EXHIBIT 10.6(g)
THIRD AMENDMENT TO LOAN AGREEMENT
Reference is made to the Loan Agreement made as of the 18th day of December,
1996 in the City of Boston, Massachusetts, U.S.A. by and between SONESTA
INTERNATIONAL HOTELS LIMITED (or its assignee) organized and existing under the
laws of The Bahamas and having its principal place of business at 000 Xxxxxxxxx
Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx, X.X.X. and represented in the signature of that
Agreement by XXXXX X. XXXXXXXXX, VICE PRESIDENT (hereinafter referred to as the
"Lender"), and MASTERS OF TOURISM organized and existing under the laws of The
Arab Republic of Egypt and having its principal place of business at Xxxxx Xxxxx
Avenue, El Abour Building, Xx. 00, Xxxx 00, Xxxxxxxxxx, Xxxxx, Xxxxx and
represented in the signature of that Agreement by XXXXXXXX XXXXXX XXXXX XXX,
CHAIRMAN (hereinafter referred to as the "Borrower") ("Loan Agreement"), as
amended by an "Amendment to Loan Agreement," dated April 29, 1997 ("the
Amendment"), and further amended by a "Second Amendment to Loan Agreement,"
dated September 15, 1998 (the "Second Amendment"). This Agreement shall
constitute the "Third Amendment" to the Loan Agreement.
WHEREAS, the purpose of the Loan Agreement was to provide U.S. $1,000,000
to the Borrower as a loan to finance the expansion and improvement of Sonesta
Beach Resort, Sharm El Sheikh (the "Hotel"), as described in the Loan Agreement;
and
WHEREAS, the purpose of the Amendment was to provide an additional U.S.
$500,000 to the Borrower as a loan in connection with the further expansion of
the Hotel, but Borrower subsequently informed Lender that the additional U.S.
$500,000, described in the Amendment, was no longer required by the Borrower in
order to complete the expansion and improvement of the Hotel, and the further
expansion of the Hotel - such expansion and improvements being referred to as
"Improvements" under the Loan Agreement, as amended by the Amendment; and
WHEREAS, pursuant to the Second Amendment, Loan principal was to be repaid
in seven (7) annual installments of U.S. $142,857, together with interest, with
the first payment due January 1, 1999, and said principal payment was made
during 1999, but accrued interest of U.S. $78,750 remained unpaid as of December
31, 1999, leaving a Loan balance of U.S. $935,893 as of December 31, 1999; and
WHEREAS, the parties now desire to amend the Loan Agreement to provide for
repayment of the Loan in monthly installments over five (5) years;
NOW THEREFORE, for consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree to amend the terms of the Loan Agreement,
as previously amended by the Amendment and the Second Amendment, as follows:
1. Loan Balance. The parties agree and acknowledge that the outstanding
balance of the Loan as of December 31, 1999 including all accrued and unpaid
interest, was U.S. $935,893.
2. Repayment of Loan. The Loan balance of U.S. $935,893 shall be repaid in
sixty (60) equal monthly payments, together with interest at the "Prime" rate
charged by United States Trust Company, Boston, Massachusetts (currently 8.5%),
from time to time; provided that for purposes of the Loan the interest shall be
adjusted twice each year, on January 1 and July 1. Attached hereto as "Exhibit
A" is a payment schedule which illustrates the amortization of the Loan over the
sixty (60) month term (this schedule assumes a constant interest rate of 8.5%
per annum; as noted above, the applicable rate of interest is subject to
adjustment semi-annually). Loan payments shall be due and payable on or before
the last day of each calendar month (i.e. the first payment shall be due on or
before January 31, 2000).
3. As Amended, Loan Agreement Otherwise Unchanged. In all other respects,
the Loan Agreement, as amended, remains unchanged and in full force and effect,
including without limitation the provisions of Section 2.06 of the Loan
Agreement under which the "Operator" under the Management Agreement between
Borrower and Lender is authorized and instructed to make payments directly to
the Lender. (Since the Management Agreement has been amended to delete the
concept of "Owner's Return," such payments from Operator to Lender shall be made
from Hotel funds.)
IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be
executed by their respective, duly authorized signatories as of January 1, 2000.
Witness SONESTA INTERNATIONAL HOTELS LIMITED
s/s By: s/s
------------------- ------------------------------------
Name: Xxxxx Xxxxxxxxx
Title: Vice President
Witness MASTERS OF TOURISM
s/s By: s/s
------------------- ------------------------------------
Name: Xxxxxxx Xxxxxx Xxxxx Xxx
Title: Chairman
Xxxxxxx Xxxxxx Xxxxx Xxx hereby executes this Third Amendment to Loan Agreement
in order to acknowledge his continuing personal guaranty under the Loan
Agreement.
Witness:
s/s By: s/s
------------------- ------------------------------------
Xxxxxxx Xxxxxx Xxxxx Xxx
2
EXHIBIT A
SHARM EXPANSION LOAN
BALANCE 1/1/99 1,085,000
1998 INTEREST PAID IN 1999 (85,000)
INTEREST ON LOAN 1999 78,750
PRINCIPAL PAYMENT DUE 1/1/99, PAID
IN DECEMBER 1999 (142,857)
----------
BALANCE 1/1/2000 $ 935,893
INTEREST
YEAR MONTH PRINCIPAL RATE INTEREST PAYMENT BALANCE
2000 JAN 935,893 8.5% 6,629 (19,200) 923,322
2000 FEB 923,322 8.5% 6,540 (19,200) 910,662
2000 MAR 910,662 8.5% 6,451 (19,200) 897,913
2000 APR 897,913 8.5% 6,360 (19,200) 885,073
2000 MAY 885,073 8.5% 6,269 (19,200) 872,142
2000 JUN 872,142 8.5% 6,178 (19,200) 859,120
2000 JUL 859,120 8.5% 6,085 (19,200) 846,006
2000 AUG 846,006 8.5% 5,993 (19,200) 832,798
2000 SEP 832,798 8.5% 5,899 (19,200) 819,497
2000 OCT 819,497 8.5% 5,805 (19,200) 806,102
2000 NOV 806,102 8.5% 5,710 (19,200) 792,612
2000 DEC 792,612 8.5% 5,614 (19,200) 779,026 156,867
2001 JAN 779,026 8.5% 5,518 (19,200) 765,344
2001 FEB 765,344 8.5% 5,421 (19,200) 751,565
2001 MAR 751,565 8.5% 5,324 (19,200) 737,689
2001 APR 737,689 8.5% 5,225 (19,200) 723,714
2001 MAY 723,714 8.5% 5,126 (19,200) 709,641
2001 JUN 709,641 8.5% 5,027 (19,200) 695,467
2001 JUL 695,467 8.5% 4,926 (19,200) 681,193
2001 AUG 681,193 8.5% 4,825 (19,200) 666,819
2001 SEP 666,819 8.5% 4,723 (19,200) 652,342
2001 OCT 652,342 8.5% 4,621 (19,200) 637,763
2001 NOV 637,763 8.5% 4,517 (19,200) 623,080
2001 DEC 623,080 8.5% 4,413 (19,200) 608,294
2002 JAN 608,294 8.5% 4,309 (19,200) 593,402
2002 FEB 593,402 8.5% 4,203 (19,200) 578,406
2002 MAR 578,406 8.5% 4,097 (19,200) 563,303
2002 APR 563,303 8.5% 3,990 (19,200) 548,093
2002 MAY 548,093 8.5% 3,882 (19,200) 532,775
2002 JUN 532,775 8.5% 3,774 (19,200) 517,349
2002 JUL 517,349 8.5% 3,665 (19,200) 501,813
2002 AUG 501,813 8.5% 3,555 (19,200) 486,168
2002 SEP 486,168 8.5% 3,444 (19,200) 470,412
2002 OCT 470,412 8.5% 3,332 (19,200) 454,544
2002 NOV 454,544 8.5% 3,220 (19,200) 438,563
2002 DEC 438,563 8.5% 3,106 (19,200) 422,470
2003 JAN 422,470 8.5% 2,992 (19,200) 406,262
2003 FEB 406,262 8.5% 2,878 (19,200) 389,940
2003 MAR 389,940 8.5% 2,762 (19,200) 373,502
2003 APR 373,502 8.5% 2,646 (19,200) 356,948
2003 MAY 356,948 8.5% 2,528 (19,200) 340,276
2003 JUN 340,276 8.5% 2,410 (19,200) 323,486
2003 JUL 323,486 8.5% 2,291 (19,200) 306,578
2003 AUG 306,578 8.5% 2,172 (19,200) 289,549
2003 SEP 289,549 8.5% 2,051 (19,200) 272,400
2003 OCT 272,400 8.5% 1,930 (19,200) 255,130
2003 NOV 255,130 8.5% 1,807 (19,200) 237,737
2003 DEC 237,737 8.5% 1,684 (19,200) 220,221
2004 JAN 220,221 8.5% 1,560 (19,200) 202,581
2004 FEB 202,581 8.5% 1,435 (19,200) 184,816
2004 MAR 184,816 8.5% 1,309 (19,200) 166,925
2004 APR 166,925 8.5% 1,182 (19,200) 148,907
2004 MAY 148,907 8.5% 1,055 (19,200) 130,762
2004 JUN 130,762 8.5% 926 (19,200) 112,488
2004 JUL 112,488 8.5% 797 (19,200) 94,085
2004 AUG 94,085 8.5% 666 (19,200) 75,552
2004 SEP 75,552 8.5% 535 (19,200) 56,887
2004 OCT 56,887 8.5% 403 (19,200) 38,090
2004 NOV 38,090 8.5% 270 (19,200) 19,159
2004 DEC 19,159 8.5% 136 (19,295) 0
