Document:

FIFTH AMENDMENT TO LOAN AGREEMENT AND OTHER LOAN DOCUMENTS

        This Fifth Amendment to Loan Agreement and Other Loan Documents (this “Amendment”), dated as of April 16, 2010 (subject to the effectiveness hereof as provided in Paragraph 4 below, the “Effective
        Date”), is entered into by and among (i) BLUEGREEN CORPORATION OF THE ROCKIES, a Delaware corporation (“Bluegreen of the Rockies”), (ii) BLUEGREEN GOLF CLUBS, INC., a Delaware corporation (“Bluegreen Golf”),
        (iii)BLUEGREEN PROPERTIES OF VIRGINIA, INC., a Delaware corporation (“Bluegreen Virginia”), (iv) BLUEGREEN SOUTHWEST ONE, L.P., a Delaware limited partnership (“Bluegreen Southwest”), (v) CATAWBA FALLS,
        LLC, a North Carolina limited liability company (“Catawba Falls”), (vi) BLUEGREEN COMMUNITIES OF TEXAS, L.P., a Delaware limited partnership (“Bluegreen Texas”), (vii) BLUEGREEN COMMUNITIES OF GEORGIA, LLC, a Georgia
        limited liability company (“Bluegreen Georgia”) (collectively, “Borrower”), (viii) BLUEGREEN CORPORATION, a Massachusetts corporation (“Bluegreen” or
        “Guarantor”, and collectively with Borrower, the “Borrower Parties”), and (ix) H4BG, LP, A Texas limited partnership (“H4BG” or “Lender”), as assignee
        of RFC CONSTRUCTION FUNDING, LLC, a Delaware limited liability company, formerly known as RFC Construction Funding Corp., a Delaware corporation (“RFC”).

        RECITALS:

        A.        Residential Funding Company, LLC, a Delaware limited liability company, formerly known as Residential Funding Corporation, a Delaware corporation (“Original Lender”) made a loan (the “Loan”) to
        Borrower in the amount of up to SEVENTY-FIVE MILLION AND NO/100 DOLLARS ($75,000,000.00), governed by that certain Loan Agreement, dated as of September 25, 2002, entered into by and between Borrower and Original Lender, as amended by (i) that certain First Amendment to Loan Agreement, dated as of February 18, 2003; (ii) that certain Second Amendment to Loan Agreement and Other Loan Documents, dated as of May 10, 2005; (iii) that certain Third Amendment to Loan Agreement and Other Loan
        Documents, dated as of October 21, 2005, and (iv) that certain Fourth Amendment to Loan Agreement and Other Loan Documents (the “Fourth Amendment”) dated as of July 1, 2009 (as so amended, restated, or modified, the “Loan Agreement”), and evidenced by that certain Revolving Promissory Note,
        dated as of September 25, 2002 (as amended, restated, supplemented, or modified to date, the “A Note”), executed by Borrower, as maker, payable to Original Lender in the stated principal amount of $50,000,000.00, and by that certain Revolving Promissory Note, dated as of May 10, 2005 (as amended, restated, supplemented, or modified to date, the
        “B Note”), executed by Borrower, as maker, payable to RFC (as the assignee of Original Lender) in the stated principal amount of $25,000,000.00 (the A Note and the B Note are collectively referred to herein as the “Notes”).

        B.        Original Lender previously assigned to RFC all right, title, and interest in and to the Loan Agreement, the A Note, and all Loan Documents (as defined in the Loan Agreement, hereinafter collectively, the “Loan Documents”), but not the funding obligations as lender
        thereunder (which obligations were specifically reserved by Original Lender). All funding obligations under the Loan Documents have been terminated.

        C.        Pursuant to that certain Loan Purchase and Sale Agreement dated as of April 16, 2010, RFC sold and assigned to H4BG all of its rights, titles, and interests in, to, and under, among other things, the Loan Agreement and all Loan Documents, including, without limitation, the Loan Documents described in Recital D below. H4BG is the owner
        of all right, title, and interest in and to the Loan Documents.

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        D.        Borrower’s obligations to Lender under the Notes and the Loan Documents are secured by, among other things (collectively, the “Collateral Documents”):

        (i)    the following documents with respect to that certain RC Martin Marietta (Havenwood) Project located in Comal County, Texas (the “Havenwood Project”);

        (a)       that certain Construction Deed of Trust with Security Agreement and Fixture Filing with Assignment of Rents, Proceeds and Agreements, dated as of July 20, 2005 (the “Havenwood Deed of Trust”), filed for record on July 21, 2005, under Clerk's File No.
        200506026535 in the Official Public Records of Comal County, Texas, executed by Bluegreen Southwest in favor of Robert W. Bramlette, as trustee (“Trustee”), for the benefit of RFC and its transferees, successors, legal representatives and assigns
        (“Beneficiary”), granting a first-priority lien on the Havenwood Project, together with all improvements existing or to be placed on said land, and all fixtures, equipment and personal property located on it and various rights in connection with it, together with the all hereditaments and appurtenances pertaining to said land;

        (b)       that certain Assignment of Construction Items, dated as of July 20, 2005, executed by Bluegreen Southwest in favor of RFC and its successors and assigns, granting a first-priority security interest in and lien on the personal property in connection with the Havenwood Project more particularly described therein;
        and

        (c)       that certain Assignment of Deed of Trust, dated as of April 16, 2010, executed by RFC, assigning to H4BG all of RFC’s right, title, and interest in the Havenwood Deed of Trust.

        (ii)   the following documents with respect to that certain RC Altimore 953 (King Oaks) Project located in Grimes County, Texas (the “King Oaks Project”):

        (a)       that certain Construction Deed of Trust with Security Agreement and Fixture Filing with Assignment of Rents, Proceeds and Agreements, dated as of June 27, 2006 (the “King Oaks Deed of Trust”), filed for record on October 30, 2006, in Volume 1192, Page
        567, in the Official Public Records of Grimes County, Texas, executed by Bluegreen Southwest in favor of Trustee, for the benefit of Beneficiary, granting a first-priority lien on the King Oaks Project, together with all improvements existing or to be placed on said land, and all fixtures, equipment and personal property located on it and various rights in connection with it, together with all hereditaments and appurtenances pertaining to said land;

        (b)       that certain Assignment of Construction Items, dated as of June 27, 2006, executed by Bluegreen Southwest in favor of RFC and its successors ad assigns, granting a first-priority security interest in and lien on the personal property in connection with the King Oaks Project more particularly described therein;
        and

        (c)       that certain Assignment of Deed of Trust, dated as of April 16, 2010, executed by RFC, assigning to H4BG all of RFC’s right, title, and interest in the King Oak Deed of Trust.

        (iii)  the following documents with respect to that certain RC Martin Ranch (The Bridges) Project located in Grayson County, Texas (the “Bridges Project”):

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        (a)       that certain Construction Deed of Trust with Security Agreement and Fixture Filing with Assignment of Rents, Proceeds and Agreements, dated as of March 1, 2006 (the “Bridges Deed of Trust”), filed for record on March 2, 2006, under Clerk's File No.
        2006-00005244 in the Official Public Records of Grayson County, Texas, executed by Bluegreen Texas in favor of Trustee, for the benefit of Beneficiary, granting a first-priority lien on the Bridges Project, together with all improvements existing or to be placed on said land, and all fixtures, equipment and personal property located on it and various rights in connection with it, together with all hereditaments and appurtenances pertaining to said land;

        (b)       that certain Assignment of Construction Items, dated as of March 1, 2005, executed by Bluegreen Texas in favor of RFC and its successors and assigns, granting a first-priority security interest in and lien on the personal property in connection with the Bridges Project more particularly described therein; and

        (c)       that certain Assignment of Deed of Trust, dated as of April 16, 2010, executed by RFC, assigning to H4BG all of RFC’s right, title, and interest in the Bridges Deed of Trust.

        (iv)  the following documents with respect to that certain Rompel 3316 (Vintage Oaks) Project located in Comal County, Texas (the “Vintage Oaks Project”):

        (a)       that certain Construction Deed of Trust with Security Agreement and Fixture Filing with Assignment of Rents, Proceeds and Agreements, dated as of April 25, 2006 (the “Vintage Oaks Deed of Trust”), filed for record on April 26, 2006, under Clerk's
        File No. 2006-06016592 in the Official Public Records of Comal County, Texas, as modified by that certain Deed of Trust Modification Agreement, dated as of October 31, 2006, filed for record on November 2, 2006, as Document No. 2006-06047147 in the Official Public Records of Comal County, Texas, executed by Bluegreen Southwest in favor of Trustee, for the benefit of Beneficiary, granting a first-priority lien on the Vintage Oaks Project, together with all improvements existing or to be
        placed on said land, and all fixtures, equipment and personal property located on it and various rights in connection with it, together with all hereditaments and appurtenances pertaining to said land;

        (b)       that certain Assignment of Construction Items, dated as of April 25, 2006, executed by Bluegreen Southwest in favor of RFC and its successors and assigns, granting a first-priority security interest in and lien on the personal property in connection with the Vintage Oaks Project more particularly described therein;
        and

        (c)       that certain Assignment of Deed of Trust, dated as of April 16, 2010, executed by RFC, assigning to H4BG all of RFC’s right, title, and interest in the Vintage Oaks Deed of Trust.

        (v)   the following documents with respect to that certain Sanctuary Cove Project located in Camden County, Georgia (the “Sanctuary Cove Project”):

        (a)       that certain Deed to Secure Debt and Security Agreement, dated as of February 16, 2007 (the “Sanctuary Cove Deed to Secure Debt”) filed for record on February 26, 2007, in Book 1332, Page 79 in the Office of the Georgia Clerk of Superior Court, Camden
        County, Georgia, executed by Bluegreen Georgia in favor of RFC and its successors and assigns, granting a first-priority lien on the Sanctuary Cove Project, 

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        together with all improvements existing or to be placed on said land, and all fixtures, equipment and personal property located on it and various rights in connection with it, together with all hereditaments and appurtenances pertaining to said land;

        (b)       that certain Assignment of Construction Items, dated as of February 16, 2007, executed by Bluegreen Georgia in favor of RFC and its successors and assigns, granting a first priority security interest in and lien on the personal property in connection with the Sanctuary Cove Project more particularly described therein;
        and

        (c)       that certain Assignment of Deed of Trust, dated as of April 16, 2010, executed by RFC, assigning to H4BG all of RFC’s right, title, and interest in the Sanctuary Cove Deed to Secure Debt.

        (vi)   the following documents with respect to that certain Golf Course at Sanctuary Cove located in Camden County, Georgia (the “Golf Club at Sanctuary Cove Project”):

        (a)       that certain Deed to Secure Debt, Security Agreement and Fixture Filing with Assignment of Rights, Proceeds and Agreements dated as of July 1, 2009, (the “Golf Course at Sanctuary Cove Deed to Secure Debt,” filed for record on July
        20, 2009, in Book 1486, Page 458 in the Office of the Georgia Clerk of Superior Court, Camden County, Georgia, executed by Bluegreen Golf in favor of RFC and its successors and assigns, granting a first priority lien on the Golf Club at Sanctuary Cove Project, together with all improvements existing or to be placed on said land, and all fixtures, equipment and personal property located on it and various rights in connection with it, together with all hereditaments and appurtenances
        pertaining to said land;

        (b)       that certain Assignment of Construction Agreements and Development Items, dated as of July 1, 2009, executed by Bluegreen Golf in favor of RFC and its successors and assigns, granting a first priority security interest in an lien on certain documents, agreements, and other items relevant to the development of the Golf Club
        at Sanctuary Cove Project; and

        (c)       that certain Assignment of Deed of Trust, dated as of April 16, 2010, executed by RFC, assigning to H4BG all of RFC’s right, title, and interest in the Golf Course at Sanctuary Cove Deed to Secure Debt.

        E.        Borrower's obligations to Lender under the Notes and the Loan Documents are also assured by, among other things, that certain Guaranty Agreement, dated as of September 25, 2002 (the “Guaranty”) executed by Bluegreen in favor of Lender.

        F.        Lender and the Borrower Parties hereby desire to modify the Loan Agreement and the Loan Documents as herein provided, subject to the terms, conditions, covenants, and limitations contained in this Amendment.

        ACKNOWLEDGMENTS AND CONFIRMATIONS:

        (a)       The Borrower Parties hereby acknowledge and agree to the accuracy of all Recitals included in this Amendment.

        (b)       The Borrower Parties acknowledge and agree that as of close of business on April 15, 2010, the outstanding principal amount of the Loan is $36,391,159.84 (exclusive of costs, fees and other expenses).

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        (c)       The Borrower Parties confirm that there are no offsets, deductions, defenses, or counterclaims with respect to any obligations of the Borrower under the Loan Documents or of Bluegreen under the Guaranty.

        (d)       No other entity is a “Borrower” under the Loan Documents, other than the Borrower Parties.

        (e)       Each Borrower confirms that the Loan Documents constitute a valid and binding obligation of such Borrower, enforceable in accordance with their respective terms; and each Borrower reconfirms its joint and several obligations to pay all indebtedness and obligations now or hereafter arising under the Loan Documents. Bluegreen confirms that
        the Guaranty constitutes a valid and binding obligation of Bluegreen, enforceable in accordance with its terms.

        (f)       The Borrower Parties hereby acknowledge and confirm that Lender and Original Lender have no further obligation to advance Loan disbursements under the Loan Agreement, the other Loan Documents, or otherwise.

        AGREEMENT:

        NOW, THEREFORE, in consideration of the premises herein set forth and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, agree to the above Recitals, the above Acknowledgments and Confirmations, and as follows:

        1.         Definitions. Unless otherwise indicated herein, all capitalized terms used but not otherwise defined in this Amendment shall have the meanings ascribed to them in the Loan Agreement. Unless otherwise specified, (a) all section references herein refer to sections of the
        Loan Agreement, and (b) all paragraph references herein refer to paragraphs in this Amendment.

        2.         Addenda to Notes. On the Effective Date, Borrower shall execute and deliver to Lender the Addenda to the Notes in the form attached hereto as Schedule 1-A and
        1-B (the “Addenda to Notes”).

        3.         Amendments to the Loan Agreement. Effective as of the Effective Date, the Loan Agreement shall be amended, as follows:

        3.1       Section 1.1 of the Loan Agreement is amended, by adding the following definitions in the correct alphabetical order in such Section:

        “Fifth Amendment” means that certain Fifth Amendment to Loan Agreement and Other Loan Documents, dated as of April 16, 2010, among Borrower, Guarantor, and H4BG, as Lender.

        “Fifth Amendment Effective Date” means the “Effective Date” as defined and determined in accordance with the Fifth Amendment.

        “Fourth Amendment” means that certain Fourth Amendment to Loan Agreement and Other Loan Documents, dated as of July 1, 2009, among Borrower, Guarantor, and RFC Construction Funding, LLC, as Lender.

        “Fourth Amendment Effective Date” means the “Effective Date” as defined and determined in accordance with the Fourth Amendment.

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        “Fourth Amendment Principal Paydown” means the $10,000,000 paid by Borrower on the Fourth Amendment Effective Date as required by the Fourth Amendment.

        “Permitted Transfer” means:

        (a) a transfer, conveyance, or assignment by any Borrower of an interest in a Borrower and/or in a Project or other collateral owned by such Borrower which secures the Loan to an entity which is directly or indirectly wholly owned by Guarantor (a “Permitted Transferee”), so long as (i) prior to
        such transfer, conveyance, or assignment, such Borrower shall notify the Lender of such proposed transfer, conveyance, or assignment, (ii) if such transfer, conveyance, or assignment is of an interest in a Project or other collateral securing the Loans, then the applicable Permitted Transferee shall become a Borrower under the Loan Documents, assume all obligations of a Borrower then or thereafter arising under the Loan Agreement and other Loan Documents, and agree to be bound by and
        comply with all the terms of the Loan Agreement and other Loan Documents, (iii) such Borrower, Guarantor, and the applicable Permitted Transferee shall execute such documents reasonably requested by the Lender to evidence the continuation of the Guaranty and the perfected security interests and liens in favor of the Lender in and to the Project or other collateral so transferred, conveyed, or assigned; and (iv) the Borrower making such transfer, conveyance, or assignment shall continue
        to be a Borrower under the Loan Documents, and 

        (b) the sale of any Lot or Golf Parcel made in accordance with the terms of the Loan Documents and for which the release price has been paid.

        3.2       The following definitions in Section 1.1 are amended, as follows:

        (a)       The definition of “Loan Amount” is amended in is entirety to read, as follows:

        “Loan Amount” means (a) prior to the Fourth Amendment Effective Date, $75,000,000 and (b) on and after the Fourth Amendment Effective Date, $57,607,368.00, as such amount may be reduced from time to time in accordance with the Loan Agreement and the other related Loan Documents.

        (b)       “Lender” means H4BG, LP, a Texas limited partnership, and its successors and assigns, as assignee of RFC Construction Funding, LLC.

        (c)       The definition of “Schedule A Value” is amended in its entirety to read, as follows:

        “Schedule A Value” means either (i) the values set forth on Exhibit H with respect to each Lot developed or being developed in each Project on the Fifth Amendment Effective Date in accordance with the related Map or (ii) with respect to
        any undeveloped property or any portion thereof not covered by a Map on the Fifth Amendment Effective Date, the values of such property determined on a per Lot basis as submitted by Borrower and approved by Lender at such time as a Map covering such property is recorded with the appropriate governmental or regulatory authorities and approved by Lender.

        (d)       The definition of “Transfer” is amended and restated in its entirety to correct formatting, as follows:

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        “Transfer” means the occurrence of any of the following (provided that any sales, transfers, mergers, or consolidations described in clause (b), clause (c)(1)-(6), or
        clause (d)(1)-(6) shall not constitute a Transfer to the extent such sale, transfer, merger, or consolidation, as the case may be, is to or with the Guarantor or any Borrower that is directly or indirectly wholly-owned by Guarantor):

        (a)       with respect to any Project and/or any entity comprising the Borrower:

        (1)       any sale, conveyance, assignment, transfer, alienation, mortgage, conveyance of security title, encumbrance or other disposition of any kind of the Project, or any other transaction the result of which is, directly or indirectly, to divest the Borrower of any portion of its title to or interest in the Project, voluntarily
        or involuntarily, other than transfers and sales of the Lots and Golf Parcels in the ordinary course of business, it being the express intention of the Borrower and the Lender that the Borrower is prohibited from granting to any Person a lien or encumbrance upon a Project (other than Permitted Exceptions), regardless of whether such lien is senior or subordinate to the Lender’s lien;

        (2)       any sale, conveyance, assignment, transfer, alienation, mortgage, conveyance of security title, encumbrance or other disposition of any kind of any other collateral for the Loan, or any other transaction the result of which is, directly or indirectly, to divest the Borrower of any portion of its title to or interest in
        such collateral, voluntarily or involuntarily, it being the express intention of the Borrower and the Lender that the Borrower is prohibited from granting to any Person a lien or encumbrance upon such other collateral, regardless of whether such lien is senior or subordinate to the Lender’s lien, other than Permitted Exceptions;

        (3)       any merger, consolidation or dissolution involving the Borrower; or

        (4)       the sale or transfer of a majority of the assets of the Borrower;

        (b)       with respect to any Borrower which is a corporation:

        (1)       the transfer of any portion of the voting stock of the Borrower; 

        (2)       the transfer of any portion of the voting stock of any corporation which is the direct or indirect owner of 10% or more of the voting stock of the Borrower; 

        (3)       the transfer of any partnership interest in any partnership which is the direct or indirect owner of 10% or more of the voting stock of the Borrower; or

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        (4)       the transfer of any membership interest in any limited liability company which is the direct or indirect owner of 10% or more of the voting stock of the Borrower;

        (c)       with respect to any Borrower which is a partnership:

        (1)       any merger, consolidation or dissolution involving the general partner of the Borrower;

        (2)       the sale or transfer of a majority of the assets of any general partner of the Borrower;

        (3)       the transfer of any general partnership interest in the Borrower to another Person;

        (4)       with respect to any general partner of the Borrower which is a corporation, the transfer of any portion of the voting stock of such general partner to another Person;

        (5)       with respect to any general partner of the Borrower which is a general partnership or limited partnership, the transfer of any partnership interest of such general partner to another Person;

        (6)       with respect to any general partner of the Borrower which is a limited liability company, the transfer of any membership interest of such general partner to another Person;

        (7)       the conversion of any general partnership interest of the Borrower to a limited partnership interest; or

        (8)       the addition of any general partner or limited partner to the Borrower;

        (d)       with respect to any Borrower which is a limited liability company:

        (1)       any merger, consolidation or dissolution involving the managing member of the Borrower;

        (2)       the sale or transfer of a majority of the assets of any managing member of the Borrower;

        (3)       the transfer of any managing member interest in the Borrower to another Person;

        (4)       with respect to any managing member of the Borrower which is a corporation, the transfer of any portion of the voting stock of such managing member to another Person;

        (5)       with respect to any managing member of the Borrower which is a general partnership or limited partnership, the transfer of any partnership interest of such general partner to another Person;

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        (6)       with respect to any managing member of the Borrower which is a limited liability company, the transfer of any membership interest of such general partner to another Person;

        (7)       the conversion of any managing member interest of the Borrower to a non-managing member interest; or

        (8)       the addition of any managing member or member to the Borrower.

        3.3       The provisions of Section 2.3 and Section 2.4 regarding Commitment Fees are deleted in their entirety and substituted therefore in each case is
        “[Reserved]”.

        3.4       The provisions of Section 2.7(2) with respect to the release price of Golf Parcels is amended and restated in its entirety to read as follows:

        “(2) Upon the closing of the sale of any Golf Parcel, whether in whole or in part, Lender shall receive as a principal payment on the Loan, at the closing of such sale or sales, seventy-five (75%) of the net sales proceeds shown on the closing statement therefor and shall, subject to satisfaction of all conditions set forth in the Loan Documents with respect to
        permitted sales of Golf Parcels concurrently release Lender’s lien on such Golf Parcel. Lender shall have the right to approve any such closing statements and the amount of such net sale proceeds as a condition to Borrower’s ability to sell any such Golf Parcel. The remittance of such portion of the net sales proceeds from all or any part of the Golf Parcel shall not be applied toward the minimum mandatory prepayments provided for in Section
        2.7(6) of the Loan Agreement.

        3.5       Section 2.7(7) (Deferred Cash Payment) is amended by substituting “Lender” for each reference to “RFC” therein.

        3.6     Section 3.3(e) regarding the ABF Funding System is deleted in its entirety.

        3.7       The initial paragraph of Section 5.4(a) (Insurance) is deleted in its entirety and the following is substituted therefor:

        “(a) Each of the entities comprising the Borrower will maintain the insurance required by the terms of this Loan Agreement and will deposit with the Lender certificates of insurance issued by insurance companies with current Best’s Key Ratings of not less than B+VII, written in form and content acceptable to the Lender, providing the following minimum
        insurance coverages:”.

        3.8       The last sentence of Section 5.6 (Sole Lender; No Transfers) is amended to read, as follows:

        “The entities comprising the Borrower will not make any Transfer (other than a Permitted Transfer) unless the Borrower has obtained the written consent of the Lender, which consent may be granted or withheld in the Lender’s sole and absolute discretion.”

        3.9       The second sentence of Section 6.15 (Lender Inspections, Appraisal and Information) is amended to read, as follows:

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        “The Borrower will cooperate with the Lender to enable the Lender, the Inspector or such other authorized representatives of the Lender to conduct such visits, inspections and appraisals, as the Lender may reasonably request.”

        3.10     The parenthetical in the first sentence of Section 6.18 (Conveyance, Lease or Encumbrance) is amended to read as follows:

        “(other than Permitted Transfers and the sale of Lots and Golf Parcels on and subject to the terms of the Loan Agreement)”.

        3.11     Section 6.22 (Negative Covenants) is amended by deleting the period at the end thereof and adding the following phrase at the end thereof:

        “or pursuant to a Permitted Transfer or Permitted Exceptions.”

        3.12     Section 7.2 (Releases from Lien of Deed of Trust) is hereby amended, as follows:

        (a)       The first sentence of Section 7.2(a) is amended by changing the period at the end thereof to a comma and adding the following clause:

        “but shall expressly exclude from such release the Lender’s liens and security interests in Borrower’s interest in the underlying oil, gas, and mineral interests.”

        (b)       The second sentence of Section 7.2is amended by adding the following parenthetical after the words “Project Security Instruments” in the fifth line thereof:

        “(other than releases of the Lender’s liens and security interests in Borrower’s interests in the underlying oil, gas, and mineral interests)”.

        (c)       Subsection 7.2(a)(1) is amended by deleting the “and” between clauses (iii) and (iv) and adding a new clause
        (v), as follows:

        “and (v) that the specific Lot and/or Golf Parcel to be released and conveyed does not include any oil, gas, or mineral interests related to such Lot or Golf Parcel, which oil, gas, and mineral interests shall be expressly reserved by Borrower and remain subject to the liens and security interests of the Lender therein.”

        (d)       Subsection 7.2(b)(3) is amended to read, as follows:

        “(3) such requested release is consistent in all material respects with the materials delivered to the Lender pursuant to Section 6.18 and with the site plan or other depiction of the Project provided to the Lender as part of the Project Underwriting Documents; and copies of all dedications or conveyance
        documents to be entered into with respect to the requested release have been delivered to the Lender and are reasonably acceptable to Lender and shall expressly reserve any interest of Borrower in and to the underlying oil, gas and mineral interests, which interests shall remain subject to the liens and security interests of the Lender.”

        3.13     Exhibit H. A new Exhibit H listing the Schedule A Values for the Lots in each Project shall be added to the Loan Agreement in the form of Schedule 2 hereto.

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        4.         Authorization to File Financing Statements. By execution hereof, each Borrower authorizes the Lender to file against such Borrower, one or more financing, continuation, or amendment statements pursuant to the Uniform Commercial Code in form and substance satisfactory to
        the Lender, including, without limitation, (a) with respect to each Borrower, financing statements in substantially the form of Annex A-1 and Annex A-2 hereto and (b) with respect Bluegreen Georgia, a financing statement, substantially in the form of Annex B hereto.

        5.         Amendment Effective Date. This Amendment shall be binding upon Lender and the Borrower Parties on the last day upon which each of the following conditions have been satisfied, at which time this Amendment shall be deemed effective as of April 16, 2010 (the
        “Fifth Amendment Effective Date”).

        5.1       Counterparts of this Amendment shall have been executed by Lender and all of the Borrower Parties and delivered to Lender, or when Lender shall have received telecopied, telexed, or other evidence satisfactory to it that all Borrower Parties have executed and are delivering this Amendment to Lender.

        5.2       The Addenda to Notes in the form of Schedule 1-A and Schedule 1-B have been executed and delivered by all entities comprising the Borrower.

        5.3       Amendments to Deed of Trust substantially in the form of Annex C-1 orC-2, as the case may be, have been executed by each Borrower and duly acknowledged.

        5.4       Each Borrower Party shall have delivered to Lender copies (certified by the Secretary or Assistant Secretary of such Borrower) of all corporate or organizational action taken by such Borrower to authorize the execution, delivery, and performance of this Amendment and the related Amendment documents delivered pursuant to this
        Amendment.

        5.5       Each Borrower Party shall have delivered to Lender an Incumbency Certificate executed by the Secretary or Assistant Secretary of the respective Borrower and certifying the officers authorized to execute this Amendment, the documents delivered pursuant to this Amendment, and other Loan Documents, and certifying the signatures of such
        officer.

        6.         Ratifications, Representations, and Warranties. As a material inducement to H4BG to purchase the Loan from RFC and to enter into this Amendment as Lender, each Borrower Party hereby represents and warrants to H4BG, individually and as the Lender (with the knowledge and
        intent that H4BG is relying upon the same (i) in purchasing RFC’s rights under the Loan Agreement and Loan Documents pursuant to the Purchase and Sale Agreement of even date herewith between RFC, as Seller, and H4BG, as Purchaser (the “Purchase Agreement”) and (ii) in entering into this Amendment):

        6.1       The execution, delivery and performance of this Amendment and any and all other agreements executed and/or delivered in connection herewith have been authorized by all requisite corporate, limited liability company, or partnership action, as applicable, on the part of such Borrower Party, and will not violate (i) the Articles or Certificate
        of Incorporation, By-Laws, Limited Partnership Agreement, or Operating Agreement of such Borrower Party, or (ii) the Articles or Certificate of Incorporation, By-Laws, or Operating Agreement of the general partner of such Borrower Party, as and if applicable. 

        6.2       The representations and warranties contained in this Amendment, the Loan Agreement, and the Loan Documents are true and correct on and as of the Effective Date as though made on and as of such date, excluding matters of litigation noted on Schedule 3.

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        6.3       The maturity of the Notes has not been accelerated, and no breach, no Potential Default or Event of Default under the Loan Agreement (as herein amended), or failure of performance under any Loan Document has occurred and is continuing.

        6.4       The execution, delivery, and performance of the transactions contemplated hereby will not (a) violate any judgment, order, ruling, injunction, decree or award of any court, administrative agency or governmental body against, or binding upon, such Borrower Party, (b) constitute a violation by such Borrower Party of any law or regulation of any
        jurisdiction applicable to such Borrower Party, (c) require any governmental approvals, (d) conflict with, result in a breach of, or constitute a default under any indenture, agreement, or other instrument to which such Borrower Party is a party or by which it or any of its respective properties may be bound; or (e) result in or require the creation or imposition of any Lien upon or with respect to any property encumbered by any of the Collateral Documents or any property now owned or
        hereafter acquired by such Borrower Party (other than Liens created by the Collateral Documents).

        6.5       None of the liens or security interests created by the Loan Documents secures any debt, other than the Loan evidenced by the Notes; none of Lender, RFC, Original Lender, or any predecessor or successor in interest to RFC or Original Lender has made any agreement to extend any further credit to be secured by the Deeds of Trust, by liens upon
        the property described in each such Deed of Trust, or by liens or security interests granted by the other Loan Documents.

        6.6       This Amendment was reviewed by such Borrower Party, and such Borrower Party acknowledges and agrees that such Borrower Party (i) understands fully the terms of this Amendment and the consequences of the issuance hereof, (ii) has been afforded an opportunity to have this Amendment reviewed by, and to discuss this Amendment with, such attorneys
        and other persons as such Borrower Party may wish, and (iii) has entered into this Amendment of its own free will and accord and without threat or duress; and such Borrower Party hereby represents and warrants that this Amendment and all information furnished to Lender are made and furnished in good faith, for value and valuable consideration; and this Amendment has not been made or induced by any fraud, duress or undue influence exercised by Lender or any other person.

        7.         Confirmation of Guaranty. Bluegreen consents to the execution of this Amendment and acknowledges that it is its desire to fully guarantee the payment and performance in full of the Loan made pursuant to the terms of the Loan Agreement and the other Loan Documents, as
        amended hereby, in accordance with the terms and conditions of the Guaranty. Bluegreen hereby: (a) reaffirms and restates as of the Effective Date all of such Bluegreen’s representations and warranties set forth in the Guaranty; (b) affirms that the Guaranty shall remain in full force and effect; (c) affirms that its liability under the Guaranty shall continue undiminished by this Amendment and the documents executed in connection herewith; (d) represents and warrants that no
        event has occurred and no condition currently exists that would constitute a default under the Guaranty by Bluegreen or under the Loan Agreement or any of the other Loan Documents by Borrower or any other surety; and (e) acknowledges that Original Lender, RFC, and Lender have performed and are not in default of their obligations under the Loan Documents.

        8.         Miscellaneous. 

        8.1       Effect on Loan Documents. The Loan Agreement and all related Loan Documents shall remain unchanged and in full force and effect, except as provided in this Amendment, and are hereby ratified and confirmed. On and after the Effective Date, all references to the
        “Loan Agreement” shall be to the Loan Agreement as herein amended. The execution, delivery, and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any rights of the Lenders under the Loan Agreement or any Loan Documents, nor constitute a waiver under the Loan Agreement or any other provision of the Loan Documents.

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        8.2       Survival of Representations and Warranties. All representations, warranties, covenants, and agreements of the parties made in this Amendment, the Loan Agreement, or any of the Loan Documents, including, without limitation, any document furnished in connection with this Amendment, shall
        survive the execution and delivery hereof, until such time as all of the obligations of the parties hereto shall have lapsed in accordance with their respective terms or shall have been discharged in full, and no investigation by Lender or subsequent event shall affect the representations and warranties or the right of Lender to rely upon them.

        8.3       Misrepresentation. The Borrower Parties shall indemnify and hold Lender harmless from and against any losses, damages, costs, and expenses (including reasonable attorneys' fees) incurred by Lender as a direct or indirect result of (a) breach of any representation or warranty contained
        in this Amendment, or (b) any breach or default under any of the covenants or agreements contained in this Amendment.

        8.4       Covenants and Agreements. The Borrower Parties hereby agree and acknowledge that they are well and truly indebted to Lender for the indebtedness and obligations of such Borrower Parties under the Loan Documents (without offset, counterclaim, or reduction) pursuant to the terms of the
        Loan Agreement and the Loan Documents, and hereby agree to observe, comply with, and perform all of the obligations, terms and conditions under or in connection with the Loan Agreement and the Loan Documents.

        8.5       Ratification of Liens and Security Interests. The Borrower Parties agree that nothing contained in this Amendment shall affect or impair the validity or priority of the liens and security interests under the Loan Agreement or the Loan Documents. The Borrower Parties hereby acknowledge
        and agree that the liens and security interests of the Loan Agreement and the Loan Documents are valid and subsisting liens and security interests and are superior to all liens and security interests other than those permitted under the Loan Agreement or the Loan Documents.

        8.6       Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment, and the effect thereof shall be confined to the provision so held to be invalid or
        unenforceable.

        8.7       Headings. The headings of the sections and subsections of this Amendment are inserted for convenience only and do not constitute a part of this Amendment.

        8.8       Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Amendment by facsimile shall have the same force and
        effect as the delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by facsimile shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Amendment.

        8.9       No Commitment. No Further Advances. The Borrower Parties agree that Lender, RFC, and/or Original Lender have not made any commitment or other agreement regarding the Loan Agreement or the Loan Documents, except as expressly set forth therein or in this Amendment. The Borrower Parties
        warrant and represent that they will not rely on any commitment, agreement to forbear, or other agreement on the part of Lender unless such commitment or agreement is in writing and signed by Lender. Borrower agrees and confirms that since the Effective Date of the Fourth Amendment, no advances have been made by Original Lender under the Loan Documents. 

        Page 13

        

        

        

        8.10     Time of Essence. The parties to this Amendment have agreed specifically with regard to the times for performance set forth in this Amendment. Further, the parties to this Amendment acknowledge that the agreements with regard to the times for performance are material to this Amendment. Therefore,
        the parties agree and acknowledge that time is of the essence to this Amendment.

        8.11     Law Governing. THIS AMENDMENT SHALL BE INTERPRETED AND THE RIGHTS OF THE PARTIES DETERMINED IN ACCORDANCE WITH THE LAWS OF THE UNITED STATES APPLICABLE THERETO AND THE INTERNAL LAWS OF THE STATE OF VIRGINIA APPLICABLE TO AN AGREEMENT EXECUTED, DELIVERED AND PERFORMED THEREIN, WITHOUT GIVING
        EFFECT TO THE CHOICE-OF-LAW RULES THEREOF OR ANY OTHER PRINCIPLE THAT COULD REQUIRE THE APPLICATION OF THE SUBSTANTIVE LAW OF ANY OTHER JURISDICTION.

        8.12     Waiver; Modification. NO PROVISION OF THIS AMENDMENT MAY BE WAIVED, CHANGED OR MODIFIED, OR THE DISCHARGE THEREOF ACKNOWLEDGED, ORALLY, BUT ONLY BY AN AGREEMENT IN WRITING SIGNED BY THE PARTY AGAINST WHOM THE ENFORCEMENT OF ANY WAIVER, CHANGE, MODIFICATION OR DISCHARGE IS SOUGHT. NO DELAY ON THE
        PART OF LENDER IN EXERCISING ANY RIGHT, POWER OR PRIVILEGE HEREUNDER, SHALL OPERATE AS A WAIVER THEREOF, NOR SHALL ANY WAIVER OF ANY RIGHT, POWER OR PRIVILEGE HEREUNDER OPERATE AS A WAIVER OF ANY OTHER RIGHT, POWER OR PRIVILEGE HEREUNDER, NOR SHALL ANY SINGLE OR PARTIAL EXERCISE OF ANY RIGHT, POWER OR PRIVILEGE HEREUNDER PRECLUDE ANY OTHER OR FURTHER EXERCISE THEREOF, OR THE EXERCISE OF ANY OTHER RIGHT, POWER OR PRIVILEGE HEREUNDER. ALL RIGHTS AND REMEDIES HEREIN PROVIDED ARE CUMULATIVE
        AND ARE NOT EXCLUSIVE OF ANY RIGHTS OR REMEDIES WHICH THE PARTIES HERETO MAY OTHERWISE HAVE AT LAW OR IN EQUITY. FURTHER, ANY FAILURE BY LENDER TO EXERCISE ANY RIGHT, PRIVILEGE OR REMEDY SHALL NOT DIRECTLY OR INDIRECTLY IN ANY WAY WHATSOEVER EITHER: (A) IMPAIR, PREJUDICE, OR OTHERWISE ADVERSELY AFFECT LENDER'S RIGHT AT ANY TIME TO EXERCISE ANY RIGHT, PRIVILEGE, OR REMEDY IN CONNECTION WITH THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS, OR (B) CONSTITUTE ANY COURSE OF DEALING OR OTHER
        BASIS FOR ALTERING ANY OBLIGATIONS OF BORROWER OR ANY RIGHT, PRIVILEGE, OR REMEDY OF LENDER UNDER THE LOAN AGREEMENT OR THE LOAN DOCUMENTS.

        8.13     Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER OR LENDER HEREBY IRREVOCABLY AND EXPRESSLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AMENDMENT
        OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF LENDER IN THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT THEREOF.

        8.14     Final Agreement. THIS AMENDMENT AND THE LOAN DOCUMENTS REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE EFFECTIVE DATE. NEITHER THIS AMENDMENT NOR THE LOAN DOCUMENTS MAY BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
        AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

        8.15     Release by Borrower Parties. EACH OF THE BORROWER PARTIES HEREBY ACKNOWLEDGES THAT AS OF THE EFFECTIVE DATE IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM, OR DEMAND OF ANY KIND OR 

        Page 14

        

        

        

        NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE OBLIGATIONS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDER, RFC, ORIGINAL LENDER, OR THEIR RESPECTIVE AFFILIATES, PARTICIPANTS, MEMBERS, PARTNERS, AGENTS, ATTORNEYS, OFFICERS, DIRECTORS, AGENTS, EMPLOYEES, SUCCESSORS, ASSIGNS, AND PREDECESSORS, AND EACH OF THE BORROWER
        PARTIES HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, RFC, ORIGINAL LENDER, AND THEIR RESPECTIVE AFFILIATES, PARTICIPANTS, MEMBERS, PARTNERS, PREDECESSORS, AGENTS, OFFICERS, DIRECTORS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN
        EQUITY, FOR MATTERS ARISING ON OR BEFORE THE EFFECTIVE DATE, WHICH SUCH RELEASING PARTY MAY NOW OR HEREAFTER HAVE AGAINST LENDER, RFC, ORIGINAL LENDER, AND THEIR RESPECTIVE AFFILIATES, PARTICIPANTS, MEMBERS, PARTNERS, AGENTS, OFFICERS, DIRECTORS, EMPLOYEES, ATTORNEYS, SUCCESSORS, ASSIGNS, AND PREDECESSORS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM THE OBLIGATIONS, THE EXERCISE OF ANY
        RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR THE LOAN DOCUMENTS, THE PURCHASE AND ASSIGNMENT OF THE LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT. EACH OF THE BORROWER PARTIES HEREBY COVENANTS AND AGREES NEVER TO INSTITUTE ANY ACTION OR SUIT AT LAW OR IN EQUITY, NOR INSTITUTE, PROSECUTE, OR IN ANY WAY AID IN THE INSTITUTION OR PROSECUTION OF ANY CLAIM, ACTION OR CAUSE OF ACTION, RIGHTS TO RECOVER DEBTS OR DEMANDS OF ANY NATURE AGAINST LENDER, RFC, ORIGINAL
        LENDER, AND THEIR RESPECTIVE AFFILIATES, PARTICIPANTS, MEMBERS, PARTNERS, AGENTS, ATTORNEYS, OFFICERS, DIRECTORS, EMPLOYEES, SUCCESSORS, ASSIGNS, AND PREDECESSORS ARISING OUT OF OR RELATED TO LENDER’S, RFC'S OR ORIGINAL LENDER'S ACTIONS, OMISSIONS, STATEMENT, REQUESTS OR DEMANDS OCCURRING ON OR PRIOR TO THE EFFECTIVE DATE IN ADMINISTERING, ENFORCING, MONITORING, COLLECTION OR ATTEMPTING TO COLLECT THE INDEBTEDNESS OF BORROWER TO LENDER, RFC, OR ORIGINAL LENDER, WHICH INDEBTEDNESS
        WAS EVIDENCED BY THE LOAN AGREEMENT AND THE LOAN DOCUMENTS.

        8.16     Agreement Binding on Each of the Borrower Parties and Lender. Each of the Borrower Parties and Lender agree that this Amendment will be binding on the Borrower Parties and Lender and their respective successors and assigns; provided, no obligation or right hereunder shall be assignable by
        Borrower (whether voluntarily, involuntarily or by operation of law) without the prior written consent of Lender.

         

        REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

        SIGNATURE PAGES TO FOLLOW.

        Page 15

        

        

        

        EXECUTED by the parties hereto on the dates set forth in the acknowledgments below, to be effective as of the Effective Date.

        	 	BORROWER:
	 	 
	 	BLUEGREEN SOUTHWEST ONE, L.P.,
	 	a Delaware limited partnership
	 	 
	 	BLUEGREEN COMMUNITIES OF TEXAS, L.P.,
	 	a Delaware limited partnership
	 	 
	 	By:	BLUEGREEN SOUTHWEST LAND, INC.,
	 	 	a Delaware corporation, its general partner
	 	 	 	 
	 	By:	/s/ Anthony M. Puleo	 
	 	 	Anthony M. Puleo	 
	 	 	Vice President	 
	 	 	 	 
	 	
                    BLUEGREEN CORPORATION OF THE ROCKIES,

                    a Delaware corporation 

                     

                    BLUEGREEN GOLF CLUBS, INC.

                    a Delaware corporation, 

                     

                    BLUEGREEN PROPERTIES OF VIRGINIA, INC.

                    a Delaware corporation

                     

                    CATAWBA FALLS, LLC

                    a North Carolina limited liability company

                     

                    BLUEGREEN COMMUNITIES OF TEXAS, L.P.

                    a Delaware limited partnership

                     

                    BLUEGREEN COMMUNITIES OF GEORGIA, LLC

                    a Georgia limited liability company

                
	 	 	 	 
	 	By:	/s/ Anthony M. Puleo	 
	 	 	Anthony M. Puleo	 
	 	 	Vice President	 
	 	 	 	 

         

        
            

            FIFTH AMENDMENT TO LOAN AGREEMENT - SIGNATURE PAGE

        

         

         

        

        

        

         

        	 	
                    GUARANTOR:

                     

                    BLUEGREEN CORPORATION,

                    a Massachusetts corporation

                
	 	 
	 	By:	/s/ Anthony M. Puleo	 
	 	 	Anthony M. Puleo	 
	 	 	Vice President	 
	 	 	 	 

         

         

        
            

            FIFTH AMENDMENT TO LOAN AGREEMENT - SIGNATURE PAGE

        

         

        

        

        

        	 	
                    LENDER:

                     

                    H4BG, LP, a Texas limited partnership

                
	 	 
	 	By:	H4BG PROJECT GP, LLC,
	 	 	a Texas limited liability company,
	 	 	its general partner	 
	 	 	 	 
	 	By:	/s/ Fred Balda	 
	 	 	Fred Balda	 
	 	 	President	 

         

        

        
            

            FIFTH AMENDMENT TO LOAN AGREEMENT - SIGNATURE PAGE

        

         

        

        

        

        SCHEDULE 1-A

        ADDENDUM TO $50,000,000 REVOLVING PROMISSORY NOTE

        ADDENDUM TO REVOLVING PROMISSORY NOTE

        THIS ADDENDUM TO REVOLVING PROMISSORY NOTE (this “Addendum”) is to be attached to that certain Revolving Promissory Note dated September 25, 2002, in the principal amount of Fifty Million Dollars ($50,000,000) (as amended by Addenda to Revolving Promissory Note, dated as of October 3, 2003, March 1, 2006, February
        16, 2007, and July 1, 2009) executed initially or by Addenda by (i) BLUEGREEN CORPORATION OF THE ROCKIES, a Delaware corporation, (ii) BLUEGREEN GOLF CLUBS, INC., a Delaware corporation, (iii) BLUEGREEN PROPERTIES OF VIRGINIA, INC., a Delaware corporation, (iv) BLUEGREEN SOUTHWEST ONE,
        L.P., a Delaware limited partnership, (v) CATAWBA FALLS, LLC, a North Carolina limited liability company, (vi) BLUEGREEN COMMUNITIES OF TEXAS, L.P., a Delaware limited partnership, and (vii) BLUEGREEN COMMUNITIES OF GEORGIA, LLC, a Georgia limited liability company collectively, as maker for the benefit of
        H4BG, LP, a Texas limited partnership (“Lender”) (as assignee of RFC CONSTRUCTION FUNDING, LLC, a Delaware limited liability company, successor in interest to and assignee of RESIDENTIAL FUNDING COMPANY, LLC, a Delaware limited liability company, formerly known as
        Residential Funding Corporation, a Delaware corporation), as holder (as amended or otherwise modified from time to time, the “Note”). Unless otherwise indicated, all capitalized terms not otherwise defined herein shall have the meaning given to such term in the Note.

        From and after the Fourth Amendment Effective Date (as defined in the Loan Agreement), the “Base Rate” under the Note shall be determined as follows: (i) as of the Fourth Amendment Effective Date, the Base Rate shall be the Prime Rate plus 2.0%, but in no event less than 10%; (ii) from and after the date on which
        the Loan Amount (as defined in the Loan Agreement) has been reduced after the Fourth Amendment Effective Date by a total of $25,000,000.00 (inclusive of the Fourth Amendment Principal Paydown, as such term is defined in the Loan Agreement), the Base Rate shall be the Prime Rate plus 2.0%, but no less than 8%; and (iii) from and after the date on which the Loan Amount has been reduced to a total of $20,000,000.00 or less (inclusive of the Fourth Amendment Principal Paydown), the Base
        Rate shall be the Prime Rate plus 2.0%, but no less than 6%. The parties hereby agree that the substitute source for determining the prime lending rate, in place of Bank One, shall be JPMorgan Chase, N.A.

        From and after the Fourth Amendment Effective Date, the “Default Rate” under the Note shall be the Base Rate plus 5.0%.

        Effective Date: April 16, 2010.

        [SIGNATURE PAGES OF BORROWER PARTIES TO BE INSERTED]

         

        

        

        

        SCHEDULE 1-B

        ADDENDUM TO $25,000,000 REVOLVING PROMISSORY NOTE

        ADDENDUM TO REVOLVING PROMISSORY NOTE

        THIS ADDENDUM TO REVOLVING PROMISSORY NOTE (this “Addendum”) is to be attached to that certain Revolving Promissory Note dated May 10, 2005, in the principal amount of Twenty Five Million Dollars ($25,000,000) (as amended by Addenda to Revolving Promissory Note, dated as of March 1, 2006, February 16, 2007, and July
        1, 2009) executed initially or by Addenda by (i) BLUEGREEN CORPORATION OF THE ROCKIES, a Delaware corporation, (ii) BLUEGREEN GOLF CLUBS, INC., a Delaware corporation, (iii) BLUEGREEN PROPERTIES OF VIRGINIA, INC., a Delaware corporation, (iv) BLUEGREEN SOUTHWEST ONE, L.P., a Delaware
        limited partnership, (v) CATAWBA FALLS, LLC, a North Carolina limited liability company, (vi) BLUEGREEN COMMUNITIES OF TEXAS, L.P., a Delaware limited partnership, and (vii) BLUEGREEN COMMUNITIES OF GEORGIA, LLC, a Georgia limited liability company collectively, as maker for the benefit of H4BG,
        LP, a Texas limited partnership (“Lender”) (as assignee of RFC CONSTRUCTION FUNDING, LLC, a Delaware limited liability company, successor in interest to and assignee of RESIDENTIAL FUNDING COMPANY, LLC, a Delaware limited liability company, formerly known as Residential Funding Corporation, a
        Delaware corporation), as holder (as amended or otherwise modified from time to time, the “Note”). Unless otherwise indicated, all capitalized terms not otherwise defined herein shall have the meaning given to such term in the Note.

        From and after the Fourth Amendment Effective Date (as defined in the Loan Agreement), the “Base Rate” under the Note shall be determined as follows: (i) as of the Fourth Amendment Effective Date, the Base Rate shall be the Prime Rate plus 2.0%, but in no event less than 10%; (ii) from and after the date on which
        the Loan Amount (as defined in the Loan Agreement) has been reduced after the Fourth Amendment Effective Date by a total of $25,000,000.00 (inclusive of the Fourth Amendment Principal Paydown, as such term is defined in the Loan Agreement), the Base Rate shall be the Prime Rate plus 2.0%, but no less than 8%; and (iii) from and after the date on which the Loan Amount has been reduced to a total of $20,000,000.00 or less (inclusive of the Fourth Amendment Principal Paydown), the Base
        Rate shall be the Prime Rate plus 2.0%, but no less than 6%. The parties hereby agree that the substitute source for determining the prime lending rate, in place of Bank One, shall be JPMorgan Chase, N.A.

        From and after the Fourth Amendment Effective Date, the “Default Rate” under the Note shall be the Base Rate plus 5.0%.

        Effective Date: April 16, 2010.

        [SIGNATURE PAGES OF BORROWER PARTIES TO BE INSERTED]

         

        

        

        

        SCHEDULE 2

        EXHIBIT H

        SCHEDULE A LOAN VALUES*

        *Note: The Schedule will be updated periodically to (a) remove lots that have been sold and released from collateral and (b) add new platted Lots.

         

        SEE ATTACHED TABLE.

         

        

        

        

        SCHEDULE 3

        LITIGATION

        Bluegreen Resorts

         

        Pennsylvania Attorney General Lawsuit

         

        On October 28, 2008, in Cause No. 479 M.D. 2008, styled Commonwealth of Pennsylvania Acting by Attorney General Thomas W. Corbett, Jr. v. Bluegreen Corporation, Bluegreen Resorts, Bluegreen Vacations Unlimited, Inc. and Great Vacation Destinations, Inc. , in the Commonwealth Court of Pennsylvania, the Commonwealth of Pennsylvania acting through its Attorney General filed a lawsuit against Bluegreen
        Corporation, Bluegreen Resorts, Bluegreen Vacations Unlimited, Inc. and Great Vacation Destinations, Inc. (a wholly owned subsidiary of Bluegreen Corporation) alleging violations of Pennsylvania’s Unfair Trade Practices and Consumer Protection Laws. The lawsuit seeks civil penalties against us and restitution on behalf of Pennsylvania consumers who may have suffered losses as a result of the alleged unlawful sales and marketing methods and practices. The lawsuit does not seek to
        permanently restrain us or any of our affiliates from doing business in the Commonwealth of Pennsylvania. The parties have reached settlement on this matter and have signed a consent petition and forwarded it to the Court for approval and filing with the appropriate court offices. 

         

        Destin, Florida Deposit Dispute Lawsuit

         

        In Cause No. 2006-Ca-3374, styled Joseph M. Scheyd, Jr., P.A. vs. Bluegreen Vacations Unlimited, Inc.,; Hubert A. Laird; and MSB of Destin, Inc., in the Circuit Court of the First Judicial Circuit in and for Okaloosa County, Florida, the Plaintiff as escrow agent brought an interpleader action seeking a determination as to whether we, as purchaser, or
        Hubert A. Laird and MSB of Destin, Inc. as seller, were entitled to the $1.4 million escrow deposit being maintained with the escrow agent pursuant to a purchase and sale contract for real property located in Destin, Florida. Both we and the seller have brought cross-claims for breach of the underlying purchase and sale contract. The seller alleges we failed to perform under the terms of the purchase and sale contract and alleges fraud. We maintain that our decision not to close on the
        purchase of the subject real property was in accordance with the terms of the purchase and sale contract and therefore we are entitled to a return of the full escrow deposit.

         

        Bluegreen Communities

         

        Mountain Lakes Mineral Rights

         

        Bluegreen Southwest One, L.P., (Southwest”), a subsidiary of Bluegreen Corporation, is the developer of the Mountain Lakes subdivision in Texas. In Cause No. 28006, styled Betty Yvon Lesley et a1 v. Bluff Dale Development Corporation, Bluegreen Southwest One. L.P. et al., in the 266th Judicial District Court, Erath County, Texas, the plaintiffs
        filed a declaratory judgment action against Southwest seeking to develop their reserved mineral interests in, on and under the Mountain Lakes subdivision. The plaintiffs’ claims are based on property law, oil and gas law, contract and tort theories. The property owners association and some of the individual landowners have filed cross actions against Bluegreen, Southwest and individual directors of the property owners association related to the mineral rights and certain amenities
        in the subdivision as described below. On January 17, 2007, the court ruled that the restrictions placed on the development that prohibited oil and gas production and development were invalid and not enforceable as a matter of law, that such restrictions did not prohibit the development of 

         

        

        

        

        the plaintiffs’ prior reserved mineral interests and that Southwest breached its duty to lease the minerals to third parties for development. The court further ruled that Southwest was the sole holder of the right to lease the minerals to third parties. The order granting the plaintiffs’ motion was severed into a new cause styled Cause No. 28769 Betty Yvon Lesley et a1
        v. Bluff Dale Development Corporation, Bluegreen Southwest One. L.P. et al. in the 266th Judicial District Court, Erath County, Texas. Southwest appealed the trial court’s ruling. On January 22, 2009, in Bluegreen Southwest One, L.P. et al. v. Betty Yvon Lesley et al., in the 11th Court of Appeals, Eastland, Texas, the Appellate Court reversed the trial court’s decision and ruled in
        Southwest’s favor and determined that all executive rights were owned by Southwest and then transferred to the individual property owners in connection with the sales of land. All property owner claims were decided in favor of Southwest. It was also decided that Southwest did not breach a fiduciary duty to the plaintiffs as an executive rights holder. As a result of this decision, no damages or attorneys’ fees are owed to the plaintiffs. On May 14, 2009, the plaintiffs filed
        an appeal with the Texas Supreme Court asking the Court to reverse the Appellate Court’s decision in favor of Bluegreen. No information is available as to when the Texas Supreme Court will render a decision as to whether or not it will take the appeal.

         

        Marshall, et al. Lawsuit regarding Community Amenities

         

        On September 14, 2009, in Cause No. 09-09-08763-CV, styled William Marshall and Patricia Marshall, et al. v. Bluegreen Southwest One, L.P., Bluegreen Southwest Land, Inc., Bluegreen Corporation, Stephen Davis, and Bluegreen Communities of Texas, L.P. , Plaintiffs brought suit against us alleging fraud, negligent misrepresentation, breach of contract, and negligence with regards to the Ridgelake Shores
        subdivision we developed in Montgomery County, Texas. More specifically, the Plaintiffs allege misrepresentation concerning the usability of the lakes within the community for fishing and sporting and the general level of quality at which the community would be developed and thereafter maintained. The lawsuit seeks material damages and the estimated cost to remediate the lake is $500,000. We intend to vigorously defend the lawsuit.

         

        Schwarz, et al. Lawsuit regarding Community Amenities

         

        On September 18, 2008, in Cause No. 2008-5U-CV-1358-WI, styled Paul A. Schwarz and Barbara S. Schwarz v. Bluegreen Communities of Georgia, LLC and Bluegreen Corporation, Plaintiffs brought suit against us alleging fraud and misrepresentation with regards to the construction of a marina at the Sanctuary Cove subdivision located in Camden County, Georgia.
        Plaintiff subsequently withdrew the fraud and misrepresentation counts and replaced them with a count alleging violation of racketeering laws, including mail fraud and wire fraud. On January 25, 2010, Plaintiffs filed a second complaint seeking approval to proceed with the lawsuit as a class action representing more than 100 persons who were harmed by the alleged racketeering activities in a similar manner as Plaintiffs. No decision has yet been made by the Court as to whether they
        certify a class. We have successfully removed this case from Georgia State Court to Federal District Court. The style of this lawsuit is now Cause No. CV210-035, Paul A. Schwarz and Barbara S. Schwarz, Individually and on behalf of a class of others similarly situated; In the United States District Court For the Southern District of Georgia, Brunswick Division. We deny the allegations and intend to vigorously defend the
        lawsuit.

         

        In the ordinary course of our business, we become subject to claims or proceedings from time to time relating to the purchase, sale or financing of vacation ownership interests and real estate. Additionally, from time to time, we become involved in disputes with existing and former employees, vendors, taxing jurisdictions and various other parties.ex10-1.htm

Exhibit 10.1

GREENMAN TECHNOLOGIES, INC.

2005 STOCK OPTION PLAN

(As Amended and Approved by Stockholders on March 31, 2010)

1.           Purpose. This 2005 Stock Option Plan (the "Plan") is intended to provide incentives: (a) to the officers and other employees of GreenMan Technologies, Inc., a Delaware corporation (the "Company"), its parent (if any) and any present or future subsidiaries of the Company (collectively, "Related Corporations") by providing them with opportunities to purchase stock in the Company pursuant to options granted hereunder which qualify as "incentive stock options" under Section 422(b) of the Internal Revenue Code of 1986, as amended (the "Code") ("ISO" or "ISOs"); and (b) to directors, officers, employees and consultants of the Company and Related Corporations by providing them with opportunities to purchase stock in the Company pursuant to options granted hereunder which do not qualify as ISOs ("Non-Qualified Option" or "Non-Qualified Options"). As used herein, the terms "parent" and "subsidiary" mean "parent corporation" and "subsidiary corporation", respectively, as those terms are defined in Section 424 of the Code.

 

2.          Administration of the Plan

 

A.           Board or Committee Administration. The Plan shall be administered by the Board of Directors of the Company (the "Board") or by a Committee appointed by the Board pursuant to Section 2B of the Plan. Hereinafter, all references in this Plan to the "Committee" shall mean the Board if no Committee has been appointed. Subject to ratification of the grant or authorization of each Option by the Board (if so required by applicable state law), and subject to the terms of the Plan, the Committee shall have the authority to (i) determine the employees of the Company and Related Corporations (from among the class of employees eligible under paragraph 3 to receive ISOs) to whom ISOs may be granted, and to determine (from among the class of individuals and entities eligible under paragraph 3 to receive Non-Qualified Options) to whom Non-Qualified Options may be granted; (ii) determine the time or times at which Options may be granted; (iii) determine the option price of shares subject to each Option, which price shall not be less than the minimum price specified in paragraph 6; (iv) determine, with respect to each Option granted under the Plan, whether such Option shall be an ISO or a Non-Qualified Option; (v) determine (subject to paragraph 7) the time or times when each Option shall become exercisable and the duration of the exercise period; (vi) determine whether restrictions such as repurchase options are to be imposed on shares subject to Options and the nature of such restrictions, if any, and (vii) interpret the Plan and prescribe and rescind rules and regulations relating to it. If the Committee determines to issue a Non-Qualified Option, it shall take whatever actions it deems necessary, under Section 422 of the Code and the regulations promulgated thereunder, to ensure that such Option is not treated as an ISO. If the Committee determines to issue an ISO, it shall take whatever actions it deems necessary, under Section 422 of the Code and the regulations promulgated thereunder, to ensure that such Option is not treated as a Non-Qualified Option. The interpretation and construction by the Committee of any provisions of the Plan or of any Option granted under it shall be final unless otherwise determined by the Board. The Committee may from time to time adopt such rules and regulations for carrying out the Plan as it may deem best. No member of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Option granted under it.

 

  

  

  

 

B.           The Board may delegate administration of the Plan to a Committee composed of not fewer than two (2) Directors (the "Committee"), each of the members of which Committee shall be (i) a Non-Employee Director (as such term is defined in Rule 16b-3(b)(3)(i)) and (ii) an “outside director” (within the meaning of such term Section 1562(m) of the Code. If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted form time to time by the Board.

 

C.           Any requirement that each member of the Committee be a "Non-Employee Director" shall not apply (i) after the date the Company ceases to have any class of equity security registered under Section 12 of the Securities Exchange Act of 1934, as amended, or (ii) if the Board expressly declares that such requirement shall not apply.

 

3.           Eligible Employees and Others.  ISOs may be granted to any employee of the Company or any Related Corporation. Those officers and directors of the Company who are not employees may not be granted ISOs under the Plan. Non-Qualified Options may he granted to any employee, officer or director (including Non-Employee Directors) or consultant of the Company or any Related Corporation. The Committee may take into consideration a recipient's individual circumstances in determining whether to grant an ISO or a Non-Qualified Option. Granting of any Options to any individual or entity shall neither entitle that individual or entity to, nor disqualify him from, participation in any other grants of Options.

 

4.           Stock. The stock subject to Options shall be authorized but unissued shares of Common Stock of the Company, par value $.01 per share (the "Common Stock"), or shares of Common Stock reacquired by the Company in any manner. The aggregate number of shares which may be issued pursuant to the Plan is 6,000,000, subject to adjustment as provided in paragraph 13. Any such shares may be issued as ISOs or Non-Qualified Options so long as the number of shares so issued does not exceed such number, as adjusted. If any Option granted under the Plan shall expire or terminate for any reason without having been exercised in full or shall cease for any reason to be exercisable in whole or in part, the unpurchased shares subject to such Options shall again be available for grants of Option under the Plan. The number of shares of Common Stock in respect of which an optionee may receive Options under the Plan in any year shall not exceed 500,000, subject to adjustment as provided in paragraph 13.

 

5.           Granting of Options. Options may be granted under the Plan at any time after March 18, 2005 and prior to March 18, 2015. The date of grant of Options under the Plan will be the date specified by the Committee at the time it grants the Option; provided, however, that such date shall not be prior to the date on which the Committee acts to approve the grant. The Committee shall have the right, with the consent of the optionee, to convert an ISO granted under the Plan to a Non-Qualified Option pursuant to paragraph 16.

 

6.           Minimum Option Price; ISO Limitation

 

A.           Price for Non-Qualified Options. The exercise price per share specified in the agreement relating to each Non-Qualified Option granted under the Plan shall in no event be less than the minimum legal consideration required therefor under the laws of the State of Delaware or the laws of any jurisdiction in which the Company or its successors in interest may be organized.

 

  

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B.           Price for ISOs. The exercise price per share specified in the agreement relating to each ISO granted under the Plan shall not be less than the fair market value per share of Common Stock on the date of such grant. In the case of an ISO to be granted to an employee owning stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Related Corporation, the price per share specified in the agreement relating to such ISO shall not be less than one hundred ten percent (110%) of the fair market value per share of Common Stock on the date of grant.

 

C.           $100,000 Annual Limitation on ISOs. Each eligible employee may be granted ISOs only to the extent that, in the aggregate under this Plan and all incentive stock option plans of the Company and any Related Corporation, the value of Common Stock (determined at the time ISOs were granted) which is subject to ISOs that become exercisable for the first time by such employee during any calendar year does not exceed $100,000. Any options granted to an employee in excess of such amount will be granted as Non-Qualified Options.

 

D.           Determination of Fair Value Market. If, at the time an Option is granted under the Plan, the Company's Common Stock is publicly traded, "fair market value" shall be determined as of the last business day for which the prices or quotes discussed in this sentence are available prior to the date such Option is granted and shall mean (i) the average (on that date) of the high and low prices of the Common Stock on the principal national securities exchange on which the Common Stock is traded, if the Common Stock is then traded on a national securities exchange; or (ii) the last reported sale price (on that date) of the Common Stock on the Nasdaq National Market (or successor trading system), if the Common Stock is not then traded on a national securities exchange; or (iii) the closing bid price (or average of bid prices) last quoted (on that date) by an established quotation service for over-the-counter securities, if the Common Stock is not reported on the NASDAQ National Market (or successor trading system). However, if the Common Stock is not publicly traded at the time an Option is granted under the Plan, "fair market value" shall be deemed to be the fair value of the Common Stock as determined by the Committee after taking into consideration all factors which it deems appropriate, including, without limitation, recent sale and offer prices of the Common Stock in private transactions negotiated at arm's length.

 

7.           Option Duration. Subject to earlier termination as provided in paragraphs 9 and 10, each Option shall expire on the date specified by the Committee, but not more than (i) ten years and one day from the date of grant in the case of Non-Qualified Options, (ii) ten years from the date of grant in the case of ISOs generally, and (iii) five years from the date of grant in the case of ISOs granted to an employee owning stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Related Corporation. Subject to earlier termination as provided in paragraphs 9 and 10, the term of each ISO shall be the term set forth in the original instrument granting such ISO, except with respect to any part of such ISO that is converted into a Non-Qualified Option pursuant to paragraph 16.

 

8.           Exercise of Option. Subject to the provisions of paragraphs 9 through 12, each Option granted under the Plan shall be exercisable as follows:

 

A.           Vesting. The Option shall either be fully exercisable on the date of grant or shall become exercisable thereafter in such installments as the Committee may specify.

 

  

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B.          Full Vesting of Installments. Once an installment becomes exercisable it shall remain exercisable until expiration or termination of the Option, unless otherwise specified by the Committee.

 

C.           Partial Exercise. Each Option or installment may be exercised at any time or from time to time, in whole or in part, for up to the total number of shares with respect to which it is then exercisable.

 

D.           Acceleration of Vesting. The Committee shall have the right to accelerate the date of exercise of any installment of any Option; provided that the Committee shall not, without the consent of an optionee, accelerate the exercise date of any installment of any Option granted to any employee as an ISO (and not previously converted into a Non-Qualified Option pursuant to paragraph 16) if such acceleration would violate the annual vesting limitation contained in Section 422(d) of the Code, as described in paragraph 6(C).

 

E.           Extension of Exercise Period. Notwithstanding any provision herein to the contrary, the Committee may, in its discretion, extend the exercise period with respect to any Non-Qualified Option.

 

9.           Termination of Employment. If an ISO optionee ceases to be employed by the Company and all Related Corporations other than by reason of death or disability as defined in paragraph 10, no further installments of his ISOs shall become exercisable, and his ISOs shall terminate after the passage of ninety (90) days from the date of termination of his employment (or at such earlier date as may be specified in the optionee’s option agreement), but in no event later than on their specified expiration dates, except to the extent that such ISOs (or unexercised installments thereof) have been converted into Non-Qualified Options pursuant to paragraph 16. Employment shall be considered as continuing uninterrupted during any bona fide leave of absence (such as those attributable to illness, military obligations or governmental service) provided that the period of such leave does not exceed ninety (90) days or, if longer, any period during which such optionee's right to reemployment is guaranteed by statute. A bona fide leave of absence with the written approval of the Committee shall not be considered an interruption of employment under the Plan, provided that such written approval contractually obligates the Company or any Related Corporation to continue the employment of the optionee after the approved period of absence. ISOs granted under the Plan shall not be affected by any change of employment within or among the Company and Related Corporations, so long as the optionee continues to be an employee of the Company or any Related Corporation. Nothing in the Plan shall be deemed to give any grantee of any Option the right to be retained in employment or other service by the Company or any Related Corporation for any period of time.

 

10.           Death; Disability

 

A.           Death. If an ISO optionee ceases to be employed by the Company and all Related Corporations by reason of his death, any ISO of his may be exercised, to the extent of the number of shares with respect to which he could have exercised it on the date of his death, by his estate, personal representative or beneficiary who has acquired the ISO by will or by the laws of descent and distribution, at any time prior to the earlier of the specified expiration date of the ISO or 180 days from the date of the optionee's death.

 

  

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B.           Disability. If an ISO optionee ceases to be employed by the Company and all Related Corporations by reason of his disability, he shall have the right to exercise any ISO held by him on the date of termination of employment, to the extent of the number of shares with respect to which he could have exercised it on that date, at any time prior to the earlier of the specified expiration date of the ISO or 180 days from the date of the termination of the optionee's employment. For the purposes of the Plan, the term "disability" shall mean "permanent and total disability" as defined in Section 22(e)(3) of the Code or successor statute.

 

11.           Assignability. No Option shall be assignable or transferable by the optionee except by will or by the laws of descent and distribution or, with respect to Non-Qualified Options only, pursuant to a qualified domestic relations order as defined in the Code or Title I of the Employee Retirement Income Security Act, or the rules thereunder. During the lifetime of the optionee each ISO shall be exercisable only by him.  Any assignment or transfer, or attempted assignment or transfer, of an Option in violation of this Section 11 shall be void.

 

12.           Terms and Conditions of Options. Options shall be evidenced by instruments (which need not be identical) in such forms as the Committee may from time to time approve. Such instruments shall conform to the terms and conditions set forth in paragraphs 6 through 11 hereof and may contain such other provisions as the Committee deems advisable which are not inconsistent with the Plan, including restrictions applicable to shares of Common Stock issuable upon exercise of Options. In granting any Non-Qualified Option, the Committee may specify that such Non-Qualified option shall be subject to the restrictions set forth herein with respect to ISOs, or to such other termination and cancellation provisions as the Committee may determine. The Committee may from time to time confer authority and responsibility on one or more of its own members and/or one or more officers of the Company to execute and deliver such instruments. The proper officers of the Company are authorized and directed to take any and all action necessary or advisable from time to time to carry out the terms of such instruments.

 

13.           Adjustments. Upon the occurrence of any of the following events, an optionee's rights with respect to Options granted to him hereunder shall be adjusted as hereinafter provided, unless otherwise specifically provided in the written agreement between the optionee and the Company relating to such Option:

 

A.           Stock Dividends and Stock Splits. If the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock deliverable upon the exercise of Options shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be made in the purchase price per share to reflect such subdivision, combination or stock dividend.

 

B.           Consolidation or Mergers. If the Company is to be consolidated with or acquired by another entity in a merger, sale of all or substantially all of the Company's assets or otherwise (an "Acquisition"), the Committee or the board of directors of any entity assuming the obligations of the Company hereunder (the "Successor Board"), shall, as to outstanding Options, either (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the shares then subject to such Options the consideration payable with respect to the outstanding shares of Common Stock in connection with the Acquisition; or (ii) make appropriate provisions for the continuation of such Options by substituting on an equitable basis for the shares then subject to such Options any equity securities of the successor corporation; or (iii) upon written notice to the optionees, provide that all Options must be exercised, to the extent then exercisable, within a specified number of days of the date of such notice, at the end of 

 

  

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which period the Options shall terminate; or (iv) terminate all Options in exchange for a cash payment equal to the excess of the fair market value of the shares subject to such Options (to the extent then exercisable) over the exercise price thereof; or (v) accelerate the date of exercise of such Options or of any installment of such Options; or (vi) terminate all Options in exchange for the right to participate in any stock option or other employee benefit plan of any successor corporation.

 

C.           Recapitalization or Reorganization. In the event of a recapitalization or reorganization of the Company (other than a transaction described in subparagraph B above) pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common stock, an optionee upon exercising an Option shall be entitled to receive for the purchase price paid upon such exercise the securities he would have received if he had exercised his Option prior to such recapitalization or reorganization.

 

D.           Modifications of ISOs. Notwithstanding the foregoing, any adjustments made pursuant to subparagraphs A, B or C with respect to ISOs shall be made only after the Committee, after consulting with counsel for the Company, determines whether such adjustments would constitute a "modification" of such ISOs (as that term is defined in Section 424 of the Code) or would cause any adverse tax consequences for the holders of such ISOs. If the Committee determines that such adjustments made with respect to ISOs would constitute a modification of such ISOs, it may refrain from making such adjustments.

 

E.           Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, each Option will terminate immediately prior to the consummation of such proposed action or at such other time and subject to such other conditions as shall be determined by the Committee.

 

F.           Issuances of Securities. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities- convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Options. No adjustments shall be made for dividends paid in cash or in property other than securities of the Company.

 

G.           Fractional Shares. No fractional shares shall be issued under the Plan and the optionee shall receive from the Company cash in lieu of such fractional shares.

 

H.           Adjustments. Upon the happening of any of the events described in subparagraphs A, B or C above, the class and aggregate number of shares set forth in paragraph 4 hereof that are subject to Options which previously have been or subsequently may be granted under the Plan, and the number of shares of Common Stock in respect of which an optionee may receive Options under the Plan in any year, shall also be appropriately adjusted to reflect the events described in such subparagraphs. The Committee or the Successor Board shall determine the specific adjustments to be made under this paragraph 13 and, subject to paragraph 2, its determination shall be conclusive.

 

If any person or entity owning restricted Common Stock obtained by exercise of an Option made hereunder receives shares or securities or cash in connection with a corporate transaction described in subparagraphs A, B or C above as a result of owning such restricted Common Stock, such shares or securities or cash shall be subject to all of the conditions and restrictions applicable to the restricted Common Stock with respect to which such shares or securities or cash were issued, unless otherwise determined by the Committee or the Successor Board.

 

  

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14.           Means of Exercising Options. An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company at its principal office address. Such notice shall identify the Option being exercised and specify the number of shares as to which such Option is being exercised, accompanied by full payment of the purchase price therefor either (a) in United States dollars in cash or by check, or (b) at the discretion of the Committee, through delivery of shares of Common Stock having a fair market value equal as of the date of the exercise to the cash exercise price of the Option, (c) at the discretion of the Committee and consistent with applicable law, through the delivery of an assignment to the Company of a sufficient amount of the proceeds from the sale of the Common Stock acquired upon exercise of the Option and an authorization to the broker, or selling agent to pay that amount to the Company, which sale shall be at the participant's direction at the time of exercise, or (d) at the discretion of the Committee, by any combination of (a), (b) and (c) above. If the Committee exercises its discretion to permit payment of the exercise price of an ISO by means of the methods set forth in clauses (b), (c) or (d) of the preceding sentence, such discretion shall be exercised in writing at the time of the grant of the ISO in question. The holder of an Option shall not have the rights of a shareholder with respect to the shares covered by his Option until the date of issuance of a stock certificate to him for such shares. Except as expressly provided above in paragraph 13 with respect to changes in capitalization and stock dividends, no adjustment shall be made for dividends or similar rights for which the record date is before the date such stock certificate is issued.

 

15.           Terms and Amendment of Plan. This Plan was adopted by the Board on March 18, 2005 subject to approval of the Plan by the stockholders of the Company at the next Meeting of Stockholders or, in lieu thereof, by written consent. If the approval of stockholders is not obtained prior to March 18, 2006, any grants of ISOs under the Plan made prior to that date will be rescinded. The Plan shall expire at the end of the day on March 18, 2015 (except as to Options outstanding on that date).  Subject to the provisions of paragraph 5 above, Options may be granted under the Plan prior to the date of stockholder approval of the Plan. The Board may terminate or amend the Plan in any respect at any time, except that, without the approval of the stockholders obtained within 12 months before or after the Board adopts a resolution authorizing any of the following actions: (a) the total number of shares that may be issued under the Plan may not be materially increased (except by adjustment pursuant to paragraph 13); (b) the provisions of paragraph 3 regarding eligibility for grants of ISOs may not be modified; (c) the provisions of paragraph 6(B) regarding the exercise price at which shares may be offered pursuant to ISOs may not be modified (except by adjustment pursuant to paragraph 13); and (d) the expiration date of the Plan may not be extended. Except as otherwise provided in this paragraph 15, in no event may action of the Board or stockholders alter or impair she rights of a grantee, without his consent, under any Option previously granted to him.

 

  

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16.           Conversion of ISOs into Non-Qualified Options; Termination of ISOs. The Committee, at the written request of any optionee, may in its discretion take such actions as may be necessary to convert such optionee's ISOs (or any installments or portions of installments thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior to the expiration of such ISOs, regardless of whether the optionee is an employee of the Company or a Related Corporation at the time of such conversion. Such actions may include, but not be limited to, extending the exercise period or reducing the exercise price of the appropriate installments of such ISOs. At the time of such conversion, the Committee (with the consent of the optionee) may impose such conditions on the exercise of the resulting Non-Qualified Options as the Committee in its discretion may determine, provided that such conditions shall not be inconsistent with this Plan. Nothing in the Plan shall be deemed to give any optionee the right to have such optionee's ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Committee takes appropriate action. The Committee, with the consent of the optionee, may also terminate any portion of any ISO that has not been exercised at the time of such termination.

 

17.           Application of Funds. The proceeds received by the Company from the sale of shares pursuant to Options granted under the Plan shall be used for general corporate purposes.

 

18.           Governmental Regulation. The Company's obligation to sell and deliver shares of the Common Stock under this Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance or sale of such shares.

 

19.           Withholding of Additional Income Taxes. Upon the exercise of a Non-Qualified Option or the making of a Disqualifying Disposition (as defined in paragraph 20), the Company, in accordance with Section 3402(a) of the Code, may require the optionee to remit to the Company additional withholding taxes in respect of the amount that is considered compensation includible in such person's gross income. The Committee in its discretion may condition the exercise of an option on the grantee's remission of such additional withholding taxes.

 

20.           Notice to Company of Disqualifying Disposition. Each employee who receives an ISO must agree to notify the Company in writing immediately after the employee makes a Disqualifying Disposition of any Common Stock acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is any disposition (including any sale) of such Common Stock before the later of (a) two years after the date the employee was granted the ISO, or (b) one year after the date the employee acquired Common Stock by exercising the ISO. If the employee has died before such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter. 

 

21.           Governing Law; Construction. The validity and construction of the Plan and the instruments evidencing Options shall be governed by the laws of the State of Delaware, or the laws of any jurisdiction in which the Company or its successors in interest may be organized. In construing this Plan, the singular shall include the plural and the masculine gender shall include the feminine and neuter, unless the context otherwise requires.

 

  

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