Document:

Exhibit 10.1, form 8-K, 05/16/03

Execution Copy

 

REINSTATEMENT OF AGREEMENT AND PLAN OF MERGER

This Reinstatement of Agreement and Plan of Merger (the "Reinstatement
Agreement") is dated as of May 12 , 2003, by and among Capital Growth Partners LLC, a
Utah limited liability company (the "Purchaser"), United Park City Mines
Company, a Delaware corporation (together with its Subsidiaries, the "Company"),
Loeb Investors Co. XL, a New York partnership ("Seller" or "Loeb"),
and CGP Acquisition, Inc. a Delaware corporation and a wholly owned subsidiary of the
Purchaser ("Merger Subsidiary").

 

Recitals

A. The Purchaser, the Company, Merger Subsidiary, Loeb and certain other stockholders
of the Company were parties to the Agreement and Plan of Merger dated August 26, 2002 (the
"Merger Agreement"). 

B. The Merger Agreement was terminated pursuant to a termination notice dated October
2, 2002 (the "Termination Notice") delivered to the Purchaser by Loeb, as
Sellers’ Representative.

C. Each of the parties to this Reinstatement Agreement desires to reinstate the Merger
Agreement on the same terms and conditions as set forth therein, as amended by this
Reinstatement Agreement.

 

Agreement

In consideration of the foregoing and the respective representations, warranties,
covenants and agreements set forth herein, the parties hereto agree as follows.

1. Merger Agreement. The Merger Agreement is hereby reinstated by each of the
parties hereto on the same terms and conditions as set forth therein, as amended by this
Reinstatement Agreement, and the Termination Notice is hereby withdrawn and of no further
force and effect. All capitalized terms not defined herein shall have the meaning ascribed
to them in the Merger Agreement. For the avoidance of doubt, the term "Seller"
or "Sellers" shall mean Loeb.

2. Reinstatement Deposit. Concurrently with the execution and delivery of this
Reinstatement Agreement, the Purchaser shall deliver to Loeb, as the Seller, the amount of
$300,000 in cash, $100,000 of which will be provided to the Purchaser by an entity
affiliated with East West Partners (collectively, the "Reinstatement Payment").
The Reinstatement Payment is nonrefundable except as set forth in Section 4 of this
Reinstatement Agreement.

3. Treatment of Certain Provisions in the Merger Agreement. For purposes of this
Reinstatement Agreement:

  (a) Section 1.02(c) of the Merger Agreement is amended by replacing "$25.00"
  with "$21.00."

  (b) Section 1.02(e) of the Merger Agreement is amended to read in its entirety as
  follows:

  
    "(e) All of (i) the Initial Deposit ($250,000), (ii) the Second Postponement
    Payment ($250,000), (iii) the Supplemental Shares Second Postponement Payment ($50,000),
    (iv) the Third Postponement Payment ($250,000), (v) the Supplemental Shares Third
    Postponement Payment ($50,000), (vi) the Deposit ($1,250,000), and (vii) the Supplemental
    Deposit ($250,000) (collectively, the "Purchaser Payments") are the property of
    Seller and those other persons and entities listed on Schedule A to the SPA
    ("Schedule A Stockholders") and are nonrefundable. The aggregate Merger
    Consideration payable to the Seller shall be reduced by the sum of (x) the Reinstatement
    Payment ($300,000), (y) the Seller’s pro-rata portion of the Purchaser Payments
    ($1,886,649) and (z) one-half (1/2) of the pro-rata portion of the Purchaser Payments paid
    to the Schedule A Stockholders other than Loeb ($231,676). The Merger Consideration to be
    received by the Schedule A Stockholders other than Loeb shall not be reduced by any amount
    attributable to the portion of the Purchaser Payments paid to such Schedule A Stockholders
    other than Loeb."

  

  (c) Sections 5.10, 5.11, 6.02(g) and (k), 6.04, 7.01(g), (h) and (i) and 7.02 of the
  Merger Agreement are null and void and of no further force and effect. Section 6.04 of the
  Merger Agreement which permitted the Company, at its option, to set-off any amounts
  payable by the Seller to the Company pursuant to that certain Letter Agreement, dated as
  of August 26, 2002, by and among the Seller, the Schedule A Stockholders and the Company
  (the "Letter Agreement"), with respect to the purchase of certain lots of real
  estate by the Seller is specifically deleted and of no further force and effect. The
  Letter Agreement is hereby terminated and of no further force and effect.

  (d) Section 6.02(h) of the Merger Agreement shall be limited to the consents required
  from Zions First National Bank.

  (e) The following new Section 6.03(h) shall be added to the Merger Agreement:

  
    "(h) all amounts advanced by Loeb to the Company as of the date hereof
    ($1,184,318), which amount includes the $225,000 insurance premium required to be
    reimbursed to Loeb as described in Section 6.03(g) of the Merger Agreement, plus any
    additional amounts advanced by Loeb to the Company prior to the Merger Closing
    (collectively, the "Loeb Advances") shall have been repaid in full by Purchaser
    to Loeb. Not less than one (1) Business Day prior to the Merger Closing, Loeb shall
    provide to the Purchaser a written statement setting forth the total amount of Loeb
    Advances, including the date and amount of each advance."

  

  (f) The second sentence of Section 1.03(a) of the Merger Agreement shall be amended to
  read in its entirety as follows:

  
    "Purchaser shall pay to the Paying Agent on the Merger Closing Date funds in an
    amount necessary for the payment in full of the Merger Consideration as provided herein,
    as reduced by the separate payment provided in Section 1.03(c), which the Purchaser is
    required to pay on the Merger Closing Date."

  

4. Refund of Payments. If the Reinstatement Payment has been made, but the
Merger Closing does not occur because (x) either the Seller or the Company has not
fulfilled the conditions applicable to it set forth in Section 6.02 of the Merger
Agreement, (other than clauses (a), (g), (h) and (k) thereof), (y) there is a Breach of
the representations contained in Section 4.1(f) of the SPA, which is incorporated in this
Reinstatement Agreement by reference, such that Purchaser would not receive at least
fifty-one percent (51%) of the Shares outstanding (assuming that all Options or other
rights to acquire common stock of the Company have been issued, exercised and converted to
common stock as applicable) (subsections (x) and (y), each a "Default"), or (z)
all of the conditions specified in Sections 6.03(a) and (b) of the Merger Agreement have
been satisfied in all material respects but the parties are prevented from completing the
Merger Closing if any judgment, injunction, order or decree of a court of competent
jurisdiction shall restrain or prohibit both the consummation of the Merger, and such
judgment, injunction, order or decree shall become final and non-appealable, then, in each
case, the Reinstatement Payment shall be returned by the Seller to Purchaser.

5. Seller Financing of the Company. At the Merger Closing, the Company,
Purchaser, CGP Acquisition, Inc. ("Borrower") and Seller will execute and
deliver to each other (i) a financing agreement, substantially in the form attached hereto
as Exhibit A (the "Financing Agreement"), pursuant to which Seller will loan to
Borrower, as Seller financing out of the Seller’s Merger Consideration, at the Merger
Closing an amount equal to $2.00 multiplied by the number of shares of the Company owned
by Seller ($4,371,866) and for which Merger Consideration is received at the Merger
Closing, and (ii) such note, deed of trust, intercreditor agreement and other agreements
and documents contemplated by the Financing Agreement.

6. Fees and Expenses.

(a) The parties specifically acknowledge and reaffirm Section 10.11 of the Merger
Agreement. In addition thereto, Purchaser shall bear all costs and expenses of each party
hereto, including reasonable attorneys’ fees, in connection with preparing for,
entering into and executing this Reinstatement Agreement, the Financing Agreement, the
note, the deed of trust, all amendments to the Information Statement and any other related
expense. The Company and Seller shall present Purchaser at least one (1) business day
prior to the Merger Closing an estimate of expenses incurred by Seller and/or the Company
and the Purchaser shall reimburse Seller for these estimated expenses at the Merger
Closing. Purchaser shall promptly reimburse Seller for expenses in excess of the estimated
expenses upon written demand by Seller. 

(b) The parties specifically acknowledge and reaffirm Section 13.11(e) of the SPA. At
the Merger Closing (i) Purchaser will reimburse an amount of $102,000 (the
"Reimbursement Amount") to the Company and/or the Seller (to the extent the
Seller has paid any portion of the Reimbursement Amount) for all time and expenditures
expended by the Company’s professional consultants for such attorneys’ and
professionals’ time and expenses in connection with Purchaser’s due diligence
and (ii) the Purchaser shall pay or reimburse the Company, the Seller or their attorneys
or consultants, as billed by such attorneys and consultants, from time to time (but no
more often than every two (2) weeks), for any additional amounts incurred from the date
hereof through the Merger Closing by the Company’s professional consultants for such
attorneys’ and professionals’ time and expenses in connection with
Purchaser’s due diligence (the "Subsequent Reimbursement Amount).

In the event the Merger Closing does not occur for any reason other than a Default or
the receipt by the Company or the Seller of a Superior Offer and termination of the Merger
Agreement pursuant to Section 7.01(e) thereof, (i) the Purchaser shall pay the Company or
the Seller, respectively, the Reimbursement Amount and (ii) the Purchaser shall pay the
Company or the Seller, respectively, the Subsequent Reimbursement Amount.

7. Closing. The Merger Closing will take place on June 16, 2003 or at such time
as may be determined by the extensions provided herein, at the offices of Torys LLP, 237
Park Avenue, New York, New York 10017, or such other place as the parties may agree, as
more particularly described in Section 1.01 of the Merger Agreement. Subject to the
extensions described in this Section 7 or any other extension as the parties hereto may
agree upon, the parties hereto recognize that time is of the essence. Any of the Company,
Seller or the Purchaser may terminate this Reinstatement Agreement if the Merger Closing
does not occur on or before the later of (i) if twelve (12) days following the filing of
the Information Statement with the SEC have elapsed (the "Waiting Period") and
the SEC has not given the Company notice that it will comment on the Information
Statement, the twenty-fifth (25th) day following the expiration of the Waiting
Period, (ii) if the SEC elects to comment on the Information Statement, the twenty-fifth
(25th) day following the date on which all such SEC comments are resolved and
(iii) in the event an appeal is filed within the applicable statutory appeal period
contesting the approval of the City Council of Park City (the "City Council") of
the subdivision of the Deeded Property as evidenced by that certain letter dated April 23,
2003 of the City Council, each of the parties agree to extend the date on which the Merger
Closing shall occur until five (5) Business Days after such time as any such appeal has
been resolved. Notwithstanding the extensions set forth in the previous sentence of this
Section 7, any of the Company, the Purchaser or the Seller may terminate this
Reinstatement Agreement if the Merger Closing does not occur on or before July 15, 2003
unless the parties agree to further extend the date of the Merger Closing. For purposes of
this Section 7, the "Deeded Property" shall mean the property on Flagstaff
Mountain which was the subject of the Company’s application for a metes and bounds
subdivision presented to the Park City Planning Commission (the "Commission") at
a meeting of the Commission on March 26, 2003.

8. Compliance with Laws. The parties hereto shall execute such agreements and
other documents, and shall take such other actions, as the other parties hereto may
reasonably request (prior to, at or after the Merger Closing Date) for the purpose of
ensuring that the Merger is carried out in full compliance with the provisions of all
applicable laws and regulations, including, without limitation, the United States
securities laws and regulations.

9. Governing Law. This Reinstatement Agreement shall be construed in accordance
with, and governed in all respects by the laws of the State of Delaware (without giving
effect to principles of conflict of law).

10. Venue and Jurisdiction; Consent to Service of Process; Waiver of Jury Trial.
If any legal Proceedings or other legal action relating to this Reinstatement Agreement is
brought or otherwise initiated, the venue therefor shall be in Delaware, which shall be
deemed to be a convenient forum. The Purchaser and the Sellers hereby expressly and
irrevocably consent and submit to the jurisdiction of the courts in Delaware and expressly
waive (to the extent permitted by law) the right to bring an action in any other
jurisdiction. Process in any action or Proceeding referred to in the preceding sentence
may be served on any party anywhere in the world. Each of the parties hereto irrevocably
waives any and all right to trial by jury in any legal Proceeding arising out of or
related to this Reinstatement Agreement or the Merger.

11. Notices. All notices, requests, demands and other communications to any
party hereunder shall be given in the manner contemplated by Section 10.04 of the Merger
Agreement; provided, however, that no such notices, requests, demands and other
communications shall be made to Robert A. Trevisani, Esq., Gatsby Hannah LLP, 225 Franklin
Street, Boston, MA 02110.

12. Headings. The underlined headings contained in this Reinstatement Agreement
are for convenience of reference only, shall not be deemed to be a part of this
Reinstatement Agreement and shall not be referred to in connection with the construction
or interpretation of this Reinstatement Agreement.

13. Assignment. No party hereto may assign any of its rights or delegate any of
its obligations under this Reinstatement Agreement to any other Person without the prior
written consent of the other parties hereto; provided, however, that (i) the Seller
may, prior to the Merger Closing, assign to any Person its right to receive all or any
portion of the Merger Consideration the Seller is entitled to and (ii) the Purchaser may
assign all or part of its rights under this Reinstatement Agreement to a company or other
legal entity controlled by it.

14. Parties in Interest. Nothing in this Reinstatement Agreement is intended to
provide any rights or remedies to any Person (including any employee or creditor of the
Company) other than the parties hereto.

15. Severability. In the event that any provision of this Reinstatement
Agreement, or the application of such provision to any Person or set of circumstances,
shall be determined to be invalid, unlawful, void or unenforceable to any extent, the
remainder of this Reinstatement Agreement, and the application of such provision to
Persons or circumstances other than those as to which it is determined to be invalid,
unlawful, void or unenforceable, shall not be affected and shall continue to be valid and
enforceable to the fullest extent permitted by law; provided, however, that the
parties shall be entitled to receive substantially all of the economic benefit
contemplated by this Reinstatement Agreement.

16. Entire Agreement. This Reinstatement Agreement (including all Schedules and
Exhibits), the Merger Agreement, the SPA and the letter agreement, dated the date hereof,
regarding certain payments under Section 6(b), set forth the entire understanding of the
Purchaser, the Company and the Seller and supersede all other agreements and
understandings between the Purchaser, the Company and the Seller relating to the subject
matter hereof and thereof.

17. Waiver. No failure on the part of any party hereto to exercise any power,
right, privilege or remedy under this Reinstatement Agreement, and no delay on the part of
any party hereto in exercising any power, right, privilege or remedy under this
Reinstatement Agreement, shall operate as a waiver thereof; and no single or partial
exercise of any such power, right, privilege or remedy shall preclude any other or further
exercise thereof or of any other power, right, privilege or remedy.

18. Amendments. This Reinstatement Agreement may not be amended, modified,
altered or supplemented except by means of a written instrument executed on behalf of the
Purchaser, the Company and the Seller.

19. Interpretation of this Reinstatement Agreement.

(a) Each party hereto acknowledges that it has participated in the drafting of this
Reinstatement Agreement, and any applicable rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not be applied in
connection with the construction or interpretation of this Reinstatement Agreement.

(b) Whenever required by the context hereof, the singular number shall include the
plural, and vice versa; the masculine gender shall include the feminine and neuter genders
and the neuter gender shall include the masculine and feminine genders.

(c) As used in this Reinstatement Agreement, the words "include,"
"including" and variations thereof, shall not be deemed to be terms of
limitation, and shall be deemed to be followed by the words "without
limitation."

(d) References herein to "Sections" and "Exhibits" are intended to
refer to Sections and Exhibits to this Reinstatement Agreement.

20. Counterparts and Fascimile. This Reinstatement Agreement may be signed in
counterparts, all of which together shall constitute one and the same instrument. The
parties hereto may provide signatures to this Reinstatement Agreement by facsimile, and
such facsimile signatures shall be deemed to be the same as original signatures.

* * *

IN WITNESS WHEREOF, the parties hereto have caused this Reinstatement Agreement to be
duly executed by their duly authorized representatives as of the day and year first above
written.

CAPITAL GROWTH PARTNERS LLC, by Talisker Mountain Developments, Inc.,

as Manager

By: /s/ Jeff Levine

Name: Jeff Levine

Title: Secretary and Treasurer

CGP ACQUISITION, INC.

By: /s/ Jeff Levine

Name: Jeff Levine

Title: Secretary and Treasurer

UNITED PARK CITY MINES COMPANY

By: /s/ Hank Rothwell

Name: Hank Rothwell

Title: President

LOEB INVESTORS CO. XL

By: /s/ Joseph S. Lesser

Name: Joseph S. Lesser

Title: Managing Partner

 

Exhibit A

To Reinstatement of Agreement and Plan of Merger Dated May 12, 2003

FINANCING AGREEMENT

This FINANCING AGREEMENT is dated [Merger Closing Date] by and among Capital Growth
Partners LLC, a Utah limited liability company ("CGP"), Loeb Investors Co. XL, a
New York partnership ("Loeb"), United Park City Mines Company, a Delaware
corporation ("UPK") and CGP Acquisition, Inc., a Delaware corporation and a
wholly owned subsidiary of CGP ("Borrower").

WHEREAS, CGP, UPK, Loeb and the Borrower, entered into a Reinstatement of Agreement and
Plan of Merger dated May 12, 2003 (the "Reinstatement Agreement") which
reinstates the terms and conditions of the Agreement and Plan of Merger, dated August 26,
2002 by and among CGP, UPK, the Borrower and certain of those entities and individuals
whose names are set forth on Exhibit A to the Agreement and Plan of Merger (the
"Merger Agreement");

WHEREAS, in accordance with the terms of the Merger Agreement, the Borrower will merge
with and into UPK, and UPK shall be the surviving company (the "Surviving
Company") and assume all the rights and obligations of the Borrower; 

WHEREAS, following the Merger, the Surviving Company will be an indirect subsidiary of
CGP;

WHEREAS, the Borrower has requested that Loeb, provide seller financing to the Borrower
in the aggregate original principal amount of FOUR MILLION THREE HUNDRED SEVENTY-ONE
THOUSAND EIGHT HUNDRED SIXTY-SIX AND 00/100 DOLLARS ($4,371,866.00) (the "Seller
Financing") to partially finance the transaction contemplated under the Reinstatement
Agreement upon terms and conditions mutually satisfactory to CGP, the Borrower and Loeb;

WHEREAS, Empire Mountain Village, LLC ("EMV") has options to purchase parcels
of land ("Pod A"), as more particularly described on Schedule A
attached hereto, pursuant to a Purchase and Sale and Option Agreement (the "Option
Agreement") dated April 30, 2003, by and between CGP and EMV; and

WHEREAS, within Pod A is a parcel of land which will have not less than 80,000 sq. ft.
of density (the "Secured Property"), as more particularly described on Schedule B
attached hereto and EMV may purchase, at its option, the Secured Property in
accordance with the terms of the Option Agreement.

All capitalized terms not defined herein shall have the meaning ascribed to them in the
Reinstatement Agreement.

NOW, THERFORE, in consideration of the above premises, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, each of the
parties hereto agrees as follows:

1. Loeb agrees:

  (A) to provide the Seller Financing to the Borrower and take back a promissory note
  substantially in the form attached hereto as Exhibit A (the "Note")
  substantially on the following terms:

 

		Principal Amount:

    	$4,371,866
		Security:

    	The Note will be secured by a deed of trust and a mortgage
    over the Secured Property.
		Issuer/Obligor:

    	UPK which is the owner of the Secured Property and Pod D and
    as the Surviving Company following the Merger will be the owner of subsidiaries which own
    Pod A and Pod B2
		Term:

    	To [fifth anniversary of Merger Closing Date].
		Interest Rate:

    	Years 1-3 – 6-1/2% per annum, compounding quarterly
    payable upon maturity of the Note
		Years 4-5 – 10% per annum, payable quarterly in arrears.
		Repayment:

    	Repayment to be made out of the proceeds from the exercise of
    the applicable option by EMV as set forth in the Option Agreement, an alternate buyer or
    otherwise by the Issuer. Recourse will be limited to the Issuer and the Secured Property.
		Expenses:

    	CGP agrees to pay all legal expenses associated with
    enforcement of Loeb’s rights under the Note and legal expenses associated with
    preparing for, entering into and executing the Note and the Mortgage (as defined below)
    and the premiums with respect to the title policy.

; and 

(B) that it will not bring an action or other proceeding seeking reorganization,
involuntary bankruptcy or other relief with respect to UPK, as the Surviving Company, or
the debts thereof under any bankruptcy, insolvency or other similar laws now or
hereinafter in effect until the financing provided by JDI Park City, L.L.C.
("JDI") is repaid. JDI is a third party beneficiary to this provision and is
entitled to enforce this provision.

2. CGP and UPK, as the Surviving Company, hereby agree:

(A) CGP shall diligently pursue approval of an administrative subdivision of the
Secured Property and the obtaining of Land Use Approvals (as hereinafter defined). In the
event that CGP fails to complete such an administrative subdivision and obtain the Land
Use Approvals within eight (8) months after the Merger Closing, or if CGP fails to use
commercially reasonable diligence in pursuing such subdivision and the Land Use Approvals,
and such failure continues for more than ten days after written notice by Loeb to CGP of
such failure and CGP has not presented, within such ten day period, evidence reasonably
satisfactory to Loeb that such subdivision will be timely completed, and Land Use
Approvals timely obtained, subject to subsection 2(D) below, Loeb shall have the right,
but not the obligation, to assume control of the pursuit of such subdivision and Land Use
Approvals, and CGP shall cooperate with Loeb and shall, upon request, execute all
applications and other documents which must be executed by the owner of the property to be
subdivided in order to complete such subdivision or to obtain the Land Use Approvals. In
such event, CGP shall reimburse all reasonable costs and expenses incurred by Loeb in
completing the administrative subdivision and obtaining the Land Use Approvals.
Furthermore, CGP shall provide Loeb with a copy of the application (and other supporting
documents) relating to such administrative subdivision and Land Use Approvals a reasonable
time prior to the filing of any such applications (and other supporting documents).

(B) In applying this Section 2, the completion of the administrative subdivision and
obtaining of the Land Use Approvals shall be treated as a single project, such that a
failure to diligently pursue either shall be treated as a failure to diligently pursue
both, and that if a transfer of any right or responsibility to either complete the
administrative subdivision or obtain the Land Use Approvals shifts from one entity to
another, the rights and responsibilities for the entire project shall shift.

(C) For purposes of this Section 2, "Land Use Approvals" shall mean such
general plan amendments, master planned development approvals, conditional use permits,
subdivision approvals and other land use approvals by or of Park City and/or Summit
County, as applicable, or any other governmental entity having jurisdiction over the
Secured Property, as Loeb deems necessary or desirable to reasonably assure, to
Loeb’s satisfaction, that a residential development, having an aggregate floor area
of not less than 80,000 square feet, could be legally constructed on the Secured Property.

(D) The rights granted to Loeb pursuant to this Section 2 shall be subject to the terms
and conditions of that certain Agreement and Covenant of Cooperation, dated as of the date
hereof, by and among UPK, Loeb, EMV, JDI, Mountain Developments I, Inc., a Delaware
corporation, Blue Ledge Corporation, a Delaware corporation and CIBC WMC, Inc, a Delaware
corporation.

3. CGP and UPK represent and warrant to Loeb that following the Merger Closing Date,
UPK, as the Surviving Company, will have good and marketable title, in fee simple, to the
Secured Property and Pod D as more particularly described on Schedule C attached hereto,
free and clear of all mortgages, liens, encumbrances, equities, claims and obligations to
other persons, of every kind and character other than the permitted exceptions agreed to
by Loeb and CGP, the security interests held by CIBC WMC Inc., a Delaware corporation and
JDI and the options held by EMV pursuant to the Option Agreement.

4. The obligation of Loeb to provide the Seller Financing is subject to (i) the receipt
by Loeb of an executed Note and an executed Deed of Trust (the "Mortgage"),
substantially in the form attached hereto as Exhibit A and B, respectively and (ii) the
Closing of the Merger under the Merger Agreement.

5. Issuance. The Note and the Mortgage will be issued in the name of Loeb.

6. Compliance with Laws. The parties hereto shall execute such agreements
and other documents, and shall take such other actions, as the other parties hereto may
reasonably request (prior to, at or after the Merger Closing Date) for the purpose of
ensuring that the Merger is carried out in full compliance with the provisions of all
applicable laws and regulations, including, without limitation, the United States
securities laws and regulations.

7. Governing Law. This Agreement shall be construed in accordance with, and
governed in all respects by, the laws of the State of Delaware (without giving effect to
principles of conflict of law).

8. Notices. All notices, requests, demands and other communications to any
party hereunder shall be given in the manner contemplated by Section 10.04 of the Merger
Agreement; provided; however no such notices, requests, demands or other communications
shall be sent to Robert A. Trevisani, Esq., Gadsby Hannah LLP, 225 Franklin Street, Boston
MA, 02110.

9. Parties in Interest. Nothing in this Agreement is intended to provide any
rights or remedies to any Person (including any employee or creditor of the Company) other
than the parties hereto.

10. Waiver. No failure on the part of any party hereto to exercise any
power, right, privilege or remedy under this Agreement, and no delay on the part of any
party hereto in exercising any power, right, privilege or remedy under this Agreement,
shall operate as a waiver thereof; and no single or partial exercise of any such power,
right, privilege or remedy shall preclude any other or further exercise thereof or of any
other power, right, privilege or remedy.

11. Amendments. This Agreement may not be amended, modified, altered or
supplemented except by means of a written instrument executed on behalf of CGP and Loeb.

 

12. Counterparts and Facsimile. This Agreement may be signed in
counterparts, all of which together shall constitute one and the same instrument. The
parties hereto may provide signatures to this Agreement by facsimile, and such facsimile
signatures shall be deemed to be the same as original signatures.

13. Fees and Expenses. CGP shall bear all costs and expenses of each party
hereto, including the premiums with respect to the title policy and reasonable
attorneys’ fees, in connection with preparing for, entering into and executing this
Agreement, the Note and the Mortgage.

 

* * *

IN WITNESS WHEREOF, the undersigned have duly executed this Financing Agreement as of
the date written above.

 

CAPITAL GROWTH PARTNERS, LLC

by, Talisker Mountain Developments, Inc.,

as Manager

By: ______________________________

Name: Mark Thorne

Title: Vice President

UNITED PARK CITY MINES COMPANY

By: ______________________________

Name: Hank Rothwell

Title: President

CGP ACQUISITIONS, INC.

By: ______________________________

Name: Mark Thorne

Title: Vice President

LOEB INVESTORS CO. XL

By: ______________________________

Name: Joseph S. Lesser 

Title: Managing Partner

SCHEDULE A

Description of Pod A

[To be delivered and approved by the parties hereto on the Merger
Closing Date]

 

SCHEDULE B

A parcel of land located in the southwest quarter of Section 21 and the northwest
quarter of Section 28, Township 2 South, Range 4 East, Salt Lake Base and Meridian.

Beginning at a point that is North 88 degrees 09’24" East 2263.41 feet along
Section Line and South 75.74 feet from the northwest corner of Section 28, Township 2
South, Range 4 East, Salt Lake Base and Meridian, said point also being on the southerly
line of the Marsac Avenue Right of Way, according to the official plat thereof on file and
of record in the office of the recorder, Summit County, Utah, and also being on a 775.00
foot curve to the left of which the radius point bears North 76 degrees 02’06"
West; and running thence along the southerly line of the Marsac Avenue Right of Way the
following two (2) courses: 1) northerly along the arc of said curve 172.84 feet through a
central angle of 12 degrees 46’40" to a point on a 625.58 foot radius compound
curve to the left of which the radius point bears North 88 degrees 48’45" West;
thence 2) northerly along the arc of said curve 129.66 feet through a central angle of 11
degrees 52’33"; thence South 89 degrees 10’36" East 299.73 feet;
thence South 32 degrees 51’20" West 76.81 feet; thence South 01 degrees
50’14" East 216.36 feet; thence South 86 degrees 55’33" West 277.38
feet to the Point of Beginning.

Description contains 1.74 acres. 

SCHEDULE C

Description of Pod D

[To be delivered and approved by the parties hereto on the Merger
Closing Date]

EXHIBIT A

Form of Promissory Note

[Exhibit Omitted]

EXHIBIT B

Form of Deed of Trust

[Exhibit Omitted]Exhibit 10.8

INDEMNITY AGREEMENT

This INDEMNITY AGREEMENT is made as of February ____, 2003,
by and between Piccadilly Cafeterias, Inc., a Louisiana corporation (the
"Corporation"), and ____________________ ("Indemnitee").

WHEREAS, the Corporation seeks to attract and retain
competent and experienced persons to serve as directors and officers and desires
to protect appropriately such individuals against personal liability and expense
that they may incur in connection with their service by providing director and
officer liability insurance and corporate indemnification;

WHEREAS, the Business Corporation Law of the State of
Louisiana, where the Corporation is organized, empowers the Corporation to enter
into this Indemnity Agreement; and

WHEREAS, the Corporation desires and has requested the
Indemnitee to continue to serve as a director or officer and in connection
therewith believes it is appropriate and necessary to enter into this Agreement.

NOW, THEREFORE, in consideration of the Indemnitee's
agreement to continue to serve as a director or officer of the Corporation, the
mutual premises contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
stipulate and agree as follows:

1.    Agreement to Serve.
  Indemnitee shall serve or continue to serve as a director or officer of the Corporation, and any other corporation,
subsidiary, partnership, joint venture, trust or other enterprise of which he is
serving at the request of the Corporation, and agrees to serve in such
capacities for so long as he is duly elected or appointed and qualified or until
such earlier time as he tenders his resignation in writing.

2.    Definitions.   As used in this Agreement:

(a)    The term "Claim" shall mean any threatened, pending or
completed claim, action, suit or proceeding, including appeals, whether civil,
criminal, administrative or investigative and whether made judicially or
extra-judicially, including any action by or in the right of the Corporation, or
any separate issue or matter therein, as the context requires, arising out of
any past, present or future act, omission, neglect or breach of duty, including
without limitation, any claim, action, suit or proceeding relating to any actual
or alleged error, omission, or misstatement of Indemnitee while serving in his
or her capacity as a director of the Corporation.

(b)    The term "Determining Body" shall mean (i) those members
of the Board of Directors who are not named as parties to the Claim for which
indemnification is being sought ("Impartial Directors"), if there are at least
three Impartial Directors, or (ii) a committee of at least three Impartial
Directors appointed by the Board or a duly authorized committee thereof
(regardless whether the directors voting on such appointment are Impartial
Directors) or (iii) if there are fewer than three Impartial Directors or if the
Board of Directors or the committee appointed pursuant to clause (ii) of this
paragraph so directs (regardless whether the directors voting on such
appointment are Impartial Directors), independent legal counsel, which may be
the regular outside counsel of the Corporation, as designated by the Impartial
Directors or, if no such directors exist, the full Board of Directors.

(c)    The term "Disbursing Officer" shall mean the Chairman of
the Board of the Corporation or, if the Chairman of the Board has a direct or
indirect interest in the Claim for which indemnification is being sought, any
officer who does not have such an interest and who is designated by the Chairman
of the Board to be the Disbursing Officer with respect to indemnification
requests related to the Claim, which designation shall be made promptly after
receipt of the initial request for indemnification with respect to such Claim.

(d)    The term "Expenses" shall mean any expenses or costs
including, without limitation, reasonable costs of investigation, costs of
attachment or similar bonds, attorney's fees, judgments, punitive or exemplary
damages, fines, excise taxes, amounts paid in settlement, and any expenses
incurred by Indemnitee in enforcing his or her rights under this Agreement.

-1-

(e)    The term "Insurance Policy" shall mean the Declaration
Executive Liability and Indemnification Policy. Policy No.8127 63 23-B that the
Corporation has obtained from Federal Insurance Company of the Chubb Group of
Insurance Companies on behalf of its directors and officers as such policy is
renewed or continued from time to time, or any other comparable policy or
policies of insurance that the Corporation may obtain on behalf of its directors
and officers in substitution or replacement thereof.

3.    Limitation of Liability.    To the fullest extent
permitted by Article XIV of the Articles of Incorporation of the Corporation (as
in effect on the date hereof), Indemnitee shall not be liable for any breach of
his fiduciary duty. If and to the extent such provisions are amended to permit
further limitations of liability, Indemnitee shall not be liable for any breach
of his fiduciary duty to the fullest extent permitted after any such amendment.

4.    Maintenance of Insurance.

(a)    The Corporation represents and warrants that it presently
maintains in force and effect the Insurance Policy, and Indemnitee represents
and warrants that he has been furnished with a copy thereof. Subject only to the
provisions of Section 4(b) hereof, the Corporation hereby agrees that, so long
as Indemnitee shall continue to serve as a director or in any other capacity
referred to in Section 5(a) hereof and thereafter so long as Indemnitee shall be
subject to any possible Claim, the Corporation shall use its commercially
reasonable best efforts to purchase and maintain in effect for the benefit of
Indemnitee one or more valid and enforceable policies of directors and officers
liability insurance providing, in all respects, coverage at least comparable to
that currently provided pursuant to the Insurance Policy.

(b)    The Corporation shall not be required to purchase and
maintain the Insurance Policy or any comparable policy if the Board of
Directors, after due consideration of whether (i) the costs of obtaining the
insurance coverage exceed the benefits obtained from the insurance, and (ii)
dispensing with, or reducing the amount of such insurance coverage would
materially and adversely affect the ability of the Corporation to attract and
retain qualified directors, determines in good faith that directors and officers
liability insurance is not available at a reasonable price or upon reasonable
terms. 

5.    Additional Indemnity.

(a)    The Corporation shall indemnify and hold harmless
Indemnitee against any Expenses actually and reasonably incurred by Indemnitee
(as they are incurred) in connection with any Claim against Indemnitee, or
involving Indemnitee solely as a witness or person required to give evidence, by
reason of Indemnitee's position as a (i) director or officer of the Corporation,
(ii) director or officer of any subsidiary of the Corporation or as a fiduciary
with respect to any employee benefit plan of the Corporation, or (iii) director,
officer, partner, employee or agent of another corporation, partnership, joint
venture, trust or other for-profit or not-for-profit entity or enterprise, if
such position is or was held at the request of the Corporation, whether relating
to service in such position before or after the effective date of this
Agreement, if (A) Indemnitee is successful in his defense of the Claim on the
merits or otherwise or (B) Indemnitee has been found by the Determining Body to
have met the Standard of Conduct (as hereinafter defined); provided that (1) the
amount of Expenses for which the Corporation shall indemnify Indemnitee may be
reduced by the Determining Body to such amount as it deems proper if it
determines that the Claim involved the receipt of personal benefit by
Indemnitee, and (2) no indemnification shall be made in respect of any Claim as
to which Indemnitee shall have been adjudged by a court of competent
jurisdiction, after exhaustion of all appeals therefrom, to be liable for
willful or intentional misconduct in the performance of his duty to the
Corporation or to have obtained an improper personal benefit, unless, and only
to the extent that, a court shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case,
Indemnitee is fairly and reasonably entitled to indemnity for such Expenses
which the court shall deem proper.

(b)    For purposes of this Agreement, the "Standard of Conduct"
is met when conduct by Indemnitee with respect to which a Claim is asserted was
conduct performed in good faith which he reasonably believed to be in, or not
opposed to, the best interest of the Corporation, and, in the case of a Claim
which is a criminal action or proceeding, conduct that Indemnitee had no
reasonable cause to believe was unlawful. The termination of any Claim by
judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a presumption
that Indemnitee did not meet the Standard of Conduct.

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(c)    Promptly upon becoming aware of the existence of any
Claim as to which Indemnitee may be indemnified for Expenses and as to which
Indemnitee desires to obtain indemnification, Indemnitee shall notify the
Chairman of the Board of the Corporation, but the failure to promptly notify the
Chairman of the Board shall not relieve the Corporation from any obligation
hereunder, except and to the extent that such failure has materially and
irrevocably harmed the Corporation's ability to defend against such Claim
pursuant to Section 5(f) hereof. Upon receipt of such request, the Chairman of
the Board shall promptly advise the members of the Board of Directors of the
request and that the establishment of a Determining Body with respect thereto
will be a matter to be considered at the next regularly scheduled meeting of the
Board. If a meeting of the Board of Directors is not regularly scheduled within
60 calendar days of the date the Chairman of the Board receives notice of the
Claim, the Chairman of the Board shall cause a special meeting of the Board of
Directors to be called within such period in accordance with the provisions of
the Corporation's By-laws. At such regularly scheduled or special meeting, the
Board shall establish a Determining Body for purposes of determining whether the
Indemnitee has met the Standard of Conduct and whether the Indemnitee should be
indemnified by the Corporation. After the Determining Body has been established,
the Chairman of the Board shall inform Indemnitee of the constitution of the
Determining Body and shall demand that Indemnitee provide the Determining Body
with all facts relevant to the Claim known to him, and deliver to the
Determining Body all documents relevant to the Claim in his possession. The
Chairman of the Board shall further inform Indemnitee that the Determining Body
shall not be required to begin deliberations until such information is provided.
No later than 45 days (the "Determination Date") of its receipt from Indemnitee
of such information, together with such additional information as the
Determining Body may reasonably request of Indemnitee prior to such date (the
receipt of which shall not begin a new 45-day period), the Determining Body
shall determine whether or not Indemnitee has met the Standard of Conduct and
shall advise Indemnitee of its determination and briefly explain the principal
factors that it relied upon in making its determination. If Indemnitee shall
have supplied the Determining Body with all relevant information, including all
additional information reasonably requested by the Determining Body, and the
Determining Body shall have failed to make the Standard of Conduct determination
by the Determination Date, the Standard of Conduct shall be conclusively deemed
to have been met.

(d)    If at any time during the 45-day period ending on the
Determination Date, Indemnitee becomes aware of any relevant facts or documents
not theretofore provided by him to the Determining Body, Indemnitee shall
promptly inform the Determining Body of such facts or documents, unless the
Determining Body has obtained such facts or documents from another source. The
provision of such facts to the Determining Body shall not begin a new 45-day
period.

(e)    The Determining Body shall have no power to revoke a
determination that Indemnitee met the Standard of Conduct unless Indemnitee (i)
submits fraudulent information to the Determining Body at any time during the 45
days prior to the Determination Date or (ii) fails to comply with the provisions
of Sections 5(c) or 5(d) hereof, including without limitation Indemnitee's
obligation to submit information or documents relevant to the Claim reasonably
requested by the Determining Body prior to the Determination Date.

(f)    In the case of any Claim not involving any proposed,
threatened or pending criminal proceeding,

(i)    if Indemnitee has, in the judgment of the Determining
Body, met the Standard of Conduct, the Corporation may, except as otherwise
provided below, individually or jointly with any other indemnifying party
similarly notified, assume the defense thereof with counsel reasonably
satisfactory to Indemnitee. If the Corporation assumes the defense of the Claim,
it shall keep Indemnitee informed as to the progress of such defense so that
Indemnitee may make an informed decision as to the need for separate counsel.
After notice from the Corporation that it is assuming the defense of the Claim,
it will not be liable to Indemnitee under this Agreement for any legal or other
expenses subsequently incurred by Indemnitee in connection with the defense
other than reasonable costs of investigation or as otherwise provided below.
Indemnitee shall have the right to employ its own counsel in such action, suit
or proceeding but the fees and expenses of such counsel incurred after such
notice from the Corporation of its assumption of the defense shall be at the
expense of Indemnitee unless (A) the employment of counsel by Indemnitee has
been authorized by the Determining Body, (B) Indemnitee shall have concluded
reasonably that there may be a conflict of interest between the Corporation and
Indemnitee in the conduct of the defense of such action or (C) the Corporation
shall not in fact have employed counsel to assume the defense of such action, in
each of which cases the fees and expenses of counsel shall be at the expense of
the Corporation. The Corporation shall not be entitled to assume the defense of
any action, suit or proceeding brought by or in the right of the Corporation or
as to which Indemnitee shall have made the conclusion provided for in (B) above;
and

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(ii)    the Corporation shall fairly consider any proposals by
Indemnitee for settlement of the Claim, and shall not unreasonably withhold
approval of such proposal. If the Corporation proposes a settlement of the Claim
and such settlement is acceptable to the person asserting the Claim, or the
Corporation believes a settlement proposed by the person asserting the Claim
should be accepted, it shall inform Indemnitee of the terms of such proposed
settlement and shall fix a reasonable date by which Indemnitee shall respond. If
Indemnitee agrees to such terms, he shall execute such documents as shall be
necessary to make final the settlement. If Indemnitee does not agree with such
terms, Indemnitee may proceed with the defense of the Claim in any manner he
chooses, provided that if Indemnitee is not successful on the merits or
otherwise, the Corporation's obligation to indemnify such Indemnitee as to any
Expenses incurred following his disagreement with the Corporation shall be
limited to the lesser of (A) the total Expenses incurred by Indemnitee following
his decision not to agree to such proposed settlement or (B) the amount that the
Corporation would have paid pursuant to the terms of the proposed settlement.
If, however, the proposed settlement would impose upon Indemnitee any
requirement to act or refrain from acting that would materially interfere with
the conduct of Indemnitee's affairs, Indemnitee may refuse such settlement and
continue his defense of the Claim, if he so desires, at the Corporation's
expense in accordance with the terms and conditions of this Agreement without
regard to the limitations imposed by the immediately preceding sentence. In any
event, the Corporation shall not be obligated to indemnify Indemnitee for any
amount paid in a settlement that the Corporation has not approved.

(g)    In the case of any Claim involving a proposed, threatened
or pending criminal proceeding, Indemnitee shall be entitled to conduct the
defense of the Claim with counsel of his choice and to make all decisions with
respect thereto, provided, however, that the Corporation shall not be obliged to
indemnify Indemnitee for any amount paid in settlement of such a Claim unless
the Corporation has approved such settlement.

(h)    After notifying the Corporation of the existence of a
Claim, Indemnitee may from time to time request the Corporation to pay the
Expenses (other than judgments, fines, penalties or amounts paid in settlement)
that he incurs in pursuing a defense of the Claim prior to the time that the
Determining Body determines whether the Standard of Conduct has been met. The
Disbursing Officer shall pay to Indemnitee the amount requested (regardless of
Indemnitee's apparent ability to repay such amount) upon receipt of an
undertaking by or on behalf of Indemnitee to repay such amount if it shall
ultimately be determined that he is not entitled to be indemnified by the
Corporation under the circumstances, provided, however, that if the Disbursing
Officer does not believe such amount to be reasonable, he shall advance the
amount deemed by him to be reasonable and Indemnitee may apply directly to the
Determining Body for the remainder of the amount requested.

(i)    After the Determining Body has determined that the
Standard of Conduct has been met, for so long as and to the extent that the
Corporation is required to indemnify Indemnitee under this Agreement, the
provisions of Section 5(h) hereof shall continue to apply with respect to
Expenses incurred after such time except that (i) no undertaking shall be
required of Indemnitee and (ii) the Disbursing Officer shall pay to Indemnitee
the amount of any fines, penalties or judgments against him which have become
final and for which he is entitled to indemnification hereunder, and any amount
of indemnification ordered to be paid to him by a court.

(j)    Any determination by the Corporation with respect to
settlement of a Claim shall be made by the Determining Body.

(k)    All determinations and judgments made by the Determining
Body hereunder shall be made in good faith.

6.    Enforcement.

(a)    The rights provided by this Agreement shall be
enforceable by Indemnitee in any court of competent jurisdiction.

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(b)    If Indemnitee seeks a judicial adjudication of his or her
substantive rights under, or to recover damages for a breach of any of the
substantive provisions of, this Agreement, Indemnitee shall be entitled to
recover from the Corporation, and shall be indemnified by the Corporation
against, any and all expenses actually and reasonably incurred by him in
connection with such proceeding, but only if he prevails therein. If it shall be
determined that Indemnitee is entitled to receive part but not all of the relief
sought, then Indemnitee shall be entitled to be reimbursed for all expenses
incurred by him in connection with such judicial adjudication if the amount to
which he is determined to be entitled exceeds 50% of the amount of his claim.
Otherwise, the expenses incurred by Indemnitee in connection with such judicial
adjudication shall be appropriately prorated.

(c)    Notwithstanding Section 6(b) hereof, if Indemnitee seeks
a judicial adjudication of his or her rights under, or to recover damages for a
breach of, this Agreement, on the basis that the Corporation failed to establish
a Determining Body in accordance with the procedures contained in Section 5(c)
hereof following proper notification by the Indemnitee to the Chairman of the
Board that a Claim exists against Indemnitee, the Corporation shall pay any and
all expenses actually and reasonably incurred by him in connection with such
proceeding as they become due.

(d)    In any judicial proceeding described in this Section 6,
the Corporation shall bear the burden of proving that Indemnitee is not entitled
to the relief sought.

7.    Saving Clause.    If any provision of this Agreement
is determined by a court having jurisdiction over the matter to violate or
conflict with applicable law, the court shall be empowered to modify or reform
such provision so that, as modified or reformed, such provision provides the
maximum indemnification permitted by law and such provision, as so modified or
reformed, and the balance of this Agreement, shall be applied in accordance with
their terms. Without limiting the generality of the foregoing, if any portion of
this Agreement shall be invalidated on any ground, the Corporation shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated and to the full
extent permitted by law with respect to that portion that has been invalidated.

8.    Non-Exclusivity.

(a)    The
indemnification and advancement of Expenses provided by or granted pursuant to
this Agreement shall not be deemed exclusive of any other rights to which
Indemnitee is or may become entitled under any statute, articles of
incorporation, by-law, authorization of stockholders or directors, agreement, or
otherwise.

(b)    It is the
intent of the Corporation by this Agreement to indemnify and hold harmless
Indemnitee to the fullest extent permitted by law, so that if applicable law
would permit the Corporation to provide broader indemnification rights than are
currently permitted, the Corporation shall indemnify and hold harmless
Indemnitee to the fullest extent permitted by applicable law notwithstanding
that the other terms of this Agreement would provide for lesser indemnification.
The obligations of the Corporation under this Agreement shall continue as to
Indemnitee as to any action taken or not taken while serving in an indemnified
capacity even though he or she may have ceased to serve in any such capacity at
the time of any action, suit or other covered proceeding.

9.    Confidentiality.    The Corporation and Indemnitee
shall keep confidential to the extent permitted by law and their fiduciary
obligations all information and determinations provided pursuant to or arising
out of the operations of this Agreement and the Corporation and Indemnitee shall
instruct its or his agents and employees to do likewise.

10.    Counterparts.    This Agreement may be executed in
any number of counterparts, each of which shall constitute an original but all
of which taken together shall be deemed to constitute a single instrument.

11.    Applicable Law.    This Agreement shall be governed
by and construed in accordance with the substantive laws of the State of
Louisiana.

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12.    Successors and Assigns.    This Agreement shall be
binding upon Indemnitee and upon the Corporation, its successors and assigns,
and shall inure to the benefit of Indemnitee's heirs, personal representatives,
and assigns and to the benefit of the Corporation, its successors and assigns.

13.    Amendment.    No amendment, modification, termination
or cancellation of this Agreement shall be effective unless made in writing
signed by the Corporation and Indemnitee. Notwithstanding any amendment,
modification, termination or cancellation of this Agreement or any portion
hereof, Indemnitee shall be entitled to indemnification in accordance with the
provisions hereof with respect to any acts or omissions of Indemnitee which
occur prior to such amendment, modification, termination or cancellation.

14.    Notices.    All notices or other communications
required or permitted hereunder shall be given in writing and notice shall be
deemed to be given when personally delivered, upon deposit with an overnight
delivery service, upon facsimile or e-mail transmission (provided that any
facsimile transmission is also sent to the recipient on the same day by
overnight delivery service), or 48 hours after being deposited in U.S. mail as
certified or registered mail.

15.    Gender.    All pronouns and variations thereof used
in this Agreement shall be deemed to refer to the masculine, feminine or neuter
gender, singular or plural, as the identity of the person, persons, entity or
entities referred to may require.

IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and signed as of the date and year first above
written.

	
       

    	
      

      PICCADILLY CAFETERIAS, INC.

	
       
	
       
	
       

	
       
	
       
	
       

	
       
	
      By: 

    	
      
      

      /s/ Joseph H. Campbell, Jr.

      

    
	
       
	
       

    	
      

      Joseph H. Campbell, Jr.

	
       
	
       

    	
      

      Chairman of the Board

 

	
       

    	
      

      Indemnitee:

    
	
     

    

 

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