Document:

Exhibit 10.1.4

 

Exhibit A

 

SCHEDULE OF PARTNERS,

ALLOCATION OF PARTNERSHIP UNITS, PERCENTAGE INTERESTS

AND THE AGREED UPON VALUE OF NON-CASH CAPITAL CONTRIBUTIONS

 

	
  Date Admitted

  	
   

  	
  Name and address of partners

  	
   

  	
  Value of non-

  cash capital

  contribution

  	
   

  	
  Partnership

  units issued

  	
   

  	
  Approx.

  Percentage

  Interests

  	
   

  	
  Federal ID #

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  05/22/1998

  	
   

  	
  Eagle Ridge
  Lease Company LLC

  16100 N. Greenway-Hayden Loop

  Scottsdale, AZ 85260

  	
   

  	
  $

  	
  1,198,750

  	
   

  	
  35,794

  	
   

  	
  0.49

  	
  %

  	
  52-2099405

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02/04/1997

  	
   

  	
  GTA LP, Inc.
  14 North Adger’s

  Wharf Charleston, SC 29401

  	
   

  	
  $

  	
  —

  	
   

  	
  7,302,479

  	
   

  	
  99.31

  	
  %

  	
  58-2290326

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02/04/1997

  	
   

  	
  GTA GP, Inc.
  14 North Adger’s

  Wharf Charleston, SC 29401

  	
   

  	
  $

  	
  —

  	
   

  	
  14,684

  	
   

  	
  0.20

  	
  %

  	
  58-2290217

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Common OP Units

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,352,957

  	
   

  	
  100.00

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GTA LP, Inc.

  14 North Adger’s Wharf

  Charleston, SC 29401

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  800,000

  	
   

  	
  100

  	
  %Exhibit 10.37

 

 

April 12, 2006

 

 

AEW Targeted Securities Fund, L.P.

World Trade Center East

Two Seaport Lane

Boston, MA 02210-2021

Attn: Mr. Robert G. Gifford

 

Re:                             Golf
Trust of America, Inc. — Option to Acquire Series A Convertible Redeemable
Preferred Stock

 

Gentlemen:

 

As you know, Golf Trust of America, Inc.
(the “Company”) has engaged Houlihan Lokey Howard & Zukin (“Houlihan”)
to assist the Company in its implementation of the Company’s stockholder
approved plan of liquidation or a recapitalization of the Company. In the
foregoing context, and in consideration of a more expeditious completion of the
Company’s liquidation process, which the Company expects will allow the Company
to maximize the value received by all of its stockholders, the Company requests
that AEW Targeted Securities Fund, L.P. (“AEW”) confirm by countersigning below
AEW’s agreement to and approval of the terms of this letter agreement (the “Agreement”).

 

1.                                      Option
Agreement.

 

1.1.                              AEW hereby grants the
Company the option (the “Option”), exercisable by the Company in the Company’s
sole discretion, to purchase, on or before June 30, 2006 (the “Option
Termination Date”), all 800,000 shares of the Company’s Series A
Cumulative Convertible Redeemable Preferred Stock held by AEW Targeted Securities
Fund, L.P. (“AEW”) including, without limitation, all of AEW’s rights to
Liquidation Preferences (as defined in the Company’s Articles Supplementary,
including, without limitation, Liquidation Preferences in respect of any
accrued and unpaid dividends) payable in respect of such shares as of the
Company’s exercise of the Option (the “Series A Shares”), for a total
price of $20,000,000.00 (the “Exercise Price”); provided,
however, that the Option shall only be exercisable by the Company in the event
that the business of the Westin Innisbrook Golf Resort (the “Resort”) is
purchased for cash consideration of no more than $35,000,000.

 

1.2                                 Except to the extent
expressly limited by the final clause of Section 1.1, exercise of the
Company’s purchase rights pursuant to the Option may be made at any time
on or

 

 

before the Option Termination Date by delivery to AEW in the manner set
forth in Section 7 of this Agreement of a duly executed notice of exercise
in the form set forth in Exhibit A hereto (the “Notice”),
provided that within three (3) business days of the date the Notice is
delivered to AEW, the Company shall have delivered to AEW the Exercise Price by
wire transfer or cashier’s check of immediately available funds drawn on a
United States bank.

 

1.3                                 Upon the Company’s
exercise of the Option and payment of the Exercise Price in accordance with the
provisions of Section 1.2, all rights of AEW pursuant to any agreements
between AEW and the Company, the Company’s Articles Supplementary or otherwise
shall terminate, and the Series A Shares shall be authorized and unissued
shares of Preferred Stock to which AEW shall no longer have any ownership
rights.

 

2.                                      Representations
and Warranties of AEW.

 

2.1                                 This Agreement has been duly authorized,
executed and delivered by or on behalf of AEW.

 

2.2                                 The execution and delivery by AEW of, and
the performance by AEW of its obligations under, this Agreement shall not
contravene (i) any provision of applicable law, or (ii) the
organizational documents of AEW, or (iii) any agreement or other
instrument binding upon AEW or any judgment, order or decree of any
governmental body, agency or court having jurisdiction over AEW, and no
consent, approval, authorization or order of, or qualification with, any
governmental body or agency is required for the performance by AEW of its
obligations under this Agreement.

 

2.3                                 AEW has, and on the date that the Company
exercises the Option (if the Option is exercised) will have (i) good and
marketable title to the Series A Shares to be sold by AEW free and clear
of all security interests, claims, liens, equities or other encumbrances known
to or arising through AEW (except for encumbrances arising under this
Agreement), and (ii) the legal right and power, and all authorization and
approval required by law, to (A) enter into this Agreement, and to (B) sell,
transfer and deliver the Series A Shares to be sold by AEW or a security
entitlement in respect of the Series A Shares.

 

2.4                                 Upon delivery to the Company of
certificates representing the Series A Shares to be sold by AEW, each
endorsed to the Company or in blank, by an effective endorsement and payable
therefore by the Company pursuant to this Agreement, the Company will, assuming
the Company does not have notice of any adverse claims thereof, acquire the Series A
Shares to be sold by AEW free and clear of adverse claims.

 

2.5                                 AEW has not transferred (i) any
rights or interest in the Series A Shares or (ii) any rights pursuant
to its agreements with the Company (“Contract Rights”).

 

2

 

3.                                      Representations
and Warranties of the Company.

 

3.1                                 This Agreement has been duly authorized,
executed and delivered by or on behalf of the Company.

 

3.2                                 The execution and delivery by the Company
of, and the performance by the Company of its obligations under, this Agreement
shall not contravene the organizational documents of the Company, or any
agreement or other instrument binding upon the Company or any judgment, order
or decree of any governmental body, agency or court having jurisdiction over
the Company, and no consent, approval, authorization or order of, or
qualification with, any governmental body or agency is required for the
performance by the Company of its obligations under this Agreement.

 

4.                                      Covenants
and Agreements of AEW.

 

4.1                                 AEW shall not transfer the Series A
Shares or Contract Rights unless each transferee receiving the Series A
Shares or Contract Rights enters into a binding written agreement with the
Company providing that (i) such transferee agrees to be bound by the
obligations of AEW under this Agreement, and (ii) such transferee will not
subsequently transfer any of the Series A Shares or Contract Rights
without the prior written consent of the Company.

 

4.2                                 In the event that AEW exercises any
redemption right on or before the Option Termination Date, or in the event that
a transaction involving the Company which would give AEW a right to liquidation
preference payments or mandatory redemption arises on or before the Option
Termination Date, the aggregate redemption price or liquidation payment, as the
case may be, in respect of the Series A Shares shall be the Exercise
Price.

 

4.3                                 At such time as the Company requests AEW’s
consent or approval in contemplation of a merger, acquisition or
recapitalization of the Company, a sale of all or substantially all of the
assets of the Company, or any similar transaction requiring its consent as the
holder of the Series A Shares, AEW will approve and consent to such
transaction, and will waive any rights to dissent from the approval of such a
transaction, provided that the Company will pay to AEW the Exercise Price
within three (3) business days of the Company’s exercise of the Option in
accordance with the terms of this Agreement in connection with such
transaction.

 

5.                                      Expenses. The Company
agrees to pay the reasonable and actually incurred legal expenses of AEW
associated with (i) this Agreement and (ii) AEW’s filings with the
Securities and Exchange Commission in connection with this Agreement.

 

6.                                      Governing
Law. This Agreement shall be deemed to have been executed
and delivered within the State of New York, and the rights and obligations of
the parties hereunder shall be construed and enforced in accordance with, and
governed by, the laws of the State of New York without regard to principles of
conflict of laws. Any action or proceeding arising from or relating to this
Agreement must be brought in New York, and each party irrevocably submits to
the jurisdiction and venue of any such court in any such action or proceeding.

 

7.                                      Notices. All
communications pursuant to this Agreement shall be in writing and shall be
mailed, hand delivered or telecopied and confirmed to the parties hereto as
follows:

 

3

 

If to the Company:

 

Golf Trust of America, Inc.

10 North Adgers Wharf

Charleston,
South Carolina  29401

Attention:  Mr. W. Bradley Blair, II

President &
Chief Executive Officer

 

with a copy to:

 

O’Melveny &
Myers LLP

275 Battery
Street, Suite 2600

San Francisco,
California 94111-3305

Facsimile:  (415) 984-8701

Attention:  Peter T. Healy, Esq.

 

If to AEW:

 

AEW Targeted
Securities Fund, L.P.

World Trade
Center East

Two Seaport
Lane

Boston, MA
02210-2021

Attention: Mr. Robert
G. Gifford

 

with a copy to:

 

Goodwin
Procter LLP

Exchange Place

53 State
Street

Boston,
MA  02109

Facsimile:  (617) 523-1231

Attention:  Laura C. Hodges Taylor, Esq.

 

Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (i) the
date of transmission, (ii) the business day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service, or (iii) upon
actual receipt by the party to whom such notice is required to be given. The
address for such notices and communications shall be as set forth above.

 

Any party hereto may change the address
for receipt of communications by giving written notice to the other party.

 

4

 

8.                                      Successors
Assignment. This Agreement shall inure
to the benefit of and be binding upon the parties hereto, and to their
respective successors, and no other person shall have any right or obligation
hereunder.

 

9.                                      Partial
Unenforceability. The invalidity or
unenforceability of any section, paragraph or provision of this Agreement shall
not affect the validity or enforceability of any other section, paragraph or
provision hereof. If any section, paragraph or provision of this Agreement is
for any reason determined to be invalid or unenforceable, there shall be deemed
to be made such minor changes (and only such minor changes) as are necessary to
make it valid and enforceable.

 

10.                         Remedies.
The Company, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific
performance of its rights under this Agreement. AEW agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of the provisions of this Agreement and hereby agrees to waive the
defense in any action for specific performance that a remedy at law would be
adequate.

 

11.                               Entire
Agreement. This Agreement constitutes the entire agreement of
the Company and AEW with respect to the matters discussed herein. Except as set
forth in this Agreement, all other agreements between the parties shall be in
full force and effect and unmodified.

 

12.                               Counterparts. This Agreement may be
executed in several counterparts with the same effect as if the parties
executing the several counterparts had all executed one counterpart.

 

Thank you.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  /s/W. Bradley Blair, II

  	
   

  
	
   

  	
   

  
	
   

  	
  W. Bradley Blair, II

  
	
   

  	
  Chief Executive Officer, President and

  
	
   

  	
  Chairman of the Board of Directors of

  
	
   

  	
  Golf Trust of America, Inc.

  

 

5

 

AGREED TO AND APPROVED BY:

 

“AEW”

 

AEW Targeted Securities Fund, L.P.

 

	
  By:

  	
  AEW TSF, L.L.C., its General Partner

  
	
   

  	
   

  
	
  By:

  	
  AEW TSF, Inc., its Managing Member

  
	
   

  	
   

  
	
  By:

  	
  /s/ Robert G. Gifford

  	
   

  
	
  Printed Name: Robert G. Gifford

  
	
  Title: President, AEW TSF, Inc.

  
				

 

6

 

EXHIBIT A

 

NOTICE OF
EXERCISE

 

	
  To: AEW Targeted Securities Fund, L.P.

  	
   

  	
  Date:       ,
  2006

  
	
  World Trade Center
  East

  	
   

  	
   

  
	
  Two Seaport
  Lane

  	
   

  	
   

  
	
  Boston, MA
  02210-2021

  	
   

  	
   

  
	
  Attn: Mr. Robert
  G. Gifford

  	
   

  	
   

  

 

The undersigned hereby elects to exercise the
Option granted pursuant to the attached letter agreement between AEW Targeted
Securities Fund, L.P. and Golf Trust of America, Inc. (the “Agreement”). Payment
of the Exercise Price shall be made in accordance with the provisions of Section 1.2
of the Agreement.

 

	
   

  	
  By:

  
	
   

  	
  Printed Name:

  
	
   

  	
  Title:

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