MANAGEMENT SECURITY PLANS(S)
|ARTICLE 1 Definitions
|ARTICLE 2 The Trust
|ARTICLE 4 Trustee Responsibility Regarding Payments to the Trust Beneficiary When the Company is Insolvent
5 Payments When a Shortfall of the Trust Assets Occurs
|ARTICLE 6 Payments to the Company
|ARTICLE 7 Investment Authority
|ARTICLE 8 Insurance Contracts
|ARTICLE 9 Accumulation of Income
|ARTICLE 10 Accounting by the Trustee
|ARTICLE 11 Responsibility of the Trustee
|ARTICLE 12 Compensation and Expenses of the Trustee
|ARTICLE 13 Resignation and Removal of the Trustee
|ARTICLE 14 Appointment of Successor
|ARTICLE 15 Amendment or Termination
|ARTICLE 16 Change in Control
|ARTICLE 17 Miscellaneous
|EXHIBIT A PLANS COVERED BY THE TRUST
MANAGEMENT SECURITY PLAN(S)
This Trust Agreement
(the “Trust Agreement”) is made this 24th day of February, 2004 (the “Effective Date”), by and
between Alico, Inc., a Florida corporation (the “Company”) and SunTrust Bank, (the “Trustee”) to evidence
the trust (the “Trust”) to be established pursuant to the Plan(s), for the benefit of a select group of management
or highly compensated employees who contribute materially to the continued growth, development and business success of the Company
and those subsidiaries of the Company, if any, that participate in the Plan(s) (collectively, “Subsidiaries,” or singularly,
Unless otherwise provided in this Trust
Agreement, the capitalized terms in this Trust Agreement shall have the same meaning as under the Plan(s). The following phrases
or terms shall have the following indicated meanings, unless otherwise clearly apparent from the context in this Trust Agreement:
|1.1||“Administrator” shall mean the party responsible for the administration
of the Trust, as described more fully in this Trust Agreement. Prior to a Change in Control, Administrator shall mean the Committee.
Upon and after a Change in Control, Administrator shall mean the Trustees, unless within 30 days of the Change in Control (i) the
Trustee, in its sole and absolute discretion, does not accept such responsibility; or (ii) the appointment of the Trustee is objected
to by the individual who, immediately prior to a Change in Control, was the Company’s Chief Executive Officer, or if not
so identified, the Company’s highest ranking officer (the “Ex-CEO”). If the Trustee is not appointed as Administrator
pursuant to (i) or (ii) above, the Administrator shall be an independent third party appointed by the Trustee and accepted by
the Ex-CEO within 30 days of the time it becomes evident that the Trustee will not be appointed as Administrator. In the event
that a party is not appointed as Administrator it accordance with the provisions above, the Administrator shall be the Committee,
as constituted prior to a Change in Control:
|1.2||“Board” shall mean the board of directors of the Company.
|1.3||“Change in Control” shall be deemed to occur if:
|(a)||Any “person” (as that term is used in Section
13 and 14(4)(2) of the Securities Exchange Act of 1934 (“Exchange Act”)) becomes the beneficial owner (as that term
is used in Section 13(d) of the Exchange Act), directly or indirectly, of fifty percent (50%) or more of the Company’s capital
stock entitled to vote in the election of directors;
|(b)||During any period of not more than two consecutive years, not
including any period prior to the adoption of the Plan(s), individuals who, at the beginning of such period constitute the
board of directors of the Company, and any new director (other than a director designated by a person who has entered into an
agreement with the Company to effect a transaction described in clause (a), (c), (d) or (e) of this Section 1.3) whose
election by the board of directors or nomination for election by the Company’s stockholders was approved by a vote of
at least three-fourths (3/4ths) of the directors then still in office, who either were directors at the beginning of the
period or whose election or nomination for election was previously so approved, cease for any reason to constitute at
least a majority thereof;
|(c)||The shareholders of the Company approve any consolidation
or merger of the Company, other than a consolidation or merger of the Company in which the holders of the common stock of
the Company immediately prior to the consolidation or merger hold more than fifty percent (50%) of the common stock
of the surviving corporation immediately after the consolidation or merger;
|(d)||The shareholders of the Company approve any plan or proposal
for the liquidation or dissolution of the Company; or
|(e)||The shareholders of the Company approve the sale or transfer
of all or substantially all of the assets of the Company to parties that are not within a “controlled group of corporations”
(as defined in Code Section 1563) in which the Company is a member.
|1.4||“Committee” shall mean a committee consisting of the Board or such committee
as the Board shall appoint to make certain trust related decisions described in this Trust Agreement.
|1.5||“Fund” shall mean the assets held by the Trustee pursuant to the terms
of this Trust Agreement and for the purposes of the Plan(s).
|1.6||“Plan(s)” shall mean (i) the Management Security Plan, effective August 1, 1990;
as it may be amended from time to time, and (ii) any successor executive deferral plans or other arrangements, identified in
Exhibit A of this Trust Agreement, that are (a) adopted by the Company within 18 months of the Effective Date of this
Trust Agreement, and (b) intended to apply to a select group of management or highly compensated employees, which is
comparable to the group identified in the plan or arrangement described in (i) above. The addition of any qualifying
successor plans or other arrangements in accordance with this Section 1.6, to Exhibit A of this Trust Agreement shall not
constitute or be deemed to be an amendment to this Trust Agreement under Section 15.1 below.
|2.1||The Trust is intended to be a Grantor Trust, of which the Company is the Grantor,
within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended,
and shall be construed accordingly.
|2.2||The Trust hereby established shall be irrevocable.
|2.3||Until a Change in Control occurs, the Committee shall direct the Trustee as
to the administration of this Trust in accordance with this Trust Agreement.
|2.4||The Company hereby deposits with the Trust in trust $100, which shall become the principal
of the Trust to be held, administered and disposed of by the Trustee as provided in this Trust Agreement.
|2.5||Except as otherwise provided in Section 3.3 and section 6.1, the principal of the
Trust, and any earnings thereon, shall be held separate and apart from other, funds of the Company and the Subsidiaries
and shall be used exclusively for the uses and purposes of Participants and general creditors of the Company and the Subsidiaries
as herein set forth. Participants and their Beneficiaries shall have no preferred claim on, or any beneficial ownership interest
in, any assets of the Trust. Any rights created under the Plan(s) and this Trust Agreement shall be mere unsecured contractual
rights of Participants and their Beneficiaries against the Company and the Subsidiaries. Any assets held by the Trust will be
subject to the claims of the Company’s and the Subsidiaries’ general
creditors under federal and state law in the event that the Company or a Subsidiary becomes Insolvent, as defined in Section 4.1
|2.6||In the event that the Company contributes authorized common shares (without par value),
or any other equity securities of the Company, to assist a Subsidiary in meeting the Subsidiary’s benefit obligations to
Participants and their Beneficiaries, the property contributed shall be subject to the claims of the general creditors of the
Company and the Subsidiary. Any such property not transferred to the Participants of the Subsidiary’s Plan(s), or their
Beneficiaries, will revert to the Company upon the termination of this Trust.
|2.7||The Company and their Subsidiaries, in their sole discretion, may at any time, or from time
to time, make additional deposits of cash or other property in trust to augment the principal to be held, administered and
disposed of by the Trustee as provided in this Trust Agreement. Neither the Trustee nor any Participant or Beneficiary
shall have any right to compel additional deposits, The Trustee shall have no duty to collect or enforce payment to it of
any contributions or to require that any
contributions be made, and shall have no duty to compute any amount to be paid to it nor
to determine whether amounts paid comply with the terms of the Plan(s).
any other provision of this Trust Agreement,
upon a Change in Control, the Company and the Subsidiaries
shall, as soon
as possible, but in no event more than thirty
(30) days following the effective date of a Change
in Control, as defined herein, make an irrevocable
contribution to the Trust in an amount that is sufficient
to fund the Trust at a level not less than 100%
of the amount necessary to pay each Participant
or Beneficiary the benefits to which Participants
or their Beneficiaries would be entitled pursuant
to the terms of the Plan(s) as of the effective
date of the Change in Control. At least annually
after the occurrence of a Change in Control, the
Company and. the Subsidiaries shall make an irrevocable
contribution to the Trust in an amount that is sufficient
to fund the Trust to pay any remaining benefits
to the Participants or Beneficiaries. For purposes
of calculating the amount of such deposit required
either upon a Change in Control or annually, the
Administrator shall determine, in its sole discretion,
the amount of the current and projected benefit
obligations and the current and projected administrative
expenses and shall determine the sufficiency
of the value of the existing assets of the Fund.
power to interpret the Plan(s), including, but not
limited to, the ability to make benefit entitlement
determinations, shall be exercised by the Administrator.
Any claim for benefits under the Plan(s) shall
be considered and reviewed under the procedures
set forth in the Plan(s).
the establishment of this Trust, the Company shall
deliver to the Trustee a schedule (the “Schedule”)
that indicates the amounts currently payable in
respect of each Participant (and his or her Beneficiaries)
on a Plan by Plan basis, specifies the form in which
such amount is to be paid (as provided for or available
under the applicable Plans), and the time of commencement
for payment of such amounts if known. The Schedule
shall be updated annually by the Company or its
designee; provided, however upon a Change it Control
and from time to time as is necessary thereafter,
the Administrator shall have, full authority
and responsibility to deliver a Schedule to the
Trustee. The Trustee shall make payments to
the Participants and their Beneficiaries in accordance
with the Schedule. The Trustee, at the direction
of the Committee or, after a Change in Control,
on its own volition, may make any distribution required
to be made by it hereunder by delivering:
|(a)||Its check payable to the person to whom such distribution
is to be made, to the person, or, if prior to a Change in Control, to the Company for redelivery to such person; provided that
before a Change in Control, the Committee may direct the Trustee to deliver one or more lump sum checks payable to the Company,
and the Company shall prepare and deliver individual checks for each Participant or Beneficiary; or
|(b)||Its check payable to an
insurer for the benefit of such person, to the insurer, or, if prior to a Change in Control, to the Company for redelivery to
the insurer; or
|(c)||Contracts held on the life of the Participant to whom
or with respect to whom the distribution is being made, to the Participant or Beneficiary, or, if prior to a Change
in Control, to the Company for redelivery to the person to whom such distribution is to be made; or
|(d)||If a distribution is being made, in whole or in part,
of other assets, assignments or other appropriate documents or certificates necessary to effect a transfer of title, to the Participant
or Beneficiary, or, if prior to a Change in Control, to the Company for redelivery to such person.
|3.3||The Company and the Subsidiaries may make payment of benefits directly to Participants or
their Beneficiaries as they become due under the terms of the Plan(s). The Company and the Subsidiaries shall notify the
Trustee of their decision to make payment of benefits directly prior to the time amounts are payable to Participants or their
Beneficiaries. In the event the Company and the Subsidiaries provide such notification to the Trustee in writing at least
seven (7) days prior to date on which the Company and Subsidiaries make payment of benefits directly to Participants or their
Beneficiaries, the Company and Subsidiaries may also request, in such written notification; a concurrent reimbursement from
the Fund equal to the amount paid directly to the Participant or Beneficiaries. Upon the Trustee’s approval of such
written notification, the Trustee shall make a reimbursement payment to the Company and/or Subsidiaries. In addition, if the
principal of the Trust, and any earnings thereon, are not sufficient to make payments of benefits in accordance with the
terms of the Plan(s), the Company and the Subsidiaries shall pay the balance of each such payment as it falls due in
accordance with the Plan(s). The Trustee shall notify the Company and the Subsidiaries if principal and earnings are not
sufficient to make benefit payments. Nothing in this Agreement shall relieve the Company or the Subsidiaries of their
liabilities to pay benefits due under the Plan(s) or fees and expenses of the Trust, except to the extent such liabilities
are met by application of assets of the Trust.
|3.4||If, for any reason,
all or any portion of a Participant’s or a Beneficiary’s benefit under a Plan becomes taxable to the Participant or
Beneficiary prior to receipt, the Participant or Beneficiary may petition the Committee before a Change in Control, or may petition
the Administrator upon and after a Change in Control, for a distribution of that portion of his or her benefit that has become
taxable. Upon the grant of such petition, which grant shall not be unreasonably withheld, an amount equal to the taxable portion
of his or her benefit (which amount shall not exceed a Participant’s or Beneficiary’s unpaid vested benefit
under the Plan(s)) shall be distributed by the Trustee. If the petition is granted, the tax liability distribution shall
be made as of the first business day of the month that begins at least thirty (30) days after the date when the Participant’s
or Beneficiary’s petition is granted. Such a distribution shall reduce, dollar for dollar, the Participant’s or Beneficiary’s
benefits otherwise due under the Plan(s).
|3.5||Except following a Change in Control, the Trustee shall withhold payments pursuant
to a Plan if the Company or a Subsidiary instructs the Trustee to withhold such payments until the Company or Subsidiary determines
the proper Beneficiary to receive such payments.
Trustee Responsibility Regarding Payments to the Trust Beneficiary When the Company is Insolvent
|4.1||The Trustee shall cease payment of benefits to Participants and their Beneficiaries
if the Company or Subsidiary is insolvent. The Company or Subsidiary shall be considered “Insolvent” for purposes of
this Trust Agreement if (i) the Company or Subsidiary is unable to pay its debts as they become due, or (ii) the Company or Subsidiary
is subject to a pending proceeding as a debtor under the United States Bankruptcy Code.
|4.2||At all times during the continuance of this Trust, the principal and income of the
Trust shall be subject to claims of general creditors of the Company and the Subsidiaries under federal and state law as set forth
|(a)||The Board and the Chief Executive Officer of the Company
shall have the duty to inform the Trustee in writing that the Company or the Subsidiary is Insolvent. If a person claiming to
be a creditor of the Company or the Subsidiary alleges in writing to the Trustee that the Company or Subsidiary has become Insolvent,
the Trustee shall determine whether the Company or Subsidiary is Insolvent and, pending such determination, the Trustee
shall discontinue payment of benefits to Participants or their Beneficiaries.
|(b)||Unless the Trustee has actual knowledge that the Company
or Subsidiary is Insolvent, or has received notice from the Company or Subsidiary or a person claiming to be a creditor alleging
that the Company or Subsidiary is Insolvent, the Trustee shall have no duty to inquire whether the Company or Subsidiary is Insolvent.
The Trustee may in all events rely on such evidence concerning the Company’s or Subsidiary’s solvency as may be furnished to the
Trustee and that provides the Trustee with a reasonable basis for making a determination concerning the Company’s or Subsidiary’s
solvency. In this regard, the Trustee may rely upon a letter from the Company’s or Subsidiary’s auditors as to the Company’s or
Subsidiary’s financial status.
|(c)||If at any time the Trustee has determined that the Company or Subsidiary is Insolvent the
Trustee shall discontinue payments to Participants or their Beneficiaries and shall hold the assets of the Trust for the
benefit of the Company’s or Subsidiary’s general creditors. Nothing in this Trust Agreement shall in any way
diminish any rights of Participants or their Beneficiaries to pursue their rights as general creditors of the Company or
Subsidiary with respect to benefits due under the Plan(s) or otherwise.
|(d)||The Trustee shall resume the payment of benefits to Participants
or their Beneficiaries in accordance with Article 3 of this Trust Agreement only after the Trustee has determined that the Company
or Subsidiary is not Insolvent (or is no longer Insolvent).
|4.3||Provided that there are sufficient assets, if the Trustee discontinues the payment
of benefits from the Trust pursuant to Section 4.2 hereof and subsequently resumes such payments, the first payment following
such discontinuance shall include the aggregate amount of all payments due to Participants or their Beneficiaries under the terms
of the Plan(s) for the period of such discontinuance, plus earnings (if any) on amounts not paid during the period of such discontinuance,
less the aggregate amount of any payments made to Participants or their Beneficiaries by the Company or any Subsidiary in lieu
of the payments provided for hereunder during any such period of discontinuance. In accordance with the terms and provisions of
the Plan(s), prior to a Change in Control, the Committee shall instruct the Trustee as to such amounts, and after a Change in
Control, the Administrator shall determine such amounts.
Payments When a Shortfall of the Trust Assets Occurs
|5.1||Upon and after a Change in Control, if there are not sufficient assets for the payment
of benefits pursuant to Article 2 or Section 4.3 hereof and the Company or a Subsidiary does not otherwise make such payments
within a reasonable time after demand from the Administrator, the Trustee shall make payment of benefits from the Trust to the
Participants or their Beneficiaries in the same percentage in which all future benefits under the Trust are currently funded at
the time of the payment.
|5.2||Upon receipt of a contribution from the Company or a Subsidiary necessary to make
up for a shortfall in the payments due, the Trustee shall resume payments to all the Participants and Beneficiaries under the
Payments to the Company
|6.1||In the event that the Committee, prior to a Change in Control, or the Administrator,
after a Change in Control, determines that the Fund exceeds 125% of the current and projected benefit obligations and the current
and projected administrative expenses that are to be paid under the Plan(s), the Trustee, at the direction of the Committee,
prior to a Change in Control, or the Administrator, after a Change in Control, shall distribute to the Company and the Subsidiaries
such excess portion of the Fund.
|7.l||The Trustee shall not be liable in discharging its duties hereunder, including without
limitation its duty to invest and reinvest the assets of the Trust, if it acts for the exclusive benefit of the Participants and
their Beneficiaries, in good faith and as a prudent person familiar with such matters would act in accomplishing a similar task
and in accordance with the terms of this Trust Agreement and any applicable federal or state laws, rules or regulations.
|7.2||Subject to investment guidelines agreed to in writing from time to time by the Committee
and the Trustee prior to a Change in Control, the Trustee shall have the power in investing and reinvesting the Fund in its sole
|(a)||To invest and reinvest in any readily marketable common
and preferred stocks, bonds, notes, debentures (including. convertible stocks and securities but not including any
stock or security of the Trustee other than a de minimis amount held in a mutual fund), certificates of deposit or demand or time
deposits (including any such deposits with the Trustee) and shares of investment companies and Mutual Funds, without being limited
to the classes or property in which the Trustees are authorized to invest by any law or any rule of court of any state and without
regard to the proportion any such property may bear to the entire amount of the Fund. Without limitation, the Trustee may invest
the Trust in any investment company or, any insurance contract or contracts issued by an insurance company or companies in each
case as the Trustee may determine provided that the Trustee may in its sole discretion keep such portion of the Trust in cash
or cash balances for such reasonable periods as may from time to time be deemed advisable pending investment or in order to meet
contemplated payments of benefits. The Trustee may invest in securities (including stock or rights to acquire stock) or obligations
issued by the Company or any Subsidiary. All rights associated with assets of the Trust shall be exercised by the Trustee or the
person designated by the Trustee, and shall in no event be exercisable by or rest with Participants or Beneficiaries;
|(b)||To commingle for investment purposes, upon direction of
the Company, all or any portion of the Fund with assets of any other similar trust or trusts established by the Company with the
Trustee for the purpose of safeguarding deferred compensation or retirement income benefits of its employees and/or directors;
|(c)||To retain any property at any time received by the Trustee;
|(d)||To sell or exchange any property held by it at public
or private sale, for cash or on credit, to grant and exercise options for the purchase or exchange thereof, to exercise all conversion
or subscription rights pertaining to any such property and to enter into any covenant or agreement to purchase any property in
|(e)||To participate in any plan of reorganization, consolidation,
merger, combination, liquidation or other similar plan relating to property held by it and to consent to or oppose any such plan
or any action thereunder or any contract, lease, mortgage, purchase, sale or other action by any person;
|(f)||To deposit any property held by it with any protective,
reorganization or similar committee, to delegate discretionary power thereto, and to pay part of the expenses and
compensation thereof any assessments levied with respect to any such property deposited;
|(g)||To extend the time of payment of any obligation held by
|(h)||To hold uninvested any moneys received by it, without
liability for interest thereon, but only in anticipation of payments due for investments, reinvestments, expenses or disbursements;
|(i)||To exercise all voting or other rights with respect to
any property held by it and to grant proxies, discretionary or otherwise;
|(j)||For the purposes of the Trust, to borrow money from others,
to issue its promissory note or notes therefor, and to secure the repayment thereof by pledging any property held by it;
|(k)||To employ suitable contractors and counsel, who may be
counsel to the Company or a Subsidiary or to the Trustee, and to pay their reasonable expenses and compensation from the Fund
to the extent not paid by the Company or Subsidiary;
|(l)||To register investments in its own name or in the name
of a nominee; to hold any investment in bearer form; and to combine certificates representing securities with certificates of
the same issue held by it in other fiduciary capacities or to deposit or to arrange for the deposit of such securities with any
depository, even though, when so deposited, such securities may be held in the name of the nominee of such depository with other
securities deposited therewith by other persons, or to deposit or to arrange for the deposit of any securities issued or guaranteed
by the United States government, or any agency or instrumentality thereof, including securities evidenced by book entries rather
than by certificates, with the United States Department of the Treasury or a Federal Reserve Bank, even though when so deposited,
such securities may not be held separate from securities deposited therein by other persons; provided, however, that no securities
held in the Fund shall be deposited with the United States Department of the Treasury or a Federal Reserve Bank or other depository
in the same account as any individual property of the Trustee, and provided, further, that the books and records of the Trustee
shall at all times show that all such securities are part of the Fund;
|(m)||To settle, compromise or submit to arbitration any claims,
debts or damages due or owing to or from the Trust, respectively, to commence or defend suits or legal proceedings to protect
any interest of the Trust, and to represent the Trust in all suits or legal proceedings in any court or before any other body
or tribunal; provided, however, that the Trustee shall not be required to take any such action unless it shall have been indemnified
by the Company to its reasonable satisfaction against liability or expenses it might incur therefrom;
|(n)||Subject to Article 8, to hold and retain policies of life
insurance, annuity contracts, and other property of any kind which policies are contributed to the Trust by the Company or any
Subsidiary or are purchased by the Trustee;
|(o)||To hold any other class of assets which may be contributed
by the Company or any Subsidiary and that is deemed reasonable by the Trustee, unless expressly prohibited herein;
|(p)||Generally, to do all acts, whether or not expressly authorized,
that the Trustee may deem necessary or desirable for the protection of the Fund.
|7.3||Prior to a Change in Control, the Committee shall have the right to direct the Trustee
with respect to investments. After a Change in Control, the Administrator shall have the right to direct the Trustee with respect
|7.4||Absent direction from the Committee or the Administrator as described Section 7.3,
the Trustee shall direct the management of the Trust assets and shall have all the powers set forth under Section 7.2. In investing
the Trust assets, the Trustee shall consider:
|(i)||the needs of the Plan(s);
|(ii)||the need for matching of the Trust assets with the liabilities
of the Plan(s); and
|(iii)||the duty of the Trustee to act solely in the best interests
of the Participants and their Beneficiaries.
|7.5||The Company and/or any Subsidiary shall have the right at any time, and from time
to time in its sole discretion, to substitute assets (other than securities issued by the Trustee or the Company or the Subsidiary)
of equal fair market value for any asset held by the Trust. This right is exercisable by the Company and/or any Subsidiary in
a nonfiduciary capacity without the approval or consent of any person in a fiduciary capacity. Following a Change in Control,
such substitution of assets is subject to the acceptance of the Trustee.
|8.1||To the extent that the Trustee is directed by the Company prior to a Change in Control,
or by the Administrator after a Change in Control, to invest part or all of the Fund in insurance contracts, the type and amount
thereof shall be specified by the Committee or the Administrator, as appropriate. The Trustee shall be under no duty to make inquiry
as to the propriety of the type or amount so specified.
|8.2||Each insurance contract issued shall provide that the Trustee shall be the owner thereof
with the power to exercise all rights, privileges, options and elections granted by or permitted under such contract or under
the rules of the insurer. The exercise by the Trustee of any incidents of ownership under any contract shall, prior to a Change
in Control, be subject to the direction of the Committee, and after a Change in Control, be subject to the direction of the Administrator.
|8.3||The Trustee shall have no power to name a beneficiary of the policy other than the
Trust, to assign the policy (as distinct from conversion of the policy to a different form) other than to a successor Trustee,
or to loan to any person the proceeds of any borrowing against an insurance policy held in the Trust. Despite the foregoing,
the Trustee may (i) loan to the Company or any Subsidiary the proceeds of any borrowing against an insurance policy held in Trust
or (ii) assign all, or any portion, of a policy to the Company or any Subsidiary if under other provisions of this Trust Agreement
the Company or any Subsidiary is entitled to receive assets from the Trust.
|8.4||No insurer shall be deemed to be a party to the Trust and an insurer's obligations
shall be measured and determined solely by the terms of contracts and other agreements executed by the insurer.
Accumulation of Income
|9.1||All income received by the Trust, net of expenses and taxes, shall be accumulated
and reinvested within the Trust.
Accounting by the Trustee
|10.1||The Trustee shall keep accurate and detailed records of all investments, receipts,
disbursements, and all other transactions required to be made, including such specific records as shall be agreed upon in writing
between the Committee and the Trustee. Within sixty (60) days following the close of each calendar year and within sixty (60)
days after the removal or resignation of the Trustee, the Trustee shall deliver to the Company and Subsidiaries a written account
of its administration of the Trust during such year or during the period from the close of the last preceding year to the date
of such removal or resignation setting forth all investments, receipts, disbursements and other transactions effected by it, including
a description of all securities and investments purchased and sold with the cost or net proceeds of such purchases or sales (accrued
interest paid or receivable being shown separately), and showing all cash, securities and other property held in the Trust at
the end of such year or as of the date of such removal or resignation, as the case may be.
|10.2||The Committee may approve the written account described in the preceding paragraph
by a written instrument delivered to the Trustee. In the absence of the Committee’s filing with the Trustee of objections to any
such account within ninety (90) days after its receipt, the Committee shall be deemed to have so approved such account. In such
case, or upon the written approval by the Committee of any such account, the Trustee shall, to the extent permitted by law, be
discharged from all liability to the Company and Subsidiaries for its acts or failures to act described by such account. The foregoing,
however, shall not preclude the Trustee from having its accounting settled by a court of competent jurisdiction. The Trustee shall
be entitled to hold and to commingle the assets of the Trust in one fund for investment purposes but at the direction of the Committee
prior to a Change in Control, or at the direction of the Administrator after a Change in Control, the Trustee shall create one
or more sub-accounts.
Responsibility of the Trustee
|11.1||The Trustee shall act with the care, skill, prudence and
diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and with likes aims, provided, however, that the Trustee shall incur
no liability to any person for any action taken pursuant to a direction, request or approval that is contemplated by, and in conformity
with, the terms of a Plan or this Trust and is given in writing by the Committee, or the Administrator, as required pursuant to
this Agreement. In the event of a dispute between the Company or Subsidiary and a party, the Trustee may apply to a court of competent
jurisdiction to resolve the dispute.
|11.2||The Company and Subsidiaries hereby indemnify the Trustee
against losses, liabilities, claims, costs and expenses in connection with the administration of the Trust, unless resulting from
the negligence or willful misconduct of Trustee. If the Trustee undertakes or defends any litigation arising in connection with
this Trust or to protect a Participant’s or Beneficiary’s rights under a Plan, the Company and Subsidiaries agree
to indemnify the Trustee against the Trustee’s costs, reasonable expenses and liabilities (including, without limitation,
attorneys’ fees and expenses) relating thereto and to be primarily liable for such payments. The indemnity described in
this Section 11.2 shall be provided by the Company and the Subsidiaries.
|11.3||The Trustee shall indemnify and hold harmless the Company
and the Subsidiaries for any damages or costs (including attorneys’ fees) that may be incurred in the event that the Trustee
fails to timely perform its duties as required by this Trust Agreement.
|11.4||Prior to a Change in Control, the Trustee may consult with
legal counsel (who may also be counsel for the Company generally) with respect to any of its duties or obligations hereunder.
Following a Change in Control, the Trustee may select independent legal counsel and may consult with counsel or other experts
with respect to its duties and with respect to the rights of Participants or their Beneficiaries under the Plan(s).
|11.5||The Trustee may hire agents, accountants, actuaries, investment
advisors, financial consultants or other professionals to assist it in performing any of its duties or obligations hereunder and
may rely on any determinations made by such agents and information provided to it by the Company and Subsidiaries.
|11.6||The Trustee shall have, without exclusion, all powers conferred
on the Trustee by applicable law, unless expressly provided otherwise herein.
|11.7||Notwithstanding any powers granted to the Trustee pursuant
to this Trust Agreement or to applicable law, the, Trustee shall not have any
power that could give this Trust the objective of carrying on a business and dividing the gains therefrom, within the meaning
of section 301.7701-2 of the Procedure and Administrative Regulations promulgated pursuant to the Internal Revenue Code.
Compensation and Expenses of the Trustee
|12.1||The Trustee shall be entitled to reasonable compensation
for its services as from time to time agreed upon in writing by the Company and the Trustee. Following a Change in Control, if
the Trustee and the Company fail to agree upon reasonable compensation, the Trustee shall be entitled to compensation at a rate
equal to the rate charged by the Trustee for similar services rendered by it during the current fiscal year for other trusts similar
to this Trust. The Trustee shall be entitled to reimbursement for expenses incurred by it in the performance of its duties as
Trustee, including reasonable fees for legal counsel. The Trustee’s compensation and expenses shall be paid by the Company
and Subsidiaries. If not so paid, the fees and expenses shall be paid from the Trust.
Resignation and Removal of the Trustee
|13.3||Prior to a Change in Control, the Trustee may resign at any
time by written notice to the Company, which shall be effective sixty (60) days after receipt of such notice unless the Company
and the Trustee agree otherwise. Following a Change in Control, the Trustee may resign only after the appointment of a successor
|13.2||The Trustee may be removed by the Company on sixty days (60)
days notice or upon shorter notice accepted by the Trustee.
|13.3||If the Trustee resigns or is removed, and a successor Trustee
is not appointed within a reasonable period of time following such resignation or removal, the Trustee shall apply, at the expense
of the Company, to a court of competent jurisdiction for the appointment of a successor Trustee or for instructions. All expenses
of the Trustee in connection with the proceeding shall be allowed as administrative expenses of the Trust.
|13.4||Upon resignation or removal of the Trustee and appointment
of a successor Trustee, all assets shall subsequently be transferred to the successor Trustee. The transfer shall be completed
within sixty (60) days after receipt of acceptance of an appointment as trustee by a successor trustee, unless the Company extends
the time limit.
Appointment of Successor
|14.1||If the Trustee resigns or is removed in accordance with Section
13.1 or 13.2 hereof, the Administrator may appoint, subject to Section 13.3 hereof, a successor trustee in accordance with this
Section 14.1. The successor shall be a bank, trust company or similar independent third party that is granted corporate trustee
powers under state or federal law. The successor Trustee shall have all of the rights and powers of the former Trustee, including
ownership rights in the Trust. The former Trustee shall execute any instrument necessary or reasonably requested by the Company
or the successor Trustee to evidence the transfer.
|14.2||The successor Trustee need not examine the records and acts
of any prior Trustee and may retain or dispose of existing Trust assets, subject to Articles 9 and 10 hereof. The successor Trustee
shall not be responsible for, and the Company and the Subsidiaries shall indemnify and defend the successor Trustee from,
any claim or liability resulting from any action or inaction of any prior Trustee or from any other past event, or any condition
existing at the time it becomes successor Trustee.
Amendment or Termination
|15.1||Subject to the limitations set forth in this Section 15.1,
this Trust Agreement may be amended by a written instrument executed by the Trustee and the Company. Notwithstanding the foregoing,
no such amendment shall conflict with the terms of the Plan(s) or shall make the Trust revocable. Any amendment, change or modification
to this Trust Agreement shall be subject to the following rules:
|(a)||General Rule. Subject to Sections 15.1(b), (c)
and (d) below, this Trust Agreement may be amended:
|(i)||By the Company and the Trustee, provided, however, that
if an amendment would in any way reduce the value of the Participants’ benefits under the Plans, a majority of the Participants
and Beneficiaries whose benefits would be reduced must consent to the amendment before this Trust Agreement may be so amended;
|(ii)||By the Company and the Trustee as may be necessary to
comply with laws which would otherwise render the Trust void, voidable or invalid in whole or in part.
|(b)||Limitation. Notwithstanding that an amendment may
be permissible under Section 15.1(a) above, this Trust Agreement shall not be amended by an amendment that would:
|(i)||Cause any of the assets of the Trust to be used for or
diverted to purposes other than for the exclusive benefit of Participants and Beneficiaries as set forth in the Plan(s), or payment
of expenses of the Trust, except as is required to satisfy the claims of the Company’s or a Subsidiary’s general creditors
or as provided in Section 3.3 and Section 6.1; or
|(ii)||Be inconsistent with the terms of any Plan, including
the terms of any Plan regarding termination, amendment or modification of the Plan(s); or
|(iii)||Change the definition of Administrator or terminate the
|(c)||Writing and Consent. Any amendment to this Trust
Agreement shall be set forth in writing and signed by the Company and the Trustee and, if consent of any Participant or Beneficiary
is required under Section 15.1(a)(i), the Participant or Beneficiary whose consent is required. Any amendment may be current, retroactive
or prospective, in each case as provided therein.
|(d)||The Company and Trustee. In connection with the
exercise of the rights under this Section 15.1:
|(i)||prior to a Change in Control, the Trustee shall be responsible
for determining whether any proposed amendment complies with the terms and conditions set forth in Sections 15.1(a) and 15.1(b)
above and may conclusively rely on the directions of the Administrator with respect thereto, unless the Trustee has knowledge
of a proposed transaction or transactions that would result in a Change in Control; and
|(ii)||after a Change in Control, the power of the Company to
amend this Trust Agreement shall cease, and the power to amend that was previously held by the Company shall, instead, be exercised
by a majority of the Participants and, if a Participant is dead, his or her Beneficiaries (who collectively shall have one vote
among them and shall vote in place of such deceased Participant), with the consent of the Administrator, provided that such amendment
otherwise complies with the requirements of Sections 15.1(a), (b) and (c) above.
|(e)||Taxation. This Trust Agreement shall not be amended,
altered, changed or modified in a manner that would cause the Participants and/or Beneficiaries under any Plan to be taxed on
the benefits under any Plan in a year other than the year of actual receipt of benefits.
|(f)||Addition of Successor Plan not an Amendment. Notwithstanding the foregoing, the
addition of any successor plans or other arrangements in accordance with Section 1.6, to Exhibit A of the Trust Agreement,
shall not constitute or be deemed to be an amendment to this Trust Agreement.
|15.2||The Trust shall not terminate until the date on which Participants
and their Beneficiaries are no longer entitled to benefits pursuant to the terms of the Plan(s) and all of the expenses of the
Trust have been paid, and on such date the Trust shall terminate. Upon termination of the Trust, any assets remaining in the Trust
shall be returned to the Company and the Subsidiaries; provided, however, any Company common stock remaining in the Trust shall
be returned directly to the Company. Such remaining assets shall be paid by the Trustee to the Company and the Subsidiaries in
such amounts and in the manner instructed by the Company, whereupon the Trustee shall be released and discharged from all obligations
hereunder. From and after the date of termination and until final distribution of the Fund, the Trustee shall continue to have
all of the powers provided herein as are necessary or expedient for the orderly liquidation and distribution of the Fund.
Change in Control
|16.1||The Administrator shall have the specific authority to determine
whether a Change in Control has occurred and shall be required to give the Trustee notice of a Change in Control. The Trustee
shall be entitled to rely upon such notice. If the Trustee receives notice of a Change in Control from another source or if a
Participant or a Beneficiary requests a determination as to whether a Change in Control has occurred, the Trustee shall make its
own independent determination as to whether a Change in Control has occurred.
|17.1||The Company and the Subsidiaries shall from time to time
pay taxes of any and all kinds whatsoever that at any time are lawfully levied or assessed upon or become payable in respect of
the Fund, the income or any property forming a part thereof, or any security transaction pertaining thereto. To the extent
that any taxes lawfully levied or assessed upon the Fund are not paid by the Company and the Subsidiaries, the Trustee shall have
the power to pay such taxes out of the Fund and shall seek reimbursement from the Company and the Subsidiaries. Prior to making
any payment, the Trustee may require such releases or other documents from any lawful taxing authority as it shall deem necessary.
The Trustee shall contest the validity of taxes in any manner deemed appropriate by the Company or its counsel, but at the Company’s
and the Subsidiaries’ expense, and only if it has received an indemnity bond or other security satisfactory to it to pay
any such expenses. Prior to a Change in Control, the Trustee (i) shall not be liable for any nonpayment of tax when it distributes
an interest hereunder on directions from the Committee, and (ii) shall have no obligation to prepare or file any tax return on
behalf of the Fund, any such return being the sole responsibility of the Committee. The Trustee shall cooperate with the Committee
in connection with the preparation and filing of any such return. After a Change in Control, the Trustee shall have such duties
|17.2||All persons dealing with the Trustee are released from inquiring
into the decisions or authority of the Trustee and from seeing to the application of any moneys, securities or other property
paid or delivered to the Trustee.
|17.3||This Trust Agreement shall be binding upon and inure to the
benefit of the Company, the Subsidiaries and the Trustee and their respective successors and assigns.
|17.4||The Company and the Subsidiaries are the true beneficiaries
hereunder in that the payment of benefits, directly or indirectly to or for a Participant or Beneficiary by the Trustee, is in
satisfaction of the Company’s and the Subsidiaries liability therefore under the Plan(s). Nothing in this Trust Agreement
shall establish any beneficial interest in any person other than the Company and the Subsidiaries.
|17.5||This Trust, the Plan(s) and each Participant’s Plan
Agreement are part of and constitute a single, integrated employee benefit plan and trust, shall be construed together as the
entire agreement between the Company, the Trustee, the Participants and the Beneficiaries with regard to the subject matter thereof,
and shall supersede all previous negotiations, agreements and commitments with respect thereto.
|17.6||Any provision of this Trust Agreement prohibited by law shall
be ineffective to the extent of any such prohibition, without invalidating the remaining provisions hereof.
|17.7||The Company hereby represents and warrants that each of the
Plan(s) has been established, maintained and administered in material compliance with all applicable laws. The Company hereby
indemnifies and agrees to hold the Trustee harmless from all liabilities, including attorney’s fees, relating to or arising
out of the establishment, maintenance and administration of the Plan(s). To the extent the Company does not pay any of such liabilities
in a reasonably timely manner, the Trustee may obtain payment from the Trust.
|17.8||Benefits payable to participants and their Beneficiaries
under this Trust Agreement may not be anticipated, assigned (either at law or in equity), alienated, pledged, encumbered or subjected
to attachment, garnishment, levy, execution or other legal or equitable process.
|17.9||Except to the extent, if any, preempted by ERISA, this Trust
Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida without reference to
any conflicts of laws principals. Any provision of this Trust Agreement prohibited by law shall be ineffective to the extent of
any such prohibition, without invalidating the remaining provisions hereof.
IN WITNESS WHEREOF, this Trust Agreement
has been executed on behalf of the parties hereto and is effective as of the Effective Date.
||/s/ David Sharpe|
SHARPE, SENIOR VICE PRESIDENT, TRUST ADMINISTRATOR|
COMPANY: ALICO, INC., a Florida Corporation|
||/s/ Ben Hill Griffin, III|
HILL GRIFFIN, III, CHAIRMAN OF THE BOARD AND CEO|
PLANS COVERED BY THE TRUST
|1.||Management Security Plan, effective August 1, 1990, as
it may be amended from time to time
AMENDMENT 1 TO ALICO, INC. MANAGEMENT
SECURITY PLAN(S) TRUST AGREEMENT DATED FEBRUARY 24, 2004
This Amendment to Trust Agreement is
made this 10th day of January, 2006, by and between Alico, Inc., Florida corporation (the “Company”) and
SunTrust Bank (the “Trustee”).
W I T N E S S E T H:
WHEREAS, the Company
desires to amend the Trust Agreement in accordance with the powers granted by the provisions of Section 15.1(a)(i) of the Trust
in order to change the percentage threshold in the definition of Change of Control from fifty percent (50%) to sixty percent (60%);
WHEREAS, the Amendment
will not reduce the value of the participants’ benefits under the Plan.
NOW, THEREFORE, the parties hereto agree
1. Section 1.3(a)
of Article 1 of the Trust relating to the definition of a “Change of Control” is hereby amended by changing the reference
to “fifty percent (50%)” contained therein to “sixty percent (60%)”.
2. Except as set forth above, all
provisions of the Trust Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have
executed this Amendment to Trust Agreement the day and year first above written.