Document:

Exhibit 10.5

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (the “Agreement”)
dated as of March 10, 2006 by and between Superior Essex Inc. (the “Company”)
and Barbara L. Blackford (“Executive”).

 

The Company and Executive entered into that
certain Letter Agreement dated as of February 26, 2004 (the “Original
Agreement”). The Company and Executive desire to amend and restate the Original
Agreement as set forth herein.

 

THEREFORE, in consideration of the premises and mutual covenants herein and for
other good and valuable consideration, the Company and Executive amend and
restate the Original Agreement as follows:

 

1.                                       Term of Employment. Subject to the provisions of Section 8 of
this Agreement, Executive shall continue to be employed by the Company for a
period commencing on April 12, 2004 and ending on December 31, 2006
(the “Employment Term”) on the terms and subject to the conditions set forth in
this Agreement; provided, however, that commencing with December 31,
2006 and on each anniversary thereof (each an “Extension Date”), the Employment
Term shall be automatically extended for an additional one-year period, unless
the Company or Executive provides the other party hereto 90 days prior written
notice before the next Extension Date that the Employment Term shall not be so
extended. The
occurrence of a Change in Control (as
defined in the Superior Essex Inc. 2005 Incentive Plan) shall not affect the
term of this Agreement.

 

2.                                       Position.

 

a.                                       During
the Employment Term, Executive shall serve as an Executive Vice President,
General Counsel and Corporate Secretary of the Company. In such position,
Executive shall have such duties and authority, consistent with such position
with the Company, as shall be determined from time to time by the Board of
Directors of the Company (the “Board”) or the Chief Executive of the Company. Executive
shall report directly to the Chief Executive Officer of the Company.

 

b.                                      During
the Employment Term, Executive will devote Executive’s full business time and
best efforts to the performance of Executive’s duties hereunder and will not
engage in any other business, profession or occupation for compensation or
otherwise which would conflict or interfere, in any significant respect, with
the rendition of such services either directly or indirectly, without the prior
written consent of the Board. Notwithstanding the foregoing, Executive may,
without the prior approval of the Board, (i) make and manage personal
business investments of Executive’s choice, subject to the prior written
consent of the Board if any such investment is beyond merely buying and selling
in the ordinary course (and, in so doing, may serve as an officer,
director, agent or employee of entities and business enterprises that are related
to such personal investments) and (ii) serve in any capacity with any
civic, educational or charitable organization or any governmental entity or
trade association; provided that in each case, and in the aggregate,
such activities do not conflict or interfere, in any

 

 

significant respect, with the
performance of Executive’s duties hereunder or conflict with Section 9.

 

c.                                       Notwithstanding anything to
the contrary in this Section 2, Executive agrees to serve without
additional compensation, if elected or appointed thereto, as a director of the
Company and any of its subsidiaries and in one or more executive offices of any
of the Company’s subsidiaries, provided that Executive is indemnified
for serving in any and all such capacities.

 

3.                                       Base Salary. During the Employment Term, the Company shall pay Executive a base
salary at the annual rate of $300,000 (effective as of April 2006),
payable in regular installments in accordance with the Company’s usual payment
practices (but not less often than monthly). Executive’s base salary shall be
reviewed annually by the Board, and Executive shall be entitled to such
increases in the base salary, if any, as may be determined from time to
time in the sole discretion of the Board. Once increased, such base salary shall
not be decreased and no increase shall serve to limit or reduce any other
obligation to Executive under this Agreement. Executive’s annual base salary,
as in effect from time to time, is hereinafter referred to as the “Base Salary”.

 

4.                                       Annual Bonus. With respect to each fiscal year ending during the Employment Term,
Executive shall be eligible to earn an annual bonus award (an “Annual Bonus”)
based upon the achievement of certain performance targets, as reasonably
established by the Board in good faith, after consultation with Executive; provided,
however, that Executive shall have a target Annual Bonus of 55% of the
Base Salary, subject to Executive’s achievement of such performance targets.

 

5.                                       Equity Arrangements. Exhibit A
attached hereto describes certain equity awards granted to Executive in
connection with the execution of the Original Agreement.

 

6.                                       Employee Benefits. During the Employment Term, Executive shall be
entitled to participate in the Company’s (or its affiliates’) employee benefit
plans, programs and arrangements as in effect from time to time (collectively,
the “Employee Benefits”), on the same basis as those benefits generally are
made available to other senior executives of the Company, commensurate with
Executive’s position with the Company. Such benefits shall include, but not be limited
to, the Superior Essex Inc. Senior Executive Retirement Plan (the “SERP”) or
another plan providing materially the same benefits as the SERP.

 

7.                                       Business Expenses and Perquisites.

 

a.                                       Business
and Other Expenses. During the Employment Term, reasonable business
expenses incurred by Executive in the performance of Executive’s duties
hereunder shall be reimbursed by the Company in accordance with Company
policies.

 

b.                                      Perquisites. While employed hereunder,
Executive shall be entitled to (i) any perquisites that generally are made
available to other senior executives of the Company and (ii) those
perquisites set forth on Exhibit B attached hereto.

 

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8.                                       Termination. The Employment Term and Executive’s employment hereunder may be
terminated by either party at any time and for any reason in the manner
provided herein. Notwithstanding any other provision of this Agreement, the
provisions of this Section 8 shall exclusively govern Executive’s rights
upon termination of employment with the Company and its affiliates. Whenever this Agreement
provides for the payment of a lump sum benefit following termination of
employment, such payment shall be made within 30 days after the employment
termination date, subject to the execution and non-revocation of the release
referred to in Section 8(h). Notwithstanding the foregoing, to the extent
required to comply with Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”) and the applicable regulations and guidance thereunder,
any payment under this Section 8 shall be delayed to the first day after
the six-month anniversary of Executive’s separation from service, as defined in
Code Section 409A and the applicable regulations and guidance thereunder
(the “Delayed Payment Date”).

 

a.                                       By the Company for Cause or Resignation by
Executive without Good Reason.

 

(i)                                     The
Employment Term and Executive’s employment hereunder may be terminated by
the Company for Cause and shall terminate automatically upon Executive’s
resignation without Good Reason; provided, however, that
Executive will be required to give the Company at least 30 days advance written
notice of a resignation without Good Reason.

 

(ii)                                  For
purposes of this Agreement, “Cause” shall mean (A) Executive’s continued
willful failure to perform substantially Executive’s duties hereunder
(other than as a result of total or partial incapacity due to physical or
mental illness) following written notice by the Company to Executive of such
failure, (B) dishonesty in the performance of Executive’s duties hereunder
which is injurious (other than in some immaterial or de minimis respect) to the
financial condition or business reputation of the Company or any of its affiliates,
(C) Executive’s conviction of, or plea of guilty or nolo  contendere
to, a crime constituting (y) a felony under the laws of the United States or
any state thereof or (z) a misdemeanor involving misconduct by Executive in her
personal or professional conduct punishable by imprisonment of more than three
days or a fine in excess of $5,000 (other than a traffic violation), which is
reasonably likely to damage the business, prospects or reputation of the
Company or any of its affiliates in any respect, (D) Executive’s willful
malfeasance or willful misconduct in connection with Executive’s duties
hereunder or any act or omission which is injurious (other than in some
immaterial or de minimis respect) to the financial condition or business
reputation of the Company or any of its affiliates or (E) Executive’s
breach of the provisions of Section 9 or 10 of this Agreement (other than
a breach which is insubstantial and insignificant, taking into account all of
the circumstances); provided, however, that any event described
in clauses (A), (B) and (D) of this Section 8(a)(ii) shall
constitute Cause only if Executive fails to cure such event, to the reasonable
satisfaction of the Board, within 10 days after receipt from the Company of
written notice of the event which constitutes Cause.

 

(iii)                               If
Executive’s employment is terminated by the Company for Cause or if Executive
resigns without Good Reason, Executive shall be entitled to receive:

 

(A)                              the
Base Salary through the date of termination;

 

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(B)                                any
Annual Bonus earned but unpaid as of the date of termination for any previously
completed fiscal year;

 

(C)                                reimbursement
for any unreimbursed business expenses properly incurred by Executive in
accordance with Company policy prior to the date of Executive’s termination;
and

 

(D)                               such
Employee Benefits, if any, as to which Executive may be entitled under the
employee benefit plans of the Company or any of its affiliates, including,
without limitation, any vested accrued benefit under the SERP (the amounts
described in clauses (A) through (D) hereof being referred to as the “Accrued
Rights”).

 

Following such termination of Executive’s employment
by the Company for Cause or resignation by Executive without Good Reason,
except as set forth in this Section 8(a)(iii), Section 8(d) or
Sections 12(k), (m) and (n), or any payments to be made on the Delayed Payment Date, Executive
shall have no further rights to any compensation or any other benefits under
this Agreement.

 

b.                                      Disability
or Death.

 

(i)                                     The
Employment Term and Executive’s employment hereunder shall terminate upon
Executive’s death and may be terminated by the Company if Executive
becomes physically or mentally incapacitated and is therefore reasonably likely
to be unable for a period of six consecutive months or for an aggregate of nine
months in any twelve consecutive month period to perform Executive’s
material duties (such incapacity is hereinafter referred to as “Disability”). Any
question as to the existence of the Disability of Executive as to which
Executive and the Company cannot agree shall be determined in writing by a
qualified independent physician mutually acceptable to Executive and the
Company. If Executive and the Company cannot agree as to a qualified
independent physician, each shall appoint such a physician and those two
physicians shall select a third who shall make such determination in writing. The
determination of Disability made in writing to the Company and Executive shall
be final and conclusive for all purposes of the Agreement.

 

(ii)                                  Upon
termination of Executive’s employment hereunder for Disability or death,
Executive or Executive’s estate (as the case may be) shall be entitled to
receive:

 

(A)                              the
Accrued Rights; and

 

(B)                                a
lump sum payment equal to a pro-rata portion of Executive’s Annual Bonus for
the fiscal year in which Executive’s termination occurs (determined by
multiplying the amount Executive would be able to receive if the date of
termination were the end of the fiscal year by a fraction, the numerator of
which is the number of days during the performance year of termination that
Executive is employed by the Company and the denominator of which is 365); provided,
that the applicable performance targets are met for the portion of the fiscal
year during which Executive was employed by the Company; provided, further,
that no amount shall be paid to Executive if at the time of such termination no
bonus would be payable based on the actual

 

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achievement of corporate, business unit and
individual performance results as of the date of termination (for example, if
actual performance through the date of termination represented 90% of target
performance objectives for the year, Executive would be entitled to a prorata
portion of the corresponding percentage of her target Annual Bonus based on the
applicable performance matrix, and if the threshold level of performance
objectives was not achieved, no bonus would be paid).

 

Following Executive’s
termination of employment due to death or Disability, except as set forth in
this Section 8(b)(ii), Section 8(d) or Sections 12(k), (m) and
(n), or any payments to
be made on the Delayed Payment Date, Executive shall have no further
rights to any compensation or any other benefits under this Agreement.

 

c.                                       By
the Company without Cause or Resignation by Executive for Good Reason.

 

(i)                                     The
Employment Term and Executive’s employment hereunder may be terminated by
the Company without Cause (other than by reason of death or Disability) or by
Executive’s resignation for Good Reason.

 

(ii)                                  For
purposes of this Agreement, “Good
Reason” shall mean, without Executive’s written consent, (A) a reduction
in Executive’s Base Salary as then in effect, (B) a reduction in Executive’s
target Annual Bonus to less than 55% of the Base Salary or a material reduction
by the Company of Employee Benefits to which Executive is entitled (other than
an overall reduction in benefits that affects substantially all full-time
employees of the Company and its affiliates), (C) Executive’s removal from
the position of Executive Vice President or General Counsel and Corporate
Secretary of the Company, (D) a material adverse change in Executive’s
authority, duties and responsibilities or reporting lines, (E) a
relocation of Executive’s principal place of employment with the Company of
more than 35 miles from Executive’s then current work location, (F) the
Company’s failure to pay amounts to which Executive is entitled under this
Agreement, or (G) the
Company’s giving written notice that it elects not to extend the Employment
Term pursuant to Section 1 of this Agreement; provided that any
event described in clauses (A) through (F) above shall constitute
Good Reason only if the Company fails to cure such event within 20 days after
receipt from Executive of written notice of the event which constitutes Good
Reason; provided, further, that Good Reason shall cease to exist
for an event described in clauses (A) through (F) above on the 60th
day following the later of its occurrence or Executive’s knowledge thereof,
unless Executive has given the Company written notice thereof prior to such
date.

 

(iii)                               If
Executive’s employment is terminated by the Company without Cause (other than
by reason of death or Disability) or if Executive resigns for Good Reason other than as provided in Section 8(c)(iv) below, Executive shall be
entitled to receive:

 

(A)                              the
Accrued Rights;

 

(B)                                a lump sum payment
equal to Executive’s then Base Salary; provided that the amount
described in this clause (B) shall be reduced by any other cash severance
payable to Executive under any other plans, programs or arrangements of the
Company

 

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or its affiliates (but
excluding the SERP);

 

(C)                                a lump sum payment
equal to a pro-rata portion of Executive’s Annual Bonus for the fiscal year in
which Executive’s termination occurs (determined by multiplying the amount
Executive would be able to receive if the date of termination were the end of the
fiscal year by a fraction, the numerator of which is the number of days during
the performance year of termination that Executive is employed by the Company
and the denominator of which is 365); provided, that the applicable
performance targets are met for the portion of the fiscal year during which
Executive was employed by the Company; provided, further, that no
amount shall be paid to Executive if at the time of such termination no bonus
would be payable based on the actual achievement of corporate, business unit
and individual performance results as of the date of termination (for example,
if actual performance through the date of termination represented 90% of target
performance objectives for the year, Executive would be entitled to a prorata
portion of the corresponding percentage of her target Annual Bonus based on the
applicable performance matrix, and if the threshold level of performance
objectives was not achieved, no bonus would be paid);

 

(D)                               subject to Executive’s
continued compliance with the provisions of Sections 9 and 10 of this Agreement
(other than a breach which is insubstantial and insignificant, taking into
account all of the circumstances), for a period of twelve months following the
date of such termination, continued participation in the health and welfare
plans maintained by the Company or any of its affiliates as in effect from time
to time during such twelve-month period, on the same basis as the Company and
its affiliates provides such plans for its then actively employed executives
(which may include, without limitation, medical, dental, disability and
life insurance), and the Company and Executive shall share the costs of the
continuation of such coverage in the same proportion as such costs were shared
immediately prior to Executive’s termination; provided, however,
that such participation shall terminate, or the benefits under such plan shall
be reduced, if and to the extent Executive becomes covered (or is eligible to
become covered) during such period by plans of a subsequent employer or other
entity to which Executive provides services providing comparable benefits or if
Executive fails to pay any required contribution or premium. Such coverage
shall be credited against the time period that Executive and Executive’s dependents
are entitled to receive continued coverage under the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended; and

 

(E)                                 the Compensation
Committee of the Company may, but need not, provide that (i) all or any part of
Executive’s unvested stock options, including, but not limited to, the Initial
Option described in Exhibit A, then held by Executive shall become vested
and exercisable as of the date of termination and may continue to be
exercisable for a designated period of time not to exceed the later of the 15th
day of the third month following the date at which, or December 31 of the
calendar year in which, the option would otherwise have expired, as provided in
the original option agreement, but in no event to exceed the original full term
of the option; and/or that (ii) all or any part of vesting
restrictions on other outstanding equity awards then held by Executive shall
vest and cease to be restricted as of the date of termination. Such decision may be
based on

 

6

 

such factors, if any, as the Compensation Committee shall determine,
including, but not limited to, the Company’s financial condition and market
conditions. Notwithstanding the foregoing, to the extent that any portion of
Executive’s outstanding equity awards are subject to market or performance
criteria (other than service requirements) affecting vesting or exercisability
and such market or performance criteria have been satisfied as of the date of
termination, that portion of the award shall be deemed fully vested as of the
date of termination.

 

(iv)                              If
Executive’s employment is terminated by the Company without Cause (other than
by reason of death or Disability) or if Executive resigns for Good Reason at
any time during the period beginning on the date of a Change in Control (as defined in the Superior Essex Inc. 2005 Incentive Plan) and
ending one year after the date of such Change in Control, Executive shall be
entitled to receive the benefits as provided under Section 8(c)(iii)(A), (B) and
(D), except that the amount paid pursuant to Section 8(c)(iii)(B) shall
be equal to two times the sum of (i) Executive’s then Base Salary, plus (ii) Executive’s
target Annual Bonus for the fiscal year in which Executive’s termination
pursuant to this Section 8(c)(iv) occurred, reduced by any other cash severance payable to Executive under any other
plans, programs or arrangements of the Company or its affiliates (but excluding
the SERP).

 

(v)                                 Following
Executive’s termination of employment by the Company without Cause (other than
by reason of Executive’s death or Disability) or by Executive’s resignation for
Good Reason, except as set forth in this Section 8(c), Section 8(d) or
Sections 12(k), (m) and (n), or any payments to be made on the Delayed Payment
Date, Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

d.                                      Effect of a Change in Control on Equity
Awards.

 

(i)                                     Accelerated Vesting. In addition to the rights described
above, upon the occurrence of a Change in Control (as defined in the Superior
Essex Inc. 2005 Incentive Plan), (A) all of Executive’s outstanding stock
options, including the Initial Options, and any other equity awards in the
nature of appreciation rights (collectively, “Appreciation Rights”), shall
become fully vested and exercisable as of the date of the Change in Control
and, unless settled in accordance with Section 8(d)(ii) below, shall
remain exercisable until the later of the 15th day of the third
month following the date at which, or December 31 of the calendar year in
which, the equity awards would otherwise have expired, as provided in the
original award agreement, but in no event after the original full term of the
equity award, and (B) all time-based or performance-based vesting
restrictions on Executive’s outstanding restricted stock, restricted stock
units and other equity awards (collectively, “Restricted Rights”) shall lapse
as of the date of the Change in Control.

 

(ii)                                  Settlement
of Awards in Certain Events. The following shall apply only upon the
occurrence of a Change in Control in which the consideration paid to Company
shareholders is consideration other than shares in the resulting or surviving
entity that are listed for trading on a nationally recognized exchange. In such
event, (A) all of Executive’s Appreciation Rights shall vest and be
cancelled simultaneously with the Change in Control and Executive shall be
entitled to receive therefor the same transaction consideration as if she were
a shareholder of the Company holding the number of shares of Company common
stock having a

 

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fair market value, as of the effective time of the
Change in Control, equal to (x) the excess, if any, of the value of the
consideration per share to be received by Company shareholders in such Change
of Control, over the exercise price for such Appreciation Right, less (y)
applicable withholding taxes; and (B) all of Executive’s Restricted Rights
shall vest and be cancelled simultaneously with the Change in Control and
Executive shall be entitled to receive therefor the same transaction
consideration as if she were a shareholder of the Company holding the number of
shares of Company common stock having a fair market value, as of the effective
time of the Change in Control, equal to the value of such Restricted Rights,
less applicable withholding taxes.

 

e.                                       Expiration
of Employment Term.

 

(i)                                     Election
Not to Extend the Employment Term. In the event either party elects not to
extend the Employment Term pursuant to Section 1, unless Executive’s
employment is earlier terminated pursuant to paragraphs (a), (b) or (c) of
this Section 8, Executive’s termination of employment hereunder (whether
or not Executive continues as an employee of the Company or any affiliate
thereafter) shall be deemed to occur on the close of business on the day
immediately preceding the next scheduled Extension Date. If the Company so
elects not to extend the Employment Term, Executive shall be treated as having
resigned for Good Reason and Executive’s rights and obligations shall be
determined in accordance with Section 8(c). If Executive so elects not to
extend the Employment Term, Executive shall be entitled to receive the Accrued
Rights.

 

Following such
termination of Executive’s employment hereunder as a result of either party’s
election not to extend the Employment Term, except as set forth in this Section 8(e)(i),
Section 8(d) or Sections 12(k), (m) and (n), or any payments to be made on the Delayed
Payment Date, Executive shall have no further rights to any compensation
or any other benefits under this Agreement.

 

(ii)                                  Continued
Employment Beyond the Expiration of the Employment Term. Unless the parties
otherwise agree in writing, continuation of Executive’s employment with the
Company or any affiliate beyond the expiration of the Employment Term shall be
deemed an employment at-will and shall not be deemed to extend any of the
provisions of this Agreement and Executive’s employment may thereafter be
terminated at will by either Executive or the Company (or affiliate); provided
that the provisions of Sections 9, 10, 11 and 12(m) of this Agreement shall
survive any termination of this Agreement or Executive’s termination of
employment hereunder.

 

f.                                         Notice
of Termination. Any purported termination of employment by the Company or
by Executive (other than due to Executive’s death) shall be communicated by
Notice of Termination to the other party hereto in accordance with Section 12(h) hereof.
For purposes of this Agreement, a “Notice of Termination” shall mean a written
notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of employment under
the provision so indicated.

 

8

 

g.                                      Board/Committee
Resignation. Upon termination of Executive’s employment for any reason,
Executive shall be deemed to have resigned, as of the date of such termination
and to the extent applicable, from the board of directors (and any committees
thereof) of the Company or its affiliates. Executive agrees to execute any
documentation reasonably requested by the Company to evidence such resignation,
but Executive’s failure to comply shall not affect the resignation, which is
automatic.

 

h.                                      Execution of Release of All
Claims. Upon
termination of Executive’s employment for any reason, Executive agrees to execute
a release of all claims against the Company and its shareholders, and any of
their respective subsidiaries, affiliates, shareholders, partners, directors,
officers, employees and agents (the “Protected Group”), substantially in the form attached
hereto as Exhibit C. Notwithstanding anything set forth in this Agreement
to the contrary, upon termination of Executive’s employment for any reason, Executive shall not receive
any payments or benefits to which Executive may be entitled hereunder
(other than those which by law cannot be subject to the execution of a release)
if Executive fails to execute such a release or revokes such release.

 

9.                                       Non-Competition.

 

a.                                       Executive
acknowledges
and recognizes the highly competitive nature of the businesses of the Company
and its affiliates and accordingly agrees as follows:

 

(i)                                     During
the Employment Term and, for a period of twelve months following the date
Executive ceases to be employed by the Company for any reason (the “Restricted
Period”), Executive will not, whether on Executive’s own behalf or on behalf of
or in conjunction with any person, firm, partnership, joint venture,
association, corporation or other business organization, entity or enterprise
whatsoever (“Person”), directly or indirectly solicit or assist in soliciting
in competition with the Company or its affiliates, the wire or cable business
of any client or prospective client:

 

(A)                             with
whom Executive had personal contact or dealings on behalf of the Company or its
affiliates during the one year period preceding Executive’s termination of
employment;

 

(B)                               with
whom employees reporting to Executive have had personal contact or dealings on
behalf of the Company or its affiliates during the one year period immediately
preceding Executive’s termination of employment; or

 

(C)                               for
whom Executive had direct or indirect responsibility during the one-year period
immediately preceding Executive’s termination of employment.

 

(ii)                                  During
the Restricted Period, Executive will not directly or indirectly:

 

(A)                             engage
in any business that manufactures or distributes wire or cable in competition
with the Company or its affiliates in any geographical area that is within 100
miles of any geographical area where the Company or its affiliates manufactures
or distributes wire or cable (a “Competitive Business”);

 

9

 

(B)                               enter
the employ of, or render any services to, any Person (or any division or
controlled or controlling affiliate of any Person) who or which engages in a
Competitive Business;

 

(C)                               acquire
a financial interest in, or otherwise become actively involved with, any
Competitive Business, directly or indirectly, as an individual, partner,
shareholder, officer, director, principal, agent, trustee or consultant; or

 

(D)                              interfere
with, or attempt to interfere with, business relationships (whether formed
before, on or after the date of this Agreement) between the Company or any of
its affiliates and customers, clients, suppliers, partners, members or
investors of the Company or its affiliates.

 

(iii)                                Notwithstanding
anything to the contrary in this Agreement, Executive may, directly or
indirectly own, solely as an investment, securities of any Person engaged in
the business of the Company or its affiliates which are publicly traded on a
national or regional stock exchange or on the over-the-counter market if
Executive (a) is not a controlling person of, or a member of a group which
controls, such person and (b) does not, directly or indirectly, own 5% or
more of any class of securities of such Person.

 

(iv)                               During
the Restricted Period, Executive will not, whether on Executive’s own behalf or
on behalf of or in conjunction with any Person, directly or indirectly:

 

(A)                                solicit
or encourage any employee of the Company or its affiliates to leave the
employment of the Company or its affiliates; or

 

(B)                                  hire
any such employee who was employed by the Company or its affiliates as of the
date of Executive’s termination of employment with the Company or who left the
employment of the Company or its affiliates coincident with, or within one year
prior to or after, the termination of Executive’s employment with the Company.

 

(v)                                 During
the Restricted Period, Executive will not, directly or indirectly, solicit or
encourage to cease to work with the Company or its affiliates any consultant
then under contract with the Company or its affiliates.

 

b.                                      It
is expressly understood and agreed that although Executive and the Company
consider the restrictions contained in this Section 9 to be reasonable, if
a final judicial determination is made by a court of competent jurisdiction
that the time or territory or any other restriction contained in this Agreement
is an unenforceable restriction against Executive, the provisions of this
Agreement shall not be rendered void but shall be deemed amended to apply as to
such maximum time and territory and to such maximum extent as such court may judicially
determine or indicate to be enforceable. Alternatively, if any court of
competent jurisdiction finds that any restriction contained in this Agreement
is unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein.

 

10

 

10.                                 Confidentiality and Non-Disparagement.

 

a.                                       Confidentiality.

 

(i)                                     Executive
will not at any time (whether during or after Executive’s employment with the
Company) (y) retain or use for the benefit, purposes or account of Executive or
any other Person, or (z) disclose, divulge, reveal, communicate, share,
transfer or provide access to any Person outside the Company or its affiliates
(other than its professional advisers who are bound by confidentiality
obligations), any non-public, proprietary or confidential information —including
without limitation trade secrets, know-how, research and development, software,
databases, inventions, processes, formulae, technology, designs and other
intellectual property, information concerning finances, investments, profits,
pricing, costs, products, services, vendors, customers, clients, partners,
investors, personnel, compensation, recruiting, training, advertising, sales,
marketing, promotions, government and regulatory activities and approvals
concerning the past, current or future business, activities and operations of
the Company, its subsidiaries or affiliates and/or any third party that has
disclosed or provided any of same to the Company or its affiliates on a
confidential basis (“Confidential Information”) without the prior written authorization
of the Board.

 

(ii)                                  “Confidential
Information” shall not include any information that is (A) generally known
to the industry or the public other than as a result of Executive’s breach of
this covenant or any breach of other confidentiality obligations by third
parties; (B) made legitimately available to Executive by a third party
without breach of any confidentiality obligation; or (C) required by law
to be disclosed; provided, however, that Executive shall give
prompt written notice to the Company of such requirement, disclose no more
information than is so required, and cooperate (at the Company’s expense) with
any attempts by the Company to obtain a protective order or similar treatment.

 

(iii)                               Upon
termination of Executive’s employment with the Company for any reason,
Executive shall: (x) cease and not thereafter commence use of any Confidential
Information or intellectual property (including without limitation, any patent,
invention, copyright, trade secret, trademark, trade name, logo, domain name or
other source indicator) owned or used by the Company, its subsidiaries or
affiliates; (y) immediately destroy, delete, or return to the Company, at the
Company’s option, all originals and copies in any form or medium
(including memoranda, books, papers, plans, computer files, letters and other
data) in Executive’s possession or control (including any of the foregoing
stored or located in Executive’s office, home, laptop or other computer,
whether or not Company property) that contain Confidential Information or
otherwise relate to the business of the Company, its affiliates and
subsidiaries, except that Executive may retain only those portions of any
personal notes, notebooks and diaries that do not contain any Confidential
Information; and (z) notify and fully cooperate with the Company (at the
Company’s expense) regarding the delivery or destruction of any other
Confidential Information of which Executive is or becomes aware.

 

b.                                      Non-Disparagement.

 

(i)                                     Executive shall not at any
time make any oral or written statement about the Company, its affiliates or
its shareholders, regarding any of the foregoing’s financial status,

 

11

 

business, compliance with laws, ethics,
shareholders, partners, personnel, directors, officers, employees, consultants,
agents, services, business methods or otherwise, which is intended or
reasonably likely to disparage any member of the Protected Group, or otherwise
degrade any member of the Protected Group’s reputation in the business,
industry or legal community in which any such member operates; provided
that Executive shall be permitted to (A) make any statement that is
required by applicable securities or other laws to be included in a filing or
disclosure document, (B) issue any press release or public statement
regarding the fact of a termination of Executive’s employment, (C) defend
himself against any statement made by the Company or its affiliates that is
intended or reasonably likely to disparage Executive or otherwise degrade
Executive’s reputation in the business, industry or legal community in which
Executive operates, only if Executive reasonably believes that the statements
made in such defense are not false statements and (D) provide truthful
testimony in any legal proceeding.

 

(ii)                                  The
Company and its affiliates shall not issue any press release or make any public
statement about Executive which is intended or reasonably likely to disparage
Executive, or otherwise degrade Executive’s reputation in the business or industry
in which Executive operates; provided that the Company and its
affiliates shall be permitted to (A) make any statement that is required
by applicable securities or other laws to be included in a filing or disclosure
document, (B) issue any press release or public statement regarding the
fact of a termination of Executive’s employment, (C) defend itself against
any statement made by Executive that is intended or reasonably likely to
disparage any member of the Protected Group or otherwise degrade any member of
the Protected Group’s reputation in the business, industry or legal community
in which such member of the Protected Group operates, only if the Company or
its affiliate reasonably believes that the statements made in such defense are
not false statements and (D) provide truthful testimony in any legal
proceeding.

 

c.                                       Survival.
The provisions of this Section 10 shall survive the termination of
Executive’s employment for any reason.

 

11.                                 Specific Performance. Executive acknowledges and agrees that the
Company’s remedies at law for a breach or threatened breach of any of the
provisions of Section 9 or Section 10 would be inadequate and the
Company would suffer irreparable damages as a result of such breach or
threatened breach. In recognition of this fact, Executive agrees that, in the
event of such a breach or threatened breach, in addition to any remedies at
law, the Company, without posting any bond, shall be entitled to cease making
any payments or providing any benefit otherwise required by this Agreement and
obtain equitable relief in the form of specific performance, temporary
restraining order, temporary or permanent injunction or any other equitable
remedy which may then be available.

 

12.                                 Miscellaneous.

 

a.                                       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware, without regard to conflicts of laws principles thereof.

 

b.                                      Entire
Agreement/Amendments. This Agreement contains the entire understanding of
the parties with respect to the employment of Executive by the Company.

 

12

 

There are no restrictions,
agreements, promises, warranties, covenants or undertakings between the parties
with respect to the subject matter herein other than those expressly set forth
herein. This Agreement may not be altered, modified, or amended except by
written instrument signed by the parties hereto.

 

c.                                       No
Waiver. The failure of a party to insist upon strict adherence to any term
of this Agreement on any occasion shall not be considered a waiver of such
party’s rights or deprive such party of the right thereafter to insist upon
strict adherence to that term or any other term of this Agreement.

 

d.                                      Severability.
In the event that any one or more of the provisions of this Agreement shall be
or become invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions of this Agreement shall
not be affected thereby.

 

e.                                       Assignment.
This Agreement, and all of Executive’s rights and duties hereunder, shall not
be assignable or delegable by Executive. Any purported assignment or delegation
by Executive in violation of the foregoing shall be null and void ab initio and of no force and effect. This Agreement may be
assigned by the Company to a person or entity which is an affiliate and shall
be assigned to a successor in interest to substantially all of the business
operations of the Company which assumes in writing, or by operation of law, the
obligations of the Company hereunder. Upon such assignment, the rights and
obligations of the Company hereunder shall become the rights and obligations of
such affiliate or successor person or entity; provided, however,
that, unless Executive consents to such assignment (which consent shall not be
unreasonably withheld), the Company shall remain secondarily liable for any
obligations hereunder. Failure of the Company to obtain such assumption
substantially simultaneous with the occurrence of such succession shall be a
breach of the Agreement and shall entitle Executive to terminate employment
with the Company for Good Reason and Executive’s rights and obligations shall
be determined in accordance with Section 8(c)(iii), except that for
purposes of implementing the foregoing, the date on which any such succession
becomes effective shall be deemed the date of termination. As used in the
Agreement, Company shall mean the Company as herein before defined and any
successor to its business and/or assets as aforesaid which executes and delivers
the agreement provided for in this Section or which otherwise becomes
bound by all the terms and provisions of this Agreement by operation of law.

 

f.                                         No
Set-Off; No Duty to Mitigate. The Company’s obligation to pay Executive the
amounts provided and to make the arrangements provided hereunder shall not be
subject to set-off, counterclaim or recoupment of amounts owed by Executive to
the Company or its affiliates. In no event shall Executive be obligated to seek
other employment or take any other action by way of mitigation of the amounts
payable to Executive under any of the provisions of this Agreement or
otherwise, nor shall the amount of any payment or benefits provided hereunder
be reduced by any compensation earned by Executive as a result of employment by
another employer except as provided in Section 8(c)(iii).

 

g.                                      Successors;
Binding Agreement. This Agreement shall inure to the benefit of and be
binding upon personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

 

13

 

h.                                      Notice.
For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when delivered by hand or overnight courier or three days after
it has been mailed by United States registered mail, return receipt requested,
postage prepaid, addressed to the respective addresses set forth below in this
Agreement, or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

 

If to the Company:

 

150 Interstate North
Parkway

Atlanta, Georgia 30339

 

Attention: Chief Executive Officer

 

If to Executive:

 

To the most recent address of Executive set forth in the personnel
records of the Company.

 

i.                                          Executive
Representation. Executive hereby represents to the Company that the
execution and delivery of this Agreement by Executive and the Company and the
performance by Executive of Executive’s duties hereunder shall not constitute a
breach of, or otherwise contravene, the terms of any employment agreement or
other agreement or policy to which Executive is a party or otherwise bound.

 

j.                                          Prior
Agreements. This Agreement supercedes all prior agreements and
understandings (including verbal agreements) between Executive and the Company
and/or its affiliates regarding the terms and conditions of Executive’s
employment with the Company and/or its affiliates (other than the SERP and the
rights of Executive under such plan shall not be effected or limited by this
Agreement).

 

k.                                       Cooperation.
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. This
provision shall survive any termination of this Agreement. The Company shall
reimburse Executive for any reasonable out-of-pocket expenses incurred in
connection with Executive’s performance of obligations under this Section 12(k)
at the request of the Company and, following Executive’s termination of
employment hereunder, the Company shall pay Executive a fee at an hourly rate
of $300 for Executive’s performance of obligations under this Section 12(k)
at the request of the Company; provided that (i) Executive is not
receiving any payments pursuant to Section 8(c) of this Agreement at
the time of Executive’s performance of such obligations and (ii) Executive’s
cooperation is not in connection with any action, suit or proceeding in respect
of which the Company is providing or has provided any payments pursuant to Section 12(m)
of this Agreement.

 

14

 

l.                                          Withholding
Taxes. The Company may withhold from any amounts payable under this
Agreement such Federal, state and local taxes as may be required to be
withheld pursuant to any applicable law or regulation.

 

m.                                    Indemnification.
In the event Executive is made a party to any threatened or pending action,
suit, or proceeding, whether civil, criminal, administrative, or investigative,
by reason of the fact that Executive is or was performing services under this
Agreement or as an employee, officer or director of the Company, then, to the
fullest extent permitted by applicable law, the Company shall indemnify
Executive against all expenses (including reasonable attorneys’ fees),
judgments, fines, and amounts paid in settlement, as actually and reasonably
incurred by Executive in connection therewith. Such indemnification shall
continue as to Executive even if Executive has ceased to be an employee,
officer or director of the Company and shall inure to the benefit of Executive’s
heirs and estate. In the event that both Executive and the Company are made a
party to the same third-party action, complaint, suit, or proceeding, the
Company will engage competent legal representation, and Executive agrees to use
the same representation at the Company’s expense; provided that if counsel
selected by the Company shall have a conflict of interest that prevents such
counsel from representing Executive, Executive may engage separate counsel
and the Company shall pay all reasonable attorneys’ fees of such separate
counsel. In addition, the Company agrees to continue and maintain a directors’
and officers’ liability insurance policy covering Executive both during and,
while potential liability exists, after the Employment Term that is no less
favorable than the policy covering other directors and senior officers of the
Company.

 

n.                                      Legal
Fees. In the event of any dispute with respect to this Agreement which
results in a lawsuit, arbitration or other dispute resolution, the person
hearing such dispute shall be entitled to award reasonable attorneys’ fees and
other costs and expenses incurred in connection with such dispute to the party
which prevails in substantially all material respects on the issues presented
for resolution, as determined by the person hearing such dispute.

 

o.                                      Arbitration.
Any dispute or controversy arising under or in connection with this Agreement,
other than injunctive relief under Section 11 hereof or damages for breach
of Section 9 or 10, shall be settled exclusively by arbitration, conducted
before a single arbitrator in Atlanta, Georgia in accordance with the National Rules for
the Resolution of Employment Disputes of the American Arbitration Association
then in effect. The decision of the arbitrator will be final and binding upon the
parties hereto. Judgment may be entered on the arbitrator’s award in any
court having jurisdiction.

 

p.                                      Counterparts.
This Agreement may be signed in counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were
upon the same instrument.

 

13.                                 Authority. This
Agreement has been duly approved and authorized by all necessary action of the
Company.

 

(signatures on following page)

 

15

 

IN WITNESS WHEREOF, the parties hereto have
duly executed this Agreement as of the day and year first above written.

 

 

	
  SUPERIOR ESSEX INC.

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Stephen
  M. Carter

  	
   

  	
  /s/ Barbara
  L. Blackford

  	
   

  
	
  By:

  	
  Stephen M.
  Carter

  	
  Barbara L.
  Blackford

  
	
   

  	
  Chief
  Executive Officer

  	
   

  
					

 

16

 

EXHIBIT A

 

INITIAL
EQUITY ARRANGEMENTS

 

On May 3, 2004, the Company granted
Executive a non-qualified stock option (the “Initial Option”) to purchase
45,000 shares of the Company’s common stock, par value $.0l (the “Common Stock”)
under the Superior Essex Inc. 2003 Stock Incentive Plan (the “2003 Stock
Incentive Plan”) at an exercise price equal to $14.40. Unless otherwise
provided by the Compensation Committee of the Board or as provided herein, and
subject to Executive’s continued employment by the Company (or its affiliates)
through each vesting date, the Initial Option will vest and become exercisable
in equal annual installments of 33-1/3% each, on May 3, 2005, May 3,
2006 and May 3, 2007. The Option was granted pursuant to and is subject to
the terms and conditions of, the 2003 Stock Incentive Plan and the applicable
stock option agreement; provided, however, that upon a Change in
Control (as defined in the 2003 Stock Incentive Plan), any unvested portion of
the Initial Option then held by Executive shall become fully vested and
exercisable and shall remain exercisable until the later of the 15th
day of the third month following the date at which, or December 31 of the
calendar year in which, the Initial Option would otherwise have expired, as
provided in the original option agreement, but in no event after the original
full term of the Initial Option.

 

 

EXHIBIT B

 

PERQUISITES

 

(1)                                   The
Company shall provide a car allowance to Executive in the amount of $1,000 per
month (which is intended to be inclusive of any income taxes owed by Executive
as a result of all or any portion of this allowance being determined to be
compensation to Executive and Executive
will not receive additional compensation to reimburse Executive for taxes with
respect to the allowance). Executive shall be responsible for all costs of
operating and maintaining the vehicle, including insurance, title, taxes and
fuel. Subject to compliance with the Company’s policies, the Company will reimburse
or pay deductible business expenses related to the use of the vehicle, subject
to Company policies, such as parking fees and fuel for business mileage..

 

(2)                                   The
Company shall reimburse Executive, in accordance with the Company’s
telecommunications policy, for the telecommunications and computing costs to
provide Executive with an effective office capability at home and while
traveling.

 

(3)                                   The Company agrees to pay the first $7,500 of
reasonable expenses incurred by Executive per year for financial planning and
counseling in accordance with the Company’s policy. Any expenses in excess of
$7,500 per year shall be borne by Executive.

 

(4)                                  The
Company agrees to pay for or reimburse Executive for (i) Alabama, Georgia
and Texas Bar licenses and memberships and any other state or country in which
the Company requests Executive to practice, (ii) reasonable continuing
legal education and legal publications and (iii) membership in the
American Society of Corporate Secretaries, the American Bar Association, the
Corporate Counsel Association of America and certain of their committees and
other reasonable professional association membership fees.

 

 

EXHIBIT C

 

RELEASE

 

In exchange
for a portion of the benefits described in the attached Amended and Restated
Employment Agreement dated as of March 10, 2006 (the “Agreement”), to
which I agree I am not otherwise entitled, I hereby release Superior Essex Inc.
(the “Company”), its respective affiliates, subsidiaries, predecessors,
successors, assigns, officers, directors, employees, agents, stockholders,
attorneys, and insurers, past, present and future (the “Released Parties”) from
any and all claims of any kind which I now have or may have against the
Released Parties, whether known or unknown to me, by reason of facts which have
occurred on or prior to the date that I have signed this Release in connection
with, or in any way related to or arising out of, my employment or termination
of employment with the Company; provided that such released claims shall
not include any claims to enforce my rights (i) under, or with respect to,
the Agreement, (ii) to indemnification provided at law or pursuant to the
Company’s (or an affiliate’s) By-Laws or insurance or to directors’ and
officers’ liability or employment practices insurance coverage, (iii) under
COBRA or my vested rights under benefit or incentive plans; or (iv) as a
stockholder. Notwithstanding the generality of the preceding sentence, such
released claims include, without limitation, any and all claims under federal,
state or local laws pertaining to employment, including the Age Discrimination
in Employment Act, Title VII of the Civil Rights Act of 1964, as amended, 42
U.S.C. Section 2000e et seq., the Fair Labor Standards Act, as
amended, 29 U.S.C. Section 201 et seq., the Americans with
Disabilities Act, as amended, 42 U.S.C. Section 12101 et seq., the
Reconstruction Era Civil Rights Act, as amended, 42 U.S.C. Section 1981 et
seq., the Rehabilitation Act of 1973, as amended, 29 U.S.C. Section 701
et seq., the Family and Medical Leave Act of 1992, 29 U.S.C. Section 2601
et seq., and any and all state or local laws regarding employment
discrimination and/or federal, state or local laws of any type or description
regarding employment, including, but not limited to, any claims arising from or
derivative of my employment with the Company, as well as any and all claims
under state contract or tort law or otherwise.

 

I hereby
represent that I have not filed any action, complaint, charge, grievance or
arbitration against the Company or the Released Parties.

 

I understand
and agree that I must forever continue to keep confidential all proprietary or
confidential information which I learned while employed by the Company, whether
oral or written and as defined in the Agreement (“Confidential Information”)
and shall not make use of any such Confidential Information on my own behalf or
on behalf of any other person or entity, except as specifically authorized by
the Agreement.

 

I expressly
understand and agree that the Company’s obligations under this Release and the
Agreement are in lieu of any and all other amounts to which I might be, am now
or may become entitled to receive from any of the Released Parties upon
any claim whatsoever.

 

I understand
that I must not disclose the terms of this Release and the Agreement

 

 

to anyone other than my immediate family, financial advisors (if any)
and legal counsel and that I must immediately inform my immediate family,
financial advisors (if any) and legal counsel that they are prohibited from
disclosing the terms of this Release and the Agreement.

 

It is
understood that I will not be in breach of the nondisclosure provisions of this
Release if I am required to disclose information pursuant to a valid subpoena
or court order, provided that I notify the Company (to the attention of the
General Counsel of the Company) as soon as practicable, but prior to the time
in which I am required to disclose information, that I have received the
subpoena or court order which may require me to disclose information
protected by this Release. Notwithstanding the foregoing, I also may disclose
the terms of this Release to government taxing authorities and/or the SEC.

 

I agree that any violation or breach by me of my nondisclosure
obligations, without limiting the Company’s remedies, shall give rise on the part of
the Company to a claim for relief to recover from me, before a court of
competent jurisdiction, any and all amounts previously paid to or on behalf of
me by the Company pursuant to Section 8 of the Agreement, but shall not
release me from the performance of my obligations under this Release.

 

I will not
apply for or otherwise seek employment with the Released Parties without their
written consent.

 

I have read
this Release carefully, acknowledge that I have been given at least 21 days to
consider all of its terms, and have been advised to consult with an attorney
and any other advisors of my choice prior to executing this Release, and I
fully understand that by signing below I am voluntarily giving up any right
which I may have to sue or bring any other claims against the Released
Parties, including any rights and claims under the Age Discrimination in
Employment Act. I also understand that I have a period of 7 days after signing
this Release within which to revoke my agreement, and that neither the Company
nor any other person is obligated to provide any benefits to me pursuant to the
Agreement until 8 days have passed since my signing of this Release without my
signature having been revoked. I understand that any revocation of this Release
must be received by the General Counsel of the Company within the seven-day
revocation period. Finally, I have not been forced or pressured in any manner
whatsoever to sign this Release, and I agree to all of its terms voluntarily. I
represent and acknowledge that no representation, statement, promise,
inducement, threat or suggestion has been made by any of the Released Parties
or by any other individual to influence me to sign this Release, except such
statements as are expressly set forth herein or in the Agreement.

 

This Release
is final and binding and may not be changed or modified.

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DATE

  	
   

  	
  Barbara L. BlackfordExhibit 10.2

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 7th day of
March, 2006, by and between Paul S. Fisher (“Executive”) and Solstice Holdings
LLC, a Delaware limited liability company (the “Company”), and at and after the
Effective Time, by and among Executive, the Company and CenterPoint Properties
Trust, a Maryland real estate investment trust (“CenterPoint”). Certain
capitalized terms used herein, unless otherwise specified, are defined in
Section 12.

 

R E C I T A L S:

 

WHEREAS,
CenterPoint owns, manages, acquires, leases and develops real estate;

 

WHEREAS,
Executive is knowledgeable and experienced in certain aspects of CenterPoint’s
business;

 

WHEREAS,
Executive and CenterPoint are parties to the Prior Agreements, which set forth
the terms and conditions of Executive’s employment prior to the Effective Time;

 

WHEREAS,
CalEast Industrial Investors, LLC, a California limited liability company (“CalEast”),
Solstice Merger Trust, a Maryland real estate investment trust (“Merger Sub”)
and CenterPoint entered into the Agreement and Plan of Merger dated December 7,
2005, and amended February 2, 2006 (the “Merger Agreement”), pursuant to which
Merger Sub will be merged with and into CenterPoint (the “Merger”) at the
effective time as defined in Section 1.3(a) of the Merger Agreement (the “Effective
Time”), and CenterPoint will become a subsidiary of the Company, a subsidiary
of CalEast;

 

WHEREAS,
the Company and Executive entered into the Employment Agreement Term Sheet
dated December 7, 2005 (the “Term Sheet”) in connection with the execution of
the Merger Agreement with respect to certain terms and conditions of Executive’s
employment with CenterPoint on and after the Effective Time;

 

WHEREAS,
Executive desires to be employed by CenterPoint, and CenterPoint desires to
employ Executive upon the terms and conditions as set forth in this Agreement;

 

WHEREAS,
it is contemplated by the Company and Executive that this Agreement, which will
supersede and replace the Prior Agreements and the Term Sheet, will be
effective only upon and following the Effective Time and at such time
CenterPoint will join and be a party to this Agreement; and

 

WHEREAS,
Executive recognizes and acknowledges that the business of CenterPoint is
highly competitive and that by reason of his employment by CenterPoint he has
and will continue to have access to confidential and proprietary information
regarding CenterPoint and its business.

 

 

NOW
THEREFORE, in consideration of the foregoing recitals and mutual promises
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.             EMPLOYMENT.
Effective as of the Effective Time, CenterPoint hereby agrees to employ
Executive under the terms and conditions set forth in this Agreement, and
Executive hereby agrees to accept such employment. The employment relationship
between CenterPoint and Executive shall be governed by this Agreement and the
general employment policies and practices of CenterPoint including, without
limitation, those policies and practices relating to confidential information
and avoidance of conflicts, to the extent such policies and practices do not
conflict with this Agreement.

 

2.             DUTIES.
Executive shall serve in the capacity specified on Schedule A, with the
duties generally associated with such position, together with such further and
additional duties of an executive nature as from time to time may be assigned
to him by the person or body specified in Schedule A, to whom or which
he is to report. Executive shall report directly to the person or body
specified in Schedule A. During the Employment Term, Executive will
devote his best efforts and his full business time and attention (exclusive of
vacation periods, holidays or periods of illness or incapacity) to the business
of CenterPoint and his duties hereunder; provided, however, that
Executive may devote a reasonable amount of his time to the management of
personal investments, and to industry, civic and community matters, so long as
such matters do not materially interfere with the performance of Executive’s
duties hereunder.

 

3.             TERM.
Subject to earlier termination of Executive’s employment as provided in Section
4, Executive’s employment shall be for an initial term commencing at the
Effective Time and ending on June 30, 2011 (the “Initial Term”). At the end of
the Initial Term, and each succeeding June 30th thereafter, the
employment of Executive shall continue upon the terms and conditions of this
Agreement set forth herein, as amended from time to time, unless CenterPoint or
Executive gives the other party written notice at least ninety (90) days prior
to the end of the Initial Term or any extended term of such party’s intention not
to extend the Employment Term and to terminate Executive’s employment. For
purposes of this Agreement, the Initial Term and any annual extension of this
Agreement shall collectively be referred to as the “Employment Term.”

 

4.             TERMINATION.
In addition to either party’s right to terminate Executive’s employment at the
end of the Employment Term as set forth in Section 3, Executive’s employment
under this Agreement shall terminate upon the occurrence of any of the
following:

 

(a)           Executive’s
death or Disability;

 

(b)           (i)
at CenterPoint’s election other than for Cause, upon delivery to Executive of
60 days’ advance written notice by CenterPoint of its intent to terminate
Executive’s employment other than for Cause, (ii) at Executive’s election for
Good Reason where such termination is not a Qualifying Termination, upon
delivery to CenterPoint of 60 days’ advance written notice by Executive of
Executive’s intent to voluntarily terminate for Good Reason, or (iii) at
Executive’s election for Good Reason where such termination is a Qualifying

 

2

 

Termination,
upon delivery to CenterPoint of 30 days’ advance written notice by Executive of
Executive’s intent to voluntarily terminate his employment for Good Reason;

 

(c)           at
CenterPoint’s election for Cause; and

 

(d)           at
Executive’s election other than for Good Reason, upon delivery to CenterPoint
of three (3) months’ advance written notice by Executive of Executive’s intent
to voluntarily terminate employment without Good Reason.

 

5.             BASE
SALARY. In consideration of the services rendered by Executive hereunder,
during the Employment Term, CenterPoint agrees to pay to Executive an annual
base salary as provided on Schedule A (the “Base Salary”) payable in
accordance with CenterPoint’s payroll policies. The Base Salary will be
reviewed at least annually and may be increased or decreased (but not decreased
below the Base Salary on the Effective Date), based on the recommendation of
the Compensation Committee, and as determined by the Board in its sole
discretion.

 

6.             INCENTIVE
ARRANGEMENTS. During the Employment Term, Executive shall be entitled to
participate in the MIP established by
the Company’s MIP Unit Member and all other incentive, equity-based and
deferred compensation plans, practices, policies and programs established by
CenterPoint or the Company (other than the Retention Equity Compensation Plan
under the Company’s Retention and Incentive Equity Compensation Program (the “Equity
Compensation Program”)) for the general benefit of similarly-situated executive
and managerial employees.

 

(a)           Annual
Cash Bonus. To the extent not already paid, on or around the Effective
Date, CenterPoint shall pay Executive a cash bonus equal to the amount
Executive would have earned from CenterPoint had the Merger not occurred and
based on the performance multiple derived from the performance of CenterPoint
and Executive during the 2005 calendar year. On or around July 1, 2006,
CenterPoint shall pay Executive a cash bonus based upon Executive’s Target
Annual Bonus Award and performance multiple as of June 30, 2006, times fifty
percent (50%). During the Employment Term, Executive shall be eligible to
participate in CenterPoint’s annual bonus plan with a target annual cash bonus
award (the “Target Annual Bonus Award”), as set forth on Schedule A,
which may be increased or decreased (but not decreased below the Target Annual
Bonus Award on the Effective Date), based on the recommendation of the
Compensation Committee, and as determined by the
Board in its sole discretion. The actual amount paid based on the Target Annual
Bonus Award will be based on Executive’s performance and the results of
CenterPoint with respect to annual goals, as recommended by the Compensation
Committee and as determined by the Board in its sole discretion (the “Actual
Annual Bonus Award”). CenterPoint shall pay each Actual Annual Bonus Award to
Executive in a single lump sum on or around the date that CenterPoint pays the
annual bonuses to its other similarly-situated executives, in accordance with
the terms of CenterPoint’s annual bonus plan.

 

(b)           Initial
Incentive Award. The Company shall grant to Executive, as a one-time award,
Initial Unvested Class A Units in the amount set forth on Schedule A
(the “Initial Incentive Award”), which shall be in lieu of the share options,
restricted shares and/or performance units that CenterPoint would have awarded
to Executive in 2006 for CenterPoint’s

 

3

 

fiscal
year 2005 performance, in the ordinary course, consistent with its past
practice. Subject to the terms and conditions set forth herein and in
accordance with the terms of the Equity Compensation Program, the Initial
Incentive Award shall no longer be subject to a substantial risk of forfeiture
on the fifth (5th) anniversary of the Effective Date.

 

(c)           MIP
Units. Executive shall be entitled to participate in the MIP with such
opportunities to receive awards of MIP Units, if any, in accordance with and
subject to the terms and conditions of the MIP, this Agreement, Executive’s MIP
Unit award agreement(s) and the MIP Unit Member Operating Agreement. Notwithstanding
anything in any of the foregoing agreements to the contrary, including, but not
limited to, the provisions relating to vesting and forfeiture upon a
termination of Executive’s employment and except as provided in this Section
6(c), any MIP Units held by Executive shall vest and become nonforfeitable upon
the occurrence of a Change in Control. Executive 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, Executive’s MIP Unit award agreement(s) and
the MIP Unit Member Operating Agreement. Such vested MIP Units shall otherwise
remain subject to the terms of the MIP, the Executive’s MIP Unit award
agreement(s), the MIP Unit Member Operating Agreement and this Agreement; provided,
however, that, upon a termination for Cause as provided in Section 4(c),
all MIP Units (whether vested or unvested, including vesting pursuant to this
Section 6(c)) held by Executive shall be immediately forfeited pursuant to
Section 9(f), and Executive will not be entitled to any further payments or
distributions and will have no further rights under the MIP on and after
Executive’s Termination Date.

 

7.             REQUIRED
INVESTMENT. (a) The amount of Executive’s initial investment in the Company
as of the Effective Date will consist of the following:  (i) all of Executive’s Initial Incentive
Award and (ii) cash (the “Cash Investment”), in each case, as set forth on Schedule
A thereto (the “Initial Investment”). Executive acknowledges and agrees
that Executive, the CEO and the other members of the Key Management Team have
committed to invest an aggregate of $20 million in the Company (the “Required
Investment”).

 

(b)           Executive
acknowledges and agrees that Executive’s Initial Investment, when aggregated
with the CEO’s Initial Investment, shall not be less than $14 million (the “Minimum
Investment”) plus the difference, if any, between the Required Investment and
the sum of (x) the Minimum Investment and (y) the aggregate value of (A) the
Initial Incentive Awards and (B) the Cash Investment in the Company by members
of the Key Management Team (other than Executive and the CEO) and the
Additional Employees, if any.

 

(c)           Executive
acknowledges and agrees that Executive, the other members of the Key Management
Team and the Additional Employees may subscribe to purchase at the Effective
Time up to an additional $7 million of 
common equity interests of the Company (the “Equity Interests”) by an
additional contribution of cash to the Company, in each case, subject to
compliance with applicable federal and state securities laws (the “Additional
Subscription”) and further acknowledge and agree that in no event shall the
total Equity Interests issued to the Key Management Team and the Additional
Employees by the Company pursuant to the terms of this Agreement and the
Company Operating Agreement exceed $27 million in the aggregate.

 

4

 

(d)           In
consideration of the Cash Investment and the Additional Subscription, if any,
Executive will receive Equity Interests of the Company with an aggregate value
equal to such aggregate amount and having the same terms as the Equity
Interests of the Company issued to CalEast on or prior to the Effective Date,
which shall be subject to the terms of the Company Operating Agreement, the
Equity Compensation Program and this Agreement. Executive will be fully vested
in the Equity Interests acquired as a result of Executive’s Cash Investment and
Additional Subscription, if any.

 

8.             OTHER
BENEFITS. During the Employment Term, Executive shall be entitled to the
following benefits, in addition to the benefits and perquisites, if any, set
forth on Schedule A:

 

(a)           life,
disability, medical insurance and other welfare benefit plans, practices,
policies and programs which CenterPoint maintains for the general benefit of
its executive and managerial employees;

 

(b)           participation
in CenterPoint’s qualified 401(k) plan, and all other savings and retirement
plans, practices, policies and programs (whether tax-qualified or not) which
CenterPoint maintains for the general benefit of its executive and managerial
employees;

 

(c)           paid
vacations and holidays in accordance with policies established by CenterPoint
for its executive and managerial employees;

 

(d)           reimbursement
for such travel, entertainment and other business expenses reasonably incurred
by Executive in connection with the performance of his duties hereunder upon
presentation by Executive to CenterPoint of substantiating evidence thereof in
such form as CenterPoint may reasonably require;

 

(e)           recognizing
that business promotion and entertainment of clients and prospective clients
are important aspects of Executive’s job responsibilities, CenterPoint will pay
club dues, membership fees and other related or similar club expenses,
including, without limitation, initiation fees and entertainment expenses for
memberships in such professional or social clubs or other organizations as
recommended by the Compensation Committee and approved by the Board, in its
sole discretion;

 

(f)            use
of an automobile, provided by CenterPoint and consistent with its policy,
including automotive insurance coverage and reimbursement for fuel and
maintenance;

 

(g)           reimbursement
for reasonable tax preparation costs; and

 

(h)           office
space, secretarial support and other assistance reasonably necessary to perform
Executive’s duties.

 

In
addition to the foregoing benefits, CenterPoint will use its best efforts to
obtain and maintain directors’ and officers’ liability insurance for the
benefit of Executive.

 

5

 

9.             PAYMENTS
IN THE EVENT OF A NON-QUALIFYING TERMINATION.

 

(a)           Accrued
Payments. If Executive’s employment with CenterPoint is terminated for any
reason, CenterPoint shall pay to Executive (i) his Base Salary at the rate in
effect on the effective date of termination of Executive’s employment (the “Termination
Date”) payable through the Termination Date, (ii) the amount of any accrued but
unused vacation pay through the Termination Date, and (iii) any expenses
Executive incurred which were not previously reimbursed as of the Termination
Date, all of which, subject to Section 19, shall be paid in a lump sum in cash
within thirty (30) days of the Termination Date.

 

(b)           Death
or Disability. If Executive’s employment is terminated due to his death or
Disability, Executive, or in the case of death, Executive’s Beneficiary shall
be entitled to receive:

 

(i)            an amount
equal to a pro rata portion of Executive’s Actual Annual Bonus Award for
CenterPoint’s prior fiscal year multiplied by a fraction, (A) the numerator of
which is the number of calendar months in which Executive was employed during
CenterPoint’s fiscal year through the Termination Date (counting a partial
calendar month as a full month) and (B) the denominator of which is twelve (12)
(the “Pro Rata Annual Bonus Award”);

 

(ii)           accelerated
vesting of Executive’s MIP Units in an amount equal to (A) the number of MIP
Units awarded to Executive as of the Termination Date times (B) a ratio
(not to exceed one (1)) of (x) one (1) plus the number of full years (without
taking into account fractional portions thereof) Executive was employed by
CenterPoint from the Effective Date through the Termination Date to (y) five
(5) years, and payment of an allocable share of the next distribution attributable
to Executive’s vested MIP Units, if any, pursuant to the terms of the Executive’s
MIP Units award agreement(s) and the MIP Unit Member Operating Agreement (all
remaining unvested MIP Units and fractional portions thereof will be forfeited
as of the Termination Date and Executive will not be entitled to any further
payments and will have no further rights under the MIP); and

 

(iii)          accelerated
vesting of any unvested Equity Interests, which shall remain subject to the
terms of the Company Operating Agreement and the required sale provisions set
forth in Section 9(h)(ii).

 

(c)           Termination
by CenterPoint Without Cause or by Executive for Good Reason. If Executive’s
employment is terminated by CenterPoint without Cause or by Executive for Good
Reason prior to the occurrence of a Qualifying Termination, conditioned upon
Executive delivering to CenterPoint a release in a form reasonably satisfactory
to CenterPoint with all periods for revocation expired and subject to Section
18, Executive shall be entitled to:

 

(i)            receive
the Pro Rata Annual Bonus Award set forth in Section 9(b)(i);

 

(ii)           receive a
monthly payment equal to the sum of (A) Executive’s monthly Base Salary in
effect on the Termination Date plus (B) one-twelfth (1/12) of Executive’s prior
year’s Actual Annual Bonus Award for a twenty-four (24) month period, with such
payments commencing on the date set forth in Section 9(g); and

 

6

 

(iii)          continue
participation in CenterPoint’s group health coverage in accordance with this
Section 9(c)(iii):

 

(A)          if
CenterPoint’s group health plan is insured on the Termination Date, CenterPoint
shall continue Executive’s active employee group health plan coverage for six
(6) months following the Termination Date under such insured group health plan;
thereafter, Executive may elect COBRA continuation coverage and for a period
not to exceed eighteen (18) months, Executive’s cost for such continued
coverage (including the continued active employee and COBRA coverage) shall not
exceed the amount Executive would otherwise be required to pay if he remained
an active employee of CenterPoint; or

 

(B)           if
CenterPoint’s group health plan is self-insured on the Termination Date,
Executive’s active employee group health plan coverage shall cease on the
Termination Date; thereafter, Executive may elect COBRA continuation coverage
and for a period not to exceed twenty-four (24) months, Executive’s cost for
such continued coverage (including the continued active employee and COBRA
coverage) shall not exceed the amount Executive would otherwise be required to
pay if he remained an active employee of CenterPoint;

 

provided,
however, that to the extent Executive becomes eligible for any other
group health coverage that is substantially similar to the group health
coverage provided in Section 9(c)(iii)(A) or (B) during the coverage period,
the continued group health plan coverage provided by CenterPoint pursuant to
this Section 9(c)(iii) shall terminate to the extent COBRA permits such termination;

 

(iv)          accelerated
vesting of Executive’s MIP Units in an amount equal to (A) the number of
MIP Units awarded to Executive as of the Termination Date times (B) a
ratio (not to exceed one (1)) of (x) the number of full years (without taking
into account fractional portions thereof) Executive was employed by CenterPoint
from the Effective Date through the Termination Date to (y) five (5) years, and
payment of an allocable share of the next distribution attributable to
Executive’s vested MIP Units, if any, pursuant to the terms of the Executive’s
MIP Units award agreement(s) and the MIP Unit Member Operating Agreement (all
remaining unvested MIP Units and fractional portions thereof will be forfeited
as of the Termination Date and Executive will not be entitled to any further
payments and will have no further rights under the MIP); and

 

(v)           accelerated
vesting of Executive’s unvested Equity Interests in an amount equal to (A) the
number of Equity Interests awarded to Executive under the Equity Compensation
Program times (B) a ratio (not to exceed one (1)) of (x) the number of full
years (without taking into account fractional portions thereof) Executive was
employed by CenterPoint from the Effective Date through the Termination Date to
(y) five (5) years, as provided in Executive’s applicable Equity Interests
award agreement, and all

 

7

 

remaining
unvested Equity Interests awarded pursuant to the Equity Compensation Program
(and fractional portions thereof) shall be forfeited. All vested Equity
Interests held by Executive shall remain subject to the terms of the Company
Operating Agreement and the put/call rights set forth in Section 9(h)(i). All
other unvested Equity Interests awarded to Executive, if any, shall be governed
by the terms of the applicable plans.

 

(d)           Termination
in Connection with Non-Renewal. In the event that Executive’s employment is
terminated because a party elects not to renew this Agreement pursuant to
Section 3 and prior to the occurrence of a Qualifying Termination, conditioned
upon Executive delivering to CenterPoint a release in a form reasonably
satisfactory to CenterPoint with all periods for revocation expired and subject
to Section 18, Executive shall be entitled to:

 

(i)            receive a
monthly payment equal to the sum of (A) his monthly Base Salary in effect on
the Termination Date plus (B) one-twelfth (1/12) of his prior year’s Actual
Annual Bonus Award for a twelve (12) month period, with such payments
commencing on the date set forth in Section 9(g);

 

(ii)           continue
participation in CenterPoint’s group health coverage in accordance with Section
9(c)(iii), except that for purposes of this Section 9(d)(ii), the reference in
Section 9(c)(iii)(A) to “eighteen (18) months” shall be changed to “six (6)
months” and the reference in Section 9(c)(iii)(B) to “twenty-four (24) months”
shall be changed to “twelve (12) months;”

 

(iii)          accelerated
vesting of Executive’s MIP Units in an amount equal to (A) the number of
MIP Units awarded to Executive as of the Termination Date times (B) a
ratio (not to exceed one (1)) of (x) the number of full years (without taking
into account fractional portions thereof) Executive was employed by CenterPoint
from the Effective Date through the Termination Date to (y) five (5) years, and
payment of an allocable share of the next distribution attributable to
Executive’s vested MIP Units, if any, pursuant to the terms of the Executive’s
MIP Units award agreement(s) and the MIP Unit Member Operating Agreement (all
remaining unvested MIP Units and fractional portions thereof will be forfeited
as of the Termination Date and Executive will not be entitled to any further
payments and will have no further rights under the MIP); and

 

(iv)          accelerated
vesting of Executive’s unvested Equity Interests as provided in Section
9(c)(v), all vested Equity Interests held by Executive shall remain subject to
the terms of the Company Operating Agreement and the put/call rights set forth
in Section 9(h)(i), and all other unvested Equity Interests awarded to
Executive, if any, shall be governed by the terms of the applicable plans.

 

(e)           Termination
by Executive Without Good Reason. In the event Executive terminates his
employment without Good Reason, Executive shall:

 

(i)            forfeit
or receive pro rata vesting of Executive’s MIP Units in accordance with this
paragraph 9(e)(i):

 

8

 

(A)          if
Executive’s Termination Date occurs before the Initial Payout Date, Executive
will forfeit all MIP Units and will have no further rights under the MIP; or

 

(B)           if
Executive’s Termination Date occurs on or after the Initial Payout Date,
subject to Executive’s execution and non-revocation of a release in a form
reasonably satisfactory to CenterPoint with all periods for revocation expired,
Executive shall vest in Executive’s MIP Units in an amount equal to (I) the
number of MIP Units awarded to Executive as of his Termination Date times (II)
the number of full years (without taking into account fractional portions thereof)
Executive was employed by CenterPoint from the Effective Date through his
Termination Date divided by ten (10), and payment of an allocable share of the
next distribution attributable to Executive’s vested MIP Units, if any,
pursuant to the terms of the Executive’s MIP Units award agreement(s) and the
MIP Unit Member Operating Agreement (all remaining unvested MIP Units and
fractional portions thereof will be forfeited as of the Termination Date and
Executive will not be entitled to any further payments and will have no further
rights under the MIP); and

 

(ii)           forfeit
all unvested Equity Interests held by Executive and all vested Equity Interests
held by Executive shall remain subject to the terms of the Company Operating
Agreement and the required sale provisions set forth in Section 9(h)(ii).

 

(f)            Termination
by CenterPoint For Cause. If Executive’s employment is terminated by
CenterPoint for Cause, except as provided in Section 9(a), Executive shall not
be eligible to receive Executive’s Base Salary or to participate in any of
CenterPoint’s incentive arrangements, employee benefit plans and as provided in
Section 8 with respect to future periods after Executive’s Termination Date,
except for the right to receive vested benefits under any of CenterPoint’s
employee benefit plans in accordance with the terms of such plans. Executive
shall immediately forfeit all MIP Units held (whether vested or unvested,
including vesting pursuant to Section 6(c)) and shall have no further rights
under the MIP. Executive shall also immediately forfeit all unvested Equity
Interests held by Executive and all vested Equity Interests held by Executive
shall remain subject to the terms of the Company Operating Agreement and this
Agreement as follows:  Executive shall be
required to sell and the Company shall be required to purchase all, but not
less than all, of the vested Equity Interests held by Executive as of the
Termination Date, including the vested Equity Interests Executive acquired
pursuant to the Equity Compensation Program, at the lesser of (x) Fair Market
Value and (y) the purchase price paid for such Equity Interests, payable within
sixty (60) days of the Termination Date, with Fair Market Value based on the
most recent Fair Market Value determination by the Company Board if made within
the preceding six (6) months (or such purchase shall be made within thirty (30)
days after and based upon the next Fair Market Value determination made by the
Company Board if such Board has not made any such determination or if the most
recent determination was made more than six (6) months before the Termination
Date and in either case the Company Board elects not to pay the purchase price
described in clause (y)). In the case of

 

9

 

vested
Equity Interests that were acquired through the Equity Compensation Program,
the purchase price for such vested Equity Interests shall equal zero.

 

(g)           Delayed
Payment. Notwithstanding any provision in this Agreement to the contrary,
if Executive’s employment is terminated pursuant to Section 3 by CenterPoint
without Cause or pursuant to Section 4(b) and Section 409A(a)(2)(B)(i) of the
Code applies to the payments described in Section 9(c) or Section 9(d), as
applicable, and Executive is a “specified employee” thereunder, CenterPoint
shall pay the Pro Rata Annual Bonus Award described in Section 9(c)(i), in the
event of a termination pursuant to Section 4(b), and begin paying the continued
salary described in Section 9(c)(ii) or Section 9(d)(i), as applicable, no
earlier than six (6) months after Executive terminates employment or such other
date as would be permissible under the Code and applicable regulations. If
Executive’s employment is terminated pursuant to Section 3 by CenterPoint
without Cause or pursuant to Section 4(b) and Section 409A(a)(2)(B)(i) of the
Code does not apply to the payments described in Section 9(c) or Section 9(d),
as applicable, or Executive is not a “specified employee” thereunder, then
CenterPoint shall pay the Pro Rata Annual Bonus Award described in Section
9(c)(i), in the event of a termination pursuant to Section 4(b), and begin
paying the continued salary described in Section 9(c)(ii) or Section 9(d)(i),
as applicable, as soon as possible after Executive’s termination of employment
but in no event later than 30 days after the Termination Date.

 

(h)           Put/Call
Rights/Required Sale.

 

(i)            Put/Call
Rights. In the event of termination of Executive’s employment without
Cause, for Good Reason or as a result of non-renewal of this Agreement,
Executive shall have a put option to require, by providing the Company with a
notice (the “Put Notice”) within thirty (30) days after the Termination Date,
the Company to purchase within thirty (30) days after the Company’s receipt of
the Put Notice all, but not less than all, of the vested Equity Interests held
by Executive as of the Termination Date, including the vested Equity Interests
Executive acquired pursuant to the Equity Compensation Program, at Fair Market
Value based on the most recent Fair Market Value determination made by the
Company Board if made within the preceding six (6) months (or such purchase
will be made within thirty (30) days after and based upon the next Fair Market
Value determination made by the Company Board if such Board has not yet made
any such determination or if the most recent determination was made more than
six (6) months before the Termination Date). If such put option is not
exercised by delivery of a Put Notice within the thirty (30) day period
described above, then the Company shall have a call option to purchase on the
next Scheduled Liquidity Event all, but not less than all, of the vested Equity
Interests in the Company held by Executive as of the Termination Date,
including the vested Equity Interests acquired through the Equity Compensation
Program, at Fair Market Value determined at the next Scheduled Liquidity Event.
To exercise the call option, the Company shall notify Executive on or before
the next Scheduled Liquidity Event.

 

(ii)           Required
Sale. In the event of termination of Executive’s employment without Good
Reason or as a result of Executive’s death or Disability, Executive shall be
required to sell and the Company shall be required to purchase within sixty
(60) days after the Termination Date all, but not less than all, of the vested
Equity Interests held by

 

10

 

Executive
as of the Termination Date, including the vested Equity Interests Executive
acquired pursuant to the Equity Compensation Program, at Fair Market Value
based on the most recent Fair Market Value determination made by the Company
Board if made within the preceding six (6) months (or such purchase will be
made within thirty (30) days after and based upon the next Fair Market Value determination
made by the Company Board if such Board has not yet made any such determination
or if the most recent determination was made more than six (6) months preceding
the Termination Date).

 

10.           PAYMENTS
IN THE EVENT OF A QUALIFYING TERMINATION.

 

(a)           Benefits
Payable. Subject to Sections 10(b) and 10(c), if Executive experiences a
Qualifying Termination (other than a Qualifying Termination as provided in
Section 12(eee)(iv)), CenterPoint shall provide Executive the following
severance benefits (“Severance Benefits”):

 

(i)            A payment
equal to the following:

 

(A)          the accrued
payments set forth in Section 9(a) and the Pro Rata Annual Bonus Award set
forth in Section 9(b)(i);

 

(B)           three (3)
times Executive’s Base Salary in effect on the date of the Qualifying
Termination or, if greater, three (3) times Executive’s Base Salary in effect
immediately prior to the Change in Control;

 

(C)           three (3)
times Executive’s highest Actual Annual Bonus Award paid during the Employment
Term;

 

(D)          payment or
reimbursement (at Executive’s option) for outplacement services of a scope and
nature customary for executives holding comparable positions and provided by a
nationally-recognized outplacement firm of Executive’s selection, for a period
of up to two (2) years commencing on the date of Executive’s Qualifying
Termination; provided, however, that the aggregate amount of such
reimbursement shall not exceed twenty-five percent (25%) of Executive’s Base
Salary in effect as of the date of the Qualifying Termination; and

 

(E)           all other
compensation and benefits to which Executive has a vested right on the date of
the Qualifying Termination, except to the extent Executive elects to receive
payment of such compensation at a later date;

 

(ii)           accelerated
vesting of all of Executive’s unvested Equity Interests, which shall remain
subject to the terms of the Company Operating Agreement and the put/call rights
set forth in Section 9(h)(i); and

 

11

 

(iii)          except
as otherwise provided in this Section 10(a)(iii) and subject to Section 19,
CenterPoint shall continue Executive’s participation in CenterPoint’s group
health plan coverage (at the same cost to Executive and at the same coverage
level in effect on the date of the Qualifying Termination) for thirty-six (36)
months from the date of the Qualifying Termination (the “Continuation Period”).
The maximum required period under COBRA shall run concurrently with the
Continuation Period; provided, however, that to the extent
Executive becomes eligible for any other substantially similar group health
coverage during the Continuation Period, the continued group health plan
coverage provided by CenterPoint pursuant to this Section 10(a)(iii) shall
terminate to the extent COBRA permits such termination.

 

(iv)          To the
extent Section 409A(a)(2)(B)(i) of the Code applies to the Severance Benefits
and Executive is a “specified employee” thereunder, all of the Severance
Benefits described in Section 10(a)(i) shall be paid in cash to Executive in a
single lump sum no earlier than six (6) months after the effective date of the
Qualifying Termination or such other date as would be permissible under such
Code provision. To the extent Section 409A(a)(2)(B)(i) of the Code does not
apply to the Severance Benefits or Executive is not a “specified employee”
thereunder, all of the Severance Benefits described in Section 10(a)(i) shall
be paid in cash to Executive in a single lump sum as soon as possible after the
effective date of the Qualifying Termination (but in no event later than 30
days after such date). Notwithstanding the preceding two sentences to the
contrary, the Severance Benefits described in Section 10(a)(i)(D) shall be paid
or reimbursed to Executive following the later of the applicable payment date
set forth in the preceding two sentences or the date Executive promptly submits
an invoice of the firm providing the outplacement services described in such
subsection. Executive shall not be obligated to seek other employment or take
any other action to mitigate the amounts payable to Executive under this
Agreement.

 

(b)           Qualifying
Termination Due to Non-Renewal. In the event that Executive’s employment is
terminated because a party elects not to renew this Agreement pursuant to
Section 3 within twenty-four (24) months of a Change in Control, conditioned
upon Executive delivering to CenterPoint a release in a form reasonably
satisfactory to CenterPoint with all periods for revocation expired and subject
to Section 18, Executive shall be entitled to receive:

 

(i)            the
accrued payments set forth in Section 9(a);

 

(ii)           the Base
Salary amount set forth in Section 10(a)(i)(B), Actual Annual Bonus Award
amount set forth in Section 10(a)(i)(C) and continued group health plan
coverage specified in Section 10(a)(iii), except that for purposes of this
Section 10(b)(ii), references in Sections 10(a)(i)(B) and (C) to “three (3)”
shall be changed to “two (2)” and references in Section 10(a)(iii) to “thirty-six
(36) months” shall be changed to “twenty-four (24) months”; and

 

(iii)          the
accelerated vesting of Executive’s unvested Equity Interests as provided in
Section 9(c)(v), all vested Equity Interests held by Executive shall remain
subject to the terms of the Operating Agreement and the put/call rights set
forth in

 

12

 

Section
9(h)(i), and all other unvested Equity Interests awarded to Executive, if any,
shall be governed by the terms of the applicable plans;

 

provided,
however, that the payments and benefits provided pursuant to this
Section 10(b) shall be subject to the provisions of Section 10(a)(iv).

 

(c)           Severance
Benefits Limit. Notwithstanding any provision of this Agreement to the
contrary, to the extent the Severance Benefits would constitute a “parachute
payment,” as defined in Section 280G(b)(2) of the Code, Executive shall be
entitled to receive the Severance Benefits unless the aggregate value of the
(i) after-tax amount that would be retained by Executive (after taking into
account all federal, state and local income taxes payable by Executive (the “Income
Taxes”) and the amount of any excise taxes payable by Executive pursuant to
Section 4999 of the Code (the “Excise Taxes”)) if Executive were to receive the
Severance Benefits is less than (ii) the after-tax amount that would be
retained by Executive (after taking into account all Income Taxes and Excise
Taxes payable by Executive) if Executive were to receive the maximum amount of
the Severance Benefits that Executive could receive without being subject to
the Excise Taxes (the “Reduced Payments”), in which case Executive shall be
entitled only to receive the Reduced Payments. CenterPoint’s auditors shall
determine the application of Section 280G of the Code to the Severance Benefits
and shall perform the calculations necessary to determine the amounts and
values described in this Section 10(c).

 

11.           RESTRICTIVE
COVENANTS. The non-competition, non-solicitation and confidentiality
provisions found in this Section 11 replace and supersede any prior or existing
agreement by and between Executive and CenterPoint with respect to the subject
matter therein, including but not limited to the Prior Agreements. In
consideration of the benefits payable to Executive under this Agreement,
Executive agrees as follows:

 

(a)           Covenant
Not To Compete. Executive agrees that during the Employment Term and for a
period of one (1) year thereafter if Executive’s employment terminates due to
non-renewal of Executive’s employment pursuant to Section 3 prior to the
occurrence of a Qualifying Termination, and two (2) years thereafter if
Executive’s employment terminates for any other reason, including termination
due to non-renewal of Executive’s employment pursuant to Section 3 within
twenty-four (24) months of a Change in Control, (the “Non-Competition Period”),
Executive will not directly or indirectly, in any market which is served by
CenterPoint or any Subsidiary or Affiliate of CenterPoint or which CenterPoint
or any Subsidiary or Affiliate of CenterPoint is actively preparing to serve,
engage or participate (whether as an owner, officer, partner, principal, joint
venturer, shareholder, director, member, manager, investor, employee,
independent contractor, consultant, or otherwise) in any other company or
entity primarily engaged in the business of acquiring, owning, developing,
operating, leasing, and/or managing warehouse, airport, or industrial real
estate for development and investment purposes or any business which provides
consulting, leasing, management, or brokerage services to such businesses (the “Real
Estate Business”), subject to the following exceptions:

 

(i)            Executive
may continue to be a limited partner in any limited partnership engaged in the
Real Estate Business in which he is a limited partner on the date of this
Agreement; and

 

13

 

(ii)           Executive
may engage in such other activities related to the Real Estate Business as
CenterPoint’s independent directors from time to time may approve; provided,
however, that in no event shall any such activities interfere with the
performance of Executive’s duties under this Agreement.

 

Executive
agrees and acknowledges that the markets covered by the restrictions set forth
in this Section 11(a) specifically include, but are not limited to, any area within
two hundred (200) miles of any property that CenterPoint or the Company owns,
manages, acquires, leases or develops.

 

(b)           Non-Solicitation.
During the Employment Term and for a period of three (3) years thereafter (the “Non-Solicitation
Period”), Executive shall not (i) employ, retain, solicit for employment or
retention, knowingly assist in the employment or retention of, or seek to
influence or induce to leave the employment or service of CenterPoint or any
Subsidiary or Affiliate of CenterPoint any person who is employed or otherwise
engaged by CenterPoint or any Subsidiary or Affiliate of CenterPoint, or (ii)
induce or attempt to induce any customer, supplier, licensee, or other business
relation of CenterPoint or any Subsidiary or Affiliate of CenterPoint to cease
doing business with CenterPoint or any Subsidiary or Affiliate of CenterPoint
or otherwise interfere with the relationship between CenterPoint or any
Subsidiary or Affiliate of CenterPoint and such business relation.

 

(c)           Nondisclosure
and Nonuse of Confidential Information.

 

(i)            Executive
shall not disclose or use at any time, either during the Employment Term or
thereafter, any Confidential Information (as defined below) of which Executive
is or becomes aware, whether or not such information is developed by him,
except to the extent that such disclosure or use is directly related to and
required by Executive’s performance of duties assigned to Executive by
CenterPoint. Executive shall take all appropriate steps to safeguard
Confidential Information and to protect it against disclosure, misuse,
espionage, loss and theft.

 

(ii)           As used in
this Agreement, the term “Confidential Information” means information that is
not generally known to the public and that is used, developed or obtained by CenterPoint
or any Subsidiary or Affiliate of CenterPoint, the Company or any subsidiary,
affiliate, or controlling entity of the Company in connection with their
businesses. Confidential Information shall not include (i) any information that
has been published in a form generally available to the public prior to the
date Executive proposes to disclose or use such information, and (ii) any
information that Executive is legally required to disclose. Information shall
not be deemed to have been published merely because individual portions of the
information have been separately published, but only if all material features
comprising such information have been published in combination.

 

(d)           Specific
Performance. The parties agree that Executive’s services are of a special,
unique and extraordinary character, that it would be extremely difficult to
quantify the money damages which would accrue to CenterPoint by reason of
Executive’s failure to perform any of his obligations under this Section 11,
that it would be extremely difficult to replace such services, and that any
violation of the provisions of this Section 11 likely would be highly

 

14

 

injurious
to CenterPoint. By reason of the foregoing, Executive consents and agrees that
if he violates any of the provisions of this Section 11 CenterPoint shall be
entitled, in addition to any other rights and remedies that it may have,
including money damages, to apply to any court of law or equity of competent
jurisdiction for specific performance and/or injunctive or other relief in
order to enforce or prevent any continuing violation of the provisions hereof. Therefore,
if CenterPoint shall institute any action or proceeding to enforce the
provisions of this Section 11 against Executive, Executive hereby waives the
claim or defense that there is an adequate remedy at law and agrees in any such
action or proceeding not to interpose the claim or defense that such remedy
exists at law. The parties hereby specifically affirm the appropriateness of
injunctive or other equitable relief in any such action.

 

(e)           Breach.
In the event that CenterPoint hereafter believes that Executive has breached
any of the covenants of this Agreement, it shall notify Executive of such
alleged breach, setting forth the substance of said alleged breach. Within ten
(10) days from receipt by Executive of such notice, Executive either shall
remedy said alleged breach or provide CenterPoint with evidence that the
activity concerned was permitted by the provisions of this Agreement. Accordingly,
Executive acknowledges, consents and agrees that, in addition to any other
rights or remedies that CenterPoint may have at law, in equity or under this
Agreement, upon adequate proof of Executive’s violation of any such provision
of this Agreement, CenterPoint will be entitled to immediate injunctive relief
and may obtain a temporary order restraining any threatened or further breach,
without the necessity of proof of actual damage. Without limiting the
applicability of this Section 11(e) or in any way affecting the right of
CenterPoint to seek equitable remedies hereunder, in the event that Executive
breaches any of the provisions of this Section 11 or engages in any activity
that would constitute a breach save for Executive’s action being in a state
where any of the provisions of Section 11 is not enforceable as a matter of
law, then CenterPoint’s obligation to pay any remaining severance compensation
and benefits that have not already been paid to Executive pursuant to Section 9
or 10, as applicable, shall be terminated.

 

12.           DEFINITIONS.

 

(a)           “Actual
Annual Bonus Award” has the meaning specified in Section 6(a).

 

(b)           “Additional
Employees” means any additional employees selected by the CenterPoint
Management  Team and approved in writing
by the Company to invest in Equity Interests of the Company on or prior to the
Effective Date on terms that are no more favorable to each Additional Employee
than the terms specified in this Agreement (subject to compliance with applicable
federal and state securities laws).

 

(c)           “Additional
Subscription” has the meaning set forth in Section 7(c).

 

(d)           “Affiliate”
has the meaning set forth in the Company Operating Agreement.

 

(e)           “Agreement”
has the meaning set forth in the introductory paragraph of this agreement.

 

(f)            “Base
Salary” has the meaning specified in Section 5.

 

15

 

(g)           “Beneficiary”
means the person or persons designated by Executive, in a writing provided to
CenterPoint prior to Executive’s death, to receive amounts payable to Executive
under this Agreement upon his death. Subject to such exception, in the absence
of such a written beneficiary designation, the Beneficiary shall be Executive’s
surviving spouse, or if none, Executive’s estate.

 

(h)           “Board”
means the Board of Trustees of CenterPoint.

 

(i)            “CalEast”
has the meaning set forth in the fourth (4th) recital of this
Agreement.

 

(j)            “Cash
Investment” has the meaning set forth in Section 7(a).

 

(k)           “Cause”
means the occurrence of any one or more of the following as determined in the
good faith and reasonable judgment of the Board:

 

(i)            Executive’s
commission of a felony;

 

(ii)           Executive’s
commission of fraud with respect to CenterPoint, the Company or any of their
Subsidiaries;

 

(iii)          Executive’s
misappropriation of any material funds or assets of CenterPoint, the Company or
any of their Subsidiaries or any of their employees, customers or suppliers;

 

(iv)          Executive’s
gross negligence or willful misconduct in the performance of his duties
hereunder, which causes financial or reputational harm to the business or
operations of CenterPoint, the Company or any of their Subsidiaries, and which,
if curable, has not been cured within fifteen (15) days’ written notice thereof
from the Board;

 

(v)           Executive’s
repeated failure to perform his duties after written notice from the Board and
such failure has not been cured within fifteen (15) days’ written notice
thereof from the Board; or

 

(vi)          any other
material breach by Executive of this Agreement or any policy of CenterPoint,
the Company or any of their Subsidiaries, and which, if curable, has not been
cured within fifteen (15) days’ written notice thereof from the Board.

 

(l)            “CenterPoint”
has the meaning set forth in the introductory paragraph of this Agreement.

 

(m)          “CenterPoint
Management Team” means the CEO and the CFO.

 

(n)           “CenterPoint
Members” has the meaning set forth in the Company Operating Agreement.

 

(o)           “CEO”
means the Chief Executive Officer of CenterPoint.

 

16

 

(p)           “CFO”
means the Chief Financial Officer of CenterPoint.

 

(q)           “Change
in Control” means the first to occur of any one or more of the following:

 

(i)            any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act), other than CalEast and its Affiliates, acquires
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of (A) more than fifty percent (50%) of the combined voting power
of the then outstanding Voting Securities of CenterPoint or the Company or (B)
more than fifty percent (50%) of the total equity securities of CenterPoint or
the Company having pari passu
economic and other rights and privileges (but not voting power), as the equity securities
beneficially owned by CalEast and CenterPoint Members immediately after
completion of the Merger; provided, however, that any acquisition
of securities by any employee benefit plan (or related trust) sponsored or
maintained by CenterPoint or the Company shall not constitute a Change in
Control; or

 

(ii)           the number
of designees to the Company Board nominated by CalEast cease for any reason to
constitute at least a Majority of the Company Board; or

 

(iii)          CenterPoint
or the Company consummates a reorganization, merger or consolidation, unless,
following such reorganization, merger or consolidation, all of the following
are true:

 

(A)          more than
fifty percent (50%) of the combined voting power of the then outstanding Voting
Securities of CenterPoint or the Company, as applicable or the Successor are
then beneficially owned, directly or indirectly, by the individual, entity or
group who beneficially owned the Controlling Interest immediately prior to such
reorganization, merger or consolidation; and

 

(B)           at least a
Majority of the members of the Company Board or the board of directors of the
Successor, if applicable, were designees of CalEast at the time of the
execution of the initial agreement providing for such reorganization, merger or
consolidation; or

 

(iv)          the
shareholders of CenterPoint approve (A) a complete liquidation or dissolution
of CenterPoint or (B) the sale or other disposition of all or substantially all
of the assets of CenterPoint; or

 

(v)           an initial
public offering of CenterPoint.

 

Notwithstanding paragraphs (i), (ii), (iii) and (v) of
this Section 12(q), in no event will a Change in Control be deemed to occur:

 

(vi)          upon
consummation of the Merger;

 

(vii)         as
result of a change in the status of CenterPoint as a “real estate investment trust”
under Section 856 of the Code; or

 

17

 

(viii)        if
CalEast or CalEast’s Affiliates maintain a direct or indirect Controlling
Interest in CenterPoint or in an entity that maintains a direct or indirect Controlling
Interest in CenterPoint.

 

Notwithstanding
any of the foregoing, the transaction contemplated in the Merger Agreement
shall not constitute a Change in Control for purposes of this Agreement, the
Prior Agreements or any other agreements in effect prior to or on and after the
Effective Date between CenterPoint and Executive.

 

(r)            “COBRA”
means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
from time to time.

 

(s)           “Code”
means the Internal Revenue Code of 1986, as amended.

 

(t)            “Company”
has the meaning specified in the introductory paragraph of this Agreement.

 

(u)           “Company
Board” means the board of managers of the Company, as provided in the Company
Operating Agreement.

 

(v)           “Company
Operating Agreement” means that certain Amended and Restated Limited Liability
Company Agreement of the Company, as may be amended from time to time, dated
March 7, 2006.

 

(w)          “Compensation
Committee” means the Compensation Committee of the Board (or such other
committee of the Board that may be responsible for executive compensation).

 

(x)            “Continuation
Period” has the meaning set forth in Section 10(a)(iii).

 

(y)           “Controlling
Interest” in an entity means beneficial ownership of more than fifty percent
(50%) of the equity securities representing more than fifty percent (50%) of
the voting power of the outstanding equity securities of the entity.

 

(z)            “Disability”
shall mean the Board’s reasonable determination based upon medical evidence (to
be provided by a mutually agreed upon physician) that Executive is no longer
able to adequately perform his duties (with or without reasonable
accommodation) due to physical or mental illness.

 

(aa)         “Effective
Date” means the date on which the Effective Time occurs.

 

(bb)         “Effective
Time” has the meaning specified in the fourth (4th) recital of this
Agreement.

 

(cc)         “Employment
Term” has the meaning specified in Section 3.

 

(dd)         “Equity
Compensation Program” has the meaning specified in Section 6.

 

(ee)         “Equity
Interests” has the meaning specified in Section 7(c) of this Agreement.

 

18

 

(ff)           “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(gg)         “Excise
Taxes” has the meaning specified in Section 10(c).

 

(hh)         “Executive”
has the meaning specified in the introductory paragraph of this Agreement.

 

(ii)           “Fair
Market Value” has the meaning specified in the Company Operating Agreement.

 

(jj)           “Good
Reason” shall mean the occurrence, without Executive’s prior written consent,
of any one or more of the following:

 

(i)            a
relocation of Executive of more than fifty (50) miles from the place where
Executive was located at the time of a Change in Control;

 

(ii)           a
reduction in Executive’s Base Salary below the Base Salary on the Effective
Date;

 

(iii)          a
material reduction in the benefits provided to Executive pursuant to Section 8,
except for across-the-board reductions of such benefits for all senior
management of CenterPoint;

 

(iv)          a material
breach of the Agreement by CenterPoint; or

 

(v)           a
reduction of Executive’s Target Annual Bonus Award within twenty-four (24)
months of a Change in Control.

 

Notwithstanding the
foregoing, the transactions contemplated in the Merger Agreement shall not
constitute a basis upon which to claim termination for Good Reason.

 

(kk)         “Guidance”
has the meaning set forth in Section 19.

 

(ll)           “Income
Taxes” has the meaning set forth in Section 10(c).

 

(mm)       “Initial
Incentive Award” has the meaning set forth in Section 6(b) of this Agreement.

 

(nn)         “Initial
Investment” has the meaning specified in Section 7(a).

 

(oo)         “Initial
Term” has the meaning specified in Section 3.

 

(pp)         “Initial
Unvested Class A Units” has the meaning set forth in the Equity Compensation
Program.

 

(qq)         “Key
Management Team” means the CenterPoint Management Team and up to ten (10) other
senior executives of CenterPoint who enter into new employment agreements with
the Company and CenterPoint effective at the Effective Time.

 

19

 

(rr)           “Majority”
has the meaning set forth in the Company Operating Agreement.

 

(ss)         “Merger”
has the meaning specified in the fourth (4th) recital of this
Agreement.

 

(tt)           “Merger
Agreement” has the meaning specified in the fourth (4th) recital of
this Agreement.

 

(uu)         “Merger
Sub” has the meaning specified in the fourth (4th) recital of this
Agreement.

 

(vv)         “Minimum
Investment”  has the meaning specified in
Section 7(b).

 

(ww)       “MIP”
means the Management Incentive Plan established by the MIP Unit Member, as
amended from time to time.

 

(xx)          “MIP
Unit” has the meaning set forth in the MIP Unit Member Operating Agreement.

 

(yy)         “MIP
Unit Member” has the meaning set forth in the Company Operating Agreement.

 

(zz)          “MIP
Unit Member Operating Agreement” means the operating agreement with respect to
the Company’s MIP Unit Member.

 

(aaa)       “Non-Competition
Period” has the meaning specified in Section 11(a).

 

(bbb)      “Non-Solicitation
Period” has the meaning specified in Section 11(b).

 

(ccc)       “Prior
Agreements” means any agreements between CenterPoint and the Executive in
effect prior to the Effective Date, including, the Employment and Severance
Agreement and the Non-Competition, Non-Solicitation and Confidentiality
Agreement, effective July 1, 2005, by and between CenterPoint and Executive.

 

(ddd)      “Pro
Rata Annual Bonus Award” has the meaning specified in Section 9(b)(i).

 

(eee)       “Qualifying
Termination” means the occurrence of any one or more of the following:

 

(i)            CenterPoint’s
termination of Executive’s employment other than for Cause within twenty-four
(24) months following a Change in Control;

 

(ii)           Executive’s
voluntary termination of employment for Good Reason within twenty-four (24)
months following a Change in Control;

 

(iii)          a
successor of CenterPoint fails to assume expressly CenterPoint’s entire obligations
under this Agreement prior to becoming such a successor as required by Section
13(a)(ii); or

 

20

 

(iv)          the Board’s
election not to renew the term of this Agreement as provided in Section 3
within twenty-four (24) months following a Change in Control;

 

provided, however, that a
Qualifying Termination shall not include a termination of Executive’s
employment by reason of death, Disability, Executive’s voluntary termination
other than for Good Reason, CenterPoint’s termination of Executive’s employment
for Cause; provided, further, that the Merger shall not
constitute a Qualifying Termination for purposes of this Agreement or any Prior
Agreements. Notwithstanding the foregoing, if Executive’s employment is terminated
before a Change in Control and Executive can reasonably demonstrate that the
termination by CenterPoint or the actions constituting Good Reason for
termination by Executive were at the request of a third party who had indicated
an intention or taken steps reasonably calculated to effect a Change in Control
who then effects a Change in Control, then the date of the Change in Control
shall be deemed to be the date immediately prior to Executive’s termination of
employment.

 

(fff)         “Real
Estate Business” has the meaning set forth in Section 11(a).

 

(ggg)      “Reduced
Payments” has the meaning specified in Section 10(c).

 

(hhh)      “Required
Investment” has the meaning specified in Section 7(a).

 

(iii)          “Scheduled
Liquidity Event” has the meaning set forth in the Company Operating Agreement.

 

(jjj)          “Section”
shall, unless the context otherwise requires, mean a section of this Agreement.

 

(kkk)       “Severance
Benefits” has the meaning specified in Section 10(a).

 

(lll)          “Subsidiary”
means a United States or foreign corporation with respect to which CenterPoint
owns, directly or indirectly, fifty percent (50%) or more of the then
outstanding common shares.

 

(mmm)    “Successor”
has the meaning set forth in the Company Operating Agreement.

 

(nnn)      “Target
Annual Bonus Award” has the meaning specified in Section 6(a).

 

(ooo)      “Term
Sheet” has the meaning specified in the fifth (5th) recital of this
Agreement.

 

(ppp)      “Termination
Date” has the meaning set forth in Section 9(a).

 

13.           ASSIGNMENT.

 

(a)           Assignment
by CenterPoint.

 

(i)            This
Agreement shall be binding upon, and shall inure to the benefit of CenterPoint
and any successor. The Company or CenterPoint may assign and transfer

 

21

 

this
Agreement, and delegate its duties hereunder, to a Subsidiary of CenterPoint or
the Company.

 

(ii)           CenterPoint
shall require any Successor to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that CenterPoint would be
required to perform if no such succession were to take place.

 

(b)           Executive’s
Successors. This Agreement shall inure to the benefit of and be enforceable
by Executive’s personal or legal representatives, executors, and
administrators, successors, heirs, distributees, devisees, and legatees. If
Executive should die while any amounts payable to Executive under this
Agreement remain outstanding, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to the
Beneficiary.

 

14.           NOTICES.
All notices required or permitted to be given under this Agreement shall be in
writing, signed by the party giving notice, and sent by personal messenger,
facsimile, overnight mail, courier service or deposited, postage prepaid,
certified mail, return receipt requested, in the United States mail, and
addressed as provided in Schedule A, if to Executive,

 

if to the Company:

 

Solstice Holdings LLC

c/o LaSalle Investment
Management

200 East Randolph Drive

Chicago, Illinois 60601

 

if to CenterPoint:

 

CenterPoint Properties
Trust

Attn:  General Counsel

1808 Swift Road

Oak Brook, IL  60523-1501

Facsimile:  630-586-8010

 

Notices
sent by personal messenger, facsimile, overnight mail or courier service shall
be deemed received upon delivery of same. Notices sent by United States mail
shall be deemed received three (3) days after deposit in the United States mail
service.

 

15.           ENTIRE
AGREEMENT. This Agreement supersedes the Prior Agreements, the Term Sheet
and any other prior agreements or understandings, oral or written, express or
implied, between Executive and CenterPoint, with respect to the subject matter
hereof and constitutes the entire agreement of the parties with respect thereto.
No agreements other than the Company Operating Agreement, the MIP Unit Member
Operating Agreement, agreements evidencing any rights to or awards of Equity
Interests of the Company under the Equity Compensation Program and any evidence
of award relating to MIP Units granted under the MIP or representations, oral
or otherwise, express or implied, with respect to the subject matter hereof
have been made by either party which are not expressly set forth in this
Agreement. The

 

22

 

captions
of this Agreement are not part of the provisions hereof and shall be of no
effect. The parties hereby agree that the termination hereunder of the Prior
Agreements will not constitute a Qualifying Termination for purposes of the
terms of any Prior Agreement, and CenterPoint and Executive waive any express
assumption and performance by a successor provisions set forth in the Prior
Agreements.

 

16.           ENFORCEMENT.
Following a Qualifying Termination, CenterPoint shall reimburse Executive, on
an after-tax basis, for the reasonable fees and expenses (including legal fees
and disbursements) incurred by Executive in a good faith effort to enforce
Executive’s right to receive any of the Severance Benefits, regardless of the
outcome of such effort. CenterPoint shall reimburse Executive for such fees and
expenses on a monthly basis within ten (10) days after Executive’s request for
reimbursement accompanied by evidence Executive incurred such fees and expenses.
If Executive does not prevail (after exhaustion of all available judicial
remedies) in respect of a claim by Executive or by CenterPoint hereunder, and
CenterPoint establishes to the satisfaction of a court of competent
jurisdiction that Executive had no reasonable basis for Executive’s claim
hereunder, or for Executive’s response to CenterPoint’s claim hereunder, and
acted in bad faith, no further reimbursement for legal fees and expenses shall
be due to Executive in respect of such claim, and Executive shall refund any
amounts previously reimbursed hereunder with respect to such claim.

 

17.           LATE
PAYMENTS. Following a Qualifying Termination, if CenterPoint fails to pay
any of the Severance Benefits when due, then CenterPoint shall pay interest on
such amount at a rate equal to the highest rate of interest charged by
CenterPoint’s principal lender.

 

18.           MITIGATION
AND OFFSET. In no event shall Executive be obligated to seek other
employment or take any other action to mitigate the amounts payable to
Executive under any provision of this Agreement. If Executive’s employment
terminates pursuant to Section 4(b) and such termination is not a Qualifying
Termination or because a party elects not to renew this Agreement pursuant to
Section 3 and, in either case, Executive becomes entitled to receive
compensation from a subsequent employer prior to the expiration of the
twenty-four (24) month or twelve (12) month period described in Section
9(c)(ii) or 9(d)(i), as applicable, the monthly amounts payable to Executive
pursuant to Section 9(c)(ii) or 9(d)(i), as applicable, shall be reduced by the
monthly amount Executive is entitled to receive from such subsequent employer.

 

19.           COMPLIANCE
WITH SECTION 409A OF THE CODE. This Agreement is intended to comply and
shall be administered in a manner that is intended to comply with Section 409A
of the Code and shall be construed and interpreted in accordance with such
intent. To the extent that a payment and/or benefit is subject to Section 409A
of the Code, it shall be paid in a manner that will comply with Section 409A of
the Code, including proposed, temporary or final regulations or any other guidance
issued by the Secretary of the Treasury and the Internal Revenue Service with
respect thereto (the “Guidance”). Any provision of this Agreement that would
cause a payment and/or benefit to fail to satisfy Section 409A of the Code
shall have no force and effect until amended to comply with Code Section 409A
(which amendment may be retroactive to the extent permitted by the Guidance).

 

23

 

20.           WITHHOLDING
OF TAXES. CenterPoint may withhold from any amounts payable under this
Agreement all federal, state, city, local or other taxes as CenterPoint is
required to withhold pursuant to any applicable law or government regulation or
ruling.

 

21.           CONTINUED
AVAILABILITY AND COOPERATION.

 

(a)           In
the event of termination of Executive’s employment, Executive shall cooperate
fully with CenterPoint and with CenterPoint’s counsel in connection with any
present and future actual or threatened litigation or administrative proceeding
involving CenterPoint that relates to events, occurrences or conduct occurring
(or claimed to have occurred) during the Employment Term. This cooperation by
Executive will include, but not be limited to:

 

(i)            making
himself reasonably available for interviews and discussions with CenterPoint’s
counsel as well as for depositions and trial testimony;

 

(ii)           if
depositions or trial testimony are to occur, making himself reasonably
available and cooperating in the preparation therefor as and to the extent that
CenterPoint or CenterPoint’s counsel reasonably requests;

 

(iii)          refraining
from impeding in any way CenterPoint’s prosecution or defense of such
litigation or administrative proceeding; and

 

(iv)          cooperating
fully in the development and presentation of CenterPoint’s prosecution or
defense of such litigation or administrative proceeding.

 

(b)           Executive
will be reimbursed by CenterPoint for reasonable travel, lodging, telephone and
similar expenses, as well as reasonable attorneys’ fees (if independent legal
counsel is necessary), incurred in connection with any cooperation,
consultation and advice rendered under this Agreement after Executive’s
termination of employment. Executive shall not unreasonably withhold Executive’s
availability for such cooperation, consultation and advice.

 

22.           GOVERNING
LAW. This Agreement shall be governed by and construed in accordance with
the internal laws of the State of Illinois, without reference to principles of
conflict of laws.

 

23.           VALIDITY/SEVERABILITY.
If any provision of this Agreement or the application of any provision hereof
to any person or circumstances is held invalid, unenforceable or otherwise
illegal, the remainder of this Agreement and the application of such provision
to any other person or circumstances will not be affected, and the provision so
held to be invalid, unenforceable or otherwise illegal will be reformed to the
extent (and only to the extent) necessary to make it enforceable, valid or
legal. To the extent any provisions held to be invalid, unenforceable or
otherwise illegal cannot be reformed, such provisions are to be stricken
herefrom and the remainder of this Agreement will be binding on the parties and
their successors and assigns as if such invalid or illegal provisions were
never included in this Agreement from the first instance.

 

24

 

24.           SURVIVAL
OF PROVISIONS. Notwithstanding any other provision of this Agreement, the
parties’ respective rights and obligations under Sections 9, 10, 11, 16 and 21
will survive any termination or expiration of this Agreement or the termination
of Executive’s employment for any reason whatsoever.

 

25.           REPRESENTATIONS.

 

(a)           Executive
hereby represents that he is not subject to any restriction of any nature
whatsoever on his ability to enter into this Agreement or to perform his duties
and responsibilities hereunder, including, but not limited to, any covenant not
to compete with any former employer, any covenant not to disclose or use any
non-public information acquired during the course of any former employment or
any covenant not to solicit any customer of any former employer.

 

(b)           Executive
hereby represents that, except as he has disclosed in writing to CenterPoint,
he is not bound by the terms of any agreement with any previous employer or
other party to refrain from using or disclosing any trade secret or
confidential or proprietary information in the course of Executive’s employment
with CenterPoint or to refrain from competing, directly or indirectly, with the
business of such previous employer or any other party.

 

(c)           Executive
further represents that, to the best of his knowledge, his performance of all
the terms of this Agreement and his employment by CenterPoint does not and will
not breach any agreement with another party, including without limitation any
agreement to keep in confidence proprietary information, knowledge or data
Executive acquired in confidence or in trust prior to his employment with
CenterPoint, and that he will not knowingly disclose to CenterPoint or induce
CenterPoint to use any confidential or proprietary information or material
belonging to any previous employer or others.

 

26.           AMENDMENT;
WAIVER. This Agreement may not be modified, amended or waived in any manner
except by an instrument in writing signed by all parties hereto. No waiver by
one party hereto at any time of any breach by a party hereto or compliance with
any condition or provision of this Agreement to be performed by such party will
be deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.

 

27.           TITLES
AND HEADINGS. Titles and headings to paragraphs herein are for purposes of
reference only and in no way shall limit, define or otherwise affect the
provisions hereof.

 

28.           COUNTERPARTS.
This Agreement may be executed in one or more counterparts, each of which shall
be deemed to be an original, but all of which together will constitute one and
the same Agreement.

 

REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK

 

SIGNATURE PAGE FOLLOWS

 

25

 

IN WITNESS WHEREOF, the parties have duly executed
this Agreement as of the day and year written above.

 

 

	
   

  	
   

  
	
   

  	
  Paul S. Fisher

  
	
   

  	
   

  
	
   

  	
  Solstice Holdings LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  And At and After the Effective Date:

  
	
   

  	
   

  
	
   

  	
  CenterPoint Properties Trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  

 

 

(Signature Page - Paul S.
Fisher Employment Agreement)

 

 

SCHEDULE A

 

	
  NAME:

  	
   

  	
  Paul S. Fisher

  
	
   

  	
   

  	
   

  
	
  ADDRESS:

  	
   

  	
  322 North Kenilworth Avenue

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Oak Park, IL 60302

  
	
   

  	
   

  	
   

  
	
  TITLE:

  	
   

  	
  President & Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
  REPORTING RELATIONSHIP:

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  BASE SALARY:

  	
   

  	
  $350,000

  
	
   

  	
   

  	
   

  
	
  TARGET ANNUAL BONUS AWARD:

  	
   

  	
  $507,500

  
	
   

  	
   

  	
   

  
	
  TOTAL INITIAL INCENTIVE AWARD:

  	
   

  	
  $1,766,000

  
	
   

  	
   

  	
   

  
	
  SPECIFIC BENEFITS:

  	
   

  	
  University Club

  

 

INITIAL INVESTMENT

 

	
  CASH INVESTMENT:

  	
   

  	
  $

  	
  5,234,000

  
	
   

  	
   

  	
   

  
	
  INITIAL
  INCENTIVE AWARD INVESTMENT:

  	
   

  	
  $

  	
  1,766,000

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"}]]