Document:

<PAGE>   1
Exhibit 10.26

                                                                          CRONOS
                                                                Cronos Container
                                                                     Orchard Lea
20 January 2000                                                   Winkfield Lane
                                                                       Winkfield
                                                                         Windsor
                                                                       Berkshire
                                                                         SL4 4RU
Mr John Kirby                                                            England
Scipetts Lodge
Holyport
Berkshire
SL6 2NN

Dear John

Your Service Agreement

I am pleased to advice you that the Board of Directors has decided to offer you
further employment security by extending your appointment under your Service
Agreement with the Company from 31 March 2001 to 30 November 2001.

Accordingly clause 2.2 of your Service Agreement would read:

     "The appointment commenced on I April 199Y and shall continue (subject to
     earlier termination as provided in this Agreement) until November 2001 and
     thereafter shall continue until terminated by either party giving to the
     other not less than 3 months written notice

As this will constitute a change to your terms of employment your agreement is
required.  If the extension of your appointment is acceptable to you please
sign and return the duplicate copy of this letter

Yours sincere

Peter Young
Director:

I have read and accept the above change to the terms of my employment.

Signed         /s/ J c Kirby       Dated          20th January 2000

                                      E-30
<PAGE>   2

                            CRONOS CONTAINERS LIMITED

                                       AND

                                   JOHN KIRBY

                               SERVICE AGREEMENT

                                    Edwin Coe
                                2 Stone Buildings
                                  Lincoln's Inn
                                 London WCZA 3TH

                               Ref RJH/ZS/66 10846

                                      E-31
<PAGE>   3

Index to Clauses

<TABLE>
     <S>  <C>

     1    Interpretation
     2    Appointment and duration
     3    Duties of the Executive
     4    Place of work and residence
     S    Pay
     6    Pension
     7    lnsurancc benefits
     8    Car
     9    Expenses
     10   Holiday
     11   Sickness
     12   Confidentiality
     13   Termination of agreement
     14   Provisions after Termination
     15   General

          Schedule 1     Paxticularc Required by the ~mployment Rights Act 1996
</TABLE>

                                      E-32
<PAGE>   4
                                SERVICE AGREEMENT

THIS AGREEMENT is made this 1st day of April 1999.

BETWEEN:-
(1)  CRONOS CONTAINERS LIMITED a company incorporated in England and W21es with
company number 154391Y and whose registered office is at Orchard Lea, Winkfield
Lane, Winkfield, Windsor SL4RU ("the Company"), and

(2)  JOHN KIRBY of The Annex,  Scripetts Lodge,  Forest Green Road,  Holyport,
Maidenhead, Berkshire.  SL6 2NN ("the Executive").

WHEREAS.

(A)  The Executive employment with the Company commenced on 1 January 1985

(B)  The Company has appointed the Executive in the capacity as Senior Vice
President -Operations of the Company.

NOW THEREFORE in consideration of the mutual obligations and covenants
contained herein, the adequacy and sufficiency of which are hereby
acknowledged, the parties HAVE AGREED AS FOLLOWS:-

I    INTERPRETATION

1.1  The headings and marginal headings to the clauses are for convenience only
and have no legal effect.

1.2  Any reference in this Agreement to any Act or delegated legislation
includes any statutory modification or re-enactment of it or the provision
referred to.

                                      E-33
<PAGE>   5

1.3  In this Agreement:

'THE BOARD' means the Board of Directors of the Company), and includes any
committee of the Board duly appointed by it.

'GROUP COMPANY' means any company which for the time being is a company having
in ordinary share capital (as defined in s 832 of the Income and Corporation
Taxes Act 1988) of which not loss than 25 percent is owned directly or
indirectly by the Company or its holding company applying the provisions of s
839 of the Income and Corporation Taxes Act 1988 in the determination of
ownership.

'CHAIRMAN' means the Chairman of the Board or any person or persons jointly
holding such office of the Company from time to time and includes any person(s)
exercising substantially the functions of a managing director or chief
executive, officer of the Company.

2    Appointment and duration

2.1  The Company appoints the Executive and the Executive agrees to serve as
Senior Vice President - Operations of the Company or in such other appointment
as may from time to time be agreed.  The Executive accepts, that the Company
may at its discretion direct him to perform other duties or tasks not within
the scope of his normal duties and the Executive agrees to perform such duties
or undertake such tasks as if they were specifically required under this
Agreement provided performance of any such duties or tasks by the Executive
shall not affect The Executive's right to the remuneration provided for under
this Agreement.

2.2  The appointment commenced on 1 April 1999 and shall continue (subject to
earlier termination as provided in this Agreement) until 31 March 2001 and
thereafter shall continue until terminated by either party giving to the other
not less than 3 months written notice.

2.3  The Company may from time to time appoint any other person or persons to
act jointly with the Executive in his appointment.

2.4  The Executive warrants that by virtue of entering into this Agreement or
any other agreement between a Group Company and the Executive, he will not be
in breach of

                                      E-34
<PAGE>   6

any express or implied terms of any contract with or of any other obligation to
any third party binding upon him.

3    Duties of the Executive

3.1  The Executive shall at all time during the period of this Agreement-

     3.1.1     devote the whole of his time., attention and ability to the
               duties his appointment;

     3.1.2     faithfully and diligently perform those duties and exercise
               such powers consistent with them which are time to time vested in
               him;

     3.1.3     obey all lawful and reasonable directions of Chairman of the
               Company and/or the board.

     3.1.4     use his best endeavours to promote the interests of the Company
               and its Group Companies;

     3.1.5     keep the Chairman and/or the Board promptly and fully informed
               (in writing if so requested) of his conduct of the business
               or affairs of the Company ;and its Group Companies and provide
               such explanations as the Chairman and/or the Board may require;

     3.1.6     not at any time make any untrue or misleading statements relating
               to the Company or any Group Company.

     3.1.7     not take any action prejudicial to the interests of the Company
               or any Group Company.

3.2  The Executive shall (without further remuneration) if and for so long as
     the Company require during the period of the Agreement:

     3.2.1     carry out the duties of his appointment on behalf of any Group
               Company;

                                      E-35
<PAGE>   7

     3.2.2     act as an officer of any Group Company or hold any other
               appointment or office as nominee or representative of the Company
               or any Group Company;

     3.2.3     carry out such duties and the duties attendant on any such
               appointment as if they were duties to be performed by him on
               behalf of the Company.

4    PLACE OF WORK AND RESIDENCE

The Executive shall perform his duties at the business premises of the Company
at Orchard Lea, Winkfield Lane, Winkfield, Windsor, Berkshire, England and/or
such other place of business of the Company or of any Group Company as the
Company requires.

5    PAY

5.1  During his appointment the Company shall pay the Executive:-

     5.1.1     a salary at the rate of  GBP 97,890.00 per year which shall
               accrue day-to-day and be payable by equal monthly instalments in
               arrears on or about the 25th day of each month. 'The salary shall
               be deemed to include any fees receivable by the Executive as a
               Director of the Company or any Group Company, or of any other
               company or incorporated body in which he holds office as nominee
               or representative of the Company or any Group Company; and

     5.1.2     The Executive shall be entitled to participate in the Company's
               discretionary bonus programme in accordance with its terms and
               conditions and which pays a discretionary bonus based on Company
               and personal performance. The entitlement to participate in the
               Company's discretionary bonus programme will cease on termination
               of employment or if the Executive is placed on garden leave
               pursuant to the provisions of clause 13.5 hereof

5.2  The Executive's salary may be reviewed by the Board annually on 1st January
     and the rate of salary may be increased by the Company with effect from
     that date and by such amount if any as it shall in its absolute discretion
     think fit;

                                      E-36
<PAGE>   8

6    PENSION

6.1  The Company does not operate a contracted-out pension scheme, so there is
     no contracting out certificate in force.

6.2  At the Company's discretion, the Executive may be entitled to participate
     in the Company's Group Personal Pension Plan subject to the terms of the
     rules from time to time which are available for inspection from the Human
     Resources Department.  The Company shall be entitled at any time to
     terminate the plan or the Executive's membership of it.

6.3  The Company will continue to make the current level of payments into
     the Executive's pension scheme with Windsor Life Retirements Savings
     Account for the duration of the Executive's employment. Entitlement to such
     payments will cease on termination of the Executive's employment.

7    INSURANCE BENEFITS

7.1  The Executive shall be entitled to participate at the Company's expense
     in the Company's Life  Assurance Scheme and Permanent Health insurance
     Scheme and in the Company's private medical expenses insurance scheme,
     for himself, his spouse and dependent children subject always to the
     rules of such schemes details of which are available from the Human
     Resources Department.

8    CAR

8.1  Subject to the Executive holding a current full driving licence the
     Company shall provide the Executive, for his sole business use and
     private use by him and his spouse with a car of a make, model and
     specification selected by the Company (which in the reasonable opinion
     of the Board is commensurate with the status of the Executive and the
     image of the Company).  The entitlement to the provision of a company
     car shall cease on the termination of his employment.

8.2  The Company shall bear all standing and running expenses of the car
     except for use of the car by the Executive for holiday purposes and
     any additional insurance costs incurred to permit the Executive to use
     the car outside of the United Kingdom for private

                                      E-37
<PAGE>   9

          purposes and shall replace such car as provided in the Company's car
          scheme policy in effectt from time to time. The entitlement to fuel
          consumed during private use of the car shall cease should the Company
          place the Executive on garden leave to the provisions of clause 13.5
          hereof.

     8.3  The Executive shall always comply with all regulations laid down by
          the Company from time to time with respect to company cars; shall
          forthwith notify the Company of any accidents involving his company
          car and of any charges of driving offences which are brought against
          him and, on the termination of his appointment, shall forthwith return
          his company car to the Company at its head office.

     8.4  The Executive has a duty to produce and the Company has a right to
          examine the current driving licence of the Executive at the request of
          the Company at any time during normal working hours on reasonable
          notice throughout the term of the Executive's employment or his
          retention of the company car when at the risk of the Company or in the
          ownership of the Company.

9 EXPENSES

     9.1  The Company shall reimburse to the Executive on a monthly basis
          travelling, hotel, entertainment and other expenses reasonably
          incurred by him in the proper performance of his duties subject to
          the production to the Company of such vouchers or other evidence of
          actual payment of the expenses as the Company may reasonably
          require.

     9.2  Where the Company issues a company sponsored credit or charge card to
          the Executive he shall use such card only for expenses reimbursable
          under clause 9.1 above, and shall return it to the Company forthwith
          on the termination of his employment.

10 HOLIDAY

     10.1 In addition to English public holidays The Executive is entitled to 25
          working days paid holiday in each year (which runs from 1st January to
          31 December) to be taken at such time or times as are agreed with the
          Board.  The Executive shall not without the consent of The Board carry
          forward (save for a maximum of 5 days) any unused part of his holiday
          entitlement to a subsequent holiday year.

                                      E-38
<PAGE>   10
     10.2 For the holiday year during which his appointment commences or
          terminates the Executive is entitled to 2 working days holiday for
          each complete calendar month of his employment by the Company during
          that holiday year. On the termination of his appointment for whatever
          reason, the Executive shall either be entitled to pay in lieu of
          outstanding entitlement or be required to repay to the Company any
          salary received for holiday taken in excess of his actual entitlement.
          The basis for payment and repayment shall be 1/260 x of the
          Executive's annual basic salary for each day.

11 SICKNESS

     11.1 If the Executive; is absent because of sickness (including mental
          disorder) or injury he shall report this fact forthwith to the Human
          Resources Department and if the Executive is so prevented for seven or
          more consecutive days, he shall provide a medical practitioner's
          statement on the eighth day and weekly thereafter so that the whole
          period of absence is certified by such statements. Immediately
          following his return to work after a period of absence the Executive
          shall complete a Self-Certification form available from the Human
          Resources Department detailing the reason for his absence.

     11.2 If the Executive shall be absent due to sickness (including mental
          disorder) or injury duly certified in accordance with the provisions
          of clause 11.1 hereof, he shall be entitled to his full basic salary
          hereunder for a period up to six months of continuous absence or 25
          days absence in aggregate in any period of 12 months and thereafter
          such remuneration, if any, as the Board shall from time to time
          determine provided that such remuneration shall be inclusive of any
          statutory sick pay to which the Executive is entitled to under the
          provisions of the Social Security benefits Act 1992 and any Social
          security Sickness Benefit or other benefit recoverable by the
          Executive (whether or not recovered) may be deducted therefrom.

     11.3 For Statutory Sick Pay purposes the Executive's qualifying days shall
          be his normal working days.

     11.4 At any time during the period of his appointment, (but not normally
          more often than once every second year) the Executive shall at the
          request and expense of the Company permit himself to be examined by a
          registered medical practitioner to be selected by the

                                      E-39
<PAGE>   11
          Company and shall authorise such medical practitioner to disclose to
          and discuss with the Company's medical adviser the results of such
          examination and any matters which arise from it in order that the
          Company's medical adviser can notify the Company of any matters which,
          in his opinion, might hinder or prevent the Executive (if during
          period of incapacity) from returning to work for any period or (in
          other circumstances) from properly performing any duties of his
          appointment at any time.

12   CONFIDENTIALITY

     12.1 The Executive acknowledges that during his employment with the Company
          he will have access to and will be entrusted with confidential
          information and trade secrets relating to the business of the Company,
          other Group Companies and their customers and suppliers ("Confidential
          Information").

     12.2 The Executive will not during the term of the appointment (otherwise
          than in the proper performance of his duties and then only to those
          who need to know Confidential Information) or thereafter (except with
          the written consent of the Board or as required by law);

          (a)  divulge of communicate to any person (including any
               representative of the press or broadcasting or other media);

          (b)  cause or facilitate any unauthorised disclosure through any
               failure by him to exercise all due care and diligence, or

          (c)  make use of (other than for the benefit of any Group Company)

          any Confidential Information which may have come to his knowledge
          during his employment with the Company or in respect of which a Group
          Company may be bound by an obligation of confidence to any third party
          provided the Executive is or has been made aware of such obligation or
          confidence. The Executive will also use all reasonable endeavours to
          prevent the publication or disclosure of any Confidential Information.
          These restrictions will not apply to Confidential Information which
          after the appointment has been terminated has become available the
          public generally otherwise than through unauthorised disclosure or is
          disclosed 'in any legal proceeds.

                                      E-40
<PAGE>   12

     12.3 All notes-, memoranda and other records (whether in documentary form
          or stored on computer disk or tape) made by The Executive during his
          employment with the Company and which relate to the business of any
          Group Company shall belong to such Group Company and the Executive
          shall, from time to time, promptly hand over such notes, memoranda and
          other records to the Company (or as the Company may direct).

13   TERMINATION OF AGREEMENT

     13.1 AUTOMATIC TERMINATION

     This Agreement shall automatically terminate:
          13.1.1    on the Executive reaching his 65th birthday; or

          13.1.2    if the Executive becomes prohibited by law from being a
                    director; or

          13.1.3    if he resigns his office;

     13.2 SUSPENSION

          In order to investigate a complaint against the Executive of
          misconduct the Company is entitle to suspend the Executive on full pay
          for so long as may be necessary to carry out a proper investigation
          and hold a disciplinary hearing.

                                      E-41
<PAGE>   13

13.3 IMMEDIATE DISMISSAL

The Company may by notice-terminate this Agreement with immediate effect if the
Executive:

     13.3.1    commits any act of gross misconduct or repeat-or continues (after
               written warning) any other breach of his obligations under this,
               Agreement; or

     13.3.2    is guilty of any conduct which in the reasonable opinion of the
               Board brings him, the Company or any Group Company into
               disrepute: or

     13.3.3    is convicted of any criminal offence (excluding an offence under
               road traffic legislation in the United Kingdom or elsewhere for
               which he is not sentenced to any term of imprisonment whether
               immediate or suspended), or

     13.3.4    commits any act dishonesty whether relating to the Company, or
               Group Company, any of its or their employees or otherwise; or

     13.3.5    becomes bankrupt or makes any arrangement or composition with his
               creditors generally; or

     13.3.6    is in the reasonable opinion of the Board incompetent in the
               performance of his duties.

13.4 PAY IN LIEU

     On serving notice for any reason to terminate this Agreement or at any time
     thereafter during the currency of such notice the Company shall be entitled
     (but not obliged) to pay to the Executive his basic salary (at the rate
     then payable under clause 5 hereof) for the unexpired portion of his
     entitlement to notice.

13.5 GARDEN LEAVE

     The Company shall have the right at its discretion during the period of
     notice and any part thereof to assign the Executive to any other duties or
     to change the Executive's duties as and when required by the Company or to
     place the Executive on leave, in either case paying the basic salary and
     benefits excluding bonus due to the Executive.

13.6 MISCELLANEOUS

     On the termination of this Agreement for whatever reason,, the Executive
     shall at the request of the Company resign (without prejudice to any claims
     which the Executive may have against any company arising out of this
     Agreement or the termination thereof) from all and any offices which he may
     hold as a Director of the Company or of any Group Company and from all
     other appointments or offices which he holds as nominee or representative
     of the, Company or any Group Company and if he should fail to do so within
     seven days the Company is hereby irrevocably authorised to appoint

                                      E-42
<PAGE>   14
     some person in his name and on his behalf to sign any document or do any
     things necessary or requisite to effect such resignation(s) and/or
     transfer(s).

14   PROVISION AFTER TERMINATION

     14.1 The Executive agrees that he will not at any time after the
          termination of this Agreement either personally or by his agent,
          directly or indirectly:

          14.1.1    represent himself any being in any way connected with or
                    interested in the business of the Company or any Group
                    Company;

          14.1.2    use or disclose to any person, firm or company any
                    confidential information directly or indirectly relating to
                    the affairs of the Company or any Group Company or to a
                    customer of the Company or any Group Company which may have
                    been acquired by him in the course of or incidental to his
                    employment by the Company for his own benefit or for the
                    benefit of others or to the detriment of the Company or any
                    Group Company or such customer. The restriction shall
                    continue to apply after the termination of this Agreement
                    but shall cease to apply to information or knowledge which
                    may come into the public domain otherwise than through
                    unauthorised disclosure by the Executive or any other
                    person.

     14.2 The Executive shall not for a period of 6 months after the termination
          of this Agreement directly or indirectly and whether on his own behalf
          or on behalf of any other business, concern, person, partnership,
          firm, company or other body which is wholly or partly in competition
          with the business carried on by the Company or any Group Company;

          14.2.1    canvass, solicit or approach or cause to be canvassed or
                    solicited or approached for orders in respect of any
                    services provided or goods dealt in by the Company or any
                    Group Company in respect of the provision or sale of which
                    the Executive was engage during the last 12 months of his
                    employment with the Company, any person who at the date of
                    termination of this Agreement was negotiating with the
                    Company or Group Company for the supply of services or goods
                    or within 12 prior to such date is or was client or

                                      E-43
<PAGE>   15

                    customer of the Company or any Group Company or was in the
                    habit of dealing with the Company or Group Company and with
                    whom Executive shall have dealt.

          14.2.2    interfere or seek to interfere or take such steps as may
                    interfere with the continuance of supplies to the Company or
                    any Group Company (or the terms relating to such supplies)
                    from any suppliers who have been supplying components,
                    materials or services to the Company or any Group Company at
                    any time during the last 12 month of this Agreement;

          14.2.3    solicit or entire or endeavour to solicit or entice away
                    from the Company or any Group Company or offer or cause to
                    be offered any employment to any person employed by the
                    Company or any Group Company in an executive capacity at the
                    date of such termination for whom the executive is
                    responsible;

          14.2.4    deal with any person or person who or which at any time
                    during the period of 12 months prior to termination of this
                    Agreement have been in the habit of dealing under contract
                    with the Company or any Group Company.

     14.3 The restrictions contained in this clause are separate and severable
          and enforceable accordingly and considered reasonable by the parties
          (the Executive acknowledging the legitimate need for the Company and
          the Group Companies to protect their business interests) but in the
          event that any such restriction shall be found or held to void
          circumstances where it would be valid if some part therefore were
          deleted or distance of application reduced, then the parties agree
          that such restriction shall apply with such modification as may be
          necessary to make it valid and effective.

15   GENERAL

     15.1 STATUTORY PARTICULARS

          The further particulars of term of employment not contained in the
          body of this Agreement which must be given to the Executive in
          compliance with the Employment Rights Act 1996 are given in
          Schedule 1.

                                      E-44
<PAGE>   16

     15.2 PRIOR AGREEMENTS

          This Agreement acts out the entire agreement and understanding of the
          parties and is in substitution for any previous contracts of
          employment or for services between the Company or any of its Group
          Companies and the Executive (which shall be deemed to have been
          terminated by mutual consent).

     15.3 ACCRUED RIGHTS

          The expiration or termination of this Agreement however arising shall
          not operate to affect such of the provisions of this Agreement as are
          expressed to operate or have effect after then and shall be without
          prejudice to any accrued rights or remedies of the parties.

     15.4 PROPER LAW

          The validity construction and performance of this Agreement shall be
          governed by English law.

     15.5 ACCEPTANCE OF JURISDICTION

          All disputes claims or proceedings between the parties relating to the
          validity construction or performance of this Agreement shall be
          subject to the non-exclusive jurisdiction of the High Court of Justice
          in England and Wales ('the High Court') to which the parties
          irrevocably submit.

     15.6 NOTICES

          Any notice to be given by a party under this Agreement must be in
          writing and must be given by delivery at or by sending by first class
          post or other faster postal service, or telex, facsimile transmission
          or other means of telecommunication in permanent written form
          (provided the addressee has his or its own facilities for receiving
          such transmission) to the last know postal address or relevant
          telecommunications number of the other party. Where notice is given by
          sending in a prescribed manner it shall be deemed to have been
          received when in the ordinary course of the means of transmission it
          would be received by the addressee. To prove the giving of a notice it
          shall be

                                      E-45
<PAGE>   17
          sufficient to show it was despatched. A notice shall have effect from
          the sooner of its actual or deemed receipt by the addressee.

IN WITNIESS WHEREOF THE EXECUTIVE AND THE COMPANY HAVE EXECUTED
THIS DOCUMEENT AS A DEED THE DAY AND YEAR FIRST BEFORE WRITTEN

Signed and delivered as            /s/ J C kirby
a deed by the Executive

in the presence of                 /s/ K Cuzner
Name:
Address:
Occupation:

Signed and delivered as a deed
By [      ] Director and           /s/ P J Younger

[      ] (Director/Secretary)      /s/  D J Tietz
for and on behalf of the Company

                                      E-46
<PAGE>   18
                                   SCHEDULE 1

                           Employment Rights Act 1996

The following information is given to supplement the information given in the
body of the Agreement in order to comply with the requirements of the Act

1    The Executive's appointment by the Company commenced on 1 April 1999,

2    The Executive's period of continuous employment with the Company began on 1
     January 1985.

3    The Executive's hours of work are the normal hours of the Company from
     9.00 am to 5:30 pm Monday to Friday each week together with such
     additional hours as may be necessary so as properly to fulfil his duties.

4    No Contracting-Out Certificate pursuant to provisions of the Pensions
     Scheme Act 1993 is held by the Company in respect of the Executive's
     employment.

5    There is not formal disciplinary procedure applicable to this employment.
     The Executive is expected to exhibit a high standard of proprietary,
     integrity and efficiency in all his dealings with and in the name of the
     Company and Group Company and may suspended on basic pay and benefits
     (excluding bonus) or required to take leave during any investigations
     which it may be necessary for the Company to undertake.

6    If the Executive has any grievance relating to his employment (other than
     one relating to a disciplinary decision) he should refer such grievance to
     the Chairmen and if the grievance is not resolved by discussion with him
     it will referred to the Board for resolution.

7    There are no collective agreement which directly or indirectly affect the
     Executive's terms and conditions of employment.

                                      E-47<PAGE>   1
Exhibit 10.27

                   AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement") is made and
entered into effective as of March 24, 2000 (the "Effective Date") by and
between Peter J. Younger ("Younger") and The Cronos Group, a limited liability
company organized and existing under the laws of Luxembourg (the "Company")
(collectively, the "Parties").

                                R E C I T A L S

WHEREAS, since 1987, Younger has been employed as an officer by the Company
and/or one or more direct or indirect wholly-owned subsidiaries of the Company;

WHEREAS, since March 1997, Younger has served as the Chief Financial Officer of
the Company and as the Chief Financial Officer and/or an executive officer of
one or more subsidiaries of the Company;

WHEREAS, Younger is currently a party to an Employment Agreement, dated as of
July 1, 1998 (the "Prior Employment Agreement") and a severance agreement, dated
as of the same date, ("Severance Agreement") with Cronos Containers Limited, a
United Kingdom corporation and a wholly-owned subsidiary of the Company ("CCL");

WHEREAS, the Parties" desire to amend and restate, in its entirety, Younger's
Prior Employment Agreement and to replace it with this Agreement;

WHEREAS, the Parties also desire to terminate the Severance Agreement;

WHEREAS, effective as of the date hereof, the Parties hereby agree that the
terms of this Agreement shall supercede, in its entirety, the terms of the Prior
Agreement and that the Severance Agreement shall be terminated; and

                                      E-48
<PAGE>   2

WHEREAS, the Parties further agree that this Agreement shall govern, in all
respects, the terms of the employment of Younger by the Company.

NOW, THEREFORE, the Parties agree as follows:

1. POSITION

During the term of this Agreement ("Term"), Younger shall be employed by the
Company as its Chief Financial Officer and shall be nominated to the Company's
Board of Directors (the "Board") to serve as a member of the Board. Younger
shall also serve as the Chief Financial Officer and/or director of one or more
subsidiaries of the Company, including CCL, as designated from time to time by
the Board and/or by the Chief Executive Officer of the Company (hereinafter, the
"Subsidiaries").

2. TERM

(a) The Term shall commence on the Effective Date and shall continue until
December 31, 2000. Thereafter, the Term shall continue for an additional year
ending on December 31, 2001. Any further extensions shall only occur upon the
written agreement of the Parties hereto.

(b) Younger shall work exclusively for the Company (which, for the purposes of
this provision, includes the Subsidiaries) during the Term.

3. ANNUAL SALARY

Younger's annual salary for services rendered under this Agreement shall be Two
Hundred Fifty Thousand Dollars ($250,000), (the "Initial Base Salary") paid in
accordance with the Company's standard payroll practices. Commencing January 1,
2001, Younger's annual salary may be increased, in the discretion of the Board,
but shall not be reduced. In all events, Younger's annual salary for the year
2001, and for each year thereafter during the Term shall be increased, at a
minimum, in accordance with the ratio that the consumer price index compiled and
published by the United States Department of Labor's Bureau of Labor Statistics
for the San Francisco/Oakland Metropolitan area ("CPI") for the year just ended
bears to said figure for the calendar year preceding the year just ended. Such
increased CPI shall be

                                      E-49
<PAGE>   3
applied to the Initial Base Salary, as previously increased by the CPI, and not
necessarily to the prior year's annual salary. For accounting and tax reporting
purposes, the annual salary, bonus, and other compensation and benefits payable
to Younger shall be allocated among the Company and the Subsidiaries based upon
the services rendered by Younger to the Company and the Subsidiaries.

4. BONUS

(a) For each calendar year that ends during the Term of this Agreement, the
Company shall pay a cash bonus to Younger which, with respect to the 1999
calendar year, shall be in an amount equal to up to 50% of Younger's annual
salary and shall be calculated on the basis of the performance goals established
by the Compensation Committee of the Board at its meeting of June 3, 1999, and,
with respect to any subsequent calendar year (including, but not limited to, the
2000 calendar year), on the basis of comparable performance goals or such other
criteria determined by the Board, in its discretion with respect to such
calendar year.

(b) In the event that during the Term, any "Change in Control" (as defined in
Exhibit A hereto) of the Company occurs, Younger shall receive a single sum cash
bonus (the "Transaction Bonus") in a dollar amount which shall be determined and
paid to Younger in accordance with the terms and provisions of Exhibit B also
attached hereto. Notwithstanding any contrary provision in this Agreement,
payment of the Transaction Bonus shall be subject to any reduction required by
Section 13 hereof.

5.   ALLOCATION OF COMPENSATION AMONG THE COMPANY AND SUBSIDIARIES

For accounting and tax reporting purposes, the annual salary, bonus, and other
compensation and benefits (collectively, "Compensation") payable to Younger
shall be allocated among the Company and the Subsidiaries based upon the
services rendered by Younger to the Company and the Subsidiaries. Younger shall,
within ninety (90) days of the date of this Agreement, in consultation with the
Company's accounting staff and outside auditors, and subject to the approval of
the Audit Committee of the Board, develop an allocation method and procedures
for the purpose of allocating Younger's Compensation among the Company and the
Subsidiaries. The

                                      E-50
<PAGE>   4

procedures selected shall be designed to fairly reflect an allocation of
Younger's Compensation among the Company and the Subsidiaries based upon the
services rendered by Younger to the Company and the Subsidiaries, in accordance
with sound accounting practice.

6. GROUP/EXECUTIVE BENEFITS

(a) Except as otherwise specifically provided herein, Younger and his family
shall participate, on terms no less favorable than were provided to other
executive officers of the Company, in any group and/or executive life,
hospitalization or disability insurance plan, health program, pension, profit
sharing, 401(k) and similar benefit plans (qualified, non-qualified and
supplemental) that the Company sponsors for its officers or employees, and in
other fringe benefits, including any automobile allowance or arrangement, club
memberships and dues, and similar programs (collectively referred to as the
"Benefits"). All waiting periods for such plans shall be waived, except with
respect to any pension plan where waiver of the applicable waiting period is not
permitted. It is understood that participating on the "same terms" as other
executive officers of the Company means the same rules and/or policies shall
apply, recognizing that the result upon applying them can be affected by
different credited years of service.

(b) Without limiting the generality of the foregoing provisions of this Section
6, the Company shall provide the following specific benefits to Younger:

     (i) Health Benefits. Younger, on behalf of himself and his family, at
Company expense, shall be entitled to secure medical care which is, in his sole
discretion, of the same quality and convenience they would receive, and at the
same total expense to Younger, as if Younger were an employee of Cronos Capital
Corp. ("CCC"), a U.S. Subsidiary of the Company, were Younger a participant in
CCC's medical, dental and other health-related benefit plans. To the extent that
Younger has unreimbursed medical expenses resulting from medical treatment for
himself or his family, he may submit a statement of such expenses to the officer
of CCC in charge of medical benefits, together with any other information
required by CCC, for reimbursement pursuant to the standards set forth in this
paragraph. The decision of the executive in charge of medical benefits
concerning the amount of

                                      E-51
<PAGE>   5

reimbursement due Younger shall be final, unless not made in good faith. The
Company shall not be responsible for consequences or damages flowing from any
act or omission by the Company in providing medical care to Younger or his
family. The maximum amount of expense reimbursement under this paragraph to
which Younger is entitled for medical expenses for himself and his family for
any calendar year shall not exceed L.15,000.

     (ii) Automobile. For the Company's convenience, and as a condition to
Younger's employment by the Company, Younger shall, to the extent reasonably
possible, use a luxury automobile to be provided and maintained by the Company.
The Company shall also provide, at the Company's expense, adequate personal
injury and property damage insurance covering such automobile.

     (iii) Tax Preparation and Planning. The Company will pay the fees for
outside tax planning and tax return preparation services for Younger, by
recognized experts in such fields, and any fees or expenses incurred by Younger
in connection with any investigation or audit of such returns by any taxing
authority.

     (iv) Mitigation Tax for Incremental Taxes. In recognition of the fact that
Younger currently resides in England, the Company shall reimburse Younger for
any additional income taxes payable by him on his income earned as an officer of
the Company or any Subsidiary over the income taxes that would be payable on
such income were Younger a resident of the State of California. The amount of
any such reimbursement shall be confirmed by the outside auditors of the
Company, and shall be payable to Younger on or prior to August 31st of each year
for income earned by Younger for the prior calendar year.

     (iii) Vacation. Younger shall be entitled to twenty-five (25) business days
of vacation during each calendar year during the term of this Agreement and any
extensions thereof, prorated for partial years. Younger may carry over to the
subsequent year up to five (5) business days of vacation each year that he does
not use.

     (ivi) Life Insurance.  For the term of this Agreement and any extensions
thereof, the Company shall, at its expense, procure  and keep in

                                      E-52
<PAGE>   6
effect life insurance on the life of Younger, payable to such beneficiaries as
he may from time to time designate, in such amounts as called for by the
Company's current policy with respect to the provision of life insurance to
senior executives of the Company.

     (vii) Moving and Housing Allowance. In recognition of the fact that Younger
relocated to England to render services to the Company, the Company agrees to
reimburse Younger should his employment by the Company be terminated, for any
reason, for all moving or relocation costs reasonably incurred by him and his
family in relocating after any such termination to the United States. Such
moving and relocation costs may include, without limitation, transportation
costs, living expenses while Younger finds accommodations in the United States,
the costs of moving furniture and personal belongings, and any other similar
costs and expenses. Any such costs and expenses shall be paid within ten (10)
days of Younger's submission of invoices setting forth such costs and expenses.

7. EQUITY BASED INCENTIVE COMPENSATION

(a) The Company currently has in place an incentive stock option plan pursuant
to the provisions of Section 422 of the Internal Revenue Code of 1986, as
amended (the "Code") (hereinafter, the "Option Plan"). The Company agrees that
Younger, as the Chief Financial Officer of the Company, shall participate in the
Option Plan, at the time or times and consistent with the terms and vesting
rules generally applicable to other senior executives of the Company under the
Option Plan.

(b) If there is a generally applicable award of options or restricted shares to
senior executives of the Company other than an award of options under the Option
Plan, Younger shall participate in such award(s) on terms consistent with the
Company's then-current practices with respect to awards made to other senior
executives. The Compensation Committee of the Board, in its sole discretion,
shall determine whether and to what extent stock options shall be granted to
Younger under the Option Plan.

(c) In accordance with the terms of the Stock Appreciation Rights Agreement
dated as of October 13, 1999 between the Company and Younger (the "SAR
Agreement"), the Company granted to Younger 200,000

                                      E-53
<PAGE>   7

Share Units (as defined in the SAR Agreement). All other terms and conditions
applicable to the grant of the Share Units are set forth in the SAR Agreement.

(d) In the event of an "Equity Change in Control" of the Company, as that term
is defined in Exhibit C hereto, then all of Younger's awards of stock options,
restricted shares or similar equity-based interests which have not already
vested shall immediately vest in full.

8. EVENTS TRIGGERING SEVERANCE BENEFITS

Upon the termination of Younger's employment for any of the reasons described in
subsections (a) - (c) below, he will be entitled to receive the severance
benefits described in Section 9 hereof:

(a) The Company terminates Younger's employment without "Cause."

(b) Younger terminates his employment with the Company "For Good Reason," which
means he terminates it within six (6) months of any event that constitutes "Good
Reason," as defined in subsection (d) below (the phrase "Without Good Reason"
means any termination by Younger other than within six (6) months of an event
constituting Good Reason).

(c) Younger resigns, with or without Good Reason within the thirty (30) day
period commencing one (1) year following an "Equity Change in Control" of the
Company, as that term is defined in Exhibit C hereto.

(d) Definitions:

          (i) "Cause" refers to Younger's willful dishonesty toward, fraud upon,
or deliberate injury or attempted injury to, the Company, or by reason of
Younger's willful material breach of this Agreement which has resulted in a
material injury to the Company; provided, however, that Cause shall not be
deemed to exist as a result of any act or omission believed by Younger, in good
faith, to have been in the interest of the Company.

          (ii) "Good Reason" for Younger to resign shall exist if any of the
following events occur without his consent: (A) the Company fails to pay or
provide required compensation, after the omission has been called to

                                      E-54
<PAGE>   8

the Company's attention and it has been given a reasonable opportunity to cure
the situation; or (B) the Company materially reduces Younger's titles, position,
duties and/or authority; or (C) the Company fails to nominate Younger to serve
on the Board, or (D) the Company materially breaches the terms of this
Agreement, provided, however, Younger has called the breach to the Company's
attention and allowed the Company a reasonable opportunity to cure it.

     (iii) "Notice of Termination" shall mean a written notice which (A)
indicates the type of termination under this Agreement (e.g., for Cause) and
cites the applicable provision of this Agreement, (B) briefly describes the
facts and circumstances claimed to provide a basis for the stated type of
termination, if applicable, and (C) specifies the date of termination from
active service, provided, however, if Younger is eligible for the
Non-Solicitation Payment payable pursuant to Section 10 hereof, the Company
shall provide Younger with thirty (30) days" advance written notice of his date
of termination in order to enable him to make a timely election to receive the
Non-Solicitation Payment provided under Section 10 hereof.

(e) Termination because of Younger's death or disability will not require
payment of the severance benefits described in Section 9, nor will termination
for Cause or Younger's termination of employment Without Good Reason.

     (i) For purposes of this Agreement, Younger will be deemed to be disabled
from performing his duties upon the earlier of: (A) the end of a six (6)
consecutive month period during which, for any reason, he has been unable to
substantially perform his usual and customary duties as Chief Financial Officer;
or (B) the date when it becomes apparent that, for any reason, he will be unable
to substantially perform his usual and customary duties as Chief Financial
Officer for a period of at least six (6) consecutive months, provided, however,
that in the case of a physical or mental injury or disease, his disability must
be determined in writing by a reputable physician or psychologist, selected
jointly by the Board and Younger (or his personal representative). The Company
shall promptly give Younger written notice of any determination that Younger is
disabled from working and of any decision by the Board to terminate his
employment by reason thereof. In the event of disability, until the date of
termination from active service, the base salary payable to Younger under
Section 3 hereof shall be reduced dollar-for-dollar by

                                      E-55
<PAGE>   9
the amount of disability benefits paid to Younger in accordance with any
disability plan, policy or program of the Company.

9. SEVERANCE BENEFITS

If Younger qualifies for severance benefits under the provisions of Section 8
hereof, then the following terms and conditions shall apply:

(a) The Company shall pay Younger all "Accrued Obligations" in a lump sum in
cash within thirty (30) days following his last day of active service; provided,
however, that any portion of the Accrued Obligations which consists of bonus,
deferred compensation, or incentive compensation shall be determined and paid in
accordance with the terms of the relevant plan or provision. "Accrued
Obligations" shall mean, as of the last day of active service, the sum of: (i)
his base salary under Section 3 hereof through the date of termination from
active service, to the extent not already paid; (ii) the amount of any bonus,
incentive compensation, deferred compensation and other cash compensation
accrued by Younger as of his last day of active service, to the extent not
already paid; and (iii) any vacation pay, expense reimbursements and other cash
entitlements accrued by Younger as of his last day of active service, to the
extent not already paid. For purposes of this Section, amounts shall be deemed
to accrue ratably over the period during which they are earned, but no
discretionary compensation shall be deemed earned or accrued until it is
specifically approved by the Board in accordance with the applicable plan,
program or policy.

(b) Within thirty (30) days after Younger's last day of active service, the
Company shall pay him a lump sum equal to the amount that results when the
fraction described in subsection (i) below is multiplied times the sum described
in subsection (ii) below:

     (i) A fraction, the numerator of which is the lesser of (A) the number of
days remaining from Younger's last day of paid active service until the last day
of the term of this Agreement or (B) 365, and the denominator of which is 365;

     (ii) The sum of his: (A) then-current annual salary and (B) then-current
annual performance bonus target or, if not yet established, his most recent
annual bonus payment.

                                      E-56
<PAGE>   10

However, the payment to Younger under this paragraph (b) shall be conditioned
upon his compliance with the Company's policy (as in effect on the Effective
Date or on his last day of active service, whichever is more favorable to
Younger) regarding all salaried employees executing a waiver and release prior
to receiving severance compensation.

(c) Within thirty (30) days after Younger's last day of active service, the
Company shall pay him a lump sum that represents a pro-rated annual bonus for
the year of termination. This amount shall be calculated by taking his target
bonus (which, in the case of the target bonus for the 1999 calendar year shall
be in an amount equal to up to 50% of Younger's annual salary and shall be
calculated on the basis of the objective criteria approved by the Compensation
Committee of the Board at its meeting of June 3, 1999 (but excluding for
purposes of this Section, the Committee's subjective determination with respect
to Younger's overall performance for the year)) or, if such target bonus has not
been established (e.g. the bonus for the 2000 calendar year), his bonus for the
prior year, for the year of termination and multiplying it times a fraction (i)
whose numerator is the number of days elapsed in the current calendar year from
January 1 of that year through his final day of active service, and (ii) whose
denominator is 365 (e.g., if his last day of active service was February 5, then
this fraction would be .10, calculated as follows: 36 days elapsed in year
divided by 365 days).

(d) All options and restricted stock (including both shares and units) that were
granted before the date of termination but have not yet vested shall immediately
vest upon Younger's final day of active service. All such options, and also
options that previously vested but have not yet been exercised, shall remain
exercisable in accordance with the Option Plan's terms for retirees.

The Company may at any time discharge Younger from active service without
advance notice, by providing a Notice of Termination. Nothing in this Agreement
shall be construed as requiring the Company to allow Younger to continue
actively performing the duties of Chief Financial Officer. Regardless of the
reason for such termination or whether it constitutes a breach by the Company of
this Agreement, Younger's exclusive remedy shall be payment of the severance
benefits described in subsections 9(a) - 9(d) hereof; he shall not be entitled
to reinstatement, nor to any other damages for wrongful

                                      E-57
<PAGE>   11

termination; nor, after his termination from active service, shall he be
entitled to any other salary, benefits or other compensation under this
Agreement.

10. NON-SOLICITATION PAYMENT

In the event that Younger's employment with the Company terminates under
circumstances that would entitle him to the payment of severance under Section
9(b) hereof, then Younger shall be eligible to receive, at his option, an
additional single lump sum payment in a dollar amount equal to 100% of the
annual salary and bonus payable to him under Section 9(b) for a 12-month period
in exchange for his agreement to comply with the non-solicitation and
confidentiality requirements contained in Section 12 hereof (the
"Non-Solicitation Payment"). In order to receive the Non-Solicitation Payment
Younger must, on or before his last day of service with the Company, notify the
Company in writing of his election to receive the Non-Solicitation Payment and,
in connection therewith, Younger must consent in writing to comply with the
requirements of Section 12 for a twenty-four (24) month period. Within thirty
(30) days after Younger" last day of service with the Company, the Company shall
pay Younger the Non-Solicitation Payment; provided, however, that if Younger
violates the provisions of Section 12 hereof at any time during the twenty-four
(24) month period, Younger shall promptly repay to the Company the
Non-Solicitation Payment.

11.  OBLIGATIONS OF THE COMPANY UPON TERMINATION BY DEATH, DISABILITY,
     DISCHARGE FOR CAUSE, OR RESIGNATION WITHOUT GOOD REASON

In the event this Agreement terminates due to the death or disability of
Younger, or due to a termination for Cause or resignation or Younger's
retirement Without Good Reason, the Company shall pay to Younger all Accrued
Obligations in a lump sum in cash within thirty (30) days after his last day of
active service; provided, however, that any portion of the Accrued Obligations
which consists of bonus, deferred compensation, or incentive compensation shall
be determined and paid in accordance with the terms of the relevant plan or
provision. Nothing in this Section shall limit or otherwise adversely affect any
rights Younger may have under applicable law, under any other agreement with the
Company including, without limitation, the

                                      E-58
<PAGE>   12

Indemnification Agreement, or under any compensation or benefit plan or policy
of the Company.

12. NON-SOLICITATION AND CONFIDENTIALITY

(a) If Younger's employment with the Company is terminated for any reason that
entitles him to receive severance benefits pursuant to Section 9 of this
Agreement, and he elects to receive the Non-Solicitation Payment, then for a
period of twenty-four (24) months immediately following his last day of active
service, Younger shall comply with the requirements of this Section 12.

     (i) Non-Solicitation of Business Contacts. Younger shall not directly or
indirectly, solicit or interfere with any relationship with any customer,
supplier, investor, limited partner or deal referral source of the Company, CCC,
or any other affiliate.

     (ii) Non-Solicitation of Employees. Younger shall not directly or
indirectly solicit or encourage any Existing Company Employee to leave the
Company or to accept any position with any other company that currently engages
in business with the Company. "Existing Company Employee" shall mean someone
who: (a) became employed by the Company before Younger's active service
terminates, and (b) is still employed by the Company as of the date when the
facilitating act or solicitation takes place, and (c) holds a manager, director,
or officer level position at the Company (or an equivalent position based on job
duties).

(b) Confidentiality. Younger shall not use or disclose to anyone any
Confidential Information regarding the Company and its affiliates. "Confidential
Information" shall include all non-public information Younger acquires by virtue
of his positions with the Company which might be of material value to a
competitor or which might cause any economic loss (directly or via loss of an
opportunity) or substantial embarrassment to the Company or its customers,
lessees, or suppliers if disclosed. Examples of such Confidential Information
include, without limitation, non-public information about the Company's
strategic or marketing plans; its lessees, customers, and suppliers; its
business operations and structure; its pricing policies, or its non-public
financial data.

                                      E-59
<PAGE>   13

(c) Remedies. In the event of a breach or threatened breach of any term of this
Section 12, the Company shall be entitled to injunctive relief and/or damages.
The Parties agree that breach of this Section 12 would cause irreparable injury
to the Company for which there would be no adequate remedy at law, due among
other reasons to the inherent difficulty of determining the precise causation
for loss of customers or measuring the exact impact of losing key employees or
having Confidential Information disclosed.

(d) Recitals. Younger acknowledges that by virtue of the positions he will hold
with the Company, he will acquire Confidential Information, including, without
limitation, knowledge of operational plans, strategic long-range plans, and
leasing and marketing plans. Younger also acknowledges that by virtue of the
positions he will hold with the Company, he will learn which Existing Company
Employees are critical to the Company's success and will develop relationships
he otherwise would not have had with such employees and with customers,
suppliers, investors, limited partners and deal referral sources.

13. GOLDEN PARACHUTE EXCISE TAX

(a) In the event any payment that is either received by Younger or paid by the
Company on his behalf or any property or any other benefit provided to him under
this Agreement or under any other plan, arrangement or agreement with the
Company or any other person whose payments or benefits are treated as contingent
on a change of ownership or control of the Company (or in the ownership of a
substantial portion of the assets of the Company) or any person affiliated with
the Company or such person (but only if such payment or other benefit is in
connection with Younger's employment by the Company) (collectively the "Company
Payments"), will be subject to the tax (the "Excise Tax") imposed by Section
4999 of the Code (and any similar tax that may hereafter be imposed by any
taxing authority), the amounts of any Company Payments shall be automatically
reduced to an amount one dollar less than an amount that would subject Younger
to the Excise Tax. The dollar amount of the reduction, if any, to be made with
respect to any Company Payments shall be determined by the Company's Accountants
(as such term is defined in Section 13(b) below) on or before the date such
Company Payments are due and payable to Younger.

                                      E-60
<PAGE>   14

(b) For purposes of determining whether any of the Company Payments will be
subject to the Excise Tax and the amount of such Excise Tax, (x) the Company
Payments shall be treated as "parachute payments" within the meaning of Section
280G(b)(2) of the Code, and all "parachute payments" in excess of the "base
amount" (as defined under Code Section 280G(b)(3) of the Code) shall be treated
as subject to the Excise Tax, unless and except to the extent that, in the
opinion of the Company's independent certified public accountants, Deloitte &
Touche LLP, San Francisco (the "Accountants") such Company Payments (in whole or
in part) either do not constitute "parachute payments," represent reasonable
compensation for services actually rendered within the meaning of Section
280G(b)(4) of the Code in excess of the "base amount" or are otherwise not
subject to the Excise Tax, and (y) the value of any non-cash benefits or any
deferred payment or benefit shall be determined by the Accountants in accordance
with the principles of Section 280G of the Code. In the event that the
Accountants are serving as accountant or auditor for the individual, entity or
group effecting the Change in Control, Younger may appoint another nationally
recognized accounting firm to make the determinations hereunder (which
accounting firm shall then be referred to as the "Accountants" hereunder). All
determinations hereunder shall be made by the Accountants which shall provide
detailed supporting calculations both to the Company and Younger at such time as
it is requested by the Company or Younger. If the Accountants determine that
payments under this Agreement must be reduced pursuant to this paragraph, they
shall furnish Younger with a written opinion to such effect. The determination
of the Accountants shall be binding upon the Company and Younger.

(c) The Company agrees that it shall be responsible for all charges of the
Accountant.

14 NO DUTY TO MITIGATE

With respect to the severance benefits provided under Section 9 and 10 of this
Agreement, Younger shall not have any duty to mitigate his income loss after a
termination by finding alternative employment nor shall amounts he earns from
other employment be offset against those benefits.

                                      E-61
<PAGE>   15

15 TERMINATION BY EXECUTIVE

Younger shall have no personal liability for damages to the Company for
voluntarily terminating his employment at any time, with or Without Good Reason,
so long as he gives at least thirty (30) days prior written notice.

16 ARBITRATION

Should any dispute or controversy arising from or related to this Agreement
arise between the Parties that the Parties are incapable of resolving themselves
through good faith negotiation, then such dispute or controversy shall be
submitted for resolution by J.A.M.S./ENDISPUTE ("JAMS") in San Francisco,
California, or at such other location as is agreed upon by the Parties. Any
dispute shall first be submitted to JAMS for mediation pursuant to the mediation
services provided by JAMS. Should the dispute between the Parties not be
successfully mediated by JAMS within ninety (90) days of its submission (subject
to any extension agreed to by the Parties) then and in such event the dispute
shall be submitted for binding arbitration by JAMS pursuant to the rules and
practices of JAMS. Unless agreed to by the Parties, the representative of JAMS
who attempts to mediate any dispute between the Parties shall not be the
representative of JAMS who arbitrates the dispute. Judgment upon any award by
the arbitrator(s) may be entered in any court having jurisdiction thereof. It is
agreed that the prevailing party in any such arbitration or other action arising
from or relating to this Agreement shall be entitled to reimbursement of its or
his reasonable costs and expenses, including attorneys" fees. Each Party
consents to the exercise over it or him of personal jurisdiction by the
arbitrator(s) selected by JAMS to resolve any dispute hereunder.

17 FEES OF NEGOTIATING THIS AGREEMENT

The Company will pay all legal, accounting and other professional fees and
related expenses reasonably incurred by Younger in connection with the
negotiation and preparation of this Agreement.

18 INDEMNIFICATION

To the fullest extent permitted by law and the Company's bylaws (and/or
resolutions or policies adopted by the Board), the Company shall

                                      E-62
<PAGE>   16

indemnify Younger (including the advancement of expenses) for any judgments,
fines, amounts paid in settlement and reasonable expenses, including attorneys"
fees, incurred by Younger in connection with the defense of any lawsuit or other
claim to which he is made a party by reason of being an officer, director or
employee of the Company or any of its Subsidiaries. The Company and Younger have
entered into an Indemnification Agreement for the purpose of implementing the
indemnification commitment of this Section 18.

19 BINDING EFFECT

This Agreement shall be binding upon and inure to the benefit of the heirs and
representatives of Younger and the successors and assigns of the Company. The
Company shall require any successor (whether direct or indirect, by purchase,
merger, reorganization, consolidation, acquisition of property or stock,
liquidation or otherwise) to all or a substantial portion of its assets to
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place; provided, however, that Younger shall have the same obligations
to the successor as he would have had to the Company. Regardless of whether such
an agreement is executed, this Agreement shall be binding on any successor of
the Company in accordance with the operation of law, and such successor shall be
deemed "the Company" for all purposes under this Agreement.

20 NOTICES

Any notice, demand or communication required or permitted to be given by any
provision of this Agreement shall be deemed properly given if given in writing
or by electronic mail and either delivered through a commercially recognized
overnight delivery service or, if sent by electronic mail or telecopier, to the
party or to an officer of the party to whom the same is directed, addressed as
follows:

(a) If to Cronos, to:         The Cronos Group
                              444 Market Street, 15th Floor
                              San Francisco, California 94111
                              Attn:  Dennis J. Tietz
                              Chief Executive Officer
                              Fax:  (415) 677-9196

                                      E-63
<PAGE>   17

(b) If to Younger, to:        Peter J. Younger
                              Orchard Lea, Winkfield Windsor
                              Berkshire SL44RU
                              England
                              Fax: 011-44-1344-894-102

Any party identified above may change the address to which notices are to be
given hereunder by giving notice to the other party in the manner herein
provided.

21 AMENDMENT OF AGREEMENT

This Agreement may not be amended except by written agreement signed by both
Parties. Only the Board has the authority to authorize such an amendment on
behalf of the Company.

22 SEVERABILITY

Each term of this Agreement is deemed severable, in whole or in part, and if any
provision of this Agreement or its application in any circumstance is found to
be unlawful or invalid, the remaining terms and provisions shall remain in full
force and effect.

23 GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of
the State of New York without reference to conflict of law principles.

24 EXECUTION IN COUNTERPARTS

This Agreement may be executed by the Parties hereto in counterparts, each of
which shall be deemed to be an original, but all such counterparts shall
constitute one and the same instrument, and all signatures need not appear on
any one counterpart.

                                      E-64
<PAGE>   18

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
day and year first above written.

                                THE CRONOS GROUP

                                By: /s/ D J Tietz
                                    ---------------------------------
                                    Dennis J. Tietz
                                    Chief Executive Officer

                                    /s/ P J Younger

                                    Peter J. Younger

                                      E-65
<PAGE>   19

                                    EXHIBIT A

                         DEFINITION OF CHANGE IN CONTROL

For purposes of Section 4(b) of the Agreement, the term "Change in Control"
shall be defined to mean the occurrence of any of the following events:

(i) any "person" as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934 ("Act") (other than the Company, any trustee or
other fiduciary holding securities under any employee benefit plan of the
Company, or any company owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of Common
Stock of the Company), is or becomes the "beneficial owner" (as defined in Rule
13d-3 under the Act), directly or indirectly, of securities of the Company
representing fifty percent (50%) or more of the combined voting power of the
Company's then outstanding securities;

(ii) the closing of an agreement and plan of merger or consolidation of the
Company with any other corporation is approved, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than fifty percent (50%) of the combined voting power of
the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation; provided, however, that a merger
or consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no person acquires more than twenty-five percent
(25%) of the combined voting power of the Company's then outstanding securities
shall not constitute a Change in Control of the Company for purposes of this
Exhibit A and the Agreement; or

(iii) the closing of an agreement for the sale or disposition by the Company of
all or substantially all of the Company's assets other than the sale of all or
substantially all of the assets of the Company to person or persons who
beneficially own, directly or indirectly, at least fifty percent (50%) or more
of the combined voting power of the outstanding voting securities of the Company
at the time of the sale.

                                      E-66
<PAGE>   20
                                    EXHIBIT B

                                TRANSACTION BONUS

1. (a) If a Change in Control of the Company, as defined in Exhibit A occurs,
Younger shall receive a Transaction Bonus calculated in accordance with the
provisions of this Exhibit B.

(b) The Company shall pay Younger the full dollar amount of the Transaction
Bonus calculated hereunder no later than thirty (30) days after the date of such
Change in Control, as defined in Exhibit A, has occurred; provided, however,
payment of the Transaction Bonus calculated under this Exhibit B shall be
subject to the reduction, if any, required under Section B of this Agreement.

2. The Transaction Bonus shall be calculated as follows:

(a) On the closing date of the Change in Control transaction (the "Transaction
Date"), the dollar amount of the negotiated purchase price per share(1) of the
Company's common stock, net of all transaction costs and expenses, (the
"Purchase Price") shall be multiplied by the total number of the Company's
outstanding shares of common stock, determined as of the Transaction Date;

(b) The dollar amount determined in Section 2(a) above shall be multiplied by a
percentage which shall be calculated pursuant to the following formula: [X -
Y]/10 x .25, where "X" equals the Purchase Price and "Y" equals $5.40;

(c) The dollar amount determined in Section 2(b) shall be multiplied by 40% to
arrive at the lump sum cash dollar amount of the Transaction Bonus payable to
Younger.

_______________

(1)  Based on current outstanding shares, which price shall be adjusted for
stock splits, stock dividends or other recapitalization or redemption, all as
determined in the sole discretion of the Board.

                                      E-67
<PAGE>   21
                                    EXHIBIT C

                     DEFINITION OF EQUITY CHANGE IN CONTROL

(a) For purposes of Section 7(d) and 8(c) under the Agreement, "Equity Change in
Control" shall mean any one of the following events:

     (i) Schedule 13D or 13G filing. A Schedule 13D or 13G is filed pursuant to
the Exchange Act indicating that any person or group (as such terms are defined
in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") has become the holder of more than twenty percent (20%) of the
outstanding Voting Shares. For purposes of calculating the percentage of Voting
Shares, such person or group shall be deemed the owner of any Voting Shares
which such person or group may acquire upon conversion of securities or upon the
exercise of options, warrants or rights.

     (ii) Certain Changes in Directors. As a result of or in connection with any
cash tender offer, merger, or other business combination, sale of assets or
contested election, or combination of the foregoing, the persons who were
directors of the Company just prior to such event shall cease within one year to
constitute a majority of the Board.

     (iii) Going Private.  The Company's stockholders approve a definitive
agreement providing for a transaction in which the Company will cease to be an
independent publicly-owned corporation.

     (iv) Certain Corporate Transactions. The stockholders of the Company
approve a definitive agreement (i) to merge or consolidate the Company with or
into another corporation in which the holders of Voting Shares immediately
before such merger or reorganization will not, immediately following such merger
or reorganization, hold as a group on a fully-diluted basis both the ability to
elect at least a majority of the directors of the surviving corporation and at
least a majority in value of the surviving corporation's outstanding equity
securities, or (ii) to sell or otherwise dispose of all or substantially all of
the assets of the Company.

(v) Tender or Exchange Offer. An Offer is made by a person or group (as such
terms are defined in Section 13(d)(3) of the Exchange Act) and such Offer has
resulted in such person or group holding an aggregate of twenty percent (20%) or
more of the outstanding Voting Shares. For purposes of this sub-section (v),
Voting Shares held by such person or group shall be calculated in accordance
with the last sentence of Section (a)(i) hereof.

                                      E-68

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]