Document:

FINAL
EXECUTION COPY

GUARANTOR
CONSENT AND RATIFICATION AND CONFIRMATION OF

FULL
GUARANTY

 

This
Guarantor Consent and Ratification and Confirmation of Guaranty Agreement
(this "Consent") is dated as of May 31, 2011 and is made by BLUEGREEN CORPORATION, a
Massachusetts corporation ("Guarantor").

 

1.        Guarantor
hereby acknowledges that:

 

(i)        Guarantor
executed and delivered to National Bank of Arizona ("Lender") that certain Full Guaranty dated as of September
30, 2010 (the "Guaranty Agreement"), pursuant to which Guarantor guaranteed the payment and performance
by Bluegreen/Big Cedar Vacations, LLC, a Delaware limited liability company ("Borrower") of all the obligations
owed by the Borrower to Lender under or pursuant to the Loan and Security Agreement dated as of September 30, 2010 (the "Loan
Agreement"), including, without limitation, the obligations of the Borrower to the Lender under the Loan.

 

(ii)        Lender
and Borrower are entering into that certain Amendment No. 1 to Loan and Security Agreement dated as of even date herewith
(the "Amendment No. 1") in order to amend the Loan Agreement in certain respects. The amendments made
pursuant to the Amendment No. 1 include, without limitation, a readvance by Lender of up to $5,000,000 of principal Loan
proceeds, which principal advance(s) is identified in the Amendment No. 1 and referred to in this Consent as Tranche B. Tranche
B constitutes a portion of the Loan and is evidenced by the Note.

 

2.        Guarantor
hereby agrees that the Obligations shall include, without limitation, the obligations of the Borrower under the Amendment No.
1, together with the other documents and instruments executed in connection therewith, as further amended from time to time, and
shall include the obligation of Borrower to repay Tranche B, together with interest thereon, in accordance with the Amendment
No. 1, the Loan Documents and the Note. All terms, conditions and provisions set forth in the Amendment No. 1 and in any
of the documents and instruments executed by the Borrower in connection therewith are hereby ratified, approved and confirmed.
The Guaranty Agreement shall continue undiminished and in full force and effect, notwithstanding the making of the foregoing amendments.

 

3.        Except
as set forth on Exhibit A attached hereto and incorporated herein by this reference, Guarantor hereby confirms and
restates as if made on the date hereof each of its representations and warranties contained in the Guaranty Agreement unless such
representations and warranties specifically related to a specific date in which case Guarantor hereby confirms and restates such
representation and warranty as of such specific date.

 

4.        Guarantor
represents and warrants that:

 

 

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4.1       This
Consent and the documents and instruments executed in connection herewith by Guarantor have been authorized by all necessary action
of Guarantor and, when executed by Guarantor, will be the legal, valid and binding obligations of the Guarantor, enforceable against
it in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights
generally and subject to general principles of equity (regardless of whether considered in a proceeding in equity or at law).

 

4.2       Guarantor's
execution, delivery and performance of this Consent do not and will not (i) violate Guarantor's Articles of Organization or any
law, rule, regulation or court order to which Guarantor is subject; (ii) conflict with or result in a breach of any agreement
or instrument to which Guarantor is a party or by which it or its properties are bound, or (iii) result in the creation or imposition
of any lien, security interest or encumbrance on any property of Guarantor, whether now owned or hereafter acquired, other than
liens in favor of Lender.

 

4.3       It
has had the opportunity to consult with counsel and with such other experts and advisors as it has deemed necessary in connection
with the negotiation, execution and delivery of this Consent. This Consent shall be construed without regard to any presumption
or rule requiring that it be construed against the party causing this Consent or any part hereof to be drafted.

 

5.        It
is further agreed that:

 

5.1       Section
2(o) of the Guaranty Agreement shall be amended and restated in its entirety as follows:

 

Guarantor
shall maintain a Tangible Net Worth of not less than $322,473,750 which covenant shall (A) be tested as of the last day of the
calendar quarter immediately prior to the Amendment No. 1 Closing and thereafter annually as of the end of each fiscal year of
Guarantor; and (B) increase annually, commencing April 1, 2012 and continuing on April 1 of each calendar year thereafter, by
25% of Guarantor's net income, including any net income (loss) attributable to the non-controlling interest, from the Guarantor's
prior fiscal year (the "Measuring Period"). Guarantor's Tangible Net Worth as of December 31, 2010, was
$429,965,000. For the avoidance of doubt, in no event shall the foregoing Tangible Net Worth covenant of Guarantor be decreased
in the event Guarantor incurs a net loss in any Measuring Period.

 

5.2       Guarantor
will execute and deliver such further instruments and do such things as in the judgment of Lender are reasonably necessary or
desirable to effect the intent of this Consent and to secure to Lender the benefits of all rights and remedies conferred upon
Lender by the terms of this Consent and any other documents executed by Guarantor in connection herewith.

 

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5.3       If
any provision of this Consent is held to be invalid, illegal or unenforceable under present or future laws effective while this
Consent is in effect (all of which invalidating laws are waived to the fullest extent possible), the legality, validity and enforceability
of the remaining provisions of this Consent shall not in any way be affected or impaired thereby. In lieu of each such illegal,
invalid or unenforceable provision, there shall be added automatically as part of this Consent, a provision that is legal, valid
and enforceable and as similar in terms to such illegal, invalid and unenforceable provision as may be possible.

 

5.4       THIS
CONSENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ARIZONA WITHOUT GIVING EFFECT TO ITS CONFLICT
OF LAWS PRINCIPLES.

 

5.5       This
Consent and the Guaranty Agreement represent the entire agreement between Guarantor and Lender with respect to the subject matter
hereof and supersede all prior oral and written agreements and representations between Lender and Guarantor concerning the subject
matter hereof. Delivery of an executed counterpart of this Consent electronically or by telecopy is equally effective as delivery
of a manually executed counterpart of this Consent. This Consent may be executed in any number of separate counterparts, each
of which when taken together will constitute one and the same instrument notwithstanding the fact that all parties have not signed
the same counterpart.

 

5.6       As
used in this Consent, the masculine, feminine or neuter gender, and the singular or plural number, shall each be deemed to include
the others whenever the context so allows.

 

6.        Unless
otherwise defined herein, all capitalized terms used herein shall have the same meaning as set forth in or as referenced in the
Guaranty Agreement.

 

[Signatures
on following page]

 

 

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SIGNATURE
PAGE FOR GUARANTOR CONSENT AND RATIFICATION AND 

CONFIRMATION OF FULL GUARANTY

 

	 	GUARANTOR:
	 	 
	 	BLUEGREEN
    CORPORATION, a Massachusetts corporation
	 	 
	 	 By:___________________________
	 	Name:
      Anthony M. Puleo
	 	Title:
    Senior Vice President, CFO and Treasurer
	 	 
	Acknowledged
    and accepted this ___ day of ______________, 2011:	 
	 	 
	LENDER:	 
	 	 
	NATIONAL
    BANK OF ARIZONA, a national banking association	 
	 	 
	 By:_____________________________________	 
	 Name:___________________________________	 
	 Title:____________________________________	 
	 	 
	 	 
	BORROWER:	 
	 	 
	BLUEGREEN/BIG
    CEDAR VACATIONS, LLC, a Delaware limited liability company	 
	 	 
	 By:_____________________________________	 
	Name:
      Anthony M. Puleo	 
	Title:
Vice President and Treasurer	 

 

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EXHIBIT
A

 

PENDING
LITIGATION AND OTHER PROCEEDINGS

 

In
2005, the State of Tennessee Audit Division (the “Division”) audited certain subsidiaries within Bluegreen
Resorts for the period from December 1, 2001 through December 31, 2004. On September 23, 2006, the Division issued a notice of
assessment for approximately $0.7 million of accommodations tax based on the use of Bluegreen Vacation Club accommodations by
Bluegreen Vacation Club members who became members through the purchase of non-Tennessee property. Bluegreen believes the attempt
to impose such a tax is contrary to Tennessee law, and has vigorously opposed, and intends to continue to vigorously oppose, such
assessment by the Division. An informal conference was held in December 2007 to discuss this matter with representatives of the
Division. No formal resolution of the issue was reached during the conference. On May 31, 2011, Bluegreen Vacations received a
letter dated May 25, 2011 from the State of Tennessee, Department of Revenue in response to the informal conference (the “Letter”).
The Letter states that the sales tax portion of the assessment is upheld. The Letter further states that it is in response to
the facts and circumstances that were presented and is not intended as a statement of policy of the State of Tennessee, Department
of Revenue. Bluegreen intends to vigorously contest the findings of the Letter. While the timeshare industry has been successful
in challenging the imposition of sales taxes on the use of accommodations by timeshare owners, there is no assurance that Bluegreen
will be successful in contesting the current assessment.

 

In
2006, an interpleader action was brought against Bluegreen Vacations seeking a determination as to whether Bluegreen Vacations,
as purchaser, or the plaintiffs, as seller, were entitled to the $1.4 million escrow deposit being maintained with the escrow
agent pursuant to a purchase and sale contract for real property located in Destin, Florida. Both Bluegreen Vacations and the
seller brought cross-claims for breach of the underlying purchase and sale contract. The seller’s complaint, as amended,
includes a fraud allegation, contends that Bluegreen failed to perform under the terms of the purchase and sale contract and claims
entitlement to the full amount in escrow. Bluegreen maintains that its decision not to close on the purchase of the property was
proper under the terms of the purchase and sale contract and therefore Bluegreen is entitled to a return of the full escrow deposit.
A trial date of May 31, 2011 has been set for this matter. Bluegreen believes the seller’s allegations are without merit
and intends to vigorously defend this claim.

 

The
Office of the Attorney General for the State of Florida (the "AGSF") has advised Bluegreen that it has accumulated a
number of consumer complaints since 2005 against Bluegreen and/or its affiliates related to its timeshare sales and marketing,
and has requested that Bluegreen respond on a collective basis as to how it had or would resolve the complaints. Bluegreen has
determined that many of these complaints were previously addressed and/or resolved by Bluegreen. The AGSF has also requested that
Bluegreen enter into a written agreement in which the parties establish a process and timeframe for determining consumer eligibility
for relief (including where applicable monetary restitution, if any). Bluegreen does not believe this matter will have a material
effect on Bluegreen's results of operations, financial condition or its sales and marketing activities in Florida.

 

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Bluegreen
Southwest One, L.P., (“Southwest”), a subsidiary of Bluegreen, is the developer of the Mountain Lakes subdivision
in Texas. A declaratory judgment action was filed against Southwest in Texas state court through which the plaintiffs seek to
develop their reserved mineral interests in, on and under the Mountain Lakes subdivision. The property owners association and
some of the individual landowners have filed cross actions against Bluegreen, Southwest and individual directors of the property
owners association related to the mineral rights and certain amenities in the subdivision as described below. On January 17, 2007,
the court ruled that the restrictions placed on the development that prohibited oil and gas production and development were invalid
and not enforceable as a matter of law, that such restrictions did not prohibit the development of the plaintiffs’ prior
reserved mineral interests and that Southwest breached its duty to lease the minerals to third parties for development. The court
further ruled that Southwest was the sole holder of the right to lease the minerals to third parties. Southwest appealed the trial
court’s ruling. On January 22, 2009, the appellate court reversed the trial court’s decision and ruled in Southwest’s
favor and determined that all executive rights were owned by Southwest and then transferred to the individual property owners
in connection with the sales of land. All property owner claims were decided in favor of Southwest. It was also decided that Southwest
did not breach a fiduciary duty to the plaintiffs as an executive rights holder. As a result of this decision, no damages or attorneys’
fees are owed to the plaintiffs. On May 14, 2009, the plaintiffs filed an appeal with the Texas Supreme Court asking the Court
to reverse the Appellate Court’s decision in favor of Southwest. On September 15, 2010, the Court heard oral arguments on
whether to reverse or affirm the Appellate Court’s decision. No information is available as to when the Texas Supreme Court
will render a decision on appeal.

 

On
  September 14, 2009, plaintiffs brought suit against Southwest, Bluegreen Southwest Land, Inc. and Bluegreen Communities of Texas,
  L.P., subsidiaries of Bluegreen, alleging fraud, negligent misrepresentation, breach of contract, and negligence with regards
  to the Ridgelake Shores subdivision, developed in Montgomery County, Texas, specifically, the usability of the lakes within the
  community for fishing and sporting and the general level of quality at the community. The lawsuit sought material damages and
  the payment of costs to remediate the lake. On September 10, 2010, a tentative settlement of this matter was reached pursuant
  to which Bluegreen agreed to pay $0.3 million to provide for improvements to the fish habitat and general usability of the lake
  environment. The settlement agreement has since been fully executed and as of December 31, 2010, Bluegreen paid $0.2 million of
  the agreed upon settlement payment. Bluegreen has accrued the remaining $0.1 million due. Improvements to the lake are ongoing
  and Bluegreen will disburse the remaining funds as they are needed to complete the improvements.

 

On
September 18, 2008, plaintiffs brought suit against Bluegreen Communities of Georgia, LLC, a Bluegreen subsidiary (“Bluegreen
Georgia”), alleging fraud and misrepresentation with regards to the construction of a marina at the Sanctuary Cove subdivision
located in Camden County, Georgia. Plaintiffs subsequently withdrew the fraud and misrepresentation counts and filed a count alleging
violation of racketeering laws, including mail fraud and wire fraud. On January 25, 2010, plaintiffs filed a second complaint
seeking approval to proceed with the lawsuit as a class action on behalf of more than 100 persons claimed to have been harmed
by the alleged activities in a similar manner. Bluegreen Georgia has filed a response with the Court in opposition to class certification.
Bluegreen Georgia has also filed a Motion to Dismiss the lawsuit which the Court converted to a Motion for Summary Judgment. No
decision has yet been made by the Court as to whether they will certify a class or grant Bluegreen Georgia’s Motion. Bluegreen
denies the allegations and intends to vigorously defend the lawsuit.

 

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On
June 3, 2010, plaintiffs filed suit against Bluegreen Georgia and Sanctuary Cove at St. Andrews Sound Community Association, Inc.,
alleging breach by Bluegreen Georgia and the community association of a bulk cable TV services contract at Bluegreen's Sanctuary
Cove single family residential community being developed in Waverly, Georgia. In its complaint, the plaintiffs alleged that approximately
$0.2 million in unpaid bulk cable fees are due from the defendants, and that the non-payment of fees will continue to accrue on
a monthly basis. Bluegreen and the community association allege incomplete performance under the contract by the plaintiffs and
that the cable system installed was inferior and did not comply with the requirements of the contract. The case went to mediation
on September 20, 2010, but no resolution was reached. Both parties have filed Motions for Summary Judgment in connection with
the issue whether the Community Association is a proper party under the lawsuit. A hearing date of August 11, 2011 has been set
to argue those Motions. The original trial date was postponed in order for Motions to be argued and a new trial date has not yet
been set.

 

7ex10-1.htm

Exhibit 10.1

 

AMENDMENT

TO

2000 STOCK INCENTIVE PLAN

WHEREAS, Strategic Diagnostics Inc. (the “Company”), maintains the 2000 Stock Incentive Plan (the “Plan) in order to encourage and enable the officers, employees, directors, consultants and advisors of the Company and its subsidiaries upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company.  It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests with those of the Company, thereby stimulating their efforts on the Company’s behalf and strengthening their desire to remain with the Company; and

WHEREAS, the Board of Directors and the stockholders of the Company have approved amendments to the Plan (the “Amendment”) (i) to increase the maximum number of shares of the Company’s Common Stock, par value $0.01 per share (the “Common Stock”), that may be issued under the Plan by two million (2,000,000) shares of Common Stock.

NOW THEREFORE, in accordance with the foregoing, the Plan shall be amended as follows:

1.             Effective as of the date hereof, the first paragraph of Section 3 of the Plan is hereby amended, in its entirety, to read as follows:

 

	
  

	
“Shares Issuable.  The maximum number of shares of Stock reserved and available for issuance under the Plan is 8,000,000 shares. For purposes of this limitation, the shares of Stock underlying any Awards which are forfeited, canceled, reacquired by the Company, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan so long as the participants to whom such Awards had been previously granted received no benefits of ownership of the underlying shares of Stock to which the Award related. Shares issued under the Plan may be authorized but unissued shares or shares reacquired by the Company.”

 

2.             In all respects not amended by this Amendment, the Plan is hereby ratified and confirmed.

 

 

[Signature page follows]

 

 

 

 

 

IN WITNESS WHEREOF, and as evidence of the adoption of the amendment set forth herein, the appropriate officer of the Company has executed this Amendment, effective as of May 17, 2011.

 

	 	 	STRATEGIC DIAGNOSTICS INC.
	 	 	 
	 	 	 
	By:	 	/s/ Francis M. DiNuzzo
	 	 	Name: Francis M. DiNuzzo
	 	 	Title: President and Chief Executive Officer

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