Document:

exv10w1

 

EXHIBIT 10.1

Big Stone II Power Plant

Amendment No. 5 to

Participation Agreement

By and Among

CENTRAL MINNESOTA MUNICIPAL POWER AGENCY,

GREAT RIVER ENERGY,

HEARTLAND CONSUMERS POWER DISTRICT,

MONTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU

RESOURCES GROUP, INC.,

OTTER TAIL CORPORATION dba OTTER TAIL POWER COMPANY,

SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY, AND

WESTERN MINNESOTA MUNICIPAL POWER AGENCY

As

Owners

Effective

September 1, 2007

Amendment No. 5 to Participation Agreement

Effective: September 1, 2007

Vote Date: On September 21, 2007

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Amendment No. 5 to Participation Agreement

     THIS AMENDMENT NO. 5 TO PARTICIPATION AGREEMENT (this “Amendment”) is made as of
September 1, 2007, by and among Central Minnesota Municipal Power Agency, an agency incorporated
under the laws of the State of Minnesota (“CMMPA”), Great River Energy, a cooperative corporation
incorporated under the laws of the State of Minnesota (“GRE”), Heartland Consumers Power District,
a consumers power district formed and organized under the South Dakota Consumers Power District Law
(Chapter 49-35 of the South Dakota Codified Laws) (“Heartland”), Montana-Dakota Utilities Co., a
Division of MDU Resources Group, Inc., a corporation incorporated under the laws of the State of
Delaware (“Montana-Dakota”), Otter Tail Corporation, a corporation incorporated under the laws of
the State of Minnesota, doing business as Otter Tail Power Company (“Otter Tail”), Southern
Minnesota Municipal Power Agency, a municipal corporation and political subdivision of the State of
Minnesota (“SMMPA”), and Western Minnesota Municipal Power Agency, a municipal corporation and
political subdivision of the State of Minnesota (“WMMPA”) (each individually a “Party” and,
collectively, the “Parties”).

RECITALS

     WHEREAS, the Parties have entered into a Participation Agreement, dated June 30, 2005 (the
“Agreement”), and an Amendment No. 1 to the Participation Agreement dated effective as of June 1,
2006 (the “Amendment No. 1”), an Amendment No. 2 to the Participation Agreement dated August 1,
2006 (the “Amendment No. 2”), Amendment No. 3 to the Participation Agreement dated effective as of
September 1, 2006 (the “Amendment No. 3”), and an Amendment No. 4 to the Participation Agreement
dated effective June 8, 2007 (individually, the “Amendment No. 4” and collectively with the
Agreement and the Amendment No. 1, the Amendment No. 2, and the Amendment No. 3, the “Amended
Agreement”), to provide for their ownership as tenants in common of BSP II and set forth certain
responsibilities and mechanisms for the design, construction, ownership, operation, maintenance and
repair of BSP II; and

     WHEREAS, the Parties desire to amend the Amended Agreement as and to the extent provided in
this Amendment.

     NOW, THEREFORE, in consideration of the agreements and covenants set forth herein, and other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound by this Amendment, the Parties covenant and agree as follows:

AGREEMENTS

     1.01 Defined Terms. Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed to such terms in the Agreement.

Amendment No. 5 to Participation Agreement

Effective: September 1, 2007

Vote Date: On September 21, 2007

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     1.02 Amendments. The Amended Agreement is hereby amended as follows:

     (a) In Section 3.05(b) of the Amended Agreement, the words “not later than September 12, 2007”
are hereby deleted and replaced with “on September 21, 2007”.

     1.03 Continuing Effect; Ratification. Except as expressly amended herein, all other terms,
covenants and conditions contained in the Amended Agreement shall continue to remain unchanged and
in full force and effect and are hereby ratified and confirmed.

       1.04 Governing Law. This Amendment shall be interpreted and enforced in accordance
with the Laws of the State of South Dakota, notwithstanding any conflict of law provision to the
contrary.

     1.05 Captions. All titles, subject headings, section titles and similar items are provided
for the purpose of reference and convenience and are not intended to affect the meaning of the
content or scope of this Amendment.

     1.06 Counterparts. This Amendment may be executed in any number of counterparts, each of
which shall be deemed to be an original and all of which together shall constitute but one and the
same agreement. Counterpart signatures may be delivered by facsimile or electronic transmission,
each of which shall have the same force and effect as an original signed copy.

     1.07 Authority. Each signatory to this Amendment represents that he/she has the authority to
execute and deliver this Amendment on behalf of the party set forth above his/her signature.

[Signature pages follow.

The remainder of this page is intentionally blank.]

Amendment No. 5 to Participation Agreement

Effective: September 1, 2007

Vote Date: On September 21, 2007

3

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

OWNERS:

CENTRAL MINNESOTA MUNICIPAL

POWER AGENCY

	 	 	 	 	 
	 	 
	By   /s/  Bob Elston
 	 
	Name:  	Bob Elston                                                                       	 
	Title:  	President 	 
	 

[Signatures continued on next page.]

Amendment No. 5 to Participation Agreement

Effective: September 1, 2007

Vote Date: On September 21, 2007

4

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

OWNERS:

HEARTLAND CONSUMERS POWER

DISTRICT

	 	 	 	 	 
	 	 
	                       By             /s/  Mike McDowell
 	 
	Name:  	Mike McDowell 	 
	Title:  	General Manager 	 
	 

[Signatures continued on next page.]

Amendment No. 5 to Participation Agreement

Effective: September 1, 2007

Vote Date: On September 21, 2007

5

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

OWNERS:

SOUTHERN MINNESOTA MUNICIPAL

POWER AGENCY

	 	 	 	 	 
	 	 
	               By                     /s/  Raymond A. Hayward
 	 
	Name:  	Raymond A. Hayward 	 
	Title:  	Executive Director & CEO 	 
	 

[Signatures continued on next page.]

Amendment No. 5 to Participation Agreement

Effective: September 1, 2007

Vote Date: On September 21, 2007

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     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

OWNERS:

WESTERN MINNESOTA MUNICIPAL

POWER AGENCY

	 	 	 	 	 
	 	 
	              By            /s/  Thomas J. Heller
 	 
	Name:  	Thomas J. Heller 	 
	Title:  	Asst. Secretary & Asst. Treasurer 	 
	 

[Signatures continued on next page.]

Amendment No. 5 to Participation Agreement

Effective: September 1, 2007

Vote Date: On September 21, 2007

7

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

OWNERS:

GREAT RIVER ENERGY

	 	 	 	 	 
	 	 
	                       By             /s/  David Saggau
 	 
	Name:  	David Saggau 	 
	Title:  	President & CEO 	 
	 

[Signatures continued on next page.]

Amendment No. 5 to Participation Agreement

Effective: September 1, 2007

Vote Date: On September 21, 2007

8

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

OWNERS:

MONTANA-DAKOTA UTILITIES CO.,

a Division of MDU Resources Group, Inc.

	 	 	 	 	 
	 	 
	                       By             /s/  Bruce Imsdahl
 	 
	Name:  	Bruce Imsdahl 	 
	Title:  	President & CEO 	 
	 

[Signatures continued on next page.]

Amendment No. 5 to Participation Agreement

Effective: September 1, 2007

Vote Date: On September 21, 2007

9

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

OWNERS:

OTTER TAIL CORPORATION

dba Otter Tail Power Company

	 	 	 	 	 
	 	 
	                      By             /s/  Chuck MacFarlane
 	 
	Name:  	Chuck MacFarlane 	 
	Title:  	President 	 
	 

Amendment No. 5 to Participation Agreement

Effective: September 1, 2007

Vote Date: On September 21, 2007

10exv10w1

 

EXHIBIT 10.1

September 10, 2007

Mr. Robert Cutlip

c/o First Industrial Realty Trust, Inc.

Five Concourse Parkway, Suite 2020

Atlanta, GA 30328

     Re:     Employment

Dear Bob:

     The purpose of this letter is to memorialize the terms of your employment with First
Industrial Realty Trust, Inc., and its affiliates (“FR”), in the newly created position of
Executive Vice President — North America (“EVP-NA”), or in such other comparable or other capacity
as mutually agreed between you and FR, on the terms set forth below.

	1.	 	Position and Responsibilities: As EVP-NA you will have responsibility for all of
North America to provide industry solutions to FR’s core customer groups. Initially, your
direct reports will be FR’s managing directors in North America and our National Director
Integrated Industrial Solutions. As EVP-NA, you will serve as a participant on FR’s
Management Committee. In your position you will also monitor and take actions appropriate to
insure that FR maintains its competitive advantages. You agree to devote your best efforts
and full business time (excluding any period of disability, vacation or similar permitted
leaves), energy, skills and attention to FR’s business and affairs, on an exclusive basis,
unless otherwise approved by the Chief Executive Officer of FR. You shall report to the Chief
Executive Officer of FR and shall have such duties and authority as are defined, modified and
delegated from time to time by the CEO.

	2.	 	Term: The term of this Agreement will be five (5) years, commencing September 10,
2007 (the “Effective Date”), and terminating September 10, 2012, unless extended by mutual
written agreement. In the event of a Change of Control, as defined in Paragraph 4(c) below,
which occurs during the Agreement term, the term will automatically extend for twelve (12)
months from such change and then end.

	3.	 	Annual Compensation: Your annual compensation package shall consist of a number of
components, as follows:

	 	(a)	 	Base Salary: You will be paid a Base Salary of $275,000 per annum,
which Base Salary shall be subject to annual review and adjustment by the Compensation
Committee of the Board of Directors, but which shall not be reduced below that figure.

 

 

	 	(b)	 	Incentive Compensation: Your annual incentive will be paid under a
customized incentive compensation plan (“Incentive Compensation”), as follows:

	 	(i)	 	Managing Director Override: You will be paid a 35%
override on the cumulative override payments received under their respective
incentive compensation plans by the managing directors who report directly to
you.
	 
	 	(ii)	 	Subjective Incentive Compensation: You will be paid
an additional subjective incentive compensation with maximum annual awards of
$75,000 for achievement of organization development goals, $150,000 for
achievement of corporate real estate goals and $75,000 for special projects
assigned at the Chief Executive Officer’s discretion.
	 
	 	(iii)	 	Payment of Incentive Compensation: All Incentive
Compensation earned for any year shall be paid partly in cash and partly in
restricted stock of FR, on the basis of 60% cash and 40% restricted stock.
The cash portion of the Managing Director Override will normally be paid on a
quarterly basis 45 days following the end of each quarter. The remainder of
the Incentive Compensation will be paid on an annual basis within 45 days
following the end of each calendar year. The restricted stock will vest over
a three (3) year period following the date of issuance, on a level pro rata
basis of 33 1/3% of the end of each of years one (1), two (2) and three (3)
following issuance. Any payment of Incentive Compensation pursuant to this
Section 3 will require your continued employment through the payment date,
which will be no later than 2 1/2 months following the close of the annual
performance period. Termination of employment, for any reason other than
under Paragraphs 4(a) (termination without cause)—but only in the event of
termination by FR, 4(c) (change of control), 4(d) (death or disability) and
4(e) (change in responsibility), prior to the payment date will result in the
forfeiture of any right to payment of the Incentive Compensation amount.
	 
	 	(iv)	 	Benefits, Insurance and Automobile Allowance: You
will receive the standard benefits and insurance package provided to all other
senior officers of FR. You will also receive an automobile allowance of $800
per month.
	 
	 	(v)	 	Vacation: You will be entitled to four (4) weeks of
paid vacation per year, which will not carry over to subsequent years or be
redeemable for cash except as provided by Company policy generally applicable
to employees.

	4.	 	Termination:

	 	(a)	 	No Cause: Either you or FR will have the right to terminate this
Agreement at any time, for no cause, upon thirty (30) days’ prior written notice to

 

 

	 	 	 	the other party. In the event of such termination by FR, you will be paid a cash
“Severance Payment” equal to (i) your base salary and vacation pay earned and
unpaid through the date of termination, plus (ii) two (2) times your
then-applicable annual base salary, plus (iii) 70% of the average of your cash
bonus for the two years prior to the year in which termination occurs. Such
Severance Payment shall constitute the full extent of FR’s obligation to you in
such circumstance (without limitation of any rights that you may have under any
equity incentive award (e.g. under a restricted stock agreement), any tax-qualified
retirement plan or COBRA).
	 
	 	(b)	 	Cause: FR will have the right to terminate your employment for cause
at any time, on the lesser of thirty (30) days’ notice or such lesser notice as may be
necessary in the event of an emergency created by your misconduct. Cause shall mean
your having been found (i) guilty of criminal activity; (ii) to have engaged in
substance abuse; (iii) to have committed acts of fraud or dishonesty, (iv) to have
engaged in willful or grossly negligent misconduct; or (v) to have engaged in a
recurring pattern of material and willful dereliction of your material
responsibilities, where such recurring failure has a material adverse effect upon the
business of FR, as reasonably determined by the CEO, in the CEO’s good faith
determination.. If FR intends to terminate you for cause, it shall notify you of the
basis for such intended action, and provide you with an opportunity to meet with the
CEO and others designated by the CEO (if any) to address the validity of the relevant
factual accusations, but FR shall retain the right to make a good faith determination
of the existence of the grounds for a cause-based termination.
	 
	 	(c)	 	Change of Control: In the event of a Change of Control of FR (as
such is defined in FR’s 2001 Stock Incentive Plan or in any subsequently adopted
equity incentive plan) and you are terminated without cause or your position is
substantially adversely modified, then you shall have the right to terminate your
employment within twelve (12) months of the effective date of such Change of Control,
and to receive the Severance Payment described in Paragraph 4(a) above.
	 
	 	(d)	 	Death or Disability: In the event of termination of your employment
due to your death or permanent disability, you or your family will receive a Severance
Payment equal to fifty percent (50%) of the Severance Payment described in Paragraph
4(a) above.
	 
	 	(e)	 	Change in Responsibility: If there is a substantial reduction in your
level of your responsibility or a change in the organization of FR so that you cease
to report directly to the CEO, you may elect to treat the reduction or change as a
termination by FR for no cause under Paragraph 4(a); provided, however, that you must
first give FR notice of the events giving rise to such right and allow FR a reasonable
period to cure such circumstances. The acquiescence to such a reduction of
responsibility or change in reporting obligations for a period of time up to six
months shall not be deemed to be a waiver of your right to claim the reduction or
change as a termination by

 

 

	 	 	 	FR for no cause under Paragraph 4(a); provided, however, that such right may be
waived at any time in writing. For purposes of this subsection, a reduction in
responsibilities due your disability or in response your behavior which can
constitute “cause” under Paragraph 4(b), will not be treated as a termination for
no cause under Paragraph 4(a).

	5.	 	Exclusivity, Non-Compete and Confidentiality: During the term of this Agreement, you
will devote all of your professional time and attention to the business of FR, unless
otherwise approved by the CEO of FR, and, with respect in investments in commercial real
estate, will specifically comply with FR’s Investment Conflicts Policy. For a period of one
(1) year following a termination of your employment, by you or FR, for any reason other than
by FR for Cause, you agree not to directly or indirectly, as a principal, agent, consultant,
employee, broker, investor, or otherwise, solicit or attempt to exploit, for your benefit or
that of others, any “FR North American Business Opportunity” that shall have been originated
within the FR’s organization at the time of your termination, as evidenced in writing in FR’s
records (inclusive of e-mails), or by expenditures of pursuit costs by FR. For purposes
hereof, a North American Business Opportunity shall be any proposed transaction involving the
rendition of services by FR or any of FR’s affiliates, or the purchase, development, sale,
lease or other disposition of, the financing or other capitalization of any project or
property (collectively “Opportunities”), that relates to projects located in any North
American market in which FR does business. In addition, you will not employ, solicit
employment of, or engage in employment-related communication with any employee of FR who
reported directly to you or to whom you reported during this one (1) year period. In
addition, you will, for an indefinite period of time, maintain the confidentiality of
proprietary information, concerning FR or its lenders, tenants, sellers, buyers or investors
made available to you by FR during your employment.

	6.	 	Entire Agreement; Modifications. This Agreement constitutes the entire agreement
between the parties and their affiliates respecting the subject matter hereof, and supersedes
all prior negotiations, undertakings, agreements and arrangements with respect thereto,
whether written or oral, including without limitation, the Separation Agreement dated March
13, 2006 between you and First Industrial, LP. Except as otherwise explicitly provided
herein, this Agreement may not be amended or modified except by written agreement signed by
you and FR.

	7.	 	Mandatory Arbitration: Any dispute or controversy hereunder shall be committed to
binding arbitration under the AAA rules, by a single arbitrator selected by the parties
through the process of single elimination of a proposed roster of eleven (11) arbitrators
submitted by the AAA. Such arbitration shall be conducted under a “baseball arbitration”
format, pursuant to which the arbitrator shall be required to adopt the position of one of the
parties, and not any compromise position, and under which the non-prevailing party shall bear
all costs of the arbitration, including the prevailing party’s legal fees. The order of such
arbitrator shall be final and binding, and may be enforced by a Court of competent
jurisdiction. Nothing herein contained shall preclude either party from seeking equitable or
injunctive relief from a court of competent jurisdiction in order to prevent, terminate or
reduce the likelihood of the infliction of irreparable harm on the petitioning party.

 

 

	8.	 	IRC Code Section 409A: Notwithstanding any anything contained herein to the
contrary, if at the time of your termination of employment you are a “specified employee” as
defined in Internal Revenue Code Section 409A, and the regulations and guidance thereunder in
effect at the time of such termination, then, and only as and to the extent required by such
provisions, the date of payment of any payments otherwise provided to you shall be delayed for
a period of up to six (6) months following the date of termination.

     I am extremely enthusiastic about the prospect of working with you over many years to come, to
our mutual benefit.

	 	 	 	 	 
	 	Best regards,

 	 
	 	/s/ Michael W. Brennan
 	 
	 	Michael W. Brennan 	 
	 	President, First Industrial Realty Trust, Inc. 	 
	 

	 	 	 	 	 
	Agreed, September 10, 2007

 	 	 
	/s/ Robert Cutlip
 	 	 
	Robert Cutlip

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