From: Gary S. Gevisser
Sent: Friday, May 18, 2007 10:03 AM PT
To: Dave Clark - Operator of Seacrest-Waterfront Cafe
Cc: rest;
James.Sunderland@risdonhosegood.com
Subject: COMPLIANCE WITH LEASE
Dave,
Your
decision to ignore the provision of the lease to pay the insurance costs “on
demand” is a breach of covenant.
A breach of
this or any of the other covenants in the Lease gives us the right to apply to
the Court for the Lease to be forfeited, not to mention what is owed under the
percentage rent part of the Lease is further failure to be in compliance.
The Lease
requires you, the Tenant, to use the property for the purposes of a restaurant.
If the property is now being used as primarily a bar, then that would be in
breach of this covenant.
Presumably,
some food is still served and it is a question of degree as to whether the café
can still be described as a restaurant.
Your
decision to change the name from Seacrest to Waterfront may not be a direct
breach of any of the covenants in the Lease but why not at least let us know
while sharing with us such inconsequential facts such as not being able to get
a camera battery to share with us the new look of Seacrest-Waterfront?
You are to
immediately pay all monies due directly to my account at Bank of America and
when letting me know such monies have been wire transferred to provide me with
a detailed breakdown of the percentage rent calculation.
Furthermore,
I have spoken with Mike, the retired banker up the street, with a view to
either me and/or my agents spending a couple days in Minehead towards the end
of the month or early June and for you to make your books available for audit.
I consider
your actions a lack of honesty.