Document:

Exhibit 10.2

 

 

 

THIS DEBENTURE HAS BEEN ISSUED WITH “ORIGINAL
ISSUE DISCOUNT” FOR U.S. FEDERAL INCOME TAX PURPOSES. THE ISSUER WILL MAKE AVAILABLE TO ANY HOLDER OF THIS DEBENTURE: (1) THE ISSUE
PRICE AND ISSUE DATE OF THE DEBENTURE, (2) THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THE DEBENTURE, (3) THE YIELD TO MATURITY OF THE DEBENTURE,
AND (4) ANY OTHER INFORMATION REQUIRED TO BE MADE AVAILABLE BY U.S. TREASURY REGULATIONS UPON RECEIVING A WRITTEN REQUEST FOR SUCH INFORMATION
AT THE FOLLOWING ADDRESS: 990 BISCAYNE BLVD., SUITE 503, MIAMI, FL 33132.

 

THIS DEBENTURE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, APPLICABLE STATE SECURITIES LAWS, OR APPLICABLE LAWS OF ANY FOREIGN JURISDICTION. THIS DEBENTURE HAS
BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED, RENOUNCED
OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
LAWS AND IN THE ABSENCE OF COMPLIANCE WITH APPLICABLE LAWS OF ANY FOREIGN JURISDICTION, OR THE AVAILABILITY OF AN EXEMPTION FROM THE REGISTRATION
PROVISIONS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS.

 

SMART FOR LIFE, INC.

ORIGINAL ISSUE DISCOUNT SUBORDINATED DEBENTURE

 

Principal Amount $_________                        Original Issue Date:
August 26, 2022 Debenture Purchase Amount $_________

 

For value received, Smart
for Life, Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of ___________________
(“Holder”) in lawful money of the United States of America the principal amount of $_______________ (the “Principal
Amount”), together with accrued and unpaid interest thereon, each due and payable on the date and in the manner set forth below.

 

This original issue discount
subordinated debenture (the “Debenture”) is one of a series of original issue discount subordinated debentures being
issued by the Company to additional holders pursuant to that certain Debenture Purchase Agreement, dated as of August 26, 2022, by and
among the Company and purchasers signatory thereto (the “Purchase Agreement”), and is subject to its terms. This Debenture
and the other original issue discount subordinated debentures issued pursuant the Purchase Agreement are collectively referred to herein
as the “Debentures.” In the event of any conflict between this Debenture and the Purchase Agreement, the terms of the
Purchase Agreement will control.

 

1. Original
Issue Discount. This Debenture has been issued with “original issue discount” of fifteen percent (15%) for U.S. Federal
income tax purposes. The Company will make available to any holder of this Debenture (i) the issue price and issue date of the Debenture,
(ii) the amount of original issue discount on the Debenture, (iii) the yield to maturity of the Debenture, and (iv) any other information
required to be made available by U.S. Treasury Regulations upon receiving a written request for such information at the following address:
990 Biscayne Blvd., Suite 503, Miami, FL 33132.

 

2. Principal
Repayment. The outstanding Principal Amount of this Debenture and all accrued interest shall be due and payable on the earlier of
(i) the completion of the Company’s Next Equity Financing or (ii) August 26, 2024 or (iii) within 30 days after election of repayment
from the Holder so long as the election is after the 6-month anniversary of the Debenture (the “Maturity Date”). For
purposes hereof, “Next Equity Financing” means a bona fide transaction or series of transactions with the principal
purpose of raising capital in which the Company receives gross proceeds in excess of $20 million. The Maturity Date may be extended by
a written agreement between the Holder and the Company.

 

     

     

    

 

3. Interest.
Interest shall accrue on the unpaid Principal Amount from the date hereof until such Principal Amount is repaid in full at the rate of
17.5% per annum (the “Interest”). Interest shall be paid on the Maturity Date. All computations of the Interest rate
hereunder shall be made on the basis of a 365-day year.

 

4. Prepayment.
The Principal Amount and all accrued and unpaid Interest on this Debenture may be prepaid without penalty, in whole or in part, in the
Company’s sole discretion.

 

5. Events
of Default. An “Event of Default” shall occur hereunder:

 

(a) if
the Company shall default in the payment of the Principal Amount or any Interest on this Debenture, when and as the same shall become
due and payable and after written demand for payment thereof has been made and such amount remains unpaid for 30 business days after the
date of such notice;

 

(b) if
the Company shall default in the due observance or performance of any covenant, representation, warranty, condition or agreement on the
part of the Company to be observed or performed pursuant to the terms hereof or pursuant to the terms of the Purchase Agreement, and such
default is not remedied or waived within the time periods permitted therein, or if no cure period is provided therein, within 30 business
days after the Company receives written notice of such default; or

 

(c) if
the Company shall commence any proceeding in bankruptcy or for dissolution, liquidation, winding-up, composition or other relief under
state or federal bankruptcy laws, or if such proceedings are commenced against the Company, or a receiver or trustee is appointed for
the Company or a substantial part of its property, and such proceeding or appointment is not dismissed or discharged within 120 calendar
days after its commencement.

 

6. Acceleration.
If an Event of Default under Section 5(c) above occurs, then the Principal Amount and all accrued and unpaid Interest on this Debenture
shall automatically become immediately due and payable, without presentment, demand, protest or notice of any kind, all of which are expressly
waived. If any other Event of Default occurs and is continuing, the holders of not less than a majority of the then-outstanding aggregate
Principal Amount of the Debentures (the “Requisite Holders”), even without the consent of the Holder of this Debenture,
may declare the Principal Amount and all accrued and unpaid Interest on this Debenture to be due and payable immediately only upon written
notice to the Company. Upon any such declaration of acceleration, such Principal Amount and Interest shall become immediately due and
payable, and the Holder shall be entitled to exercise all of its rights and remedies hereunder and under the Purchase Agreement whether
at law or in equity. The failure of the Holder to declare this Debenture due and payable shall not be a waiver of its right to do so,
and the Holder shall retain the right to declare this Debenture due and payable unless the Holder shall execute a written waiver. The
Holder agrees that it cannot, and will not, seek to exercise any remedy against the Company without the consent of the Requisite Holders.

 

7. Subordination.

 

(a) All
claims of the Holder to the Principal Amount, Interest and any other amounts at any time owed under this Debenture (collectively, “Junior
Indebtedness”) are hereby expressly subordinated in right of payment, as herein set forth, to the prior payment in full of all
Senior Indebtedness (as defined below). In addition, the Junior Indebtedness is hereby expressly made pari passu in right of payment
to any other unsecured indebtedness incurred, now or in the future, by the Company in favor of any third party. For the purpose hereof,
“Senior Indebtedness” shall mean all indebtedness of the Company, whether outstanding on the date of execution of this
Debenture or thereafter created, to banks, insurance companies and other financial institutions or funds, unless in the instrument creating
or evidencing such indebtedness it is provided that such indebtedness is not senior in right of payment to this Debenture or otherwise
indicates that it is pari passu with other unsecured indebtedness of the Company.

 

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(b) No
payment under Junior Indebtedness shall be made by the Company, nor shall the Holder exercise any remedies under the Junior Indebtedness
(including taking any legal action (whether judicial or otherwise) to collect the Junior Indebtedness), if, at the time of such payment,
exercise or immediately after giving effect thereto, (i) there shall exist any “Default” or “Event of Default”
under any agreements governing any of the Senior Indebtedness or (ii) the maturity of any of the Senior Indebtedness has been accelerated
and such acceleration has not been waived or such Senior Indebtedness has not been paid in full; provided, however, that
(x) in the event that the holder of any Senior Indebtedness accelerates such Senior Indebtedness, then the Holder may accelerate the indebtedness
evidenced by this Debenture, and (y) if the Company is permitted under the terms of the Senior Indebtedness to pay an amount due and owing
under this Debenture and fails to make such payment, then so long as the terms of the Senior Indebtedness do not prohibit such action,
the Holder may exercise its rights to be paid such amount, but only such amount (and Holder shall not be permitted to accelerate hereunder).

 

(c) Upon
any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to creditors upon
any dissolution or winding up or total or partial liquidation or reorganization of the Company, whether voluntary or involuntary or in
bankruptcy, insolvency, receivership or other proceedings, all Senior Indebtedness of the Company shall first be paid in full, or payment
thereof provided for in money, before any payment is made under Junior Indebtedness; and upon any such dissolution or winding up or liquidation
or reorganization, any distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which
the Holder as holder of the Junior Indebtedness would be entitled except for the provisions hereof, shall be paid by the Company or by
any receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such payment or distribution, or by the Holder
if received by Holder, directly to the holders of the Senior Indebtedness (pro rata to each such holder on the basis of the respective
amounts of such Senior Indebtedness held by such holder), or their representatives, to the extent necessary to pay all such Senior Indebtedness
in full, in money, after giving effect to any concurrent prepayment or distribution to or for the benefit of the holders of such Senior
Indebtedness, before any payment or distribution is made to the Holder with respect to the Junior Indebtedness. If the holders of the
Senior Indebtedness in good faith believe Holder may fail to timely file a proof of claim in any such proceeding, the holder(s) of the
Senior Indebtedness may do so for Holder.

 

(d) In
the event that any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities,
prohibited by the foregoing shall be received by the Holder before all the Senior Indebtedness is paid in full, or provisions made for
such payment, in accordance with its terms, such payment or distribution shall be held for the benefit of, and shall be paid over or delivered
to, the holders of the Senior Indebtedness or their representative or representatives, as their respective interests may appear, for application
to the payment of all the Senior Indebtedness remaining unpaid to the extent necessary to pay all such Senior Indebtedness in full, in
money, in accordance with its terms, after giving effect to any concurrent payment or distribution to or for the holders of such Senior
Indebtedness.

 

(e) The
provisions hereof are solely for the purpose of defining the relative rights of the holders of the Senior Indebtedness on the one hand
and the Holder as holder of the Junior Indebtedness on the other hand, and nothing herein shall impair, as between the Company and the
Holder, the obligations of the Company under the Junior Indebtedness, which are unconditional and absolute. With this in mind, notwithstanding
the other provisions of this Section 7, if and so long as all documents governing the Senior Indebtedness permit one of the actions restricted
by this Section 7, the restriction shall be waived and the restricted action permitted hereunder.

 

(f) No
right of any present or future holder of any Senior Indebtedness to enforce the subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of the Company or any act or failure to act, in good faith,
by any such holder of the Senior Indebtedness, or any noncompliance by the Company with the terms, provisions and covenants hereof, regardless
of any knowledge thereof any holder of the Senior Indebtedness may have or be otherwise charged with. Without in any way limiting the
generality of the foregoing, the holders of the Senior Indebtedness may, at any time and from time to time, without the consent of or
notice to the Holder, without incurring responsibility to the Holder and without impairing or releasing the subordination provided in
this Debenture or the obligations hereunder of the Holder to the holders of the Senior Indebtedness, do any one or more of the following:
(i) change the manner, place or terms of payment or extend the time of payment of, or create, renew or alter, the Senior Indebtedness,
or otherwise amend or supplement in any manner the Senior Indebtedness or any instrument evidencing the same or any agreement under which
the Senior Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise
securing the Senior Indebtedness; (iii) release any person liable or contingently liable in any manner for the payment or collection of
the Senior Indebtedness; and/or (iv) exercise or refrain from exercising any rights against the Company or any other person.

 

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(g) Each
holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance of this Debenture,
shall be entitled to rely on the subordination provisions set forth in this Debenture.

 

(h) Notwithstanding
the provisions of this Section 7, the Holder shall not be charged with knowledge of the existence of facts which would prohibit the making
of any payments on the Junior Indebtedness unless and until the holder(s) of the Senior Indebtedness or their representatives send written
notice to Holder of same.

 

(i) Subject
to the payment in full of all the Senior Indebtedness, the Holder as holder of the Junior Indebtedness shall be subrogated to the rights
of the holders of the Senior Indebtedness to receive payments or distributions of assets of the Company applicable to the Senior Indebtedness
until the Senior Indebtedness shall be paid in full.

 

(j) The
Holder shall confirm (in writing) the above subordination provisions if requested by any holder of the Senior Indebtedness, and shall
execute and deliver such additional subordination agreements, consistent with the foregoing as any holder of Senior Indebtedness may require.

 

8. Attorney’s
Fees. If the indebtedness represented by this Debenture or any part thereof is collected in bankruptcy, receivership or other judicial
proceedings or if this Debenture is placed in the hands of attorneys for collection after default, the Company agrees to pay, in addition
to the principal amount and interest payable hereunder, reasonable attorneys’ fees and costs incurred by Holder.

 

9. Mutilated,
Destroyed, Lost or Stolen Debenture. If this Debenture shall become mutilated or defaced, or be destroyed, lost or stolen, the Company
shall execute and deliver a new debenture of like principal amount in exchange and substitution for the mutilated or defaced Debenture,
or in lieu of and in substitution for the destroyed, lost or stolen Debenture. In the case of a mutilated or defaced Debenture, the Holder
shall surrender such Debenture to the Company. In the case of any destroyed, lost or stolen Debenture, the Holder shall furnish to the
Company a lost affidavit in customary form (including customary indemnification).

 

10. Waiver
of Notice of Presentment. The Company hereby waives presentment, demand for performance, notice of non-performance, protest, notice
of protest and notice of dishonor. No delay on the part of Holder in exercising any right hereunder shall operate as a waiver of such
right or any other right.

 

11. Non-Waiver.
The failure of the Holder to enforce or exercise any right or remedy provided in this Debenture or at law or in equity upon any default
or breach shall not be construed as waiving the rights to enforce or exercise such or any other right or remedy at any later date. No
exercise of the rights and powers granted in or held pursuant to this Debenture by the Holder, and no delays or omissions in the exercise
of such rights and powers shall be held to exhaust the same or be construed as a waiver thereof, and every such right and power may be
exercised at any time and from time to time.

 

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12. Usury.
Notwithstanding anything herein to the contrary, this Debenture is subject to the express condition that at no time shall the Company
be obligated or required to pay Interest hereunder at a rate which could subject the Holder to either civil or criminal liability as a
result of being in excess of the maximum contract rate which is permitted by law. If, by the terms of this Debenture, the Company is at
any time required or obligated to pay Interest at a rate in excess of the maximum contract rate which is permitted by law, the rate of
Interest under this Debenture shall be immediately reduced to the maximum contract rate which is permitted by law and all Interest payable
hereunder shall be computed at the maximum contract rate permitted by law, and the portion of all prior Interest payments in excess of
the maximum contract rate permitted by law shall be applied to and shall be deemed to have been payments made for the reduction of the
outstanding Principal Amount of this Debenture.

 

13. Assignment.
This Debenture and the rights hereunder may not be assigned or transferred by the Holder, other than to an affiliate of the Holder, without
the prior written consent of the Company, provided that any affiliate transferee, prior to effectiveness of such transfer, must
agree in writing to be subject to the terms of this Debenture to the same extent as if such affiliate transferee were the original holder,
and provided further that the Holder must give written notice to the Company of its intention to effect such transfer. Any purported
assignment in contravention of this Section 13 shall be null and void. Subject to the foregoing, this Debenture shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

14. Amendment.
Any term of this Debenture may be amended, and any provision hereof waived, with the written consent of the Company and the Requisite
Holders, even without the consent of the Holder hereof. Any amendment effected in accordance with this Section 14 shall be binding upon
each holder of all Debentures (including the Holder), each future holder of any Debentures, and the Company.

 

15. Notices.
Any notice, request or other communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given
if given in accordance with the provisions of the Purchase Agreement.

 

16. Governing
Law. This Debenture is being delivered in and shall be construed in accordance with the laws of the State of Florida, without regard
to its conflicts of laws or choice of law provisions.

 

17. Headings.
The descriptive headings contained in this Debenture are included for convenience of reference only and will not affect in any way the
meaning or interpretation of this Debenture.

 

18. Severability.
If one or more provisions of this Debenture are held to be unenforceable under applicable law, such provisions shall be excluded from
this Debenture, and the balance of this Debenture shall be interpreted as if such provisions were so excluded and shall be enforceable
in accordance with its terms.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF,
the Company has duly executed and delivered this Debenture as of the date first above written.

 

	 	Smart For Life, Inc.
	 	 	 
	 	By:	 
	 	Name: 	Alfonso J. Cervantes, Jr.
	 	Title:	Executive Chairman

 

 

6cbl-ex101_19.htm

Exhibit 10.1

FINAL 

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and between Benjamin W. Jaenicke (“Executive”) and CBL & Associates Management, Inc., a Delaware corporation (together with its successors and assigns permitted under this Agreement, the “Company”), as of September 1, 2022 (the “Effective Date”).  Executive is employed by CBL & Associates Management, Inc., which is an affiliate of CBL & Associates Properties, Inc., a Delaware corporation (“CBL/REIT”), and, as such, references herein to, the “Company”, where the context requires, will include the CBL/REIT.

WHEREAS, the Company desires to employ the Executive and the Executive desires to be employed by the Company, on the terms and conditions set forth in this Agreement. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

	
1.
	
Term of Employment.  The Company hereby agrees to employ Executive, and Executive hereby agrees to be employed with the Company, upon the terms and conditions contained in this Agreement, for the period set forth in this Agreement.  Executive’s continued employment with the Company pursuant to this Agreement shall commence on the Effective Date and shall continue until April 1, 2024 (the “Initial Term”) unless this Agreement is renewed pursuant to Section 8 below or until terminated in accordance with and pursuant to Section 8 below. The Initial Term and any renewal term as set forth in Section 8 below is hereinafter referred to as the “Term”.

	
2.
	
Employment Duties.  Executive shall have the title of Executive Vice President - Finance of the Company and CBL/REIT (and shall transition to the title of Executive Vice President, Chief Financial Officer and Treasurer as of January 1, 2023) and shall have such duties, authorities and responsibilities as are consistent with such position(s) and as the Board of Directors of CBL/REIT (the “Board”) may designate from time to time.  Executive shall devote Executive’s full working time and attention and Executive’s best efforts to Executive’s employment and service with the Company and shall perform Executive’s services in a capacity and in a manner consistent with Executive’s position for the Company. 

	
3.
	
Annual Base Salary.  During the period from the Effective Date through December 31, 2022, the Company shall pay Executive a base salary of a gross amount of $116,667 for the period (which is an annual base salary of $350,000 but pro-rated for the period from the Effective Date through December 31, 2022); for the period from January 1, 2023 to December 31, 2023, the Company shall pay executive an annual base salary of a gross amount of $350,000; for the period commencing on January 1, 2024, the Company shall pay executive an annual base salary of a gross amount of $400,000; all such salary payments shall be payable in accordance with the Company’s normal payroll practices.  Executive’s annual base salary, as in effect from time to time, is 

 

 

 

		
hereinafter referred to as the “Annual Base Salary.”*1 The Annual Base Salary may be increased in the discretion of the Compensation Committee of the Board (the “Compensation Committee”) (and in the absence of such Compensation Committee, by the Board) or the Board but shall not be decreased by an amount greater than five percent (5%), during the Term.  

	
4.
	
Annual Bonus.  With respect to each fiscal year of the Company commencing for the 2022 fiscal year of the Company and continuing for each subsequent fiscal year of the Company thereafter during the Term, Executive shall be eligible to earn an annual cash bonus award (the “Annual Bonus”) in an amount established by the Compensation Committee or the Board, which may include all or a portion of such amount being determined based upon the achievement of performance targets established by the Compensation Committee or the Board, in its or their discretion.  The Annual Bonus, if any, shall be paid at the same time annual bonuses are paid to other senior executives of the Company generally or as otherwise determined by the Compensation Committee or the Board, but in no event later than ninety (90) days following, the end of the fiscal year in which the Annual Bonus was earned, and shall be subject to Executive being employed by the Company on January 1st of the fiscal year following the year in which such Annual Bonus relates.  Notwithstanding any provision of this Section 4 to the contrary, Executive’s Annual Bonus for the Company’s 2022 fiscal year shall be $109,333*2.   Executive’s target Annual Bonus for the Company’s 2023 fiscal year under an applicable annual cash bonus program shall be $338,000 (the “Target 2023 Annual Bonus”)*3.

	
5.
	
[Intentionally Left Blank] 

	
6.
	
Equity Incentive Programs.  Executive shall receive an initial grant of 20,000 shares of the Company’s common stock on the Effective Date hereof which shall be restricted per the terms of a separate stock restriction agreement (the “Initial Grant Stock Restriction Agreement”) to be executed by the Executive and the Company.  The Executive shall be entitled to participate in the Company’s equity incentive programs for the 2023 fiscal year of the Company with awards of restricted common stock of the Company and performance stock units (or equivalents) of the Company commensurate with the level of other Named Executive Officers*4 of the Company (excluding the Chief Executive Officer) but with awards of restricted common stock of not less than 25,000 shares and awards of performance stock units (or equivalents) of not less than 30,000 shares/units.  The Executive’s participation in such programs for 2024 and subsequent years shall be determined by the Compensation Committee or the Board.

	
	 

	
 *1 
	
  For purposes of other provisions of this Agreement, i.e., Section 9 below, the Executive’s Annual Base Salary for the 2022 year shall be based upon the amount of $350,000. 

	
 *2 
	
 For purposes of other provisions of this Agreement, the Executive’s Annual Bonus for the 2022 year shall be based upon the amount of $328,000 but has been pro-rated for the period from the Effective Date through December 31, 2022.

	
 *3 
	
 Represents Executive’s Annual Bonus for 2022 without pro-ration and an increase of 3% (rounded up) over that amount. 

	
 *4 
	
 Named Executive Officers are the executive officers of the Company who are listed as the Named Executive Officers in the Company’s proxy statement filed in conjunction with the Company’s annual shareholders meeting. 

2

 

 

 

	
7.
	
Employee Benefits. Executive shall be entitled to participate in the employee benefit plans offered by the Company to its employees generally (collectively, “Benefit Plans”), consistent with the terms of the applicable Benefit Plan. The Company reserves the right to amend or cancel any Benefit Plan in accordance with its terms. Executive shall be entitled to annual paid time off (“PTO”) in accordance with the Company’s PTO policies as in effect from time to time.  Subject to Section 9(d) below, Executive (or Executive’s spouse/family, if Executive’s employment is terminated due to Executive’s death and Executive’s spouse/family was participating in the Company’s health insurance program at that time) shall be entitled to continue, at the Company’s expense for a period of eighteen (18) calendar months following the month in which the date of Executive’s death or termination of Executive’s employment occurs other than Executive’s termination by the Company for Cause, to participate in and receive benefits and coverage under the Company’s Benefit Plans that provide health insurance to Company employees, with Executive being entitled to the levels of benefits and coverages that were in place for Executive (and Executive’s spouse/family if applicable) as of the date of termination of employment or Executive’s death. Notwithstanding any provision of this Section 7 to the contrary and subject to Section 9(d) below, if, upon Executive’s death or termination of employment other than Executive’s termination by the Company for Cause, Executive (or Executive’s spouse if Executive’s employment is terminated due to Executive’s death) is entitled to participate in the Company’s Tier I Legacy Retiree Program, Tier II Legacy Retiree Program or Tier III – Post 65 Retiree Program (collectively, the “Legacy Retiree Programs”) and such Legacy Retiree Programs provide for Company-provided health insurance for a period of time in excess of the eighteen (18)-month period referenced above, Executive and/or Executive’s spouse shall be entitled to participate in the applicable Legacy Retiree Program for such longer period as set forth in the applicable Legacy Retiree Program.

	
8.
	
Termination of Employment.  Executive’s employment hereunder may be terminated as follows:

 

	
 
	
(a)
	
Automatically in the event of the death of Executive;

 

(b)At the option of the Company, by written notice to Executive or Executive’s legal representative, in the event of the Disability of Executive; 

 

“Disability” shall mean  Executive’s complete and permanent disability as defined by the Company’s health insurance plans or as otherwise defined by the Company from time to time consistent with applicable law.  Executive acknowledges and agrees that the determination of disability shall be within the sole, absolute and exclusive discretion of the Company; 

 

(c)At the option of the Company for Cause, as determined in the discretion of the Company, by delivering written notice to Executive; 

 

For purposes of this Agreement, “Cause” shall mean (i) any act of fraud or willful malfeasance committed by Executive; (ii) Executive’s engagement in conduct which, is injurious to the Company or any of its affiliates, monetarily or otherwise if (provided, that, such conduct is capable of being cured), after written notice by the Board or the Compensation Committee to Executive stating, with specificity, the alleged conduct and providing direction and a reasonable opportunity for Executive to cure any such alleged conduct, Executive then fails to cure such alleged conduct 

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within thirty (30) days following Executive’s receipt of such written notice to the reasonable satisfaction of the Board or the Compensation Committee; (iii) Executive’s failure to perform Executive’s material duties under this Agreement, or Executive’s material breach of this Agreement, if (provided, that, such failure to perform or material breach is capable of being cured), after written notice by the Board or the Compensation Committee to Executive stating, with specificity, the duties Executive has failed to perform and providing direction and a reasonable opportunity for Executive to cure any such alleged failures, Executive then fails to cure alleged failures within thirty (30) days following Executive’s receipt of such written notice to the reasonable satisfaction of the Board or the Compensation Committee; (iv) Executive’s  conviction of, or pleading guilty or no contest to, a felony, or a conviction of, or a plea of guilty or no contest to, any criminal offence involving fraud, willful malfeasance, embezzlement, extortion, bribery, misappropriation or moral turpitude; (v) Executive’s (A) material violation of the Company’s policies and procedures including, but not limited to, (I) the Company’s policies prohibiting conduct that constitutes sexual misconduct, harassment (including sexual harassment), discrimination or retaliation and (II) the Fourth Amended and Restated Code of Business Conduct and Ethics dated February 16, 2022, as may be further amended; and (B) engagement in any conduct or cover-up of such conduct that is in violation of any of the Company’s policies and procedures (including but not limited to policies listed in (I) and (II) of this Subsection 8(c)(v)) that could cause or has caused damage to the reputation or business of the Company or any of its affiliates or their respective employees; provided, however, that, except for violations that would constitute “Cause” under subsection (iv) directly above, after written notice by the Board or the Compensation Committee to Executive stating, with specificity, the material violations alleged to have been committed by Executive and providing direction and a reasonable opportunity for Executive to cure any such alleged violations (if curable, as determined by the Board or the Compensation Committee), Executive then fails to cure alleged violations within thirty (30) days following Executive’s receipt of such written notice to the reasonable satisfaction of the Board or the Compensation Committee.   

 

(d)At the option of the Company at any time without Cause, by delivering written notice to Executive;

 

(e)At the option of Executive (other than resignation by the Executive for Good Reason following the occurrence of a Change in Control), upon thirty (30) days prior written notice to the Company (which the Company may, in its sole discretion, make effective on the date of its receipt of such written notice or at any time within such thirty (30)-day period); 

 

(f)Following the occurrence of a Change in Control, upon the resignation by Executive for Good Reason; 

For purposes of this Agreement, “Good Reason” shall mean (i) a material diminution in the Executive’s duties and responsibilities; provided, however, that the Executive shall not have Good Reason to terminate employment pursuant to this clause if such change in duties and responsibilities results solely from the Company’s ceasing to be a publicly-traded company; (ii) a reduction in Executive’s Annual Base Salary, other than a reduction not in excess of five percent (5%) as provided in Section 3 of the Agreement; or (iii) the relocation of the geographic location of Executive’s principal place of employment to a location more than fifty (50) miles from Executive’s principal place of employment as of the date hereof; provided, that, Executive  shall not have the right to terminate Executive’s employment hereunder for Good Reason unless (1) 

4

 

 

within thirty (30) days of the initial existence of the condition or conditions giving rise to such right Executive provides written notice to the Company of the existence of such condition or conditions, and (2) the Company fails to remedy such condition or conditions within thirty (30) days following the receipt of such written notice (the “Cure Period”). If any such condition is not remedied within the Cure Period, Executive must terminate Executive’s employment with the Company immediately following the end of the Cure Period. 

As used in this Agreement, a “Change in Control” shall have the meaning ascribed to such term in the CBL & Associates Properties, Inc. 2021 Equity Incentive Plan adopted to be effective as of November 1, 2021 as such may be amended from time to time.

(g)Upon the expiration of the Term of this Agreement.

Provided, however, if Executive’s employment is not terminated on or before the termination of the Initial Term hereof, this Agreement shall then automatically renew for successive one (1)-year terms until terminated pursuant to this Section 8. Either Executive or the Company (or both) may elect not to renew this Agreement at the end of the Initial Term by giving the other a written notice of non-renewal at least one-hundred and twenty (120) days prior to the end of the Initial Term. Either Executive or the Company (or both) may elect not to renew this Agreement at the end of any subsequent one (1)-year renewal term by giving the other a written notice of non-renewal at least one-hundred and twenty (120) days prior to the end of the respective one (1)-year renewal term.

	
9.
	
Payments Upon Termination of Employment.

(a)Termination by the Company Without Cause or by Executive for Good Reason following the Occurrence of a Change in Control.  If (x) Executive’s employment is terminated at any time by the Company without Cause or (y) Executive terminates Executive’s employment with the Company for Good Reason at any time following the occurrence of a Change in Control, Executive shall be entitled to, in addition to the continued benefits set forth in Section 7 of this Agreement, the following:

(i)(A) within thirty (30) days following such termination, payment of Executive’s accrued and unpaid Annual Base Salary accrued through the date of termination and (B) all other accrued amounts or accrued benefits due to Executive in accordance with the Company’s benefit plans, programs or policies (other than severance), required by law; and 

(ii)Subject to Section 9(d) below, an amount (the “Severance Amount”) equal to two times (2x) the sum of: (A) Executive’s Annual Base Salary in effect immediately prior to Executive’s date of termination plus (B) an amount equal to the Executive’s Target 2023 Annual Bonus, payable in substantially equal installments in accordance with the Company’s regular payroll practices as in effect from time to time, over the twelve (12) months following the date of termination (the “Severance Period”); provided, that the first payment pursuant to this Section 9(a)(ii) shall be made on the first payroll date after the sixtieth (60th) day following the date of Executive’s termination (the “Without Cause/For Good Reason Payment Date”), subject to the prior execution, delivery and non-revocation by Executive to the Company of the General Release, as defined and set forth below, and any other documents or instruments reasonably required by the Company to be executed by Executive in standard terminations of employment 

5

 

 

as determined by the Company’s HR department*5 and that are consistent with the past practices of the Company’s HR department for similarly-situated executives. In the event of Executive’s death during the Severance Period, any payments to be made pursuant to this Section 9(a)(ii) shall be paid to Executive’s legal representative.

(b)Termination on Executive’s Death or Disability.  If Executive’s employment is terminated at any time on Executive’s death or by the Company due to Executive’s Disability, Executive or Executive’s legal representative, as applicable, shall be entitled to, in addition to the continued benefits set forth in Section 7 of this Agreement, the following:

	

	
(i)(A) within thirty (30) days following such termination, payment of Executive’s accrued and unpaid Annual Base Salary accrued through the date of termination and (B) all other accrued amounts or accrued benefits due to Executive in accordance with the Company’s benefit plans, programs or policies (other than severance), required by law; and

	

	
(ii)Subject to Section 9(d) below, an amount (the “Death/Disability Severance Amount”) equal to two times (2x) Executive’s Annual Base Salary in effect immediately prior to Executive’s date of termination, with such Death/Disability Severance Amount to be paid to Executive over the Severance Period payable in substantially equal installments in accordance with the Company’s regular payroll practices as in effect from time to time during the Severance Period; provided, that the first payment pursuant to this Section 9(b)(ii) shall be made on the first payroll date after the sixtieth (60th) day following the date of Executive’s death or termination by the Company due to Disability (the “Death or Disability Payment Date” and each of the Death or Disability Payment Date and the Without Cause/For Good Reason Payment Date, a “Payment Date”), subject to the prior execution, delivery and non-revocation by Executive or Executive’s legal representative, as applicable, to the Company of the General Release, as defined and set forth below, and any other documents or instruments reasonably required by the Company to be executed by Executive or Executive’s legal representative, as applicable, in standard terminations of employment as determined by the Company’s HR department and that are consistent with the past practices of the Company’s HR department for similarly-situated executives.

(c)Other Terminations.  Subject to Section 7 of this Agreement, if Executive’s employment is terminated for any reason other than (i) by the Company without Cause, (ii) by Executive for Good Reason following the occurrence of a Change in Control, or (iii) on Executive’s death or by the Company due to Executive’s Disability, Executive shall be entitled to receive only the payments and benefits described under Section 9(a)(i) of this Agreement.  

(d)Conditions to Payment.  (i) The continued benefits following Executive’s  death or termination other than a termination by the Company for Cause under Section 7 herein shall be provided in accordance with Section 7 and (ii) the first payment of the Severance Amount or the Death/Disability Severance Amount shall be made on the applicable Payment Date on termination pursuant to Section 9(a) or Section 9(b)

	
	 

	
 *5 
	
 Also known as the Company’s People & Culture Department.

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, as applicable (with such first payment inclusive of the installment payments that would otherwise have been payable during such sixty (60)-day period); provided, that, prior to such Payment Date, Executive or Executive’s legal representative, as applicable (i) executes and delivers to the Company a general release of claims in a form acceptable to the Company (the “General Release”) and does not revoke such execution within the revocation period specified in such General Release, (ii) executes and delivers to the Company any other documents or instruments reasonably required by the Company to be executed in standard terminations of employment as determined by the Company’s HR department and that are consistent with the past practices of the Company’s HR department for similarly-situated executives, and (iii) withdraws, resigns or otherwise terminates any and all positions with the Company or any of its affiliates, including effectuating such termination in any reasonable manner requested by the Company. Failure to timely execute and return such General Release shall be a waiver by Executive or Executive’s legal representative, as applicable, of Executive’s right to the continued benefits under Section 7 and the Severance Amount or Death/Disability Severance Amount, as applicable (which, for the avoidance of doubt, shall not include the payments and benefits described under Sections 9(a)(i) or 9(b)(i) of this Agreement); provided, that, the parties may mutually agree to extend the date set forth in the General Release on which Executive must execute, deliver and not revoke the General Release so long as no extension of such period to execute, deliver and not revoke the release extends past the sixtieth (60th) day following Executive’s date of termination.  In addition, (x) the continued benefits under Section 7 in accordance with Section 7 and (y) the payment of the Severance Amount or the Death/Disability Severance Amount on a termination pursuant to Section 9(a) or on a termination pursuant to Section 9(b), as applicable, shall be conditioned on Executive’s compliance with Section 10 of this Agreement, and on Executive’s continued compliance with Section 11 and Section 12 of this Agreement as provided in Section 13 below.

(e)No Other Severance.  Executive hereby acknowledges and agrees that, other than (i) the payments and benefits described under Sections 9(a)(i) or 9(b)(i) of this Agreement, (ii) the continued benefits set forth in Section 7 of this Agreement and (iii) the Severance Amount or the Death/Disability Severance Amount payable on a termination pursuant to Section 9(a) or on a termination pursuant to Section 9(b), upon the effective date of the termination of Executive’s employment, Executive shall not be entitled to receive any other payments or benefits from the Company or any of its affiliates, including any severance payments or benefits of any kind under any Company benefit plan, severance policy generally available to the Company’s employees or otherwise and all other rights of Executive to compensation under this Agreement shall end as of such date.   Notwithstanding any provision of this Section 9(e) to the contrary, Executive shall be entitled to Executive’s vested account in any Company retirement plan, including but not limited to the Company’s 401(K) Profit Sharing Plan and Trust, on Executive’s termination of employment. 

	
10.
	
Return of Company Property.  Immediately following the effective date of Executive’s termination for any reason, Executive, or Executive’s legal representative, as applicable, shall return all property of the Company or any of its affiliates in Executive’s possession, custody or control, including, but not limited to, all Company-owned computer equipment (hardware and software), telephones, facsimile machines, tablet computers and other communication devices, credit and charge cards, office keys, security access cards, badges, identification cards and all copies (including drafts) of any documentation or information, including Confidential and Proprietary Information (as defined below) (however stored) relating to the business of the Company or any of its affiliates.  

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11.
	
Confidentiality; Non-Solicitation; Non-Competition.

	

	
(a)Confidential and Proprietary Information.  Executive agrees that all materials and items produced or developed by Executive for the Company or any of its affiliates, or obtained by Executive from the Company or any of its affiliates either directly or indirectly pursuant to this Agreement or otherwise shall be and remains the property of the Company and its affiliates.  Executive acknowledges that Executive will, during Executive’s association with the Company, acquire, or be exposed to, or have access to, materials, data and information that constitute valuable, confidential and proprietary information of the Company and its affiliates, including, without limitation, any or all of the following:  business plans, practices and procedures, pricing information, sales figures, profit or loss figures, this Agreement and its terms, information relating to tenants, occupants, intellectual property, suppliers, technology, sources of supply and customer lists, research, technical data, trade secrets, or know-how, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, policies, training manuals and similar materials used by the Company in conducting its business operations, personnel information of any Person employed by the Company, potential business combinations, and such other information or material as the Company may designate as confidential and/or proprietary from time to time (collectively hereinafter, the “Confidential and Proprietary Information”).  During Executive’s employment with the Company and at all times thereafter, Executive shall not, directly or indirectly, use, misuse, misappropriate, disclose or make known, without the prior written approval of the Board, to any party, firm, corporation, association or other entity, any such Confidential and Proprietary Information for any reason or purpose whatsoever, except as may be required in the course of Executive’s performance of Executive’s duties hereunder.  In consideration of the unique nature of the Confidential and Proprietary Information, all obligations pertaining to the confidentiality and nondisclosure thereof shall remain in effect until the Company and its affiliates have released such information; provided, that the provisions of this Section 11(a) shall not apply to the disclosure of Confidential and Proprietary Information to the Company’s affiliates together with each of their respective shareholders, directors, officers, accountants, lawyers and other representatives or agents, nor to a Permitted Disclosure as defined in Section 11(b) below. In addition, it shall not be a breach of the confidentiality obligations hereof if Executive is required by applicable law to disclose any Confidential and Proprietary Information; provided, that in such case, Executive shall (x) give the Company the earliest notice possible that such disclosure is or may be required and (y) cooperate with the Company, at the Company’s expense, in protecting to the maximum extent legally permitted, the confidential or proprietary nature of the Confidential and Proprietary Information which must be so disclosed. Upon termination of Executive’s employment, Executive agrees that all Confidential and Proprietary Information, directly or indirectly, in Executive’s possession, that is in writing, or other tangible form (together with all duplicates thereof) will immediately be returned to the Company and will not be retained by Executive or furnished to any person, either by sample, facsimile film, audio or video cassette, electronic data, verbal communication or any other means of communication.

	

	
(b)Permitted Disclosure.  This Agreement does not limit or interfere with Executive’s right to communicate and cooperate in good faith with any self-regulatory organization or U.S. federal, state, or local governmental or law enforcement branch, agency, commission, or entity (collectively, a “Government Entity”) for the purpose of (i) reporting a possible violation of any U.S. federal, state, or local law or regulation, (ii) participating in any 

8

 

 

		
investigation or proceeding that may be conducted or managed by any Government Entity, including by providing documents or other information, or (iii) filing a charge or complaint with a Government Entity; provided, that, in each case, such communications, participation, and disclosures are consistent with applicable law; provided, further, that, Executive may not receive any relief (including, but not limited to, reinstatement, back pay, front pay, damages, attorneys’ or experts’ fees, costs, and/or disbursements) as a consequence of any charge or complaint filed with a Government Entity and/or any litigation arising out of a charge or complaint filed with a Government Entity except as provided in any indemnity agreement between the Company and the Executive. Additionally, Executive shall not be held criminally or civilly liable under the Defend Trade Secrets Act, 18 U.S.C. § 1833(b), or any applicable federal or state trade secret law, for the disclosure of a trade secret that is made (A) in confidence to a federal, state, or local government official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (B) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  All disclosures permitted under this Section 11(b) are herein referred to as “Permitted Disclosures.”  Notwithstanding the foregoing, under no circumstance will Executive be authorized to disclose any Confidential and Proprietary Information as to which the Company may assert protections from disclosure under the attorney-client privilege or the attorney work product doctrine, without prior written consent of Company’s designated legal counsel or an authorized officer designated by the Company.

	

	
(c) Work Product. Executive agrees that any and all developments, improvements, inventions, discoveries, creations, formulae, algorithms, processes, systems, interfaces, protocols, concepts, programs, products, risk management tools, methods, designs, and works of authorship, and any and all documents, information (including Confidential and Proprietary Information), or things relating thereto, whether patentable or not, within the scope of or pertinent to any business, research, or development in which the Company or any of its affiliates is engaged or (if such is known to or ascertainable by Executive) considering engaging, which Executive may conceive, make, author, create, invent, develop, or reduce to practice, in whole or in part, during Executive’s employment with the Company or any of its affiliates, whether alone or working with others, whether during or outside of normal working hours, whether inside or outside of the offices of the Company or any of its affiliates, and whether with or without the use of the computers, systems, materials, equipment, or other property of the Company or any of its affiliates, shall be and remain the sole and exclusive property of the Company or any of its affiliates (the foregoing, individually and collectively, “Work Product”). To the maximum extent allowable by law, any Work Product subject to copyright protection shall be considered “works made for hire” for the Company or any of its affiliates under U.S. copyright law. To the extent that any Work Product that is subject to copyright protection is not considered a work made for hire, or to the extent that Executive otherwise has or retains any ownership or other rights in any Work Product (or any intellectual property rights therein) anywhere in the world, Executive hereby assigns and transfers to the Company or any of its affiliates all such rights, including the intellectual property rights therein, effective automatically as and when such Work Product is conceived, made, authored, created, invented, developed, or reduced to practice. The Company or its affiliates shall have the full worldwide right to use, assign, license, and/or transfer all rights in, with, to, or relating to Work Product (and all intellectual property rights therein). Executive shall, whenever requested to do so by the Company (whether during Executive’s employment or thereafter), execute any and all applications, assignments, and/or other instruments, and do all other things (including cooperating in any matter or giving testimony in any legal proceeding) 

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which the Company may deem necessary or appropriate in order to (A) apply for, obtain, maintain, enforce, or defend patent, trademark, copyright, or similar registrations of the United States or any other country for any Work Product; (B) assign, transfer, convey, or otherwise make available to the Company or any of its affiliates any right, title, or interest which Executive might otherwise have in any Work Product; and/or (C) confirm the Company’s or any of its affiliate’s right, title, and interest in any Work Product. Executive shall promptly communicate and disclose all Work Product to the Company and, upon request, report upon and deliver all such Work Product to the Company or its affiliates. Executive shall not use or permit any Work Product to be used for any purpose other than on behalf of the Company or its affiliates, whether during Executive’s employment or thereafter.

	

	
(d)Non-Solicitation. Executive agrees that during the Non-Solicitation Restricted Period (defined below), Executive will not, without written consent of the Company, directly or indirectly, Solicit (as defined below), recruit, induce or encourage to leave employment or association with the Company or its affiliates, or to become employed by, become associated with or consult for, any Person other than the Company or its affiliates, or to hire, attempt to hire, employ or engage (whether as an employee, consultant, agent, independent contractor or otherwise), any Person who or which is or was employed or engaged by the Company or its affiliates at any time during the Non-Solicitation Restricted Period or the one (1) year period preceding the Non-Solicitation Restricted Period, or directly or indirectly, Solicit or accept business from, any Person who is a customer, client or supplier of the Company or its affiliates, with whom Executive has had, or employees reporting to Executive have had, personal contact or dealings on behalf of the Company during the one (1)-year period preceding the Non-Solicitation Restricted Period, or induce or encourage any such Person to cease to engage the services of the Company or its affiliates in order to use the services of any Person that competes with a business of the Company or its affiliates.  “Non-Solicitation  Restricted Period” means the period beginning on the Effective Date and ending on the one (1)-year anniversary of the date on which Executive’s employment is terminated. “Person” means an individual, a partnership, a corporation, an association, a limited liability company, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof.  “Solicit” shall mean making any direct or indirect communication of any kind, regardless of who initiates it, or engaging in any conduct, that in any way invites, advises, encourages, or requests any Person to take or refrain from taking any action.  

	

	
(e)Non-Competition.  Executive agrees that during the Non-Competition Restricted Period (defined below), Executive will not, directly or indirectly, individually or on behalf of any Person, whether for compensation or otherwise, engage in Competing Business in any state of the United States of America in which the Company or any of its affiliates did business during Executive’s service, or any other jurisdiction in which the Company or any of its affiliates engages in business or derives a material portion of its revenues, or where the Company or any of its affiliates has plans to commence business activities. “Non-Competition Restricted Period” means the period beginning on the Effective Date and ending on the six (6)-month anniversary of the date on which Executive’s employment is terminated. “Competing Business” means any business engaged in by the Company or any of its affiliates on the date of Executive’s termination or any business activity in which the Company or any of its affiliates has substantive plans to engage as of the date of Executive’s termination.  

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(f)Non-disparagement.  Executive agrees that during Executive’s employment with the Company or any of its affiliates and following the end of Executive’s employment (regardless of whether Executive resigns or is terminated, or the reason for any such resignation or termination), Executive shall not make, publish, encourage, ratify, or authorize, whether in private or in public, whether orally or in writing, or otherwise, whether directly or indirectly, any disparaging or defamatory comments concerning the Company or any of its affiliates, or the Company’s or its affiliate’s respective businesses, products or services, or their respective current or former directors, officers, agents, partners, shareholders or employees, in any manner whatsoever, or aid, assist, or direct any other Person to do any of the foregoing. Nothing in this Section 11(f) shall interfere with Executive’s ability to make the Permitted Disclosures, as defined in Section 11(b) above.  

	

	
(g)Tolling.  In the event of any violation of the provisions of this Section 11, Executive acknowledges and agrees that the post-termination restrictions contained in this Section 11 shall be extended by a period of time equal to the period of such violation, it being the intention of the parties hereto that the running of the applicable post-termination restriction period shall be tolled during any period of such violation.

	
12.
	
Cooperation.  From and after Executive’s termination of employment, Executive shall provide Executive’s reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive’s employment hereunder, and assist and advise the Company in any investigation which may be performed by the Company, provided, that the Company shall reimburse Executive for Executive’s reasonable costs and expenses and such cooperation shall not unreasonably burden Executive or unreasonably interfere with any subsequent employment that Executive may undertake.  In the event Executive is subpoenaed by any person or entity (including, but not limited to, any Government Entity) to give testimony or provide documents (in a deposition, court proceeding, or otherwise), that in any way relates to Executive’s employment by the Company, Executive will give prompt notice of such subpoena to the Company and will make no disclosure until the Company has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure.  Nothing in this Section 12 shall limit Executive’s right to make Permitted Disclosures as provided in Section 11(b) above.

	
13.
	
Injunctive Relief and Specific Performance.  Executive understands and agrees that Executive’s covenants under Sections 10, 11 and 12 are special and unique and that the Company and its affiliates may suffer irreparable harm if Executive breaches any of Sections 10, 11, or 12 because monetary damages would be inadequate to compensate the Company and its affiliates for the breach of any of these sections.  Accordingly, Executive acknowledges and agrees that the Company shall, in addition to any other remedies available to the Company at law or in equity, be entitled to obtain specific performance and injunctive or other equitable relief by a federal or state court in Chattanooga, Tennessee to enforce the provisions of Sections 10, 11 and/or 12 without the necessity of posting a bond or proving actual damages, without liability should such relief be denied, modified or vacated.  Additionally, in the event of a breach or threatened breach by Executive of Section 11, in addition to all other available legal and equitable rights and remedies,  the Company shall have the right to cease making payments, if any, being made pursuant to Sections 9(a)(ii) and 9(b)(ii) hereunder and cease providing the continued benefits pursuant to Section 7 of this Agreement.  Executive also recognizes that the territorial, time and scope 

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limitations set forth in Section 11 are reasonable and are properly required for the protection of the Company and its affiliates, and in the event that a court of competent jurisdiction deems any territorial, time or scope limitation in this Agreement to be unreasonable, the Company and Executive agree, and Executive submits, to the reduction of any or all of said territorial, time or scope limitations to such an area, period or scope as said court shall deem reasonable under the circumstances.

	
14.
	
[Intentionally Left Blank]

	
15.
	
Miscellaneous.

	

	
(a)Any notice provided for in this Agreement (“Notice(s)”) shall be in writing and either (i) personally delivered, (ii) sent by a nationally recognized overnight courier delivery service, (iii) mailed by United States registered or certified mail, return receipt requested, postage prepaid, deposited in a United States post office or a depository for the receipt of mail regularly maintained by the post office, (iv) sent via telefax transmission or (v) sent via electronic mail.  If personally delivered, then Notices shall be effective when received as evidenced by affidavit of the person or entity making such delivery; if sent by overnight courier delivery service then Notices shall be deemed to have been received by the addressee on the next business day following the date so sent; if mailed, then Notices or other communication shall be deemed to have been received by the addressee on the date received as evidenced by the return receipt; if sent via telefax transmission, then Notices shall be deemed to have been received when received by the addressee with the burden of proving receipt to be borne by the sender; and if sent via electronic mail, then Notices shall be deemed to have been received when received by the addressee with the burden of proving receipt to be borne by the sender.  The inability to make delivery because of changed address of which no notice was given or by reason of rejection or refusal to accept delivery of any Notice shall be deemed to be receipt of the Notice as of the date of such inability to deliver or rejection or refusal to accept.

 

The addresses of the parties for Notices hereunder shall be as follows:

If to the Company:

 

CBL & Associates Management, Inc

CBL & Associates Properties, Inc. 

2030 Hamilton Place Boulevard

Suite 500, CBL Center

Chattanooga, TN 37421

Attn: HR Department

Email:  HR.Department@cblproperties.com

 

If to Executive:

 

Ben Jaenicke

[PERSONAL CONTACT INFORMATION REDACTED PER REG. S-K ITEM 601(a)(6)]

Email: [PERSONAL CONTACT INFORMATION REDACTED PER REG. S-K ITEM 601(a)(6)]

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A party may change its/hers/his notice address at any time by providing written notice thereof to the other party.

 

	

	
(b)This Agreement is personal to Executive and shall not be assigned by Executive.  Any purported assignment by Executive shall be null and void from the initial date of the purported assignment.  The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and its successors and assigns.

 

	

	
(c)This Agreement, the Initial Grant Stock Restriction Agreement and the Offer Letter as executed by the Company and Executive dated _______ (to the extent such Offer Letter contains terms that are not set forth in this Agreement) contain the entire agreement between the parties with respect to the subject matter hereof and supersede and replace all other agreements, term sheets, offer letters, and drafts thereof, oral or written, between the parties hereto with respect to the subject matter hereof. Notwithstanding the foregoing, this Agreement shall not supersede (i)  any indemnification agreement between the Company and Executive through which Executive is provided an indemnity by the Company for claims or actions against Executive in Executive’s capacity as an executive officer of the Company;  or (ii) any bonus or compensation arrangements implemented by the Company after the Effective Date.

 

	

	
(d)No amendment, modification or waiver of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, unless so provided in the waiver.

 

	

	
(e)If any provisions of this Agreement (or portions thereof) shall, for any reason, be held invalid or unenforceable, such provisions (or portions thereof) shall be ineffective only to the extent of such invalidity or unenforceability, and the remaining provisions of this Agreement (or portions thereof) shall nevertheless be valid, enforceable and of full force and effect.  If any court of competent jurisdiction finds that any restriction contained in this Agreement is invalid or unenforceable, then the parties hereto agree that such invalid or unenforceable restriction shall be deemed modified so that it shall be valid and enforceable to the greatest extent permissible under law, and if such restriction cannot be modified so as to make it enforceable or valid, such finding shall not affect the enforceability or validity of any of the other restrictions contained herein.

 

	

	
(f)Notwithstanding anything to the contrary in this Agreement:

 

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(i)The parties agree that this Agreement shall be interpreted to comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended and the regulations and authoritative guidance promulgated thereunder to the extent applicable (collectively “Section 409A”), and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.  In no event whatsoever will the Company, any of its affiliates, successors or assigns be liable for any additional tax, interest or penalties that may be imposed on Executive under Section 409A or any damages for failing to comply with Section 409A.  

 

	

	
(ii)If under this Agreement, an amount is paid in two or more installments, for purposes of Section 409A, each installment shall be treated as a separate payment.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company. 

 

	

	
(g)This Agreement will be governed by and construed in accordance with the laws of the State of Tennessee, without giving effect to any choice of law or conflict of law provision or rule.  AS A SPECIFICALLY BARGAINED INDUCEMENT FOR EACH OF THE PARTIES TO ENTER INTO THIS AGREEMENT (EACH PARTY HAVING HAD OPPORTUNITY TO CONSULT COUNSEL), EACH PARTY EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED IN THIS AGREEMENT.

 

	

	
(h)The Company shall have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation. 

 

	

	
(i)The covenants and obligations of the Company under Sections 7, 9 and 12,  hereof, and the covenants and obligations of Executive under Sections 9, 10, 11, 12 and 13 hereof, shall continue and survive termination of Executive’s employment or any termination of this Agreement for the period of time specified in this Agreement or for the period of time until the expiration of the applicable statute of limitations if no expiration is specifically stated herein. 

 

	

	
(j)This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and together constitute one and the same instrument.  To facilitate execution of this Agreement, the parties may exchange counterparts of the signature page by facsimile or electronic mail (e-mail), including, but not limited to, as an attachment in portable document format (PDF), which shall be effective as original signature pages for all purposes.

 

[signature page follows]

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

			
	
 
	
CBL & ASSOCIATES MANAGEMENT, INC.

	
 
	
By:
	
/s/ Jeffery V. Curry

	
 
	
 
	
By: Jeffery V. Curry

	
 
	
 
	
Title: Chief Legal Officer

	
 
	
 
	
 

	
 
	
EXECUTIVE

	
 
	
/s/ Benjamin W. Jaenicke

	
 
	
Name: Benjamin W. Jaenicke

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