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EXHIBIT 10.6  

 
 

BROOKFIELD HOMES CORPORATION
  DEFERRED SHARE UNIT PLAN    
  

1.    PURPOSE  

        The purpose of the Brookfield Homes Corporation Deferred Share Unit Plan is to provide executives of the Corporation or its Subsidiaries, compensation
opportunities that are consistent with shareholder interests. 

2.    DEFINITIONS  

        The following terms, when used in the Plan, shall have the respective meanings set forth below, unless the context specifically requires otherwise. 

	

Corporation:	
 	

Brookfield Homes Corporation
	

Beneficiary:	
 	

A dependent or relation of the Executive.
	

Committee:	
 	

The Compensation Committee of the Board of Directors of the Corporation.
	

Fiscal Year:	
 	

The Corporation's Fiscal Year. The Corporation currently has a Fiscal Year end of December 31.
	

Notification Date:	
 	

The date during the year when the bonus is awarded for the prior year.
	

Participant:	
 	

An Executive who participates in the Plan.
	

Plan:	
 	

Brookfield Homes Corporation Deferred Share Unit Plan as set forth herein.
	

Executive:	
 	

A designated senior executive of the Corporation or a Subsidiary.
	

Share:	
 	

A share of common stock of Brookfield Homes Corporation.
	

Subsidiary:	
 	

A subsidiary of the Corporation.
	

NYSE:	
 	

The New York Stock Exchange.
	

Units:	
 	

The deferred share units issued to Participants in accordance with sections 6 and 8 of the plan.

3.    INTERPRETATION  

        This Plan is intended to qualify as a "prescribed plan" as defined in paragraph 6801 (d) of the Income Tax Regulations under the Income
Tax Act (Canada). As a result, the value of Units granted under the Plan, including dividend equivalents, will not be included in a Participant's income until the year the Units are redeemed.
This Plan is intended to qualify as an unfunded ERISA pension plan maintained by an employer for a select group of management or highly compensated employees. 

4.    ADMINISTRATION  

	(a)
	The
Plan shall be administered by the Committee and the Corporation will be responsible for all costs relating to the administration of the Plan.

	(b)
	The
Committee is authorized, subject to the provisions of the Plan, to establish such rules and regulations as it deems necessary for the proper administration of the Plan and to make
determinations and take such other action in connection with or in relation to the Plan as it deems necessary or advisable. Each determination or action made or taken pursuant to the Plan, including
interpretation of the Plan, shall be final and conclusive for all purposes and binding upon all parties. 

5.    ELIGIBILITY  

        Designated Executives are eligible to participate. 

 

6.    ELECTION OF PARTICIPANTS  

	(a)
	Participants
will have the option to elect each year to receive all or a portion of their Management Incentive Plan (MIP) bonus to which they may be entitled in the form of Units.

	(b)
	The
portion of the MIP bonus allocated to the Plan will be increased at the discretion of the Committee by a factor of up to two when calculating the number of Units granted.

	(c)
	A
Participant must indicate his/her decision to participate in the Plan during the first quarter of the fiscal year with respect to the MIP bonus for that Fiscal Year other than the
first year when such decision is required before the end of the fourth quarter of that Fiscal Year.

	(d)
	Once
the election is made to participate, it is irrevocable with respect to the MIP bonus for that Fiscal Year. 

7.    DEFERRED SHARE UNITS  

	(a)
	There
will be no Shares issued, authorized, reserved, purchased or sold at any time in connection with Units allocated under the Plan.

	(b)
	Under
no circumstances will Units be considered Shares, or entitle any Participant to the exercise of voting rights or to the exercise of any other rights arising from the ownership
of Shares.

	(c)
	No
certificates will be issued with respect to the Units.

	(d)
	One
(1) Unit is notionally equivalent to one (l) Share. Fractional Units are permitted under the Plan.

	(e)
	In
no event may the rights or interest of a Participant be assigned, encumbered or transferred, except to the extent that rights may pass to a Beneficiary or legal representative of a
Participant pursuant to the terms of the Plan upon the death of a Participant. 

8.    ALLOTMENT OF THE DEFERRED SHARE UNITS  

	(a)
	Following
the end of the Fiscal Year, once MIP bonuses have been determined, the adjusted dollar value of the portion of the MIP bonus allocated to the Plan will be divided by the
closing price of a Share on the NYSE on the Notification Date.

	(b)
	Additional
Units will be allotted to participants to reflect dividends paid on an equivalent number of Shares to the total Units held at the time of payment. The number of additional
Units will be determined by dividing the dollar value of the notional dividends by the closing price of a Share on the NYSE on the dividend payment date.

	(c)
	The
Corporation and its Subsidiaries, and their directors and officers, shall not be liable to any Participant, Beneficiary or legal representative for any decrease in the value of
Units that may occur. Any Participant, Beneficiary or legal representative will not be entitled, either immediately or in the future, absolutely or contingently, to receive or obtain any amount or
benefit designed to reduce the impact of any reduction in the fair market value of the Shares. 

9.    VESTING  

	(a)
	The
Units will vest over five years at the end of each year, ratably, except as indicated below.

	(b)
	In
the event of termination of a Participant by the Corporation or a Subsidiary within five years of an allotment of Units, the Participant will be eligible to all vested Units and
50% of any unvested Units at that time.

	(c)
	In
the event of death, all Units held by a Participant become fully vested. 

2

 

10.  DESIGNATION OF A BENEFICIARY  

        The Participant may designate a Beneficiary who will be entitled to receive all amounts that may be received under the Plan after the Participant's death. If no
Beneficiary is designated, the legal representative of the Participant will be entitled to receive such amounts. 

11.  REDEMPTION OF THE DEFERRED SHARE UNITS  

	(a)
	Vested
Units can only be redeemed after cessation of employment whether due to termination, retirement or death, which is hereafter referred to as Retirement.

	(b)
	In
the event of death, a Participant's designated Beneficiary, or legal representative, as the case may be, shall be entitled to redeem the Units.

	(c)
	Redemption
of the Units must take place no later than 12 months following Retirement, by written notice delivered by the Participant, or his legal representative, to the
Committee (the "Notice of Redemption") or if no such Notice of Redemption is received, on the first anniversary of the Retirement.

	(d)
	The
value of the Units on redemption will be based on the closing price of a common share of the Corporation on the NYSE on the date the Notice of Redemption is received by the
Committee or if no such Notice is received, on the first anniversary of the Retirement. The value of the Units will be paid in cash less applicable statutory deductions and tax withholdings as
determined by the Committee. 

12.  ADJUSTMENTS  

        Appropriate adjustments will be made by the Committee, with respect to the number of Units, in order to adjust for the effect of subdivision or consolidation of
the Corporation's common shares, payment of dividends in stock (other than normal dividends), reclassification or conversion of the Shares, recapitalization, reorganization, capital distribution or
any other event which, in the judgement of the Committee justifies action by way of adjustment to the number of Units. 

13.  AMENDMENT OR TERMINATION  

        The Committee may amend, suspend or terminate the Plan at any time and in such manner and to such extent as it deems advisable. No such amendment, suspension or
termination shall materially adversely affect the rights of a Participant in respect of Units granted prior to the date of such amendment, suspension or termination. 

3

 
 
 

BROOKFIELD HOMES CORPORATION
  DEFERRED SHARE UNIT PLAN TERM SHEET    
  

	
Purpose:	
 	

To provide senior executives with the ability to defer bonuses and invest the amounts in share units of the company on a pre-tax basis.
	
Eligibility:	
 	

Designated senior executives.
	
Participation:	
 	

Voluntary, up to 100% of the bonus to be deferred on an annual basis.
	
Enhanced Bonus:	
 	

Bonus to be increased by up to two times with the number of share units allocated based on the price on day of the award.
	
Vesting:	
 	

Over 5 years, at the end of each year, ratably.
	
Redemption:	
 	

Vested portion to be redeemed on cessation of employment — defined as retirement, death or resignation.
	
Administration:	
 	

Compensation Committee

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BROOKFIELD HOMES CORPORATION DEFERRED SHARE UNIT PLAN

BROOKFIELD HOMES CORPORATION DEFERRED SHARE UNIT PLAN TERM SHEET<PAGE>

                                                                  Exhibit 10.1

                               October 8, 2002

Charles D. Molloy, Jr.
986 Barnard College Lane
University City, Missouri 63130

Dear Charley:

         The purpose of this letter is to set forth the terms of your
continued employment by Angelica. These terms of employment will remain in
effect until such time as Angelica has determined, to its satisfaction, that
the transition activities relating to the sale of its Manufacturing and
Marketing business segment are substantially complete, or until any earlier
termination of your employment by Angelica.

         1.       EMPLOYMENT AT WILL - To whatever extent your employment by
                  ------------------
                  Angelica may continue, it will do so on an at-will basis.
                  Your employment may be terminated immediately at any time
                  by Angelica, with or without cause, upon 30 days prior
                  notice.

         2.       COMPENSATION - During your continued employment, your base
                  ------------
                  salary will be $16,666.66 per month ($200,000.00 annualized),
                  payable in accordance with Angelica's current payroll
                  practices. Except as otherwise provided in this letter, you
                  will continue to be eligible to participate in such other
                  compensation and benefit plans and programs generally
                  available to other similarly situated executives of Angelica,
                  including participation in Angelica's: Performance Plan
                  (stock options); Retirement Savings Plan (401k); Pension
                  Plan; and Supplemental Plan. You will not be eligible to
                  participate in any incentive compensation plans. It is
                  understood that Angelica may, at any time and in its sole
                  discretion, eliminate, amend, modify or replace any such
                  plan(s).

         3.       DUTIES - You will continue to serve as Vice President of
                  ------
                  Angelica Corporation and as President of Angelica's
                  Manufacturing and Marketing Business Segment (i.e.
                  Angelica Image Apparel and the Canadian operations).
                  However, your duties, authority, title and
                  responsibilities (including, but not limited to, your
                  status, offices and reporting

<PAGE>
<PAGE>

Charles D. Molloy, Jr.
Page 2
October 8, 2002

                  requirements), may be changed and/or diminished by Angelica,
                  in its sole discretion, at any time and from time to time,
                  with or without cause.

                  It is understood that Angelica has sold assets of its
                  Manufacturing and Marketing Business Segment and it is
                  agreed that your support, cooperation and assistance is
                  important to completing the successful transition
                  activities relating to those transactions so as to
                  optimize the proceeds realized by Angelica from the sale
                  and from the disposition of assets not included in the
                  sale. Accordingly, the duties and responsibilities of your
                  employment will include your full support of, as well as
                  your cooperation and assistance with Angelica's efforts to
                  complete those transition activities in a manner that
                  achieves those objectives.

         4.       SEPARATION PAYMENTS - If your employment is terminated by
                  -------------------
                  Angelica without good cause, then subject to the provisions
                  of paragraph 6 below, Angelica will pay you separation
                  payments equal to six (6) months base salary. Also, Angelica
                  will pay you further separation payments equal to an
                  additional six (6) months base salary, provided, however,
                  that these further payments during this additional six (6)
                  month period will be reduced by any amounts earned by you
                  from other employment or other services you may perform
                  during that period. All of these amounts will be paid in
                  equal, semi-monthly payments, less applicable taxes,
                  withholdings and standard deductions. To the extent that the
                  obligation to pay said amounts arises hereunder, such
                  obligation will survive the termination of your employment
                  until such time as said amounts have been paid. For so long
                  as such separation payments continue you will make yourself
                  reasonably available to Angelica for purposes of occasional
                  consultation regarding matters with which you were involved
                  during your employment.

                  For purposes of this letter, "good cause" means: (i) your
                  continued failure to substantially perform your duties
                  with Angelica, including those identified in paragraph 3
                  above, (other than as a result of incapacity due to
                  physical or mental condition); (ii) your commission of an
                  act constituting a criminal offense involving moral
                  turpitude, dishonesty or breach of trust; or (iii) your
                  failure to fulfill or comply with any material term of
                  your employment. You will not be entitled to any
                  separation payments if your employment is terminated by
                  you for any reason, or by Angelica with good cause.

         5.       INCENTIVE FEE - If your employment is terminated by
                  -------------
                  Angelica without good cause, Angelica will pay you, in
                  addition to any separation payments provided for in
                  paragraph 4 above, an incentive payment of $100,000, less
                  applicable taxes, withholdings and standard deductions.

<PAGE>
<PAGE>
Charles D. Molloy, Jr.
Page 3
October 8, 2002

                  Notwithstanding anything to the contrary, it is understood
                  that if your employment is terminated by you for any
                  reason, or by Angelica for good cause, Angelica will have
                  no obligation to pay any such incentive fee.

         6.       SETTLEMENT AGREEMENT AND RELEASE - Any and all payments to
                  --------------------------------
                  be made to you pursuant to this letter agreement, are
                  expressly conditioned upon the negotiation and execution of a
                  mutually acceptable settlement agreement and release by you
                  and Angelica. Such settlement agreement and release shall
                  include, but not be limited to: a release by you of all
                  claims against Angelica; your continuing agreement not to
                  disclose confidential information of Angelica; your agreement
                  not to solicit Angelica's employees for employment by you or
                  by others for a period of not less than one year; your
                  agreement not to disparage Angelica or any of its officers,
                  directors or other employees; and such other terms and
                  conditions as are customarily included in such agreement to
                  which Angelica is a party. Any and all rights of Angelica
                  under said Agreement shall be expressly assignable by
                  Angelica to a third party without your further consent.

         7.       MISCELLANEOUS - The above sets forth the terms of your
                  -------------
                  employment and supersedes any prior written or oral
                  agreements, understandings, discussions or negotiations
                  with respect thereto.

         Please acknowledge your receipt and acceptance of these terms by
signing and returning to me the enclosed copy of this letter.

Very truly yours,

/s/ Don W. Hubble
--------------------------------
Don W. Hubble

RECEIPT AND ACCEPTANCE
ACKNOWLEDGED

/s/ Charles D. Molloy, Jr.
--------------------------------
Charles D. Molloy, Jr.

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