Document:

exv10w18

Exhibit 10.18

PROLOGIS

DEFERRED FEE PLAN FOR TRUSTEES

(As Amended and Restated Effective as of December 31, 2008)

     Section 1. History, Purpose and Effective Date. The ProLogis Deferred Fee
Plan for Trustees (formerly, the Security Capital Industrial Trust Deferred Fee Plan for Trustees,
the “Plan”) was established by ProLogis (the “Trust”) effective as of June 24, 1997 to provide
non-employee trustees of the Trust with the opportunity to defer receipt of compensation otherwise
payable to such Trustee by the Trust. The Plan is designed to aid the Trust in attracting and
retaining as members of its Board of Trustees (the “Board”) persons whose abilities, experience and
judgment can contribute to the well-being of the Trust. The following provisions constitute an
amendment, restatement and continuation of the Plan effective as of December 31, 2008. It is
intended that the provisions of the Plan conform to the requirements of section 409A of the Code
and the Plan will be interpreted in all respects in accordance with such requirements.

     Section 2. Administration of the Plan. The Plan shall be administered by a
committee of the Board consisting of two or more members of such Board who are not also employees
of the Trust or any subsidiary of the Trust (the “Committee”), as designated by the Board in its
sole discretion. In the absence of such a designation, the Board shall act as the Committee. The
Committee shall conclusively interpret the provisions of the Plan and shall make all determinations
under the Plan. The Committee shall act by vote or written consent of a majority of its members.

     Section 3. Source of Benefits. The amount of any benefit payable under the
Plan shall be paid from the general assets of the Trust or from one or more trusts, the assets of
which are subject to the claims of the Trust’s general creditors; provided, however, that, except
as described below, nothing in this Plan shall require the Trust to establish any trust to provide
benefits under the Plan. No Participant (as described in Section 4) or other individual entitled
to benefits under the Plan shall have any right, title or interest whatsoever in any assets of the
Trust or any of its affiliates or to any investment reserves, accounts or funds that the Trust may
purchase, establish or accumulate to aid in providing the benefits under the Plan. Nothing
contained in the Plan and no action taken pursuant to its provisions shall create a trust or
fiduciary relationship of any kind between the Trust and any Participant or any other person.
Neither a Participant nor a beneficiary of a Participant shall acquire any interest greater than
that of an unsecured creditor of ProLogis. Notwithstanding the foregoing, in the event of a change
or potential change in the ownership or control of the Trust which, in the opinion of the Board,
could affect the payment of benefits hereunder, the Trust shall take such actions as it deems
appropriate to protect each Participant’s Accounts (as defined in Section 6) under the Plan,
including the establishment and funding of a trust to satisfy the Trust’s obligations under the
Plan, provided that the assets of any such trust shall be subject to the claims of the Trust’s
general creditors.

 

 

     Section 4. Eligibility. Any member of the Board who is not an employee of the
Trust or any affiliate thereof (an “Outside Trustee”) is eligible to become a “Participant” in the
Plan by completing and filing a Deferral Election (as defined in Section 5) in accordance with the
terms of the Plan.

     Section 5. Deferral Elections. Subject to such additional terms, conditions
and limitations as the Committee may from time to time impose and the terms and conditions of the
Plan, for any calendar year, an Outside Trustee may make an election to defer receipt of all or any
portion of the retainer and committee fees (collectively, “Fees”) otherwise payable to the Outside
Trustee for that calendar year by filing a “Deferral Election” with the Committee. Once made, an
Outside Trustee’s Deferral Election shall carry over to future calendar years unless the Outside
Trustee modifies or revokes the Deferral Election for future calendar years in accordance with the
terms of the Plan. Deferral Elections shall be in writing and shall be filed with the Committee at
such time and in such manner as the Committee shall provide; provided, however, that in no case
shall a Deferral Election be made later than December 31 (or such earlier date specified by the
Committee) of the year preceding the calendar year in which the Fees to which it relates would be
earned by the Outside Trustee based on services performed and shall be irrevocable with respect to
the calendar year to which it relates as of such December 31 or such earlier date specified by the
Committee. An Outside Trustee who first becomes elected or appointed to the Board subsequent to
January 1 of any calendar year may, by filing a Deferral Election within 30 days of his or her
initial election or appointment to the Board, elect to defer Fees earned for services performed
after his or her initial election or appointment to the Board and after the Deferral Election is
filed. Any Deferral Election filed in accordance with the preceding sentence shall become
irrevocable for the calendar year to which it relates as of the date on which it is filed with the
Committee.

     Section 6. Accounts. Subject to the provisions of the Plan, the following
“Accounts” shall be established in the name of each Participant:

	 	(a)	 	A “Phantom Share Account” which shall reflect the Fees, if any, which are
deferred by such Participant in accordance with the terms of the Plan that would
otherwise have been payable to the Participant in the form of the Trust’s common shares
of beneficial interest (“Common Shares”) and dividends thereon.
	 
	 	(b)	 	A “Cash Account” which shall reflect the Fees, if any, which are deferred by
such Participant in accordance with the terms of the Plan that would otherwise have
been payable to the Participant in cash and the earnings attributable thereto.

Accounts under the Plan shall be for recordkeeping purposes only. The Committee may establish such
subaccounts within each Account as the Committee determines
appropriate to administer the Plan. A Participant is always fully vested in the balance in his
Accounts.

-2-

 

     Section 7. Accounting. The Accounts of each Participant shall be adjusted as
follows:

	 	(a)	 	As of the date on which Fees would otherwise be paid to a Participant:

	 	(i)	 	each Participant’s Phantom Share Account shall be credited with
that number of “share units” equal to the number of Common Shares, if any, that
the Participant elected to defer as of such date in accordance with his or her
Deferral Election; and
	 
	 	(ii)	 	each Participant’s Cash Account shall be credited with the
amount of cash Fees, if any, that the Participant elected to defer as of such
date in accordance his or her Deferral Election.

	 	(b)	 	As of the effective date of any distribution to the Participant in accordance
with the terms of the Plan:

	 	(i)	 	each Participant’s Phantom Share Account shall be debited with
the number of share units, if any, distributed to such Participant as of such
date from his or her Phantom Share Account; and
	 
	 	(ii)	 	each Participant’s Cash Account shall be debited with the
amount of cash, if any, distributed to such Participant as of such date from
his or her Cash Account.

	 	(c)	 	As of the effective date of any dividends payable with respect to the Common
Shares:

	 	(i)	 	If such dividend is payable in cash, the Participant’s Phantom
Share Account shall be credited with an additional number of share units equal
to (A) the cash dividend payable with respect to a Common Share, multiplied by
(B) the number of share units in the Participant’s Phantom Share Account, if
any, as of the applicable dividend record date, divided by (C) the Fair Market
Value (as defined below) of a Common Share on the dividend payment date.
	 
	 	(ii)	 	If such dividend is payable in Common Shares, the Participant’s
Phantom Share Account shall be credited with an additional number of share
units equal to (A) the number of shares distributed in the dividend with
respect to a Common Share, multiplied by (B)
the number of share units in the Participant’s Phantom Share Account, if
any, as of the applicable dividend record date.

	 	(d)	 	As of the last day of each calendar quarter (and, if applicable, as of the day
immediately preceding the first Payment Date (as defined in Section 8) (each an
“Accounting Date”), the balance in the Participant’s Cash 

-3-

 

	 	 	 	Account, if any, shall be credited with interest, at the Investment Return Rate (defined below), compounded
quarterly. Interest shall be prorated on a daily basis according to the balance in the
Participant’s Account.

For purposes of the Plan, the term “Fair Market Value” shall have the same meaning as under the
Trust’s 2006 Long-Term Incentive Plan (or any successor thereto) and the term “Investment Return
Rate” means the Trust’s average borrowing rate for the applicable calendar quarter.

     Section 8. Time and Form of Payment. Subject to the provisions of Sections 9
and 10 and 12, the following provisions of this Section 8, and the other terms and conditions of
the Plan, the following shall apply with respect to the distribution of a Participant’s Account:

	 	(a)	 	Payment of a Participant’s Account balances, determined as of the day before
Payment Date (as defined below) shall be made (or shall begin to be distributed) to the
Participant as of the permitted Payment Dates and in the permitted Payment Form (as
defined below), each as elected by the Participant in his first Deferral Election under
the Plan (or, with respect to any person who was a Participant in the Plan immediately
prior to the Effective Date, as elected in the Deferral Election on file with respect
to the Participant on December 31, 2008).
	 
	 	(b)	 	For purposes of the Plan, (i) permissible “Payment Forms” are (A) a lump sum
payment or (B) a series of annual or quarterly installments for a period not to exceed
ten years, and (ii) permissible “Payment Dates” are (A) a specified date, (B) the date
on which the Participant’s service as an Outside Trustee terminates for any reason (the
“Termination Date”), or (C) the earlier of a specified date or the Participant’s
Termination Date.
	 
	 	(c)	 	Notwithstanding the provisions of paragraph 8(b), a Participant who is a
Participant in the Plan as of December 31, 2008 and who files a “Special Payment
Election” with the Committee on or prior to December 31, 2008, shall be permitted to
elect payment of all or a portion of his Account balance in a lump sum as of a
specified date in calendar year 2009. No Special Payment Election made pursuant to
this paragraph 8(c) shall (i) accelerate into 2008 payment of any amount that would
have otherwise
been paid after 2008 or (ii) defer into a year after 2008 payment of any amount that
would otherwise have been paid prior to 2009.
	 
	 	(d)	 	If no Payment Date is specified in a Participant’s first Deferral Election (or,
if applicable, the election on file as of December 31, 2008), the Participant shall be
deemed to have elected his or her Termination Date as the Payment Date. If no Payment
Form is specified in a Participant’s first Deferral Election (or, if applicable, the
election on file as of December 31, 2008), the Participant shall be deemed to have
elected a lump sum as the 

-4-

 

	 	 	 	Payment Form. Payments under the Plan shall be made (or
shall begin) as soon as practicable (but in no event more than 30 days) after the
applicable Payment Date.
	 
	 	(e)	 	If payment of any portion of the Participant’s Account balance is to be made in
the form of installment payments, the installment payment for the year in which the
Payment Date occurs shall begin as soon as practicable (but not more than 30 days)
after the Participant’s Payment Date and any subsequent annual installments shall be
paid in the calendar year following the calendar year in which the Payment Date occurs
(at such time during such year as determined by the Committee). The amount of each
installment payment shall be equal to the Participant’s Account balance, determined as
of the Accounting Date immediately prior to the payment of the installment, divided by
the number of installments remaining to be made, including the then current
installment.
	 
	 	(f)	 	Unless the Committee determines otherwise, share units shall be paid in the
form of Common Shares, with the Participant receiving one Common Share for each share
unit distributed (and cash equal to any fractional share unit). The amount in the
Participant’s Cash Account, if any, shall be paid in cash.

Notwithstanding any other provision of the Plan to the contrary, in all cases, whether a
Participant has had a Termination Date or other separation from service for purposes of the
Plan shall be determined in accordance with the requirements of section 409A of the Code
(and applicable guidance issued thereunder) relating to separations from service by applying
the applicable default provisions.

     Section 9.  Changes to Form of Payment. From and after the Effective Date, a
Participant may change the Payment Date and/or Payment Form (including any Payment Date or Payment
Form established pursuant to a deemed election pursuant to Section 8) once during his period of
participation in the Plan after the Effective Date by filing an election with the Committee.
Notwithstanding any other provision of the Plan to the contrary, any such election to change the
Payment Date and/or Payment Form (a) shall not be effective until the date that is 12 months
following the date on which it is filed with the Committee and (b) shall be effective only if
it is filed with the Committee at least 12 months prior to the date on which payments are otherwise
to be made (or begin) under the Plan (i.e., the date on which the first payment of the
Participant’s Accounts is otherwise scheduled to begin pursuant to Section 8). If a Participant
files an effective change to the Payment Date and/or Payment Form pursuant to this Section 9,
payment of the Participant’s Account balance shall be distributed in accordance with the new
payment election and such payments shall be made (or shall commence) as soon as practicable (but in
no event more than 30 days) after the date which is the fifth anniversary of the date on which

-5-

 

payment was to commence under the Participant’s prior Deferral Election (the “Deferred Commencement
Date”). The amount of each distribution that is payable on or after the Deferred Commencement Date
shall be determined in accordance with Section 8 by substituting the Deferred Commencement Date for
the Payment Date in such Section 8.

     Section 10. Unforeseeable Emergency. The Committee may, pursuant to rules
adopted by it and applied in a uniform manner, accelerate the date of distribution of a
Participant’s Accounts because of an unforeseeable emergency at any time. “Unforeseeable
Emergency” shall mean an unforeseeable, severe financial hardship to the Participant resulting from
(a) a sudden and unexpected illness or accident of the Participant or his dependent (as defined in
section 152(a) of the Code, without regard to section 152(b)(1), (b)(2) and (d)(1)(B) of the Code);
(b) loss of the Participant’s property due to casualty (including the need to rebuild a home
following damage to the home not otherwise covered by insurance); or (c) other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the control of
the Participant. Whether a Participant has an Unforeseeable Emergency shall be determined on the
relevant facts and circumstances of the applicable situation but, in any case, a distribution shall
not be considered to be on account of an Unforeseeable Emergency to the extent that the emergency
is or may be relieved through reimbursement or compensation from insurance or otherwise or by
liquidation of the Participant’s assets (to the extent that the liquidation of such assets would
not cause severe financial hardship). Distributions on account of an Unforeseeable Emergency shall
be limited to the amount reasonably necessary to satisfy the emergency need (including amounts
necessary to pay any federal, state, local or foreign income taxes or penalties reasonably
anticipated to result from the distribution). Distribution pursuant to this Section 10 of less
than the Participant’s entire interest in the Plan shall be made pro rata from his Accounts.
Subject to the foregoing, payment of any amount with respect to which a Participant has filed a
request under this Section 10 shall be made in a lump sum as soon as practicable (but in no event
more than 30 days) after approval of such request by the Committee.

     Section 11. Designation of Beneficiary. A Participant may designate a
beneficiary or beneficiaries which shall be effective upon filing written notice with the Secretary
of the Trust on the form provided for that purpose. If no beneficiary is
designated, or if no designated beneficiary survives the Participant, the beneficiary shall be
the Participant’s estate. If more than one beneficiary statement has been filed, the beneficiary
or beneficiaries designated in the statement bearing the most recent date shall be deemed the valid
beneficiary or beneficiaries.

     Section 12. Death of Participant or Beneficiary. In the event of a
Participant’s death before he or she has received the full value of his or her Accounts, the then
current value of the Participant’s Accounts shall be determined as of the Accounting Date
immediately following death and such amount shall be paid to the

-6-

 

beneficiary or beneficiaries of
the deceased Participant as soon as practicable (but in no event more than 30 days) thereafter in a
lump sum.

     Section 13. Adjustments on Recapitalization. In the event of a corporate
transaction involving the Trust, the Committee shall adjust share units credited to Participants’
Accounts when an equitable adjustment is required to preserve the benefits or potential benefits
thereof and the Committee may adjust share units in other situations (including, without
limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, split-up, spin-off, sale of assets or subsidiaries,
combination or exchange of shares). Action by the Committee may include, in its sole discretion:
(a) adjustment of the number and kind of shares which may be delivered under the Plan; and (b) any
other adjustments that the Committee determines to be equitable.

     Section 14. Compliance with Securities and Other Laws. In no event shall the
Trust be required to issue Common Shares to any person in settlement of a Participant’s Account if
the issuance thereof would constitute a violation by either the Participant or the Trust of any
provision of any law or regulation of any governmental authority or any national securities
exchange. To the extent that the Plan provides for issuance of certificates to reflect the transfer
of Common Shares, the transfer of such Common Shares may be effected on a non-certificated basis,
to the extent not prohibited by applicable law or the rules of any stock exchange.

     Section 15. Assignability. No right to receive payments hereunder shall be
transferable or assignable by a Participant or a beneficiary, except by will or by the laws of
descent and distribution.

     Section 16. Amendment of Termination of Plan. This Plan may at anytime or
from time to time be amended, modified or terminated by the Board, subject to the requirements of
section 409A of the Code No amendment, modification or termination shall, without the consent of a
Participant, adversely affect such Participant’s accruals on his or her prior elections.

     Section 17. Governing Law. This Plan shall be governed by and construed in
accordance with the laws of the State of Maryland.

-7-exv10w19

Exhibit 10.19

THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered
into on January 7, 2009 (the “Effective Date”), by and between Walter C. Rakowich (the “Executive”)
and ProLogis, a Maryland real estate investment trust (the “Company”).

WITNESSETH THAT:

     WHEREAS, the Executive is currently employed by the Company in an executive capacity;

     WHEREAS, the parties are currently parties to that certain Second Amended and Restated
Employment Agreement dated December 31, 2008 (the “Prior Employment Agreement”);

     WHEREAS, the Management Development and Compensation Committee (the “Committee”) of the Board
of Trustees of the Company (the “Board”) has the authority to determine the compensation and other
terms and conditions of the Company’s executives; and

     WHEREAS, the Committee has determined that it is appropriate to make certain changes to the
Prior Employment Agreement to reflect changes to certain aspects of the Executive’s terms and
conditions of employment with the Company; and

     WHEREAS, the Company and the Executive have agreed to enter into this Agreement to reflect the
terms and conditions of the Executive’s employment with the Company from and after the Effective
Date;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, it is
hereby covenanted and agreed by the Executive and the Company as follows:

     1. Term. Subject to the terms and conditions of this Agreement, the Company hereby
agrees to employ the Executive as its Chief Executive Officer for the Agreement Term (as defined
below), and the Executive hereby agrees to remain in the employ of the Company and to provide
services during the Agreement Term in accordance with this Agreement. The “Agreement Term” shall
be the period beginning as of the Effective Date and ending on December 31, 2011, or if this
Agreement is earlier terminated pursuant to paragraph 4 hereof, the date of such termination;
provided, however, that the Executive’s promotion to Chief Executive Officer was effective as of
November 10, 2008.

     2. Performance of Services. The Executive’s employment with the Company shall be
subject to the following:

          (a) During the Agreement Term, while the Executive is employed by the Company, the Executive
shall devote his full time, energies and talents to serving as its Chief Executive Officer.

 

 

          (b) The Executive shall report to the Board. The Executive agrees that he shall perform his
duties faithfully and efficiently and to the best of his abilities, subject to the directions of
the Board. The Executive’s duties may include providing services for both the Company and the
Subsidiaries (as defined below), as determined by the Board; provided, that the Executive shall
not, without his consent, be assigned tasks that would be inconsistent with those of a chief
executive officer of a comparable company to the Company. The Executive shall have such authority,
power, responsibilities and duties as are inherent in his positions (and the undertakings
applicable to his positions) and necessary to carry out his responsibilities and the duties
required of him hereunder.

          (c) Notwithstanding the foregoing provisions of this paragraph 2, during the Agreement Term,
the Executive may devote reasonable time to the supervision of his personal investments and
activities involving professional, charitable, community, educational, religious and similar types
of organizations, speaking engagements, membership on the boards of directors of other
organizations, and similar types of activities, to the extent that such other activities do not, in
the judgment of the Board, interfere with the performance of the Executive’s duties under this
Agreement, violate the terms of any of the covenants contained in paragraph 8 or 9 hereof or
otherwise conflict in any material way with the business of the Company or any Subsidiary;
provided, however, that the Executive shall not serve on the board of any business, or hold any
other position with any business, without the prior consent of a majority of the nonemployee
members of the Board.

          (d) For purposes of this Agreement, the term “Subsidiary” shall mean any corporation,
partnership, joint venture or other entity during any period in which at least a fifty percent
(50%) interest in such entity is owned, directly or indirectly, by the Company (or a successor to
the Company).

     3. Compensation. Subject to the terms of this Agreement, during the Agreement Term,
while the Executive is employed by the Company, the Company shall compensate him for his services
as follows:

          (a) For the portion of the Agreement Term commencing on the Effective Date and ending on
December 31, 2008, the Executive shall receive a base salary at the annual rate of $630,000 (the
“Salary”). Effective for each 12-consecutive month period of the Agreement Term commencing on
January 1, 2009 and ending on each anniversary thereof, the Executive’s annual rate of Salary shall
be equal to $1,000,000. The Executive’s Salary shall be payable in installments in the same manner
as salary is paid to other corporate-level senior managers of the Company.

          (b) For calendar year 2008, the Executive shall receive a bonus equal to $840,000, payable at
the same time as bonuses are paid to other corporate-level senior managers of the Company. For the
calendar year commencing on January 1, 2009, the Executive may receive an annual bonus that has a
target equal to 200% of his Salary (the “Target Bonus”) and that shall be not less than zero and
not more than 200% of the Target Bonus; provided, however, that the actual amount of the annual
bonus earned by and payable to the Executive in any year shall be determined upon the satisfaction
of goals and objectives established by the Committee and communicated to the Executive, and shall
be subject to such other terms and conditions of

2

 

the Company’s annual bonus plan as in effect from time to time, including the right of the
Committee, in its discretion, to reduce the amount of the annual bonus following the end of the
year in which such annual bonus shall have been earned. Such bonuses shall be paid at the same
time as bonuses are paid to other corporate-level senior managers of the Company. The corporate
financial goals and objectives established for the Executive shall be the corporate financial goals
and objectives established for other corporate-level senior managers of the Company in terms of
measurement and definition. Any additional operating, strategic or other goals and objectives
established for the Executive shall be as determined by the Committee and communicated to the
Executive not later than the time that the corporate financial goals and objectives are
communicated to the Executive.

          (c) Special LTIP Award. On November 11, 2008, the Executive was awarded stock options
and restricted stock units under the Company’s 2006 Long-Term Incentive Plan (the “LTIP”). Such
awards (the “Special LTIP Awards”) will vest as 25% of the applicable grant on each of December 31,
2008, 2009, 2010 and 2011, respectively, provided that vesting for each 25% of the grant shall be
conditioned upon the Executive’s continuous employment by the Company through the vesting date
applicable to the 25% of the grant in question (or as otherwise provided in this Agreement). In
all other respects, such awards shall be subject to the standard terms and conditions as apply to
the grants of such awards made under the LTIP and shall be evidenced by an appropriate grant
agreement.

          (d) Incentive Awards.

          (i) During each calendar year of the Agreement Term (that is, for 2009, 2010 and 2011),
the Executive shall be granted equity-based awards under the LTIP, as amended from time to
time (or a successor plan thereto) and/or a cash incentive award (such annual award, whether
in the form of equity-based awards, cash or a combination thereof, being referred to herein
as the “Incentive Award”), having an annual aggregate value (as determined under generally
accepted accounting principles consistently applied by the Company to Incentive Awards to
senior executives granted at such time) of $7,500,000, in such form(s) as determined by the
Committee but consistent with the forms of Incentive Awards granted to other senior
executives of the Company and consistent with the proportion of each type of Incentive Award
granted to other senior executives of the Company; provided, however, that for calendar year
2008, the Executive’s Incentive Award shall be an amount having an aggregate value (as
determined under generally accepted accounting principles consistently applied by the
Company to awards to senior executives granted at that time) of $3,500,000. To the extent
applicable, each stock option granted pursuant to this clause 3(d)(i) shall have a term of
10 years from its date of grant. Except as otherwise expressly provided in this
subparagraph 3(d), the date on which the grants of the Incentive Awards pursuant to this
clause 3(d)(i) shall occur and the terms and conditions applicable to such Incentive Awards
shall be determined by the Committee in its discretion, provided that the Incentive Awards
made pursuant to this clause 3(d)(i) shall be made at the same time and, except as otherwise
expressly provided in this subparagraph 3(d), shall have the same terms as annual Incentive
Awards granted to other senior executives of the Company (or if not granted to other senior
executives, such awards shall be granted to the Executive at least annually, based on the
terms applicable under the last such type awards granted to

3

 

them) and that the first such grant for 2008 shall be made not later than the time
Incentive Awards are made for other senior executives of the Company. For the avoidance of
doubt, the Executive shall be entitled to an Incentive Award for 2011 if he remains
continuously employed by the Company through 2011, even though such Incentive Award may be
made after the Agreement Term expires; provided, however, that, with respect to the
Incentive Award for 2011, the Company, in its discretion, may determine (1) the form of the
award (e.g., cash, equity-based or a combination thereof) without regard to the form of
Incentive Awards granted to other senior executives of the Company and (2) the timing of the
award as long as it is made no later than the time at which the Incentive Awards for 2011
are made for other senior executives of the Company.

          (ii) Any provision of clause 3(d)(i) to the contrary notwithstanding, each equity-based
award Incentive Award that is granted to the Executive under the LTIP (or a successor
thereto) on or after the Effective Date and the Special LTIP Awards (collectively, the “New
Incentive Awards”) shall provide as of the date on which such New Incentive Award is
granted:

          (1) If the Date of Termination (as defined in subparagraph 4(h)) occurs during
the Agreement Term as the result of (A) termination by the Company without Cause (as
defined in subparagraph 4(c)), (B) by Constructive Discharge (as defined in
subparagraph 4(d)), or (C) due to the Executive’s death or Disability (as defined in
subparagraph 4(b)), or if the Agreement Term expires on December 31, 2011 and the
Executive’s Date of Termination does not occur prior such date, any New Incentive
Award that is not then vested or exercisable shall continue to vest in accordance
with its terms as though the Executive had remained an employee of the Company until
such New Incentive Award is fully vested.

          (2) If the Date of Termination occurs during the Agreement Term for any reason
other than as specified in subclause 3(d)(ii)(1), any portion of the New Incentive
Awards that are not vested or exercisable as of the Date of Termination shall be
forfeited as of the Date of Termination and the Executive shall have no further
rights under or with respect thereto.

          (3) To the extent applicable and to the extent vested, each New Incentive Award
shall remain exercisable through the expiration date thereof, which shall be defined
as the ten year anniversary of the date of grant, unless the Date of Termination
occurs pursuant to subclause 3(d)(ii)(1) in which case the Expiration Date shall be
that defined the LTIP (or a successor thereto) or the applicable award agreement
evidencing the New Incentive Award, as applicable.

          (4) Notwithstanding the foregoing provisions of this paragraph 3(d), if, within
one year following the Date of Termination, the Executive breaches the provisions of
paragraph 8 or subparagraphs 9(a) or 9(b), any New Incentive Awards that are not
vested upon the date of such breach shall be

4

 

forfeited and the Executive shall have no further rights under or with respect
thereto.

          (iii) Any provision of clause 3(d)(i) to the contrary notwithstanding, each
equity-based award that has been granted to the Executive under the LTIP (or the ProLogis
1997 Long-Term Incentive Plan (the “1997 Plan”)) prior to the Effective Date and that is
outstanding on the Effective Date other than the Special LTIP Awards (collectively, the
“Existing Incentive Awards”) shall provide (or shall be amended to provide) as follows as of
the Effective Date:

          (1) If the Date of Termination occurs during the Agreement Term as the result
of (A) termination by the Company without Cause , (B) by Constructive Discharge, or
(C) due to the Executive’s death or Disability, or if Executive remains continuously
employed by the Company through December 31, 2009, any Existing Incentive Award that
is not then vested or exercisable shall continue to vest in accordance with its
terms as though the Executive had remained an employee of the Company until such
Existing Incentive Award is fully vested.

          (2) If the Date of Termination occurs prior to December 31, 2009 for any reason
other than as specified in subclause 3(d)(iii)(1), any portion of the Existing
Incentive Awards that are not vested or exercisable as of the Date of Termination
shall be forfeited as of the Date of Termination and the Executive shall have no
further rights under or with respect thereto.

          (3) To the extent applicable and to the extent vested, each Existing Incentive
Award shall remain exercisable through the expiration date thereof, which shall be
defined as the ten year anniversary of the date of grant, unless the Date of
Termination occurs pursuant to subclause 3(d)(iii)(1) in which case the Expiration
Date shall be that defined in the 1997 Plan, the LTIP or the applicable award
agreement evidencing the Existing Incentive Award, as applicable.

          (4) Notwithstanding the foregoing provisions of this paragraph 3(d), if, within
the one year period beginning on the earlier of the Date of Termination or December
31, 2009 the Executive breaches the provisions of paragraph 8 or subparagraphs 9(a)
or 9(b), any Existing Incentive Awards that are not vested upon the date of such
breach shall be forfeited and the Executive shall have no further rights under or
with respect thereto.

          (iv) Except as otherwise specifically provided to the contrary in clause 3(d)(i)
(relating to Incentive Awards for calendar year 2011), in no event shall the Executive be
entitled to any awards pursuant to this subparagraph 3(d) if his Date of Termination has
occurred prior to the date on which the awards are made under the LTIP for the applicable
calendar year. Nothing in this clause 3(d)(iv) shall affect the Executive’s rights under
paragraph 5.

5

 

          (e) Except as otherwise specifically provided to the contrary in this Agreement, the Executive
shall be eligible to participate in the Company’s employee benefit plans, programs, policies and
arrangements to the same extent and on the same terms as those benefits are provided by the Company
from time to time to the Company’s other similarly situated senior management employees whose
principal residence and Company workplace is in the United States.

          (f) In the event that the Company materially restates or otherwise materially modifies any of
its financial statements, the Company and the Executive shall submit to arbitration, pursuant to
paragraph 24 hereof, the question of whether and in what amount, if any, compensation previously
paid to the Executive based upon the satisfaction of goals and objectives established by the
Committee pursuant to this paragraph 3 exceeded the amount of compensation that would have been
paid to the Executive based upon the extent to which such goals and objectives actually had been
satisfied, as determined based upon the restated or modified financial statements (such excess
being referred to herein as the “Excess Compensation”). If it is determined pursuant to such
arbitration proceeding that the Executive was paid Excess Compensation, the Executive shall pay to
the Company a cash amount equal to the Excess Compensation within 30 days following the Executive’s
receipt of notice of such determination. If the Executive fails to pay such cash amount to the
Company within such 30-day period, the Company shall be entitled, in its discretion, (i) to set off
the amount of the Excess Compensation against amounts of compensation payable, or to become
payable, to the Executive by the Company, (ii) cause the Executive to forfeit stock options granted
by the Company and held by the Executive having an aggregate intrinsic value (i.e., the Fair Market
Value of one Share as of the date of determination, minus the stock option exercise price) equal to
the amount of the Excess Compensation, (iii) cause the Executive to forfeit any Shares acquired by
the Executive (after tax withholding therefrom) upon the vesting of any awards granted by the
Company having an aggregate Fair Market Value on the date of such forfeiture (after tax withholding
therefrom) equal to the amount of the Excess Compensation or (iv) take any combination of the
actions described in the foregoing clauses (i), (ii) and (iii). Notwithstanding the foregoing, in
no event shall any such offset be applied to any compensation otherwise payable to the Executive
that is subject to section 409A of the Code.

          (g) The Executive is authorized to incur reasonable expenses for entertainment, travel, meals,
lodging and similar items in promoting the Company’s business. The Company will reimburse the
Executive for reasonable expenses so incurred in accordance with the normal practices of the
Company.

          (h) The Company shall pay the Executive’s professional fees incurred to negotiate this
Agreement in an amount not to exceed $100,000. The Executive shall submit a copy of the statement
for such professional services to the Company on or before February 28, 2009, and the Company shall
make such payment not later than 30 days following the date on which the Company receives the copy
of such statement.

          (i) Within twelve (12) months after the time the Executive receives any portion of the
$7,500,000 Incentive Award described in subparagraph 3(d) above (if paid in cash) or after the time
any such Incentive Award vests (in the case of equity-based awards), the Executive shall contribute
15% of the value of such Incentive Award (determined as of the time

6

 

of payment, in the case of cash awards, and at the time an award vests and is paid, in the
case of an equity-based award) to The ProLogis Foundation.

     4. Termination. The Executive’s employment with the Company during the Agreement Term
may be terminated by the Company or the Executive without any breach of this Agreement only under
the circumstances described in subparagraphs 4(a) through 4(f):

          (a) Death. The Executive’s employment hereunder will terminate upon his death.

          (b) Disability. The Company may terminate the Executive’s employment during any
period in which he is Disabled. The Executive shall be considered “Disabled” or to have a
“Disability” during any period in which he is, by reason of a medically determinable physical or
mental impairment, entitled to receive cash benefits (after completion of any applicable waiting
period) under the Company’s long-term disability benefit plan as in effect from time to time for
the Executive.

          (c) Cause. The Company may terminate the Executive’s employment hereunder at any time
for Cause. For purposes of this Agreement, the term “Cause” shall mean in the reasonable judgment
of the Board (i) the willful and continued failure by the Executive to substantially perform his
duties with the Company or any Subsidiary which failure is not corrected within 30 days after
written notification by the Company or Subsidiary, (ii) the willful engaging by the Executive in
conduct which is demonstrably injurious to the Company or any Subsidiary, monetarily or otherwise,
or (iii) the engaging by the Executive in egregious misconduct involving serious moral turpitude.
For purposes hereof, no act, or failure to act, on the Executive’s part shall be deemed “willful”
if done, or omitted to be done, by the Executive in good faith or with a reasonable belief that
such action was in the best interest of the Company or Subsidiary.

          (d) Constructive Discharge. If (x) the Executive provides written notice to the
Company of the occurrence of Good Reason (as defined below) within 90 days after the Executive
first has knowledge of the circumstances constituting Good Reason, which notice shall specifically
identify the circumstances which the Executive believes constitute Good Reason; (y) the Company
fails to correct the circumstances constituting “Good Reason” within 30 days after such notice; and
(z) the Executive resigns within six months after the initial existence of such circumstances; then
the Executive shall be considered to have been subject to a Constructive Discharge by the Company.
For purposes of this Agreement, “Good Reason” shall mean, without the Executive’s express written
consent (and except in consequence of a prior termination of the Executive’s employment), the
occurrence of any of the following circumstances:

          (i) The assignment of any duties to the Executive that are materially inconsistent with
his position and status as Chief Executive Officer of the Company.

          (ii) A material reduction by the Company in the Executive’s Salary or Target Bonus
percentage to an amount that is less than that required under subparagraph 3(a) or 3(b), or,
for periods prior to January 1, 2009, a material reduction in the 2008

7

 

Bonus, as the case may be, provided that the Committee’s exercise of its discretion to
reduce the dollar amount of the annual bonus in accordance with subparagraph 3(b) hereof
shall not constitute Good Reason.

          (iii) Upon or within 24 months following a Change in Control, relocation of the
Executive’s base office to an office that is more than 30 highway miles from the Executive’s
base office on the day immediately preceding the date of the Change in Control;

          (iv) Failure of the Company to obtain a satisfactory agreement from any successor to
assume and agree to perform this Agreement.

          (v) Upon or within 24 months following a Change in Control, either (A) the Executive is
not the chief executive officer of the publicly-traded entity resulting from such Change in
Control or of the publicly-traded parent of such entity, in either case reporting directly
to the board of directors of such publicly-traded entity or such publicly-traded parent, or
(B) there is no publicly-traded entity resulting from such Change in Control and no
publicly-traded parent of such entity.

The Executive’s right to terminate his employment pursuant to this subparagraph 4(d) shall not be
affected by his incapacity due to physical or mental illness. The Executive’s continued employment
during any notice and cure period set forth in this subparagraph 4(d) shall not constitute consent
to the applicable Good Reason event and shall not constitute a waiver of the Executive’s right to
terminate employment on account of Good Reason after expiration of any cure period in accordance
with this subparagraph 4(d).

          (e) Termination by Executive. The Executive may terminate his employment hereunder at
any time for any reason by giving the Company prior written Notice of Termination (as defined in
subparagraph 4(g)), which Notice of Termination shall be effective not less than 60 days after it
is given to the Company, provided that nothing in this Agreement shall require the Executive to
specify a reason for any such termination. However, to the extent that the procedures specified in
subparagraph 4(d) are required, the procedures of this subparagraph 4(e) may not be used in lieu of
the procedures required under subparagraph 4(d).

          (f) Termination by Company. The Company may terminate the Executive’s employment
hereunder at any time for any reason, by giving the Executive prior written Notice of Termination,
which Notice of Termination shall be effective immediately, or such later time as is specified in
such notice. The Company shall not be required to specify a reason for the termination under this
subparagraph 4(f), provided that termination of the Executive’s employment by the Company shall be
deemed to have occurred under this subparagraph 4(f) only if it is not for reasons described in
subparagraph 4(b), 4(c), 4(d), or 4(e). Notwithstanding the foregoing provisions of this
subparagraph 4(f), if the Executive’s employment is terminated by the Company in accordance with
this subparagraph 4(f), and within a reasonable time period thereafter, it is determined by the
Board that circumstances existed which would have constituted a basis for termination of the
Executive’s employment for Cause in accordance with subparagraph 4(c) disregarding circumstances
which could have been remedied if notice had

8

 

been given in accordance with subparagraph 4(c), the Executive’s employment will be deemed to
have been terminated for Cause in accordance with subparagraph 4(c).

          (g) Notice of Termination. Any termination of the Executive’s employment by the
Company or the Executive (other than a termination pursuant to subparagraph 4(a)) must be
communicated by a written Notice of Termination to the other party hereto. For purposes of this
Agreement, a “Notice of Termination” means a dated notice which indicates the Date of Termination
(not earlier than the date on which the notice is provided), and which indicates the specific
termination provision in this Agreement relied on and, except for a termination pursuant to
subparagraph 4(e) or 4(f), which sets forth in reasonable detail the facts and circumstances, if
any, claimed to provide a basis for termination of the Executive’s employment under the provision
so indicated. No purported termination of the Executive’s employment which is not effected
pursuant to a Notice of Termination satisfying the requirements of this subparagraph shall be
effective.

          (h) Date of Termination. “Date of Termination” means the last day the Executive is
employed by the Company and the Subsidiaries, provided that the Executive’s employment is
terminated in accordance with the foregoing provisions of this paragraph 4 and such termination
constitutes a “separation from service” within the meaning of Treasury Regulation Section
1.409A-1(h) determined in accordance with the default provisions thereof.

          (i) Effect of Termination. If, on the Date of Termination, the Executive is a member
of the Board or the board of trustees or board of directors of any of the Subsidiaries, or holds
any other position with the Company or any of the Subsidiaries (other than the position described
in subparagraph 2(a) hereof), the Executive shall resign from all such positions as of the Date of
Termination. Notwithstanding anything to the contrary in this Agreement, in the event that the
Executive’s employment is terminated pursuant to subparagraph 4(a) (relating to the Executive’s
death), subparagraph 4(b) (relating to the Executive being Disabled), subparagraph 4(d) (relating
to Constructive Discharge) or subparagraph 4(f) (relating to termination by the Company without
Cause), any portion of the Incentive Award (including but not limited to any pro rata Incentive
Award that is paid pursuant to clauses 5(b)(ii) or 5(d)(v)) that is paid or vests on or after the
earlier of the date that Notice of Termination is provided or the Executive’s Date of Termination
shall not trigger any obligation by the Executive to make a contribution to The ProLogis
Foundation pursuant to subparagraph 3(i).

     5. Rights Upon Termination. The Executive’s right to payments and benefits under this
Agreement for periods after his Date of Termination shall be determined in accordance with the
following provisions of this paragraph 5:

          (a) If the Executive’s Date of Termination occurs during the Agreement Term for any reason, or
upon the expiration of the Agreement Term as provided in paragraph 1 hereof, the Company shall pay
to the Executive:

          (i) The Executive’s Salary (to the extent not previously paid) for the period ending on
the Date of Termination, payable within 30 days following the Date of Termination (or such
earlier date required by applicable law).

9

 

          (ii) Payment for unused vacation days, as determined in accordance with Company policy
as in effect from time to time, payable within 30 days following the Date of Termination (or
such earlier date required by applicable law).

          (iii) If the Date of Termination occurs after the end of a performance period and prior
to the payment of the Target Bonus or other applicable bonus amount (as described in
subparagraph 3(b)) for the period, the Executive shall be paid such bonus amount at the
regularly scheduled time.

          (iv) Any other payments or benefits to be provided to the Executive by the Company
pursuant to any employee benefit plans or arrangements of the Company, to the extent such
amounts are due from the Company.

          (v) Any unreimbursed business expenses payable pursuant to clause 3(g) for the period
ending on such termination.

          (vi) Any amounts to which the Executive may be entitled under subparagraph 10(c),
payable in accordance with subparagraph 10(c).

Nothing in this Agreement shall be construed as requiring the Executive to be treated as employed
by the Company for purposes of any employee benefit plan or arrangement following the date of the
Executive’s Date of Termination.

          (b) If the Executive’s Date of Termination occurs during the Agreement Term under
circumstances described in subparagraph 4(a) (relating to the Executive’s death) or in subparagraph
4(b) (relating to the Executive’s being Disabled), then, in addition to the amounts payable in
accordance with subparagraph 5(a), the Executive shall be entitled to:

          (i) a bonus pursuant to subparagraph 3(b) for the fiscal year in which the Date of
Termination occurs based on actual performance for such full fiscal year under the
applicable bonus plan, determined solely by the achievement of those corporate financial
goals and objectives established for the corporate-level senior managers of the Company,
including the Executive (and not upon the achievement of any additional operating, strategic
or other goals or objectives established only for the Executive, and without the exercise of
any negative discretion), multiplied by a fraction, the numerator of which is the number of
days that the Executive was employed by the Company during such fiscal year, and the
denominator of which is 365. Any prorated bonus payable pursuant to this clause 5(b)(i)
shall be payable at the time that bonuses are payable to senior managers of the Company
generally for such fiscal year (and not later than March 15 following the year in which the
Date of Termination occurs); and

          (ii) a pro rata portion of the Incentive Award pursuant to subparagraph 3(d) for the
calendar year in which the Date of Termination occurs determined by multiplying $7,500,000
by a fraction, the numerator of which is the number of days that the Executive was employed
by the Company during such calendar year, and the denominator of which is 365. Any prorated
Incentive Award payable pursuant to this clause 5(b)(ii) shall be payable and/or granted on
the Date of Termination.

10

 

          (c) If the Executive’s Date of Termination occurs during the Agreement Term under
circumstances described in subparagraph 4(c) (relating to the Executive’s termination for Cause),
subparagraph 4(e) (relating to the Executive’s resignation other than his Constructive Discharge),
or if the Executive’s employment with the Company terminates upon the expiration of the Agreement
Term (as contemplated in paragraph 1), then, except as otherwise expressly provided in this
Agreement or otherwise agreed in writing between the Executive and the Board, the Company shall
have no obligation to make payments under this Agreement for periods after the Executive’s Date of
Termination.

          (d) If the Executive’s Date of Termination occurs during the Agreement Term under
circumstances described in subparagraph 4(d) (relating to Constructive Discharge) or subparagraph
4(f) (relating to termination by the Company without Cause), then, in addition to the amounts
payable in accordance with subparagraphs 5(a):

          (i) The Executive shall receive from the Company an amount equal to the product of (x)
two (2) multiplied by (y) the sum of the Executive’s Salary plus his Target Bonus or, if the
Termination Date occurs prior to January 1, 2009, the 2008 Bonus (in each case determined
without regard for any reduction constituting Good Reason), which amount shall be payable to
the Executive in substantially equal payroll installments for the 24-month period following
the Date of Termination (the “Severance Period”). The Severance Period, and the Company’s
obligation to make payments under this clause 5(d)(i) shall cease with respect to periods
after the breach by the Executive of any of the provisions of paragraph 8, subparagraph 9(b)
or paragraph 12 of this Agreement. In no event, however, shall the Executive be entitled to
receive any amounts, rights, or benefits under this subparagraph 5(d) unless the “Release
Requirements” are satisfied and such requirements will be satisfied if he executes a release
of claims against the Company in the form attached hereto as Exhibit A within 45 days
following the date such release is tendered by the Company to the Executive, which tender
shall be made by the Company within 15 days following the Date of Termination, and all
periods within which the Executive shall have the right to revoke such release, or any
portion thereof, shall have expired. In the event that a termination described in this
clause 5(d)(i) occurs upon, prior to and either at the direction of a third party or
otherwise in connection with, or during the 24-month period after, the occurrence of a
Change in Control, the amount set forth in this clause 5(d)(i) above shall be paid in a lump
sum within 14 days after the date on which the Release Requirements are satisfied provided
such Change in Control also constitutes a change in the ownership or effective control of
the Company or a sale of a substantial portion of the assets of the Company, in accordance
with the requirements of section 409A(a)(2)(A)(v) of the Code and Treasury Regulation
Section 1.409A-3(i)(5) (or any successor provision) thereunder. If the Release Requirements
may be satisfied in more than one calendar year, payments hereunder will be made or begin in
the later year.

          (ii) The Executive shall receive continuation of coverage under the medical and dental
plans and arrangements of the Company in which the Executive was participating at the time
of his termination of employment for 24 months following the Date of Termination; provided
that in no event shall the benefits provided (or made available) with respect to any medical
or dental plan or arrangement under this clause

11

 

5(d)(ii) be materially less favorable to the Executive than the benefits most favorable
to the Executive that are provided (or were available) during the one-year period prior to
such termination of employment.

          (iii) Payment of $12,000 in a lump sum amount within 30 days after the date of
execution of the release specified in clause 5(d)(i) hereof in lieu of providing the
continuation for the Severance Period of benefits under welfare benefit plans of the
Company, other than medical and dental plans, in which the Executive participates.

          (iv) Payment of a bonus pursuant to subparagraph 3(b) for the fiscal year in which the
Date of Termination occurs based on actual performance for such full fiscal year under the
applicable bonus plan, determined solely by the achievement of those corporate financial
goals and objectives established for the corporate-level senior managers of the Company,
including the Executive (and not upon the achievement of any additional operating, strategic
or other goals or objectives established only for the Executive, and without the exercise of
any negative discretion), multiplied by a fraction, the numerator of which is the number of
days that the Executive was employed by the Company during such fiscal year, and the
denominator of which is 365 Any prorated bonus payable pursuant to this clause 5(d)(iv)
shall be payable at the time that bonuses are payable to senior managers of the Company
generally for such fiscal year (and not later than March 15 following the year in which the
Date of Termination occurs).

          (v) Payment or grant of a pro rata portion of the Incentive Award pursuant to
subparagraph 3(d) for the calendar year in which the Date of Termination occurs determined
by multiplying $7,500,000 by a fraction, the numerator of which is the number of days that
the Executive was employed by the Company during such calendar year, and the denominator of
which is 365. Any prorated Incentive Award payable pursuant to this clause 5(d)(v) shall be
payable and/or granted on the Date of Termination.

The foregoing provisions of this subparagraph 5(d) to the contrary notwithstanding, if on the Date
of Termination the Executive is a specified employee (within meaning of Treasury Regulation Section
1.409A-1(i)), to the minimum extent required to satisfy section 409A(a)(2)(B)(i) of the Code and
Treasury Regulations thereunder, the Executive shall not receive any separation payments or
benefits under subparagraph 5(d) during the 6-month period immediately following the Date of
Termination. During such 6-month period, to the minimum extent required (if at all so required) to
satisfy section 409A of the Code and the Treasury Regulations thereunder, the Executive shall pay
to the Company the additional premiums not otherwise payable by the Executive under clause 5(d)(ii)
required to continue benefits. The amount of separation payments or benefits that would have been
payable to the Executive under this subparagraph 5(d) during the 6-month period following the Date
of Termination plus any amount paid by the Executive to continue benefits shall be paid to the
Executive on the first regular payroll date following the expiration of such 6-month period
together with interest thereon at the short-term applicable federal rate in effect under section
1274(d) of the Code on the Date of Termination. With respect to payments under this Agreement, for
purposes of Section 409A of the Code, each payment will be considered one of a series of separate
payments.

12

 

          (e) Except as may be otherwise specifically provided in an amendment of this subparagraph 5(e)
adopted in accordance with paragraph 17, the Executive’s rights under this paragraph 5, and under
paragraphs 3(c) and 3(d), shall be in lieu of any benefits that may be otherwise payable to or on
behalf of the Executive pursuant to the terms of any severance pay arrangement of the Company or
any Subsidiary or any other, similar arrangement of the Company or any Subsidiary providing
benefits upon involuntary termination of employment.

     6. Duties on Termination. Subject to the terms and conditions of this Agreement,
during the period beginning on the date of delivery of a Notice of Termination, and ending on the
Date of Termination, the Executive shall continue to perform his duties as set forth in this
Agreement, and shall also perform such services for the Company as are necessary and appropriate
for a smooth transition to the Executive’s successor, if any. Notwithstanding the foregoing
provisions of this paragraph 6, following the delivery of a Notice of Termination providing for the
Executive’s resignation, or delivery by the Company of a Notice of Termination providing for the
Executive’s termination of employment for any reason, the Company may accelerate the Date of
Termination by written notice to the Executive.

     7. Mitigation; No Offset. The Executive shall not be required to mitigate the amount
of any payment provided for in this Agreement by seeking other employment. Notwithstanding the
foregoing, if, following the Date of Termination, the Executive, through subsequent employment or
service, becomes eligible to receive any employee benefit that is comparable to an employee benefit
being provided to the Executive by the Company pursuant to paragraph 5(d)(ii) hereof, the Company’s
obligation to continue to provide such employee benefit to the Executive pursuant to paragraph
5(d)(ii) shall cease. As soon as practicable after the Executive becomes eligible for any such
employee benefit, he shall notify the Company in writing of such eligibility. Except as provided
in accordance with paragraph 3(g), the Company shall not be entitled to set off against the amounts
payable to the Executive under this Agreement any amounts owed to the Company by the Executive, any
amounts earned by the Executive in other employment after termination of his employment with the
Company, or any amounts which might have been earned by the Executive in other employment had he
sought such other employment.

     8. Confidential Information. The Executive agrees that, during the Agreement Term,
and at all times thereafter:

          (a) Except as may be required by the lawful order of a court or agency of competent
jurisdiction, except as necessary to carry out his duties to the Company and its Subsidiaries, or
except to the extent that the Executive has express authorization from the Company, the Executive
agrees to keep secret and confidential indefinitely, all Confidential Information, and not to
disclose the same, either directly or indirectly, to any other person, firm, or business entity, or
to use it in any way.

          (b) To the extent that any court or agency seeks to have the Executive disclose Confidential
Information, he shall promptly inform the Company, and he shall take such reasonable steps to
prevent disclosure of Confidential Information until the Company has been informed of such
requested disclosure, and the Company has an opportunity to respond to such court or agency. To
the extent that the Executive obtains information on behalf of the Company

13

 

or any of the Subsidiaries that may be subject to attorney-client privilege as to the
Company’s attorneys, the Executive shall take reasonable steps to maintain the confidentiality of
such information and to preserve such privilege.

          (c) Nothing in the foregoing provisions of this paragraph 8 shall be construed so as to
prevent the Executive from using, in connection with his employment for himself or an employer
other than the Company or any of the Subsidiaries, knowledge which was acquired by him during the
course of his employment with the Company and the Subsidiaries, and which is generally known to
persons of his experience in other companies in the same industry.

          (d) For purposes of this Agreement, the term “Confidential Information” shall include all
non-public information (including, without limitation, information regarding litigation and pending
litigation) concerning the Company and the Subsidiaries which was acquired by or disclosed to the
Executive during the course of his employment with the Company, or during the course of his
consultation with the Company following his Date of Termination (regardless of whether consultation
is pursuant to paragraph 10 hereof).

          (e) This paragraph 8 shall not be construed to unreasonably restrict the Executive’s ability
to disclose confidential information in an arbitration proceeding or a court proceeding in
connection with the assertion of, or defense against any claim of breach of this Agreement in
accordance with paragraph 24. If there is a dispute between the Company and the Executive as to
whether information may be disclosed in accordance with this subparagraph 8(e) the matter shall be
submitted to the arbitrators or the court (whichever is applicable) for decision.

     9. Noncompetition; Nonsolicitation.

          (a) During the Restricted Period (as defined below) the Executive will not, without the
Company’s prior written consent, directly or indirectly, for the Executive’s own account or for or
on behalf of any other person or entity, whether an officer, director, employee, partner,
consultant or otherwise, engage or participate in, directly or indirectly, alone or as principal,
agent, employee, employer, consultant, investor or partner of, or assist in the management of, or
provide advisory or other services to, or own any stock or any other ownership interest in, or make
any financial investment in, any business or entity which is Competitive with the Company (as
defined below) or purchase any property which could reasonably be used to provide or develop a
business that is Competitive with the Company. For purposes of this Agreement:

          (i) With respect to this subparagraph 9(a), the term “Restricted Period” means the
period during which the Executive is employed by the Company and, irrespective of whether
the Executive’s employment is terminated prior to, on or after December 31, 2011, if such
termination of employment is due to any reason other than (x) a termination by the Company
without Cause or (y) a termination by the Executive for Good Reason, the Restricted Period
will continue during the period commencing on the date of the Executive’s termination of
employment and ending on the first anniversary of such termination of employment.

14

 

          (ii) A business or entity shall be considered “Competitive with the Company” if it
engages in any of the businesses in which the Company or any of its affiliates engages,
including the business of providing distribution facilities or services, the acquisitions of
properties for such purpose and the design of business strategies for such purpose. For
purposes of the portion of the Restricted Period following the Executive’s termination of
employment, the businesses in which the Company or any of its affiliates engages shall be
determined as of the Executive’s termination of employment.

          (iii) For periods after the Executive’s termination of employment, a business entity
shall not be considered “Competitive with the Company” (as defined in clause (ii) above) for
purposes of this Agreement if it builds anything other than industrial warehouses or
acquires property for purposes of developing anything other than industrial warehouses and
the Executive’s investment in such business or entity does not exceed $10,000,000 with
respect to any one transaction or $20,000,000 in the aggregate for all transactions for the
portion of the Restricted Period following his Date of Termination.

          (b) While the Executive is employed by the Company or any entity controlled by the Company and
for a period of one year after the date the Executive terminates employment for any reason, the
Executive covenants and agrees that he will not, whether for himself or for any other person,
business, partnership, association, firm, company or corporation, initiate contact with, solicit,
divert or take away any of the customers (entities or individuals from which the Company or any
entity controlled by the Company receives payment for services) of the Company or entity controlled
by the Company or employees of the Company or any entity controlled by the Company, provided such
customer or employee (i) was a customer or employee of the Company or any entity controlled by the
Company during the Executive’s employment with the Company and (ii is a customer or employee of the
Company of any entity controlled by the Company and at the time of such initiation, solicitation or
diversion.

     10. Standstill. The Executive agrees that, for the 12-month period immediately
following his Date of Termination and provided the Company timely makes the payments described in
subparagraph 10(c), without the consent of the Company:

          (a) the Executive will not, and will cause each of his affiliates and his respective
Representatives (as defined below) not to, for or on behalf of the Executive, singly or as part of
a group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended), directly or indirectly: (i) in any manner acquire or propose to acquire in excess of 5%
of the voting securities of the Company or material assets of the Company or any rights to acquire
in excess of 5% of such voting securities or any such material assets (other than upon the exercise
of options or vesting of other awards granted by the Company on or prior to the Date of
Termination), (ii) participate in any solicitation of proxies or become a participant in any
election contest with respect to the Company or any of its subsidiaries, (iii) form, join or in any
way participate in a group with respect to any voting securities of the Company or any of its
subsidiaries, (iv) act in concert with any other entity with respect to any voting securities or
otherwise act, alone or in concert with others, to seek or offer to control or influence, in any
manner, the management, Board or policies of the Company or any of its subsidiaries, (v)

15

 

communicate with stockholders of the Company or any of its subsidiaries with regard to any of
the foregoing, or (vi) advise, assist or encourage any other person in connection with any of the
foregoing; or

          (b) unless specifically invited in writing by the Company, the Executive will not, and will
cause each of his Representatives not to make any public announcement with respect to (i) any form
of merger, tender or exchange offer, consolidation, business combination, recapitalization,
liquidation, dissolution, change of control or other similar transaction with respect to the
Company or any of its subsidiaries, (ii) any request to amend, waive or terminate the provisions of
this paragraph 10 or (iii) any proposal or other statement inconsistent with the terms of this
paragraph 10. For purposes of this paragraph 10, the term “Representatives” includes the
Executive’s agents, advisors or any other person or entity acting on behalf of the Executive in
connection with any prohibited activity under subparagraph 10(a) (including, without limitation,
attorneys, accountants, consultants, bankers, financial advisors and any representatives of his
advisors).

          (c) In consideration of the Executive’s agreement and compliance with the provisions of this
paragraph 10, the Company shall pay to the Executive an amount equal to his annual Salary as in
effect immediately prior to his Date of Termination, which amount shall be paid in substantially
equal installments over the one-year period immediately following the Date of Termination in
accordance with the normal payroll practices of the Company .

     11. Assistance with Claims. The Executive agrees that, for the period beginning on
the Effective Date and continuing for a reasonable period after the Executive’s termination of
employment, the Executive will assist the Company and the Subsidiaries in defense of any claims
that may be made against the Company and the Subsidiaries, and will assist the Company and the
Subsidiaries in the prosecution of any claims that may be made by the Company or the Subsidiaries,
to the extent that such claims may relate to services performed by the Executive for the Company
and the Subsidiaries. The Executive agrees to promptly inform the Company if he becomes aware of
any lawsuits involving such claims that may be filed against the Company or any Subsidiary. The
Company agrees to provide legal counsel to the Executive in connection with such assistance (to the
extent legally permitted), and to reimburse the Executive for all of the Executive’s reasonable
out-of-pocket expenses associated with such assistance, including travel expenses and reasonable
legal expenses. The Executive shall choose his legal counsel in his reasonable sole discretion.
For periods after the Executive’s employment with the Company terminates, the Company agrees to
provide reasonable compensation to the Executive for such assistance. The Executive also agrees to
promptly inform the Company if he is asked to assist in any investigation of the Company or the
Subsidiaries (or their actions) that may relate to services performed by the Executive for the
Company or the Subsidiaries, regardless of whether a lawsuit has then been filed against the
Company or the Subsidiaries with respect to such investigation.

     12. Nondisparagement.

          (a) The Executive agrees that he shall not directly (or through any other person or entity)
make any public or private statement (whether oral or in writing) that is derogatory or damaging to
the Company or any of its Subsidiaries or affiliates, including, but not limited to, their
businesses, activities, operations, affairs, products, services, reputation or

16

 

prospects or any of their officers, employees or directors; provided, however, that this
paragraph 12(a) shall not prevent the Executive from having any communications with his immediate
family or his financial and tax advisors, accountants or attorneys or from giving testimony
pursuant to compulsory process of law.

          (b) The Company agrees that the executive officers, members of the Board and management-level
human resources employees of the Company shall not directly (or through any other person or entity)
make any public statement or any statement to a third party (whether oral or written) that is
derogatory or damaging to the Executive or his business reputation; provided, however, that this
subparagraph 12(b) shall not (i) prevent such executive officers, members of the Board or
management-level human resources employees of the Company from having any communications with one
another or with their legal or professional advisors, or (ii) prevent the Company or any of its
representatives from making disclosure that may be required under any applicable law, regulation or
rule, including any rule of any securities exchange upon which any securities of the Company are
listed, or giving testimony that may be required before any tribunal or administrative agency or
pursuant to compulsory process of law or other applicable law.

     13. Equitable Remedies. The Executive acknowledges that the Company would be
irreparably injured by a violation of paragraphs 8, 9 or 10 hereof and he agrees that the Company,
in addition to any other remedies available to it for such breach or threatened breach, shall be
entitled to a preliminary injunction, temporary restraining order, or other equivalent relief,
restraining the Executive from any actual or threatened breach of any of paragraphs 8, 9 or 10. If
a bond is required to be posted in order for the Company to secure an injunction or other equitable
remedy, the parties agree that said bond need not be more than a nominal sum.

     14. Nonalienation. Except as otherwise required by law, the interests of the
Executive under this Agreement are not subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Executive
or the Executive’s beneficiary.

     15. Withholding. All payments and benefits under this Agreement are subject to
withholding of all applicable taxes.

     16. Directors and Officers Insurance. The Executive shall be named as an insured and
covered against the same claims and at the same level of insurance under the Directors and Officers
insurance purchased by the Company for members of the Board.

     17. Indemnity. To the maximum extent permitted by all of applicable law, the Amended
and Restated Declaration of Trust of the Company and the Amended and Restated Bylaws of the Company
(in the case of such Declaration of Trust and Bylaws, as in effect on the date hereof), the Company
shall indemnify the Executive against, and shall pay and advance to the Executive, all expenses,
including, without limitation, attorneys’ fees, disbursements and retainers, accounting and witness
fees, travel and deposition costs, expenses of investigations, judicial or administrative
proceedings and appeals, amounts paid in settlement by the Executive or on behalf of the Executive,
actually incurred by the Executive in connection with any threatened, pending or completed claim,
action, suit or proceeding, formal or informal, whether

17

 

brought in the right of the Company or otherwise and whether of a civil, criminal,
administrative or investigative nature, by reason of the fact that the Executive was serving as a
director, officer, employee or agent of the Company or its affiliates or was serving at the
Company’s request as a director, officer, employee, or agent of another corporation, limited
liability company, partnership, joint venture, trust, or other enterprise; provided, however, that
the Company shall not be required to advance any such amounts to the Executive unless the Executive
furnishes to the Company a written undertaking reasonably satisfactory to the Company to repay to
the Company all amounts to be advanced to the Executive by the Company in the event that it is
determined in accordance with this paragraph 17 that the Executive is not entitled to any
indemnification pursuant to this paragraph 17.

     18. Amendment. This Agreement may be amended or cancelled only by mutual agreement of
the parties in writing without the consent of any other person. So long as the Executive lives, no
person, other than the parties hereto, shall have any rights under or interest in this Agreement or
the subject matter hereof. In the event of the Executive’s death prior to the date that the
Executive receives payment of all amounts due and payable to the Executive under this Agreement,
such amounts shall be paid to the Executive’s estate. Without limiting the generality of the
foregoing, it is the intent of the parties that all payments hereunder comply with the requirements
of section 409A of Code and applicable guidance issued thereunder and that this Agreement shall be
interpreted in accordance with such intent. To the extent applicable, this Agreement shall be
amended as the parties deem necessary or appropriate to comply with the requirements of section
409A and applicable guidance issued thereunder in a manner that preserves to the extent possible
the intended benefits of this Agreement for the parties.

     19. Applicable Law. The provisions of this Agreement shall be construed in accordance
with the laws of the State of Colorado, without regard to the conflict of law provisions of any
state.

     20. Severability. The invalidity or unenforceability of any provision of this
Agreement will not affect the validity or enforceability of any other provision of this Agreement,
and this Agreement will be construed as if such invalid or unenforceable provision were omitted
(but only to the extent that such provision cannot be appropriately reformed or modified).

     21. Waiver of Breach. No waiver by any party hereto of a breach of any provision of
this Agreement by any other party, or of compliance with any condition or provision of this
Agreement to be performed by such other party, will operate or be construed as a waiver of any
subsequent breach by such other party of any similar or dissimilar provisions and conditions at the
same or any prior or subsequent time. The failure of any party hereto to take any action by reason
of such breach will not deprive such party of the right to take action at any time while such
breach continues.

     22. Successors. This Agreement shall be binding upon, and inure to the benefit of,
the Company and its successors and assigns and upon any person acquiring, whether by merger,
consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets
and business , and the successor shall be substituted for the Company under this Agreement.

18

 

     23. Notices. Notices and all other communications provided for in this Agreement
shall be in writing and shall be delivered personally or sent by registered or certified mail,
return receipt requested, postage prepaid (provided that international mail shall be sent via
overnight or two-day delivery), or sent by prepaid overnight courier to the parties at the
addresses set forth below (or such other addresses as shall be specified by the parties by like
notice). Such notices, demands, claims and other communications shall be deemed given:

          (a) in the case of delivery by overnight service with guaranteed next day delivery, the next
day or the day designated for delivery;

          (b) in the case of certified or registered U.S. mail, 5 days after deposit in the U.S. mail;
or

provided, however, that in no event shall any such communications be deemed to be given later than
the date they are actually received. Communications that are to be delivered by the U.S. mail or by
overnight service or two-day delivery service are to be delivered to the addresses set forth below:

          to the Company:

          4545 Airport Way

          Denver, CO 80239

          Attn: General Counsel

          or to the Executive:

          To his last address shown on the payroll records of the Company

     All notices to the Company shall be directed to the attention of the General Counsel of the
Company, with a copy to the Secretary of the Company. Each party, by written notice furnished to
the other party, may modify the applicable delivery address, except that notice of change of
address shall be effective only upon receipt.

     24. Arbitration of All Disputes. Except as otherwise provided in paragraph 12, any
controversy or claim arising out of or relating to this Agreement (or the breach thereof) shall be
settled by final, binding and non-appealable arbitration in Colorado by three arbitrators. Except
as otherwise expressly provided in this paragraph 24, the arbitration shall be conducted in
accordance with the Commercial Rules of the American Arbitration Association (the “Association”)
then in effect. One of the arbitrators shall be appointed by the Company, one shall be appointed by
the Executive, and the third shall be appointed by the first two arbitrators. If the first two
arbitrators cannot agree on the third arbitrator within 30 days of the appointment of the second
arbitrator, then the third arbitrator shall be appointed by the Association. Judgment on the award
rendered by the arbitrators may be entered in any court having jurisdiction thereof. The
arbitrators shall have the authority to award any remedy or relief that a court of competent
jurisdiction could order or grant, including, without limitation, the issuance of an injunction.
However, either party may, without inconsistency with this arbitration provision, apply to any
court having jurisdiction over such dispute or controversy and seek interim provisional, injunctive
or other equitable relief until the arbitration award is rendered or the controversy is

19

 

otherwise resolved. Except as necessary in court proceedings to enforce this arbitration
provision or an award rendered hereunder, to obtain interim relief or as otherwise required by law,
neither a party nor an arbitrator may disclose the existence, content or results of any arbitration
hereunder without the prior written consent of the Company and the Executive. The Company and the
Executive acknowledge that this Agreement evidences a transaction involving interstate commerce.
Notwithstanding any choice of law provision included in this Agreement, the United States Federal
Arbitration Act shall govern the interpretation and enforcement of this arbitration provision.

     25. Legal and Enforcement Costs. The provisions of this paragraph 25 shall apply if
it becomes necessary or desirable for the Executive to retain legal counsel or incur other costs
and expenses in connection with any proceeding to enforce any or all of his rights under this
Agreement:

          (a) Subject to paragraph 25(d) hereof, the Executive shall be entitled to recover from the
Company reasonable attorneys’ fees, costs and expenses incurred by him in connection with such
enforcement, provided that the Executive shall only be reimbursed for attorneys’ fees, costs or
expenses incurred after, or during the 10 day period preceding, written notice to the Company that
he intends to seek recovery from the Company under this paragraph 25.

          (b) The Company shall advance to the Executive (or directly to the Executive’s attorneys)
reasonable attorneys’ fees, experts’ fees, costs and expenses incurred by the Executive in
accordance with this paragraph 25 following submission by the Executive to the Company in
accordance with paragraph 26 hereof of appropriate documentation (redacted for privilege, if
appropriate) evidencing the incurrence of such attorneys’ fees, costs and expenses; provided,
however, that the Company shall not be required to advance any such amounts to the Executive unless
the Executive furnishes to the Company a written undertaking reasonably satisfactory to the Company
to repay to the Company all amounts to be advanced to the Executive by the Company in the event
that it is determined in accordance with paragraph 25(d) hereof that the Executive is not entitled
to recover such attorneys’ fees, costs or expenses from the Company.

          (c) The Executive shall be entitled to select his legal counsel; provided, however, that such
right of selection shall not affect the requirement that any costs and expenses reimbursable under
this paragraph 25 be reasonable.

          (d) Respecting any proceeding under paragraph 12 or 24, if the Executive is not successful on
the merits of at least one material issue in dispute in such proceeding or to the extent that the
arbitrators in such proceeding shall determine that under the circumstances recovery by the
Executive of all or a part of any such fees and costs and expenses would be unjust or
inappropriate, the Executive shall not be entitled to such recovery; and to the extent that such
amounts shall have been recovered by the Executive previously, the Executive shall repay such
amounts to the Company. If the Executive initiated such proceeding and is successful on the merits
of at least one material issue in dispute in such proceeding, but is not successful on the merits
of all material issues set forth in the Executive’s demand for arbitration in such proceeding, the
Executive shall be entitled to a pro rata portion of such attorneys’ fees, costs and

20

 

expenses based upon the ratio of the amount in controversy with respect to which the Executive
was successful in such proceeding to the total amount in controversy pursuant to the Executive’s
demand for arbitration in such proceeding, unless the arbitrators in such proceeding shall
determine that under the circumstances that recovery by the Executive of such lesser amount of the
Executive’s fees, costs and expenses would be unjust or inappropriate.

     26. Payment of Reimbursable Expenses. Any reimbursement (including any reimbursement
under paragraph 11 or advancement under paragraph 17) payable to the Executive pursuant to this
Agreement shall be conditioned on the submission by the Executive of all expense reports (or
invoices with respect to any advancement under paragraph 17) reasonably required by the Company
under any applicable expense reimbursement policy, and shall be paid to the Executive within 30
days following receipt of such expense reports (or invoices redacted for privilege as may be
appropriate), but in no event later than the last day of the calendar year following the calendar
year in which the Executive incurred the reimbursable expense. Any amount of expenses eligible for
reimbursement during a calendar year shall not affect the expenses eligibility for reimbursement
during any other calendar year. The right to reimbursement pursuant to this Agreement shall not be
subject to liquidation or exchange for any other benefit.

     27. Survival of Agreement. Except as otherwise expressly provided in this Agreement,
the rights and obligations of the parties to this Agreement, including, without limitation, the
rights and obligations pursuant to subparagraph 3(f) and paragraph 5 hereof, shall survive the
termination of the Executive’s employment with the Company. Notwithstanding any other provision of
this Agreement, unless otherwise expressly agreed to in writing by the Company, the respective
obligations of the parties contained in paragraphs 5, 7, 8, 9, 10, 11, 12, 16, 17, 25, 26, 30, this
paragraph 27, and clauses 3(d)(ii) and 3(d)(iii), as well as all earned and vested amounts and
benefits hereunder, shall survive the termination of the Executive’s employment with the Company,
the end of the Agreement Term and any termination of this Agreement.

     28. Entire Agreement. Except as otherwise noted herein or in any separation agreement
subsequently entered into by the Executive and the Company, this Agreement, including any
Exhibit(s) attached hereto, constitutes the entire agreement between the parties concerning the
subject matter hereof and supersedes all prior and contemporaneous agreements between the parties
relating to the subject matter hereof, including, without limitation, the Executive Protection
Agreement, dated as of March 15, 2005, the Confidentiality and Noncompetition Agreement, dated as
of September 8, 1997, the Indemnification Agreement dated September 2, 1996, the Amended and
Restated Employment Agreement dated February 6, 2008, and the Prior Employment Agreement in each
case between the Company and the Executive (collectively the “Prior Agreements”), and the Prior
Agreements are hereby terminated and shall be of no further force or effect. Notwithstanding the
foregoing, in no event shall this Agreement have the effect of accelerating into 2008 any payment
or benefit which would have otherwise been provided under the Prior Agreements in a later year or
deferring to a year after 2008 any payment or benefit which would otherwise have been provided
under the Prior Agreements in 2008, in any case, to the extent that such payment or benefit is
subject to section 409A of the Code.

21

 

     29. Counterparts. This Agreement may be executed in two counterparts, each of which
shall be deemed to be an original but both of which together will constitute one and the same
instrument. One or more counterparts of this Agreement may be delivered by facsimile, with the
intention that delivery by such means shall have the same effect as delivery of an original
counterpart thereof.

     30. Make-Whole Payments. The following shall apply with respect to amounts payable to
or on behalf of the Executive relating to any Change in Control that occurs after the Effective
Date:

          (a) Subject to the following provisions of this paragraph 30, if any payment or benefit to
which the Executive is entitled from the Company, any affiliate, or trusts established by the
Company or by any affiliate (a “Payment”) is subject to any tax under section 4999 of the Code, or
any similar federal or state law (an “Excise Tax”), the Company shall pay to the Executive an
additional amount (the “Make-Whole Amount”) which is equal to (i) the amount of the Excise Tax,
plus (ii) the aggregate amount of any interest, penalties, fines or additions to any tax which are
imposed in connection with the imposition of such Excise Tax, plus (iii) all income, excise and
other applicable taxes imposed on the Executive under the laws of any Federal, state or local
government or taxing authority by reason of the payments required under clause (i) and clause (ii)
and this clause (iii). Notwithstanding the foregoing provisions of this subparagraph 30(a), if it
shall be determined that the Executive is entitled to a Make-Whole Amount, but that the Executive,
after taking into account the Payments and the Make-Whole Amount, would not receive a net after-tax
benefit (taking into account both income taxes and any Excise Tax) which is at least ten percent
(10%) greater than the net after-tax proceeds to the Executive resulting from an elimination of the
Make-Whole Amount and a reduction of the Payments, in the aggregate, to an amount (the “Reduced
Amount”) that is one dollar less than the smallest amount that would give rise to any Excise Tax,
then no Make-Whole Amount shall be paid to the Executive and the Payments, in the aggregate, shall
be reduced to the Reduced Amount.

          (b) For purposes of determining the Make-Whole Amount, the Executive shall be deemed to be
taxed at the highest marginal rate under all applicable local, state, federal and foreign income
tax laws for the year in which the Make-Whole Amount is paid. The Make-Whole Amount payable with
respect to an Excise Tax shall be paid by the Company within 60 days following the Payment with
respect to which such Excise Tax relates.

          (c) All calculations under this paragraph 30 shall be made initially by the Company and the
Company shall provide prompt written notice thereof to the Executive to enable the Executive to
timely file all applicable tax returns. Upon request of the Executive, the Company shall provide
the Executive with sufficient tax and compensation data to enable the Executive or his tax advisor
to independently make the calculations described in paragraph 30(b) above and the Company shall
reimburse the Executive for reasonable fees and expenses incurred for any such verification.

          (d) If the Executive gives written notice to the Company of any objection to the results of
the Company’s calculations within 60 days of the Executive’s receipt of written notice thereof, the
dispute shall be referred for determination to tax counsel selected by the

22

 

independent auditors of the Company (“Tax Counsel”). The Company shall pay all fees and
expenses of such Tax Counsel. Pending such determination by Tax Counsel, the Company shall pay the
Executive the Make-Whole Amount as determined by it in good faith. The Company shall pay the
Executive any additional amount determined by Tax Counsel to be due under this paragraph 30
(together with interest thereon at a rate equal to the short-term applicable federal rate
determined under section 1274(d) of the Code) promptly after such determination, but in no event
later than the end of the calendar year next following the calendar year in which the applicable
tax is remitted to the Tax Authority, as defined in paragraph 30(e) hereof.

          (e) The determination by Tax Counsel shall be conclusive and binding upon all parties unless
the Internal Revenue Service, a court of competent jurisdiction, or such other duly empowered
governmental body or agency (a “Tax Authority”) determines that the Executive owes a greater or
lesser amount of Excise Tax with respect to any Payment than the amount determined by Tax Counsel.

          (f) If a Taxing Authority makes a claim against the Executive which, if successful, would
require the Company to make a payment under this paragraph 30, the Executive agrees to contest the
claim on request of the Company subject to the following conditions:

          (i) The Executive shall notify the Company of any such claim within 10 days of becoming
aware thereof. In the event that the Company desires the claim to be contested, it shall
promptly (but in no event more than 30 days after the notice from the Executive or such
shorter time as the Taxing Authority may specify for responding to such claim) request the
Executive to contest the claim. The Executive shall not make any payment of any tax which
is the subject of the claim before the Executive has given the notice or during the 30-day
period thereafter unless the Executive receives written instructions from the Company to
make such payment together with an advance of funds sufficient to make the requested payment
plus any amounts payable under this paragraph 30 determined as if such advance were an
Excise Tax, in which case the Executive will act promptly in accordance with such
instructions.

          (ii) If the Company so requests, the Executive will contest the claim by either paying
the tax claimed and suing for a refund in the appropriate court or contesting the claim in
the United States Tax Court or other appropriate court, as directed by the Company;
provided, however, that any request by the Company for the Executive to pay the tax shall be
accompanied by an advance from the Company to the Executive of funds sufficient to make the
requested payment plus any amounts payable under this paragraph 30 determined as if such
advance were an Excise Tax. If directed by the Company in writing the Executive will take
all action necessary to compromise or settle the claim, but in no event will the Executive
compromise or settle the claim or cease to contest the claim without the written consent of
the Company; provided, however, that the Executive may take any such action if the Executive
waives in writing his right to a payment under this paragraph 30 for any amounts payable in
connection with such claim. The Executive agrees to cooperate in good faith with the
Company in contesting the claim and to comply with any reasonable request from the Company
concerning the contest of the claim, including the pursuit of administrative remedies, the
appropriate

23

 

forum for any judicial proceedings, and the legal basis for contesting the claim. Upon
request of the Company, the Executive shall take appropriate appeals of any judgment or
decision that would require the Company to make a payment under this paragraph 30. Provided
that the Executive is in compliance with the provisions of this clause 30(f)(ii), the
Company shall be liable for and indemnify the Executive against any loss in connection with,
and all costs and expenses, including attorney’s fees, which may be incurred as a result of,
contesting the claim, and shall provide to the Executive within 30 days after each written
request therefor by the Executive cash advances or reimbursement for all such costs and
expenses actually incurred or reasonably expected to be incurred by the Executive as a
result of contesting the claim.

          (iii) Should a Tax Authority finally determine that an additional Excise Tax is owed,
then the Company shall pay an additional Make-Up Amount to the Executive in a manner
consistent with this paragraph 30 with respect to any additional Excise Tax and any assessed
interest, fines, or penalties. If any Excise Tax as calculated by the Company or Tax
Counsel, as the case may be, is finally determined by a Tax Authority to exceed the amount
required to be paid under applicable law, then the Executive shall repay such excess to the
Company within 30 days of such determination; provided that such repayment shall be reduced
by the amount of any taxes paid by the Executive on such excess which is not offset by the
tax benefit attributable to the repayment.

     IN WITNESS THEREOF, the Executive has hereunto set his hand, and the Company has caused these
presents to be executed in its name and on its behalf, all as of the Effective Date.

	 	 	 	 	 
	 	PROLOGIS

 	 
	 	By:  	/s/ Stephen L. Feinberg
 	 
	 	Name:	Stephen L. Feinberg 	 
	 	Chairman of the Board of Trustees 	 
	 
	 	 	 
	 	/s/ Walter C. Rakowich
 	 
	 	Walter C. Rakowich 	 
	 	 	 

24

 

	 	 	 	 	 

EXHIBIT A

AGREEMENT AND GENERAL RELEASE

     THIS AGREEMENT AND GENERAL RELEASE (this “Agreement” or this “Release”) is made and entered
into as of this ___  day of ___, ___, by and between ProLogis (“ProLogis”), and Walter C.
Rakowich (the “Executive”).

     FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

     1. Termination of Employment. ProLogis and the Executive agree that the Executive’s
employment with ProLogis will cease, effective on ___, which shall be referred to
herein as the “Termination Date.” The Executive’s participation in all ProLogis benefit plans will
cease on the Termination Date, except as otherwise expressly provided in the Employment Agreement,
dated March 14, 2008, between ProLogis and the Executive (the “Employment Agreement”), or as
otherwise specifically provided under the applicable plan. In addition, the Executive’s current
ProLogis email and telephone accounts will remain active and useable by the Executive until the
Termination Date. The Executive further agrees that he will not hereafter seek reinstatement,
recall or reemployment with ProLogis.

     2. Severance Payments and Benefits. The Executive shall receive the severance
payments and benefits to which he is entitled pursuant to the Employment Agreement in accordance
with the terms and subject to the conditions thereof, which are summarized on the Schedule attached
hereto.

     3. General Release. In consideration of the payments to be made by ProLogis to the
Executive in Paragraph 2 above, the Executive, with full understanding of the contents and legal
effect of this Release and having the right and opportunity to consult with his counsel, releases
and discharges ProLogis, its officers, directors, board members, supervisors, managers, employees,
agents, representatives, attorneys, divisions, subsidiaries and affiliates, and all related
entities of any kind or nature, and its and their predecessors, successors, heirs, executors,
administrators, and assigns (collectively, the “ProLogis Released Parties”) from any and all
claims, actions, causes of action, grievances, suits, charges, or complaints of any kind or nature
whatsoever, that he ever had or now has, whether fixed or contingent, liquidated or unliquidated,
known or unknown, suspected or unsuspected, and whether arising in tort, contract, statute, or
equity, before any federal, state, local, or private court, agency, arbitrator, mediator, or other
entity, regardless of the relief or remedy. Without limiting the generality of the foregoing, it
being the intention of the parties to make this Release as broad and as general as the law permits,
this Release specifically includes any and all subject matters and claims arising from any alleged
violation by the Released Parties under the Age Discrimination in Employment Act of 1967, as
amended; Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1866, as
amended by the Civil Rights Act of 1991 (42 U.S.C. § 1981); the Rehabilitation Act of 1973, as
amended; the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); the Colorado
Anti-Discrimination Act, and other similar state or local laws; the Americans with Disabilities
Act; the Worker Adjustment and Retraining Notification Act; the Equal Pay Act;

C-1

 

Executive Order 11246; Executive Order 11141; and any other statutory claim, employment or
other contract or implied contract claim or common law claim for wrongful discharge, breach of an
implied covenant of good faith and fair dealing, defamation, or invasion of privacy arising out of
or involving his employment with ProLogis, the termination of his employment with ProLogis, or
involving any continuing effects of his employment with ProLogis or termination of employment with
ProLogis. The Executive further acknowledges that he is aware that statutes exist that render null
and void releases and discharges of any claims, rights, demands, liabilities, action and causes of
action which are unknown to the releasing or discharging part at the time of execution of the
release and discharge. The Executive hereby expressly waives, surrenders and agrees to forego any
protection to which he would otherwise be entitled by virtue of the existence of any such statute
in any jurisdiction including, but not limited to, the State of Colorado. The foregoing release
and discharge under this Paragraph 3 to the contrary notwithstanding, the Executive does not
release or discharge any ProLogis Released Party respecting (i) the Executive’s rights to
indemnification and coverage under applicable directors and officers liability insurance pursuant
to paragraphs 17 and 16, respectively, of the Employment Agreement, as well as any rights to
reimbursement or recovery of expenses pursuant to paragraphs 26, and 25, respectively, (ii) all
accrued and vested benefits under all employee pension and welfare benefit plans (within the
meaning of sections 3(1) and 3(2)(A) of ERISA) in which the Executive participated immediately
prior to the Termination Date, (iii) such rights and benefits as may not be released pursuant to
applicable law, or (iv) any rights to continuing payments, vesting or other consideration under
subparagraphs 3(c) or 3(d) or paragraphs 5 or 10 of the Employment Agreement.

     4. Covenant Not to Sue. The Executive agrees not to bring, file, charge, claim, sue
or cause, assist, or permit to be brought, filed, charged or claimed any action, cause of action,
or proceeding regarding or in any way related to any of the claims described in Paragraph 3 hereof,
and further agrees that his Release is, will constitute and may be pleaded as, a bar to any such
claim, action, cause of action or proceeding. If any government agency or court assumes
jurisdiction of any charge, complaint, or cause of action covered by this Release, the Executive
will not seek and will not accept any personal equitable or monetary relief in connection with such
investigation, civil action, suit or legal proceeding.

     5. Severability. If any provision of this Release shall be found by a court to be
invalid or unenforceable, in whole or in part, then such provision shall be construed and/or
modified or restricted to the extent and in the manner necessary to render the same valid and
enforceable, or shall be deemed excised from this Release, as the case may require, and this
Release shall be construed and enforced to the maximum extent permitted by law, as if such
provision had been originally incorporated herein as so modified or restricted, or as if such
provision had not been originally incorporated herein, as the case may be. The parties further
agree to seek a lawful substitute for any provision found to be unlawful; provided, that, if the
parties are unable to agree upon a lawful substitute, the parties desire and request that a court
or other authority called upon to decide the enforceability of this Release modify the Release so
that, once modified, the Release will be enforceable to the maximum extent permitted by the law in
existence at the time of the requested enforcement.

     6. Waiver. A waiver by ProLogis of a breach of any provision of this Release by the
Executive shall not operate or be construed as a waiver or estoppel of any subsequent breach by

C-2

 

the Executive. No waiver shall be valid unless in writing and signed by an authorized officer
of ProLogis.

     7. Return of ProLogis Materials. The Executive represents that he has returned all
ProLogis property and all originals and all copies, including electronic and hard copy, of all
documents, within his possession at the time of the execution of this Agreement, including but not
limited to a laptop computer, printer, cellular phone, keys and credit card. The Executive’s
rolodex (or other tangible or electronic address book) and his cellular telephone number are the
Executive’s personal property.

     8. Representation. The Executive hereby agrees that this Release is given knowingly
and voluntarily and acknowledges that:

          (a) this Agreement is written in a manner understood by the Executive;

          (b) this Release refers to and waives any and all rights or claims that he may have arising
under the Age Discrimination in Employment Act, as amended;

          (c) the Executive has not waived any rights arising after the date of this Agreement;

          (d) the Executive has received valuable consideration in exchange for this Release in addition
to amounts the Executive is already entitled to receive; and

          (e) the Executive has been advised to consult with an attorney prior to executing this
Agreement.

     9. Consideration and Revocation. The Executive is receiving this Agreement on
___, and Executive shall be given twenty one (21) days from receipt of this Agreement
to consider whether to sign the Agreement. The Executive agrees that changes or modifications to
this Agreement do not restart or otherwise extend the above twenty-one (21) day period. Moreover,
the Executive shall have seven (7) days following execution to revoke this Agreement in writing to
[insert title of officer of the Company] and this Agreement shall not take effect until those seven
(7) days have ended.

     10. Amendment. This Release may not be altered, amended, or modified except in
writing signed by both the Executive and ProLogis.

     11. Joint Participation. The parties hereto participated jointly in the negotiation
and preparation of this Release, and each party has had the opportunity to obtain the advice of
legal counsel and to review and comment upon this Release. Accordingly, it is agreed that no rule
of construction shall apply against any party or in favor of any party. This Release shall be
construed as if the parties jointly prepared this Release, and any uncertainty or ambiguity shall
not be interpreted against one party and in favor of the other.

     12. Binding Effect; Assignment. This Agreement and the various rights and obligations
arising hereunder shall inure to the benefit of and be binding upon the parties and their
respective successors, heirs, representatives and permitted assigns. Neither party may

C-3

 

assign its respective interests hereunder without the express written consent of the other
party, except that ProLogis will honor any written instructions about the direction of severance
payments included in the Executive’s will or other estate planning documents.

     13. Applicable Law. This Release shall be governed by, and construed in accordance
with, the laws of the State of Colorado.

     14. Execution of Release. This Release may be executed in two counterparts, each of
which shall be considered an original, but which when taken together, shall constitute one Release.

     PLEASE READ THIS AGREEMENT AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT.
THIS AGREEMENT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS, INCLUDING THOSE UNDER THE
FEDERAL AGE DISCRIMINATION IN EMPLOYMENT ACT, AND OTHER FEDERAL, STATE AND LOCAL LAWS PROHIBITING
DISCRIMINATION IN EMPLOYMENT.

     If the Executive signs this Agreement less than 21 days after he receives it from ProLogis,
he confirms that he does so voluntarily and without any pressure or coercion from anyone at the
ProLogis.

     IN WITNESS WHEREOF, the Executive and PROLOGIS have voluntarily signed this Agreement and
General Release on the date set forth above.

	 	 	 	 	 
	ProLogis	 	Executive
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	Walter C. Rakowich
	 
	 	 	 	 
	 	 	 
	Date

	 	 	 	Date

C-4

 

SCHEDULE

	 	 	 
	Agreement Paragraph	 	Description, $ Amount, Benefit

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]