Document:

Unassociated Document

Exhibit 10.4

    NONCOMPETE
AGREEMENT

    

    This
Noncompete Agreement (this "Agreement")
is entered into as of March 21, 2008, by and among TL ACQUISITION GROUP LLC, a
Delaware limited liability company ("Buyer"),
AMERICAN LEISURE EQUITIES CORPORATION D/B/A TRAVELEADERS, INC., a Florida
corporation (the "Seller"),
and AMERICAN LEISURE HOLDINGS, INC., a Nevada corporation, being the sole
shareholder of the Seller ("Shareholder")
(each a "Party"
and, collectively, the "Parties").

    

    RECITALS

    

    WHEREAS,
concurrent with the execution of this Agreement, the Buyer, Seller and
Shareholder are consummating the transaction contemplated by that certain Asset
Purchase Agreement (the "Purchase
Agreement"), dated as of the date hereof, pursuant to which the Buyer is
acquiring substantially all of the non-cash assets of the
Seller.  Capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in the Purchase Agreement;

    

    WHEREAS,
the "Business"
means the business of operating travel agencies, as conducted by the Seller on
the Closing Date;

    

    WHEREAS,
the Buyer will be engaged in the Business; and

    

    WHEREAS,
as an essential inducement for the Buyer to enter into the Purchase Agreement,
and in consideration of the transactions contemplated by the Purchase Agreement,
the Seller and Shareholder have agreed to the provisions of this Agreement and
to abide by the restrictive covenants contained herein.

    

    AGREEMENT

    

    NOW,
THEREFORE, in consideration of the foregoing recitals and the covenants and
agreements in the Purchase Agreement and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Seller and Shareholder hereby covenant and agree as follows:

    

    1.           Noncompetition and
Nonsolicitation.

     

    (a)           The
Seller acknowledges and agrees with the Buyer that its services are, and were,
unique in nature with respect to the Business and that the Buyer and its
Affiliates would be irreparably damaged if the Seller, Shareholder or any of
their Affiliates were to provide similar services to any Person (as defined
below) competing with the Buyer and its Affiliates or engaged in a similar
business.  During the Noncompete Period (as defined below), none of
the Seller, Shareholder or any of their Affiliates, shall directly or
indirectly, either for itself or for any other Person, permit their name to be
used by or participate in any business or enterprise (including, without
limitation, any division, group or franchise of a larger organization) that
engages or proposes to engage in the Business in the Restricted Territory (as
defined below).  For purposes of this Agreement, the term “participate
in” shall include, without limitation, having
any direct or indirect interest in any Person, whether as a sole proprietor,
owner, stockholder, partner, member, joint venturer, creditor or otherwise, or
rendering any direct or indirect service or assistance to any Person (whether as
a director, officer, supervisor, employee, agent, consultant or
otherwise).  Nothing herein will prohibit the Seller, Shareholder or
any of their Affiliates from (i) engaging or participating in any activity that
Seller, Shareholder, any of their Affiliates, including, but not limited to,
Hickory Travel Systems, Inc. (“Hickory”)
engages or participates in as of the Closing Date with respect to the business
of Hickory, or any other activity incidental or reasonably related thereto; (ii)
engaging or participating in any activity relating to (or contracting with third
parties to provide any product or service relating to) the marketing, promotion,
booking, ownership or management of any resort property or other destination or
providing services to clients and customers of such properties or destinations;
(iii) providing services at welcome centers in which Seller, Shareholder or
any of their Affiliates now or hereafter holds any direct or indirect interest
or to which it now or hereafter provides management services; (iv) providing
travel services in relation to the sale of, or to holders of, any vacation club
ownership interest, fractional ownership interest, timeshare interest, or
similar interest; or (v) mere passive ownership of not more than five percent
(5%) of the outstanding stock of any class of a publicly held corporation whose
stock is traded on a national securities exchange or in the over-the-counter
market.  As used herein, the phrase “mere passive ownership” shall
include voting or otherwise granting any consents or approvals required to be
obtained from such Person as an owner of stock or other ownership interests in
any entity pursuant to the charter or other organizational documents of such
entity, but shall not include, without limitation, any involvement in the
day-to-day operations of such entity.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)           During
the Nonsolicitation Period (as defined below), none of the Seller, Shareholder
and their Affiliates will not directly or indirectly through another Person: (i)
induce or attempt to induce any Customer (as defined below), supplier, licensee,
or other business relation to cease doing business or reduce its level of
business with the Buyer or any of its Affiliates; or (ii) induce or attempt to
induce any (A) Hired Active Employee, (B) individual performing services as an
independent contractor of the Seller on the Closing Date that is retained on the
Closing Date by the Buyer (a “Retained
Contractor”), or (C) employee or individual performing services as an
independent contractor of the Buyer employed or engaged subsequent to the
Closing Date to terminate their employment or performance of services with the
Buyer or any of its Affiliates; provided, however, that the
foregoing limitation shall not apply to the recruitment, solicitation or hiring
of any employee or independent contractor if the employment or provision of
services to the Seller, Shareholder or any of their Affiliates could not be
reasonably expected to materially interfere with the services provided to the
Buyer by such employee or independent contractor or the hiring of any employee
who responds to a general solicitation of employment not specifically directed
toward the Buyer's or any of its Affiliates' employees; or (iv) in any way
intentionally interfere with the relationship between any such Customer,
supplier, licensee, employee, independent contractor or business relation of the
Buyer or any of its Affiliates, including, without limitation, willfully making
any intentionally disparaging statements or communications concerning the Buyer
or any of its Affiliates.

     

    (c)           Certain
capitalized terms as used in this Agreement have the following
definitions:

     

    “Affiliate”
means, with respect to any Person, a Person which, directly or indirectly,
controls, is controlled by or is under common control with such
Person.  As used in this definition, "control" means possession,
direct or indirect, of the power to direct or cause the direction of management
and policies of a Person, whether through ownership of voting interests, by
contract or otherwise.

     

    “Customer”
means, any Person (a) which was a customer of the Seller, at any time during the
12-month period ending on the Closing Date or (b) to whom there existed an
outstanding bid by the Seller on the Closing Date.

     

    “Noncompete
Period” means the period commencing on the Closing Date and ending on the
date which is five (5) years thereafter.

     

    “Nonsolicitation
Period” means the period commencing on the Closing Date and ending on the
date which is five (5) years thereafter.

     

    “Person”
means an individual, a partnership, a corporation, a limited liability company,
an association, a joint stock company, a trust, a joint venture, an
unincorporated organization, or the United States of America any other nation,
any state or other political subdivision thereof, or any entity exercising
executive, legislative, judicial, regulatory or administrative functions of
government.

     

    “Restricted
Territory” means each state within the United States of
America.

     

    2.           Stay of
Time.  In the event a court of competent jurisdiction or other
entity or person mutually selected by the parties to resolve any dispute
(collectively a “Court”)
has determined that the Seller, Shareholder, ALG or any of their Affiliates have
violated the provisions of this Agreement, the running of the time period of
such provisions so violated shall be automatically suspended as of the date of
such violation and shall be extended for the period of time from the date such
violation commenced through the date that the Court determines that such
violation has permanently ceased.

     

    3.           Enforcement.

     

    (a)           Without
limitation, the Parties agree and intend that the covenants contained in this
Agreement shall be deemed to be a series of separate covenants and agreements,
one for each and every county or political subdivision of each applicable state
of the United States with respect to the Restricted Territory.  It is
the desire and intent of the Parties hereto that the provisions of this
Agreement be enforced to the fullest extent permissible under the laws and
public policies of each jurisdiction in which enforcement is
sought.  Accordingly, if, at the time of enforcement of Section
1, a Court holds that the restrictions stated herein are unreasonable
under circumstances then existing, the Parties agree that, to the extent
permitted by applicable law, the maximum period, scope or geographical area
reasonable under such circumstances will be substituted for the Noncompete
Period, Nonsolicitation Period, scope or Restricted
Territory.  Furthermore, such substitution will apply only with
respect to the operation of such provision in the particular jurisdiction in
which such adjudication is made.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Because
the Parties agree that money damages would be an inadequate remedy for any
breach of Section
1, in the event of a breach or threatened breach of Section
1 the Buyer or any of its Subsidiaries or any of their respective
successors or assigns may, in addition to other rights and remedies existing in
their favor, apply to any Court for specific performance and/or injunctive or
other relief in order to enforce, or prevent any violations of, the provisions
hereof (without posting a bond or other security).  The Parties hereby
acknowledge and agree that (i) performance of the services of the Seller and
Shareholder hereunder may occur in jurisdictions other than the jurisdiction
whose law the Parties have agreed shall govern the construction, validity and
interpretation of this Agreement, (ii) the law of the State of Florida shall
govern construction, validity and interpretation of this Agreement to the
fullest extent possible, and (iii) Section
1 shall restrict the Seller and Shareholder only to the extent permitted
by applicable law.  The Seller and Shareholder expressly agree and
acknowledge that the covenants of the Seller and Shareholder contained in Section
1 shall restrict the Seller and Shareholder only to the extent permitted
by applicable law and are (A) reasonably necessary for the protection of the
Buyer's interests, (B) made in consideration of the benefits derived or to be
derived, directly or indirectly, by the Seller and Shareholder under the
Purchase Agreement, and (C) not unduly restrictive upon the Seller or
Shareholder.

     

    4.           Notices.  Any
notice provided for in this Agreement must be in writing and must be either
personally delivered or sent by reputable overnight courier service (charges
prepaid) to the recipient at the address below indicated:

     

    
      	
              If
      to the Buyer:

            	
              TL
      Acquisition Group LLC

            

    

    
      	
               
      

            	
              6442
      City West Parkway

            

    

    
      	
               
      

            	
              Minneapolis,
      MN  55344

            

    

    
      	
               
      

            	
              Attn:
      Chief Financial Officer

            

    

    
      	
               
      

            	
              Attn:
      General Counsel

            
	 	Facsimile
      Number: (763) 212-1993
	 	 
	 	 
	With
      a copy to:	Alexander
      P. Fraser, Esq.
	 	Michael
      H. Altman, Esq.
	 	Michael
      Best & Friedrich LLP
	 	100
      East Wisconsin Avenue
	 	Milwaukee,
      WI  53202-4108
	 	Facsimile
      Number: (414) 277-0656
	 	 
	 	 
	If
      to the Seller and/or the Shareholder:  	American
      Leisure Holdings, Inc.
	 	2460
      Sand Lake Road
	 	Orlando,
      FL  32809
	 	Attention:
      Matt Hagler
	 	Facsimile
      Number: (407) 251-8455
	 	 
	 	 
	With
      a copy to:  	Foley
      & Lardner LLP
	 	100
      N. Tampa St., Suite 2700
	 	Tampa,
      FL  33602
	 	Attention:
      Curt P. Creely, Esq.
	 	Facsimile
      Number: (813) 221-4210

    

                                                   

    
      or such
other address or to the attention of such other person as the recipient Party
will have specified by prior written notice to the sending Party.  Any
notice under this Agreement will be deemed to have been given when so delivered
or sent.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

    

    5.           Severability.  Whenever
possible, each provision of this Agreement will be interpreted in such manner as
to be effective and valid under applicable law.  If, however, any
provision of this Agreement is deemed or held to be illegal, invalid or
unenforceable by any court of competent jurisdiction, this Agreement shall be
considered divisible and inoperative as to such provision to the extent it is
deemed to be illegal, invalid or unenforceable, and in all other respects this
Agreement shall remain in full force and effect; provided, however, that if any
provision of this Agreement is deemed or held to be illegal, invalid or
unenforceable by any court of competent jurisdiction, such illegal, invalid or
unenforceable provision shall be replaced with a provision that is legal, valid
and enforceable and that will achieve, to the greatest extent possible, the
economic, business and other purposes of such invalid or unenforceable
provision.  Further, should any provision contained in this Agreement
ever be reformed or rewritten by any judicial body of competent jurisdiction,
such provision as so reformed or rewritten shall be binding upon all parties
hereto.

     

    6.           Successors and
Assigns.  This Agreement is intended to bind and inure to the
benefit of and be enforceable by the Parties and their respective heirs,
successors and assigns.  No Party may assign its respective rights or
delegate its obligations hereunder without the prior written consent of all of
the other Parties.

     

    7.           Choice of
Law.  All questions concerning the construction, validity and
interpretation of this Agreement will be governed by and construed in accordance
with the domestic laws of the State of Florida without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of
Florida or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Florida.

     

    8.           Remedies.  Each
Party will be entitled to enforce its rights under this Agreement specifically,
to recover damages and costs caused by any breach of any provision of this
Agreement and to exercise all other rights existing in its
favor.  Nothing herein shall prohibit any arbitrator or judicial
authority from awarding attorneys’ fees or costs to a prevailing Party in any
arbitration or other proceeding to the extent that such arbitrator or authority
may lawfully do so.  The Parties agree and acknowledge that money
damages may not be an adequate remedy for any breach of Section
1 of this Agreement and that any Party may in its sole discretion apply
to any court of law or equity of competent jurisdiction (without posting any
bond or deposit) for specific performance and/or other injunctive relief in
order to enforce or prevent any violations of the provisions of this
Agreement.

     

    9.           Amendment and
Waiver.  The provisions of this Agreement may be amended or
waived only with the prior written consent of each of the Parties hereto, and no
course of conduct or
failure or delay in enforcing the provisions of this Agreement will affect the
validity, binding effect or enforceability of this
Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    10.           Construction.  The
language of this Agreement will be construed simply and according to its fair
meaning, and will not be construed for or against any Party hereto as a result
of the source of its draftsmanship.

     

    11.           Third Party
Beneficiaries.  This Agreement will not confer any rights or
remedies upon any Person other than the Parties hereto and their respective
successors and permitted assigns.

     

    12.           Seller's and Shareholder’s
Representations.  The Seller and the Shareholder hereby
represent and warrant to the Buyer that (a) the execution, delivery and
performance of this Agreement by the Seller and the Shareholder do not and shall
not conflict with, breach, violate or cause a default under any contract,
agreement, instrument, order, judgment or decree to which the Seller or the
Shareholder are a party or by which they are bound, (b) the Seller and the
Shareholder are not parties to, or bound by, any employment agreement,
noncompete agreement or confidentiality agreement with any other Person that
shall conflict with, breach or violate the terms of this Agreement, and (c) upon
the execution and delivery of this Agreement by the Parties and assuming due
execution and delivery of this Agreement by the Buyer, this Agreement shall be
the valid and binding obligation of the Seller and the Shareholder, enforceable
in accordance with its terms, except as such enforcement may be limited by or
subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally and general equitable principles (whether considered
in a proceeding in equity or at law).

     

    13.           Facsimiles and
Counterparts.  Facsimile transmission of any signed original
document and/or retransmission of any signed facsimile transmission will be
deemed the same as delivery of an original.  This Agreement may be
executed in separate counterparts, each of which is deemed to be an original and
all of which taken together constitute one and the same agreement.

     

    [Signature
page follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

    
      	 
      	
              TL
      ACQUISITION GROUP LLC

               

               

              By:  /s/ Nicholas C. Bluhm,
      Sr.                                                                

              Name: Nicholas
      C. Bluhm, Sr.

              Title: Secretary
      and Treasurer

               

              AMERICAN
      LEISURE EQUITIES CORPORATION d/b/a TRAVELEADERS, INC.

               

               

              By:  /s/ Malcolm J.
      Wright                                                                

              Name: Malcolm
      J. Wright

              Title: Chief
      Executive Officer

               

              AMERICAN
      LEISURE HOLDINGS, INC.

               

               

              By:  Malcolm J.
      Wright                                                             

              Name:  Malcolm
      J. Wright

              Title: Chief
      Executive Officerex10-5.htm

Exhibit 10.5

    STRATEGIC ALLIANCE
AGREEMENT

     

    This
STRATEGIC ALLIANCE AGREEMENT (the “Agreement”) is made
effective this 21st day of March, 2008 (the “Effective Date”), by
and between TAG II, INC., a Delaware corporation, by and on behalf of itself and
its subsidiaries (collectively, “TAG”) and AMERICAN
LEISURE GROUP LIMITED, a British Virgin Islands corporation, by and on behalf of
itself, and, whether currently in existence now or hereafter, its affiliates,
and subsidiaries  (collectively,  “ALG”).

     

    RECITALS

     

    A. TAG
currently manages numerous leisure and franchise travel operations throughout
the United States under a variety of brands, organized into two
companies:  (i) TraveLeaders, LLC operating under the TraveLeaders
brand; and (ii) The Travel Franchise Group, Inc., comprised of franchised brands
including Carlson Wagonlit Travel Associates and Results! Travel®.  TAG
has approximately 1,700 franchised travel agency locations in the United States
and Canada and has combined travel bookings in excess of five billion
dollars.  For purposes of this Agreement, the term “TAG Products”
means consumer travel products and services offered or sold by TAG and its
Affiliated Companies under the above-described brands (and any successors or
additions to such brands).

     

    B. ALG is a
holding company formed to own United States-based resort companies and
operations and to become a fully integrated developer and operator of premium
destination resorts combining travel services, travel destination/resort
development, vacation club and resort management activities.  Such
activities include, but are not limited to the promotion and sale of whole or
fractional vacation ownership and the provision of short term
accommodations.  For purposes of this Agreement, the term “ALG
Resorts” refers to any resort properties directly or indirectly managed or
owned, whether in whole or in part, by ALG and its Affiliated
Companies.

     

    C. TAG and
ALG desire to hereby enter into a strategic alliance under which they will work
together in various respects to accomplish mutually beneficial business
objectives, as more particularly set forth herein.

     

    AGREEMENT

     

    NOW, THEREFORE, in
consideration of the premises and the mutual agreements herein set forth, the
parties hereto agree as follows:

     

     RECITALS
INCORPORATED.  The Recitals
contained herein are true and accurate and incorporated herein.  The
parties are entering into this Agreement relying upon the truth of the Recitals
contained herein.

     

     MUTUAL MOST-FAVORED NATION
PRICING.

     

     During
the term of this Agreement, TAG will offer all TAG Products to ALG and will
offer and sell the TAG Products to ALG for resale to ALG customers at prices and
pricing structures no less favorable to ALG than the prices and pricing
structures offered to any other customer of TAG, including any distributor,
agency, preferred partner, or other strategic alliance partner of
TAG.  The obligation this Section 2.1 shall be subject to any
restrictions on discounting or similar pricing concessions imposed upon TAG
under its senior credit facilities at any time during the term of this
Agreement.  The parties acknowledge and agree that TAG will not be
required to breach strategic alliance agreements similar hereto between it and
third-parties which exist on the Effective Date in order to comply with this
Section 2.1.  Notwithstanding the foregoing, if TAG’s senior lender
has pursuant to a subordination agreement between such senior lender and
American Leisure Equities Corporation (“ALEC”) blocked payments on that certain
Promissory Note, dated the date hereof, of TL Acquisition Group, LLC (“TLAG”) in
favor of ALEC, then during the continuance of such blockage TAG will permit ALG
to purchase such products at (i) cost, if such pricing is then permitted under
the terms of TAG’s senior credit facility; or (ii) if  cost-pricing is
not so permitted, then the lowest price permitted under TAG’s senior credit
facility.

     

     During
the term of this Agreement, ALG will offer and sell rooms at ALG Resorts to TAG
customers at room rates no less favorable than the room rates offered by ALG to
customers purchasing through any other travel agency (including web-based travel
agencies), based on the pricing in place at the time the room rates are made
available.

     

     In the
case of both of Sections 2.1 and 2.2 above, “TAG” shall refer to all of TAG and
its Affiliated Companies, and “ALG” shall refer to all of ALG and its Affiliated
Companies.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     ADDITIONAL COOPERATION.  In
addition to the obligations set forth in Sections 2.1 through 2.3, TAG and ALG
will, and will cause their respective Affiliated Companies, to use commercially
reasonable efforts to work together to identify and develop co-marketing and
joint marketing programs, mutual distribution opportunities, promotional and
advertising campaigns, information-sharing, and other mutually beneficial
programs and mechanisms, all with the purpose of furthering the respective
business objectives of the parties.

     

     CONFIDENTIALITY.

     

     Confidential Information
Defined. “Confidential
Information” includes all information relating to TAG’s or ALG’s
products, services, or business affairs that is of a confidential, proprietary,
or non-public nature, whether communicated orally or in writing, and whether in
tangible or intangible form, including, without limitation, financial data,
costs, margins, mailing or other marketing lists, customer lists, advertising,
promotion, product or program concepts, plans or proposals, or any other
information that is of a confidential, proprietary, or non-public
nature.  Confidential Information includes the specific terms of this
Agreement and the fact that Confidential Information may have been disclosed by
either party (a “Disclosing
Party”). Confidential Information
does not include information that was: (a) already known by the party receiving
Confidential Information (a “Receiving Party”);
(b) in the public domain or later entered the public domain through no wrongful
act or omission by the Receiving Party; (c) disclosed to the Receiving Party by
a third party having no obligation of confidentiality; (d) developed
independently by the Receiving Party without reference to any Confidential
Information; (e) ascertainable from a visual inspection of the Disclosing
Party’s public premises, products, services, or advertising or promotional
material; (or) the existence of this Agreement and the nature of the
relationship between the parties hereto, it being the express intention of the
parties that ALG will market its products and services by identifying its
relationship and preferred status with TAG.

     

     Obligations.  The
Receiving Party must: (a) keep the Disclosing
Party’s Confidential Information in strict confidence; (b) not, without the
prior written consent of the Disclosing Party, use, discuss, or disclose or
permit the use, discussion, or disclosure of Confidential Information other than
use by, discussion with, or disclosure to the Receiving Party’s directors,
officers, employees, affiliates, or representatives as necessary in performing
its obligations under this Agreement; (c) be responsible for
the compliance with this Agreement by its directors, officers, employees and
representatives; (d) not, without the
prior written consent of the Disclosing Party, contact any person or entity to
confirm any Confidential Information; (e) not, without the prior written consent
of the Disclosing Party, copy any Confidential Information except as necessary
in performing its obligations under this Agreement; and (f) immediately notify
the Disclosing Party in writing of any impermissible disclosure or use of
Confidential Information under this Agreement.  This Section 4.2 shall
not apply to disclosures made by the Receiving Party which are required by law;
provided, however, the
Receiving Party will promptly notify the Disclosing Party of any such legally
required disclosures made.

     

     Survival.  This
Section 4 shall survive the expiration or termination of this Agreement for any
reason.

     

     MARKS.

     

     TAG
Marks.  Nothing in this Agreement shall be construed as a
license to use any of TAG’s marks, including but not limited to: “B4 Travel
Group, Inc.”, “The Travel Franchise Group, Inc.”, “Connexions Loyalty Travel
Solutions LLC,”, “Carlson Wagonlit Travel”, “Cruise
Holidays”,  “Results Travel”, “SeaMaster Cruises”, or “emPower Travel”
trade names, trademarks, service marks, or logos (collectively, the “TAG Marks”) for any
purpose other than co-operative marketing efforts which must first be approved
in writing by TAG.  Upon expiration or termination of this Agreement,
ALG must discontinue all use of the TAG Marks.

     

     ALG
Marks.  Nothing in this Agreement shall be construed as a
license to use any of ALG’s trade names, trademarks, service marks or logos
(collectively, the “ALG Marks”) for any
purpose other than co-operative marketing efforts which must first be approved
in writing by ALG.  Upon expiration or termination of this Agreement,
TAG must discontinue all use of the ALG Marks.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     INDEMNIFICATION.

     

     By
TAG.  TAG shall indemnify, hold harmless and defend ALG and
each of its officers, directors, employees and agents from and against any and
all damages, losses, claims or expenses (including reasonable attorneys’ fees)
(collectively, “Losses”) relating to
claims arising out of the material breach of any term of this Agreement by TAG
(including, without limitation, the failure to comply with applicable federal,
state, and local laws); provided, however, that such
indemnification obligation shall not apply to the extent that any acts or
omissions by ALG contributed to such Losses.

     

     By
ALG.  ALG shall indemnify, hold harmless and defend TAG and
each of its officers, directors, employees and agents from and against any and
all Losses relating to claims arising out of the material breach of any term of
this Agreement by ALG (including, without limitation, the failure to comply with
applicable federal, state, and local laws); provided, however, that such
indemnification obligation shall not apply to the extent that any acts or
omissions by TAG contributed to such Losses.

     

     In no
event shall either party be liable to the other party for special punitive,
consequential or incidental damages, including lost profits, even if advised of
the possibility of such damages.

     

     TERMINATION AND
RENEWAL.

     

     Term.  The
initial term of this Agreement shall commence on the Effective Date and shall
continue until the fifth (5th)
anniversary of the Effective Date, which term will be automatically extended for
three (3) additional extension terms of five (5) years each unless the parties
by mutual written agreement determine not to extend the
term.  Notwithstanding the foregoing, either party may effect an
earlier termination of this Agreement (a) pursuant to Section 7.2
below.

     

     Termination.  In
the event of any material breach of this Agreement by a party, the other party
may (reserving cumulatively all other remedies and rights under this agreement
and in law and in equity), terminate this Agreement by giving thirty (30) days
prior written notice thereof to the other, any such cancellation to be without
prejudice to the rights of any party; provided, however, that the
Agreement will not terminate at the end of said thirty (30) day notice-period if
the party in breach has remedied the breach or taken substantial steps to remedy
the breach within the aforementioned thirty (30) day notice
period.  Notwithstanding the termination, for a period of ninety (90)
days following termination, the parties must honor specific identifiable
obligations which were incurred pursuant to Section 2 above that were incurred
prior to notice of termination.  In addition to the foregoing, (i)
upon no less than 180 days’ prior written notice, either party (a “Terminating
Party”) may terminate this Agreement upon a Sale Transaction (as defined below)
by the Terminating Party so long as the Terminating Party makes the buyer in the
Sale Transaction aware of this Agreement and exercises good faith efforts to
give the buyer an opportunity to continue or assume this Agreement (provided
that during the period following the closing of the Sale Transaction and through
the termination of this Agreement, the obligations hereunder shall only apply to
the business conducted by the Terminating Party and not to any other business
conducted by the buyer in the Sale Transaction), and (ii) TAG may terminate this
Agreement in the event of any breach by ALEC or American Leisure Holdings, Inc.
(“ALH”) of any material covenant in that certain Asset Purchase Agreement of
even date herewith among ALEC, TLAG, and ALH (the “Purchase Agreement”), or any
other agreement entered into by ALEC or ALH pursuant to the Purchase Agreement,
by giving thirty (30) days prior written notice of such breach to ALG; provided, however, that the
Agreement will not terminate at the end of said thirty (30) day notice-period if
ALEC and/or ALH (as the case may be) has remedied the breach within the
aforementioned thirty (30) day notice period.  The term “Sale
Transaction” means (a) a reorganization, merger or consolidation of a
Terminating Party with any other person or entity, other than one in which the
beneficial holders of the Terminating Party’s voting securities (or their
Affiliates) immediately prior the reorganization, merger, or consolidation hold
more than 50% of the combined voting power of the voting securities of the
Terminating Party (or the surviving or resulting entity in the transaction)
outstanding immediately after such merger or consolidation, or (b) the sale of
all or substantially all of Terminating Party’s assets and business to a person
or entity other than an Affiliate of the Terminating Party

     

     GENERAL.

     

     Right to
Audit.  TAG agrees that, upon reasonable request by ALG, not
more often than annually, TAG will provide ALG with its standard pricing
schedule.

     

     Merger.  This
Agreement contains the entire agreement between the parties with respect to the
subject matter of this Agreement and supersedes all earlier and contemporaneous
agreements, writings, statements, and understandings between the parties with
respect to the subject matter.

     

     Assignment; Modification;
Successors.  This Agreement may not be assigned by any party
without the prior written consent of all parties.  Subject to the
preceding sentence, this Agreement shall be binding upon and inure to the
benefit of any successors and assigns. This Agreement may not
be modified by any party except by a written agreement signed by all
parties.

     

     Severability.  If
any provision of this Agreement is deemed void or unenforceable by any court of
competent jurisdiction, that provision shall be stricken from this Agreement
without affecting the remaining provisions.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.  Delivery of a counterpart hereof via facsimile or
electronic mail transmission shall be as effective as delivery of a manually
executed counterpart hereof.

     

     Headings.  The
headings in this Agreement are for convenience of reference only and do not
alter or affect any provision of this Agreement.

     

     No
Waiver.  The rights and remedies of the parties to this
Agreement are cumulative. No failure or delay by any party in exercising any
right, power, or privilege under this Agreement shall operate as a waiver of or
shall preclude that party’s right to exercise that right, power, or
privilege.

     

     Expenses; Attorneys’
Fees.  If any legal action or other proceeding is brought for
the enforcement of this Agreement, or because of an alleged dispute, breach,
default, or a misrepresentation in connection with this Agreement, the
successful or prevailing party shall be entitled to recovery of reasonable
attorneys’ fees and other costs incurred in such action or proceeding, in
addition to any other relief to which that party may be entitled.

     

     Notices.  All
notices, requests, consents, or other communications provided for in or to be
given under this Agreement shall be in writing, may be delivered in person, by
facsimile transmission (fax), by overnight air courier or by mail, and shall be
deemed to have been duly given and to have become effective (i) upon
receipt if delivered in person or by fax, (ii) one day after having been
delivered to an overnight air courier, or (iii) three days after having
been deposited in the mails as certified or registered matter, all fees prepaid,
directed to the parties or their assignees at the addresses noted
below:

     

    
      	
                          If to
      TAG:

            	
              TL
      Acquisition Group LLC

            
	 
      	6442
      City West Parkway
	 
      	Minneapolis,
      MN 55344
	 
      	ATTN:  Chief
      Financial Officer and
	 
      	ATTN:  General
      Counsel
	 
      	
              Facsimile
      Number: (763) 212-1993

            
	 	 
	
                          With a
      copy to:

            	
              Alexander
      P. Fraser, Esq.

            
	 
      	
              Michael
      H. Altman, Esq.

            
	 
      	
              Michael
      Best & Friedrich LLP

            
	 
      	
              100
      East Wisconsin Avenue

            
	 
      	
              Milwaukee,
      WI  53202-4108

            
	 
      	
              Facsimile
      Number: (414) 277-0656

            
	 	 
	
                          If to
      ALG:

            	
              American
      Leisure Holdings, Inc.

            
	 
      	
              2460
      Sand Lake Road

            
	 
      	
              Orlando,
      FL  32809

            
	 
      	
              Attention:
      Matt Hagler

            
	 
      	
              Facsimile
      Number: (407) 251-8455

            
	 
      	 
      
	
                          With a
      copy to:

            	
              Curt
      Creely, Esquire

            
	 
      	Foley
      & Lardner LLP
	 
      	100
      North Tampa Street
	 
      	Suite
      2700
	 
      	Tampa,
      FL 33602-5810
	 
      	Phone:
      813-229-2300
	 
      	Fax:
      813-221-4210

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     Governing
Law.  This Agreement, and all claims under this Agreement shall
be governed by and construed under the laws of the State of Florida without
regard to principles of conflicts of laws calling for the application of laws of
another state.

     

     Relationship.  Each
party is an independent contractor, and the employees, representatives or agents
of each party shall not be deemed employees, representatives or agents of the
other party for any purpose.  Neither party shall have authority to
make commitments, enter into contracts on behalf of, or otherwise obligate the
other party in any manner.  The parties acknowledge that this
Agreement does not constitute a joint venture or partnership between the
parties.

     

     Expenses.  Except
as otherwise provided herein, each party shall be responsible for its own costs
incurred in relation to this Agreement.

     

     Definition of “Affiliated
Company”.  For purposes of this Agreement, “Affiliated Company”
means, with respect to any specified person or entity, any corporation or other
business entity that controls, is controlled by, or is under common control with
the person or entity so specified.

     

    [signatures
on following page]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered by
their duly authorized officers as of the Effective Date.

     

    
      	
              TAG
      II, INC.

               

               

              By:  /s/ Nicholas C. Bluhm,
      Sr.                                                              

              Type: 
      Nicholas C. Bluhm, Sr.  

              Its:  Secretary
      and
      Tresurer                                                             

               

            	
              AMERICAN
      LEISURE GROUP LIMITED

               

               

              By:  /s/ Malcolm J.
      Wright                                                             

              Type: 
      Malcolm J. Wright

              Its: 
      Chief
      Executive

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