On June 10, 2010, the Company purchased The Big Easy, a gaming
vessel for the Gulfport Project, for an aggregate purchase price of $4,264,500, payable: (a) by issuance of a secured note payable
to the seller of $2,975,000 (the Secured Note), (b) issuance of an unsecured note payable to the seller of $600,000 (Unsecured
Note), fees of $414,500 and cash of $275,000. The Secured Note is collateralized by the gaming vessel and both notes are guaranteed
by an officer of the Company. The Secured Note is payable on June 11, 2011 and bears interest at 14.5%, per annum, payable $35,000,
per month, commencing June 11, 2010. The Unsecured Note bears interest at 14.5%, per annum, and is payable monthly, in an amount
equal to 2% of the monthly gross gaming revenue generated from operations, as defined, until June 2012 when all principal and interest
are due. Since September 17, 2010, both notes have been in default and the interest rate was increased to 20%, per annum.
As of June 30, 2011, the due dates of both notes were extended
in support of the Companys current project in Gulfport, MS and the Trustee of the Cruise Holdings bankruptcy estate, holding
the mortgage and promissory note payable has consented; (1) to require no payments through June 30, 2012; (2) that the
collection fees and accrued interest be paid on or before October 1, 2012; (3) extend the due date of the balance of the obligation
for the principal and accrued interest to July 1, 2013.
In May 2011, the equity investor informed RBMS it would not
move forward with the financing of the Gulfport Project unless the casino was land based. As a result, it was decided
the vessel be sold at a public auction, however, the public sale did not yield sufficient funds to eliminate the fees and mortgage
debt. The Company received $459,746 in the reduction of accounts payable from the public sale which was paid directly
to vendors of the Company. As of June 30, 2011, the Company has recorded a loss of $4,191,891 on the sale of the gaming vessel. The
Company is currently in discussions with the mortgage holder and the trustee to reach an agreement to extinguish the mortgage of
$2,975,000 and note payable of $600,000 through the issuance of equity.