Document:

Filed by Bowne Pure Compliance

EXHIBIT 10.51

AMENDED AND RESTATED

MANAGEMENT EMPLOYMENT AGREEMENT

The following agreement (hereinafter known as “Agreement”) is hereby entered into on June 17, 2008
between Steven M. Eisenstein (hereinafter known as “Employee”) and eResearchTechnology, Inc.
(together with its affiliated corporations hereinafter known as the “Company”), a Delaware
corporation having its principal offices at 30 S. 17th Street, Philadelphia, PA 19103.

	1.	 	DUTIES AND RESPONSIBILITIES
	 
	 	 	Employee agrees to hold the position of Vice President, interim Chief Financial Officer,
Secretary and Corporate Controller and shall report to the President and Chief Executive
Officer; provided, however, that at such time as the Company hires a permanent Chief
Financial Officer other than the Employee, Employee’s position shall revert to Vice
President and Corporate Controller and he shall report to the Chief Financial Officer.
	 
	2.	 	BEST EFFORTS
	 
	 	 	Employee agrees to devote his/her best efforts to his/her employment with the Company, on a
full-time (no less than 40 hours/week) basis. He/She further agrees not to use the
facilities, personnel or property of the Company for private business benefit.
	 
	3.	 	ETHICAL CONDUCT
	 
	 	 	Employee will conduct his or her self in a professional and ethical manner at all times and
will comply with all company policies as well as all State and Federal regulations and laws
as they may apply to the services, products, and business of the Company.
	 
	4.	 	TERM OF THE AGREEMENT
	 
	 	 	This Agreement will be effective upon full execution and will continue year to year unless
terminated.

 

 

 

	5.	 	COMPENSATION

	 	a.	 	Salary shall be $150,000/year payable in equal installments as per the
company’s payroll policy. Salary shall be considered on an annual basis and adjusted
based on performance.

	 	b.	 	Benefits shall be the standard benefits of the Company, as they shall exist
from time to time.

	 	c.	 	This position qualifies for the Executive Bonus Plan of the Company. For 2008,
the Employee’s bonus target is 25% of his/her base salary if the Company meets its
Board approved objectives for the year, and may be increased or decreased based on
performance as per the 2008 bonus plan. The Employee will also be eligible to
participate in the Executive Bonus Plan each year thereafter for the life of the
Agreement at a level to be determined by the Compensation Committee of the Company’s
Board of Directors.

	 	d.	 	Employee will be entitled to a special bonus in an amount up to $25,000,
payable upon the earlier of (i) the Company’s appointment of a permanent Chief
Financial Officer or (ii) the date on which the Company’s Report on Form 10-Q for the
Fiscal Quarter Ended June 30, 2008 is filed with the Securities and Exchange Commission
(the “SEC”), and a second special bonus in an amount up to $25,000 payable on the date
on which the Company’s Report on Form 10-Q for the Fiscal Quarter Ended September 30,
2008 is filed with SEC if the Company has not appointed a permanent Chief Financial
Officer by such date. The amount of any such special bonus payable to Employee will be
determined by the Company’s President and Chief Executive Officer based on the extent
to which Employee, in the discretion of the Company’s President and Chief Executive
Officer, achieves the following performance goals: (A) timely filing of all reports
required to be filed by the Company with the SEC; (B) timely completion of each
material item required to be completed in connection with closing the Company’s books
for a fiscal quarter; and (C) successful progress toward the integration of financial
reporting and financial statement preparation for the Company and Covance Cardiac
Safety Services, Inc. Any bonus payable pursuant to this Section 5(d) will be paid in
a lump sum, subject to applicable withholding, within ten days after the bonus becomes
payable.

	 	e.	 	Employee is being granted incentive options to purchase 5,000 shares of the
Company’s Common Stock on the date hereof, with an exercise price equal to the closing
price of such Common Stock on the date hereof, with such options to vest in four equal
consecutive annual installments commencing on the first anniversary hereof, all in
accordance with the terms of the Company’s Amended and Restated 2003 Equity Incenetive
Plan.

 

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	6.	 	NON-DISCLOSURE
	 
	 	 	Employee acknowledges that employment with the Company requires him/her to have
access to confidential information and material belonging to the Company, including customer
lists, contracts, proposals, operating procedures, trade secrets and business methods and
systems, which have been developed at great expense by the Company and which Employee
recognizes to be unique assets of the Company’s business. Upon termination of employment
for any reason, Employee agrees to return to the Company any such confidential information
and material in his possession with no copies thereof retained. Employee further agrees,
whether during employment with the Company or any time after the termination thereof
(regardless of the reason for such termination), he/she will not disclose nor use in any
manner, any confidential or proprietary material relating to the business, operations, or
prospects of the Company except as authorized in writing by the Company or required during
the performance of his/her duties.

	7.	 	BUSINESS INTERFERENCE; NONCOMPETITION

	 	a.	 	During employment with the Company and for a period of one year (the
“Restrictive Period”) thereafter (regardless of the reason for termination) Employee
agrees he/she will not, directly or indirectly, in any way for his/her own account, as
employee, stockholder, partner, or otherwise, or for the account of any other person,
corporation, or entity: (i) request or cause any of the Company’s suppliers, customers
or vendors to cancel or terminate any existing or continuing business relationship with
the Company; (ii) solicit, entice, persuade, induce, request or otherwise cause any
employee, officer or agent of the Company to refrain from rendering services to the
Company or to terminate his/her relationship, contractual or otherwise, with the
Company; or (iii) induce or attempt to influence any customer or vendor to cease or
refrain from doing business or to decline to do business with the Company or any of its
affiliated distributors or vendors.

	 	b.	 	The Employee agrees that, during the Restrictive Period, the Employee will not,
directly or indirectly, accept employment with, provide services to or consult with, or
establish or acquire any interest in, any business, firm, person, partnership,
corporation or other entity which engages in any business or activity that is the same
as or competitive with the business conducted by the Company in any state of the United
States of America and in any foreign country in which any customer to whom the Company
is providing services or technology is located.

	8.	 	FORFEITURE FOR BREACH; INJUNCTIVE RELIEF

	 	a.	 	Any breach of the covenants made in Sections 6 and 7 hereof shall result in the
forfeiture of the Employee’s right to any and all payments which may be required to be
made under this Agreement following such breach and shall relieve the Company of any
obligation to make such payments.

	 	b.	 	The Employee acknowledges that his/her compliance with the covenants in
Sections 6 and 7 hereof is necessary to protect the good will and other proprietary
interests of the Company and that, in the event of any violation by the Employee of the
provisions of Section 6 or 7 hereof, the Company will sustain serious, irreparable and
substantial harm to its business, the extent of which will be difficult to determine
and impossible to remedy by an action at law for money damages. Accordingly, the
Employee agrees that, in the event of such violation or threatened violation by the
Employee, the Company shall be entitled to an injunction before trial from any court of
competent jurisdiction as a matter of course and upon the posting of not more than a
nominal bond in addition to all such other legal and equitable remedies as may be
available to the Company.

 

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	 	c.	 	The rights and remedies of the Company as provided in this Section 8 shall be
cumulative and concurrent and may be pursued separately, successively or together
against Employee, at the sole discretion of the Company, and may be exercised as often
as occasion therefor shall arise. The failure to exercise any right or remedy shall in
no event be construed as a waiver or release thereof.

	 	d.	 	The Employee agrees to reimburse the Company for any expenses incurred by it in
enforcing the provisions of Sections 6 and 7 hereof if the Company prevails in that
enforcement.

	9.	 	INVENTIONS
	 
	 	 	Employee agrees to promptly disclose to the Company each discovery, improvement, or
invention conceived, made, or reduced to practice (whether during working hours or
otherwise) during the term of employment. Employee agrees to grant to the Company the
entire interest in all of such discoveries, improvements, and inventions and to sign all
patent/copyright applications or other documents needed to implement the provisions of this
paragraph without additional consideration. Employee further agrees that all works of
authorship subject to statutory copyright protection developed jointly or solely, while
employed, shall be considered a work made for hire and any copyright thereon shall belong to
the Company. Any invention, discovery or improvement conceived, made or disclosed during the
one year period following the termination of employment with the Company shall be deemed to
have been made, conceived or discovered during employment with the Company.
	 
	 	 	Employee acknowledges any discoveries, improvements and other inventions made prior to the
date of initial employment with the Company or the date hereof, which have not been filed in
the United States Patent Office, are attached on Exhibit A, which shall be executed by both
the Employee and the Company.
	 
	10.	 	NO CURRENT CONFLICT
	 
	 	 	Employee hereby assures the Company that he/she is not currently restricted by any existing
employment or non-compete agreement that would conflict with the terms of this Agreement.

 

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	11.	 	TERM; TERMINATION AND TERMINATION BENEFITS

	 	a.	 	Employment is “at will” which means that either the Company or Employee may
terminate at any time, with or without cause or good reason, upon written notice given
at least 30 days prior to termination.

	 	b.	 	This Agreement shall terminate upon the death of the Employee. In addition,
if, as a result of a mental or physical condition which, in the reasonable opinion of a
medical doctor selected by the Company’s Board of Directors, can be expected to be
permanent or to be of an indefinite duration and which renders the Employee unable to
carry out the job responsibilities held by, or the tasks assigned to, the Employee
immediately prior to the time the disabling condition was incurred, or which entitles
the Employee to receive disability payments under any long-term disability insurance
policy which covers the Employee for which the premiums are reimbursed by the Company
(a “Disability”), the Employee shall have been absent from his/her duties hereunder on
a full-time basis for 120 consecutive days, or 180 days during any twelve month period,
and within thirty (30) days after written notice (which may occur before or after the
end of such 120 or 180 day period) by the Company to Employee of the Company’s intent
to terminate the Employee’s employment by reason of such Disability, the Employee shall
not have returned to the performance of his/her duties hereunder, the Employee’s
employment hereunder shall, without further notice, terminate at the end of said
thirty-day notice.

	 	c.	 	The Company may also terminate the Employee’s employment under this Agreement
for Cause. For purposes of this Agreement the Company shall have “Cause” to terminate
the Employee’s employment if the Employee, in the reasonable judgment of the Company,
(i) fails to perform any reasonable directive of the Company that may be given from
time to time for the conduct of the Company’s business; (ii) materially breaches any of
his/her commitments, duties or obligations under this Agreement; (iii) embezzles or
converts to his/her own use any funds of the Company or any business opportunity of the
Company; (iv) destroys or converts to his/her own use any property of the Company,
without the Company’s consent; (v) is convicted of, or indicted for, or enters a guilty
plea or plea of no contest with respect to, a felony; (vi) is adjudicated an
incompetent or (vii) violates any federal, state, local or other law applicable to the
business of the Company or engages in any conduct which, in the reasonable judgment of
the Company, is injurious to the business or interests of the Company. The Company must
give the Employee written notice of the Employee’s breach under sections 11.c.(i.),
11.c.(ii) and 11.c.(vii) and an opportunity to cure within fifteen (15) days of such
written notice. If the Employee fails to cure, the Company may terminate the Employee
for Cause and shall give notice of termination to the Employee as required under
Section 11.a.

	 	d.	 	Upon any termination of this Agreement, the Company shall have no further
obligation to Employee other than for annual salary and bonus earned through the
date of termination, and no severance pay or other benefits of any kind shall be
payable; provided, however, that in the event the Company terminates this Agreement
other than for Cause or as a result of the death or Disability of the Employee, the
Company shall provide to the Employee (i) severance equal to 25% of his/her
then-current annual salary and applicable prorated bonus, based on 100% performance,
payable in one lump sum in accordance with the Company’s policy and (ii)
continuation of Benefits (as hereafter defined), subject to applicable benefit plan
provisions, for three months.

	 	e.	 	The term “Benefits” as utilized in this Section 11, shall mean standard health,
dental, disability, life and accident insurance benefits, all of which are subject to
any applicable premium co-pay, and car allowance.

 

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	12.	 	MISCELLANEOUS

	 	a.	 	This Agreement and any disputes arising herefrom shall be governed by
Pennsylvania law.

	 	b.	 	In the event that any provision of this Agreement is held to be invalid or
unenforceable for any reason, including without limitation the geographic or business
scope or duration thereof, this Agreement shall be construed as if such provision had
been more narrowly drawn so as not to be invalid or unenforceable.

	 	c.	 	This Agreement supersedes all prior agreements, arrangements, and
understandings, written or oral, relating to the subject matter, including without
limiting the generality of the foregoing the Agreement dated May 23, 2005 between
Employee and the Company, which is being amended and restated hereby.

	 	d.	 	The failure of either party at any time or times to require performance of any
provision hereof shall in no way affect the right at a later time to enforce the same.
No waiver by either party of any condition or of the breach by the other of any term or
covenant contained in this Agreement shall be effective unless in writing and signed by
the aggrieved party. A waiver by a party hereto in any one or more instances shall not
be deemed or construed as a further or continuing waiver of any such condition or
breach or a waiver of any other condition, or of the breach of any other term or
covenant set forth in this Agreement.

	 	e.	 	Any notice required or permitted to be given under this Agreement shall be in
writing and shall be deemed to have been given when delivered in person, sent by
certified mail, postage prepaid, or delivered by a nationally recognized overnight
delivery service addressed, if to the Company at 30 S. 17th Street, 8th Floor,
Philadelphia, PA 19103 Attn: President and if to the Employee, at the address of
his/her personal residence as maintained in the Company’s records.

 

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IN WITNESS WHEREOF, the Company and the Employee have executed this Agreement the day and year
first above written.

	 	 	 	 	 	 	 	 	 
	For Employee:	 	 	 	For the Company:	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Steven M. Eisenstein

	 	 	 	By:	 	/s/ Michael J. McKelvey	 	 
	 

Steven M. Eisenstein

	 	 
	 	 	 	 

Michael J. McKelvey, 

     President and Chief Executive Officer
	 	 

 

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    Exhibit
10.11

    

    EMPLOYMENT
AGREEMENT

    

            This
EMPLOYMENT AGREEMENT (the "Agreement")
is made effective as of October 23, 2006 (the "Effective
Date") by and between Douglas Emmett, Inc. (the "Company"),
Douglas Emmett Properties, LP (the "Partnership"),
and Jordan L. Kaplan ("Executive")
with respect to the following facts and circumstances:

    

            WHEREAS,
the Company desires to engage Executive as the President and Chief Executive
Officer of the Company, during the Agreement Term (as defined below), on the
terms and conditions and for the consideration set forth herein.

    

            NOW,
THEREFORE, in consideration of the premises and mutual covenants herein and for
other good and valuable consideration, the parties agree as
follows:

    

    1.    Effectiveness;
Term of Employment.    Subject to the provisions of
Section 8 of this Agreement, Executive shall be employed by the Company on
the terms and subject to the conditions set forth in this Agreement for a period
commencing on the Effective Date and ending on December 31, 2010.
Commencing on January 1, 2011 and on each January 1 thereafter (each
an "Extension
Date"), the Agreement Term shall be automatically extended for an
additional one-year period unless either the Company or Executive provides the
other party hereto sixty (60) days' prior written notice before the next
Extension Date that the Agreement Term shall not be so extended (the "Agreement
Term").

    

    2.    Position;
Duties.    During the Agreement Term, Executive shall
serve as President and Chief Executive Officer of the Company and the
Partnership. In such position, Executive shall have such duties and authority
commensurate with such position as shall be determined from time to time by the
Board of Directors of the Company (the "Board")
including such duties and responsibilities with respect to any subsidiary,
affiliate or joint venture of the Company (each a "Subsidiary").
Subject to the discretion of the Nominating Committee of the Board, Executive
shall serve as a member of the Board and of the board of directors (or
equivalent) of any Subsidiary without additional compensation. Executive's
duties will be principally performed at the Company's headquarters, which will
be located within the West Side of Los Angeles, with such travel as may be
required to perform his duties hereunder as reasonably requested by the
Company.

    

    3.    Base
Salary.    During the Agreement Term, the Company
shall pay Executive a base salary at the annual rate of $950,000, payable in
regular installments in accordance with the Company's usual payment practices.
Executive's salary shall be reviewed at least annually by the Compensation
Committee of the Board (the "Committee")
and Executive shall be entitled to such increases in Executive's base salary, if
any, as may be determined from time to time in the sole and absolute discretion
of the Committee. 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 during the
Agreement Term, Executive shall be eligible to earn an annual bonus award (the
"Annual
Bonus") based upon reasonable criteria to be reasonably established not
later than the first thirty (30) days of that fiscal year by the
Compensation Committee of the Board in consultation with Executive. The amount
of the bonus shall equal the following percentages of Executive's Base Salary
during that fiscal year:

    

    
      	
              Threshold

            	 
      	
              Target

            	 
      	
              Superior

            	 
      	
              Outperformance

            
	
              65%

            	 
      	
              100%

            	 
      	
              150%

            	 
      	
              200%

            

    

    

    Unless
otherwise approved by the Board in its discretion, no bonus will be payable to
Executive for any year if Executive does not meet the Threshold criteria
established for that year. The Company will pay any Annual Bonus earned by
Executive with respect to a given fiscal year in accordance with the terms and
conditions of the Company's annual bonus plan, but no later than the earlier of
(i) the fifteenth day of the third month following
the end of such fiscal year or (ii) the date that other senior executives
are paid similar bonuses.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.    Long-Term
Incentive Compensation.    

            5.1.    Option
Award.    As of the Effective Date, Executive shall
be granted an option to purchase 2,488,889 shares of Company stock (the "Option
Award") pursuant to a separate written Non Qualified Stock Option
Agreement under the Company's 2006 Omnibus Stock Incentive Plan (the "Plan").
The Option Award shall be subject to the terms and conditions of that agreement
and the Plan.

            5.2.    LTIP
Award.    As of the Effective Date, Executive shall
be granted 420,000 LTIP Units (the "LTIP
Award") pursuant to a separate written LTIP Unit Award Agreement under
the Plan. The LTIP Award shall be subject to the terms and conditions of that
agreement and the Plan.

    

    6.    Employee
Benefits.    During the Agreement Term, Executive
shall be entitled to participate in the Company's employee welfare and
retirement benefit plans and perquisite programs as in effect, and subject to
such modification as the Company may determine necessary or appropriate, from
time to time (collectively "Employee
Benefits"), on the same basis as those benefits are generally made
available to other senior executives of the Company, which shall in any case
include (i) the payment or reimbursement of tax/financial services, the use
of and payment of all related expenses for an automobile, and a personal
umbrella insurance policy all in amounts and on terms not less favorable than
those provided to Executive by the Company's predecessor provided that, any such
payment or reimbursement by the Company shall be made no later than the
fifteenth day of the third month following the end of the calendar year in which
Executive incurred such expense, and (ii) medical and dental benefits
(without any co payment) for Executive, Executive's spouse and Executive's
eligible dependents on terms not less favorable than those provided to Executive
by the Company's predecessor. During the Agreement Term, Executive shall have
the right (i) to participate in any future compensation plans implemented
for executives of the Company on a basis commensurate with his position and
(ii) to be indemnified by the Company for all actions taken as an officer,
director or agent of the Company or its Subsidiaries to the full extent provided
under law or pursuant to the Indemnification Agreement of even date herewith.
Subject to the policies and procedures of the Company, in addition to any
accrued personal time off ("PTO")
accrued with respect to service to the predecessors of the Company, Executive
shall be entitled to accrue twenty five (25) paid days of PTO per year
during the Agreement Term.

    

    7.    Business
Expenses.    During the Agreement Term, the Company
shall reimburse Executive for all reasonable business expenses incurred by
Executive in the performance of Executive's duties hereunder in accordance with
the Company's policies as in effect from time to time.

    

    8.    Termination.    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. Following Executive's termination of employment, except as set
forth in this Section 8, Executive (and Executive's legal representative
and estate) shall have no further rights to any compensation or any other
benefits under this Agreement.

    

            8.1.    Definitions.    

    

            "Accrued
Rights" means the sum of the following: (i) any accrued but unpaid
Base Salary through the date of termination; (ii) a payment in respect of
all unpaid, but accrued and unused PTO through the date of termination;
(iii) any Annual Bonus earned but unpaid as of the date of termination for
any previously completed fiscal year (i.e., not for the year of
employment termination); (iv) reimbursement for any unreimbursed business
expenses properly incurred by Executive in accordance with Company policy
through the date of termination; (v) such rights, if any, under the Option
Award, the LTIP Award and other compensation programs and Employee Benefits to
which Executive may be entitled upon termination of
employment according to the documents governing such benefits; and (vi) any
existing rights to indemnification for prior acts through the date of
termination.

     

            "Cause"
means any of the following: (i) any act or omission by Executive which
constitutes intentional misconduct or a willful violation of law; (ii) an
act of fraud, conversion, misappropriation or embezzlement by Executive or
conviction of, indictment for (or its procedural equivalent) or entering a
guilty plea or plea of no contest with respect to a felony, the equivalent
thereof or any crime involving any moral turpitude with respect to which
imprisonment is a common punishment; or (iii) any other failure (other than
any failure resulting from incapacity due to physical or mental illness) by
Executive to perform his material and reasonable duties and responsibilities as
an employee, director or consultant of the Company or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    any
Subsidiary which continues for ten (10) days following written notice from
the Company or any Subsidiary (except in the case of a willful failure to
perform his duties or a willful breach, which shall require no notice). For
purposes of the foregoing sentence, no act, or failure to act, on Executive's
part shall be considered "willful" unless the Executive acted, or failed to act,
in bad faith or without reasonable belief that his act or failure to act was in
the best interest of the Company or any Subsidiary.

    
       

    

            "Change of
Control" shall be deemed to have occurred if

              (i)  there
shall be consummated (a) any consolidation or merger of the Company, other
than a merger or consolidation of the Company in which (1) the holders of
the Company's common stock immediately prior to the merger or consolidation have
at least fifty one percent (51%) ownership of the total voting power of the
surviving entity immediately after the merger or consolidation, and (2) no
person (other than an Exempted Holder as defined below) beneficially owns (as
such term is defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, 20% or more of the total voting power of the surviving entity or
(b) any sale, lease, exchange or other transfer (in one transaction or a
series of related transactions) of all, or substantially all, of the assets of
the Company, or

    

             (ii)  the
shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company, or

    

            (iii)  any
person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the "Exchange
Act")) other than an Exempted Holder (as defined below) shall become the
beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act)
of twenty percent (20%) or more of the Company's common stock. "Exempted
Holder" means (a) the Company or any majority-owned Subsidiary
(provided that this
exclusion applies solely to the ownership levels of the Company or the
majority-owned Subsidiary); (b) any trustee, fiduciary or other person or
entity holding securities under any employee benefit plan or trust sponsored or
maintained by the Company or any Subsidiary; or (c) any underwriter or
placement agent temporarily holding securities pursuant to an offering of such
securities. However, a Change in Control shall not be deemed to have occurred if
a person's percentage interest increases over twenty percent (20%) solely as a
result of a decrease in the outstanding stock because of an acquisition of
securities by the Company; provided, however, that a "Change in
Control" shall be deemed to have occurred on any subsequent acquisitions of the
Company's common stock by that person (other than pursuant to a stock split,
stock dividend, or similar transaction) at a time when that person beneficially
owns twenty percent (20%) or more of the Company's outstanding common stock,
or

    

            (iv)  the
Board shall cease for any reason to have a majority of Uncontested Directors.
"Uncontested
Directors" means directors who were initially elected or initially
nominated (a) by a vote of at least two-thirds of the then Uncontested
Directors and (b) not as a result of an actual or threatened election
contest with respect to directors or as a result of any other actual or
threatened solicitation of proxies or consents by or on behalf of any person
other than the Board, including by reason of agreement
intended to avoid or settle any such actual or threatened contest or
solicitation.

    

            "Disability"
means physical or mental incapacity whereby Executive is unable with or without
reasonable accommodation for a period of six (6) consecutive months or for
an aggregate of nine (9) months in any twenty-four (24) consecutive
month period to perform the essential functions of Executive's
duties.

     

            "Good
Reason" shall be present where Executive gives notice to the Board of his
voluntary resignation (a) within one hundred and twenty (120) days
after the occurrence of any of the following, without Executive's written
consent: (i) the failure of the Company to pay or cause to be paid
Executive's Base Salary or Annual Bonus, when due hereunder, subject to a ten
(10) day cure period by the Company (except in the case of a willful
failure which shall require no notice); (ii) diminution in Executive's
status, including, title, position, duties, authority or responsibility
(including Executive ceasing to be a member of the Board other than as a result
of a voluntary resignation), subject to a thirty (30) day cure period by
the Company (except in the case of a willful breach, which shall require no
notice); (iii) relocation of the Company's executive offices to a location
outside of the West Side of Los Angeles; or (iv) the failure of the Company
to obtain the express written assumption of this Agreement pursuant to
Section 11.5 hereof (unless such Agreement is assumed by operation of law);
(b) within eighteen (18) months after the occurrence of a Change of
Control.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

            8.2.    Termination
by the Company for Cause or By Executive's Resignation without Good
Reason.    The Agreement Term and Executive's
employment hereunder may be terminated by the Company for Cause and shall
terminate upon Executive's resignation without Good Reason, and in either case
Executive shall be entitled to receive only his Accrued Rights.

    

            8.3.    Death/Disability.    The
Agreement Term and Executive's employment hereunder shall terminate upon
Executive's death or Disability. Upon termination of Executive's employment
hereunder due to death or Disability, Executive's legal representative or estate
(as the case may be) shall be entitled to receive (i) the Accrued Rights
plus (ii) an
amount equal to a pro-rated portion of the Annual Bonus Executive otherwise
would have been paid for the fiscal year in which such termination of employment
occurs, payable when the Annual Bonus would otherwise have been paid to
Executive pursuant to Section 4, based upon (a) actual performance for
such fiscal year, as determined at the end of such fiscal year and (b) the
percentage of such fiscal year that shall have elapsed through the date of
Executive's termination of employment; plus (iii) continued
medical benefits for Executive and Executive's spouse and eligible dependents
who at the time of Executive's termination are enrolled in the Company's medical
plan. Such benefits shall be substantially identical to the benefits maintained
for other senior executives of the Company and shall be provided for a period of
twelve (12) months following Executive's termination of employment.
Executive acknowledges that such benefit continuation is intended, and shall be
deemed, to satisfy the obligations of the Company and any of its subsidiaries
and affiliates to provide continuation of benefits under Section 4980B of
the Internal Revenue Code of 1986, as amended ("COBRA")
for such period and that the Company may satisfy such obligation by paying any
applicable COBRA premiums.

    

            8.4.    Termination
by the Company without Cause or Resignation by Executive for Good
Reason.    The Agreement Term and Executive's
employment hereunder may be terminated by the Company without Cause at any time
and for any reason or by Executive's resignation for Good Reason at any time
upon thirty (30) days written notice by the terminating party, although the
Company may waive services during that period. 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, Executive shall be entitled
to receive (i) the Accrued Rights, plus (ii) provided that
Executive first executes and returns to the Company (and does not revoke) a
release of all claims that is in form and substance reasonably satisfactory to the Company, and subject to Executive's
continued compliance with the provisions of Section 9 of this Agreement (to
the extent expressly applicable after the Agreement Term):

    

            8.4.1. an
amount, payable in a lump sum without discount within 30 days of the date
of termination, equal to three (3) times the average of Executive's
compensation over the last three full calendar years ending prior to the
termination date including (i) the Base Salary; (ii) the Annual Bonus
and (iii) the value (based on a Black Scholes formula in the case of
options and value of the underlying grants in the case of LTIP or outperformance
plans) of any equity (including stock, LTIPs and options) or other compensation
plans granted or awarded to Executive. In the event that there are less than
three full calendar years completed after the execution of this Agreement, the
average shall be based on (i) 2006 (including compensation paid by the
predecessor of the Company) and (ii) any other full completed years prior
to the date of termination.

    

            8.4.2. continued
medical and dental benefits for Executive, Executive's spouse and Executive's
eligible dependents, who at the time of Executive's termination are enrolled in
the Company's benefits plans provided for a period of three (3) years
following Executive's termination of employment. Such benefits shall be
substantially identical to the benefits maintained for other senior executives
of the Company. Executive acknowledges that such benefit continuation is
intended, and shall be deemed, to satisfy the obligations of the Company and any
of its subsidiaries and affiliates to provide continuation of benefits under
COBRA for such period and that the Company may satisfy such obligation by paying
any applicable COBRA premiums or causing such premiums to be paid.

     

            8.5.    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 written notice to the other party, which indicates the
specific termination provision in this Agreement relied upon and sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of employment under the provision so indicated and the date of
employment termination.

    

            8.6.    Employee
Termination and Board/Committee/Officer
Resignation.    Upon termination of Executive's
employment for any reason, Executive's employment with each of the Company and
each Subsidiary shall be terminated and Executive shall be deemed to resign, as
of the date of such termination and to the extent applicable, from the boards of
directors (and any committees thereof) of the Company and any Subsidiary and
affiliates and as an officer of the Company and any Subsidiary. Executive shall
confirm such resignation(s) in writing to the Company.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.    Covenants.    

    

            9.1.    Confidentiality.    Executive
acknowledges that, in his employment hereunder, he will occupy a position of
trust and confidence with the Company and its Subsidiaries. Executive agrees
that Executive shall not during the Agreement Term and for two (2) years
thereafter, except (i) as may be required to perform his duties hereunder
or as required by applicable law or (ii) until such information shall have
become public other than by Executive's unauthorized disclosure or
(iii) with the prior written consent of the Company, use, disclose or
disseminate any trade secrets, confidential information or any other information
of a secret, proprietary, confidential or generally undisclosed nature relating
to the Company and/or any Subsidiary, or their respective businesses, contracts,
projects, proposed projects, revenues, costs, operations, methods or
procedures.

    

            9.2.    Non-solicitation.    Executive
agrees that, for a period of one (1) year immediately following the end of
Executive's employment with the Company, except acting on behalf of the Company
during the Employment Term, Executive shall not, either directly or indirectly,
solicit or participate in the solicitation of any employee or consultant of the
Company to terminate or materially alter his, her or its
relationship with the Company or any Subsidiary. This restriction shall not
apply to Executive's assistant.

    

            9.3.    Full
time; Non competition.    During the Agreement 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 with the rendition of such services either directly or
indirectly; except that
nothing herein shall preclude Executive from accepting appointment to or
continuing to serve on any board of directors or trustees of any business
entity, trade organization or any charitable organization or engaging in any
activities or managing his investments and affairs so long as such activities in
the aggregate do not interfere with the performance of Executive's duties
hereunder or conflict with this Section 9.3 herein. During the Agreement
Term, without the prior approval of the Board, Executive shall not in any city,
town, county, parish where the Company and/or any Subsidiaries directly or
indirectly engages in business or is actively contemplating engaging in
business: (i) engage in a competing business for Executive's own account;
(ii) enter the employ of, or render any consulting or any other services
to, any entity that competes with the Company and/or any of its affiliates; or
(iii) become interested in any such competing entity in any capacity,
including, without limitation, as an individual, partner, shareholder, officer,
director, principal, agent, trustee or consultant; provided, however, Executive
may own, directly or indirectly, solely as a passive investment, 5% or less of
any class of securities of any entity traded on any national securities exchange
and any assets acquired in compliance with this Section. A business shall not be
deemed a "competing business" if it does not invest in or deal with the same
basic product type as the Company does from time to time. At this time the basic
product type of the Company is large and mid-size office buildings and
multi-family properties in Los Angeles County and Hawaii (larger than 50,000 sq.
ft. for office properties and 50 units for apartment buildings).

     

            9.4.    Company
Policies.    During the Agreement Term, Executive
shall also be subject to and shall abide by all written reasonable policies and
procedures of the Company provided to him, including regarding the protection of
confidential information and intellectual property and potential conflicts of
interest, except to the extent that such policies and procedures conflict with
the other provisions of this Agreement, in which case this Agreement shall
control. Executive acknowledges that the Company may amend any such policies and
guidelines from, time to time, and that Executive remains at all times bound by
their most current version to the extent made known to him and reasonable in
scope.

     

            9.5.    Intellectual
Property.    Except as permitted in Section 9.3
and as provided under Section 2870 of the California Labor Code, the
Company shall be the sole owner of all the products and proceeds of Executive's
services hereunder including, without limitation, all materials, ideas,
concepts, formats, suggestions, developments, and other intellectual properties
that Executive may acquire, obtain, develop or create in connection with his
services hereunder and during the Agreement Term, free and clear of any claims
by Executive (or anyone claiming under Executive) of any kind or character
whatsoever (other than Executive's rights and benefits hereunder). Executive
shall, at the request of the Company, execute such assignments, certificates or
other instruments as the Company may from time to time deem necessary or
desirable to evidence, establish, maintain, perfect, protect, enforce or defend
the Company's right, title and interest in and to any such products and proceeds
of Executive's services hereunder. Notwithstanding the above, Executive shall
not be considered to be in breach of this Section 9.5 in connection with
any property or other material of a type described in this Section 9.5
which does not become the property of the Company, so long as Executive does
not, directly or indirectly, have or obtain any personal interest in such
property or material.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

            9.6.    General.    Executive
and the Company intend that: (i) this Section 9 concerning (among
other things) the exclusive services of Executive to the Company and/or its
Subsidiaries shall be construed as a series of separate covenants; (ii) if
any portion of the restrictions set forth in this Section 9 should, for any
reason whatsoever, be declared invalid by an arbitrator or a court of competent jurisdiction, the validity or enforceability of
the remainder of such restrictions shall not thereby be adversely affected; and
(iii) Executive declares that the territorial and time limitations set
forth in this Section 9 are reasonable and properly required for the
adequate protection of the business of the Company and/or its Subsidiaries. In
the event that any such territorial or time limitation is deemed to be
unreasonable by an arbitrator or a court of competent jurisdiction, Executive
agrees to the reduction of the subject territorial or time limitation to the
area or period which such arbitrator or court shall have deemed reasonable. All
of the provisions of this Section 9 are in addition to any other written
agreements on the subjects covered herein that Executive may have with the
Company and/or any of its Subsidiaries and are not meant to and do not excuse
any additional obligations that Executive may have under such
agreements.

    

            9.7.    Specific
Performance.    Executive acknowledges and agrees
that the confidential information, non-solicitation, intellectual property
rights and other rights of the Company referred to in Section 9 of this
Agreement are each of substantial value to the Company and/or its subsidiaries
and affiliates and that any breach of Section 9 by Executive would cause
irreparable harm to the Company and/or its Subsidiaries, for which the Company
and/or its Subsidiaries would have no adequate remedy at law. Therefore, in
addition to any other remedies that may be available to the Company and/or any
of its Subsidiaries under this Agreement or otherwise, the Company and/or its
Subsidiaries shall be entitled to obtain temporary restraining orders,
preliminary and permanent injunctions and/or other equitable relief to
specifically enforce Executive's duties and obligations under this Agreement, or
to enjoin any breach of this Agreement, without the need to post a bond or other
security and without the need to demonstrate special damages. Furthermore,
Executive agrees that any damages suffered by the Company and/or its
Subsidiaries as a result of Executive's breach of Executive's duties and
obligations under this Agreement shall entitle the Company and/or its
Subsidiaries to offset such damages against any payments to be made pursuant to
this Agreement, to the extent permitted by applicable law.

    

    10.    Excise
Tax Gross-Up Payments.    Company agrees to pay
Executive the amount or amounts specified in Schedule B, at such time or
times as specified in Schedule B, as an excise tax Gross-Up Payment as
provided in Schedule B. In connection therewith, the Company and Executive
agree to the provisions of Schedule B, which are incorporated herein by
this reference.

     

    11.    Miscellaneous.    

    

            11.1.    Governing
Law.    This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of California,
without regard to conflicts of laws principles or rules thereof.

     

            11.2.    Entire
Agreement; Amendment.    This Agreement (and the
Option Award and the LTIP Award) represents the entire agreement and
understanding between the parties and, except as expressly stated in this
Agreement, supersedes any prior agreement, understanding or negotiations
respecting such subject. No change to or modification of this Agreement shall be
valid or binding unless it is in writing and signed by Executive and a duly
authorized director of the Company.

    

            11.3.    No
Waiver.    Failure to insist upon strict compliance
with any of the terms, covenants, or conditions hereof shall not be deemed a
waiver of such term, covenant, or condition, nor shall any waiver or
relinquishment of, or failure to insist upon strict compliance with, any right
or power hereunder at any one or more times be deemed a waiver or relinquishment
of such right or power at any other time or times. No waiver of any breach of
any term or provision of this Agreement shall be construed to be, nor shall be,
a waiver of any other breach of this Agreement. No waiver shall be binding
unless in writing and signed by the party waiving the breach.

    

            11.4.    Severability;
Invalid Provision.    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. The
parties understand and agree that if any provision of
this Agreement shall, for any reason, be adjudged by any court or arbitrator of
competent jurisdiction to be invalid or unenforceable, such judgment shall not
affect, impair, or invalidate the remainder of this Agreement, but shall be
confined in its operation to the provision of this Agreement directly involved
in the controversy in which such judgment shall have been
rendered.

    

            11.5.    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 successor in interest
to 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    substantially
all of the business operations of the Company. 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. The Company shall 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 such succession had taken place (except to the extent such assumption
would occur by operation of law). It is anticipated that the Executive's
employer of record and salary and bonus payor may be the Partnership or another
Subsidiary, but the Company and the Partnership will be jointly and severally
liable for all amounts payable to Executive hereunder.

    

            11.6.    Set
Off.    The Company's obligation to pay Executive the
amounts provided and to make the arrangements provided hereunder shall be
subject to set-off, counterclaim or recoupment of amounts owed by Executive to
the Company or its Subsidiaries to the extent permitted by applicable
law.

    

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

    

            11.8.    Notice.    Any
and all notice given hereunder shall be in writing and shall be deemed to have
been duly given when received, if personally delivered; when transmitted, if
transmitted by telecopy, or electronic or digital transmission method, upon
receipt of telephonic or electronic confirmation; the day after the notice is
sent, if sent for next day delivery to a domestic address using a generally
recognized overnight delivery service (e.g., FedEx); and upon
receipt, if sent by certified or registered mail, return receipt requested. In
each case notice will be sent as follows:

     

    
      	
              If to the Company:

            	
              Douglas
      Emmett, Inc.

              808
      Wilshire Blvd., Suite 200

              Santa
      Monica, CA 90401

              Attention: Chief Operating Officer

              Telephone:
      (310) 255-7700

            
	
              If
      to Executive:

            	
              Jordan L.
      Kaplan

              808
      Wilshire Blvd., Suite 200

              Telephone:
      310 255 7700

              Santa
      Monica, CA 90401

            

    

    

    Either
party may change its address and/or facsimile number for notice purposes by duly
giving notice to the other party pursuant to this Section.

    

            11.9.    Executive's
Representations.    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. Executive represents and warrants that he is not subject to
any employment agreement, nondisclosure agreement,
common law nondisclosure obligation, fiduciary duty, noncompetition agreement,
restrictive covenant or any other obligation to any former employer or to any
other person or entity in any way relating to the right or ability of Executive
to be employed by and/or perform services for the Company and its Subsidiaries.
Executive further represents and warrants that he has not brought to or
disclosed to the Company or to its Subsidiaries, and covenants that he will not
bring to or disclose to the Company or to its Subsidiaries or use in connection
with his employment with the Company, any trade secrets or proprietary
information from any of his prior employers or from any other person or
entity.

    

            11.10.    Cooperation
in Third-Party Disputes.    At the request of the
Company, Executive shall cooperate with the Company and/or its Subsidiaries and
each of their respective attorneys or other legal representatives (collectively
referred to as "Attorneys")
in connection with any claim, litigation, or judicial or arbitral proceeding
which is now pending or may hereinafter be brought against the Company and/or
any of its Subsidiaries or affiliates by any third party. Executive's duty of
cooperation shall include, but shall not be limited to, (a) meeting with
the Company's and/or its Subsidiaries' Attorneys by telephone or in person at
mutually convenient times and places in order to state truthfully Executive's
knowledge of the matters at issue and recollection of events; (b) appearing
at the Company's and/or its Subsidiaries' and/or their Attorneys' request (and,
to the extent possible, at a time 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    convenient
to Executive that does not conflict with the needs or requirements of
Executive's then-current employer or personal commitments) as a witness at
depositions, trials or other proceedings, without the necessity of a subpoena,
in order to state truthfully Executive's knowledge of the matters at issue;
and
(c) signing at the Company's request declarations or affidavits that
truthfully state the matters of which Executive has knowledge. Such services
will be without additional compensation if Executive is then employed by the
Company or any Subsidiary and for reasonable compensation and subject to his
reasonable availability if he is not so employed. The Company shall promptly
reimburse Executive for Executive's actual and reasonable travel or other
out-of-pocket expenses that Executive may incur in cooperating with the Company
and/or its Subsidiaries under this Section 11.10.

    

            11.11.    Withholding
Obligations.    The Company, or any other entity
making a payment, may withhold and make such deductions from any amounts payable
under this Agreement such federal, state and local taxes as may be required to
be withheld or deducted from time to time pursuant to any applicable law,
governmental regulation and/or order. The amount of compensation payable to
Executive pursuant to this Agreement shall be "grossed up" as necessary (on an
after-tax basis) to compensate for any additional social security withholding
taxes due as a result of Executive's shared employment by the any
Subsidiary.

    

            11.12.    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. A facsimile signature shall be deemed to be the same as an original
signature.

     

            11.13.    Interpretation.    Executive
understands that this Agreement is deemed to have been drafted jointly by the
parties and that the parties had a reasonable opportunity to retain legal
counsel for such purpose. Any uncertainty or ambiguity shall not be construed
for or against any party based on attribution of drafting to any
party.

    

            11.14.    Headings.    Titles
or captions of Sections contained in this Agreement are inserted only as a
matter of convenience and for reference, and in no way define, limit, extend or
describe the scope of this Agreement or the intent of any provisions
hereof.

    

            11.15.    Survival
of Provisions.    All other rights and obligations of
the parties hereto, other than those applicable by their express terms only
during the Agreement Term, shall survive any termination or expiration of this
Agreement or of Executive's employment with the Company, and shall be fully
enforceable thereafter. 

    

            11.16.    Arbitration
of Disputes.    Except as is necessary for Executive
and the Company to preserve their respective rights under this Agreement by
seeking necessary equitable relief (including, but not limited to, the Company's
rights under Section 9 of this Agreement) from a court of competent
jurisdiction, the Company and Executive agree that any and all disputes based
upon, relating to or arising out of this Agreement (including, but not limited
to, any breach or alleged breach of this Agreement, or any dispute concerning
the formation of this Agreement, or the validity, scope and/or enforceability of
this arbitration provision), Executive's employment relationship with the
Company and/or the termination of that relationship, and/or any other dispute by
and between the Company and Executive, including any and all claims Executive
may at any time attempt to assert against the Company, shall be submitted to
binding arbitration in Los Angeles, California, in accordance with the rules of
JAMS, provided that the arbitrator shall allow for discovery sufficient to
adequately arbitrate any alleged claims, including access to essential documents
and witnesses, and otherwise in accordance with California Code of Civil
Procedure § 1283.05. The party prevailing in any action shall be entitled to its
reasonable attorneys' fees in enforcing its rights hereunder. In any event, the
Company shall pay any expenses that Executive would not otherwise have incurred
if the dispute had been adjudicated in a court of law, rather than through
arbitration, including the arbitrator's fee, any administrative fee and any
filing fee in excess of the maximum court filing fee in the jurisdiction in
which the arbitration is commenced. Judgment in a court of competent
jurisdiction may be had on any decision and award of the arbitrator. For these
purposes, the parties agree to submit to the jurisdiction of the state and
federal courts located in Los Angeles County, California.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

            11.17.    Section 409A
of the Code.    This Agreement is intended to comply
with Section 409A of the Code. Each party to this Agreement intends and
agrees that this Agreement shall be interpreted and modified to the minimum
extent necessary and to provide as near as possible the same economic benefit to
the Executive provided hereunder in the absence of such modification, as
mutually agreed by counsel for both parties, so as to avoid the imposition of
any excise tax under Section 409A of the Internal Revenue Code and the
regulations thereunder. 

    

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

    
      	
              Douglas
      Emmett, Inc.

            	 
      	
              Executive

            
	
               
      

              /S/
      WILLIAM KAMER

            	 
      	
               
      

              /S/
      JORDAN L. KAPLAN

            
	
              By:

            	 
      	
               
      William Kamer

            	 
      	
              Jordan L.
      Kaplan

            
	
              Title:

            	 
      	
               
      Chief Financial Officer

            	 
      	 
      
	
               

              Douglas
      Emmett Properties, LP

            	 
      	 
      
	
              By:

            	 
      	
               
      Douglas Emmett Management, Inc.

            	 
      	 
      
	
              Its:

            	 
      	
               
      General Partner

            	 
      	 
      
	
               

               /S/
      WILLIAM KAMER

            	 
      	 
      
	
              By:

            	 
      	
               
      William Kamer

            	 
      	 
      
	
              Title:

            	 
      	
               
      Chief Financial Officer

            	 
      	 
      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

Schedule A

    CALIFORNIA
LABOR CODE SECTION 2870

    INVENTION
ON OWN TIME-EXEMPTION FROM AGREEMENT

            "(a) Any
provision in an employment agreement which provides that an employee shall
assign, or offer to assign, any of his or her rights in an invention to his or
her employer shall not apply to an invention that the employee developed
entirely on his or her own time without using the employer's equipment,
supplies, facilities, or trade secret information except for those inventions
that either:

    

            (1)   Relate
at the time of conception or reduction to practice of the invention to the
employer's business, or actually or demonstrably anticipated research or
development of the employer; or

    

            (2)   Result
from any work performed by the employee for the employer.

    

            (b)   To
the extent a provision in an employment agreement purports to require an
employee to assign an invention otherwise excluded from being required to be
assigned under subdivision (a), the provision is against the public policy of
this state and is unenforceable." 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule B

    Excise
Tax Gross Up

    I.

    Subject
to the following provisions of this Schedule B, but otherwise anything in
this Agreement to the contrary notwithstanding, in the event that Executive
shall become entitled to payments and/or benefits provided by this Agreement or
any other amounts in the "nature of compensation" (whether pursuant to the terms
of this Agreement or any other plan, arrangement or agreement with the Company,
any person whose actions result in a change of ownership or effective control
covered by Section 280G of the Code or any successor provision or any
person affiliated with the Company or such person) as a result of such change in
ownership or effective control, but determined without regard to any additional
payments required under this Schedule B (a "Payment")
would be subject to the excise tax imposed by Section 4999 of the 1986
Internal Revenue Code, as amended (the "Code"), or
any interest or penalties are incurred by Executive with respect to such excise
tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the "Excise
Tax"), the Company shall make a payment (a "Gross-Up
Payment") to Executive in an amount such that, after payment by Executive
of all income or other taxes (and any interest and penalties imposed with
respect thereto) and Excise Taxes imposed on the Gross-Up Payment, Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed on the
Payments.

    II.

    Subject
to the provisions of Paragraph III of this Schedule B, all
determinations required to be made under this Schedule B, including whether
and when a Gross-Up Payment is required and the amount of such Gross-Up Payment
and the assumptions to be utilized in arriving at such determination, shall be
made by a certified public accounting firm designated by Executive (the "Executive
Accounting Firm") which shall provide detailed supporting calculations
both to the Company and to Executive within fifteen (15) business days of
the receipt of notice from Executive that there has been a Payment, or such
earlier times as is requested by Executive. If Executive Accounting Firm
determines that no Excise Tax is payable by Executive, it shall, upon the
written request of Executive, furnish Executive with a written opinion that
failure to report the Excise Tax on Executive's applicable federal income tax
return would not result in the imposition of a negligence or similar penalty.
The calculations prepared by Executive Accounting Firm shall be reviewed on
behalf of the Company by the Company's independent auditors (the "Company
Accounting Firm") which shall provide its conclusions, together with
detailed supporting calculations, both to the Company and Executive within
fifteen (15) business days after receipt of the calculations and supporting
materials prepared by Executive Accounting Firm. In the event of a dispute
between the Company Accounting Firm and Executive Accounting Firm, such firms
shall, within five (5) business days of receipt of the conclusions and
supporting materials prepared by the Company Accounting Firm, jointly select a
third nationally recognized certified public accounting firm (the "Third Accounting
Firm") to resolve the dispute. The Third Accounting Firm shall submit its
conclusions to the Company and Executive within fifteen (15) business days
after receipt of notice of its appointment hereunder and the decision of the
Third Accounting Firm shall be final, binding and conclusive upon Executive and
the Company subject to any determination by the Internal Revenue Service. All
fees and expenses of all such accounting firms shall be borne solely by the
Company. Any Gross-Up Payment shall be paid by the Company to Executive within
five (5) business days after the earlier of acceptance by the Company of
the calculations prepared by Executive Accounting Firm or the Company's receipt
of the Third Accounting Firm's determination.

    III.

    As a
result of the uncertainty in the application of Section 4999 of the Code at
the time of the initial determination of whether any Gross-Up Payment should be
made hereunder, it is possible that a Gross-Up Payment will have been due but
not made by the Company (an "Underpayment"),
consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant this
Schedule B and Executive thereafter is required to make a payment of any
Excise Tax, Executive Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid
by the Company to or for the benefit of Executive.

    IV.

    Executive
shall notify the Company in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Company of the Gross-up
Payment. Such notification shall be given as soon as practicable (but not later
than ten (10) business days after Executive is informed in writing of such
claim) and shall apprise the Company of the nature of such claim and the date on
which such claim is requested to be paid. Executive shall not pay such claim
prior to the expiration of the thirty (30) day period following the date on
which it gives such notice to the Company (or such shorter period ending on the
date that any payment of taxes with respect to such claim is due). If the
Company notifies Executive in writing prior to the expiration of such period
that it desires to contest such claim, Executive shall:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    1.

    Give the
Company any information reasonably requested by it relating to such
claim;

    

    2.

    Take such
action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably
selected by the Company and acceptable to Executive;

    

    3.

    Cooperate
with the Company in good faith in order effectively to contest such claim;
and

    

    4.

    Permit
the Company to participate in any proceedings relating to such
claim.

    

    V.

    The
Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred in connection with a contest of a claim under
Paragraph IV of this Schedule B and shall indemnify and hold Executive
harmless, on an after-tax basis, for any Excise Tax or income tax (including
interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Schedule B, the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct Executive to pay the tax claimed and sue for a refund
or contest the claim in any permissible manner, and Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine. If the Company directs Executive to pay such claim and
sue for a refund, the Company shall advance the amount of such payment to
Executive on an interest-free basis and shall indemnify and hold Executive
harmless, on an after-tax basis, from any Excise Tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance, provided
that if any such advance would be in violation of the Sarbanes-Oxley Act the
Company shall pay, rather than advance, the amounts to Executive. Any extension
of the statute of limitations relating to payment of taxes for the taxable year
of Executive with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company's control of
the contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and Executive shall be entitled to settle or contest,
as the case may be, any other issue raised by the Internal Revenue Service or
any other taxing authority.

    

    VI.

    If, after
the receipt by Executive of an amount advanced by the Company pursuant to this
Schedule B, Executive becomes entitled to receive any refund with respect
to such claim, Executive shall (subject to the Company's complying with the
requirements of this Schedule B) promptly pay to
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by
Executive of an amount advanced by the Company pursuant to this Schedule B,
a determination is made that Executive shall not be entitled to any refund with
respect to such claim and the Company does not notify Executive in writing of
its intent to contest such denial of refund prior to the expiration of thirty
days after such determination, then such advance shall be forgiven and shall not
be required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be
paid.

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