LEASE PURCHASE AGREEMENT
Customer/Lessee: Silverado Green Fuel Inc., dba Silverado Gold Mines Inc.
Dealer/Lessor: Airport Equipment Rentals, Inc.
By signing below the customer hereby accepts the provisions of this agreement
and agrees that the equipment is in good working order and well suited to it's
intended purposes. The equipment as specified on "schedule A" which is
attached. The dealer agrees to deliver the equipment as specified in the terms
and conditions of a separate invoice.
The dealer is the owner of the equipment until such time as the customer has
performed all payment responsibilities of this agreement. The equipment shall
mean all presently owned parts and after-acquired parts, accessories, tools,
equipment, additions, substitutions, attachments, accessories, and replacements
for the equipment whether now owned or hereafter acquired.
This shall also man any insurance proceeds from the equipment to any other
party. The dealer may (but does not have to) file a UCC for information or
security interest purposes in this equipment in order to maintain ownership and
interest in the equipment.
Payments: For value received the customer agrees to pay to the dealer at 0000
Xxx Xxxx Xx Xxxxxxxxx Xxxxxx as follows:
- One payment of $550,000 due upon signing of this agreement (which may
include deposits on equipment orders in process). Wire instructions:
Airport Equipment Rentals, Inc. @ Northrim Bank account #XXXXXXXXXX (wire
transfer desk), aba #XXXXXXXXX
- One payment of $100,000 due on or before 12-01-03.
- 24 equal payments of an amount to be determined. The amount of the payment
shall be determined based on the amount of the equipment and other expenses
added into this lease. The payment shall be of an amount sufficient to
amortize the balance over the 24 payments.
The starting principle amount of this lease shall be determined by taking all
equipment invoices (as signed by the customer) and adding them to any additional
expenses (approved by both parties). This figure will be the basis of the
lease. The payments will then be reduced by 85% in order to determine the
actual amount amortizing the lease.
Grace period: Any payment not made within 10 days of the due date shall carry
after maturity interest at 1.5% per month. In addition, a late charge equal to
5% of the amount delinquent shall be assessed.
Default: In the event of default of this agreement the customer agrees to pay
reasonable attorneys fees necessary to collect this obligation. In addition,
the customer shall pay all reasonable costs associated with repossession,
storage, holding, advertising, selling or otherwise deposing of the equipment in
relation to this agreement and the collection of this obligation, as well as any
other obligation of the customer to the dealer.
The customer agrees to keep the equipment at the general location on the invoice
and shall only remove the equipment from that location with the written consent
of the dealer. In no event shall the customer be entitled to remove the
equipment from the State of Alaska.
The customer shall carry proper and necessary insurance on the equipment at all
times. The insurance shall list the dealer as the loss payee, or to the
dealer's assignee (upon notification from the dealer).
The customer shall keep the equipment in good working order and shall be
responsible for all maintenance necessary toward that end. In the event that
the equipment is not being properly maintained the dealer shall have the right
to perform the service and charge the customer the associated cost related to
that service. This determination shall be made by the dealer after notification
of the failure to service and 10 days waiting period given to customer to
correct the problem.
This agreement shall be payable in United States currency and subject to the
provisions and laws of the State of Alaska. Any dispute or default under this
agreement shall be subject to those laws.
Accepted and agreed this 11th day of Oct. 2002
Customer: Silverado Green Fuel Inc. dba Silverado Gold Mines Inc.
By /s/ Xxxxxx X. Xxxxxxxxx Title: President
Dealer: Airport Equipment Rentals, Inc. By: /s/ Xxxxx Xxxxxx
THIS IS TO CERTIFY THAT ON THIS THE 11TH DAY OF OCTOBER, 2002, BEFORE ME THE
UNDERSIGNED NOTARY PUBLIC IN AND FOR THE STATE OF ALASKA, DULY COMMISSIONED TO
ME KNOWN TO BE THE INDIVIDUALS MENTIONED IN AND WHO EXECUTED THE FOREGOING, AND
ACKNOWLEDGED TO ME THEY SIGNED AND SEALED IT AS THEIR FREE AND VOLUNTARY ACT AND
DEED.
/s/ Xxxxx X. Kirochmer
----------------------------------------
NOTARY PUBLIC IN AND FOR THE STATE OF ALASKA
MY COMMISSION EXPIRES: 7/2/05
