Document:

EX-10.2

 

Exhibit 10.2

AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT

     THIS AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT (this “Agreement”), is between
Developers Diversified Realty Corporation, an Ohio corporation (the “Employer”), and David M.
Jacobstein (“Executive”) made this eighth day of February, 2007.

RECITALS

     WHEREAS, Executive is presently employed by Employer;

     WHEREAS, Employer wishes to induce Executive to continue as its employee on and after May 8,
2007 (the “Effective Date”) and, accordingly, to provide certain security to Executive in the event
of a “Change in Control” (as hereinafter defined);

     WHEREAS, Employer believes that it is in the best interest of its shareholders for Executive
to continue on and after the Effective Date in his position on an objective and impartial basis and
without distraction or conflict of interest as a result of a possible or actual Change in Control;

     WHEREAS, in consideration of this Agreement Executive is willing to continue as Employer’s
employee; and

     WHEREAS, Employer and Executive desire for this Amended and Restated Change in Control
Agreement to amend and supersede on and after the Effective Date the Change in Control Agreement,
dated as of May 17, 1999, between Employer and Executive (the “Prior Change in Control
Agreements”).

     NOW THEREFORE, IN CONSIDERATION OF EXECUTIVE CONTINUING AS THE EMPLOYEE OF EMPLOYER AND OF THE
MUTUAL PROMISES HEREIN CONTAINED, EXECUTIVE AND EMPLOYER, INTENDING TO BE LEGALLY BOUND, HEREBY
AGREE AS FOLLOWS;

ARTICLE I

DEFINITIONS

	1.	 	A “Change in Control” for the purpose of this Agreement means the occurrence of any of the
following:

	 	(a)	 	the Board of Directors or shareholders of the Employer approve a consolidation
or merger in which the Employer is not the surviving corporation, the sale of
substantially all of the assets of the Employer, or the liquidation or dissolution of
the Employer;

	 	(b)	 	any person or other entity (other than the Employer or a Subsidiary or any
Employer employee benefit plan (including any trustee of any such plan acting in its
capacity as trustee)) purchases any Shares (or securities convertible into Shares)
pursuant to a tender

 

	 	 	 	or exchange offer without the prior consent of the Board of Directors, or becomes
the beneficial owner of securities of the Employer representing 20% or more of the
voting power of the Employer’s outstanding securities;

	 	(c)	 	during any two-year period, individuals who at the beginning of such period
constitute the entire Board of Directors cease to constitute a majority of the Board of
Directors, unless the election or the nomination for election of each new director is
approved by at least two-thirds of the directors then still in office who were
directors at the beginning of that period; or

	 	(d)	 	A record date is established for determining shareholders of Employer entitled
to vote upon (i) a merger or consolidation of Employer with another real estate
investment trust, partnership, corporation or other entity in which Employer is not the
surviving or continuing entity or in which all or a substantial part of the outstanding
            shares are to be converted into or exchanged for cash, securities or other property,
(ii) a sale or other disposition of all or substantially all of the assets of Employer
or (iii) the dissolution of Employer.

	2.	 	“Code” means the Internal Revenue Code of 1986, as amended.

	3.	 	“Shares” means the Common Shares, without par value, of the Employer.

	4.	 	“Subsidiary” means any corporation (other than the Employer) in an unbroken chain of
corporations beginning with the Employer if each of the corporations (other than the last
corporation in the unbroken chain) owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in that chain.

ARTICLE II

SEVERANCE PAYMENT

	1.	 	Upon the occurrence of a Change in Control on or after the Effective Date, Employer shall pay
to Executive a lump sum severance benefit which will be in addition to any other compensation
or remuneration to which Executive is, or becomes, entitled to receive from Employer. This
lump sum severance payment will be paid by Employer to Executive within five business days
after the occurrence of a Change in Control in immediately available funds in an amount equal
to the total amount of base salary payable during the term remaining after the date of the
Change in Control, if any, of the Amended and Restated Employment Agreement of even date
herewith between Employer and Employee. In addition, Employer shall, at its expense, provide
Executive, and his family, with life, health, hospitalization, vision, dental, disability and
accidental death and dismemberment insurance in an amount not less than that provided at the
time of the Change in Control, until the earlier of (i) in the event that Executive shall
become employed by another employer after a Change in Control, the date on which Executive
shall be eligible to receive benefits from such employer which are substantially equivalent to
or greater than the benefits Executive and his family received from Employer or (ii) the
second anniversary of the date of the Change in Control. Notwithstanding the foregoing, in
the event that it is determined that any payment to be made hereunder is considered
“nonqualified deferred compensation” subject to Section 409A of the American Jobs Creation Act
of 2004, payment under this Section will be delayed for six months following termination of
employment.

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	2.	 	If all or any portion of the amounts payable to Executive under this Agreement or the
Executive’s Amended and Restated Employment Agreement (including, without limitation, the
issuance of common shares of Employer; the granting or vesting of restricted shares; and the
granting, vesting, exercise or termination of options, but excluding any units or awards
granted or vested pursuant to any Performance Unit Agreement between the Executive and the
Company or any Outperformance Long-Term Incentive Plan Agreement between the Executive and the
Company) constitutes “excess parachute payments” within the meaning of Section 280G of the
Code that are subject to the excise tax imposed by Section 4999 of the Code (or any similar
tax or assessment), the amounts payable to Executive shall be increased to the extent
necessary to place Executive in the same after-tax position as he would have been in had no
such tax been imposed on any such amount paid or payable to Executive under this Agreement,
the Executive’s Amended and Restated Employment Agreement or any other amount that Executive
may receive pursuant thereto (other than pursuant to a Performance Unit Agreement or an
Outperformance Long-Term Incentive Plan Agreement). The determination of the amount of any
such tax and the incremental payment required hereby in connection therewith shall be made by
the accounting firm employed by Executive within thirty (30) calendar days after the severance
payment is made pursuant to Paragraph 1 of this Article II and said incremental payment shall
be made within five (5) calendar days after determination has been made. If, after the date
upon which the payment required by this Article II, Paragraph 3 has been made, it is
determined (pursuant to final regulations or published rulings of the Internal Revenue
Service, final judgment of a court of competent jurisdiction, Internal Revenue Service audit
assessment or otherwise) that the amount of excise or other similar taxes payable by Executive
is greater than the amount initially so determined, then Employer shall pay Executive an
amount equal to the sum of: (i) such additional excise or other taxes, plus (ii) any
interest, fines and penalties resulting from such underpayment, plus (iii) an amount
necessary to reimburse Executive for any income, excise or other tax assessment payable by
Executive with respect to the receipt of the amounts specified in (i) and (ii) above, and the
reimbursement provided by this clause (iii), in the manner described above in this Article II,
Paragraph 3. Payment thereof shall be made within five (5) calendar days after the date upon
which such subsequent determination is made.

ARTICLE III

SETOFF

     No amounts otherwise due or payable under this Agreement will be subject to setoff or
counterclaim by either party hereto.

ARTICLE IV

ATTORNEY’S FEES

     All attorney’s fees and related expenses incurred by Executive in connection with or relating
to the enforcement by him of his rights under this Agreement will be paid for by Employer.

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ARTICLE V

SUCCESSORS AND PARTIES IN INTEREST

     This Agreement will be binding upon and will inure to the benefit of Employer and its
successors and assigns, including, without limitation, any corporation which acquires, directly or
indirectly, by purchase, merger, consolidation or otherwise, all or substantially all of the
business or assets of Employer. Without limitation of the foregoing, Employer will require any
such successor, by agreement in form and substance satisfactory to Executive, expressly to assume
and agree to perform this Agreement in the same manner and to the same extent that it is required
to be performed by Employer. This Agreement will be binding upon and will inure to the benefit of
Executive, his heirs at law and his personal representatives.

ARTICLE VI

ATTACHMENT

     Neither this Agreement nor any benefits payable hereunder will be subject to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge or to execution, attachment,
levy or similar process at law, whether voluntary or involuntary.

ARTICLE VII

EMPLOYMENT CONTRACT

     This Agreement will not in any way constitute an employment agreement between Employer and
Executive and it will not oblige Executive to continue in the employ of Employer, nor will it
oblige Employer to continue to employ Executive, but it will merely require Employer to pay
severance benefits to Executive under certain circumstances, as aforesaid. In addition, this
Agreement will be considered terminated, and of no further force and effect, if Executive ceases to
be an employee of Employer prior to a Change in Control of Employer.

ARTICLE VIII

RIGHTS UNDER OTHER PLANS AND AGREEMENTS

     Except as provided in the Amended and Restated Employment Agreement between the Employer and
Executive, the severance benefits herein provided will be in addition to, and are not intended to
reduce, restrict or eliminate any benefit to which Executive may otherwise be entitled by virtue of
his termination of employment or otherwise.

ARTICLE IX

NOTICES

     All notices and other communications required to be given hereunder shall be in writing and
will be deemed to have been delivered or made when mailed, by certified mail, return receipt
requested, if to Executive, to the last address which Executive shall provide to Employer, in
writing, for this purpose, but

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if Executive has not then provided such an address, then to the last address of Executive then on
file with Employer; and if to Employer, then to the last address which Employer shall provide to
Executive, in writing, for this purpose, but if Employer has not then provided Executive with such
an address, then to:

Corporate Secretary

Developers Diversified Realty Corporation

3300 Enterprise Parkway

Beachwood, Ohio 44122

ARTICLE X

GOVERNING LAW AND JURISDICTION

     This Agreement will be governed by, and construed in accordance with, the laws of the State of
Ohio, except for the laws governing conflict of laws. If either party institutes a suit or other
legal proceedings, whether in law or equity, Executive and Employer hereby irrevocably consent to
the jurisdiction of the Common Pleas Court of the State of Ohio (Cuyahoga County) or the United
States District Court for the Northern District of Ohio.

ARTICLE XI

ENTIRE AGREEMENT

     This Agreement constitutes the entire understanding between Employer and Executive concerning
the subject matter hereof and supersedes as of the Effective Date all prior written or oral
agreements or understandings between the parties hereto, including, without limitation, the Prior
Change in Control Agreement. No term or provision of this Agreement may be changed, waived,
amended or terminated except by a written instrument.

     IN WITNESS WHEREOF, and as conclusive evidence of the adoption of this Agreement, the parties
have hereunto set their hands as of the date and year first above written.

	 	 	 	 	 	 
	 	 	DEVELOPERS DIVERSIFIED REALTY CORPORATION
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By
	 	/s/ Scott A. Wolstein
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	/s/ David M. Jacobstein
	 	 	 
	 	 	DAVID M. JACOBSTEIN

Page 5EX-10.1

 

Exhibit 10.1

EMPLOYEE DEATH BENEFIT AGREEMENT

     THIS AGREEMENT, made this 5th day of Feburary, 2007, by and between Michael C.
Arnold (“Employee”), and THE TIMKEN COMPANY (“Timken”), an Ohio corporation having its principal
offices at Canton, Ohio.

     WHEREAS, Employee has been employed by Timken since May 29, 1979 and is currently serving as
President – Industrial Group in a capable and efficient manner; and

     WHEREAS, Timken desires to retain the services of Employee and to provide additional
compensation to Employee for his services; and

     WHEREAS, Employee is willing to continue in the employ of Timken until his retirement,
provided that Timken will pay a death benefit to Employee’s Beneficiary upon Employee’s death.

     NOW, THEREFORE, the parties covenant and agree as follows:

	 	1.	 	If Employee dies prior to obtaining age 70, Timken shall provide to Employee’s
Beneficiary an amount equal to twice Employee’s annual salary in effect as of December
31, 2003, said amount increased to offset the United States Federal Income Taxes and
State Taxes then in effect, provided however, Timken’s obligation under this Paragraph
1 shall terminate upon the Employee’s voluntary or involuntary termination of active
employment as an officer of Timken other than if the termination is as a result of (a)
the Employee’s retirement under The 1984 Retirement Plan for Salaried Employees of The
Timken Company, or any successor plan, or (b) an involuntary termination of employment
subsequent to a Change of Control, as defined in the Severance Agreement entered into
by the Employee and Timken, or any successor thereto.

 

 

	 	2.	 	Any payment under Paragraph 1 shall be in a lump sum and shall be paid to Employee’s
Beneficiary as soon as administratively feasible following receipt of the information required by
Paragraph 8 hereof.
	 
	 	3.	 	Employee hereby names                                                              as the beneficiary
(“Employee’s Beneficiary”) hereunder.
	 
	 	4.	 	This Agreement shall be binding upon and shall inure to the benefit of Timken
and Employee and their respective successors and assigns; provided, however, that,
except as set forth herein, no rights to any benefit under this Agreement shall,
without the written consent of Timken, be transferable or assignable by Employee or any
other person, or be subject to alienation, encumbrance, garnishment, attachment,
execution or levy of any kind, voluntary or involuntary. Any such attempted assignment
or transfer shall terminate this Agreement and Timken shall have no further liability
hereunder.
	 
	 	5.	 	Timken is hereby designated as the Named Fiduciary of this Agreement, in accordance with
the Employee Retirement Income Security Act of 1974 (ERISA).
The Named Fiduciary shall have the authority to control and manage the operation and
administration of this Agreement and is hereby designated as the Agreement Administrator.
	 
	 	6.	 	The obligations of Timken hereunder constitute an unsecured promise of Timken
to make payment of the amounts provided for in this Agreement. No property of Timken
is or shall be, by reason of this Agreement, held in trust for Employee, Employee’s
Beneficiary or any other person, and neither Employee, Employee’s Beneficiary nor any
other person shall have, by reason of this Agreement, any rights, title or interest of
any kind in or to any property of Timken.

2

 

	 	7.	 	In the event that, in its discretion, Timken purchases an insurance policy or policies
insuring the life of Employee to allow Timken to recover in whole or in
part, the cost of providing the benefits under this Agreement, neither Employee nor
Employee’s Beneficiary shall have any rights whatsoever therein; Timken shall be the
sole owner and beneficiary of such insurance policy or policies and shall possess and
may exercise all incidents of ownership therein.
	 
	 	8.	 	It shall be the duty of Employee’s Beneficiary to submit a claim for benefits under this
Agreement to Timken. The claim must be in writing and must include a copy of the death
certificate.
	 
	 	9.	 	All questions of interpretation, construction or application arising under this
Agreement shall be decided by the Compensation Committee of the Board of Directors of
Timken and its decision shall be final and conclusive upon all parties. Timken shall
make all determinations as to rights to benefits under this Agreement. Any decision by
Timken denying a claim for benefits under this Agreement shall be stated in writing and
delivered or mailed to Employee or Employee’s Beneficiary. Such decision shall (i) be
made and issued in accordance with the claims regulations issued by the Department of
Labor, (ii) set forth the specific reasons for the denial of the claim, and (iii) state
that the decision may be appealed by Employee or Employee’s Beneficiary.
	 
	 	10.	 	Nothing contained in this Agreement shall be construed to be a contract of employment nor
as conferring upon Employee the right to continue in the employ of Timken in any capacity. It is
expressly understood by the parties hereto that this Agreement relates exclusively to death
benefits and is not intended to be an employment contract.

3

 

	 	11.	 	This Agreement may not be amended, altered or modified, except by a written
instrument signed by the parties hereto. This Agreement shall supersede the provisions
of the prior Employee Death Benefit Agreement dated as of April 21, 2004 and the
Employee and Employee’s Beneficiary shall be entitled to benefits solely under this
Agreement.
	 
	 	12.	 	The failure at any time to require performance of any provision expressed herein shall in
no way affect the right thereafter to enforce such provision; nor shall the waiver of any breach of
any provision expressed herein be taken or held to be a
waiver of any succeeding breach of any such provision or as a waiver of a provision itself.
	 
	 	 	 	In the event that any provision or term of this Agreement is finally determined by
any judicial, quasi-judicial or administrative body to be void or not enforceable for
any reason, it is the agreed upon intent of the parties hereto that all other
provisions or terms of the Agreement shall remain in full force and effect and that
the Agreement shall be enforceable as if such void or unenforceable provision or term
had never been included herein.
	 
	 	13.	 	Every designation, election, revocation or notice authorized or required
hereunder shall be deemed delivered to Timken: (a) on the date it is personally
delivered to Timken offices at 1835 Dueber Avenue, S.W., Canton, OH 44706-0927 or (b)
three business days after it is sent by registered or certified mail, postage prepaid,
addressed to Timken at the offices indicated above. Every designation, election,
revocation or notice authorized or required hereunder which is to be delivered to
Employee or Employee’s Beneficiary shall be deemed delivered to the Employee or
Employee’s Beneficiary: (a) on the date it is personally delivered to such individual
(either physically or through interactive electronic communication), or (b) three
business days after it is sent by registered or certified mail, postage prepaid,
addressed to such individual at the last address shown for him on Timken records. Any
notice required hereunder may be waived by the person entitled thereto.

4

 

	 	14.	 	In the event Employee’s Beneficiary is declared incompetent and a guardian,
conservator or other person is appointed and legally charged with the care of
Employee’s Beneficiary or the estate of Employee’s Beneficiary, the payments under this
Agreement to which Employee’s Beneficiary is entitled shall be paid to such guardian,
conservator or other person legally charged with the care of Employee’s Beneficiary or
the estate of Employee’s Beneficiary.
	 
	 	15.	 	This Agreement shall be subject to and construed under the laws of the State of Ohio.

     IN WITNESS WHEREOF, the parties hereto have executed this Employee Death Benefit Agreement on
this ___ day of                                         , 2007.

	 	 	 	 	 	 	 
	 	 	THE TIMKEN COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	Employee

	 	 	 	William R. Burkhart	 	 
	 
	 	 	 	 	 	 
	 	 	Its: Senior Vice President & General Counsel	 	 

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