested by Lessee. Lessee shall provide Lessor with such corporate
resolutions, opinions of counsel, financial statements, and other documents
(including documents for filing or recording) as Lessor may request from time
to time. LESSEE REPRESENTS AND WARRANTS THAT ALL CREDIT AND FINANCIAL
INFORMATION SUBMITTED TO LESSOR HEREWITH OR AT ANY OTHER TIME IS TRUE AND
CORRECT. LESSEE HEREBY APPOINTS LESSOR OR ITS ASSIGNEE ITS TRUE AND LAWFUL
ATTORNEY IN FACT TO EXECUTE ON BEHALF OF LESSEE ALL UNIFORM COMMERCIAL CODE
FINANCING STATEMENTS OR OTHER DOCUMENTS WHICH, IN LESSOR'S DETERMINATION, ARE
NECESSARY TO SECURE LESSOR'S INTEREST IN SAID EQUIPMENT. The filing of UCC
Financing Statements is precautionary and shall not be evidence that the lease
is intended as security. If for any reason this agreement is determined not to
be a lease, Lessee hereby grants Lessor a security interest in the lease, the
Equipment or collateral pertaining thereto and the proceeds thereof, including
re-lease, sale or disposition of the Equipment or other collateral. If more than
one Lessee is named in this lease, the liability of each shall be joint and
several. Time is of the essence with respect to this lease. Lessee represents
and warrants that the Equipment is being leased hereunder for business purposes.
The descriptive headings which are used in this lease are for convenience of the
parties only and shall not affect the meaning of any provision of the lease. Any
failure of the Lessor to require strict performance by the Lessee or any waiver
by Lessor of any provision herein shall not be construed as a consent or waiver
of any other breach of the same or of any other provision. This agreement shall
be governed by the laws of the state of California (without giving effect to
principles of conflicts of law thereof).
31. LESSEE'S REPRESENTATIONS; WAIVER OF JURY TRIAL. Lessee represents and
warrants, as of the date of this lease: (a) Lessee is duly organized, validly
existing and in good standing under the laws of the state of its incorporation
or organization, and is duly qualified to do business wherever necessary to
carry on its present business and operations and to own its property; (b) this
lease (and any Equipment Schedule entered into pursuant to this lease) has been
duly authorized by all necessary action on the part of the Lessee, duly executed
and delivered by authorized officers or agents of Lessee, does not require any
further shareholder or partner approval, does not require the approval of, or
the giving notice to, any federal, state, local or foreign governmental
authority, does not contravene any law binding on Lessee or contravene any
certificate or articles of incorporation or by-laws or partnership certificate
or agreement, or any agreement, indenture or other instruments to which Lessee
is a party or by which it or any of its assets or property may be bound; (c)
this lease (and any Equipment Schedule entered into pursuant to this lease)
constitutes the legal, valid and binding obligation of Lessee and is enforceable
in accordance with its terms; (d) all credit and financial information, and all
other information submitted to Lessor at any time is true and correct, and there
does not exist any pending or threatened action or proceeding before any court
or administrative agency which might materially adversely affect Lessee's
financial condition or operations; (e) Lessee agrees to furnish to Lessor
(i) as soon as available, and in any event within 120 days after the last day
of each fiscal year of Lessee, a copy of the financial statements of Lessee as
of the end of such fiscal year, certified by an independent certified public
accounting firm; (ii) at any time if requested by Lessor, a copy of quarterly
financial statements certified by the principal financial officer of Lessee;
and (iii) such additional information concerning Lessee as Lessor may
reasonably request. LESSEE AND LESSOR HEREBY WAIVE THE RIGHT TO TRIAL BY JURY
OF ANY MATTERS ARISING OUT OF THIS LEASE OR ANY OTHER AGREEMENT EXECUTED IN
CONNECTION HEREWITH.
32. COMMITMENT FEE REQUIREMENT. Lessee agrees, with respect to each transaction,
to pay the commitment fee specified in Lessor's proposal for such transaction or
in the Equipment Schedule related thereto. This commitment fee is given in
consideration for Lessor's costs and expenses in investigating and appraising
and/or establishing credit for Lessee. This commitment fee shall not be refunded
unless Lessor declines to accept Lessee's offer to enter into the lease. Upon
Lessor's acceptance of Lessee's offer to enter into the lease, unless otherwise
specified in the proposal or Equipment Schedule, the amount shall be applied to
the first period's rent payment. Lessee acknowledges that Lessor's act of
depositing any commitment fee into Lessor's bank account shall not in itself
constitute Lessor's acceptance of Lessee's offer to enter into the lease.
IN WITNESS WHEREOF, the parties have executed this Master Lease Agreement
effective as of the first date it is executed by Lessee below.
USL CAPITAL CORPORATION (LESSOR) LIGAND PHARMACEUTICALS, INC. (LESSEE) TITLE DATE
BY BY
Name /s/ Xxxxxx Xxx X /s/ Xxxx X. Xxxxx VP & CFO 5/30/96
----------------------------------- ------------------------- -------- -------
Title Manager BY
----------------------------------- X
------------------------- -------- -------
Business Unit BEF
--------------------------
-------------------------(CO-LESSEE) TITLE DATE
HOME XXXXXX 000 XXXXX XXXXXX,
XXX XXXXXXXXX XX 00000 (415) 627-9000 BY
X
Not valid unless executed by Lessor at ------------------------- -------- -------
Lessor's home office.
5
[USL CAPITAL LOGO] EXHIBIT B [FORD FINANCIAL LOGO]
AMENDMENT TO EQUIPMENT SCHEDULE(S) DATED 5/30/96
TO MASTER LEASE AGREEMENT ("LEASE")
BETWEEN
USL CAPITAL CORPORATION ("LESSOR")
AND
Ligand Pharmaceuticals, Inc. ("LESSEE")
With respect to the above referenced Equipment Schedule(s) only, the
terms and conditions of the Lease shall be modified as follows:
Lessee and Lessor hereby agree that the rent payments shown on the
Equipment Schedule shall be adjusted if, for the week preceding the week in
which the Equipment is accepted for purposes of the Lease, the weekly average of
the Three-Year Treasury Note interest rate as specified in the Federal Reserve
statistical release H.15 is greater than or less than 5.10%, and said variance
is at least equal to one quarter of one percent (.25%), then the rent payments
will be adjusted so that for each one one-hundredth of one percent (.01%)
increase or decrease in the aforementioned Treasury interest rate, all rent
payments shall be increased or decreased by .0199%.
IN WITNESS WHEREOF, the parties have executed this Amendment to Lease
effective as of the date set forth above.
USL CAPITAL CORPORATION (LESSOR) LESSEE SIGNATURE TITLE
BY BY
X /s/ Xxxxxx Xxx BEF X /s/ Xxxx X. Xxxxx VP & CFO
--------------------------------------------- -------------------------------- ----------
TITLE BUSINESS UNIT BY
X Manager X
--------------------------------------------- -------------------------------- ----------
HOME OFFICE; 000 XXXXX XXXXXX, XXX XXXXXXXXX, XX 00000 CO-LESSEE SIGNATURE TITLE
Not valid unless executed by Lessor at Lessor's home office BY
X
-------------------------------- ----------
6
[USL CAPITAL LOGO] EXHIBIT E [FORD FINANCIAL LOGO]
AMENDMENT TO EQUIPMENT SCHEDULE DATED _________
TO MASTER LEASE AGREEMENT DATED 5/30/96 ("LEASE")
BETWEEN
USL CAPITAL CORPORATION ("LESSOR") AND
LIGAND PHARMACEUTICALS, INC. ("LESSEE")
With respect to the above referenced Equipment Schedule(s) only, the terms and
conditions of the Lease shall be modified as follows:
Provided that no Event of Default shall have occurred and be continuing, Lessee
shall be entitled, at its option upon 90 days prior written notice to Lessor, to
purchase all but not less than all of the Equipment covered by the Lease,
effective as of the calendar day which falls exactly 6/1/99 or 36 months after
the Rent Commencement Date by paying the Early Purchase Option Amount shown
below:
After Rent Payment (#) Early Purchase Option Amount (%)*
36 43.47%
%
*The Early Purchase Option Amount is calculated by multiplying the Early
Purchase Option percentage by Lessor's cost of the Equipment as set forth on the
Equipment Schedule.
On the date of such purchase Lessee shall pay to Lessor the Early Purchase
Option Amount for the Equipment covered by the Lease (plus any taxes levied
thereon, including all property taxes on the Equipment attributable to lien
dates occurring on or prior to the date of such purchase) and upon receipt of
the Early Purchase Option Amount, Lessor shall convey all of its right, title
and interest in and to the Equipment "AS-IS WHERE-IS" without any warranties
expressed or implied.
In the event that Lessee elects to exercise the option as set forth herein (and
provided that all of the conditions set forth have been met), Lessee shall have
no further obligations to pay rent to Lessor under the Lease. In the event that
Lessee does not exercise the option as of the effective dates set forth above
(or in the event that the conditions as set forth herein have not been met) the
Lease shall continue in full force and effect.
Lessor and Lessee agree that the Early Purchase Option Amount shall be subject
to adjustment on the Rent Commencement Date in order to preserve Lessor's
anticipated yield by compensating for the fact that by virtue of Lessee's
exercise of this Early Purchase Option Lessor will not receive the Rent due
during the last twelve or 12 rental periods.
Except as amended hereby, the Lease shall remain in full force and effect. In
the event of any conflict between the Lease and this Amendment to Lease, the
Amendment to Lease shall govern.
IN WITNESS WHEREOF, the parties have executed this Amendment to Lease effective
as of the first date set forth above.
USL CAPITAL CORPORATION (LESSOR) LESSEE SIGNATURE TITLE
BY BY
X /s/ Xxxxxx Xxx BEF X /s/ Xxxx X. Xxxxx VP & CFO
--------------------------------------------- -------------------------------- ----------
TITLE BUSINESS UNIT BY
X Manager X
--------------------------------------------- -------------------------------- ----------
HOME OFFICE; 000 XXXXX XXXXXX, XXX XXXXXXXXX, XX 00000 CO-LESSEE SIGNATURE TITLE
Not valid unless executed by Lessor at Lessor's home office BY
X
-------------------------------- ----------
7
[USL CAPITAL LOGO] EXHIBIT F [FORD FINANCIAL LOGO]
AMENDMENT TO EQUIPMENT SCHEDULE(S) DATED
TO MASTER LEASE AGREEMENT ("LEASE")
BETWEEN
USL CAPITAL CORPORATION ("LESSOR")
AND
LIGAND PHARMACEUTICALS, INC ("LESSEE")
With respect to the above referenced Equipment Schedule(s) only, the
terms and conditions of the Lease shall be modified as follows:
Provided that no Event of Default shall have occurred and be continuing,
Lessee shall have the option, which shall not be assignable, to cancel the Lease
("Cancellation Option"), effective as of the calendar day which falls exactly 24
months after the Rent Commencement Date ("Option Date") of the Lease, so long as
the following conditions are satisfied as of the Option Date:
1. Lessee shall have paid to Lessor on or prior to the Option Date (i) all
rental payments due under the Lease as of the Option Date, (ii) all
property taxes on the Equipment attributable to lien dates occurring on
or prior to the Option Date, and (iii) all other amounts due Lessor as
of the Option Date.
2. Lessee shall have notified Lessor, by certified mail, of its election to
exercise the Cancellation Option, addressing such notice to the
attention of "Manager, BEF Customer Service, 000 Xxxxx Xxxxxx, Xxx
Xxxxxxxxx, Xxxxxxxxxx 00000", not less than ninety (90) days prior to
the Option Date. Lessor shall have no obligation to notify Lessee
further of the opportunity to exercise this Cancellation Option.
3. Lessee shall have paid, in addition to the monthly rentals in (1) above,
a cancellation fee equal to 50% of the original cost of the Equipment
as set forth on the Equipment Schedule, and at Lessee's risk and expense
shall have loaded the Equipment, properly packed for shipment, on board
the carrier and delivered to such location as Lessor shall specify, all
to be completed on or before the Option Date. As of the Option Date, the
Lessee shall also provide Lessor with a Letter of Maintainability from
the manufacturer of the Equipment, which letter shall state that the
Equipment will be eligible for the manufacturer's standard maintenance
contract when sold or leased to a third party.
In the event that Lessee elects to exercise the Cancellation Option as
set forth herein (and provided that all of the conditions set forth have been
met), the Lease shall be terminated and Lessee shall have no further obligations
to pay rent to Lessor under the Lease. In the event that Lessee does not
exercise the Cancellation Option as of the Option Date (or in the event that the
conditions as set forth herein have not been met) the Lease shall continue in
full force and effect.
Except as amended hereby, the Lease shall remain in full force and
effect. In the event of any conflict between the Lease and this Amendment to
Lease, the Amendment to Lease shall govern.
IN WITNESS WHEREOF, the parties have executed this Amendment to Lease
effective as of the date set forth above.
USL CAPITAL CORPORATION (LESSOR) LESSEE SIGNATURE TITLE
BY BY
X /s/ Xxxxxx Xxx BEF X /s/ Xxxx X. Xxxxx VP & CFO
--------------------------------------------- -------------------------------- ----------
TITLE BUSINESS UNIT BY
X Manager X
--------------------------------------------- -------------------------------- ----------
HOME OFFICE; 000 XXXXX XXXXXX, XXX XXXXXXXXX, XX 00000 CO-LESSEE SIGNATURE TITLE
Not valid unless executed by Lessor at Lessor's home office BY
X
-------------------------------- ----------
8
[USL CAPITAL LOGO] EXHIBIT S [FORD FINANCIAL LOGO]
AMENDMENT
TO EQUIPMENT SCHEDULE/CERTIFICATE OF ACCEPTANCE DATED
5/30/96
TO MASTER LEASE AGREEMENT DATED 5/30/96 (THE "LEASE")
BETWEEN
USL CAPITAL CORPORATION ("LESSOR")
AND
LIGAND PHARMACEUTICALS INC. ("LESSEE")
With respect to the above-referenced Equipment Schedule/Certificate of
Acceptance (the "Equipment Schedule") only, the terms and conditions of the
Lease shall be modified as follows:
A. In the introductory paragraph, the words "(herein called "Equipment")
from supplier" are deleted and be replaced by the words:
"(such personal property being referred to herein individually as an
"Item" or "Item of Equipment" and collectively as "Equipment") from
Lessee or the supplier or suppliers".
B. Paragraph 4, NON-CANCELLABLE LEASE, of the Lease is amended by adding
the following new sentence at the end thereof:
"The foregoing provisions of this Paragraph 4, however, do not
constitute a waiver of any remedy which Lessee may have in damages
against Lessor or any other person."
C. Paragraphs 5, 6, 7, 8 and 26 of the Lease are deleted and replaced by
the following paragraphs:
5. ORDERING AND PAYMENT FOR EQUIPMENT. Lessee shall arrange for
delivery of, and payment for, the Equipment so that it can be sold and leased
back in accordance with Paragraph 6 hereof on or before the Commitment
Expiration Date set forth in the Equipment Schedule or Approval Letter. Lessee
hereby authorizes Lessor to insert in the Equipment Schedule hereunder the
serial numbers and other identification data of the Equipment when determined by
Lessor.
6. ACCEPTANCE; SALE AND LEASEBACK. On a monthly basis, provided Lessee
has accumulated and paid invoices in the aggregate totalling at least $200,000,
Lessee shall present the originals of all such invoices to Lessor together with
proof of payment and shall deliver to Lessor an Indenture and Xxxx of Sale, in
form satisfactory to Lessor (a "Xxxx of Sale"), and such other documents as
Lessor shall require to transfer title to the Items of Equipment covered by such
invoices to Lessor. Subject to the terms and conditions hereof, upon receipt by
Lessor of an executed Equipment Schedule/Certificate of Acceptance, in form
satisfactory to Lessor (an "Equipment Schedule"), pertaining to such Items of
Equipment, Lessor shall purchase such Items from Lessee and lease them back to
Lessee as provided in the Equipment Schedule. Final Equipment Schedule may be
less than $200,000.
7. TERMINATION BY LESSOR. If (a) one or more Items of Equipment have
not been delivered to, and paid for by, Lessee and sold to, and leased back
from, Lessor on or before the Commitment Expiration Date as provided in
Paragraphs 5 and 6 hereof, or (b) on or prior to any date on which Lessor is to
purchase any Item of Equipment, an event occurs or a condition or circumstance
arises that, in Lessor's sole judgment, could result in a material adverse
change in the Lessee's business, condition (financial or other), performance,
operations, properties or prospects, or could impair in any material respect
Lessee's ability to perform its obligations under the Lease, Lessor may, at its
option, by giving written notice to Lessee, terminate any and all of its
obligations to Lessee with respect to the Items of Equipment referred to in
clause (a) and in the case of an event, condition or circumstance referred to in
clause (b), terminate any and all of its obligations to Lessee with respect to
any and all Items of Equipment not previously made subject to an Equipment
Schedule.
8. TERM; COMMENCEMENT. The term of the lease with respect to an Item of
Equipment commences upon the date of Lessor's execution of the Equipment
Schedule pertaining thereto (the "Rent Commencement Date"). Lessor is authorized
to fill in on the Equipment Schedule the Rent Commencement Date in accordance
with the foregoing. The term shall continue until all Lessee's obligations are
fulfilled hereunder, unless sooner terminated. The Initial Term of the lease
with respect to an Item of Equipment begins on the Rent Commencement Date for
such Item and expires after the number of periods for which the rent payments
are due.
9
26. ACQUISITION AGREEMENTS. If the Items of Equipment described in any
Equipment Schedule are subject to any Acquisition Agreement between Lessee and
the Vendor and/or Manufacturer, Lessee shall indemnify and hold Lessor harmless
in accordance with Paragraph 19 from any liability resulting from any
Acquisition Agreement.
D. Paragraph 17, TAXES, of the Lease is amended by adding the following
new sentence at the end thereof:
"Lessee certifies that, for purposes of California Revenue and Taxation
Code Section 6010.65, the date of the first functional use of each Item
of Equipment is the date of such use set forth in the Equipment
Schedule/Certificate of Acceptance with respect to such Item ("First
Functional Use Date"). Lessee hereby acknowledges and agrees that in the
event, as to any Item, the Rent Commencement Date occurs more than
ninety (90) days after the First Functional Use Date, Lessor shall pay
and Lessee shall reimburse Lessor for sales taxes assessed on Lessor's
purchase of such Item from Lessee."
E. Paragraph 19(a), INDEMNITY, General Indemnity, of the Lease is amended
by deleting the word "sole" appearing in the exclusion clause at the end of the
first sentence and replacing it with the word "culpable".
Except as amended hereby, the Lease shall remain in full force and
effect. In the event of any conflict between the Lease and this Amendment to
Equipment Schedule, this Amendment to Equipment Schedule shall govern.
IN WITNESS WHEREOF, the parties have executed this Amendment to
Equipment Schedule effective as of the date it is executed by Lessor below.
USL CAPITAL CORPORATION LIGAND PHARMACEUTICALS INC TITLE
BY BY
X /s/ Xxxxxx Xxx X /s/ Xxxx X. Xxxxx VP & CFO
--------------------------------------------- -------------------------------- ----------
TITLE BUSINESS UNIT BY
X Manager BEF X
--------------------------------------------- -------------------------------- ----------
HOME OFFICE; 000 XXXXX XXXXXX, XXX XXXXXXXXX, XX 00000 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX TITLE
Not Valid unless executed by Lessor at Lessor's home office BYXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
DATE: 5/30/96 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
------------------------------- -------------------------------- ----------
2
10
[USL CAPITAL LOGO] INDENTURE AND XXXX OF SALE [FORD FINANCIAL LOGO]
This Indenture and Xxxx of Sale, dated the 30th day of May, 1996, from
Ligand Pharmaceuticals, Inc., a corporation hereinafter called "Seller" to USL
CAPITAL CORPORATION, hereinafter called "Buyer".
WITNESSETH
For valuable consideration, the receipt of which is hereby acknowledged,
Seller does hereby sell, assign, transfer, convey and deliver to Buyer all
property and equipment of whatsoever kind or character listed, described or
otherwise referred to in "Exhibit A" (the "Equipment"), a copy of which
Exhibit A is attached hereto and incorporated herein by this reference
with the same force and effect as set forth herein in full.
Seller covenants and warrants that:
A. It is the owner of, and has absolute title to, all the Equipment
free and clear of all claims, liens, encumbrances and all other defects of title
of any kind whatsoever.
B. It has not made any prior sale, assignment or transfer of any item
of said Equipment to any person, entity, firm or corporation.
C. It has the present right, power and authority to sell, assign and
transfer each and every item of said Equipment to Buyer.
D. Each and every item of said Equipment is in good repair, condition
and working order.
E. All acts, proceedings and things necessary and required by laws and
the articles of incorporation and by-laws of Seller and agreements or judgements
binding upon Seller to make this Indenture and Xxxx of Sale a valid, binding and
legal obligation of Seller have been done, taken and have happened; and the
execution and delivery hereof have in all respects been duly authorized in
accordance with law and said articles of incorporation and by-laws.
Seller shall forever warrant and defend the sale, assignment, transfer,
conveyance and delivery of each and every item of said Equipment to Buyer, its
successors and assigns, against each and every person whomsoever lawfully
claiming the same.
Possession of said Equipment shall not be transferred to Buyer but shall
be retained by Seller, it being the intention of Buyer to lease said Equipment
to Seller.
This Indenture and Xxxx of Sale is binding upon the successors and
assigns of Seller and inures to the benefit of the successors and assigns of
Buyer.
IN WITNESS WHEREOF the undersigned Seller has caused this instrument to
be executed on the day and year first above appearing, by and through an officer
thereunto duly authorized.
Ligand Pharmaceuticals, Inc., (SELLER)
-----------------------------------------
By /s/ Xxxx X. Xxxxx
--------------------------
Title VP & CFO
------------------------
------------------------
11
EXHIBIT A TO INDENTURE AND XXXX OF SALE
FROM LIGAND PHARMACEUTICALS, INC.
TO USL CAPITAL CORPORATION
DATED 5/30/96
-------
/s/ Xxxx X. Xxxxx
Equipment Location:
----------------------------------------
00000 Xxxxxxx Xxxxxx XX.
Xxx Xxxxx, XX 00000 ----------------------------------------
0000 Xxxx Xxxxxx Xxxxx
Xxx Xxxxx, XX 00000
Glycomed
000 Xxxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Equipment Description:
Laboratory and manufacturing process and computers as more fully described in
the attached equipment list.
12
[USL CAPITAL LOGO] EXHIBIT X [FORD FINANCIAL LOGO]
AMENDMENT TO EQUIPMENT SCHEDULE DATED 5/30/96
TO MASTER LEASE AGREEMENT ("LEASE")
BETWEEN
USL CAPITAL CORPORATION ("LESSOR")
AND
LIGAND PHARMACEUTICALS, INC. ("LESSEE")
With respect to the above referenced Equipment Schedule only, the terms
and conditions of the Lease shall be modified as follows:
1. For purposes of the above-referenced Equipment schedule only, Lessee
shall have the following options at the end of the initial term. Notwithstanding
any provision contained in the Lease to the contrary, upon the expiration of the
Initial Term and payment by Lessee of all rental payments and other amounts due
under the Lease, and provided that no Event of Default shall have occurred and
be continuing, Lessee shall have the option, upon written notice to Lessor at
least ninety (90) days prior to the expiration of the Initial Term, to (1)
purchase all, but not less than all, of the Equipment covered under the Lease,
(the "Purchase Option") for an amount equal to 20% of the original cost of the
Equipment set forth on the Equipment Schedule (the "Equipment Cost") or (2)
return the Equipment to Lessor (the "Return Option"). If Lessee exercises the
Return Option, in addition to returning the equipment to Lessor, Lessee will pay
Lessor, on the expiration date of the Initial Term, an amount equal to 10% of
the Equipment Cost. If Lessee desires Lessor to finance the Purchase Option,
Lessee will include a request therefore in its notice of exercise, and Lessor
will finance the Purchase Option over a period of 12 months, with monthly
payments equal to 1.7442% of the original Equipment Cost. In the event of, and
as a condition to, such Lessor financing, Lessee and Lessor will enter into an
Amendment to the Equipment Schedule, in the form attached hereto, to reflect
such financing.
For softcosts and/or Software, (the "Products"), at the end of the
Initial Term, Lessee must either (1) purchase the Products for an amount equal
to 20% of the original cost of the Products as set forth on the Equipment
Schedule; or 2) renew the Lease for and Extension Term of 12 months at a
monthly rental amount equal to 1.7442% of the original Product cost, as set
forth on the Equipment Schedule. There is no return option. All notices required
and payments due shall be made in accordance with the terms of the lease. Upon
expiration of the Extension Term as set forth above, Lessee shall have the
option to purchase the Products for one dollar ($1.00).
The notices to Lessor relative to Lessee's exercise of any of the
foregoing options should be sent by certified mail to:
USL Capital Corporation
Manager, BEF Customer Service
000 Xxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Except as amended hereby, the Lease shall remain in full force and
effect. In the event of any conflict between the Lease and this Amendment to
Equipment Schedule, the Amendment to Equipment Schedule shall govern.
IN WITNESS WHEREOF, the parties have executed this Amendment to
Equipment Schedule as of the date set forth above.
USL CAPITAL CORPORATION (LESSOR) LESSEE SIGNATURE TITLE
BY BY
X Xxxxxx Xxx BEF X /s/ Xxxx X. Xxxxx VP & CFO
--------------------------------------------- -------------------------------- ----------
TITLE BUSINESS UNIT BY
X Manager X
--------------------------------------------- -------------------------------- ----------
HOME OFFICE; 000 XXXXX XXXXXX, XXX XXXXXXXXX, XX 00000 CO-LESSEE SIGNATURE TITLE
Not valid unless executed by Lessor at Lessor's home office BY
X
-------------------------------- ----------
13
AMENDMENT DATED 5/30/96 (THIS "AMENDMENT")
TO
EQUIPMENT SCHEDULE DATED 5/30/96 (THE "SCHEDULE")
TO
MASTER LEASE AGREEMENT DATED 5/30/96 (THE "MASTER LEASE")
BETWEEN
USL CAPITAL CORPORATION ("LESSOR")
AND
LIGAND PHARMACEUTICALS INC. ("LESSEE")
Lessor is financing Lessee's exercise of the Purchase Option referred to
in Exhibit X to the Schedule (the "Financing"). In that connection, this
Amendment amends only the Schedule in the following respects, so that the Master
Lease, and the Schedule insofar as it pertains to the Equipment (not soft costs
or software) and for purposes only of the Financing, when taken together, will
be converted to and will comprise a lease creating a security interest.
NOW, THEREFORE, the parties agree, with respect to the Master Lease only
as it pertains to the Schedule and only for purposes of the Financing, as
follows:
A. Xxxxxxxxx 00, Xxxxxxx, is deleted.
B. Paragraph 11, Location; Inspection; Labels, is amended by (i) renaming
it "Location; Inspection" and (ii) deleting the last sentence.
C. Paragraph 12, Repairs; Use; Alterations, is amended by replacing the
second sentence with the following:
"All parts, repairs, additions, alterations and attachments placed
on or incorporated into the Equipment shall immediately become
part of the Equipment and subject to Lessor's first priority
security interest hereunder."
D. Paragraph 14, Surrender, is amended to read in its entirety as follows:
"14. SURRENDER. If Lessor rightfully demands possession of the
Equipment pursuant to this lease or otherwise, Lessee, at its
expense, shall return all, but not less than all, of the Equipment
by delivering it to such place or on board such carrier, packed
for shipping, as Lessor may specify. Lessee agrees that the
Equipment, when returned, shall be in the same condition as when
delivered to Lessee, reasonable wear and tear excepted, and in a
condition which will permit Lessor to be eligible for
Manufacturer's standard maintenance contract without incurring any
expense to repair or rehabilitate the Equipment. Lessee shall be
liable for reasonable and necessary expenses to place the
Equipment in such condition. Lessee shall remain liable for the
condition of the Equipment until it is received and accepted at the
destination designated by Lessor as set forth above. If any items of
Equipment are missing or damaged when returned, such occurrence
shall be treated as an event of Loss or Damage with respect to
such missing or damaged items and shall be subject to the terms
specified in Paragraph 15 below."
14
E. Paragraph 15, Loss or Damage, is amended by
(i) replacing clause (b) with the following:
"(b) replace the same with like equipment acceptable to Lessor
in good condition and repair, subject to Lessor's first priority
security interest hereunder;"; and
(ii) replacing the last sentence with the following:
"Upon Lessor's receipt of such payment, Lessor shall release the
security interest that it holds in the Equipment."
F. Pursuant to Paragraph 17, Lessor directs Lessee, after Lessor's funding
of the transaction, to make all payments of taxes with respect to the
Equipment or this transaction (except tax payments based upon Lessor's
net income).
G. Paragraph 19(b), Tax Indemnity, is deleted.
H. Paragraph 22, Default; Remedies, is amended by adding at the end of the
second paragraph the following:
"and exercising all rights and remedies of a secured party under
the Uniform Commercial Code."
I. Paragraph 24, Ownership; Personal Property, amended to read in its
entirety as follows:
"24. OWNERSHIP; PERSONAL PROPERTY. The Equipment shall be the
property of Lessee, subject to Lessor's first priority security
interest, and shall at all times be and remain personal property
notwithstanding that the Equipment or any part thereof may now be,
or hereafter become, in any manner, affixed or attached to real
property or any improvements thereon."
J. Paragraph 26, Acquisition Agreements, is amended by deleting the first
sentence.
K. Xxxxxxxxx 00, Xxxxxxxx Option, is amended to read in its entirety as
follows:
"28. RELEASE OF SECURITY INTEREST. If no default shall have
occurred and be continuing, and if Lessee has paid all amounts due
hereunder, Lessor shall release the security interest that it
holds in the Equipment."
L. Paragraph 29, Related Equipment Schedules, is amended by replacing
clause (b) with the following:
"(b) if the Equipment under any Equipment Schedule is returned
under Paragraph 14,".
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M. Paragraph 30, Miscellaneous, is amended by replacing the 12th sentence
(immediately following the sentences in ALL CAPITALS) with the
following:
"This lease is a lease creating a security interest, not a true
lease, and shall be deemed to be a security agreement. Lessee
hereby grants to Lessor a first priority security interest in this
lease, the Equipment, other collateral pertaining thereto and the
proceeds thereof, including the re-lease, sale or other disposition
of the Equipment or other collateral."
Except as amended hereby for purposes of the Financing only, the Master
Lease and the Schedule shall remain in full force and effect in accordance with
their terms. In the event of any conflict between the Lease and this Amendment,
for purposes of the Financing this Amendment shall govern.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date set forth above.
USL CAPITAL CORPORATION (LESSOR) LIGAND PHARMACEUTICALS INC. (LESSEE)
BY Xxxxxx Xxx
--------------------------------- X /s/ Xxxx X. Xxxxx Title: VP & CFO
--------------------------------- -------------------------- ---------
Title: Manager Business Unit: BEF X Title:
-------- ----- -------------------------- ---------
HOME OFFICE: 000 XXXXX XXXXXX, XXX XXXXXXXXX,XX 00000
Not valid unless executed by Lessor at Lessor's home office
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