Sample Business Contracts

Master Lease Agreement - Mercedes-Benz Credit Corp. and ABF Freight System Inc.

Free Customizable Lease Forms

  • Commercial Lease. Start a state-specific lease for the rental of commercial property. Specify the term and rent due, as well as whether the landlord or tenant is responsible for property taxes, insurance, and maintenance and repairs.
  • Commercial Sublease. When a tenant vacates commercial property before the lease term has expired, it may be able to rent the premises to a third party. The tenant would be the sublessor and the third party would be the sublessee. Besides preparing a sublease, both parties will want to review the provisions for assignment or subletting in the original lease agreement between the landlord and the sublessor.
  • Sublease Agreement. Tenants of residential property should prepare a sublease agreement if they are seeking to sublease a room or the entire apartment or house to a third party. All parties should review the original lease agreement to see if there are any restrictions on subletting or assigning the premises.
  • Triple Net Lease. Triple net leases are a type of commercial leases where the tenant has to pay for property taxes, insurance, utilities, and maintenance, in addition to the monthly rent.
  • Office Space Lease. When renting an office space, tenants should understand the amount of the rent and duration of the lease. Other important terms include whether the space can be subleased, which parties are responsible for maintenance, and whether any furniture and furnishings will be provided.

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                             MASTER LEASE AGREEMENT

         THIS MASTER LEASE AGREEMENT, dated as of April 16, 1999 ("Agreement"),
between Mercedes-Benz Credit Corporation, with an office at 1011 Warrenville
Road, Suite 600, Lisle IL 60532 (hereinafter called, together with its
successors and assigns, if any, "Lessor"), and ABF Freight System, Inc., a
corporation organized and existing under the laws of the State of Delaware with
its mailing address and chief place of business at 3801 Old Greenwood Road, Fort
Smith, AR 72903 (hereinafter called "Lessee"). WITNESSETH:


(a) Subject to the terms and conditions set forth below, Lessor agrees to lease
to Lessee, and Lessee agrees to lease from Lessor, the equipment ("Equipment")
described in Annex A to any schedule hereto ("Schedule"). Terms defined in a
schedule and not otherwise defined herein shall have the meanings ascribed to
them in such Schedule. (b) The obligation of Lessor to purchase Equipment from
the manufacturer or supplier thereof ("Supplier") and to lease the same to
Lessee under any Schedule shall be subject to receipt by Lessor, prior to the
Lease Commencement Date (with respect to such Equipment), of each of the
following documents in form and substance satisfactory to Lessor: (i) a Schedule
relating to the Equipment then to be leased hereunder, (ii) paid in full invoice
or other evidence of ownership of the Equipment, (iii) evidence of insurance
which complies with the requirements of Section IX, and (iv) such other
documents as Lessor may reasonably request. As a further condition to such
obligations of Lessor, Lessee shall, upon delivery of such Equipment (but not
later than the Last Delivery Date specified in the applicable Schedule) execute
and deliver to Lessor a Certificate of Acceptance (in the form of Annex C to the
applicable Schedule) covering such Equipment. Lessor hereby appoints Lessee its
agent for inspection and acceptance of the Equipment from the Supplier. Upon
execution by Lessee of any Certificate of Acceptance, the Equipment described
thereon shall be deemed to have been delivered to, and irrevocably accepted by,
Lessee for lease hereunder.


(a) The rent payable hereunder and Lessee's right to use the Equipment shall
commence on the date of execution by Lessee of the Certificate of Acceptance for
such Equipment ("Lease Commencement Date"). The term of this Agreement shall be
the period specified in the applicable Schedule. If any term is extended, the
word "term" shall be deemed to refer to all extended terms, and all provisions
of this Agreement shall apply during any extended terms, except as may be
otherwise specifically provided in writing. (b) Rent shall be paid to Lessor at
its address stated above, except as otherwise directed by Lessor. Payments of
rent shall be in the amount set forth in, and due in accordance with, the
provisions of the applicable Schedule. If one or more Advance Rentals are
payable, such Advance Rental shall be (i) set forth on the applicable Schedule,
(ii) due upon acceptance by Lessor of such Schedule, and (iii) when received by
Lessor, applied to the first rent payment and the balance, if any, to the final
rental payment(s) under such

<PAGE>   2

Schedule. In no event shall any Advance Rental or any other rent payments be
refunded to Lessee. If rent is not paid within ten (10) days of its due date,
Lessee agrees to pay a late charge of five cents ($0.05) per dollar on, and in
addition to, the amount of such rent but not exceeding the lawful maximum, if


Lessee shall have no liability for taxes imposed by the United States of America
or any State or political subdivision thereof which are on or measured by the
net income of Lessor. Lessee shall report (to the extent that it is legally
permissible) and pay promptly all other taxes, fees and assessments due,
imposed, assessed or levied against any Equipment (or the purchase, ownership,
delivery, leasing, possession, use or operation thereof), this Agreement (or any
rentals or receipts hereunder), any Schedule, Lessor or Lessee by any foreign,
federal, state or local government or taxing authority during or related to the
term of this Agreement, including, without limitation, all license and
registration fees, and all sales, use, personal property, excise, gross
receipts, franchise, stamp or other taxes, imposts, duties and charges, together
with any penalties, fines or interest, thereon (all hereinafter called "Taxes").
Lessee shall (i) reimburse Lessor upon receipt of written request for
reimbursement for any Taxes charged to or assessed against Lessor, (ii) on
request of Lessor, submit to Lessor written evidence of Lessee's payment of
Taxes, (iii) send a copy thereof to Lessor.


(a) Lessee will notify Lessor in writing, within ten (10) days after any tax or
other lien shall attach to any Equipment, of the full particulars thereof and of
the location of such Equipment on the date of such notification. (b) Lessee will
within 90 days of the close of each fiscal year of Lessee, deliver to Lessor,
Lessee's balance sheet and profit and loss statement, certified by a recognized
firm of certified public accountants. Upon request Lessee will deliver to Lessor
quarterly, within 90 days of the close of each fiscal quarter of Lessee, in
reasonable detail, copies of Lessee's quarterly financial report certified by
the chief financial officer of Lessee. (c) Lessee will permit Lessor to inspect
any Equipment during normal business hours. (d) Lessee will keep the Equipment
at the Equipment location (specified in the applicable schedule) and will
promptly notify Lessor of any relocation of the Equipment. Upon the written
request of Lessor, Lessee will notify Lessor forthwith in writing of the
location of any Equipment as of the date of such notification. (e) Within 60
days after any request by Lessor, Lessee will furnish a certificate of an
authorized officer of Lessee stating that he has reviewed the activities of
Lessee and that, to the best of his knowledge, there exists no default (as
described in Section XI) or event which with notice or lapse of time (or both)
would become such a default.


(a) All Equipment shall be shipped directly from the Supplier to Lessee. (b)
Lessee agrees that the Equipment will be used by Lessee solely in the conduct of
its business and in a manner complying with all applicable federal, state, and
local laws and regulations. (c) LESSEE SHALL NOT ASSIGN, MORTGAGE, SUBLET OR

<PAGE>   3

Equipment free and clear of all liens and encumbrances other than those which
are granted in favor of or result from acts of Lessor.


(a) Lessee will, at its sole expense, maintain each unit of Equipment in good
operating order, repair, condition and appearance in accordance with
manufacturer's recommendations, normal wear and tear excepted. Lessee shall, if
at any time requested by Lessor, affix in a prominent position on each unit of
Equipment plates, tags or other identifying labels showing ownership thereof by
Lessee and Lessor's security interest therein. (b) Lessee will not, without the
prior consent of Lessor, affix or install any accessory, equipment or device on
any Equipment if such addition will impair the originally intended function or
use of such Equipment. All additions, repairs, parts, supplies, accessories,
equipment, and devices furnished, attached or affixed to any Equipment which are
not readily removable shall be made only in compliance with applicable law; and
shall become subject to the lien of Lessor. Lessee will not, without the prior
written consent of Lessor and subject to such conditions as Lessor may impose
for its protection, affix or install any Equipment to or in any other personal
or real property. (c) Any alterations or modifications to the Equipment that
may, at any time during the term of this Agreement, be required to comply with
any applicable law, rule, or regulation shall be made at the expense of Lessee.


Lessee shall use its best efforts to promptly notify Lessor in writing if any
unit of Equipment shall be or become worn out, lost, stolen, destroyed,
irreparably damaged in the reasonable determination of Lessee, or permanently
rendered unfit for use from any cause whatsoever (such occurrences being
hereinafter called "Casualty Occurrences"). On the rental payment date next
succeeding a Casualty Occurrence (the "Payment Date"), Lessee shall pay Lessor
the sum of (x) the Stipulated Loss Value of such unit calculated as of the
rental payment date next preceding such Casualty Occurrence ("Calculation
Date"); and (y) all rental and other amounts which are due hereunder as of the
Payment Date. Upon payment of all sums due hereunder, the term of this lease as
to such unit shall terminate and (except in the case of the loss, theft, or
complete destruction of such unit) provided no event of default shall have
occurred and be continuing hereunder, Lessee shall be entitled to possession of
such unit.


Lessee hereby assumes and shall bear the entire risk of any loss, theft, damages
to, or destruction of, any unit of Equipment from any cause whatsoever from the
time the Equipment is shipped to Lessee.


Unless (and then only to the extent) waived by Lessor in writing, Lessee shall,
at its own expense, keep all Equipment insured for casualty loss for such
amounts and against such

<PAGE>   4

hazards as Lessor may require, including, but not limited to, insurance for
damage to or loss of such Equipment and liability coverage for personal
injuries, death or property damage, with Lessor named as additional insured on
the liability coverage and with a loss payable clause in favor of Lessor as
regards physical damage coverage and as its interest may appear, irrespective of
any breach of warranty or other act or omission of Lessee. The insurance shall
provide (i) liability coverage in an amount equal to at least ONE MILLION U.S.
DOLLARS ($1,000,000.00) total liability per occurrence, and (ii) casualty
coverage in an amount equal at a minimum to the Stipulated Loss Value or the
full replacement cost of the Equipment; or at such other amounts as may be
required by Lessor. Any such policies shall be with companies, and on terms,
mutually satisfactory to Lessor and Lessee. Upon Lessor's declaration, Lessee
agrees to deliver to Lessor evidence of insurance satisfactory to Lessor. No
insurance shall be subject to any co-insurance clause. Lessee hereby appoints
Lessor as Lessee's attorney-in-fact to make proof of loss and claim for damages
and to receive payment of and execute or endorse all documents, checks or drafts
in connection with such claims for damage. Any expense of Lessor in adjusting or
collecting insurance shall be borne by Lessee. Said policies shall provide that
the insurance may not be altered or cancelled by the insurer until after thirty
(30) days written notice to Lessor. Lessor may, at its option, apply any
proceeds of insurance, in whole or in part, to (i) repair or replace Equipment
or any portion thereof, or (ii) satisfy any obligation of Lessee to Lessor


(a) Subject to the provisions of Section XX of this Lease, upon any expiration
or termination of this Agreement or any Schedule, Lessee shall promptly, at its
own cost and expense return the Equipment to a location within the continental
United States as Lessor shall direct. (b) Until Lessee has fully complied with
the requirements of Section X(a) above, Lessee's rent payment obligation and all
other obligations under this Agreement shall continue from month to month
notwithstanding any expiration or termination of the lease term. Lessor may
terminate such continued leasehold interest upon ten (10) days notice to Lessee.


(a) Lessor may in writing declare this Agreement in default if: Lessee breaches
its obligation to pay rent or any other sum when due and fails to cure the
breach within ten (10) days after Lessor has sent to Lessee written notice of
said default; Lessee fails to comply with its notification obligations under
Section VII hereof; Lessee breaches any of its insurance obligations under
Section IX; Lessee breaches any of its other obligations to Lessor hereunder or
under any instrument, document or agreement between Lessor and Lessee and fails
to cure that breach within thirty (30) days after written notice thereof; any
representation or warranty made by Lessee in connection with this Agreement
shall be false or misleading in any material respect; Lessee becomes insolvent
or ceases to do business as a going concern; Lessee is not owned and/or
controlled by Arkansas Best Corporation or one of its wholly-owned subsidiaries
and Lessee's Tangible Net Worth, as defined in accordance with GAAP, is equal to
or less than $120 million and the Total Liabilities divided by Total Net Worth,
both terms as defined in accordance with GAAP, is greater than 3:1 immediately
following the change of ownership or control: If Lessee

<PAGE>   5

is not owned and/or controlled by Arkansas Best Corporation, Lessee will
maintain a Total Liabilities divided by Total Net Worth less than or equal to
3:1 and a Tangible Net Worth greater than $120 million on a continuing basis
measured quarterly; any Equipment is illegally used; or a petition is filed by
or against Lessee under any bankruptcy or insolvency laws. Such declaration
shall apply to all Schedules except as specifically excepted by Lessor. (b)
After default, at the request of Lessor, Lessee shall comply with the provisions
of Section X(a) above. Lessee hereby authorizes Lessor upon the default of
Lessee (and failure to cure within any applicable cure period) to enter, with or
without legal process, any premises where any Equipment is believed to be and
take possession thereof. Lessee shall, without further demand, forthwith pay to
Lessor (i) as liquidated damages for loss of a bargain and not as a penalty, the
Stipulated Loss Value of the Equipment (calculated as of the rental next
preceding the declaration of default), and (ii) all rentals and other sums then
due hereunder. Lessor may, but shall not be required to, sell Equipment at
private or public sale, in bulk or in parcels, with or without notice, and
without having the Equipment present at the place of sale; or Lessor may, but
shall not be required to, lease, otherwise dispose of or keep idle all or part
of the Equipment; and Lessor may use Lessee's premises for any or all of the
foregoing without liability for rent, costs, damages or otherwise, except to the
extent of damages directly caused by the negligence or misconduct of Lessor. The
proceeds of sale, lease or other disposition, if any, shall be applied in the
following order of priorities: (1) to pay all of the Lessor's costs, charges and
expenses incurred in taking, removing, holding, repairing and selling, leasing
or otherwise disposing of Equipment; then, (2) to the extent not previously paid
by Lessee to pay Lessor all sums due from Lessee, hereunder; then (3) to
reimburse to Lessee any sums previously paid by Lessee as liquidated damages;
and (4) any surplus shall be retained by Lessee. Lessee shall pay any deficiency
in (1) and (2) forthwith. (c) The foregoing remedies are cumulative, and any or
all thereof may be exercised in lieu of or in addition to each other or any
remedies at law, in equity, or under statute. Lessee waives notice of sale or
other disposition (and the time and place thereof), and the manner and place of
any advertising. Lessee shall pay Lessor's actual attorney's fees incurred in
connection with the enforcement, assertion, defense or preservation of Lessor's
rights and remedies hereunder, or if prohibited by law, such lesser sum as may
be permitted. Waiver of any default shall not be a waiver of any other or
subsequent default. (d) Any default under the terms of this or any other
agreement between Lessor and Lessee may be declared by Lessor a default under
this and any other such agreement.


(a) Lessor may not assign its rights hereunder without Lessee's prior written
consent, which consent shall not be unreasonably withheld. Notwithstanding the
foregoing, in the event Lessor does assign all or any part of its rights
hereunder in violation of this section and Lessee objects to such assignment,
Lessor shall have thirty (30) days from its receipt of written notice thereof
from Lessee to remedy such assignment by repurchasing the Lease from the
assignee, by commencing a new Lease with the Lessee on the same terms as
previously applicable, covering the affected Equipment, or affecting such other
remedy as may be reasonably acceptable to Lessee in its discretion. (b) Subject
to the provisions of subsection (a) above, if Lessee receives written notice of
an assignment from Lessor, Lessee will pay all rent and other amounts payable
under any assigned

<PAGE>   6

Equipment Schedule to such assignee as instructed by Lessor. Lessee further
agrees to confirm in writing receipt of a notice of assignment as may be
reasonably requested by assignee. Lessee hereby agrees not to assert against any
such assignee, or assignee's assigns, any defense, set-off, recoupment claim or
counterclaim ("Claims") which Lessee has or may at any time have against Lessor
for any reason whatsoever. However, nothing contained in the foregoing sentence
shall limit whatever rights Lessee would otherwise have (i) to assert directly
against such assignee those Claims which arise out of the acts or omissions of
such assignee, or (ii) to assert directly against Lessor those Claims which
arise out of the acts or omissions of Lessor. (c) Lessee may not assign its
rights hereunder without Lessor's prior written consent, which consent shall not
be unreasonably withheld.


This Agreement is a net lease. Lessee's obligation to pay rent and other amounts
due hereunder, shall be absolute and unconditional. Lessee shall not be entitled
to any abatement or reductions of, or set-offs against, said rent or other
amounts, including, without limitation, those arising or allegedly arising out
of claims (present or future, alleged or actual, and including claims arising
out of strict tort of negligence of Lessor) of Lessee against Lessor under this
Agreement of otherwise. Nor shall this Agreement terminate or the obligations of
Lessee be affected by reason of any defect in or damage to, or loss of
possession, use or destruction of, any Equipment from whatsoever cause. It is in
the intention of the parties that rents and other amounts due hereunder shall
continue to be payable in all events in the manner and at the times set forth
herein unless the obligation to do so shall have been terminated pursuant to the
express terms hereof.


(a) Lessee hereby agrees to indemnify, save and keep harmless Lessor, its
agents, employees, successors and assigns from and against any and all losses,
damages, penalties, injuries, claims, actions and suits, including legal
expenses, of whatsoever kind and nature, in contract or tort, except to the
extent directly caused by the negligence or misconduct of Lessor, and including,
but not limited to, Lessor's strict liability in tort, arising out of (i) the
selection, manufacture, purchase, acceptance or rejection of Equipment, the
ownership of Equipment during the term of this Agreement, and the delivery,
lease, possession, maintenance, uses, condition, return or operation of
Equipment (including, without limitation, latent and other defects, whether or
not discoverable by Lessor or Lessee and any claim for patent, trademark or
copyright infringement or environmental damage) or (ii) the condition of
Equipment sold or disposed of after use by Lessee, any sublessee or employees of
Lessee. Lessee shall, upon request, defend any actions based on, or arising out
of, any of the foregoing. (b) All of Lessor's rights, privileges and indemnities
contained in this Section XIV shall survive the expiration or other termination
of this Agreement and the rights, privileges and indemnities contained herein
are expressly made for the benefit of, and shall be enforceable by Lessor, its
successors and assigns.

<PAGE>   7


between Lessor and Lessee, are to be borne by Lessee. Without limiting the
foregoing, Lessor shall have no responsibility or liability to Lessee or any
other person with respect to any of the following, except to the extent directly
resulting from the negligence or misconduct of Lessor: (i) any liability, loss
or damage caused or alleged to be caused directly or indirectly by any
Equipment, any inadequacy thereof, any deficiency or defect (latent or
otherwise) therein, or any other circumstance in connection therewith; (ii) the
use, operation or performance of any Equipment or any risks relating thereto;
(iii) any interruption of service, loss of business or anticipated profits or
consequential damages; or (iv) the delivery, operation, servicing, maintenance,
repair, improvement or replacement of any Equipment. If, and so long as, no
default exists under this Lease, Lessee shall be, and hereby is, authorized
during the term of this Lease to assert and enforce, at Lessee's sole cost and
expense, from time to time, in the name of and for the account of Lessor and/or
Lessee, as their interests may appear, whatever claims and rights Lessor may
have against any Supplier of the Equipment.


Lessee hereby represents and warrants to Lessor that on the date hereof and on
the date of execution of each Schedule; (a) Lessee has adequate power and
capacity to enter into, and perform under, this Agreement and all related
documents (together, the "Documents") and is duly qualified to do business
wherever necessary to carry on its present business and operations, including
the jurisdiction(s) where the Equipment is or is to be located. (b) The
Documents have been duly authorized, executed and delivered by Lessee and
constitute valid, legal and binding agreements, enforceable in accordance with
their terms, except to the extent that the enforcement of remedies therein
provided may be limited under applicable bankruptcy and insolvency laws. (c) No
approval, consent or withholding of objections is required from any governmental
authority or instrumentality with respect to the entry into or performance by
Lessee of the Documents except such as have already been obtained. (d) The entry
into and performance by Lessee of the Documents will not: (i) violate any
judgement, order, law or regulation applicable to Lessee or any provision of
Lessee's Certificate of Incorporation or By-Laws; or (ii) result in any breach
of, constitute a default under or result in the creation of any lien, charge,
security interest or other encumbrance upon any Equipment pursuant to any
indenture, mortgage, deed of trust, bank loan or credit agreement or other
instrument (other than this Agreement) to which Lessee is a party. (e) There are
no suits or proceedings pending or threatened in court or before any commission,
board or other

<PAGE>   8

administrative agency against or affecting Lessee, which will have a material
adverse effect on the ability of Lessee to fulfill its obligations under this
Agreement. (f) The Equipment accepted under any Certificate of Acceptance is and
will remain tangible personal property. (g) Each Balance Sheet and Statement of
Income delivered to Lessor has been prepared in accordance with generally
accepted accounting principles, and since the date of most recent such Balance
Sheet and Statement of Income, there has been no material adverse changes. (h)
Lessee is and will be at all times validly existing and in good standing under
the laws of the State of its incorporation (specified in the first sentence of
this Agreement). (i) The Equipment will at all times be used for commercial or
business purposes.


(a) For income tax purposes, the parties hereto agree that it is their mutual
intention that Lessee shall be considered the owner of the Equipment.
Accordingly, Lessor agrees (i) to treat Lessee as the owner of the equipment on
its federal income tax return, (ii) not to take actions or positions
inconsistent with such treatment on or with respect to its federal income tax
return, and (iii) not to claim any tax benefits available to an owner of the
Equipment on or with respects to its federal income tax return. The foregoing
undertakings by Lessor shall not be violated by Lessor's taking a tax position
inconsistent with the foregoing sentence to the extent such a position is
required by law or is taken through inadvertence so long as such inadvertent tax
position is reversed by Lessor promptly upon its discovery. Lessor shall in no
event be liable to Lessee if Lessee fails to secure any of the tax benefits
available to the owner of the Equipment. (b) Lessee hereby grants to Lessor a
first security interest in the Equipment, together with all additions,
attachments, accessions, accessories and accessions thereto whether or not
furnished by the Supplier of the Equipment and any and all substitutions,
replacements or exchanges therefor, and any and all insurance and/or other
proceeds of the property in and against which a security interest is granted
hereunder. Notwithstanding anything to the contrary contained elsewhere in this
Agreement, to the extent that Lessor asserts a purchase money security interest
in any items of Equipment ("PMSI Equipment"): (i) the PMSI Equipment shall
secure only those sums which have been advanced by Lessor for the purchase of
the PMSI Equipment, or the acquisition of rights therein, or the use thereof
(the "PMSI Indebtedness"), and (ii) no other Equipment shall secure the PMSI
Indebtedness. (c) It is the intention of the parties hereto to comply with any
applicable usury laws to the extent that any Schedule is determined to be
subject to such laws; accordingly, it is agreed that, notwithstanding any
provision to the contrary in any Schedule or the Lease, in no event shall any
Schedule require the payment or permit the collection of interest in excess of
the maximum amount permitted by applicable law. If any such excess interest is
contracted for, charged or received under any Schedule or the Lease, or in the
event that all of the principal balance shall be prepaid, so that under any of
such circumstances the amount of interest contracted for, charged or received
under any Schedule or the Lease shall exceed the maximum amount of interest
permitted by applicable law, then in such event (a) the provisions of this
paragraph shall govern and control, (b) neither Lessee nor any other person or
entity now or hereafter liable for the payment hereof shall be obligated to pay
the amount of such interest to the extent that it

<PAGE>   9

is in excess of the maximum amount of interest permitted by applicable law, (c)
any such excess which may have been collected shall be either applied as a
credit against the then unpaid principal balance or refunded to Lessee, at the
option of the Lessor, and (d) the effective rate of interest shall be
automatically reduced to the maximum lawful contract rate allowed under
applicable law as now or hereafter construed by the courts having jurisdiction
thereof. It is further agreed that without limitation of the foregoing, all
calculations of the rate of interest contracted for, charged or received under
any Schedule or the Lease which are made for the purpose of determining whether
such rate exceeds the maximum lawful contract rate, shall be made, to the extent
permitted by applicable law, by amortizing, prorating, allocating and spreading
in equal parts during the period of the full stated term of the indebtedness
evidenced hereby, all interest at any time contracted for, charged or received
from the Lessee or otherwise by Lessor in connection with such indebtedness;
provided, however, that if any applicable state law is amended or the law of the
United States of America preempts any applicable state law, so that it becomes
lawful for Lessor to receive a greater interest per annum rate than is presently
allowed, the Lessee agrees that, on the effective date of such amendment or
preemption, as the case may be, the lawful maximum hereunder shall be increased
to the maximum interest per annum rate allowed by the amended state law or the
law of the United States of America.


(a) On or after the First Termination Date (specified in the applicable
Schedule), Lessee may, so long as no default exists hereunder, terminate this
Agreement as to all (but not less than all) of the Equipment on such Schedule as
of a Rent Payment Date ("Termination Date") upon at least 90 days prior written
notice to Lessor. (b) Lessee shall, and Lessor may, solicit cash bids for the
Equipment on an AS IS, WHERE IS BASIS without recourse to or warranty from
Lessor, express or implied ("AS IS BASIS"). Prior to the Termination Date,
Lessee shall (i) certify to Lessor any bids received by Lessee and (ii) pay to
Lessor (A) the Termination Value (calculated as of the rental due on the
Termination Date) for the Equipment, and (B) all rent and other sums due and
unpaid as of the Termination Date. (c) Provided that all amounts due hereunder
have been paid on the Termination Date, Lessor shall (i) sell the Equipment on
an AS IS BASIS for cash to the highest bidder and (ii) refund the proceeds of
such sale (net of any related expenses) to Lessee up to the amount of the
Termination Value. If such sale is not consummated, no termination shall occur
and Lessor shall refund the Termination Value (less any expenses incurred by
Lessor) to Lessee. (d) Notwithstanding the foregoing, Lessor may elect by
written notice, at any time prior to the Termination Date, not to sell the
Equipment. In that event, on the Termination Date Lessee shall (i) return the
Equipment (in accordance with Section X) and (ii) pay to Lessor all amounts
required under Section XVIII(b) less the amount of the highest bid certified by
Lessee to Lessor.


(a) Provided that the Lease has not been earlier terminated and provided further
that Lessee is not in default under the Lease or any other agreement between
Lessor and Lessee, Lessee may, UPON AT LEAST 30 DAYS BUT NO MORE THAN 270 DAYS

<PAGE>   10

TO EXERCISE SUCH OPTION, purchase all (but not less than all) of the Equipment
listed and described in this schedule on any Rent Payment Date following the
First Termination Date as set forth in this Schedule, and prior to the date
which is the scheduled expiration of this Lease (the "Early Purchase Date"), for
a price equal to (i) the Termination Value (calculated as of the Early Purchase
Date) for the Equipment, and (ii) all rent and other sums due and unpaid as of
the Purchase Date (the "Early Option Price"), plus all applicable sales taxes on
an AS IS BASIS, (The purchase option granted by this subsection shall be
referred to herein as the "Early Purchase Option"). (b) If Lessee exercises its
Early Purchase Option with respect to the Equipment leased hereunder, then on
the Early Purchase Date, Lessee shall pay to Lessor any rent and other sums due
and unpaid on the Early Purchase Date and Lessee shall pay the Early Option
Price, plus all applicable sales taxes, to Lessor in cash.


(a) So long as no default exists hereunder and the lease has not been earlier
terminated, Lessee may at lease expiration purchase all (but not less than all)
of the Equipment in any Schedule on an AS IS, WHERE IS BASIS for cash equal to
the amount indicated in such Schedule (the "Option Payment"). The Option Payment
shall be due and payable in immediately available funds on the Expiration Date.
(b) Lessee shall be deemed to have waived this option unless it provides Lessor
with written notice of its irrevocable election to exercise the same not less
than 90 days prior to the Expiration Date.


Any controversy or claim arising out of or relating to this Lease shall be
governed by the substantive laws of the State of Illinois, and shall be heard by
a Federal Court located in the State of Illinois; provided, however, that Lessor
may also institute suit in any jurisdiction where any of the Equipment, or any
guarantor or their assets may be located. (b) Unless and until Lessee exercises
its rights under Section XIX above, nothing herein contained shall give or
convey to Lessee any right, title or interest in and to any Equipment except as
a lessee. Any cancellation or termination by Lessor, pursuant to the provision
of this Agreement, any Schedule, supplement or amendment hereto, or the lease of
any Equipment hereunder, shall not release Lessee from any then outstanding
obligations to Lessor hereunder. All Equipment shall at all times remain
personal property of Lessor regardless of the degree of its annexation to any
real property and shall not by reason of any installation in, or affixation to,
real or personal property become a part thereof. (c) Time is of the essence of
this Agreement. Lessor's failure at any time to require strict performance by
Lessee of any of the provisions hereof shall not waive or diminish Lessor's
right thereafter to demand strict compliance therewith. Lessee agrees, upon
Lessor's request, to execute any instrument necessary or expedient for filing,
recording or perfecting the interest of Lessor. All notices required to be given
hereunder shall be deemed adequately given if sent by registered or certified
mail to the addressee at its address stated herein, or at such other place as
such addressee may have designated in writing. This Agreement and any Schedule
and Annexes thereto constitute the entire agreement of the parties with respect

<PAGE>   11


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(d) In case of a failure of Lessee to comply with any provision of this
Agreement, Lessor shall have the right, ten (10) days after sending written
notice thereof to Lessee, but shall not be obligated to, effect such compliance,
in whole or in part; and all moneys spent and expenses and obligations incurred
or assumed by Lessor in effecting such compliance shall constitute additional
rent due to Lessor within five days after the date Lessor sends notice to Lessee
requesting payment. Lessor's effecting such compliance shall not be a waiver of
Lessee's default. (e) Any rent or other amount not paid to Lessor when due
hereunder shall bear interest, both before and after any judgment or termination
hereof, at the lesser of eighteen percent per annum or the maximum rate allowed
by law. Any provisions in this Agreement and any Schedule which are in conflict
with any statute, law or applicable rule shall be deemed omitted, modified or
altered to conform thereto.

IN WITNESS WHEREOF, Lessee and Lessor have caused this Agreement to be executed
by their duly authorized representatives as of the date first above written.

LESSOR:                               LESSEE:

Mercedes-Benz Credit Corporation      ABF Freight System, Inc.

By:                                   By:
    -----------------------------        -----------------------------
Name:                                 Name:
     ----------------------------          ---------------------------
Title:                                Title:
       --------------------------           --------------------------