Master Equipment Lease - Phoenix Leasing Inc. and Intellipost Corp.
MASTER EQUIPMENT LEASE AGREEMENT NO. 0148
THIS MASTER EQUIPMENT LEASE AGREEMENT NO. 0148 (the "Lease") is dated as of May
1, 1998 between PHOENIX LEASING INCORPORATED, a California corporation
("Lessor") and INTELLIPOST CORPORATION, a California corporation and INTELLIPOST
CORPORATION, a Delaware corporation (jointly and severally, "Lessee" and
separately, each a "Co-Lessee").
RECITALS
Lessor desires to lease to Lessee, and Lessee desires to lease from Lessor, the
equipment, machinery, fixture, other items and intangibles including, but not
limited to high end computers, peripherals, workstations, servers, routers,
hubs, RAID, office equipment and furniture, and certain custom use equipment,
installation and delivery costs, purchase tax, toolings, sore and items
generally considered fungible or expendable ("Soft Costs") and all substitutions
and replacements of and additions, improve, accessions and accumulations
thereto, together with all rents, issues, income, profits and proceeds therefrom
which is described on the schedule attached hereto or any subsequently-executed
schedule entered into by Lessor and Lessee and which incorporates this Lease by
reference (herein called "Equipment"). Any such schedules shall hereinafter
individually be referred to as a "Schedule" and collectively be referred to as
the "Schedules."
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
Lessor hereby leases the Equipment to Lessee upon the following terms and
conditions:
SECTION 1. TERM OF AGREEMENT. The term of this Lease begins on the date set
forth above and shall continue thereafter and be in effect so long as and at any
time any Schedule entered into pursuant to this Lease is in effect. The Base
Term and rent payable with respect to each leased item of Equipment shall be as
set forth in and as stated in the respective Schedule(s). The terms of each
Schedule hereto are subject to all conditions and provisions of this Lease as it
may at any time be amended. Each Schedule shall constitute a separate and
independent lease and contractual obligation of Lessee and shall incorporate the
terms and conditions of this Lease and any additional provisions contained in
such Schedule. In the event of a conflict between the terms and conditions of
this Lease and any additional provisions of such Schedule, the additional
provisions of such Schedule shall prevail with respect to such Schedule only.
SECTION 2. NON-CANCELLABLE LEASE. This Lease and any Schedule cannot be
cancelled or terminated except as expressly provided herein. This Lease (which
includes any Schedule which incorporates the terms and conditions of this Lease)
constitutes a net lease and Lessee agrees that its obligations to pay all rent
and other sums payable hereunder (and under any Schedule) and the rights of
Lessor and assignee in and to such rent and other sums, are absolute and
unconditional and are not subject to any abatement, reduction, setoff defense,
counterclaim or recoupment due or alleged to be due to, or by reason of, any
past, present or future claims which Lessee may have against Lessor, any
assignee, the manufacturer or seller of the Equipment, or against any person for
any reason whatsoever.
SECTION 3. LESSOR COMMITMENT. Subject to the terms and conditions of this Lease
and so long as no Event of Default or event which with the giving of notice or
passage of time, or both, could become an Event of Default has occurred and is
continuing, Lessor agrees to lease to Lessee the groups of Equipment described
on each Schedule, subject to the following conditions: (a) that in no event
shall Lessor be obligated to lease Equipment to Lessee hereunder where the
aggregate purchase price of all Equipment leased to Lessee hereunder would
exceed $250,000 ("Commitment") of which amount Lessor may purchase Soft Costs
for lease to Lessee
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MASTER EQUIPMENT LEASE AGREEMENT
having an aggregate purchase price not exceeding an amount equal to 20% of the
utilized Commitment; (b) the amount of Equipment purchased by Lessor at any one
time shall be at least equal to $25,000 except for a final advance which may be
less than $25,000; (c) Lessor shall not be obligated to purchase Equipment
hereunder after January 31, 1999; (d) all Lease documentation required by Lessor
has been executed by Lessee or provided by Lessee no later than April 20, 1998;
(e) the equipment described on the Schedule is acceptable to Lessor; (f) with
respect to each funding, Lessee has provided to Lessor each of the closing
documents and other items described in Exhibit A hereto (which documents shall
be in form and substance acceptable to Lessor) and which list may be modified
for each subsequent funding; (g) there is no material adverse change in Lessee's
condition, financial or otherwise, that would materially impair the ability of
Lessee to meet its payment and other obligations under this Lease, a ("Material
Adverse Effect"), as reasonably determined by Lessor, and Lessee so certifies,
from (yy) the date of the most recent financial statements delivered by Lessee
to Lessor prior to execution of this Lease, to (zz) the date of the proposed
lease of the Equipment; (h) Lessee is performing substantially in accordance
with its business plan referred to as "Plan 1998/1999" fax dated 1/26/98, viable
through 12/31/99, as may be amended from time to time in form and substance
acceptable to Lessor ("Business Plan"); (i) Lessor or its agent has inspected
and placed identification labels on the Equipment; (j) Lessee shall offer to
Lessor, on an exclusive basis, all lease transactions for equipment contemplated
by Lessee until expiration of all Schedules; however if Lessor declines to
finance any such transaction or Lessee and Lessor cannot agree upon terms, then
Lessee shall be free to seek such financing from any other third party; (k)
Lessor has received in form and substance acceptable to Lessor Lessee's interim
financial statements signed by a financial officer of Lessee; and (1) prior to
the first funding hereunder, Lessor has received evidence satisfactory to Lessor
of Lessee's $3,046,087 cash position as of 11/30/97.
SECTION 4. NO WARRANTIES BY LESSOR. (a) Lessee has selected both (i) the
Equipment and (ii) the suppliers (herein called "Vendor") from whom Lessor is to
purchase the Equipment. LESSOR MAKES NO WARRANTY EXPRESS OR IMPLIED AS TO ANY
MATTER WHATSOEVER, INCLUDING THE CON- DITION OF THE EQUIPMENT, ITS
MERCHANTABILITY OR ITS FITNESS FOR ANY PARTICULAR PURPOSE, ITS COMPLIANCE WITH
ANY APPLICABLE GOVERNMENTAL REQUIREMENTS AND ITS NON-INFRINGEMENT OF ANY PATENTS
OR OTHER RIGHTS, AND AS TO LESSOR, LESSEE LEASES THE EQUIPMENT "AS IS" AND WITH
ALL FAULTS. (b) If the Equipment is not properly installed, does not operate as
represented or warranted by Vendor or is unsatisfactory for any reason, Lessee
shall make any claim on account thereof solely against Vendor and shall,
nevertheless, pay Lessor all rent payable under this Lease, Lessee hereby
waiving any such claims as against Lessor. Lessor hereby agrees to assign to
Lessee solely for the purpose of making .and prosecuting any said claim, to the
extent assignable, all of the rights which Lessor has against Vendor for breach
of warranty or other representation respecting the Equipment. Lessor shall have
no responsibility for delay or failure to fill the order. (c) Lessee understands
and agrees that neither the Vendor nor any salesman or other agent of the Vendor
is an agent of Lessor. No salesman or agent of Vendor is authorized to waive or
alter any term or condition of this Lease, and no representations as to the
Equipment or any other matter by the Vendor shall in any way affect Lessee's
duty to pay the rent and perform its other obligations as set forth in this
Lease. (d) Lessee hereby requests Lessor to purchase Equipment from Vendor and
to lease Equipment to Lessee on the terms and conditions of the Lease set forth
herein. (e) Lessee hereby authorizes Lessor to insert in this Lease and each
Schedule hereto the serial numbers and other identification data of the
Equipment when determined by Lessor.
SECTION 5. LESSEE'S REPRESENTATIONS AND WARRANTIES. Each Co-Lessee represents
and warrants that (a) it is in good standing under the laws of the state of its
formation, and duly qualified to do business, and will remain duly qualified
during the term of this Lease, in each state where necessary to carry on its
present business and operations including the jurisdictions where the Equipment
will be located, as specified on each Schedule hereto except where failure to be
so qualified would not have a Material Adverse Effect; (b)
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it has full authority to execute and deliver this Lease and perform the terms
hereof, and this Lease has been duly authorized and constitutes valid and
binding obligations of Co-Lessee enforceable in accordance with its terms; (c)
this Lease will not contravene any law, regulation or judgment affecting
Co-Lessee or result in any breach of any agreement or other instrument binding
on Co-Lessee; (d) no consent of Co-Lessee's shareholders, members or managers or
partners, as applicable, or holder of any indebtedness, or filing with, or
approval of, any governmental agency or commission, is a condition to the
performance of the terms hereof; (e) there is no action or proceeding pending or
threatened against Co-Lessee before any court or administrative agency which
might result in a Material Adverse Effect on the business, financial condition
or operations of Co-Lessee; (f) no deed of trust, mortgage or third party
interest arising through Co-Lessee will attach to the Equipment or the Lease;
(g) the Equipment will remain at all times under applicable law, removable
personal property, free and clear of any lien or encumbrance in favor of
Co-Lessee or any other person, notwithstanding the manner in which the Equipment
may be attached to any real property; (h) all credit, financial and any other
information submitted to Lessor herewith or any other time is true and correct
in all material respects; and (i) Co-Lessee has provided, or will provide if
requested, Lessee's tax identification number.
SECTION 6. EQUIPMENT ORDERING. Lessee shall be responsible for all packing,
rigging, transportation and installation charges for the Equipment and Lessor
may separately invoice Lessee for such charges. Lessee has selected the
Equipment itself and shall arrange for delivery of Equipment so that it can be
accepted in accordance with Section 7 hereof. Lessee hereby agrees to indemnify
and hold Lessor harmless from any claims, liabilities, costs and expenses,
including reasonable attorneys' fees, incurred by Lessor arising out of any
purchase orders or assignments executed by Lessor with respect to any Equipment
or services relating thereto.
SECTION 7. LESSEE ACCEPTANCE. Lessee shall return to Lessor the signed and dated
Acceptance Notice attached to each Schedule hereto (a) acknowledging the
Equipment has been received, installed and is ready for use and (b) accepting it
as satisfactory in all respects for the purposes of this Lease. Lessor is
authorized to fill in the Rent Start Date on each Schedule in accordance with
the foregoing.
SECTION 8. LOCATION; INSPECTION; LABELS. The Equipment shall be delivered to and
shall not be removed from the Equipment "Location" shown on each Schedule
without Lessor's prior written consent (such consent not to be unreasonably
withheld), which Location shall in all events be within the United States.
Lessor shall have the fight to inspect the Equipment including records relating
thereto, and Lessee's books and records at any time (upon reasonable
notification) during regular business hours, such books and records to be
maintained in accordance with generally accepted accounting principles. Lessee
shall be responsible for all labor, material and freight charges incurred in
connection with any removal or relocation of such Equipment which is requested
by the Lessee and consented to by Lessor, as well as for any charges due to the
installation or moving of the Equipment. The rental payments shall continue
during any period in which the Equipment is in transit during a relocation.
Lessor or its agent shall mark and label the Equipment, which labels (to be
provided by Lessor) shall state the Equipment is owned by Lessor, and Lessee
shall keep such labels on the Equipment as labeled by Lessor or its agent.
SECTION 9. EQUIPMENT MAINTENANCE. (a) General. Lessee will locate or base each
item of Equipment where designated in the Acceptance Notice and will reasonably
permit Lessor to inspect such item of Equipment and its maintenance records.
Lessee will at its sole expense comply with all applicable laws, rules,
regulations, requirements and orders with respect to the use, maintenance,
repair, condition, storage and operation of each item of Equipment. Except as
required herein (or other than in conformity with the manufacturer's warranty
and/or functional improvements), Lessee will not make any addition or
improvement to any item of Equipment that is not readily removable without
causing material damage to any item or impairing its original
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value or utility. Any addition or improvement that is so required or cannot be
so removed will immediately become the property of Lessor. (b) Service and
Repair. With respect to computer equipment, other than personal computers,
Lessee has entered into, and will maintain in effect, vendor's standard
maintenance contract or another contract satisfactory to Lessor for a period
equal to the term of each Schedule and extensions thereto which provides for the
maintenance of the Equipment in good condition and working order and repairs and
replacement of parts thereof, all in accordance with the terms of such
maintenance contract. Lessee shall have such computer equipment certified for
the vendor's standard maintenance agreement before Lessor acquires any interest
in the Equipment as provided in this Lease. With respect to any other Equipment,
Lessee will, at its sole expense, maintain and service, and repair any damage
to, each item of Equipment in a manner consistent with prudent industry practice
and Lessee's own practice so that such item of Equipment is at all times (I) in
the same condition as when delivered to Lessee, except for ordinary wear and
tear, (ii) in good operating order for the function intended by its
manufacturer's warranties and recommendations.
SECTION 10. LOSS OR DAMAGE. Lessee assumes the entire risk of loss to the
Equipment through use, operation or otherwise. Lessee hereby indemnifies and
holds harmless Lessor from and against all claims, loss of rental payments,
costs, damages, and expenses relating to or resulting from any loss, damage or
destruction of the Equipment, any such occurrence being hereinafter called a
"Casualty Occurrence." No Casualty Occurrence shall relieve Lessee from the
obligation to pay rent or from any other obligation under the Lease. Within
thirty (30) days after such Casualty Occurrence, Lessee shall either (a) repair
the Equipment, returning it to good operating condition; or Co) replace the
Equipment with identical equipment in good condition and repair, the title to
which shall vest in Lessor and which thereafter shall be subject to the terms of
this Lease; or (c) pay to Lessor (I) on the first rental payment date following
the Casualty Occurrence, or, if there is no such rental payment date, no later
than thirty (30) days after such Casualty Occurrence, any unpaid accrued amounts
relating to such Equipment due Lessor under this Lease up to the date of the
Casualty Occurrence, and (ii) upon the earlier of (A) the receipt of insurance
proceeds with respect to such Casualty Occurrence, or (B) within thirty (30)
days of such Casualty Occurrence, a sum equal to the Casualty Value as set forth
in the Casualty Value table attached to each Schedule hereto for such Equipment;
provided, however, nothing set forth in this sentence shall be deemed to relieve
Lessee of the obligation to continue to pay scheduled rental payments as they
relate to the Equipment that was the subject of the Casualty Occurrence as such
payments become due and payable prior to the date that the Casualty Value with
respect thereto is paid to Lessor in accordance with this section nor shall any
provision of this sentence be deemed to provide that Lessee's obligation to pay
the Casualty Value shall be limited to the amount of the insurance proceeds that
Lessee receives. Upon the making of such payment, the term of this Lease as to
each unit of Equipment with respect to which the Casualty Value was paid shall
terminate.
SECTION 11. GENERAL INDEMNITY. Lessee will protect, indemnify and save harmless
Lessor and any assignees on an after-tax basis from and against all liabilities,
obligations, claims, damages, penalties, causes of action, costs and expenses
(including reasonable attorneys' fees and expenses), imposed upon or incurred by
or asserted against Lessor or any assignee of Lessor by Lessee or any third
party by reason of the occurrence or existence (or alleged occurrence or
existence) of any act or event relating to or caused by the Equipment or its
purchase, acceptance, possession, use, maintenance or transportation, including
but not limited to, consequential or special damages of any kind, or any failure
on the part of Lessee to perform or comply with any of the terms of this Lease,
claims for latent or other defects, claims for patent, trademark or copyright
infringement and claims for personal injury, death or property damage, including
those based on Lessor's negligence or strict liability in tort and excluding
only that based on Lessor's gross negligence or willful misconduct. In the event
that any action, suit or proceeding is brought against Lessor by reason of any
such occurrence, Lessee, upon request of Lessor, will at Lessee's expense resist
and defend such action, suit or proceeding or cause the same to be resisted and
defended by counsel designated and approved by Lessor. Lessee's obligations
under this Section 11 shall survive the expiration of this Lease with respect to
acts or events occurring or alleged to have occurred prior to
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the return of the Equipment to Lessor at the end of the Lease term.
SECTION 12. INSURANCE. Lessee at its expense shall keep the Equipment insured
for the entire term and any extensions of this Lease against all risks of
physical loss for at least the replacement value of such Equipment and in no
event for less than the amount payable following a Casualty Occurrence (as
provided in Section 10) and shah provide for a loss payable endorsement to
Lessor and/or any assignee of Lessor. Lessee shall maintain commercial general
liability insurance, including products liability and completed operations
coverage, with respect to loss or damage for personal injury, death or property
damage in an amount not less than $2,000,000 in the aggregate, naming Lessor
and/or Lessor's assignee as additional insured. If such insurance is provided on
a claims made basis, such insurance shall include a five (5) year extended claim
reporting period. Such insurance shall contain insurer's agreement to give
thirty (30) days' advance written notice to Lessor before cancellation or
material change of any policy of insurance. Lessee will provide Lessor and any
assignee of Lessor with a certificate of insurance from the insurer evidencing
Lessor's or such assignee's interest in the policy of insurance. Such insurance
shall cover any Casualty Occurrence to any unit of Equipment. Notwithstanding
anything in Section 10 or this Section 12 to the contrary, this Lease and
Lessee's obligations hereunder and under each Schedule shall remain in full
force and effect with respect to any unit of Equipment which is not subject to a
Casualty Occurrence. If Lessee fails to provide or maintain insurance as
required herein, Lessor shall have the right, but shall not be obligated to
obtain such insurance. In that event, Lessee shall pay to Lessor the cost
thereof.
SECTION 13. TAXES. Lessee agrees to report the Equipment as equipment leased
from Lessor and not as equipment owned by Lessee on Lessee's personal property
tax return. Promptly upon receipt of an invoice from Lessor, Lessee agrees to
reimburse Lessor for (or pay directly if instructed by Lessor), and agrees to
indemnify and hold Lessor harmless from, all fees (including, but not limited
to, license, documentation, recording and registration fees), and all sales,
use, gross receipts, personal property, occupational, value added or other
taxes, levies, imposts, duties, assessments, charges, or withholdings of any
nature whatsoever, together with any penalties, fines, additions to tax, or
interest thereon (all of the foregoing being hereafter referred to as
"Impositions") except same as may be attributable to Lessor's income, arising at
any time prior to or during the term of this Lease, or upon termination or early
termination of this Lease and levied or imposed upon Lessor directly or
otherwise by any Federal, state or local government in the United States or by
any foreign country or foreign or international taxing authority upon or with
respect to (a) the Equipment, (b) the exportation, importation, registration,
purchase, ownership, delivery, leasing, possession, use, operation, storage,
maintenance, repair, return, sale, transfer of title, or other disposition
thereof, (c) the rentals, receipts, or earnings arising from the Equipment, or
any disposition of the rights to such rentals, receipts, or earnings, (d) any
payment pursuant to this Lease, and (e) this Lease or the transaction or any
part thereof. Lessee's obligations under this Section 13 shall survive the
expiration of this Lease with respect to acts or events occurring or alleged to
have occurred prior to the return of the Equipment to Lessor at the end of the
Lease term
SECTION 14. METHOD AND PLACE OF PAYMENT. Lessee shall pay to Lessor, at its
office at the address specified in the Schedules, or such other address as
Lessor specifies in writing, all amounts payable to it in respect of the
Schedules.
SECTION 15. SURRENDER OF EQUIPMENT. If required by the terms of this Lease or
any Schedule, Lessee will forthwith surrender the Equipment to Lessor delivered
in as good order and condition as originally delivered, reasonable wear and tear
exempted. Lessor may, at its sole option, arrange for removal and transportation
of the Equipment provided that Lessee's obligations under Sections 10, 11 and 12
shall not be released. Lessee shall bear all expenses of delivering (which
include, but are not limited to, the de-installation, insurance, packaging and
transportation of) the Equipment to Lessor's location or other location within
the United
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States as Lessor reasonably request. Notwithstanding Lessee's surrender and/or
delivery of the Equipment and/or Lessor's removal of the Equipment, all
obligations of Lessee under this Lease, including rental payments, shall remain
in full force and effect until Lessee delivers the Equipment to Lessor.
SECTION 16. MISCELLANEOUS AFFIRMATIVE COVENANTS. So long as any payment required
of Lessee hero is unpaid and as long as any obligations of Lessee under this
Lease remain outstanding, Lessee will: (a) duly pay all governmental taxes and
assessments at the time they become due and payable; Co) comply with all
applicable governmental laws, rules and regulations relating to the business and
the Equipment; (c) maintain Lessor's ownership interest in the Equipment; (d)
furnish Lessor with its annual audited financial statements within one hundred
twenty (120) days following the end of Lessee's fiscal year, unaudited quarterly
financial statements within forty-five (45) days after the end of each fiscal
quarter, and within thirty (30) days of the end of each month a financial
statement for that month prepared by Lessee, including all financial information
given to Lessee's Board of Directors, and including an income statement and
balance sheet, all of which shall be certified by an officer of Lessee as true
and correct and shall be prepared in accordance with generally accepted
accounting principles consistently applied, and such other information as Lessor
may reasonably request; (e) promptly (but in no event more than five (5) days
after the occurrence of such event) notify Lessor of any Material Adverse Effect
regarding Lessee's financial condition during the commitment period and of the
occurrence of any Event of Default; and (f) take all steps deemed by Lessor
reasonable or advisable to validate Lessor's ownership of the Equipment.
SECTION 17. ASSIGNMENT. WITHOUT LESSOR'S PRIOR WRITTEN CONSENT, WHICH CONSENT
WILL NOT BE UNREASONABLY WITHHELD, LESSEE SHALL NOT (a) ASSIGN, TRANSFER,
PLEDGE, HYPOTHECATE OR OTHERWISE DISPOSE OF THIS LEASE, ANY SCHEDULES, THE
EQUIPMENT, OR ANY INTEREST THEREIN, OR (b) SUBLET OR LEND EQUIPMENT OR PERMIT IT
TO BE USED BY ANYONE OTHER THAN LESSEE OR LESSEE'S EMPLOYEES, OR (c) MERGE INTO,
CONSOLIDATE WITH OR CONVEY OR TRANSFER ITS PROPERTIES SUBSTANTIALLY AS AN
ENTIRETY TO ANY OTHER PERSON OR ENTITY EXCEPT TO A SUCCESSOR IN INTEREST TO ALL
OR SUBSTANTIALLY ALL OF THE BUSINESS OF LESSEE; PROVIDED, HOWEVER, THAT, THE
FINANCIAL CONDITION OF SUCH SUCCESSOR IS GREATER THAN OR EQUAL TO THAT OF
LESSEE, AS DETERMINED IN GOOD FAITH BY LESSOR, AND THE SUCCESSOR'S BUSINESS AND
ITS MAJOR INVESTORS ARE REASONABLY ACCEPTABLE TO LESSOR. LESSOR MAY ASSIGN THIS
LEASE AND ANY SCHEDULES OR GRANT A SECURITY INTEREST IN ANY OR ALL EQUIPMENT, OR
BOTH, IN WHOLE OR IN PART TO ONE OR MORE ASSIGNEES OR SECURED PARTIES WITHOUT
NOTICE TO LESSEE. If Lessee is given notice of such assignment it agrees to
acknowledge receipt thereof in writing and Lessee shall execute such additional
documentation as Lessor's assignee and/or secured party shall reasonably
require. Each such assignee and/or secured party shall have all of the rights,
but (except as provided in this Section 17) none of the obligations, of Lessor
under this Least, unless such assignee or secured party expressly agrees to
assume such obligations in writing. Lessee shall not assert against any assignee
and/or secured party any defense, counterclaim or offset that Lessee may have
against Lessor. Notwithstanding any such assignment, and providing no Event of
Default has occurred and is continuing, Lessor, or its assignees, secured
parties, or their agents or assigns, shall not interfere with Lessee's right to
quietly enjoy use of Equipment subject to the terms and conditions of this
Lease. Subject to the foregoing, this Lease inures to the benefit of and is
binding upon the successors and assignees of the parties hereto. Lessee
acknowledges that any such assignment by Lessor will not materially change
Lessee's duties or obligations under the Lease or increase any burden of risk on
Lessee.
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SECTION 18. DEFAULT. (a) Events of Default. Any of the following events or
conditions shall constitute an "Event of Default" hereunder. (i) Any Co-Lessee's
failure to pay any monies due to Lessor hereunder or under any Schedule beyond
the tenth (10th) day after the same is due; (ii) any Co-Lessee's failure to
comply with its obligations under Section 12 or Section 17; (iii) Any
representation or warranty of any Co-Lessee made in this Lease or the Schedules
or in any other agreements, statement or certificate furnished to Lessor in
connection with this Lease or the Schedules shall prove to have been incorrect
in any material respect when made or given; (iv) any Co-Lessee's failure to
comply with or perform any term, covenant, condition, warranty or representation
of this Lease or any Schedule hereto or under any other agreement between Lessee
and Lessor or under any lease or mortgage of real property covering the location
of Equipment if such failure to comply or perform is not cured by any Co-Lessee
within thirty (30) days after Lessee knows of the non-compliance or
nonperformance or notice from Lessor, (v) seizure of the Equipment under legal
process; (vi) the filing by or against any Co-Lessee or any guarantor under any
guaranty executed in connection with this Lease ("Guarantor") of a petition for
reorganization or liquidation under the Bankruptcy Code or any amendment thereto
or under any other insolvency law providing for the relief of debtors; (vii) the
voluntary or involuntary making of an assignment of a substantial portion of its
assets by any Co-Lessee, or by any Guarantor, for the benefit of its creditors,
the appointment of a receiver or trustee for any Co-Lessee or any Guarantor for
any of any Co-Lessee's or Guarantor's assets, the institution by or against any
Co-Lessee or any Guarantor of any formal or informal proceeding for dissolution,
liquidation, settlement of claims against or winding up of the affairs of any
Co-Lessee or any Guarantor, provided that in the case of all such involuntary
proceedings, same are not dismissed within sixty (60) days after commencement;
or (viii) other than as allowed under Section 17 or as otherwise allowed under
any guaranty executed by Guarantor in connection with this Lease, the making by
any Co-Lessee or any Guarantor of a transfer of all or a material portion of any
Co-Lessee's or Guarantor's assets or inventory not in the ordinary course of
business.
(b) Remedies. If any Event of Default has occurred, Lessor may in its
sole discretion exercise one or more of the following remedies with respect to
any or all of the Equipment (i) Lessor may proceed by appropriate court action
or actions either at law or in equity to enforce performance by Co-Lessee, of
the applicable covenants of this Lease, or to recover damages therefor; (ii) any
Co Lessee will, without demand, on the next rent payment date following the
Event of Default, pay to Lessor as liquidated damages which the parties agree
are fair and reasonable undo' the circumstances existing at the time this Lease
is entered into, and not as a penalty, an amount equal to the Casualty Value of
the Equipment set forth in the Casualty Value Table attached to such Equipment's
Schedule together with any rent or other amounts past due and owing by Lessee
hereunder; (iii) Lessor may, without notice to or demand upon any Co-Lessee; (A)
Take possession of the Equipment and lease or sell the same or any portion
thereof, for such period, amount, and to such entity as Lessor shall elect. The
proceeds of such lease or sale will be applied by Lessor (1) first, to pay all
costs and expenses, including reasonable legal fees and disbursements, incurred
by Lessor as a result of the default and the exercise of its remedies with
respect thereto, (2) second, to pay Lessor an amount equal to any unpaid rent or
other amounts past due and payable plus the Casualty Value, to the extent not
previously paid by any Co-Lessee, and (3) third, to reimburse any Co-Lessee for
the Casualty Value to the extent previously paid. Any surplus remaining
thereafter will be retained by Lessor, (B) Take possession of the Equipment and
hold and keep idle the same or any portion thereof.
Each Co-Lessee agrees to pay all reasonable out-of-pocket costs of Lessor
incurred in enforcement of this Lease, the Schedules or any instrument or
agreement required under this Lease, including but not limited to reasonable
outside counsel legal fees and litigation expenses and reasonable fees of
collection agencies ("Remedy Expenses"). At Lessor's request, any Co-Lessee
shall assemble the Equipment and make it available to Lessor at such reasonable
location as Lessor may designate. Each Co-Lessee waives any right it may have to
redeem the Equipment.
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No delay or omission of Lessor, in exercising any right or power arising from
any Event of Default shall prevent Lessor from exercising that right or power if
the Event of Default continues. No waiver of an Event of Default, whether full
or partial, by Lessor or such holder shall be taken to extend to any subsequent
Event of Default, or to impair the rights of Lessor in respect of any damages
suffered as a result of the Event of Default. The giving, taking or enforcement
of any other or additional security, Equipment or guaranty for the payment or
discharge of the Lease obligations and performance of the obligations shall in
no way operate to prejudice, waive or affect Lessor's ownership interest created
under this Lease or any rights, powers or remedies exercised hereunder or
thereunder. Lessor shall not be required first to repossess the Equipment prior
to bringing an action against Lessee for sums owed to Lessor under this Lease or
under any Schedule.
SECTION 19. LATE PAYMENTS. Lessee shall pay to Lessor an amount equal to the
lesser of 8% of any payment owed Lender by Borrower which is not paid when due
(taking into account applicable grace periods), for every month such payment to
not paid when due, but in no event an amount greater than the highest rate
permitted by applicable law. If such amounts have not been received by Lessor at
Lessor's place of business or by Lessor's designated agent by the date such
amounts are due under this Lease, Lessor shall bill Lessee for such charges.
Lessee acknowledges that invoices for rentals due hereunder or under the
Schedules are sent by Lessor for Lessee's convenience only. Lessee's non-receipt
of an invoice will not relieve Lessee of its obligation to make rent payments
hereunder or under the Schedules.
SECTION 20. LESSOR'S EXPENSE. Lessee shall pay Lessor all reasonable costs and
reasonable expenses including reasonable attorney's fees and the fees of
collection agencies, incurred by Lessor (a) in enforcing any of the terms,
conditions or provisions hereof and related to the exercise of its remedies, and
Co) in connection with any bankruptcy or post-judgment proceeding, whether or
not suit is filed and, in each and every action, suit or proceeding, including
any and all appeals and petitions therefrom.
SECTION 21. PAYMENTS BY LESSOR. If Lessee shall fail to make any payment or
perform any act required hereunder (including, but not limited to, maintenance
of any insurance required by Section 12), then Lessor may, but shall not be
required to, after such notice to Lessee as is reasonable under the
circumstances, make such payment or perform such act with the same effect as if
made or performed by Lessee. Lessee will upon demand reimburse Lender for all
sums paid and all costs and expenses incurred in connection with the performance
of any such act.
SECTION 22. OWNERSHIP; PERSONAL PROPERTY. The Equipment shall be and remain
personal property of Lessor, and Lessee shall have no right, title or interest
therein or thereto except as expressly set forth in this Lease, notwithstanding
the manner in which it may be attached or affixed to real property, and upon
termination or expiration of the Lease term, Lessee shall have the duty and
Lessor shall have the right to remove the Equipment from the premises where the
same be located whether or not affixed or attached to the real property or any
building, at the cost and expense of Lessee.
SECTION 23. ALTERATIONS; ATTACHMENTS. Other than in conformity with the
manufacturer's warranty and/or functional improvements, no alterations or
attachments shall be made to the Equipment without Lessor's prior written
consent, which shall not be given for changes that will affect the reliability
and utility of the Equipment or which cannot be removed without damage to the
Equipment, or which in any way affect the value of the Equipment for purposes of
resale or re-lease. All attachments and improvements to the Equipment which are
not readily removable without causing material damage to the Equipment or
impairing its original value or utility shall be deemed to be "Equipment" for
purposes of the Lease, and all right, title and interest therein shall
immediately vest in Lessor.
8
<PAGE> 9
SECTION 24. FINANCING STATEMENT. Lessee will execute all financing statements
pursuant to the Uniform Commercial Code and all such other documents reasonably
requested by Lessor to protect Lessor's interests hereunder. Lessee authorizes
Lessor to file financing statements signed only by Lessor (where such
authorization is permitted by law) at all places where Lessor deems necessary.
SECTION 25. MISCELLANEOUS. (a) Each Co-Lessee shall provide Lessor with such
corporate resolutions, financial statements and other documents as Lessor shall
request from tune to time. Co) Each Co-Lessee represents that the Equipment is
being leased hereunder for business purposes. (c) Time is of the essence with
respect to this Lease. (d) Each Co-Lessee shall keep its books and records in
accordance with generally accepted accounting principles and practices
consistently applied and shall deliver to Lessor its annual audited financial
statements, unaudited monthly financial statements to include any financial
information given to each Co-Lessee's Board of Directors, and signed by an
officer of such Co-Lessee and such other unaudited financial statements as may
be reasonably requested by Lessor. (e) Any action by any Co-Lessee against
Lessor for any default by Lessor under this Lease, including breach of warranty
or indemnity, shall be commenced within one (1) year after any such cause of
action accrues. (f) Each Co-Lessee will notify Lessor at least 30 days prior to
changing its name, principal place of business or chief executive office, (g)
The obligations of each Co-Lessee hereunder shall survive the expiration or
earlier termination of this Lease and the Schedules until all such obligations
of each Co- Lessee to Lessor have been met and all liabilities of each Co-Lessee
to Lessor or any assignee have been paid in full. (h) Each Co-Lessee hereby
appoints Lessor (and each of Lessor's officers or employees designated by
Lessor) with full power of substitution by Lessor, as each Co-Lessee's attorney,
with power to execute and deliver on each Co-Lessee's behalf, financing
statements and other documents necessary to perfect and/or give notice of
Lessor's ownership of any of the Equipment.
SECTION 26. NOTICES. All notices hereunder shall be in writing, by registered
mail, or reliable messenger or delivery service and shall be directed, as the
case may be, to Lessor at 2401 Kerner Boulevard, San Rafael, California 94901,
Attention: Asset Management and to Lessee at 565 Commercial Street, 2nd Floor,
San Francisco, California 94111, Attention: Layton Han, CFO.
SECTION 27. ENTIRE AGREEMENT. Lessee acknowledges that Lessee has read this
Lease, understands it and agrees to be bound by its terms, and further agrees
that the Lease and each Schedule constitute the entire agreement between Lessor
and Lessee with respect to the subject matter hereof and supersedes all previous
agreements, promises, or representations. The terms and conditions hereof shall
prevail notwithstanding any variance with the terms of any purchase order
submitted by the Lessee with respect to any Equipment covered hereby.
SECTION 28. AMENDMENT. This Lease may not be changed, altered or modified except
by an instrument in writing signed by an officer of the Lessor and the Lessee.
SECTION 29. WAIVER. Any failure of Lessor to require strict performance by
Lessee or any waiver by Lessor of any provision herein shall not be construed as
a consent or waiver of any other breach of the same or any other provision.
SECTION 30. SEVERABILITY. If any provision of this Lease or a Schedule is held
invalid, such invalidity shall not affect any other provisions hereof or
thereof.
SECTION 31. JURISDICTION AND WAIVER OF JURY TRIAL. This Lease shall be deemed to
have been negotiated, entered into and performed in the State of California and
it is understood and agreed that the
9
<PAGE> 10
validity of this Lease and of any of its terms and provisions, as well as the
rights and duties of the parties to this Lease, shall be construed pursuant to
and in accordance with the laws of the State of California, without giving
effect to conflicts of law principles. It is agreed that exclusive jurisdiction
and venue for any legal action between the parties arising out of this Lease
shah be in the Superior Court for Marin County, California, or, in cases where
Federal diversity jurisdiction is available, in the United States District Court
for the Northern District of California situated in San Francisco. LESSEE, TO
THE EXTENT IT MAY LAWFULLY DO SO, HEREBY WAIVES ITS RIGHT TO TRIAL BY JURY IN
ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS LEASE, ANY SCHEDULE, OR ANY
AGREEMENT EXECUTED IN CONNECTION HEREWITH.
SECTION 32. NATURE OF TRANSACTION. Lessor makes no representation whatsoever,
express or implied, concerning the legal character of the transaction evidenced
hereby, for tax or any other purpose.
SECTION 33. SECURITY INTEREST. (a) One executed copy of the Lease will be marked
"Original" and all other counterparts will be duplicates. To the extent, if any,
that this Lease constitutes chattel paper (as such term is defined in the
Uniform Commercial Code as in effect in any applicable jurisdiction) no security
interest in the Lease may be created in any documents other than the "Original."
(b) There shall be only one original of each Schedule and it shall be marked
"Original," and all other counterparts will be duplicates. To the extent, if
any, that any Schedule(s) to this Lease constitutes chattel paper (or as such
term is defined in the Uniform Commercial Code as in effect in any applicable
jurisdiction) no security interest in any Schedule(s) may be created in any
documents other than the "Original."
SECTION 34. SUSPENSION OF LESSOR'S OBLIGATIONS. The obligations of Lessor
hereunder will be suspended to the extent that Lessor is hindered or prevented
from complying therewith because of labor disturbances, including but not
limited to strikes and lockouts, acts of God, fires, storms, accidents,
industrial unrest, acts of war, insurrection, riot or civil disorder, any order,
decree, law, failure of the manufacturer to deliver any item of Equipment,
governmental regulations or interfere , or any cause whatsoever not within the
sole and exclusive control of Lessor.
SECTION 35. SOFTWARE. For the term of this Lease, and so long as no Event of
Default has occurred and is continuing, Lessor hereby assigns to Lessee all of
Lessor's rights under any license agreement executed by Lessor in connection
with the Equipment (except for any right of Lessor to be reimbursed for the
license fee). Lessee agrees to be bound by the provisions of any such license
agreement and to perform all obligations of Lessor (except Lessor's payment
obligations) thereunder. Lessee acknowledges that all of Lessee's obligations
under the Lease with respect to the Equipment will apply equally to the
software, including but not limited to Lessee's obligation to pay rent to
Lessor.
SECTION 36. STOCK WARRANT. Lessee agrees that it will issue to Lessor upon
execution of this Lease a Warrant in the form of Warrant Agreement attached
hereto as Exhibit B. Lessee and Lessor agree that the value of the Warrant
hereunder is ten dollars ($10.00).
SECTION 37. COMMITMENT FEE. Lessee has paid to Lessor a commitment fee ("Fee")
of $5,000. The Fee shall be applied by Lessor first to reimburse Lessor for all
out-of-pocket UCC and other search costs, inspections and appraisal fees
incurred by Lessor, and then proportionally to the first month's rent for each
Schedule hereunder in the proportion that the purchase price of the Equipment
leased pursuant to the Schedule bears to Lessor's entire commitment. However,
the portion of the Fee which is not applied to rental shall be non-refundable
except if Lessor defaults in its obligations pursuant to Section 3.
10
<PAGE> 11
SECTION 38. FINANCE LEASE. The parties agree that this lease is a "Finance
Lease" as defined by section 10-103(a)(7) of the California Commercial Code
(Cal. Com. C.). Lessee acknowledges either (a) that Lessee has reviewed and
approved any written Supply Contract (as defined by Cal. Com. C. Section
10-103(a)(25)) covering Equipment purchased from the "Supplier" (as defined by
Cal. Com. C. Section 10-103(a)(24)) thereof for lease to Lessee or (b) that
Lessor has informed or advised Lessee, in writing, either previously or by this
Lease of the following: (I) the identity of the Supplier; (ii) that the Lessee
may have rights under the Supply Contract; and (iii) that the Lessee may contact
the Supplier for a description of any such rights Lessee may have under the
Supply Contract. Lessee hereby waives any rights and remedies Lessee may have
under Cal. Com. C. Sections 10-508 through 522.
SECTION 39. END OF LEASE POSITION. (a) General. Lessee shall be required to
choose a final purchase or extension of Equipment requirement ("End of Lease
Position") at the expiration of the Base Term (as defined in the Schedule) of
each Schedule to the Lease. That choice shall be an election of Lessee's End of
Lease Position for all, but not less than all, of the Equipment under each
Schedule to the Lease. Lessee shall provide written notice of its election to
Lessor at least 90 days prior to the end of the Base Term of each Schedule.
Any Equipment purchase election shall be a purchase of the Equipment, AS-IS,
WHERE-IS. Upon Lessor's receipt of the purchase price, Lessor shall issue to
Lessee an equipment bill of sale, transferring title to the Equipment to the
Lessee without any representation or warranty other than a warranty that such
Equipment is free and clear of liens and encumbrances resulting from acts of
Lessor. Lessee shall be responsible for all applicable taxes in connection with
any Equipment purchase.
In the event Lessee does not provide at least 90 days' prior written notice of
its election, Lessee shall be deemed to have elected Election No. 2.
(b) End of Lease Position Elections. At the expiration of the Base Term of each
Schedule, Lessee shall be required to elect to either:
Election No. 1: Purchase the Equipment for 20% of the Equipment's original
purchase price.
Election No. 2: Extend the Schedule's Base Term for an additional 12 months
("Extended Term") for a monthly rate of 2.05% of the Equipment's original
purchase price.
At the expiration of the Extended Term, Lessee shall purchase the Equipment for
$1.00.
SECTION 40, ADJUST-A-LEASE OPTION: General : After the first 12 months of the
term of any Schedule ("Old Schedule"), Lessee shall have the option to remove
all or part of such Old Schedule's Equipment ("Removed Equipment") and obtain
financing from Lessor for new Equipment ("New Equipment") under a new Schedule
("New Schedule"), subject to the following:
(a) New Schedule Amount: The principal amount of the New Schedule shall
be the sum of: (I) the remaining payments attributable to the Removed Equipment
due under the Old Schedule, including the End of Lease Position payment,
("Remaining Payments") and (ii) the cost of the New Equipment. The Remaining
Payments shall be discounted to present value at a rate of 6% per annum,
compounded monthly. The principal amount of the New Schedule shall be reduced by
any trade-in value or resale proceeds received by Lessor for the Removed
Equipment if Lessee or Lessor, on Lessee's behalf, sells the Removed Equipment.
For purposes of this Section, the Remaining Payments shall be assumed to be the
greatest amount Lessee would be required to
11
<PAGE> 12
pay under Election No. 1 in Section 39 above.
(b) Old Schedule Amount: If any item of Equipment remains on the Old
Schedule, the monthly payment amount for the Old Schedule will be reduced in
proportion to the Removed Equipment's value.
(c) Option Preconditions: Lessee's right to exercise this Adjust-A-Lease
Option ("Option") is conditioned upon the following: (I) no Event of Default
under the Lease has theretofore occurred and is continuing; (ii) the New
Schedule financing terms are subject to Lessor's then current lease rates and
documentation requirements (iii) Lessor is satisfied with Lessee's
creditworthiness; (iv) the New Equipment is acceptable to Lessor; (v) Lessee has
given Lessor at least 90 days' prior written notice of its desire to exercise
the Option; (vi) the dollar amount of the New Schedule using the formula set
forth in (a) above is not less than zero.
SECTION 41. FURTHER ASSURANCES. Lessee shall at its expense take such action and
execute and deliver all acts and instruments and other documents as Lessor may
at any time request to protect, assure or enforce its interests and rights
hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Lease.
LESSOR: CO-LESSEE:
PHOENIX LEASING INCORPORATED INTELLIPOST CORPORATION,
a Delaware corporation
By: /s/ Gregory D. Kilian By: /s/ Layton S. Han
------------------------- ---------------------------
Name: Gregory D. Kilian Name: (Print): Layton S. Han
Title: AVP Title: CFO
CO-LESSEE:
INTELLIPOST CORPORATION, a
California corporation
By: /s/ Layton S. Han
--------------------------
Name (Print): Layton S. Han
Title: CFO
HEADQUARTERS LOCATION:
565 Commercial Street, 2nd Floor
San Francisco, CA 94111
County of San Francisco
EXHIBITS AND SCHEDULES:
Exhibit A - Closing Memorandum
Exhibit B - Stock Warrant
12
DUPLICATE
<PAGE> 13
EXHIBIT A TO
MASTER EQUIPMENT LEASE AGREEMENT NO. 0148
DATED MAY 1, 1998
CLOSING MEMORANDUM
1.* Duly executed Master Equipment Lease marked "Original."
2. Duly executed Schedule marked "Original."
3. Duly executed Certificate of Acceptance. [EXECUTE UPON ACCEPTANCE OF
EQUIPMENT]
4. Insurance Certificates.
5.* Resolutions of Lessee's Board of Directors, including an incumbency
certificate.
6.* Copy of Lessee's articles of incorporation including all amendments,
certified by the Secretary of Lessee as being true and complete and in
full force and effect.
7.* Certificate from the Secretary of State of Lessee's state of
incorporation, from the state in which Lessee's chief executive office
is located, if different, and from each state where Lessee is qualified
to do business, stating Lessee is in good standing or is authorized to
transact business, as the case may be, dated not more than thirty days
prior to the first purchase of Equipment.
8. Real Property Waiver.**
9. UCC Financing Statements.
10.* Stock Warrant.
11. Bill of Sale (for Sale-Leaseback Equipment).
12. UCC search.
13. Equipment List, in form and substance satisfactory to Lessor.
14. Lessee's most recent financial statements.
15. Certificate of Chief Financial Officer stating that no event of default
has occurred, there is no adverse change in the financial condition of
Lessee and that the Equipment is free of any encumbrances.
16. See Section 3 of Master Equipment Lease for additional preconditions to
closing.
17. Intercreditor Agreement, if applicable.
* First Schedule Only.
** Required if any Equipment is a fixture, i.e., attached to real property,
or located in certain states.
13
<PAGE> 14
SCHEDULE
Schedule No. 02 to Lease
Dated as of May 1, 1998
Between INTELLIPOST CORPORATION,
a Delaware corporation, and
INTELLIPOST CORPORATION,
a California corporation, jointly and severally as Lessee
and PHOENIX LEASING INCORPORATED
A. Description and Purchase Price of Equipment
Description of
Equipment
(quantity, model Purchase Mfr./ Street Address
and serial number) Price Rent Vendor City, State and Country
------------------ -------- ---- ------ -----------------------
See Exhibit A attached hereto.
Total: $164,038.02 $3,247.95 Months 1-12
$4,904.74 Months 13-42
B. Terms
Base Term: The Base Term shall commence on the date the Equipment is
received, installed and accepted for use, as shown on the
Acceptance Notice, and continue for 42 full months after the
"Rent Start Date."
Rent Start Date: This shall be the first day of the month following the
month during which the Base Term commences; provided,
however, that if the Equipment is accepted on the first day
of the month, the Rent Start Date shall commence on the
same day that the Base Term commences.
Base Rental Payment Per Month: $3,247.95 for Months 1 to 12 and $4,904.74 for
Months 13 to 42, plus applicable taxes, which amount shall be adjusted in
accordance with the Rate Factors and Terms shown hereinbelow:
Lease Rate Factor (expressed as a percentage of Equipment's original Purchase
Price):
1.98% for months 1-12 and 2.99% for months 13-42
Monthly Rental Payments are payable monthly in advance.
Base Rent Due: Payable on the Rent Start Date shall be (1) the first and
forty-second Monthly Rental Payments including any sales or
use tax and (2) an amount equal to 1/30th of the monthly
rental amount using a rate of 1.9% multiplied by the number
of days, if any, between (and including) the date the Base
Term commences and (but not including) the Rent Start Date,
except that, if the date of the Acceptance Notice related to
this Schedule is dated on or after the 20th of the month,
this amount shall not be included in the Base Rent Due.
<PAGE> 15
Schedule No. 02 to Lease
Dated as of May 1, 1998
Between INTELLIPOST CORPORATION,
a Delaware corporation, and
INTELLIPOST CORPORATION,
a California corporation, jointly and severally as Lessee
and PHOENIX LEASING INCORPORATED
C. Invoice Information: Lessee's and Lessor's addresses for invoice purposes for
the Equipment on the Schedule shall be as follows:
Lessee's Invoice Address: Remit Monthly Rental Amount To:
-------------------------------- -------------------------------
Intellipost Corporation Phoenix Leasing Incorporated
565 Commercial Street, 2nd Floor P.O. Box 200432
San Francisco, CA 94111 Dallas, TX 75320-0432
Attention: Layton Han, CFO
D. Casualty Values: See attachment hereto.
E. Special Provisions: 1. Lessor's payment for Equipment hereunder is
conditioned on Lessor's satisfaction of the conditions set forth in Section 3 of
the Lease and 2. Sale Leaseback Addendum.
F. End of Lease Position: (a) General. Lessee shall be required to choose a
final purchase or extension of Equipment requirement ("End of Lease Position")
at the expiration of the Base Term (as defined in the Schedule) of each
Schedule to the Lease. That choice shall be an election of Lessee's End of
Lease Position for all, but not less than all, of the Equipment under each
Schedule to the Lease. Lessee shall provide written notice of its election to
Lessor at least 90 days prior to the end of the Base Term of each Schedule.
Any Equipment purchase election shall be a purchase of the Equipment, AS-IS,
WHERE-IS. Upon Lessor's receipt of the purchase price, Lessor shall issue to
Lessee an equipment bill of sale, transferring title to the Equipment to the
Lessee without any representation or warranty other than a warranty that such
Equipment is free and clear of liens and encumbrances resulting from acts of
Lessor. Lessee shall be responsible for all applicable taxes in connection with
any Equipment purchase.
In the event Lessee does not provide at least 90 days' prior written notice of
its election, Lessee shall be deemed to have elected Election No. 2.
(b) End of Lease Position Elections. At the expiration of the Base Term of each
Schedule, Lessee shall be required to elect to either:
Election No. 1: Purchase the Equipment for 20% of the Equipment's original
purchase price.
Election No. 2: Extend the Schedule's Base Term for an additional 12 months
("Extended Term") for a monthly rate of 2.05% of the Equipment's original
purchase price.
At the expiration of the Extended Term, Lessee shall purchase the Equipment for
$1.00.
<PAGE> 16
Schedule No. 02 to Lease
Dated as of May 1, 1998
Between INTELLIPOST CORPORATION,
a Delaware corporation, and
INTELLIPOST CORPORATION,
a California corporation, jointly and severally as Lessee
and PHOENIX LEASING INCORPORATED
LESSOR AND EACH CO-LESSEE AGREE THAT THIS SCHEDULE SHALL CONSTITUTE A LEASE OF
THE EQUIPMENT DESCRIBED ABOVE, SUBJECT TO THE TERMS AND CONDITIONS OF THIS
SCHEDULE AND OF THE MASTER EQUIPMENT LEASE DATED MAY 1, 1998 BETWEEN EACH
CO-LESSEE AND LESSOR. THE TERMS AND CONDITIONS OF SUCH MASTER EQUIPMENT LEASE
ARE HEREBY INCORPORATED BY REFERENCE AND MADE A PART HEREOF TO THE SAME EXTENT
AS IF SUCH TERMS AND CONDITIONS WERE SET FORTH IN FULL HEREIN.
LESSOR: CO-LESSEE:
PHOENIX LEASING INCORPORATED INTELLIPOST CORPORATION, a Delaware
corporation
By: /s/ LYNN SANDERS By: /s/ LAYTON S. HAN
------------------------------- ------------------------------------
Name: Lynn Sanders Name (Print): Layton S. Han
----------------------------- --------------------------
Title: Contract Administrator Title: CFO
---------------------------- ---------------------------------
Date: 6/22/98 Date: 6/22/98
----------------------------- ----------------------------------
CO-LESSEE:
INTELLIPOST CORPORATION, a California
corporation
By: /s/ LAYTON S. HAN
------------------------------------
Name (Print): Layton S. Han
--------------------------
Title: CFO
---------------------------------
Date: 6/22/98
----------------------------------
<PAGE> 17
ACCEPTANCE NOTICE
SCHEDULE NO. 02
Reference is made to the Master Equipment Lease dated as of May 1, 1998 between
PHOENIX LEASING INCORPORATED as Lessor and INTELLIPOST CORPORATION, a California
corporation and INTELLIPOST CORPORATION, a Delaware corporation, jointly and
severally, as Lessee (the "Lease").
Lessee confirms that the following Equipment has been received, installed and
is ready for use by Lessee. The Equipment is satisfactory in all respects for
the purposes of this Lease as of the date Lessee executes this Notice below.
Description of
Equipment
(quantity, model Purchase Mfr./ Street Address
and serial number) Price Rent Vendor City, State and County
------------------ -------- ---- ------ ----------------------
See Exhibit A attached hereto.
Total: $164,038.02 $3,247.95 Months 1-12
$4,904.74 Months 13-42
THE LEASE MAY NOT BE CHANGED, ALTERED OR MODIFIED EXCEPT BY AN INSTRUMENT IN
WRITING SIGNED BY AN OFFICER OF LESSOR AND A DULY AUTHORIZED REPRESENTATIVE OF
LESSEE.
IN WITNESS WHEREOF, Lessee has executed this Acceptance Notice as of June 22,
1998.
CO-LESSEE:
INTELLIPOST CORPORATION, a Delaware corporation
By: /s/ LAYTON S. HAN
--------------------------------------------
Name (Print): Layton S. Han
----------------------------------
Title: CFO
-----------------------------------------
CO-LESSEE:
INTELLIPOST CORPORATION, a California corporation
By: /s/ LAYTON S. HAN
--------------------------------------------
Name (Print): Layton S. Han
----------------------------------
Title: CFO
-----------------------------------------
<PAGE> 18
ATTACHMENT TO EQUIPMENT SCHEDULE NO. 02
CASUALTY VALUES
Month of % of Original Equipment Month of % of Original Equipment
Lease Term Purchase Price Lease Term Purchase Price
---------- ------------------------ ---------- ------------------------
1 125.00 22 73.78
2 122.56 23 71.34
3 120.12 24 68.90
4 117.68 25 66.46
5 115.24 26 64.02
6 112.80 27 61.59
7 110.37 28 59.15
8 107.93 29 56.71
9 105.49 30 54.27
10 103.05 31 51.83
11 100.61 32 49.39
12 98.17 33 46.95
13 95.73 34 44.51
14 93.29 35 42.07
15 90.85 36 39.63
16 88.41 37 37.20
17 85.98 38 34.76
18 83.54 39 32.32
19 81.10 40 29.88
20 78.66 41 27.44
21 76.22 42 25.00
Thereafter 25.00
Lessor's Co-Lessee's
Initials LS Initials LH
---- ----
Co-Lessee's
Initials LH
----
<PAGE> 19
ATTACHMENT 1
BILL OF SALE
For valuable consideration INTELLIPOST CORPORATION, a California corporation and
INTELLIPOST CORPORATION, a Delaware corporation, (jointly and severally,
("Seller") sells to PHOENIX LEASING INCORPORATED ("Buyer"), the property listed
on Exhibit A hereof (the "Equipment").
Seller covenants and warrants that:
(1) It is the owner of, and has absolute title to, the Equipment which is
free and clear of all claims, liens and encumbrances.
(2) It has not made any prior sale, assignment, or transfer of the
Equipment.
(3) It has the present right, power, and authority to sell the Equipment to
Buyer.
(4) All action has been taken which is required to make this Bill of Sale a
legal, valid and binding obligation of Seller.
Seller shall forever warrant and defend the sale of Equipment to Buyer, its
successors and assigns, against any person claiming an interest in the
Equipment.
This Bill of Sale is binding on the successors and assigns of Seller and inures
to the benefit of the successors and assigns of Buyer.
Executed on June 22 , 1998.
---------------- --
CO-LESSEE:
INTELLIPOST CORPORATION, a Delaware corporation
By: /s/ LAYTON S. HAN
-----------------------------
Name (Print): Layton S. Han
Title: CFO
--------------------------
CO-LESSEE:
INTELLIPOST CORPORATION, a California corporation
By: /s/ LAYTON S. HAN
-----------------------------
Name (Print): Layton S. Han
Title: CFO
--------------------------
<PAGE> 20
SALE LEASEBACK ADDENDUM
to Schedule No. 02
of MASTER EQUIPMENT LEASE
Dated May 1, 1998
Between INTELLIPOST CORPORATION,
a Delaware Corporation, and
INTELLIPOST CORPORATION,
a California corporation, jointly and severally as Lessee
and PHOENIX LEASING INCORPORATED
This Addendum to Master Equipment Lease is made and entered into as of June 22,
1998 between PHOENIX LEASING INCORPORATED ("LESSOR") and INTELLIPOST
CORPORATION, a California corporation and INTELLIPOST CORPORATION, a Delaware
corporation, (jointly and severally, "Lessee").
Notwithstanding anything to the contrary contained in the Lease referenced
above, Lessor and Lessee agree as follows:
1. Lessee shall sell the Equipment to and lease the Equipment from Lessor and
Lessor shall purchase the Equipment from and lease the Equipment to Lessee
upon the terms and conditions of the Bill of Sale attached hereto as
Attachment 1.
2. Lessee represents and warrants that:
(a) Lessee has the right to sell the Equipment as set forth herein,
(b) the Equipment and Lessee's right, title and interest in such Equipment
is, as of the date of the Bill of Sale, free from all claims, liens,
security interests and encumbrances,
(c) Lessee will defend the sale against lawful claims and demands of all
persons, and
(d) the purchase price of the Equipment is equal to the fair market value
of such Equipment at the time of sale.
LESSOR: CO-LESSEE:
PHOENIX LEASING INCORPORATED INTELLIPOST CORPORATION, a Delaware
corporation
By: /s/ LYNN SANDERS By: /s/ LAYTON S. HAN
--------------------------- ------------------------------
Name: Lynn Sanders Name: Layton S. Han
------------------------- -------------------------
Title: Contract Administrator Title: CFO
------------------------ ------------------------
CO-LESSEE:
INTELLIPOST CORPORATION, a California
corporation
By: /s/ LAYTON S. HAN
------------------------------
Name: Layton S. Han
-------------------------
Title: CFO
------------------------
<PAGE> 21
Phoenix Leasing Incorporated
Funding Request
Exhibit A
Lessee: INTELLIPOST CORPORATION
--------------------------
565 COMMERCIAL STREET
Master Contract: 0148 Schedule: 02
-------------------------- -------
---------------------------------------------------------------------------------------
L
Item Invoice Description Eq Serial o
No Vendor Name No. of item Cd Qty Number c
---------------------------------------------------------------------------------------
1 Trans National 9811390 software 24 1 1
--------------------------------------------------------------------------------------
2 DELL 151204120 DELL DIMENSION 1 2 1
--------------------------------------------------------------------------------------
3 TAX 29 1 1
--------------------------------------------------------------------------------------
4 FREIGHT 27 1 1
--------------------------------------------------------------------------------------
5 ORACLE 976026 SILVER ADVANCE 24 1 1
--------------------------------------------------------------------------------------
6 TAX 29 1 1
--------------------------------------------------------------------------------------
7 DELL 146954243 INSPIRON 1 2 1
--------------------------------------------------------------------------------------
8 TAX 29 1 1
--------------------------------------------------------------------------------------
9 FREIGHT 27 1 1
--------------------------------------------------------------------------------------
10 DELL 143909783 DELL DIMENSION 1 2 1
--------------------------------------------------------------------------------------
11 TAX 29 1 1
--------------------------------------------------------------------------------------
12 FREIGHT 27 1 1
--------------------------------------------------------------------------------------
13 DELL 155853708 LATITUDE 1 1 1
--------------------------------------------------------------------------------------
14 TAX 29 1 1
--------------------------------------------------------------------------------------
15 FREIGHT 27 1 1
--------------------------------------------------------------------------------------
16 DELL 158289207 DELL DIMENSION 1 1 1
--------------------------------------------------------------------------------------
17 TAX 29 1 1
--------------------------------------------------------------------------------------
18 FREIGHT 27 1 1
--------------------------------------------------------------------------------------
19 DELL 158263434 INSPIRON 1 1 1
--------------------------------------------------------------------------------------
20 TAX 29 1 1
--------------------------------------------------------------------------------------
21 FREIGHT 27 1 1
--------------------------------------------------------------------------------------
22 Millennia Vision 775 LX PRO 6/200 1 1 1
--------------------------------------------------------------------------------------
23 TAX 29 1 1
--------------------------------------------------------------------------------------
24 Millennia Vision 797 HP INSTALLATION 1 1 1
--------------------------------------------------------------------------------------
25 TAX 29 1 1
--------------------------------------------------------------------------------------
26 FREIGHT 27 1 1
--------------------------------------------------------------------------------------
27 Millennia Vision 819 HP-128-MB 1 1 1
--------------------------------------------------------------------------------------
28 TAX 29 1 1
--------------------------------------------------------------------------------------
29 FREIGHT 27 1 1
--------------------------------------------------------------------------------------
30 ICI, INC 1067 BLK CONF CHAIRS 6 8 1
--------------------------------------------------------------------------------------
31 SLV CONF CHAIRS 6 8 1
--------------------------------------------------------------------------------------
32 CONF TBL & MODIF 6 2 1
--------------------------------------------------------------------------------------
33 CREDENZA 6 1 1
--------------------------------------------------------------------------------------
34 OFFICE 1-SHELL 6 1 1
--------------------------------------------------------------------------------------
35 CORNER DESK 6 1 1
--------------------------------------------------------------------------------------
36 2 DRW FILE CAB 6 1 1
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No entry required
Total Tax Pd ---------------------
Invoic'd $ $ Pd By Vndr? Chk Transact Net $ Due Net $ Due
Net of Sls Tx Lessee (Y/N) No. Date Lessee Vendor
--------------------------------------------------------------------------------------
1 11,157.79 11,157.79 Y 1646 4/22/98 $11,157.79 $0.00
--------------------------------------------------------------------------------------
2 5,426.00 5,426.00 Y 5740 5/12/98 $5,426.00 $0.00
--------------------------------------------------------------------------------------
3 478.26 478.26 Y 5740 5/12/98 $478.26 $0.00
--------------------------------------------------------------------------------------
4 200.00 200.00 Y 5740 5/21/98 $200.00 $0.00
--------------------------------------------------------------------------------------
5 1,200.00 1,200.00 Y 5723 5/5/98 $1,200.00 $0.00
--------------------------------------------------------------------------------------
6 102.00 102.00 Y 5723 5/5/98 $102.00 $0.00
--------------------------------------------------------------------------------------
7 6,048.00 6,048.00 Y 5468 3/13/98 $6,048.00 $0.00
--------------------------------------------------------------------------------------
8 518.42 518.42 Y 5468 3/13/98 $518.42 $0.00
--------------------------------------------------------------------------------------
9 50.00 50.00 Y 5468 3/13/98 $50.00 $0.00
--------------------------------------------------------------------------------------
10 5,402.00 5,402.00 Y 5751 5/15/98 $5,402.00 $0.00
--------------------------------------------------------------------------------------
11 468.58 468.58 Y 5751 5/15/98 $468.58 $0.00
--------------------------------------------------------------------------------------
12 110.00 110.00 Y 5751 5/15/98 $110.00 $0.00
--------------------------------------------------------------------------------------
13 4,610.68 4,610.68 Y 5801 5/28/98 $4,610.68 $0.00
--------------------------------------------------------------------------------------
14 395.06 395.06 Y 5801 5/28/98 $395.06 $0.00
--------------------------------------------------------------------------------------
15 37.00 37.00 Y 5801 5/28/98 $37.00 $0.00
--------------------------------------------------------------------------------------
16 1,802.00 1,802.00 Y 5806 6/4/98 $1,802.00 $0.00
--------------------------------------------------------------------------------------
17 164.26 164.26 Y 5806 6/4/98 $164.26 $0.00
--------------------------------------------------------------------------------------
18 130.00 130.00 Y 5806 6/4/98 $130.00 $0.00
--------------------------------------------------------------------------------------
19 2,944.00 2,944.00 Y 5861 6/4/98 $2,944.00 $0.00
--------------------------------------------------------------------------------------
20 253.04 253.04 Y 5861 6/4/98 $253.04 $0.00
--------------------------------------------------------------------------------------
21 33.00 33.00 Y 5861 6/4/98 $33.00 $0.00
--------------------------------------------------------------------------------------
22 19,204.20 $0.00 $19,204.20
--------------------------------------------------------------------------------------
23 1,632.36 $0.00 $1,632.36
--------------------------------------------------------------------------------------
24 1,795.50 $0.00 $1,795.50
--------------------------------------------------------------------------------------
25 152.62 $0.00 $152.62
--------------------------------------------------------------------------------------
26 6.67 $0.00 $6.67
--------------------------------------------------------------------------------------
27 6,458.00 $0.00 $6,458.00
--------------------------------------------------------------------------------------
28 548.93 $0.00 $548.93
--------------------------------------------------------------------------------------
29 37.70 $0.00 $37.70
--------------------------------------------------------------------------------------
30 8,284.56 8,284.56 N 1592 2/25/98 $8,284.56 $0.00
--------------------------------------------------------------------------------------
31 6,840.00 6,840.00 N 1592 2/25/98 $6,840.00 $0.00
--------------------------------------------------------------------------------------
32 6,167.08 6,167.08 N 1592 2/25/98 $6,167.08 $0.00
--------------------------------------------------------------------------------------
33 1,270.25 1,270.25 N 1611 2/25/98 $1,270.25 $0.00
--------------------------------------------------------------------------------------
34 489.87 489.87 N 1611 2/25/98 $489.87 $0.00
--------------------------------------------------------------------------------------
35 709.18 709.18 N 1611 2/25/98 $709.18 $0.00
--------------------------------------------------------------------------------------
36 1,392.72 1,392.72 N 1611 2/25/98 $1,392.72 $0.00
--------------------------------------------------------------------------------------
Page 1 of 3
Property of Phoenix Leasing Incorporated
<PAGE> 22
Phoenix Leasing Incorporated
Funding Request
Exhibit A
Lessee: INTELLIPOST CORPORATION
--------------------------
565 COMMERCIAL STREET
Master Contract: 0148 Schedule: 02
-------------------------- -------
--------------------------------------------------------------------------------------
L
Item Invoice Description Eq Serial o
No Vendor Name No. of item Cd Qty Number c
--------------------------------------------------------------------------------------
37 WALL CABINET 6 1 1
--------------------------------------------------------------------------------------
38 TACK BOARD 6 1 1
--------------------------------------------------------------------------------------
39 TASKLIGHT 6 1 1
--------------------------------------------------------------------------------------
40 CONF TBL & MODIF 6 1 1
--------------------------------------------------------------------------------------
41 OFFICE 2-DESK 6 1 1
--------------------------------------------------------------------------------------
42 BRIDGE 6 1 1
--------------------------------------------------------------------------------------
43 CORNER DESK 6 1 1
--------------------------------------------------------------------------------------
44 FILE 6 1 1
--------------------------------------------------------------------------------------
45 WALL CABINET 6 1 1
--------------------------------------------------------------------------------------
46 TACK BOARD 6 1 1
--------------------------------------------------------------------------------------
47 TASKLIGHT 6 1 1
--------------------------------------------------------------------------------------
48 OFFICE 5-DESK 6 1 1
--------------------------------------------------------------------------------------
49 BRIDGE 6 1 1
--------------------------------------------------------------------------------------
50 CORNER DESK 6 1 1
--------------------------------------------------------------------------------------
51 FILE 6 1 1
--------------------------------------------------------------------------------------
52 WALL CABINET 6 1 1
--------------------------------------------------------------------------------------
53 TACK BOARD 6 1 1
--------------------------------------------------------------------------------------
54 TASKLIGHT 6 1 1
--------------------------------------------------------------------------------------
55 OFFICE 6-DESK 6 1 1
--------------------------------------------------------------------------------------
56 BRIDGE 6 1 1
--------------------------------------------------------------------------------------
57 CORNER DESK 6 1 1
--------------------------------------------------------------------------------------
58 FILE 6 1 1
--------------------------------------------------------------------------------------
59 WALL CABINET 6 1 1
--------------------------------------------------------------------------------------
60 TACK BOARD 6 1 1
--------------------------------------------------------------------------------------
61 TASKLIGHT 6 1 1
--------------------------------------------------------------------------------------
62 OVAL COFFEE TBL 6 1 1
--------------------------------------------------------------------------------------
63 SIDE TABLE 6 1 1
--------------------------------------------------------------------------------------
64 LOUNGE CHAIRS 6 2 1
--------------------------------------------------------------------------------------
65 SOFA 6 1 1
--------------------------------------------------------------------------------------
66 GUEST CHAIRS 6 2 1
--------------------------------------------------------------------------------------
67 OFFICE 7-SHELL 6 1 1
--------------------------------------------------------------------------------------
68 CORNER DISK 6 1 1
--------------------------------------------------------------------------------------
69 FILE 6 1 1
--------------------------------------------------------------------------------------
70 WALL CABINET 6 1 1
--------------------------------------------------------------------------------------
71 TACK BOARD 6 1 1
--------------------------------------------------------------------------------------
72 TASKLIGHT 6 1 1
--------------------------------------------------------------------------------------
73 OFFICE 8-DESK 6 1 1
--------------------------------------------------------------------------------------
74 LEFT RETURN 6 1 1
--------------------------------------------------------------------------------------
75 FILE 6 1 1
--------------------------------------------------------------------------------------
76 WALL CABINET 6 1 1
--------------------------------------------------------------------------------------
77 TACKBOARD 6 1 1
--------------------------------------------------------------------------------------
78 TASKLIGHT 6 1 1
--------------------------------------------------------------------------------------
79 CONF TBL & MODIF 6 1 1
--------------------------------------------------------------------------------------
80 PRV OFFICE CHAIRS 6 6 1
--------------------------------------------------------------------------------------
81 PRV OFFICE CHAIRS 6 1 1
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No entry required
Total Tax Pd ---------------------
Invoic'd $ $ Pd By Vndr? Chk Transact Net $ Due Net $ Due
Net of Sls Tx Lessee (Y/N) No. Date Lessee Vendor
--------------------------------------------------------------------------------------
37 683.54 638.54 N 1611 2/25/98 $683.54 $0.00
--------------------------------------------------------------------------------------
38 131.01 131.01 N 1610 2/25/98 $131.01 $0.00
--------------------------------------------------------------------------------------
39 142.41 142.41 N 1610 2/25/98 $142.41 $0.00
--------------------------------------------------------------------------------------
40 586.71 586.71 N 1610 2/25/98 $586.71 $0.00
--------------------------------------------------------------------------------------
41 945.57 945.57 N 1610 2/25/98 $945.57 $0.00
--------------------------------------------------------------------------------------
42 196.52 196.52 N 1610 2/25/98 $196.52 $0.00
--------------------------------------------------------------------------------------
43 709.18 709.18 N 1610 2/25/98 $709.18 $0.00
--------------------------------------------------------------------------------------
44 985.44 985.44 N 1610 2/25/98 $985.44 $0.00
--------------------------------------------------------------------------------------
45 800.32 800.32 N 1610 2/25/98 $800.32 $0.00
--------------------------------------------------------------------------------------
46 131.01 131.01 N 1610 2/25/98 $131.01 $0.00
--------------------------------------------------------------------------------------
47 142.41 142.41 N 1610 2/25/98 $142.41 $0.00
--------------------------------------------------------------------------------------
48 945.57 945.57 N 1610 2/25/98 $945.57 $0.00
--------------------------------------------------------------------------------------
49 273.42 273.42 N 5878 6/10/98 $273.42 $0.00
--------------------------------------------------------------------------------------
50 709.18 709.18 N 5878 6/10/98 $709.18 $0.00
--------------------------------------------------------------------------------------
51 917.09 917.09 N 5878 6/10/98 $917.09 $0.00
--------------------------------------------------------------------------------------
52 1,116.45 1,116.45 N 5878 6/10/98 $1,116.45 $0.00
--------------------------------------------------------------------------------------
53 262.03 262.03 N 5878 6/10/98 $262.03 $0.00
--------------------------------------------------------------------------------------
54 142.41 142.41 N 5878 6/10/98 $142.41 $0.00
--------------------------------------------------------------------------------------
55 1,166.01 1,166.01 N 5878 6/10/98 $1,166.01 $0.00
--------------------------------------------------------------------------------------
56 225.00 225.00 N 5878 6/10/98 $225.00 $0.00
--------------------------------------------------------------------------------------
57 709.18 709.18 N 5878 6/10/98 $709.18 $0.00
--------------------------------------------------------------------------------------
58 945.57 945.57 N 5878 6/10/98 $945.57 $0.00
--------------------------------------------------------------------------------------
59 888.61 888.61 N 5878 6/10/98 $888.61 $0.00
--------------------------------------------------------------------------------------
60 131.01 131.01 N 5878 6/10/98 $131.01 $0.00
--------------------------------------------------------------------------------------
61 142.41 142.41 N 5878 6/10/98 $142.41 $0.00
--------------------------------------------------------------------------------------
62 694.94 694.94 N 5878 6/10/98 $694.94 $0.00
--------------------------------------------------------------------------------------
63 395.89 395.89 N 5878 6/10/98 $395.89 $0.00
--------------------------------------------------------------------------------------
64 894.38 894.38 N 5878 6/10/98 $894.38 $0.00
--------------------------------------------------------------------------------------
65 784.69 784.69 N 5878 6/10/98 $784.69 $0.00
--------------------------------------------------------------------------------------
66 742.50 742.50 N 5878 6/10/98 $742.50 $0.00
--------------------------------------------------------------------------------------
67 384.49 384.49 N 5878 6/10/98 $384.49 $0.00
--------------------------------------------------------------------------------------
68 709.18 709.18 N 5878 6/10/98 $709.18 $0.00
--------------------------------------------------------------------------------------
69 917.09 917.09 N 5878 6/10/98 $917.09 $0.00
--------------------------------------------------------------------------------------
70 700.63 700.63 N 5878 6/10/98 $700.63 $0.00
--------------------------------------------------------------------------------------
71 131.01 131.01 N 5878 6/10/98 $131.01 $0.00
--------------------------------------------------------------------------------------
72 142.41 142.41 N 5878 6/10/98 $142.41 $0.00
--------------------------------------------------------------------------------------
73 700.31 700.31 N 5878 6/10/98 $700.31 $0.00
--------------------------------------------------------------------------------------
74 433.93 433.93 N 5878 6/10/98 $433.93 $0.00
--------------------------------------------------------------------------------------
75 762.19 762.19 N 5878 6/10/98 $762.19 $0.00
--------------------------------------------------------------------------------------
76 877.50 877.50 N 5878 6/10/98 $877.50 $0.00
--------------------------------------------------------------------------------------
77 129.38 129.38 N 5878 6/10/98 $129.38 $0.00
--------------------------------------------------------------------------------------
78 140.63 140.63 N 5878 6/10/98 $140.63 $0.00
--------------------------------------------------------------------------------------
79 579.38 579.38 N 5878 6/10/98 $579.38 $0.00
--------------------------------------------------------------------------------------
80 4,613.94 4,613.94 N 5878 6/10/98 $4,613.94 $0.00
--------------------------------------------------------------------------------------
81 1,022.63 1,022.63 N 5878 6/10/98 $1,022.63 $0.00
--------------------------------------------------------------------------------------
Page 2 of 3
Property of Phoenix Leasing Incorporated
<PAGE> 23
Phoenix Leasing Incorporated
Funding Request
Exhibit A
Lessee: INTELLIPOST CORPORATION
--------------------------
565 COMMERCIAL STREET
Master Contract: 0148 Schedule: 02
-------------------------- -------
---------------------------------------------------------------------------------------
L
Item Invoice Description Eq Serial o
No Vendor Name No. of item Cd Qty Number c
---------------------------------------------------------------------------------------
82 PRV OFFICE CHAIRS 6 6 1
--------------------------------------------------------------------------------------
83 FABRIC FOR FURN 6 1 1
--------------------------------------------------------------------------------------
84 DEL & INSTALL 27 1 1
--------------------------------------------------------------------------------------
85 TAX 29 1 1
--------------------------------------------------------------------------------------
86 ICI, INC. 1068 OFFICE 10 & 11 6 1 1
WORKSPACE & MOD
--------------------------------------------------------------------------------------
87 OFFICE 3 WORKSPACE 6 1 1
& MOD
--------------------------------------------------------------------------------------
88 OFFICE 4 DESK 6 1 1
--------------------------------------------------------------------------------------
89 BRIDGE 6 1 1
--------------------------------------------------------------------------------------
90 CORNER DESK 6 1 1
--------------------------------------------------------------------------------------
91 FILE 6 1 1
--------------------------------------------------------------------------------------
92 WALL CABINET 6 1 1
--------------------------------------------------------------------------------------
93 TACKBOARD&FABRIC 6 1 1
--------------------------------------------------------------------------------------
94 TASKLIGHT 6 1 1
--------------------------------------------------------------------------------------
95 FREIGHT & INSTAL 27 1 1
--------------------------------------------------------------------------------------
96 TAX 29 1 1
--------------------------------------------------------------------------------------
97
--------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
No entry required
Total Tax Pd ----------------------
Invoic'd $ $ Pd By Vndr? Chk Transact Net $ Due Net $ Due
Net of Sls Tx Lessee (Y/N) No. Date Lessee Vendor
---------------------------------------------------------------------------------------
82 2,255.70 2,255.70 N 5878 6/10/98 $2,255.70 $0.00
---------------------------------------------------------------------------------------
83 2,000.16 2,000.16 N 5878 6/10/98 $2,000.16 $0.00
---------------------------------------------------------------------------------------
84 2,273.71 2,273.71 N 5878 6/10/98 $2,273.71 $0.00
---------------------------------------------------------------------------------------
85 5,224.77 5,224.77 N 5878 6/10/98 $5,224.77 $0.00
---------------------------------------------------------------------------------------
86 7,696.25 7,696.25 N 1509.91 2/6/98 $7,696.25 $0.00
---------------------------------------------------------------------------------------
87 7,575.55 7,575.55 N 1509.91 2/6/98 $7,575.55 $0.00
---------------------------------------------------------------------------------------
88 961.88 961.88 N 1592 2/9/98 $961.88 $0.00
---------------------------------------------------------------------------------------
89 326.25 326.25 N 1592 2/9/98 $326.25 $0.00
---------------------------------------------------------------------------------------
90 700.31 700.31 N 1592 2/9/98 $700.31 $0.00
---------------------------------------------------------------------------------------
91 762.19 762.19 N 1592 2/9/98 $762.19 $0.00
---------------------------------------------------------------------------------------
92 790.31 790.31 N 1592 2/9/98 $790.31 $0.00
---------------------------------------------------------------------------------------
93 199.38 199.38 N 1592 2/9/98 $199.38 $0.00
---------------------------------------------------------------------------------------
94 140.63 140.63 N 1592 2/9/98 $140.63 $0.00
---------------------------------------------------------------------------------------
95 4,790.66 4,790.66 N 1592 2/9/98 $4,790.66 $0.00
---------------------------------------------------------------------------------------
96 2,035.38 2,035.38 N 1592 2/9/98 $2,035.38 $0.00
---------------------------------------------------------------------------------------
97 $0.00 $0.00
---------------------------------------------------------------------------------------
TOTAL AMOUNT DUE TO LESSEE $134,202.04
--------------------------
TOTAL AMOUNT DUE TO VENDOR $29,835.98
--------------
TOTAL DRAW $164,038.02
--------------
Lessee Signature: [Signature Illegible] Date: 6/18/98
----------------------
Page 3 of 3
Property of Phoenix Leasing Incorporated
<PAGE> 24
OFFICER'S CERTIFICATE
The undersigned, Layton Han, hereby certifies that:
1) I am the Treasurer/Chief Financial Officer of INTELLIPOST CORPORATION, a
Delaware corporation;
ii) as such officer, I am familiar with the terms and conditions of that
certain Master Equipment Lease (the "Lease") dated as of May 1, 1998
between INTELLIPOST CORPORATION, a California corporation and
INTELLIPOST CORPORATION, a Delaware corporation, (jointly and severally,
"Lessee") and PHOENIX LEASING INCORPORATED ("Lessor");
iii) this certificate is delivered in connection with the leasing of certain
equipment under a Schedule with Lessor, the equipment is described in
the Schedule and the equipment is free and clear from any and all liens,
charges, security interests or other encumbrances which may affect
Lessor's right, title or interest in and to the equipment;
iv) there has been no material adverse change in the financial condition of
Lessee from the date of its most recent financial statements, true
copies of which have been delivered to Lessor; and
v) no event which, with the giving of notice or passage of time, or both,
could become an Event of Default under the Lease has occurred and is
continuing.
(vi) Lessee is performing according to Lessee's business plan described in
Section 3 of the Lease, a true copy of which business plan has been
delivered to Lessor;
(vii) the representations and warranties in Section 5 of the Lease are true
and correct as of the date hereof.
IN WITNESS WHEREOF, I hereby execute this certificate on this 12 day of June,
1998.
/s/ LAYTON S. HAN
---------------------------
<PAGE> 25
SCHEDULE
Schedule No. 01 to Lease
Dated as of May 1, 1998
Between INTELLIPOST CORPORATION,
a Delaware corporation, and
INTELLIPOST CORPORATION,
a California corporation, jointly and
severally as Lessee
and PHOENIX LEASING INCORPORATED
A. Description and Purchase Price of Equipment
Description of Equipment
(quantity, model Purchase Mfr./ Street Address
and serial number) Price Rent Vendor City, State and County
------------------------ ---------- ---------------------- ------ ----------------------
See Exhibit A attached hereto.
Total: $96,379.86 $1,908.32 Months 1-12
$2,881.76 Months 13-42
B. Terms
Base Term: The Base Term shall commence on the Equipment is received,
installed and accepted for use, as shown on the Acceptance
Notice, and continue for 42 full months after the "Rent Start
Date."
Rent Start Date: This shall be the first day of the month following the month
during which the Base Term commences; provided, however, that
if the Equipment is accepted on the first day of the month, the
Rent Start Date shall commence on the same day that the Base
Term commences.
Base Rental Payment Per Month: $1,908.32 for Months 1 to 12 and $2,881.76 for
Months 13 to 42, plus applicable taxes, which amount shall be adjusted in
accordance with the Rate Factors and Terms shown hereinbelow:
Lease Rate Factor (expressed as a percentage of Equipment's original Purchase
Price):
1.98% for months 1-12 and 2.99% for months 13-42
Monthly Rental Payments are payable monthly in advance.
Base Rent Due: Payable on the Rent Start Date shall be (1) the first and
forty-second Monthly Rental Payments including any sales or use
tax and (2) an amount equal to 1/30th of the monthly rental
amount using a rate of 1.9% multiplied by the number of days,
if any, between (and including) the date the Base Term
commences and (but not including) the Rent Start Date, except
that, if the date of the Acceptance Notice related to this
Schedule is dated on or after the 20th of the month, this
amount shall not be included in the Base Rent Due.
1
<PAGE> 26
Schedule No. 01 to Lease
Dated May 1, 1998
Between INTELLIPOST CORPORATION,
a Delaware Corporation, and
INTELLIPOST CORPORATION,
a California corporation, jointly and
severally as Lessee
and PHOENIX LEASING INCORPORATED
C. Invoice Information: Lessee's and Lessor's addresses for invoice purposes
for the Equipment on the Schedule shall be as follows:
Lessee's Invoice Address: Remit Monthly Rental Amount To:
------------------------- -------------------------------
Intellipost Corporation Phoenix Leasing Incorporated
565 Commercial Street, 2nd Floor P.O. Box 200432
San Francisco, CA 94111 Dallas, TX 75320-0432
Attention: Layton Han, CFO
D. Casualty Values: See attachment hereto.
E. Special Provisions: 1. Lessor's payment for Equipment hereunder is
conditioned on Lessor's satisfaction of the conditions set forth in Section 3 of
the Lease and 2. Sale Leaseback Addendum.
F. End Of Lease Position: (a) General. Lessee shall be required to choose a
final purchase or extension of Equipment requirement ("End of Lease Position")
at the expiration of the Base Term (as defined in the Schedule) of each
Schedule to the Lease. That choice shall be an election of Lessee's End of
Lease Position for all, but not less than all, of the Equipment under each
Schedule to the Lease. Lessee shall provide written notice of its election to
Lessor at least 90 days prior to the end of the Base Term of each Schedule.
Any Equipment purchase election shall be a purchase of the Equipment, AS-IS,
WHERE-IS. Upon Lessor's receipt of the purchase price, Lessor shall issue to
Lessee an equipment bill of sale, transferring title to the Equipment to the
Lessee without any representation or warranty other than a warranty that such
Equipment is free and clear of liens and encumbrances resulting from acts of
Lessor. Lessee shall be responsible for all applicable taxes in connection with
any Equipment purchase.
In the event Lessee does not provide at least 90 days' prior written notice of
its election, Lessee shall be deemed to have elected Election No. 2.
(b) End of Lease Position Elections. At the expiration of the Base Term of each
Schedule, Lessee shall be required to elect to either:
Election No. 1: Purchase the Equipment for 20% of the Equipment's original
purchase price.
Election No. 2: Extend the Schedule's Base Term for an additional 12 months
("Extended Term") for a monthly rate of 2.05% of the Equipment's original price.
At the expiration of the Extended Term, Lessee shall purchase the Equipment for
$1.00.
2
<PAGE> 27
Schedule No. 01 to Lease
Dated as of May 1, 1998
Between INTELLIPOST CORPORATION,
a Delaware corporation, and
INTELLIPOST CORPORATION,
a California corporation, jointly and
severally as Lessee
and PHOENIX LEASING INCORPORATED
LESSOR AND EACH CO-LESSEE AGREE THAT THIS SCHEDULE SHALL CONSTITUTE A LEASE OF
THE EQUIPMENT DESCRIBED ABOVE, SUBJECT TO THE TERMS AND CONDITIONS OF THIS
SCHEDULE AND OF THE MASTER EQUIPMENT LEASE DATED MAY 1, 1998 BETWEEN EACH
CO-LESSEE AND LESSOR. THE TERMS AND CONDITIONS OF SUCH MASTER EQUIPMENT LEASE
ARE HEREBY INCORPORATED BY REFERENCE AND MADE A PART HEREOF TO THE SAME EXTENT
AS IF SUCH TERMS AND CONDITIONS WERE SET FORTH IN FULL HEREIN.
LESSOR: CO-LESSEE:
PHOENIX LEASING INCORPORATED INTELLIPOST CORPORATION, a Delaware corporation
By: /s/ GREGORY D. KILIAN By: /s/ LAYTON S. HAN
------------------------- ----------------------------
Name: /s/ Gregory D. Kilian Name (Print): Layton S. Han
----------------------- ---------------------------
Title: AVP Title: CFO
----------------------- -------------------------
Date: 6/28/98 Date: June 22, 1998
----------------------- ----------------------------
CO-LESSEE:
INTELLIPOST CORPORATION, a California corporation
By: /s/ LAYTON S. HAN
----------------------------
Name (Print): Layton S. Han
---------------------------
Title: CFO
-------------------------
Date: June 22, 1998
----------------------------
3
<PAGE> 28
ATTACHMENT TO EQUIPMENT SCHEDULE NO. 01
CASUALTY VALUES
Month of % of Original Equipment Month of $ of Original Equipment
Lease Term Purchase Price Lease Term Purchase Price
---------- ----------------------- ---------- -----------------------
1 125.00 22 73.78
2 122.56 23 71.34
3 120.12 24 68.90
4 117.68 25 66.46
5 115.24 26 64.02
6 112.80 27 61.59
7 110.37 28 59.15
8 107.93 29 56.71
9 105.49 30 54.27
10 103.05 31 51.83
11 100.61 32 49.39
12 98.17 33 46.95
13 95.73 34 44.51
14 93.29 35 42.07
15 90.85 36 39.63
16 88.41 37 37.20
17 85.98 38 34.76
18 83.54 39 32.32
19 81.10 40 29.88
20 78.66 41 27.44
21 76.22 42 25.00
Thereafter 25.00
Lessor's Co-Lessee's
Initials GK Initials LH
------- -------
Co-Lessee's
Initials LH
-------
<PAGE> 29
ATTACHMENT 1
BILL OF SALE
For valuable consideration INTELLIPOST CORPORATION, a California corporation and
INTELLIPOST CORPORATION, a Delaware corporation (jointly and severally,
"Seller") sells to PHOENIX LEASING INCORPORATED ("Buyer"), the property listed
on Exhibit A hereof (the "Equipment").
Seller covenants and warrants that:
(1) It is the owner of, and has absolute title to, the Equipment, which is
free and clear of all claims, liens and encumbrances.
(2) It has not made any prior sale, assignment, or transfer of the Equipment.
(3) It has the present right, power, and authority to sell the Equipment to
Buyer.
(4) All action has been taken which is required to make this Bill of Sale a
legal, valid and binding obligation of Seller.
Seller shall forever warrant and defend the sale of Equipment to Buyer, its
successors and assigns, against any person claiming an interest in the
Equipment.
This Bill of Sale is binding on the successors and assigns of Seller and inures
to the benefit of the successors and assigns of Buyer.
Executed on June 22, 1998.
CO-LESSEE:
INTELLIPOST CORPORATION, a Delaware
corporation
By: /s/ LAYTON S. HAN
------------------------------------
Name (Print): Layton S. Han
--------------------------
Title: CFO
---------------------------------
CO-LESSEE:
INTELLIPOST CORPORATION, a California
corporation
By: /s/ LAYTON S. HAN
------------------------------------
Name (Print): Layton S. Han
--------------------------
Title: CFO
---------------------------------
<PAGE> 30
PHOENIX LEASING INCORPORATED
FUNDING REQUEST
EXHIBIT A
-----------------------------------------------------------------------------------------------------------------------------------
70 WilTel V519505 2nd Contract Payment 28 1 1 10,480.46 10,480.46 N 5465 2/24/98 $10,480.46 $0.00 N
-----------------------------------------------------------------------------------------------------------------------------------
71 WilTel V519625 Final Contract Payment 28 1 1 5,240.24 5,240.24 Y 5595 3/31/98 $5,240.24 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
72 Tax 29 1 1 1,440.02 1,440.02 Y 5595 3/31/98 $1,440.02 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
73 WilTel V519624 Fiber Station Module 9 1 1 998.75 998.75 Y 5565 3/24/98 $998.75 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
74 Fiber 6port Exp. 9 1 1 1,275.00 1,275.00 Y 5565 3/24/98
Control $1,275.00 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
75 Key Cap KII 9 5 1 29.75 29.75 Y 5565 3/24/98 $29.75 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
76 Labor 27 1 1 67.20 67.20 Y 5565 3/24/98 $67.20 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
77 Tax 29 1 1 195.81 195.81 Y 5565 3/24/98 $195.81 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
78 Trans National 32098 Quantum DLT Stor 4000, 1 1 1 8,009.80 8,009.80 Y 5679 4/21/98
Computers, Inc. 14 Cart mini Library $8,009.80 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
79 Tax 29 1 1 660.73 660.73 Y 5679 4/21/98 $660.73 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
80 Takashi Kousaka 21998 Part of expense 1 1 1 1,579.95 1,579.95 Y 5479 3/3/98
account-NECX Laser
Jet 400dpi $1,579.95 $0.00 T
-----------------------------------------------------------------------------------------------------------------------------------
81 Tax 29 1 1 31.24 31.24 Y 5479 3/3/98 $31.24 $0.00 ##
-----------------------------------------------------------------------------------------------------------------------------------
82 Takashi Kousaka 21998 Part of expense 9 1 1 1,099.95 1,099.95 Y 5479 3/3/98
account-NECX Intel
Ether Express 24 port
hub $1,099.95 $0.00 T
-----------------------------------------------------------------------------------------------------------------------------------
83 Tax 29 1 1 37.75 37.75 Y 5479 3/3/98 $37.75 $0.00 ##
-----------------------------------------------------------------------------------------------------------------------------------
84 Takashi Kousaka 40798 Part of expense 1 1 1 3,073.00 3,073.00 Y 5668 4/14/98
account-Dell Inspiron
M200st $3,073.00 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
85 Freight 27 1 1 37.00 37.00 Y 5668 4/14/98 $37.00 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
86 Tax 29 1 1 264.36 264.36 Y 5668 4/14/98 $264.36 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
87 Takashi Kousaka 40798 Part of expense 1 2 1 1,259.90 1,259.90 N 5668 4/14/98
account-Sony Trinitron
Monitor $1,259.90 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
88 Freight 27 1 1 45.53 45.53 N 5668 4/14/98 $45.53 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
89 Takashi Kousaka 40798 Part of expense 1 1 1 2,200.00 2,200.00 Y 5668 4/14/98
account-Dell
Dimension xps 233
w/Access $2,200.00 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
90 Tax 29 1 1 187.04 187.04 Y 5668 4/14/98 $187.04 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
91 Takashi Kousaka 40798 Part of expense 1 1 1 2,313.00 2,313.00 Y 5668 4/14/98
account-Dell
Dimension xps 333
w/Accessories $2,313.00 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
92 Dell Dimension xps 1 2 1 4,002.00 4,002.00 Y 5668 4/14/98
233mhz Minitower
w/Accessories $4,002.00 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
93 Freight 27 1 1 165.00 165.00 Y 5668 4/14/98 $165.00 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
94 Tax 29 1 1 550.88 550.88 Y 5668 4/14/98 $550.88 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
95 Takashi Kousaka 40798 Part of expense 1 2 1 6,536.00 6,536.00 Y 5668 4/14/98
account-Dell
Dimension xps 333
w/Accessories $6,536.00 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
96 Freight 27 1 1 200.00 200.00 Y 5668 4/14/98 $200.00 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
Page 3 of 4
Property of Phoenix Leasing Incorporated
<PAGE> 31
PHOENIX LEASING INCORPORATED
FUNDING REQUEST
EXHIBIT A
-----------------------------------------------------------------------------------------------------------------------------------
97 Tax 29 1 1 572.62 572.62 Y 5668 4/14/98 $572.62 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
98 Takashi Kousaka 40798 Part of expense 1 1 1 629.95 629.95 N 5668 4/14/98
account-Sony Trinitron
Monitor $629.95 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
99 Freight 27 1 1 28.47 28.47 N 5668 4/14/98 $28.47 $0.00 P
-----------------------------------------------------------------------------------------------------------------------------------
100 Reach Technology ??? Intel Express 10/100 9 2 1 2,450.00 2,450.00 Y 1586 2/3/98
12 port HUB
$2,450.00 $0.00 T
-----------------------------------------------------------------------------------------------------------------------------------
101 CAT 5 Crss over Cable 8 2 1 20.00 20.00 Y 1586 2/3/98 $20.00 $0.00 T
-----------------------------------------------------------------------------------------------------------------------------------
102 Tax 29 1 1 209.95 209.95 Y 1586 2/3/98 $209.95 $0.00 N
-----------------------------------------------------------------------------------------------------------------------------------
103 Installation 27 1 1 250.00 250.00 Y 1586 2/3/98 $250.00 $0.00 T
-----------------------------------------------------------------------------------------------------------------------------------
104 $0.00 $0.00 ##
-----------------------------------------------------------------------------------------------------------------------------------
----------------------
TOTAL AMOUNT DUE TO LESSEE $96,379.86
----------------------
TOTAL AMOUNT DUE TO VENDOR $0.00
-------------
TOTAL DRAW $96,379.86
-------------
Lessee Signature /s/ LAYTON S. HAN Date: 6/12/98
------------------------- ---------
Page 4 of 4
Property of Phoenix Leasing Incorporated
<PAGE> 32
SALE LEASEBACK ADDENDUM
to Schedule No. 01
of MASTER EQUIPMENT LEASE
Dated May 1, 1998
Between INTELLIPOST CORPORATION,
a Delaware Corporation, and
INTELLIPOST CORPORATION,
a California corporation, jointly and
severally as Lessee
and PHOENIX LEASING INCORPORATED
This addendum to Master Equipment Lease is made and entered into as of June 22,
1998 between PHOENIX LEASING INCORPORATED ("Lessor") and INTELLIPOST
CORPORATION, a California corporation and INTELLIPOST CORPORATION, a Delaware
corporation, (jointly and severally, "Lessee").
Notwithstanding anything to the contrary contained in the Lease referenced
above, Lessor and Lessee agree as follows:
1. Lessee shall sell the Equipment to and lease the Equipment from Lessor and
Lessor shall purchase the Equipment from and lease the Equipment to Lessee
upon the terms and conditions of the Bill of Sale attached hereto as
Attachment 1.
2. Lessee represents and warrants that:
(a) Lessee has the right to sell the Equipment as set forth herein,
(b) the Equipment and Lessee's right, title and interest in such Equipment
is, as of the date of the Bill of Sale, free from all claims, liens,
security interests and encumbrances,
(c) Lessee will defend the sale against lawful claims and demands of all
persons, and
(d) the purchase price of the Equipment is equal to the fair market value
of such Equipment at the time of sale.
LESSOR: CO-LESSEE:
PHOENIX LEASING INCORPORATED INTELLIPOST CORPORATION, a Delaware
corporation
By: /s/ GREGORY D. KILIAN By: /s/ LAYTON S. HAN
--------------------------- ------------------------------
Name: Gregory D. Kilian Name: Layton S. Han
------------------------- -------------------------
Title: AVP Title: CFO
------------------------ ------------------------
Date: 6/22/98 Date: 6/22/98
------------------------ ------------------------
CO-LESSEE:
INTELLIPOST CORPORATION, a California
corporation
By: /s/ LAYTON S. HAN
------------------------------
Name: Layton S. Han
-------------------------
Title: CFO
------------------------
<PAGE> 33
Phoenix Leasing Incorporated
Funding Request
Exhibit A
Lessee: INTELLIPOST CORPORATION
--------------------------
565 COMMERCIAL STREET
Master Contract: 148 Schedule: 01
-------------------------- -------
--------------------------------------------------------------------------------------
L
Item Invoice Description Eq Serial o
No Vendor Name No. of item Cd Qty Number c
--------------------------------------------------------------------------------------
1 Dell 144710894 Dell Dimension 200mhz 1 1 1
minitower w/accessor
--------------------------------------------------------------------------------------
2 Tax 29 1 1
--------------------------------------------------------------------------------------
3 Dell 142523395 Dell Dimension xps 1 1 1
300mhz Minitower
w/access
--------------------------------------------------------------------------------------
4 Tax 29 1 1
--------------------------------------------------------------------------------------
5 Dell 142523620 Dell Dimension xps 1 2 1
300mhz Minitower
w/access
--------------------------------------------------------------------------------------
6 Tax 29 1 1
--------------------------------------------------------------------------------------
7 Dell 146694310 Del Dimension 233mhz 1 2 1
minitower w/access
--------------------------------------------------------------------------------------
8 Tax 29 1 1
--------------------------------------------------------------------------------------
9 Dell 143902179 Dell Dimension xps 1 1 1
300mhz Minitower
w/access
--------------------------------------------------------------------------------------
10 Tax 29 1 1
--------------------------------------------------------------------------------------
11 Dell 140295213 4gb SCSI HD 1 2 1
--------------------------------------------------------------------------------------
12 2940 PCI SCSI 1 1 1
--------------------------------------------------------------------------------------
13 Tax 29 1 1
--------------------------------------------------------------------------------------
14 Freight 27 1 1
--------------------------------------------------------------------------------------
15 Dell 142523521 Dim XPS m200s, 1 1 1
512k, mmx, minitower
--------------------------------------------------------------------------------------
16 64MB SDRAM 1 1 1
--------------------------------------------------------------------------------------
17 Altec Speakers 1 1 1
--------------------------------------------------------------------------------------
18 14/32X EDE Cdrom 1 1 1
--------------------------------------------------------------------------------------
19 STB Nitro 4MB edo 1 1 1
--------------------------------------------------------------------------------------
20 Dell 1000LS 17" 1 1 1
--------------------------------------------------------------------------------------
21 3C905-tx, enet 10/100 9 1 1
--------------------------------------------------------------------------------------
22 Selectcare, Dim, NBD 1 1 1
--------------------------------------------------------------------------------------
23 NBD, parts, yrs 1 1 1
--------------------------------------------------------------------------------------
24 MS Office 97 24 1 1
--------------------------------------------------------------------------------------
25 Tax 29 1 1
--------------------------------------------------------------------------------------
26 Freight 27 1 1
--------------------------------------------------------------------------------------
27 Dell 142535947 Dimension m200a/m/mx 1 1 1
512k, MB Video
--------------------------------------------------------------------------------------
28 Vibra 16c Soundcard 1 1 1
--------------------------------------------------------------------------------------
29 Altec Speakers 1 1 1
--------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
Total Tax Pd
Invoic'd $ $ Pd By Vndr? Chk Transact Net $ Due Net $ Due
Net of Sls Tx Lessee (Y/N) No. Date Lessee Vendor
----------------------------------------------------------------------------------------------
1 1,244.00 1,244.00 Y 5498 3/11/98 $1,244.00 $0.00 I
----------------------------------------------------------------------------------------------
2 105.76 105.76 Y 5498 3/11/98 $105.76 $0.00 N
----------------------------------------------------------------------------------------------
3 2,776,000 2,766.00 Y 5474 3/3/98 $2,776.00 $0.00 I
----------------------------------------------------------------------------------------------
4 235.96 235.96 Y 5474 3/3/98 $235.96 $0.00 N
----------------------------------------------------------------------------------------------
5 5,110.00 5,110.00 Y 5467 3/3/98 $5,110.00 $0.00 I
----------------------------------------------------------------------------------------------
6 434.44 434.44 Y 5467 3/3/98 $434.44 $0.00 N
----------------------------------------------------------------------------------------------
7 2,896.00 2,896.00 Y 5549 3/24/98 $2,896.00 $0.00 P
----------------------------------------------------------------------------------------------
8 246.19 246.19 Y 5549 3/24/98 $246.19 $0.00 P
----------------------------------------------------------------------------------------------
9 2,869.00 2,869.00 Y 5498 3/11/98 $2,869.00 $0.00 I
----------------------------------------------------------------------------------------------
10 236.72 236.72 Y 5498 3/11/98 $236.72 $0.00 N
----------------------------------------------------------------------------------------------
11 1,598.00 1,598.00 Y 5526 3/17/98 $1,598.00 $0.00 P
----------------------------------------------------------------------------------------------
12 229.00 229.00 Y 5526 3/17/98 $229.00 $0.00 P
----------------------------------------------------------------------------------------------
13 156.50 156.50 Y 5526 3/17/98 $156.50 $0.00 P
----------------------------------------------------------------------------------------------
14 14.00 14.00 Y 5526 3/17/98 $14.00 $0.00 P
----------------------------------------------------------------------------------------------
15 850.00 850.00 Y 5526 3/17/98 $850.00 $0.00 P
----------------------------------------------------------------------------------------------
16 169.00 169.00 Y 5539 3/17/98 $169.00 $0.00 P
----------------------------------------------------------------------------------------------
17 49.00 49.00 Y 5539 3/17/98 $49.00 $0.00 P
----------------------------------------------------------------------------------------------
18 100.00 100.00 Y 5539 3/17/98 $100.00 $0.00 P
----------------------------------------------------------------------------------------------
19 40.00 40.00 Y 5539 3/17/98 $40.00 $0.00 P
----------------------------------------------------------------------------------------------
20 483.00 483.00 Y 5539 3/17/98 $483.00 $0.00 P
----------------------------------------------------------------------------------------------
21 79.00 79.00 Y 5539 3/17/98 $79.00 $0.00 P
----------------------------------------------------------------------------------------------
22 35.00 35.00 Y 5539 3/17/98 $35.00 $0.00 P
----------------------------------------------------------------------------------------------
23 99.00 99.00 Y 5539 3/17/98 $99.00 $0.00 P
----------------------------------------------------------------------------------------------
24 100.00 100.00 Y 5539 3/17/98 $100.00 $0.00 P
----------------------------------------------------------------------------------------------
25 175.04 175.04 Y 5539 3/17/98 $175.04 $0.00 P
----------------------------------------------------------------------------------------------
26 55.00 55.00 Y 5539 3/17/98 $55.00 $0.00 P
----------------------------------------------------------------------------------------------
27 890.00 890.00 Y 5540 3/17/98 $890.00 $0.00 P
----------------------------------------------------------------------------------------------
28 54.00 54.00 Y 5540 3/17/98 $54.00 $0.00 P
----------------------------------------------------------------------------------------------
29 35.00 35.00 Y 5540 3/17/98 $35.00 $0.00 P
----------------------------------------------------------------------------------------------
Page 1 of 4
Property of Phoenix Leasing Incorporated
<PAGE> 34
Phoenix Leasing Incorporated
Funding Request
Exhibit A
--------------------------------------------------------------------------------------
30 14/32X EIDE Cdrom 1 1 1
--------------------------------------------------------------------------------------
31 Trinitron 800hs 15" 1 1 1
--------------------------------------------------------------------------------------
32 3C905-tx, enet 10/100 9 1 1
--------------------------------------------------------------------------------------
33 Selectcare, Dim, NBD 1 1 1
--------------------------------------------------------------------------------------
34 NBD, parts, yrs 1 1 1
--------------------------------------------------------------------------------------
35 MS Office 97 24 1 1
--------------------------------------------------------------------------------------
36 Tax 29 1 1
--------------------------------------------------------------------------------------
37 Freight 27 1 1
--------------------------------------------------------------------------------------
38 Dell 149577868 Dell Dimension xps 1 1 1
233mhz Minitower
w/accessories
--------------------------------------------------------------------------------------
39 Tax 29 1 1
--------------------------------------------------------------------------------------
40 Reach Technology 2889 Intel Express 10/100 9 2 1
12port Hub
--------------------------------------------------------------------------------------
41 CAT 5 Crss over Cable 8 2 1
--------------------------------------------------------------------------------------
42 Intel Express 10/100 27 1 1
12port Hub installation
--------------------------------------------------------------------------------------
43 Tax 29 1 1
--------------------------------------------------------------------------------------
44 Reach Technology 2994 Int 1259-Cable Testing 26 1 1
--------------------------------------------------------------------------------------
45 CAT 5Utp Plennm Cbl 8 9 1
--------------------------------------------------------------------------------------
46 CAT 5 Wall Jacks/plate 8 9 1
--------------------------------------------------------------------------------------
47 Wall Jacks 8 9 1
--------------------------------------------------------------------------------------
48 9CAT 5 utp Cable Drop 26 5 1
--------------------------------------------------------------------------------------
49 9CAT 5 Testing & 26 5 1
Termination
--------------------------------------------------------------------------------------
50 Tax 29 1 1
--------------------------------------------------------------------------------------
51 Reach Technology 2991 Phone & Voice Cable 8 21 1
--------------------------------------------------------------------------------------
52 Punch Down Block 8 1 1
--------------------------------------------------------------------------------------
53 Punch down block 8 1 1
board
--------------------------------------------------------------------------------------
54 UTP Voice Cable Drop 27 10.5 1
--------------------------------------------------------------------------------------
55 CAT 3 Termination 26 10.5 1
--------------------------------------------------------------------------------------
56 Voice Cable testing 26 2.1 1
--------------------------------------------------------------------------------------
57 Tax 29 1 1
--------------------------------------------------------------------------------------
58 Reach Technology 3079 CAT 5 Utp Plennm Cbl 8 7 1
--------------------------------------------------------------------------------------
59 12 Ports Patch Panel 8 2 1
--------------------------------------------------------------------------------------
60 Cat 5 Wall Plate 8 5 1
--------------------------------------------------------------------------------------
61 Surface Mount Boxes 8 2 1
--------------------------------------------------------------------------------------
62 Cat 5 Wall Jacks 8 7 1
--------------------------------------------------------------------------------------
63 Cable Installation 27 3.5 1
--------------------------------------------------------------------------------------
64 Termination & Testing 26 3 1
--------------------------------------------------------------------------------------
65 Tax 29 1 1
--------------------------------------------------------------------------------------
66 SSPS, Inc. ??? 8.0 base Stat. 24 1 1
Software
--------------------------------------------------------------------------------------
67 8.0 Profes. Stat. 24 1 1
Softw.
--------------------------------------------------------------------------------------
68 8.0 Answer Stat. 24 1 1
Softw.
--------------------------------------------------------------------------------------
69 WilTel V517302 Contract Payment 28 1 1
--------------------------------------------------------------------------------------
30 100.00 100.00 Y 5540 3/17/98 $100.00 $0.00 P
----------------------------------------------------------------------------------------------
31 384.00 384.00 Y 5540 3/17/98 $384.00 $0.00 P
----------------------------------------------------------------------------------------------
32 79.00 79.00 Y 5540 3/17/98 $79.00 $0.00 P
----------------------------------------------------------------------------------------------
33 35.00 35.00 Y 5540 3/17/98 $35.00 $0.00 P
----------------------------------------------------------------------------------------------
34 99.00 99.00 Y 5540 3/17/98 $99.00 $0.00 P
----------------------------------------------------------------------------------------------
35 100.00 100.00 Y 5540 3/17/98 $100.00 $0.00 P
----------------------------------------------------------------------------------------------
36 155.68 155.68 Y 5540 3/17/98 $155.68 $0.00 P
----------------------------------------------------------------------------------------------
37 55.00 55.00 Y 5540 3/17/98 $55.00 $0.00 P
----------------------------------------------------------------------------------------------
38 2,056.00 2,056.00 Y 5641 4/14/98 $2,056.00 $0.00 P
----------------------------------------------------------------------------------------------
39 174.80 174.80 Y 5641 4/14/98 $174.80 $0.00 P
----------------------------------------------------------------------------------------------
40 2,450.00 2,450.00 Y 5487 3/3/98 $2,450.00 $0.00 I
----------------------------------------------------------------------------------------------
41 20.00 20.00 Y 5487 3/3/98 $20.00 $0.00 I
----------------------------------------------------------------------------------------------
42 250.00 250.00 Y 5487 3/3/98 $250.00 $0.00 I
----------------------------------------------------------------------------------------------
43 209.95 209.95 Y 5487 3/3/98 $209.95 $0.00 N
----------------------------------------------------------------------------------------------
44 75.00 75.00 Y 5588 3/31/98 $75.00 $0.00 P
----------------------------------------------------------------------------------------------
45 360.00 360.00 Y 5588 3/31/98 $360.00 $0.00 P
----------------------------------------------------------------------------------------------
46 45.00 45.00 Y 5588 3/31/98 $45.00 $0.00 P
----------------------------------------------------------------------------------------------
47 72.00 72.00 Y 5588 3/31/98 $72.00 $0.00 P
----------------------------------------------------------------------------------------------
48 375.00 375.00 Y 5588 3/31/98 $375.00 $0.00 P
----------------------------------------------------------------------------------------------
49 375.00 375.00 Y 5588 3/31/98 $375.00 $0.00 P
----------------------------------------------------------------------------------------------
50 40.55 40.55 Y 5588 3/31/98 $40.55 $0.00 P
----------------------------------------------------------------------------------------------
51 420.00 420.00 Y 5588 3/31/98 $420.00 $0.00 P
----------------------------------------------------------------------------------------------
52 20.00 20.00 Y 5588 3/31/98 $20.00 $0.00 P
----------------------------------------------------------------------------------------------
53 50.00 50.00 Y 5588 3/31/98 $50.00 $0.00 P
----------------------------------------------------------------------------------------------
54 787.50 787.50 Y 5588 3/31/98 $787.50 $0.00 P
----------------------------------------------------------------------------------------------
55 787.50 787.50 Y 5588 3/31/98 $787.50 $0.00 P
----------------------------------------------------------------------------------------------
56 157.50 157.50 Y 5588 3/31/98 $157.50 $0.00 P
----------------------------------------------------------------------------------------------
57 41.65 41.65 Y 5588 3/31/98 $41.65 $0.00 P
----------------------------------------------------------------------------------------------
58 280.00 280.00 Y 5620 4/7/98 $280.00 $0.00 P
----------------------------------------------------------------------------------------------
59 300.00 300.00 Y 5620 4/7/98 $300.00 $0.00 P
----------------------------------------------------------------------------------------------
60 25.00 25.00 Y 5620 4/7/98 $25.00 $0.00 P
----------------------------------------------------------------------------------------------
61 10.00 10.00 Y 5620 4/7/98 $10.00 $0.00 P
----------------------------------------------------------------------------------------------
62 56.00 56.00 Y 5620 4/7/98 $56.00 $0.00 P
----------------------------------------------------------------------------------------------
63 262.50 262.50 Y 5620 4/7/98 $262.50 $0.00 P
----------------------------------------------------------------------------------------------
64 225.00 225.00 Y 5620 4/7/98 $225.00 $0.00 P
----------------------------------------------------------------------------------------------
65 57.04 57.04 Y 5620 4/7/98 $57.04 $0.00 I
----------------------------------------------------------------------------------------------
66 954.00 954.00 N 1612 2/26/98 $954.00 $0.00 I
----------------------------------------------------------------------------------------------
67 495.00 495.00 N 1612 2/26/98 $495.00 $0.00 I
----------------------------------------------------------------------------------------------
68 1,194.00 1,194.00 N 1612 2/26/98 $1,194.00 $0.00 I
----------------------------------------------------------------------------------------------
69 5,240.23 5,240.23 N 1588 2/3/98 $5,240.23 $0.00 N
----------------------------------------------------------------------------------------------
Page 2 of 4
<PAGE> 35
OFFICER'S CERTIFICATE
The undersigned, Layton Han, hereby certifies that:
i) I am the Treasurer/Chief Financial Officer of INTELLIPOST CORPORATION, a
California corporation;
ii) as such officer, I am familiar with the terms and conditions of that
certain Master Equipment Lease (the "Lease") dated as of May 1, 1998
between INTELLIPOST CORPORATION, a California corporation and INTELLIPOST
CORPORATION, a Delaware corporation, (jointly and severally, "Lessee")
and PHOENIX LEASING INCORPORATED ("Lessor");
iii) this certificate is delivered in connection with the leasing of certain
equipment under a Schedule with Lessor, the equipment is described in the
Schedule and the equipment is free and clear from any and all liens,
charges, security interests or other encumbrances which may affect
Lessor's right, title or interest in and to the equipment;
iv) there has been no material adverse change in the financial condition of
Lessee from the date of its most recent financial statements, true copies
of which have been delivered to Lessor; and
v) no event which, with the giving of notice or passage of time, or both,
could become an Event of Default under the Lease has occurred and is
continuing.
vi) Lessee is performing according to Lessee's business plan described in
Section 3 of the Lease, a true copy of which business plan has been
delivered to Lessor;
vii) the representations and warranties in Section 5 of the Lease are true and
correct as of the date hereof.
IN WITNESS WHEREOF, I hereby execute this certificate on this 12 day of June,
1998.
/s/ LAYTON S. HAN
-------------------------------
<PAGE> 36
(For use when agreement is executed in California)
ACKNOWLEDGEMENT OF A NOTARY PUBLIC:
ALL-PURPOSE CERTIFICATE
(For use when agreement is executed in California)
State of California
County of San Francisco
---------------------
On June 12, 1998 before me /s/ SUSAN C. LEE, personally appeared /s/ LOUIS N.
HAAS, personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal
Signature /s/ SUSAN C. LEE (Seal) [SEAL]
ACKNOWLEDGEMENT OF A NOTARY PUBLIC:
REGISTERED LIMITED LIABILITY PARTNERSHIP ACKNOWLEDGEMENT
(For use when agreement is executed in California)
STATE OF
-----------------------)
)ss:
COUNTY OF )
-----------------------
On this day of , 19 , before me, a Notary Public in
and for said County, personally appeared , personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person who
executed the within instrument on behalf of said registered limited liability
partnership and acknowledged to me that he (or she) executed the same in
his/her authorized capacity as the free act and deed of said registered limited
liability partnership for the purposes therein stated.
--------------------------------
My commission expires: NOTARY PUBLIC
[Notary Seal]
<PAGE> 37
Recording Requested By
Asset Management Group
When Recorded Mail To:
CT CORPORATION SYSTEM
c/o PHOENIX LEASING INCORPORATED
2401 Kerner Boulevard
San Rafael, CA 94901
Space Above This Line for Recorder
--------------------------------------------------------------------------------
REAL PROPERTY WAIVER
To: PHOENIX LEASING INCORPORATED
2401 Kerner Boulevard
San Rafael, CA 94901
Attention: Asset Management
Re: INTELLIPOST CORPORATION, a California corporation and INTELLIPOST
CORPORATION, a Delaware corporation, jointly and severally, Lessee
As holder ("Holder") of an interest in the real property ("Real Property")
described below, I (we) (1) acknowledge and consent to your agreement to lease
and install on the Real Property the equipment (the "Equipment") leased
pursuant to Master Equipment Lease Agreement dated as of May 1, 1998, and
Schedule(s) thereto between you and Lessee, (2) disclaim any ownership or other
interest in subject Equipment and other Equipment that may be added from time
to time, and (3) recognize your right to enter, and will permit you and your
successors and assigns to enter upon the Real Property, but only for the
purposes of inspecting or removing your Equipment.
This Real Property Waiver shall be binding upon the heirs, successors and
assigns of Holder.
I (we), as Holder, am (are) the (Please Check Appropriate Line Below):
___Beneficiary (Deed of Trust) ___Mortgagee ___Landlord/Real Property Lessor
___Sublandlord/Real Property Sublessor ___Owner
with respect to the Real Property.
Signed,
LOUIS N. HAAS
-----------------------------
Full Legal Name of Holder
/s/ LOUIS N. HAAS Owner-Atty in Fact 6/12/98
----------------------- -------------------------------- --------
Signature Title Date
Real Property Located at: 565 Commercial Street, 2nd Floor
San Francisco, CA 94111
County of San Francisco
Legal Description of Real Property (which can be taken from your title policy
or deed of trust) is attached.