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To: StockDung who wrote (72)	2/28/2001 11:28:12 AM
From: StockDung	Respond to of 93

Beverly Hills, Ltd. Announces Lawsuit. Issue: Nov 6, 1998 ATLANTA, Nov. 6 /PRNewswire/ -- Beverly Hills, Ltd. (OTC Bulletin Board: BLTD) announced it has filed a lawsuit in the U.S. District Court for the Central District of California, against Knight Corporation, for itself and as the general partner of L.A. Partners, and against Knight's President and majority stockholder, Eugene Axelrod. On January 18, 1998, BLTD, then known as Hawk International, Inc., entered into an agreement with Knight, acting on behalf of L.A. Partners, to acquire Beverly Hills Country Club, in Los Angeles, California, in exchange for $1.5 million in cash and 1,500,000 shares of BLTD's $10 preferred stock. The parties also contemplated the development by BLTD of an expanded and diversified enterprise, utilizing the Beverly Hills Country Club name and registered trademarks. In July 1998, during the course of negotiations to modify their relationship, Knight notified BLTD, that the agreement was terminated, but the negotiations continued as the parties endeavored to resolve their differences. However, in August 1998, Knight filed a lawsuit in the U.S. District Court in Hawaii, seeking damages for alleged trademark infringement and a declaration of its rights with respect to the agreement. BLTD has moved to dismiss the Hawaii lawsuit for lack of jurisdiction and on other grounds, and BLTD's motion is to be heard by the Hawaii district court on December 21, 1998. BLTD's lawsuit charges that Knight's purported termination of the agreement was improper and an anticipatory breach of the agreement, and also cites various misrepresentations by Knight and Axelrod in relation to the subjects of the agreement. In its lawsuit, BLTD asks the court to reform the agreement to reflect the parties' full understanding respecting BLTD's rights to use the registered trademarks and for specific performance of the agreement, as well as injunctive relief to prevent any disposition of Beverly Hills Country Club or the registered trademarks in derogation of its rights. As additional or alternative relief, BLTD seeks an award of damages for fraud and for breach of contract, including a return of the sums it paid to L.A. Partners pursuant to the agreement, and a declaration of its rights. Said Michael Hanlon, BLTD's President, "Our agreement with L.A. Partners represented, and if the present disputes can be resolved still represents, an excellent business opportunity, which affords the potential for substantial financial benefits both to Beverly Hills, Ltd. and to L.A. Partners. We remain hopeful that our differences with Knight and Mr. Axelrod can be amicably resolved, but if that proves impossible Beverly Hills, Ltd. will vigorously pursue all of its legal rights and remedies." COPYRIGHT 1998 PR Newswire Association, Inc. COPYRIGHT 2000 Gale Group