Document:

PROMISSORY NOTE

$30,000,000.00 October 5, 2016

FOR VALUE RECEIVED, MVP Real Estate Holdings, LLC and MVP REIT II Operating Partnership, LP (the "Lead Borrowers") and the Subsidiary Borrowers set forth on Exhibit A attached hereto and made a part hereof (collectively, the "Subsidiary Borrowers"; the Subsidiary Borrowers together with the Lead Borrowers, individually and collectively, jointly and severally, "Maker") promises to pay without offset or counterclaim to the order of KeyBank National Association, ("Payee"), the principal amount equal to the lesser of (x) THIRTY MILLION AND 00/100 DOLLARS ($30,000,000.00) or (y) the outstanding amount advanced by Payee as a Loan (or Loans) under the Credit Agreement (as hereinafter defined), payable in accordance with the terms of the Credit Agreement.

Maker also promises to pay interest on the unpaid principal amount of this Note (this "Note") at the rates and at the times which shall be determined in accordance with the provisions of that certain Credit Agreement dated as of even date herewith, among Maker, the Lenders named therein, and KeyBank National Association, as Administrative Agent for itself and the Lenders (as hereafter amended, supplemented or otherwise modified from time to time, the "Credit Agreement").  Capitalized terms used herein without definition shall have the meanings set forth in the Credit Agreement.

Payments hereunder shall be made to the Agent for the Payee at 127 Public Square, Cleveland, Ohio 44114-1306, or at such other address as Agent may designate from time to time, or made by wire transfer in accordance with wiring instructions provided by the Administrative Agent.

Subject to the terms and provisions of the Credit Agreement, amounts borrowed may be repaid and reborrowed at any time prior to the termination of the Availability Period.  No Lender shall have any obligation to make a Loan to the extent such Loan would cause the sum of the total Credit Exposures to exceed the total Maximum Loan Available Amount.

This Note is subject to (a) mandatory prepayment and (b) prepayment at the option of the Maker, as provided in the Credit Agreement.

This Note is issued pursuant to the Credit Agreement and is entitled to the benefits of the Credit Agreement, reference to which is hereby made for a more complete statement of the terms and conditions under which the Loan evidenced hereby is made and is to be repaid.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  MAKER AGREES THAT JURISDICTION AND VENUE FOR ANY ACTION REGARDING THIS NOTE SHALL BE AS SET FORTH IN THE CREDIT AGREEMENT.

Upon the occurrence of an Event of Default, the unpaid balance of the principal amount of this Note may become, or may be declared to be, due and payable in the manner, upon the conditions and with the effect provided in the Credit Agreement.

Maker promises to pay all fees, costs and expenses incurred in the collection and enforcement of this Note in accordance with the terms of the Credit Agreement.  Maker and any endorser of this Note hereby consents to renewals and extensions of time at or after the maturity hereof, without notice, and hereby waive diligence, presentment, protest, demand and notice of every kind (except such notices as may be expressly required under the Credit Agreement or the other Loan Documents) and, to the full extent permitted by law, the right to plead any statute of limitations as a defense to any demand hereunder.

Whenever possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Note.

[Signature Pages Follow]

IN WITNESS WHEREOF, Maker has caused this Note to be executed and delivered by its duly authorized officer, as of the day and year first written above.

	
MVP REAL ESTATE HOLDINGS, LLC,

 a Nevada limited liability company

 

By: MVP Realty Advisors, LLC, a Nevada limited liability company, its Manager

 

By: ________________________

Name: Michael Shustek

Title:  Manager

 

 

	
MVP REIT II OPERATING PARTNERSHIP, L.P., a Delaware limited partnership

 

By: MVP REIT II, INC., a Maryland corporation, its General Partner

 

By: ________________________

Name: Michael Shustek

Title:  Chief Executive Officer

 

	
MVP MILWAUKEE WELLS LLC,

 a Nevada limited liability company

 

By: MVP Realty Advisors, LLC, a Nevada limited liability company, its Manager

 

By: ________________________

Name: Michael Shustek

Title: Manager

 

 

	
MVP DENVER 1935 SHERMAN, LLC,

 a Nevada limited liability company

 

By: MVP Realty Advisors, LLC, a Nevada limited liability company, its Manager

 

By: ________________________

Name: Michael Shustek

Title: Manager

 

 

	
MVP DENVER SHERMAN, LLC,

 a Nevada limited liability company

 

By: MVP Realty Advisors, LLC, a Nevada limited liability company, its Manager

 

By: ________________________

Name: Michael Shustek

Title: Manager

 

 

	
MVP MILWAUKEE ARENA LOT, LLC,

 a Delaware limited liability company

 

By: MVP Realty Advisors, LLC, a Nevada limited liability company, its Manager

 

By: ________________________

Name: Michael Shustek

Title: Manager

 

 

	
MVP ST. LOUIS WASHINGTON, LLC,

 a Delaware limited liability company

 

By: MVP Realty Advisors, LLC, a Nevada limited liability company, its Manager

 

By: ________________________

Name: Michael Shustek

Title: Manager

 

 

	
MVP ST. PAUL HOLIDAY GARAGE, LLC,

 a Delaware limited liability company

 

By: MVP Realty Advisors, LLC, a Nevada limited liability company, its Manager

 

By: ________________________

Name: Michael Shustek

Title: Manager

 

 

	
WHITE FRONT GARAGE PARTNERS, LLC, a Tennessee limited liability company

 

By: MVP Realty Advisors, LLC, a Nevada limited liability company, its Manager

 

By: ________________________

Name: Michael Shustek

Title: Manager

 

 

	
CHAPMAN PROPERTIES, LLC,

 a Tennessee limited liability company

 

By: MVP Realty Advisors, LLC, a Nevada limited liability company, its Manager

 

By: ________________________

Name: Michael Shustek

Title: Manager

 

EXHIBIT A

SUBSIDIARY BORROWERS

	
MVP MILWAUKEE WELLS LLC, a Nevada limited liability company

	
MVP DENVER 1935 SHERMAN, LLC, a Nevada limited liability company

	
MVP DENVER SHERMAN, LLC, a Nevada limited liability company

	
MVP MILWAUKEE ARENA LOT, LLC, a Delaware limited liability company

	
MVP ST. LOUIS WASHINGTON, LLC, a Delaware limited liability company

	
MVP ST. PAUL HOLIDAY GARAGE, LLC, a Delaware limited liability company

	
WHITE FRONT GARAGE PARTNERS, LLC, a Tennessee limited liability company

	
CHAPMAN PROPERTIES, LLC, a Tennessee limited liability company

2036523.2pkay_ex101.htm

EXHIBIT 10.1
 
AMENDMENT NUMBER 3
TO
EMPLOYMENT AGREEMENT
 
AMENDMENT NUMBER 3 TO EMPLOYMENT AGREEMENT, dated as of October 4, 2016 (this “Amendment”), by and between PEEKAY BOUTIQUES, INC., a Nevada corporation (“Peekay”), and JANET MATHEWS, an individual (“Mathews”). Each of Peekay and Mathews are referred to in this Amendment individually as a “Party” and collectively as the “Parties.” Capitalized terms used, but not otherwise defined, herein have the meanings ascribed to such terms in the Employment Agreement (as hereinafter defined).
 
RECITALS
 
A. Peekay and Mathews are parties to that certain Employment Agreement, dated December 31, 2014, as amended by Amendment No. 1 thereto, dated December 29, 2015 and Amendment No. 2 thereto, dated March 1, 2016 (the “Employment Agreement”). 
 
B. Mathews has performed extensive services to the benefit of the Company and its stakeholders in connection with, among other things, exploring potential restructuring options for the Company (the “Restructuring Related Services”). 
 
C. The Company, by and through its board of directors, has determined to provide a cash bonus of $100,000 (the “Bonus”) to Mathews pursuant to the terms of this Amendment in consideration for the Restructuring Related Services, and Mathews has agreed to accept such Bonus in full and complete satisfaction of all claims to entitlement of a bonus under the Employment Agreement or otherwise.
 
D. Section 7(c) of the Employment Agreement provides that the Employment Agreement may be amended only with the written consent of each of the Parties. The Parties desire to amend the Employment Agreement to modify Section 3(i) in order to provide for the payment of the Bonus to Mathews. This Amendment evidences the written consent of each of the Parties to the changes to the Employment Agreement as set forth herein and, along with the recitals hereto, shall become part of the Employment Agreement as if fully set forth therein.
 
AGREEMENT
 
NOW, THEREFORE, the parties hereto, intending to be legally bound and in consideration of the mutual agreements and covenants contained herein and in the Agreement, hereby agree to amend the Employment Agreement as follows:
 
1. Amendment to Section 3(i). Section 3(i) of the Employment Agreement is amended and restated in its entirety to read as follows:
 
“(i) Bonus. Mathews has earned a bonus of $100,000 which shall be paid to Mathews by the Company, in cash, as follows: (a) Seventy Five Thousand Dollars ($75,000) on the date that is three business days after the date on which this Amendment has been fully executed by the Parties and (b) Twenty Five Thousand Dollars ($25,000) on or before March 31, 2017, provided that Mathews remains employed by the Company pursuant to this Employment Agreement on that date.”
    	 
	1

	

	 

 
2. Full and Complete Satisfaction of Bonus. Mathewshereby acknowledges and agrees that payment of the Bonus pursuant to the terms of this Amendment constitutes full and complete satisfaction of all claims to entitlement of a bonus under the Employment Agreement or otherwise.
 
3. Employment Agreement Remains in Force. Except as expressly set forth in this Amendment, the Employment Agreement remains unmodified and in full force and effect.
 
4. Counterparts; Facsimile Execution. This Amendment may be executed in any number of counterparts and by the parties hereto on separate counterparts but all such counterparts shall together constitute one and the same instrument. Facsimile execution and delivery of this Amendment is legal valid and binding execution and delivery for all purposes.
 
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first set forth above. 
 
	 	PEEKAY BOUTIQUES, INC
	
	 	 	 	 
	 	By:	/s/ Ellery W. Roberts	
	 
	Name:
	Ellery W. Roberts	 
	 	Title:	Chairman	 
	 	 	 	 
	 
	JANET MATHEWS
	 

	 
	 
	 
	 

	 
	By:
	/s/ Janet Mathews
	 

 
 
	2

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