Re: Laurus Master Fund, Ltd./American Water Star
File No. 61005.0022
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STATEMENT OF BREACH OR NON-PERFORMANCE
AND NOTICE OF ELECTION TO SELL
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NOTICE: ALL INTERESTS IN THE PROPERTY WHICH ARE JUNIOR AND INFERIOR
TO THAT OF THE DEED OF TRUST MAY BE SUBJECT TO BEING TERMINATED
BY THE SUBJECT TRUSTEE'S SALE.
NOTICE IS HEREBY GIVEN of the following described breach or
non-performance of that certain Deed of Trust, Assignment of Rents,
Security Agreement and Fixture filing executed by American Water Star,
Inc., a Nevada corporatin, as trustor, in whch Laurus Master Fund, Ltd.,
is named as the original beneficiary, and Chicago Title Insurance
Company, is named as the origianl trustee, dated as of July 2, 2005, and
recorded on July 28, 2005, as Instrument No. 2005-1068073 in the Official
Records of Maricopa County, Arizona (the "Deed of Trust").
Laurus Master Fund., Ltd., is the present owner and holder of certain
Secured Convertible Term Notes (collectively, the "Note") executed by
American Water Star, Inc., a Nevada corporation, is currently obligated
to the Beneficiary.
The following breach or non-performance has occurred:
1. As of November 15, 2005, principal balance due and owing is
$6,286,098.61, plus interest, late fees and miscellaneous fees of
$422,746.14, totaling $6,708,844.75; and accrues at a per diem of
$1,746.14.
2. Late charges and/or default interst due on the above;
3. Payments made by Beneficiary for the protection of its
security;
4. Interest on the above.
PLUS ALL ACCRUING PAYMENTS, FEES, COSTS, TAXES, INSURANCE, ETC.
Any and all additional breaches and on-performance and incidents or
events of default which occur under the Note or the Deed of Trust after
the date of the Statement, shall be deemed to be breaches, non-performances
and incidents or events of default included in this Statement.
Beneficiary, hereby appoints Xxxxx X. Xxxxxxxx, Esq., Xxxxx & Xxxxxx
L.L.P., One Arizona Center, 000 Xxxx Xxx Xxxxx, Xxxxxxx, Xxxxxxx, 00000-
0000, as its attorney-in-fact for the purpose of receiving and accepting
any cash required for full reinstatements of the Note and the purpose of
receiving and accepting any cash required for full reinstatements of the
Note and the Deed of Trust, pursuant to A.R.S. Section 33-813(A). Said
attorney is directed to accept only cash, cashier's check or money order
for the funds required for reinstatement of the Note and the Deed of Trust
pursuant to statute and is authorized to accept said sums necessary for
reinstatement only at the offices set forth above. Any additional sums
due by the terms of the Note after the date hereof must be paid at the
time of reinstatement.
Based upon the foregoing, Beneficiary has elected to sell or cause to
be sold the Property, in compliance with A.R.S. Section 33-801, et seq.
DATED: November 16, 2005.
Beneficiary:
LAURUS MASTER FUND, LTD.
By: /s/
Its: Authorized Agent
STATE OF NEW YORK )
) ss.
COUNTY OF NEW YORK )
This instrument was acknowledged before me on this 16th day of
November, 2005, by Xxxxx ...., authorized agent of Laurus Master Fund,
Ltd.
/s/ Xxxxxxxxxxx X. Xxxx
Notary Public
My Commission Seal:
Xxxxxxxxxxx X. Xxxx
Notary Public State of New York
No. 01RY6130781
Qualified in State of New York
Commission Expires July 18, 2009
