EXHIBIT 10.11
 
Consilium Corporate Recovery Master Fund, LTD.
c/o Consilium Investment Management LLC
3101 N. Federal Highway, Suite 502
Fort Lauderdale, FL 33306
 
June 11, 2014
 
VIA ELECTRONIC MAIL
 
Mr. Sjoerd de Jong
352 West 123rd Street
Apt. 2
New York, NY 10027
 
Re: Loans to Wodka, LLC
 
Sjoerd de Jong:
 
Reference is made to (i) that certain Restructuring Agreement, dated as of the
date hereof (the “Restructuring Agreement”), by and among PANACHE BEVERAGE INC.,
a Delaware corporation (the “Borrower”), ALIBI NYC, LLC, a New York limited
liability company (“Alibi”), PANACHE USA, LLC, a New York limited liability
company (“Panache USA”), ALCHEMY INTERNATIONAL, LLC, a New York limited
liability company (“Alchemy”), PANACHE, LLC, a New York limited liability
company (“Panache LLC”), and PANACHE DISTILLERY, LLC, a Florida limited
liability company (“Panache Distillery”, and together with the Borrower, Alibi,
Panache USA, Alchemy and Panache LLC, collectively, the “Panache Parties”),
James Dale (“JD”), Agata Podedworny (“AP”), Sjoerd de Jong (“SDJ”, and together
with JD and AP, collectively, the “Shareholders”), and CONSILIUM CORPORATE
RECOVERY MASTER FUND, LTD., a limited company existing under the laws of the
Cayman Islands (individually and as a lender to and equity owner in the Panache
Parties “Consilium”), and (ii) those certain loans made by SDJ to Wodka, LLC, a
New York limited liability company (“Wodka”) in an aggregate original principal
amount of $39,688 documented by a book entry on Wodka’s general ledger (the “SDJ
Wodka Loans”). Capitalized terms used herein without definition shall have the
meanings ascribed to such terms in the Restructuring Agreement.
 
Pursuant to the Restructuring Agreement and certain related documents,
instruments and agreements, you have agreed (i) that in lieu of Consilium
exercising remedies under the SDJ Pledge Agreement, the SDJ Shares shall be
transferred to Consilium or its designee, (ii) to terminate and cancel the SDJ
Warrants, (iii) to ratify your resignation from any and all positions that you
held with respect to the Panache Parties and (iv) to accept the conditions on
the terms and repayment of the SDJ Wodka Loans as set forth below.
 
On the date hereof, Wodka is issuing to SDJ that certain promissory note
attached hereto as Exhibit A to evidence the SDJ Wodka Loans.
 
 
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Notwithstanding any oral or written agreement regarding the terms of the SDJ
Wodka Loans to the contrary, from and after the date hereof the SDJ Wodka Loans
shall not bear interest and no payments of principal, interest, fees of any
other amount shall be permitted to be paid thereon; provided, however, that (i)
at such time as Borrower’s consolidated cash flow from operations on account of
any fiscal quarter exceeds $79,376.00 (an “Applicable Quarter”) (as evidenced by
Borrower’s quarterly financial statements for such Applicable Quarter contained
in Borrower’s Quarterly Report on Form 10-Q for such fiscal quarter), and (ii)
the effectiveness of an amendment to Wodka’s operating agreement that would
permit repayment of the SDJ Wodka Loans, Wodka within thirty (30) days of the
preceding conditions being satisfied shall pay, and SDJ may receive, payment of
all outstanding principal on account of the SDJ Wodka Loans.
 
[Remainder of Page Left Blank Intentionally]
 
 
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Please affirm your receipt and acknowledgement to the foregoing by signing below
in the space indicated and returning a copy to Consilium by electronic mail
followed by original signatures by overnight courier.
 

  Sincerely,           CONSILIUM CORPORATE RECOVERY MASTER FUND, LTD.          
 
By:
/s/ CHARLES T. CASSEL, III     Name: Charles T. Cassel, III     Title:
Authorized Person  

 

  Acknowledged and Agreed:          
By:
/s/ SJOERD DE JONG     Name: Sjoerd de Jong  

 

  WODKA, LLC          
By:
/s/ MICHAEL ROMER        Name: Michael Romer     Title: Interim CEO  

 
 
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Exhibit A
 
Promissory Note
 
Attached
 
 
 
 
 
 
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