Document:

exv10w1

Exhibit 10.1

SEPARATION AGREEMENT AND RELEASE 

     This Separation Agreement and Release (“Agreement”) is made and entered into this 28th day of
July, 2009, by and between TIM BRUCE (“YOU” or “YOUR”) and DEVELOPERS DIVERSIFIED REALTY
CORPORATION (“DDR”). This Agreement also will be binding on YOUR heirs, successors and assigns.

     DDR and YOU have agreed that YOUR employment with DDR will terminate on October 27, 2009
(“Separation Date”). Pursuant to the terms of YOUR Amended and Restated Employment Agreement
(attached at Exhibit A), this will be designated a termination without cause and YOU acknowledge
that DDR has provided you with ninety-days’ notice. YOU will be deemed to have resigned from all
offices and directorships with DDR as of the Separation Date.

     Under the terms of this Agreement, DDR and YOU further agree as follows:

	1.	 	Based upon the consideration set forth in this Agreement (as described in Paragraph 5), YOU
agree to release DDR, its successors, owners, assigns, divisions, affiliates, Board, officers,
trustees, shareholders, directors, and employees (hereinafter collectively termed the “DDR
Released Parties”) from any claims that have arisen or may arise out of YOUR employment with
and separation from DDR, whether now known or unknown, including, but not limited to, all
claims for wrongful discharge; constructive discharge; all claims of breach of express or
implied contract, or promissory estoppel; all claims for damages resulting from injuries,
harassment, mental anguish and emotional distress;

 

 

	 	 	any claim of discrimination on any basis including race, color, national origin, religion, sex,
age or disability arising under any federal, state or local statute, ordinance, order or law;
all claims of breach of public policy or tort; all claims of defamation; and all other claims
under Ohio or federal law, including, but not limited to, age discrimination under the federal
Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., Ohio R.C. Chapter 4112, and/or
discrimination under Title VII of the 1964 Civil Rights Act, as amended by the Civil Rights Act
of 1991, 42 U.S.C. § 1981, and 42 U.S.C. § 1983. While YOU acknowledge and understand that by
this Agreement YOU release, among other things, any and all past and present rights to recover
money damages arising out of YOUR employment and termination, the parties agree that this
Agreement shall not preclude YOU from filing any charge with the EEOC (or other governmental
agency) or from in any way participating in any investigation, hearing, or proceeding of the
EEOC (or other governmental agency).
	 
	2.	 	DDR’s officers, directors and executives and YOU agree not to defame, disparage or otherwise
attempt to damage, or encourage any third party to defame, disparage or otherwise attempt to
damage, YOUR name or YOUR reputation, as well as that of DDR, its shareholders, directors,
officers, or employees.
	 
	3.	 	DDR agrees that in the event any prospective employer inquires of DDR as to a reference for
YOU, DDR will, unless otherwise directed by YOU in writing, disclose only the dates of YOUR
employment, the positions YOU held, and the base salary YOU were

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	 	 	earning at the time of YOUR separation. All reference requests will be directed to Human
Resources.
	 
	4.	 	DDR agrees that it will not contest any claim for unemployment compensation made by YOU.
However, DDR will truthfully respond to any inquiry from the Ohio unemployment commission.
	 
	5.	 	YOUR final day of employment is the Separation Date, and any benefits provided to YOU
pursuant to YOUR employment with DDR ceases as of the Separation Date unless otherwise
specifically provided at law or under this Agreement. As consideration for this Agreement, YOU
shall receive severance pay equal to two times YOUR current base salary and two times YOUR
maximum bonus opportunity for 2009 (which YOU and DDR agree equals a total gross amount of
$1,278,000), which will be payable in a lump sum payment, less all applicable deductions, on
the 15th day of the first calendar month following the Six Month Date (as such term
is defined in YOUR Amended and Restated Employment Agreement (Exhibit A)) following the
conclusion of the Revocation Period (as described in Paragraph 6) without YOUR revoking this
Agreement. DDR also will continue YOUR health and dental benefits for YOU and YOUR eligible
dependents (as defined by the applicable plan or plans) for a period of two years beginning
with the Separation Date, unless and until YOU are eligible to receive from a subsequent
employer alternative health and dental benefits which are substantially equivalent or greater
than the health and dental benefits provided under this Agreement. The health

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	 	 	and dental coverage that YOU and YOUR family will receive is the same coverage YOU now receive
as an active employee and will be provided under the same terms granted to active employees.
DDR also will provide you with one year of outplacement services to be determined and arranged
to the mutual satisfaction of YOU and DDR. YOU acknowledge (a) the sufficiency of the
consideration described above for YOUR promises and the general release detailed in this
Agreement and (b) that the payments, benefits and services described in this Paragraph 5 include
(i) all amounts to which you would be entitled under YOUR Amended and Restated Employment
Agreement (Exhibit A), subject to your execution and non-revocation of this Agreement, and (ii)
additional payments, benefits and services substantially in excess of the amounts to which you
would be entitled under YOUR Amended and Restated Employment Agreement (Exhibit A).
	 
	6.	 	YOU acknowledge that DDR has advised YOU that the release contained in this Agreement does
not apply to any rights or claims that may arise after the execution date of this Agreement.
YOU further acknowledge that DDR has advised you to consult with an attorney before signing
this Agreement. YOU also acknowledge that YOU were offered up to twenty-one (21) days to
consider this Agreement. For seven (7) days after this Agreement is executed (the “Revocation
Period”), YOU have the right to revoke the Agreement. This Agreement shall not become
effective or enforceable, and YOU shall not receive the benefits of Paragraph 5 above, until
such revocation period has expired.

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	 	 	YOUR written notice of the revocation of this Release shall be delivered by certified or
registered mail (first class postage pre-paid), guaranteed overnight delivery or personal
delivery to the following address: Senior Vice President of Human Resources, Developers
Diversified Realty Corporation, 3300 Enterprise Parkway, Beachwood, Ohio 44122.
	 
	7.	 	You acknowledge that the promises referred to in Paragraph 5 are solely in exchange for the
promises in this Agreement and are not normally available to DDR’s employees. YOU further
acknowledge that DDR’s agreement to pay and provide the amounts described in Paragraph 5 does
not constitute an admission by the DDR Released Parties of liability or of violation of any
applicable law or regulation. DDR states that payment has been made solely for the purpose of
compromising any and all claims without the cost and burden of litigation and in light of YOUR
service as an employee and the parties’ desire to accomplish a mutually amicable separation.
	 
	8.	 	As of July 28, 2009, YOU shall deliver to Human Resources any property of DDR in YOUR control
or possession, including keys, documents, computer software and hardware, manuals, office
equipment, phones and PDAs, credit cards and files.
	 
	9.	 	The applicable provisions of the DDR plans covering equity and incentive awards shall govern
any equity and incentive awards previously granted to YOU.
	 
	10.	 	This Agreement, including without limitation the release provisions, is being presented in
accordance with and shall be deemed to fully satisfy DDR’s obligations and rights

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	 	 	under Section 6 of YOUR Amended and Restated Employment Agreement (Exhibit A). YOUR failure to
execute and return this Agreement relieves DDR of any obligation to make payments to you under
Section 5(d) of YOUR Amended and Restated Employment Agreement (Exhibit A) or otherwise
(including under Paragraph 5 of this Agreement).
	 
	11.	 	YOUR covenants and obligations, as more fully described in Section 7 of YOUR Amended and
Restated Employment Agreement (Exhibit A), remain in full force and effect; provided,
however, that notwithstanding anything in this Agreement to the contrary, YOUR
compliance with YOUR covenant not to compete, as provided for in Section 7(a)(i) of YOUR
Amended and Restated Employment Agreement (Exhibit A), is hereby waived by DDR. Additionally,
your obligations detailed in Section 9(b) of YOUR Amended and Restated Employment Agreement
(Exhibit A) remain in full force and effect, and DDR’s obligations provided for under Section
8 of YOUR Amended and Restated Employment Agreement (Exhibit A) remain in full force and
effect. These obligations shall survive, regardless of any other breach of this Agreement.
	 
	12.	 	YOU also acknowledge that YOU have carefully read and fully understand the terms,
considerations, and consequences of this Agreement, including the release of any of YOUR
potential claims. YOU further acknowledge that YOU have not relied upon any other
representations or statements, whether written or oral, and that this Agreement contains the
entire agreement between YOU and DDR regarding the termination of your

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	 	 	employment with DDR. YOU further acknowledge that the covenants and promises made by YOU in
this Agreement are in consideration of the payments and other promises made hereunder by the
DDR, which YOU acknowledge to be sufficient, just and adequate consideration for YOUR covenants
and promises. YOU acknowledge that but for YOUR execution of this Agreement, YOU would not be
entitled to the amounts being paid to YOU, or on YOUR behalf, hereunder.
	 
	13.	 	In the event that any provision of this Agreement, with the exception of YOUR release of
claims, is found, by any court or governmental agency, to be unlawful or unenforceable, DDR
and YOU have the right to require the other party to continue complying with the remaining
provisions of this Agreement or the Agreement as a whole as may be modified by the court. In
the event of a breach of this Agreement by YOU or DDR, either party may seek relief and/or
enforcement in a court of competent jurisdiction.
	 
	14.	 	The parties agree that: (a) neither this Agreement nor compliance with its terms shall be
construed as an admission by DDR Released Parties as a violation of any statutory,
contractual, quasi-contractual, common law or other right of YOURS; and (b) neither this
Agreement nor the fact of its delivery to YOU shall be admissible in any proceeding as
evidence of unlawful or improper conduct by DDR Released Parties. DDR Released Parties
expressly disclaim any liability to YOU arising out of YOUR employment, separation of
employment and otherwise.

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	15.	 	The Parties agree that this Agreement shall be construed in accordance with Ohio law, that
any action brought by any party hereunder may be instituted and maintained only in the
appropriate court having jurisdiction over Cuyahoga County, Ohio, and that this Agreement
shall be interpreted in accordance with the plain meaning of its terms and not strictly for or
against any party.

	 	 	 	 	 
	 	 	DEVELOPERS DIVERSIFIED REALTY CORPORATION
	 
	 	 	 	 
	 
	 	 	 	 
	/s/ Timothy J. Bruce

	 	By:
	 	/s/ Nan R. Zieleniec
	 

	 	 	 	 
	Tim Bruce

	 	 	 	Name:  Nan R. Zieleniec
	 

	 	 	 	Title:    Senior Vice President of Human Resources
	 
	 	 	 	 
	 
	 	 	 	 
	Date: 7/28/09	 	Date: 7-28-09

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Exhibit A

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

               THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Employment Agreement”) is entered into
as of the 29th day of December 2008, between Developers Diversified Realty Corporation,
an Ohio corporation (the “Company”), and Timothy J. Bruce (the “Executive”).

WITNESSETH:

               WHEREAS, the Company desires to employ the Executive, and the Executive desires to be employed
by the Company, on the terms and subject to the conditions set forth herein; and

               WHEREAS, the Company and the Executive desire for this Employment Agreement to amend and
supersede any prior employment agreements between the Company and the Executive.

               NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties agree as
follows:

	1.	 	Employment.

	 	(a)	 	The Company hereby employs the Executive as its Executive Vice President of
Development, and the Executive hereby accepts such employment, on the terms and subject
to the conditions hereinafter set forth.
	 
	 	(b)	 	During the term of this Employment Agreement, the Executive shall be and have
the title of Executive Vice President of Development and shall devote all of his
business time and all reasonable efforts to his employment and perform diligently such
duties as are customarily performed by Executive Vice Presidents of Development of
companies similar in size to, and in a similar business as, the Company, together with
such other duties as may be reasonably requested from time to time by the Senior
Executive Vice President, President or Chief Executive Officer of the Company or the
Board of Directors of the Company (the “Board”), which duties shall be consistent with
his positions previously set forth and as provided in Paragraph 2.

	2.	 	Term and Positions.

	 	(a)	 	The period of employment of the Executive by the Company shall, subject to
earlier termination as provided in this Employment Agreement, continue until December
31, 2009, with automatic one year renewals thereafter. Notwithstanding the foregoing,
this Employment Agreement may be terminated by the Company with “cause” (as hereinafter
defined) at any time and without cause upon not less than ninety (90) days prior
written notice to the Executive.
	 
	 	(b)	 	During the term of this Employment Agreement, the Executive shall be entitled
to serve as the Executive Vice President of Development of the Company. For service as
an officer and employee of the Company, the Executive shall be entitled to the full
protection of the applicable indemnification provisions of the articles of
incorporation and code of regulations of the Company, as the same may be amended from
time to time,

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	 	 	 	and any Indemnification Agreement between the Company and the Executive that was in
effect as of December 28, 2008 and as the same may be amended from time to time
thereafter (the “Indemnification Agreement”).
	 
	 	(c)	 	If:

	 	(i)	 	the Company materially changes the Executive’s duties and
responsibilities as set forth in Paragraphs 1(b) and 2(b) without his consent;
	 
	 	(ii)	 	the Executive’s place of employment or the principal executive
offices of the Company are located more than fifty (50) miles from the
geographical center of Cleveland, Ohio; or
	 
	 	(iii)	 	there occurs a material breach by the Company of any of its
obligations under this Employment Agreement, which breach has not been cured in
all material respects within thirty (30) days after the Executive gives notice
thereof to the Company;

	 	 	 	then in any such event the Executive shall have the right to terminate his
employment with the Company, but such termination shall not be considered a
voluntary resignation or termination of such employment or of this Employment
Agreement by the Executive but rather a discharge of the Executive by the Company
without “cause” (as defined in Paragraph 5(a)(ii)).
	 
	 	(d)	 	The Executive shall be deemed not to have consented to any written proposal
calling for a material change in his duties and responsibilities unless the Executive
shall give written notice of his consent thereto to the Board within fifteen (15) days
after receipt of such written proposal. If the Executive shall not have given such
consent, the Company shall have the opportunity to withdraw such proposed material
change by written notice to the Executive given within ten (10) days after the end of
said fifteen (15) day period.
	 
	 	(e)	 	Notwithstanding anything in this Employment Agreement to the contrary, if there
shall occur a “Change in Control” and a “Triggering Event” (as those terms are defined
in the Amended and Restated Change in Control Agreement, dated December 29, 2008,
between the Company and the Executive (the “Change in Control Agreement”)) under
circumstances entitling the Executive to payments and benefits as specified in
Article II, Paragraph 1 of the Change in Control Agreement, payments to the Executive
will be governed by the Change in Control Agreement and the Executive shall not be
entitled to any additional benefits under this Employment Agreement except as to that
portion of any unpaid salary and other benefits accrued and earned by the Executive
hereunder up to and including the Termination Date (as defined in Paragraph 5(f)).

	3.	 	Compensation.
	 
	 	 	During the term of this Employment Agreement, the Company shall pay or provide, as the case
may be, to the Executive the compensation and other benefits and rights set forth in this
Paragraph 3.

	 	(a)	 	The Company shall pay to the Executive a base salary payable in accordance with
the Company’s usual pay practices (and in any event no less frequently than monthly) of
not less than Three Hundred Fifty-Five Thousand Dollars ($355,000) per annum, subject
to such increases as the Board may approve.

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	 	(b)	 	In addition to an annual base salary, if the Executive achieves the factors and
criteria for bonus payments hereinafter described for any fiscal year of the Company
throughout which the Executive is employed by the Company, then the Company shall pay
to the Executive bonus compensation for such fiscal year, not later than 75 days
following the end of the fiscal year, determined and calculated in accordance with the
percentages set forth on Exhibit A attached hereto. The Company’s award of bonus
compensation to the Executive shall be determined by the factors and criteria,
including the financial performance of the Company and the performance by the Executive
of his duties hereunder, that may be established from time to time for the calculation
of bonus awards by the Executive Compensation Committee (the “Committee”) of the Board.
(Note that in certain circumstances the Executive may be entitled to a pro rata bonus
for a partial fiscal year of the Company as provided in Paragraph 4(a) or 5(d).)
	 
	 	(c)	 	The Company shall provide to the Executive such life, disability, medical,
hospitalization and dental insurance for the Executive, his spouse and eligible family
members as may be determined by the Board to be consistent with industry standards.
	 
	 	(d)	 	The Executive shall participate in all retirement and other benefit plans of
the Company generally available from time to time to employees of the Company and for
which the Executive qualifies under the terms thereof (and nothing in this Employment
Agreement shall or shall be deemed to in any way affect the Executive’s rights and
benefits thereunder except as expressly provided herein).
	 
	 	(e)	 	The Executive shall be entitled to such periods of vacation and sick leave
allowance each year as are determined by the Chief Executive Officer or the President
of the Company in his reasonable and good faith discretion, which in any event shall be
not less than four weeks per year or as otherwise provided under the Company’s vacation
and sick leave policy for executive officers.
	 
	 	(f)	 	The Executive shall be entitled to participate in any equity or other employee
benefit plan that is generally available to senior executive officers, as distinguished
from general management, of the Company. The Executive’s participation in and benefits
under any such plan shall be on the terms and subject to the conditions specified in
the governing documents of the particular plan.
	 
	 	(g)	 	The Company shall reimburse the Executive or provide the Executive with an
expense allowance during the term of this Employment Agreement for travel,
entertainment and other expenses reasonably and necessarily incurred by the Executive
in connection with the Company’s business. The Executive shall furnish such
documentation with respect to reimbursement to be paid hereunder as the Company shall
reasonably request.
	 
	 	(h)	 	So long as the Executive remains in the employment of the Company, the Company
shall pay to the Executive an automobile allowance of $500 per month as may be adjusted
from time to time. All expenses related to all automobiles owned by the Executive shall
be the sole responsibility of the Executive.

	4.	 	Payment in the Event of Death or Disability.

	 	(a)	 	Except as otherwise provided in Paragraph 4(a)(i), in the event of the
Executive’s death or if the Company terminates the Executive’s employment by reason of
the Executive becoming “disabled” (as hereinafter defined) during the term of this
Employment Agreement, the Company shall pay to the Executive (or the successors and
assigns of the

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	 	 	 	Executive in the event of his death) an amount equal to the sum of (x) the
Executive’s then effective per annum rate of salary, as determined under Paragraph
3(a), plus (y) a bonus amount prorated up to and including the Termination Date and
determined as specified in Paragraph 4(a)(ii) (a “Pro Rata Bonus Amount”), and shall
continue the benefits described in Paragraph 3(c) for the Executive (except in the
case of death) and the Executive’s family for a period of one (1) year.

	 	(i)	 	The Company will not be obligated to pay or provide any of the
amounts or benefits specified in Paragraph 4(a) unless either (A) the Company
is deemed to have waived the obligation to provide a Release as provided in
Paragraph 6(b) or (B) the Executive or the Executive’s personal representative
has timely executed a Release as contemplated by Paragraph 6(c) and has not
revoked such Release during any applicable revocation period.
	 
	 	(ii)	 	The Pro Rata Bonus Amount shall be determined by first
calculating a pro forma full year annual bonus amount for the Executive for the
entire fiscal year in which the termination occurs in the manner specified in
the last sentence of this Paragraph 4(a)(ii) and then multiplying the amount of
the pro forma full year annual bonus amount (so calculated) by a fraction, the
numerator of which is the number of days in that portion of the fiscal year
ending on the Termination Date and the denominator of which is the number of
days in the entire fiscal year. The pro forma full year annual bonus amount
shall be calculated on the same date and in the same manner as if the
Executive’s employment had continued throughout the end of the fiscal year,
using actual results for the entire fiscal year, and, insofar as the
Executive’s individual performance may be a factor, assuming that the Executive
had performed throughout the fiscal year at the same level at which the
Executive actually performed during the fiscal year up to the Termination Date.

	 	(b)	 	The Company will pay the amount equal to one year of salary pursuant to
Paragraph 4(a)(x) (i) in the event of the Executive’s death, as soon as practicable
following the Executive’s death, but in no event later than March 15 of the year after
the year in which the Executive’s death occurs (provided that neither the Executive nor
the Executive’s estate may designate the taxable year of payment), and (ii) in the
event of the Company’s termination of the Executive’s employment by reason of the
Executive’s becoming disabled, except as otherwise provided in Section B.2 of the Tax
Provision Exhibit attached to this Employment Agreement as Exhibit B, during the
Seventh Month after the Termination Date (as defined in Section B.1 of the Tax
Provision Exhibit). The Company will pay the Pro Rata Bonus Amount pursuant to
Paragraph 4(a)(y) on the date on which the Company generally pays bonuses for the
fiscal year during which the termination of employment occurred (but not later than
March 15 of the immediately following year). To assure compliance with Section 409A of
the Internal Revenue Code, the timing of the provision of the benefits described in
Paragraph 3(c) will be subject to Sections B.1 and B.3 of the Tax Provision Exhibit if
and to the extent either of those sections is applicable according to its terms.
	 
	 	(c)	 	For purposes of this Employment Agreement, the Executive shall become
“disabled” only in the event of a permanent disability. Executive’s “disability” shall
be deemed to have occurred after one hundred twenty (120) days in the aggregate during
any consecutive twelve (12) month period, or after ninety (90) consecutive days, during
which one hundred twenty (120) or ninety (90) days, as the case may be, the Executive,

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	 	 	 	by reason of his physical or mental disability or illness, shall have been unable to
discharge his duties under this Employment Agreement. The date of disability shall
be such one hundred twentieth (120th ) or ninetieth (90th ) day, as the case may be.
In the event either the Company or the Executive, after receipt of notice of the
Executive’s disability from the other, dispute that the Executive’s permanent
disability shall have occurred, the Executive shall promptly submit to a physical
examination by the chief of medicine of any major accredited hospital in the
Cleveland, Ohio, area and, unless such physician shall issue a written statement to
the effect that in the physician’s opinion, based on the physician’s diagnosis, the
Executive is capable of resuming his employment and devoting full time and energy to
discharging his duties within thirty (30) days after the date of such statement,
such permanent disability shall be deemed to have occurred.

	5.	 	Termination.

	 	(a)	 	The employment of the Executive under this Employment Agreement, and the terms
hereof, may be terminated by the Company:

	 	(i)	 	on the death of the Executive or if the Executive becomes
disabled (as previously defined);
	 
	 	(ii)	 	for cause at any time by action of the Board. For purposes
hereof, the term “cause” shall mean:

	 	(A)	 	The Executive’s fraud, commission of a felony
or of an act or series of acts which result in material injury to the
business reputation of the Company, commission of an act or series of
repeated acts of dishonesty which are materially inimical to the best
interests of the Company, or the Executive’s willful and repeated
failure to perform his duties under this Employment Agreement, which
failure has not been cured within fifteen (15) days after the Company
gives notice thereof to the Executive; or
	 
	 	(B)	 	The Executive’s material breach of any
provision of this Employment Agreement, which breach has not been cured
in all substantial respects within ten (10) days after the Company
gives notice thereof to the Executive; or

	 	(iii)	 	without cause pursuant to written notice provided to the
Executive not less than ninety (90) days in advance of the Termination Date.

	 	 	 	The exercise by the Company of its rights of termination under this Paragraph 5
shall be the Company’s sole remedy if such right to terminate arises. Upon any
termination of this Employment Agreement, the Executive shall be deemed to have
resigned from all offices and directorships held by the Executive in the Company.
	 
	 	(b)	 	In the event of a termination claim by the Company to be for “cause” pursuant
to Paragraph 5(a)(ii), the Executive shall have the right to have the justification for
said termination determined by arbitration in Cleveland, Ohio. In order to exercise
such right, the Executive shall serve on the Company within thirty (30) days after
termination a written request for arbitration. The Company immediately shall request
the appointment of an arbitrator by the American Arbitration Association and thereafter
the question of “cause” shall be determined under the rules of the American Arbitration
Association, and the decision of the arbitrator shall be final and binding upon both
parties. The parties

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	 	 	 	shall use all reasonable efforts to facilitate and expedite the arbitration and
shall act to cause the arbitration to be completed as promptly as possible. During
the pendency of the arbitration, the Executive shall continue to receive all
compensation and benefits to which the Executive is entitled hereunder, and if at
any time during the pendency of such arbitration the Company fails to pay and
provide all compensation and benefits to the Executive in a timely manner the
Company shall be deemed to have automatically waived whatever rights it then may
have had to terminate the Executive’s employment for cause. Expenses of the
arbitration shall be borne equally by the parties except as otherwise determined by
the arbitrator.
	 
	 	(c)	 	In the event of termination for any of the reasons set forth in subparagraph
(a) of this Paragraph 5, except as otherwise provided in Paragraphs 3(d), 4(a) and
5(d), the Executive shall be entitled to no further compensation or other benefits
under this Employment Agreement, except as to that portion of any unpaid salary and
other benefits accrued and earned by the Executive hereunder up to and including the
Termination Date.
	 
	 	(d)	 	Except as provided in Paragraph 5(d)(i), in the event of the termination by the
Company of the Executive without “cause” (other than as described in Paragraph 2(e)),
or in the event of a termination by the Executive for reasons set forth in Paragraph
2(c), the Company shall pay to the Executive an amount equal to the sum of (x) the
Executive’s then effective per annum rate of salary, as determined under Paragraph
3(a), plus, (y) a Pro Rata Bonus Amount (determined in the same manner as provided in
Paragraph 4(a) in the event of termination due to death or disability), and shall
continue the benefits described in Paragraph 3(c) for a period of one (1) year.

	 	(i)	 	The Company will not be obligated to pay or provide any of the
amounts or benefits specified in Paragraph 5(d) unless either (A) the Company
is deemed to have waived the obligation to provide a Release as provided in
Paragraph 6(b) or (B) the Executive has timely executed a Release as
contemplated by Paragraph 6(c) and has not revoked such Release during any
applicable revocation period.

	 	(e)	 	Except as otherwise provided in Section B.2 of the Tax Provision Exhibit, (i)
the Company will pay the amount equal to one year of salary pursuant to Paragraph
5(d)(x) during the Seventh Month after the Termination Date. The Company will pay the
Pro Rata Bonus Amount pursuant to Paragraph 5(d)(y) on the date on which the Company
generally pays bonuses for the fiscal year during which the termination of employment
occurred (but not later than March 15 of the immediately following year). To assure
compliance with Section 409A of the Internal Revenue Code, the timing of the provision
of the benefits described in Paragraph 3(c) will be subject to Sections B.1 and B.3 of
the Tax Provision Exhibit if and to the extent either of those sections is applicable
according to its terms.
	 
	 	(f)	 	For all purposes of this Employment Agreement, the term “Termination Date”
means the date on which the Executive’s employment with the Company terminates.

	6.	 	Release. This Paragraph 6 will apply only upon termination of the Executive’s
employment (x) by reason of death or disability (as contemplated by Paragraph 4) or (y) by the
Company without “cause” or by the Executive for reasons set forth in Paragraph 2(c) (as
contemplated by Paragraph 5(d)).

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	 	(a)	 	Presentation of Release by the Company. If this Paragraph 6 applies,
the Company may present to the Executive (or in the case of the Executive’s death or
legal incapacity, to the Executive’s personal representative), not later than 21 days
after the Termination Date, a form of release (a “Release”) of all current and future
claims, known or unknown, arising on or before the date on which the Release is to be
executed, that the Executive or the Executive’s assigns have or may have against the
Company or any subsidiary, and the directors, officers, and affiliates of any of them,
in such form as may reasonably be presented by the Company together with a covering
message in which the Company advises the Executive (or the Executive’s personal
representative) that the Release is being presented in accordance with this Paragraph 6
and that a failure by the Executive (or the Executive’s personal representative) to
execute and return the Release as contemplated by Paragraph 6(c) would relieve the
Company of the obligation to make payments otherwise due to the Executive (or to the
Executive’s personal representative) under one or more portions of either of
Paragraph 4(a) or Paragraph 5(d), as the case may be.
	 
	 	(b)	 	Effect of Failure by the Company to Present Release. If the Company
fails to present a Release and covering message to the Executive (or the Executive’s
personal representative) as contemplated by Paragraph 6(a) within 21 days of the
Termination Date, the Company will be deemed to have waived the requirement that the
Executive (or the Executive’s personal representative) execute a Release as a condition
to receiving payments under any portion of either of Paragraph 4(a) or Paragraph 5(d),
as the case may be.
	 
	 	(c)	 	Execution of Release by the Executive or the Executive’s Personal
Representative. If the Company does present a Release and covering message to the
Executive (or the Executive’s personal representative) as contemplated by Paragraph
6(a) within 21 days of the Termination Date, the Executive (or the Executive’s personal
representative) will have until 50 days after the Termination Date (i.e., at least 29
days after presentation of the Release to the Executive (or the Executive’s personal
representative)) within which to deliver an executed copy of the Release to the Company
and thereby satisfy the condition to receiving payments under any portion of either of
Paragraph 4(a) or Paragraph 5(d), as the case may be, provided that the Executive (or
the Executive’s personal representative) does not revoke the execution of the Release
during any applicable revocation period.
	 
	 	(d)	 	Effect of Failure to Execute Release or of Revocation of Release. If
the Executive (or the Executive’s personal representative) fails to deliver an executed
copy of the Release to the Company within 50 days after the Termination Date or revokes
the execution of the Release during any applicable revocation period, the Executive (or
the Executive’s personal representative) will be deemed to have waived the right to
receive all payments under either of Paragraph 4(a) or Paragraph 5(d), as the case may
be, that were conditioned on the Release.

	7.	 	Covenants and Confidential Information.

	 	(a)	 	The Executive acknowledges the Company’s reliance and expectation of the
Executive’s continued commitment to performance of the Executive’s duties and
responsibilities during the term of this Employment Agreement. In light of such
reliance and expectation on the part of the Company, during the term of this Employment
Agreement and for a period of one (1) year thereafter (and, as to clause (ii) of this
subparagraph (a), at any time

Page 7 

 

	 	 	 	during and after the term of this Employment Agreement), the Executive shall not,
directly or indirectly do or suffer either of the following:

	 	(i)	 	own, manage, control or participate in the ownership,
management or control of, or be employed or engaged by or otherwise affiliated
or associated as a consultant, independent contractor or otherwise with, any
other corporation, partnership, proprietorship, firm, association or other
business entity engaged in the business of, or otherwise engage in the business
of, acquiring, owning, developing or managing commercial shopping centers;
provided, however, that the ownership of not more than one percent (1%) of any
class of publicly traded securities of any entity shall not be deemed a
violation of this covenant; or
	 
	 	(ii)	 	disclose, divulge, discuss, copy or otherwise use or suffer to
be used in any manner, in competition with, or contrary to the interests of,
the Company, any confidential information relating to the Company’s operations,
properties or otherwise to its particular business or other trade secrets of
the Company, it being acknowledged by the Executive that all such information
regarding the business of the Company compiled or obtained by, or furnished to,
the Executive while the Executive shall have been employed by or associated
with the Company is confidential information and the Company’s exclusive
property; provided, however, that the foregoing restrictions shall not apply to
the extent that such information (A) is clearly obtainable in the public
domain, (B) becomes obtainable in the public domain, except by reason of the
breach by the Executive of the terms hereof, (C) was not acquired by the
Executive in connection with the Executive’s employment or affiliation with the
Company, (D) was not acquired by the Executive from the Company or its
representatives or (E) is required to be disclosed by rule of law or by order
of a court or governmental body or agency.

	 	(b)	 	The Executive will not directly or indirectly during the term of this
Employment Agreement and for a period of one (1) year after the expiration of this
Employment Agreement or the termination of Executive’s employment for any reason,
solicit or induce or attempt to solicit or induce any employee(s) of the Company and/or
any subsidiary, affiliated or related companies to terminate their employment with the
Company and/or any subsidiary, affiliated or related companies.
	 
	 	(c)	 	The Executive agrees and understands that the remedy at law for any breach by
the Executive of this Paragraph 7 will be inadequate and that the damages following
from such breach are not readily susceptible to being measured in monetary terms.
Accordingly, it is acknowledged that, upon adequate proof of the Executive’s violation
of any legally enforceable provision of this Paragraph 7, the Company shall be entitled
to immediate injunctive relief and may obtain a temporary order restraining any
threatened or further breach. Nothing in this Paragraph 7 shall be deemed to limit the
Company’s remedies at law or in equity for any breach by the Executive of any of the
provisions of this Paragraph 7 which may be pursued or availed of by the Company.
	 
	 	(d)	 	The Executive has carefully considered the nature and extent of the
restrictions upon him and the rights and remedies conferred upon the Company under this
Paragraph 7, and hereby acknowledges and agrees that the same are reasonable in time
and territory, are designed to eliminate competition which otherwise would be unfair to
the Company, do not stifle the inherent skill and experience of the Executive, would
not operate as a bar to the Executive’s sole means of support, are fully required to
protect the legitimate interests

Page 8 

 

	 	 	 	of the Company and do not confer a benefit upon the Company disproportionate to the
detriment to the Executive.

	8.	 	Tax Provision Exhibit.
	 
	 	 	All of the terms of the Tax Provision Exhibit attached to this Employment Agreement as
Exhibit B are hereby incorporated in this Employment Agreement as fully as if those terms
were included in the main text of this Employment Agreement.
	 
	9.	 	Miscellaneous.

	 	(a)	 	The Executive represents and warrants that the Executive is not a party to any
agreement, contract or understanding, whether employment or otherwise, which would
restrict or prohibit the Executive from undertaking or performing employment in
accordance with the terms and conditions of this Employment Agreement.
	 
	 	(b)	 	During the term of this Employment Agreement and thereafter, the Executive will
provide reasonable assistance to the Company in litigation and regulatory matters that
relate to events that occurred during the Executive’s period of employment with the
Company and its predecessors, and will provide reasonable assistance to the Company
with matters relating to its corporate history from the period of the Executive’s
employment with it or its predecessors. The Executive will be entitled to reimbursement
of reasonable out-of-pocket travel or related costs and expenses relating to any such
cooperation or assistance that occurs following the term of employment.
	 
	 	(c)	 	The provisions of this Employment Agreement are severable and if any one or
more provision may be determined to be illegal or otherwise unenforceable, in whole or
in part, the remaining provision and any partially unenforceable provision to the
extent enforceable in any jurisdiction nevertheless shall be binding and enforceable.
	 
	 	(d)	 	The rights and obligations of the Company under this Employment Agreement shall
inure to the benefit of, and shall be binding on, the Company and its successors and
assigns, and the rights and obligations (other than obligations to perform services) of
the Executive under this Employment Agreement shall inure to the benefit of, and shall
be binding upon, the Executive and his heirs, personal representatives and assigns.
	 
	 	(e)	 	Any controversy or claim arising out of or relating to this Employment
Agreement, or the breach thereof, shall be settled by arbitration in accordance with
the Rules of the American Arbitration Association then pertaining in the City of
Cleveland, Ohio, and judgment upon the award rendered by the arbitrator or arbitrators
may be entered in any court having jurisdiction thereof. The arbitrator or arbitrators
shall be deemed to possess the powers to issue mandatory orders and restraining orders
in connection with such arbitration; provided, however, that nothing in this Paragraph
9(e) shall be construed so as to deny the Company the right and power to seek and
obtain injunctive relief in a court of equity for any breach or threatened breach by
the Executive of any of the covenants contained in Paragraph 7 hereof.
	 
	 	(f)	 	Any notice to be given under this Employment Agreement shall be personally
delivered in writing or shall have been deemed duly given when received after it is
posted in the United States mail, postage prepaid, registered or certified, return
receipt requested, and if mailed to the Company, shall be addressed to its principal
place of business, attention: President, and if mailed to the Executive, shall be
addressed to the Executive at his home

Page 9 

 

	 	 	 	address last known on the records of the Company, or at such other address or
addresses as either the Company or the Executive may hereafter designate in writing
to the other.
	 
	 	(g)	 	The failure of either party to enforce any provision or provisions of this
Employment Agreement shall not in any way be construed as a waiver of any such
provision or provisions as to any future violations thereof, nor prevent that party
thereafter from enforcing each and every other provision of this Employment Agreement.
The rights granted the parties herein are cumulative and the waiver of any single
remedy shall not constitute a waiver of such party’s right to assert all other legal
remedies available to it under the circumstances.
	 
	 	(h)	 	This Employment Agreement supersedes all prior agreements and understandings
between the parties and may not be modified or terminated orally. No modification,
termination or attempted waiver shall be valid unless in writing and signed by the
party against whom the same is sought to be enforced.
	 
	 	(i)	 	This Employment Agreement shall be governed by and construed according to the
laws of the State of Ohio.
	 
	 	(j)	 	Captions and paragraph headings used herein are for convenience and are not a
part of this Employment Agreement and shall not be used in construing it.
	 
	 	(k)	 	Where necessary or appropriate to the meaning hereof, the singular and plural
shall be deemed to include each other, and the masculine, feminine and neuter shall be
deemed to include each other.

               IN WITNESS WHEREOF, the parties have executed this Amended and Restated Employment Agreement
on the day and year first set forth herein.

	 	 	 	 	 	 	 
	 	 	DEVELOPERS DIVERSIFIED REALTY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel B. Hurwitz
 

Daniel B. Hurwitz, President and
	 	     
	 

	 	 	 	Chief Operating Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Timothy J. Bruce	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	TIMOTHY J. BRUCE	 	 

Page 10 

 

EXHIBIT A

INCENTIVE OPPORTUNITY

Bonus As

% of Salary

	 	 	 	 	 
	Threshold
	 	Target
	 	Maximum
	 
	 	 
	 	 
	20%
	 	40%
	 	80%

Exhibits Page 1 of 5

 

EXHIBIT B

Tax Provision Exhibit

280G Gross-Up and Compliance with Section 409A

	A.	 	Gross-Up of Payments Deemed to be Excess Parachute Payments.

	 	A.1	 	Acknowledgement; Determination by Accounting Firm. The Company and the
Executive acknowledge that, following a Change in Ownership or Control, one or more
payments or distributions to be made by the Company or an affiliated entity to or for the
benefit of the Executive under this Employment Agreement or the Change in Control
Agreement (including, without limitation, the issuance of common shares of the Company;
the granting or vesting of restricted shares; and the granting, vesting, exercise or
termination of options) (a “Payment”) may be determined to be an “excess parachute
payment” that is not deductible by the Company or its affiliated entity for Federal
income tax purposes and with respect to which the Executive will be subject to an excise
tax because of Sections 280G and 4999, respectively, of the Internal Revenue Code. If a
Change in Ownership or Control occurs, either the Executive or the Company may direct the
Accounting Firm, which, subject to any inconsistent position asserted by the Internal
Revenue Service, will make all determinations required to be made under this Section A.1,
to determine whether any Payment will be an excess parachute payment and to communicate
its determination, together with detailed supporting calculations, to the Company and to
the Executive within 30 days after its receipt of the direction from the Executive or the
Company, as the case may be. The Company and the Executive will cooperate with each
other and the Accounting Firm and will provide necessary information so that the
Accounting Firm may make all such determinations.
	 
	 	A.2 	 	Gross-Up Payments. If the Accounting Firm determines that any Payment
gives rise, directly or indirectly, to liability on the part of the Executive for excise
tax under Section 4999 (and/or any penalties and/or interest with respect to any such
excise tax), the Company will make additional cash payments (each, a “Gross-Up Payment”)
to the Executive, from time to time in such amounts as are necessary to put the Executive
in the same position, after payment of all federal, state, and local taxes (whether
income taxes, excise taxes under Section 4999 or otherwise, or other taxes) and any and
all penalties and interest with respect to any such excise tax, as the Executive would
have been in after payment of all federal, state, and local income taxes if the Payments
(other than in respect of or regarding any units or awards granted or vested pursuant to
any Performance Unit Agreement between the Executive and the Company, or any equity
awards granted or issued pursuant to any outperformance award plans (including the
Outperformance Long-Term Incentive Plan) or supplemental equity award plans (including
the 2007 Supplemental Equity Plan) of the Company) had not given rise to an excise tax
under Section 4999 and no such penalties or interest had been imposed. The Company’s
obligation to make Gross-Up Payments under this Section A is not contingent on
termination of the Executive’s employment with the Company. The Company will make each
Gross-Up Payment to the Executive within 30 days of the time that the related Payment
constituting an excess parachute payment is paid or provided to the Executive.
	 
	 	A.3 	 	Further Gross-Up Payments as Determined by the IRS. If the Internal
Revenue Service determines that any Payment gives rise, directly or indirectly, to
liability on the part of the Executive for excise tax under Section 4999 (and/or any
penalties and/or interest with respect to any such excise tax) in excess of the amount,
if any, previously determined by the Accounting Firm, the Company will make further
Goss-Up Payments to the Executive in cash and in such amounts as are necessary to put the
Executive in the same position, after payment

Exhibits Page 2 of 5

 

	 	 	 	of all federal, state, and local taxes (whether income taxes, excise taxes under
Section 4999 or otherwise, or other taxes) and any and all penalties and interest with
respect to any such excise tax, as the Executive would have been in after payment of all
federal, state, and local income taxes if the Payments (other than in respect of or
regarding any units or awards granted or vested pursuant to any Performance Unit
Agreement between the Executive and the Company, or any equity awards granted or issued
pursuant to any outperformance award plans (including the Outperformance Long-Term
Incentive Plan) or supplemental equity award plans (including the 2007 Supplemental
Equity Plan) of the Company) had not given rise to an excise tax under Section 4999 and
no such penalties or interest had been imposed. The Company will make any additional
Gross-Up Payments required by this Section A.3 not later than the due date of any payment
indicated by the Internal Revenue Service with respect to the underlying matters to which
the additional Gross-Up relates.
	 
	 	A.4 	 	Contest of IRS Determination by the Company. If the Company desires to
contest any determination by the Internal Revenue Service with respect to the amount of
excise tax under Section 4999, the Executive will, upon receipt from the Company of an
unconditional written undertaking to indemnify and hold the Executive harmless (on an
after tax basis) from any and all adverse consequences that might arise from the
contesting of that determination, cooperate with the Company in that contest at the
Company’s sole expense. Nothing in this Section A will require the Executive to incur
any expense other than expenses with respect to which the Company has paid to the
Executive sufficient sums so that after the payment of the expense by the Executive and
taking into account the payment by the Company with respect to that expense and any and
all taxes that may be imposed upon the Executive as a result of the Executive’s receipt
of that payment, the net effect is no cost to the Executive. Nothing in this Section A
will require the Executive to extend the statute of limitations with respect to any item
or issue in the Executive’s tax returns other than, exclusively, the excise tax under
Section 4999. If, as the result of the contest of any assertion by the Internal Revenue
Service with respect to excise tax under Section 4999, the Executive receives a refund of
a Section 4999 excise tax previously paid and/or any interest with respect thereto, the
Executive will promptly pay to the Company such amount as will leave the Executive, net
of the repayment and all tax effects, in the same position, after all taxes and interest,
that the Executive would have been in if the refunded excise tax had never been paid. To
assure compliance with Section 409A, the Company will make payments to the Executive with
respect to expenses as contemplated in this Section A.4 subject to and as provided in
Sections B.1 and B.3.
	 
	 	A.5 	 	Accounting Firm Fees and Expenses. The Company will bear and pay all fees
and expenses of the Accounting Firm for services performed pursuant to this Section A
(“Applicable Fees and Expenses”). To assure compliance with Section 409A, the Company
will pay any Applicable Fees and Expenses subject to and as provided in Sections B.1 and
B.3.

	B.	 	Compliance with Section 409A.

	 	B.1 	 	Six Month Delay on Certain Payments, Benefits, and Reimbursements. If the
Executive is a “specified employee” for purposes of Section 409A, as determined under the
Company’s policy for determining specified employees on the Termination Date, each
payment, benefit, or reimbursement paid or provided under this Employment Agreement that
constitutes a “deferral of compensation” within the meaning of Section 409A, that is to
be paid or provided as a result of a “separation from service” within the meaning of
Section 409A, and that would otherwise be paid or provided at any time (a “Scheduled
Time”) that is on or before the date (the “Six Month Date”) that is exactly six months
after the Termination Date (other than

Exhibits Page 3 of 5

 

	 	 	 	payments, benefits, or reimbursements that are treated as separation pay under Section
1.409A-1(b)(9)(v) of the Treasury Regulations) will not be paid or provided at the
Scheduled Time but will be accumulated (together with interest at the applicable federal
rate under Section 7872(f)(2)(A) of the Internal Revenue Code in effect on the
Termination Date) through the Six Month Date and paid or provided during the period of 30
consecutive days beginning on the first business day after the Six Month Date (that
period of 30 consecutive days, the “Seventh Month after the Termination Date”), except
that if the Executive dies before the Six Month Date, the payments, benefits, or
reimbursements will be accumulated only through the date of the Executive’s death and
thereafter paid or provided not later than 30 days after the date of death.
	 
	 	B.2 	 	Earlier Payment if Not a Specified Employee. If the Executive is not a
“specified employee” for purposes of Section 409A, as determined under the Company’s
policy for determining specified employees on the Termination Date, any lump sum payment
based on base salary that is to be made by the Company to the Executive pursuant to
either of Paragraph 4(a) or 5(d) will be made by the Company to the Executive during the
30-day period that begins exactly 60 days after the Termination Date rather than during
the Seventh Month after the Termination Date.
	 
	 	B.3 	 	Additional Limitations on Reimbursements and In-Kind Benefits. The
reimbursement of expenses or in-kind benefits described in Paragraph 3(c) pursuant to
either of Paragraph 4(a) or 5(d) or pursuant to any other section of this Employment
Agreement that are taxable benefits (and that are not disability pay or death benefit
plans within the meaning of Section 409A) are intended to comply, to the maximum extent
possible, with the exception to Section 409A set forth in Section 1.409A-1(b)(9)(v) of
the Treasury Regulations. To the extent that any reimbursement of expenses or in-kind
benefits described in Paragraph 3(c) pursuant to either of Paragraph 4(a) or 5(d) or
pursuant to any other section of this Employment Agreement either do not qualify for that
exception, or are provided beyond the applicable time periods set forth in Section
1.409A-1(b)(9)(v) of the Treasury Regulations, then they will be subject to the following
additional rules: (a) any reimbursement of eligible expenses will be paid within 30 days
following the Executive’s written request for reimbursement; provided that the Executive
provides written notice no later than 60 days before the last day of the calendar year
following the calendar year in which the expense was incurred so that the Company can
make the reimbursement within the time periods required by Section 409A; (b) the amount
of expenses eligible for reimbursement, or in-kind benefits provided, during any calendar
year will not affect the amount of expenses eligible for reimbursement, or in-kind
benefits to be provided, during any other calendar year; and (c) the right to
reimbursement or in-kind benefits will not be subject to liquidation or exchange for any
other benefit.
	 
	 	B.4 	 	Compliance Generally. Each payment or reimbursement and the provision of
each benefit under this Employment Agreement shall be considered a separate payment and
not one of a series of payments for purposes of Section 409A. The Company and the
Executive intend that the payments and benefits provided under this Employment Agreement
will either be exempt from the application of, or comply with, the requirements of
Section 409A. This Employment Agreement is to be construed, administered, and governed
in a manner that effects that intent and the Company will not take any action that is
inconsistent with that intent. Without limiting the foregoing, the payments and benefits
provided under this Employment Agreement may not be deferred, accelerated, extended, paid
out, or modified in a manner that would result in the imposition of an additional tax
under Section 409A upon the Executive.

Exhibits Page 4 of 5

 

	 	B.5 	 	Termination of Employment to Constitute a Separation from Service. The
parties intend that the phrase “termination of employment” and words and phrases of
similar import mean a “separation from service” with the Company within the meaning of
Section 409A. The Executive and the Company will take all steps necessary (including
taking into account this Section B.5 when considering any further agreement regarding
provision of services by the Executive to the Company after the Termination Date) to
ensure that (a) any termination of employment under this Employment Agreement constitutes
a “separation from service” within the meaning of Section 409A, and (b) the Termination
Date is the date on which the Executive experiences a “separation from service” within
the meaning of Section 409A.

	C.	 	Definitions.

	 	C.1 	 	Accounting Firm.  The term “Accounting Firm” means the independent auditors
of the Company for the fiscal year immediately preceding the earlier of (a) the year in
which the Termination Date occurred, or (b) the year, if any, in which occurred the first
Change of Control occurring after the date of this Employment Agreement, and that firm’s
successor or successors; unless that firm is unable or unwilling to serve and perform in
the capacity contemplated by this Employment Agreement, in which case the Company must
select another accounting firm that (x) is of recognized regional or national standing
and (y) is not then the independent auditors for the Company or any affiliated
corporation.
	 
	 	C.2 	 	Change in Ownership or Control. The term “Change in Ownership or Control”
has the meaning given to that term (without initial caps) in the Treasury Regulations
published under Section 280G.
	 
	 	C.3 	 	Sections 280G, 409A, and 4999. Each of the terms “Section 280G,” “Section
409A,” and “Section 4999,” respectively, means that numbered section of the Internal
Revenue Code. References in this Employment Agreement to any of these sections are
intended to include any proposed, temporary, or final regulations, or any other guidance,
promulgated with respect to that specific section by the U.S. Department of Treasury or
the Internal Revenue Service.

Exhibits Page 5 of 5exv10w2

Exhibit 10.2

EXECUTION VERSION

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (this “Agreement”) is entered into on July 29, 2009,
between Developers Diversified Realty Corporation, an Ohio corporation (“DDR” or the “Company”),
and Scott A. Wolstein (“Wolstein”).

Wolstein has been and is now serving DDR as its Chairman of the Board of Directors and Chief
Executive Officer. Wolstein and DDR are currently party to an Employment Agreement, dated as of
October 15, 2008, and a Change in Control Agreement, dated as of October 15, 2008. The Board of
Directors of DDR (the “Board”) and Wolstein desire to enter into this Agreement to supersede in its
entirety the existing employment agreement, to supersede and terminate in its entirety the existing
change in control agreement, and to reflect the terms pursuant to which Wolstein will continue to
serve DDR. (Certain capitalized terms used in this Agreement have the meanings ascribed to them in
Section 23 of this Agreement.)

DDR and Wolstein agree, effective as of the date first set forth above (the “Effective Date”), as
follows:

1. Employment, Term. DDR engages and employs Wolstein to render services in the
administration and operation of its affairs as are customarily performed by Chief Executive
Officers of companies similar in size to, and in a similar business as, the Company, together with
such other duties as, from time to time, may be specified by the Board, and expects in the future
to engage and employ Wolstein to render services as are customarily performed by Executive Chairmen
of companies similar in size to, and in a similar business as, the Company, together with such
other duties as, from time to time, may be specified by the Board, in a manner consistent with his
status as Chief Executive Officer or Executive Chairman, as applicable, all in accordance with the
terms and conditions of this Agreement, for a term extending from the Effective Date through
December 31, 2012 (such term being referred to herein as the “Contract Period”).

2. Full-Time Services. Throughout the Contract Period while Wolstein is employed by DDR,
Wolstein will devote all of his business time and efforts to the service of DDR, except for (a)
usual vacation periods and reasonable periods of illness, (b) reasonable periods of time devoted to
his personal financial affairs, and (c) services as a director or trustee of other corporations or
organizations, either for profit or not for profit, that are not in competition with DDR;
provided, that in no event shall Wolstein devote less than 90% of his business time and
efforts to the service of DDR.

3. Executive Officer and Board Member. Unless he is earlier terminated in accordance with
Section 7 hereof, throughout the Contract Period while Wolstein is employed by DDR,
Wolstein will hold either the office of Chief Executive Officer of DDR or Executive Chairman of
DDR, as the Board shall determine, and the Board will use its best efforts to cause Wolstein to be
elected to the Board at each annual meeting of the shareholders of DDR. So long as Wolstein
remains as Chief Executive Officer of DDR: (a) he will not be required to report to any single
individual but will report only to the Board as an entire body; (b) no other individual will be
elected or appointed as Chief Executive Officer of DDR; (c) the President of DDR will report to no
individual other than Wolstein; and (d) no individual or group of individuals
(including any committee established or other designee appointed by the Board) will have any
authority over or equal to the authority of Wolstein in his role as Chief Executive Officer, and
none of DDR, the Board, or any member of the Board will take any action that will or could have the
effect, or appear to have the effect, of giving such authority to any other individual or group.
If and when, during the Contract Period while Wolstein is employed by DDR, the Board determines
that DDR shall engage and

 

 

employ Wolstein as Executive Chairman, unless he is earlier terminated in
accordance with Section 7 hereof, throughout the remainder of the Contract Period while
Wolstein is employed by DDR, Wolstein will hold the office of Executive Chairman of DDR and the
Board will use its best efforts to cause Wolstein to be elected to the Board at each annual meeting
of the shareholders of DDR. The office of Executive Chairman of DDR shall be an executive officer
position.

4. Compensation. For all services to be rendered by Wolstein to DDR under this Agreement
during the Contract Period while Wolstein is employed by DDR, including services as an executive
officer, including as Chief Executive Officer or Executive Chairman, director, Chairman of the
Board, or member of any committee of the Board, or any other services specified by the Board, DDR
will pay and provide to Wolstein the compensation and benefits specified in this Section 4.

4.1 Base Salary. From and after the Effective Date and through the Contract Period
while Wolstein is employed by DDR, DDR will pay Wolstein base salary (the “Base Salary”), in
equal monthly or more frequent installments, at the rate of not less than Eight Hundred and
Seventy-Five Thousand Dollars ($875,000) per year, subject to such increases as the
Committee may approve.

4.2 Annual Cash Bonus. In addition to Base Salary, if Wolstein achieves the
factors and criteria for annual bonus compensation hereinafter described for any calendar
year of the Company (beginning with 2009) during the Contract Period while Wolstein is
employed by DDR, then the Company shall pay an annual bonus to Wolstein, in cash, for such
calendar year (an “Annual Cash Bonus”), not later than 75 days following the end of such
calendar year, determined and calculated in accordance with the percentages set forth on
Exhibit A attached hereto. The Company’s award of an Annual Cash Bonus to Wolstein
shall be determined based on the factors and criteria that may be established from time to
time for the calculation of the Annual Cash Bonus by the Committee after consultation with
Wolstein; provided, that for the Company’s 2009 calendar year, the Annual Cash Bonus
for Wolstein will be determined in accordance with the performance metrics and their
relative weighting set forth on Exhibit A attached hereto. For each of the
Company’s calendar years in the Contract Period subsequent to 2009 while Wolstein is
employed by DDR, the Board or the Committee will provide Wolstein with written notice of the
performance metrics and their relative weighting to be used in, and the specific threshold,
target and maximum performance targets applicable to, the determination of the Annual Cash
Bonus for Wolstein for such calendar year not later than March 15 of such year. There is no
guaranteed Annual Cash Bonus under this Agreement, and for each applicable year, Wolstein’s
Annual Cash Bonus could be as low as zero or as high as the maximum percentage set forth on
Exhibit A attached hereto.

4.3 2009 Retention Equity Award. Subject to the execution of this Agreement by
Wolstein and DDR, the Board will grant to Wolstein, within three business days of the
Effective Date, a one-time award of 400,000 restricted shares, which award may be made under
a retention equity program to be adopted and implemented by DDR. Subject to Sections
8.2(e) and 8.5(e), such restricted shares shall vest on the terms set forth in
the award agreement applicable thereto, but in any event no more favorably than in 25%
annual increments beginning on December 31, 2009 and on each of December 31, 2010, 2011 and
2012.

4.4 Cash Payment. In consideration of the execution of this Agreement by Wolstein
and DDR, DDR will pay Wolstein, within three business days of the Effective Date, a lump-sum
cash payment of $1,000,000.

2

 

4.5 Other Equity Awards. During the Contract Period while Wolstein is employed by
DDR, Wolstein shall be entitled to participate in any equity or other employee benefit plan
that is generally available to senior executive officers, as distinguished from general
management, of the Company, including, without limitation, any long-term incentive
compensation plan or similar program, including the Company’s Value Sharing Equity Program,
a summary of which is attached hereto as Exhibit B (the “Value Sharing Equity
Program”). Wolstein’s participation in and benefits under any such plan or program shall be
on the terms summarized on Exhibit B and subject to such other conditions as are
specified in the governing documents of the particular plan or program. Regarding the Value
Sharing Equity Program, to the extent that (a) by the end of the Contract Period, Wolstein
and DDR have not entered into a subsequent employment agreement or amendment of this
Agreement pursuant to which Wolstein is entitled to remain engaged and employed by DDR after
the Contract Period, and (b) Award Shares have been earned by Wolstein under the Value
Sharing Equity Program, but any Award Shares, any Cash Payments, or any Undelivered Award
Shares earned by Wolstein through the end of the Contract Period have not vested pursuant to
the terms of the Value Sharing Equity Program by the end of the Contract Period (the
“Unvested VSEP Awards”), then such Unvested VSEP Awards shall not be forfeited by Wolstein,
but instead such Unvested VSEP Awards shall remain outstanding and shall continue to vest
according to the original vesting terms set forth for such Unvested VSEP Awards under the
Program and the applicable Notices of Grant, even if Wolstein is no longer employed by DDR
at any time after the end of the Contract Period.

4.6 Taxes. Wolstein shall be solely responsible for taxes imposed on Wolstein by
reason of any compensation and benefits provided under this Agreement, and all such
compensation and benefits shall be subject to applicable withholding taxes.

5. Benefits.

5.1 Retirement and Other Benefit Plans Generally. Throughout the Contract Period
while Wolstein is employed by DDR, Wolstein will be entitled to participate in all
retirement and other benefit plans maintained by DDR that are generally available to its
employees and with respect to which he is eligible pursuant to the terms of the underlying
plan or plans, including, without limitation, the DDR 401(k) plan for its employees and any
DDR deferred compensation program.

5.2 Insurance, Generally. Throughout the Contract Period while Wolstein is
employed by DDR, DDR will provide to Wolstein and his eligible dependents the medical,
hospitalization, vision, and dental insurance coverage and benefits maintained by DDR from
time to time during the Contract Period that are generally available to its employees and
with respect to which he is eligible pursuant to the terms of the underlying plan or plans.

5.3 Insurance, Disability. Except as otherwise provided in the last sentence of
this Section 5.3, DDR will maintain the current disability insurance policies in
effect with respect to Wolstein during the Contract Period while Wolstein is employed by DDR
sufficient to pay to Wolstein, subject to the terms of such policies, a monthly benefit in
the event of disability of at least $46,500 per month through age 65 (or, as to so much of
that monthly amount as has previously been provided through a policy that will pay a monthly
benefit only for a shorter term, through the end of that shorter term). If DDR determines
not to continue any particular disability
insurance policy for Wolstein described in this Section 5.3, DDR’s obligation to
continue to maintain such disability insurance policy will terminate, and through the
Contract Period while Wolstein is employed by DDR, DDR will self-insure the disability
benefit that would have been provided to Wolstein had such disability insurance policy
remained in effect through the date, if

3

 

any, on which Wolstein would otherwise have
qualified for benefits under such disability insurance policy, and DDR will pay the same
disability benefit to Wolstein that would have otherwise been provided under such disability
insurance policy.

5.4 Vacation and Sick Leave. Wolstein will be entitled to such periods of vacation
and sick leave during the Contract Period while Wolstein is employed by DDR as is consistent
with historical practices as established before the Effective Date and as may be determined
by him in his reasonable and good faith discretion (but in any event not less than four
weeks per year or such longer period as may be provided under the DDR vacation and sick
leave policy for executive officers).

6. Expense Reimbursement. DDR will reimburse Wolstein or provide him with an expense
allowance during the Contract Period while Wolstein is employed by DDR for travel, entertainment,
and other expenses reasonably and necessarily incurred by him in connection with DDR’s business.
Wolstein will provide such documentation with respect to expenses to be reimbursed as DDR may
reasonably request.

7. Termination.

7.1 Death or Disability. Wolstein’s employment under this Agreement will terminate
immediately upon his death. The Board may terminate Wolstein’s employment under this
Agreement immediately upon giving notice of termination if Wolstein is Totally Disabled (as
that term is defined in Section 11.1 below) for an aggregate of 120 days in any
consecutive 12 calendar months or for 90 consecutive days.

7.2 For Cause by the Board.

(a) During the Contract Period while Wolstein is employed by DDR, the Board may
terminate Wolstein’s employment under this Agreement for “Cause” at any time upon
the occurrence of any of the following circumstances: 

(i) (A) Wolstein commits a fraud or a felony or an act that is not or a
series of acts that are not taken in good faith and (B) the commission of
such fraud, felony or act or series of acts results in material injury to
the business reputation of DDR.

(ii) Wolstein commits an act or series of repeated acts of dishonesty that
are materially inimical to the best interests of DDR.

(iii) Other than as a result of disability, Wolstein consistently fails to
perform his duties and responsibilities as specified in Sections 1
and 2 above and the failure continues for 15 days after the Board
has advised him in writing of that failure.

(iv) Wolstein has materially breached any provision of this Agreement
(other than Section 1 or 2 above, as to any breach of which
Section 7.2(a)(iii) would apply) and the breach has not been cured
in all substantial respects within 30 days after the Board has advised him
in writing of the nature of the breach.

(b) The termination of Wolstein’s employment under this Agreement shall not be
deemed to be for “Cause” pursuant to this Section 7.2 unless and until there
shall have been delivered to Wolstein a copy of a resolution duly adopted by the
affirmative vote of

4

 

not less than three-fourths of the entire membership of the
Board at a meeting of the Board called and held for such purpose (after reasonable
notice is provided to Wolstein and Wolstein is given an opportunity, together with
counsel, to be heard before the Board) finding that, in the good faith opinion of
the Board, Wolstein is guilty of the conduct described in Sections
7.2(a)(i), (ii), (iii) or (iv) above, and specifying the
particulars thereof in detail.

7.3 For Good Reason by Wolstein. During the Contract Period while Wolstein is
employed by DDR, Wolstein may terminate his employment under this Agreement for “Good
Reason” if any of the following circumstances occur:

(a) The Board materially changes Wolstein’s duties and responsibilities from those
set forth in Sections 1 and 3 above and the change has not been
rescinded to Wolstein’s satisfaction within 15 days after Wolstein has advised DDR
in writing of dissatisfaction with the change. The parties to this Agreement
acknowledge and agree that any decision of the Board pursuant to which Wolstein
ceases to serve as Chief Executive Officer, if in connection therewith the Board
appoints Wolstein to serve as Executive Chairman, will not constitute a material
change in Wolstein’s duties and responsibilities.

(b) DDR changes Wolstein’s place of employment or its principal executive offices
to a location that is more than 50 miles from the geographical center of Cleveland,
Ohio.

(c) DDR materially breaches any of its obligations under this Agreement (other than
its obligations under Sections 1 and 3 above, as to any breach of
which Section 7.3(a) would apply) and the breach is not cured in all
material respects within 30 days after Wolstein has advised the Board in writing of
the breach.

7.4 Without Cause by the Board. During the Contract Period while Wolstein is
employed by DDR, the Board may terminate Wolstein’s employment under this Agreement at any
time without Cause pursuant to written notice provided to Wolstein not less than ninety days
in advance of such termination upon the affirmative vote of a majority of all of the members
of the Board (other than Wolstein). Any termination under this Section 7.4 will be
effective at such time during the Contract Period while Wolstein is employed by DDR as the
Board may specify in that written notice.

7.5 Without Good Reason by Wolstein. During the Contract Period while Wolstein is
employed by DDR, Wolstein may terminate his employment under this Agreement at any time
without Good Reason pursuant to written notice provided to DDR not less than ninety days in
advance of such termination. Any termination under this Section 7.5 will be
effective at such time during the Contract Period while Wolstein is employed by DDR as
Wolstein may specify in that written notice.

7.6 Impact of Service as Executive Chairman. Notwithstanding any provision to the
contrary in any of (a) this Agreement, (b) any long-term incentive compensation plan or
program of the Company, including, without limitation, the Value Sharing Equity Program, (c)
any long-term incentive compensation award agreement between the Company and Wolstein, (d)
any equity awards granted or issued pursuant to any equity or other employee benefit plan of
the Company,
or otherwise, if, at any time during the Contract Period while Wolstein is employed by DDR,
Wolstein ceases to hold the position of Chief Executive Officer after being appointed by the
Board as Executive Chairman, (x) such ceasing to serve as Chief Executive Officer shall not, by

5

 

itself, be deemed to have the impact of a termination of Wolstein’s employment for
purposes of this Agreement or any of its provisions or any continued vesting or exercise of
any and all equity awards previously or thereafter provided to Wolstein by the Company,
including any and all equity awards provided under Sections 4.3 and 4.5 of
this Agreement, and (y) Wolstein’s continued service under this Agreement as Executive
Chairman (through the date on which Wolstein ceases to hold the position of Executive
Chairman) will be deemed for purposes of this Agreement and the agreements, plans and
programs described in this Section 7.6 to constitute continued service by Wolstein
as an employee and executive officer of the Company through such date on which Wolstein
ceases to hold the position of Executive Chairman under this Agreement.

8. Payments upon Termination.

8.1 Upon Termination For Cause or Without Good Reason. If Wolstein’s employment
under this Agreement is terminated by the Board for Cause or by Wolstein without Good Reason
during the Contract Period, DDR will pay and provide to Wolstein his Base Salary through the
Termination Date to the extent not already paid and continuing medical, hospitalization,
vision, and dental insurance at the levels specified in Section 5.2 through the
Termination Date, and, except as may otherwise be required by law, DDR will not pay or
provide to Wolstein any further compensation or other benefits under this Agreement. DDR
will pay any Base Salary referred to in this Section 8.1 to Wolstein within 30 days
of the Termination Date.

8.2 Upon Termination Without Cause or For Good Reason. If Wolstein’s employment
under this Agreement is terminated by the Board without Cause or by Wolstein for Good Reason
during the Contract Period and Section 8.5 does not apply, DDR will pay and provide
to Wolstein the amounts and benefits specified in this Section 8.2, except that DDR
will not be obligated to pay the lump sum amounts specified in Sections 8.2(c) or
8.2(e) unless either (x) DDR is deemed to have waived the obligation to provide a
Release as provided in Section 10.2 or (y) Wolstein has timely executed a Release as
contemplated by Section 10.3. The amounts and benefits specified in this
Section 8.2 are as follows:

(a) A lump sum amount equal to Wolstein’s Base Salary through the Termination Date,
to the extent not already paid. DDR will pay this amount to Wolstein within 30 days
of the Termination Date.

(b) A lump sum amount equal to Wolstein’s Annual Cash Bonus earned for the
immediately preceding calendar year, to the extent not already paid. DDR will pay
this amount to Wolstein on the same date and in the same amount that the Annual Cash
Bonus for such year would have been paid if Wolstein’s employment had not been
terminated, but in any event not later than March 15 of the current year.

(c) A lump sum amount equal to:

(i) if the Termination Date occurs during either of 2009 or 2010, two times
the sum of (A) Wolstein’s Base Salary as of the Termination Date, plus (B)
the Annual Cash Bonus for Wolstein for the year in which the Termination
Date occurs at the “Target” level;

(ii) if the Termination Date occurs during 2011, an amount equal to the sum
of (A) Wolstein’s Base Salary for the period after the Termination Date
through the

6

 

end of the Contract Period, to the extent not already paid, plus
(B) two times the Annual Cash Bonus for Wolstein for 2011 at the “Target”
level; or

(iii) if the Termination Date occurs during 2012, an amount equal to the
sum of (A) Wolstein’s Base Salary for the period after the Termination Date
through the end of the Contract Period, to the extent not already paid, plus
(B) the Annual Cash Bonus for Wolstein for 2012 at the “Target” level.

Except as otherwise provided in Section 15.2, DDR will pay this amount to
Wolstein during the Seventh Month after the Termination Date (as defined in
Section 15.1 below).

(d) Continuing medical, hospitalization, vision, and dental insurance to Wolstein
and his eligible dependents at the levels specified in Section 5.2 through
the earlier of (i) the first anniversary of the Termination Date and (ii) the end of
the Contract Period. To assure compliance with Section 409A of the Internal Revenue
Code, the timing of the provision of these benefits will be subject to Sections
15.1 and 15.3 if and to the extent either of those sections is
applicable according to its terms.

(e) Subject in all cases to the terms and limitations of any applicable equity plan
of the Company, (i) all equity awards granted to Wolstein that vest based solely
upon Wolstein’s continued employment with the Company or the passage of time, which
awards have not otherwise vested as of the Termination Date, and (ii) all equity
awards granted to Wolstein under any long-term incentive compensation plan or
program of the Company, including the Value Sharing Equity Program, which awards
have been earned but have not vested as of the Termination Date, shall not be
forfeited by Wolstein, but instead such equity awards shall remain outstanding and
shall continue to vest according to the original vesting terms established for such
equity awards, even if Wolstein is no longer employed by the Company at any time
after the Termination Date; provided, however, that, to the extent
determined by the Board in its sole discretion, in connection with a termination of
Wolstein’s employment pursuant to this Section 8.2, the Company may pay a
lump sum amount equal to the product of (1) the aggregate number of Shares
comprising or underlying such equity awards, as applicable, multiplied by (2) the
Fair Market Value as of the Termination Date, and such equity awards will thereby be
forfeited. Except as otherwise provided in Section 15.2, DDR will pay this
amount to Wolstein during the Seventh Month after the Termination Date (as defined
in Section 15.1 below).

8.3 Upon Termination by Reason of Death. If Wolstein’s employment under this
Agreement is terminated by reason of his death during the Contract Period, DDR will pay, or
cause to be paid, and provide, or cause to be provided, to Wolstein’s personal
representative and his eligible dependents, as appropriate, the amounts and benefits
specified in this Section 8.3. The amounts and benefits specified in this
Section 8.3 are as follows:

(a) A lump sum amount equal to Wolstein’s Base Salary through the Termination Date,
to the extent not already paid. DDR will pay this amount to Wolstein’s personal
representative within 30 days of the Termination Date.

(b) A lump sum amount equal to Wolstein’s Annual Cash Bonus earned for the
immediately preceding calendar year, to the extent not already paid. DDR will pay
this amount to Wolstein’s personal representative on the same date and in the same
amount

7

 

that the Annual Cash Bonus for such year would have been paid if Wolstein’s
employment had not been terminated, but in any event not later than March 15 of the
current year.

(c) Continuing medical, hospitalization, vision, and dental insurance to Wolstein’s
eligible dependents at the levels specified in Section 5.2 through the
earlier of (i) the first anniversary of the Termination Date and (ii) the end of the
Contract Period. To assure compliance with Section 409A, the timing of the
provision of these benefits will be subject to Sections 15.1 and
15.3 if and to the extent either of those sections is applicable according
to its terms.

8.4 Upon Termination by Reason of Disability. If Wolstein’s employment under this
Agreement is terminated by the Board pursuant to Section 7.1 during the Contract
Period following Wolstein’s disability, DDR will pay and provide to Wolstein and his
eligible dependents, as appropriate, the amounts and benefits specified in this Section
8.4. The amounts and benefits specified in this Section 8.4 are as follows:

(a) A lump sum amount equal to Wolstein’s Base Salary through the Termination Date,
to the extent not already paid. DDR will pay this amount to Wolstein within 30 days
of the Termination Date.

(b) A lump sum amount equal to Wolstein’s Annual Cash Bonus earned for the
immediately preceding calendar year, to the extent not already paid. DDR will pay
this amount to Wolstein on the same date and in the same amount that the Annual Cash
Bonus for such year would have been paid if Wolstein’s employment had not been
terminated, but in any event not later than March 15 of the current year.

(c) Continuing medical, hospitalization, vision, and dental insurance to Wolstein
and his eligible dependents at the levels specified in Section 5.2 through
the earlier of (i) the first anniversary of the Termination Date and (ii) the end of
the Contract Period. To assure compliance with Section 409A, the timing of the
provision of these benefits will be subject to Sections 15.1 and
15.3 if and to the extent either of those sections is applicable according
to its terms.

8.5 Upon Termination In Connection With a Change in Control. Upon the occurrence
of a Triggering Event during the Contract Period while Wolstein is employed by DDR, DDR will
pay and provide to Wolstein the amounts and benefits specified in this Section 8.5,
and DDR will be deemed to have waived its right to provide a Release as provided in
Section 10.2, and the provision of a Release will not be a condition to Wolstein
receiving any payment or benefit from DDR under this Section 8.5. The amounts and
benefits specified in this Section 8.5 are as follows:

(a) A lump sum amount equal to Wolstein’s Base Salary through the Termination Date,
to the extent not already paid. DDR will pay this amount to Wolstein within 30 days
of the Termination Date.

(b) A lump sum amount equal to Wolstein’s Annual Cash Bonus earned for the
immediately preceding calendar year, if any, to the extent not already paid. DDR
will pay this amount, if any, to Wolstein on the same date and in the same amount
that the

8

 

Annual Cash Bonus for such year would have been paid if Wolstein’s
employment had not been terminated, but in any event not later than March 15 of the
current year.

(c) A lump sum amount equal to:

(i) if the Termination Date occurs during either of 2009 or 2010, two times
the sum of (A) Wolstein’s Base Salary as of the Termination Date, plus (B)
the Annual Cash Bonus for Wolstein for the year in which the Termination
Date occurs at the “Target” level;

(ii) if the Termination Date occurs during 2011, an amount equal to the sum
of (A) Wolstein’s Base Salary for the period after the Termination Date
through the end of the Contract Period, to the extent not already paid, plus
(B) two times the Annual Cash Bonus for Wolstein for 2011 at the “Target”
level; or

(iii) if the Termination Date occurs during 2012, an amount equal to the
sum of (A) Wolstein’s Base Salary for the period after the Termination Date
through the end of the Contract Period, to the extent not already paid, plus
(B) the Annual Cash Bonus for Wolstein for 2012 at the “Target” level.

Except as otherwise provided in Section 15.2, DDR will pay this amount to
Wolstein during the Seventh Month after the Termination Date (as defined in
Section 15.1 below).

(d) Continuing medical, hospitalization, vision, and dental insurance to Wolstein
and his eligible dependents at the levels specified in Section 5.2 through
the earlier of (i) the first anniversary of the Termination Date and (ii) the end of
the Contract Period. To assure compliance with Section 409A of the Internal Revenue
Code, the timing of the provision of these benefits will be subject to Sections
15.1 and 15.3 if and to the extent either of those sections is
applicable according to its terms.

(e) Subject in all cases to the terms and limitations of any applicable equity plan
of the Company, (i) all equity awards granted to Wolstein that vest based solely
upon Wolstein’s continued employment with the Company or the passage of time, which
awards have not otherwise vested as of the Termination Date, and (ii) all equity
awards granted to Wolstein under any long-term incentive compensation plan or
program of the Company, including the Value Sharing Equity Program, which awards
have been earned but have not vested as of the Termination Date, shall not be
forfeited by Wolstein, but instead such equity awards shall remain outstanding and
shall continue to vest according to the original vesting terms established for such
equity awards, even if Wolstein is no longer employed by the Company at any time
after the Termination Date; provided, however, that, to the extent
determined by the Board in its sole discretion, in connection with a termination of
Wolstein’s employment pursuant to this Section 8.5, the Company may pay a
lump sum amount equal to the product of (1) the aggregate number of Shares
comprising or underlying such equity awards, as applicable, multiplied by (2) the
Fair Market Value as of the Termination Date, and such equity awards will thereby be
forfeited. Except as otherwise provided in Section 15.2, DDR will pay this
amount to
Wolstein during the Seventh Month after the Termination Date (as defined in
Section 15.1 below).

9

 

9. Continuing Office Support Following Termination of Employment. If Wolstein’s
employment with DDR is terminated during the Contract Period other than by the Board for Cause, by
Wolstein without Good Reason, or by reason of Wolstein’s death, DDR will provide to Wolstein, from
the Termination Date through the third anniversary of the Termination Date (or, if earlier, through
the first to occur of (a) the end of the Contract Period, (b) Wolstein’s death or (c) the date, if
ever, on which he begins full time employment with another employer) (the applicable date, the “End
Date”), office space at a location (other than the executive offices of DDR) suitable to his status
as the former Chief Executive Officer of DDR, a full-time secretary, and other customary office
support functions (collectively, the “Continuing Office Support”). To assure compliance with
Section 409A, the entire cost of the Continuing Office Support from the Termination Date through
the Six Month Date (as defined in Section 15.1), or until the End Date, if earlier, will be
for the account of Wolstein and Wolstein will directly pay (or provide funds to DDR to pay) all
elements of that cost on a current basis during that period. The costs so paid by Wolstein
(whether directly or by providing funds to DDR) will be accumulated (together with interest at the
applicable federal rate under Section 7872(f)(2)(A) of the Code in effect on the Termination Date)
through the Six Month Date and DDR will reimburse Wolstein for the accumulated costs, with
interest, during Seventh Month after the Termination Date. DDR will provide any Continuing Office
Support after the Six Month Date until the End Date at no cost to Wolstein.

10. Release. This Section 10 will apply only upon termination of Wolstein’s
employment during the Contract Period (a) by the Board without Cause or (b) by Wolstein for Good
Reason.

10.1 Presentation of Release by DDR. If this Section 10 applies, DDR may
present to Wolstein (or in the case of Wolstein’s legal incapacity, to Wolstein’s personal
representative), not later than 21 days after the Termination Date, a form of release (a
“Release”) of all current and future claims, known or unknown, arising on or before the date
on which the Release is to be executed, that Wolstein or his assigns have or may have
against DDR or any Subsidiary, and the directors, officers, and affiliates of any of them,
in such form as may reasonably be presented by DDR together with a covering message in which
DDR advises Wolstein (or his personal representative) that the Release is being presented in
accordance with this Section 10.1 and that a failure by Wolstein (or his personal
representative) to execute and return the Release as contemplated by Section 10.3
would relieve DDR of the obligation to make payments otherwise due to Wolstein (or to his
personal representative) under one or more portions of Section 8.2.

10.2 Effect of Failure by DDR to Present Release. If DDR fails to present a
Release and covering message to Wolstein (or his personal representative) as contemplated by
Section 10.1, DDR will be deemed to have waived the requirement that Wolstein (or
his personal representative) execute a Release as a condition to receiving payments under
any portion of Section 8.2.

10.3 Execution of Release by Wolstein or His Personal Representative. If DDR does
present a Release and covering message to Wolstein (or his personal representative) as
contemplated by Section 10.1, Wolstein (or his personal representative) will have
until 50 days after the Termination Date (i.e., at least 29 days after presentation of the
Release to Wolstein (or his personal representative)) within which to deliver an executed
copy of the Release to DDR and thereby satisfy the condition to receiving payments under any
portion of Section 8.2, provided that Wolstein (or his personal representative) does
not revoke the execution of the Release during any applicable revocation period.

10.4 Effect of Failure to Execute Release or of Revocation of Release. If Wolstein
(or his personal representative) fails to deliver an executed copy of the Release to DDR
within 50 days

10

 

after the Termination Date or revokes the execution of the Release during any
applicable revocation period, Wolstein (or his personal representative) will be deemed to
have waived the right to receive all payments under Sections 8.2 that were
conditioned on the Release.

11. Disability Definitions; Physical Examination.

11.1 Definitions. For all purposes of this Agreement:

(a) Wolstein’s “Own Occupation” means the regular occupation in which he is engaged
under this Agreement at the time he becomes disabled.

(b) “Total Disability” means that, because of sickness or injury, Wolstein is not
able to perform the material and substantial duties of his Own Occupation.

(c) “Totally Disabled” means that Wolstein suffers from Total Disability (and
Wolstein will be deemed to continue to be Totally Disabled so long as he is not able
to work in his Own Occupation even if he works in some other capacity).

11.2 Physical Examination. If either the Board or Wolstein, at any time or from
time to time after receipt of notice of Wolstein’s Total Disability from the other, desires
to contend that Wolstein is not Totally Disabled, Wolstein will promptly submit to a
physical examination by the chief of medicine of any major accredited hospital in the
Cleveland, Ohio area and, unless that physician issues his written statement to the effect
that, in his opinion, based on his diagnosis, Wolstein is capable of resuming his Own
Occupation and devoting his full time and energy to discharging the duties of his Own
Occupation, Wolstein will be deemed to be and to continue to be Totally Disabled for all
purposes of this Agreement.

12. No Set-Off; No Obligation to Seek Other Employment or to Otherwise Mitigate Damages; No
Effect Upon Other Plans. DDR’s obligation to make the payments provided for in this Agreement
and otherwise to perform its obligations under this Agreement will not be affected by any set-off,
counterclaim, recoupment, defense, or other claim whatsoever that DDR or any Subsidiary may have
against Wolstein, except that the prohibition on set-off, counterclaim, recoupment, defense, or
other claim contained in this sentence will not apply (a) if Wolstein’s employment is terminated by
the Board for Cause or (b) to the potential set-off with respect to reimbursement of the DDR-Paid
Premiums specified in Section 20.1. Wolstein will not be required to mitigate damages or
the amount of any payment provided for under this Agreement by seeking other employment or
otherwise. The amount of any payment provided for under this Agreement will not be reduced by any
compensation or benefits earned by Wolstein as the result of employment by another employer or
otherwise after the Termination Date. Neither the provisions of this Agreement nor the making of
any payment provided for under this Agreement, nor the termination of DDR’s obligations under this
Agreement, will reduce any amounts otherwise payable, or in any way diminish Wolstein’s rights,
under any incentive compensation plan, stock option or stock appreciation rights plan, restricted
stock plan or agreement, deferred compensation, retirement, or supplemental retirement plan, stock
purchase and savings plan, disability or insurance plan, or other similar contract, plan, or
arrangement of DDR or any Subsidiary, all of which will be governed by their respective terms.

13. Payments Are in Lieu of Severance Payments. If Wolstein becomes entitled to receive
payments under this Agreement as a result of termination of his employment, those payments will be
in lieu of any
and all other claims or rights that Wolstein may have against DDR for severance, separation, and/or
salary continuation pay upon that termination of his employment.

11

 

14. Covenants and Confidential Information. Wolstein acknowledges DDR’s reliance on and
expectation of Wolstein’s continued commitment to performance of his duties and responsibilities
during the Contract Period while Wolstein is employed by DDR and he assumes the obligations set out
in this Section 14 in light of that reliance and expectation on the part of DDR.

14.1 Confidentiality. Throughout the Contract Period and for a period of two years
thereafter, Wolstein will not disclose, divulge, discuss, copy, or otherwise use or suffer
to be used in any manner, in competition with, or contrary to the interests of, DDR, any
confidential information relating to DDR’s operations, properties, or otherwise to its
particular business or other trade secrets of DDR, it being acknowledged by Wolstein that
all such information regarding the business of DDR compiled or obtained by, or furnished to,
him during his employment by or association with DDR is confidential information and DDR’s
exclusive property. The restrictions in this Section 14.1 will not apply to any
information to the extent that it (a) is clearly obtainable in the public domain, (b)
becomes obtainable in the public domain, except by reason of the breach by Wolstein of his
obligations under this Section 14.1, (c) was not acquired by Wolstein in connection
with his employment or affiliation with DDR, (d) was not acquired by Wolstein from DDR or
its representatives, or (e) is required to be disclosed by rule of law or by order of a
court or governmental body or agency.

14.2 Nonsolicitation. During the Contract Period, Wolstein will not directly or
indirectly solicit or induce or attempt to solicit or induce any employee of DDR and/or of
any Subsidiary or affiliate to terminate his or her employment with DDR and/or any
Subsidiary.

14.3 Remedies. Wolstein acknowledges that the remedy at law for any breach by him
of this Section 14 may be inadequate and that the damages following from any such
breach may not be readily susceptible to being measured in monetary terms. Accordingly,
Wolstein agrees that, upon adequate proof of Wolstein’s violation of any legally enforceable
provision of this Section 14, DDR will be entitled to immediate injunctive relief
and may obtain a temporary order restraining any threatened or further breach. Nothing in
this Section 14 will be deemed to limit DDR’s remedies at law or in equity for any
breach by Wolstein of any of the provisions of this Section 14 that may be pursued
or availed of by DDR.

14.4 Acknowledgement. Wolstein has carefully considered the nature and extent of
the restrictions upon him and the rights and remedies conferred upon DDR under this
Section 14, and hereby acknowledges and agrees that the same are reasonable in time
and territory, are designed to eliminate competition that otherwise would be unfair to DDR,
do not stifle the inherent skill and experience of Wolstein, would not operate as a bar to
Wolstein’s sole means of support, are fully required to protect the legitimate interests of
DDR, and do not confer a benefit upon DDR disproportionate to the detriment to Wolstein.

15. Compliance with Section 409A.

15.1 Six Month Delay on Certain Payments, Benefits, and Reimbursements. If
Wolstein is a “specified employee” for purposes of Section 409A, as determined under DDR’s
policy for determining specified employees on the Termination Date, each payment, benefit,
or reimbursement paid or provided under this Agreement that constitutes a “deferral of
compensation” within the meaning of Section 409A, that is to be paid or provided as a result
of a
“separation from service” within the meaning of Section 409A, and that would otherwise be
paid or provided at any time (a “Scheduled Time”) that is on or before the date (the “Six
Month Date”) that is exactly six months after the Termination Date (other than payments,
benefits, or

12

 

reimbursements that are treated as separation pay under Section
1.409A-1(b)(9)(v) of the Treasury Regulations) will not be paid or provided at the Scheduled
Time but will be accumulated (together with interest at the applicable federal rate under
Section 7872(f)(2)(A) of the Code in effect on the Termination Date) through the Six Month
Date and paid or provided during the period of 30 consecutive days beginning on the first
business day after the Six Month Date (that period of 30 consecutive days, the “Seventh
Month after the Termination Date”), except that if Wolstein dies before the Six Month Date,
the payments, benefits, or reimbursements will be accumulated only through the date of his
death and thereafter paid or provided not later than 30 days after the date of death.

15.2 Earlier Payment if Not a Specified Employee. If Wolstein is not a “specified
employee” for purposes of Section 409A, as determined under DDR’s policy for determining
specified employees on the Termination Date, any lump sum payment to be made by DDR to
Wolstein pursuant to any one or more of Sections 8.2(c), 8.2(e),
8.5(c) and 8.5(e) will be made by DDR to Wolstein during the 30-day period
that begins exactly 60 days after the Termination Date rather than during the Seventh Month
after the Termination Date.

15.3 Additional Limitations on Reimbursements and In-Kind Benefits. The
reimbursement of expenses or in-kind benefits provided under Section 8 or under any
other section of this Agreement that are taxable benefits (and that are not disability pay
or death benefit plans within the meaning of Section 409A of the Code) are intended to
comply, to the maximum extent possible, with the exception to Section 409A set forth in
Section 1.409A-1(b)(9)(v) of the Treasury Regulations. To the extent that any reimbursement
of expenses or in-kind benefits provided under Section 8 or under any other section
of this Agreement either do not qualify for that exception, or are provided beyond the
applicable time periods set forth in Section 1.409A-1(b)(9)(v) of the Treasury Regulations,
then they will be subject to the following additional rules: (i) any reimbursement of
eligible expenses will be paid within 30 days following Wolstein’s written request for
reimbursement; provided that Wolstein provides written notice no later than 60 days before
the last day of the calendar year following the calendar year in which the expense was
incurred so that DDR can make the reimbursement within the time periods required by Section
409A; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided,
during any calendar year will not affect the amount of expenses eligible for reimbursement,
or in-kind benefits to be provided, during any other calendar year; and (iii) the right to
reimbursement or in-kind benefits will not be subject to liquidation or exchange for any
other benefit.

15.4 Compliance Generally. Each payment or reimbursement and the provision of each
benefit under this Agreement shall be considered a separate payment and not one of a series
of payments for purposes of Section 409A. The Board and Wolstein intend that the payments
and benefits provided under this Agreement will either be exempt from the application of, or
comply with, the requirements of Section 409A. This Agreement is to be construed,
administered, and governed in a manner that effects that intent and DDR will not take any
action that is inconsistent with that intent. Without limiting the foregoing, the payments
and benefits provided under this Agreement may not be deferred, accelerated, extended, paid
out, or modified in a manner that would result in the imposition of an additional tax under
Section 409A upon Wolstein.

15.5 Termination of Employment to Constitute a Separation from Service. The
parties intend that the phrase “termination of employment” and words and phrases of similar
import mean a “separation from service” with DDR within the meaning of Section 409A.
Wolstein and DDR will take all steps necessary (including taking into account this
Section 15.5 when considering

13

 

any further agreement regarding provision of services
by Wolstein to DDR after the Termination Date) to ensure that (a) any termination of
employment under this Agreement constitutes a “separation from service” within the meaning
of Section 409A, and (b) the Termination Date is the date on which Wolstein experiences a
“separation from service” within the meaning of Section 409A.

16. Indemnification. DDR will indemnify Wolstein, to the full extent permitted or
authorized by the Ohio General Corporation Law as it may from time to time be amended, if Wolstein
is made or threatened to be made a party to any threatened, pending, or completed action, suit, or
proceeding, whether civil, criminal, administrative, or investigative, by reason of the fact that
Wolstein is or was a director, officer, or employee of DDR and/or of any Subsidiary, or is or was
serving at the request of DDR and/or of any Subsidiary as a director, trustee, officer, or employee
of a corporation, partnership, joint venture, trust, or other enterprise. The indemnification
provided by this Section 16 will not be deemed exclusive of any other rights to which
Wolstein may be entitled under the articles of incorporation or the regulations of DDR and/or of
any Subsidiary, or any agreement, vote of shareholders or disinterested directors, or otherwise,
both as to action in Wolstein’s official capacity and as to action in another capacity while
holding such office, and will continue as to Wolstein after Wolstein has ceased to be a director,
trustee, officer, or employee and will inure to the benefit of his heirs, executors, and
administrators. In particular, Wolstein will continue to be entitled to the full benefit of the
indemnification agreement dated April 3, 2009 between Wolstein and DDR (the “Indemnification
Agreement”) for so long as that Indemnification Agreement remains in effect according to its terms.
In the event of any conflict or inconsistency between the provisions of this Section 16
and the provisions of the Indemnification Agreement, the provisions of the Indemnification
Agreement shall control.

17. Certain Expenses. This Section 17 will apply only to expenses that (a) are
otherwise described in one or more of its subsections and (b) are incurred at any time from the
Effective Date through the fifth anniversary of Wolstein’s death.

17.1 Reimbursement of Certain Expenses. DDR will pay, as incurred, all expenses,
including the reasonable fees of counsel engaged by Wolstein, of Wolstein in (a) prosecuting
any action to compel DDR to comply with the terms of this Agreement upon receipt from
Wolstein of an undertaking to repay DDR for such expenses if it is ultimately determined by
a court of competent jurisdiction that Wolstein had no reasonable grounds for bringing such
action or (b) defending any action brought by a party other than Wolstein or his personal
representative to have this Agreement declared invalid or unenforceable.

17.2 Advancement of Certain Expenses. Expenses (including the reasonable fees of
counsel engaged by Wolstein) incurred by Wolstein in defending any action, suit, or
proceeding commenced or threatened against Wolstein for any action or failure to act as an
employee, officer, or director of DDR and/or of any Subsidiary will be paid by DDR, as they
are incurred, in advance of final disposition of the action, suit, or proceeding upon
receipt of an undertaking by or on behalf of Wolstein in which he agrees to reasonably
cooperate with DDR and/or the Subsidiary, as the case may be, concerning the action, suit,
or proceeding, and (a) if the action, suit, or proceeding is commenced or threatened against
Wolstein for any action or failure to act as a director, to repay the amount if it is proved
by clear and convincing evidence in a court of competent jurisdiction that his action or
failure to act involved an act or omission undertaken with
deliberate intent to cause injury to DDR or a Subsidiary or with reckless disregard for the
best interests of DDR or a Subsidiary, or (b) if the action, suit, or proceeding is
commenced or threatened against Wolstein for any action or failure to act as an officer or
employee, to repay the amount if it is ultimately determined that he is not entitled to be
indemnified. The obligation of

14

 

DDR to advance expenses provided for in this Section
17.2 will not be deemed exclusive of any other rights to which Wolstein may be entitled
under the articles of incorporation or the regulations of DDR or of any Subsidiary, or any
agreement, vote of shareholders or disinterested directors, or otherwise.

18. Survival of Obligations. Except as is otherwise expressly provided in this Agreement,
the respective obligations of DDR and Wolstein under this Agreement will survive any termination of
Wolstein’s employment under this Agreement.

19. Notices. Notices and all other communications provided for in this Agreement must be
in writing and will be deemed to have been duly given when delivered in person (to the President of
DDR in the case of notices to DDR and to Wolstein in the case of notices to Wolstein) or mailed by
United States registered mail, return receipt requested, postage prepaid, and addressed, if to DDR,
to its principal place of business, attention: President, and, if to Wolstein, to his home address
last shown on the records of DDR, or to such other address or addresses as either party may furnish
to the other in accordance with this Section 19.

20. Entire Agreement, Certain Prior Arrangements. Except as otherwise set forth below in
this Section 20, this Agreement supersedes in their entirety all prior employment and
change in control agreements between the parties and all understandings between them with respect
to the subject matter of this Agreement, including, without limitation, the Employment Agreement,
dated as of October 15, 2008, by and between DDR and Wolstein and the Change in Control Agreement,
dated as of October 15, 2008, by and between DDR and Wolstein. As provided in Section 16,
Wolstein will continue to be entitled to the full benefit of the Indemnification Agreement for so
long as it remains in effect according to its terms.

20.1 Residual Split-Dollar Obligations. Since 2003, Wolstein has personally
maintained two life insurance policies (the “Policies”) that were initially issued in
connection with a split-dollar agreement between Wolstein and DDR (the “Split-Dollar
Agreement”). DDR paid a total of $1,691,119 in premiums (the “DDR-Paid Premiums”) on the
Policies before July 30, 2002 and, under the terms of the Split-Dollar Agreement, is
entitled to be reimbursed for the DDR-Paid Premiums in full (without interest), either from
the proceeds of the Policies upon Wolstein’s death or upon the surrender of the Policies
during Wolstein’s life. If Wolstein takes any action, or fails to take any action, and the
taking of or the failure to take that action adversely affects DDR’s right to reimbursement
of the DDR-Paid Premiums, DDR will be entitled to set off its right to reimbursement of the
DDR-Paid Premiums against any payments otherwise required to be made by DDR to Wolstein
and/or his assigns under this Agreement. Wolstein hereby authorizes DDR to make inquiries
of the issuers of the Policies from time to time to determine Wolstein’s compliance with the
obligation set forth in the immediately preceding sentence. Wolstein will authorize the
issuers of the Policies to provide information to DDR that is responsive to those inquiries.

21. Mandatory Arbitration Before a Change in Control and To Determine Cause. Section
21.1 will apply if and only if either party notifies the other, in writing, that it is
demanding resolution of a then-current controversy or claim by arbitration and the notice is
provided by the notifying party to the other party before any Change in Control has occurred.
Nothing in this Section 21 will limit the right of DDR to
seek and obtain injunctive relief in a court of equity for any breach or threatened breach by
Wolstein of any of his covenants contained in Section 14 above.

21.1 Scope of Arbitration. If this Section 21.1 applies, any controversy
or claim arising out of or relating to this Agreement or any breach of this Agreement will
be settled by binding arbitration

15

 

to be held before three arbitrators and conducted in
accordance with the Employment Arbitration Rules and Mediation Procedures of the American
Arbitration Association in the City of Cleveland, Ohio. The decision of the arbitrators
will be final and binding on both parties and judgment on any award rendered by the
arbitrators may be entered in any court of competent jurisdiction. Costs and expenses of
any such arbitration will be borne by the parties as may be directed by the arbitrators
taking into account the extent to which the positions taken by each of the parties are
reasonable. The arbitrators will have the power to issue mandatory orders and restraining
orders in connection with any such arbitration.

21.2 Other Disputes. If Section 21.1 does not apply to any claim or
controversy between the parties, the parties may nevertheless, but need not, mutually agree
to submit any controversy or claim to arbitration as though Section 21.1 did apply.
Failing any such mutual agreement, either party may bring proceedings against the other with
respect to any claim or controversy in any court of competent jurisdiction that satisfies
the venue requirements set forth in Section 22.8. Nothing in this Section
21.2 imposes upon either party any obligation to discuss possible arbitration of any
claim or controversy to which Section 21.1 does not apply before bringing any court
proceedings with respect to that claim or controversy.

22. Miscellaneous.

22.1 No Conflict. Wolstein represents and warrants that he is not a party to any
agreement, contract, or understanding, whether employment or otherwise, that would restrict
or prohibit him from undertaking or performing employment in accordance with the terms and
conditions of this Agreement.

22.2 Assistance. During the term of this Agreement and thereafter, Wolstein will
provide reasonable assistance to DDR in litigation and regulatory matters that relate to
events that occurred during Wolstein’s period of employment with DDR and its predecessors,
and will provide reasonable assistance to DDR with matters relating to its corporate history
from the period of Wolstein’s employment with it or its predecessors. Wolstein will be
entitled to reimbursement of reasonable out-of-pocket travel or related costs and expenses
relating to any such cooperation or assistance that occurs following the Termination Date.

22.3 Severability. The provisions of this Agreement are severable and if any one
or more provision is determined to be illegal or otherwise unenforceable, in whole or in
part, the remaining provisions and any partially unenforceable provision to the extent
enforceable in any jurisdiction nevertheless will be binding and enforceable.

22.4 Benefit of Agreement. The rights and obligations of DDR under this Agreement
will inure to the benefit of, and will be binding on, DDR and its successors and assigns,
and the rights and obligations (other than obligations to perform services) of Wolstein
under this Agreement will inure to the benefit of, and will be binding upon, Wolstein and
his heirs, personal representatives, and assigns.

22.5 No Waiver. The failure of either party to enforce any provision or provisions
of this Agreement will not in any way be construed as a waiver of any such provision or
provisions as to any future violations thereof, nor prevent that party from later enforcing
each and every other provision of this Agreement. The rights granted the parties in this
Agreement are cumulative and the waiver of any single remedy will not constitute a waiver of
that party’s right to assert all other legal remedies available to it under the
circumstances.

16

 

22.6 Modification. This Agreement may not be modified or terminated orally. No
modification or termination will be valid unless in writing and signed by the party against
which the modification or termination is sought to be enforced.

22.7 Merger or Transfer of Assets of DDR. During the Contract Period while
Wolstein is employed by DDR, DDR will not consolidate with or merge into any other
corporation, or transfer all or substantially all of its assets to another corporation,
unless such other corporation assumes this Agreement in a signed writing and delivers a copy
thereof to Wolstein, which signed writing may consist of the merger or sale agreement, or
similar document. Upon any such assumption, the successor corporation will become obligated
to perform the obligations of DDR under this Agreement, and the terms “DDR” and the
“Company,” as used in this Agreement, will be deemed to refer to that successor corporation,
and the term “the Board” as used in this Agreement will be deemed to refer to the board of
directors of that successor corporation.

22.8 Governing Law and Venue. The provisions of this Agreement will be governed by
and construed in accordance with the laws of the State of Ohio applicable to contracts made
in and to be performed exclusively within that State, notwithstanding any conflict of law
provision to the contrary. Subject to the mandatory arbitration provisions of Section
21, the parties consent to venue and personal jurisdiction over them in the courts of
the State of Ohio and federal courts sitting in Cleveland, Ohio, for purposes of construing
and enforcing this Agreement.

23. Definitions.

23.1 Award Shares. The term “Award Shares” has the meaning set forth for such term
in the Value Sharing Equity Program.

23.2 Cash Payments. The term “Cash Payments” has the meaning set forth for such
term in the Value Sharing Equity Program.

23.3 Cause. The term “Cause” has the meaning set forth in Section 7.2.

23.4 Change in Control. The term “Change in Control” means the occurrence, during
the Contract Period while Wolstein is employed by DDR, of any of the following:

(a) consummation of a consolidation or merger in which DDR is not the surviving
corporation, the sale of substantially all of the assets of DDR, or the liquidation
or dissolution of DDR;

(b) any person or other entity (other than DDR or a Subsidiary or any DDR employee
benefit plan (including any trustee of any such plan acting in its capacity as
trustee)) purchases any Shares (or securities convertible into Shares) pursuant to a
tender or exchange offer without the prior consent of the Board, or becomes the
beneficial owner
of securities of DDR representing 30% or more of the voting power of DDR’s
outstanding securities without the prior consent of the Board; or

(c) during any two-year period, individuals who at the beginning of such period
constitute the entire Board cease to constitute a majority of the Board;
provided, that any person becoming a director of DDR during such two-year
period whose election, or nomination for election by DDR’s shareholders, was
approved by a vote of at least two-thirds of the directors who at the beginning of
such period constituted the entire Board

17

 

(either by a specific vote or by approval
of DDR’s proxy statement in which such person is named as a nominee of DDR for
director), but excluding for this purpose any person whose initial assumption of
office as a director of DDR occurs as a result of either an actual or threatened
election contest with respect to the election or removal of directors of DDR or
other actual or threatened solicitation of proxies or consents by or on behalf of an
individual, corporation, partnership, group, associate or other entity or person
other than the Board, shall be, for purposes of this Section 23.4(c),
considered as though such person was a member of the Board at the beginning of such
period.

23.5 Committee. The term “Committee” means the Executive Compensation Committee of
the Board of the Company or any other committee or subcommittee authorized by the Board to
discharge the Board’s responsibilities relating to the compensation of the Company’s
executives and directors.

23.6 Fair Market Value. The term “Fair Market Value” means, as of a given date (in
order of applicability): (a) the closing price of a Share on the principal exchange on
which the Shares are then trading, if any, on such date, or if Shares were not traded on
such date, then on the next preceding trading day during which a sale occurred; (b) if
Shares are not then traded on an exchange, the mean between the closing representative bid
and asked prices for Shares on such date as reported by a national quotation system; (c) if
Shares are not traded on an exchange and not quoted on a national quotation system, the mean
between the closing bid and asked prices for Shares, on such date, as determined in good
faith by the Committee; or (d) if Shares are not publicly traded, the fair market value
established by the Committee acting in good faith and in accordance with the applicable
requirements of Section 409A and the regulations promulgated thereunder.

23.7 Good Reason. The term “Good Reason” has the meaning set forth in Section
7.3.

23.8 Internal Revenue Code. The term “Internal Revenue Code” means the Internal
Revenue Code of 1986, as amended.

23.9 Notice of Grant. The term “Notice of Grant” has the meaning set forth for
such term in the Value Sharing Equity Program.

23.10 Section. References in this Agreement to one or more “Sections” are to
sections of this Agreement, except for references to Section 409A, which are references to
that section of the Internal Revenue Code.

23.11 Section 409A. The term “Section 409A” means Section 409A of the Internal
Revenue Code. References in this Agreement to Section 409A are intended to include any
proposed, temporary, or final regulations, or any other guidance, promulgated with respect
to Section 409A by the U.S. Department of Treasury or the Internal Revenue Service.

23.12 Shares. The term “Shares” means the Common Shares, par value $0.10 per
share, of DDR.

23.13 Subsidiary. The term “Subsidiary” means any corporation, partnership, or
other entity a majority of the voting control of which is directly or indirectly owned or
controlled by DDR.

18

 

23.14 Termination Date. The term “Termination Date” means the date on which
Wolstein’s employment with DDR and its Subsidiaries terminates.

23.15 Triggering Event. A “Triggering Event” for the purpose of this Agreement
will be deemed to have occurred if, during the Contract Period while Wolstein is employed by
DDR:

(a) Within three years after the date on which a Change in Control occurs, the
Board terminates the employment of Wolstein, other than in the case of a termination
for Cause, a termination by the Board pursuant to Section 7.1 following
Wolstein’s disability, or a termination based on death;

(b) Within three years after the date on which a Change in Control occurs, the
Board reduces Wolstein’s title, responsibilities, power, or authority in comparison
with his title, responsibilities, power, or authority at the time of the Change in
Control and Wolstein thereafter terminates his employment with DDR within such
three-year period;

(c) Within three years after the date on which a Change in Control occurs, the
Board assigns Wolstein duties which are inconsistent with the duties assigned to
Wolstein on the date on which the Change in Control occurred and which duties the
Board persists in assigning to Wolstein despite the prior written objection of
Wolstein and Wolstein thereafter terminates his employment with DDR within such
three-year period;

(d) Within three years after the date on which a Change in Control occurs, the
Board (i) reduces Wolstein’s base compensation, his incentive opportunity bonus
percentages of salary, his group health, life, disability, or other insurance
programs (including any such benefits provided to Wolstein’s family), his pension,
retirement, or profit-sharing benefits or any benefits provided by any of DDR’s
equity-based award plans, or any substitute therefor, (ii) establishes criteria and
factors to be achieved for the payment of bonus compensation that are substantially
different than the criteria and factors established for other similar executive
officers of DDR, (iii) fails to pay Wolstein any bonus compensation to which
Wolstein is entitled through the achievement of the criteria and factors established
for the payment of such bonus, or (iv) excludes Wolstein from any plan, program, or
arrangement in which the other executive officers of DDR are included and Wolstein
thereafter terminates his employment with DDR within such three-year period; or

(e) Within three years after the date on which a Change in Control occurs, the
Board requires Wolstein to be based at or generally work from any location more than
fifty miles from the geographical center of Cleveland, Ohio and Wolstein thereafter
terminates his employment with DDR within such three-year period.

23.16 Undelivered Award Shares. The term “Undelivered Award Shares” has the meaning
set forth for such term in the Value Sharing Equity Program.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

19

 

IN WITNESS WHEREOF, DDR and Wolstein have executed this Agreement, DDR by its duly authorized
President, as of the date first written above.

	 	 	 	 	 
	 	DEVELOPERS DIVERSIFIED REALTY 

CORPORATION

 	 
	 	By:  	/s/ Daniel B. Hurwitz
 	 
	 	 	Daniel B. Hurwitz, President 	 
	 	 	 	 
	 	 	 
	 	      /s/ Scott A. Wolstein
 	 
	 	SCOTT A. WOLSTEIN 	 
	 	 	 

20

 

	 	 	 	 	 

EXHIBIT A

ANNUAL CASH BONUS OPPORTUNITY

AS A PERCENTAGE OF YEAR-END BASE SALARY

	 	 	 	 	 
	Threshold	 	Target	 	Maximum
	 	 	 	 	 
	250%
	 	375%
	 	500%

PERFORMANCE METRICS AND RELATIVE WEIGHTING

FOR 2009 ANNUAL CASH BONUS OPPORTUNITY

	 	 	 	 	 
	Performance Metric	 	Relative Weighting
	 
	 	 	 	 
	Annual Budget Performance
	 	 	1/3	 
	 
	 	 	 	 
	Relative Total Shareholder Return
	 	 	1/3	 
	 
	 	 	 	 
	Strategic Objectives
	 	 	1/3	 

 

 

EXHIBIT B

DEVELOPERS DIVERSIFIED REALTY CORPORATION

Summary of Value Sharing Equity Program

     The Developers Diversified Realty Corporation Value Sharing Equity Program (the “Program”)
operates in conjunction with the Amended and Restated 2008 Developers Diversified Realty
Corporation Equity-Based Award Plan, as amended and restated (or any other equity plan adopted by
the Company) (the “Equity Plan”), and is designed to allow the Company to reward participants with
a portion of “Value Created” (as described below) through the grant of awards under the Equity
Plan.

     On six specified measurement dates, the Company will measure the Value Created during the
period between the start of the Program and the applicable measurement date. Value Created is
measured as the increase in the Company’s market capitalization (i.e., the product of the Company’s
share price and the number of shares outstanding as of the measurement date), as adjusted for any
equity issuances or equity repurchases, between the start of the Program and the applicable
measurement date.

     Each participant will be assigned a “percentage share” of the Value Created (e.g. 0.7250% of
the Value Created). After the first measurement date, each participant will receive a number of
Company shares with an aggregate value equal to two-sevenths of the participant’s percentage share
of the Value Created. After each of the next four measurement dates, each participant will receive
a number of Company shares with an aggregate value equal to three-sevenths, then four-sevenths,
then five-sevenths, and then six-sevenths, respectively, of the participant’s percentage share of
the Value Created. After the final measurement date, each participant will receive a number of
Company shares with an aggregate value equal to the participant’s full percentage share of the
Value Created. For each measurement date, however, the number of Company shares awarded to a
participant will be reduced by the number of Company shares previously earned by the participant as
of prior measurement dates. This will keep the participants from benefiting more than once for
increases in the Company’s share price that occurred during earlier measurement periods.

     The Company shares granted to a participant will then be subject to an additional time-based
vesting period. During this period, Company shares will generally vest in 20% annual increments
beginning on the date of grant and on each of the first four anniversaries of the date of grant,
subject in general to accelerated vesting upon the participant’s death or disability during the
vesting period, or to continued vesting if required under certain executive employment agreements
or for a termination of the participant’s employment without cause.

     The Program and the Company shares granted under the Program will be subject to the terms of
the Equity Plan. Therefore, the number of Company shares granted under the Program cannot exceed
the aggregate number of shares available for issuance under the Equity Plan. The Program, however,
provides for cash payments to be made to participants if the number of shares they earn exceeds the
Equity Plan’s limit on the number of shares available for awards. Likewise, under the Equity Plan,
a participant will be limited in terms of being paid out Company shares in excess of an annual
award limit set forth in the Equity Plan. The Program therefore allows participants to carry over
to the following calendar year any earned Company shares that exceed this annual individual limit.

     In the event that a Change in Control (as defined in the Program) occurs before the Program’s
final measurement date, the date of the Change in Control will be deemed a measurement date and
each

 

 

participant will be entitled to receive a final award for the Value Created as of the date of the
Change in Control. Participants will also be entitled to receive a pro rata award if they die,
become disabled or are terminated without cause during the Program. Participants will generally
forfeit their awards if their employment with the Company is otherwise terminated.

Value Sharing Opportunity

Mr. Wolstein has received a Value Sharing Opportunity under the Program of 0.7250% (72.50 basis
points).

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