This excerpt taken from the VLG DEF 14A filed Oct 2, 2006.
West Rentals, Inc.
The Company leases 32 buildings from West Rentals, Inc., a West Virginia corporation (West Rentals), of which 30 are leased pursuant to a Master Lease Agreement (the Master Lease) and two of which are leased pursuant to pass-through subleases. Mr. West is the sole shareholder of West Rentals. The Master Lease terminates on April 30, 2011 and may be renewed for an additional five-year term. Currently, the Company pays an aggregate of $151,066 a month to West Rentals as rent for all real property leased. In addition, the Company pays all utility bills and fees as well as all property and local taxes on the real property leased from West Rentals. The Company also rents cylinders and trailers from West Rentals and currently pays approximately $4,225 a month to West Rentals for such rentals. Employees of West Rentals provide occasional construction and maintenance related services to the Company. West Rentals bills the Company for such services on an hourly basis. Aggregate expenditures by the Company under the Master Lease, for rental of cylinders and trailers and for construction and
maintenance services was approximately $1,659,795 for the fiscal year ended June 30, 2006. During fiscal year 2004, the Company entered into agreements to cancel the lease obligation for three properties of which the Company had discontinued the use. Under this agreement, the Company paid $537,258, which was included in operating expenses for the year ended June 30, 2004, to cancel the remaining term of leases and the remaining obligations of $1,979,668. The Company believes that the amounts it has paid for rental of real property, cylinders and trailers, for construction and maintenance services and for the cancellation of leases have not been less favorable than could have been obtained in arms-length transactions with unaffiliated third parties.