Exhibit 10.13(a)
December 29, 2003
Xxxxxxx Philippe, President
Xxxxxxx & Xxxxx Xxxxxxxx
Xxxxxxxxx Xxxxxx
Xxxxx, Xxxxx
RE: LOAN AGREEMENT: U.S. $300,000.00
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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.
$300,000.00 to Xxxxxxx & Xxxxx Philipco, "Owner" of Sonesta St. Xxxxxx Hotel,
Luxor ("Hotel"), by assumption of obligations, dated as of January 8, 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. $300,000.00, to be advanced on or about January 8, 2004
(the "Loan").
PURPOSE: The Loan is intended to be used by Xxxxxxx & Xxxxx Philipco
("Borrower") to assist in financing the reconfiguration and renovation of
portions of the lobby, including to relocate the business center from the lobby
to the lower level, and add a lobby food and beverage outlet.
REPAYMENT OF LOAN: The Loan shall be repaid to Sonesta International Hotels
Limited ("Lender"), in currency of the United States, in eight (8) 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 March 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 4.25% per annum.
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, 2004, interest shall accrue on the amount of
the Loan, and interest, then outstanding at the rate of eight percent (7%) 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
January 8th, 2004.
Borrower: Lender:
Xxxxxxx & Xxxxx Philipco Sonesta International Hotels Limited
By: /S/ By: /S/
-------------------------- -------------------------
Xxxxxxx Xxxxxxxx Xxxxxxx Xxxxx X. Xxxxxxxxx
President Vice President
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/
-------------------------
Xxxxxxx Xxxxxxxx Xxxxxxx
Date: January 8th, 2004
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