Form of Amended Participation Agreement



 






EXHIBIT 10.1




AMENDMENT TO PARTICIPATION LETTER




     The Participation Letter dated January 13, 2005 from Benjamin C. Bishop, Jr., on behalf
of CRT Properties, Inc., to (the “Executive) is hereby amended by deleting the
second full paragraph on page 2 and substituting therefor the following:




     “If a Change in Control occurs during 2005 (or 2006 pursuant to an agreement
reached in 2005) and your employment is terminated by the Company without Cause (as
defined below) or you resign for Good Reason (as defined below), you shall be
entitled to an amount, payable in a lump sum as soon as practicable following the
date of your termination, equal to two times the sum of your annual base salary at
the rate in effect as of the date of your termination and an amount equal to the
average annual cash bonus earned by you for the three calendar years prior to the
date of termination (or actual number of calendar years of employment if fewer than
three, with bonuses annualized for any year of employment of less than 12 months),
provided that you execute, deliver and do not revoke (within the time period
permitted by applicable law) a general release substantially in the form attached
hereto as Appendix I.




     ‘Cause’ exists if you are convicted of, or plead guilty or nolo contendere to,
a felony (other than a felony involving a traffic violation or as a result of
vicarious liability) or if you engage in willful misconduct with regard to the
Company that has a material adverse effect on the Company. Misconduct will not be
deemed ‘willful’ unless you engage in it in bad faith and without a reasonable
belief that it is in, or not opposed to, the interests of the Company.




     ‘Good Reason’ exists if any of the following events occurs:




          (i) an adverse change, not consented to by you, in the nature or scope of your
responsibilities, authorities, powers, functions or duties from the
responsibilities, authorities, powers, functions or duties exercised by you
immediately prior to the Change in Control; or




          (ii) a reduction in your annual base salary or a material reduction in your
annual or long-term incentive opportunity as in effect on the date hereof or as the
same may be increased from time to time hereafter; or




          (iii) the relocation of the Company’s offices at which you are principally
employed immediately prior to the date of a Change in Control to any other location
more than 35 miles away; or




          (iv) the failure by the Company to obtain an effective agreement from any
successor to assume and agree to perform this Agreement.




     In the event that any payment of benefit made or provided to or for your
benefit in connection with this Agreement, your employment with the Company, or any
termination of such employment (a ‘Payment’) is determined to be subject



 









 






to any excise tax (‘Excise Tax’) imposed by Section 4999 of the Internal Revenue
Code of 1986 (or any successor to such Section), you shall be entitled to receive,
prior to the time any Excise Tax is payable with respect to such Payment (through
withholding or otherwise), an additional amount which, after the imposition of all
income, employment, excise and other taxes thereon, is equal to the sum of the
Excise Tax on such Payment plus any penalty and interest assessments
associated with such Excise Tax. The determination of whether any Payment is
subject to an Excise Tax and, if so, the amount to be paid to you and the time of
payment shall be made by an independent auditor (the ‘Auditor’) paid by the Company.
The Auditor shall be a nationally recognized United States public accounting firm
selected by the Company unless you reasonably object to the use of that firm, in
which event the Auditor shall be a nationally recognized United States public
accounting firm chosen by you in consultation with the Company. You agree to
cooperate with the Company in connection with any proceeding or claim relating to
the existence or amount of any liability for Excise Tax. All expenses relating to
any such proceeding or claim (including reasonable attorneys’ fees and other
expenses incurred by you in connection therewith) will be paid by the Company,
promptly upon your request, and any such payment shall (for the avoidance of doubt)
be subject to gross-up under this Agreement in the event that you are subject to
Excise Tax on it.”



     Executed this 17th day of June, 2005 by and between CRT Properties, Inc. and by the
Executive.



	 	 	 	 	 
	 	CRT PROPERTIES, INC.

 	 
	 	By:  	/s/
 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	 	 
	 	
 	 
	 	Executive