Document:

ex10_7a.htm

 EXHIBIT 10.7a 

 ADDITIONAL AGREEMENT 

 to Purchase Agreement dated as of August 3, 2010 (“Purchase Agreement”) 

 THIS ADDITIONAL AGREEMENT (the "Additional Agreement") is made and entered into as of August 13, 2010 (the "Effective Date"), by and between the Emerging Media Holdings, Inc., a Nevada corporation (hereinafter referred to as "EMDH") and a Shareholder trust represented by STIPULA FINANCIAL INC., a BVI Company (hereinafter referred to as "Purchaser"), (collectively the two companies are hereinafter referred to as the "Parties"). 

 The Parties hereby agree to amend the Purchase Agreement as follows: 

 SECTION 1. CLOSING. DATE 

 1.1  The closing ("Closing") under the Purchase Agreement shall occur not later then September 01, 2010 (the "Closing Date"). The Closing will take place on such date (before September 01, 2010) and time, and at such place and in such manner, as may be agreed upon by the Parties. 

 1.2  The Closing will be announced by EMDH. 

 SECTION 2. MISCELLANEOUS 

 This Additional Agreement supersedes the prior provisions regarding the closing date under the Purchase Agreement. 

 IN WITNESS WHEREOF, the corporate parties hereto have caused this Additional Agreement to be executed by their respective officers, hereunto duly authorized, as of the date first-above written. 

ATTEST: Emerging Media Holdings Inc.

 /s/ Iurie Bordian 

 BY: Jude BORDIAN, CEO 

ATTEST: STIPULA FINANCIAL INC.

/s/ Iacob Senseutchi, Attorney-in-fact

BY: Iacob Senseutchi, Attorney-in-factresolution-amendmenttovicech.htm - Generated by SEC Publisher for SEC Filing

 

WRITTEN CONSENT OF

THE BOARD OF

Colony resorts lvh acquisitions, llc

March 17, 2010

The undersigned Members of the Board (collectively, the “Board”) of Colony Resorts LVH Acquisitions, LLC, a Nevada limited liability company (the “Company”) do hereby consent to the adoption of the following resolutions of the Board of the Company and to the taking of the following actions by written consent.

WHEREAS, the Board determined that it is advisable and in the best interest of the Company to renew the Term (as defined therein) of the Vice Chairman Agreement between the Company and Nicholas L. Ribis, dated as of June 18, 2004 (the “Vice Chairman Agreement”) for one (1) year as set forth in Section 2.01 of the Vice Chairman Agreement; and 

            WHEREAS, the Board determined that it is advisable and in the best interest of the Company to amend the Vice Chairman Agreement to delete the automatic renewal provisions set for in Section 2.01 of the Vice Chairman Agreement and to otherwise set forth the expiration date of the Vice Chairman Agreement.

            NOW, THEREFORE, BE IT RESOLVED, that the Vice Chairman Agreement shall be renewed for one (1) additional year in accordance with the terms set forth in Section 2.01 of the Vice Chairman Agreement, provided that the Vice Chairman Agreement is otherwise amended as forth in these resolutions; and be it

FURTHER RESOLVED, that Thomas J. Barrack, Jr. (an “Authorized Person”) be and is hereby authorized, on behalf of the Company, to execute an Amendment to Vice Chairman Agreement, which deletes the automatic renewal provisions of the Vice Chairman Agreement and further provides that the Vice Chairman Agreement shall expire on June 17, 2011, unless extended by mutual written agreement of the parties, subject to earlier termination as otherwise set forth in the Vice Chairman Agreement, the execution thereof by such Authorized Person to be conclusive evidence of such approval by the Board.  The Amendment to the Vice Chairman Agreement shall be in the form set forth in Exhibit A attached hereto, and be it

FURTHER RESOLVED, that the execution by the Authorized Person of any document or instrument authorized by the resolutions or any document or instrument executed in the accomplishment of any action or actions so authorized, is and shall become upon delivery the enforceable and binding act and obligation of the Company, without the necessity of the signature or attestation of any other manager of the Company; and be it

1

 

 

 COMMENTS \* UPPER \* MERGEFORMAT 

FURTHER RESOLVED, that the Authorized Person is authorized, empowered and directed to take such actions as he may deem necessary or convenient to carry out the intent of any and all of the foregoing resolutions in accordance herewith.

This consent may be executed in any number of counterparts and by the undersigned signatories on separate counterparts, each of which when so executed shall be an original, but all of which shall constitute one and the same instrument.  

 

COLONY RESORTS LVH COINVESTMENT

VOTECO, LLC

 

	
By:

	
/s/ Thomas J. Barrack, Jr., Member

        Thomas J. Barrack, Jr., Member

 

 

 

COLONY RESORTS LVH VOTECO, LLC

 

	
By:

	
/s/ Thomas J. Barrack, Jr., Sole Member

        Thomas J. Barrack, Jr., Sole Member

 

 

 

WH/LVH MANAGERS VOTECO, LLC

 

	
By:

	
/s/ Steven Angel, Member

        Steven Angel, Member

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Resolutions re:  Amendment to Vice Chairman Agreement]

2

 

Exhibit A

 

AMENDMENT TO VICE CHAIRMAN AGREEMENT

            This Amendment to Vice Chairman Agreement (“Addendum”) is made and entered into as of this 17th day of March, 2010, by and between Colony Resorts LVH Acquisitions, LLC, a Nevada limited liability company (the “Company”) and Nicholas L. Ribis (“Ribis”).

RECITALS

            WHEREAS, the Company and Ribis entered into a Vice Chairman Agreement dated as of June 18, 2004 (the “Agreement”), which sets forth the terms of Ribis’ services to the Company; and

            WHEREAS, the parties desire to amend the Term of the Agreement and to otherwise modify certain provisions of the Agreement.

            NOW THEREFORE, in consideration of the mutual promises, covenants and agreements contained herein, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

            1.         Paragraph 2.01 of the Agreement shall be amended by deleting the automatic renewal provisions of the Term and to expressly provide that the Term of the Agreement shall expire on June 17, 2011, unless extended by mutual written agreement of the parties, subject to earlier termination in accordance with Articles III, IV and VI of the Agreement.

            2.         Other than the amendment to the Agreement as provided herein, all other terms and conditions of the Agreement shall remain in full force and effect.  In the event any terms of the Agreement are inconsistent or contrary to this Amendment, the terms of this Amendment shall control.  All capitalized terms used herein shall have the same meaning as set forth in the Agreement.

 

                                                            COLONY RESORTS LVH ACQUISITIONS, LLC

 

                                                            

	
By:

	
/s/ Thomas J. Barrack, Jr., Chairman

                                                                      Thomas J. Barrack, Jr., Chairman

 

                                                            

                                                

 

                                                            

	
By:

	
/s/ Nicholas L. Ribis

                                                                      Nicholas L. RibisEX-10.1

CHANGE IN TERMS AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No	 	Call/Coll	 	Account	 	Officer	 	Initials
	$4,000,000.00	 	08-15-2010	 	08-15-2012	 	XXXXXXXX	 	500/10	 	XXXXXX	 	RDH	 	 
	References in the boxes above are for Lender’s use only and do not limit the applicability

	document to any particular loan or item. Any item above containing “***” has been omitted due

	to text length limitations.
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 
	Borrower:
	 	VCG Holding Corp.

Lowrie Management, LLLP

390 Union Blvd. #540

Lakewood, CO 80228-1557

	 	Lender:
	 	Citywide Banks

PO Box 128

Aurora, CO 80040-0128

(303) 365-3600

Principal Amount: $4,000,000.00 Date of Agreement: August 15, 2010

DESCRIPTION OF EXISTING INDEBTEDENESS. Original Promissory Note in the amount of $4,000,000.00
dated June 29, 2007.

DESCRIPTION OF COLLATERAL. 302,400 Shares of VCG Holing Corp. Common Stock, Certificate Number
00227, Cusip Number 91821k 10 1.

200,000 Shares of VCG Holding Corp. Common Stock, Certificate Number 01120, Cusip Number 91821k 10
1.

1,585,000 Shares of VCG Holding Corp. Common Stock, Certificate Number 00198, Cusip Number 918k 10
1.

826,907 Shares of VCG Holding Corp. Common Stock, Certificate Number 01192, Cusip Number 91821k 10
1.

Assignment of Life Insurance Policy Number XXXXXXXX in the amount of $15,000,000.00 on the Life of
Troy H. Lowrie issued by Security Life of Denver Insurance Company.

P&A Select Strategy Fund, LP.

P&A Select Multi-Sector Fund II, LP

DESCRIPTION OF CHANGE IN TERMS. Effective August 15, 2010 the term of the Note, Pledge Agreements
and Business Loan Agreement is extended to August 15, 2012.

$40,000.00 fee shall be due 08/15/2010 and 08/15/2011.

PROMISE TO PAY. VCG Holding Corp.; and Lowrie Management, LLLP (“Borrower”) jointly and severally
promise to pay to Citywide Banks (“Lender”), or order, in lawful money of the United States of
America, the principal amount of Four Million & 00/100 Dollars ($4,000,000.00) or so much as may be
outstanding, together with interest on the unpaid principal balance of each advance. Interest shall
be calculated from the date of each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan in one payment of all outstanding principal plus all accrued
unpaid interest on August 15, 2012. In addition, Borrower will pay regular monthly payments of all
accrued unpaid interest due as of each payment date, beginning September 15, 2010, with all
subsequent interest payments to be due on the same day of each month after that. Unless otherwise
agreed or required by applicable law, payments will be applied to fist to any accrued unpaid
interest; then to principal; then to any unpaid collection costs; and then to any late charges.
Borrower will pay Lender at Lender’s address shown above or at such other place as Lender may
designate in writing.

VARIABLE INTEREST RATE. This interest rate on this loan is subject to change from time to time
based on changes in an independent index which is the The Prime Rate as Published in the Wall
Street Journal (the “Index”). The Index is not necessarily the lowest rate charged by Lender on its
Loans. IT the Index becomes unavailable during the term of this Loan, Lender may designate a
substitute index after notifying Borrower. Lender will tell Borrower the current Index rate upon
Borrower’s request. The interest rate change will not occur more often than each Day. Borrower
understands that Lender may make loans based on other rates as well. The Index currently is 3.250%
per annum. Interest on the unpaid principal balance of this loan will be calculated as described in
the “INTEREST CALCULATION METHOD” paragraph using a rate of 0.500 percentage points over the Index,
adjusted if necessary for any minimum and maximum rate limitations described below, resulting in an
initial rate of 6.000% per annum based on a year of 360 days. NOTICE: Under no circumstances will
the interest rate on this loan be less than 6.000% per annum or more than the maximum rate allowed
by applicable law.

INTEREST CALCULATION METHOD. Interest on this loan is computed on a 365/360 basis; that is, by
applying the ratio of interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal balance is outstanding.
All interest payable under this loan is computed using this method.

PREPAYMENT; MINIMUM INTEREST CHARGE. Borrower agrees that all loan fees and other prepaid finance
charges are earned fully as of the date of the loan and will not be subject to refund upon early
payment (whether voluntary or as a result of default), except as otherwise required by law. In any
event, even upon full prepayment of this Agreement, Borrower understands that Lender is entitled to
a minimum interest charge of $25.00. Other than Borrower’s obligation to pay any minimum interest
charge, Borrower may pay without penalty all or a portion of the amount owed earlier than it is
due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s
obligation to continue to make payments of accrued unpaid interest. Rather, early payments will
reduce the principal balance due. Borrower agrees not to send Lender payments marked “paid in
full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may accept
it without losing any of Lender’s rights under this Agreement, and Borrower will remain obligated
to pay any further amount owed to Lender. All written communications concerning disputed amounts,
including any check or other payment instrument that indicates that the payment constitutes
“payment in full” of the amount owed or that is tendered with other conditions or limitations or as
full satisfaction of a disputed amount must be mailed or delivered to: Citywide Banks, PO Box 128,
Aurora, CO 80040-0128.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the regularly
scheduled payment.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, at Lender’s
option, and if permitted by applicable law, Lender may add any unpaid accrued interest to principal
and such sum will bear interest therefrom until paid at the rate provided in this Agreement
(including any increased rate). Upon default, the interest rate on this loan shall be increased to
21.000% per annum based on a year of 360 days. However, in no event will the interest rate exceed
the maximum interest rate limitations under applicable law.

DEFAULT. Each of the following shall constitute an event of default under this Agreement:

Payment Default. Borrower fails to make any payment when due under the Indebtedness.

Other Defaults. Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Agreement or in any of the related documents or to
comply with or to perform ay term, obligation covenant or condition contained in any other
agreement between Lender and Borrower.

Default in Favor of Third Parties. Any guarantor or Borrower defaults under any loan,
extension of credit, security agreement, purchase or sales agreement, or any other agreement,
in favor of any other creditor or person that may materially affect any of guarantor’s or
Borrower’s property or Borrower’s ability to perform their respective obligations under this
Agreement or any of the Related Documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower’s behalf under this Agreement or the Related Documents is false or
misleading in any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.

Insolvency. The dissolution or termination of Borrower’s existence as a going business or the
death of any partner, the insolvency of Borrower, the appointment of a receiver for any part
of Borrower’s property, any assignment for the benefit of creditors, any type of creditor
workout, r the commencement of any proceeding under any bankruptcy or insolvency laws by or
against Borrower.

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any creditor
of Borrower or by any governmental agency against any collateral securing the Indebtedness.
This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with
Lender. However, this Event of Default shall not apply if there is a good faith dispute by
Borrower as to the validity or reasonableness of the claim which is the basis of the creditor
or forfeiture proceeding an if Borrower gives Lender written notice of the creditor or
forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor of
forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an
adequate reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor
of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or
disputes the validity of, or liability under, any Guaranty of the Indebtedness evidenced by
this Note.

Events Affecting General Partner of Borrower. Any of the preceding events occurs with respect
to any general partner of Borrower or any general partner dies or becomes incompetent.

Change in Ownership. The resignation or expulsion of any general partner with an ownership
interest of twenty-five percent (25%) or more in Borrower. Any change in ownership of
twenty-five percent (25%) or more of the common stock of Borrower.

Adverse Change. A material adverse change occurs in Borrower’s financial condition, or Lender
believes the prospect of payment or performance or this Indebtedness is impaired.

Insecurity. Lender in good faith believes itself insecure.

LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this
Agreement and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collect this Agreement if
Borrower does not pay. Borrower will pay Lender the reasonable costs of such collection. This
includes, subject to any limits under applicable law, Lender’s attorneys’ fees and Lender’s legal
expenses, whether or not there is a lawsuit, including without limitation attorneys’ fees and legal
expenses for bankruptcy proceedings (include efforts to modify or vacate any automatic stay or
injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court
costs, in addition to all other sums provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action,
proceeding, or counterclaim brought by either Lender or Borrower against the other.

GOVERNING LAW. This Agreement will be governed by federal law applicable to Lender and, to the
extent not preempted by federal law, the laws of the State of Colorado without regard to its
conflicts of law provisions. This Agreement has been accepted by Lender in the State of Colorado.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in
all Borrower’s accounts with Lender (whether in checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open
in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for
which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the indebtedness against any and all such
accounts.

LINE OF CREDIT. This Agreement evidences a revolving line of credit. Advances under this Agreement
may be requested either orally or in writing by Borrower or as provided in this paragraph. All oral
requests shall be confirmed in writing on the day of the request, on forms acceptable to Lender.
All communications, instructions, or directions by telephone or otherwise to Lender are to be
directed to Lender’s office shown above. The following person or persons are authorized to request
advances and authorize payments under the line of credit until Lender receives from Borrower, at
Lender’s address shown above, written notice of revocation of such authority; Troy H. Lowrie,
Chairman & CEO of VCG Holding Corp.; Tenicia Bradley, Secretary of VCG Holding Corp.; Troy H.
Lowrie, President of Lowrie Investment Management, Inc., General Partner of Lowrie Management,
LLLP. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the
instructions of an authorized person, or (B) credited to any of Borrower’s accounts with Lender.
The unpaid principal balance owing on this Agreement at any time may be evidenced by endorsements
on this Agreement or by Lender’s internal records, including daily computer print-outs.

CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original
obligation or obligations, including all agreements evidenced or securing the obligation(s), remain
unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender’s
right to strict performance of the obligations(s) as changed, nor obligate Lender to make any
further changes in terms. Nothing in this Agreement will constitute a satisfaction of the
obligation(s). It is the intention of the Lender to retain as liable parties all makers and
endorsers of the original obligation(s), including accommodation parties, unless a party is
expressly released by Lender in writing. Any maker or endorser, including accommodation makers,
will not be released by virtue of this Agreement. If any person who signed the original obligation
does not sign the Agreement below, then all persons signing below acknowledge that this Agreement
is given conditionally, based on the representation to Lender that the non-signing party consents
to the changes and provisions of this Agreement or otherwise wil not be released by it. This waiver
does not only to any initial extension, modification or release, but also to all such subsequent
actions.

CROSS COLLATERALIZATION. This note is cross collateralized with loan # XXXXXXXXX by Life Insurance
Policy Number XXXXXXXXX & P&A Select & Multi Funds.

PRIOR NOTE. Original Promissory Note in the amount of $4,000,000.00 dated June 29, 2007.

SUCCESSORS AND ASSIGNS. Subject to any limitations stated in this Agreement on transfer of
Borrower’s interest, this Agreement shall be binding upon and inure to the benefit of the parties,
their successors and assigns. If ownership of the Collateral becomes vested in a person other than
Borrower, Lender, without notice to Borrower, may deal with Borrower’s successors with reference to
this Agreement and the Indebtedness by way of forbearance or extension without releasing Borrower
from the obligations of this Agreement or liability under the Indebtedness.

NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if
we report inaccurate information about your account(s) to a consumer reporting agency. Your written
notice describing the specific inaccuracy(ies) should be sent to us at the following address:
Citywide Banks Operations Center PO Box 128 Aurora, CO 80040-0128.

MISCELLANEOUS PROVISIONS. If any part of this Agreement cannot be enforced, this fact will not
affect the rest of the Agreement. Lender may delay or forgo enforcing any of its rights or remedies
under this Agreement without losing them. Each Borrower understands and agrees that, with or
without notice to Borrower, Lender may with respect to any other Borrower (a) make one or more
additional secured or unsecured loans or otherwise extend additional credit; (b) alter, compromise,
renew, extend, accelerate, or otherwise change one or more times the time for payment or other
terms of any indebtedness, including increases and decreases of the rate of interest on the
indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release
any security, with or without the substitution of new collateral; (d) apply such security and
direct the order or manner of sale thereof, including without limitation, any non-judicial sale
permitted by the terms of the controlling security agreements, as Lender in its discretion may
determine; (e) release, substitute, agree not to sue, or deal with any one or more of Borrower’s
sureties, or other guarantors on any terms or in any manner Lender may choose; (f) determine how,
when and what application of payments and credits shall be made on any other indebtedness owing by
such other Borrower. Borrower and any other person who signs, guarantees or endorses this
Agreement, to the extent allowed by law, waive presentment, demand for payment, and notice of
dishonor. Upon any change in the terms of this Agreement, and unless otherwise expressly stated in
writing, no party who signs this Agreement, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Lender may renew or extend
(repeatedly and for any length of time) this loan or release from any party, partner, or guarantor
or collateral; or impair, fail to realize upon or perfect Lender’s security interest in the
collateral; and take any other action deemed necessary by Lender without the consent of or notice
to anyone. All such parties also agree that Lender may modify this loan without the consent of or
notice to anyone other than the party with whom the modification is made. The obligations under
this Agreement are joint and several.

PRIOR TO SIGNING THIS AGREEMENT, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS
AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF
THE AGREEMENT.

BORROWER:

VCG HOLDING CORP.

	 	 	 
	By: /s/ Troy H. Lowrie

	 	By: /s/ Tenicia Bradley
	 

	 	 
	Troy H. Lowrie, Chairman & CEO of VCG Holding Corp.

	 	Tenicia Bradley, Secretary of VCG Holding Corp.

	 	 	LOWRIE MANAGEMENT, LLLP

	 	 	LOWRIE INVESTMENT MANAGEMENT, INC., General Partner of Lowrie Management, LLLP

	 	 	By: /s/ Troy H. Lowrie

	 	 	Troy H. Lowrie, President of Lowrie Investment Management, Inc.

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