Document:

EX-10.4

EMPLOYMENT AGREEMENT

Agreement made as of March 19, 2007 between Standard Microsystems Corporation, a Delaware
corporation having an office at 80 Arkay Drive, Hauppauge, New York 11788 (“Company”) and Steven J.
Bilodeau, residing at 9 Merriman Point Road, Center Sandwich, NH 03227 (“Executive”).

W I T N E S S E T H:

WHEREAS, Company desires to retain the Executive as the Company’s President and Chief Executive
Officer, upon the terms and conditions hereinafter in this Agreement set forth, and the Executive
desires to be so employed; and

WHEREAS, the Company and the Executive acknowledge that the Executive is currently a “Specified
Employee” as defined under Section 409A of the Internal Revenue Code (the “Code”), thereby
necessitating certain changes to the Executive’s original Employment Agreement dated March 18,
1999; and

WHEREAS, a primary change from the original Employment Agreement dated March 18, 1999 shall be to
ensure that certain payments are not made until 6 months after the Executive separates from service
with the Company, except to the extent that any exceptions may exist under Section 409A of the Code
and the regulations promulgated thereunder or any successor thereto (collectively referred to
herein as “409A”); and

WHEREAS, the original Employment Agreement dated March 18, 1999 is more than seven years old, has
been amended several times during the intervening period, and is being updated,

Now, therefore, in consideration of the premises and the mutual covenants and conditions contained
herein, the parties hereto agree as follows:

	1.	 	Employment. The Company hereby agrees to employ the Executive, and the Executive
hereby accepts such employment, upon the terms and conditions hereinafter set forth.

	2.	 	Title and Duties. Company shall employ the Executive as the Company’s President and
Chief Executive Officer, effective as of the date of execution hereof. The Executive shall
render his services faithfully and to the best of his ability and devote his full business
time and attention to the services to be rendered by him hereunder. Company shall use best
efforts to cause Executive’s election and re-election as a director of Company during the
Employment Term.

3. Term; Severance; Change in Control.

	 	a.	 	The term of employment under this Agreement (the “Employment Term”) shall
commence as of the date hereof and shall continue through 18 November 2008.
Thereafter, the Employment Term shall be automatically extended for one-year periods,
unless either party shall give notice (“Contrary Notice”), at least ninety (90) days
prior to the end of the Employment Term, that the Employment Term shall not be so
extended.

	 	b.	 	Notwithstanding Section 3.a, the Employment Term shall terminate prior to any
date otherwise specified in Section 3.a, upon:

	 	i.	 	Executive’s death or Disability.
“Disability” shall mean the physical or mental incapacity of the
Executive which prevents Executive from performing the Executive’s
duties as herein provided for a continuous period of 60 days or an
aggregate period of 90 days during any consecutive six-month period. Disability
shall be deemed to have occurred as of the end of the applicable period.
Termination as a result of death is effective on the date of death;

	 	ii.	 	Notice by Company of termination for “Cause”, which shall mean
the Executive’s: (x) material dishonesty in the course of employment, (y)
willful and material failure to perform his duties hereunder, following
delivery of written notice thereof and a reasonable period, not to exceed 30
days from delivery of notice, to cure such failure, or (z) conduct, regardless
of whether in the course of employment, constituting a felony or any crime
involving moral turpitude;

	 	iii.	 	Notice by Company of termination other than for Cause.
Reduction of compensation or duties, contract non-renewal, or requirement to
relocate outside of Long Island or “other breach” hereof shall be considered
notice of termination under this subsection. An “other breach” of the contract
is not effective until the Company fails to cure the “other breach” within 30
days following delivery of written notice thereof by the Executive to Company;

	 	iv.	 	Notice of voluntary termination by Executive within six months
after a “Change in Control” of Company. For purposes hereof, a “Change in
Control” of Company shall mean an event that Company would report, as such,
pursuant to Securities and Exchange Commission Form 8-K, or as defined under
409A; or

	 	v.	 	Notice of voluntary termination by Executive within six months
after Company’s shareholders fail to elect Executive as a member of the
Company’s Board of Directors.

	 	c.	 	(A) Should Company terminate the Employment Term pursuant to paragraph (iii)
of Section 3.b: Company shall pay Executive, in lump sum on the day of termination;
(i) an amount equal to one year’s Base Salary, an amount equal to the value of any
deferred compensation (not including stock appreciation rights, stock options, or stock
grants), and any accrued, unused vacation and unreimbursed business expenses (including
automobile and relocation expense, and tax gross up on such automobile and relocation
expenses); (ii) an amount equal to the annual Bonus described in Section 4.a.(ii)
herein; (iii) Company shall continue to provide Company paid individual life insurance
and shall pay the cost of all family group health insurance plans under COBRA, provided
by Company to Executive as of the date of such termination, for a period of 18 months
from the date of termination of the Employment Term, or until Executive shall have
sooner obtained full-time employment; and (iv) any stock option, stock grants
(including restricted stock) or stock appreciation right (“SAR”) granted by Company
will immediately vest and any stock option or SAR granted to Executive shall remain
exercisable for 24 months after said termination (the “Extension Period”), and expire
at the end of such 24 month period; provided, that the Extension Period shall be
limited to such shorter period of time as may be required to comply with 409A and as
may be set forth in the applicable stock option plan,

(B) Should Company terminate the Employment Term pursuant to paragraph (i) of
Section 3.b: Company shall pay Executive, in lump sum on the day of termination;
(i) an amount equal to one year’s Base Salary, an amount equal to the value of any
deferred compensation (not including stock appreciation rights, stock options or
stock grants), and any accrued, unused vacation and unreimbursed business expenses
(including automobile and relocation expense, and tax gross up on such automobile
and relocation expenses); (ii) an amount equal to the annual Bonus described in
Section 4.a.(ii) herein; (iii) Company shall continue to provide Company paid
individual life insurance and shall subsidize all family group health insurance
plans under COBRA, provided by Company to Executive as of the date of such
termination, for a period of 18 months from the date of termination of the
Employment Term; and (iv) the value as if fully vested of any vested or unvested
stock grants, (including restricted stock awards (RSAs)), any stock options and any
SARS. For purposes of this Agreement the value of any stock option or SAR shall be
the spread between the grant price and the closing price of the common stock of the
Company measured on the exchange on which the Company’s stock is traded on the date
of the relevant event, or the next day on which the exchange is open if the exchange
is closed on the date of the relevant event; the value of any common stock shall be
the closing price of the common stock of the Company measured on the exchange on
which it is traded on the date of the relevant event or the next day on which the
exchange is open if the exchange is closed on the date of the relevant event. Once
the Company makes such payment all such SARS, stock options and stock grants shall
be automatically deemed cancelled.

This Section 3.c sets forth Company’s entire severance obligation to Executive in
case of termination of the Employment Term on any basis referred to in this Section
3.c.

	 	d.	 	Should Company terminate the Employment Term pursuant to paragraph 3.b (ii)
Company’s obligations hereunder shall be fully satisfied upon payment by the Company to
the Executive of any unpaid Base Salary, accrued, unused vacation time and unreimbursed
business expenses through the date of termination, provided, however, that such payment
shall not prevent the Company from seeking relief respecting any claim it might have
against the Executive hereunder or otherwise.

	 	e.	 	In the event of either a Change in Control of Company or the Company’s shareholders
failing to elect Executive as a member of the Board of Directors or removing Executive as
a Director once elected, the Company shall pay executive, in lump sum on the day of the
relevant event set forth above in this paragraph (e); (i) an amount equal to one year’s
Base Salary, the value of any deferred compensation (not including stock appreciation
rights, stock options or stock grants), and any accrued, unused vacation and unreimbursed
business expenses (including automobile and relocation expense, and tax gross up on such
automobile and relocation expenses); (ii) an amount equal to the annual Bonus described
in Section 4.a.(ii) herein; (iii) Company shall continue to provide Company paid
individual life insurance and shall subsidize all family group health insurance plans
under COBRA, provided by Company to Executive as of the date of the relevant event set
forth above, for a period of 18 months from the date of such event; (iv) the value as if
fully vested of any vested or unvested stock grants (including RSAs), any stock options,
and any SARS. Once the Company makes such payment all such SARS, stock options and stock
grants shall be automatically deemed cancelled.

	 	f.	 	The parties acknowledge that the payment of some or all of the above benefits may
be considered to be a form of nonqualified deferred compensation benefits subject to
409A. In recognition of this fact, the parties hereby agree and confirm as follows:

	 	i.	 	Notwithstanding anything to the contrary in this Agreement, in
no event shall any benefits be paid to Executive prior to the 6th month
anniversary of the Executive’s Separation from Service as defined below,
unless otherwise permissible under 409A. Any and all payments that may not be
paid prior to such 6th month anniversary shall be delayed until the
first day of the month after such 6th anniversary occurs and shall
retroactively apply to make the Executive whole for any lost benefits, with
interest at the rate of prime plus 2%, determined as of the first day of the
month in which the Separation from Service occurred. To the extent that the
Executive is required to pay for the cost of any benefits to keep them in full
force and effect during the 6 month delay period for Specified Employees, the
Executive shall also be reimbursed for such out-of-pocket expenses as of the
same date provided above with the same rate of interest.

	 	ii.	 	The parties acknowledge that the continuation of benefits under
COBRA and other benefits may be continued during the 6 month delay for
Specified Employees, but must also be incurred and paid by the December 31 of
the second calendar year following the calendar year in which a Separation from
Service occurs. To the extent that any benefits would extend beyond this
period, a single lump cash payment will be made as of the applicable December
31, in order to avoid any further deferrals of compensation.

	 	iii.	 	In the event that any payment or benefit required to be paid to
Executive pursuant to this Agreement would violate 409A, the parties agree to
amend this Agreement, to the extent necessary and reasonable to maintain the
spirit of the Agreement without resulting in a violation of 409A.

	 	iv.	 	In the event of a violation of 409A, it is not the intent of
the Company for the Executive to incur the excise tax and other penalties under
409A. Accordingly, to the extent any excise taxes or underpayment of interest
or penalties under 409A apply, the Company shall make a “gross up” payment to
the Executive, to offset the effect of any excise tax, interest or penalties
incurred in accordance with 409A, and any tax on such gross up payments, to the
extent such action is legally permitted.

	 	v.	 	All gross up payments set forth in this Agreement (including
any gross up contemplated under Section 5.c hereof) shall be made as soon as
legally permitted under 409A, but in no event later than 2 1/2 months following
the end of the fiscal year in which the event giving rise to such gross up
payment occurs, and, if permissible, before the excise tax becomes due.

	 	g.	 	Except in the event of a Change in Control, this Agreement shall not be
assignable by the Company without the written consent of Executive. The Company will
require any successor (whether by reason of a Change in Control, 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 the
obligations under this Agreement in the same manner and the same extent that the
Company would be required to perform it as if no such succession had taken place.

	 	h.	 	This Agreement shall inure to the benefit of and be enforceable by Executive’s
personal or legal representatives, executors, administrators, successors, heirs,
distributees, and legatees. If Executive should die or become disabled while any
amount is owed but unpaid to Executive hereunder, all such amounts, unless otherwise
provided herein, shall be paid to Executive’s devisee, legatee, legal guardian or other
designee, or if there is no such designee, to Executive’s estate. Executive’s rights
hereunder shall not otherwise be assignable.

	 	i.	 	To the extent that Executive is entitled to payments or benefits pursuant to
more than one part of this Section 3 at the same time, Executive shall receive the
maximum legally permissible payment and benefit; but in no event shall Executive
receive duplicative benefits or payments.

	 	j.	 	To the extent Executive receives any payment under this Section 3 of amounts
equal to the value of deferred compensation, such payments shall be in lieu of
receiving any benefit under the corresponding deferred compensation plan or arrangement
(including, without limitation, the SERP).

4. Annual compensation.

	 	a.	 	In consideration of the services to be rendered by Executive hereunder, the
Company shall pay to the Executive:

	 	i.	 	An annual base salary of $570,000, which may be increased, but
not decreased without Executive’s consent, from time to time, by Company’s
Board of Directors, based upon Compensation Committee review and recommendation
(“Base Salary”); and

	 	ii.	 	A management incentive bonus opportunity (“Bonus”), with
respect to the applicable fiscal year equal to 158.7 percent of Base Salary,
determined in accordance with Company’s Management Incentive Plan (the “MIP”),
as approved by the Board of Directors. Notwithstanding anything herein to the
contrary, the Bonus for a particular fiscal year shall be paid to the Executive
as soon as reasonably practicable following the end of such fiscal year and in
any event no later than 2 1/2 months following the end of such fiscal year;
provided that in the event payment of the Bonus to the Executive within such 2
1/2 month period is impracticable, either administratively or economically, as
determined by the Company, payment of the Bonus will be made as soon as
practicable thereafter.

	 	iii.	 	Any Bonus payable shall be paid in cash, or shares of Company
restricted stock in accordance with the MIP, as approved by the Board of
Directors. At least half of the Bonus will be paid in cash. Executive shall
have the right to demand registration for all vested stock and Company shall
use best efforts to cause such registration at Company expense to be effective.

5. Benefits; Expenses.

	 	a.	 	Executive shall be entitled to such benefits as are provided generally to Company’s
senior executive officers. In addition, Executive shall receive a $1,400 per month car
allowance, plus all expenses, including insurance, repairs and maintenance, fuel and
normal travel expenses (i.e. tolls, parking, etc.). All the preceding expenses are fully
tax protected.

Company shall furnish Executive with individual supplemental life insurance coverage
in the amount of $600,000 and individual disability income coverage.

Company shall furnish and maintain continuously directors and officers liability
insurance coverage during employment, and shall continue to indemnify and advance
legal expenses on behalf of Executive, during Employment Term and after termination
for actions occurring during the Employment Term to the extent permitted by law.
Executive shall accrue vacation time at a rate of twenty days per year. Executive
will receive a quarterly stock option or SARs distribution of Fifty Thousand
(50,000) shares on the same schedule as the Board of Directors quarterly
distribution, beginning in April 2007, and under substantially the same terms as has
been previously granted to the Executive. The Board reserves the right to change
the amount of this quarterly distribution at any time.

	 	b.	 	The Company’s Board of Directors shall fully vest Executive’s SERP benefits upon a
Change in Control of Company.

	 	c.	 	Subject to Section 3.f(v) hereof, in the event of a Change in Control of Company,
Executive is entitled to a “gross-up” payment in an amount sufficient to offset the
effect of any excise tax incurred in accordance with Section 280G of the Code).

	 	d.	 	Executive must follow the Company’s stock, options and stock appreciation rights
trading policy.

	6.	 	Other Considerations. Company shall permit Executive to hold up to two outside
directorships with companies not competing with Company, unless a greater number is approved
by the Board of Directors of the Company.

7. Intellectual Property.

a. Assignment of Inventions.

	 	i.	 	Subject to paragraph (a)(ii) below, Executive hereby assigns
and agrees to assign to Company, or to any business concern controlled by or
under common control with Company ( “Company Affiliate”) as Company shall
specify, all of Executive’s right, title and interest in and to any inventions,
formulas, techniques, processes, ideas, algorithms, discoveries, designs,
developments and improvements which Executive may make, reduce to practice,
conceive, invent, discover, design or otherwise acquire during Executive’s
employment by Company or any Company Affiliate, whether or not made during
regular working hours, relating to the actual or anticipated business,
products, research or development of Company or any Company Affiliate
(collectively, “Inventions”).

	 	ii.	 	The foregoing shall not apply to, and Executive shall not be
required to assign any of Executive’s rights in, an invention that Executive
developed entirely on Executive’s own time without using any equipment,
supplies, facilities, computer programs, or trade secret(s) and/or other
proprietary and/or confidential information of Company or any Company
Affiliate, except for those inventions that either:

	 	1.	 	Relate directly or indirectly at the time of
conception or reduction to practice of the invention, to the business
of Company or any Company Affiliate, or to the actual or contemplated
products, research or development of Company or any Company Affiliate,
or

	 	2.	 	Result from any work performed by Executive for
Company or any Company Affiliate.

	 	b.	 	Trade Secrets. Executive shall regard and preserve as confidential:
(x) all trade secrets and/or other proprietary and/or confidential information
belonging to Company or any Company Affiliate; and (y) all trade secrets and/or other
proprietary and/or confidential information belonging to a third party which have been
confidentially disclosed to Company or any Company Affiliate, which trade secrets
and/or other proprietary and/or confidential information described in (x) and (y) above
(collectively, “Confidential Information”) have been or may be developed or obtained by
or disclosed to Executive by reason of Executive’s employment. Executive shall not,
without written authority from Company to do so, use for Executive’s own benefit or
purposes, or the benefit or purpose of any person or entity other than Company or any
Company Affiliate, nor disclose to others, either during Executive’s employment with
Company or thereafter, except as required in the course of employment with Company or
any Company Affiliate, or except as required by law, any Confidential Information
(Executive, as CEO, shall have the usual and customary discretion to determine when
disclosure is required for the benefit of Company). This provision shall not apply to
Confidential Information that has been voluntarily disclosed to the public by Company
or any Company Affiliate, or otherwise entered the public domain through lawful means.
Confidential Information shall include, but not be limited to, all nonpublic
information relating to any of the following regarding Company or any Company
Affiliate: (1) business, research, development and marketing plans, strategies and
forecasts; (2) business; (3) products (whether existing, in development, or being
contemplated); (4) customers’ identities, usages, and requirements; (5) reports; (6)
formulas; (7) specifications; (8) designs, software and other technology; (9) research
and development programs; and (10) terms of contracts.

	 	c.	 	Works of Authorship. Executive agrees that any original works of
authorship, including, without limitation, all documents, blueprints, drawings, mask
works and computer programs (including, without limitation, all software, firmware,
object code, source code, documentation, specifications, revisions, supplements,
modules, and upgrades), conceived, created, performed or produced during the term of
Executive’s employment with Company or any Company Affiliate, and all foreign and
domestic, registered and unregistered, copyrights and mask work rights and applications
for registrations therefore related to any such work of authorship, in each case,
whether or not made during regular working hours, relating to the actual or anticipated
business, products, research or development of Company or any Company Affiliate
(collectively, “Works of Authorship”) shall be the exclusive property of Company or any
Company Affiliate as Company shall specify. To the extent that Executive has or
obtains any right, title or interest in or to any Works of Authorship, Executive hereby
assigns and agrees to assign to Company or any Company Affiliate as Company shall
specify, all of such right, title and interest therein and thereto. This paragraph
does not include any publicly available materials, unless such materials shall have
become public in violation of this Agreement.

	 	d.	 	Disclosure. Executive shall promptly and fully disclose any and all
Inventions and Works of Authorship to Company’s General Counsel or other official as
Company’s Board of Directors may designate for such purpose.

	 	e.	 	Further Assistance. Executive shall, during Executive’s employment
with Company or any Company Affiliate and at any time thereafter, upon the request of
and at the expense of Company or such Company Affiliate, but at no additional
compensation to Executive other than travel expense reimbursement: do reasonable acts
and things including, but not limited to, making and executing documents, applications
and instruments and giving information and testimony, in each case, deemed by Company
from time to time to be necessary or appropriate (1) to vest, secure, defend, protect
or evidence the right, title and interest of Company in and to any and all Inventions,
Works of Authorship and Confidential Information; and (2) to obtain for Company, in
relation to all such, letters patent, design registrations, copyright registrations
and/or mask work registrations, in the United States and any foreign countries, and/or
any reissues, renewals and/or extensions thereof.

	 	f.	 	Return of Documents. All media on which any Inventions, Works of
Authorship or Confidential Information may be recorded or located, including, without
limitation, documents, samples, models, blueprints, photocopies, photographs, drawings,
descriptions, reproductions, cards, tapes, discs and other storage facilities
(collectively, “Documentation”) made by Executive or that come into Executive’s
possession by reason of Executive’s employment are the property of Company and shall be
returned to Company by Executive upon termination of employment. Executive will not
deliver, reproduce, or in any way allow any Documentation to be delivered or used by
any third party without the written direction or consent of a duly authorized
representative of Company.

	8.	 	Competition and Solicitation.

	 	a.	 	Competition. Executive covenants and agrees that (a) for so long as he
shall be employed by Company or any Company affiliate, he shall not, directly or
indirectly, as principal, partner, agent, servant, employee, stockholder, or otherwise,
anywhere in the world (the “Territory”), engage or attempt to engage in any business
activity competitive with the business being conducted or, to the knowledge of
Executive prior to Notice of Termination or actual termination, whichever is earlier,
being planned to be conducted by Company or any Company affiliate, and (b) for one year
after termination, Executive shall not, in the Territory, so engage or attempt to
engage in any business activity competitive with any business conducted or planned to
be conducted by any of Company or any Company affiliate within one year prior to
termination. The foregoing shall not prohibit Executive, his affiliates, spouse, and
children from owning beneficially any publicly traded security, so long as the
beneficial ownership by all of them, when combined with the beneficial ownership of
such publicly traded security by any person (as defined above) of which any of them is
a member, constitutes less than 5% of the class of such publicly traded security.
Executive recognizes that the foregoing territorial and time limitations are reasonable
and properly required for the adequate protection of the business of Company and that
in the event that any such territorial or time limitation is deemed to be unreasonable
in any proceeding to enforce these provisions or otherwise, Executive agrees to
request, and to submit to, the reduction of said territorial or time limitation to such
an area or period as shall be deemed reasonable by the relevant tribunal. In the event
that Executive shall be in violation of the foregoing restrictive covenants, then the
time limitation thereof shall be extended for a period of time during which such breach
or breaches shall occur. The existence of any claim or cause of action by Executive
against Company, if any, whether predicated upon this Agreement or otherwise, shall not
constitute a defense to the enforcement by Company of the foregoing restrictive
covenants.

	 	b.	 	Solicitation. Executive covenants and agrees that for a period of 12
months after Executive’s termination of employment with Company for any reason,
Executive shall not, directly or indirectly, whether on behalf of the Executive or
others, solicit, lure or hire away any employees of Company or assist or aid in any
such activity.

	9.	 	Separation from Service.

For purposes of this Agreement, a Separation from Service shall have the same meaning as
under 409A. Consistent with Proposed Treasury Regulation Section 1.409A-1(h), or any
subsequent guidance under 409A, no Separation from Service shall occur if an Executive
continues to perform services as a consultant or an employee in accordance with the
following rules:

	 	a.	 	Leave of Absence. For purposes of 409A, the employment relationship is
treated as continuing in effect while an Executive is on military leave, sick leave, or
other bona fide leave of absence, as long as the period of leave does not exceed 6
months, or if longer, as long as the Executive’s right to reemployment with the Company
is provided either by statute or contract. Otherwise, after a 6 month leave of
absence, the employment relationship is deemed terminated.

	 	b.	 	Part-Time Status. Whether or not a termination of employment occurs is
determined based upon all facts and circumstances. However, in the event that services
provided by an Executive are insignificant, a Separation from Service shall be deemed
to have occurred. For purposes of 409A, if an Executive is providing services to the
Company or any Company Affiliates at a rate that is at least equal to 20% of the
services rendered, on average, during the immediately preceding 3 full calendar years
of employment (or such lesser period), and the annual compensation for such services is
at least 20% of the average annual compensation earned during the final 3 full calendar
years of employment (or such lesser period), no termination shall be deemed to have
occurred since such services are not insignificant.

	 	c.	 	Consulting Services. Where an Executive continues to provide services
to the Company or any Company Affiliates in a capacity other than as an employee, a
Separation from Service shall not be deemed to have occurred if the Executive is
providing services at an annual rate that is 50% or more of the services rendered, on
average, during the immediately preceding 3 full calendar years of employment (or such
lesser period) and the annual remuneration for such services is 50% or more of the
annual remuneration earned during the final 3 full calendar years of employment (or
such lesser period).

10. Miscellaneous.

	 	a.	 	Executive agrees that a remedy at law for any breach or proposed or attempted
breach of the provisions of Sections 8 or 9 shall be inadequate and that Company shall
be entitled to injunctive relief with respect to such breach or proposed or attempted
breach, in addition to any other remedy it might have. The provisions of Sections 8
and 9 shall be enforceable notwithstanding the existence of any claim or cause of
action of Executive against Company or any Company Affiliate, whether predicated on
such Section or otherwise.

	 	b.	 	Except as otherwise provided herein, the agreements, assignments and
appointments made by Executive hereunder and the obligations of Executive herein shall
survive the termination of Executive’s employment with Company, whether by Executive or
Company.

	 	c.	 	This Agreement may be modified only by a written instrument duly executed by
the parties hereto. No term or provision of this Agreement shall be deemed waived, and
no breach excused, unless such waiver or consent shall be in writing and signed by the
parties hereto. The failure of either party or any Company Affiliate at any time to
enforce performance of any provision of this Agreement shall in no way affect such
person’s rights thereafter to enforce the same, nor shall the waiver by any such person
of any breach of any provision hereof be deemed to be a waiver of any other breach of
the same or any other provision hereof.

	 	d.	 	If any provision of this Agreement, or the application of such provision, is
held invalid, the remainder of this Agreement and the application of such provision to
persons or circumstances other than those as to which it is held invalid shall not be
affected thereby.

	 	e.	 	Any notice authorized or required to be given hereunder shall be deemed given
or made, if in writing, upon personal delivery, by telecopier on the date that
transmission is confirmed electronically, if such confirmation occurs by 4:00PM on such
date and such date is a business day, or otherwise, on the first business day
thereafter, or three days after mailing by certified or registered mail, return receipt
requested, to the Company, at the address set forth at the top of the first page, to
the attention of Mr. Timothy P. Craig, Chairman of the Compensation Committee of the
Board of Directors, or to the Executive at the address to which this letter is
addressed, as set forth above, or such other address of which either party shall give
notice to the other.

	 	f.	 	This Agreement shall be governed by the laws of the state of New York,
applicable to an agreement negotiated, signed, and wholly to be performed in such
state.

	 	g.	 	Any dispute arising hereunder (including but not limited to interpretation or
performance) shall be resolved in New York, NY by arbitration before a single
arbitrator in accordance with the rules of the American Arbitration Association, except
that the arbitrator shall be an active member of the New York bar specializing for at
least 15 years in general corporate law and contracts practice, who shall apply the
terms of this agreement and make findings of fact and conclusions of law in making the
arbitration award.

	 	h.	 	This Agreement supersedes and replaces any prior Employment Agreements or other
agreements. Notwithstanding the foregoing, the Indemnification Agreement between the
Company and Executive shall remain in full force and effect; in the event of any
conflict between this Agreement and the Indemnification Agreement the terms and
conditions of the Indemnification Agreement shall govern.

	 	i.	 	The following sections of this Agreement shall survive its expiration or
termination: 3.c-i, the indemnification portion of Section 5.a., Sections 5.b-c, and
Sections 7-10.

IN WITNESS WHEREOF, the undersigned have executed this agreement as of the date first written
above.

	 	 	 	 	 
	 

 

/s/ Steven J. Bilodeau

	 	

  
	 	

STANDARD MICROSYSTEMS CORPORATION

By: /s/ Timothy P. Craig
	 

	 	 	 	 
	 
	 	 	 	 
	Steven J. Bilodeau

Date: March 21, 2007

	 	 	 	Timothy P. Craig, Chairman of the Compensation

Committee of the Board of Directors

Dated: March 20, 2007EX-10.15

Exhibit 10.15

PURCHASE AND SALE AGREEMENT

This Purchase and Sale Agreement (this “Agreement”) is entered into by and between FMC
TECHNOLOGIES, INC., a Delaware corporation (“Seller”), and HOUSTON 1031, LIMITED
PARTNERSHIP, an Illinois limited partnership (“Purchaser”).

In consideration of the mutual covenants set forth herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

	1.	 	Sale and Purchase. Seller shall sell, convey, and assign to Purchaser, and Purchaser
shall purchase and accept from Seller, for the Purchase Price (hereinafter defined) and on and
subject to the terms and conditions herein set forth, the following:

	 	1.	 	Approximately 38.199 acres of land located in Houston, Harris County, Texas,
as described on Exhibit A attached hereto and made a part hereof, together
with all rights and interests appurtenant thereto, including all of Seller’s right,
title, and interest in and to adjacent streets, alleys, rights-of-way, and any
adjacent strips and gores of real estate (the “Land”); all buildings,
structures and improvements located on the Land (the “Improvements”); all
warranties and permits, if any, in existence with regard to the Land and Improvements
(the “Warranties and Permits”) and all rights, titles, and interests
appurtenant to the Land and Improvements excluding all maintenance contracts, service
agreements Storm Water Permit TDES Permit No. 02611 and that certain Tax Abatement
Agreement For Real Property Located in the FMC Tubing Hangar Reinvestment Zone
effective as of January 1, 2007 between Tenant and Harris County.

	 	2.	 	all equipment, machinery and fixtures owned by Seller permanently attached to
the Improvements and used exclusively in the operations of the Land and Improvements
(such as heating, ventilating and air conditioning systems, elevators, fire alarm
systems and similar building fixtures, but specifically excluding all equipment,
furniture and personal property owned by Seller which is used in the operation of
Seller’s business and which is not necessary to the operations of the Land or
Improvements (the “Personalty”);

The Land, Improvements and Personalty are herein collectively called the
“Property.”

	2.	 	Earnest Money. Concurrently with the execution of this Agreement by Purchaser and
Seller, as a condition precedent to Seller’s obligations hereunder, Purchaser shall deliver to
Chicago Title Insurance Company, Chicago Commercial Center, attention Nancy Castro (the
“Escrow Agent”), at the address for notice as hereinafter set forth, by wire transfer
of immediately available funds, a deposit in the amount of $1,000,000.00 (including any and
all interest earned thereon, collectively the “Earnest Money”) which the Escrow Agent
shall, if directed to so by Purchaser, immediately deposit into an interest-bearing account in
a national bank. Any interest earned on the Earnest Money shall become a part of the Earnest
Money and reported under Purchaser’s federal tax identification number. In the event this
Agreement is closed, the Earnest Money shall be applied to the Purchase Price at Closing. In
the event this Contract is not closed, then the Escrow Agent shall disburse the Earnest Money
in the applicable manner provided for in Section 11 below. In the event the Earnest Money is
not timely deposited by Purchaser then Seller shall have the option, which it may exercise at
any time prior to Purchaser’s deposit of the Earnest Money, to terminate this Agreement,
following which neither party will have any liability or obligation to the other.

	3.	 	Purchase Price. The price for which Seller shall sell, convey, and assign the
Property to Purchaser, and which Purchaser shall pay to Seller, is SIXTY MILLION THREE HUNDRED
THIRTY THOUSAND AND NO/100 DOLLARS ($60,330,000.00) (the “Purchase Price”). The
Purchase Price, subject to the adjustments and prorations provided herein, shall be paid by
Purchaser to Seller through escrow on the Closing Date by wire transfer of immediately
available funds. If the Earnest Money has not previously been delivered to Seller by the
Escrow Agent, simultaneously with the delivery of the Purchase Price to Seller, the Escrow
Agent shall deliver the Earnest Money to Seller and Purchaser shall receive a credit against
the Purchase Price in the amount of the Earnest Money so delivered to Seller.

	4.	 	Delivery of Information.

	 	1.	 	Due Diligence Materials. Purchaser acknowledges that Seller has
delivered or caused to be delivered to, or made available to Purchaser at the
Property, the information identified on Schedule 4.a. Seller does not
represent or warrant the accuracy or completeness of any of the items listed on
Schedule 4.a.; however, Seller has no current actual knowledge that any of
such items are inaccurate or incomplete in any material respect.

	 	2.	 	Title Commitment. Purchaser acknowledges that it has heretofore
received from Partners Title Company, as agent for Chicago Title Insurance Company
(the “Title Company”) a Commitment for Title Insurance (the “Title
Commitment”) for a Texas standard form Owner’s Policy of Title Insurance
committing to insure title to the Property in the amount of the Purchase Price and
setting forth the status of the title of the Land and Improvements and showing all
liens, claims, encumbrances, easements, rights-of-way, encroachments, reservations,
restrictions, and all other matters of record affecting the Land or Improvements,
together with true, complete, and, to the extent available from the public records,
legible copies of all documents referred to in the Title Commitment (the “Title
Commitment Documents”) The Title Commitment is attached hereto as Schedule
4.b. The exception to Seller’s title which are set forth on Schedule B to the
Title Commitment are herein called “Permitted Encumbrances” and are approved
by Purchaser.

	 	3.	 	Survey. Purchaser acknowledges that it has hereto received a survey
of the Land prepared by Weisser Engineering Co. and dated November 8, 2006, last
updated December 27, 2006 (the “Survey”). Purchaser acknowledges that the
Survey is acceptable to Purchaser for all purposes.

	5.	 	Condition of Property.

	 	1.	 	Right of Inspection. Purchaser acknowledges that it and its
representatives have heretofore been afforded the right and opportunity to conduct all
inspections of the Property which Purchaser desires to conduct.

	 	2.	 	Condition of Property. Purchaser acknowledges that the condition of
the Property is acceptable to Purchaser, and EXCEPT AS SPECIFICALLY SET FORTH IN THIS
AGREEMENT, PURCHASER, ACKNOWLEDGES THAT PURCHASER IS PURCHASING THE PROPERTY IN
“AS-IS, WHERE-IS” CONDITION “WITH ALL FAULTS” AS OF THE CLOSING AND SPECIFICALLY AND
EXPRESSLY WITHOUT ANY WARRANTIES, REPRESENTATIONS OR GUARANTEES, EITHER EXPRESS OR
IMPLIED EXCEPT AS STATED IN THIS AGREEMENT, AS TO (I) THE PROPERTY’S CONDITION,
FITNESS FOR ANY PARTICULAR PURPOSES, OR MERCHANTABILITY, (II) THE STRUCTURAL INTEGRITY
OF THE IMPROVEMENTS, (III) THE ACCURACY OR COMPLETENESS OF ANY OF THE INFORMATION,
DATA, MATERIALS OR CONCLUSIONS CONTAINED IN ANY INFORMATION PROVIDED PURCHASER, OR
(IV) ANY OTHER WARRANTY OF ANY KIND, NATURE, OR TYPE WHATSOEVER FROM SELLER OR ANY
OTHER PARTY ON BEHALF OF SELLER. PURCHASER SHALL, AT ITS SOLE COST AND EXPENSE,
CONDUCT AND RELY EXCLUSIVELY UPON ITS OWN INDEPENDENT INVESTIGATION IN THE EVALUATION
OF THE PROPERTY.

	 	3.	 	Conditions Precedent. At the option of Purchaser, the obligations of
Purchaser under this Agreement are contingent and conditional upon any one or more of
the following, the failure of any of which shall, at the request of Purchaser and
after the return to Purchaser of the Earnest Money, render this Agreement null and
void:

	 	1.	 	Representations and Warranties. Each and every
representation and warranty of Seller is true, correct and complete in all
material respects as of Closing.

	 	2.	 	Performance of Obligations. As of Closing, Seller
shall have performed and satisfied, in all material respects, each and every
obligation, term and condition to be performed and satisfied by Seller under
this Agreement.

	 	3.	 	Title. The Title Company shall be irrevocably
committed (subject to the conveyance of the Property and the payment of the
title insurance premiums) to deliver an Owner’s Policy of Title Insurance
insuring fee simple to the Land in the form and condition required by this
Agreement and subject to no exceptions other than the Permitted Encumbrances.

	 	4.	 	Payments. Seller shall have provided evidence that
all real estate taxes and assessments that are due and payable as of the
Closing have been paid.

	 	5.	 	Environmental Issues: Seller and Purchaser shall
have entered into a Post-Closing Agreement in the form of Exhibit I
attached hereto and made a part hereof (the “Post-Closing Agreement”)
regarding certain environmental issues present at the Property.

	 	6.	 	Insurance: Seller shall have submitted an insurance
certificate in the form attached hereto as Exhibit J (the
“Insurance Certificate”) evidencing the coverages required in the
Lease (as defined herein).

	 	7.	 	Interest Rate Buy-Down and Closing Credit. At
Closing, Seller shall give Purchaser a credit on the Closing Statement (as
defined below) in an amount equal to the cost of “buying-down” the interest
rate on Purchaser’s loan to 5.60%, such credit not to exceed Eight Hundred
Sixty Thousand Dollars ($860,000.00).

	6.	 	Representations, Warranties, and Covenants; Condition of Property.

	 	1.	 	Seller’s Representations and Warranties. Seller hereby represents and
warrants to Purchaser that the following are true, correct and complete:

	 	1.	 	Existence. Seller is a corporation duly organized
and validly existing in the State of Delaware and has the power to hold and
convey the Property.

	 	2.	 	Due Authority. Seller has all requisite corporate
power and authority to execute and deliver this Agreement and to carry out its
obligation hereunder and the transactions contemplated hereby. This Agreement
has been, and the documents contemplated hereby will be, duly executed and
delivered by Seller and constitute the Seller’s legal, valid and binding
obligation enforceable against Seller in accordance with its terms. The
consummation by Seller of the sale of the Property is not in violation of or
in conflict with nor does it constitute a default under any term or provision
of the organizational documents of Seller, or any of the terms of any
agreement or instrument to which Seller is or may be bound.

	 	3.	 	No Other Agreements. Seller has not entered into any
agreement to lease, sell, mortgage or otherwise encumber or dispose of its
interest in the Property or any part thereof which would be binding on
Purchaser following the Closing, except for the Lease (hereinafter defined).

	 	4.	 	No Other Contracts. Schedule 6.a. attached hereto is
a complete list of all management, service, supply and maintenance agreements,
equipment leases, and all other contracts and agreements with respect to or
affecting the Property as of the date of this Contract (herein collectively
referred to as the “Service Contracts”).

	 	5.	 	Environmental. Except as specifically disclosed in
the reports Seller has provided to Purchaser hereunder, (A) to Seller’s
current actual knowledge, during Seller’s ownership of the Property and at all
times prior thereto (i) no Hazardous Materials (as defined below) have been
located on the Property in violation of any Environmental Law or have been
released into the environment or discharged, placed or disposed of, at, on or
under the Property in violation of any Environmental Law; (ii) no underground
storage tanks are or have been located on the Property; and (iii) the Property
has never been used as a dump for waste material; and (B) to Seller’s current
actual knowledge, the Property complies with all applicable Environmental
Laws. As used herein, a “Hazardous Material’’ means any hazardous,
toxic or dangerous waste, substance or material, as defined for purposes of
the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended, or any other federal, state or local law, ordinance, rule or
regulation, applicable to the Property, and establishing liability standards
or required action as to reporting, discharge, spillage, storage, uncontrolled
loss, seepage, filtration, disposal, removal, use or existence of a hazardous,
toxic or dangerous waste, substance or material, including without limitation
petroleum hydrocarbon, including crude oil or any fraction thereof and all
petroleum products, PCBs, lead, friable asbestos, flammable explosives,
 infectious materials, or radioactive materials. The term “Environmental
Law” shall mean all statutes specifically described in the foregoing
sentence and all federal, state and local environmental health and safety
statutes, ordinances, codes, rule, regulations, orders and decrees regulating,
relating to or imposing liability or standards concerning or in connection
with Hazardous Materials.

	 	6.	 	There is not now pending nor to Seller’s current actual
knowledge has there been threatened, any action, suit or proceeding, including
without limitation any condemnation action, before or by any federal or state
court, commission, regulatory body, administrative agency or other
governmental body, domestic or foreign (i) against or affecting the Property;
and/or (ii) against or affecting the Seller wherein an unfavorable ruling,
decision or finding, may reasonably be expected to have a material adverse
effect on the business or prospects of or on the condition or operations of
the Property or the Seller, or would interfere with Seller’s ability to
consummate the transactions by this Contract, including without limitation the
Lease.

	 	7.	 	Seller is not a “foreign person” as defined by the Internal
Revenue Code (“IRC”), Section 1445. Seller will execute and deliver to
Purchaser at Closing an affidavit or certification in compliance with IRC
Section 1445.

	 	8.	 	To Seller’s current actual knowledge, the insurance carried
by Seller on the Property is sufficient to repair the Property to its former
condition in the event of a casualty less any deductible.

	 	9.	 	To Seller’s current actual knowledge, there are no pending or
threatened special assessments applicable to the Property.

	 	10.	 	There are no management, leasing and/or brokerage agreements
that will be binding upon Purchaser and/or the Property after Closing and
there are no fees or commissions due under any such agreements except those
that will be fully paid by Seller on or before Closing.

	 	11.	 	Seller has received no written notice of any material
violation of any building, fire or health code or other statute applicable to
the Property.

The representations and warranties of Seller set forth above are made as of
the date of this Agreement and will be remade as of the Closing. In the event that
the person signing this Agreement on behalf of Seller discovers a breach or change
with respect to any of the representations or warranties of Seller set forth
herein, Seller shall send notice to Purchaser advising Purchaser of any such breach
or change and the unless waived by Purchaser, such breach or change shall be
considered to be a default by Seller hereunder. Purchaser’s right to assert the
existence, at Closing, of a breach of the foregoing representations and warranties
of Seller set forth in this Agreement shall survive the Closing for a period of two
years; however, if any of such representations or warranties were breached as of
Closing but are cured by Seller during the first two (2) years of the term of the
Lease, then Purchaser shall not be entitled to assert any claims against Seller for
such breach.

Wherever the terms “Seller’s current actual knowledge,” “Seller’s knowledge,”
or “to the best of Seller’s knowledge” are used in this Agreement such terms shall
mean the actual, but not constructive or imputed knowledge, but with due inquiry,
possessed by Bob Suttles, the facilities manager for the Property. Seller
represents and warrants to Purchaser that no other person affiliated with Seller
has knowledge superior to Bob Suttles regarding the Property.

	 	2.	 	Purchaser’s Representations and Warranties. Purchaser hereby
represents and warrants to Seller that the following are true, correct and complete.

	 	1.	 	Good Standing. If Purchaser is a corporation,
Purchaser is duly organized, validly existing and in good standing in the
state of its organization.

	 	2.	 	Due Authority. Purchaser has all requisite power and
authority to execute and deliver this Agreement and to carry out its
obligation hereunder and the transactions contemplated hereby. This Agreement
has been, and the documents contemplated hereby will be, duly executed and
delivered by Purchaser and constitute the Purchaser’s legal, valid and binding
obligation enforceable against Purchaser in accordance with its terms. The
consummation by Purchaser of the transaction contemplated by this Agreement is
not in violation of or in conflict with nor does it constitute a default under
any term or provision of the organizational documents of Purchaser, or any of
the terms of any agreement or instrument to which Purchaser is or may be
bound, or of any provision of any applicable law, ordinance, rule or
regulation of any governmental authority or of any provision of any applicable
order, judgment or decree of any court, arbitrator or governmental authority.

	 	3.	 	Covenants of Seller.

	 	1.	 	Operation of the Property. Seller agrees prior to
the Closing to continue to operate and manage the Property in substantially
the same manner as the Property was operated and managed by Seller prior to
the Effective Date (hereinafter defined).

	 	2.	 	Service Contracts. Without Purchaser’s prior written
consent, Seller agrees not to enter into any management, service, supply and
maintenance agreements, equipment leases, and all other contracts and
agreements with respect to or affecting the Property prior to the Closing
which shall survive the expiration of the term of the Lease, unless (i) same
will be solely Seller’s obligation as the tenant under the Lease or (ii) same
are terminable upon thirty (30) days’ prior written notice without penalty or
termination charge.

	 	3.	 	Insurance Policies. Seller shall, at its own
expense, keep and maintain, or cause to be kept and maintained, in full force
and effect through the Closing, a policy or policies of builder’s risk, all
risk and general liability insurance covering the Property, and the personalty
and equipment located from time to time on the Property, against loss or
damage by fire, vandalism, malicious mischief, lightning, windstorm and other
insurable perils in amounts not less than those in force as of the date
hereof.

	7.	 	Closing. The closing (the “Closing”) of the sale of the Property by Seller to
Purchaser shall occur on or before fifteen days from the Effective Date (the “Closing
Date”), and same shall be conducted through the offices of the Escrow Agent which shall
coordinate the Closing with the Title Company (although neither party shall be obligated to be
present at the Closing as long as all items required to be delivered by such party at Closing
are timely delivered to the Escrow Agent or Title Company). At the Closing, the following
shall occur prior to 12:00 noon, Central Time, on the Closing Date:

	 	1.	 	Seller to Deliver. Seller, at its expense, shall deliver or cause to
be delivered to Purchaser the following:

	 	1.	 	A recordable Special Warranty Deed in the form of Exhibit
C fully executed and acknowledged by Seller, conveying the Land and
Improvements to Purchaser, subject only to the Permitted Encumbrances;

	 	2.	 	A bill of sale (the “Bill of Sale”) in the form of
Exhibit D, fully executed and acknowledged by Seller, assigning,
conveying, and transferring to Purchaser all of Seller’s right, title and
interest in and to the Personalty, subject only to the Permitted Encumbrances
and containing a warranty by Seller of Seller’s title as to matters done by,
through or under Seller and a warranty against any liens, security interests
and/or encumbrances;

	 	3.	 	Such affidavits as may be reasonably required by the Title
Company, including, without limitation, mechanics’ liens, parties in
possession and gap affidavits;

	 	4.	 	Evidence reasonably satisfactory to the Title Company that
the persons executing and delivering the Closing documents on behalf of Seller
have full right, power and authority to do so;

	 	5.	 	A Certificate in the form of Exhibit E meeting the
requirements of Section 1445 of the Internal Revenue Code of 1986, executed
and sworn to by Seller;

	 	6.	 	Seller’s originally executed counterpart of a master lease
(the “Lease”) in the form attached hereto as Exhibit B and
made a part hereof, pursuant to which Seller will master lease the Property
from Purchaser for the term described in the Lease;

	 	7.	 	Seller’s originally executed and acknowledged counterpart of
a Memorandum of Lease (the “Memorandum”) in the form attached hereto
as Exhibit F and made a part hereof, pursuant to which Seller and
Purchaser will record notice of the existence of the Lease in the Official
Public Records of Real Property of Harris County, Texas;

	 	8.	 	Seller’s originally executed Assignment of Warranties and
Permits in the form attached hereto as Exhibit G pursuant to which
Seller will assign the Warranties and Permits to Purchaser;

	 	9.	 	A reliance letters from Conestoga-rovers & Associates, the
preparer of the environmental report listed in item 7 of Schedule 4.a,
authorizing Seller to rely on the matters set forth in such environmental
report as of the date of such report;

	 	10.	 	Provided Purchaser is then financing the acquisition of the
Property, Seller’s originally executed and acknowledged counterpart of a
Subordination, Attornment and Non-Disturbance Agreement (the “SNDA”)
for the benefit of Purchaser’s lender (the “Lender”) in the form
attached as Exhibit B to the Lease;

	 	11.	 	Seller’s originally executed estoppel certificate, for the
benefit of Lender, in the form attached hereto as Exhibit H;

	 	12.	 	Seller’s originally executed counterparts of the Post-Closing
Agreement;

	 	13.	 	Seller’s originally executed counterparts of an Escrow
Agreement (herein so called) in the form attached hereto as Exhibit K
which pertains to the TI Allowance which is defined and provided for in the
Lease;

	 	14.	 	The Insurance Certificate;

	 	15.	 	Seller’s originally executed counterpart of a settlement
statement (the “Closing Statement”) reflecting the adjustments to the
Purchase Price as a result of Closing prorations, the allocation of Closing
expenses and the distributions of such amounts;

	 	16.	 	An updated certificate of Seller’s representations and
warranties as set forth in Section 6.a;

	 	17.	 	An Owner’s Policy of Title Insurance (the “Title
Policy”) issued by the Title Company and an insured closing letter from
the Escrow Agent, each issued in the form promulgated for mandatory use in the
State of Texas, which Title Policy shall be in the amount of the Purchase
Price and subject to no exceptions other than the Permitted Encumbrances.

	 	2.	 	Purchaser to Deliver. Purchaser, at its expense, shall deliver or
cause to be delivered to Seller the following:

	 	1.	 	Funds available for immediate credit in Seller’s accounts, in
the amount of the Purchase Price as specified in Section 3, subject to credit
for the Earnest Money;

	 	2.	 	Funds available for immediate credit in the account
established by the escrow agent under the Escrow Agreement to fund the TI
Allowance as provided for in the Escrow Agreement;

	 	3.	 	Purchaser’s executed counterparts of the Escrow Agreement;

	 	4.	 	Purchaser’s executed counterparts of the Post-Closing
Agreement;

	 	5.	 	Evidence satisfactory to Seller that the person executing the
Closing documents on behalf of Purchaser (to the extent applicable) has full
right, power, and authority to do so;

	 	6.	 	All documents reasonably required by the Title Company to
consummate the Closing;

	 	7.	 	Purchaser’s originally executed counterpart of the Lease;

	 	8.	 	Purchaser’s originally executed and acknowledged counterpart
of the Memorandum;

	 	9.	 	Purchaser’s and Lender’s originally executed and acknowledged
counterpart of the SNDA; and

	 	10.	 	Purchaser’s originally executed counterpart of the Closing
Statement.

	 	3.	 	Expenses of Closing. Seller shall pay the basic premium for the Title
Policy (the “Owner’s Policy”). Purchaser shall pay for all title endorsements, and
any policy required by Purchaser’s lender. Seller and Purchaser shall each pay
one-half (1/2) of any escrow closing charges. Seller shall pay for the Survey.
Purchaser shall pay the cost to record the Deeds. Seller shall pay the costs to
record any title clearance documents. Purchaser and Seller shall respectively pay
such other costs in connection with the Closing as is customary in the county in which
the Property is located.

	 	4.	 	Prorations. Inasmuch as Seller will enter into the Lease pursuant to
which it will lease the Property on an absolutely net basis with Seller continuing to
be obligated to pay all taxes, charges and other expenses of the Property, no such
taxes, charges or other expenses shall be prorated at Closing. Seller further
acknowledges that Seller is solely liable for all expenses relating to the Property
for periods prior to Closing. Notwithstanding the foregoing, Purchaser shall be
entitled to the credit described in Section 5(c)(vii) above.

	8.	 	Commissions. Purchaser and Seller each acknowledge and agree that C.B. Richard
Ellis, Inc. (“Seller’s Broker”) has represented the Seller in this transaction.
Purchaser represents and warrants to Seller that Purchaser has not been represented by any
broker or real estate agent in this transaction. Seller’s Broker shall be paid a real estate
commission by Seller, in cash at Closing, pursuant to the terms of separate written commission
agreements between Seller and Seller’s Broker. If Closing and funding do not occur for any
reason, no commission shall be earned, due or payable. Each party hereby agrees to indemnify
and hold the other party hereto harmless from and against any and all claims, demands, causes
of action, loss, costs and expenses (including reasonable attorneys’ fees and disbursements,
as incurred) or other liability arising from or pertaining to any brokerage commissions, fees,
or other compensation, which may be due to any other brokers or persons claiming to have dealt
with such party in connection with this transaction. The indemnities in this paragraph shall
survive Closing.

	9.	 	Destruction, Damage, or Taking Before Closing. If, before Closing, all or any part
of the Land, Improvements or Personalty are destroyed or damaged, or become subject to
condemnation or eminent domain proceedings (a “material damage or taking”), then Seller shall
promptly notify Purchaser thereof, and either Seller or Purchaser may elect to terminate this
Agreement by delivering written notice thereof to the other. If this Agreement is terminated,
except for obligations of Purchaser which survive termination of this Agreement, the parties
shall have no further obligations hereunder. If neither part elects to terminate this
Agreement, Seller shall, at its sole cost and expense but having full entitlement to use all
insurance proceeds or condemnation awards payable as a result of such damage or taking,
restore the Property to substantially the same condition in which it existed prior to
occurrence of such casualty or condemnation and the Closing shall be postponed if necessary to
complete such restoration.

	10.	 	Termination and Remedies.

	 	1.	 	If Purchaser defaults under this Agreement and such default continues ten
days after written notice thereof is given by Seller to Purchaser (except for a
default to purchase the Property at Closing after Seller has fulfilled all of its
obligations hereunder, in which case no notice or cure is required), then Seller, as
its sole remedy, may terminate this Agreement by notifying Purchaser thereof, in which
event the Earnest Money shall be paid to Seller as liquidated damages, whereupon,
except for obligations of Purchaser which survive termination of this Agreement,
neither Purchaser nor Seller shall have any further rights or obligations hereunder.
The provision for payment of liquidated damages has been included because, in the
event of a breach by Purchaser, the actual damages to be incurred by Seller can
reasonably expected to approximate the amount of liquidated damages called for herein
and because the actual amount of such damages would be difficult if not impossible to
measure accurately.

	 	2.	 	If Purchaser terminates this Agreement pursuant to Section 5, Section 6,
Section 9 or Section 10.c., then the Escrow Agent shall return the Earnest Money and
all interest earned thereon to Purchaser, whereupon neither party hereto shall have
any further rights or obligations hereunder, except for those which survive the
termination of this Agreement.

	 	3.	 	If Seller defaults in its obligations hereunder and such default continues
ten days after written notice thereof is given by Purchaser to Seller (except for a
default to convey the Property at Closing in accordance with the terms hereof after
Purchaser has filled all of its obligations hereunder, in which case no notice or cure
is required), then Purchaser may, as its option either: (i) terminate this Agreement
by written notice to Seller, and receive a return of the Earnest Money and all
interest earned thereon and thereafter neither party hereto shall have any further
rights or obligations hereunder, except for those which survive the termination of
this Agreement; or (ii) enforce specific performance of the obligations of Seller
hereunder; provided, however, notwithstanding the foregoing to the contrary, in the
event the remedy of specific performance is not available to Purchaser due to Seller
having conveyed the Property to another party, Seller shall pay to Purchaser the sum
of Five Hundred Thousand and No/100 Dollars ($500,000.00) as liquidated damages and
the parties agree that this is a reasonable sum considering all of the circumstances
existing on the date hereof, including the relationship of the sum to the range of
harm to Purchaser that reasonably could be anticipated, and the anticipation that
proving actual damages would be costly, impractical and extremely difficult.

	11.	 	Miscellaneous.

	 	1.	 	Notices. All notices provided or permitted to be given under this
Agreement must be in writing and may be served by depositing same in the United States
mail, addressed to the party to be notified, postage prepaid and registered or
certified with return receipt requested; by delivering the same to such party by
recognized delivery service; by nationally recognized overnight delivery service or by
facsimile copy transmission with confirmation of receipt and a copy by one of the
foregoing methods. Notice given in accordance herewith shall be effective (i) three
business days after deposit in the United States mail as set forth above; (ii) upon
delivery; (iii) one business day after deliver to a recognized overnight delivery
service; or (iv) upon receipt of confirmation of facsimile transmission. For purposes
of notice, the addresses of the parties shall be as follows:

	 	 	 	If to Seller: FMC Technologies, Inc.

1803 Gears Road

Houston, Texas 77067

Attention: Treasurer

Telecopier No. (281) 405-4929

Telephone No. (281) 591-4407

and

	 	 	 
	FMC Technologies, Inc.

200 E. Randolph Drive

Chicago, Illinois 60601

Attention: Joseph Meyer

	 	

	 
	 	 
	Telecopier No. (312) 952-8436

	 
	 	 
	Telephone No. (312) 861-6146

With a copies to:

	 	

C.B. Richard Ellis, Inc.

700 Louisiana

Suite 2700

Houston, Texas 77002

Attention: Sanford W. Criner, Jr.

Telephone No. (713) 881-0900

Facsimile No. (713) 881-0996

and

J. Robert Fisher

	 	 	 	 	 
	Winstead PC
919 Milam, Suite 2400
Houston, Texas 77002
	 	 	 	 
	Telecopier No. (713) 650-2707

	Telephone No. (713) 650-2400

	If to Purchaser:
	 	c/o Inland Real Estate Acquisitions, Inc.
	2901 Butterfield Road
Oak Brook, Illinois 60523
	 	 	 	 
	Attention: G. Joseph Cosenza

	Telephone No:
	 	 	(630) 218-4948	 
	 
	 	 	 	 

	 	 	 
	Facsimile No: (630) 218-4935

	 
	 	 
	With a copy to:

2901 Butterfield Road

Oak Brook, Illinois 60523

Attention: General Counsel

Telephone No:

	 	The Inland Real Estate Group, Inc.

(630) 218-4900
	 

	 	

	 	 	 
	Facsimile No: (630) 645-2084

If to Title Company:

	 	

Partners Title Company

	 	 	 
	712 Main Street

Suite 2000E

Houston, Texas 77002

Attention: Karen Highfield

Telephone No: (713) 229-8484

Facsimile No: (713) 229-0004

If to Escrow Agent:

	 	

Chicago Title Insurance Company

171 N. Clark Street, Division 2, 3rd Floor

Chicago, Illinois 60601

Attention: Nancy Castro/Tom Meier

Telephone No: (312) 223-3909

Facsimile No: (312) 223-3409

Email: castrona@ctt.com

Either party hereto may change its address for notice by giving three days
prior written notice thereof to the other party. Notices may be given by the
above-named counsel to a party.

	 	2.	 	Assigns, Beneficiaries. Except as hereinafter specified, this
Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective heirs, legal representatives, successors and assigns. This Agreement
is for the sole benefit of Seller and Purchaser, and no third party is intended to be
a beneficiary of this Agreement. Seller shall not have the right to transfer or
assign its rights under this Agreement to any other party without the express written
consent of Purchaser, to be granted or withheld in Purchaser’s sole discretion.
Purchaser shall not have the right to transfer or assign its rights under this
Agreement to any other party without the express written consent of Seller to be
withheld or granted in Seller’s sole discretion, except as set forth in the
immediately following sentence. Notwithstanding the foregoing, Purchaser shall have
the right to assign this Agreement and the rights of Purchaser hereunder, in whole or
in part, to any entity or entities formed by or at the direction of Purchaser for such
purpose without the consent of Seller. In the event of any such assignment, Purchaser
shall promptly furnish to Seller an executed copy of the assignment in which the
assignee assumes all of the rights and obligations of Purchaser hereunder. No consent
given by Seller to any transfer or assignment of Purchaser’s rights or obligations
hereunder shall be construed as a consent to any other transfer or assignment of
Purchaser’s rights or obligations hereunder. No transfer or assignment in violation
of the provisions hereof shall be valid or enforceable.

	 	3.	 	Limitation on Liability. The obligations and liabilities of Seller
under this Agreement shall not constitute personal obligations of the officers,
directors, employees, representatives, stockholders or other principals or
representatives of Seller.

	 	4.	 	Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State of Texas.

	 	5.	 	Entire Agreement. This Agreement is the entire agreement between
Seller and Purchaser concerning the sale of the Property, and no modification hereof
or subsequent agreement relative to the subject matter hereof shall be binding on
either party unless reduced to writing and signed by the party to be bound. All
Exhibits attached hereto are incorporated herein by this reference for all purposes.

	 	6.	 	OFAC.

	 	1.	 	Purchaser is not and shall not be, and, after making due
inquiry, no person or entity (“Person”) who owns a controlling interest in or
otherwise controls Purchaser (excluding Persons who hold direct or indirect
ownership interests in Purchaser if Purchaser is or is controlled by a U.S.
Publicly Traded Entity [hereinafter defined]) is or shall be, (i) listed on
the Specially Designated Nationals and Blocked Persons List (the “SDN
List”) maintained by the Office of Foreign Assets Control
(“OFAC”), Department of the Treasury, and/or on any other similar list
(“Other Lists” and, collectively with the SDN List, the
“Lists”) maintained by the OFAC pursuant to any authorizing statute,
Executive Order or regulation (collectively, “OFAC Laws and
Regulations”); or (ii) a Person (a “Designated Person”) either (A)
included within the term “designated national” as defined in the Cuban Assets
Control Regulations, 31 C.F.R. Part 515, or (B) designated under Sections
1(a), 1(b), 1(c) or 1(d) of Executive Order No. 13224, 66 Fed. Reg. 49079
(published September 25, 2001) or similarly designated under any related
enabling legislation or any other similar Executive Orders (collectively, the
“Executive Orders”). The OFAC Laws and Regulations and the Executive
Orders are collectively referred to in this Agreement as the “Anti-Terrorism
Laws”. Purchaser also shall require, and shall take reasonable measures to
ensure compliance with the requirement, that no Person who owns any other
direct interest in Purchaser is or shall be listed on any of the Lists or is
or shall be a Designated Person. This Section shall not apply to any Person
to the extent that such Person’s interest in the Purchaser is through a U.S.
Publicly-Traded Entity. As used in this Agreement, “U.S. Publicly-Traded
Entity” means a Person (other than an individual) whose securities are
listed on a national securities exchange, or quoted on an automated quotation
system, in the United States, or a wholly-owned subsidiary of such a Person.

	 	2.	 	Seller is not and shall not be, and, after making due
inquiry, no person or entity (“Person”) who owns a controlling interest in or
otherwise controls Seller (excluding Persons who hold direct or indirect
ownership interests in Seller if Seller is or is controlled by a U.S. Publicly
Traded Entity [hereinafter defined]) is or shall be, (i) listed on the
Specially Designated Nationals and Blocked Persons List (the “SDN
List”) maintained by the Office of Foreign Assets Control
(“OFAC”), Department of the Treasury, and/or on any other similar list
(“Other Lists” and, collectively with the SDN List, the
“Lists”) maintained by the OFAC pursuant to any authorizing statute,
Executive Order or regulation (collectively, “OFAC Laws and
Regulations”); or (ii) a Person (a “Designated Person”) either (A)
included within the term “designated national” as defined in the Cuban Assets
Control Regulations, 31 C.F.R. Part 515, or (B) designated under Sections
1(a), 1(b), 1(c) or 1(d) of Executive Order No. 13224, 66 Fed. Reg. 49079
(published September 25, 2001) or similarly designated under any related
enabling legislation or any other similar Executive Orders (collectively, the
“Executive Orders”). The OFAC Laws and Regulations and the Executive
Orders are collectively referred to in this Agreement as the “Anti-Terrorism
Laws”. Seller also shall require, and shall take reasonable measures to
ensure compliance with the requirement, that no Person who owns any other
direct interest in Seller is or shall be listed on any of the Lists or is or
shall be a Designated Person. This Section shall not apply to any Person to
the extent that such Person’s interest in the Seller is through a U.S.
Publicly-Traded Entity. As used in this Agreement, “U.S. Publicly-Traded
Entity” means a Person (other than an individual) whose securities are
listed on a national securities exchange, or quoted on an automated quotation
system, in the United States, or a wholly-owned subsidiary of such a Person.

	 	7.	 	Counterparts. This Agreement may be executed in multiple
counterparts, and all such executed counterparts shall constitute the same agreement.
It shall be necessary to account for only one (1) such counterpart executed by each
party hereto in proving the existence, validity or content of this Agreement.

	 	8.	 	Severability. If any provision of this Agreement is determined by a
court of competent jurisdiction to be invalid or unenforceable, the remainder of this
Agreement shall nonetheless remain in full force and effect.

	 	9.	 	Section Headings. Section headings contained in this Agreement are
for convenience only and shall not be considered in interpreting or construing this
Agreement.

	 	10.	 	Words. Within this Agreement, words of any gender shall be held and
construed to include any other gender, and words in the singular number shall be held
and construed to include the plural, unless the context otherwise requires.

	 	11.	 	Enforcement Actions. In the event it becomes necessary for either
party hereto to file a suit to enforce this Agreement or any provisions contained
herein, the party prevailing in such action shall be entitled to recover, in addition
to all other remedies or damages, reasonable attorneys’ fees and court costs,
including appellate costs, incurred in such suit

	 	12.	 	Offer and Acceptance. This Agreement constitutes an offer by the
first party to execute this Agreement to sell or purchase the Property on the terms
and conditions and for the Purchase Price stated herein. Unless sooner terminated or
withdrawn by notice in writing to the second party, this offer shall automatically
lapse and terminate at 12:00 noon, Central Standard Time on January      , 2007, unless,
prior to such time, the second party has returned to the first party a copy of this
Agreement bearing the signature of the second party. The “Effective Date” or any other
reference to the date of this Agreement shall mean the date on which this Agreement is
last signed by Seller and Purchaser, as indicated by their signatures below. If the
last party to execute this Agreement fails to complete the date of execution below
that party’s signature, the Effective Date shall be the date this fully executed
Agreement is delivered to the Title Company.

1

IN WITNESS WHEREOF, that parties hereto have duly executed this Agreement as of the date set
forth beneath their signature below.

SELLER:

FMC TECHNOLOGIES, INC.,

a Delaware corporation,

By: /s/ Jeffrey W. Carr

Name: Jeffrey W. Carr

Title: Vice President, General Counsel and Secretary

Date: March 23, 2007

PURCHASER:

HOUSTON 1031 LIMITED PARTNERSHIP,

an Illinois limited partnership

By: HOUSTON 1031 GP, L.L.C,

a Delaware limited liability company,

its general partner

By: IRC-IREX Venture, L.L.C., a Delaware limited liability company, its sole member

By: Inland Real Estate Exchange Corporation, a Delaware corporation, its manager

By:

Name:

Title:

Purchaser’s Tax ID No.

Date: March      , 2007

2

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