EXHIBIT 10.2
PURCHASE OPTION AMENDMENT TO EQUIPMENT LEASE
THIS AMENDMENT IS MADE AS OF THIS DATE, December 1, 2002, by and between
LEASE FINANCE GROUP, INC. ("Lessor") and INFINITE GRAPHICS INCORPORATED
("Lessee").
WITNESSETH THAT:
WHEREAS, Lessor and Lessee are parties to a certain Lease Agreement dated
December 1, 2002 (the "Equipment Lease") and a certain Schedule to Lease
Agreement No. 1 (the "Schedule"); and
WHEREAS, the parties hereto desire to amend certain of the terms of the
Schedule as hereinafter provided.
NOW, THEREFORE, in consideration of the premises and the mutual obligations
hereinafter contained and for other good and valuable consideration, the receipt
whereof is hereby acknowledged, the parties hereto agree as follows:
1. Notwithstanding any provision contained in the Equipment Lease or the
Schedule to the contrary, upon expiration of the lease term set forth in the
Schedule (the "Initial Lease Term") and payment by Lessee of all rentals set
forth in the Schedule, and provided that no Event of Default (as defined in the
Equipment Lease) shall have occurred and be occurring and continuing, Lessee, at
its option, may purchase all of Lessor's right, title and interest in and to
all, but not less than all, of the equipment described in and covered by the
Schedule (the "Equipment") for a purchase price equal to the greater of (a) the
then Fair Market Value of the Equipment determined as hereinafter provided, or
(b) 15% of the original cost of the Equipment. In order to exercise such option,
Lessee shall notify Lessor in writing of Lessee's intention to exercise such
option at least ninety (90) days prior to the expiration of the Initial Lease
Term and shall deliver to Lessor on or before the expiration of the Initial
Lease Term the appraisal referred to in Paragraph 2 hereof and payment of the
purchase price in cash or by certified or bank cashier's check.
2. For the purposes of Paragraph 1 hereof, "Fair Market Value" of the
Equipment shall be determined by an independent third party appraiser selected
by Lessee. The appraiser's report shall be in writing and delivered to Lessor in
accordance with the preceding paragraph. All fees and expenses of the appraiser
shall be paid by Lessee.
3. If the Lessee for any reason does not purchase the Equipment in
accordance with Paragraph 1 hereof, the lease term set forth in the Schedule
applicable to the Equipment shall automatically and without further action on
the part of the Lessor and Lessee be extended for an additional term of twelve
(12) months at a rental payment equal to $10,950.00, with the first such rental
being due and payable by Lessee on December 1, 2007. Upon expiration of the
extended lease term, the Lessee shall be obligated to return the Equipment to
Lessor in accordance with the terms of Equipment Lease.
4. Except as amended hereby, the Equipment Lease and the Schedule shall
remain in full force and effect, and are in all respects hereby ratified and
affirmed.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their duly sworn officers authorized as of the day and year first
above written.
LESSOR: LESSEE:
LEASE FINANCE GROUP, INC. INFINITE GRAPHICS INCORPORATED
By By /s/ Xxxxxxxx X. Xxxxxxx, Xx.
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Its Its CEO
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