HomeMy WebLinkAboutResolution - 2005-R0224 - Tax Abatement Agreement With Module Truck Systems, Inc. & BMOVE, Ltd. - 05_26_2005Resolution No. 2005-RO224
May 26, 2005
Item No. 34
RESOLUTION
WHEREAS, the City Council has determined to give notice of its intent to enter into a
Tax Abatement Agreement with Module Truck Systems, Inc. and BMOVE, Ltd.; and
WHEREAS, V.T.C.A. Tax Code Section 312.2041 requires notice of intent of the City
Council to be given to the presiding officer of the governing body of each taxing unit in which
the property to be subject to the Tax Abatement Agreement is located; NOW
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Secretary give notice as set forth in Exhibit "A" of the intention of the
City Council to enter into a Tax Abatement Agreement with Module Truck Systems, Inc. and
BMOVE, Ltd., said notice to be given to the presiding officers of each governing body of each
taxing unit having jurisdiction in assessing taxes on 2008 and 2010 East 50`h Street, the East
500 feet of Tract C Breedlove Addition, in the City of Lubbock, Lubbock County, Texas,
which is further described in Exhibit "A-l" attached hereto and incorporated herein as if fully
set forth.
Passed by the City Council this 26th day of May 2005.
ATTEST:
Rebecca Garza, City Secretary
APPR VED AS CONTENT:
Rob Al i
Directo •-df Business Development
APPROVED AS TO FORM:
Linda L. Chamales, Senior Attorney
Office Practice Section
EXHIBIT "A"
NOTICE OF INTENT OF THE CITY COUNCIL
OF THE CITY OF LUBBOCK TO ENTER INTO AN
AGREEMENT TO ABATE TAXES ON REAL PROPERTY
IMPROVEMENTS AND TANGIBLE PROPERTY LOCATED AT 2009 AND
2010 E. 501H STREET WHICH IS THE EAST FIVE HUNDRED FEET OF
TRACT C, BREEDLOVE ADDITION TO THE CITY OF LUBBOCK,
LUBBOCK COUNTY, TEXAS AND FURTHER DESCRIBED IN THE
ATTACHED EXHIBIT 44A-1"
Notice is hereby given that the City Council of the City of Lubbock intends to
enter into an Agreement with Module Truck Systems, Inc. and BMOVE, Ltd. to abate
taxes on improvements to real property and tangible personal property located within
the Lubbock 2000 South Enterprise Zone created by Ordinance No. 2000-00032 and
covering all of the subject property.
Notice is further given that the City Council of the City of Lubbock will
consider authorizing the Mayor of the City to execute a contract between the City and
Module Truck Systems, Inc. and BMOVE, Ltd. for tax abatement, a draft copy of said
Agreement is attached to this notice as Exhibit "A-2" and made a part hereof for all
purposes.
Notice is further given that the City Council will consider this matter at its
meeting held in the City Council Chamber, City Hall, 1625 13`h Street, City of
Lubbock, on the 9th day of June, 2005, at approximately 9:30 o'clock a.m.
EXHIBIT "A-1"
50th STi4��T_
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Description
East 500 feet of Tract C Breedlove Addition to the City of Lubbock, Texas
EXHIBIT "A-2"
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
DRAFT
This Agreement made this day of , 2005, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City"), BMOVE, Ltd., a Texas limited partnership (hereinafter called
"BMOVE") and Module Truck Systems, Inc. (hereinafter called "MTS");
`1J�1�`Ix.Y.��111A
WHEREAS, BMOVE, a partnership owned in part by MTS, is the owner of real
property located at 1802 E. 50th Street which is further described as Tract A, B, & C
Breedlove Addition to the City of Lubbock, Texas; and
WHEREAS, on December 1, 2004, MTS entered into a one hundred and eighty
month lease with BMOVE for a portion of the property and one of the facilities at 1802
E. 50th Street, Lubbock, Texas, a copy of which is attached hereto as Exhibit "A" and
incorporated in this agreement as if fully set forth herein. The portion of the property and
facility leased by MTS is described as 2008 and 2010 E. 50th Street, the east five hundred
feet of Tract C, Breedlove Addition to the City of Lubbock, Texas which is further
described in Exhibit `B' , and made a part of this agreement for all purposes; and
WHEREAS, City did receive from MTS on the loth day of December an
application for tax abatement for improvements to real property and tangible personal
property at 2008 and 2010 E. 50th Street , Lubbock, Texas, which is further described in
Exhibit `B' ; and
WHEREAS, upon review of the above application it was determined that the
facility and real property is located in the Lubbock 2000 South Enterprise Zone
designated by the City in Ordinance No. 2000-00032 covering the above described
property; and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement For Selected
Taxing Units Contained Within Lubbock County was heretofore adopted by Resolution
No. 2003-RO370 of the City Council of the City of Lubbock, and amended by Resolution
No. 2004-R0593. A copy of the amended Guidelines and Criteria Governing Tax
Abatement for Selected Taxing Units Within Lubbock County is attached as Exhibit "C"
and incorporated herein as if fully set forth; and
AGREEMENT - MODULE TRUCK SYSTEMS, INC. PAGE 1
WHEREAS, the City did comply with all the requirements set forth in V.T.C.A.,
Tax Code, Section 312.201; and
WHEREAS, the City did comply with all the criteria and guidelines as set forth in
the Guidelines and Criteria Governing Tax Abatement for Selected Taxing Units
Contained Within Lubbock County, said guidelines having been adopted by Resolution
No. 2003-RO370 of the City on September 18, 2003, and amended by Resolution No.
2004-RO593 on December 16, 2004; and
WHEREAS, the City did pass Ordinance No. 2000-00032 creating the Lubbock
2000 South Enterprise Zone for commercial and industrial tax abatement, said zone
including the area which is described in the attached Exhibit `B"; and
WHEREAS, V.A.T.C., Tax Code, Sec. 312.2011 provides that designation as an
enterprise zone constitutes designation as a reinvestment zone without further action; and
WHEREAS, the application received by City from MTS is an application for the
modernization and expansion of an existing facility owned by BMOVE and leased to
MTS; and
WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a
purpose is to be included in the guidelines for tax abatement and to be eligible for such
treatment; and
WHEREAS, Section IV of the Guidelines and Criteria governing Tax Abatement
for Selected Taxing Units Contained Within Lubbock County adopted by the City
Council by Resolution No. 2003-R0370, and amended by Resolution No. 2004-R0593,
does recognize modernization and expansion of an existing facility as being eligible for
tax abatement status; and
WHEREAS, the City Council finds that although the project is not included as a
target industry in the guidelines, it has the potential of generating additional significant
economic development opportunities to Lubbock; and
WHEREAS, the City Council does hereby find that all of the Guidelines and
Criteria Governing Tax Abatement, as adopted by Resolution No. 2003-R0370, and
amended by Resolution No. 2004-R0593, have been met by MTS; and
WHEREAS, the location of the facility and surrounding real property, which are
to be the subject matter of this Agreement, are attached hereto as Exhibit "B" and made a
part of this Agreement for all purposes; and
NOW THEREFORE, for and in consideration of the mutual terms, covenants and
conditions herein contained the City, MTS, and BMOVE do hereby agree as follows:
AGREEMENT -MODULE TRUCK SYSTEMS, INC. PAGE 2
SECTION 1. Term. This Agreement shall remain in force and effect for a period
of five (5) years frorlh January 1 of the tax year after the required improvements are
substantially completed and shall expire and be of no further force and effect after said
date.
SECTION 2. Base Year. The base year applicable to real property, which is the
subject of this Agreement, shall be 2005, and the assessed value of the real property shall
be the assessed value applicable to such. property for said year.
SECTION 3. Base Year Taxes. The taxes upon the real property shall be paid in
accordance with the assessed value of such property for the base year. Base year taxes
upon the real property are thus not abated.
SECTION 4. Abatement of Increase in Base Year Tax. In accordance with
V.A.T.C., Tax Code, Section 312.204 real property taxes applicable to the real property
subject to this Agreement shall be abated only to the extent said value for any given year
within the term of this Agreement exceeds the base year taxes hereinabove set forth.
SECTION 5. Property Ineligible for Tax Abatement. The property described and
set forth in Section IV(6) of the Guidelines and Criteria Governing Tax Abatement for
selected taxing units contained within Lubbock County and heretofore adopted by the
City Council by Resolution No. 2003-R0370, amended by Resolution No. 2004-RO593 is
incorporated by reference herein as if fully set out in this Agreement and fully describes
the property ineligible for tax abatement.
SECTION 6. Exemption from Tax. The City covenants and agrees to exempt
from taxation, in accordance with Section 4 above, the following properties:
(a) All proposed new improvements to be placed upon the property which is
described in Exhibit `B".
(b) All eligible tangible personal property, owned by MTS, placed in or upon
the property set forth in Exhibit "B", which does not include any
equipment and personal property owned by MTS and already located in
the existing facility.
(c) It is further understood that all items affixed to the new improvements
placed upon the real property identified in Exhibit "B", including
machinery and equipment shall be considered part of the real property
improvement and taxes thereon shall be abated in accordance with the
provisions of subparagraph (a) above set forth.
SECTION 7. Economic Qualifications. MTS agrees to expend funds necessary
to qualify for tax abatement by modernizing and expanding an existing facility, as set
AGREEMENT - MODULE TRUCK SYSTEMS, INC. PAGE 3
forth in Section IV(3)(b) of the amended Guidelines and Criteria Governing Tax
Abatement for selected taxing units contained within Lubbock County (Exhibit "C") on
the property described in Exhibit "B". A description of the kind, number and location of
all proposed improvements is attached in MTS' application, Exhibit "D" and
incorporated herein as if fully set forth.
SECTION 8. Value of Improvements. In accordance with V.A.T.C., Tax Code,
Section 312.204(a), which requires the Owner or the Owner of the Leasehold Interest of
the property to make specific improvements or repairs to the property in order to be
eligible for tax abatement, MTS will expend :five hundred thousand dollars ($500,000)
dollars and WOVE will expend two hundred and forty-three thousand dollars
($243,000) for the modernization and expansion of the existing facility and MTS will
expend fifty -thousand dollars ($50,000) on new equipment to be located within the
enterprise zone created by Ordinance No. 2000-00032.
SECTION 9. Job Creation. MTS agrees to create and retain ten (10) new
permanent full-time jobs within the Company plant located at 2008 and 2010 E. 50th
Street, which is further described in Exhibit "B", within two years of the date of this
agreement.
"SECTION 10. Electricity Provider. MTS agrees to utilize Lubbock Power &
Light (LP&L) for electrical services beginning September 1, 2005, and for the remainder
of the term of the tax abatement. If company chooses to utilize a different Power
Company, this contract would be terminated.
SECTION 11. City Access to Property. MTS and BMOVE covenant and agree
that City shall have access to the property, which are the subject matter of this
Agreement, upon reasonable notice and during normal business hours, and that municipal
employees shall be able to inspect the property to insure compliance with the terms and
conditions of MTS' application for tax abatement, attached as Exhibit "D", and this
Agreement.
SECTION 12. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate taxes on eligible property according to the following schedule.
Year 1:
100%
Year 2:
80%
Year 3:
60%
Year 4:
40%
Year 5:
20%
SECTION 13. Commencement Date. This Agreement shall commence January 1
of the tax year after the required improvements are substantially completed and shall
expire five (5) years after such date.
AGREEMENT -MODULE TRUCK SYSTEMS, INC. PAGE 4
SECTION 14. Type of Improvements. MTS proposes to renovate and expand an
existing structure as described in Exhibit "D MTS further states that the proposed
improvements to the property above mentioned shall commence on the 1l s` day of January,
2005, and shall be completed within approximately three (3) months from said date.
MTS may request an extension of the above date from City in the event circumstances
beyond the control of MTS necessitates additional time for completion of such
improvements and such consent shall not unreasonably be withheld. MTS shall provide a
copy of the certificate of occupancy or other proof of completion within ten days of
completion of improvements.
SECTION 15. Drawings of Improvements. MTS shall furnish City with one set
of as built plans and drawings of the improvements to be made pursuant to the terms of
this Agreement.
SECTION 16. Limitation on Use. MTS and BMOVE agrees to limit the use of
the property set forth in Exhibit "B" to commercial and/or industrial uses as those terms
are defined in the zoning ordinances of the City of Lubbock and to limit the uses of the
property to uses consistent with the general purpose of encouraging development of the
enterprise zone during the term of this agreement.
SECTION 17. Recapture. MTS and BMOVE agrees to be bound by and comply
with all the terms and provisions for recapture of abated taxes in the event of default by
MTS and BMOVE pursuant to law and as set forth in Guidelines and Criteria for Tax
Abatement adopted by Resolution No. 2003-RO370 of the City Council of the City of
Lubbock and amended by Resolution No. 2004-R0593.
SECTION 18. Certification. MTS and BMOVE agrees to certify annually in
writing to the governing body of each taxing unit that the owner and owner of the
leasehold interest is in compliance with the terms of the Agreement.
SECTION 19. Compliance. The City may cancel or modify this Agreement if
MTS and BMOVE fail to comply with the Agreement.
SECTION 20. Notices. Notices required to be given by this Agreement shall be
mailed, certified mail return receipt requested, to the following addresses:
CITY OF LUBBOCK
City Manager
P.O. Box 2000
Lubbock, Texas 79457
MODULE TRUCK SYSTEMS, INC.
Ted Allan Saffell
PO Box 1299
Wolfforth, TX 79382-1299
BMOVE, Ltd.
Douglas B. Allen
1802 E. 501h Street, Suite 106
Lubbock, TX 79404
AGREEMENT - MODULE TRUCK SYSTEMS, INC. PAGE 5
SECTION 21. Effective Date. Notwithstanding anything contained herein to the
contrary, this Agreement shall not be effective until such time as it has been finally
passed and approved.
EXECUTED this day of , 2005.
MODULE TRUCK SYSTEMS, INC. CITY OF LUBBOCK
A Municipal Corporation
RUSSELL LINDSEY MARC MCDOUGAL, MAYOR
PRESIDENT AND GM
BMOVE, LTD ATTEST:
DOUGLAS B. ALLEN Rebecca Garza
MANAGING DIRECTOR City Secretary
APPROVED AS TO CONTENT:
Rob Allison
Director of Business Development
APPROVED AS TO FORM:
Linda L. Chamales,
Senior Attorney
Office Practice Section
Tax Abatement Agmt-MTS
May 16, 2005
AGREEMENT -MODULE TRUCK SYSTEMS, INC. PAGE 6
EXHIBIT "A"
LILFEASE AGRIEEMENT
(Multi-Tetumt Property)
BETWEEN
BEmovE, LTD.
(LANDLORD)
MoDuLE TRucK SYSTEMS, INC.
cTENAT%M
RELATING TO
1802 East 50th. Street (portion)
Lubbock, Texas
(LEASED PREMISES)
L;1WRKm.w 6L-L-08aee.o [. —0
FUNDAMENTAL LEASE PROVISIONS ........................................... '............. I
'
aaozmLox---,--_.--'...,___,____._...____..__...___....
FundanwrtalzAue Provisions ................... I
cuzDefinitions ................................................................... ,
ARTICLE11 .................................................. ................................. z
2.01- Demise ,ofLeased Premises ....................................................... z
' , ' .' z
~—^''—'—'—^'~''—''—' '—`'` —''''^— '' '
u�o. p�m��7�m..—.—..--.—.,..—_.....--....—.....^`—_.,..
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ARTICLEW ......__.._,_._..__.._._^.~_...',.—_.'..—....--' a
�m�* Basic Rent. . . . — — — . . . . � . . . . — _ — — , — — . . . ' . . . . — _ . . — — — ' z
*.02. ^dam*klTenant Expense ....................................................... z
«/m. AddauoakJanm... --...'................................................. '.' z
wm« ...................................................... z
*zm Place vfRent Payment ........ ........................................... ,-- 3
AmrxcLEv — . . — — . . . — — . — . .. . ' .- — . . . — — — . . . . — . . — — . . . . . . . ' . . ' . — . — , a
xO`. Use ....................... ''''.—''.'"'—'—''''`^^^'.''----^'~,`' ^
s/m. Temesoespoosioaty Regarding Ruovdnus Substances ....... 3
amzncLRvz ._.—...—...--'...—~.—.'.--_.---.---.-.--''—'—''' *
ut7*xmand Aswesznents......................................................... *
oxm. ovsurance -.............'.----''~''.--''-'—''—'--'—''-'' ^
uRT*zLavo............................ ................................................... .x
roc.................................... .............................. x
7.02. Utility Services ........................... ........ 5
7.03. ' . — ' . '' . '. '' '' ' ' . ' . ' ' — ' — ' ' '— ' »
7404. -- . . . . . — — . . .' . . . . . , . . . . . . . . . — . — . — . — — »
r/m' .... «
7J0& Condition of Propert3r. Disclaimer vcWxonoues ...................................... o
zorDestruction o*o"mutx*.......................................................... o
ARTICLE V111,. ., ~ .. . ` ..`.--....'..—,..—`—.,....--,..—.—.... «
&m. .—.—.....—...............'—.................._— 6
8.02. . . — . . . . . . — . — — . . — . . . . . . .. . . . . . . . . . . . . . . . . — .— . e
&ms ........................................................... r
8.04. Tenaaft Personal Property-, Contractual Security bderest .............................. 7
ARTICLELX ^—.~..............—.......................................................
0.01. ^''''—~''—'—'''''—'''—'''—`' «
�.01 .......................................' «
wzm.........—.....---......—.—... o
u«* ' `—'''---'''''''''''''--'---''' »
9.,05Subordination vfL=me:Estoppel Certificates ........................................ y
9.06. ...................................... y
nuz Holifing Over by Tenant ........................................................ w
om. Notices and Addresses ..........................................................y
9.09. pxrdpsn*una .._...—..........--.......—.......—..'.~...—..--.. 9
*10. ...—............................--.----. *
9.11. LegatConstrwion ............................... __`..._......_..___. V
e.11 Prior Agreements Superseded .................................................... *
oo. .'............—...—.._._._........._.__.___ y
9.14. Waiver wrn*fa"n —.--.....—............................................. »
9.15............................................... ................. y
9.16. .............................................................. y
&rr 'rime nmthe Essence ............................................................. p
e18. Exhibits .......—.....—....---.....--......'.'.'--.—..--... 9
Exhibils"A"-"D* As Lettered
MCUTI.ON DATE:
LANDLORD:
Name:
Address:
TENANT:
Name:
Address:
PARTL
November, .2004
BEMOVE, LTD., a Texas limited partnership
5219 City Bank Parkway, Lubbock, Texas 79407
MODULE TRUCK SYSTEMS,.INC.
P. O. Box 1299, Woliforth, Texas 79382.
LEASED PREWSM A portion of the real property described its Exhibit "A" attached
hereto and made.a part hereof for all purposes, as further outlined on
the siteplan of s=li property attached hereto as Exhibit" B" and made
apart hereoffar all purposes, together with all irrtprovemeats thereto.
'PERM:
Commencement Date: December 1, 2004
Primary Term: One Hundred Eighty (130) full months from the Commencement
Date, subject to adjustment as provided in Paragraph 3.01,
USE:: Any lawful industrial use.
PART IL
LEASE AGREEMENT
THIS AGREENISNT is made and entered into by and between Landlord and Tenant, as of the Execution Date shown
in the Fundamental Lease Provisions.
ARTICLE I
Y:tll. Fundamentat Lease Provisions. Certain fundamental provisions of this Lease are set out on page (i) of this
instrument,.said pagebeetg.identitied "Fundamental Lease Provisions" and being so-called herein. The Fundamental Lease
Provisions are an integral part of this Lease, and each reference in this Lease to any such.provisionshall be corssrrued to
inoorporateall ofthertetms contained in that provision. In the event of any conflict between any Fundamental Lease Provision
and the. balance ofthis. Lease, the latter shall control.
t.02. Derinftiotts Where used in this Agreement, the terms listed below shall have the meanings indicated.
Additional terms are defined elsewhere in this instrument
(a) "CommencgmentDate"-The date specified in the Fundamental Lease Provisions as the CotmnenvmjentDate.
(b) "Force Maieure" - Strikes, riots, acts of God, shortages of labor or materials, war, govemmental laws,
regulations orrestrictions; or arty other causes ofany Icind whatsoever which arc beyond the reasorab le control
of the pm -ties hereto (but not including financial inability to perform).
Lean rfgreemew Page 1
(c) ,j&ndlotht!ratintt 5xl& se" - All costs, and expenses incurred and/or paid by Landlord under the
provisions of$ection 6M (Taxes and, Assessments),.Seodon 6.02 (insurance), and Section Y.ot (b) (pertaining
to Common Area mArtent=a).
(d) "Lca,g Yeai A period.of twtTvt (12) consecutive months. commencing on the Commencement Date as to
the first Lease Year and any anniversary thereof as tmsubsequent Lease Years.
(e) "1;easedPremiWe - That portion of the Project which is more particularly described in the Fundamental Lease
Provisions and shown an plat attached hereto as Exhibit."B".
(f} "FroiectI -That certain real property identified in Exhabit "A`, including, but not limited to, all improvements
and structures located thereon and Alf rights, privileges, easements and appurtenances belonging or in any way
pertaining thereto.
(g} "Tenant's Proportionate Share" - Party percent (409%).
ARTICLE It
2.01, Demise of ensC4 Premises• in considemdon, ofthe mutual covenants and agreements herein set -forth, and
other good and valuable consideration] Landlord does hertbj demise and lease to Tenant, and Tenant does hereby lease, from
Landlord; effective as ofthe Execution Date sbown in the Fundamental Lease Provisions the Leased Promises; TO HAVE AND
TO'IfOLD the same for the term hereinafter specified and upon the terms and conditions hereinafter set forth.
ARTICLE III
3:d1, PrEM.MTerm. The primary term of this Lease shall be that term`set out in the Fundamental Lease Provisions.
ARTICLE 1V
*M. BaskRey Tenanfs obligation to pay rent under this Least shall commence as of the Commencement Date.
AllrentpayiblebyTenaatpursuanttothis'Section4II1issometimes referredtointhis. Leaseis. the .'Basic Reni`. Beginning
as oftfic Commencement Date, Tenantshallpay8asic.Rent in the amount of $41,320.00 per:Leaso.Year, payable in_twelve(1-2)
equd monthly, installments of'S7,610.fi0%etc, h on or before the first day of each calendar month during such. Lease Year. The
Amount of each monthly i1nStallment0fBasc Rentshali be adjusted effective as of thefirst day of the fourth (4th) lease Year
and as of the firstday of ;each third-(3rd} LeAw Year ifiereafter to -equal the product of (i) forty percent (40°fdb multiplied by
(ii}thc.theti uq t ,nwnddyirdtafimcirtof piincipal and interest payable by Landlord on tbat certain loan in the original principal
amount ofS2;1$4,pt)tk.00 from PEOPLES BANK to Landlord; such,lon being secured bya Deed ofTnrst and ocher liens against
and .securityinterests is the Project. Basic Rent;as so adjusted, shall continue to be payable in twelve.(12) equal monthly
installments during each T.= c Year, With an installment being due on or before the first day of each and every calendar month
during the applicable Lease Year. All,Basie [test shall be paid by Truant to Landlord without demand, deduction or offset of
any ltind whatsoever.
4.02. Additional Tgna.nt Expense_ In addition to Basic Rent, Tenant shall pay to Landlord an amount equal to
Term ni's' l?rapattiorrate Shale of.Landiord`s Operating -Expense. Prior to the Commencement Date and to January 1 of each
succeeding csfendsryeartltraraghout the term of this Lease, Landlord may estimate the arrmuntofLandlord's Operating Expense
which Landlord anticipates will:be incurred during the following calendar year- In such case, the amount ofTenarifs monthly
payment shall bean amount equal to the quotient ofTenant s Proportionate Sham ofLandlord's Operating Expense -(as estimated
by LanatlorOdivided by twelve (12). and slrall be payable.on thefirst day of each caletrdar month: throughout each calendar year,
at the same time as, but.in addition to,. Tenards.paymcnt of l3asic Reim Tenant aclmowfsdges that the amount of such installment
is amestimate and is not fixed and may change from year to year in' accordance with Landlords estimates of Landlord's Operating
Expense. Within ninety(W) days Following the end ofeach calendar year, Landlord shalt furnish to Teamit a written statement
showing the actual Landlord's; Operating Expense far the preceding calendar year, and, Tenant's Proportionate Share of such
expense. hv the, event the total amount of monthly instullramts of Landlord's Operating Expense paid.by Tenant to Landlord
during thepreceding calendar year shall be. less than Tenanes.Proportionate Share of the actual Landlord's Operating Expense,
Tenant shalt pay the balance to Landlord in. cash within. thirty (30) days following Tenant's receipt of Landlord's written
statement. If the total amount of the monthly installments of Landlord's Operating Expense paid by Tenant during such year shall
exceed Tcnaneg Proportionate Share of the actual Landlords Operating Expense, the balance, at Landlord's option, shall (a) be
refunded to Tenant within thirty (30) days following the delivery of Landlord's statement, or (b) be credited against Tenant's
monthly Landlord's. Operating Expense payments for the following year.
4.03. Additional Rent, All sums of whatever character due from Tenant to Landlord or otherwise payable by Tenant
under the terms oftbis Leascshall be deemed to constitute rent. Ifsueb amounts are not paid at the time provided in this Lease,
they shall nevertheless be collectible as rent with the next installmeritof Basic (tent thereafter, falling due, but nothing herein
contained shall be deemed to suspend or delaythe payment of any amount ofmonry or charge at the time the same becomes due
and payable hereunder or to limit any other remedy of Landlord. All amounts ofrent payable in a given month shall be deemed
to comprise a single rental obligation of Tenant to Landlord.
4.04. Late Penit IfTenatrt.f tas to pay any rent within ten (10) days following the date when the same is due and
payable, Tenant a6mowledges that the late payment will cause Landlord to incur certain costs and expenses not contemplated
under this Lease, the exact amount of which costs and expenses is extremely difficult or impractical to fix. Therefore, if any such
rent is not received by Landlord from Tenant within five (5) days from the date dire, Tenant shall immediately pay to Landlord,
Lace A rat
�"' Page ?
in addition to all other rent due, an amount equat to five percent,(5%) of the delinquent rent plus interest an the.delinquent rent
at the lesser of.(i) 18% per armtsat, and Cii}: the maxitpum legal race lrom the date due until paid 5houkl Tenant pay said late
chaigcbut fail to pay conteinpareneousiy-therewith all.unpaidatnounts of rent, Landlord's acceptance of the late charge shall
trot cot stitute a waiver of Tenant's default with respect to"Tenant's. nonpayment of rent nor prevent Landlord. from exercising all
other rights and remedies available to Landlord under this Lease br under law.
4.05. Ptace ofRent Pavtven# All payments of rent shall be made to Landlord at Landlord's address, as designated
in the fundamental Lease Provisions, or at such other place. as Landlord may designate in writing from time to time.
ARTICLE V
5.01. JL% Tenant shall usethe Leased Premises only fur the purpose or purposes specified in the Fundamental Lease
Provisions. Tenant agrees that it will not do any of the following without the express, specific prior consent in writing of
Landlord:
(a) Use or operate anymschiric or equipn*nt that is harmful to the Leased Premises or unreasonablyd-WhAting
to other tenants in the Project;
(G) Do, or"suflbr to be done,. a;iy act,manner or thing objeetiortable to the fire insurance companies- whereby the
fire insurance or any otherinsurancc now in force or hereafter to be piacedon the Leased Premises or any part
thereof or on the Project of which the Leased Premises is apart shall become void or suspended; or. whereby
the same shall be rated at a more hazardous risk than at the date when Tenant received possession hereunder
in case of a breach: of "this covenant, in. addition'to alt other remedies of Landlord hereunder, Tenant agrees to
pay to:Larrdlord as acKiiional rent- arty and all incacase or increases of premiums on insurancecarried by
Landlord on the Leased Premises, or any part thereof:, and on the Project of which the Leased Premises is a
part, caused in any way by the occupancy or use of Tenant.
Further, Tenant agrees:
(v) To; complywithanyand-all requirements of any of the constituted public authorities having jurisdiction and
with the term of anyE State; Federal, -or local statute, ordinance, or regulation applicable to Tenant or its use
of the LeaseA Premises.
(w) To give Landlord prompt written, full, complete, and specific notice of anyacoident, fire or damage occurring
in, on or to, the Leased Premises.
(x) To keep all garbage and refrise in secure containers and to prepare the same for cOection is the manner and
at the times and places specified by.regulations of the public authorities having jurisdiction.
(y) To keep the Leased Premises clean, orderly, sanitary andfree from objectionable odors and from insects,
vermin and other pests: and, with affirmative action, to .disallow the usage and possession of any illegal
substance in, on or upon. the. Leased Premises.
(z) To pay all liens ofeontractomsubeotttraetois,.sub-subcontractors,mechanic's; laborers,; and materialmen and
all other items of.b1ce character and to indemnify. Landlord against all, legal costs acid charges, bond premiums
for release of liens, includingall ataomeyrs fees of Landlord incurred in and about the prosecution or defense
of any suit'in discharging the Premises and, alternatively, the Project or any part or portion thereof from
any liens, charges; judgments, or encumbrances caused or suffered to be caused, directly or indirectly, by
Tenarrt.,and thatall the costs and charges above refereed to shall be considered as rent due and shall be
included in any lien for rent.
At Tenant's sole expense, Tenant shall procure, maintain and hold available for Landlord's inspection any governmental
license or permit required for -the proper and lawfut conduct of Tenant's busirtess. Tenant shall not use, or permit the use of, the;
Leased Premises in any manner that results in waste thereof or constitutes a nuisance, nor shall Tenant use, or permit the use of,
the Leased Premises for any illegal purpose. Tenant, at its expense, will comply and will cause its employees, agents and invitees
to comply, with all applicable laws and ordinances and with all applicable rules and regulations of governmental agencies
concerning the use of the Leased Premises..
5.02. Tenant's Resagnsibility Rmarding Hazardo:tLSubstnnces
(a) The term "Hazardous Substances," as used in this Lease, shall include, without limitation, flammables,
explosives, radioactive materials, asbestos, polychlorinated biphenyls (PCBs), chemicals known to cause
cancer or reproductive toxicity,, pollutants, contaminants, hazardous wastes, toxic substances or related
materials„petroleum and. petroieurnproducts, andsubstances deciared to be hazardous or toxic under any law
or regulation now -or hereafter enacted or promulgated by any governmental authority.
(b) Tenant shall not cause or permit to occur.
(i) Any violation of any federal, state, or local law, ordinance, or regulation now or hereafter
enacted; related to environmental conditions on, under, or about the- Leased Premises and
Project, arising from Tenant's use or occupancy of the Leased Premises and Common Area,
including, but not limited to, soil and ground water conditions; or
Leave Agrmnent Page 3
(ii) The usa, gancrafton,:release, manufachav- refining, production, processing, ,storage, or
disposal of avyHazaidous Substance on, under; or about the. Leased Premises or Project, or
the transpoitatibn to or born the LeasedPremises of any Hazardous Substance.
(c) Tenant shall; at Tenant's own expense; comply with ail- lasts, regulations, rules, decrees and a¢rrdrnkstrative
orders regulating the use, Vneratioi. storage, M*oetattbe, or dbVuQ of Hazardous, Substances ("Laws').
Tenant ball, at Tenant's awn expense; make subtnissions to, provide ail information- required by, and
comply with all teqwrements of as governmental authorities (the "Authorities) under the Laws. Should any
Authority or"ythird party demand that a cIeairup plan be, prepared and-thei a cleanup be undertaken; because
of anydeposlt,_ spill; discharge, or other release of Rawrdars Substances that occurs during the tern of this
Lease,, st of f om the1;casad Premises; -which arises at any tirrte.aMf at any place as a result of.Tenanfs use or
oc;wpaaciofthe.l .eased Pmmisesandit Coiamon Area; then Tenant shah, at Tenant's own expense. prepare
acid spbmit the.reclu*6d plans and all. re&itedboads and other fmarxial. assueanaas; and:Tenant shall carryout
all such cleanup plans %nentsliaTlproatptly provide all infornution regaoding the use. generation, storage,
traiisportation, or.disposal:of Hazardous Substances that is requested -by Landlord: ifT'enant far1sta & in my
dutyimposed udder this subparagraph within a reasonabla blue, Landlord may do sm, and in such case, Temartt
shali.eopperate widi.Lwdlord in order to prepare al) dacwitents landlord deems necessary or appropriate to
determine t9te applttabnli z of ft Laws:to tit f?eesetl P�emiseg and Project andTenarifs.tue thence& and for
e0. ptian(�,-Ih ttevirfr, and Tenant.s5all execrtie all: documents pr�pr7y upon Landhtrd's request N sach
action by Landlord an& no attempt made 4y Landlord to rnitigate damages under any Law shall constitute a
waim of any ofTmanf obligations under, this subgaragrapii. Tenant's obligations and liabilities under this
subparagraph shall. survive therexpiration orterrrdnation ofthis Lease.
(d). Tenant sitaIYinilemnefy, defer4,, and holdharmtess Landlord, the manager:of the Project, and their respective
dinceM dti eetors.beneficaries; shareholders, partners, agents, employees, heirs,:successort and assigns from
al! fines, suits, pmceduras clautts ;azi�3 actions of'every kind, and all costs -associated therewith (including
attorneys, and: ocatsirhants' foes) arisingout of or in any way connected with any deposit, spin, discharge, or
o&w release of £iazardous Substances- that occurs durittg the tam of this Lease, at or from the Leased
Premises,: which:arises at any time and at any place'as a result of Tenant's use or occupancy of the ILeased
Premisesondlor Common Arta, or from Tenant`s failure to provide all information, make all submissions, and
take all stabs requiredby all Authorities under the Laws and all other etrvirotunen tallaws. Tenant's obligations
andliabitities udder" this'subparagraph.shall survive the expiration or termination ofthis Lease.
ARTICLE VI
6,01. Tuxes,and: Assessmonts. Landlord shall pay all real estate taxes (both general and special), assessments and
other governmentatimpositions lawfully Created and assessed agairuC the Leased Premises during the.tertn hereof, provided,
however, that Landlord shall have.no liability to Tenant for failure to pay such tazes,assessments and other impositions at any
time when Tenant is deTriquent is payrnentt of Tenanes Proportionam. Sham of Landlord's Operating Expense. Ther tastes,
assessments and ingros;itions to which -this Section 6.01 refers` shall include, bat'not be limited to, any and all sales tax, gross
receipts tax, use tail, oxciso tax or other similar tart imposed or16vi against rentals or any other charge or payment required
underthis Lease to bemade.byTenantwhioli has beers imposed or levied on or against die same by any governmental agency
Having, or purporting tobave, jurisdiction thereover, as well as any and all costs and expenses incurred andlor paid by Landlord
to any person in connection with Landlord's: contest of any stems which Landlord is required to pay hereunder. Tenant shalt pay
prior to"dehnquencystl"taxes anti;assessments imposed against aWegnipn mot, trade fixtures, furnishings and other pert6nal
property of'T'enant in. on or about the Leased Premises.
6.02. fnsuraoce.
(a) Landlord agrees to rnaintairr insurance covering the Project against.loss or damage by fire and other casualties
included in the so -galled "Extended Coverage Endorsetnent" in an ernount not less than eighty percent (M)
of lire full replacement costotall improvernents.theretu, exclusive of foundations and footings, An sums due
and payable by Trmant.under the pfovisiottsof this Section 6AZ(a) shall be due and payable to Landlord upon
demand. Landlord, at Landlords option. .shallhavethe right to obtain business interruption insurance anchor
loss of rental'. value insurance, including oxtended coverage endorsement, in an amount equal to twelve (12)
months` income from all written and oral leases, concessions and occupancies affecting the Project,. including
the amount of any share of or contributions by Tenants to the operating expenses of the Project. Finally,
Landlord, at its option, may obtain such other insurance coverages as Landlord, irrLandlord's discretion, deems
appropriate or as may be required by any lender of Landlord. All. cost and expense incurred by Landlord
pursuant to the terms of this Section 6.02(a) shall constitute a part of Landlord's Operating Expense for
purposesof this Lease.
(b) TenaA at Tenant's sole cost and expense, shall maintain during the entire term of this Lease (unless otherwise
expressly provided below) the following.
(i) Public liability insurance in an amount not less than $2,500,000.00 combined single -limit
coverage, with coninwr Tally reasonable deductibles, to protect Landlord and Tenant from
any claim arising from the use of the Leased Premises by Tenant or Tenant's agents,
ampto- a subtenants, contractors, guests or invitees.
(u) During the course ot'any construction, alteration or repair of the Leased Premises by Tenant,
builders completed value risk insurance against "all risks of physical loss", including
collapse;and transit coverage with deductibles.not to exceed S1,000.00, in non -reporting
form, covering the total value of work performed and egnipment. supplies and materials
Lease Agreenrerr7
Page 4
furnished: Said poltcy of inwranceshaR contain the "permission to occupy upon completion
of work and occupancy" endorsement.
(iii7 Boiler and machinery insurance .covermg pressumvessels. air to it boilers; machinery,
press=piptn& heating, air-conditioning and eleQator equipmsttand escaiatorequipment,
provided: thIAt' dit Leased Ptcroses codtain.equipreestt of such nature, and insurance against
loss of occupancy or use artsiitg from any such breakdown, in such amounts as are
reasons If satisfactory to Landlord.
(iv) Such other insurance aid in such amounts as may be from time to time required by
Landlord.
(c) All insurance required to be, furnished by Tenant under the terms of this Lease shall be'issued by companies
acceptable: to Landlord, shalt rrame Landlord and sneh other persons as 'l.astdtord may designate as an
addi�rfai i+tsurod and low payee,.and shalt provide that thesame may be canceled or moMied only upon thirty
(30). dapspriorwritten,n6tice to L,andior4 Tenant shall evidence all such insurance coverage by delivering to
Landi*rd'the original copies ofall. policies or, at Landlord`s option; a certificate in lieu thereof issued.by the
insurance companies underwriting such.risk.
(d) Landlord and. Tenant each waive any and every claim which agises ar may arise in its favor and against the
other '"the
term of th i§Leasefnr any and all loss of, .or damage to, any of its property located within or
upon, oregnstitatittg a patio/, the E.eased Premises.'whiich loss or damage is covered by valid and collectible-
fireandextendedcoveragepolicies,to the extentthatsuch-loss ordamage, isrecoverable thereunder. Inasmuch
as lire aflo+ie mutital'vvaiyprs will preclude the assigtimcrtt of any aforesaid claim by way of sttbretgathon (or
othcrwisetoan:insttrancecotnpatty-(oranyotfierpetson),.ianciloiand IeasntsevteialIgagreeimfnedisteiy
to give each insurance compariy:which has issued to itppolicies of insurance, written me dee term of the terof said
mutual waivers; and to have.said iasuraneepaiiches properlyendorscci ifnecessary, to prevent ths'invalidation
of such i nsuntnce coverages -by reason of said waivers.
ARTICLE Viz
1.01, MahitenalteC. Tenant shall, at -its expense, take good care of repair, maintain and replace the Leased Pn rinses
(including maintairangand replacing the roof; structural elements of improvements, parking„ landscaping, windows, plateglass
and doombeatiie ventilation: and. air conditioning equipment artd ducts electricatl, plumbing and all other mechanical equipment
and install'ations).anrt keep the same:free €rom waste and nuisance, and shall deliver up the same.in a clean and sanitary condition
at theme. nination.of this -Lease a pod repair and condition, reasonable wear and tear excepted. In performing its obligations
hereunder, Tenant shall use materials and' labor of kind and quality equal to or better, than the original- work. Tenant
acknowledges and agrees that Landlord is not obligated to repair; maintain or replace any part of the Leased Premises.
742, Utility Services. In addition to all rentals.required herein, Tenant "I pay for all atitities of whatever'kind
or sort.that are used: installed or consumc4 in or upon the Leased.Premises and all•water and sewer charges, as and when the
various charges therefor shall becomi due and.payable; and.Tenant shall pay aqy garbage or trash collectionfar imposed by
gover nmetttat authority or ticenseaor franchisee. Landlord shall have no liability for any interruption in utility services provided
to the Leased Premises unless such interruption resaits from the willful misconduct or sole.negligence of Landlord.
7.01 Alterations. Add ttanT and iTm veme� Tenant shall not make any alterations; additions orimprovements
to-theLeased premises without the priorwritten c sent of Landlord. AP alterations, additions.or improvements made by Tenant
shall become tirepsoPerty ofLandiorcat the termination or expiration of thisLease. provided that Tenant, at Tenant's expense,
shalt remove the ssrne.andl repair all damage to the Leased Premises'andloE Project caused thereby if Landlord so requests. To
the extent that Landloid'consents to and Tenant performs or causes to be performed on the Lensed Premises any work relating
to the alteration or. improvement then;ofor addition' thereto, tenant agrees that it will pay, or cause to be paid, all costs of labor;
services and/or materials supplied in the: prosecution -of any such work and: will keep the Leased Premises and Project free and
view 4all mechanic's liens and other liens on account ofwork done for Tenant or persons claiming under Tenant Landlord, as
a condiitioq of granting its consent to any aiterxtion, additiott>or improvement; may require that Tenant provide- Landlord with
such security as Landlord, in Landlord's sole judgment, shall-doern appropriate toinsure that no suchniechanids liens or other
liens shalt attach to the Leased Premises: In the evenYany such lien is filed against the Leased Premises as a result of Tenant's
work, Temnt at Tenant's sole cost and expense; shall discharge the some within. ten (W) days from the date of filing-, provided,
however, that if Tenant shall desire in good faith to contest any claim of.such Ken, it shall furnish Landlord with adequate
security,.determined in Landlord's sale judgment, to insure that is the event a fin. al judgmentesfabhishing the validity oxexwence
of the Iieri is entered, it will be promptly paid and satisfied., W ithoutlimiring Landlord's other rightsunder the terrna:of this Lease,
in the eventTenaat, within ten (TOY days tram the dale the lien is filed againstthe leased Premises or Project, has not discharged
the same orcontesteditand posted adequate security with Landlord, as provided'horein, Landlord may, but shall not be requited
to, pay said claim, and' any costs-. The amount so paid; together, with reasonable attornty's:fees and other collection expenses
incurred by Landlord in connection themwith;.shall be immediately due and owing from Tenant -to Landlord. In contracting for
any and all such labor,services, and/or materials, Tenant shallnotbe acting as an agent of Landlord, and no claim by any person
providing.such labor, services, and/or materials shall attach to or otherwise encumber Landlord's interest in the Leased Premises.
7.04. F,aulnmentand Fixtures. Tenant shall have the right to erect, install, maintain and operate on the Leased
Premises equipment, decorative items, trade arid business fixtures and other personal property used and useful in Tenant's
business, provided that in so doing Tenant shall not cause any material damage to any part of the Leased Premises. All trade
fixtures, decorative items, machinery,. equipment, shelving and other moveable property and equipment shall not be deemed to
be part of the Leased Premises but shall remain the property of Tenant and shall be removed by Tenant from the Leased Premises
prior to the termination or expiration hereof; provided that Tenant "i not be entitled to remove any such property at any time
Ceaw Agmemmi - PQge 5
Tenantis in defitult heretwder. Tenantshall repair any damage cheesed to thp.:Leased Pretenses by such removal and restore the
Leased Premises to its originalcondition, reasonable wear and tear excepted.
7.05, Sim. Tenant shall not install signs on or about the Leased,Prcmises except with the prior written: consent of
Landlord and pursutant to applibabie taws, codes and ordinances. Prior Wthe. termination or expiration hereof, Tenant shall
remove such signs; provided:that Tenaotsbalf not be entitled to remove any: signs at any ti=Tenant is in default hereunder. All
suede instaflaaons'and-removals siialf not injum.or deface the improvements: and Tenant shall repair any damage caused by such
actions.
7.0b. CQUMWR fPrMrM Diselohner a(W'-Atmttties. BYEXECUTTON OF THIS AGR1rMEW, TENANT
WARRANTS AND-RBPRSSE)MTO LANDLORD THAT TENANT HAS EXAMINED THE LEASED PREMISES, AND
IfAS DETEItMI1vM WED SOI EL'Y`Ui'C N S1UCX,E) AWNATION.AND NO" IN, ANY WAS' NRELIANCE UPON
ANY WARRAMTY OR REPRESENTATiON'OFILANDI.OM THAT THE LEASED PREMISES ARE SUITABY E FOR.
MAi+ITS INTENDED USE ARID THAT TIi= ARE NO DEFECTS OR embed oNs .,AFFEcTim SucH
SUITABILITY WHICHARE ErMER OPEN ANf15 OBVIOt3S_ OR COULD 8E fliStrF}VERED MVREASONABLE
E7Ck.ffNATION OF'FHE.LEASF,I3 PREMISES, TO THE 9AXMJM EDIT PERMITTED BY APPLICABLE LAW,
TENANT HEREBY WANES AND,REL9AMr ANYAND ALL WARRANTIES. EITHER' EXPitESS OR IMPLIED; AS
TO THE CONIDI`T'IONOF THE.LE'ASED.P.REMISES.,INCLUDBUT NOT IMTPED TO, ALL WARRANTMS OF
MERCHANTABILITY, F'IrMS FOR A PARING" i;
TICULAR Pi IRPOSE, AND SUITABILITY FOP, TENANTS 3NTENDED
USE. LANDLORD AND TENANT ACME THAT TLNANP'S DUTIES AND QSLIGATIONS MI118UNDBR„IN1CLtJD NGr
THE OBLIGATTON TO PAY RENT, SKALL W1 WD'EPENDENT OF AND. NOT CONiTINOENT UPON LANDLORD'S
PERFORMANCE OF ANY AND ALP. DUTIES AND RF PONISTHILITIES RILATING TO OR ARISING OUT OF ANY
WARRANTY NOT DISCLrAIMEd BY LANDLORD UNDER THE TERMS OF THIS PARAGRAPH,
7.07. Degtructios or Darnade.
(a) If the teased Premises,, or arty part thoreo&, should be destroyed or damaged by fire or other casualty, Tenant
sl I imrnediatety deliver written notice thie=f to. Landlord.
(b) If the Lour4 Premises Should be totally ;destroyed by fire, tomado.or other casualty, or if they should be so
damaged by avvysuch cs }se sa that reboildiztg orrepairs cannot reasonably be compictedwithin one hundred
eigh1j,(1-Stla days,from the date of such -damage; or if insraanceproceeds actually received by Landlord by
reasoa ofsuch damage or destruction,should,,inLandiord's judgment, be insufcient.to pay the entire cost of
'repairingorrebtriidm& therilsandlord, bywritten notice delivered to Tenant,tnay terminate this Lease effective
as of the. date ofsuch damage:
(c). If the Leased Premises sheuldbe damaged by fire, tornadoor other casualty, bat nottttsuch an.extent that the
rebuilding or repairs cannot nwonably be completed within one hundred eighty (I M days from the date of
such damage,:. or if Landiord otherwise shall_ not have elected to terminate this Lease pursuant to Section
7.07(b) hereof, this Lease shall, not:terminate, but Tenant, at Tenants sole cost and expense, shall immediately
proceed to repair and reWiTd the Leased Premises to at least as good a condition as they were in prior to the
damage or destruction. Landlord agrees' to makc available to Tenant for such purpose all irm rance proceeds
actually received by Landlord by- reason 'of the: damage. or destruction, such proceeds to be made available at
such time and under such conditions as Landlord shall require.
(d) If the Leased Premises are untenantable in whole or in part fnllowting any damage or destruction and this'Lease
is not terminated,:neither Basic Rent nor any other amounts due hereunder shall abate or be reduced (except
tothe extent of any rent loss insurance proceeds received by Landlord).
(e) In the event that this Lease is terminated pursuant to this Section 7.07, Landlord shall receive all insurance
proceedspayable under insurance policies and:relating to:darnage to the Leased Premises. Tenant shallreceive
all proceeds, if arty, ittributabieto the loss of Tenant's equipment, trade and.business fixtures, signs and other
personal property which Tenant is permitted to remove from the Leased Premises under this Lease.
ARTICLE VIII
&OL Default h Landtord. If Landlord shall neglect or fail to perform. or observe any of the terms, covenants or
conditions contained in this Lemon itspart to be performed or observed within a.r�easonable time, but in no event less Chan thirty
(30) dam after written notice of default from Tenant, .then Landlord shall ire deemed to be indefault hereunder. In the event of
Landlord's default, Tenant, as Tenant's sole remedy, may terminate this Crease; Tenant expressly waiving and releasing any and
ail other remedies which mightothenvise be available to Tenant, whether at law or inequity.. it is expressly understood that no
default by Landlord shall constitute consent Landlord for Tenant to perform or observe any terms, covenants or conditions
at Landlords expense, or to fail to fully comply with off ofTenanes obligations under theterrns of this Crease, including, but not
limitedto, payment of rent, Tenant expressly agreeing that Tenants obligations under this Lease are independenrof any and all
obligations on the part o.fLandlord.
8.02. Default by Tenant. The following events shall be deemed to be "events of defauh" by Tenant under this
Lease:
(a) Tenant shall fail to pay any installment ofrent on the date that the same is due.
(b) Tenant shalt fail to comply with any tern, conditioner covenant of this Lease; other than the payment of rent,
and shall not cure such failure within thirty (30) days after written notice thereof from Landlord to Tenant
provided, however, that in the event the nature of Tenant's failure is such that it reasonably cannot be cured
Lemr.to remcnt
Page 6
within this ty (34j.days after written notice from Landlord, Tenant shag not be in default under the terms, of this
Lease ifTenant shalt commence to cure srreh failure within thirty-(30) days after written notice thereof from
Land brd. to Tenant and thereafter shalldiliprdy,, in good.&ith and continuously prosecute such cure to
completion.
(c) Tenant shafl.become insolvent, orshali maitc a transferin fraud ofcreditors, or shall make an assignment for
the benent of creditors.
(d) Tenant-shalt:fiCe a petition under aW section of the Bankruptcy Code or under any other similar taw or statute
oftha l3aitedtstes ore" state thereof; or Tenant sbs#t be.adjudged bAnicmpt. or }nsotvent in procee<tiugs
filed against Tenant and., with renna to, any. involuntary pmeeodings filed against Team 'l enarrt shall fail
to dismiss or cause to bevacacied sueh proceeding or any order entered in:cortnection therewith within ninety
(90) days after.the filing or entry thereof.
(e) A roccivCr oi trustee shell be appointed for the Leased Premises. ov any part thereof and such receiver or trustee
is not dischargoc" or dismissed, within ninetyM9 days after appointment
(f) Tenant:ilia// remove or attempt to mrnove, or shaft disclose, an intention to. remove, Tenant's goods and
properties: from or out of the Leased Premises other than in the ordinary and usual course of business.
9.03. Remedies 2f Landlord: upon theoccurrence-of any event of default, Landlord shall have the option to pursue
any one or more of the following remedies without any further notice or demand_ wbatsoever,
(a) Latn&nd may terraiWe this Lease. In the event thattandfocd shalt temsinate this Lease. Tenant shall pay to
L.turdlord, upon demand and utaddition to, all accrued and unpaid sums owedby Tenant to Landlord hereunder,
an amoiun oc}ust to all rea aehieh would otherwise lie payable for the remainder of the the"atreat term of
this Lease;. verth Tenan s•Flvportioriafe Skase ofLandtord's Operating Zcpense being tc mputet based upon
ilia then -current feaants Pmorhonate Share of Landlords Operating. Lxpetrse Tenant, being 6y
Larndiord esrd Tenant agxs duet if would be iatpossibtaro calculate the wMetamourd of damages suffered by
Landlord by reason ofFertant's iiefhictt<arnt tirattTie sums describer€ hcmin constitute a reasanabteestimate of
such.daptagman d note: penalty for 'Z enaws default
(b) Witlrocetteirawatingthis Lcam;.and-subject to Oplicable law, Fandlord mayreenter and take possession of
the Leased PMmises anti rotsravI s1F-persons and property therefeamn in which event Landlord may, but, except
as otherwise provided by-ltw, shall'notbe required to,refot the Leased I mmisea or any, part thereof; for aii. or
any, pamofthe remainder of the: then.currerst term hereof; to such parties. and_at.such until as Landlord, in
Landlord's jud meM,may be ablbID secure. Should any rental .be less than the rental Tenant is -obligated to
pay under this lease, plus the expense of reletting, then Tenant shaRpayto Landlord, on amonthly basis, the
attrotrrit of arty, deficiency in tble rent For purposes of this; Section 9.03 ft Landlord's expenwof teletting shall
inhtude; but not be limited ta,.aay teasing comtnissionspaid by Landlord in connection with the leasing of the
Leased Prennses to anotherteszant, any sentat ccocessions and altowartces (whetter paid in cash or otherwise)
granted to=any new Tenant and the cost of renovating and/or finishing out the space so that it is suitable for
use by another tenant.
(c) Without turninating this Lease, and subject to applicabre taw, Landlordmay enter into and upon the Leased
Premises, aad-do, whatever Tenant is obligated to do undm the terms ofthis Lease, and Tenant shaTi reimburse
Landlord on dernand, for anye cpeises v hich Landlord may incur in thus effecting compliance with Tenant's
obtigations under this: Lease, together with5mteresi on all sums paid by LandWd at the maximum legal rate
from the date paint bytandlord to ttto date reimbursed by Tenant Tenant farther agrees that Landlord shall not
be liable for any darnabes resulting.to Tenant from such action.
(d) ` rithout limiting aadin addition to Landlord's other remedies hereunder, it is expressly agreed: that at anytime
Tenant is in db&uit hereunder; Landlord may chaaga all locks -on all doors to the Leased Premises and
otherwise exclude Tenant from the Leased Premises. In such case, Landlord shall pea -on a door of the Leastid
Premises a notice stating.thanaand the address, ortalophone number of the individual or company from
which new keys mma may be obtained. Landlord shall not berequired to provide the new keys to Tenant except
during Landlord's regular business hours. Anything contained eisewhem in. this Lease to the contrary
notwithstanding, Landlord shall not be required to deliver any new keys to Tenant or permit. Tenant access to
the Leased Premismuntil such time as Tenant has curedits default Temnt Further agrees that Landlord shall
notbe requited to providaTenantaeeess to Tenant's personal property contained in the Leased Premises during
any time when Tenant is denied access-byreason ofTenant's default.
Pursuit of any one remodyby Lastdtord shalt not precludepurstdt of any other remedy provided herein; nor, shall pursuit of aay
remedy constitute a forfeiture or waiver of any rent. due Landlord or for any damages accusing to Lanndlord by reason of the
violation ofany of the terms, provisions. and covestarits.homin. The remedies set Forth herein shall be it, addition to, and not in
lieu of, any and all other remedies which are available to Landlord at law orequity.
9.04. Tenant's Personal Prrorncrtw Conirncwni Security Interest Without limiting Landlord's rights under this
Lease, in the event Tenant shall default hereunder, all of Tenant's personal property shall remain on the Leased Premises and.
during any period of default, Landlord shall have the right to takeexclusive possession of the same or, at its option, to require
Tenant to remove it In addition to, and not in of, Landlord's statutory lien, it is expressly agreed that Landlord shall have,
and Tenant herebygrants w Landlord, a contractual lien and security interest in all goods, chattels, inventory, furniture, fixtures,
equipment and/or other personal property of any description belonging to Tenant that is placed in, or becomes a part of, the
Leased Premises, as security for rent. due and to become due during the terra hereof and for Tenant's performance of all of
Lease.tgre ent Page 7
Tenants abiigations, 'covenants and condrtiorts hereunder. Tenant shall execute and deliver to Landlord appropriate UCC
Financing Statements as areregnested by`Landford from time to time. Upon default by Tenant, Owner may require-Temantto
assemble aft or any'partof the above -described pemonaf"perty and make it avaI}uble to Owner at any place to be designated
by Owner. Expenses ofretaWng .hoWig,:.preparing-for sate, selling or the tyke of the above-dcscn'bed personai property shall
inchu(areagonable siowney"s.fees and legal akpensesincurred-byLandlord. Upon dofauif by Tenank• Landlord mayexercise_,vry
and aH o€the rights and remedies, of a secured party provided under the Term Business and Coivox-rce Code, as well as any. an d
all other right-, and semedies-possessed by Landlord
ARTICLE IX
9.01. Indemnity: Landlord shall not be liable-fo , aril Tenant shall defend and indetway Landtord from, any claim,
detnandi ltabtliq ;judgment, award, rune . itiecharnc's lien or other fieA toss, damage; expense, charge or cost of any kind or
character' neluding attorrtey`s fees and coact costs}ar sing dit=dy'oriridlrectiy 16M the repair, alteration, improvement, use;
oectgiancy or eiijo-yme t ofiht Leased Premise¢ or any other portion of the Building or Common, Area by Tenant, Tenant's
assignees andror''subtenat4m and their msp adve contractors, agents,.ticensees, or invitees, exctudin& however, claims to the
extent resulting from the negligentof Landlord.
%02. A."Ie'nwaft and SitbkIffite. Tenuntshall not assign this Lease and/or sublet all orany..part of the Leased
Promises without the prior written: consent of,lmdtgrd. It is expressly agreed that Landlord's prior written consent to any
assignmentor subletting; hzlf cortstituta,a conditioaprecwdent to the ef%ctivcn= ofsucbassignment orsubletting; and Landlord
shallnot be bound thereby unfit and unless such cohseat is given. For purposes of this Lease, an "assignment" shatlbe deemed
to include, but not be litnited to; the following:
(a) Arty absolute assignment of some or all of Tenants interest, rights and.duties in the Lease and the Leased
Prenuses, rttcludirrg Tenant`s right to use, occupy and possess the premises, or any part thereof, whether
voluntaryi involuntary. or by operation of,law•,
(b) Any conditional .contingent or: deforred assignment; sublease or conveyance by Tenant of some or aq of
Tenant's interest, rights or duties in the Lease or the Leased. Promises. including:Tenant s right to use, occupy
or• possess. the Leased Preihises,.or any parttbereof, including, without iiimitation, any mortgage, deed of trast,
pledge; hypothecation, Ron, kanchiso, license, concessiom:orotherse tufty arrangement,
(c) If Tenant is a eorp mdoa, limited liability company, partnership or ather Legal entity, the transfer by sale,
assignment, death, inconapetency,,►nortgage, deed of trust;:tcust, operation.oflaw, or otherwise, -of any shares,
menibership interes%,vpting r ghts;or ownership interests wich, would result in a change ihibe identity of the
pemotr:or persons exercising, or;wha stray exercise, effective control of Tenant: unfess such change results from
the tending ofshaies listed otta recogni2ed public stock exchange and such trading is not for the purpose of
acquiring eficcdvs control of Tenant.
9.03. lns2.Wions Tenant shall permit Landlord and its agents to enter into and upon, the Leased` Premises at all
reasonable times for. the purpose ofinspecting the same, for the -purpose of'maintainingor making repairs or alterations required
of Landlord, and for the,ptaVose o€exercising Landlords, rights in the event ofTenartes default hereunder. Landlord miaypiace
'foriease" or "for sale signs in and about the Leased Premises and show the same.to prospective Tenants during the last one
hundred eighty, (180) days of the lease term.
9.04. Corrdemnatfon.
(a) If, daring -the term of this Lease, all or a -substantial part of the Leased Premises should be taken for anypublic
or quasi -public use under any governmental. law, ordinance or regulation or by right of:eii iinent domain, or
shall:besold to the condemning authority under threat ofcondemnation, this Lease shall terminate and the rent
shall: be abated during the unexpired portion ofthisLease, e€fi<otive as of the date oftaking of said premises
by the condemning authority.
(b) if tens than a substantial part of the.Leased Premises shall be taken for any public or quasi -public use under
any governmental law, ordinance or regulation, or by right of eminent domain, or should be sold to the
condemning authority underthreat of condemnation; this Lease shall not terminate but Landlord shall restore
and reconstruct the -Leased Promises provided such restoration. and reconstruction shall make the same
tenantable and suitable for the uses for which the Leased Premises We, leased hereunder and provided further
that Landlord shall not be required to expend any sums in access of condemnation proceeds aetuafly received
by Landlord..Afl minimiumtot* payable: hereunder shall be abated; either in whole or in part, as may be
rim essaryand equitable during any period when such restoration and construction is in progress, and; to the
extent the same relate to the unexpired portion of this Lease, shall'be adjusted equitably for all periods
thereafter.
(c) For purposes of this Section 9.04, it shah be deemed that a substantial part of the Leased Premises has been
taken if in I;andlord's judgment the remaining portions of the Leased Premises, after performing any repairs
and rebuilding required to the same by reason of the taking, reasonably may not be used "by Tenant for the
purposes for which the same are let.
(d) Any other provisions of this Section 9.04 to the contrary notwithstanding, in the event the condemnation
proceeds actually received -by Landlord shalt be insufficient to pay all costs and expenses which may be
incurred in connection with the repair and rebuilding of the remaining portion of the Leased Premises,
Learn �fsreamear
Pt�r 3
Landlord may terminate this Lease by written notice to Tenant, with such termination tobe effective as of the
date of taking.
(e) Landlord shall be entitled to receive the entire condemnation award for the taking of all. real property and
leasehold interests in the LeaseE Premism Tenanl!t right to receive a condemnation award for the, taking pf
its goodwill; r 6mriou, expenses andrar inicresftz in..other thais the real
property taken a fall'not be affected Jilt my manner by, the provisions of this paragraph, provided that
Tenant`s; award does not reduce or affect -Landlord's award.
9.05. SabyrditiadonofLease: ZOOR 419e `e�, iticntes Tenantagmes: that this 'Lease shall basubordim to at all times
taground or tuideriying Leasos and to the liett of my nt gpges, deeds of bust, and, odw encumbrances now or hereaft
affecting tht Leased Premises, or tandtor85 htterestor estate,themin, an&Tenant agr=upon demand to execute suph further
insUvrt�n� subotdittating.dtis Lease as Landtard may request At atty*m anti €tom lime to time, on not mom than five (5) days'
writ" police frond Landtord,,Terrtwt shall en►ecttte; and deltver.to taridlor:l a'wrftten estoppel certificate itt a form acceptable to
.Landlord. Tcnarift: ailure to execitto and deliver the estoppel o"ft sate withinsaW five (5) day period shall be deemed to make
conclusive and bin(kr g upon Tenant tine statett'tents contained 'w the estoppel certificate as trueand correct, without exception.
Unless Tenant shallhavm notified Landlord irrwriting within said Sve'(5) day period of any qualifications Tenant may have to
thestatemeAts in the estoppel certificate,_Landlord and anyoneparticipating with Landlord in the sale or mortgage ofthe Leased
.Premises shall have the right to.rely on.the`accuracy of such atatements.
9.06. &Mader .Tenant.shalt, upon the .termination ofthis Lease, surrender the Leased I'mirtises in good repair
and in a broom clean and sanitary condition,, ressebabie wmai' and icar, Landlord's repairs. and: damage by condemnation or by
fire,, tornado oi= other casualty, not due to the negligence or willful mistcondtict.,of Tenant or Tenartt's employees, agents,
subtenants,:cotrxsxctors,.guests ; or idvitees.excepteit .
9.07. fraidine Owr h Tenet Et .Fit•the event Tenant rernains in possession oftheLeased Premises after expiration
of this Cease andwithout the:gxecutiotrofa new lease, sueh,hoWover,*} R constitute and'bc construed as a tenancy from
month.-to-nnonth.oniy, upon the-samcterms;and'cond ii6ns:containe-4Herein,.except that the min muirtrentAaffbetwice the
minimum rein paid for the.Wrmonth of thaterm hereog; provided: that Landlord, by tha terms hereof,. is not deemed toconsent
to any such hotdover by Tenant and may exercise all rights providedby law to remote Tenant from the LAased Premises.
%06. (Ricer anti Addresses. Fxoept where otherwise expressly provided herein, all notices, demands and
communicationsprovided to•bo givrat under this_Lease shall, be in writing and way -lie givan personally, by overnight.detivery,
or by certified ox regi q d nmV addressed to the proper party; at the address'foi that party shown in the. Fundamental Lease
Provisions~ Notice;shalF 6e`deee tnxd received upon deposit of such notiea in theVrited Statesman, certified mail, return receipt
requested,addressed=as aforesaid, or when actually. received if sent other than by mail. Either party may change. its address upon
fifteen (I5).days' prior written notice to theother hereunder.
9.09. Parties:lsourtd This. L=w shall be binding upon and inure to the benefrt of the parties hereto and their
respective heirs, executors, administrators, legal representatives, successors, and assigns where permitted by this. Lease.
9.10. Aljpllcable Law. This Lease shalt be construed under and in accordance with the laws of the state. of Texas,
and all obligations of the parties hereunder arc performable in Lubbock County, Texas,
9. L j ai"Construction. in case any one or more of the provisions contained in this Lease shall for any reason
be held to be invaiid; illegal,, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any
other prevision hereof and this Lease shalt be construed as if such invalid, illegal or unenforceable provision had never been
contained herein.
9. M Ptior greementsSunerseded. This Lease constitutes the sole and only agreement of the parties hereto and
supersedes any prior understandings or written or oral agreerttents between the parties with respectto the subject matter, within.
9.13. Amendment No amendment, modification, or alteration of the terms hereof shall be binding unless the some
be in writing and duty executed by the parties hereto.
9.14. Watver of Default. No waiver by the parties hereto of any default or breach of any term, condition, or
covenant ofthis Lease shall be deemed to bo waiver of any breach ofthe same or any other term, condition, or covenant contained
herein.
9.15 Attortrev's Rees. In the event Landlord is required to employ attorneys to protect or enforce its rights
hereunder, Tenant agrees to pay Landlord`s reasonable attomey's fees.
9,16. Foreggalear,e Whenever a period of tune is herein prescribed for action to betaken by Landlord or-Tenam,
such party shall not be liable or responsible for, and there shall be excluded from the computation of any such.period of time,
any delays: due to Force Majeure.
9:17. Tfine of the Essence, Time is ofthe essence to this Agreement.
9.18. Exhibits All exhibits referenced herein and attached hereto arc made apart hereof the same as if set forth
verbatim herein.
IN WITNESS WHEREOF, dte undersigned Landlord and Tenant hereto execute this Lease as of the date first above
written,
Lemr.igrermvnt - --
Page 9
LANDLOTM
BEWVF,:LTD:,.a Texas {invited partnership
By: BEMQVE GP, L.L.G, a Texas limitedliability
company, General Partner
�`®.ism: •�
! �MIE
Lease Agrecmegt Page 10
j
EXHIBIT "B"
Description
East 500 feet of Tract C Breedlove Addition to the City of Lubbock, Texas
EXHIBIT "C"
GUIDELINES AND CRITERIA OOVERNING'TAX ABATEMENT
FOR SELECTED TAXING UNITS CONTAW1rD Vflfii�ll
LUBBOCK COUNTY
SECTION I. General Purpose:
The Affected Jurisdictions located wholly within or partially within the County of Lubbock, Texas,
are committed to the promotion of high quality development in all parts of Lubbock County, Texas;
and to an ongoing improvement in the quality of life for the citizens residing within the Affected
Jurisdictions. The Affected Jurisdictions recognize that these objectives are generally served by
enhancement and expansion of the local economy. The Affected Jurisdictions will, on a case by
case basis, give consideration to providing tax abatement, as authorized by V.T.C.A., Tax Code,
Chapter 312, as stimulation for economic development within the Affected Jurisdictions. It is the
policy of the Affected Jurisdictions that said consideration will be provided in accordance with the
guidelines and criteria herein set forth and in conformity with the Tax Code.
Nothing contained herein shall imply, suggest or be understood to mean THAT the Affected
Jurisdictions are under any obligation to provide tax abatement to any applicant and attention is
called to V.T.C.A., Tax Code, Section 312.002(d). With the above rights reserved all applications
for tax abatement will be considered on a case by case basis.
SECTION II. Definitions:
As used within these guidelines and criteria, the following words or phrases shall have the
following meaning:
1. Abatement of Taxes: To exempt from ad valorem taxation all or part of the value of
certain Improvements placed on land located in a reinvestment zone designated for
economic development purposes as of the date specified in the Tax Abatement
Agreement for a period of time not to exceed ten (10) years.
2. Affected Jurisdiction: The County of Lubbock and City of Lubbock.
3. Abatement Agreement: (1) A contract between a property owner and an Affected
Jurisdiction for the abatement of taxes on qualified property located within the
reinvestment zone; or, (2) a contract for the abatement of taxes between an Affected
Jurisdiction and a certified air carrier who owns or leases Real Property located within
the reinvestment zone or Personal Property or both as authorized by V.T.C.A., Tax
Code, Section 312.204(e)
4.. Base Year Value: The assessed value of property eligible for tax abatement as of
January 1 preceding the execution of an Abatement Agreement as herein defined.
5. Distribution Center Facility: A building or structure including Tangible Personal
Property used or to be used primarily to receive, store, service or distribute goods or
materials.
6. Expansion of Existing Facilities or Structures: The addition of buildings,
structures, machinery or equipment to a Facility.
7. Existing Facility or Structure: A facility as of the date of execution of the Tax
Abatement Agreement, located in or on Real Property eligible for tax abatement.
2003 Industrial Guidelines
Amended December 16, 2004
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 2
8. Facility: The improvements made to Real Property eligible for tax abatement and
including the building or structure erected on such Real Property and/or any Tangible
Personal Property to be located in or on such property.
9. Improvements to Real Property or Improvements: Shall mean the construction,
addition to, structural upgrading of, replacement of, or completion of any facility
located upon, or to be located upon, Real Property, as herein defined, or any Tangible
Personal Property placed in or on said Real Property.
10. Manufacturing Facility: A Facility which is or will be used for the primary purpose of
the production of goods or materials or the processing or change of goods or
materials to a finished product.
11. Modernization/Renovation of Existing Facilities: The replacement or upgrading of
existing facilities.
12. New Facility: The construction of a Facility on previously undeveloped real property
eligible for tax abatement.
13. New Permanent Job: A new employment position created by a business that has
provided employment to an employee of at least 1,820 hours annually and intended to
be an employment position that exists during the life of the abatement.
14. Other Basic Industry: A Facility other than a distribution center facility, a research
facility, a regional service facility or a manufacturing facility which produces goods or
services or which creates new or expanded job opportunities and services a market
of which 50% of revenues come from outside of Lubbock County, Texas,
15. Owner: The record title owner of Real Property or the legal owner of Tangible
Personal Property. In the case of land leased from an Affected Jurisdiction or
buildings leased from a private party or tax exempt property, the lessee shall be
deemed the owner of such leased property together with all improvements and
Tangible Personal Property located thereon.
16. Productive Life: The number of years a Facility is expected to be in service.
17. Real Property: Land on which Improvements are to be made or fixtures placed.
18. Regional Services Facility: A Facility; the primary purpose of which is to service or
repair goods or materials and which creates job opportunities within the Affected
Jurisdictions.
19. Reinvestment Zone: Real Property designated as a Reinvestment Zone under the
provisions of V.T.C.A., Tax Code, Section 312.202.
20. Research Facility: A Facility used or to be used primarily for research or
experimentation to improve or develop new goods and/or services or to improve or
develop the production process for such goods and/or services.
21. Tangible Personal Property: Any Personal Property, not otherwise defined herein
and which is necessary for the proper operation of any type of Facility.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 3
SECTION III. Intent of Criteria and Guidelines:
The Intent of the criteria and guidelines, as herein set forth, is to establish the minimum standards
which an applicant for tax abatement must meet in order to be considered for such status by the
Affected Jurisdictions.
SECTION IV. Criteria and Guidelines for Tax Abatement:
Any type of Facility will be eligible for tax abatement consideration provided such Facility meets
the following guidelines and criteria:
1. To qualify for Tax Abatement, the company must meet both of the following criteria:
a) The modernization or expansion of an existing facility of any type as herein
defined or construction of a new facility of any type as herein defined.
b) Producer, manufacturer or distributor of goods and services of which 50 percent
or more are distributed outside of Lubbock County.
2. In addition to the aforementioned, the taxing jurisdiction will consider abatement only
if the company meets one of the following criteria:
a) One of the following target industries:
i) Electronics/Electrical/Assembly: Manufacturing: Semiconductor
Fabrication,
ii) Value-added Agricultural Production including Food Processing and
Machinery
iii) Med Tech Research/Manufacturing/Assembly
iv) Aviation/Avionics Production/Rehab
v) Warehouse/Distribution
vi) Corporate Headquarters of a Regional/National Service Center
b) The project is not included as a target industry, but has the potential of generating
additional significant economic development opportunities to Lubbock
3. The company must meet one of the following criteria:
a) The project will add at least $1 million in real estate assessed valuation, or $2
million of personal property assessed valuation, or 25 new permanent jobs if the
facility is a new company to Lubbock.
b) The project will add at least $500,000 in real estate assessed valuation, or $1
million in personal property assessed valuation, or 20 new permanent jobs if the
facility is a modernization or expansion of an existing company that has
operated in Lubbock for five or more years.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 4
4. New or existing facilities,of any type herein defined, located in a reinvestment zone or
upon Real Property eligible for such status will be eligible for consideration for tax
abatement status provided that all other criteria and guidelines are satisfied
5. Improvements to Real Property are eligible for tax abatement status.
6. The following types of Property shall be ineligible for tax abatement status and shall
be fully taxed.
a) Real Property;
b) inventories or supplies;
c) tools;
d) furnishings and other forms of movable personal property;
e) vehicles;
f) aircraft;
g) housing;
h) boats;
i) hotel accommodations;
j) motel accommodations;
k) retail businesses;
1) property owned by the State of Texas or any State agency; and,
m) property owned or leased by a member of the affected Jurisdiction that did
not have an active tax abatement in place before they became a member of
the governing body or commission.
7. In order for a Facility to qualify for abatement, the following conditions must apply:
a) The owner or leaseholder of real property must make eligible improvements
to the real property; and,
b) In the case of lessees, the leaseholder must have a lease commitment of at
least five (5) years.
c) Facilities located within the certificated territory of the City's municipally
owned electric utility, Lubbock Power and Light (LP&L) must utilize LP&L for
electrical services during the term of the abatement, so long as LP&L's rates
are competitive on a state-wide basis.
8. In reinvestment zones, the amount and term of abatement shall be determined on a
case by case basis, however, in no event shall taxes be abated for a term in excess
of ten (10) years. The amount of the taxable value of Improvements to be abated and
the term of the abatement shall be determined by the municipality in all cases where
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 5
the property for which tax abatement is applied for is within the City limits of the City
or by the County of Lubbock in all cases where the property for which tax abatement
is applied for is outside of the City limits of a municipality, but within the County of
Lubbock, except that a reinvestment zone that is a state enterprise zone is
designated for the same period as a state enterprise zone as provided by Chapter
2303, Government Code. The authority of all other taxing units shall be as set forth in
V.T.C.A., Tax Code, Section 312.206.
In enterprise zones, the governing body of each taxing jurisdiction may execute a
written agreement with the owner of the property. The agreement may, but is not
required to, contain terms that are identical to those contained in the agreement with
the municipality, county, or both, whichever applies, and the only terms for the
agreement that may vary are the portion of the property that is to be exempt from
taxation under the agreement and the duration of the agreement.
9. No property shall be eligible for tax abatement unless such property is located in a
reinvestment zone in accordance with V.T.C.A., Tax Code, Section 312.202 and the
tax abatement application is filed with the taxing jurisdiction before construction
begins.
10. Notwithstanding any of the requirements set forth in Section IV Subsection 3, the
governing body of an Affected Jurisdiction upon the affirmative vote of a three -fourths
(314) of its members may vary any of the above requirements when variation is
demonstrated by the applicant for Tax Abatement that variation is in the best interest
of the Affected Jurisdiction to do so and will enhance the economic development of
the Affected Jurisdiction. By way of example only and not by limitation the governing
body of an Affected Jurisdiction may consider the following or similar terms in
determining whether a variance shall be granted:
a) That the increase in productivity of the Facility will be substantial and hence
directly benefit the economy.
b) That the increase of goods or services produced by the Facility will be substantial
and directly benefit the economy.
c) That the employment maintained at the Facility will be increased.
d) That the waiver of the requirement will contribute and provide for the retention of
existing jobs within the Affected Jurisdiction.
e) That the applicant for tax abatement has demonstrated that if tax abatement is
granted to his Facility even though his Facility will not employ additional personnel
THAT nevertheless due to the existence of said Facility new jobs will be created
as a direct result of his Facility in other facilities located within the Affected
Jurisdiction.
f) Any other evidence tending to show a direct economic benefit to the Affected
Jurisdiction.
11. Taxability:
a) The portion of the value of Improvements to be abated shall be abated in
accordance with the terms and provisions of a Tax Abatement Agreement
executed between the Affected Jurisdiction and the owner of the Real Property
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 6
and/or Tangible Personal Property, (which agreement shall be) in accord with the
provisions of V.T.C.A., Tax Code, Section 312.205.
b) All ineligible property, if otherwise taxable as herein described, shall be fully
taxed.
12. The governing body of each Affected Jurisdiction shall have total discretion as to
whether tax abatement is to be granted. Such discretion, as herein retained, shall be
exercised on a case by case basis. The adoption of these guidelines and criteria by
the governing body of an Affected Jurisdiction does not:
a) Limit the discretion of the governing body to decide whether to enter into a
specific tax abatement agreement;
b) Limit the discretion of the governing body to delegate to its employees the
authority to determine whether or not the governing body should consider a
particular application or request for tax abatement; or,
c) Create any property, contract, or other legal right in any person to have the
governing body consider or grant a specific application or request for tax
abatement.
13. The burden to demonstrate that an application for tax abatement should be granted
shall be upon the applicant. Each Affected Jurisdiction to which the application has
been directed shall have full authority to request any additional information from the
applicant that the governing body of such Affected Jurisdiction deems necessary to
assist it in considering such application.
SECTION V. Criteria and Guidelines for Creation of Reinvestment Zone:
1. No Property shall be eligible for tax abatement unless such property is located in a
reinvestment zone designated as such in accordance with V.T.C.A., Tax Code,
Section 312.202. To be designated as a reinvestment zone an area must meet one
of the following:
a) Substantially arrest or impair the sound growth of the municipality or county
creating the zone, retard the provision of housing accommodations, or constitute
an economic or social liability and be a menace to the public health, safety,
morals, or welfare in its present condition and use because of the presence of:
1. a substantial number of substandard, slum, deteriorated, or deteriorating
structures;
2. the predominance of defective or inadequate sidewalks or streets;
3. faulty size, adequacy, accessibility or usefulness of lots;
4. unsanitary or unsafe conditions;
5. the deterioration of site or other improvements;
6. tax or special assessment delinquency exceeding the fair value of the land;
7. defective or unusual conditions of title;
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 7
8. conditions that endanger life or property by fire or other cause; or,
9. any combination of these factors;
a) Be predominantly open and, because of obsolete platting, deterioration of
structures or site improvements, or other factors, substantially impair or
arrest the sound growth of the municipality;
b) Be in a federally assisted new community located in a home rule
municipality or in an area immediately adjacent to a federally assisted
new community located in a home rule municipality;
c) Be located entirely in an area that meets the requirements for federal
assistance under Section 119 of the Housing and Community
Development Act of 1974 (42 U.S.C. Section 5318);
d) Encompass signs, billboards, or other outdoor advertising structures
designated by the governing body of the municipality for relocation,
reconstruction, or removal for the purpose of enhancing the physical
environment of the municipality, which the legislature declares to be a
public purpose; or,
e) Be reasonably likely as a result of the designation to contribute to the
retention or expansion of primary employment or to attract major
investment in the zone that would be a benefit to the property and that
would contribute to the economic development of the municipality.
2. For purposes of this Section, federally assisted new community is a federally assisted
area:
a) That has received or will receive assistance in the form of loan guarantees under
Title X of the National Housing Act (12 U.S.C., Section 1749aa et seq); and,
b) A portion of which has received grants under Section 107 (a)(1) of the Housing
and Community Development Act of 1974, as amended.
3. The governing body of a municipality, as required by Section 312.201, or a county, as
required by V.T.C.A., Tax Code, Section 312,401, shall hold a public hearing on the
designation of an area within its jurisdiction as a reinvestment zone. The burden shall
be on the owner of the property sought to be included in the zone or applicant for the
creation of the reinvestment zone to establish the following:
a) That the requirements of Subsection 1 of this Section have been met.
b) That the improvements sought are feasible and practical.
4. No later than the seventh day before the date set for the above public hearing notice
of such hearing shall be:
a) Published in a newspaper having general circulation in the Affected Jurisdiction.
b) Delivered in writing to the presiding officer of the governing body of each taxing
unit that includes in its boundaries Real Property that is to be included in the
reinvestment zone.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 8
5. At the public hearing above described in Subsection 3 above, any interested person is
entitled to speak and present evidence for or against the designation of such
reinvestment zone.
6. At the conclusion of the hearing described in Subparagraph 3 above, the governing
body shall enter its findings as follows:
a) That the applicant or owner has or has not met his burden as hereinabove set
forth, and/or,
b) That the improvements sought are or are not feasible and practical.
c) That the proposed improvements sought will or will not be a benefit to the land to
be included in the reinvestment zone and to the Affected Jurisdiction after the
expiration of an agreement entered into under V.T.C.A., Tax Code, Section
312.204.
7. An application for the creation of a reinvestment zone shall not be granted unless the
Affected Jurisdiction considering such application enters affirmative findings to
Subparagraphs a, b, and c of Subsection 6 above set forth.
8. At the conclusion of the public hearing herein required and upon the affirmative
finding of the governing body as required by Subsection 7 above set forth, the
governing body may designate a reinvestment zone in accordance with the provisions
of V.T.C.A., Tax Code, Sections 312.201 or 312.401, whichever Section shall be
applicable under the premises.
9. The designation of a reinvestment zone expires five years after the date of the
designation and may be renewed for periods not to exceed five years, except that a
reinvestment zone that is a state enterprise zone is designated for the same period as
a state enterprise zone as provided by Chapter 2303, Government Code. The
expiration of the designation does not affect an existing tax abatement agreement
made in accordance with V.T.C.A., Tax Code, Section 312.201 through Section
312.209.
10. Designation of an area as an enterprise zone under the Texas Enterprise Zone Act,
Chapter 2303, Subchapter C, Texas Government Code, constitutes designation of
the area as a reinvestment zone under Subchapter B of the Property Redevelopment
and Tax Abatement Act without further hearing or other procedural requirements
other than those provided by the Texas Enterprise Zone Act, Chapter 2303,
Subchapter C, Texas Government Code.
SECTION VI. Tax Abatement Agreement:
1. After the creation of a reinvestment zone as hereinabove authorized a Tax Abatement
Agreement may be executed between the owner and any Affected Jurisdiction. A
Tax Abatement Agreement shall:
a) Establish and set forth the Base Year assessed value of the property for which
tax abatement is sought.
b) Provide that the taxes paid on the base year assessed value shall not be abated
as a result of the execution of said Tax Abatement Agreement.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 9
c) Provide that ineligible property as subscribed in Section IV, Subsection 6,
hereinabove shall be fully taxed.
d) Provide for the exemption of Improvements in each year covered by the
agreement only to the extent the value of such Improvements for each such year
exceeds the value for the year in which the agreement is executed.
e) Fully describe and list the kind, number and location of all of the improvements to
be made in or on the Real Property.
f) Set forth the estimated value of all improvements to be made in or on the Real
Property.
g) Clearly provide that tax abatement shall be granted only to the extent:
1. The Improvements to Real Property increase the value of the Real Property
for the year in which the Tax Abatement Agreement is executed; and,
2. That the Tangible Personal Property improvements to Real Property were not
located on the Real Property prior to the execution of the Tax Abatement
Agreement.
h) Provide for the portion of the value of the improvements to Real Property of
improvements to be abated. This determination is to be made consistent with the
provisions of Section IV, Subsection 6, of these guidelines and criteria as
hereinabove set forth.
i) Provide for the commencement date and the termination date. In no event shall
said dates exceed a period of ten years.
}) Describe the type and proposed use of the improvements to Real Property or
improvements including:
1. The type of facility.
2. Whether the improvements are for a new facility, modernization of a facility,
or expansion of a facility.
3. The nature of the construction, proposed time table of completion, a map or
drawings of the improvements above mentioned.
4. The amount of investment and the commitment for the creation of new jobs.
5. A list containing the kind, number and location of all proposed Improvements.
6. Any other information required by the Affected Jurisdiction.
k) Provide a legal description of the Real Property upon which improvements are to
be made.
1) Provide access to and authorize inspection of the Real Property or improvements
by employees of the Affected Jurisdiction, who have executed a Tax Abatement
Agreement with owner to insure improvements are made according to the
specifications and conditions of the Tax Abatement Agreement.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 10
m) Provide for the
consistent with
redevelopment c
Agreement.
limitation of the uses of the Real Property or improvements
the general purpose of encouraging development or
,f the zone during the period covered by the Tax Abatement
n) Provide the contractual obligations in the event of default by owner, violation of
the terms or conditions by owner, recapturing property tax revenue in the event
owner defaults or otherwise fails to make improvements as provided in said Tax
Abatement Agreement, and any other provision as may be required or authorized
by State Law.
o) Contain each term agreed to by the owner of the property.
p) Require the owner of the property to certify annually to the governing body of
each taxing unit that the owner is in compliance with each applicable term of the
agreement.
q) Provide that the governing body of the municipality may cancel or modify the
agreement if the property owner fails to comply with the agreement.
2. Not later than the seventh day before a municipality or the County of Lubbock(as
required by V.T.C.A., Tax Code, Section 312.2041 or Section 312.402) enters into an
agreement for tax abatement under V.T.C.A., Tax Code, Section 312.204, the
governing body of a municipality or a designated officer or employee thereof or the
governing body of the county of Lubbock or a designated officer or employee thereof
shall deliver to the presiding officer of the governing body of each of the taxing units in
which the property to be subject to the agreement is located, a written notice that the
municipality or the County of Lubbock as the case may be, intends to enter into the
agreement. The notice must include a copy of the proposed Tax Abatement
Agreement.
3. A notice, as above described in Subparagraph 2, is presumed delivered when placed
in the mail, postage paid and properly addressed to the appropriate presiding officer.
A notice properly addressed and sent by registered or certified mail for which a return
receipt is received by the sender is considered to have been delivered to the
addressee.
4. Failure to deliver the notice does not affect the validity of the agreement.
SECTION VII. Application:
Any present owner of taxable property located within an Affected Jurisdiction may
apply for tax abatement by filing an application with the county of Lubbock, when the
Real Property or Tangible Personal Property for which abatement is sought is located
within the County of Lubbock but outside of the City limits of any City or with the
appropriate City when the Real Property or Tangible Personal Property for which
abatement is sought is located within the City limits of a municipality located wholly or
partially within Lubbock County.
2. The application shall consist of a completed application form accompanied by:
a) A general description of the improvements to be undertaken.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 11
b) A descriptive list of the improvements for which tax abatement is requested.
c) A list of the kind, number and location of all proposed improvements of the Real
Property Facility or Existing Facility.
d) A map indicating the approximate location of improvements on the Real Property
Facility or Existing Facility together with the location of any or all Existing Facilities
located on the Real Property or Facility.
e) A list of any and all Tangible Personal Property presently existing on the Real
Property or located in an existing facility.
f) A proposed time schedule for undertaking and completing the proposed
improvements.
g) A general description stating whether the proposed improvements are in
connection with:
1. the modernization of a facility (of any type herein defined); or,
2. construction of a new facility (of any type herein defined); or,
3. expansion of a facility (of any type herein defined); or,
4. any combination of the above.
h) A statement of the additional value to the Real Property or Facility as a result of
the proposed improvements.
i) A statement of the assessed value of the Real Property, Facility or Existing
Facility for the Base Year.
j) Information concerning the number of new jobs that will be created or information
concerning the number of existing jobs to be retained as result of the
improvements undertaken.
k) Any other information which the Affected Jurisdiction, to which the application has
been directed, deems appropriate for evaluating the financial capacity of the
applicant and compatibility of the proposed improvements with these guidelines
and criteria.
1) Information that is provided to an Affected Jurisdiction in connection with an
application or request for tax abatement and which describes the specific
processes or business activity to be conducted or the equipment or other property
to be located on the property for which tax abatement is sought is confidential and
not subject to public disclosure until the Tax Abatement Agreement is executed.
Information in the custody of an Affected Jurisdiction after the agreement is
executed is not confidential. (V.T.C.A., Tax Code, Section 312.003).
m) The Affected Jurisdiction to whom the application for tax abatement has been
directed shall determine if the property described in said application is within a
designated reinvestment zone. If the Affected Jurisdiction determines that the
property described is not within a current reinvestment zone then they shall so
notify the applicant and said application shall then be considered both as an
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 12
application for the creation of a reinvestment zone and a request for tax
abatement to be effective after the zone is created.
SECTION Vlll. Default Options
In the event that the applicant, owner or lessee has entered into a tax abatement
agreement to make improvements as defined in Section IV.2 above, but fails to undertake
or complete such improvements; fails to create all or a portion of the new jobs provided by
the Tax Abatement Agreement; or is in default of any of the terms or conditions contained
in the Tax Abatement Agreement; then in such event the Affected Jurisdiction to whom
the application for tax abatements was directed shall give the applicant or owner sixty (60)
days notice of such failure. The applicant or owner shall demonstrate to the satisfaction
of the Affected Jurisdiction above mentioned that the applicant or owner has commenced
to cure such failure within the sixty (60) days above mentioned. In the event the applicant
owner, or lessee fails to demonstrate that he is taking affirmative action to cure his failure,
the Affected Jurisdiction shall have three options:
(a) The Affected Jurisdiction may renegotiate the Agreement with the applicant,
owner or lessee, in which case the current Guidelines and Criteria Governing Tax
Abatement for Commercial Projects in Designated Enterprise Zones shall apply
to the new Agreement; or
(b) The Affected Jurisdiction may determine that good cause exists to cancel the
Agreement and all abatement of taxes shall terminate immediately; or
(c) The Affected Jurisdiction may terminate the Agreement and recapture taxes
abated under Section Vill. Recapture.
In any of the three options in subparagraph 1 above, the Affected Jurisdiction to which the
application for tax abatement was directed shall determine whether default has occurred
by the applicant, owner or lessee in the terms and conditions of the Tax Abatement
Agreement and shall so notify all other Affected Jurisdictions. Cancellation or termination
of the Tax Abatement Agreement by the Affected Jurisdiction to which the application for
tax abatement was directed shall constitute simultaneous action to all Tax Abatement
Agreements of all other Affected Jurisdictions.
SECTION IX. Recapture
In the event that any type of facility, (as defined in Section II, Subparagraphs 5, 6, 7,
8, 10, 11, 12, 14, 18, 20) is completed and begins producing goods or services, but
subsequently discontinues producing goods or services for any reason, excepting fire,
explosion or other casualty or accident or natural disaster or other event beyond the
reasonable control of applicant or owner for a period of 180 days during the term of a
tax abatement agreement, then in such even the Tax Abatement Agreement shall
terminate and all abatement of taxes shall likewise terminate. Taxes abated during
the calendar year in which termination takes place shall be payable to each Affected
Jurisdiction by no later than January 31 st of the following year. Taxes abated in years
prior to the year of termination shall be payable to each Affected Jurisdiction within
sixty (60) days of the date of termination. The burden shall be upon the applicant or
owner to prove to the satisfaction of the Affected Jurisdiction to who the application
for tax abatement was directed that the discontinuance of producing goods or
services was as a result of fire, explosion, or other casualty or accident of natural
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 13
disaster or other event beyond the control of applicant or owner. In the event that
applicant or owner meets this burden and the Affected Jurisdiction is satisfied that the
discontinuance of the production of goods or services was the result of vents beyond
the control of the applicant or owner, then such applicant or owner shall have a period
of one year in which to resume the production of goods and services. In the event
that the applicant or owner fails to resume the production of goods or services within
one year, then the Tax Abatement Agreement shall terminate and the Abatement of
all taxes shall likewise terminate. Taxes abated during the calendar year in which
termination takes place shall be payable to each Affected Jurisdiction by no later than
January 31st of the following year. Taxes abated in years prior to the year of
termination shall be payable to each Affected Jurisdiction within sixty (60) days of the
date of termination. The one year time period, hereinabove mentioned, shall
commence upon written notification from the Affected Jurisdiction to the applicant or
owner.
2. In the event that the applicant or owner has entered into a tax abatement agreement
to make improvements to a facility of any type described in Section 1 above, but fails
to undertake or complete such improvements or fails to create all or a portion of the
number of new jobs provided by the Tax Abatement Agreement, then in such event
the Affected Jurisdiction to whom the application for tax abatement was directed shall
give the applicant or owner sixty (60) days notice of such failure. The applicant or
owner shall demonstrate to the satisfaction of the Affected Jurisdiction, above
mentioned, that the applicant or owner has commenced to cure such failure within the
sixty (60) days above mentioned. In the event that the applicant or owner fails to
demonstrate that he is taking affirmative action to cure his failure, then in such event
the Tax Abatement Agreement shall terminate and all abatement of taxes shall
likewise terminate. Taxes abated during the calendar year in which termination takes
place shall be payable to each Affected Jurisdiction by no later than January 31st of
the following year. Taxes abated in years prior to the year of termination shall be
payable to each Affected Jurisdiction within sixty (60) days of the date of termination.
In the event that the Affected Jurisdiction to whom application for tax abatement was
directed determines that the applicant or owner is in default of any of the terms or
conditions contained in the Tax Abatement Agreement, then in such even the
Affected Jurisdiction, shall give the applicant or owner sixty (60) days written notice to
cure such default. In the event such default is not cured to the satisfaction of the
Affected Jurisdiction within the sixty (60) days notice period, then the Tax Abatement
Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes
abated during the calendar year in which termination takes place shall be payable to
each Affected Jurisdiction by no later than January 31st of the following year. Taxes
abated in years prior to the year of termination shall be payable to each Affected
Jurisdiction within sixty (60) days of the date of termination.
4. In the event that the applicant or owner allows ad valorem taxes on property ineligible
for tax abatement owed to any Affected Jurisdiction, to become delinquent and fails to
timely and properly follow the legal procedures for their protest or contest, then in
such even the Tax Abatement Agreement shall terminate and all abatement of taxes
shall likewise terminate. Taxes abated during the calendar year in which termination,
under this subparagraph, takes place shall be payable to each Affected Jurisdiction
by no later than January 31st of the following year. Taxes abated in years prior to the
year of termination shall be payable to each Affected Jurisdiction within sixty (60)
days of the date of termination.
5. In the even that the applicant or owner, who has executed a tax abatement
agreement with any Affected Jurisdiction, relocates the business for which tax
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 14
abatement has been granted, to a location outside of the designated reinvestment
zone, then in such event, the Tax Abatement Agreement shall terminate after sixty
(60) days written notice by the Affected Jurisdiction to the Owner/Applicant. Taxes
abated during the calendar year in which termination, under this subparagraph takes
place shall be payable to each Affected Jurisdiction by no later than January 31st of
the following year. Taxes abated in years prior to the year of termination shall be
payable to each Affected Jurisdiction within sixty (60) days of the date of termination.
6. The date of termination as that term is used in this Subsection Vlll shall, in every
instance, be the 60th day after the day the Affected Jurisdiction sends notice of
default, in the mail to the address shown in the Tax Abatement Agreement to the
Applicant or Owner. Should the default be cured by the owner or Applicant within the
sixty (60) day notice period, the Owner/Applicant shall be responsible for so advising
the Affected Jurisdiction and obtaining a release from the notice of default from the
Affected Jurisdiction, failing in which, the abatement remains terminated and the
abated taxes must be paid.
7. In every case of termination set forth in Subparagraphs 1, 2, 3, 4 and 5 above, the
Affected Jurisdiction to which the application for tax abatement was directed shall
determine whether default has occurred by Owner (Applicant) in the terms and
conditions of the Tax Abatement Agreement and shall so notify all other Affected
Jurisdictions. Termination of the Tax Abatement Agreement by the Affected
Jurisdiction to which the application for tax abatement was directed shall constitute
simultaneous termination of all Tax Abatement Agreements of all other Affected
Jurisdictions.
8. In the event that a tax abatement agreement is terminated for any reason what so
ever and taxes are not paid within the time period herein specified, then in such
event, the provisions of V.T.C.A., Tax Code, Section 33.01 will apply.
SECTION X. Miscellaneous:
1. Any notice required to be given by these criteria or guidelines shall be given in the
following manner:
a) To the owner or applicant: written notice shall be sent to the address appearing
on the Tax Abatement Agreement.
b) To an Affected Jurisdiction: written notice shall be sent to the address appearing
on the Tax Abatement Agreement.
2. The Chief Appraiser of the Lubbock Central Appraisal District shall annually assess
the Real and Personal Property comprising the reinvestment zone. Each year, the
applicant or owner receiving tax abatement shall furnish the chief Appraiser with such
information as may be necessary for the abatement. Once value has been
established, the Chief Appraiser shall notify the Affected Jurisdictions which levy
taxes of the amount of assessment.
3. Upon the completion of improvements made to any type of Facility as set forth in
Section VIII, Subparagraph 1 of these criteria and guidelines a designated employee
or employees of any Affected Jurisdiction having executed a tax abatement
agreement with applicant or owner shall have access to the Facility to insure
compliance with the Tax Abatement Agreement.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 15
4. A tax abatement agreement may be assigned to a new owner but only after written
consent has been obtained from all Affected Jurisdictions which have executed such
an agreement with the applicant or owner.
These guidelines and criteria are effective upon the date of their adoption by an
Affected Jurisdiction and shall remain in force for two years. At the end of the two
year period these guidelines and criteria may be readopted, modified, amended or
rewritten as the conditions may warrant.
6. Each Affected Jurisdiction shall determine whether or not said Affected Jurisdiction
elects to become eligible to participate in tax abatement. In the even the Affected
Jurisdiction elects by resolution to become eligible to participate in tax abatement,
then such Affected Jurisdiction shall adopt these guidelines and criteria by separate
resolution forwarding a copy of both resolutions to all other Affected Jurisdictions.
In the event of a conflict between these guidelines and criteria and V.T.C.A., Tax
Code, Chapter 312, then in such event the Tax Code shall prevail and these
guidelines and criteria interpreted accordingly.
8. The guidelines and criteria once adopted by an Affected Jurisdiction may be
amended or repealed by a vote of three -fourths of the members of the governing
body of an Affected Jurisdiction during the two year term in which these guidelines
and criteria are effective.
EXHIBIT "D"
APPLICATION FOR INDUSTRIAL TAX ABATEMENT IN LUBBOCK COUNTY
arts to be
11DELINES
LJB16OCK
M61l ingty
4�.
ORIGINAL COPY OF THIS APPLICATION AND ATTACHMENTS SHOULD BE SUBMITTED TO:
City of Lubbock
Business Development Department
P.O. Box 2000
1625 13`" Street, Suite 105
Lubbock,TX 79457
(806) 775-2019
Date of Application: 12 / 10 / 2004
Applicant Name: Ted Allan Saffell
Company Name: Module Truck Systems Inc
Address: P O Box 1299 Wolfforth TX 79382-1299
Phone: 806-783-0777 Fax: 806-783-0265
Applicants Representative on this project: Same as above
Name:
Address:
Phone:
Type of Ownership: [X] Corporation
[ ] Partnership [ ] Proprietorship
Total Current Number Employees: 35 in Lubbock + 10 in Moultrie Ga
Corporate Annual Sales Per Year: $7.5 million during fiscal year ending 3/3112004; $7 million for seven months
Annual Report Submitted? [ ] Yes [X] No
Tax Abatement Application
Industrial Tax Abatement Application
Page 2
ect�ot� [I t FJ iLI` i I O ti�iR7 ECM s; `'s.r
� u x
Y:
.,
Place a check mark in the box on those statements which are applicable to your company :
(a) This application is for a: [ ] New Facility [ X ] Expansion [ X ] Modernization
(b) Is the company a producer, manufacturer or distributor of goods and services of which 50 percent or more are
distributed outside of Lubbock ?(If yes, provide documentation as Attachment 1)
[ X ] Yes [ ] No
(c) Check the following target industry which is applicable to your company
[ ] Manufacturing Facility: Electronics/Electrical/Assembly, Semiconductor Fabrication
[ ] Value-added Agricultural Production including Food Processing and Machinery
(] Med Tech Research/Manufacturing/Assembly
(] Aviation/Avionics Production/Rehab
[ ] Warehouse/Distribution
[ ] Corporate Headquarters of a Regional/National Service Center
[X] The project is not included in the above target industries, but has the potential of generating additional
significant economic development opportunities in Lubbock. (Provide documentation)
(d) [X] The existing facility to be modernized or expanded or the property where the new facility is to be built is
located in a designated Enterprise Zone.
(e) [ ] New Company to Lubbock
[X] Existing Company
(f) If New Company checked, which of the following statements apply to the project:
(] The project will add at least $1 million in real estate assessed valuation
[ ] The project will add at least $2 million of personal property assessed valuation
[ ] The project will add at least 25 new permanent jobs
(g) If Existing Company checked, which of the following statements apply to the project:
[X] The project will add at least $500,000 in real estate assessed valuation
[ ] The project will add at least $1 million of personal property assessed valuation
[ ] The project will add at least 20 new permanent jobs
(h) Address of proposed facility: 2010 East 50 Street Lubbock TX 79404
(i) Legal description of proposed facility: East 500 feet of Breedlove Addition Tract C
Q) The proposed facility is located in:
School District: Lubbock
City: Lubbock
Industrial Tan Abatement Application
Page 3
(k) Describe product or service to be provided: Manufacture of cotton module mover bed assemblies and installation of
same on special order heavy trucks; service and repair of cotton module mover trucks; parts for all brands of cotton
module mover trucks for customers who wish to repair their own trucks.
Section-llh FACILITY DESCRIPTION
Please attach the following:
Attachment 2
(a) A general description of the improvements to be undertaken (example: modernization of manufacturing facility
located at 4501 Peach Street and purchase of new manufacturing equipment).
(b) A descriptive list of the improvements for which tax abatement is requested, including:
(1) description of construction and location of all proposed improvements of the Real
Property or Existing Facility, and;
(2) list of new equipment and cost of the equipment.
(c) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing
facility.
(d) A proposed time schedule for undertaking and completing the proposed improvements.
Attachment 3
(a) A site map indicating the approximate location of improvements on the Real Property Facility or Existing Facility
together with the location of any or all Existing Facilities located on the Real Property or Facility.
Attachment 4
(a) A statement of the additional value to the Real Property or Facility as a result of the proposed improvements.
(b) A statement of the assessed value of the Real Property, Facility or Existing Facility for the base year (attach tax
assessment for property from the Lubbock Central Appraisal District).
Section IV ECONOMIC IMPACT INFORMATION
Part A — Current Investment in Existing Improvements: $ 680,000.00
Part B — Permanent Employment Estimates:
(1) If existing facility, what is the current plant employment: 35
(2) Estimated number of new jobs to be created and time frame for creation of jobs:
New Jobs up to 10 Time Frame two years
Industrial Tax Abatement Application
Page 4
(3) Opening of improvements: (Month) April of (Year) 2005.
Part C — Permanent Payroll Estimates:
(1) If existing facility, what is the current plant payroll: FY 2003: $ 1,288,520.98; FY 2004: $ 874,619.34
(2) Estimated amount of new payroll: $ 1,500,000.00
Part D — Construction and Employment Estimates:
(1) Construction start: Month December Year 2004.
(2) Number of construction jobs: At Start 5 Peak 50 Finish 5
(3) Number of man-years: 3
Part E — School District Impact Estimates:
Give Estimated number of: Families transferred to area 0
Children added to ISD's 0
Part F — City Impact Estimates:
(1) Volume of treated water required from City N/A gallons per day.
(2) Volume of effluent to be treated by City N/A gallons per day.
(3) Please provide a statement on planned water and sewer treatment methods, and disposal of effluent if
the facility is to be located outside City systems.
(4) Has permitting been started? D Yes X No
Part G — Estimated Appraised Value on Site:
LAND
Value of Existing Facility
Before New Construction
(From Central Appraisal District) 73,586
Value of New Improvements
NA
PERSONAL IMPROVEMENTS
PROPERTY
1,006,037 818,560
50,000 500,000
Estimated Total Value After
Improvements 73,586 1,056,037 1,318,560
NOTE: Existing Facility Land & Improvements were purchased November 29, 2004, for $ 1,700,000.00.
Existing Facility Land & Improvements listed above are 40% of 2004 Lubbock Central Appraisal District values.
Industrial Tax Abatement Application
Page 5
Part H — Variance:
(a) Is a variance being sought under Section IV 9(d) of the "Guidelines"? [ ] Yes [ X ] No
(b) If "Yes", attach any supplementary information required.
(a) Has applicant made application for abatement of this facility by other taxing jurisdictions or counties?
[ ] Yes [ X ] No
(b) If "Yes", please provide:
(1) Dates of Application:
(2) Hearing Dates:
(3) Name of Jurisdiction(s):
(4) Name of Contact(s):
(4) Attach any letters of intent to abate.
To the best of my knowledge, the above information is an accurate description of project details.
Company Official Signature
Ted Allan Saffell
Printed Name of Company Official
Secretary - Treasurer
Title of Company Official
Industrial Tax Abatement Application
Module Truck Systems, Inc.
Attachment 1
During the 2004 model year, Module Truck Systems built
60 cotton module mover beds. Four of those beds were
delivered to customers in Lubbock County. Fifty-six beds
were delivered to customers between Virginia and
California across the cotton belt.
Industrial Tax Abatement Application
Module Truck Systems, Inc.
Attachment 2
Remodel the east building of the old Eagle Picher factory site into two
suites to accommodate two companies. Module Truck Systems will utilize
-65,000 sq ft of the building and B C Supply will utilize-150,000 sq ft. Both
companies will move all their local operations into the building. Both
companies will construct new offices at the building, and various paving
projects will be completed to accommodate the two companies.
1. The north 150' of the concrete paving east of the building will be
modified to provide MTS with a driveway and BC Supply with a drive
and parking lot.
2. An employee parking lot large enough to accommodate at least 50
vehicles will be paved east of the existing concrete paving beginning
-150' south of 50th Street and located south & east of the MTS' drive.
3. MTS will build a 4,000+ sq ft corporate office building against the
outside of the east wall of the existing building starting -190' south of
the north end of the existing building. A gated fence will extend east
from the south wall of the office building to the east edge of the
existing concrete paving and the existing fence to form the northern
end of a secure outside area to provide MTS with secure parking for
customer's trucks awaiting repairs.
4. Inside the east wall of the existing building -125' south of the north
end an existing wall extends west 50' and connects to the north-east
corner of an existing two story 25x60' office building. MTS will extend
the north and west walls of the existing office structure to the building
ceiling and then build a 1 hour firewall from the south-west corner of
the existing office structure south -550' to the south end of the
building. This wall, combined with the existing east -west wall and the
north and west sides of the office structure will be the division of the
existing building between space for MTS and space for BC Supply.
There will be a small overhead door opening in this wall to allow
controlled access between the two businesses since each business
intends to sell its services to the other. The existing HVAC and
electrical power distribution systems in the building will be modified
so that each company controls its own HVAC and electrical power
distribution systems.
5. MTS will extend 175' of the east wall of the building 25' to the east to
create a 75'x175' truck repair shop. The south end of the truck repair
shop will be 275' from the south end of the building. MTS will install
10 each 20' wide x 16' high overhead doors in the east wall of the
existing building in the 250' of the wall beginning —200' north of the
south end of the building: The new overhead doors will be the
entrances to the truck repair bays of our shop. The existing building
currently has a cinder block & sheet rock wall located 50' west of the
east outside wall beginning at the south end of the building and
running north to the existing office structure. This wall has overhead
doors at the north and south end of the wall. MTS will demolish this
wall from the existing office structure south —75' to allow our parts
department to utilize the entire 110' width of the MTS area of the
building in the north 75' of the MTS area. MTS will also demolish
another 50' of this wall between 225' and 275' north of the south end
of the building to allow new truck production to utilize the full 110'
width of the MTS building area. The remaining portion of this wall will
be upgraded to a 2 hour rated firewall which will form the western
limit of the truck repair shop. Two new 2 hour rated firewalls will built
across the outside 50' bay of the building at the north and south ends
of the truck repair shop.
6. MTS will build a new employee restroom facility —200' north of the
south end of the existing building (depending on the availability of
plumbing connections).
7. MTS intends to install a state-of-the-art paint booth inside the existing
building within 50' of the east outside wall —150' from the south end of
the building. Eagle Picher's existing `paint kitchen' is located outside
the east wall of the building in this area and will probably be utilized
by MTS as a paint mixing and storage facility.
8. A —4,500 sq ft two story office structure will be constructed for BC
Supply inside the building north and west of the existing office
structure.
9. A security fence will be built from the south end of the building to the
south property line, completing the secure parking area for MTS'
customers' trucks.
10. The existing driveway between the east building and the brick office
building will be widened to allow two way traffic and straightened to
provide direct access to 50th Street. This drive will provide access to
employee parking on the paved area between the two metal
buildings.
11. An unpaved area between the two metal buildings will be paved to
make all the area between the two metal buildings paved for
employee parking.
Module Truck Systems expects to purchase the following equipment:
Replace existing medium fork lift $ 18,000.00
Electric fork lift $ 11,000.00
Additional Wire Welders $ 7,500.00
Shop tug to move trailers $ 5,000.00
Parts mover (electric golf cart w/ trailer) $ 3,500.00
Personnel movers - 3 (electric golf carts w/ rear bench) $ 5,000.00
Note: These prices are for new equipment. MTS will probably
purchase good used equipment rather than new equipment which
may cut our equipment investment in half.
Module Truck Systems' depreciation schedule of current furniture, fixtures,
equipment, and vehicles is attached.
Module Truck Systems will begin the listed improvements in December
2004 and hopes to have all improvements completed by July 2005.
Asset Depreciation Report - Sorted by ASSET A/C#
Company: MODULE TRUCK SYSTEMS, INC. Year End: 03/31/05
Method: 1 - FEDERAL Std Conv Applied File: GAAKDATA041M221
Range: A180 - LAND -(GA.) - A187 - VEHICLES Include: Ali assets
Page: 1
Date: 05/17/04
Time: 10:07:03
Date Acq Description Inv. Cr.
Cost
Sec. 179
Depr Basis Curr. Depr
Beg A/Depr Sell Price
Date Sold Meth - Conv - Life - ITC - Stat - New - Listed Depr. Yr,
Net Book Value
Salvage Value
Bus. Percent Curr. AFY Depr.
End A/Depr Gain/Loss
ASSET A/C#: A18O - LAND -(GA.)
01/25199 LAND-6,07 ACRES (GA.) 0.00
24,280.00
0.00
24,280.00 0.00
0.00
LAND HY 99.00 Omit Active New Not Listed 7
24,280.00
0,00
100.00% 0.00
0.00
Totals for ASSET A/C#: A180 (1 assets)
24,280.00 0.00
24,280.00
0.00
0.00 0.01
24,280.00 0.00
0,00
0.00 0.0(
Summary For: A180
Cost
Section 179 t
Accum. Depr.
= Total
Beginning Balances (1 assets)
24,280.00
0.00
0.00
0.00
+ Additions (A) (0 assets)
0.00 Curr. Depr.
0.00
0.00
0.00
Subtotals
24,280.00
0.00
0.00
0.00
- Disposals (D) and Trades (T) (0 assets)
0.00
0.00
0.00
0.00
Ending Balances (1 assets)
24,280.00
0.00
0.00
0.00
kSSET A/C* A181 -BUILDING (GA.)
)1/25/99 BUILDING -(GA.)
0.00
117,960.00
0.00
117,960.00
3,024.62
15,753.23
MACRS MM 39.00 Omit Active New Not Listed
7
99,182.15
0.00
100.00%
0.00
18,777.85
0130100 3 TON A/C GA
0.00
2,059.00
0.00
2,059.00
189.76
1,110.22
MA200 HY 10.00 Omit Active New Not Listed
5
759.02
0.00
100.00%
0.00
1,299.98
otals for ASSET A/C#: A181
(2 assets)
120,019.00
0.00
120,019.00
3,214,38
16,863.45 0.00
99,941.17
0.00
0.00
20,077.83 0.00
Summary For: A181
Cost
Section 179 +
Accum. Depr.
: Total
Beginning Balances
(2 assets)
120,019.00
0.00
16,863.45
16,863.45
+ Additions (A)
(0 assets)
0.00
Curr. Depr.
0.00
3,214.38
3,214.38
Subtotals
120,019.00
0.00
20,077.83
20,077.83
- Disposals (D) and Trades
(T) (0
assets)
0.00
0,00
0.00
0.00
Ending Balances
(2 assets)
120,019.00
0.00
20,077.83
20,077.83
SSET AIC#: A183 - MACHINERY 8 SHOP EQUIP.
1/15196
MISCELLANEOUS EQUIPMENT
0,00
132,435.54
0.00
132,435.64
0.00
132,435.64
M'200 HY 7,00 Omit
Active New
Not Listed
9
0.00
0.00
100.00%
0.00
132,435.64
)/23/96
314- MAGNETIC DRILL
0.00
1,249.00
0.00
1,249.00
0.00
1,249.00
M'200 HY 7.00 Omit
Active New
Not Listed
9
0.00
0.00
100.00%
0.00
1,249.00
2/16196
7X12" BANDSAW
0.00
809.74
0.00
809.74
0.00
809.74
M'200 HY 7.00 Omit
Active New
Not Listed
9
0.00
0.00
100.00°%
0.00
809.74
J25/97
BATTERY CHARGER
0.00
369.90
0.00
369.90
0.00
369.90
M'200 HY 7.00 Omit
Active New
Not Listed
9
0.00
0.00
100.00%
0.00
369.90
t/19197
`19SE "
a BIEG
0.00
2,342.63
0.00
2,342.63
0.00
2,342.63
-4 WID44ti:161G ti^
cn
M'200 HY 7.00 Omit
Active New
Not Listed
9
0.00
0,00
100.00%
0.00
2,342.63
125/97
LIGHTS -SHOP
0.00
3,352.32
3,352.32
0.00
0.00
3,352.32
MA200 MO 7.00 Omit
Active New
Not Listed
8
0.00
0.00
100.00°%
0.00
3,352.32
/09/97
WELDER-TBOLT 225V
0.00
235.00
0.00
235.00
0.00
235.00
M'200 MO 7.00 Omit
Active New
Not Listed
8
0.00
0.00
100.00%
0.00
235.00
126/97
ELEC. WELDER PLUGS
0.00
765.32
765.32
0.00
0.00
765.32
MA200 MO 7.00 Omit
Active New
Not Listed
8
0.00
0.00
100.00%
0.00
765.32
'03/97
r-C_A:5:
0.00
3,850.00
3,850.00
0.00
0.00
3,850.00
NIA200 MO 7.00 Omit
Active New
Not Listed
8
0.00
0.00
100,00%
0.00
3,850.00
31/97
AIR LINE DUCT
0.00
6,378,72
814.12
5,564.60
307.93
6,070.79
M'200 MO 7.00 Omit
Active New
Not Listed
8
0,00
0.00
100.00%
0.00
6,378.72
10198
TECHNIC PNEUMATIC LAUNCHER/
0.00
1,345.81
0.00
1,345-81
119.16
1,152.18
M'200 MO 7.00 Omit
Active New
Not Listed
7
74.47
0.00
100,00%
0.00
1,271.34
10/98
~461
1R
0.00
962.75
0.00
962.75
85.24
824.23
M'200 MQ 7.00 Omit
Active New
Not Listed
7
53.28
0.00
100.00%
0.00
909.47
LIldG_o Owr tYEns Aatc Rtroirrtb 1-4 Coit as rr (OMt4 'YF CAA
Asset Depreciation Report - Sorted by ASSET A/C#
Page: 2
Company. MODULE TRUCK SYSTEMS, INC.
Year End:
03/31/05
Date: 05/17/04
Method: 1 - FEDERAL
File: G:WKDATA041M221
Time: 10:07:03
Date Acq
Description
Inv. Cr.
Cost
Sec. 179
Depr Basis
Curs. Depr
Beg A/Depr Sell Price'
Date Sold
Meth - Conv - Life - ITC - Stat - New - Listed Depr. Yr. Net Book Value
Salvage Value
Bus. Percent
Curr. AFY Depr.
End A/Depr Gain/Loss
ASSET A/C#: A193 - MACHINERY & SHOP EQUIP.
12122/98
STORAGE RACK
0.00
1.321.48
0.00
1,321.48
0.00
1,321.48
M"200 MQ 5.00 Omit Active New
Not Listed
7
0.00
0.00
100.00%
0.00
1,321.48
08/09/99
SHOP SEPTIC DRAIN LINE
0.00
1,500.00
0.00
1,500.00
133.87
1,165.32
M'200 HY 7.00 Omit Active New
Not Listed
6
200,81
0.00
100.00%
0.00
1,299.19
04/28/00
RACK, CHAIN TIGHTENER, TOOL STG.
0.00
537.51
0.00
537.51
47.97
369.61
MA200 HY 7.00 Omit Active New
Not Listed
5
119.93
0.00
100.00%
0.00
417.58
W26100
3 SHOP BUILT PAINT LOCKERS
0.00
2,007.35
0.00
2,007.35
179.15
1,380.31
MA200 HY 7.00 Omit Active New
Not Listed
5
447.89
0.00
100.00%
0.00
1,559.46
)6/13/00
HYDRAULIC TABLE CART
0.00
215.74
0,00
215.74
19.25
148.35
MA200 HY 7.00 Omit Active New
Not Listed
5
48.14
0.00
100.00%
0.00
167.60
)7/25/00
0.00
293.80
0.00
293.80
26.22
202.02
MA200 HY 7.00 Omit Active New
Not Listed
5
65.56
0.00
100.00%
0.00
228.24
10/13/00
50 TON PRESS CYLINDER
0.00
698.00
0.00
698.00
62.30
479.96
MA200 HY 7.00 Omit Active New
Not Listed
5
155.74
0.00
100.00%
0.00
542.26
0/25/00
A70 CONTROLLER READER
0.00
471.81
0.00
471.81
42.11
324.43
MA200 HY 7.00 Omit Active New
Not Listed
5
105.27
0.00
100.00%
0.00
366.54
0/26/00
0.00
466.08
0.00
466.08
41.60
320.49
MA200 HY 7.00 Omit Active New
Not Listed
5
103.99
0.00
100.00%
0.00
362.09
0/31/00
PLASMA TORCH SETUP
0.00
404.00
0.00
404.00
36.06
277.80
MA200 HY 7.00 Omit Active New
Not Listed
5
90,14
0.00
100.00%
0.00
313.86
0/31/00
2 A70 READER ADAPTERS
0.00
396.08
0.00
396.08
35.35
272.36
MA200 HY 7.00 Omit Active New
Not Listed
5
88.37
0.00
100.00%
0.00
307.71
1/03/00
14" CHOPSAW
0.00
244.95
0.00
244.95
21.86
168.44
MA200 HY 7.00 Omit Active New
Not Listed
5
54.65
0.00
100,00%
0.00
190.30
2/08/01
SHOP BUILT SHOP PRESS
0.00
5,764.94
0.00
5,764.94
514.51
3,964.15
MA200 HY 7.00 Omit Active New
Not Listed
5
1,286.28
0.00
100.00%
0.00
4,478.66
J17/01
6 HY-BAY 40OW HPS LAMPS
0.00
8,574.33
0.00
8,574.33
765.25
5,895.97
MA200 HY 7.00 Omit Active New
Not Listed
5
1,913.11
0.00
100.00%
0.00
6,661.22
1124101
PIPE BENDER DIE
0.00
350.00
0.00
350.00
43.73
196.94
MA200 HY 7.00 Omit Active New
Not Listed
4
109.33
0.00
100.00%
0.00
240.67
1/26/01
BOW LIFT PATENT
0.00
620.00
0.00
620.00
41.33
106.77
AMORT FM 15.00 Omit Active New
Not Listed
4
471.90
0.00
100.00%
0.00
148.10
/20/01
VAN BOW LIFT JIG
0.00
274.09
0.00
274.09
34.25
154.23
MA200 HY 7.00 Omit Active New
Not Listed
4
85.61
0.00
100,00%
0.00
188.48
117/01
0.00
901.96
0.00
901.96
112.70
507.52
MA200 HY 7.00 Omit Active New
Not Listed
4
281.74
0.00
100,00%
0.00
620.22
/31/02
0.00
1,430.72
0.00
1,430.72
178,77
805.04
MA200 HY 7.00 Omit Active New
Not Listed
4
446.91
0.00
100.00%
0.00
983.81
(14102
2 BED STANDS
0.00
939.85
0.00
939.85
117.43
528.84
MA200 HY 7.00 Omit Active New
Not Listed
4
293.58
0.00
100.00%
0.00
646,27
117/02
0.00
290.94
0.00
290.94
34.14
171.45
MA200 MO 7.00 Omit Active New
Not Listed
3
85.35
0.00
100.00%
0.00
205.59
'27/02
RMS SHELVING
0,00
1,293,59
0.00
1,293.59
151.80
762.30
MA200 MQ 7.00 Omit Active New
Not Listed
3
379.49
0.00
100.00%
0.00
914.10
31/02
REYNOLDS MODULE SYSTEMS
0.00
13,000,00
0.00
13,000.00
1,525.51
7,660.71
MA200 MO 7.00 Omit Active New
Not Listed
3
3,813.78
0.00
100.00%
0.00
9,186.22
24/02
9"METAL CUTTING SAW
0,00
862.95
0.00
862.95
101.26
508.53
MA200 MO 7,00 Omit Active New
Not Listed
3
253.16
0,00
100.00%
0.00
609.79
18/02
96 +"
0.00
267.45
0.00
267.45
34.11
14&06
MA200 MQ 7.00 Omit Active New
Not Listed
3
85,28
0.00
100.00%
0.00
182.17
8102
0.00
280.34
0.00
280.34
35.76
155.19
MA200 MO 7.00 Omit Active New
Not Listed
3
89.39
0.00
100,00%
0.00
190.95
Asset Depreciation Report - Sorted by ASSET A/C#
Page: 3
Company: MODULE TRUCK SYSTEMS, INC.
Year End: 03/31/05
Date: 05/17/04
Method:
1 - FEDERAL
File: G:IAKDATA04Vvl221
Time: 10:07:04
Date Acq
Description
Inv. Cr.
Cost
Sec.179
Depr Basis
Curr. Depr
Beg A/Depr Sell Price
Date Sold Meth - Conv - Life - tTC - Stat - New - Listed
Depr. Yr.
Net Book Value
Salvage Value
Bus. Percent Curr. AFY Depr.
End A/Depr Gain/Loss
ASSET A/C#: A183 - MACHINERY & SHOP EQUIP.
11/07/02
1/2" ELECTRIC DRILL
0.00
144.55
0.00
144.55
18.44
80.02
MA200 MQ 7.00 Omit Active New Not Listed
3
46.09
0.00
100.00%
0.00
98.46
12/11/03
DRAWINGS & PATTERNS
6.00
45,000.00
�L 0.00
3
45,000.00
8,855.69
14,005.10
MA2G0 MQ 7.00 Omit Active Used Not Listed
3
2-2,139.21
0.00
100.00%
0.00
22,860.79
)2/11/03
JIGS & FIXTURES
0.00
47,500.00
Zv 0.00
47,500.00
9,347.67
14,783.18
MA200 MQ 7.00 Omit Active Used Not Listed
3
23,369.17
0.00
100.00%
0.00
24,130.83
)4/18/03
27' STORAGE MODULE
0,00
1,941,75
y5% s 1,941.75
0.00
0.00
1,941.75
MA200 HY 7.00 Omit Active Used Not Listed
2
0.00
0.00
100,00%
0.00
1,941.75
)4/23/03
0.00
2,461.00
��a 2,461.00
0.00
0.00
2,461.00
MA200 HY 7.00 Omit Active New Not Listed
2
0.00
0.00
100.00%
0.00
2,461.00
'-
0/30/03
LUBBOCK-CHAIN OILER VAT
0.00
1,351.673;4 1,351.67
0.00
0.00
1,351.67
MA200 HY 7.00 Omit Active New Not Listed
2
0.00
0.00
100.00%
0.00
1,351.67
1/29/04
SHOP VISE
0.00
268.61
268.61
0.00
0.00
268.61
MA200 HY 7.00 Omit Active New Not Listed
2
0.00
0.00
100,00%
0.00
268.61
otals for
ASSET A/C#: Al83 (45 assets)
296,172.37
14,804,79
281,367.58
23,070.42
216,344.33 0.00
56,757.62
0,00
0.00
239,414.75 0.00
Summary For: A183
Cost
Section 179 +
Accum. Depr.
Total
Beginning Balances (45 assets)
296,172.37
14.804.79
201,539.54
216,344.33
+ Additions (A) (0 assets)
0.00
Curr. Depr.
0.00
23,070.42
23,070.42
Subtotals
296,172.37
14,804.79
224,609.96
239,414.75
- Disposals (D) and Trades (T) (0 assets)
0.00
0.00
0.00
0.00
Ending Balances (45 assets)
296,172.37
14,804.79
224,609.96
239,414.75
SSET A/C#: A185 - FURNITURE & FIXTURES
)/15/96
MISC. FURNITURE & FIXTURES
0.00
150,151.95
0.00
150,151.95
0.00
150,151.95
M•200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
150,151.95
i/23/96
PRODUCTION RECORD FILES
0.00
1,037.76
0.00
1,037.78
0.00
1,037.76
M-200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
1,037.76
1/23/96
HP INKJET PRINTER
0.00
354.05
0.00
354.05
0.00
354.05
M•200 HY 5.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
364.05
/23/96
SAMSUNG MONITORS
0.00
1,604.68
0.00
1,604.68
0.00
1,604.68
M•200 HY 5.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
1,604,68
123/96
CREDENZA & DESK
0.00
958.74
0.00
958.74
0.00
958.74
M•200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
958.74
'23/96
VHS-C CAMCORDER
0.00
539.36
0.00
539.36
0.00
539.36
M'200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
539.36
24/96
TELEPHONE STAND
0.00
107.85
0.00
107.85
0.00
107.85
M-200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
107.85
25196
DESK W/RETURN
0.00
701.19
0.00
701A9
0.00
701.19
M•200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
701.19
?5/96
7 ALMA SIDE CHAIRS
0.00
641.86
0.00
641.86
0.00
641.86
M-200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
641.86
:5/96
LIGHTED EXIT LIGHT
0.00
1,062.67
0.00
1,062,67
0.00
1.062.67
M•200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
1.062.67
8/96
MAGNAVOX TVNCR
0.00
496.14
0.00
496.14
0.00
496.14
M•200 HY 7.00 Omit Active New Not Listed
9
0.00
0,00
100.00%
0.00
496.14
8196
AMOIRE LATERAL STANDS
0.00
767.22
0.00
767.22
0.00
767.22
M•200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
767.22
2196
FELLOWES PS60CCSHREDDER
0.00
215.74
0.00
215.74
0.00
215.74
M'200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
215.74
198
CONFERENCE CHAIR
0.00
379.72
0.00
379.72
0.00
379.72
M'200 HY 7.00 Omit Active New Not Listed
9
0.00
0.00
100.00%
0.00
379.72
Asset Depreciation Report - Sorted by ASSET A/C#
Page: 4
Company: MODULE TRUCK SYSTEMS, INC.
Year End:
03/31/05
Date: 05/17/04
Method: 1 - FEDERAL
File: G:IAKDATA041M221
Time: 10:07:05
Date Acq
Description
Inv. Cr.
Cost
Sec.179
Depr Basis
Curr. Depr
Beg A1Depr Sell Price
Date Sold
Meth - Conv- Life - ITC - Stat - New - Listed Depr. Yr.
Net Book Value
Salvage Value
Bus. Percent
Curr. AFY Depr.
End AlDepr Gain/Loss
ASSET A!C#: A185 - FURNITURE & FIXTURES
11/12/96
EXEC. CHAIR i£ 6 CONFERENCE CHAIRS
0.D0
2,782.10
0.00
2,782.10
0,00
2,782.10
M'200 HY 7.00 Omit Active New
Not Listed
9
0.00
0.00
100.00%
0.00
2,782.10 .
01/14/97
SAMSUNG TV
0.00
257.80
0.00
257.80
0.00
257.80
M•200 HY 7.00 Omit Active New
Not Listed
9
0•00
0.00
100.00%
0.D0
257.80
01/21/97
0.00
701,94
0.00
701.94
0.00
701.94
M•200 HY 7.00 Omit Active New
Not Listed
9
0.00
0.00
100.00%
0.D0
701.94
03/24/97
PB MXX COMPUTER
0.00
1,165.02
0.00
1,165.02
0.00
1,165.02
M'200 HY 5.00 Omit AcCrve New
Not Listed
9
0.00
0.00
100.GO%
0.00
1,165.02
03/31/97
TOMBOY SHELVING
0.00
224.40
0.00
224.40
0.00
224.40
M-200 HY 7.00 Omit Active New
Not Listed
9
0.00
0.00
100.00%
0.00
224.40
06/02/97
HP 694C INK JET PRINTER
0.00
343.02
343,02
0.00
0.00
343.02
MA200 MQ 5.00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
343.02
D6/20/97
COMPUTER -CD ROM/TOUCHPAD
0.00
194.15
194.15
0.00
0.00
194.15
MA200 MO 5,00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
194.15
36/20/97
SOFTWARE -WINDOWS 95/WORDPERFET
0.00
226.52
226.52
0.00
0.00
226.52
MA200 MQ 5.00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
226.52
)7/08/97
REFRIGERATOR
0.00
452.00
452.00
0.00
0.00
452.00
MA200 MQ 5.00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
452.00
)8/18/97
SOFTWARE-AVANTECH
0.00
3,450.00
3,450.00
0.00
0.00
3,450.00
MA200 MQ 5.00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
3,450.00
)9/17/97
APC BK400 BACKUP POWER SUR
0.00
183.38
183.38
0.00
0.00
183.38
MA200 MQ 5.00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
183.38
19/26/97
MODEM-33.61NTRNL
0.00
232.50
232.50
0.00
0.00
232.50
MA200 MQ 5,00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
232.50
0/24/97
2X COMPUSA PENTIUM 200
0.00
2,398.94
2,398.94
0.00
0.00
2,398.94
MA200 MQ 5.00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
2,398.94
4/17197
DIGITAL SCALE 400#
0.00
161.76
161.76
0,00
0.00
161-76
MA200 MQ 7.00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
161.76
2/01/97
PRINTER-LEXMARK 2390
0.00
377.44
377.44
0.00
0.00
377.44
MA200 MQ 5.00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
377.44
0/24/98
COMPUTER -PS 7800
0.00
1,326.80
0.00
1.326.80
0.00
1,326.80
M'200 MQ 5.00 Omit Active New
Not Listed
7
0.00
0.00
100,00%
0.00
1,326.80
1/11/98
CD ROM
0.00
248.10
0.00
248.10
0.00
248.10
M'200 MQ 5.00 Omit Active New
Not Listed
7
0.00
0.00
100.00%
0.00
248,10
1/11/98
MONITOR
0.00
161.80
0.00
161.80
0.00
161.80
M'200 MQ 5.00 Omit Active New
Not Listed
7
0.00
0,00
100.00%
0.00
161.80
1/11/98
PRINTER
0.00
161.80
0.00
161.80
0.00
161.80
M•200 MQ 5.00 Omit Active New
Not Listed
7
0.00
0.00
100.00%
0.00
161.80
1/04/99
FLOW SOFTWARE
0.00
6,650.00
0.00
6,650.00
0.00
6,650.00
M'200 MQ 5.00 Omit Active New
Not Listed
7
0.00
0.00
100.00%
0.00
6,650.00
/0"9
ETHERNET WIRING
0.00
1,800.23
0.00
1,800.23
0.00
1,800.23
M-200 MQ 5.00 Omit Active New
Not Listed
7
0.00
0,00
100.00%
0.00
1,800.23
/12/99
19- MONITOR
0.00
409,93
0.00
409.93
0.00
409.93
M'200 MQ 5.00 Omit Active New
Not Listed
7
0,00
0.00
100.00%
0.00
409.93
115199
19- MONITOR
0.00
409.93
0.00
409.93
0.00
409.93
M-200 MQ 5.00 Omit Active New
Not Listed
7
0.00
0.00
100.00%
0.00
409.93
23199
4X 4MBX9 SIMM
0.00
125.14
0.00
125.14
7.21
117.93
M'200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
125.14
23199
7X 4MBX32 SIMM
0.00
521.04
0.00
521.04
30.01
491.03
M'2D0 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
521.04
20/99
HP NETSERVER #1
0.00
4,453.09
0.00
4,453.09
256.50
4,196.59
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
4,453.09
Asset Depreciation Report - Sorted by ASSET A/C#
Page: 5
Company: MODULE TRUCK SYSTEMS, INC.
Year End:
03/31/05
Date: 05/17/04
Method:
1 - FEDERAL
File: G:IAKDATA041M221
Time: 10.07:05
Date Acq
Description
Inv. Cr.
Cost
Sec.179
Depr Basis
Curr. Depr
Beg A/Depr Sell Price
Date Sold Meth - Conv - Ufa - ITC - Stat - New - Listed
Depr. Yr.
Net Book Value
Salvage Value
Bus. Percent
Curr. AFY Depr.
End AMepr Gain/Loss
ASSET A/C#: A185 - FURNITURE & FIXTURES
05/20/99
HP NETSERVER #2
0.00
2,768.07
0.00
2,766.07
159.44
2,608.63
W200 F(Y 5.00 Omit Active New Not Listed
6
0.00
0.00
100,00%
0.00
2,768.07
05/20/99
ASCEND PIPELINE 50 ROUTER
0.00
646.17
0:00
646.17
37.22
608.95
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100,00%
0.00
646.17
05/20/99
3 COM SUPERSTACK II DUAL SPEED HUB
0.00
969.80
0.00
969.80
55.86
913.94
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
969.80
05/20/99
2X HP JETDIRECT 50OX PRINTER PORT
0.00
839.27
0.00
839.27
48.34
790.93
M-200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
839.27
05/20/99
4 X 3 COM FAST ETHERLINK XL 10/100
0.00
384.04
0.00
384.04
22-12
361.92
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
384.04
05/20/99
8X 3 COM ETHERLINK III 10BT
0.00
768.07
0.00
768.07
44.24
723.83
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
768.07
05/20/99
18X PANDUIT FACEPLATE
0.00
291.26
0.00
291.26
16.78
274.48
M'200 HY 5.00 Omit Active New Not Listed
6
0.00,
0.00
100.00%
0.00
291.26
05/20/99
MS BACKOFFICE
0.00
1,969.80
0.00
1,969.80
113.46
1,856.34
M`200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
1,969.80
05/20/99
WINDOWS NT
0.00
1,415.33
0.00
1,415.33
81.52
1,333.81
M•200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
1,415.33
D5/20/99
SEAGATE BACKUP EXECUTIVE
0.00
538.30
0.00
538.30
31.01
507.29
M`200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100,00%
0.00
538.30
)5/20199
7X, MS WINDOWS 95
0.00
746.95
0.00
746,95
43.02
703.93
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
746.95
)5(20/99
NETWORK INSTALLATION
0.00
4,240.69
0,00
4,240,69
244.26
3,996.43
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
4,240.69
)5/20/99
0.00
2,893.28
0.00
2,893.28
166.65
2,726.63
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
2,893.28
15/20/99
0.00
1,599.65
0.00
1,599.S5
92.14
1,507.51
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
1,599.65
15/20/99
0.00
658.05
0.00
658.05
37.90
620.15
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
658.05
5120/99
0.00
58.85
0.00
58.85
3.39
55.46
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
58.85
5120199
0.00
2,771.30
0.00
2,771.30
159.63
2,611.67
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
2.771.30
5120190
0.00
422,65
0.00
422.65
24.34
398.31
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
422.65
3120199
0.00
2,240.75
0.00
2,240.75
129.07
2,111.68
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
2,240.75
i/20/99
FLOW SOFTWARE .
0.00
19,503.78
0.00
19,503.78
1,123.42
18,380.36
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
19,503.78
;/20/99
DSI 20 USER DATABASE ENGINE
0.00
4,871.25
0.00
4,871.25
280.58
4,590.67
W200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
1D0.00%
0.00
4,871.25
(31199
3 COM 4 PORT SWITCH
0.00
533.97
0.00
533.97
30.76
503.21
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
533.97
131199
HP JETDIRECT 50OX
0.00
419.63
0.00
419,63
24.17
395.46
M'200 HY 5.D0 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
419.63
01/99
WHATS UP 2.51
0.00
242.72
0.00
242.72
13.98
228.74
M•200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
242.72
)3/99
2X 4MBX32 SIMM
0.00
127.29
0.00
127.29
7.33
119.96
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0.00
127.29
15/99
HARDWARE INSTALLATION
0.00
4,376.27
0.00
4,376.27
252.07
4.124.20
M'200 HY 5.00 Omit Active New Not Listed
6
0.00
0.00
100.00%
0,00
4,376.27
Asset Depreciation Report - Sorted by ASSET A/C#
Page: 6
Company. MODULE TRUCK SYSTEMS, INC.
Year End:
03/31/05
Date: 05/17/04
Method: 1 - FEDERAL
File: GAAKDATA041M221
Time: 10:07:06
Date Acq
Description
Inv. Cr.
Cost
Sea 179
Depr Basis
Curr. Depr
Beg A/Depr Sell Price
Date Sold
Meth - Conv - Life - ITC - Stat - New - Listed Depr. Yr.
Net Book Value
Salvage Value
Bus. Percent
Curr. AFY Depr.
End A/Depr Gain/Loss
ASSET A/C#-. A185 - FURNITURE & FIXTURES
07/01/99
3 WINDOWS NT WORKSTATION
0.00
925.46
0.00
925.46
53.31
872.15
M"200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0,00
925.46 -
10/22/99
E MACHINE 400i3
0.00
512.90
0.00
512.90
29.54
483.36
M1200 HY 5.00 Omit • Active New
Not Listed
6
0.00
0.00
100.00%
0.00
512.90
11/05/99
UPGRADE BACKUP EXEC
0.00
296.66
0.00
296.66
17.09
279.57
M•200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
296.66
11118/99
CADKEY WIREFRAME SOFTWARE
0.00
520.00
0.00
520.00
29.95
490.05
M•200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
520,00
11/26/99
HP 6553 COMPUTER & DESKJET
0.00
860.84
0.00
860.84
49.58
811.26
M'200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
860.84
12/22/99
HP 1100XI PRINTER
0.00
385.57
0.00
365.57
21.06
344.51
M'200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
365,57
01/31/00
BROTHER DP525CJ WORD PROCESSOR
0.00
207.51
0.00
207.51
11.95
195.56
M-200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
207.51
02/14/00
HP DESKJET 970CSE
0.00
431.49
0.00
431.49
24.85
406.64
M'200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
431.49
02/14/00
HP OFFICEJETT65
0.00
539.36
0.00
539.36
31.07
508.29
M•200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
539.36
05/11/00
COREL DRAW 9.0
0.00
199.85
0.00
199.85
23.03
165.31
M"200 HY 5.00 Omit Active New
Not Listed
5
11.51
0.00
100.00%
0.00
188.34
36/19/00
COMPAQ PRESARIO 5868
0.00
1,549,09
0.00
1,549.09
178.45
1,281.41
M'200 HY 5.00 Omit Active New
Not Listed
5
89.23
0.00
100,00%
0.00
1,459.86
)7/12/00
2 HON MOBILE TUB FILES
0.00
215.74
0.00
215.74
19.25
148.35
MA200 HY 7.00 Omit Active New
Not Listed
5
48.14
0.00
100.00%
0.00
167.60
)9/01/00
FLOW SOFTWARE
0.00
10,254.08
0.00
10,264.08
1,182.43
8,490,44
M'200 HY 5.00 Omit Active New
Not Listed
5
591.21
0.00
100.00%
0.00
9,672.87
)9/21/00
EXEC. CHAIR
0.00
270.76
0,00
270.76
24.17
186.18
MA200 HY 7.00 Omit Active New
Not Listed
5
60.41
0.00
100.00%
0,00
210.35
;9/21/00
EXEC CHAIR
0.00
270.76
0.00
270.76
24.17
186.18
MA200 HY 7.00 Omit Active New
Not Listed
5
60.41
0.00
100.00%
0.00
210.35
0/09100
EXEC. CHAIR
0,00
214.68
0.00
214.68
19.16
147.62
MA200 HY 7.00 Omit Active New
Not Listed
5
47.90
0.00
100.00%
0.00
166.78
0116100
HP EVECTRA COMPUTER ( PARTS)
0.00
991,37
0.00
991.37
114.21
820.06
M-200 HY 5.00 Omit Active New
Not Listed
5
57.10
0.00
100.00%
0.00
934.27
1/03/00
JETDIRECT 170X-GA.
0.00
188.78
0.00
188.78
21.75
156.16
M•200 HY 5.00 Omit Active New
Not Listed
5
10.87
0.00
100.00%
0.00
177.91
1109/00
15" PROVIEW MONITOR
0.00
151.01
0.00
151.01
17.39
124.92
M-200 HY 5.00 Omit Active New
Not Listed
5
8.70
0.00
100.00%
0,00
142.31
/15/00
MAXTOR 15 GB DRIVE
0.00
160.73
0,00
160.73
18.51
132.96
M'200 HY 5.00 Omit Active New
Not Listed
5
9.26
0.00
100.00%
0.00
151.47
104100
HP C566 EVECTRA COMPUTER (REX)
0.00
915.86
0.00
915.86
105.51
757.60
M-200 HY 5.00 Omit Active New
Not Listed
5
52.75
0.00
100.00%
0.00
863.11
f05/00
HP EVECTRA C700 COMPUTER (RON)
0.00
754.05
0.00
754.05
86.87
623.75
M-200 HY 5.00 Omit Active New
Not Listed
5
43.43
0.00
100.00%
0.00
710.62
'05100
HP EVECTRA C700 COMPUTER (WILLIE)
0.00
754.04
0.00
754.04
86.87
623.74
M'200 HY 5.00 Omit Active New
Not Listed
5
43.43
0.00
100.00%
0.00
710.61
14101
NORTON ANTIVIRUS 7.5
0.00
819,11
0.00
819.11
94.36
677,57
M-200 HY 5.00 Omit Active New
Not Listed
5
47.18
0.00
100,00%
0.00
771.93
23/01
NORTON SOLUTIONS
0.00
440.13
0.00
440.13
50.71
364.07
M'200 HY 5.00 Omit Active New
Not Listed
5
25.35
0.00
100.00%
0.00
414.78
)5/01
HP XT858 PAVILION COMPUTER
0.00
1,294.48
0.00
1,294.48
149.12
921.67
MA200 HY 5.00 Omit Active New
Not Listed
4
223.69
0.00
100.00%
0.00
1,070.79
Asset Depreciation Report - Sorted by ASSET A/C#
Page: 7
Company MODULE TRUCK SYSTEMS, INC.
Year End: 03/31/05
Date: 05/17/04
Method: 1 - FEDERAL
File: G:IAKDATA041M221
Time: 10:07:07
Date Acq
Description
Inv. Cr.
Cost
Sec 179
Depr Basis
Curr, Depr
Beg A/Depr Sell Price
Date Sold
Meth - Conv - Life - ITC - Stat - New - Listed Depr, Yr.
Net Book Value Salvage Value
Bus. Percent
Curr. AFY Depr.
End A/Depr Gain/Loss
ASSET A/C#: Ai85 - FURNITURE & FIXTURES
10/26/01
0.00
171.17
0.00
171.17
21.39
96.31
MA200 HY 7.00 Omit Active New
Not Listed
4
53.47
0.00
100.00%
0.00
117.70
10/26/01
0.00
53.48
0.00
53.48
4,68
37.11
MA200 HY 7.00 Omit Active New
Not Listed
4
11.69
0,00
100.00%
0.00
41.79
10/26/01
0.00
149,78
0.00
149.78
17.25
106.65
MA200 HY 5.00 Omit Active New
Not Listed
4
25.88
0.00
100.00%
0.00
123.90
10/26/01
0.00
149.78
0.00
149.78
17.25
106,65
MA200 HY 5.00 Omit Active New
Not Listed
4
25.88
0.00
100.00°%
0.00
123.90
10/26/01
0.00
106.97
0.00
106.97
13.37
60.19
MA200 HY 7.00 Omit Active New
Not Listed
4
33.41
0.00
100.00%
0.00
73.56
10/31/01
0.00
759.70
0.00
759.70
87,52
540.90
MA200 HY 5.00 Omit Active New
Not Listed
4
131.28
0.00
100.00%
0.00
628.42
10/31/01
A
0.00
80.25
0.00
80.25
10.03
45.15
MA200 HY 7.00 Omit Active New
Not Listed
4
25.07
0.00
100.00°%
0.00
55.18
]2/26/02
0.00
345.44
0.00
345.44
43.16
194.38
MA200 HY 7.00 Omit Active New
Not Listed
4
107.90
0.00
100.00%
0.00
237.54
W05102
SOFTVIEW SINGLE USER LIC.
0.00
250.00
0.00
250,00
27.30
18175
MA200 MQ 5.00 Omit Active New
Not Listed
3
40.95
0.00
100.00%
0.00
209.05
)4/30/02
2 FUJITSU HARD DRIVES
0.00
537.22
0.00
537.22
58.66
390.56
MA200 MQ 5.00 Omit Active New
Not Listed
3
88.00
0.00
100.00%
0.00
449,22
)4130/02
HP. DDS4 BACKUP TAPE DRIVE
0.00
1,509.17
0.00
1,509.17
164.80
1,097.17
MA200 MQ 5.00 Omit Active New
Not Listed
3
247.20
0.00
100.00%
0.00
1,261.97
16/25/02
PALM PILOT
0.00
161.80
0,00
161.80
17.67
117.63
MA200 MQ 5.00 Omit Active New
Not Listed
3
26.50
0.00
100.00%
0.00
135 30
17/09/02
CATIPALM ENGINE SOFTWARE
0.00
582.42
0.00
582,42
73.38
398.96
MA200 MQ 5.00 Omit Active New
Not Listed
3
110.08
0.00
100.00%
0.00
472.34
9/24102
2 MERLIN 10 BUTTON PHONES
0.00
254.59
0.00
254.59
29.87
150.03
MA200 MQ 7.00 Omit Active New
Not Listed
3
74.69
0.00
100.00%
0.00
179.90
9/27/02
HOT/COLD WATER DISPENSER
0.00
172.59
0.00
172.59
20.25
101.70
MA200 MQ 7.00 Omit Active New
Not Listed
3
50.64
0.00
100.00%
0.00
121.95
2/06102
17" LCD DISPLAY - LOUISE
0.00
429.95
0,00
429.95
61.40
276.46
MA200 MQ 5.00 Omit Active New
Not Listed
3
92.09
0.00
100,00%
0.00
337.86
2131102
HP 1020XI FACSIMILE
0.00
140.67
0,00
140.67
20.09
90.45
MA200 MQ 5.00 Omit Active New
Not Listed
3
30.13
0.00
100.00%
0.00
110.54
3/19,'03
LUBBOCK-1710 VPN ROUTER
0.00
1,724.92 ,�`�
1,724.92
0.00
0.00
1,724.92
MA200 HY 5.00 Omit Active New
Not Listed
2
0.00
0.00
100,00%
0.00
1,724.92
3H0103
LATHAM TIME CLOCK
0.00
385.70
365.70
0.00
0.00
365.70
MA200 HY 7.00 Omit Active New
Not Listed
2
0.00
0.00
100.00%
0.00
365.70
708/03
0.00
1,604.24 ,
1,F04.24
0.00
0.00
1,604,24
MA200 HY 5.00 Omit Active New
Not Listed
2
0.00
0.00
100.00°%
0.00
1,604.24
111103
LEXMARK 2490 PRINTER
0.00
473.21 ^3i
473.21
0.00
0.00
473.21
MA200 HY 5.00 Omit Active New
Not Listed
2
0.00
0.00
100.00%
0.00
473.21
113/03
ANSWERING MACHINE
0.00
210.33
210.33
0.00
0.00
210.33
MA200 HY 7.00 Omit Active New
Not Listed
2
0.00
0.00
100.00%
0.00
210.33
'18/03
HP LJ1300 LASERJET
0.00
407.37 . < <
407.37
0.00
0.00
407.37
MA200 HY 5.00 Omit Active New
Not Listed
2
0.00
0.00
100,00%
0.00
407.37
3043
LUBBOCK-3 SHELF RACK
0.00
1,430.54
1,430.54
0.00
0.00
1,430.54
MA200 HY 7.00 Omit Active New
Not Listed
2
0.00
0.00
100.00%
0.00
1,430.54
73/04
HP D530 COMPUTER
0.00
1,065.81
1,065.81
0.00
0.00
1,065.81
MA200 HY 5.00 Omit Active New
Not Listed
2
0.00
0.00
100.00°%
0.00
1,065.81
)3/04
HP 0530 COMPUTER
0.00
1,065.81
1,065.81
0.00
0.00
1,065.81
MA200 HY 5,00 Omit Active New
Not Listed
2
0.00
0.00
100.00°%
0.00
1,065.81
Asset Depreciation Report - Sorted by ASSET Alter
Page: 8
Company: MODULE TRUCK SYSTEMS, INC.
Year End: 03/31/05
Date: 05/17/04
Method: 1 - FEDERAL
File: GAAKDATA04XM221
Time: 10:07:07
Date Acq Description
Inv. Cr.
Cost
Sec. 179
Depr Basis
Curr. Depr
Beg A/Depr Sell Price
Date Sold Meth - Conv • Life - ITC - Stat - New - Listed Depr. Yr.
Not Book Value
Salvage Value
Bus. Percent Curr. AFY Depr.
End A/Depr Gain/Loss
ASSET AIC#: A185 - FURNITURE & FD(TURES
02/03/04 VE 175B MONITOR
0.00
538.29
538.29
0.00
0.00
538.29
MA200 HY 5.00 Omit Active New
Not Listed
2
0•00
0.00
100.00%
0.00
538.29
02105/04 LASERJET 130ON
0.00
393.55
393.55
0.00
0.00
393.55
MA200 HY 5.00 Omit Active New
Not Listed
2
0•00
0.00
100.00%
0.00
393,55
02105/04 OFFICE JET 6110XI
0.00
289.90
289.90
0.00
0.00
289.90
MA200 HY 5.00 Omit Active New
Not Listed
2
0.00
0.00
100.00%
0.00
289.90
02/26/04 HP 0530 COMPUTER
0.00
2,188.78
2,188.78
0.00
0.00
2,188.78
MA200 HY 5.00 Omit Active New
Not Listed
2
0.00
0.00
100.00%
0.00
2,188.78
03/25/04
0.00
393.55
393.55
0.00
0.00
393.55
MA200 HY 5.00 Omit Active New
Not Listed
2
0.00
0.00
100.00%
0.00
393.55
Totals for ASSET A/C#: A185 (123 assets)
286,856.24 20,171.71
266,684.53
6,708.85
277,541.96 0.00
2,605.43 0.00
0,00
284,250.81 0.00
Summary For: Al85
Cost
Section 179 +
Accum. Depr.
. Total
Beginning Balances (123 assets)
286,856.24
20,171.71
257,370.25
277.541.96
+Additions (A) 10 assets)
0.00 Curr. Depr.
0.00
6,708.85
6,708.85
Subtotals
286,856.24
20,171.71
264,079.10
284,250.81
- Disposals (D) and Trades m (0 assets)
0.00
0.00
0.00
0.00
Ending Balances (123 assets)
286,856.24
20,171.71
264,079.10
284,250.81
%SSET A/C#: Al87 - VEHICLES
0/15/96
JS
M'200 HY 5.00 Omit
Active New
Not Listed
0115/96
85 FORD F150 #3
M•200 HY 5.00 Omit
Active New
Not Listed
0115196
M'200 HY 5.00 Omit
Active New
Not Listed
0/15/98
M•200 HY 5.00 Omit
Active New
Not Listed
0/15/96
89 FORD F150 #30
M•200 HY 5.00 Omit
Active New
Not Listed
0115196
90 FORD SUPER DUTY #8
M'200 HY 5.00 Omit
Active New
Not Listed
)/15/96
90 FORD SUPER DUTY 97
M•200 HY 5.00 Omit
Active New
Not Listed
)/15/96
M•200 HY 5,00 Omit
Active New
Not Listed
1115/96
91 FORD SUPER DUTY #9
M•200 HY 5.00 Omit
Active New
Not Listed
/15/96
95 FORD F150 XLT #295
M•200 HY 5.00 Omit
Active New
Not Listed
115/96
-86 F"a Y&+ 9S
M•200 HY 5.00 Omit
Active New
Not Listed
'10/97
M-200 HY 5.00 Omit
Active New
Not Listed
10/98
49t8'F$R8-Ft1-
M-200 MQ 5.00 Omit
Active New
Other List
31/00
M-200 HY 7.00 Omit
Active New
Not Listed
12100
HAWKINS GMC CHASIS CONY. TO BED
M-200 HY 5.00 Omit
Active New
Not Listed
.9/02
2002 CHEVROLET C-15
2GCEC19TX21226313
MA200 MQ 5,00 Omit
Active New
Not Listed
0.00
1,500.00
0.00
1,500.00
0.00
1,500.00
9
0.00
0.00
100.00%
0.00
1,500-00
0.00
1,000.00
0.00
1,000.00
0.00
1,000.00
9
0.00
0.00
100.00%
0.00
1.000.00
0.00
3,500.00
0.00
3,500,00
0.00
3,.500.00
9
0.00
0.00
100.00%
0.00
3,500.00
0.00
1,500.00
0.00
1,500.00
0.00
1,50000
9
0.00
0.00
100.00%
0.00
1,500.00
0.00
1,250,00
0.00
1,250.00
0.00
1,250.00
9
0.00
0.00
100.00%
0.00
1,250.00
0.00
2,750.00
0.00
2,750.00
0.00
2,750.00
9
0.00
0.00
100.00%
0.00
2,750.00
0.00
2,750.00
0.00
2,750.00
0.00
2,750.00
9
0.00
0.00
100,00%
0.00
2,750.00
0.00
2,750.00
0.00
2,750.00
0.00
2,750.00
9
0.00
0.00
100.00%
0.00
2,750.00
0.00
3,500.00
0.00
3,500.00
0.00
3,600.00
9
0.00
0.00
100.00%
0.00
3,500.00
0.00
10,500.00
0.00
10,500.00
0.00
10,500.00
9
0.00
0.00
100.00%
0.D0
10,500.00
0.00
9,000.00
0.00
9,000.00
0.00
9,000.00
9
0.00
0.00
100.00%
0.00
9,000.00
0.00
2,200.00
0.00
2,200.00
0.00
2,200.00
9
0.00
0.00
100.00%
0.00
2,200.00
0.00
21,261.28
0.00
21,261.28
0.00
21,261.28
8
0.00
0,00
100.00%
0.00
21,261.28
0.00
995.00
0.00
995.00
88.80
772.99
6
133.21
0.00
100.00%
0.00
861,79
0.00
11,098.12
0.00
11,098.12
1,278.51
9,180.36
5
839.25
0.00
100,00%
0.00
10,458.87
0,00
26,903.83
0.00
26,903.83
3,841.87
17,299.16
3
5,762.80
0.00
100.00%
0.00
21,141.03
Asset Depreciation Report - Sorted by ASSET A/C#
Company: MODULE TRUCK SYSTEMS, INC. Year End: 03/31/05
Method: 1 - FEDERAL File: G:IAKDATA041M221
Page: 9
Date: 05/17/04
Time: 10:07:08
Date Acq Description Inv. Cr. Cost Sec. 179 Depr Basis Curr. Depr Beg A/Dep► Sell Price
Date Sold Meth - Conv - Life - ITC - Stat - New - Listed Depr. Yr. Net Book Value Salvage Value Bus. Percent Curt. AFY Depr. End A/Depr Gain/Loss
ASSET A/C#: A187 - VEHICLES
10/29/02 2002 CHEVROLET C-15
2GCEC19T721398959
MA200 MQ 5.00 Omit Active New Not Listed
Totals for ASSET A/C#: Al87 (17 assets)
0.00 29.621.05 0.00 29,621.05
3 6,344.83 0.00 100.00%
132,079.28 0.00 132,079.28
12,880.09 0.00
4,229.89 19,046.33
0,00 23,276.22
9,439.07 109,760.12 O.0
0.00 119,199.19 O.0
Summary For: A187
Cost
Section 179 +
Accum. Depr. a
Total
Beginning Balances (17 assets)
132,079.28
b.00
109,760.12
109,760.12
+Additions (A) (0 assets)
0,00 Curr. Depr.
0.00
9,439.07
9,439.07
Subtotals
132,079.28
0.00
119,199.19
119,199.19
- Disposals (D) and Trades (T) (0 assets)
0.00
0.00
0.00
0.00
Ending Balances (17 assets)
132,079.28
0.00
119,199.19
119,199.19
Grand totals for all accounts: (188 assets) 859,406.89 34,976.50 824.430.39 42,432.72 620,509.86 0.0C
198,464.31 0.00 0.00 662,942.58 0.0C
Summary For Grand Totals Cost Section 179 + Accum. Depr. - Total
Beginning Balances (188 assets) 859,406.89 34,976.50 585,533.36 620,509.86
+ Additions (A) (0 assets) 0.00 Curr. Depr. 0.00 42,432.72 42,432.72
Subtotals 859,406.89 34,976.50 627,966.08 662,942.58
- Disposals (D) and Trades IT) (0 assets) 0.00 0.00 0.00 0.00
Ending Balances (188 active assets) 859,406.89 34,976.50 627,966.08 662,942.58
Current Ending
Cost Depreciation Accum. Depr.
Depreciable assets: (187 assets, 0 disposed) 858,786.89 42,391.39 662,794.48
Amortizable assets: (1 assets, 0 disposed) 620.00 41.33 148.10
:odes that may appear next to the date acquired include: A - Addition, D - Disposal, T - Traded, I - Inactive
kdditional Summary Statistics for Assets:
Current Year Prior Year Depreciable Beginning Current Ending Net
Cost Section 179 Section 179 Basis Accum. Depr. Depreciation Accum. Depr. Book Value
;rand Totals for all assets 859,406.89 0.00 34,976.50 824,430.39 620,509.86 42,432.72 662,942.58 196,464.31
Less: inactive Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Disposed Assets
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Traded Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
let Totals (Active Assets) 859,406.89 0.00 34,976.50 824,430.39 620,509.86 42,432.72 662,942.58 196,464.31
Total Additional First Year Depreciation Taken at 30% Rate: 0,00
Total Additional First Year Depreciation Taken at 50% Ra:e: 0.00
Total Additiona; First Year Depreciation Taken: 0.00
Page 1 of 2
Lubbock Central Appraisal District €..
-'^ 2004 Current Values
Ownership is current as of 08/27/04
Links Property Detail Sheet ( R116059 )
• Home History Datashee ^ View Sketch > View Images
JU
• General Information Owner Information
• News Owner ID: 0033654
Owner Name: EAGLE PICHER IND INC
• FAQ Owner Address: ATTN RON WRIGHT PO BOX 779
• Taxing Units CINCINNATI,OH 45201-0779
Property Address: 1802 E 50TH ST
• Taxpayer Info LUBBOCK, 79404
• Forms
• Credit Card Payments
Searches
Parcel Information
Legal Description:
BREEDLOVE TR A B & C
• Owner Search
Acreage:
• Address Search
Cross Reference:
R107400-00010-00000-000
Undivided Interest:
• QuickRef ID Search
Exemption Codes:
Property Data
Entity Codes.
GLB (Lubbock County)
CLB (City Of Lubbock)
• Detail Sheet
SLB (Lubbock ISD)
HSP (Lubb Cnty Hospital)
• History
WHIP (HI Plains Water)
• Sketch
Deed Type:
Warranty Deed
Deed Book:
9537
• Datasheet
Deed Page:
280
Map Page:
675
• Images
• Bills
Values Breakdown 2004 (Work In Progress)
Land HS:
$0 +
Land NHS:
$183,964 +
Improvement HS:
$0 +
Improvement NHS:
$2,046,400 +
Ag Market:
$0
Ag Use:
$0 +
Timber Market:
$0
Timber Use:
$0 +
Assessed:
$2,230,364 =
Improvements
ID Type
SPTB
Seg,,
Value
Imo1 I (Misc. Improvement)
F2 (F2 - Real Industrial)
1
$ 2,046,400
Imu2 I (Misc. Improvement)
F2 (F2 - Real Industrial)
1
$ 0
Imo I (Misc. Improvement)
F2 (F2 - Real Industrial)
3
$ 0
{moo I (Misc. Improvement)
F2 (F2 - Real Industrial)
3
$ 0
4
Land
http://www.lubbockcad.org/AppraisalIPublicAccessIPropertyDetail. aspx?PropertylD=7834... 4/8/2005
Page 2 of 2
ID Type SPTB Acre Market
Landl C (Commercial) F2 (F2 - Real Industrial) $ 91,982
Land 2 C (Commercial) F2 (F2 - Real Industrial) $ 91,982
http://www.lubbockcad.orglAppraisal/PublicAccess/PropertyDeta.il.aspx?PropertylD=7834... 4/8/2005