Shortfall Funding Agreement between URT Industries, Inc. and Peaches Entertainment Corporation (June 2000)

Summary

URT Industries, Inc. agrees to ensure that Peaches Entertainment Corporation has sufficient funds to meet its operating needs for the year ending April 1, 2001, if PEC's auditor provides an unqualified opinion on its financial statements for the year ended April 1, 2000. If PEC's own funds and debt financing are not enough, URT will provide the necessary funds to cover any shortfall during this period. This agreement is confirmed by both parties' signatures.

EX-10.27 5 d23844_ex10-27.txt EXHIBIT 10.27 EXHIBIT 10.27 [Letterhead of URT Industries, Inc.] June 12, 2000 Peaches Entertainment Corporation 1180 East Hallandale Beach Blvd. Hallandale, FL 33009 Gentlemen: It is the purpose of this letter agreement between URT Industries, Inc. ("URT") and Peaches Entertainment Corporation ("PEC") to confirm that, in consideration of the benefit which would be expected to accrue to URT, URT hereby agrees that, in the event that PEC's auditor, Rachlin Cohen & Holtz LLP, issues an opinion with respect to its financial statements for the year ended April 1, 2000 which is unqualified (i.e., in the same form as the opinion issued with respect to the year ended April 3, 1999), and if funds generated from the operations of PEC, and the proceeds of debt financing, are insufficient to meet PEC's current projected operating requirements during the one year period ending April 1, 2001, then URT will take any necessary action to see that funds are available to cover any such shortfall up to April 1, 2001. Please sign below to evidence our agreement. Very truly yours, URT Industries, Inc. By: /s/ Jason Wolk ---------------------------- Executive Vice President Agreed and Approved: Peaches Entertainment Corporation By: /s/ Brian Wolk ---------------------------- Executive Vice-President