Exhibit 10.13(c)
September 28, 2004
Xxxxxxx Philippe, President
Xxxxxxx & Xxxxx Xxxxxxxx
Xxxxxxxxx Xxxxxx
Xxxxx, Xxxxx
RE: LOAN AGREEMENT: U.S. $500,000.00
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Dear Mr. Philippe:
This letter agreement shall be deemed a Loan Agreement under which Sonesta
International Hotels Limited ("Sonesta") will advance the sum of U.S.
$500,000.00 to Xxxxxxx & Xxxxx Philipco, "Owner" of Sonesta St. Xxxxxx Hotel,
Luxor ("Hotel"), by assumption of obligations, dated as of October 15, 2004,
regarding that certain Management Agreement, dated May 11, 1995, originally
between Philippe Co. for Hotels, as Owner, and Sonesta, as Operator (the
"Management Agreement").
AMOUNT OF LOAN: U.S. $500,000.00, to be advanced on or about October 15, 2004
(the "Loan").
PURPOSE: To assist Owner with the financing of improvements to Sonesta St.
Xxxxxx Hotel, Luxor, including the conversion of the pontoon boat into meeting
space, and infrastructure to support additional rooms.
REPAYMENT OF LOAN: The Loan shall be repaid to Sonesta International Hotels
Limited ("Lender"), in currency of the United States, in ten (10) monthly
installments, each of which shall be due and payable on the first day of each
calendar month. The first monthly payment shall be due and payable January 1,
2005. (The attached "Repayment Schedule" reflects the monthly repayment of the
Loan, together with interest at the Interest Rate.)
INTEREST RATE: The Loan shall be repaid, together with interest at the "Interest
Rate", which shall be equal to 4.75% per annum (the current Prime Rate).
DEFAULT RATE/CHARGES: In the event that the Loan is not repaid in accordance
with this letter agreement, or if any portion of the Loan, or Loan interest,
remains unpaid as of November 1, 2005, interest shall accrue on the amount of
the Loan, and interest, then outstanding at the rate of eight percent (8%) per
annum. Borrower shall also be responsible for reimbursing Lender for any costs
Lender incurs in enforcing this letter agreement, including reasonable
attorney's fees.
AUTHORITY OF LENDER, AS OPERATOR, TO MAKE PAYMENTS: Borrower, as Owner of the
Hotel under the Management Agreement, hereby authorizes and instructs Lender, as
Operator of the Hotel under said Management Agreement, to repay the Loan, in
accordance with this letter agreement, from the income of the Hotel, and to
charge any such amounts used to repay the Loan, or to pay interest thereon, to
the Owner's account.
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PREPAYMENT: Borrower may prepay the Loan, and interest thereon, at any time
without charge or penalty.
In Witness Whereof, the parties have set their hands and seals as of this
October 8th, 2004.
Borrower: Lender:
Xxxxxxx & Xxxxx Philipco Sonesta International Hotels Limited
By: /S/ By: /S/
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Xxxxxxx Xxxxxxxx Xxxxxxx Boy X.X. xxx Xxxx
President Vice President & Treasurer
GUARANTY
The undersigned, Xxxxxxx Xxxxxxxx Xxxxxxx, individually, agrees, jointly and
severally, to guaranty the obligations of the Borrower, Xxxxxxx & Xxxxx
Philipco, under the above loan letter agreement. The Creditor shall have the
right to demand payment from me, on a several basis, without need for first
demanding payment from the Debtor.
By: /S/
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Xxxxxxx Xxxxxxxx Xxxxxxx
Date: October 8th, 2004
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