Document:

EX-10.12

Exhibit 10.12
 

THIRD AMENDMENT TO LOAN AGREEMENT

     THIS THIRD AMENDMENT TO LOAN AGREEMENT (the “Amendment”) is made and entered into this March
12, 2009, by and between SADDLEBROOK RESORTS, INC., whose address is 5700 Saddlebrook Way, Wesley
Chapel, Florida 33543 (the “Borrower”) and SUNTRUST BANK, a Georgia banking corporation, having
offices at 401 East Jackson Street, Commercial Banking – 10th Floor, Tampa, Florida 33602
(“Lender”).

BACKGROUND

     A. Borrower has applied to Lender for a modification of the Revolving Loan (as hereinafter
defined), the Term Loan (as hereinafter defined), and the Agreement (as hereinafter defined) to
refinance existing debt and support Borrower’s working capital and other general corporate needs.

     B. Lender has agreed to modify the Revolving Loan, the Term Loan and the Agreement, and
Borrower has agreed to accept such modifications to the Revolving Loan, Term Loan and the Agreement
on the terms and conditions hereinafter set forth and as provided in the other Loan Documents (as
hereinafter defined), including the Commitment Letter (as hereinafter defined).

     C. Simultaneously with the execution of this Amendment, Borrower has executed and delivered to
Lender the Notes (as hereinafter defined), which are secured by the Mortgage (as hereinafter
defined) that encumbers the Real Property (as hereinafter defined) and constitutes a first lien
thereon, and by other Loan Documents.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing, the making of the Loan, and the mutual
covenants, agreements, conditions, undertakings and warranties of the parties herein and in the
other Loan Documents, it is covenanted and agreed as follows:

     1. Definitions. As used in this Amendment, the following terms shall have the
meanings indicated. To the extent that the following meanings differ from any meanings ascribed
under the Original Loan Agreement (as hereinafter defined), the following meanings shall control.
Capitalized terms not defined herein shall have the meanings ascribed to them in the Original Loan
Agreement:

     “Agreement”: Collectively, that certain Loan Agreement dated November 1, 2004, between
Borrower and Lender, together with (a) that certain Addendum to Loan Agreement by and between
SunTrust Bank, as Lender and Saddlebrook Resorts, Inc., as Borrower, dated as of November 1, 2004
(the “Addendum”), (b) that certain First Amendment to Loan Agreement dated January 31, 2007, (c)
that certain Second Amendment to Loan Agreement dated as of November 6, 2008 (collectively, the
“Original Loan Agreement”), and (d) this Amendment.

     “Commitment Letter”: The letter from Lender to Borrower dated February 24, 2009, outlining
the general terms of the Loan, the provisions of which letter are incorporated herein by reference
to the extent not inconsistent with this Agreement or the

 

 

other Loan Documents. Anything to the contrary contained herein notwithstanding, however, the
Commitment Letter shall not survive the closing of the Loan.

     “Guarantor”: Saddlebrook International Tennis, Inc., a Florida corporation, pursuant to that
certain Unconditional Guaranty of even date herewith.

     “Debt Service Coverage Ratio”: The debt service coverage for each fiscal year of Borrower, or
calendar year, as applicable, shall be equal to the quotient obtained via the formula whose
numerator is the total of Borrower’s net income plus Interest Expense (as hereinafter defined),
depreciation expense, amortization expense each determined for such fiscal year for Borrower and
Guarantor combined, minus (a) any unrealized gains or losses from liquid investments, (b)
distributions to shareholders (not including distributions made to shareholders to pay the pro rata
share of Federal Income Tax associated with their ownership in Saddlebrook Resorts, Inc. and
Saddlebrook International Tennis, Inc. during the prior fiscal year), (c) tax credits, (d)
increases in related entities receivables or notes (not including the increase in receivables for
the purpose of paying the pro-rata share of Federal Income Tax associated with the shareholder’s
ownership in Borrower and/or Guarantor during such fiscal year); and whose denominator is the sum
of (x) all capital lease payments made by Borrower and Guarantor during such fiscal year, (y) all
principal payments paid by Borrower and Guarantor on the Funded Debt (as hereinafter defined), plus
(z) Interest Expense, each determined for such fiscal year. For purposes of calculating the Debt
Service Coverage Ratio, “Interest Expense” shall mean interest expense (including without
limitation the interest component of any payments in respect of capital leases capitalized or
expensed during such period) determined for such fiscal year. For purposes of calculating the Debt
Service Coverage Ratio, “Funded Debt” shall mean (1) all of Borrower’s and Guarantor’s obligations
for money, (2) all of Borrower’s and Guarantor’s obligations evidenced by a bond, indenture, note,
letter of credit or similar instrument, (3) all of Borrower’s and Guarantor’s obligations under
capital leases, and (3) all other obligations of Borrower and Guarantor upon which interest charges
are customarily paid.

     “Loan”: The Revolving Loan evidenced by the Revolving Note and the Term Loan evidenced by the
Term Note shall be collectively referred to herein as the “Loan”.

     “Mortgage”: The Second Amended and Restated Mortgage, Security Agreement and Fixture Filing
dated as of November 1, 2004, as modified by that certain Third Amended and Restated Mortgage,
Security Agreement and Fixture Filing dated as of January 31, 2007, and as further modified by that
certain Fourth Amended and Restated Mortgage, Security Agreement and Fixture Filing dated as of
November 6, 2008, and as further modified by that certain Notice of Future Advance and Fifth
Amended and Restated Mortgage, Security Agreement and Fixture Filing of even date herewith,
encumbering the Real Property and other collateral, executed and delivered by Borrower to Lender to
secure the Notes.

     “Notes”: Collectively, the Promissory Note dated November 1, 2004, from Borrower in favor of
Lender in the amount of $12,000,000.00, as modified by that certain Future Advance Promissory Note,
of even date herewith, from Borrower in favor of Lender in the amount of $2,500,000.00, and as
further modified by that certain Consolidated, Amended and Restated Promissory Note, of even date
herewith, from

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Borrower in favor of Lender in the amount of $10,600,000.00 (the “Term Note”), and the
Revolving Line of Credit Promissory Note dated November 1, 2004, from Borrower in favor of Lender
in the amount of $5,000,000.00, as modified by that certain Amended and Restated Revolving Line of
Credit Promissory Note dated January 31, 2007, from Borrower in favor of Lender in the amount of
$5,000,000.00, as modified by those certain letter agreements dated February 20, 2008, February 28,
2008, May 19, 2008, and August 12, 2008, and as further modified by that certain Second Amended and
Restated Revolving Line of Credit Promissory Note dated November 6, 2008, and as further modified
by that certain Third Amended and Restated Promissory Note of even date herewith, from Borrower in
favor of Lender in the amount of $2,500,000.00 (the “Revolving Note”).

     “Title Endorsement Binder”: Commitment No. 200900912 (dated February 20, 2009, at 11:00
p.m.), as endorsed, issued to Lender by the Title Company, whereby the Title Company sets forth its
commitment to issue an endorsement to its Loan Policy No. 10 1034 107 00000012.

     2. Representations and Warranties. Anything to the contrary contained in the
Agreement notwithstanding, except as hereinafter set forth, each of the representations and
warranties set forth in Section 2 of the Original Loan Agreement continues to be true as of the
date hereof, will be true on the date of each advance under the Loans, shall survive the making of
the Agreement and the issuance of the Revolving Note and the Term Note, and shall be deemed to
remain so represented and warranted pending contrary written notice to Lender. The acceptance of
any advance under the Loans by Borrower shall be deemed to be a reaffirmation of each and every one
of said representations and warranties. Borrower and Lender hereby acknowledge that changes to the
boundaries of the Property have resulted from that certain condemnation action in the Circuit Court
of the Sixth Judicial Circuit in and for Pasco County, Florida under Case No. 1-2008-CA-10429-ES,
to which Borrower has been a party.

     3. Title Endorsement Binder. Anything to the contrary contained in the Agreement
notwithstanding, Borrower will furnish to Lender, at Borrower’s expense, forthwith and prior to the
disbursement of any Loan funds, the Title Endorsement Binder issued by the Title Company. Said
Binder shall insure that upon closing of the modification to the Revolving Loan and the Term Loan,
Borrower will be vested with a good, valid, and insurable fee simple title, free and clear of all
exceptions whatsoever, except for the Mortgage, current taxes not yet due and payable, and
covenants, restrictions and easements of record acceptable to Lender, and shall insure Lender, or
its nominee or assignee, that the Mortgage is a good and valid first lien on the Real Property,
subject only to the exceptions noted in the Agreement.

     4. Depository Account to be Maintained by Dempsey and Daughters, Inc. Anything to the
contrary contained in the Agreement notwithstanding, Dempsey and Daughters, Inc., a Florida
corporation, shall open and maintain a commercial depository account with Lender and shall maintain
during the term of the Loan a minimum balance of not less than $2,000,000.00. Said account must be
in the form of a non-interest bearing FDIC insured checking account, SunTrust Bank commercial
savings account or money market fund. Closure of such account prior to the date which is two (2)
years

3

 

after the date hereof, or such entity’s failure to maintain a minimum balance of not less than
$2,000,000.00 during such period, shall constitute an Event of Default under the Agreement and
shall trigger a repricing of the Loan of the loan spread to an applicable market spread at that
time, as determined by Lender in Lender’s sole discretion.

     5. Debt Service Coverage Ratio. Anything to the contrary contained in the Agreement
notwithstanding, a minimum Debt Service Coverage Ratio of not less than 1.40:1.00 shall be
maintained during the term of the Loan. Debt Service Coverage Ratio shall be calculated annually
during the Loan term. Anything to the contrary contained herein or in Section 4 of the Original
Loan Agreement notwithstanding, Borrower’s failure to maintain the minimum Debt Service Coverage
Ratio required hereunder shall constitute an Event of Default under the Agreement and under the
Mortgage and shall entitle Lender to the remedies set forth in Section 4 of the Original Loan
Agreement; provided, however, that to the extent that there is no other pending Event of Default,
Borrower shall have the right to cure its failure to maintain the minimum Debt Service Coverage
Ratio within thirty (30) days by proposing and implementing such additional collateral, guarantees,
and further assurances as may be reasonably acceptable to Lender.

     6. Annual Federal Income Tax Returns. Anything to the contrary contained in the
Agreement notwithstanding, during the Loan term, Lender shall be furnished with complete copies of
Borrower’s and Guarantor’s annual United States income tax returns (including all schedules) within
thirty (30) days after filing with the Internal Revenue Service, commencing with the December 31,
2008, fiscal year end United States income tax returns.

     7. Annual Financial Statements. Anything to the contrary contained in the Agreement
notwithstanding, within one hundred twenty (120) days after each fiscal year end commencing with
the fiscal year ending December 31, 2009, Lender shall be furnished with annual audited financial
statements for Borrower, prepared by a certified public accountant acceptable to Lender in
accordance with generally accepted accounting principles, certified as true and correct by an
officer by Borrower, and including, at a minimum, a balance sheet, income statement, statement of
retained earnings, statement of cash flows, footnotes, appropriate supporting schedules, all in
reasonable detail, and such other information as may be requested by Lender. Anything to the
contrary contained in the Agreement notwithstanding, within one hundred twenty (120) days after
each fiscal year end commencing with the fiscal year ending December 31, 2009, Lender shall be
furnished with annual reviewed financial statements for Guarantor, prepared by a certified public
accountant acceptable to Lender in accordance with generally accepted accounting principles,
certified as true and correct by an officer by Borrower and Guarantor, as applicable, and
including, at a minimum, a balance sheet, income statement, statement of retained earnings,
statement of cash flows, footnotes, appropriate supporting schedules, all in reasonable detail, and
such other information as may be requested by Lender.

     Anything to the contrary contained in the Agreement notwithstanding, within one hundred twenty
(120) days after each fiscal year end commencing with the fiscal year

4

 

ending December 31, 2009, Lender shall be furnished with annual consolidated financial
statements for Borrower and Guarantor, prepared by Borrower’s Chief Financial Officer in accordance
with generally accepted accounting principles, certified as true and correct by such Chief
Financial Officer and including, at a minimum, a balance sheet, income statement, statement of
retained earnings, statement of cash flows, footnotes, appropriate supporting schedules, all in
reasonable detail, and such other information as may be requested by Lender.

     8. Quarterly Financial Statements. Anything to the contrary contained in the
Agreement notwithstanding, within thirty (30) days after the close of each fiscal quarter of
Borrower and Guarantor during the Loan term, Lender shall be furnished with unaudited, internally
prepared quarterly financial statements of Borrower and Guarantor, certified as true and correct by
an authorized officer of Borrower and Guarantor, as applicable.

     9. Additional Revolving Loan Commitment Fee. Borrower shall pay Lender a commitment
fee in the amount of 25bps on March 12, 2010, which commitment fee shall be applicable to the
thirteenth through twenty-fourth month of the term of the Revolving Loan.

     10. Cross-Collateralization and Cross-Default. Anything to the contrary contained
herein notwithstanding, Borrower hereby agrees that any default under the Agreement and the other
Loan Documents shall constitute a default under each and every other loan or commitment issued by
Borrower, Guarantor, or any Mortgagor to Lender and that a default under any other loan or
commitment issued by Borrower, Guarantor, or any Mortgagor to Lender shall constitute a default
hereunder. The Real Property and other Collateral for the Loan shall also serve as security and
collateral for all other indebtedness of Borrower to Lender and the collateral for any other
indebtedness of Borrower to Lender shall serve as security and collateral for the Loan. Borrower
agrees to execute any documentation required by Lender to evidence such cross-collateralization and
cross-default.

     11. Effect on Existing Documents. Where the terms of this Amendment and the Original
Loan Agreement and/or the Addendum conflict, the terms of this Amendment shall control. Except as
otherwise provided herein, all other terms, covenants, and conditions of the Original Loan
Agreement and the Addendum shall be unmodified and in full force and effect.

     IN WITNESS WHEREOF, this Amendment has been duly executed and delivered of the day and year
first above written.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURES ON FOLLOWING PAGE]

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	 	LENDER:

SUNTRUST BANK,

a Georgia banking corporation

 	 
	 	By:  	/s/ Michael K. Dehney
 	 
	 	 	Michael K. Dehney 	 
	 	 	Its Vice President 	 
	 
	 	BORROWER:

SADDLEBROOK RESORTS, INC.,

a Florida corporation

 	 
	 	By:  	/s/ Thomas L. Dempsey
 	 
	 	 	Thomas L. Dempsey 	 
	 	 	Its Chief Executive Officer 	 
	 
	 	GUARANTOR:

SADDLEBROOK INTERNATIONAL TENNIS, INC.,

A Florida corporation

 	 
	 	By:  	/s/ Thomas L. Dempsey
 	 
	 	 	Thomas L. Dempsey 	 
	 	 	Its Chief Executive Officer 	 
	 

6EX-10.13

Exhibit 10.13

ALL STATE OF FLORIDA DOCUMENTARY STAMP TAXES WITH RESPECT TO THE INDEBTEDNESS EVIDENCED HEREBY HAVE
BEEN PAID IN CONNECTION WITH THE FUTURE ADVANCE NOTE (AS DEFINED HEREIN) AND THAT CERTAIN NOTICE OF
FUTURE ADVANCE AND FIFTH AMENDED AND RESTATED MORTGAGE AND SECURITY AGREEMENT OF EVEN DATE HEREWITH
FROM BORROWER IN FAVOR OF BANK. NO ADDITIONAL DOCUMENTARY STAMP TAXES ARE DUE IN CONNECTION WITH
THIS NOTE.

CONSOLIDATED, AMENDED AND RESTATED PROMISSORY NOTE

			
	U.S. $10,600,000.00
	 	Tampa, Florida

March 12, 2009

     WHEREAS, the undersigned Borrower currently has two (2) existing term notes with SUNTRUST
BANK, a Georgia banking corporation (hereinafter called “Bank”, which term shall include all
subsequent holders of this Note by assignment or otherwise), as evidenced by (i) that certain
Promissory Note (the “Original Note”) dated November 1, 2004, payable to the order of Bank, in the
original principal amount of $12,000,000.00; and (ii) that certain Future Advance Promissory Note
of even date herewith, in the original amount of $2,500,000.00 (the “Future Advance Note”). The
Original Note and the Future Advance Note shall be collectively referred to herein as the
“Consolidated Notes”;

     AND WHEREAS, the current outstanding principal balance under the Original Note is
$8,100,000.00;

     AND WHEREAS, Borrower and Bank wish to consolidate the Consolidated Notes to form one
consolidated loan facility in the amount of $10,600,000.00 (the “Consolidated Loan”) to be repaid
pursuant to the terms of this Consolidated, Amended, and Restated Promissory Note (this “Note”);

     NOW, THEREFORE, the Consolidated Notes are hereby amended and replaced in their entireties by
the this terms of this Note. Effective as of the date hereof (the “Effective Date”), the
Consolidated Notes are hereby consolidated to form the Consolidated Loan in the principal amount of
Ten Million Six Hundred Thousand and No/100ths Dollars ($10,600,000.00) to be repaid pursuant to
the terms of this Note.

     Borrower promises to pay to Bank, or order, the sum of TEN MILLION SIX HUNDRED THOUSAND AND
100/100 DOLLARS ($10,600,000.00), together with interest from the date hereof at the respective
rates of interest hereinafter provided, all in the manner further provided for herein.

     The principal outstanding under this Note shall bear interest at the Interest Rate (as
hereinafter defined), which Interest Rate shall be adjusted on each Interest Rate Determination
Date (as hereinafter defined). The term “Advances” shall mean any portion of the outstanding
principal balance of this Note. The term “Interest Rate” means two and one-half percent (2.50%)
per annum above One Month Match-Funded LIBOR (as hereinafter defined). The term “One Month

 

Match-Funded LIBOR Rate” means that rate per annum which is the quotient of:

(i) the rate per annum equal to the offered rate for deposits in U.S. dollars of amounts
comparable to the principal amount of the applicable Advance offered for a term comparable
to the applicable Interest Period, which rate appears on that page of Bloomberg reporting
service, or such similar service as determined by Bank, that displays British Bankers’
Association interest settlement rates for deposits in U.S. Dollars, as of 11:00 A.M.
(London, England time) two (2) Business Days prior to the first day of such Interest Period;
provided, that if no such offered rate appears on such page, the rate used for such
Interest Period will be the per annum rate of interest determined by Bank to be the rate at
which U.S. dollar deposits for the relevant Interest Period in an amount comparable to the
amount of the applicable Advance, are offered to Bank in the London Inter-Bank Market as of
11:00 A.M. (London, England time), on the day which is two (2) Business Days prior to the
first day of such Interest Period, divided by

(ii) a percentage equal to 1.00 minus the maximum rate of all reserve requirements
(expressed as a decimal) as specified in Regulation D of the Board of Governors of the
Federal Reserve System (including, without limitation, any marginal, emergency,
supplemental, special or other reserves) that would be applicable on the day which is two
(2) Business Days prior to the first day of the Interest Period during which the One Month
Match-Funded LIBOR Rate is to be applicable to Eurocurrency liabilities in an amount
substantially equal to the principal amount of the applicable Advance and with a maturity
date as of the last day of the applicable Interest Period, all as reasonably determined by
Bank, such sum to be rounded up to the nearest whole multiple of 1/100 of 1%.

     If Bank determines in its sole discretion at any time (the “Determination Date”) that it can
no longer make, fund or maintain LIBOR based loans for any reason, including without limitation
illegality, or the LIBOR Rate cannot be ascertained or does not accurately reflect Bank’s cost of
funds, or Bank would be subject to Additional Costs (as hereinafter defined) that cannot be
recovered from Borrower, then Bank will notify Borrower and thereafter will have no obligation to
make, fund or maintain LIBOR based loans. Upon such Determination Date, the Interest Rate will be
converted to a variable rate based upon the Prime Rate (as hereinafter defined). Thereafter, the
Interest Rate shall adjust simultaneously with any fluctuation in the Prime Rate. “Prime Rate”
shall mean the publicly announced prime lending rate of the Bank from time to time in effect, which
rate may not be the lowest or best lending rate made available by the Bank.

     Anything to the contrary contained herein notwithstanding, Borrower may elect to enter into an
interest swap contract with SunTrust Robinson Humphrey Capital Markets to convert the above
variable rate to a fixed rate. The fixed rate available through the swap is a market-derived rate
and changes with market conditions until it is locked-in. Any such rate swap contract shall be
cross-collateralized and cross-defaulted with the loan documents evidencing this Consolidated Loan.
Hedging options may be chosen with various tenors not to exceed the 5-year maturity and 10 year
amortization of the Consolidation Loan.

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     The term “Business Day” as hereinabove used shall mean a day on which the foreign exchange
markets in London, England are open for business. The term “Interest Rate Determination Date” as
hereinabove shall mean and refer to the date of this Note and the twelfth day of each calendar
month thereafter, provided, however, that if the twelfth day of each calendar month occurs on a day
which is not a Business Day, then the Interest Rate Determination Date shall be the first Business
Day thereafter. The term “Interest Period” as hereinabove used means the period commencing on each
Interest Rate Determination Date and ending the day before the next Interest Rate Determination
Date.

     Interest hereunder shall be computed on the basis of a three hundred sixty (360) day year,
calculated for the actual number of days elapsed, provided, however, that the Interest Rate charged
hereunder shall never exceed the maximum rate allowed, from time to time, by applicable law.

     Monthly payments of principal in the amount of Eighty-Eight Thousand Three Hundred
Thirty-Three and 33/100 Dollars ($88,333.33), plus accrued interest at the applicable Interest Rate
pursuant to the foregoing provisions of this Note shall be due and payable beginning on April 12,
2009, and continuing on the twelfth (12th) day of each month thereafter until the Maturity Date (as
defined below).

     The “Maturity Date” of this Note shall be March 12, 2014. Notwithstanding any contrary
provision of this Note, all amounts then outstanding under this Note, if not sooner paid, shall be
due and payable in full on the Maturity Date.

     In the event that any applicable law or regulation or the interpretation or administration
thereof by any governmental authority charged with the interpretation or administration thereof
(whether or not having the force of law) (i) shall change the basis of taxation of payments to the
Bank or any amounts payable by Borrower hereunder (other than taxes imposed on the overall net
income of the Bank) or (ii) shall impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account of, or credit extended by
the Bank, or (iii) shall impose any other condition with respect to this Note, and the result of
the foregoing is to increase the cost to the Bank of making or maintaining this Note or to reduce
any amount receivable by Bank hereunder, and the Bank determines that such increased costs or
reduction in amount receivable was attributable to the One Month Match-Funded LIBOR Rate used to
establish the One Month Match-Funded LIBOR Rate hereunder, then Borrower shall from time to time,
upon demand by the Bank, pay to the Bank additional amounts sufficient to compensate the Bank for
such increased costs (the “Additional Costs”). A detailed statement as to the amount of the
Additional Costs, prepared in good faith and submitted to Borrower by the Bank, shall be conclusive
and binding in the absence of manifest error.

     A payment due hereunder shall be deemed late if it is not received by the Bank on or before
ten (10) days after the due date of such payment, and each late payment shall automatically incur a
late charge, payable immediately, equal to five percent (5%) of such payment. This late charge
provision shall not limit the operation of any other provision of this Note regarding payments that
are not made when due hereunder. Further, notwithstanding any other rate of interest provided for
herein, the Interest Rate applicable to any payment or payments of principal or interest, or any
part thereof, not received by the Bank within ten (10)

3

 

days after the due date thereof shall thereafter be the maximum rate allowed, from time to
time, by applicable law (the “Default Rate”).

     Further still, Borrower shall be in default of this Note in the event that any payment of
principal or interest, or any part thereof, is not received by the Bank within ten (10) days after
the due date of such payment, or upon the occurrence of any other default hereunder or under the
terms of any mortgage or other loan document securing or made at any time in connection with this
Note or with any loan cross-defaulted with this Note. In the event of any such default that remains
uncured upon the expiration of any applicable grace or cure period, the principal sum remaining
unpaid hereunder, together with all accrued and unpaid interest thereon, and all other liabilities
of the Borrower under this Note, shall become due and payable at any time thereafter at the option
of the Bank, immediately upon the Bank’s written notice or demand. Also in that event, the Bank
shall have the remedies of a secured party under the Uniform Commercial Code and, without limiting
the generality of the foregoing, the immediate and unconditional right to set off against this Note
all money owed by Bank in any capacity to each “Obligor” (which term includes Borrower and any
guarantor or other person or entity now or hereafter obligated for all or part of the indebtedness
of Borrower under this Note, or under any mortgage or other loan document securing or made at any
time in connection with this Note, whether or not then otherwise due, and also to set off against
all other liabilities of each Obligor to Bank all money owed by Bank in any capacity to each
Obligor; and, Bank shall be deemed to have exercised such right of set-off and to have made a
charge against any such money immediately upon the occurrence of such default that remains uncured
upon the expiration of any applicable grace or cure period, even though such a charge is made or
entered on the books of Bank at a later time.

     In enforcing its remedies for default, unless any collateral security for this Note
(“Collateral”) is perishable or threatens to decline speedily in value, or is of a type customarily
sold on a recognized market, the Bank will give Borrower reasonable notice of the time and place of
any public sale thereof or of the time after which any private sale or any other intended
disposition thereof is to be made. The requirement of reasonable notice shall be met if such notice
is mailed, postage prepaid, to Borrower at the address given below or at any other address shown on
the records of the Bank, at least five (5) days before the time of the sale or disposition. In
connection with the disposition of any Collateral at the instance of the Bank, Borrower shall be
and remain liable for any deficiency, and Bank shall account to Borrower for any surplus, provided,
however, that the Bank shall have the right to apply all or any part of such surplus (or to hold
the same as a reserve against) any and all other liabilities of Borrower to Bank, and further
provided that no provision of this Note or of any mortgage or other loan document securing or made
at any time in connection with this Note shall be construed to require that the Bank seek recourse
against any Collateral before or to the exclusion of any other default rights and remedies that the
Bank may have under applicable law. Borrower promises and agrees to pay all costs and expenses of
collection and reasonable attorneys’ fee, including costs, expenses and reasonable attorneys’ fees
on appeal, if sought or collected by the Bank through legal proceedings or through an attorney at
law.

     Bank shall have the right, which may be exercised at any time whether or not this Note is then
due, to notify any one or more of the Obligors to make payment to Bank on any amounts due or to
become due on any Collateral. In the event of any default hereunder (subject to any applicable
cure period), Bank shall thereafter have, but shall not be limited to, the following rights; (i) to

4

 

transfer this Note and the Collateral, whereupon Bank shall be relieved from all further
liabilities, duties and responsibilities hereunder and with respect to any Collateral so pledged or
transferred, and any transferee shall for all purposes stand in the place of Bank hereunder and
have all the rights of Bank hereunder; (ii) to transfer the whole or any part of the Collateral
into the name of itself or its nominee; (iii) to vote the Collateral; (iv) to demand, sue for,
collect, or make any compromise or settlement it deems desirable with reference to the Collateral;
and, (v) to take control of any proceeds of Collateral.

     No delay or omission on the part of Bank in exercising any right hereunder shall operate as a
waiver of such right or of any other right under this Note. Presentment, demand, protest, notice
of dishonor, and extension of time without notice are hereby waived by Borrower and each and every
other Obligor. Except as otherwise expressly provided in this Note or by applicable law, any
notice to Borrower regarding this Note shall be sufficiently served for all purposes if placed in
the mail, postage prepaid, addressed to or left upon the premises at the address shown below or any
other address shown on the Bank’s records. Time is of the essence in all matters relating to this
Note.

     This Note is a consolidation, amendment and restatement of the Notes which are owned and held
by Bank. This Note shall not operate to discharge, satisfy, cancel, release or repay, or be deemed
a substitution or novation of, the indebtedness heretofore evidenced by the Consolidated Notes,
which indebtedness is hereby expressly preserved and confirmed in all respects.

     Bank may, at any time, sell, transfer or assign this Note, the related security instrument and
any related loan documents, and any or all servicing rights with respect thereto, or grant
participations therein or issue mortgage pass-through certificates or other securities evidencing a
beneficial interest in a rated or unrated public offering or private placement (the “Securities”).
Bank may forward to each purchaser, transferee, assignee, servicer, participant, or investor in
such Securities or any Rating Agency (as hereinafter defined) rating such Securities (collectively,
the “Investor”) and each prospective Investor, all documents and information which Bank now has or
may hereafter acquire relating to the Borrower, any loan to Borrower, any guarantor, any Obligor,
the Collateral or the property, whether furnished by Borrower, any guarantor or otherwise, as Bank
determines necessary or desirable. The term “Rating Agency” shall mean each statistical rating
agency that has assigned a rating to the Securities.

     JURY TRIAL WAIVER. BORROWER AND BANK HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY, AND
IRREVOCABLY WAIVE THE RIGHT EITHER OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY
LITIGATION, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, BASED HEREON, OR ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS AGREEMENT AND ANY OTHER DOCUMENT OR INSTRUMENT CONTEMPLATED TO BE
EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO. THIS PROVISION IS A MATERIAL INDUCEMENT FOR
BANK ENTERING INTO THIS AGREEMENT. FURTHER, BORROWER HEREBY CERTIFIES THAT NO REPRESENTATIVE OR
AGENT OF BANK, NOR BANK’S COUNSEL HAS THE AUTHORITY TO WAIVE, CONDITION, OR MODIFY THIS PROVISION.

5

 

     IN WITNESS WHEREOF, Borrower has executed and delivered this Note on the date first above
written.

	 	 	 	 	 
	 	Borrower:

SADDLEBROOK RESORTS, INC.,

a Florida corporation

 	 
	 	By:  	/s/ Thomas L. Dempey
 	 
	 	 	Thomas L. Dempsey 	 
	 	 	Its Chief Executive Officer 	 
	 

Borrower’s Address:

5700 Saddlebrook Way

Wesley Chapel, Florida 33543

6

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