Document:

ex1021.htm

    EXHIBIT
10.21

     

    PURCHASE AND SALE AGREEMENT
(this “Agreement”), dated as
of December 15, 2008, by and between BP Parallel Corporation, a Delaware
corporation (“Berry”), and Apollo
Management VI, L.P., a Delaware limited partnership (“Apollo”).

     

    WHEREAS,
Apollo and its affiliates from time to time purchase securities in open market
or privately negotiated transactions for their own account, including debt
securities;

     

    WHEREAS,
Apollo intends to facilitate from time to time during the term of this Agreement
certain purchases by Berry of outstanding debt securities of Berry Plastics
Corporation or Berry Plastics Group, Inc. by purchasing such debt securities in
open market or privately negotiated transactions (any such debt securities so
purchased by Apollo, the “Notes”);
and

     

    WHEREAS,
Apollo may propose to Berry that any purchases by Apollo of Notes be subject to
the terms of this Agreement, on the terms contemplated by this Agreement, mutatis
mutandis.

     

    NOW,
THEREFORE, in consideration of the premises and of the mutual covenants,
agreements and warranties herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

     

    1.           Designation of
Notes.  From time to time Apollo may propose to sell Notes to
Berry in accordance with this Agreement.  In the event Berry desires
to purchase any such Notes, Apollo and Berry agree to execute a schedule of
designated notes (each a “Designated Notes Schedule”) which shall describe,
among other things, the Notes to be acquired, the anticipated Closing Date and
the Consideration (as defined below) therefore.  Notes set forth on a
Designated Notes Schedule are referred to herein as “Designated
Notes.”  For avoidance of doubt (a) in the event Apollo has acquired
any Notes prior to the date of this Agreement, such Notes shall not be
Designated Notes unless included on a Designated Notes Schedule signed by Berry
and Apollo and (b) the parties may execute a Designated Notes Schedule prior to
the purchase by Apollo of the applicable Designated Notes, in which case the
Designated Notes Schedule may provide (i) the range of acceptable purchase
prices with respect to Apollo’s purchase of such Designated Notes and (ii) that
such Designated Notes Schedule shall be void and of no force and effect if
Apollo has not acquired any of such Designated Notes by the end of a specified
period.

     

    2.           Purchase and Sale.
(a) Subject to the terms and conditions herein set forth, Berry agrees to
purchase, or cause one of its affiliates to purchase, from Apollo, and Apollo
agrees to sell to Berry or such affiliate, on a Closing Date (as hereinafter
defined), any Designated Notes held by Apollo as of such Closing Date in
exchange for the sum of Apollo’s purchase price of such Designated Notes set
forth in the applicable Designated Notes Schedule, plus any reasonable out of
pocket fees and expenses incurred by Apollo (such amount to be provided to Berry
in reasonable detail) in connection with Apollo’s purchase (collectively, the
“Consideration”),
provided, however, that if the
conditions set forth in Section 7(b) or (c) are not satisfied prior to or on the
fifth day following the filing of the fiscal quarter results for the third
fiscal quarter following Apollo’s purchase of any Designated Notes, then Apollo
may sell such Notes to third parties on terms and conditions reasonably
acceptable to Apollo (a “Third Party Sale”).
For the avoidance of doubt, any interest on the Designated Notes accruing
between the date of Apollo’s purchase and the Closing Date (or any sale of
Designated Notes pursuant to the preceding proviso) shall be for Apollo’s
account.

     

    (b) Upon
the earlier of a binding agreement for a Third Party Sale or consummation of a
Third Party Sale, this Agreement shall no longer be effective with respect to
the Notes that are the subject of the Third Party Sale, and neither party shall
have any liability or obligation to the other party hereto with respect to such
Designated Notes.

     

    3.           Representations and
Warranties of Berry. Berry hereby represents and warrants to Apollo, as
of the date of this Agreement and as of any Closing Date, as
follows:

     

    (a)           Due Organization.
Berry has been duly formed and is validly existing as a corporation in good
standing under the laws of the State of Delaware.

     

    (b)           Authorization. Berry
has the requisite power to enter into this Agreement and the transactions
contemplated hereby and to carry out its obligations hereunder and thereunder.
This Agreement has been duly authorized, and this Agreement has been duly
executed and delivered by Berry and constitutes a valid and binding agreement
enforceable in accordance with its terms, except, to the extent that
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or other laws affecting the enforcement of creditors rights
generally or by general equitable principles. Neither the execution and delivery
of this Agreement, the consummation of the transactions contemplated hereby, nor
compliance with the terms, conditions or provisions of this Agreement will be a
violation of any of the terms, conditions or provisions of Berry’s
organizational documents (as amended through the Closing Date).

     

    4.           Representations and
Warranties of Apollo. Apollo hereby represents and warrants to Berry, as
of the date of this Agreement and as of any Closing Date, as
follows:

     

    (a)           Due Organization.
Apollo is duly organized and is validly existing as a limited partnership in
good standing under the laws of the State of Delaware.

     

    (b)           Authorization. Apollo
has the requisite power to enter into this Agreement and the transactions
contemplated hereby and to carry out its obligations hereunder and thereunder.
This Agreement has been duly authorized, executed and delivered by Apollo and
constitutes a valid and binding agreement of Apollo enforceable in accordance
with its terms, except to the extent that enforceability may be limited by
applicable bankruptcy, insolvency, reorganization or other laws affecting the
enforcement of creditors rights generally or by general equitable principles.
Neither the execution and delivery of this Agreement, consummation of the
transactions contemplated hereby, nor compliance with the terms, conditions or
provisions of this Agreement, will be a violation of any of the terms,
conditions or provisions of Apollo’s organizational documents (as amended
through the Closing Date).

     

    (c)           Title. As of the
Closing Date, Apollo will have good and valid title to the Designated Notes,
free and clear of any and all liens, encumbrances, claims, security interests
and other legal or equitable encumbrances of any nature whatsoever, and at the
Closing Date, upon delivery of the Consideration therefor, Apollo will deliver
to Berry good, valid and marketable title to the Designated Notes, free and
clear of all liens, encumbrances, claims, security interests and other legal or
equitable encumbrances of any nature whatsoever.

     

    5.           Public Announcements.
The parties will consult with each other before issuing, and provide each other
with the reasonable opportunity to review and comment upon, any press release or
otherwise making any public statements with respect to the transactions
contemplated by this Agreement, and shall not issue any such press release or
make any such public statement without the reasonable consent of the other
party, except as may be required by applicable law, by court process or by
obligations pursuant to any listing agreement with any national securities
exchange or transaction reporting system so long as the other party is notified
promptly by the disclosing party of such press release or public
statement.

     

    6.           Closing. With respect
to the acquisition of Designated Notes specified in Designated Notes Schedule,
the closing thereof (a “Closing”) shall occur
at 10:00 a.m. (Eastern time) as soon as practicable after the execution of such
Designated Notes Schedule but in any event no later than the second business day
following the date upon which all of the conditions set forth in Section 6 and
Section 7 are satisfied or waived (other than those conditions that by their
nature are to be satisfied at the Closing, but subject to the satisfaction or
(to the extent permitted by applicable law) waiver of those conditions), or at
such other place, time and date as shall be agreed in writing between Berry and
Apollo (such date being the “Closing Date”). The
Closing shall take place in person or electronically, at a place as the parties
shall mutually agree, at which time the parties shall make the deliveries
described below.

     

    (a)           Deliveries by Berry.
At the Closing, Berry shall deliver or cause to be delivered to Apollo the sum
of (i) the Consideration plus (ii) any accrued
and unpaid interest on the Designated Notes, which shall be delivered by wire
transfer of immediately available funds to the account specified by
Apollo.

     

    (b)           Deliveries by Apollo.
At the Closing, Apollo shall deliver or cause to be delivered to Berry a letter
of transmittal in customary form transferring the Designated Notes to Berry,
together with such other documents of transfer as Berry shall reasonably
request, all in form and substance reasonably satisfactory to
Berry.

     

    7.           Conditions to the
Obligations of Berry. The obligations of Berry under this Agreement are
subject to the fulfillment of each of the following conditions:

     

     (a)           Injunctions. No
preliminary or permanent injunction or other final order by any United States
federal or state court shall have been issued which prevents the consummation of
the transactions contemplated hereby.

     

    (b)           Financial Covenant
Compliance. Berry Plastics Corporation shall be in Pro Forma Compliance
as defined in and pursuant to (i) the Second Amended and Restated Term Loan
Credit Agreement, dated April 3, 2007, by and among Berry Plastics Corporation,
Berry Plastics Group, Inc., the subsidiaries of Berry Plastics Corporation party
thereto, the lenders party thereto, Credit Suisse, Cayman Islands Branch, as
administrative agent and the other agents party thereto, and (ii) the Amended
and Restated Revolving Credit Agreement, dated as of April 3, 2007, by and among
Berry Plastics Corporation, Berry Plastics Group, Inc., the subsidiaries of
Berry Plastics Corporation party thereto, the lenders party thereto, Bank of
America, N.A. as administrative agent and the other agents party
thereto.

     

    (c)           Other Debt Agreement
Compliance.  Berry Plastics Corporation and Berry Plastics
Group, Inc. shall be in compliance with all other material agreements evidencing
material indebtedness of Berry Plastics Corporation or Berry Plastics Group,
Inc. as applicable; and the purchase and sale of Designated Notes as
contemplated by this Agreement shall be permitted under the terms of all
material agreements evidencing material indebtedness of Berry Plastics
Corporation and Berry Plastics Group, Inc.

     

    8.           Conditions to the
Obligations of Apollo. The obligations of Apollo under this Agreement are
subject to the fulfillment of each of the following conditions:

     

    (a)           Performance. Berry
shall have performed and complied in all material respects with all agreements,
covenants, obligations and conditions required by this Agreement to be performed
or complied with by it.

     

    (b)           Injunctions. No
preliminary or permanent injunction or other final order by any United States
federal or state court shall have been issued which prevents the consummation of
the transactions contemplated hereby.

     

    9.           Survival. The
representations and warranties of the parties shall survive the Closing
indefinitely.

     

    10.           Termination.  This
Agreement may be terminated and the transactions contemplated hereby may be
abandoned at any time:

     

    (a)           by
mutual written consent of Berry and Apollo;

     

    (b)           by
either Berry or Apollo if a permanent injunction or other final order by any
United States federal or state court shall have been issued which prevents the
consummation of the transactions contemplated hereby; or

     

    (c)           by
either Berry or Apollo upon thirty (30) days prior written notice so long as
Apollo no longer holds any Designated Notes.

     

    11.           Successors and
Assigns. The provisions of this Agreement shall be binding upon and inure
to the benefit of the parties and their respective legal successors and
permitted assigns. No provision of this Agreement is intended to confer any
rights, benefits, remedies, obligations or liabilities hereunder upon any person
or entity other than the parties and their respective legal successors and
permitted assigns. Neither party may assign, delegate or otherwise transfer any
of its rights or obligations under this Agreement without the prior written
consent of the other party.

     

    12.           Notices. Any notice
or other communication provided for herein or given hereunder to a party shall
be in writing and shall be given by delivery, by telex, telecopier or by mail
(registered or certified mail, postage prepaid, return receipt requested) to the
respective parties as follows:

     

    If to
Berry:

     

    BP
Parallel Corporation

    101
Oakley Street

    Evansville,
Indiana 47710

    Attn: Ira
G. Boots

    Fax:
(812) 421-9804

    

    If to any
Apollo entity:

     

    Apollo
Management VI, L.P.

    9 West
57th St.

    New York,
New York 10019

    Attn:
Robert V. Seminara

    Fax:
(212) 515-3263

    

    or to
such other address with respect to a party as such party shall notify the other
in writing.

     

    13.           Waiver. No party may
waive any of the terms or conditions of this Agreement, nor may this Agreement
be amended or modified, except by a duly signed writing referring to the
specific provision to be waived, amended or modified. No failure or delay by any
party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege.

     

    14.           Entire Agreement.
This Agreement constitutes the entire agreement, and supersedes all other prior
agreements and understandings, both written and oral, among the parties and
their affiliates.

     

    15.           Expenses. Except as
otherwise expressly contemplated herein to the contrary, regardless of whether
the transactions contemplated hereby are consummated, each party shall pay its
own expenses incident to preparing for, entering into and carrying out this
Agreement and the consummation of the transactions contemplated
hereby.

     

    16.           Captions. The Section
and Paragraph captions herein are for convenience of reference only, do not
constitute part of this Agreement and shall not be deemed to limit or otherwise
affect any of the provisions hereof.

     

    17.           Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same
instrument. This Agreement shall become effective when each party shall have
received counterparts hereof signed by each of the other parties.

     

    18.           GOVERNING LAW. THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES OF SUCH
STATE.

     

    19.           Jurisdiction; Venue;
Services of Process. Each of the parties hereto hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction of the Delaware
Court of Chancery in and for New Castle County, or in the event (but only in the
event) that such court does not have subject matter jurisdiction over such
action or proceeding, the United States District Court for the District of
Delaware, for any proceeding arising out of or relating to this Agreement and
the transactions contemplated hereby (and agrees not to commence any proceeding
relating thereto except in such courts), and further agrees that service of any
process, summons, notice or document by U.S. registered mail to its respective
address set forth in this Agreement shall be effective service of process for
any proceeding brought against it in any such court.  Each of the
parties hereto hereby irrevocably and unconditionally waives any objection to
the laying of venue of any proceeding arising out of this Agreement or the
transactions contemplated hereby in the Delaware Court of Chancery in and for
New Castle County, or in the event (but only in the event) that such court does
not have subject matter jurisdiction over such action or proceeding, the United
States District Court for the District of Delaware, and hereby further
irrevocably and unconditionally waives and agrees not to plead or claim in any
such court that any such proceeding brought in any such court has been brought
in an inconvenient forum.  Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

     

    20.           Severability. If any
term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of this
Agreement shall remain in full force and effect and shall in no way be affected,
impaired or invalidated so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially
adverse to any party.

     

    

     

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    IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed and
delivered as of the day and year first executed.

     

    

     

    BP
PARALLEL CORPORATION

    

    

    By:           ____________________________________

    Name:

     

    Title:

     

    APOLLO
MANAGEMENT VI, L.P.

    

    By: AIF
VI Management, LLC, its General Partner

    

    

    By:           ____________________________________

    Name:

     

    Title:ex10_1.htm

    
      

    

    
      Exhibit
10.1

      

      

      
        	 
      	
                December
      14, 2008

              

      

      

      

      Michael
N. Garin

      49 Moore
Road

      Bronxville,
New York 10708

      

      Dear
Michael:

      

      This
letter represents the agreement between CME Development Corporation (“CME” or
the “Company”) and Michael N. Garin (“you”) with respect to the termination of
your employment (the “Agreement”), effective as of January 1, 2009 (the
“Effective Date”).  Effective as of the Effective Date, you hereby
retire as the Chief Executive Officer of the Company and its parent company,
Central European Media Enterprises, Ltd. (“CME Ltd.”), and resign from all
positions with the Company, CME Ltd., and any subsidiaries of the Company or CME
Ltd., any associated company of any of them and any joint venture in which any
of the foregoing are a partner, member or shareholder (each of the foregoing, an
“Affiliate”), except that you are not resigning as a director on the Board of
Directors of CME Ltd. While you continue to serve as a CME Ltd. director, you
shall have the title of non-executive Vice Chairman. For the period starting on
the Effective Date through January 31, 2011 (the “Consulting Period”), the
Company will engage you as a consultant (as discussed in Paragraph 4 below). You
and the Company acknowledge and agree that the amounts owed to you as set forth
below (other than the amounts provided in Paragraph 2(b) regarding your services
as a director) are not contingent on your remaining on the Board of Directors of
CME Ltd., and neither CME Ltd. nor any  of its directors, officers or
shareholders has any obligation to continue to nominate you to serve on the
Board of Directors of CME Ltd.

      

      1.         Severance
Amount.  (a)         In
consideration of the mutual promises and general release set forth herein, CME
will pay you severance at the rate of your annual base salary, as set forth in
your Employment Agreement dated March 30, 2004, as amended on July 28, 2006 and
November 15, 2007 (as amended, your “Employment Agreement”), for the period
starting on the Effective Date and ending on January 31, 2010. During the period
beginning on the Effective Date and ending January 31, 2010, you shall
continue to be paid at your current annual rate of base salary in accordance
with CME’s regular payroll practices (the “Regular Payroll Amount”) as
follows:

      
         

      

      
        	
                 
      

              	
                i.

              	
                beginning
      on the regular payroll dates (“Regular Payroll Dates”)
      following January 1. 2009, you will receive your  Regular
      Payroll Amount on the Regular Payroll Dates that occur prior to March
      15th  2009;

              

      

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                ii.

              	
                beginning
      with the first Regular Payroll Date on or after March 15th 2009, you will
      receive your Regular Payroll Amount, if any remains due, until you have
      received an amount equal to the maximum amount permitted to be paid
      pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii)(A) (i.e., the
      lesser of two times your annualized compensation or two times the Section
      401(a)(17) limit); provided, however, that in no event shall payment be
      made to you pursuant to this clause (ii) later than December 31,
      2010; and

              

      

      

      
        	
                 
      

              	
                iii.

              	
                the
      balance of your Regular Payroll Amount, if any remains due, will be paid
      to you on your Regular Payroll Dates beginning with
      the Regular Payroll Date that follows the date of the final
      payment pursuant to clause
(ii);

              

      

      

      provided,
however, that because you are a “specified employee” (within the meaning of
Section 409A of the Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder (“Code Section 409A”)), any portion of the
aggregate Regular Payroll Amount that would be paid to you during the six-month
period following January 1, 2009 that constitutes deferred
compensation (within the meaning of Code Section 409A), shall be paid to you in
its entirety on the earlier of (A) the first Regular Payroll Date
of July 2009 or (B) your death (the applicable date, the “Permissible
Payment Date”) rather than as described in subclauses (i), (ii) or (iii) above,
as applicable, and any remaining amounts, if any, shall be paid to you or to
your estate, as applicable, by payment of your Regular Payroll Amount on your
Regular Payroll Dates beginning with the Regular Payroll Date that follows the
Permissible Payment Date.  Each payment under this Agreement shall be
considered a “separate payment” and not a series of payments for purposes of
Code Section 409A.

      

      From
February 1, 2010 through the remainder of the Consulting Period, CME will pay
you an aggregate sum of $300,000, payable in equal monthly installments in
arrears.

      

      (b)     You
will also be entitled to receive the Bonus (as defined in the Employment
Agreement) and Additional Bonus (as defined in the Employment Agreement)
(collectively, the “Agreement Bonuses”) for fiscal years 2008 and 2009, and a
pro-rated bonus for 2010 as if you had been employed through the expiration of
your employment term on January 31, 2010  to the extent that any such
Agreement Bonus is earned for any such calendar year under the terms of your
Employment Agreement.  Any Agreement Bonus owed to you will be paid at
the time that it would ordinarily be paid by the Company were you still employed
with the Company, but in no event later than the end of the calendar year
following the calendar year to which the Agreement Bonus
relates.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (c)     With
respect to the foregoing cash severance benefits, CME shall make all payments
subject to applicable employee payroll withholdings and deductions and comply
with all reporting requirements to the extent required by law or otherwise in
accordance with its regular practices.

      

      (d)     If
you are engaged, during the Consulting Period, to render full-time services,
amounts you earn from such full-time employment during the period you otherwise
would have been receiving payments from the Company in accordance with this
Agreement shall offset any financial obligation of the Company to you under this
Agreement, and you agree to notify the Company in writing of your acceptance of
any such other employment within five (5) days after accepting such other
employment.

      

      2.         Benefits.

      

      (a)   
 Your health benefits shall continue for one year following the end of the
Consulting Period, or until January 31, 2012, and thereafter, to the extent
available, you may elect to continue the health insurance coverage that you had
maintained as an employee pursuant to the Consolidated Omnibus Budget
Reconciliation Act, as amended (“COBRA”) for up to 18 months after January 31,
2012 (or up to the maximum period allowed by law if such maximum period is less
than 18 months); provided that your health insurance coverage will terminate
earlier if you obtain other employment or are eligible for other group health
plan coverage.  You agree to immediately notify the Company in writing
of any such eligibility.  If COBRA is not available for the 18 months
following January 31, 2012, the Company will continue to make your health
insurance coverage available for this 18-month period, and you will reimburse
the Company for 100% of the premiums that you would have paid if COBRA had been
available.

      

      (b)     During
the period that you are serving as a director and/or non-executive Vice Chairman
of CME Ltd., you will be entitled to be reimbursed for your travel and
entertainment expenses on the same terms and conditions as other directors of
CME Ltd., and you will be covered by the D&O insurance of CME Ltd. to the
same extent as the other directors of CME Ltd. Except as provided in the
immediately preceding sentence, during the Consulting Period, you will not be
entitled to receive, and you hereby waive any and all rights to receive, any
other fees, compensation, stock options or other amounts or benefits in respect
of your service as a director and/or non-executive Vice Chairman of CME
Ltd.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (c)     During
the Consulting Period, you will be entitled to be reimbursed for any reasonable
out of pocket expenses incurred in performing the Consulting Services that are
authorized in advance by the Company, subject to the submission of appropriate
documentation.

      

      (d)     On
and after the Effective Date, the Company will no longer provide you with an
office or an assistant.

      

      (e)      You
may retain possession and ownership of the Company laptop computer, PDA and
cellphone that you have been most recently using in your Company work, provided,
that the Company shall cease paying for service to the laptop as of the
Effective Date and the cellphone as of February 28, 2009. Prior to February 28,
2009, the Company will obtain a PAC code for you in order to allow you to retain
your UK cellphone number. You shall return your laptop no later than the thirty
days following the Effective Date, and the Company shall have the right to
remove all Company confidential information and Company-licensed software from
such laptop and will deliver the laptop to you within ten (10) days after
receipt thereof by the Company. You will no longer have access to your Company
email account after the Effective Date but the Company will arrange for emails
to your Company email address to be forwarded to you for the period you are
serving as a director of CME Ltd.

      

      3.        Stock
Options.  On the Effective Date, you will be entitled to retain
fully vested non-qualified stock options to purchase 290,000 shares of Class A
Common Stock of CME Ltd. (the “Existing Options”) under CME Ltd.’s 1995 Amended
and Restated 2005 Stock Incentive Plan, as amended as of April 25, 2007 (the
“Stock Incentive Plan”) of which (i) options to purchase 192,500 shares were
already fully vested prior to the Effective Date, (ii) options to purchase
80,000 shares become fully vested on the Effective Date in accordance with the
terms of the Employment Agreement, (iii) options to purchase 7,500 shares that
would have vested on June 2, 2009 will instead become fully vested on the
Effective Date, (iv) options to purchase 5,000 shares that would have vested on
June 8, 2009 will instead become fully vested on the Effective Date, and (v)
options to purchase 5,000 shares that would have vested on June 8, 2010 will
instead become fully vested on the Effective Date. In addition, on or before the
Effective Date, you will be granted options to purchase 30,000 shares of Class A
Common Stock at the fair market value of such shares on the date of grant, which
will become fully vested on or before the Effective Date, provided that on or
before such vesting date you have not revoked this Agreement in accordance with
Paragraph 16 of this Agreement. Except as expressly provided herein, the Option
will be governed by the terms and conditions set forth in the Stock Incentive
Plan and the applicable option agreement (collectively with the Existing
Options, the “Options”). You will have until January 31, 2012 to exercise the
Options, except that in the event that you breach the restrictive covenants
described in Paragraph 6, you will have 90 days following the date that the
Company gives you written notice of its determination of your breach to exercise
the Options.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      4.     
  Consultancy.  For
the duration of the Consulting Period, the Company will engage you as a
consultant, and you agree to consult and cooperate with, and assist the Company
in any legal or business matter relating to the Company or the Affiliates, as
requested by the Company, upon reasonable advance notice by the Company; provided that you shall not
be required to devote more than thirty (30) hours per month to providing such
services and such services need not be provided to the Company on an exclusive
basis, as long as you comply with the restrictive covenants in your Employment
Agreement, which are incorporated herein by reference as set forth in Paragraph
6 of this Agreement.

      

      5.    
   Release.  In
consideration of CME’s commitment to the various arrangements described in this
Agreement, that you are not otherwise entitled to receive, you hereby generally
and completely release the Company and CME Ltd., and each of their directors,
officers, employees, shareholders, members, partners, agents, attorneys,
predecessors, successors, parent and subsidiary entities, insurers, affiliates,
and assigns, from any and all claims, liabilities and obligations, both known
and unknown, that arise out of or are in any way related to events, acts,
conduct, or omissions occurring prior to your signing this
Agreement.  This general release includes, but is not limited to: (1)
all claims arising out of or in any way related to your employment with the
Company or the termination of that employment; (2) all claims arising from or
related to your Employment Agreement; (3) all claims related to your
compensation or benefits from the Company, including, but not limited to,
salary, bonuses, commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other ownership interests in
the Company; (4) all claims for breach of contract, wrongful termination, and
breach of the implied covenant of good faith and fair dealing; (5) all tort
claims, including, but not limited to, claims for fraud, defamation, emotional
distress, and discharge in violation of public policy; and (6) all federal,
state, and local statutory claims, including, but not limited to, claims for
discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990 and the federal Age Discrimination in
Employment Act of 1967 (as amended) (“ADEA”).

      

      You
acknowledge that you are knowingly and voluntarily waiving and releasing any
rights you may have under ADEA, and that the consideration given for the waiver
and release in the preceding paragraph is in addition to anything of value to
which you were already entitled.  You further acknowledge that you
have been advised by this writing that your waiver and release do not apply to
any rights or claims that may arise after the execution date of this
Agreement.

      

      Notwithstanding
anything to the contrary set forth in this Paragraph 5, neither you nor the
Company release, waive, or discharge the other from any claims to seek to
enforce this Agreement or any provision hereof, including without limitation,
the obligations of the Company or you, as the case may be, under the continuing
provisions of the Employment Agreement specified in Paragraph 6 of this
Agreement.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      6.      
 Continuing
Obligations under Employment Agreement. It is hereby agreed that the
Company’s obligations under the third and fourth sentences of Section 2
(relating to tax equalization payments), Section 11 (relating to limitations on
damages), Section 12 (relating to indemnification) and Section 4 of Annex B
(relating to non-disparagement) of the Employment Agreement, and your
obligations under Section 7 and Annex B (relating to restrictive covenants and
return of property)  and Section 11 (relating to limitations on
damages) of the Employment Agreement, survive the Effective Date and termination
of the Employment Agreement and are incorporated herein by
reference.

      

      7.      
 Additional
Covenants.          (a)  You
covenant and agree to cooperate with and make yourself readily available to CME
or its General Counsel, as CME may reasonably request, to assist it in any
matter, including but not limited to, providing information, giving truthful
testimony in any litigation or potential litigation over which you may have
knowledge, information or expertise.

      

      (b)  
 On and after the date hereof, you agree that any communication with CME
Ltd. investors, analysts or the media concerning CME Ltd. or its Affiliates or
their respective shareholders, directors or employees shall be done in a manner
consistent  with the guidelines set by the Company and/or CME Ltd. and
their respective Boards of Directors; it being understood that the Company is
developing a communications strategy regarding the transition of management that
will involve a communications role for you.

      

      8.     
  No
Admission of Liability.  By entering into this Agreement, the
Company does not admit and specifically denies, any liability or wrongdoing, and
it is expressly understood and agreed that this Agreement is being entered into
solely for the purposes of avoiding and amicably resolving all disputes and
potential claims between you and the Company.

      

      9.    
   Reemployment or
Reinstatement.  You agree that the Company has no obligation,
contractual or otherwise, to rehire, reemploy or recall you in the
future.

      

      10.   
  Entire
Agreement and Severability.  You and CME agree that this
Agreement may not be modified, altered or changed except by a written agreement
signed by the parties hereto.  You and CME acknowledge that this
constitutes the entire agreement on the matters addressed herein and except as
set forth herein, supersedes all prior agreements or understandings between the
parties with respect thereto, including without limitation your Employment
Agreement (excluding the sections thereof incorporated by reference into this
Agreement as set forth in Paragraph 6).  If the application of any
provision of this Agreement, or any section, subsection, subdivision, sentence,
clause, phrase, word or portion of this Agreement is held to be invalid or
unenforceable, the remaining provisions shall remain in full force and
effect.

      

      11.   
  Choice of
Law and Jurisdiction.  The governing law of this Agreement
shall be the substantive and procedural law of the State of New York, without
regard to conflict of law principles, and the venue of any litigation commenced
hereunder shall be New York, New York.  You hereby submit to the
jurisdiction of all state courts of the State of New York and all federal courts
located in the State of New York for the purposes of the enforcement of this
Agreement.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      12.   
  Notices.  Notices
given under this Agreement may be given by registered or certified mail, return
receipt requested, or by personal delivery.  In your case, mailed
notices shall be addressed to you at the home address that you most recently
communicated to the Company in writing with a copy to Daniel M. Wasser, Esq.,
Franklin, Weinrib, Rudell & Vassallo, P.C., 488 Madison Avenue, New York,
New York 10022.  In the case of the Company, mailed notices shall be
addressed to its corporate headquarters, and all notices shall be directed to
the attention of its General Counsel.  A mailed notice shall be deemed
given two (2) business days after mailing.

      

      13.  
   Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same
instrument.

      

      14.  
   No
Assignment.  This Agreement may not be assigned or encumbered
in any way by you, except that in the event of your death during the Consulting
Period, amounts otherwise payable to you under this Agreement will be paid to
your estate.  The Company may assign this Agreement to any successor
(whether by merger, consolidation, or purchase of the Company’s stock) to all or
a controlling interest in the Company’s business, provided that such successor
assumes in writing the Company’s obligations under this Agreement, in which case
this Agreement shall be binding upon and inure to the benefit of such successors
and assigns.

      

      15. 
    Section
409A.  The terms herein are intended, and shall be interpreted,
to comply with Section 409A of the Internal Revenue Code of 1986, as amended
(“Section
409A”).   Nothing herein requires the Company to satisfy
your obligation to pay (or requires the Company to indemnify you with respect
to) all required taxes on any amounts and benefits provided hereunder, including
any taxes imposed under Section 409A.

      

      16.   
  Acknowledgment.  You
acknowledge that you have carefully read this Agreement and understand all of
its terms including the full and final release of claims set forth
above.  You further acknowledge that you had adequate time to consider
the terms of this Agreement and knowingly and voluntarily entered into it; that
you have not relied upon any representation or statement, written or oral, not
set forth in this Agreement; that the only consideration for signing this
Agreement is as set forth herein; that the consideration received for executing
this Agreement is greater than that to which you may otherwise be entitled; and
that this document gives you the opportunity and advises you that you should
consult with your attorney and have this Agreement reviewed by your attorney and
tax advisor prior to signing it (and you acknowledge that you have done
so).  You further acknowledge that you had 21 days from your receipt
of this Agreement to consider this Agreement before executing and delivering
this agreement.  You also acknowledge that you have seven days after
signing this Agreement to revoke it in writing.  Accordingly, no
payments required under this Agreement shall be made until the seven (7) days
following your execution of this Agreement has expired and you have not revoked
this Agreement during that period, so that the Release described in Paragraph 4
of this Agreement has become effective.  You acknowledge that
revocation of this Agreement does not reinstate you as Chief Executive Officer
of the Company.  The offer set forth in this Agreement expires 21 days
after a draft of the Agreement is delivered to you.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      Please
indicate your acceptance of the terms of this Agreement by signing your name in
the space provided below.

      

      

      
        	 
      	
                CME
      Development Corporation

              
	 
      	 
      
	 
      	 
      
	 
      	
                /s/ Herb Granath

              
	 
      	
                By:
      Herb Granath

              
	 
      	
                Title:
      Director

              
	 
      	 
      
	
                ACCEPTED
      AND AGREED:

              	 
      
	 
      	 
      
	 
      	 
      
	
                /s/ Michael N. Garin

              	 
      
	
                Michael
      N. Garin

              	 
      
	
                Dated:
      December 14, 2008

              	 
      

      

       

    

     

    8

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