Document:

exv10w3

Exhibit 10.3

CHAIRMAN COMPENSATION AGREEMENT

     This CHAIRMAN COMPENSATION AGREEMENT (“Agreement”), dated as of August 9, 2010 and, except as
otherwise specifically provided herein, effective as of January 1, 2011 (the “Effective Date”), by
and between Equity One, Inc., a Maryland corporation (the “Company”), and Chaim Katzman (the
“Chairman”).

RECITALS

     The Chairman is the founder of the Company, acted as the Chief Executive Officer of the
Company since its inception through March 31, 2007 and has acted as Chairman of the Company since
its inception.

     The Chairman was employed by the Company pursuant to an employment agreement made effective as
of January 1, 2002 and as amended effective September 1, 2003, which superseded an earlier
employment agreement effective as of January 1, 1996, and has been subsequently retained, and is
currently retained, by the Company pursuant to a Chairman Compensation Agreement (as amended, the
“Prior Chairman Compensation Agreement”), effective as of January 1, 2007, by and between the
Company and the Chairman, and as amended by a First Amendment to Chairman Compensation Agreement
and Restricted Stock Agreement, dated as of August 9, 2010 (the “First Amendment”).

     The Company recognizes that the Chairman’s talents, abilities and stature in the industry are
unique and have been, and in the future will be, integral to the success of the Company. The
Company believes that it is valuable to the Company to retain the services of the Chairman beyond
the term of the Prior Chairman Compensation Agreement and that the Chairman’s continuing
contribution to the growth of the Company in the future will be substantial. The Company desires
to provide for the continued involvement of the Chairman beyond the term of the Prior Chairman
Compensation Agreement on terms that will encourage the Chairman to continue to attempt to increase
the value of the Company. The Chairman is willing to remain involved with the Company under the
terms and conditions provided herein.

     In order to effect the foregoing, the Company and the Chairman wish to enter into an agreement
on the terms and conditions set forth below. Accordingly, in consideration of the premises and the
respective covenants and agreements of the parties herein contained, and intending to be legally
bound hereby, the parties hereto agree as follow:

     The Company desires to continue to retain the Chairman as of and after the Effective Date, on
the terms and conditions set forth in this Agreement, and the Chairman desires to be so involved
with the Company.

     IN CONSIDERATION of the premises and the mutual covenants set forth below and the agreements
set forth in the First Amendment, the parties hereby agree as follows:

 

 

AGREEMENT

	1.	 	Arrangement. Subject to the earlier termination of the Prior Chairman Compensation
Agreement in accordance with the terms thereof, the Company hereby agrees to continue to
retain the services of the Chairman beyond the term of the Prior Chairman
Compensation Agreement and the Chairman hereby agrees to be involved with the Company on the
terms and conditions hereinafter set forth. The terms and conditions of the Chairman’s
retention by the Company through December 31, 2010 are and shall continue to be governed by
the terms and conditions set forth in the Prior Chairman Compensation Agreement, but
thereafter (unless the Prior Chairman Compensation Agreement is terminated on or prior to
December 31, 2010 in accordance with the terms thereof (other than as a result or
consequence of the expiration of the term thereof) the terms and conditions of the
Chairman’s retention by the Company shall be governed by the terms and conditions of this
Agreement, which terms and conditions shall, from and after the Effective Date, supersede
and control.
	 
	2.	 	Term. The term of this Agreement (the “Term”) shall commence on the Effective Date
and (subject to its earlier termination in accordance with the terms hereof) shall continue
through December 31, 2014. Unless earlier terminated in accordance with the terms hereof,
this Agreement and the Term automatically shall be renewed annually thereafter, unless either
party gives the other party prior written notice at least 90 days before the expiration of the
Term of that party’s intent not to renew this Agreement.
	 
	3.	 	Position and Duties.

	 	(a)	 	Chairman. At all times during the Term, subject to the Chairman’s
election to the Board and as Chairman thereof, the Chairman shall serve as the Chairman
of the Board of Directors of the Company (“Board”) and (except as provided in the next
following sentence) shall report solely and directly to the Board. During the Term,
the Chairman shall be reasonably available to management and to the Board between Board
meetings to counsel and advise the board and management, including providing advice to
management with respect to operations, investments and divestitures. The Chairman
shall have those powers and duties normally associated with such position and such
other powers and duties as the Board properly may from time to time reasonably
prescribe, provided that such other powers and duties are consistent with the
Chairman’s position at that time, including, without limitation, such other duties as
are not otherwise provided for herein and (unless otherwise agreed to by the Chairman)
are not materially more burdensome that those previously performed by the Chairman.
The Chief Executive Officer of the Company shall continue to report to the Chairman and
the Board.
	 
	 	(b)	 	Director. During the Term, the Company agrees to nominate the Chairman
as a member of the Board for each successive term and use reasonable good faith efforts
to cause the Chairman to be elected as a member and Chairman of the Board, including,
without limitation, recommending the Chairman to be elected as a member of the Board in
the proxy statement distributed to stockholders regarding the election of members of
the Board; provided, however, that the Company’s obligations under the foregoing
provisions of this Section 3(b) shall no longer apply if the Chairman has been removed
from the Board pursuant to Section 5.8 of the Company’s charter (or under any similar
future provision under the Company’s charter) or has not been elected to the Board at a
prior annual meeting of shareholders for the election of members to the Board.

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	 	(c)	 	Other Activities by Chairman. The Company recognizes that the Chairman
presently is involved and may in the future be involved with other ventures and
businesses to which the Chairman will devote, from time to time, his business time,
attention, skill and efforts. It is understood and agreed that the Chairman may,
directly or indirectly, engage in other businesses in the United States provided such
activities are not materially inconsistent with his duties as Chairman and as a Board
member of the Company. Furthermore, the Chairman may, directly or indirectly, engage
in any businesses, without limitation, outside the United States. The Company’s
consent to such other activities shall not relieve the Chairman of any obligations that
may exist at any time to disclose to the Company any related party transactions with
the Company, nor shall such consent affect any practices, policies or procedures the
Company may from time to time implement to manage or authorize any related party
transactions.

	4.	 	Place of Performance. The Company agrees to provide the Chairman with the office he
currently uses at the Company’s corporate headquarters in North Miami Beach, Florida. The
Company will also make available to the Chairman offices of the Company in other locations and
provide to the Chairman office space and the resources of the Company at such offices when the
Chairman is in such other locations on the Company’s and/or any of its subsidiaries’ business.
It is agreed that the Chairman is not required to perform any of his duties as Chairman at
any of such offices or otherwise at any particular time or times and may engage in reasonable
activities unrelated to the Company at such offices and may utilize the resources of the
Company at such offices in such activities, including the reasonable use of personnel,
equipment and telephone system.
	 
	5.	 	Payments and Related Matters.

	 	(a)	 	Bonus. For each calendar year during the Term commencing with calendar
year 2011, Chairman shall be eligible to receive a bonus (the “Bonus”) to be determined
in the discretion of the Compensation Committee of the Board.
	 
	 	(b)	 	Long Term Incentive Compensation. On September 23, 2006, the Company
issued to the Chairman, pursuant to the Company’s 2000 Executive Incentive Compensation
Plan (the “Incentive Plan”), Options (as defined in the Incentive Plan) to acquire
437,317 shares of the Company’s capital stock, with an exercise price of $24.12 per
share. The parties acknowledge that such Options were granted as consideration to the
Chairman for his execution of the Prior Chairman Compensation Agreement, that the first
three of four equal installments of such Options vested on December 31, 2007, December
31, 2008 and December 31, 2009 and that (subject to the conditions of the Incentive
Plan, the terms of such grant and the terms and conditions set forth in the Prior
Chairman Compensation Agreement), the fourth of such four equal installments will vest
on December 31, 2010. Each of such Options shall expire ten years from the date of the
grant thereof.

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	 	 	 	In addition, the Company agrees to grant and issue to the Chairman concurrently with
and on the date of the execution and delivery of this Agreement by the parties
hereto, pursuant to the Incentive Plan and in the form of Restricted Stock
Agreement attached as Exhibit A, 380,000 shares of Restricted Stock (as
defined in the Incentive Plan). The vesting as hereinafter provided of the
specified portions of such shares of Restricted Stock is subject, however, to the
continued retention of the Chairman hereunder on the Effective Date and as of each
respective “Vesting Date”. The aforesaid 380,000 shares of Restricted Stock shall
vest as follows: 31,250 shares on the Effective Date; 7,266 shares on the first day
of each calendar month beginning February 2011 and ending December 2014; and 7,248
shares on December 31, 2014. The Vesting Dates shall be, respectively, the
Effective Date, the first (1st) day of each calendar month, commencing on
February 1, 2011 and continuing for the next forty-six (46) consecutive months, and
with the forty-ninth (49th) and final Vesting Date with respect to 7,248
shares occurring one day preceding the fourth anniversary of the Effective Date
(i.e., on December 31, 2014).
	 
	 	 	 	The Chairman shall be entitled to receive dividends on and to vote all of the shares
of Restricted Stock so granted and issued to the Chairman, whether such shares are
vested or not, and the Company shall cause any Restricted Stock award made under the
Incentive Plan in satisfaction of the Company’s obligation hereunder to so provide;
provided, however, that, notwithstanding the foregoing, the Chairman shall not be
entitled to receive on or with respect to any shares of Restricted Stock granted and
issued pursuant to this Agreement any regular quarterly cash dividends that are
declared by the Board and payable or distributable to the Company’s stockholders of
record prior to the Effective Date or to vote any such shares of Restricted Stock
prior to the Effective Date but the Chairman shall be entitled to receive
any special or extraordinary dividend or distribution to the Company’s stockholders
of record on or after the date hereof (including, without limitation, any securities
issued or distributed to the Company’s stockholders of record on or after the date
hereof in connection with any stock split, recapitalization, stock exchange, merger,
combination or other reorganization or similar transaction).
	 
	 	(c)	 	Expenses. The Company shall reimburse the Chairman for all reasonable
expenses incurred by him in the discharge of his duties hereunder, including travel
expenses, upon the presentation of reasonably itemized statements of such expenses in
accordance with the Company’s policies and procedures now in force or as such policies
and procedures may be modified with respect to all senior executive officers of the
Company. Any frequent flyer miles or points and similar benefits provided by hotels,
credit card companies and others received by the Chairman in connection with his
business travel shall be retained by the Chairman for his personal use.
	 
	 	(d)	 	Home Office. The Company shall provide, at the Company’s cost, the
Chairman with cellular telephones and, at the Chairman’s home, with office furniture,
business telephone lines and related telephone equipment, a computer and related
peripherals, high speed Internet access, a copy machine, a facsimile machine and any
other reasonably necessary office equipment. The parties recognize that the cellular
telephones and at home office are necessary for the Chairman to perform his duties
hereunder. The Company recognizes and agrees that the Chairman (and
any one authorized by the Chairman, including family members) shall be permitted to
use the cellular telephones and at home office equipment and services for personal
use at no charge to the Chairman, provided, however, that the Chairman shall be
solely responsible for the payment of any income taxes attributable to the provision
of such benefits.

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	 	(e)	 	Registration. The shares of Restricted Stock awarded to the Chairman
in accordance with Section 5(b) above shall be covered by and issued pursuant to an
effective registration statement on Form S-8 (or any successor or replacement form)
under the Securities Act of 1933, as amended (the “Securities Act”).
	 
	 	(f)	 	Register Existing Shares. If, at any time during the term of this
Agreement, the Company proposes to register any of its securities under the Securities
Act, the Company shall give the Chairman the right and opportunity to register, each
time that the Company so proposes, any or all securities of the Company held by the
Chairman, including, any stock options and securities subject to such stock options.
Nothing contained in this Agreement shall limit or modify any registration rights
granted to the Chairman by the Company pursuant to any other contract or arrangement,
including, without limitation, the Prior Chairman Compensation Agreement.
	 
	 	(g)	 	No Hedging. In consideration for his entitlement to receive incentive
compensation as provided herein in the form of shares of Restricted Stock, the Chairman
agrees that neither he nor any member of his immediate family (as such term is defined
in paragraph (a)(iii) of Instruction 1 to Item 404(a) of Regulation S-K) nor any
Controlled Private Entity (as hereinafter defined) will purchase any financial
instruments (including prepaid variable forward contracts, equity swaps, collars and
exchange funds) that are designed to hedge or offset any decrease in the market value
of equity securities of the Company that (i) have been granted to the Chairman by the
Company as part of the compensation of the Chairman (including the Restricted Stock
granted and issued pursuant to this Agreement) or (ii) are held by the Chairman, by any
member of his immediate family or by any entity that (A) is not a “publicly traded
company” (which term includes, without limitation, any company that files reports with
the Securities and Exchange Commission, whether voluntarily, pursuant to Section 15(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or as a result
of having a class of its securities registered pursuant to Section 12 of the Exchange
Act; any company whose securities are quoted or traded on any domestic over-the-counter
or other securities market; and any company whose securities are listed for trading or
quoted on any foreign stock exchange, foreign over-the-counter market or other foreign
securities market), and (B) of which at least 75% of the equity interests (whether
directly or through one or more intermediaries) are owned by the Chairman and/or the
Chairman’s immediate family member(s) (as such term is defined in paragraph (a)(iii) of
Instruction 1 to Item 404(a) of Regulation S-K) (a “Controlled Private Entity”).
Solely for purposes of clause (B) above in determining the percentage of the equity
interests in any company that is owned through one or more intermediaries by the
Chairman and/or the Chairman’s immediate family member(s), the Chairman and/or the
Chairman’s immediate
family member(s) shall be deemed to own only that equity percentage that is the
product of their ownership interest in the successive layers of ownership. By way
of example only, if the Chairman and/or the Chairman’s immediate family member(s)
own 80% of the equity interest in company A, which in turn owns 60% of the equity
interest in company B, then the Chairman and/or the Chairman’s immediate family
member(s) shall be deemed to own a 48% equity interest in company B.

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	6.	 	Termination. This Agreement may be terminated during the Term under the following
circumstances:

	 	(a)	 	Death. This Agreement shall terminate automatically upon the
Chairman’s death.
	 
	 	(b)	 	Disability. If, as a result of the Chairman’s incapacity due to
physical or mental illness, the Chairman shall have been substantially unable to
perform his duties hereunder for an entire period in excess of one hundred twenty (120)
days in any 12-month period, the Company shall have the right to terminate this
Agreement as a result of the Chairman’s “Disability”, and such termination in and of
itself shall not be, nor shall it be deemed to be, a breach of this Agreement.
	 
	 	(c)	 	Without Cause. The Company shall have the right, subject to
appropriate action of the Board, to terminate this Agreement for any reason or for no
reason, which termination shall be deemed to be without Cause, and such termination in
and of itself shall not be, nor shall it be deemed to be, a breach of this Agreement.
The Company shall not take action under this subsection (c) unless and until the
Company has delivered to the Chairman a copy of a resolution duly adopted by sixty-six
and two-thirds (66-2/3) or more of the Board (excluding Chairman and any officer or
employee of the Company for purposes of determining such threshold) at a meeting of the
Board called and held for such purpose, approving and authorizing such action.
	 
	 	(d)	 	Cause. The Company shall have the right, subject to appropriate action
of the Board, to terminate this Agreement with Cause, and such termination in and of
itself shall not be, nor shall it be deemed to be, a breach of this Agreement. For
purposes of this Agreement, the Company shall have “Cause” to terminate this Agreement
upon the Chairman’s:

	 	(i)	 	Breach of any material provisions of this Agreement;
	 
	 	(ii)	 	Conviction of a felony, capital crime or any crime involving
moral turpitude, including, but not limited to, crimes involving illegal drugs;
or
	 
	 	(iii)	 	Willful misconduct that is materially economically injurious
to the Company.

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	 	 	 	For purposes of this Section 6(d), no act, or failure to act, by the Chairman shall
be considered “willful” unless committed in bad faith and without a reasonable
belief that the act or omission was in the best interests of the Company; provided,
however, that the willful requirement outlined in paragraphs (iii) above shall be
deemed to have occurred if the Chairman’s action or non-action continues for more
than ten (10) days after the Chairman has received written notice of the
inappropriate action or non-action. Failure to achieve performance goals, in and of
itself, shall not be grounds for a termination with Cause.
	 
	 	 	 	Cause shall not exist under paragraph (i) or (iii) above unless and until the
Company has delivered to the Chairman a copy of a resolution duly adopted by
sixty-six and two-thirds percent (66-2/3%) or more of the Board (excluding the
Chairman and any officer or employee of the Company for purposes of determining such
threshold) at a meeting of the Board called and held for such purpose, finding that,
in the good faith opinion of the Board, the Chairman was guilty of the conduct set
forth in paragraph (i) or (iii) and specifying the particulars thereof in detail.
However, in the case of conduct described in paragraph (i), Cause will not be
considered to exist unless (a) the Chairman is given notice of such breach and (b)
if such breach can reasonably be cured within forty-five (45) days, such breach has
been cured within forty-five (45) days after the date of such notice to the
satisfaction of sixty-six and two-thirds percent (66-2/3%) or more of the Board
(excluding the Chairman and any officer or employee of the Company for purposes of
determining such threshold) or, if such breach cannot reasonably be cured within
such forty-five (45) days, the Chairman has promptly commenced to cure such breach,
has thereafter diligently taken all appropriate steps to cure such breach as quickly
are reasonably practical and has cured such breach within ninety (90) days after the
date of such notice, all to the satisfaction of sixty-six and two-thirds percent
(66-2/3%) or more of the Board (excluding the Chairman and any officer or employee
of the Company for purposes of determining such threshold).
	 
	 	(e)	 	Voluntary Termination by the Chairman. The Chairman shall have the
right at any time to terminate this Agreement by providing the Company with Notice of
Termination as provided in Section 7 below. Any termination pursuant to this paragraph
shall not in and of itself be, nor shall it be deemed to be, a breach of this
Agreement.
	 
	 	(f)	 	Termination of Agreement for Good Reason. The Chairman shall have the
right to terminate this Agreement for Good Reason. For purposes of this Agreement,
“Good Reason” means:

	 	(i)	 	the material breach by the Company of any of its agreements set
forth herein and the failure of the Company to correct such breach within
thirty (30) days after the receipt by the Company of written notice from the
Chairman specifying in reasonable detail the nature of such breach; or
	 
	 	(ii)	 	subject to Section 3(b), failure to recommend to the Company’s
stockholders the Chairman’s election to the Board and as Chairman of the Board
or the failure of the Board to nominate or elect him as Chairman of the Board.

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	 	(g)	 	Termination by Company’s Shareholders. If the Chairman is removed from
the Board, as provided in Section 5.8 of the Company’s charter (or under any similar
future provision under the Company’s charter), then this Agreement shall immediately
terminate. For purposes of Section 8 of this Agreement, termination pursuant to this
subsection (g) shall be considered “termination with Cause.”

	7.	 	Termination Procedure.

	 	(a)	 	Notice of Termination. Any termination of this Agreement by the
Company or by the Chairman during the Term, except termination due to the Chairman’s
death pursuant to Section 6(a), shall be communicated by written Notice of Termination
to the other party hereto. For purposes of this Agreement, a “Notice of Termination”
shall mean a notice that states the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for such termination under the provision so stated. Any
Notice of Termination given by the Chairman shall be deemed a resignation by the
Chairman as Chairman of the Board and as a member of the Board; provided, however, that
the Board may, in its sole and absolute discretion, waive such resignation without
affecting the Chairman’s rights hereunder as a result of his giving such Notice of
Termination.
	 
	 	(b)	 	Date of Termination. “Date of Termination” shall mean (i) if the
Chairman shall die or become incapacitated (as contemplated by Section 6(b)), the date
of his death or Disability, and (ii) if this Agreement is terminated for any other
reason, the date on which a Notice of Termination is given or any later date (within
thirty (30) days after the giving of such Notice of Termination) set forth in such
Notice of Termination.

	8.	 	Payments Upon Termination.

	 	(a)	 	Disability; Death. If on or after the Effective Date this Agreement is
terminated as a result of the Chairman’s death pursuant to Section 6(a) or his
Disability pursuant to Section 6(b):

	 	(i)	 	all unvested stock options and unvested restricted stock
granted to the Chairman prior to the Date of Termination that would have vested
during the 90-day period following his death or Disability shall fully vest as
of the Date of Termination, and all other unvested stock options and unvested
restricted stock granted to the Chairman prior to the Date of Termination will
not vest and will be forfeited, returned to the Company and, at the Company’s
election, may be cancelled by the Company (with it being agreed and understood,
for avoidance of doubt, that, if the Chairman’s death or Disability occurs
prior to the Effective Date, none of the Restricted Stock that is granted and
issued under this Agreement will be or become vested and all of such Restricted
Stock will be forfeited, returned to the Company and, at the Company’s
election, may be cancelled by the Company);

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	 	(ii)	 	the Company shall reimburse the Chairman, pursuant to Section
5(c) hereof, or his estate, as the case may be, for reasonable expenses
incurred by the Chairman but not reimbursed by the Company prior to such
termination; and
	 
	 	(iii)	 	the Chairman shall be entitled to such other rights,
compensation and/or benefits as may be due to the Chairman in accordance with
the terms and provisions of any agreements, plans or programs of the Company,
including, without limitation, any bonus or other compensation that, pursuant
to the terms hereof or any other written agreement between the Company and the
Chairman, has been earned or declared, but not yet paid or delivered to the
Chairman, as of the Date of Termination (but shall no longer be entitled to any
benefits under this Agreement except for the termination payments specified
herein).

	 	(b)	 	Termination by Company Without Cause or Termination by the Chairman for
Good Reason. If after the Effective Date this Agreement is terminated by the
Company without Cause or if the Chairman terminates this Agreement for Good Reason:

	 	(i)	 	in the case of termination by the Company without Cause or
termination by the Chairman for Good Reason, all unvested stock options and
unvested restricted stock granted to the Chairman prior to the Date of
Termination that would have vested at any time in the 365 days following the
Date of Termination shall fully vest as of the Date of Termination. In either
event, all other unvested stock options and unvested restricted stock granted
to the Chairman prior to the Date of Termination will not vest and will be
forfeited, returned to the Company and, at the Company’s election, may be
cancelled by the Company (with it being agreed and understood, for avoidance of
doubt, that, if such a termination occurs prior to the Effective Date, none of
the Restricted Stock that is granted and issued under this Agreement will be or
become vested and all of such Restricted Stock will be forfeited, returned to
the Company and, at the Company’s election, may be cancelled by the Company);
	 
	 	(ii)	 	the Company shall reimburse the Chairman, pursuant to Section
5(c) hereof, for reasonable expenses incurred by the Chairman but not
reimbursed by the Company prior to such Termination; and
	 
	 	(iii)	 	the Chairman shall be entitled to such other rights,
compensation and/or benefits as may be due to the Chairman in accordance with
the terms and provisions of any agreements, plans or programs of the Company,
including, without limitation, any bonus or other compensation that, pursuant
to the terms hereof or any other written agreement between the Company and the
Chairman, has been earned or declared, but not yet paid or delivered to the
Chairman, as of the Date of Termination (but shall no longer be entitled to any
benefits under this Agreement except for the termination payments specified
herein).

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	 	(c)	 	Termination by the Company with Cause or By Chairman other than for Good
Reason. If this Agreement is terminated by the Company with Cause or if the
Chairman terminates this Agreement other than for Good Reason:

	 	(i)	 	the Company shall reimburse the Chairman, pursuant to Section
5(c) hereof, for reasonable expenses incurred by the Chairman but not
reimbursed by the Company prior to such termination, unless such termination
resulted from a misappropriation of Company funds;
	 
	 	(ii)	 	all unvested stock options and unvested restricted stock
granted to the Chairman prior to the Date of Termination that would have vested
in the calendar month when the Date of Termination occurs shall fully vest as
of the Date of Termination and all other unvested stock options and unvested
restricted stock granted to the Chairman prior to the Date of Termination will
not vest and will be forfeited, returned to the Company and, at the Company’s
election, may be cancelled by the Company; and
	 
	 	(iii)	 	the Chairman shall be entitled to such other rights,
compensation and/or benefits as may be due to the Chairman in accordance with
the terms and provisions of any agreements, plans or programs of the Company,
including, without limitation, any bonus or other compensation that, pursuant
to the terms hereof or any other written agreement between the Company and the
Chairman, has been earned or declared, but not yet paid or delivered to the
Chairman, as of the Date of Termination (but shall no longer be entitled to any
benefits under this Agreement except for the termination payments specified
herein).

	 	(d)	 	Tax Compliance Delay in Payment. If the Company reasonably determines
that any payment or benefit due under this Section 8, or any other amount that may
become due to Chairman after termination of this Agreement, is subject to Section 409A
of the Code, and that Chairman is a “specified employee,” as defined in Code Section
409A, upon termination of this Agreement for any reason other than death, no amount may
be paid to the Chairman earlier than six months after the date of termination of this
Agreement, and payment shall be made, or commence to be made, as the case may be, on
the date that is six months and one day after termination of this Agreement, together
with interest at the rate of five percent (5%) per annum beginning with the date one
day after termination of this Agreement until the date of payment.
	 
	 	(e)	 	Execution of a Release. Notwithstanding anything contained herein to
the contrary, the Chairman’s right to receive any termination payments hereunder and to
receive any other benefit or consideration upon the termination of this Agreement
(including, without limitation, the vesting of any unvested stock options or unvested
restricted stock granted to the Chairman), and the Company’s obligation to make such
termination payments or to provide any such other benefit or consideration, is subject
to the execution by the Chairman or his legal representative of a release substantially
in the form of Exhibit B hereto, the
delivery of such release to the Company and the lapse (without revocation) of any
revocation period provided for therein.

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	 	(f)	 	Cash in Lieu of Shares. The Company shall have the right to elect, by
giving written notice to such effect (a “Redemption Notice”) to the Chairman (or his
legal representative) within twenty (20) days following the Date of Termination to
redeem any shares of Restricted Stock vesting specifically as a result of the
termination of the Chairman pursuant to this Section 8 (such shares of Restricted Stock
that the Company has elected to redeem are hereinafter referred to as the “Redeemed
Shares”) and by, within ten (10) days after the date the Redemption Notice is so given
to the Chairman (or his legal representative), making payment to the Chairman (or his
legal representative) in the amount equal to the value of the Redeemed Shares as
determined below, and upon receipt of such payment, the Chairman shall transfer and
return to the Company the Redeemed Shares (including the certificates, if any,
representing the Redeemed Shares). For purposes of the foregoing, the Redeemed Shares
shall be valued at the average closing price of the Company’s common stock on the
principal stock exchanges on which such common stock is then listed and traded during
the ten (10) trading days prior to the Date of Termination.
	 
	 	(g)	 	Expiration of This Agreement. For the avoidance of doubt, the parties
confirm that, upon the expiration of the Term, the non-renewal of this Agreement or the
termination of Chairman’s retention hereunder for any reason or for no reason shall not
be considered a termination by Company without Cause or termination by the Chairman for
Good Reason, and the Chairman shall not be entitled to any termination payments as a
consequence thereof.

	9.	 	Repayment. The Chairman acknowledges and agrees that the bonuses and other
incentive-based or equity-based compensation received by him from the Company with respect to
and during the time of his service as Chief Executive Officer, and any profits realized from
the sale of securities of the Company, are subject to the forfeiture and clawback requirements
set forth in the Sarbanes-Oxley Act of 2002 and other applicable laws, rules and regulations,
under the circumstances set forth therein. If any such forfeiture or clawback is required
pursuant to the Sarbanes-Oxley Act of 2002 or other applicable law, rule or regulation, then
within thirty (30) days after notice thereof from the Company, the Chairman shall pay to the
Company the amount then required by any applicable order, directive or action of the
Securities and Exchange Commission, by any court order, judgment or settlement agreement or
otherwise required by any applicable law, rules and regulations to be paid or forfeited.

	10.	 	Chairman’s Successors. No rights or obligations of the Chairman under this Agreement
may be assigned or transferred by the Chairman; provided however, that any cash payments
payable to the Chairman hereunder or any stock options or restricted stock may be assigned by
the Chairman to any third party, including transfer or by will or the laws of descent and
distribution. Upon the Chairman’s death, this Agreement and all rights of the Chairman
hereunder shall inure to the benefit of and be enforceable by the Chairman’s beneficiary or
beneficiaries, personal or legal representatives, or estate, to the extent any such person
succeeds to the Chairman’s interests under this Agreement. The
Chairman shall be entitled to select and change a beneficiary or beneficiaries to receive
any benefit or compensation payable hereunder at any time or following the Chairman’s death
by giving the Company written notice thereof. In the event of the Chairman’s death or a
judicial determination of his incompetence, references in this Agreement to the Chairman
shall be deemed, where appropriate, to refer to his beneficiary(ies), estate or other legal
representative(s). If the Chairman should die following his Date of Termination while any
amounts would still be payable to him hereunder if he had continued to live, all such
amounts unless otherwise provided herein shall be paid in accordance with the terms of this
Agreement to such person or persons so appointed in writing by the Chairman, or otherwise to
his legal representatives or estate.

11

 

	11.	 	Notice. All notices or other communications that are required or permitted hereunder
shall be in writing and sufficient if delivered personally, or sent by nationally-recognized,
overnight courier or by registered or certified mail, return receipt requested and postage
prepaid addressed as follows:

	 	 	 
	To the Company:
	 	Equity One, Inc.

	 	 	1600 NE Miami Gardens Drive

	 	 	Miami, Florida 33179

	 
	 	 	Attention: General Counsel

	 	 	 

	 	 	With copies to:

	 	 	 

	 	 	The Chair of the Compensation Committee

	 	 	 

	 	 	and to

	 	 	 

	 	 	Herbert F. Kozlov, Esq.

	 	 	Reed Smith LLP

	 	 	599 Lexington Avenue

	 	 	New York, New York 10022

	 	 	 
	To Chairman:
	 	Mr. Chaim Katzman

	 	 	Equity One, Inc.

	 	 	1600 NE Miami Gardens Drive

	 	 	Miami, Florida 33179

	 	 	 

	 	 	With a copy to:

	 	 	 

	 	 	Alan D. Axelrod, Esq.

	 	 	Bilzin Sumberg Baena Price & Axelrod LLP

	 	 	Suite 2500

	 	 	200 South Biscayne Boulevard

	 	 	Miami, Florida 33131

	 	 	(until December 31, 2010)

	 	 	 

	 	 	-or-

	 	 	 

	 	 	1450 Brickell Avenue

	 	 	Miami, Florida 33131

	 	 	(on and after the Effective Date)

12

 

or to such other address as any party may have furnished to the others in writing in accordance
herewith. All such notices and other communications shall be deemed to have been received (a) in
the case of personal delivery, on the date of such delivery, (b) in the case of delivery by
nationally-recognized, overnight courier, on the business day following dispatch and (c) in the
case of mailing, on the third business day following such mailing.

	12.	 	Attorneys’ Fees. The Company shall reimburse the Chairman for the reasonable
attorneys’ fees and costs incurred by the Chairman in connection with the review, negotiation
and execution of this Agreement. If either party is required to seek legal counsel to enforce
the terms and provisions of this Agreement, the prevailing party in any action shall be
entitled to recover reasonable attorneys’ and paralegals’ fees and costs (including on
appeal).
	 
	13.	 	Miscellaneous and Waiver of Jury Trial. No provisions of this Agreement may be
amended, modified, or waived unless such amendment or modification is agreed to in writing
signed by the Chairman and by a duly authorized officer of the Company, and such waiver is set
forth in writing and signed by the party to be charged. No waiver by either party hereto at
any time of any breach by the other party hereto of any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent time. No
agreements or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party that are not set forth expressly in this
Agreement. The respective rights and obligations of the parties hereunder of this Agreement
shall survive the termination of this Agreement to the extent necessary for the intended
preservation of such rights and obligations. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of Florida without
regard to its conflicts of law principles. EACH OF THE PARTIES HERETO EXPRESSLY WAIVES ITS OR
HIS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY SUIT, LITIGATION OR OTHER JUDICIAL PROCEEDING
REGARDING THIS AGREEMENT OR ANY DISPUTE HEREUNDER OR RELATING HERETO.
	 
	14.	 	Validity. The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.
	 
	15.	 	Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will constitute one and the
same instrument.

13

 

	16.	 	Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto in respect of the specific subject matter contained herein and supersede all prior
agreements, promises, covenants, arrangements, communications, representations or warranties,
whether oral or written, by any officer, director, employee or representative of
either party hereto in respect of such specific subject matter. Any prior agreement of the
parties hereto in respect of the specific subject matter contained herein is hereby
terminated and canceled. For purposes of clarification and avoidance of any doubt, (a)
notwithstanding anything contained herein to the contrary unless otherwise specifically
provided herein, the terms and conditions of the Chairman’s retention by the Company and
termination (including payments upon termination) through December 31, 2010 and prior to the
Effective Date are and shall continue to be governed by the terms and conditions set forth
in the Prior Chairman Compensation Agreement, but thereafter the terms and conditions of the
Chairman’s retention by the Company and termination (including payments upon termination)
shall be governed by the terms and conditions of this Agreement, which terms and conditions
shall, from and after the Effective Date, supersede and control and (b) notwithstanding
anything contained herein to the contrary, if the Prior Chairman Compensation Agreement is
terminated on or prior to December 31, 2010 in accordance with the terms thereof (other than
as a result or consequence of the expiration of the term thereof), (i) the Chairman’s
entitlement to any payment on account of or with respect to such termination shall be
governed solely by the terms of the Prior Chairman Compensation Agreement and (ii) the
Company shall have no obligations or liabilities to the Chairman under or pursuant to this
Agreement and, promptly following any such termination of the Prior Chairman Compensation
Agreement, the Chairman shall return and surrender to the Company all of the shares of
Restricted Stock granted to the Chairman pursuant to Section 5(b) above and the Restricted
Stock Agreement referred to in Section 5(b) above shall be terminated. For avoidance of
doubt, the parties confirm that neither the expiration of the Term (as defined in the Prior
Chairman Compensation Agreement) nor the non-renewal of the Prior Chairman Compensation
Agreement nor the termination of Chairman’s retention thereunder as a consequence of the
expiration of such Term (subject, however, to the Chairman being retained by the Company
pursuant to the terms of this Agreement) shall be considered, for the purposes of the Prior
Chairman Compensation Agreement, to be a termination by the Company without Cause or
termination by the Chairman for Good Reason, and the Chairman shall not be entitled to any
termination payments as a consequence thereof.
	 
	17.	 	Withholding. All payments hereunder shall be subject to any required withholding of
Federal, state and local taxes pursuant to any applicable law or regulation.
	 
	18.	 	Noncontravention. The Company represents to the Chairman that the Company is not
prevented from entering into or performing this Agreement by the terms of any law, order, rule
or regulation, its by-laws or certificate of incorporation or by any agreement to which it is
a party, other than that that would not have a material and adverse effect on the Company’s
ability to enter into or perform this Agreement. The Chairman represents to the Company that
he is not a party to any agreement that would preclude him from entering into or performing
this Agreement.
	 
	19.	 	Section Headings. The section headings in this Agreement are for convenience of
reference only, and they form no part of this Agreement and shall not affect its
interpretation.

[The remainder of this page is intentionally left blank]

14

 

The parties hereto have executed this Agreement effective as provided above.

	 	 	 	 	 
	 	EQUITY ONE, INC.

 	 
	 	By:  	/s/ Peter Linneman
 	 
	 	 	Name:  	Peter Linneman 	 
	 	 	Title:  	Chair, Compensation Committee of the Board of Directors of Equity One, Inc. 	 
	 

	 	 	 	 	 
	 	 	 
	 	/s/ Chaim Katzman
 	 
	 	CHAIM KATZMAN 	 
	 	 	 
	 

 15 

 

EXHIBIT A

Form of Restricted Stock Agreement

 

 

EXHIBIT B

Form of Releaseexv10w4

Exhibit 10.4

FIRST AMENDMENT TO 

CHAIRMAN COMPENSATION AGREEMENT

AND

RESTRICTED STOCK AGREEMENT

     This FIRST AMENDMENT to CHAIRMAN COMPENSATION AGREEMENT and RESTRICTED STOCK
AGREEMENT (this “Amendment”), dated as of August 9, 2010, by and between Equity One,
Inc., a Maryland corporation (the “Company”), and Chaim Katzman (the “Chairman”).

W H E R E A S:

     A. The Company and the Chairman are the parties to that certain Chairman
Compensation Agreement and that certain Restricted Stock Agreement, each dated as of
January 1, 2007 (such agreements being collectively referred to herein as the “Old
Agreements”), each providing for, among other things, an award (the “Award”) of
300,000 shares of restricted stock as long-term compensation to the Chairman.

     B. On the date hereof, the Company and the Chairman are entering into a new
Chairman Compensation Agreement and a new Restricted Stock Agreement (collectively,
the “New Agreements”), each of which shall be effective as of January 1, 2011.

     C. In consideration of the execution of the New Agreements, the parties desire
to amend the vesting period of the Award as more particularly set forth herein.

     NOW, THEREFORE, in consideration of the execution and delivery of the New
Agreements and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:

     1. Amendments. The vesting schedule of the Award as provided in
Section 5(b) of the old Chairman Compensation Agreement and Section 2(a) of the old
Restricted Stock Agreement is hereby amended as follows:

	 	 	 	 	 
	Number of Shares
	 	Vesting Date

	 	 	 	 	 

	 	75,000	 	 	December 31, 2007

	 	 	 	 	 

	 	75,000	 	 	December 31, 2008

	 	 	 	 	 

	 	75,000	 	 	December 31, 2009

	 	 	 	 	 

	 	43,750	 	 	August 9, 2010

	 	 	 	 	 

	 	31,250	 	 	652 shares on the first day of each calendar month
beginning February 2011 and ending December 2014 and 606
shares on December 31, 2014

     2. Effective Date. This Amendment shall be effective upon its
execution by the Company and the Chairman.

 

 

     3. Counterparts. This Amendment may be executed in counterparts and by
different parties hereto in separate counterparts, each of which, when so executed
and delivered, shall be deemed to be an original and all of which, when taken
together, shall constitute one and the same instrument.

     4. No Other Modification. Except as otherwise expressly modified by
the terms and provisions of this Amendment, each of the Old Agreements shall remain
in full force and effect and is hereby in all respects confirmed and ratified by the
parties hereto.

     5. References to Agreement. From and after the effective date hereof,
each reference in either Old Agreement to “this Agreement,” “hereto,” “hereunder” or
words of like import, and all references to either Old Agreement in any and all
other agreements, instruments, documents, notes, certificates and other writings of
every kind and nature shall be deemed to mean such Old Agreement as modified and
amended by this Amendment.

[Signatures to follow]

2

 

     IN WITNESS WHEREOF, the Chairman and the Company have executed this First Amendment to
Chairman Compensation Agreement and Restricted Stock Agreement as of the date first written above.

	 	 	 	 	 
	 	THE COMPANY:

EQUITY ONE, INC., a Maryland corporation

 	 
	 	By:  	/s/ Peter Linneman
 	 
	 	 	Name:  	Peter Linneman 	 
	 	 	Title:  	Chair, Compensation Committee of the Board of Directors of Equity One, Inc. 	 
	 

	 	 	 	 	 
	 	CHAIRMAN:

 	 
	 	/s/ Chaim Katzman
 	 
	 	Chaim Katzman 	 
	 	 	 
	 

3

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