AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Employment
Agreement”) is entered into as of the 29
th day of December 2008, between Developers
Diversified Realty Corporation, an Ohio corporation (the
“Company”), and Robin R. Walker-Gibbons (the
“Executive”).
WHEREAS,
the Company desires to employ the Executive, and the Executive
desires to be employed by the Company, on the terms and subject to
the conditions set forth herein; and
WHEREAS,
the Company and the Executive desire for this Employment Agreement
to amend and supersede any prior employment agreements between the
Company and the Executive.
NOW,
THEREFORE, in consideration of the mutual promises herein
contained, the parties agree as follows:
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(a)
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The
Company hereby employs the Executive as its Executive Vice
President of Leasing, and the Executive hereby accepts such
employment, on the terms and subject to the conditions hereinafter
set forth.
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(b)
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During the term of this Employment
Agreement, the Executive shall be and have the title of Executive
Vice President of Leasing and shall devote all of her business time
and all reasonable efforts to her employment and perform diligently
such duties as are customarily performed by Executive Vice
Presidents of Leasing of companies similar in size to, and in a
similar business as, the Company, together with such other duties
as may be reasonably requested from time to time by the Senior
Executive Vice President, President or Chief Executive Officer of
the Company or the Board of Directors of the Company (the
“Board”), which duties shall be consistent with her
positions previously set forth and as provided in
Paragraph 2.
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(a)
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The
period of employment of the Executive by the Company shall, subject
to earlier termination as provided in this Employment Agreement,
continue until December 31, 2009, with automatic one year renewals
thereafter. Notwithstanding the foregoing, this Employment
Agreement may be terminated by the Company with “cause”
(as hereinafter defined) at any time and without cause upon not
less than ninety (90) days prior written notice to the
Executive.
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(b)
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During the term of this Employment
Agreement, the Executive shall be entitled to serve as the
Executive Vice President of Leasing of the Company. For service as
an officer and employee of the Company, the Executive shall be
entitled to the full protection of the applicable indemnification
provisions of the articles of incorporation and code of regulations
of the Company, as the same may be amended from time to time, and
any
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Page 1
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Indemnification
Agreement between the Company and the Executive that was in effect
as of December 28, 2008 and as the same may be amended from
time to time thereafter (the “Indemnification
Agreement”).
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(i)
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the
Company materially changes the Executive’s duties and
responsibilities as set forth in Paragraphs 1(b) and 2(b) without
her consent;
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(ii)
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the
Executive’s place of employment or the principal executive
offices of the Company are located more than fifty (50) miles
from the geographical center of Cleveland, Ohio; or
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(iii)
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there occurs a material breach by
the Company of any of its obligations under this Employment
Agreement, which breach has not been cured in all material respects
within thirty (30) days after the Executive gives notice
thereof to the Company;
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then in any such event the Executive
shall have the right to terminate her employment with the Company,
but such termination shall not be considered a voluntary
resignation or termination of such employment or of this Employment
Agreement by the Executive but rather a discharge of the Executive
by the Company without “cause” (as defined in
Paragraph 5(a)(ii)).
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(d)
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The
Executive shall be deemed not to have consented to any written
proposal calling for a material change in her duties and
responsibilities unless the Executive shall give written notice of
her consent thereto to the Board within fifteen (15) days
after receipt of such written proposal. If the Executive shall not
have given such consent, the Company shall have the opportunity to
withdraw such proposed material change by written notice to the
Executive given within ten (10) days after the end of said
fifteen (15) day period.
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(e)
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Notwithstanding anything in this
Employment Agreement to the contrary, if there shall occur a
“Change in Control” and a “Triggering
Event” (as those terms are defined in the Amended and
Restated Change in Control Agreement, dated December 29, 2008,
between the Company and the Executive (the “Change in Control
Agreement”)) under circumstances entitling the Executive to
payments and benefits as specified in Article II,
Paragraph 1 of the Change in Control Agreement, payments to
the Executive will be governed by the Change in Control Agreement
and the Executive shall not be entitled to any additional benefits
under this Employment Agreement except as to that portion of any
unpaid salary and other benefits accrued and earned by the
Executive hereunder up to and including the Termination Date (as
defined in Paragraph 5(f)).
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During the term of this Employment
Agreement, the Company shall pay or provide, as the case may be, to
the Executive the compensation and other benefits and rights set
forth in this Paragraph 3.
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(a)
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The
Company shall pay to the Executive a base salary payable in
accordance with the Company’s usual pay practices (and in any
event no less frequently than monthly) of not less than Two Hundred
Ninety Thousand Dollars ($290,000) per annum, subject to such
increases as the Board may approve.
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Page 2
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(b)
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In
addition to an annual base salary, if the Executive achieves the
factors and criteria for bonus payments hereinafter described for
any fiscal year of the Company throughout which the Executive is
employed by the Company, then the Company shall pay to the
Executive bonus compensation for such fiscal year, not later than
75 days following the end of the fiscal year, determined and
calculated in accordance with the percentages set forth on
Exhibit A attached hereto. The Company’s award of bonus
compensation to the Executive shall be determined by the factors
and criteria, including the financial performance of the Company
and the performance by the Executive of her duties hereunder, that
may be established from time to time for the calculation of bonus
awards by the Executive Compensation Committee (the
“Committee”) of the Board. (Note that in certain
circumstances the Executive may be entitled to a pro rata bonus for
a partial fiscal year of the Company as provided in
Paragraph 4(a) or 5(d).)
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(c)
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The
Company shall provide to the Executive such life, disability,
medical, hospitalization and dental insurance for the Executive,
her spouse and eligible family members as may be determined by the
Board to be consistent with industry standards.
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(d)
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The
Executive shall participate in all retirement and other benefit
plans of the Company generally available from time to time to
employees of the Company and for which the Executive qualifies
under the terms thereof (and nothing in this Employment Agreement
shall or shall be deemed to in any way affect the Executive’s
rights and benefits thereunder except as expressly provided
herein).
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(e)
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The
Executive shall be entitled to such periods of vacation and sick
leave allowance each year as are determined by the Chief Executive
Officer or the President of the Company in his reasonable and good
faith discretion, which in any event shall be not less than four
weeks per year or as otherwise provided under the Company’s
vacation and sick leave policy for executive officers.
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(f)
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The
Executive shall be entitled to participate in any equity or other
employee benefit plan that is generally available to senior
executive officers, as distinguished from general management, of
the Company. The Executive’s participation in and benefits
under any such plan shall be on the terms and subject to the
conditions specified in the governing documents of the particular
plan.
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(g)
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The
Company shall reimburse the Executive or provide the Executive with
an expense allowance during the term of this Employment Agreement
for travel, entertainment and other expenses reasonably and
necessarily incurred by the Executive in connection with the
Company’s business. The Executive shall furnish such
documentation with respect to reimbursement to be paid hereunder as
the Company shall reasonably request.
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4.
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Payment in the Event of Death or
Disability.
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(a)
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Except as otherwise provided in
Paragraph 4(a)(i), in the event of the Executive’s death
or if the Company terminates the Executive’s employment by
reason of the Executive becoming “disabled” (as
hereinafter defined) during the term of this Employment Agreement,
the Company shall pay to the Executive (or the successors and
assigns of the Executive in the event of her death) an amount equal
to the sum of (x) the Executive’s then effective per annum
rate of salary, as determined under Paragraph 3(a), plus (y) a
bonus amount prorated up to and including the Termination Date and
determined as specified in Paragraph 4(a)(ii) (a “Pro
Rata Bonus Amount”), and shall continue the
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Page 3
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benefits
described in Paragraph 3(c) for the Executive (except in the case
of death) and the Executive’s family for a period of one
(1) year.
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(i)
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The
Company will not be obligated to pay or provide any of the amounts
or benefits specified in Paragraph 4(a) unless either (A) the
Company is deemed to have waived the obligation to provide a
Release as provided in Paragraph 6(b) or (B) the Executive or
the Executive’s personal representative has timely executed a
Release as contemplated by Paragraph 6(c) and has not revoked such
Release during any applicable revocation period.
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(ii)
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The
Pro Rata Bonus Amount shall be determined by first calculating a
pro forma full year annual bonus amount for the Executive for the
entire fiscal year in which the termination occurs in the manner
specified in the last sentence of this Paragraph 4(a)(ii) and
then multiplying the amount of the pro forma full year annual bonus
amount (so calculated) by a fraction, the numerator of which is the
number of days in that portion of the fiscal year ending on the
Termination Date and the denominator of which is the number of days
in the entire fiscal year. The pro forma full year annual bonus
amount shall be calculated on the same date and in the same manner
as if the Executive’s employment had continued throughout the
end of the fiscal year, using actual results for the entire fiscal
year, and, insofar as the Executive’s individual performance
may be a factor, assuming that the Executive had performed
throughout the fiscal year at the same level at which the Executive
actually performed during the fiscal year up to the Termination
Date.
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(b)
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The
Company will pay the amount equal to one year of salary pursuant to
Paragraph 4(a)(x) (i) in the event of the
Executive’s death, as soon as practicable following the
Executive’s death, but in no event later than March 15
of the year after the year in which the Executive’s death
occurs (provided that neither the Executive nor the
Executive’s estate may designate the taxable year of
payment), and (ii) in the event of the Company’s
termination of the Executive’s employment by reason of the
Executive’s becoming disabled, except as otherwise provided
in Section B.2 of the Tax Provision Exhibit attached to this
Employment Agreement as Exhibit B, during the Seventh Month
after the Termination Date (as defined in Section B.1 of the
Tax Provision Exhibit). The Company will pay the Pro Rata Bonus
Amount pursuant to Paragraph 4(a)(y) on the date on which the
Company generally pays bonuses for the fiscal year during which the
termination of employment occurred (but not later than
March 15 of the immediately following year). To assure
compliance with Section 409A of the Internal Revenue Code, the
timing of the provision of the benefits described in Paragraph 3(c)
will be subject to Sections B.1 and B.3 of the Tax Provision
Exhibit if and to the extent either of those sections is applicable
according to its terms.
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(c)
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For
purposes of this Employment Agreement, the Executive shall become
“disabled” only in the event of a permanent disability.
Executive’s “disability” shall be deemed to have
occurred after one hundred twenty (120) days in the aggregate
during any consecutive twelve (12) month period, or after
ninety (90) consecutive days, during which one hundred twenty
(120) or ninety (90) days, as the case may be, the
Executive, by reason of her physical or mental disability or
illness, shall have been unable to discharge her duties under this
Employment Agreement. The date of disability shall be such one
hundred twentieth (120th ) or ninetieth (90th ) day, as the case
may be. In the event either the Company or the Executive, after
receipt of notice of the Executive’s disability
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Page 4
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from the other,
dispute that the Executive’s permanent disability shall have
occurred, the Executive shall promptly submit to a physical
examination by the chief of medicine of any major accredited
hospital in the Cleveland, Ohio, area and, unless such physician
shall issue a written statement to the effect that in the
physician’s opinion, based on the physician’s
diagnosis, the Executive is capable of resuming her employment and
devoting full time and energy to discharging her duties within
thirty (30) days after the date of such statement, such
permanent disability shall be deemed to have occurred.
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(a)
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The
employment of the Executive under this Employment Agreement, and
the terms hereof, may be terminated by the Company:
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(i)
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on
the death of the Executive or if the Executive becomes disabled (as
previously defined);
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(ii)
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for
cause at any time by action of the Board. For purposes hereof, the
term “cause” shall mean:
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(A)
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The
Executive’s fraud, commission of a felony or of an act or
series of acts which result in material injury to the business
reputation of the Company, commission of an act or series of
repeated acts of dishonesty which are materially inimical to the
best interests of the Company, or the Executive’s willful and
repeated failure to perform her duties under this Employment
Agreement, which failure has not been cured within fifteen
(15) days after the Company gives notice thereof to the
Executive; or
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(B)
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The
Executive’s material breach of any provision of this
Employment Agreement, which breach has not been cured in all
substantial respects within ten (10) days after the Company
gives notice thereof to the Executive; or
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(iii)
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without cause pursuant to written
notice provided to the Executive not less than ninety
(90) days in advance of the Termination Date.
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The
exercise by the Company of its rights of termination under this
Paragraph 5 shall be the Company’s sole remedy if such
right to terminate arises. Upon any termination of this Employment
Agreement, the Executive shall be deemed to have resigned from all
offices and directorships held by the Executive in the
Company.
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(b)
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In
the event of a termination claim by the Company to be for
“cause” pursuant to Paragraph 5(a)(ii), the
Executive shall have the right to have the justification for said
termination determined by arbitration in Cleveland, Ohio. In order
to exercise such right, the Executive shall serve on the Company
within thirty (30) days after termination a written request
for arbitration. The Company immediately shall request the
appointment of an arbitrator by the American Arbitration
Association and thereafter the question of “cause”
shall be determined under the rules of the American Arbitration
Association, and the decision of the arbitrator shall be final and
binding upon both parties. The parties shall use all reasonable
efforts to facilitate and expedite the arbitration and shall act to
cause the arbitration to be completed as promptly as possible.
During the pendency of the arbitration, the Executive shall
continue to receive all compensation and benefits to which the
Executive is entitled hereunder, and if at any time during the
pendency of such
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Page 5
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arbitration the
Company fails to pay and provide all compensation and benefits to
the Executive in a timely manner the Company shall be deemed to
have automatically waived whatever rights it then may have had to
terminate the Executive’s employment for cause. Expenses of
the arbitration shall be borne equally by the parties except as
otherwise determined by the arbitrator.
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(c)
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In
the event of termination for any of the reasons set forth in
subparagraph (a) of this Paragraph 5, except as otherwise
provided in Paragraphs 3(d), 4(a) and 5(d), the Executive shall be
entitled to no further compensation or other benefits under this
Employment Agreement, except as to that portion of any unpaid
salary and other benefits accrued and earned by the Executive
hereunder up to and including the Termination Date.
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(d)
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Except as provided in
Paragraph 5(d)(i), in the event of the termination by the
Company of the Executive without “cause” (other than as
described in Paragraph 2(e)), or in the event of a termination
by the Executive for reasons set forth in Paragraph 2(c), the
Company shall pay to the Executive an amount equal to the sum of
(x) the Executive’s then effective per annum rate of
salary, as determined under Paragraph 3(a), plus, (y) a Pro
Rata Bonus Amount (determined in the same manner as provided in
Paragraph 4(a) in the event of termination due to death or
disability), and shall continue the benefits described in Paragraph
3(c) for a period of one (1) year.
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(i)
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The
Company will not be obligated to pay or provide any of the amounts
or benefits specified in Paragraph 5(d) unless either (A) the
Company is deemed to have waived the obligation to provide a
Release as provided in Paragraph 6(b) or (B) the Executive has
timely executed a Release as contemplated by Paragraph 6(c)
and has not revoked such Release during any applicable revocation
period.
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(e)
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Except as otherwise provided in
Section B.2 of the Tax Provision Exhibit, (i) the Company will
pay the amount equal to one year of salary pursuant to Paragraph
5(d)(x) during the Seventh Month after the Termination Date. The
Company will pay the Pro Rata Bonus Amount pursuant to
Paragraph 5(d)(y) on the date on which the Company generally
pays bonuses for the fiscal year during which the termination of
employment occurred (but not later than March 15 of the
immediately following year). To assure compliance with
Section&nbs
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