Document:

exv10w1

Exhibit 10.1

	 	 	 
	

	 	LOAN MODIFICATION

AGREEMENT

     This First Loan Modification Agreement (“First Modification”) modifies the Loan Agreement
dated July 1, 2008 (“Agreement”), regarding a revolving line of credit in the maximum principal
amount of $15,000,000 and a term loan in the original principal amount of $13,500,000 (the
“Facilities”), executed by CRAFT BREWERS ALLIANCE, INC. (“Borrower”) and BANK OF AMERICA, N.A.
(“Bank”). Terms used in this First Modification and defined in the Agreement shall have the
meaning given to such terms in the Agreement. For mutual consideration, Borrower and Bank agree to
amend the Agreement as follows:

     1. Line of Credit Interest Rate. Section 1.4 of the Agreement is amended to read as
follows:

          1.4 Interest Rate.

     (a) The interest rate is a rate per year equal to the BBA LIBOR Daily Floating
Rate plus the Applicable Rate as defined below.

     (b) The BBA LIBOR Daily Floating Rate is a fluctuating rate of interest equal
to the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA
LIBOR”), as published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as selected by the Bank from time to time) as determined for
each banking day at approximately 11:00 a.m. London time two (2) London Banking Days
prior to the date in question, for U.S. Dollar deposits (for delivery on the first
day of such interest period) with a one month term, as adjusted from time to time in
the Bank’s sole discretion for reserve requirements, deposit insurance assessment
rates and other regulatory costs. If such rate is not available at such time for
any reason, then the rate for that interest period will be determined by such
alternate method as reasonably selected by the Bank. A “London Banking Day” is a
day on which banks in London are open for business and dealing in offshore dollars.

     2. Term Loan Interest Rate. Section 2.4 of the Agreement is amended to read as
follows:

     2.4 Interest Rate. The interest rate is a rate per year equal to the BBA LIBOR
Daily Floating Rate, as defined in Section 1.4(b), plus the Applicable Rate, as defined in
Section 1.6.

     3. Applicable Rate. Section 1.6 of the Agreement is amended to read as follows:

     1.6 Applicable Rate. The Applicable Rate shall be (a) 3.50% for LIBOR/IBOR and
0.50% for the Fee Margin until receipt by the Bank of the Borrower’s financial statements
for the period ending September 30, 2009, and (b) thereafter, the following amounts per
annum, based upon the ratio of Funded Debt to EBITDA (as defined in Section 9.3, the
“Financial Test”), as set forth in the most recent compliance certificate (or, if no
compliance certificate is required, the Borrower’s most recent financial statements)
received by the Bank as required in Section 9.2:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable Rate
	 	 	 	 	 	 	(in percentage points per annum)
	Pricing Level	 	Funded Debt to EBITDA	 	LIBOR/IBOR +	 	Fee Margin:
	 	1	 	 	 >4.0 to 1

	 	 	3.50	 	 	 	0.500	 
	 	2	 	 	<4.0 to 1 but  > 3.0 to 1

	 	 	3.00	 	 	 	0.500	 
	 	3	 	 	<3.0 to 1 but  > 2.0 to 1

	 	 	2.00	 	 	 	0.375	 
	 	4	 	 	< 2.0 to 1

	 	 	1.75	 	 	 	0.300	 

The Applicable Rate shall be in effect from the date the most recent compliance certificate
or financial statement is received by the Bank until the date the next compliance
certificate or financial statement is received; provided, however, that if the Borrower
fails to timely deliver the

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next compliance certificate or financial statement by more than
30 days, the Applicable Rate from
the date 30 days after such compliance certificate or financial statement was due until the
date such compliance certificate or financial statement is received by the Bank shall be the
highest pricing level set forth above.

If, as a result of any restatement of or other adjustment to the financial statements of the
Borrower or for any other reason, the Borrower or the Bank determines that (i) the Financial
Test as calculated by the Borrower as of any applicable date was inaccurate and (ii) a
proper calculation of the Financial Test would have resulted in higher pricing for such
period, the Borrower shall immediately and retroactively be obligated to pay to the Bank an
amount equal to the excess of the amount of interest and fees that should have been paid for
such period over the amount of interest and fees actually paid for such period. The Bank’s
acceptance of payment of such amounts will not constitute a waiver of any default under this
Agreement. The Borrower’s obligations under this paragraph shall survive the termination of
this Agreement and the repayment of all other obligations.

     4. Collateral. Section 5.2 of the Agreement is amended to read as follows:

     5.2 Real Property. The Borrower’s obligations to the Bank under both
Facilities will be secured by a lien covering real property located at 924 North Russell
Street, Portland, Oregon owned by the Borrower. The foregoing lien is legally described in
the Line of Credit Commercial Deed of Trust, Assignment, Security Agreement and Fixture
Filing (the “Deed of Trust”) dated December 28, 2007, made by Widmer, as Grantor, recorded
December 31, 2007, in Multnomah County, Oregon, under recording number 2007-220398. The
Deed of Trust shall be amended to reference this Agreement as its primary secured
obligation, and the Bank shall receive at the Borrower’s expense a modification endorsement
to its title policy covering the Deed of Trust reflecting such amendment. The Borrower’s
obligations to the Bank under both Facilities will also be secured by a lien covering real
property located at 14300 NE 145th Street, Woodinville, Washington.

     5. Waiver of Defaults. Borrower acknowledges that Borrower failed to comply with
Sections 9.3 (Funded Debt to EBITDA ratio) and 9.4 (Fixed Charge Coverage Ratio) of the Agreement
for the period ending September 30, 2008. Bank waives as an event of default such failures.
Notwithstanding such waiver, Bank shall have the right to enforce strict compliance for all
subsequent periods with the recited Sections, subject to any amendments thereto made in this First
Modification, and with all other terms and conditions of the Agreement and the other Loan
Documents.

     6. Interim Reporting. Section 9.2(b) of the Agreement is amended to read as follows:

     (b) Within 30 days of each month end (including the last month in each fiscal year),
monthly financial statements of the Borrower, certified and dated by an authorized financial
officer. These financial statements may be company-prepared. The statements shall be
prepared on a consolidated and consolidating basis.

     7. Compliance Certificates. The first phrase of Section 9.2(c) of the Agreement,
which currently reads “Within the period(s) provided in (a) and (b) above,...” is changed to read
“With each of the financial statements required under (a) above and with each of the financial
statements required (b) above that coincide with a fiscal quarter end,...”

     8. Funded Debt to EBITDA Ratio. Section 9.3 of the Agreement is amended to read as
follows:

     9.3 Funded Debt to EBITDA Ratio. To maintain on a consolidated basis a ratio
of Funded Debt to EBITDA not exceeding the ratios indicated for each period specified below:

	 	 	 
	Period	 	Ratios
	As of September 30, 2009:

	 	4.50 to 1
	 
	 	 
	From December 31, 2009
through September 30, 2010

	 	3.50 to 1
	 
	 	 

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	Period	 	Ratios
	From December 31, 2010,
and thereafter

	 	3.00 to 1

     (a) “Funded Debt” means all outstanding liabilities for borrowed money and
other interest-bearing liabilities, including current and long term debt, less the
non-current portion of Subordinated Liabilities.

     (b) “EBITDA” means net income, less income or plus loss from discontinued
operations and extraordinary items, plus income taxes, plus interest expense, plus
depreciation, depletion, and amortization, minus dividends, plus other non-cash
charges, including restructuring charges in accordance with the schedule attached as
Exhibit B to this Agreement.

     (c) “Subordinated Liabilities” means liabilities subordinated to the Borrower’s
obligations to the Bank in a manner acceptable to the Bank in its sole discretion.

     (d) This ratio will be calculated at the end of each reporting period for which
the Bank requires financial statements, commencing quarter ending September 30,
2009, using the results of the twelve-month period ending with that reporting
period.

     9. Fixed Charge Coverage Ratio. Section 9.4 of the Agreement is amended to read as
follows:

     9.4 Fixed Charge Coverage Ratio. To maintain on a consolidated basis a Fixed
Charge Coverage Ratio of at least 1.25 to 1 as of September 30, 2009, and as of each fiscal
quarter end thereafter.

     (a) “Fixed Charge Coverage Ratio” means the ratio of:

     (i) EBITDA (as defined above) minus cash taxes minus Maintenance
Capital Expenditures, divided by

     (ii) current year scheduled principal payments on long-term Debt, plus
current portion of capital leases, plus cash interest expense.

     (b) “Maintenance Capital Expenditures” means $2,000,000.

     (c) This ratio will be calculated at the end of each reporting period for which
the Bank requires financial statements, commencing quarter ending September 30,
2009, using the results of the twelve-month period ending with that reporting
period. The current portion of long-term liabilities will be measured as of the
last day of the calculation period.

     10. Additional Financial Covenants. The following three financial covenants are added
to the Agreement, to read as follows:

     9.4A Minimum EBITDA. To maintain on a consolidated basis a minimum EBITDA of
at least the amounts indicated on a quarterly basis for each period specified below:

	 	 	 	 	 
	Period	 	Amounts
	As of December 31, 2008:

	 	$	875,000	 
	 
	 	 	 	 
	As of March 31, 2009:

	 	$	850,000	 
	 
	 	 	 	 
	As of June 30, 2009:

	 	$	2,300,000	 
	 
	 	 	 	 
	From September 30, 2009,
and thereafter:

	 	Covenant ceases to be applicable

For purposes of Section 9.4A only, “EBITDA” means net income, less income or plus loss from
discontinued operations and extraordinary items, plus
income taxes, plus interest expense,
plus

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depreciation, depletion, and amortization, minus dividends, plus other non-cash
charges,
including restructuring charges incurred during such quarter in accordance with the schedule
attached as Exhibit B to this Agreement, plus additional indirect charges of $150,000 for
the quarter ending December 31, 2008, and zero thereafter.

     9.4B Asset Coverage Ratio. To maintain on a consolidated basis an Asset
Coverage Ratio of at least 1.50 to 1 as of December 31, 2008, and as of each month end
thereafter.

     (a) “Asset Coverage Ratio” means the ratio of:

     (i) Acceptable Receivables plus Acceptable Inventory, determined as of
each month end, divided by

     (ii) amounts outstanding under the Line of Credit, including Letters of
Credit outstanding, determined as of each month end.

     (b) “Acceptable Receivable” means:

     (i) Amounts identified on the line titled “Accounts Receivable, net of
allowance for doubtful accounts” on the Securities and Exchange Commission
(SEC) financial filings of the Borrower plus amounts representing keg
deposit receivables.

     (ii) The account has resulted from the sale of goods or services by the
Borrower in the ordinary course of the Borrower’s business and without
further obligation on the part of the Borrower to service, repair, or
maintain any such goods sold other than pursuant to any applicable warranty.

     (iii) Amounts otherwise acceptable to the Bank.

     (c) “Acceptable Inventory” means:

     (i) Amounts identified on the line titled “Inventories, net” on the SEC
financial Filings of the Borrower.

     (i) The inventory is owned by the Borrower free of any title defects or
any liens or interests of others except the security interest in favor or
the bank and is held for sale or use in the ordinary course of the
borrower’s business. This does not prohibit any statutory liens which may
exist in favor of the growers of agricultural products which are purchased
by the Borrower.

     (i) Amounts otherwise acceptable to the Bank.

     (d) The quarterly and annual SEC financial statements of the Borrower will have
been certified by the Chief Executive Officer and Chief Financial Officer (1) to
fairly present in all material respects the financial condition, results of
operations, and cash flows of the Borrower and (2) to be prepared in a manner
consistent with Exchange Act Rules 13a-15(e) and 15d-15(e) regarding the
establishment and maintenance of disclosure controls and procedures, Exchange Act
Rules 13a-15(f) and 15d-15(f) regarding internal control over financial reporting,
and 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes Oxley
Act of 2002.

     (e) The quarterly and annual financial statements will have undergone either
quarterly review or an annual audit by the Borrower’s external auditors.

     (f) The Borrower will apply in a materially consistent manner the accounting
principals, policies, and processes as used in the Borrower’s quarterly SEC
reporting to the interim monthly reporting required as part of the Agreement.

     9.4C Capital Expenditures. Not to spend or incur obligations (including the
total amount of any capital leases) to acquire fixed assets for more than the amounts
specified below for each fiscal quarter specified below on a consolidated basis:

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	Period	 	Amounts
	Fiscal quarter ending December 31, 2008
(“4Q08”):

	 	$	2,250,000	 
	 
	 	 	 	 
	Fiscal
quarter ending March 31, 2009 (“1Q09”):

	 	$1,350,000
plus any amounts

permitted for 4Q08 but not
used

	 
	 	 	 	 
	Fiscal quarter ending June 30, 2009:

	 	$550,000
plus any amounts
permitted for 1Q09 but not used
	 
	 	 	 	 
	All fiscal quarters thereafter:

	 	No limitation

     11. Dividends and Stock Repurchases. Section 9.5 of the Agreement is amended to read
as follows:

     9.5 Dividends and Stock Repurchases. Except with the prior written consent of
the Bank, not to declare or pay any dividends on any of its shares, and not to purchase,
redeem or otherwise acquire for value any of its shares, or create any sinking fund in
relation thereto

     12. Other Debts. Subsection (d) of Section 9.8 of the Agreement is amended to read as
follows:

     (d) Debt secured by purchase money security interests in assets acquired after the date
of this Agreement and before March 31, 2009 (“purchase-money debt”), if such purchase-money
debt does not exceed $1,000,000.

     13. Investments. Subsection (d) of Section 9.11 of the Agreement is deleted.

     14. Additional Real Estate.

     (a) No later than January 31, 2009, Borrower shall grant to Bank to secure all
obligations of Borrower to Bank of every kind, whether direct or contingent, and whether
arising out of loans, equipment leases, deposit services, derivative transactions, and all
other services and products provided to Borrower by Bank or its affiliates; and all fees,
costs, expenses, and indemnifications due to Bank under the Agreement, a Deed of Trust on
Borrower’s real property located at 14300 NE 145th Street, Woodinville,
Washington 98072 (the “Woodinville Property”).

     (b) No later than February 28, 2009, Borrower shall grant to Bank to secure all
obligations of Borrower to Bank of every kind, whether direct or contingent, and whether
arising out of loans, equipment leases, deposit services, derivative transactions, and all
other services and products provided to Borrower by Bank or its affiliates; and all fees,
costs, expenses, and indemnifications due to Bank under the Agreement, a leasehold deed of
trust on Borrower’s real property located at 35 Corporate Drive,
Pease International Tradesport, Portsmouth, New Hampshire 03801 (the
“New Hampshire Property”)

     (c) In connection with each such deed of trust, Borrower shall provide to Bank, at
Borrower’s expense:

     (i) An ALTA lender’s title insurance policy (on a form acceptable to Bank and
from a title company acceptable to Bank), for at least an amount equal to the
appraised fair market value of the Woodinville Property and the New Hampshire
Property, respectively, insuring the Bank’s interest in the Woodinville Property and
the New Hampshire Property, respectively, with only such exceptions as may be
approved by Bank and together with such endorsements as the Bank may require.

     (ii) A Phase I environmental site assessment prepared by a qualified third party
consultant approved by Bank concerning any potential toxic or hazardous condition
with respect to the Woodinville Property and the New Hampshire Property,
respectively, together with a certification signed by Borrower regarding the
environmental information provided to Bank.

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     (iii) An Environmental Indemnity Agreement with respect to the Woodinville
Property and the New Hampshire Property, respectively, in form satisfactory to Bank.

     (iv) With respect to the New Hampshire Property, a copy of Borrower’s lease of
the property and exercise commercially reasonable efforts to obtain a signed consent/estoppel of the lessor, in form satisfactory to
Bank provided, that if Borrower has met all other conditions but is
unable to obtain lessor’s consent by February 28, 2009, despite having exercised commercially reasonable
efforts to obtain it, this deadline will be extended by Bank for a period which Bank deems reasonable under the circumstances.

     15. Modification Fee. Borrower shall pay to Bank a modification fee of $30,000 upon
execution of this First Modification.

     16. Representations and Warranties. When Borrower signs this First Modification,
Borrower represents and warrants to Bank that: (a) there is no event that is, or with notice or
lapse of time or both would be, an event of default under the Agreement except those events, if
any, that have been disclosed in writing to Bank or waived in writing by Bank, (b) the
representations and warranties in the Agreement are true as of the date of this First Modification
as if made on the date of this First Modification, (c) this First Modification does not conflict
with any law, agreement, or obligation by which Borrower is bound, and (d) this First Modification
is within Borrower’s powers, has been duly authorized, and does not conflict with any of Borrower’s
organizational papers.

     17. Conditions. This First Modification will be effective when Bank receives the
following items, in form and content acceptable to Bank:

     (a) If required by Bank, evidence that the execution, delivery, and performance by
Borrower of this First Modification and any instrument or agreement required under this
First Modification have been duly authorized.

     (b) Payment by Borrower of the modification fee referenced in Section 15.

     (c)
An amended and restated Security Agreement, amending the original
Security Agreement to secure
all obligations of Borrower to Bank of every kind, whether direct or contingent, and whether
arising out of loans, equipment leases, deposit services, derivative transactions, and all
other services and products provided to Borrower by Bank or its affiliates; and all fees,
costs, expenses, and indemnifications due to Bank under the Agreement.

     (d) Payment by Borrower of all costs, expenses, and attorneys’ fees (including
allocated costs for in-house legal services) incurred by Bank in connection with this First
Modification.

     18. Other Terms. Except as specifically amended by this First Modification or any
prior amendment, all other terms, conditions, and definitions of the Agreement, and all other
documents, instruments, or agreements entered into with regard to the Facilities, shall remain in
full force and effect.

     19. FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT:
(A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT
MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT LETTER, TERM SHEET, OR OTHER WRITTEN
OUTLINE OF TERMS AND CONDITIONS RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH COMMITMENT
LETTER, TERM SHEET, OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE
CONTRARY, (C) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT MAY
NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR
UNDERSTANDINGS OF THE PARTIES.

     20. STATUTORY NOTICE. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS
MADE BY THE BANK CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR
HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER’S RESIDENCE MUST BE IN WRITING, EXPRESS
CONSIDERATION AND BE SIGNED BY US TO BE ENFORCEABLE.

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DATED as of November 14, 2008.

	 	 	 	 	 	 	 	 	 
	Bank:	 	Borrower:	 	 
	 
	 	 	 	 	 	 	 	 
	BANK OF AMERICA, N.A.	 	CRAFT BREWERS ALLIANCE, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Michael Snook 

	 	By	 	/s/ Terry E. Michaelson 

	 	 
	 

	 	 Michael Snook, Senior Vice President
	 	 	 	
Terry E. Michaelson, Chief Executive Officer
	 	 

- 7 -EXHIBIT 10.3
------------

                       WAIKELE GOLF COURSE, LLC
                 900 North Michigan Avenue, Suite 1400
                        Chicago, Illinois 60611

                           October 29, 2008

Waikele Country Club Inc.
c/o John B. Shimizu, Esq.
Van Buren Campbell & Shimizu
Topa Financial Center, Fort Street Tower
745 Fort Street, Suite 1950
Honolulu, Hawaii 96813

     Re:   Waikele Golf Course, LLC - Waikele Country Club Inc.
           Property Purchase Agreement Dated as of April 8, 2008,
           as Amended, Assigned and Affected by the Conversion
           Described Below
           -------------------------------------------------------

Gentlemen:

     Reference is made to that certain Property Purchase Agreement dated
as of April 8, 2008, executed by Waikele Golf Course, LLC, as Seller, and
Dong Yang Enterprise Inc., as Purchaser, as amended by that certain letter
agreement dated June 4, 2008, the interest of Purchaser under the Property
Purchase Agreement, as amended, having been assigned to Waikele Country
Club LLC by that certain Assignment and Assumption Agreement and Consent
dated June 5, 2008.  Pursuant to Articles of Conversion dated July 10,
2008, filed in the Department of Commerce and Consumer Affairs of the State
of Hawaii on July 14, 2008, Waikele Country Club LLC was converted to a
Hawaii corporation, the name of the resulting corporation being Waikele
Country Club Inc.  By Consent and Confirmation of Obligations Under
Property Purchase Agreement dated July 14, 2008, Waikele Golf Course, LLC
consented to the conversion as described above.  The Property Purchase
Agreement was further amended by that certain letter agreement dated
August 7, 2008, by that certain letter agreement dated September 8, 2008
and by that certain letter agreement dated October 7, 2008.  The Property
Purchase Agreement, as amended, assigned and affected by the conversion as
described above, is hereinafter referred to as the "Agreement".  This is to
confirm that the Agreement shall be further amended, as of October 29,
2008, in the manner described below.

     1.    In Section 2 of the Agreement, the first sentence of Section 2
shall be deleted and replaced by the following sentence:

           "The purchase price ("Purchase Price") to be paid by Purchaser
     for the property shall be TWENTY-THREE MILLION TWO HUNDRED EIGHTY-

<PAGE>

Waikele Country Club Inc.
October 29, 2008
Page 2

     NINE THOUSAND SIX HUNDRED AND NO/100 U.S. DOLLARS (U.S.
     $23,289,600.00)."

     2.    In Section 2 of the Agreement, subsections (a), (b) and (c)
shall be deleted and replaced by the following subsections:

           "(a)  DEPOSIT.  Within five (5) days following the Effective
     Date, Purchaser deposited into Escrow the sum of FIVE HUNDRED
     THOUSAND AND NO/100 U.S. DOLLARS (U.S. $500,000.00) (the "Initial
     Deposit"), to be held and disbursed by Escrow Agent in accordance
     with this Agreement.  Within two (2) business days following the
     deposit of the Initial Deposit, a portion of the Initial Deposit in
     the amount of ONE HUNDRED THOUSAND AND NO/100 U.S. DOLLARS (U.S.
     $100,000.00) was disbursed by the Escrow Agent to Seller, which
     portion of the Initial Deposit became the property of Seller,
     provided that at Closing, such disbursement in the amount of
     $100,000.00 shall be credited against the Purchase Price.

           (b)   ADDITIONAL DEPOSITS.  When Purchaser elected to proceed
     with the purchase of the Property in accordance with Section 10(g) of
     this Agreement, in addition to the Initial Deposit ($100,000.00 of
     which was disbursed to Seller in accordance with Section 1(a) above),
     Purchaser deposited into Escrow the sum of FIVE HUNDRED THOUSAND AND
     NO/100 U.S. DOLLARS (U.S. $500,000.00) (the "First Additional
     Deposit"), to be held and disbursed by Escrow Agent in accordance
     with this Agreement.  On or about June 9, 2008, Purchaser deposited
     into Escrow the additional sum of SIX HUNDRED THOUSAND AND NO/100
     U.S. DOLLARS (U.S. $600,000.00) (the "Second Additional Deposit"), to
     be held and disbursed by Escrow Agent in accordance with this
     Agreement.  On or about June 9, 2008, the balance of the Initial
     Deposit ($400,000.00) and the First Additional Deposit ($500,000.00)
     were disbursed by Escrow Agent to Seller, which disbursement in the
     amount of $900,000.00 became the property of Seller, provided that at
     Closing, such disbursement in the amount of $900,000.00 shall be
     credited against the Purchase Price.  On or about July 9, 2008,
     Purchaser deposited into Escrow the additional sum of SIX HUNDRED
     THOUSAND AND NO/100 U.S. DOLLARS  (U.S. $600,000.00) (the "Third
     Additional Deposit"), to be held and disbursed by Escrow Agent in
     accordance with this Agreement.

           On or about August 8, 2008, the Second Additional Deposit and
     the Third Additional Deposit were disbursed by Escrow Agent to
     Seller, which disbursement in the amount of $1,200,000.00 became the
     property of Seller, provided that at Closing, such disbursement in
     the amount of $1,200,000.00 shall be credited against the Purchase
     Price.  On or about August 19, 2008, Purchaser deposited into Escrow
     the additional sum of SIX HUNDRED THOUSAND AND NO/100 U.S. DOLLARS

<PAGE>

Waikele Country Club Inc.
October 29, 2008
Page 3

     (U.S. $600,000.00) (the "Fourth Additional Deposit"), to be held and
     disbursed by Escrow Agent in accordance with this Agreement.  On or
     about August 19, 2008, the Fourth Additional Deposit was disbursed by
     Escrow Agent to Seller, which disbursement in the amount of
     $600,000.00 became the property of Seller, provided that at Closing,
     such disbursement in the amount of $600,000.00 shall be credited
     against the Purchase Price.  On or about September 8, 2008, Purchaser
     deposited into Escrow the additional sum of FIVE HUNDRED FIFTY
     THOUSAND AND NO/100 U.S. DOLLARS (U.S $550,000.00) (the "Fifth
     Additional Deposit"), to be held and disbursed by Escrow Agent in
     accordance with this Agreement.  On or about September 8, 2008, the
     Fifth Additional Deposit was disbursed by Escrow Agent to Seller,
     which disbursement in the amount of $550,000.00 became the property
     of Seller, provided that at Closing, such disbursement in the amount
     of $550,000.00 shall be credited against the Purchase Price.  On or
     about September 10, 2008, Purchaser deposited into Escrow the
     additional sum of ONE HUNDRED THOUSAND AND NO/100 U.S. DOLLARS (U.S.
     $100,000.00) (the "Sixth Additional Deposit") to be held and
     disbursed by Escrow Agent in accordance with this Agreement.  On or
     about September 10, 2008, the Sixth Additional Deposit was disbursed
     by Escrow Agent to Seller, which disbursement in the amount of
     $100,000.00 became the property of Seller, provided that at Closing
     such disbursement in the amount of $100,000.00 shall be credited
     against the Purchase Price.  On or about September 19, 2008,
     Purchaser deposited into Escrow the additional sum of THREE HUNDRED
     THOUSAND AND NO/100 U.S. DOLLARS (U.S. $300,000.00) (the "Seventh
     Additional Deposit") to be held and disbursed by Escrow Agent in
     accordance with this Agreement.  On or about September 19, 2008, the
     Seventh Additional Deposit was disbursed by Escrow Agent to Seller,
     which disbursement in the amount of $300,000.00 became the property
     of Seller, provided that at Closing, such disbursement in the amount
     of $300,000.00 shall be credit against the Purchase Price.

           Upon payment of the Fourth Additional Deposit, as required
     under this Section 2(b), the Closing Date was extended to
     September 8, 2008.  Upon payment of the Fifth Additional Deposit,
     the Sixth Additional Deposit and the Seventh Additional Deposit, as
     required under this Section 2(b), the Closing Date was extended to
     October 7, 2008.  In consideration of the increase in the Purchase
     Price from $23,250,000.00 to $23,289,600.00, the Closing Date was
     extended to October 29, 2008.  Upon the additional sum of TWO HUNDRED
     THOUSAND AND NO/100 U.S. DOLLARS (U.S. $200,000.00) (the "Eighth
     Additional Deposit") being deposited by Purchaser into Escrow on or
     before October 29, 2008, which Eighth Additional Deposit shall be
     held and disbursed by Escrow Agent in accordance with this Agreement,
     the Closing Date is being further extended to November 12, 2008.
     Promptly upon receiving the Eighth Additional Deposit, Escrow Agent

<PAGE>

Waikele Country Club Inc.
October 29, 2008
Page 4

     shall disburse the Eighth Additional Deposit to Seller, which
     disbursement in the amount of $200,000.00 shall become the property
     of Seller (with no further instructions or approval from Purchaser
     required), provided that at Closing, such disbursement in the amount
     of $200,000.00 shall be credited against the Purchase Price.

           Neither the Initial Deposit, the First Additional Deposit, the
     Second Additional Deposit, the Third Additional Deposit, the Fourth
     Additional Deposit, the Fifth Additional Deposit, the Sixth
     Additional Deposit, the Seventh Additional Deposit nor the Eighth
     Additional Deposit (collectively, the "Deposit"), shall be refundable
     to Purchaser, Purchaser acknowledging that such Initial Deposit,
     First Additional Deposit, Second Additional Deposit, Third Additional
     Deposit, Fourth Additional Deposit, Fifth Additional Deposit, Sixth
     Additional Deposit, Seventh Additional Deposit and Eighth Additional
     Deposit, in the total amount of $3,950,000.00, are the property of
     Seller and are being paid by Purchaser through Escrow to Seller in
     consideration of Seller agreeing to extend the Closing Date
     (collectively, the "Extension Fees").  At Closing, the Extension Fees
     shall be credited against the Purchase Price.

           (c)   FORM OF CONSIDERATION AT CLOSING.  Purchaser shall:

                 (i)  On or before 11:59 a.m. (HST) one (1) business day
     prior to the Closing Date (as defined below), Purchaser shall deposit
     into Escrow the sum of SIX MILLION EIGHTY-NINE THOUSAND SIX HUNDRED
     AND N0/100 U.S. DOLLARS (U.S. $6,089,600.00) (the "Final Deposit"),
     together with Purchaser's share of the closing costs, Escrow Agent's
     fees, applicable prorated items and such other amounts to be paid by
     Purchaser at Closing pursuant to this Agreement.  The Final Deposit
     shall be disbursed to Seller at Closing as a portion of the Purchase
     Price.

           (ii)  On or before two (2) business days prior to the Closing
     Date, Purchaser shall deposit into Escrow a Promissory Note executed
     by Purchaser in favor of Seller in the principal sum of THIRTEEN
     MILLION TWO HUNDRED FIFTY THOUSAND AND NO/100 U.S. DOLLARS (U.S.
     $13,250,000.00) (the "Promissory Note"), which amount is intended to
     reflect the Purchase Price, less the Final Deposit and less a credit
     provided by Seller at Closing in an amount equal to the Extension
     Fees previously paid by Purchaser to Seller under this Agreement.
     The Promissory Note shall be due and payable in full on or before
     May 12, 2009 (the "Maturity Date").  The Promissory Note shall
     provide for interest to be charged at the rate of seven percent (7%)
     per annum with monthly payments of interest only to be made on the
     twelfth (12th) day of each month prior to the Maturity Date
     commencing on December 12, 2008.  With each payment of interest,

<PAGE>

Waikele Country Club Inc.
October 29, 2008
Page 5

     Purchaser shall also pay to Seller the amount of the Hawaii General
     Excise Tax and the City and County of Honolulu surcharge imposed on
     Seller by reason of the interest payment, which excise tax and
     surcharge shall be payable at the rate of 4.712% (or any increase in
     such rate that may occur).  The Promissory Note shall be in the form
     attached hereto as EXHIBIT "A".  The Promissory Note shall be secured
     by a first lien, Mortgage, Assignment of Leases and Rents, Security
     Agreement, Financing Statement and Fixture Filing, executed by
     Purchaser in favor of Seller, encumbering the Property, subject only
     to the title exceptions specified in Exhibit "A" attached thereto
     (the "Mortgage").  The Mortgage shall provide that Purchaser shall
     not sell, transfer, further mortgage, further pledge or encumber the
     Property, or transfer any direct or indirect interest in Purchaser,
     in any way without the prior written consent of Seller, which consent
     may be withheld in Seller's sole and absolute discretion, all as more
     specifically set forth in the Mortgage.  The Mortgage shall be in the
     form attached hereto as EXHIBIT "B".  Seller's security interest in
     the personal property constituting the Property shall be perfected by
     the recording of a UCC Financing Statement (the "UCC Financing
     Statement"), which UCC Financing Statement shall be recorded in the
     State of Hawaii.  The UCC Financing Statement shall be in the form
     attached hereto as EXHIBIT "C".  Seller's obligations under the
     Promissory Note and the Mortgage shall be guaranteed under the terms
     of a Guaranty, executed by Dong Yang Enterprise Inc., a Hawaii
     corporation, and Ms. Sam Soon Sun (collectively, "Guarantors"), the
     principal of Purchaser and of Dong Yang Enterprise Inc., in favor of
     Seller (the "Guaranty").  The Guaranty shall be in the form attached
     hereto as EXHIBIT "D".  At Closing, the Promissory Note, together
     with the Guaranty, shall be delivered to Seller, as a portion of the
     Purchase Price, the Mortgage shall be duly filed in the Office of the
     Assistant Registrar of the Land Court of the State of Hawaii and
     recorded in the Bureau of Conveyances of the State of Hawaii and the
     UCC Financing Statement shall be recorded in the Bureau of
     Conveyances of the State of Hawaii."

     3.    In Section 5 of the Agreement, subsections (a), (b) and (c)
shall be deleted and replaced by the following subsections:

           "(a)  CLOSING DATE.   As used in this Agreement, the term
     "Closing Date" means the date the Deed, the Mortgage and the UCC
     Financing Statement are recorded in the Office of the Assistant
     Registrar of the Land Court of the State of Hawaii and in the Bureau
     of Conveyances of the State of Hawaii, and the term "Closing" shall
     refer to the recordation of the Deed, the Mortgage and the UCC
     Financing Statement, the delivery of the Conveyance Documents, the
     delivery of the Promissory Note and the Guaranty to Seller and the
     disbursal of the Final Deposit and any other funds by Escrow Agent to
     Seller as provided in this Agreement.

<PAGE>

Waikele Country Club Inc.
October 29, 2008
Page 6

           (b)   CLOSING DOCUMENTATION.  On or before two (2) business
     days  prior to the Closing Date, Seller and/or Purchaser, as
     appropriate, shall execute and deliver to Escrow Agent the Conveyance
     Documents, the Promissory Note, the Mortgage, the UCC Financing
     Statement, the Guaranty and such additional documents and items as
     may be required to consummate the transaction pursuant to this
     Agreement.

           (c)   DISBURSAL OF FINAL DEPOSIT AT CLOSING.  At Closing,
     Escrow Agent shall disburse to Seller the Final Deposit (less
     Seller's share of the closing costs, Escrow Agent's fees and
     applicable prorated items), shall record the Deed, the Mortgage and
     the UCC Financing Statement, shall appropriately deliver the other
     executed Conveyance Documents and shall deliver to Seller the
     executed Promissory Note and the executed Guaranty."

     4.    In Section 30 of the Agreement, the first and second paragraphs
of Section 30 shall be deleted and replaced by the following paragraphs:

                 "30. BROKERAGE.  Seller has agreed to pay a brokerage
     commission to Lexon, Inc. - Mr. Alexander K. H. Yoo, which is
     Purchaser's real estate broker in this transaction ("Purchaser's
     Broker").  The brokerage commission to be paid by Seller to
     Purchaser's Broker shall be payable and paid as follows:  (i) upon
     the Closing, the amount of $400,000.00 shall be payable and paid to
     Purchaser's Broker; and (ii) after the Closing upon payment by
     Purchaser and/or Guarantors of the Promissory Note in full, the
     amount of $520,000.00, provided that (a) if any principal under the
     Promissory Note is prepaid to Seller, Seller agrees to promptly
     prepay a portion of the commission at the rate of 4% of the amount of
     principal that was prepaid, (b) if Seller and Purchaser agree in
     writing to extend the Maturity Date of the Promissory Note (it being
     acknowledged by the undersigned that Seller is under no obligation or
     in any way committed to extend the Maturity Date), it is agreed that
     on the original Maturity Date, Purchaser shall pay to Purchaser's
     Broker an amount equal to 4% of the principal balance of the Note as
     of the original Maturity Date in full satisfaction of Seller's and
     Purchaser's obligations to pay Purchaser's Broker any additional
     amount as a commission in this transaction, and if such payment by
     Purchaser to Purchaser's Broker is made, Seller agrees that upon
     payment by Purchaser and/or Guarantors of the Promissory Note in
     full, the amount paid by Purchaser to Purchaser's Broker shall be
     credited against the principal balance due Seller, which credit shall
     be given as of the date that the Promissory Note is paid in full, and
     (c) in no event shall any unpaid portion of the commission be payable
     or paid  nor shall the credit against the principal balance due
     Seller as described in clause (b) above be given if payment of the
     Promissory Note is made, in whole or in part, by way of a foreclosure
     action and/or a deed in lieu of foreclosure.

<PAGE>

Waikele Country Club Inc.
October 29, 2008
Page 7

                 Seller hereby instructs Escrow Agent to pay the portion
     of the commission, set forth in clause (i) of the first paragraph of
     this Section 30, in the amount of $400,000.00 to Purchaser's Broker
     at Closing from the Purchase Price to be otherwise disbursed to
     Seller at Closing in accordance with this Agreement.  In no event
     shall any portion of the commission be payable or paid  to
     Purchaser's Broker unless and until the conditions specified above
     have been satisfied whether the occurrence of such conditions is
     prevented or does not occur by reason of Seller's default,
     Purchaser's default or otherwise.

                 Seller has also agreed to pay a brokerage commission to
     Dornbush & Co, Ltd., which is Seller's real estate broker in this
     transaction ("Seller's Broker").  The brokerage commission to be paid
     to Seller's broker is to be paid by Seller pursuant to the terms of a
     separate agreement, which provides (i) upon the Closing, the amount
     of $200,000.00 shall be payable and paid to Seller's Broker; and (ii)
     after the Closing upon payment by Purchaser and/or Guarantors of the
     Promissory Note in full, the amount of $260,000.00, provided that (a)
     if any principal under the Promissory Note is prepaid to Seller,
     Seller agrees to promptly prepay a portion of the commission at the
     rate of 2% of the amount of principal that was prepaid, and (b) in no
     event shall any unpaid portion of the commission be payable or paid
     to Seller's Broker if payment of the Promissory Note is made, in
     whole or in part, by way of a foreclosure action and/or a deed in
     lieu of foreclosure.

                 Seller hereby instructs Escrow Agent to pay the portion
     of the commission, set forth in clause (i) of the third paragraph of
     this Section 30, in the amount of $200,000.00 to Seller's Broker at
     Closing from the Purchase Price to be otherwise disbursed to Seller
     at Closing in accordance with this Agreement.  In no event shall any
     portion of the commission be payable or paid to Seller's Broker
     unless and until the conditions specified above have been satisfied
     whether the occurrence of such conditions is prevented or does not
     occur by reason of Seller's default, Purchaser's default or
     otherwise.

                 To facilitate the payment of any commission to be paid to
     Purchaser's Broker and/or to Seller's Broker after Closing, Seller
     and Buyer agree that all principal payments to be made under the
     Promissory Note, including, without limitation, any prepayment of
     principal under the Promissory Note, shall be made by Purchaser to
     Title Guaranty Escrow Services, Inc., 235 Queen Street, Honolulu,
     Hawaii 96813, Attention:  Ms. Ann Kurihara (the "Payment Escrow").
     Upon receipt of any such principal payment, the Payment Escrow shall
     promptly (i) disburse any commission due Purchaser's Broker to
     Purchaser's Broker, (ii) disburse any commission due Seller's Broker
     to Seller's Broker, and (iii) disburse the balance of such principal
     payment to Seller.  It is further agreed that upon the payment of the

<PAGE>

Waikele Country Club Inc.
October 29, 2008
Page 8

     Promissory Note and all sums due under the Mortgage in full, the
     recording of the release of Mortgage and the release of the UCC
     Financing Statement shall be effected through the Payment Escrow.
     The cost of setting up and maintaining the Payment Escrow and all
     related charges shall be paid by Purchaser.

                 The terms and conditions of this Section 30 shall survive
     the Closing."

     5.    In all other respects, the terms and conditions of the
Agreement shall remain unchanged and in full force and effect.

     By signing below, Dong Yang Enterprise Inc. ("Dong Yang") hereby
acknowledges that Dong Yang is not being released from its obligations
under the Agreement, as amended by the terms of this letter agreement, all
rights of Waikele Golf Course, LLC against Dong Yang being hereby expressly
reserved.

     By signing below, Lexon, Inc., Mr. Alexander K. H. Yoo, Dornbush &
Co., Ltd. and William Dornbush are agreeing to the terms of Section 30 as
set forth above.

     If this is acceptable to you, please sign a copy of this letter,
which may be signed in counterparts, and return it to our counsel, Bob
Schneider.

                                  Very truly yours,

                                  WAIKELE GOLF COURSE, LLC

                                  By   /s/ Janis G. Yee
                                       ------------------------------
                                       Janis G. Yee
                                       Vice President

Accepted and agreed as of October 29, 2008.

WAIKELE COUNTRY CLUB INC.

By:  /s/ Ji Yong Park
     ------------------------------
     Name:  Ji Yong Park
     Title: President

<PAGE>

Waikele Country Club Inc.
October 29, 2008
Page 9

Acknowledged as of October 29, 2008.

DONG YANG ENTERPRISE INC.

By:  /s/ Ji Yong Park
     ------------------------------
     Name:  Ji Yong Park
     Title: Its Vice President

Acknowledged, accepted and agreed as of
October 29, 2008.

LEXON, INC.

By:  /s/ Alexander Yoo
     ------------------------------
     Name:   Alexander Yoo
           -------------------------
     Title: President
           -------------------------

/s/ Alexander K. H. Yoo
------------------------------
Alexander K. H. Yoo

Acknowledged, accepted and agreed as of
October 29, 2008.

DORNBUSH & CO., LTD.

By:  /s/ William J. Dornbush
     ------------------------------
     Name:  William J. Dornbush
           -------------------------
     Title: President
           -------------------------

/s/ William Dornbush
------------------------------
William Dornbush

<PAGE>

                            PROMISSORY NOTE

                                                   Honolulu, Hawaii
$13,250,000.00                                     November 12, 2008

     FOR VALUE RECEIVED, WAIKELE COUNTRY CLUB INC., a Hawaii corporation
(the "Maker"), promises to pay to the order of WAIKELE GOLF COURSE, LLC, a
Delaware limited liability company, whose address is 900 North Michigan
Avenue, Suite 1400, Chicago, Illinois 60611, or at such other place as the
holder of this Note (the "Holder") may from time to time designate, the
principal sum of THIRTEEN MILLION TWO HUNDRED FIFTY THOUSAND AND NO/100
U.S. DOLLARS (U.S. $13,250,000.00), together with interest on the principal
sum from the date hereof at the interest rates specified below on the
principal balance remaining unpaid.

     INTEREST.  Interest on the principal balance of this Note shall
accrue at the rate of seven percent (7%) per annum.  Interest shall be
computed on the basis of the actual number of days elapsed from the date of
advance by Holder through the date of payment.

     PAYMENTS; MATURITY DATE.

           (a)   Monthly payments of interest on the outstanding principal
balance of this Note shall be payable commencing on the 12th day of
December, 2008, and continuing on the same day of every month thereafter
until the Maturity Date (as defined below).

           (b)   All unpaid principal and accrued interest shall be due
and payable in full, unless sooner paid, on May 12, 2009 (the "Maturity
Date").

           (c)   With each payment of interest that is made by the Maker
to the Holder under the terms of this Note, the Maker shall also pay to the
Holder the amount of the Hawaii General Excise Tax  and the City and County
of Honolulu surcharge imposed on and paid by the Holder by reason of the
payment of the interest, which general excise tax and surcharge shall be
payable at the rate of 4.712% (which rate shall be adjusted if the rate
imposed by the State of Hawaii and/or the City and County of Honolulu is
increased or decreased in the future).  The Maker acknowledges and agrees
that the amount of each excise tax payment, (and any other similar tax
imposed by any governmental entity), when added to the interest payment,
shall yield to the Holder, after deduction of such tax, a net amount equal
to that which the Holder would have realized from such payment of interest
had no such tax been imposed.

           (d)   The Maker may prepay all or any portion of the principal
amount of this Note at any time, without premium or penalty.

                                   1

<PAGE>

           (e)   Except in the case of an election to the contrary by the
Holder and to the extent permitted by law, all payments will be applied
first to unpaid charges under this Note and that certain Mortgage,
Assignment of Leases and Rents, Security Agreement, Financing Statement and
Fixture Filing, executed by the Maker in favor of the Holder (the
"Mortgage"), which Mortgage secures this Note, then fees, then interest and
then principal.  Absent manifest error, the records of the Holder shall be
determinative of all amounts owed under this Note and the Mortgage.

           (f)   Principal, interest and all other amounts to be paid
under this Note shall be payable in lawful money of the United States of
America in immediately available funds.

     DEFAULT.  If the Maker shall default in the payment of interest,
principal, fees or charges when due under this Note; or if any of the other
Events of Default (as defined in the Mortgage) shall occur; then, and in
any such event, the Holder shall have the option to declare the unpaid
principal sum of this Note, together with all interest accrued thereon, and
all fees, charges and other sums payable under the Note and the Mortgage to
be immediately due and payable.  Thereupon, the unpaid principal balance,
all accrued but unpaid interest and all fees, charges and other sums shall
become and be due and payable without presentment, demand, protest or
notice of any kind, all of which are expressly waived.  Upon (i) any of the
Events of Default (as defined in the Mortgage) that is continuing, (ii) the
Maturity Date, and/or (iii) maturity by acceleration, the unpaid principal
balance and all such fees, charges and other sums shall thereafter bear
interest until fully paid at a rate equal to twelve percent (12%) per
annum.  Failure to exercise this option shall not constitute a waiver of
the right to exercise the option in the event of the same or any subsequent
default.

     U.S. MONEY.  Principal and interest shall be payable in lawful money
of the United States of America in immediately available funds.

     ATTORNEYS' FEES.  The Maker promises to pay the Holder's attorneys'
fees and such other expenses incurred in enforcing the payment of this Note
or any portion of the indebtedness evidenced hereby and/or enforcing any
term or provision of the Mortgage, whether or not suit is brought hereon.

     WAIVER.  Except as otherwise provided herein, the Maker of this Note
and all others who may become liable for any part of this obligation
severally waive presentment, protest, demand and notice of protest, demand,
dishonor and nonpayment of this Note and consent to any number of renewals
or extensions of the time of payment hereof and to any release of parties
obligated hereunder or forbearance in the enforcement of this Note.

     NO ORAL WAIVER, MODIFICATION OR CANCELLATION.  No provision in this
Note may be waived, modified or canceled orally, but only by an agreement
in writing and signed by the party against whom enforcement of any waiver,
modification, discharge or cancellation is sought.

     GOVERNING LAW.  This Note shall be governed by and construed
according to the laws of the State of Hawaii.

                                   2

<PAGE>

     LIMITATIONS ON INTEREST.  Notwithstanding any provision to the
contrary contained in this Note or the Mortgage, the rate and amount of
interest which the Maker shall be required to pay to the Holder shall in no
event, contingency or circumstance exceed the maximum rate or amount
limitation, if any, imposed by applicable law.  If, from any circumstance
whatsoever, performance by the Maker of any obligation under the Note or
the Mortgage at the time performance shall be due (including, without
limiting the generality of the foregoing, the payment of any fee, charge or
expense paid or incurred by the Maker which shall be held to be interest),
shall involve transcending the limits of validity prescribed by law, if
any, then, automatically, such obligation to be performed shall be reduced
to the limit of such validity prescribed by applicable law.  If,
notwithstanding the foregoing limitations, any excess interest shall at the
maturity of this Note be determined to have been received, the same shall
be deemed to have been held as additional security.  The foregoing
provisions shall never be superseded or waived and shall control every
other provision of all agreements between the Holder and the Maker.

     NOTICES.  Any notice required or permitted hereunder shall be in
writing and shall be deemed delivered (a) as of the date of delivery, if
personally delivered; (b) as of the date of delivery (whether accepted or
refused) established by the United States Post Office return receipt or an
overnight courier's proof of delivery as the case may be; or (c) upon
receipt, as determined by telecopier confirmation by the sending
telecopier, if sent by telecopier, to Seller or Purchaser at the addresses
or telecopier numbers specified below:

     Holder:                Waikele Golf Course, LLC
                            900 North Michigan Avenue, Suite 1400
                            Chicago, Illinois 60611
                            Attention:  Mr. Stephen A. Lovelette
                            Telecopier No.:  (312) 915-2310

     With a copy to:        Schneider Tanaka Radovich Andrew &
                            Tanaka, LLLC
                            1100 Alakea Street, Suite 2100
                            Honolulu, Hawaii 96813
                            Attention:  Scott D. Radovich, Esq.
                            Telecopier No.:  (808) 792-3920

     Maker:                 Waikele Country Club Inc.
                            1750 Kalakaua Avenue, Suite 3603
                            Honolulu, Hawaii 96826
                            Telecopier No.:  (808) 952-5339

     With a copy to:        Aaron S. H. Yoo, Esq.
                            Attorney-at-Law
                            1440 Kapiolani Boulevard, Suite 1201
                            Honolulu, Hawaii 96814
                            Telecopier No.:  (808) 973-0825

                                   3

<PAGE>

Notices shall be addressed to any other person and addressed and sent by
telecopier to any other telecopy number as may be specified from time to
time by any party by written notice to the other party.

     TIME IS OF THE ESSENCE.  Time is of the essence in the payment and
performance of the Maker's obligations under this Note and the Mortgage.

     COMMERCIAL TRANSACTION.  The Maker acknowledges that this Note
evidences indebtedness incurred by the Maker in a commercial transaction.

     IN WITNESS WHEREOF, the Maker has caused this Note to be duly
executed as of the date specified above.

                                  WAIKELE COUNTRY CLUB INC.,
                                  a Hawaii corporation

                                  By
                                       ------------------------------
                                       Name:   Ji Yong Park
                                       Title:  President

                                                        Maker

                                   4

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