Exhibit 10.39

 

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TO:    C. William Hosler FROM:    Nelson C. Rising DATE:    February 16, 2005
SUBJECT:    Amendment No. 1 to Amended and Restated Memorandum of Understanding
regarding Employment

 

This Amendment No.1 sets forth additional terms of your employment and amends
your Amended and Restated Memorandum of Understanding dated March 26, 2004
(“Memorandum”) with Catellus Commercial Development Corporation (“CCDC” or the
“Company”), a subsidiary of Catellus Operating Limited Partnership (the
“Operating Partnership”) and an indirect subsidiary of Catellus Development
Corporation (“Catellus”).

 

Whereas, the Board of Directors of Catellus is currently considering a
succession plan for its Chairman and Chief Executive Officer, who is anticipated
to retire on or about January 1, 2008;

 

Whereas, Catellus has determined it to be in its best interests to provide
retention incentives to members of senior management to ensure a stable
management team during the succession deliberations and transition;

 

Whereas, on February 16, 2005, Catellus awarded 56,318 shares of restricted
stock to you as a retention incentive, which vest 20%, 20% and 60% on December
31, 2005, 2006 and 2007, respectively (“Retention Award”); and

 

Whereas, you have agreed to enter into the following covenants, as a condition
of receipt of the Retention Award.

 

1. Capitalized Terms. Capitalized terms used but not otherwise defined herein
shall have the meanings assigned to them in the Memorandum.

 

2. Non-solicitation. You agree that during the term of your employment and for
one (1) year thereafter, you shall not solicit or attempt to solicit in any way
any individual employed by the Company, or any of its affiliates, to become an
employee of any other employer or business, without the prior written approval
of Catellus’ Chief Executive Officer.

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3. Non-disparagement. You agree that both while the Company or any of its
affiliates employs you and after the Date of Termination you shall not make any
false, defamatory or disparaging statements about the Company or any of its
affiliates, or the officers or directors of the Company or any of its
affiliates. Both while you are employed by the Company and after our Date of
Termination, the Company, agrees, on behalf of itself and its affiliates, that
neither the officers nor the directors of the Company or its affiliates shall
make any false, defamatory or disparaging statements about you.

 

4. Effect of Amendment. Except as expressly amended hereby, all the terms and
conditions of the Memorandum shall remain in full force and effect. No
amendments to the Memorandum may be made except by writing signed by you and the
Company.

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 to
Amended and Restated Memorandum of Understanding as of the day and year first
above written.

 

CATELLUS COMMERCIAL DEVELOPMENT CORPORATION      

CATELLUS OPERATING LIMITED PARTNERSHIP,

a Delaware limited partnership

By:  

Catellus Operating Limited

Partnership, a Delaware limited

                    partnership, its sole stockholder       By:   Catellus
Development Corporation,                         a Delaware corporation, its
general partner     By:  

Catellus Development

Corporation, a Delaware

                        corporation, its general partner           By:  

/s/ Nelson C. Rising

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Nelson C. Rising

Chairman of the Board and

        By:  

/s/ Nelson C. Rising

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              Chief Executive Officer            

Nelson C. Rising

Chairman of the Board and

Chief Executive Officer

               

CATELLUS DEVELOPMENT CORPORATION,

a Delaware corporation

      ACCEPTED AND AGREED:                     By:  

/s/ C. William Hosler

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C. William Hosler

By:  

/s/ Nelson C. Rising

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Nelson C. Rising

Chairman of the Board and

Chief Executive Officer

      Date: February 25, 2005

 

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