Document:

Exhibit 10.4

 

 

 

CENTERPOINT
MANAGEMENT GROUP, LLC

MANAGEMENT INCENTIVE PLAN

 

Effective as
of March 8, 2006

 

 

 

ARTICLE 1

ESTABLISHMENT AND PURPOSE

 

CenterPoint
Management Group, LLC, a Delaware limited liability company (the “Company”),
hereby establishes the CenterPoint Management Group, LLC Management Incentive
Plan (the “MIP”), effective as of March    , 2006 (the “Effective Date”). The Company is the MIP
Unit Member (as defined in the Amended and Restated Limited Liability Company
Agreement of Solstice Holdings LLC, a Delaware limited liability company (“Solstice”))
of Solstice. The purpose of this MIP is to assist the Company and CenterPoint
Properties Trust, a Maryland real estate investment trust and a Subsidiary of
Solstice (“CenterPoint”), in attracting and retaining key employees and
to provide such persons with long-term incentives and rewards for superior
performance.

 

ARTICLE 2

DEFINITIONS

 

Capitalized
terms that are used but not defined herein shall have the meaning set forth in
the MIP Unit Member Operating Agreement.

 

2.1                                 “Allocation
Date” means the initial allocation date on or around the Effective Date and the
annual date following the close of each Solstice fiscal year selected by the
Board (commencing with the Solstice fiscal year ending June 30, 2007) on
which a grant of MIP Units shall become effective, which shall not be prior to
the date the Board takes action with respect thereto.

 

2.2                                 “Beneficiary”
means the person or persons designated by the Participant, in a writing
provided to the Company, Solstice or CenterPoint prior to the Participant’s
death, to receive amounts payable to the Participant under this MIP upon the
Participant’s death. In the absence of such a written beneficiary designation,
the Beneficiary shall be the Participant’s surviving spouse, or if none, the
Participant’s estate.

 

2.3                                 “Board”
means the board of managers of Solstice or any committee or individual duly
authorized by the board of managers of Solstice to exercise any right or perform any
obligations of the board of managers of Solstice relating to this MIP.

 

2.4                                 “CenterPoint
Management Team” means the Chief Executive Officer of CenterPoint and the Chief
Financial Officer of CenterPoint.

 

2.5                                 “Change
in Control Sale” shall have the meaning set forth in the MIP Unit Member
Operating Agreement.

 

2.6                                 “Committee”
means the Compensation Committee of Solstice, as constituted from time to time
and, to the extent of any delegation by the Board pursuant to this MIP to a
subcommittee, such subcommittee.

 

2.7                                 “Distribution
Date” means each date the Company distributes cash to a Participant pursuant to
the terms of the MIP Unit Member Operating Agreement.

 

 

2.8                                 “Employment
Agreement” means any employment agreement between a Participant and
CenterPoint, Solstice or a Subsidiary thereof.

 

2.9                                 “Final
Allocation Date” has the meaning set forth in Section 5.7.

 

2.10                           “MIP
Board” means the board of managers of the Company.

 

2.11                           “MIP
Units” shall have the meaning set forth in the MIP Unit Member Operating
Agreement.

 

2.12                           “MIP
Unit Award Agreement” means the written agreement between a Participant and the
Company evidencing the grant of a MIP Unit to the Participant and setting forth
certain terms and conditions that apply to such grant.

 

2.13                           “MIP
Unit Member Operating Agreement” means the operating agreement with respect to
the MIP Unit Member of Solstice, as amended, modified, supplemented or restated
from time to time.

 

2.14                           “MIP
Unit Sharing Percentage” shall have the meaning set forth in the MIP Unit
Member Operating Agreement.

 

2.15                           “New
Hire” means a Participant who is commencing, or has agreed to commence,
employment with CenterPoint (or as applicable, the Company, Solstice or any of
their Affiliates that adopts the MIP) after the Effective Date.

 

2.16                           “Participant”
means an employee of CenterPoint (or as applicable the Company, Solstice or any
of their Affiliates that adopts the MIP) to whom the Board has granted a MIP
Unit pursuant to the terms of this MIP and the MIP Unit Member Operating
Agreement.

 

ARTICLE 3

ADMINISTRATION OF THE MIP

 

3.1                                 Pursuant
to the terms of the MIP Unit Member Operating Agreement, the MIP Board has
delegated to the Board, subject to Section 3.2 below, full and sole
authority to administer this MIP.

 

3.2                                 With
respect to any determinations to be made pursuant to the provisions of Articles
4 and 5, the CenterPoint Management Team shall make recommendations to the
Board, and the Board may approve or request that the CenterPoint
Management Team revise such recommendation. To the extent the Board requests that
the CenterPoint Management Team revise such recommendation, and until a revised
recommendation is approved by the Board, the CenterPoint Management Team will
have a period not to exceed thirty (30) days from the date the initial
recommendation is presented to the Board (the “Recommendation Period”)
to provide revised recommendations for approval by the Board. The Board shall
convene as often as reasonably required during the Recommendation Period. To
the extent the Board has not approved a recommendation from the CenterPoint
Management Team on or prior to the expiration of the Recommendation Period, the
Committee shall make a recommendation to the Board, after advising the
CenterPoint Management Team of such recommendation, and the

 

2

 

Board shall make and approve
any determination it considers necessary or appropriate, in its sole
discretion.

 

3.3                                 The
Board may from time to time reserve a specified number of MIP Units,
subject to adjustment as provided in Section 10.4 of this MIP, for grants
to New Hires with respect to commencement of their employment with CenterPoint
(or as applicable the Company, Solstice or any of their Affiliates that adopts
the MIP) or to any Participant in connection with a promotion or other form of
special recognition Approved in writing by the Board.

 

3.4                                 Subject
to Section 3.2, the Board shall have full authority regarding all matters
relating to the discharge of its responsibilities under this MIP, and the
interpretation and construction by the Board of the provisions of this MIP, or
any MIP Unit Award Agreement, shall be made in the sole discretion of the Board
and shall be final and conclusive.

 

3.5                                 The
Board may delegate to the Committee, to one or more subcommittees of the Committee,
to one or more of its members, or to one or more officers of the Company or
CenterPoint, or to one or more agents or advisors, such administrative duties
or powers as it may deem advisable, and the Board, the Committee, or any
person to whom duties or powers have been delegated as aforesaid, may employ
one or more persons to render advice with respect to any responsibility the
Board, the Committee or such person may have under this MIP.

 

ARTICLE 4

ELIGIBILITY

 

The Board may authorize
grants of MIP Units under this MIP to Participants upon such terms and
conditions as the Board may determine and pursuant to and in accordance
with the MIP Unit Member Operating Agreement and the MIP. Each employee
identified on Appendix A shall be a Participant as of the later of the
Effective Date and the date he or she executes the MIP Unit Award Agreement
evidencing the grant set forth on Appendix A. On or before each Allocation
Date, the Board shall designate such other employees who shall be Participants,
including New Hires.

 

ARTICLE 5

GRANTS OF MIP UNITS

 

5.1                                 The
maximum number of MIP Units that may be granted under this MIP (including
the up to 3,880 MIP Units that may be granted as of the Effective Date
under Section 5.2) shall not exceed an aggregate of 10,000 MIP Units.

 

5.2                                 As
of the Effective Date, the Board shall grant to each Participant selected to
receive a grant of MIP Units as of the Effective Date based on such Participant’s
(i) cash investment in Solstice, if any, and (ii) position and title
with respect to the Participant’s employment by CenterPoint. The total MIP
Units to be granted as of the Effective Date shall not exceed 3,880 MIP Units.

 

5.3                                 Before
each Allocation Date, the Board shall designate the number of MIP Units to be
granted to each Participant on such Allocation Date in whole or fractional MIP
Units and not to exceed the maximum MIP Units available for grant during such
fiscal year as set forth in

 

3

 

Section 5.4.            On each Allocation Date, the Board
shall grant to each Participant the number of MIP Units so designated.

 

5.4                                 As
of the Effective Date and on each Allocation Date following the fiscal years
identified below, the Board may grant to all Participants, including any
New Hires, a total number of MIP Units not to exceed the following maximums for
each fiscal year, as set forth below; provided, however, that to
the extent that the Board does not grant the maximum MIP Units available to be
granted on an Allocation Date, the number of remaining MIP Units that is the
excess of the maximum MIP Units available to be granted minus the amount of MIP
Units actually granted on such Allocation Date shall be cancelled.

 

	
  FISCAL YEAR

  	
   

  	
  MAXIMUM MIP UNITS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  As of the
  Effective Date

  	
   

  	
  3,880

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  1: (July 1, 2006 – June 30, 2007)

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  2: (July 1, 2007 – June 30, 2008)

  	
   

  	
  1,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  3: (July 1, 2008 – June 30, 2009)

  	
   

  	
  1,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  4: (July 1, 2009 – June 30, 2010)

  	
   

  	
  1,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  5: (July 1, 2010 – June 30, 2011)

  	
   

  	
  1,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  6: (July 1, 2011 – June 30, 2012)

  	
   

  	
  550

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  7: (July 1, 2012 – June 30, 2013) 

  	
   

  	
  550

  	
    

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  8: (July 1, 2013 – June 30, 2014)

  	
   

  	
  206.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  9: (July 1, 2014 – June 30, 2015)

  	
   

  	
  206.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  10: (July 1, 2015 – June 30, 2016)

  	
   

  	
  206.25

  	
   

  

 

5.5                                 Each
MIP Unit granted under this MIP shall be subject to the terms and conditions of
this MIP and the MIP Unit Member Operating Agreement and shall be evidenced

 

4

 

by a MIP Unit Award Agreement
which shall set forth, along with the MIP Unit Member Operating Agreement and
the Participant’s Employment Agreement, as applicable, the terms and conditions
that shall apply to the grant of a MIP Unit, as determined by the Board.

 

5.6                                 Upon
issuance of a grant of MIP Units, to the extent a Participant has not already
executed the signature page of the MIP Unit Member Operating Agreement or
an addendum thereto, such Participant shall sign an addendum to the MIP Unit
Member Operating Agreement agreeing to be bound by the provisions of the MIP
Unit Member Operating Agreement.

 

5.7                                 The
term of this MIP shall expire effective as of, and no grant will be made under
this MIP after the grant(s) made on, the Allocation Date for the fiscal year
commencing July 1, 2015 (the “Final Allocation Date”), if any; provided,
however, that all grants made on or prior to the Final Allocation Date
will continue in effect thereafter subject to the terms of the Participant’s
Employment Agreement, if any, the MIP Unit Award Agreement, the MIP Unit Member
Operating Agreement and this MIP.

 

ARTICLE 6

FORFEITURE AND NONTRANSFERABILITY

 

6.1                                 Subject
to Article 8 and Section 6.4, any vesting or risk of forfeiture that
applies to a Participant’s MIP Units, including in the event of a Change in
Control, shall be set forth in the Participant’s Employment Agreement or MIP
Unit Award Agreement, as applicable.

 

6.2                                 Prior
to the occurrence of a Change in Control Sale, each MIP Unit that is forfeited
in connection with a Participant’s termination of employment may be
granted to any other Participant on the Allocation Date that next follows the
date the MIP Unit is forfeited; provided, however, that any
forfeited MIP Unit that is not reallocated and granted to another Participant
on the next following Allocation Date shall be cancelled. In the event of a
Change in Control Sale, the MIP Units will be subject to the terms of Article 8.

 

6.3                                 Except
for transfers in connection with forfeiture or redemption, or as otherwise
provided in the MIP Unit Member Operating Agreement, no Participant may sell,
exchange, transfer, pledge, hypothecate, or otherwise dispose of any MIP Unit
which he or she has been granted without the prior approval of the Board and
any attempted transfer without such approval shall be void ab
initio.

 

6.4                                 Except
as otherwise provided in this MIP, the MIP Unit Member Operating Agreement, a
Participant’s Employment Agreement, if any, or a Participant’s MIP Unit Award
Agreement, if a Participant’s employment with the CenterPoint (or as applicable
the Company, Solstice or any Affiliate that adopts the MIP) is terminated for
any reason prior to a Distribution, the Participant shall immediately forfeit
all MIP Units to which the Participant has been allocated. Upon such
forfeiture, the Participant will not be entitled to any further payments and
will have no further rights under this MIP.

 

5

 

ARTICLE 7

DISTRIBUTIONS AND REDEMPTIONS

 

7.1                                 Each
Participant shall be entitled to receive Distributions of Distributable Cash in
accordance with his or her MIP Unit Sharing Percentage pursuant to the MIP Unit
Member Operating Agreement; provided, however, that any MIP Units
granted on or after the valuation determination date for which a Distribution
is to be made shall not be included in any Participant’s MIP Unit Sharing
Percentage for purposes of determining such payment.

 

7.2                                 The
Company shall redeem a Participant’s MIP Units at such times and under such
circumstances as are specified in the MIP Unit Member Operating Agreement.

 

ARTICLE 8

CHANGE IN CONTROL SALE

 

Upon a Change
in Control Sale, (i) there shall be no further issuance, allocation or
grant, or reissuance, reallocation or regrant of any MIP Units issued under
this MIP, whether pursuant to this MIP or otherwise, (ii) all issued and
outstanding MIP Units issued under this MIP will no longer be subject to
forfeiture (except as provided in a Participant’s Employment Agreement, if any,
in connection with termination of the Participant’s employment for Cause (as
defined in the Participant’s Employment Agreement)) and (iii) the Company’s
obligations under this MIP shall continue as herein provided until the term of
the MIP expires pursuant to Section 5.7.

 

ARTICLE 9

AMENDMENT

 

The terms and
conditions set forth in this document may be altered, modified, amended or
waived only upon the affirmative vote of at least sixty-six percent (66%) of
the Participants. The provisions of this MIP which are set forth in the MIP
Unit Member Operating Agreement may only be altered, modified or waived
pursuant to the MIP Unit Member Operating Agreement.

 

ARTICLE 10

MISCELLANEOUS

 

10.1                           The
Company may issue fractional MIP Units pursuant to this MIP. The Board may also
provide for the elimination of fractions or for the settlement thereof in cash.

 

10.2                           To the
extent that the Company is required to withhold federal, state, local or
foreign taxes in connection with any payment made or benefit realized by a
Participant or other person under this MIP, and the amounts available to the
Company for the withholding are insufficient, it shall have the right to
require the Participant or the Participant’s Beneficiary to remit to the
Company an amount sufficient to satisfy all federal, state and local
withholding tax requirements in connection with any payment made or benefit
realized by the Participant or the Participant’s Beneficiary in connection with
an award under this MIP. The Board may make mutually agreed-upon
arrangements with the Participant or the Participant’s Beneficiary for the

 

6

 

satisfaction of such required
withholding liability, which may include, but not be limited to, the
relinquishment of any MIP Unit.

 

10.3                           If the
Company is obligated to pay any amount to a governmental agency (or otherwise
makes a payment to a governmental agency) because of (A) a Participant’s
status or otherwise specifically attributable to a Participant in his or her
capacity as a Participant with respect to federal, state or local withholding
taxes imposed with respect to (i) any issuance of MIP Units to a
Participant by the Company or (ii) any payments to a Participant or (B) a
Participant’s breach of the MIP Unit Member Operating Agreement or violation of
any law, rule or regulation in his, her or its capacity as a Participant,
then the Company shall reduce the Distributions that would otherwise be made to
such Participant or if such Distributions are insufficient to pay such
obligation such Participant shall, to the fullest extent permitted by law,
indemnify the Company in full for the entire amount paid (including, without
limitation, any interest, penalties and expenses associated with such
payments).

 

10.4                           The
Board may make or provide for adjustments in the number of MIP Units
granted hereunder or substitution of the MIP Units for other fair, equitable
and valuable consideration as may be required in order to prevent dilution
or expansion of the rights of a Participant that otherwise would result from
any (i) dividend, Membership Interest split, combination of Membership
Interests, recapitalization or other change in the capital structure of the
Company; (ii) any merger, consolidation, spin-off, spin-out, split-off,
split-up, reorganization, partial or complete liquidation; or (iii) other
distribution of assets, issuance of warrants or other rights to purchase
securities, or any other corporate transaction or event having any effect
similar to any of the foregoing.

 

10.5                           Except
as otherwise provided in the MIP Unit Member Operating Agreement or in any MIP
Unit Award Agreement, the granting of a MIP Unit shall not be construed as
conferring upon a Participant any right to participate in the management of the
business and affairs of the Company and any Subsidiary or Affiliate of the
Company. The granting of a MIP Unit shall confer upon the Participant only
those rights set forth in the MIP Unit Member Operating Agreement, this MIP and
any applicable MIP Unit Award Agreement and Employment Agreement.

 

10.6                           The MIP
shall be binding upon and shall inure to the benefit of the Company and any
successor. The Company may assign its obligations and delegate its duties
under this MIP to a Subsidiary of the Company, Solstice or CenterPoint.

 

10.7                           The MIP
shall not constitute a contract of employment between the Participant and any
other person or entity and shall not interfere with any person’s or entity’s
right to discharge a Participant without prior notice at any time and for any
reason, subject to any applicable Employment Agreement.

 

10.8                           Any
waiver or consent, express or implied, to or of any breach by any Person in the
performance by that Person of its obligations hereunder is not a consent or
waiver to or of any other breach in the performance by that Person of the same
or any of the obligations of that Person hereunder. Failure on the part of
a Person to complain of any act of any Person

 

7

 

irrespective of how long that
failure continues, does not constitute a waiver by that Person of its rights
with respect to that failure until the applicable statute-of-limitations period
has run.

 

10.9                           Any
reference in this MIP to the singular includes the plural where appropriate,
and any reference in this MIP to the masculine gender includes the feminine and
neuter genders where appropriate.

 

10.10                     The laws of
the State of Delaware (without giving effect to its conflicts of law
principles) govern all matters arising out of or relating to the MIP. In the
event of a direct conflict between the provisions of the MIP and any mandatory
provision of the Act, the applicable provision of the Act shall control.

 

10.11                     If any
provision of this MIP is or becomes invalid, illegal or unenforceable in any
jurisdiction, or would disqualify this MIP or any award under any law deemed
applicable by the Board, the Board shall replace each invalid, illegal or
unenforceable provision with a valid, legal and enforceable provision which
will most nearly and equitably satisfy the economic effect of the invalid,
illegal or unenforceable provision.

 

10.12                     The MIP shall
be unfunded and shall not create (or be construed to create) a trust or
separate fund.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

*   *   *  
*   *

 

8

 

APPENDIX A

MIP UNIT GRANTS AS OF THE EFFECTIVE DATE

 

The Board
shall grant to the following employees a number of MIP Units as set forth in
each such employees’ MIP Unit Award Agreement, not to exceed an aggregate
amount of 3,800 MIP Units.

 

1.                                       [NAME
AND TITLE]

 

2.                                       [NAME
AND TITLE]

 

3.                                       [NAME
AND TITLE]

 

4.                                       [NAME
AND TITLE]

 

5.                                       [NAME
AND TITLE]

 

6.                                       [NAME
AND TITLE]

 

7.                                       [NAME
AND TITLE]

 

8.                                       [NAME
AND TITLE]

 

9.                                       [NAME
AND TITLE]

 

10.                                 [NAME
AND TITLE]

 

11.                                 [NAME
AND TITLE]

 

12.                                 [NAME
AND TITLE]

 

13.                                 [NAME
AND TITLE]

 

14.                                 [NAME
AND TITLE]

 

9Exhibit 10.5

 

CENTERPOINT MANAGEMENT GROUP, LLC

MANAGEMENT INCENTIVE PLAN

 

MIP Unit Award Agreement

 

 

WHEREAS, CenterPoint Management Group, LLC, a Delaware limited
liability company (the “Company”), has established the CenterPoint
Management Group, LLC Management Incentive Plan (the “MIP”), effective
as of March       , 2006, to assist in
attracting key employees of or on behalf of CenterPoint Properties Trust (“CenterPoint”),
a Maryland real estate investment trust and a Subsidiary of Solstice Holdings
LLC, a Delaware limited liability company (“Solstice”), and to provide
the Grantee with long-term incentives and rewards for superior performance;

 

WHEREAS, the Company is the MIP Unit Member of Solstice (as defined in
the Amended and Restated Limited Liability Company Agreement of Solstice);

 

WHEREAS,                       (the
“Grantee”) is an employee of CenterPoint and
has made and is expected to continue to make major contributions to the
short-term and long-term profitability, growth and financial strength of
CenterPoint;

 

WHEREAS, the Company, CenterPoint and the Grantee are parties to an
employment agreement dated March       ,
2006 (the “Employment Agreement”);

 

WHEREAS, the execution of this MIP Unit Award Agreement in the favor of
the Grantee in the form hereof (this “Agreement”) has been
authorized by a resolution of the Board or, as authorized by the Board, the
Committee that was duly adopted effective as of
                     
(the “Date of Grant”).

 

NOW, THEREFORE, subject to the terms and conditions of the MIP Unit
Member Operating Agreement, the MIP, the Employment Agreement and as
hereinafter set forth, the Company hereby grants to the Grantee                    
MIP Units.

 

1.                                       Capitalized
Terms. Capitalized terms used in this Agreement are defined in either the
MIP, Grantee’s Employment Agreement or the MIP Unit Member Operating Agreement,
as applicable.

 

2.                                       Forfeiture
of MIP Units.

 

(a)                                  The Grantee shall
forfeit the MIP Units awarded under this Agreement upon termination of
employment under circumstances specified in the Employment Agreement.

 

(b)                                 Notwithstanding any of
the provisions of Section 2 hereof, the Board (or as delegated by the
Board, the Committee) may accelerate the vesting of the Grantee’s MIP
Units awarded hereunder in connection with the termination of the Grantee’s
employment.

 

 

3.                                       Distributions.

 

(a)                                  During Employment.
Provided that the Grantee remains in the continuous employ of CenterPoint, the
Grantee shall be eligible to receive such Grantee’s allocable share of Distributions
with respect to the MIP Units awarded hereunder as and when provided under the
MIP Unit Member Operating Agreement based on the Grantee’s MIP Unit Sharing
Percentage.

 

(b)                                 Following
Termination of Employment. To the extent the Grantee’s employment is
terminated prior to a Change in Control (i) by CenterPoint without Cause, (ii) by
the Grantee for Good Reason, (iii) in connection with non-renewal of the
Grantee’s Employment Agreement, (iv) by the Grantee without Good Reason
after the Initial Payout Date or (v) due to the Grantee’s death or
Disability, the Grantee (or the Grantee’s Beneficiary in the event of the
Grantee’s death) shall be only entitled to receive an allocable share of any
Distribution, if any, attributable to such Grantee’s vested MIP Units on the
earlier of the next Distribution Date on which a Distribution is made to MIP
Unit Members or the next Scheduled Liquidity Event date. Following such payment
the Grantee (or such Grantee’s Beneficiary in the event of the Grantee’s death)
will not be entitled to any further payments with respect to the MIP Units
awarded hereunder and will have no further rights under the MIP, and all MIP
Units held by such Grantee shall be immediately forfeited.

 

(c)                                  Following a Change
in Control. The MIP Units awarded hereunder shall vest and become
nonforfeitable upon the occurrence of a Change in Control. The Grantee shall be
entitled to Distributions with respect to such vested MIP Units on and after
the Change in Control and on and after a termination of employment, other than
a termination for Cause, pursuant to the terms of the MIP, the MIP Unit Member
Operating Agreement and this Agreement. Such vested MIP Units shall otherwise
remain subject to the terms of the MIP, the MIP Unit Member Operating Agreement
and this Agreement; provided, however, that, upon a termination
for Cause as provided in the Grantee’s Employment Agreement, all MIP Units
(whether vested or unvested) held by Grantee shall be immediately forfeited,
and Grantee will not be entitled to any further payments or Distributions and
will have no further rights under the MIP on and after the termination of
employment.

 

4.                                       Transferability.
Except as otherwise permitted by the MIP Unit Member Operating Agreement, or
unless and until forfeited pursuant to the Grantee’s Employment Agreement or
redeemed by the Company pursuant to the MIP Unit Member Operating Agreement,
the Grantee may not sell, exchange, transfer, pledge, hypothecate, or
otherwise dispose of the MIP Units awarded hereunder without the prior Approval
of the Board and any attempted transfer without such Approval shall be void ab initio.

 

5.                                       MIP
Unit Member Operating Agreement. The Grantee acknowledges and agrees that
the MIP Units awarded hereunder are subject to the terms and conditions of the
MIP Unit Member Operating Agreement. The Grantee further acknowledges and
agrees that, to the extent the Grantee has not already executed the MIP Unit
Member Operating Agreement or an addendum thereof, the Grantee will be required
to sign the addendum to the MIP Unit Member

 

2

 

Operating Agreement, attached hereto as Exhibit A,
agreeing to be bound by the terms and conditions of the MIP Unit Member
Operating Agreement as a condition to receiving the MIP Units awarded
hereunder.

 

6.                                       Compliance
with Law. The Company shall comply with all applicable laws and regulations
of any duly constituted authority having jurisdiction over the issuance of the
MIP Units to the Grantee as contemplated herein; provided, however,
that notwithstanding any other provision of this Agreement, the Company shall
not be obligated to issue any MIP Units hereunder if the issuance thereof would
result in a violation of any such law or regulation.

 

7.                                       Withholding
Taxes.

 

(a)                                  To
the extent that the Company, Solstice or CenterPoint is required to withhold
federal, state, local or foreign taxes in connection with any payment made or
benefit realized by the Grantee or other person under this Agreement, and the
amounts available to the Company for the withholding are insufficient, it shall
have the right to require the Grantee or the Grantee’s Beneficiary to remit to
the Company, Solstice or CenterPoint an amount sufficient to satisfy all
federal, state and local withholding tax requirements in connection with any
payment made or benefit realized by the Grantee or the Grantee’s Beneficiary in
connection with this award. The Board may make mutually agreed-upon
arrangements with the Grantee or the Grantee’s Beneficiary for the satisfaction
of such required withholding liability, which may include, but not be
limited to, the relinquishment of any MIP Unit.

 

(b)                                 If
the Company is obligated to pay any amount to a governmental agency (or
otherwise makes a payment to a governmental agency) because of (A) the
Grantee’s status or otherwise specifically attributable to the Grantee in his
or her capacity as a Grantee with respect to federal, state or local
withholding taxes imposed with respect to (i) any issuance of MIP Units to
the Grantee by the Company or (ii) any payments to a Grantee or (B) a
Grantee’s breach of the MIP Unit Member Operating Agreement or violation of any
law, rule or regulation in his, her or its capacity as a Grantee, then the
Company shall reduce the Distributions that would otherwise be made to the
Grantee or if such Distributions are insufficient to pay such obligation such
Grantee shall, to the fullest extent permitted by law, indemnify the Company in
full for the entire amount paid (including, without limitation, any interest, penalties
and expenses associated with such payments).

 

8.                                       Continuation
of Employment. Neither this Agreement nor any action taken hereunder shall
be construed as giving the Grantee any right to continued employment with
CenterPoint, nor shall this Agreement or any action taken hereunder be
construed as entitling CenterPoint to the services of the Grantee for any
period of time. For the purposes of this Agreement, the continuous employment
of the Grantee with CenterPoint shall not be deemed interrupted, and the
Grantee shall not be deemed to have ceased to be employed by CenterPoint by
reason of the transfer of his employment among CenterPoint, Solstice, the
Company or a Subsidiary or Affiliate of CenterPoint, Solstice or the Company
that adopts the MIP.

 

9.                                       Limited
Rights. Except as otherwise provided in the MIP Unit Member Operating
Agreement and as set forth in the Employment Agreement, the granting of the MIP
Units hereunder shall not confer upon the Grantee any right to participate in
the management of

 

3

 

the business and affairs of the Company or
any Subsidiary or Affiliate of the Company. The granting of the MIP Units
hereunder shall confer upon the Grantee only those rights set forth in the MIP
Unit Member Operating Agreement, the MIP, the Employment Agreement and this
Agreement.

 

10.                                 Unfunded
Plan. The MIP shall be unfunded and shall not create (or be construed to
create) a trust or separate fund.

 

11.                                 Amendments.
Any amendment to the MIP shall be deemed to be an amendment to this Agreement
to the extent that the amendment is applicable hereto; provided, however,
that no amendment shall adversely affect the rights of the Grantee hereunder
under any vested MIP Units without the Grantee’s consent.

 

12.                                 Successors
and Assigns. This Agreement shall be binding upon, and shall inure to the
benefit of the Company and any successor or assign. The Company may assign
and transfer this Agreement, and delegate its duties hereunder, to a Subsidiary
of CenterPoint, Solstice or the Company, subject to the MIP.

 

13.                                 Severability.
In the event that one or more of the provisions of the MIP or this Agreement
becomes invalid, illegal or unenforceable in any jurisdiction, or would
disqualify the MIP, this Agreement or the MIP Units under any law deemed
applicable by the Board, the Board shall replace each invalid, illegal or
unenforceable provision with a valid, legal and enforceable provision which
will most nearly and equitably satisfy the economic effect of the invalid, illegal
or unenforceable provision.

 

14.                                 Governing
Law. This Agreement is made in, and shall be construed in accordance with,
the laws of the State of Delaware.

 

15.                                 Agreement
Subject to MIP. The MIP Units granted under this Agreement and all of the
terms and conditions hereof are subject to all of the terms and conditions of
the MIP. In the event of any inconsistency between this Agreement and the MIP,
the terms of the MIP will govern.

 

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This Agreement
is hereby executed by the Company on this             
day of                 ,
2006.

 

	
   

  	
  CenterPoint
  Management Group, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
				

 

 

This Agreement
is hereby executed by the undersigned Grantee this                    
day of             
2006. The Grantee hereby acknowledges receipt of an executed original of this
Agreement and accepts this award of MIP Units, subject to the terms and
conditions of the MIP, the MIP Unit Member Operating Agreement
and the terms and conditions set forth above. The Grantee further
acknowledges and agrees that, to the extent Grantee has not already executed
the MIP Unit Member Operating Agreement or an addendum thereof, the Grantee
will be required to sign the addendum to the MIP Unit Member Operating
Agreement, attached hereto as Exhibit A, agreeing to be bound by
the terms and conditions of the MIP Unit Member Operating Agreement as a
condition to receiving the MIP Units awarded hereunder.

 

	
   

  	
   

  	
   

  
	
   

  	
  Grantee

  
	
   

  	
   

  
	
   

  	
  Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]