10. FINANCING
We do not offer any financing
programs to you; however, Novus? Inc., an affiliate of ours, does lease certain
equipment to you.
SUMMARY OF
FINANCING OFFERED
|
Item Financed -Source
|
Amount Financed
|
Down Payment
|
Term (Years)
|
Monthly
Lease
Payment
|
Pre-Pay Penalty
|
Security Required
|
Liability Upon Default
|
Loss of Legal Right on
Default
|
|
Windshield Repair Equipment
-Novus? Inc."1
|
Value of Equipment
|
None
|
10
|
$45
|
None
|
Novust Inc. retains title to the leased equipment
|
Surrender of equipment;
payment of Novus? Inc.''s costs and expenses
|
Defenses are not
waived
|
(1) Novus? Inc.
will lease certain glass repair equipment to you, as described in Item 8 above.
The equipment lease (Exhibit E to this Offoring CiroularDisclosure
Document) will be for a term of 10 years to coincide with the term of the
Franchise Agreement. Lease payments for the 2 windshield repair bridges and the
Crack Mouse* equipment are $45 per month, or you may prepay $2,000 for the full
10-year term of the lease (see Item 6, Note 10). If you are an existing Novus
franchisee, are re-franchising your Novus� business, and are using what is
known as the "classic" repair bridges, you can upgrade to our most
current model repair bridges (currently known as the "Millennium"
repair bridge), by paying us a lump sum amount of $1,800 for this equipment,
which will prepay the lease payments for the full 10-year term of the lease. In
either case, you will have no right or title to the equipment other than that
contained in the lease agreement and you will not own the equipment at the end
of the lease. Novus? Inc. will not refund prepaid lease payments if the
equipment lease is terminated early. You will be in default if you fail to make
required payments, breach the equipment lease, become insolvent or file for
bankruptcy, or breach your Franchise Agreement or Affiliate License Agreement
with Novus. If you default, Novus? Inc. may terminate the equipment lease,
recover the leased equipment, and recover its damages, costs and attorneys''
fees. The equipment lease does not require you to waive any defenses.
Novus and Novus? Inc. reserve
the right to sell, assign, or discount to any third party, in whole or in part,
any note, contract, lease or other instrument you sign. Novus and Novus? Inc.
do not guaranty your notes, leases or other obligations.
