Document:

EX-10.4 Severance Agreement - David A. Helfand

 

EXHIBIT 10.4

April 28, 2003

VIA HAND DELIVERY

PERSONAL AND CONFIDENTIAL

Mr. David Helfand

1200 North Lake Shore Drive, #502

Chicago, IL 60610

Dear David

     This letter agreement (“Letter Agreement”) confirms our recent discussions
regarding your employment and separation of employment from EOP Operating
Limited Partnership and Equity Office Properties Trust (collectively the
“Company”). This Letter Agreement sets out the arrangements we discussed.

1. Employment and Separation from Employment

     It is understood that during the period from the date of this Letter
Agreement through April 30, 2003 (the “active employment period”) you shall
continue to carry out all of your current duties and responsibilities as well
as such transition related responsibilities as may be assigned to you. Your
current base salary, employee benefits and executive perquisites shall remain
unchanged during the active employment period.

     Provided that you remain in the employ of the Company through the active
employment period and reasonably carry out your duties and responsibilities,
your separation from employment with the Company, and your resignation as an
officer of the Company and its affiliated entities shall be effective April 30,
2003 (“Separation Date”).

     As of your Separation Date, except as otherwise provided in this Letter
Agreement, the Company’s established plans and procedures shall govern any
benefit continuation or conversion rights. Enclosed as Attachment 1, and
incorporated herein, is an Employee Benefits Summary that summarizes your
benefits upon separation assuming execution of this Letter Agreement and Waiver
and Release Agreement (“Release”) as provided in Paragraph 2 below.

2. Separation Pay and Separation Benefits

     On the condition that (i) on or within twenty-one (21) days after your
receipt of this Letter Agreement you sign, date and return to Stanley M.
Stevens in our office two (2) copies of this Letter Agreement, (ii) on or
within three (3) days after your April 30, 2003 Separation Date you sign, date
and return to Stanley M. Stevens the Release attached hereto as Attachment 2,
and incorporated herein (the date of such timely

 

 

Mr. David Helfand

April 28, 2003

Page 2

delivery, if it occurs, is herein referred to as the “Delivery Date”), and
(iii) you comply with your obligations set forth in this Letter Agreement and
Release and do not revoke the Release during the revocation period described in
Paragraph 9 of the Release, in addition to whatever unpaid salary, paid time
off and grandfathered vacation time that you are due for active service through
April 30, 2003, the Company will provide you the following separation pay and
separation benefits:

	 	(a)	 	Separation pay shall consist of a gross amount of One Million
One Hundred and Ninety-Five Thousand Six Hundred and Fifty Dollars
($1,195,650.00), consisting of the sum of one hundred four (104)
weeks of base salary ($764,400.00) and one hundred and fifty percent
(150%) of the average of your 2001 and 2002 cash bonuses ($431,250),
to be paid in equal biweekly installments over the twenty-four (24)
month period commencing as of the Effective Date (hereafter
defined). No other bonus or other payment or benefits shall be
available or payable, except as provided in this Letter Agreement.
In lieu of the foregoing installment payments, you may elect in
writing delivered to Stanley M. Stevens on or before May 9, 2003, to
have your separation pay paid in a single lump sum payment equal in
amount to the present value of the foregoing installment payments
discounted at a rate of four percent (4%) per annum. The single
lump sum payment, if so elected, shall be paid as soon as
practicable, but in no event later than fifteen (15) days following
the Effective Date.
	 
	 	(b)	 	Separation benefits shall consist of the following benefits:

	 	(i)	 	Until May 1, 2004, the Company will require you
to pay only the active employee contribution rate for your
Company-sponsored health care coverage that you may elect to
continue under the Consolidated Omnibus Budget Reconciliation
Act (“COBRA”) subject to the conditions and limitations of
such COBRA coverage. The Company shall pay the balance of the
required COBRA premium for this period. Thereafter, you will
be responsible for the full COBRA premium if you are eligible
and wish to continue your COBRA coverage.

	 	(c)	 	Effective as of the first business day following the
expiration of the revocation period in Paragraph 9 of the Release
(the “Effective Date”) and in lieu of any and all prior or future
rights to vesting under the EOPT share option grants and agreements
and restricted share awards provided to you:

	 	(i)	 	You will be deemed one hundred percent (100%)
vested in your Company share option grants and agreements
(totaling all share options) with the right to exercise such
vested Company share

 

 

Mr. David Helfand

April 28, 2003

Page 3

	 	 	 	option grants for the lesser of thirty-six (36) months from
the last day of your Consulting Period (hereafter defined) or
the term of such respective Company share option grants and
agreements; and
	 
	 	(ii)	 	The Company will provide to you, in aggregate,
shares representing your beneficial, unrestricted ownership as
to One Hundred Fifty-Seven Thousand Seven Hundred and Fifty
(157,750) Company common shares of beneficial interest, in
lieu of, and in satisfaction of, all further rights to
currently invested EOPT shares issued as restricted share
awards under the EOPT 1997 Share Option and Share Award Plan
(as amended and restated effective July 1, 1997) (“Share Award
Plan”). The foregoing shall be effected by acceleration of
the vesting of the specified number of shares which shall be
credited into your account in the Equity Office Supplemental
Retirement Savings Plan, dated effective November 1, 1997, as
amended (“SERP”). Upon transfer into the SERP, such shares
shall otherwise become and remain subject to the terms and
conditions of the SERP while maintained therein. Except as
aforesaid, any other entitlement to currently unvested
restricted share awards shall become null, void and of no
further force or effect. Such delivery of 157,750 Company
common shares shall be made as soon as practicable following
the Effective Date, but in no event later than fifteen (15)
days following the Effective Date.

     You acknowledge that the foregoing separation pay and separation benefits
are extra pay and benefits to which you are not entitled under the Company’s
established policies, plans and procedures absent your signing this Letter
Agreement and the Release. You further acknowledge and agree that the
Company’s offer and payment of such separation pay and separation benefits to
you and your signing of this Letter Agreement and the Release does not in any
way indicate that you have any viable claims against the Company or its
affiliates or that the Company or its affiliates has or admits any liability to
you whatsoever.

     The Company encourages and advises you to consult with your attorney at
your own expense prior to signing a copy of this Letter Agreement and the
Release. The terms of this Letter Agreement permit you at least twenty-one
(21) calendar days from the receipt of this Letter Agreement and the Release,
to consider signing the Letter Agreement and Release and seven (7) calendar
days after such signing to revoke the Release.

     The Company shall deduct from the separation pay, separation benefits and
other monies that this Letter Agreement, the Release or the Company’s benefit
plans provide, all legally required taxes and any monies owed the Company. In
the event that you die after the Effective Date but before receiving full
payment of separation pay

 

 

Mr. David Helfand

April 28, 2003

Page 4

under this Paragraph 2, the Company shall pay the balance of the
separation pay to your estate. Your receipt of separation pay and separation
benefits payments under this Letter Agreement will not create an employment or
agency relationship with the Company.

3. Company Property

     By or before your Separation Date, you agree to return to the Company all
files, records, documents, reports, and other business equipment, keys, credit
cards, and other physical or Company personal property you possess or control
and you further agree that you will not keep, transfer or use any copies or
excerpts of the foregoing items. Notwithstanding the preceding sentence, you
will be allowed to retain for your personal use and ownership your
Company-provided laptop computer and personal data assistant (PDA) device,
provided all Company proprietary and confidential information, as described in
Paragraph 4 below, has been removed from such equipment prior to its final
release to you.

4. Confidentiality/Nonsolicitation

     You agree from and after today to keep strictly confidential the existence
and terms of this Letter Agreement and you further agree that you will not
disclose them to any person or entity, other than to your immediate family,
your attorney, and your financial advisor, or except as the law may require.
The Company will keep strictly confidential the existence and terms of the
Letter Agreement except to its employees on a “need-to-know” basis and to its
attorneys, accountants and except as the law may require.

     You further agree that from and after today you shall not take any actions
or make any statements to the public, future employers, current, former or
future Company employees, or any other third party whatsoever that disparage or
reflect negatively on the Company and/or its affiliates, its and/or their
officers, trustees, directors, or employees. This will not preclude you from
providing truthful statements if called to testify under oath in any legal
proceeding.

     In the course of your employment with the Company, you received
proprietary and confidential information. Proprietary and confidential
information includes the Company’s unique plans and strategies, including its
business strategies; potential acquisition, merger or investment candidates;
operating procedures and programs; Equity Office manuals and training
materials; lists of prospective tenants or prospective sellers or purchasers of
real estate; lists of or information regarding customers, brokers or prospects;
offers to sell, exchange, purchase, rent or lease real estate; any appraisal or
other technical data regarding real estate; lists of real estate for purchase,
sale, rent or lease; and “material information” as defined by securities laws
and other information that the Illinois Trade Secrets Act protects. These
restrictions apply whether the information is written, electronic, or simply
personal knowledge. Thus, while you may

 

 

Mr. David Helfand

April 28, 2003

Page 5

engage in activities for other businesses, except as limited herein,
including Company competitors, and may make use of general knowledge you have
acquired in running a similar business, you must be careful not to use the
Company’s proprietary and confidential information. For this purpose,
proprietary and confidential information does not include information which is
or becomes already known to the person(s) to whom you would discuss it through
no fault of your own or to information which is in the public domain. You
agree that you will hold and maintain all such information in confidence, and
you will not use it in any manner whatsoever or disclose any such information
to any third party except (a) with the prior written consent of the Company’s
Chief Legal Counsel, or (b) as the law may require provided you furnish written
notice to the Company’s Chief Legal Counsel prior to disclosing the
information. This provision also applies to Company proprietary and
confidential information furnished to you during the Consulting Period
described in Paragraph 6 below.

     You also agree that during your employment and for a one (1) year period
following your Separation Date, without the prior express written consent of
the Company’s Chief Legal Counsel, (i) you will not directly or indirectly hire
away nor participate nor assist in the hiring away of any employee of the
Company and (ii) you will not solicit nor encourage any Company employee to
leave the employ of the Company.

     You acknowledge that the provisions of this Paragraph 4 are reasonable and
not unduly restrictive of your individual rights and you warrant that as of the
date you sign this Letter Agreement you have not breached any of the provisions
of Paragraph 4. You further acknowledge that in the event that you breach any
of the provisions of Paragraph 4, such breach will result in immediate and
irreparable harm to the business and goodwill of the Company and that damages,
if any, and remedies at law for such breach would be inadequate. The Company
shall, therefore, be entitled to apply for and receive from any court of
competent jurisdiction an injunction to restrain any violation of Paragraph 4
by you, an award of attorneys’ fees and costs associated with such action, and
such further relief as the court may deem just and proper.

5. Dispute Resolution

     Except with respect to an application by the Company or its affiliates to
a court of competent jurisdiction to enforce Paragraph 4 above, to the extent
permitted by law, the parties agree promptly, and in any event within 90 days
unless otherwise mutually agreed, to resolve any other dispute arising out of
this Letter Agreement or the Release, through binding confidential arbitration
conducted in Chicago, Illinois in accordance with the National Rules for the
Resolution of Employment Disputes of the American Arbitration Association (the
“AAA”); provided, one neutral arbitrator shall be chosen in accordance with AAA
rules to arbitrate any such dispute. The parties irrevocably consent to such
jurisdiction for purposes of said arbitration, and judgment may be entered
thereon in any state or federal court in the same manner as if the parties were
residents of the state or federal district in which said judgment is sought to
be entered.

 

 

Mr. David Helfand

April 28, 2003

Page 6

The arbitrator shall charge the reasonable attorneys’ fees, expenses and
costs of the substantially prevailing party to the other party, but in an
amount not to exceed one half of the value of the award if there is one.

6. Cooperation

     You agree during your employment and from and after your Separation Date
to make yourself available to the Company to provide reasonable cooperation and
assistance to the Company with respect to areas and matters in which you were
involved during your employment, including any threatened or actual litigation
concerning the Company (including, without limitation, attendance at out of
town proceedings for which the Company may require travel), and to provide to
the Company, if requested, information and counsel relating to the Company
business matters. Furthermore, provided that during the six (6) month period
following your Separation Date (the “Consulting Period”), you are available to
provide consulting assistance to the Company at such times and such places as
the Company reasonably requests with respect to Company business matters
specified by the Company, the Company shall pay you a lump sum cash payment in
the gross amount of One Hundred Forty Three Thousand Seven Hundred and Fifty
Dollars ($143,750.00) not later than fifteen (15) days following the six (6)
month anniversary of your Separation Date. The Company agrees to reimburse you
for the actual expenses you incur (including reasonable travel expenses) as a
result of your complying with this provision provided you submit proper
documentation of the expenses you incur as required by the Company.

7. General Matters

     You acknowledge and agree that in signing this Letter Agreement and the
Release you do not rely and have not relied on any representation or statement
by the Company or by its trustees, employees, agents, representatives, or
attorneys with regard to the subject matter, basis or effect of this Letter
Agreement and the Release.

     This Letter Agreement and the Release shall be deemed a contract made
under, and for all purposes to be governed by and construed in accordance with,
the laws of the State of Illinois, without reference to principles of conflicts
of laws, except to the extent superseded by applicable federal law. The
captions are utilized for convenience only, and do not operate to explain or
limit the provisions of this Letter Agreement.

     You acknowledge and agree that if any provision of this Letter Agreement
or the Release is found, held or deemed by the arbitration and/or a court of
competent jurisdiction to be void, unlawful or unenforceable under any
applicable statute or controlling law, the remainder of this Letter Agreement
and the Release shall continue in full force and effect.

 

 

Mr. David Helfand

April 28, 2003

Page 7

     This Letter Agreement will be binding upon and inure to the benefit of you
and your heirs, executors, successors and assigns and the Company, its
affiliates, subsidiaries, successors and assigns.

     Any notice to be given by one party hereunder to another shall be in
writing and shall be delivered personally, by recognized national overnight
courier service, or United States registered or certified mail, postage
prepaid, return receipt requested, and addressed to:

	 	 	 	 	 
	 	 	
If to the Company:
	 	Equity Office Properties Trust

Two North Riverside Plaza, Suite 2100

Chicago, Illinois 60606-270

Attn: Stanley M. Stevens — Chief Legal Counsel
	 	 	 	 	 
	 	 	
If to you:
	 	David Helfand

1200 North Lake Shore Drive, #502

Chicago, IL 60610

     The language of all parts of this Letter Agreement and the Release shall
in all cases be construed as a whole, according to its fair meaning, and not
strictly for or against either party. The provisions of this Letter Agreement
and the Release shall survive any termination of this Letter Agreement and the
Release when necessary to effect the intent and terms of this Letter Agreement
and the Release expressed herein.

     This Letter Agreement and the Release contain the entire agreement between
you and the Company with respect to the matter of your employment and
separation from employment. No modification of any provision of this Letter
Agreement or the Release shall be effective unless made in writing and signed
by you and me or the Company’s Chief Legal Counsel. You may not assign this
Letter Agreement and Release and the Letter Agreement and Release each may be
signed in multiple counterparts, each of which shall be deemed an original for
all purposes.

     Should you require further clarification of any aspect of the above
arrangements, or wish to discuss their implementation, please contact Stanley
M. Stevens or me.

     Please indicate your agreement and acceptance of these provisions by
signing and dating the enclosed two (2) copies of this Letter Agreement and,
thereafter, the Release and returning them to Stanley M. Stevens at the above
address. The Company will return to you a fully executed Letter Agreement and,
thereafter, the Release for your records. Following your acceptance, the
arrangements will be implemented and administered as described herein.

     So that there is no misunderstanding, please understand that if for any
reason Stanley M. Stevens does not receive the signed copies of this Letter
Agreement and Release from you on a timely basis as described in Paragraph 2
above, unless

 

 

Mr. David Helfand

April 28, 2003

Page 8

otherwise agreed in writing by Mr. Stevens, or if you exercise your right
to revoke the Release within seven (7) days after signing as provided therein,
the proposed separation pay and separation benefits described in this Letter
Agreement will be deemed to be withdrawn.

	 	 	 	 	 
	 	 	Sincerely yours,
	 	 	 	 	 
	 	 	EQUITY OFFICE PROPERTIES TRUST
	 	 	 	 	 
	 	 	
By	 	/s/ Lawrence J. Krema
	 	 	 	 	

	 	 	 	 	Lawrence J. Krema

Executive Vice President — Human Resources

and Communications

AGREED AND ACCEPTED:

 

/s/ David Helfand

David Helfand

 

April 28, 2003

Date

cc: Stanley M. Stevens

 

 

ATTACHMENT 1

COMPANY EMPLOYEE BENEFITS SUMMARY

     The following is a summary of your benefits. Please note that in the
event of any difference between this summary and the actual benefit plan
document or policies, the actual benefit plan documents or policies shall
control.

     All benefits end on your Separation Date. However, you have the
opportunity to continue some benefits as described below. If you have any
questions, please contact Kim Johnson in human resources at (312) 466-4293.

	 	Health Care Coverage: Upon your separation, COBRA permits you to continue your health care coverage. Shortly after you lose 

	 	 	 	
coverage under the health plan as a result of your employment separation, you
will receive a notice that explains your COBRA rights. If you
decide to elect COBRA continuation coverage, until May 1, 2004, the
Company will require you to pay only the active employee
contribution rate for your COBRA coverage rather than the full COBRA
premium. The Company shall pay the remainder of the required COBRA
premium for this period. Thereafter, you will be responsible for
the full COBRA premium if you wish to continue your COBRA coverage.
Please note, after your Separation Date, the Company will no longer
deduct your health insurance contribution from your pay. If you
elect COBRA coverage, CIGNA’s COBRA administrators will send you a
monthly bill for premium payment. You may direct any questions
concerning costs to Kasey Dillon. You will receive correspondence
regarding your COBRA rights shortly after your Separation Date.
	 

	 	401(k) Plan: If you are enrolled in the Equity Office Properties Trust
Retirement Savings Plan, you must contact The 401 (k)

	 	 	 	
Company at
(800) 777-4015. The letter and form you receive from The 401(k)
Company will detail your distribution options.
	 

	 	Life Insurance: Your life insurance ends on your Separation Date.
You may apply to the CIGNA Insurance Company for a

	 	 	 	personal life
insurance conversion policy without submitting proof of
insurability. You must apply for this policy in writing no later
than 31 days after your Separation Date. The amount of your premium
depends on your age, risk class, policy form and amount of coverage.
To obtain a personal policy conversion form, contact Diane Rohlfs
in human resources at (312) 466-3520. You may also contact CIGNA at
1-800-423-1282.
	 

	 	Long Term Disability: Long Term Disability Insurance (“LTD”) coverage ends on your Separation Date. However, your 

	 	 	 	employment
termination will not affect your right to receive benefits for a
period of disability that began while you were insured as an active
employee. The period of disability

 

 

	 	 	 	includes the benefits waiting period of one-hundred eighty (180)
continuous days of disability required before LTD benefits become
payable. You should refer to the LTD Summary Plan Description for
more information on the terms, limitations, exclusions and
deductions applicable to the LTD plan.
	 

	 	Short Term Disability: Short Term Disability Insurance (“STD”) coverage ends on your Separation Date.
	 

	 	Paid-Time Off (“PTO”) Days: The Company will reimburse you for all PTO days that you earned but did not use through your 

	 	 	 	Separation Date.
The Company will reimburse you for your unused PTO days as soon as
practicable after your Separation Date.
	 

	 	Grandfather Vacation and Grandfather Sick Days: You will receive payment for any earned but not used Grandfather Vacation 

	 	 	 	days as soon as
practicable after your Separation Date. You will not receive
payment for any earned but not used Grandfather Sick days as of your
Separation Date.
	 

	 	Supplemental Retirement and Savings Plan: The vested portion of your account  will be issued and paid to you according to your 

	 	 	 	
distribution election as soon as practicable after your Separation
Date, subject to income-tax withholding by the Company on the
distributed funds.

2

 

ATTACHMENT 2

EQUITY OFFICE PROPERTIES TRUST/

EOP OPERATING LIMITED PARTNERSHIP

WAIVER AND RELEASE AGREEMENT

     1.     In consideration for my election to receive the separation pay and
separation benefits described in the Letter Agreement dated April 17, 2003
(“Letter Agreement”), I, DAVID HELFAND, on behalf of myself and my heirs,
executors, administrators, attorneys and assigns, hereby waive, release and
forever discharge EQUITY OFFICE PROPERTIES TRUST (“EOPT”) together with EOPT’s
trustees, subsidiaries, divisions and affiliates (including, without
limitation, EOP Operating Limited Partnership) and Equity Office Management,
L.L.C. which are, together with, EOPT collectively hereinafter referred to as
the “Company”), whether direct or indirect, its and their joint ventures and
joint venturers (including each of their respective directors, trustees,
officers, employees, shareholders, partners and agents, past, present, and
future), and each of its and their respective successors and assigns
(hereinafter collectively referred to as “Releasees”), from any and all known
or unknown actions, causes of action, claims or liabilities of any kind which
have or could be asserted against the Releasees arising out of or related to my
employment with and/or separation from employment and all other positions with
the Company and/or any of the other Releasees and/or any other occurrence up to
and including the date of this Waiver and Release Agreement (“Release”),
including but not limited to:

	 	(a)	 	claims, actions, causes of action or liabilities arising
under Title VII of the Civil Rights Act, as amended, the Age
Discrimination in Employment Act, as amended (the “ADEA”), the
Employee Retirement Income Security Act, as amended, the
Rehabilitation Act, as amended, the Americans with Disabilities Act,
as amended, the Family and Medical Leave Act, as amended, the
Illinois Human Rights Act, and/or any other federal, state,
municipal, or local employment discrimination statutes or ordinances
(including, but not limited to, claims based on age, sex, attainment
of benefit plan rights, race, religion, national origin, marital
status, sexual orientation, ancestry, harassment, parental status,
handicap, disability, retaliation, and veteran status); and/or
	 
	 	(b)	 	claims, actions, causes of action or liabilities arising
under any other federal, state, municipal, or local statute, law,
ordinance or regulation; and/or
	 
	 	(c)	 	any other claim whatsoever including, but not limited to,
claims for severance pay, claims based upon breach of contract,
wrongful termination, defamation, intentional infliction of
emotional distress, tort, personal injury, invasion of privacy,
violation of public policy, negligence and/or any other common law,
statutory or other claim whatsoever arising

 

 

	 	 	 	out of or relating to my employment with and/or separation from
employment with the Company and/or any of the other Releasees,

but excluding any claims to enforce the Letter Agreement, the filing of an
administrative charge of discrimination, any claims which I may make under
state workers’ compensation or unemployment laws, claims covered by any
Indemnification Agreement from EOPT or EOP Operating Limited Partnership in my
favor (including, without limitation, claims arising under or as a result of
Article XI of the Second Amended and Restated Bylaws of Equity Office
Properties Trust) and/or any claims which by law I cannot waive.

     2.     I also agree never to sue any of the Releasees or become party to a
lawsuit on the basis of any claim of any type whatsoever arising out of or
related to the claims released above, other than a lawsuit to challenge this
Release under the ADEA.

     3.     I further acknowledge and agree that if I breach the provisions of
paragraph (2) above, then, to the fullest extent permitted by law, (a) the
Company shall be entitled to apply for and receive an injunction to restrain
any violation of paragraph (2) above, (b) the Company shall not be obligated to
continue payment of the Letter Agreement separation pay and separation benefits
to me, (c) I shall be obligated to pay to the Company its costs and expenses in
enforcing this Release and defending against such lawsuit (including court
costs, expenses and reasonable legal fees), and (d) as an alternative to (c),
at the Company’s option, I shall be obligated upon demand to repay to the
Company all but $25,000 of the Letter Agreement separation pay and separation
benefits paid to me. I further agree that the foregoing covenants in this
paragraph (3) shall not affect the validity of this Release and shall not be
deemed to be a penalty nor a forfeiture.

     4.     To the extent permitted by law, I further waive my right to any
monetary recovery should any federal, state, or local administrative agency or
any other person or entity pursue any claims on my behalf arising out of or
related to any of the claims released above.

     5.     To the extent permitted by law, I further waive, release, and discharge
Releasees from any reinstatement rights which I have or could have and I
acknowledge that I have not suffered any on the job injury for which I have not
already filed a claim.

     6.     I further agree that if I breach the Confidentiality/Nonsolicitation
provisions of the Letter Agreement, then, to the fullest extent permitted by
law, (a) the Company shall be entitled to apply for and receive an injunction
to restrain such breach, (b) the Company shall not be obligated to continue
payment of the Letter Agreement separation pay and separation benefits to me,
and (c) I shall be obligated to pay to the Company its costs and expenses in
enforcing the Confidentiality/Nonsolicitation provisions of the Letter
Agreement (including court costs, expenses and reasonable legal fees).

2

 

     7.     I also understand that the Letter Agreement separation pay and
separation benefits, which I will receive in exchange for signing the Letter
Agreement and this Release, are in addition to anything of value to which I
already am entitled.

     8.     I FURTHER UNDERSTAND THAT THIS RELEASE INCLUDES A RELEASE OF ALL KNOWN
AND UNKNOWN CLAIMS TO DATE.

     9.     I acknowledge that I have had at least twenty-one (21) calendar days
after the receipt of this Release to consider signing this Release. In
addition, I have seven (7) calendar days after signing this Release to revoke
it, in which case this Release and the Letter Agreement will be null and void.
Any such revocation must be in writing and be submitted to Stanley M. Stevens,
the Company’s Chief Legal Counsel, within such seven (7) day period. I
understand that if I sign this Release and do not revoke it within seven (7)
calendar days after signing, this Release and the Letter Agreement will become
fully effective and enforceable.

     10.     I further acknowledge and agree that I have carefully read and fully
understand all of the provisions of this Release and that I have been advised
to obtain or have obtained representation by counsel in connection with my
execution of the Letter Agreement and this Release and that my execution of the
Letter Agreement is voluntary and that I have voluntarily executed this Release
by signing below.

     11.     I acknowledge and agree that if any provision of this Release is
found, held or deemed by a court of competent jurisdiction to be void, unlawful
or unenforceable under any applicable statute or controlling law, the remainder
of this Release shall continue in full force and effect.

     12.     This Release is deemed made and entered into in the State of Illinois
without giving effect to is choice of laws provisions, and in all respects
shall be interpreted, enforced and governed under applicable federal law and in
the event reference shall be made to State law, the internal laws of the State
of Illinois.

	 	 	 
	 	 	
/s/ David Helfand
	 	 	

	 	 	
David Helfand

April 30, 2003

(Date)
	 	 	 
	 	 	
PLEASE RETURN TO:
	 	 	 
	 	 	
Stanley M. Stevens

Chief Legal Counsel

Equity Office Properties Trust

Two North Riverside Plaza, Suite 2100

Chicago, Illinois 60606

3<PAGE>

                                                                    EXHIBIT 10a1

                              FORTUNE BRANDS, INC.
                          1999 LONG-TERM INCENTIVE PLAN
                          (as amended April 29, 2003)

1.       PURPOSE OF PLAN

         The purpose of this 1999 Long-Term Incentive Plan (the "Plan") is to
aid Fortune Brands, Inc. and its Subsidiaries (the "Company") in securing and
retaining Key Employees of outstanding ability by making it possible to offer
them increased incentives, which may include a proprietary interest in the
Company, to join or continue in the service of the Company and to increase their
efforts for its welfare.

2.       DEFINITIONS

                  As used in the Plan, the following words shall have the
following meanings:

                  (a) "Award" means an award or grant made to a Participant
         pursuant to the Plan, including, without limitation, an award or grant
         of an Option, Right, Restricted Stock, Performance Award or Other
         Stock-Based Award, or any combination of the foregoing;

                  (b) "Award Agreement" means an agreement between the Company
         and a Participant that sets forth the terms, conditions and limitations
         applicable to an Award;

                  (c) "Board of Directors" means the Board of Directors of
         Fortune;

                  (d) "Committee" means the Compensation and Stock Option
         Committee of the Board of Directors;

                  (e) "Common Stock" means common stock of Fortune;

                  (f) "Exchange Act" means the Securities Exchange Act of 1934,
         as amended;

                  (g) "Fortune" means Fortune Brands, Inc.;

                  (h) "Incentive Stock Option" means a stock option to purchase
         shares of Common Stock which is intended to qualify as an incentive
         stock option as defined in Section 422 of the Internal Revenue Code;

                  (i) "Key Employee" means any person, including an officer or
         director, in the regular full-time employment of the Company who, in
         the opinion of the Committee, is or is expected to be primarily
         responsible for the management, growth or protection of some part or
         all of the business of the Company;

                  (j) "Limited Right" means a right to receive cash in lieu of
         the exercise of an Option or Right as set forth in Section 12(b);

                  (k) "Nonqualified Stock Option" means a stock option to
         purchase shares of Common Stock which is intended not to qualify as an
         incentive stock option as defined in Section 422 of the Internal
         Revenue Code;

                  (l) "Option" means an Incentive Stock Option, a Nonqualified
         Stock Option or an option granted pursuant to Section 14(a);

                  (m) "Other Stock-Based Award" means an Award pursuant to
         Section 8;

<PAGE>

                  (n) "Participant" means a person to whom one or more Awards
         have been granted that have not all been forfeited or terminated under
         the Plan;

                  (o) "Performance Period" means the period specified with
         respect to a Performance Award during which specified performance
         criteria are to be measured;

                  (p) "Performance Award" means an Award granted pursuant to
         Section 7;

                  (q) "Restricted Stock" means shares of Common Stock granted
         pursuant to Section 6 or as part of a Performance Award or an Other
         Stock-Based Award;

                  (r) "Right" means a stock appreciation right to elect to
         receive shares of Common Stock with a fair market value, at the time of
         any exercise of such stock appreciation right, equal to the amount by
         which the fair market value of all shares subject to the Option (or
         part thereof) in respect of which such stock appreciation right was
         granted exceeds the exercise price of said Option (or part thereof) or
         to receive from Fortune, in lieu of such shares, the fair market value
         in cash, or to receive a combination of such shares and cash, as
         provided in Section 5, and shall also mean a stock appreciation right
         granted pursuant to Section 14(b); and

                  (s) "Subsidiary" means any corporation, other than Fortune, in
         an unbroken chain of corporations or other entities beginning with
         Fortune if each of the corporations, or other entities other than the
         last corporation or entity in the unbroken chain owns 50% or more of
         the voting stock in one of the other corporations in such chain, except
         that with respect to Incentive Stock Options, "Subsidiary" means
         "subsidiary corporation" as defined in Section 424(f) of the Internal
         Revenue Code.

3.       ADMINISTRATION OF PLAN

         The Plan shall be administered by the Committee whose members shall be
appointed by the Board of Directors and consisting of at least three members of
the Board of Directors. The members of the Committee shall qualify to administer
the Plan for purposes of Rule 16b-3 (and any other applicable rule) promulgated
under Section 16(b) of the Exchange Act. The Committee may adopt its own rules
of procedure, and the action of a majority of the Committee, taken at a meeting,
or taken without a meeting by unanimous written consent of the members of the
Committee, shall constitute action by the Committee. The Committee shall have
the power and authority to administer, construe and interpret the Plan, to make
rules for carrying it out and to make changes in such rules.

4.       AWARDS

         The Committee may from time to time make such Awards under the Plan to
such Key Employees and in such form and having such terms, conditions and
limitations as the Committee may determine. Awards may be granted singly, in
combination or in tandem. The terms, conditions and limitations of each Award
under the Plan shall be set forth in an Award Agreement, in a form approved by
the Committee, consistent, however, with the terms of the Plan.

5.       AWARDS OF OPTIONS AND RIGHTS

                  (a)      The terms and conditions with respect to each Award
         of Options under the Plan shall be consistent with the following:

<PAGE>

                                    (i)      The Option price per share shall
                           not be less than fair market value at the time the
                           Option is granted.

                                    (ii)     Exercise of the Option shall be
                           conditioned upon the Participant named therein having
                           remained in the employ of the Company for at least
                           one year after the date of the grant of the Option;
                           provided, however, that this condition shall not be
                           applicable in the event of the death of the
                           Participant or as otherwise provided in Section
                           12(b); and provided further, that any Option that is
                           granted prior to September 1, 2001 and that is held
                           by a Participant whose principal employer is ACCO
                           World Corporation or one of its Subsidiaries shall
                           become fully and immediately exercisable on the date
                           ACCO World Corporation ceases to be a subsidiary; and
                           any Option that is granted prior to September 1, 2001
                           and that is held by a Participant whose principal
                           employer is JBB (Greater Europe) PLC or one of its
                           subsidiaries shall become fully and immediately
                           exercisable on the date JBB (Greater Europe) PLC
                           ceases to be a Subsidiary or on the date a sale or
                           other disposition of substantially all of the assets
                           of JBB (Greater Europe) PLC by Fortune or a
                           Subsidiary to an entity that is not a Subsidiary is
                           consummated. The Option shall be exercisable in whole
                           or in part from time to time during the period
                           beginning at the completion of the required
                           employment time stated in the Option and ending at
                           the expiration of ten years from the date of grant of
                           the Option, unless an earlier expiration date shall
                           be stated in the Option or the Option shall cease to
                           be exercisable pursuant to Section 5(a)(iv) or
                           because of the exercise of the Limited Right
                           pertaining thereto as provided in Section 12(b). To
                           the extent that the aggregate fair market value of
                           shares with respect to which Incentive Stock Options
                           are exercisable for the first time by any Participant
                           during any calendar year exceeds $100,000, such
                           Options shall be treated as Nonqualified Stock
                           Options. The foregoing shall be applied by taking
                           Options into account in the order in which they were
                           granted. For purposes of the foregoing, the fair
                           market value of any share shall be determined at the
                           time of the Award of the Option. In the event the
                           foregoing results in a portion of an Incentive Stock
                           Option exceeding the $100,000 limitation, only such
                           excess shall be treated as a Nonqualified Stock
                           Option.

                                    (iii)    Payment in full of the Option price
                           shall be made upon exercise of each Option and may be
                           made in cash, by the delivery of shares of Common
                           Stock with a fair market value equal to the Option
                           price, provided the Participant has held such shares
                           for a period of at least one year, or by a
                           combination of cash and such shares that have been
                           held by the Participant for a period of at least one
                           year whose fair market value together with such cash
                           shall equal the Option price. The Committee may also
                           permit Participants, either on a selective or
                           aggregate basis, simultaneously to exercise Options
                           and sell the shares of Common Stock thereby acquired
                           pursuant to a brokerage or similar arrangement,
                           approved in advance by the Committee, and use the
                           proceeds from such sale as payment of the purchase
                           price of such shares.

                                    (iv)     If a Participant's employment with
                           the Company terminates other than by reason of the
                           Participant's death, disability or retirement under a
                           retirement plan of the Company, the Participant's
                           Option shall terminate and cease to be exercisable
                           three months from the date of such termination except
                           as otherwise provided in Section 12(b). If a
                           Participant's employment with the Company terminates
                           by reason of death, disability or retirement under a
                           retirement plan of the Company, the Participant's
                           Option shall continue to be exercisable until the
                           expiration date stated in the option, provided that a
                           Nonqualified Stock Option may be exercised within one
                           year from the date of death even if later than such
                           expiration date. In the case of a Participant whose
                           principal employer is an entity in which Fortune
                           owns, directly or indirectly, an equity interest,
                           then such Participant's employment shall be deemed to
                           be terminated for purposes of this Section 5 as of
                           the date on which such principal employer ceases to
                           be an entity in which Fortune owns, directly or
                           indirectly, an equity interest; provided, however,
                           that, if ACCO World Corporation ceases to be a

<PAGE>

                           Subsidiary, each Option that is granted prior to
                           September 1, 2001 and that is held by a Participant
                           who is employed by ACCO World Corporation or one of
                           its Subsidiaries, to the extent that it is
                           exercisable on the date ACCO World Corporation ceases
                           to be a Subsidiary, shall continue to be exercisable
                           until its expiration date as set forth in Section
                           5(a)(ii); and if JBB (Greater Europe) PLC ceases to
                           be a Subsidiary, or if substantially all of the
                           assets of JBB (Greater Europe) PLC have been sold or
                           otherwise disposed of by Fortune or a Subsidiary to
                           an entity that is not a Subsidiary, then each Option
                           that is granted prior to September 1, 2001 and that
                           is held by a Participant who is employed by JBB
                           (Greater Europe) PLC or one of its subsidiaries at
                           the time of disposition shall continue to be
                           exercisable until its expiration date as set forth in
                           Section 5(a)(ii).

                                    (v)      Each Option shall contain a Limited
                           Right to receive cash in lieu of shares under the
                           circumstances set forth in Section 12(b).

                  (b)      The Committee, at the time of grant of an Option or
         at any time prior to the expiration of its term, may also grant,
         subject to the terms and conditions of the Plan, Rights in respect of
         all or part of such Option to the Participant who has been granted the
         Option, provided that at such time the Participant is a Key Employee.
         No Right shall be exercisable prior to six months from the date of
         grant, except as otherwise provided in Section 12(b).

                  (c)      The holder of an Option or Right who decides to
         exercise the Option or Right in whole or in part shall give notice to
         the Secretary of Fortune of such exercise in writing on a form approved
         by the Committee. A notice exercising a Right shall also specify the
         extent, if any, to which the Participant elects to receive cash, and
         shall be subject to the determination by the Committee as provided in
         Section 5(f). Any exercise shall be effective as of the date specified
         in the notice of exercise, but not earlier than the date the notice of
         exercise, together with, in the case of exercise of an Option, payment
         in full of the Option price, is actually received and in the hands of
         the Secretary of Fortune.

                  (d)      To the extent an Option is exercised in whole or in
         part, any Right granted in respect of such Option (or part thereof)
         shall terminate and cease to be exercisable. To the extent a Right is
         exercised in whole or in part, the Option (or part thereof) in respect
         of which such Right was granted shall terminate and cease to be
         exercisable.

                  (e)      Subject to Sections 5(b) and 14, a Right granted with
         an accompanying Option shall be exercisable only during the period in
         which the Option (or part thereof) in respect of which such Right was
         granted is exercisable.

                  (f)      The Committee shall have sole discretion to determine
         the form in which payment will be made following exercise of a Right.
         All or any part of the obligation arising out of an exercise of a Right
         may be settled

                                    (i)      by payment in shares of Common
                           Stock with a fair market value equal to the cash that
                           would otherwise be paid,

                                    (ii)     by payment in cash, or

                                    (iii)    by payment in a combination of such
                           shares and cash.

                  (g) To the extent that any Right that shall have become
         exercisable shall not have been exercised or cancelled or, by reason of
         any termination of employment, shall have become non-exercisable, it
         shall be deemed to have been exercised automatically, without any
         notice of exercise, on the last day on which its related Option is
         exercisable, provided that any conditions or limitations on its
         exercise (other than (i) notice of exercise and (ii) exercise or
         election to exercise during the period prescribed in

<PAGE>

         Section 5(e)) are satisfied and the Right shall then have value. Such
         exercise shall be deemed to specify that, subject to determination by
         the Committee as provided in Section 5(f), the holder elects to receive
         cash and that such exercise of a Right shall be effective as of the
         time of the exercise.

6.       AWARDS OF RESTRICTED STOCK

         The terms and conditions with respect to each Award of Restricted Stock
under the Plan shall be consistent with the following:

                  (a)      The provisions of Awards of Restricted Stock need not
         be the same with respect to each Participant. Each Award of Restricted
         Stock shall be subject to forfeiture as set forth in the Plan and may
         be otherwise subject to forfeiture as set forth in the provisions of
         such Award. Awards of Restricted Stock for up to 100,000 shares of
         Common Stock may be granted pursuant to the Plan.

                  (b)      Each Participant receiving an Award of Restricted
         Stock shall be issued a certificate in respect of such shares of
         Restricted Stock. Such certificate shall be registered in the name of
         such Participant and shall bear an appropriate legend referring to the
         terms, conditions and restrictions applicable to such Award. The
         Committee may require that the certificates evidencing such shares be
         held in custody by Fortune until the restrictions thereon shall have
         lapsed and that, as a condition of any Award of Restricted Stock, the
         Participant shall have delivered a stock power, endorsed in blank,
         relating to the Common Stock covered by such Award.

                  (c)      Shares of Restricted Stock shall be subject to the
         restrictions set forth in this Section 6(c).

                                    (i)      Subject to the provisions of the
                           Plan and the applicable Award Agreement, during the
                           period established by the Committee commencing on the
                           date of such Award (the "Restriction Period"), the
                           Participant shall not be permitted to sell, assign,
                           transfer, pledge or otherwise encumber such shares of
                           Restricted Stock. Within these limits, the Committee
                           may provide for the lapse of such restrictions in
                           installments and may accelerate or waive any or all
                           of such restrictions, in whole or in part, based on
                           service, performance and such other factors or
                           criteria as the Committee may determine.

                                    (ii)     Subject to Section 10(e) and except
                           as provided in this Section 6(c), the Participant
                           shall have, with respect to shares of Restricted
                           Stock issued to such Participant under the Plan, all
                           of the rights of a holder of Common Stock of Fortune,
                           including the right to vote the shares and the right
                           to receive any cash dividends. Unless otherwise
                           determined by the Committee, cash dividends shall be
                           automatically reinvested in additional shares of
                           Common Stock which shall be treated as Restricted
                           Stock under this Section 6 and dividends payable in
                           Common Stock shall be treated as additional shares of
                           Restricted Stock subject to the same restrictions and
                           other terms and conditions that apply to the shares
                           with respect to which such dividends are issued.

                                    (iii)    Except to the extent otherwise
                           provided in this Section 6(c), in Section 12(c) or
                           12(d) or in the applicable Award Agreement, upon
                           termination of a Participant's employment with the
                           Company for any reason during the Restriction Period,
                           all shares still subject to restriction shall be
                           forfeited by the Participant. Except to the extent
                           otherwise provided in the applicable Award Agreement,
                           if the Participant's employment shall terminate and
                           cease by reason of disability, retirement under a
                           retirement plan of the Company or death, the
                           Restriction Period with respect to any shares of
                           Restricted Stock then held shall expire as of the
                           date of such disability, retirement or death.

<PAGE>

                                    (iv)     Upon expiration of the Restriction
                           Period with respect to any shares of the Restricted
                           Stock without a prior forfeiture thereof, the holder
                           of such shares shall have the right to receive in
                           exchange for the certificates representing such
                           shares unlegended certificates for such shares.

7.       PERFORMANCE AWARDS

         The terms and conditions with respect to each Performance Award under
the Plan shall be consistent with the following:

                  (a) Performance Awards may be paid in cash, shares of Common
         Stock (which may, but need not, be shares of Restricted Stock pursuant
         to Section 6), or any combination thereof. The Committee shall
         determine the nature, length and starting date of the Performance
         Period for each Performance Award which shall be at least two years
         (subject to Sections 12(c) and 12(d)) and shall determine the
         performance objectives to be used in valuing Performance Awards and
         determining the extent to which such Performance Awards have been
         earned. Performance objectives may vary from Participant to Participant
         and between groups of Participants and shall be based upon revenues,
         operating income, operating company contribution, cash flow, income
         before income taxes, net income, earnings per share, economic value
         added, return on equity or assets or total return to stockholders,
         whether applicable to the Company or any relevant Subsidiary or
         business unit, or any combination thereof, as the Committee may deem
         appropriate. Performance Periods may overlap and Participants may
         participate simultaneously with respect to Performance Awards that are
         subject to different Performance Periods and different performance
         factors and criteria. The terms of Performance Awards need not be the
         same with respect to each Participant. The Committee shall determine
         for each Performance Award subject to such Performance Period the range
         of dollar values or number of shares of Common Stock (which may, but
         need not, be shares of Restricted Stock pursuant to Section 6), or
         combination thereof, to be received by the Participant at the end of
         the Performance Period if and to the extent that the relevant measures
         of performance for such Performance Awards are met. The factors must
         include a minimum performance standard below which no payment will be
         made and a maximum performance level above which no increased payment
         will be made. Performance Awards for up to 1,000,000 shares of Common
         Stock may be granted pursuant to the Plan. No Performance Awards having
         an aggregate maximum dollar value in excess of $5,000,000 or an
         aggregate maximum amount of Common Stock in excess of 500,000 shares
         shall be granted to any individual Participant.

                  (b) The Committee may adjust the performance goals and
         measurements applicable to Performance Awards to take into account
         changes in law and accounting and tax rules and to make such
         adjustments as the Committee deems necessary or appropriate to reflect
         the inclusion or exclusion of the impact of extraordinary or unusual
         items, events or circumstances, provided that no adjustment shall be
         made which would result in an increase in the compensation of any
         Participant whose compensation is subject to the limitation on
         deductibility under Section 162(m) of the Internal Revenue Code, as
         amended, or any successor provision, for the applicable year. The
         Committee also may adjust the performance goals and measurements
         applicable to Performance Awards and thereby reduce the amount to be
         received by any Participant pursuant to such Awards if and to the
         extent that the Committee deems it appropriate, provided that no such
         reduction shall be made on or after the date of a Change in Control (as
         defined in Section 12(b)(iii)).

                  (c) Except as otherwise provided in the applicable Award
         Agreement, if during a Performance Period a Participant's employment
         with the Company terminates by reason of the Participant's death,
         disability or retirement under a retirement plan of the Company, such
         Participant shall be entitled to a payment with respect to each
         outstanding Performance Award at the end of the applicable Performance
         Period based on the terms of the Award. The Committee may provide for
         an earlier payment in settlement of such Performance Award discounted
         at a reasonable interest rate and otherwise in such

<PAGE>

         amount and under such terms and conditions as the Committee deems
         appropriate. Except as otherwise provided in Section 12(c) or 12(d) or
         in the applicable Award Agreement, if during a Performance Period a
         Participant's employment with the Company terminates other than by
         reason of the Participant's death, disability or retirement under a
         retirement plan of the Company, then such Participant shall not be
         entitled to any payment with respect to the Performance Awards relating
         to such Performance Period, unless the Committee shall otherwise
         determine.

                  (d) The earned portion of a Performance Award may be paid
         currently or on a deferred basis with such interest or earnings
         equivalent as may be determined by the Committee. Payment shall be made
         in the form of cash or whole shares of Common Stock, either in a single
         payment or in annual installments, all as the Committee shall
         determine.

                  (e) If a Participant engages in detrimental activity (as
         hereinafter defined) at any time (whether before or after termination
         of employment), any Performance Award that has not been paid to such
         Participant (or is not payable as provided in Section 12(c) or 12(d))
         prior to the date such activity has been determined by the Committee to
         constitute detrimental activity shall be forfeited and shall never
         become payable. For purposes of this Section 7(e), "detrimental
         activity" shall mean willful, reckless or grossly negligent activity
         that is determined by the Committee, on a case-by-case basis, to be
         detrimental to or destructive of the business or property of Fortune or
         any Subsidiary. Any such determination of the Committee shall be
         conclusive and binding for the purposes of the Plan. Notwithstanding
         the foregoing, no Performance Award shall be forfeited or become not
         payable by virtue of Section 7(e) on or after the date of a Change in
         Control (as defined in Section 12(b)(iii)).

8.       OTHER STOCK-BASED AWARDS

         The Committee may grant other Awards under the Plan pursuant to which
shares of Common Stock (which may, but need not, be shares of Restricted Stock
pursuant to Section 6) are or may in the future be acquired, or Awards
denominated in stock units, including ones valued using measures other than
market value. Such Other Stock-Based Awards may be granted alone, in addition to
or in tandem with any Award of any type granted under the Plan and must be
consistent with the purposes of the Plan. Such other Stock-Based Awards for up
to 100,000 shares of Common Stock may be granted pursuant to the Plan.

9.       DIVIDEND EQUIVALENTS

         Any Awards (other than Awards of Options or Rights) under the Plan may,
in the discretion of the Committee, earn dividend equivalents. In respect of any
such Award which is outstanding on a dividend record date for Common Stock the
Participant may be credited with an amount equal to the cash or stock dividends
or other distributions that would have been paid on the shares of Common Stock
covered by such Award had such covered shares been issued and outstanding on
such dividend record date. The Committee shall establish such rules and
procedures governing the crediting of dividend equivalents, including the
timing, form of payment and payment contingencies of such dividend equivalents,
as it deems are appropriate or necessary.

10.      LIMITATIONS AND CONDITIONS

                  (a) The total number of shares of Common Stock that may be
         made subject to Awards under the Plan is 12,000,000 shares. Such total
         number of shares may consist, in whole or in part, of unissued shares
         or reacquired shares. Not more than 2,000,000 shares of Common Stock
         may be made subject to Awards under the Plan to any individual
         Participant, which limitation shall be applied in a manner consistent
         with the requirements of Section 162(m) of the Internal Revenue Code,
         as amended. The foregoing numbers of shares may be increased or
         decreased by the events set forth in Section 12(a). In

<PAGE>

         the event that the Company makes an acquisition or is a party to a
         merger or consolidation and Fortune assumes the options or other awards
         consistent with the purpose of this Plan of the company acquired,
         merged or consolidated which are administered pursuant to this Plan,
         shares of Common Stock subject to the assumed options or other awards
         shall not count as part of the total number of shares of Common Stock
         that may be made subject to Awards under this Plan.

                  (b) Any shares that have been made subject to an Award that
         cease to be subject to the Award (other than by reason of exercise or
         payment of the Award to the extent that it is settled in shares) shall
         again be available for award and shall not be considered as having been
         theretofore made subject to award. Any shares of Common Stock delivered
         upon exercise of an Option in payment of all or part of the Option, or
         delivered or withheld in satisfaction of withholding taxes with respect
         to an Award, shall be additional shares available for award under the
         Plan. Any shares subject to option under an Option (or part thereof)
         that is cancelled upon exercise of a Right when settled wholly or
         partially in shares shall to the extent of such settlement in shares be
         treated as if the Option itself were exercised and such shares received
         in settlement of the Right shall no longer be available for grant.

                  (c) No Awards shall be made under the Plan after December 31,
         2004, but the terms of Awards granted on or before the expiration
         thereof may extend beyond such expiration. At the time an Award is
         granted or amended or the terms or conditions of an Award are changed,
         the Committee may provide for limitations or conditions on such Award.

                  (d) No Award or portion thereof shall be transferable by the
         Participant otherwise than by will or by the laws of descent and
         distribution, except that an Option and related Right may be
         transferred by gift to any member of the holder's immediate family or
         to a trust or partnership solely for the benefit of such immediate
         family members to the extent permitted in the applicable Award
         Agreement. A Right shall never be transferred except to the transferee
         of the related Option. During the lifetime of the Participant, an
         Option or Right shall be exercisable only by the Participant unless it
         has been transferred to a member of the holder's immediate family or to
         a trust or partnership solely for the benefit of such immediate family
         members, in which case it shall be exercisable only by such transferee.
         For the purpose of this provision, a holder's "immediate family" shall
         mean the holder's spouse, children and grandchildren.

                  (e) No person who receives an Award under the Plan which
         includes shares of Common Stock or the right to acquire shares of
         Common Stock (which may include shares of Restricted Stock pursuant to
         Section 6) shall have any rights of a stockholder (i) as to shares
         under option until, after proper exercise of the Option, such shares
         have been recorded on Fortune's official stockholder records as having
         been issued or transferred, (ii) as to shares to be delivered following
         exercise of a Right until, after proper exercise of the Right and
         determination by the Committee to make payment therefor in shares, such
         shares shall have been recorded on Fortune's official stockholder
         records as having been issued or transferred, or (iii) as to shares
         included in Awards of Restricted Stock, Performance Awards or Other
         Stock-Based Awards, until such shares shall have been recorded on
         Fortune's official stockholder records as having been issued or
         transferred.

                  (f) Fortune shall not be obligated to deliver any shares until
         they have been listed (or authorized for listing upon official notice
         of issuance) upon each stock exchange upon which outstanding shares of
         such class at the time are listed nor until there has been compliance
         with such laws or regulations as Fortune may deem applicable. Fortune
         shall use its best efforts to effect such listing and compliance. No
         fractional shares shall be delivered.

                  (g) Nothing contained herein shall affect the right of the
         Company to terminate any Participant's employment at any time or for
         any reason.

<PAGE>

11.      TRANSFERS AND LEAVES OF ABSENCE

         For purposes of the Plan: (a) a transfer of a Participant's employment
without an intervening period from Fortune to a Subsidiary or another entity in
which Fortune owns, directly or indirectly, an equity interest, or vice versa,
or from one Subsidiary or another entity in which Fortune owns, directly or
indirectly, an equity interest, to another, shall not be deemed a termination of
employment, and such Participant shall be deemed to remain in the employ of the
Company, and (b) a Key Employee who is granted in writing a leave of absence
shall be deemed to have remained in the employ of the Company during such leave
of absence.

12.      STOCK ADJUSTMENTS, CHANGE IN CONTROL AND DIVESTITURES

                  (a)      In the event of any merger, consolidation, stock or
         other non-cash dividend, extraordinary cash dividend, split-up,
         spin-off, combination or exchange of shares, reorganization or
         recapitalization or change in capitalization, or any other similar
         corporate event, the Committee may make such adjustments in (i) the
         aggregate number of shares subject to the Plan and the number of shares
         that may be made subject to Awards to any individual Participant as set
         forth in Sections 7(a) and 10(a) as well as the aggregate number of
         shares that may be made subject to any type of Award, (ii) the number
         and kind of shares that are subject to any Option (including any Option
         outstanding after termination of employment) and the Option price per
         share without any change in the aggregate Option price to be paid
         therefor upon exercise of the Option, (iii) the number and kind of
         Rights granted or that may be granted under the Plan, (iv) the number
         and kind of shares of outstanding Restricted Stock, (v) the number and
         kind of shares of Common Stock covered by a Performance Award or Other
         Stock-Based Award and (vi) the number of outstanding dividend
         equivalents, as the Committee shall deem appropriate in the
         circumstances. The determination by the Committee as to the terms of
         any of the foregoing adjustments shall be conclusive and binding.

                                    (b)(i) In the event of a Change in Control
                           (as defined in Section 12(b)(iii)), then each Option
                           or Right held by a Participant that is not then
                           exercisable shall become immediately exercisable and
                           shall remain exercisable as provided in Section 5
                           notwithstanding anything to the contrary in the first
                           sentence of Section 5(a)(ii) or in Section 5(b). In
                           addition, unless the Committee otherwise determines
                           at the time of grant or at any time thereafter but
                           prior to such Change in Control, each Limited Right
                           outstanding at the time of such Change in Control
                           shall be deemed to be automatically exercised as of
                           the date of such Change in Control or as of such
                           other date during the 60-day period beginning on the
                           date of such Change in Control as the Committee may
                           determine prior to such Change in Control. In the
                           event that the Limited Right is not automatically
                           exercised, the Participant may during the 60-day
                           period beginning on the date of the Change in Control
                           (such 60-day period being herein referred to as the
                           "Limited Right Exercise Period"), in lieu of
                           exercising such Option or Right in whole or in part,
                           exercise the Limited Right (or part thereof)
                           pertaining to such Option. Such Participant, whether
                           the exercise is pursuant to his election or automatic
                           pursuant to the terms hereof shall be entitled to
                           receive in cash an amount determined by multiplying
                           the number of shares subject to such Option (or part
                           thereof) by the amount by which the exercise price of
                           each share is exceeded by (A) if such Option is an
                           Incentive Stock Option, the fair market value of such
                           shares at the date of exercise or (B) if such Option
                           is a Nonqualified Stock Option, the greater of (x)
                           the highest purchase price per share paid for the
                           shares of the Company beneficially acquired in the
                           transaction or series of transactions resulting in
                           the Change in Control by the person or persons deemed
                           to have acquired control pursuant to the Change in
                           Control and (y) the highest fair market value of
                           shares of Common Stock during the Limited Right
                           Exercise Period prior to the time of exercise. A
                           Limited Right shall be exercised in whole or in part
                           by giving written notice of such exercise on a form
                           approved by the Committee to the Secretary of
                           Fortune, except that no such written notice shall be
                           required in the event such Limited Right is
                           automatically exercised pursuant to the terms hereof.
                           The

<PAGE>

                           exercise shall be effective as of the date specified
                           in the notice of exercise, but not earlier than the
                           date the notice of exercise is actually received and
                           in the hands of the Secretary of Fortune. In the
                           event the last day of a Limited Right Exercise Period
                           shall fall on a day that is not a business day, then
                           the last day thereof shall be deemed to be the next
                           following business day. To the extent an Option or a
                           Right pertaining thereto is exercised in whole or in
                           part, the Limited Right in respect of such Option
                           shall terminate and cease to be exercisable. To the
                           extent a Limited Right is exercised in whole or in
                           part, the Option (or part thereof) to which such
                           Limited Right pertains and the Right (or part
                           thereof) pertaining to such Option (or part thereof)
                           shall terminate and cease to be exercisable.

                                    (ii) Notwithstanding anything to the
                           contrary in the first sentence of Section 5(a)(ii) or
                           in 5(a)(iv) or 5(b), the provisions of this Section
                           12(b)(ii) will be applicable in the event of a
                           termination of a Participant's employment on or after
                           a Change in Control and prior to the expiration of
                           the Limited Right Exercise Period applicable thereto.
                           No Option, Right or Limited Right held by a
                           Participant shall terminate or cease to be
                           exercisable as a result of his termination of
                           employment on or after a Change in Control and prior
                           to the expiration of the Limited Right Exercise
                           Period applicable thereto, but shall be exercisable
                           throughout the Limited Right Exercise Period
                           applicable thereto; provided, however, that in no
                           event shall any Option or Right be exercisable after
                           ten years from its date of grant (except in the event
                           of death as provided in Section 5(a)(iv)). However,
                           in the event such Option or Right or the Option to
                           which such Limited Right pertains has not, on the
                           date of termination, been held for more than six
                           months from the date of its grant, the preceding
                           sentence shall apply only if such Participant has
                           been terminated other than for just cause (as
                           hereinafter defined) or has voluntarily terminated
                           his employment because he in good faith believes that
                           as a result of such Change in Control he is unable
                           effectively to discharge his duties or the duties of
                           the position he occupied immediately prior to such
                           Change in Control or because of a diminution in his
                           aggregate compensation or in his aggregate benefits
                           below that in effect immediately prior to such Change
                           in Control. For purposes hereof termination shall be
                           for "just cause" only if such termination is based on
                           fraud, misappropriation or embezzlement on the part
                           of the Participant which results in a final
                           conviction of a felony. Nothing in this Section 12(b)
                           shall be in derogation of any rights otherwise
                           provided in the Plan in respect of a Participant's
                           Options or Rights in the event of his death,
                           disability or retirement under a retirement plan of
                           the Company.

                                    (iii) A "Change in Control" shall be deemed
                           to have occurred if (A) any person (as that term is
                           used in Sections 13(d) and 14(d) of the Exchange Act,
                           as in effect on February 23, 1999) is or becomes the
                           beneficial owner (as that term is used in Section
                           13(d) of the Exchange Act, and the rules and
                           regulations promulgated thereunder, as in effect on
                           February 23, 1999) of 20% or more of the combined
                           voting power of the then outstanding voting
                           securities entitled to vote generally in the election
                           of directors ("Voting Securities") of Fortune,
                           excluding, however, the following: (1) any
                           acquisition directly from Fortune, other than an
                           acquisition by virtue of the exercise of a conversion
                           privilege unless the security being so converted was
                           itself acquired directly from Fortune, (2) any
                           acquisition by Fortune, (3) any acquisition by an
                           employee benefit plan (or related trust) sponsored or
                           maintained by Fortune or entity controlled by
                           Fortune, or (4) any acquisition pursuant to a
                           transaction that complies with clauses (1), (2) and
                           (3) of Section 12(b)(iii)(C), (B) more than 50% of
                           the members of the Board of Directors of Fortune
                           shall not be Continuing Directors (which term, as
                           used herein, means the directors of Fortune (1) who
                           were members of the Board of Directors of Fortune on
                           February 23, 1999 or (2) who subsequently became
                           directors of Fortune and who were elected or
                           designated to be candidates for election as nominees
                           of the Board of Directors, or whose election or
                           nomination for election by Fortune's stockholders was
                           otherwise approved, by a vote of a majority of the
                           Continuing Directors then on the Board of Directors
                           but shall not include, in any event, any individual
                           whose initial assumption of office occurs as a result
                           of

<PAGE>

                           either an actual or threatened election contest (as
                           such terms are used in Rule 14(a)-11 of Regulation
                           14A promulgated under the Exchange Act) or other
                           actual or threatened solicitation of proxies or
                           consents by or on behalf of a person other than the
                           Board of Directors), (C) Fortune shall be merged or
                           consolidated with, or, in any transaction or series
                           of transactions, substantially all of the business or
                           assets of Fortune shall be sold or otherwise acquired
                           by, another corporation or entity unless, as a result
                           thereof, (1) the stockholders of Fortune immediately
                           prior thereto shall beneficially own, directly or
                           indirectly, at least 60% of the combined Voting
                           Securities of the surviving, resulting or transferee
                           corporation or entity (including, without limitation,
                           a corporation that as a result of such transaction
                           owns Fortune or all or substantially all of Fortune's
                           assets either directly or through one or more
                           subsidiaries) ("Newco") immediately thereafter in
                           substantially the same proportions as their ownership
                           immediately prior to such corporate transaction, (2)
                           no person beneficially owns (as such terms are used
                           in Sections 13(d) and 14(d) of the Exchange Act, and
                           the rules and regulations promulgated thereunder (as
                           in effect on February 23, 1999)), directly or
                           indirectly, 20% or more, of the combined Voting
                           Securities of Newco immediately after such corporate
                           transaction except to the extent that such ownership
                           of Fortune existed prior to such corporate
                           transaction and (3) more than 50% of the members of
                           the Board of Directors of Newco shall be Continuing
                           Directors or (D) the stockholders of Fortune approve
                           a complete liquidation or dissolution of Fortune.

                  (c) Notwithstanding any other provision of the Plan, in the
         event that a Participant's employment is terminated on or after a
         Change in Control (as defined in Section 12(b)(iii)) (x) by the Company
         other than for just cause (as defined in Section 12(b)(ii)) or (y) by
         the Participant because the Participant in good faith believes that as
         a result of such Change in Control he is unable effectively to
         discharge his duties or the duties of the position he occupied
         immediately prior to such Change in Control or because of a diminution
         in his aggregate compensation or in his aggregate benefits below that
         in effect immediately prior to such Change in Control:

                                    (i) with respect to shares of Restricted
                           Stock then outstanding, the Restriction Period with
                           respect to such shares shall be deemed satisfied as
                           of the date such Participant's employment is so
                           terminated, but only as to that portion of such
                           shares as is equivalent to the portion of the
                           Restriction Period applicable thereto that has been
                           satisfied as of such date without regard to this
                           Section 12(c)(i); as of such date, the portion of
                           such shares as to which the Restriction Period is
                           deemed satisfied pursuant to this Section 12(c)(i)
                           shall become nonforfeitable and all other of such
                           shares shall be forfeited; and

                                    (ii) with respect to Performance Awards and
                           Other Stock-Based Awards, including shares of Common
                           Stock covered thereby, all such Performance Awards
                           and Other Stock-Based Awards shall become
                           nonforfeitable and shall be paid out on the date such
                           Participant's employment is so terminated (A) as if
                           all Performance Periods or other conditions or
                           restrictions applicable thereto had been completed or
                           satisfied, the maximum performance or other
                           objectives with respect thereto had been attained and
                           all Awards granted with respect thereto had been
                           fully earned, but (B) prorated for the portion of any
                           relevant Performance Period or other period ending on
                           the date such Participant's employment is so
                           terminated, unless prior to the Change in Control the
                           Committee otherwise so provides.

                  (d) In the case of a Participant whose principal employer is a
         Subsidiary, then such Participant's employment shall be deemed to be
         terminated for purposes of Sections 6 through 9 as of the date on which
         such principal employer ceases to be a Subsidiary (the "Divestiture
         Date") and, except to the extent otherwise determined by the Committee
         and set forth in the applicable Award Agreement:

                                    (i) with respect to shares of Restricted
                           Stock held by such Participant, the Restriction
                           Period shall be deemed satisfied as of the
                           Divestiture Date, but only as to that

<PAGE>

                           portion of such shares as is equivalent to the
                           portion of the Restriction Period applicable thereto
                           that has been satisfied as of the Divestiture Date
                           without regard to this Section 12(d)(i); as of the
                           Divestiture Date, the portion of such shares as to
                           which the Restriction Period is deemed satisfied
                           pursuant to this Section 12(d)(i) shall become
                           nonforfeitable and all other of such shares shall be
                           forfeited; and

                                    (ii) with respect to Performance Awards and
                           Other Stock-Based Awards, including shares of Common
                           Stock covered thereby, all such Performance Awards
                           and Other Stock-Based Awards shall become
                           nonforfeitable and shall be paid out on the
                           Divestiture Date (A) as if all Performance Periods or
                           other conditions or restrictions applicable thereto
                           had been completed or satisfied, the maximum
                           performance or other objectives with respect thereto
                           had been attained and all Awards granted with respect
                           thereto had been fully earned, but (B) prorated for
                           the portion of the relevant Performance Period or
                           other period ending on the Divestiture Date, all as
                           determined by the Committee.

         In the event of a termination of the Plan, then each Participant's
employment shall be deemed to be terminated for purposes of Sections 6 through 9
as of the date of such termination of the Plan and, except to the extent
otherwise determined by the Committee and set forth in the applicable Award
Agreement, the foregoing provisions of clauses (i) and (ii) of this Section
12(d) shall apply to such Participant's shares of Restricted Stock, Performance
Awards and Other Stock-Based Awards with the same effect as if the date of such
termination of the Plan were a Divestiture Date.

13.      AMENDMENT AND TERMINATION

                  (a) The Board of Directors shall have the power to amend the
         Plan, including the power to change the amount of the aggregate fair
         market value of the shares subject to Incentive Stock Options first
         exercisable in any calendar year under Section 5 to the extent provided
         in Section 422, or any successor provision, of the Internal Revenue
         Code. It shall not, however, except as otherwise provided in the Plan,
         without approval of the stockholders of Fortune, increase the maximum
         number of shares authorized for the Plan, nor change the class of
         eligible employees to other than Key Employees, nor reduce the basis
         upon which the minimum Option price is determined, nor extend the
         period within which Awards under the Plan may be granted, nor provide
         for an Option that is exercisable more than ten years from the date it
         is granted except in the event of death. It shall have no power to
         change the terms of any Award theretofore granted under the Plan so as
         to impair the rights of a Participant without the consent of the
         Participant whose rights would be affected by such change except to the
         extent, if any, provided in the Plan or in the Award.

                  (b) The Board of Directors may suspend or terminate the Plan
         at any time. No such suspension or termination shall affect Options,
         Rights or Limited Rights then in effect.

14.      FOREIGN OPTIONS AND RIGHTS

                  (a) The Committee may grant Awards to Key Employees who are
         subject to the tax laws of nations other than the United States, which
         Awards may have terms and conditions that differ from the terms thereof
         as provided elsewhere in the Plan for the purpose of complying with the
         foreign tax laws. Awards of Options may have terms and conditions that
         differ from Incentive Stock Options and Nonqualified Stock Options for
         the purposes of complying with the foreign tax laws.

                  (b) The Committee may grant stock appreciation rights to Key
         Employees without the grant of an accompanying Option if the Key
         Employees are subject at the time of grant to the laws of a
         jurisdiction that prohibits them from owning Common Stock. The Rights
         shall permit the Key Employees to

<PAGE>

         receive, at the time of any exercise of such Rights, cash equal to the
         amount by which the fair market value of all shares of Common Stock in
         respect to which the Right was granted exceeds the exercise price
         thereof.

                  (c) The terms and conditions of Options and Rights granted
         under Sections 14(a) and 14(b) may differ from the terms and conditions
         which the Plan would require to be imposed upon Incentive Stock
         Options, Nonqualified Stock Options and Rights if the Committee
         determines that the grants are desirable to promote the purposes of the
         Plan for the Key Employees identified in Sections 14(a) and 14(b);
         provided that the Committee may not grant such Options or Rights that
         do not comply with the limitations of Section 13(a).

15.      WITHHOLDING TAXES

         The Company shall have the right to deduct from any cash payment made
under the Plan any federal, state or local income or other taxes required by law
to be withheld with respect to such payment. It shall be a condition to the
obligation of Fortune to deliver shares upon the exercise of an Option or Right,
upon payment of a Performance Award, upon delivery of Restricted Stock or upon
exercise, settlement or payment of any Other Stock-Based Award that the
Participant pay to the Company such amount as may be requested by the Company
for the purpose of satisfying any liability for such withholding taxes. Any
Award Agreement may provide that the Participant may elect, in accordance with
any conditions set forth in such Award Agreement, to pay any withholding taxes
in shares of Common Stock.

16.      EFFECTIVE DATE

         The Plan shall be effective on and as of April 27, 1999 upon the
approval thereof by the stockholders of Fortune.

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