1
EXHIBIT 10.7
MANDATORY PURCHASE OPTION LETTER
WHEREAS, Saddleback Financial Corporation ("Lessor"), may have for sale
the property ("Equipment") described under the Lease Agreement No.10973-00697
dated _______________.
WHEREAS, CRL NETWORK SERVICES, INC. ("Lessee") desires to acquire by
purchase, title to the Equipment; and
WHEREAS, the parties hereto desire to reduce to writing the conditions
under which Lessee will purchase Equipment and to fix the time and price to such
purchase;
NOW THEREFORE, the parties hereto, in consideration of the premises and
covenants hereinafter contained, agree as follows:
1. Lessee hereby irrevocably agrees to purchase the Equipment upon the
expiration of the Lease at a Price of $13,256.00 ("Purchase Price") plus any
applicable taxes, filing and documentation costs.
In the event the Lease is terminated in accordance with its terms,
Xxxxxx agrees to pay Lessor the Purchase Price in addition to all other amounts
payable to Lessor as a result of said termination.
2. A demand for purchase of the Equipment may be made by Lessor or its
successors and assigns at any time after the expiration of the Lease in which
event, the effective date for Purchase of the Equipment shall be the first (1st)
day of the month after such demand or such other date as may be mutually agreed
upon between Lessor or its successors and assigns and Lessee. THE EQUIPMENT
SHALL BE SOLD TO LESSEE AND POSSESSION MADE AVAILABLE TO LESSEE "AS IS'; IT
BEING EXPRESSLY UNDERSTOOD THAT XXXXXX AND ITS SUCCESSORS AND ASSIGNS MAKE NO
REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED. INCLUDING BUT NOT LIMITED TO
ANY WARRANTY OF FITNESS FOR ANY PARTICULAR OR OTHER PURPOSE, MERCHANTABILITY, OR
PATENT INFRINGEMENT. NOTWITHSTANDING THE FOREGOING, LESSOR OR ITS SUCCESSORS AND
ASSIGNS REPRESENT AND WARRANT THAT IT OR THEY HAVE GOOD AND MERCHANTABLE TITLES
TO THE EQUIPMENT AND CAN CONVEY SAME TO LESSEE FREE AND CLEAR OF ANY SUPERIOR
LIEN OR ENCUMBRANCE. LESSEE IS LIABLE FOR ANY TAXES PAYABLE AS A RESULT OF THIS
SALE OF EQUIPMENT.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day, month, and year indicated below.
Accepted and Agreed to: Accepted and Agreed to:
(LESSOR) (LESSEE)
SADDLEBACK FINANCIAL CORPORATION CRL NETWORK SERVICES, INC.
By: By:/S/ XXXXX X. XXXXX
------------------------------ ------------------------------
XXXXX X. XXXXX, PRESIDENT
Date: Date: 6/12/1997
---------------------------
