Exhibit 10.31
GE Technology Finance
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3755 NW Falcon
Ridge
Bend, OR 97701
541 317 4175 Office
513 794 5844 Fax
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Revised December 2, 2005 9
(Lock Language Added)
Revised November 4, 2005
August 3, 2005
Mr. Dick Mansfield
Chief Financial Officer
Duckwall-ALCO Stores, Inc.
401 Cottage Avenue
Abilene, KS, 67410
Via: E-mail
Dear Dick:
On behalf of General Electric
Capital Corporation, I am pleased to present the following flexible
lease financing proposal to Duckwall-ALCO.
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LESSEE:
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Duckwall-ALCO
Stores, Inc. (“DUCK”)
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LESSOR:
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General
Electric Capital Corporation, and/or its assigns
(“Lessor” or “GECC”)
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VENDOR:
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Various.
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EQUIPMENT:
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Miscellaneous
IT assets*/** including, but not limited to:
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Hardware:
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Host
Hardware**
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$ 411,027.00
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IT Hardware
POS
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$ 5,579,045.00
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POS
Installation and other miscellaneous
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$ 1,161,800.00
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Total
Hardware
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$ 7,151,872.00
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Software:
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Software,
services/labor/consulting/installation:
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$ 6,652,779.00
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Total
Software/Implementation
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$ 6,652,779.00
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Total
Equipment
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$13,804,651.00
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*
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All equipment is
subject to review and approval by GETF for configuration and
price.
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**
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Assumes Duck
will keep initial Host Hardware purchase of $529,557 on its own
line of credit.
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EQUIPMENT
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COST:
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GECC will
establish a $14,500,000 lease line for DUCK
Note: This lease line is for existing stores only. The lease line
can be increased to accommodate any new stores that DUCK plans to
open.
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LOCATION:
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DUCK offices
and retail facilities throughout the United States
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PAYMENT
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FREQUENCY:
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Quarterly, in
advance
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INITIAL
TERM:
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60 months for
software and 48 months for hardware as outlined below
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ANTICIPATED
ROLLOUT PERIOD:
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Beginning
August 1, 2005 through July 31, 2006
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LEASE
SCHEDULES:
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GETF would
issue assignment of DUCK purchase orders and pay for IT assets
accepted throughout the rollout period. All
assets/licenses/services accepted by DUCK during a quarterly period
would comprise one lease schedule that would commence the first day
of the next calendar quarter. e.g. items/services delivered,
installed, and accepted in October, November and December, would be
on a lease schedule commencing January 1, 2006
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COMMENCEMENT
DATE:
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The first day
of the quarter following the Acceptance Date
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SOFTWARE AND
SERVICES
LEASE PAYMENT FACTOR:
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Lease
Term
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Lease Rate
Factor as a percentage of Original Equipment Cost
(“OEC”) plus applicable taxes
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60
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5.8272
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The Lease
Rate Factors in this proposal are indicative only and are based on
rates in effect at the time this proposal was issued for similar
instruments and similar maturities to this lease, comparable term
U.S. Treasuries. The original equipment cost for each schedule
shall be multiplied by the Lease Rate Factor to determine the
quarterly payment
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SOFTWARE AND SERVICES
END OF LEASE
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OPTIONS:
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$1.00 Purchase
Option
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I
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