Document:

Employment agreement with Thomas Crocker

 

EXHIBIT 10.3

EMPLOYMENT AGREEMENT

     AGREEMENT, entered into as of January 1, 2005 (the “Effective Date”) by and
between CRT Properties, Inc., a Florida corporation (together with its successors and assigns, the
“Company”), and Thomas J. Crocker (the “Executive”);

W I T N E S S E T H:

     WHEREAS, the Company and the Executive are parties to an Employment Agreement effective
as of January 1, 2002 (the “Prior Employment Agreement”);

     WHEREAS, the Company desires to continue to employ the Executive as its Chief Executive
Officer, to have the Executive continue to serve as a member of the Company’s Board of
Directors (the “Board”), and to enter into a new agreement embodying the terms of his
employment; and

     WHEREAS, the Executive desires to accept such continued employment with the Company,
and continued service on the Board, subject to the terms and provisions of this Agreement.

     NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt of which is mutually acknowledged, the Company
and the Executive (the “Parties”) agree as follows:

     1. Definitions. Capitalized terms not otherwise defined herein shall have the meanings
set forth in Exhibit A.

     2. Term. The Parties hereby agree that the Prior Employment Agreement is terminated
and superseded, as of the Effective Date, to the extent provided in Section 15(a) hereof. As of the
Effective Date, neither the Company nor the Executive shall have any rights or obligations pursuant
to the Prior Employment Agreement, except as otherwise provided herein (including, without
limitation, in Section 15(a) hereof). The Company hereby employs the Executive under this
Agreement, and the Executive hereby accepts such employment for a term commencing as of the
Effective Date and ending on December 31, 2007 (the “Original Term”); provided,
however, that the term of employment hereunder shall thereafter be automatically extended for an
unlimited number of additional one-year periods (each, an “Additional Term;” the Original
Term and any Additional Terms collectively, the “Term”) unless, at least 90 days prior to the
expiration of the Term, either Party gives notice to the other that such Party 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.

     3. Positions, Duties and Location.

     (a) During the Term, the Executive shall serve as the Chief Executive Officer of the Company;
shall have all authorities, duties and responsibilities customarily exercised by an individual
serving as the Chief Executive Officer at an entity of the size and nature of the Company; shall
have such other duties, authorities and responsibilities as the Board may from time to time
reasonably designate, consistent with the foregoing; shall report solely and directly to the Board
and its Chairman; and shall serve as a member of the Board (unless the shareholders of the Company
fail to reelect him to the Board at a meeting of shareholders at which the Company recommends his
election).

     (b) During the Term, the Executive shall devote substantially all of his business time and
efforts to the business and affairs of the Company. However, nothing shall preclude the Executive
from the following: (i) serving on the boards of a reasonable number of business entities, trade
associations and charitable organizations (provided that the Executive shall give the Board or its
Chairman prior written notice before joining any new business board on or after the Effective
Date), (ii) engaging in charitable activities and community affairs, (iii) accepting and

 

 

fulfilling a reasonable number of speaking engagements, and (iv) managing his personal
investments and 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.

     (c) During the Term, the Executive’s principal office, and principal place of employment,
shall be in Boca Raton, Florida.

     4. Base Salary. Commencing as of the Effective Date, the Executive shall receive an
annualized base salary of $500,000, payable in accordance with the regular payroll practices
applicable to senior executives of the Company generally, but no less frequently than monthly
(“Base Salary”). The Base Salary shall be reviewed no less frequently than annually during
the Term for increase in the discretion of the compensation committee. The Base Salary shall not be
decreased at any time, or for any purpose, during the Term (including, without limitation, for the
purpose of determining benefits due under Section 7 hereof) without the prior written consent of
the Executive.

     5. Incentive Awards. During the Term, the Executive shall be a participant in the CRT
Properties, Inc. Senior Management Compensation Plan and any successor thereto (the
“Plan”), and shall accordingly be entitled to receive annual cash bonuses and long-term
incentive awards in accordance with the Plan. No amendment of the Plan, or of the terms of any
award granted under the Plan, that is adverse to the interests of the Executive shall be effective
as to bonuses and awards granted to, or earned by, the Executive during the Term. Any long-term
incentive awards granted to the Executive pursuant to the Compensation Plan for Senior Officers of
CRT Properties, Inc. (the “Prior Plan”) shall continue in effect, and no amendment of the Prior
Plan, or of the terms of any award granted under the Prior Plan, that is adverse to the Executive
shall be effective as to bonuses and awards granted to, or earned by, the Executive under the Prior
Plan.

6. Other Benefits.

     (a) Employee Benefits. During the Term, the Executive shall be entitled to participate
in all employee benefit plans, programs and arrangements made available to other senior executives
of the Company generally, including, without limitation, pension, profit-sharing, 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 senior
executives of the Company 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 Company policies, in each case
on terms and conditions that are no less favorable to him than those applying to other senior
executives of the Company 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 senior executives of
the Company generally. Nothing in this Section 6(a) shall be construed to require the Company to
establish or maintain any particular employee or post-retirement benefit plan, program or
arrangement except as expressly set forth elsewhere in this Agreement. The Company 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.
Notwithstanding the foregoing, the Executive shall not be entitled to participate in the Amended
and Restated Supplemental Executive Retirement Plan for Executives of CRT Properties, Inc. and
Participating Related Entities.

     (b) Fringe Benefits, Perquisites and Vacations. During the Term, the Executive shall
be entitled (i) to participate in all fringe benefits and perquisites made available to other
senior executives of the Company generally, in each case on terms and conditions that are no less
favorable to him than those applying to other senior executives of the Company generally and (ii)
to no less than five weeks’ paid vacation per calendar year (pro-rated for partial calendar years)
which, if not used, may be carried over from year to year with the approval of the Board.

     (c) Reimbursement of Business and Other Expenses. The Executive shall be promptly
reimbursed for all expenses reasonably incurred by him in connection with his service under this
Agreement or the Prior Employment Agreement, subject to documentation in accordance with reasonable
policies applying to senior

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executives of the Company generally. Such reimbursable expenses will include the expenses
(including, without limitation, transportation, meals and lodging costs) incurred by the Executive
for travel between the Company’s offices. The Company shall also promptly pay any and all
reasonable expenses (including, without limitation, attorneys’ fees and other charges of counsel)
incurred by the Executive on or prior to the 30th day following the date this Agreement is signed
in connection with entering into these employment arrangements.

7. Termination of Employment.

     (a) Termination Due to Death or Disability. In the event that the Executive’s
employment hereunder is terminated prior to expiration of the Term due to his death or Disability,
the Executive, his estate or his beneficiaries (as the case may be) shall be entitled to the
following:

          (i) an amount equal to his annual Base Salary on the Termination Date, payable in a lump sum
(without discount) as soon as practicable following the Termination Date;

          (ii) an annual cash bonus under the Plan for the year of termination, determined and paid at
the end of such year (x) as if the Executive’s employment hereunder had continued, (y) as if
“target” performance levels had been attained on all individual performance goals and (z) using
actual performance as against corporate goals (i.e., shareholder return and FFO), provided that the
amount actually paid shall be prorated based on the number of days during the year of termination
on which the Executive was employed by the Company;

          (iii) with respect to Restricted Stock, OPP benefits, and other awards under Section 5 hereof:
(A) any awards (including OPP awards made in the form of Restricted Stock) that vest solely based
on continued employment and are not otherwise vested as of the Termination Date shall vest as of
such date; (B) with respect to any awards (other than OPP benefits) that vest in whole, or in part,
based on performance (as distinct from continued service alone) and are not otherwise vested as of
the Termination Date, if a pertinent performance period (including, for this purpose, the longest
applicable multi-year performance period that could have applied had no termination of employment
occurred) has not ended on or prior to such date, the amount of the award (e.g., number of shares
of Restricted Stock) earned by the Executive shall be determined as of such date as if that
performance period had ended on such date (with performance accordingly measured against target
performance over the shortened performance period rather than against target performance over the
originally scheduled performance period), and any portion of the award earned shall vest as of such
date, provided that the amount of any award vesting pursuant to this sub-clause (B) shall
be prorated based on the total number of days in the shortened performance period as compared with
the total number of days in the originally scheduled performance period; (C) with respect to the
OPP, if the Termination Date occurs on or prior to the date that awards are otherwise made in
respect of the OPP, the size of the OPP performance pool shall be determined using a Measurement
Period that ends on the earlier of (x) the expiration of the scheduled Measurement Period and (y)
the Termination Date, and with the Company Ending Value determined as of the earlier of such dates,
based on the average closing market price of the Company’s common stock for the ten consecutive
trading days immediately prior to the earlier of such dates, and any OPP awards shall be made as
promptly as reasonably practicable thereafter, in the form of fully vested shares or cash; and (D)
except to the extent otherwise provided in an applicable deferral election of the Executive, any
shares or other awards that vest pursuant to this Section 7 (a)(iii) shall pay out promptly after
vesting.

          (iv) the benefits described in Section 7(h) hereof.

     Neither Party may terminate the Executive’s employment hereunder for Disability without first
giving 15 days’ written notice of such termination to the other Party.

(b) Termination for Cause.

          (i) No termination of the Executive’s employment hereunder for Cause shall be effective as a
termination for Cause unless the provisions of this Section 7(b)(i) shall first have been complied
with. The Executive shall be given written notice by the Board of its intention to terminate him
for Cause, such notice (the “Cause Notice”) (x) to state in reasonable detail the
particular circumstances that constitute the grounds on which the proposed termination for Cause is
based, (y) to be given no later than 180 days after the Board first learns of

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such circumstances and (z) to include a copy of a resolution duly adopted by at least
two-thirds of the entire membership of the Board at a meeting of the Board which was called for the
purpose of considering such termination and at which the Executive and his representative had the
right to attend and address the Board, finding that, in the good faith determination of the Board,
Cause to terminate the Executive’s employment hereunder on the stated grounds existed. The
Executive shall have 10 days after receiving such Cause Notice in which to cure such grounds to the
extent such cure is possible. To the extent cure is not possible, the Executive’s employment
hereunder shall be terminated as of the 10th day after receiving the Cause Notice. If he fails to
cure such grounds within the permitted 10-day period, as determined in good faith by the Board, the
Executive’s employment hereunder shall be terminated as of the 10th day after receiving the Cause
Notice. Any determination by the Board that Cause existed, or that cure was not achieved, shall
(for avoidance of doubt) be subject to de novo review, at the Executive’s election, through
arbitration in accordance with Section 13 hereof.

          (ii) In the event that the Executive’s employment hereunder is terminated for Cause in
accordance with Section 7(b)(i) hereof prior to the expiration of the Term, (A) he shall be
entitled to the benefits described in Section 7(h) hereof, (B) he shall not receive any annual cash
bonus under Section 5 hereof for the year of termination and (C) any award granted to him under
Section 5 hereof shall be immediately forfeited to the extent that it is not both earned and vested
as of the Termination Date.

     (c) Termination Without Cause. In the event that the Executive’s employment hereunder
is terminated by the Company prior to the expiration of the Term other than (x) for
Disability or death in accordance with Section 7(a) hereof; or (y) for Cause in accordance with
Section 7(b)(i) hereof, he shall, subject to the provisions of Section 7(j) hereof, be entitled to:

          (i) an amount, payable in a lump sum as soon as practicable following the Termination Date,
equal to the product of (z) the sum of his annual Base Salary at the rate in effect as of
the Termination Date plus an amount equal to the average annual cash bonus earned by him
for the three (3) calendar years prior to the Termination Date, multiplied by (y) the
number of whole months remaining in the Term (but not less than 24) divided by (z) 12;

          (ii) an annual cash bonus under the Plan for the year of termination, determined and paid at
the end of such year (x) as if the Executive’s employment hereunder had continued, (y) as if
“target” performance levels had been attained on all individual performance goals and (z) using
actual performance as against corporate goals, provided that the amount actually paid shall
be prorated based on the number of days during the year of termination on which the Executive was
employed by the Company;

          (iii) with respect to Restricted Stock, OPP benefits, and other awards under Section 5 hereof:
(A) any awards (including OPP awards made in the form of Restricted Stock) that vest solely based
on continued employment and are not otherwise vested as of the Termination Date shall vest as of
such date; (B) with respect to any awards (other than OPP benefits) that vest in whole, or in part,
based on performance (as distinct from continued service alone) and are not otherwise vested as of
the Termination Date, if a pertinent performance period (including, for this purpose, the longest
applicable multi-year performance period that could have applied had no termination of employment
occurred) has not ended on or prior to such date, the amount of the award (e.g., number of shares
of Restricted Stock) earned by the Executive shall be determined as of such date as if that
performance period had ended on such date (with performance accordingly measured against target
performance over the shortened performance period rather than against target performance over the
originally scheduled performance period), and any portion of the award earned shall vest as of such
date, without proration; (C) with respect to the OPP, if the Termination Date occurs on or prior to
the date that awards are otherwise made in respect of the OPP, the size of the OPP performance pool
shall be determined using a Measurement Period that ends on the earlier of (x) the expiration of
the scheduled Measurement Period and (y) the Termination Date, and with the Company Ending Value
determined as of the earlier of such dates, based on the average closing market price of the
Company’s common stock for the ten consecutive trading days immediately prior to the earlier of
such dates, and any OPP awards shall be made as promptly as reasonably practicable thereafter, in
the form of fully vested shares or cash; and (D) except to the extent otherwise provided in an
applicable deferral election of the Executive, any shares or other awards that vest pursuant to
this Section 7 (c)(iii) shall pay out promptly after vesting.

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          (iv) continued participation, for the Executive and his dependents, through the later of the
end of the Original Term and the second anniversary of the Termination Date, in all medical,
dental, vision, prescription drug, hospitalization and health insurance coverages and benefits in
which they were participating as of the Termination Date, on terms and conditions that are no less
favorable to them than those that apply to other participants generally, and with continuation
coverage benefits under group health plans as required by the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended, commencing following such period, provided, that
such entitlements shall be reduced to the extent that equivalent coverages and benefits (determined
on a coverage-by-coverage and benefit-by-benefit basis) are provided under the plans, programs or
arrangements of a subsequent employer, and provided, further, that to the extent
that the Executive, or any of his dependents, is precluded from continuing full participation in
any coverage or benefit as provided in this Section 7(c)(iv), the Executive shall be entitled to
the after-tax economic equivalent of any coverage or benefit foregone, for which purpose the
economic equivalent shall be deemed to be the total cost of obtaining such coverage or benefit on
an individual basis, with payment of such after tax economic equivalent to be made quarterly in
advance, without discount; and

          (v) the benefits described in Section 7(h) hereof.

     (d) Termination for Good Reason. The Executive may terminate his employment hereunder
for Good Reason, on 10 days’ notice to the Company, if he first provides the Company with a Notice
of Termination for Good Reason and if the grounds claimed in such notice to constitute Good Reason
are not corrected prior to the date of requested cure set forth in such notice. Such notice, to the
extent based on any of clauses (i) through (v) of the definition of Good Reason in Exhibit A, shall
be provided within 90 days after the Executive first learns of the occurrence of any of the events
that are claimed in such notice to constitute Good Reason. Any failure by the Executive to set
forth in a Notice of Termination for Good Reason any facts or circumstances that contribute to the
showing of Good Reason shall not waive any right of the Executive hereunder or preclude him from
asserting such fact of circumstances in enforcing his rights hereunder. In the event that the
Executive terminates his employment hereunder for Good Reason prior to the expiration of the Term,
he shall, subject to the provisions of Section 7(j) hereof, have the same entitlements as provided
under Section 7(c) hereof in the case of a termination by the Company without Cause.

     (e) Voluntary Termination. In the event that the Executive terminates his employment
hereunder prior to the expiration of the Term on his own initiative, other than for death,
Disability or for Good Reason, (i) he shall be entitled to the benefits described in Section 7(h)
hereof and (ii) his annual cash bonus under Section 5 hereof for the year of termination, and any
award under Section 5 hereof that is not both earned, and vested, shall be treated as described in
Section 7(b)(ii) hereof.

     (f) Change in Control. In the event that the Executive’s employment hereunder (x) is
terminated in anticipation of, or within twelve months following, a Change in Control and (y) such
termination is governed by Section 7(c) or (d) hereof (relating to terminations without Cause or
for Good Reason), then the Executive shall, subject to the provisions of Section 7(j) hereof, be
entitled to all of the benefits described in the applicable Section; provided, however,
that in lieu of the amount described in Section 7(c)(i) hereof, the Executive shall be entitled to
an amount, payable in a lump sum as soon as practicable following the Termination Date, equal to
three times the sum of (x) his annual Base Salary at the rate in effect as of the Termination Date
plus (y) the average annual cash bonus earned by him for the three calendar years prior to the
Termination Date. Such amount shall be paid in consideration of the Executive agreeing to the
restrictions contained in Section 10 hereof.

     (g) Expiration of the Term. In the event that the Executive’s employment hereunder
terminates by expiration of the Term pursuant to notice of non-extension in accordance with Section
2 hereof, the Executive shall be entitled to:

          (i) if the applicable notice of non-extension was given by the Company, and solely with
respect to Restricted Stock, OPP benefits, and other awards under Section 5 hereof: (A) any awards
(including OPP awards made in the form of Restricted Stock) that vest solely based on continued
employment and are not otherwise vested as of the Termination Date shall vest as of such date; (B)
with respect to any awards (other than OPP benefits) that vest in whole, or in part, based on
performance (as distinct from continued service alone) and are not otherwise vested as of the
Termination Date, if a pertinent performance period (including, for this purpose, the

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longest applicable multi-year performance period that could have applied had no termination of
employment occurred) has not ended on or prior to such date, the amount of the award (e.g., number
of shares of Restricted Stock) earned by the Executive shall be determined as of such date as if
that performance period had ended on such date (with performance accordingly measured against
target performance over the shortened performance period rather than against target performance
over the originally scheduled performance period), and any portion of the award earned shall vest
as of such date, without proration; (C) with respect to the OPP, if the Termination Date occurs on
or prior to the date that awards are otherwise made in respect of the OPP, the size of the OPP
performance pool shall be determined using a Measurement Period that ends on the earlier of (x) the
expiration of the scheduled Measurement Period and (y) the Termination Date, and with the Company
Ending Value determined as of the earlier of such dates, based on the average closing market price
of the Company’s common stock for the ten consecutive trading days immediately prior to the earlier
of such dates, and any OPP awards shall be made as promptly as reasonably practicable thereafter,
in the form of fully vested shares or cash; and (D) except to the extent otherwise provided in an
applicable deferral election of the Executive, any shares or other awards that vest pursuant to
this Section 7 (g)(i) shall pay out promptly after vesting;

          (ii) if the applicable notice of non-extension was given by the Executive, and solely with
respect to Restricted Stock, OPP benefits, and other awards under Section 5 hereof: (A) any awards
(including OPP awards made in the form of Restricted Stock) that vest solely based on continued
employment and are not otherwise vested as of the Termination Date shall vest as of such date; (B)
with respect to any awards (other than OPP benefits) that vest in whole, or in part, based on
performance (as distinct from continued service alone) and are not otherwise vested as of the
Termination Date, if a pertinent performance period (including, for this purpose, the longest
applicable multi-year performance period that could have applied had no termination of employment
occurred) has not ended on or prior to such date, the amount of the award (e.g., number of shares
of Restricted Stock) earned by the Executive shall be determined as of such date as if that
performance period had ended on such date (with performance accordingly measured against target
performance over the shortened performance period rather than against target performance over the
originally scheduled performance period), and any portion of the award earned shall vest as of such
date, provided that the amount of any award vesting pursuant to this subclause (B) shall be
prorated based on the total number of days in the shortened performance period as compared with the
total number of days in the original scheduled performance period; (C) with respect to the OPP, if
the Termination Date occurs on or prior to the date that awards are otherwise made in respect of
the OPP, the size of the OPP performance pool shall be determined using a Measurement Period that
ends on the earlier of (x) the expiration of the scheduled Measurement Period and (y) the
Termination Date, and with the Company Ending Value determined as of the earlier of such dates,
based on the average closing market price of the Company’s common stock for the ten consecutive
trading days immediately prior to the earlier of such dates, and any OPP awards shall be made as
promptly as reasonably practicable thereafter, in the form of fully vested shares or cash; and (D)
except to the extent otherwise provided in an applicable deferral election of the Executive, any
shares or other awards that vest pursuant to this Section 7 (g)(ii) shall pay out promptly after
vesting; and

          (iii) in either event, the benefits described in Section 7(h) hereof.

     (h) Miscellaneous. On any termination of the Executive’s employment hereunder, he
shall be entitled to:

          (i) Base Salary through the Termination Date;

          (ii) the balance of any annual, long-term, or other incentive award earned (but not yet paid
or forfeited) with respect to any performance period ending on or before the Termination Date;

          (iii) a lump-sum payment in respect of accrued but unused vacation days (up to 25 days) at his
Base Salary rate in effect as of the Termination Date; and

          (iv) other or additional benefits in accordance with applicable plans, programs and
arrangements of the Company and its Affiliates (including, without limitation, Sections 5, 6 and 8
hereof; any Stock Option, Restricted Stock or LTIP agreement or award; any award under the Prior
Plan; and Section 3(d) of the Employment Agreement between the Company and the Executive effective
as of February 17, 2000 (the “2000 Employment Agreement”) and any agreements and arrangements
entered into pursuant to such section).

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     (i) No Mitigation; No Offset. In the event of any termination of the Executive’s
employment hereunder, the Executive shall be under no obligation to seek other employment or
otherwise mitigate the obligations of the Company under this Agreement, and there shall be no
offset against amounts or benefits due the Executive under this Agreement or otherwise (except as
expressly set forth in Section 7(c)(v) above) on account of (x) any Claim that the Company may have
against him, except upon the Company’s obtaining of a final unappealable judgment against him or
(y) any remuneration or other benefit earned or received by the Executive after such termination.
Any amounts due under this Section 7 are considered to be reasonable by the Company and are not in
the nature of a penalty. Notwithstanding the foregoing, the Company may offset amounts due the
Executive under this Agreement against any amounts then due under any loan made by the Company to
the Executive pursuant to any agreement entered into after the Effective Date.

     (j) Release. As a condition to receiving the payments and benefits described in
Section 7(c), (d) or (f) hereof, the Executive must execute, deliver to the Company, and not revoke
(within the time period permitted by applicable law) a general release substantially in the form
attached hereto as Appendix I. No payments or benefits provided for in Section 7(c), (d) or (f)
hereof (other than payments and benefits that would have been due, under Section 7(h) hereof, even
if the termination of the Executive’s employment had been for Cause in accordance with Section 7(b)
hereof) will be made until the general release has become effective.

     8. Change in Control.

     (a) In the event that a Change in Control occurs while the Executive is employed hereunder,
the Executive shall be entitled to the following with respect to any Restricted Stock, OPP benefit,
or other award under Section 5 hereof: (A) any awards (including OPP awards made in the form of
Restricted Stock) that vest solely based on continued employment and are not otherwise vested as of
the date of such Change in Control shall vest as of such date; (B) with respect to any awards
(other than OPP benefits) that vest in whole, or in part, based on performance (as distinct from
continued service alone) and are not otherwise vested as of the date of such Change in Control, if
a pertinent performance period (including, for this purpose, the longest applicable multi-year
performance period that could have applied had no Change in Control occurred) has not ended on or
prior to such date, the amount of the award (e.g., number of shares of Restricted Stock) earned by
the Executive shall be determined as of such date as if that performance period had ended on such
date (with performance accordingly measured against target performance over the shortened
performance period rather than against target performance over the originally scheduled performance
period), and any portion of the award earned shall vest as of such date, without proration; (C)
with respect to the OPP, if the date of such Change in Control occurs on or prior to the date that
awards are otherwise made in respect of the OPP, the size of the OPP performance pool shall be
determined using a Measurement Period that ends on the earlier of (x) the expiration of the
scheduled Measurement Period and (y) the date of such Change in Control, and with the Company
Ending Value determined as of the earlier of such dates, based on the average closing market price
of the Company’s common stock for the ten consecutive trading days immediately prior to the earlier
of such dates, and any OPP awards shall be made as promptly as reasonably practicable thereafter,
in the form of fully vested shares or cash; and (D) except to the extent otherwise provided in an
applicable deferral election of the Executive, any shares or other awards that vest pursuant to
this Section 8 (a) shall pay out promptly after vesting.

     (b) In the event that a Change in Control occurs, the Executive shall be entitled to other or
additional benefits (if any) in accordance with applicable plans, programs and arrangements of the
Company and its Affiliates (including, without limitation, Section 3(d) of the 2000 Employment
Agreement and any outstanding Stock Option).

     (c) In the event that any payment or benefit made or provided to or for the benefit of the
Executive in connection with this Agreement, his employment with the Company, or any termination of
such employment (a “Payment”) is determined to be subject to any excise tax (“Excise
Tax”) imposed by Section 4999 of the Code (or any successor to such Section), the Executive
shall be entitled to receive, prior to the time any Excise Tax is payable with respect to such
Payment (through withholding or otherwise), an additional amount which, after the imposition of all
income, employment, excise and other taxes thereon, is equal to the sum of the Excise Tax on such
Payment plus any penalty and interest assessments associated with such Excise Tax. The
determination of whether any Payment is subject to an Excise Tax and, if so, the amount to be paid
to the Executive and the time of payment pursuant to this Section 8(c) shall be made by an
independent auditor (the “Auditor”) paid by the Company. The Auditor shall be a nationally
recognized United States public accounting firm selected by the Company unless the

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Executive reasonably objects to the use of that firm, in which event the Auditor shall be a
nationally recognized United States public accounting firm chosen by the Executive in consultation
with the Company. The Parties shall cooperate with each other in connection with any Proceeding or
Claim relating to the existence or amount of any liability for Excise Tax. All expenses relating to
any such Proceeding or Claim (including reasonable attorneys’ fees and other expenses incurred by
the Executive in connection therewith) shall be paid by the Company, promptly upon request by the
Executive, and any such payment shall (for the avoidance of doubt) be subject to gross-up under
this Section 8(c) in the event that the Executive is subject to Excise Tax on it.

     9. Indemnification.

     (a) If the Executive is made a party, is threatened to be made a party, or reasonably
anticipates being made a party, to any Proceeding by reason of the fact that he is or was a
director, officer, member, employee, agent, manager, trustee, consultant or representative of the
Company or any of its Affiliates or is or was serving at the request of the Company or any of its
Affiliates, or in connection with his service hereunder, as a director, officer, member, employee,
agent, manager, trustee, consultant or representative of another Person, or if any Claim is made,
is threatened to be made, or is reasonably anticipated to be made, against the Executive that
arises out of or relates to the Executive’s service in any of the foregoing capacities, then the
Executive shall promptly be indemnified and held harmless to the fullest extent permitted or
authorized by the Certificate of Incorporation or Bylaws of the Company, or if greater, by
applicable law, against any and all costs, expenses, liabilities and losses (including, without
limitation, attorneys’ and other professional fees and charges reasonably incurred, judgments,
interest, expenses of investigation reasonably incurred, penalties, fines, ERISA excise taxes or
penalties, and amounts paid or to be paid pursuant to settlements reasonably entered into) incurred
or suffered by the Executive in connection therewith, and such indemnification shall continue as to
the Executive even if he has ceased to be a director, officer, member, employee, agent, manager,
trustee, consultant or representative of the Company or other Person and shall inure to the benefit
of his heirs, executors and administrators. The Executive shall be entitled to prompt advancement
of any and all costs and expenses (including, without limitation, attorneys’ and other professional
fees and charges) incurred by him in connection with any such Proceeding or Claim, or in connection
with seeking to enforce his rights under this Section 9(a) hereof, any such advancement to be made
within 15 days after the Executive gives written notice, supported by reasonable documentation,
requesting such advancement. Such notice shall include an undertaking by the Executive to repay the
amount advanced if he is ultimately determined not to be entitled to indemnification against such
costs and expenses. The Executive shall be deemed to have met any standard of conduct required for
indemnification unless the contrary shall be established by the Company. Nothing in this Agreement
shall operate to limit or extinguish any right to indemnification, advancement of expenses, or
contribution that the Executive would otherwise have (including, without limitation, by agreement
or under applicable law).

     (b) A directors’ and officers’ liability insurance policy (or policies) shall be kept in
place, during the Term and thereafter until the sixth anniversary of the Termination Date,
providing coverage to the Executive that is no less favorable to him in any respect (including,
without limitation, with respect to scope, exclusions, amounts, and deductibles) than the coverage
then being provided to any other present or former senior executive or director of the Company.
This Section 9(b) does not obligate the Company to maintain a directors’ and officers’ liability
insurance policy.

     10. Restrictive Covenants.

     (a) During the Term and at all times thereafter, the Executive shall not, without the prior
written consent of the Company, use any Confidential Information for any purpose other than on the
Company’s behalf or divulge, disclose or make accessible to any other Person any Confidential
Information except (i) to the Company and its Affiliates, or to any authorized agent or
representative of any of them, (ii) in connection with performing his duties hereunder, (iii) when
required to do so by law or by a court, governmental agency, legislative body, or arbitrator or
other Person with jurisdiction to order him to divulge, disclose or make accessible such
information, (iv) in the course of any Proceeding under Section 10(c) or 13 hereof, or (v) in
confidence to an attorney or other professional advisor for the purpose of securing professional
advice. In the event that the Executive is required to disclose any Confidential Information
pursuant to clause (iii) or (iv) of the immediately preceding sentence, he shall (A) promptly give
the Company notice that such disclosure is or may be made, and (B) cooperate with the Company, at
its reasonable request and sole expense, in seeking to protect the confidentiality of the
Confidential

8

 

Information (including, in the event that the Company shall have paid for the retention by him
of his own counsel, only disclosing that portion of the Confidential Information which he is
advised by such counsel is legally required). Upon any termination of his employment with the
Company, he shall immediately return or destroy all Confidential Information that is in physical
(including electronic) form and is then in his possession, including all notes, copies,
reproductions, summaries, analysis, and extracts thereof then in his possession, provided that the
Executive may in any event retain his personal rolodex, his personal correspondence files, and
documents relating to his compensation, benefits and other entitlements.

     (b) During the Term, and (provided that neither the Company nor any of its Affiliates shall,
on or after the Termination Date, have materially breached any of their material obligations to the
Executive under this Agreement or otherwise, which breach shall have continued uncured for 15 days
after the Executive has given written notice requesting cure) for a period of two (2) years
thereafter, the Executive shall not, without the prior written consent of the Company and other
than in connection with his services hereunder during the Term, become employed in an executive
capacity similar to the capacity in which he served the Company hereunder by any of the following:

          (i) any southeastern public office REIT; or

          (ii) any southeastern private office REIT with net assets in excess of $200 million.

     (c) In the event of any actual or threatened breach by the Executive of any of the provisions
of Sections 10(a) or (b) hereof, the Company shall be entitled to seek an injunction, through
arbitration in accordance with Section 13 hereof or from any court with jurisdiction over the
matter and the Executive, restraining the Executive from violating such provision, without the
necessity of proving actual damages or the inadequacy of a legal remedy.

     (d) All work performed by the Executive during the course of his employment with the Company
(whether alone or with others) in (i) creating, developing, modifying, enhancing or maintaining
computer programs, databases and the like and/or (ii) creating, developing or modifying works to
which copyright protection may attach, shall be considered “works made for hire” to the extent
permitted under applicable copyright law and shall be the exclusive property of the Company. To the
extent such works are not considered works made for hire, all right, title and interest in and to
such works, including, but not limited to, the copyright, renewals and extensions thereof, is
hereby assigned to the Company and the Executive agrees to execute, promptly upon the Company’s
reasonable request and at its sole expense, any documents in relation to said assignment as are
reasonably necessary to perfect the Company’s exclusive ownership therein.

     (e) The Executive hereby assigns all right, title and interest in and to all inventions and
methods (whether or not patentable or reduced to practice), improvements, discoveries, techniques,
formulae and processes, created, developed or conceived by the Executive during the Term and
relating to the Company’s business. After termination of his employment, the Executive will
cooperate with the Company, at the Company’s reasonable request and sole expense, in the protection
and enforcement of the rights and property of the Company in any invention, method, improvement,
discovery, techniques, formulae or process, assignable or assigned hereunder to the Company,
applications for patents therefor, and patents granted thereon. In the event the Company is unable
for any reason to secure such cooperation, the Executive hereby irrevocably designates and appoints
the Company, its officers and agents as his agents and attorneys-in-fact to act, at the Company’s
sole expense, for and on the Executive’s behalf to execute and file any patent application and
assignments with the same legal force and effect as if executed by the Executive, and to do all
other lawfully permitted acts, in each case as reasonably necessary to further the prosecution and
issuance of patents thereon.

     (f) The Executive acknowledges and agrees that the Company is and will be the sole and
exclusive owner of all trademarks, service marks, patents, copyrights, trade dress, trade secrets,
business names, inventions, proprietary know-how and information of any type, whether or not in
writing and all other intellectual property of the Company created by the Executive during his
employment with the Company and relating to the Company’s business. The Executive further
acknowledges and agrees that any and all derivative works based on intellectual property subject to
this Section 10(f) hereof, created during the Term shall be exclusively owned by the Company.

9

 

     (g) Nothing in this Agreement shall be construed to grant the Executive any right, title or
interest in, or any license (express or implied) to use, any intellectual property owned or used by
the Company (including, without limitation, any trademarks, trade dress, service marks, copyrights,
trade secrets, patents or proprietary know-how or information of any type, whether written or not
written) except solely in the course of his employment with the Company.

     (h) There shall be no contractual or similar restrictions on the Executive’s conduct following
termination of his employment hereunder, other than restrictions expressly set forth in this
Agreement and restrictions enforceable solely by forfeiture of benefits to which he might otherwise
be entitled.

     11. Assignability; Binding Nature.

     (a) This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors, heirs (in the case of the Executive) and assigns.

     (b) No rights or obligations of the Company under this Agreement may be assigned or
transferred by the Company except that such rights and obligations may be assigned or
transferred pursuant to a merger, consolidation or other combination in which the Company is not
the continuing entity, or a sale or liquidation of all or substantially all of the business and
assets of the Company, provided that the assignee or transferee is the successor to all or
substantially all of the business and assets of the Company and such assignee or transferee
expressly assumes the liabilities, obligations and duties of the Company as set forth in this
Agreement. In the event of any merger, consolidation, other combination, sale of business and
assets, or liquidation as described in the preceding sentence, the Company shall use its best
reasonable efforts to cause such assignee or transferee to promptly and expressly assume the
liabilities, obligations and duties of the Company hereunder.

     (c) No rights or obligations of the Executive under this Agreement may be assigned or
transferred by the Executive other than his rights to compensation and benefits, which may be
transferred only by will or by operation of law, except to the extent otherwise provided in Section
15(e) hereof.

     12. Representations.

     (a) The Company represents and warrants that (i) it is fully authorized by action of its Board
(and of any other Person or body whose action is required) to enter into this Agreement and to
perform its obligations under it; (ii) the execution, delivery and performance of this Agreement by
it does not violate any applicable law, regulation, order, judgment or decree or any agreement,
arrangement, plan or corporate governance document to which it is a party or by which it is bound;
and (iii) upon the execution and delivery of this Agreement by the Parties, this Agreement shall be
its valid and binding obligation, enforceable against it in accordance with its terms, except to
the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar laws
affecting the enforcement of creditors’ rights generally.

     (b) The Executive represents and warrants that, to the best of his knowledge and belief, (i)
delivery and performance of this Agreement by him does not violate any applicable law, regulation,
judgment or decree or any agreement to which the Executive is a party or by which he is bound and
(ii) upon the execution and delivery of this Agreement by the Parties, this Agreement shall be a
valid and binding obligation of the Executive, enforceable against him in accordance with its
terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency
or similar laws affecting the enforcement of creditors’ rights generally.

     13. Resolution of Disputes. Any Claim arising out of or relating to this Agreement,
any other agreement between the Executive and the Company or its Affiliates, the Executive’s
employment with the Company, or any termination thereof (collectively, “Covered Claims”)
shall (except to the extent otherwise provided in Section 10(c) hereof with respect to certain
requests for injunctive relief) be resolved by binding confidential arbitration, to be held in Boca
Raton, Florida, 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 13.
Judgment upon the award rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof. The Company shall promptly pay all costs and expenses (including without
limitation reasonable attorneys’

10

 

fees and other charges of counsel) incurred by the Executive or his beneficiaries in resolving
any Covered Claim, subject to receiving a written undertaking from the recipient to reimburse any
such amounts paid to the extent that it is finally determined that the Company substantially
prevailed in respect of such Covered Claim.

     14. Notices. Any notice, consent, demand, request, or other communication given to a
Person in connection with this Agreement shall be in writing and shall be deemed to have been given
to such Person (x) when delivered personally to such Person or (y), provided that a written
acknowledgment of receipt is obtained, five days after being sent by prepaid certified or
registered mail, or two days after being sent by a nationally recognized overnight courier, to the
address (if any) specified below for such Person (or to such other address as such Person shall
have specified by ten days’ advance notice given in accordance with this Section 14) or (z), in the
case of the Company only, on the first business day after it is sent by facsimile to the facsimile
number set forth below (or to such other facsimile number as shall have specified by ten days’
advance notice given in accordance with this Section 14), with a confirmatory copy sent by
certified or registered mail or by overnight courier in accordance with this Section 14.

	 	 	 
	If to the Company:

	 	Benjamin C. Bishop, Jr.

50 North Laura Street

Suite 3625

Jacksonville, FL 32202

Phone #: (904) 354-5573

Fax #: (904) 354-7033
	 
	 	 
	and a copy to:

	 	Ettore A. Santucci, P.C.

Goodwin Procter LLP

Exchange Place

Boston, MA 02109

Phone # (617) 570-1000

Fax # (617) 523-1231
	 
	 	 
	If to the Executive:

	 	The address of his principal residence as it appears in the Company’s
records, with a copy to him (during the Term) at his office in Boca
Raton, Florida,
	 
	 	 
	and a copy to:

	 	Morrison Cohen LLP

909 Third Avenue, 27th Floor

New York, NY 10017

Attn: Robert M. Sedgwick

Phone: 212-735-8833

Fax: 212-735-8708

E-mail: rsedgwick@morrisoncohen.com
	 
	 	 
	If to a beneficiary

of the Executive:

	 	
The address most recently specified by the Executive or the beneficiary.

     15. Miscellaneous.

     (a) Entire Agreement. This Agreement contains the entire understanding and agreement between
the Parties concerning the specific subject matter hereof and supersedes in entirety, as of the
Effective Date and

11

 

excepting the provisions of Section 3(d) of the 2000 Employment Agreement, any prior
employment agreement between the Executive and the Company, provided, however, that nothing herein
shall limit or reduce any right or benefit that has accrued to the Executive as of the Effective
Date under the Prior Employment Agreement, nor shall anything herein reduce, or otherwise adversely
affect, any right or benefit to which the Executive would have been entitled, with respect any
award under the Prior Plan, under Sections 7(a) through 7(h), or Section 8 (a), of the Prior
Employment Agreement, as if such Sections had been incorporated verbatim into this Agreement.

     (b) Amendment or Waiver. No provision in this Agreement may be amended unless such amendment
is set forth in a writing that expressly refers to the provision of this Agreement that is being
amended and that is signed by the Executive and by an authorized (or apparently authorized) officer
of the Company. No waiver by any Person of any breach of any provision of this Agreement shall be
deemed a waiver of any similar or dissimilar provision at the same or any other time. To be
effective, any waiver must be set forth in a writing signed by the waiving Person and must
specifically refer to the provision of this Agreement whose breach is being waived.

     (c) Inconsistencies. In the event of any inconsistency between any provision of this Agreement
and any provision of any employee handbook, personnel manual, program, policy, or arrangement of
the Company or any of its Affiliates, or any provision of any agreement, plan, or corporate
governance document of any of them, the provisions of this Agreement shall control unless the
Executive otherwise agrees in a writing that expressly refers to the provision of this Agreement
whose control he is waiving.

     (d) Headings. The headings of the Sections and sub-sections contained in this Agreement are
for convenience only and shall not be deemed to control or affect the meaning or construction of
any provision of this Agreement.

     (e) Beneficiaries/References. The Executive shall be entitled, to the extent permitted under
applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or
benefit hereunder following the Executive’s death by giving written notice thereof. In the event of
the Executive’s death or a judicial determination of his incompetence, references in this Agreement
to the Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other
legal representative.

     (f) Survivorship. Except as otherwise set forth in this Agreement, the respective rights and
obligations of the Parties hereunder shall survive any termination of the Executive’s employment.

     (g) Severability. To the extent that any provision or portion of this Agreement shall be
determined to be invalid or unenforceable for any reason, in whole or in part, _the remaining
provisions of this Agreement shall remain in full force and effect so as to achieve the intentions
of the Parties, as set forth in this Agreement, to the maximum extent possible.

     (h) Withholding Taxes. The Company may withhold from any amount or benefit payable under this
Agreement taxes that it is required to withhold pursuant to any applicable law or regulation.

     (i) Governing Law. This Agreement shall be governed, construed, performed and enforced in
accordance with its express terms, and otherwise in accordance with the laws of the State of
Florida, without reference to principles of conflict of laws.

     (j) Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original and all of which together shall be deemed to be one and the same
instrument. Signatures delivered by facsimile shall be effective for all purposes.

12

 

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set
forth above.

	 	 	 	 	 
	 	CRT Properties, Inc.

 	 
	Date: January 13, 2005 	By:  	/s/ Benjamin C. Bishop, Jr.
 	 
	 	 	Name:  	Benjamin C. Bishop, Jr. 	 
	 	 	Title:  	Chairman of the Compensation Committee
of the Board of Directors of CRT
Properties, Inc. 	 
	 

	 	 	 	 	 
	 	The Executive

	Date: January 13, 2005
 	 
	 	/s/ Thomas J. Crocker
 	 
	 	Thomas J. Crocker 	 
	 	 	 

13

 

	 	 	 	 	 

EXHIBIT A

DEFINITIONS 

	a.  	“Affiliate” of a Person shall mean any Person that directly or indirectly controls,
is controlled by, or is under common control with, such Person.

	b.  	“Agreement” shall mean this Employment Agreement, which includes for all purposes its
Exhibit A.

	c.  	“Cause” shall mean:

	 	i.  	the Executive is convicted of, or pleads guilty or nolo contendere to, a felony
(other than a felony involving a traffic violation or as a result of vicarious liability);
or
	 
	 	ii.  	willful misconduct by the Executive with regard to the Company that has a material
adverse effect on the Company; provided that misconduct shall not be deemed “willful”
unless the Executive engages in it in bad faith and without a reasonable belief that it is
in, or not opposed to, the interests of the Company.

	d.  	“Change in Control” shall mean the occurrence of any of the following events:

	 	i.  	the Company ceases to be a publicly owned corporation having at least 500 stockholders;
	 
	 	ii.  	there occurs any event or series of events that would be required to be reported as a
change of control in response to item 1(a) on a Form 8-K filed by the Company under the
Securities Act of 1933 or in any other filing by the Company with the Securities and
Exchange Commission unless the person, as that term is defined or used in Section 13(d) or
14(d)(2) of the Securities Exchange Act of 1934 (for purposes of this definition,
“Person”), acquiring control was an affiliate of the Company as of the date the
stockholders of the Company approved the CRT Properties, Inc. 1998 Equity and Cash
Incentive Plan;
	 
	 	iii.  	the Company executes an agreement of acquisition, merger, or consolidation which
contemplates that after the effective date provided for in the agreement all or
substantially all of the business and/or assets of the Company will be controlled by
another Person; provided, however, for purposes of this subparagraph (iii) that if such an
agreement requires as a condition precedent approval by the Company’s shareholders of the
agreement or transaction, a Change in Control shall not be deemed to have taken place
unless and until such approval is secured and if the voting shareholders of such other
Person shall, immediately after such effective date, be substantially the same as the
voting shareholders of the Company immediately prior to such effective date, the execution
of such agreement shall not, by itself, constitute a Change in Control;
	 
	 	iv.  	any Person (other than the Company, a majority-owned subsidiary of the Company, an
employee benefit plan maintained by the Company or a majority-owned subsidiary of the
Company) becomes the beneficial owner, directly or indirectly (either as a result of the
acquisition of securities or as the result of an arrangement or understanding, including
the holding of proxies, with or among security holders), of securities of the Company
representing 25% or more of the votes that could then be cast in an election for members of
the Board unless within 15 days of being advised that such ownership level has been
reached, the Board adopts a resolution approving the acquisition of that level of
securities ownership by such Person;
	 
	 	v.  	during any period of twenty-four (24) consecutive months, commencing after the date the
Company’s shareholders approved the CRT Properties, Inc. 1998 Equity and Cash Incentive
Plan, individuals who at the beginning of such twenty-four (24) month period were directors
of the Company shall cease to constitute at least a majority of the Board, unless the
election of each director who was not a director at the beginning of such period has been
approved in advance by directors representing at least two-thirds of (i) the directors then
in office who were directors at the beginning of the twenty-four (24) month period or (ii)
the directors specified in clause (i) above plus directors whose election has been so
approved by directors specified in clause (i) above, or

 

 

	 	vi.  	(x) the Company combines with another entity and is the surviving entity, or (y) all or
substantially all of the assets or business of the Company are disposed of pursuant to a
sale, merger, consolidation, liquidation, dissolution or other transaction or series of
transactions (any event described in clause (x) or (y) being a “Triggering Event”), unless
the holders of Voting Securities of the Company immediately prior to such Triggering Event
own, directly or indirectly, by reason of their ownership of Voting Securities of the
Company immediately prior to such Triggering Event, at least a majority of the Voting
Securities (measured both by number of Voting Securities and by voting power and excluding
all Voting Securities owned by all new equity investors that invest in the Company
simultaneously with the occurrence of the Triggering Event) of (q) in the case of a
combination in which the Company is the surviving entity, the surviving entity and (r) in
any other case, the entity (if any) that succeeds to all or substantially all of the
Company’s business and assets.

	e.  	“Claim” shall include, without limitation, any claim, demand, request, investigation,
dispute, controversy, threat, discovery request, or request for testimony or information.

	f.  	“Code” shall mean the Internal Revenue Code of 1986, as amended. Any reference to a
particular section of the Code shall include any provision that modifies, replaces or
supersedes such section.

g. “Common Stock” shall mean common stock, par value $.01, of the Company.

	h.  	“Company Ending Value” shall mean the Company Ending Value, or equivalent, as used in
the OPP.

	i.  	“Confidential Information” shall mean all confidential or proprietary information
developed or used by the Company or any of its Affiliates, whether or not such information is
in tangible form, including any confidential or proprietary customer lists, marketing
strategies, plans and programs, trade secrets or other confidential knowledge or information
with respect to the operations or finances of the Company or any of its subsidiaries or with
respect to confidential or secret processes, services, techniques, customers or plans with
respect to the Company or its subsidiaries, but shall not include any information that (x) has
previously been disclosed to the public, or is in the public domain, other than as a result of
the Executive’s breach of Section 10(a) hereof, or (y) is known or generally available to the
public or within any trade or industry of the Company or any of its Affiliates.

	j.  	“Disability” shall mean the Executive’s inability, due to physical or mental
incapacity, to substantially perform his duties and responsibilities hereunder for either (x)
180 consecutive days or (y) an aggregate of 270 days in any 365 day period, in either case, as
determined below. The Executive may, and at the request of the Company shall, submit to
medical examinations by a physician selected by the Company, to whom the Executive has no
reasonable objection, at the times selected by the Company, to determine whether the Executive
is unable, due to physical or mental incapacity, to substantially perform his duties
hereunder. Such determination shall, if made reasonably and in good faith, be conclusive. If
the Executive unreasonably refuses to submit to such medical examinations, the Company’s
determination as to whether the Executive is unable, due to physical or mental incapacity, to
substantially perform his duties hereunder shall be conclusive.

	k.  	“Executive” shall have the meaning set forth in the preamble to this Agreement, as
modified by Section 15(e) hereof.

	l.  	“Good Reason” shall mean the occurrence of any of the following events during the
Term without the Executive’s prior written consent and without full cure prior to the date for
cure set forth in the Notice of Termination for Good Reason (with a minimum cure period of 10
days after the Executive provides the Company with the Notice of Termination for Good Reason,
reduced to 5 days in the case of events described in clauses (i) and (ii) of the definition of
Good Reason):

	 	i.  	any failure to continue the Executive as Chief Executive Officer of the Company and a
member of the Board (except in connection with the termination of the Executive’s
employment for Cause or Disability or as a result of the Executive’s death or temporarily
as a result of the Executive’s illness or other absence);

2

 

	 	ii.  	any material diminution in the Executive’s responsibilities or authorities (except in
connection with the termination of the Executive’s employment for Cause or Disability or as
a result of the Executive’s death or temporarily as a result of the Executive’s illness or
other absence); the assignment to him of duties that are materially inconsistent with, or
materially impair his ability to perform, the duties then assigned to him; or any change in
the reporting structure so that the Executive is required to report, in his role as Chief
Executive Officer of the Company, to any Person other than the Board and its Chairman;
	 
	 	iii.  	any relocation of the Executive’s principal office, or principal place of employment,
to a location that is more than 35 miles from (x) its location in Boca Raton, Florida, as
of the Effective Date and (y) the Executive’s principal residence at the time of the
relocation;
	 
	 	iv.  	any material breach by the Company of any of its obligations under Sections 3 through
6, 8 or 9 hereof, or of any of its representations or warranties in Section 12(a) hereof,
or
	 
	 	v.  	any failure by any successor to all or substantially all of the Company’s business or
assets (whether by reconstruction, amalgamation, combination, merger, consolidation, sale,
liquidation, dissolution or otherwise) to assume, in a writing delivered to the Executive
at the time of such successorship transaction, the Company’s obligations hereunder.

In addition, any termination by the Executive of his employment hereunder during the 90 day period
that commences 270 days after the occurrence of any Change in Control shall be deemed to be a
termination for Good Reason.

	m.  	“Measurement Period” shall have the meaning set forth in the OPP.

	n.  	“Notice of Termination for Good Reason” shall mean a notice that sets forth in
reasonable detail the circumstances claimed to provide a basis for termination for Good Reason
and that sets forth a date, not less than 10 days nor more than 60 days after the date the
Company receives the notice, by which cure of the circumstances claimed to constitute a basis
for termination for Good Reason is requested; provided, however, that in the case of
events described in clauses (i) and (ii) of the definition of Good Reason, the date may be
five days after the date the Company receives the notice.

	o.  	OPP” shall mean the outperformance program described in the Plan, and any successor
to such program.

	p.  	Person” shall mean any individual, corporation, partnership, limited liability
company, joint venture, trust, estate, board, committee, agency, body, employee benefit plan,
or other person or entity.

	q.  	“Prior Employment Agreement” shall have the meaning set forth in the first “Whereas”
clause in this Agreement.

	r.  	“Proceeding” shall include, without limitation, any actual, threatened or reasonably
anticipated action, suit or proceeding, whether civil, criminal, administrative,
investigative, appellate, formal, informal or other.

	s.  	“Restricted Stock” shall mean any compensatory restricted shares, phantom shares, or
analogous rights granted by or on behalf of the Company or any of its Affiliates, and any
security or right received in respect of any of the foregoing shares or rights.

	t.  	“Stock Option” shall mean any compensatory option or warrant to acquire securities of
the Company or any of its Affiliates; any compensatory stock appreciation right, phantom stock
option or analogous right granted by or on behalf of the Company or any of its Affiliates; and
any security or right received in respect of any of the foregoing options, warrants or rights.

	u.  	“Term” shall have the meaning set forth in Section 2 hereof.

3

 

	v.  	“Termination Date” shall mean the date on which the Executive’s employment hereunder
terminates in accordance with this Agreement.

	w.  	“Voting Securities” shall mean issued and outstanding securities of any class or
classes having general voting power, under ordinary circumstances in the absence of
contingencies, to elect the members of the Board.

	x.  	“2000 Employment Agreement” shall have the meaning set forth in Section 7(h) of this
Agreement.

4

 

APPENDIX I

FORM OF GENERAL RELEASE

     In consideration of certain payments and benefits to be provided to him pursuant to Section 7
of the Employment Agreement (the “Employment Agreement”) entered into as of January 1, 2005, by and
between himself and CRT Properties, Inc. (the “Company”), Thomas J. Crocker (the
“Executive”), for himself, his heirs, assigns, successors, executors, and administrators
(hereinafter collectively referred to as the “Releasors”), hereby fully releases and
discharges (i) the Company, and each of its predecessors, successors, and “Affiliates” (as such
term is defined in the Employment Agreement), forever and unconditionally, from any and all manner
of action, claim, demand, damages, cause of action, debt, sum of money, contract, covenant,
controversy, agreement, promise, judgment, and demand whatsoever, in law or equity, known or
unknown, existing or claimed to exist (hereinafter, collectively referred to as “Claims”)
arising from the beginning of time through the execution of this General Release and (ii) the
officers, directors, employees, agents, representatives, consultants, and independent contractors
of the parties listed in (i) and/or anyone else connected with each of them (the parties described
in (i) and (ii) collectively, the “Released Parties”), forever and unconditionally, from
any and all Claims that arise out of, or relate to, the Executive’s employment with the Company or
the termination of such employment arising from the beginning of time through the execution of this
General Release, in each case, including (without limitation) any such Claim (i) that is a
discrimination claim based on race, religion, color, national origin, age, sex, sexual orientation
or preference, disability or retaliation, (ii) that is based on any cause of action under the
following in each case as amended: the Age Discrimination in Employment Act of 1967, Title VII of
the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1968, the Equal
Pay Act of 1963, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of
1993, the Worker Adjustment and Retraining Notification Act, the Employee Retirement Income
Security Act of 1974 (except any valid claim to recover vested benefits, if applicable), (iii) that
is based on any applicable Executive Order program, and their state or local counterparts,
including, without limitation, the Florida Civil Rights Act of 1992, and/or any other federal,
state or local law, rule, regulation, constitution or ordinance, (iv) that arises under any public
policy or common law or under any practices or procedure of the Company, (v) that is based on any
claim for wrongful termination, back pay, future wage loss, and/or (vi) that is based on any other
claim, whether in tort, contract or otherwise, or any claim for costs, fees or other expenses,
including attorneys’ fees; provided, however, that nothing herein shall be deemed to affect or
release any Claim (x) that arises out of, or is preserved by, any of Sections 7 through 15 of the
Employment Agreement, including (without limitation) Section 7(h)(iv), or (y) that is brought as a
counter-claim in any proceeding. This General Release shall become null and void in the event that
the Company materially breaches, after the Executive’s employment under the Employment Agreement
terminates, any material obligation to the Executive that arises under, or is preserved by, the
Employment Agreement.

     By signing this General Release, the Executive acknowledges that:

     (i) he has read and fully understands the terms of this General Release and had the
opportunity to negotiate its terms at the time he entered into the Employment Agreement;

     (ii) he has been advised to consult with his attorneys, concerning the terms of this General
Release, and that he has done so to the extent he deems necessary;

     (iii) he had ample opportunity to negotiate through his attorneys concerning this General
Release at the time he entered into the Employment Agreement;

     (iv) he has agreed to execute this General Release knowingly, voluntarily, with such advice
from his counsel as he deemed appropriate, and was not subjected to any undue influence or coercion
in agreeing to its terms;

     (v) he has been given 21 days to consider this General Release, and acknowledges that in the
event that he executes this General Release prior to the expiration of the 21 day period, he hereby
waives the balance of said period;

     (vi) he will have seven (7) days following his execution of this General Release to revoke
this General Release, and this General Release shall not become effective or enforceable until the
revocation period has expired.

5

 

     Any revocation within this seven (7) day period must be submitted in writing and personally
delivered, or mailed, by 5:30 p.m. on the 7th day following his execution of this General Release
to
[              ], CRT Properties, Inc. [address]. No payments or benefits provided for in Section
7 of the Employment Agreement (other than payments and benefits that would have been due under
Section 7(h) of the Employment Agreement even if the termination of the Executive’s employment had
been for cause in accordance with Section 7(b) of the Employment Agreement) will be made until
after the seven (7) day period has expired and this General Release has become effective. If this
General Release is revoked by the Executive, then the Company shall not be required to provide any
of the payments and benefits otherwise required under Section 7 of the Employment Agreement (other
than payments and benefits that would have been due under Section 7(h) of the Employment Agreement
even if the termination of the Executive’s employment had been for cause in accordance with Section
7(b) of the Employment Agreement); and

     (vii) no provision of this General Release may be modified, changed, waived or discharged
unless such waiver, modification, change or discharge is agreed to in a writing that has been
signed by the Company and the Executive.

	 	 	 
	THE COMPANY

	 	THE EXECUTIVE
	 
	 	 
	 

	 	 
	Name:

	 	Thomas J. Crocker
	Title:
	 	 
	 
	 	 
	Date:

	 	Date:

6Employment agreement with Thomas Brockwell

 

EXHIBIT 10.4

EMPLOYMENT AGREEMENT

     AGREEMENT, entered into as of January 1, 2005 (the “Effective Date”) by and
between CRT Properties, Inc., a Florida corporation (together with its successors and assigns, the
“Company”), and Thomas C. Brockwell (the “Executive”);

W I T N E S S E T H:

     WHEREAS, the Company and the Executive are parties to an Employment Agreement effective as of
January 1, 2002 (the “Prior Employment Agreement”);

     WHEREAS, the Company desires to continue to employ the Executive as its Executive Vice
President and to enter into a new agreement embodying the terms of his employment; and

     WHEREAS, the Executive desires to accept such continued employment with the Company, subject
to the terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt of which is mutually acknowledged, the Company
and the Executive (the “Parties”) agree as follows:

     1. Definitions. Capitalized terms not otherwise defined herein shall have the meanings
set forth in Exhibit A.

     2. Term. The Parties hereby agree that the Prior Employment Agreement is terminated
and superseded, as of the Effective Date to the extent provided in Section 15(a) hereof. As of the
Effective Date, neither the Company nor the Executive shall have any rights or obligations pursuant
to the Prior Employment Agreement, except as otherwise provided herein (including, without
limitation, in Section 15(a) hereof). The Company hereby employs the Executive under this
Agreement, and the Executive hereby accepts such employment for a term commencing as of the
Effective Date and ending on December 31, 2007 (the “Original Term”); provided,
however, that the term of employment hereunder shall thereafter be automatically extended for an
unlimited number of additional one-year periods (each, an “Additional Term;” the Original
Term and any Additional Terms collectively, the “Term”) unless, at least 90 days prior to
the expiration of the Term, either Party gives notice to the other that such Party 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.

     3. Positions, Duties and Location.

     (a) During the Term, the Executive shall serve as the Executive Vice President of the Company;
shall have all authorities, duties and responsibilities customarily exercised by an individual
serving as the Executive Vice President at an entity of the size and nature of the Company; shall
have such other duties, authorities and responsibilities as the Company’s Chief Executive Officer
may from time to time reasonably designate, consistent with the foregoing; and shall report solely
and directly to the Company’s Chief Executive Officer.

     (b) During the Term, the Executive shall devote substantially all of his business time and
efforts to the business and affairs of the Company. However, nothing shall preclude the Executive
from the following: (i) serving on the boards of a reasonable number of business entities, trade
associations and charitable organizations (provided that the Executive shall give the Board or its
Chairman prior written notice before joining any new business board on or after the Effective
Date), (ii) engaging in charitable activities and community affairs, (iii) accepting and fulfilling
a reasonable number of speaking engagements, and (iv) managing his personal investments and
affairs, including his investment in the Crocker Realty Trust, Inc., Crocker & Associates L.P. and
their Affiliates; 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.

 

 

     (c) During the Term, the Executive’s principal office, and principal place of employment,
shall be in Boca Raton, Florida.

     4. Base Salary. Commencing as of the Effective Date, the Executive shall receive an
annualized base salary of $375,000, payable in accordance with the regular payroll practices
applicable to senior executives of the Company generally, but no less frequently than monthly
(“Base Salary”). The Base Salary shall be reviewed no less frequently than annually during
the Term for increase in the discretion of the compensation committee. The Base Salary shall not be
decreased at any time, or for any purpose, during the Term (including, without limitation, for the
purpose of determining benefits due under Section 7 hereof) without the prior written consent of
the Executive.

     5. Incentive Awards. During the Term, the Executive shall be a participant in the CRT
Properties, Inc. Senior Management Compensation Plan and any successor thereto (the
“Plan”), and shall accordingly be entitled to receive annual cash bonuses and long-term
incentive awards in accordance with the Plan. No amendment of the Plan, or of the terms of any
award granted under the Plan, that is adverse to the interests of the Executive shall be effective
as to bonuses and awards granted to, or earned by, the Executive during the Term. Any long-term
incentive awards granted to the Executive pursuant to the Compensation Plan for Senior Officers of
CRT Properties, Inc. (the “Prior Plan”) shall continue in effect, and no amendment of the Prior
Plan, or the terms of any award granted under the Prior Plan, that is adverse to the Executive
shall be effective as to bonuses and awards granted to, or earned by, the Executive under the Prior
Plan.

     6. Other Benefits.

     (a) Employee Benefits. During the Term, the Executive shall be entitled to participate
in all employee benefit plans, programs and arrangements made available to other senior executives
of the Company generally, including, without limitation, pension, profit-sharing, 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 senior
executives of the Company 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 Company policies, in each case
on terms and conditions that are no less favorable to him than those applying to other senior
executives of the Company 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 senior executives of
the Company generally. Nothing in this Section 6(a) shall be construed to require the Company to
establish or maintain any particular employee or post-retirement benefit plan, program or
arrangement except as expressly set forth elsewhere in this Agreement. The Company 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.
Notwithstanding the foregoing, the Executive shall not be entitled to participate in the Amended
and Restated Supplemental Executive Retirement Plan for Executives of CRT Properties, Inc. and
Participating Related Entities.

     (b) Fringe Benefits, Perquisites and Vacations. During the Term, the Executive shall
be entitled (i) to participate in all fringe benefits and perquisites made available to other
senior executives of the Company generally, in each case on terms and conditions that are no less
favorable to him than those applying to other senior executives of the Company generally and (ii)
to no less than two weeks’ paid vacation per calendar year (pro-rated for partial calendar years)
which, if not used, may be carried over from year to year with the approval of the Company’s Chief
Executive Officer.

     (c) Reimbursement of Business and Other Expenses. The Executive shall be promptly
reimbursed for all expenses reasonably incurred by him in connection with his service under this
Agreement or the Prior Employment Agreement, subject to documentation in accordance with reasonable
policies applying to senior executives of the Company generally. Such reimbursable expenses will
include the expenses (including, without limitation, transportation, meals and lodging costs)
incurred by the Executive for travel between the Company’s offices.

2

 

     7. Termination of Employment.

     (a) Termination Due to Death or Disability, Voluntary Termination and Termination for
Cause.

          (i) In the event that the Executive’s employment hereunder is terminated prior to expiration
of the Term (i) due to his death or Disability, (ii) on the Executive’s own initiative or (iii) for
Cause, the Executive, his estate or his beneficiaries (as the case may be) shall be entitled to the
benefits described in Section 7(d) hereof, shall not receive any annual cash bonus under Section 5
hereof for the year of termination and any awards granted to the Executive under Section 5 hereof
that are not both earned and vested as of the Termination Date shall be immediately forfeited.

          (ii) Neither Party may terminate the Executive’s employment hereunder for Disability without
first giving 15 days’ written notice of such termination to the other Party.

          (iii) No termination of the Executive’s employment hereunder for Cause shall be effective as a
termination for Cause unless the provisions of this Section 7(a)(iii) shall first have been
complied with. The Executive shall be given written notice by the Board of its intention to
terminate him for Cause, such notice (the “Cause Notice”) (x) to state in reasonable detail the
particular circumstances that constitute the grounds on which the proposed termination for Cause is
based, (y) to be given no later than 180 days after the Board first learns of such circumstances
and (z) to include a copy of a resolution duly adopted by at least two-thirds of the entire
membership of the Board at a meeting of the Board which was called for the purpose of considering
such termination and at which the Executive and his representative had the right to attend and
address the Board, finding that, in the good faith determination of the Board, Cause to terminate
the Executive’s employment hereunder on the stated grounds existed. The Executive shall have 10
days after receiving such Cause Notice in which to cure such grounds to the extent such cure is
possible. To the extent cure is not possible, the Executive’s employment hereunder shall be
terminated as of the 10th day after receiving the Cause Notice. If he fails to cure such grounds
within the permitted 10-day period, as determined in good faith by the Board, the Executive’s
employment hereunder shall be terminated as of the 10th day after receiving the Cause Notice. Any
determination by the Board that Cause existed, or that cure was not achieved, shall (for avoidance
of doubt) be subject to de novo review, at the Executive’s election, through arbitration in
accordance with Section 13 hereof.

     (b) Termination Without Cause. In the event that the Executive’s employment hereunder
is terminated by the Company prior to the expiration of the Term other than for
Disability or death or for Cause in accordance with Section 7(a) hereof, he shall, subject to the
provisions of Section 7(f) hereof, be entitled to:

          (i) an amount, payable in a lump sum as soon as practicable following the Termination Date,
equal to the product of (x) the sum of his annual Base Salary at the rate in effect as of
the Termination Date plus an amount equal to the average annual cash bonus earned by him
for the three (3) calendar years prior to the Termination Date, multiplied by (y)
the number of whole months remaining in the Term (but not less than 24) divided by
(z) 12;

          (ii) an annual cash bonus under the Plan for the year of termination, determined and paid at
the end of such year (x) as if the Executive’s employment hereunder had continued, (y) as if
“target” performance levels had been attained on all individual performance goals and (z) using
actual performance as against corporate goals, provided that the amount actually paid shall
be prorated based on the number of days during the year of termination on which the Executive was
employed by the Company;

          (iii) with respect to Restricted Stock, OPP benefits, and other awards under Section 5 hereof:
(A) any awards (including OPP awards made in the form of Restricted Stock) that vest solely based
on continued employment and are not otherwise vested as of the Termination Date shall vest as of
such date; (B) with respect to any awards (other than OPP benefits) that vest in whole, or in part,
based on performance (as distinct from continued service alone) and are not otherwise vested as of
the Termination Date, if a pertinent performance period (including, for this purpose, the longest
applicable multi-year performance period that could have applied had no termination of employment
occurred) has not ended on or prior to such date, the amount of the award (e.g., number of shares
of Restricted Stock) earned by the Executive shall be determined as of such date as if that
performance period had ended on such date (with performance accordingly measured against target
performance over the shortened

3

 

performance period rather than against target performance over the originally scheduled
performance period), and any portion of the award earned shall vest as of such date, without
proration; (C) with respect to the OPP, if the Termination Date occurs on or prior to the date that
awards are otherwise made in respect of the OPP, the size of the OPP performance pool shall be
determined using a Measurement Period that ends on the earlier of (x) the expiration of the
scheduled Measurement Period and (y) the Termination Date, and with the Company Ending Value
determined as of the earlier of such dates, based on the average closing market price of the
Company’s common stock for the ten consecutive trading days immediately prior to the earlier of
such dates, and any OPP awards shall be made as promptly as reasonably practicable thereafter, in
the form of fully vested shares or cash; and (D) except to the extent otherwise provided in an
applicable deferral election of the Executive, any shares, or other awards that vest pursuant to
this Section 7(b)(iii) shall pay out promptly after vesting;

          (iv) continued participation, for the Executive and his dependents, through the later of the
end of the Original Term and the first anniversary of the Termination Date, in all medical, dental,
vision, prescription drug, hospitalization and health insurance coverages and benefits in which
they were participating as of the Termination Date, on terms and conditions that are no less
favorable to them than those that apply to other participants generally, and with continuation
coverage benefits under group health plans as required by the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended, commencing following such period, provided, that
such entitlements shall be reduced to the extent that equivalent coverages and benefits (determined
on a coverage-by-coverage and benefit-by-benefit basis) are provided under the plans, programs or
arrangements of a subsequent employer, and provided, further, that to the extent
that the Executive, or any of his dependents, is precluded from continuing full participation in
any coverage or benefit as provided in this Section 7(b)(iv), the Executive shall be entitled to
the after-tax economic equivalent of any coverage or benefit foregone, for which purpose the
economic equivalent shall be deemed to be the total cost of obtaining such coverage or benefit on
an individual basis, with payment of such after tax economic equivalent to be made quarterly in
advance, without discount; and

          (v) the benefits described in Section 7(d) hereof.

     (c) Expiration of the Term. In the event that the Executive’s employment hereunder
terminates by expiration of the Term pursuant to notice of non-extension in accordance with Section
2 hereof, the Executive shall be entitled to:

          (i) if the applicable notice of non-extension was given by the Company, and solely with
respect to Restricted Stock, OPP benefits, and other awards under Section 5 hereof: (A) any awards
(including OPP awards made in the form of Restricted Stock) that vest solely based on continued
employment and are not otherwise vested as of the Termination Date shall vest as of such date; (B)
with respect to any awards (other than OPP benefits) that vest in whole, or in part, based on
performance (as distinct from continued service alone) and are not otherwise vested as of the
Termination Date, if a pertinent performance period has not ended on or prior to such date, the
amount of the award (e.g., number of shares of Restricted Stock) earned by the Executive shall be
determined as of such date as if that performance period had ended on such date (with performance
accordingly measured against target performance over the shortened performance period rather than
against target performance over the originally scheduled performance period), and any portion of
the award earned shall vest as of such date, without proration; (C) with respect to the OPP, if the
Termination Date occurs on or prior to the date that awards are otherwise made in respect of the
OPP, the size of the OPP performance pool shall be determined using a Measurement Period that ends
on the earlier of (x) the expiration of the scheduled Measurement Period, and (y) the Termination
Date, and with the Company Ending Value determined as of the earlier of such dates, based on the
average closing market price of the Company’s common stock for the ten consecutive trading days
immediately prior to the earlier of such dates, and any OPP awards shall be made as promptly as
reasonably practicable thereafter, in the form of fully vested shares or cash; and (D) except to
the extent otherwise provided in an applicable deferral election of the Executive, any shares or
other awards that vest pursuant to this Section 7(c)(iii) shall pay out promptly after vesting;

          (ii) if the applicable notice of non-extension was given by the Executive, and solely with
respect to Restricted Stock, OPP benefits, and other awards under Section 5 hereof: (A) any awards
(including OPP awards made in the form of Restricted Stock) that vest solely based on continued
employment and are not otherwise vested as of the Termination Date shall vest as of such date; (B)
with respect to any awards (other than OPP

4

 

benefits) that vest in whole, or in part, based on performance (as distinct from continued
service alone) and are not otherwise vested as of the Termination Date, if a pertinent performance
period (including, for this purpose, the longest applicable multi-year performance period that
could have applied had no termination of employment occurred) has not ended on or prior to such
date, the amount of the award (e.g., number of shares of Restricted Stock) earned by the Executive
shall be determined as of such date as if that performance period had ended on such date (with
performance accordingly measured against target performance over the shortened performance period
rather than against target performance over the originally scheduled performance period), and any
portion of the award earned shall vest as of such date, provided that the amount of any award
vesting pursuant to this subclause (B) shall be prorated based on the total number of days in the
shortened performance period as compared with the total number of days in the original scheduled
performance period; (C) with respect to the OPP, if the Termination Date occurs on or prior to the
date that awards are otherwise made in respect of the OPP, the size of the OPP performance pool
shall be determined using a Measurement Period that ends on the earlier of (x) the expiration of
the scheduled Measurement Period and (y) the Termination Date, and with the Company Ending Value
determined as of the earlier of such dates, based on the average closing market price of the
Company’s common stock for the ten consecutive trading days immediately prior to the earlier of
such dates, and any OPP awards shall be made as promptly as reasonably practicable thereafter, in
the form of fully vested shares or cash; and (D) except to the extent otherwise provided in an
applicable deferral election of the Executive, any shares or other awards that vest pursuant to
this Section 7(c)(ii) shall pay out promptly after vesting; and

          (iii) in either event, the benefits described in Section 7(d) hereof.

     (d) Miscellaneous. On any termination of the Executive’s employment hereunder, he
shall be entitled to:

          (i) Base Salary through the Termination Date;

          (ii) the balance of any annual, long-term, or other incentive award earned (but not yet paid
or forfeited) with respect to any performance period ending on or before the Termination Date;

          (iii) a lump-sum payment in respect of accrued but unused vacation days (up to 25 days) at his
Base Salary rate in effect as of the Termination Date; and

          (iv) other or additional benefits in accordance with applicable plans, programs and
arrangements of the Company and its Affiliates (including, without limitation, Sections 5, 6 and 8
hereof; any Stock Option, Restricted Stock or LTIP agreement or award; and any award under the
Prior Plan).

     (e) No Mitigation; No Offset. In the event of any termination of the Executive’s
employment hereunder, the Executive shall be under no obligation to seek other employment or
otherwise mitigate the obligations of the Company under this Agreement, and there shall be no
offset against amounts or benefits due the Executive under this Agreement or otherwise (except as
expressly set forth in Section 7(b)(iv) above) on account of (x) any Claim that the Company may
have against him, except upon the Company’s obtaining of a final unappealable judgment against him
or (y) any remuneration or other benefit earned or received by the Executive after such
termination. Any amounts due under this Section 7 are considered to be reasonable by the Company
and are not in the nature of a penalty. Notwithstanding the foregoing, the Company may offset
amounts due the Executive under this Agreement against any amounts then due under any loan made by
the Company to the Executive pursuant to any agreement entered into after the Effective Date.

     (f) Release. As a condition to receiving the payments and benefits described in
Section 7(b) or (g) hereof, the Executive must execute, deliver to the Company, and not revoke
(within the time period permitted by applicable law) a general release substantially in the form
attached hereto as Appendix I. No payments or benefits provided for in Section 7(b) or (g) hereof
(other than payments and benefits that would have been due, under Section 7(d) hereof, even if the
termination of the Executive’s employment had been for Cause in accordance with Section 7(a)(iii)
hereof) will be made until the general release has become effective.

5

 

     (g) Termination for Good Reason after a Change in Control. In the event that a Change
in Control occurs during the Term, the Executive may terminate his employment hereunder within 12
months following the Change in Control for Good Reason, on 10 days’ notice to the Company, if he
first provides the Company with a Notice of Termination for Good Reason and if the grounds claimed
in such notice to constitute Good Reason are not corrected prior to the date of requested cure set
forth in such notice. Such notice shall be provided within 90 days after the Executive first learns
of the occurrence of any of the events that are claimed in such notice to constitute Good Reason.
Any failure by the Executive to set forth in a Notice of Termination for Good Reason any facts or
circumstances that contribute to the showing of Good Reason shall not waive any right of the
Executive hereunder or preclude him from asserting such fact or circumstances in enforcing his
rights hereunder. For purposes of this Agreement, any termination of his employment hereunder by
the Executive during the 90 day period that commences 270 days after any Change in Control shall be
deemed to be a termination for Good Reason governed by this Section 7(g). In the event that the
Executive terminates his employment hereunder for Good Reason following a Change in Control prior
to the expiration of the Term, he shall, subject to the provisions of Section 7(f) hereof, have the
same entitlements as provided under Section 7(b) hereof in the case of a termination by the Company
without Cause.

     8. Change in Control.

     (a) In the event that a Change in Control occurs while the Executive is employed hereunder,
the Executive shall be entitled, to the following with respect to any Restricted Stock, OPP
benefit, or other award under Section 5 hereof: (A) any awards (including OPP awards made in the
form of Restricted Stock) that vest solely based on continued employment and are not otherwise
vested as of the date of such Change in Control shall vest as of such date; (B) with respect to any
awards (other than OPP benefits) that vest in whole, or in part, based on performance (as distinct
from continued service alone) and are not otherwise vested as of the date of such Change in
Control, if a pertinent performance period (including, for this purpose, the longest multi-year
performance period that could have applied had no Change in Control occurred) has not ended on or
prior to such date, the amount of the award (e.g., the number of shares of Restricted Stock) earned
by the Executive shall be determined as of such date as if that performance period had ended on
such date (with performance accordingly measured against target performance over the shortened
performance period rather than against target performance over the originally scheduled performance
period), and any portion of the award earned shall vest as of such date without proration; (C) with
respect to the OPP, if the date of such Change in Control occurs on or prior to the date that
awards are otherwise made in respect of the OPP, the size of the OPP performance pool shall be
determined using a Measurement Period that ends on the earlier of (x) the expiration of the
scheduled Measurement Period and (y) the date of such Change in Control, and with the Company
Ending Value determined as of the earlier of such dates, based on the average closing market price
of the Company’s common stock for the ten consecutive trading days immediately prior to the earlier
of such dates, and any OPP awards shall be made as promptly as reasonably practicable thereafter,
in the form of fully vested shares or cash; and (D) except to the extent otherwise provided in an
applicable deferral election of the Executive, any shares or other awards that vest pursuant to
this Section 8(a) shall pay out promptly after vesting.

     (b) In the event that a Change in Control occurs, the Executive shall be entitled to other or
additional benefits (if any) in accordance with applicable plans, programs and arrangements of the
Company and its Affiliates (including, without limitation, any outstanding Stock Option).

     (c) In the event that any payment or benefit made or provided to or for the benefit of the
Executive in connection with this Agreement, his employment with the Company, or any termination of
such employment (a “Payment”) is determined to be subject to any excise tax (“Excise
Tax”) imposed by Section 4999 of the Code (or any successor to such Section), the Executive
shall be entitled to receive, prior to the time any Excise Tax is payable with respect to such
Payment (through withholding or otherwise), an additional amount which, after the imposition of all
income, employment, excise and other taxes thereon, is equal to the sum of the Excise Tax on such
Payment plus any penalty and interest assessments associated with such Excise Tax. The
determination of whether any Payment is subject to an Excise Tax and, if so, the amount to be paid
to the Executive and the time of payment pursuant to this Section 8(c) shall be made by an
independent auditor (the “Auditor”) paid by the Company. The Auditor shall be a nationally
recognized United States public accounting firm selected by the Company unless the Executive
reasonably objects to the use of that firm, in which event the Auditor shall be a nationally
recognized United States public accounting firm chosen by the Executive in consultation with the
Company. The Parties shall

6

 

cooperate with each other in connection with any Proceeding or Claim relating to the existence
or amount of any liability for Excise Tax. All expenses relating to any such Proceeding or Claim
(including reasonable attorneys’ fees and other expenses incurred by the Executive in connection
therewith) shall be paid by the Company, promptly upon request by the Executive, and any such
payment shall (for the avoidance of doubt) be subject to gross-up under this Section 8(c) in the
event that the Executive is subject to Excise Tax on it.

     9. Indemnification.

     (a) If the Executive is made a party, is threatened to be made a party, or reasonably
anticipates being made a party, to any Proceeding by reason of the fact that he is or was a
director, officer, member, employee, agent, manager, trustee, consultant or representative of the
Company or any of its Affiliates or is or was serving at the request of the Company or any of its
Affiliates, or in connection with his service hereunder, as a director, officer, member, employee,
agent, manager, trustee, consultant or representative of another Person, or if any Claim is made,
is threatened to be made, or is reasonably anticipated to be made, against the Executive that
arises out of or relates to the Executive’s service in any of the foregoing capacities, then the
Executive shall promptly be indemnified and held harmless to the fullest extent permitted or
authorized by the Certificate of Incorporation or Bylaws of the Company, or if greater, by
applicable law, against any and all costs, expenses, liabilities and losses (including, without
limitation, attorneys’ and other professional fees and charges reasonably incurred, judgments,
interest, expenses of investigation reasonably incurred, penalties, fines, ERISA excise taxes or
penalties, and amounts paid or to be paid pursuant to settlements reasonably entered into) incurred
or suffered by the Executive in connection therewith, and such indemnification shall continue as to
the Executive even if he has ceased to be a director, officer, member, employee, agent, manager,
trustee, consultant or representative of the Company or other Person and shall inure to the benefit
of his heirs, executors and administrators. The Executive shall be entitled to prompt advancement
of any and all costs and expenses (including, without limitation, attorneys’ and other professional
fees and charges) incurred by him in connection with any such Proceeding or Claim, or in connection
with seeking to enforce his rights under this Section 9(a) hereof, any such advancement to be made
within 15 days after the Executive gives written notice, supported by reasonable documentation,
requesting such advancement. Such notice shall include an undertaking by the Executive to repay the
amount advanced if he is ultimately determined not to be entitled to indemnification against such
costs and expenses. The Executive shall be deemed to have met any standard of conduct required for
indemnification unless the contrary shall be established by the Company. Nothing in this Agreement
shall operate to limit or extinguish any right to indemnification, advancement of expenses, or
contribution that the Executive would otherwise have (including, without limitation, by agreement
or under applicable law).

     (b) A directors’ and officers’ liability insurance policy (or policies) shall be kept in
place, during the Term and thereafter until the sixth anniversary of the Termination Date,
providing coverage to the Executive that is no less favorable to him in any respect (including,
without limitation, with respect to scope, exclusions, amounts, and deductibles) than the coverage
then being provided to other present or former senior executives of the Company generally. This
Section 9(b) does not obligate the Company to maintain a directors’ and officers’ liability
insurance policy.

     10. Restrictive Covenants.

     (a) During the Term and at all times thereafter, the Executive shall not, without the prior
written consent of the Company, use any Confidential Information for any purpose other than on the
Company’s behalf or divulge, disclose or make accessible to any other Person any Confidential
Information except (i) to the Company and its Affiliates, or to any authorized agent or
representative of any of them, (ii) in connection with performing his duties hereunder, (iii) when
required to do so by law or by a court, governmental agency, legislative body, or arbitrator or
other Person with jurisdiction to order him to divulge, disclose or make accessible such
information, (iv) in the course of any Proceeding under Section 10(c) or 13 hereof, or (v) in
confidence to an attorney or other professional advisor for the purpose of securing professional
advice. In the event that the Executive is required to disclose any Confidential Information
pursuant to clause (iii) or (iv) of the immediately preceding sentence, he shall (A) promptly give
the Company notice that such disclosure is or may be made, and (B) cooperate with the Company, at
its reasonable request and sole expense, in seeking to protect the confidentiality of the
Confidential Information (including, in the event that the Company shall have paid for the
retention by him of his own counsel, only disclosing that portion of the Confidential Information
which he is advised by such counsel is legally required).

7

 

Upon any termination of his employment with the Company, he shall immediately return or
destroy all Confidential Information that is in physical (including electronic) form and is then in
his possession, including all notes, copies, reproductions, summaries, analysis, and extracts
thereof then in his possession, provided that the Executive may in any event retain his personal
rolodex, his personal correspondence files, and documents relating to his compensation, benefits
and other entitlements.

     (b) During the Term, and (provided that neither the Company nor any of its Affiliates shall,
on or after the Termination Date, have materially breached any of their material obligations to the
Executive under this Agreement or otherwise, which breach shall have continued uncured for 15 days
after the Executive has given written notice requesting cure) for a period of two (2) years
thereafter, the Executive shall not, without the prior written consent of the Company and other
than in connection with his services hereunder during the Term, become employed in an executive
capacity similar to the capacity in which he served the Company hereunder by any of the following:

          (i) any southeastern public office REIT; or

          (ii) any southeastern private office REIT with net assets in excess of $200 million.

     (c) In the event of any actual or threatened breach by the Executive of any of the provisions
of Sections 10(a) or (b) hereof, the Company shall be entitled to seek an injunction, through
arbitration in accordance with Section 13 hereof or from any court with jurisdiction over the
matter and the Executive, restraining the Executive from violating such provision, without the
necessity of proving actual damages or the inadequacy of a legal remedy.

     (d) All work performed by the Executive during the course of his employment with the Company
(whether alone or with others) in (i) creating, developing, modifying, enhancing or maintaining
computer programs, databases and the like and/or (ii) creating, developing or modifying works to
which copyright protection may attach, shall be considered “works made for hire” to the extent
permitted under applicable copyright law and shall be the exclusive property of the Company. To the
extent such works are not considered works made for hire, all right, title and interest in and to
such works, including, but not limited to, the copyright, renewals and extensions thereof, is
hereby assigned to the Company and the Executive agrees to execute, promptly upon the Company’s
reasonable request and at its sole expense, any documents in relation to said assignment as are
reasonably necessary to perfect the Company’s exclusive ownership therein.

     (e) The Executive hereby assigns all right, title and interest in and to all inventions and
methods (whether or not patentable or reduced to practice), improvements, discoveries, techniques,
formulae and processes, created, developed or conceived by the Executive during the Term and
relating to the Company’s business. After termination of his employment, the Executive will
cooperate with the Company, at the Company’s reasonable request and sole expense, in the protection
and enforcement of the rights and property of the Company in any invention, method, improvement,
discovery, techniques, formulae or process, assignable or assigned hereunder to the Company,
applications for patents therefor, and patents granted thereon. In the event the Company is unable
for any reason to secure such cooperation, the Executive hereby irrevocably designates and appoints
the Company, its officers and agents as his agents and attorneys-in-fact to act, at the Company’s
sole expense, for and on the Executive’s behalf to execute and file any patent application and
assignments with the same legal force and effect as if executed by the Executive, and to do all
other lawfully permitted acts, in each case as reasonably necessary to further the prosecution and
issuance of patents thereon.

     (f) The Executive acknowledges and agrees that the Company is and will be the sole and
exclusive owner of all trademarks, service marks, patents, copyrights, trade dress, trade secrets,
business names, inventions, proprietary know-how and information of any type, whether or not in
writing and all other intellectual property of the Company created by the Executive during; his
employment with the Company and relating to the Company’s business. The Executive further
acknowledges and agrees that any and all derivative works based on intellectual property subject to
this Section 10(f) hereof, created during the Term shall be exclusively owned by the Company.

     (g) Nothing in this Agreement shall be construed to grant the Executive any right, title or
interest in, or any license (express or implied) to use, any intellectual property owned or used by
the Company (including,

8

 

without limitation, any trademarks, trade dress, service marks, copyrights, trade secrets,
patents or proprietary know-how or information of any type, whether written or not written) except
solely in the course of his employment with the Company.

     (h) There shall be no contractual or similar restrictions on the Executive’s conduct following
termination of his employment hereunder, other than restrictions expressly set forth in this
Agreement and restrictions enforceable solely by forfeiture of benefits to which he might otherwise
be entitled.

     11. Assignability; Binding Nature.

     (a) This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors, heirs (in the case of the Executive) and assigns.

     (b) No rights or obligations of the Company under this Agreement may be assigned or
transferred by the Company except that such rights and obligations may be assigned or
transferred pursuant to a merger, consolidation or other combination in which the Company is not
the continuing entity, or a sale or liquidation of all or substantially all of the business and
assets of the Company, provided that the assignee or transferee is the successor to all or
substantially all of the business and assets of the Company and such assignee or transferee
expressly assumes the liabilities, obligations and duties of the Company as set forth in this
Agreement. In the event of any merger, consolidation, other combination, sale of business and
assets or liquidation as described in the preceding sentence, the Company shall use its best
reasonable efforts to cause such assignee or transferee to promptly and expressly assume the
liabilities, obligations and duties of the Company hereunder.

     (c) No rights or obligations of the Executive under this Agreement may be assigned or
transferred by the Executive other than his rights to compensation and benefits, which may be
transferred only by will or by operation of law, except to the extent otherwise provided in Section
15(e) hereof.

     12. Representations.

     (a) The Company represents and warrants that (i) it is fully authorized by action of its Board
(and of any other Person or body whose action is required) to enter into this Agreement and to
perform its obligations under it; (ii) the execution, delivery and performance of this Agreement by
it does not violate any applicable law, regulation, order, judgment or decree or any agreement,
arrangement, plan or corporate governance document to which it is a party or by which it is bound;
and (iii) upon the execution and delivery of this Agreement by the Parties, this Agreement shall be
its valid and binding obligation, enforceable against it in accordance with its terms, except to
the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar laws
affecting the enforcement of creditors’ rights generally.

     (b) The Executive represents and warrants that, to the best of his knowledge and belief (i)
delivery and performance of this Agreement by him does not violate any applicable law, regulation,
judgment or decree or any agreement to which the Executive is a party or by which he is bound and
(ii) upon the execution and delivery of this Agreement by the Parties, this Agreement shall be a
valid and binding obligation of the Executive, enforceable against him in accordance with its
terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency
or similar laws affecting the enforcement of creditors’ rights generally.

     13. Resolution of Disputes. Any Claim arising out of or relating to this Agreement,
any other agreement between the Executive and the Company or its Affiliates, the Executive’s
employment with the Company, or any termination thereof (collectively, “Covered Claims”)
shall (except to the extent otherwise provided in Section 10(c) hereof with respect to certain
requests for injunctive relief) be resolved by binding confidential arbitration, to be held in Boca
Raton, Florida, 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 13.
Judgment upon the award rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof. The Company shall promptly pay all costs and expenses (including without
limitation reasonable attorneys’ fees and other charges of counsel) incurred by the Executive or
his beneficiaries in resolving any Covered Claim, subject to

9

 

receiving a written undertaking from the recipient to reimburse any such amounts paid to the
extent that it is finally determined that the Company substantially prevailed in respect of such
Covered Claim.

     14. Notices. Any notice, consent, demand, request, or other communication given to a
Person in connection with this Agreement shall be in writing and shall be deemed to have been given
to such Person (x) when delivered personally to such Person or (y), provided that a written
acknowledgment of receipt is obtained, five days after being sent by prepaid certified or
registered mail, or two days after being sent by a nationally recognized overnight courier, to the
address (if any) specified below for such Person (or to such other address as such Person shall
have specified by ten days’ advance notice given in accordance with this Section 14) or (z), in the
case of the Company only, on the first business day after it is sent by facsimile to the facsimile
number set forth below (or to such other facsimile number as shall have specified by ten days’
advance notice given in accordance with this Section 14), with a confirmatory copy sent by
certified or registered mail or by overnight courier in accordance with this Section 14.

	 	 	 
	If to the Company:

	 	Benjamin C. Bishop, Jr.

50 North Laura Street

Suite 3625

Jacksonville, FL 32202

Phone #: (904) 354-5573

Fax #: (904) 354-7033
	 
	 	 
	and a copy to:

	 	Ettore A. Santucci, P.C.

Goodwin Procter LLP

Exchange Place

Boston, MA 02109

Phone # (617) 570-1000

Fax # (617) 523-1231
	 
	 	 
	If to the Executive:

	 	The address of his principal residence as it appears in the Company’s
records, with a copy to him (during the Term) at his office in Boca
Raton, Florida,
	 
	 	 
	and a copy to:

	 	Morrison Cohen LLP

909 Third Avenue, 27th Floor

New York, NY 10017

Attn: Robert M. Sedgwick

Phone: 212-735-8833

Fax: 212-735-8708

E-mail: rsedgwick@morrisoncohen.com
	 
	 	 
	If to a beneficiary

of the Executive:

	 	
The address most recently specified by the Executive or the beneficiary.

     15. Miscellaneous.

     (a) Entire Agreement. This Agreement contains the entire understanding and agreement
between the Parties concerning the specific subject matter hereof and supersedes in entirety, as of
the Effective Date, any prior employment agreement between the Executive and the Company,
provided however, that nothing herein shall limit or reduce any right or benefit
that has accrued to the Executive as of the Effective Date under the Prior Employment Agreement,
nor shall anything herein reduce, or otherwise adversely affect, any right or benefit to which the

10

 

Executive would have been entitled, with respect to any award under the Prior Plan, under
Sections 7(a) through 7(d) or Section 8(a) of the Prior Employment Agreement, as if such Sections
had been incorporated verbatim into this Agreement.

     (b) Amendment or Waiver. No provision in this Agreement may be amended unless such
amendment is set forth in a writing that expressly refers to the provision of this
Agreement that is being amended and that is signed by the Executive and by an authorized (or
apparently authorized) officer of the Company. No waiver by any Person of any breach of any
provision of this Agreement shall be deemed a waiver of any similar or dissimilar provision at the
same or any other time. To be effective, any waiver must be set forth in a writing signed by the
waiving Person and must specifically refer to the provision of this Agreement whose breach is being
waived.

     (c) Inconsistencies. In the event of any inconsistency between any provision of this
Agreement and any provision of any employee handbook, personnel manual, program, policy, or
arrangement of the Company or any of its Affiliates, or any provision of any agreement, plan, or
corporate governance document of any of them, the provisions of this Agreement shall control unless
the Executive otherwise agrees in a writing that expressly refers to the provision of this
Agreement whose control he is waiving.

     (d) Headings. The headings of the Sections and sub-sections contained in this
Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any provision of this Agreement.

     (e) Beneficiaries/References. The Executive shall be entitled, to the extent permitted
under applicable law, to select and change a beneficiary or beneficiaries to receive any
compensation or benefit hereunder following the Executive’s death by giving written notice thereof.
In the event of the Executive’s death or a judicial determination of his incompetence, references
in this Agreement to the Executive shall be deemed, where appropriate, to refer to his beneficiary,
estate or other legal representative.

     (f) Survivorship. Except as otherwise set forth in this Agreement, the respective
rights and obligations of the Parties hereunder shall survive any termination of the Executive’s
employment.

     (g) Severability. To the extent that any provision or portion of this Agreement shall
be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining
provisions of this Agreement shall remain in full force and effect so as to achieve the intentions
of the Parties, as set forth in this Agreement, to the maximum extent possible.

     (h) Withholding Taxes. The Company may withhold from any amount or benefit payable
under this Agreement taxes that it is required to withhold pursuant to any applicable law or
regulation.

     (i) Governing Law. This Agreement shall be governed, construed, performed and enforced
in accordance with its express terms, and otherwise in accordance with the laws of the State of
Florida, without reference to principles of conflict of laws.

     (j) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall be deemed to be one and the same
instrument. Signatures delivered by facsimile shall be effective for all purposes.

11

 

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set
forth above.

	 	 	 	 	 
	 	CRT Properties, Inc.

 	 
	Date: January 13, 2005 	By:  	/s/ Benjamin C. Bishop, Jr.
 	 
	 	 	Name:  	Benjamin C. Bishop, Jr. 	 
	 	 	Title:  	Chairman of the Compensation Committee
of the Board of Directors of CRT
Properties, Inc. 	 
	 

	 	 	 	 	 
	 	The Executive

	Date: January 13, 2005 	  		 
	 	/s/ Thomas C. Brockwell
 	 
	 	Thomas C. Brockwell 	 
	 	 	 

12

 

	 	 	 	 	 

EXHIBIT A

DEFINITIONS

	a.  	“Affiliate” of a Person shall mean any Person that directly or indirectly controls,
is controlled by, or is under common control with, such Person.

	b.  	“Agreement” shall mean this Employment Agreement, which includes for all purposes its
Exhibit A.

	c.  	“Cause” shall mean:

	 	i.  	the Executive is convicted of, or pleads guilty or nolo contendere to,
a felony (other than a felony involving a traffic violation or as a result of vicarious
liability); or
	 
	 	ii.  	willful misconduct by the Executive with regard to the Company that has a material
adverse effect on the Company; provided that misconduct shall not be deemed “willful”
unless the Executive engages in it in bad faith and without a reasonable belief that it is
in, or not opposed to, the interests of the Company.

	d.  	“Change in Control” shall mean the occurrence of any of the following events:

	 	i.  	the Company ceases to be a publicly owned corporation having at least 500 stockholders;
	 
	 	ii.  	there occurs any event or series of events that would be required to be reported as a
change of control in response to item 1(a) on a Form 8-K filed by the Company under the
Securities Act of 1933 or in any other filing by the Company with the Securities and
Exchange Commission unless the person, as that term is defined or used in Section 13(d) or
14(d)(2) of the Securities Exchange Act of 1934 (for purposes of this definition,
“Person”), acquiring control is an affiliate of the Company as of the date the stockholders
of the Company approved the CRT Properties, Inc. 1998 Equity and Cash Incentive Plan;
	 
	 	iii.  	the Company executes an agreement of acquisition, merger, or consolidation which
contemplates that after the effective date provided for in the agreement all or
substantially all of the business and/or assets of the Company will be controlled by
another Person; provided, however, for purposes of this subparagraph (iii) that if such an
agreement requires as a condition precedent approval by the Company’s shareholders of the
agreement or transaction, a Change in Control shall not be deemed to have taken place
unless and until such approval is secured and if the voting shareholders of such other
Person shall, immediately after such effective date, be substantially the same as the
voting shareholders of the Company immediately prior to such effective date, the execution
of such agreement shall not, by itself, constitute a Change in Control;
	 
	 	iv.  	any Person (other than the Company, a majority-owned subsidiary of the Company, an
employee benefit plan maintained by the Company or a majority-owned subsidiary of the
Company) becomes the beneficial owner, directly or indirectly (either as a result of the
acquisition of securities or as the result of an arrangement or understanding, including
the holding of proxies, with or among security holders), of securities of the Company
representing 25% or more of the votes that could then be cast in an election for members of
the Board unless within 15 days of being advised that such ownership level has been
reached, the Board adopts a resolution approving the acquisition of that level of
securities ownership by such Person;
	 
	 	v.  	during any period of twenty-four (24) consecutive months, commencing after the date the
Company’s shareholders approved the CRT Properties, Inc. 1998 Equity and Cash Incentive
Plan, individuals who at the beginning of such twenty-four (24) month period were directors
of the Company shall cease to constitute at least a majority of the Board, unless the
election of each director who was not a director at the beginning of such period has been
approved in advance by directors representing at least two-thirds of (i) the directors then
is in office who were directors at the beginning of the twenty-four (24) month period or
(ii) the directors specified in clause (i) above plus directors whose election has been so
approved by directors specified in clause (i) above, or

13

 

	 	vi.  	(x) the Company combines with another entity and is the surviving entity, or (y) all or
substantially all of the assets or business of the Company are disposed of pursuant to a
sale, merger, consolidation, liquidation, dissolution or other transaction or series of
transactions (any event described in clause (x) or (y) being a “Triggering Event”), unless
the holders of Voting Securities of the Company immediately prior to such Triggering Event
own, directly or indirectly, by reason of their ownership of Voting Securities of the
Company immediately prior to such Triggering Event, at least a majority of the Voting
Securities (measured both by number of Voting Securities and by voting power and excluding
all Voting Securities owned by all new equity investors that invest in the Company
simultaneously with the occurrence of the Triggering Event) of (q) in the case of a
combination in which the Company is the surviving entity, the surviving entity and (r) in
any other case, the entity (if any) that succeeds to all or substantially all of the
Company’s business and assets.

	e.  	“Claim” shall include, without limitation, any claim, demand, request, investigation,
dispute, controversy, threat, discovery request, or request for testimony or information.

	f.  	“Code” shall mean the Internal Revenue Code of 1986, as amended. Any reference to a
particular section of the Code shall include any provision that modifies, replaces or
supersedes such section.

	g.  	“Common Stock” shall mean common stock, par value $.01, of the Company.

	h.  	“Company Ending Value” shall mean the Company Ending Value, or equivalent, as used in
the OPP.

	i.  	“Confidential Information” shall mean all confidential or proprietary information
developed or used by the Company or any of its Affiliates, whether or not such information is
in tangible form, including any confidential or proprietary customer lists, marketing
strategies, plans and programs, trade secrets or other confidential knowledge or information
with respect to the operations or finances of the Company or any of its subsidiaries or with
respect to confidential or secret processes, services, techniques, customers or plans with
respect to the Company or its subsidiaries, but shall not include any information that (x) has
previously been disclosed to the public, or is in the public domain, other than as a result of
the Executive’s breach of Section 10(a) hereof, or (y) is known or generally available to the
public or within any trade or industry of the Company or any of its Affiliates.

	j.  	“Disability” shall mean the Executive’s inability, due to physical or mental
incapacity, to substantially perform his duties and responsibilities hereunder for either (x)
180 consecutive days or (y) an aggregate of 270 days in any 365 day period, in either case, as
determined below. The Executive may, and at the request of the Company shall, submit to
medical examinations by a physician selected by the Company, to whom the Executive has no
reasonable objection, at the times selected by the Company, to determine whether the Executive
is unable, due to physical or mental incapacity, to substantially perform his duties
hereunder. Such determination shall, if made reasonably and in good faith, be conclusive. If
the Executive unreasonably refuses to submit to such medical examinations, the Company’s
determination as to whether the Executive is unable, due to physical or mental incapacity, to
substantially perform his duties hereunder shall be conclusive.

	k.  	“Executive” shall have the meaning set forth in the preamble to this Agreement, as
modified by Section 15(e) hereof.

	l.  	“Good Reason” shall mean the occurrence of any of the following events during the
Term without the Executive’s prior written consent and without full cure prior to the date for
cure set forth in the Notice of Termination for Good Reason (with a minimum cure period of 10
days after the Executive provides the Company with the Notice of Termination for Good Reason
reduced to five days in the case of events described in clauses (i) and (ii) of the definition
of Good Reason):

	 	i.  	any failure to continue the Executive as Executive Vice President of the Company
(except in connection with the termination of the Executive’s employment for Cause or
Disability or as a result of the Executive’s death or temporarily as a result of the
Executive’s illness or other absence):

14

 

	 	ii.  	any material diminution in the responsibilities or authorities which the Executive
possessed immediately prior to the Change in Control (except in connection with the
termination of the Executive’s employment for Cause or Disability or as a result of the
Executive’s death or temporarily as a result of the Executive’s illness or other absence);
the assignment to him of duties that are materially inconsistent with, or materially impair
his ability to perform, the duties assigned to him immediately prior to the Change in
Control; or any change in the reporting structure so that the Executive is required to
report, in his role as Executive Vice President of the Company, to any Person other than
the Company’s Chief Executive Officer, the Board or the Chairman of the Board;
	 
	 	iii.  	any relocation of the Executive’s principal office, or principal place of employment,
to a location that is more than 35 miles from (x) its location immediately prior to the
Change in Control and (y) the Executive’s principal residence at the time of the
relocation;
	 
	 	iv.  	any material breach by the Company of any of its obligations under Sections 3 through
6, 8 or 9 hereof, or of any of its representations or warranties in Section 12(a) hereof;
or
	 
	 	v.  	any failure by any successor to all or substantially all of the Company’s business or
assets (whether by reconstruction, amalgamation, combination, merger, consolidation, sale,
liquidation, dissolution or otherwise) to assume, in a writing delivered to the Executive
at the time of such successorship transaction, the Company’s obligations hereunder.

	m.  	“Measurement Period” shall have the meaning set
forth in the OPP.

	n.  	“Notice of Termination for Good Reason” shall mean a notice that sets forth in
reasonable detail the circumstances claimed to provide a basis for termination for Good Reason
and that sets forth a date, not less than 10 days nor more than 60 days after the date the
Company receives the notice, by which cure of the circumstances claimed to constitute a basis
for termination for Good Reason is requested; provided, however, that in the case of events
described in clauses (i) and (ii) of the definition of Good Reason, the date may be five days
after the date the Company receives the notice.

	o.  	“OPP” shall mean the outperformance program described in the Plan, and any successor to such
program.

	p.  	Person” shall mean any individual, corporation, partnership, limited liability
company, joint venture, trust, estate, board, committee, agency, body, employee benefit plan,
or other person or entity.

	q.  	“Prior Employment Agreement” shall have the meaning set forth in the first “Whereas”
clause in this Agreement.

	r.  	“Proceeding” shall include, without limitation, any actual, threatened or reasonably
anticipated action, suit or proceeding, whether civil, criminal, administrative,
investigative, appellate, formal, informal or other.

	s.  	“Restricted Stock” shall mean any compensatory restricted shares, phantom shares, or
analogous rights granted by or on behalf of the Company or any of its Affiliates, and any
security or right received in respect of any of the foregoing shares or rights.

	t.  	“Stock Option” shall mean any compensatory option or warrant to acquire securities of
the Company or any of its Affiliates; any compensatory stock appreciation right, phantom stock
option or analogous right granted by or on behalf of the Company or any of its Affiliates; and
any security or right received in respect of any of the foregoing options, warrants or rights.

	u.  	“Term” shall have the meaning set forth in Section 2 hereof.

	v.  	“Termination Date” shall mean the date on which the Executive’s employment hereunder
terminates in accordance with this Agreement.

	w.  	“Voting Securities” shall mean issued and outstanding securities of any class or
classes having general voting power, under ordinary circumstances in the absence of
contingencies, to elect the members of the Board.

15

 

APPENDIX I

FORM OF GENERAL RELEASE

     In consideration of certain payments and benefits to be provided to him pursuant to Section 7
of the Employment Agreement (the “Employment Agreement”) entered into as of January 1, 2002, by and
between himself and CRT Properties, Inc. (the “Company”), Thomas C. Brockwell (the
“Executive,”), for himself, his heirs, assigns, successors, executors, and administrators
(hereinafter collectively referred to as the “Releasors”), hereby fully releases and
discharges (i) the Company, and each of its predecessors, successors, and “Affiliates” (as such
term is defined in the Employment Agreement), forever and unconditionally, from any and all manner
of action, claim, demand, damages, cause of action, debt, sum of money, contract, covenant,
controversy, agreement, promise, judgment, and demand whatsoever, in law or equity, known or
unknown, existing or claimed to exist (hereinafter, collectively referred to as “Claims”)
arising from the beginning of time through the execution of this General Release and (ii) the
officers, directors, employees, agents, representatives, consultants, and independent contractors
of the parties listed in (i) and/or anyone else connected with each of them (the parties described
in (i) and (ii) collectively, the “Released Parties”), forever and unconditionally, from
any and all Claims that arise out of, or relate to, the Executive’s employment with the Company or
the termination of such employment arising from the beginning of time through the execution of this
General Release, in each case, including (without limitation) any such Claim (i) that is a
discrimination claim based on race, religion, color, national origin, age, sex, sexual orientation
or preference, disability or retaliation, (ii) that is based on any cause of action under the
following in each case as amended: the Age Discrimination in Employment Act of 1967, Title VII of
the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1968, the Equal
Pay Act of 1963, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of
1993, the Worker Adjustment and Retraining Notification Act, the Employee Retirement Income
Security Act of 1974 (except any valid claim to recover vested benefits, if applicable), (iii) that
is based on any applicable Executive Order program, and their state or local counterparts,
including, without limitation, the Florida Civil Rights Act of 1992, and/or any other federal,
state or local law, rule, regulation, constitution or ordinance, (iv) that arises under any public
policy or common law or under any practices or procedure of the Company, (v) that is based on any
claim for wrongful termination, back pay, future wage loss, and/or (vi) that is based on any other
claim, whether in tort, contract or otherwise, or any claim for costs, fees or other expenses,
including attorneys’ fees; provided, however, that nothing herein shall be deemed to affect or
release any Claim (x) that arises out of, or is preserved by, any of Sections 7 through 15 of the
Employment Agreement, including (without limitation) Section 7(d)(iv), or (y) that is brought as a
counter-claim in any proceeding. This General Release shall become null and void in the event that
the Company materially breaches, after the Executive’s employment under the Employment Agreement
terminates, any material obligation to the Executive that arises under, or is preserved by, the
Employment Agreement.

     By signing this General Release, the Executive acknowledges that:

	 	i.  	he has read and fully understands the terms of this General Release and
had the opportunity to negotiate its terms at the time he entered into the
Employment Agreement;
	 
	 	ii.  	he has been advised to consult with his attorneys, concerning the terms
of this General Release, and that he has done so to the extent he deems necessary;
	 
	 	iii.  	he had ample opportunity to negotiate through his attorneys concerning
this General Release at the time he entered into the Employment Agreement;
	 
	 	iv.  	he has agreed to execute this General Release knowingly, voluntarily,
with such advice from his counsel as he deemed appropriate, and was not subjected
to any undue influence or coercion in agreeing to its terms;
	 
	 	v.  	he has been given 21 days to consider this General Release, and
acknowledges that in the event that he executes this General Release prior to the
expiration of the 21 day period, he hereby waives the balance of said period;

16

 

	 	vi.  	he will have seven (7) days following his execution of this General
Release to revoke this General Release, and this General Release shall not become
effective or enforceable until the revocation period has expired. Any revocation
within this seven (7) day period must be submitted in writing and personally
delivered, or mailed, by 5:30 p.m. on the 7th day following his
execution of this General Release to [ ], CRT Properties, Inc. [address]. No
payments or benefits provided for in Section 7 of the Employment Agreement (other
than payments and benefits that would have been due under Section 7(d) of the
Employment Agreement even if the termination of the Executive’s employment had been
for cause in accordance with Section 7(a)(iii) of the Employment Agreement) will be
made until after the seven (7) day period has expired and this General Release has
become effective. If this General Release is revoked by the Executive, then the
Company shall not be required to provide any of the payments and benefits otherwise
required under Section 7 of the Employment Agreement (other than payments and
benefits that would have been due under Section 7(d) of the Employment Agreement
even if the termination of the Executive’s employment had been for cause in
accordance with Section 7(a)(iii) of the Employment Agreement); and
	 
	 	vii.  	no provision of this General Release may be modified, changed, waived
or discharged unless such waiver, modification, change or discharge is agreed to in
a writing that has been signed by the Company and the Executive.

	 	 	 
	THE COMPANY

	 	THE EXECUTIVE
	 
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:

	 	Thomas C. Brockwell
	 
	 	 
	 
	 	 
	Date:

	 	Date:

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]