Document:

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Exhibit 10.4

Flexible Nonstandardized Safe Harbor 401(k) Profit Sharing Plan
ADOPTION AGREEMENT

                             SECTION 1. EMPLOYER INFORMATION

Name of Employer Eastern Resorts Company, LLC

Address    115 Long Wharf

City   Newport                                            State
    ------------------------------------------------------
RI                                                    Zip ________02840
Telephone          401-845-0100           Employer's Federal Tax Identification Number                       05-0480559
         --------------------------------------------------------------------------------------------------------------

Type of Business (Check only one)   Sole Proprietorship     Partnership       C

Corporation             S Corporation

       Other (Specify) Limited Liability Company

------------------------------------------------

    Check here if Related Employers may participate in this Plan and attach a
    Related Employer Participation Agreement for each
          Related Employer who will participate in this Plan.

Business Code_____________

Name of Plan            Eastern Resorts Company LLC Tax Deferred Savings Plan

Name of Trust (if different from Plan name)
             ------------------------------

Plan                    Sequence Number 001 (Enter 001 if this is the first
                        qualified plan the Employer has ever maintained, enter
                        002 if it is the
                        second, etc.)

Trust Identification Number (if
applicable)                                           Account
---------------------------------------------------------------------------
Number (Optional)___________________
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                                       SECTION 2. EFFECTIVE DATES
                                         Complete Parts A and B
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
         General Effective Dates (Check and Complete Option 1 or 2):
         Option 1: This is the initial adoption of a profit sharing plan by the
Employer.
                                     The Effective Date of this Plan
         is                                     .
         ----------------------------------------
NOTE: The effective date is usually the first day of
         the Plan Year in which this Adoption Agreement
Part A.                                                  is signed.
          Option      2: This is an amendment and restatement of an existing
                      profit sharing plan (a Prior Plan).
                                      The Prior Plan was initially effective on
                                      06-01-1995 The Effective Date of this
                                      amendment and restatement
                      is        01-01-2000   .
                           ------------------
                                     NOTE:   The effective date is usually the first day of
         the Plan Year in which this Adoption Agreement
                                     is signed.
Part B.  Commencement of Elective Deferrals:
         Elective Deferrals may commence on       01-01-2000      .
                                              ---------------------
         NOTE:  This date may be no earlier than the date this Adoption Agreement is signed
         because Elective Deferrals cannot be made retroactively.

                                    SECTION 3. RELEVANT TIME PERIODS
                                       Complete Parts A through C
------------------------------------------------------------------------------------------------

<PAGE>

Part A.    Employer's Fiscal Year:
           The Employer's fiscal year ends (Specify month and date)     12-31
Part B.     Plan Year Means:

      Option 1: The 12-consecutive month period which coincides with the
Employer's fiscal year.

      Option 2: The calendar year.

      Option 3: Other 12-consecutive month period (Specify) NOTE: If no option
is selected, Option 1 will be deemed to he selected. If the initial Plan Year is
less than 12 months (a short Plan Year) specify such Plan Year's beginning and
ending dates

<PAGE>

Exhibit 10.4

Part C.    Limitation Year Means:
                    Option 1:                   ?   The Plan Year.
                    Option 2:                   ?   The calendar year.
                    Option 3:                   ?   Other 12-consecutive month period
                   (Specify)
                    NOTE:   If no option is selected, Option 1 will be deemed to be
                selected.

Part D.    Measuring Period For Vesting:
                    Years of Vesting Service shall be measured over the
following 12-consecutive month period:
                    Option 1:                ?     The Plan Year.
                    Option 2:                ?   The 12-consecutive month period
                     commencing with the Employee's Employment Commencement Date
                                                        and each successive 12-month
                     period commencing on the anniversaries of the Employee's Employment
                                                        Commencement Date.
         NOTE:  If no option is selected, Option 2 will be deemed to be selected.
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                           SECTION 4. ELIGIBILITY REQUIREMENTS
------------------------------------------------------------------------------------------
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Complete Parts A through G
------------------------------------------------------------------------------------------
Part A.    Years of Eligibility Service Requirement:
          1. Elective Deferrals.
             An Employee will be eligible to become a Contributing Participant
             in the Plan (and thus be eligible to make Elective Deferrals) and
             receive Matching Contributions (including Qualified Matching
             Contributions, if applicable) after completing (enter 0, 1 or any
             fraction less than 1) Years of Eligibility Service.
          2. Employer Profit Sharing Contributions.
             An Employee will be eligible to become a Participant in the Plan
             for purposes of receiving an allocation of any Employer Profit
             Sharing Contribution made pursuant to Section 10 of the Adoption
             Agreement after completing
                  1     (enter 0, 1, 2 or any fraction less than 2) Years of Eligibility
------------------------
             Service.
         NOTE: If more than 1 year is selected for Item 2, the immediate 100%
         vesting schedule of Section 12 will automatically apply for
         contributions described in such item. If either item is left blank, the
         Years of Eligibility Service required for such item will be deemed to
         be 0. If a fraction is selected, an Employee will not be required to
         complete any specified number of Hours of Service to receive credit for
         a fractional year. If a single Entry Date is selected in Section 4,
         Part G for an item, the Years of Eligibility Service required for such
         item cannot exceed 1.5 (.5 for Elective Deferrals).

Part B.    Age Requirement:
          1. Elective Deferrals.
             An Employee will be eligible to become a Contributing Participant
             (and thus be eligible to make Elective Deferrals) and receive
             Matching Contributions (including Qualified Matching Contributions,
             if applicable) after attaining age 21 (no more than 21).
         2.  Employer Profit Sharing Contributions.
             An Employee will be eligible to become a Participant in the Plan
             for purposes of receiving an allocation of any Employer Profit
             Sharing Contribution made pursuant to Section 10 of the Adoption
             Agreement after attaining age 21 (no more than 21).
         NOTE: If either of the above items in this Section 4, Part B is left
         blank, it will be deemed there is no age requirement for such item. If
         a single Entry Date is selected in Section 4, Part G for an item, no
         age requirement can exceed 20.5 for such item.

Part C.    Employees Employed As Of Effective Date:
          Will all Employees employed as of the Effective Date of this Plan who have not
          otherwise met the requirements of Part A or Part B above be considered to have
          met those requirements as of the Effective Date?      ?   Yes      ?  No
         NOTE:  If a box is not checked in this Section 4, Part C, "No"  will be deemed
to be selected.

Part D.    Exclusion of Certain Classes of Employees:
          All Employees will be eligible to become Participants in the Plan except:
          a.        X   Those Employees included in a unit of Employees covered by a
                collective bargaining agreement between the Employer and
                Employee representatives, if retirement benefits were the
                subject of good faith bargaining and if two percent or less of
                the Employees who are covered pursuant to that agreement are
                professionals as defined in Section 1.410(b)-9 of the
                regulations. For this purpose, the term "employee
                representatives" does not include any organization more than
                half of whose members are Employees who are owners, officers, or
                executives of the Employer.
          b.    X Those Employees who are non-resident aliens (within the
                meaning of Section 7701(b)(l)(B) of the Code) and who received
                no earned income (within the meaning of Section 91 l(d)(2) of
                the Code) from the Employer which constitutes income from
                sources within the United States (within the meaning of Section
                861(a)(3) of the Code)
          c.        ?    Those Employees of a Related Employer that has not executed a
Related Employer Participation Agreement.
                      d.       X    Other (Define)      Leased Employers
                                                  ----------------------

<PAGE>

Part E.      Election Not To Participate:

          May an Employee or a Participant elect not to participate in this Plan
          pursuant to Section 2.08 of the Plan?
                     Option 1:   ?    Yes.
                     Option 2:   ?   No.
         NOTE:  If no option is selected, Option 2 will be deemed to be selected.

Part F.     Hours Required For Eligibility Purposes:

          1.       1000        Hours of Service (no more than 1,000) shall be required to
             -----------------
             constitute a Year of Eligibility Service.
          2.       500         Hours of Service (no more than 500 but less than the
            -------------------
            number specified in Section 4, Part F, Item 1, above) must be exceeded to
            avoid a Break in Eligibility Service.
          3. For purposes of determining Years of Eligibility Service, Employees shall be
             given credit for Hours of Service with the following predecessor
             employer(s): (Complete if applicable)

Part G.     Entry Dates:

          The Entry Dates for participation shall be (Choose one):
          Option 1:      ?   The first day of the Plan Year and the first day of the
seventh month of the Plan Year.
                         Option 2:      ?     Other (Specify)   January l, April l, July
                                                                ------------------------
1, and October 1

         NOTE: If no option is selected, Option 1 will be deemed to be selected.
         Option 2 can be selected only if the eligibility requirements and Entry
         Dates are coordinated such that each Employee will become a Participant
         in the Plan no later than the earlier of: (1) the first day of the Plan
         Year beginning after the date the Employee satisfies the age and
         service requirements of Section 410(a) of the Code; or (2) 6 months
         after the date the Employee satisfies such requirements.

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                    SECTION 5. METHOD OF DETERMINING SERVICE
                              Complete Part A or B
----------------------------------------------------------------------------------------------

<PAGE>

Part A.    Hours of Service Equivalencies:

         Service will be determined on the basis of the method selected below.
         Only one method may be selected. The method selected will be applied to
         all Employees covered under the Plan. (Choose one):
         Option 1:      ?      On the basis of actual hours for which an Employee is paid
         or entitled to payment.
         Option 2:      ?     On the basis of days worked. An Employee will be credited
                     with 10 Hours of Service if under Section 1.24 of the Plan
                     such Employee would be credited with at least l Hour of
                     Service during the day.
         Option 3: ? On the basis of weeks worked. An Employee will be credited
with 45 Hours of Service if under Section 1.24 of the Plan such Employee would
be credited with at least l Hour of Service during the week.
         Option      4: ? On the basis of months worked. An Employee will be
                     credited with 190 Hours of Service if under Section 1.24 of
                     the Plan such Employee would he credited with at least l
                     Hour of Service during the month.
         NOTE: If no option is selected, Option l will be deemed no be selected.
            This Section 5, Part A will not apply if the Elapsed Time Method of
            Section 5, Part B is selected.

Part B.    Elapsed Time Method:

         In lieu of tracking Hours of Service of Employees, will the elapsed time method
         described in Section 2.07 of the Plan be used? (Choose one)
         Option 1:    ?  No.
         Option 2:    ?  Yes.
          NOTE:If no option is selected, Option l will be deemed no be selected.

<PAGE>

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                          SECTION 6. ELECTIVE DEFERRALS
------------------------------------------------------------------------------------------

Part A.     Authorization of Elective Deferrals:

          Will Elective Deferrals be permitted under this Plan? (Choose one)
          Option 1:    ?    Yes.
          Option 2:    ?   No.
          NOTE:If no option is selected, Option l will be deemed to be selected.
         Complete the remainder of Section 6 only if Option l is selected.

Part B.     Limits on Elective Deferrals:

          If Elective Deferrals are permitted under the Plan, a Contributing
         Participant may elect under a salary reduction agreement to
          have his or her Compensation reduced by an amount as described below (Choose
         one):
         Option 1:      ?     An amount equal to a percentage of the Contributing
                     Participant's Compensation from 1 % to 15% in increments of
         1 %. Option 2: ? An amount of the Contributing Participant's
         Compensation not less than and not more than__________. The amount of
         such reduction shall be contributed to the Plan by the Employer on
         behalf of the Contributing Participant. For any taxable year, a
         Contributing Participant's Elective Deferrals shall not exceed the
         limit contained in Section 402(g) of the Code in effect at the
         beginning of such taxable year.

Part C.    Elective Deferrals Based on Bonuses:

         Instead of or in addition to making Elective Deferrals through payroll
         deduction, may a Contributing Participant elect to contribute to the Plan, as an
         Elective Deferral, part or all of a bonus rather than receive such bonus in
         cash? (Choose one)
         Option 1:      ?      Yes.
         Option 2:      ?      No.
         NOTE:  lf no option is selected, Option 2 will be deemed to be selected.

Part D.    Return As A Contributing Participant After Ceasing Elective Deferrals:

         A Participant who ceases Elective Deferrals by revoking a salary
         reduction agreement may return as a Contributing Participant as of such
         times established by the Plan Administrator in a uniform and
         nondiscriminatory manner.

Part E.    Changing Elective Deferral Amounts:

         A Contributing Participant may modify a salary reduction agreement to
         prospectively increase or decrease the amount of his or her Elective
         Deferrals as of such times established by the Plan Administrator in a
         uniform and nondiscriminatory manner.

Part F. Claiming Excess Elective Deferrals:

         Participants who claim Excess Elective Deferrals for the preceding
         calendar year must submit their claims in writing to the Plan
         Administrator by (Choose one):

         Option 1:    ?   March 1.
          Option 2: ? Other (Specify a date not later than April 15) NOTE: If no
         option is selected, Option l will be deemed no be selected.

<PAGE>

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                        SECTION 7. MATCHING CONTRIBUTIONS
------------------------------------------------------------------------------------------

Part A.    Authorization of Matching Contributions:

         Will the Employer make Matching Contributions to the Plan on behalf of
         Qualifying Contributing Participants? (Choose one)
                     Option 1:   ?  Yes, but only with respect to a Contributing
Participant's Elective Deferrals.
                     Option 2:   ?  Yes, but only with respect to a Participant's
Nondeductible Employee Contributions.
                     Option 3:   ?  Yes, with respect to both Elective Deferrals and
Nondeductible Employee Contributions.
         Option 4:   ?  No.

         NOTE: lf no option is selected, Option 4 will be deemed to be selected. Complete
         the remainder of Section 7 only if Option 1, 2 or 3 is selected.

Part B.    Matching Contribution Formula:

         lf the Employer will make Matching Contributions, then the amount of
         such Matching Contributions made on behalf of a Qualifying Contributing
         Participant each Plan Year shall be (Choose one):

         Option 1:      ?     An amount equal to _______                     % of such
                                                        ---------------------
                     Contributing Participant's Elective Deferral (and/or Nondeductible
                     Employee Contribution, if applicable).

<PAGE>

Option 2:     ?    An amount equal to the sum of _______ % of the portion of such
Contributing Participant's Elective
            Deferral (and/or Nondeductible Employee Contribution, if applicable)
            which does not exceed _______ % of the Contributing Participant's
            Compensation plus_______ % of the portion of such Contributing
            Participant's
                           Elective Deferral (and/or Nondeductible Employee Contribution,
if applicable) which exceeds            . % of
                             -----------
                           the  Contributing Participant's Compensation.
Option 3:     ?      Such amount, if any, equal to that percentage of each Contributing
Participant's Elective Deferral (and/or
                           Nondeductible Employee Contribution, if applicable) which the
Employer,                  in its sole discretion, determines from year to year.
 Option 4:    ?      Other formula.  (Specify)    25% up to the first 6% of a
                                               ------------------------------
Contributing Participant's Elective
                                                                        Deferrals

<PAGE>

         NOTE: If Option 4 is selected, the formula specified can only allow
         Matching Contributions to be made with respect to a Contributing
         Participant's Elective Deferrals (and/or Nondeductible Employee
         Contribution, if applicable).

Part C. Limit on Matching Contributions:

         Notwithstanding the Matching Contribution formula specified above, no
         Matching Contribution will be made with respect to a Contributing
         Participant's Elective Deferrals (and/or Nondeductible Employee
         Contributions, if applicable) in excess of _______________ or 6% of
         such Contributing Participant's Compensation.

<PAGE>

Exhibit 10.4

<PAGE>

Part D.    Qualifying Contributing Participants:

         A Contributing Participant who satisfies the eligibility requirements
         described in Section 4 will be a Qualifying Contributing Participant
         and thus entitled to share in Matching Contributions for any Plan Year
         only if the Participant is a Contributing Participant and satisfies the
         following additional conditions (Check one or more Options):

<PAGE>

Option 1:     X  No Additional Conditions.
Option 2: ? Hours of  Service  Requirement.  The  Contributing  Participant  completes  at
least ________                  Hours of
             - -----------------
                         Service  during the Plan Year.  However,  this  condition will be
waived for the following reasons
                        (Check at least one):
                               ?  The Contributing Participant's Death.
                               ?   The   Contributing    Participant's    Termination   of
Employment after having incurred a Disability.
                               ? The Contributing  Participant's Termination of Employment
after having reached Normal Retirement
                                   Age.
                          ? This condition will not be waived.
Option3:  ? Last Day  Requirement.  The  Participant  is an  Employee  of the  Employer on
the last day of the Plan Year.
                         However,  this condition will be waived for the following reasons
(Check at least one):

<PAGE>

                                 ?  The Contributing Participant's Death.
                                 ?   The   Contributing   Participant's   Termination   of
           Employment after having incurred a Disability.
                                 ?   The   Contributing   Participant's   Termination   of
                Employment after having reached Normal Retirement
                                      Age.
                           ?  This condition will not be waived.
         NOTE:  lf no option is selected, Options l will be deemed to be selected.

                                        SECTION 8. QUALIFIED NONELECTIVE CONTRIBUTIONS

Part A.    Authorization of Qualified Nonelective Contributions:

         Will the Employer make Qualified Nonelective Contributions to the Plan? (Choose
         One)
         Option 1:   ?  Yes.
         Option 2:   ?  No.
         lf the Employer elects to make Qualified Nonelective Contributions,
         then the amount, if any, of such contribution to the Plan for each Plan
         Year shall be an amount determined by the Employer. NOTE: If no option
         is selected, Option l will be deemed to be selected. Complete the
         remainder of Sections 8 only if Options l is selected.

Part B.     Participants Entitled to Qualified Nonelective Contributions:

         Allocation of Qualified Nonelective Contributions shall be made to the
         Individual Accounts of (Choose one):
          Option 1:    ?   Only Participants who are not Highly Compensated Employees.
          Option 2:    ?  All Participants.
           NOTE:  If no option  is selected, Options l will be deemed to be selected.

Part C. Allocation of Qualified Nonelective Contributions:

         Allocation of Qualified Nonelective Contributions to Participants
         entitled thereto shall be made (Choose one):
                      Option 1:      ?   In the ratio which each Participant's
            Compensation for the Plan Year bears to the total Compensation of all
                                               Participants for such Plan Year.
                                                                    -
                      Option 2:     ?  In the ratio which each Participant's Compensation
                                                                       not in excess of
                                                                       for the Plan Year
                              bears to the total Compensation of all Participants not in
                                                                 excess of    for such
                                                                          ----
                                                                 Plan Year.
                     NOTE:  If no option  is selected, Options l will be deemed to be
selected.

<PAGE>

Exhibit 10.4

<PAGE>

                   SECTION 9. QUALIFIED MATCHING CONTRIBUTIONS

Part A. Authorization of Qualified Matching Contributions:

         Will the Employer make Qualified Matching Contributions to the Plan on behalf of
         Qualifying Contributing Participants? (Choose One)
         Option 1:      ?   Yes, but only with respect to a Contributing Participant's
         Elective Deferrals.
         Option 2:      ?  Yes, but only with respect to a Participant's Nondeductible
         Employee Contributions.
         Option 3:      ?  Yes, with respect to both Elective Deferrals and Nondeductible
         Employee Contributions.
         Option 4:      ?  No.
         NOTE:  lf no option is selected, Option 3 will be deemed to be selected.
         Complete the remainder of Section 9 only if Option 1, 2 or 3 is selected.

Part B.    Qualified Matching Contribution Formula:

         lf the Employer will make Qualified Matching Contributions, then the
         amount of such Qualified Matching Contributions made on behalf of a
         Qualifying Contributing Participant each Plan Year shall be (Choose
         one): Option 1: ? An amount equal to _______ % of such Contributing
                     Participant's Elective Deferral (and/or Nondeductible Employee
                     Contribution, if applicable).
         Option 2:        ?    An amount equal to the sum, of_______ % of the portion of
      such Contributing Participant's                      Elective  Deferral (and/or
      Nondeductible Employee Contribution, if applicable) which does not
                          exceed _______ of the Contributing Participant's
      Compensation plus % of the portion of such Contributing Participant's
      Elective Deferral (and/or Nondeductible Employee Contribution, if
      applicable) which exceeds_______ % of the Contributing Participant's
      Compensation.
         Option3:   ?     Such amount, if any, as determined by the Employer in its sole
      discretion, equal to that                               percentage of the Elective
      Deferrals (and/or Nondeductible Employee Contribution,
                         if applicable) of each Contributing Participant
         entitled thereto which would be sufficient to cause the Plan to satisfy
         the Actual Contribution Percentage tests (described in Section 11.402
                of the Plan) for the Plan Year.

<PAGE>

                  Option 4:        ?    Other Formula. (Specify)

         NOTE: lf no option is selected, Option 3 will be deemed to be selected.

         Part C.     Participants Entitled to Qualified Matching Contributions:

         Qualified Matching Contributions, if made to the Plan, will be made on
         behalf of (Choose one): Option 1:? Only Contributing Participants who
         make Elective Deferrals who are not Highly Compensated Employees.
         Option 2:      ?      All Contributing Participants who make Elective Deferrals.
         NOTE: If no option is selected, Option l will be deemed to be selected.

         Part D.     Limit On Qualified Matching Contributions:

         Notwithstanding the Qualified Matching Contribution formula specified
         above, the Employer will not match a Contributing Participant's
         Elective Deferrals (and/or Nondeductible Employee Contribution, if
         applicable) in excess of _______________ or __% of such Contributing
         Participant's Compensation.

<PAGE>

Exhibit 10.4

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<PAGE>

                    SECTION 10. EMPLOYER PROFIT SHARING CONTRIBUTIONS
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
                            Complete Parts A. B and C
------------------------------------------------------------------------------------------

Part A. Contribution Formula:
         For each Plan Year the Employer will contribute an Amount to be
         determined from year to year.

Part B. Allocation Formula (Choose one):
         Option   1: ? Pro Rata Formula. Employer Profit Sharing Contributions
                  shall be allocated to the Individual Accounts of Qualifying
                  Participants in the ratio that each Qualifying Participant's
                  Compensation for the Plan Year bears to the total Compensation
                  of all Qualifying Participants for the Plan Year.
         Option 2:   ?   Integrated Formula. Employer Profit Sharing Contributions shall
                  be allocated as follows (Start with Step 3 if this Plan is not a
                  Top-Heavy Plan):

                  Step     1. Employer Profit Sharing Contributions shall first
                           be allocated pro rata to Qualifying Participants in
                           the manner described in Section 10, Part B, Option I.
                           The percent so allocated shall not exceed 3 % of each
                           Qualifying Participant's Compensation.
                  Step     2. Any Employer Profit Sharing Contributions
                           remaining after the allocation in Step l shall be
                           allocated to each Qualifying Participant's Individual
                           Account in the ratio that each Qualifying
                           Participant's Compensation for the Plan Year in
                           excess of the integration level bears to all
                           Qualifying Participants' Compensation in excess of
                           the integration level, but not in excess of 3%.
                  Step     3. Any Employer Profit Sharing Contributions
                           remaining after the allocation in Step 2 shall be
                           allocated to each Qualifying Participant's Individual
                           Account in the ratio that the sum of each Qualifying
                           Participant's total Compensation and Compensation in
                           excess of the integration level bears to the sum of
                           all Qualifying Participants' total Compensation and
                           Compensation in excess of the integration level, but
                           not in excess of the profit sharing maximum disparity
                           rate as described in Section 3.0l(B)(3) of the Plan.
                  Step     4. Any Employer Profit Sharing Contributions
                           remaining after the allocation in Step 3 shall be
                           allocated pro rata to Qualifying Participants in the
                           manner described in Section 10, Part B, Option 1.

                  The integration level shall be (Choose one):
                  Suboption (a):     0 The Taxable Wage Base.
                  Suboption (b):     0 _____________ (a dollar amount less than the
                  Taxable Wage Base).
                  Suboption (c):        0_____________% (not more than 100%) of the
                  Taxable Wage Base.

           NOTE:  If no option is selected, Suboption (a) will be deemned to be selected.

         NOTE: If no option is selected, Option l will be deemed no be selected,

Part C. Qualifying Participants:
         A Participant will be a Qualifying Participant and thus entitled to
         share in the Employer Profit Sharing Contribution for any Plan Year
         only if the Participant is a Participant on at least one day of such
         Plan Year and satisfies the following additional conditions (Check one
         or more Options): Option 1: X No Additional Conditions.

         Option      2: ? Hours of Service Requirement. The Participant
                     completes at least ______ Hours of Service during the Plan
                     Year. However, this condition will be waived for the
                     following reasons (Check at least one):
                    ?  The Participant's Death.
                    ? The Participant's Termination of Employment after having
                    incurred a Disability. ? The Participant's Termination of
                    Employment after having reached Normal Retirement Age.
                    ? This condition will not be waived.
            Option 3:    ?    Last Day Requirement. The Participant is an Employee of the
      Employer on the last day of the Plan Year.            However, this condition will
      be waived for the following reasons (Check at least one):
                    ?   The Participant's Death.
                    ? The Participant's Termination of Employment after having
                    incurred a Disability. ? The Participant's Termination of
                    Employment after having reached Normal Retirement Age.
                    ? This condition will not be waived.
                    Note:  If no option is selected, Option 1 will be deemed to be
                    selected.

<PAGE>

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                            SECTION 11. COMPENSATION
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
                           Complete Parts A through E
------------------------------------------------------------------------------------------

Part A.  Basic Definition:
         Compensation will mean all of each Participant's (Choose one):
         Option 1: 0 W-2 wages.
         Option 2: 0 Section 3401(a) wages.
         Option 3: ? 415 safe-harbor compensation.
         NOTE:  lf no option is selected, Option l will be deemed to be selected.

Part B.  Measuring Period for Compensation:
         Compensation shall be determined over the following applicable period (Choose
         one):
         Option 1: ? The Plan Year.
         Option 2: 0 The calendar year ending with or within the Plan Year.
         NOTE:  lf no option is selected, Option l will be deemed to be selected.

Part C.  Inclusion of Elective Deferrals:
         Does Compensation include Employer Contributions made pursuant to a
         salary reduction agreement which are not includible in the gross income
         of the Employee under Sections 125, 402(e)(3), 402(h)(l)(B) and 403(b)
         of the Code?
          ? Yes ONo
         NOTE:  lf neither box is checked, "Yes" will be deemed to be selected.

Part D.  Pre-Entry Date Compensation:
         For the Plan Year in which an Employee enters the Plan, the Employee's
         Compensation which shall be taken into account for purposes of the Plan
         shall be (Choose one):

         Option 1: ?  The Employee's Compensation only from the time the Employee became
         a Participant in the Plan.
         Option 2: O The Employee's Compensation for the whole of such Plan Year.
         NOTE:  lf no option is selected, Option l will be deemed to be selected.

Part E.  Exclusions From Compensation:
         Compensation shall not include the following (Check any that apply):
         ?   Bonuses           ?  Commissions
         ?  Overtime          ?   Other (Specify)
         ----------------------------------------------
         NOTE: No exclusions from Compensation are permitted if the integrated allocation
         formula in Section 10, Part B is selected.

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                       SECTION 12. VESTING AND FORFEITURES
------------------------------------------------------------------------------------------
                           Complete Parts A through G

Part     A. Vesting Schedule For Employer Profit Sharing Contributions. A
         Participant shall become Vested in his or her Individual Account
         derived from Profit Sharing Contributions made pursuant to Section 10
         of the Adoption Agreement as follows (Choose one):

-----------------------------------------------------------------------------------------------
     YEARS OF                               VESTED PERCENTAGE
                   Option                                                    (Complete if
 VESTING SERVICE     l O      Option 2 0  Option 3 0  Option 4 0 Option 5 ?  Chosen)
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
                                                                             20%

                                                                 40%
                                                                             (not less than
                                                                 60%         20%)
                                                                             (not less than
        1             0%      0%          100%        0%         80%         40%)
        2             0%      20%         100%        0%                100  (not less than
        3            0%       40%         100%        20%        %           60%)
        4            0%       60%         100%        40%                    (not less than
        5          100%       80%         100%        60%        %           80%)
        6          100%       100%        100%        80%                    (not less than
        7          100%       100%        100%        100%       %           100%)

  NOTE: If no option is selected, Option 3 will be
               deemed to be selected.
-----------------------------------------------------------------------------------------------

<PAGE>

                                                                                       Page
                                                                                       10

Part     B. Vesting Schedule For Matching Contributions. A Participant shall
         become Vested in his or her Individual Account derived from Matching
         Contributions made pursuant to Section 7 of the Adoption Agreement as
         follows (Choose one):

--------------------------------------------------------------------------------------------
YEARS OF                                VESTED  PERCENTAGE
                  Option     Option     Option                              (Complete if
VESTING SERVICE   l 0           2    0  3       0  Option 4  0Option 5(R)      Chosen)
--------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------

                                                                          (not less than
                                                                          20%)
                                                                          (not less than
        1         0%         0%         100%       0%         20%         40%)
        2         0%         20%        100%       0%         40%         (not less than
        3         0%         40%        100%       20%        60 %        60%)
        4         0%         60%        100%       40%        80 %        (not less than
        5         100%       80%        100%       60%        100 %       80%)
        6         100%       100%       100%       80%              %     (not less then
        7         100%       100%       100%       100%             %     100%)

  NOTE: lf no option is selected, Option 3 will be
               deemed to be selected.
---------------------------------------------------------------------------------------------

<PAGE>

Exhibit 10.4

Part C. Hours Required For Vesting Purposes:
         1.1000 Hours of Service (no more than 1,000) shall be required to
           constitute a Year of Vesting Service.
         2. 500 Hours of Service (no more than 500 but less than the number
            specified in Section 12, Part C, Item 1, above) must be exceeded to
            avoid a Break in Vesting Service.
         3. For purposes of determining Years of Vesting Service, Employees shall be given credit for
            Hours of Service with the following predecessor employer(s): (Complete if applicable)

            --------------------------------------------------------------------------------
            ----------------------------------------------------------------------------------------------

Part D. Exclusion of Certain Years of Vesting Service:
         All of an Employee's Years of Vesting Service with the Employer are
         counted to determine the vesting percentage in the Participant's
         Individual Account except (Check any that apply): [] Years of Vesting
         Service before the Employee reaches age l 8. [] Years of Vesting
         Service before the Employer maintained this Plan or a predecessor plan.

Part E. Allocation of Forfeitures of Employer Profit Sharing Contributions:

         Forfeitures of Employer Profit Sharing Contributions shall be (Choose one):
         Option 1:  Allocated to the Individual Accounts of the Participants specified below in the
                    manner as described in Section 10, Part B (for Employer
                    Profit Sharing Contributions) The Participants entitled to
                    receive allocations of such Forfeitures shall be (Choose
                    one):
                    Suboption (a):  O  Only Qualifying Participants.
                    Suboption (b):  O  All Participants.
         Option 2:   Applied to reduce Employer Profit Sharing Contributions (Choose one):
                    Suboption (a):  O  For the Plan Year for which the Forfeiture arises.
                    Suboption (b):       For any Plan Year subsequent to the Plan Year for which the
                    Forfeiture arises.
         Option     3: Applied first to the payment of the Plan's administrative
                    expenses and any excess applied to reduce Employer Profit
                    Sharing Cent ribut ions (Choose one):
              Suboption (a): O  For the Plan Year for which the Forfeiture arises.
                     Suboption (b): O  For any Plan Year subsequent to the Plan Year for which the
Forfeitures arises.

Note:  If no option is selected, Option 1 and Suboption (a) will be deemed to be selected.

<PAGE>

Part F. Allocation of Forfeitures of Matching Contributions:
          Forfeitures of Matching Contributions shall be (Choose one):
          Option 1: O   Allocated, after all other Forfeitures under the Plan, to each
                  Participant's Individual Account in the ratio which each
                  Participant's Compensation for the Plan Year bears to the
                  total Compensation of all Participants for such Plan Year.
                   The Participants entitled to receive allocations of such Forfeitures
                   shall be (Choose one):
                   Suboption (a): O Only Qualifying Contributing Participants.
                   Suboption (b) O Only Qualifying Participants.
                   Suboption (c): O All Participants.
          Option    2: O Applied to reduce Matching Contributions (Choose one):
                    Suboption (a): O For the Plan Year for which the Forfeiture
                    arises. Suboption (b): O For any Plan Year subsequent to the
                    Plan Year for which the Forfeiture arises.
            Option3: O Applied first to the payment of the Plan's administrative
                  expenses and any excess applied to reduce Matching
                  Contributions (Choose one): Suboption (a): O For the Plan Year
                  for which the Forfeiture arises. Suboption (b): O For any Plan
                  Year subsequent to the Plan Year for which the Forfeitures
                  arises.
         NOTE: lf no option is selected, Option l and Suboption (a) will be deemed to be
         selected.

Part G. Allocation of Forfeitures of Excess Aggregate Contributions:

         Forfeitures of Excess Aggregate Contributions shall be (Choose one):

          Option  1: O Allocated, after all other Forfeitures under the Plan, to
                  each Contributing Participant's Matching Contribution account
                  in the ratio which each Contributing Participant's
                  Compensation for the Plan Year bears to the total Compensation
                  of all Contributing Participants for such Plan Year. Such
                  Forfeitures will not be allocated to the account of any Highly
                  Compensated Employee.
              Option 2: O  Applied to reduce Matching Contributions (Choose one):
                               Suboption (a): 0 For the Plan Year for which the
Forfeiture arises.
                  Suboption (b): ? For any Plan Year subsequent to the Plan Year
                  for which the Forfeiture arises.
           Option 3: O Applied first to the payment of the Plan's administrative
                  expenses and any excess applied to reduce Matching
                  Contributions (Choose one):
                  Suboption (a): 0 For the Plan Year for which the Forfeiture arises.
                  Suboption (b): 0 For any Plan Year subsequent to the Plan Year for
                  which the Forfeitures arises.

 NOTE:   lf no option is selected, Option 2 and Suboption (a) will be deemed to be
 selected.

                SECTION 13. NORMAL RETIREMENT AGE AND EARLY RETIREMENT AGE

 The Normal Retirement Age under the Plan shall be (Check and complete one
option):

         Option 1:      Age 65.

         Option 2:      Age          _(not to exceed 65)
                           ------------

         Option 3:        The later of age____(not to exceed 65) or the________(not to
            exceed 5th) anniversary of the first day of
                            the first Plan Year in which the Participant commenced
            participation in the Plan.

         NOTE: lf no option is selected, Option l will be deemed to be selected.

Part B.        Early Retirement Age (Choose one option):

         Option 1:      An Early Retirement Age is not applicable under the Plan,

         Option 2:      Age 55 (not less than 55 nor more than 65).

         Option     3: A Participant satisfies the Plan's Early Retirement Age
                    conditions by attaining age ________ (not less than 55) and
                    completing _____ Years of Vesting Service.

         NOTE: lf no option is selected, Option l will be deemed to be selected.

                                SECTION 14. DISTRIBUTIONS

Distributable Events. Answer each of the following items.

<PAGE>

A, Termination of Employment Before Normal Retirement Age. May a Participant who
   has not reached Normal Retirement Age request a distribution from the Plan?

B. Disability, May a Participant who has incurred a Disability request a distribution
   from the Plan?

C. Attainment of Normal Retirement Age. May a Participant who has attained Normal
   Retirement Age but has not incurred a Termination of Employment request a distribution
   from the Plan?

D. Attainment of Age 59 1/2. Will Participants who have attained age 59 1/2 be permitted
   to withdraw Elective Deferrals while still employed by the Employer?

E. Hardship Withdrawals of Elective Deferrals. Will Participants be permitted to withdraw
   Elective Deferrals on account of hardship pursuant to Section 11.503 of the Plan?

F. In-Service Withdrawals, Will Participants be permitted to request a distribution
   during service pursuant to Section 6.01(A)(3) of the Plan?

G. Hardship Withdrawals. Will Participants be permitted to make hardship withdrawals
   pursuant to Section 6.01(A)(4) of the Plan?

H. Withdrawals of Rollover or Transfer Contributions. Will Employees be permitted to
   withdraw their Rollover or Transfer Contributions at any time?

O Yes              O No

O Yes     O No

O Yes     O No

O Yes     O No

O Yes     O No

O Yes     O No

O Yes     O  No

O Yes     O No

<PAGE>

NOTE: lf a box is not checked for an item, Yes" will be deemed to be selected
for that item. Section 411(d)(6) of the Code prohibits the elimination of
protected benefits. In general, protected benefits include the forms and timing
of payout options. lf the Plan is being adopted to amend and replace a Prior
Plan that permitted a distribution option described above, you must answer "Yes
" to that item.

                          SECTION 15. JOINT AND SURVIVOR ANNUITY

  Part A.    Retirement Equity Act Safe Harbor:

        Will the safe harbor provisions of Section 6.05(F) of the Plan apply? (Choose
        only one option)

        Option 1: O Yes.

        Option 2: O No.

         NOTE: You must select "No" if you are adopting this Plan as an
         amendment and restatement of a Prior Plan that was subject to the joint
         and survivor annuity requirements.

Part B.         Survivor Annuity Percentage: (Complete only if your answer in Section IS,
Part A is "No.")

        The survivor annuity portion of the Joint and Survivor Annuity shall be
        a percentage equal to _____ % (at least 50% but no more than 100%) of
        the amount paid to the Participant prior to his or her death.

<PAGE>

                                                                                   Page 13

                                SECTION 16. OTHER OPTIONS
Answer"Yes " or "No " to each of the following questions by checking the
      appropriate box. If a box is not checked for a question, the answer will
      be deemed to be "No. "

<PAGE>

A. Loans: Will loans to Participants pursuant to Section 6.08 of the Plan be permitted?
   O Yes          O No

B. Insurance: Will the Plan allow for the investment in insurance policies pursuant to
   Section        O Yes       O No
   5.13 of the Plan?

C. Employer Securities: Will the Plan allow for the investment in qualifying Employer
   O Yes          O No
   securities or qualifying Employer real property?

D. Rollover Contributions: Will Employees be permitted to make rollover contributions to
   the            O Yes       O No
   Plan pursuant to Section 3.03 of thw Plan?                                       O
   Yes, but only after
          becoming a Participant

E. Transfer Contributions: Will Employees be permitted to make transfer contributions to
   the            O Yes       O No
   Plan pursuant to Section 3.04 of the Plan?                                       O
   Yes, but only after
          becoming a Participant

F. Nondeductible Employee Contributions: Will Employees be permitted to make
   O Yes          O No
   Nondeductible Employee Contributions pursuant to Section l l .305 of the Plan?
   Check here if such contributions will be mandatory. [  ]

G. Will Participants be permitted to direct the investment of their Plan assets pursuant
   to Section           O Yes       O No
   5.14 of the Plan?

-------------------------------------------------------------------------------------------
                      SECTION 17. LIMITATION ON ALLOCATIONS
-------------------------------------------------------------------------------------------
                               More Than One Plan
-------------------------------------------------------------------------------------------

<PAGE>

lf you maintain or ever maintained another qualified plan in which any
Participant in this Plan is (or was) a Participant or could become a
Participant, you must complete this section. You must also complete this section
if you maintain a welfare benefit fund, as defined in Section 419(e) of the
Code, or an individual medical account, as defined in Section 4 15(l)(2) of the
Code, under which amounts are treated as annual additions with respect to any
Participant in this Plan.
Part A. Individually Designed Defined Contribution Plan:
         lf the Participant is covered under another qualified defined contribution plan
         maintained by the Employer, other than a master or prototype plan:
         1. O The provisions of Section 3.05(B)(1) through 3.05(B)(6) of the Plan will
              apply as if the other plan were a master or prototype plan.

         2.   O Other method. (Provide the method under which the plans will
              limit total annual additions to the maximum permissible amount,
              and will properly reduce any excess amounts, in a manner that
              precludes Employer discretion.)

-----------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------
Part B. Defined Benefit Plan:
         lf the Participant is or has ever been a participant in a defined
         benefit plan maintained by the Employer, the Employer will provide
         below the language which will satisfy the 1.0 limitation of Section
         415(e) of the Code. 1.O lf the projected annual addition to this Plan
         to the account of a
              Participant for any limitation year would cause the 1.0 limitation
              of Section 415(e) of the Code to be exceeded, the annual benefit
              of the defined benefit plan for such limitation year shall be
              reduced so that the l .0 limitation shall be satisfied.
              lf it is not possible to reduce the annual benefit of the defined benefit
              plan and the projected annual addition to this Plan to the account of a
              Participant for a limitation year would cause the 1.0 limitation to be
              exceeded, the Employer shall reduce the Employer Contribution which is to
              be allocated to this Plan on behalf of such Participant so that the 1.0
              limitation will be satisfied. (The

              provisions of Section 415(e) of the Code are incorporated herein
              by reference under the authority of Section l 106(h) of the Tax
              Reform Act of 1986.)
         2.  O      Other method. (Provide language describing another method. Such
language must preclue Employer discretion.)

----------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------

<PAGE>

                                                                                       Page
                                                                                       14

                          SECTION 18. TOP-HEAVY MINIMUM
                             Complete Parts_A and B

      Part A.     Minimum Allocation or Benefit:
            For any Plan Year with respect to which this Plan is a Top-Heavy
            Plan, any minimum allocation required pursuant to Section 3.01(E) of
            the Plan shall be made (Choose one):

            Option 1: O To this Plan.

            Option 2: O To the following other plan maintained by the Employer (Specify
         name amid plan number of plan)

--------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------
            Option 3: O In accordance with the method described on an attachment
               to this Adoption Agreement. (Attach language describing the
               method that will be used to satisfy Section 416 of the Code. Such
               method must preclude Employer discretion.)
            NOTE: lf no option is selected, Option l will be deemed to be selected.

      Part B.  Top-Heavy Vesting Schedule:
            Pursuant to Section 6.01(C) of the Plan, the vesting schedule that
            will apply when this Plan is a Top-Heavy Plan (unless the Plan's
            regular vesting schedule provides for more rapid vesting) shall be
            (Choose one): Option 1: O 6 Year Graded.
            Option 2:  O  3 Year Cliff.
            NOTE: lf no option is selected, Option l will be deemed to be selected.
-----------------------------------------------------------------------------------------------
                              19. PROTOTYPE SPONSOR
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Name of Prototype Sponsor Eastern Resorts Company
LLC______________________________________________________________
Address 115 Long Wharf, Newport, RI
02840_________________________________________________________________________
Telephone Number 401 -845-01 00
                 --------------
----------------------------------------------------------------------------------
Permissible Investments
The assets of the Plan shall be invested only in those investments described
below (To be completed by the Prototype Sponsor):
  Mutual Funds - Galaxy Funds and other mutual funds offered for use by fleet in
its daily valuation product.

<PAGE>

                        SECTION 20. TRUSTEE OR CUSTODIAN

 Option A:O Financial Organization as Trustee or Custodian

 Check One: O     Custodian, O Trustee without full trust powers, or O Trustee with full
          trust powers

Financial Organization Fleet National
Bank____________________________________________________________________________
Signature________________________________________________________________________________________________________
Type Name John J. Brosnan
----------------------------------------------------

 Option B:O Individual Trustee(s)
Signature __________________________________________  Signature
------------------------------------------
Type Name_________________________________________    Type
Name_________________________________________
Signature __________________________________________  Signature
------------------------------------------
Type Name_________________________________________    Type
Name_________________________________________

<PAGE>

                                                                                    Page15

                              SECTION 21. RELIANCE

The Employer may not rely on an opinion letter issued by the National Office of
the Internal Revenue Service as evidence that the Plan is qualified under
Section 401 of the Internal Revenue Code. In order to obtain reliance with
respect to plan qualification, the Employer must apply to the appropriate Key
District office for a determination letter.

This Adoption Agreement may be used only in conjunction with Basic Plan Document No. 04.

                         SECTION 22. EMPLOYER SIGNATURE
                      Important: Please read before signing
I am an authorized representative of the Employer named above and I state the
following:

 l  .I acknowledge that l have relied upon my own advisors regarding the
    completion of this Adoption Agreement and the legal tax implications of
    adopting this Plan.

2.    I understand that my failure to properly complete this Adoption Agreement
      may result in disqualification of the Plan.

 3. I understand that the Prototype Sponsor will inform me of any amendments
    made to the Plan and will notify me should it discontinue or abandon the
    Plan.

4.    I have received a copy of this Adoption Agreement and the corresponding
      Basic Plan Document.

 5. I have received a copy of the prospectus describing the "Galaxy Fund" and,
    based on the prospectus and the information contained m the Basic Plan
    Document, l APPROVE THE INVESTMENT AND REINVESTMENT OF PLAN ASSETS IN THE
    GALAXY FUNDS.

<PAGE>

Signature for Employer
  Eastern Resorts Company, LLC_______  Date Signed January 4, 2000

Type Name Richard G. Winkler___________________________     Title _____________
</TABLE><TABLE>
<S>  <C>
Exhibit 10.13

                           INDEMNIFICATION AGREEMENT

      This Indemnification Agreement, dated March 30, 1999, is by and between
Kosmas Group International, Inc. ("KGI"), a Florida corporation, and the
undersigned subsidiaries and shareholders (collectively with KGI, the
"Sellers"), and Equivest Finance, Inc., a Delaware corporation ("Purchaser").

                                  WITNESSETH:

      WHEREAS, simultaneously with the execution and delivery of this Agreement,
Purchaser is acquiring all of the issued and outstanding common stock of Avenue
Plaza, LLC, a Louisiana limited liability company; Bluebeard's Castle, Inc., a
U.S. Virgin Islands corporation; Castle Acquisition, Inc., a U.S. Virgin Island
corporation; Ocean City Coconut Malorie Resort, Inc., a Maryland corporation;
St. Augustine Resort Development Group, Inc., a Florida corporation, and
substantially all of the assets of Capital City Suites, Inc., a Washington,
D.C., corporation, which are all corporations engaged in the business of
developing, marketing, and managing resort properties that offer timeshare
condominiums, pursuant to the terms and conditions of that certain Purchase
Agreement, dated February 16, 1999 (the "Purchase Agreement"); and

      WHEREAS, a condition precedent to Sellers' obligation to close the
transactions contemplated by the Purchase Agreement is the resolution of certain
obligations of Sellers to the Cavanaugh Lenders (as that term is defined in the
Purchase Agreement), Castle Holdings, LLC, ("Castle Holdings" and, collectively
with the Cavanaugh Lenders, the "Obligees"); and

      WHEREAS, Purchaser was unable to resolve all obligations of Sellers to the
Cavanaugh Lenders and Castle Holdings prior to the consummation of the
transactions contemplated by the Purchase Agreement; and

      WHEREAS,  Purchaser and Sellers are presently in litigation  with Castle Holdings in
the U.S. District Court for the Virgin Islands;

      WHEREAS, Castle Holdings has made a variety of assertions regarding moneys
owed to it by Sellers or their affiliates, but has not provided any supporting
documentation therefor;

      WHEREAS, the parties hereto believe that Castle Holdings has been paid on
certain of the aforementioned obligations and therefore that its claims are
substantially below what it has asserted;

      WHEREAS, certain of the principals of Castle Holdings are employees and/or
officers of KGI or its subsidiaries and have breached the fiduciary duties they
owe to their employer;

      WHEREAS, Purchaser is willing to enter into this Agreement to induce
Sellers to consummate the transactions contemplated by the Purchase Agreement
despite such resolution of obligations, and Sellers are only willing to
consummate such transactions if Purchaser indemnifies Sellers from damages
resulting from claims of Obligees as provided herein;

<PAGE>

      NOW THEREFORE, for and in consideration of the foregoing and the mutual
agreements set forth below, the parties agree as follows:

      1. Indemnification. Purchaser agrees to indemnify and hold harmless
Sellers and any subsidiaries and the shareholders, directors, officers,
employees, and agents thereof (collectively, the "Indemnified Parties") from and
against any Adverse Consequences (as defined below) any of such Indemnified
Parties may suffer through and after the date of the claim for indemnification
resulting from, arising out of, relating to, in the nature of, or caused by any
claim of Obligees or any other party through Obligees as provided herein. For
purposes of this Agreement, the phrase "Adverse Consequences" means all claims,
losses, liabilities, costs, and expenses of any kind without limitation
(including but not limited to reasonable attorneys' fees and court costs) that
are incurred by the Indemnified Parties, including but not limited to all
charges, complaints, actions, suits, proceedings, hearings, investigations,
claims, damages, judgments, orders, decrees, stipulations, injunctions, damages,
dues, penalties, fines, costs, amounts paid in settlement, liabilities (whether
known or unknown, whether absolute or contingent, whether liquidated or
unliquidated, and whether due or to become due), obligations, taxes, liens,
losses, expenses, and fees, including all attorneys' fees and court costs.
Provided however, Adverse Consequence shall not include any monetary award
pursuant to a judicial judgment in favor of Obligees which judgment is
specifically attributable to fraudulent representations of Sellers to the
Obligees in that certain lawsuit styled Castle Holdings, L.L.C., v. Kosmas Group
International, Inc., and Kosmas Caribbean Holdings Corporation but shall
specifically include any attorneys' fees and costs incurred by Sellers defending
such claim.

      2.    Amount of Indemnification.

            (a) Indemnification Threshold. Purchaser's obligations hereunder
shall be limited to Five Million Nine Hundred Seventy-five Thousand Dollars
($5,975,000) (the "Indemnification Threshold"). Attorneys' fees and expenses
incurred by Sellers and/or Purchaser, as provided in paragraph 3 below, shall
not count toward the Indemnification Threshold. Of the Indemnification
Threshold, Purchaser shall not be obligated to deliver to Seller or any Obligee
more than One Million Eight Hundred and Fifty Thousand Dollars ($1,850,000) in
cash, with the remainder to be delivered in the form of Purchaser's common stock
valued at the average of the mid-market price for Purchaser's common stock on
the ten days prior to such payment that such common stock has traded. Purchaser
shall always have the right (but not the obligation) to deliver cash in lieu of
stock.

            (b) Settlement of Adverse Consequences. Purchaser may settle any
Adverse Consequence with an Obligee hereunder, without compulsion from legal
decree, upon prior written notice to Sellers and receipt of Sellers' written
consent. Provided however, Sellers are not obligated to contribute or pay any
portion of an Adverse Consequence whether in excess or not of the remaining
outstanding Indemnification Threshold without its prior written consent.

<PAGE>

            (c) Applications Against Indemnification Threshold. The
Indemnification Threshold shall be reduced by any sums paid by Purchaser to
Castle Holdings, the Cavanaugh Lenders and /or their affiliates after the
execution of this Agreement that are attributable to Sellers' actual or claimed
obligations to Castle Holdings, the Cavanaugh Lenders and/or their affiliates
including but not limited to the costs of terminating the employment of any
affiliate of Castle Holdings employed by KGI or its subsidiaries or any costs of
replacing receivables owned by or pledged to Castle Holdings, the Cavanaugh
Lenders or their respective affiliates.

            (d) Further Reduction. The Indemnification Threshold shall also be
reduced by any amount included in the $9.2 million that Cavanaugh, Castle
Holdings and their affiliates claim are owed which are determined not to be due
or owing. Purchaser shall provide Sellers with prior written notice of the
amount of such payment and the claim of such liability.

      3. Indemnification for Attorneys Fees and Costs Incurred Defending or
Prosecuting Adverse Consequences. In addition to the Indemnification Threshold,
Purchaser shall pay the expense and costs of defending and prosecuting any
Adverse Consequence either on behalf of Purchaser or on behalf of Sellers to
legal counsel hired by Sellers pursuant to paragraph 4 below.

<PAGE>

      4. Procedure and Notice. If Sellers receive notice with respect to any
matter that may give rise to a claim for indemnification under this Agreement,
then Sellers shall notify Purchaser promptly in writing; provided, however, that
no delay on the part of Sellers in notifying Purchaser shall relieve Purchaser
from any liability or obligation hereunder unless (and then solely to the extent
that) Purchaser thereby is damaged. In the event Purchaser notifies Sellers,
within 15 business days after Sellers have given notice of the matter, that
Purchaser is assuming the defense thereof: (i) Purchaser will defend Sellers
against the matter with counsel of Purchaser's choice reasonably satisfactory to
Sellers; (ii) Sellers will cooperate fully with Purchaser and counsel in
defending any claims made by an Obligee of an affiliate as well as in
prosecuting claims against Obligees; (iii) Sellers may retain separate
co-counsel at its sole cost and expense (except that Purchaser will be
responsible for the fees and expenses of the separate co-counsel to the extent
Sellers reasonably conclude that Purchaser's counsel has a conflict of
interest); (iv) Sellers will not consent to the entry of any judgment or enter
into any settlement with respect to the matter that does not include full
release; and (v) Purchaser will not consent to the entry of any judgment with
respect to the matter, or enter into any settlement that does not include a
provision whereby the Obligee releases Sellers from all liability with respect
thereof, without the written consent of Sellers not to be unreasonably withheld,
conditioned or delayed. If Purchaser assumes the defense of any such matter,
such action shall be deemed to be an admission by Purchaser of its
indemnification obligations hereunder and Sellers shall use all reasonable
efforts to cooperate fully in the defense of any claim, action, or proceeding
covered by this Agreement. In the event Purchaser does not notify Sellers,
within 15 business days after Sellers have given notice of the matter, that
Purchaser is assuming the defense thereof, Sellers may defend against, or enter
into any settlement with respect to, the matter in any manner it may reasonably
deem appropriate; provided, however, that prior to (i) settling any matter
without a complete release of Purchaser or (ii) making any admission of
liability, Sellers shall provide at least 7 days prior written notice of such
proposed settlement or admission. Notwithstanding the foregoing, Purchaser may,
at any time, assume the defense thereof (and thereby be deemed to admit its
indemnification obligations hereunder). Sellers are deemed to have provided
Purchaser with notice of that certain Adverse Consequence in that certain
lawsuit styled Castle Holdings, L.L.C., v. Kosmas Group International, Inc., and
Kosmas Caribbean Holdings Corporation, Purchaser is deemed to have and
Purchaser's shall be responsible for the fees and expenses of Sellers' separate
co-counsel to the extent incurred necessary due to conflicts on or after the
date of this Agreement.

      5. Covenant. Purchaser covenants that it will continue to use all
reasonable efforts to settle subject to the Indemnification Threshold set forth
herein all outstanding obligations to Castle Holdings, L.L.C. and the Cavanaugh
Lenders with the intent of settling all outstanding obligations to the Obligees
within two weeks of the date hereof. Sellers covenant that they will, and will
cause their affiliates to: (i) refrain from having any discussions with any of
Castle Holdings, L.L.C., the Cavanaugh Lenders or their affiliates concerning
any claims that Castle Holdings, L.L.C. or the Cavanaugh Lenders have or may
have against Sellers or Purchaser without the express written consent of
Purchaser, and (ii) refer to Purchaser or its counsel all inquiries or contacts
from Castle Holdings, L.L.C. or the Cavanaugh Lenders to Sellers.

      6. Sale of Assets. If, prior to the expiration of the statute of
limitations for Obligees to file any claim for relief in any judicial tribunal,
Purchaser sells all or substantially all of its assets or such portion of its
assets which makes Purchaser's compliance with its indemnification obligations
under this Agreement unlikely (and Purchaser fails to provide Seller with
reasonable comfort of its ability to satisfy its obligations hereunder
thereafter), Purchaser shall either (1) require such liability and obligations
hereunder to be expressly assumed by the buyer of such assets without the
release of Purchaser's liability hereunder, or (ii) deposit cash or a cash
equivalents into an escrow account to be held under commercially reasonable
terms and by an entity mutually-agreeable to the parties.
      7.    General Provisions.

            (a) Notices. All notices and other communications hereunder shall be
in writing and shall be deemed given if delivered personally, transmitted by
facsimile (receipt confirmed), sent by national overnight courier service, or
mailed by registered or certified United States Mail (return receipt requested)
postage prepaid, to the parties at the following addresses (or at such other
address for a party as shall be specified by like notice, provided that notices
of a change of address shall be effective only on receipt of such notice):

      To Sellers:

      Kosmas Group International, Inc.
      920 Third Avenue
      New Smyrna Beach, FL  32169
      Attn: Steven P. Kosmas
      Fax: (904) 428-9536

<PAGE>

      With a copy to:

      Cobb Cole & Bell
      150 Magnolia Avenue
      Daytona Beach, FL  32115
      Attn: John P. Ferguson, Esquire
      Fax: (904) 238-7003

      To Purchaser:

      Equivest Finance, Inc.
      2 Clinton Square
      Syracuse, New York 13202
      Attn: Eric C. Cotton
      Fax: (315) 422-9477

      With a copy to:

      Wilmer, Cutler & Pickering
      2445 M Street, N.W.
      Washington, D.C.  20037-1420
      Attn:       Eric R. Markus, Esquire
      Fax:  (202) 663-6363

            (b) Entire Agreement. This Agreement (including the documents and
instruments referred to herein) constitutes the entire agreement of the parties
and supersedes all prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof.

            (c) Severability. The validity or enforceability of any term or
provision of this Agreement shall in no way affect the validity or
enforceability of any other term or provision. If any provision of this
Agreement is so broad as to be unenforceable, such provision shall be
interpreted to be only so broad as is enforceable.

            (d) Headings. The headings contained in this Agreement are solely
for reference purposes and shall not affect the meaning or interpretation of
this Agreement in any way.

            (e) Governing Law. The parties agree that the laws of the State of
New York will govern the formation, interpretation and enforcement of this
Agreement without giving effect to principles of conflicts of law. The parties
hereby consents to service of process by registered mail delivered in accordance
with the provisions of paragraph 4 of this Agreement, or service of process in
any other legal manner.

<PAGE>

            (f) Jurisdiction, Venue, and Service of Process. The parties consent
to and waive any objection to the jurisdiction of the United States District
Court for the Northern District of New York, or any state court located in
County, Florida, over the person of any party to this Agreement, for purposes of
any action brought (i) to enforce this Agreement, (ii) to recover damages for
breach of this Agreement, or (iii) to enforce rights provided by this Agreement.
The Parties agree that venue of any action brought as provided herein shall be
proper in the courts named above, and each party waives any objection to such
venue.

            (g) Attorneys' Fees. Should any party employ an attorney or
attorneys to enforce any of the provisions of this Agreements or to protect its
interests in any manner arising under this Agreement or to recover damages for
the breach of this Agreement, the prevailing party shall be entitled to recover
from the other party all reasonable costs, charges, and expenses, including
reasonable attorneys' fees, expended or incurred in connection therewith.

            (h) Right to Injunctive Relief. Each of the parties hereto agrees
that irreparable damage would occur in the event that any of the provisions of
this Agreement were not performed by him, her or it in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that any
harmed party hereto shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions
hereof, this being in addition to any other remedy to which any party is
entitled at law or in equity.

            (i) No Third Party Beneficiaries. Nothing in this Agreement shall
entitle any person other than KGI, Sellers or Purchaser, or their respective
successors and assigns as permitted under this Agreement, to any claim, cause of
action, remedy, or right of any kind. No current or former employee of KGI or
any of its affiliates has any right to enforce this agreement against any party.

                 [Remainder of Page Intentionally Left Blank]

<PAGE>

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

PURCHASER

EQUIVEST FINANCE, INC.

By:

Its:

Richard Breeden

SELLERS

KOSMAS GROUP INTERNATIONAL, INC.

By:

Its:

AVENUE PLAZA, LLC

By:

Its:

OCEAN CITY COCONUT MALORIE RESORT, INC.

By:

Its:

CAPITAL CITY SUITES, INC.

By:

<PAGE>

Its:

KOSMAS CARIBBEAN HOLDING CORPORATION

By:

Its:

ST. AUGUSTINE RESORT DEVELOPMENT GROUP, INC.

By:

Its:

Steven Kosmas

Paul Kosmas

Chip Gordy

Nicholas Kosmas
</TABLE>

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