Re: Change in Control and Noncompetition Agreement
Exhibit 10.12
January 30, 2011
Xxxxxx X. Xxxxxx
c/o AMB Property Corporation
Pier 1, Bay 1
Xxx Xxxxxxxxx XX 00000
c/o AMB Property Corporation
Pier 1, Bay 1
Xxx Xxxxxxxxx XX 00000
Dear Xx. Xxxxxx:
Reference is made to the Change in Control and Noncompetition Agreement between you and AMB
Property, L.P, dated as of September 27, 2007 (the “CIC Agreement”). This letter sets
forth your agreement to amend Sections 1, 2 and 3.5 of the CIC Agreement; provided that such
amendments shall be effective only in connection with, and subject to the consummation of, the
transactions contemplated by the Agreement and Plan of Merger by and among AMB Property
Corporation, AMB Property, L.P., Prologis, Upper Pumpkin LLC, New Pumpkin and Pumpkin LLC, dated as
of January 30, 2011 (the “Merger Agreement”). Capitalized terms used and not defined in
this letter shall have the meanings ascribed to them in the CIC Agreement.
1. The Company and you agree that Section 1 of the CIC Agreement is amended by adding the following
sentence to the end of such section, effective only upon, and conditioned upon, the Topco Effective
Time:
Notwithstanding the foregoing, this Agreement shall not terminate until the end of
the twenty-fourth (24) calendar month following the Topco Effective Time (as defined
in the Agreement and Plan of Merger by and among AMB Property Corporation, AMB
Property, L.P., Prologis, Upper Pumpkin LLC, New Pumpkin and Pumpkin LLC, dated as
of January 30, 2011 (the “Merger Agreement”)); provided, however, that if a
Change in Control (as defined in Section 2) shall occur following the Topco
Effective Time during the term of this Agreement, this Agreement shall not terminate
until the end of the twenty-fourth (24) calendar month after the date on which such
a Change in Control occurs (the effective date of each such Change in Control
constituting a new “Change in Control Date”), at which time it will expire.
2. The Company and you agree that the consummation of the transactions contemplated by the Merger
Agreement will constitute a “Change in Control” within the meaning of the CIC Agreement, and
effective as of the Topco Effective Time, the definition of “Change in Control” in Section 2 of the
CIC Agreement shall be amended to add the following sentence at the end thereof:
Notwithstanding any other provision of this Agreement to the contrary, the Topco
Merger (as defined in the Merger Agreement) shall constitute a Change in Control,
and the Topco Effective Time (as defined in the Merger Agreement), shall constitute
the Change in Control Date applicable to such Change in Control.
Pier 0, Xxx 0 Xxx Xxxxxxxxx, Xxxxxxxxxx 00000 Xxxxxx Xxxxxx Main x0 000 000 0000 Fax x0 000 000 00000
3. The Company and you agree that Section 3.5 of the CIC Agreement is amended in its entirety
to read as follows. effective only upon, and conditioned upon, the Topco Effective Time:
3.5 Accelerated Vesting of Equity-Based Awards. Notwithstanding anything to
the contrary set forth in any stock, option or other equity incentive award plan of
the Company or in any option. restricted stock or other equity-based award agreement
between the Company and the Executive (regardless of whether such agreement is under
any such stock, option or other equity incentive award plan), upon the Executive’s
termination of employment with the Company under circumstances which entitle the
Executive to the payments and benefits described in Section 3.3 or upon the
Executive’s termination of employment due to death or Disability, (A) all options to
acquire any equity securities of the Company held by the Executive on the date of
such termination, and which also had been held by the Executive at the Topco
Effective Time shall immediately become exercisable and fully vested and (B) all
shares of restricted stock, restricted stock units, deferred stock awards and other
awards based upon the Company’s equity securities held by the Executive on the date
of such termination, and which also had been held by the Executive at the Topco
Effective Time, shall immediately become fully vested, exercisable or payable, as
applicable, and any forfeiture provisions with respect to such awards shall
immediately lapse.
You understand and agree that the effect of the foregoing amendment is to replace the
paragraph of your CIC Agreement providing for immediate vesting of your equity and equity-based
awards upon a Change in Control, with a paragraph providing that the vesting of equity and
equity-based awards held by you at the Topco Effective Time will accelerate upon a
severance-qualifying termination of employment or termination due to death or Disability during the
two-year period following a Change in Control.
Except as expressly set forth above, all of the terms and conditions of the CIC Agreement
shall remain in full force and effect without modification. This amendment is subject to the choice
of law, dispute resolution and other terms and conditions of the CIC Agreement as if set forth
therein.
Please acknowledge your understanding of and agreement to the provisions of this letter
(including the amendment to your CIC Agreement set forth herein) by signing this letter in the
space provided below and returning a copy to the undersigned. This letter may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.
Very truly yours, By: AMB PROPERTY, L.P., a Delaware limited partnership By: AMB Property Corporation, its general partner |
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By: | /s/ Xxxxx X. Xxxxxxxxx | |||
Senior Vice President, Human Resources |
Agreed to and acknowledged
as of the 30th day of January, 2011:
as of the 30th day of January, 2011:
/s/ Xxxxxx X. Xxxxxx |