Document:

exhibit10_1.htm

 

Loan Agreement

 

Dated as of June 14, 2010

 

	
By and between:

	
HOMI Industries Ltd, an Israeli company, #512805193, whose address for the purposes of this Agreement shall be Gav-Yam Centre, Building #3,  3rd Floor, 9 Shenkar Street, Herzliya Pituach 46725, Israel; Fax: +972-9-9728626, e-mail: jackronnel@my-homi.com, with a mandatory copy to Reif & Reif Law Offices, 17-4 Yitzchak Rabin Road, Bet Shemesh 99585, Israel, Fax: +972-2-9997993, e-mail: Mail@ReifLaw.com (“HOMI”);

 

	
And:

	
Ilan Bahry, I.D. 032033136, email: Ilan@GlobalHorizonsGroup.com

 

	
  

	
Amir Schechtman, I.D. 038299624, email: amirshechner@walla.com; and

 

	
  

	
Oded Yeoshoua, I.D. 27373026, email: Oded@GlobalHorizonsGroup.com

 

	
  

	
all of whose address for fhe purposes of this Agreement shall be c/o Ilan Bahry, 44 Balfour Street, Tel-Aviv 65226 (individually and collectively, the “Lender”);

 

	
Whereas:

	
HOMI owns a turnkey computerized minibar system, including 363 HOMI® computerized minibars, a central unit and a license to HOMI® software, whose installation is scheduled for July 2010 at the Royal Beach Hotel, Eilat (the “Hotel” and the “Minibar System”, respectively), and which HOMI’s affiliate, HOMI Israel Ltd (the “Affiliate”), which is under common control as HOMI, will then operate under an outsource operation agreement which has been signed and entered into between the Affiliate and the Hotel (the “Operation” and the “Outsource Agreement”, respectively); and

 

	
Whereas:

	
HOMI would like to take a loan from Lender, and Lender would like to grant a loan to HOMI, which will be repaid in accordance with and subject to the terms and conditions set forth herein;

 

 

Therefore, the parties have made condition and agreed as follows:

 

	
1.  

	
The Loan

 

 

	
1.1  

	
Upon the terms and conditions set forth in this Agreement, Lender agrees to loan to HOMI the principal amount of NIS 671,550  (six hundred seventy one thousand five hundred fifty New Israeli Shekels) (the “Loan”), being equivalent to  NIS 1,850 for each minibar in the Minibar System.

 

	
1.2  

	
All rights and obligations of Lender pursuant to this Agreement shall be allocated as follows: Ilan Bahry: 45%; Amir Schechtman: 30%; Oded Yeoshoua (25%).

 

	
1.3  

	
The Loan will be made available to HOMI by May 31st, 2010  (hereinafter: the “Loan Date”), by means of SWIFT wire transfer to HOMI’s account No. 725000/52 at Bank Leumi, branch No. 809. IBAN: IL690108090000072500052, either in US Dollars or, in Lender’s discretion, in New Israeli Shekels according to the Dollar/Shekel Representative Rate of Exchange last published prior to the transfer directions being given by Lender.

 

	
2.  

	
Repayment

 

 

	
2.1  

	
HOMI undertakes to repay the entire Loan, in the manner set forth below.

 

	
2.2  

	
On a monthly basis, for each month of the Operation, commencing as of the first calendar month following the commencement of the Operation:

 

	
a.  

	
HOMI will deliver to Lender a copy of its Affiliate’s monthly invoices to the Hotel in respect of the full amount of monthly net revenues from the Operation, including from any mineral water program which may at some time be managed by the Affiliate at the Hotel (“HOMI’s Invoice to the Hotel”, and the “Water Program”, respectively), which the Hotel is obliged to pay to the Affiliate under the Outsource Agreement for that month (“Net Revenues from Hotel”), usually by the 10th of each calendar month. For these calculations, a Water Program will be deemed part of the Minibar System and part of the Operation.

 

 

 

2

Loan Agreement - Royal Beach

HOMI - Bahry/Schechtman/Yeoshoua

Execution Copy

 

 

	
b.  

	
From the sum equal to the Net Revenues from Hotel, HOMI will deduct: (i) the cost of goods being sold via the Minibar System, with no margin to HOMI, (ii) Operations’ direct labour costs, (iii) maintenance fees of NIS 0.23 per minibar per day, and (iv) a management fee of 8% of Net Revenues from Hotel (collectively, “Operational Payments”). The aforementioned maintenance fees are all-inclusive, and in return HOMI will take whatever action is needed, including parts and labour, to maintain the Minibar System in normal working condition.

 

	
c.  

	
If Net Revenues from Hotel, as collected by HOMI’s Affiliate, exceed Operational Payments by at least NIS 16,788 then HOMI will pay to Lender a sum equal to 60% of all such excess, towards repayment of the Loan.

 

	
d.  

	
If Net Revenues from Hotel, as collected by HOMI’s Affiliate, exceed Operational Payments by more NIS 10,073 but less than NIS 16,788, then HOMI will pay to Lender exactly NIS10,073 towards repayment of the Loan.

 

	
e.  

	
If Net Revenues from Hotel, as collected by HOMI’s Affiliate, exceed Operational Payments by less than NIS 10,073, then HOMI will pay to Lender a sum equal to 100% of all such excess, towards repayment of the Loan.

 

	
f.  

	
If Net Revenues from Hotel, as collected by HOMI’s Affiliate, do not exceed Operational Payments, then no payment will be made to Lender for that month.

 

	
g.  

	
Payments to Lender as set forth above will be effected on the 30th of the calendar month following the month for which payment is being made, by means of swift wire transfer to Lender’s joint account No 351325, at the Lincoln Branch (No. 772) of Bank HaPoalim (No. 12), IBAN IL780127720000000351325. All payments made to such account shall be deemed payments to Lender under this Agreement, and Lender alone shall be responsible for allocation and distribution of payments amongst Lender.

 

	
2.3  

	
The provisions of Sections ‎2.2c, ‎2.2d and ‎2.2e above shall only apply for the first 9 (nine) years following commencement of Operation (the “Initial Term”). Thereafter, HOMI will pay to Lender a sum equal to 60% of the entire amount by which Net Revenues from Hotel shall exceed Operational Payments, if at all.

 

	
2.4  

	
A sample spreadsheet showing key elements of the mechanism for implementation of the provisions of this Section ‎2 above, is attached hereto as Exhibit A’.

 

	
2.5  

	
HOMI shall continue to effect the payments to Lender pursuant to Sections ‎2.2 and ‎2.3 above, for as long as the Operation continues in respect of the Minibar System. Initially, all payments made to Lender hereunder shall go towards repayment of the principal of the Loan. If and when the aggregate total of such repayments exceeds the principal of the Loan, such repayments shall be deemed interest on the Loan.

 

	
2.6  

	
If the Outsource Agreement is terminated during the Initial Term and the Minibar System removed from the Hotel, then HOMI will, at its own cost, reinstall the Minibar System at one or more other hotels at which the Minibar System will have equivalent revenue earning capacity as in the Hotel, as soon as possible and in any event within 6 months of its removal from the Hotel, and the period between said removal and reinstallation shall not be included in the Initial Term for the purposes of Section ‎2.3 above. If reinstallation was not performed within 3 months, and if Hotel paid to HOMI, or its affiliate, $180 per minibar for removal of the Minibar System from the Hotel, then HOMI shall pay to Lender a sum equal to $30 per minibar so removed from the Hotel, in addition to all other payments pursuant to this Agreement.

 

	
2.7  

	
If reinstallation was not performed within said 6 months, then HOMI shall be obliged, at any time during the following 3 months, to transfer the fixed charge being granted to Lender under Section ‎5.1 below, to other installed minibars, of equivalent value and revenue earning capacity, and such other minibars will then form the basis for the computations as set forth in Sections ‎2.2 and ‎2.3 above, provided that, for said 3 months, HOMI shall in any event repay to Lender 50% of the amount specified in Section ‎2.2e above.

 

 

3

Loan Agreement - Royal Beach

HOMI - Bahry/Schechtman/Yeoshoua

Execution Copy

 

 

	
2.8  

	
If the Outsource Agreement is terminated during the Initial Term, in the context of the Hotel’s deciding to exercise its option to rent the Units from the Affiliate, with the Hotel operating the Units itself, then, for the purposes of Section ‎2.2 above: “Net Revenues” will be defined as the rental fees paid by the Hotel, and the rental of the Units will be deemed the “Operation”, and the remaining provisions of this Agreement shall continue to apply, on this basis.

 

	
2.9  

	
If the Outsource Agreement is terminated at the end of its third year, in the context of a purchase of the Minibar System by the Hotel, then HOMI will pay to Lender 75% of the payment it receives from the Hotel in respect of said purchase of the Minibar System, and this, together with all repayments already made to Lender prior to that time, will constitute full and final repayment of the Loan and all accrued Interest.

 

	
3.  

	
Specified Purpose of Loan

 

 

	
3.1  

	
The Parties hereby confirm and agree that HOMI requested the Loan for the sole purpose of using all of said Loan to finance its activity in the ordinary course of business, including making financing available to one or more of its subsidiaries and/or affiliates, to finance their activity in the ordinary course of business (the “Specified Purpose”).

 

	
3.2  

	
HOMI hereby undertakes to use the Loan solely for the Specified Purpose and not to use any part of the Loan for any purpose other than the Specified Purpose.

 

	
3.3  

	
HOMI hereby recognizes and acknowledges that Lender’s consent to make the Loan to HOMI in accordance with the terms hereof is inter alia subject to and in reliance upon HOMI’s undertaking as set forth in Section ‎3.2 above, which is a fundamental condition of this Agreement.

 

	
4.  

	
Events of Default

 

 

The occurrence and continuation of any of the following events shall be considered an Event of Default upon the occurrence of which the entire unpaid balance of the Loan, and all reasonable costs of collection, including reasonable attorney fees and expenses, shall become immediately due and payable:

 

	
4.1  

	
HOMI shall fail to make any payment which it is obliged to make under the terms of this Agreement and such failure is not fully remedied within thirty (30) days of HOMI’s receiving written notice from Lender of the occurrence thereof;

 

	
4.2  

	
for the avoidance of doubt it is hereby stipulated and emphasized that it is the fundamental obligation and undertaking of HOMI to repay the Loan, in its entirety, and failure by HOMI to repay the Loan in its entirety shall be considered an Event of Default, regardless of the reason for such failure;

 

	
4.3  

	
HOMI shall default in the performance of any material covenant or obligation contained herein and such default is not remedied within thirty (30) days of HOMI’s receiving written notice from Lender of the occurrence thereof;

 

	
4.4  

	
HOMI uses and/or attempts and/or permits use of the Loan, or any part thereof, for any purpose other than the Specified Purpose;

 

	
4.5  

	
any representation or warranty made by or on behalf of HOMI to Lender, howsoever in connection with the Loan and/or this Agreement, shall at any time prove to have been materially incorrect or misleading;

 

	
4.6  

	
any judgment materially affecting the ability of HOMI to repay the Loan and pay the Interest shall be entered against HOMI or any attachment, levy or execution against a substantial portion of its properties shall remain unpaid, or shall not be released, discharged, dismissed, suspended or stayed for a period of thirty (30) days or more after its entry, issue or levy, as the case may be;

 

 

4

Loan Agreement - Royal Beach

HOMI - Bahry/Schechtman/Yeoshoua

Execution Copy

 

 

	
4.7  

	
any proceedings seeking to declare HOMI bankrupt, or insolvent, or seeking liquidation, winding up, reorganization, arrangement with creditors, composition of debts or any other similar proceedings shall be initiated against HOMI, and such proceeding shall not be dismissed within thirty (30) days;

 

	
4.8  

	
any event shall occur materially adversely affecting the ability of HOMI to repay the Loan under the terms of this Agreement.

 

	
5.  

	
Security and Collateral

 

 

	
5.1  

	
As security and collateral for the full and timely repayment of the Loan pursuant to this Agreement, HOMI will, promptly upon receipt of the Loan, encumber the Minibar System by registering a first degree fixed charge over the Minibar System, in favour of the Lender and will take such action as is required in order to give this fixed charge full effect, including by means of its being reported and registered with the appropriate authorities, with a copy to Lender. This fixed charge will remain in force until the Loan has been repaid in full, at which time Lender will cooperate with HOMI in the cancellation and removal of the fixed charge.

 

	
5.2  

	
Upon the occurrence of an Event of Default, and for as long as said Event of Default remains uncured, Lender may, without prejudice to any and all other rights, remedies and/or relief to which Lender may be entitled by law, exercise and realize any and all security interests and/or collateral granted to Lender by HOMI pursuant to the terms hereof, including the security and collateral as set forth in Section ‎5.1 above, without in any way derogating from HOMI’s obligation to pay to Lender any and all sums still owed by HOMI to Lender pursuant to the terms hereof even after said actions by the Lender.

 

	
5.3  

	
HOMI hereby recognizes, acknowledges and agrees that Lender may, at any particular time, hold various forms of security and/or collateral in respect of the Loan, whether received from HOMI or from any third party, including the security and collateral as set forth in Section ‎5.1 above (all such security and collateral being termed hereinafter, the “Collateral”), and that Lender’s rights herein with respect to the security and collateral as set forth in Section ‎5.1 above shall remain in full force and effect regardless of, and in addition to, any other Collateral then held by Lender, and Lender shall have full and absolute discretion as to the order and/or nature in which it exercises and/or realizes its rights in the Collateral, if at all, and as to the timing of any such exercise and/or realization, and HOMI hereby waives any and all claims, demands and/or actions, of any kind whatsoever, against Lender, in this regard.

 

	
5.4  

	
HOMI undertakes, from time to time forthwith upon a Lender’s demand, in order to guarantee Lender’s rights with respect to any current and/or and future creditors, to take any action and sign any instrument and/or form and/or agreement as per Lender’s request, in the event Lender and/or HOMI believes that any laws by which it or its assets are bound require such action or signature in order to accord full validity to the Collateral, against the whole world.

 

	
5.5  

	
If HOMI and/or the Affiliate cease to operate as a solvent, going concern, and Lender exercises its rights in the Collateral, thereby taking title in the Minibar System, then HOMI shall cause Affiliate to grant its consent to an assignment of the Outsource Agreement, to Lender.

 

	
6.  

	
HOMI’s General Covenants

 

 

	
6.1  

	
HOMI shall keep proper records and books of account in accordance with generally accepted accounting principles consistently applied, and shall maintain, preserve and keep all of its properties and assets in good working order and condition, subject to ordinary wear and tear.

 

	
6.2  

	
HOMI shall conduct its affairs in such manner as is appropriate for the subsidiary of a public company whose shares are traded on the New York OTCBB, and in accordance with all laws and regulations by which it is bound.

 

	
7.  

	
Representations and Warranties

 

 

HOMI hereby represents and warrants to Lender as follows:

 

	
7.1  

	
that it is duly organized and existing under the laws of the jurisdiction in which it was incorporated, with the requisite corporate or other power to own and operate its properties and assets, and to carry on its business as presently conducted and to execute and perform its obligations under this Agreement;

 

 

5

Loan Agreement - Royal Beach

HOMI - Bahry/Schechtman/Yeoshoua

Execution Copy

 

 

	
7.2  

	
that this Agreement is valid and binding upon it and it is bound by it and obliged to act in accordance with its terms; and that the execution and performance by it of this Agreement, and compliance therewith, and the consummation of the transactions contemplated by this Agreement will not result in any violation of and will not conflict with, or result in a breach of any of the terms of, or constitute a default under, any document, other obligation, law, regulation or order to which it is or will be party or by which it is or will be bound;

 

	
7.3  

	
that all actions on its part and on the part of its directors, required for the authorization, execution, and performance by it, of this Agreement, and the consummation of all the transactions contemplated herein, have been obtained, or that they will be obtained within 30 days of the date hereof.

 

	
8.  

	
Miscellaneous

 

 

Lender shall be entitled, at any time and without requiring HOMI’s consent, to assign all or any part of his rights under this Agreement, to any other entity. HOMI shall not be entitled to assign all or any part of its rights and/or obligations under this Agreement, except to a subsidiary or affiliate, without Lender’s advance written consent. No Amendment to this Agreement, or any part thereof, shall be valid or binding upon the Parties unless drawn up in writing and signed by both Parties. The Preamble, and any Appendices, Exhibits or Schedules to this Agreement, constitute an integral part hereof. The headings used in this Agreement are for convenience of reference only and will not be used in the construction of this Agreement. Any use of the word “including” in this Agreement shall be construed as meaning “including, without limitation”, unless expressly stipulated to the contrary. All pronouns contained herein, and any variations thereof, shall be deemed equally to refer to the masculine, feminine or neutral, singular or plural, as the context may require. No principle of construction against the drafter shall apply in any way to this Agreement or any of the Exhibits, Appendices and/or Schedules attached hereto. No failure or delay on the part of any Party in exercising any right and/or remedy to which it may be entitled hereunder and/or by law shall operate as a waiver by that Party of any right whatsoever. No waiver of any right under this Agreement shall be deemed as a waiver of any further or future right hereunder, whether or not such right is the same kind of right as was waived in a previous instance. In case any provision of the Agreement shall be declared invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and shall continue in full force and effect. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and replaces any previous agreements between the Parties, if at all, whether written or verbal, pertaining to any of the subject-matter hereof. This Agreement shall be deemed to have been made and concluded in Israel and the construction, validity and performance of this Agreement shall be governed by the laws of Israel without giving effect to the conflicts of law principles thereunder. By their execution hereof, the parties irrevocably agree to submit all disputes arising hereunder to the jurisdiction of the competent courts of Tel-Aviv, Israel. Notices sent by one Party to the other under this Agreement will be sent by registered mail to the addresses specified in the Preamble, delivered by hand, transmitted by fax, or sent by e-mail or other electronic means of communication and will be deemed to have reached their destination within 3 days of being deposited with the Post Office for dispatch as registered mail (7 days in the case of air mail), upon actual delivery when delivered by hand, and upon receipt of the recipient’s confirmation of receipt when sent by fax, e-mail or other electronic means of communication. This Agreement may be executed in any number of counterparts, in original or by facsimile, and each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute one and the same agreement.

 

In witness whereof the Parties have executed this

 

Loan Agreement on the date first above written:

	  	
_______________________________

HOMI Industries Ltd

	  
	
____________________________

Ilan Barhy

	
____________________________

Amir Schechtman

	
____________________________

Oded Yeoshouarobk_ex101.htm

EXHIBIT 10.1

 

 

Luxury Yachts International, Inc.

A Florida Corporation

OFFER TO PURCHASE AND SALES AGREEMENT

                                                                                                   

LUXURY YACHTS INTERNATIONAL, INC.  IS HEREBY AUTHORIZED

TO OFFER THE SUM OF

$ 3,250,000.00 (GROSS)

 Three Million  Two Hundred Fifty Thousand and No/100 U.S. FUNDS And No/100 Dollars

FOR THE VESSEL: “BIG EASY” (see Specifications Schedule A)

OFFICIAL NUMBER: USCG DOC # 998517   YEAR: 1993

 GENERAL DESCRIPTION/TYPE: 226’ 1200 Passenger

THE BUYER: Rotate Black,  Inc. and/or Assigns submits the following offer on behalf of an entity to be formed

The SELLER: Cruise Holdings II, LLC

The Buyer agrees and understands and submits this offer as follows:

1.  Understands that the BIG EASY (the “Vessel”) is offered in good faith subject to the Seller’s acceptance of this offer and approval of this offer by the US Bankruptcy Court for the Southern District of Florida (the “Bankruptcy Court”) and that said offer is binding on Seller only when accepted in writing by the Seller, and an order is entered by the Bankruptcy Court authorizing the Seller to sell the vessel to the Buyer. This offer is tendered with the understanding that it will remain irrevocable upon delivery of the full $275,000 Deposit (the "Deposit") described below.  The $275,000 deposit shall be non-refundable, unless the Bankruptcy Court fails to authorize the Seller to sell the vessel to the Buyer, Seller refuses to close or is unable to provide good title to the Vessel.

2.  Understands that the Buyer and his guest(s) will board the vessels for Survey at their own risk and will hold this brokerage and the owner(s) harmless and free from any and all claims of injury or damage which may occur to them, and that the Buyer hereby assumes the responsibility of notifying his guest(s) of this condition.

3.  Agrees that the Buyer shall pay for all engine inspections, Haul-Outs, Surveys and miscellaneous services authorized by the Buyer whether the Buyer purchases the vessel or not.  Buyer shall also be liable for all repairs that the Buyer orders to be made even if for any reason he is unable to complete this transaction.  Buyer shall have the right to appoint the surveyor of his choice. Notwithstanding the forgoing, the Buyer shall not order any repairs of the vessel unless and until the Buyer closes on the sale of the vessel pursuant to an order of the Bankruptcy Court.

4.  Understands that after the Sea Trial and /or Survey, the Buyer may reject vessel if not satisfied with same, and that his deposit will be promptly refunded less any expenses incurred on his behalf. This provision is not applicable.  Buyer will accept as is.  Buyer Initials ________________________.

5.  Knows of and agrees to pay STATE USE TAX, when due, to Dept. of Revenue for the state of Florida, if applicable.

6.   Knows of and agrees to pay his prorated share of property taxes, computed from the date of the sale to the first of January of the following year, if applicable.

7.   Understands that in the event the Buyer delivers its deposit and thereafter fails to pay the balance of the purchase price, Buyer agrees that the Seller may retain any deposit as liquidated damages for the Buyer’s breach of this agreement.. The Buyer will give his final acceptance of the vessel by delivery of the Deposit as described in paragraph 1 above, and therefore the Deposit will be non-refundable immediately, if the Buyer fails to close after the conditions listed in paragraph 1 are met.

 

Buyer’s Initial's: ________________Seller’s Initial's: ___________________ Agent’s Initial's: ________________

 

2495 Cat Cay Lane, Fort Lauderdale, Florida 33312

Phone: 954-584-1888 Fax: 954-581-9898

www.luxuryyachtsinternational.com

 

  

1

  

 

Luxury Yachts International, Inc.

A Florida Corporation

PAGE 2 OFFER TO PURCHASE  FOR VESSEL

“BIG EASY” OFFICIAL NUMBERS: USCG DOC# 998517

8.  This document constitutes the offer from the Buyer to the Seller. Upon acceptance by Seller, this offer shall be deemed an “Asset Purchase Agreement” and shall be filed with an appropriate motion with the Bankruptcy Court..  There are no other duties, obligations, liabilities, or warranties, implied or otherwise.  All agreements or representations not incorporated in this writing are void and have no effect.  This Offer can only be modified by a written modification agreed to, accepted and signed by SELLER, BUYER and Luxury Yachts International, Inc.

9.  Should any dispute arise between Buyer and Seller and Luxury Yachts International, Inc., the parties shall be bound by the decisions of the Bankruptcy Court.

10. OTHER CONDITIONS: 

Method of payment: $275,000.00 Deposit wire transferred to the trust account of Trustee/Seller’s counsel, Bilzin Sumberg Baena Price & Axelrod LLP (“BSBPA Trust Account”), plus

 

(a) execution and delivery of a Promissory Note in the original principal amount of $2,975,000 (the "Note") made by Seller in favor of Buyer for 12 months at 14.5% interest, with monthly interest only payments of $35,000, a maturity date on the first anniversary of the date of execution, and containing such other terms and conditions as are customary for promissory notes of this type in Miami-Dade and Broward Counties, Florida (See Schedule B) and secured by the Preferred Ship Mortgage (as defined below);

 

(b) execution and delivery of a Preferred Ship Mortgage executed by the Buyer in favor of the Seller which shall encumber the Vessel and which shall be in form reasonably acceptable to the Seller (See Schedule C) (the "Preferred Ship Mortgage");

 

(c) execution and delivery of an unsecured promissory note (the “Consulting Note”) payable to the Seller, representing advance payment for consulting services, which Consulting Note shall be in the original principal amount of $600,000, shall bear interest at the rate of 14.5% per annum simple interest, shall be payable commencing on the 15th day of the month subsequent to the month in which the Vessel opens for gaming business and on the 15th of each month thereafter until maturity, with each such monthly payment equal to 2% of the monthly gross gaming revenue generated, from the operation of the Vessel, based upon the gross gaming revenue for the month prior to the month of the subject payment, as reported to the Mississippi Gaming Commission or other applicable governmental authority, and maturing on the first anniversary of the dale that the Vessel is opened by the Buyer for gaming business, provided, however, that, in the event that the Vessel does not open for gaming business on or before June 13, 2011, the maturity date shall be June 11, 2012 (see Schedule D);

 

(d) John Paulsen shall execute and deliver a Personal Guarantee of the Promissory Note and of the Consulting Note (see Schedule E).

 

Schedules B, C, D, and E shall be referred to as the "Closing Documents".

 

This offer shall remain open until June 11, 2010 at 5:00 P.M. (EDT) and is accompanied by a DEPOSIT OF $275,000.00 by Wire Transfer by June 4, 2009 5:00 P.M. EDT.

FINAL CLOSING: The closing (the “Closing”) of the purchase and sale of the Vessel shall take place on or after (a) approval of this Agreement by the Bankruptcy Court, (b) payment of the Deposit to the Chapter 11 Trustee, and (c) execution and delivery of the Closing Documents, but in no event shall the Closing occur later than June 11, 2010.

 

 

Buyer’s Initial's: ________________Seller’s Initial's: ___________________ Agent’s Initial's: ________________

 

2495 Cat Cay Lane, Fort Lauderdale, Florida 33312

Phone: 954-584-1888 Fax: 954-581-9898

www.luxuryyachtsinternational.com

  

2

  

 

Luxury Yachts International, Inc.

A Florida Corporation

 

	
11.  

	
Other Conditions: THE VESSEL IS BEING SOLD “AS IS, WHERE IS. Buyer understands and agrees that entry of an order by the Bankruptcy Court approving the sale of the vessel is required in order for the sale to be final; pending the entry of such order, the deposit referenced above will be held in the BSBPA Trust Account.  At least two business days prior to closing, Seller will provide Buyer with a copy of the order the Bankruptcy Court authorizing the sale of the vessel to Buyer, free and clear of all liens, claims and encumbrances, which liens, claims and encumbrances shall attach to the proceeds of sale of the vessel.  Buyer shall cause the Deposit to be wired into the Attorney Trust Account of Bilzin Sumberg Baena Price & Axelrod LLP ("BSBPA") by close of business on Friday, June 4, 2010.  Upon approval of this Agreement by the Bankruptcy Court, the Deposit shall become a non-refundable deposit, the Chapter 11 Trustee shall be authorized to disburse the Deposit as permitted by the Bankruptcy Court and the Closing shall occur on or before June 11, 2010.  At Closing, Buyer will insure the vessel for $5,000,000 with the Estate, or its successors or assigns, as Loss Payee. After the Closing, the Buyer shall move the Vessel no later than June 15, 2010 from its current berthing to an alternate, reasonable location mutually agreeable by the Parties. Buyer will keep the Chapter 11 Trustee informed of the Vessel’s location and when it will be moved to Gulfport, Mississippi. Moreover, Seller will cause all contractors hired to work on the Vessel, up through and including June 1, 2010, and Buyer will cause all contractors hired to work on the Vessel from and after June 1, 2010, to sign a “hold harmless” agreement with respect to any and all maritime liens.

	
12.  

	
This document constitutes the entire Offer between the parties.  There are no other duties, obligations, liabilities, or warranties, implied or otherwise. All agreements or representations not incorporated in this writing are void and have no effect.  This Agreement can only be modified by written modification agreed to, accepted and signed by BUYER, SELLER and LUXURY YACHTS INTERNATIONAL, INC.

	
13.  

	
In the event the vessel is sold to the Buyer, the Seller shall be under obligation for the payment of $100,000 commission to LUXURY YACHTS INTERNATIONAL, INC. and shall be paid from the proceeds of the sale upon closing.

	
14.  

	
Default:  In the event of a default under the Note or the Consulting Note, default interest shall accrue at the rate of 20% per annum simple interest.  The Note and the Consulting Note shall be cross-defaulted.

	
15.  

	
Closing Documents Govern:  In the event of a conflict between this Agreement and any of the Closing Documents, the terms and conditions of the Closing Documents shall govern.

	
16.  

	
As consideration for the foregoing, Buyer shall cause the Deposit to be wired into the Attorney Trust Account of BSBPA by close of business on Friday, June 4, 2010.  Upon approval of this Offer by the Bankruptcy Court, the Deposit shall become a non-refundable deposit.  At Closing, Buyer will insure the vessel for $5,000,000 with the Trustee as Loss Payee.  After Closing, the Vessel will be moved by Buyer no later than June 15, 2010 from its current berthing to an alternate, reasonable location mutually agreeable by the parties..

	
17.  

	
The Parties’ respective rights and obligations with respect to the previous offer dated January 29, 2010 are terminated and superseded by the terms of this Offer.  Upon approval by the Bankruptcy Court of this Offer, delivery of the Deposit to the Trust Account of BSBPA, and execution and delivery by Buyer of the Closing Documents, Buyer, and John Paulsen, individually and in his capacity as a representative of Buyer, shall be released from any and all obligations due and owing, or as shall become due and owing, by operation of the Promissory Note and Unconditional Guaranty, true and correct copies of which are attached hereto.  Upon such approval, the original Promissory Note and the original Unconditional guaranty shall be marked “canceled” by the Chapter 11 Trustee and delivered to John Paulsen.

 

  

Buyer’s Initial's: ________________Seller’s Initial's: ___________________ Agent’s Initial's: ________________

 

2495 Cat Cay Lane, Fort Lauderdale, Florida 33312

Phone: 954-584-1888 Fax: 954-581-9898

www.luxuryyachtsinternational.com

 

  

3

  

 

Luxury Yachts International, Inc.

A Florida Corporation

 

	
18.  

	
This Offer is tendered with the intention of the Buyer as becoming recognized, after the delivery of its deposit, as the purchaser of the Vessel pursuant to an order entered by the Bankruptcy Court with respect to the sale of the vessel, and, notwithstanding anything to the contrary set forth herein, (a) is not contingent upon (i)financing, (ii) the completion of unperformed Due Diligence, (iii) the obtaining of approvals from the Buyer’s board of directors or other internal approvals or consents, or (iv) the absence of any material adverse change; (b) is subject to approval by the Bankruptcy Court; (c) provides for a final closing no later than June 11, 2010; (d) is irrevocable upon delivery of Buyer’s Deposit and as set forth in Paragraph 1; and (c) provides for a $275,000 Deposit which deposit shall be non-refundable upon delivery and that shall be forfeited as liquidated damages in the event that the Buyer defaults, breaches the terms of this Offer, or breaches the terms of any sale order that may be entered by the Bankruptcy Court.

	
19.  

	
In the event that the Bankruptcy Court fails to approve this Offer by June 11, 2010, this Offer shall be null and void and the Deposit shall be promptly returned to the Buyer.  The Chapter 11 Trustee agrees to seek approval by the Bankruptcy Court of this offer upon his execution of this Offer and Buyer agrees to support such approval in any manner reasonably requested by the Chapter 11 Trustee or his counsel.

	
20.  

	
The Chapter 11 Trustee and Buyer further agree that (i) the Bankruptcy Court shall have exclusive jurisdiction to determine any disputes arising from this offer, (ii) this Offer may not be amended, altered or modified except by a writing executed by each of the Chapter 11 Trustee and Buyer (iii) this offer is binding upon Buyer, the Chapter 11 Trustee and Cruise Holdings II, LLC and will inure to benefit of each and to the respective successors and permitted assigns of each; (iv) this Offer represents the entire understand of the Chapter 11 Trustee and Buyer with respect of the subject matter of this Offer and amends all prior agreements, arrangements and understandings with respect to the subject matter of the Offer, and (v) notwithstanding anything to the contrary contained herein, this Offer  is subject to the approval of the Bankruptcy Court.

	
21.  

	
Buyer will have the right to assign its rights and obligations as Buyer to an affiliated company prior to Closing. Buyer shall provide written notice of any such assignment to the Chapter 11 Trustee prior to closing.

	
22.  

	
We have read and understand the terms and conditions concerning the sale and purchases of the above described  “BIG EASY” OFFICIAL#: USCG DOC# 998517, and hereby approve and accept the terms hereof and acknowledge receipt of a copy of this Agreement.

 
 

	 	Buyer’s Signature:  	 	 Date: June 11, 2010	 
	 	 	Rotate Black, Inc.	 	 
	 	 	By: John Paulsen, Vice President	 	 
	 	 	 	 	 
	 	Address: 	932 Spring Street Suite # 201 Petoskey, Michigan 49770	 	 

 

 

 

  

Buyer’s Initial's: ________________Seller’s Initial's: ___________________ Agent’s Initial's: ________________

 

2495 Cat Cay Lane, Fort Lauderdale, Florida 33312

Phone: 954-584-1888 Fax: 954-581-9898

www.luxuryyachtsinternational.com

 

  

4

  

 

Luxury Yachts International, Inc.

A Florida Corporation

 

	Luxury Yachts International, Inc.:	 	 Date:	 	 
	Selling Agent:  	Linda L. Krantz, President 	 License #: EBK-4321	 

FINAL ACCEPTANCE:  The Buyer understands that information given him regarding the vessel is believed correct, but is not guaranteed.

Buyer hereby certifies that he is satisfied as to the condition of the vessel and hereby accepts it, as is, without warranty, either expressed or implied, and that this is the final acceptance of the vessel and authorizes the completion of this transaction.

 

 

	Buyer’s Signature: 	 	 Date:	 June 11, 2010	 
	Print Name: 	JOHN PAULSEN, Vice President   Rotate Black, Inc.	 

 

	Luxury Yachts International, Inc.	 	 Date:	 	 
	Witnessed By:  	Linda L. Krantz, President   Selling Agent: License #EBK-4321	 

 

THE SELLER:  CRUISE HOLDINGS II, LLC

1.  Seller, agrees that this Offer is tendered with the understanding that it may not be considered binding until delivery of Buyer’s deposit.

2.  In the event the Buyer’s deposit is forfeited under the terms of this agreement, said deposit shall be divided between the Seller and LUXURY YACHTS INTERNATIONAL, INC. with the sum of $225,000 being retained by the Seller and the Brokerage share shall be in the amount of $50,000.

3.  Seller is to discharge all liens, mortgages and bills now held against the vessel and shall furnish clear title to the vessel in accordance with the regulations of the U.S. Customs, State of Florida, Department of Harbors and Watercraft, and the applicable tax departments of the City , County, State and Federal governments. The Seller shall deliver clean title to the vessel, free and clear of all liens, claims and encumbrances, as a result of the Bankruptcy Court order authorizing the sale of the vessel on such terms.  Any existing liens, claims or encumbrances against the vessel shall attach to the proceeds of sale.

 

 

Buyer’s Initial's: ________________Seller’s Initial's: ___________________ Agent’s Initial's: ________________

 

2495 Cat Cay Lane, Fort Lauderdale, Florida 33312

Phone: 954-584-1888 Fax: 954-581-9898

www.luxuryyachtsinternational.com

  

5

  

 

Luxury Yachts International, Inc.

A Florida Corporation

4. This document constitutes the entire Offer between the parties.  There are no other duties, obligations, liabilities, or warranties, implied or otherwise. All agreements or representations not incorporated in this writing are void and have no effect.  This Agreement can only be modified by written modification agreed to, accepted and signed by BUYER, SELLER and LUXURY YACHTS INTERNATIONAL, INC. 

5. Other Conditions:  In the event the vessel is sold to the Buyer, the Seller shall be under obligation for the payment of $100,000 commission to LUXURY YACHTS INTERNATIONAL, INC. and shall be paid from the proceeds of the sale upon closing.

6.  Default:  In the event of a default under the Note or the Consulting Note, default interest shall accrue at the rate of 20% per annum simple interest.  The Note and the Consulting Note shall be cross-defaulted.

7.  Closing Documents Govern:  In the event of a conflict between this Agreement and any of the Closing Documents, the terms and conditions of the Closing Documents shall govern.

8.  As consideration for the foregoing, Buyer shall cause the Deposit to be wired into the Attorney Trust Account of BSBPA by close of business on Friday, June 4, 2010.  Upon approval of this Offer by the Bankruptcy Court, the Deposit shall become a non-refundable deposit.  At Closing, Buyer will insure the vessel for $5,000,000 with the Trustee as Loss Payee.  After Closing, the Vessel will be moved by Buyer no later than June 15, 2010 from its current berthing to an alternate, reasonable location mutually agreeable by the parties..

9.  The Parties’ respective rights and obligations with respect to the previous offer dated January 29, 2010 are terminated and superseded by the terms of this Offer.  Upon approval by the Bankruptcy Court of this Offer, delivery of the Deposit to the Trust Account of BSBPA, and execution and delivery by Buyer of the Closing Documents, Buyer, and John Paulsen, individually and in his capacity as a representative of Buyer, shall be released from any and all obligations due and owing, or as shall become due and owing, by operation of the Promissory Note and Unconditional Guaranty, true and correct copies of which are attached hereto.  Upon such approval, the original Promissory Note and the original Unconditional guaranty shall be marked “canceled” by the Chapter 11 Trustee and delivered to John Paulsen.

10. In the event the Bankruptcy Court does not approve this offer, Buyer shall be entitled to a prompt 100% refund of the Deposit held in the BSBPA trust account, and Seller shall have no obligation or liability for the payment of any commission to LUXURY YACHTS INTERNATIONAL, INC.

 

11.  I, the Seller, subject to Bankruptcy Court Approval, hereby certify that I have read and approved this agreement and further agree to perform the obligations of the Seller as stated above within the time period provided.  I further acknowledge receipt of a copy of this Agreement.

 

Seller’s Signature: _______________________________________________ Date:  June 11, 2010

Print Name: Cruise Holdings II LLC

By:  Mark T. Calvert, as Trustee

 

Address: c/o Bilzin Sumberg Baena Price & Axelrod LLP, c/o Mindy A. Mora, 200 S. Biscayne Blvd., Suite 2500, Miami, Florida 33131

Luxury Yachts International, Inc.: _________________________________ Date:________________

Selling Agent:                          Linda L. Krantz, President  License Number: # EBK-4321

Luxury Yachts International, Inc.: __________________________________ Date:_______________

 

 

Buyer’s Initial's: ________________Seller’s Initial's: ___________________ Agent’s Initial's: ________________

 

2495 Cat Cay Lane, Fort Lauderdale, Florida 33312

Phone: 954-584-1888 Fax: 954-581-9898

www.luxuryyachtsinternational.com

 

  

6

  

Luxury Yachts International, Inc.

A Florida Corporation

Linda L. Krantz, President

     Broker of Record: #EBK-4321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buyer’s Initial's: ________________Seller’s Initial's: ___________________ Agent’s Initial's: ________________

 

2495 Cat Cay Lane, Fort Lauderdale, Florida 33312

Phone: 954-584-1888 Fax: 954-581-9898

www.luxuryyachtsinternational.com

 

 

 

7

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