EXHIBIT 10.89
[letterhead of URT Industries, Inc.]
August 1, 2000
Peaches Entertainment Corporation
0000 Xxxx Xxxxxxxxxx Xxxx.
Hallandale, FL 33009
Gentlemen:
URT Industries, Inc. ("URT") and Peaches Entertainment Corporation
("Peaches") have entered into discussions pertaining to a proposed transaction
under which Peaches would transfer its Mobile, Alabama property (the "Property")
to URT, URT would forgive the $275,000 debt owed by Peaches to it pursuant to
the April, 1999 loan from URT (the "April, 1999 loan"), URT would be responsible
for the amounts owed pursuant to the outstanding loan from Xxxxxxx Bank or its
successor (the"Bank") which is secured by a first mortgage on the Property,
Xxxxxxx would remain responsible for the amounts owed pursuant to the existing
second and third mortgages to the Xxxxx Xxxx Individual Retirement Account
Rollover (the "Xxxxx Xxxx IRA") and URT, URT would lease the Property to Peaches
for a period of ten years at a base rent of $90,000 per annum, Peaches would
have the option to re-new such lease for a period of ten years at a base rent of
$103,500 per annum, and URT, upon satisfaction of certain conditions, would deed
over to Peaches a 17% interest in the Property. The parties desire to obtain the
Bank's authorization to keep its existing payment schedule in place in
connection with the above-described proposed arrangements and hereby confirm the
following agreement with respect to such proposed arrangements:
1. Peaches will use its best efforts to obtain the Bank's written approval
to keep its existing payment schedule in place in connection with the
above-described proposed arrangements; and
2. URT and PEC agree to execute and deliver to the Bank a proposed lease
under which URT would lease the Property to PEC on the terms described herein if
such approval on the part of the Bank is obtained and the other proposed
arrangements between URT and PEC with respect to the Property are consummated;
and
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3. If such approval is not obtained by November 1, 2000, then the parties
shall not pursue the above-described proposed arrangements, and URT will instead
extend the date by which the April, 1999 loan must be repaid to September 1,
2001.
Please sign below to evidence our agreement.
Very truly yours,
URT INDUSTRIES, INC.
By: /s/ Xxxxx Xxxx
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Executive Vice-President
AGREED TO AND APPROVED:
PEACHES ENTERTAINMENT CORPORATION
By: /s/ Xxxxx Xxxx
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Executive Vice-President
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