Document:

Exhibit 10.1

 

 

 

May 1, 2006

 

	
            By Fax  
 	
            (212) 838-4568
 

Confirm (212) 838-3777

 

Mr. John W. Heilshorn

Lippert / Heilshorn & Associates, Inc.

800 Third Avenue

 Seventeenth Floor

New York, New York 10022

 

	
             
 	
            Re:
 	
            Agreement on Investor Relations Consulting Services made effective as of November 7, 2005, by and between Lippert / Heilshorn & Associates, Inc. and Enclaves Group, Inc.      -             Revision of Terms
 

 

Dear Mr. Heilshorn:

 

I am writing to follow up on our discussions last week about the above-described consulting agreement with your firm.  I am sending this revised letter to incorporate the points you made during our discussion on Friday. for the revision of the Agreement to recognize some changes in the business plans of Enclaves Group and the current schedule for its public presentation of the Company to the investment community.

 

As we talked about then, the Company has spent the first fiscal quarter of 2006 on addressing its capital structure and immediate needs for equity in its projects.  Your firm has provided support and advice to management during that period, which we recognize and appreciate, and I think with some modesty we can claim that we have negotiated terms with Cornell Capital Partners that substantially improve our financial position.

 

During this period, and the attendant delay in our roll-out of the initial projects in Texas, the parties have spent no material time on the 90-day development plan needed to commence the investor outreach contemplated by Phase II.  The Company has paid the January and February monthly fees and costs.  With the original of this letter I forward payment in the amount of $ 14,206.66 for the March monthly fee and costs.

 

In an effort to rationalize the relationship to our new schedule, conserve our working capital, and to recognize the lower stock price that may result from the negotiated transaction to be documented with Cornell Capital, the Company proposes the following revisions for your review and comment:

 

 

 
 

 

	
             
 	
            (a)
 	
            Hiatus Period.    The parties would suspend material investor relations work for a period through June 30, 2006, commencing again on July 1, 2006; provided that the Company with ten (10) business days advance notice may re-initiate the Agreement sooner, subject to LHA availability.
 

 

	
             
 	
            (b)
 	
            The monthly fee for April 2006 would be due and payable with the recommencement of services.
 

 

	
             
 	
            (c)
 	
            The warrants earned under the Agreement through and including April 2006 would be issued pursuant to the current terms of the Agreement.
 

 

	
             
 	
            (d)
 	
            The warrants earned under the Agreement for the period after recommencement would be repriced from $ 0.65 / share to $ 0.15 / share.
 

 

	
             
 	
            (e)
 	
            The base term of the Agreement after recommencement would be twelve (12) months.
 

 

Please call me after you have had an opportunity to review this proposal and let me know whether it is satisfactory to LHA.  If the terms are satisfactory please arrange for an authorized representative to acknowledge and return a counterpart of this letter to my attention.

 

As I said before, we value the relationship and the opportunity to work with you and your team and know that if we manage our expectations and resources this will be a great success for both of us.

 

Very truly yours,

 

/s/ Daniel G. Hayes

Daniel G. Hayes

President and CEO

 

ACKNOWLEDGED AND ACCEPTED:

 

Lippert / Heilshorn & Associates, Inc.

 

By:  ______________________________

Its:  ______________________________

Date:  ______________________________Exhibit 10.2

 

EXTENSION OF NOTE AND LIEN

 

	
            STATE OF TEXAS
 	
            §
 	
             

	
             
 	
            §
 	
            KNOW ALL MEN BY THESE PRESENTS:
 
	
            COUNTY OF TARRANT
 	
            §
 	
             

				

 

THAT Enclaves of Spring Magnolia II LLC, a Texas limited liability company (hereinafter referred to as the “Undersigned”), being legally obligated to pay the hereinafter described Promissory Note (the “Note”) and who, if not presently primarily liable for the payment of the Note, does hereby expressly assume the payment thereof, said Note being in the original principal sum of Seven Hundred Eighty-Eight Thousand Seven Hundred Fifty and No/100 Dollars ($788,750.00) dated May 13, 2005, executed and delivered by the Undersigned to the order of Orinda Capital Partners, L.P., a Texas limited partnership (hereinafter referred to as “Noteholder”), and being more fully described in a Deed of Trust (herein so called) of even date therewith recorded as Document Number D205148516 of the Deed of Trust Records of Tarrant County, Texas, said Note being secured by the liens therein created or mentioned against the real property more particularly described therein (the “Property”), and who now desires to extend or rearrange the time or manner of payment of said Note and to extend and carry forward said liens on said Property; and

 

WHEREAS, the Undersigned has agreed to pay Noteholder the sum of $22,643.84 (the “Extension Payment”), which sum represents the payment of accrued and unpaid interest on the Note through May 1, 2006; and

 

WHEREAS, Noteholder, being the legal owner and holder of said Note and of the liens securing same, in consideration of the premises and at the request of the Undersigned, has agreed to extend or rearrange the time or manner of payment of said Note as hereinafter provided:

 

NOW, THEREFORE, in consideration of the extension or rearrangement of the time or manner of payment of said Note as hereinafter set forth by Noteholder, the Undersigned (a) has paid the Extension Payment to Noteholder, (b) does hereby renew said Note and the indebtedness evidenced thereby and promises to pay to the order of Noteholder in the City of Dallas, Dallas County, Texas, the sum of Six Hundred Eighty-Eight Thousand Seven Hundred Fifty and No/100 Dollars ($688,750.00) (being the present unpaid balance of said Note), together with interest thereon at the rate and in the manner of payment provided in the Note from May 1, 2006 until its extended maturity on June 1, 2006, (c) does hereby extend said liens on said Property until said indebtedness and Note as so renewed and extended has been fully paid, and agrees that such extension or
rearrangement shall in no manner affect or impair said Note or the liens securing the same and that said liens shall not in any manner be waived, the purpose of this instrument being simply to extend or rearrange the time or manner of payment of said Note and indebtedness and to carry forward all liens securing the same, which are acknowledged by the Undersigned to be valid and subsisting, and (d) does hereby further agree that all terms and provisions of said original Note and of the instrument or instruments creating or fixing the liens securing the same shall be and remain in full force and effect as therein written, except as otherwise expressly provided herein.

 

The Undersigned hereby acknowledges that the Deed of Trust was mistakenly signed in the name of its Managing Member rather than in the name of the Undersigned. By its execution below, the Undersigned and said Managing Member each do hereby ratify and affirm the Deed of Trust and the liens and interests granted thereby against the Property, effective as of May 13, 2005, to the same extent as if said Deed of Trust were properly signed in the name and on behalf of the Undersigned and recorded in the appropriate public records of Tarrant County, Texas.  

 

 

 

 

                EXECUTED on the 1st day of May, 2006, but effective as of the 1st day of March, 2006.

 

	
            ACCEPTED AND AGREED to by the
 	
            ENCLAVES OF SPRING MAGNOLIA II LLC,
 
	
            owner and holder of said Note:
 	
            a Texas limited liability company
 	
             

 

	
            ORINDA CAPITAL PARTNERS, L.P.
 	
            By:
 	
            Enclaves Group, Inc.,
 	
             

	
            a Texas limited partnership
 	
            a Delaware corporation,
 	
             

	
             
 	
            its Managing Member
 	
             

	
            By:
 	
            Orinda Managers, Inc.,
 	
             

	
             
 	
            a Texas corporation,
 	
             

	
             
 	
            its General Partner
 	
            By:
 	
            /s/ Daniel G. Hayes                
 
										

Daniel Hayes,

President and CEO

	
             
 	
            By:
 	
            _______________________
 

	
             
 	
            Charles J. Wilson,
 	
            ENCLAVES GROUP, INC.,
 
	
             
 	
            President
 	
            a Delaware corporation
 	
             

					

 

 

	
             
 	
            By:
 	
            /s/ Daniel G. Hayes                            
 

Daniel Hayes,

President and CEO

	
            STATE OF TEXAS
 	
            §
 
	
             
 	
            §
 
	
            COUNTY OF DALLAS
 	
            §
 

 

This instrument was acknowledged before me on ________________, by Charles J. Wilson, President of Orinda Managers, Inc., a Texas corporation on behalf thereof as the General Partner of Orinda Capital Partners, L.P., a Texas limited partnership, on behalf thereof.

 

	
             
 	
            _____________________________
 
	
             
 	
            Notary Public, State of Texas
 	
             

	
            My Commission Expires:
 	
             

	
             
 	
            _____________________________
 
	
            ____________________
 	
            Printed Name of Notary
 	
             

					

 

	
            STATE OF NEW YORK
 	
            §
 
	
             
 	
            §
 
	
            COUNTY OF WESTCHESTER
 	
            §
 

 

This instrument was acknowledged before me on April 28th, 2006, by Daniel Hayes, President and CEO of Enclaves Group, Inc., a Delaware corporation on behalf of itself and as the Managing Member of Enclaves of Spring Magnolia II LLC, a Texas limited liability company, on behalf thereof.

 

/s/ Ernestine B. Papovitch                        

	
             
 	
            Notary Public, State of New York
 
	
            My Commission Expires:
 	
             

			

Ernestine B. Papovitch                              

	
            Aug. 22, 2009                  
 	
            Printed Name of Notary

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