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02/15/2011 4 PENSION TRUSTEES AGENDA Location: Council Chambers - City Hall Date: 2/15/2011- 8:30 AM 1. Call to Order 2. Approval of Minutes 2.1 Approve the minutes of the January 11, 2011 Pension Trustees meeting as submitted in written summation by the City Clerk. Attachments 3. Pension Trustee Items 3.1 Approve new hires for acceptance into the Pension Plan as listed. Attachments 3.2 Approve the requests of employees Deborah Lutz, Engineering Department, and Thomas Allegretti, Fire Department, for regular pensions as provided by Sections 2.397 and 2.398 of the Employees' Pension Plan. Attachments 3.3 Approve the request of employee Jack Bryant, Marine and Aviation Department, to vest his pension as provided by Section 2.397 of the Employees' Pension Plan. Attachments 3.4 Approve agreements hiring Hancock Timber Resource Group and the Molpus Woodlands Group as timber investment managers for the pension plan and authorize the appropriate officials to execute the same. Attachments 4. Other Business 5. Adjourn Meeting Date:2/15/2011 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the minutes of the January 11, 2011 Pension Trustees meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: Cover Memo Item # 1 Attachment number 1 Page 1 of 4 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER January 11, 2011 Present: Chair/Trustee Frank Hibbard, Trustee George N. Cretekos, Trustee John Doran, Trustee Paul Gibson, and Trustee Bill Jonson. Also William B. Horne II - City Manager, Jill S. Silverboard - Assistant City present: Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, and Karen - Vaughan - Administrative Analyst. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Unapproved Trustee John Doran moved to approve the minutes of the December 13, 2010 Pension Trustees meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Pension Trustee Items 3.1 Approve new hires for acceptant into Pension Ian as listed and recommended by the Pension Advisorv Committee. ension Name, Job. Class, & ept./Div. ire Date King, Administrative Analyst/Parks & 11/15/10 Pension Elig. Date 11/15/10 Pension Trustee 2011-01-11 Item #11 Attachment number 1 Page 2 of 4 Raymond Croze, Police 10/25/10 10/25/10 Officer/Police Jason Slaughter, SW Equip. Oper./Solid 11/8/10 11/8/10 Waste/Gen. Ser. Horace Purifoy, Public Utilities Technician I/Public 11/9/10 11/9/10 Utilities Ashley Bailey, SW Worker/Solid Waste/General 11/8/10 11/8/10 Services Kyle Clark, Public Utilities Technician l/Public 11/8/10 11/8/10 Utilities Ernesto Rodriguez, SW Equip. Oper./Solid 11/8/10 11/8/10 Waste/Gen. Ser. Chaddrick Cann, SW Equip. Oper./Solid 11/8/10 11/8/10 Waste/Gen. Ser. Martin Lindemann, SWWorker/Solid Waste/Gen. 11/8/10 11/8/10* Services Robert McAnally, Fleet Mechanic/Solid 11/8/10 11/8/10 Waste/General Ser. Leonardo Aragones, Fleet Mechanic/Solid 11/8/10 11/8/10 Waste/Gen. Ser. Kevin Wylie, Public Utilities Technician I/Public 11/8/10 11/8/10 Utilities Eric Pickford, Public Utilities Technician I/Public 11/8/10 11/8/10 Utilities Brandi Montgomery, SW Equip. Oper./SW/Gen. 10/25/10 10/25/10 Ser. Joseph Czop, Police ...................... 10/25/10 10/25/10 Officer/Police Maria Pita, Police ........... 10/25/10 10/25/10 Officer/Police Ronald Hayes, Gas Technician 10/25/10 10/25/10 I/Gas Todd LaBrecque, Warehouse Clerk/Solid 10/25/10 10/25/10 `Waste/Gen. Ser. Mike Mailles, Gas Technician 10/25/10 10/25/10 1/Gas Ralph Shaw, Recreation Programmer/Parks & 4/3/10 10/24/10 ** Recreation Alan Tyler, Gas Technician 10/25/10 10/25/10 /Gas Paul Thompson, Field Service 11/22/10 11/22/10 Representative/Gust. Service Celia Wilcox, Field Service Representative/Gust. 11/22/10 11/22/10 Pension Trustee 2011-01-11 Item #21 Attachment number 1 Page 3 of 4 Service Brian Palmer, Public Utilities Technician I/Public 10/26/10 10/26/10 Utilities Originally hired as temporary on 8/10/10; transferred to full-time and pension eligible as of 11/8/10 "Originally hired as part-time on 4/3/10; promoted and pension eligible as of 10/25/10 Trustee George N. Cretekos moved to approve new hires for acceptance into Pension Plan as listed and recommended by the Pension Advisory Committee. The motion was duly seconded and carried unanimously. 3.2 Approve the r u sts of ploy s Jo Ilyn Kin 9 arks and Recreation apart nt, and onal ssl r, ulic Utilities Department , for regular pensions as provided y Sections 2.397 and 2.398 of the Employees Pension Plan and recommended by the Pension Advisory Committee. Jo Ellyn King, Parks Service Supervisor I, Parks and Recreation Department, was employed by the City on November 10, 1980, and her pension service credit is effective on that date. Her pension will be effective January 1, 2011. Based on an average salary of approximately $50,483 per year over the past five years, the formula for computing regular pensions, and Ms. King's selection of the Life Annuity, this pension will approximate $44,490 annually. Ronald Nessler, Wastewater Treatment Plant Operator A, Public Utilities Department, was employed by the City on July 10, 1980, and his pension service credit is effective on that date. His pension will be effective January 1, 2011. Based on an average salary of approximately $68,862 per year over the past five years, the formula for computing regular pensions, and Mr. Nessler's selection of the Joint and Survivor Annuity, this pension will approximate $57,710 annually. Section 2.397 provides for normal retirement eligibility when a participant has completed thirty years of credited service, has reached age 55 and completed twenty years of credited service, or has reached age 65 and completed ten years of credited service. Ms. King and Mr. Nessler qualify under the 30 years of service criteria. Trustee Paul Gibson moved to approve the requests of employees Jo Ellyn King, Parks and Recreation Department, and Ronald Nessler, Public Utilities Department, for regular pensions as provided by Sections 2.397 and 2.398 of the Employees Pension Plan and recommended by the Pension Advisory Committee. The motion was duly seconded and carried unanimously. Pension Trustee 2011-01-11 Item #31 Attachment number 1 Page 4 of 4 3.3 Approve the r u st of ploy lad n i lar to vest his pension as provided y Section 2.397 of the Employees Pension Ian and recommended y the Pension Advisory Commit ee. Mladen Zdjelar, Network Analyst, Information Technology Department, was employed by the City on June 12, 1995 and began participating in the Pension Plan on that date. Mr. Zdjelar terminated from City employment on December 3, 2010. The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater or change status from full-time to part-time after completing ten or more years of creditable service (pension participation), such employee shall acquire a vested interest in the retirement benefits. Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Section 2.397 provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of credited service, has completed 30 years of credited service, or has reached age 65 and completed ten years of credited service. Mr. Zdjelar would have completed 20 years of service and reached age 55 on June 12, 2015. His pension will be effective July 1, 2015. Trustee Bill Jonson moved to approve the request of employee Mladen Zdjelar to vest his pension as provided by Section 2.397 of the Employees Pension Plan and recommended by the Pension Advisory Committee. The motion was duly seconded and carried unanimously. 4. None. Other Business - 5. The meeting was adjourned at 9:10 a.m. Chair Employee's Pension Plan Trustees Attest City Clerk Pension Trustee 2011-01-11 Item #41 Meeting Date:2/15/2011 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve new hires for acceptance into the Pension Plan as listed. SUMMARY: Pension Name, Job. Class, & Dept./Div. Hire Date Elig Date Susan Becotte, Senior Accountant/Police 11/22/10 11/22/10 Robert Birdwell, SW Worker/Solid Waste/Gen'1 Ser. 9/27/10 11/22/10 Ashlee Sarsano, Crime Scene Technician/Police 12/6/10 12/6/10 JoAnna Fagan, Library Assistant/Library 8/28/10 12/4/10 ** Sandra Wilson, Deputy Police Chief/Police 12/6/10 12/6/10 *originally hired as temporary on 9/27/10; status changed to permanent and pension eligible as of 11/22/10 **originally hired as part-time on 8/28/10; changed to full-time and pension eligible as of 12/4/10 Review Approval: 1) Clerk Cover Memo Item # 2 Meeting Date:2/15/2011 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the requests of employees Deborah Lutz, Engineering Department, and Thomas Allegretti, Fire Department, for regular pensions as provided by Sections 2.397 and 2.398 of the Employees' Pension Plan. SUMMARY: Deborah Lutz, Senior Staff Assistant, Engineering Department, was employed by the City on April 11, 1988, and her pension service credit is effective on that date. Her pension will be effective January 1, 2011. Based on an average salary of approximately $40,491 per year over the past five years, the formula for computing regular pensions, and Ms. Lutz' selection of the Life Annuity, this pension will approximate $25,289 annually. Thomas Allegretti, Fire Lieutenant, Fire Department, was employed by the City on October 12, 1980, and his pension service credit is effective on that date. His pension will be effective February 1, 2011. Based on an average salary of approximately $76,605 per year over the past five years, the formula for computing regular pensions, and Mr. Allegretti's selection of the Life Annuity, this pension will approximate $69,490 annually. Section 2.397 provides for normal retirement eligibility when a participant has completed thirty years of credited service, has reached age 55 and completed twenty years of credited service, or has reached age 65 and completed ten years of credited service. Section 2.397 also provides for normal retirement eligibility when a participant has completed twenty years of credited service or has reached age 55 and completed ten years of credited service in a type of employment described as hazardous duty and further defines service as a Fire Lieutenant as meeting the hazardous duty criteria. Ms. Lutz qualifies under the age 55 and 20 years of service criteria. Mr. Allegretti qualifies under the hazardous duty criteria. Review 1) Financial Services 2) Office of Management and Budget 3) Clerk 4) Assistant City Manager 5) Clerk 6) City Approval: Manager 7) Clerk Cover Memo Item # 3 - Hnacnmem numoer7 Page 1 of 10 CITY OF CLEARWATER EMPLOYEES' SEPARATION PAY PREFERENCES PREFERENCE #1 Employees can receive a lump sum payment for vacation, floating holiday pay, sick leave incentive, bonus days (if applicable), and 1 /2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum payment nor will this amount count as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for vacation, floating holiday pay, sick leave incentive, bonus days (if applicable), and 1 /2 of accrued sick leave. Employee may choose to run out this time in any manner. Balance will be paid in a lump sum on employee's final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following month. !, I Jo ter L? an employee of the City of Clearwater, hereby apply for pension benefits under the City's Employees' Pension Plan. I hereby certify that I fully understand the preferences offered to me. I choose to retire using separation pay preference # zL and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out ?/? vacation sick Lump Sum /.? (V vacation 63SYlsick floaters bonus hours floaters /s bonus hours I understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. WIT ESSES: 7 4n, Uj,bi? Revised 1102 Form #9900-0008 EMPLOYEE'S SIGNATURE: J z"t SOCIAL SECURITY #: ADDRESS: I I V?V ` r Gn" tt, /V L zR77e - AIS- PHONE:?? S DATE: File Name: Employee Separation Pay Pref Item # 3 Attachment aumber 1 Page 2 of 10 CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM I, 1 k4f? do hereby apply for retirement under the City of Clearwater General Employees' Pension Plan. I Job Classification: Sex: M/ t I Department: Division: Benefits Date: / Date of Hire: Date of Birth: Resignation Date: Spouse's Name: Sex: M F Spouse's Date of Birth: The type of pension for which I am applying is (check only one): Regular Pension based on years of service Job-connected Disability Pension Non-job-connected Disability Pension The City of Clearwater Employees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 - #6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1 - Joint and Survivor Annuit; The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2.397 (a) (3) (A)] The Participant's surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuity The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] Option 3 - 10 Year Certain & Life Annuity - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives- If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)] Option 4 - 50% Joint & Survivor Annuity - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Option 5 - 75% Joint & Survivor Annuity - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Item # 3 Hnacnmem numoer I Page 3 of 10 untion 6 - 1010% joint & Survivor Ann uify - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)J I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Option selection to be indicated both by Number and Description.) I understand that once my first pension check is received, my decision on this option is irrevocable. Option #: 1 Employee's Signature: Description: Joint and Survivor Annuity Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date: Date of Birth If taking Option 2 sign below: Option #: 2 Description: _Life AAnnuity Employee's Signature: + s'?cG Date: If takinq Option 3, 4, 5, or 6 fill in beneficiary information and sign below: Option #: Description: My designated beneficiary is: Name: Date of Birth: Sex M F Social Security Number: Phone Number: Address: Employee's Signature: Date: STATE OF FLORIDA The foregoing instrument was acknowledged before m" e this COUNTY OF PINELLAS r loo I,2o! v by r) e.?io"A Ly- _ who is ,'k DINA AYRES HYSON MY COMMISSION # DD896031 EXPIRES June 03, 2013 (407) 398-0153 rloridaNolervServlce.com Rev. 4/08 Form #9900-0009 personally known to Oe or who has provided as'id>ntifr-81i and did/did n t take an oath. Notary Public (Signatur ) pfn"' Tl ,'Pf ?? SOn Name of Notary Printed My Commission expires: 3 d o/ 3 File Name: Pension Entitlement Option Form Item # 3 -- HZiacnmem nUMDer- i Page 4 of 10 II Estimated Pension Worksheet II Deborah Lutz LAST DATE PAID: BENEFITS DATE CREDITED SERVICE Prepared by: Deborah Ford Date: May 24, 2010 CALENDAR YEAR 12/27/2010 2004 4/11/1988 2006 22.7111 2007 2008 2009 5/ 12/ x x GROSS. PENSION EARNINGS $39,354.46 $39,472.89 $41,391.35 $40,670.22 $41,565.68 $202,454.60 (5 Year Total) $40,490.92 (Yearly Avg) $3,374.24 (Monthly Avg) 0.0275 (Benefit Rate) 22.7111 (Yrs of Service) $2,107.40 (Est Mtly Pension) Item # 3 Hnacnmem numoer i Page 5 of 10 City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors 20-Dec-10 sm ESTIMATE clract01 Version: Employee Name: Deborah Lutz 1-4-96 Employee Date of Birth: 10 29 52 Marital Status: W Spouse Date of Birth: Beneficiary Date of Birth: Benefit Commencement Date : 1 1 2011 Estimated Monthly Normal Retirement Benefit. $2,865.90 Actuarial Equivalent Adjustment Factors: Option 1 Normal Form 1.00000 Option 2 Life Annuity #VALUE! Option 3 10 Year Certain #VALUE! Option 4 50% J&S #VALUE! Option 5 75% J&S #VALUE! Option 6 100% J&S #VALUE! ESTIMATE Estimated Monthly Benefit $2,865.90 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Item # 3 - txnacnmern numoer i Page 6 of 10 CITY OF CLEARWATER EMPL O YEES' SEPARA TION PA Y PREFERENCES PREFERENCE #1 Employees can receive a lump sum payment for vacation, floating holiday pay, sick leave incentive, bonus days (if applicable), and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum payment nor will this amount count as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for vacation, oating hio7i-day pay, sic cT-leaveincentive -bonus-days Cf--app ica e and 1 /2 of accrued sick leave. Employee may choose to run out this time in any manner. Balance will be paid in a lump sum on employee's final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following month. l 1 OmccS , an employee of the City of Clearwater, hereby apply for pension benefits under the City's Employees' Pension Plan. I hereby certify that I fully understand the preferences offered to me. I choose to retire using separation pay preference # I and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out vacation sick floaters bonus hours Lump Sum ®° Ovacation 19 qa-Osick -76,y floaters bonus hours I understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. EMPLOYEE'S SIGNATURE: SOCIAL SECURITY #: - WI ESSES: ADDRESS: PHONE: . Revised 1/02 Form #9900-0008 i I ATE: File Name: Employee Separation Pay Pref Item # 3 Hnacnmem numoer i - Page 7 of 10 CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM SWORN POLICE AND FIRE PERSONNEL of Clearwater General Emplo*es' Pension Plan. Job Classification: Department: Benefits Date: Date of Birth: _ LQdo Spouse's Name: Spouse's Date of Birth: do hereby apply for retirement under the City m14 Sex:0 F Division: Date of Hire: Resignation Date: //51& ?4 Sex: M D The type of pension for which I am applying is (check only one): Regular Pension based on years of service Job-connected Disability Pension Non-job-connected Disability Pension Early Retirement The City of Clearwater Employees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 - #7) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1 -Joint and Survivor Annuity The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five-year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount, except that, if greater for police officers and firefighters, the normal form of benefit shall be an annuity paid monthly for the life of the participant with 120 payments guaranteed. [See section 2.397 (a) (3) (A)] The Participant's surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuity The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)] Option 4 - 50% Joint P. Survivor AnnuiW - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. The beneficiary can be changed at any time. [Section 2.398 (b) (2) (a) (3)] Option 5 - 75% Joint & Survivor Annuity - (must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. The beneficiary can be c1fW*aA any time. [Section 2.398 (b) (2) (a) (3)] Hnacnmem numoer i Page 8 of 10 ()ntion 6 - 100% taint & S"rvivnr Annijity - (rnugt daginnate a beneficiaryl The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. The beneficiary can be changed at any time. [Section 2.398 (b) (2) (a) (3)] Option 7 - 66 213%, Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 66 2/3% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. The beneficiary can be changed at any time. [Section 2.398 (b) (2) (a) (3)] I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative optional benefit payment methods (Options 2 through 7) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Option selection to be indicated both by Number and Description.) I understand that once my first pension check is received, my decision on this option is irrevocable. Option #: 1 Employee's Signature: Description: Joint and Survivor Anne Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date: Date of Birth If taking Option 2 sign below: Option #: -2 Description: Life AnqlA?.. / Employee's Signature: j ae? Date: If taking Option 3 4 5 6 or 7 fill in beneficia information and sign below: Option #: Description: My designated beneficiary is: Name: Date of Birth: Sex M F Social Security Number: Phone Number: Address: Employee's Signature: Date: STATE OF FLORIDA The for NO instrument was acknowledged gfore me. Is COUNTY OF PINELLAS i ?3 ? 11 by O M t 41- G yew' who is personally known to me or who has provided as i n ific? io and wji? didLd3 n¢?ath. ?.K? Notary Public (Signature L, F ?Qf- Name of Notary Printed My Commission expires: OTARYPUBLIC-STATE OFMRIDA eaor'. # t} 753926 % :Commission 2012 Expires: MAY 15, Rev. 4/08 BONDF1?THRUATLANrICBOADINGCO.,INC 1te # 3 Form #9900-0053 File Name: Pension Entitlement Option Form Police ire Hnacnmem numoer i Page 9 of 10 II Estimated Pension Worksheet II Thomas Allegretti LAST DATE PAID: 1/3/2011 BENEFITS DATE 10/13/1980 CREDITED SERVICE 30.2222 Prepared by: Deborah Ford Date: 1/3/11 GROSS CALENDAR PENSION YEAR EARNINGS 2005 $73,944.84 2007 $77,300.12 2008 $76,485.82 2009 $78,539.44 2010 $76,757.19 $383,027.41 (5 Year Total) 5/ $76,605.48 (Yearly Avg) 12/ $6,383.79 (Monthly Avg) x 0.0275 (Benefit Rate) x 30.2222 (Yrs of Service) $5,305.64 (Est Mtly Pension) Item # 3 - Attachment number 1 Page 10 of 10 City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors Police and Fire Members Only 03-Jan-11 sm clract03 Version: August 9, 2000 Employee Name: Thomas Allegretti Employee Date of Birth: 12 18 1955 Marital Status: M Spouse Date of Birth: 3 1 1958 Beneficiary Date of Birth: 3 1 1958 Benefit Commencement Date : 2 1 2011 Estimated Monthly Normal Retirement Benefit: $5,305.64 Estimated ...................... ................. Monthly Actuarial Equivalent Adjustment Factors: Benefit Normal Form 1.00000 $5,305.64 Life Annuity 1.09145 $5,790.83 10 Year Certain 1.07571 $5,707.33 50% J&S 1.03434 $5,487.86 67% J&S 1.01662 $5,393.80 75% J&S 1.00798 $5,347.96 100% J&S 0.98292 $5,215.02 Item # 3 Meeting Date:2/15/2011 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the request of employee Jack Bryant, Marine and Aviation Department, to vest his pension as provided by Section 2.397 of the Employees' Pension Plan. SUMMARY: Jack Bryant, Marine Facility Operator, Marine and Aviation Department, was employed by the City on July 24, 1995 and began participating in the Pension Plan on that date. Mr. Bryant will terminate from City employment on January 17, 2011. The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater or change status from full-time to part-time after completing ten or more years of creditable service (pension participation), such employee shall acquire a vested interest in the retirement benefits. Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Section 2.397 provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of credited service, has completed 30 years of credited service, or has reached age 65 and completed ten years of credited service. Mr. Bryant would have completed at least 10 years of service and reached age 65 on January 17, 2013. His pension will be effective February 1, 2013. Review Approval: 1) Clerk Cover Memo Item # 4 ---/Anacnmenl numoer i Page 1 of 1 APPLICATION FOR VESTED RIGHTS PENSION ;?r(4 being a person leaving employment with the City of Clearwater, Florid and having completed ten (10) or more years of credited service, such service having occurred during the period from (date o ntry into Pension Plan) l 4 a Y, !9 9-S'to (date of resignation or change of status) kr U4 t U / 7, o) Q // hereby makes application to receive the vested rights pension provided for by the City Code of Ordinances. As such former employee, I understand the pension requested will be computed pursuant to the provisions of the City Code of Ordinance in effect on the date of resignation. I hereby further certify that my date of birth is Va viva e-s=j 17 / ry VY The date I will begin to receive my pension will be r b roll rU Further, I additionally certify that I have made no application seeking to obtain a return of the contributions that I paid into the Pension Fund during the period of my employment set forth above, I have not been convicted of a felony during my period of employment, and I have not received any E)ther pe of pension from the City. Signa,ktre Social Security Number Grp /) P-- c-)- t -7 3 04ctl- Der)artment/Division Street Address I I?r61e 4&Uj i Job Classific n City, State, Zip Code STATE OF FLORIDA The foregoing instrument was acknowledged before COUNTY OF PINELLAS me this 1.3'?'?) day of 11 ?-C?e?n 20 U Q4 Y-) who is personally know to me or who has provided as identification and who did/did not take an oath. 41116? Notary Public b e4 o r" Z `?? ?? Name of Notary Printed My commission expires: NOTARY PUBLIC-STATE OF FLORIDA Deborah L. Ford Commission #DD763426 Expires: MAY 15, 2012 BONDED THRU ATLANTIC BONDING CO., INC. Item # 4 Rev. 4/09 Vested Pension Form Meeting Date:2/15/2011 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve agreements hiring Hancock Timber Resource Group and the Molpus Woodlands Group as timber investment managers for the pension plan and authorize the appropriate officials to execute the same. SUMMARY: The Trustees authorized staff to conduct a search for timber investment managers for the plan. CapTrust, the plan's performance measurement consultant, and the Pension Investment Committee developed a short list of the five following firms for interviews: RMK Timber Group Molpus Woodlands Group Hancock Timber Resources Group Forest Investments Associates Timbervest As a result of the interviews and due diligence the Pension Investment Committee and CapTrust recommend that the plan hire Molpus Woodlands Group and Hancock Timber Resources Group as timber investment managers. The Trustees approved an asset allocation plan on December 13, 2009, that included three percent of the plan's assets in the timber asset class. The Pension Investment Committee and Cap Trust are recommending an allocation of eight million dollars to each manager. This sixteen million dollar allocation to the timber asset class represents approximately 2.3% of the current plan assets. Investment in this type of assets can only be made by qualified/accredited investors. The pension plan qualifies as a qualified/accredited investor because the plan has assets in excess of five million dollars and because the Pension Investment Committee has adequate investment expertise. Because this type of investment is available, only to qualified/accredited investors the procedure to enter into a contract with a manager is different than we have previously done. For this type of investment, the trustees need to approve hiring the manager, sign the documents and submit the documents to the timber manager for approval. The manager will then execute the agreement when he determines we qualify. This type of investment is a long-term commitment on the part of the pension plan. The main benefit to the pension plan of a timber investment is that correlation of timber is very, very low or negative to the other investment classes currently in the pension plan, while earning a competitive return. This should help reduce the volatility of the plan earnings from year to year. Molpus Woodlands Group charges an annual management fee of 100 basis points and an incentive fee of 15% on returns greater than 7%. Molpus also charges pass through fees for administration, accounting, acquisition, disposal, legal and harvest supervision. Hancock Timber charges an annual management fee of 95 basis points with an incentive fee of 20% on returns greater than 7%. Hancock charges no pass through fees. Both fee structures are about average for this asset class. Cover Memo Item # 5 Appropration Code Amount Appropriation Comment 646-07410-530100-585-000 Review 1) Financial Services 2) Office of Management and Budget 3) Clerk 4) Assistant City Manager 5) Clerk 6) City Approval: Manager 7) Clerk Cover Memo Item # 5 Attachment number 1 Page 1 of 20 Confidential Copy No. Prospective Investor: Contact Person: Telephone No: Fax No: State/Country of Domicile: Capital Commitment (USD):$ MOLPUS WOODLANDS FUND III, L.P. SUBSCRIPTION AGREEMENT THE OFFERING OF SECURITIES DESCRIBED HEREIN HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT, OR UNDER ANY SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION. THIS OFFERING IS MADE PURSUANT TO RULE 506 OF REGULATION D UNDER SECTION 4(D) OF THE SECURITIES ACT, WHICH EXEMPTS FROM SUCH REGISTRATION TRANSACTIONS NOT INVOLVING A PUBLIC OFFERING. FOR THIS REASON, THESE SECURITIES WILL BE SOLD ONLY TO INVESTORS WHO MEET CERTAIN MINIMUM SUITABILITY QUALIFICATIONS DESCRIBED HEREIN. A SUBSCRIBER SHOULD BE PREPARED TO BEAR THE ECONOMIC RISK OF AN INVESTMENT IN THE FUND FOR AN INDEFINITE PERIOD OF TIME BECAUSE THE LIMITED PARTNERSHIP INTERESTS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE LAWS OF ANY OTHER JURISDICTION, AND, THEREFORE, CANNOT BE SOLD UNLESS THEY ARE SUBSEQUENTLY REGISTERED OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. THERE IS NO OBLIGATION OF THE ISSUER TO REGISTER THE LIMITED PARTNERSHIP INTERESTS UNDER THE SECURITIES ACT OR THE LAWS OF. ANY OTHER JURISDICTION. TRANSFER OF THE LIMITED PARTNERSHIP INTERESTS IS ALSO RESTRICTED BY THE TERMS OF THE LIMITED PARTNERSHIP AGREEMENT RELATING THERETO. 112019448.2 Item # 5 Attachment number 1 Page 2 of 20 MOLPUS WOODLANDS FUND III, L.P. SUBSCRIPTION AGREEMENT FOR LIMITED PARTNERSHIP INTEREST Molpus Woodlands Fund III, LLC c/o Molpus Woodlands Group 654 North State Street Jackson, Mississippi 39202 Attention: Michael R. Cooper, Esq. Ladies and Gentlemen: _ (the "Subscriber), The undersigned prospective investor, c i ty n f r 1 R a rwgt f --r hereby tenders this Subscription Agreement to Molpus Woodlands Fund III-GP, LLC, a Delaware limited liability company (the "General Partner' ), which serves as the general partner of Molpus Woodlands Fund III, L.P., a Delaware limited partnership (the "Fund"), on the terms and conditions hereinafter set forth. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Private Placement Memorandum of the Fund dated May 24, 2010 (the "Memorandum"), A. Subscription. The Subscriber, intending to be legally bound, hereby irrevocably agrees to contribute, in installments, an aggregate amount of ei prht million Dollars ($ 8 , 0 0 0 , 0 0 0 _ } (the "Capital Commitment"} in the Fund pursuant to the terms of, and at the times required by, the Amended and Restated Limited Partnership Agreement of the Fund (the "Partnership Agreement") in return for a limited partnership interest in the Fund offered by the Fund pursuant to the Memorandum (the "Interest"). All payments of the Subscriber's Capital Commitment shall be trade in cash by check made payable to "Molpus Woodlands Fund III, L.P." or by wire transfer pursuant to instructions provided by the General Partner prior to the due date of such payments. The Subscriber acknowledges and agrees that the minimum subscription amount shall be $2,000,040, unless waived by the General Partner of the Fund in its sole discretion. The Subscriber hereby acknowledges receipt of a copy of the Partnership Agreement, attached hereto as Exhibit A. The Partnership Agreement will be entered into at the Initial Closing by all Partners of the Fund. B. Acceptance of Subscription. The Subscriber acknowledges and agrees that the subscription for the Interest contained within this Subscription Agreement is an offer by the Subscriber to invest the Capital Commitment indicated in Section A in return for the Interest. The Subscriber further acknowledges and agrees that the subscription for the Interest contained within this Subscription Agreement shall be subject to acceptance by the General Partner of the Fund and that the General Partner shall have the right, exercisable in its sole discretion, to accept or reject, in whole or in part, such subscription. If the subscription is accepted by the General Partner in whole or in part, the Fund will thereafter execute this Subscription Agreement and deliver the same to the Subscriber as soon as practicable thereafter. The Subscriber further acknowledges and agrees that upon a default of the Subscriber's Capital Commitment obligations to the Fund, the Interest may, among rather consequences, be subject to forfeiture in accordance with the terms of the Partnership Agreement. If this subscription is rejected by the Fund in whole or in part, the General Partner shall promptly return all funds received from the Subscriber applicable to the rejected portion of the subscription to the Subscriber without interest thereon or deduction therefrom. C. Fund's Conditions to Closing. The Fund's obligations hereunder are subject to acceptance by the General Partner of the Subscriber's subscription and to the fulfillment, prior to or at the time of closing, of each of the following conditions: (i) The representations and warranties of the Subscriber contained in this Subscription Agreement shall be true and correct at the time of closing; and 1/2019448.2 Item # 5 Attachment number 1 Page 3 of 20 (ii) All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions shall be satisfactory in substance and in form to the General Partner, the Fund and Bradley Arant Boult Cummings LLP ("Fund Counsel'), and the General Partner, the Fund or Fund Counsel shall have received all such counterpart originals or certified or other copies of such documents as the Fund may request. D. Background and Administrative Information. NAME IN WHICH INTEREST IS TO BE HELD: City of Clearwater TAX I.D. NUMBER: 5 9 0 0 0 0 2 8 9 If the Subscriber is an entity other than an individual, a copy of the organizational documents of the Subscriber is enclosed with this Subscription Agreement. PRINCIPAL BUSINESS AND CORRESPONDENCE ADDRESS: 100 South Osceola Avenue Street Clearwater FL 33758 City State "Lip Cade SUBSCRIBER'S TELEPHONE NUMBER AND E-MAIL ADDRESS: Telephone: C22-7) :562-4532 E-Mail: E. Representations and Warranties of the Subscriber. In order to permit the Fund to evaluate whether it may properly accept the subscription for an Interest contained within this Subscription Agreement and to induce the Fund to accept such subscription, the Subscriber hereby acknowledges, represents and warrants to, and covenants and agrees with, the Fund as follows: (i} The Subscriber received the Memorandum, read the same and all annexes thereto and enclosures therewith carefully, and is fully familiar with the contents thereof. No representations or warranties have been made to the Subscriber by the Fund, the General Partner or any agent of said persons, other than as set forth in the Memorandum, the Partnership Agreement and this Subscription Agreement. The Interest will be held under the following type of ownership {please check the applicable blank}: 112019448.2 Item # 5 Attachment number 1 Page 4 of 20 Individual Community Property Trust Partnership Corporation Limited Liability Company Other: GV) The Subscriber is and reasonably expects to continue to be an "accredited investor" as that tern is defined in Rule 501(x) of Regulation D promulgated by the U.S. Securities and Exchange Commission (the "SEC"} under the Securities Act of 1933, as amended (the "Securities Act's, as follows (please initial the space beside the applicable category) (upon request of the Fund, the Subscriber must provide information to document the representation initialed, as described within each paragraph): (a) A bank as defined in section 3(a)(2) of the Securities Act or a savings and loan association or other institution as defined in section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance company as defined in section 2(13) of the Securities Act; an investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; a Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such Act, which is either a bank, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,400, or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors; (b) A private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940; (c) An organization described in section 501(c)(3) of the Internal Revenue Code, or a corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,400,000; (d) A director, executive officer, or general partner of the Fund, or a director, executive officer, or general partner of the General Partner; 112019448.2 Item # 5 Attachment number 1 Page 5 of 20 (e) A natural person whose individual net worth, or joint net worth with such person's spouse, at. the time of his or her purchase exceeds $1,000,000; (f) A natural person who had an individual income in excess of $200,000 in each of the two most recent years, or joint income with that person's spouse in excess of $300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year; (g) A trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered., whose purchase is directed by a person with knowledge and experience in business and financial matters such that he is capable of evaluating the merits and risks of the prospective investment; or (h) An entity (including an Individual Retirement Account {IRA)) in which all of the equity owners or beneficiaries are accredited investors under clauses (a), (b), (c), (d), (e), (0 or (g) above. (v) The Subscriber is and reasonably expects to continue to be a "qualified purchaser" as that term is defined in Section 2(a)(51) of the Investment Company Act of 1940, as amendment (the "Investment Company _Act'), as follows (please initial the space beside the applicable category) (upon request of the Fund, the Subscriber must provide information to document the representation initialed, as described within each paragraph) (a) A natural person (including any person which is acquiring the interest with his or her spouse in a joint capacity, as community property or similar shared interest) that either individually or together with the Subscriber's spouse, owns investments (as defined by the SEC) that are valued at not less than $5,000,000; (b) An entity that owns investments (as defined by the SEC) that are valued at not less than $5,000,000 and is owned directly or indirectly by two (2) or more natural persons related as siblings, spouses (including former spouses) or direct lineal descendants by birth or adoption, spouses of such persons, the estates of such persons, or foundations, charitable organizations or trusts established by or for the benefit of such persons; (c) A trust not covered by clause (b) above and not formed for the specific purpose of acquiring the Interest, as to which the trustee or other person authorized to make decisions with respect to the trust and each settler or other person who has contributed assets to the trust is a person described in clause (a) or (b) above or clause (d) below; - - - - (d) An entity, acting for its own account or the accounts of others described in clause (a), (b) or (c) above, this clause (d) or clause (e) below, that in the aggregate owns and invests on a discretionary basis investments (as defined by the SF,C) that are valued at not less than $25,000,040; or (e) An entity, all of the outstanding securities of which are owned by persons or entities described in clauses (a) through (d) above or this clause (e). If the Subscriber belongs to this category only, list on a separate sheet to be 112019448.2 Item # 5 Attachment number 1 Page 6 of 20 attached hereto the equity owners of the Subscriber and the investor category which each such equity owner satisfies. (vi} If the Subscriber has made one of the representations set forth in clauses (b) through (e) of subparagraph (v), the Subscriber mattes one of the following representations:l (a) The Subscriber would be treated as an "investment company" under the Investment Company Act but for the fact that the Subscriber qualifies for one of the exemptions. from the definition of "investment company" provided for in Section 3(c)(1) or 3(c)(7) of the Investment Company Act. True (Please answer clause (b) below). False (Please skip to subparagraph (vii) below). (b) If the Subscriber checked "true" in clause (a) above, the Subscriber certifies that the Subscriber has read and understands the provisions of Section 2(a)(51)(C) of the Investment Company Act and Rule 2a51-2 promulgated under the Investment Company Act (copies of which are attached hereto as Exhibit B) and makes one of the following representations: (1) No consent of the Subscriber's direct or indirect beneficial owners is required for the Subscriber's treatment as a "qualified purchaser" with respect to the Fund; (2) Both: (A) all of the beneficial owners of the Subscriber's outstanding securities (other than short-term paper), determined in accordance with Section 3(c)(1)(A) of the Investment Company Act, that acquired such securities on or before April 30, 1996 (the "Pre-Amendment Beneficial Owners") and (B) all of the Pre- Amendment Beneficial Owners of any company that, but for the exclusions from the definition of "investment company" provided for in Section 3(c)(1) or 3(c)(7) of the Investment Company Act, would be an "investment company" and that directly or indirectly owns any outstanding securities of the Subscriber have consented to its treatment as a "qualified purchaser" under the Investment Company Act with respect to the Fund; (3) The Subscriber has made either of the representations set forth in clauses (b) or (c) of subparagraph (v) above, and all of the trustees, directors or general partners of the Subscriber have consented to the Subscriber's treatment as a "qualified purchaser" with respect to the Fund; or (4) The Subscriber cannot make any of the representations set forth in clauses (1), (2) or (3) above. (vii) The Subscriber has such knowledge and experience in financial and business matters that the Subscriber is capable of evaluating the merits and risks of the Subscriber's investment in the Fund. 112019448.2 Item # 5 Attachment number 1 Page 7 of 20 (viii) The execution and delivery of the Partnership Agreement and this Subscription Agreement, the consummation of the transactions contemplated thereby and the performance of the obligations thereunder will not conflict with or result in any violation of or default under any provision of any other agreement or instrument to which the Subscriber is a party or any license, permit, franchise, judgment, order, writ or decree, or any statute, rule or regulation, applicable to the Subscriber. (ix) No suit, action, claim, investigation or other proceeding is pending or, to the best of the Subscriber's knowledge, is threatened against the Subscriber which questions the validity of the Partnership Agreement or this Subscription Agreement or any action taken or to be taken pursuant to the Partnership Agreement or this Subscription Agreement. (x} The Subscriber (a) is aware that there is no public trading market for the Interest and it is highly unlikely that such a market will develop, (b) has adequate means of providing for the Subscriber's currents needs and personal contingencies, (c) has no need for liquidity in this investment, (d) has the ability to bear the economic risk of this investment, and (e) can afford a complete loss of the purchase price of this investment. The Subscriber does not have any reason to anticipate any change in the Subscriber's personal circumstances, financial or otherwise, which may cause or require any sale or distribution by the Subscriber of all or any part of the Interest herein subscribed. (xi) The Subscriber is purchasing the Interest for investment purposes only, for his, her or its own account, and not with a view towards the distribution or resale thereof. (xii) The Subscriber is familiar with the nature of, and risks attendant to, investments in securities of the type represented by the Interest and has determined that the purchase of the Interest is consistent with the Subscriber's investment objectives. (xiii) The Subscriber has been advised and understands that an investment in the Interest is speculative and involves a high degree of risk. (xiv) The Subscriber confirms that all documents, records, and books pertaining to the Fund and the investment have been made available to the Subscriber and the Subscriber also confirms that the Subscriber, to the extent it, he or she desired to do so, has been given an opportunity to make further inquiries of the Fund and its representatives with respect to the Fund and the investment and has requested and received all information about the Fund the Subscriber deemed necessary or appropriate to review prior to making an investment decision. (xv) The Subscriber is aware that the Interest has not been, and there are no present plans for it (or any other interests in the Fund) to be, registered under the Securities Act. or any state securities law. Accordingly, the Interest must be held indefinitely by the Subscriber unless it is registered under the Securities Act and any applicable state securities law, or unless, in the opinion of counsel satisfactory to counsel for the Fund, a sale or transfer may be made without such registration. The Subscriber also understands that the Fund does not presently contemplate that any registration will be made or that the Fund will take steps which will make the general provisions of Rule 144 available to permit the resale of the Interest. The Subscriber is also aware that the Fund does not presently intend, and it is not under any obligation, to take any action or bear any expense: (a) to register the Interest (or any other interests in 112019448.2 Item # 5 Attachment number 1 Page 8 of 20 the Fund) under the Securities Act or any state securities law for offer, sale, transfer, assignment, or other disposition by the Subscriber; (b) to make an exemption from registration available for any such offer, sale, transfer, assignment, or other disposition by the Subscriber, or (c) to obtain any opinion of counsel with respect to any such offer, We, transfer, assignment, or other disposition. (xvi) If an individual, the Subscriber is at least twenty-one (21) years of age. (xvii) The Subscriber is a resident of the state listed in the primary residence address of the Subscriber set forth above. (xviii) The information provided to the Fund by the Subscriber as to the Subscriber is true and correct as of the date hereof, and the Subscriber agrees to advise the blind prior to its acceptance of the subscription contained in this Subscription Agreement of any material change in any such information. (xix) At the request of the Fund, each of the undersigned will execute such other instruments and documents as may be reasonably required in connection with the purchase of the Interest. (xx) The Subscriber understands and acknowledges that the law firm of Bradley Arant Boult Cummings LLP is representing the Fund in connection with the sale of the Interest to the Subscriber and that Bradley Arant Boult Cummings LLP is not representing the Subscriber or acting as a broker, dealer, or agent in connection with this transaction. (xxi) The Subscriber is not relying on the Fund with respect to the tax and other economic considerations of an investment in the Interest and the Subscriber has relied on the advice of, or has consulted with, the Subscriber's own legal, tax and other advisors. The Subscriber acknowledges that she, he or it understands that anticipated tax benefits may not be available and, further, may be adversely affected through adoption of new laws or regulations or amendments to existing laws or regulations. The Subscriber acknowledges and agrees that the Fund is providing no warranty or assurance regarding the ultimate availability of any tax benefits to the Subscriber by reason of the Subscriber's investment in the Fund. (xxii) The Subscriber understands that information relating to the Subscriber shall appear on the financial statements and other records of the Fund. The Subscriber acknowledges and agrees that other Partners may receive such information as permitted by the Partnership Agreement or as required by applicable laws and may share such information with their advisors and other parties. (xxiii) The undersigned, if executing this Subscription Agreement in a representative or fiduciary capacity, has full power and authority to execute and deliver this Subscription Agreement in such capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation, limited liability company, or other entity for whom the undersigned is executing this Subscription Agreement, and such individual, ward, partnership, trust, estate, corporation, or other entity has full right and power to perform pursuant to this Subscription Agreement and make an investment in the Interest. 11201944$.2 Item # 5 Attachment number 1 Page 9 of 20 (xxiv) The Subscriber agrees that the acknowledgements, representations, warranties, covenants and agreements of the Subscriber set forth in this Subscription Agreement shall survive the execution and delivery of this Subscription Agreement and the consummation of any subscription for the Interest. F. Status as a Limited Partner. The Subscriber agrees that if the subscription contained in this Subscription Agreement is accepted, the Subscriber shall (i) become a Limited Partner in the Fund, (ii) execute and deliver a copy of the Partnership Agreement, (iii) be bound by the terms of the Fund's Partnership Agreement and (iv) perform all obligations imposed by the Partnership Agreement upon a Limited Partner with respect to the Interest. G. Restrictions on Assignment or Transfer of Interest. The Subscriber hereby acknowledges and agrees that the Subscriber will not offer, sell, transfer, assign, pledge, or otherwise dispose of the Interest, in whole or in part, or any interest in such Interest, except in strict compliance with the terms and conditions set forth in the Partnership Agreement. H. Irrevocability; Binding Effect. The Subscriber hereby acknowledges and agrees that the subscription contained in this Subscription Agreement is irrevocable, that, except as required by law, the Subscriber is not entitled to cancel, terminate, or revoke this Subscription Agreement or any provisions hereof, and that this Subscription Agreement and such other agreements shall survive the bankruptcy or dissolution of the Subscriber and shall be binding upon and inure to the benefits of the parties and their successors and permitted assigns. 1. Indemnification. The Subscriber agrees to indemnify and hold harmless the Fund and its members, managers, officers, employees, agents, attorneys, accountants, and affiliates against any and all loss, liability, claim, damage, and expense whatsoever (including, but not limited to, any and all attorney's fees and other expenses reasonably incurred in investigating, preparing, or defending against any litigation commenced or threatened or any claim whatsoever) due to, arising out of or based upon any breach of any representation, warranty, covenant or agreement of the Subscriber contained in this Subscription Agreement or any failure by the Subscriber to comply with any covenant or agreement made by the Subscriber herein or in any other document furnished by the Subscriber to any of the foregoing in connection with the transaction contemplated by this Subscription Agreement. J. Modification. Neither this Subscription Agreement nor, any provision hereof shall be waived, modified, discharged, or terminated except by an instrument in writing signed by the party against whom any such waiver, modification, discharge, or termination is sought. K. Notices. Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified mail, return receipt requested, or delivered against receipt to the party to whom it is to be given (i) if to the Fund, at the address set forth above, or (ii) if to the Subscriber, at the correspondence address set forth above (or, in either case, to such other address as the party shall have furnished in writing in accordance with the provisions of this Section K). Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for a notice changing a party's address which shall be deemed given at the time of receipt thereof. L. Assignment. This Subscription Agreement and the rights and obligations hereunder may not be assigned or delegated by the Subscriber without the prior written consent of the Fund, and any attempt to do so shall be void and of no effect. M. Applicable Law. This Subscription Agreement shall be construed in accordance with and shall be governed by the laws of the State of Delaware, without regard to its conflicts of laws principles that would cause the law of any other State to be applied to this Subscription Agreement. 9 112019448.2 Item # 5 Attachment number 1 Page 10 of 20 N. Counterparts. This Subscription Agreement may be executed by facsimile, through the use of separate signature pages or in any number of counterparts and each of such counterparts shall, for all purposes, constitute one agreement binding on all parties. 0. Entire Agreement. This Subscription Agreement constitutes the entire agreement among the parties hereto with respect to its subject matter and supersedes all prior agreements, whether written or oral, with respect to that subject matter. [Signature Page to Follow] 112019448.2 10 Item # 5 Attachment number 1 Page 11 of 20 IN WITNESS WHEREOF, the undersigned have executed, or caused this Subscription Agreement to be executed by its authorized representative, effective as of the 15th day of February, 2011. THE SUBSCRIBER; BOARD OF TRUSTEES OF THE EMPLOYEES' PENSION PLAN OF THE CITY OF CLEARWATER, FLORIDA By: Frank V. Hibbard Chairperson Approved as to form: Attest: Stuart A. Kaufman Rosemarie Call Pension Attomey City Clerk ACCEPTED AND AGREED: MOLPUS WOODLANDS FUND III, L.P. By: Molpus Woodlands Fund III-GP, LLC Its: General Partner By: Name: Its: Effective as of 2011 1Z Item # 5 Attachment number 1 Page 12 of 20 EXHIBIT A AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT OF MOLPUS WOODLANDS FUND III, L.P. (See attached.) ] 120 ]. 9448.2 12 Item # 5 Attachment number 1 Page 13 of 20 EXHIBIT B Section 2(a)(51)(C) of the Investment Company Act: (C) The term "qualified purchaser" does not include a company that, but for the exceptions provided for in paragraph (1) or (7) of Section 3(c), would be an investment company (hereafter in this paragraph referred to as an "excepted investment company"), unless all beneficial owners of its outstanding securities (other than short-term paper), determined in accordance with Section 3(c)(1)(A), that acquired such securities on or before April 30, 1996 (Hereafter in this paragraph referred to as "pre-amendment beneficial owners"), and all pre-amendment beneficial owners of the outstanding securities (other than short-term paper) or any excepted investment company that, directly or indirectly, owns any outstanding securities of such excepted investment company, have consented to its treatment as a qualified purchaser. Unanimous consent of all trustees, directors, or general partners of a company or trust referred to in clause (ii) or (iii) of subparagraph (A) shall constitute consent for purposes of this subparagraph.. 1/2019448.2 13 Item # 5 Attachment number 1 Page 14 of 20 Rule 2a51-2. Definitions of Beneficial Owner For Certain Purposes Under Sections 2(a)(51) and 3(c)(7) and Determining Indirect Ownership Interests. (a) Beneficial Ownership, General. Except as set forth in this section, for purposes of Sections 2(a)(51)(C) and 3(c)(7)(B)(ii) of the Act, the beneficial owners of securities of an excepted investment company (as defined in Section 2(a)(51)(C) of the Act) shall be determined in accordance with Section 3(c)(1) of the. Act. (b) Beneficial Ownership: Grandfather Provision. For purposes of Section 3(c)(7)(B)(ii) of the Act, securities of an issuer beneficially owned by a company (without giving effect to Section 3(c)(1)(A) of the Act ("owning company") shall be deemed to be beneficially owned by one person unless: (1) The owning company is an investment company or an excepted investment company; (2) The owning company, directly or indirectly, controls, is controlled by or is under common control with the issuer; and (3) On October 11, 1996, under Section 3(c)(1)(A) of the Act as then in effect, the voting securities of the issuer were deemed to be beneficially owned by the holders of the owning company's outstanding securities (other than short-term paper), in which case, such holders shall be deemed to be beneficial owners of the issuer's outstanding voting securities. (c) Beneficial Ownership: Consent Provision. For purposes of Section 2(a)(51)(C) of the Act, securities of an excepted investmmt company beneficially owned by a company (without giving effect to Section 3(c)(1)(A) of the Act ("owning company") shall be deemed to be beneficially owned by one person unless: (1) The owning company is an excepted investment company; (2) The owning company directly or indirectly controls, is controlled by, or is under common control with, the excepted investment company or the company with respect to which the excepted investment company is, or will be, a qualified purchaser; and (3) On April 30, 1996, under Section 3(c)(1)(A) of the Act as then in effect, the voting securities of the excepted investment company were deemed to be beneficially owned by the holders of the owning company's outstanding securities (other than short-term paper), in which case the holders of such excepted company's securities shall be deemed to be beneficial owners of the excepted investment company's outstanding voting securities. (d) Indirect Ownership: Consent Provision. For purposes of Section 2(a)(51)(C) of the Act, an excepted investment company shall not be deemed to indirectly own the securities of an excepted investment company seeking a consent to be treated as a qualified purchaser ("qualified purchaser company") unless such, excepted investment company, directly or indirectly, controls, is controlled by or is under common control with, the qualified purchaser company or a company with respect to which the qualified purchaser company is or will be a qualified purchaser. (e) Required Consent: Consent Provision. For purposes of Section 2(a)(5 1)(C) of the Act, the consent of the beneficial owners of an excepted investment company ("owning company") that beneficially owns securities of an excepted investment company that is seeking the consents required by Section 2(a)(5 1)(C) ("consent company") shall not be required unless the owning company directly or indirectly controls, is 112a19Q4$.2 14 Item # 5 Attachment number 1 Page 15 of 20 controlled by, or is under common control with, the consent company or the company with respect to which the consent company is, or will be, a qualified purchaser. Notes to Rule 2a51-2. 1. On both April 30, 1996 and October 11, 1996, Section 3(c)(1)(A) of the Act as then in effect provided that. (A) Beneficial ownership, by a company shall be deemed to be beneficial ownership by one person, except that, if the company owns 10 per centum or more of the outstanding voting securities of the issuer, the beneficial ownership shall be deemed to be that of the holders of such company's outstanding securities (other than short-term paper) unless, as of the date of the most recent acquisition by such company of securities of that issuer, the value of all securities owned by such company of all issuers which. are or would, but for the exception set forth in this subparagraph, be excluded from the definition, of investment company solely by this paragraph, does not exceed 14 per centum of the value of the company's total assets. Such issuer nonetheless is deemed to be an investment company for purposes of Section 12(d)(1). 2. Issuers seeking the consent. required by Section 2(a)(51)(C) of the Act should note that Section 2(a)(5 1)(C) requires an issuer to obtain the consent of the beneficial owners of its securities and the beneficial owners of securities of any "excepted investment company" that directly or indirectly owns the securities of the issuer. Except as set forth in paragraphs (d) (with respect to indirect owners) and (e) (with respect to direct owners) of this section, nothing in this section is designed to limit this consent requirement. 112019448.2 15 Item # 5 Attachment number 1 Page 16 of 20 1%4 ( ] 1. 3' t I S R m WOO, LANDS C, i?,[] -LI r December 3, 2010 City of Clearwater Employee's Pension Plan Attn: Board of Trustees 1(1(1 S. Myrtle Avenue Clearwater, Florida 33758 lte: Molptis Woodlands Fund III, 1.,.P. Ladius and 6entlenten: In connection with the investment in interests ("interests") of Molpus Woodlands Fund 111, I..P. (the "Company") by the City of Clearwater Employee's Pension Plan (tile "Pension Fund"), Molpus Woodlands Fund III-GP, LI.,C ("Manager") is providing; certain additional representations to the Pension f=und and entering into certain additional agreements, all as scat forth in this letter (the "Side Letter'"). Upon execution by the Company and the Manager, this Side Letter shall be a binding; agreement against the Manager and the Company which may not be amended without the written consent of the Manager and the Pension Fund. Notwithstanding any provision of the Subscription Agreement, as amended from tirne to time, and the Amended and Restated Limited Partnership Agreement, as amended from time to time, or any other inaterials used in the offering or sale of Interests in the Company (collectively, the "011cring Documents") to the contrary, to the extent that any provision of the Of eriiig; Documents conflicts with the terms of this Side Letter, the terns of this Side: Letter shall control. 1, Notwithstanding anything contained herein or in the Offering Documents to the contrary, in the event that Manager has either previously entered into or enters into a side letter or similar agreement/arrangement with an existing or future investor in the Company with an investment in the Company equal to or less than the value of the Pension Fund's investment in the Company (each, an "Other Side Letter") that has the effect of establishing; rights (including; fees) or benefits that otherwise treat such investor in a manner more favorable in any material respect than the rights and benefits established in favor orthe Pens] (in Fund by the. Offering Documents (or pursuant to this Side Letter), the Pension Fund, at its sole discretion, will be entitled to the rights and benefits under each such siicl? [)tl?cr Side Letter i [`the Pension Fund provides written notice to Manager of election within thirty (30) days of receipt of a copy of'such Other Side Letter. Manager shall provide the Pension Fund with a copy of any Other Side Letter that contains such preferential rights or benefits within tern (10) days of entering, into it, Notwithstanding anything to the contrary, however, the Pension Fund acknowledges that the Pension ]Fund shat l neat be entitled to the benefit of any provisions (1) which are included in any such Otllcg. Side Lettelr solely ecau€ j -of ._ru. g4jj•eine?t c) 1#iw s 3tut ° ruler U f tilali ? to d,`i JNorf 1 . r:,or• Strvc,t is ti,lr,, h i itsr ! )[ x,nr: I I•' .'. k . T7 ?rslnli r > }?, Ina1 1,11'li'rll,h?=LES., t!ri . 1C'irl+ i?i??•r!r+r? ?fi,',. r+J :1l.,1 '7i?:?l+fvJ::?rrl.Ild??,r„cr:...?. L1.1: Ir.i?rl iii f.i 11. ;;,':i/fI .,),,/ 11' I}j!r.IJli+rr1. .?J?,1;,,iJ1!r; IiIfli? iio,,",, ?ir. 1b1). yia 1.,;- r:b.i+ic, :inn, ,II w(,:. i_rr,m t.ena Ri,-h)iond. K.,oaiiiItem # 5 Attachment number 1 Page 17 of 20 Oty of'Clearwater E'mployee's Pension Plan Side Lotter Page 2 which such other investor is subject and the Pension Fund is not, (ii) which are personal to such investor based solely on the place of organizAition or headquarters, organizational form of, or other particular restrictions applicable to, such investor, and where such factors cannot be made reasonably applicable to the Pension Fund, or (iii) so long as such provision does not impart a benefit which would violate the prohibition against self= dealing, which are for the benefit of the Manager ear any of its Affiliates or any entity formed for investment in [lie Company by any of the foregoing or any officers, directors, or employees of the foregoing or any family members of the foregoing. Manager shall notify the Pension Fund within a reasonably: period not to exceed twenty (20) days of any civil, criminal, Securities and Exchange Commission ("SEC"), I.J.S. Department of Labor (the "Department"} or other governmental investigation (which does not include routine examinations, audits or reviews). disciplinary proceeding, or administrative action finding a material violation by Manager (or an Affiliate thereof) of an investment related statute or regulation. Manager shall also notify the Pension Fund immediately in the event of a civil, criminal, SI C, Department or other governmental investigation, disciplinary proceeding, report of administrative action related to or involving the Pension fund's investment in the Company. Additionally, Manager shall iiotify the Pension Fund within ten (10) days of the date it (or an Aliiliatc thereof) is the subject of any order or finding by a court of a violation by Manager (or an Affiliate thereof) of an investment related statute or regulation. a. '['his Side Letter may he executed in any number of counterparts, each of which shall be deemed an original and said counterparts shall constitute but one and the same instrument and niay be sufficiently evidenced by any one counterpart. 4. This Side Letter is not assignable by either party hereto in whale or in part without the prior written consent of the other party, which may be withheld in such party's sole discretion. 5. Indemnification. The Company agrees to the deletion of paragraph I of the Subscription Agreement. 6. Standard of'C.are. Manager agrees that it is a fiduciary to the Pension Fund. Nothing set forth in the Subscription or .Limited Partnership Agreements shal l relieve the Manager of its duty to manage the affairs of the Company in accordance with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent. person acting in a like capacity and familiar with Stich matters would use in the conduct of an enterprise of a like character and with like aims to the Company. 7. Public Records Law. The Pension Fund acknowledges that it is committed to protecting the confidentiality of all confidential information that the Manager provides to the Pension Fund regarding the Company. Notwithstanding the foregoing, the Manager acknowledges that the Pension fund is a government plan subject to laws, regulations and policies including certain public disclosure rOquirc;ments. Notwithstanding, anything to the Item # 5 Attachment number 1 Page 18 of 20 City of Clearwater Employee's Pension Plan Sides Letter Page 3 contrary contained in the Agreement, the Manager agrees that the Pension fund shall be relieved from any confidentiality or other obligations under the Agreement or otherwise to the extent necessary to comply with its obligations under such laws, regulations and policies; provided, however, that, unless otherwise prohibited by law, prior to disclosing any "Non-Fund Level Information," the Pension Fund shall use its reasonable; hest efforts to promptly notify the Manager upon receipt of a request for Non- Fitnd Level Information and will consult with the Manager regarding the response to such disclosure request, consistent with applicable laws, rules, regulations, the Pension Fund's board policies and fiduciary duties. In connection therewith and notwithstanding anything to the contrary contained in the Agreement, the Manager consents to the disclosure by the Pension Fund of "Fund Level Information" to the public and agrees that such disclosure shall not constitute a breach of the Agreement. 8. Notice of Certain Matters. The Manager shall notify the Pension Fund as soon as reasonably practicable of any claims for indemnification arising against the Company pursuant to the Agreement. The Manager shall promptly notify the Pension Fund of the commencement of any lawsuit or legal proceeding (and the outcome:, when resolved, of such lawsuit or legal proceeding) in which the Manager is a named party and which, if adversely determined, would be reasonably likely to materially adversely affect the Manager's ability to perform its obligations under the Agreement. 9. Any provision in this side letter or other document or Agreement to the contrary, ` notwithstanding, by reason of the laws, regulations and public policies of the State of Florida applicable to the Pension fund as a governmental entity in the State of Florida, the Manager agrees, that (a) it will not take any action that will cause the Pension Fund to not be in compliance with Florida Public Records Act and Government in the Sunshine Law; N it will not take any action that will cause. the Pension Fttnd to not be in compliance with Public [~,ntities Crime Bill Notice - Section 287.133, Florida Statutes; and (c) it will not take any action that will cause the Pension Fund to not be in compliance with Valuation of Illiquid Investments - Section 112.66] (17), Florida Statutes. 10. Venue. By reason of the laws, regulations and public policies of the State of Florida applicable to the Pension Fund as a governmental entity in the State of Florida, the Manager agrees, that with regard to issues arising out of the terms of this side letter only, that (a) it will submit to the nonexclusive Jurisdiction of the courts located in Pinellas County, Florida, and (b) it will bring any suit, action, claim or proceeding against the Pension Fund under any provision of this Letter Agreement or the Pension Fund's Subscription Agreement in the courts located in Pinellas County, Florida. (REMAINDER OF THIS PAGE INTENTIONALLY LEFT 13LANKI Item # 5 Attachment number 1 Page 19 of 20 City of0earwater 1-;mployee's Pension flan S]LIv f_,etter Pa-e 4 Sincerely, Mo1Pus Woodlands Fund III, L.P. lay' Molnus Woodlands Fund III-(,P, LL By: HI;:C:EIVED AND ACKNOWLEDGED BY: City of Clearwater Employee's Pension Plan By: Name: Title: Item # 5 Attachment number 1 Page 20 of 20 City of Clearwater Employee's Pension Plan Side Letter Page 5 BOARD OF TRUSTEES OF THE EMPLOYEES' PENSION PLAN OF THE CITY OF CLEARWATER, FLORIDA 6y: Frank V. Hibbard Chairperson Approved as to form: Attest: Stuart A. Kaufman Rosemarie Call Pension Attorney City Clerk Item # 5 Attachment number 2 Page 1 of 20 SUBSCRIPTION AGREEMENT Hancock Timberland XI LP John Hancock Distributors LLC c/o Hancock Natural Resource Group, Inc. 99 High Street, 26th Floor Boston, Massachusetts 02110-2320 Attention: Tim Cayen Dear Ladies and Gentlemen: Reference is made to the offering of units of limited partnership interests of Hancock Timberland XI LP (the "Partnership") pursuant to the terms of the Confidential Private Placement Memorandum, dated December 9, 2010, as amended (the "Memorandum"). Capitalized terms shall have the respective meanings ascribed to them in the Memorandum, unless otherwise specifically defined herein. The undersigned (the "Investor") agrees as follows: Subscription for Units. (1) The Investor agrees, subject to acceptance and approval by John Hancock Timber Resource Corporation (the "General Partner') and Hancock Natural Resource Group, Inc. (the "Advisor"), to become a limited partner of the Partnership, to subscribe for and acquire the number of units of limited partnership interests of the Partnership ("Units") which may be purchased for the aggregate amount set forth below its signature on the signature page attached to this Subscription Agreement (the "Agreement") in the amount of US$100,000 per Unit subscribed for by the Investor at a closing to take place on or before June 30, 2011 (unless extended to a date on or before December 22, 2011), and otherwise in accordance with the terms and conditions described in the Memorandum (the "Closing") and thereafter on terms and conditions in accordance with the Memorandum and herein. All payments of the price of each Unit (the "Unit Price") shall be paid in immediately available U.S. funds. Subject to the terms and conditions set forth herein, the Investor's obligation to subscribe for and pay for such Units shall be complete and binding upon the execution and delivery of this Agreement. The Closing; Payment by the Investor; Failure to Pay. (1) The Investor will become a limited partner of the Partnership in respect of the Units subscribed for by it at the Closing in accordance with the provisions of the Memorandum, the Partnership Agreement and herein. The Closing will occur as described in the Memorandum. The Investor will be notified at least 10 days prior to the date of the Closing as to the portion of the Unit Price due with respect to the Units subscribed for and purchased by the Investor. If no Timberland Investment has been identified prior to the Closing, the portion of the Unit Price representing not more than 2 percent of the Investor's aggregate Unit Price for the Units subscribed for and purchased by the Investor will be due at the Closing. If one or more Timberland Investment(s) have been identified prior to the Closing, up to 100 percent of the aggregate Unit Price due with respect to the Units subscribed for and purchased by the fB1236635; 2) - 1 - Item # 5 Attachment number 2 Page 2 of 20 Investor may be required to be made at the Closing. Subject to the foregoing, if less than 100 percent of the aggregate Unit Price due with respect to the Units subscribed for and purchased by the Investor is paid at the Closing, the balance of such Unit Price shall be made as Timberland Investments are identified by the Advisor upon notice given by the Advisor and the General Partner at any time during the Acquisition Period. (2) The first payment of the Unit Price for the Units shall be paid by wire transfer of funds on or prior to the date when due in immediately available U.S. funds, in accordance with the wire instructions provided by the Advisor to the Investor prior to the Closing. (3) If an Investor fails in any instance to pay the full amount of any installment of its subscription when due and such failure continues for two business days after notice of such failure is given, or the Investor fails in two or more instances to pay the full amount of any installment of its subscription when due, the Partnership may, in its sole discretion and in addition to exercising any other rights or remedies afforded by law or at equity, take any one or more of the following actions, to which the Investor hereby consents: (a) Commence legal or other proceedings against the Investor to collect the due and unpaid amount plus interest thereon at a per annum rate equal to the lesser of (i) 4% plus the "Prime Rate" as reported in The Wall Street Journal, or (ii) the highest rate permitted by law) and the expenses of collection, including reasonable attorneys' fees, or to deduct such amount from future distributions to the Investor; (b) Upon notice, prohibit the Investor from paying additional installments of its subscription; and (c) Upon notice, require the Investor to sell (and the Investor hereby agrees to sell) its Units to a person designated by the Partnership who agrees to pay the unpaid amount of any defaulted Unit Price of the Investor's subscription and to assume the Investor's other obligations to the Partnership, at a purchase price equal to 75% of the aggregate Unit Price then paid. The Partnership may, in its sole discretion, cease taking any action commenced under this paragraph 3 or restore any right of the Investor reduced or terminated pursuant to this paragraph 3 prior to a sale of the Investor's Units pursuant to clause (c) above. III. Representations and Warranties of the Investor. The Investor hereby represents and warrants to the Partnership and the General Partner as follows, and the Investor acknowledges that the Partnership and the General Partner intend to rely on such representations and warranties. (1) SUITABILITY. THE INVESTOR HAS CAREFULLY READ AND UNDERSTANDS THIS AGREEMENT, THE PARTNERSHIP AGREEMENT, THE fB1236635; 2) -2- Item # 5 Attachment number 2 Page 3 of 20 MEMORANDUM AND THE EXHIBITS THERETO, HAS CONSULTED PROFESSIONAL ADVISORS REGARDING THE OFFERING AS IT HAS DEEMED NECESSARY, HAS EVALUATED THE RISKS OF INVESTING IN THE UNITS, AND HAS DETERMINED THAT SUCH UNITS ARE A SUITABLE INVESTMENT FOR IT. (2) ACCREDITED INVESTOR STATUS. Please indicate which one or more of the following is applicable to the Investor: (a) The Investor is an organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the Units offered, with total assets in excess of US$5,000,000. ? (b) The Investor is a trust, with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the Units offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of the Securities Act of 1933, as amended (the "Act"). ? (c) The Investor is a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of US$5,000,000, or it is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 ("ERISA") and the decision to invest in the Units has been made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or has total assets of US$5,000,000 or, is a self-directed plan, with investment decisions made solely by persons that are accredited investors. X (d) The Investor is an entity in which all of the equity owners are accredited investors. ? (e) The Investor is a natural person whose individual net worth (or joint net worth with the Investor's spouse) exceeds US$1,000,000. As used herein, "net worth" means total assets (excluding principal residence) at fair market value less total liabilities (excluding principal residence mortgage). ? (f) The Investor a natural person who had an individual income in excess of US$200,000 in each of the two most recent years or joint annual income with the Investor's spouse in excess of US$300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year. fB1236635; 2) - 3 - Item # 5 Attachment number 2 Page 4 of 20 (g) The Investor does not qualify in any of the above accredited investor categories. ? (3) QUALIFIED PURCHASER STATUS. Please indicate which one or more of the following is applicable to the Investor: To the extent that the Partnership claims exemption from registration under the Investment Company Act of 1940 in reliance on Section 3(c)(7) thereof, Units may only be acquired by investors who are "qualified purchasers" (as defined in Section 2(a)(51) of the Investment Company Act of 1940). Please indicate the basis of "qualified purchaser' status of the Investor by checking the applicable statement or statements. In connection therewith, the Investor must read below for the definition of "investments" and for information regarding the valuation of "investments," respectively. (a) A company, partnership or trust that owns not less than US$5,000,000 in "investments" and that is owned directly or indirectly by or for two or more natural persons who are related as siblings or spouse (including former spouses), or direct lineal descendants by birth or adoption, spouses of such persons, the estates of such persons, or foundations, charitable organizations or trusts established by or for the benefit of such persons (a "Family Company"). ? (b) A trust that is not covered by (a) above as to which the trustee or other person authorized to make decisions with respect to the trust, and each settlor or other person who has contributed assets to the trust, is a person described in clause (a), (c), (d) or (f) hereof. ? (c) A person, acting for its own account or the accounts of other qualified purchasers, who in the aggregate owns and invests on a discretionary basis not less than US$25,000,000 in "investments." ? (d) A qualified institutional buyer as defined in paragraph (a) of Rule 144A under the Securities Act, acting for its own account, the account of another qualified institutional buyer, or the account of a qualified purchaser, provided that (i) a dealer described in paragraph (a)(1)(ii) of Rule 144A shall own and invest on a discretionary basis at least US$25,000,000 in securities of issuers that are not affiliated persons of the dealer and (ii) a plan referred to in paragraph (a)(1)(D) or (a)(1)(E) of Rule 144A, or a trust fund referred to in paragraph (a)(1)(F) of Rule 144A that holds the assets of such a plan, will not be deemed to be acting for its own account if investment decisions with respect to the plan are made by the beneficiaries of the plan, except with respect to investment decisions made solely by the fiduciary, trustee or sponsor of such plan. X (e) A company, partnership or trust, each beneficial owner of the securities of which is a qualified purchaser. PLEASE NOTE: This certification does not apply to beneficiaries of an irrevocable trust. ? (f) A natural person (including any person who holds a joint, community property or other similar shared ownership interest in the partnership with that fB1236635; 2) -4- Item # 5 Attachment number 2 Page 5 of 20 person's qualified purchaser spouse) who owns not less than US$5,000,000 in "investments." categories. ? The Investor does not qualify in any of the above qualified purchaser DEFINITION OF "INVESTMENTS." The term "investments" means: (1) Securities, other than securities of an issuer that controls, is controlled by, or is under common control with, the investor that owns such securities, unless the issuer of such securities is: (i) an investment company or a company that would be an investment company but for the exclusions provided by Sections 3(c)(1) through 3(c)(9) of the Investment Company Act of 1940 or the exemptions provided by Rule 3a-6 or 3a-7 promulgated under the Investment Company Act of 1940, or a commodity pool; or (ii) a Public Company (as defined below); or (iii) a company with shareholders' equity of not less than US$50,000,000 (determined in accordance with generally accepted accounting principles) as reflected on the company's most recent (and in any event not more than sixteen months old) financial statements; (2) Real estate held for investment purposes; (3) Commodity Interests (as defined below) held for investment purposes; (4) Physical Commodities (as defined below) held for investment purposes; (5) To the extent not securities, Financial Contracts (as defined below) entered into for investment purposes; (6) In the case of an investor that is a company that would be an investment company but for the exclusions provided by Section 3(c)(1) or 3(c)(7) of the Investment Company Act of 1940, or a commodity pool, any amounts payable to such investor pursuant to a firm agreement or similar binding commitment pursuant to which a person has agreed to acquire an interest in, or make capital contributions to, the investor upon the demand of the investor; and (7) Cash and cash equivalents held for investment purposes. Real estate that is used by the investor or a Related Person (as defined below) of the investor for personal purposes, or as a place of business, or in connection with the conduct of the trade or business of such investor or a Related Person of the investor, will NOT be considered real estate held for investment purposes, provided that real estate owned by an fB1236635; 2) -5- Item # 5 Attachment number 2 Page 6 of 20 investor who is engaged primarily in the business of investing, trading or developing real estate in connection with such business may be deemed to be held for investment purposes. However, residential real estate will not be deemed to be used for personal purposes if deductions with respect to such real estate are not disallowed by section 280A of the Code. A Commodity Interest or Physical Commodity owned, or a Financial Contract entered into, by the investor who is engaged primarily in the business of investing, reinvesting, or trading in Commodity Interests, Physical Commodities or Financial Contracts in connection with such business may be deemed to be held for investment purposes. For purposes of determining the amount of investments owned by an investor that is a company, there may be included investments owned by majority-owned subsidiaries of the investor and investments owned by a company ("Parent Company") of which the investor is a majority-owned subsidiary, or by a majority-owned subsidiary of the investor and other majority-owned subsidiaries of the Parent Company. In determining whether a natural person is a qualified purchaser, there may be included in the amount of such person's investments any investment held jointly with such person's spouse, or investments in which such person shares with such person's spouse a community property or similar shared ownership interest. In determining whether spouses who are making a joint investment in the Partnership are qualified purchasers, there may be included in the amount of each spouse's investments any investments owned by the other spouse (whether or not such investments are held jointly). There shall be deducted from the amount of any such investments any amounts specified by paragraph 2(a) under VALUATIONS OF INVESTMENTS below incurred by such spouse. In determining whether a natural person is a qualified purchaser, there may be included in the amount of such person's investments any investments held in an individual retirement account or similar account the investments of which are directed by and held for the benefit of such person. As used herein, the following terms shall have the meaning set forth below: "Commodity Interests" means commodity futures contracts, options on commodity futures contracts, and options on physical commodities traded on or subject to the rules of: (i) any contract market designated for trading such transactions under the Commodity Exchange Act and the rules thereunder; or (ii) any board of trade or exchange outside the United States, as contemplated in Part 30 of the rules under the Commodity Exchange Act. "Family Company" means a company, partnership or trust that owns not less than US$5,000,000 in "investments" and that is owned directly or indirectly by or for two or more natural persons who are related as siblings or spouse (including former spouses), or direct lineal descendants by birth or adoption, spouses of such persons, the estates of such persons, or foundations, charitable organizations or trusts established for the benefit of such persons. fB1236635; 2) - 6 - Item # 5 Attachment number 2 Page 7 of 20 "Financial Contract" means any arrangement that: (i) takes the form of an individually negotiated contract, agreement, or option to buy, sell, lend, swap, or repurchase, or other similar individually negotiated transaction commonly entered into by participants in the financial markets; (ii) is in respect of securities, commodities, currencies, interest or other rates, other measures of value, or any other financial or economic interest similar in purpose or function to any of the foregoing; and (iii) is entered into in response to a request from a counter party for a quotation, or is otherwise entered into and structured to accommodate the objectives of the counterparty to such arrangement. "Physical Commodities" means any physical commodity with respect to which a Commodity Interest is traded on a market specified in the definition of Commodity Interests above. "Public Company" means a company that: (i) files reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended from time to time; or (ii) has a class of securities that are listed on a Designated Offshore Securities Market, as defined by Regulation S of the Securities Act. "Related Person" means a person who is related to the investor as a sibling, spouse or former spouse, or is a direct lineal descendant or ancestor by birth or adoption of the investor, or is a spouse of such descendant or ancestor, provided that, in the case of a Family Company, a Related Person includes any owner of the Family Company and any person who is a Related Person of such an owner. VALUATIONS OF INVESTMENTS. The general rule for determining the value of investments in order to ascertain whether an investor is a qualified purchaser is that the value of the aggregate amount of investments owned and invested on a discretionary basis by the investor shall be their fair market value on the most recent practicable date or their cost. This general rule is subject to the following provisos: (1) In the case of Commodity Interests, the amount of investments shall be the value of the initial margin or option premium deposited in connection with such Commodity Interests; and (2) In each case, there shall be deducted from the amount of investments owned by the investor the following amounts: fB1236635; 2) -7- Item # 5 Attachment number 2 Page 8 of 20 (a) The amount of any outstanding indebtedness incurred to acquire the investments owned by the investor. (b) A Family Company, in addition to the amounts specified in clause 2(a) above shall have deducted from the value of such Family Company's investments any outstanding indebtedness incurred by an owner of the Family Company to acquire such investments. (4) SUPPLEMENTAL INFORMATION. Units? (a) Was the Investor organized for the specific purpose of acquiring the Yes ? No X PLEASE NOTE: If the answer to question 4(a) is "Yes", each Person who is an equity owner of the Investor must complete a copy of this Part III of the Subscription Agreement as if such person were directly acquiring the Units. (b) With respect to its acquisition of the Units, is the Investor a participant- directed defined contribution plan (such as a 401(k) plan), or a partnership or other investment vehicle (x) in which its partners or participants have or will have any discretion as to their level of investment in the Investor or in investments made by the Investor (including the Investor's investment in the Units), or (y) that is otherwise an entity managed to facilitate the individual decisions of its beneficial owners to invest in the Partnership? Yes ? No X (c) Assuming that the Investor will own less than 10% of the voting securities of the Partnership, does the Investor count as one beneficial owner under Section 3(c)(1) of the Investment Company Act of 1940? Yes X No ? If the answer to question 4(c) is "No," under Section 3(c)(1) of the Investment Company Act of 1940, assuming that the Investor will own less than 10% of the voting securities of the Partnership, how many beneficial owners does the Investor count as? (d) Is the Investor a private investment company or a non-U.S. investment company exempt from registration under the Investment Company Act of 1940, in reliance on Section 3(c)(1), 3(c)(7) or 7(d) thereof? Yes ? No X 30, 1996? fB1236635; 2) If the answer to question 4(d) is "Yes," was the Investor formed on or before April -8- Item # 5 Attachment number 2 Page 9 of 20 Yes ? No ? If the answer to the previous question is "Yes," has the Investor obtained the consent of its direct and indirect beneficial owners to be treated as a "qualified purchaser" as provided in Section 2(a)(51)(c) of the Investment Company Act of 1940 and the rules and regulations thereunder? Yes ? No ? (5) ERISA INFORMATION. Please indicate which one or more of the following is applicable to the Investor. (a) The Investor is a pension, profit-sharing, annuity or employee benefit plan (a "Plan") described in ERISA, whether or not subject to ERISA, or a "plan" as defined in Section 4975(e)(i) of the Code, or the Investor is an entity whose underlying assets include Plan assets by reason of investments by "benefit plan investors" as defined under Section 3(42) of ERISA. X If the answer to question 5(a) is "Yes," is the Investor subject to ERISA? Yes ? No X If the Investor is an entity whose underlying assets include plan assets by reason of investments by benefit plan investors under Section 3(42) of ERISA, indicate the percentage of the entity held by benefit plan investors: (b) If the Investor is acquiring the Units as a trustee or custodian for an Individual Retirement Account, the Investor is a qualified IRA custodian or trustee. ? (c) The Investor is acquiring the Units with funds that constitute, directly or indirectly, assets of any employee benefit plan subject to ERISA or to Section 4975 of the Code. (d) The Investor is subject to ERISA. ? (6) OPPORTUNITY TO VERIFY INFORMATION. The Partnership, the General Partner and the Advisor have answered all inquiries posed by the Investor concerning the Partnership and/or investment in the Units, have provided all information regarding the Partnership and the Units that the Investor has requested, and have provided the Investor an opportunity to pose such questions and request such information. (7) DUE ORGANIZATION. It has been duly formed and is validly existing under the laws of the state or other jurisdiction of its organization with full authority to invest in the Partnership; its chief executive office and principal place of business are as set forth on the signature page to this Agreement; its purchase of the Units in accordance with the terms of this Agreement, the Partnership Agreement and the Memorandum has been authorized by all necessary corporate or other action; no proceedings exist for its merger, reorganization or dissolution; its purchase of the Units, and its actions thereto related, will not violate its fB1236635; 2) - 9 - Item # 5 Attachment number 2 Page 10 of 20 organizational documents, or any agreement, instrument or restriction or any statute, regulation, court or agency order to which it is a party or by which it or its assets are bound; and each of this Agreement and the related agreements required to be signed in connection herewith have been validly authorized and executed by it and each constitutes its binding and valid obligation, enforceable against it in accordance with its terms. (8) INVESTMENT INTENT. It is acquiring the Units on its own behalf, for investment and not with a view to resale or redistribution in whole or in part. (9) LIMITED TRANSFERABILITY. It understands that it must bear the economic risk of this investment for an indefinite period of time; that the Units are being offered only to qualified investors pursuant to an exemption from the registration requirements of the Act and that even if resale of the Units is otherwise permitted by the Partnership Agreement, no resale of the Units may be made unless the Units are subsequently registered under the Act or an opinion of counsel states that an exemption from such registration is available. (10) NO RELIANCE. It has not relied in connection with the investment in the Units upon any representations, warranties, agreements or statements other than those set forth in this Agreement, the Partnership Agreement or the Memorandum, including but not limited to any statement, recommendation or advice of the Advisor, the Partnership, the General Partner, John Hancock Distributors LLC, or any of their respective affiliates or any representative of the same. (11) KNOWLEDGE AND EXPERIENCE. Please indicate yes or no. (a) It is experienced in making and has made investments of a type similar to that of the Units in the past. X yes no (b) It has purchased, on one or more occasions in the past, privately placed restricted securities. X yes no (12) NO NEED FOR LIQUIDITY. It has no need for liquidity in connection with its purchase of the Units. (13) NO BORROWINGS. It has not borrowed any portion of its contribution to the Partnership, either directly or indirectly, from the Partnership, the Advisor or any affiliate of the foregoing. (14) (a) PATRIOT ACT REPRESENTATIONS. The funds to be used to pay the Unit Price by the Investor are not directly or indirectly derived from activities that may contravene federal, state or international laws and regulations, including anti-money laundering laws and regulations. The Investor is not, nor is any affiliate of the Investor, a Prohibited Person (as defined below) and to the extent the Investor is acting as agent or nominee for any person in connection with this Agreement, or otherwise has beneficial owners that are not disclosed to the Partnership or the Advisor, (i) it has carried out due diligence to establish the identities of such f 81236635; 2) - 0 - Item # 5 Attachment number 2 Page 11 of 20 beneficial owners and (ii) based on such due diligence, the Investor reasonably believes that no such beneficial owners are Prohibited Persons. The foregoing representations and warranties are understood to be relied upon by the Partnership and the Advisor and shall survive indefinitely, and the Investor agrees to promptly notify the Advisor in writing if any of the foregoing representations and warranties shall no longer be true and correct. "Prohibited Persons" means (i) persons, entities or organizations listed in Executive Order No. 13224 (September 23, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism) and any related legislation or similar Executive Orders (ii) persons, entities or organizations named on the List of Specially Designated Nationals and Blocked Persons maintained by the Office of Foreign Assets Control ("OFAC"), Department of Treasury, as such list may be amended from time to time, or any similar list maintained or administered by OFAC, (iii) any senior foreign political figure, and member of a senior foreign political figure's immediate family or any close associate of a senior foreign political figure, unless the Advisor, after being specifically notified by the Investor in writing that it is such a person, entity or organization, conducts further due diligence, and determines that the relationship between such person and the Investor does not affect the operations of the Partnership or the Advisor's ability to perform its duties as advisor to the Partnership or (iv) any foreign bank which does not have physical presence in any country. (b) PATRIOT ACT COVENANTS. The Investor shall, in connection with its obligations under this Agreement, comply with all provisions applicable to it of the Trading with the Enemy Act (50 U.S.C. App §1 et. seq.), the foreign asset control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V) and any enabling legislation or Executive Order relating thereto and the anti-money laundering provisions of Title III of Public Law 107-56 (October 26, 2001, the USA PATRIOT ACT). (15) U.S. PERSON. check here if true: ; the Investor is a United States person within the meaning of Section 7701 of the Internal Revenue Code of 1986, (the "Code") (i.e., is not any of the following (as defined in the Code): a nonresident alien individual, foreign partnership, foreign corporation, foreign estate, foreign trust, other foreign entity or organization, or grantor trust having a foreign person as an owner). (16) FOR RESIDENTS OF MASSACHUSETTS: THE UNITS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES LAWS OF THE COMMONWEALTH OF MASSACHUSETTS AND MAY NOT BE SOLD OR TRANSFERRED UNLESS THE UNITS ARE SUBSEQUENTLY REGISTERED UNDER SUCH LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. IV. Conditions to the Closing. The Investor's obligation to purchase and pay for the Units is subject to the fulfillment, to the Investor's satisfaction, prior to or at the Closing, of the following conditions: fB1236635; 2) - 11 - Item # 5 Attachment number 2 Page 12 of 20 (1) The Advisor, the General Partner and the Partnership shall have performed and complied with all agreements and conditions required by this Agreement and the Memorandum to be performed or complied with by it prior to or at the Closing. (2) All proceedings, documents and instruments incident to the transactions contemplated hereby shall be satisfactory to the Investor and the Investor shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request. The obligation of the Partnership to sell and accept payment for the Units is subject to the fulfillment, to the Partnership's, the General Partner's and the Advisor's satisfaction, prior to or at the Closing, of the following condition: The Partnership shall have received and accepted Subscription Agreements for at least 1,000 Units on or before the Closing (which may include this Agreement). V. General. (1) This Agreement (i) shall be binding upon the Investor and its successors and assigns, (ii) shall inure to the benefit of the Partnership and its successors and assigns and (iii) and its validity and the validity of any of its terms or provisions, as well as the rights and duties of the parties to this Agreement, shall be governed by the laws of the State of Florida (without regard to any conflict of laws provisions) to the extent such laws have not been preempted by applicable federal law. Any action at law or in equity to enforce or interpret the provisions of this Agreement shall be brought in a federal or state court of competent jurisdiction in Pinellas County, Florida. Each party agrees that any such court shall have in personam jurisdiction over it and consents to service of process in any manner authorized by Florida law. (2) Except as provided in Section II, and in the Delivery Instructions accompanying this Agreement, all communications from the Partnership to the Investor or from the Investor to the Partnership shall be in writing, and shall be deemed effective when delivered in person or sent by a nationally recognized overnight courier, if to the Investor, addressed to the Investor at its address then appearing on the records of the Partnership or if to the Partnership, addressed to: Hancock Timberland XI LP c/o Hancock Natural Resource Group, Inc. 99 High Street, 26th Floor Boston, Massachusetts 02110-2320 Attn: Tim Cayen or such other address of which the Partnership or the Advisor notifies the Investor. (3) If the Investor acquires any additional Units, all applicable representations and warranties made herein shall be deemed to have been made by the Investor with respect to such interests or obligations. f 81236635; 2) - 2 - Item # 5 Attachment number 2 Page 13 of 20 (4) If any provision of this Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof which may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provision hereof. (5) All agreements, representations and warranties contained herein or made in writing by or on behalf of either party hereto in connection herewith shall survive the execution and delivery of this Agreement and the sale and purchase of the Units. (6) This Agreement and all terms hereof may be changed, waived, discharged or terminated only with the written consent of the Investor and the Partnership. (7) This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which taken together shall constitute one agreement. (8) The headings in this Agreement are for convenience of reference only, and shall not limit or otherwise affect the meaning hereof. (9) Neither this Agreement nor any amounts paid or payable as Unit Price hereunder by the Investor may be assigned by the Advisor, the General Partner or the Partnership without the consent of the Investor. fB1236635; 2) -13- Item # 5 Attachment number 2 Page 14 of 20 SUBSCRIPTION AGREEMENT SIGNATURE PAGE IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the 15th day of February, 2011. BOARD OF TRUSTEES OF THE EMPLOYEES' PENSION PLAN OF THE CITY OF CLEARWATER, FLORIDA By: Frank V. Hibbard Chairperson Approved as to form: Attest: Stuart A. Kaufman Rosemarie Call Pension Attorney City Clerk Investor Tax Identification No. 596000289 Telephone Number: (727)562-4532 FORM OF ENTITY: X_ Corporation Investor's Principal Business Partnership and Chief Executive Office Trust Address: Other, specify: 112 South Osceola Avenue Clearwater, Fl 33756 Investor's Jurisdiction of Organization or Formation: State of Florida fB1236635; 2) - 14 - Item # 5 Attachment number 2 Page 15 of 20 Aggregate Subscription for Units: US$8,000,000 All payments of distributions (all payments will be made in U.S. dollars) will be made by wire transfer. Wire Account Information: Acct. Name: City of Clearwater - Cash Account Acct. No.: 2616542 Bank Name: Northern Trust ABA number: 071000152 FFC Name: FFC number: Please send all original correspondence to (check one): _ the above address; or X the following address: Finance Director City of Clearwater PO Box 4748 Clearwater, FL 33758-4748 Interested party information Name: Title (if applicable): Company (if applicable): Address: Address: Phone: Email: Relationship to Investor (legal advisor, trustee, agent, consultant, etc.) fB1236635; 2) -15- Item # 5 Attachment number 2 Page 16 of 20 Please send the following reports: capital call notices distribution notices financial statements copies of tax forms upon request (K-1's, etc.) all correspondence Please attach a separate page for additional interested parties. fB1236635; 2) -16- Item # 5 Attachment number 2 Page 17 of 20 SUBSCRIPTION AGREEMENT SIGNATURE PAGE IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the 15th_ day of February, 2011. BOARD OF TRUSTEES OF THE EMPLOYEES' PENSION PLAN OF THE CITY OF CLEARWATER, FLORIDA By: Frank V. Hibbard Chairperson Approved as to form: Attest: Stuart A. Kaufman Rosemarie Call Pension Attorney City Clerk FORM OF ENTITY: _X Corporation Investor's Principal Business Partnership and Chief Executive Office Trust Address: Other; specify: 112 South Osceola Avenue Clearwater, Fl 33756 Investor's Jurisdiction of Organization or Formation: State of Florida fB1236635; 2) - 17 - Item # 5 Attachment number 2 Page 18 of 20 Aggregate Subscription for Units: US$8,000,000 All payments of distributions (all payments will be made in U.S. dollars) will be made by wire transfer. Wire Account Information: Acct. Name: City of Clearwater - Cash Account Acct. No.: 2616542 Bank Name: Northern Trust ABA number: 071000152 FFC Name: FFC number: Please send all original correspondence to (check one): _ the above address; or X the following address: Finance Director City of Clearwater PO Box 4748 Clearwater, FL 33758-4748 Interested party information Name: Title (if applicable): Company (if applicable): Address: Address: Phone: Email: Relationship to Investor (legal advisor, trustee, agent, consultant, etc.) fB1236635; 2) -18- Item # 5 Attachment number 2 Page 19 of 20 Please send the following reports: capital call notices distribution notices financial statements copies of tax forms upon request (K-1's, etc.) all correspondence Please attach a separate page for additional interested parties. fB1236635; 2) -19- Item # 5 Attachment number 2 Page 20 of 20 HANCOCK TIMBERLAND XI LP AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT SIGNATURE PAGE The undersigned, having received and reviewed the Confidential Private Placement Memorandum of Hancock Timberland XI LP dated December 9, 2010, as amended (the "Memorandum"), and the Amended and Restated Limited Partnership Agreement of Hancock Timberland XI LP (the "Partnership Agreement"), hereby becomes a party to the Partnership Agreement and agrees to all of the terms and provisions of the Partnership Agreement and to be bound by all of its terms and provisions. Executed this 15th day of February, 2011. LIMITED PARTNER: BOARD OF TRUSTEES OF THE EMPLOYEES' PENSION PLAN OF THE CITY OF CLEARWATER, FLORIDA By: Frank V. Hibbard Chairperson Approved as to form: Attest: Stuart A. Kaufman Rosemarie Call Pension Attorney City Clerk GENERAL PARTNER: John Hancock Timber Resource Corporation fB1236635; 2) By: _ Name: Title: -20- Item # 5