Document:

s22-9538_ex103.htm

Exhibit 10.3

 

DEVELOPMENT WORK AGREEMENT

 

THIS DEVELOPMENT WORK AGREEMENT ("Agreement") is made and entered into this 15TH day of January, 2010, by and between GINN-LA WILDERNESS LTD., LLLP (“Seller”),
a Georgia limited liability limited partnership and VR PRESERVE DEVELOPMENT, LLC (“Buyer”), a Florida limited liability company.

W I T N E S S E T H:

WHEREAS, Seller was the master developer of certain real property located in the residential community commonly known as Tesoro Preserve (the “Project”) and being located in St. Lucie County, Florida;

WHEREAS, the Project was subdivided into residential lots, common areas and other parcels and open space;

WHEREAS, of even date, Seller has conveyed to Buyer and certain affiliates of Buyer that portion of the Project described on Exhibit A attached hereto and by this reference made a part hereof (the “Property”),
which includes 82 single family residential lots and approximately 7 acres of commercially zoned land; and

WHEREAS, in accordance with that certain Contract for Sale and Purchase (Tesoro Preserve) dated December 31, 2009 between Seller and Seaboard Home Building, Corp., as amended and assigned (collectively, the “Contract”), Buyer has agreed to undertake and pay the
costs and expenses relating to certain development work at the Project, all as more particularly set forth herein.

NOW, THEREFORE, in consideration of the covenants and agreements herein contained, Ten and No/100 Dollars ($10.00) in hand paid by the parties, one to the other and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, Seller and Buyer do hereby agree as follows:

1. Development Work.

 

(a) Scope of Development Work.  Buyer,
for itself and its successors and assigns, hereby covenants and agrees that Buyer shall construct, install and complete or cause the construction, installation and completion of those improvements and matters described below (the "Development Work").

 

i) Social Club Work.  Buyer shall construct on that portion of the Project more particularly identified on Exhibit
B attached hereto and by this reference made a part hereof certain improvements which will constitute a social club for the owners and residents of the Project.  Such improvements shall be a clubhouse, a swimming pool, two (2) tennis courts and all utilities necessary for the operation and use of the clubhouse, swimming pool and tennis courts (collectively, the “Social Club Improvements”; the construction of the Social
Club Improvements is herein the “Social Club Work”).

 

 

1

 

 

ii) Road Work.  Buyer shall install the final lift of asphalt on those roads and sidewalks located within the Project as shown in Tesoro Preserve Plat No. 5,
recorded in Plat Book 54, Pages 38 and 39 (the “Road Work”).

 

iii) Entry Work.  Buyer shall design, construct and complete an entry gate and landscaping on that portion of the Project more particularly identified in Exhibit
B (the “Entry Work”).

 

iv) Permits.  Seller has obtained the permits described in Exhibit C attached hereto and by this
reference made a part hereof as “SFWMD Permits” and “Corp Permits” (collectively, the “Wetlands Permits”) relating to wetlands on or with respect to the Project.  Seller, in accordance with the terms of the Contract, intends to transfer and assign or cause to be transferred
and assigned the Wetlands Permits to Buyer and Buyer, in accordance with the terms of the Contract, intends to assume the Wetlands Permits.

 

SFWMD has issued a letter of non-compliance with respect to the SFWMD Permit identified as No. 56-01506-P, Application No. 040712-15, as modified by Application No. 020726-8; said letter  being described in Exhibit C hereto.  Within the time frame established
by SFWMD and/or the Corp, as applicable, but in all events on or before the expiration of the time period set forth in the Development Work Construction Schedule (hereinafter defined), Buyer shall correct all violations listed in the letter of non-compliance from SFWMD (the "Wetlands Work").

 

(b) Affirmative Performance Covenants.

i) Buyer shall:

 

(A) timely apply for and obtain all permits and approvals necessary to undertake the Development Work;

 

(B) after issuance of required permits and approvals and in accordance with the Development Work Construction Schedule or other applicable timing requirements, timely commence construction of the Development Work and diligently and continuously
pursue completion of the Development Work, subject to Force Majeure Events (hereinafter defined);

 

(C) insure that the quality of the Development Work shall be good and workmanlike and in compliance with all permits, ordinances, building codes, procedures, rules, regulations, laws and requirements of the applicable governmental jurisdictions
exercising control over and approval of all or any portion of the Project and/or the Development Work;

 

(D) perform all Development Work in accordance with the approved plans therefore; and

 

(E) except to the extent of good faith and diligent contest, timely comply with all regulations, laws and requirements of applicable governmental jurisdictions having control and/or approval rights with respect to any plans, permits
or plats relating to the Development Work.

ii) Buyer hereby indemnifies, holds harmless and agrees to defend Seller from and against any and all claims, suits, actions, demands (including, without limitation, third party claims, losses, costs, claims, damages, expenses and liabilities
of whatsoever nature) which may be asserted against Seller or which Seller may incur as a result of the Development Work undertaken by Buyer, including, without limitation, any personal injury or death or damage to property and all costs and expenses of litigation, arbitration, mediation and/or other formal or informal dispute resolution (including, without limitation, reasonable attorneys' fees and expenses and expert or consultants fees incurred by Seller in defense against any of the foregoing matters); provided,
however, that nothing herein shall be construed as an indemnity against any losses, costs, claims, damages, expenses or liability which arise as a result of the gross negligence or willful misconduct of Seller.  The provisions of this subparagraph shall survive the termination or expiration of this Agreement.

 

 

2

 

 

iii) Buyer acknowledges that Seller has closed the sale of 358 lots within the Project to third party purchasers.  Certain portions of the Development Work are obligations of Seller to those purchasers.  Buyer hereby
indemnifies, holds harmless and agrees to defend by counsel acceptable Seller and Buyer, Seller from any and all claims, causes of action, suits, costs, expenses, damages and other liabilities which arise or occur as a result of Buyer’s failure to timely complete the Development Work, including without limitation, any claims or actions by any existing lot owners arising from the failure to complete the Development Work.  The provisions of this subparagraph shall survive the termination or expiration
of this Agreement.

 

(c) Seller hereby indemnifies, holds harmless and agrees to defend Buyer from and against any and all claims, suits, actions, demands (including, without limitation, third party claims, losses, costs, claims, damages, expenses and liabilities
of whatsoever nature) which may be asserted against Buyer or which Buyer may incur as a result of or arising from any improvements, maintenance, or development work undertaken by Seller at the Project prior to the Closing, including, without limitation, any claims or actions by any existing lot owners, any personal injury or death or damage to property, and all costs and expenses of litigation, arbitration, mediation and/or other formal or informal dispute resolution (including, without limitation, reasonable
attorneys’ fees and expenses and expert or consultants fees incurred by Seller in defense against any of the foregoing matters); provided, however, that nothing herein shall be construed as an indemnity against any losses, costs, claims, damages, expenses or liability which arise as a result of the gross negligence or willful misconduct of Buyer which shall include, without limitation Buyer’s failure to timely complete the Development Work.  The provisions of this subparagraph shall survive
the termination or expiration of this Agreement.

2. Construction Schedule for Development Work.  Buyer, subject to Force Majeure Events, shall commence construction of all components of the Development Work on
or before January 15, 2012 and shall complete all of the Development Work on or prior to January 15, 2013 (the “Development Work Construction Schedule”).

3. Plans and Permits.

(a) Social Club Plans. Seller has prepared that certain Tesoro Preserve PUD Parcel G Site Plan dated September 6, 2006, prepared by Culpepper and Terpening, Project 04-035
and that certain Tesoro Preserve Social Clubhouse Construction Plan prepared by Peacock + Lewis (collectively, the “Social Club Plans”) for the Social Club Improvements.  Seller acknowledges that Buyer intends to value engineer the Social Club Plans and to present to Seller for its review and approval, prior to submission of the same to all governmental authority for permitting, revised Social Club Plans, a construction schedule
for the Social Club Improvements and a budget for the cost of construction, completion and furnishing of the Social Club Improvements.

 

 

3

 

 

(b) Road Work Plans.  Buyer agrees that the installation of the Road Work shall be performed in accordance with those certain Construction Plans for Tesoro Preserve
P.U.D. Parcels G and H, prepared for The Ginn Corporation, prepared by Culpepper and Terpening and consisting of Sheets 1 - 23.

 

(c) Entry Work Plans.  Buyer shall prepare plans and specifications, a construction schedule and a budget for the Entry Work and, prior to submission of the same
to a governmental authority for permitting, shall submit the same to Seller for Seller’s approval.

 

(d) Wetlands Work.  Seller has completed certain design work necessary for the Wetlands Work and such design work is included as part of the SFWMD Permits. Buyer
intends to work with SFWMD to refine the work to be undertaken pursuant to the SFWMD Permits.  Buyer, prior to commencement of the Wetlands Work shall provide to Seller for Seller’s approval any revised plans, a budget and schedule for completion of the Wetlands Work.

4.  Development Work Costs and Security.

(a) Secured Work Cost.  Buyer and Seller agree that the projected cost of the Social Club Work is Five Hundred Seventy-Nine Thousand and No/100 Dollars ($579,000.00)
and the projected cost of the Entry Work is Thirty-Five Thousand and No/100 Dollars ($35,000.00) [such projected costs are hereinafter referred to as the “Secured Work Costs”].

(b) Social Club Work and Entry Work Security.

 

i) Simultaneous with the execution of this Agreement and as security for Buyer’s obligation hereunder with respect to the Social Club Work and the Entry Work, Buyer has deposited in escrow with Old Republic National Title Insurance
Company (“Escrow Agent”) the sum of Six Hundred Fourteen Thousand and No/100 Dollars ($614,000.00), (the "SCW/EW Security").  Escrow Agent will disburse the SCW/EW Security in accordance with the draw procedures set forth in that certain escrow agreement of even date among Seller, Buyer and Escrow
Agent (the “SCW/EW Escrow Agreement”).

 

ii) In the event the final budget approved by Seller and Buyer for the Social Club Work or the Entry Work, as applicable, shall exceed the projected costs for such portion of the Development Work as set forth in Section
4(a), then within five (5) business days subsequent to the approval of the final budget for the Social Club Work or the Entry Work, as applicable, Buyer shall deposit additional cash as part of the SCW/EW Security equal to the difference in the amount of the final budget for such Development Work item and the amount of the Secured Work Costs for such item set forth in Section 4(a).

iii) Buyer, in accordance with draw procedures set forth in the SCW/EW Escrow  Agreement, shall be authorized and permitted to utilize the SCW/EW Security
solely to pay the Secured Work Costs incurred in connection with the Social Club Work or the Entry Work, as appropriate

 

 

4

 

 

(c) Wetlands Work Security.  Simultaneous with the execution of this Agreement and as security for Buyer’s obligations under the Contract (hereinafter defined)
and this Agreement relating to the Wetlands Permits, the SFWMD Bond (as defined in the Contract) and the Wetlands Work, Buyer has deposited with Escrow Agent the sum of Seven Hundred Twenty Thousand One Hundred Thirty-Seven and N/100 Dollars ($720,137.00) [the “SFWMD Security”].  Escrow Agent will disburse the SFWMD Security in accordance with the terms and conditions set forth in that certain escrow agreement of even date
among Seller, Buyer and Escrow Agent (the “SFWMD/City Bonds Escrow Agreement”).

 

(d) Road Work Security.  Simultaneous with the execution of this Agreement and as security for Buyer’s obligations under the Contract and this Agreement
relating to the City Bond (as defined in the Contract) and the Road Work, Buyer has deposited with Escrow Agent the sum of Sixty-Six Thousand One Hundred Twenty Eight and 40/100 Dollars ($66,128.40) (the “City Security”).  Escrow Agent will disburse the City Security in accordance with the terms and conditions set forth in the SFWMD/City Bonds Escrow Agreement.

 

(e) Pursuant to the terms of the Contract, Buyer is to deliver to SFWMD and the City certain security relating to the SFWMD Bonds and the Wetlands Work and the City Bond, as applicable.  Buyer and Seller acknowledge that upon
completion of all documentation relating to such Security and the acceptance thereof by the applicable governmental agencies, the Wetlands Work Security as described in Section 4(c) and the Road Work Security (as described in Section 4(d) shall be transferred to such governmental agencies, as appropriate or released as provided in the SFWMD/City Bonds Escrow Agreement.

 

5. Review of Development Work.  Buyer, from and after commencement of construction of any portion of the Development Work, shall update Seller monthly on the status
of the Development Work.  Seller, from time to time, shall have the right, but not the obligation, to review Buyer's construction of the Development Work.  Buyer and its contractors shall provide reasonable access to Seller, Seller's employees, consultants and representatives to inspect the Development Work; provided, however, that such access shall not unreasonably interfere with Buyer's construction of the Development Work.  In the event Seller determines that all or any portion
of the Development Work has not been commenced or completed within sixty (60) days subsequent to the date set forth in the Development Work Construction Schedule for such commencement or completion, other than by virtue of a Force Majeure Event, or that the Development Work is not being completed in accordance with the respective plans therefor, Seller may give notice to Buyer (a "Defect Notice") of such defect (a "Defect")
and Buyer immediately shall cause the Defect to be cured or corrected within thirty (30) days subsequent to the date of the Defect Notice or such longer period as may be reasonably required to effect such cure or correction so long as Buyer commenced and diligently pursued cure during the initial thirty (30) day period, but in no event in excess of sixty (60) days in the aggregate.

 

 

5

 

 

6. Completion of Development Work.

(a) Buyer shall be deemed to have completed the following portions of the Development Work upon the occurrence of the following with respect to the below listed portion of the Development Work:

i) Social Club Work.  A certificate of occupancy shall be issued for the clubhouse and a copy thereof delivered to Seller, the swimming pool and tennis courts
shall be open for use by owners and residents of the Project and all permits and licenses for such use shall be issued and in force, all utilities necessary for the operation and use of the clubhouse, swimming pool and tennis courts shall be installed and operations, and the draw request which contains the final payments for the Social Club Work shall have been funded.

 

ii) Road Work.  The City shall issue written acceptance of the Road Work and a copy thereof shall be delivered to Seller.

 

iii) Entry Work.  The Entry Work shall have been completed in accordance with the approved plans therefor, including the installation of all landscaping, and
Buyer shall have provided to Seller evidence of such completion.  Also, the draw request which contains the final payment for the Entry Work shall have been funded.

 

iv) Wetlands Work.  SFWMD and/or the Corp., as appropriate, shall provide written evidence of completion of the Wetlands Work and a copy thereof shall be delivered
to Seller.

(b) Buyer shall provide written notice to Seller upon completion of each portion of the Development Work.  Buyer and Seller agree that upon completion of the Development Work, or any portion thereof, that the improvements so
completed, and in some instances the land upon which such improvements are located, are to be conveyed to Tesoro Preserve Owners Association, Inc. (the "Association") and are to be designated, pursuant to the Master Declaration (hereinafter defined) as "Association Property".  Buyer shall take such actions as are necessary and appropriate to cause such conveyances as soon
as practical after completion of the applicable Development Work.

 

(c) Upon completion of the Development Work, Buyer, as declarant under that certain Amended and Restated Declaration of Covenants, Conditions and Restrictions for Tesoro Preserve, as amended and assigned from time to time (collectively,
the "Master Declaration"), shall designate as "Association Property" the land to be conveyed pursuant to Section 6(b) and shall file in the Official Records of St Lucie County an appropriate amendment to the Master Declaration reflecting such designation.

 

(d) Upon completion of the Development Work, Buyer, to the extent the same are assignable or Buyer can cause such warranties or guarantees to be assigned, shall assign to the Association, all warranties and guarantees relating to the
improvements which are conveyed to the Association.  The Association shall have the right to pursue in the place of Buyer claims, demands, actions, losses and causes of action against the contractor, subcontractors and suppliers involved in or responsible for the Development Work.

 

 

6

 

 

7. Maintenance of Improvements.  The improvements constructed by Buyer as part of the Development Work shall be maintained by Buyer or by the person or entities
required to maintain such improvements under the Master Declaration.  Seller shall have no responsibility for the maintenance of any improvements constructed as part of the Development Work.

8. Default.

(a) Buyer Default.

i) In the event Buyer, other than for reasons due to a Force Majeure Event, (i) shall fail to obtain the permits or approvals necessary to undertake the Development Work, or (ii) shall fail to caused to be prepared any plans necessary
to undertake the Development Work or (iii) shall fail to timely cure a Defect which Buyer is required to cure pursuant to Section 5 or (iv) shall cease construction of the Development Work for more than thirty (30) consecutive days, or (v) shall fail to pay contractors after the funding to Buyer of a draw under the Security, then Buyer shall be in default under this Agreement (a "Construction
Default").  Upon the occurrence of a Construction Default, Seller shall provide Buyer with written notice of such Construction Default and Buyer shall have ten (10) days following receipt of such notice or such longer period as is necessary to cure such Construction Default if Buyer shall commence to cure such Construction Default within said ten (10) day period and shall diligently pursue the cure of such Construction Default, provided, however, in no event shall the cure period be in excess
of sixty (60) days in the aggregate.  In the event Buyer fails to cure such Construction Default within said period, then,  Seller, at its option, may undertake to complete the Development Work (the "Self-Help Right").  In the event Seller shall exercise the Self-Help Right, Seller shall be entitled, in accordance with the Escrow Agreement, to have the costs of the Social Club Work and the Entry Work paid from the Security
and in accordance with the Trust Agreements, to have the costs of the Wetlands Work and Road Work paid from the Trust Accounts.  Buyer shall remain liable, notwithstanding the Construction Default, for any cost overruns in connection with Seller's completion of the Development Work.

ii) In the event Buyer shall fail to undertake its obligations under Section 6(b) in a timely manner, and such failure continues for thirty (30) days subsequent to receipt
by Buyer of written notice of such failure from Seller, then Buyer shall be in default under this Agreement (a "Buyer Conveyance Default").  Upon the occurrence of a Buyer Conveyance Default, Seller shall have the right to execute any and all documents and instruments necessary to cure the Buyer Conveyance Default.  In furtherance of the remedy above, Buyer hereby constitutes and appoints Seller as Buyer's agent and attorney-in-fact
to execute such documents and instruments as are needed to cure the Buyer Conveyance Default and Buyer hereby ratifies and confirms all of the acts and doings of Seller as Buyer's agent and attorney-in-fact.  Seller's agency and power as attorney-in-fact hereunder are coupled with an interest, cannot be revoked by insolvency, incompetency, death or otherwise, and shall not be exhausted until all of the conveyances required to be undertaken by Buyer pursuant to Section
6(b) are completed.  Notwithstanding the foregoing, the power of attorney granted Seller herein may not be utilized by Seller to in any way increase the liabilities or reduce the rights of Buyer under this Agreement or any related agreements.  The exercise of the power of attorney herein granted Seller is merely to ministerially implement the provisions of Section 6(b).

 

 

7

 

iii) In addition to the foregoing rights and remedies, upon a default by Buyer hereunder, which continues for fifteen (15) days subsequent to the delivery of a written notice from Seller to Buyer of such default, Seller may exercise
any other right or remedy allowed at law or in equity.

iv) The remedies set forth in Section 8(a)(i) - (iii) above are the sole and exclusive remedies for a default by Buyer hereunder.  The rights and remedies of
Seller as set forth herein may be exercised as often as occasion therefor shall arise, it being agreed by Buyer that the exercise or failure to exercise any of the same shall in no event be construed as a waiver or release thereof.  In the event Seller, as a result of Buyer's default hereunder, shall seek to recover damages from Buyer, such damage claim shall be limited, in all events, to actual damages, exclusive of consequential damages, special damages and punitive damages.

9. Further Assurances.  Buyer and Seller agree that each, from time to time, upon a reasonable request of the other party, shall take such further actions and
execute, acknowledge and deliver such further instruments, assignments, deeds and other documents as may be reasonably required for the fulfillment of the agreements set forth herein.

10. Force Majeure.  As used herein, a "Force Majeure Event" shall include only the following:  a delay due to acts of God (including, without limitation,
hurricane, tropical storm or tornado), fire, explosion or similar casualty, sabotage, theft, vandalism, riot or civil commotion, strike, lockout, labor discord, government restrictions or delay, stays, judgments, orders, decrees, enemy action, work stoppages, concealed or latent physical conditions encountered during performance of the Development Work, delay caused by third parties or shortages in or inability to obtain materials, supplies or laborers necessary to undertake the Development Work, including disputes
with contractors, suppliers and vendors, and similar causes beyond the reasonable control of the obligated party and not arising out of (a) the negligence, willful misconduct or illegal act of any obligated party, or (b) any cause or circumstance resulting from the insolvency, bankruptcy or lack of fund of any obligated party.  Any extension of any date set forth in the Development Work Construction Schedule due to a Force Majeure Event shall be only for delay in performance that is an actual and direct
result of such Force Majeure Event.  Buyer shall make any claim for an extension due to Force Majeure in writing within twenty (20) business days subsequent to the occurrence for which Buyer is making such claim.  Such notice shall specify in detail the cause of the claimed delay and shall identify the specific portion of the Development Work which has been delayed.  In the event of a continuing delay, only one notice is required.

11. Cooperation in Good Faith.  Buyer and Seller agree to cooperate and work in good faith in order to carry out the terms of this Agreement.

 

 

8

 

 

12. Notice.  All notices shall be in writing and shall be deemed to have been properly given on the earlier of (i) when delivered in person, (ii) when deposited
in United States mail with adequate postage and sent by registered or certified mail with return receipt requested to the appropriate party at the address set forth below or (iii) when deposited with Federal Express, UPS, Express Mail or other overnight delivery service for next day delivery, addressed to the appropriate party at the address set out below.

 

If to Seller:

 

Ginn-LA Wilderness, Ltd., LLLP

1 Hammock Beach Parkway

Palm Coast, FL 32137

Attn:  Edward R. Ginn, III

With copies to:

Morris, Manning & Martin, LLP

3343 Peachtree Road, Suite 1600

Atlanta, Georgia 30326

Attn: Jeanna Brannon, Esq.

Lubert-Adler Partners, L.P.

171 17th Street

Suite 1575

Atlanta, GA 30363

Attn:  Neill Faucett

Lubert-Adler Partners, LP

The Cira Centre

2929 Arch Street

Philadelphia, PA 19104-2868

Attn: Stuart A. Margulies

 

If to Buyer:

 

VR Preserve Development, LLC

1804 North Dixie Highway

Suite A

West Palm Beach, Florida 33407

Attn:  Joseph C. Visconti

 

 

9

 

 

With a copy to:

Curtis Shenkman, Esq.

DeSantis, Gaskill, Smith & Shenkman, P.A.

11891 US Highway One, Suite 100

North Palm Beach, FL 33408

Rejection or other refusal by the addressee to accept delivery of notice or the inability of the courier service or the United States Postal Service to effect delivery due to a change of address of which no notice was given, shall be deemed to be receipt of the notice sent.  Any party shall have the right, from time to time,
to change the address to which notices to it shall be sent by giving to the other party or parties at least ten (10) days prior notice of the changed address in accordance with this Section 12.

13. Successors and Assigns.  Neither Buyer nor Seller shall assign this Agreement or any of its rights, duties or obligations hereunder except with the prior written
consent of the other party and any attempted assignment shall be null and void.

 

14. Miscellaneous.

(a) Entire Agreement.  This Agreement constitutes the entire agreement between Buyer and Seller relating to the Development Work and may not be amended, waived
or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought.  In the event there is a conflict between the terms of that certain Contract for Sale and Purchaser (Tesoro Preserve) dated December 31, 2009, as amended and assigned between Seller and Buyer (the “Contract”) and this Agreement, the terms and conditions of this Agreement shall prevail.

 

(b) Severability.  In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in
any respect, this invalidity, illegality or unenforceability shall not affect any other provision of this Agreement and a valid, legal and enforceable substitute provision shall be agreed upon by the parties and become a part of the contract in lieu of the invalid, illegal or unenforceable provision, or, in the event a valid, legal and enforceable substitute provision cannot be crafted, this Agreement shall be construed as if the invalid, illegal or unenforceable provision had never been contained herein.

 

(c) Governing Law; Consent to Personal Jurisdiction.  The parties agree that the interpretation or construction of this Agreement, and the rights and liabilities
of the parties, shall be determined in accordance with substantive laws of the State of Florida, without regard to its choice of law principles.  The parties hereby consent to personal jurisdiction in the United States District Court for the Southern District of Florida, West Palm Beach Division; provided, however, that the parties agree that any and all disputes hereunder shall be litigated in the United States District Court for the Southern District of Florida, to the extent such court has jurisdiction
over such dispute.

 

(d) Captions.  The captions used in this Agreement are for convenience only and shall not limit, enlarge or be deemed to interpret the provisions of the Agreement.  All
personal pronouns used whether in the masculine, feminine or neuter gender, shall include all other genders.  The singular shall include the plural and the plural shall include the singular unless the context shall indicate or specifically provide to the contrary.

 

[Signatures on following page]

 

 

10

 

 

IN WITNESS WHEREOF, Buyer and Seller have executed this Agreement as of the date first above written.

	
SELLER:

GINN-LA WILDERNESS LTD., LLLP, a Georgia limited liability limited partnership

 
	
BUYER:

VR PRESERVE DEVELOPMENT, LLC, a Florida limited liability company

	
By: Ginn-Wilderness GP, LLC, a Georgia limited liability company, general partner

 

By:                                                            

Edward R. Ginn III, Manager

	
By:ValueRich, Inc., a Delaware Corporation, as managing member

 

By:                                                        

Joseph C. Visconti, Authorized Representative of managing member

SIGNATURE PAGE FOR DEVELOPMENT WORK AGREEMENT

  

11

  

EXHIBITS

 

	Exhibit A	
Legal Description of the Property

 

	Exhibit B	
Location of Social Club Improvements and Entry Work

 

	Exhibit C	
Permits

 

 

 

 

 

 

  

Tesoro Preserve Total Legal

 

EXHIBIT A

	
PARCEL 1:

Tract C, Tesoro Preserve Plat No. 2, according to the map or plat thereof as recorded in Plat Book 44, Page 15, Public Records of St. Lucie County, Florida.

	
TOGETHER WITH

 

	
PARCEL 2:

	
Lots 45, 78, 208, 252, 261, Tesoro Preserve Plat No. 2, according to the map or plat thereof as recorded in Plat Book 44, Page 15, Public Records of St. Lucie County, Florida.

and

	
Lot 29, Block 11, First Replat of River Point P.U.D., according to the map or plat thereof as recorded in Plat Book 41, Page 21, Public Records of St. Lucie County, Florida.

and

Lots 1, 2, 3, 4, 5, 12, 14, 16, 18, 20, 22, 23, and 40A, Tesoro Preserve Plat No. 3, according to the map or plat thereof as recorded in Plat Book  51, Page 1, Public Records of St. Lucie County, Florida.

	
TOGETHER WITH

	
PARCEL 3:

All of the First Replat of River Point P.U.D., according to the Plat thereof recorded in Plat Book 41, Page 21, 21a through 21o, Public Records of St. Lucie County, Florida, less and except:  Tract E; Tract H; Tract J; Tract I; Lots 9 through 19 of Block 1; Lots 1 through 22 of Block 2; Lots 1 through 8 of Block 3; Lots 1 through
30 of Block 4; Lots 1 through 24, Block 5; Lots 1 through 2 of Block 6; Lots 1 through 50 of Block 7; Lots 1 through 19 of Bock 8; Lot 7 of Block 10; Lot 41 of Block 11; Lot 27 of Block 12; Lots 1 through 13 of Block 13; Lots 1 through 30 of Block 14; Lots 1 through 19 of Block 15 and the following Water Management Easements; WME-1, WME-2, WME-2A, WME-2B, WME-2C, WME-3, WME-4, WME-6 and WME-23.

and

 

 

 

 

Tract E; Tract H; Tract I; Lots 9 through 19 of Block 1; Lots 1 through 22 of Block 2; Lots 1 through 8 of Block 3; Lots 1 through 30 of Block 4; Lots 1 through 24, Block 5; Lots 1 through 2 of Block 6; Lots 1 through 50 of Block 7; Lots 1 through 19 of Bock 8; Lot 7 of Block 10; Lots 1 through 13 of Block 13; Lots 1 through 30 of Block
14; Lots 1 through 19 of Block 15 and the following Water Management Easements; WME-1, WME-2, WME-2A, WME-2B, WME-2C, WME-3, WME-4, WME-6 and WME-23.

Less and Except the following:

Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26,27, 28, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, Block 11 and Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, Block 12,  First Replat of River Point P.U.D. according
to the plat thereof recorded in Plat Book 41, Page 21, 21a through 21o, Public Records of St. Lucie County, Florida.

Also less:

Lots 41, 42, 43, 44, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 79, 80, 81, 82, 83,84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121,
122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144, 145, 146, 147, 148, 149, 150, 151, 152, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183, 184, 185, 186, 187, 188, 189, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 200, 201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224,
225, 226, 227, 228, 229, 230, 231, 232, 234, 235, 236, 237, 238, 239, 240, 241, 242, 243, 244, 245, 246, 247, 248, 249, 250, 251, 253, 254, 255, 256, 257, 258, 259, 260, 262, 263, 264, 265, 266, 267, 268, 269, 270, 271, 272, 273, 274, 275, 276, 277, 278, 279, 280, 281, 282, 283, 284, 285, 286, 287, 288, 289, 290, 291, 292, 293, 294, 295, 296, Tesoro Preserve Plat No. 2, according to the Plat thereof as recorded in Plat Book 44, Page 15, Public Records of St. Lucie County, Florida.

 

Also less:

Lots 9, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, and 39, Tesoro Preserve Plat No. 1, according to the map or plat thereof as recorded in Plat Book 44, Page 17, Public Records of St. Lucie County, Florida.

Also less:

Lots 10, 11, 13, 15, 17, 19, 21, 40, Tesoro Preserve Plat NO. 3, according to the map or plat thereof as recorded in Plat Book 51, Page 1, Public Records of St. Lucie County, Florida.

Also less:

Lots 4, 5, 6, 14, 16, 17, 21, 24, 32, 33, 63, 74, Tesoro Preserve Plat No. 5, according to the map or plat thereof as recorded in Plat Book 54, Page 38, Public Records of St. Lucie County, Florida.

 

 

 

 

	
And Less :

Tract C, Tesoro Preserve Plat No. 2, according to the map or plat thereof as recorded in Plat Book 44, Page 15, Public Records of St. Lucie County, Florida.

Also Less:

	
Lots 45, 78, 208, 252, 261, Tesoro Preserve Plat No. 2, according to the map or plat thereof as recorded in Plat Book 44, Page 15, Public Records of St. Lucie County, Florida.

and

	
Lot 29, Block 11, First Replat of River Point P.U.D., according to the map or plat thereof as recorded in Plat Book 41, Page 21, Public Records of St. Lucie County, Florida.

and

Lots 1, 2, 3, 4, 5, 12, 14, 16, 18, 20, 22, 23, and 40A, Tesoro Preserve Plat No. 3, according to the map or plat thereof as recorded in Plat Book  51, Page 1, Public Records of St. Lucie County, Florida.

 

 

 

 

EXHIBIT C

Permits

SFWMD Permits:

	
1.  
	
SFWMD Application No. 040712-15 modifying Environmental Resource Permit No. 56-01506-P to allow the construction and operation of a surface water management system to serve a 201.03 acre portion of the Property known as Tesoro Preserve Parcels A, B, D, E and F.  Originally issued on August 10, 2005

	
2.  
	
SFWMD Application No. 020726-8 modifying Environmental Resource Permit No. 56-01506-P  to reduce size of lots, realignment of roads and reduction in the wetland impact within Pods, A, B, D-F of Tesoro Preserve Parcel A.  Originally issued on February 24, 2003

	
3.  
	
SFWMD Application No. 041028-2 modifying General Water Use Permit No. 56-02217-W to allow water use for landscaping turf on a 16.7 acre portion of the Property.  Originally issued on August 26, 2005

	
4.  
	
SFWMD Application No. 080211-14 modifying General Water Use Permit No. 56-02217-W to allow water use for general landscape irrigation.  Originally issued on March 4, 2008

	
5.  
	
SFWMD Application No. 080325-13 modifying General Water Use Permit No. 56-02217-W to allow water use for general landscape irrigation.  Originally issued on May 1, 2008

Army Corps of Engineers Permits:

	
1.  
	
Department of the Army permit number 1944047548 (IP-TKW) authorizing the construction of a causeway to access an upland spoil island. Originally issued on December 19, 1996

	
2.  
	
Department of the Army permit number 194404754 (IP-SS)  authorizing the placement of fill material over 1.99 cares of wetlands for the construction of a causeway to access an upland spoil island. Originally issued on January 14, 1997

	
3.  
	
Department of the Army permit number 194404754 (IP-TKW) modifying 1944047548 (IP-TKW), authorizing the construction of a causeway to access an upland spoil island. Originally issued on December 4, 2003

	
4.  
	
Department of the Army permit number 194404754 (IPJBH) authorizing the impact of 3.96 acres of law quality wetlands and 2.74 acres of “waters of the United States” in connection with the development of Project and requiring onsite mitigation of 26.89 acres of wetland enhancement.  Originally issued on September 30, 2005

 

 

 

16mm01-2210_8ke101.htm

    EXHIBIT
10.1

    
 

    
      2010
AMENDED AND RESTATED

      EMPLOYMENT
AGREEMENT

       

      This
2010 AMENDED AND
RESTATED EMPLOYMENT
AGREEMENT (“Agreement”) is dated as of the
1st
day of January 2010 (the “Effective Date”), by and
between WILLIS NORTH AMERICA,
INC. (“Willis
US”) and JOSEPH J.
PLUMERI (“Executive”).

       

      WHEREAS, Executive is willing
to serve as Executive Chairman of Willis US, Chairman and Chief Executive
Officer of Willis Group Holdings plc, an Irish limited company (“Willis Holdings”) and Senior
Managing Director of Willis Group Limited (f/k/a Willis Group plc, “Willis UK”, and collectively
with Willis Holdings and Willis US, the “Willis Group”);

       

      WHEREAS, Willis Group desires
to retain Executive in those capacities upon the terms and conditions
hereinafter set forth;

       

      WHEREAS, Executive’s current
employment agreement (the “Expiring Agreement”) is
scheduled to terminate on the date of Willis Holdings’ shareholders meeting in
2011 (the “Old Expiration
Date”); and

       

      WHEREAS, the parties desire to
amend and restate Executive’s Expiring Agreement to, among other things, extend
the term through July 7, 2013, to preserve certain provisions of the Expiring
Agreement through the Old Expiration Date and to modify certain other
provisions.

       

      NOW, THEREFORE, in
consideration of the mutual covenants and promises contained herein and for
other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

       

      1.   Employment, Compensation and
Benefits.  During the period of this Agreement, Willis US
agrees to employ Executive and to pay the remuneration, and to provide the
benefits, described below.

       

      (a) Title and Duties.

       

      (i) During
the Term (as defined in Section 2 herein),
Executive shall be employed as Executive Chairman of Willis US, and shall hold
the offices of Chairman and Chief Executive Officer of Willis Holdings and
Senior Managing Director of Willis UK. During the Term, Executive shall also be
a member of the Board of Directors of Willis Holdings (the “Board”) (or such other most
senior governing board of Willis Holdings) and Executive Committee of Willis
Holdings and Willis UK. Executive shall also be appointed to such senior
director and executive positions, as the Board, after consultation with
Executive, deems appropriate, of each subsidiary of Willis
Holdings.

       

      (ii) Executive
shall have the customary duties, responsibilities and authority of a chairman
and a chief executive officer of a corporation of a similar size and status as
the Willis Group.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (iii) Executive
shall report directly to the Board.

       

      (iv) Executive’s
principal office shall be located at an office of Willis US in Manhattan, New
York City, New York.

       

      (b) Remuneration.

       

      (i) Base
Salary.  Executive’s base salary shall be at the rate of one
million dollars ($1,000,000) per annum, payable in the United States in
accordance with Willis U.S.’s normal payroll practices. The amount of
Executive’s Base Salary shall be reviewed annually and may, at the discretion of
the Board, be adjusted (but never below the then Base Salary). Any such
increased amount shall constitute “Base Salary” hereunder. All
dollar amounts referred to in this Agreement are in U.S. dollars and all amounts
are to be paid in the United States.

       

      (ii) Bonus.  So
long as Executive remains employed hereunder, Executive shall be eligible for an
annual bonus from Willis US for each fiscal year ending during the Term (the
“Fiscal Year”) pursuant
to Willis Holding’s annual bonus plan (currently The Willis Group Senior
Management Incentive Plan). So long as the applicable performance criteria under
the annual bonus plan for his position are satisfied, bonuses shall be paid to
Executive as set forth on Exhibit A hereto.
Except as otherwise provided on Exhibit A hereto, all
bonuses shall he paid in the calendar year next following the end of the Fiscal
Year in which it is measured.

       

      (iii) Deferral of Receipt of
Remuneration.  Executive shall have the right to defer, on an
annual basis, receipt of his Base Salary and, to the extent permitted by the
Deferred Compensation Plan, his annual bonus to the full extent provided and
otherwise in accordance with the terms of Willis US’s deferred compensation plan
in which Executive participates (or any successor plan thereto), as in effect
from time to time (the “Deferred Compensation Plan”),
and Section 409A of the Internal Revenue Code and the rules and regulations
promulgated thereunder (“Section 409A”).

       

      (c) Benefits.

       

      (i) Willis US Plans
Generally.  Except as otherwise provided herein, Willis US
shall provide, or shall cause to be provided, Executive with those benefits,
including medical, life insurance, disability, pension and other benefit
programs, plans and practices in which similarly situated full-time executive
employees of Willis US and its subsidiaries (commensurate with Executive’s
position with Willis US) are entitled (under the applicable benefit plans as in
effect as of the Effective Date or as may be amended from time to time), as set
forth in the Willis US staff handbook as well as fringe benefits commensurate
with the Executive’s position (each a “Benefit Plan”).

       

      (ii) Deferred Compensation
Benefit.  Executive shall continue to be entitled to an annual
deferred compensation credit of eight hundred thousand dollars ($800,000) as set
forth in Exhibit
E hereto.

       

      (d) Reimbursement for
Expenses.  During the Term, Willis US shall reimburse Executive
for all reasonable expenses incurred by Executive in performing Executive’s
duties for 

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Willis
Group, in accordance with the policies of Willis US, as in effect from time to
time and consistent with Executive’s positions.

       

      (e) Indemnification.  Willis
US shall cause Willis Group to provide Executive with Directors and Officers and
Errors and Omissions insurance in amounts reasonably acceptable to
Executive.  Willis US agrees, and shall cause Willis Holdings and
their respective subsidiaries to agree, to indemnify and defend Executive, to
the fullest extent permitted by applicable law and by their respective Articles
of Incorporation and by-laws (or the applicable equivalent governing documents
with respect to any and all claims which arise from or relate to Executive’s
duties as an officer, member of the Board (and any other board of directors (or
equivalent governing entity) of Willis UK, Willis US or any of their
affiliates), employee of Willis US, and duties performed in connection with the
offices of Willis UK and Willis Holdings held by Executive, or as a fiduciary of
any employee benefit plan or a similar capacity with any other entity for which
Executive is performing services at Willis Group’s request, whether performed
heretofore or hereafter.

       

      (f) Equity
Participation.

       

      (i) General.  All
equity awards granted to Executive prior to the Effective Date shall continue in
accordance with their terms, including any applicable provisions in the Expiring
Agreement.

       

      (ii) Registration
Rights.  Executive shall be entitled to registration rights in
accordance with the 2004 Registration Rights Agreement.

       

      (iii) Change of
Control.  The definition of Change of Control applicable to any
equity grant made to the Executive or in any equity or employee benefit plan as
it applies to Executive shall be the same as the definition of Change of Control
set forth herein, provided that this subsection (iii) shall not apply to any
already outstanding equity grant as of May 25, 2004 to the extent application of
it would result in an adverse accounting charge to Willis Group because of a
change in the definition of Change in Control. For avoidance of a doubt, the
definition of Change of Control set forth herein shall apply to all equity
grants made after the date hereof, unless expressly waived by the parties with
regard to the applicable equity plan or in the applicable equity award
agreement.

       

      (iv) 2010 Equity
Grants.  Executive shall be entitled to a grant of restricted
stock units in 2010 as provided in Exhibit B hereto (the
“2010
Grant”).

       

      (v) Future Equity
Grants.  It is the expectation and intent of the compensation
committee of the Board (the “Compensation Committee”) to
award Executive in 2011 and 2012 equity grants each with a value equal to that
of the 2010 grant and in a form and with provisions (including as to
acceleration of vesting upon a termination of service or Change of Control),
similar to that of the 2010 Grant, with a recognition, however, that a portion
of such grants may need to be granted in stock options or cash derivative
securities because of plan limitations on available shares for restricted stock
units and further subject to the Compensation Committee’s good faith evaluation
of changes in circumstances of Willis Holdings, the performance of Willis
Holdings and the performance of Executive that justifies an alternative

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      vehicle or amount of
grant. All grants will fully vest by July 7, 2013 and, if options or stock
appreciation rights are utilized, the Executive will have at least two (2) years
after his separation from service for any reason (other than Cause) to exercise
such options or stock appreciation rights.

       

      (g) Executive
shall be entitled to vacation time and holidays as are provided in general to
executive employees of Willis US but shall, in any event, be entitled to no less
than four (4) weeks of vacation per year. Any unused days accrued in a
particular year may not be carried over to a subsequent year.

       

      2.   Term and
Termination.

       

      (a) Term.  This
Agreement shall become effective as of the Effective Date. Unless terminated
earlier pursuant to Section 2(b), below,
Executive’s employment hereunder shall remain in effect until July 7, 2013 (the
“Term”).

       

      (b) Termination.  The
Term shall terminate on the earlier to occur of (i) the expiration of the Term
and (ii) the date upon which Executive’s employment is terminated by Willis US
or Executive. Subject to the conditions and procedures of Section 3, below,
either party may terminate the Term and Executive’s employment at any time by
providing ninety (90) days’ prior written notice to the other party of the
termination of Executive’s employment.  A termination by Willis US
shall be deemed a termination by Willis US and all other members of the Willis
Group and their respective subsidiaries.

       

      3.    Effect of Certain
Terminations.

       

      (a) Termination without Cause by Willis
US or Resignation with Good Reason by Executive.  If at any
time during the Term, Willis US terminates Executive without Cause (as defined
below) or the Executive terminates his employment with the Willis Group for Good
Reason (as defined below), Executive shall be entitled to the
following:

       

      (i) Subject
to Section 7(k)
hereof, within thirty (30) days following such termination of employment, Willis
US shall pay to Executive as severance four million dollars ($4,000,000) in a
lump sum (the “Severance
Benefit”), and if such termination of employment occurs either (I) within
six (6) months prior to a Change in Control and such termination of employment
(or in a termination for Good Reason the Good Reason event in which the
termination of employment is based) is in contemplation of, in anticipation of,
or otherwise in connection of, such Change in Control or (II) on or within
twenty-four (24) months following the occurrence of a Change in Control, then,
in addition to the Severance Benefit, Willis US (or its applicable successor)
shall pay Executive an additional severance payment within thirty (30) days
following the six (6) month anniversary of such termination of employment in a
lump sum amount equal to the difference between (x) an amount equal to two (2)
times the sum of (A) Executive’s Base Salary and (B) Target Annual Bonus during
the year of termination and (y) the Severance Benefit.

       

      (ii)           Willis
US shall provide, or shall cause to be provided, Executive with his (x) Accrued
Amounts (as defined below) and (y) his Accrued Rights (as defined below);
provided, however, that any Deferred Compensation Benefit that would otherwise
have been 

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      credited to Executive’s
Deferral Account pursuant to Section
1(c)(ii) above if Executive had remained employed by Willis US hereunder
for the balance of the Term shall instead be credited in full to the Deferral
Account effective as of the date of such termination, and all Deferred
Compensation Benefits then credited to the Deferral Account shall otherwise be
paid to Executive pursuant to and in accordance with the provisions of the
Deferred Compensation Plan and in accordance with the provisions of Section
409A, as applicable.

       

      (b) Other Terminations. In the
case of any other termination not covered by Section 3(a) alone,
Executive shall only be entitled to his Accrued Amounts and Accrued Rights;
provided, however, that after the occurrence of a Change in Control, if
Executive terminates his employment without Good Reason, Executive’s Deferred
Compensation Benefits shall be credited and payable in the same manner and
pursuant to the same terms as set forth in Section 3(a)(ii)
above.

       

      (c) No Mitigation; No
Offset.  The amounts due under Section 3(a) shall be
paid without any obligation of mitigation or offset for future earnings or other
amounts, and shall be paid without setoff, counterclaims or defense. Executive
shall not be eligible for any amounts of a similar nature that would be payable
to Executive pursuant to other severance plans of the Willis Group.

       

      (d) Definitions.  For
purposes of this Agreement, the capitalized terms used above shall have the
following meanings:

       

      (i) “Accrued Amounts” shall mean
(x) all accrued but unpaid Base Salary and vacation pay, to be paid within
thirty (30) days after termination; (y) any bonus due as a result of actual
performance but unpaid for any completed Fiscal Year, to be paid in the calendar
year of such termination when bonuses are paid to other senior level executives
in respect to such Fiscal Year; and (z) in respect of the Fiscal Year in which
the termination occurs, payment of an amount, (the “Prorated Bonus”) equal to a
pro rated portion of the actual annual bonus earned based on performance during
the Fiscal Year in which the termination occurs based on actual results, which
bonus shall be paid to Executive in the calendar year next following the
calendar year of termination and at the same time as said payment would be made
if Executive was still employed by the Willis US; provided, however, that upon a
termination of Executive’s employment for Cause or by Executive without Good
Reason (other than as a result of death, Disability, Mutual Retirement or upon
or following the expiration of the Term), “Accrued Amounts” shall not
include a Prorated Bonus.

       

      (ii) “Accrued Rights” shall mean any
amounts or benefits due to Executive under any benefit or equity plan or program
(other than a severance plan), and Executive’s rights under Sections 1(c), 1(d), 1(e), 4 and 7(k)(v) hereof,
payable in accordance with the terms of such plan or program.

       

      (iii) “Cause” shall mean (A)
Executive’s conviction of, or pleading nolo contendere to, a
misdemeanor involving sexual misconduct or to a felony (other than a traffic
infraction not involving actual imprisonment), (B) Executive’s willful and
continuous misconduct with regard to his material duties and responsibilities
which causes demonstrable harm of a material nature (C) Executive’s serious or
persistent breach of Executive’s material 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

        obligations under this Agreement (including any
repeated failure to abide by the legal, written directives presented to him by
the Board, which directives are not in violation of Section
1(a)(ii) hereof) or (D) gross negligence (other then as a result of
physical or mental impairment) with regard to his duties; provided, that, in the
case of (B), (C) and (D),
above, such misconduct, breach or negligence was not resolved or cured within
fifteen (15) days following Willis US’s written notice to Executive of Willis
US’s intention to terminate Executive’s employment for Cause as a result of such
circumstances, which notice (pursuant to Section
2(b)) describes such circumstances with sufficient particularity to give
Executive a reasonable opportunity to resolve or cure any such misconduct,
breach or negligence. For purposes of this definition, an act (or omission)
shall not be deemed “willful”, if, in the good faith belief of Executive, such
act (or omission) was in the best interests of Willis Group (or any of their
respective subsidiaries), and such belief was reasonable.

         

      

      (iv) “Change of Control” means,
other than in connection with the establishment of Willis Holdings as the parent
company as of January 1, 2010, (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities
and Exchange Commission thereunder as in effect on the date hereof), of equity
interests representing more than thirty percent (30%) of the aggregate ordinary
voting power represented by the issued and outstanding equity interests of
Willis Holdings; (b) occupation of a majority of the seats (other than vacant
seats) on the Board by Persons who were neither (i) nominated by the board of
directors of Willis Holdings nor (ii) appointed by directors so nominated;
provided a Person shall not be deemed so nominated or appointed if such
nomination or appointment is the result of a proxy contest or a threatened proxy
contest; (c) the failure of Willis Holdings to own, directly or indirectly,
at least fifty percent (50%) of the aggregate ordinary voting power represented
by the issued and outstanding equity interests of Willis US; (d) a merger,
consolidation or other corporate transaction of Willis Holdings (a “Transaction”) such that the
shareholders of Willis Holdings immediately prior to such Transaction do not own
more than fifty percent (50%) of the aggregate ordinary voting power of the
surviving entity (or its parent) immediately after such Transaction in
approximately the same proportion to each other as immediately prior to the
Transaction; (e) the sale of all or substantially all of the assets of Willis
Holdings or (f) approval by the shareholders of Willis Holdings of a plan of
liquidation or dissolution of Willis Holdings; provided, that, to the extent
necessary to comply with Section 409A with regard to the making of a
distribution, “Change of
Control” shall be limited to the occurrence of a “change in ownership,”
“change in effective control” or “change in the ownership of a substantial
portion of the assets” of Willis Holdings, as such terms are described in
Treasury Regulation Section 1.409A-3(i)(5).

       

      (v) “Good Reason” shall mean
Executive terminates his employment as a result of (A) any diminution of his
titles, positions or status, without Executive’s written consent thereof, (B)
any material diminution of his duties, responsibilities or authority, or the
assignment to him of any duties materially inconsistent with his positions,
without Executive’s written consent thereof, (C) any relocation of his principal
office from New York, New York, without Executive’s written consent thereof, (D)
any material breach of this Agreement by Willis US, or (E) the Board repeatedly
overrides, supersedes or disregards reasonable decisions by Executive or
recommendations made by Executive to the Board, such that the Board materially
interferes with Executive’s ability to effectively function as the Executive
Chairman and Chief Executive 

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      Officer, or the Board
otherwise takes actions that constructively represent a lack of confidence in
Executive’s ability to perform his duties and responsibilities; provided, that
in all cases Executive must provide written notice pursuant to Section
7(c) below within ninety (90) days following the occurrence of such
action or breach constituting Good Reason; provided further, that, in all cases
(other than (E) above), Willis US shall have fifteen (15) days following receipt
of such notice to resolve or cure such action or breach constituting Good
Reason.

       

      (vi) “Mutual Retirement” shall mean
a Retirement with the mutual agreement of the Executive and the Board with a
successor chief executive officer of Willis Holdings approved by both in
writing.

       

      (vii) “Person” shall mean any natural
person, sole proprietorship, general partnership, limited partnership, limited
liability company, joint venture, trust, unincorporated organization,
association, corporation, governmental authority, or any other organization,
irrespective of whether it is a legal entity and includes any successor (by
merger or otherwise) of such entity.

       

      (viii) “Retirement” shall mean
Executive’s voluntary termination of employment with the Willis Group without
Good Reason. To the extent that any equity grant or Benefit Plan provides for
additional benefits or rights upon a "retirement", Executive shall deem to
qualify upon any termination (other than for Cause) and to the extent such
benefits or rights are greater as a "retiree" than otherwise provided based on
the other classification of such termination, Executive shall receive such
greater benefits or rights.

       

      (e)   Disability
Termination.  Willis US may terminate Executive’s employment as
a result of a “Disability” if Executive, as a
result of mental or physical incapacity, has been unable to perform his material
duties for six (6) consecutive months (or 180 days in any 360-day period). Such
termination shall be only permitted while Executive is still so disabled and
shall be effective on thirty (30) days written notice to Executive, provided
that such termination shall not be effective if Executive returns to full time
performance of his material duties within such thirty (30) day period and
continues in such full time capacity (which full time status shall be deemed to
continue even in the event that vacation or intermittent and de minimis sick leave is
taken) for six (6) consecutive months thereafter. For the avoidance of doubt, in
the event that Executive does return to full-time performance but does not
continue in such full-time capacity for six (6) consecutive months thereafter,
the termination shall be deemed effective on thirty (30) days written notice
following the most recent date that Executive fails to continue in such
full-time capacity.

       

      Notwithstanding
the foregoing, in the event that as a result of absence because of mental or
physical incapacity Executive incurs a “separation from service” within the
meaning of such term under Section 409A, Executive shall on such date
automatically be terminated from employment due to Disability.

       

      4.   Excise
Tax.  Executive shall not be entitled to any gross up of any
excise tax in respect of Section 4999 of the Internal Revenue Code, except that
Executive shall be entitled to a Gross-Up Payment (as such term is defined in
the Expiring Agreement) if the change in ownership or control (within the
meaning of Section 280G of the Code) giving rise to the related 

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

         

        excise tax
occurs prior to the expiration of the term of the Expiring Agreement. Such
Gross-Up Payment shall be subject to the terms and conditions of the Expiring
Agreement (the applicable provisions of which are attached hereto as Exhibit
C).

      

       

      5.   Ownership of
Business.  All business activity participated in by Executive
as an employee of Willis US, and Executive’s execution of his duties and
responsibilities to the Willis Group and their related entities as set forth in
Section 1(a),
above (the “Business
Activity”) shall be conducted solely on behalf of Willis
Group.  Executive shall have no right to share in any commission or
fee resulting from such Business Activity, other than the compensation referred
to in Section 1(b),
above, and any monies due to any member of the Willis Group or their related
entities as a result of Business Activity which may be collected by Executive on
behalf of the Willis Group or their related entities shall be promptly paid over
to of the Willis Group or their related entities, as applicable.

       

      6.   Confidential Information;
Noncompetition and Nonsolicitation.  In consideration of Willis
US entering into this Agreement with Executive, Executive hereby:

       

      (a)   acknowledges
that the continued success of Willis Group depends upon the use and protection
of proprietary information.  Executive further acknowledges that the
proprietary information obtained by him during the course of his employment with
Willis Group concerning the business or affairs of Willis Group and its
subsidiaries is the property of Willis Group (“Confidential
Information”).  Therefore, Executive agrees that during the
Term and thereafter he will not disclose to any unauthorized person or use for
his own account any Confidential Information, whether or not such information is
developed by him, without the Board’s written consent, unless and to the extent
that the information (i) is disclosed by Executive in the good faith performance
of his duties hereunder, (ii) becomes generally known to the public other than
as a result of Executive’s acts or omissions to act in violation of this Section 6 or (iii) is
required to be disclosed pursuant to applicable law or court
order.  Executive shall deliver to Willis Group upon his termination
of employment all memoranda, notes, plans, records, reports, computer tapes,
printouts and software and other documents and data (and copies thereof)
embodying or relating to the Confidential Information or the business of Willis
Group; provided, that, Executive may keep his address book and similar personal
property;

       

      (b)   agrees
that while he is employed by Willis US and for a period of one (1) year
following termination of Executive’s employment with Willis US, on behalf of an
entity, which, aggregated with its affiliates, is primarily in the insurance
brokerage business, directly or indirectly solicit, accept, or perform, other
than on Willis Group’s behalf, insurance brokerage, insurance agency, risk
management, claims administration, consulting or other business performed by the
Willis Group from or with respect to (i) clients of Willis Group with whom
Executive had business contact or provided services to, either alone or with
others, while employed by Willis US and, further provided, such clients were
clients of Willis Group either on the date of termination of Executive’s
employment with Willis US or within twelve (12) months prior to such termination
and (ii) active prospective clients of Willis Group with whom Executive had
business contacts regarding the business of Willis Group within six (6) months
prior to termination of Executive’s employment with Willis US;

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (c)   agrees
that while Executive is employed by Willis US and for a period of one (1) year
following termination of Executive’s employment with Willis US, directly or
indirectly, other than in performing his duties for Willis Group, (i) solicit
any employee of Willis Group to work for Executive or any third party, including
any competitor (whether an individual or a competing company) of Willis Group or
(ii) induce any such employee of Willis Group to leave the employ of Willis
Group, provided the foregoing shall not apply to Executive’s personal assistants
and personal non-executive staff, shall not be violated by general advertising
not specifically targeted at the Willis Group’s employees and shall not prevent
Executive from serving as a reference for any given individual; and

       

      (d)   agrees
that while Executive is employed by Willis US and for a period of one (1) year
following termination of Executive’s employment with Willis US, provide services
to Aon Corporation or Marsh, Inc. (or their subsidiaries) as an employee,
consultant or director, provided that the foregoing shall not prevent Executive
from providing such services to a conglomerate that hereafter acquires such
entities that is not primarily in the insurance brokerage business and services
to such entities by Executive is not the primary focus of Executive’s
position.

       

      7.   Miscellaneous.

       

      (a)   Integrated
Agreement.  Except as otherwise provided in this Section 7, this
Agreement (including the Exhibits attached hereto), together with the letter
agreement dated as of March 26, 2001 (the “Side Letter”), which shall
remain in full force and effect, embodies the complete understanding and
agreement of the parties hereto relating to Executive’s employment; provided,
however, that, all equity grants (as modified herein) shall continue in full
force and effect. This Agreement may not be amended or terminated orally, but
only by a writing executed by the parties hereto.

       

      (b)   Severability; Effect of Certain
Securities Laws and Other Restrictions.  If any term of this
Agreement is rendered, declared or held to be invalid or unenforceable by any
judicial, legislative or administrative action, the remaining provisions hereof
shall remain in full force and effect, shall in no way be affected, impaired or
invalidated, and shall be enforced to the full extent permitted by law and
equity.  In addition, notwithstanding anything set forth in this
Agreement to the contrary, in the event and to the extent that any term of this
Agreement (or benefit provided hereunder) is or becomes prohibited by applicable
securities laws (and any rules or regulations promulgated thereunder) or rules
or regulations of any exchange on which stock of Willis Holdings is traded, such
term or benefit shall be suspended unless and until such term or benefit ceases
to be prohibited by such laws, rules or regulations, and Executive hereby
acknowledges and agrees that any such suspension will not constitute a breach of
this Agreement by Willis US.

       

      (c)   Notices.  Any
notices given pursuant to this Agreement shall be sent by certified mail or a
nationally recognized courier service, with proof of delivery, to the addresses
set forth below (or, in the event of an address change by either party, to the
then-current address of the party, as specified in any written change-of-address
notice properly furnished under this Section
7(c)).

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      If to
Willis US, then to:

       

      Willis
North America, Inc.

      One World
Financial Center

      New York,
New York 10281

      Attention:
General Counsel

       

      If to
Executive:

       

      To
Executive’s most recent address set forth in the personnel records of Willis
US

       

      With a
copy to:

       

      Proskauer
Rose LLP

      1585
Broadway

      New York,
New York 10036

      Attention:
Michael S. Sirkin, Esq.

       

      (d)   Governing Law;
Remedies.  The substantive laws of New York shall govern this
Agreement, without giving effect to its conflicts of law principles. Any
disputes or issues arising out of or relating to any equity in Willis Holdings
that Executive has received or may become entitled to receive shall also be
governed by the laws of the State of New York or, with respect to any equity
awards granted on Willis Holdings stock (except to the extent it involves
interpretation under this Agreement), the laws of Bermuda (provided that the
laws of Ireland shall govern equity grants made after December 31, 2009),
without regard to conflicts of law principles in any event. Executive
acknowledges that there is no adequate remedy at law for any breach of the
provisions of Section
6 of this Agreement and that, in addition to any other remedies to which
it may otherwise be entitled as a matter of law, Willis US shall be entitled to
injunctive relief in the event of any such breach.

       

      (e)   Waiver.  The waiver
by any party of any breach of this Agreement shall not operate or be construed
as a waiver of that party’s rights upon any subsequent or different
breach.

       

      (f)   Successors and Assigns; Third-Party
Beneficiaries.  This Agreement shall inure to the benefit of
and be binding upon and enforceable against the heirs, legal representatives and
assigns of Executive and the successors and permitted assigns of Willis US. Any
amounts due to Executive as of his death shall be paid to his designated
beneficiary, or if none, his estate. Willis Holdings and its direct and indirect
subsidiaries are intended third-party beneficiaries of all promises and
covenants made by Executive herein in favor of Willis US in Section 6 hereof. As
such, insofar as they are affected by any breach of this Agreement by Executive
of Section 6,
Willis Holdings and its direct and indirect subsidiaries may enforce Executive’s
covenants and promises herein to the same extent that Willis US has a right to
do so; provided, that, in enforcing such covenants and promises, Willis Holdings
and its direct and indirect subsidiaries shall be bound by the terms of this
Agreement (including but not limited to Section 7(i) below)
and any prior determinations or judgments regarding this Agreement to the same
extent as Willis US. Willis US may not assign this Agreement or its rights
hereunder 

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

         

         

        except as
part of a sale of, and to the acquirer of, all or substantially all of the
securities and/or assets of Willis Holdings or Willis US and then only if the
assignee and the ultimate parent entity of the assignee (if applicable) promptly
deliver to Executive a written assumption of the obligations hereunder in a form
reasonably acceptable to Executive (or, to the extent otherwise required to bind
an entity other than an entity incorporated under the laws of the United States,
the equivalent documentation therefor).

      

       

      (g)   Counterparts.  This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

       

      (h)   Legal Fees.  Willis
US shall promptly pay Executive’s reasonable legal and financial advisory fees
incurred in connection with entering into this Agreement.

       

      (i)   Arbitration.  Any
dispute hereunder or with regard to any document or agreement referred to
herein, other than injunctive relief under Section 7(d) hereof,
shall be resolved by arbitration before the American Arbitration Association in
New York City, New York. The determination of the arbitrator shall be final and
binding on the parties hereto and may be entered in any court of competent
jurisdiction. In the event of any arbitration or other disputes with regard to
this Agreement or any other document or agreement referred to herein, Willis US
shall pay Executive’s legal fees and disbursements promptly upon presentation of
invoices thereof, subject to an obligation of Executive to repay such amounts if
an arbitrator finds Executive’s positions in such arbitration or dispute to have
been frivolous or made in bad faith. In the event of any arbitration or other
disputes with regard to this Agreement or any other document or agreement
referred to herein, such fees and costs shall be paid by Willis US prior to
final disposition and promptly as such fees are incurred and submitted to Willis
US for payment on a quarterly basis which submission shall be made within
forty-five (45) days after the end of such quarter, subject to an obligation of
Executive to repay such amounts if an arbitrator finds Executive’s positions in
such arbitration or dispute to have been frivolous or made in bad
faith.

       

      (j)   Jurisdiction.  Willis
US hereby consents to the jurisdiction of the federal and state courts in the
State of New York, irrevocably waives any objection it may now or hereafter have
to laying of the venue of any suit, action, or proceeding in connection with
this Agreement in any such court, and agrees that service upon it shall be
sufficient if made by registered mail, and agrees not to asset the defense of
forum
nonconveniens.

       

      (k)   Section 409A.

       

      (i) The
intent of the parties is that payments and benefits under this Agreement comply
with Section 409A and the regulations and guidance promulgated thereunder or be
exempt therefrom and, accordingly, to the maximum extent permitted, this
Agreement shall be interpreted to be in compliance therewith. If Executive
notifies Willis US (with specificity as to the reason therefor) that Executive
believes that any provision of this Agreement (or of any award of compensation,
including equity compensation or benefits) would cause Executive to incur any
additional tax or interest under Section 409A and Willis US concurs with such
belief or Willis US (without any obligation whatsoever to do so) independently
makes such determination, Willis US shall, after consulting with Executive,
reform such provision to attempt 

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

         

         

        to comply
with Section 409A through good faith modifications to the minimum extent
reasonably appropriate to conform with Section 409A. To the extent that any
provision hereof is modified in order to comply with Section 409A, such
modification shall be made in good faith and shall, to the maximum extent
reasonably possible, maintain the original intent and economic benefit to
Executive and Willis US of the applicable provision without violating the
provisions of Section 409A.

      

       

      (ii) A
termination of employment shall not be deemed to have occurred for purposes of
any provision of this Agreement providing for the payment of any amounts or
benefits subject to Section 409A upon or following a termination of employment
unless such termination is also a “separation from service” within the meaning
of Section 409A and, for purposes of any such provision of this Agreement,
references to a “termination,” “termination of employment” or like terms shall
mean “separation from service.” If Executive is deemed on the date of
termination to he a “specified employee” within the meaning of that term under
Section 409A(a)(2)(B), then with regard to any payment considered “deferred
compensation” under Section 409A (whether under this Agreement, any other plan,
program, payroll practice or any equity grant, including but not limited to all
restricted stock units granted to Executive on or after March 14, 2007) and is
due upon Executive’s separation from service, such payment shall not be made or
provided until the date which is the earlier of (A) the expiration of the six
(6) month period measured from the date of such “separation from service” of the
Executive, and (B) the date of Executive’s death (the “Delay Period”) and this
Agreement and each such plan, program, payroll practice or equity grant shall
hereby be deemed amended accordingly. Upon the expiration of the Delay Period,
all payments and benefits delayed pursuant to this Section 7(k)(ii)
(whether they would have otherwise been payable in a single sum or in
installments in the absence of such delay) shall be paid or reimbursed to
Executive in a lump sum with interest at the prime rate as published in the
Wall Street Journal on
the first business day after the Delay Period (provided that any payment
measured by a change in value that continues during the Delay Period shall not
be credited with interest for the Delay Period), and any remaining payments and
benefits due under this Agreement shall be paid or provided in accordance with
the normal payment dates specified for them herein.

       

      (iii) All
expenses or other reimbursements paid pursuant to Sections 1(e)
and 7(h) hereof
or otherwise that are taxable income to the Executive shall in no event be paid
later than the end of the calendar year next following the calendar year in
which Executive incurs such expense or pays such related tax. With regard to any
provision herein that provides for reimbursement of costs and expenses or
in-kind benefits, except as permitted by Section 409A, (i) the right to
reimbursement or in-kind benefits shall not be subject to liquidation or
exchange for another benefit, (ii) the amount of expenses eligible for
reimbursement, of in-kind benefits, provided during any taxable year shall not
affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other taxable year, provided that the foregoing clause (ii)
shall not be violated without regard to expenses reimbursed under any
arrangement covered by Internal Revenue Code Section 105(b) solely because such
expenses are subject to a limit related to the period the arrangement is in
effect and (iii) such payments shall be made on or before the last day of
Executive’s taxable year following the taxable year in which the expense
occurred. Any tax gross-up shall be made no later than the end of the calendar
year next following the calendar year in which the Executive remits the related
tax.  Any tax equalization payment, including such payment(s) provided
in the Side Letter, shall be paid to the Executive no later 

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

         

         

        than the
end of the second calendar year following the later of (y) the calendar year in
which the Executive’s US federal tax return (including extensions) is due and
(z) the calendar year in which the Executive’s foreign tax return is due (or the
due date for foreign tax payments if filing a tax return is not required), in
which the compensation to which such tax equalization payment relates is
reported.

      

       

      (iv) Whenever
a payment under this Agreement specifies a payment period with reference to a
number of days (e.g.,
“payment shall be made within thirty (30) days following the date of
termination”), the actual date of payment within the specified period shall be
within the sole discretion of Willis US.

       

      (v) Executive
shall not be entitled to any gross up of any tax in respect of Section 409A of
the Internal Revenue Code, except that Executive shall be entitled to a 409A
Gross-Up Payment (as such term is defined in the Expiring Agreement) if the
Section 409A Tax (as such term is defined in the Expiring Agreement) relates to
documentary noncompliance in any document entered into or operational
noncompliance relating to any event occurring prior to the expiration of the
term of the Expiring Agreement. Such 409A Gross-Up Payment shall be subject to
the terms and conditions of the Expiring Agreement (the applicable provisions of
which are attached hereto as Exhibit
D).

       

      [Signatures
on next page]

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the parties hereto have executed this Amended and Restated
Employment Agreement as of the date first above written.

       

       

      
      

       

      
        
          	 WILLIS
      NORTH AMERICA, INC.

        

         

        
          	 	 	 
	
                  By:

                	 /s/
      Adam Ciongoli	 
	
                  Name:

                	 Adam Ciongoli	 
	
                  Title:

                	 Executive Vice President and Secretary	 
	 	 	 
	 	 	 
	 	 	 
	
                  EXECUTIVE:

                	 
	 	 	 
	 	 	 
	
                    
      /s/  Joseph J. Plumeri

                	 
	Joseph
      J. Plumeri	 

        

      

       

       

      

        
          
             

          

          
            14

            
              

            

          

          
             

          

        

      EXHIBIT
A

       

      Annual
Bonus Schedule

       

      The
amount of the annual bonus earned by Executive shall be paid to Executive fifty
percent (50%) in cash and fifty percent (50%) in restricted stock units (“RSU’s”), provided that the
pro-rata annual bonus for fiscal year 2013 shall be paid fully in cash and
Willis US may elect to pay the annual bonus for any other fiscal year fully in
cash (with the same payment timing as if the payments were in RSUs). The form of
RSU’s shall be the same as the RSU bonus form used in 2007 for Executive and the
conversion from bonus value to number of RSU’s shall be the same as used for the
2007 RSU bonus grant. Notwithstanding the foregoing, all RSU’s shall vest no
later than the annual meeting of Willis Holdings in 2011 (provided that RSUs
granted in 2012 and 2013 for fiscal years 2011 and 2012, respectively, shall
instead vest no later than July 7, 2013), upon Executive’s earlier death,
Disability termination, termination without Cause, termination for Good Reason,
Mutual Retirement or upon a Change in Control, all as defined in Executive’s
Employment Agreement. Any distribution of the underlying shares with regard to
the bonus RSU’s shall be subject to Section 7(k) of the
Agreement and the last sentence of this paragraph, and shall be distributed at
the earlier of (x) (A) the annual meeting in 2011 for all RSUs other than those
granted in 2012 and 2013 for fiscal years 2011 and 2012, respectively or (B)
July 7, 2013 for such RSUs granted in 2012 and 2013 and (y) when Executive
incurs a “separation from service” as defined in Section 409A. Furthermore,
notwithstanding the foregoing, the parties may agree, to the extent permitted by
Section 409A, on a different allocation between cash and RSU’s or a different
timing of payment of the RSU’s at any time prior to six (6) months before the
end of a performance period or at such other time as permitted under Section
409A.

       

      Each
fiscal year the Compensation Committee shall establish, in good faith,
threshold, target and maximum performance goals. Maximum goals will be no
greater than one hundred ten percent (110%) of the target goal. If the target is
achieved the annual bonus shall be equal to at least three hundred seventy five
(375%) of Base Salary, if the threshold is achieved the annual bonus shall be
equal to at least two hundred fifty (250%) of Base Salary and, if the maximum is
achieved, the annual bonus shall be equal to at least five hundred percent
(500%) of Base Salary. The Compensation Committee will in good faith consider
and award bonuses if appropriate at lower levels of achievement and will also in
good faith consider and award higher bonuses in any case where
deserved.

       

      

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      EXHIBIT
B

       

      Restricted
Stock Award

       

      Willis Holdings shall grant to the
Executive restricted stock units with an aggregate fair market value on the date
of grant equal to $6,000,000 (the “2010 RSUs”).  The
2010 RSUs shall include the following terms:

       

      
        	
                1.  

              	
                2010
      performance criteria shall be consistent with the 2010 performance
      criteria for equity awards granted to other senior executives.1

              

      

       

      
        	
                2.  

              	
                Time
      vesting requirements shall be consistent with the time vesting schedule
      for other senior executives, except that all time vesting requirements
      shall not extend beyond July 7,
2013.

              

      

       

      
        	
                3.  

              	
                The
      2010 RSUs shall be settled, to the extent vested, upon the later of (i)
      sixty (60) days following the end of the performance measurement period
      and (ii) the date Executive incurs a separation from service with Willis
      Group, subject to Section 7(k) of
      the Agreement.

              

      

       

      
        	
                4.  

              	
                In
      the event Executive’s employment is terminated by the Company without
      Cause, by Executive for Good Reason, or due to death or disability, by
      Mutual Retirement or a termination of employment for any reason on or
      following July 7, 2013, any employment or service requirements shall be
      waived, but performance vesting criteria, if any, shall
      remain.

              

      

       

      
        	
                5.  

              	
                In
      the event of a Change in Control prior to the expiration of the
      performance measurement period, all performance vesting criteria shall be
      waived, but any employment or service requirements shall remain (subject
      to Paragraph 4 above).

              

      

       

      
        	
                6.  

              	
                In
      the event Executive’s employment is terminated (i) by the Company for
      Cause or (ii) by Executive without Good Reason prior to July 7, 2013, any
      unvested portion of the 2010 RSUs shall be
  forfeited.

              

      

       

      
        	
                7.  

              	
                All
      performance vesting criteria shall be adjusted for material corporate
      events in the same manner that awards containing similar performance
      vesting criteria granted to other senior executives are
      adjusted.

              

      

       

      
        	
                8.  

              	
                There
      will be no forfeiture provisions (other than the above forfeiture
      provisions for non-vesting) and no post-employment
      restrictions.

              

      

       

      
        	
                9.  

              	
                The
      definitions of “Cause”, “Change of Control”, “Good Reason”, “Disability”,
      “Retirement” and “Mutual Retirement” shall have the same meanings as set
      forth in the Agreement.

              

      

       

      

        

      

        
        1 Performance criteria for awards granted
in 2011 and 2012 are expected to have performance periods that do not exceed the
expiration date of the 2010 Amended and Restated Employment
Agreement.

         

      

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      EXHIBIT
C

       

      Section
4999 Excise Tax

       

      (a) In the
event it shall be determined that any payment, benefit or distribution (or
combination thereof) by Employer, any of Employer’s affiliates, one or more
trusts established by Employer for the benefit of its employees, or any other
person or entity, to or for the benefit of Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement, or
otherwise pursuant to or by reason of any other agreement, policy, plan, program
or arrangement, including without limitation any stock option, stock
appreciation right, phantom equity awards or similar right, or the lapse or
termination of any restriction on the vesting or exercisability of any of the
foregoing) (a “Payment”)
would he subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”) by reason of being
“contingent on a change in ownership or control” of Willis US or Willis
Holdings, within Section 280G of the Code (or any successor provision thereto)
or any interest or penalties are incurred by Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties,
hereinafter collectively referred to as the “Excise Tax”), then Executive
shall be entitled to receive an additional payment or payments (a “Gross-Up Payment”) in an
amount such that after payment by Executive of all taxes (including any interest
or penalties imposed with respect to such taxes), including, without limitation,
any income taxes (and any interest and penalties imposed with respect thereto)
and the Excise Tax imposed upon the Gross-Up Payment, Executive retains an
amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments.

       

      (b) Subject
to the provisions of clause (a) above, all determinations required to be made
under this Exhibit
C, including whether and when a Gross-Up Payment is required and the
amount of such Gross-Up Payment and the assumptions to be utilized in arriving
at such determination, shall be made by a nationally recognized certified public
accounting firm as may be designated by Employer, and reasonably satisfactory to
Executive (the “Accounting
Firm”), which shall provide detailed supporting calculations both to
Employer and Executive within fifteen (15) business days of Termination Date, or
such earlier time as is requested by Employer; provided that for purposes of
determining the amount of any Gross-Up Payment, it is recognized that Executive
tax at the actual tax rates applicable to individuals in which any such Gross-Up
Payment is to be made to pay state and taxes at the actual tax rates applicable
to individuals in the state or locality of Executive’s residence or place of
employment in the calendar year in which any such Gross-Up Payment is to be
made, net of the maximum reduction in federal income taxes that can be obtained
from deduction of such state and local taxes, taking into account limitations
applicable to individuals subject to federal income tax at the highest marginal
rates. All fees and expenses of the Accounting Firm shall be borne solely by
Employer. Any Gross-Up Payment, as determined pursuant to this Exhibit C, shall be
paid by Employer to Executive (or to the appropriate taxing authority on
Executive’s behalf) when due immediately prior to the date Executive is required
to make payment of any Excise Tax or other taxes. If the Accounting Firm
determines that no Excise Tax is payable by Executive, it shall so indicate to
Executive in writing, with an opinion 

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

         

         

        letter
that Executive has substantial authority not to report any Excise Tax on his/her
federal state, local income or other tax return. Any determination by the
Accounting Firm shall be binding upon Employer and the Executive absent a
contrary determination by the Internal Revenue Service or a court of competent
jurisdiction; provided, however, that no such determination shall eliminate or
reduce Employer’s obligation to provide any Gross-Up Payment that shall be due
as a result of such contrary determination. As a result of the uncertainty in
the application of Section 4999 of the Code (or any successor provision thereto)
and the possibility of similar uncertainty regarding state or local tax law at
the time of any determination by the Accounting Firm hereunder, it is possible
that the amount of the Gross-Up Payment determined by the Accounting Firm to be
due to (or on behalf of) Executive was lower than the amount actually due
(“Underpayment”). In the
event that Employer exhausts its remedies pursuant to clause (c) below and
Executive thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred
as promptly as possible and notify Employer and Executive of such calculations,
and any such Underpayment (including the Gross-Up Payment to Executive) shall be
promptly paid by Employer to or for the benefit of Executive within five (5)
business days after receipt of such determination and
calculations.

      

       

      (c) Executive
shall notify Employer in writing of any claim by the internal Revenue Service
that, if successful, would require the payment by Employer of any Gross-Up
Payment. Such notification shall be given as soon as practicable but no later
than ten (10) business days after Executive is informed in writing of such claim
and shall apprise Employer of the nature of such claim and the date on which
such claim is requested to be paid. The Executive shall not pay such claim prior
to the expiration of the thirty (30) day period following the date on which he
gives such notice to Employer (or such shorter period ending on the date that
any payment of taxes with respect to such claim is due). If Employer notifies
Executive in writing prior to the expiration of such period that it desires to
contest such claim, Executive shall (i) give Employer any information which is
in Executive’s possession reasonably requested by Employer relating to such
claim, (ii) take such action in connection with contesting such claim as
Employer shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by
an attorney reasonably selected by Employer, (iii) cooperate with Employer in
good faith in order to effectively contest such claim, and (iv) permit Employer
to participate in any proceedings relating to such claim; provided, however,
that Employer shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold Executive harmless, on an after-tax basis, for any
Excise Tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expenses.
Without limitation on the foregoing provisions of this clause (c), Employer
shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim and may, at its sole option, either direct Executive to pay the tax
claimed and sue for a refund or contest the claim in any 

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

         

         

         

        permissible
mariner, and Executive agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial jurisdiction and in
one or more appellate courts, as Employer shall determine; provided, further,
that if Employer directs Executive to pay such claim and sue for a refund,
Employer shall pay the amount of such claim to Executive, and shall indemnify
and hold Executive harmless, on an after-tax basis, from any Excise Tax of
income tax (including interest or penalties with respect thereto) imposed with
respect to such payment or with respect to any imputed income with respect to
such payment (including the applicable Gross-Up Payment); provided, further,
that if Executive is required to extend the statute of limitations to enable
Employer to contest such claim, Executive may limit this extension solely to
such contested amount. Employer’s control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority. The
reimbursement of expenses incurred by Executive due to a tax contest or
litigation addressing the existence or amount of an Excise Tax liability shall
be reimbursed promptly, but in no event be made later than the end of the
calendar year next following the calendar year in which the taxes that are
subject of the contest or litigation are remitted to the taxing authority (or if
no taxes are remitted as a result of such audit or litigation, the end of the
calendar year next following the calendar year in which the audit is completed
or there is a final and nonappealable settlement or other resolution of the
litigation). In addition, without extending the time of any obligation in this
Exhibit C, any
tax Gross-Up Payment shall be made no later than the end of the calendar year
next following the calendar year in which the Executive remits the related
tax.

      

       

      (d) If, after
the receipt by Executive of an amount paid by Employer pursuant to this Exhibit C, Executive
becomes entitled to receive any refund with respect to a Gross-Up Payment,
Executive shall (subject to Employer’s complying with the requirements of clause
(c) above) promptly pay to Employer the amount of such refund received (together
with any interest paid or credited thereon after taxes applicable thereto).
Notwithstanding the foregoing, in the event that the obligation to refund any
amount shall be a violation of the Sarbanes-Oxley Act of 2002, such obligation
to refund shall be null and void.

       

      (e) To the
extent that the applicable regulations under Code Section 280G permits a later
recalculation by the Employer, or requires a later recalculation, of whether the
Payments are subject to the Excise Tax, the provisions of this Exhibit C shall again
be applied based upon such recalculation.

       

      

       

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      EXHIBIT
D

       

      Section
409A Excise Tax

       

      (a)           The
Employer acknowledges and agrees that if any payment, award, benefit or
distribution (or any acceleration of any payment, award, benefit or
distribution) made or provided to Executive or for Executive’s benefit in
connection with this Agreement, or Executive’s employment with the Employer or
the termination thereof (the “Payments”) are determined to
be subject to the additional tax imposed by Section 409A, or any interest or
penalties with respect to such additional taxes (such additional taxes, together
with any such interest and penalties, are referred to collectively as the “Section 409A Tax”), then the
Executive will be entitled to receive an additional payment (a “409A Gross-Up Payment”) from
the Employer such that the net amount the Executive retains after paying any
applicable Section 409A Tax and any federal, state or Local income or FICA taxes
on such 409A Gross-Up Payment, shall be equal to the amount the Executive would
have received if the Section 409A Tax were not applicable to the
Payments.

       

      (b)           All
determinations of the Section 409A Tax and 409A Gross-Up Payment, if any, will
be made by tax counsel or other tax advisers designated by Executive and
approved by the Employer, which approval won’t be unreasonably withheld or
delayed. For purposes of determining the amount of the 409A Gross-Up Payment, if
any, Executive will be deemed to pay federal income tax at the actual marginal
rate of federal income taxation in the calendar year in which the total Payments
are made and state and local income taxes at the actual marginal rate of
taxation in the state and locality of Executive’s residence on the date the
total Payments are made, net of the maximum reduction in federal income taxes
that could be obtained from deduction of such state and local taxes. If the
Section 409A Tax is determined by the Internal Revenue Service, on audit or
otherwise, to exceed the amount taken into account hereunder in calculating the
409A Gross-Up Payment (including by reason of any payment the existence or
amount of which cannot be determined at the time of the 409A Gross-Up Payment),
the Employer shall make another 409A Gross-Up Payment in respect of such excess
(plus any interest, penalties or additions payable by Executive with respect to
such excess). The Employer and Executive shall each reasonably cooperate with
the other in connection with any administrative or judicial proceedings
concerning the existence or amount of liability for Section 409A Tax with
respect to the total Payments. The 409A Gross-Up Payments provided to Executive
shall be made no later than the tenth (10th) business day following the last
date the Payments are made but in all events within the time specified in Section 7(k)(iii) of
the Agreement.

       

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      EXHIBIT
E

       

      Deferred
Compensation Benefit

       

      (a)           Deferred Compensation
Benefit.  So long as Executive remains employed by Willis Group
hereunder, Executive shall be entitled to receive an annual deferred
compensation credit of eight hundred thousand dollars ($800,000) (the “Deferred Compensation
Benefit”) under the Deferred Compensation Plan per year. Each such
Deferred Compensation Benefit shall be credited to an account established for
Executive under the Deferred Compensation Plan (the “Deferral Account”) in four (4)
equal installments of two hundred thousand dollars ($200,000) each, on January
14, April 14, July 14 and October 14 of each year (or partial year) during the
Term. Notwithstanding anything set forth in this Agreement, or the Deferral
Account to the contrary, on each date that any Deferred Compensation Benefit is
credited to the Deferral Account, Executive shall be vested in, but not then
entitled to payment of, such credited amount. Subject to the foregoing, all
Deferred Compensation Benefits shall otherwise be treated under the Deferred
Compensation Plan in the same manner (including, without limitation, subject to
Section
3(a)(ii) of the Agreement) as any elective deferrals of Base Salary and
annual bonus amounts made by Executive under the Deferred Compensation Plan as
provided in Section
l(b)(iii) of the Agreement.

       

       

       

       

       

       

       

       

       

      21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]