Document:

Exhibit
10.42

 

EMPLOYMENT AGREEMENT

 

AGREEMENT (“Agreement”), dated as of July 23, 2007 (“Effective Date”) by and
among Centro Watt Management Joint Venture 2 LP, (“CWMJV”), Centro Properties Group, an entity listed on the
Australian Securities Exchange (“Centro”) (collectively referred to as “Company”) and Glenn J.
Rufrano (“Executive”).

 

R  E  C  I  T  A  L

 

CWMJV desires to employ Executive as of the
Effective Date, on the terms and conditions set forth in this Agreement, and
Executive desires to be so employed.

 

AGREEMENT

 

IN CONSIDERATION of the premises and the mutual
covenants set forth below, the parties hereby agree as follows:

 

1.             Employment.  CWMJV hereby agrees to employ Executive and
Executive hereby agrees to accept such employment, on the terms and conditions
hereinafter set forth.

 

2.             Prior Agreements.  The Parties hereby agree that this Agreement
terminates and supersedes the Employment Agreement between Executive and New
Plan Realty Trust, Inc. dated as of March 15, 2005 (“Prior Employment Agreement”)
and that any provisions of the Prior Employment Agreement that specifically
survive closing are hereby waived and deemed to be null and void and no force
or effect.  Accordingly, as of the
Effective Date, neither the Company (or Centro NP LLC, the corporate successor
to New Plan Excel Realty Trust, Inc.) nor the Executive shall have any
rights or obligations pursuant to the Prior Employment Agreement; provided,
however, that prior service with New Plan Realty Trust, Inc will be recognized
for all relevant purposes including, without limitation, Sections 6(e) and
(f) of this Agreement.

 

3.             Term.  Executive’s employment by CWMJV hereunder
shall commence on the Effective Date and shall continue for one (1) year (“Original Term”).  The term of employment hereunder shall
thereafter be automatically extended for an unlimited number of additional
one-year periods (each, an “Additional Term”), and together with the Original Term and any
Additional Terms, the “Term”) unless, at least 180 days prior to the expiration
of the Term, either the Executive or the Company gives written notice to the
other that it is electing not to so extend the Term.  Notwithstanding the foregoing, the Term may
be earlier terminated in strict accordance with the provisions of Section 7
hereof, but subject to the provisions of Section 9 hereof.  At the time Executive ceases to be a
full-time employee of CWMJV, the Executive agrees that he shall resign from any
office he holds with Company and its subsidiaries and any entity in control of,
controlled by or under common control with the Company or in which the Company
owns any common or preferred stock or any ownership interest or any entity in
control of, controlled by or under common control with such entity (“Affiliate”).

 

 

4.             Position and Duties.

 

Chief Executive Officer.  During the Term, the Executive shall serve as
the Chief Executive Officer of all United States operations of Centro and its
Affiliates (“Centro US”); shall have all authorities, duties and
responsibilities customarily exercised by an individual serving as the Chief
Executive Officer of an entity of the size and nature of Centro US; shall have
such other duties, authorities and responsibilities as the Centro Chief
Executive Officer may from time to time reasonably designate, consistent with
the foregoing; and shall report directly to the Centro Chief Executive
Officer.  Executive will comply with the
Company’s policies including, but not limited to, the Code of Conduct and the
Employee Trading in Securities Policy. 
During the Term, the Executive shall devote substantially all of his
business time and efforts to the business and affairs of Centro US (unless
otherwise directed by the Centro CEO); however, nothing shall preclude the
Executive from the following:  (i) serving
on the boards of a reasonable number of non-competing business entities, trade
associations and charitable organizations, (ii) engaging in charitable
activities and community affairs, (iii) accepting and fulfilling a
reasonable number of speaking engagements, and (iv) managing his personal
financial and legal affairs provided that such activities do not either
individually or in the aggregate interfere with the proper performance of his
duties and responsibilities hereunder and are not likely to be contrary to the
Company’s interests.  The Executive has
disclosed to the Company a list of boards of which he is currently a member,
and the Company has consented to his continued membership on such boards.  The Executive shall give prior written notice
before joining any new business board on or after the Effective Date.

 

5.             Place of Performance.  The principal place of employment of
Executive shall be at the Company’s US corporate offices in New York, New York.

 

6.             Compensation and Related Matters.

 

(a)           Salary.  During the Term, CWMJV shall pay Executive an
annual base salary of not less than US$660,000 (“Base Salary”) Executive’s Base Salary shall be paid in
approximately equal installments in accordance with CWMJV’s customary payroll
practices.  If Executive’s Base Salary is
increased, such increased Base Salary shall then constitute the Base Salary for
all purposes of this Agreement.

 

(b)           Short Term Incentive-Bonus.  Executive shall be eligible for an annual
short term incentive-bonus (“STI”) based on the achievement of certain financial
goals. For the financial year ending June 30, 2008, fifty percent of the
STI will be based on achievement of Centro Distributions per Security target
and maximum goals (as defined by the Centro Board) and fifty percent of the STI
will be based on achievement of Centro US Funds from Operations target and
maximum goals (as defined by the Centro CEO and the Centro US CEO). The target
and maximum goals for the financial year ending June 30, 2008 shall be
established prior to July 31, 2007. If a target goal is achieved,
Executive shall receive a STI of 50% of Base Salary for that STI measure. If a
maximum goal is achieved, Executive shall receive a STI of 75% of Base Salary
for that STI measure. If performance for a measure between target goal and
maximum goal is achieved, Executive shall receive a pro rata STI between 50%
and 75% of Base Salary for that measure. Any payment of a prorated STI, if
target for a measure is not achieved, shall be subject to the discretion of the
Centro Board. For the financial year ending

 

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June 30, 2007, Executive shall be eligible for a
guaranteed STI payment (the “Stub STI Payment”) between US$165,000 and US$250,000, the amount of
such guaranteed STI within such range to be at the discretion of the Centro
Board payable by July 31, 2007. For financial years commencing after June 30,
2008, the Centro Board may change the basis upon which STI may be calculated,
but if the target is achieved the Executive shall continue to receive an STI
payout of a total of 100% of Base Salary and if the maximum goal is achieved
the payout shall be a total of 150% of Base Salary (the “STI Range”). If Executive’s
employment is terminated for any reason prior to the end of a financial year,
he shall not be entitled to a prorated STI unless otherwise specifically agreed
by the Centro Board. Notwithstanding anything contained herein to the contrary,
a change in the basis upon which STI may be calculated after June 30, 2008
(but not a reduction to the STI Range) shall not constitute a breach or
violation of this Agreement by the Company or constitute Good Reason for
Executive to terminate his employment. With the exception of the STI for the
financial year ending June 30, 2007, all STI amounts will be paid at the
first appropriate opportunity after June 30 of that financial year, but
not later than July 31 of that same calendar year.

 

(c)           Long Term Incentive Compensation. Executive
shall from time to time be invited to participate in the Centro Employee
Security Plan, the Centro Executive Option Plan or other stock or option
related plans that may be developed in the future. The Centro Board shall
periodically review the nature and extent of such plans in line with comparable
market practice

 

a)                                      Attached hereto as Exhibit A is an invitation from the
Centro Board with respect to a grant of stock options of Centro securities to
the value of US$1,000,000. Upon submission of the invitation by the Executive
to the Company, Executive shall be granted such options and receive a written
grant of stock options consistent with the terms of Exhibit A (the “Option Invitation”).

 

b)                                     Attached hereto as Exhibit B is an invitation from the
Centro Board with respect to a grant of restricted shares of Centro to the
value of US$1,000,000. Upon submission of the invitation by the Executive to
the Company, Executive shall be granted such restricted shares and receive a
written grant of restricted shares consistent with the terms of Exhibit B
(the “Stock Invitation”).

 

(d)           Expenses. CWMJV shall promptly
reimburse Executive for all reasonable business expenses upon the presentation
of reasonably itemized statements of such expenses in accordance with CWMJV’s
policies and procedures now in force or as such policies and procedures may be
modified with respect to all senior executive officers of CWMJV.

 

(e)           Vacation. Executive shall be
entitled to the number of weeks of vacation per year provided to the CWMJV’s
senior executive officers, but in no event less than four (4) weeks
annually.

 

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(f)            Welfare, Pension and Incentive Benefit Plans.
During the Term, the Executive shall be entitled to participate in all employee
benefit plans, programs and arrangements made available to other CWMJV senior
executives generally, including, without limitation, pension, income deferral,
savings, 401 (k), and other retirement plans or programs, medical, dental,
vision, prescription drug, hospitalization, short-term and long-term disability
and life insurance plans and programs, accidental death and dismemberment
protection, travel accident insurance, and any other employee benefit plan,
program or arrangement that may from time to time be made available to other
CWMJV senior executives generally, including any plans, programs or
arrangements that supplement the above-listed types of plans, programs or
arrangements, whether funded or unfunded, subject to the terms of the
applicable plan documents and generally applicable CWMJV policies, in each case
on terms and conditions that are no less favorable to him than those applying
to other CWMJV senior executives generally. To the extent that post-retirement
welfare and other benefits then exist, the Executive shall be entitled to
post-retirement welfare and other benefits on terms and conditions that are no
less favorable to him than those applying to other CWMJV senior executives
generally. Nothing in this Section 6(f) shall be construed to require
CWMJV to establish or maintain any particular employee or post-retirement
benefit plan, program or arrangement except as expressly set forth elsewhere in
this Agreement. CWMJV may, to the extent consistent with the foregoing, alter,
modify, supplement or delete its employee and post-retirement benefit plans at
any time as it sees fit without recourse by the Executive, subject to the terms
of this Section 6(f).

 

(g)           No Hedging. During the Term,
Executive will not in any way attempt to limit the financial risk with respect
to stock options or restricted stock which are not vested by means of any
hedging (including without limitation, selling short) or other techniques.

 

7.             Termination. Notwithstanding
the foregoing, Executive’s employment hereunder may be terminated during the
Term under the following circumstances:

 

(a)           Death. Executive’s employment
hereunder shall terminate upon his death.

 

(b)           Disability. If, as a result of
Executive’s incapacity due to physical or mental illness, Executive shall have
been substantially unable to perform his duties hereunder for an entire period
of one hundred twenty (120) consecutive days, and within thirty (30) days after
written Notice of Termination (as defined in Section 8(a)) is given after
such one hundred twenty (120) day consecutive period, Executive shall not have
returned to the substantial performance of his duties on a full-time basis,
CWMJV shall have the right to terminate Executive’s employment hereunder for “Disability”, and such
termination in and of itself shall not be, nor shall it be deemed to be, a
breach of this Agreement, but shall be subject to the terms of Section 9(c).

 

(c)           Cause. CWMJV shall have the right to
terminate Executive’s employment for Cause, and such termination in and of
itself shall not be, nor shall it be deemed to be, a breach of this Agreement;
provided that no termination of the Executive’s employment hereunder for Cause
shall be effective as a termination for Cause unless the provisions of this Section shall
first have been complied with. The Executive shall be given written notice by
the Centro Chief Executive Officer of the intention to terminate him for Cause
(the “Notice of Intention”). The Notice of Intention shall state in
reasonable detail the particular circumstances 

 

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that constitute the grounds on which the proposed termination
for Cause is based. The Executive shall have 10 days after receiving the Notice
of Intention in which to cure the purported grounds for termination asserted
therein. Termination for Cause shall be effective immediately upon the Centro
Chief Executive Officer’s issuance to Executive of a written Termination for
Cause Notice in the event that Executive fails to cure the purported grounds,
for termination within such 10 day period. Any allegation that Cause existed,
or that cure was not achieved, shall be subject to review, at the Executive’s
election, through arbitration in accordance with Section 14 hereof.

 

For purposes of this Agreement, CWMJV shall have “Cause” to terminate
Executive’s employment upon Executive’s:

 

(i)            conviction of, or plea of guilty or
polo contendere to, a felony; or

 

(ii)           willful and continued failure to use
reasonable best efforts to substantially perform his duties hereunder (other
than such failure resulting from Executive’s incapacity due to physical or
mental illness or subsequent to the issuance of a Notice of Termination by
Executive for Good Reason (as defined in Section 7(d)) after demand for
substantial performance is delivered by CWMJV in writing that specifically identifies
the manner in which CWMJV believes Executive has willfully and continually
failed to use reasonable best efforts to substantially perform his duties
hereunder; or

 

(iii)          willful misconduct that has a
materially adverse effect on the Company or to any Affiliate.

 

For purposes of this Section 7(c), no act, or
failure to act, by Executive shall be considered “willful” unless committed in bad faith and without a
reasonable belief that the act or omission was in the best interests of the
Company or any Affiliates thereof; provided, however, that the willful
requirement outlined in paragraphs (ii) or (iii) above shall be
deemed to have occurred if the Executive’s action or non-action continues for
more than ten (10) days after Executive has received written notice of the
inappropriate action or non-action.

 

(d)           Good Reason. Executive may terminate
his employment for “Good Reason” within thirty (30) days after Executive has actual
knowledge of the occurrence, without the written consent of Executive, of one
of the following events that has not been cured within thirty (30) days after
written notice thereof has been given by Executive to the Company; provided,
however, that any allegation that Good Reason existed, or that cure was not
achieved, shall be subject to review, at CWMJV’s election, through arbitration
in accordance with Section 14 hereof:

 

(i)            the assignment to Executive of
duties materially and adversely inconsistent with Executive’s status as Centro
US Chief Executive Officer or a material and adverse alteration in the nature
of the following: Executive’s duties and/or responsibilities, reporting
obligations, titles or authority as Chief Executive Officer;

 

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(ii)           a reduction in Executive’s Base Salary
or a failure to pay any such amounts when due;

 

(iii)          a failure by the Company to pay the
Stub STI Payment due June 30, 2007 as described in Section 6(b) by
July 31, 2007;

 

(iv)          a failure by the Company to pay either
the First Payment or the Second Payment pursuant to Section 10 when due:

 

(v)           the relocation of Executive’s own
office location to a location that is more than fifty (50) miles from New York,
New York;

 

(vi)          any purported termination of Executive’s
employment for Cause which is not effected pursuant to the procedures of Section 7(c) (and
for purposes of this Agreement, no such purported termination shall be
effective);

 

(vii)         CWMJV’s failure to pay or provide any
material employee benefits due to be provided to Executive under this Agreement
including, but not limited to, a failure to allow the Executive to participate
in all employee benefit plans, programs and arrangements contemplated under Section 6(f);

 

(viii)        CWMJV’s failure to provide in all
material respects the indemnification set forth in Section 13 of this
Agreement, or to require any successor to assume and agree to perform this
Agreement as set forth in Section 15 of this Agreement;

 

(ix)           a Change in Control (as defined
below);

 

(x)            a reduction in the STI Range as
provided for in Section 6(b);

 

(xi)           a failure by Centro and/or the Centro
Board to accept the Option Invitation application and/or the Stock Invitation
application (if properly submitted by the Executive) and a failure thereafter
to provide Executive with written documentation evidencing the grant of the
stock options and restricted shares as provided for in Section 6(c) consistent
with the Option Invitation and the Stock Invitation; or

 

(xii)          the issuance of a notice by CWMJV to
Executive indicating that CWMJV has elected not to renew or extend the Term for
an Additional Period.

 

Executive’s right to terminate his employment
hereunder for Good Reason shall not be affected by his incapacity due to
physical or mental illness. Executive’s continued employment during the thirty
(30) day cure period referred to above in this paragraph (d) shall not
constitute consent to, or a waiver of rights with respect to, any act or
failure to act constituting Good Reason hereunder.

 

If Executive terminates employment hereunder for
Good Reason and thereafter accepts reemployment by CWMN or any successor or
Affiliate within six months of such termination of

 

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employment, Executive’s
termination of employment shall retroactively not be considered a termination
for Good Reason and Executive shall have no entitlement to any payments or
benefits pursuant to Section 9(a). To the extent Executive has already
received payments or benefits pursuant to Section 9(a), Executive shall
repay to such payments or benefits or make other equitable restitution, as the
Centro Board shall determine. It is the express intent of the parties that the
provisions of this paragraph survive termination of this Agreement.

 

As provided in Section 2 of this Agreement, any
similar provision contained in the Prior Employment Agreement is specifically
waived and notwithstanding the terms thereof shall not survive the termination
of the Prior Employment Agreement.

 

In furtherance of clause (xii) above, the issuance
of a notice by the Executive, indicating that the Executive has elected not to
renew or extend the Term for an Additional Period shall not constitute Good
Reason.

 

For purposes of this Agreement, a “Change in Control” means
the occurrence of one of the following events:

 

(1)           any person or party not currently
affiliated with Centro gains control of fifty percent plus one share of Centro’s
issued Stapled Securities; however, that an event described in this paragraph (1) shall
not be deemed to be a Change in Control if any of following becomes such a
beneficial owner: (A) the Company or any majority-owned entity (provided,
that this exclusion applies solely to the ownership levels of the Company or
the majority-owned entity), (B) any tax-qualified, broad-based employee
benefit plan sponsored or maintained by the Company or any majority-owned
entity, (C) any underwriter temporarily holding securities pursuant to an
offering of such securities, or (D) Executive or any group of persons
including Executive (or any entity controlled by Executive or any group of
persons including Executive);

 

(2)           Centro sells, transfers or otherwise
disposes of more than a fifty percent share of CWMJV or any Centro Affiliate
then employing Executive or more than 50% of the assets of or aggregate interests
in Centro US provided that the acquisition of ownership or such assets by
another entity within Centro or affiliated with Centro or the assignment of
Executive to work for such entity or Affiliate shall not be considered a Change
in Control, but shall still be subject to the other provisions of Section 7(d) above.

 

If a Change in Control
occurs, regardless of whether Executive elects to terminate his employment for
Good Reason, all unvested stock options and restricted stock grants received by
Executive, regardless of any vesting conditions or performance and/or time
hurdles, shall automatically vest 100% upon the occurrence of such Change in
Control. In addition, in the event that Executive’s employment is terminated by
CWMJV without Cause in contemplation of a Change in Control, then
notwithstanding any other provision of this Agreement regarding the vesting of
stock options and restricted stock grants, then all unvested stock options and
restricted stock grants received by Executive, regardless of any vesting
conditions or performance and/or time hurdles, shall automatically vest 100%
upon such employment termination.

 

7

 

(e)           Without Good Reason. Executive shall
have the right to terminate his employment hereunder without Good Reason by
providing CWMJV with a Notice of Termination, and such termination shall not in
and of itself be, nor shall it be deemed to be, a breach of this Agreement.

 

8.             Termination Procedure.

 

(a)           Notice of Termination. Any termination
of Executive’s employment by CWMJV or by Executive during the Term (other than
termination pursuant to Section 7(a)) shall be communicated by written
Notice of Termination to the other party hereto in accordance with Section 16.
For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the
specific termination provision in this Agreement relied upon and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of Executive’s employment under the provision so
indicated.

 

(b)           Date of Termination. “Date of Termination” shall
mean (i) if Executive’s employment is terminated by his death, the date of
his death, (ii) if Executive’s employment is terminated pursuant to Section 7(b),
thirty (30) days after Notice of Termination (provided that Executive shall not
have returned to the substantial performance of his duties on a full-time basis
during such thirty (30) day period), or (iii) if Executive’s employment is
terminated for any other reason (other than for Cause), the date on which a
Notice of Termination is given or any later date (within thirty (30) days after
the giving of such notice) set forth in such Notice of Termination.

 

9.             Compensation Upon Termination or
During Disability. In the event Executive is disabled or his employment
terminates during the Term, CWMJV shall provide Executive with the payments and
benefits set forth below; provided, however, as a specific condition to being
entitled to any payments or benefits under this Section 9, Executive must
have resigned all offices and positions with Centro and all of its subsidiaries
and Affiliates and must have joined CWMJV in having executed a mutual release
of Centro, CWMJV and their respective Affiliates, in the form attached hereto
as Exhibit C. Executive acknowledges and agrees that the payments set
forth in this Section 9 constitute liquidated damages for termination of
his employment during the Term.

 

(a)           Termination By CWMJV Without Cause or By Executive
for Good Reason. If Executive’s employment is terminated by
CWMJV without Cause or by Executive for Good Reason:

 

(i)            CWMJV shall pay to Executive his
Base Salary and accrued vacation pay through the Date of Termination, as soon
as practicable following the Date of Termination; and

 

(ii)           CWMJV shall pay to Executive as soon
as practicable following the Date of Termination, a lump-sum payment equal to
twelve months of his Base Salary and the average STI received by Executive for
the two (2) preceding fiscal years ending on or prior to termination or,
where necessary to calculate the average due to a termination prior to the
completion of two (2) fiscal years with 

 

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CWMJV, those bonus payments
received by Executive from New Plan Excel Realty Trust, Inc. during the
relevant period required to permit a two (2) year average calculation;

 

(iii)          CWMJV shall reimburse Executive
pursuant to Section 6(d) for reasonable expenses incurred, but not
paid prior to such termination of employment;

 

(iv)          Executive shall be entitled to any
other rights, compensation and/or benefits as may be due to Executive in
accordance with the terms and provisions of any agreements, plans or programs
of CWMJV;

 

(v)           Unless otherwise provided herein,
unvested stock options and restricted stock granted to Executive that vest
based on performance shall be forfeited immediately unless the Centro Board
decides otherwise;

 

(vi)          CWMJV shall maintain in full force and
effect, for the continued benefit of Executive, his spouse and his dependents
for a period of one (1) year following the Date of Termination the
medical, hospitalization, dental, and life insurance programs in which
Executive, his spouse and his dependents were participating immediately prior
to the Date of Termination at the level in effect and upon substantially the
same terms and conditions (including without limitation contributions required
by Executive for such benefits) as existed immediately prior to the Date of
Termination; provided, that if Executive, his spouse or his dependents cannot
continue to participate in the CWMJV programs providing such benefits, CWMJV
shall arrange to provide Executive, his spouse and his dependents with the
economic equivalent of such benefits which they otherwise would have been
entitled to receive under such plans and programs (“Continued Benefits”), provided, that such Continued Benefits shall
terminate on the date or dates Executive receives substantially equivalent
coverage and benefits, without waiting period or pre-existing condition
limitations, under the plans and programs of a subsequent employer (such
coverage and benefits to be determine on a coverage-by-coverage, or
benefit-by-benefit, basis);

 

(vii)         CWMJV shall pay to Executive as soon as
practicable following the Date of Termination the First Payment and the Second
Payment to the extent either has not already been received by the Executive.

 

The foregoing notwithstanding, the total of the
severance payments payable under this Section 9(a) shall be reduced
to the extent the payment of such amounts would cause Executive’s total
termination benefits (as determined by Executive’s tax advisor) to constitute
an “excess”
parachute payment under Section 280G of the Internal Revenue Code of 1986,
as amended (the “Code”)
and by reason of such excess parachute payment Executive would be subject to an
excise tax under Section 4999(a) of the Code, but only if Executive
determines that the after-tax value of the termination benefits calculated with
the foregoing restriction exceed those calculated without the foregoing
restriction.

 

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(b)                                 Cause or By Executive Without Good Reason. If Executive’s employment is terminated by CWMJV for Cause
or by Executive (other than for Good Reason):

 

(i)            CWMJV shall pay Executive his Base
Salary and, to the extent required by law or CWMJV vacation policy, his accrued
vacation pay through the Date of Termination, as soon as practicable following
the Date of Termination; and

 

(ii)           CWMJV shall reimburse Executive
pursuant to Section 6(d) for reasonable expenses incurred, but not
paid prior to such termination of employment, unless such termination resulted
from a misappropriation of funds; and

 

(iii)          Executive shall be entitled to any
other rights, compensation and/or benefits as may be due to Executive in
accordance with the terms and provisions of any agreements, plans or programs
of CWMJV;

 

(c)           Disability. During any period that
Executive fails to perform his duties hereunder as a result of incapacity due
to physical or mental illness (“Disability Period”), Executive shall continue to receive his full
Base Salary set forth in Section 6(a) until his employment is
terminated pursuant to Section 7(b). In the event Executive’s employment
is terminated for Disability pursuant to Section 7(b):

 

(i)            CWMJV shall pay to Executive his
Base Salary and accrued vacation pay through the Date of Termination, as soon
as practicable following the Date of Termination, and continued Base Salary (as
provided for in Section 6(a)) for six (6) months; and

 

(ii)           CWMJV shall reimburse Executive
pursuant to Section 6(d) for reasonable expenses incurred, but not
paid prior to such termination of employment;

 

(iii)          Unvested stock options and restricted
stock granted to Executive that vest based on performance shall be forfeited
immediately unless the Centro Board decides otherwise;

 

(iv)          Executive shall be entitled to any
other rights, compensation and/or benefits as may be due to Executive in
accordance with the terms and provisions of any agreements, plans or programs
of the CWMJV;

 

(v)           CWMJV shall pay to Executive the
First Payment and the Second Payment-to the extent either has not already been
received by the Executive.

 

(d)           Death. If Executive’s employment is
terminated by his death:

 

(i)            CWMJV shall pay in a lump sum to
Executive’s beneficiary, legal representatives or estate, as the case may be,
Executive’s Base Salary through the Date of Termination and one (1) times
Executive’s annual rate of Base Salary;

 

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(ii)           CWMJV shall reimburse Executive’s
beneficiary, legal representatives, or estate, as the case may be, pursuant to Section 6(d) for
reasonable expenses incurred, but not paid prior to such termination of
employment;

 

(iii)          Unvested stock options and restricted
stock granted to Executive that vest based on performance shall be forfeited
immediately unless the Centro Board decides otherwise;

 

(iv)          Executive’s beneficiary, legal
representatives or estate, as the case may be, shall be entitled to any other
rights, compensation and benefits as may be due to any such persons or estate
in accordance with the terms and provisions of any agreements, plans or
programs of CWMJV;

 

(v)           CWMJV shall pay to Executive the
First Payment and the Second Payment-to the extent either has not already been
received by the Executive.

 

10.           Retention Bonus. CWMJV agrees
to pay the Executive $3,000,000 (Three Million Dollars) in consideration of
Executive entering into this Agreement (the “Retention Bonus”). The Retention Bonus shall be payable in two
parts; (i) fifty percent (50%) of the Retention Bonus shall be paid within
5 business days of the date of execution of this Agreement (the “First Payment”), subject to
the forfeiture rule described in the next sentence, and (ii) except
for such earlier payment as may be required by Sections 9(a), 9(c) or
9(d), the remaining fifty percent (50%) of the Retention Bonus shall be paid on
April 20, 2009 (the “Second Payment”). If Executive terminates his employment under Section 9(b) prior
to October 19, 2007, Executive promptly shall repay the amount of the
First Payment (and provided Executive has not terminated his employment under Section 9(b) prior
to October 19, 2007, the First Payment shall be irrevocable and not
subject to any repayment after October, 19, 2007). In addition, if Executive
terminates employment under Section 9(b) prior to April 20,
2009, Executive shall forfeit the Second Payment. In addition, in the event
that CWMJV issues a notice to Executive indicating that CWMJV has elected not
to renew or extend the Term for an Additional Period such that this Agreement
will expire upon the one year anniversary of the date of this Agreement, then,
in addition to the other rights and benefits afforded Executive pursuant to Section 9(a),
the Second Payment shall be due and payable simultaneously with CWMJV providing
such non-renewal/non-extension notice.

 

11.           Mitigation. Executive shall
not be required to mitigate amounts payable under this Agreement by seeking
other employment or otherwise, and there shall be no offset against amounts due
Executive under this Agreement on account of subsequent employment. Additionally,
amounts owed to Executive under this Agreement shall not be offset by any
claims CWMJV may have against Executive, and CWMJV’s obligation to make the
payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any other circumstances,
including, without limitation, any counterclaim, recoupment, defense or other
right which CWMJV may have against Executive or others.

 

11

 

12.           Confidential
Information; Ownership of Documents; Non-Competition.

 

(a)           Confidential Information.  Executive shall hold in a fiduciary capacity
for the benefit of the Company all trade secrets and confidential information,
knowledge or data relating to the Company and its businesses and investments,
which shall have been obtained by Executive during Executive’s employment by
CWMJV and which is not generally available public knowledge (other than by acts
by Executive in violation of this Agreement). 
Except as may be required or appropriate in connection with his carrying
out his duties under this Agreement, Executive shall not, without the prior
written consent of CWMJV or as may otherwise be required by law or any legal
process, or as is necessary in connection with any adversarial proceeding
against the Company (in which case Executive shall use his reasonable best
efforts in cooperating with the Company in obtaining a protective order against
disclosure by a court of competent jurisdiction), communicate or divulge any
such trade secrets, information, knowledge or data to anyone other than the
Company and those designated by the Company or on behalf of the Company in the
furtherance of its business or to perform duties hereunder.

 

(b)           Removal of Documents; Rights to Products.  All records, files, drawings, documents,
models, equipment, and the like relating to the Company’s business, which
Executive has control over shall not be removed from the Company’s premises
without its written consent, unless such removal is in the furtherance of the
Company’s business or is in connection with Executive’s carrying out his duties
under this Agreement and, if so removed, shall be returned to the Company
promptly after termination of Executive’s employment hereunder, or otherwise
promptly after removal if such removal occurs following termination of
employment.  Executive shall assign to
the Company all rights to trade secrets and other products relating to the
Company’s business developed by him alone or in conjunction with others at any
time while employed by the Company.

 

(c)           Injunctive Relief.  In the event of a breach or threatened breach
of this Section 12, Executive agrees that CWMJV shall be entitled to
injunctive relief in a court of appropriate jurisdiction to remedy any such
breach or threatened breach, Executive acknowledging that damages would be
inadequate and insufficient.

 

(d)           Continuing Operation.  Except as specifically provided in this Section 12,
the termination of Executive’s employment or of this Agreement shall have no
effect on the continuing operation of this Section 12.

 

13.           Indemnification.

 

(a)           General.  CWMJV agrees that if Executive is made a
party or a threatened to be made a party to any action, suit or proceeding,
whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of
the fact that Executive is or was a trustee, director or officer of the Company
or any subsidiary of the Company or is or was serving at the request of the
Company or any subsidiary as a trustee, director, officer, member, employee or
agent of another corporation or a partnership, joint venture, trust or other
enterprise, including, without limitation, service with respect to employee
benefit plans, whether of not the basis of such Proceeding is alleged action in
an official capacity as a trustee, director, officer, member,

 

12

 

employee or agent while, serving as a
trustee, director, officer, member, employee or agent, Executive shall be
indemnified and held harmless by the Company to the same extent as other
officers and directors, as in effect from time to time, against all Expenses
incurred or suffered by Executive in connection therewith, and such
indemnification shall continue as to Executive even if Executive has ceased to
be an officer, director, trustee or agent, or is no longer employed by the
Company and shall inure to the benefit of his heirs, executors and
administrators.

 

(b)           Expenses.  As used in this Agreement, the term “Expenses” shall include,
without limitation, damages, losses, judgments, liabilities, fines, penalties,
excise taxes, settlements, and costs, attorneys’ fees, accountants’ fees, and
disbursements and costs of attachment or similar bonds, investigations, and any
expenses of establishing a fight to indemnification under this Agreement.

 

(c)           Enforcement.  If a claim or request under this Agreement is
not paid by CWMJV or on its behalf, within thirty (30) days after a written
claim or request has been received by CWMJV, Executive may at any time
thereafter bring suit against CWMJV to recover the unpaid amount of the claim
or request and, if Executive prevails in respect to the material issues,
Executive shall be entitled to be paid also the Expenses of prosecuting such suit.  All obligations for indemnification hereunder
shall be subject to, and paid in accordance with, applicable New York law.

 

(d)           Partial Indemnification.  If Executive is entitled under any provision
of this Agreement to indemnification by CWMJV for some or a portion of any
Expenses, but not, however, for the total amount thereof, CWMJV, shall
nevertheless indemnify Executive for the portion of such Expenses to which
Executive is entitled.

 

(e)           Advances of Expenses.  Expenses incurred by Executive in connection
with any Proceeding shall be paid by CWMJV in advance upon request of Executive
that CWMJV pay such Expenses; but only in the event that Executive shall have
delivered in writing to CWMJV (i) an undertaking to reimburse CWMJV for
Expenses with respect to which Executive is not entitled to indemnification and
(ii) an affirmation of his good faith belief that the standard of conduct
necessary for indemnification by CWMJV has been met.

 

(f)            Notice of Claim.  Executive shall give to CWMJV notice of any claim
made against him for which indemnification will or could be sought under this
Agreement.  In addition, Executive shall
give CWMJV such information and cooperation as it may reasonably require and as
shall be within Executive’s power and at such times and places as are
convenient for Executive.

 

(g)           Defense of Claim.  With respect to any Proceeding as to which
Executive notifies CWMJV of the commencement thereof.

 

(i)            CWMJV will be entitled to
participate therein at its own expense;

 

and

 

(ii)           Except as otherwise provided below,
to the extent that it may wish, CWMJV will be entitled to assume the defense
thereof, with counsel reasonably 

 

13

 

satisfactory to
Executive, which in CWMJV’s sole discretion may be regular counsel to CWMJV and
may be counsel to other officers and directors of CWMJV or any subsidiary.  Executive also shall have the right to employ
his own counsel in such action, suit or proceeding if he reasonably concludes
that failure to do so would involve a conflict of interest between CWMJV and
Executive, and under such circumstances the fees and expenses of such counsel
shall be at the expense of CWMJV.

 

(iii)          CWMJV shall not be liable to indemnify
Executive under this Agreement for any amounts paid in settlement of any action
or claim effected without its written consent. 
CWMJV shall not settle any action or claim in any manner which would
impose any penalty or limitation on Executive without Executive’s written
consent.  Neither CWMJV nor Executive
will unreasonably withhold or delay their consent to any proposed settlement.

 

(h)           Non-exclusivity.  The right to indemnification and the payment
of expenses incurred in defending a Proceeding in advance of its final
disposition conferred in this Section 13 shall not be exclusive of any
other right which Executive may have or hereafter may acquire under any
statute, provision of the declaration of trust or certificate of incorporation
or by-laws of CWMJV or any subsidiary, agreement, vote of shareholders or
disinterested directors or trustees or otherwise.

 

14.           Disputes.

 

Any claim arising out of or relating to this
Agreement, any other agreement between the Executive and Company or its
Affiliates, the Executive’s employment with or any termination thereof
(collectively, “Covered Claims”) shall (except to the extent otherwise
provided in Section 12(c) hereof with respect to certain requests for
injunctive relief) be resolved by binding confidential arbitration, to be held
in New York, New York in accordance with the Commercial Arbitration Rules (and
not the National Rules for Resolution of Employment Disputes) of the
American Arbitration Association and this Section 14 and each of CWMJV,
Centro and Executive submits to jurisdiction in New York, New York for such
arbitration.  Judgment upon the award
rendered by the arbitrator(s) may be entered in any court having jurisdiction
thereof.  CWMJV shall reimburse Executive
for all legal fees and expenses reasonably incurred by Executive in connection
with such contest or dispute, but only if Executive prevails in respect of the
material issues in dispute of Executive’s claims brought and pursued in
connection with such contest or dispute. 
Such reimbursement shall be made as soon as practicable following the final
resolution of such contest or dispute to the extent CWMJV receives reasonable
written evidence of such fees and expenses.

 

15.           Successors;
Binding Agreement.

 

(a)           Company’s Successors.  No rights or obligations of CWMJV under this
Agreement may be assigned or transferred except that CWMJV will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of CWMJV
or Centro to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that CWMJV and/or 

 

14

 

Centro would be required to perform it if no
such succession had taken place.  As used
in this Agreement, “Company” or “CWMJV” shall mean the Company or CWMJV, respectively, as
herein before defined and any successor to its business and/or assets (by
merger, purchase or otherwise) which executes and delivers the agreement
provided for in this Section 15 or which otherwise becomes bound by all
the terms and provisions of this Agreement by operation of law.

 

(b)           Executive’s Successors.  No rights or obligations of Executive under
this Agreement may be assigned or transferred by Executive other than his
rights to payments or benefits hereunder, which may be transferred only by will
or the laws of descent and distribution. 
Upon Executive’s death, this Agreement and all rights of Executive
hereunder shall inure to the benefit of and be enforceable by Executive’s
beneficiary or beneficiaries, personal or legal representatives, or estate, to
the extent any such person succeeds to Executive’s interests under this
Agreement.  Executive shall be entitled
to select and change a beneficiary or beneficiaries to receive any benefit or
compensation payable hereunder following Executive’s death by giving CWMJV
written notice thereof.  In the event of
Executive’s death or a ,judicial determination of his incompetence, reference
in this Agreement to Executive shall be deemed, where appropriate, to refer to
his beneficiary(ies), estate or other legal representative(s).  If Executive should die following his Date of
Termination while any amounts would still be payable to him hereunder if he had
continued to live, all such amounts unless otherwise provided herein shall be
paid in accordance with the terms of this Agreement to such person or persons
so appointed in writing by Executive, or otherwise to his legal representatives
or estate.

 

16.           Notice.  All notices or other communications which are
required or permitted hereunder shall be in writing and sufficient if delivered
personally, or sent by nationally-recognized, overnight courier or by
registered or certified mail, return receipt requested and postage prepaid,
addressed as follows:

 

If to Executive:

 

Mr. Glenn
J. Rufrano

c/o Centro Watt Management Joint Venture 2 LP

420 Lexington Avenue

7th Floor

New York, NY 10070

 

If to Centro:

 

Centro
Properties Group

Level 3, 235 Springvale Road

Glen Waverley, VIC 3150

AUSTRALIA

Attention:  Andrew T. Scott

 

15

 

If to CWMJV:

 

Centro Watt
Management Joint Venture 2 LP

420 Lexington Avenue

7th Floor

New York, NY 10070

Attention:  Steven F. Siegel

 

or to such
other address as any party may have furnished to the others in writing in
accordance herewith.  All such notices
and other communications shall be deemed to have been received (a) in the
case of personal delivery, on the date of such delivery, (b) in the case
of delivery by nationally-recognized, overnight courier, on the business day
following dispatch and (c) in the case of mailing, on the third business
day following such mailing.

 

17.           Miscellaneous.  No provisions of this Agreement may be
amended, modified, or waived unless such amendment or modification is agreed to
in writing signed by Executive and by a duly authorized officer of CWMJV, and
such waiver is set forth in writing and signed by the party to be charged.  No waiver by either party hereto at any time
of any breach by the other party hereto of any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.  The
respective rights and obligations of the parties hereunder of this Agreement
shall survive Executive’s termination of employment and the termination of this
Agreement to the extent necessary for the intended preservation of such rights
and obligations.  The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of New York without regard to its conflicts
of law principles.

 

18.           Jurisdiction.  Subject to the obligations with respect to
arbitration as provided in Section 14 hereof, CWMJV, Centro and Executive
each submits to the jurisdiction of any New York State Court or Federal Court
of the United States of America sitting in the borough of Manhattan, and any
appellate court from any such court, in any suit, action or proceeding arising
out of or relating to this Agreement, or for recognition or enforcement of any
judgment, and each hereby agrees that all claims in respect of any such suit,
action or proceeding shall be brought in and may be heard and determined in
such New York State Court or, to the extent permitted by law, in such Federal
Court.  CWMJV, Centro and Executive each
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Agreement in any New
York State Court or Federal Court sitting in the borough of Manhattan.

 

19.           Validity.  The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in
full force and effect.

 

16

 

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

 

21.           Entire Agreement.  This Agreement sets forth the entire
agreement of the parties hereto in respect of the subject matter contained
herein and supersede all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, director, employee or representative of any party hereto in respect of
such subject matter.  Any prior agreement
of the parties hereto in respect of the subject matter contained herein is
hereby terminated and canceled.

 

22.           Withholding.  All payments hereunder shall be subject to
any required withholding of Federal, state and local taxes pursuant to any
applicable law or regulation.

 

23.           Noncontravention.  CWMJV represents that CWMJV is not prevented
from entering into, or performing this Agreement by the terms of any law,
order, rule or regulation, its by-laws or certificate of incorporation, or
any agreement to which it is a party, other than which would not have a
material adverse effect on CWMJV’s ability to enter into or perform this
Agreement.  Executive represents to CWMJV
that he is not a party to any contract that would preclude him from accepting
employment as Chief Executive Officer of Centro US and he has no reason to
believe that accepting employment as Chief Executive Officer of Centro US would
result in a disclosure of any confidential information of any prior employer.

 

24.           Section Headings.  The section headings in this Agreement are
for convenience of reference only, and they form no part of this Agreement and
shall not affect its interpretation.

 

25.           Centro Properties
Group.  Centro is executing this
Agreement as a guarantor of all obligations of CWMJV hereunder and by its
execution hereof agrees to all of the terms and conditions of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the date first above written.

 

 

	
   

  	
  CENTRO
  PROPERTIES GROUP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  T. Scott

  
	
   

  	
   

  	
  Name:

  	
  Andrew T.
  Scott

  
	
   

  	
   

  	
  Title:   Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CENTRO WATT
  MANAGEMENT JOINT

  VENTURE 2 LP

  

 

17

 

	
   

  	
  By:

  	
  /s/ Andrew
  T. Scott

  
	
   

  	
   

  	
  Name:

  	
  Andrew T.
  Scott

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
  Centro Properties
  Group

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Glenn J.
  Rufrano

  
	
   

  	
  GLENN J.
  RUFRANO

  
					

 

18Exhibit 10.43

 

EMPLOYMENT AGREEMENT

 

AGREEMENT (“Agreement”), dated as of July 23,
2007 (“Effective
Date”) by and among Centro Watt Management Joint Venture 2 LP, (“CWMJV”),
Centro Properties Group, an entity listed on the Australian Securities Exchange
(“Centro”)
(collectively referred to as “Company”) and Dean Bernstein (“Executive”).

 

R  E  C  I  T
A  L

 

CWMJV desires to employ Executive as of the
Effective Date, on the terms and conditions set forth in this Agreement, and
Executive desires to be so employed.

 

AGREEMENT

 

IN CONSIDERATION of the premises and the
mutual covenants set forth below, the parties hereby agree as follows:

 

1.             Employment.  CWMJV hereby agrees to employ Executive and
Executive hereby agrees to accept such employment, on the terms and conditions
hereinafter set forth.

 

2.             Prior Agreements. 
The Parties hereby agree that this Agreement terminates and supersedes
the Employment Agreement between Executive and New Plan Realty Trust, Inc.
dated as of September 25, 1998 (“Prior
Employment Agreement”) and that any provisions of the Prior
Employment Agreement that specifically survive closing are hereby waived and
deemed to be null and void and no force or effect.  Accordingly, as of the Effective Date,
neither the Company (or Centro NP LLC, the corporate successor to New Plan
Excel Realty Trust, Inc.) nor the Executive shall have any rights or
obligations pursuant to the Prior Employment Agreement; provided, however, that
prior service with New Plan Realty Trust, Inc. will be recognized for all
relevant purposes including, without limitation, Sections 6(e) and (f) of
this Agreement.

 

3.             Term. 
Executive’s employment by CWMJV hereunder shall commence on the
Effective Date and shall continue for one (1) year (“Original Term”).  The term of employment hereunder shall
thereafter be automatically extended for an unlimited number of additional one
year periods (each, an “Additional Term”,
and together with the Original Term and any Additional Terms, the “Term”)
unless, at least 180 days prior to the expiration of the Term, either the
Executive or the Company gives written notice to the other that it is electing
not to so extend the Term. 
Notwithstanding the foregoing, the Term may be earlier terminated in
strict accordance with the provisions of Section 7 hereof, but subject to
the provisions of Section 9 hereof. 
At the time Executive ceases to be a full-time employee of CWMJV, the
Executive 

 

 

agrees that he shall resign
from any office he holds with Company and its subsidiaries and any entity in
control of, controlled by or under common control with the Company or in which
the Company owns any common or preferred stock or any ownership interest or any
entity in control of, controlled by or under common control with such entity (“Affiliate”).

 

4.             Position and Duties.

 

Executive
Vice President – Acquisitions and Disposals. 
During the Term, the Executive shall serve as the Executive Vice
President – Acquisitions and Disposals of all United States operations of
Centro and its Affiliates (“Centro US”); shall have all authorities, duties and
responsibilities customarily exercised by an individual serving as the
Executive Vice President – Acquisitions and Disposals of an entity of the size
and nature of Centro US; shall have such other duties, authorities and responsibilities
as the Centro Chief Executive Officer may from time to time reasonably
designate, consistent with the foregoing; and shall report directly to the
Centro Chief Executive Officer. 
Executive will comply with the Company’s policies including, but not
limited to, the Code of Conduct and the Employee Trading in Securities
Policy.  During the Term, the Executive
shall devote substantially all of his business time and efforts to the business
and affairs of Centro US (unless otherwise directed by the Centro US CEO);
however, nothing shall preclude the Executive from the following: (i) serving
on the boards of a reasonable number of non-competing business entities, trade
associations and charitable organizations, (ii) engaging in charitable
activities and community affairs, (iii) accepting and fulfilling a
reasonable number of speaking engagements, and (iv) managing his personal
financial and legal affairs provided that such activities do not either
individually or in the aggregate interfere with the proper performance of his
duties and responsibilities hereunder and are not likely to be contrary to the
Company’s interests.  The Executive has
disclosed to the Company a list of boards of which he is currently a member,
and the Company has consented to his continued membership on such boards.  The Executive shall give prior written notice
before joining any new business board on or after the Effective Date.

 

5.             Place of Performance.  The principal place of employment of
Executive shall be at the Company’s US corporate offices in New York, New York.

 

6.             Compensation and Related Matters.

 

(a)           Salary.  During the Term, CWMJV shall pay Executive an
annual base salary of not less than US$338,600 (“Base Salary”).  Executive’s Base Salary shall be paid in
approximately equal installments in accordance with CWMJV’s customary payroll
practices.  If Executive’s Base Salary is
increased, such increased Base Salary shall then constitute the Base Salary for
all purposes of this Agreement.

 

(b)           Short Term Incentive-Bonus.  Executive shall be eligible for an annual
short term incentive-bonus (“STI”) based on the achievement of certain financial
goals.  For the financial 

 

2

 

year
ending June 30, 2008, fifty percent of the STI will be based on
achievement of Centro Distributions per Security target and maximum goals (as
defined by the Centro Board) and fifty percent of the STI will be based on
achievement of Centro US Funds from Operations target and maximum goals (as
defined by the Centro CEO and the Centro US CEO).  The target and maximum goals for the
financial year ending June 30, 2008 shall be established prior to July 31,
2007.  If a target goal is achieved,
Executive shall receive a STI of 30% of Base Salary for that STI measure.  If a maximum goal is achieved, Executive
shall receive a STI of 42.5% of Base Salary for that STI measure.  If performance for a measure between target
goal and maximum goal is achieved, Executive shall receive a pro rata STI
between 30% and 42.5% of Base Salary for that measure.  Any payment of a prorated STI, if target for
a measure is not achieved, shall be subject to the discretion of the Centro
Board.  For the financial year ending June 30,
2007, Executive shall be eligible for a guaranteed STI payment (the “Stub STI Payment”)
between US$50,000 and US$70,000, the amount of such guaranteed STI within such
range to be at the discretion of the Centro Board payable by July 31,
2007.  For financial years commencing
after June 30, 2008, the Centro Board may change the basis upon which STI
may be calculated, but if the target is achieved the Executive shall continue
to receive an STI payout of a total of 60% of Base Salary and if the maximum
goal is achieved the payout shall be a total of 85% of Base Salary (the “STI Range”).  If Executive’s employment is terminated for
any reason prior to the end of a financial year, he shall not be entitled to a
prorated STI unless otherwise specifically agreed by the Centro Board.  Notwithstanding anything contained herein to
the contrary, a change in the basis upon which STI may be calculated after June 30,
2008 (but not a reduction to the STI Range) shall not constitute a breach or
violation of this Agreement by the Company or constitute Good Reason for
Executive to terminate his employment. 
With the exception of the STI for the financial year ending June 30,
2007, all STI amounts will be paid at the first appropriate opportunity after June 30
of that financial year, but not later than July 31 of that same calendar
year.

 

(c)           Long Term Incentive Compensation.  Executive shall from time to time be invited
to participate in the Centro Employee Security Plan, the Centro Executive
Option Plan or other stock or option related plans that may be developed in the
future.  The Centro Board shall
periodically review the nature and extent of such plans in line with comparable
market practice.

 

a)                                      Attached hereto as Exhibit A is
an invitation from the Centro Board with respect to a grant of stock options of
Centro securities to the value of US$315,000. 
Upon submission of the invitation by the Executive to the Company,
Executive shall be granted such options and receive a written grant of stock
options consistent with the terms of Exhibit A (the “Option Invitation”).

 

b)                                     Attached hereto as Exhibit B is
an invitation from the Centro Board with respect to a grant of restricted
shares of Centro to the value of US$315,000. 
Upon submission of the invitation by the Executive to the Company,
Executive shall be granted such 

 

3

 

restricted shares and
receive a written grant of restricted shares consistent with the terms of Exhibit B
(the “Stock
Invitation”).

 

(d)           Expenses.  CWMJV shall promptly reimburse Executive for
all reasonable business expenses upon the presentation of reasonably itemized
statements of such expenses in accordance with CWMJV’s policies and procedures
now in force or as such policies and procedures may be modified with respect to
all senior executive officers of CWMJV.

 

(e)           Vacation.  Executive shall be entitled to the number of
weeks of vacation per year provided to the CWMJV’s senior executive officers,
but in no event less than four (4) weeks annually.

 

(f)            Welfare Pension and Incentive Benefit Plans.  During the Term, the Executive shall be
entitled to participate in all employee benefit plans, programs and
arrangements made available to other CWMJV senior executives generally,
including, without limitation, pension, income deferral, savings, 401 (k), and
other retirement plans or programs, medical, dental, vision, prescription drug,
hospitalization, short-term and long-term disability and life insurance plans
and programs, accidental death and dismemberment protection, travel accident
insurance, and any other employee benefit plan, program or arrangement that may
from time to time be made available to other CWMJV senior executives generally,
including any plans, programs or arrangements that supplement the above-listed
types of plans, programs or arrangements, whether funded or unfunded, subject
to the terms of the applicable plan documents and generally applicable CWMJV
policies, in each case on terms and conditions that are no less favorable to
him than those applying to other CWMJV senior executives generally.  To the extent that post-retirement welfare
and other benefits then exist, the Executive shall be entitled to
post-retirement welfare and other benefits on terms and conditions that are no
less favorable to him than those applying to other CWMJV senior executives
generally.  Nothing in this Section 6(f) shall
be construed to require CWMJV to establish or maintain any particular employee
or post-retirement benefit plan, program or arrangement except as expressly set
forth elsewhere in this Agreement.  CWMJV
may, to the extent consistent with the foregoing, alter, modify, supplement or
delete its employee and post-retirement benefit plans at any time as it sees
fit without recourse by the Executive, subject to the terms of this Section 6(f).

 

(g)           No Hedging.  During the Term, Executive will not in any
way attempt to limit the financial risk with respect to stock options or
restricted stock which are not vested by means of any hedging (including
without limitation, selling short) or other techniques.

 

7.             Termination. 
Notwithstanding the foregoing, Executive’s employment hereunder may be
terminated during the Term under the following circumstances:

 

(a)           Death.  Executive’s employment hereunder shall
terminate upon his death.

 

4

 

(b)           Disability.  If, as a result of Executive’s incapacity due
to physical or mental illness, Executive shall have been substantially unable
to perform his duties hereunder for an entire period of one hundred twenty
(120) consecutive days, and within thirty (30) days after written Notice of
Termination (as defined in Section 8(a)) is given after such one hundred
twenty (120) day consecutive period, Executive shall not have returned to the
substantial performance of his duties on a full-time basis, CWMJV shall have
the right to terminate Executive’s employment hereunder for “Disability”,
and such termination in and of itself shall not be, nor shall it be deemed to
be, a breach of this Agreement, but shall be subject to the terms of Section 9(c).

 

(c)           Cause.  CWMJV shall have the right to terminate
Executive’s employment for Cause, and such termination in and of itself shall
not be, nor shall it be deemed to be, a breach of this Agreement; provided that
no termination of the Executive’s employment hereunder for Cause shall be
effective as a termination for Cause unless the provisions of this Section shall
first have been complied with.  The
Executive shall be given written notice by the Centro Chief Executive Officer
of the intention to terminate him for Cause (the “Notice of Intention”).  The Notice of Intention shall state in
reasonable detail the particular circumstances that constitute the grounds on
which the proposed termination for Cause is based.  The Executive shall have 10 days after
receiving the Notice of Intention in which to cure the purported grounds for
termination asserted therein. 
Termination for Cause shall be effective immediately upon the Centro
Chief Executive Officer’s issuance to Executive of a written Termination for
Cause Notice in the event that Executive fails to cure the purported grounds
for termination within such 10 day period. 
Any allegation that Cause existed, or that cure was not achieved, shall
be subject to review, at the Executive’s election, through arbitration in accordance
with Section 14 hereof.

 

For purposes of this Agreement; CWMJV shall
have “Cause”
to terminate Executive’s employment upon Executive’s:

 

(i)            conviction of, or plea of guilty or
nolo contendere to, a felony; or

 

(ii)           willful and continued failure to use
reasonable best efforts to substantially perform his duties hereunder (other
than such failure resulting from Executive’s incapacity due to physical or
mental illness or subsequent to the issuance of a Notice of Termination by
Executive for Good Reason (as defined in Section 7(d)) after demand for
substantial performance is delivered by CWMJV in writing that specifically
identifies the manner in which CWMJV believes Executive has willfully and
continually failed to use reasonable best efforts to substantially perform his
duties hereunder; or

 

(iii)          willful misconduct that has a
materially adverse effect on the Company or to any Affiliate.

 

5

 

For purposes of this Section 7(c), no act, or failure to act, by
Executive shall be considered “willful” unless committed in bad faith and
without a reasonable
belief that the act or omission was in the best interests of the Company or any
Affiliates thereof; provided, however, that the willful requirement outlined in
paragraphs (ii) or (iii) above shall be deemed to have occurred if
the Executive’s action or non-action continues for more than ten (10) days
after Executive has received written notice of the inappropriate action or
non-action.

 

(d)           Good Reason.  Executive may terminate his employment for “Good Reason”
within thirty (30) days after Executive has actual knowledge of the occurrence,
without the written consent of Executive, of one of the following events that
has not been cured within thirty (30) days after written notice thereof has
been given by Executive to the Company; provided, however, that any allegation
that Good Reason existed, or that cure was not achieved, shall be subject to
review, at CWMJV’s election, through arbitration in accordance with Section 14
hereof:

 

(i)            the assignment to Executive of
duties materially and adversely inconsistent with Executive’s status as Centro
US Chief Executive Officer or a material and adverse alteration in the nature
of the following: Executive’s duties and/or responsibilities, reporting
obligations, titles or authority as Chief Executive Officer;

 

(ii)           a reduction in Executive’s Base
Salary or a failure to pay any such amounts when due;

 

(iii)          a failure by the Company to pay the
Stub STI Payment due June 30, 2007 as described in Section 6(b) by
July 31, 2007;

 

(iv)         a failure by the Company to pay either
the First Payment or the Second Payment pursuant to Section 10 when due;

 

(v)           the relocation of Executive’s own
office location to a location that is more than fifty (50) miles from New York,
New York;

 

(vi)          any purported termination of Executive’s
employment for Cause which is not effected pursuant to the procedures of Section 7(c) (and
for purposes of this Agreement, no such purported termination shall be
effective);

 

(vii)         CWMJV’s failure to pay or provide any
material employee benefits due to be provided to Executive under this Agreement
including, but not limited to, a failure to allow the Executive to participate
in all employee benefit plans, programs and arrangements contemplated under Section 6(f);

 

6

 

(viii)        CWMJV’s failure to provide in all
material respects the indemnification set forth in Section 13 of this
Agreement, or to require any successor to assume and agree to perform this
Agreement as set forth in Section 15 of this Agreement;

 

(ix)           a Change in Control (as defined
below);

 

(x)            a reduction in the STI Range as
provided for in Section 6(b);

 

(xi)           a failure by Centro and/or the Centro
Board to accept the Option Invitation application and/or the Stock Invitation
application (if properly submitted by the Executive) and a failure thereafter
to provide Executive with written documentation evidencing the grant of the
stock options and restricted shares as provided for in Section 6(c) consistent
with the Option Invitation and the Stock Invitation; or

 

(xii)          the issuance of a notice by CWMJV to
Executive indicating that CWMJV has elected not to renew or extend the Term for
an Additional Period.

 

Executive’s right to terminate his employment
hereunder for Good Reason shall not be affected by his incapacity due to
physical or mental illness.  Executive’s
continued employment during the thirty (30) day cure period referred to above
in this paragraph (d) shall not constitute consent to, or a waiver of
rights with respect to, any act or failure to act constituting Good Reason
hereunder.

 

If Executive terminates employment hereunder
for Good Reason and thereafter accepts reemployment by CWMJV or any successor
or Affiliate within six months of such termination of employment, Executive’s
termination of employment shall retroactively not be considered a termination
for Good Reason and Executive shall have no entitlement to any payments or
benefits pursuant to Section 9(a). 
To the extent Executive has already received payments or benefits
pursuant to Section 9(a), Executive shall repay to such payments or
benefits or make other equitable restitution, as the Centro Board shall
determine.  It is the express intent of
the parties that the provisions of this paragraph survive termination of this
Agreement.

 

As provided in Section 2 of this
Agreement, any similar provision contained in the Prior Employment Agreement is
specifically waived and notwithstanding the terms thereof shall not survive the
termination of the Prior Employment Agreement.

 

In furtherance of clause (xii) above, the
issuance of a notice by the Executive, indicating that the Executive has
elected not to renew or extend the Term for an Additional Period shall not constitute
Good Reason.

 

7

 

For purposes of this Agreement, a “Change in Control”
means the occurrence of one of the following events:

 

(1)           any person or party
not currently affiliated with Centro gains control of fifty percent plus one
share of Centro’s issued Stapled Securities; however, that an event described
in this paragraph (1) shall not be deemed to be a Change in Control if any
of following becomes such a beneficial owner: (A) the Company or any
majority-owned entity (provided, that this exclusion applies solely to the
ownership levels of the Company or the majority-owned entity), (B) any
tax-qualified, broad-based employee benefit plan sponsored or maintained by the
Company or any majority-owned entity, (C) any underwriter temporarily
holding securities pursuant to an offering of such securities, or (D) Executive
or any group of persons including Executive (or any entity controlled by
Executive or any group of persons including Executive);

 

(2)           Centro sells,
transfers or otherwise disposes of more than a fifty percent share of CWMJV or
any Centro Affiliate then employing Executive or more than 50% of the assets of
or aggregate interests in Centro US provided that the acquisition of ownership
or such assets by another entity within Centro or affiliated with Centro or the
assignment of Executive to work for such entity or Affiliate shall not be
considered a Change in Control, but shall still be subject to the other
provisions of Section 7(d) above.

 

If a Change in Control occurs,
regardless of whether Executive elects to terminate his employment for Good
Reason, all unvested stock options and restricted stock grants received by
Executive, regardless of any vesting conditions or performance and/or time
hurdles, shall automatically vest 100% upon the occurrence of such Change in
Control.  In addition, in the event that
Executive’s employment is terminated by CWMJV without Cause in contemplation of
a Change in Control, then notwithstanding any other provision of this Agreement
regarding the vesting of stock options and restricted stock grants, then all
unvested stock options and restricted stock grants received by Executive,
regardless of any vesting conditions or performance and/or time hurdles, shall
automatically vest 100% upon such employment termination.

 

(e)           Without Good Reason.  Executive shall have the right to terminate
his employment hereunder without Good Reason by providing CWMJV with a Notice
of Termination, and such termination shall not in and of itself be, nor shall
it be deemed to be, a breach of this Agreement.

 

8.             Termination Procedure.

 

(a)           Notice of Termination.  Any termination of Executive’s employment by
CWMJV or by Executive during the Term (other than termination pursuant to Section 7(a))
shall be 

 

8

 

communicated
by written Notice of Termination to the other party hereto in accordance with Section 16.  For purposes of this Agreement, a “Notice of Termination”
shall mean a notice which shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of Executive’s
employment under the provision so indicated.

 

(b)           Date of Termination.  “Date of Termination” shall mean (i) if Executive’s employment is
terminated by his death, the date of his death, (ii) if Executive’s
employment is terminated pursuant to Section 7(b), thirty (30) days after
Notice of Termination (provided that Executive shall not have returned to the
substantial performance of his duties on a full-time basis during such thirty
(30) day period); or (iii) if Executive’s employment is terminated for any
other reason (other than for Cause), the date on which a Notice of Termination
is given or any later date (within thirty (30) days after the giving of such
notice) set forth in such Notice of Termination.

 

9.             Compensation Upon Termination or During Disability.  In the event Executive is disabled or his
employment terminates during the Term, CWMJV shall provide Executive with the
payments and benefits set forth below; provided, however, as a specific
condition to being entitled to any payments or benefits under this Section 9,
Executive must have resigned all offices and positions with Centro and all of
its subsidiaries and Affiliates and must have joined CWMJV in having executed a
mutual release of Centro, CWMJV and their respective Affiliates, in the form
attached hereto as Exhibit C. 
Executive acknowledges and agrees that the payments set forth in this Section 9
constitute liquidated damages for termination of his employment during the
Term.

 

(a)           Termination By CWMJV Without Cause or By Executive
for Good Reason.  If
Executive’s employment is terminated by CWMJV without Cause or by Executive for
Good Reason:

 

(i)            CWMJV shall pay to Executive his
Base Salary and accrued vacation pay through the Date of Termination, as soon
as practicable following the Date of Termination; and

 

(ii)           CWMJV shall pay to Executive as soon
as practicable following the Date of Termination, a lump-sum payment equal to
twelve months of his Base Salary and the average STI received by Executive for
the two (2) preceding fiscal years ending on or prior to termination or,
where necessary to calculate the average due to a termination prior to the
completion of two (2) fiscal years with CWMJV, those bonus payments
received by Executive from New Plan Excel Realty Trust, Inc. during the
relevant period required to permit a two (2) year average calculation;

 

9

 

(iii)          CWMJV shall reimburse Executive
pursuant to Section 6(d) for reasonable expenses incurred, but not
paid prior to such termination of employment;

 

(iv)          Executive shall be entitled to any other
rights, compensation and/or benefits as may be due to Executive in accordance
with the terms and provisions of any agreements, plans or programs of CWMJV;

 

(v)           Unless otherwise provided herein,
unvested stock options and restricted stock granted to Executive that vest
based on performance shall be forfeited immediately unless the Centro Board
decides otherwise;

 

(vi)          CWMJV shall maintain in full force and
effect, for the continued benefit of Executive, his spouse and his dependents
for a period of one (1) year following the Date of Termination the
medical, hospitalization, dental, and life insurance programs in which
Executive, his spouse and his dependents were participating immediately prior
to the Date of Termination at the level in effect and upon substantially the
same terms and conditions (including without limitation contributions required
by Executive for such benefits) as existed immediately prior to the Date of
Termination; provided, that if Executive, his spouse or his dependents cannot
continue to participate in the CWMJV programs providing such benefits, CWMJV
shall arrange to provide Executive, his spouse and his dependents with the
economic equivalent of such benefits which they otherwise would have been
entitled to receive under such plans and programs (“Continued Benefits”), provided;
that such Continued Benefits shall terminate on the date or dates Executive
receives substantially equivalent coverage and benefits, without waiting period
or pre-existing condition limitations, under the plans and programs of a
subsequent employer (such coverage and benefits to be determine on a
coverage-by-coverage, or benefit-by-benefit, basis);

 

(vii)         CWMJV shall pay to Executive as soon as
practicable following the Date of Termination the First Payment and the Second
Payment to the extent either has not already been received by the Executive.

 

The foregoing notwithstanding, the total of
the severance payments payable under this Section 9(a) shall be
reduced to the extent the payment of such amounts would cause Executive’s total
termination benefits (as determined by Executive’s tax advisor) to constitute
an “excess” parachute payment under Section 280G of the Internal Revenue
Code of 1986, as amended (the “Code”) and by reason of such excess parachute payment
Executive would be subject to an excise tax under Section 4999(a) of
the Code, but only if Executive determines that the after-tax value of the
termination benefits calculated with the foregoing restriction exceed those
calculated without the foregoing restriction.

 

10

 

(b)           Cause or By Executive Without Good Reason.  If Executive’s employment is terminated by
CWMJV for Cause or by Executive (other than for Good Reason):

 

(i)            CWMJV shall pay Executive his Base
Salary and, to the extent required by law or CWMJV vacation policy, his accrued
vacation pay through the Date of Termination, as soon as practicable following
the Date of Termination; and

 

(ii)           CWMJV shall reimburse Executive
pursuant to Section 6(d) for reasonable expenses incurred, but not
paid prior to such termination of employment, unless such termination resulted
from a misappropriation of funds; and

 

(iii)          Executive shall be entitled to any
other rights, compensation and/or benefits as may be due to Executive in
accordance with the terms and provisions of any agreements, plans or programs
of CWMJV;

 

(c)           Disability.  During any period that Executive fails to
perform his duties hereunder as a result of incapacity due to physical or
mental illness (“Disability
Period”), Executive shall continue to receive his full Base Salary
set forth in Section 6(a) until his employment is terminated pursuant
to Section 7(b).  In the event
Executive’s employment is terminated for Disability pursuant to Section 7(b):

 

(i)            CWMJV shall pay to Executive his
Base Salary and accrued vacation pay through the Date of Termination, as soon
as practicable following the Date of Termination, and continued Base Salary (as
provided for in Section 6(a)) for six (6) months; and

 

(ii)           CWMJV shall reimburse Executive
pursuant to Section 6(d) for reasonable expenses incurred, but not
paid prior to such termination of employment;

 

(iii)          Unvested stock options and restricted
stock granted to Executive that vest based on performance shall be forfeited
immediately unless the Centro Board decides otherwise;

 

(iv)          Executive shall be entitled to any
other rights, compensation and/or benefits as may be due to Executive in
accordance with the terms and provisions of any agreements, plans or programs of
the CWMJV;

 

(v)           CWMJV shall pay to Executive the
First Payment and the Second Payment-to the extent either has not already been
received by the Executive.

 

11

 

(d)           Death.  If Executive’s employment is terminated by
his death:

 

(i)            CWMJV shall pay in a lump sum to
Executive’s beneficiary, legal representatives or estate, as the case may be,
Executive’s Base Salary through the Date of Termination and one (1) times
Executive’s annual rate of Base Salary;

 

(ii)           CWMJV shall reimburse Executive’s
beneficiary, legal representatives, or estate, as the case may be, pursuant to Section 6(d) for
reasonable expenses incurred, but not paid prior to such termination of
employment;

 

(iii)          Unvested stock options and restricted
stock granted to Executive that vest based on performance shall be forfeited
immediately unless the Centro Board decides otherwise;

 

(iv)          Executive’s beneficiary, legal
representatives or estate, as the case may be, shall be entitled to any other
rights, compensation and benefits as may be due to any such persons or estate
in accordance with the terms and provisions of any agreements, plans or
programs of CWMJV;

 

(v)           CWMJV shall pay to Executive the
First Payment and the Second Payment-to the extent either has not already been
received by the Executive.

 

10.           Retention Bonus. 
CWMJV agrees to pay the Executive $1,004,500 (One Million, Four Thousand
Five Hundred Dollars) in consideration of Executive entering into this
Agreement (the “Retention
Bonus”).  The Retention Bonus
shall be payable in two parts; (i) fifty percent (50%) of the Retention
Bonus shall be paid within 5 business days of the date of execution of this
Agreement (the “First
Payment”), subject to the forfeiture rule described in the next
sentence, and (ii) except for such earlier payment as may be required by
Sections 9(a), 9(c) or 9(d), the remaining fifty percent (50%) of the
Retention Bonus shall be paid on April 20, 2009 (the “Second Payment”).  If Executive terminates his employment under Section 9(b) prior
to October 19, 2007, Executive promptly shall repay the amount of the
First Payment (and provided Executive has not terminated his employment under Section 9(b)
prior to October 19, 2007, the First Payment shall be irrevocable and not subject
to any repayment after October 19, 2007). 
In addition, if Executive terminates employment under Section 9(b) prior
to April 20, 2009, Executive shall forfeit the Second Payment.  In addition, in the event that CWMJV issues a
notice to Executive indicating that CWMJV has elected not to renew or extend
the Term for an Additional Period such that this Agreement will expire upon the
one year anniversary of the date of this Agreement, then, in addition to the
other rights and benefits afforded Executive pursuant to Section 9(a), the
Second Payment shall be due and payable simultaneously with CWMJV providing
such non-renewal/non-extension notice.

 

12

 

11.           Mitigation. 
Executive shall not be required to mitigate amounts payable under this
Agreement by seeking other employment or otherwise, and there shall be no
offset against amounts due Executive under this Agreement on account of
subsequent employment.  Additionally,
amounts owed to Executive under this Agreement shall not be offset by any
claims CWMJV may have against Executive, and CWMJV’s obligation to make the
payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any other circumstances,
including, without limitation, any counterclaim, recoupment, defense or other
right which CWMJV may have against Executive or others.

 

12.           Confidential Information Ownership
of Documents; Non-Competition.

 

(a)           Confidential Information.  Executive shall hold in a fiduciary capacity
for the benefit of the Company all trade secrets and confidential information,
knowledge or data relating to the Company and its businesses and investments,
which shall have been obtained by Executive during Executive’s employment by
CWMJV and which is not generally available public knowledge (other than by acts
by Executive in violation of this Agreement). 
Except as may be required or appropriate in connection with his carrying
out his duties under this Agreement, Executive shall not, without the prior
written consent of CWMJV or as may otherwise be required by law or any legal
process, or as is necessary in connection with any adversarial proceeding
against the Company (in which case Executive shall use his reasonable best
efforts in cooperating with the Company in obtaining a protective order against
disclosure by a court of competent jurisdiction), communicate or divulge any
such trade secrets, information, knowledge or data to anyone other than the
Company and those designated by the Company or on behalf of the Company in the
furtherance of its business or to perform duties hereunder.

 

(b)           Removal of Documents Rights to Products.  All records, files, drawings, documents,
models, equipment, and the like relating to the Company’s business, which
Executive has control over shall not be removed from the Company’s premises
without its written consent, unless such removal is in the furtherance of the
Company’s business or is in connection with Executive’s carrying out his duties
under this Agreement and, if so removed, shall be returned to the Company
promptly after termination of Executive’s employment hereunder, or otherwise
promptly after removal if such removal occurs following termination of
employment.  Executive shall assign to
the Company all rights to trade secrets and other products relating to the
Company’s business developed by him alone or in conjunction with others at any
time while employed by the Company.

 

(c)           Injunctive Relief.  In the event of a breach or threatened breach
of this Section 12, Executive agrees that CWMJV shall be entitled to
injunctive relief in a court of appropriate jurisdiction to remedy any such
breach or threatened breach, Executive acknowledging that damages would be
inadequate and insufficient.

 

13

 

(d)           Continuing Operation.  Except as specifically provided in this Section 12,
the termination of Executive’s employment or of this Agreement shall have no
effect on the continuing operation of this Section 12.

 

13.           Indemnification.

 

(a)           General.  CWMJV agrees that if Executive is made a
party or a threatened to be made a party to any action, suit or proceeding,
whether civil, criminal, administrative or investigative (a “Proceeding’’),
by reason of the fact that Executive is or was a trustee, director or officer
of the Company or any subsidiary of the Company or is or was serving at the
request of the Company or any subsidiary as a trustee, director, officer,
member, employee or agent of another corporation or a partnership, joint
venture, trust or other enterprise, including, without limitation, service with
respect to employee benefit plans, whether or not the basis of such Proceeding
is alleged action in an official capacity as a trustee, director, officer,
member, employee or agent while, serving as a trustee, director, officer,
member, employee or agent, Executive shall be indemnified and held harmless by
the Company to the same extent as other officers and directors, as in effect
from time to time, against all Expenses incurred or suffered by Executive in
connection therewith, and such indemnification shall continue as to Executive
even if Executive has ceased to be an officer, director, trustee or agent, or
is no longer employed by the Company and shall inure to the benefit of his
heirs, executors and administrators.

 

(b)           Expenses.  As used in this Agreement, the term “Expenses”
shall include, without limitation, damages, losses, judgments, liabilities,
fines, penalties, excise taxes, settlements, and costs, attorneys’ fees,
accountants’ fees, and disbursements and costs of attachment or similar bonds,
investigations, and any expenses of establishing a fight to indemnification
under this Agreement.

 

(c)           Enforcement.  If a claim or request under this Agreement is
not paid by CWMJV or on its behalf, within thirty (30) days after a written
claim or request has been received by CWMJV, Executive may at any time
thereafter bring suit against CWMJV to recover the unpaid amount of the claim
or request and, if Executive prevails in respect to the material issues,
Executive shall be entitled to be paid also the Expenses of prosecuting such
suit. All obligations for indemnification hereunder shall be subject to, and
paid in accordance with, applicable New York law.

 

(d)           Partial Indemnification.  If Executive is entitled under any provision
of this Agreement to indemnification by CWMJV for some or a portion of any
Expenses, but not, however, for the total amount thereof, CWMJV, shall
nevertheless indemnify Executive for the portion of such Expenses to which
Executive is entitled.

 

(e)           Advances of Expenses.  Expenses incurred by Executive in connection
with any Proceeding shall be paid by CWMJV in advance upon request of Executive
that CWMJV pay 

 

14

 

such
Expenses; but only in the event that Executive shall have delivered in writing
to CWMJV (i) an undertaking to reimburse CWMJV for Expenses with respect
to which Executive is not entitled to indemnification and (ii) an
affirmation of his good faith belief that the standard of conduct necessary for
indemnification by CWMJV has been met.

 

(f)            Notice of Claim.  Executive shall give to CWMJV notice of any
claim made against him for which indemnification will or could be sought under
this Agreement.  In addition, Executive
shall give CWMJV such information and cooperation as it may reasonably require
and as shall be within Executive’s power and at such times and places as are convenient
for Executive.

 

(g)           Defense of Claim.  With respect to any Proceeding as to which
Executive notifies CWMJV of the commencement thereof:

 

(i)            CWMJV will be entitled to
participate therein at its own expense; and

 

(ii)           Except as otherwise provided below,
to the extent that it may wish, CWMJV will be entitled to assume the defense
thereof, with counsel reasonably satisfactory to Executive, which in CWMJV’s
sole discretion may be regular counsel to CWMJV and may be counsel to other
officers and directors of CWMJV or any subsidiary.  Executive also shall have the right to employ
his own counsel in such action, suit or proceeding if he reasonably concludes
that failure to do so would involve a conflict of interest between CWMJV and
Executive, and under such circumstances the fees and expenses of such counsel
shall be at the expense of CWMJV.

 

(iii)          CWMJV shall not be liable to indemnify
Executive under this Agreement for any amounts paid in settlement of any action
or claim effected without its written consent. 
CWMJV shall not settle any action or claim in any manner which would
impose any penalty or limitation on Executive without Executive’s written
consent.  Neither CWMJV nor Executive
will unreasonably withhold or delay their consent to any proposed settlement.

 

(h)           Non-exclusivity.  The right to indemnification and the payment
of expenses incurred in defending a Proceeding in advance of its final
disposition conferred in this Section 13 shall not be exclusive of any
other right which Executive may have or hereafter may acquire under any
statute, provision of the declaration of trust or certificate of incorporation
or by-laws of CWMJV or any subsidiary, agreement, vote of shareholders or
disinterested directors or trustees or otherwise.

 

15

 

14.           Disputes.

 

Any claim arising out of or relating to this
Agreement, any other agreement between the Executive and Company or its
Affiliates, the Executive’s employment with or any termination thereof
(collectively, “Covered
Claims”) shall (except to the extent otherwise provided in Section 12(c) hereof
with respect to certain requests for injunctive relief) be resolved by binding
confidential arbitration, to be held in New York, New York in accordance with
the Commercial Arbitration Rules (and not the National Rules for
Resolution of Employment Disputes) of the American Arbitration Association and
this Section 14 and each of CWMJV, Centro and Executive submits to
jurisdiction in New York, New York for such arbitration.  Judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction
thereof.  CWMJV shall reimburse Executive
for all legal fees and expenses reasonably incurred by Executive in connection
with such contest or dispute, but only if Executive prevails in respect of the
material issues in dispute of Executive’s claims brought and pursued in
connection with such contest or dispute. 
Such reimbursement shall be made as soon as practicable following the
final resolution of such contest or dispute to the extent CWMJV receives
reasonable written evidence of such fees and expenses.

 

15.           Successors; Binding Agreement.

 

(a)           Company’s Successors.  No rights or obligations of CWMJV under this
Agreement may be assigned or transferred except that CWMJV will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of CWMJV
or Centro to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that CWMJV and/or Centro would be required to
perform it if no such succession had taken place.  As used in this Agreement, “Company” or
“CWMJV”
shall mean the Company or CWMJV, respectively, as herein before defined and any
successor to its business and/or assets (by merger, purchase or otherwise)
which executes and delivers the agreement provided for in this Section 15
or which otherwise becomes bound by all the terms and provisions of this
Agreement by operation of law.

 

(b)           Executive’s Successors.  No rights or obligations of Executive under
this Agreement may be assigned or transferred by Executive other than his
rights to payments or benefits hereunder, which may be transferred only by will
or the laws of descent and distribution. 
Upon Executive’s death, this Agreement and all rights of Executive
hereunder shall inure to the benefit of and be enforceable by Executive’s
beneficiary or beneficiaries, personal or legal representatives, or estate, to
the extent any such person succeeds to Executive’s interests under this
Agreement.  Executive shall be entitled
to select and change a beneficiary or beneficiaries to receive any benefit or
compensation payable hereunder following Executive’s death by giving CWMJV
written notice thereof.  In the event of
Executive’s death or a judicial determination of his incompetence, reference in
this Agreement to Executive shall be deemed, where appropriate, to refer to his
beneficiary(ies), estate or other legal representative(s).  If Executive should die following his Date of
Termination while any amounts would still be payable to him hereunder if he had
continued to live, all such amounts unless otherwise provided herein shall be
paid in accordance with the terms of this Agreement to such person or persons
so appointed in writing by Executive, or otherwise to his legal representatives
or estate.

 

16

 

16.           Notice.  All
notices or other communications which are required or permitted hereunder shall
be in writing and sufficient if delivered personally, or sent by
nationally-recognized, overnight courier or by registered or certified mail,
return receipt requested and postage prepaid, addressed as follows:

 

If to Executive:

 

Mr. Dean Bernstein

c/o Centro Watt Management Joint Venture 2 LP 

420 Lexington Avenue

7th Floor

New York, NY 10070

 

If to Centro:

 

Centro Properties Group 

Level 3, 235 Springvale Road 

Glen Waverley, VIC 3150 

AUSTRALIA

Attention:  Andrew T. Scott

 

If to CWMJV:

 

Centro Watt Management Joint Venture 2 LP 

420 Lexington Avenue

7th Floor

New York, NY 10070 

Attention:  Steven F. Siegel

 

or to such other address as any party may
have furnished to the others in writing in accordance herewith.  All such notices and other communications
shall be deemed to have been received (a) in the case of personal
delivery, on the date of such delivery, (b) in the case of delivery by
nationally-recognized, overnight courier, on the business day following
dispatch and (c) in the case of mailing, on the third business day
following such mailing.

 

17.           Miscellaneous. 
No provisions of this Agreement may be amended, modified, or waived
unless such amendment or modification is agreed to in writing signed by
Executive and by a duly authorized officer of CWMJV, and such waiver is set
forth in writing and signed by the party to be charged.  No waiver by either party hereto at any time
of any breach by the other party hereto of any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.  The
respective rights and obligations of the parties hereunder of this Agreement
shall survive Executive’s termination of employment and the termination of this
Agreement to the extent necessary for the intended preservation of such rights 

 

17

 

and obligations.  The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of the State of
New York without regard to its conflicts of law principles.

 

18.           Jurisdiction. 
Subject to the obligations with respect to arbitration as provided in Section 14
hereof, CWMJV, Centro and Executive each submits to the jurisdiction of any New
York State Court or Federal Court of the United States of America sitting in
the borough of Manhattan, and any appellate court from any such court, in any
suit, action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment, and each hereby agrees that all
claims in respect of any such suit, action or proceeding shall be brought in
and may be heard and determined in such New York State Court or, to the extent
permitted by law, in such Federal Court. 
CWMJV, Centro and Executive each waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have
to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement in any New York State Court or Federal Court sitting
in the borough of Manhattan.

 

19.           Validity. 
The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

 

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

 

21.           Entire Agreement. 
This Agreement sets forth the entire agreement of the parties hereto in
respect of the subject matter contained herein and supersede all prior
agreements, promises, covenants, arrangements, communications, representations
or warranties, whether oral or written, by any officer, director, employee or
representative of any party hereto in respect of such subject matter.  Any prior agreement of the parties hereto in
respect of the subject matter contained herein is hereby terminated and
canceled.

 

22.           Withholding. 
All payments hereunder shall be subject to any required withholding of
Federal, state and local taxes pursuant to any applicable law or regulation.

 

23.           Noncontravention. 
CWMJV represents that CWMJV is not prevented from entering into, or
performing this Agreement by the terms of any law, order, rule or
regulation, its by-laws or certificate of incorporation, or any agreement to
which it is a party, other than which would not have a material adverse effect
on CWMJV’s ability to enter into or perform this Agreement.  Executive represents to CWMJV that he is not
a party to any contract that would preclude him from accepting employment as
Chief Executive Officer of Centro US and he has no reason to believe that accepting
employment as Chief Executive Officer of Centro US would result in a disclosure
of any confidential information of any prior employer.

 

18

 

24.           Section Headings.  The section headings in this Agreement are
for convenience of reference only, and they form no part of this Agreement and
shall not affect its interpretation.

 

25.           Centro Properties Group.  Centro is executing this Agreement as a
guarantor of all obligations of CWMJV hereunder and by its execution hereof
agrees to all of the terms and conditions of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the date first above written.

 

 

	
   

  	
  CENTRO
  PROPERTIES GROUP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  T. Scott

  
	
   

  	
   

  	
  Name:

  	
  Andrew T.
  Scott

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CENTRO WATT
  MANAGEMENT JOINT 

  
	
   

  	
  VENTURE 2 LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  T. Scott

  
	
   

  	
   

  	
  Name:

  	
  Andrew T.
  Scott

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
  Centro
  Properties Group

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Dean
  Bernstein

  
	
   

  	
  DEAN
  BERNSTEIN

  
						

 

19

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