HomeMy WebLinkAboutResolution - 2005-R0227 - Tax Abatement Agreement - Bemove Ltd. And Module Truck Systems - 06_09_2005,qD05 - �ktA aI
Resolution No. 2005-
June 9, 2005
Item 20
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock a Tax Abatement Agreement
with BeMove, Ltd. and Module Truck Systems, Inc. and all related documents. Said
Agreement is attached hereto and incorporated in this Resolution as if fully set forth
herein and shall be included in the minutes of the Council.
Passed by the City Council this 9th day of J 52005.
/V(
ARC McbOUGAL, MAYOR
ATTEST:
Reb cca Garza, City Secretary
APPRO D AS CONTENT:
Rob Ali- n, for o
Business Development
APPROVED AS TO FORM:
Linda L. Chamales, Senior Attorney
Office Practice Section
LC: cityatt / Linda / Res -Tax Abatement-MTS
May 26, 2005
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
CONTRACT NO.
00006110
This Agreement made this 9th day of .Tune , 2005, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City"), BeMove, Ltd., a Texas limited partnership (hereinafter called
"BeMove") and Module Truck Systems, Inc. (hereinafter called "MTS");
WITNESSETH:
WHEREAS, BeMove, a partnership owned in part by MTS, is the owner of real
property located at 1802 E. 50`h 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 BeMove for a portion of the property and one of the facilities at 1802 E.
501h 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. 50`h 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 10`h day of December an
application for tax abatement for improvements to real property and tangible personal
property at 2008 and 2010 E. 50`h 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 Behove 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 BeMove 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 from 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 real property which
is described in Exhibit "B".
(b) All eligible new tangible personal property, owned by MTS, placed in or
upon the property set forth in Exhibit "B", except for equipment and
personal property owned by MTS prior to the date of the application
attached as Exhibit "D".
(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 BeMove will expend one hundred seventy-seven thousand dollars ($177,000)
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 five (5) 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 for 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 BeMove 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 I" day of January,
2005, and shall be completed within approximately nine (9) 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 BeMove 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 BeMove 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 BeMove 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 BeMove 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 BeMove 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 3190
Lubbock, TX 79452
BeMove, Ltd.
Douglas B. Allen
1802 E. 50`h 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 9th day of
TRUCK SYSTEMS, INC.
RUSSELL LINDSEY
PRESIDENT AND GM
B OVE, LTD
DOUGLAS IN.ALLEN
MANAGING DIRECTOR
Tax Abatement Agmt-MTS
May 23, 2005
June , 2005.
CITY OF
A MunA
GAL, MAYOR
ATTEST:
Reb ca Garza
City Secretary
Rob Allison
Director off
APPROVED AS TO FORM:
Linda L. Chamales,
Senior Attorney
Office Practice Section
AGREEMENT -MODULE TRUCK SYSTEMS, INC. PAGE 6
EXHIBIT "A"
LEASE AGREEMENT
(Multi -Tenant Property)
BETWEEN
BEMOVE, LTD.
(LANDLORD)
MODULE TRUCK SYSTEMS, INC.
(TENANT)
RELATING TO
1802 East 50th Street (portion)
Lubbock, Texas
(LEASED PREMISES)
C:%WRKWc1 USAO 04k—Lom¢•.vW
FUNDAMENTAL LEASE PROVISIONS
ARTICLE..........................................................I.....................
1.01. Fundamental Lease Provisions ................................................... 1
1.02. Definitions ................................................................ 1
ARTICLEII............................................................. ................ 2
2.01. Demise of Leased Premises. .............. I ... I ....... I .................. I ........ 2
ARTICLEIII.... ...... ............................................ I........................ 2
3.01. Primary Term................................................................. 2
ARTICLETV .............................................................................. 2
4.01. Basic Rent................................................................... 2
4.02. Additional Tenant Expense ...................................................... 2
4.03. Additional Rent............................................................... 2
4.04. Late Penalty ............................................ ................... 2
4.05. Place of Rent Payment.......................................................... 3
ARTICLEV................................................................................ 3
5.01. Use............................................................ 3
5.02. Tenant's Responsibility Regarding Hazardous Substances ........ I ..................... 3
ARTICLEVI............................................................................... 4
6.01. Taxes and Assessments......................................................... 4
6.02. Insurance.................................................................... 4
ARTICLEVII.............................................................................. 5
7.01. Maintenance................................................................. 5
7.02. Utility Services .... ..... ........................................ 5
7.03. Alterations, Additions and Improvements ......................................... 5
7.04. Equipment and Fixtures......................................................... 5
7.05. Signs ................... .................................................. 6
7.06. Condition of Property; Disclaimer of Warranties ....... ............................... 6
7.07. Destruction or Damage......................................................... 6
ARTICLEVIII........................ ..................................................... 6
9.01. Default by Landlord ........................................................... 6
8.02. Default by Tenant ............................................................. 6
8:03. Remedies of Landlord .......................................................... 7
8.04. Tenant's Personal Property; Contractual Security Interest .............................. 7
ARTICLE IX .................................... .....
............
...........................
9.01. Indemnity .... ...........................................................
9.02. Assignment and Subletting......................................................
9.03. Inspections . .......................................... ................
9.04. Condemnation . .... .................................................
9.05. Subordination of Lease; Estoppel Certificates .......................................
9.06. Surrender....................................................................
9.07. Holding Overby Tenant........................................................
9.08. Notices and Addresses..........................................................
9.09. Parties Bound................................................................
9.10. Applicable Law...............................................................
9.11. Legal Construction............................................................
9.12. Prior Agreements Superseded....................................................
9.13. Amendment.................................................................
9.14. Waiver of Default.............................................................
9.15. Attorney's Fees...............................................................
9.16. Force Ma}eure............................................... .......... I......
9.17. Time of the Essence............................................................
9.18. Exhibits.....................................................................
Exhibits "A" - "D" As Lettered
PART I.
FUNDAMENTAL LEASE PROVISIONS
EXECUTION DATE: November a4 , 2004
LANDLORD:
Name: BEMOVE, LTD., a Texas limited partnership
Address: 5219 City Bank Parkway, Lubbock, Texas 79407
TENANT:
Name: MODULE TRUCK SYSTEMS, INC.
Address: P. O. Box 1299, Wolfforth, Texas 79382
LEASED PREMISES: A portion of the real property described in Exhibit "A" attached
hereto and made a part hereof for all purposes, as further outlined on
the site plan of such property attached hereto as Exhibit "B" and made
a part hereof for all purposes, together with all improvements thereto.
TERM:
Commencement Date: December 1, 2004
Primary Term: One Hundred Eighty (180) full months from the Commencement
Date, subject to adjustment as provided in Paragraph 3.01.
USE: Any lawful industrial use.
PART II.
LEASE AGREEMENT
THIS AGREEMENT is made and entered into by and between Landlord and Tenant, as of the Execution Date shown
in the Fundamental Lease Provisions.
ARTICLE I
1.01. Fundamental Lease Provisions. Certain fundamental provisions of this Lease are set out on page (i) of this
instrument, said page being identified "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 provision shall be construed to
incorporate all of the terms contained in that provision. In the event of any conflict between any Fundamental Lease Provision
and the balance of this Lease, the latter shall control.
1.02. Definitions When used in this Agreement, the terms listed below shall have the meanings indicated.
Additional terms are defined elsewhere in this instrument.
(a) "Commencement Date"-Thedate specified in the Fundamental Lease Provisions as the Commencement Date.
(b) "Force Maieure" - Strikes, riots, acts of God, shortages of labor or materials, war, governmental laws,
regulations or restrictions, or any other causes of any kind whatsoever which are beyond the reasonable control
of the parties hereto (but not including financial inability to perform).
Lease Agmemenl Page
(c) "Landlord's Qperating_Exnense" - All costs and expenses incurred and/or paid by Landlord under the
provisions ofSection 6,01 (Taxes and Assessments), Section 6.02 (insurance), and Section 7.01(b) (pertaining
to Common Area maintenance).
(d) "Lem Y r" - A period of twelve (12) consecutive months, commencing on the Commencement Date as to
the first Lease Year, and any anniversary thereof as to subsequent Lease Years.
(e) "Leased Premises" - That portion of the Project which is more particularly described in the Fundamental Lease
Provisions and shown on plat attached hereto as Exhibit "B".
(f) "Proiect' - That certain real property identiBed in Exhibit "A", including, but not limited to, all improvements
and structures located thereon and all rights, privileges, easements and appurtenances belonging or in any way
pertaining thereto.
(g) "TenanPs Prowrtionate Shore" - Forty percent (40%).
ARTICLE 11
2.o1. Demise of U iseed Premises, In consideration of the mutual covenants and agreements herein set forth, and
other good and valuable consideration, Landlord does hereby demise and lease to Tenant, and Tenant does hereby lease from
Landlord, effective as of the Execution Date shown in the Fundamental Lease Provisions, the Leased Premises; TO HAVE AND
TO HOLD the same for the term hereinafter specified and upon the terms and conditions hereinafter set forth.
ARTICLE III
3.01. Prima Tg" The primary term of this Lease shall be that term set out in the Fundamental Lease Provisions.
ARTICLE IV
4.01. Basic Rent. Tenant's obligation to pay rent under this Lease shall commence as of the Commencement Date.
All rent payable by Tenant pursuant to this Section 4.01 is sometimes referred to in this Lease as the "Basic Rent". Beginning
as of the Commencement Date, Tenantshall pay Basic Rent in the amount of $91,320.00 per Lease Year, payable in twelve (12)
equal monthly installments ofS7,610.00 each on or before the first day of each calendar month during such Lease Year. The
Amount of each monthly installment of Basic Rent shall be adjusted effective as of the first day ofthe fourth (4th) Lease Year
and as of the first day of each third (3rd) Lease Year thereafter to equal the product of (i) forty percent (40%), multiplied by
(ii) the then -current monthly installmentofprincipal and interest payable by Landlord on that certain loan in the original principal
amount of$2,19 000.00 from PEOPLES BANK to Landlord, such loan being secured by a Deed of Trust and other liens against
and security interests in the Project. Basic Rent, as so adjusted, shall continue to be payable in twelve (12) equal monthly
installments during each Lease Year, with an installment being due on or before the first day of each and every calendar month
during the applicable Lease Year. All Basic Rent shall be paid by Tenant to Landlord without demand, deduction or offset of
any kind whatsoever.
4.02. Additional Tenant Expense In addition to Basic Rent, Tenant shall pay to Landlord an amount equal to
Tenant's Proportionate Share of Landlord's Operating Pacpense. Prior to the Commencement Date and to January I of each
succeeding calendar year throughout the term of this Lease, Landlord may estimate the amount of Landl ord's Operating Expense
which Landlord anticipates will be incurred during the following calendar year. In such case, the amount ofTenanes monthly
payment shall be an amount equal to the quotient of Tenant's Proportionate Share of Landlord's Operating Expense (as estimated
by Landlord) divided by twelve (12), and shall be payable on the first day of each calendar month throughout each calendar year,
at the same time as, but in addition to, Tenartfs.payment of Basic Rent. Tenant acknowledges that the amount of such installment
is an estimate and is not fixed and may change from year to year in accordance with Landlord's estimates of Landlord's Operating
Expense. Within ninety(90) days following the end ofeaeh calendar year, Landlord shall furnish to Tenant a written statement
showing the actual Landlord's Operating Expense for the preceding calendar year, and Tenant's Proportionate Share of such
expense. In the event the total amount of monthly installments of Landlord's Operating Expense paid by Tenant to Landlord
during the preceding calendar year shall be less than Tenant's Proportionate Share of the actual Landlord's Operating Expense,
Tenant shall 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 Tenant's Proportionate Share of the actual Landlord's 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 of this Lease shall be deemed to constitute rent- If such amounts are not paid at the time provided in this Lease,
they shall nevertheless be collectibie as rent with the next installment of Basic Rent thereafter falling due, but nothing herein
contained shall be deemed to suspend or delay the payment of any amount of money or charge at the time the same becomes due
and payable hereunder or to limit any other remedy of Landlord. All amounts of rent payable in a given month shall be deemed
to comprise a single rental obligation of Tenant to Landlord.
4.04. Late Penaity. If Tenant faits to pay any rent within ten (10) days following the date when the same is due and
payable, Tenant acknowledges that the Tate 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 due, Tenant shall immediately pay to Landlord,
Lars. & Ag Winent
Page 2
in addition to all other rent due, an amount equal to five percent (5%) of the delinquent rent plus interest on the delinquent rent
at the lesser of (i) I M per amtum, and (it) the maximum legal rate from the date due until paid. Should Tenant pay said late
charge but fail. to pay contemporaneously therewith all unpaid amounts of rent, Landlord's acceptance of the late charge shall
not constitute a waiver of Tenant's default with respect to Tenant'snonpayment of rent nor prevent Landlord from exercising all
other rights and remedies available to Landlord under this Lease or under law.
4.05. Place of R nt Payment 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. LL% Tenant shall use the Leased Premises only for 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 any machinery or equipment that is harmful to the Leased Premises or unreasonably disturbing
to other tenants in the Project;
(b) Do, or suffer to be done, any act, manner or thing objectionable to the fire insurance companies whereby the
fire insurance or any other insurance now in force or hereafter to be placed on the Leased Premises or any part
thereof, or on the Project of which the Leased Premises is a part 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 all other remedies of Landlord hereunder, Tenant agrees to
pay to Landlord as additional rent any and all increase or increases of premiums on insurance carried 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 comply with any andallrequirements of any of the constituted public authorities having jurisdiction and
with the terror of any State, Federal, or local statute, ordinance, or regulation applicable to Tenant or its use
of the Leased_ Premises.
(w) To give Landlord prompt written, full, complete, and specific notice of any accident, fire or damage occurring
in, on or to the Leased Premises.
(x) To keep all garbage and refuse in secure containers and to prepare the same for collection in the manner and
at the times and places specified by regulations of thepublic authorities having jurisdiction.
(y) To keep the Leased Premises clean, orderly, sanitary and free 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 of contractors, subcontractors, sub -subcontractors, mechanic's, laborers, and materialmen and
all ather items of like character and to indemnify Landlord against all legal costs and charges, bond premiums
for release of liens, including all attorney's fees of Landlord incurred in and about the prosecution or defense
of any suit in discharging the Leased Premises and, alternatively, the Projector any part or portion thereof from
any liens, charges, judgments, or encumbrances caused or suffered to be caused, directly or indirectly, by
Tenant, and that. all the costs and charges above referred to shall be considered as sent 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 lawful conduct of Tenant's business. 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 Responsibility Reg. ra dfng Hazardous Substances
(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 petroleum products, and substances declared 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
Lenae Agreement _ Page 3
(ii) The use, generation, release, manufacture, refining, production, processing, storage, or
disposal of any Hazardous Substance on, under, or about the Leased Premises or Project, or
the transportation to or from the Leased Premises of any Hazardous Substance.
(c) Tenant shalt, at Tenant's own expense, comply with all laws, regulations. rules, decrees and administrative
orders regulating the use, generation, storage, transportation, or disposal of Hazardous Substances ("Laws").
Tenant shall, at Tenant's own expense, make.: all submissions to, provide all information required by, and
comply with all requirements of all governmental authorities (the "Authorities') under the Laws. Should any
Authority or any third party demand that a cleanup plan be prepared and that a cleanup be undertaken because
of any deposit, spill; discharge, or other release of Hazardous Substances that occurs during the term 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 Leased Premises and/or Common Area; then Tenant shall, atTenanes own expense, prepare
and submit the required plans and all related bonds and other financial assurances; and Tenant shall carry out
all such cleanup plans. Tenant shall promptly provide all information regarding the use, generation, storage,
transportation, or disposal of Hazardous Substances that is requested by Landlord. if Tenant fails to fulfill any
duty imposed under this subparagraph within a reasonable time, Landlord may do so; and in such case, Tenant
shall cooperate with Landlord in order to prepare all documents Landlord deems necessary or appropriate to
determine the applicability of'the Laws to the Leased Premises and Project and Tenants use thereof, and for
Compliance therewith, and Tenant shall execute all documents promptly upon Landlord's request. No such
action by Landlord and no attempt made by Landlord to mitigate damages under any Law shall constitute a
waiver of any of Tenant's obligations under this subparagraph. Tenant's obligations and liabilities under this
subparagraph shall survive the expiration or termination of this Lease.
(d). Tenant shall indemnify, defend, and hold harmless Landlord, the manager of the Project, and their respective
officers, directors, beneficiaries, shareholders, partners, agents, employees, heirs, successors and assigns from
all fines, suits, procedures claims, and actions of every kind, and aft costs associated therewith (including
attorneys` and consultants' fees) arising out of or in any way connected with any deposit, spill, discharge, or
other release of Hazardous Substances that occurs during the term 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 Leased
Premises and/or Common Area, or from Tenant's failure to provide all information, make all submissions, and
take all steps required by all Authorities under the Laws and all other environmental laws. Tena es obligations
and liabilities under, this subparagraph shall survive the expiration or termination of this Lease.
ARTICLE VI
6.01. Taxes and Assessments, Landlord shall pay all real estate taxes (both general and special), assessments and
other governmental impositions lawfully created and assessed against the Leased Premises during the term hereof; provided,
however, that Landlord shallhave no liability to Tenant for failure to pay such taxes, assessments and other impositions at any
time when Tenant is delinquent in payment of Tenant's Proportionate Share of Landlord's Operating Expense. The taxes,
assessments and impositions to which this Section 6.01 refers shall include, but not be limited to, any and all sales tax, gross
receipts tax, use tax; excise tax or other similar tax imposed or levied against rentals or any other charge or payment required
under this Lease to be made by which has been imposed or levied on or against the same by any governmental agency
having, or purporting to have, jurisdiction thereover, as well as any and all costs and expenses incurred and/or paid by Landlord
to any person in connection with Landlord's contest of any sums which Landlord is required to pay hereunder. Tenant shall pay
prior to delinquency all taxes and assessments imposed against all equipment, trade fixtures, furnishings and. other personal
property of Tenant in, on or about the Leased Premises.
6.02. fnsurance.
(a) Landlord agrees to maintain insurance covering the Project against loss or damage by fire and other casualties
included in the so-called "Extended Coverage Endorsement" in an amount not less than eighty percent (Mo)
of the full replacement cost of all improvements thereto, exclusive of foundations and footings. All suns due
and payable by Tenant under the provisions of this Section 6.02(a) shall be due and payable to Landlord upon
demand. Landlord, at Landlord's option, shall have the right to obtain business interruption insurance and/or
loss of rental value insurance, including extended 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, in Landlords 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
purposes of this Lease.
(b) Tenant, 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 commercially reasonable deductibles, to protect Landlord and Tenant from
any claim arising from the use of the Leased Premises by Tenant or Tenant's agents,
employees, subtenants, contractors, guests or invitees.
(ii) During the course ofany 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 $1,000.00, in non -reporting
form, covering the total value of work performed and equipment, supplies and materials
Lease.4grnrmew Page 4
furnished. Said policy of insurance -shall contain the "permission to occupy upon completion
of work and occupancy" endorsement.
(M) Boiler and machinery insurance covering pressure vessels, air tanks, boilers, machinery,
pressure piping, heating, air conditioning and elevator equipment and escalator equipment,
provided that the Leased Premises contain equipment of such nature, and insurance against
loss: of occupancy or use arising from any such breakdown, in such amounts as are
reasonably satisfactory to Landlord.
(iv) Such other insurance and 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 he issued by companies
acceptable to Landlord, shall name Landlord and such other persons as Landlord may designate as an
additional: insured and lass payee, and shall provide that the same may be canceled or modified only upon thirty
(30) days prior written notice to Landlord. Tenant shall evidence all such insurance coverage by delivering to
Landlord the original copies of all 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 arises or may arise in its favor and against the
other during the terraof this Lease for any and all loss of, or damage to, any of its property located within or
upon, orconstituting it part of, the Leased Premises, which loss or damage is covered by valid and collectible
fire and extended coverage policies, to the extent that such loss or damage is recoverable thereunder. Inasmuch
as the above mutual waivers wilt preclude the assignment of any aforesaid claim by way of subrogation (or
otherwise) to an insurance company (or any other person), landlord and Tenant severally agree immediately
to give each insurance company which has issued to it policies of insurance, written notice of the terms of said
mutual waivers; and to have said insurance policies properly endorsed, ifnecessary; to prevent the' invalidation
of such insurance coverages by reason of said waivers.
ARTICLE VII
1.01. Maintenance Tenant shall, at its expense, take good care of, repair, maintain and replace the Leased Premises
(including maintaining and replacing the roof, structural elements of improvements, parking, landscaping, windows, plate glass
and doors; heating, ventilation and:airconditioning equipment and ducts; electrical, plumbing and all other mechanical equipment
and installations) and keep the some free front waste and nuisance, and shall deliver up the same in a clean and sanitary condition
at the tnmination,of this Lease in good 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.
7.02. L,il 111ty Services. In addition to all rentals required herein, Tenant shall pay for all utilities of whatever kind
or sort that are used, installed or consumed in or upon, the Leased Premises and all water and sewer charges, as and when the
various charges therefor shall become due and payable; and Tenant shall pay any garbage or trash collection fee imposed by
governmental authority or licensee or franchisee. Landlord shall have no liability for any interruption in utility services provided
to the Leased Premises unless such interruption results from the willful misconduct or sole negligence of Landlord.
7,03. Alterations, Additions and improvements Tenant shall not make any alterations, additions orimprovements
to the Leased Premises without the prior written consent of Landlord. All alterations, additions or improvements made by Tenant
shall become the property of Landlord at the termination or expiration of this Lease, provided that Tenant, at Tenant's expense,
shall remove the same and repair all damage to the Leased Premises and/or Project caused thereby if Landlord so requests. To
the extent that Landlord consents to and Tenant performs or causes to be performed on the Leased Premises any work relating
to the alteration or improvement thereof or addition thereto, Tenant agrees that it will pay, or cause to be paid, all costs of labor,
services and/or materials supplied in the prosecutionofany such work and will keep the Leased Premises and Project free and
clear of all mechanic's liens and other liens on account of Iwork done for Tenant or persons claiming under Tenant. Landlord, as
a condition of granting its consent to any alteration, addition or improvement, may require that Tenant provide Landlord with
such security as Landlord, in Landlord's sole judgment, shall deem appropriate to insure that no such mechanic's liens or other
liens shall attach to the Leased Premises. In the eventany such lion is filed against the Leased Premises as a result of Tenant's
work. Tenant, at Tenants sole cost and expense, shall discharge the same within ten (10) days from the date of its filing; provided,
however, that if Tenant shall desire in good faith to contest any claim of such lien, it shall furnish Landlord with adequate
security, determined in Landlord's solejudgment, to insure that in the event a final judgment establishing the validity or existence
of the lien is entered, it will be promptly paid and satisfied. Withoutlimiting Landlord's other rights under the tercets of this Lease,
in the event Tenant, within ten (10)days from the date the lien is filed against the Leased Premises or Project, has not discharged
the same or contested it and posted adequate security with Landlord, as provided herein, Landlord may, but shall not be required
to, pay said claim and any costs. The amount so paid, together with reasonableattorney's fees and other collection expenses
incurred by Landlord in connection therewith, shall be immediately due and owing from Tenant to Landlord. In contracting for
any and all such labor, services, and/or materials, Tenant shall not be 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, Equipment and Fixtures. Tenant shall have the right to erect, install, maintain and operate on the Leased
Premises equipment, decorative items, trade and 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 shall not be entitled to remove any such property at any time
Loam AgpwMew
Page 3
Tenant is in default hereunder. Tenant shall repair any damage caused to the Leased Premises by such removal and restore the
Leased Premises to its original condition, reasonable wear and tear excepted.
7.05. Sigpj. Tenant shall not install signs on or about the Leased Premises except with the prior written consent of
Landlord and pursuant to applicable laws, codes and ordinances. Prior to the termination or expiration hereof, Tenant shall
remove such signs; provided that Tenant shall not be entitled to remove any signs at any time Tenant is in default hereunder. All
such installations and removals shall not injure or deface the improvements and Tenant shall repair any damage caused by such
actions.
7.06. Condltiaa of Prgper y: Disclaimer of Warranties. BY EXECUTION OF THIS AGREEMENT, TENANT
WARRANTS AND REPRESENTS TO LANDLORD THAT TENANT HAS EXAMINED THE LEASED PREMISES, AND
HAS DETERMLNED, BASED SOLELY UPON SUCH EXAMINATION" AND NO IN ANY WAY IN RELIANCE UPON
ANY WARRANTY OR REPRESENTATION OF LANDLORD, THAT THE LEASED PREMISES ARE SUITABLE FOR
TENANT'S INTENDED USE AND THAT THERE ARE NO DEFECTS OR CONDITIONS ,AFFECTING SUCH
SUITABILITY WHiCH ARE EITHER OPEN AND OBVIOUS OR COULD BE DISCOVERED UPON REASONABLE
EXAMINATION OF THE LEASED PREMISES, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW,
TENANT HEREBY WAIVES ANDRELEASESANY AND ALL WARRANTIES, EITHER EXPRESS OR IMPLIED, AS
TO THE CONDITION OF THE LEASED PREMISES, INCLUDING, BUT NOT LIMITED TO, ALL WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND SUITABILITY FOR TENANT`S INTENDED
USE. LANDLORD AND TENANT AGREE THAT TENANTS DUTIES AND OBLIGATIONS HEREUNDER, INCLUDING
THE OBLIGATION TO PAY RENT, SHALL BE INDEPENDENT OF AND NOT CONTINGENT UPON LANDLORDS
PERFORMANCE OF ANY AND ALL DUTIES AND RESPONSIBILITIES RELATING TO OR ARISING OUT OF ANY
WARRANTY NOT DISCLAIMER BY LANDLORD UNDER THE TERMS OF THIS PARAGRAPH.
7.07. DestnictionorDamatre.
(a) if the Leased Premises, or any part thereof, should be destroyed or damaged by fire or other casualty, Tenant
shall immediately deliver written notice thereof to Landlord.
(b) If the Leased Premises should be totally destroyed by fire, tomado or other casualty, or if they should be so
damaged by any such cause so that rebuilding or repairs cannot reasonably be completed within one hundred
eighty (180) days from the date of such damage, or if insurance proceeds actually received by Landlord by
reason of such damage or destruction should, in Landlord's judgment•, be insufficient to pay the entire cost of
repairing or rebuilding,. then Landlord, by written notice delivered to Tenant, may terminate this Lease effective
as of the date of such damage.
(c) If the Leased Premises should be damaged by fire, tornado or other casualty, but not tosuch an extent that the
rebuilding or repairs cannot reasonably be completed within one hundred eighty (180) days from the date of
such damage, or if Landlord otherwise shall not have elected to terminate this, Lease pursuant to Section
7.07(b) hereof, this Lease shall not terminate, but Tenant, at Tenant's sole cost and expense, shall immediately
proceed to repair and rebuild the Leased Premises to at least as good a condition as they were in prior to the
damage or destruction. Landlord agrees to make available to Tenant for such purpose all insurance 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 following 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
to the 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
proceeds payable under insurance policies and relating to damage to the LeasedPremises. Tenant shall receive
all proceeds, if any, attributable to the loss ofTenant'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 Vlll
8.01. Default bx Landlord. If Landlord shall neglect or fail to perform or observe any of the terms, covenants or
conditions contained in this Lease on its part to be performed or observed within a reasonable time, but in no event less than thirty
(30) days, after written notice of default from Tenant, then Landlord she be deemed tube in default hereunder. In the event of
Landlord's default, Tenant, as Tenant's sole remedy, may terminate this Lease, Tenant expressly waiving and releasing any and
all other remedies which might otherwise be available to Tenant, whether at law or in equity. It is expressly understood that no
default by Landlord shall constitute consent by Landlord for Tenant to perform or observe any terms, covenants or conditions
at Landlords expense, or to fail to fully comply with all of Tenant's obligations under the terms of this Lease, including, but not
limited to, payment of rent, Tenant expressly agreeing that Tenant's obligations under this Lease are independent of any and all
obligations on the part of Landlord.
8.02. Default by Tenant. The following events shall be deemed to be "events of default" by Tenant under this
Lease:
(a) Tenant shall fait to pay any installment of rent on the date that the same is due.
(b) Tenant shalt fail to comply with any term, condition or 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
L wv,4.r ement --
Page 6
within thirty (30) days after written notice from Landlord, Tenant shall not be in dcfault under the terns of this
Lease if Tenant shalt commence to, cure such failure within thirry-(30) days after written notice thereof from
Landlord to Tenant and. thereafter shall diligently, in good faith and continuously prosecute such cure to
completion.
(c) Tenant shall become insolvent, or shall make a transfer in fraud of creditors, or shall make an assignment for
the benefit of creditors.
(d) Tenant Malt file a petition under any section of the Bankruptcy Code or under any other similar law or statute
of the United States or any state thereof or Tenant shalt be adjudged bankrupt or insolvent in proceedings
filed against Tenant and, with respect to any involuntary proceedings filed against Tenant, Tenant shall fait
to dismiss or cause to be vacated such proceeding or any order entered in connection therewith within ninety
(90) days, after the filing or entry thereof.
(e) A mcciver or trustee shall be appointed for the Leased Premises or any part thereof and such receiver or trustee
is not discharged or dismissed within ninety (90) days after appointment.
(f) Tenant shall remove or attempt to remove, or shall 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.
8.03. Remedies of Landlord. Upon the occurrence of any event ofdefault, landlord shall have the option to pursue
any one or more of the following remedies without any further notice or demand whatsoever:
(a) Landlord may terminate this Lease. In the event that Landlord shall terminate this Lease, Tenant shall pay to
Landlord, upon demand and in addition to all accrued and unpaid sums owedby Tenant to Landlord hereunder,
an amount equal`to all rent which would otherwise be payable for the remainder of the then -torrent term of
this Lease, with Tenant's Proportionate Share of Landlord's Operating Expense being Computed based upon
the then -current Tenant's Proportionate Share of Landlord's Operating Expense being paid by Tenant.
Landlord'and Tenantagree drat it would be impossible to calculate the exact amount of damages suffered by
Landlord by reaswrr of Tenant's default, and 'that the sums described' herein constitute a reasonable estimate of
such damages and"not a penalty for Tenant's default.
(b) Without terminating this Lease, and subject to applicable law, Landlord may reenter and take possession of
the Leased Premises and remove all persons and property therefrom, in which event Landlord may, but, except
as otherwise provided by law, shall not be required to, relet the Leased Premises or any part thereof, for all or
any part of the ren indcrof the them -current term hereof to such parties and at such rental as Landlord, in
Landlord's judgment, may be able to secure. Should any rental be less than the rental Tenant is obligated to
pay under this Lease, plus the expense of reletting, then Tenant shall pay to Landlord, on a monthly basis, the
amount of any deficiency in the rent For purposes of this Section 8,03(b)i Landlord's expenseof reletting shall
include, but not be limited to, any leasing commissions paid by Landlord in connection with the teasing of the
Leased Premises to another tenant, any rental concessions and allowances (whether 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 terminating this Lease, and subject to applicable law, Landlord may enter into and upon the Leased
Premises, and do whatever Tenant is obligated to do under the terms of this Lease, and Tenant shall reimburse
Landlord on demand for any expenses which Landlord may incur in thus effecting compliance with Tenant's
obligations under this. Lease, together with interest on all sums paid by Landlord at. the maximum legal rate
from the date paid by Landlord to the date reimbursed by Tenant. Tenant further agrees that Landlord shall not
be liable for any damages resulting to Tenant from such action.
(d) Without limiting and in addition to Landlord's other remedies hereunder, it is expressly agreed that at any time
Tenant is in default hereunder, Landlord may change all locks on all doors to the Leased Premises and
otherwise exclude Tenant from the Leased Premises. In such case, Landlord shalt post on a door of the Leased
Premises a notice stating tha name and the address or telephone number of the individual or company from
which new keys may be obtained. Landlord shall not be required to provide the new keys to Tenant except
during Landlord's regular business hours. Anything contained elsewhere in this Lease to the contrary
notwithstanding, Landlord shalt not be required to deliver any new keys to Tenant or permit Tenant access to
the Leased Premises until such time as Tenant has cured its default Tenant further agrees that Landlord shall
not be requited to provide Tenant access to Tenant's personal property contained in the Leased Premises during
any time when Tenant is denied access by reason ofTenant's default.
Pursuit of any one remedy by Landlord shall not preclude pursuit of any other remedy provided herein, nor shall pursuit of any
remedy constitute a forfeiture or waiver of any rent due Landlord or for any damages accruing to Landlord by reason of the
violation ofany ofthe terms, provisions and covenants herein. The remedies set forth herein shalt be in addition to, and not in
lieu of, arty and all other remedies which are available to Landlord at law or equity.
8.04. Tenant's Personal Proncrty: Contractunl Security Interest. Without limiting Landlords rights under this
Least, in the event Tenant shall default hereunder, all of Tenants personal property shall remain on the Leased Premises and,
during any period of default, Landlord shall have the right to take exclusive possession of the same or, at its option, to require
Tenant to remove it. In addition to, and not in lieu of, Landlord's statutory lien, it is expressly agreed that Landlord shall have,
and Tenant hereby grants to 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 term hereof and for Tenant's performance of all of
Len..eA9re0&1e41
Page 7
Tenant's obligations, covenants and conditions hereunder. Tenant shall execute and deliver to Landlord appropriate UCC
Financing Statements as are requested by Landlord from time to time. Upon default by Tenant, Owner may require Tenant to
assemble all or anypart of the above -described peisonat property and make it available to Owner at any place to be designated
by Owner. Expenses of retaking, holding, preparing for sale, selling or the lice of the above-descn' ed personal property shall
include reasonableattorneys fees and legal expenses incurred by Landlord. Upon default by Tenant, Landlord may exercise any
and all of the right and' remedies of a secured party provided under the Texas Business and Commerce Code, as well as any and
all other rights and remedies possessed by Landlord.
ARTICLE rX
9.01. indemnity. Landlord shall not be liable for, and Tenant shall defend and indemnify Landlord from, any claim,
demand, liability, judgment, award, fine, mechanic's lien or other lien, loss, damage; expense, charge or cost of any kind or
character; (including attorney's fees and court costs) arising directly or indirectly from the repair, alteration; improvement, use,
occupancy or enjoyment of the Leased Premises or any other portion of the Building or Common Area by Tenant, Tenant's
assignees and/or subtenants, and their respective contractors, agents, licensees, or invitees, excluding, however, claims to the
extent resulting from the negligent of Landlord.
9.02. Assignment and t lb et(fin . Tenant shall not assign this Lease and/or sublet all or arty part of the Leased
Premises without the prior written consent of Landlord. It is expressly agreed that Landlord's prior written consent to any
assignment or subletting shall constituto a condition. precedent to the effectiveness of such assignment or subletting, and Landlord
shall not be bound thereby until and unless such consent is given. For purposes of this Tease, an "assignment" shall be deemed
to include, but not be limited to, the following:
(a) Any absolute assignment of some or all of Tenant's interest, rights and duties in the Lease and the Leased
Premises; including Tenant's right to use, occupy and possess the premises, or any part thereof, whether
voluntary, involuntary or byoperation of law;
(b) Any conditional, contingent or deferred assignment, sublease or conveyance by Tenant of some or all of
Tenant's interest, rights or duties in the Lease or the Leased Premises, including Tenant's right to use, occupy
or possess the Leased Premises, or any part thereof, including, without limitation, any mortgage, deed of trust,
pledge, hypothecation, lien, franchise, license, concession, or other security arrangement;
(c) if Tenant is a corporation, limited liability company, partnership or other legal entity, the transfer by sale,
assignment, death, incompetency, mortgage, deed of trust, trust, operation of law, or otherwise, of any shares,
membership interests, voting rights orownership interests which would result in a change in the identity of the
person or persons exeroisingiorwbo may exercise, effective control of Tenant; unless such change results from
the trading of`shares.listed on a recognized public stock exchange and such trading is not for the purpose of
acquiring effective control of Tenant.
9.03. ins ecn tions. Tenant shall permit Landlord and its agents to enter into and upon the Leased Premises at all
reasonable times forthe purpose of inspecting the same, for the purpose of maintaining or making repairs or aherations required
of Landlord, and for the purpose of exercising Landlord's rights in the event of Tenant's default hereunder. Landlord may place
"for lease" or "for sale" signs in and about the teased Premises and show the same to prospective Tenants during the last one
hundred eighty (180) days of the lease term
9.04. Condemnation,
(a) If, during the term of this Lease, all or a substantial part of the Leased Premises should be taken for any public
or quasi -public use under any governmental law, ordinance or regulation or by right of eminent domain, or
shall be sold to the condemning authority under threat of condemnation; this Lease shall terminate and the rent
shall be abated during the unexpired portion of this Lease, effective as of the date of taking of said premises
by the condemning authority.
(b) if less 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 under threat of condemnation, this Lease shall not terminate but Landlord shall restore
and reconstruct the Leased Premises provided such restoration and reconstruction shall make the same
tenantable and suitable for the uses for which the Leased Premises are leased hereunder and provided further
that Landlord shall not be required to expend any sums in excess of condemnation proceeds actually received
by Landlord. Ail minimum rent payable hereunder shall be abated, either in whole or in part, as may be
necessary and 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 shall be deemed that a substantial part of the Leased Premises has been
taken if in Landlords 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 condenmaUon
proceeds actually received by Landlord shall 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,
L eax Agreement
Page 8
Landlord may terminate this Lease by written notice to Tenant, with such termination to be effective as of the
date of taking.
(e) Landlord shalt be entitled to receive the entire condemnation award for the taking of all real property and
leasehold interests in the Leased Premises. Tenimfs right to receive a condemnation award for the taking of
its merchandise,_ personal property, goodwill, telocatioa expenses arrdlor interests in other than the resi
property taken shall not be affected in any manner by the provisions of this paragraph, provided that
Tenant's awarddoes not reduce or affect Landlord's award.
9.05. Subordination ofLease: Estoppel f a'eriilicates Tenant agrees that this Lease shalt be subordinate at all times
to ground or underlying Leasos and to the lien of any mortgages, deeds of trust, and other encumbrances now or hereafter
affecting the Leased Premises, or Landlord's interest or estate therein, and Tenant agrees upon demand to execute such further
instrumentssubordinating this Lease as Landlord may request At any time and 'from time to time, on not more than five (5) days'
written notice from Landlord, Tenant shall execute and deliver to Landlord a written estoppel certificate in a form acceptable to
Landlord. Tenanes.faiture to execute and deliver the estoppel certificate within said five (5) day period shall be deemed to make
conclusive and binding upon Tenant the statements contained in the estoppel certificate as true and correct, without exception.
Unless Tenant shall have notified Landlord in writing within said five (5) day period of any qualifications Tenant may have to
the statements in the estoppel certificate, Landlord and anyone participating with Landlord in the sale or mortgage of the Leased
Premises shall have the right to rely on the accuracy ofsuch statements.
9.06 rrender. Tenant shalt, upon the termination of this Lease, surrender the Leased Premises in good repair
and in a broom clean and sanitary condition, reasonable wear and tear, Landlords repairs and damage by condemnation or by
fire, tornado or other casualty not due to the negligence or willful misconduct of Tenant or Tenant's employees. agents,
subtenants, contractors, guests or invitees excepted.
9.07. Holdlg Overby Tenant in the event Tenant remains in possession ofthe Leased Premises after expiration
of this lease and without the execution of a new tease, such hold -over shall constitute and be construed as a tenancy from
month -to -month only, upon the same terms and conditions contained herein, except that the minimum rent shall be twice the
minimum rent paid for the last month of the term hereof; provided that Landlord, by the terms hereof, is not deemed to consent
to any such holdover by Tenant and may exercise all rights provided by law to remove Tenant from the Leased Premises.
9.0& Notices and Addresses. Except where otherwise expressly provided herein, all notices, demands and
communications provided to be given tinder this Lease shall be in writing and may given personally, by overnight delivery,
or by certified or registered mail, addressed to the proper party, at the address for.that party shown in the Pundamental Lease
Provisions. Notice shall be deemed received upon deposit of such notice in the United States mail, 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 (13) days' prior written notice to the other party hereunder.
9.09. Parties Bouttd. This Lease shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, legal representatives, successors, and assigns where permitted by this Lease.
9.10. Applicable Law. This Lease shall be construed under and in accordance with the laws of the state of Texas,
and all obligations of the parties hereunder are performable in Lubbock County, Texas.
9.11. Lral Constntetion. in case anyone or more of the provisions contained in this Lease shalt for any reason
be held to be invalid;: illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any
other provision hereofand this Lease shall be construed as if such invalid, illegal or unenforceable provision had never been
contained herein.
9.12. Prior Agreements Superseded. This Lease constitutes the sole and only agreement of the parties hereto and
supersedes any prior understandings or written or oral agreements between the parties with respect to the subject matter within.
9.13. Amendment No amendment, modification, or alteration of the terms hereofshall be binding unless the same
be in writing and duly executed by the parties hereto.
9.14. Waiver 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 be waiver of any breach ofthe same or any other term, condition, or covenant contained
herein.
9.15: ttorngy's Fees. In the event Landlord is required to employ attorneys to protect or enforce its rights
hereunder, Tenant agrees to pay Landlord's reasonable attorney's fees.
9.16. Force Maleure. Whenever a period of time is herein prescribed for action to be taken by Landlord or Tenant,
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. Time of the Essence. Time is ofthe essence to this Agreement.
9.18. Fxhlbits. All exhibits referenced herein and attached hereto are made apart hereof the same as if set forth
verbatim herein.
IN WITNESS WHEREOF, the undersigned Landlord and Tenant hereto execute this Lease as of the date first above
written.
Leone Agreement _---
Puge 9
LANDLORD-
BEMOVE, LTD., aTexas limited partnership
By: BEMOVE GP, L.L.C., a Texas limited liability
company, General Partner
By' MODULE TRUCK SYPSMS, INC., a
Texas co t+s ' n
By
Printed Na e
Title: ('(
TENANT:
MODULE TRUCK SYSTEMS, INC., a Texas
co
By: .t -
Printed Xirpez_ _
Title:
Lcasr Agrec trear Page 10
EXHIBIT "B"
J L- _... -._.I ..- -. I - _-. �. -. - -- -
srRE�r
Description
East 500 feet of Tract C Breedlove Addition to the City of Lubbock, Texas
EXHIBIT "C"
GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT
FOR SELECTED TAXING UNITS CONTAINED wITHIN
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
(3/4) 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.
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 Agreemenp
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.
j) 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 limitation of the uses of the Real Property or improvements
consistent with the general purpose of encouraging development or
redevelopment of the zone during the period covered by the Tax Abatement
Agreement.
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 VIII. Recapture.
2. 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 ll, 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 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 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 near 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.
3. 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 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.
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 VI11 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.
7. 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.
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
,�� +���,"� �'i `^..� ��s. " z ."�.�. ��.t` "', -� �"� ,+r: �c �ix�: � x,� � :+r`f a `a'�, ,, ,x,.- s k t•.:'��'� � t, .r '',w, �.:`t � � -- .., .
i cat�t nristk4:6� sul m ed :: h�a is :tax rise ictwn a fohsthiduorrr::be ins t be
ai`b �eiEriert� IMPfrilifr► s uwts �lift W, b �UtDELiNES
3 x eP o wild �a Z-fi,
Cnonving(y
W #�� A r'agreement
ORIGINAL COPY OF THIS APPLICATION AND ATTACHMENTS SHOULD BE SUBMITTED TO:
City of Lubbock
Business Development Department
P.O. Box 2000
1625 13th Street, Suite 105
Lubbock,TX 79457
(806) 775-2019
_{i .g a P py% t' yy�yy�e ■/�■`�`+tsy� „c ' „r . Ai, M� a� v��� ri. �, s.,, - ,-f„ p .
L
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 3/31/2004; $7 million for seven months
Annual Report Submitted? [ ] Yes [X] No
Tax Abatement Application 1
Industrial Tax Abatement Application
Page 2
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
0) The proposed facility is located in:
School District: Lubbock
City: Lubbock
Industrial Tax 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.
r,"Sec6on II[ - 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? ❑ 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.
��rrr�\F' sue' s�.� � I� {� ; F � �.• r.�' & A c �?:P, s "�'E` K�° �,. �m �i�,a,� t`�# �^�.�,,F;' f
(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 50" 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: G:IAKDATA041M221
Range: A180 - LAND -(GA.) - Al87 -VEHICLES Include: All assets
Page: 1
Date: 05/17/04
Time: 10:07:03
Date Acq Description Inv. Cr.
Cost
Sec. 179
Depr Basta 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*. A180 - LAND -(GA.)
01/25/99 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 0.0C
24,280.00
0.00
0.00
0.00 0,00
Summary For: A180
Cost
Section 179 +
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 (0) 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
4SSET 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 Usted
7
99,182.15
0.00
100.00%
0.00
18,777.85
0/30/00 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 A/C#: A183 - MACHINERY & SHOP EQUIP.
N15/96
MISCELLANEOUS EQUIPMENT
0.00
132,435.64
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
3/4"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
J16/96
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
U25/97
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
309.90
W19/97
0.00
2,342,63
0.00
2,342.63
0.00
2,342.63
W200 HY 7.00 Omit
Active New
Not Listed
9
0.00
0.00
100.00%
0.00
2,342.63
125197
LIGHTS -SHOP
0.00
3,352.32
3,352.32
0.00
0.00
3,352.32
MA200 MQ 7.00 Omit
Active New
Not Listed
8
0.00
0.00
1.00.00%
0,00
3,352.32
109/97
WELDER-rBOLT 225V
0.00
235.00
0.00
235.00
0.00
235.00
M-200 MQ 7.00 Omit
Active New
Not Listed
8
0.00
0,00
100.00%
0.00
235.00
'26/97
ELEC. WELDER PLUGS
0.00
765.32
765.32
0.00
0.00
765.32
MA200 MQ 7.00 Omit
Active New
Not Listed
8
0.00
0.00
100.00%
0.00
765.32
03/97
,=FiN6
0.00
3,850.00
3,850.00
0.00
0.00
3,850.00
MA200 MQ 7.00 Omit
Active New
Not Listed
8
0.00
0.00
100.00%
0.00
3,850,00
31197
AIR LINE DUCT
0.00
6,378.72
814.12
5,564,60
307.93
6,070.79
M-200 MQ 7.00 Omit
Active New
Not Listed
8
0.00
0,00
100.00%
0.00
6,378.72
10/98
TECHNIC PNEUMATIC LAUNCHER/
0.00
1,345.81
0.00
1,345.81
119.16
1,152.18
M'200 MQ 7.00 Omit
Active New
Not Listed
7
74A7
0.00
100.00%
0.00
1,271.34
0198
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
LIKGv Og7r- t-rE,.i ARC Rtrowrta 1-4 Cot-aam Gvwryt GA
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:IAKDATA041M221
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#-. A183 - MACHINERY & SHOP EQUIP.
12/22/98
STORAGE RACK
0.00
1.321.48
0.00
1,321.48
0.00
1,321.48
M'200 MO 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
04/26/00
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
34/26/00
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
X/13100
HYDRAULIC TABLE CART
0.00
215.74
0.00
215.74
1915
148,35
MA200 HY 7.00 Omit Active New
Not Listed
5
48.14
0.00
100.00%
0.00
167.60
)7/25100
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
0/25100
A70 CONTROLLER READER
0.00
471.81
0.00
471.81
4211
324.43
MA200 HY 7.00 Omit Active New
Not Listed
5
105.27
0.00
100.00%
0.00
366.54
0/26100
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
0131/00
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
0131/00
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
1/03100
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
2/17/01
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
t/24/01
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
)/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
120101
VAN BOW LIFT JIG
0.00
274.09
0.00
274.09
34.25
1 54. 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
131/02
-o ;;F!R Sfl"CLlCD "
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
/14/02
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 MQ 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 MQ 7.00 Omit Active New
Not Listed
3
3,813.78
0.00
100.00%
0.00
9.186.22
24102
9"METAL CUTTING SAW
0.00
862.95
0.00
862.95
101.26
508.53
MA200 MQ 7.00 Omit Active New Not Listed
3
253.16
0.00
100.00%
0.00
609.79
! 8/02
ffc`
0.00
267.45
0.00
267.45
34.11
148.06
MA200 MQ 7.00 Omit Active New Not Listed
3
85.28
0.00
100.00%
0.00
182.17
8/02
0.00
280.34
0.00
280.34
35.76
155.19
MA200 MQ 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:%AKDATA041M221
Time: 10:07:04
Date Ac4 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#: A183 - MACHINERY & SHOP EQUIP.
11/07/02 1/2" ELECTRIC DRILL
0.00
144.55
0.00
144.55
18.44
80.02
MA200 MO 7,00 Omit Active New
Not Listed
3
46.09
0.00
100.00%
0.00
98.46
32/11/03 DRAWINGS & PATTERNS
0.00
45,000.00
2z 0.00
45,000.00
8.855.69
14,005.10
MA200 MO 7.00 Omit Active Used
Not Listed
3
22,139.21
i. 0.00
100.00%
0.00
22,860.79
32/11/03 JIGS & FIXTURES
0.00
47,500.00
3Zv 0.00
47,500.00
9,347.67
14,783.16
MA200 MQ 7.00 Omit Active Used
Not Listed
3
23,369.17
0.00
100.00%
0.00
24,130.83
A/18/03 2T STORAGE MODULE
0.00
1,941.75
,g\ 11,941.75
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
0130/03 LUBBOCK-CHAIN OILER VAT
0.00
1,351.67,,;A 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#: A183
(45 assets)
296,172.37
14,804,79
2B1,367.58
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
23,070A2
23,070A2
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
V15/96
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
1,037.76
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
Nat Listed
9
0.00
0.00
100.00%
0.00
354.05
/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
25/96
DESK W/ RETURN
0.00
701.19
0.00
701.19
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
25/96
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
MAGNAVOXTVNCR
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
8/96
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
V96
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:\AKDATA04W1221
Time: 10:07:05
Date Acq
' Description
Inv. Cr.
Cost
Sec.179
Depr Basis
Cuff. Depr
Beg A/Depr Sep Price
Date Sold
Meth - Conv • Lite - 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
11/12/96
EXEC. CHAIR & 6 CONFERENCE CHAIRS
0.00
2,782.10
0.00
2,782.10
0.00
2,782.10
M•200 HY 7.00 Omit Active New
Nat 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%
0.00
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%
0.00
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 Active New
Not Listed
9
0.00
0.00
100.00%
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
06/20/97
COMPUTER -CD ROM(TOUCHPAD
0.00
194.15
194.15
0.00
0.00
194.15
MA200 MQ 5.00 Omit Active New
Not Listed
8
0.00
0.00
100.00%
0.00
194.15
)6/20/97
SOFTWARE -WINDOWS 95NVORDPERFET
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
)9/26/97
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
1/17197
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
2101/97
PRINTER-LEXMARK 2390
0,00
377.44
377A4
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
0/24M
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
3/04/99
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
1105199
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
J12/99
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
115/99
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
T3/99
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-200 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: 05117104
Method:
1 - FEDERAL
File: WAKDATA041M=1
Time: 10:07:05 .
Date Acq
Description
Inv. Cr.
Cost
Sec.179
Depr Basis
Curr. Depr
Beg AlDepr Sell Price
Date Sold Math - 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
05/20/99
HP NETSERVER #2
0.00
2,768.07
0,00
2,768,07
159.44
2,608.63
W200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
2,768.07
05/20M
ASCEND PIPELINE 50 ROUTER
0.00
646.17
0.00
646.17
37.22
608.95
M12DO HY 5.D0 Omit Active New
Not Listed
6
0.D0
0.00
100.00%
0,00
646.17
05/20/99
3 COM SUPERSTACK If 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
1
05120/99
2X HP JETDIRECT 500X PRINTER PORT
0.00
839.27
0.D0
839.27
48.34
790,93
M'200 HY 5.00 Omit Active New
Not Listed
6
0.D0
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 PANDUfT 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
05/20/99
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
)5/20/99
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
244.28
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
4BEOR610k NI6 BAeK9FFIGS
0.00
1,599.65
0.00
1,599.65
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
,5/20/99
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
5/20199
0.D0
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
5/20190
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
5/20/99
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
3/20199
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
3/20/99
DSI 20 USER DATABASE ENGINE
0.00
4,871.25
0.00
4,871.25
280,58
4,590.67
M'200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
4,871.25
3/31/99
3 COM 4 PORT SWrrCH
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
J31/99
HP JETDIRECT 500X
0.00
419.63
0.00
419.83
24.17
395.46
M'200 HY 5.00 Omit Active New
Not Listed
6
0.00
0.00
100.00%
0.00
419.63
/01199
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
103/99
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: GAAKDATA04\M221
Time: 10:07:06
Date Acq
Description
Inv. Cr.
Cost
Sec.179
Depr Basis
Cu". Depr
Beg AlDepr 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
07/01M
3 WINDOWS NT WORKSTATION
0.00
925.46
0.00
925.46
53.31
872.15
W200 FfY 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
M'200 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
1
11/18/99
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
860.64
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
12/22199
HP 1100XI PRINTER
0.00
365.57
0.00
355.57
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 OFFICEJET T65
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
D6/19/Oo
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
10,264,08
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
19/21/00
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
19/21/00
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
0/16100
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
93427
1/03100
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
1/09/00
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
1/15/00
MAXTOR 15 GS 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
?/04/00
HP C566 EVECTRA COMPUTER (REX)
0.00
915.86
0.00
915.86
105.51
75T60
M-200 HY 5.00 Omit Active New
Not Listed
5
52.75
0.00
100,00%
0.00
863.11
'l05/00
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
Y05100
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
114/01
NORTON ANTNIRUS 7.5
0.00
819.11
0.00
819.11
94.36
677.57
M-200 FfY 5.00 Omit Active New Not Listed
5
47.18
0.00
100.00%
0.00
771.93
123/01
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
'05101
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
Sea 179
Depr Basis
Curr. Depr
Beg A/Depr Sett 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 & FLKTURES
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
149.76
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
4
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
M/26102
TJ 4ro 96
0.00
345.44
0.00
345.44
43.16
194.38
MA2D0 HY 7.00 Omit Active New
Not Listed
4
107.90
0.00
100.00%
0.00
237.54
34/05/02
SOFTVIEW SINGLE USER LIC.
0.00
250.00
0.00
250.00
27.30
181.75
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
)4/30/02
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
13530
17/09/02
CATIPALM ENGINE SOFTWARE
0.00
582.42
0.00
582.42
73.38
398.96
MA200 MQ 5.00 Omit Aative New
Not Listed
3
110.08
0.00
100.00%
0.00
472.34
9/24/02
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
9127/02
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
2/06/02
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
5/19/03
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
3110/03
LATHAM TIME CLOCK
0.00
365.70 S
l
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
1108103
0.00
1,604.24 g\3
1,e04.24
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
1/11/03
LEXMARK 2490 PRINTER
0.00
473.21 )i
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
1113/03
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 LA 300 LASERJET
0.00
407.37.E
407.37
0.00
0.00
407.37
MA200 HY 5.00 Omit Active New
Not Listed
2
0•0oJ
0.00
100.00%
0.00
407.37
�30/03
LUBBOCK-3SHELF 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
'03104
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
03104
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
Asset Depreciation Report - Sorted by ASSET A/C# Page: 8
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#: A185 - FURNITURE & FDCTURES
02/03/04
VE 175B MONITOR
MA200 HY 5.00 Omit
Active New
Not Listed
02/05/04
LASERJET 130ON
MA200 HY 5.00 Omit
Active New
Not Listed
02/05/04
OFFICE JET 6110XI
MA200 HY 5.00 Omit
Active New
Not Listed
02/26/04
HP 0530 COMPUTER
MA200 HY 5.00 Omit
Active New
Not listed
03/25/04
MA200 HY 5.00 Omit
Active New
Not Listed
0.00
538.29
538.29
0.00
0.00
538.29
2
0.00
0.00
100.00%
0.00
538229 -
0.00
393.55
393.55
0.00
0.00
393.55
2
0.00
0.00
100.00%
0.00
393.55
0.00
289.90
289.90
0.00
0.00
289.90
2
0.00
0.00
100.00%
0.00
289.90
0.00
2,180.70
2,188.78
0.00
0.00
2,188.78
2
0.00
0.00
100.00%
0.00
2,188.78
0.00
393.55
393.55
0.00
0.00
393.55
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: A185
Cost
Section 179 +
Accum. Depr.
= Total
Beginning Balances (123 assets)
286,856,24
20,171.71
257,370.25
277.541.96
+ Additions (A) (0 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 IT) (0 assets)
0.00
0.00
0.00
0.00
Ending Balances (123 assets)
286,856.24
20,171.71
284,079.10
284,250.81
\SSET A/C#: A187 - VEHICLES
0115196
38
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
0/15196
M'200 HY 5.00 Omit
Active New
Not Listed
0/15/96
M•200 HY 5.00 Omit
Active New
Not Listed
0115196
89 FORD F150 #30
M'200 HY 5.00 Omit
Active New
Not Listed
)/15/96
90 FORD SUPER DUTY #8
M•200 HY 5.00 Omit
Active New
Not Listed
V15/96
90 FORD SUPER DUTY #7
M-200 HY 5.00 Omit
Active New
Not Listed
1115/96
M'200 HY 5.00 Omit
Active New
Not Listed
/15/96
91 FORD SUPER DUTY #9
M'200 HY 5.00 Omit
Active New
Not Listed
/15/96
95 FORD F150 CT #295
M'200 HY 5.00 Omit
Active New
Not Listed
115/96
-86-"0 19J
M•200 HY 5.00 Omit
Active New
Not Listed
10/97
M-200 HY 5.00 Omit
Active New
Not Listed
10/98
iiD-F
M•200 MQ 5.00 Omit
Active New
Other List
31/00
M-200 HY 7.00 Omit
Active New
Not Listed
12/00
HAWKINS GMC CHASIS CONY. TO BED
M-200 HY 5.00 Omit
Active New
Not Listed
:9102
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°%
0.100
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
1,2%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
3,500.00
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%
0.00
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# Page: 9
Company: MODULE TRUCK SYSTEMS, INC. Year End: 03/31/05 Date: 05/17/04
Method: 1 - FEDERAL File: G:IAKDATA04110221 Time: 10:07:08
Date Acq Description Inv. Cr. Cost Sec. 179 Depr Basis Curt. Depr Beg A1Depr Sell Price
Date Sol Meth - Conv- Ufa - ITC - Stat - New - Listed Depr. Yr. Net Book Value Salvage Value Bus. Percent Curr. AFY Depr. End A/Depr Gain/Loss
ASSET A/C#: A187 - VEHICLES
10/29/02 2002 CHEVROLET C-15 0.00 29,621.05 0.00 29,621.05 4,229.89 19,046.33
2GCEC19T721398959 3 6,344.83 0.00 100.00% 0.00 23,276.22
MA200 MQ 5.00 Omit Active New Not Listed
Totals for ASSET A/C#: Al87
(17 assets)
132,079.28
0.00
132,079.28
9,439.07
109,760.12
0.01
12,880.09
0.00
0.00
119,199,19
0.01
Summary For: Al87
Cost
Section 179 + Accum. Depr.
a Total
Beginning Balances
(17 assets)
132,079.28
0.00
109,760A2
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
0.00
196,464.31
0.00
0.00
662,942.58
0.00
Summary For Grand Totals
Cost
Section 179
+ Accum. Depr.
x 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 (0) and Trades (T) (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
4dditional Summary Statistics for Assets:
Currant 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
Traded Assets
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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% Rate: 0.00
Total Addidonai Rrst Year Depreciation Taken: 0.00
Page 1 of 2
Lubbock Central Appraisal District
- ` 2004 Current Values 4,>
Ownership is current as of 08/27/04 _
Links Property Detail Sheet( R115059)
• Home. ; History ' Datasheet View Sketch i View Images S Sift
JU
• General Information Owner Information
• News Owner ID: 0033664
Owner Name: EAGLE PICHER IND INC
• FAQ Owner Address: ATTN RON WRIGHT PO BOX 779
• Taxing Units CINCINNATI,OH 46201-0779
Property Address: 1802 E 50TH ST
• Taxpayer Info LUBBOCK, 79404
• Forms
• Credit Card Payments
Searches
Parcel Information
• Owner Search
Legal Description:
BREEDLOVE TR A B & C
Acreage:
• Address Search
Cross Reference:
R107400-00010-00000-000
Undivided Interest:
• QuickRef ID Search
Exemption Codes:
Property Data
Entity Codes:
GLB (Lubbock County)
CLS (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:
676
• 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
j -W I (Misc. Improvement)
F2 (F2 - Real Industrial)
1
$ 2,046,400
imps I (Misc. Improvement)
F2 (172 - Real Industrial)
1
$ 0
Ima I (Misc. Improvement)
F2 (F2 - Real Industrial)
3
$ 0
)mp4 I (Misc. Improvement)
F2 (172 - Real Industrial)
3
$ 0
4
Land
http://www.lubbockcad.org/AppraisalIPublicAccess/PropertyDetail.aspx?PropertyID=7834... 4/8/20 0 5
Page 2 of 2
ID Type SPTB Acre Market
Landl C (Commercial) F2 (172 - Real Industrial) $ 91,982
Land2 C (Commercial) F2 (F2 - Real Industrial) $ 91,982
http://w wv.lubbockcad.org/AppraisalIPublicAccesslPropertyDeta.il.aspx?ProperryID=7834... 4/8/2005