AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT is entered into
and made effective as of January 1, 1996 by and among Tanger Properties Limited
Partnership, a North Carolina limited partnership (the "Partnership"), Tanger
Factory Outlet Centers, Inc. (the "Company"), a North Carolina corporation and
Xxxxxx X. Xxxxxx (the "Executive").
RECITALS:
A. The Executive is the Chief Operating Officer of the Partnership and
an officer and director of the Company under the terms of an Amended and
Restated Employment Agreement dated as of January 1, 1995 between the Executive,
the Partnership and the Company (the "Original Employment Contract"). The term
of the Original Employment Contract ends on June 30, 1996.
B. The Company, the Partnership and the Executive intend modify and
amend the Original Employment Contract and to extend its term as provided
herein.
NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements set forth below the parties hereto agree as follows:
1. Certain Definitions.
(a) "Annual Base Salary" is defined in Section 7(a).
(b) "Annual Bonus" is defined in Section 7(d).
(c) "Benefits" is defined in Section 7(b)(iii).
(d) "Cause": For purposes of this Agreement, the Partnership
or the Company shall have "Cause" to terminate the Executive's employment
hereunder upon (i) the Executive causing material harm to the Company through a
material act of dishonesty in the performance of his duties hereunder, (ii) his
conviction of a felony involving moral turpitude, fraud or embezzlement, or
(iii) his willful failure to perform his material duties under this Agreement
(other than a failure due to disability) after written notice specifying the
failure and a reasonable opportunity to cure (it being understood that if his
failure to perform is not of a type requiring a single action to cure fully,
that he may commence the cure promptly after such written notice and thereafter
diligently prosecute such cure to completion).
(e) "Change of Control" shall mean (A) the sale, lease,
exchange or other transfer (other than pursuant to internal reorganization) by
the Company or the Partnership of more than 50% of its assets to a single
purchaser or to a group of associated purchasers; (B) a merger, consolidation or
similar transaction in which the Company or the Partnership does not
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survive as an independent, publicly owned corporation or the Company ceases to
be the sole general partner of the Partnership; or (C) the acquisition of
securities of the Company or the Partnership in one or a related series of
transactions (other than pursuant to an internal reorganization) by a single
purchaser or a group of associated purchasers (other than the Executive or any
of his lineal descendants, lineal ancestors or siblings) which results in their
ownership of thirty-five (35%) percent or more of the number of Common Shares of
the Company (treating any Partnership Units or Preferred Shares acquired by such
purchaser or purchasers as if they had been converted to Common Shares) that
would be outstanding if all of the Partnership Units and Preferred Shares were
converted into Common Shares; or (D) a majority of the members of the Company's
Board of Directors are replaced during any twelve month period by directors
whose appointment or election is not endorsed by a majority of the members of
the Board prior to the date of the appointment or election.
(f) "Disability" shall mean the absence of the Executive from
the Executive's duties to the Partnership and/or the Company on a full-time
basis for a total of 16 consecutive weeks during any 12 month period as a result
of incapacity due to mental or physical illness which is determined to be total
and permanent by a physician selected by the Partnership or the Company and
acceptable to the Executive or the Executive's legal representative (such
agreement as to acceptability not to be withheld unreasonably).
(g) A "Contract Year" shall be a calendar year.
(h) "Funds From Operations" or "FFO", with respect to a
Contract Year or a calendar quarter, shall be equal to the Company's
consolidated Funds From Operations before the minority interest of the limited
partners of the Partnership as reported in the Company's relevant filings with
the Securities and Exchange Commission, or if not so reported, as determined by
the Company's Board of Directors in good faith, after deduction of any Annual
Bonus paid to the Executive or Xxxxxxx X. Xxxxxx under similar provisions of his
employment agreement for such period.
(i) "Funds From Operations Per Share" or "FFO Per Share" for
any Contract Year or for any calendar quarter shall equal the amount of the
Funds From Operations for such period, divided by the Weighted Average Number of
Shares Outstanding for such period.
(j) "Good Reason": The Executive shall have Good Reason to
terminate his employment upon the occurrence of any of the following events:
(1) any material adverse change in his job titles, duties,
responsibilities, perquisites granted hereunder, or authority without
his consent;
(2) a material breach of this Employment Agreement by the
Partnership or Company, including without limitation, the failure to
pay compensation or benefits when due hereunder if such failure is not
cured within 30 days after delivery to the Company and the Partnership
of the Executive's written demand for payment thereof;
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(3) if the Executive elects to terminate his employment by
written notice to the Company and the Partnership within the 180 day
period following a Change of Control; or
(4) if the Executive is removed, or is not re-elected as a
Director of the Company.
(k) Target FFO Per Share.
(1) The "Target FFO Per Share" or "Target" for any
Contract Year beginning prior to December 31, 1996 shall be the average
FFO Per Share for the calendar quarters beginning with the calendar
quarter beginning on July 1, 1993 and ending with the last calendar
quarter in the immediately preceding Contract Year multiplied by 4;
provided however the Target FFO Per Share shall not be less than
$1.5520.
(2) The "Target FFO Per Share" or "Target" for any
Contract Year beginning after December 31, 1996 shall be the average
FFO Per Share for the previous three Contract Years; provided however
the Target FFO Per Share shall not be less than $1.5520.
(l) "Contract Term" is defined in Section 2(b).
(m) The "Weighted Average Number of Shares Outstanding" for a
Contract Year or for a calendar quarter shall be the weighted average
number of the Company's total shares of common stock outstanding during
such period as determined by the Company's outside auditors pursuant to
generally accepted accounting principles; provided that for the
purposes of this calculation, the conversion features of the Company's
preferred stock and the Partnership's units shall both be deemed
exercised.
2. Employment.
(a) The Partnership and the Company shall continue to employ
the Executive and the Executive shall remain in the employ of the Partnership
and the Company during the Contract Term (as defined in this Section 2) in the
positions set forth in Section 3 and upon the other terms and conditions herein
provided, unless the Executive's employment is terminated earlier as provided in
Section 8 hereof.
(b) The initial Contract Term of this Amended and Restated
Employment Agreement shall begin as of January 1, 1996 (the "Commencement Date")
and shall end on December 31, 1998 (the "Initial Contract Term"). On January 1,
1997 and on the first day of January of each calendar year thereafter (an
"Extension Date"), the Contract Term shall be automatically extended by one year
unless (i) the Executive's employment has been earlier
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terminated as provided in Section 8 or (ii) either the Partnership or the
Company gives written notice to the Executive prior to the Extension Date that
the Contract Term shall not be automatically extended. For purposes of
illustration, if the Executive's employment has not been terminated as provided
in Section 8 and if neither the Company nor the Partnership has given written
notice that the Contract Term will not be extended, on January 1, 1997, the
Contract Term will be extended to and including December 31, 1999 and on January
1, 1998, the Contract Term shall be automatically extended until December 31,
2000.
If the Contract Term is extended as provided herein, the Executive's employment
may be terminated (other than upon expiration) only as provided in Section 8.
References herein to the "Contract Term" shall refer to the Initial Contract
Term as extended pursuant to this Section 2.
3. Position and Duties. During the Executive's employment hereunder, he shall
serve as:
(a) an executive employee of the Partnership and shall have
such duties, functions, responsibilities and authority as are consistent with
the Executive's position,
(b) the President and Chief Operating Officer of the Company
and shall have such duties, functions, responsibilities and authority as are
consistent with the Executive's position as an executive officer with respect to
the general management, business and affairs of the Company (and the
Partnership, through the Company's capacity as general partner of the
Partnership), and
(c) if elected or appointed thereto, as a Director of the
Company.
The Executive's position, duties and responsibilities may not be
changed and the Executive's Annual Base Salary may not be reduced during the his
employment hereunder.
4. Competition.
(a) Subject to the limitations and conditions in Section 4(e)
hereof, the Executive shall be prohibited from engaging in Competition (as
defined in subsection 4(b) below) with the Partnership or the Company during the
following described periods: (i) during the period beginning on the date hereof
and extending through the date on which the Executive's employment hereunder is
terminated; (ii) if the Executive's employment is terminated by the Company for
Cause or by the Executive without Good Reason, from the date of such termination
through the date of the first anniversary of such termination date and (iii) if
the Executive receives the Severance Payment described in Section 9(a) because
of a termination of his employment by the Company without Cause or by the
Executive for Good Reason, from the date of such termination through the date of
the third anniversary of such termination date.
(b) During the period prior to the termination of the
Executive's employment hereunder, the term "Competition" for purposes of this
Agreement shall mean the Executive's management, development or construction of
any factory outlet centers or competing retail
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commercial property outside the Partnership and the Company or any other active
or passive investment in property connected with a factory outlet center or a
competing retail commercial property outside the Partnership and Company, with
the exception of
(1) the development or ownership of properties (or
replacement properties) which were owned collectively or individually
by the Executive, by members of his family or by any entity in which
any of them owned an interest or which was for the benefit of any of
them prior to June 30, 1993 (including the three factory outlet centers
in which Xxxxxxx X. Xxxxxx is a 50% partner, the shopping center on
West Market Street in Greensboro, North Carolina (such four properties
defined herein as the "Excluded Properties") and the interests of the
Tanger Family Limited Partnership),
(2) the ownership of up to 1% of any class of securities of
any publicly traded company, and
(3) service on the board of directors of any publicly traded
company, whether or not such company engages in Competition as defined
in this subsection 4(b).
Provided however, for any period following the termination of the Executive's
employment, the Executive shall be considered as engaging in "Competition"
prohibited by this Section only if the Executive engages in the prohibited
activities with respect to a property that is within a fifty (50) mile radius of
the site of any commercial property owned, leased or operated by the Company
and/or the Partnership on the date the Executive's employment terminated or with
respect to a property that is within a fifty (50) mile radius of any commercial
property which the Company and/or Partnership actively negotiated to acquire,
lease or operate within the six (6) month period ending on the date of the
termination of the Executive's employment.
(c) The Executive covenants that a breach of subsection 4(a)
above would immediately and irreparably harm the Partnership and the Company and
that a remedy at law would be inadequate to compensate the Partnership and the
Company for their losses by reason of such breach and therefore that the
Partnership and/or the Company shall, in addition to any other rights and
remedies available under this Agreement, at law or otherwise, be entitled to an
injunction to be issued by any court of competent jurisdiction enjoining and
restraining the Executive from committing any violation of subsection 4(a)
above, and the Executive hereby consents to the issuance of such injunction.
5. Registration Rights. The Executive shall have registration rights pursuant to
the Registration Rights Agreement attached hereto as Exhibit A.
6. Place of Performance. During his employment hereunder, the Executive shall be
based at the Partnership's principal executive offices and the Company's
principal executive offices located in Greensboro, North Carolina or New York
City, at the Executive's choice.
7. Compensation and Related Matters. During the Executive's employment
hereunder, the
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Executive shall be paid the compensation and shall be provided with the benefits
described below:
(a) Annual Base Salary. The Executive's annual base
compensation ("Annual Base Salary") payable with respect to the Contract Year
ending December 31, 1995 was $200,000. The amount of Annual Base Salary payable
to the Executive with respect to each Contract Year thereafter shall be an
amount negotiated between and agreed upon by the Executive and the Board of
Directors of the Company (in its capacity as general partner and in its own
behalf) but in no event less than the Executive's Annual Base Salary for the
prior Contract Year increased by the Consumer Price Index adjustment described
in the following paragraph.
If the FFO Per Share for the Contract Year ending December 31, 1995 or
for any succeeding Contract Year equals or exceeds the Target for that Contract
Year, the Executive's Annual Base Salary for the next Contract Year shall be
increased to reflect any increase in the Consumer Price Index for All Urban
Consumers (CPI-U), U.S. City Average for All Items as determined by the United
States Department of Labor, Bureau of Labor Statistics using 1982- 84=100 as the
standard reference base or, if there be no such Consumer Price Index, then by
the successor or the most nearly comparable successor index thereto
(appropriately adjusted to the 1982-84=100 standard reference base). For the
purpose of determining such increased Annual Base Salary for a Contract Year,
the Basic Index Figure ("BIF") shall be such Consumer Price Index for the month
of October in the second preceding Contract Year. The Current Index Figure
("CIF") shall be the corresponding Consumer Price Index for the month of October
in the immediately preceding Contract Year. The Annual Base Salary payable for a
Contract Year beginning after December 31, 1995 shall be no less than an amount
arrived at by multiplying the Annual Base Salary for the preceding Contract Year
by a fraction, of which the numerator shall be the Current Index Figure ("CIF")
and the denominator shall be the Basic Index Figure ("BIF"):
ABS for preceding Contract Year X CIF = ABS for the Contract Year
---
BIF
(b) Benefits. The Executive shall be entitled to
(1) receive stock options (incentive or nonqualified) under
the Company's Stock Option Plan and the Partnership's Unit Option Plan;
(2) participate in the Partnership's 401(k) Savings Plan,
and
(3) participate in or receive benefits under any employee
benefit plan or other arrangement made available by the Partnership or
the Company to any of its employees (collectively "Benefits"),on terms
at least as favorable as those on which any other employee of the
Partnership or the Company shall participate; provided, however, that
the Executive shall be entitled to four weeks of paid vacation during
each Contract
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Year, exclusive of Partnership holidays.
Without the Executive's prior written consent, the Company and/or the
Partnership will not terminate or reduce any benefits paid to the Executive
under this Section 7(b) unless the Executive is furnished with a benefit that is
substantially equivalent.
(c) Automobile. In addition to the other compensation and
benefits described in this Section 7, the Executive shall be entitled to receive
a fixed monthly automobile allowance of $800, payable at the same times that
Base Salary is payable hereunder. The allowance shall be in lieu of
reimbursement by the Company of any expense incurred by Executive to purchase or
lease a vehicle that will be available for use by the Executive on Company
business. The Executive shall not be required to provide the Company with
supporting documentation to substantiate any such expenses and the allowance
shall be payable whether or not the Executive actually incurs such automobile
expenses in the amount of the allowance. The Executive shall be responsible for
the expenses of leasing or purchasing an automobile which are in excess of the
allowance provided hereunder.
(d) Annual Bonus. As additional compensation for services
rendered, for each Contract Year in which the FFO Per Share shall equal or
exceed the Target, the Executive shall receive an annual bonus ("Annual Bonus)
equal to the sum of (A) $100,000 and (B) the product of (x) the Executive's
Annual Base Salary for such Contract Year and (y) a fraction (which shall not
exceed 1.0) the numerator of which shall be the percentage by which the FFO Per
Share shall exceed the Target for such Contract Year, and the denominator of
which shall be ten percent (10%).
Each Annual Bonus shall be paid no later than 30 days after the
information sufficient to calculate it has been delivered to the Company and the
Partnership by the Company's outside auditors, unless the Executive shall elect
to defer the receipt of such Annual Bonus pursuant to the Executive Deferred
Compensation Plan.
(e) Expenses. The Partnership and the Company shall promptly
reimburse the Executive for all reasonable travel and other business expenses
incurred by the Executive in the performance of his duties to the Partnership
and the Company, respectively hereunder.
(f) Payment of Compensation. For each Contract Year or portion
thereof covered by this Agreement, the Company shall be liable for the
percentage described below (the "Company Percentage") of the cost of the
Executive's Annual Base Salary, and for any options granted to the Executive
pursuant to the Company's Stock Option Plan, and the Partnership shall be liable
for the remainder of the cost of the Executive's total compensation (including
options granted to the Executive pursuant to the Partnership's Unit Option
Plan).
The Company Percentage for each Contract Year shall be determined by
the Board of Directors of the Company (in its capacity as general partner and in
its own behalf), excluding the Executive, as the reasonable allocation of the
benefits for the Executive's services.
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8. Termination. The Executive's employment hereunder may be terminated prior to
the end of the Contract Term by the Partnership, the Company or the Executive,
as applicable, without any breach of this Agreement only under the following
circumstances:
(a) Death. The Executive's employment hereunder shall
terminate upon his death.
(b) Disability. If the Disability of the Executive has
occurred during the Contract Term, the Partnership or the Company, respectively,
may give the Executive written notice in accordance with Section 15(c) of its
intention to terminate the Executive's employment. In such event, the
Executive's employment with the Partnership and the Company shall terminate
effective on the 30th day after receipt of such notice by the Executive,
provided that within the 30 days after such receipt, the Executive shall not
have returned to full-time performance of his duties.
(c) Cause. The Partnership or the Company may terminate the
Executive's employment hereunder for Cause.
(d) Good Reason. The Executive may terminate his employment
for Good Reason.
(e) Without Cause. The Partnership or the Company may
terminate the Executive's employment hereunder without Cause upon 30 days
notice.
(f) Resignation without Good Reason. The Executive may resign
his employment without Good Reason upon 90 days written notice to the
Partnership and the Company.
(g) Notice of Termination. Any termination of the Executive's
employment hereunder by the Partnership, the Company or the Executive (other
than by reason of the Executive's death) shall be communicated by a notice of
termination to the other parties hereto. For purposes of this Agreement, a
"notice of termination" shall mean a written notice which (i) indicates the
specific termination provision in the Agreement relied upon, (ii) sets forth in
reasonable detail any facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision indicated and
(iii) specifies the effective date of the termination.
9. Severance Benefits.
(a) Termination without Cause or for Good Reason: If the
Executive's employment shall be terminated (i) by the Company or the Partnership
other than for Cause (as defined above) or (ii) by the Executive for Good Reason
(as defined above) and subject to the limitation in Section 10, the Partnership
and the Company shall pay a lump sum cash payment (the "Severance Payment") to
the Executive within thirty (30) days after such termination of the
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Executive's employment in an amount equal to 300% of the sum of (A) his Annual
Base Salary, (B) his Deemed Annual Bonus for the Contract Year in which the
termination occurs and (C) his annual automobile allowance under Section 7(c)
hereof. In addition, the Partnership and the Company shall continue to provide
all Benefits to the Executive under this Agreement for each Contract Year
through the end of the Contract Term. For these purposes, the Executive's Deemed
Annual Bonus for any Contract Year shall be the greater of (i) the Executive's
Average Annual Bonus for that Contract Year and (ii) Executive's Annual Bonus
for the prior Contract Year. The Executive's Average Annual Bonus for a Contract
Year shall be an amount equal to the sum of all Annual Bonuses earned by the
Executive for the Contract Years immediately preceding the Contract Year for
which the calculation is being made (not exceeding three (3) Contract Years)
divided by the number of such Annual Bonuses.
(b) Termination by Death or Disability. Upon the termination
of the Executive's employment by reason of his death or Disability, the Company
shall pay to the Executive or to the personal representatives of his estate (i)
within thirty (30) days after the termination, a lump-sum amount equal to the
amount of Annual Base Salary that would have been due through the end of the
Contract Term assuming no early termination had occurred and assuming no
increases or decreases in Annual Base Salary and (ii) on or before the day on
which the Executive's Annual Bonus for the Contract Year in which the
termination occurs would have been payable if the termination had not occurred,
an amount equal to the Annual Bonus the Executive would have received for that
Contract Year if the termination had not occurred multiplied by a fraction the
numerator of which is the number of days in that Contract Year before the date
of termination and the denominator of which is 365. This subsection 9(b) shall
not limit the entitlement of the Executive, his estate or beneficiaries to any
disability or other benefits then available to the Executive under any life,
disability insurance or other benefit plan or policy which is maintained by the
Partnership or the Company for the Executive's benefit.
(c) Termination for Cause or Without Good Reason. If the
Executive's employment is terminated by the Company for Cause or by the
Executive without Good Reason, the Executive shall be entitled to all Annual
Base Salary and all Benefits accrued through the date of termination and to any
accrued but unpaid Annual Bonus for a Contract Year prior to the Contract Year
in which the Executive's employment was terminated.
(d) Assignment of Life Insurance. Upon any termination of the
Executive's employment hereunder, the Partnership and the Company shall, at
Executive's option (exercisable at any time during the period commencing upon
the termination of his employment and ending 90 days thereafter), transfer the
life insurance policy described in such Section 11(b) to Executive, for no
consideration. In addition, notwithstanding any provision of the Partnership's
Executive Deferred Compensation Plan to the contrary, all amounts in the
Executive's account under such Plan (if there is such a Plan) shall be
immediately payable to him.
(e) Survival. Neither the termination of the Executive's
employment hereunder nor the expiration of the Contract Term shall impair the
rights or obligations of any
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party hereto which shall have accrued hereunder prior to such termination or
expiration.
(f) Mitigation of Damages. In the event of any termination of
the Executive's employment by the Partnership or the Company, the Executive
shall not be required to seek other employment to mitigate damages, and any
income earned by the Executive from other employment or self-employment shall
not be offset against any obligations of the Partnership or the Company to the
Executive under this Agreement.
10. Limitation on Severance Benefits.
(a) Notwithstanding any other provision of this Agreement, and
except as provided in paragraph 10(b) below, payments and benefits to which
Executive would otherwise be entitled under the provisions of this Agreement
will be reduced (or the Executive shall make reimbursement of amounts previously
paid) to the extent necessary to prevent the Executive from having any liability
for the federal excise tax levied on certain "excess parachute payments" under
section 4999 of the Internal Revenue Code as it exists as of the date of this
Agreement.
(b) The Executive may determine the amount (if any) of
reduction for each payment or benefit that he would otherwise be entitled to
receive. The extent to which the payments or benefits to the Executive are to be
reduced pursuant to paragraph 10(a) will be determined by the accounting firm
servicing the Company on the date that the Executive's employment is terminated.
The Company shall pay the cost of such determination.
(c) If the final determination of any reduction in any benefit
or payment pursuant to this Section has not been made at the time that the
Executive is entitled to receive such benefit or payment, the Company shall pay
or provide an estimated amount based on a recommendation by the accounting firm
making the determination under subparagraph 10(b). When the final determination
is made, the Company shall pay the Executive any additional amounts that may be
due or the Executive shall reimburse the Company for any estimated amounts paid
to the Executive that were in excess of the amount payable hereunder.
11. Insurance.
(a) Officers and Directors Fiduciary Liability Insurance:
During the Executive's employment hereunder, the Company shall maintain, at its
expense, officers and directors fiduciary liability insurance that would cover
the Executive in an amount of no less than $3 million per year.
(b) Term Life Insurance: During the Executive's employment
hereunder and for a period of ninety (90) days thereafter, the Company shall
maintain in force a term life insurance policy on the Executive in the face
amount of $10 million. If the Executive's employment is terminated prior to the
expiration of the Contract Term (other than by reason of the Executive's death,
a termination by the Company for Cause or a termination by the
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Executive without Good Reason), the Company shall pay, prior to the expiration
of the ninety (90) period described in the preceding sentence, either to the
Executive or, on behalf of the Executive, to the issuer(s) of such life
insurance policy(ies), an amount sufficient to pay the premiums to maintain such
policy(ies) in force for the remainder of the Contract Term.
The Company shall be liable for the Company Percentage (as
described in Section 7(f)) of the annual premium for such term life insurance
policy and the Partnership shall be liable for the remainder of such premium.
The beneficiary of such insurance shall be designated, from time to time, by the
Executive in his sole and absolute discretion.
12. Disputes and Indemnification.
(a) Any dispute or controversy arising under, out of, in
connection with or in relation to this Agreement shall, at the election and upon
written demand of any party to this Agreement, be finally determined and settled
by arbitration in the City of New York, New York in accordance with the rules
and procedures of the American Arbitration Association, and judgment upon the
award may be entered in any court having jurisdiction thereof.
(b) The Partnership and/or the Company shall promptly pay
pursuant to Section 7(e) as incurred, to the full extent permitted by law, all
legal fees and expenses which the Executive may reasonably incur as a result of
any contest (regardless of the outcome thereof) by the Partnership, the Company,
the Executive or others of the validity or enforceability of, or liability
under, any provision of this Agreement.
(c) The Company and the Partnership agree that if the
Executive is made a party, or is threatened to be made a party, to any action,
suit or proceeding, whether civil, criminal, administrative or investigative (a
"Proceeding"), by reason of the fact that he is or was a director, officer or
employee of the Company or the Partnership or is or was serving at the request
of the Company or the Partnership as a director, officer, member, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, including service with respect to employee benefit plans, whether or
not the basis of such Proceeding is the Executive's alleged action in an
official capacity while serving as a director, officer, member, employee or
agent, the Executive shall be indemnified and held harmless by the Company and
the Partnership to the fullest extent legally permitted, against all cost,
expense, liability and loss (including, without limitation, attorney's fees,
judgements, fines, ERISA excise taxes or penalties and amounts paid or to be
paid in settlement) reasonably 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 or
agent of the Company or the Partnership or other entity and shall inure to the
benefit of Executive's heirs, executors and administrators. The Company and/or
the Partnership shall advance to the Executive all reasonable costs and expenses
incurred by him in connection with a Proceeding within 20 days after receipt by
them of a written request for such advance. Such request shall include an
undertaking by the Executive to repay the amount of such advance, without
interest, if it shall ultimately be determined that he is not entitled to be
indemnified against such costs and expenses.
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13. Binding on Successors. This Agreement shall be binding upon and inure to the
benefit of the Partnership, the Company, the Executive and their respective
successors, assigns, personal and legal representatives, executors,
administrators, heirs, distributees, devisees, and legatees, as applicable.
14. Governing Law. This Agreement shall be governed, construed, interpreted and
enforced in accordance with the substantive laws of the State of North Carolina,
without reference to principles of conflicts or choice of law under which the
law of any other jurisdiction would apply.
15. Validity. The invalidity or unenforceability of any provision or provisions
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.
16. Notices. Any notice, request, claim, demand, document and other
communication hereunder to any party shall be effective upon receipt (or refusal
of receipt) and shall be in writing and delivered personally or sent by telex,
telecopy, or certified or registered mail, postage prepaid, as follows:
(a) If to the Partnership, to:
Xx. Xxxxxxxx Xxxxxxx
Tanger Properties Limited Partnership
X.X. Xxx 00000
0000 Xxxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
(b) If to the Company, to:
Xx. Xxxxxxxx Xxxxxxx
Tanger Factory Outlets Centers, Inc.
X.X. Xxx 00000
0000 Xxxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
(c) If to the Executive, to:
Xx. Xxxxxx X. Xxxxxx
000 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
or at any other address as any party shall have specified by notice in writing
to the other parties.
17. Counterparts. This Agreement may be executed in several counterparts, each
of which shall be deemed to be an original, but all of which together will
constitute one and the same Agreement.
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18. Entire Agreement. The terms of this Agreement are intended by the parties to
be the final expression of their agreement with respect to the employment of the
Executive by the Partnership and the Company and may not be contradicted by
evidence of any prior or contemporaneous agreement. The parties further intend
that this Agreement shall constitute the complete and exclusive statement of its
terms and that no extrinsic evidence whatsoever may be introduced in any
judicial, administrative, or other legal proceeding to vary the terms of this
Agreement.
19. Amendments; Waivers. This Agreement may not be modified, amended, or
terminated except by an instrument in writing, signed by the Executive, a member
of the Partnership and a disinterested director of the Company. By an instrument
in writing similarly executed, the Executive or the Company and the Partnership
may waive compliance by the other party or parties with any provision of this
Agreement that such other party was or is obligated to comply with or perform,
provided, however, that such waiver shall not operate as a waiver of, or
estoppel with respect to, any other or subsequent failure. No failure to
exercise and no delay in exercising any right, remedy, or power hereunder
preclude any other or further exercise of any other right, remedy, or power
provided herein or by law or in equity.
20. No Effect on Other Contractual Rights. Notwithstanding Section 8, the
provisions of this Agreement, and any other payment provided for hereunder,
shall not reduce any amounts otherwise payable to the Executive under any other
agreement between the Executive and the Partnership and the Company, or in any
way diminish the Executive's rights under any employee benefit plan, program or
arrangement of the Partnership or the Company to which he may be entitled as an
employee of the Partnership or the Company.
21. No Inconsistent Actions. The parties hereto shall not voluntarily undertake
or fail to undertake any action or course of action inconsistent with the
provisions or essential intent of this Agreement. Furthermore, it is the intent
of the parties hereto to act in a fair and reasonable manner with respect to the
interpretation and application of the provisions of this Agreement.
22. Legal Fees. The Company and/or the Partnership agree to pay all legal fees
and expenses incurred by the Executive in negotiating this Agreement promptly
upon receipt of appropriate statements therefor.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date and year first above written.
EXECUTIVE
/s/ Xxxxxx X. Xxxxxx
--------------------
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TANGER FACTORY OUTLET CENTERS, INC.,
a North Carolina corporation
By: __________________________________
TANGER PROPERTIES LIMITED PARTNERSHIP
By: Tanger Factory Outlet Centers, Inc.
its general partner
By: ___________________________________
The Partnership and the Company hereby jointly and severally guarantee to the
Executive the prompt payment in full of the compensation owed hereunder by the
other.
TANGER PROPERTIES LIMITED PARTNERSHIP
By: Tanger Factory Outlet Centers, Inc.,its general partner
By: ___________________________________
TANGER FACTORY OUTLET CENTERS, INC.,
a North Carolina corporation
By: ___________________________________
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