Document:

Exhibit 10.1

 

 

PROPERTY
MANAGEMENT WITHOUT ACCOUNTING SERVICES

 

BETWEEN

 

AMERIVEST
PROPERTIES INC

 

AND

 

TRAMMELL
CROW SERVICES, INC.

 

DATE: AUGUST 30,
2005

 

 

	
  

  

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE 1
  APPOINTMENT AND AUTHORITY OF MANAGER

  
	
  Section 1.1

  	
  Appointment

  
	
  Section 1.2

  	
  Commencement Date

  
	
   

  	
   

  
	
  ARTICLE 2
  MANAGER’S AGREEMENTS

  
	
  Section 2.1

  	
  General Responsibility

  
	
  Section 2.2

  	
  Independent Contractor

  
	
   

  	
   

  
	
  ARTICLE 3
  SERVICES OF MANAGER

  
	
  Section 3.1

  	
  For Owner’s Account

  
	
  Section 3.2

  	
  Standards

  
	
  Section 3.3

  	
  Computer Software

  
	
  Section 3.5

  	
  Budgets

  
	
  Section 3.7

  	
  Employees

  
	
  Section 3.8

  	
  Collection of Rents and
  Other Income

  
	
  Section 3.9

  	
  Maintenance, Repairs,
  Alterations

  
	
  Section 3.10

  	
  Capital Expenditures

  
	
  Section 3.11

  	
  Service Contracts

  
	
  Section 3.12

  	
  Compliance With Laws

  
	
  Section 3.13

  	
  Notification of Litigation

  
	
  Section 3.14

  	
  Management Office

  
	
   

  	
   

  
	
  ARTICLE 4
  INSURANCE AND INDEMNIFICATION

  
	
  Section 4.1

  	
  Manager’s Insurance

  
	
  Section 4.2

  	
  Owner’s Insurance

  
	
  Section 4.3

  	
  Hold Harmless and Indemnity

  
	
   

  	
   

  
	
  ARTICLE 6 MANAGER’S COMPENSATION

  
	
  Section 6.1

  	
  Management Fee

  
	
  Section 6.2

  	
  Gross Revenues.

  
	
  Section 6.3

  	
  Compensation of Manager
  for Other Services.

  
	
  Section 6.4

  	
  [Disposition of Premises

  
	
   

  	
   

  
	
  ARTICLE 7 TERM AND TERMINATION

  
	
  Section 7.1

  	
  Term

  
	
  Section 7.2

  	
  Termination By Sale

  
	
  Section 7.3

  	
  Termination By Default

  
	
  Section 7.4

  	
  Manager’s Obligations
  After Termination

  
	
  Section 7.5

  	
  Final Accounting.

  
	
   

  	
   

  
	
  ARTICLE 8 NOTICES AND ASSIGNMENTS

  
	
  Section 8.1

  	
  Notice

  
	
  Section 8.2

  	
  Permitted Assignment

  
	
   

  	
   

  
	
  ARTICLE 9 MISCELLANEOUS

  
	
  Section 9.1

  	
  Delegation of
  Responsibility for Operational Activities

  
	
  Section 9.2

  	
  Signs

  

 

i

 

	
  Section 9.3

  	
  Pronouns

  
	
  Section 9.4

  	
  Amendments

  
	
  Section 9.5

  	
  Headings

  
	
  Section 9.6

  	
  Representations

  
	
  Section 9.7

  	
  Complete Agreement

  
	
  Section 9.8

  	
  Governing Law

  
	
  Section 9.9

  	
  Attorney’s Fees

  
	
  Section 9.10

  	
  Waiver of Jury Trial

  
	
  Section 9.11

  	
  Force Majeure

  
	
  Section 9.12

  	
  OFAC

  
	
  Section 9.13

  	
  Additional Premises

  
	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
  Exhibit A

  	
  DESCRIPTION OF REAL
  PROPERTY

  
	
  Exhibit B

  	
  EMPLOYEE
  COSTS

  
	
  Exhibit C

  	
  MANAGEMENT OFFICE COSTS

  
	
  Exhibit D

  	
  SOFTWARE REQUIREMENTS

  
	
  Exhibit E

  	
  MANAGEMENT FEE SCHEDULE

  
	
  Exhibit F

  	
  CONSTRUCTION MANAGEMENT
  FEE

  
	
  Exhibit G

  	
  SCOPE OF WORK

  
	
  Rider

  	
  COLORADO
  STATE LAW PROVISIONS

  

 

ii

 

LIST OF
DEFINED TERMS

 

	
  Agreement

  	
   

  
	
  Approved Capital Budget

  	
   

  
	
  Approved Operating Budget

  	
   

  
	
  Budget

  	
   

  
	
  Budgets

  	
   

  
	
  Capital Budget

  	
   

  
	
  Claims

  	
   

  
	
  Commencement Date

  	
   

  
	
  Construction Management Fee

  	
   

  
	
  Gross Revenues

  	
   

  
	
  Hazardous Activity

  	
   

  
	
  Hazardous Materials

  	
   

  
	
  Intragroup Merger

  	
   

  
	
  Management Fee

  	
   

  
	
  Management Office Costs

  	
   

  
	
  Manager

  	
   

  
	
  OFAC

  	
   

  
	
  Operating Budget

  	
   

  
	
  Operational Activities

  	
   

  
	
  Owner

  	
   

  
	
  Premises

  	
   

  
	
  Renewal Term

  	
   

  
	
  Software Requirements

  	
   

  
	
  TCC

  	
   

  
	
  Term

  	
   

  

 

iii

 

PROPERTY
MANAGEMENT AGREEMENT

 

This Property Management Agreement (this “Agreement”) is made as of August 25,
2005, by and between AmeriVest Properties Inc, a (hereinafter referred to as “Owner”) and TRAMMELL CROW SERVICES, INC., a Delaware corporation
(hereinafter referred to as “Manager”).

 

RECITALS:

 

Owner is the parent company of
various corporate entities that own the certain real properties being more
fully described on Exhibit A attached hereto, together with all
improvements now or hereafter appertaining thereto or located thereon, and all
of Owner’s personal property now or hereafter located thereon or as may from
time to time be otherwise provided, in accordance with this Agreement, for the
use, operation and enjoyment of Owner or Manager, all of which is hereinafter
collectively referred to as the “Premises”.  For purposes of this Agreement, the term “Premises”
may include all of the real properties covered by this Agreement, or may refer
to only one or more of the real properties, as the context may require.  Owner desires to engage Manager as its
exclusive property manager for the Premises to manage and operate the Premises,
and Manager desires to accept such engagement.

 

WITNESSETH:

 

In consideration of the covenants herein contained,
the parties hereto agree as follows:

 

ARTICLE 1

APPOINTMENT AND AUTHORITY OF MANAGER

 

In consideration of the mutual promises made by
Owner and Manager in this Agreement and other valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Owner and Manager
agree as follows:

 

Section 1.1                                   Appointment.  Owner
hereby appoints Manager as the exclusive managing agent for the Premises.  Owner hereby authorizes Manager to exercise
such powers with respect to the Premises as may be appropriate for the
performance of Manager’s obligations under the terms of this Agreement and
Manager accepts such appointment under the terms and conditions hereinafter set
forth.  Manager shall have no right or
authority, expressed or implied, to commit or otherwise obligate Owner in any
manner whatsoever except to the extent provided herein.

 

Section 1.2                                   Commencement Date.  Manager’s
duties and responsibilities under this Agreement shall begin on October 1,
2005 (the “Commencement Date”),
and shall continue until the expiration or earlier termination of this
Agreement as provided under Article 6.

 

ARTICLE 2

MANAGER’S AGREEMENTS

 

Section 2.1                                   General Responsibility.  Manager,
on behalf of Owner, shall implement, or cause to be implemented, the decisions
of Owner with respect to the Premises and shall supervise

 

1

 

and
direct the management and operation of the Premises on behalf of Owner as
provided in this Agreement  (the “Operational Activities”).  Manager agrees to use commercially reasonable
efforts in its conduct of the Operational Activities and to comply with such
instructions and policies as may be reasonably requested by Owner.

 

Section 2.2                                   Independent Contractor.  Manager
covenants and agrees to perform the Operational Activities and Owner authorizes
Manager to perform the Operational Activities on behalf of Owner.  Manager, in the performance of its duties
under this Agreement, is an independent contractor and it is expressly
understood and agreed that payments hereunder shall be payments by Owner to
Manager as an independent contractor and not as an agent, employee, partner or
joint venturer of Owner.  Nothing in this
Agreement shall be construed as requiring Manager to bear any portion of any
losses or gains arising out of or connected with the ownership or operation of
the Premises.

 

ARTICLE 3

SERVICES OF MANAGER

 

Section 3.1                                   For Owner’s Account.  The
services of Manager in performing its duties and providing services pursuant to
this Agreement shall be for the account of Owner.  Owner agrees to be responsible for all costs,
expenses, and disbursements incurred by Manager under the terms of this
Agreement in conducting the Operational Activities, such as, but not limited
to: contracts for cleaning and janitorial service, landscaping, maintenance
services, supplies and equipment, employee costs, and other costs directly
related to the management and operations of the Premises. Manager will not
incur any expenses or make any expenditure except as expressly permitted in or
by this Agreement.  Under no
circumstances shall Manager be required to advance funds from its own accounts
for the operation, maintenance, repair or management of the Premises.  Owner shall be responsible for full
compliance with all applicable federal, state and municipal laws, ordinances,
regulations and orders relating to the use, operation, repair and maintenance
of the Premises and with the rules, regulations and orders of the local Board
of Fire Underwriters or other similar body, if any.

 

Section 3.2                                   Standards.  Subject
to budgetary limitations, Manager shall manage, operate, and maintain the
Premises in a manner normally associated with the management and operation of a
project of similar quality which shall include maintaining the Premises in a
clean, safe, operable, and attractive condition comparable to similar projects
in the area, unless otherwise directed by Owner.

 

Section 3.3                                   Computer Software.  At
Owner’s cost, Manager shall utilize the software system(s) (and if required to
run the software, the specialized hardware, connectivity, service and support
requirements necessary for such software), as more particularly set forth on Exhibit D
attached hereto  (the “Software Requirements”).  Owner agrees to provide and pay for all
annual licensing agreement fees and training for Manager’s employees (including
travel costs) related to Manager’s adoption of the Software Requirements.

 

Section 3.4                                   Budgets.  Manager
shall for each calendar year prepare and submit to Owner a proposed operating
budget (the “Operating Budget”)
and a proposed capital improvements budget (the “Capital Budget”, and each of the Capital Budget and
Operating Budget, a

 

2

 

“Budget,” and collectively the “Budgets”) for, respectively, the (i) management
and operation of the Premises and (ii) the replacement, repair, and
maintenance of equipment or improvements of a capital nature on or about the Premises.  Each proposed Budget for the succeeding
calendar year shall be presented to Owner no later than October 1 of the
preceding calendar year, or, as to the initial Budgets, no later than
forty-five (45) days after the Commencement Date.

 

(a)                                  If the proposed Budgets are acceptable to
Owner, Owner shall so notify Manager within thirty (30) days after Owner’s
receipt of the Budgets.  Should Owner
fail to notify Manager within such thirty (30) day period then the proposed
Operating Budget (but not the Capital Budget) will be deemed accepted by
Owner.  The proposed Operating Budget
when approved or deemed approved, shall then become the approved Operating
Budget (the “Approved Operating Budget”)
for purposes of this Agreement.

 

(b)                                 The Approved Operating Budget shall
constitute an authorization for Manager to expend such funds as are appropriate
to manage and operate the Premises.  Any
such authorization to expend money shall be limited to the allocations
specifically set forth in the Approved Operating Budget, except as set forth
below.

 

(1)                                  Any contemplated expenditure that will result
in a cumulative excess of: (A) five percent (5%) of the year-to-date (YTD)
budgeted expenses, or, (B) ten percent (10%) in any one of the major
operating categories comprising the Budget, and (C) exceeding five
thousand dollars ($5,000), shall require the prior written approval of
Owner.  Manager shall notify Owner in
writing of the variance and Owner shall approve or disapprove the expenditure
in writing within five (5) days of receipt of Manager’s notification.  Should Owner fail to notify Manager within
such five (5) day period, then the variance shall be deemed approved by
Owner.

 

(c)                                  The Capital Budget, when approved, shall then
become the approved capital budget (“Approved
Capital Budget”) and shall constitute an authorization for
Manager to expend such funds as are appropriate to implement the items called
for in such budget for the Premises.  Any
such authorization to expend money shall be limited to the allocations specifically
set forth in the Approved Capital Budget.

 

Section 3.5                                   Employees.  Manager
shall have in its employ at all times a sufficient number of capable employees
to properly, safely, and economically carry-out the Operational
Activities.  All matters pertaining to
the employment, supervision, compensation, promotion, and discharge of such
employees are the sole responsibility of Manager.

 

(a)                                  Insurance. 
Manager shall fully comply with all applicable laws and regulations
pertaining to worker’s compensation insurance, social security insurance,
unemployment insurance, hours of labor, wages, working conditions (to the
extent the same are reasonably under Manager’s control), and other
employer-employee related subjects. 
Manager represents that it is and will continue to be an Equal
Opportunity Employer.

 

(b)                                 Employees of Manager.  All
persons employed at the expense of Owner in connection with the Operational
Activities shall be employees of Manager, consultants or independent
contractors retained by Manager.

 

3

 

(c)                                  Manager’s Employee Costs
Reimbursed.  After initial payment by Manager, Owner shall
reimburse Manager for all employee salaries, benefits (including, without
limitation, workers compensation insurance costs) and bonuses for those fully
or partially dedicated employees of Manager, all of which shall be part of the
Approved Operating Budget, and for which initial estimates are set forth on Exhibit B
of this Agreement.  Benefits charges
shall be fixed at 34% of the base salary and bonus of each employee.  The levels of employee compensation and
benefits (and the maximum levels of any bonuses) shall not exceed the amounts
for the individual, corresponding employee positions set forth in the Approved
Operating Budget.  Such employee
compensation, including benefits, may be increased annually to reflect actual
cost of living increases and individual merit raises, all as may be approved by
Owner in the Operating Budget.  Salaries,
bonuses and benefits shall be reimbursed every two weeks or as otherwise paid
by Manager.

 

In
addition to the costs set forth on Exhibit B, Owner will reimburse
Manager for a percentage of any employment severance payments incurred by
Manager for terminating an employee of Manager as a result of Owner’s
termination of this Agreement or Owner’s request that the number of Manager’s
personnel allocated to the Premises be reduced, with Owner’s percentage being
determined by comparing (1) the time such individual devoted to the
Operational Activities and (2) the terminated employee’s tenure with
Manager.  Owner will not be responsible
for reimbursing Manager for any severance payments (i) if this Agreement
or the applicable employee was terminated or removed for cause or (ii) made
to the terminated employee in excess of the standard payments due pursuant to
the then current severance program of Manager, or (iii) said termination
occurs after the first 12 months of the Agreement.

 

Section 3.6            Collection of Rents and Other Income.

 

Manager
shall use commercially reasonable efforts to collect all rents and other
charges which may become due from any tenant or from others for services
provided in connection with the use of the Premises.  Manager shall identify and collect any income
due Owner for miscellaneous services provided to tenants or to the general
public.  All sums so collected shall be
deposited in the Operating Account. 
Manager may, with the prior consent of Owner and at the expense of
Owner, employ counsel and/or a collection agency to assist in the collection or
enforcement of any right or remedy against any tenant who is in default in the
performance of its obligation under its lease. 
Expenses actually incurred by Manager in bringing any collection or
enforcement actions will be paid from the Operating Account or from Owner’s
funds if the Operating Account contains insufficient funds.  Manager shall not write-off any income items
greater than two dollars without the prior approval of Owner.

 

Section 3.7                                   Maintenance, Repairs,
Alterations.  Manager shall, at Owner’s sole cost and
expense, initiate and supervise all ordinary and extraordinary repairs,
decorations and alterations on or about the Premises, including (i) repairs
or alterations which Owner is required to make pursuant to the terms of tenant
leases and (ii) the administration of a preventative maintenance program
for all mechanical, electrical and plumbing systems and equipment for which
tenants are not solely responsible.

 

(a)                                  Operations and Maintenance. 
Manager shall undertake and supervise all operational activities of the
Premises for which tenants are not solely responsible such as, but

 

4

 

not
limited to: janitorial and cleaning work, window washing, metal and marble
maintenance; security of the Premises; landscaping; operation of HVAC and
electrical equipment; a preventative maintenance program; and any other
maintenance or repair activity to ensure operation of a quality project for
Owner and the tenants.

 

(b)                                 Emergency Repair and
Approved Repair Cost:  With respect to any expense not itemized in
the Approved Operating Budget, no single expenditure for any repair shall
exceed five thousand dollars ($5,000.00) without the prior written approval of
Owner, with the exception of emergencies relating to life support systems,
building safety or other emergencies threatening damage to persons or to the
Premises.  Manager may make such
emergency repairs as are necessary or advisable, at Owner’s expense, and shall
take all commercially reasonable efforts to immediately notify Owner of an
emergency event, the nature of the remedy implemented by Manager, and to the
extent such information is available, the cost of implementing such
remedy.  Actual expenses for materials
and labor for such purposes will be paid for from the Operating Account or by
Owner.

 

(c)                                  Hazardous Materials;
Violations of Law; Governmental Notices:  If Owner has previously
obtained any inspection reports regarding any Hazardous Materials (as
hereinafter defined), violations of any laws or ordinances or any governmental
notices regarding or otherwise relating to the Premises, all such reports shall
be furnished to Manager within five (5) days before the Commencement
Date.  Owner hereby warrants that, other
than the information contained in such reports, Owner has no other knowledge of
hazards in or upon the Premises.  Owner
acknowledges that Manager is not an environmental expert or consultant in the
field of Hazardous Materials.  Therefore,
with respect to any significant environmental conditions or issues pertaining
to Hazardous Materials at the Premises, Owner agrees and acknowledges that
Manager and its agents, officers, directors, partners, shareholders and
employees are not and shall not be deemed “operators” of such facility or any
tenant operations therein or thereon or “generators” or “transporters” (or have
any comparable legal status) for purposes of current or pending federal, state
or local laws pertaining to Hazardous Materials.  Accordingly, notwithstanding any provision
hereof to the contrary, with respect to any Hazardous Materials that may be
present below, on, under, in, about or otherwise affecting the Premises,
Manager shall not be responsible for detecting, handling, removing, remediating
or otherwise determining how to deal with such Hazardous Materials, and Manager
shall not in any way be responsible for the storage, transportation, disposal,
abatement, cleanup or removal of, or other dealings with, Hazardous Materials
(each a “Hazardous Activity”),
except for those Hazardous Materials, if any, used by Manager in the ordinary
course of conducting the Operational Activities.

 

(1)                                  Other Pre-Existing
Conditions and Defects.  In addition to the foregoing, Manager shall
not be responsible for detecting or dealing with any pre-existing conditions of
the Premises that may adversely affect the operations, maintenance or use of
such facility or the health or safety of persons or property.  Furthermore, Manager shall not be responsible
for detecting or dealing with structural or latent defects or other defects in
the design or construction of the Premises. 
Owner shall indemnify, defend and hold Manager harmless from and against
all Claims (defined below) asserted against or incurred by Manager to the
extent such Claims result from or arise out of any condition or circumstance
arising initially prior to the date of this Agreement (regardless of whether

 

5

 

such condition or circumstance continues) or that
otherwise is not a matter for which Manager has specifically agreed to
indemnify Owner pursuant to Section 4.3. 
The foregoing obligation to indemnify, defend and hold harmless Manager
shall apply regardless of the extent to which the corresponding costs, expenses
and liabilities otherwise are covered and paid by the insurance required to be
carried by Owner or Manager under this Agreement and shall survive the
expiration of the Term or termination of this Agreement.

 

(2)                                  Hazardous Activities. 
Manager and Owner acknowledge that, from time to time, there may be
Hazardous Materials that Manager is requested by Owner to clean up, dispose of,
remove or otherwise handle or deal with in some fashion, including materials or
substances that are not suspected to be Hazardous Materials but in fact are
Hazardous Materials.  If so requested by
Owner, Manager may elect to engage in a Hazardous Activity or refuse to do so
in its sole discretion.  Furthermore, if
Manager elects to engage in any Hazardous Activity, it may at any time cease
the performance of such Hazardous Activity. 
Neither the refusal to engage in a Hazardous Activity nor the
termination of a Hazardous Activity previously commenced shall be deemed in any
way to be a default or breach under this Agreement or otherwise subject Manager
to penalty or liability.

 

(3)                                  Hazardous Materials Defined.  As
used herein, “Hazardous Materials”
shall mean any hazardous material or substance which is or becomes defined as a
“hazardous waste,” “hazardous substance,” “hazardous material,” pollutant, or
contaminant under any federal, state or local statute, regulation, rule or
ordinance or amendments thereto including, without limitation, the
comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C.
§ 9601) as amended, and/or the Resource Conservation and Recovery Act (42
U.S.C. § 6901).

 

Section 3.8                                   Capital Expenditures.  The
Approved Capital Budget constitutes the authorization for Manager to proceed
with obtaining bids for capital improvements covered by the Approved Capital
Budget.  With respect to bids
contemplating expenditures in excess of five thousand dollars ($5,000.00)
Manager shall obtain the prior written approval of Owner prior to the awarding
of any such contract.  With respect to
the purchase and installation of major items of new or replacement equipment
and/or materials, when the cost exceeds ten thousand dollars ($10,000.00) for
any one item not included in the Approved Capital Budget, Manager shall
recommend to Owner the purchase of such items when Manager believes the same to
be necessary or desirable and shall obtain Owner’s approval prior to purchasing
such items.  Owner may pay for capital
expenses from its own resources or may authorize payment by Manager out of the
Operating Account.

 

Section 3.9                                   Service Contracts.  Manager
shall arrange on behalf of Owner for the cleaning, maintenance and services
needed by the Premises, but shall not enter into any contract or obligation in
connection with the management, operation, and maintenance of the Premises that
is not included in the Approved Operating Budget without the prior written
authorization of Owner (except as otherwise provided in this Agreement).  As a condition to obtaining authorization,
Manager shall supply Owner with a copy of the proposed contract and shall state
to Owner the relationship, if any, between Manager and the party proposed to
supply such goods

 

6

 

and/or
services.  If any bid is from a related
party, such bid must be accompanied by one (1) independent bid for the
same work.  Each such service contract
entered into by Manager shall not extend for more than one year, and shall
include a provision of cancellation thereof upon not more than thirty (30) days
written notice and without payment of any cancellation fee, unless otherwise
approved in writing by Owner, and shall require that all contractors provide
evidence of sufficient insurance.  All
service contracts are entered into by Manager, as Owner’s agent (for this
limited purpose, only), for the account and in the name of Owner and the funds
necessary to pay for the services so obtained shall be paid from the Operating
Account with funds advanced by Owner.

 

Section 3.10                            Compliance With Laws. 
(Subject to the provisions of Section 3.7(c), Manager shall, at
Owner’s expense, use commercially reasonable efforts to cause the operation of
the Premises to comply with any and all laws, ordinances, rules and
regulations affecting the Premises. 
Manager shall immediately notify Owner of any known violation of any
federal, state or municipal or other governmental law, ordinance, rule or
regulation due to the structure or condition of the Premises or the use made
thereof by any tenant, occupant or employee. 
If the expense of remedying any such violation is less than five hundred
dollars ($500.00), Manager may, (but shall have no obligation to) remedy such
violation and the expenses thereof shall be paid from the Operating
Account.  If the expense of remedying
such violation exceeds such amount, Manager shall not take any action with
respect to such violation except to notify Owner and await Owner’s written
instructions, unless relating to an emergency, building safety or other
emergency potentially threatening damage to persons or the Premises.  Manager shall not, in performance of its
services hereunder, knowingly violate, and shall comply in all material
respects with the terms of, any ground lease, space lease, mortgage, deed of
trust or other security instrument binding on or affecting any of the Premises,
provided that true and complete copies of such documents have been delivered to
Manager or Owner has otherwise disclosed such terms to Manager in writing.  If a conflict arises between the terms of any
such document and the terms of this Agreement, Manager shall not take any
action except to notify Owner and await Owner’s written instructions.  Manager shall not be required to make any
payment or incur any liability in order to comply with any such terms or
conditions of any such instruments.

 

Section 3.11                            Notification of Litigation.  If
Manager is notified of any claim, demand, suit or other legal proceeding made
or instituted against Owner on account of any matter connected with the
Premises, Manager shall give Owner all information in its possession pertaining
to such matter, and shall assist and cooperate with Owner, at Owner’s expense,
in all reasonable respects in the defense of any such suit or other legal
proceeding.  Owner shall reimburse
Manager for all reasonable expenses incurred by Manager on Owner’s behalf.

 

Section 3.12                            Management Office.  At
all times during the Term (and any Renewal Term), Owner shall provide to
Manager, at Owner’s sole cost and expense, (a) an on-site offices,
together with necessary furniture, fixtures and equipment, (including printers,
copiers, phones and fax machines) at the Premises for Manager’s sole use that
is suitable for the conduct of Manager’s duties hereunder, and (b) sufficient
computer systems for the conduct of Manager’s duties hereunder.  In addition, Owner shall, at Owners’ sole
cost and expense, provide technical support services and such connections as
are necessary to allow Manager to access Manager’s central corporate
server.  The initial cost of the on-site
furniture, fixtures, equipment and services to be provided to Manager pursuant
in the this section (“Management
Office Costs”) is set forth

 

7

 

in
Exhibit C attached hereto. 
If the on-site office and services are used by Manager to service other
properties of Owner (or an affiliate of Owner), the Management Office Costs
will be allocated among the Premises and such other properties in a manner
reasonably satisfactory to Owner and Manager. 
Upon reasonable advance notice to Manager, Owner may relocate the
on-site office from time to time to space of comparable or greater utility.

 

ARTICLE 4

INSURANCE AND INDEMNIFICATION

 

Section 4.1                                   Manager’s Insurance. 
Manager shall, at Owner’s expense, secure and maintain with one or more
insurance companies reasonably satisfactory to Owner, the following insurance:

 

(a)                                  Commercial general liability in an amount not
less than $1,000,000 combined single limit, per occurrence/ $2,000,000 annual
aggregate including coverage for:

 

(1)                                  premises-operations;

 

(2)                                  products/completed operations;

 

(3)                                  blanket contractual liability;

 

(4)                                  broad form property damage;

 

(5)                                  independent contractors; and

 

(6)                                  personal injury.

 

(7)                                  E&O Coverage $1,000,000 single occurrence
$2,000,000 annual

 

(8)                                  Joint Loss Payee – Dishonesty Bond

 

(b)                                 Worker’s compensation and employer’s
liability insurance covering all employees of Manager in accordance with state
law.

 

(c)                                  Employers’ liability in an amount of not less
than $1,000,000.

 

(d)                                 Employee Fidelity Bond of not less than
$2,000,000.

 

(e)                                  Manager shall provide non-owned or hired
automobile liability insurance with bodily injury limits of not less than One
Million Dollars ($1,000,000) per person and Two Million Dollars ($2,000,000)
per accident and property damage limits of not less than One Million
($1,000,000) combined single limit.

 

Upon Owner’s request, Manager shall furnish
satisfactory evidence of the foregoing insurance to Owner.  Manager shall also require all contractors
and subcontractors performing work on, in, or about the Premises to maintain
the coverages outlined in this Section 4.1,  Any contractors or sub contractor having less
coverage will not be hired without prior approval of the property owner.

 

8

 

Section 4.2                                   Owner’s Insurance. 
Owner, at its own expense, will maintain and keep in force insurance
complying with the minimum requirements described below:

 

(a)                                  Commercial property insurance covering the
full replacement cost of the building, fixtures, equipment and improvements and
betterments located at the Premises. 
Such insurance shall cover the perils insured under the special causes
of loss form or other “all risk” form and include flood, earthquake and
terrorism perils.

 

(b)                                 Loss of rental income, business interruption
and extra expense coverage or similar insurance protecting Owner for any lost
income due to damage to the Premises.

 

(c)                                  Boiler and machinery insurance covering the
building, fixtures and equipment located at the Premises for mechanical failure
of any property or explosion of pipes or steam boilers.  Such insurance shall include loss of use
coverage/business interruption due to these failures.

 

(d)                                 Commercial general liability and umbrella
coverage with a combined limit of not less than $10,000,000 for each occurrence.

 

Manager shall be named as an additional insured with
respect to Owner’s commercial general liability and umbrella policies, and such
insurance shall apply as primary insurance with respect to any other insurance
available to Owner or Manager.  Such
insurance shall insure against losses for damage to the Premises or injury to
persons which arise out of the management, operation, occupancy, leasing, or
maintenance of the Premises or any activity on the Premises.

 

Each of Owner and Manager agrees (for themselves and
on behalf of their insurers) to waive all rights of recovery and subrogation
rights against the other, its agents, servants or employees for any loss or
damage which is required to be covered under an insurance policy required to be
maintained under this Agreement. 
Notification of the existence of this waiver shall be disclosed to each
party’s insurers, and each of Manager and Owner shall cause such insurers to
issue the appropriate endorsement(s) to such policies in order to comply with
this paragraph.  This provision shall
also apply with respect to any insurance policies presently maintained and
substituted hereafter.  Within five
business days following the Commencement Date, each of Owner and Manager will
provide a certificate of insurance to the other party evidencing all
requirements set forth in this Section 4.2.

 

Section 4.3                                   Hold Harmless and Indemnity. 
Owner agrees to defend, indemnify and hold Manager and its agents
harmless from any liabilities, claims, demands or legal proceedings (including
the costs, expenses and reasonable attorneys’ fees incurred in defending such
matters, collectively, “Claims”)
arising from the leasing, management and operation of the Premises, except to
the extent such liabilities, claims, demands or legal proceedings are caused
by, relate to or arise from (a) the grossly negligent acts or willful
misconduct of Manager or Manager’s agents, employees, or representatives; or (b) acts
or omissions of Manager or Manager’s agents, employees or representatives which
are outside the scope of services to be rendered by Manager pursuant to this
Agreement, for which Manager agrees to indemnify and hold Owner harmless.

 

9

 

Manager
shall provide such indemnification except for actions or events which should be
covered under Owner’s insurance specified in Section 4.2 above.

 

In addition, Owner shall indemnify and hold Manager
harmless for failure to pay any charges against the Premises to the extent that
necessary funds for such payment are not made available to Manager by Owner
upon request therefor by Manager.

 

This indemnity provision shall survive the
termination or expiration of this Agreement. 
If any proceeding is filed for which indemnity is required hereunder,
Owner agrees, upon request therefor, to defend Manager in such proceeding at
its sole cost, utilizing counsel satisfactory to Manager.  Manager and Owner shall be liable under this Section 4.3
only to the extent of the respective obligations specifically imposed upon them
hereunder.  In the event of an occurrence
that triggers both Manager’s and Owner’s indemnification obligations hereunder,
each party’s liability (including liability for defense costs) shall be equal
to the percentage determined to be due to the unindemnified fault of such party
as agreed upon by the parties, as fixed by settlement agreement, as set forth
in a final judgment of a court of competent jurisdiction, or as determined by
an arbitrator or arbitration panel in an arbitration proceeding, as applicable.

 

ARTICLE 5

MANAGER’S COMPENSATION

 

Section 5.1                                   Management Fee. 
Owner shall pay Manager a monthly management fee as identified in Exhibit E
hereto (the “Management Fee”).  If the Commencement Date is not on the first
day of a calendar month, or if the Term expires (or if this Agreement is
terminated) on any day other than the last day of a calendar month, then the
Management Fee for such partial month(s) shall be determined by calculating the
Management Fee for the entire month (as though this Agreement were in effect
for the entirety of such month) and multiplying it by a fraction, the numerator
of which is the number of days during such month that this Agreement was
effective, and the denominator of which is the number of days in such month.
Manager shall exclude any revenue due to utility bill backs of certain tenants.

 

Section 5.2                                   Gross Revenues.

 

(a)                                  For the purposes of computing the Management
Fee, “Gross Revenues” shall
mean the total collections received from the Premises, including, but not
limited to, all rents paid by tenants, including percentage or overage rents,
escalations; operating expense pass-through components; utility income; income
from the operation of concessions; parking revenues; payments for lease
cancellations; proceeds from rental interruption or abatement insurance;
security deposits applied to the payment of rent after a tenant defaults or
applied to a tenant’s lease for any rent, and any other income derived from the
utilization or operation of the Premises.

 

(b)                                 Gross Revenues shall exclude:

 

(1)                                  Withdrawals from the Security Deposits on
account of damage resulting from tenant misuse of or damage to the Premises.

 

10

 

(2)                                  Receipts from the sale of assets, settlement
of fire losses or liability claims, condemnation proceeds or items of a similar
nature.

 

(3)                                  Rebates, discounts or other credits received
by Manager in connection with purchases of goods, service contracts or other
arrangements entered into pursuant to this Agreement for the account of Owner,
which items shall accrue solely to the benefit of Owner.

 

Section 5.3                                   Compensation of Manager for
Other Services.

 

(a)                                  Construction Management - Manager shall receive a construction
supervision fee calculated in accordance with Exhibit F hereto (the
“Construction Management Fee”).  Owner acknowledges that Manager’s role with
respect to any construction conducted at the Premises is managerial in nature
and that Manager shall not provide any physical construction services except
pursuant to a separate, written agreement. 
The Construction Management Fee shall be due payable as contractors are
paid for construction activities.

 

(b)                                 Additional Services - Manager shall be compensated for
Additional Services as follows:

 

(1)                                  Owner acknowledges that due diligence work
relating to sale or refinancing of the Premises, including generating,
reviewing or analyzing accounting or other financial reports, generating or
reviewing estoppels and delivery and collection thereof from tenants, compiling
copying and transmitting information to prospective purchasers or lenders and
settlement sheet preparation and review are outside the scope of this
Agreement.  Owner and Manager shall
negotiate a fee for these services as required.

 

(2)                                  Mobile maintenance engineering for part time
projects will be billed at $42.00 per hour inclusive of all cost (travel,
radios, uniforms, after hour service) as approved in the annual budget.

 

ARTICLE 6

TERM AND TERMINATION

 

Section 6.1                                   Term.  This
Agreement shall commence on the Commencement Date and shall continue for a
period of twelve (12) months (the “Term”)
and, unless written notice to the contrary is given by either party hereto not
less than 60 days prior to the end of the Term (or any Renewal Term), this
Agreement shall automatically be renewed for additional, successive twelve (12)
month periods (each a “Renewal Term)”
on its then-existing terms and conditions.

 

Section 6.2                                   Early termination   If
Owner terminates this Agreement within the first 6 months, Owner shall pay to
Manager an amount equal to the difference of the Management Fees collected and
those Management Fees earned if the Agreement was through the first six months.

 

11

 

Section 6.3                                   Termination By Sale.  If
Owner sells, transfers, or conveys title to all or substantially all of the
Premises to a bona-fide, non-related party, either party may terminate this
Agreement upon sixty (60) days’ prior written notice to the other party.  Owner hereby represents and warrants that, as
of the date of this Agreement, Owner has no intention to sell, transfer, or
otherwise convey the Premises within the next six (6) months following the
Commencement Date.  Owner has listed and
intends to sell AmeriVest Plaza at Inverness and Panorama Falls as soon as
possible.

 

Section 6.4                                   Termination By Default. 
Notwithstanding anything to the contrary set forth herein, in the event
Owner or Manager shall default with respect to any material covenant, term or
provision of this Agreement, and the same shall not be cured or corrected
within sixtey (60) days following the receipt of written notice from the
non-defaulting party specifying the nature of such default, then the
non-defaulting party may terminate this Agreement upon ten (10) days’
written notice to the defaulting party.

 

Section 6.5                                   Manager’s Obligations After
Termination.  Upon the termination of this Agreement
Manager shall:

 

(a)                                  Deliver Records And Keys: 
Deliver to Owner, or such other person or persons designated by Owner,
copies of all books and records pertaining to the Premises and all funds in the
possession of Manager belonging to Owner or received by Manager pursuant to the
terms of this Agreement (but excluding all fees and expenses paid to Manager
pursuant to this Agreement), and all keys or combinations to locks then in
Manager’s possession.

 

(b)                                 Termination of Obligations;
Rights to Compensation:  Upon any termination pursuant to this Article 6,
the respective obligations of the parties hereto shall cease as of the date
specified in the notice of termination (except for those obligations which, by
their terms, survive the expiration or termination of this Agreement);
provided, however, that Manager shall be entitled to receive any and all
compensation which may be due Manager hereunder at the time of such
termination.  Such compensation shall
include any fees set forth in Article 5 (whether Management Fees or
otherwise) and all expenses reimbursable to Manager pursuant to the terms of
this Agreement, each prorated as of the date of termination.

 

Section 6.6                                   Final Accounting.

 

(a)                                  Manager shall, within thirty (30) days of the
date of expiration or termination of this Agreement, deliver to Owner, at Owner’s
expense, the following:

 

(1)                                  All executed leases, receipts for deposits,
insurance policies, unpaid bills, correspondence and other documents, books and
records, which are the property of Owner in the possession of Manager.

 

If
Owner does not object in writing (specifying with reasonable detail the bases
for such objections) delivered to Manager within thirty (30) days following
Owner’s receipt of the foregoing, Owner shall be deemed to have approved all of
the foregoing and Manager shall be deemed to have fully performed all of its
obligations under this Agreement and shall be fully released by Owner from any
and all liability or obligation to Owner under this Agreement.  Any financial reporting requested by Owner
after the expiration or termination of this Agreement

 

12

 

(other
than the final accounting) shall be prepared by Manager at an hourly rate equal
to the fully-loaded costs of personnel performing such services.

 

ARTICLE 7

NOTICES AND ASSIGNMENTS

 

Section 7.1                                   Notice.  All
notices, demands, consents, and reports provided for in this Agreement shall be
in writing and shall be given to Owner or Manager at the addresses set forth
below or at such other address as they individually may specify hereafter in
writing:

 

	
  Owner:

  	
   

  	
  AmeriVest Properties Inc.

  
	
   

  	
   

  	
  1780 S. Bellaire St. Suite 100

  
	
   

  	
   

  	
  Denver, CO 80222

  
	
   

  	
   

  	
  Attn: Don Hamilton

  
	
   

  	
   

  	
  E-Mail: donh@amvproperties.com

  
	
   

  	
   

  	
   

  
	
  Manager:

  	
   

  	
  Trammell Crow Services, Inc.

  
	
   

  	
   

  	
  8390 East Crescent Parkway Ste 300

  
	
   

  	
   

  	
  Greenwood Village, CO 80111

  
	
   

  	
   

  	
  Attn: Bruce Backstrom

  
	
   

  	
   

  	
  E-Mail: bbackstrom@trammellcrow.com

  
	
   

  	
   

  	
   

  
	
  copy to:

  	
   

  	
  Trammell Crow Services, Inc.

  
	
   

  	
   

  	
  2001 Ross Avenue, Suite 3400

  
	
   

  	
   

  	
  Dallas, Texas 75201

  
	
   

  	
   

  	
  Attn: General Counsel

  

 

Any
such notice or other communication shall be deemed received immediately upon
delivery in person or three (3) days after being deposited in the United
States mail, registered or certified mail, return receipt requested, postage
prepaid, addressed to the foregoing address(es).  All notices may be delivered by electronic
mail, and such notices shall be deemed received immediately upon effective
transmittal.

 

Section 7.2                                   Permitted Assignment. 
Notwithstanding any other provision of this Agreement, Manager shall be
permitted to assign all of its right, title and interest in and to this
Agreement to any other entity that is directly or indirectly wholly-owned by
Trammell Crow Company, a Delaware corporation (“TCC”).  Such
permitted assignment shall include any assignment that may be deemed to occur
by operation of law in connection with any merger or consolidation of TCC
entity with and/or into any other entity directly or indirectly wholly-owned by
TCC (an “Intragroup Merger”).  Any such Intragroup Merger shall not be
deemed a breach of, cause a default under or trigger any right of termination
under, any other provision of this Agreement.

 

ARTICLE 8

MISCELLANEOUS

 

Section 8.1                                   Delegation of Responsibility
for Operational Activities.  Owner agrees and acknowledges that Manager
may delegate all or any part of its obligations under this Agreement

 

13

 

to
a regional affiliate of Manager. 
Notwithstanding the foregoing, Manager shall continue to be liable under
this Agreement for the performance of the Operational Activities.

 

Section 8.2                                   Conflicts of Interest. 
Owner and Manager acknowledge that Manager or an affiliate may be
involved in representing other persons in real estate transactions involving
Owner or its affiliates or involved in the ownership or management of certain
facilities.  In the event of a conflict
between Manager’s representation of Owner under this Agreement with respect to
such transaction and the obligations of Manager or its affiliate to another
person with respect to such transaction, at Owner’s request, Manager shall
establish appropriate internal procedures to prevent any communication or
collusion between those employees of Manager or Manager’s affiliates who
represent parties in such transactions in which such a conflict of interest may
exist, or Owner may require that Manager withdraw from its representation of
Owner with respect to such transaction. 
Further, Owner acknowledges that Manager or Manager’s affiliates own
interests in persons with whom Owner or Manager may transact business pursuant
to this Agreement (such as SiteStuff, Inc., a web-based procurement
platform, workplace IQ, an application service provider that licenses the WPIQ
real estate database management software, TCC General Agency, Inc., an
insurance agency through whom Manager purchases insurance, and Raven Insurance
Company, Ltd., a foreign insurance company providing reinsurance).  Owner has made such inquiries as it may
desire and has satisfied itself with respect thereto, and Owner waives any
claims arising or that may arise from such conflicts of interest.

 

Section 8.3                                   Non-Solicitation. 
Owner acknowledges that Manager’s employees in a supervisory position
with respect to the Operational Activities (collectively, the “Key Manager Personnel”) are essential
to Manager’s core business of providing management services and are familiar
with Manager’s operating procedures and other information proprietary to
Manager.  Therefore, without Manager’s
prior written consent, Owner agrees that neither Owner nor any affiliate of
Owner shall directly or indirectly (including, without limitation, assisting
any third party service provider to) solicit for employment, solicit to hire,
employ, hire, make any agreement with, or permit the employment of, any person
who is or has been a member of the Key Manager Personnel within the earlier of
twelve (12) months after such employee terminates employment with Manager or
twelve (12) months after the expiration or earlier termination of this
Agreement.  Owner also acknowledges that
a breach of the obligations set forth in this Section would irreparably
harm Manager’s business and leave Manager without an adequate remedy at law,
and that Manager would be entitled to seek injunctive relief to enforce the
terms of this Section.  This provision
shall survive the expiration or earlier termination of this Agreement.

 

Section 8.4                                   Signs. 
Manager may place and remove, or cause to be placed and removed, such
signs upon the Premises which Manager deems appropriate including, without
limitation, a sign announcing that the Premises is under Manager’s management.

 

Section 8.5                                   Pronouns.  The
pronouns used in this Agreement that refer to Manager shall be understood and
construed to apply whether Manager be an individual, partnership, limited
liability company, corporation or an individual or individuals doing business
under a firm or trade name.

 

14

 

Section 8.6                                   Amendments. 
Except as otherwise herein provided, any and all amendments, additions
or deletions to this Agreement shall be ineffective unless memorialized in an
instrument signed by both Owner and Manager.

 

Section 8.7                                   Headings.  All
headings used herein are inserted only for convenience and ease of reference
and are not to be considered in the construction or interpretation of any
provision of this Agreement.

 

Section 8.8                                   Representations. 
Manager represents and warrants that it has authority to enter into this
Agreement and perform all obligations of Manager hereunder.  Owner represents and warrants it has lawful
possession of the Premises and it has authority to enter into this Agreement.

 

Section 8.9                                   Complete Agreement.  This
Agreement constitutes the entire agreement between the parties with respect to
the subject matter herein stated and supersedes and takes the place of any and
all previous management agreements pertaining to the Premises entered into
between the parties hereto.

 

Section 8.10                            Governing Law.  This
Agreement shall be governed by and construed in

 

Section 8.11                            Attorney’s Fees. 
Should any dispute occur between Owner and Manager with respect to this
Agreement which results in litigation, the losing party shall pay the
prevailing party its attorneys’ fees and costs in connection therewith.

 

Section 8.12                            Waiver of Jury Trial.  Each
party hereto, knowingly and voluntarily, and for their mutual benefit, waives
any right to trial by jury in the event of litigation regarding the performance
or enforcement of, or in any way related to, this Agreement.  Notwithstanding any provision of this
Agreement to the contrary, neither party hereto shall be liable for any lost or
prospective profits or any other indirect, consequential, special, incidental,
punitive or other exemplary losses or damages, whether in tort, contract or
otherwise, regardless of the foreseeability or the cause thereof.

 

Section 8.13                            Force Majeure. 
Whenever a period of time is herein prescribed for action to be taken by
either party hereto, such party shall not be liable or responsible for, and
there shall be excluded from the computation of any such period of time, any
delays due to strikes, riots, acts of God, shortages of labor or materials,
war, terrorist acts or activities, governmental laws, regulations, or
restrictions, or any other causes of any kind whatsoever which are beyond the
control of such party.

 

Section 8.14                            OFAC. 
Owner and Manager each represent and warrant to the other (for
themselves, only) that each is currently in compliance with, and shall at all
times during the term of this Agreement (including any extension thereof)
remain in compliance with, the regulations of the Office of Foreign Asset
Control (“OFAC”)of the
Department of the Treasury (including those named on OFAC’s Specially
Designated and Blocked Persons List) and any statute, executive order
(including the September 24, 2001, Executive Order Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or
Support Terrorism), or other governmental action relating thereto.

 

15

 

Section 8.15                            Additional Premises. 
Owner and Manager may from time to time, following the execution of this
Agreement, amend the exhibits to this Agreement to add additional Premises that
will be managed by Manager in accordance with the terms of this Agreement.  Any such amendment shall set forth any
adjustments to the payments due Manager hereunder, including, without
limitation, changes to the Management Fee, as may be determined by the mutual
agreement of Owner and Manager.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

16

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the date first above written.

 

	
  MANAGER:

  	
  OWNER:

  
	
   

  	
   

  
	
  TRAMMELL CROW SERVICES, INC.,

  	
  AmeriVest Properties Inc

  	
   

  
	
  a Delaware corporation

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ BRUCE BACKSTROM

  	
   

  	
  By:

  	
   /s/ CHARLES K. KNIGHT

  	
   

  
	
  Print Name: Bruce Backstrom, Senior VP

  	
  Print Name:

  	
  Charles K. Knight 

  	
   

  
	
   

  	
  Its:

  	
  CEO

  	
   

  
									

 

[SIGNATURE PAGE FOR LIMITED SCOPE PROPERTY
MANAGEMENT AGGEEMENT]

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

17

 

EXHIBIT A

 

DESCRIPTION OF REAL PROPERTY

 

1.               Centerra – 1873 South Bellaire St.  Denver, CO 80222

 

2.               Sheridan – 1777, 1780, and 1805 South
Bellaire St.  Denver, CO 80222

 

3.               Panorama – 9085 East Mineral Circle,
Centennial, CO 80113

 

4.               Kellogg – 26 West Dry Creek Circle,  Littleton, CO 80120

 

5.               AmeriVest Plaza – 383 and 385 Inverness Drive
Parkway,  Englewood, CO 80112

 

A-1

 

EXHIBIT B

EMPLOYEE COSTS

 

Management:

 

	
  Property

  	
   

  	
  Employee

  	
   

  	
  Base Salary

  	
   

  	
  Bonus

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerra

  	
   

  	
  Judy Duran,
  Senior PM

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sheridan

  	
   

  	
  Sarah
  Simmons, PM

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Panorama

  	
   

  	
  Sarah
  Simmons, PM

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kellogg

  	
   

  	
  TBD

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   *

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AmeriVest
  Plaza

  	
   

  	
  TBD

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   *

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  All
  Properties

  	
   

  	
  Pam Jones,
  TSC

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  

 

*
We will be looking for a new manager in the $*** - $*** range and a ***% or ***%
bonus availability based on the final base salary.  The Summary above anticipates a $*** base and
***% bonus availability.

 

Maintenance

 

	
  Centerra

  	
   

  	
  Chris
  Hollerback

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sheridan

  	
   

  	
  Julio
  Figueroa

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Panorama

  	
   

  	
  Steven
  Thompson

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AmeriVest
  Plaza

  	
   

  	
  Steven
  Thompson

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kellogg

  	
   

  	
  Todd
  Montgomery

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  

 

Note:  Annual pay raises for the above employees
will be handled per the annual budget. 
Benefits are as per outlined in Section 3.5c.

 

***The
confidential portion of this Agreement has been omitted and filed separately
with the Securities and Exchange Commission.

 

B-1

 

EXHIBIT C

 

MANAGEMENT OFFICE COSTS

 

AmeriVest will cover all
costs associated with the management offices per the annual budgets.

 

C-1

 

EXHIBIT D

 

SOFTWARE REQUIREMENTS

 

AmeriVest will cover all
costs associated with the software requirements per the annual budgets.

 

D-1

 

EXHIBIT E

 

MANAGEMENT
FEE

 

Owner
shall pay Manager a monthly management fee as identified in an amount equal to
the greater of (a) one point eight percent (1.8%) of the monthly Gross
Revenues (as defined in Section 5.2) for the preceding month for any month
during the term hereof or (b) the following monthly minimums per property:

 

Centerra – Three thousand six hundred and 00/100 Dollars ($3,600)

 

Sheridan – Two thousand six hundred and 00/100 Dollars ($2,600.)

 

Kellogg – Two thousand four hundred and 00/100 Dollars ($2,400)

 

Amerivest Plaza – Two thousand seven hundred and 00/100
Dollars ($2,700)

 

Panorama Falls – One thousand two hundred and 00/100
Dollars ($1,200)

 

Manager
agrees that additional income due to utility reimbursement for Touchstone
Imaging in Suites 105 & 106 at Kellogg will not be included in the
management fee calculation.

 

E-1

 

EXHIBIT F

 

CONSTRUCTION MANAGEMENT FEE

 

The Construction Management Fee shall equal the
following percentages of all construction costs, including architectural and
engineering consulting fees, permits and reproduction costs, incurred in
conjunction with any construction, including, but not limited to, capital
repairs and improvements, major building reconstruction, and tenant
improvements and repairs associated with the project:

 

	
  Cost of Construction:

  	
   

  	
  Construction Management Fee:

  	
   

  
	
  $0 through
  $10,000

  	
   

  	
  0

  	
  %

  	
   

  
	
  $10,001
  through $100,000

  	
   

  	
  5

  	
  %

  	
   

  
	
  $100,001
  through $400,000

  	
   

  	
  4

  	
  %

  	
   

  
	
  Over
  $400,000

  	
   

  	
  3

  	
  %

  	
   

  

 

If a tenant is performing its tenant improvement work
and paying a construction management fee approved by Owner, then Manager shall
only be responsible for monitoring the work as Owner’s representative and, in
such instance, will receive a construction management fee equal to the lesser
of two and one half percent (2.5%) of the amount of the total costs of the
project or $5,000.00

 

F-1

 

EXHIBIT G

SCOPE OF
WORK

 

The following outlines the scope of work that
Trammell Services Inc. will provide to Owner for the management of Property:

 

A.                                   Property Maintenance

1.                                       Regular physical inspections of the property,
with focus on areas of risk, liability and vendor performance.  Written inspection reports to be sent to the
Manager and Owner on a monthly basis.

2.                                       Contract Services

a)                                      prepare specifications

b)                                     solicit multiple bids

c)                                      negotiate with vendors and prepare contracts

d)                                     supervision of contractors

3.                                       Contract and administration of emergency
repairs

4.                                       Tenant service calls/24 hour 7 day on-call
service

a)                                      answer calls

b)                                     prepare work order

c)                                      direct and supervise maintenance staff
including maintenance technician and day porter, including but not limited to,
regulating after-hours weekend access.

5.                                       Tenant Relations – Tenant Handbook – Visit
with Tenants

6.                                       Supervise and Change Life Safety Plan as
Required

7.                                       Review and Discuss Code Issues with
Government Agencies

8.                                       Consult with ownership on Energy Management
issues

9.                                       Assist Ownership with Risk Management Plan

10.                                 Receive and approve invoices for payment
using Owner’s chart of accounts. 
Such invoices shall be sent to the Manager’s office for payment.

11.                                 Assist with customer service initiatives
established by Owner including special training sessions.  Travel and other costs associated with this
initiative will be paid by Owner.

12.                                 Facilitate sale including, but not limited
to, conducting property tours, providing due diligence material to prospective
buyers.

 

G-1

 

THIS FORM HAS
NOT BEEN APPROVED OR PROMULGATED BY THE

COLORADO REAL ESTATE COMMISSION BUT HAS BEEN PREPARED BY THE

LAW FIRM OF BROWNSTEIN HYATT & FARBER, P.C.

 

COLORADO RIDER TO PROPERTY MANAGEMENT AGREEMENT

 

This rider (“Rider”)
is incorporated into and made a part of that certain Limited Scope Property Management Agreement dated as of August, 25, 2005 (the “Agreement”) by and between Trammell
Crow Services Inc., as Property Manager (“Property
Manager”), and Amerivest, Inc., as owner (“Owner”) and Broker (as such term is
hereinafter defined).

 

1.                                       Governing Law. 
Owner and Property Manager agree that in the event of a conflict between
the terms of this Rider and the terms of the Agreement, the terms of this Rider
shall control as to all matters governed by Colorado law and all properties
located in the State of Colorado.

 

2.                                       Designated Broker. 
Owner acknowledges and agrees that the below-listed individual(s) (each,
a “Broker”, and,
collectively, the “Brokers”)
shall serve as the limited agent(s) of Owner to perform any and all listing,
marketing, advertising, rental and leasing services, if any, required by Owner
as set forth in the Agreement and this Rider (collectively, the “Broker Services”).  If more than one Broker is listed below, then
references in this Rider and in the Agreement to “Broker” shall include all
persons listed below, including substitute or additional individuals.  Owner acknowledges and agrees that any agency
relationship created by the Agreement and this Rider exists only with Broker
and does not extend to Property Manager or to any other brokers employed or
engaged by Manager who are not so designated in a properly executed amendment
or addendum to the Agreement.

 

Bruce Backstrom

 

3.                                       Choice of Relationship. 
Different brokerage relationships are available under Colorado law.  Owner acknowledges and agrees that Broker
may, from time to time, deal with both Owner and a tenant or potential tenant
(a “Tenant”) of the
property which is the subject of the Agreement (the “Premises”).  In such event, Owner and Broker acknowledge
and agree that Broker shall act and represent Owner solely in the capacity set
forth next to the box checked below.

 

•                  Landlord’s Agent.  If
this box is checked, Broker shall represent Owner as landlord’s agent and shall
treat Tenant as a Customer (as defined below). 
If this box is checked, Broker’s duties and obligations to Owner shall
be as set forth on Exhibit A to this Rider.  A “Customer”
is a party to a transaction with whom Broker has no brokerage
relationship.  Broker shall disclose to such
Customer Broker’s relationship with Owner.

 

•                  Landlord’s Agent Unless
Brokerage Relationship with Both.  If this box is checked, Broker
shall represent Owner as landlord’s agent, Broker’s duties and obligations to
Owner shall be as set forth on Exhibit A and Broker shall treat
Tenant as a Customer, unless Broker currently has or enters into an
agency or Transaction Broker relationship

 

G-2

 

with Tenant, in which case Broker shall act as a
Transaction Broker and Broker’s duties and obligations to Owner shall be as set
forth on Exhibit B to this Rider.

 

•                  Transaction Broker.  If
this box is checked, Broker shall (if also permitted by Tenant) act as a
Transaction Broker.  If this box is
checked, Broker’s duties and obligations to Owner shall be as set forth on Exhibit B
to this Rider.  When acting as a
Transaction Broker, Broker assists the parties throughout a contemplated real
estate transaction with communication, interposition, advisement, negotiation,
contract terms and the closing of the transaction without being an agent or
advocate for the interests of either party to the transaction.  

 

4.                                       Broker Not Property Manager. 
Notwithstanding anything in the Agreement or this Rider to the contrary,
in no event shall Broker be liable to Owner or responsible for any services,
obligations or duties imposed by the Agreement or this Rider except for the
Broker Services; provided, however, that Broker shall be bound by any
confidentiality and non-disclosure provisions of the Agreement except as
otherwise required by Colorado law.

 

5.                                       Owner’s Acknowledgement.  By
its signature below, Owner acknowledges that Property Manager and Broker have
informed Owner that (a) the designation of agency relationship set forth
in Section 3 of this Rider has legal consequences and has advised Owner to
consult Owner’s legal counsel regarding such consequences, and (b) pursuant
to C.R.S. §§ 12-61-804 and 12-61-807, Owner, in its capacity as landlord
of the Premises, shall not be vicariously liable for the acts of Broker that
are not ratified, approved or directed by Owner.

 

6.                                       Operating Accounts.  If
the Agreement provides that security deposits for the Premises shall be
forwarded directly to Owner or are to be kept in an account in Owner’s name or
an account which is the sole and exclusive property of Owner (e.g., not a trust account or Property
Manager’s account) (an “Owner Security
Deposit Account”), then the following provisions shall apply:

 

a.                                       Owner shall be a signatory on any Owner Security
Deposit Account and Owner shall be solely liable for the return of any security
deposit to the applicable Tenant at the Premises.

 

b.                                      Owner hereby authorizes Manager to disclose
Owner’s name and mailing address to any Tenant upon such Tenant’s inquiry.

 

c.                                       Pursuant to Colorado law, the deposit of
security deposits into an Owner Security Deposit Account or the forwarding of
such Security Deposits directly to Owner must be disclosed to all Tenants.  In the event that such disclosure is not made
in the applicable Tenant lease(s), Owner acknowledges that Property Manager
shall, prior to depositing any security deposit into an Owner Security Deposit
Account or forwarding any security deposit directly to Owner, notify the
applicable Tenant(s) of such action in writing.

 

G-3

 

[Signatures on next page]

 

G-4

 

 

	
  [OWNER]

  
	
   

  
	
  AMERIVEST PROPERTIES INC.

  
	
   

  
	
  By:

  	
  /s/ Charles K. Knight

  	
   

  
	
  Name:

  	
  Charles K. Knight

  	
   

  
	
  Title:

  	
  CEO

  	
   

  
	
   

  
	
  [PROPERTY MANAGER]

  
	
   

  
	
  Trammell Crow Services Inc.,

  
	
  A Delaware company

  
	
   

  
	
   

  
	
  By:

  	
   

  	
  /s/ BRUCE BACKSTROM

  	
   

  
	
  Name: Bruce Backstrom

  
	
  Title: Senior Vice President

  
	
   

  
	
   

  
	
  By:

  	
   

  	
  /s/ BRUCE BACKSTROM

  	
   

  
	
  Name: Bruce Backstrom

  
	
  Designated Broker

  
							

 

 

[Signature Page to Colorado Rider to
Property Management/Leasing

or Property Management (only) Agreement]

 

G-5

 

EXHIBIT A TO RIDER

 

Landlord’s
Agent

 

The following duties and obligations of Broker are (i) solely
in connection with the Premises, and (ii) in addition to the Broker
Services set forth in the Agreement and the Rider.

 

1.                                       To perform the terms of the written agreement
made with Owner;

 

2.                                       To exercise reasonable skill and care of
Owner;

 

3.                                       To promote the interests of Owner with the
utmost good faith, loyalty, and fidelity, including, but not limited to:

 

(a)          Seeking a price and terms which are acceptable to Owner; except that
Broker shall not be obligated to seek additional offers to purchase the
Premises, or any portion thereof, while the Premises is subject to a contract
for sale or to seek additional offers to lease the Premises while the Premises
is subject to a lease or letter of intent to purchase or lease;

 

(b)         Presenting all offers to and from Owner in a timely manner regardless
of whether the Premises is subject to a contract for sale or a lease or letter
of intent to purchase or lease;

 

(c)          Disclosing to Owner adverse material facts actually known by Broker;

 

(d)         Counseling Owner as to any material benefits or risks of a transaction
which are actually known by Broker;

 

(e)          Advising Owner to obtain expert advice as to material matters about
which Broker knows but the specifics of which are beyond the expertise of such
Broker;

 

(f)            Accounting in a timely manner for all money
and property received in connection with Broker Services; and

 

(g)         Informing Owner that Owner shall not be vicariously liable for the acts
of such Owner’s agent that are not approved, directed, or ratified by Owner.

 

4.                                       To comply with all requirements of and any rules promulgated
pursuant to C.R.S. §12-61-804;

 

5.                                       To comply with any applicable federal, state,
or local laws, rules, regulations, or ordinances including fair housing and
civil rights statues or regulations;

 

6.                                       Broker owes no duty or obligation to a buyer
or a Tenant; except that Broker shall, subject 
to the limitations of C.R.S. § 38-35.5-101, concerning
psychologically impacted property, disclose to any prospective buyer or Tenant
all adverse material facts actually known by Broker;

 

7.                                       Broker owes no duty to conduct an independent
inspection of the Premises, or any portion thereof, for the benefit of a buyer
or Tenant and owes no duty to independently verify the accuracy or completeness
of any statement made by Owner or any independent inspector;

 

8.                                       Broker may show alternative properties not
owned by Owner to prospective buyers or Tenants and may list competing
properties for sale or lease and not be deemed to have breached any duty or
obligation to Owner;

 

9.                                       Broker may cooperate with other brokers but
may not engage or create any subagents; and

 

10.                                 The following information shall not be
disclosed by Broker without the informed consent of Owner:

 

(a)          That Owner is willing to accept less than the asking price or lease
rate for the Premises or any portion thereof.

 

(b)         What the motivating factors are for the party selling or leasing the
Premises or any portion thereof;

 

(c)          That Owner will agree to financing terms other than those offered;

 

(d)         Any material information about Owner unless disclosure is required by
law or failure to disclosure such information would constitute fraud or
dishonest dealing; or

 

(e)          Any facts or suspicions regarding circumstances which may
psychologically impact or stigmatize any real property pursuant to C.R.S. § 38-35.5-101.   SEE
C.R.S. § 12-61-804

 

 

EXHIBIT B TO RIDER

 

Transaction
Broker

 

The following duties and obligations of Broker are (i) solely
in connection with the Premises, and (ii) in addition to the Broker
Services set forth in the Agreement and the Rider.

 

1.                                       To perform the terms of any written or oral
agreement made with any party to the transaction;

 

2.                                       To exercise reasonable skill and care as
Broker, including, but not limited to:

 

(a)          Presenting all offers and counteroffers in a timely manner regardless
of whether the Premises or any portion thereof is subject to a contract for
sale or lease or letter of intent;

 

(b)         Advising the parties regarding the transaction and suggesting that such
parties obtain expert advice as to material matters about which Broker knows
but the specifics of which are beyond the expertise of Broker;

 

(c)          Accounting in a timely manner for all money and property received in
connection with Broker Services;

 

(d)         Keeping the parties fully informed regarding the transaction;

 

(e)          Assisting the parties in complying with the terms and conditions of any
contract including closing the transaction;

 

(f)            Disclosing to all prospective buyers or
Tenants any adverse material facts actually known by Broker including but not
limited to adverse material facts pertaining to the title, the physical
condition of the Premises, any defects in the Premises, and any environmental
hazards affecting the property required by law to be disclosed;

 

(g)         Disclosing to Owner all adverse material facts actually known by Broker
including but not limited to adverse material facts pertaining to the buyer’s
or Tenant’s financial ability to perform the terms of the transaction; and

 

(h)         Informing the parties that as seller and buyer or as landlord and
tenant they shall not be vicariously liable for any acts of Broker;

 

3.                                       To comply with all requirements of and any rules promulgated
pursuant to C.R.S. §12-61-807;

 

4.                                       To comply with any applicable federal, state,
or local laws, rules, regulations, or ordinances including fair housing and
civil rights statutes or regulations;

 

5.                                       Broker has no duty to conduct an independent
inspection of the Premises or any portion thereof for the benefit of the buyer
or Tenant and has no duty to independently verify the accuracy or completeness
of statements made by Owner or independent inspectors;

 

6.                                       Broker has no duty to conduct an independent
investigation of the buyer’s or Tenant’s financial condition or to verify the
accuracy or completeness of any statement made by the buyer or Tenant;

 

7.                                       Broker may do the following without breaching
any obligation or responsibility:

 

(a)                                  Show alternative properties not owned by
Owner to a prospective buyer or Tenant;

 

(b)                                 List competing properties for sale or lease;

 

(c)                                  Show properties in which the buyer or Tenant
is interested to other prospective buyers or Tenants; and

 

(d)                                 Serve as a single agent or transaction-broker
for the same or for different parties in other real estate transactions;

 

 

8.                                       There shall be no imputation of knowledge or
information between any party and Broker or among persons within an entity
engaged as a Transaction Broker;

 

9.                                       Broker may cooperate with other brokers but
shall not engage or create any subagents; and

 

10.                                 The following information shall not be disclosed
by Broker without the informed consent of all parties:

 

(a)          That a buyer or Tenant is willing to pay more than the purchase price
or lease rate offered for the Premises or any portion thereof;

 

(b)         That Owner is willing to accept less than the asking price or lease
rate for the Premises or any portion thereof;

 

(c)          What the motivating factors are for any party buying, selling, or
leasing the Premises or any portion thereof;

 

(d)         That a seller, buyer, landlord, or tenant will agree to financing terms
other than those offered;

 

(e)          Any facts or suspicions regarding circumstances which may
psychologically impact or stigmatize any real property pursuant to section 38-35.5-101,
C.R.S.; or

 

(f)            Any material information about the other
party unless disclosure is required by law or failure to disclose such
information would constitute fraud or dishonest dealing;

 

11.                                 Broker, when acting as a Transaction Broker,
shall not disclose any material information about a party without the prior
consent of the applicable party unless: (a) the disclosure pertains to
adverse material facts about a party’s financial ability to perform the terms
of the transaction, or (b) the disclosure pertains to Tenant’s intent to
occupy the Premises as a principal residence.

 

SEE C.R.S. § 12-61-807Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

Between

Mirant Corporation

and

James V. Iaco

 

THIS AGREEMENT is made as
of November 3, 2005 between Mirant Corporation (the “Company”),
Mirant Services, LLC (“Services”) and James V. Iaco (“Executive”).

 

In consideration of the
mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

1.  Employment.  The Company and Services shall employ
Executive, and Executive hereby accepts employment with the Company and
Services, upon the terms and conditions set forth in this Agreement, for the period
beginning on November 7, 2005 (the “Commencement Date”) and ending
as provided in Section 4 hereof (the “Employment Period”).  The Company shall make reasonable commercial
efforts to obtain all necessary Bankruptcy Court approvals of this Agreement
promptly following the execution hereof by Executive.

 

2.  Position and Duties.

 

(a)                                  During the Employment Period,
Executive shall serve as (i) Executive Vice President of the Company and (ii) effective
upon the appointment by Mirant’s Chief Executive Officer (which is expected to
occur on November 10, 2005 but shall occur in no event later than November 15,
2005), Chief Financial Officer. During the Employment Period, Executive shall
render such administrative, financial and other executive and managerial
services to the Company and its affiliates (the “Company Group”) as are
consistent with Executive’s position and the by-laws of the Company and as the Chief Executive Officer (“CEO”)
may from time to time reasonably direct.  Executive shall also serve for no additional
compensation or remuneration as an officer or director of such subsidiaries of
the Company as may from time to time be designated by the Board.

 

(b)                                 During the Employment Period,
Executive shall report to the Chief Executive Officer and shall devote his best
efforts and his full business time and attention (except for permitted vacation
periods and reasonable periods of illness or other incapacity) to the business
and affairs of the Company.  Executive
shall perform his duties, responsibilities and functions to the Company
hereunder to the best of his abilities in a diligent, trustworthy, professional
and efficient manner and shall comply with the Company’s policies and
procedures in all material respects.  In
performing his duties and exercising his authority under this Agreement,
Executive shall support and implement the business and strategic plans approved
from time to time by the Board and shall support and cooperate with the Company’s
efforts to operate profitably and in

 

 

conformity with the
business and strategic plans approved by the Board.  During the Employment Period, Executive shall
not serve as an officer or director of, or otherwise perform services for
compensation for, any other entity without the prior written consent of the
Board which shall not be
unreasonably withheld; provided, however, that the
Board hereby consents to Executive’s service on and after the Commencement Date
as a director of each of the corporations listed on Exhibit A.  Executive may serve as an officer or director
of or otherwise participate in purely educational, welfare, social, religious
and civic organizations so long as such activities do not materially
interfere with Executive’s regular performance of duties and responsibilities
hereunder.  Nothing contained herein
shall preclude Executive from (i) engaging in charitable and community
activities, (ii) participating in industry and trade organization
activities, (iii) managing his and his family’s personal investments and
affairs, and (iv) delivering lectures, fulfilling speaking engagements or
teaching at educational institutions, provided that such activities do not materially interfere with the
regular performance of his duties and responsibilities under this Agreement.

 

3.  Compensation and Benefits.

 

(a)                                  The Company shall pay Executive
an annual salary (the “Base Salary”) at the rate of $450,000.00 in
regular installments in accordance with the Company’s ordinary payroll
practices (in effect from time to time), but in any event no less frequently
than monthly.

 

(a)                                  Bonuses and Incentive
Compensation.

 

(i)                                     Annual Bonus.  For each fiscal year during the Employment
Period, Executive will be eligible to earn an annual bonus based on achievement
of performance criteria that are applicable to members of the Company’s
Management Counsel established by the Board as soon as administratively
practicable following the beginning of each such fiscal year (the “Annual
Bonus”).  The target amount (the “Target
Bonus”) of Executive’s Annual Bonus
shall equal 65% of Executive’s Base Salary (at the annual rate in effect at the
start of the fiscal year), with a maximum Annual Bonus in an amount equal to
130% of Executive’s Base Salary (at the annual rate in effect at the start of
the fiscal year).  For the Company’s
fiscal year that includes the Commencement Date, Executive shall receive an
Annual Bonus of not less than 65% of his Base Salary, prorated (based on number
of days worked) from the Commencement
Date to the end of such fiscal year.  The
Company shall pay the Annual Bonus for each fiscal year in a single cash lump
sum after the end of the Company’s fiscal year in accordance with procedures
established by the Board, but in no event later than two and a half months
following the end of such fiscal year.

 

(ii)                                  Emergence Equity Grant.  The Company shall grant Executive a
combination of restricted stock units (“Restricted
Stock Units”) that are to be settled in common stock of the Company (“Common
Stock”) and options to purchase Common Stock (“Stock Options”) with
an aggregate economic value of $3.6 million (such grant of Restricted
Stock Units and Stock Options are together
referred to as the “Executive LTIP”). 
The $3.6 million aggregate economic value of the Restricted Stock Units and Stock Options to be awarded
under the Executive LTIP shall be determined in the good

 

2

 

faith judgment of the Compensation Committee of the Board taking into
account the requirements set forth in (A) and (B) below.

 

(A)                              Ten
days following the Company’s emergence from bankruptcy protection (the “Emergence
Date”) under Chapter 11 of Title 11 of the United States Code, Executive
shall be awarded Restricted Stock Units and Stock Options with an aggregate value of
$1.8 million, with one-third of such value to consist of Restricted Stock Units.  The exact number of Restricted Stock Units
to be awarded ten days following the Emergence Date shall be determined solely
based on the average of the daily closing price of a share of Common Stock on
The New York Stock Exchange or, if the Common Stock is not traded on The New
York Stock Exchange, the average of the midpoint of the daily bid and ask price
of a share of Common Stock on the OTC Bulletin Board, from the Emergence Date
to the date of grant of such Restricted Stock Units, without any discount based on vesting
requirements or lack of transferability. 
The Stock Options granted ten days following the Emergence Date shall
have an exercise price per share equal to the closing price of a share of
Common Stock on The New York Stock Exchange or, if the Common Stock is not
traded on The New York Stock Exchange, the midpoint of the bid and ask price of
a share of Common Stock on the OTC Bulletin Board, on the date of grant of such
Stock Options.  Such Stock Options shall
have a ten-year term.  The exact number
of Stock Options granted ten days following the Emergence Date shall be
determined based upon a Black-Scholes or other valuation model, using
reasonable assumptions as determined in good faith by the Compensation
Committee of the Board.

 

(B)                                Forty
five days after the Emergence Date, Executive shall be awarded Restricted Stock
Units and Stock Options with an aggregate value of $1.8
million, with one-third of such value to consist of Restricted Stock Units.  The exact number of Restricted Stock Units
to be awarded 45 days after the Emergence Date shall be determined solely based
on the average of the daily closing price of a share of Common Stock on The New
York Stock Exchange or, if the Common Stock is not traded on The New York Stock
Exchange, the average of the midpoint of the daily bid and ask price of a share
of Common Stock on the OTC Bulletin Board, from the Emergence Date to the date
of grant of such Restricted Stock Units, without any discount based on vesting
requirements or lack of transferability. 
The Stock Options granted 45 days after the Emergence Date shall have an
exercise price equal to the closing price of a share of Common Stock on The New
York Stock Exchange or, if the Common Stock is not traded on The New York Stock
Exchange, the midpoint of the bid and ask price of a share of

 

3

 

Common Stock
on the OTC Bulletin Board, on the date of grant of such Stock Options.  Such Stock Options shall have a ten-year
term.  The exact number of Stock Options
granted 45 days after the Emergence Date shall be determined based upon a
Black-Scholes or other valuation model, using reasonable assumptions as
determined in good faith by the Compensation Committee of the Board.

 

The terms and conditions
of the Executive LTIP shall be governed by and subject to the award agreements
to be entered into between Executive and the Company, substantially in the
forms of Exhibits B and C respectively (the “LTIP Award Agreements”). 
The Restricted Stock Units and Options granted pursuant to
the Executive LTIP shall, subject to the treatment of the Executive LTIP upon
termination of Executive’s employment as provided in the LTIP Award Agreement,
vest over a period of three years, with 25% to vest six months after the
Emergence Date, 25% to vest one year after the Emergence Date, 25% to vest two
years after the Emergence Date and 25% to vest three years after the Emergence
Date.

 

(iii)                               Annual Equity Grant.  Beginning with fiscal year 2007 and for each
fiscal year thereafter during the Employment Period, Executive shall be
eligible to receive additional equity-based compensation under the long term
incentive plan of the Company in effect at the time of such award, the amount,
terms and conditions of such award to be set by the Board at the time of
grant.  Such awards shall otherwise be
governed by the terms and conditions set forth in the long term incentive plan
of the Company as may be in effect at the time of such award and the
corresponding award agreement and shall be made at such time as grants are made
to other senior executives of the Company.

 

(b)                                 During the Employment Period,
the Company shall reimburse Executive for all reasonable business expenses
incurred by him in the course of performing his duties and responsibilities
under this Agreement in accordance with the Company’s policies in effect from
time to time with respect to travel, entertainment and other business expenses for senior executives.

 

(c)                                  Executive shall also be entitled
to the following benefits during the Employment Period, unless otherwise
modified by the Board:

 

(i)                                     participation in the Company’s
retirement plans, health and welfare plans, disability insurance plans and
other benefit plans of the Company as in effect from time to time, under the
terms of such plans and to the same extent and under the same conditions such
participation and coverages are provided generally to other senior executives of the Company;

 

(ii)                                  reimbursement for the reasonable
cost of temporary living accommodations for Executive and his spouse in
Atlanta, Georgia for up to six months and relocation expenses
reimbursed in accordance with the Company’s then existing Relocation Policy for senior executives;

 

4

 

(iii)                               coverage for services rendered to the
Company, its subsidiaries and affiliates while Executive is a director or
officer of the Company, or of any of its subsidiaries or
affiliates,
under any director and officer liability insurance policy(ies) maintained by the Company from
time to time; and

 

(iv)                              four weeks of vacation per year.

 

4.  Termination.  The Employment Period shall end on the third
anniversary of the Commencement Date; provided, however, that the Employment
Period shall be automatically renewed for successive one-year terms thereafter on the same terms and
conditions set forth herein unless either party provides the other party with
notice that it has elected not to renew the Employment Period at least 90 days
prior to the end of the initial Employment Period or any subsequent extension
thereof.  Notwithstanding the foregoing, (i) the
Employment Period shall terminate immediately upon Executive’s resignation
(with or without Good Reason, as defined herein), death or Disability (as
defined herein) and (ii) the Employment Period may be terminated by the
Company at any time prior to such date for Cause (as defined herein) or without
Cause.  Except as otherwise provided
herein, any termination of the Employment Period by the Company shall be
effective as specified in a written notice from the Company to Executive, but
in no event more than 90 days from the date of such notice.  The termination of the Employment Period
shall not affect the respective rights and obligations of the parties which,
pursuant to the terms of this Agreement, apply following the date of Executive’s
termination of employment with the Company.

 

5.  Severance.

 

(a)                                  Termination Without Cause,
Non-Renewal or for Good Reason.  In the event of
Executive’s termination of employment with the Company (1) by the Company
without Cause (as defined herein), (2) by reason of the failure
of the Company to offer to renew the Agreement on terms that are based on
competitive practices for companies of comparable size and standing in the same
industry, or (3) by Executive for Good Reason (as defined herein), subject to
execution of a Release substantially in the form attached as Exhibit D,
Executive shall be entitled to the benefits set forth below in this Section 5(a).

 

(i)                                     The Company shall pay Executive
an amount equal to 1.5 times Executive’s Base Salary plus 1.5 times Executive’s
Target Bonus (as in effect on the date of Executive’s termination).  The severance amount described in the
previous sentence shall be paid over a period of two years from the date of
termination in accordance with the payroll practices of the Company (in effect
from time to time); provided, however, that, in the event that
Executive is considered a “Specified Employee” as defined in Section 409A
of the Internal Revenue Code of 1986, as amended (the “JOBS Act”), and payments under this Section 5(a) are considered “deferred
compensation” under the JOBS Act, the first payment shall be delayed for six
months, in which event Executive shall receive a lump sum payment equal to one times his Base Salary six months after the
date his employment terminates (plus interest on such payment of one times Base
Salary at a floating rate equal to LIBOR, from the date of termination of
Executive’s employment to the date that is six months after termination of
Executive’s employment), and the remainder of such severance amount shall be
paid in equal installments over a

 

5

 

period of 18 months thereafter in accordance with the ordinary
payroll practices of the company (in effect from time to time).

 

(ii)                                  The Executive LTIP shall be governed
by the terms of the applicable LTIP Award Agreements.

 

(iii)                               The Company shall pay Executive
the amounts described in Section 5(d) within 14 days of the date of
termination.

 

(iv)                              During the period of 24 months
following Executive’s termination of employment in accordance with Section 5(a),
the Company shall provide to Executive continued coverage under the retirement,
life insurance, long-term disability, medical, dental and other group health
benefits and plans in effect for senior executives of the Company, as in effect
on the date of Executive’s termination of employment (or substantially
comparable coverage) for Executive and, where applicable, Executive’s spouse,
dependents and beneficiaries, at the same contribution or premium rate as may
be charged from time to time to senior executives of the Company generally, as
if Executive had continued in employment during such period.  As an alternative, the Company may elect to
pay Executive cash in lieu of such contributions or coverage in an amount equal
to Executive’s after-tax cost of receiving such contributions or continuing
such coverage, where such contributions or coverage may not be continued (or
where such continuation would adversely affect the tax status of the plan
pursuant to which the contribution or coverage is provided).  The COBRA health care continuation coverage
period under Section 4980B of the Internal Revenue Code of 1986, as
amended, (the “Code”), or any replacement or
successor provision of United States tax law, shall commence immediately after
the 24 month period.

 

(v)                                 The Company shall provide a
release substantially in the form attached hereto as Exhibit G.  If the Company does not provide the release
required pursuant to this subsection (v), the Release by the Executive
shall be null, void and without effect, and Executive shall still receive all
of the payments and benefits described in subsections (i) through (iv) above.

 

(b)                                 Termination for Cause or
Voluntary Resignation.  In the event that Executive’s employment with
the Company is terminated (i) by the Board for Cause or (ii) by
Executive’s resignation from the Company for any reason other than Good Reason
or Disability (as defined herein), subject to applicable law, the Company
agrees to the following:

 

(i)                                     The Executive LTIP shall be
governed by the terms of the applicable LTIP Award Agreements.

 

(ii)                                  The Company shall pay Executive
the amounts described in Section 5(d) within 14 days of the date of
termination.

 

For purposes of this
Agreement, Executive’s retirement shall be considered Executive’s resignation
from the Company without Good Reason.

 

6

 

(c)                                  Death or Disability.  In the event that Executive’s employment with
the Company is terminated as a result of Executive’s death or Disability, the
Company agrees to the following:

 

(i)                                     The Company shall pay Executive
(or his estate or legal representative, if applicable) in a lump sum payment an
amount equal to his target Annual Bonus for the year of termination prorated
for the number of days during such year that Executive was employed by the
Company; provided, however, that, in the event that Executive is
considered a “Specified Employee” as defined in the JOBS Act and payments under this Section 5(c) are considered “deferred
compensation” under the JOBS Act, such payment shall be delayed for six months,
and Executive shall receive interest on such payment at a floating rate equal
to LIBOR, from the date of termination of Executive’s employment to the date
that is six months after termination of Executive’s employment.

 

(ii)                                  The Executive LTIP shall be
governed by the terms of the applicable LTIP Award Agreements.

 

(iii)                               The Company shall pay Executive
the amounts described in Section 5(d) within 14 days of the date of
termination.

 

(d)                                 In the case of any termination
of Executive’s employment with the Company, Executive or his estate or legal
representative shall be entitled to receive, to the extent permitted by
applicable law, from the Company (i) Executive’s Base Salary through the
date of termination to the extent not previously paid, (ii) to the extent
not previously paid, the amount of any bonus, incentive compensation, and other
compensation earned or accrued by Executive as of the date of termination under
any compensation and benefit plans, programs or arrangements maintained in
force by the Company (for this purpose, Executive’s Annual Bonus, if any, for
any fiscal year of the Company ended prior to the year of termination that is then
unpaid, and in the case of a termination under Section 5(a) or (c) a
pro-rata portion of the Target Bonus
for the fiscal year in which the date of termination occurs based on the number
of days in that fiscal year during which Executive was employed, shall be
deemed to be earned),
(iii) any vacation pay, expense reimbursements and other cash entitlements
accrued by Executive, in accordance with Company policy for senior executives, as of the date of termination
to the extent not previously paid, (iv) any Restricted Stock Units, Stock Options and other equity
awards outstanding under any Company long term incentive plans or arrangements
(other than the Executive LTIP), in accordance with the terms of the plans or
arrangements under which such awards were created or maintained, and (v) all
benefits accrued by Executive under all benefit plans and qualified and
nonqualified retirement, pension, 401(k) and similar plans and arrangements of
the Company, in such manner and at such times as are provided under the terms
of such plans and arrangements.

 

(e)                                  Termination Without Cause, Non-Renewal or for Good Reason Following a
Change of Control.  In the event of Executive’s termination of
employment with the Company (1) by the Company without Cause, (2) as a result of the
failure of the Company to offer to renew the Agreement on terms that are
consistent with competitive practices for companies of comparable size and
standing in the same industry, or (3) by Executive for Good Reason, in
any
case, during the period beginning six months before and ending two years following a Change of

 

7

 

Control (as defined
herein) of the Company, subject to execution of a Release substantially in the
form attached as Exhibit D, Executive shall be entitled to the benefits set
forth below in this Section 5(e).

 

(i)                                     The Company shall pay Executive
the payments set forth in Section 5(a)(i), except the applicable multiplier shall be 3; provided, however, that in determining the amount
of payment due under Section 5(a)(i), Executive’s actual Annual Bonus for
the year preceding the Change of Control shall be used, if higher than his
Target Bonus; and provided, further, that payment shall be made in
a lump sum on the later of the date of the Change of Control or
10 business days after Executive’s termination of employment; provided, however, that, in the event Executive
is considered a “Specified Employee” as defined in the JOBS Act, and payments
under this Section 5(e) are considered “deferred compensation” under
the JOBS Act, the payment shall be delayed for six months from the date of
Executive’s termination of employment and Executive shall receive interest at a
floating rate equal to LIBOR from the date of termination of Executive’s
employment to the date that is six months after termination of Executive’s
employment.

 

(ii)                                  The Company shall provide the
benefits set forth in Section 5(a)(iv) except the applicable period
shall be 36 months.

 

(iii)                               The Executive LTIP shall fully
vest, to the extent not already vested, and otherwise be governed by the terms
of the applicable LTIP Award Agreements.

 

(iv)                              The Company shall pay Executive
the amounts described in Section 5(d).

 

(v)                                 The Company shall provide a
release substantially in the form attached hereto as Exhibit G.  If the Company does not provide the release
required pursuant to this subsection (v), the Release by the Executive
shall be null, void and without effect, and Executive shall still receive all
of the payments and benefits described in subsections (i) through (iv) above.

 

8

 

(f)                                    Excess Parachute Payments.

 

(i)                                     In the event any payment granted
to Executive pursuant to the terms of this Agreement or otherwise (a “Payment”)
is determined to be subject to any excise tax (“Excise Tax”) imposed by Section 4999
of the Code (or any successor to such Section), the Company shall pay to
Executive, prior to the time any Excise Tax is payable with respect to such
Payment (through withholding or otherwise), an additional amount (a “Gross-Up
Payment”) which, after the imposition of all income, employment, excise and
other taxes, penalties and interest thereon, is equal to the sum of (A) the
Excise Tax on such Payment plus (B) any penalty and interest assessments
associated with such Excise Tax; provided, however, that the amount of the
Gross Up Payment shall not exceed $2 million.

 

(ii)                                  The determinations to be made
with respect to this Section 5(f) shall be made by a certified public
accounting firm designated by the Company and reasonably acceptable to
Executive and Executive may rely on such determination in making payments to
the Internal Revenue Service.

 

(g)                                 No Other Payments.  Except as provided in Sections 5(a),
(b), (c), (d), (e) and (f) above, all of Executive’s rights to
salary, bonuses, employee benefits and other compensation hereunder which would
have accrued or become payable after the termination or expiration of the
Employment Period shall cease upon such termination or expiration, other than
those expressly required under applicable law (such as COBRA).

 

(h)                                 No Mitigation, No Offset.  In the event of Executive’s termination of
employment for whatever reason, Executive shall be under no obligation to seek
other employment, and there shall be no offset against amounts due him under
this Agreement or otherwise on account of any remuneration attributable to any
subsequent employment or claims asserted by the Company or any affiliate,
provided that this provision shall not apply with respect to any amounts that
Executive owes to the Company or any member of the Company Group on account of
any loan, advance or other payment, in respect of any of which Executive is
obligated to make repayment to the Company or any member of the Company Group.

 

(i)                                     Definitions.  For purposes of this Agreement, the following
terms shall have the following meanings:

 

“Cause”
shall mean one or more of the following:

 

(A)                              the
conviction of, or an agreement to a plea of nolo contendere
to, a crime involving moral turpitude or any felony;

 

(B)                                Executive’s
willful refusal substantially to perform duties as reasonably directed by the
CEO under this or any other agreement;

 

(C)                                in
carrying out his duties, Executive engages in conduct that constitutes fraud,
willful neglect or willful misconduct which, in either case, would result in
demonstrable harm to the business, operations, prospects or reputation of the
Company;

 

9

 

(D)                               a
material violation of the requirements of the
Sarbanes-Oxley Act of 2002 (“SOX”) or other federal or state securities
law, rule or regulation; or

 

(E)                                 any
other material breach of this Agreement.

 

For purpose of this
Agreement, the Company is not entitled to assert that Executive’s termination
is for Cause unless the Company gives Executive written notice describing the
facts which are the basis for such termination and such grounds for termination
(if susceptible to correction) are not corrected by Executive within 30 days
of Executive’s receipt of such notice to the reasonable, good faith satisfaction
of the CEO.

 

“Change
of Control” shall mean the first to occur of any of the following events:

 

(A)                              any
“person” (as that term is used in Sections 13 and 14(d)(2) of the
Securities Exchange Act of 1934 (“Exchange Act”)) becomes the beneficial
owner (as that term is used in Section 13(d) of the Exchange Act),
directly or indirectly, of fifty
percent (50%) or more of the Company’s capital stock entitled to vote in the
election of directors;

 

(B)                                persons
who on the day following the Emergence Date constitute the Board (the “Emergence
Directors”) cease for any reason, including, without limitation, as a
result of a tender offer, proxy contest, merger or similar transaction, to
constitute at least a majority thereof, provided, however, that any person who
becomes a director of the Company subsequent to the Emergence Date shall be
considered an Emergence Director if such person’s election or nomination for
election was approved by a vote of at least two-thirds (2/3) of the Emergence
Directors; but provided  further that any such person whose
initial assumption of office is in connection with an actual or threatened
election contest relating to the election of members of the Board or other
actual or threatened solicitation of proxies or consents by or on behalf of a
person other than the Board, including by reason of agreement intended to avoid
or settle any such actual or threatened contest or solicitation, shall not be
considered an Emergence Director;

 

(C)                                consummation
of a reorganization, merger, consolidation, sale or other disposition of all or
substantially all of the assets of the Company (a “Business Combination”),
in each case, unless, following such Business Combination, all or substantially
all of the individuals and entities who were the beneficial owners of
outstanding voting securities of the Company immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of the
combined voting power of the

 

10

 

then outstanding
voting securities entitled to vote generally in the election of directors, as
the case may be, of the company resulting from such Business Combination
(including, without limitation, a company which, as a result of such
transaction, owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such Business
Combination, of the outstanding voting securities of the Company; and

 

(D)                               the
shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company.

 

Notwithstanding the
foregoing, in no event shall the confirmation of the plan of reorganization
confirmed under 11 U.S.C. § 1129 (the “Plan of Reorganization”),
the implementation of the transactions contemplated by the Plan of
Reorganization on or after the Emergence Date or the effectuation of the
corporate governance provisions set forth therein, including the implementation
of the Board of Directors as specified therein, be considered a Change of
Control.

 

“Disability”
shall mean Executive’s (i) being unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months or (ii) by reason of
any medically determinable physical or mental impairment which can be expected
to result in death or can be expected to last for a continuous period of not
less than 12 months, receiving income replacement benefits for a period of not
less than three months under an accident and health plan covering employees of
the Company.

 

“Good
Reason” shall mean Executive’s resignation from employment with the Company
prior to the end of the Employment Period as a result of one or more of the
following reasons:

 

(A)                              the
Company reduces the amount of Executive’s then current Base Salary or the
target for his Annual Bonus (it being understood that Executive shall not have
a basis to resign for Good Reason if no bonus is paid, or the amount of the
bonus is reduced as a result of the failure of Executive or the Company to
achieve applicable performance targets for such bonus);

 

(B)                                a
material diminution in Executive’s title, authority, duties or responsibilities
or the assignment of duties to Executive which are materially inconsistent with
his position; provided, however, that, following a Change of
Control, any diminution of Executive’s title, duties or responsibilities shall
constitute Good Reason;

 

11

 

(C)                                the
failure of the Company to obtain in writing the obligation to perform this
Agreement by any successor to the Company or a purchaser of all or
substantially all of the assets of the Company within 15 days after a merger,
consolidation, sale or similar transaction;

 

(D)                               the
failure of the Company to grant Executive the Executive LTIP within 60 days
after the Effective Date; or

 

(E)                                 following a Change in Control, the requirement that Executive move his
principal place of business by more than 50 miles from that previously the case
without his consent.

 

Notwithstanding the
foregoing, Executive agrees that he shall not be entitled to terminate his
employment for Good Reason in the event he is subject to any unintended or
adverse tax consequences under the JOBS Act, the Company amends this Agreement
or the terms of any employee benefit plan, program arrangement or agreement to
avoid such adverse tax consequences or he is required to forfeit incentive or
other compensation pursuant to Section 304 of SOX.  For purposes of this Agreement, Executive is
not entitled to assert that his termination is for Good Reason unless Executive
gives the CEO written notice describing the event or events which are the basis
for such termination within ninety (90) days after the event or events occur
and such grounds for termination (if susceptible to correction) are not
corrected by the Company within 30 days of the Company’s receipt of such notice to
the reasonable, good faith satisfaction of Executive.

 

6.  Indemnification.

 

(a)                                  The Company agrees that (i) if
Executive is made a party, or is threatened to be made a party, to any
threatened or actual action, suit or proceeding, whether civil, criminal,
administrative, investigative, appellate or other (each, a “Proceeding”)
by reason of the fact that he is or was a director, officer, employee, agent,
manager, or representative of the Company or is or was serving at the request
of the Company as a director, officer, member, employee, agent, manager, or
representative of any member of the Company Group or (ii) if any claim,
demand, request, investigation, dispute, controversy, threat, discovery request
or request for testimony or information (each, a “Claim”) is made, or
threatened to be made, that arises out of or relates to Executive’s service in
any of the foregoing capacities, then Executive shall be indemnified and held
harmless by the Company to the fullest extent legally permitted or authorized
by the Company’s certificate of incorporation, by-laws, Board resolutions or,
if greater, by applicable law,
against any and all costs, expenses, liabilities and losses (including, without
limitation, attorney’s fees, judgments, interest, expenses of investigation,
penalties, fines, ERISA excise taxes or penalties and amounts paid or to be
paid in settlement) incurred or suffered by Executive in connection therewith,
and such indemnification shall continue as to Executive even if he has ceased
to be a director, member, employee, agent, manager, or representative of the
Company or any member of the Company Group and shall inure to the benefit of
Executive’s heirs, executors and administrators.  To the extent permitted by applicable law,
the Company shall advance to Executive all costs and expenses incurred by him
in connection with any such Proceeding or Claim within 15 days after
receiving written notice requesting such an advance.  Such notice

 

12

 

shall include, to the extent required by
applicable law, an undertaking by Executive to repay the amount advanced if he
is ultimately determined not to be entitled to indemnification against such
costs and expenses.

 

(b)                                 Neither the failure of the
Company (including the Board, independent legal counsel or stockholders) to
have made a determination in connection with any request for indemnification or
advancement under Section 6(a) that Executive has satisfied any
applicable standard of conduct nor a determination by the Company (including
the Board, independent legal counsel or stockholders) that Executive has not
met any applicable standard of conduct shall create a presumption that
Executive has or has not met an applicable standard of conduct.

 

(c)                                  The Company agrees to use
reasonable commercial efforts to maintain director’s and officer’s liability
insurance covering the Executive for services rendered to the Company, its
subsidiaries and affiliates while Executive is a director or officer of the
Company or any of its subsidiaries or affiliates.

 

7.  Confidential Information.  Executive agrees to enter into the
Confidentiality Agreement attached as Exhibit E simultaneously with
the execution of this Agreement.

 

8.  Intellectual Property, Inventions and
Patents.  Executive agrees to enter
into the Intellectual Property Agreement attached as Exhibit F
simultaneously with the execution of this Agreement.

 

9.  Non-Compete,
Non-Solicitation.

 

(a)                                  In further consideration of the
compensation to be paid to Executive hereunder, Executive acknowledges that
during the course of his employment with the Company, he shall become familiar
with the Company Group’s trade secrets and with other confidential information
concerning the Company Group and that his services shall be of special, unique
and extraordinary value to the Company Group, and, therefore, Executive agrees
that, during the Employment Period and for one (1) year thereafter (the “Noncompete
Period”), he shall not directly or indirectly own any interest in, manage,
control, be employed in an executive, managerial or administrative capacity by,
or otherwise render executive, managerial or administrative services to, any
company engaged in the business of owning and operating power generation facilities
or energy trading and marketing operations which competes with the businesses
of the Company on the date of the termination or expiration of the Employment
Period, within any geographical area in which the Company engages in such
businesses.  Nothing herein shall
prohibit Executive from being a passive owner of not more than 2% of the
outstanding stock of any class of a corporation which is publicly traded, so
long as Executive has no active participation in the business of such
corporation.

 

(b)                                 During the Noncompete Period,
Executive shall not directly or indirectly through another person or entity (i) induce
or attempt to induce any employee of the Company to leave the employ of the
Company, or in any way interfere with the relationship between the Company and
any employee thereof; (ii) hire any person who was a managerial or higher level employee of the Company during
the last six months of the Employment Period; or (iii) induce or attempt
to induce any customer, supplier, licensee, licensor, franchisee or other
business

 

13

 

relation of the Company to cease doing
business with the Company, or in any way interfere with the relationship
between any such customer, supplier, licensee or business relation of the
Company (including, without limitation, making any negative or disparaging
statements or communications regarding the Company.  The Company covenants that it will not, and
it will advise members of senior management of the Company and the Board not
to, make any negative or disparaging statements or communications regarding
Executive.

 

(c)                                  If, at the time of enforcement
of this Section 9, a court shall hold that the duration, scope or area
restrictions stated herein are unreasonable under circumstances then existing,
the parties agree that the maximum duration, scope or area reasonable under
such circumstances shall be substituted for the stated duration, scope or area
and that the court shall be allowed to revise the restrictions contained herein
to cover the maximum period, scope and area permitted by law.  Executive acknowledges that the restrictions
contained in this Section 9 are reasonable and that he has reviewed the
provisions of this Agreement with his legal counsel.

 

(d)                                 Executive acknowledges that in
the event of the breach or a threatened breach by Executive of any of the
provisions of this Section 9, the Company would suffer irreparable harm,
and, in addition and supplementary to other rights and remedies existing in its
favor, the Company shall be entitled to specific performance and/or injunctive
or other equitable relief from a court of competent jurisdiction in order to
enforce or prevent any violations of the provisions hereof (without posting a
bond or other security).  In addition, in
the event of a breach or violation by Executive of Section 9(a), the
Noncompete Period shall be automatically extended by the amount of time between
the initial occurrence of the breach or violation and when such breach or
violation has been duly cured.

 

10.  Executive’s Representations.  Executive hereby represents and warrants to
the Company that (i) the execution, delivery and performance of this
Agreement by Executive do not and shall not conflict with, breach, violate or
cause a default under, any contract, agreement, instrument, order, judgment or
decree to which Executive is a party or by which he is bound which has not been
waived; (ii) Executive is not a party to or bound by any employment
agreement, noncompete agreement or confidentiality agreement with any other
person or entity which has not been waived; and (iii) on the Commencement
Date, this Agreement shall be the valid and binding obligation of Executive,
enforceable in accordance with its terms. 
Executive hereby acknowledges and represents that he has consulted with
independent legal counsel regarding his rights and obligations under this
Agreement and that he fully understands the terms and conditions contained
herein.

 

11.  Notices.  All notices or communications hereunder shall
be in writing, addressed as follows:

 

To the Company:

 

Mirant Corporation

Chief Executive Officer

1155 Perimeter Center West

Atlanta, GA 30338-5416

 

14

 

with a copy to:                                                                 Legal
Department

Mirant Services, LLC

1155 Perimeter Center West

Atlanta, GA 30338-5416

Fax: 678-579-5589

To Executive:

 

To the address on
file in the permanent records of the Company at the time of the notice.

 

All such notices shall be
conclusively deemed to be received and shall be effective (i) if sent by
hand delivery, upon receipt or (ii) if sent by electronic mail or
facsimile, upon confirmation of receipt by the sender of such transmission.

 

12.  Severability.  In the event any provision or part of this
Agreement is found to be invalid or unenforceable, only that particular
provision or part so found, and not the entire Agreement, will be inoperative.

 

13.  Complete Agreement.  This Agreement, the LTIP Award Agreements and
those documents expressly referred to herein embody the complete agreement and
understanding among the parties and supersede and preempt any prior
understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way.

 

14.  No Strict Construction.  The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction shall be applied against any
party.

 

15.  Counterparts.  This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

 

16.  Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the beneficiaries, heirs and representatives of
Executive and the successors and assigns of the Company.  The Company shall require any successor
(whether direct or indirect, by purchase, merger, reorganization,
consolidation, acquisition of property or stock, liquidation, or otherwise) to
all or a majority of its assets, by agreement in form and substance
satisfactory to Executive, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform this Agreement if no such succession had taken place.  Executive may not assign his rights (except
by will or the laws of descent and distribution) or delegate his duties or
obligations hereunder.  Except as
provided by this Section 16, this Agreement is not assignable by any party
and no payment to be made hereunder shall be subject to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or other charge.

 

15

 

17.  Choice of Law.  All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement and
the exhibits and schedules hereto shall be governed by, and construed in
accordance with, the laws of the State of Georgia.

 

18.  Amendment and Waiver.  The provisions of this Agreement may be
amended, modified or waived only with the prior written consent of the Company
and Executive, and no course of conduct or course of dealing or failure or
delay by any party hereto in enforcing or exercising any of the provisions of
this Agreement (including, without limitation, the Company’s right to terminate
the Employment Period for Cause) shall affect the validity, binding effect or
enforceability of this Agreement or be deemed to be an implied waiver of any
provision of this Agreement.

 

19.  JOBS Act Compliance.  If any provision of this Agreement would
result in unintended or adverse tax consequences to Executive or the Company or
would, in the judgment of the Board, contravene the final regulations
anticipated to be promulgated under the JOBS Act or other Department of
Treasury guidance, the Company may reform this Agreement or any provisions
hereof to maintain to the maximum extent practicable the original purpose of
the provision without violating the provisions of the JOBS Act.

 

20.  Insurance.  The Company may, at its discretion, apply for
and procure in its own name and for its own benefit life and/or disability
insurance on Executive in any amount or amounts considered advisable.  Executive agrees to cooperate in any medical
or other examination, supply any information and execute and deliver any
applications or other instruments in writing as may be reasonably necessary to
obtain and constitute such insurance. 
Executive hereby represents that he has no reason to believe that his
life is not insurable at rates now prevailing for healthy men of his age.

 

21.  Withholding.  Any payments made or benefits provided to
Executive under this Agreement shall be reduced by any applicable withholding
taxes or other amounts required to be withheld by law or contract.

 

22.  Arbitration.  Any dispute or controversy arising under or
in connection with this Agreement or otherwise in connection with the Executive’s
employment by the Company that cannot be mutually resolved by the parties to
this Agreement and their respective advisors and representatives shall be
settled exclusively by arbitration in Atlanta, Georgia in accordance with the rules of
the American Arbitration Association before one arbitrator of exemplary qualifications
and stature, who shall be selected jointly by an individual to be designated by
the Company and an individual to be selected by Executive, or if such two
individuals cannot agree on the selection of the arbitrator, who shall be
selected by the American Arbitration Association. 
The
Company shall reimburse Executive’s reasonable legal fees if he prevails on a
material issue in an arbitration.

 

23.  Corporate Opportunity.  During the Employment Period, Executive shall
submit to the Board all business, commercial and investment opportunities or
offers presented to Executive that relate to the business of power companies (“Corporate
Opportunities”), if Executive wishes to accept or pursue, directly or
indirectly, such Corporate Opportunities on

 

16

 

Executive’s own
behalf.  This Section 23 shall not
apply to purchases of publicly traded stock by Executive.

 

24.  Executive’s Cooperation.  During the Employment Period and thereafter,
Executive shall cooperate with the Company and its affiliates, upon the Company’s
reasonable request, with respect to any internal investigation or
administrative, regulatory or judicial proceeding involving matters within the
scope of Executive’s duties and responsibilities to the Company Group during
the Employment Period (including, without limitation, Executive being available
to the Company upon reasonable notice for interviews and factual
investigations, appearing at the Company’s reasonable request to give testimony
without requiring service of a subpoena or other legal process, and turning
over to the Company all relevant Company documents which are or may come into
Executive’s possession during the Employment Period); provided, however,
that any such request by the Company shall not be unduly burdensome or
interfere with Executive’s personal schedule or ability to engage in
gainful employment.  In the event the
Company requires Executive’s cooperation in accordance with this Section 24,
the Company shall reimburse Executive for reasonable out-of-pocket expenses
(including travel, lodging and meals) incurred by Executive in connection with
such cooperation, subject to reasonable documentation.

 

17

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the date first written above.

 

	
   

  	
  MIRANT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vance N. Booker

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:   Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
  MIRANT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vance N. Booker

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ James V. Iaco

  	
   

  
	
   

  	
  James
  V. Iaco

  
							

 

18

 

Exhibit A

 

LIST OF APPROVED
DIRECTORSHIPS

 

None

 

A-1

 

Exhibit B

 

MIRANT CORPORATION

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

This Restricted Stock Unit Award (this “Award”) is made as of
[INSERT DATE THAT IS [10] [45] DAYS AFTER EMERGENCE DATE], by MIRANT
CORPORATION, a                       corporation
(the “Company”) to James V. Iaco (“Executive”).

 

W I  T  N  E  S
S  E  T  H:

 

WHEREAS, the Company entered into an employment agreement with
Executive, dated as of [                                 ,
2005] (the “Agreement”) providing for the grant to Executive of
restricted stock units (“Restricted Stock Units”) upon the Company’s
emergence from bankruptcy protection; and

 

WHEREAS, pursuant to the terms of the Agreement the Compensation
Committee of the Board of Directors of the Company (the “Board”) has
granted to Executive an award of Restricted Stock Units to promote Executive’s
long-term interests in the success of the Company;

 

NOW THEREFORE, the Company awards Restricted Stock Units to Executive
pursuant to the following terms and conditions:

 

1.                                       Restricted Stock Unit Award.  The Company hereby
grants to Executive an award of [______] Restricted Stock Units that are to be
settled in common stock of the Company (“Common Stock”).  The Restricted Stock Units shall be
transferable only in accordance with the provisions of Section 8 of this
Award and subject to the restrictions and other conditions set forth
herein.  The shares to be delivered to
Executive in settlement of the Restricted Stock Units shall be issued under the
Company’s then existing omnibus incentive plan and, if the Common Stock is then
traded on a national securities exchange or inter-dealer quotation system,
including without limitation, NASDAQ, or if the Company is subject to the
reporting requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934, as amended, or any successor provision
thereto, the Company shall take all action necessary to keep in effect a
registration statement under the Securities Act of 1933, as amended, or any
successor provision thereto (the “1933 Act”) enabling Executive to resell
Common Stock without restriction; provided, however, that the Company need not
take such action if, at the time of distribution of Common Stock to Executive,
such shares do not constitute “restricted securities” as defined in Rule 144
under the 1933 Act and Executive is not an “affiliate” of the Company under Rule 405
of the 1933 Act.  Capitalized terms used,
but not otherwise defined, shall have the meaning set forth in the Agreement.

 

2.                                       Restrictions.  Except as provided in Section 3 below,
the Restricted Stock Units shall vest and become transferable as follows:

 

a.               twenty-five percent
(25%) of the Restricted Stock Units shall vest [insert date that is six months
after the Company’s emergence from bankruptcy protection];

 

B-1

 

b.              twenty-five percent
(25%) of the Restricted Stock Units shall vest 
[insert date that is one year after the Company’s emergence from
bankruptcy protection];

 

c.               twenty-five percent
(25%) of the Restricted Stock Units shall vest [insert date that is two years
after the Company’s emergence from bankruptcy protection]; and

 

d.              twenty-five percent
(25%) of the Restricted Stock Units shall vest 
[insert date that is three years after the Company’s emergence from
bankruptcy protection].

 

3.                                      Change
in Employment Status.

 

a.                                       Termination
Without Cause, Non-Renewal, for Good Reason, Death or Disability.  In the event of Executive’s termination of
employment with the Company (regardless of whether such termination is in
connection with a Change in Control (as defined in the Agreement)) (i) by
the Company without Cause (as defined in the Agreement), (ii) by reason of
the failure of the Company to offer to renew the Agreement (as provided in the
Agreement), (iii) by Executive for Good Reason (as defined in the
Agreement) or (iv) as a result of Executive’s death or Disability (as
defined in the Agreement), all Restricted Stock Units that have not already
vested, as of the date of such termination, shall vest immediately and become
nonforfeitable.

 

b.                                      Termination
for Cause, Voluntary Resignation Without Good Reason.  In the event of Executive’s termination of
employment with the Company (i) by the Company for Cause or (ii) by
reason of Executive’s resignation from the Company for any reason other than
Good Reason, all Restricted Stock Units that have not already vested as of the
date of such termination shall be immediately forfeited by Executive.

 

4.                                       Book Entry Account.  Within a reasonable time after the date of
this Award, the Company shall instruct its transfer agent to establish a book entry
account representing the Restricted Stock Units in Executive’s name effective
as of the grant date, provided that the Company shall retain control of such
account until the Restricted Stock Units have become vested in accordance with
this Award.

 

5.                                       Distribution of Shares.  Consistent with the provisions of Section 3
of this Award, on the day following Executive’s termination of employment with
the Company or immediately prior to the occurrence of a Change of Control,
Executive shall receive one share of the Company’s common stock, as provided in
Section 1 above in satisfaction of each Restricted Stock Unit credited to
his account under Section 4 above and vested either theretofore or by
reason of the event resulting in such termination.

 

6.                                       Stockholder Rights.  Executive shall not have any of the rights of
a stockholder with respect to the Restricted Stock Units, including the right
to vote the Common Stock that will be issued upon vesting of the Restricted
Stock Units, other than the right to receive dividends or other distributions
paid or made available with respect to Common Stock of the Company when
otherwise paid to shareholders; provided, however, until such Restricted Stock
Units are vested, any dividends shall be credited to Executive’s account under Section 4
and paid in a lump sum when such Restricted Stock Units to which the dividends
are attributable vest.

 

B-2

 

7. 
Withholding. 
Executive shall pay all applicable federal, state and local income and
employment taxes (including taxes of any foreign jurisdiction), which the
Company is required to withhold at any time with respect to the Restricted
Stock Units.  Such payment shall be made
in full, at Executive’s election, in cash or check, by withholding from
Executive’s next normal payroll check, or by the tender of shares of Common
Stock (including shares then vesting under this Award).  Shares tendered as payment of required
withholding shall be valued at the closing price per share of Common Stock on
the date such withholding obligation arises.

 

8. 
Transferability. 
Except as otherwise provided in this Section 8, the Restricted
Stock Units shall not be sold, pledged, assigned, hypothecated, transferred or
disposed of in any manner, whether by the operation of law or otherwise.  Executive may transfer the Restricted Stock
Units, in whole or in part, to a spouse or lineal descendant (a “Family
Member”), a trust for the exclusive benefit of Executive and/or Family
Members, a partnership or other entity in which all the beneficial owners are
Executive and/or Family Members, or any other entity affiliated with Executive
that may be approved by the Compensation Committee (a “Permitted Transferee”).  Subsequent transfers of the Restricted Stock
Units shall be prohibited except in accordance with this Section 8.  All terms and conditions of the Restricted
Stock Units, including provisions relating to the termination of Executive’s
employment with the Company, shall continue to apply following a transfer made
in accordance with this Section 8. 
Any attempted transfer of the Restricted Stock Units prohibited by this Section 8
shall be null and void.

 

9.  Adjustments.  In the event that the outstanding shares
of Common Stock are subject to a stock split or changed into or exchanged for a
different number or kind of shares or other securities of the Company or other
corporation by reason of a merger, consolidation, reorganization,
recapitalization, reclassification, combination of shares or a dividend payable
in capital stock, or a similar corporate structural change, then the rights of
the Executive shall be appropriately adjusted as to the number of shares of
Common Stock subject to the Restricted Stock Unit Award.  The granting of the Restricted Stock Units
pursuant to this Award shall not affect in any way the right or power of the
Company to make adjustments, reorganizations, reclassifications, or changes of
its capital or business structure or to merge, consolidate, dissolve,
liquidate, or sell or transfer all or any part of its business or assets.

 

10. Change in Control.  Subject to the provisions of Section 3
of this Award, the Compensation Committee, in its sole discretion, may at any
time prior to, coincident with or after the time of a Change in Control:

 

(i)                                     provide
for the acceleration of any vesting of the Restricted Stock Units upon a Change
in Control; or

 

(ii)                                  provide
that such Restricted Stock Units shall vest in accordance with the provisions
of this Agreement as though no Change in Control had occurred, except that, as
appropriate, the shares of Common Stock represented by the Restricted Stock
Units shall be treated in the same manner as other shares of Common Stock in
any transaction constituting a Change in Control; or

 

B-3

 

(iii)                               cause
new rights to be substituted for the Restricted Stock Units by the surviving
corporation in such Change in Control.

 

Any such actions
shall be authorized by the Compensation Committee, whose determination as to what
actions shall be taken and the extent thereof, shall be final.

 

11. Agreement Provisions.  In addition to the terms and conditions set
forth herein, this Award is subject to and governed by the terms and conditions
set forth in the Agreement, which is incorporated herein by reference.  In the event of any conflict between the
provisions of this Award and the Agreement, the Agreement shall control.

 

12. Notice.  Any written notice required or permitted by
this Award shall be mailed, certified mail (return receipt requested) or
hand-delivered, addressed to Company’s Senior Vice President – Administration
at Company’s North American headquarters at 1155 Perimeter Center West,
Atlanta, Georgia 30338, with a copy to Legal Department, Mirant Services LLC
1155 Perimeter Center West, Atlanta, Georgia 30338. or to Executive at his most
recent home address on record with the Companyi.  Notices are effective upon receipt.

 

13. Miscellaneous.

 

(a)                                  Limitation
of Rights.  The granting of
this Award shall not give Executive any rights to similar grants in future
years or any right to be retained in the employ or service of the Company or
its subsidiary or interfere in any way with the right of the Company or any
such subsidiary to terminate Executive’s services at any time, or the right of
Executive to terminate his services at any time.

 

(b)                                 Severability.  If any term, provision, covenant or
restriction contained in this Award is held by a court or a federal regulatory
agency of competent jurisdiction to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions contained in
this Award shall remain in full force and effect, and shall in no way be
affected, impaired or invalidated.

 

(c)                                  Controlling
Law.  All issues and
questions concerning the construction, validity, enforcement and interpretation
of this Award shall be governed by, and construed in accordance with, the laws
of the State of Georgia.

 

(d)                                 Arbitration.  Any dispute or controversy arising under or
in connection with the Agreement or this Award or otherwise in connection with
the Executive’s employment by the Company that cannot be mutually resolved by
the parties to the Agreement or this Award and their respective advisors and
representatives shall be settled exclusively by arbitration in Atlanta, Georgia
in accordance with the rules of the American Arbitration Association
before one arbitrator of exemplary qualifications and stature, who shall be
selected jointly by an individual to be designated by the Company and an individual
to be selected by Executive, or if such two individuals cannot agree on the
selection of the arbitrator, who shall be selected by the American Arbitration
Association.  The Company shall reimburse
Executive’s reasonable legal fees if he prevails on a material issue in an
arbitration.

 

B-4

 

(e)                                  Construction.  This Award contains the entire understanding
between the parties and supersedes any prior understanding and agreements
between them representing the subject matter hereof, except that this Award
shall be subject to the terms and conditions set forth in the Agreement.  There are no other representations,
agreements, arrangements or understandings, oral or written, between and among
the parties hereto relating to the subject matter hereof which are not fully
expressed herein.

 

(f)                                    Headings.  Section and other headings contained in
this Award are for reference purposes only and are in no way intended to
describe, interpret, define or limit the scope, extent or intent of this Award
or any provision hereof.

 

IN WITNESS WHEREOF, the undersigned Chairman of the Compensation
Committee of the Board executes this Award on behalf of the Company as of day
and year first set forth above.

 

	
   

  	
  MIRANT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  

 

B-5

 

Exhibit C

 

MIRANT CORPORATION

 

STOCK OPTION AWARD

 

This Stock Option Award (this “Award”) is made as of [INSERT
DATE THAT IS [10] [45] DAYS AFTER EMERGENCE DATE], by MIRANT CORPORATION,
a                      corporation
(the “Company”) to James V. Iaco (“Executive”).

 

W I  T  N  E  S
S  E  T  H:

 

WHEREAS, the Company entered into an employment agreement with
Executive, dated as of [                        ,
2005] (the “Agreement”) providing for the grant to Executive of options
to purchase the common stock (“Common Stock”) of the Company (“Stock
Options”) upon the Company’s emergence from bankruptcy protection; and

 

WHEREAS, pursuant to the terms of the Agreement, the Compensation
Committee of the Board of Directors of the Company (the “Board”) has
granted to Executive an award of Stock Options to promote Executive’s long-term
interests in the success of the Company;

 

NOW THEREFORE, the Company awards Stock Options to Executive pursuant
to the following terms and conditions:

 

1.                                       Stock Option Award.  Subject to the terms and conditions contained
herein and in the Agreement, the Company hereby grants to the Executive an
award of [            ]
Stock Options, at an exercise price of $[          ]
(the “Exercise Price”).  The Stock
Options are not intended to qualify as incentive stock options under Section 422
of the Internal Revenue Code of 1986, as amended.  Each such Stock Option shall entitle
Executive to purchase, upon payment of the Exercise Price, one share of Common
Stock.  Capitalized terms used, but not
otherwise defined, shall have the meaning set forth in the Agreement.

 

2.                                       Vesting.  Except as provided in Section 5 below,
the Stock Options shall vest and become transferable as follows:

 

e.               twenty-five percent
(25%) of the Stock Options shall vest on [insert date that is six months after
the Company’s emergence from bankruptcy protection];

 

f.                 twenty-five
percent (25%) of the Stock Options shall vest on [insert date that is one year
after the Company’s emergence from bankruptcy protection];

 

g.              twenty-five percent
(25%) of the Stock Options shall vest on [insert date that is two years after
the Company’s emergence from bankruptcy protection];

 

h.              twenty-five percent
(25%) of the Stock Options shall vest on [insert date that is three years after
the Company’s emergence from bankruptcy protection].

 

C-1

 

3.                                       Term.  The Stock Options shall expire on the earlier
of 10 years from the date of grant or the date specified for termination of
such Stock Options, as provided in Section 5(c).

 

4.                                       Exercise, Payment and Other Conditions.  The Stock Options may be exercised in whole
or in part to the extent vested.  The
Executive may exercise the Stock Options by delivery to the Company of written
notice providing:  (i) the name of
Executive; (ii) the address to which Common Stock certificates are to be
mailed; and (iii) the number of shares of Common Stock subject to the
Stock Options to be exercised.  Prior to
the delivery to Executive of any stock certificates, the Executive shall have
paid to the Company the Exercise Price of all shares of Common Stock purchased
pursuant to such exercise of the Stock Options as provided in this Award.  The Board may, in its discretion, require the
Executive to pay to the Company an amount equal to the federal, state and local
taxes, if any, required to be withheld or paid by the Company as a result of
such exercise.  All payments shall be in
United States dollars in the form of cash, certified check or bank draft, or,
with the consent of the Board by delivering to the Company (or by attesting to
the ownership of) shares of Common Stock which Executive has owned for at least
six months having a fair market value on the date of exercise equal to the
Exercise Price, plus the minimum withholding tax due in accordance with Section 7,
for the shares of Common Stock with respect to which Executive has exercised
such Stock Options.  The Stock Options
shall be considered exercised on the date the notice and payment are received
by the Chairman of the Compensation Committee of the Board (“Compensation
Committee”).  As promptly as
practicable after receipt of such notice and payment, the Company shall deliver
to Executive a certificate or certificates for the number of shares of Common
Stock with respect to which the Stock Options have been so exercised, issued in
Executive’s name.  Such delivery shall be
deemed effected for all purposes when a stock transfer agent of the Company
shall have deposited such certificate or certificates in the United States
mail, addressed to Executive, at the address specified in the notice.

 

5.                                       Change in Employment Status.

 

a.                                       Termination
Without Cause, Non-Renewal, for Good Reason, Death or Disability.  In the event of Executive’s termination of
employment with the Company (regardless of whether such termination is in
connection with a Change in Control (as defined in the Agreement)) (i) by
the Company without Cause (as defined in the Agreement)), (ii) by reason
of the failure of the Company to offer to renew the Agreement (as provided in
the Agreement), (iii) by Executive for Good Reason (as defined in the
Agreement) or (iv) as a result of Executive’s death or Disability (as
defined in the Agreement), all Stock Options that have not already vested, as
of the date of such termination shall vest immediately and become
nonforfeitable.

 

b.                                      Termination
for Cause, Voluntary Resignation Without Good Reason.  In the event that of Executive’s termination
of employment with the Company (i) by the Company for Cause or (ii) by
reason of Executive’s resignation from the Company for any reason other than
Good Reason, all Stock Options that have not already vested as of the date of
such termination shall be immediately forfeited by Executive and Executive
shall have no further right or interest therein.

 

c.                                       Post-Termination Exercise. Upon
termination of Executive’s employment for any reason other than that described
in subsection b above, Executive shall have one year to

 

C-2

 

exercise any Stock
Options that are vested or become vested as of the date of Executive’s
termination of employment, subject to earlier expiration of the Stock Option as
provided in Section 3.

 

6.                                       Stockholder Rights.  Executive shall not have any of the rights of
a stockholder with respect to the Stock Options, including the right to vote
the Common Stock that will be issued upon the exercise of the Stock Options or
to receive dividends or other distributions paid or made available with respect
to Common Stock of the Company until such Stock Options are exercised.

 

7.                                       Withholding.  Executive shall pay all applicable federal,
state and local income and employment taxes (including taxes of any foreign
jurisdiction), which the Company is required to withhold at any time with
respect to the Stock Options.  Such
payment shall be made in full, at Executive’s election, in cash or check, by
withholding from Executive’s next normal payroll check, or by the tender of
shares of Common Stock (including shares acquired upon exercise of the Stock
Options).  Shares tendered as payment of
required withholding shall be valued at the closing price per share of Common
Stock on the date such withholding obligation arises.

 

8.                                       Transferability.  Except as otherwise provided in this Section 8,
the Stock Options shall not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner, whether by the operation of law or
otherwise.  Executive may transfer the
Stock Options, in whole or in part, to a spouse or lineal descendant (a “Family
Member”), a trust for the exclusive benefit of Executive and/or Family
Members, a partnership or other entity in which all the beneficial owners are
Executive and/or Family Members, or any other entity affiliated with Executive
that may be approved by the Compensation Committee (a “Permitted Transferee”).  Subsequent transfers of the Stock Options
shall be prohibited except in accordance with this Section 8.  All terms and conditions of the Stock
Options, including provisions relating to the termination of Executive’s
employment with the Company, shall continue to apply following a transfer made
in accordance with this Section 8. 
Any attempted transfer of the Stock Options prohibited by this Section 8
shall be null and void.  The shares to be
delivered to Executive upon the exercise of any Stock Options shall be issued
under the Company’s then existing omnibus incentive plan and, if the Common
Stock is then traded on a national securities exchange or inter-dealer
quotation system, including without limitation, NASDAQ, or if the Company is
subject to the reporting requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934, as amended, or any successor provision
thereto, the Company shall take all action necessary to keep in effect a
registration statement under the Securities Act of 1933, as amended, or any
successor provision thereto (the “1933 Act”) enabling Executive to resell
Common Stock without restriction; provided, however, that the Company need not
take such action if, at the time of distribution of Common Stock to Executive,
such shares do not constitute “restricted securities” as defined in Rule 144
under the 1933 Act and Executive is not an “affiliate” of the Company under Rule 405
of the 1933 Act.

 

9.                                       Adjustments.  In the event that the outstanding shares of
Common Stock are subject to a stock split or changed into or exchanged for a
different number or kind of shares or other securities of the Company or other
corporation by reason of a merger, consolidation, reorganization,
recapitalization, reclassification, combination of shares or a dividend payable
in

 

C-3

 

capital stock, or a
similar corporate structural change, then the rights of the Executive shall be
appropriately adjusted as to the number of shares of Common Stock subject to
the Stock Options and/or as to the Exercise Price.  The granting of the Stock Options pursuant to
this Award shall not affect in any way the right or power of the Company to
make adjustments, reorganizations, reclassifications, or changes of its capital
or business structure or to merge, consolidate, dissolve, liquidate, or sell or
transfer all or any part of its business or assets.

 

10.                                 Change in Control.  Subject to the provisions of Section 5
of this Award, the Compensation Committee, in its sole discretion, may at any
time prior to, coincident with or after the time of a Change in Control:

 

(i)                                     provide
for the acceleration of any vesting conditions relating to the exercise of the
Stock Option or that the Stock Option may be exercised in full on or before a
date fixed by the Committee;

 

(ii)                                  provide
for the purchase of the Stock Option, upon Executive’s request, for an amount
of cash equal to the amount, as determined by the Compensation Committee in its
sole discretion, which could have been realized upon the exercise of the Stock
Options had the option been currently exercisable; or

 

(iii)                               cause
the Stock Options then to be assumed, or new rights substituted therefore, by
the surviving corporation in such Change in Control.

 

Any such actions
shall be authorized by the Compensation Committee, whose determination as to
what actions shall be taken and the extent thereof, shall be final.

 

11.                                 Agreement Provisions.  In addition to the terms and conditions set
forth herein, this Award is subject to and governed by the terms and conditions
set forth in the Agreement, which is incorporated herein by reference.  In the event of any conflict between the
provisions of this Award and the Agreement, the Agreement shall control.

 

12.                                 Notice.  Any written notice required or permitted by
this Award shall be mailed, certified mail (return receipt requested) or
hand-delivered, addressed to Company’s Senior Vice President – Administration
at Company’s North American headquarters at 1155 Perimeter Center West,
Atlanta, Georgia 30338, with a copy to Legal Department, Mirant Services, LLC,
1155 Perimeter Center West, Atlanta, GA 
30338, or to Executive at his most recent home address on record with
the Company.  Notices are effective upon
receipt.

 

13.                                 Miscellaneous.

 

(a)                                  Limitation
of Rights.  The granting of
this Award shall not give Executive any rights to similar grants in future
years or any right to be retained in the employ or service of the Company or
its subsidiary or interfere in any way with the right of the Company or any
such subsidiary to terminate Executive’s services at any time, or the right of
Executive to terminate his services at any time.

 

C-4

 

(b)                                 Severability.  If any term, provision, covenant or
restriction contained in this Award is held by a court or a federal regulatory
agency of competent jurisdiction to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions contained in
this Award shall remain in full force and effect, and shall in no way be
affected, impaired or invalidated.

 

(c)                                  Controlling
Law.  All issues and
questions concerning the construction, validity, enforcement and interpretation
of this Award shall be governed by, and construed in accordance with, the laws
of the State of Georgia.

 

(d)                                 Arbitration.  Any dispute or controversy arising under or
in connection with the Agreement or this Award or otherwise in connection with
the Executive’s employment by the Company that cannot be mutually resolved by
the parties to the Agreement or this Award and their respective advisors and
representatives shall be settled exclusively by arbitration in Atlanta, Georgia
in accordance with the rules of the American Arbitration Association
before one arbitrator of exemplary qualifications and stature, who shall be
selected jointly by an individual to be designated by the Company and an
individual to be selected by Executive, or if such two individuals cannot agree
on the selection of the arbitrator, who shall be selected by the American
Arbitration Association.  The Company
shall reimburse Executive’s reasonable legal fees if he prevails on a material
issue in an arbitration.

 

(e)                                  Construction.  This Award contains the entire understanding
between the parties and supersedes any prior understanding and agreements
between them representing the subject matter hereof, except that this Award
shall be subject to the terms and conditions set forth in the Agreement.  There are no other representations,
agreements, arrangements or understandings, oral or written, between and among
the parties hereto relating to the subject matter hereof which are not fully
expressed herein.

 

(f)                                    Headings.  Section and other headings contained in
this Award are for reference purposes only and are in no way intended to
describe, interpret, define or limit the scope, extent or intent of this Award
or any provision hereof.

 

IN WITNESS WHEREOF, the undersigned Chairman of the Compensation
Committee of the Board executes this Award on behalf of the Company as of day
and year first set forth above.

 

	
   

  	
  MIRANT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  

 

C-5

 

Exhibit D

 

FORM OF RELEASE

 

This General Release of
all Claims (this “Agreement”) is entered into by James V. Iaco (“Executive”“)
and Mirant Services, LLC and Mirant Corporation (collectively, the “Company”),
effective as of                                       .

 

In further consideration
of the promises and mutual obligations set forth in the Employment Agreement
between Executive and the Company, dated                              
(the “Employment Agreement”), Executive and the Company agree as
follows:

 

2.                                       Return
of Property.  All Company files,
access keys, desk keys, ID badges, computers, electronic devices, telephones
and credit cards, and such other property of the Company as the Company may
reasonably request, in Executive’s possession must be returned no later than
the date of Executive’s termination from the Company.

 

3.                                       General
Release and Waiver of Claims.

 

(a)                                  Release.  In consideration of the payments and benefits
provided to Executive under the Employment Agreement and after consultation
with counsel, Executive, personally and on behalf of each of Executive’s
respective heirs, executors, administrators, representatives, agents,
successors and assigns (collectively, the “Releasors”) hereby
irrevocably and unconditionally releases and forever discharges the Company and
its subsidiaries and affiliates and each of their respective officers,
employees, directors, and agents (“Releasees”) from any and all claims,
actions, causes of action, rights, judgments, obligations, damages, demands,
accountings or liabilities of whatever kind or character (collectively, “Claims”),
including, without limitation, any Claims under any federal, state, local or
foreign law, that the Releasors had, have, may have, or in the future may
possess, arising out of (i) Executive’s employment relationship with and
service as an employee, officer or director of the Company, and the termination
of such relationship or service, and (ii) any event, condition,
circumstance or obligation that occurred, existed or arose on or prior to the
date hereof; provided, however, that Executive does not release,
discharge or waive any rights to payments and benefits provided under the
Employment Agreement that are contingent upon the execution by Executive of
this Agreement nor any rights to
indemnification or as a shareholder of the Company.

 

(b)                                 Specific Release of ADEA Claims.  In further consideration of the payments and
benefits provided to Executive under the Employment Agreement, the Releasors
hereby unconditionally release and forever discharge the Releasees from any and
all Claims that the Releasors may have as of the date Executive signs this
Agreement arising under the Federal Age Discrimination in Employment Act of
1967, as amended, and the applicable rules and regulations promulgated
thereunder (“ADEA”).  By signing
this Agreement, Executive hereby acknowledges and confirms the following:  (i) Executive was advised by the Company
in connection with his termination to consult with an attorney of his choice
prior to signing this Agreement and to have such attorney explain to Executive
the terms of this Agreement, including, without limitation, the terms relating
to Executive’s release of claims arising under

 

D-1

 

ADEA, and Executive has in fact consulted
with an attorney; (ii) Executive was given a period of not fewer than 21
days to consider the terms of this Agreement and to consult with an attorney of
his choosing with respect thereto; and (iii) Executive knowingly and voluntarily
accepts the terms of this Agreement. 
Executive also understands that he has seven (7) days following the
date on which he signs this Agreement within which to revoke the release
contained in this paragraph, by providing the Company a written notice of his
revocation of the release and waiver contained in this paragraph.

 

(c)                                  No Assignment.  Executive represents and warrants that he has
not assigned any of the Claims being released under this Agreement.

 

4.                                       Proceedings.  Executive has not filed, and agrees not to
initiate or cause to be initiated on his behalf, any complaint, charge, claim
or proceeding against the Releasees before any local, state or federal agency,
court or other body relating to his employment or the termination of his
employment, other than with respect to the obligations of the Company to
Executive under the Employment Agreement (each, individually, a “Proceeding”),
and agrees not to participate voluntarily in any Proceeding.  Executive waives any right he may have to
benefit in any manner from any relief (whether monetary or otherwise) arising
out of any Proceeding.

 

5.                                       Remedies.  In the event Executive initiates or
voluntarily participates in any Proceeding, or if he fails to abide by any of
the terms of this Agreement or his post-termination obligations contained in
the Employment Agreement, or if he revokes the ADEA release contained in
Paragraph 2(b) of this Agreement within the seven-day period provided
under Paragraph 2(b), the Company may, in addition to any other remedies it may
have, reclaim any amounts paid to him under the severance provisions of the
Employment Agreement or terminate any benefits or payments that are
subsequently due under the Employment Agreement, without waiving the release
granted herein.  Executive acknowledges
and agrees that the remedy at law available to the Company for breach of any of
his post-termination obligations under the Employment Agreement or his
obligations under Paragraphs 2 and 3 of this Agreement would be inadequate and
that damages flowing from such a breach may not readily be susceptible to being
measured in monetary terms.  Accordingly,
Executive acknowledges, consents and agrees that, in addition to any other
rights or remedies that the Company may have at law or in equity, the Company
shall be entitled to seek a temporary restraining order or a preliminary or
permanent injunction, or both, without bond or other security, restraining
Executive from breaching his post-termination obligations under the Employment
Agreement or his obligations under Paragraphs 2 and 3 of this Agreement.  Such injunctive relief in any court shall be
available to the Company, in lieu of, or prior to or pending determination in,
any arbitration proceeding.

 

Executive understands
that by entering into this Agreement he will be limiting the availability of
certain remedies that he may have against the Company and limiting also his
ability to pursue certain claims against the Company.

 

D-2

 

6.                                       Severability
Clause.  In the event any provision
or part of this Agreement is found to be invalid or unenforceable, only that
particular provision or part so found, and not the entire Agreement, will be
inoperative.

 

7.                                       Non-admission.  Nothing contained in this Agreement will be
deemed or construed as an admission of wrongdoing or liability on the part of
the Company.

 

8.                                       Governing
Law.  All matters affecting this
Agreement, including the validity thereof, are to be governed by, and
interpreted and construed in accordance with, the laws of the State of Georgia
applicable to contracts executed in and to be performed in that State.

 

9.                                       Arbitration.  Any dispute or controversy arising under or
in connection with this Agreement or otherwise in connection with Executive’s
employment by the Company that cannot be mutually resolved by the parties to
this Agreement and their respective advisors and representatives shall be
settled exclusively by arbitration in Atlanta, Georgia in accordance with the rules of
the American Arbitration Association before one arbitrator of exemplary
qualifications and stature, who shall be selected jointly by an individual to
be designated by the Company and an individual to be selected by Executive or,
if such two individuals cannot agree on the selection of the arbitrator, who
shall be selected by the American Arbitration Association.

 

10.                                 Notices.  All notices or communications hereunder shall
be in writing, addressed as follows:

 

To the Company:

 

Mirant Corporation

 

To Executive:

 

With a copy to:

 

All such notices shall be
conclusively deemed to be received and shall be effective (i) if sent by
hand delivery, upon receipt or (ii) if sent by electronic mail or
facsimile, upon confirmation of receipt by the sender of such transmission.

 

EXECUTIVE ACKNOWLEDGES THAT HE
HAS READ THIS AGREEMENT AND THAT HE FULLY KNOWS, UNDERSTANDS AND APPRECIATES
ITS CONTENTS, AND THAT HE HEREBY EXECUTES THE SAME AND MAKES THIS AGREEMENT AND
THE RELEASE AND AGREEMENTS PROVIDED FOR HEREIN VOLUNTARILY AND OF HIS OWN FREE
WILL.

 

D-3

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first set forth above.

 

 

	
   

  	
  MIRANT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  MIRANT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James
  V. Iaco

  

 

D-4

 

	
   

  	
   

  	
  

  Exhibit E

  	
   

  	
  

  

 

CONFIDENTIALITY AGREEMENT

 

In consideration of my
Employment or continued Employment with Mirant Corporation and for other
valuable and adequate consideration which I agree has been exchanged, I agree
to comply with the Company’s Confidentiality Policy and this Confidentiality
Agreement, specifically:

 

1.                                       I
agree that the following words and phrases mean:

 

a)                                      “Affiliate(s)”
means any corporation or entity that is a subsidiary or business unit of Mirant
Corporation.

 

b)                                     “Company”
means Mirant Corporation, its divisions, its parents, its present and future
subsidiaries, and successors.

 

c)                                      “Confidential
Information” means and includes items that the Company marks or treats as
confidential.  It also includes
information (other than Trade Secrets) that has any value to the Company, is
known to persons inside the Company for purposes of doing their jobs, and is
not generally made known to persons outside the Company.

 

d)                                     “Confidentiality
Policy” means the policies and procedures the Company uses to protect its
valuable information.  The
Confidentiality Policy may change periodically and all Mirant employees are
expected to comply with the current Confidentiality Policy at all times.

 

e)                                      “Employment”
means my present or future job with the Company.  Except during those times when my job may
have been subject to a valid employment agreement, Employment with the Company
is, has been, and after this Agreement continues to be “employment at will.”

 

f)                                        “Third
Party” or “Third Parties” means a person, firm or some entity other than
the Company and its employees.

 

g)                                     “Trade
Secret(s)” means those things defined as trade secrets by law.  Trade Secrets include information about the
Company business that is valuable to the Company and gives the Company an
advantage in the market place.  This type
of information is not generally made known or available to people outside the

 

E-1

 

Company, and the Company protects it from
being disclosed.  Information that is a
Trade Secret may be found in such things as software (code and programs), formulas, patterns,
plans, charts, client lists (actual and possible), leads, pricing information,
confidential business arrangements, marketing plans, and proposals.  Trade Secrets may be found in other kinds of
material as well.

 

2.                                       I
agree that during my Employment, I have been or may be given access to Trade
Secrets or Confidential Information belonging to the Company, its Affiliates,
or to Third Parties.  I agree that I will
only use this information for the benefit of the Company except as required by
applicable law or in any judicial or administrative process.  I understand and agree that I must not copy,
reveal, give or make known to anyone outside the Company any Trade Secret or
Confidential Information, without authorization by management and appropriate
safeguards.  I further understand and
agree that the Company is entitled to this protection:  (a) for Trade Secrets as long as it is a
Trade Secret under the law, and (b) for Confidential Information as long
as I am employed by the Company and for three (3) years after my
Employment ends.

 

3.                                       I
agree to not disclose any Confidential Information or Trade Secrets belonging to
Third Parties when:  (a) the Company
has agreed to protect such information, and (b) I am told or determine
that the Third Party’s information should be treated as confidential.  I will keep the Third Party’s information
confidential in the manner required by the Company.

 

4.                                       I
agree that I will provide the Company all of its Confidential Information and
Trade Secrets I have or that are under my control (including any belonging to
any Affiliate or Third Party) at any time the Company requests it.

 

5.                                       I agree
to return the originals and all copies of the Confidential Information whether
in electronic, printed or any other form before the last day of my Employment.

 

6.                                       I
agree that this Confidentiality Agreement (a) is governed by the law of
the State of Georgia; (b) is binding on my heirs and representatives; (c) may
be assigned by Mirant Corporation; (d) continues in effect after the end
of my Employment; and (e) cannot be amended or released except in a
document signed by me and the Company.

 

7.                                       I
agree that this Confidentiality Agreement is intended to replace any previous
agreement, or portions of any agreement that contains confidentiality
requirements, that conflicts with this one. 
I further agree that this Confidentiality Agreement is to be read to give
the Company the greatest protection possible without being contrary to
law.  If any court finds part of this
Confidentiality Agreement to be unenforceable, I

 

E-2

 

agree
that part will be struck out and the remainder of the Confidentiality Agreement
will continue in effect.

 

In witness hereof, I have executed this
Confidentiality Agreement this                       
day of                            ,
2005.

 

 

	
   

  	
   

  	
   

  	
   

  
	
  HR
  Representative

  	
  Employee
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name & Title

  	
  Print
  Name

  
							

 

E-3

 

	
   

  	
   

  	
  

  Exhibit F

  	
   

  	
  

  

 

INTELLECTUAL PROPERTY AGREEMENT

 

In consideration of my
Employment or continued Employment with Mirant Corporation, and for other
valuable and adequate consideration which I agree has been exchanged, I agree
to comply with the Company’s Intellectual Property Policy and this Intellectual
Property Agreement (“Agreement”), specifically:

 

1.                                       I agree
that the following words and phrases mean:

 

a)                                      “Affiliate(s)”
means any corporation or entity that is a subsidiary or business unit of Mirant
Corporation.

 

b)                                     “Company”
means Mirant Corporation, its divisions, its parents, its present and future
subsidiaries, and successors.

 

c)                                      “Employment”
means my present or future job with the Company.  Except during those times when my job may
have been subject to a valid employment agreement, Employment with the Company
is, has been, and after this Agreement continues to be “employment at will.”

 

d)                                     “Intellectual
Property” means any invention, discovery, creation, improvement or
design.  Such Intellectual Property
includes machines, processes, concepts, chemical compounds, computer programs,
authored material, trademarks, service marks, and improvements to any of these
items; Intellectual Property may also include other things not listed
here.  An individual’s work (and that of
those working together) will be considered the Company’s Intellectual Property
if it: (i) is related to any job the individual holds or has held with the
Company or its Affiliates, (ii) is created, worked on or implemented while
the individual is at work, or (iii) is created, worked on or implemented
using Company or Affiliate personnel, facilities, equipment knowledge,
information, resources or materials.

 

e)                                      “Intellectual
Property Policy” means the policies and procedures the Company uses to
protect its valuable Intellectual Property. 
The Intellectual Property Policy may change periodically and all Mirant
employees are expected to comply with the current Intellectual Property Policy
at all times.

 

f)                                        “Third
Party” or “Third Parties” means a person, firm or some entity other
than the Company and its employees.

 

F-1

 

2.                                       I
agree that I will fully inform the Company about any material that might be
Intellectual Property at the earliest possible time.  I also agree that I will not disclose
innovations or potential Intellectual Property to Third Parties and will treat
it as covered by the Company’s Confidentiality Policy and my Confidentiality
Agreement with the Company.

 

3.                                       As
a part of this Agreement, I transfer to the Company all rights to Intellectual
Property which comes into existence during my Employment.  I agree that all Intellectual Property is a “work
for hire” (as defined in the United States Code) belonging exclusively to the
Company.  No Intellectual Property I
transfer will be considered “joint work” belonging to anyone other than the
Company.

 

4.                                       I
agree to sign any documents, and provide any assistance the Company may need to
protect the Intellectual Property, obtain registrations (including Patents,
Trademarks, Copyrights, etc.), and establish and maintain its title to the
Intellectual Property.  The Company will
pay expenses required to obtain these protections.

 

5.                                       I
understand that the Company may decide, for whatever reason, not to pursue
legal protection for Intellectual Property created by me.  The company may also choose to release its
interest in the Intellectual Property to me. 
If this happens, I agree to execute any documents necessary to give the
Company the perpetual right and license to use, maintain, modify, make
derivative works from, practice and market the Intellectual Property at no cost
to the Company.

 

6.                                       I
agree that I will provide the Company all of its Intellectual Property that I
have or that is under my control (including any belonging to any Affiliate or
Third Party) at any time the Company requests it.

 

7.                                       I
agree to return the originals and all copies of the Intellectual Property
information whether in electronic, printed or any other form before the last
day of my Employment.

 

8.                                       I
agree that this Agreement (a) is governed by the laws of the State of
Georgia; (b) is binding on my heirs and representatives; (c) may be
assigned by the Company; (d) continues in effect after the end of my
Employment; and (e) cannot be amended or released except in a document
signed by me and the Company.

 

9.                                       I
agree that this Agreement is intended to replace any previous agreement, or portions
of any agreement that contains intellectual property requirements, that
conflicts with this one.  I further agree
that this Agreement is be read to give the Company the greatest protection
possible without being contrary to law. 
If any court finds part of this Agreement to be unenforceable, I agree
that part will be struck out and the remainder of the Agreement will continue
in effect.

 

F-2

 

In witness hereof, I have executed this
Confidentiality Agreement this                  
day of                                ,
                               .

 

 

	
   

  	
   

  	
   

  	
   

  
	
  HR
  Representative

  	
  Employee
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Print

  
	
  Name &
  Title

  	
  Print
  Name

  
							

 

F-3

 

EXHIBIT G

 

FORM OF RELEASE BY
THE COMPANY

 

This Release of Claims
(this “Agreement”) is entered into by James V. Iaco (“Executive”)
and Mirant Services, LLC and Mirant Corporation (collectively, the “Company”),
effective as of [DATE].

 

In consideration of the
promises and mutual obligations set forth in the Employment Agreement between
Executive and the Company, dated                                        
(the “Employment Agreement”) and other good and valuable consideration,
Executive and the Company agree as follows:

 

1.                                       General
Release and Waiver of Claims.

 

(a)                                  Release.  The Company and its subsidiaries and
affiliates (“Company Releasors”) hereby irrevocably and unconditionally
release and forever discharge Executive personally and each of Executive’s
heirs, executors, administrators, representatives, agents, successors and
assigns (collectively, the “Executive Releasees”) from any and all
claims, actions, causes of action, rights, judgments, obligations, damages,
demands, accountings or liabilities of whatever kind or character
(collectively, “Claims”), including, without limitation, any Claims
under any federal, state, local or foreign law, that the Company Releasors had,
have, may have, or in the future may possess, arising out of Executive’s
employment relationship with and service as an employee, officer or director of
the Company, and the termination of such relationship or service; provided,
however, that the Company Releasors do not release, discharge or waive
any Claims arising out of or resulting from Executive’s fraud, gross-negligence
or other violation of law.

 

(b)                                 No Assignment.  The Company represents and warrants that it
has not assigned any of the Claims being released under this Agreement.

 

2.                                       Proceedings.  The Company has not filed, and agrees not to
initiate or cause to be initiated on its behalf, any complaint, charge, claim
or proceeding against the Executive Releasees before any local, state or
federal agency, court or other body based on the Claims released under this
Agreement (a “Proceeding”) and agrees not to participate voluntarily in
any Proceeding.

 

3.                                       Remedies.  The Company acknowledges and agrees that the
remedy at law available to the Executive for breach of any of the Company’s
obligations under Paragraphs 1 and 2 of this Agreement would be inadequate
and that damages flowing from such a breach may not readily be susceptible to
being measured in monetary terms. 
Accordingly, the Company acknowledges, consents and agrees that, in
addition to any other rights or remedies that Executive may have at law or in
equity, Executive shall be entitled to seek a temporary restraining order or a
preliminary or permanent injunction, or both, without bond or other security,
restraining the Company from breaching its obligations under Paragraphs 1 and
2 of

 

G-1

 

this Agreement.  Such injunctive relief in any court shall be
available to Executive, in lieu of, or prior to or pending determination in,
any arbitration proceeding.

 

The Company understands
that by entering into this Agreement it will be limiting the availability of
certain remedies that it may have against Executive and limiting also its
ability to pursue certain claims against Executive.

 

4.                                       Severability
Clause.  In the event any provision
or part of this Agreement is found to be invalid or unenforceable, only that
particular provision or part so found, and not the entire Agreement, will be
inoperative.

 

5.                                       Non-admission.  Nothing contained in this Agreement will be
deemed or construed as an admission of wrongdoing or liability on the part of
Executive.

 

6.                                       Governing
Law.  All matters affecting this
Agreement, including the validity thereof, are to be governed by, and
interpreted and construed in accordance with, the laws of the State of Georgia
applicable to contracts executed in and to be performed in that State.

 

7.                                       Arbitration.  Any dispute or controversy arising under or
in connection with this Agreement or otherwise in connection with Executive’s
employment by the Company that cannot be mutually resolved by the parties to
this Agreement and their respective advisors and representatives shall be
settled exclusively by arbitration in Atlanta, Georgia in accordance with the rules of
the American Arbitration Association before one arbitrator of exemplary
qualifications and stature, who shall be selected jointly by an individual to
be designated by the Company and an individual to be selected by Executive or,
if such two individuals cannot agree on the selection of the arbitrator, who
shall be selected by the American Arbitration Association.

 

8.                                       Notices.  All notices or communications hereunder shall
be in writing, addressed as follows:

 

To the Company:

 

Mirant Corporation

 

 

To Executive:

 

G-2

 

All such notices shall be
conclusively deemed to be received and shall be effective (i) if sent by
hand delivery, upon receipt or (ii) if sent by electronic mail or
facsimile, upon confirmation of receipt by the sender of such transmission.

 

THE COMPANY ACKNOWLEDGES THAT IT
HAS READ THIS AGREEMENT AND THAT IT FULLY KNOWS, UNDERSTANDS AND APPRECIATES
ITS CONTENTS, AND THAT IT HEREBY EXECUTES THE SAME AND MAKES THIS AGREEMENT AND
THE RELEASE AND AGREEMENTS PROVIDED FOR HEREIN VOLUNTARILY AND OF ITS OWN FREE
WILL.

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first set forth above.

 

	
   

  	
  MIRANT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  MIRANT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James
  V. Iaco

  

 

G-3

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