Acwen Corp. is a U.S. company that owns equipment that is regularly leased to
construction companies. Bentley Inc. is the lessee on a new four-year lease, which
qualifies as an operating lease for both parties.
Lease Agreement
[Excerpts]
This Lease Agreement ("Agreement") is entered into by and between Acwen Corp.
("Lessor"), and Bentley Inc. ("Lessee"). Lessor and Lessee are collectively referred to
in this Agreement as the "Parties." This Agreement shall be effective as of the date
executed by the Lessor, as set forth below.
For the covenants contained herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. Asset: The leased assets shall be equipment leased by the Lessee and leased
from the Lessor. Lessor leases the assets to the Lessee on the terms and
conditions set forth herein. The equipment has a carrying value of $400,000 at the
time of the lease, a useful life of eight (8) years, and no salvage value.
2. Term: The term of this Agreement shall be a period of four (4) years, beginning on
January 1, Year 1, and ending on December 31, Year 4. Any holding over after the
expiration or earlier termination of the term without Lessor's prior written consent
shall be a default of this Agreement.
5. Lease Value/Semiannual Payments: The lease payments to be paid by Lessee
to the Lessor will be thirty thousand dollars ($30,000) every six months for the
duration of the lease, with payments to be made on June 30 and December 31
each year. The payments will be based on an annual interest rate of 4.35%.
12
.
Entire Agreement: This document constitutes the entire agreement and may be
modified or amended only by written agreement signed by both Parties. There are
no oral agreements between the Parties.
Present Value Factors
PV of an annuity of $1 at 4.35% for 4 periods 3.60015
PV of an annuity of $1 at 2.175% for 8 periods 7.27053
PV of $1 at 4.35% for 4 periods 0.84339
PV of $1 at 2.175% for 8 periods 0.84187