EXHIBIT 10.11
LOAN FORGIVENESS AGREEMENT
AGREEMENT dated as of the 29th day of November, 1997 between URT
INDUSTRIES, INC. ("URT"), a Florida corporation with offices at 0000 Xxxx
Xxxxxxxxxx Xxxxx Xxxxxxxxx, Xxxxxxxxxx, Xxxxxxx 00000, and PEACHES ENTERTAINMENT
CORPORATION ("PEC"), a Florida corporation with offices at 0000 Xxxx Xxxxxxxxxx
Xxxxx Xxxxxxxxx, Xxxxxxxxxx, Xxxxxxx 00000.
WHEREAS, in order to cause PEC's Plan of Reorganization, as modified,
to be approved and confirmed by the U.S. Bankruptcy Court, URT lent
$700,000 to PEC and, in exchange, PEC delivered to URT its promissory
note in such principal amount dated January 27, 1997 (the "Note"), and
WHEREAS, URT wishes to further assist PEC by forgiving a portion of
the principal and interest payable under the Note,
IT IS, THEREFORE, AGREED:
1. In consideration of $1.00 and other good and valuable consideration
received by it, URT agrees to and does hereby forgive and waive its right to
receive one-half (1/2) of the Seven Hundred Thousand Dollar ($700,000) principal
amount due to it under the Note, together with all interest on the principal
amount so forgiven which accrued from the date of the Note to the date of this
Agreement. Accordingly, the Note shall be treated as if partially pre-paid in
the amount set forth above, and the unpaid principal balance on the Note, as of
the date of this Agreement, shall be Three Hundred and Fifty Thousand Dollars
($350,000), which shall be repaid in
four equal installments on the Installment Payment Dates, as such term is
defined in the Note, with interest on such Three Hundred and Fifty Thousand
Dollars ($350,000) to be paid at the times and at the rate set forth in the
Note.
2. Except as set forth above, the Note shall remain in full force and
effect, and nothing contained herein shall be deemed a modification or waiver of
any of URT's rights under the Security Agreement dated January 27, 1997 between
URT and PEC, or the Mortgage with Assignment of Rents, Security Agreement and
Fixture Filing dated as of January 27, 1997 between URT and PEC.
IN WITNESS WHEREOF, each of the undersigned has executed this document as
of the date and year first set forth above.
URT INDUSTRIES, INC.
By: /s/ Xxxxx Xxxx
----------------------------------
Name: Xxxxx Xxxx
Title: Executive Vice-President
PEACHES ENTERTAINMENT CORPORATION
By: /s/ Xxxxx Xxxx
----------------------------------
Name: Xxxxx Xxxx
Title: Executive Vice-President
-2-
