Document:

EX-10(T)

 

Exhibit 10(t)

Second Amendment to 

Master Accounts Receivable Purchase Agreement 

     This Second Amendment to Master Accounts Receivable Purchase Agreement (herein, the
“Amendment”) is entered into as of November 30, 2007, among LaSalle Bank National Association (the
“Bank”), The Scotts Company LLC (the “Company”) and The Scotts Miracle-Gro Company (the “Parent”).

Preliminary Statements

     A. Reference is hereby made to that certain Master Accounts Receivable Purchase Agreement
dated as of April 11, 2007 (as amended, the “Purchase Agreement”), among the Company, the Parent
and the Bank.

     B. The Company has requested that the Bank amend the definition of “Agreement Amount” and
certain other provisions set forth in the Purchase Agreement, and the Bank is willing to do so
under the terms and conditions set forth in this Amendment.

     C. Capitalized terms used but not otherwise defined herein shall have the same meaning herein
as in the Purchase Agreement.

     Now, Therefore, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

Section 1. Amendment to Purchase Agreement.

     Subject to the satisfaction of the conditions precedent set forth in Section 2 below, the
Purchase Agreement shall be and hereby is amended as follows:

     1.1. The defined term “Agreement Amount” appearing in Section 1 of the Purchase
Agreement shall be amended and restated in its entirety to read as follows:

     “Agreement Amount” means the maximum aggregate Funded Amounts
of all Purchased Receivables as set forth below during the relevant
time periods, as such amount may be reduced from time to time
pursuant to the terms of Section 4.3(d) hereof:

	 	 	 	 	 
	Period	 	Amount
	12/1/07—1/8/08
	 	$	10,000,000	 
	 
	 	 	 	 
	1/9/08—1/22/08
	 	$	20,000,000	 
	 
	 	 	 	 
	1/23/08—2/5/08
	 	$	40,000,000	 
	 
	 	 	 	 
	2/6/08—2/19/08
	 	$	95,000,000	 
	 
	 	 	 	 
	2/20/08—3/4/08
	 	$	130,000,000	 

 

 

	 	 	 	 	 
	Period	 	Amount
	3/5/08—3/18/08
	 	$	170,000,000	 
	 
	 	 	 	 
	3/19/08—4/1/08
	 	$	250,000,000	 
	 
	 	 	 	 
	4/2/08—4/10/08
	 	$	300,000,000	 

     1.2. Section 4.3(d) of the Purchase Agreement shall be amended by deleting the term
“month(s)” appearing therein and replacing it with the term “period(s)”.

Section 2. Conditions Precedent.

     The effectiveness of this Amendment is subject to the satisfaction of all of the following
conditions precedent:

     2.1. The Company, the Parent and the Bank shall have executed and delivered this
Amendment.

     2.2. The Bank shall have received copies (executed or certified, as may be appropriate)
of all legal documents or proceedings taken in connection with the execution and delivery of
this Amendment and the other documents referred to above to the extent the Bank or its
counsel may reasonably request.

Section 3. Representations.

     In order to induce the Bank to execute and deliver this Amendment, the Company hereby
represents to the Bank that as of the date hereof, the representations and warranties set forth in
the Purchase Agreement are and shall be and remain true and correct and the Company is in
compliance with the terms and conditions of the Purchase Agreement and no Termination Event or
event which, with notice or lapse of time or both, would constitute a Termination Event thereunder
exists or shall result after giving effect to this Amendment.

Section 4. Miscellaneous.

     4.1. Except as specifically amended herein, the Purchase Agreement shall continue in full
force and effect in accordance with its original terms. Reference to this specific Amendment need
not be made in the Purchase Agreement or any other instrument or document executed in connection
therewith, or in any certificate, letter or communication issued or made pursuant to or with
respect to any of the foregoing, any reference in any of such items to the Purchase Agreement being
sufficient to refer to the Purchase Agreement as amended hereby.

     4.2. The Company agrees to pay on demand all costs and expenses of or incurred by the Bank in
connection with the negotiation, preparation, execution and delivery of this Amendment and the
other instruments and documents to be executed and delivered in connection herewith, including the
reasonable fees and expenses of counsel for the Bank.

-2-

 

     4.3. This Amendment may be executed in any number of counterparts, and by the different
parties on different counterpart signature pages, all of which taken together shall constitute one
and the same agreement. Any of the parties hereto may execute this Amendment by signing any such
counterpart and each of such counterparts shall for all purposes be deemed to be an original. This
Amendment shall be governed by the internal laws of the State of New York.

[Signature Page to Follow]

-3-

 

     This Second Amendment to Purchase Agreement is entered into as of the date and year first
above written.

	 	 	 	 	 	 	 	 	 
	 	 	The Scotts Company LLC	 	 
	 
	 
	 	By	 	 	 	 	 	 
	 

	 	
	 	Name

Title
	 	/s/ Scott M. Haefke
 

VP, Treasurer
 

	 	  
	 
	 	 	 	 	 	 	 	 
	 	 	The Scotts Miracle-Gro Company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 

	 	 	 	Name

Title
	 	/s/ David C. Evans
 

CFO
 

	 	  
	 
	 	 	 	 	 	 	 	 
	Accepted and agreed to.
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LaSalle Bank National Association	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 

	 	 	 	Name	 	/s/ David L. Catherall	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title	 	Senior Vice President
	 	 	 	 	 	 	 

S-1EX-10.1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of February 5, 2008
(the “Effective Date”), by and among SUN COMMUNITIES, INC., a Maryland corporation (the
“REIT”), SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP, a Michigan limited partnership
(“SCOLP”) and JOHN B. MCLAREN (the “Executive”). As used herein, “Company”
shall refer to the REIT and SCOLP together.

W I T N E S S E T H:

     WHEREAS, SCOLP operates the business of the REIT;

     WHEREAS, the REIT is the sole general partner of SCOLP;

     WHEREAS, Executive has historically provided services not only to the REIT, but also to SCOLP;
and

     WHEREAS, the Company desires to continue the employment of the Executive, and the Executive
desires to continue to be employed by the Company, on the terms and subject to the conditions set
forth below.

     NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement and other
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
parties agree as follows:

     1. Employment.

     (a) The Company agrees to employ the Executive and the Executive accepts the
employment, on the terms and subject to the conditions set forth below. During the Term
(defined below), the Executive shall serve as Executive Vice President and Chief Operating
Officer of the REIT, and shall do and perform diligently all such services, acts and things
as are customarily done and performed by such officers of companies in similar business and
in size to the REIT, together with such other duties as may reasonably be requested from
time to time by the REIT’s Chief Executive Officer or the Board of Directors of the REIT
(the “Board”), which duties shall be consistent with the Executive’s positions as
set forth above.

     (b) For service as an officer and employee of the Company, the Executive shall be
entitled to the full protection of the applicable indemnification provisions of the Articles
of Incorporation and Bylaws of the REIT, as they may be amended from time to time.

     2. Term of Employment.

     (a) Subject to the provisions for termination provided below, the term of the
Executive’s employment under this Agreement shall commence on the Effective Date and shall
continue thereafter until December 31, 2010 (the “Initial Term”); provided, however,
that following the expiration of the Initial Term, the term of this Agreement shall be
automatically extended for successive terms of one (1) year each thereafter (each a
“Renewal Term”), unless either party notifies the other party in writing of its
desire to terminate this Agreement at least ninety (90) days before the end of the Initial
Term or the Renewal Term then in effect. The Initial Term and each Renewal Term are

 

 

collectively referred to as the “Term.”

     (b) Executive acknowledges and agrees that Executive is an “at-will” employee and that
Executive’s employment may be terminated, with or without cause, at the option of Executive
or the REIT.

     3. Devotion to the Company’s Business. The Executive shall devote his best efforts,
knowledge, skill, and his entire productive time, ability and attention to the business of the
Company during the term of this Agreement.

     4. Compensation.

     (a) During the Term, the Company shall pay or provide, as the case may be, to the
Executive the compensation and other benefits and rights set forth in paragraphs 4, 5 and 6
of this Agreement.

     (b) Base Compensation. As compensation for the services to be performed
hereunder, the Company shall pay to the Executive, during his employment hereunder, an
annual base salary (the “Base Salary”) of Two Hundred Sixty-Five Thousand Dollars
($265,000.00) payable in accordance with the Company’s usual pay practices (including tax
withholding), but in no event less frequently than monthly, but subject to adjustment
pursuant to Section 4(c) below.

     (c) COLA Adjustment. At the beginning of each calendar year of this Agreement,
commencing with January 1, 2009 (each an “Adjustment Date”), Executive’s Base Salary
shall be increased in accordance with the increase, if any, in the cost of living during the
preceding one year as determined by the percentage increase in the Consumers Price Index-All
Urban Consumers (U.S. City Average/all items) published by the Bureau of Labor Statistics of
the U.S. Department of Labor (the “Index”). The average Index for years 2006 and
2007 shall be considered the “Base.” The Base Salary for the calendar year
following each Adjustment Date shall be the Base Salary specified in Paragraph 4(b)
increased by the percentage increase, if any, in the Index for the calendar year immediately
preceding the Adjustment Date over the Base. In the event the Index shall cease to be
published or the formula underlying the Index shall change materially from the formula used
for the Index as of the date hereof, then there shall be substituted for the Index such
other index of similar nature as is then generally recognized and accepted. In no event
shall the Base Salary during each adjusted calendar year be less than that paid during the
preceding year of this Agreement.

     (d) Bonus. Executive will be eligible to receive a discretionary bonus for each
calendar year during the Term (the “Bonus”). The amount of any Bonus shall be
determined in the sole discretion of the Compensation Committee of the Board and shall be an
amount of up to 100% of the Base Salary for each calendar year that the Executive is
employed under this Agreement (“Bonus Year”), which Bonus shall be determined and calculated
with respect to each Bonus Year as follows: (i) the Executive shall receive a Bonus in the
amount of up to 50% of the then current Base Salary in the sole discretion of the
Compensation Committee based on a written plan generated by the Compensation Committee of
the Board by March 15 of each year; and (ii) up to an additional 50% the then current Base
Salary may be awarded to the Executive in the sole discretion of the Compensation Committee
based on any other criteria. The determination of the Bonus shall be made by the
Compensation Committee of the Board no later than March 7 of the following calendar year.

     (e) Disability. During any period that the Executive fails to perform his

2

 

duties hereunder as a result of incapacity due to physical or mental illness (the “Disability
Period”), the Executive shall continue to receive his full Base Salary, Bonus and other
benefits at the rate in effect for such period until his employment is terminated by the
Company pursuant to paragraph 7(a)(iii) below; provided, however, that payments so made to
the Executive during the Disability Period shall be reduced by the sum of the amounts, if
any, which were paid to the Executive at or prior to the time of any such payment under
disability benefit plans of the Company.

     (f) Restricted Stock. On the Effective Date, the REIT shall grant and issue to
Executive (the “Restricted Stock Award”) 10,000 shares of the REIT’s common stock
(the “Shares”). The grant of the Restricted Stock Award shall be subject to the
terms and conditions contained in the REIT’s standard Restricted Stock Award Agreement (the
“Restricted Stock Award Agreement”) and all applicable terms and conditions of the
REIT’s Amended and Restated 1993 Stock Option Plan. In addition to the foregoing, the
Restricted Stock Award shall vest as follows: (i) thirty-five percent (35%) of the Shares
(rounded down to the nearest whole number) shall vest on the fourth anniversary of the
Effective Date; (ii) thirty-five percent (35%) of the Shares (rounded down to the nearest
whole number) shall vest on the fifth anniversary of the Effective Date; (iii) twenty
percent (20%) of the Shares (rounded down to the nearest whole number) shall vest on the
sixth anniversary of the Effective Date; (iv) five percent (5%) of the Shares (rounded down
to the nearest whole number) shall vest on the seventh anniversary of the Effective Date;
and (v) the remainder of the Shares shall vest on the tenth anniversary of the Effective
Date. The grant of the Restricted Stock Award is expressly conditioned upon the Executive’s
execution of the Restricted Stock Award Agreement.

     5. Benefits.

     (a) Insurance. The Company shall provide to the Executive life, medical and
hospitalization insurance for himself, his spouse and eligible family members as may be
determined by the Board to be consistent with the Company’s standard policies.

     (b) Benefit Plans. The Executive, at his election, may participate, during his
employment hereunder, in all retirement plans, 401(K) plans and other benefit plans of the
Company generally available from time to time to other executive employees of the Company
and for which the Executive qualifies under the terms of the plans (and nothing in this
Agreement shall or shall be deemed to in any way affect the Executive’s right and benefits
under any such plan except as expressly provided herein). At the discretion of the
Compensation Committee of the Board, the Executive may also be entitled to participate in
any equity, stock option or other employee benefit plan that is generally available to
senior executives of the Company. In addition to the foregoing, the Executive’s
participation in and benefits under any such plan shall be on the terms and subject to the
conditions specified in the governing document of the particular plan. Nothing contained in
this Agreement shall be construed to create any obligation on the part of the Company to
establish any such plan or to maintain the effectiveness of any such plan which may be in
effect from time to time.

     (c) Annual Vacation. The Executive shall be entitled to four (4) weeks
vacation time each year, without loss of compensation. The Executive shall not take more
than fourteen (14) consecutive calendar days of vacation without the prior approval of the
REIT’s Chief Executive Officer. Unless otherwise approved by the Chief Executive Officer of
the REIT, in the event that the Executive does not take the total amount of vacation time
authorized under this Agreement during any calendar year, such vacation time shall not
accrue and the Executive shall forfeit any such unused vacation time. In the event this
Agreement is terminated for any reason whatsoever, the Executive

3

 

shall not be entitled to receive any payment for unused vacation time.

     6. Reimbursement of Business Expenses. The Company shall reimburse the Executive for
travel, entertainment and other expenses reasonably and necessarily incurred by the Executive in
the performance of his duties under this Agreement. The Executive shall furnish such documentation
with respect to reimbursement to be paid hereunder as the Company shall reasonably request.

     7. Termination of Employment.

     (a) The Executive’s employment under this Agreement may be terminated:

          (i) by either the Executive or the REIT at any time for any reason whatsoever
or for no reason upon not less than sixty (60) days written notice;

          (ii) by the REIT at any time for “cause” as defined below, without prior
notice;

          (iii) by the REIT upon the Executive’s “permanent disability” (as defined
below) upon not less than thirty (30) days written notice; and

          (iv) upon the Executive’s death.

     (b) For purposes hereof, for “cause” shall mean: (i) a material breach of any
provision of this Agreement by Executive (if the breach is curable, it will constitute cause
only if it continues uncured for a period of twenty (20) days after Executive’s receipt of
written notice of such breach from the Company); (ii) Executive’s failure or refusal, in any
material manner, to perform all lawful services required of him pursuant to this Agreement,
which failure or refusal continues for more than twenty (20) days after Executive’s receipt
of written notice of such deficiency; (iii) Executive’s commission of fraud, embezzlement or
theft, or a crime constituting moral turpitude, in any case, whether or not involving
Company, that in the reasonable good faith judgment of the REIT, renders Executive’s
continued employment harmful to the Company; (iv) Executive’s misappropriation of Company
assets or property, including, without limitation, obtaining reimbursement through
fraudulent vouchers or expense reports; or (v) Executive’s conviction or the entry of a plea
of guilty or no contest by Executive with respect to any felony or other crime that, in the
reasonable good faith judgment of the REIT, adversely affects the Company or its reputation
or business.

     (c) For purposes hereof, the Executive’s “permanent disability” shall be deemed
to have occurred if Executive has become unable to perform the essential functions and
responsibilities of his position with reasonable accommodation, as required under the
Americans with Disabilities Act, as the same has and may be amended (the “ADA”), by
virtue of a disability (as defined under the ADA).

     8. Compensation Upon Termination or Disability.

     (a) In the event that the REIT terminates the Executive’s employment under this
Agreement without “cause” pursuant to paragraph 7(a)(i), (i) the Executive shall be entitled
to any accrued and unpaid Base Salary, Bonus and benefits through the effective date of such
termination, prorated for the number of days actually employed in the then current calendar
year, which shall be paid by the Company to the Executive within thirty (30) days of the
effective date of such termination (or such later date as may be required

4

 

in order to determine the amount of any Bonus due to the Executive), and (ii) subject to the
Executive’s execution of a general release of claims in a form satisfactory to the Company,
the Company shall pay the Executive monthly an amount equal to one-twelfth (1/12) of the
Base Salary (at the rate that would otherwise have been payable under this Agreement) for a
period of up to twelve (12) months if the Executive fully complies with paragraph 12 of this
Agreement (the “Severance Payment”). Notwithstanding the foregoing, the Company, in
its sole discretion, may elect to make the Severance Payment to the Executive in one lump
sum due within thirty (30) days of the Executive’s termination of employment and the
Severance Payment shall not be due Executive if Executive is entitled to Change in Control
Benefits (as defined in paragraph 10 below).

     (b) In the event of termination of the Executive’s employment under this Agreement for
“cause” or if the Executive voluntarily terminates his employment hereunder, the Executive
shall be entitled to no further compensation or other benefits under this Agreement, except
only as to any accrued and unpaid Base Salary and benefits through the effective date of
such termination, prorated for the number of days actually employed in the then current
calendar year.

     (c) In the event of termination of the Executive’s employment under this Agreement due
to the Executive’s permanent disability or death, (i) the Executive (or his successors and
assigns in the event of his death) shall be entitled to any accrued and unpaid Base Salary,
Bonus and benefits through the effective date of such termination, prorated for the number
of days actually employed in the then current calendar year, which shall be paid by the
Company to the Executive or his successors and assigns, as appropriate, within thirty (30)
days of the effective date of such termination, and (ii) the Company shall pay the Executive
monthly an amount equal to one-twelfth (1/12) of the Base Salary (at the rate that would
otherwise have been payable under this Agreement) for a period of up to twelve (12) months
if the Executive fully complies with paragraph 12 of this Agreement (the “Disability
Payment”); provided, however, that payments so made to the Executive shall be reduced by
the sum of the amounts, if any, which: (i) were paid to the Executive at or prior to the
time of any such payment under any death or disability benefit plans of the Company, and
(ii) did not previously reduce the Base Salary, Bonus and other benefits due the Executive
under paragraph 4(e) of this Agreement. Notwithstanding the foregoing, the Company, in its
sole discretion, may elect to make the Disability Payment to the Executive in one lump sum
due within thirty (30) days of the Executive’s termination of employment. The Executive
agrees to cooperate in any reasonable requirement to undertake a medical physical
examination as may be reasonably requested by an insurance carrier in the event that the
Company decides to incur additional death or disability insurance coverage on the Executive
in order to cover any amount of the Disability Payment that may become due.

     (d) Notwithstanding anything to the contrary in this paragraph 8, the Company’s
obligation to pay, and the Executive’s right to receive, any compensation under this
paragraph 8, including, without limitation, the Severance Payment and the Disability
Payment, shall terminate upon the Executive’s breach of any provision of paragraph 12
hereof. In addition, the Executive shall promptly forfeit any compensation received from
the Company under this paragraph 8, including, without limitation, the Severance Payment and
the Disability Payment, upon the Executive’s breach of any provision of paragraph 12 hereof.

     9. Resignation of Executive. Upon any termination of the Executive’s employment under
this Agreement, the Executive shall be deemed to have resigned from any and all offices and
directorships held by the Executive in the Company and/or any of the Affiliates (as defined below).

5

 

     10. Effect of Change in Control.

     (a) The Company or its successor shall pay the Executive the Change in Control Benefits (as
defined below) if there has been a Change in Control (as defined below) and any of the
following events has occurred (each a “Triggering Event”): (i) the Executive’s
employment under this Agreement is terminated by the Company or its successor in accordance
with paragraph 7(a)(i) at any time within twenty-four (24) months after the Change in
Control, (ii) upon a Change in Control under paragraph 10(f)(ii), the Company or its
successor does not expressly assume all of the terms and conditions of this Agreement, or
(iii) there are less than eighteen (18) months remaining under the Initial Term of this
Agreement (without regard to the last clause of Paragraph 2 hereof).

     (b) For purposes of this Agreement, the “Change in Control Benefits” shall mean
the following benefits:

     (i) A cash payment equal to (I) two and 99/100 (2.99) times the Base Salary in
effect on the date of such Change in Control, less (II) any amounts paid to
Executive under this Agreement following a Change in Control, but prior to the
occurrence of a Triggering Event, payable within sixty (60) days of the Change in
Control or, in the event that the cessation of Executive’s employment hereunder
triggers the Change in Control Benefits, payable within thirty (30) days after such
cessation of employment; and

     (ii) Continued receipt of all compensation and benefits set forth in paragraphs
5(a) and 5(b) of this Agreement, until the earlier of (I) one year following the
Change in Control (subject to the Executive’s COBRA rights) or (II) the commencement
of comparable coverage from another employer. The provision of any one benefit by
another employer shall not preclude the Executive from continuing participation in
Company benefit programs provided under this paragraph 10(b)(ii) that are not
provided by the subsequent employer. The Executive shall promptly notify the
Company upon receipt of benefits from a new employer comparable to any benefit
provided under this paragraph 10(b)(ii).

     (c) Notwithstanding anything to the contrary herein, (i) in the event that the
Executive’s employment under this Agreement is terminated by the Company or its successor in
accordance with paragraph 7(a)(i) within sixty (60) days prior to a Change in Control, such
termination shall be deemed to have been made in connection with the Change in Control and
the Executive shall be entitled to the Change in Control Benefits.

     (d) The Change in Control Benefits shall be in addition to the acceleration of the
vesting of, and the extension of the time for exercise of, stock options as a result of the
Change in Control.

     (e) Notwithstanding anything to the contrary contained herein, in the event it shall be
determined that any compensation payment or distribution by the Company to or for the
benefit of the Executive would be subject to the excise tax imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended (the “Code”), the Change in Control
Benefits will be reduced to the extent necessary so that no excise tax will be imposed, but
only if to do so would result in the Executive retaining a larger amount, on an after-tax
basis, taking into account the excise and income taxes imposed on all payments made to the
Executive hereunder.

6

 

     (f) For purposes of this Agreement, a “Change in Control” shall be deemed to
have occurred upon the closing of any of the following transactions:

     (i) if any person or group of persons acting together (other than (a) the
Company or any person (I) who as of the date hereof was a director or officer of the
REIT, or (II) whose shares of Common Stock of the REIT are treated as “beneficially
owned” by any such director or officer, or (b) any institutional investor (filing
reports under Section 13(g) rather than 13(d) of the Securities Exchange Act of
1934, as amended, including any employee benefit plan or employee benefit trust
sponsored by the Company)), becomes a beneficial owner, directly or indirectly, of
securities of the REIT representing fifty percent (50%) or more of either the
then-outstanding Common Stock of the REIT or the combined voting power of the REIT
then-outstanding voting securities (other than as a result of an acquisition of
securities directly from the REIT);

     (ii) if the Company sells all or substantially all of the Company’s assets to
any person (other than a wholly-owned subsidiary of the Company formed for the
purpose of changing the Company’s corporate domicile);

     (iii) if the Company merges or consolidates with another person as a result of
which the shareholders of the REIT immediately prior to such merger or consolidation
would beneficially own (directly or indirectly), immediately after such merger or
consolidation, securities of the surviving entity representing less than fifty
percent (50%) of the then outstanding voting securities of the surviving entity; or

     (iv) if the new directors appointed to the Board during any twelve-month period
constitute a majority of the members of the Board, unless (I) the directors who were
in office for at least twelve (12) months prior to such twelve-month period (the
“Incumbent Directors”) plus (II) the new directors who were recommended or
appointed by a majority of the Incumbent Directors constitutes a majority of the
members of the Board.

For purposes of this paragraph 10(f), a “person” includes an individual, a
partnership, a corporation, an association, an unincorporated organization, a trust or any
other entity.

     11. Stock Awards. In the event of termination of the Executive’s employment under
this Agreement for “cause”, all stock options or other stock based compensation awarded to the
Executive shall lapse and be of no further force or effect whatsoever in accordance with the
Company’s equity incentive plans. If the Company terminates the Executive’s employment under this
Agreement without “cause” or upon the death or permanent disability of the Executive, all stock
options and other stock based compensation awarded to the Executive shall become fully vested and
immediately exercisable, subject to the restrictions of Section 9.02 of the Company’s Amended and
Restated 1993 Stock Option Plan. Upon a Change in Control, all stock options or other stock based
compensation awarded to the Executive shall become fully vested and immediately exercisable and may
be exercised by the Executive at any time within one (1) year after the Change in Control. All
Stock Option Agreements between the Company and the Executive shall be amended to conform to the
provisions of this paragraph 11. In the event of an inconsistency between this paragraph 11 and
such Stock Option Agreements, this paragraph 11 shall control.

     12. Covenant Not To Compete and Confidentiality.

     (a) The Executive acknowledges the Company’s reliance on and expectation

7

 

of the Executive’s continued commitment to performance of his duties and responsibilities
during the term of this Agreement. In light of such reliance and expectation on the part of
the Company, the Executive agrees that:

     (i) for a period commencing on the date of this Agreement and ending upon the
expiration of twenty-four (24) months following the termination of the Executive’s
employment under this Agreement for any reason, including, without limitation, the
expiration of the term of this Agreement (the “Non-competition Period”), the
Executive shall not, either directly or indirectly, engage in, or have an interest
in or be associated with (whether as an officer, director, stockholder, partner,
associate, employee, consultant, owner or otherwise) any corporation, firm or
enterprise which is engaged in the development, ownership, leasing, management,
financing or sales of manufactured housing communities and/or manufactured homes,
anywhere within the continental United States or Canada; provided,
however, that, notwithstanding anything to the contrary herein, (1) in the
event that the Executive voluntarily terminates his employment with the Company, the
Non-competition Period shall extend until the later of the remainder of the initial
3-year term of this Agreement or the expiration of twenty-four (24) months following
the termination of Executive’s employment under this Agreement, (2) in the event
that the Company terminates the Executive’s employment hereunder without “cause”,
the Non-competition Period shall be reduced to twelve (12) months, and (3) the
Executive may invest in any publicly held corporation engaged, if such investment
does not exceed one percent (1%) in value of the issued and outstanding capital
stock of such corporation;

     (ii) the Executive will not at any time, for so long as any Confidential
Information (as defined below) shall remain confidential or otherwise remain wholly
or partially protectable, either during the term of this Agreement or thereafter,
use or disclose, directly or indirectly, to any person outside of the Company, or
any corporation owned or controlled by the Company or under common control with the
Company (the “Affiliates”), any Confidential Information;

     (iii) promptly upon the termination of this Agreement for any reason, the
Executive (or in the event of the Executive’s death, his personal representative)
shall return to the Company any and all copies (whether prepared by or at the
direction of the Company or Executive) of all records, drawings, materials,
memoranda and other data constituting or pertaining to Confidential Information;

     (iv) for a period commencing on the date of this Agreement and ending upon the
expiration of the Non-competition Period, the Executive shall not, either directly
or indirectly, divert, or by aid to others, do anything which would tend to divert,
from the Company or any Affiliate any trade or business with any customer or
supplier with whom the Executive had any contact or association during the term of
the Executive’s employment with the Company or with any party whose identity or
potential as a customer or supplier was confidential or learned by the Executive
during his employment by the Company; and

     (v) for a period commencing on the date of this Agreement and ending upon the
expiration of the Non-competition Period, the Executive shall not, either directly
or indirectly, call upon, compete for or solicit for employment any person with whom
the Executive was acquainted while employed by the Company.

8

 

     As used in this Agreement, the term “Confidential Information” shall mean all business
information of any nature and in any form which at the time or times concerned is not generally
known to those persons engaged in business similar to that conducted or contemplated by the Company
or any Affiliate (other than by the act or acts of an employee not authorized by the Company to
disclose such information) and which relates to any one or more of the aspects of the present or
past business of the Company or any of the Affiliates or any of their respective predecessors,
including, without limitation, financial information, business plans, prospects, opportunities
which have been discussed or considered by the management of the Company, and other trade secrets.

     (b) The Executive agrees and understands that the remedy at law for any breach by him
of this paragraph 12 will be inadequate and that the damages flowing from such breach are
not readily susceptible to being measured in monetary terms. Accordingly, it is
acknowledged that, upon adequate proof of the Executive’s violation of any legally
enforceable provision of this paragraph 12, the Company shall be entitled to immediate
injunctive relief and may obtain a temporary order restraining any threatened or further
breach. Nothing in this paragraph 12 shall be deemed to limit the Company’s remedies at law
or in equity for any breach by the Executive of any of the provisions of this paragraph 12
which may be pursued or availed of by the Company. This paragraph 12 shall survive the
termination of this Agreement.

     (c) Executive acknowledges and agrees that the covenants set forth above are reasonable
and valid in geographical and temporal scope and in all other respects. If any court
determines that any of the covenants, or any part of any covenant, is invalid or
unenforceable, the remainder of the covenants shall not be affected and shall be given full
effect, without regard to the invalid portion. If any court determines that any of the
covenants, or any part of any covenant, is unenforceable because of its duration or
geographic scope, such court shall have the power to reduce the duration or scope, as the
case may be, and, enforce such provision in such reduced form. Executive and the Company
intend to and hereby confer jurisdiction to enforce the covenants upon the courts of any
jurisdiction within the geographical scope of such covenants. If the courts of any one or
more of such jurisdictions hold the covenants, or any part of any covenant, unenforceable by
reason of the breadth of such scope or otherwise, it is the intention of Executive and the
Company that such determination not bar or in any way affect the right of the Company to the
relief provided above in the courts of any other jurisdiction within the geographical scope
of such covenants as to breaches of such covenants in such other respective jurisdictions.
For this purpose, such covenants as they relate to each jurisdiction shall be severable into
diverse and independent covenants.

     13. Arbitration. The parties agree that any and all disputes, controversies or claims
of any nature whatsoever relating to, or arising out of, this Agreement or Executive’s employment,
whether in contract, tort, or otherwise (including, without limitation, claims of wrongful
termination of employment, claims under Title VII of the Civil Rights Act, the Fair Labor Standards
Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, or comparable
state or federal laws, and any other laws dealing with employees’ rights and remedies), shall be
settled by mandatory arbitration administered by the American Arbitration Association under its
National Rules for the Resolution of Employment Disputes (the “Rules”) and the following
provisions: (a) a single arbitrator (the “Arbitrator”), mutually agreeable to the Company
and Executive, shall preside over the arbitration and shall make all decisions with respect to the
resolution of the dispute, controversy or claim between the parties; (b) in the event that the
Company and Executive are unable to agree on an Arbitrator within fifteen (15) days after either
party has filed for arbitration in accordance with the Rules, they shall select a truly neutral
arbitrator in accordance with the rules for the selection of neutral arbitrators, who shall be the
“Arbitrator” for the purposes of this paragraph 13; (c) the place of arbitration shall be

9

 

Southfield, Michigan unless mutually agreed otherwise; (d) judgment may be entered on any award
rendered by the Arbitrator in any federal or state court having jurisdiction over the parties; (e)
all fees and expenses of the Arbitrator shall be shared equally between Company and Executive; (f)
the decision of the Arbitrator shall govern and shall be conclusive and binding upon the parties;
(g) the parties shall be entitled to reasonable levels of discovery in accordance with the Federal
Rules of Civil Procedure or as permitted by the Arbitrator, provided, however, that the time
permitted for discovery shall not exceed eight (8) weeks and each party shall be limited to two (2)
depositions; and (h) this provision shall be enforceable by specific performance and/or injunctive
relief, and shall constitute a basis for dismissal of any legal action brought in violation of the
duty to arbitrate. The parties hereby acknowledge that it is their intent to expedite the
resolution of any dispute, controversy or claim hereunder and that the Arbitrator shall schedule
the timing of discovery and of the hearing consistent with that intent. Notwithstanding anything
to the contrary herein, nothing contained in this paragraph shall be construed to preclude Company
from obtaining injunctive or other equitable relief to secure specific performance or to otherwise
prevent Executive’s breach of paragraph 12 of this Agreement.

     14. Notice. Any notice, request, consent or other communication given or made
hereunder shall be given or made only in writing and (a) delivered personally to the party to whom
it is directed; (b) sent by first class mail or overnight express mail, postage and charges
prepaid, addressed to the party to whom it is directed; or (c) telecopied to the party to whom it
is directed, at the following addresses or at such other addresses as the parties may hereafter
indicate by written notice as provided herein:

          If to the REIT or SCOLP:

Sun Communities. Inc.

27777 Franklin Road, Suite 200

Southfield, Michigan 48034

Fax: (248) 208-2641

Attn: Chief Executive Officer

          If to the Executive:

John B. McLaren

27777 Franklin Road, Suite 200

Southfield, Michigan 48034

Fax: (248) 208-2644

          In all events, with a copy to:

Jaffe, Raitt, Heuer & Weiss,

Professional Corporation

27777 Franklin Road
Suite 2500

Southfield, Michigan 48034

Attn: Arthur A. Weiss

     Any such notice, request, consent or other communication given or made: (i) in the manner
indicated in clause (a) of this paragraph shall be deemed to be given or made on the date on which
it was delivered; (ii) in the manner indicated in clause (b) of this paragraph shall be deemed to
be given or made on the third business day after the day in which it was deposited in a regularly
maintained receptacle for the deposit of the United States mail, or in the case of

10

 

overnight express mail, on the business day immediately following the day on which it was deposited
in the regularly maintained receptacle for the deposit of overnight express mail; and (iii) in the
manner indicated in clause (c) of this paragraph shall be deemed to be given or made when received
by the telecopier owned or operated by the recipient thereof.

     15. Cooperation in Future Matters. Executive hereby agrees that, for a period of
eighteen (18) months following his termination of employment for any reason whatsoever, he shall
cooperate with the Company’s reasonable requests relating to matters that pertain to Executive’s
employment by the Company, including, without limitation, providing information or limited
consultation as to such matters, participating in legal proceedings, investigations or audits on
behalf of the Company, or otherwise making himself reasonably available to the Company for other
related purposes. Any such cooperation shall be performed at scheduled times taking into
consideration Executive’s other commitments, and Executive shall be compensated at a reasonable
hourly or per diem rate to be agreed upon by the parties to the extent such cooperation is required
on more than an occasional and limited basis. Executive shall not be required to perform such
cooperation to the extent it conflicts with any requirements of exclusivity of services for another
employer or otherwise, nor in any manner that in the good faith belief of Executive would conflict
with his rights under or ability to enforce this Agreement.

     16. Miscellaneous.

     (a) The provisions of this Agreement are severable and if any one or more provisions
may be determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions and any partially unenforceable provision to the extent enforceable in
any jurisdiction nevertheless shall be binding and enforceable.

     (b) Neither the Company nor the Executive may make any assignment of this Agreement or
any interest herein, by operation of law or otherwise, without the prior written consent of
the other party; provided that the Company may assign its rights under this Agreement
without the consent of the Executive in the event that the Company shall effect a
reorganization, consolidate with or merge into another corporation, partnership,
organization or other entity, or transfer all or substantially all of its properties or
assets to any other corporation, partnership, organization or other entity. This Agreement
shall inure to the benefit of and be binding upon the Company and the Executive, their
respective successors, executors, administrators, heirs and permitted assigns.

     (c) The failure of either party to enforce any provision or protections of this
Agreement shall not in any way be construed as a waiver of any such provision or provisions
as to any future violations thereof, nor prevent that party thereafter from enforcing each
and every other provision of this Agreement. The rights granted the parties herein are
cumulative and the waiver of any single remedy shall not constitute a waiver of such party’s
right to assert all other legal remedies available to it under the circumstances.

     (d) The Board shall allocate all compensation described in Sections 4, 6, 8 and 10
between the REIT and SCOLP on an annual basis, after determining the services provided to
each entity by the Executive for the relevant period. For tax reporting purposes, all
compensation will be appropriately reported to the Executive and Federal and state taxing
authorities based upon the Executive’s legal relationship with each entity as determined
under applicable law.

     (e) This Agreement supersedes all agreements, understandings, representations,
warranties, negotiations and discussions between the parties with respect

11

 

to the subject
matter hereof. No modification, termination or waiver shall be valid unless
in writing and signed by the party against whom the same is sought to be enforced.

     (f) This Agreement shall be governed by and construed according to the laws of the
State of Michigan.

     (g) Captions and paragraph headings used herein are for convenience and are not a part
of this Agreement and shall not be used in construing it.

     (h) This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

     (i) Each party shall pay his or its own fees and expenses, including, without
limitation, legal fees, incurred in connection with the transactions contemplated by this
Agreement, including, without limitation, any fees incurred in connection with any
arbitration arising out of the transactions contemplated by this Agreement.

[Signatures on following page]

12

 

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

	 	 	 	 	 	 	 
	 	 	REIT:	 	 
	 
	 	 	 	 	 	 
	 	 	SUN COMMUNITIES, INC.,

a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Gary A. Shiffman
 

Gary A. Shiffman, President and
Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 
	 	 	SCOLP:	 	 
	 
	 	 	 	 	 	 
	 	 	SUN COMMUNITIES OPERATING LIMITED

PARTNERSHIP, a
Michigan limited partnership	 	 
	 
	 	 	 	 	 	 
	 	 	By: SUN COMMUNITIES, INC.,

a Maryland corporation, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gary A. Shiffman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Gary A. Shiffman, President and
Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ John B. McLaren	 	 
	 	 	 	 	 
	 	 	JOHN B. MCLAREN	 	 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]