ASSIGNMENT OF
LEASE
This Assignment of Lease (this
“Assignment”) is made and entered into effective on May
16, 2008 (the “Effective Date”), by and between
ProLink Solutions, LLC, d/b/a ProLink Capital (the
“Assignor,” or “ProLink”) and FOC Financial
Limited Partnership (the “Assignee”).
Background
Assignor is the lessor under that certain Lease
Agreement dated April 3, 2008, by and between Assignor and PACAF, a
copy of which is attached to this Agreement as Exhibit
“A” (the “Lease”).
Under the Terms of the Lease, the Golf Course
and Assignor have entered into and Assignor has agreed to provide
installation, service, support and maintenance of the ProLink
System during the term of the Lease.
Assignor desires to assign the Assignor’s
rights under the Lease to Assignee on the terms and conditions set
forth in this Assignment.
Now, therefore, in consideration of the sum of
One Million Seven Hundred Sixty One Thousand Dollars ($1,761,000)
(Purchase Price), and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:
Terms
1. Background . The parties agree and acknowledge that the
Background section is true in all respects and shall be
incorporated into this Agreement by reference.
2. Assignment . Assignor hereby assigns and transfers to
Assignee, Assignor’s rights under the Lease, including, but
not limited to the following: (i) to receive all of the fees and
payments due under the Lease and pay for play amount, commencing
upon the Commencement Date (as defined in the Lease); (ii) to
enforce the Lease in the event that Prolink fails to do so on
Assignees behalf; (iii) to bill and collect all fees from the Golf
Course in the event that Prolink fails to do so on Assignees
behalf. (iv) to receive the proceeds of the insurance required
under the Lease or otherwise provided to cover loss of the ProLink
System which is the subject of the Lease and liability thereunder;
(v) to consent to any assignment by the Golf Course, and to recover
any damages for the Golf Course’s breach of the Lease in the
event that Prolink fails to do so on Assignees behalf;
(collectively, the “Lease Rights”).
Notwithstanding anything herein to the contrary,
Assignor and/or ProLink Solutions, hereby acknowledge and agree
that Assignor and/or ProLink Solutions retains all obligations of
the manufacturer under the Lease other than those specifically
assigned to the Assignee and agrees to fulfill said obligations
under the Lease, including, but not limited to operating,
maintaining, repairing and replacing the ProLink System, including
installation of the System according to the terms of the Agreement,
defending patent suits against the Golf Course, providing software
and hardware upgrades to the ProLink System in accordance with the
Service Agreement, removing the ProLink System if authorized under
the Service Agreement and approved by Assignee. Provided ProLink
Solutions is fulfilling its obligations under the Lease, a fee of
$20.00 per month, per cart, shall be paid to ProLink Solutions
following receipt of the monthly lease payment by
Assignee.
3. Indemnification . Assignor does hereby indemnify and hold
Assignee harmless from any liability claims relative to the Lease,
except those arising out of Assignee’s gross negligence or
willful misconduct.
Assignor does hereby covenant and agree that
Assignor shall, upon Assignee’s request, enforce the rights
of Assignee and/or Assignor under the Lease, defend any claims
against Assignee or Assignor under the Lease, and defend any patent
suits against the Golf Course, Assignee and/or Assignor, all at
Assignor’s sole expense; however, Assignor shall consult with
Assignee and obtain Assignee’s consent, which shall not be
unreasonably withheld, prior to finalizing any action which may
affect Assignee. Assignor does hereby covenant and agree to pay any
expenses incurred by Assignee, including attorneys’ fees,
paralegals’ fees, legal assistants’ fees and costs, in
enforcing the rights of Assignee and/or Assignor under the Lease,
defending any claims against Assignee or Assignor under the Lease,
and defending any patent suits against the Golf Course, Assignee
and/or Assignor.
4. Lease Payments . The parties acknowledge and agree that
effective as of the date of this Assignment, all future payments
due under the Lease shall be payable for the benefit of Assignee.
On or before the 7 th day of each month, ProLink will (i) provide
Assignee a report identifying the number of rounds played at the
Golf Course and the applicable usage fee per round (ii) send an
invoice to the Golf Course for the fees due for the preceding month
and (iii) upon written request of Assignee cause the future
payments due to be remitted to an account designated by the
Assignee.
5. Payment Allocation . The parties agree that the fees collected
monthly will be allocated as follows: (i) all fees collected during
the twelve month period commencing July1, 2008 through June 30,
2009 will be paid first to Assignee up to $499,864 (Priority Annual
Payment) then second to Prolink for service and maintenance fees in
an amount equal to $20 per cart per month; any excess will be
shared equally between Assignor and Assignee.(ii) All fees
collected during all subsequent twelve month period commencing July
1, 2009 will be paid first to Assignee in an amount equal $499,864
plus any unpaid Priority Annual Payment from any previous twelve
month period then second to Prolink for any unpaid service and
maintenance fees in previous twelve month period plus an amount
equal to $20 per cart per month for the current twelve month
period; any excess will be shared equally between Assignor and
Assignee. Prolink will provide the Assignee with a monthly
statement computing the Assignees Unrecovered Investment. For
purposes of this Agreement “Unrecovered Investment”
will be equal to the Purchase Price less all net payments received
by the Assignee plus a return equal to 15% PA.
6. Remarketing . In the Event that the Lease is cancelled by the
Golf Course and any units are returned by the Golf Course, Prolink
agrees to remarket this equipment to it’s next customer
purchasing used equipment and to remit the proceeds of the sale to
the Assignee up to the amount of its un recovered investment.
Prolink also agrees that it will remarket any equipment returned
after 28 months following the date of this Agreement
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