Document:

Exhibit 10.2

 

Execution Copy

 

THE HOWARD HUGHES CORPORATION

WARRANT PURCHASE AGREEMENT

 

Purchaser: Grant Herlitz

 

Date
of Purchase: November 22, 2010

 

Purchase
Price: $2,000,000

 

Number
of Shares Underlying Warrant: 315,731

 

Exercise
Price Per Share: $42.23

 

THE
HOWARD HUGHES CORPORATION, a Delaware corporation (the “Corporation”), is
pleased to give you the opportunity to purchase a Warrant (the “Warrant”) to purchase
shares of the Corporation’s authorized common stock, par value $0.01 per share,
subject to the terms and conditions set forth in this Warrant Purchase
Agreement (this “Agreement”).  The purchase of the Warrant is specifically
conditioned upon the execution by you of this Agreement.  The Date of Purchase of the Warrant, the
number of shares issuable upon exercise of the Warrant (the “Warrant Shares”), and the Exercise
Price per share are stated above.  The
Purchase Price shall be paid to the Corporation no later than 5 Business Days
following the Date of Purchase and if not so paid this Agreement shall
terminate without further action.  This
Agreement was entered into prior to your election as President of the
Corporation and is not governed by The Howard Hughes Corporation 2010 Equity
Incentive Plan.

 

This Agreement sets forth the terms of the agreement between
you and the Corporation with respect to the Warrant.  By accepting this Agreement, you agree to be
bound by all of the terms hereof.

 

1.     Definitions.  As
used in this Agreement, the following terms have the meanings set forth below:

 

(a)   “Board of Directors”
means the board of directors of the Corporation.

 

(b)   “Business Day” means
any day other than a Saturday, a Sunday or a day on which banking institutions
in the State of Delaware are authorized or obligated by law or executive order
to close.

 

(c)   “Cause”
shall mean, as determined in good faith by a unanimous vote (excluding you if
you are a member of the Board of Directors) of the Board of Directors at a
meeting of the Board of Directors held for such purpose, and where you and your
counsel had an opportunity (on at least 15 days prior notice) to be heard
before the Board of Directors, your:

 

(i)            conviction, plea of guilty or no contest to any felony;

 

(ii)           gross negligence or willful misconduct in the performance of your
duties;

 

 

(iii)          drug addiction or habitual intoxication;

 

(iv)          commission of fraud, embezzlement, misappropriation of funds, breach of
fiduciary duty, violation of law, or a material act of dishonesty against the
Corporation, in each case that the Board of Directors determines was willful;

 

(v)           material and continued breach of the Employment Agreement, after notice
for substantial performance is delivered by the Corporation in writing that
identifies in reasonable detail the manner in which the Corporation believes
you are in breach of this Employment Agreement;

 

(vi)          willful material breach of Corporation policy or code of conduct; or

 

(vii)         willful and continued failure to substantially perform your duties
under the Employment Agreement (other than such failure resulting from your
incapacity due to physical or mental illness);

 

unless,
in each case, the event constituting Cause is curable and has been cured by you
within 30 days of your receipt of notice from the Corporation that an event
constituting Cause has occurred and specifying the details of such event.  If you cure an event during such period that
would otherwise constitute Cause, then the Corporation will have no right to
terminate your employment for Cause.  For
purposes of this provision, no act or omission on your part shall be considered
“willful” unless it is done or
omitted not in good faith or without reasonable belief that the act or omission
was in the best interests of the Corporation. 
Any act or omission based upon a resolution duly adopted by the Board of
Directors or advice of counsel for the Corporation shall be conclusively
presumed to have been done or omitted in good faith and in the best interests
of the Corporation.

 

(d)   “Change in Control”
means the occurrence of any of the following events:

 

(i)            A “change in the ownership of the Corporation” which shall occur on the
date that any one person, or more than one person acting as a group, excluding
Pershing Square Management, L.P. and its Affiliates (as defined under the
Securities Act of 1933), acquires ownership of stock in the Corporation that,
together with stock held by such person or group, constitutes more than 50% of
the total fair market value or total voting power of the stock of the
Corporation; however, if any one person or more than one person acting as a
group, is considered to own more than 50% of the total fair market value or
total voting power of the stock of the Corporation, the acquisition of
additional stock by the same person or persons will not be considered a “change
in the ownership of the Corporation” (or to cause a “change in the effective
control of the Corporation” within the meaning of Section 1(d)(ii) below)
and an increase of the effective percentage of stock owned by any one person,
or persons acting as a group, as a result of a transaction in which the
Corporation acquires its stock in exchange for property will be treated as an
acquisition of stock for purposes of this paragraph; provided further, however,
that for purposes of this Section 1(d)(i), the following acquisitions
shall not constitute a Change in Control: 
(A) any acquisition by any employee benefit plan (or 

 

2

 

related
trust) sponsored or maintained by the Corporation or any entity controlled by
the Corporation, or (B) any acquisition by investors (immediately prior to
such acquisition) in the Corporation for financing purposes, as determined by
the Board of Directors in its sole discretion. 
This Section 1(d)(i) applies only when there is a transfer of
the stock of the Corporation (or issuance of stock) and stock in the
Corporation remains outstanding after the transaction.

 

(ii)           A “change in the effective control of the Corporation” which shall
occur on the date that either (A) any one person, or more than one person
acting as a group, excluding Pershing Square Management, L.P. and its
Affiliates, acquires (or has acquired during the twelve month period ending on
the date of the most recent acquisition by such person or persons) ownership of
stock of the Corporation possessing 35% or more of the total voting power of
the stock of the Corporation, except for (1) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the
Corporation or any entity controlled by the Corporation, or (2) any
acquisition by investors (immediately prior to such acquisition) in the
Corporation for financing purposes, as determined by the Board of Directors in
its sole discretion; or (B) a majority of the members of the Board of
Directors are replaced during any twelve-month period by directors whose
appointment or election is not endorsed by a majority of the members of the
Board of Directors prior to the date of the appointment or election.  For purposes of a “change in the effective
control of the Corporation,” if any one person, or more than one person acting
as a group, is considered to effectively control the Corporation within the
meaning of this Section 1(d)(ii), the acquisition of additional control of
the Corporation by the same person or persons is not considered a “change in
the effective control of the Corporation,” or to cause a “change in the
ownership of the Corporation” within the meaning of Section 1(d)(i) above.

 

(iii)          The occurrence of any of the transactions contemplated by Section 1(d)(i) or
1(d)(ii) above (including any acquisition by Pershing Square Management,
L.P. or its Affiliates), in connection with which the stock of the Corporation
ceases to be publicly traded on a national securities exchange.

 

(iv)          A “change in the ownership of a substantial portion of the Corporation’s
assets” which shall occur on the date that any one person, or more than one
person acting as a group, excluding Pershing Square Management, L.P. and its
Affiliates, acquires (or has acquired during the twelve month period ending on
the date of the most recent acquisition by such person or persons) assets of
the Corporation that have a total gross fair market value equal to or more than
60% of the total gross fair market value of all the assets of the Corporation
immediately prior to such acquisition or acquisitions; provided that the
proceeds of such acquisition or acquisitions are distributed to the
shareholders of the Corporation in connection with such acquisition or
acquisitions.  For this purpose, gross
fair market value means the value of the assets of the Corporation, or the
value of the assets being disposed of, determined without regard to any
liabilities associated with such assets. 
Any transfer of assets to an entity that is controlled by the shareholders
of the Corporation immediately after the transfer, as provided in guidance
issued pursuant to Section 409A of the Code, shall not constitute a Change
in Control.

 

3

 

For purposes of this Section 1(d), the
provisions of Section 318(a) of the Code regarding the constructive
ownership of stock will apply to determine stock ownership; provided, that
stock underlying unvested options (including options exercisable for stock that
is not substantially vested) will not be treated as owned by the individual who
holds the option.  In addition, for
purposes of this Section 1(d), “Corporation” includes (A) the
Corporation and (B) an entity that is a stockholder owning more than 50%
of the total fair market value and total voting power (a “Majority Shareholder”) of the Corporation, or
any entity in a chain of entities in which each entity is a Majority
Shareholder of another entity in the chain, ending in the Corporation

 

(e)   “Code” means the
Internal Revenue Code of 1986, as amended.

 

(f)    “Common Stock” means
the authorized common stock, par value $0.01 per share, as described in the
Corporation’s Certificate of Incorporation.

 

(g)   “Date of Purchase”
means the date designated as such in the first paragraph of this Agreement.

 

(h)   “Disability”
means the good faith determination by the Board of Directors that you are
permanently disabled.

 

(i)    “Employment
Agreement” means the employment agreement entered into between
the Corporation and Grant Herlitz on November 22, 2010.

 

(j)    “Exchange Act” means
the Securities Exchange Act of 1934.

 

(k)   “Exercise Notice”
means the written exercise notice in the form provided by the Board of
Directors.

 

(l)    “Exercise Price” means
the exercise price per share designated as such in the first paragraph of this
Agreement.

 

(m)  “Expiration Date”
means November 21, 2017.

 

(n)   “Fair Market Value”
per share of Common Stock on any relevant date shall be determined in
accordance with the following provisions:

 

(i)            If the Common Stock is at
the time traded on NYSE, then the Fair Market Value shall be the closing
selling price per share of Common Stock on the date in question, as the price
is reported by the National Association of Securities Dealers on NYSE.  If there is no closing selling price for the
Common Stock on the date in question, then the Fair Market Value shall be the
closing selling price on the last preceding date for which such quotation
exists.

 

(ii)           If the Common Stock is at
the time listed on any stock exchange, then the Fair Market Value shall be the
closing selling price per share of Common Stock on the date in question on the
stock exchange determined by the Board of Directors to be the primary market
for the Common Stock, as such price is officially quoted in the composite tape
of transactions on such exchange.  If
there is no closing selling price for the Common Stock on the 

 

4

 

date in question, then the Fair Market Value shall
be the closing selling price on the last preceding date for which such
quotation exists.

 

(iii)          If the Common Stock is at
the time neither listed on any stock exchange nor traded on NYSE, then the Fair
Market Value shall be determined in good faith by the Board of Directors after
taking into account such factors as the Board of Directors shall deem
appropriate.

 

(o)   “Good
Reason” shall mean the occurrence of any of the following events
without your written consent:

 

(i)            a material diminution in
your base compensation;

 

(ii)           a material diminution in
your authority, duties or responsibilities;

 

(iii)          you no longer report
directly to the Chief Executive Officer or the Board of Directors; or

 

(iv)          any other action or inaction
that constitutes a material breach by the Corporation of the Employment
Agreement;

 

provided that, in each case, you must provide a
notice of termination to the Corporation within 60 days of the initial
occurrence of the event constituting Good Reason, and the Corporation shall
have the opportunity to cure such event within 30 days of receiving such
notice.  If the Corporation cures an
event during such period that would otherwise constitute Good Reason, then you
will have no right to terminate your employment for Good Reason.  Following the occurrence of a Change in
Control, any claim by you that Good Reason exists shall be presumed to be
correct unless a court of competent jurisdiction determines that the
Corporation has established by clear and convincing evidence that Good Reason
does not exist.

 

(p)   “Immediate Family”
means your child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law or sister-in-law, including
adoptive relationships.

 

(q)   “NYSE”
means The New York Stock Exchange.

 

2.     Vesting and Exercisability.  This Warrant will be fully vested at the time
of purchase.  Except as provided in Section 3,
you may only exercise your Warrant after the sixth year anniversary of the
Purchase Date (November 22, 2016) and before the Expiration Date.  To the extent it has not already been
exercised, the Warrant shall terminate on the Expiration Date.

 

3.     Special Lifting of Restrictions and Change in Control.

 

(a)          Immediately
prior to the effective date of a Change in Control or upon the date of a
termination of your employment by the Company without Cause or by you for Good
Reason, the Warrant shall be immediately exercisable and transferable,
notwithstanding the restrictions enumerated in Section 2.

 

(b)   Notwithstanding the
provisions of Section 6, in the event of a termination of your employment
by reason of your death or Disability, you or your estate (as the case may be) 

 

5

 

may sell the Warrant to a third party; provided, however,
that all terms and restrictions applicable to the Warrant prior to the sale
shall continue to apply to the Warrant after the sale to a third party
purchaser.

 

(c)   In the event of a Change in
Control, you shall elect that either:

 

(i)            this Warrant be assumed by
the successor entity in connection with a Change in Control, in which case this
Warrant shall be appropriately adjusted, immediately after such Change in
Control, to apply to the number and class of securities which would have been
issuable to you upon the consummation of such Change in Control had the Warrant
been exercised immediately prior to such Change in Control, and appropriate
adjustments shall also be made to the Exercise Price, provided the aggregate
Exercise Price shall remain the same, or

 

(ii)           this Warrant terminate and
cease to be outstanding, in which case the successor entity shall pay to you
upon the Change in Control an amount equal to the product of (A) the per
share consideration paid to the shareholders of the Corporation by the
successor entity in conjunction with the Change in Control, and (B) the
number of Shares underlying the unexercised portion of this Warrant on the date
of the Change in Control, minus the cumulative Exercise Price for those Warrant
Shares.

 

(d)   Subject to Section 5,
this Agreement shall not in any way affect the right of the Corporation to
adjust, reclassify, reorganize, otherwise change its capital or business
structure, to merge, consolidate, dissolve, liquidate, or sell or transfer all
or any part of its business or assets, and in any such transaction involving
only cash consideration you shall be deemed to have elected to receive cash
pursuant to Section 3(c)(ii) if so provided in the agreement
providing for such transaction.

 

4.     Exercise of Warrant.

 

(a)          In order to
exercise this Warrant with respect to all or any part of the Warrant Shares for
which this Warrant is exercisable, you (or any other person or persons
exercising the Warrant in accordance with the terms hereof) must take the
following actions:

 

(i)            Execute and deliver to the
Corporation an Exercise Notice for the Warrant Shares for which the Warrant is
exercised (the “Purchased Shares”) which
Exercise Notice (1) states the number of Purchased Shares (which must be a
whole number of shares) and (2) is signed or otherwise given by you (or
any other authorized person exercising the Warrant).

 

(ii)           Pay the aggregate Exercise
Price for the Purchased Shares, at the time of delivery of the Exercise Notice,
(1) in cash or an equivalent means acceptable to the Corporation, or (2) with
shares of Common Stock owned by you (including shares received upon exercise of
the Warrant or restricted shares, if any, already held by you) and having a
Fair Market Value at least equal to the aggregate Exercise Price for the shares
of Common Stock to which the Warrant is being exercised, or (3) by any
combination of clauses (1) and (2), or (4) by net issue exercise,
pursuant to which the Corporation will issue to you a number of shares of
Common Stock as to which the Warrant is exercised, less a number of shares with
a Fair Market Value as of the date of exercise equal to the Exercise
Price.  The number of shares to settle
the transaction shall be the gross number of shares (subject to the
transaction, e.g., 315,731 in the case of a full exercise), multiplied by the
Exercise Price, and divided by the SA (as defined 

 

6

 

below).  If
shares of Common Stock are used for payment of all or any portion of the
Exercise Price, then (for purposes of payment of the Exercise Price) those
shares of Common Stock shall be deemed to have a cash value equal to their
aggregate Fair Market Value determined as of the date of the delivery of the
Exercise Notice, giving effect to all purchases of Warrant Shares.

 

(iii)          Certify in a writing
reasonably acceptable to the Corporation that you have complied with the
provisions of Section 6 hereof at all times since the Date of Purchase
and, if the Warrant is exercised in respect of fewer than the total Warrant
Shares to which this Warrant then relates, that you will continue to comply
with such covenants in respect of the Warrant Shares which remain subject to
this Warrant.

 

(b)   Notwithstanding any other
provision hereof, the number of shares of Common Stock that you shall receive
upon a full or partial exercise of the Warrant shall be adjusted upward or
downward, as the case may be, based upon the following formula:

 

QA = (SA — K) x Q / ST

 

Where:

 

·      QA is the adjusted number of shares of Common Stock
to be received, rounded to the nearest whole number.

·      SA is the average reported closing sales price
for the Common Stock over the 22 most recent days of trading on a stock
exchange, if so traded, ending on the last trading day prior to the date of the
Corporation’s receipt of a Notice of Exercise (the “Exercise
Date”). If the Warrant Shares are not traded on a national
securities exchange on the Exercise Date, then the value of such Warrant Shares
for the purposes of this Section 4(b) shall be deemed to be the Fair
Market Value.

·      K is the
Exercise Price.

·      Q is the
unadjusted number of shares of Common Stock.

·      ST is the Fair Market Value of the Warrant Shares
on the last trading day prior to the Exercise Date.

 

For
purposes of clarity, if QA calculated as above results in a
negative number, it shall be set to zero.

 

For
example, if you held a warrant to purchase 100 Warrant Shares with an exercise
price of $5, the Fair Market Value of the Warrant Shares on the Exercise Date
was $10, and the average trading price over the last 22 trading days was $11,
then you would receive $600 worth of Common Stock or 60 shares of Common Stock;
conversely, if the average trading price over the last 22 trading days was $9,
you would receive $400 worth of Common Stock or 40 shares of Common Stock.

 

(c)   As soon as practicable after
the Exercise Date, the Corporation shall issue to or on behalf of the Warrant
holder (or any other person or persons exercising this Warrant in accordance
with the terms hereof) a certificate for the purchased Warrant Shares, with the
appropriate legends affixed thereto.

 

7

 

(d)   In no event may this Warrant
be exercised for any fractional shares. 
Fractional shares shall be satisfied in cash.

 

The
Warrant shall not be deemed to have been exercised unless all of these
requirements are satisfied.

 

5.     Adjustment Provisions.  The number of shares of Common Stock that may
be acquired under the Warrant, shall be subject to adjustment, from time to
time, in accordance with the following provisions:

 

(a)   If at any time or from time
to time, the Corporation shall subdivide as a whole (by reclassification, by a
stock split, by the issuance of a distribution on stock payable in stock or
otherwise, including a dividend designated as such by the Board of Directors)
the number of shares of Common Stock then outstanding into a greater number of
shares of Common Stock, then (a) the number of shares of Common Stock that
may be acquired under the Warrant shall be increased proportionately and (b) the
Exercise Price for each share of Common Stock subject to the Warrant shall be
reduced proportionately, without changing the aggregate purchase price as to
which the Warrant remains exercisable.

 

(b)   If at any time or from time
to time, the Corporation shall consolidate as a whole (by reclassification,
reverse stock split, or otherwise) the number of shares of Common Stock then
outstanding into a lesser number of shares of Common Stock, then (a) the
number of shares of Common Stock that may be acquired under the Warrant shall
be decreased proportionately, and (b) the Exercise Price for each share of
Common Stock subject to the Warrant shall be increased proportionately, without
changing the aggregate purchase price or value as to which the Warrant remains
exercisable.

 

(c)   Should any other change be
made to the Common Stock by reason of any exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation’s
receipt of consideration, appropriate adjustments shall be made to the class of
securities subject to this Warrant in such manner and to the extent deemed
appropriate by the Board of Directors.

 

(d)   Whenever the number of
shares of Common Stock subject to the Warrant is required to be adjusted as
provided in this Section 5, the Corporation shall, within 30 days
following such adjustment, prepare and give to you a written notice setting
forth, in reasonable detail, the event requiring adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the change
in price and the number of shares of Common Stock, other securities, cash or
property purchasable subject to the Warrant after giving effect to the
adjustment.

 

(e)   Adjustments under Section 5(a),
(b) and (c) shall be made by the Board of Directors, and its
determination as to what adjustments shall be made and the extent thereof shall
be final, binding and conclusive.  No
fractional interest shall be issued on account of any such adjustments.

 

6.     Transferability.  This Warrant may be assigned
in whole or in part during your lifetime either as (a) a gift to one or
more members of your Immediate Family or to a trust in 

 

8

 

which you and/or one or more such family members
hold more than 50% of the beneficial interest or (b) pursuant to a
domestic relations order.  The assigned
portion shall be exercisable only by the person or persons who acquire a
proprietary interest in the Warrant pursuant to such assignment.  The terms applicable to the assigned portion
shall be the same as those in effect for this Warrant immediately prior to such
assignment and shall be set forth in such documents issued to the assignee as
the Board of Directors may deem appropriate. Except for assignments to a person
or an entity expressly permitted pursuant to the first sentence of Section 6(a) above
(a “Permitted Transferee”), the Warrant
may not be assigned, transferred, pledged, or otherwise hypothecated by you or
any Permitted Transferee.  Additionally,
you or any Permitted Transferee may not hedge or enter into any derivative or
other transaction in respect of the Warrant Shares (the intention of the
parties being that you, together with any Permitted Transferee, shall maintain
a net long position in respect of the Warrant Shares).  You shall (i) cause any Permitted
Transferee to comply with the covenants herein and (ii) upon the written
request of the Corporation certify as to your compliance with the covenants
herein from time to time. Notwithstanding anything to the contrary herein, the
covenants and limits on transferability in this Section 6 shall terminate
on the earliest of (x) November 22, 2016, (y) your termination
of employment by the Corporation without Cause, or a termination by you for
Good Reason, or (z) a Change in Control.

 

7.     Delivery of Certificates of Stock.  After the exercise of the Warrant the
Corporation shall promptly issue and deliver a certificate representing the
number of shares of Common Stock as to which the Warrant has been exercised
after the Corporation receives (a) the Exercise Notice, (b) payment
of the Exercise Price, and (c) any tax withholding as may be
requested.  The value of the shares of
Common Stock shall not bear any interest owing to the passage of time.

 

8.     Rights as a Stockholder.  You shall have no right as a stockholder with
respect to any shares covered by this Agreement unless and until a certificate
representing those shares is issued in your name.

 

9.     Rights Offerings.

 

If at any time the
Corporation shall distribute rights or warrants to all or substantially all
holders of its Common Stock entitling them, for a period of not more than 45
days, to subscribe for or purchase shares of Common Stock at a price per share
less than the Fair Market Value of the Common Stock on the last trading day
preceding the date on which the Board of Directors declares such distribution
of rights or warrants, the Exercise Price in effect immediately prior to the
close of business on the record date for such distribution shall be reduced
immediately thereafter to the price determined by multiplying such Exercise
Price by the quotient of (x) the number of shares of Common Stock
outstanding at the close of business on such record date plus the number of
shares of Common Stock which the aggregate of the offering price of the total
number of shares of Common Stock so offered for subscription or purchase would
purchase at such Fair Market Value divided by (y) the number of shares of
Common Stock outstanding at the close of business on such record date plus the
number of shares of Common Stock so offered for subscription or purchase. 
In such event, the number of shares of Common Stock issuable upon the exercise
of the Warrant as in effect immediately prior to the close of business on such
record date shall be increased immediately thereafter to the amount determined
by multiplying such number by the quotient of (x) the Exercise Price in
effect immediately prior to the adjustment contemplated by the immediately
preceding sentence divided by (y) the new Exercise Price determined in
accordance with the immediately preceding sentence.  In case any rights or

 

9

 

warrants referred to in this Section 9 in respect
of which an adjustment shall have been made shall expire unexercised and any
shares that would have been underlying such rights or warrants shall not have
been allocated pursuant to any backstop commitment or any similar arrangement,
the Exercise Price and the number of shares of Common Stock issuable upon
exercise of the Warrant then in effect shall be readjusted at the time of such
expiration to the Exercise Price that would then be in effect and the number of
Shares that would then be issuable upon exercise of the Warrant if no
adjustment had been made on account of such expired rights or warrants.

 

10.   Tender or
Exchange Offers.

 

If the Corporation or any
subsidiary of the Corporation shall consummate a tender or exchange offer for
all or any portion of the Common Stock for a consideration per share with a
Fair Market Value greater than the Fair Market Value of the Common Stock on the
date such tender or exchange offer is first publicly announced (the “Announcement Date”), the
Exercise Price in effect immediately prior to the expiration date for such
tender or exchange offer shall be reduced immediately thereafter to the price
determined by multiplying such Exercise Price by the quotient of (x) the
Fair Market Value of the Common Stock on the Announcement Date minus the
Premium Per Post-Tender Share divided by (y) the Fair Market Value of the
Common Stock on the Announcement Date.  In such event, the number of
shares of Common Stock issuable upon the exercise of the Warrant as in effect
immediately prior to such expiration date shall be increased immediately
thereafter to the amount determined by multiplying such number by the quotient
of (x) the Exercise Price in effect immediately prior to the adjustment
contemplated by the immediately preceding sentence divided by (y) the new
Exercise Price determined in accordance with the immediately preceding
sentence.  As used in this Section 10 with respect to any tender or
exchange offer, “Premium
Per Post-Tender Share” means the quotient of (x) the amount
by which the aggregate Fair Market Value of the consideration paid in such
tender or exchange offer exceeds the aggregate Fair Market Value on the
Announcement Date of the shares of Common Stock purchased therein divided by
(y) the number of shares of Common Stock outstanding at the close of
business on the expiration date for such tender or exchange offer (after giving
pro forma effect to the purchase of shares being purchased in the tender or
exchange offer).

 

11.   Furnish
Information.  You shall
furnish to the Corporation all information requested by the Corporation to
enable it to comply with any reporting or other requirement imposed upon the
Corporation by or under any applicable statute or regulation.

 

12.   Registration
and Listing of Warrant Shares.  The Corporation shall file a registration
statement with the Securities and Exchange Commission to register the sale of
Warrant Shares as soon as reasonably practicable, but no later than 20 Business
Days after the date that the Corporation files its first Form 10-K.  The Corporation will file a listing
application for listing on NYSE with respect to the Warrant Shares as soon as
practicable after the date hereof, but no later than 20 Business Days after the
date that the Corporation files its first Form 10-K.

 

13.   Obligation
to Exercise.  The purchase
of the Warrant through this Agreement shall impose no obligation upon you to
exercise the same or any part thereof.

 

10

 

14.   Remedies.  You shall be entitled to recover from the
Corporation reasonable fees incurred in connection with the enforcement of the
terms and provisions of this Agreement, whether by an action to enforce
specific performance or for damages for its breach or otherwise.

 

15.   Right of
the Corporation and Subsidiaries to Terminate Employment.  Nothing contained in this Agreement shall
confer upon you the right to continue in the employ of the Corporation or any
subsidiary, or interfere in any way with the rights of the Corporation or any
subsidiary to terminate your employment at any time.

 

16.   Exchange
Act Compliance.  The Board of
Directors shall take all steps necessary to ensure that the purchase and
exercise of the Warrant are exempt from Section 16(b) of the Exchange
Act.

 

17.   No
Guarantee of Interests.  The Board of Directors and the Corporation do
not guarantee the Common Stock of the Corporation from loss or depreciation.

 

18.   Corporation
Action.  Any action
required of the Corporation shall be by resolution of its Board of Directors or
by a person or committee authorized to act by resolution of the Board of
Directors.

 

19.   Severability.  If any provision of this Agreement is for any
reason held to be illegal, invalid, or to violate any law or listing
requirement applicable to the Corporation, the illegality, invalidity, or
violation shall not affect the remaining provisions hereof, but such provision
shall be fully severable and this Agreement shall be construed and enforced as
if the illegal or invalid provision had never been included herein and you and
the Corporation shall amend this Agreement, preserving, to the maximum extent
reasonably possible, the intended economic effects of this Agreement as
executed by the parties hereto.

 

20.   Notices.  Whenever any notice is required or permitted
hereunder, such notice must be in writing and personally delivered or sent by
electronic facsimile transmission.  Any
such notice required or permitted to be delivered hereunder shall be deemed to
be delivered on the next Business Day after which it is personally delivered or
transmitted by electronic facsimile to the person who is to receive it at the
address which such person has theretofore specified by written notice delivered
in accordance herewith.

 

The
Corporation and you agree that any notices shall be given to the Corporation or
to you at the following addresses; provided that the Corporation or you may
change, at any time and from time to time, by written notice to the other, the
address which it or he had previously specified for receiving notices.

 

	
  Corporation:

  	
  The
  Howard Hughes Corporation

  
	
   

  	
  One
  Galleria Tower

  
	
   

  	
  13355
  Noel Road, Suite 950

  
	
   

  	
  Dallas,
  Texas  75240

  
	
   

  	
  Attn:
  Office of the General Counsel

  
	
   

  	
   

  
	
  with
  a copy to:

  	
  William
  A. Ackman, Chairman of the Board

  
	
   

  	
  888
  Seventh Avenue, 42nd Floor

  

 

11

 

	
   

  	
  New
  York, NY 10019

  
	
   

  	
   

  
	
  Holder:

  	
  At
  your current address as shown in the Corporation’s records.

  

 

21.   Waiver of
Notice.  Any person
entitled to notice hereunder may waive such notice.

 

22.   Successors.  This Agreement shall be binding upon you,
your legal representatives, heirs, legatees and distributees, and upon the
Corporation, its successors and assigns.

 

23.   Headings.  The titles and headings of Sections are
included for convenience of reference only and are not to be considered in
construction of the provisions hereof.

 

24.   Governing
Law.  All
questions arising with respect to the provisions of this Agreement shall be
determined by application of the laws of the State of Delaware except to the
extent Delaware law is preempted by federal law.

 

25.   Word Usage.  Words used in the masculine shall apply to
the feminine where applicable, and wherever the context of this Agreement
dictates, the plural shall be read as the singular and the singular as the
plural.

 

[THE REMAINDER OF THIS PAGE HAS BEEN LEFT
INTENTIONALLY BLANK]

 

12

 

IN WITNESS WHEREOF, the Corporation has caused
this Agreement to be executed by its duly authorized officer as of the Date of
Purchase first above written.

 

	
   

  	
  THE
  HOWARD HUGHES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gary Krow

  
	
   

  	
   

  	
  Gary Krow,

  
	
   

  	
   

  	
  Chairman of the Compensation Committee

  

 

 

ACKNOWLEDGED AND AGREED:

 

 

	
  /s/
  Grant Herlitz

  	
   

  

 

Grant Herlitz

 

13

 

APPENDIX A

 

SECTION 83(b) ELECTION

 

This
statement is made under Section 83(b) of the Internal Revenue Code of
1986, as amended, pursuant to Treasury Regulations Section 1.83-2.

 

1.             The taxpayer who purchased
the property is:

 

Name:  Grant Herlitz

 

Address:                                                            

 

                                                                           

 

Social
Security No.:                                          

 

2.             The property with respect to
which the election is made is a warrant (the “Warrant”) to purchase 315,731
shares of the common stock, par value $0.01 per share, (the “Shares”) of The
Howard Hughes Corporation (the “Corporation”).

 

3.             The property was purchased
on November 22, 2010 (the “Date of Purchase”).

 

4.             The taxable year for which
the election is made is the calendar year 2010.

 

5.             Pursuant to the terms of the
Warrant Purchase Agreement (the “Agreement”) the Warrant will be fully vested
and nonforfeitable on date of purchase.

 

6.             The fair market value of
such property at the time of transfer (determined without regard to any
restriction other than a restriction which by its terms will never lapse) is
$2,000,000.

 

7.             The amount paid for such
property is $2,000,000.

 

8.             A copy of this statement was
furnished to the Corporation, from whom the taxpayer purchased such property.

 

9.             This statement is executed
on
[                
    ,
            ]

 

	
   

  	
   

  	
   

  
	
  Signature
  of Spouse (if any)

  	
   

  	
  Signature
  of Taxpayer

  

 

 

This
election must be filed with the Internal Revenue Service Center with which the
taxpayer files his or her federal income tax returns and must be filed within
30 days after the Date of Purchase.  This
filing should be made by registered or certified mail, return receipt requested.  The taxpayer must retain two copies of the
completed form for filing with his or her federal and state tax returns for the
current tax year and an additional copy for his or her records.

 

14Exhibit 10.3

 

EXECUTION VERSION

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (this “Agreement”),
dated November 22, 2010 (the “Effective Date”),
is entered into by and between The Howard Hughes Corporation, a Delaware
corporation (the “Company”), and David R. Weinreb
(the “Executive”).

 

RECITALS

 

The
Company desires to employ the Executive upon and subject to the terms and
conditions set forth in this Agreement and to enter into an agreement embodying
the terms of such employment.

 

The
Executive desires to accept such employment upon and subject to the terms and
conditions set forth in this Agreement.

 

The
parties desire to enter into this Agreement.

 

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.             Employment Period.  The Company hereby agrees to employ the
Executive, and the Executive hereby agrees to work in the employ of the
Company, subject to the terms and conditions of this Agreement, for the period
commencing on the Effective Date and ending, unless terminated earlier pursuant
to Section 3 hereof, on the sixth anniversary of the Effective Date
(the “Employment Period”).

 

2.             Terms of Employment.

 

(a)           Position and Duties.

 

(i)                                     During the
Employment Period, the Executive shall serve as Chief Executive Officer of the
Company, with the appropriate authority, duties and responsibilities attendant
to such position and any other duties commensurate with the position of Chief
Executive Officer of the Company that may be reasonably assigned by the Company’s
Board of Directors (the “Board”).  The Executive shall report solely to the
Board.  The Company has elected the
Executive to the Board.

 

(ii)                                  During the
Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote all of his business
attention and time to the business and affairs of the Company, and to use his
reasonable best efforts to perform such responsibilities.  During the Employment Period, it shall not be
a violation of this Agreement for the Executive to (A) consistent with
Company governance policies, serve on corporate boards or committees of
businesses that are not competitors of the Company, with prior written approval
of the Board or an authorized committee thereof, (B) serve on civic or
charitable boards or committees, (C) manage personal and family
investments, and (D) engage in lectures or teaching, so long as any such
activities do not, individually or in the aggregate, interfere with the
discharge of the Executive’s responsibilities pursuant to this Agreement; 

 

 

provided, however, for the
avoidance of doubt, during the Employment Period, the Executive shall not hold
any other management positions at other companies.  Notwithstanding the foregoing, so long as
such activities do not interfere with the Executive’s duties and
responsibilities to the Company, the Executive shall have oversight of the
Executive’s existing assets and the existing assets and business of TPMC Realty
Corporation and its Affiliates (as defined below) (“TPMC”), but shall not make any new investments on or after
the Effective Date unless (1) such investments are passive investments, (2) such
investments are not competitive with the Company, and (3) the Executive
provides notice to the Company within ten days following any such
investment.  For purposes of this
Agreement, the term “Affiliate”
has the meaning given to such term under the Securities Act of 1933.

 

(iii)                               The Executive
represents and warrants to the Company that (A) neither the execution nor
delivery of this Agreement nor the performance of the Executive’s duties
hereunder violates or will violate the provisions of any other agreement to
which the Executive is a party or by which the Executive is bound, (B) the
Executive will not use or disclose, in connection with his employment by the
Company or otherwise, any confidential and/or trade secret information of any
of his prior employers or any other party, and (C) to the knowledge of the
Executive, none of his activities relating to TPMC could be reasonably expected
to interfere with his discharge of his duties hereunder.

 

(iv)                              Place
of Performance.  The
principal place of employment of the Executive will be in the Dallas, Texas
metropolitan area (the “Principal Location”).  The Executive understands that he shall
regularly be required to travel in connection with the performance of his
duties hereunder.

 

(b)           Compensation.

 

(i)                                     Annual
Base Salary.  During the
Employment Period, unless increased by the Board in its sole discretion, the
Executive shall receive an annual base salary of $1,000,000 (the “Annual Base Salary”), payable in equal installments in
accordance with the Company’s normal payroll practice for its senior
executives, subject to the Executive’s continued active employment with the
Company.

 

(ii)                                  Bonus.  Commencing with the 2011 fiscal year, the
Executive shall be eligible for an annual cash bonus (the “Annual Bonus”).  The Annual Bonus shall be subject to such
performance measures and objectives as may be established by the Compensation
Committee of the Board (the “Compensation Committee”)
from time to time following good faith consultation with the Executive;
provided that (A) the Annual Bonus payable upon achievement of the
threshold performance level shall be equal to 50% of the Annual Base Salary, (B) the
Annual Bonus payable upon achievement of the target performance level shall be
equal to 100% of the Annual Base Salary, and (C) the Annual Bonus payable
upon achievement of the maximum performance level shall be equal to 150% of the
Annual Base Salary.  To the extent that
the Executive’s achievement level falls between performance goal achievement
levels, the Annual Bonus shall be determined using straight line interpolation
between the applicable two 

 

2

 

performance goal achievement
levels.  The determination as to whether
the performance goal achievement levels shall have been achieved shall be made
in the sole discretion of the Board (or a duly authorized committee thereof)
and, to the extent Section 162(m) of the Internal Revenue Code of
1986, as amended (the “Code”), is
applicable, shall be consistent with and subject to the requirements set forth
in Section 162(m) of the Code. 
The Annual Bonus for each year shall be paid to the Executive as soon as
reasonably practicable following the end of such year and at the same time that
other senior executives of the Company receive bonus payments, but in no event
later than March 15th following the end of the fiscal year to which
such Annual Bonus relates.

 

(iii)                               Warrants.  Prior to the execution and delivery of this
Agreement, the Company and the Executive entered into that certain Warrant
Purchase Agreement, dated as of the Effective Date (the “Warrant Agreement”).

 

(iv)                              Relocation.  If the Board requests the Executive to relocate
from the Principal Location during the Employment Term, then the Company shall
provide the Executive with (A) home sale services (at market price and
with no reimbursement for any loss on home price) and (B) reimbursement in
accordance with Company policy for the Executive’s reasonable and properly
documented moving expenses, which shall include the costs of moving the
Executive, his family and possessions from the Principal Location to the
location requested by the Board.

 

(v)                                 Indemnification.  Simultaneously herewith, or as promptly as
practicable hereafter, the Company and the Executive will enter into an
indemnification agreement on substantially the same terms as the
indemnification agreements entered into by the Company and each of its directors
prior to the Effective Date.

 

(c)           Benefits.  During the Employment Period, except as
otherwise expressly provided herein, the Executive shall be entitled to
participate in all employee welfare benefit plans, practices, policies and
programs and fringe benefits to the extent applicable generally and on a basis
no less favorable than that provided to other senior officers of the Company,
including, without limitation, health, medical, dental, long-term disability
and life insurance plans.  The Executive
shall be entitled to paid annual vacation totaling four weeks per year in
accordance with the Company’s vacation policy in effect from time to time.

 

(d)           Expenses.  The Company shall reimburse the Executive for
all reasonable and necessary expenses actually incurred by the Executive in
connection with the business affairs of the Company and the performance of the
Executive’s duties hereunder, in accordance with Company policy as in effect
from time to time.  The Company shall
also reimburse the Executive for all actual out-of-pocket expenses incurred by
TPMC through the Effective Date in connection with TPMC’s role as an advisor to
the Company prior to the Effective Date; provided that the Executive submits
substantiating documentation in reasonable detail to the Company.  In addition, promptly after the submission of
invoices in reasonable detail, the Company shall pay all fees (billed at
standard hourly rates) and expenses of Vinson & Elkins LLP, counsel to
the Executive, in connection with the negotiation of this Agreement, the
Warrant Agreement and any other agreement or instrument contemplated hereunder
or thereunder.

 

3

 

(e)           Business Travel.  Notwithstanding the foregoing, to the extent
that the Executive is required to travel during the Employment Period in
connection with the Executive’s duties and responsibilities hereunder, the
Company shall, in accordance with Company policy as in effect from time to
time, reimburse the Executive as follows: (i) for first class commercial
air travel for the Executive (and the Executive’s spouse, if the Executive’s
spouse’s presence is required for Company events, consistent with the Company’s
general policies); (ii) for first-class hotel accommodations; and (iii) private
air travel will be reimbursed for the Executive in an amount equal to the
lowest priced first class commercial airline ticket available for the
associated travel on the date of travel, provided that the same private air
travel reimbursement policy shall apply to all employees of the Company who
accompany the Executive, in each case at a reimbursement level in keeping with
the normal travel expenditures of such employee.

 

3.             Termination of Employment.

 

(a)           Death or Disability.  The Executive’s employment shall terminate
automatically upon the Executive’s death during the Employment Period.  If the Company determines that the permanent
disability of the Executive, as determined in good faith by the Board (“Disability”), has occurred during the
Employment Period, the Company may give to the Executive written notice, in
accordance with Section 12(b), of its intention to terminate the
Executive’s employment.  In such event,
the Executive’s employment with the Company shall terminate effective on the 30th day after the Executive’s receipt of such
notice by the Company (the “Disability Effective Date”),
provided that, within the 30 days after such receipt, the Executive shall not
have returned to full-time performance of the Executive’s duties.  The Executive shall fully cooperate in
connection with the determination of whether Disability exists.

 

(b)           Cause.  The Company may terminate the Executive’s
employment during the Employment Period with or without Cause.  For purposes of this Agreement, “Cause” shall mean, as determined in good faith by a
unanimous vote (excluding the Executive if he is then a member of the Board) of
the Board at a meeting of the Board held for such purpose, and where the
Executive and the Executive’s counsel had an opportunity (on at least 15 days
prior notice) to be heard before the Board, the Executive’s:

 

(i)                                     conviction,
plea of guilty or no contest to any felony;

 

(ii)                                  gross
negligence or willful misconduct in the performance of the Executive’s duties;

 

(iii)                               drug addiction
or habitual intoxication;

 

(iv)                              commission of
fraud, embezzlement, misappropriation of funds, breach of fiduciary duty,
violation of law, or a material act of dishonesty against the Company, in each
case that the Board determines was willful;

 

(v)                                 material and
continued breach of this Agreement, after notice for substantial performance is
delivered by the Company in writing that identifies in reasonable detail the
manner in which the Company believes the Executive is in breach of this
Agreement;

 

4

 

(vi)                              willful
material breach of Company policy or code of conduct; or

 

(vii)                           willful and
continued failure to substantially perform his duties hereunder (other than
such failure resulting from the Executive’s incapacity due to physical or
mental illness);

 

unless,
in each case, the event constituting Cause is curable and has been cured by the
Executive within 30 days of his receipt of notice from the Company that an
event constituting Cause has occurred and specifying the details of such
event.  If the Executive cures an event
during such period that would otherwise constitute Cause, then the Company will
have no right to terminate the Executive’s employment for Cause.  For purposes of this provision, no act or
omission on the part of the Executive shall be considered “willful” unless it is done or omitted
not in good faith or without reasonable belief that the act or omission was in
the best interests of the Company.  Any
act or omission based upon a resolution duly adopted by the Board or advice of
counsel for the Company shall be conclusively presumed to have been done or
omitted in good faith and in the best interests of the Company.  This Section 3(b) shall not
prevent the Executive from challenging in any court of competent jurisdiction
whether the Board acted in good faith in determining that Cause exists or that
the Executive has failed to cure any act (or failure to act) that purportedly
formed the basis for the Board’s determination. 
For the avoidance of doubt, the burden of proof regarding the existence
of Cause shall be on the Company.

 

(c)           Resignation.  The Executive may terminate the Executive’s
employment during the Employment Period for Good Reason.  For purposes of this Agreement, “Good Reason” shall mean the
occurrence of any of the following events without the Executive’s written
consent:

 

(i)                                     a material
diminution in the Executive’s base compensation;

 

(ii)                                  a material
diminution in the Executive’s authority, duties or responsibilities;

 

(iii)                               the Executive
no longer reports directly to the Board; or

 

(iv)                              any other
action or inaction that constitutes a material breach by the Company of this
Agreement;

 

provided
that, in each case, the Executive must provide a Notice of Termination (as
defined below) to the Company within 60 days of the initial occurrence of the
event constituting Good Reason, and the Company shall have the opportunity to
cure such event within 30 days of receiving such notice.  If the Company cures an event during such
period that would otherwise constitute Good Reason, then the Executive will
have no right to terminate his employment for Good Reason.  Following the occurrence of a Change in
Control (as defined below), any claim by the Executive that Good Reason exists
shall be presumed to be correct unless a court of competent jurisdiction
determines that the Company has established by clear and convincing evidence
that Good Reason does not exist.

 

(d)           Without Cause.  The Company shall have the right to terminate
the Executive’s employment hereunder without Cause by providing the Executive
with a Notice of 

 

5

 

Termination, and such termination shall not in and
of itself be, nor shall it be deemed to be, a breach of this Agreement.  This means that, notwithstanding this
Agreement, the Executive’s employment with the Company shall be “at will.”

 

(e)           Without Good Reason.  The Executive will have the right to
terminate his employment hereunder without Good Reason by providing the Company
with a Notice of Termination not less than 60 days prior to the effective date
thereof, and such termination shall not in and of itself be, nor shall it be
deemed to be, a breach of this Agreement.

 

(f)            Notice of Termination.  Any termination by the Company or by the
Executive shall be communicated by Notice of Termination to the other party
hereto given in accordance with Section 12(b).  For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to
the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated, and (iii) if the Date of
Termination (as defined below) is other than the date of receipt of such
notice, specifies the Date of Termination. 
The failure by the Company to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Cause shall not waive any
right of the Company hereunder, or preclude the Company from asserting such
fact or circumstance in enforcing the Company’s rights hereunder.

 

(g)           Date of Termination.  “Date of Termination”
means (i) if the Executive’s employment is terminated by the Company other
than for Disability, the date of receipt of the Notice of Termination or any
later date specified therein within 90 days of such notice, (ii) if the
Executive’s employment is terminated by the Executive, 60 days after receipt of
the Notice of Termination (provided that the Company may accelerate the Date of
Termination to an earlier date by providing the Executive with notice of such
action), (iii) if the Executive’s employment is terminated by reason of
the Executive’s death or Disability, the Date of Termination shall be the date
of the Executive’s death or the Disability Effective Date, as the case may be,
and (iv) if the Executive’s employment is terminated by expiration of this
Agreement, the date of expiration of this Agreement.

 

4.             Obligations of the Company upon
Termination.

 

(a)           Change in Control Termination.  If, during the Employment Period, the Company
shall terminate the Executive’s employment other than for Cause (and other than
upon the Executive’s death or Disability), or if the Executive shall terminate
his employment for Good Reason, in either case, in connection with, or within
12 months following, a Change in Control (any such termination of employment, a
“Change in Control Termination”),
the Company shall have no further obligations to the Executive except as
follows:

 

(i)                                     the Company
shall pay or provide the Executive, to the extent not theretofore paid, as soon
as practicable after the Date of Termination (but in no event later than 60
days after the Date of Termination): (A) a lump sum cash amount equal to
the sum of (1) the Annual Base Salary (which shall be the Annual Base
Salary prior to reduction if the termination is for Good Reason because of a
reduction in Annual Base Salary) through the Date of Termination, and (2) accrued
vacation pay through the Date 

 

6

 

of Termination; (B) any
other amounts or benefits required to be paid or provided pursuant to
applicable law; (C) any reimbursement to which the Executive is entitled pursuant
to Company policy, but which was not reimbursed prior to the Date of
Termination; (D) any other earned but unpaid outstanding compensatory
arrangements; and (E) a lump sum cash payment of a pro rata portion of the
Annual Bonus that the Executive would have been entitled to receive pursuant to
Section 2(b)(ii) hereof for the fiscal year in which the Date
of Termination occurs, based upon the percentage of the fiscal year that
elapsed through the Date of Termination (determined by dividing (1) the
number of days the Executive was employed during such year through the Date of
Termination by (2) the number of days in such fiscal year) and based on
the Executive’s, the Company’s and its Affiliates’, as applicable, actual
performance for the applicable performance period through the Date of
Termination (based on the good faith determination by the Board (or a duly
authorized committee thereof) of the achievement of the applicable performance
goals) ((A), (B), (C), (D) and (E), together, the “Accrued Benefits”);

 

(ii)                                  the Company
shall pay the Executive, on the 60th day following
the Date of Termination, a lump sum cash amount equal to the sum of (A) 300%
of the Annual Base Salary (which shall be the Annual Base Salary prior to
reduction if the termination is for Good Reason because of a reduction in
Annual Base Salary), plus (B) 300% of the Target Annual Bonus (which shall
be the Target Annual Bonus prior to reduction if the termination is for Good
Reason because of a reduction in Target Annual Bonus); and

 

(iii)                               on the 60th day following the Date of Termination,
outstanding compensatory awards, if any, that are subject to forfeiture shall
vest and become non-forfeitable.

 

(b)           Non-Change in Control Termination.  If, during the Employment Period, the
Executive’s employment shall terminate in any manner that does not constitute a
Change in Control Termination, then the Company shall have no further
obligations to the Executive other than the obligation to pay the Executive the
Accrued Benefits in accordance with Section 4(a)(i) hereof.

 

(c)           Condition.  The Company shall not be required to make the
payments and provide the benefits specified in Sections 4(a)(ii) and (iii) hereof
unless, prior to payment, the parties hereto have entered into a release
substantially in the form attached hereto as Attachment A (for which the
applicable seven-day revocation period has expired), prior to the 60th day following the Date of Termination, under
which the Executive releases the Company, its affiliates and their officers,
directors and employees from all liability (other than the payments and
benefits under this Agreement).  In the
event that such release is not executed and delivered to the Company in
accordance with this Section 4(c) prior to the 60th day following the Date of Termination (with
the applicable seven-day revocation period having expired), the Executive shall
forfeit the payments and benefits specified in Sections 4(a)(ii) and (iii) hereof.

 

(d)           Resignation from Certain
Directorships.  Following
the Employment Period or the termination of the Executive’s employment for any
reason, if and to the extent 

 

7

 

requested by the Board, the Executive agrees to
resign from the Board, all fiduciary positions (including as trustee) and from
all other offices and positions he holds with the Company and any of its
Affiliates; provided, however, that if the Executive refuses to tender his
resignation after the Board has made such request, then the Board shall be
empowered to tender the Executive’s resignation from such offices and
positions.

 

5.             Change in
Control.

 

(a)           For purposes of this
Agreement, “Change in Control”
means the occurrence of any of the following events:

 

(i)                                     A “change in
the ownership of the Company” which shall occur on the date that any one
person, or more than one person acting as a group, excluding Pershing Square
Management, L.P. and its Affiliates, acquires ownership of stock in the Company
that, together with stock held by such person or group, constitutes more than
50% of the total fair market value or total voting power of the stock of the
Company; however, if any one person or more than one person acting as a group,
is considered to own more than 50% of the total fair market value or total
voting power of the stock of the Company, the acquisition of additional stock
by the same person or persons will not be considered a “change in the ownership
of the Company” (or to cause a “change in the effective control of the Company”
within the meaning of Section 5(a)(ii) below) and an increase
of the effective percentage of stock owned by any one person, or persons acting
as a group, as a result of a transaction in which the Company acquires its
stock in exchange for property will be treated as an acquisition of stock for
purposes of this paragraph; provided further, however, that for purposes of
this Section 5(a)(i), the following acquisitions shall not
constitute a Change in Control:  (A) any
acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Company or any entity controlled by the Company, or (B) any
acquisition by investors (immediately prior to such acquisition) in the Company
for financing purposes, as determined by the Board in its sole discretion.  This Section 5(a)(i) applies
only when there is a transfer of the stock of the Company (or issuance of
stock) and stock in the Company remains outstanding after the transaction.

 

(ii)                                  A “change in
the effective control of the Company” which shall occur on the date that either
(A) any one person, or more than one person acting as a group, excluding
Pershing Square Management, L.P. and its Affiliates, acquires (or has acquired
during the twelve month period ending on the date of the most recent
acquisition by such person or persons) ownership of stock of the Company
possessing 35% or more of the total voting power of the stock of the Company,
except for (1) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any entity controlled by the
Company, or (2) any acquisition by investors (immediately prior to such
acquisition) in the Company for financing purposes, as determined by the Board
in its sole discretion; or (B) a majority of the members of the Board are
replaced during any twelve-month period by directors whose appointment or
election is not endorsed by a majority of the members of the Board prior to the
date of the appointment or election.  For
purposes of a “change in the effective control of the Company,” if any one
person, or more than one person acting as a group, is considered to effectively

 

8

 

control the Company within
the meaning of this Section 5(a)(ii), the acquisition of additional
control of the Company by the same person or persons is not considered a “change
in the effective control of the Company,” or to cause a “change in the
ownership of the Company” within the meaning of Section 5(a)(i) above.

 

(iii)                               The occurrence
of any of the transactions contemplated by Section 5(a)(i) or 5(a)(ii) above
(including any acquisition by Pershing Square Management, L.P. or its
Affiliates), in connection with which the stock of the Company ceases to be
publicly traded on a national securities exchange.

 

(iv)                              A “change in
the ownership of a substantial portion of the Company’s assets” which shall
occur on the date that any one person, or more than one person acting as a
group, excluding Pershing Square Management, L.P. and its Affiliates, acquires
(or has acquired during the twelve month period ending on the date of the most
recent acquisition by such person or persons) assets of the Company that have a
total gross fair market value equal to or more than 60% of the total gross fair
market value of all the assets of the Company immediately prior to such
acquisition or acquisitions; provided that the proceeds of such acquisition or
acquisitions are distributed to the shareholders of the Company in connection
with such acquisition or acquisitions.  For
this purpose, gross fair market value means the value of the assets of the
Company, or the value of the assets being disposed of, determined without
regard to any liabilities associated with such assets.  Any transfer of assets to an entity that is
controlled by the shareholders of the Company immediately after the transfer,
as provided in guidance issued pursuant to Section 409A of the Code, shall
not constitute a Change in Control.

 

(v)                                 For purposes of
this Section 5(a), the provisions of Section 318(a) of
the Code regarding the constructive ownership of stock will apply to determine
stock ownership; provided, that stock underlying unvested options (including
options exercisable for stock that is not substantially vested) will not be
treated as owned by the individual who holds the option.  In addition, for purposes of this Section 5(a),
“Company” includes (A) the Company and (B) an entity that is a
stockholder owning more than 50% of the total fair market value and total
voting power (a “Majority Shareholder”)
of the Company, or any entity in a chain of entities in which each entity is a
Majority Shareholder of another entity in the chain, ending in the Company.

 

6.             Full Settlement.  In no event shall the Executive be obligated
to seek other employment, or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement,
and such amounts shall not be reduced, whether or not the Executive obtains
other employment.  The Company may offset
any amounts that it owes to the Executive by any amounts relating to employment
matters that the Executive owes to the Company or its Affiliates; provided that
in no event shall any payment under this Agreement that constitutes “nonqualified deferred compensation”
for purposes of Section 409A of the Code be subject to offset by any other
amount unless otherwise permitted by Section 409A of the Code.

 

9

 

 

 

7.             Potential
Reductions.

 

(a)           Notwithstanding
any other provisions in this Agreement, in the event that any payment or
benefit received or to be received by the Executive (including, without
limitation, any payment or benefit received in connection with a Change in
Control or the termination of the Executive’s employment, whether pursuant to
the terms of this Agreement or any other plan, program, arrangement or
agreement) (all such payments and benefits, together, the “Total Payments”) would be subject (in
whole or part), to any excise tax imposed under Section 4999 of the Code, or
any successor provision thereto (the “Excise
Tax”), then, after taking into account any reduction in the Total
Payments provided by reason of Section 280G of the Code in such other plan,
program, arrangement or agreement, the Company will reduce the Executive’s
payments and/or benefits under this Agreement, to the extent necessary so that
no portion of the Total Payments is subject to the Excise Tax (but in no event
to less than zero), in the following order: 
(i) any cash severance amounts set forth in Section 4(a)(ii)
hereof; (ii) any cash severance amount derived based upon the payment of the
pro rata portion of the Annual Bonus, as described in Section 4(a)(i)(E)
hereof; and (iii) any acceleration of outstanding compensatory awards, as
described in Section 4(a)(iii) hereof (the payments and benefits set
forth in clauses (i) through (iii) of this Section 7(a), together, the “Potential Payments”); provided, however,
that the Potential Payments shall only be reduced if (A) the net amount of such
Total Payments, as so reduced (and after subtracting the net amount of federal,
state and local income taxes on such reduced Total Payments and after taking
into account the phase out of itemized deductions and personal exemptions
attributable to such reduced Total Payments), is greater than or equal to (B)
the net amount of such Total Payments without such reduction (but after
subtracting the net amount of federal, state and local income taxes on such
Total Payments and the amount of Excise Tax to which the Executive would be
subject in respect of such unreduced Total Payments and after taking into
account the phase out of itemized deductions and personal exemptions
attributable to such unreduced Total Payments.

 

(b)           For
purposes of determining whether and the extent to which the Total Payments will
be subject to the Excise Tax:  (i) no
portion of the Total Payments the receipt or enjoyment of which the Executive
shall have waived at such time and in such manner as not to constitute a “payment”
within the meaning of Section 280G(b) of the Code shall be taken into account;
(ii) no portion of the Total Payments shall be taken into account which, in the
opinion of tax counsel (“Tax Counsel”)
reasonably acceptable to the Executive and selected by the accounting firm
which was, immediately prior to the Change in Control, the Company’s
independent auditor (the “Auditor”),
does not constitute a “parachute payment” within the meaning of Section
280G(b)(2) of the Code (including, without limitation, by reason of Section
280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of
such Total Payments shall be taken into account which, in the opinion of Tax
Counsel, constitutes reasonable compensation for services actually rendered,
within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base
amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to
such reasonable compensation; and (iii) the value of any non-cash benefit or
any deferred payment or benefit included in the Total Payments shall be
determined by the Auditor in accordance with the principles of Sections
280G(d)(3) and (4) of the Code.

 

(c)           At the time that payments are made under this Agreement,
the Company shall provide the Executive with a written statement setting forth
the manner in which such 

 

10

 

payments were calculated and the basis for such
calculations, including, without limitation, any opinions or other advice the
Company received from Tax Counsel, the Auditor, or other advisors or
consultants (and any such opinions or advice which are in writing shall be
attached to the statement).  If the Executive
objects to the Company’s calculations, the Company shall pay to the Executive
such portion of the Potential Payments (up to 100% thereof) as the Executive
determines is necessary to result in the proper application of this Section
7.  All determinations required by
this Section 7 (or requested by the Company or the Executive in
connection with this Section 7) shall be at the expense of the
Company.  The fact that the Executive’s
right to payments or benefits may be reduced by reason of the limitations
contained in this Section 7 shall not of itself limit or otherwise
affect any other rights of the Executive under this Agreement.

 

8.             Restrictive
Covenants.

 

(a)           Non-Solicit.  During the Employment Period, and for a
12-month period after the Executive’s employment is terminated for any reason,
the Executive shall not (except in connection with the performance of his
duties for the Company) in any manner, directly or indirectly (without the
prior written consent of the Company) Solicit (as defined below) anyone who is
then an employee or independent contractor of the Company or its Affiliates (or
who was an employee or independent contractor of the Company or its Affiliates
within the prior 12 months) to resign from the Company or its Affiliates or to
apply for or accept employment with any other business or enterprise.  For purposes of this Agreement, “Solicit” means any direct or indirect communication of any
kind, regardless of who initiates it, that in any way invites, advises,
encourages or requests any person to take or refrain from taking any action.

 

(b)           Confidential Information.  The Executive hereby acknowledges that, as an
employee of the Company, he will be making use of, acquiring and adding to
confidential information of a special and unique nature and value relating to
the Company and its Affiliates and their strategic plan and financial
operations.  The Executive further
recognizes and acknowledges that all confidential information is the exclusive
property of the Company and its Affiliates, is material and confidential, and
is critical to the successful conduct of the business of the Company and its
Affiliates.  Accordingly, the Executive
hereby covenants and agrees that he will use confidential information for the
benefit of the Company and its Affiliates only and shall not at any time,
directly or indirectly, during the term of this Agreement and thereafter
divulge, reveal or communicate any confidential information to any person,
firm, corporation or entity whatsoever, or use any confidential information for
his own benefit or for the benefit of others. 
Notwithstanding the foregoing, the Executive shall be authorized to
disclose confidential information (i) as may be required by law or legal
process after providing the Company with prior written notice and an
opportunity to respond to such disclosure (unless such notice is prohibited by
law), or (ii) with the prior written consent of the Company.

 

(c)           Non-Competition.  During the Employment Period, and for a
12-month period after the Executive’s employment is terminated for any reason,
the Executive shall not directly or indirectly (whether for compensation or
otherwise) own or hold any interest in, manage, operate, control, consult with,
render services for, or in any manner participate in any business that is
competitive with the business of the Company, either as a general or limited
partner, proprietor, shareholder, officer, director, agent, employee,
consultant, trustee, Affiliate 

 

11

 

or otherwise. 
Nothing herein shall prohibit the Executive from being a passive owner
of not more than 2% of the outstanding securities of any publicly traded
company engaged in the business of the Company. 
For the avoidance of doubt, the Executive shall not be deemed to be
competing with the business of the Company as a result of the Executive’s
oversight of the Executive’s existing assets and the existing assets and
business of TPMC, each as of the date hereof and as described in Section
2(a)(ii) hereof.

 

(d)           Survival.  Any termination of the Executive’s employment
or of this Agreement (or breach of this Agreement by the Executive or the
Company) shall have no effect on the continuing operation of this Section 8.

 

(e)           Non-Disparagement.  During the Employment Period and thereafter,
the Executive shall not, in any manner, directly or indirectly through another
person or entity, knowingly make any false or any disparaging or derogatory
statements about the Company, any of its Affiliates or any of their employees,
officers or directors.  The Company, in
turn, agrees that it will not make, in any authorized corporate communications
to third parties, and it will direct the members of the Board and the Chief
Executive Officer, not to in any manner, directly or indirectly through another
person or entity, knowingly make any false or any disparaging or derogatory
statements about the Executive; provided, however, that nothing herein shall
prevent either party from giving truthful testimony or from otherwise making
good faith statements in connection with legal investigations or other
proceedings.

 

(f)            Enforcement.  If, at the time of enforcement of this Section
8, a court of competent jurisdiction holds that the restrictions stated
herein are unreasonable under circumstances then existing, the parties hereto agree
that the maximum period, scope or geographical area reasonable under such
circumstances shall be substituted for the stated period, scope or area.  Because the Executive’s services are unique
and because the Executive has access to confidential information, the parties
hereto agree that money damages would be an inadequate remedy for any breach of
this Section 8.  Therefore, in the
event of a breach or threatened breach of this Agreement, the Company or its
successors or assigns may, in addition to other rights and remedies existing in
their favor, apply to any court of competent jurisdiction for specific
performance and/or injunctive or other relief in order to enforce, or prevent
any violations of, the provisions hereof.

 

9.             Successors.

 

(a)           This Agreement is
personal to the Executive and without the prior written consent of the Company
shall not be assignable by the Executive otherwise than by will or the laws of
descent and distribution.  This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
legal representatives.

 

(b)           This Agreement shall inure to the
benefit of and be binding upon the Company and its successors and assigns.

 

(c)           The Company will
require any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same 

 

12

 

manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place.  Upon the
occurrence of a Change in Control, the Company will similarly require the
acquiring entity to assume the Company’s obligations under this Agreement.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and
any successor to its business and/or assets (or the acquiring entity upon the
occurrence of a Change in Control) as aforesaid.

 

10.           Disputes.

 

(a)           Jurisdiction and Choice of
Forum.  All disputes arising
under or related to the employment of the Executive or the provisions of this
Agreement shall be settled by arbitration under the rules of the American
Arbitration Association then in effect, such arbitration to be held in Dallas,
Texas, as the sole and exclusive remedy of either party.  The arbitration shall be heard by one
arbitrator mutually agreed upon by the parties, who must be a former
judge.  In the event that the parties
cannot agree upon the selection of the arbitrator within ten days, each party
shall select one arbitrator and those arbitrators shall select a third
arbitrator who will serve as the sole arbitrator.  The arbitrator shall have the authority to
order expedited discovery, hearing and decision, including, without limitation,
the ability to set outside time limits for such discovery, hearing and
decision.  The parties shall direct the
arbitrator to render a decision not later than 90 days following the
arbitration hearing.  Judgment on any
arbitration award may be entered in any court of competent jurisdiction.

 

(b)           Governing Law.  This Agreement will be governed by and
construed in accordance with the law of the State of Delaware applicable to
contracts made and to be performed entirely within that State.

 

11.           Section
409A of the Code.

 

(a)           Compliance.  The intent of the parties is that payments
and benefits under this Agreement are either exempt from or comply with Section
409A of the Code (“Section 409A”)
and, accordingly, to the maximum extent permitted, this Agreement shall be
interpreted to that end.  The parties
acknowledge and agree that the interpretation of Section 409A and its
application to the terms of this Agreement is uncertain and may be subject to
change as additional guidance and interpretations become available.  In no event whatsoever shall the Company be
liable for any tax, interest or penalties that may be imposed on the Executive
by Section 409A or any damages for failing to comply with Section 409A.

 

(b)           Six Month Delay for
Specified Employees.  If any
payment, compensation or other benefit provided to the Executive in connection
with his employment termination is determined, in whole or in part, to
constitute “nonqualified deferred compensation”
within the meaning of Section 409A and the Executive is a “specified
employee” as defined in Section 409A, no part of such payments shall
be paid before the day that is six months plus one day after the Executive’s
date of termination or, if earlier, the Executive’s death (the “New Payment Date”). 
The aggregate of any payments that otherwise would have been paid to the
Executive during the period between the date of termination and the New Payment
Date shall be paid to the Executive in a lump sum on such New Payment
Date.  Thereafter, any payments that
remain 

 

13

 

outstanding as of the day immediately following the
New Payment Date shall be paid without delay over the time period originally
scheduled, in accordance with the terms of this Agreement.

 

(c)           Termination as a
Separation from Service.  A
termination of employment shall not be deemed to have occurred for purposes of
any provision of this Agreement providing for the payment of any amounts or
benefits subject to Section 409A upon or following a termination of employment
until such termination is also a “separation from service”
within the meaning of Section 409A and for purposes of any such provision of
this Agreement, references to a “resignation,” “termination,” “terminate,” “termination of employment” or like terms shall mean
separation from service.

 

(d)           Payments for
Reimbursements and In-Kind Benefits. 
All reimbursements for costs and expenses under this Agreement shall be
paid in no event later than the end of the calendar year following the calendar
year in which the Executive incurs such expense.  With regard to any provision herein that
provides for reimbursement of costs and expenses or in-kind benefits, except as
permitted by Section 409A, (i) the right to reimbursement or in-kind benefits
shall not be subject to liquidation or exchange for another benefit, and (ii)
the amount of expenses eligible for reimbursement or in-kind benefits provided
during any taxable year shall not affect the expenses eligible for
reimbursement or in-kind benefits to be provided in any other taxable year.

 

(e)           Payments within Specified
Number of Days.  Whenever a
payment under this Agreement specifies a payment period with reference to a
number of days (e.g., “payment shall
be made within 30 days following the date of termination”), the actual
date of payment within the specified period shall be within the sole discretion
of the Company.

 

(f)            Installments as Separate
Payment.  If under this
Agreement, an amount is paid in two or more installments, for purposes of
Section 409A, each installment shall be treated as a separate payment.

 

12.           Miscellaneous.

 

(a)           Amendment.  This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

 

(b)           Notices.  Whenever any notice is required or permitted
hereunder, such notice must be in writing and personally delivered or sent by
electronic facsimile transmission.  The
parties agree that any notices shall be given at the following addresses;
provided that the parties may change, at any time and from time to time, by
written notice to the other, the address which it or he had previously
specified for receiving notices:

 

If to the
Executive:

 

at the
Executive’s primary residential address 

as shown on the records of the Company

 

14

 

If to the
Company:

 

The
Howard Hughes Corporation

One Galleria Tower

13355 Noel Road, Suite 950

Dallas, Texas 75240

Attention: Office of the General Counsel

 

with a
copy to:

 

William
A. Ackman, Chairman of the Board

888 Seventh Avenue, 42nd Floor

New York, NY 10019

 

or to
such other address as either party shall have furnished to the other in writing
in accordance herewith.  Notice and
communications shall be effective when actually received by the addressee.

 

(c)           Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

 

(d)           Tax Withholding.  The Company may withhold from any amounts
payable under this Agreement such federal, state, local or foreign taxes as
shall be required to be withheld pursuant to any applicable law or regulation.

 

(e)           Late Payments.  The Company shall pay interest at a rate of
10% per year (compounded daily) on any payments that are due to the Executive
under the terms of this Agreement, and which are paid to the Executive later
than the applicable due date.

 

(f)            Compliance with Dodd-Frank.  All payments under this Agreement, if and to
the extent subject to the Dodd-Frank Wall Street Reform and Consumer Protection
Act (the “Dodd-Frank Act”), shall
be subject to any incentive compensation policy established from time to time
by the Company to comply with the Dodd-Frank Act.

 

(g)           No Waiver.  The Executive’s or the Company’s failure to
insist upon strict compliance with any provision of this Agreement or the
failure to assert any right the Executive or the Company may have hereunder,
including, without limitation, the Company’s right to terminate the Executive
for Cause pursuant to Section 3 (subject
to the Executive’s right to challenge the Board’s determination of Cause in a
court of competent jurisdiction as described in Section 3(b) hereof),
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

 

(h)           No Strict Construction.  It is the parties’ intention that this
Agreement not be construed more strictly with regard to the Executive or the
Company.

 

(i)            Entire Agreement.  This Agreement shall supersede any other
employment or severance agreement or similar arrangements between the parties,
and shall supersede any 

 

15

 

prior understandings, agreements or representations
by or among the parties, written or oral, whether in term sheets, presentations
or otherwise, relating to the subject matter hereof.

 

(j)            Counterparts.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

 

(k)           Section References;
Captions.  Any reference to a
Section herein is a reference to a section of this Agreement unless otherwise
stated.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.

 

[Remainder of page intentionally left blank]

 

16

 

IN
WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and,
pursuant to the authorization from the Board or other duly authorized governing
body, the Company has caused these presents to be executed in its name on its
behalf, all as of the Effective Date.

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  David R. Weinreb

  
	
   

  	
  David
  R. Weinreb

  
	
   

  	
   

  
	
   

  	
  THE
  HOWARD HUGHES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Gary Krow

  
	
   

  	
   

  	
  Gary
  Krow

  
	
   

  	
   

  	
  Chairman
  of the Compensation Committee

  

 

 

ATTACHMENT A

 

WAIVER AND RELEASE AGREEMENT

 

This
Waiver and Release Agreement (hereinafter “Release”) is
entered into among David R. Weinreb (hereinafter “Executive”)
and The Howard Hughes Corporation, a Delaware corporation (the “Company”).

 

The
parties previously entered into an employment agreement dated November 22, 2010
(the “Employment Agreement”),
pursuant to which Executive is entitled to certain payments and benefits upon
termination of employment subject to the execution and nonrevocation of this
Release.  Executive has had a termination
of employment pursuant to the Employment Agreement.

 

NOW
THEREFORE, in consideration of certain payments and benefits under the
Employment Agreement,

 

Executive
and the Company agree as follows:

 

1.             Executive expressly waives and
releases the Company, its affiliates and related entities, parent corporations
and subsidiaries, and all current and former directors, administrators,
supervisors, managers, agents, officers, partners, stockholders, attorneys,
insurers and employees of the Company and its affiliates, related entities,
parent corporations and subsidiaries, and their successors and assigns, from
any and all claims, actions and causes of action, at law or in equity, known or
unknown, including, without limitation, those directly or indirectly relating
to or connected with Executive’s employment with the Company or termination of
such employment, including but not limited to any and all claims under the
Texas Commission on Human Rights Act, the Texas Payday Act, the Employee
Retirement Income Security Act of 1974, Title VII of the Civil Rights Act of
1964, the Age Discrimination in Employment Act, the Americans with Disabilities
Act, as such Acts have been amended, and all other forms of employment
discrimination whether under federal, state or local statute or ordinance,
wrongful termination, retaliatory discharge, breach of express, implied, or
oral contract, interference with contractual relations, defamation, intentional
infliction of emotional distress and any other tort or contract claim under
common law of any state or for attorneys’ fees, based on any act, transaction,
circumstance or event arising up to and including the date of Executive’s
execution of this Release; provided, however, that nothing herein shall limit
or impede Executive’s right to file or pursue an administrative charge with, or
participate in, any investigation before the Equal Employment Opportunity
Commission, or any similar local, state or federal agency, or to file a claim
for unemployment compensation benefits, and/or any causes of action which by
law Executive may not legally waive. 
Executive agrees, however, that if Executive or anyone acting on
Executive’s behalf, brings any action concerning or related to any cause of
action or liability released in this Release, Executive waives any right to,
and will not accept, any payments, monies, damages, or other relief, awarded in
connection therewith.

 

2.             Executive acknowledges: (a) that
Executive has been advised in writing hereby to consult with an attorney before
signing this Release, and (b) that Executive has had at least twenty-one (21)
days after receipt of this information and Release to consider whether to
accept 

 

 

or reject
this Release.  Executive understands that
Executive may sign this Release prior to the end of such twenty-one (21) day
period, but is not required to do so.  In
addition, Executive has seven (7) days after Executive signs this Release to
revoke it.  Such revocation must be in
writing and delivered either by hand or mailed and postmarked within the seven
(7) day revocation period.  If sent by
mail, it is requested that it be sent by certified mail, return receipt requested
to the Company, in care of the office of the General Counsel.  If Executive revokes this Release as provided
herein, it shall be null and void.  If
Executive does not revoke this Release within seven (7) days after signing it,
this Release shall become enforceable and effective on the eighth (8th)
day after the Executive signs this Release (the “Effective
Date”).

 

3.             Executive and the Company agree
that neither this Release nor the performance hereunder constitutes an
admission by the Company of any violation of any federal, state or local law,
regulation, or common law, or any breach of any contract or any other
wrongdoing of any type.

 

4.            This Release shall be construed
and enforced pursuant to the laws of the State of Delaware as to substance and procedure,
including all questions of conflicts of laws.

 

5.             This Release constitutes the
entire agreement between the parties concerning the subject matter hereof and
supersedes all prior and contemporaneous agreements, if any, between the
parties relating to the subject matter thereof; provided that this Release does
not apply to: (a) any claims under employee benefit plans subject to the
Employee Retirement Income Security Act of 1974 in accordance with the terms of
the applicable employee benefit plan, or any option agreement or other
agreement pursuant to which Executive may exercise rights after termination of
employment to acquire stock or other equity of the Company, (b) any claim under
or based on a breach of this Release or Section 8 of the Employment Agreement
after the date that Executive signs this Release; (c) rights or claims that may
arise under the Age Discrimination in Employment Act or otherwise after the
date that Executive signs this Release; or (d) any right to indemnification or
directors and officers liability insurance coverage to with Executive is
otherwise entitled in accordance with the Employment Agreement.

 

6.             EXECUTIVE ACKNOWLEDGES THAT
EXECUTIVE HAS FULLY READ AND FULLY UNDERSTANDS THIS RELEASE; AND THAT EXECUTIVE
ENTERED INTO IT FREELY AND VOLUNTARILY AND WITHOUT COERCION OR PROMISES NOT
CONTAINED IN THIS RELEASE.

 

	
  EXECUTIVE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  David
  R. Weinreb

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE
  HOWARD HUGHES CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}]]