Document:

exv10w4

 

Exhibit 10.4

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of May 24, 2006, is hereby
entered into by and between Asset Capital Corporation, Inc., a Maryland corporation with its
principal place of business at 4733 Bethesda Avenue, Suite 800, Bethesda, Maryland 20814 (the
“Company”) and Blair D. Fernau, residing at the address set forth on the signature page hereof (the
“Executive”).

     WHEREAS, the Company and the Executive entered into an employment agreement dated as of June
30, 2005; and

     WHEREAS, the Company and the Executive wish to continue such employment relationship and to
amend and restate such employment agreement on the terms set forth below:

     Accordingly, the parties hereto agree as follows:

     1. Term. The Company hereby employs the Executive, and the Executive hereby accepts
such employment, for an initial term commencing as of the date hereof and continuing for a
three-year period following such date, unless sooner terminated in accordance with the provisions
of Section 4 or Section 5; with such term to renew automatically for successive one-year periods
following the initial term in accordance with the terms of this Agreement (subject to termination
as aforesaid) unless either party notifies the other party of non-renewal in writing prior to three
months before the expiration of the initial term and each successive annual renewal term, as
applicable (the period during which the Executive is employed hereunder being hereinafter referred
to as the “Term”).

     2. Duties. During the Term, the Executive shall be employed by the Company as Chief
Investment Officer of the Company, and, as such, the Executive shall faithfully perform

 

 

for the Company the duties of said offices and shall perform such other duties of an
executive, managerial or administrative nature as shall be specified and designated from time to
time by the Chief Executive Officer of the Company (the “Chief Executive Officer”). The Executive
shall devote substantially all of his business time and effort during regular business hours
(excluding Saturdays, Sundays and major holidays) to the performance of his duties hereunder.
Subject to the foregoing, the Company hereby acknowledges that the Executive may engage in the
activities described on Exhibit A hereto.

     3. Compensation.

     3.1. Salary. The Company shall pay the Executive during the Term a salary at a
minimum rate of $325,000 per annum (the “Annual Salary”), in accordance with the customary payroll
practices of the Company applicable to senior executives. The Board periodically shall review the
Executive’s Annual Salary and, after discussion with the Chief Executive Officer, may provide for
such increases therein as it may in its discretion deem appropriate. Any such increased salary
shall constitute the “Annual Salary” as of the time of the increase.

     3.2. Bonus. During the Term, in addition to the Annual Salary, for each fiscal year
of the Company ending during the Term, the Executive shall have the opportunity to receive an
annual bonus (the “Annual Bonus”) in an amount up to 100% of the Annual Salary, with the actual
amount and terms of such Annual Bonus to be determined by the Compensation Committee of the Board.
The Annual Bonus payable with respect to a fiscal year of the Company shall be paid no later than
the fifteenth day of the third month after the end of the fiscal year. Any Annual Bonus payable
for a partial fiscal year (whether because the commencement date of the Term was on a date other
than January 1 or the Date of Termination is on a date other than December 31) shall be pro rated
by multiplying the Annual Bonus amount by a fraction the

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numerator of which is the number of days during the partial fiscal year that the Executive is
or was employed by the Company under this Agreement and the denominator of which is 365. The
forgoing shall not limit the Executive’s eligibility to receive any other bonus under any other
bonus plan, stock option or equity–based plan, or other policy or program that is adopted by the
Compensation Committee of the Board or by the Board itself.

     3.3. Equity Based Awards.

          (a) Equity Incentive Plan. The Company has established the 2005 Equity Incentive Plan
(“Equity Incentive Plan”). Subject to the terms and conditions of the Equity Incentive Plan, the
Executive shall be eligible to participate in the Equity Incentive Plan, and shall be eligible to
receive annual stock option and/or restricted stock awards under the Equity Incentive Plan. The
Compensation Committee shall approve any such awards made to the Executive pursuant to the Equity
Incentive Plan.

          (b) Founders Shares. Upon formation of the Company, the Executive purchased 86,667
shares of the Company’s common stock (the “Founders Shares”) for a purchase price of $0.001 per
share. The Founders Shares shall be subject to forfeiture restrictions that will terminate with
respect to 8.33% of the awarded shares at the end of each quarterly period commencing with the
first full fiscal quarter after the date of grant; provided, however, that all forfeiture
restrictions on outstanding Founders Shares will lapse automatically upon (i) a Change in Control
(as defined herein), (ii) a termination by the Company without Cause (as defined herein), (iii) a
termination by the Executive for Good Reason (as defined herein), (iv) the Executive’s death, (v)
the Disability (as defined below) of the Executive, or (vi) the Company’s failure to renew this
Agreement, and that the Executive will forfeit all Founders Shares with respect to which the
forfeiture restrictions have not terminated if he is

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terminated for Cause or he terminates for other than Good Reason. The Founders Shares will
have voting and dividend rights. Notwithstanding anything to the contrary contained herein, the
Executive agrees that the Company shall redeem 31,912 of the Executive’s Founders Shares (the
“Redemption Shares”) at a redemption price of $0.001 per share within 40 days after the date of
this Agreement; provided, however, that the number of Redemption Shares actually redeemed by the
Company shall be reduced by a number equal to 1% of the number of shares of common stock issued by
the Company pursuant to any exercise by Friedman, Billings, Ramsey & Co., Inc. (“FBR”) of its
additional allotment option under that certain Purchase/Placement Agreement dated June 23, 2005,
among the Company, Asset Capital Partners, L.P. and FBR.

     3.4. Benefits-In General. The Executive shall be permitted during the Term to
participate in any group life, hospitalization or disability insurance plans, health programs,
retirement plans, fringe benefit programs and other benefits that may be available to other senior
executives of the Company generally, in each case to the extent that the Executive is eligible
under the terms of such plans or programs.

     3.5. Disability Insurance. The Company will maintain, at its cost, a renewable
long-term Disability plan that, subject to the terms of such plan and any applicable plans,
policies or programs, provides for the annual payment of not less than 60% of the Executive’s
Annual Salary for so long as any long-term Disability of the Executive continues. In addition, the
Company shall reimburse the Executive the amount of the premiums payable by the Executive with
respect to a personal supplemental long-term disability insurance policy providing for benefits
equal to at least 40% of the Executive’s Annual Salary for so long as any long-term Disability of
the Executive continues.

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     3.6. Directors and Officers Insurance. During the Term and for a period of 24 months
thereafter, the Executive shall be entitled to director and officer insurance coverage for his acts
and omissions while an officer and director of the Company on a basis no less favorable to him than
the coverage provided to current officers and directors.

     3.7. Life Insurance. The Company will purchase a term life insurance policy for the
benefit of the Executive or the Executive’s designated beneficiaries with a death benefit of $3.0
million. The Executive shall be entitled to reimbursement of any income tax that the Executive
incurs with respect to the Company’s payment of premiums.

     3.8. Vacation. The Executive shall be entitled to vacation of no less than 20
business days per year, to be credited in accordance with ordinary Company policies.

     3.9. Expenses-In General. The Company shall pay or reimburse the Executive for all
ordinary and reasonable out-of-pocket expenses actually incurred (and, in the case of
reimbursement, paid) by the Executive during the Term in the performance of the Executive’s
services under this Agreement, in accordance with the Company’s policies regarding such
reimbursements. The Company shall reimburse reasonable fees and expenses incurred by the Executive
for participation in professional and trade associations and reasonable expenses incurred in
connection with business development and client entertainment activities.

     3.10. Automobile. The Company shall provide the Executive with an automobile
allowance of $833.00 per month.

     4. Termination upon Death or Disability. If the Executive dies during the Term, the
Term shall terminate as of the date of death, and the obligations of the Company to or with respect
to the Executive shall terminate in their entirety upon such date except as otherwise provided
under this Section 4. If the Executive is unable to perform substantially and

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continuously the duties assigned to him due to a disability as defined for purposes of the
Company’s long-term disability plan then in effect, or, if no such plan is in effect, by virtue of
ill health or other disability for more than 180 consecutive or non-consecutive days out of any
consecutive 12-month period, the Company shall have the right, to the extent permitted by law, to
terminate the employment of the Executive upon notice in writing to the Executive. Upon
termination of employment due to death or disability, (i) the Executive (or the Executive’s estate
or beneficiaries in the case of the death of the Executive) shall be entitled to receive any Annual
Salary and other benefits actually earned and accrued under this Agreement prior to the date of
termination (and reimbursement under this Agreement for expenses incurred prior to the date of
termination); (ii) without duplication of any amounts due under clause (i), the Executive (or the
Executive’s estate or beneficiaries in the case of the death of the Executive) shall receive an
amount equal to the Annual Bonus that, in the absence of such termination, would have been payable
for the fiscal year in which termination occurs, payable at such time as would have applied in the
absence of such termination, with such amount to be multiplied by a fraction (x) the numerator of
which is the number of days in the fiscal year preceding the termination and (y) the denominator of
which is 365; (iii) all outstanding unvested equity-based awards (including, without limitation,
stock options and restricted stock) held by the Executive shall fully vest and become immediately
exercisable, as applicable, and subject to the terms of such awards; and (iv) the Executive (or the
Executive’s estate or beneficiaries in the case of the death of the Executive) shall have no
further rights to any other compensation or benefits hereunder, or any other rights hereunder (but,
for the avoidance of doubt, shall receive such disability and death benefits as may be provided
under the Company’s plans and arrangements in accordance with their terms). Upon any termination
for Disability under this Section 4, the Executive shall

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promptly resign from all positions he then holds with the Company and any of its subsidiaries,
including but not limited to any membership on the Board or on the board of directors of any
subsidiary of the Company.

     5. Certain Terminations of Employment; Certain Benefits.

     5.1. Termination by the Company for Cause; Termination by the Executive without Good
Reason.

          (a) For purposes of this Agreement, “Cause” shall mean the Executive’s:

	 	(i)	 	commission of, and indictment for or formal
admission to, a felony, a crime of moral turpitude, dishonesty, breach
of trust, fraud, misappropriation, embezzlement or unethical business
conduct, or any crime involving the Company;
	 
	 	(ii)	 	continued willful misconduct, willful or gross
neglect in the performance of his duties hereunder, and then only after
appropriate written notice of such misconduct and an appropriate
period, as determined by the Board, to remedy such misconduct or
neglect;
	 
	 	(iii)	 	continued failure to materially adhere to the
clear directions of the Board, to adhere to the Company’s policies and
practices or to devote substantially all of his business time and
efforts to the Company and its subsidiaries in accordance with and
subject to the provisions of Section 2 hereof and failure to cure such
failure within 30 days following written notice from the Company
specifying such failure;
	 
	 	(iv)	 	continued failure to substantially perform his
duties properly assigned to the Executive by the Board of Directors of
the Company in writing (other than any such failure resulting from his
Disability) and failure to cure such failure to perform within 30 days
following written notice from the Company specifying such failure;
	 
	 	(v)	 	material breach of any of the provisions of
Section 6 and failure to cure such breach within 15 days following
written notice from the Company specifying such breach; or
	 
	 	(vi)	 	material and willful breach of the terms and
provisions of this Agreement and failure to cure such breach within 15
days

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	 	 	 	following written notice from the Company specifying such breach;

provided that the Company shall not be permitted to terminate the Executive for Cause except on
written notice given to the Executive at any time not more than 30 days following the occurrence of
any of the events described in clause (ii) through (vi) above (or, if later, the Company’s
knowledge thereof). No termination for Cause under clause (i) through (vi) shall be effective
unless the Board makes a determination that Cause exists after notice to the Executive, and the
Executive has been provided with an opportunity (with counsel of his choice at his own expense) to
contest the determination at a meeting of the Board.

          (b) The Company may terminate this Agreement and the Executive’s employment hereunder for
Cause, and the Executive may terminate his employment on at least 30 days’ written notice given to
the Company. If the Company terminates the Executive for Cause, or the Executive terminates his
employment and the termination by the Executive is not for Good Reason in accordance with Section
5.2, (i) the Executive shall receive Annual Salary and other benefits (including any Annual Bonus
for a fiscal year completed before termination and awarded but not yet paid, or in the event of a
partial fiscal year, a pro rata portion of the Annual Bonus earned through the date of such
termination, which is to be calculated based on the Annual Bonus paid for the prior fiscal year
with such Annual Bonus amount to be multiplied by a fraction (x) the numerator of which is the
number of days in the fiscal year preceding the termination and (y) the denominator of which is
365) earned and accrued under this Agreement prior to the termination of employment (and
reimbursement under this Agreement for expenses incurred prior to the termination of employment);
and (ii) the Executive shall have no further rights to any other compensation or benefits under
this Agreement on or after the termination of employment. Upon any termination under this Section
5.1, the Executive shall promptly resign

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from all positions he then holds with the Company and any of its subsidiaries, including but
not limited to any membership on the Board or on the board of directors of any subsidiary of the
Company.

     5.2. Termination by the Company without Cause; Termination by the Executive for Good
Reason.

          (a) For purposes of this Agreement, “Good Reason” shall mean, unless otherwise consented to by
the Executive,

	 	(i)	 	the material reduction of the Executive’s
title, authority, duties and responsibilities or the assignment to the
Executive of duties materially inconsistent with the Executive’s
position or positions with the Company;
	 
	 	(ii)	 	a reduction in Annual Salary of the Executive;
	 
	 	(iii)	 	the relocation of the Executive’s office to
more than 50 miles from Bethesda, Maryland; or
	 
	 	(iv)	 	the Company’s breach of any material provision
of this Agreement.

Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist unless notice of
termination on account thereof (specifying a termination date no later than 30 days from the date
of such notice) is given no later than 30 days after the time at which the event or condition
purportedly giving rise to Good Reason first occurs or arises and (ii) if there exists (without
regard to this clause (ii)) an event or condition that constitutes Good Reason, the Company shall
have 15 days from the date notice of such a termination is given to cure such event or condition
and, if the Company does so, such event or condition shall not constitute Good Reason hereunder.
In the event of any notice of non-renewal of this Agreement by the Company, as described in Section
1, then (i) the Executive shall receive Annual Salary and other benefits (including any Annual
Bonus for a fiscal year completed before termination) earned and accrued

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under this Agreement prior to the non-renewal of this Agreement (and reimbursement under this
Agreement for expenses incurred prior to the termination of employment), (ii) the Executive shall
receive a single-sum cash payment equal to the sum of (x) the Executive’s Annual Salary as in
effect immediately before such non-renewal, and (y) the Executive’s maximum Annual Bonus payable in
accordance with Section 3.2 for the fiscal year in which such non-renewal occurs, payable upon the
expiration of the Term; provided, however, that if the Executive is a “specified employee” (as
defined in Section 409A of the Internal Revenue Code), such amount shall be payable upon the date
that is six months after the Executive’s termination of employment, and (iii) all outstanding
unvested equity-based awards (including without limitation stock options and restricted stock) held
by the Executive shall fully vest and shall become immediately exercisable, as applicable, and
subject to the terms of such awards.

          (b) The Company may terminate the Executive’s employment and the Executive may terminate the
Executive’s employment with the Company at any time for any reason or no reason. If the Company
terminates the Executive’s employment and the termination is not covered by Section 4 or 5.1, or
the Executive terminates his employment for Good Reason:

	 	(i)	 	the Executive shall receive Annual Salary and
other benefits (including any Annual Bonus for a fiscal year completed
before termination) earned and accrued under this Agreement prior to
the termination of employment (and reimbursement under this Agreement
for expenses incurred prior to the termination of employment);
	 
	 	(ii)	 	the Executive shall receive a single-sum cash
payment equal to 2.99 times the sum of (x) the Executive’s Annual
Salary as in effect immediately before such termination, and (y) the
average Annual Bonus paid to the Executive in accordance with Section
3.2 for the two fiscal years preceding termination; provided that, if
the Executive has been employed for less than two years, the Annual
Bonus amount for the purposes of this clause (y) will be the Annual
Bonus paid for the prior fiscal year and, if the Executive has been
employed less than one year, the Annual Bonus amount for purposes of
this clause (y) will be

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	 	 	 	100% of the Executive’s Annual Salary as then in effect, payable no
later than ten days after such termination or, if the Executive is
a “specified employee” (as defined in Section 409A of the Internal
Revenue Code), the date that is six months after such termination;
	 
	 	(iii)	 	for a period of one year after termination of
employment, such continuing coverage under the group health plans the
Executive would have received under this Agreement as would have
applied in the absence of such termination, provided that the Company
shall in no event be required to provide any benefits otherwise
required by this clause after such time as the Executive becomes
entitled to receive benefits of the same type from another employer or
recipient of the Executive’s services; and
	 
	 	(iv)	 	all outstanding unvested equity-based awards
(including without limitation stock options and restricted stock) held
by the Executive shall fully vest and shall become immediately
exercisable, as applicable, and subject to the terms of such awards.

          (c) Upon any termination under this Section 5.2, the Executive shall resign from all positions
he then holds with the Company and any of its subsidiaries, including but not limited to any
membership on the Board or on the board of directors of any subsidiary of the Company.

     5.3. Change of Control. Without duplication of the foregoing, upon a “Change of
Control” (as defined below) while the Executive is employed, all outstanding unvested equity-based
awards (including stock options and restricted stock) shall fully vest and shall become immediately
exercisable, as applicable, and subject to the terms of such awards. In addition, if, after a
Change of Control, the Executive terminates his employment with the Company within the six-month
anniversary of the Change of Control, such termination shall be deemed a termination by the
Executive for Good Reason covered by Section 5.2 (other than for purposes of Section 6.1(a)) and
further provided that the amount payable under Section 5.2(b)(ii) shall be payable no later than
ten days after such termination (rather than the date prescribed in

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Section 5.2(b)(ii)), if the “Change in Control” satisfies the requirements of a change in
control under Section 409A of the Code. For purposes of this Agreement, “Change in Control” shall
mean the happening of any of the following:

	 	(i)	 	any “person,” including a “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), but excluding the
Company, any entity controlling, controlled by or under common control
with the Company, any employee benefit plan of the Company or any such
entity, and Executive and any “group” (as such term is used in Section
13(d)(3) of the Exchange Act) of which the Executive is a member) is or
becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the
Exchange Act), directly or indirectly, of securities of the Company
representing 50% or more of either (A) the combined voting power of the
Company’s then outstanding securities or (B) the then outstanding
Common Stock of the Company (in either such case other than as a result
of an acquisition of securities directly from the Company); provided,
however, that, in no event shall a Change in Control be deemed to have
occurred upon an initial public offering or a subsequent public
offering of the Common Stock under the Securities Act of 1933, as
amended; or
	 
	 	(ii)	 	any consolidation or merger of the Company
where the stockholders of the Company, immediately prior to the
consolidation or merger, would not, immediately after the consolidation
or merger, beneficially own (as such term is defined in Rule 13d-3
under the Exchange Act), directly or indirectly, shares representing in
the aggregate 50% or more of the combined voting power of the
securities of the corporation issuing cash or securities in the
consolidation or merger (or of its ultimate parent corporation, if
any); or
	 
	 	(iii)	 	there shall occur (A) any sale, lease,
exchange or other transfer (in one transaction or a series of
transactions contemplated or arranged by any party as a single plan) of
all or substantially all of the assets of the Company, other than a
sale or disposition by the Company of all or substantially all of the
Company’s assets to an entity, at least 50% of the combined voting
power of the voting securities of which are owned by “persons” (as
defined above) in substantially the same proportion as their ownership
of the Company immediately prior to such sale or (B) the approval by
stockholders of the Company of any plan or proposal for the liquidation
or dissolution of the Company (or, if such approval is not required by
applicable law and is not solicited by the

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	 	 	 	Company, the commencement of actions constituting such a plan or
the closing of such an agreement); or
	 
	 	(iv)	 	the members of the Board at the beginning of
any consecutive 12-calendar-month period (the “Incumbent Directors”)
cease for any reason other than due to death to constitute at least a
majority of the members of the Board; provided that any director whose
election, or nomination for election by the Company’s stockholders, was
approved by a vote of at least a majority of the members of the Board
then still in office who were members of the Board at the beginning of
such 12-calendar-month period, shall be deemed to be an Incumbent
Director.

          (b) Upon any termination under this Section 5.3, the Executive shall resign from all positions
he then holds with the Company and any of its subsidiaries, including but not limited to any
membership on the Board or on the board of directors of any subsidiary of the Company.

     5.4. Parachutes. If any amount payable to or other benefit receivable by the
Executive pursuant to this Agreement is deemed to constitute a Parachute Payment (as defined
below), alone or when added to any other amount payable or paid to or other benefit receivable or
received by the Executive which is deemed to constitute a Parachute Payment (whether or not under
an existing plan, arrangement or other agreement), and would result in the imposition on the
Executive of an excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”), then, in addition to any other benefits to which the Executive is entitled under this
Agreement, the Executive shall be paid by the Company an amount in cash equal to the sum of the
excise taxes payable by the Executive by reason of receiving Parachute Payments plus the amount
necessary to put the Executive in the same after-tax position (taking into account any and all
applicable federal, state and local excise, income or other taxes at the highest applicable rates
on such Parachute Payments and on any payments under this Section 5.4 as if no excise taxes had
been imposed with respect to Parachute Payments). “Parachute Payment” shall

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mean a “parachute payment” as defined in Section 280G of the Code. The calculation under this
Section 5.4 shall be as determined by the Company’s accountants.

     6. Covenants of the Executive.

     6.1. Covenant Against Competition; Other Covenants. The Executive acknowledges that
(i) the principal business of the Company (which expressly includes for purposes of this Section 6
(and any related enforcement provisions hereof), its successors and assigns) is the ownership and
leasing of commercial office properties in the greater metropolitan Washington, D.C. marketplace
and its surrounding areas, ranging generally from Baltimore, Maryland through Richmond and Norfolk,
Virginia, as well as the origination of, acquisition of and investment in structured real estate
finance investments (such business, and such other principal businesses in which the Company may
engage during the employ of the Executive, in the locations described, and such other locations in
which the Company may conduct business during the employ of the Executive, as herein being referred
to as the “Business”; provided, however, that, for purposes of this Agreement, the definition of
“Business” shall not include the activities described on Exhibit A hereto); (ii) the
Executive’s work for the Company has given and will continue to give him access to the confidential
affairs and proprietary information of the Company; (iii) the covenants and agreements of the
Executive contained in this Section 6 are essential to the business and goodwill of the Company;
and (iv) the Company would not have entered into this Agreement but for the covenants and
agreements set forth in this Section 6. Accordingly, the Executive covenants and agrees that:

          (a) By and in consideration of the salary and benefits to be provided by the Company
hereunder, and subject to Executive receiving all monies due to him as set forth herein, and
further in consideration of the Executive’s exposure to the proprietary information of the

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Company, the Executive covenants and agrees that, during the period of the Executive’s
employment with the Company and, in the event of a termination of the Executive’s employment
hereunder by the Company for Cause or a termination of the Executive’s employment hereunder by the
Executive without Good Reason, for a period ending one year following the date upon which such
termination becomes effective, he shall not in the United States, directly or indirectly, except
with the prior approval of the Board, (i) engage in the Business (other than for the Company or its
affiliates), or (ii) render any services to any person, corporation, partnership or other entity
(other than the Company or its affiliates) whose principal business is to engage in the Business or
who has taken substantial measures, or made material investments, evidencing an intention to engage
in the Business other than incidentally as is necessary to engage in its principal business, or
(iii) become interested in any person, corporation, partnership or other entity (other than the
Company or its affiliates) principally engaged in the Business, as a partner, shareholder,
principal, agent, employee, consultant or in any other relationship or capacity; provided, however,
that, notwithstanding the foregoing, (1) the Executive may continue his investments in Bee Ridge
Plaza LLC, which owns the Bee Ridge Plaza shopping center located in Sarasota, Florida, Timber
Valley Preservation LLC, Landover Metro LLC, MGP Cap One LLC, Core Communications Inc., Sign
Concepts Inc., Main Street Bank, and Hispanic Landscapers Fund and (2) the Executive may invest in
up to 5% of the securities of any entity, solely for investment purposes and without participating
in the business thereof, if (A) such securities are traded on any national securities exchange or
the National Association of Securities Dealers, Inc. Automated Quotation System, and (B) the
Executive is not a controlling person of, or a member of a group which controls, such entity.
Notwithstanding the foregoing, the restrictions in this Section 6(a) shall not apply upon and after
a termination covered by

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Section 5.2. In addition, the restrictions of this Section 6(a) shall not apply to (i) his
investments in Bee Ridge Plaza LLC, which owns the Bee Ridge Plaza shopping center located in
Sarasota, Florida, Timber Valley Preservation LLC, Landover Metro LLC, MGP Cap One LLC, Core
Communications Inc., Sign Concepts Inc., Main Street Bank, and Hispanic Landscapers Fund and (ii)
any other existing investments or other activities of the Executive which, if applicable, are set
forth on Exhibit A hereto.

          (b) During and after the period of the Executive’s employment with the Company and its
affiliates, the Executive shall keep secret and retain in strictest confidence, except in
connection with the business and affairs of the Company and its affiliates, all confidential
matters relating to the Company’s Business and the business of any of its affiliates and to the
Company and any of its affiliates, learned by the Executive heretofore or hereafter directly or
indirectly from the Company or any of its affiliates (the “Confidential Company Information”); and
shall not disclose such Confidential Company Information to anyone outside of the Company except
with the Company’s express written consent and except for Confidential Company Information which is
at the time of receipt or thereafter becomes publicly known through no wrongful act of the
Executive or is received from a third party not under an obligation to keep such information
confidential and without breach of this Agreement.

          (c) During the period commencing on the date hereof and ending one year following the date
upon which the Executive shall cease to be an employee of the Company and its affiliates, (i) the
Executive shall not, without the Company’s prior written consent, directly or indirectly, knowingly
(A) solicit or encourage to leave the employment or other service of the Company, or any of its
affiliates, any employee or independent contractor thereof or (B) hire (on behalf of the Executive
or any other person or entity) any employee who has left the employment

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of the Company or any of its affiliates within the one-year period which follows the
termination of such employee’s employment with the Company and its affiliates, and (ii) the
Executive will not, whether for his own account or for the account of any other person, firm,
corporation or other business organization, intentionally interfere with the Company’s or any of
its affiliates’ relationship with, or endeavor to entice away from the Company or any of its
affiliates, any person who during the Term is or was a customer or client of the Company or any of
its affiliates.

     6.2. Rights and Remedies upon Breach. The Executive acknowledges and agrees that any
breach by him of any of the provisions of Section 6.1 (the “Restrictive Covenants”) would result in
irreparable injury and damage for which money damages would not provide an adequate remedy.
Therefore, if the Executive breaches, or threatens to commit a breach of, any of the provisions of
Section 6.1, the Company and its affiliates, in addition to, and not in lieu of, any other rights
and remedies available to the Company and its affiliates under law or in equity (including, without
limitation, the recovery of damages), shall have the right and remedy to have the Restrictive
Covenants specifically enforced by any court having equity jurisdiction, including, without
limitation, the right to an entry against the Executive of restraining orders and injunctions
(preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and
whether or not then continuing, of such covenants.

     7. Other Provisions.

     7.1. Severability. The Executive acknowledges and agrees that (i) he has had an
opportunity to seek advice of counsel in connection with this Agreement and (ii) the Restrictive
Covenants are reasonable in geographical and temporal scope and in all other respects. If it is
determined that any of the provisions of this Agreement, including, without limitation, any of the

17

 

Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the
provisions of this Agreement shall not thereby be affected and shall be given full effect, without
regard to the invalid portions.

     7.2. Duration and Scope of Covenants. If any court or other decision-maker of
competent jurisdiction determines that any of the Executive’s covenants contained in this
Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, is
unenforceable because of the duration or geographical scope of such provision, then, after such
determination has become final and unappealable, the duration or scope of such provision, as the
case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form,
such provision shall then be enforceable and shall be enforced.

     7.3. Enforceability; Jurisdiction; Arbitration. Any controversy or claim arising out
of or relating to this Agreement or the breach of this Agreement (other than a controversy or claim
arising under Section 6, to the extent necessary for the Company (or its affiliates, where
applicable) to avail itself of the rights and remedies referred to in Section 6.2) that is not
resolved by the Executive and the Company (or its affiliates, where applicable) shall be submitted
to arbitration in the greater Washington, D.C. metropolitan area in accordance with Maryland law
and the procedures of the American Arbitration Association. The determination of the arbitrator(s)
shall be conclusive and binding on the Company (or its affiliates, where applicable) and the
Executive and judgment may be entered on the arbitrator(s)’ award in any court having jurisdiction.

     7.4. Legal Fees. The Company shall pay directly or reimburse the Executive for all
reasonable legal fees and expenses incurred by the Executive in connection with the review,
negotiation and execution of this Agreement.

18

 

     7.5. Notices. Any notice or other communication required or permitted hereunder shall
be in writing and shall be delivered personally, telegraphed, telexed, sent by facsimile
transmission or sent by certified, registered or express mail, postage prepaid. Any such notice
shall be deemed given when so delivered personally, telegraphed, telexed or sent by facsimile
transmission or, if mailed, five days after the date of deposit in the United States mails as
follows:

	 	 	 	 	 	 	 
	 	 	(i)	 	If to the Company, to:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	4733 Bethesda Avenue
	 

	 	 	 	 	 	Suite 800
	 

	 	 	 	 	 	Bethesda, MD 20814
	 

	 	 	 	 	 	Attention: Clay E. Carney
	 
	 	 	 	 	 	 
	 	 	 	 	with a copy to:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Hunton & Williams LLP
	 

	 	 	 	 	 	Riverfront Plaza, East Tower
	 

	 	 	 	 	 	951 East Byrd Street
	 

	 	 	 	 	 	Richmond, VA 23219
	 

	 	 	 	 	 	Attention: Daniel M. LeBey
	 
	 	 	 	 	 	 
	 	 	(ii)	 	If to the Executive, to the address set forth
on the signature page hereof.

Any such person may by notice given in accordance with this Section 7.5 to the other parties hereto
designate another address or person for receipt by such person of notices hereunder.

     7.6. Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior agreements, written or
oral, with respect thereto.

     7.7. Waivers and Amendments. This Agreement may be amended, superseded, canceled,
renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any
party in exercising any right, power or privilege hereunder shall operate

19

 

as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or
privilege nor any single or partial exercise of any such right, power or privilege, preclude any
other or further exercise thereof or the exercise of any other such right, power or privilege.

     7.8. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF MARYLAND WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW WHICH
COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF MARYLAND.

     7.9. Assignment. This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors, heirs (in the case of the Executive) and assigns. No
rights or obligations of the Company under this Agreement may be assigned or transferred by the
Company except that such rights or obligations may be assigned or transferred, subject to Section
5.3, pursuant to a merger or consolidation in which the Company is not the continuing entity, or
the sale or liquidation of all or substantially all of the assets of the Company; provided,
however, that the assignee or transferee is the successor to all or substantially all of the assets
of the Company and such assignee or transferee assumes the liabilities, obligations and duties of
the Company, as contained in this Agreement, either contractually or as a matter of law.

     7.10. Withholding. The Company shall be entitled to withhold from any payments or
deemed payments any amount of tax withholding it determines to be required by law.

     7.11. Binding Effect. This Agreement shall be binding upon and inure to the benefit
of the parties and their respective successors, permitted assigns, heirs, executors and legal
representatives.

20

 

     7.12. Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original but all such
counterparts together shall constitute one and the same instrument. Each counterpart may consist
of two copies hereof each signed by one of the parties hereto.

     7.13. Survival. Anything contained in this Agreement to the contrary notwithstanding,
the provisions of Sections 5 and 6 and any other provisions of this Agreement expressly imposing
obligations that survive termination of Executive’s employment hereunder, and the other provisions
of this Section 7 to the extent necessary to effectuate the survival of such provisions, shall
survive termination of this Agreement and any termination of the Executive’s employment hereunder.

     7.14. Existing Agreements. The Executive represents to the Company that he is not
subject or a party to any employment or consulting agreement, non-competition covenant or other
agreement, covenant or understanding which might prohibit him from executing this Agreement or
limit his ability to fulfill his responsibilities hereunder.

     7.15. Headings. The headings in this Agreement are for reference only and shall not
affect the interpretation of this Agreement.

21

 

          IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	ASSET CAPITAL CORPORATION, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Peter C. Minshall
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Peter C. Minshall
	 

	 	 	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	 	 	/s/ Blair D. Fernau
	 	 	 
	 	 	 	 	Blair D. Fernau
	 	 	 	 	4733 Bethesda Avenue
	 	 	 	 	Suite 800
	 	 	 	 	Bethesda, MD 20814

22

 

EXHIBIT A

List of Excluded Investments

Investments or activities involved with the following:

	 	1)	 	Bee Ridge Plaza LLC, which owns the Bee Ridge Plaza shopping
center located in Sarasota, Florida;
	 
	 	2)	 	Timber Valley Preservation LLC;
	 
	 	3)	 	Landover Metro LLC;
	 
	 	4)	 	MGP Cap One LLC;
	 
	 	5)	 	Core Communications Inc.;
	 
	 	6)	 	Sign Concepts Inc.;
	 
	 	7)	 	Main Street Bank; and
	 
	 	8)	 	Hispanic Landscapers Fund.

Future investments or activities sponsored by:

	 	1)	 	The Zitelman Group or its affiliates; and
	 
	 	2)	 	The Patriot Group.

23exv10w5

 

Exhibit 10.5

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of May 23, 2006, is hereby
entered into by and between Asset Capital Corporation, Inc., a Maryland corporation with its
principal place of business at 7315 Wisconsin Avenue, Suite 205 East, Bethesda, Maryland 20814 (the
“Company”) and William B. LeBlanc III, residing at the address set forth on the signature page
hereof (the “Executive”).

     WHEREAS, the Company and the Executive entered into an employment agreement dated as of June
30, 2005; and

     WHEREAS, the Company and the Executive wish to continue such employment relationship and to
amend and restate such employment agreement on the terms set forth below:

     Accordingly, the parties hereto agree as follows:

     1. Term. The Company hereby employs the Executive, and the Executive hereby accepts
such employment, for an initial term commencing as of the date hereof and continuing for a
three-year period following such date, unless sooner terminated in accordance with the provisions
of Section 4 or Section 5; with such term to renew automatically for successive one-year periods
following the initial term in accordance with the terms of this Agreement (subject to termination
as aforesaid) unless either party notifies the other party of non-renewal in writing prior to three
months before the expiration of the initial term and each successive annual renewal term, as
applicable (the period during which the Executive is employed hereunder being hereinafter referred
to as the “Term”).

     2. Duties. During the Term, the Executive shall be employed by the Company as
President and Chief Operating Officer of the Company, and, as such, the Executive shall

 

 

faithfully perform for the Company the duties of said offices and shall perform such other
duties of an executive, managerial or administrative nature as shall be specified and designated
from time to time by the Chief Executive Officer of the Company (the “Chief Executive Officer”).
The Executive shall devote substantially all of his business time and effort during regular
business hours (excluding Saturdays, Sundays and major holidays) to the performance of his duties
hereunder. Subject to the foregoing, the Company hereby acknowledges that the Executive may engage
in the activities described on Exhibit A hereto.

     3. Compensation.

     3.1. Salary. The Company shall pay the Executive during the Term a salary at a
minimum rate of $325,000 per annum (the “Annual Salary”), in accordance with the customary payroll
practices of the Company applicable to senior executives. The Board periodically shall review the
Executive’s Annual Salary and, after discussion with the Chief Executive Officer, may provide for
such increases therein as it may in its discretion deem appropriate. Any such increased salary
shall constitute the “Annual Salary” as of the time of the increase.

     3.2. Bonus. During the Term, in addition to the Annual Salary, for each fiscal year
of the Company ending during the Term, the Executive shall have the opportunity to receive an
annual bonus (the “Annual Bonus”) in an amount up to 100% of the Annual Salary, with the actual
amount and terms of such Annual Bonus to be determined by the Compensation Committee of the Board.
The Annual Bonus payable with respect to a fiscal year of the Company shall be paid no later than
the fifteenth day of the third month after the end of the fiscal year. Any Annual Bonus payable
for a partial fiscal year (whether because the commencement date of the Term was on a date other
than January 1 or the Date of Termination is on a date other than December 31) shall be pro rated
by multiplying the Annual Bonus amount by a fraction the

2

 

numerator of which is the number of days during the partial fiscal year that the Executive is
or was employed by the Company under this Agreement and the denominator of which is 365. The
forgoing shall not limit the Executive’s eligibility to receive any other bonus under any other
bonus plan, stock option or equity–based plan, or other policy or program that is adopted by the
Compensation Committee of the Board or by the Board itself.

     3.3. Equity Based Awards.

          (a) Equity Incentive Plan. The Company has established the 2005 Equity Incentive Plan
(“Equity Incentive Plan”). Subject to the terms and conditions of the Equity Incentive Plan, the
Executive shall be eligible to participate in the Equity Incentive Plan, and shall be eligible to
receive annual stock option and/or restricted stock awards under the Equity Incentive Plan. The
Compensation Committee shall approve any such awards made to the Executive pursuant to the Equity
Incentive Plan.

          (b) Founders Shares. Upon formation of the Company, the Executive purchased 86,667
shares of the Company’s common stock (the “Founders Shares”) for a purchase price of $0.001 per
share. The Founders Shares shall be subject to forfeiture restrictions that will terminate with
respect to 8.33% of the awarded shares at the end of each quarterly period commencing with the
first full fiscal quarter after the date of grant; provided, however, that all forfeiture
restrictions on outstanding Founders Shares will lapse automatically upon (i) a Change in Control
(as defined herein), (ii) a termination by the Company without Cause (as defined herein), (iii) a
termination by the Executive for Good Reason (as defined herein), (iv) the Executive’s death, (v)
the Disability (as defined below) of the Executive, or (vi) the Company’s failure to renew this
Agreement, and that the Executive will forfeit all Founders Shares with respect to which the
forfeiture restrictions have not terminated if he is

3

 

terminated for Cause or he terminates for other than Good Reason. The Founders Shares will
have voting and dividend rights. Notwithstanding anything to the contrary contained herein, the
Executive agrees that the Company shall redeem 31,912 of the Executive’s Founders Shares (the
“Redemption Shares”) at a redemption price of $0.001 per share within 40 days after the date of
this Agreement; provided, however, that the number of Redemption Shares actually redeemed by the
Company shall be reduced by a number equal to 1% of the number of shares of common stock issued by
the Company pursuant to any exercise by Friedman, Billings, Ramsey & Co., Inc. (“FBR”) of its
additional allotment option under that certain Purchase/Placement Agreement dated June 23, 2005,
among the Company, Asset Capital Partners, L.P. and FBR.

     3.4. Benefits-In General. The Executive shall be permitted during the Term to
participate in any group life, hospitalization or disability insurance plans, health programs,
retirement plans, fringe benefit programs and other benefits that may be available to other senior
executives of the Company generally, in each case to the extent that the Executive is eligible
under the terms of such plans or programs.

     3.5. Disability Insurance. The Company will maintain, at its cost, a renewable
long-term Disability plan that, subject to the terms of such plan and any applicable plans,
policies or programs, provides for the annual payment of not less than 60% of the Executive’s
Annual Salary for so long as any long-term Disability of the Executive continues. In addition, the
Company shall reimburse the Executive the amount of the premiums payable by the Executive with
respect to a personal supplemental long-term disability insurance policy providing for benefits
equal to at least 40% of the Executive’s Annual Salary for so long as any long-term Disability of
the Executive continues.

4

 

     3.6. Directors and Officers Insurance. During the Term and for a period of 24 months
thereafter, the Executive shall be entitled to director and officer insurance coverage for his acts
and omissions while an officer and director of the Company on a basis no less favorable to him than
the coverage provided to current officers and directors.

     3.7. Life Insurance. The Company will purchase a term life insurance policy for the
benefit of the Executive or the Executive’s designated beneficiaries with a death benefit of $3.0
million. The Executive shall be entitled to reimbursement of any income tax that the Executive
incurs with respect to the Company’s payment of premiums.

     3.8. Vacation. The Executive shall be entitled to vacation of no less than 20
business days per year, to be credited in accordance with ordinary Company policies.

     3.9. Expenses-In General. The Company shall pay or reimburse the Executive for all
ordinary and reasonable out-of-pocket expenses actually incurred (and, in the case of
reimbursement, paid) by the Executive during the Term in the performance of the Executive’s
services under this Agreement, in accordance with the Company’s policies regarding such
reimbursements. The Company shall reimburse reasonable fees and expenses incurred by the Executive
for participation in professional and trade associations and reasonable expenses incurred in
connection with business development and client entertainment activities.

     3.10. Automobile. The Company shall provide the Executive with an automobile
allowance of $833.00 per month.

     4. Termination upon Death or Disability. If the Executive dies during the Term, the
Term shall terminate as of the date of death, and the obligations of the Company to or with respect
to the Executive shall terminate in their entirety upon such date except as otherwise provided
under this Section 4. If the Executive is unable to perform substantially and

5

 

continuously the duties assigned to him due to a disability as defined for purposes of the
Company’s long-term disability plan then in effect, or, if no such plan is in effect, by virtue of
ill health or other disability for more than 180 consecutive or non-consecutive days out of any
consecutive 12-month period, the Company shall have the right, to the extent permitted by law, to
terminate the employment of the Executive upon notice in writing to the Executive. Upon
termination of employment due to death or disability, (i) the Executive (or the Executive’s estate
or beneficiaries in the case of the death of the Executive) shall be entitled to receive any Annual
Salary and other benefits actually earned and accrued under this Agreement prior to the date of
termination (and reimbursement under this Agreement for expenses incurred prior to the date of
termination); (ii) without duplication of any amounts due under clause (i), the Executive (or the
Executive’s estate or beneficiaries in the case of the death of the Executive) shall receive an
amount equal to the Annual Bonus that, in the absence of such termination, would have been payable
for the fiscal year in which termination occurs, payable at such time as would have applied in the
absence of such termination, with such amount to be multiplied by a fraction (x) the numerator of
which is the number of days in the fiscal year preceding the termination and (y) the denominator of
which is 365; (iii) all outstanding unvested equity-based awards (including, without limitation,
stock options and restricted stock) held by the Executive shall fully vest and become immediately
exercisable, as applicable, and subject to the terms of such awards; and (iv) the Executive (or the
Executive’s estate or beneficiaries in the case of the death of the Executive) shall have no
further rights to any other compensation or benefits hereunder, or any other rights hereunder (but,
for the avoidance of doubt, shall receive such disability and death benefits as may be provided
under the Company’s plans and arrangements in accordance with their terms). Upon any termination
for Disability under this Section 4, the Executive shall

6

 

promptly resign from all positions he then holds with the Company and any of its subsidiaries,
including but not limited to any membership on the Board or on the board of directors of any
subsidiary of the Company.

     5. Certain Terminations of Employment; Certain Benefits.

     5.1. Termination by the Company for Cause; Termination by the Executive Without Good
Reason.

          (a) For purposes of this Agreement, “Cause” shall mean the Executive’s:

	 	(i)	 	commission of, and indictment for or formal
admission to, a felony, a crime of moral turpitude, dishonesty, breach
of trust, fraud, misappropriation, embezzlement or unethical business
conduct, or any crime involving the Company;
	 
	 	(ii)	 	continued willful misconduct, willful or gross
neglect in the performance of his duties hereunder, and then only after
appropriate written notice of such misconduct and an appropriate
period, as determined by the Board, to remedy such misconduct or
neglect;
	 
	 	(iii)	 	continued failure to materially adhere to the
clear directions of the Board, to adhere to the Company’s policies and
practices or to devote substantially all of his business time and
efforts to the Company and its subsidiaries in accordance with and
subject to the provisions of Section 2 hereof and failure to cure such
failure within 30 days following written notice from the Company
specifying such failure;
	 
	 	(iv)	 	continued failure to substantially perform his
duties properly assigned to the Executive by the Board of Directors of
the Company in writing (other than any such failure resulting from his
Disability) and failure to cure such failure to perform within 30 days
following written notice from the Company specifying such failure;
	 
	 	(v)	 	material breach of any of the provisions of
Section 6 and failure to cure such breach within 15 days following
written notice from the Company specifying such breach; or
	 
	 	(vi)	 	material and willful breach of the terms and
provisions of this Agreement and failure to cure such breach within 15
days

7

 

	 	 	 	following written notice from the Company specifying such breach;

provided that the Company shall not be permitted to terminate the Executive for Cause except on
written notice given to the Executive at any time not more than 30 days following the occurrence of
any of the events described in clause (ii) through (vi) above (or, if later, the Company’s
knowledge thereof). No termination for Cause under clause (i) through (vi) shall be effective
unless the Board makes a determination that Cause exists after notice to the Executive, and the
Executive has been provided with an opportunity (with counsel of his choice at his own expense) to
contest the determination at a meeting of the Board.

          (b) The Company may terminate this Agreement and the Executive’s employment hereunder for
Cause, and the Executive may terminate his employment on at least 30 days’ written notice given to
the Company. If the Company terminates the Executive for Cause, or the Executive terminates his
employment and the termination by the Executive is not for Good Reason in accordance with Section
5.2, (i) the Executive shall receive Annual Salary and other benefits (including any Annual Bonus
for a fiscal year completed before termination and awarded but not yet paid, or in the event of a
partial fiscal year, a pro rata portion of the Annual Bonus earned through the date of such
termination, which is to be calculated based on the Annual Bonus paid for in the prior fiscal year
with such Annual Bonus amount to be multiplied by a fraction (x) the numerator of which is the
number of days in the fiscal year preceding the termination and (y) the denominator of which is
365) earned and accrued under this Agreement prior to the termination of employment (and
reimbursement under this Agreement for expenses incurred prior to the termination of employment);
and (ii) the Executive shall have no further rights to any other compensation or benefits under
this Agreement on or after the termination of employment. Upon any termination under this Section
5.1, the Executive

8

 

shall promptly resign from all positions he then holds with the Company and any of its
subsidiaries, including but not limited to any membership on the Board or on the board of directors
of any subsidiary of the Company.

     5.2. Termination by the Company without Cause; Termination by the Executive for Good
Reason.

          (a) For purposes of this Agreement, “Good Reason” shall mean, unless otherwise consented to by
the Executive,

	 	(i)	 	the material reduction of the Executive’s
title, authority, duties and responsibilities or the assignment to the
Executive of duties materially inconsistent with the Executive’s
position or positions with the Company;
	 
	 	(ii)	 	a reduction in Annual Salary of the Executive;
	 
	 	(iii)	 	the relocation of the Executive’s office to
more than 50 miles from Bethesda, Maryland; or
	 
	 	(iv)	 	the Company’s breach of any material provision
of this Agreement.

Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist unless notice of
termination on account thereof (specifying a termination date no later than 30 days from the date
of such notice) is given no later than 30 days after the time at which the event or condition
purportedly giving rise to Good Reason first occurs or arises and (ii) if there exists (without
regard to this clause (ii)) an event or condition that constitutes Good Reason, the Company shall
have 15 days from the date notice of such a termination is given to cure such event or condition
and, if the Company does so, such event or condition shall not constitute Good Reason hereunder.
In the event of any notice of non-renewal of this Agreement by the Company, as described in Section
1, then (i) the Executive shall receive Annual Salary and other benefits (including any Annual
Bonus for a fiscal year completed before termination) earned and accrued

9

 

under this Agreement prior to the non-renewal of this Agreement (and reimbursement under this
Agreement for expenses incurred prior to the termination of employment), (ii) the Executive shall
receive a single-sum cash payment equal to the sum of (x) the Executive’s Annual Salary as in
effect immediately before such non-renewal, and (y) the Executive’s maximum Annual Bonus payable in
accordance with Section 3.2 for the fiscal year in which such non-renewal occurs, payable upon the
expiration of the Term; provided, however, that if the Executive is a “specified employee” (as
defined in Section 409A of the Internal Revenue Code), such amount shall be payable upon the date
that is six months after the Executive’s termination of employment, and (iii) all outstanding
unvested equity-based awards (including without limitation stock options and restricted stock) held
by the Executive shall fully vest and shall become immediately exercisable, as applicable, and
subject to the terms of such awards.

          (b) The Company may terminate the Executive’s employment and the Executive may terminate the
Executive’s employment with the Company at any time for any reason or no reason. If the Company
terminates the Executive’s employment and the termination is not covered by Section 4 or 5.1, or
the Executive terminates his employment for Good Reason:

	 	(i)	 	the Executive shall receive Annual Salary and
other benefits (including any Annual Bonus for a fiscal year completed
before termination) earned and accrued under this Agreement prior to
the termination of employment (and reimbursement under this Agreement
for expenses incurred prior to the termination of employment);
	 
	 	(ii)	 	the Executive shall receive a single-sum cash
payment equal to 2.99 times the sum of (x) the Executive’s Annual
Salary as in effect immediately before such termination, and (y) the
average Annual Bonus paid to the Executive in accordance with Section
3.2 for the two fiscal years preceding termination; provided that, if
the Executive has been employed for less than two years, the Annual
Bonus amount for the purposes of this clause (y) will be the Annual
Bonus paid for the prior fiscal year and, if the Executive has been
employed less than one year, the Annual Bonus amount for purposes of
this clause (y) will be

10

 

	 	 	 	100% of the Executive’s Annual Salary as then in effect, payable no
later than ten days after such termination or, if the Executive is
a “specified employee” (as defined in Section 409A of the Internal
Revenue Code), the date that is six months after such termination;
	 
	 	(iii)	 	for a period of one year after termination of
employment, such continuing coverage under the group health plans the
Executive would have received under this Agreement as would have
applied in the absence of such termination, provided that the Company
shall in no event be required to provide any benefits otherwise
required by this clause after such time as the Executive becomes
entitled to receive benefits of the same type from another employer or
recipient of the Executive’s services; and
	 
	 	(iv)	 	all outstanding unvested equity-based awards
(including without limitation stock options and restricted stock) held
by the Executive shall fully vest and shall become immediately
exercisable, as applicable, and subject to the terms of such awards.

          (c) Upon any termination under this Section 5.2, the Executive shall resign from all positions
he then holds with the Company and any of its subsidiaries, including but not limited to any
membership on the Board or on the board of directors of any subsidiary of the Company.

     5.3. Change of Control. Without duplication of the foregoing, upon a “Change of
Control” (as defined below) while the Executive is employed, all outstanding unvested equity-based
awards (including stock options and restricted stock) shall fully vest and shall become immediately
exercisable, as applicable, and subject to the terms of such awards. In addition, if, after a
Change of Control, the Executive terminates his employment with the Company within the six-month
anniversary of the Change of Control, such termination shall be deemed a termination by the
Executive for Good Reason covered by Section 5.2 (other than for purposes of Section 6.1(a)) and
further provided that the amount payable under Section 5.2(b)(ii) shall be payable no later than
ten days after such termination (rather than the date prescribed in

11

 

Section 5.2(b)(ii)), if the “Change in Control” satisfies the requirements of a change in
control under Section 409A of the Code. For purposes of this Agreement, “Change in Control” shall
mean the happening of any of the following:

	 	(i)	 	any “person,” including a “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), but excluding the
Company, any entity controlling, controlled by or under common control
with the Company, any employee benefit plan of the Company or any such
entity, and Executive and any “group” (as such term is used in Section
13(d)(3) of the Exchange Act) of which the Executive is a member) is or
becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the
Exchange Act), directly or indirectly, of securities of the Company
representing 50% or more of either (A) the combined voting power of the
Company’s then outstanding securities or (B) the then outstanding
Common Stock of the Company (in either such case other than as a result
of an acquisition of securities directly from the Company); provided,
however, that, in no event shall a Change in Control be deemed to have
occurred upon an initial public offering or a subsequent public
offering of the Common Stock under the Securities Act of 1933, as
amended; or
	 
	 	(ii)	 	any consolidation or merger of the Company
where the stockholders of the Company, immediately prior to the
consolidation or merger, would not, immediately after the consolidation
or merger, beneficially own (as such term is defined in Rule 13d-3
under the Exchange Act), directly or indirectly, shares representing in
the aggregate 50% or more of the combined voting power of the
securities of the corporation issuing cash or securities in the
consolidation or merger (or of its ultimate parent corporation, if
any); or
	 
	 	(iii)	 	there shall occur (A) any sale, lease,
exchange or other transfer (in one transaction or a series of
transactions contemplated or arranged by any party as a single plan) of
all or substantially all of the assets of the Company, other than a
sale or disposition by the Company of all or substantially all of the
Company’s assets to an entity, at least 50% of the combined voting
power of the voting securities of which are owned by “persons” (as
defined above) in substantially the same proportion as their ownership
of the Company immediately prior to such sale or (B) the approval by
stockholders of the Company of any plan or proposal for the liquidation
or dissolution of the Company (or, if such approval is not required by
applicable law and is not solicited by the

12

 

	 	 	 	Company, the commencement of actions constituting such a plan or
the closing of such an agreement); or
	 
	 	(iv)	 	the members of the Board at the beginning of
any consecutive 12-calendar-month period (the “Incumbent Directors”)
cease for any reason other than due to death to constitute at least a
majority of the members of the Board; provided that any director whose
election, or nomination for election by the Company’s stockholders, was
approved by a vote of at least a majority of the members of the Board
then still in office who were members of the Board at the beginning of
such 12-calendar-month period, shall be deemed to be an Incumbent
Director.

          (b) Upon any termination under this Section 5.3, the Executive shall resign from all positions
he then holds with the Company and any of its subsidiaries, including but not limited to any
membership on the Board or on the board of directors of any subsidiary of the Company.

     5.4. Parachutes. If any amount payable to or other benefit receivable by the
Executive pursuant to this Agreement is deemed to constitute a Parachute Payment (as defined
below), alone or when added to any other amount payable or paid to or other benefit receivable or
received by the Executive which is deemed to constitute a Parachute Payment (whether or not under
an existing plan, arrangement or other agreement), and would result in the imposition on the
Executive of an excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”), then, in addition to any other benefits to which the Executive is entitled under this
Agreement, the Executive shall be paid by the Company an amount in cash equal to the sum of the
excise taxes payable by the Executive by reason of receiving Parachute Payments plus the amount
necessary to put the Executive in the same after-tax position (taking into account any and all
applicable federal, state and local excise, income or other taxes at the highest applicable rates
on such Parachute Payments and on any payments under this Section 5.4 as if no excise taxes had
been imposed with respect to Parachute Payments). “Parachute Payment” shall

13

 

mean a “parachute payment” as defined in Section 280G of the Code. The calculation under this
Section 5.4 shall be as determined by the Company’s accountants.

     6. Covenants of the Executive.

     6.1. Covenant Against Competition; Other Covenants. The Executive acknowledges that
(i) the principal business of the Company (which expressly includes for purposes of this Section 6
(and any related enforcement provisions hereof), its successors and assigns) is the ownership and
leasing of commercial office properties in the greater metropolitan Washington, D.C. marketplace
and its surrounding areas, ranging generally from Baltimore, Maryland through Richmond and Norfolk,
Virginia, as well as the origination of, acquisition of and investment in structured real estate
finance investments (such business, and such other principal businesses in which the Company may
engage during the employ of the Executive, in the locations described, and such other locations in
which the Company may conduct business during the employ of the Executive, as herein being referred
to as the “Business”; provided, however, that, for purposes of this Agreement, the definition of
“Business” shall not include the activities described on Exhibit A hereto); (ii) the
Executive’s work for the Company has given and will continue to give him access to the confidential
affairs and proprietary information of the Company; (iii) the covenants and agreements of the
Executive contained in this Section 6 are essential to the business and goodwill of the Company;
and (iv) the Company would not have entered into this Agreement but for the covenants and
agreements set forth in this Section 6. Accordingly, the Executive covenants and agrees that:

          (a) By and in consideration of the salary and benefits to be provided by the Company
hereunder, and subject to Executive receiving all monies due to him as set forth herein, and
further in consideration of the Executive’s exposure to the proprietary information of the

14

 

Company, the Executive covenants and agrees that, during the period of the Executive’s
employment with the Company and, in the event of a termination of the Executive’s employment
hereunder by the Company for Cause or a termination of the Executive’s employment hereunder by the
Executive without Good Reason, for a period ending one year following the date upon which such
termination becomes effective, he shall not in the United States, directly or indirectly, except
with the prior approval of the Board, (i) engage in the Business (other than for the Company or its
affiliates), or (ii) render any services to any person, corporation, partnership or other entity
(other than the Company or its affiliates) whose principal business is to engage in the Business or
who has taken substantial measures, or made material investments, evidencing an intention to engage
in the Business other than incidentally as is necessary to engage in its principal business, or
(iii) become interested in any person, corporation, partnership or other entity (other than the
Company or its affiliates) principally engaged in the Business, as a partner, shareholder,
principal, agent, employee, consultant or in any other relationship or capacity; provided, however,
that, notwithstanding the foregoing, (1) the Executive may continue his investments in an ownership
interest in Bee Ridge Plaza LLC, which owns the Bee Ridge Plaza shopping center located in
Sarasota, Florida, and an ownership interest in an apartment complex located in Prince Georges
County, Maryland and (2) the Executive may invest in up to 5% of the securities of any entity,
solely for investment purposes and without participating in the business thereof, if (A) such
securities are traded on any national securities exchange or the National Association of Securities
Dealers, Inc. Automated Quotation System, and (B) the Executive is not a controlling person of, or
a member of a group which controls, such entity. Notwithstanding the foregoing, the restrictions
in this Section 6(a) shall not apply upon and after a termination covered by Section 5.2. In
addition, the restrictions of this Section 6(a) shall not

15

 

apply to (i) his investments in an ownership interest in Bee Ridge Plaza LLC, which owns the
Bee Ridge Plaza shopping center located in Sarasota, Florida, and an ownership interest in an
apartment complex located in Prince Georges County, Maryland and (ii) any other existing
investments or other activities of the Executive which, if applicable, are set forth on Exhibit A
hereto.

          (b) During and after the period of the Executive’s employment with the Company and its
affiliates, the Executive shall keep secret and retain in strictest confidence, except in
connection with the business and affairs of the Company and its affiliates, all confidential
matters relating to the Company’s Business and the business of any of its affiliates and to the
Company and any of its affiliates, learned by the Executive heretofore or hereafter directly or
indirectly from the Company or any of its affiliates (the “Confidential Company Information”); and
shall not disclose such Confidential Company Information to anyone outside of the Company except
with the Company’s express written consent and except for Confidential Company Information which is
at the time of receipt or thereafter becomes publicly known through no wrongful act of the
Executive or is received from a third party not under an obligation to keep such information
confidential and without breach of this Agreement.

          (c) During the period commencing on the date hereof and ending one year following the date
upon which the Executive shall cease to be an employee of the Company and its affiliates, (i) the
Executive shall not, without the Company’s prior written consent, directly or indirectly, knowingly
(A) solicit or encourage to leave the employment or other service of the Company, or any of its
affiliates, any employee or independent contractor thereof or (B) hire (on behalf of the Executive
or any other person or entity) any employee who has left the employment of the Company or any of
its affiliates within the one-year period which follows the termination

16

 

of such employee’s employment with the Company and its affiliates, and (ii) the Executive will
not, whether for his own account or for the account of any other person, firm, corporation or other
business organization, intentionally interfere with the Company’s or any of its affiliates’
relationship with, or endeavor to entice away from the Company or any of its affiliates, any person
who during the Term is or was a customer or client of the Company or any of its affiliates.

     6.2. Rights and Remedies upon Breach. The Executive acknowledges and agrees that any
breach by him of any of the provisions of Section 6.1 (the “Restrictive Covenants”) would result in
irreparable injury and damage for which money damages would not provide an adequate remedy.
Therefore, if the Executive breaches, or threatens to commit a breach of, any of the provisions of
Section 6.1, the Company and its affiliates, in addition to, and not in lieu of, any other rights
and remedies available to the Company and its affiliates under law or in equity (including, without
limitation, the recovery of damages), shall have the right and remedy to have the Restrictive
Covenants specifically enforced by any court having equity jurisdiction, including, without
limitation, the right to an entry against the Executive of restraining orders and injunctions
(preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and
whether or not then continuing, of such covenants.

     7. Other Provisions.

     7.1. Severability. The Executive acknowledges and agrees that (i) he has had an
opportunity to seek advice of counsel in connection with this Agreement and (ii) the Restrictive
Covenants are reasonable in geographical and temporal scope and in all other respects. If it is
determined that any of the provisions of this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the

17

 

provisions of this Agreement shall not thereby be affected and shall be given full effect,
without regard to the invalid portions.

     7.2. Duration and Scope of Covenants. If any court or other decision-maker of
competent jurisdiction determines that any of the Executive’s covenants contained in this
Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, is
unenforceable because of the duration or geographical scope of such provision, then, after such
determination has become final and unappealable, the duration or scope of such provision, as the
case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form,
such provision shall then be enforceable and shall be enforced.

     7.3. Enforceability; Jurisdiction; Arbitration. Any controversy or claim arising out
of or relating to this Agreement or the breach of this Agreement (other than a controversy or claim
arising under Section 6, to the extent necessary for the Company (or its affiliates, where
applicable) to avail itself of the rights and remedies referred to in Section 6.2) that is not
resolved by the Executive and the Company (or its affiliates, where applicable) shall be submitted
to arbitration in the greater Washington, D.C. metropolitan area in accordance with Maryland law
and the procedures of the American Arbitration Association. The determination of the arbitrator(s)
shall be conclusive and binding on the Company (or its affiliates, where applicable) and the
Executive and judgment may be entered on the arbitrator(s)’ award in any court having jurisdiction.

     7.4. Legal Fees. The Company shall pay directly or reimburse the Executive for all
reasonable legal fees and expenses incurred by the Executive in connection with the review,
negotiation and execution of this Agreement.

18

 

     7.5. Notices. Any notice or other communication required or permitted hereunder shall
be in writing and shall be delivered personally, telegraphed, telexed, sent by facsimile
transmission or sent by certified, registered or express mail, postage prepaid. Any such notice
shall be deemed given when so delivered personally, telegraphed, telexed or sent by facsimile
transmission or, if mailed, five days after the date of deposit in the United States mails as
follows:

	 	(i)	 	If to the Company, to:

7315 Wisconsin Avenue

Suite 205 East

Bethesda, MD 20814

Attention: Barry E. Johnson

	 	 	 	with a copy to:

Hunton & Williams LLP

Riverfront Plaza, East Tower

951 East Byrd Street

Richmond, VA 23219

Attention: Daniel M. LeBey

	 	(ii)	 	If to the Executive, to the address set forth
on the signature page hereof.

Any such person may by notice given in accordance with this Section 7.5 to the other parties hereto
designate another address or person for receipt by such person of notices hereunder.

     7.6. Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior agreements, written or
oral, with respect thereto.

     7.7. Waivers and Amendments. This Agreement may be amended, superseded, canceled,
renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any
party in exercising any right, power or privilege hereunder shall operate

19

 

as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or
privilege nor any single or partial exercise of any such right, power or privilege, preclude any
other or further exercise thereof or the exercise of any other such right, power or privilege.

     7.8. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF MARYLAND WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW WHICH
COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF MARYLAND.

     7.9. Assignment. This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors, heirs (in the case of the Executive) and assigns. No
rights or obligations of the Company under this Agreement may be assigned or transferred by the
Company except that such rights or obligations may be assigned or transferred, subject to Section
5.3, pursuant to a merger or consolidation in which the Company is not the continuing entity, or
the sale or liquidation of all or substantially all of the assets of the Company; provided,
however, that the assignee or transferee is the successor to all or substantially all of the assets
of the Company and such assignee or transferee assumes the liabilities, obligations and duties of
the Company, as contained in this Agreement, either contractually or as a matter of law.

     7.10. Withholding. The Company shall be entitled to withhold from any payments or
deemed payments any amount of tax withholding it determines to be required by law.

     7.11. Binding Effect. This Agreement shall be binding upon and inure to the benefit
of the parties and their respective successors, permitted assigns, heirs, executors and legal
representatives.

20

 

     7.12. Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original but all such
counterparts together shall constitute one and the same instrument. Each counterpart may consist
of two copies hereof each signed by one of the parties hereto.

     7.13. Survival. Anything contained in this Agreement to the contrary notwithstanding,
the provisions of Sections 5 and 6 and any other provisions of this Agreement expressly imposing
obligations that survive termination of Executive’s employment hereunder, and the other provisions
of this Section 7 to the extent necessary to effectuate the survival of such provisions, shall
survive termination of this Agreement and any termination of the Executive’s employment hereunder.

     7.14. Existing Agreements. The Executive represents to the Company that he is not
subject or a party to any employment or consulting agreement, non-competition covenant or other
agreement, covenant or understanding which might prohibit him from executing this Agreement or
limit his ability to fulfill his responsibilities hereunder.

     7.15. Headings. The headings in this Agreement are for reference only and shall not
affect the interpretation of this Agreement.

21

 

     IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first
above written.

	 	 	 	 	 
	 	ASSET CAPITAL CORPORATION, INC.

 	 
	 	By:  	/s/ Peter C. Minshall
 	 
	 	 	Name:  	Peter C. Minshall 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 	 
	 	 	 	 
	 	 	                                                   /s/ William B. LeBlanc
 	 
	 	 	William B. LeBlanc, III 	 
	 	 	7315 Wisconsin Avenue

Suite 205 East

Bethesda, MD  20814 	 

22

 

	 	 	 	 	 	 

EXHIBIT A

List of Excluded Investments

     Investments or activities involved with the following:

	 	1)	 	Ownership interest in Bee Ridge Plaza LLC, which owns the Bee Ridge Plaza
shopping center located in Sarasota, Florida.
	 
	 	2)	 	Ownership interest in an apartment complex located in Prince Georges County,
Maryland.

     Future investments or activities sponsored by:

	 	1)	 	The Zitelman Group or its affiliates; and
	 
	 	2)	 	The Patriot Group

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]