Document:

ex10-1.htm

    Exhibit
10.1

     

    
      

       

       

      AMENDED
AND RESTATED AGREEMENT

       

       

      THIS
AMENDED AND RESTATED AGREEMENT ("Agreement"), dated the 4th day of December,
2008 ("Effective Date"), is made by and between Fair Isaac Corporation, a
Delaware corporation (the "Company"), on the one hand, and Sandell Asset
Management Corp., a Cayman Islands exempted company ("SAMC"), Castlerigg Master
Investments Ltd., a British Virgin Islands company ("Castlerigg Master
Investments"), Castlerigg International Limited, a British Virgin Islands
company ("Castlerigg International"); Castlerigg International Holdings Limited,
a British Virgin Islands company ("Castlerigg Holdings" collectively with SAMC,
Castlerigg Master Investments, Castlerigg International and Castlerigg Holdings,
the "Sandell Group"), on the other hand.

       

       

      WHEREAS,
the Sandell Group has filed a Schedule 13D with the Securities and Exchange
Commission (the "SEC") on June 29, 2007, as amended on October 12, 2007,
December 7, 2007 and as may be amended from time to time (the "Schedule
13D");

       

       

      WHEREAS,
Directors Guy Henshaw and Tony Christianson have determined not to stand for
re-election to the Company's Board of Directors (the "Board") at the Company's
2009 Annual Meeting of Stockholders (including any adjournment or postponement
thereof, the "2009 Annual Meeting");

       

       

      WHEREAS,
the Company and the Sandell Group previously entered into that certain
agreement, dated as of December 7, 2007 (the "Prior Agreement"), to undertake
certain changes to the composition of the Company's Board; and

       

       

      WHEREAS,
the Company and the Sandell Group desire to amend and restate the Prior
Agreement and have agreed that it is in their mutual interests to enter into
this Agreement as hereinafter described.

       

       

      NOW,
THEREFORE, in consideration of the premises and the representations, warranties,
and agreements contained herein, and other good and valuable consideration, the
parties hereto mutually agree as follows:

       

       

      1.          Representations and
Warranties of the Sandell Group.  The Sandell Group hereby
represents and warrants to the Company as follows:

       

       

      (a)           The Sandell Group has beneficial
ownership of 2,874,000 shares of common stock of the Company and has full power
and authority to enter into this Agreement and to bind the entire number of
shares of the common stock of the Company which it holds, or may hold, including any shares
purchased in the future, to the terms of this Agreement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      (b)           This Agreement constitutes a valid and
binding agreement of the Sandell Group. Except that Thomas E. Sandell may be
deemed to beneficially own shares of the Company and except as set forth in Section
1(a) hereof, no "affiliate" or "associate" (as such terms are defined in the
Securities Exchange Act of 1934, as amended (the "Exchange Act")) of the Sandell Group beneficially
owns any shares or rights to acquire shares of common stock of the
Company.

       

       

      2.          Representations and
Warranties of the Company.  The Company hereby represents and
warrants to the Sandell Group, as follows:

       

       

      (a)           The Company has full power and authority
to enter into and perform its obligations under this Agreement, and the execution and
delivery of this Agreement by the Company has been duly authorized by the Board
and requires no further Board or stockholder action, other than amendment of the
bylaws of the Company to increase the size of the Board by two members.

       

       

      (b)           This Agreement constitutes a valid and
binding obligation of the Company and the performance of its terms does not
constitute a violation of its certificate of incorporation or
bylaws.

       

       

      3.          Directorships.  The
Company agrees that:

       

       

      (a)           Nick Graziano, Allan Loren, John S. McFarlane and an individual selected by the Board who is reasonably
acceptable to the Sandell Group (collectively, the "Nominees") will each be nominated by the Board as a director
at the Company's 2009 Annual Meeting of
Stockholders (including any
adjournment or postponement thereof, the "2009 Annual Meeting");

       

       

      (b)           the Company's Board will recommend a vote
"for" the Nominees at the 2009 Annual Meeting, and shall solicit its
stockholders to vote for such Nominees;

       

       

      (c)           proxies solicited by the
Company's Board will be voted "for" the Nominees at the 2009 Annual Meeting; and

       

       

      (d)           from the date hereof through the term of
his term of office as a
director, each of
Mr. Graziano, Mr. Loren and Mr. McFarlane may each be replaced by another designee
of the Sandell Group who is
reasonably acceptable to the Company's Board in the event that Mr. Graziano, Mr. Loren or Mr. McFarlane dies, is unable to perform his duties
as a director, or, in the
case of Mr. Graziano, is no
longer associated with the Sandell Group.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      4.          Voting at Meetings of
Stockholders.

       

       

      (a)           At the 2009 Annual Meeting, the Sandell Group shall
cause all of the shares of the Company common stock beneficially owned by it to
be present for quorum purposes and to be voted:

       

       

      (i)           For each of (A) the Nominees and (B) the
other candidates
recommended by the Board in the Schedule 14A filed by the Company with the SEC
for election to the Board (the "Company Nominees"); provided that the Company Nominees are each either
current members of the Board or otherwise reasonably acceptable to the Sandell Group;
and

       

       

      (ii)           for the ratification of the selection of
the Company's independent
auditors.

       

       

      5.          The Sandell Group's
Prohibited Conduct.  During the period commencing with the
execution of this Agreement and ending on the earlier to occur of (a) the date
that is eighty (80) days prior to the date of the Company's 2010 Annual Meeting
of Stockholders (provided, however, that if the
Board takes any action to amend the Company's restated bylaws in such a manner
as to increase the time period prior to the 2010 Annual Meeting of Stockholders
by which a holder of the Company's common stock must provide timely notice to
the Company of (i) its nomination of a person or persons to the Board at a
meeting of the Company's stockholders, (ii) or of its proposal to bring business
before a meeting of the Company's stockholders (clause (i) and (ii) together,
the "Stockholder Matters"), then the Standstill Period (as defined herein) shall
expire ten (10) days prior to the date on which a stockholder must give notice
to the Company with respect to any Stockholder Matters), and (b) a material
breach by the Company of its obligations under this Agreement (the "Standstill
Period"), neither the Sandell Group nor any of its controlled affiliates shall,
without the prior written consent of the Company:

       

       

      (a)           acquire or agree to acquire, or publicly
offer or propose to acquire, directly or indirectly, by purchase or otherwise,
any voting securities or direct or indirect rights or options to acquire any
voting securities of the Company or any subsidiary thereof, or any
assets of the Company or any subsidiary or division thereof; provided, however, that nothing herein shall limit the
ability of the Sandell Group to (i) transfer any voting securities or direct or
indirect rights or options
to acquire any voting securities of the Company to any of its controlled
affiliates, so long as such any such controlled affiliates agree to be bound by
the terms of this Agreement and execute a joinder agreement to this Agreement,
in the form attached hereto as Exhibit A (a "Joinder Agreement"), (ii) enter into any swap or other
arrangement whereby it acquires the economic consequences of ownership of the
common stock without also acquiring the voting or other rights, privileges or
powers associated with the
ownership of the underlying common stock, or (iii) subject to applicable law,
including federal securities laws prohibiting insider trading, acquire up to ten
percent (10%) of the outstanding shares of Company common
stock;

       

       

      
        
          
          

        

        
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      (b)           other than as provided in this Agreement, seek or propose to
influence or control the management or the policies of the Company (provided
that the Nominees' actions (or those of their replacements
as contemplated by Section 3) as members of the Board shall not be deemed to
violate the foregoing) or
to obtain representation on the Board (other than the nomination of the
Nominees), directly or indirectly engage in any activities in opposition to the
recommendation of the Board (including the recommendation of the Nominees and
the Company Nominees as directors to be elected
at the 2009 Annual Meeting), submit any proposal
(whether pursuant to Rule 14a-8 or otherwise) or nomination of a director or
directors for stockholder action, or solicit, or encourage or in any way
participate in the
solicitation of, any proxies or consents with respect to any voting securities
of the Company, provided, however, that the foregoing shall not prohibit
the Sandell Group from (i) making public statements (including statements
contemplated by Rule 14a-1(1)(2)(iv) under the Exchange Act), or
(ii) engaging in discussions with other stockholders or (iii) soliciting, or
encouraging or participating in the solicitation of, proxies or consents with
respect to voting securities of the Company (so long as such discussions are in compliance with
subsection (d) hereof (clauses (i), (ii) and (iii), together, "Permitted Actions") with respect to any transaction that
has been publicly announced by the Company involving (1) the recapitalization of
the Company, (2) an acquisition, disposition or sale of assets
or a business by the Company where (A) the consideration to be received or paid
in such transaction exceeds $400 million in the aggregate or (B) requires
approval by the holders of common stock of the Company, or (3) a change of control of the Company
(each, a "Material Transaction"), provided, further, that in the event that one of the
Nominees votes against an acquisition, disposition or sale of assets or a
business by the Company, which is neither a Material Transaction nor an acquisition, disposition
or sale of assets or a business by the Company where the consideration to be
received or paid in such transaction is less than $125 million in the aggregate,
at the Board meeting approving such transaction, the Company will make a public statement that such
Nominee so voted;

       

       

      (c)           make any public announcement with
respect to, or publicly offer to effect, seek or propose (with or without
conditions) a merger, consolidation, business combination or other extraordinary
transaction with or
involving the Company or any of its subsidiaries or any of its or their
securities or assets, provided, however, that nothing in this subsection (c)
shall restrict the Sandell Group from taking Permitted Actions with respect to a
Material Transaction;

       

       

      (d)           (i) form, join or in any way participate
in a "group" as defined in Section 13(d)(3) of the
Exchange Act, and the rules and regulations promulgated thereunder, other than a
"group" that includes all or some lesser number
of persons identified as members of the Sandell Group, or (ii)
enter into any negotiations, arrangements or understandings with any third
parties, other than members of the Sandell Group solely with respect to the
existing members of the Sandell Group, in connection with becoming a "group" as defined in Section 13(d)(3) of the
Exchange Act;

       

       

      (e)           publicly disparage any member of the
Board or management of the Company; or

       

       

      
        
          
          

        

        
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      (f)           publicly seek or request permission to
do any of the foregoing, request to amend or waive any provision of this Section
5 (including, without
limitation, any of clauses (a)-(e) hereof), or make or seek permission to make
any public announcement with respect to any of the
foregoing.

       

       

      6.          Transfer
Restrictions.  The Sandell Group agrees that, during the
Standstill Period, it shall not offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, lend (other than in a customary
commingled brokerage account in the ordinary course of business), or otherwise
transfer or dispose of, directly or indirectly, any shares of common stock or
any securities convertible into or exercisable or exchangeable, directly or
indirectly, for common stock, whether any such transaction described above is to
be settled by delivery of common stock or such other securities, in cash or
otherwise (any such action a "Transfer"), in each case without the prior written
consent of the Company; provided that the foregoing
shall not restrict the Sandell Group from (i) a Transfer of any shares to a
controlled affiliate which agrees to be bound by the terms of this Agreement and
executes a Joinder Agreement, (ii) subject to compliance with law, the Transfer
of shares in either (1) brokers' transactions (within the meaning of Rule 144(g)
of the Securities Act of 1933 (the "Securities Act")), but not in transactions
directly with a market maker (as defined in Section 3(a)(38) of the Exchange
Act), or (2) private Transfers (including transactions with, or indirectly
through, a market maker), in a single Transfer or series of related Transfers,
so long as the Sandell Group, at the time of such Transfer, does not have actual
knowledge, after reasonable inquiry, that such Transfer or series of Transfers
would result in the ultimate purchaser of such shares of common stock from the
Sandell Group beneficially owning, together with its affiliates, following such
Transfer or Transfers, in excess of five percent (5%) of the Company's common
stock in the aggregate, or (iii) Transfers made pursuant to (x) tender offers in
respect of the Company's common stock made by the Company or any third party, or
(y) repurchase offers in respect of the Company's common stock made directly
with the Company.

       

       

      7.          Resignation.  Each
of Mr. Graziano, Mr. Loren and Mr. McFarlane (and any replacement director
appointed to the Board pursuant to Section 3(d)) shall immediately tender his
resignation from the Board, if requested by the Board as a result of a majority
vote of the directors, other than the Nominees, in favor of such resignations
from the Board, in the event that the Sandell Group's beneficial ownership of
the Company's common stock becomes less than three percent (3%) of the
outstanding shares of common stock of the Company solely as a result of a
Transfer or series of Transfers by the Sandell Group.

       

       

      8.          Nondisparagement.  During
the Standstill Period, the Company shall not publicly disparage the Sandell
Group or any member of the management of the Sandell Group.

       

       

      9.          Public
Announcement.  The Company shall disclose the existence of this
Agreement after its execution pursuant to a Company press release reasonably
acceptable to the Sandell Group; however, neither
party shall disclose the existence of this Agreement until the press release is
issued except as otherwise required by applicable law, rule or regulation and

       

       

      
        
          
          

        

        
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      provided
that the non-disclosing party is provided a reasonable opportunity to review and
comment upon any such disclosure and the disclosing party considers in good
faith any such comments provided by the non-disclosing party.

       

       

      10.          Remedies.  The
Company and the Sandell Group acknowledge and agree that a breach or threatened
breach by either party may give rise to irreparable injury inadequately
compensable in damages, and accordingly each party shall be entitled to
injunctive relief to prevent a breach of the provisions hereof and to enforce
specifically the terms and provisions hereof in any state or federal court
having jurisdiction, in addition to any other remedy to which such aggrieved
party may be entitled to at law or in equity. In the event either party
institutes any legal action to enforce such party's rights under, or recover
damages for breach of, this Agreement, the prevailing party or parties in such
action shall be entitled to recover from the other party or parties all costs
and expenses, including but not limited to reasonable attorneys' fees, court
costs, witness fees, disbursements and any other expenses of litigation or
negotiation incurred by such prevailing party or parties.

       

       

      11.          Notices.  All
notice requirements and other communications shall be deemed given when
delivered or on the following business day after being sent by overnight courier
with a nationally recognized courier service such as Federal Express, addressed
to the Company, SAMC, Castlerigg Master Investments, Castlerigg International,
Castlerigg Holdings and Mr. Sandell as follows:

       

       

      The
Company:

       

      Fair
Isaac Corporation

      901
Marquette Avenue, Suite 3200

      Minneapolis,
MN 55402-3232

      Facsimile:  (612)
758-6002

      Attention:
General Counsel

       

      With
a copy to (which shall not constitute notice):

       

      Skadden,
Arps, Slate, Meagher & Flom LLP

      525
University Avenue, Suite 1100

      Palo
Alto, California 94301

      Facsimile:  (650)
470-4570

      Attention:  Kenton
J. King

                   
M.
Amr Razzak

       

      The
Sandell Group:

       

      Sandell
Asset Management Corp.

      40
W 57th Street, 26th Floor

      New
York, NY 10019

      Facsimile:
(212) 603-5725

       

       

      
        
          
          

        

        
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      Attn:
General Counsel

       

      with
copies to (which shall not constitute notice):

       

      Schulte
Roth & Zabel LLP

      919
Third Avenue

      New
York, NY 10022

      Facsimile:
(212) 593-5955

      Attention:  Marc
Weingarten

       

      12.          Entire
Agreement.  This Agreement constitutes the entire agreement
between the parties hereto pertaining to the subject matter hereof and
supersedes all prior and contemporaneous agreements understandings, negotiations
and discussions of the parties in connection therewith not referred to
herein.

       

       

      13.          Counterparts;
Facsimile.  This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, and signature
pages may be delivered by facsimile, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one
and the same agreement.

       

       

      14.          Headings.  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

       

       

      15.          Governing
Law.  This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Delaware, without regard to
choice of law principles that would compel the application of the laws of any
other jurisdiction.

       

       

      16.          Severability.  In
the event one or more of the provisions of this Agreement should, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions
of this Agreement, and this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never been contained herein.

       

       

      17.          Successors and
Assigns.  This Agreement shall not be assignable by any of the
parties to this Agreement.  This Agreement, however, shall be binding
on successors of the parties hereto.

       

       

      18.          Survival of Representations,
Warranties and Agreements.  All representations, warranties,
covenants and agreements made herein shall survive the execution and delivery of
this Agreement.

       

       

      
        
          
          

        

        
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      19.          Amendments.  This
Agreement may not be modified, amended, altered or supplemented except upon the
execution and delivery of a written agreement executed by all of the parties
hereto.

       

       

      20.          Further
Action.  Each party agrees to execute any and all documents,
and to do and perform any and all acts and things necessary or proper to
effectuate or further evidence the terms and provisions of this
Agreement.

       

       

      21.          Consent to
Jurisdiction.  Each of the parties hereby irrevocably submits
to the exclusive jurisdiction of any state court sitting in the State of
Delaware in any action or proceeding arising out of or relating to this
Agreement and each of the parties hereby irrevocably agrees that all claims in
respect of such action or proceeding may be heard and determined in any such
court.

       

       

      22.          Expenses.  Each
party agrees to bear its own expenses in connection with the transactions
contemplated hereby.

       

      

      

      [Signature Page
Follows]

       

       

      
        
          
          

        

        
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      The
Company and the Sandell Group each indicate its agreement with the foregoing by
signing and returning one copy of this agreement, whereupon this letter
agreement will constitute their agreement with respect to the subject matter
hereof.

       

       

      Accepted
to and agreed,

       

       

      as
of the date first written above:

       

      

      Fair
Isaac Corporation

      

      
        
          
            
              	      
                      By:         

                    	      
                      /s/
      Mark N. Greene

                    	
                       

                    
	
                      Name:     Mark
      N. Greene

                    
	
                      Title:       CEO

                    

            

          

        

      

      

      

      Sandell
Asset Management Corp.

      

      
        
          
            
              	      
                      By:

                    	/s/
      Thomas E. Sandell	
                       

                    
	
                      Name:     Thomas
      E. Sandell

                    
	
                      Title:       Chief
      Executive Officer

                    

            

          

        

      

      

      

      Castlerigg
Master Investments Ltd.

      By:
Sandell Asset Management Corp.

      

      
        
          
            
              	      
                      By:

                    	/s/
      Thomas E. Sandell	
                       

                    
	
                      Name:    
      Thomas E. Sandell

                    
	
                      Title:       Chief
      Executive Officer

                    

            

          

        

      

      

      

      Castlerigg
International Limited

      By:
Sandell Asset Management Corp.

      

      
        
          
            
              	      
                      By:

                    	/s/
      Thomas E. Sandell	
                       

                    
	
                      Name:     Thomas
      E. Sandell

                    
	
                      Title:       Chief
      Executive Officer

                    

            

          

        

      

      

      

      Castlerigg
International Holdings Limited

      By:
Sandell Asset Management Corp.

      

      
        
          
            
              	      
                      By:

                    	/s/
      Thomas E. Sandell	
                       

                    
	
                      Name:     Thomas
      E. Sandell

                    
	
                      Title:       Chief
      Executive Officer

                    

            

          

        

      

      

      

      
        
          
          

        

        
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      EXHIBIT
A

       

       

      FORM
OF JOINDER AGREEMENT

       

       

      The
undersigned hereby agrees, effective as of the date hereof, to become a party to
that certain Amended and Restated Agreement, dated as of December 4, 2008, by
and among Fair Isaac Corporation, a Delaware corporation (the "Company"),
Sandell Asset Management Corp., a Cayman Islands exempted company ("SAMC"),
Castlerigg Master Investments Ltd., a British Virgin Islands company
("Castlerigg Master Investments"), Castlerigg International Limited, a British
Virgin Islands company ("Castlerigg International"); Castlerigg International
Holdings Limited, a British Virgin Islands company ("Castlerigg Holdings" and
collectively with SAMC, Castlerigg Master Investments, Castlerigg International
and Castlerigg Holdings, the "Sandell Group") (the "Agreement"). By executing
this joinder agreement, the undersigned hereby agrees to be, and shall be,
deemed a member of the "Sandell Group" for all purposes of the Agreement,
entitled to the rights and subject to the obligations thereunder with respect to
the voting securities of the Company acquired from the Sandell
Group.

       

       

      The
address and facsimile number to which notices may be sent to the undersigned is
as follows:

       

       

      Facsimile
No.:

       

       

      
         

        
          
            
              
                
                  
                    	
                            By:

                          	 
      
	 
      	 
      
	
                            Name:

                          	 
      
	 
      	 
      
	
                            Title:

                          	 
      
	 
      	 
      
	
                            Date:

                          	 
      

                  

                

              

            

          

        

         

        

         

      

       

      
 

      A-1Exhibit 10.1   Capital Lease Agreement

                           CAPITAL LEASE AGREEMENT
                           -----------------------

THIS CAPITAL LEASE AGREEMENT made and executed as of the 8th day of December,
2008, to become effective retroactively on October 1, 2008, between David D.
Selmon, a Texas resident, hereinafter called "Lessor," and Grand Horizons
Excursions, a subsidiary of Tropical PC, Inc. both corporations organized and
existing under the laws of the State of Nevada, hereinafter called "Lessee".

                            W I T N E S S E T H:

WHEREAS, the Lessor is the owner of a yacht, with Hull Identification Number.
CDRK2265L001 located at Hitchcock, Texas at the Harborwalk Marina, and being
described more fully in Exhibit A attached hereto and incorporated herein by
reference, hereinafter sometimes referred to as "Yacht;"

NOW, THEREFORE, in consideration of the Yacht and of the mutual covenants and
agreements herein expressed and of the payment by the Lessee of the rent
hereinafter reserved, Lessor hereby leases to Lessee the Yacht referred to
above and being more particularly described in Exhibit A attached hereto, on
the following terms and conditions:

1.  LEASE. Lessor hereby leases to Lessee, and Lessee hereby leases from
Lessor the Property. Lessee hereby acknowledges delivery and acceptance of
Lessee's rights in the Property under this Lease

2. TERM.  The term of this lease shall be for three (3) years commencing on
October 1, 2008, and ending at midnight on September 30, 2011.

3.   PAYMENTS.  During the term of this lease, Lessee shall pay to Lessor as
monthly payments the sum of SEVEN THOUSAND FIVE HUNDRED AND NO/100 ($7,500.00)
DOLLARS per month, payable on the first day of each month in advance. All
payments received by the Lessor after the fifth (5th) day of the month shall
be subject to a late payment charge equal to five percent (5%) of the monthly
rent payment.  In the event such rent is paid by check, same shall be accepted
subject to collection, and any extraneous written matter contained thereon
shall not in any way affect the terms of this lease or be binding upon the
Lessor.  Any additional charges as set forth herein, or in any other part of
this lease will be due and payable with the next month's rental.  Further,
the Lessor for entering into this agreement will received 25,000,000
restricted common shares of the subsidiary's parent, Tropical PC, Inc.

4.  TRANSFER OF OWNERSHIP.  If Lessee shall duly perform and observe all the
terms and conditions in this Lease including all payments specified herein,
on the Maturity Date the Lessee has the option purchase the Yacht for
TWENTY-FIVE THOUSAND ($25,000) DOLLARS.  If the option to transfer ownership
is exercised, the Lessor will assign and make over all his rights, title and
interest in and to the same to Lessee, without any further obligation by
Lessee.  Until all terms of this lease have been complied with, including
the payment of all sums payable, the Yacht shall remain the property of the
Lessor, and Lessee shall have no rights in title or claim against the Yacht.

5.  INSURANCE.  Lessee hereby covenants and agrees at all times during the
term hereof to obtain and maintain and keep in force for the mutual benefit of
Lessor and Lessee general public liability insurance against claims for
personal injury, death or property damage occurring in, on or about the Yacht.

The parties further covenant and agree that the Lessor and Lessee or anyone
claiming by, through or under them, shall be named as co-insureds as their
respective interests may appear in the above policies and that Lessee shall
deliver to the Lessor certificates of said insurance and of renewals thereof
from time to time during the term of this Lease.

Lessee shall keep, protect and save the Lessor harmless from any loss, cost
or expenses of any sort or nature, and from any liability to any person
natural or artificial, on account of any damage to person or property arising
out of any failure to comply with and perform all of the requirements and
provisions set forth in this paragraph.

6.  TAXES.  Lessee shall also pay as additional rental during the term of
this lease all taxes, including, but not limited to, state, county and city
real and personal property taxes (or any amount substituted for such taxes,
whether imposed upon Lessor as a rental tax or otherwise) and general and
special assessments levied against the Yacht or the contents thereof.  Lessee
shall when due make all tax returns on the Yacht in Lessor's name and shall
promptly after receipt of any tax bill or other notice of tax due on the
Yacht furnish Lessor with a copy of such bill or notice.  Lessee shall pay
all of such taxes no later than ten (10) calendar days before the due date
thereof, and Lessee shall promptly furnish Lessor with receipts evidencing
such payments.  If by law any tax, assessment or other public charge may at
the option of the taxpayer be paid in installments, Lessee shall have the
right to exercise such option, and in such event Lessee shall pay such
installments as become due during the term of this Lease, and Lessor shall
pay the remaining installments.  The additional rent provided for in this
paragraph shall be prorated for the first and last years of the term of
this lease.

7.  REPAIRS.  The Lessee shall, at its own expense, make all necessary
repairs and replacements to the Yacht.  Such repairs and replacements,
interior and exterior, ordinary as well as extraordinary, and structural
as well as nonstructural, shall be made promptly as and when necessary.
All repairs and replacements shall be in quality and class of at least equal
to the original work.  On default of the Lessee in making such repairs or
replacements, Lessor may, but shall not be required to, make such repairs
and replacements for the Lessee's account, and the expense thereof shall
constitute and be collectible as additional rent.

8.   DESTRUCTION OF OR DAMAGE TO YACHT.

(a)  If the Yacht is totally destroyed (or so substantially damaged as to be
unusable) by storm, fire, earthquake, or other casualty, this lease shall
terminate as of the date of such destruction or damage, and rental shall be
accounted for as between Lessor and Lessee as of that date.

(b)  If the Yacht is damaged, but not rendered wholly unleaseable by such
casualty, the Lessee, at its sole expense, shall promptly restore the leased
Yacht as nearly as possible to its condition prior to such damage or
destruction.  All insurance proceeds received by the Lessor as a result of
such casualty, less the cost of any such recovery, shall be held in trust and
applied by the Lessor to the payment of such restoration costs, as such
restoration progresses.  If the proceeds of insurance are not sufficient to
pay the full cost of repair or restoration, the Lessee shall pay the
deficiency.  If the insurance proceeds exceed the cost of repair or
restoration, the excess shall be paid to the Lessee.  There shall be no
abatement of rent during any period of repair or restoration.

9.  LESSOR'S REMEDIES UPON LESSEE'S DEFAULT. If Lessee shall default in the
payment of any rental hereunder when due; or if Lessee shall fail to pay ten
(10) days before the due date therefor all taxes, assessments, levies and
other charges hereinabove referred to as additional rental; or shall allow
any liens to be placed against the Yacht; and if any such default shall
remain uncured for more than ten (10) calendar days after receipt of written
notice from Lessor of such default; or if Lessee shall fail to cure any other
default of Lessee under the terms of this lease within thirty (30) calendar
days after Lessor gives Lessee written notice of such default; or if Lessee
is adjudicated bankrupt or a permanent receiver is appointed for Lessee's
property; or if, whether voluntarily or involuntarily, Lessee takes advantage
of any debtor relief proceedings under any present or future law whereby any
rental hereunder is, or is proposed to be, reduced or payments thereof
deferred; or if Lessee makes an assignment for the benefit of creditors; or
if Lessee's effects should be levied upon or attached under process against
Lessee, and not satisfied or dissolved or stayed by bond within ten (10)
days after written notice from Lessor to Lessee to obtain satisfaction
thereof; THEN AND IN ANY SUCH EVENT, Lessor, at Lessor's option, shall have
the right at once either:

(a)  To terminate this lease and to resume possession of the Yacht wholly
discharged from this lease.  Such election shall be made by written notice
to the Lessee at any time on or before the doing of any act or the
commencement of any proceeding to recover possession of the Yacht by reason
of the default or breach then existing and shall be final.   If the Lessor
shall elect to terminate this lease as aforesaid, thereupon all rights and
obligations whatsoever of the Lessee and of its successors and assigns under
this lease, except for obligations accrued prior to the date of termination,
shall cease and terminate, and Lessee shall immediately surrender and
deliver up to the Lessor the entire Yacht, together with all improvements
and additions, and upon any default by the Lessee in so doing the Lessor
shall have the right, forthwith, to re-enter the Yacht either by a summary
proceedings or otherwise, and to expel all persons and remove all property
therefrom, and to repossess the Yacht and to have and to enjoy the same
again, together with all improvements and additions, as fully and completely
as if this lease had never been made.

(b) To eject Lessee but to hold Lessee responsible for the unexpired term,
and in connection therewith, Lessor shall have the right to offer the Yacht
or any part thereof for rent for the whole or any part of the unexpired term,
with or without advertisement, and either after public notice or by private
negotiations, all for the account of the Lessee, and shall have the right to
charge to and collect from Lessee any difference between the sum or sums
realized from such subletting for Lessee's account and the rental specified
in this lease to be paid by Lessee.  It is further mutually agreed that any
such subletting by or on behalf of the Lessor, as hereinabove set forth,
will not in any sense be a breach of the contract on the part of the Lessor
but that any such subletting will be as agent for Lessee and for Lessee's
account in order to minimize Lessor's damages.

10.  No Warranties by Lessor.  Lessee acknowledges that Lessor is not the
manufacturer of the Yacht, nor manufacturer's agent, and the Lessor MAKES NO
WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE FITNESS,
DESIGN OR CONDITION, THE MERCHANTABILITY OF THE PROPERTY OR ITS FITNESS FOR ANY
PARTICULAR PURPOSE, THE QUALITY OR CAPACITY OF THE MATERIALS IN THE PROPERTY OR
WORKMANSHIP IN THE PROPERTY.  No defect or unfitness of the Yacht shall relieve
Lessee of the obligation to make payments for the benefit of Lessor.  Lessee
shall, at its own cost and expense, (a) pay all charges and expenses in
connection with the use, operation and maintenance of the Yacht; (b) comply
with all laws, ordinances, regulations, requirements and rules with respect to
the use, maintenance and operation of the Yacht; (c) make all repairs and
replacements required to be made to maintain the Yacht in good condition,
reasonable wear and tear expected.

11.  ATTORNEY'S FEES. If any rent owing under this lease is collected by or
through an attorney at law, Lessee agrees to pay fifteen percent (15%) thereof
as attorney's fees.

12.  ASSIGNMENT AND SUBLETTING.  Lessee will not assign, transfer or set over
this lease or any interest therein, nor sublease or underlet said Yacht, or any
part thereof, without first obtaining the written consent of Lessor, which
consent shall not be unreasonably withheld.  In case of any assignment of this
lease or subletting of the Yacht, Lessee shall continue liable under the
covenants of this lease on its part to be performed.

13.  COMPLIANCE WITH REGULATIONS.  Lessee agrees to obtain and keep in effect
all licenses and permits and to comply with all applicable laws or regulations
of any governmental or municipal authority relative to sanitation, nuisances or
health requirements at Lessee's own cost and expense, and Lessee will indemnify
and save Lessor harmless against such laws or regulations.

14.  LESSEE'S COVENANTS.  The Lessee covenants and agrees that during the term
of this lease and for such further time as the Lessee, or any person claiming
under Lessee, shall hold the Yacht or any part thereof:

(a)  To pay the reserved rent on the days and in the manner aforesaid.

(b)  Not to encumber the estate of the Lessor in the Yacht at any time during
the said term to become subject to any lien, charge, or encumbrance whatsoever,
and to indemnify and keep indemnified the Lessor against all such liens,
charges and encumbrances; it being expressly agreed that the Lessee shall have
no authority, expressed or implied to create any lien, charge or encumbrance,
herein upon the estate of the Lessor in the Yacht .

(c)  To indemnify the Lessor against all costs and expenses, including counsel
fees, lawfully and reasonably incurred in or about the Yacht, or in the defense
of any action or proceeding, or in discharging the Yacht from any charge, lien,
or encumbrance or in obtaining possession after default of the Lessee or the
termination of this demise.

15.  INDEMNITY.  Lessee shall indemnify Lessor and save him harmless from and
against any and all claims, actions, damages, liability and expense (including
reasonable attorney's fees) in connection with loss of life, personal injury
and/or damage to property arising from or use by Lessee of the Yacht or any
part thereof or any other part of Lessor's property, or occasioned wholly or in
part by any willful or negligent act or omission of Lessee, its officers,
agents, contractors, or employees.

16.  EXCULPATION.  Anything herein to the contrary notwithstanding, Lessee
agrees that it shall look solely to the interest of the Lessor in the Yacht for
the collection of any judgment (or other judicial process) requiring the
payment of money by Lessor for any default or breach by Lessor of any of its
obligations under this lease; subject, however, to the prior rights of the
holder of any Loan covering the Yacht or of Lessor's interest therein.  No
other assets of Lessor shall be subject to levy, execution or other judicial
process for the satisfaction of any claim or judgment of Lessee.  This
provision shall not be deemed, construed, or interpreted to be or constitute an
agreement, express or implied, between Lessor and Lessee that the Lessor's
interest hereunder or in the Yacht shall be subject to the imposition of any
legal or equitable lien.

17.  INSPECTION OF YACHT.  Lessor and his representatives may enter the Yacht
at any reasonable time, for the purpose of:  (a) inspecting the Yacht; (b)
performing any work which Lessor elects to undertake hereunder or made
necessary by reason of Lessee's default under the terms of this lease; or (c)
exhibiting the Yacht for mortgage financing.

18.  SUBORDINATION.  This Lease is subordinate to an underlying lien from a
Bank to secure debt that is currently placed upon the Yacht.  If Lessor sells,
transfers, or conveys Lessor's interest in the Yacht, or if the same is
foreclosed judicially or nonjudicially, or otherwise acquired, by the Bank,
upon the request and at the sole election of Lessor's successor, Lessee shall
accept to said successor to this lease.  Lessee also agrees this lease shall be
deemed following the lien to such Bank loan.  It is the intent of the parties
that the foregoing provisions be self-operative.  The Lessee therefore
acknowledges that this lease is subordinate to the underlying Bank loan on the
Yacht.

19.  ENTIRE AGREEMENT  This lease contains the entire agreement of the parties
and no representations, inducements, promises or agreements, oral or otherwise,
between the parties not embodied herein shall be of any force and effect.  No
failure of Lessor to exercise any power given hereunder, or to insist upon
strict compliance by Lessee of any obligation hereunder, and no custom or
practice of the parties at variance with the terms hereof, shall constitute a
waiver of Lessor's right to demand exact compliance with the terms hereof.

20.  BINDING ON SUCCESSORS AND ASSIGNS.  The terms, conditions and covenants of
this lease shall be binding upon and shall inure to the benefit of each of the
parties hereto, their heirs, personal representatives, successors, or assigns.

21.  INVALIDITY OF PROVISIONS.  If any term or provision of this lease or the
application thereof to any party or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this lease, or the application of
such term or provision to persons whose circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby.

22.  CONSTRUCTION.  This agreement is being delivered and is intended to be
performed in the State of Nevada and shall be construed and enforced in
accordance with the laws of the State of Nevada.

23.  COUNTERPARTS.  This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this instrument and
affixed their seals the day and year first above written.

David D. Selmon, Lessor

/s/ David D. Selmon
-------------------
David D. Selmon

Grand Horizons Excursions, Lessee

/s/ David D. Selmon
-------------------------------
By:  David D. Selmon, President

<PAGE>

EXHIBIT A

DESCRIPTION

Description of yacht registered with United States Coast Guard:

Named:                          "Start Me Up"
Builder                         Carver
Hull Identification Number.     CDRK2265L001
Model                           2001 Voyager 530

Located in Hitchcock, Texas at the Harborwalk Marina

The yacht suitable for excursion activities

<PAGE>

                                  GUARANTY
                                  --------

FOR VALUE RECEIVED, and in consideration of and as an inducement to the
execution of the attached Lease Agreement, dated as of December 8, 2008, by and
between David D. Selmon, as Lessor, and Grand Horizons Excursions, as Lessee,
the undersigned (hereinafter referred to as "Guarantor") does hereby absolutely
guarantee to Lessor the full and complete payment of the rent and other charges
to Lessor to be paid by Lessee under said Lease Agreement and the full and
complete performance by said Lessee of all of the other terms, conditions,
covenants, and agreements of said Lease Agreement.

Guarantor agrees that (a) Lessor may, in his discretion, extend the time or
manner of payment of all or any part of the rent under said Lease Agreement
without notice to or consent of the Guarantor, and (b) that Lessor may exercise
or forebear from exercising any rights against the Lessee under said Lease
Agreement or otherwise act or forebear from acting, and may settle or
compromise any rent which may become due under said Lease Agreement without
notice to or consent of Guarantor or grant or make any accommodation,
alteration, modification, indulgence to Lessee, all without releasing Guarantor
from its obligations hereunder or limiting or impairing its  liability.

The undersigned further agrees that its liability under this Guaranty shall be
primary, and that in any right of action which shall accrue to Lessor under
said Lease Agreement, the Lessor may, at his option, proceed against the
undersigned without having commenced any action, or having obtained any
judgment and without first attempting to collect or proceed against Lessee.

This Guaranty shall be binding upon the respective successors and assigns of
Guarantor and shall inure to the benefit of the successor, personal
representatives and assigns of Lessor.

The obligations and liability of Guarantor shall not be affected, impaired or
limited by (a) the release or discharge of the Lessee in any creditors'
receivership, bankruptcy or other proceedings; (b) the impairment, limitation
or modification of the liability of the Lessee or its estate in bankruptcy, or
of any remedy for the enforcement of the Lessee's liability under the lease,
resulting from the operation of any present or future provision of the
Bankruptcy Code or other statute or from the decision in any court; (c) the
rejection or disaffirmance of the lease in any such proceedings; or (d) the
cessation from any cause whatsoever of the liability of the Lessee.

IN WITNESS WHEREOF, the Guarantor has hereunto caused this Guaranty to be
executed as of the 8th day of December, 2008.

Grand Horizons Excursions, Lessee

/s/ David D. Selmon
-------------------------------
By:  David D. Selmon, President

<PAGE>

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