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Exhibit 10(vi)
JACKSON ROSCOE MOTORSPORTS, LLC
5419 CAYMAN DRIVE
SUITE 100
CARMEL, INDIANA 46033
March 5, 2001
Sharp Racing, Inc.
8957 Harris Road
Concord, North Carolina 28027
RE: LEASE OF FACILITY LOCATED AT 8957 HARRIS ROAD, CONCORD, NORTH CAROLINA
28027
Dear Mr. Sharp:
This letter of intent ("Letter") sets forth a non-binding understanding and
proposal for the lease by Jackson Roscoe Motorsports, LLC or its nominee or
designee ("Tenant") of the Leased Premises, as defined below, from Sharp Racing,
Inc. ("Landlord") on and subject to the terms set forth below:
1. PROPERTY.
Tenant shall lease from Landlord the space, land and related
improvements thereto (all of which are collectively referred to as the "Leased
Premises") consisting of approximately five thousand two hundred (5,200) square
feet of usable shop space and approximately eight hundred (800) square feet of
usable office space and that certain warehouse building with a street address of
8957 HARRIS ROAD, CONCORD, NORTH CAROLINA 28027 (hereinafter referred to as the
"Building") located on the real property described on EXHIBIT A attached hereto
and made a part hereof (hereinafter referred to as the "Land") together with the
right to use, in common with other tenants of the Building, the common areas and
racing tools, machinery, equipment and transporter (the "Equipment"). The Land,
Building and common areas, all improvements and the Equipment are herein
collectively referred to as the "Property".
2. RENT.
(a) During the initial term or any extension term of the
lease the rental for the Property shall be Five Thousand Dollars ($5,000.00) per
month;
(b) The lease shall be an absolute gross lease to the Tenant
with the Landlord responsible for any and all costs and expenses relating to the
Leased Premises. Landlord, at its sole cost and expense, shall pay, when due,
all ground rents, real estate taxes and assessments and all utility charges
levied or assessed against the Property.
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Mr. Eddie Sharp
March 5, 2001
Page 2
3. TERM.
(a) The commencement of the lease is contingent upon Tenant
raising, obtaining possession of, and obtaining unrestricted use of equity
capital in the amount of at least Ten Million Dollars ($10,000,000.00) and
Tenant and Landlord entering into a mutually-agreeable form of lease;
(b) The initial term of the lease shall be a period of one
(1) year;
(c) Tenant shall have the right to extend the initial term of
the lease for three (3) consecutive periods of one (1) year each, upon the same
terms and conditions.
4. USE.
Tenant shall use the Leased Premises for conducting Tenant's
operations as an automobile racing team, including, without limitation,
building, repairing and maintaining racing automobiles, storage and office uses
and for any other lawful purposes as may be incidental to such uses.
5. REPAIRS AND MAINTENANCE.
(a) Landlord shall, at Landlord's sole cost and expense,
perform all necessary or appropriate maintenance, repairs and replacements, to
the Property, except for repairs made necessary by the misuse or neglect of
Tenant, or Tenant's agents that are not covered by any policy of insurance
carried by Landlord;
(b) Tenant shall, at Tenant's sole cost and expense, make
repairs to the Property that may be required due solely to the misuse of Tenant.
6. SERVICES.
(a) As part of the consideration for the payment of Rent by
Tenant, Landlord shall furnish, supply and properly maintain at all times the
following services and utilities without charge to Tenant:
(1) Heating, ventilating and air-conditioning at all
times as required for the comfortable use and occupancy of the Leased
Premises, including operation and maintenance of such heating,
ventilating and air conditioning; and
(2) Water, sewer and electricity required by Tenant
in Tenant's use of the Leased Premises; and
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Mr. Eddie Sharp
March 5, 2001
Page 3
(b) Tenant shall have the right directly to contract, at
Tenant's sole cost and expense, with one or more utility providers or services
for utility facilities, equipment and/or services to the Leased Premises.
7. INSURANCE.
(a) Tenant shall, at Tenant's expense, obtain
and keep in force during the term of this Lease a policy of commercial general
liability insurance; with such endorsements and coverage limits typically
carried for such Premises and Uses;
(b) Landlord shall, at Landlord's sole cost
and expense, obtain and keep in force during the term of this Lease an
occurrence-based policy of commercial general liability insurance and so-called
"special form" policy or policies of property insurance, with such endorsements
and coverage limits typically carried for such Premises and Uses.
Very truly yours,
JACKSON ROSCOE MOTORSPORTS, LLC
By: /s/ J. Roe Hitchcock
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Print Name: J. Roe Hitchcock
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Its: Managing Member
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The terms of the foregoing letter of intent are hereby accepted and agreed to
this 7 day of March, 2001.
SHARP RACING, INC.
By: /s/ Eddie Sharp
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Print Name: Eddie Sharp
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Its: Vice President
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