<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
AMENDMENT NO. 17
Under the Securities Exchange Act of 1934
MALIBU ENTERTAINMENT WORLDWIDE, INC.
(Name of Issuer)
COMMON STOCK, WITHOUT PAR VALUE
(Title of Class of Securities)
561182106
(CUSIP Number)
RICHARD M. FITZPATRICK
MEI HOLDINGS, L.P.
2200 ROSS AVENUE
SUITE 4200
DALLAS, TEXAS 75201
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
With a copy to:
ROBERT A. PROFUSEK, ESQ.
JONES, DAY, REAVIS & POGUE
599 LEXINGTON AVENUE
NEW YORK, NEW YORK 10022
(212) 326-3939
JANUARY 20, 1999
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with this statement [ ].
<PAGE> 2
CUSIP NO. 561182106 13D-1 PAGE 2
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MEI Holdings, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
39,323,513(1)
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
81.4%
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not reflect additional Common Shares to which the Reporting Person may
be entitled, without the payment of additional consideration, upon the
occurrence of certain future events beyond the Reporting Persons' control.
See Item 5.
<PAGE> 3
CUSIP NO. 561182106 13D-1 PAGE 3
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MEI GenPar, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
39,323,513(1)
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
81.4%
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not reflect additional Common Shares to which the Reporting Person may
be entitled, without the payment of additional consideration, upon the
occurrence of certain future events beyond the Reporting Persons' control.
See Item 5.
<PAGE> 4
CUSIP NO. 561182106 13D-1 PAGE 4
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
HH GenPar Partners
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
39,323,513(1)
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
81.4%
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not reflect additional Common Shares to which the Reporting Person may
be entitled, without the payment of additional consideration, upon the
occurrence of certain future events beyond the Reporting Persons' control.
See Item 5.
<PAGE> 5
CUSIP NO. 561182106 13D-1 PAGE 5
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Hampstead Associates, Inc.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) or 2(f) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
Texas
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
39,323,513(1)
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
81.4%
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not reflect additional Common Shares to which the Reporting Person may
be entitled, without the payment of additional consideration, upon the
occurrence of certain future events beyond the Reporting Persons' control.
See Item 5.
<PAGE> 6
CUSIP NO. 561182106 13D-1 PAGE 6
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
RAW Genpar, Inc.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
39,323,513(1)
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
81.4%
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not reflect additional Common Shares to which the Reporting Person may
be entitled, without the payment of additional consideration, upon the
occurrence of certain future events beyond the Reporting Persons' control.
See Item 5.
<PAGE> 7
CUSIP NO. 561182106 13D-1 PAGE 7
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
InMed, Inc. d/b/a Incap, Inc.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
39,323,513(1)
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
81.4%
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not reflect additional Common Shares to which the Reporting Person may
be entitled, without the payment of additional consideration, upon the
occurrence of certain future events beyond the Reporting Persons' control.
See Item 5.
<PAGE> 8
CUSIP NO. 561182106 13D-1 PAGE 8
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Donald J. McNamara
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
39,323,513(1)
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
81.4%
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not reflect additional Common Shares to which the Reporting Person may
be entitled, without the payment of additional consideration, upon the
occurrence of certain future events beyond the Reporting Persons' control.
See Item 5.
<PAGE> 9
CUSIP NO. 561182106 13D-1 PAGE 9
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Robert A. Whitman
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
39,323,513(1)
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
81.4%
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not reflect additional Common Shares to which the Reporting Person may
be entitled, without the payment of additional consideration, upon the
occurrence of certain future events beyond the Reporting Persons' control.
See Item 5.
<PAGE> 10
CUSIP NO. 561182106 13D-1 PAGE 10
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Daniel A. Decker
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
39,323,513(1)
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
81.4%
- --------------------------------------------------------------------------------
10 TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not reflect additional Common Shares to which the Reporting Person may
be entitled, without the payment of additional consideration, upon the
occurrence of certain future events beyond the Reporting Persons' control.
See Item 5.
<PAGE> 11
This Amendment No. 17 amends and supplements the Statement on Schedule 13D
first filed on June 17, 1996, as amended by Amendments No. 1 through 16 (the
"Schedule 13D"), by MEI Holdings, L.P., a Delaware limited partnership
("Holdings"), and certain other persons.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
Item 6 is hereby amended to add the following at the end thereof:
Holdings and Nomura Asset Capital Corporation ("Nomura") have amended the
terms of the Loan Agreement, dated June 5, 1997, as amended (the "Holdings Loan
Agreement"), between them and the Promissory Note, dated June 5, 1997, as
amended, between them to extend the maturity date of the loan under the
Holdings Loan Agreement to July 20, 1999.
Pursuant to the Holdings Loan Agreement and the related pledge and security
agreement, Holdings pledged 38,323,513 of the Company Common Shares
beneficially owned by it to Nomura to secure its obligations under the Holdings
Loan Agreement. Under the Holdings Loan Agreement, a default or event of default
under the Loan Agreement, dated as of June 27, 1997, as amended (the "Malibu
Loan Agreement"), between Nomura and Malibu Centers, Inc., a wholly owned
subsidiary of the Company ("MCI"), would constitute an event of default under
the Holdings Loan Agreement and a default or event of default under the
Holdings Loan Agreement would constitute an event of default under the Malibu
Loan Agreement. Holdings has guaranteed MCI's obligations under the Malibu Loan
Agreement and MCI has guaranteed Holdings' obligations under the Holdings Loan
Agreement.
Item 7. Material to be Filed as Exhibits
Item 7 is hereby amended to add the following at the end thereof:
Exhibit 99.10 Letter Agreement between MEI Holdings, L.P. and Nomura Asset
Capital Corporation re: Loan Term Extension
<PAGE> 12
SIGNATURES
After reasonable inquiry and to the best of its knowledge and belief,
the undersigned certifies that the information set forth in this statement may
be filed collectively on behalf of it and each of the other signatories hereto.
Date: January 27, 1999
MEI HOLDINGS, L.P.
By: MEI GenPar, L.P.
Its General Partner
By: HH GenPar Partners
Its General Partner
By: Hampstead Associates, Inc.
Its Managing General Partner
By: /s/ Daniel A. Decker
---------------------------------
Daniel A. Decker
Executive Vice President
MEI GENPAR, L.P.
By: HH GenPar Partners
Its General Partner
By: Hampstead Associates, Inc.
Its Managing General Partner
By: /s/ Daniel A. Decker
---------------------------------
Daniel A. Decker
Executive Vice President
HH GENPAR PARTNERS
By: Hampstead Associates, Inc.
Its Managing General Partner
By: /s/ Daniel A. Decker
---------------------------------
Daniel A. Decker
Executive Vice President
HAMPSTEAD ASSOCIATES, INC.
By: /s/ Daniel A. Decker
---------------------------------
Daniel A. Decker
Executive Vice President
<PAGE> 13
RAW GENPAR, INC.
By: /s/ Robert A. Whitman
----------------------------
Robert A. Whitman
President
INMED, INC.
By: /s/ Daniel A. Decker
----------------------------
Daniel A. Decker
President
/s/ Donald J. McNamara
-------------------------------
Donald J. McNamara
/s/ Robert A. Whitman
-------------------------------
Robert A. Whitman
/s/ Daniel A. Decker
-------------------------------
Daniel A. Decker
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
99.10 Letter Agreement between MEI Holdings, L.P. and Nomura Asset
Capital Corporation re: Loan Term Extension
</TABLE>
<PAGE> 1
EXHIBIT 99.10
NOMURA ASSET CAPITAL CORPORATION
Two Financial Center, Building B
New York, New York 10281
January 20, 1999
MEI Holdings, L.P.
c/o The Hampstead Group
Texas Commerce Tower
2200 Ross Avenue
Suite 4200-W
Dallas, Texas 75201
RE: LOAN TERM EXTENSION
Ladies and Gentlemen:
We refer to that certain (i) Loan Agreement in the amount of
$10,000,000 (the "Loan Amount"), dated as of June 5, 1997, between MEI Holdings,
L.P. ("Borrower"), as borrower, and Nomura Asset Capital Corporation ("Lender"),
as lender, as amended by that certain Letter Agreement dated as of June 27,
1997, as amended by that certain Letter Agreement dated as of March 30, 1998, as
amended and restated by that certain Amended and Restated Loan Agreement dated
as of May 8, 1998 whereby the Loan Amount was increased to $20,000,000, as
amended by that certain Letter Agreement dated October 13, 1998 whereby the Loan
Amount was further increased to $21,034,759 (the "Loan Agreement") and (ii) Note
dated June 5, 1997 as amended and restated by that certain Amended and Restated
Promissory Note dated May 8, 1998, as amended by that certain Note Modification
Agreement dated as of October 13, 1998 (the "Note"). Unless otherwise indicated,
capitalized terms herein shall have the meaning ascribed to them in the Loan
Agreement and/or the Note.
1. This letter (this "Letter") shall serve to modify the Loan
Agreement in the following manner:
The definition for "Stated Maturity" is deleted in its
entirety and replaced with the following: "Stated Maturity"
shall mean July 20, 1999.
2. This Letter shall serve to modify the Note in the following
manner:
<PAGE> 2
The definition of "Maturity Date" in the Note is hereby
changed to July 20, 1999.
3. In consideration for Lender extending the Loan, Borrower
consents, upon reasonable prior notice from Lender: (i) to permit Lender and/or
Lender's representatives to have access to, investigate and examine and make
abstracts from the books of account and records (to the extent such books of
account and records are not confidential and are public information) of
Borrower, Borrower's affiliates, Borrower's subsidiaries, Borrower's investors
and Borrower's equity holders (collectively, the "Borrowing Entities") and
investigate the Borrowing Entities at any reasonable time and as often as may be
reasonably desired and, during normal business hours, to discuss the business,
operations, properties and financial and other conditions of the Borrowing
Entity (such investigations with respect to Borrower's investors and Borrower's
equity holders are limited to the business, operations, properties and financial
records to the extent such records are applicable and pertain to the Loan, and
are available to Borrower) and (ii) to cause each of the Borrowing Entities, as
requested by Lender, to meet with Lender and discuss the business operations,
properties and financials of the Borrowing Entities. Borrower acknowledges and
agrees that notwithstanding a case under title 11 of the United States Code,
Lender shall still maintain its rights described in (i) and (ii) above, and
Lender's exercise of such rights shall not be deemed to constitute an action to
collect, enforce or otherwise realize upon the Note or Lender's rights under the
Loan Agreement. Borrower shall authorize the Borrowing Entities'
lenders/creditors to meet with Lender and discuss all matters pertaining to the
Borrowing Entities. If Borrower fails to comply with any provision of this
Paragraph 3, then such non-compliance, at the sole discretion of Lender, shall
constitute, after the expiration of all applicable notice and cure periods as
specified in the Loan Agreement, an Event of Default under the Loan Agreement.
4. Borrower will promptly execute and deliver any and all such
further instruments and documents and take such further action as is reasonably
requested by Lender in connection with the extension of the term of the Loan as
contemplated herein.
5. Borrower shall pay all costs, fees, expenses and charges
incurred in connection with the preparation, administration and enforcement of
this Letter and the transaction contemplated hereby (including, without
limitation, reasonable fees and disbursements of Lender's legal counsel and any
costs and expenses in connection with
2
<PAGE> 3
any diligence undertaken by Lender or any third party agent of Lender as is
contemplated by Paragraph 3 above). Any such costs, fees, expenses and charges
so incurred by Lender and/or Lender's third party agents shall constitute part
of Borrower's obligations under the Loan Documents.
6. Borrower acknowledges and agrees that, as of the date
hereof, its obligations under the Loan as amended by this Letter, are not
subject to any reduction, limitation, impairment or termination for any reason
whatsoever, including without limitation any claim of waiver, release, surrender
or compromise and are not subject to any defense, setoff, counterclaim,
recoupment or termination whatsoever.
7. Borrower acknowledges that Lender's agreement to extend the
"Maturity Date" shall not be deemed to be an agreement by Lender to accept any
additional amendments to the Loan Documents, or to waive any of its rights under
the Loan Documents as modified.
8. If there shall be any inconsistencies between the terms,
covenants, conditions and provisions set forth in the Loan Agreement and the
terms, covenant, conditions and provisions set forth in this Letter, then the
terms, covenants, conditions and provisions of this Letter shall prevail.
Whenever possible, the provisions of this Letter shall be deemed supplemental to
and not in derogation of the terms of the Loan Agreement and any documents
relating thereof.
9. This Letter constitutes the final written expression and
understanding of the parties' intent to modify the Loan, and no prior or
contemporaneous statements, agreements or representations, oral or written,
which may be made by any party, or by any employee or agent acting on that
party's behalf, with respect to the modification thereof, shall be of any force
or effect except to the extent stated in this Letter.
10. Borrower hereby confirms and ratifies all of the terms and
provisions of the Loan Agreement and the Note as amended by this Letter. Except
as expressly amended hereby, all of the terms of the Loan Agreement and the Note
shall remain in full force and effect.
11. This agreement may be executed in any number of separate
counterparts, each of which shall, collectively and separately, constitute one
agreement.
3
<PAGE> 4
Please indicate your acceptance of the terms of this Letter by
signing in the space provided below.
Very truly yours,
NOMURA ASSET CAPITAL CORPORATION
By: /s/ SHERYL MCAFEE
--------------------------------
Name: Sheryl McAfee
Title: Managing Director
ACCEPTED AND AGREED TO:
MEI HOLDINGS, L.P., a Delaware
limited partnership
By: MEI GENPAR, L.P.
its general partner
By: HH GenPar Partners,
its general partner
By: Hampstead Associates, Inc.,
a managing general partner
By: /s/ ROBERT WHITMAN
---------------------------------
Name: Robert Whitman
Title:
4
