Document:

exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT, made and entered into effective as of May 11, 2008 (the “Effective
Date”) by and between Diane Sheryl Detering-Paddison (the “Executive”) and ProLogis, a Maryland
real estate investment trust (the “Company”),

WITNESSETH THAT:

WHEREAS, the Company desires to employ the Executive in an executive capacity and the
Executive desires to be so employed by the Company, all on the terms and conditions set forth
herein;

1.     Term. Subject to the terms and conditions of this Agreement, the Company hereby
agrees to employ the Executive as its Executive Director - Global Operations for the portion of the
Agreement Term (as defined below) beginning on June 3, 2008 (the “Employment Commencement Date”)
and ending on December 31, 2008 (the “Initial Period”) and as its President and Chief Operating
Officer for the remainder of the Agreement Term (beginning on January 1, 2009), and the Executive
hereby agrees to be employed by the Company and to provide services during the Agreement Term in
accordance with this Agreement. The “Agreement Term” shall be the period beginning on Employment
Commencement Date and ending on December 31, 2012. Thereafter, the Agreement Term shall be
automatically extended for 12-month periods, unless one party to this Agreement provides notice of
non-renewal to the other at least 90 days before the last day of the then current Agreement Term.
If a Change in Control (as defined in the Company’s 2006 Long-Term Incentive Plan (the “LTIP”) as
of the Effective Date, which definition is set forth in Exhibit A hereto and forms a part of this
Agreement) occurs during the Agreement Term, the Agreement Term shall end on the later of the date
which is 24 months following the effective date of the Change in Control or the date on which the
Agreement Term would otherwise end.

2.     Performance of Services. The Executive’s employment with the Company shall be
subject to the following:

	(a)	 	During the Agreement Term, while the Executive is employed by the Company, the Executive
shall devote her full time, energies and talents to serving as the Executive Director, Global
Operations of the Company (for the Initial Period) and as the President and Chief Operating
Officer of the Company (for the portion of the Agreement Term after the Initial Period).
	 
	(b)	 	The Executive shall be required to travel as necessary to properly perform her duties under
this Agreement. Without limiting the generality of the foregoing, for the period beginning on
the Employment Commencement Date and ending on September 30, 2009 (the “Relocation Transition
Period”), the Executive shall perform her primary duties (i) from the Company’s Dallas, Texas
office and (ii) from the Company’s Denver, Colorado office for two days a week (in weeks that
she does not perform her duties outside of the United States or in weeks that she is not
otherwise traveling overnight in connection with her duties). At the end of the Relocation
Transition Period (or such date after the end of the Relocation Transition Period as the Company may agree), the Executive’s principal 

 

 

	 	 	office
location shall be moved from the Company’s Dallas, Texas office to the Company’s Denver,
Colorado office; provided, however, that at the end of the Relocation Transition Period, the
parties may mutually agree to a relocation from the Company’s Dallas, Texas office to a
Company office other than Denver, Colorado.
	 
	(c)	 	The Executive shall report to the Chief Executive Officer of the Company. The Executive
agrees that she shall perform her duties faithfully and efficiently subject to the directions
of the Chief Executive Officer of the Company. The Executive’s duties may include providing
services for both the Company and the Subsidiaries (as defined below), as determined by the
Chief Executive Officer of the Company; provided, however, that the Executive shall not,
without her consent, be assigned tasks that would be inconsistent with those of Executive
Director, Global Operations of the Company (for the Initial Period) or President and Chief
Operating Officer of the Company (for the portion of the Agreement Term after the Initial
Period). The Executive shall have such authority, power, responsibilities and duties as are
inherent in her positions (and the undertakings applicable to her positions) and necessary to
carry out her responsibilities and the duties required of her hereunder. Subject to the
foregoing provisions of this subparagraph (c), it is anticipated that, as of the Employment
Commencement Date, the Executive will have responsibility for overseeing global human
resources, regional property management, sustainability, and research and marketing and that
the global heads or country heads of such units or functions, as applicable, will have a
direct reporting relationship with the Executive or a dual reporting relationship with the
Company’s Chief Executive Officer.
	 
	(d)	 	Notwithstanding the foregoing provisions of this paragraph 2, during the Agreement Term, the
Executive may devote reasonable time to activities involving professional, charitable,
community, educational, religious and similar types of organizations to the extent that such
other activities do not, in the judgment of the Board of Trustees of the Company (the
“Board”), inhibit or prohibit the performance of the Executive’s duties under this Agreement
or conflict in any material way with the business of the Company or any Subsidiary; provided,
however, that the Executive shall not serve on the board of any business, or hold any other
position with any business, without the consent of the Board.
	 
	(e)	 	For purposes of this Agreement, the term “Subsidiary” shall mean any corporation,
partnership, joint venture or other entity during any period in which at least a fifty percent
interest in such entity is owned, directly or indirectly, by the Company (or a successor to
the Company).

3.     Compensation. Subject to the terms of this Agreement, during the Agreement Term,
while the Executive is employed by the Company, the Company shall compensate her for her services
as follows:

	(a)	 	The Executive shall receive, for each 12-consecutive month period beginning on the Employment
Commencement Date and ending on each anniversary thereof, in substantially equal monthly or
more frequent installments, an annual base salary of not less than $500,000 (the “Salary”).

2

 

	(b)	 	The Executive’s annual target bonus for any year (the “Target Bonus”) shall be not less than
$500,000; provided, however, that the actual bonus for 2008 shall be not less than $500,000
(without regard to satisfaction of any goals and objectives) and for any year thereafter the
actual amount of the Target Bonus payable to the Executive for any year shall be determined
based upon the satisfaction of goals and objectives established by the Chief Executive Officer
or a duly authorized committee of the Board for such year and communicated to the Executive at
a time and in a manner consistent with communications to other senior executives of the
Company and shall be subject to such other terms and conditions of the Company’s bonus plan as
in effect from time to time. The amount of the Target Bonus may be modified by the Company
for calendar years after 2012.
	 
	(c)	 	The Management Development and Compensation Committee of the Board (the “Committee”) shall
grant to the Executive, effective as of the Employment Commencement Date and conditioned upon
the Executive’s employment by the Company on the Employment Commencement Date, 70,000
restricted stock units (“RSUs”) under the LTIP. The RSUs shall vest as follows, assuming, in
each case, that the Executive’s Date of Termination (as defined below) has not occurred as of
the applicable vesting date: 35,000 of the RSUs shall vest in 20 percent increments on
December 31 of each of 2008, 2009, 2010, 2011 and 2012 and 35,000 of the RSUs shall vest on
December 31, 2012. The RSUs shall be subject to such other terms and conditions as determined
by the Committee in accordance with the LTIP.
	 
	(d)	 	For each 12-consecutive-month period during the Agreement Term beginning for 2009, the
Executive shall be entitled to grants of Long-Term Compensation having an annual aggregate
value of $1.0 million. For purposes of this Agreement, “Long-Term Compensation” means,
collectively, contingent performance shares, stock options and share units. The dates on
which such grants shall occur, the types of grants, and the terms and conditions applicable to
such awards shall be determined by the Committee in its discretion under the LTIP (or a
successor plan thereto), provided that the intent is that the awards made pursuant to this
subparagraph 3(d) shall be made at the same time as annual Long-Term Compensation awards are
made to other senior executives of the Company and that the first such grant shall be made in
December, 2008. The provisions of this subparagraph 3(d) shall not apply to periods after
December, 2012.
	 
	(e)	 	Except as otherwise specifically provided to the contrary in this Agreement, the Executive
shall be eligible to participate in the Company’s employee benefit plans, programs, policies
and arrangements to the same extent and on the same terms as those benefits are provided by
the Company from time to time to the Company’s other similarly situated senior management
employees. However, the Company shall not be required to provide a benefit under this
subparagraph 3(e) if such benefit would duplicate (or otherwise be of the same type as) a
benefit specifically required to be provided under another provision of this Agreement. The
Executive shall complete all forms and physical examinations, and otherwise take all other
similar actions to secure coverage and benefits described in this subparagraph 3(e), to the
extent determined to be necessary or appropriate by the Company.

3

 

	(f)	 	The Executive is authorized to incur reasonable expenses for entertainment, traveling, meals,
lodging and similar items in promoting the Company’s business. The Company shall reimburse
the Executive for all reasonable expenses so incurred in accordance with the normal practices
of the Company during her employment with the Company; provided, however, that, the
reimbursement of any such expenses that are taxable to the Executive shall be made on or
before the last day of the year following the year in which the expense was incurred, the
amount of the expenses eligible for reimbursement during one year shall not affect the amount
of expenses eligible for reimbursement in any other year, and the right to reimbursement shall
not be subject to liquidation or exchange for another benefit.
	 
	(g)	 	In connection with the relocation of the Executive’s principal work location from Dallas,
Texas to Denver, Colorado in accordance with subparagraph 2(b), the Executive shall be
entitled to relocation assistance in moving her principal residence in accordance with the
Company’s standard executive relocation policy.
	 
	(h)	 	During the Relocation Transition Period, the Company shall provide the Executive with a video
conference capability in her Dallas, Texas home for use in connection with her duties under
this Agreement. The Executive shall be provided with a full-time executive assistant in the
Company’s Denver, Colorado office (which executive assistant’s time shall be shared in
accordance with the Company’s standard policies), shall have full-time analyst support in the
Company’s Denver, Colorado office and, during the Relocation Transition Period, the Executive
shall be provided with an executive assistant in the Company’s Dallas, Texas office who shall
be required to devote 25 percent of his or her time to tasks for the Executive.
	 
	(i)	 	Notwithstanding the foregoing provisions of subparagraphs 3(c) and 3(d), upon (i) a Change in
Control (as defined in the LTIP or applicable successor plan), or (ii) upon the Executive’s
Date of Termination if such Date of Termination occurs as a result of termination by the
Company (or a successor) for reasons other than Cause or the Executive terminates her
employment for Good Reason, all of the outstanding RSUs granted to the Executive pursuant to
subparagraph 3(c) that are then outstanding shall become immediately fully vested.

4.     Termination. The Executive’s employment with the Company during the Agreement Term
may be terminated by the Company or the Executive without any breach of this Agreement only under
the circumstances described in subparagraphs 4(a) through 4(f):

	(a)	 	Death. The Executive’s employment hereunder shall terminate upon her death.
	 
	(b)	 	Permanent Disability. The Company may terminate the Executive’s employment during
any period in which she is Permanently Disabled. The Executive shall be considered
“Permanently Disabled” during any period in which she is unable, by reason of a medically
determinable physical or mental impairment, to engage in the material and substantial duties
of her regular occupation, and such condition is expected to be permanent, as determined by
the Board.

4

 

	(c)	 	Cause. The Company may terminate the Executive’s employment hereunder at any time
for Cause. The termination of the Executive’s employment shall not be considered to be for
Cause unless the Company provides written notice to the Executive within 90 days after the
Company first has knowledge of the circumstances constituting Cause, which notice specifically
identifies the applicable circumstances constituting Cause, and the Executive does not cure
the circumstances, if possible of a cure, within 30 days following such notice; provided,
however, that if the Company reasonably determines that the Executive cannot cure the
circumstances and so notifies the Executive, no cure period will apply. For purposes of this
Agreement, the term “Cause” shall mean in the reasonable judgment of the Board (i) the willful
and continued failure by the Executive to substantially perform her duties with the Company or
any Subsidiary, (ii) the willful engaging by the Executive in conduct which is demonstrably
injurious to the Company or any Subsidiary, monetarily or otherwise, or (iii) the engaging by
the Executive in egregious misconduct involving serious moral turpitude. For purposes hereof,
no act, or failure to act, on the Executive’s part shall be deemed “willful” unless done, or
omitted to be done, by the Executive not in good faith and without reasonable belief that such
action was in the best interest of the Company or Subsidiary.
	 
	(d)	 	Constructive Discharge. If (I) the Executive provides written notice to the Company
of the occurrence of Good Reason (as defined below) within 90 days after the Executive first
has knowledge of the circumstances constituting Good Reason, which notice specifically
identifies the circumstances which the Executive believes constitute Good Reason; (II) the
Company fails to notify the Executive of the Company’s intended method of correction within 30
days after the Company receives the notice and fails to correct such circumstances within 60
days after the Company receives the notice, or the Company fails to correct the circumstances
within 30 days after the Executive’s notice; and (III) the Executive resigns within 90 days
after the latest of (A) the date of the Company’s response to the Executive’s notice, if such
notice does not indicate an intention to correct such circumstances, (B) the last day of the
correction period if the circumstances have not been corrected by such date, or (C) the date
of the Executive’s notice to the Company if the Company does not respond to the Executive’s
notice to the Company within 30 days, then the Executive shall be considered to have been
subject to a Constructive Discharge by the Company. For purposes of this Agreement, “Good
Reason” shall mean, without the Executive’s express written consent (and except in consequence
of a prior termination of the Executive’s employment), the occurrence of any of the following
circumstances:

	 	(i)	 	The material diminution in the Executive’s authority, duties or
responsibilities.
	 
	 	(ii)	 	A material reduction by the Company in the Executive’s Salary to an amount that
is less than required under subparagraph 3(a).
	 
	 	(iii)	 	The material failure by the Board or Committee to approve payment of the
Executive’s Target Bonus for any year.
	 
	 	(iv)	 	The material adverse modification of the Executive’s principal office location
and travel obligations as set forth in subparagraph 2(b); provided, however, that a

5

 

	 	 	 	change to the principal office location after the Relocation Transition Period in
accordance with subparagraph 2(b) shall not be considered to be a material adverse
changes of such office location and/or travel obligations for purposes of this
clause (iv).
	 
	 	(v)	 	The failure of the Company to obtain a satisfactory agreement from any
successor to assume and agree to perform this Agreement as contemplated in paragraph
21.
	 
	 	The Executive’s right to terminate her employment pursuant to this subparagraph 4(d) shall
not be affected by her incapacity due to physical or mental illness.

	(e)	 	Termination by Executive. The Executive may terminate her employment hereunder at
any time for any reason by giving the Company prior written Notice of Termination (as defined
in subparagraph 4(g)), which Notice of Termination shall be effective not less than 30 days
after it is given to the Company. The Executive shall not be required to specify a reason for
termination pursuant to this subparagraph 4(e); provided, however, that if no reason is
specified in the Notice of Termination, such termination shall be considered be pursuant to
this paragraph 4(e) and not pursuant to any other provision of this Agreement. For the
avoidance of doubt, to the extent that the procedures specified in subparagraph 4(d) are
required to effect a termination by the Executive for Constructive Discharge, the procedures
of this subparagraph 4(e) may not be used in lieu of the procedures required under
subparagraph 4(d).
	 
	(f)	 	Termination by Company. The Company may terminate the Executive’s employment
hereunder at any time for any reason, by giving the Executive prior written Notice of
Termination, which Notice of Termination shall be effective immediately, or such later time as
is specified in such notice. The Company shall not be required to specify a reason for
termination pursuant to this subparagraph 4(f); provided, however, that if no reason is
specified in the Notice of Termination, such termination shall be considered to be pursuant to
this paragraph 4(f) and not pursuant to any other provision of this Agreement. For the
avoidance of doubt, to the extent that the procedures specified in subparagraph 4(c) are
required to effect a termination by the Company for Cause, the procedures of this subparagraph
4(f) may not be used in lieu of the procedures required under subparagraph 4(c).
	 
	(g)	 	Notice of Termination. Any termination of the Executive’s employment by the Company
or the Executive (other than a termination pursuant to subparagraph 4(a)) must be communicated
by a written Notice of Termination to the other party hereto. For purposes of this Agreement,
a “Notice of Termination” means a dated notice which indicates the Date of Termination (not
earlier than the date on which the notice is provided or such other date permitted under this
Agreement), and which indicates the specific termination provision in this Agreement relied on
(including, to the extent applicable, the provisions of subparagraph 4(e) or 4(f)) and, to the
extent applicable, sets forth in reasonable detail the facts and circumstances, if any,
claimed to provide a basis for termination of the Executive’s employment under the provision
so indicated.

6

 

	(h)	 	Date of Termination. “Date of Termination” means the last day the Executive is
employed by the Company and the Subsidiaries, provided that the Executive’s employment is
terminated in accordance with the foregoing provisions of this paragraph 4.
	 
	(i)	 	Effect of Termination. If, on the Date of Termination, the Executive is a member of
the Board or the board of trustees or board of directors any of the Subsidiaries, or holds any
other position with the Company and the Subsidiaries (other than the position described in
subparagraph 2(a)), the Executive shall resign from all such positions as of the Date of
Termination.
	 
	(j)	 	Special Rules in the Event of a Change in Control. In the event of a Change in
Control, if the Executive becomes employed by the entity into which the Company is merged, or
the purchaser of substantially all of the assets of the Company, or a successor to such entity
or purchaser, the Executive shall not be treated as having a Date of Termination for purposes
of this Agreement until such time as the Executive terminates employment with the merged
entity or purchaser (or successor), as applicable.

5.     Rights Upon Termination. The Executive’s right to payment and benefits under this
Agreement for periods after her Date of Termination shall be determined in accordance with the
following provisions of this paragraph 5:

	(a)	 	If the Executive’s Date of Termination occurs during the Agreement Term for any reason, the
Company shall pay to the Executive:

	 	(i)	 	The Executive’s Salary (to the extent not previously paid) for the period
ending on the Date of Termination.
	 
	 	(ii)	 	Payment for unused vacation days, as determined in accordance with Company
policy as in effect from time to time.
	 
	 	(iii)	 	If the Date of Termination occurs after the end of a performance period and
prior to the payment of the Target Bonus for the period, the Executive shall be paid
such bonus at the regularly scheduled time.
	 
	 	(iv)	 	Any other payments or benefits to be provided to the Executive by the Company
pursuant to any employee benefit plans or arrangements adopted by the Company, to the
extent such amounts are due from the Company.
	 
	 	Except as may otherwise be expressly provided to the contrary in this Agreement, nothing in
this Agreement shall be construed as requiring the Executive to be treated as employed by
the Company for purposes of any employee benefit plan or arrangement following the date of
the Executive’s Date of Termination. Payments to be made pursuant to clauses (i) and (ii)
shall be paid to the Executive within 30 days following the Date of Termination.

	(b)	 	If the Executive’s Date of Termination occurs during the Agreement Term under circumstances
described in subparagraph 4(a) (relating to the Executive’s death),

7

 

	 	 	subparagraph 4(b) (relating to the Executive’s being Permanently Disabled), subparagraph
4(c) (relating to the Executive’s termination for Cause), subparagraph 4(e) (relating to the
Executive’s resignation), or if the Executive’s employment with the Company terminates at or
after the end of the Agreement Term then, except as otherwise expressly provided in this
Agreement or otherwise agreed in writing between the Executive and the Company, the Company
shall have no obligation to make payments under the Agreement for periods after the
Executive’s Date of Termination.
	 
	(c)	 	Subject to the provisions of subparagraph 5(d), if the Executive’s Date of Termination occurs
during the Agreement Term under circumstances described in subparagraph 4(d) (relating to
Constructive Discharge) or subparagraph 4(f) (relating to termination by the Company without
Cause), then, in addition to the amounts payable in accordance with subparagraph 5(a), the
Company shall pay or provide to the Executive the following payments and benefits
(collectively, the “Severance Benefits”):

	 	(i)	 	The Executive shall receive from the Company a “Severance Payment” equal to the
sum of (A) the Salary amount described in subparagraph 3(a), as in effect on her Date
of Termination, and (B) her Target Bonus (which, for purposes of calculating the
Severance Payment, shall be equal to $500,000). The Severance Payment shall be payable
in substantially equal installments in accordance with the Company’s normal payroll
practices over the 12 month period commencing on the Date of Termination (the
“Severance Period”). The Severance Period and the Company’s obligation to make any
further Severance Payments under this clause (i) shall cease with respect to periods
after the earlier to occur of the date of the Executive’s death, or a date, if any, of
the breach by the Executive of the provisions of paragraphs 8 or 9 of this Agreement.
	 
	 	(ii)	 	Continuation of coverage for the Severance Period under the health and dental
benefit plans and arrangements of the Company in which the Executive was participating
at the time of her termination of employment at the same cost that applies to similarly
situated active employees of the Company.

	(d)	 	If the Executive’s Date of Termination occurs during the Agreement Term under circumstances
described in subparagraph 4(d) (relating to Constructive Discharge) or subparagraph 4(f)
(relating to termination by the Company without Cause) and within 24 months following a Change
in Control, then, in addition to the amounts payable in accordance with subparagraph 5(a) and
in lieu of the benefits provided under subparagraph 5(c), the Company shall pay or provide to
the Executive the following payments and benefits:

	 	(i)	 	The Executive shall be entitled to a Target Bonus payable for the performance
period(s) in which the date of the Executive’s Date of Termination occurs, with payment
based on achievement of a target level of performance for the entire period (regardless
of actual performance for the period); provided, however, that the amount of the Target
Bonus shall be subject to a pro-rata reduction to reflect the portion of the applicable
performance period following the date of termination. Payment under this clause (i)
shall be made at the regularly

8

 

	 	 	 	scheduled time for payment of such amounts to similarly-situated active employees.
	 
	 	(ii)	 	As of the Date of Termination, the Executive shall be fully vested in all
benefits accrued through the Date of Termination under the ProLogis Nonqualified
Savings Plan (the “NSP”). Payment of benefits under the NSP shall be paid in
accordance with the terms of the NSP.
	 
	 	(iii)	 	All awards made to the Executive under the LTIP (or any successor plan) which
are outstanding as of the Date of Termination shall be fully vested and immediately
exercisable.
	 
	 	(iv)	 	Continuation of coverage for 36 months following the Date of Termination under
the health, dental and life insurance benefit plans and arrangements of the Company in
which the Executive was participating at the time of her termination of employment at
the same cost that applies to similarly situated active employees of the Company;
provided, however, that, if any of the benefits are taxable to the Executive, the
applicable taxable amount shall be included in the Executive’s income in the year in
which the taxable benefit is provided.
	 
	 	(v)	 	The Executive shall receive from the Company a “Change in Control Severance
Payment” equal to the sum of (A) two times the Salary amount described in subparagraph
3(a), as in effect on her Date of Termination, and (B) two times her Target Bonus for
the fiscal year in which the Date of Termination occurs (but in no event shall the
aggregate amount calculated under this subclause (B) be less than $500,000). The
Change in Control Severance Payment shall be payable in substantially equal
installments in accordance with the Company’s normal payroll practices over the 24
month period commencing on the Date of Termination (the “Change in Control Severance
Period”); provided, however, that if the Change in Control constitutes a change in the
ownership or effective control of the Company or a sale of a substantial portion of the
assets of the Company, in accordance with the requirements of Section 409A(a)(2)(A)(v)
of the Internal Revenue Code of 1986, as amended (the “Code”) and Treasury Regulation
Section 1.409A-3(i)(5) (or any successor provision) thereunder, then the Change in
Control Severance Payment shall be paid in a lump sum within 14 days following the Date
of Termination. The Change in Control Severance Period and the Company’s obligation to
make any further Change in Control Severance Payments under this clause (v) shall cease
with respect to periods after the earlier to occur of the date of the Executive’s
death, or a date, if any, of the breach by the Executive of the provisions of
paragraphs 8 or 9 of this Agreement.
	 
	 	(vi)	 	The Company shall, for a period not to exceed twelve months following the Date
of Termination, provide for standard outplacement services by any one qualified
outplacement agency selected by the Company.

	(e)	 	Notwithstanding any other provisions of this Agreement, no Severance Benefits shall be paid
or provided under this Agreement unless and until (i) the Executive executes a

9

 

	 	 	release of claims against the Company in a form prepared by the Company and agreed to by the
Executive in her reasonable discretion (the “Release”), which Release shall be executed no
later than 30 days after the Date of Termination, and (ii) as of the seventh day following
the Executive’s execution of the Release, the Release is not revoked. If the requirements
set forth in clauses (i) (the “consideration requirements”) and (ii) (the “revocation
requirements”) are not satisfied, the Executive shall have no rights to or with respect to
any Severance Benefits under this Agreement. Any Severance Benefits that are not paid or
provided pending satisfaction of the consideration requirements and/or revocation
requirements but that would otherwise have been paid or provided pursuant to this Agreement
had those requirements been satisfied on the Date of Termination shall be paid or provided
on the tenth day following the last day of the revocation period.
	 
	(f)	 	The Executive’s rights under this paragraph 5 shall be in lieu of any benefits that may be
otherwise payable to or on behalf of the Executive pursuant to the terms of any severance pay
arrangement of the Company or any Subsidiary or any other, similar arrangement of the Company
or any Subsidiary providing benefits upon involuntary termination of employment.

6.     Duties on Termination. Subject to the terms and conditions of this Agreement,
during the period beginning on the date of delivery of a Notice of Termination, and ending on the
Date of Termination, the Executive shall continue to perform her duties as set forth in this
Agreement, and shall also perform such services for the Company as are necessary and appropriate
for a smooth transition to the Executive’s successor, if any.

7.     Mitigation and Set-Off. The Executive shall not be required to mitigate the amount
of any payment provided for in this Agreement by seeking other employment or otherwise. The
Company shall not be entitled to set off against the amounts payable to the Executive under this
Agreement any amounts owed to the Company by the Executive, any amounts earned by the Executive in
other employment after termination of her employment with the Company, or any amounts which might
have been earned by the Executive in other employment had she sought such other employment.

8.     Confidential Information. The Executive agrees that, during the Agreement Term,
and at all times thereafter:

	(a)	 	Except as may be required by the lawful order of a court or agency of competent jurisdiction,
except as necessary to carry out her duties to the Company and its Subsidiaries, or except to
the extent that the Executive has express authorization from the Company, the Executive agrees
to keep secret and confidential indefinitely, all Confidential Information, and not to
disclose the same, either directly or indirectly, to any other person, firm, or business
entity, or to use it in any way.
	 
	(b)	 	To the extent that any court or agency seeks to have the Executive disclose Confidential
Information, she shall promptly inform the Company, and she shall take such reasonable steps
to prevent disclosure of Confidential Information until the Company has been informed of such
requested disclosure, and the Company has an opportunity to respond to such court or agency.
To the extent that the Executive obtains information on behalf of

10

 

	 	 	the Company or any of the Subsidiaries that may be subject to attorney-client privilege as
to the Company’s attorneys, the Executive shall take reasonable steps to maintain the
confidentiality of such information and to preserve such privilege.
	 
	(c)	 	Nothing in the foregoing provisions of this paragraph 8 shall be construed so as to prevent
the Executive from using, in connection with her employment for herself or an employer other
than the Company or any of the Subsidiaries, knowledge which was acquired by her during the
course of her employment with the Company and the Subsidiaries, and which is generally known
to persons of her experience in other companies in the same industry.
	 
	(d)	 	For purposes of this Agreement, the term “Confidential Information” shall include all
non-public information (including, without limitation, information regarding litigation and
pending litigation) concerning the Company and the Subsidiaries which was acquired by or
disclosed to the Executive during the course of her employment with the Company, or during the
course of her consultation with the Company following her Date of Termination (regardless of
whether consultation is pursuant to paragraph 10).
	 
	(e)	 	This paragraph 8 shall not be construed to unreasonably restrict the Executive’s ability to
disclose confidential information in an arbitration proceeding or a court proceeding in
connection with the assertion of, or defense against any claim of breach of this Agreement in
accordance with paragraph 24. If there is a dispute between the Company and the Executive as
to whether information may be disclosed in accordance with this subparagraph 8(e) the matter
shall be submitted to the finder of fact or the court (whichever is applicable) for decision.

9.     Noncompetition. During the Restricted Period (as defined below) the Executive
shall not, without the Company’s prior written consent (which consent shall not be unreasonably
withheld), directly or indirectly, for the Executive’s own account or for or on behalf of any other
person or entity, whether an officer, director, employee, partner, consultant, or otherwise:

	 	(a)	 	engage or participate in, directly or indirectly, alone or as principal, agent,
employee, employer, consultant, investor or partner of, or assist in the management of,
or provide advisory or other services to, or own any stock or any other ownership
interest in, or make any financial investment in, any business or entity which is
Competitive with the Company (as defined below) or purchase any industrial or retail
commercial property (or property that could reasonably be expected to be used as
industrial or retail commercial property);
	 
	 	(b)	 	solicit or induce, or attempt to solicit or induce, any of the Company’s or the
Subsidiaries’ clients or customers for any purpose in connection with any activity that
is Competitive with the Company; or
	 
	 	(c)	 	(i) solicit or attempt to hire or employ, in any fashion (whether as an
employee, independent contractor or otherwise), any employee or independent contractor
of the Company or the Subsidiaries, or (ii) solicit or induce, or attempt to solicit or
induce, any of the Company’s or the Subsidiaries’ employees, consultants, clients,

11

 

	 	 	customers, vendors, suppliers or independent contractors to terminate, reduce or
diminish their relationship with the Company and/or the Subsidiaries.

	 	 	For purposes of this Agreement:

	 	(i)	 	The term “Restricted Period” means, the period during which the Executive is
employed by the Company and the period following the Date of Termination and ending, on
the second anniversary of the Date of Termination.
	 
	 	(ii)	 	A business or entity shall be considered “Competitive with the Company” if the
business or entity engages in any of the businesses in which the Company or any of its
affiliates engages, including the business of providing distribution facilities or
services, the acquisitions of properties for such purpose and the design of business
strategies for such purpose. For purposes of the portion of the Restricted Period
following the Executive’s Date of Termination, whether a business or entity is
“Competitive with the Company” shall be determined as of the Executive’s Date of
Termination. For the avoidance of doubt, as of the Effective Date, the Company’s
business consists primarily of the direct long-term ownership of industrial
distribution properties, the global investment management (i.e., property funds)
business, and the development of industrial distribution property, all with the goal of
achieving long term sustainable growth in cash flow and a high level of return for its
shareholders.
	 
	 	(iii)	 	For periods after the Executive’s Date of Termination, a business or entity
shall not be considered “Competitive with the Company” (as defined in clause (ii)
above) for purposes of this Agreement if it builds anything other than industrial
warehouses or acquires property for purposes of developing anything other than
industrial warehouses. and the Executive’s investment in such business or entity does
not exceed $10,000,000 with respect to any one transaction or $20,000,000 in the
aggregate for all transactions for the portion of the Restricted Period following her
Date of Termination.

10.     Assistance with Claims. The Executive agrees that, for the period beginning on
the Employment Commencement Date, and continuing for a reasonable period after the Executive’s Date
of Termination, the Executive shall assist the Company and the Subsidiaries in defense of any
claims that may be made against the Company and the Subsidiaries, and shall assist the Company and
the Subsidiaries in the prosecution of any claims that may be made by the Company or the
Subsidiaries, to the extent that such claims may relate to services performed by the Executive for
the Company and the Subsidiaries (“Proceedings”). The Executive agrees to promptly inform the
Company if she becomes aware of any lawsuits involving such claims that may be filed against the
Company or any Subsidiary. The Company agrees to provide legal counsel to the Executive in
connection with such assistance (to the extent legally permitted), and to reimburse the Executive
for all of the Executive’s reasonable out-of-pocket expenses associated with such assistance,
including travel expenses and reasonable legal expenses; provided, however, that such expenses
shall be reimbursed no later than March 15 of the year following the year in which they are
incurred. If the amount of time spent by the Executive fulfilling her obligations under this
section exceeds 20 hours, the Company shall pay the

12

 

Executive an hourly rate for her time in fulfilling her obligations, which hourly rate shall
be determined by dividing the Executive’s annual Salary when last employed by the Company by 1920,
which payments shall be made in accordance with the normal payroll practices of the Company. The
Executive shall choose her legal counsel in her reasonable sole discretion. For periods after the
Executive’s employment with the Company terminates, the Company agrees to provide reasonable
compensation to the Executive for such assistance, which compensation shall be paid within 30 days
after the assistance is performed. The Executive also agrees to promptly inform the Company if she
is asked to assist in any investigation of the Company or the Subsidiaries (or their actions) that
may relate to services performed by the Executive for the Company or the Subsidiaries, regardless
of whether a lawsuit has then been filed against the Company or the Subsidiaries with respect to
such investigation. The Executive agrees that the Executive shall testify truthfully in connection
with any such Proceeding, shall cooperate with the Company in connection with every such
Proceeding, and that the Executive’s duty of cooperation shall include an obligation to meet with
the Company representatives and/or counsel concerning all such Proceedings for such purposes, and
at such mutually agreeable times and places, as the Company reasonably requests and which do not
unduly interfere with the Executive’s other personal and business commitments, and to appear for
deposition and/or testimony upon the Company’s request and without a subpoena.

11.     Directors and Officers Insurance. The Executive shall be named as an insured and
covered against the same claims and at the same level of insurance under the Directors and Officers
insurance purchased by the Company for other senior executives of the Company.

12.     Equitable Remedies. The Executive acknowledges that the Company would be
irreparably injured by a violation of paragraphs 8 or 9 and she agrees that the Company, in
addition to any other remedies available to it for such breach or threatened breach, shall be
entitled to a preliminary injunction, temporary restraining order, or other equivalent relief,
restraining the Executive from any actual or threatened breach of either paragraphs 8 or 9. If a
bond is required to be posted in order for the Company to secure an injunction or other equitable
remedy, the parties agree that said bond need not be more than a nominal sum.

13.     Nonalienation. The interests of the Executive under this Agreement are not
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors of the Executive or the Executive’s beneficiary.

14.     Withholding. All payments and benefits under this Agreement are subject to
withholding of all applicable taxes.

15.     Indemnity. The Company shall indemnify the Executive against and shall pay and
advance (to the extent permitted by applicable law) all expenses, including, without limitation,
attorneys’ fees, disbursements and retainers, accounting and witness fees, travel and deposition
costs, expenses of investigations, judicial or administrative proceedings and appeals, amounts paid
in settlement by the Executive or on behalf of the Executive, actually incurred by the Executive in
connection with any threatened, pending or completed claim, action, suit or proceeding, formal or
informal, whether brought in the right of the Company or otherwise and whether of a civil,
criminal, administrative or investigative nature, by reason of the fact that the

13

 

Executive is a director, officer, employee or agent of the Company or its affiliates or is
serving at the Company’s request as a director, officer, employee, or agent of another corporation,
limited liability company, partnership, joint venture, trust, or other enterprise.

16.     Make-Whole Payments. The following shall apply with respect to amounts payable to
or on behalf of the Executive relating to a Change in Control:

	(a)	 	Subject to the following provisions of this paragraph 16, if any payment or benefit to which
the Executive is entitled from the Company, any affiliate, or trusts established by the
Company or by any affiliate (a “Payment”) is subject to any tax under section 4999 of the Code
or any similar Federal or state law (an “Excise Tax”), the Company shall pay to the Executive
an additional amount (the “Make-Whole-Amount”) which is equal to (i) the amount of the Excise
Tax, plus (ii) the aggregate amount of any interest, penalties, fines or additions to any tax
which are imposed in connection with the imposition of such Excise Tax, plus (iii) all income,
excise and other applicable taxes imposed on the Executive under the laws of any Federal,
state or local government or taxing authority by reason of the payments required under clause
(i) and clause (ii) and this clause (iii).
	 
	(b)	 	For purposes of determining the Make-Whole Amount, the Executive shall be deemed to be taxed
at the highest marginal rate under all applicable local, state, federal and foreign income tax
laws for the year in which the Make-Whole Amount is paid. The Make-Whole Amount payable with
respect to an Excise Tax shall be paid by the Company within 90 days following the Payment
with respect to which such Excise Tax relates.
	 
	(c)	 	All calculations under this paragraph 16 shall be made initially by the Company and the
Company shall provide prompt written notice thereof to the Executive to enable the Executive
to timely file all applicable tax returns. Upon request of the Executive, the Company shall
provide the Executive with sufficient tax and compensation data to enable the Executive or her
tax advisor to independently make the calculations described in paragraph (b) above and the
Company shall reimburse the Executive for reasonable fees and expenses incurred for any such
verification.
	 
	(d)	 	If the Executive gives written notice to the Company of any objection to the results of the
Company’s calculations within 60 days of the Executive’s receipt of written notice thereof,
the dispute shall be referred for determination to tax counsel selected by the independent
auditors of the Company (“Tax Counsel”). The Company shall pay all fees and expenses of such
Tax Counsel. Pending such determination by Tax Counsel, the Company shall pay the Executive
the Make-Whole Amount as determined by it in good faith. The Company shall pay the Executive
any additional amount determined by Tax Counsel to be due under this paragraph 16 (together
with interest thereon at a rate equal to the short-term applicable Federal rate determined
under section 1274(d) of the Code) promptly after such determination but in no event later
than the end of the calendar year in which the applicable tax is remitted to the Tax
Authority, as defined in subparagraph 16(e) hereof.
	 
	(e)	 	The determination by Tax Counsel shall be conclusive and binding upon all parties unless the
Internal Revenue Service, a court of competent jurisdiction, or such other duly

14

 

	 	 	empowered governmental body or agency (a “Tax Authority”) determines that the Executive owes
a greater or lesser amount of Excise Tax with respect to any Payment than the amount
determined by Tax Counsel.
	 
	(f)	 	If a Taxing Authority makes a claim against the Executive which, if successful, would require
the Company to make a payment under this paragraph 16, the Executive agrees to contest the
claim on request of the Company subject to the following conditions:

	 	(i)	 	The Executive shall notify the Company of any such claim within 10 days of
becoming aware thereof. In the event that the Company desires the claim to be
contested, it shall promptly (but in no event more than 30 days after the notice from
the Executive or such shorter time as the Taxing Authority may specify for responding
to such claim) request the Executive to contest the claim. The Executive shall not
make any payment of any tax which is the subject of the claim before the Executive has
given the notice or during the 30-day period thereafter unless the Executive receives
written instructions from the Company to make such payment together with an advance of
funds sufficient to make the requested payment plus any amounts payable under this
paragraph 16 determined as if such advance were an Excise Tax, in which case the
Executive will act promptly in accordance with such instructions.
	 
	 	(ii)	 	If the Company so requests, the Executive will contest the claim by either
paying the tax claimed and suing for a refund in the appropriate court or contesting
the claim in the United States Tax Court or other appropriate court, as directed by the
Company; provided, however, that any request by the Company for the Executive to pay
the tax shall be accompanied by an advance from the Company to the Executive of funds
sufficient to make the requested payment plus any amounts payable under this paragraph
16 determined as if such advance were an Excise Tax. If directed by the Company in
writing the Executive will take all action necessary to compromise or settle the claim,
but in no event will the Executive compromise or settle the claim or cease to contest
the claim without the written consent of the Company; provided, however, that the
Executive may take any such action if the Executive waives in writing her right to a
payment under this paragraph 16 for any amounts payable in connection with such claim.
The Executive agrees to cooperate in good faith with the Company in contesting the
claim and to comply with any reasonable request from the Company concerning the contest
of the claim, including the pursuit of administrative remedies, the appropriate forum
for any judicial proceedings, and the legal basis for contesting the claim. Upon
request of the Company, the Executive shall take appropriate appeals of any judgment or
decision that would require the Company to make a payment under this paragraph 16.
Provided that the Executive is in compliance with the provisions of this clause (ii),
the Company shall be liable for and indemnify the Executive against any loss in
connection with, and all costs and expenses, including attorneys’ fees, which may be
incurred as a result of, contesting the claim, and shall provide to the Executive
within 30 days after each written request therefor by the Executive cash advances or
reimbursement for all

15

 

	 	 	 	such costs and expenses actually incurred or reasonably expected to be incurred by
the Executive as a result of contesting the claim.
	 
	 	(iii)	 	Should a Tax Authority finally determine that an additional Excise Tax is
owed, then the Company shall pay an additional Make-Up Amount to the Executive in a
manner consistent with this paragraph 16 with respect to any additional Excise Tax and
any assessed interest, fines, or penalties. If any Excise Tax as calculated by the
Company or Tax Counsel, as the case may be, is finally determined by a Tax Authority to
exceed the amount required to be paid under applicable law, then the Executive shall
repay such excess to the Company within 30 days of such determination; provided that
such repayment shall be reduced by the amount of any taxes paid by the Executive on
such excess which is not offset by the tax benefit attributable to the repayment.

17.     Amendment. This Agreement may be amended or cancelled only by mutual agreement of
the parties in writing without the consent of any other person. So long as the Executive lives, no
person, other than the parties hereto, shall have any rights under or interest in this Agreement or
the subject matter hereof.

18.     Applicable Law. The provisions of this Agreement shall be construed in accordance
with the laws of the State of Colorado, without regard to the conflict of law provisions of any
state.

19.     Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and this Agreement shall be construed as if such invalid or unenforceable provision were omitted
(but only to the extent that such provision cannot be appropriately reformed or modified).

20.     Waiver of Breach. No waiver by any party hereto of a breach of any provision of
this Agreement by any other party, or of compliance with any condition or provision of this
Agreement to be performed by such other party, shall operate or be construed as a waiver of any
subsequent breach by such other party of any similar or dissimilar provisions and conditions at the
same or any prior or subsequent time. The failure of any party hereto to take any action by reason
of such breach shall not deprive such party of the right to take action at any time while such
breach continues.

21.     Successors. This Agreement shall be binding upon, and inure to the benefit of,
the Company and its successors and assigns and upon any person acquiring, whether by merger,
consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets
and business, and the successor shall be substituted for the Company under this Agreement. The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no succession had taken place.

16

 

22.     Notices. Notices and all other communications provided for in this Agreement
shall be in writing and shall be delivered personally or sent by registered or certified mail,
return receipt requested, postage prepaid (provided that international mail shall be sent via
overnight or two-day delivery), or sent by facsimile or prepaid overnight courier to the parties at
the addresses set forth below (or such other addresses as shall be specified by the parties by like
notice). Such notices, demands, claims and other communications shall be deemed given:

	(a)	 	in the case of delivery by overnight service with guaranteed next day delivery, the next day
or the day designated for delivery;
	 
	(b)	 	in the case of certified or registered U.S. mail, five days after deposit in the U.S. mail;
or
	 
	(c)	 	in the case of facsimile, the date upon which the transmitting party received confirmation of
receipt by facsimile, telephone or otherwise;

provided, however, that in no event shall any such communications be deemed to be given later than
the date they are actually received. Communications that are to be delivered by the U.S. mail or
by overnight service or two-day delivery service are to be delivered to the addresses set forth
below:

to the Company:

4545 Airport Way

Denver, CO 80239

Attn:  General Counsel

Fax:    (303) 567-5761

or to the Executive:

4425 Stanford Avenue

Dallas, TX 75225

All notices to the Company shall be directed to the attention of the General Counsel of the
Company, with a copy to the Secretary of the Company. Each party, by written notice furnished to
the other party, may modify the applicable delivery address, except that notice of change of
address shall be effective only upon receipt.

23.     Dispute
Resolution. In the event either party contends the other has not complied
with a provision of this Agreement, the party claiming a violation of this Agreement shall advise
the other party, in writing, of the specifics of the claim. The parties will thereafter meet and
attempt to resolve their differences through non-binding mediation in Denver, Colorado before a
mutually agreed upon mediator prior to any legal action. Such mediation shall be completed in a
period not to exceed 30 days from the date of such written notification of claim, unless the
parties agree in writing to mutually extend the time. If one or both parties find no acceptable
agreement, each party is free to pursue any other remedies available by law, except that Executive
agrees to waive her right to seek certain remedies in court, including the right to jury trial and
the right to receive punitive or exemplary damages.

17

 

24.     Legal and Enforcement Costs. The provisions of this paragraph 24 shall apply if
it becomes necessary or desirable for the Executive to retain legal counsel or incur other costs
and expenses in connection with either enforcing any and all of her rights under this Agreement or
defending against any allegations of breach of this Agreement by the Company:

	(a)	 	The Executive shall be entitled to recover from the Company reasonable attorneys’ fees, costs
and expenses incurred by her in connection with such enforcement or defense.
	 
	(b)	 	The Executive shall submit to the Company, within 30 days of incurring an expense subject to
reimbursement pursuant to this paragraph 24, appropriate documentation evidencing that the
Executive has incurred the expense and the amount thereof. Within 30 days of receipt of such
documentation, the Company shall pay to the Executive (or, at the Executive’s direction, to
directly to the Executive’s attorney) any payments that are otherwise to be made pursuant to
this paragraph 24.
	 
	(c)	 	The Executive shall be entitled to select her legal counsel; provided, however, that such
right of selection shall not affect the requirement that any costs and expenses reimbursable
under this paragraph 24 be reasonable.
	 
	(d)	 	The Executive’s rights to payments under this paragraph 24 shall not be affected by the final
outcome of any dispute with the Company; provided, however, that to the extent that the
arbitrators shall determine that under the circumstances recovery by the Executive of all or a
part of any such fees and costs and expenses would be unjust or inappropriate, the Executive
shall not be entitled to such recovery; and to the extent that such amount have been recovered
by the Executive previously, the Executive shall repay such amounts to the Company.

25.     Survival of Agreement. Except as otherwise expressly provided in this Agreement,
the rights and obligations of the parties to this Agreement shall survive the termination of the
Executive’s employment with the Company.

26.     Entire Agreement. Except as otherwise noted herein or in any separation agreement
subsequently entered into by the Executive and the Company, this Agreement, including any
Exhibit(s) attached hereto, constitutes the entire agreement between the parties concerning the
subject matter hereof and supersedes all prior and contemporaneous agreements, if any, between the
parties relating to the subject matter hereof; provided, however, that nothing in this Agreement
shall be construed to limit any policy or agreement that is otherwise applicable relating to
confidentiality, rights to inventions, copyrightable material, business and/or technical
information, trade secrets, solicitation of employees, interference with relationships with other
businesses, competition, and other similar policies or agreement for the protection of the business
and operations of the Company and the Subsidiaries.

27.     Representations. The Executive represents and warrants to the Company that (a)
she has the legal right, power and capacity to execute, deliver and perform this Agreement, (b) the
execution, delivery and performance of this Agreement by the Executive does not require any further
authorization of the Executive or any other person or entity, and (c) this Agreement has been duly
executed and delivered by the Executive and is the legal, valid and binding obligation

18

 

of the Executive, enforceable against the Executive in accordance with its terms. The
Executive and the Company represent to each other that (i) it is the intent of each of them that
neither the execution and delivery by the Executive of this Agreement nor compliance with or
fulfillment of the terms, conditions or provisions hereof will conflict with, result in a breach of
the terms, conditions or provisions of any agreement to which the Executive is a party with any
other party or by which the Executive is bound or any requirements of laws affecting the Executive,
(ii) the Company does not intend to receive from the Executive, and the Executive does not intend
to provide to the Company, any proprietary or confidential information of any prior employer of the
Executive, and (iii) it is the intent of the Executive and the Company that the Executive’s
performance of services in accordance with the terms of this Agreement will not result in a breach
or violation of any employment agreement, noncompetition agreement or confidentiality agreement
between the Executive and any other person or entity.

28.     Special Section 409A Rules. Notwithstanding any other provision of this Agreement
to the contrary, if any payment or benefit hereunder is subject to section 409A of the Code, and if
such payment or benefit is to be paid or provided on account of the Executive’s Date of Termination
(or other separation from service or termination of employment):

	(a)	 	and if the Executive is a specified employee (within the meaning of section 409A(a)(2)(B) of
the Code) and if any such payment or benefit is required to be made or provided prior to the
first day of the seventh month following the Executive’s separation from service or
termination of employment, such payment or benefit shall be delayed until the first day of the
seventh month following the Executive’s separation from service; and
	 
	(b)	 	the determination as to whether the Executive has had a termination of employment (or
separation from service) shall be made in accordance with the provisions of section 409A and
the guidance issued thereunder without application of any alternative levels of reductions of
bona fide services permitted thereunder.

19

 

     IN WITNESS THEREOF, the Executive has hereunto set her hand, and the Company has caused these
presents to be executed in its name and on its behalf, all as of the Effective Date.

/s/ Diane S. Detering-Paddison 

Executive

ProLogis

By: /s/ Jeffrey H. Schwartz

Its: Chief Executive Officer

20

 

Exhibit A

Definition of Change in Control

“Change in Control” means the first to occur of any of the following:

	 	(i)	 	the consummation of a transaction, approved by the shareholders of ProLogis, to
merge ProLogis into or consolidate ProLogis with another entity, sell or otherwise
dispose of all or substantially all of its assets or adopt a plan of liquidation,
provided, however, that a Change in Control shall not be deemed to have occurred by
reason of a transaction, or a substantially concurrent or otherwise related series of
transactions, upon the completion of which 50% or more of the beneficial ownership of
the voting power of ProLogis, the surviving corporation or corporation directly or
indirectly controlling ProLogis or the surviving corporation, as the case may be, is
held by the same persons (although not necessarily in the same proportion) as held the
beneficial ownership of the voting power of ProLogis immediately prior to the
transaction or the substantially concurrent or otherwise related series of
transactions, except that upon the completion thereof, employees or employee benefit
plans of ProLogis may be a new holder of such beneficial ownership; or
	 
	 	(ii)	 	the “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act) of
securities representing 50% or more of the combined voting power of ProLogis is
acquired, other than from ProLogis, by any “person” as defined in Sections 13(d) and
14(d) of the Exchange Act (other than any trustee or other fiduciary holding securities
under an employee benefit or other similar equity plan of ProLogis); or
	 
	 	(iii)	 	at any time during any period of two consecutive years, individuals who at the
beginning of such period were members of the Board cease for any reason to constitute
at least a majority thereof (unless the election, or the nomination for election by
ProLogis’s shareholders, of each new trustee was approved by a vote of at least
two-thirds of the trustees still in office at the time of such election or nomination
who were trustees at the beginning of such period).

For purposes of the foregoing, “Exchange Act” means the Securities Exchange Act of 1934, as
amended.exv10w12

Exhibit 10.12

					
	 	 	 	 	 
	 
	 	GUITTARD®
	 	FIRM
	 
	 	 	 	CONTRACT
	 
	 	 	 	G120, G118
	 
	 	Since 1868
	 	March 28, 2008

GUITTARD CHOCOLATE CO. OF BURLINGAME, CALIFORNIA, AGREES TO SELL, AND

	 	 	 	 	 	 	 
	ROCKY MOUNTAIN CHOCOLATE FACTORY
	 	 	 	 	 	 
	265 TURNER DRIVE
	 	ACCT:	 	      475155	 	 
	DURANGO, CO 81301
	 	 	 	PHONE: 970-247-4943	 

ATTN: MR. BRYAN MERRYMAN

AGREES TO PURCHASE THE FOLLOWING SUBJECT TO THE CONDITIONS INDICATED BELOW:

	 	 	 	 	 	 	 	 	 
	QTY.	 	ITEM	 	PACK	 	PRICE PER POUND	 	F.O.B. LOCATION
	*
	 	*	 	*	 	*	 	*

F.O.B. SEE ABOVE

WITHDRAWALS TO START NOW                     AND TO BE COMPLETED BY September 20, 2008

     At seller’s option withdrawal date may be extended ninety days at an additional charge of one
hundred and thirty cents per hundred weight.

     Our terms are 2% ten days, thirty days net, seller’s credit department having the right to
determine the amount of open credit during the thirty day period. If buyer fails to fulfill the
terms of payment, the seller has the right to defer shipments until such payments are made.

     Should any form of tax be levied by the United States Government, or any political
subdivisions, on these items, or on the raw materials contained therein, it shall be assumed and
paid for by the buyer.

     Performance of this contract by the seller shall be excused in the event of floods, fires,
strike, plant disablement, war, raw material controls, acts of God, or other conditions beyond its
control, no matter where such event occurs.

     Buyer will be protected against advance in price, but it is understood and agreed that the
above prices are NOT GUARANTEED AGAINST decline.

	 	 	 	 	 	 	 
	ACCEPTED BY:

	 	 	 	ACCEPTED BY:	 	 
	 
	 	 	 	 	 	 
	ROCKY MTN. CHOCOLATE FACTORY
 

CUSTOMER NAME

	 	 
	 	GUITTARD CHOCOLATE COMPANY
 

	 	 
	/s/ Bryan J. Merryman
 

BUYER

	 	 
	 	/s/ Gary Guittard
 

	 	 
	April 4, 2008
 

	 	 
	 	March 28, 2008
 

	 	 
	Date

	 	 	 	Date	 	 

CUSTOMER COPY

Legend:

 

			
	*	 	The material has been omitted pursuant to a request for confidential treatment and such
material has been filed separately with the Commission.

GUITTARD CHOCOLATE COMPANY

MANUFACTURERS OF CHOCOLATE AND COCOA PRODUCTS • 10 GUITTARD ROAD, BURLINGAME, CA 94010-2203

P.O. BOX 4308 • BURLINGAME, CA 94011-4308

(650) 697-4427 • (800) 468-2462 • FAX (650) 692-2761 • www.guittard.com

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]