Document:

Unassociated Document

 

EXHIBIT 10.4

STATE OF FLORIDA

OFFICE OF THE GOVERNOR

GRANT FUND AGREEMENT

 

AGREEMENT

 

THIS AGREEMENT (OT09-152) is made and entered into this 30 day of June, 2009, by and between the State of Florida, Executive Office of the Governor’s Office of Tourism, Trade, and Economic Development, hereinafter referred to as “OTTED,” and Wyndcrest DD Florida, Inc., hereinafter referred to as the “Grant Fund Awardee”.

OTTED has determined that the Grant Fund Awardee has met all of the requirements necessary to receive a Grant Fund, and

Documents evidencing the operating plan for the creation of jobs and economic development are attached hereto and incorporated as an integral part of this agreement, and will be referred to as “Exhibit A.”

This Agreement is neither a general obligation of the State of Florida, nor is it backed by the full faith and credit of the State of Florida. Payment of Grant Fund Awards are conditioned on and subject to specific annual appropriations by the Florida Legislature of funds sufficient to pay amounts authorized, and

In consideration for the mutual promises and agreements contained herein, and other valuable and good consideration, OTTED and the Grant Fund Awardee agree as follow:

  

1

  

1.0 PARTIES: The parties and their respective addresses for purposes of this Agreement are as follows:

 

State of Florida

Office of the Governor

Office of Tourism, Trade, and Economic Development

The Capitol, Suite 2001

Tallahassee, Florida 32399-0001

Fax Number: (850) 487-3014

 

Wyndcrest DD Florida, Inc.

11450 S.E. Dixie Highway, Suite 500

Hobe Sound, Florida 33455

Fax Number: (772) 545-9065

 

2.0 ADMINISTRATORS:

The State’s Grant Fund Award Agreement administrator is:

  Timothy E. Proctor. Chief Analyst                                                                                                              .

The Grant Fund Awardee Agreement administrator is:

  Jonathan Teaford, President and CFO                                                                                                          .

All approvals and notifications referenced in this Agreement must be obtained in writing from the parties’ agreement administrators or their duly authorized designees.

3.0 TERM: The term of this Agreement shall commence upon the date of execution of this Agreement, and continue through June 30, 2019 for all terms except for the record-keeping and audit-related obligations (Paragraphs 7.0(f) and 19.0) of the Grant Fund Awardee (which shall continue until June 30, 2024), unless terminated prior to that time as provided for in this Agreement.

  

2

  

 

4.0 GRANT FUND AWARDEE DESCRIPTION:

(a) The Grant Fund Awardee is or will be an operating unit of Wyndcrest DD Florida, Inc.. It is identified for unemployment compensation purposes under the unit name of Wyndcrest DD Florida. Inc.; account number,    0029073260   .

 

(b) The Grant Fund Awardee understands and agrees that the requirements in Paragraphs 7.0, 9.0, 10.0 and 19.0 of this Agreement pertain only to the project described in Paragraph 5.0(a) of this Agreement for the business unit described in Paragraph 4.0(a) of this Agreement.

5.0 PROJECT DESCRIPTION AND AWARD CONDITIONS:

(a) This project will include the location of the Grant Fund Awardee’s digital production studio in the City of Port Saint Lucie, Saint Lucie County of Florida,

(b) The “Award Conditions” for the payment of $20,000,000 (herein referred to as the “Grant Fund Award”) to be released and placed in trust with the State Board of Administration, shall be met when the following have occurred:

(1) Execution of the Grant Fund Agreement prior to June 30, 2009; and

(2) Final County selection prior to June 26, 2009 at noon, E.D.T.; Conditions (b)(1) and (2) must be met prior to June 30, 2009 prior to release of the disbursement of the payment to the trust account.

(c) The “Award Conditions” for the release of the first payment of $7,000,000 from the trust account to the Grant Fund Awardee shall be met when the following have occurred:

(1) Demonstration of local support in the form of a local resolution from the City of Port Saint Lucie, Saint Lucie County in Florida stating that they are in support of the project;

  

3

  

 

(2) Site agreement, lease or similar document for the land to construct or occupy a facility suitable for not less than 500 people;

(3) Demonstration of recruitment and hiring activities for executive management positions; and

 

(4) Public announcement of the project’s intention to locate in the City of Port Saint Lucie, Saint Lucie County in Florida.

Supporting documentation shall be submitted to OTTED for verification of the aforementioned conditions. Verification must be complete to OTTED’s satisfaction prior to the disbursement of the payment and verification shall not be unreasonably withheld. To receive payment, conditions (1), (2), and (3) are to be met no later than September 30, 2009; however, this date may be extended to December 31, 2009, with the express written approval of OTTED, which approval will not be unreasonably withheld.

(d) The “Award Conditions” for the release of the second payment of $5,000,000 from the trust account to the Grant Fund Awardee shall be met when the following have occurred:

(1) Closure on Site agreement, lease or similar document for the land to construction or occupy a facility suitable for not less than 500 people in the City of Port Saint Lucie, Saint Lucie County in Florida;

 

(2) Commencement of vertical construction of the facility in addition to Capital Investment of at least $5 million;

(3) Continued demonstration of recruitment and hiring activities; and

 

(4) Established executive management team.

  

4

  

 

Supporting documentation shall be submitted to OTTED for verification of the aforementioned conditions. Verification must be complete to OTTED’s satisfaction prior to the disbursement of the payment and verification shall not be unreasonably withheld. To receive payment, conditions are expected to be met by February 28, 2010; however, this date may be extended to no later than April 30, 2010, with the express written approval of OTTED, which approval will not be unreasonably withheld.

(e) The “Award Conditions” for the release of the third payment of $4,000,000 from the trust account to the Grant Fund Awardee shall be met when the following have occurred:

(1) Creation of at least 100 net new full-time equivalent jobs in the the City of Port Saint Lucie, Saint Lucie County in Florida;

(2) The average annual wage of project jobs specified in Paragraph 5.0(e)(1) above will be at least $64,233, excluding benefits;

(3) A total Qualified Investment of at least $15 million in the City of Port Saint Lucie, Saint Lucie County in Florida by the Grant Fund Awardee; and

 

(4) Occupancy of a facility suitable for not less than 500 people in the City of Port Saint Lucie, Saint Lucie County in Florida.

Supporting documentation shall be submitted to OTTED for verification of the aforementioned conditions. Verification must be complete to OTTED’s satisfaction prior to the disbursement of the payment and verification shall not be unreasonably withheld. To receive payment, conditions are expected to be met by December 31, 2012.

(f) The “Award Conditions” for the release of the fourth payment of $4,000,000 from the trust account to the Grant Fund Awardee shall be met when the following have occurred:

  

5

  

 

(1) Creation of at least 200 net new full-time equivalent jobs in the City of Port Saint Lucie, Saint Lucie County in Florida;

(2) The average annual wage of project jobs specified in Paragraph 5.0(f)(1) above will be at least $64,233, excluding benefits;

(3) An aggregate Qualified Investment of at least $25 million in the City of Port Saint Lucie, Saint Lucie County in Florida by the Grant Fund Awardee; and

Supporting documentation shall be submitted to OTTED for verification of the aforementioned conditions. Verification must be complete to OTTED’s satisfaction prior to the disbursement of the payment and verification shall not be unreasonably withheld. To receive payment, conditions are expected to be met by December 31, 2013.

(g) In order to remain qualified for the Grant Fund Award payment authorized in this Agreement and to avoid sanctions, the Grant Fund Awardee must meet the conditions below:

(1) Creation of at least 500 new jobs in accordance with the project’s QTI Tax Refund schedule fully implemented by December 31, 2014 (These jobs will be phased in with the first phase consisting of the creation of 7 net new full-time equivalent jobs fully implemented by December 31, 2009; the second phase will consist of an additional 54 jobs for a cumulative total of 61 net new full-time equivalent jobs fully implemented by December 31, 2010; the third phase will consist of an additional 40 jobs for a cumulative total of 101 net new full-time equivalent jobs, fully implemented by December 31, 2011; the fourth phase will consist of an additional 47 jobs for a cumulative total of 148 net new full-time equivalent jobs, to be implemented by December 31, 2012; the fifth will consist of an additional 110 jobs for a cumulative total of 258 net new full-time equivalent jobs, to be fully implemented by December 31, 2013; and the sixth and final phase will consist of an additional 242 jobs for a cumulative total of 500 net new full-time equivalent jobs, to be fully implemented by December 31, 2014.);

  

6

  

(2) The Base Period for this project’s jobs will be the twelve full months prior to July 1, 2009 and will consist of 3 full-time equivalent employees;

(3) The average annual wage of project jobs specified in Paragraph 5.0(g)(1) above will be at least $64,233, excluding benefits;

(4) The Grant Fund Awardee and its subsidiaries, in conjunction with the developer of the Tradition Development in the City of Port Saint Lucie, Saint Lucie County in Florida must invest, as verified by OTTED, a total Qualified Investment (defined below) of at least $50,000,000 in the new facility by December 31, 2014. A Qualified Investment shall include the cumulative sum of the following investments: the sum of all hard and soft costs incurred in the construction of improvements to the real property as would be included in the basis of such property for federal income tax purposes; the purchase price of furniture, fixtures and equipment that are purchased; the asset value of furniture, fixtures and equipment subject to capital leases, as defined by GAAP, the net present value of lease payments for furniture, fixtures and equipment subject to an operating lease, as defined by GAAP; the cost of capitalized expenditures, as determined by GAAP, and the appraised value of real and personal property that is acquired, including, but not limited to, land on which the project facility is to be constructed or leased. Documentation of this investment, to include financial documents from the developer of the Tradition Development in the City of Port Saint Lucie, Saint Lucie County in Florida must be presented to OTTED or its agent by January 31, 2015. Any assests constituting the required Qualified Investment, must be maintained at the county facility for an additional four (4) years until at least December 31, 2018.

  

7

  

 

(h) The Grant Fund Awardee may make a one-time election to extend the job creation and investment schedule by one year. This election must be communicated to OTTED, and approved by OTTED, in writing. Exercising this option shall result in a one-year extension of the term of the performance requirements and sanctions.

 

6.0 NOTICES: All notices pertaining to this Agreement are in effect upon receipt by OTTED, shall be in writing and shall be transmitted either by personal hand delivery; United States Post Office, return receipt requested; or, overnight express mail delivery. E-mail and facsimile transmission may be used if the notice is also transmitted by one of the preceding forms of delivery. The addresses set forth above for the respective Parties shall be the places where notices shall be sent, unless prior written notice of change of address is given.

7.0 DUTIES OF THE GRANT FUND AWARDEE: The Grant Fund Awardee agrees that to qualify and remain qualified for the Grant Fund Award payment authorized herein, the Grant Fund Awardee must:

(a) Undertake the project and meet all of the Award Conditions as specified in Paragraphs 5.0(b), 5.0(c), 5.0(d), 5.0(e) and 5.0(f) of this Agreement.

(b) Submit its request for the Grant Fund Award payment authorized in Section 9.0 of this Agreement in a letter format and clearly state that it certifies each of the relevant specific requirements in Paragraphs 5.0(b), 5.0(c), 5.0 (d), 5.0(e) and 5.0(f) of this Agreement have been met, and provide supporting documentation reasonably acceptable to OTTED.

(c) Submit annual certification of its employment and annual average wage payment using a Qualified Target Industry Tax Refund (QTI) Claim application or alternate equivalent documentation acceptable to OTTED, every State of Florida fiscal year by January 31 of said year. The QTI claim application or alternate equivalent documentation must be submitted annually through January 31, 2019.

  

8

  

 

(d) Certify and submit documentation that at least 80 percent of the total investment specified in Paragraph 5.0(g)(4) has been made in the facility in the City of Port Saint Lucie, Saint Lucie County in Florida as of December 31, 2014, and continues to be located in the City of Port Saint Lucie, Saint Lucie County in Florida as of December 31, 2019.

 

(e) Notify OTTED in writing of any material developments that impact the implementation or operation of this Agreement or the project that this Agreement covers. Such material developments will include, but not be limited to: announcements with regard to the project, cancellation of the project, or change in ownership of the Grant Fund Awardee.

(f) Maintain personnel and financial records and reports related to the jobs, wages, and cumulative investment that are the subject of this Agreement and submit reports to OTTED as requested.

8.0 LIABILITY AND INDEMNIFICATION: OTTED will not assume any liability for the acts, omissions to act, or negligence of the Grant Fund Awardee, its agents, servants, or employees; nor will the Grant Fund Awardee exclude liability for its own acts, omissions to act, or negligence to OTTED.

 

To the extent permitted by law, the Grant Fund Awardee agrees to indemnify and hold OTTED harmless from and against any and all claims or demands for damages resulting from personal injury, including death or damage to property, arising out of any activities performed under this Agreement and will investigate all claims at its own expense. However, neither OTTED nor any agency or subdivision of the State of Florida waives any defense of sovereign immunity or increases the limits of its liability upon entering into this contractual relationship.

  

9

  

 

9.0 DUTIES OF OTTED: OTTED agrees that the Grant Fund Awardee will be eligible to receive a total amount of TWENTY MILLION DOLLARS ($20,000,000) from the Grant Fund contingent upon meeting the requirements established in Paragraphs 5.0(b), 5.0(c), 5.0(d), 5.0(e) and 5.0(f) of this Agreement. Each payment will be paid within 30 days of verification by OTTED, or OTTED’s designee, that the Grant Fund Awardee has met the conditions in relevant specific requirements in Paragraphs 5.0(b), 5.0(c), 53.0(d), 5.0(e) and 5.0(f) of this Agreement, for the project specified in Paragraph 5.0(a) of this Agreement.

10.0 TERMINATION AND SANCTIONS:

(a) This Agreement may be terminated by OTTED upon failure of the Grant Fund Awardee to comply to OTTED’s reasonable satisfaction with any term or condition of this Agreement or a decision by the Grant Fund Awardee either not to proceed with the project defined in Paragraph 5.0(a) of this Agreement or to proceed with that project in a location outside of the specified County in Florida. This provision shall not apply if such decision is made as the result of the City of Port Saint Lucie and Saint Lucie County in Florida withdrawing their support. Written documentation of this decision should be provided to OTTED by the City of Port Saint Lucie and Saint Lucie County.

(b) A termination will result in the loss of eligibility for receipt of the Grant Fund Award payment previously authorized. If the Grant Fund Award has been paid, the Grant Fund Awardee may be required to repay the grant amount and a penalty, as outlined below in (d), (e), (f), (g), and (h) of this section.

(c) Notwithstanding Paragraphs (a) and (b) above, in the event that OTTED fails to pay the Grant Fund Awardee a Grant Fund Award payment, to which the Grant Fund Awardee is entitled under this Agreement the Grant Fund Awardee has the right to seek all remedies available by law, or has the right to mediation or arbitration, if agreed to by the parties.

  

10

  

 

(d) In any year in which the actual number of jobs for a job creation or maintenance phase scheduled in Paragraph 5.0(f)(1) of this agreement falls below 80 percent of the number of jobs so scheduled, the Grant Fund Awardee shall repay an amount equal to one-fifth of the Grant Fund Award payment plus interest, as determined in Paragraph 10.0(h), on the amount repaid.

(e) If in any year the actual number of jobs is at least 80 percent of the jobs scheduled in Paragraph 5.0(f)(1) of this Agreement, but less than the required number of jobs, the Grant Fund Awardee shall repay a pro rated share of one-fifth of the Grant Fund Award payment plus interest, as determined in Paragraph 10.0(h), on the amount repaid.

(f) In any year the average wage falls below the average wage agreed to in Paragraph 5.0(f)(3) of this Agreement, the Grant Fund Awardee shall repay one-fifth of the Grant Fund Award plus interest, as determined in Paragraph 10.0(h), on the amount repaid.

(g) If the Qualified Investment for the project specified in Paragraph 5.0(a) of this Agreement has not reached 80 percent of the Qualified Investment scheduled in Paragraph 5.0(f)(4) of this Agreement by the date specified in Paragraph 5.0(f)(4) of this Agreement, the Grant Fund Awardee shall repay a prorated share of the Grant Fund Award payment plus interest, as determined in Paragraph 10.0(h), on the amount repaid.

(h) The interest rate shall be determined by the average interest rate received by the State on mid-term investments at the time payment is due.

(i) In no year shall the amount required to be repaid exceed the larger of the individual amounts determined in Paragraphs 10.0(d), (e), (f), or (g), and total cumulative payments shall never exceed the value of the total award plus interest as determined in Paragraph 10.0.

  

11

  

 

(j) Any required repayment, interest and/or penalty, is due to OTTED within sixty (60) days of receipt of written notice from OTTED.

(k) OTTED, or its designated agent, may conduct on site visits of the project facility during business hours to verify the Grant Fund Awardee’s investment, employment and wage records provided that reasonable notice is given.

11.0 INDEPENDENT CAPACITY OF THE GRANT FUND AWARDEE: The parties agree that the Grant Fund Awardee, its officers, agents, and employees, in performance of this Agreement, will act in the capacity of an independent contractor and not as an officer, employee, or agent of the State. The Grant Fund Awardee is not entitled to accrue any benefits of State employment, including retirement benefits and any other rights or privileges connected with employment. The Grant Fund Awardee agrees to take such steps as may be necessary to ensure that each subcontractor of the Grant Fund Awardee will be deemed to be an independent contractor and will not be considered or permitted to be an agent of the State.

The Grant Fund Awardee has no authority to, and shall not pledge the State’s credit or make OTTED a guarantor of payment or surety for any contract, debt, obligation, judgment lien, or any form of indebtedness.

12.0 LEGAL REQUIREMENTS:

(a) This Agreement is executed and entered into in the State of Florida, and will be construed, performed, and enforced in all respects in strict conformity with local, state, and federal laws, rules, and regulations. Each party will perform its obligations in accordance with the terms and conditions of this Agreement. Any and all litigation arising under this Agreement shall be brought in the appropriate court in Leon County, Florida, applying Florida law.

  

12

  

 

(b) If any term or provision of this Agreement is found to be illegal and unenforceable, the remainder of this Agreement will remain in full force and effect and such term or provision will be deemed stricken.

 

13.0 PUBLIC ENTITY CRIMES: The Grant Fund Awardee affirms that it is aware of the provisions of Section 287.133(2)(a), Florida Statutes, and that at no time has the Grant Fund Awardee been convicted of a Public Entity Crime. The Grant Fund Awardee agrees that it shall not violate such law and further acknowledges and agrees that any conviction during the term of this Agreement may result in the termination of this Agreement.

 

14.0 UNAUTHORIZED ALIENS: OTTED will consider the employment of unauthorized aliens, by any contractor or subcontractor, as described by Section 274A(e) of the Immigration and Nationalization Act, cause for termination of this Agreement.

15.0 NON-DISCRIMINATION: The Grant Fund Awardee will not discriminate against any employee employed in the performance of this Agreement, or against any applicant for employment because of age, ethnicity, race, religious belief, disability, national origin, or sex. The Grant Fund Awardee shall provide a harassment-free workplace, with any allegation of harassment given priority attention and action by management. The Grant Fund Awardee shall insert a similar provision in all subcontracts for services by this Agreement.

The Grant Fund Awardee affirms that it is aware of the provisions of Section 287.134(2)(a), Florida Statutes, and that at no time has the Grant Fund Awardee been placed on the Discriminatory Vendor List. The Grant Fund Awardee further agrees that it shall not violate such law and acknowledges and agrees that placement on the list during the term of this Agreement may result in the termination of this Agreement,

  

13

  

 

16.0 ATTORNEY FEES: Unless authorized by law and agreed to in writing by OTTED and the Grant Fund Awardee, neither party will be liable to pay attorney fees, interest, or cost of collection.

 

17.0 TRAVEL: There shall be no reimbursement of travel expenses exceeding the all-inclusive funds allocated in this Grant Fund Agreement.

18.0 PRESERVATION OF REMEDIES: No delay or omission to exercise any right, power, or remedy accruing to either party upon breach or default by either party under this Agreement, will impair any such right, power or remedy of either party; nor will such delay or omission be construed as a waiver of any breach or default or any similar breach or default.

19.0 ACCOUNTING AND AUDITS: The Grant Fund Awardee agrees:

(a) To maintain books, records, documents and other evidence according to generally accepted accounting principles, procedures, and practices that sufficiently and properly reflect all costs of any nature expended in the performance of this Agreement, and retain said copies for a period of five (5) years after termination of the conclusion of this Agreement (June 30, 2024). If any litigation, claim, negotiation, audit or other action involving the records has been started before the expiration of the five (5) years, the records shall be retained until completion of the action and resolution of all issues which arise from it.

(b) To make the books, records, documents and other evidence available for inspection, review, or audit by state personnel of the Office of the Auditor General, Department of Financial Services, or other state personnel authorized by OTTED. Copies of the reporting package required by this agreement shall be submitted by or on behalf of the recipient to OTTED and the State of Florida Auditor General.

  

14

  

 

(c) To include the aforementioned audit and record keeping requirements and the provisions contained in “Exhibit B” in contracts and sub-contracts entered into by the Grant Fund Awardee with any party for work required in the performance of this Agreement.

20.0 PUBLIC RECORDS: The Grant Fund Awardee must allow public access to all public records made or received by the Grant Fund Awardee in conjunction with the Grant Fund Award payment subject to the provisions of Chapter 119, Florida Statutes, except materials that relate to methods of manufacture or production, potential trade secrets, potentially patentable material, actual trade secrets, business transactions, financial and proprietary information, and agreements or proposals to receive funding that are received, generated, ascertained, or discovered by OTTED, as exempted in Section 288.9520, Florida Statutes, or as exempted under Sections 288.075, Florida Statutes. Refusal of the Grant Fund Awardee to allow access to records as provided in this Agreement shall constitute grounds for unilateral cancellation of this Agreement.

The Grant Fund Awardee must make publicly available, upon request, the following information: the name of the business, the amount of the Grant Fund Award payment, the number of actual new full-time equivalent jobs created, and the amount of capital investment completed.

21.0 LOBBYING: Payments obtained under this Agreement may not be used for the purpose of lobbying the Legislature, the judicial branch, or a state agency, pursuant to Section 216.347, Florida Statutes.

  

15

  

 

22.0 NON-ASSIGNMENT: Neither party may assign, sublicense, nor otherwise transfer its rights, duties, or obligations under this Agreement without the prior written consent of the other party, which consent will not be unreasonably withheld. Any assignment, sublicense, or transfer occurring will be null and void; provided, however that OTTED will at all times be entitled to assign or transfer its rights, duties, or obligations under this Agreement to another governmental agency in the State of Florida, upon giving prior written notice to the Grant Fund Awardee. In the event that OTTED approves transfer of the Grant Fund Awardee’s obligations, the Grant Fund Awardee remains responsible for all work performed and all expenses incurred in connection with this Agreement.

23.0 ENTIRE AGREEMENT: This instrument embodies the entire agreement of the parties. There are no provisions, terms, condition, or obligations other than those contained in this agreement; and this agreement supersedes all previous communication, representation, or agreement, either verbal or written, between the parties. No amendment will be effective unless reduced to writing and signed by an authorized officer of the Grant Fund Awardee and the authorized agent of OTTED.

  

16

  

 

DUPLICATE ORIGINALS: This Agreement is executed in duplicate originals.

 

In Witness whereof, OTTED and the Grant Fund Awardee have caused this agreement to be executed and delivered by their duly authorized representatives.

 

	
STATE OF FLORIDA

OFFICE OF TOURISM, TRADE,

AND ECONOMIC DEVELOPMENT

	  	
WYNDCREST DD FLORIDA, INC.

	 	  	  	  	  	  	  
	
 

	
6/30/09

	  	
 

	
6/27/09

	AUTHORIZED SIGNATURE	
Date

	  	
AUTHORIZED SIGNATURE

	
Date

	 	  	  	  	  	  	  
	TITLE: 	
    Dep.      Director

	  	
TITLE: 

	
President & CFO

	 	 	 	 	 	 
	WITNESSES:	  	
WITNESSES:

	
 

	 	
 

	
 

	 	
 

 

List of Exhibits:

 

	 	
Exhibit A:

	
Documents evidencing the operating plan for the creation of jobs and economic development

 

	 	
Exhibit B:

	
Special Audit Requirements

 

	 	
Exhibit C:

	
Criteria for Measurement of Achievement of Terms for New Full-time Equivalent Jobs and Average Annual Wage (where applicable)

  

17Unassociated Document

 

EXHIBIT 10.5

 

TRUST AGREEMENT

 

  

By and among

 

WYNDCREST DD FLORIDA, INC.

THE OFFICE OF TOURISM, TRADE, AND ECONOMIC DEVELOPMENT

AND

THE STATE BOARD OF ADMINISTRATION OF FLORIDA,

as Trustee

Dated as of September 16, 2009

  

  

  

 

TABLE OF CONTENTS

	  	 	  	 	
Page

	  	 	  	 	  
	
Section 1.

	 	
Appointment of Trustee

	 	
1

	
Section 2.

	 	
Establishment of Trust

	 	
1

	
Section 3.

	 	
Term of Trust Agreement

	 	
2

	
Section 4.

	 	
Holding of the Grant Fund Award

	 	
2

	
Section 5.

	 	
Receipt

	 	
3

	
Section 6.

	 	
Rights in the Grant Fund Award

	 	
3

	
Section 7.

	 	
Disputes with Respect to Grant Fund Award

	 	
3

	
Section 8.

	 	
Resignation and Removal of Trustee

	 	
4

	
Section 9.

	 	
Liability of Trustee

	 	
4

	
Section 10.

	 	
Miscellaneous

	 	
5

	
10.1.

	 	
Expenses

	 	
5

	
10.2.

	 	
Notice

	 	
5

	
10.3.

	 	
Amendment or Waiver

	 	
6

	
10.4.

	 	
Severability

	 	
6

	
10.5.

	 	
Governing Law

	 	
6

	
10.6.

	 	
Entire Agreement; Assignment

	 	
6

	
10.7.

	 	
Binding Effect

	 	
7

	
10.8.

	 	
Execution in Counterparts

	 	
7

	
10.9.

	 	
Descriptive Headings

	 	
7

	
10.10.

	 	
Person and Gender

	 	
7

	
10.11.

	 	
Construction

	 	
7

	
EXHIBIT A - INVESTMENT GUIDELINES

	
EXHIBIT B - DESIGNATED REPRESENTATIVES

	
EXHIBIT C - FEES AND INSTRUCTIONS

	
EXHIBIT D - FORM OF WRITTEN DISBURSEMENT REQUEST

	
EXHIBIT E - OTTED ACKNOWLEDGEMENT

 

  

  

  

 

TRUST AGREEMENT

THIS TRUST AGREEMENT (the “Trust Agreement”), dated as of September 16, 2009, is entered into by and among (i) Wyndcrest DD Florida, Inc. (the “Awardee”), (ii) the State of Florida, Executive Office of the Governor’s Office of Tourism, Trade, and Economic Development (“OTTED”), and (iii) The State Board of Administration of Florida, as trustee (“Trustee”).

WITNESSETH:

WHEREAS, the Awardee and OTTED have entered into that Grant Fund Award Agreement, dated June 27, 2009, as may be amended in accordance with its terms (the “Agreement”), by and between Awardee and OTTED, which awards to the Awardee $20,000,000, (the “Grant Fund Award”); and

WHEREAS, the capitalized terms in this Trust Agreement that are not defined herein shall have the same meaning as the same terms used in the Agreement; and

WHEREAS, the Agreement sets forth certain Award Conditions that the Awardee must meet before the disbursement of certain portions of the Grant Fund Award; and

WHEREAS, OTTED has determined that such portions of the Grant Fund Award should be held in trust pending satisfaction of such Award Conditions; and

WHEREAS, OTTED has agreed to transfer $13,000,000 (Thirteen Million Dollars) of the Grant Fund Award to the Trustee, who shall hold the Grant Fund Award in trust for the sole purpose of disbursing such funds to the Awardee in accordance with the terms of this Trust Agreement; and

NOW, THEREFORE, in consideration of the consummation of the transactions contemplated by the Agreement and the mutual covenants and agreements contained herein, the parties hereto agree as follows:

Section 1.          Appointment of Trustee. OTTED hereby appoints the State Board of Administration of Florida as the Trustee under this Trust Agreement. The Trustee is hereby authorized to take any and all actions indicated in this Trust Agreement to be taken by the Trustee and all such further actions consistent herewith as Trustee shall deem necessary or desirable to implement the provisions hereof. The Trustee represents and warrants to OTTED and the Awardee that it has all legal power and authority to act in the manner contemplated by this Trust Agreement. OTTED and the Awardee agree that, except as provided in this Trust Agreement, the authorization and designation of the Trustee under this Section 1 shall be irrevocable and shall be binding upon their successors and assigns.

Section 2.          Establishment of Trust. (a) Within five business days hereof, OTTED shall cause the Grant Fund Award to be transferred to the Trustee, which shall deposit the Grant Fund Award in an account invested in the manner set forth herein. The Trustee shall hold the Grant Fund Award in trust solely for the benefit of the Awardee and for the purpose of disbursing the Grant Fund Award to the Awardee in accordance with the terms and conditions set forth in the Agreement and herein. The Trustee shall have full responsibility for managing all investments of the Grant Fund Award; provided, however, that the Trustee shall invest the Grant Fund Award in a manner consistent with the Investment Guidelines set forth as Exhibit A. Except as set forth in the proceeding sentence, Trustee will not rely on, or require Awardee or OTTED to review any investment decisions or to make any investment recommendations.

 

  

- 1 -

  

 

(b)            The Trustee shall perform its investment duties in accordance with the fiduciary standards set forth in Section 215.47(9), Florida Statutes. The persons listed as “designated representatives” of Awardee (on the most recent Participant Account Maintenance Form described below) and Trustee on Exhibit B are responsible for the day-to-day management and coordination of transactions. Prior to the initial transfer of Grant Fund Award to the Trustee for investment, OTTED and Awardee shall complete the Participant Account Maintenance Form found in Attachment 1 to Exhibit C. The designated representatives set forth on Exhibit C may be changed by submitting a revised Participant Account Maintenance Form signed by OTTED, Awardee and Trustee, without a formal amendment to this Trust Agreement being necessary.

(c)            DISCLAIMER: Notwithstanding anything herein to the contrary, the Trustee makes no representations, warranties or guarantees regarding the performance of the funds invested hereunder.

Section 3.          Term of Trust Agreement. This Trust Agreement shall continue in effect from the date hereof until the Grant Fund Award has been fully disbursed pursuant to Section 4 hereof, or the earlier termination of this Trust Agreement in accordance with the terms hereof. OTTED shall have the right to terminate this Trust Agreement solely upon the occurrence of a material default that has not been cured in the time frames set forth in the Agreement and that entitles OTTED to terminate the Agreement and dissolve the Trust as provided in the Agreement.

Section 4.           Holding of the Grant Fund Award.

(a)           With respect to each disbursement of the Grant Fund Award, the Awardee and OTTED shall submit to the Trustee the following: (i) a completed written Disbursement Request executed by an authorized officer of Awardee, substantially in the form attached hereto as Exhibit D, certifying that the Awardee has satisfied the Award Conditions set forth in the Agreement for such disbursement; and (ii) a written acknowledgment executed by the Director of OTTED, or his or her authorized representative, substantially in the form attached hereto as Exhibit E, certifying that OTTED has determined that the Awardee has satisfied the Award Conditions for the disbursement or waived such Award Conditions, or authorizing a partial disbursement pursuant to Section 5 of the Agreement (“Disbursement Authorization”). Requests for such disbursement and related acknowledgments thereof will be executed consistent with a current Participant Account Maintenance Form filed with the Trustee, as set out in Attachment 1 to Exhibit C. Trustee shall disburse all interest and securities lending income earned on the Grant Fund Award, net of applicable fees and charges, to OTTED by December 15th via a wire transfer, or other electronic means mutually acceptable to both parties. If December 15th should fall on a weekend or holiday (including days the Trustee, OTTED, banks, or bond markets are closed), such wire transfer shall occur on the next following business day. Upon transfer of interest and security lending income, Trustee will provide to OTTED, in writing, the amount and date of transaction.

 

  

- 2 -

  

 

(b)         Within five (5) business days after receipt of the documents set forth in Section 4(a) hereof, the Trustee shall disburse the Grant Fund Awards to the Awardee in the amount set forth in the Disbursement Authorization; provided, however, that such time period may be extended by agreement of Awardee and Trustee in the case of any business disruption that materially affects the ability of the Trustee to disburse the Grant Fund Award.

(c)         Any Grant Fund Award not disbursed pursuant to a Disbursement Request shall remain invested by Trustee.

(d)         If this Trust Agreement is terminated early, any and all Grant Fund Award remaining shall be promptly distributed by Trustee to OTTED or its successor in interest. If this Trust Agreement is not terminated early, the Disbursement Request and related acknowledgement for the final disbursement of the Grant Fund Award shall provide for disbursement to Awardee of all of the Grant Fund Award remaining in the Trust.

Section 5.          Receipt. Delivery by the Trustee to the Awardee of a signed and dated acknowledgment of receipt of funds shall serve as acknowledgment by the Trustee of receipt of the Grant Fund Award (and any related instruments of transfer) on the date shown on such signed receipt and acceptance of the Grant Fund Award in trust.

Section 6.          Rights in the Grant Fund Award. While any amount of the Grant Fund Award is held by the Trustee, and pending the release thereof in accordance with Section 4 hereof, Trustee shall retain legal title in and to such amount of the Grant Fund Award (other than any interest or investment income resulting from the investment of the Grant Fund Award which shall at all times be the property of the State of Florida) that has not been disbursed pursuant to the terms hereof; provided, however, that, upon termination of this Trust Agreement, all legal and beneficial rights to the Grant Fund Award that have not been disbursed shall automatically vest in OTTED.

Section 7.          Disputes with Respect to Grant Fund Award. If, at any time, there shall exist any dispute between OTTED and the Awardee with respect to the holding or disposition of any portion of the Grant Fund Award or any other obligations of Trustee hereunder, or if at any time Trustee is unable to determine, to Trustee’s sole satisfaction, the proper disposition of any portion of the Grant Fund Award or Trustee’s proper actions with respect to the Trustee’s obligations hereunder, or if OTTED and Awardee have not, within thirty (30) days of the furnishing by Trustee of a notice of resignation pursuant to Section 8 hereof, appointed a successor Trustee to act hereunder, then Trustee may, in the Trustee’s sole discretion, take either or both of the following actions:

(a)        suspend the performance of any of Trustee’s obligations under this Trust Agreement (other than the obligation to hold the Grant Fund Award in trust and to manage the investment of the Grant Fund Award in accordance with Section 2 of this Trust Agreement) until such dispute or uncertainty shall be resolved to the sole satisfaction of Trustee or until a successor Trustee shall have been appointed (as the case may be); and/or

 

  

- 3 -

  

 

(b)        petition (by means of an interpleader action, trustee’s petition for instruction, or any other appropriate method) any court of competent jurisdiction in Leon County, Florida, for instructions with respect to such dispute or uncertainty. In the event of such petition, the only issue for adjudication shall be Trustee’s obligations herein and no question of the respective rights and obligations between OTTED and Awardee shall be adjudicated, other than in accordance with the arbitration provisions of the Agreement and the Security Agreement between OTTED and Awardee.

Trustee shall have no liability to OTTED or the Awardee or to any other person with respect to any such suspension of performance, specifically including any liability or claimed liability that may arise, or be alleged to have arisen, out of or as a result of any delay in the disbursement of the Grant Fund Award or any delay in or with respect to any other action required or requested of Trustee. Through the duration of any such suspension of performance or court proceedings or arbitration, the Grant Fund Award shall remain invested with the Trustee unless otherwise directed by a court with proper jurisdiction or the presiding arbitrator.

Section 8.          Resignation and Removal of Trustee. Trustee may resign from the performance of its duties hereunder at any time by giving thirty (30) days prior written notice to OTTED and the Awardee or may be removed, with or without cause, by OTTED and Awardee (acting jointly), at any time by the giving of five (5) days prior written notice to Trustee executed by both OTTED and Awardee. Such resignation or removal, however, shall take effect upon the appointment of a successor Trustee as provided herein below. Upon any such notice of resignation or removal, OTTED and Awardee (acting jointly) shall appoint a successor Trustee hereunder. Upon the acceptance in writing of any appointment as Trustee hereunder by a successor Trustee, such successor Trustee shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Trustee, and the retiring Trustee shall be discharged from its duties and obligations under this Trust Agreement, but shall not be discharged from any liability for actions taken as Trustee hereunder prior to such succession. After any retiring Trustee’s resignation or removal, the provisions of this Trust Agreement shall inure to its benefit as to any actions taken or omitted to be taken by Trustee while he, she or it was Trustee under this Trust Agreement. If, for any reason, Trustee is unable to perform the duties and obligations set forth in this Trust Agreement, then the Executive Director of the State Board of Administration of Florida shall serve as successor Trustee until such time as OTTED and Awardee name a successor Trustee.

Section 9.          Liability of Trustee.

(a)        Trustee shall have no liability or obligation with respect to the Grant Fund Award, except for Trustee’s willful misconduct or gross negligence. Trustee’s sole responsibilities shall be to invest and disburse the Grant Fund Award in accordance with the terms of this Trust Agreement. Trustee shall have no implied duties or obligations and shall not be charged with knowledge or notice of any fact or circumstance not specifically set forth herein. Trustee may rely upon any instrument, not only as to its due execution, validity and effectiveness, but also as to the truth and accuracy of any information contained therein, which Trustee shall in good faith believe to be genuine, to have been signed or presented by the person or parties purporting to sign the same and to conform to the provisions of this Trust Agreement. Trustee shall not be obligated to take any legal action or commence any proceeding in connection with the Grant Fund Award, this Trust Agreement or the Agreement, or to appear in, prosecute or defend any such legal action or proceeding. Trustee may consult legal counsel selected by Trustee in the event of any dispute or question as to the construction of any of the provisions hereof or of any other agreement or of the Trustee’s duties hereunder, and shall incur no liability whatsoever in acting in accordance with the opinion or instruction of such counsel. The Trustee shall be entitled to reimbursement for reasonable attorney’s fees incurred, arising out of an issue as to its rights, duties or obligations under this Trust Agreement, or as a result of dispute resolution or litigation between the parties to this Trust Agreement. Reimbursement shall be made to the Trustee by OTTED and Awardee, each party being responsible for one-half of the total attorney’s fees incurred by the Trustee.

 

  

- 4 -

  

 

(b)        The Trustee is authorized, in the Trustee’s sole discretion, to comply with orders issued or process entered by any court with respect to the Grant Fund Award. If any portion of the Grant Fund Award is at any time attached, garnished or levied upon under any court order, or in case the payment, assignment, transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment or decree shall be made or entered by any court affecting such property or any part thereof, then and in any such event, the Trustee is authorized, in the Trustee’s sole discretion, to rely upon and comply with any such order, writ, judgment or decree, which Trustee is advised by legal counsel selected by the Trustee is or may be binding upon the Trustee, without the need for appeal or other action; and if the Trustee complies with any such order, writ, judgment or decree, Trustee shall not be liable to any of the parties hereto or to any other person or entity by reason of such compliance even though such order, writ, judgment or decree may be subsequently reversed, modified, annulled, set aside or vacated.

(c)        As compensation the Trustee will be paid fees as described in Exhibit C. These fees and other charges will be deducted first from the interest or securities lending income earned on the Grant Fund Award and second (if necessary) from principal amounts of the Grand Fund Award in the manner set forth in Exhibit C.

Section 10.         Miscellaneous.

10.1.              Expenses. Except as otherwise specified, each of the parties will bear its own costs and expenses (including legal fees and expenses) incurred in connection with the negotiation and consummation of this Trust Agreement and the transactions contemplated hereby.

10.2.              Notice. All notices and other communications hereunder shall be in writing and shall be deemed to have been validly served, given or delivered (a) five (5) days after deposit in the United States mail, by certified mail with return receipt requested and postage prepaid, (b) when delivered personally, one (1) day after delivery to any overnight courier, or (c) when transmitted by facsimile transmission facilities, on the date shown on the confirmation of transmission; and addressed to the party to be notified as follows:

 

  

- 5 -

  

 

	
If to OTTED to:

	  
	 	 
	  	
The Office of Tourism, Trade and

	  	
Economic Development

	  	
Executive Office of the Governor, Suite 1902

	  	
The Capitol

	  	
Tallahassee, Florida 32399-0001

	  	
Attention: Director

	  	
Fax: (850) 414-1734

	  	  
	
If to Awardee:

	  
	 	 
	  	
Wyndcrest DD Florida, Inc.

	  	
11450 S.E. Dixie Highway, Suite 104

	  	
Hobe Sound, Florida 33455

	  	
Attention: President

	  	
Fax: 772-545-9065

	  	  
	
If to Trustee, to:

	  
	  	  
	  	
State Board of Administration of Florida

	  	
1801 Hermitage Blvd.

	  	
Tallahassee, Florida 32308

	  	
Attn: Executive Director

	  	
Fax: (850) 413-1255

A party may change its address by giving notice to the other parties as specified herein. Notices submitted electronically via computer (E-mail) will not be accepted.

10.3.              Amendment or Waiver. This Trust Agreement may be changed, waived, discharged or terminated only by a writing signed by each of OTTED, Awardee, and Trustee. No delay or omission by any party in exercising any right with respect hereto shall operate as a waiver. A waiver on any one occasion shall not be construed as a bar to, or waiver of, any right or remedy on any future occasion.

10.4.              Severability. To the extent any provision of this Trust Agreement is prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Trust Agreement.

10.5.              Governing Law. This Trust Agreement shall be construed and interpreted in accordance with the internal laws of the State of Florida without giving effect to the conflict of laws principles thereof.

10.6.              Entire Agreement; Assignment. This Trust Agreement (a) constitutes the entire agreement and supersedes all other prior agreements and understandings, both written and oral, among the parties or any of them, with respect to the subject matter hereof; (b) is not intended to confer upon any other person any rights or remedies hereunder; and (c) shall not be assigned by operation of law or otherwise except in accordance with its terms. Notwithstanding the foregoing, as between OTTED and Awardee, in the event of an irreconcilable conflict between the terms of the Agreement and the terms of this Trust Agreement, the terms of the Agreement shall control.

 

  

- 6 -

  

 

10.7.              Binding Effect. All of the terms of this Trust Agreement, as amended from time to time, shall be binding upon, inure to the benefit of and be enforceable by the respective heirs, successors and assigns of OTTED, Awardee and Trustee.

10.8.              Execution in Counterparts. This Trust Agreement and any directions issued jointly by OTTED and Awardee may be executed in two or more counterparts, which when so executed shall constitute one and the same agreement or direction.

10.9.              Descriptive Headings. The headings contained in this Trust Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Trust Agreement.

10.10.            Person and Gender. The masculine gender shall include the feminine and neuter genders; the singular shall include the plural.

10.11.            Construction. This Trust Agreement shall be interpreted without regard to any presumption or rule requiring construction against the party causing this Trust Agreement to be drafted.

[SIGNATURES ON NEXT PAGE]

 

  

- 7 -

  

 

IN WITNESS WHEREOF, the undersigned have executed this Trust Agreement as of the day set forth on the first page of this Trust Agreement.

	
WYNDCREST DD FLORIDA, INC.

	  	  
	
By:

	/s/ Jonathan Teaford
	
Name:  

	Jonathan Teaford
	
Title:

	President
	  	  
	
EXECUTIVE OFFICE OF THE GOVERNOR

	
OFFICE OF TOURISM, TRADE, AND

	
ECONOMIC DEVELOPMENT

	  	  
	
By:

	/s/ Dale A. Brill
	
Name:

	
Dale A. Brill Ph.D.

	
Title:

	
Director

	  	  
	
STATE BOARD OF ADMINISTRATION OF FLORIDA

	  	  
	
By:

	/s/ Ash Williams
	
Name:

	
Ash Williams

	
Title:

	
Executive Director & CIO

	 	  	
Approved as to legally:

	 	  	  
	 	
By:

	
/s/ Thomas A. Beenck

	 	  	
Thomas A. Beenck

	 	  	
General Counsel

 

  

- 8 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}]]