STATE OF SOUTH CAROLINA
COUNTY OF BEAUFORT
LEASE AGREEMENT
▇▇ ▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇, ▇.▇.
THIS LEASE AGREEMENT is made this 3rd day of August 1995, by and between the
Landlord, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, and the Tenant, Tear Drop Putter Corp.
WITNESSETH: THAT,
(1) Premises: Manner of Use. Landlord, upon the terms and conditions
following, agrees to lease approximately 3920 square feet in unit Bldg 1 of
Landlord's building at ▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ of Beaufort,
State of South Carolina.
(2) Common Facilities: The common facilities furnished by Landlord
including, without limitation, all parking areas, driveways, lighting
facilities, and other areas and improvements, shall, wherever possible, be
subject to the exclusive control and management of Landlord. Landlord shall have
the right to establish, modify, and enforce reasonable rules and regulations
with respect to the common facilities; to change the areas, locations, and
arrangements of parking areas and other common facilities; to enter into,
modify, and terminate easements and other agreements pertaining to the use and
maintenance of the parking areas and other common facilities; to close
temporarily any or all portions of the said areas of facilities; to discourage
non-customer parking; and to do and perform such other acts Landlord shall
determine to be advisable with a view to the improvements of the convenience and
use by tenants, employees and customers.
Landlord will operate and maintain the common facilities and Landlord
reserves the right in its sole discretion to change, reduce or supplement any or
all of the common facilities as long as adequate facilities in common areas are
made available to Tenant.
(3) Alterations: Landlord reserves the right at any time to make alterations
in which the Leased Premises are contained.
(4) Term: The term of this lease shall be for 3 years, beginning Dec 1,
1995 and ending Nov 30, 1998, unless sooner terminated, as hereinafter provided,
on the following terms and conditions:
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(5) Rent: The rent shall be $$38,400 for the first year $3,200 per
month, payable on the FIRST DAY OF THE M0NTH. The first month's rent shall be
due Dec 1, 1998. For the following year and each successive year thereafter, a
"cost-of-living" (Southeastern U.S.) increase shall be added to the above
rental fees. Tenant agrees to pay Landlord without any set-off or
counterclaim whatsoever. (If the commencement date is not the first day of a
month, or if the lease termination date is not the first day of a month, a
prorated monthly installment shall be paid.)
All payments shall be made to ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, or as otherwise designated by Landlord.
(7) Utilities and Refuse: Landlord shall not be liable in the event of any
interruption in the supply of any utilities. Tenant agrees that it will not
install any equipment which will exceed or overload the capacity of any utility
facilities and that if any equipment installed by Tenant shall require
additional utility facilities, it shall be installed at Tenant's expense in
accordance with plans and specifications to be approved in writing by Landlord.
Tenant shall be solely responsible for and shall promptly pay all charges for
use or consumption for heat, air conditioning, and electricity in his unit.
Tenant shall also be responsible for his use-share of the building refuse
charges as determined bv Landlord.
(8) Taxes: Tenant at all times shall be responsible for and shall pay before
delinquent, all taxes on any personal property of any kind owned, installed, or
used by Tenant, including leasehold improvements.
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Tenant agrees to pay before they become delinquent all taxes, permits or
license fees levied, imposed, or assessed by any government authority in
connection with Tenant's activities on and from the Leased Premises.
(9) Use of Premises: The premises are to be used for the purpose of
marketing, selling, assembly of golf clubs. Tenant shall restrict its use to
such purposes, and shall not use or permit the use of these premises for any
other purpose without the written consent of the Landlord, or Landlord's
authorized agent.
(1O) Restrictions on Use: Tenant shall not use the premises in any manner
that will increase risk covered by insurance on the premises and result in an
increase in the rate of insurance or a cancellation of any insurance policy,
even if such use may be in furtherance of Tenant's business purposes. Tenant
shall not keep, use, or sell anything prohibited by any policy of fire insurance
covering the premises, and shall comply with all requirements of the insurers
applicable to the premises necessary to keep in force the fire and liability
insurance.
(11) Default: Not withstanding any other clause in this Lease, if the Tenant
does not make payment of rent or any other sum due within 10 days of due date,
or if Tenant shall sublet said premises, or mortgage, pledge, or assign this
Lease without Landlord's written consent, or if Tenant shall fail to observe and
perform any of the covenants, conditions and agreements herein, or any of the
rules and regulations made a part hereof, as well as any reasonable additions or
modifications, or if Tenant shall vacate or abandon the premises for a period of
thirty days or more, or fail to take possession of the premises during the term
of the lease, or if Tenant shall be adjudged to be bankrupt, or a receiver or
trustee be appointed and not be discharged within thirty days from the date of
such appointment, then Landlord may among other remedies elect:
A. To enter free from all claims of the Tenant and repossess said premises
and to remove all persons and property in the same manner and with the same
rights as if this Lease had not been made; to store without liability for
safekeeping, or to dispose of the effects therein; and then this Lease and
everything herein contained shall terminate, and be utterly void.
Notwithstanding the re-entry by Landlord, the Tenant shall remain liable for the
amount of all rent and liquidated damages provided for under this Lease, plus
the cost of reletting, if any; any remaining payments of this Lease shall become
due and owing at the time of default; and
B. As agent of Tenant to enter, repossess and remove without notice, and to
re-rent said premises to the best advantage, applying rentals received to the
amount due from Tenant under this Lease, and to expenses so incurred, including
costs of remodeling, in which case the deficiency, if any, shall be paid to the
Landlord by the Tenant. Tenant in such event to be liable for such expense when
incurred and installments of rents and other charges as they become due; and
C. It is agreed that after default or breach, Landlord may take immediate
possession of the leased premises.
D. The Landlord shall have a first lien on Tenant's interest in this
Lease, and all equipment, appliances, furniture or other furnishings of any
nature, used or placed on the leased premises, to secure the payment and
performance of Tenant's obligations hereunder in case of default; and
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E. Landlord's remedies under this Lease are non-exclusive nor limited to the
remedies provided in this Lease.
(12) Landlord's Right of Entry: The Landlord shall have the right, without
charge or diminution of rent, to enter the leased premises at all reasonable
times and in a reasonable manner for the purposes of examining the leased
premises, and making repairs or improvements either to the leased premises or to
utility lines or other facilities of the building or to install such lines or
facilities.
Tenant shall upon the discovery of any defect in or injury to the Leased
Premises, or any need of repairs, promptly report the same to Landlord in
writing, specifying such defects. There shall be no allowance to Tenant or
diminution of rent and no liability on the part of the Landlord by reason of
inconvenience, annoyance, or injury to alterations, additions, or improvements
to the fixtures, appurtenances and equipment.
A. During the three months prior to the expiration of the term of this
Lease, Landlord may exhibit the leased premises to prospective tenants. If,
during the last month of the term of this Lease, Tenant shall have removed all
of Tenant's property, Landlord may, on forty-eight hours' notice to Tenant,
enter and alter, renovate and redecorate the Leased Premises without charge or
abatement of rent.
B. Landlord shall be allowed to take all material into and upon the Leased
Premises that may be required for repairs or alterations (but only as or when
needed for immediate use) without the same constituting an eviction of Tenant in
whole or in part while such repairs or alterations are being made, by reason of
loss or interruption of the operations of Tenant.
(13) Alterations, Improvements and Fixtures: Tenant shall make no changes,
alterations or additions to the premises or attach or affix any article thereto
without Landlord's prior written consent. All alterations, additions or
improvements which may be made by either of the parties upon the premises,
except unattached trade fixtures or office furniture, put in at the expense of
Tenant, shall not be removed but shall become the property of Landlord upon
termination of this Lease agreement; provided, however, that Landlord shall have
the option, to be exercised on termination of this Lease Agreement, to require
Tenant to remove any or all of such additions, improvements or fixtures and
restore the premises to the original condition at Tenant's expense.
As a condition to Landlord's consent to the making by Tenant of
alterations, decorations, installations, additions, or improvement to the
Leased Premises, Tenant agrees to obtain and deliver to Landlord written and
unconditioned waivers of mechanic's liens upon the real property in which the
Leased Premises are located, for all work, labor, and services to be
performed and materials to be furnished by them in connection with such work
signed by all contractors, subcontractors, suppliers and laborers to become
involved in such work. (If any mechanic's lien is filed against the Leased
Premises, or the building of which the same form a part, for the work claimed
to have been done for, or materials claimed to have been furnished to Tenant,
it shall be discharged by Tenant within ten days thereafter, at Tenant's
expense, by filing the bond required by law.)
(14) Property Not Removed: All of Tenant's personal property not removed
from the Leased Premises when Tenant leaves the premises on termination of this
Lease Agreement shall be conclusively presumed to have been abandoned by Tenant
and shall forthwith become Landlord's property provided, however, that Landlord
instead may have such personal property removed and returned to Tenant at
Tenant's expense.
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(15) Holding Over: Should Tenant hold the Leased Premises after termination
of this Lease, the Tenant will be a tenant from month to month, at such rental
rate and subject to such other charges or conditions as the Landlord may from
time to time deem to be necessary and proper. Such month-to-month tenancy may be
terminated by either party upon the giving of thirty days' written notice to the
other party prior to such termination. No receipt of money by Landlord from
Tenant after termination of this Lease shall reinstate or extend this Lease, or
affect any prior notice given by Landlord to Tenant, and no extension of this
Lease shall be valid unless in writing, signed by Landlord and Tenant.
(16) Rules and Regulations: Tenant shall comply with the rules and
regulations marked Exhibit A, as well as all reasonable changes that may from
time to time be made by Landlord for the operation and protection of the
building and protection and welfare of Landlord's tenants and invitees. Changes
and additions to the rules and regulations shall become effective and a part of
this Lease upon delivery of a copy to Tenant.
(17) Government Regulations and Applicable Law: Tenant shalI comply with all
valid laws, ordinances, rules, and regulations of all government authorities
pertaining to use and occupancy of Leased Premises. The law of the State of
South Carolina shall be solely applicable in determining the rights of the
parties under this Lease.
(18) Structural Repairs: Landlord will make all necessary structural repairs
to the Leased Premises provided Tenant shall give Landlord written notice of the
necessity for such repairs, and provided that the damage thereto shall not have
been caused by negligence of Tenant, its concessionaires, officers, employees,
or contractors, in which event Tenant shall be responsible.
(19) Interior Repairs: Tenant shall at its own cost and expense, take good
care of and make necessary repairs, or replacements, to the interior of the
Leased Premises, the fixtures and equipment therein and appurtenances thereto,
including interior windows, doors, signs, showcases, floor coverings, interior
walls, columns and partitions, and lighting. Tenant agrees to maintain in good
condition the electrical equipment, heating and air conditioning equipment, and
plumbing fixtures in the Leased Premises.
Any damage sustained by any party caused by mechanical, electrical, plumbing
or any other equipment or installations, whose maintenance and repair is the
responsibility of Tenant shall be paid by Tenant, and Tenant shall indemnify and
hold Landlord harmless from any and all claims, actions, damages and liability
in connection therewith, including, but not limited to, attorney's and other
professional fees, and any other cost which Landlord might reasonably incur.
(20) Assignment and Subletting: Tenant shall not assign, mortgage, or
encumber this Lease, in whole or in part, or sublet all or any part of the
Leased Premises without the prior written consent of Landlord. The consent by
Landlord to any assignment or subletting shall not constitute a waiver of the
necessity for such consent to any subsequent assignment or subletting. If this
Lease be assigned, or if the Leased Premises or any part thereof be occupied by
anybody other than Tenant, Landlord may collect rent from the assignee, or
occupant, and apply the net amount collected to the rent herein reserved, but no
such assignment, underletting, occupancy or collection shall be deemed a waiver
of this provision or the acceptance of the assignee, subtenant, or occupant as
Tenant, or as a release of Tenant from the further performance by Tenant of the
provisions on its part to be observed or performed herein. Notwithstanding any
assignment or sublease, Tenant shall remain fully liable and shall not be
released from performing any of the terms of this Lease.
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(2l) Indemnity: Tenant shall indemnify Landlord and save LandIord harmless
from all actions, damages, liability and expenses in connection with loss of
life, bodily injury or property damage arising from or out of the occupancy or
use by Tenant of the Leased Premises or any part thereof and the common
facilities within the premises, or occasioned wholly or in part by any act or
omission of Tenant, its agents, contractors, employees, invites or licensees.
Tenant shall store its property in and shall occupy the Leased Premises and
all other portions of the premises at its own risk, and agrees that Landlord
shall not be responsible or liable to Tenant or anyone claiming through Tenant
at any time for any loss or damage to Tenant's merchandise, equipment, fixtures
or other personal property, or to Tenant's business unless such loss or damage
is caused by Landlord's willful act or negligence.
(22) Waiver of Subrogations: Landlord and Tenant hereby waive all fights
of recovery and causes of action which either have or may have or which may
arise against the other, whether caused by negligence, intentional misconduct
or otherwise, for any damage to premises, property or business caused by any
of the perils covered by fire and extended coverage, building and contents
and business interruption insurance, or for which either party may be
reimbursed as a result of insurance coverage affecting any loss suffered by
it; provided, however, that the foregoing waivers shall apply only to the
extent of any recovery made by the parties hereto under any policy of
insurance now or hereafter issued, and further provided that the foregoing
waivers do not invalidate any policy of insurance of the parties, it being
stipulated by the parties that the waivers shall not apply in any case in
which the application would result in the invalidation of any policy of
insurance.
(23) Mortgage and Assignment by Landlord: Landlord shall have the right
to transfer, assign, mortgage and convey in whole or in part the building and
any and all rights of Landlord under this Lease, and nothing herein shall be
construed as a restriction upon Landlord's so doing. This Lease shall be
subject and subordinate to any mortgage or other financing arrangement
hereafter placed upon the leased property and any subsequent renewal,
modification, consolidation, replacement, and extension thereof. Although no
instrument or act on the part of the Tenant shall be necessary to effectuate
such subordination, the Tenant will, nevertheless, execute and deliver such
further instrument subordinating this Lease to the lien of any such mortgages
or other financing arrangements as may be desired by the mortgagee or other
lender. The Tenant hereby appoints the Landlord as attorney-in-fact,
irrevocably, to execute and deliver any such instrument for the Tenant.
(24) Condition of Premises: The Tenant has rented the Leased Premises after
examination in their present condition (unless otherwise specifically agreed
upon in writing) and without any representations on the part of the Landlord or
any of its agents. The act of taking possession shall be always conclusive
evidence that the premises were in satisfactory condition.
A. Improvements by Landlord shall be completed in a good and workmanlike
manner. Landlord shall promptly repair or replace, at Landlord's expense, any
defects in the improvements or damage to the improvements not caused by normal
wear and tear or by the act, fault, or neglect of Tenant, or Tenant's employees,
invites, or agents. Tenant shall promptly report to Landlord any defective
conditions in the premises and known to Tenant which Landlord is required to
repair.
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(25) Tenant shall not conduct "Quitting Business", "Lost- our-Lease",
"Bankruptcy", or other sales of that nature on the premises without the written
consent of the Landlord.
(26) Unrestricted Access for Maintenance: Landlord shall have
unrestricted access to any and all air conditioning and other building
services in the leased premises for the purpose of repairs and maintenance.
Tenant acknowledges that any one or more of such services may be interrupted
or curtailed when necessary by reason of accidents or making of repairs,
alterations or improvements which in the judgment of Landlord are reasonable,
desirable or necessary to be made; or of unavoidable delays, provided,
however, that in each instance or interruption or curtailment or suspension
of such services, Landlord shall exercise diligence to eliminate the cause
for the same.
Except in the case of emergency repairs, Landlord shall give Tenant
reasonable advance notice of any contemplated shutting down of air conditioning
for any portion of the leased premises and will use reasonable efforts to avoid
unnecessary inconvenience to Tenant. (No such interruption or curtailment of
service shall ever be deemed an eviction or disturbance of Tenant's use and
possession to the Leased Premises or any part thereof, or render Landlord liable
to Tenant for damages by abatement of rent or otherwise, or relieve Tenant from
performance of Tenant's obligations under this Lease.
(27) Brokers: Tenant represents and warrants that it has engaged no broker
in connection with this Lease, or, if it has engaged any other broker, is solely
responsible for any commission to such broker.
(28) No Waiver: No provision of this Lease shall be altered, waived, amended
or extended, except in writing signed by both parties. The waiver of one default
or right shall not constitute the waiver of any other. The acceptance of rent
shall not be construed to be a waiver of any breach of condition of this Lease.
(29) Headings: The section and paragraph headings of this Lease are for
convenience only and are in no way to be construed as part of this Lease, or as
a limitation or enlargement of the scope of the particular sections or
paragraphs to which they refer.
(30) Examination of Lease: Submission of this instrument for examination or
signature by Tenant does not constitute a reservation of or option for Lease,
and is not effective as a Lease or otherwise until execution and delivery by
both Landlord and Tenant.
(31) Notices: All notices required or agreed to be given under this Lease
shall be sufficient if given by Landlord by certified mail address to the
Tenant at the Leased Premises; or if given the Landlord by the Tenant by
certified mail address to Landlord at the place where rent is payable.
(32) Rights Reserved by Landlord: Landlord reserves and shall have the
following additional rights:
A. To change the name of the building, or complex as the case may be,
without liability.
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B. To charge Tenant any expenses incurred by Landlord for time and/or
material for work performed in Tenant's premises over and above what this Lease
Agreement specifies.
(33) Penalty--Late Rent Payment: If any rental payment shall be received by
Landlord after the tenth day of the month in which it is due, Tenant shall be
liable for a penalty charge of three percent (3 %) of the monthly rent. Should a
Tenant's rent check be returned by the bank for insufficient funds Tenant shall
pay Landlord a Twenty Dollar ($20) fee. Such penalties shall be cumulative and
shall be due and payable with the next monthly rental payment. Should Landlord
accept these penalties, the said penalties will not limit the Landlord's
remedies found in paragraph 11 of this Lease.
(34) Memorandum of Lease: In the event either Landlord or Tenant determines
to record this Lease, a short-form memorandum of the Lease shall be recorded
with the Beaufort County Recorder at Beaufort, South Carolina, in lieu of the
original lease. Such short-form memorandum shall be executed by both parties but
shall not in any way vary or revoke the terms of this Lease.
(35) Quiet Enjoyment: Landlord covenants with Tenant that the Tenant, having
performed its covenants and agreements shall have quiet and peaceable possession
of the Leased Premises on the terms and conditions provided.
(36) Successors: The provisions of this Lease shall be binding upon and
inure to the benefit of the Landlord and Tenant, respectively, and their
respective successors, assigns, heirs, executors, and administrators. The Tenant
agrees to become the tenant of the Landlord's successor in interest under the
same terms and conditions of its tenancy hereunder.
(37) Attorney's Fees: In the event this Lease is breached by the Tenant,
Tenant shall be liable to Landlord for any attorney's fees and court costs
incurred enforcing any rights available to Landlord by this Lease or by law.
This remedy is non-exclusive and shall be cumulative with and in addition to any
other remedies set forth in this Lease or otherwise provided bv law.
(38) The execution of this lease is conditioned upon the terms of ▇▇▇▇▇
▇▇▇▇▇▇▇'▇ letter dated Aug. 3, 1995 to ▇▇ ▇▇▇▇▇▇ and the terms of said letter
are incorporated into this lease.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of
the date first above written.
/s/▇▇▇▇▇ ▇▇▇▇▇▇▇ President, TearDrop Putter Corp.
----------------------- --------------------------------
TENANT
/s/▇▇▇▇▇▇ ▇▇▇▇▇▇ BY: ▇▇▇▇▇▇ ▇▇▇▇▇▇
--------------------- -----------------------------
LANDLORD
EXHIBIT A
RULES AND REGULATIONS
(THESE RULES AND REGULATIONS HAVE BEEN ADOPTED FOR THE PURPOSE OF INSURING ORDER
AND SAFETY IN THE BUILDING AND OF MAINTAINING THE RIGHTS OF TENANTS AND OWNER.)
(1) No signs, advertisements, or notices of any kind shall be inscribed,
painted or affixed upon any part of said building, and no signs of any kind
shall be permitted on the building, in the corridors, or inside the Leased
Premises where said sign can be seen from the outside without the written
approval of the Landlord.
(2) No additional locks shall be placed upon any door without the written
consent of the Landlord, and all locks and keys shall remain and become the
property, of the Landlord when tenants vacate, and be delivered to Landlord by
Tenant. This rule notwithstanding, Tenant has every right to lock interior
storage and/or vault areas.
(3) No explosives or articles of a dangerous nature shall at any time be
brought into the building and no safes, bulky or heavy articles, or freight
shall be carried into the main entranceways of the building unless arrangements
are first made with Landlord, who prescribe the time and manner for the carrying
in or removal of such articles and also the weight and proper position of sales
and other weighty articles before the same are admitted to the building; the
tenant shall be responsible for all injury to persons or property caused by
installing, maintaining or removing such articles.
(4) Tenants or their employees shall not make disturbing noises; shall keep
no birds or animals in said premises; shall not use said premises for cooking,
lodging or sleeping purposes; nor commit any act upon said premises or any other
parts of said building which Landlord deems would interfere with the rights,
comfort and convenience of other tenants.
(5) Nothing shall be placed on the outside of the building nor on the
windows, window ▇▇▇▇▇ or projections where these areas exist without Landlord's
written approval.
(6) If the Tenant desires to introduce telephone or other wires and
instruments, such installation must be under the direction of the Landlord, and
without such consent and direction, no placing, boring or cutting of wires will
be permitted without Landlord approval.
(7) Tenant will see that all windows and doors are securely locked and water
faucets are turned off before leaving the building. It is agreed that lights on
the outside of the building will stay on.
(8) The Tenant shall be liable for injury or damage caused by the infraction
of any of the above rules and regulations; or for acts causing stoppage in
toilets, etc., damage to the building or its appliances. The Landlord may at
once repair said damage or injury, charging cost of same to Tenant, which amount
shall be part of the rent due for the ensuing month.
(10) The Tenant shall give the Landlord sixty days' written notice of his
intention to vacate said premises, and the Landlord may place and keep a "For
Rent" sign on the door or window of the premises at any time within sixty days
prior to any vacation, and may show the premises to prospective tenants during
such period.
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(11) The Landlord reserves the right to rescind, modify or supplement any
of these rules and to make such other and further reasonable rules and
regulations, which, in the Landlord's judgment, may from time to time be needful
for the safety, care, and cleanliness of the premises, and for the preservation
of good order therein.
(12) In the event the Tenant installs extra heat-producing equipment in the
Leased Premises, thereby overloading the Standard Air Conditioning System, then
Landlord may install additional air conditioning equipment at Tenant's expense.
(13) Tenant agrees that it shall not discriminate upon the basis of
race, color, religion. sex, or national origin in the use and occupancy or in
any sublease or subletting of the Leased Premises.
APPROVED AND ACCEPTED:
/s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇ 8/3/95
----------------- --------
TENANT DATE
10
[LETTERHEAD]
August 3, 1995
VIA FACSIMILE & US MAIL
(▇▇▇) ▇▇▇-▇▇▇▇
▇▇ ▇▇▇▇▇▇
▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: Lease of ▇▇ ▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇:
Thank you for your patience regarding the lease of ▇▇ ▇▇▇ ▇▇▇▇▇▇. For your
information, TearDrop has agreed with Southern Marketing to pay $500 for rent in
the month of July, $1,600 in the month of August and September and $3,200
beginning October 1st. We have paid Southern Marketing directly $500 for July.
We are forwarding rent for August and September directly to you.
I have reviewed the lease in detail and executed the same. However, there are
some clarifications to the lease which I have made below. For simplicity, I have
incorporated these clarifications into the terms of the lease. Of course, my
execution of the enclosed lease is conditioned upon your approving the
clarifications made below. I would appreciate you returning a signed copy of the
lease and a signed copy of this letter to me after you have reviewed them.
1) Paragraph 8, referring to taxes, is understood to mean the tenant is
responsible for personal property taxes levied upon TearDrop's assets
within the building. The landlord remains liable for all property
taxes on the building.
2) I have entered in Paragraph 9 that TearDrop will be marketing, selling
and assembling golf clubs. I have no way of knowing what the assembly
of golf clubs will do to your insurance policy on the building.
However, it is understood that the marketing, selling and assembly of
golf clubs is not a violation of this lease and this specifically
Paragraph 10.
▇▇ ▇▇▇▇▇▇
Page 2
3) Any lien on TearDrop's property is and will subordinate to any bank
providing TearDrop financing now or in the future. In addition, you
will execute any and all documents necessary to subordinate your
interests in TearDrop's property should TearDrop borrow further from
any entity or person. Of course, TearDrop agrees to do the same under
the lease should you decide to sell the building or borrow against it.
4) Under Paragraph 12, if it is necessary to conduct repairs on the
premise, you will make those repairs as fast as reasonably possible
and if the repairs can be done at a time during non-business hours
which will not interfere with our business you will make every effort
to do so. Al, this is important to us as there are some months of the
year when we are extremely busy and other months when we are not and
we must take precautions to make sure we are at capacity during the
busy times. I trust you understand my concerns regarding this issue
and I am sure you would accommodate us anyway.
5) Under Paragraph 13, it is understood that racks or shelving which we
install although they may be affixed to the walls will remain
TearDrop's property. I will be happy to go over our storage plan with
you in detail should you desire.
6) Under Paragraph 17, we will of course obey all laws and regulations.
As I have mentioned to you, I do not think the Hilton Head Island
zoning ordinances is entirely clear with regard to the assembly of
golf clubs. Should Hilton Head Island, Beaufort County or South
Carolina decide that TearDrop is in violation of a zoning ordinance
and TearDrop contests that decision unsuccessfully, TearDrop will be
entitled to terminate the lease and its obligations under the lease.
As you and I discussed under Paragraph 19, this paragraph makes
TearDrop responsible for minor repairs such as switching light bulbs,
or repairing a clogged toilet which TearDrop caused through misuse.
However, repairs to major appliances, electrical equipment, heating
and air
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conditioner equipment, plumbing fixtures etc. remains the
landlord's responsibility. Thus, TearDrop's responsibility
under this paragraph would be small in terms of dollars (eg. under
$100).
7) Under Paragraph 20, regarding subletting, it is a good possibility
that TearDrop will sublet in the future and you have approved this
idea provided that you approve the tenant and the tenant's intended
use. This approval is in your reasonable discretion.
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