Document:

Exhibit 10.1

 

AMENDMENT

NO. FOUR TO THE

ZEBRA TECHNOLOGIES CORPORATION

1997 STOCK OPTION PLAN

 

WHEREAS, Zebra

Technologies Corporation (the “Company”) has previously adopted to Zebra

Technologies Corporation 1997 Stock Option Plan (the “Plan”);

 

WHEREAS, pursuant to

Section 9.1 of the Plan, the Company’s Board of Directors may amend the Plan at

any time provided that no amendment shall impair the rights of any Participant

under any Option theretofore granted without the Participant’s consent; and

 

WHEREAS, the Company

desires to extend the exercise period for future Option grants following

Terminations of Employment due to death, Disability or Retirement.

 

NOW, THEREFORE, in

consideration of the foregoing and in accordance with its powers under the

Plan, the Company hereby amends the Plan as follows for Option grants on or

after October 17, 2002:

 

1.                                        Section 2.27 of

the Plan is amended and restated in its entirety to read as follows:

 

                                                 “2.27                  ‘RETIREMENT’ means the

Participant’s Termination of Employment after attaining either (i) age 55 with

the accrual of 10 years of service, or (ii) age 65.”

 

2.                                        Section 6.4 of

the Plan is amended and restated in its entirety to read as follows:

 

“6.4                          TERMINATION BY

REASON OF DEATH.  Unless otherwise

provided in an Agreement or determined by the Committee, if a Participant

incurs a Termination of Employment due to death, any unexpired and unexercised

Stock Option held by such Participant shall thereafter be fully exercisable for

a period of one year following the date of the appointment of a Representative

(or such other period or no period as the Committee may specify) or until

expiration of the Option Period, whichever period is shorter.”

 

3.                                       Section 6.5 of

the Plan is amended and restated in its entirety to read as follows:

 

“6.5                          TERMINATION BY

REASON OF DISABILITY.  Unless otherwise

provided in an Agreement or determined by the Committee, if a Participant

incurs a Termination of Employment due to a Disability, any unexpired and

unexercised Stock Option held by such Participant shall thereafter be fully

exercisable by the Participant for a period of one year (or such other period

or no period as the Committee may specify) immediately following the date of

such Termination of Employment or until the expiration of the Option Period,

whichever period is shorter, and the Participant’s death at any time following

such Termination of Employment due to Disability shall not affect the

foregoing.  In the event of Termination

of Employment by reason of Disability, if an Incentive Stock Option is

exercised after the expiration of the exercise periods that apply for purposes

of Section 422 of the Code, such Stock Option will thereafter be treated as a

Non-Qualified Stock Option.”

 

4.                                       Section 6.6 of

the Plan is amended and restated in its entirety as follows:

 

“6.6                          TERMINATION BY

REASON OF RETIREMENT.  Unless otherwise

provided in an Agreement or determined by the Committee, if a Participant

incurs a Termination of Employment due to Retirement, any Stock Option held by

such Participant shall thereupon terminate, except that such Stock Option, to

the extent then exercisable, may be exercised for the lesser of the one year

period commencing with the date of such Termination of Employment or until the

expiration of the Option Period.  The

death or Disability of a Participant after a Termination of Employment due to

Retirement shall not extend the time permitted to exercise an Option.  In the event of Termination of Employment

due to Retirement, if an Incentive Stock Option is exercised after the expiration

of the exercise periods that apply for purposes of Section 422 of the Code,

such Stock Option will thereafter be treated as a Non-Qualified Stock Option.

 

5.                                       Sections 6.7

and 6.8 of the Plan are redesignated Sections 6.8 and 6.9 of the Plan, respectively.

 

 

 

6.                                        The following

is added as Section 6.7 of the Plan:

 

“6.7                          OTHER

TERMINATION.  Unless otherwise provided

in an Agreement or determined by the Committee, if a Participant incurs a

Termination of Employment that is involuntary on the part of the Participant

(but is not due to death or Disability or with Cause), any Stock Option held by

such Participant shall thereupon terminate, except that such Stock Option, to

the extent then exercisable, may be exercised for the lesser of the ninety (90)

day period commencing with the date of such Termination of Employment or until

the expiration of the Option Period.  If

the Participant incurs a Termination of Employment which is voluntary on the

part of the Participant (and is not due to Retirement), the Option shall

terminate thirty (30) days after such Termination of Employment.  If the Participant’s Termination of

Employment is for Cause, the Option shall terminate immediately.  The death or Disability of a Participant

after a Termination of Employment otherwise provided herein shall not extend

the time permitted to exercise an Option.”

 

In all other respects, the

Plan remains in full force and effect.

 

Executed on this 17th day of

October, 2002.

 

 

	

   

  	

  ZEBRA TECHNOLOGIES CORPORATION

  
	

   

  
	

   

  	

  /s/ Edward L. Kaplan

  	

   

  
	

   

  	

  Edward L. Kaplan

  
	

   

  	

  Chairman of the Board of

  Directors

  
	

   

  
	

   

  	

  /s/ Gerhard Cless

  	

   

  
	

   

  	

  Gerhard Cless

  
	

   

  	

  Director

  
	

   

  
	

   

  	

  /s/ Christopher G. Knowles

  	

   

  
	

   

  	

  Christopher G. Knowles

  
	

   

  	

  Director

  
	

   

  
	

   

  	

  /s/ David P. Riley

  	

   

  
	

   

  	

  David P. Riley

  
	

   

  	

  Director

  
	

   

  
	

   

  	

  /s/ Michael A. Smith

  	

   

  
	

   

  	

  Michael A. Smith

  
	

   

  	

  Director

  
	

   

  
	

   

  	

  /s/ John W. Paxton, Sr.

  	

   

  
	

   

  	

  John W. Paxton, Sr.

  
	

   

  	

  DirectorExhibit 10.5

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement

(the “Agreement”), dated as of October 15, 2001, is entered into between

American Spectrum Realty, Inc., a Maryland corporation (the “Company”), and

William J. Carden (“Executive”).

 

Recitals

 

A.            The Company is a corporation intended to be qualified and

to operate as a real estate investment trust under the Internal Revenue Code of

1986, as amended.

 

B.            The Company wishes to employ Executive and Executive

wishes to be employed by the Company, on the terms and conditions set forth

below.

 

THEREFORE, the parties agree

as follows:

 

1.             Employment Duties.

 During the Term (as defined

in paragraph 2 below),   the Company

will initially employ Executive as its Chief Executive Officer, President and

Chairman of the Board.   Executive will

devote substantially all of his business time and attention to the performance

of his duties under this Agreement. 

Executive shall have the duties, rights and responsibilities normally

associated with his position with the Company, together with such other

reasonable duties relating to the operation of the business of the Company and

its affiliates as may be assigned to him from time to time by the  Board of Directors.  If the Company shall so request, Executive

shall act as an officer and/or director of any of the subsidiaries of the

Company as they may now exist or may be established by the Company in the

future without any compensation other than that provided for in

paragraph 3.

 

2.             Term.     The term of Executive’s employment

under this Agreement (the “Term”) will begin on the date of this Agreement and

will continue, subject to the termination provisions set forth in paragraph 5

below, until the third anniversary of the date hereof; provided that this

Agreement will automatically renew for additional one-year periods unless

either party gives written notice to the other not to extend the Term not less

than 90 days prior to the then next upcoming expiration date.

 

3.             Salary

and Bonus.

 

a.             Salary.

 During

each year of the Term, Executive will receive a salary at the annual rate of

$482,000 (the “Base Salary”).

 

b.             Bonus.  In

addition to the Base Salary, the Executive shall be entitled to an annual

incentive bonus payable within 120 days after the end of each year ended December

31 in an amount which shall be determined in the sole discretion of the Board

of Directors taking into account such factors concerning the performance of the

Company and Executive as shall be determined by the Board of Directors.  Per annum, the amount of the incentive bonus

shall be determined in the sole discretion of the Board of 

 

 

 

Directors and Executive shall not

be entitled to any incentive bonus unless and until such incentive bonus is

approved by the Board of Directors.

 

4.             Fringe Benefits. In addition to the other compensation

payable pursuant to this Agreement, during the Term:

 

a.             Standard

Benefits.  Executive will be entitled to receive such fringe

benefits and perquisites, including medical and life insurance, as are

generally made available from time to time to senior management employees and

Executives of the Company and to participate in any pension, profit-sharing,

stock option or similar plan or program established from time to time by the

Company for the benefit of its senior management employees.

 

b.             Vacation

and Sick Leave.  Executive will be

entitled to such periods of paid vacation (not less than three weeks per year)

and sick leave allowance each year that are consistent with the Company’s

vacation and sick leave policy for senior management.

 

c.             Business

Expenses.  The Company will pay or

reimburse Executive for all business-related expenses incurred by Executive in

the course of his performance of duties under this Agreement, subject to the

procedures established by the Company from time to time with respect to

incurrence, substantiation, reasonableness and approval.

 

d.             Stock

Options.  Executive shall be

entitled to participate in employee stock plans from time to time established

for the benefit of employees of the Company in accordance with the terms and

conditions of such plans. 

Simultaneously with the closing of the consolidation of the Company,

Executive shall receive pursuant to and subject to the Company’s Stock  Incentive Plan (the “Plan”), a grant of  25,000 stock options, which options shall be

25% exercisable on the date of grant and the balance of which become

exercisable subject to Executive’s continuing to be employed by the Company on

the applicable dates, in three nearly equal installments on the first, second and

third anniversary of the grant.  The

options shall be granted (i) 50% on the closing of the consolidation pursuant

to the Company’s Registration Statement on Form S-4 at an option exercise price

of $15.00 per share and (ii) 50% on the six- month anniversary of such Closing

at an option exercise price equal to the fair market value on the date of

grant.  Executive has previously

received a grant of 17,500 shares of restricted stock pursuant to the Plan

which shares shall be subject to repurchase by the Company on termination of

Executive’s employment for a price of $.01 per share, which repurchase option

shall lapse on each of the first, second, third and fourth anniversaries of the

date of grant.   Notwithstanding the

foregoing, stock options granted to Executive shall become exercisable and

repurchase restrictions on stock grants shall lapse in full upon (i) a Change

of Control of the Company (as defined herein) or (ii) Executive’s termination

of employment by Executive with Good Reason or by the Company without Cause,

and Executive shall have one (1) year from such termination, or remaining term

of the option, if earlier, to exercise such options.

 

2

 

5.             Termination of

Employment.

 

a.             Death and

Disability.  Executive’s employment

under this Agreement will terminate immediately upon his death and upon 30

days’ prior written notice given by the Company in the event Executive is

determined to be “permanently disabled” (as defined below).

 

b.             For Cause.  The Company may terminate Executive’s

employment under this Agreement for “Cause” (as defined below), upon providing

Executive 30 days’ prior written notice of termination, which notice will

describe in detail the basis of such termination and will become effective on

the 30th day after Executive’s receipt thereof unless Executive (i) cures the

alleged violation or other circumstance which was the basis of such termination

within such 30-day notice period or (ii) sends, within such 30–day notice

period, written notice to the Board disputing in good faith the existence of

Cause and requesting arbitration of such dispute pursuant to paragraph 9

below.  During the pendency of the

arbitration, Executive will continue to receive all compensation and benefits

to which he is entitled hereunder.  If

the Company is not successful in obtaining a determination by the arbitrators

that there was Cause for termination, the Company will pay Executive’s

reasonable expenses, including, without limitation, reasonable attorneys’ fees

and disbursements, in connection with such dispute resolution and Executive may

elect to terminate his employment and shall receive the payments and benefits

set forth in paragraph 6(b) as if his employment were terminated without Cause.

 

c.             For Good

Reason.  Executive may terminate his

employment under this Agreement for “Good Reason” (as defined below) upon

providing the Company 30 days’ prior written notice of termination, which

notice will detail the basis of such termination and will become effective on

the 30th day after the Company’s receipt thereof, unless the Company cures the

alleged violation or other circumstance which was the basis of such termination

within such 30-day notice period; provided that any termination pursuant to

(d)(iii)(C)) of the definition of Good Reason shall be made by notice given not

more than 60 days after the effective date of the Change of Control (as defined

below).

 

d.             Definitions.  For purposes of this Agreement:

 

(i)  Executive will be deemed “permanently

disabled” if he becomes unable to discharge his normal duties as contemplated

under this Agreement for more than six consecutive months as a result of

incapacity due to mental or physical illness as determined by a physician

acceptable to Executive and the Company and paid by the Company, whose

determination will be final and binding. 

If Executive and the Company are unable to agree on a physician,

Executive and the Company will each choose one physician who will mutually choose

the third physician, whose determination will be final and binding.

 

(ii)  “Cause” means either (A) a breach by

Executive of any material provisions of this Agreement, but only if, after

notice provided in subparagraph (b) above, Executive fails to cure such breach;

(B) action by Executive constituting willful misconduct or gross negligence in

connection with performing his duties hereunder; (C) an act of fraud, 

 

3

 

misappropriation

of funds or embezzlement by Executive in connection with his employment

hereunder; or (D) Executive is convicted of, pleads guilty to or confesses to

any felony.

 

(iii)  “Good Reason” means the occurrence of any of

the following, without the prior written consent of Executive: (A) a breach by

the Company of any of its material obligations under this Agreement, but only

if after expiration of the 30-day notice period provided in subparagraph (c)

above, the Company fails to cure such breach or (B) change of location of

Company’s offices where Executive is currently employed to a location more than

30 miles from such location or (C) a Change of Control.

 

(iv)  “Change of Control” means the occurrence of

:

 

(a)           An acquisition (other than directly

from the Company) of any voting securities of the Company (the “Voting Securities”)

by any “Person” (as the term person is used for purposes of Section 13(d)

or 14(d) of the Exchange Act) immediately after which such Person has

“Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the

Exchange Act) of  thirty percent (30%)

or more of the combined voting power of the Company’s then outstanding Voting

Securities; provided, however, in determining whether a Change in

Control has occurred, Voting Securities which are acquired in a “Non-Control

Acquisition” (as hereinafter defined) shall not constitute an acquisition which

would cause a Change in Control.  A

“Non-Control Acquisition” shall mean an acquisition by (a) an employee

benefit plan (or a trust forming a part thereof) maintained by (i) the

Company or (ii) any corporation or other Person of which a majority of its

voting power or its voting equity securities or equity interest is owned,

directly or indirectly, by the Company (for purposes of this definition, a

“Subsidiary”), (b) the Company or its Subsidiaries, (c) any corporation or

other Person the majority of its voting power or its voting equity securities

is owned, directly or indirectly, by William J. Carden or John N. Galardi or

(d) any Person in connection with a “Non-Control Transaction” (as hereinafter

defined).

 

(b)           The individuals who, as of the date

of this Agreement, are members of the Board (the “Incumbent Board”), cease for

any reason to constitute at least two-thirds of the members of the Board; provided,

however, that if the election, or nomination for election by the

Company’s common stockholders, of any new director was approved by a vote of at

least two-thirds of the Incumbent Board, such new director shall, for purposes

of this Plan, be considered as a member of the Incumbent Board; provided

further, however, that no individual shall be considered a member of

the Incumbent Board if such individual initially assumed office as a result of

either an actual or threatened “Election Contest” (as described in Rule 14a-11

promulgated under the Exchange Act) or other actual or threatened solicitation

of proxies or consents by or on behalf of a Person other than the Board (a

“Proxy Contest”) including by reason of any agreement intended to avoid or

settle any Election Contest or Proxy Contest; or

 

 

4

 

 

(c)           Approval by stockholders of the

Company of:

 

(i)            A merger, consolidation or

reorganization involving the Company, unless such merger, consolidation or

reorganization is a “Non-Control Transaction” a “Non-Control Transaction” shall

mean a merger, consolidation or reorganization of the Company where:

 

(A)          the stockholders of the Company,

immediately before such merger, consolidation or reorganization, own, directly

or indirectly immediately following such merger, consolidation or

reorganization, at least fifty percent (50%) of the combined voting power of

the outstanding voting securities of the corporation resulting from such merger

or consolidation or reorganization (the “Surviving Corporation”) in substantially

the same proportion as their ownership of the Voting Securities immediately

before such merger, consolidation or reorganization,

 

(B)           the individuals who were members of

the Incumbent Board immediately prior to the execution of the agreement providing

for such merger, consolidation or reorganization constitute at least two-thirds

of the members of the board of directors of the Surviving Corporation, or a

corporation beneficially directly or indirectly owning a majority of the Voting

Securities of the Surviving Corporation, and

 

(C)           no Person other than (i) the Company,

(ii) any Subsidiary, (iii) any employee benefit plan (or any trust forming a

part thereof) maintained by the Company, the Surviving Corporation, or any

Subsidiary, or (iv) any Person who, immediately prior to such merger,

consolidation or reorganization had Beneficial Ownership of thirty percent

(30%) or more of the then outstanding Voting Securities has Beneficial

Ownership of  thirty percent (30%) or

more of the combined voting power of the Surviving Corporation’s then

outstanding voting securities.

 

(ii)           A complete liquidation or dissolution

of the Company; or

 

(iii)          The sale or other disposition of all

or substantially all of the assets of the Company to any Person (other than a transfer

to a Subsidiary).

 

Notwithstanding the

foregoing, a Change in Control shall not be deemed to occur solely because any

Person (the “Subject Person”) acquired Beneficial Ownership of more than the

permitted amount of the then outstanding Voting Securities as a result of the

acquisition of Voting Securities by the Company 

 

5

 

which, by reducing the number of

Voting Securities outstanding, increases the proportional number of shares

Beneficially Owned by the Subject Person, provided that if a Change in Control

would occur (but for the operation of this sentence) as a result of the

acquisition of Voting Securities by the Company, and after such share

acquisition by the Company, the Subject Person becomes the Beneficial Owner of

any additional Voting Securities which increases the percentage of the then

outstanding Voting Securities Beneficially Owned by the Subject Person, then a

Change in Control shall occur.  Such

Shares are listed or admitted to trading, or, if such Shares are not so listed

or admitted to trading, the arithmetic mean of the per Share closing bid price

and per Share closing asked price on such date as quoted on the National

Association of Securities Dealers Automated Quotation System or such other

market in which such prices are regularly quoted, or, if there have been no

published bids or asked quotations with respect to Shares on such date, the

Fair Market Value shall be the value established by the Board in good faith

and, in the case of an Incentive Stock Option, in accordance with

Section 422 of the Code.

 

6.             Benefits

upon Termination.

 

a.             Termination

with Cause or Resignation.  Upon

termination of Executive’s employment by the Company for Cause or a voluntary

resignation by Executive (other than for Good Reason pursuant to paragraph 5(c)

above) during the Term, the Company will remain obligated to pay Executive only

the unpaid portion of his Base Salary and benefits to the extent accrued

through the effective date of termination. 

Any amount due under this subparagraph will be payable within 30 days

after the date of termination.  In

addition to whatever other rights or remedies the Company may have at law or in

equity, all stock options held by Executive, whether vested or unvested as of

the date of termination, shall immediately expire on the date of termination

and all unvested stock-based grants shall immediately expire.

 

b.             Termination

without Cause or for Good Reason. 

The Company shall also have the right to terminate Executive’s

employment without Cause.  Upon

termination of Executive’s employment (x) by the Company without Cause or (y)

by Executive for Good Reason, Executive will be entitled to the benefits

provided below, subject to signing by Executive of a general release of claims

in a form satisfactory to the Company:

 

(i)  the Company will pay as severance pay to

Executive, in monthly installments over a twelve-month period, an amount (the

“Severance Amount”) equal to two times Executive’s Base Salary and bonus for

the immediately preceding calendar year or current year if the termination is

in the first calendar year of employment (which shall be annualized if the

applicable calendar year is less than a full year) unless the termination is

covered by subsection (ii) below;

 

(ii)  the Company will pay as severance pay to

Executive in a lump sum paid within 10 days of Executive’s notice an amount

equal to 2.99 times Executive’s base salary and bonus for the immediately

preceding calendar year or current year if the termination is in the first

calendar year of employment (which shall be annualized if the applicable

calendar 

 

6

 

year

is less than a full calendar year) if the termination is pursuant to

(d)(iii)(C)) of the definition of Good Reason; and

 

(iii)  subject to Executive making a valid election

to continue medical coverage under the Company’s group health plan, the Company

will pay Executive’s COBRA premium for the shorter of (x) 12 months following

Executive’s termination of employment or (y) the end of the COBRA continuation

period.

 

c.             Termination

Upon Death or Permanent Disability. 

Upon termination of Executive’s employment upon Executive’s death or

permanent disability, Executive or Executive’s estate will be entitled to the

benefits provided below, subject to signing by Executive or Executive’s estate

of a general release of claims in a form satisfactory to the Company:

 

(i)   the Company will pay as severance pay to

Executive or Executive’s estate, in monthly installments over a twelve-month

period, an amount equal to the Executive’s Base Salary as in effect on the date

of termination of employment; and

 

(ii)  subject to Executive making a valid election

to continue medical coverage under the Company’s group health plan, the Company

will pay Executive’s COBRA premium for the shorter of (x) 12 months following

Executive’s termination of employment or (y) the end of the COBRA continuation

period.

 

d.             No

Mitigation.  Executive will not be

required to mitigate the amount of any payment provided for in this paragraph 6

by seeking other employment or otherwise, nor will the amount of any payment or

benefit provided for in this paragraph 6 be reduced by any compensation earned

by him as the result of employment by another employer or by retirement

benefits after the date of termination, or otherwise.

 

e.             Expiration

of this Agreement.  In the event the

Term of this Agreement expires without having otherwise been previously

terminated pursuant to paragraph 5 above or by the Company without Cause,

Executive will not be entitled to any severance compensation whatsoever under

this paragraph 6.

 

7.             No

Solicitation; Confidentiality; Competition; Cooperation.

 

a.              During the Restricted Period (defined below), neither

Executive nor any Executive-Controlled Person (defined below) will, without the

prior written consent of the Board, directly or indirectly solicit for

employment, employ in any capacity or make an unsolicited recommendation to any

other person that it employ or solicit for employment any person who is or was,

at any time during the Restricted Period, an officer, executive or employee of

the Company or of any of its affiliates. 

As used in this Agreement, the term “Executive-Controlled Person” shall

mean any company, partnership, firm or other entity as to which 

 

7

 

Executive possess, directly

or indirectly, the power to direct or cause the direction of the management and

policies of such entity, whether through the ownership of voting securities, by

contract or otherwise.

 

b.             Executive acknowledges that, through his status as Chief

Executive Officer, President and Chairman of the Board of the Company, he has,

and will have, possession of important, confidential information and knowledge

as to the business of the Company and its affiliates, including, but not

limited to, knowledge of marketing and operating strategies, acquisition,

leasing and other agreements, financial results and projections, future plans,

the provisions of other important contracts entered into by the Company and its

affiliates, possible acquisitions and similar information.  Executive agrees that all such knowledge and

information constitutes a vital part of the business of the Company and its

affiliates and is by its nature trade secrets and confidential information

proprietary to the Company and its affiliates (collectively, “Confidential

Information”).  Executive agrees that he

shall not, so long as the Company remains in existence, divulge, communicate,

furnish or make accessible (whether orally or in writing or in books, articles

or any other medium) to any individual, firm, partnership or corporation, any

knowledge or information with respect to Confidential Information directly or

indirectly useful in any aspect of the business of the Company or any of its

affiliates.

 

c.             All memoranda, notes, notebooks, lists, records and

other documents or papers (and all copies thereof), including such items stored

in computer memories, portable computers and the like, on microfiche, disk or

by any other means, made or compiled by or on behalf of Executive or made

available to him relating to the Company are and shall be the Company’s

property and shall be delivered to the Company promptly upon the termination of

Executive’s employment with the Company or at any other time on request and

such information shall be held confidential by Executive after the termination

of his employment with the Company.

 

d.             During the Non-Competition Period, neither Executive nor

any Executive-Controlled Person will (i) render any services, directly or

indirectly, as an employee, officer, consultant or in any other capacity, to

any individual, firm, corporation or partnership engaged in the acquisition,

development, renovation or ownership of any office, office/warehouse,

industrial, warehouse or apartment properties located in the Restricted Area,

and (ii) engage in any active or passive investment in or reasonably relating

to the acquisition, development, renovation, or ownership of office,

office/warehouse, industrial, warehouse or apartment properties located in the

Restricted Area (such activities described in clauses (i) and (ii) being herein

called the “Company Business”).  During

the Non-Competition Period, Executive shall not, without the prior written

consent of the Company, hold an equity interest in any firm, partnership or

corporation which competes with Company Business, except that beneficial

ownership by Executive (including ownership by any one or more members of his

immediate family and any entity under his direct or indirect control) of less

than five (5%) percent of the outstanding shares of capital stock of any

corporation which may be engaged in any of the same lines of business as

Company Business, if such stock is listed on a national securities exchange or

publicly traded in the over-the-counter market, shall not constitute a breach

of the covenants contained in this paragraph 7.

 

8

 

e.             (i) As used in this Agreement, “Restricted Period” shall

mean the twelve (12) months following Executive’s termination of employment for

any reason.

 

(ii) As used in this Agreement,

“Non-Competition Period”  shall mean the

twelve months following Executive’s termination of employment, unless the

termination is (A) by the Company without Cause (other than at the expiration

of the Term), or (B) by the Executive for Good Reason.

 

(iii) As used in this Agreement “Restricted

Area” shall mean any location within 50 miles of any apartment, office,

office/warehouse, industrial or warehouse property owned by the Company.

 

f.              Following Executive’s termination of employment,

Executive will cooperate with the Company, its executives, counsel and other

professional advisors (i) to the extent reasonably possible with respect to the

consummation of matters that were in progress at the time of Executive’s

termination of employment and (ii) with respect to any litigation or regulatory

matters arising out of or related to the business, operations, or personnel of

the Company (including participation in depositions, hearings and trials, as

and if deemed necessary or appropriate by the Company, execution of appropriate

affidavits and participation in interviews with Company counsel).  The Company shall compensate Executive on a

reasonable basis for any services provided by Executive pursuant to this

paragraph 7(f).

 

g.             The provisions contained in this paragraph 7 as to

the time periods, scope of activities, persons or entities affected, and

territories restricted shall be deemed divisible so that, if any provision

contained in this paragraph 7 is determined to be invalid or unenforceable,

such provisions shall be deemed modified so as to be valid and enforceable to

the full extent lawfully permitted.

 

h.             Executive agrees that the provisions of this paragraph 7

are reasonable and necessary for the protection of the Company and that they

may not be adequately enforced by an action for damages and that, in the event

of a breach thereof by Executive or any Executive-Controlled Person, the

Company shall be entitled to apply for and obtain injunctive relief in any

court of competent jurisdiction to restrain the breach or threatened breach of

such violation or otherwise to enforce specifically such provisions against such

violation, without the necessity of the posting of any bond by the

Company.  Executive further covenants

and agrees that if he shall violate any of his covenants under this

paragraph 7, the Company shall not be obligated to make any payments or

provide any benefits provided in paragraph 6 and the Company shall be entitled

to recover any amounts previously paid pursuant to paragraph 6.  Such a remedy shall, however, not be

exclusive and shall be in addition to any injunctive relief or other legal or

equitable remedy to which the Company is or may be entitled.  Accordingly, Executive agrees that he shall

reimburse the Company for any reasonable attorneys’ fees and expenses that the

Company might incur in enforcing this paragraph 7 if it is judicially determined

that Executive has breached this paragraph 7.

 

8.             Indemnification.  To the full extent permitted by applicable

law, Executive shall be indemnified and held harmless by the Company against

any and all judgments, penalties, fines, amounts paid

 

9

 

in settlement, and other reasonable expenses (including, without

limitation, reasonable attorneys’ fees and disbursements) actually incurred by

Executive in connection with any threatened, pending or completed action, suit

or proceeding (whether civil, criminal, administrative, investigative or other)

for any action or omission in his capacity as a director, officer or employee

of the Company.  Indemnification under

this paragraph 8 shall be in addition to, and not in substitution of, any

other indemnification by the Company of its officers and directors.

 

9.             Arbitration.  The parties hereto will endeavor to resolve in good faith any

controversy, disagreement or claim arising between them, whether as to the interpretation,

performance or operation of this Agreement or any rights or obligations

hereunder.  If they are unable to do so,

any such controversy, disagreement or claim will be submitted to binding

arbitration, for final resolution without appeal, by either party giving

written notice to the other of the existence of a dispute which it desires to

have arbitrated.  The arbitration will

be conducted in New York, New York by a single neutral arbitrator and will be

held in accordance with the rules of the American Arbitration Association.  The decision and award of the arbitrators

must be in writing and will be final and binding upon the parties hereto.  Judgment upon the award may be entered in

any court having jurisdiction thereof, or application may be made to such court

for a judicial acceptance of the award and an order of enforcement, as the case

may be.  The expenses of arbitration

will be borne in accordance with the determination of the arbitrator with

respect thereto, except as otherwise specified in paragraph 5(b) above.  Pending a decision by the arbitrator with

respect to the dispute or difference undergoing arbitration, all other

obligations of the parties will continue as stipulated herein, and all monies not

directly involved in such dispute or difference will be paid when due.

 

10.           Miscellaneous.

 

a.             Executive represents and warrants

that he is not a party to any agreement, contract or understanding, whether

employment or otherwise, which would restrict or prohibit him from undertaking

or performing employment in accordance with the terms and conditions of this

Agreement.

 

b.             The provisions of this Agreement

are severable and if any one or more provisions may be determined to be illegal

or otherwise unenforceable, in whole or in part, the remaining provisions and

any partially unenforceable provision to the extent enforceable in any

jurisdiction will remain binding and enforceable.

 

c.             The rights and obligations of the

Company under this Agreement inure to the benefit of, and will be binding on,

the Company and its successors and permitted assigns, and the rights and

obligations (other than obligations to perform services) of Executive under

this Agreement will inure to the benefit of, and will be binding upon,

Executive and his heirs, personal representatives and permitted assigns; provided,

however, that Executive shall not be entitled to assign or delegate any of his

rights and obligations under this Agreement without the prior written consent

of the Company; provided, further, that the Company shall not have the

right to assign or delegate any of its rights or obligations under this

Agreement except to a corporation, partnership or other business entity that

is, directly or indirectly, controlled by the Company.

 

10

 

d.             Any notice to be given under this

Agreement will be personally delivered in writing or will 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, will be addressed to its principal place of business, attention:

Secretary, and if mailed to Executive, will be addressed to him at his home

address last known on the records of the Company or at such other address or

addresses as either the Company or Executive may hereafter designate in writing

to the other.

 

e.             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 thereafter from enforcing each and

every other provision of this Agreement. 

The rights granted the parties herein are cumulative and the waiver of

any single remedy will not constitute a waiver of such party’s right to assert

all other legal remedies available to it under the circumstances.

 

f.              THIS

AGREEMENT WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE

OF TEXAS, WITHOUT REGARD TO CONFLICTS OF LAWS.

 

g.             Captions and paragraph headings

used herein are for convenience and are not a part of this Agreement and will

not be used in construing it.

 

IN

WITNESS WHEREOF, the parties have executed this Agreement on the day and year

first set forth above.

 

 

	

   

  	

  AMERICAN

  SPECTRUM REALTY, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   /s/ Paul E. Perkins

  
	

   

  	

   

  	

  Paul

  E. Perkins, Senior Vice President

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  /s/ William J. Carden

  
	

   

  	

  William J. Carden

  

 

 

 

11

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