Document:

EXHIBIT 10.1

 

EXHIBIT 10.1

SUMMARY OF
NONEMPLOYEE DIRECTOR

COMPENSATION

Effective as of January 1, 2005, nonemployee directors will receive the following annual retainer:

	 	•  	$77,000 paid in cash in monthly installments; and
	 
	 	•  	$75,000 paid in Company common stock to be awarded on the first business day after the
annual meeting under the Company’s 2005 Long-Term Incentive Plan, subject to the approval
of such plan by the Company’s stockholders (the “2005 Plan”), and deferred at the election
of the nonemployee directors until the director’s retirement or cessation of service on the
Board. The $75,000 annual stock-based award will not be considered pensionable
“compensation” of any nonemployee director under the Company’s Nonemployee Directors’
Retirement Plan.

Meeting fees payable in the form of stock-based awards in respect of 50 shares of Company common
stock for each Board meeting attended and 40 shares of Company common stock for each committee
meeting attended will continue to apply under the 2005 Plan.

Reimbursement for medical expenses under the Company’s Supplemental Medical Plan for Nonemployee
Directors and for annual tax and financial planning services are generally eliminated as of March
1, 2005.

The Company’s Nonemployee Directors’ Retirement Plan is also eliminated as of March 1, 2005 for
nonemployee directors who first commence service with the Company after such date.

7EXHIBIT 10.2

 

EXHIBIT 10.2

UST INC.

NONEMPLOYEE DIRECTORS’ STOCK OPTION PLAN

NONSTATUTORY STOCK OPTION AGREEMENT

     NONSTATUTORY
STOCK OPTION AGREEMENT, entered into pursuant to the UST Inc. Nonemployee
Directors’ Stock Option Plan (the “Plan”), between UST Inc., a Delaware corporation (the
“Company”), and NAME, a Director (the “Director”) of the Company.

     WHEREAS,
the Company desires, by affording the Director an opportunity to purchase shares of
its common stock, $.50 par value (“Common Stock”), as
hereinafter provided and subject to the terms
and conditions hereof, to carry out the purpose of the Plan;

     NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the parties hereto have agreed and do hereby agree as follows:

     1. The
Company hereby grants to the Director a Nonstatutory Stock Option (the “Option”) to
purchase an aggregate of NUMBER shares of Common Stock, subject to adjustment as provided in
paragraph 6 hereof, on the terms and conditions herein set forth.

     2. The
purchase price of the shares of Common Stock covered by the Option shall be PRICE per
share.

     3. The
Option shall become exercisable on VEST DATE and shall expire at the close of business
on EXPIRE DATE. The Option may be exercised either for the total number of shares granted, or from
time to time for less than the total number.

     4. The holder of the Option (the “Optionee”) shall have none of the rights of a shareholder
with respect to the shares covered by the Option until the shares are issued or transferred to such
Optionee upon exercise of the Option.

     5. The Option shall not be transferable other than by will or by the laws of descent and
distribution and shall be exercisable during the Optionee’s lifetime only by him or her or by his
or her guardian or legal representative. The Option shall not confer on the Optionee any right to
continued service as a Director.

     6. In the event of any change in the outstanding shares of Common Stock, through declaration
of stock or other dividends or distributions with respect to such shares, through restructuring,
recapitalization or other similar event or through stock splits, change in par value, combination
or exchange of shares, or the like, then the number or kind of shares covered by the Option and/or
the purchase price of the shares covered by the Option, as appropriate, shall be adjusted
proportionately, as necessary to reflect equitably such change; provided, however, that any
fractional shares resulting from such adjustment shall be eliminated.

8

 

     7. Upon the exercise of the Option, the purchase price shall be paid in full in cash.

     8. The Optionee shall be responsible for payment of any and all taxes resulting from the
exercise of an Option. Taxes for this purpose include, but are not limited to, federal and state
income taxes and employment taxes. If the Company is obligated to withhold any taxes in connection
with such exercise, the Company shall hold the stock certificate representing the shares of Common
Stock for which the Option has been exercised until the payment of such taxes is made by the
Optionee to the Company. If the payment is not made within a “reasonable” period of time, the
Company shall be entitled to sell the shares represented by the stock certificate.

     9. The Option shall be exercised by written notice of election substantially in the form of
Exhibit A hereto and delivered in person or by regular mail to the Company at its principal
executive office. Such notice shall specify the number of shares to be purchased and shall be
accompanied by a check in payment of the full amount. To the extent that an Option is not
exercised by an optionee when it becomes initially exercisable, it shall not expire but shall be
carried forward and shall be exercisable until the expiration of the exercise period. Partial
exercise shall be permitted.

     10. If for any reason during the term of an unexercised and unexpired Option, the Optionee
shall cease to be a member of the Board, such Option may be exercised by the Optionee (or, in the
event of his or her death, by his or her estate) until the expiration date. An Option that is not
exercisable at the time of the termination of such Optionees status as a member of the Board shall
become exercisable, according to its terms, on the date that is six months following the date of
grant.

     11. The sale and delivery of any shares of Common Stock hereunder is subject to approval of
any governmental agency which may, in the opinion of counsel, be required in connection with the
authorization, issuance or sale of Common Stock. No Common Stock shall be issued under the Option
prior to compliance with such requirements and with the Company’s listing agreement with the New
York Stock Exchange (or other Exchange upon which the Company’s shares may then be listed).

     12. This Agreement is made under the provisions of the Plan and shall be interpreted in a
manner consistent with it. To the extent that any provision in this Agreement is inconsistent with
the Plan, the provisions of the Plan shall control. Unless otherwise defined herein or otherwise
required by the context, all terms used herein shall have the meaning ascribed to them in the Plan.

     13. Any notices required or permitted hereunder shall be addressed to the Company, at 100 West
Putnam Avenue, Greenwich, Connecticut 06830, or to the Optionee at the address set forth below, as
the case may be, and deposited, postage prepaid, in the United States mail; provided, however, that
a notice of election pursuant to paragraph 9 hereof shall be effective only upon receipt by the
Company of such notice

 

 

and all necessary documentation, including payment. Either party may, by notice to the other
given in the manner aforesaid, change his, her or its address for future notices.

     14. This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware. The Company’s Nominating & Compensation Committee shall have final authority to
interpret and construe the Plan and this Agreement and to make any and all determinations under
them, and its decision shall be binding and conclusive upon the Optionee and his or her legal
representative in respect of any questions arising under the Plan or this Agreement.

     15. This Agreement shall bind and inure to the benefit of the Company, its successors and
assigns, and the Optionee and his or her personal representatives and assigns.

     16. This Agreement may be amended or modified at any time by an instrument in writing signed
by the parties hereto.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer
thereunder duly authorized and the Director has hereunto set his or her hand, all as of the day and
year set forth below.

	 	 	 	 	 
	 	 	UST Inc.
	 
	 	 	 	 
	ACCEPTED:
	 	 	 	 
	 
	 	 	 	 
	

	 	By:	 	 
	 

	 	 	 	 
	Director     
                 
                 
                 
Date

	 	Name:
	 	Richard A. Kohlberger
	

	 	Title:
	 	Senior Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	Address
	 	 	 	 
	 
	 	 	 	 
	REJECTED:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	Director     
                 
                 
                 
Date
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	Address<PAGE>
                                                                    EXHIBIT 10.1

                             BUY AND SELL AGREEMENT
                                FOR VACANT LAND

Office of Investment Property Associates, Inc., REALTOR, Grand Haven, Michigan
Phone: 616-846-6900               Fax:  616-846-9251

1. AGENCY. The Selling Broker/Salesperson is acting as (check one):  X  Agent of
the Buyer     Dual Agent (with written, informed consent of both Buyer and
Seller)     Other (specify):    .

2. BUYER'S OFFER. The undersigned ("Buyer") offers and agrees to purchase the
vacant land (and all appurtenances) located in the City of Norton Shores,
Muskegon County, Michigan, which is legally described as set forth on EXHIBIT A,
attached hereto and made a part hereof (the "Premises"). This Agreement shall be
binding on both parties on the date of Seller's acceptance of Buyer's offer or
on the date of Buyer's acceptance of Seller's counter-offer, if any, which date
shall hereinafter be referred to as the "Execution Date".

3. PURCHASE PRICE.

     a.  Amount. The Purchase Price for the Premises is Eight Hundred Forty
         Thousand and no/100 Dollars ($840,000.00).

     b.  Terms of Payment. Buyer shall pay the full Purchase Price to Seller
         upon execution and delivery of a warranty deed and performance by
         Seller of the closing obligations specified in this Agreement.

4. CONTINGENCY PERIOD AND EXTENSIONS. The Contingency Period hereunder shall be
120 days from the Execution Date of this Agreement. However, the Buyer may elect
to extend the Contingency Period (and the time period for the Buyer to satisfy
those contingencies specified in paragraphs 21 and 22(e) hereof) as follows:

     a.  Buyer shall be entitled to extend the Contingency Period for one thirty
         (30) day period by delivering to the Seller and the Escrow Agent a
         notice extending the Contingency Period, and to the Escrow Agent a
         check in the amount of Thirty Thousand and No/100 Dollars ($30,000.00).

     b.  Buyer may extend the Contingency Period by a second thirty (30) day
         period by delivering to the Seller and the Escrow Agent, prior to the
         expiration of the Contingency Period (as extended), a notice extending
         the Contingency Period, and to the Escrow Agent a check in the amount
         of Thirty Thousand and No/100 Dollars ($30,000.00).

     c.  If the transaction described herein does not close for any reason other
         than Seller's default, then each of the Thirty Thousand and No/100
         Dollar ($30,000.00) payments described in this paragraph 4 shall be
         non-refundable to the Buyer and shall be paid to the Seller as of the
         expiration or termination of this Agreement. If the transaction does
         close, then each such payment shall apply to the Purchase Price.

5. PROVISION OF DILIGENCE AND LAND DIVISION. Within ten (10) days after the
Execution Date hereof, Seller shall provide to Buyer all information in Seller's
possession or control relating to the Premises, including but not limited to the
following: title information, tax information, surveys, environmental site
assessments or information, restrictive covenant information, association
information, easements, contracts and agreements relating to the Premises,
drainage information, utility information, and zoning information. Furthermore,
if a land division approval is required under the Michigan Land Division Act,
Seller agrees to apply for such division at Seller's expense within ten (10)
days after the Execution Date, and Buyer's obligations hereunder shall be
contingent upon Seller's obtaining of such split approval within forty-five (45)
days after the Execution Date.

6. PROPERTY TAXES. Seller shall pay property taxes and installments of special
assessment first billed before the closing. Property taxes for the current year
will be prorated on a calendar year basis as if paid in arrears (so that all
taxes billed or to be billed in the year of closing shall be deemed to apply to
such calendar year). Calendar year tax levies will be estimated, if necessary,
using taxable value on the day of closing, reduced to a per diem amount and
prorated to the day of closing, with Seller paying for January 1 to day of
closing. No post-closing adjustments shall be made due to inaccuracy of closing
estimates of real estate taxes.

7. ASSESSMENTS. Buyer will assume or pay any assessment balance which remains
after Seller pays for any assessment installments which are due and payable on
or before the closing date.

8. TITLE INSURANCE AND SURVEY.

     a.  Survey. An ALTA survey showing all encroachments and easements of
         record may be obtained by Buyer and at its cost. The survey shall be
         certified and acceptable to Buyer, and shall confirm that the Premises
         contains a minimum of 80,000 sq. ft.

     b.  Title Insurance. Seller shall, at its expense, provide Buyer with a
         standard ALTA owner's policy of title insurance without standard
         exceptions in the amount of the Purchase Price, effective as of the
         date of closing. Seller shall provide to Buyer a commitment to issue
         such policy insuring marketable title vested in Buyer, including a tax
         status report, within ten (10) days after the Execution Date. The title
         commitment and title policy shall be effective as of the date of the
         closing, and shall include those endorsements requested by Buyer.
         Seller shall pay for the cost of the title policy and title commitment,
         except that Buyer shall pay the costs of the endorsements.

                                       1
<PAGE>

     c.  Defects. If the title commitment or survey disclose any exception,
         condition or encroachment not acceptable to Buyer in its sole
         discretion, Buyer may give Seller notice of such unacceptable condition
         within sixty (60) days following the Execution Date. Seller shall then
         have thirty (30) days to correct same, to Buyer's satisfaction, at
         Seller's cost. If Seller is unable or unwilling to do so, or fails to
         do so, Buyer may terminate this Agreement, have its deposit returned to
         it, and neither Buyer nor Seller shall have any further obligation
         hereunder. Buyer shall be deemed to have waived this right if Buyer
         fails to notify the Seller of any objections within sixty (60) days
         following the Execution Date. However, notwithstanding anything to the
         contrary herein, if an unacceptable exception, condition, or
         encroachment first arises after the date of the survey or title
         commitment, then Buyer may give notice to the Seller of such
         unacceptable condition during the period sixty (60) days after Buyer's
         first notice thereof, and in such event, the parties' rights as
         specified above in this paragraph 8(c) (including Seller's right to
         cure for thirty (30) days thereafter and Buyer's right to terminate in
         the absence of a cure) shall apply separately with respect to such new
         condition.

9. CONVEYANCE. Upon performance by Buyer of the closing obligations specified in
Section 16 below, Seller shall convey the Premises to Buyer by warranty deed
(with 100% of Seller's division rights under the Michigan Land Division Act),
subject only to those easements and building and use restrictions of record to
which Buyer has not objected under Section 8.

10. WARRANTIES OF SELLER. Except as otherwise provided or acknowledged in this
Agreement, Seller represents and warrants to, and agrees with Buyer as follows:

     a.  Seller's interest in the Premises shall be transferred to Buyer on the
         closing date, free from liens, encumbrances and claims of others.

     b.  The performance of the obligations of Seller under this Agreement will
         not violate any contract, indenture, statute, ordinance, judicial or
         administrative order of judgment applicable to Seller or the Premises.

     c.  There is no claim, dispute, litigation or proceeding pending, or to
         Seller's knowledge threatened, against or involving Seller or the
         Premises, and Seller does not know or have reason to know of any ground
         for any such litigation or proceeding which could have an adverse
         impact on Buyer or Buyer's title to and use of the Premises, before or
         after closing.

     d.  Seller has no knowledge of the presence on the Premises of any toxic or
         hazardous substances or of any underground storage tanks.

     e.  There are no pending or threatened condemnation proceedings against the
         whole or any part of the Premises.

     f.  There is no pending or proposed special assessment affecting or which
         may affect the Premises or any part of the Premises.

     g.  With respect to underlying land contracts or purchase money mortgages,
         the sale will not accelerate indebtedness, increase interest rates, or
         impose penalties and sanctions.

     h.  Seller, through the person(s) executing this Agreement, has full power
         and authority to enter into, and to assume and perform all the
         obligations arising under this Agreement.

     i.  Seller has and can deliver to Buyer good and marketable title to the
         Premises, subject only to those exceptions permitted by this Agreement,

     j.  All necessary action to approve, execute, deliver, and perform this
         Agreement has been taken by Seller, and this Agreement is the valid and
         binding obligation of Seller, enforceable against Seller in accordance
         with its terms. All representations and warranties made herein shall be
         deemed to be reaffirmed at the closing and shall survive the closing,
         nor shall such representations and warranties be merged in the
         execution and delivery of any deed or document of conveyance or
         assignment, notwithstanding the lack of reference to said survival in
         said documents, nor shall the survival of said representations and
         warranties be affected by any investigation, verification or approval
         by any party hereto or by anyone acting on behalf of any such party.

11. WARRANTIES OF BUYER. Except as otherwise provided for in this Agreement,
Buyer represents and warrants to Seller that:

     a.  The performance of Buyer's obligations under this Agreement will not
         violate any contract, indenture, statute, ordinance, judicial or
         administrative order or judgment applicable to Buyer.

     b.  There is no litigation or proceeding pending, or to Buyer's knowledge
         threatened, against or involving Buyer, and Buyer does not know or have
         reason to know of any ground for any such litigation or proceeding
         which could have an adverse impact on Seller or Seller's interests
         under this Agreement.

12. CONDEMNATION. If between the Execution Date and the closing date, all or any
part of the Premises is taken pursuant to any power of eminent domain, Seller
shall immediately notify Buyer of such occurrence, and either party may
terminate this Agreement by written notice to the other within 15 days after the
date of the taking. If neither party elects to terminate this Agreement, there
shall be no reduction of the Purchase Price and at closing Seller shall assign
to Buyer whatever rights Seller may have with respect to any eminent domain
award.

13. CLOSING. The closing shall be held no later than the date ten (10) days
following the expiration of the Contingency Period. If the parties do not agree
otherwise, the closing shall be held at 10:00 a.m. on the date ten (10) days
following the expiration of the Contingency Period, at the Grand Haven office of
Transnation Title Insurance Company.

                                       2
<PAGE>
14. RIGHT OF ENTRY; POSSESSION. After the Execution Date, Buyer and its agents
shall have the right to enter upon the Premises for purposes of inspections and
tests; provided, however, that such inspections and testing shall not cause
physical damage to the Premises. Seller shall tender possession of the Premises
to Buyer at closing.

15. SELLER'S CLOSING OBLIGATIONS. At closing, Seller shall deliver the following
to Buyer:

     a.  The warranty deed.

     b.  Any other documents required by this Agreement to be delivered by
         Seller.

16. BUYER'S CLOSING OBLIGATIONS. At closing, Buyer shall deliver to Seller the
following:

     a.  The Purchase Price, paid by cashier's check or other immediately
         available funds, as adjusted by the apportionments and assignments in
         accordance with this Agreement.

     b.  Any other documents required by this Agreement to be delivered by
         Buyer.

17. ACCEPTANCE; EARNEST MONEY. Buyer gives Seller until 5:00 p.m. on the date
three (3) days after the date of Buyer's execution of this Agreement to accept
this offer. Buyer shall deposit $25,000.00 with Transnation Title Insurance
Company ("Escrow Agent") by 5:00 p.m. on the second business day following the
Execution Date, evidencing Buyer's good faith, to be held by Escrow Agent and to
apply on the Purchase Price. If this offer is not accepted or the title is not
marketable or if any Buyer contingency herein is not satisfied or waived, this
deposit shall be promptly refunded upon Buyer's request.

18. DISCLOSURE OF PRICE AND TERMS. The Purchase Price and the terms of this sale
may be disclosed by the Grand Rapids Association of REALTORS in the ordinary
conduct of its business. Deletion of this paragraph shall not be considered a
counter-offer which would require a counter-acceptance,

19. CREDIT REPORTS. Buyer agrees that REALTOR may give Seller information about
Buyer contained in a credit report which may be furnished to REALTOR by a
reporting agency.

20. ADVICE OF COUNSEL. Buyer acknowledges that REALTOR has recommended that
Buyer retain an attorney to review this Agreement, pass upon marketability of
title, ascertain that the terms of the sale are adhered to before the
transaction is closed and advise with respect to the provisions in Section 21
hereof.

21. ENVIRONMENTAL NOTICE AND PROVISIONS. There are numerous federal, state and
local laws and regulations which are intended to control and/or correct
environmental contamination. These laws and regulations may expose owners,
tenants, buyers and other users of property to liability for damages and/or
clean-up costs occasioned by environmental contamination, regardless of fault
and regardless of when in time the contamination occurred. The costs associated
with the clean-up of environmental contamination can be substantial.
Accordingly, it is prudent for each party to a real estate transaction (whether
seller, buyer, landlord or tenant) to seek legal and technical counsel from
professionals experienced in such matters so that each may be better apprized of
their respective rights and responsibilities with respect to environmental
contamination. Especially is such counsel to be sought where a party has reason
to believe that hazardous wastes or substances may have been or are now used,
stored, handled or disposed of on the Premises, or underground storage tanks
were or now are present on the Premises.

No real estate broker or salesperson involved in this transaction possesses the
expertise necessary to assess environmental risks or to determine the presence
of environmental contamination. The real estate brokers/salespersons involved in
this transaction do not make independent investigations as to environmental
contamination with respect to any property, nor do they make any representation
regarding the presence or absence, now or in the past, of hazardous waste or
substances, or underground storage tanks on the Premises, nor with respect to
any environmental conditions affecting the Premises.

The term "hazardous wastes or substances" as used in this Section includes, but
is not limited to, petroleum based products, paints and solvents, lead, cyanide,
DDT, printing inks, acids, pesticides, ammonium compounds asbestos, PCBs, and
other chemical products. Hazardous wastes or substances and underground storage
tanks may be present on all types of real property and this notice therefore
applies to any transaction involving any type of real property, whether improved
or unimproved.

The Buyer's obligations hereunder shall be contingent upon Buyer's review and
approval of the environmental condition of the Premises. Buyer shall be
entitled, at its expense, to conduct any environmental investigations and
diligence as desired by the Buyer, including a baseline environmental assessment
or due care plan (either of which the Buyer may elect to submit for acceptance
by the Michigan Department of Environmental Quality). Buyer shall have one
hundred twenty (120) calendar days after the Execution Date to exercise its
right to terminate this Agreement due to the environmental condition of the
Premises, otherwise it shall be deemed to have been waived.

                                       3
<PAGE>

22. CONTINGENCIES. Buyer's obligation to close the transaction contemplated
hereby is subject to and conditioned upon the following contingencies (in
addition to the contingencies specified elsewhere in this Agreement), all of
which shall be satisfied or waived in Buyer's sole discretion and at Buyer's
sole cost. Buyer shall have the specified number of calendar days after the
Execution Date to exercise its right to terminate this Agreement due to a
failure of any of these contingencies, otherwise such contingency shall be
deemed to have been waived.

     a.  Buyer's Board of Directors approval. 45 days.

     b.  Wetland report. 45 days.

     c.  Title Commitment and Survey. 60 days.

     d.  Buyer's investigation of site feasibility for intended use and Buyer's
         site plan design. 90 days.

     e.  Environmental conditions and governmental approvals for Buyer's
         intended use, including zoning approvals and all banking-related
         regulatory approvals from ail relevant governmental agencies or
         departments. 120 days.

23. OTHER PROVISIONS. This Agreement is subject to the following additional
terms:

     a.  Assignment. Buyer may assign its interest in this Agreement without
         prior consent of Seller. Buyer shall, coincident with such assignment,
         provide a copy of the assignment instrument to Seller, which instrument
         shall provide that the assignee assumes and agrees to perform Buyer's
         obligations hereunder.

     b.  Rezoning. Seller agrees to cooperate with Buyer in application to
         re-zone the Premises for Buyer's intended use and in obtaining any
         other required governmental approvals including, but not limited to,
         site plan approval, provided that Buyer shall pay all out-of-pocket
         costs in connection with such applications and approvals.

     c.  Brokers. The Buyer and Seller agree that Seller shall pay to Seller's
         Realtor a brokerage fee of three and one-half percent (3-1/2%) of the
         Purchase Price. Buyer shall be responsible for all brokerage fees due
         to Investment Property Associates, Inc. Buyer and Seller indemnify each
         other against any losses or liabilities arising from claims of the
         other's broker.

     d.  Allocation of Costs. Buyer and Seller shall each share one-half (1/2)
         of any charges of Transnation Title Company in connection with the
         closing of the transaction hereunder. Buyer shall pay for the recording
         of the warranty deed. Seller shall pay all state and local transfer
         taxes arising out of this transaction. Seller shall pay for the
         recording of any documents necessary to clear the title at the closing.

     e.  Specific Performance. If Seller defaults, Buyer shall be entitled to
         the remedy of specific performance, in addition to any other legal or
         equitable remedies available to Buyer.

24. INDEX OF EXHIBITS.

         EXHIBIT A        Legal Description          [Reference Section 2]

25. NOTICES. Unless otherwise stated in this Agreement, a notice required or
permitted by this Agreement shall be sufficient if in writing and either
delivered personally or by certified mail or other form of documentable delivery
addressed to the parties at their addresses specified in the proximity of their
signatures below. Any notices given by mail shall be deemed to have been given
as of the date of the postmark.

26. ADDITIONAL ACTS. Buyer and Seller agree to execute and deliver such
additional documents and to perform such additional acts as may become necessary
to effectuate the transfers contemplated by this Agreement.

27. ENTIRE AGREEMENT. This Agreement contains the entire understanding of the
parties with respect to the sale of the Premises. All contemporaneous or prior
negotiations have been merged into this Agreement. This Agreement may be
modified or amended only by written instrument signed by the parties to this
Agreement. This Agreement shall be governed by and construed in accordance with
the laws of the State of Michigan.

28. BUYER'S ACKNOWLEDGEMENT. By signing below, Buyer acknowledges having read
and received a copy of this Agreement.

Dated: July 19, 2004                        COMMUNITY SHORES BANK, a
                                            Michigan banking corporation

                                            By: /s/ Heather Brolick
                                                --------------------------
                                                Heather Brolick
                                            Its President
Buyer's Address:                            1030 W. Norton Avenue
                                            Muskegon, MI 49441
                                            Phone No. (Bus): 231-780-1845
Federal Identification Number:

                                       4
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SELLER'S ACCEPTANCE

29. The above offer is hereby accepted SUBJECT TO TERMS OF COUNTER OFFER
                                       ---------------------------------------
By signing below, Seller acknowledges having read and received a copy of this
Agreement.

Dated: 7/21, 2004                    Norton Shores Hotel LLC
                                     ----------------------
                                     Seller [ILLEGIBLE]

                                     /s/ John Mann
                                     --------------------
                                     Seller
Seller's Address:                    Phone No. (Res):
                                     Phone No. (Bus):
Note: Please sign as you wish your name to appear on the final papers.
Seller(s) Social Security Number or Federal Identification Number:
Seller gives REALTOR above named until________am/pm,________________, 200____to
obtain Buyer's written acceptance of counter offer, if any.

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BUYER'S RECEIPT OF ACCEPTANCE
30. Buyer acknowledges receipt of Seller's acceptance of Buyer's offer. If the
acceptance was subject to changes from Buyer's offer, Buyer agrees to accept
those changes, all other terms and conditions remaining unchanged.

Dated: 7/26, 2004 3pm                /s/ Heather D. Brolick
                                     ----------------------
                                     Buyer Its President

                                     ----------------------
                                     Buyer

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SELLER'S RECEIPT OF ACCEPTANCE

31. Seller acknowledges receipt of a copy of Buyer's acceptance of the
counter-offer (if Seller made a counter-offer).

Dated: 8/2, 2004                     Norton Shores Hotel LLC
                                     -----------------------
                                     Seller

                                     by /s/ John Mann
                                     -----------------------
                                     Seller

                                       5
<PAGE>

                                    EXHIBIT A
                               LEGAL DESCRIPTION

OUTLOT E

PART OF THE SOUTHEAST QUARTER OF SECTION 21, TOWNSHIP 9 NORTH, RANGE 16 WEST,
CITY OF NORTON SHORES, MUSKEGON COUNTY, MICHIGAN, MORE EXACTLY DESCRIBED AS
FOLLOWS: COMMENCING AT THE SOUTHEAST SECTION CORNER OF SAID SECTION 21: THENCE
NORTH 88 degrees24'59" WEST ALONG THE SOUTH LINE OF SAID SECTION, 50.00 FEET:
THENCE NORTH 01"36'54" EAST BEING PARALLEL TO THE EAST LINE OF SAID SECTION,
33.00 FEET TO THE POINT OF BEGINNING: THENCE NORTH 88 degrees24'59" WEST BEING
PARALLEL TO SAID SOUTH LINE 267.49 FEET TO A POINT OF INTERSECTION WITH A
NON-TANGENT CURVE, SAID CURVE HAVING A RADIUS OF 71.24 FEET AND A CENTRAL ANGLE
OF 25 degrees40'20": THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE TO THE
RIGHT A DISTANCE OF 31.92 FEET, SAID ARC SUBTENDED BY AN CHORD WHICH BEARS NORTH
11 degrees11'38" WEST A DISTANCE OF 31.64 FEET TO AN INTERSECTION WITH A
NON-TANGENT LINE: THENCE NORTH 01 degrees39'28" EAST 287.00 FEET: THENCE SOUTH
88 degrees20'32" EAST, 274.29 FEET: THENCE SOUTH 01 degrees36'54" WEST BEING
PARALLEL TO SAID EAST LINE, 317.50 FEET TO THE POINT OF BEGINNING: CONTAINING
2.00 ACRES OF LAND, MORE OR LESS, AND SUBJECT TO A 10.0 FOOT UTILITY EASEMENT
OVER THE WEST 10.00 FEET OF THE ABOVE DESCRIBED PARCEL: AND ALSO SUBJECT TO A
30.00 FOOT COUNTY DRAIN EASEMENT DESCRIBED AS FOLLOW: PART OF THE SOUTHEAST
QUARTER OF SECTION 21, TOWNSHIP 9 NORTH, RANGE 16 WEST, CITY OF NORTON SHORES,
MUSKEGON COUNTY, MICHIGAN MORE EXACTLY DESCRIBED AS FOLLOWS: COMMENCING AT THE
SOUTHEAST SECTION CORNER OF SAID SECTION 21: THENCE NORTH 88 24'59" WEST ALONG
THE SOUTH LINE OF SAID SECTION, 50.00 FEET: THENCE NORTH 01 degrees36'54" WEST
BEING PARALLEL TO THE EAST LINE OF SAID SECTION, 33.00 FEET TO THE POINT OF
BEGINNING: THENCE NORTH 88 degrees24'59" WEST BEING PARALLEL TO SAID SOUTH LINE,
1252.14 FEET: THENCE NORTH 02 degrees32'06" EAST, 30.00 FEET: THENCE SOUTH 88
degrees24'59" EAST BEING PARALLEL TO SAID SOUTH LINE, 1210.20 FEET: THENCE NORTH
49 degrees18'20" EAST, 15.49 FEET: THENCE NORTH 01 degrees36'54" EAST BEING
PARALLEL TO SAID EAST LINE, 606.27 FEET: THENCE SOUTH 8822'02" EAST, 30.00 FEET:
THENCE SOUTH 01 degrees36'54" WEST BEING PARALLEL TO SAID EAST LINE, 646.66
FEET TO THE POINT OF BEGINNING.

                                       6
<PAGE>
                     GREATER LANSING ASSOCIATION OF REALTORS
                    COUNTER OFFER TO BUY AND SELL AGREEMENT

                    2 ACRE PAD SITE, MT. GARFIELD AND HARVEY
                            NORTON SHORES, MICHIGAN
                             -----------------------
           (Sec Exhibit A of Buy and Sell Agreement Referenced below)

This Agreement to be part of and incorporated into the Buy and Sell contract
between COMMUNITY SHORES BANK, a Michigan banking corporation, as BUYER and
NORTON SHORES HOTEL, L.L.C., a Michigan limited liability company, as SELLER
dated July 19, 2004, regarding the above-captioned property.

--------------------------------------------------------------------------------
                                                            Date: July 21, 2004

The above-referenced Buy and Sell Contract is amended as follows:

(1)      Paragraph 3: Purchase Price amount is to be $875,000.00.

(2)      Paragraph 4 shall be changed to 90 days from 120 days (sub-Paragraphs
         A, B and C shall remain as written.

(3)      Paragraph 6 shall have the following language inserted...using taxable
         value on the day of closing "MULTIPLIED BY THE RATIO OF THE CURRENT
         TAXABLE VALUE OVER THE PREVIOUS YEAR'S TAXABLE VALUE AND MULTIPLIED BY
         THE PREVIOUS YEAR'S TAX BILL" reduced to a per diem amount...

(4)      Paragraph 10 shall be amended as follows: (A) (F) and (G) deleted and
         (C), (E) and (I) will be headed by the words "To Seller's knowledge".

(5)      Paragraph 11: Add the language from Item 10(J) as new item 11 (C).

(6)      Paragraph 22(E) shall be changed to 90 days from 120 days.

(7)      The deed conveyed will restrict the use of the property as a lodging or
         hotel facility. The attached Exhibit B will become a part of this Buy
         and Sell Agreement.

                                       1
<PAGE>

 ALL OTHER TERMS AND CONDITIONS REMAINING UNCHANGED.

BUYER'S ACCEPTANCE OF MY COUNTER OFFER MADE BY SELLER WILL BE BINDING ON THE
SELLER ONLY WHEN AND IF THE SELLER SIGNS BELOW ACKNOWLEDGING RECEIPT BY SELLER
OF A COPY OF THE BUYER'S ACCEPTANCE OF SELLER'S COUNTER OFFER. IF SELLER
RECEIVES MULTIPLE OFFERS OR MULTIPLE ACCEPTANCES OF COUNTER OFFERS PRIOR TO
WRITTEN ACKNOWLEDGMENT BY SELLER OF AN ACCEPTED COUNTER OFFER, SELLER WILL BE
ENTITLED TO CHOOSE CONCLUSIVELY THE TRANSACTION BY WHICH SELLER WILL BE BOUND.

THIS COUNTER OFFER WILL BE VOID IF NOT ACCEPTED BY BUYER BY MONDAY, JULY 26,
2004 AT 5:00P.M.

--------------------------------------------------------------------------------

SELLER UNDERSTANDS THAT CONSUMMATION OF THE SALE OR TRANSFER OF THE PROPERTY
DESCRIBED IN THIS AGREEMENT WILL NOT RELIEVE THE SELLER OR ANY LIABILITY THAT
THE SELLER MAY HAVE UNDER THE MORTGAGE(S) OR OTHER INDEBTEDNESS(ES) TO WHICH THE
PROPERTY IS SUBJECT UNLESS OTHERWISE AGREED TO BY THE LENDER OR REQUIRED BY LAW
OR REGULATION.

RECEIPT IS ACKNOWLEDGED BY SELLER OF A COPY OF THIS COUNTER OFFER AGREEMENT.

                                        DATE July 21 2004, 4:00 A.M. OR P.M.
                                                                        ----

RECEIPT IS ACKNOWLEDGED BY SELLER OR BUYER OF A COPY OF THIS CONTRACT.
                           ------

                                           Norton Shores Hotel LLC
WITNESS /s/ [ILLEGIBLE]                 X  by /s/ John Mann            member
        ------------------------------     -----------------------------------

WITNESS                                 X
        ------------------------------     -----------------------------------

                                               Date 7/21 2004, 3:00 A.M. OR P.M.

--------------------------------------------------------------------------------
ACCEPTANCE OF THIS CONTRACT AND RECEIPT OF A COPY ARE ACKNOWLEDGED BY SELLER OR
BUYER

WITNESS /s/ [ILLEGIBLE]                 X  /s/ Heather D. Brolick
        ------------------------------     -----------------------------------
                                               Its President

WITNESS                                 X
        ------------------------------     -----------------------------------

                                       2
<PAGE>
                                    EXHIBIT B

No Hotel Covenant: Buyer agrees and covenants that no hotel will be permitted or
allowed to be constructed the Site. The deed from Seller shall contain a
restrictive covenant running with the land that shall prohibit the construction
or operation of a hotel, motel, or similar overnight accommodation in form
acceptable to Seller.

[HB]
7/26/04

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]