Sample Business Contracts

Equipment Lease - Carlton Financial Corp. and BW-3 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.

Sponsored Links


MARCH 11, 1998

Ms. Mary Twinem, CFO
Buffalo Wild Wings Grill & Bar
1919 Interchange Tower
600 S. Highway 169
Minneapolis, MN 55426

Dear Ms. Twinem:

Pursuant to your request for a lease proposal, we are pleased to submit the

The following terms and conditions generally outline the proposed transaction
and are based upon information furnished to us by you.

LESSEE:                       bw-3, Inc.

LESSOR:                       Carlton Financial Corporation and/or its nominees
                              and participants

EQUIPMENT:                    FF&E for up to 11 locations through 6/30/99

EQUIPMENT COST:               Approximately $2,500,000 or $225,000 per location

ACCEPTANCE DATE:              To be determined

COMMENCEMENT DATE:            To be determined.

INITIAL LEASE TERM:           60 Months

INTERIM LEASE TERM:           An interim lease term will commence from the
                              Delivery/Acceptance Date and terminate on the
                              Lease Commencement Date


INTERIM RENT:                 Interim Rent will be calculated based on the daily
                              equivalent of the lease factor rate multiplied by
                              the Equipment Cost and will be payable on the
                              Lease Commencement Date

RENTAL PAYMENTS:              Base Rents are to be monthly in advance, with
                              first payment in advance.

                                                        PURCHASE OPTION
                                                          A         B
                                                         --        --
                              Lease Rate Factor: =     .02200    .02069

LEASE ADJUSTMENTS:            The effective lease rate contained within this
                              proposal is tied to the five year treasury index.
                              If there is a change in the treasury index at the
                              time of lease commencement, the effective rate
                              within the lease will be adjusted basis point for
                              basis point for such change.

INVOICING:                    A single invoice will be furnished on a monthly

TAXES:                        Lessee will pay all fees, assessments, sales, use,
                              property and other taxes imposed upon Lessor.

INSURANCE:                    Lessee will be required to maintain physical
                              damage and liability insurance in accordance with
                              industry standards and acceptable to Lessor naming
                              Lessor as additional insured.

MAINTENANCE:                  Lessee shall maintain (or cause to be maintained)
                              the Equipment in the same condition as when
                              originally delivered, normal wear and tear
                              expected.  The Equipment must be capable of
                              performing the task for which it was originally
                              intended and conform to all regulatory
                              requirements imposed by any governmental body
                              during the Lease Term.

TRANSACTION EXPENSES:         Lessee shall each pay any and all transaction
                              expenses incurred.  These expenses could include
                              but are not limited to, UCC Financing
                              Statement(s), recording, appraisal, registration
                              and perfection of title for the account of Lessee.

PURCHASE OPTION A:            At the end of the base lease term the Lessee shall
                              purchase the equipment for $1.00.

PURCHASE OPTION B:            Lessee, at it's 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 for a purchase
                              price equal to the greater of the (a) fair market
                              value of the equipment, or (b) 11% of the original
                              cost of the equipment or (c) renew for twelve
                              months at .01008 of the original equipment cost.

UPGRADE OPTION:               Beginning after the Commencement Date of the
                              Lease, Lessee shall have the option to upgrade the
                              Equipment defined in the


                              Lease subject to the following additional
                              conditions:  (1) Lessee is in compliance with all
                              the terms and conditions of the Lease Agreement;
                              (2) The new equipment to be leased from Lessor
                              under a new Lease or additional Schedule is
                              subject to Lessor's then current lease charges and
                              documentation which shall be mutually satisfactory
                              to Lessee and Lessor:  (3) Lessee's then current
                              financial condition must be approved by Lessor for
                              purposes of the new lease or additional schedule,
                              such determination to be at Lessor's sole
                              discretion; (4) The upgrade of new equipment
                              covered by the Lease, the equipment remaining and
                              new equipment must meet Lessor's approval.

EARLY BUYOUT OPTIONS:         The Lessee will have the opportunity to buyout the
                              Lease based on the following schedule:

                                         PAYMENT PERIOD     PREPAYMENT
                                         --------------      PENALTY
                                              1-24              2%
                                             25-48              1%
                                             49-60              0%

Prepayment penalty based on schedule of payments attached.

CREDIT INFORMATION:           For our credit committee, we will need complete
                              financial statements for the last three years,
                              three trade references with their names and
                              telephone numbers, bank references with the names
                              and telephone numbers of the officers to contact,
                              and a complete equipment list indicating equipment
                              descriptions, prices and vendors.  We may request
                              additional information as necessary.

CONDITIONS PRECEDENT:         The Lessor shall, at it's option, may terminate
                              the funding commitment in the event of any one of
                              the following:

                              1.   Any material adverse changes in the financial
                                   condition of the Lessee up to the funding
                                   date of the Master Lease or any subsequent
                                   schedule thereto.
                              2.   Any significant change in the equipment
                              3.   Any change in the location of the specified

 Upon acceptance of this proposal, and prior to submission of this transaction
to the lessor's credit committee, proposal fee in the $25,000 will be due and

 If the transaction is approved, this fee will be applied, pro rata to the first
monthly rental due under the lease, less a documentation fee and any transaction
expenses.  If the transaction is  not approved, the fee will be returned.  If
the transaction is approved but takedown does not occur through no fault of
Carlton Financial Corporation, this fee will be considered earned by Carlton
Financial Corporation.

 This Proposal is subject to Lessor's Senior Finance Committee's approval and
documentation must be satisfactory to Lessor.


 I appreciate the opportunity to present to you the preceding proposal as a
service of Carlton Financial Corporation.  Should you have questions, please
contact me at (612) 896-0314.



/s/  James D. Wanningman

James D. Wanningman
Senior Vice President

     This proposal must be accepted by March 25, 1998 or it will expire


                                   By:  /s/  Mary Twinem

                                   Its:  Treasurer

                                   Date:  3/17/98