Document:

Exhibit
10.8

 

PARCEL F DEVELOPMENT AGREEMENT

 

THIS PARCEL F DEVELOPMENT AGREEMENT (this “Agreement”) is made as of
the 29th day of March, 2004, by and among, INNISBROOK F, LLC, a Florida limited
liability company, formerly known as Bayfair Innisbrook, L.L.C. (“Parcel F
Purchaser”) and GOLF HOST RESORTS, INC., a Colorado corporation (“Golf Host”),
and is consented to by GOLF TRUST OF AMERICA, L.P., a Delaware
limited partnership (“GTA”).

 

THE PARTIES ENTER THIS AGREEMENT on the basis of the following facts, understandings
and intentions:

 

A.                                    Golf
Host is the owner of the real property more particularly described on Exhibit
A-1 attached hereto (the “Golf Course Parcel”) located within
the community commonly known as “Innisbrook” upon which golf courses and other
facilities are located (collectively, the “Club Facilities”).  GTA is the holder of the GTA Mortgage
encumbering the Golf Course Parcel.

 

B.                                    Golf
Host is also the owner of the real property more particularly described on Exhibit
A-2 attached hereto (“Parcel F”) located within Innisbrook and
adjacent to holes 8 through 14 of the 18 hole “Island” golf course located
within the Golf Course Parcel (the “Island Course”).

 

C.                                    Golf
Host intends to sell to Parcel F Purchaser, and Parcel F Purchaser intends to
purchase from Golf Host, Parcel F pursuant to and in accordance with that
certain Agreement For Sale and Purchase of Real Property – Parcel F by and
between Golf Host and Parcel F Purchaser, dated as of July 13, 2001 (as
amended, the “Purchase Agreement”).

 

D.                                    Parcel
F Purchaser intends to develop Parcel F as a residential community pursuant to
this Agreement containing common areas and a mixture of product types and not
more than 400 residential units, as more particularly described in the Plans
(as defined below) as the Plans may be modified pursuant to this Agreement and
such Parcel F development shall include without limitation the development of
the Parcel F Access Road in accordance with the terms of this Agreement
(collectively, the “Parcel F Development”).

 

E.                                      Subject
to the usual and customary noise and other unavoidable impacts directly
associated with the development of the Parcel F Development, Parcel F Purchaser
agrees (A) to undertake the Parcel F Development in accordance with the Plans
and in such a manner so as to (i) avoid any unnecessary and/or avoidable
disruption to the Club Facilities to the fullest extent practicable, (ii)
comply with the limitations set forth in this Agreement including Exhibit N
to this Agreement, and (iii) comply with all applicable laws, rules and
regulations, and (B) to require purchasers of residential units located on
Parcel F to promptly join the Innisbrook Resort and Golf Club (the “Club”).

 

F.                                      Golf
Host agrees to operate and maintain the Island Course primarily as a golf
course and recreational facility, grant the Easements (as defined below) over,
across and/or under certain portions of the Golf Course Parcel, grant the
Memberships, and comply with its obligations as expressly set forth herein.

 

NOW,
THEREFORE, in consideration of Ten Dollars ($10.00) and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

 

 

ARTICLE I

RECITALS;
DEFINITIONS

 

1.1                               Recitals.  The party making the respective
foregoing Recitals represents that the respective Recitals are true and
correct.  The Recitals are incorporated
into this Agreement by reference as binding provisions on the parties.

 

1.2                               Definitions.  Unless the context expressly requires
otherwise, the terms listed in this Article I shall have the following
meanings, whenever used in this Agreement:

 

1.2.1                     “Bee
Pond Road” means the public right of way with the same name extending from
Alternate U.S. 19 and running contiguous to and past Parcel F.

 

1.2.2                     “Benefitted
Parcel” means Parcel F and Parcel F Access Road Parcel.

 

1.2.3                     “Directional
Sign Easement Parcel” means the real property described on Exhibit B
attached hereto.

 

1.2.4                     “Drainage
and Conservation Easement Parcel” means the real property described on Exhibit C
attached hereto.

 

1.2.5                     “Easement
Parcels” means: (a) the Drainage and Conservation Easement Parcel; (b)
Sanitary Sewer and Water Distribution Easement Parcel; (c) Stormwater and
Utility Easement Parcel A; (d) Stormwater and Utility Easement Parcel B;
(e) Wetland Mitigation Easement Parcel; (f) Mill Ridge Road; (g) Parcel F
Access Road Parcel; (h) Upland Preservation and Stormwater Drainage Easement
Parcel; (i) Entry Sign Easement Parcel; and (j) the Directional Sign Easement
Parcel.

 

1.2.6                     “Entry
Sign Easement Parcel” means the median in Old Post Road closest to U.S.
Highway 19 and, to the extent of Golf Host’s existing rights set forth in (and
not in violation of the provisions of) the Signage Easement Agreement (as
defined below), the median in Old Post Road closest to Belcher Road and the
Easement Parcels, as defined in the “Signage Easement Agreement” recorded in
O.R. Book 11355, Page 1265 of the Public Records of Pinellas County, Florida.

 

1.2.7                     “Golf
Cart Path Parcel” means the real property described on Exhibit D attached
hereto.

 

1.2.8                     “GTA
Mortgage” means that certain Mortgage, Security Agreement and Fixture
Filing with Assignment of Rents, executed by Golf Host Resorts, Inc. in favor
of GTA, dated June 20, 1997, and recorded in the Official Records Book
9748, page 2292, in the public records of Pinellas County, Florida, UCC-1
Financing Statement recorded in Official Records Book 9755, page 729, in the
public records of Pinellas County, Florida, and that certain UCC-1 Financing
Statement filed in the office of the Secretary of State of the State of Florida
on June 27, 1997, under filing number 970000141314-1, together with any
other collateral documents which create liens or security interests on any
property to secure the indebtedness secured by the GTA Mortgage.

 

1.2.9                     “Golf
Course Owner” means any Person that at the time in question owns a portion
or all of the Golf Course Parcel.

 

1.2.10              “Harbour
Bay Town Homes”  means the existing
residential community built in Tampa, Florida by Parcel F Purchaser and located
on Harbour Island.

 

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1.2.11              “Master
Parcel F Developer”  has the meaning
set forth in Section 3.6 below.

 

1.2.12              “Mill
Ridge Road” means the existing, paved private road known as Mill Ridge
Road, which runs across the Golf Course Parcel between Old Post Road and
Klosterman Road, and as generally described on the map attached hereto as Exhibit E.

 

1.2.13              “Owners’
Association” means the master property association to be created by the
Parcel F Owner.

 

1.2.14              “Parcel
F Owner” means any Person that at the time in question owns a portion or
all of Parcel F, including, without limitation, the Owner’s Association, but
excluding a Parcel F Unit Owner.

 

1.2.15              “Parcel
F Access Road Parcel” means the real property described on Exhibit F
attached hereto.

 

1.2.16              “Parcel F
Unit Owner” means any Person who at any time owns fee simple title to any
platted lot or residential unit within Parcel F.

 

1.2.17              “Person”
means any natural person, corporation, limited liability company, association,
general partnership, limited partnership or other entity having legal capacity.

 

1.2.18              “Phase
1 of the Parcel F Development” means the infrastructure development for the
portion of the Parcel F Development identified as phase 1 in the Plans.

 

1.2.19              “Sanitary
Sewer and Water Distribution Easement Parcel” means the real property
described on Exhibit G attached hereto.

 

1.2.20              “Stormwater
and Utility Easement Parcel A” means the real property described on Exhibit H
attached hereto.

 

1.2.21              “Stormwater
and Utility Easement Parcel B” means the real property described on Exhibit I
attached hereto.

 

1.2.22              “Upland
Preservation and Stormwater Drainage Easement Parcel” means the real
property described on Exhibit J attached hereto.

 

1.2.23              “Wetland
Mitigation Easement Parcel” means the real property described on Exhibit K
attached hereto.

 

ARTICLE II

EASEMENTS

 

2.1                               Sanitary
Sewer and Water Distribution Easement.  Golf Course Owner hereby grants and declares a non-exclusive
easement (the “Sanitary Sewer and Water Distribution Easement”) over and across
the Sanitary Sewer and Water Distribution Easement Parcel in favor of Parcel F
Owner for the sole and exclusive purposes of Parcel F Owner’s construction,
maintenance, repair and use of (a) underground sanitary sewer facilities,
(b) underground potable water facilities, (c) underground irrigation
water facilities, and (d) other underground utilities.  Nothing herein shall preclude Golf Course
Owner from utilizing

 

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the utilities and
facilities described in this Section 2.1 provided that the Golf
Course Owner does so at its own expense and in accordance with governmental
regulations.

 

2.2                               Drainage
and Conservation Easement. 
Golf Course Owner hereby grants and declares a non-exclusive easement
(the “Drainage and Conservation Easement”) over and across the Drainage and
Conservation Easement Parcel in favor of Parcel F Owner for the sole and
exclusive purposes of (a) construction, maintenance, repair and use of
underground pipes, lines and other facilities to convey surface water from
Parcel F and from the Parcel F Access Road Parcel, (b) draining surface
water from Parcel F and the Parcel F Access Road Parcel into the Drainage and
Conservation Easement Parcel, and (c) maintaining the Drainage and Conservation
Easement Parcel in its current condition.

 

2.3                               Stormwater
and Utility Easement.  Golf
Course Owner hereby grants and declares (a) a non-exclusive easement (“Stormwater
Easement A”) over and across Stormwater and Utility Easement Parcel  A in
favor of Parcel F Owner for the sole and exclusive purpose of Parcel F Owner’s
construction, maintenance, repair and use of underground sanitary sewer,
potable water, irrigation water and other utility facilities and  underground pipes, lines and other
facilities to convey surface water from Parcel F and the Parcel F Access
Road Parcel; and (b) a non-exclusive easement (“Stormwater Easement B”)
over and across Stormwater and Utility Easement Parcel B in favor of the Parcel
F Owner for the sole and exclusive purpose of Parcel F Owner’s construction,
maintenance, repair and use of underground sanitary sewer, potable water,
irrigation water and other utility facilities and underground pipes, lines and
other facilities to convey surface water from Parcel F.  Nothing herein shall preclude Golf Course
Owner from utilizing the utilities and facilities described in this Section 2.3
provided that the Golf Course Owner does so at its own expense and in
accordance with governmental regulations.

 

2.4                               Mill
Ridge Road and Parcel F Access Road Easements.  Golf Course Owner hereby grants and declares
a non-exclusive easement (the “Mill Ridge Road Easement”) over and across the
existing Mill Ridge Road (the improvement of which by the Parcel F Owner is not
contemplated by this Agreement) in favor of the Parcel F Owner for the lawful
use by Parcel F Owner and the guests and invitees of Parcel F Owner and the
Parcel F Unit Owners and for the sole and exclusive purpose of providing
legally permissible pedestrian and vehicular ingress and egress over and across
Mill Ridge Road.  Golf Course Owner also
hereby grants and declares a non-exclusive easement (the “Parcel F Access Road
Easement”) over, across and under Parcel F Access Road Parcel in favor of
Parcel F Owner for the lawful use by Parcel F Owner and the guests and invitees
of Parcel F Owner and the Parcel F Unit Owners and for the sole purpose of
Parcel F Owner’s construction, maintenance, repair and use of a roadway,
drainage infrastructure, entry improvements, landscaping, street lighting and
related improvements and underground utilities to serve Parcel F and to provide
pedestrian and vehicular ingress and egress to Parcel F, subject to the Golf Course
Owner’s rules and regulations applied at the time in question to Mill Ridge
Road and Old Post Road.  The easement
for access over and across the Parcel F Access Road Parcel (but not the
easement over and across the Old Post Road Parcel and the Relocated Road
Parcel) created pursuant to paragraph 2.1 of the Declaration of Easements,
Spread of Mortgage Lien, and Subordination of Mortgages and Partial Release of
Mortgages recorded in O. R. Book 11310, Page 138 of the Public Records of
Pinellas County, is hereby terminated and of no further force or effect.  The

 

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Parcel F Access
Easement, as defined in the aforesaid paragraph 2.1, may be used on a
non-exclusive basis by Parcel F Owner to the extent allowed for in this
Agreement.

 

2.5                               Wetland
Mitigation Easement.  Golf
Course Owner hereby grants and declares a non-exclusive easement (the “Wetland
Mitigation Easement”) over and across the Wetland Mitigation Easement Parcel in
favor of Parcel F Owner to the extent required by and in accordance with Permit
No. 44017498.005 issued by Southwest Florida Water Management District dated
March 28, 2003, and any subsequent permit related thereto, for the sole
and exclusive purposes of Parcel F Owner’s construction and installation of all
mitigation of wetland impacts (“Wetland Mitigation”) arising from or in
connection with the development and improvement of Parcel F Access Road, and
undertaking all monitoring, maintenance, and all other governmental
requirements relating to such Wetland Mitigation, together with an easement for
ingress and egress to and from the Wetland Mitigation Easement Parcel 
over and across property specified by Golf Course Owner in its sole discretion,
that is located in the Golf Course Parcel. 
Notwithstanding the foregoing, Parcel F Owner, at its sole cost and
expense, shall be solely responsible for the construction, installation,
monitoring, maintenance, repair, use and all other activities, including,
without limitation, complying with any governmental requirements (except for
the procurement of any and all necessary permits for the Wetland Mitigation,
which shall be the responsibility of Golf Course Owner, at Golf Course Owner’s
sole cost and expense), relating to Wetland Mitigation constructed by Parcel F
Owner on the Wetland Mitigation Easement Parcel or in any other area(s) of the
Golf Course Parcel as approved by Golf Course Owner.

 

2.6                               Upland
Preservation and Stormwater Drainage Easement.  Golf Course Owner hereby grants and declares
a non-exclusive easement (the “Upland Preservation and Stormwater Drainage
Easement”) over and across the Upland Preservation and Stormwater Drainage
Easement Parcel in favor of Parcel F Owner for the sole and exclusive purpose
of Parcel F Owner’s provision of upland preservation as required by (but only
if required by), and for the benefit of, regulatory agencies with proper
jurisdiction (including, without limitation, Pinellas County) in connection
with the permitting for and development of Parcel F and Parcel F Access
Road and the installation, use, maintenance and repair of underground pipe,
lines and other facilities to convey surface water.  The Upland Preservation and Stormwater Drainage Easement may be
assigned by Parcel F Owner to one or more governmental agencies in connection
with the development permits for Parcel F. 
Golf Course Owner shall have no responsibility whatsoever for Parcel F
Owner’s compliance with the requirements of any such regulatory agency.

 

2.7                               Signs.  Golf Course Owner hereby grants and
declares a non-exclusive easement (the “Sign Easement”) over and across (a) the
Directional Sign Easement Parcel in favor of Parcel F Owner for the sole and
exclusive purpose of Parcel F Owner’s installation of directional signs, and
(b) to the extent of Golf Course Owner’s existing rights, if any, the Entry
Sign Easement Parcel, for the sole and exclusive purpose of Parcel F Owner’s
installation of not more than two (2) project identification signs for the
Parcel F Development.  The actual number
of the directional signs that are installed by Parcel F Owner pursuant to the
Sign Easement shall not exceed the number of such signs that are specified in Exhibit B
for the Directional Sign Easement Parcel. 
There shall be no more than three (3) project identification signs for
the Parcel F Development, which signs shall be limited in number and located as
follows: (i) a total of not more than two (2) project identification signs in
the Entry Sign

 

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Easement Parcel (i.e.,
not more than one (1) project identification sign at the median in Old Post
Road closest to U.S. Highway 19 and not more than one (1) project
identification sign at the median in Old Post Road closest to Belcher Road and
the Easement Parcels (as defined in the Signage Easement Agreement)), and (ii)
a total of not more than one (1) project identification sign located at the
portion of the Parcel F Access Road adjacent to the tennis courts.  The size, content, placement and all other
aspects of the directional signs and the project identification signs shall be
subject to Golf Course Owner’s prior written approval, which approval shall not
be unreasonably withheld or delayed. 
Parcel F Owner agrees that the directional signs and the project identification
signs shall be consistent in all respects with the then existing signage within
Innisbrook.  Once the last residential
unit within Parcel F has been initially conveyed to a Retail Purchaser (as
defined below), the Sign Easement shall automatically terminate and be of no
further force or effect, and upon such termination, Parcel F Owner, at its sole
expense, shall (A) promptly remove and discard all such directional signs and
the project identification sign from the Golf Course Parcel, and (B) promptly
repair and restore the Directional Sign Easement Parcel and the Entry Sign
Easement Parcel (including all improvements thereon) to the same or better
condition as existed before the installation of such signs.

 

2.8                               Other
Provisions Applicable to the Easements.  The Sanitary Sewer and Water Distribution Easement, the Drainage
and Conservation Easement, Stormwater and Utility Easement A, Stormwater and
Utility Easement B, the Wetland Mitigation Easement, the Mill Ridge Road
Easement, the Parcel F Access Road Easement, the Upland Preservation and
Stormwater Drainage Easement and the Sign Easement shall be collectively
referred to herein as the “Easements.” 
With respect to each of the Easements and subject to the following
conditions, Golf Course Owner hereby grants a “Temporary Construction Easement”
over and across such portion of the Golf Course Parcel immediately adjacent to
each of the Easements in favor of Parcel F Owner for the sole and exclusive
purpose of Parcel F Owner’s construction of the improvements permitted by each
of the Easements, which Temporary Construction Easement shall be subject to any
and all requirements designated by Golf Course Owner including, without
limitation, the size, location, and duration of such easement and the  times construction may be undertaken.  Any and all work shall be performed in a
good workmanlike manner so as to minimize the disruption to, and maintain the
playability and quality of, the Club Facilities.  Each of the Easements (except for the Sign Easement which shall
automatically terminate in accordance with Section 2.7 of this Agreement)
shall continue in effect, in perpetuity, unless and until such Easement is
amended in accordance with Section 6.2 of this Agreement.  Each of the Easements shall be an easement
appurtenant to, and run with the title to, Parcel F and the Parcel F Access
Road.  All construction, installation,
monitoring, maintenance, repair, use and all other activities (including,
without limitation, the procurement of any and all necessary permits and
complying with any governmental requirements) with respect to each and every
one of the Easements (and the Temporary Construction Easement) shall be
performed in a professional, high-quality manner and promptly and diligently
completed once commenced by Parcel F Owner at Parcel F Owner’s sole cost and
expense.  Golf Course Owner shall bear
no such costs and expenses except in the event and to the extent expressly set
forth herein.  Each and all of the
Easements are being granted (and the Temporary Construction Easement which
shall be granted pursuant to and subject to the terms of this Agreement) on a
non-exclusive basis and Golf Course Owner may use, or cause or allow others to
use one or more of the Easements (and the Temporary Construction Easement) at
Golf

 

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Course Owner’s
sole election.  Golf Course Owner
reserves all of its rights to use the Easement Parcels, including, without
limitation, the right to construct, maintain and use improvements over, across
and under the Easement Parcels. 
Notwithstanding the foregoing, Golf Course Owner’s use of the Easement
Parcels shall not unreasonably interfere with the use of the Easements by
Parcel F Owner as specified in this Agreement. 
Prior to conducting any permitted activities on any of the Easement
Parcels pursuant to any right granted in any of the Easements, Parcel F Owner
shall, not less than thirty (30) days before commencing such permitted
activities on any of the Easement Parcels, deliver written notice to Golf
Course Owner of the specifics of such permitted activities, including, without
limitation, copies of plans and specifications for such permitted activities,
and the names of each contractor who will be performing any portion of such
permitted activities.  Parcel F Owner
shall, at its sole cost and expense: promptly replace any sod or other
landscaping or other improvements (including, without limitation, irrigation
and power lines, utility lines, pumphouse and equipment) disturbed by the activities
of Parcel F Owner (or its agents or contractors), and upon completion, promptly
repair and restore the Easement Parcels (including all improvements thereon)
and such portion of the Golf Course Parcel that is utilized by Parcel F Owner
as a Temporary Construction Easement (including all improvements thereon) to
the same or better condition as existed before such permitted activities of
Parcel F Owner (or its agents or contractors) on the Easement Parcels and the
Temporary Construction Easement; and promptly repair any damage to the Easement
Parcels and the Golf Course Parcel, and any improvements located thereon,
caused by the operation or malfunction of any pipes, lines or other equipment
or improvements installed, constructed, or placed in, under or adjacent to any
of the Easement Parcels by Parcel F Owner (or its agents or contractors).
Subject to the usual and customary noise and other unavoidable impacts directly
associated with the development of the Parcel F Development in accordance with
the Plans, Parcel F Owner (a) shall conduct all of its activities in connection
with the Easements and the Temporary Construction Easement in a manner so as to
avoid any unnecessary and/or avoidable disruption to the Club Facilities and
the operations thereon to the fullest extent practicable and to protect the
quiet enjoyment of the employees, guests, members, licensees and invitees of
Golf Course Owner, and (b) shall cooperate with Golf Course Owner with respect
to the timing, sequencing, organizing and supervising of any such permitted
activities on the Easement Parcels and the Temporary Construction Easement, so
as to maintain the playability and quality of the Club Facilities.

 

2.9                               Declaration
of Easement for Golf Cart Path. 
Parcel F Owner hereby declares and grants, a non-exclusive perpetual
easement (the “Golf Cart Path Easement”) (a) over and across the Golf Cart Path
Parcel in favor of the Golf Course Owner for the sole and exclusive purpose of
providing golf cart and maintenance equipment, and pedestrian access between
the portions of the Golf Course Parcel lying on either side of the Golf Cart
Path Parcel to facilitate use of the Golf Course Parcel by employees, guests,
members, licensees and invitees of the Golf Course Owner, and (b) under the
Golf Cart Path Parcel in favor of  the
Golf Course Owner for the purpose of the Golf Course Owner’s construction,
maintenance, repair and use, at the Golf Course Owner’s sole cost and expense,
of new utility lines (including, without limitation, irrigation and power
lines) and other improvements to be located under the Golf Cart Path Parcel; provided,
however, that all costs and expenses related to the relocation of any
existing improvements (e.g., tee boxes or utility lines, including,
without limitation, irrigation and power lines) on either the Golf Course
Parcel or Parcel F due to the construction of a new private road that will be
built subject to the Golf Cart Path Easement and pursuant to and in

 

7

 

accordance with
the Plans shall be completed and performed at Parcel F Owner’s sole cost and
expense.  The Golf Cart Path Easement
shall be an easement appurtenant to the Golf Course Parcel.  In the event that the Golf Course Owner
determines that, because of grade issues, the best location for the redesigned
cart path near the 11th tee box is outside of the boundaries of the
Golf Cart Path Easement, then Parcel F Owner agrees to amend the Golf Cart Path
Easement to accommodate the relocation of the golf cart path.  The Golf Cart Path Easement shall be
non-exclusive of other uses of Parcel F Owner, and Parcel F Owner reserves the
right to use the Golf Cart Path Easement, including, without limitation, the
right to construct, maintain and use improvements over, across and under the
Golf Cart Path Parcel.  Notwithstanding
the foregoing, Parcel F Owner’s use of the Golf Cart Path Easement shall not
unreasonably interfere with the use of the Golf Cart Path Easement by the Golf
Course Owner as specified in this Section 2.9.  The easement for the Golf Cart Path Easement created pursuant to
paragraph 2.3 of the Declaration of Easements, Spread of Mortgage Lien, and
Subordination of Mortgages and Partial Release of Mortgages recorded in O. R.
Book 11310, Page 138 of the Public Records of Pinellas County, is hereby
terminated and of no further force or effect.

 

ARTICLE III

OTHER RIGHTS AND SUBORDINATION

 

3.1                               “Innisbrook” Name and Mark.  Golf Course Owner hereby quitclaims to
Parcel F Owner a royalty free, non-exclusive license to use the name
“Innisbrook” (“Name”) and the design attached hereto as Exhibit L (“Logo”),
solely in connection with Parcel F Owner’s marketing, development and operation
of the Parcel F Development and for no other use, but only to the extent of
Golf Course Owner’s rights to the Name and Logo (together, the “Mark”), if
any.  Golf Course Owner and GTA make no
representations, warranties or covenants with respect to any ownership or other
possessory rights in the Mark.  To the
extent of Golf Course Owner’s rights to the Mark, if any, Parcel F Owner may
use the Mark only in connection with the name(s) of the Parcel F Development in
combination with at least two (2) other words keeping with the Scottish theme
of Innisbrook. The full name(s) of the Parcel F Development shall be approved
in advance in writing by Golf Course Owner, and shall not include the words
“Westin”, “Golf Trust,” “Golf Trust of America” or “Troon”, and shall
specifically exclude any other hotel or product names.  Parcel F Owner shall provide Golf Course
Owner, for Golf Course Owner’s prior written approval, plans for all signage
used by Parcel F Owner that uses the Mark, together with representative samples
of all advertising and other literature prepared by Parcel F Owner which uses
the Mark.  Parcel F Owner shall not use
the Mark in any sign, advertising or other literature which has not been
approved in advance and in writing by Golf Course Owner, which approval shall
not be unreasonably withheld or delayed. 
In addition to any other reason that Golf Course Owner may have for
disapproving any proposed use of the Mark, Golf Course Owner shall not have any
duty or obligation to approve any use of the Mark in any such sign, advertising
or other literature which contains any photographs, narratives or statements
(either in part or in whole) that may be determined by Golf Course Owner as
being misleading, untrue or inaccurate in any respect or that may be determined
by Golf Course Owner as obligating Golf Course Owner or GTA to anything
whatsoever.  When using the Mark under
this Agreement, Parcel F Owner undertakes to comply, at its sole cost and
expense, with all laws pertaining to trademarks and service marks in force at
any time in the State of Florida.  Golf
Course Owner shall have no liability under this Agreement to Parcel F Owner or
to any other party because of any challenge to or failure of Golf Course
Owner’s ownership of or right to use or license the use of the Mark or Parcel F

 

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Owner’s right to
use the Mark pursuant to this Agreement, whether or not Golf Course Owner
approves Parcel F Owner’s use thereof. 
To the best of Golf Course Owner’s actual knowledge, Golf Course Owner
has not granted any license or entered into any other agreement with respect to
the Mark which would prevent or prohibit the use of the Mark by Parcel F Owner
pursuant to this Agreement; Golf Course Owner has not undertaken any search of
legal rights in the U.S. Patent and Trademark Office or otherwise and Parcel F
Owner understands and acknowledges that fact. 
During the entire time this Agreement and the rights, if any,
quitclaimed to Parcel F Owner under this Section 3.1 shall be in effect,
Golf Course Owner agrees that it will not in the future grant any license or
enter into any other agreement with respect to the Mark which would be
inconsistent with the rights, if any, quitclaimed to Parcel F Owner pursuant to
this Agreement.

 

3.2                               Operation and Maintenance. 
Parcel F Owner agrees that all improvements constructed on Parcel F
shall be operated and maintained in a first-class, premier condition consistent
with a high quality residential community and such restriction shall run in
favor of the Golf Course Owner.  The
Golf Course Owner shall operate and maintain the Island Course primarily as a
golf course and recreational facility and shall operate and maintain the Island
Course in substantially the same condition as it is currently being operated; provided,
however, the Golf Course Owner shall only be so obligated for so long as
the Parcel F Development exists pursuant to the Plans.

 

3.3                               Golf Club Memberships. 
The Code (as defined below) provides for different types of memberships
in the Club.  A “Golf Membership” has
greater privileges than the other types of memberships (e.g., clubhouse
membership) in the Club.  Golf Course
Owner hereby grants and assigns to Parcel F Owner, for its benefit and the
benefit of the parties who have received a written assignment of a membership
executed by Parcel F Owner, up to: (i) 320 fully paid initiation fee
Memberships of any type (including a Golf Membership) (“Unrestricted
Memberships”); and (ii) 80 fully paid initiation fee Memberships of any type
(other than a Golf Membership) (“Restricted Memberships”) (individually, a
“Membership” and, collectively, the “Memberships”).  The Restricted Memberships may in no event be upgraded to a Golf
Membership without Golf Course Owner’s prior written approval in each instance.  Each of the Memberships shall be associated
with a separate residential unit to be located within Parcel F (but no more
than one (1) Membership shall be associated with a particular residential unit
to be located within Parcel F) and the holder of the Membership shall have
certain rights in the Club solely pursuant to (a) the Code of Regulations of
the Club (“Code”), which Golf Course Owner may amend from time to time pursuant
to the Code, and (b) this Agreement.  In
addition, each of the Memberships shall be freely transferable to an assignee
of Parcel F Owner who may own all or a portion of Parcel F, and/or to the first
bonafide third-party retail purchaser of a residential unit within
Parcel F (“Retail Purchaser”), pursuant to a written assignment of such
Membership executed by Parcel F Owner. All applicable Membership dues,
assessments and other charges that accrue after such date of assignment to a
Retail Purchaser shall be paid to the Club by such Retail Purchaser.  Parcel F Owner shall not assign (partially
or fully) a Membership to a Retail Purchaser until such time that the purchase
contract for the respective residential unit within Parcel F has been fully
performed and the transaction has closed. 
Each of the Memberships will not be subject to any dues, assessments or
other charges until such Membership is transferred to a Retail Purchaser of a
residential unit within Parcel F, but in no event shall any initiation fee
otherwise required pursuant to the Code (as the same may be amended from time
to time) be due and payable in connection with such Memberships

 

9

 

that are initially
acquired by each Retail Purchaser, unless such Memberships are not acquired
within ten (10) years from the date of this Agreement (in which case, such
Memberships shall only be transferred to a Retail Purchaser thereafter upon
payment by such Retail Purchaser of the then currently applicable initiation
fee to the Club).  Each and every owner
of a residential unit within Parcel F is required to join the Club at least as
a clubhouse member pursuant to the Code (as the same may be amended from
time-to-time) at the closing of a residential unit and shall (1) pay in a
timely manner the applicable dues and other charges that accrue for such
Membership on and after such closing, and (2) maintain such clubhouse
membership or another type of Membership with greater privileges (including
paying in a timely manner the applicable dues and other charges that accrue
with respect to that Membership) for so long as such owner owns the residential
unit within Parcel F.  The first Retail
Purchaser of a residential unit may upgrade its Membership to another class of
Membership with greater privileges pursuant to the Code by acquiring such
upgraded Membership from, and paying the additional initiation fee (i.e.,
the difference between the then current initiation fee for such upgraded
Membership and the initiation fee specified for the type of Membership acquired
by such Retail Purchaser at the time of its acquisition by such Retail
Purchaser) to, the Club; provided, however, that (x) only an
Unrestricted Membership may be upgraded to a Golf Membership, (y) there are not
more than 320 Golf Memberships in total acquired by Retail Purchasers that have
Unrestricted Memberships, and (z) in the event that such Retail Purchaser
upgrades its Membership within two (2) years after such Retail Purchaser’s
closing date on its residential unit within Parcel F, then such Retail
Purchaser may upgrade its Membership to another class of Membership with
greater privileges pursuant to the Code by acquiring such upgraded Membership
from Parcel F Owner pursuant to and in accordance with terms established by
Parcel F Owner, which terms shall provide an economic incentive for such Retail
Purchaser to upgrade their Membership as soon as possible within such two (2)
year period after such Retail Purchaser’s closing date on its residential unit
within Parcel F and shall provide that Golf Course Owner shall receive at the
time of such upgrade the difference between the dues that would have been paid
for such upgraded membership less the dues actually paid.  Golf Course Owner shall have the right to
review and approve the foregoing terms established by Parcel F Owner, which
approval shall not be unreasonably withheld. 
The Membership dues for such upgraded Memberships that accrue with
respect to that Membership after such upgrade shall be paid in a timely manner
by such member to the Club in accordance with the Code (as the same may be
amended from time to time).  Subsequent
Retail Purchaser’s of a residential unit (e.g., a purchaser who acquires
a residential unit from a person who acquired such unit from Parcel F Owner)
shall have the right to join the Club, pursuant to the terms of the Code (as
the same may be amended from time to time), including payment in a timely
manner of initiation fee and dues.  At
no time may the number of Memberships available to and/or held by the Parcel F
Unit Owners and acquired from Parcel F Owner exceed the number of residential
units actually built or under construction on Parcel F and no more than eighty
percent (80%) of the total Memberships shall be Unrestricted Memberships.

 

3.4                               Subordination of GTA Mortgage. 
GTA (is, as of the date of this Agreement, the mortgagee pursuant to the
GTA Mortgage.  GTA hereby subordinates
its lien and rights under the GTA Mortgage to this Agreement and GTA will not
foreclose or cancel any rights or interests of Golf Course Owner or Parcel F
Owner or otherwise pursuant to this Agreement.

 

3.5                               Amendment of Purchase Agreement; Survival Rights. 
No amendment, modification or assignment of the Purchase Agreement which
adversely affects the Golf Course

 

10

 

Parcel, GTA’s
interest as mortgagee of the Golf Course Parcel, or GTA or any of its affiliates’
interest in the sale of Parcel F shall be deemed to be effective without the
prior written consent of the Golf Course Owner.  Additionally, upon the termination of the Purchase Agreement or
Parcel F Purchaser’s interest in the Purchase Agreement, Parcel F Purchaser
shall have no further rights under this Agreement.

 

3.6                               Master Parcel F Developer. 
The Master Parcel F Developer shall mean Golf Host, and in the event
Golf Host conveys Parcel F to Parcel F Purchaser or any other Person, the
Master Parcel F Developer shall mean the initial purchaser of Parcel F from
Golf Host (the “Master Parcel F Developer”). 
The Master Parcel F Developer agrees that in the event the Master F
Parcel Developer conveys any portion or portions of Parcel F to one or more
builders or developers and the builder or developer fails to comply with any of
the obligations of the Parcel F Owner as described in this Agreement or in the
Declaration, the Master Parcel F Developer shall diligently attempt to enforce
the obligation against the breaching Parcel F Owner, which shall include filing
a lawsuit against the breaching Parcel F Owner for an injunction or for
monetary damages at Golf Course Owner’s discretion; provided, however, Golf
Course Owner agrees to select legal counsel and pay for such
representation.  In that regard, the
Master Parcel F Developer agrees that in its sale documentation with such a
builder or developer, such sale documentation shall include the builder or
developer’s agreement to comply with all obligations of the Parcel F Owner as
described in this Agreement and the Declaration, and such sale documentation
shall include a “prevailing parties” provision which reward attorneys’ fees and
expenses to the prevailing party in any litigation.  Such attorneys’ fees and expenses would be paid by the
non-prevailing party to Golf Course Owner in the event such fees and expenses
were awarded to the Master Parcel F Developer. 
In the event that all residential units are constructed and sold in
Parcel F to residential Parcel F Unit Owners, then this Section 3.6
shall no longer be effective.

 

ARTICLE IV

INSURANCE AND MAINTENANCE

 

4.1                               Insurance
By Parcel F Owner.  Parcel F
Owner, at its sole cost and expense, shall obtain and maintain during the
entire time that this Agreement shall be in effect, a commercial general
liability policy (occurrence form) (general/public and products; completed
operations, automobile and excess umbrella) for personal injury, bodily injury
and property damage occurring to or on the Easements, the Temporary
Construction Easement and/or Parcel F (excluding residential units owned by
Retail Purchasers) or as a result of Parcel F Owner’s development of Parcel F
(including any property damage occurring to the Golf Course Parcel and any
improvements thereon), with coverage for premises and operations liability,
contractual liability, completed operations coverage, products liability and
liability for claims brought against Golf Course Owner (and GTA, or any
affiliate thereof, as long as it is the mortgagee pursuant to the GTA Mortgage
(or any subsequent mortgage)), which claims result and/or arise from the
negligent acts or omissions of Parcel F Owner or of the contractors, agents,
servants, employees, licensees, guests and invitees of Parcel F Owner, which
shall name Golf Course Owner (and GTA, as long as it is the mortgagee pursuant
to the GTA Mortgage (or any subsequent mortgage)) as an additional insured
(collectively, the “Parcel F Owner Insurance”).  The Parcel F Owner Insurance shall have limits of coverage of not
less than $2,000,000.00 per occurrence and $5,000,000.00 in the aggregate.  Parcel F Owner shall not

 

11

 

reduce or
terminate the Parcel F Owner Insurance without the prior written consent of
Golf Course Owner and Golf Course Owner shall receive not less than forty five
(45) days prior written notice of any reduction or termination of the Parcel F
Owner Insurance by Parcel F Owner.  Any
reduction or termination of the Parcel F Owner Insurance made by Parcel F Owner
without the consent of Golf Course Owner shall be deemed a default under this
Agreement.

 

4.2                               Maintenance
and Repair.  Parcel F Owner, at
its sole cost and expense, shall promptly repair, maintain and complete all
work in connection with the Easements and the Temporary Construction Easement,
including, without limitation, performing all such work in accordance with all
applicable laws and regulations, and promptly pay any and all fees and
penalties for any violations with respect thereto, during the entire time that
any one or more of this Agreement, the Easements and the Temporary Construction
Easement granted under this Agreement shall be in effect without limitation on
any of Golf Course Owner’s rights or remedies under this Agreement or at
law.  Golf Course Owner shall have the
right at any time and from time to time to post and maintain upon the Golf
Course Parcel and/or Parcel F such notices as may be necessary to protect Golf
Course Owner’s interest from mechanics’ liens, materialmen’s liens or liens of
a similar nature.

 

4.3                               Insurance
By Parcel F Owner’s Contractors.  Parcel
F Owner shall require its general contractor to maintain the same insurance
that is required to be maintained by Parcel F Owner pursuant to
Section 4.1 above and to specify Golf Course Owner (and GTA as long as it
is the mortgagee pursuant to the GTA Mortgage (or any subsequent mortgage)) as
an additional insured.

 

ARTICLE V

DEVELOPMENT

 

5.1                               Zoning.  Parcel F and the Golf Course Parcel are
subject to, and development of Parcel F shall be governed by, the Revised RPD
Overall Development Plan, Plan 1050, prepared by King Engineering Associates
dated April 10, 2001 (together with any other applicable zoning
regulations, the “Zoning Regulations”). 
Golf Course Owner reserves the right and authority to amend the Zoning
Regulations pertaining to the Golf Course Parcel as it may deem to be prudent,
but Golf Course Owner shall not amend the Zoning Regulations if such amendment
will have a material adverse effect on the use, development or value of Parcel
F or Parcel F Owner’s Development.  Golf
Course Owner grants Parcel F Owner the right and authority to amend the Zoning
Regulations pertaining to Parcel F as it may deem to be prudent, but Parcel F
Owner shall not amend the Zoning Regulations if such amendment will have a
material adverse effect on the use, development or value of the Golf Course
Parcel and Club Facilities, decrease the number of dwelling units, or modify
the building height requirements or current setback requirements permitted by
the Zoning Regulations on the Golf Course Parcel. Each of the parties hereto
shall comply with the requirements of the Zoning Regulations pertaining to its
property.

 

5.2                               Construction.  Except as
provided below, all ingress and egress to and from Parcel F or the Parcel F
Access Road Parcel in connection with Parcel F Owner’s construction of the
Parcel F Development shall only be made by Parcel F Owner via Bee Pond Road
from Alternate U.S. Highway 19, and shall not be made through the Golf Course
Parcel.  Parcel F

 

12

 

Owner shall be,
at its sole cost and expense, solely responsible for any and all improvements
(including securing and obtaining all applicable permits) to Bee Pond Road as
required for such use, and for assuring that all contractors, subcontractors
and material suppliers, and their employees, seeking access to Parcel F or
Parcel F Access Road Parcel in connection with the Parcel F Development comply
with this requirement.  Notwithstanding
the foregoing, if Parcel F Owner is prohibited by law or by applicable
governmental authorities or is unable due to any reason outside of Parcel F
Owner’s reasonable control from utilizing Bee Pond Road for construction
traffic, and Parcel F Owner uses  and
continues to use its best efforts to challenge the prohibition to use Bee Pond
Road for construction traffic, including without limitation, the filing and
diligent prosecution of a lawsuit at Parcel F Owner’s sole cost and expense to challenge
the prohibition, Parcel F Owner shall have the right (but only during such
period that Parcel F Owner’s use is prohibited or is unable to utilize Bee Pond
Road) to utilize the portion of Old Post Road that is east of the
intersection of Old Post Road and the west boundary of Parcel F Access
Road Parcel or at Golf Course Owner’s election, Mill Ridge Road and the portion
of Old Post Road between Parcel F and Mill Ridge Road for construction traffic
to and from U.S. Highway 19 or Klosterman Road and Parcel F, provided that
during the period of time that Parcel F Owner is using the alternative ingress
described above, Parcel F Owner continues to make a good faith and diligent
effort to challenge the prohibition to use Bee Pond Road at its sole cost and
expense.  Parcel F Owner, at its sole
cost and expense, shall (i) be responsible for any necessary improvements to
the portion of Old Post Road or Mill Ridge Road adjacent to the guard houses so
that Parcel F Owner can so utilize Old Post Road or Mill Ridge Road for
construction traffic, (ii) promptly repair, maintain, wash down, clean and
provide security in connection with its use of Old Post Road or Mill Ridge Road
for construction traffic, and (iii) limit the hours that heavy infrastructure
equipment utilizes Old Post or Old Mill Ridge Roads so as to minimize the
impact to the Golf Course Parcel and Club Facilities to the fullest extent
practicable, the times to be agreed upon by Golf Course Owner and Parcel F
Owner.  Parcel F Owner shall be
responsible, at its sole cost and expense, for maintaining restricted security
controlled construction access to Parcel F from Bee Pond Road.  During the period of any construction of or
at the Parcel F Development, but not including repairs and maintenance to
individually owned residential units within Parcel F after the completion of
the Parcel F Development by or on behalf of Retail Purchasers, Parcel F Owner
shall, at its sole cost and expense, restrict vehicular access of all
contractors, subcontractors, material suppliers and their employees so that
they can not drive onto Old Post Road from the Parcel F Access Road, unless
expressly authorized to do so pursuant to the foregoing provisions; except that
upon request by Parcel F Owner, Golf Course Owner shall allow Parcel F Owner,
for a short period of time (less than one week), with such timeframe to be
determined by Golf Course Owner in its reasonable discretion and convenience,
the right to move its site work equipment, contractors, subcontractors,
material supplies and their employees on to Parcel F by utilizing, at Golf
Course Owner’s election, either (i) the portion of Old Post Road that is east
of the intersection of Old Post Road and the west boundary of Parcel F
Access Road Parcel, (ii) Mill Ridge Road and the portion of Old Post Road
between Parcel F and Mill Ridge Road for access to and from U.S. Highway 19 or
Klosterman Road and Parcel F, or (iii) Bee Pond Road; and by further utilizing
access across the Golf Course Parcel to Parcel F at a location to be chosen by
Golf Course Owner in its sole discretion. 
Parcel F Owner, at its sole cost and expense, shall, and shall require
all contractors, subcontractors and material suppliers, and their employees to,
comply with construction regulations implemented by Parcel F Owner,

 

13

 

copies of which
shall be promptly delivered to Golf Course Owner by Parcel F Owner.  Such regulations shall include (and where
applicable, at the sole cost and expense of Parcel F Owner): (a) a prohibition
of construction on the Golf Course Parcel during the Active Golf Season (as
defined below); (b) during the entire year, a prohibition of construction for
the Parcel F Development on Sundays, whether such construction occurs on the
Golf Course Parcel, on Parcel F, or on the Parcel F Access Road; (c) a
prohibition on the use of radios and other unnecessary noise; (d) a requirement
to wear shirts at all times; (e) a requirement that parking be only in
designated areas; (f) a requirement that all construction sites be maintained
in a clean and neat manner; (g) a requirement that construction start no sooner
than 7:00 a.m. and be completed no later than 6:00 p.m. (or 7:00 p.m. during
daylight savings time); (h) a prohibition against access to Parcel F except as
expressly set forth in this Section 5.2; (i) a speed limit of 12 mph for
all vehicular traffic; (j) a requirement that, subject to the usual and
customary noise and other unavoidable impacts directly associated with the
development of the Parcel F Development in accordance with the Plans, Parcel F
Owner shall not cause or allow to be caused at anytime any unnecessary and/or
avoidable disruption to the Club Facilities to the fullest extent practicable;
(k) a requirement that all work shall be performed at Parcel F Owner’s sole
cost and expense in accordance with all applicable governmental permits,
approvals, laws, regulations and ordinances (including, without limitation, all
health and safety rules and procedures), provided Parcel F Owner shall have
fifteen (15) calendar days to comply with any notice of deficiency, unless a
shorter time period to comply with such notice of deficiency is required, in
which case Parcel F Owner shall comply with such shorter time period; (l) a
requirement that Parcel F Owner cause all construction and improvement
activities in connection with Phase 1 of the Parcel F Development (as
determined by Parcel F Owner) to be conducted and completed as soon as
reasonably practicable, but in no event later than 24 months within Parcel F
Owner’s receipt of the requisite permits for such construction; (m) a
requirement that all hazardous waste, chemicals, paint and the like and all
garbage and debris shall be timely and properly disposed of by Parcel F Owner
and all of its employees, contractors, subcontractors and material suppliers
(without the use of any Golf Course Parcel receptacles, garbage containers and
the like) in accordance with all applicable laws, rules and regulations; (n) a
prohibition against the use of Golf Course Parcel bathrooms; (o) a requirement
that there will be no construction on the Golf Course Parcel, Parcel F, or
Parcel F Access Road that causes the irrigation system to be unavailable to any
portion of the Golf Course Parcel for more than one time in any seven-day
period and for more than 24 consecutive hours at a time, and Golf Course Owner
agrees to reasonably cooperate with Parcel F Owner to allow Parcel F Owner
access to relevant portions of the Golf Course Parcel to construct above ground
temporary water lines (for each set of water lines, for a period not to exceed
10 days) to accomplish the foregoing provided Parcel F Owner complies with
applicable governmental laws and regulations; and (p) Parcel F Owner’s
agreement that work performed on the Golf Course Parcel shall be scheduled in a
manner so that all construction sites on the Golf Course Parcel are cleaned and
returned to their original or retrofitted condition so that the Island Golf
Course is open for full play at the start of the Active Golf Season (as
described below); provided, however, notwithstanding anything to
the contrary contained in this Agreement, during (and with respect to) the
“Active Golf Season” (i.e., the period October 1 through May 1) of
any year, for any construction on land other than the Golf Course Parcel,
Parcel F Owner shall also comply with the following: (1) Parcel F Owner shall
provide to Golf Course Owner for its review and comment, on or before
August 31 of each and every year that

 

14

 

the site
construction of the Parcel F Development is in progress (but excluding times
when residential  vertical construction
is the only construction), a detailed and accurate summary of (i) Parcel F
Owner’s proposed site work plans (including the respective project timeline)
(“Proposed Site Work Plans”) which Proposed Site Work Plans shall include any
and all site work to be performed in Parcel F during the Active Golf Season
which site work may reasonably be determined by Parcel F Owner to cause any
disruption or other impacts on the Island Course, (ii) Parcel F Owner’s
proposed mitigation plan (“Proposed Mitigation Plan”) to minimize and mitigate
any and all disruption or other impacts on the Island Course which may be
caused by the site work contained in the Proposed Site Work Plans, which
Proposed Mitigation Plan shall include, without limitation, dust and noise
control management and the timing and scheduling of work in critical areas of
the Island Course, (2) Parcel F Owner shall use its good faith efforts to
properly revise the Proposed Site Work Plans and Proposed Mitigation Plan to
accommodate Golf Course Owner’s comments; and (3) Parcel F Owner shall use its
good faith efforts to complete the Proposed Site Work Plans and Proposed
Mitigation Plan (each as revised to reflect any and all of Golf Course Owner’s
comments) in accordance with their respective terms.

 

5.3                               Improvements.  Parcel F
Owner shall be solely responsible for all fees, costs and expenses of
improvements (including, without limitation, securing all permits and other
governmental approvals required in connection with the improvements described
in this Section 5.3) on (a) the Golf Course Parcel constructed by Golf
Course Owner pursuant to this Agreement in accordance with Exhibit Q attached hereto, and (b) Parcel F and the Parcel F
Access Road Parcel necessary to construct the Parcel F Development, including,
without limitation, items which are contained in Exhibit Q and the roadway to be constructed upon Parcel F
Access Road Parcel in (1) substantial accordance with and as described in the
construction plans for the Parcel F Access Road prepared by King Engineering
Associates dated July 23, 2001, SP# 1050.071, job number 1218-006-000, a
true, correct and complete copy of which Parcel F Owner agrees it has provided
to Golf Course Owner and GTA, and (2) accordance with all applicable
governmental permits, approvals, laws and ordinances, and all drainage and
wetland mitigation required in connection therewith.  At anytime after Parcel F Owner’s completion of Parcel F Access
Road and all infrastructure improvements in connection therewith, upon
receiving Golf Course Owner’s written request Parcel F Owner shall promptly
execute and deliver a lien free bill of sale to Golf Course Owner, at Parcel F
Owner’s sole cost and expense, for all such improvements and all such
improvements shall belong to and be the sole and exclusive property of Golf
Course Owner with no rights vested in any other Person, including, without
limitation, Parcel F Owner; provided, however, that Parcel F
Owner shall have the right to use such improvements to the extent of the
Easements granted to Parcel F Owner by Golf Course Owner under this Agreement
or other rights of Parcel F Owner. 
Parcel F Owner, at its sole cost and expense, agrees that any and all
necessary maintenance, repair and all other activities necessary to satisfy and
comply with any governmental requirements with respect to Parcel F Access Road
shall be the sole responsibility of Parcel F Owner and shall be performed by
Parcel F Owner in a professional, high-quality manner and promptly and
diligently completed once commenced by Parcel F Owner.  If the Plans are modified in any way
and the Golf Course Owner reasonably determines that the Golf Course Parcel is
adversely impacted by such modification, in addition to those improvements
described in Exhibit Q, then Parcel F Owner shall either pay for or promptly
reimburse Golf Course Owner for the cost of such additional improvements that
are

 

15

 

necessary, in Golf Course Owner’s reasonable opinion,
because of such changes.  Parcel F Owner
agrees that the scheduling of Parcel F Development construction that impacts
the Golf Course Parcel improvements shall be reasonably coordinated with the
construction of improvements to the Golf Course Parcel made in accordance with Exhibit Q in
order to take into account optimum time frames for sodding, reseeding and
overseeding of turf and other agronomic issues.  Golf Course Owner may elect, by notifying Parcel F Owner within
one hundred eighty (180) days after the Effective Date of this Agreement, to
shift the location of the Parcel F Access Road approximately 15 to 25 feet
further away from hole 18 of the Island Golf Course.  In the event Golf Course Owner makes such election, Parcel F
Owner shall be required to (a) obtain, at Parcel F Owner’s cost, all
governmental permits and approvals necessary in order to construct the Parcel F
Access Road in such new location, and (b) pay for the additional cost of
construction, if any, of the Parcel F Access Road due to such new location
above and beyond the cost of construction in the prior location.  Golf Course Owner and Parcel F Owner agree
to cooperate in undertaking such permitting immediately after Golf Course Owner
exercises such election and Golf Course Owner and Parcel F Owner agree to
proceed with all reasonable due diligence to obtain all permits and
approvals.  If such permitting is
approved, Parcel F Owner and Golf Course Owner agree to adjust the location of
the Parcel F Access Road Parcel and corresponding easement to accommodate the
final approved location of the road.

 

5.4                               Utilities.  Parcel F
Owner shall secure its potable water source and sanitary sewer service, at its
sole cost and expense, directly from Pinellas County.  Parcel F Owner shall not be permitted to connect any improvements
now or hereafter constructed on Parcel F or on Parcel F Access Road Parcel to
Golf Course Owner’s potable water or sanitary sewer lines or facilities.

 

5.5                               Development of Parcel F.  Parcel F Owner has prepared and submitted to Golf Course Owner
and GTA, and Golf Course Owner and GTA have approved, a preliminary site plan,
conceptual elevations, architectural renderings, sketches and preliminary floor
plans for some but not all of the dwelling units, which are all more
particularly described on Exhibit M attached hereto (together with
any other plans subsequently approved by Golf Course Owner in accordance with
this Section 5.5, the “Plans”). 
The Plans shall comply with all applicable laws, rules and regulations,
including, without limitation, all zoning regulations.  The Plans are preliminary and conceptual in
nature and will be refined and modified. 
Such refined and modified plans shall be submitted to Golf Course Owner
for review and approval, which approval shall not be unreasonably withheld or
delayed (“Plan Approval”).  If no
objection is received by Parcel F Owner within fifteen (15) days after delivery
of a complete set of the modified Plans to Golf Course Owner, such modified
Plans will be deemed approved by Golf Course Owner.  Any modified Plans shall be approved by Golf Course Owner so long
as the modified Plans do not have a materially adverse greater impact on the
Island Golf Course than the prior Plans. 
In all cases, the Plans may not be modified without Golf Course Owner’s
consent if such modifications include an increase in project density, reduction
of any setbacks, or increase of any building height.  In the event that Golf Course Owner does not provide to Parcel F
Owner the Plan Approval, Golf Course Owner shall provide Parcel F Owner with a
written notice of its specific reasons for withholding the Plan Approval.  After Parcel F Owner’s receipt of such written
notice of Golf Course Owner’s specific reasons for withholding the Plan
Approval, Parcel F Owner may either (1) resubmit to Golf Course Owner for its
review and Plan Approval a revised copy of the proposed modified or new Plans,
or (2)

 

16

 

initiate
arbitration proceedings by providing Golf Course Owner and with written notice
of Parcel F Owner’s intention to initiate arbitration to resolve its objection
to Golf Course Owner’s decision to withhold the Plan Approval, which
arbitration shall be conducted in accordance with Section 6.11 of this
Agreement.  Notwithstanding the
foregoing, modifications to the Plan proposed by Parcel F Owner, or any change
required by a governmental agency, may be made with prior written notice
(including copies of all of the governmental agency documentation related
thereto) to Golf Course Owner but without the written approval of Golf Course
Owner.  In the event that Golf Course
Owner believes that some or all of such modifications to the Plans cause a
materially greater adverse impact to the Island Golf Course and Golf Course
Owner provides Parcel F Owner with written notice of Golf Course Owner’s
objection to the same together with a written summary of such objections, then Parcel
F Owner shall elect either option (1) or (2) above.  Golf Course Owner shall have twenty (20) days after receipt of
any revised or new Plans to deliver notice of its objection of the same to
Parcel F Owner together with the specifics reasons for such objections or such
proposed modified or new Plans shall be deemed approved.  Parcel F Owner agrees to develop Parcel F
and construct improvements on Parcel F generally consistent with the quality of
construction and appearance of the improvements at the Harbour Bay Town Homes.

 

5.6                               Common Expenses.  Golf Course
Owner will incur certain expenses in connection with landscaping (including
irrigation), lighting, maintenance and repair of Old Post Road and Mill Ridge
Road (which roads are hereinafter referred to together as the “Roads”), and
providing private security services for the Golf Course Parcel and possibly
portions of Parcel F, including guard gates, and which expenses are reasonably
incurred by Golf Course Owner.  Golf
Course Owner shall use reasonable efforts to maintain the Roads and other items
for which Parcel F Owner is paying Shared Expenses in generally the same
condition as the Roads and such other items have historically been
maintained.  The Owners’ Association
shall be obligated to contribute on a calendar quarterly basis to the expenses
(the “Shared Expenses”) as set forth below for: (a) landscaping (including
irrigation) and lighting of the Roads and the common areas adjacent to the
Roads; and (b) maintenance and repair of the Roads.  Any expenses which directly and solely benefit Parcel F, such as
expenses for private security guards, shall be borne solely by the Parcel F
Owner.  The portion of the Shared
Expenses to be borne by the Owners’ Association shall be equal to two-thirds
(2/3) of the Shared Expenses multiplied by a fraction the numerator of which is
the number of residential units located on Parcel F that have received
certificates of occupancy as of the beginning of the calendar quarter during
which the Shared Expenses in question were incurred, and the denominator of
which is the total number of residential units located within Innisbrook that
have received certificates of occupancy as of the beginning of the calendar
quarter during which the Shared Expenses in question were incurred.  For example, if (i) the Shared Expenses for
a particular period of time was $500,000.00, and (ii) the number of residential
units that have received certificates of occupancy from the beginning of such
period and located on Parcel F was 271 units, and (iii) the total number of
residential units located within Innisbrook that have received certificates of
occupancy as of the beginning of such period was 1,209 units, then the portion
of the Shared Expenses to be borne by the Owners’ Association would be
$74,717.36, or $275.71 per unit (2/3 x $500,000.00 x 271/1,209 = $74,717.36;
$74,717.36 divided by 271 units = $275.71 per unit).  The portion of the Shared Expenses to be borne by the Owners’
Association under this Section 5.6 shall be billed to, and paid by, the
Owners’ Association to Golf Course Owner within thirty (30) days after the
accrual of the same on a quarterly basis.

 

17

 

5.7                               Declaration of Restrictions.  Parcel F Owner shall prepare a declaration
of covenants, conditions and restrictions governing the Parcel F Development
(as amended, the “Parcel F Owner Declaration”. 
The Parcel F Owner Declaration shall be subject to Golf Course Owner’s
prior written approval, in order that Golf Course Owner may ensure that the
Parcel F Owner Declaration complies with this Agreement.  No modification to the Parcel F Owner
Declaration which adversely affects the Golf Course Parcel shall be deemed to
be effective without the prior written consent of the Golf Course Owner.  The Parcel F Owner Declaration shall be
consistent with the restrictions in Exhibit N attached hereto.  The Parcel F Owner Declaration shall be
recorded in the public records of Pinellas County, Florida prior to the
conveyance of the first residential unit within Parcel F to a Retail
Purchaser.  The Parcel F Owner
Declaration shall provide that in the event of a breach by Parcel F Owner or
any other obligor including, without limitation, the Owners’ Association under
this Agreement or the Parcel F Owner Declaration and such breach has not been
cured within thirty (30) days after receipt of a written demand from Golf
Course Owner, Golf Course Owner shall have the right, but not the obligation
and not as an exclusive remedy, to initiate arbitration proceedings by
providing the breaching party with written notice of Golf Course Owner’s
intention to initiate arbitration proceedings to enforce Golf Course Owner’s
rights under this Agreement, including, without limitation, the right to
require (1) the breaching party to pay any amounts owed to and damages incurred
by Golf Course Owner in connection with such breach, and (2) the Owners’
Association to issue a Special Assessment to provide funds to satisfy a
judgment or arbitration award in favor of Golf Course Owner, which arbitration
shall be conducted in accordance with Section 6.11 of this Agreement.  To the extent any terms or provisions of the
Parcel F Owner Declaration conflict with the terms and provisions of this
Agreement, the terms and provisions of this Agreement shall control.  Notwithstanding the foregoing, Golf Course
Owner is a third party beneficiary of the provisions of the Parcel F Owner
Declaration specified on Exhibit N and
has independent standing, without the necessity of initiating arbitration
proceedings to enforce such provisions of the Parcel F Owner Declaration
including the right to seek an injunction and/or money damages against any
parties violating one or more provisions contained in the Parcel F Owner
Declaration if in the reasonable opinion of the Golf Course Owner, such a
violation is adversely affecting the Golf Course Parcel.  In that regard, the Parcel F Owner
Declaration will include a “prevailing party” provision which obligates a non-prevailing
party to pay the legal fees and expenses of the prevailing party in the event
the prevailing party is successful in obtaining an injunction or recovers money
damages against the non-prevailing party.

 

5.8                               Sales Office; Marketing; Code.  Parcel F Owner anticipates creating a sales office within the
real property more particularly described in Exhibit O
(“Parcel J-4”) by virtue of a leasehold interest provided for in the Purchase
Agreement, which sales office will be adjacent to the front secured entrance
gate to the Golf Course Parcel and Innisbrook. 
Before any contemplated use of Parcel J-4, Parcel F Owner will comply
with Golf Course Owner’s reasonable requirements with respect to (a) ingress
and egress to and from Parcel J-4, including, without limitation, security
matters, and (b) Plan and landscaping matters affecting Parcel J-4.  Before Parcel F Owner begins any sales or
marketing activities of residential units within Parcel F, Parcel F Owner shall
execute a mutually acceptable sales and marketing agreement with Golf Course
Owner and/or Golf Course Owner’s separate residential sales and marketing
entity.  Golf Course Owner and Parcel F
Owner shall reasonably cooperate so that telephone calls received by one of
such parties intended for the other party can be directly

 

18

 

transferred to
the other party’s sales office.  Golf
Course Owner and Parcel F Owner shall provide a link to the other party’s
website so long as such party maintains a web site.  On or prior to Parcel F Owner’s commencement of construction of
the Parcel F Development, Golf Course Owner shall initiate and use reasonable
diligence to complete the process of amending the Code to provide that (a) all
residential units, whether in the condominium form of ownership or not, qualify
for full golf memberships in the Club and (b) to modify Article II,
Section 4 of the Code to be consistent with the transferability of the
Club Memberships pursuant to Section 3.3 hereof.

 

5.9                               Shared Stormwater Management System.  Golf Course Owner and Parcel F Owner agree to reasonably
cooperate with one another regarding a shared stormwater management system (the
“System”).  The System will accommodate
a certain amount of drainage from Parcel F and the Golf Course Parcel adjacent
to Parcel F and the System will be located within Parcel F and also within a
portion of the Golf Course Parcel located adjacent to Parcel F, as more
particularly set forth on Exhibit P attached hereto (“Stormwater
Management Parcel”); provided, however, the design and location
of the Stormwater Management Parcel has not been finalized and Exhibit P attached hereto may be modified by Golf Course Owner
and Parcel F Owner.  Golf Course Owner
and Parcel F Owner agree to reasonably cooperate with one another to finalize
the design and location of the Stormwater Management Parcel and Exhibit P; provided, however, that such finalized
Stormwater Management Parcel and Exhibit
P shall not
cause any greater material adverse impact on the Golf Course Parcel than prior
to such modification.  Golf Course Owner
and Parcel F Owner hereby grant each other, a non-exclusive easement over and
across the Stormwater Management Parcel and other parts of the Golf Course
Parcel and Parcel F as necessary for implementing the permitted design, for the
sole and exclusive purposes of construction, maintenance, repair and use of the
System.  The stormwater management
easement described in this Section 5.9 shall be included in the definition
of “Easements,” and the Stormwater Management Parcel shall be included in the
definition of “Easement Parcels,” as used throughout this Agreement.  The cost of the design and construction of
the System, professional fees, governmental permit fees and all other costs
related thereto, shall be the sole cost and expense of Parcel F Owner; provided,
however, that any cost or expense that is pre-approved by Parcel F Owner
and incurred by Golf Course Owner with respect to the foregoing shall be
promptly reimbursed by Parcel F Owner. 
The cost of maintaining the System after the approval and construction
of the same shall be the sole responsibility of Parcel F Owner.

 

5.10                        Parcel F Access Road; Disclaimer.  Golf Course Owner shall
reasonably cooperate with Parcel F Owner so that Parcel F Owner, at its sole
cost and expense, may (i) recommend for Golf Course Owner’s consideration a
name for Parcel F Access Road (provided Golf Course Owner shall have no
obligation hereunder to follow such recommendation whatsoever), and (ii)
install and maintain landscaping and other entry improvements (including one
(1) project identification sign, as described in Section 2.7 of this
Agreement) adjacent to the portion of the Parcel F Access Road adjacent to the
tennis courts.  The Parcel F Owner Declaration,
Parcel F Owner’s form purchase and sale agreement, and Parcel F Owner’s form
deed for the sale of residential units shall include a conspicuous disclaimer
and release of the Parcel F Owner and Golf Course Owner by all Parcel F Unit
Owners (and their invitees and guests) in the event that they or their property
is struck by a golf ball.  The provision
contained in the purchase and sale agreement shall survive the closing.  The provision in the deed shall require the
purchaser’s written acknowledgment of the disclaimer and release.

 

19

 

5.11                        Improvements, Landscaping and Structures.  Golf Course Owner shall have the
right, to install, construct, modify and maintain any and all improvements,
landscaping and structures for, or contained in, the Golf Course Parcel. Such
improvements, landscaping or structures shall not be installed, constructed or
modified with the purpose and intention of materially blocking a Parcel F Unit
Owner’s view from his or her residential unit located in Parcel F of the Golf Course
Parcel, however, such improvements, landscaping or structures may be installed,
constructed modified and maintained for the purpose of improving the golf
course by Golf Course Owner.

 

5.12                        Maintenance
Easement.  Parcel F Owner hereby
declares and grants a non-exclusive easement (“Maintenance Easement”)
appurtenant to the Golf Course Parcel for the lawful use by Golf Course Owner
and the employees, licensees and invitees of Golf Course Owner over and across
such portions of Parcel F that are not improved with vertical improvements (a)
in order to provide access to the System and the drainage pipes and other
drainage facilities that operate as part of the System (collectively, the
“Drainage Facilities”), and those portions of Parcel F adjacent to the Drainage
Facilities, for the purpose of 
maintenance and repair of the Drainage Facilities in the event Parcel F
Owner does not maintain the Drainage Facilities as required pursuant to this
Agreement, and (b) designated by Parcel F Owner and that provide reasonable
access for the Golf Course Parcel maintenance equipment to traverse between
holes 9 and 10 and holes 10 and 14 of the Island Course.  The Maintenance Easement (i) shall continue
in effect, in perpetuity, unless and until such Maintenance Easement is amended
in accordance with Section 6.2 of this Agreement, (ii) shall be an
easement appurtenant to the Golf Course Parcel, and (iii) is being granted on a
non-exclusive basis.  Parcel F Owner
reserves all of its rights to use the Maintenance Easement, including, without
limitation, the right to construct, maintain and use improvements over, across
and under the Maintenance Easement. 
Notwithstanding the foregoing, such use of the Maintenance Easement
shall not unreasonably interfere with the use of the Maintenance Easement by
the Golf Course Owner.  Golf Course
Owner, at its sole cost and expense, shall obtain and maintain during the
entire time this Agreement and the Maintenance Easement granted under this
Agreement shall be in effect, a commercial general liability policy (occurrence
form) (“GTA Insurance”) for personal injury, bodily injury and property damage
occurring to or on the Maintenance Easement and/or Parcel F (except to the
extent such personal injury, bodily injury or property damage arises as a
result of any negligent acts or omissions or willful misconduct of Parcel F
Owner or its guests and invitees) directly as a result of Golf Course Owner’s
use of the Maintenance Easement, which policy shall name Parcel F Owner as an
additional insured.

 

5.13                        Special
Assessment.  Notwithstanding
anything to the contrary contained in this Agreement, the Owners’ Association
shall, in accordance with the Parcel F Owner Declaration (as approved by Golf
Course Owner), promptly issue a legally effective special assessment (“Special
Assessment”) against each Parcel F Unit Owner for such Parcel F Unit Owner’s
proportionate share of any judgment or arbitration award in favor of the Golf
Course Owner.  Each of the Parcel F Unit
Owners shall be obligated to promptly pay any such Special Assessment; provided,
however, that in the event that the Owners’ Association does not
promptly issue such Special Assessment (or the Owners’ Association issues such
Special Assessment and any or all of the Parcel F Unit Owners do not promptly
pay any such Special Assessment) and such breach has not been cured within
thirty (30) days after receipt of a written demand from Golf Course Owner.  Golf Course Owner shall have the right, but
not the

 

20

 

obligation and not
as an exclusive remedy, to initiate arbitration proceedings by providing such
breaching party with written notice of Golf Course Owner’s intention to
initiate arbitration proceedings to enforce Golf Course Owner’s rights under this
Agreement, including, without limitation, the right to require such breaching
party to pay any amounts owed to and damages incurred by Golf Course Owner
under this Agreement in connection with such Special Assessment, which
arbitration shall be conducted in accordance with Section 6.11 of this
Agreement, and in the event a judgment for money damages is awarded to Golf
Course Owner may directly file, or cause the filing of, a lien against all
property owned by such breaching party, including, without limitation all
improvements thereon.

 

ARTICLE VI

GENERAL PROVISIONS

 

6.1                               Severability.  Invalidation of any particular provision of
this Agreement by judgment or court order will not affect any other provision,
all of which will remain in full force and effect.

 

6.2                               Amendment.  This Agreement may be amended only by a
written amendment executed by Golf Course Owner and Parcel F Owner and recorded
in the Public Records of Pinellas County, Florida.

 

6.3                               Interpretation.  Unless the context expressly requires otherwise,
(a) the use of the singular includes the plural, and vice versa; (b) the use of
the term “including” or “include” is without limitation; and (c) the words of
“must”, “will” and “should” have the same legal effect as the word “shall”.  Notwithstanding that the legend on the first
page states that this Agreement was prepared by a particular party, this
Agreement has been extensively negotiated between the parties hereto and was
prepared pursuant to the combined effort of all of the parties and their attorneys.  This Agreement shall not be construed more
strictly against one party or the other. Except as otherwise expressly stated
in this Agreement, Golf Course Owner and Parcel F Owner shall reasonably
cooperate with one another with respect to each of the parties hereto
satisfying their respective obligations under this Agreement.

 

6.4                               Permission.  When any act by any party affected by this
Agreement requires, pursuant to the terms of this Agreement, the permission,
consent or joinder of any party, such permission, consent or joinder unless
otherwise limited in this Agreement shall not be unreasonably withheld, but
shall only be deemed given when it is in written form, executed by such party
or if a written objection is not received by the submitting party within
fifteen (15) days after receipt of the request by the other party.

 

6.5                               Runs
with Land; Cooperation; Estoppel. 
All of the respective rights (other than the Memberships), duties and
the obligations pursuant to this Agreement shall be binding upon the owners of,
and shall run with the title to, the Golf Course Parcel and Parcel F.  A prior title owner shall not have any
obligations or liability for defaults caused by a subsequent title owner;
however, the transfer of title to a subsequent title owner will not relieve any
liabilities or obligations of the transferring title owner incurred by or which
were the responsibility of the transferring title owner while such a party was
the owner.  Notwithstanding the foregoing,
Parcel F Owner shall reasonably cooperate with Golf Course Owner at no cost
to  Parcel F Owner, to attempt to
resolve defaults by subsequent owners (including, without limitation, the
Owner’s Association and any Parcel F Unit Owner) for a period of two years
after the

 

21

 

conveyance by
Parcel F Owner to such subsequent owner. 
Within five (5) days written notice from the requesting party, the
responding party shall supply to the requesting party from time to time an
estoppel certificate, which estoppel certificate shall confirm to the
requesting party as of a certain date that the requesting party is not, to the
actual knowledge of the responding party, in default hereunder.  In the event that the responding party is
unable to confirm to the requesting party as aforesaid, then within five (5)
days of receiving the written request to provide such estoppel certificate the
responding party shall provide to the requesting party a statement of facts
setting forth why the responding party cannot supply such estoppel certificate
to the requesting party.

 

6.6                               Title.  Parcel F Owner shall rely on title
insurance with respect to the status of title to the portions of the Golf
Course Parcel affected by the Easements.

 

6.7                               Liability.  Except as otherwise required by law, no
present, former or future director, officer or employee of Golf Course Owner or
GTA shall be personally liable to Parcel F Owner or to any other third party in
connection with, directly or indirectly, the duties and obligations of Golf
Course Owner and GTA hereunder, and that Golf Course Owner and/or GTA, as
applicable, shall be held solely responsible and liable with respect to the
same.  Except as otherwise required by
law, no present, former or future director, officer or employee of Parcel F
Owner shall be personally liable to Golf Course Owner or GTA or to any other
third party in connection with, directly or indirectly, the duties and
obligations of Parcel F Owner hereunder, and that Parcel F Owner shall be held
solely responsible and liable with respect to the same.

 

6.8                               Default,
Cure Period.  If either party
fails to comply fully with its duties or obligations pursuant to this Agreement
by the due date thereof (“Defaulting Party”) and has not cured the same within
thirty (30) days after receipt of a written demand from the other party (the
“Non-Defaulting Party”), the Non-Defaulting Party may satisfy or elect to
satisfy such obligation and the Defaulting Party shall reimburse the
Non-Defaulting Party or pay directly the reasonable costs paid or incurred by
the Non-Defaulting Party to cure such failure to comply within thirty (30) days
of receiving an itemized list of all such costs, together with interest at the
highest rate permitted by law until such amounts are paid.  In addition to the immediately foregoing
remedies, in the event that the Defaulting Party has not cured its failure to
comply fully with its duties and obligations under this Agreement within thirty
(30) days after receipt of a written demand from the Non-Defaulting Party, the
Non-Defaulting Party shall have the right, but not the obligation and not as an
exclusive remedy, to initiate arbitration proceedings by providing the
Defaulting Party with written notice of the Non-Defaulting Party’s intention to
initiate arbitration proceedings to enforce the Non-Defaulting Party’s rights
under this Agreement, including, without limitation, the right to require the
Defaulting Party to pay any amounts owed to and damages incurred by the
Non-Defaulting Party under this Agreement, which arbitration shall be conducted
in accordance with Section 6.11 of this Agreement and in the event that a
judgment is awarded for money damages, the Non-Defaulting Party may directly
file or cause the filing of a lien against all property owned by the Defaulting
Party including, without limitation, all improvements thereon.  Additionally, in the event of a breach of
Section 5.7, whereby Golf Course Owner’s consent is not obtained prior to
the recordation of the Declaration (or modification thereof), and Golf Course
Owner and shall have the right to seek injunctive relief against the Parcel F
Owner in order to enforce the Parcel F Owner to comply with its obligations
under Section 5.7 of this Agreement. 
Additionally, the

 

22

 

Golf Course Owner
shall have the right to seek injunctive relief or monetary damages against the
Parcel F Owner, the Owner’s Association, or a Parcel F Unit Owner in order to
enforce one or more of those parties to comply with its obligations under
Section 5.7 of this Agreement without resorting to arbitration as
described in Section 5.7, and in the event a party obtains injunctive
relief or monetary damages, the non-prevailing party shall pay for the
prevailing party’s legal fees and expenses.

 

6.9                               Indemnification.  Parcel F Owner and Golf Course Owner shall
indemnify each other against any claims, litigation, losses, costs, damages,
penalties, liabilities and expenses including reasonable attorneys fees and
costs resulting from the other party’s breach of this Agreement.  

 

6.10                        Governing
Law.  This Agreement shall be
governed in all respects by the laws of the State of Florida.  In the event of a default pursuant to this
Agreement, each party shall have the remedies available pursuant to Florida law
and the remedies specified in this Agreement. 
Notwithstanding the foregoing, in the event of a default pursuant to
Section 3.2 hereof, each party’s sole remedy shall be specific performance
and neither party shall have the right to receive damages (including
consequential damages or any other form of damages) from the breach of
Section 3.2.

 

6.11                        Arbitration.  In the event, and only in the event,
that a provision in this Agreement expressly provides that a party hereto has
the right to initiate arbitration proceedings with respect to a claim or
dispute under this Agreement, then such claim or dispute shall be determined by
binding arbitration under the American Arbitration Association Rules for the
Real Estate Industry (“AAA Rules”) in effect on the date of this Agreement,
which AAA Rules to the extent not in conflict with the terms and conditions of
this Agreement shall be deemed to be incorporated by reference into this
Agreement for purposes of this Section 6.11.  The number of arbitrators shall be one (1) and the arbitrator
(who shall be an attorney with at least fifteen (15) years real estate law and
development experience, including substantial golf resort development and
construction experience) shall be independent of each of the parties hereto
(the “Arbitrator”).  The parties hereto
shall mutually designate the Arbitrator within ten (10) business days after the
commencement of the arbitration, with or without the assistance of the American
Arbitration Association’s administrator (the “Administrator”).  When such designation is made, the parties
hereto shall notify the Administrator so that notice of the appointment can be
communicated to the Arbitrator, together with a copy of AAA Rules.  If within ten (10) business days after the
commencement of the arbitration, the parties hereto have not designated an
Arbitrator, the Administrator shall, at the written request of either party,
appoint the Arbitrator within ten (10) business days after such written
request.  In making such an appointment,
the Administrator, after inviting consultation from the parties hereto, shall
select the Arbitrator.  The place of
arbitration shall be at Innisbrook.  The
Arbitrator shall hold the hearing within forty five (45) days of the initial
demand for arbitration, and shall conclude the hearing within ten (10) days
thereafter and issue a written decision within ten (10) days after such
conclusion of the arbitration hearing. 
The foregoing time limits are not jurisdictional, and the Arbitrator may
for good cause permit reasonable extensions or delays.  The Arbitrator shall apply the substantive
laws of the State of Florida.  The
Arbitrator’s decision shall be final and binding and enforceable in any court
of competent jurisdiction.  The parties
to this Agreement hereby waive any right they may have to appeal the
Arbitrator’s decision.  Notwithstanding
anything else contained in this Agreement,

 

23

 

the parties
understand and agree (and represent and covenant that it shall not contest in
any way the following) that in the event that the Arbitrator’s decision
includes an award and such award is not promptly satisfied, then with respect
to such award the prevailing party shall have the right, but not the obligation
and not as an exclusive remedy, to (a) file and record a memorandum of award
against all property owned by the non-prevailing party, including, without
limitation, all improvements thereon, (b) directly file, or cause the filing
of, a lien against all property owned by the non-prevailing party, including,
without limitation, all improvements thereon, and (c) in the case of an award
in favor of Golf Course Owner, the Owners’ Association shall promptly issue a
Special Assessment against each of the Parcel F Unit Owners for their
proportionate share of such obligation (if any).  Additionally, the Golf Course Owner shall have the remedies more
particularly described in Section 5.7 in order to enforce the Parcel F
Owner, the Owner’s Association, or a Parcel F Unit Owner to comply with its
obligations under Section 5.7 of this Agreement without resorting to
arbitration as described in Section 5.7.

 

6.12                        Effectiveness.  This Agreement is immediately effective and
shall remain effective and shall bind and benefit the owners of the Golf Course
Parcel and Parcel F whether or not Parcel F Owner acquires Parcel F.

 

6.13                        Attorneys’
Fees.  In the event of any
controversy, claim or dispute relating to this Agreement or the breach thereof,
the prevailing party shall be entitled to recover from the losing party its
reasonable attorneys’ fees and costs as may be awarded by the court or
arbitration.

 

6.14                        Legal
Authority.  Each of the parties
hereto represent and covenant that: (i) it has the legal authority and right to
enter into this Agreement; (ii) the person executing this Agreement has the
authority to enter into this Agreement on behalf of such party; and (iii)
subject to Section 6.7 of this Agreement, to the best of its knowledge it
has no obligation to any other party which is in conflict with its obligations
under this Agreement.

 

6.15                        Headings.  All headings contained in this Agreement
appear only for convenience and reference. 
They do not define, limit, extend, or describe the scope of this
Agreement or the intent of any of its provisions.

 

6.16                        Counterparts.  This Agreement may be executed in
counterparts, each of which shall be considered an original, and when taken
together shall be considered one instrument.

 

6.17                        Notice.  Any notice required or permitted hereunder
shall be in writing and shall be deemed given as of the date it is (a)
delivered by hand or (b) received by registered or certified mail, postage
prepaid, return receipt requested, or (c) sent by facsimile so long as written
confirmation of receipt is retained by the sender, and addressed to the party
to receive such notice at the address and facsimile number set forth below, or
such other address or facsimile number as it subsequently specified in writing.

 

24

 

	
  If to Parcel F
  Owner:

  	
  Innisbrook F,
  LLC

  
	
   

  	
  One Tampa City
  Center, Suite 2600

  
	
   

  	
  Tampa, FL  33602

  
	
   

  	
  Attention:  Mr. Steven M. Samaha

  
	
   

  	
  Fax: (813)
  228-8091

  
	
   

  	
   

  
	
  With a copy to:

  	
  Williams
  Schifino Mangione & Steady, P.A.

  
	
   

  	
  One Tampa City
  Center, Suite 2600

  
	
   

  	
  Tampa,
  Florida  33602

  
	
   

  	
  Attention:  Lee E. Nelson, Esq.

  
	
   

  	
  Fax: (813)
  221-7335

  
	
   

  	
   

  
	
  If to Golf
  Course Owner:

  	
  Golf Host
  Resorts, Inc.

  
	
   

  	
  591 West Putnam
  Avenue

  
	
   

  	
  Greenwich,
  Connecticut 06830

  
	
   

  	
  Attention:  Mr. Merrick R. Kleeman

  
	
   

  	
  Fax: (203)
  861-2101

  
	
   

  	
   

  
	
  With a copy to:

  	
  Rinaldi,
  Finkelstein and Franklin, LLC

  
	
   

  	
  591 West Putnam
  Avenue

  
	
   

  	
  Greenwich,
  Connecticut 06830

  
	
   

  	
  Attention:  Steve Finkelstein, Esq.

  
	
   

  	
  Fax: (203)
  861-2101

  
	
   

  	
   

  
	
  If to GTA

  	
  Golf Trust of
  America, L.P.

  
	
   

  	
  14 North Adgers
  Wharf

  
	
   

  	
  Charleston,
  South Carolina 29401

  
	
   

  	
  Attention:  Mr. W. Bradley Blair, II

  
	
   

  	
  Fax:  (843) 723-0479

  
	
   

  	
   

  
	
  With a copy to:

  	
  O’Melveny & Myers
  LLP

  
	
   

  	
  275 Battery Street,
  Suite 2600

  
	
   

  	
  San Francisco,
  California 94118

  
	
   

  	
  Attention: Peter T.
  Healy, Esq.

  
	
   

  	
  Fax: (415) 984-8701

  
	
   

  	
   

  
	
  and:

  	
  Parker Poe Adams
  & Bernstein, L.L.P.

  
	
   

  	
  200 Meeting
  Street, Suite 301

  
	
   

  	
  Charleston,
  South Carolina 29401

  
	
   

  	
  Attn: Matthew J.
  Norton, Esq.

  
	
   

  	
  Fax: (843)
  720-8993 or (843) 727-2680

  

 

6.18                        Entire
Agreement.  This Agreement,
together with the exhibits attached hereto, contain the full understanding of
the parties with respect to the matters set forth in this Agreement, and
supersedes all existing agreements and all other oral, written or other
communications between the parties concerning the subject matter hereof.

 

25

 

6.19                        Rights
of GTA.              So
long as GTA (or any successor or assign) holds a mortgage encumbering the Golf
Course Parcel, all rights of Golf Course Owner as the Golf Course Owner
pursuant to this Agreement (including, for example, rights of amendment,
consent or approval) shall also run to the benefit of GTA (or its successor or
assign).

 

26

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement
as of the day and year first above written.

 

	
   

  	
  PARCEL F, LLC, formerly
  known as

  Bayfair Innisbrook, L.L.C., a Florida

  limited liability corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ STEVE SAMAHA

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  STEVE SAMAHA

  	
   

  
	
   

  	
   

  
	
   

  	
  Its: 

  	
  Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLF HOST RESORTS, INC.,

  a Colorado corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT
  GEIMER

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  ROBERT GEIMER

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
  Vice President

  	
   

  
								

 

27

 

The undersigned hereby consents to this Agreement, subject to and in
accordance with, the terms of this Agreement and all of the exhibits thereto.

 

 

	
   

  	
  GOLF TRUST OF AMERICA, L.P.,

  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GTA GP, INC.,

  a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W.
  BRADLEY BLAIR II

  
	
   

  	
  Name: W. Bradley
  Blair, II

  
	
   

  	
  Its:  President and CEO

  
				

 

28Exhibit 10.1

 

WADDELL & REED FINANCIAL INC.

 

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

 

As
Amended and Restated Effective as of July 14, 2004

 

 

WADDELL & REED FINANCIAL, INC.

SUPPLEMENTAL EXECUTIVE
RETIREMENT PLAN

(AS AMENDED AND RESTATED)

 

PURPOSE

 

The purpose of the Waddell & Reed Financial, Inc. Supplemental
Executive Retirement Plan is to provide deferred compensation that otherwise
would be paid currently to a select group of management or highly compensated
employees of Waddell & Reed Financial, Inc. and any subsidiaries or
affiliates of the Company (as defined below) that may adopt this Plan with the
consent of the Board of Directors of the Company.  This Plan is designed to constitute a nonqualified deferred compensation
arrangement.

 

ARTICLE I

DEFINITION OF TERMS

 

The following words and phrases when used
herein, unless the context clearly requires otherwise, will have the following
respective meanings:

 

1.1.  “Administrator”
means the Compensation Committee.

 

1.2.  “Approved Domestic Relations
Order” means a Domestic Relations Order that is determined by the
Administrator, in its sole discretion, to be an Approved Domestic Relations
Order in accordance with the provisions of Section 6.2.

 

1.3.  “Aggregate Contribution
Amount” means the amount, if any, determined by the Compensation
Committee in its sole discretion, to be credited as a Supplemental Executive
Retirement Benefit among Participants’ Deferred Compensation Accounts for a
Plan Year in accordance with the provisions of Section 4.2(b).

 

1.4.  “Base Pay” means a
Participant’s base salary for a Plan Year, excluding extraordinary pay such as
bonuses, commissions, incentive payments, benefits, expense allowances, expense
reimbursements, or income from restricted stock or stock option awards, as designated
by the Compensation Committee in its sole discretion.

 

1.5.  “Claim for Benefits” has the meaning specified in
Section 6.6(a).

 

1.6.  “Code” means the
Internal Revenue Code of 1986, as amended.

 

1.7.  “Company” means
Waddell & Reed Financial, Inc., a Delaware corporation.

 

1.8.  “Compensation Committee” means
the Compensation Committee of the Board of Directors of Waddell & Reed
Financial, Inc.

 

1

 

1.9.  “Deferred Compensation
Account” means the memorandum account established pursuant to
Section 4.1 and maintained for each Participant on the Company’s books and
records.

 

1.10.  “Domestic Relations Order” means a final judgment, decree,
order, or property settlement agreement made pursuant to a state domestic
relations law.

 

1.11.  “Effective Date”
means July 14, 2004.  Prior to
amendment and restatement, the Plan was originally effective December 10,
1998.

 

1.12.  “Employee” means a
common-law employee of the Company or a Participating Employer who is a member
of a select group of management or highly compensated employees.

 

1.13.  “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended.

 

1.14.  “Notice of Denial” has the meaning specified in
Section 6.6(b).

 

1.15.  “401(k) Plan” means
the Waddell & Reed Financial, Inc. 401(k) and Thrift Plan, as such plan may
be amended from time to time, or any similar plan in which a Participating
Employer participates.

 

1.16.  “Participant” means
an Employee who has satisfied the requirements for eligibility under
Article III and is participating in the Plan.

 

1.17.  “Participating Employer”
means a subsidiary or affiliate of the Company that adopts this Plan by a
properly executed document evidencing such intent with the consent of the Board
of Directors of the Company.

 

1.18.  “Plan” means the Waddell & Reed Financial,
Inc. Supplemental Retirement Benefit Plan, as may be amended, modified or
supplemented from time to time.

 

1.19.  “Plan Year” means
the period commencing January 1 and ending December 31.

 

1.20.  “Request for Review” has the meaning specified in
Section 6.6(d).

 

1.21.  “Supplemental Executive
Retirement Benefit” means the allocations, if any, made pursuant to
Section 4.2(b).

 

1.22.  “Total Disability” means
a Participant has satisfied the requirements to receive long-term disability
benefits under the Company’s (or his or her Participating Employer’s) long-term
disability insurance plan.

 

1.23.  “Valuation Date”
means December 31 and such other or additional dates as provided herein or
otherwise designated by the Administrator as Valuation Dates for the purpose of
making valuation adjustments to the Deferred Compensation Accounts in
accordance with Section 4.2(c).

 

2

 

ARTICLE II

ADMINISTRATION

 

The Plan will be administered by the Administrator and benefits under
the Plan will be paid only if the Administrator decides, in its sole
discretion, that a Participant is entitled to them.  The decision of a majority of the members of the Compensation
Committee will control; provided, however, that a member will not be entitled
to participate in discretionary decisions directly related to such person’s own
participation in the Plan.

 

The Administrator will have full power and authority to adopt rules,
regulations, and practices governing the administration of the Plan, to
interpret and apply the provisions of the Plan in its sole discretion, to
alter, amend, or revoke any rules and regulations so adopted, to enter into
contracts on behalf of the Company with respect to the Plan, and to make
discretionary decisions under the Plan, except where that authority is retained
by the Company under the Plan.  The
Administrator will administer this Plan and render decisions in a uniform and
consistent manner so that all Participants in similar circumstances are
generally treated similarly.  The
Administrator’s decision as to all aspects of Plan operations, including but
not limited to, the eligibility of persons to participate in this Plan, the
benefits payable under this Plan, and the interpretation of this Plan, cannot
be overturned unless it has no foundation.

 

ARTICLE III

ELIGIBILITY

 

An Employee who has been designated by the Administrator as eligible
for participation in the Plan will be eligible for participation beginning in
the Plan Year with respect to which the designation is made.  A Participant will continue to participate
in the Plan until he or she ceases to be a member of a select group of
management or highly compensated employees, or until the Administrator in its
sole discretion determines otherwise.

 

ARTICLE IV

DEFERRED COMPENSATION ACCOUNTS

 

4.1.  Establishment of Deferred
Compensation Accounts.  At
the time an Employee becomes a Participant in the Plan, the Company will
establish a Deferred Compensation Account for the Participant on its books.

 

4.2.  Additions to Deferred
Compensation Accounts.

 

(a)                                  401(k) Plan Benefit Restoration.  For each Plan Year, the
Administrator will credit the Deferred Compensation Account of each Participant
with an amount equal to four percent (4%) of his or her Base Pay, less the
amount of any employer matching contribution made or to be made on the
Participant’s behalf under the 401(k) Plan with respect to that Plan Year.

 

3

 

(b)                                 Supplemental Executive Retirement Benefit.  For each Plan Year, the
Compensation Committee will credit the Aggregate Contribution Amount among the
Deferred Compensation Accounts of Participants in proportion to their Base Pay
for the Plan Year.

 

(c)                                  Valuation and Adjustments.  As of each Valuation Date, the Administrator will also
credit (or charge) the Participant’s Deferred Compensation Account with
valuation adjustments determined in accordance with this
Section 4.2(c).  The valuation
adjustment to be credited (or charged) to the Participant’s Deferred
Compensation Account as of any Valuation Date will be an amount equal to the
performance of certain hypothetical investments or investment vehicles since
the last preceding Valuation Date as described below.  The performance of such hypothetical investments or investment
vehicles taken into account for purposes of this Section 4.2(c) will
include, but not be limited to, in the sole discretion of the Administrator,
interest, expenses, and realized and unrealized gains and losses.  The crediting (or charging) of amounts under
this Section 4.2(c) will occur so long as there is a balance in the
Participant’s Deferred Compensation Account; provided, however, the crediting
(or charging) of amounts under this Section 4.2(c) will cease as close as
reasonably practicable (as determined by the Administrator in its sole
discretion) prior to the date a complete distribution of a Participant’s
benefit under this Plan is made.  The
value of the Participant’s Deferred Compensation Account as of the relevant
Valuation Date will be determined as if the balance of the Deferred
Compensation Account as of the preceding Valuation Date, together with any
amounts subsequently credited to such Deferred Compensation Account, had been
invested since the preceding Valuation Date or the date credited to the
Deferred Compensation Account, as the case may be, in the hypothetical
investments or investment vehicles specified for the Participant’s Deferred
Compensation Account.

 

(d)                                 Investments.    Each Participant, in a manner prescribed by
the Administrator, may designate the hypothetical investments or investment
vehicles in which his or her Deferred Compensation Account is to be deemed
invested under the investment options permitted by the Administrator.  Notwithstanding any other provision of this
Plan, a Participant may not designate the hypothetical investment of his or her
Deferred Compensation Account in stock or other securities of the Company or a
Participating Employer.  The
Administrator (or trustee of a grantor trust if a grantor trust is used in
connection with this Plan), in its sole discretion, may determine whether any
Deferred Compensation Accounts will, in fact, be invested according to the
hypothetical investments or investment vehicles or will be invested
otherwise.  Such hypothetical investment
designations may be made up to two times per calendar year for each Participant
by making an election with the Administrator, in a manner prescribed by the
Administrator.  The designation will
continue until changed by the submission of a new designation, which change
will be effective as soon as administratively feasible.

 

4

 

4.3.  Forfeiture.

 

All amounts credited to, and not withdrawn from, a Participant’s
Deferred Compensation Account are nonforfeitable, except as otherwise provided
in this Section 4.3 and Sections 6.1 and 6.4.

 

Notwithstanding any other provision of this Plan, a Participant’s
Deferred Compensation Account will be forfeited in its entirety if the
Administrator determines that the Participant has engaged in any activity that
is (a) illegal and involves fraud, dishonesty, or theft, or (b) intentionally
detrimental to the Company, a Participating Employer, or any subsidiary or
affiliate thereof.

 

ARTICLE V

DISTRIBUTION OF BENEFITS

 

5.1.  Distribution on Termination of
Employment.  Unless otherwise
elected pursuant to Section 5.4, amounts credited to, and not withdrawn
from, a Participant’s Deferred Compensation Account (less applicable tax and
other withholdings pursuant to Section 5.6) will be distributed in a
single lump sum payment in cash, other property, or both, in the
Administrator’s sole discretion, within 90 days after the Participant’s termination
of employment with the Company or, if applicable, the Participating Employer.

 

5.2.  Distribution on Total
Disability.  Unless otherwise
elected pursuant to Section 5.4, amounts credited to, and not withdrawn
from, a Participant’s Deferred Compensation Account (less applicable tax and
other withholdings pursuant to Section 5.6) as of the date the Participant
has sustained a Total Disability will be distributed in a single lump sum
payment in cash, other property, or both, in the Administrator’s sole discretion,
within 90 days after such determination.

 

5.3.  Distribution on Death.  Unless otherwise elected pursuant
to Section 5.4, payment of the amounts credited to, and not withdrawn
from, a Participant’s Deferred Compensation Account (less applicable tax and
other withholdings pursuant to Section 5.6) as of the date of the
Participant’s death will be distributed in a single lump sum payment in cash,
other property, or both, in the Administrator’s sole discretion, within 90 days
after the Participant’s death, to the Participant’s designated beneficiary in
accordance with the last such designation received by the Administrator, or if
none, to the Participant’s surviving spouse, or if there is no surviving
spouse, to the personal representative of the Participant’s estate.

 

A Participant will have the right, at any time prior to his or her
death, to submit, in a manner prescribed by the Administrator, a written
designation of primary and secondary beneficiaries to whom payment under this
Plan will be made in the event of his or her death prior to complete
distribution of the benefits due and payable to the Participant under this
Plan.  Each beneficiary designation will
become effective only when received by the Administrator.

 

5.4.  Form of Benefit Distribution.  A Participant or beneficiary, in
a manner prescribed by the Administrator, may elect the form and timing,
subject to the Administrator’s approval, of distribution of his or her benefits
and may revoke that election (with or without a new election)

 

5

 

at any time at least 30 days before his or her payments begin or are
scheduled to begin, by notifying the Administrator in writing of his or her
election.

 

A Participant or beneficiary may elect distributions of benefits in one
of the following forms:

 

(a)                                  Lump Sum  —
a single payment of the entire balance in the Participant’s Deferred
Compensation Account, payable as of a date specified in the election, which
date may not be later than the date the Participant attains (or would have
attained) age 65.

 

(b)                                 Installments — periodic payments over a specified
period of time, beginning as of a date specified in the election, which date
may not be later than the date the Participant attains (or would have attained)
age 65, and which time period may not extend beyond the life expectancy of the
Participant or beneficiary as determined under the 1983 Group Annuity Mortality
Table or such other mortality table prescribed by the Internal Revenue Service
as the prevailing commissioners’ standard table described in Code
section 807(d)(5)(A), as determined by the Administrator in its sole
discretion.

 

5.5.  Incapacity.  In the event of the Participant’s
incapacity (as determined by the Administrator), payment pursuant to Sections
5.1 through 5.3 will be made to the Participant, to the legal guardian or
conservator of the Participant, or to an adult with whom the Participant
maintains his or her residence, as the Administrator in its sole discretion
will determine.  Such payment to a legal
guardian, conservator, or adult will fully discharge the Administrator, the
Company, each Participating Employer, and this Plan from further liability on
account thereof.

 

5.6.  Withholding.  The Company may withhold or cause to be
withheld from, or with respect to, any benefit under this Plan any federal,
state, or local taxes required by law to be withheld with respect to such
benefit and such sum as the Company may reasonably estimate as necessary to
cover any taxes for which the Company may be liable and which may be assessed
with regard to such payment.

 

ARTICLE VI

GENERAL PROVISIONS

 

6.1.  Non-Transferability of
Interests.  Notwithstanding
any other provision of this Plan, all Deferred Compensation Accounts maintained
by the Company will be general assets of the Company and will be subject to the
claims of such Employer’s general creditors.

 

Except as provided in Section 6.2, benefits payable to
Participants under this Plan may not in any manner be anticipated, assigned
(either at law or in equity), alienated, sold, transferred, pledged,
encumbered, or subjected to attachment, garnishment, levy, execution, or other
legal or equitable process by creditors of the Participant.

 

6

 

6.2.  Domestic Relations Orders.

 

(a)                                  The
Administrator shall establish written procedures to determine whether any
Domestic Relations Order directed to this Plan is an Approved Domestic Relations Order in its sole discretion.  To the extent required under an Approved Domestic
Relations Order, any portion of a Participant’s Deferred Compensation Account
may be paid or set aside for payment to a spouse, former spouse, or child of
the Participant in cash, other property, or both, in the Administrator’s sole
discretion.

 

(b)                                 Where
necessary to carry out the terms of an Approved Domestic Relations Order, a
separate account may be established with respect to the spouse, former spouse,
or child.  Any amount so set aside for a
spouse, former spouse, or child shall be paid out in a single lump sum payment
in cash, other property, or both, in the Administrator’s sole discretion, at
the earliest date that benefits may be paid to the Participant, unless the
Domestic Relations Order directs a different form of payment.  Nothing in this Section 6.2 shall be
construed to authorize any amount to be distributed under this Plan at a time
or in a form that is not permitted under ERISA or the Code.

 

(c)                                  A
Participant’s right to receive benefits under this Plan will be reduced to the
extent that any portion of a Participant’s Deferred Compensation Account has
been paid or set side for payment to a spouse, former spouse, or child pursuant
to an Approved Domestic Relations Order or to the extent that the Company, a
Participating Employer, or the Plan is otherwise subject to a binding Domestic
Relations Order for the attachment, garnishment, or execution or any portion of
the Participant’s Deferred Compensation Account or of any distributions
therefrom.  The Participant shall be
deemed to have released the Company, each Participating Employer, the
Administrator, and the Plan from any claim with respect to such amounts in any
case in which (1) the Company, a Participating Employer, the Plan, or any Plan
representative has been served with legal process or otherwise joined in a
proceeding relating to such amounts, (2) the Participant has been notified of
the pendency of such proceeding in the manner prescribed by the law of the
jurisdiction in which the proceeding is pending for service of process or by mail
from the Company, a Participating Employer, the Plan, or a Plan representative
to the Participant’s last known mailing address, and (3) the Participant fails
to obtain an order of the court in the proceeding relieving the Company, each
Participating Employer, the Administrator, or this Plan from the obligation to
comply with the Domestic Relations Order.

 

(d)                                 Neither
the Company, any Participating Employer, the Plan, nor any Plan representative
will be obligated to incur any cost to defend against or set aside any Domestic
Relations Order relating to the division, attachment, garnishment, or execution
of the Participant’s Deferred Compensation Account or of any distribution
therefrom.  Notwithstanding the foregoing,
if the Company, a Participating Employer, the Plan, or a Plan representative is
joined in any such proceeding, a Plan representative will take such steps as it
deems necessary and appropriate to protect the terms of the Plan.

 

7

 

6.3.  Amendment, Suspension, and
Termination.  The Company, in
its sole discretion, at any time may amend, suspend, or terminate this Plan or
any portion thereof in any manner and to any extent.  Such amendment, suspension, or termination of the Plan will be
final and binding on each Participating Employer.  No amendment, suspension, or termination will alter or impair any
then existing Deferred Compensation Accounts. 
Upon termination of the Plan, amounts credited to each Participant’s
Deferred Compensation Account will be distributed at the Administrator’s
election (provided such election applies uniformly to all such Participants) in
a single lump sum payment (in cash, other property, or both, at the
Administrator’s election) either (a) at any time after 30 days following the
termination of the Plan, or (b) at such time and in such event as are otherwise
provided under the Plan.

 

6.4.  Unfunded Obligation.  This Plan is intended to be, and will be
operated and administered so as to be, a plan that is unfunded and maintained
primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees. 
Neither the Company nor any Participating Employer will make any
provision for funding or insuring the Deferred Compensation Accounts that would
cause the Plan to be (a) a “funded” plan for purposes of Section 404(a)(5)
of the Code or Title I of ERISA, or (b) other than an “unfunded and unsecured
promise to pay money or property in the future” under Treasury Regulations
Section 1.83-3(e).  A Participant
will be treated as a general, unsecured creditor of the Company and, if
applicable, his or her Participating Employer at all times under the Plan.  This Plan constitutes a mere promise by the
Company to make the benefit payments as provided in the future.  It is the intention of the Company that the
Deferred Compensation Accounts be unfunded for tax purposes and for purposes of
Title I of ERISA.

 

The foregoing notwithstanding, the Company may establish a grantor
trust described in Treasury Regulation Sections 1.677(a)-(d) to accumulate
assets to pay the Deferred Compensation Accounts, provided that the trust
assets will be subject to the claims of the Company’s general creditors and
will be required to be used to satisfy the claims of the Company’s general
creditors in the event the Company or a Participating Employer is “insolvent”
under the terms of such trust.

 

6.5.  No Right to Employment or
Other Benefits.  Nothing
contained herein will be construed as conferring upon any Participant the right
to continue in the employ of the Company or any Participating Employer.  Any compensation deferred and any benefits
paid under this Plan will be disregarded in computing benefits under any
employee benefit plan of the Company or any Participating Employer.

 

6.6.  Claims Procedures.

 

(a)                                  In
the event benefits provided under this Plan are not timely paid, any
Participant or, if the Participant is deceased, the Participant’s designated
beneficiary, may file a claim requesting benefits under this Plan by submitting
to the Administrator (or such officer or agent of the Company as the
Administrator may designate for such purpose) a written statement setting out
the general nature of the claim (the “Claim for Benefits”).

 

8

 

(b)                                 If
a duly submitted Claim for Benefits has not been granted within 90 days of the
submission of the claim, the Claim for Benefits will be deemed denied for the
purposes hereof.  If a duly submitted
Claim for Benefits is wholly or partly denied, written notice of the denial
(the “Notice of Denial”) will be furnished as provided in Section 6.6(c)
hereunder to the Participant within 90 days after receipt of the Claim for
Benefits by the Administrator.  .

 

(c)                                  Any
Notice of Denial provided to a Participant shall set forth in a manner
reasonably calculated to be understood by the Participant:

 

(1)                                  The
specific reason or reasons for the denial;

 

(2)                                  Reference
to the specific Plan provisions on which the denial is based;

 

(3)                                  A
description of any additional material or information necessary for the
Participant to perfect the Claim for Benefits and an explanation of why such
material or information is necessary; and

 

(4)                                  A
description of the Plan’s review procedures and the time limits applicable to
such procedures, including a statement of the Participant’s right to bring a
civil action under Section 502(a) of ERISA following denial of the Claim
for Benefits or Request for Review (as defined below).

 

(d)                                 Within
60 days after receipt of any Notice of Denial as herein provided, the
Participant may request review of the denied Claim for Benefits by submitting a
written request therefor to the Administrator (the “Request for Review”).

 

(e)                                  Upon
submission of the Request for Review, and before issuance of the decision on
review, the Participant will be provided, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other
information relevant, in the Administrator’s sole discretion, to the Participant’s
Claim for Benefits.

 

(f)                                    Within
30 days after submission of the Request for Review, the Participant may submit
written comments, documents, records, and other information relating to the
Claim for Benefits to the Administrator. 
In addition, upon request of the Participant, or upon its own motion,
the Administrator may, but will not be required to, provide the Participant an
opportunity for a hearing before the Administrator.

 

(g)                                 Within
60 days after receipt of a Request for Review, the Administrator will render
its decision unless special circumstances (such as the need to hold a hearing)
require an extension of time for processing the Request for Review and the
Administrator furnishes written notice of the extension to the Participant, in
which case a decision will be rendered as soon as possible, but in no event
later than 120 days after receipt of the Request for Review.

 

9

 

(h)                                 The
decision on review will be in writing and will include:

 

(1)                                  Specific
reasons for the decision, written in a manner reasonably calculated to be
understood by the Participant;

 

(2)                                  Reference
to the specific Plan provisions on which the decision is based;

 

(3)                                  A
statement that the Participant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the Participant’s Claim for Benefits;

 

(4)                                  A
statement describing any voluntary appeal procedures offered by the Plan; and

 

(5)                                  A
statement of the Participant’s right to bring an action under
Section 502(a) of ERISA.

 

6.7.  Inurement.  This Plan will be binding upon and inure to
the benefit of the Company, each Participating Employer, their successors and
assigns, the Participant, and his or her heirs, executors, personal
representatives, administrators and beneficiaries.

 

6.8.  Notice.  Any notice, consent, or demand required or
permitted to be given under the provisions of this Plan will be in writing, and
will be signed by the party giving or making the same.  If such notice, consent, or demand is mailed
to a party pursuant hereto, it will be sent by United States certified mail,
postage prepaid, addressed to such party’s last known address as shown in the
records of the Company.  The date of
such mailing will be deemed the date of notice, consent, or demand.  Either party may change the address to which
notice is to be sent by giving notice of change of address in the manner
aforesaid.

 

6.9.  Governing Law.  This Plan, and the rights of the parties
hereunder, will be governed by and construed in accordance with the laws of the
State of Kansas, without reference to the principles of conflict of laws.

 

6.10.  Taxation.  This Plan is intended to provide
tax-deferred benefits under certain provisions of the Code.  Upon any Internal Revenue Service finding
that compensation intended to be deferred for federal income tax purposes
pursuant to this Plan is immediately taxable to a Participant for such
purposes, the Company may, but shall not be required to, amend this Plan to
comply with the Internal Revenue Service requirements necessary to achieve the
desired federal income tax benefits relating to this Plan.  Notwithstanding the foregoing, each
Participant agrees to be liable for any tax that may be imposed by the Internal
Revenue Service or any other taxing entity with respect to any benefits
provided pursuant to this Plan (including, without limitation, any and all
withholding taxes), irrespective of whether such tax consequences were intended
pursuant to this Plan.

 

10

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