Document:

Exhibit 10.1

 

AMENDED AND RESTATED CONSULTING AGREEMENT

JAMES H. RICHARDSON

 

THIS AMENDED AND RESTATED CONSULTING AGREEMENT (the “Agreement”) is entered into between Alexandria Real Estate Equities, Inc. (“Client”) and James H. Richardson (“Consultant”) (each, a “Party”), effective as of the Effective Date (as defined in Section 26 herein).

 

1.                                    Engagement of Services.  Subject to the terms of this Agreement, Consultant will render the services (the “Services”) set forth in the Project Assignment attached to this Agreement as Exhibit A  (“Project Assignment”), commencing as of January 1, 2011 (the “Consulting Commencement Date”).  This Agreement replaces and supersedes the Consulting Agreement entered into by Consultant and Client that was made effective as of February 12, 2009.

 

2.                                    Compensation.  Client will compensate Consultant for the Services as set forth in the Project Assignment pursuant to this Agreement, or in such other Project Assignments as Client and Consultant may agree upon in writing.  Consultant will be reimbursed for expenses as described in the Project Assignment.  Upon termination of this Agreement for any reason, Consultant will be paid fees on the basis stated in the Project Assignment(s) for authorized work which has been completed.

 

3.                                    Ownership of Work Product.  Consultant hereby assigns to Client all right, title and interest in and to any work product created or contributed by Consultant pursuant to this Agreement (the “Work Product”), if any, including all copyrights, trademarks and other intellectual property rights contained therein.  Consultant agrees to execute, at Client’s request and expense, all documents and other instruments necessary or desirable to confirm such assignment, including without limitation, the copyright assignment set forth as Exhibit B (Assignment of Copyright).  In the event that Consultant does not, for any reason, execute such documents within a reasonable time of Client’s request, Consultant hereby irrevocably appoints Client as Consultant’s attorney-in-fact for the purpose of executing such documents on Consultant’s behalf, which appointment is coupled with an interest.  Consultant understands and agrees that Consultant has no right to use the Work Product except as necessary to perform the Project Assignment for Client.

 

4.                                    License and Waiver of Other Rights.  If Consultant has any rights, including without limitation “artist’s rights” or “moral rights,” in the Work Product which cannot be assigned, Consultant agrees to waive enforcement worldwide of such rights against Client.  In the event that Consultant has any such rights, that cannot be assigned or waived, Consultant unconditionally grants to Client an exclusive, perpetual, irrevocable, worldwide, fully-paid license, with the right to sublicense through multiple levels of sublicensees, under any and all such rights:  (a) to reproduce, create derivative works of, distribute, publicly perform, publicly display, digitally transmit, and otherwise use the Work Product in any medium or format, whether now known or hereafter discovered; (b) to use, make, have made, sell, offer to sell, import, and otherwise exploit any product or service based on, embodying, incorporating, or derived from the Work Product; and (c) to exercise any and all other present or future rights in the Work Product.

 

5.                                    Representations and Warranties.  Consultant represents and warrants that: (a) Consultant has the right and unrestricted ability to perform the Services required under this Agreement and to assign the Work Product to Client as set forth in Section 3 (including without limitation the right to assign any Work Product created by Consultant’s employees or contractors); (b) Consultant will not knowingly create or contribute any Work Product that infringes upon any copyright, patent, trademark, right of publicity or privacy, or any other proprietary right of any person, whether contractual, statutory or based upon common law; (c) Consultant will take all necessary or reasonable precautions to prevent injury to any person (including Client employees, business contacts, tenants or potential tenants) or damage to any real property or other property (including Client Property and Equipment (as defined below)) during the term of this Agreement (provided that, Consultant will not be responsible for any injuries or damages caused by Client’s employees); and (d) the Services and all Work Product

 

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will fully conform to the specifications, requirements, and other terms in the applicable Project Assignment and this Agreement.

 

6.                                    Independent Contractor Relationship.  Consultant’s relationship with Client is that of an independent contractor, and nothing in this Agreement is intended to, or should be construed to, create a partnership, agency, joint venture or employment relationship.  Subject to Section 14, Consultant is excluded from participating in any fringe benefit plans or programs as a result of the performance of the Services, without regard to Consultant’s independent contractor status, including, but not limited to, health, sickness, accident or dental coverage, life insurance, disability benefits, severance, accidental death and dismemberment coverage, unemployment insurance coverage, workers’ compensation coverage, and pension or 401(k) benefit(s) provided by the Client to its employees.  Consultant agrees, as an independent contractor, that he is not entitled to unemployment benefits in the event this Agreement terminates, or workers’ compensation benefits in the event that Consultant is injured in any manner or becomes ill while performing the Services under this Agreement.  Consultant, at Consultant’s sole cost, expense and discretion, will maintain appropriate insurance coverage and benefits for Consultant and any of Consultant’s employees, including but not limited to workers’ compensation insurance coverage to the extent such coverage is required.  Consultant is not authorized to make any representation, contract or commitment on behalf of Client unless specifically requested or authorized in writing to do so by a Client officer or as provided in the applicable Project Assignment.  Consultant is solely responsible for, and will file, on a timely basis, all tax returns and payments required to be filed with, or made to, any federal, state or local tax authority with respect to the performance of Services and receipt of fees under this Agreement.  Consultant is solely responsible for, and must maintain adequate records of, expenses incurred in the course of performing Services under this Agreement.  No part of Consultant’s compensation will be subject to withholding by Client for the payment of any social security, federal, state or any other employee payroll taxes.  Client will regularly report any amounts paid to Consultant by filing Form 1099-MISC with the Internal Revenue Service as required by law.

 

7.                                    Confidential Information.  Consultant agrees to hold Client’s Confidential Information in strict confidence and to refrain from any disclosure, use or publication of such Confidential Information, except as expressly authorized in writing by Client, during the term of this Agreement and thereafter.  “Confidential Information” means any and all information related to Client’s or its affiliates’ business (including trade secrets, ideas, media, techniques, specifications, designs, plans, forecasts, reports, financial statements and models, budgets, technical information, works of authorship, databases, information systems, software and source documentation, spreadsheets, analyses or analytical methods, financial or operational models, algorithms, know-how, processes, customized construction and design features, fixtures, equipment, building systems, laboratory and office systems, forms of leases and related documentation, names of actual or prospective investors, business partners, employees, tenants, customers, vendors, suppliers, distributors and clients, proposals, bids, forecasts, market information, information relating to research and development, properties, completed or potential future property acquisitions, redevelopments, construction projects and investments, procurement requirements, and the existence of any business discussions, negotiations, or contractual relationships between Client or its affiliates and any third party) that is labeled or identified as “confidential” or “proprietary” or that Consultant otherwise knows, or would reasonably be expected to know, Client or its affiliates consider to be confidential or proprietary.  Consultant has a duty to treat as confidential all of the foregoing whether provided or made accessible by Client or its affiliates or learned or acquired during the performance of the Services. Consultant’s obligations set forth in this Section 7 shall not apply with respect to any portion of the Confidential Information that: (a) was in the public domain at the time it was communicated to Consultant by Client or its affiliates; (b) entered the public domain through no fault of Consultant, subsequent to the time it was communicated to Consultant by Client or its affiliates; (c) was in Consultant’s possession free of any obligation of confidence at the time it was communicated to Consultant by Client or its affiliates; (d) was rightfully communicated to Consultant free of any obligation of confidence subsequent to the time it was communicated to Consultant by Client or its affiliates; (e) was developed by employees or agents of Consultant independently of and without reference to any information communicated to Consultant by Client or its affiliates; or (f) was communicated by Client to an unaffiliated third party free of any obligation of confidence.  Confidential Information does not include basic business know-how that is

 

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generally known and used within the real estate or life science industries, including but not limited to basic business know-how and skills developed during Consultant’s employment with Client.  Consultant may disclose Client’s and its affiliates’ Confidential Information in response to a valid order by a court or other governmental body, or as otherwise required by law, after having given Client and its affiliates sufficient prior notice to permit Client and its affiliates a reasonable opportunity to lodge objections to such disclosure.  All Confidential Information furnished to Consultant by Client and its affiliates, or developed by Consultant on Client’s behalf, is the sole and exclusive property of Client and its affiliates or their suppliers or customers.  Upon request by Client, Consultant agrees to promptly deliver to Client the original and any copies of such Confidential Information.  Consultant understands and acknowledges that Client is a public company, and that the disclosure of information relating to Client and its affiliates is subject to state and federal securities laws.  Consultant agrees not to take any action to violate applicable federal and state securities laws.

 

8.                                    Return of Client Property.  Upon termination of the Agreement or earlier as requested by Client, Consultant shall deliver to Client all of Client’s property, if any, including equipment (including, without limitation, computers, personal computing devices, or similar devices), software programs, documents, records, proposals, notes, notebooks, lists (including any lists of business contacts, prospects, tenants, prospective tenants, properties, customers, clients, vendors, suppliers, distributors, consultants or agents with whom Client does business), files, promotional literature, and reports, studies, fact sheets, drawings, specifications, models, brochures, documents and materials relating to acquisitions or potential acquisitions, documents and materials relating to redevelopments or developments, agreements, leases, term sheets, letters of intent and similar documents, draft documents, and any and all materials containing or disclosing (in whole or in part) Work Product or Confidential Information; and any and all other materials including, without limitation, computerized and/or electronic information that refers, relates or otherwise pertains to Client and/or its officers, directors, agents, employees and consultants, and any and all business dealings of said persons and entities, which Consultant received or developed during Consultant’s engagement by Client or which Consultant otherwise possesses or controls, together with all copies or reproductions thereof, in whole or in part (collectively, the “Client Property and Equipment”).  Consultant shall not retain any Client Property and Equipment, including any copies, duplicates, or embodiments thereof.  Consultant agrees to certify in writing that Consultant has conducted a diligent search to locate any property or information described in this paragraph that is within Consultant’s custody or control and that Consultant has complied with the requirements of this paragraph.  Consultant further agrees that any property situated on Client’s premises and owned by Client, including disks and other storage media or electronic systems, files, filing cabinets, desks, or other work areas, is subject to inspection by Client personnel at any time with or without notice.  In the event of a legal claim by Consultant against Client, Client shall make available for inspection, under reasonable confidentiality restrictions, such Client Property and Equipment as is reasonably related to the issues raised by such claim.  Notwithstanding the foregoing, Consultant may retain any documents that he received in his capacity as a director or shareholder of Client, including but not limited to annual reports distributed to shareholders.

 

9.                                    No Conflict of Interest.  Consultant acknowledges and agrees that he will be providing services that are special, unique or extraordinary, and, due to the nature of his Services, his engagement in any of the activities prohibited in this Section 9 would necessarily involve the unauthorized use or disclosure of Confidential Information, and the proprietary relationships and goodwill of Client.  Accordingly, Consultant shall not, during the period of Consultant’s engagement by Client and for a period of two (2) years thereafter, engage in any activity that is or may be (in the reasonable discretion of Client) competitive with Client, directly or indirectly, and whether or not for compensation, in the business of owning, operating, acquiring, managing, leasing, expanding, developing or redeveloping commercial properties throughout the United States containing office and laboratory space designed or improved for lease to pharmaceutical, biotechnology, life science product and services companies, not for profit scientific research institutions, universities, diagnostic and personal care products companies, or government agencies (for the purpose of laboratory research); and Consultant acknowledges that to engage in such activity Consultant would inevitably use Client’s Confidential Information.  Consultant warrants that there is no other contract or duty on Consultant’s part inconsistent with this Agreement.

 

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10.                            Term and Termination.

 

10.1                    Term.  The term of this Agreement (the “Term”) is from the Consulting Commencement Date hereof through the date on which it is terminated pursuant to the provisions of Section 10.2 (Termination) hereof.

 

10.2                    Termination.  During the Term of the Agreement, either party may terminate this Agreement, or any Project Assignment hereunder, with or without cause at any time upon thirty (30) days prior written notice to the other party.  In addition, during the Term of the Agreement, either party may terminate this Agreement immediately upon giving written notice in the event of the other party’s material breach of the Agreement.  In addition, Consultant may terminate this Agreement as provided under Section 19 (No Assignment or Subcontracting).

 

10.3                    Survival.  The rights and obligations contained in the following Sections:  3 (Ownership of Work Product), 4 (License and Waiver of Other Rights), 5 (Representations and Warranties), 6 (Independent Contractor Relationship), 7 (Confidential Information), 8 (Return of Client Property), 9 (No Conflict of Interest), 11 (Nonsolicitation), 12 (Noninterference with Business), 13 (Indemnification; Limitation of Liability), 17 (Governing Law), 18 (Severability), 19 (No Assignment or Subcontracting), 20 (Notices), 21 (Remedies), 22 (Waiver), and 23 (Dispute Resolution) will survive any termination or expiration of the Term of the Agreement.

 

11.                            Nonsolicitation.  Consultant acknowledges that, because of the nature of Consultant’s work for Client, Consultant’s solicitation, servicing or retention of certain tenants (“Tenants”), or certain brokers, vendors, suppliers, distributors, consultants, or partners with whom Client does business from time to time related to Consultant’s work for Client (each such person or entity, a “Supplier”) would necessarily involve the unauthorized use or disclosure of Confidential Information, and the proprietary relationships and goodwill of Client.  Accordingly, during the Term of this Agreement and for a period of one (1) year following the termination of the Agreement for any reason (the “Post-Termination Period”), Consultant shall not, without Client’s express written consent, directly or indirectly solicit:  (a) any Tenant of Client with which Consultant actually engaged in business transactions on behalf of Client during the two (2) year period prior to the termination of the Agreement (the “Pre-Termination Period”); (b) any Tenant of Client served during such Pre-Termination Period by an office of Client located in any geographic area where Consultant provided services to Client pursuant to this Agreement or any prior employment or consulting agreement with Client; or (c) any Supplier or strategic partner of Client during the Pre-Termination Period (i) to perform services within the life sciences or data center fields, or (ii) that is then providing, or is under contract to provide during the one year Post-Termination Period, services to Client, which would be interrupted or impeded as a result of such solicitation.  Consultant further agrees that for a period of two (2) years following the termination of the Agreement, Consultant shall not, without Client’s express written consent, directly or indirectly solicit, induce, or attempt to solicit or induce, any Tenant or Supplier to terminate his, her or its relationship with Client for any purpose, including but not limited to the purpose of associating with or becoming a Tenant or Supplier, whether or not exclusive, of Consultant or any entity of which Consultant is or becomes a partner, stockholder, principal, member, employee, officer, director, principal, contractor, agent, trustee or consultant.  Consultant understands that Consultant is not prohibited from accepting engagement by a Tenant, Supplier or strategic partner, provided such Consultant acts in accordance herewith.

 

12.                            Noninterference with Business.  During the Term of this Agreement and for a period of one (1) year following the termination of the Agreement, Consultant shall not, directly or indirectly, solicit, induce, encourage or attempt to solicit, induce or encourage any person known to Consultant to be an employee or independent contractor of Client to terminate his or her engagement by or other relationship with Client for any purpose whatsoever, including but not limited to the purpose of associating with any entity of which Consultant is or becomes an employee, officer, director, partner, stockholder, agent, trustee, consultant, or contractor, or any competitor of Client.

 

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13.                            Indemnification; Limitation of Liability.  Client agrees to indemnify Consultant and hold Consultant harmless with respect to Services performed in good faith by Consultant except with regard to gross negligence, willful misconduct, or material breach by Consultant; and, in any event, Consultant’s liability to Client for claims arising from Services performed hereunder shall be limited to the total amount of fees (including but not limited to retainers) paid hereunder.  IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, EXEMPLARY, SPECIAL, OR INCIDENTAL DAMAGES ARISING FROM OR RELATING TO THIS AGREEMENT.  EACH PARTY’S TOTAL CUMULATIVE LIABILITY IN CONNECTION WITH THIS AGREEMENT, WHETHER IN CONTRACT OR TORT OR OTHERWISE, WILL NOT EXCEED THE AGGREGATE AMOUNT OF FEES AND EXPENSES OWED BY CLIENT TO CONSULTANT FOR SERVICES PERFORMED UNDER THIS AGREEMENT.

 

14.                            Stock Awards and Other Benefits.

 

14.1.                Stock Awards.  During Consultant’s employment with Client, which terminated pursuant to Consultant’s resignation effective February 11, 2009 (the “Resignation Date”), Consultant was granted certain options to purchase shares of Client’s common stock (the “Options”) and Consultant was granted certain shares of restricted stock of Client (the “Restricted Stock”).  Consultant acknowledges that the Options were fully vested as of the Resignation Date.  During the Term of this Agreement, any unvested Restricted Stock will continue to vest and the forfeiture provisions for the Restricted Stock will not be triggered.  Notwithstanding anything to the contrary in Client’s Amended and Restated 1997 Stock Award and Incentive Plan or the applicable Restricted Stock agreements, vesting of the Restricted Stock will cease, and the forfeiture provisions for the Restricted Stock will be triggered, upon the termination of the Term of this Agreement, regardless of whether Consultant continues to serve as a director on the Board of Directors of Client.  During the period that ends upon the later of the termination of the Term of this Agreement or the termination of Consultant’s service as a director on the Board of Directors of Client, the post-termination exercise period for the Options will not be triggered.  Except as provided in this Section 14.1, the Options and Restricted Stock will continue to be governed in all respects by the terms of Client’s Amended and Restated 1997 Stock Award and Incentive Plan and the applicable Option and Restricted Stock agreements.  Consultant acknowledges that any Options that currently qualify as incentive stock options lost that qualification three (3) months after Consultant’s final day of employment with Client.  Client advises Consultant to seek independent tax advice concerning the Options and Restricted Stock.

 

14.2.                Other Benefits.  Upon termination of Consultant’s employment with Client, as of the Resignation Date: (a) with respect to Client’s 401(k) Profit Sharing Plan (the “401(k) Plan”), Consultant shall not be eligible to make any further elective deferrals and will not receive any further employer profit sharing or other discretionary employer contributions under the 401(k) Plan, other than any such profit sharing contribution and employer “safe harbor” contribution made for the 2009 plan year to which Consultant may be entitled pursuant to the terms of the 401(k) Plan, and shall be entitled to receive a distribution of his account under the 401(k) Plan pursuant to the terms of the 401(k) Plan; (b) with respect to Client’s Cash Balance Pension Plan (the “Cash Balance Plan”), Consultant shall not be eligible to accrue any further benefits under the Cash Balance Plan, provided that Consultant’s accrued benefit under the Cash Balance Plan as of his employment termination date shall be credited with interest earnings pursuant to the terms of the Cash Balance Plan until Consultant receives a distribution of such benefit in accordance with the terms of the Cash Balance Plan; (c) with respect to Client’s Executive Profit Sharing Plan (the “Profit Sharing Plan”), Consultant shall not be eligible to receive any further employer profit sharing or other discretionary employer contributions under the Profit Sharing Plan, other than any such profit sharing contribution made for the 2009 plan year to which Consultant may be entitled pursuant to the terms of the Profit Sharing Plan, and shall be entitled to receive a distribution of his account under the Profit Sharing Plan pursuant to the terms of the Profit Sharing Plan; and (d) with respect to Client’s 2000 Deferred Compensation Plan (the “DCP”), (i) Consultant shall not be eligible to defer any compensation received from Client for services rendered after the Resignation Date or to be credited with any matching or other employer contribution from Client under the DCP, (ii) Consultant shall receive payment of the portion of his account under the DCP attributable to deferrals made prior to January 1, 2005 under the DCP upon the earlier of (1) his termination of service (including service rendered pursuant to this Agreement) with Client and (2) a date

 

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Consultant may elect in accordance with the terms of the DCP (provided, however, that such portion of his account that is attributable to amounts deferred under the 2000 Venture Investment Deferred Compensation Plan (the “VIP”) prior to January 1, 2005 as to which a “Distribution Event” under the terms of the VIP has not yet occurred, shall be made upon the occurrence of a Distribution Event), and (iii) Consultant shall receive payment of the portion of his account under the DCP attributable to deferrals made on or after January 1, 2005 under the DCP on the date that is six (6) months and one (1) day following the Resignation Date, or as soon as practicable thereafter.  Notwithstanding the foregoing, in the event of any conflict between the provisions of these sections 14.1 or 14.2 and the terms of the various plans discussed in these sections 14.1 and 14.2, the terms of the various plans shall control unless otherwise provided herein.

 

15.                            OFAC.  Consultant is currently:  (a) in compliance with, and shall at all times during the term of this Agreement remain in compliance with, the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury and any statute, executive order, or regulation relating thereto (collectively, the “OFAC Rules”); (b) not listed on, and shall not during the term of this Agreement be listed on, the Specially Designated Nationals and Blocked Persons List maintained by OFAC and/or on any other similar list maintained by OFAC or other governmental authority pursuant to any authorizing statute, executive order, or regulation; and (c) not a person or entity with whom a U.S. person is prohibited from conducting business under the OFAC Rules.

 

16.                            Systems Usage Policy.  Contemporaneous with signing this Agreement, Consultant must sign, date and return to Client the Systems Usage Policy for External Users attached hereto as Exhibit C.  Any breach by Consultant of the Systems Usage Policy for External Users shall be considered a breach of this Agreement (including for purposes of Section 10.2).

 

17.                            Governing Law.  This Agreement is governed by the laws of the State of California without reference to any conflict of laws principles that would require the application of the laws of any other jurisdiction.

 

18.                            Severability.  If any provision of this Agreement is, for any reason, held to be invalid or unenforceable, the other provisions of this Agreement will be unimpaired and the invalid or unenforceable provision will be deemed modified so that it is valid and enforceable to the maximum extent permitted by law in a manner consistent with the intent of the parties insofar as possible.

 

19.                            No Assignment or Subcontracting.  This Agreement and Consultant’s rights and obligations under this Agreement may not be assigned, delegated, subcontracted, or otherwise transferred, in whole or in part, by operation of law or otherwise, by Consultant without Client’s express prior written consent.  Any attempted assignment, delegation, or transfer in violation of the foregoing will be null and void.  Client may assign this Agreement, or any of its rights under this Agreement, to any third party with or without Consultant’s consent.  Notwithstanding the foregoing, if Client assigns this Agreement to a third party (other than any subsidiary entities of Client) without Consultant’s written consent (which shall not be unreasonably withheld), then Consultant may terminate this Agreement upon providing five (5) business days prior written notice to Client.

 

20.                            Notices.  All notices or reports permitted or required under this Agreement shall be in writing and shall be delivered by personal delivery, overnight courier upon written verification of receipt, facsimile transmission (including, but not limited to, PDF file) or by certified or registered mail, return receipt requested; and shall be deemed given upon personal delivery, date of receipt by facsimile transmission (provided that there is acknowledgement or evidence of receipt), or five (5) days after deposit in the mail, or one (1) day after deposit with an overnight courier.  Notices to Client for all purposes shall be sent to the attention of Client’s Chief Executive Officer at the address set forth in this Section 20 and to Consultant as set forth in the signature block below.  Either party may change its address at any time by specifying such change to the other party in writing.  Notices to Client shall be directed to: Chief Executive Officer, Alexandria Real Estate Equities, Inc., 385 East Colorado Blvd., Suite 299, Pasadena, California 91101; Facsimile: (626) 578-0770.

 

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21.                            Remedies.  Client’s and/or its affiliates’ remedies for any breach of this Agreement by Consultant will include damages (as provided in Section 13), injunctive relief, specific performance, and restitution.  Consultant acknowledges that any breach of this Agreement by Consultant would cause irreparable injury to Client and/or its affiliates for which monetary damages would not be an adequate remedy and, therefore, Client and/or its affiliates will be entitled to injunctive relief (including specific performance).  The rights and remedies provided to each Party in this Agreement are cumulative and in addition to any other rights and remedies available to such Party at law or in equity.

 

22.                            Waiver.  The waiver by Client of a breach of any provision of this Agreement by Consultant must be in writing to be effective and shall not operate or be construed as a waiver of any other or subsequent breach by Consultant.

 

23.                            Dispute Resolution.  Any dispute arising out of or relating to this Agreement, Consultant’s engagement by Client, or between Consultant and Client or Client’s officers, directors, agents or consultants, shall be submitted to final, binding and confidential arbitration by one arbitrator under the then-existing rules and procedures of JAMS, Inc. (“JAMS”) in arbitration proceedings conducted in Los Angeles, California.  BY AGREEING TO THIS PROCEDURE, BOTH CONSULTANT AND CLIENT WAIVE THE RIGHT TO RESOLVE ANY DISPUTE THROUGH A TRIAL BY JURY OR JUDGE OR ADMINISTRATIVE PROCEEDING.  The arbitrator shall have no power or authority to modify, enlarge or add to the terms and provisions of this Agreement, except as otherwise expressly agreed herein.  Judgment upon the award of the arbitrator shall be binding upon the parties and may be entered in any court having jurisdiction.  The arbitrator shall award to the prevailing party reasonable attorneys’ fees and expenses from the other party, including any expert fees, which fees and expenses shall be in addition to any other relief which may be awarded.  This arbitration obligation extends to, without limitation, claims or causes of action for wrongful termination, impairment of ability to compete in the open labor market, breach of an express or implied agreement, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation, slander, libel, infliction of emotional distress, disability, loss of future earnings, and claims under any applicable state Constitution, the United States Constitution, and any applicable state and federal laws, including, but not limited to, the Civil Rights Act of 1964 (as amended), the Fair Labor Standards Act (as amended), the National Labor Relations Act (as amended), the Labor-Management Relations Act (as amended), the Worker Retraining and Notification Act of 1988 (as amended), the Americans With Disabilities Act of 1990 (as amended), the Rehabilitation Act of 1973 (as amended), the Employee Retirement Income Security Act of 1974 (as amended), the Age Discrimination in Employment by Act of 1967 (as amended), and any and all similar state laws, rules and regulations.  Consultant’s obligations under this Agreement are of a unique character that gives them particular value; breach of any of such obligations will result in irreparable and continuing damage to Client for which there will be no adequate remedy at law; and, in the event of such breach, Client will be entitled to an award in arbitration for injunctive relief and/or a decree for specific performance, and such other and further relief as may be proper (including monetary damages if appropriate); and such injunctive relief from a court as may be necessary to avoid irreparable harm pending the outcome of arbitration.

 

24.                            Miscellaneous.  This Agreement constitutes the complete, final, and exclusive embodiment of the entire agreement between the parties relating to the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements and representations concerning such subject matter (including but not limited to the Consulting Agreement between Consultant and Client for Services that was made effective as of February 12, 2009) .  The terms of this Agreement will govern all services undertaken by Consultant for Client as of the Consulting Commencement Date; provided, however, that in the event of any conflict between the terms of this Agreement and any Project Assignment, the terms of the applicable Project Assignment will control.  This Agreement may only be modified or amended in a written agreement executed by Consultant and a duly authorized officer of Client.  Any ambiguity in this document shall not be construed against either party as the drafter.  The headings of the Sections and Paragraphs of this Agreement are inserted for ease of reference only, and will have no effect in the construction or interpretation of this Agreement.  This Agreement and any amendment or supplement to this Agreement may be executed in two or more counterparts, each of which will

 

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constitute an original but all of which will together constitute a single instrument.  Transmission by facsimile or PDF of an executed counterpart signature page hereof by a party hereto shall constitute due execution and delivery of this Agreement by such party.

 

25.                            Release of Claims.  Except as otherwise set forth in this Agreement, in exchange for the consideration under this Agreement to which Consultant would not otherwise be entitled, Consultant hereby generally and completely releases Client and its parent or subsidiary entities, successors, predecessors and affiliates, and its and their directors, officers, employees, shareholders, agents, attorneys, insurers, affiliates and assigns (collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to or on the date Consultant signs this Agreement (collectively, the “Released Claims”).  The Released Claims include, but are not limited to, all claims arising out of or in any way related to Consultant’s previous consulting relationship with Client.  Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (a) any rights or claims for indemnification Consultant may have pursuant to any written indemnification agreement with Client to which he is a party or under applicable law; (b) any rights which are not waivable as a matter of law; and (c) any claims for breach of this Agreement.  Consultant represents and warrants that, other than the Excluded Claims, Consultant is not aware of any claims he has or might have against any of the Released Parties that are not included in the Released Claims.  Consultant agrees that all parties released herein (other than Client) are third party beneficiaries of this Agreement who may enforce the terms of such release.

 

26.                            ADEA Waiver.  Consultant acknowledges that he is knowingly and voluntarily waiving and releasing any rights he may have under the ADEA, and that the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which he is already entitled.  Consultant further acknowledges that he has been advised as required by the ADEA, that:  (a) his waiver and release do not apply to any rights or claims that may arise after the date that he signs this Agreement; (b) he should consult with an attorney prior to signing this Agreement (although he may choose voluntarily not to do so); (c) he has twenty-one (21) days to consider this Agreement (although he may choose voluntarily to sign it earlier); (d) he has seven (7) days following the date he signs this Agreement to revoke it by providing written notice of revocation to Client’s Chief Executive Officer; and (e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth calendar day after the date that this Agreement is signed by Consultant (the “Effective Date”).

 

27.                            Section 1542 Waiver.  In giving the releases set forth in this Agreement, which includes claims which may be unknown to Consultant at present, Consultant acknowledges that he has read and understands Section 1542 of the California Civil Code which reads as follows:  “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”  Consultant hereby expressly waives and relinquishes all rights and benefits under that section and any law or legal principle of similar effect in any jurisdiction with respect to Consultant’s release of claims herein, including but not limited to the release of unknown and unsuspected claims.

 

IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the Effective Date as provided herein.

 

	
ALEXANDRIA   REAL ESTATE EQUITIES, INC.
    	
 
    	
JAMES   H. RICHARDSON
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Joel S. Marcus
    	
 
    	
/s/   James H. Richardson
    
	
 
    	
Joel   S. Marcus, Chief Executive Officer
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
September   30, 2011
    	
 
    	
Date:
    	
September   29, 2011
    
									

 

8

 

EXHIBIT A

PROJECT ASSIGNMENT

UNDER AMENDED AND RESTATED CONSULTING AGREEMENT

 

Effective:  January 1, 2011

 

NATURE OF WORK:

 

Consultant shall provide consulting services (the “Services”) in any area of his expertise or work experience, including but not limited to real estate operations, regional strategies, and such other matters as may be requested by Client’s Chief Executive Officer (the “CEO”) or his designee.  Consultant shall report to the CEO.  The Services shall not exceed thirty-two (32) hours per month without Consultant’s consent.  Consultant shall also make himself available to cooperate with Client on any contemplated defense, prosecution, or investigation of claims involving third parties arising from events during Consultant’s employment with Client, including (without limitation) making himself available upon reasonable notice, without subpoena, to provide truthful and accurate information in interviews, deposition or trial testimony.  Consultant will receive no consulting fees for any cooperation provided pursuant to the preceding sentence, but will be eligible for reimbursement of expenses incurred as a direct result of his requested cooperation.

 

CONSULTING FEES, REIMBURSEMENTS, AND EQUIPMENT:

 

A.                                 Fees and Invoices.  During the Term, Client shall pay to Consultant consulting fees in the amount of $250 per hour (prorated for any partial hours) for authorized Services rendered by Consultant.  Consultant shall invoice Client within fifteen (15) days after the close of each month.  Such invoices shall list the dates covered by the invoice and provide a summary description of the Services performed by Consultant.  Client shall pay such invoices within ten (10) business days after the beginning of the following month (e.g., Consultant performs Services in March; Consultant invoices Client for such Services in April; Client pays invoice for such Services in May).

 

B.                                 Quarterly Consulting Payments.  In addition to the hourly consulting fees provided in Paragraph A (Fees and Invoices) hereof, during the Term, Client shall pay to Consultant a fixed quarterly cash consulting payment of $25,000, within ten (10) business days after the beginning of the following quarter, provided that such payment shall only be due and owing if this Agreement has not been terminated by Client due to material breach by Consultant, or terminated by Consultant for convenience (i.e., in the absence of material breach by Client), prior to the end of the applicable quarter.

 

C.                                 Restricted Stock Grants.  Subject to the approval of the Compensation Committee (the “Compensation Committee”) of Client’s Board of Directors (the “Board”), Consultant shall receive a restricted stock grant (the “Initial Grant”) on September 1, 2011 or as soon thereafter as such approval is obtained, in the amount of 1,250 shares of restricted common stock of Client, of which one third of such shares will vest (subject to Consultant’s continuous service) on each of the following dates:  September 1, 2012, September 1, 2013, and September 1, 2014.  In addition, subject to Compensation Committee approval, Consultant shall receive a year-end restricted stock grant (the “Year-End Grant”) on December 31, 2011 or as soon thereafter as such approval is obtained, in the amount of 1,250 shares of restricted common stock of Client, of which one third of such shares will vest (subject to Consultant’s continuous service) on each December 31 anniversary thereafter over a three (3) year period; and additional such Year-End Grants shall be made (subject to Consultant’s continuous service) each December 31 thereafter (or as soon thereafter as Compensation Committee approval is obtained), with the same three year vesting timetable.  In the event that the Agreement terminates for any reason, the vesting of all stock grants shall cease, and any shares of restricted stock that are issued but unvested as of such termination date (the “Unvested Restricted Stock”) will be forfeited to Client, provided however, that if Client terminates this Agreement for any reason other than Consultant’s material breach of this Agreement, vesting of the Unvested Restricted Stock, with respect to the next scheduled vesting date for each grant, shall be accelerated so that Unvested Restricted Stock will be vested pro rata effective as of

 

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the termination date of this Agreement (based on the number of completed calendar months of consulting service during the year of termination, measured from September 1 in the case of the Initial Grant and measured from December 31 in the case of any Year-End Grants, divided by twelve (12)).  By way of example, in the event that Client terminates the Agreement effective as of October 1, 2012, other than due to Consultant’s material breach of this Agreement, then the only prorated accelerated vesting that Consultant will receive would be vesting of 1/12th of the annual vesting amount of the Initial Grant (e.g., one additional month of vesting), and 9/12th of the annual vesting amount of the first Year-End Grant, which would have been granted on or about December 31, 2011 (e.g., nine additional months of vesting).  Notwithstanding the foregoing, as a precondition to any such accelerated vesting of the Unvested Restricted Stock, Consultant must, within fourteen (14) days following such termination date, sign, date, return to Client, and allow to become effective a general release of all known and unknown claims in a form satisfactory to Client.  The Initial Grant and Year-End Grants shall be governed in all respects by the terms of the applicable restricted stock agreements, grant notice and plan documents, except as may be specifically provided in this Agreement.

 

D.                                 Heath Insurance Premiums.  Pursuant to Consultant’s timely election, under the federal COBRA law or applicable state insurance laws (collectively, “COBRA”), to continue his current health insurance coverage under Client’s group health plan, Client will reimburse Consultant’s health insurance premiums (including the cost of dependent coverage, if applicable) for the maximum period for which Consultant is eligible for such continued health coverage under the federal COBRA law or applicable California statutes, provided however, that Client’s obligation to reimburse Consultant’s health insurance premiums will cease on the date that Consultant becomes eligible for group health insurance coverage through a new employer.  Consultant must provide prompt written notice to Client if he becomes eligible for group health insurance coverage through a new employer during the time that Client is reimbursing his group health insurance coverage.  Notwithstanding the foregoing, if Client determines, in its sole discretion, that it cannot reimburse Consultant’s COBRA premiums without a substantial risk of violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), Client instead shall provide Consultant taxable monthly payments in an amount grossed-up so that the after-tax value of the payment is equal to the amount of the monthly COBRA premium that Consultant will be required to pay to continue group health coverage including coverage for any covered dependents (which amount shall be based on the premium for the month of COBRA coverage immediately before Client makes its determination that it cannot continue to reimburse such COBRA premiums), and such monthly payments shall be made for as long as Client would otherwise have reimbursed Consultant’s COBRA premiums under this paragraph.

 

E.                                  Expense Reimbursement.  Client will reimburse Consultant for reasonable, direct expenses incurred as a result of providing Services to Client, including but not limited to travel and communications expenses, under the following guidelines:

 

1.                                    Outside services at cost.

2.                                    Direct charges at cost.

3.                                    Travel and subsistence at cost.

 

All individual expenses which will exceed $500 must be approved in advance by Client in writing, unless they fall within expense guidelines which have been approved by Client.  The expenses shall be invoiced to Client on a monthly basis as provided above for invoice of Consultant’s consulting fees, including copies of receipts or other supporting documentation.

 

A-2

 

F.                                   Equipment.  Client shall not provide Consultant with any equipment unless separately agreed to in a writing signed by the CEO.

 

	
UNDERSTOOD   AND AGREED:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ALEXANDRIA   REAL ESTATE EQUITIES, INC.
    	
 
    	
JAMES   H. RICHARDSON
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Joel   S. Marcus, Chief Executive Officer
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    
						

 

A-3

 

EXHIBIT B

 

ASSIGNMENT OF COPYRIGHT

 

For good and valuable consideration which has been received, the undersigned sells, assigns and transfers to Client and its successors and assigns, the copyright in and to the following work, which was created by the following indicated author(s):

 

	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Author(s):
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Copyright Office   Identification No. (if any):
    	
 
    	
 
    
					

 

and all of the right, title and interest of the undersigned, vested and contingent, therein and thereto.

 

Executed this                    day of                                         , 20      .

 

 

 

	
 
    	
Signature:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Printed Name:
    	
 
    
				

 

B-1

 

EXHIBIT C

 

SYSTEMS USAGE POLICY FOR EXTERNAL USERS

 

C-1Exhibit 10.2

 

THIRD AMENDED AND RESTATED

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This THIRD AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”), made between Alexandria Real Estate Equities, Inc. (the “Company”) and Stephen A. Richardson (“Employee”), amends and restates in its entirety the Second Amended and Restated Executive Employment Agreement between the Company and Employee that was effective as of January 1, 2011 (the “Second Amended Agreement”).  This Agreement is effective as of October 25, 2011 (the “Effective Date”).

 

RECITALS

 

WHEREAS, Employee is currently employed by the Company as its Executive Vice President/Regional Market Director – San Francisco Bay, pursuant to the Second Amended Agreement; and

 

WHEREAS, the Company desires to employ Employee as its Chief Operating Officer and Regional Market Director – San Francisco, and Employee is willing to continue employment by the Company in such position, on the amended and restated terms and subject to the conditions set forth in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises and subject to the terms and conditions set forth herein, the parties hereto agree as follows:

 

SECTION 1.   POSITION; DUTIES; LOCATION.

 

Employee agrees to continue to be employed by the Company and to serve in the position of its Chief Operating Officer and Regional Market Director – San Francisco, and the Company agrees to employ Employee in such capacity.  Employee shall continue to report to the Company’s Chief Executive Officer (the “CEO”), and Employee shall perform the responsibilities and duties as determined from time to time by the CEO.  In addition, Employee agrees to serve in such capacities for the Company’s subsidiaries, and in such additional or different capacities consistent with Employee’s current position as a senior executive of the Company, as may be determined by the Board of Directors of the Company (the “Board”).  Employee shall devote such of Employee’s business time, energy, and skill to the affairs of the Company and its subsidiaries as shall be necessary to perform the duties of such positions.  Notwithstanding the foregoing, and subject to any written policies of the Company, nothing in this Agreement shall preclude Employee from:  (i) engaging in charitable and community affairs and not-for-profit activities, so long as they are consistent with Employee’s duties and responsibilities under this Agreement; (ii) managing Employee’s personal investments; (iii) serving on the boards of directors of non-profit companies; and (iv) serving on the boards of directors of other for-profit companies; provided, however, that, prior to accepting a position on any such for-profit board of directors, Employee shall obtain the approval of the Board (or, if 

 

1

 

applicable, the appropriate committee thereof), which shall be provided or withheld within the Board’s sole discretion; and provided, further, however, that Employee shall submit to the Board (or the appropriate committee thereof) a list of any for-profit boards of directors on which Employee is serving as of the Effective Date of this Agreement.  Employee shall be based in the San Francisco Bay Area, except for required travel on the Company’s business.  Notwithstanding the foregoing, the Company retains the sole discretion to change Employee’s title, reporting relationship, duties and assigned office location (provided, however, that certain changes by the Company without Employee’s express written consent could give rise to grounds for a “Good Reason” resignation and receipt of compensation and benefits as provided in Section 3.4 and Section 3.7 herein).

 

SECTION 2.   COMPENSATION AND OTHER BENEFITS.

 

In consideration of Employee’s employment, and except as otherwise provided herein, Employee shall receive from the Company the compensation and benefits described in this Section 2.  Employee authorizes the Company to deduct and withhold from all compensation to be paid to Employee any and all sums required to be deducted or withheld by the Company pursuant to the provisions of any federal, state, or local law, regulation, ruling, or ordinance, including, but not limited to, income tax withholding and payroll taxes.

 

2.1       Base Salary.  Subject to the terms and conditions set forth herein, the Company agrees to pay Employee a base salary at the rate of three hundred sixty thousand dollars ($360,000) per year, less standard payroll deductions and withholdings, payable on the Company’s regular payroll schedule (the “Base Salary”). Employee’s Base Salary shall be reviewed no less frequently than annually by the Board (or such committee as may be appointed by the Board for such purpose) on or before September 30 each year.  The Base Salary payable to Employee shall be increased as of January 1 each year , by action taken no later than September 30 of such year, and at such additional times as the Board or a committee of the Board may deem appropriate, to an amount determined by the Board (or a committee of the Board).  Each such new Base Salary shall become the base for each successive annual increase; provided, however, that such increase, at a minimum, shall be equal to the cumulative cost-of-living increment as reported in the “Consumer Price Index, San Francisco, California, All Items,” published by the U.S. Department of Labor (using January 1, 2006 as the base date for comparison). Any increase in Base Salary or other compensation shall in no way limit or reduce any other obligations of the Company hereunder and, once established at an increased specified rate, Employee’s Base Salary shall not be reduced unless Employee otherwise agrees in writing.

 

2.2       Annual Bonus.  Employee shall be eligible to receive a bonus for each calendar year of employment with the Company (each a “Bonus Year”), in an amount to be determined in the sole discretion of the Board (or a committee of the Board) based upon its evaluation of Employee’s performance and the performance of the Company during such year and such other factors and conditions as the Board (or a committee of the Board) deems relevant.   Bonuses are not guaranteed, and the Board may determine that Employee has not earned a bonus for any Bonus Year.  Any earned bonus shall be payable within 185 days after the end of the relevant Bonus Year or as soon thereafter as reasonably practicable, but in no 

 

2

 

event after the end of the year following the relevant Bonus Year; provided, however, that in the event Employee terminates employment with the Company for any reason other than a termination by the Company for Cause (as defined herein), after the end of the Bonus Year and prior to the date when such bonuses are paid by the Company to senior executives, then Employee shall receive the same cash bonus (not including any restricted stock grant shares) that would have been awarded to Employee in the absence of such termination and it shall be paid to Employee at the same time that cash bonuses are paid by the Company to other senior executives.

 

2.3       New Restricted Stock Grant; Options.  Subject to approval of the Compensation Committee of the Board (the “Compensation Committee”), Employee shall receive a new restricted stock grant (the “Grant”) in connection with his election to the position of Chief Operating Officer, to be issued as of the Effective Date or as soon thereafter as approval of the Compensation Committee is obtained, in the amount of 15,000 shares of restricted stock, of which one third of the stock will vest (subject to Employee’s continuous service) on each anniversary of the Effective Date over a three (3) year period, with the first such vesting date to take place on the first anniversary of the Effective Date.  Thereafter, Employee shall be eligible for additional equity awards from time to time as shall be determined by the Compensation Committee in its sole discretion, and subject to such vesting, exercisability, and other provisions as the Compensation Committee may determine in its discretion, after reviewing the performance of both Employee and the Company.  The Grant and all other equity awards (if any) shall be governed in all respects by the terms of the applicable stock option or restricted stock agreements, grant notice and plan documents, except as specifically provided in Sections 3.4(b), 3.5 and 3.7(b) hereof.  Notwithstanding anything in this Agreement to the contrary, upon a Change in Control (as defined herein), any outstanding equity awards held by Employee (whether in the form of stock options or shares of restricted stock) shall become fully vested.

 

2.4       Vacation.  Employee shall be entitled to accrue and use paid vacation in accordance with the terms of the Company’s vacation policy and practices, provided, however, that in no event will Employee’s vacation accrual rate be lower than three (3) weeks per year.

 

2.5       Other Benefits.  Employee shall be eligible to participate in such of the Company’s benefit and deferred compensation plans as may be made available to executive officers of the Company, including, without limitation, the Company’s stock incentive plans, annual incentive compensation plans, profit sharing/pension plans, deferred compensation plans, annual physical examinations, dental plans, vision plans, sick pay, medical plans, personal catastrophe and accidental death insurance plans, financial planning, automobile arrangements, retirement plans and supplementary executive retirement plans, if any.  For purposes of establishing the length of service under any benefit plans or programs of the Company, such service shall be deemed to have commenced on February 15, 2000, which was Employee’s first date of employment with the Company.

 

2.6       Reimbursement For Expenses.  The Company shall reimburse Employee for all reasonable out-of-pocket business expenses (including, but not limited to, business entertainment expenses) incurred by Employee for the purpose of and in connection with the 

 

3

 

performance of Employee’s services pursuant to this Agreement.  Employee shall be entitled to such reimbursement upon the presentation by Employee to the Company of vouchers or other statements itemizing such expenses in reasonable detail consistent with the Company’s policies.  In addition, Employee shall be entitled to reimbursement for: (i) dues and membership fees in professional organizations and industry associations in which Employee is currently a member or becomes a member; and (ii) appropriate industry seminars and mandatory continuing education.  The amount of expenses eligible for reimbursement pursuant to this Section 2.6 during a calendar year shall not affect the amount of expenses eligible for reimbursement in any other calendar year. Without extending the time of payment that would apply in the absence of this sentence, the Company shall reimburse Employee for any expense eligible for reimbursement pursuant to this Section 2.6 in accordance with the Company’s applicable expense reimbursement policies and procedures and on or before the end of the calendar year following the calendar year in which the expense was incurred.

 

SECTION 3.   TERMINATION; SEVERANCE.

 

3.1       Term and Termination.  The term of this Agreement (“Term”) shall be the period commencing on the Effective Date and ending on the date that this Agreement is terminated by either party pursuant to the provisions of this Agreement. Employee is employed at-will, meaning that, subject to the terms and conditions set forth herein, either the Company or Employee may terminate Employee’s employment at any time, with or without Cause.

 

3.2       Compensation Upon Termination.  Upon the termination of Employee’s employment for any reason, the Company shall pay Employee all of Employee’s accrued and unused vacation and unpaid Base Salary earned through Employee’s last day of employment (the “Separation Date”).  In addition, Employee will receive reimbursement of business expenses as provided under Section 2.6, and any bonus owed under Section 2.2 shall be paid in accordance with the terms of Section 2.2.

 

3.3       Termination For Cause.  At any time, the Company shall be entitled to terminate this Agreement for Cause by written notice to Employee provided in accordance with Section 3.10(b), which notice shall specify the reason for and the effective date of such termination.  In that event, the Company shall pay Employee the compensation set forth in Section 3.2, and Employee shall not be entitled to any further compensation from the Company, including severance benefits.

 

3.4       Termination Without Cause Or Resignation For Good Reason Not In Connection With A Change In Control.  The Company shall be entitled to terminate Employee’s employment without Cause immediately upon written notice to Employee, and Employee shall be entitled to terminate this Agreement for Good Reason in accordance with Section 3.10(c).  In either event, and provided that Employee is not eligible for severance benefits under Section 3.7 (Termination Without Cause or Resignation For Good Reason In Connection With A Change In Control), Employee shall receive the following severance benefits:

 

4

 

(a)        Salary Continuation.  The Company shall pay Employee severance in an amount equal to one (1) year of Base Salary, less standard payroll deductions and withholdings, and paid in accordance with Section 3.9.  The Company’s obligation to provide, or continue to provide, such severance payments will cease immediately and in full in the event that Employee materially breaches any of Employee’s continuing obligations to the Company (including, but not limited to, any continuing obligations under this Agreement or the Proprietary Information Agreement (as defined herein)).

 

(b)        Accelerated Vesting.  To the extent not previously accelerated pursuant to Section 2.3, the Company shall accelerate the vesting of any equity awards previously granted to Employee by the Company (whether in the form of stock options or shares of restricted stock) such that all of the unvested shares shall be deemed vested as of the Separation Date.

 

(c)        Bonus.  The Company shall pay Employee a cash bonus for the year in which the Separation Date occurs in the amount of the cash bonus that Employee earned for the previous year, if any, or if such amount has not been determined at the time of termination, for the year prior to the previous year (provided, however, that if termination is on or after a Change in Control, and Section 3.7 does not apply, the amount shall in no event be lower than the highest actual cash bonus amount received by Employee for the two (2) calendar years preceding the calendar year in which the Change in Control occurs).  For the avoidance of doubt, the calculation of such cash bonus shall not include any restricted stock grants, or shares of stock, or the value of such grants or stock, which may have been provided to Employee at any time.

 

(d)        Restricted Stock Grants.

 

(i)         Prior Year Stock Grant.  The Company shall grant to Employee, fully vested, a restricted stock grant (the “Prior Year Grant”) for the Company’s fiscal year prior to the fiscal year in which the Separation Date occurs (such year to be referred to as the “Prior Year”) in the amount that is the greater of the following:  (A) any annual performance-based grants for Employee of restricted stock that may have already then been determined by the Compensation Committee for the Prior Year but which have not yet been made to Employee as of the Separation Date; and (B) the average of the amounts of any such grants that Employee received for the second, third, and fourth fiscal years prior to the fiscal year in which the Separation Date occurs.  In the event that, as of the Separation Date, Employee has already received a restricted stock grant for the Prior Year (the “Actual Prior Year Grant”), then the Prior Year Grant calculated pursuant to the prior sentence shall be reduced (but not to below zero) by the number of shares previously received by the Employee pursuant to such Actual Prior Year Grant, including shares included in the Actual Prior Year Grant that may become vested as a result of the Employee’s termination of employment.

 

(ii)        Separation Year Stock Grant.  The Company shall grant to Employee, fully vested, a restricted stock grant (the “Separation Year Grant”) for the Company’s fiscal year in which the Separation Date occurs (the “Separation Year”) in the 

 

5

 

amount that is calculated as follows:  (A) the number of shares of the Prior Year Grant (calculated pursuant to Section 3.4(d)(i), but without any reduction to account for an Actual Prior Year Grant); multiplied by (B) a fraction with a numerator equal to the number of calendar days that Employee was employed by the Company during the Separation Year, and a denominator equal to 365 (or 366, if the Separation Year is a calendar leap year).

 

(e)        Continued Health Benefits.  If Employee timely elects to continue coverage under the Company’s health insurance plans in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) or any analogous provisions of state law, the Company shall pay the applicable premiums for such continued coverage throughout the twelve (12)-month period following the Separation Date; provided, however, that (i) the Company shall not be required to make any such payments after such time as Employee becomes entitled to receive similar health insurance coverage from another employer or recipient of Employee’s services (and Employee shall promptly notify the Company of any such fact), and (ii) any applicable premiums that are paid by the Company shall not include any amounts payable by Employee under an Internal Revenue Code Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of Employee. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay Employee’s COBRA premiums without a substantial risk of violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company instead shall provide Employee taxable monthly payments in an amount that is calculated as (A) the amount of the monthly COBRA premium that Employee would be required to pay to continue Employee’s group health coverage including coverage for any covered dependents (which amount shall be based on the premium for the first month of COBRA coverage immediately following the month in which Employee’s employment with the Company terminates), plus (B) an additional amount equal to the tax withholdings taken from the monthly payment (so that the after-tax value of the payment is equal to the monthly COBRA premium amount under (A)), and such monthly payments shall be made through the earlier of (i) twelve (12) months from the employment termination date, or (ii) such date as Employee becomes eligible to receive similar health insurance coverage from another employer or recipient of Employee’s services (and Employee shall promptly notify the Company of any such eligibility).

 

3.5       Termination Upon Death Or Disability.  The Agreement shall terminate immediately upon Employee’s death or Disability (as defined herein).  In that event, the Company shall provide Employee (or, in the event of Employee’s death, Employee’s designated beneficiaries or, if Employee has none, Employee’s estate) with the compensation set forth in Section 3.2, as well as the severance benefits set forth in Section 3.4.

 

3.6       Resignation.  Employee shall be entitled to resign at any time upon written notice to the Company thirty (30) days prior to the effective date of such resignation, which shall be specified in Employee’s notice of resignation.  Unless Employee’s resignation is for Good Reason, upon Employee’s resignation, the Company shall pay Employee the compensation set forth in Section 3.2, and Employee shall not be entitled to any further compensation from the Company, including severance benefits.

 

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3.7       Termination Without Cause Or Resignation For Good Reason In Connection With A Change In Control.  Upon or within two (2) years following a Change in Control, the Company shall be entitled to terminate Employee’s employment without Cause immediately upon written notice to Employee, and Employee shall be entitled to terminate this Agreement for Good Reason in accordance with Section 3.10(c).  In either event, Employee shall receive the following severance benefits:

 

(a)        Salary Continuation.  The Company shall pay Employee severance in an amount equal to two (2) years of Base Salary, less standard payroll deductions and withholdings, and paid in accordance with Section 3.9.  The Company’s obligation to provide, or continue to provide, such severance payments will cease immediately and in full in the event that Employee materially breaches any of Employee’s continuing obligations to the Company (including, but not limited to, any continuing obligations under this Agreement or the Proprietary Information Agreement).

 

(b)        Accelerated Vesting.  To the extent not previously accelerated pursuant to Section 2.3, the Company shall accelerate the vesting of any equity awards previously granted to Employee by the Company (whether in the form of stock options or shares of restricted stock) such that all of the unvested shares shall be deemed vested as of the Separation Date.

 

(c)        Bonus.  The Company shall pay Employee a cash bonus for the year in which the Separation Date occurs in an amount equal to two (2) times the amount of the cash bonus that Employee earned for the previous year, if any, or, if such amount has not been determined at the time of termination, two (2) times the amount for the year prior to the previous year (provided, however, that the amount shall in no event be lower than two (2) times the highest actual cash bonus amount received by Employee for the two (2) calendar years preceding the calendar year in which the Change in Control occurs).  For the avoidance of doubt, the calculation of such cash bonus shall not include any restricted stock grants, or shares of stock, or the value of such grants or stock, which may have been provided to Employee at any time.

 

(d)        Restricted Stock Grants.

 

(i)         Prior Year Stock Grant.  The Company shall grant to Employee, fully vested, a restricted stock grant (the “Prior Year Grant”) for the Company’s fiscal year prior to the fiscal year in which the Separation Date occurs (such year to be referred to as the “Prior Year”) in the amount that is the greater of the following:  (A) any annual performance-based grants for Employee of restricted stock that may have already then been determined by the Compensation Committee for the Prior Year but which have not yet been made to Employee as of the Separation Date; and (B) the average of the amounts of any such grants that Employee received for the second, third, and fourth fiscal years prior to the fiscal year in which the Separation Date occurs.  In the event that, as of the Separation Date, Employee has already received a restricted stock grant for the Prior Year (the “Actual Prior Year Grant”), then the Prior Year Grant calculated pursuant to the prior sentence shall be reduced (but not below zero) by the number of shares previously received by the Employee pursuant to such 

 

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Actual Prior Year Grant, including shares included in the Actual Prior Year Grant that may become vested as a result of the Employee’s termination of employment.

 

(ii)        Separation Year Stock Grant.  The Company shall grant to Employee, fully vested, a restricted stock grant (the “Separation Year Grant”) for the Company’s fiscal year in which the Separation Date occurs (the “Separation Year”) in the amount that is calculated as follows:  (A) the number of shares of the Prior Year Grant (calculated pursuant to Section 3.4(d)(i), but without any reduction to account for an Actual Prior Year Grant); multiplied by (B) a fraction with a numerator equal to the number of calendar days that Employee was employed by the Company during the Separation Year, and a denominator equal to 365 (or 366, if the Separation Year is a calendar leap year).

 

(e)        Continued Health Benefits.  If Employee timely elects to continue Employee’s coverage under the Company’s health insurance plans in accordance with COBRA or any analogous provisions of state law, the Company shall pay the applicable premiums for such continued coverage throughout the twelve (12)-month period following the Separation Date; provided, however, that (i) the Company shall not be required to make any such payments after such time as Employee becomes entitled to receive similar health insurance coverage from another employer or recipient of Employee’s services (and Employee shall promptly notify the Company of any such fact), and (ii) any applicable premiums that are paid by the Company shall not include any amounts payable by Employee under an Internal Revenue Code Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of Employee.  Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay Employee’s COBRA premiums without a substantial risk of violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company instead shall provide Employee taxable monthly payments in an amount that is calculated as (A) the amount of the monthly COBRA premium that Employee would be required to pay to continue Employee’s group health coverage including coverage for any covered dependents (which amount shall be based on the premium for the first month of COBRA coverage immediately following the month in which Employee’s employment with the Company terminates), plus (B) an additional amount equal to the tax withholdings taken from the monthly payment (so that the after-tax value of the payment is equal to the monthly COBRA premium amount under (A)), and such monthly payments shall be made through the earlier of (i) twelve (12) months from the employment termination date, or (ii) such date as Employee becomes eligible to receive similar health insurance coverage from another employer or recipient of Employee’s services (and Employee shall promptly notify the Company of any such eligibility).

 

3.8       Release.  As a condition to receipt of any accelerated vesting or severance benefits under this Agreement, Employee (or, in the event of Employee’s death, Employee’s designated beneficiaries or, if Employee has none, Employee’s estate) shall be required to provide the Company with an effective general release of any and all known and unknown claims against the Company and other specifically identified released parties, substantially in the form attached hereto as Exhibit A (the “Release”), within the applicable time period set forth in the specific form of Release provided to Employee by the Company, but in no event more than sixty (60) days following the Separation Date.

 

8

 

3.9       Payment Of Severance Benefits; Section 409A.  In the event that Employee is entitled to any severance benefits pursuant to Sections 3.4, 3.5 or 3.7 of this Agreement (other than any accelerated vesting under Sections 3.4(b), 3.5 or 3.7(b)), such severance benefits shall be payable as follows: (1) (i) any payment of Base Salary pursuant to Sections 3.4(a) or 3.5, shall be made in the form of substantially equal installments for a period of one (1) year following the Separation Date, and (ii) any payment of Base Salary pursuant to Section 3.7(a), shall be made in the form of substantially equal installments for a period of two (2) years following the Separation Date, provided, however, that any payments delayed pending the effective date of the Release shall be paid in arrears no later than ten (10) days after such effective date; (2) any payment of bonus pursuant to Sections 3.4(c), 3.5, or 3.7(c), shall be made in the form of a lump sum within ten (10) days following the effective date of the Release; and (3) any restricted stock grants pursuant to Sections 3.4(d), 3.5, or 3.7(d), shall be made in full within thirty (30) days following the effective date of the Release; provided, however, that:

 

(a)        Payment of such amounts and any other amounts or benefits provided under this Agreement in connection with Employee’s termination of employment that constitute “deferred compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986 as amended (the “Code”), and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”), shall not commence in connection with Employee’s termination of employment unless and until Employee has also incurred a “separation from service” (as such term is defined in Treasury Regulations Section 1.409A-1(h) (“Separation From Service”)), unless the Company reasonably determines that such amounts and benefits may be provided to Employee without causing Employee to incur the adverse personal tax consequences under Section 409A; and

 

(b)        It is intended that (i) each installment of any amounts or benefits payable under this Agreement be regarded as a separate “payment” for purposes of Treasury Regulations Section 1.409A-2(b)(2)(i) (and each such installment is hereby designated as separate for such purpose); (ii) all payments of any such amounts or benefits satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4) and 1.409A-1(b)(9)(iii); and (iii) any such amounts or benefits consisting of premiums payable under COBRA also satisfy, to the greatest extent possible, the exemption from the application of Section 409A provided under Treasury Regulations Section 1.409A-1(b)(9)(v). However, if any such amounts or benefits constitute “deferred compensation” under Section 409A and Employee is a “specified employee” of the Company, as such term is defined in Section 409A(a)(2)(B)(i), then solely to the extent necessary to avoid the imposition of the adverse personal tax consequences under Section 409A, the timing of such benefit payments shall be delayed as follows, provided that the Release has become effective in accordance with its terms: on the earlier to occur of (a) the date that is six (6) months and one (1) day after Employee’s Separation From Service, and (b) the date of Employee’s death (such applicable date, the “Delayed Initial Payment Date”), the Company shall (1) pay Employee a lump sum amount equal to the sum of the benefit payments that Employee would otherwise have received through the Delayed Initial Payment Date if the commencement of the payment of the benefits had not been delayed pursuant to this Section

 

9

 

3.9(b), and (2) commence paying the balance, if any, of the benefits in accordance with the applicable payment schedule.

 

3.10     Definitions.  For purposes of this Agreement, the following definitions shall apply:

 

(a)        Disability.  The term “Disability” shall mean a physical or mental disability that renders Employee unable to perform one or more of the essential functions of Employee’s job, as determined by two (2) licensed physicians selected jointly by the Board and Employee, for a period of 180 days during any 365 day period.

 

(b)        Cause.  For purposes of this Agreement, “Cause” shall mean: (1) Employee’s conviction of any felony involving moral turpitude, fraud or dishonesty; (2) Employee’s persistent, willful and unsatisfactory performance of job duties (but only as to a termination before a Change in Control); (3) Employee’s material and willful violation or breach of any material written Company policy (as in effect prior to a Change in Control) of which Employee has been provided notice or material statutory or fiduciary duty to the Company; or (4) Employee’s material and willful violation or breach of this Agreement or the Proprietary Information Agreement; provided that in the event that the Cause described above is reasonably susceptible of being cured, the Company shall provide written notice to Employee describing the nature of such Cause and Employee shall thereafter have thirty (30) days to cure and if cured by Employee within such thirty (30) day period, such event shall not provide Cause for termination by the Company.

 

(c)        Good Reason.  For purposes of this Agreement, “Good Reason” shall mean, without Employee’s express written consent, the occurrence of any of the following circumstances:  (1) the assignment to Employee of any duties inconsistent with the position in the Company that Employee held immediately prior, or an adverse alteration in the nature or status of Employee’s responsibilities from those in effect immediately prior to such change; (2) a reduction by the Company in Employee’s annual base salary as in effect on the date hereof or as the same may be increased from time to time (provided, however, that a reduction in base salary imposed prior to a Change in Control in connection with an across-the-board reduction of base salaries of the Company’s Executive Vice Presidents, Senior Vice Presidents, and other similarly situated employees, shall not provide grounds for Good Reason); (3) the relocation of Employee’s offices to a location outside the San Francisco Bay Area, or requiring Employee to travel on Company business to an extent not substantially consistent with Employee’s previous business travel obligations; (4) the failure by the Company to pay Employee any portion of Employee’s current compensation except pursuant to an across-the-board compensation deferral similarly affecting all the employees of the Company (and all the employees of any entity whose actions resulted in a Change in Control, if such compensation deferral occurs after a Change in Control), or to pay Employee any portion of an installment of deferred compensation under any deferred compensation program of the Company, in each case within seven (7) days of the date such compensation is due; (5) the failure by the Company to continue in effect any compensation plan in which Employee participates which is material to Employee’s total compensation, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made 

 

10

 

with respect to such plan, or the failure by the Company to continue Employee’s participation therein (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of participation relative to other participants, as existed previously; (6) the failure by the Company to continue to provide Employee with benefits substantially similar to those benefits provided to Employee under any of the Company’s directors and officers liability insurance, life insurance, medical, health and accident, or disability plans in which Employee was participating previously (provided, however, that a modification of any such benefits prior to a Change in Control which impacts the Company’s Executive Vice Presidents, Senior Vice Presidents, and other similarly situated employees, in the same or a substantially similar manner as Employee shall not provide grounds for Good Reason), or the failure by the Company to provide Employee with substantially the same number of paid vacation days to which Employee is entitled in accordance with the Company’s normal vacation policy in effect at such time; or (7) the failure of the Company to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement.  In order to terminate this Agreement for Good Reason, Employee must provide advance written notice to the Company of the occurrence of one or more of the foregoing circumstances; provided, however, that the Company shall not be required to provide any benefits under Section 3.4 or Section 3.7 if it is able to remedy and does remedy such circumstance within a period of thirty (30) days following such notice.

 

(d)        Change in Control.  A “Change in Control” shall be deemed to have occurred if:

 

(i)         any Person (as such term is used in section 3(a)(9) of the Securities Exchange Act of 1934, as amended from time to time (the “Exchange Act”), as modified and used in sections 13(d) and 14(d) thereof, except that such term shall not include (A) the Company or any of its subsidiaries, (B) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its affiliates, (C) an underwriter temporarily holding securities pursuant to an offering of such securities, or (D) a Company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company) becomes the Beneficial Owner (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its affiliates other than in connection with the acquisition by the Company or its affiliates of a business) representing twenty-five percent (25%) or more of the combined voting power of the Company’s then outstanding securities; or

 

(ii)        the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who 

 

11

 

either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or

 

(iii)       there is consummated a merger or consolidation of the Company with any other Company, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any subsidiary of the Company, at least seventy-five percent (75%) of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation; or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its affiliates other than in connection with the acquisition by the Company or its affiliates of a business) representing twenty-five percent (25%) or more of the combined voting power of the Company’s then outstanding securities; or

 

(iv)       the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least seventy-five (75%) of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

 

3.11     No Offset.  Employee shall not be required to mitigate damages under this Agreement by seeking other comparable employment or otherwise, nor shall Employee’s entitlement to any severance benefit hereunder be offset by any earned income Employee may receive from employment or consulting with a third party after Employee’s employment with the Company.

 

SECTION 4.   PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT.

 

Employee shall be required to continue compliance with Employee’s obligations under the Employee Proprietary Information and Inventions Agreement with the Company that Employee previously executed (the “Proprietary Information Agreement”), a copy of which is attached as Exhibit B.

 

SECTION 5.   COMPANY POLICIES.

 

Employee shall be required to continue compliance with the Company’s employee policies and procedures established by the Company from time to time.

 

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SECTION 6.   ASSIGNABILITY.

 

This Agreement is binding upon and inures to the benefit of the parties and their respective heirs, executors, administrators, personal representatives, successors and assigns.  The Company may assign its rights or delegate its duties under this Agreement at any time and from time to time.  However, the parties acknowledge that the availability of Employee to perform services and the covenants provided by Employee hereunder are personal to Employee and have been a material consideration for the Company to enter into this Agreement. Accordingly, Employee may not assign any of Employee’s rights or delegate any of Employee’s duties under this Agreement, either voluntarily or by operation of law, without the prior written consent of the Company, which may be given or withheld by the Company in its sole and absolute discretion.

 

SECTION 7.   NOTICES.

 

All notices and other communications under this Agreement shall be in writing and shall be given by facsimile, first class mail (certified or registered with return receipt requested), or Federal Express overnight delivery, and shall be deemed to have been duly given three days after mailing or twenty-four (24) hours after transmission of a facsimile or Federal Express overnight delivery (if the receipt of the facsimile or Federal Express overnight delivery is confirmed) to the respective persons named below:

 

	
 
    	
If to the Company:
    	
Alexandria Real Estate   Equities, Inc.
    
	
 
    	
 
    	
385 E. Colorado   Boulevard, Suite 299
    
	
 
    	
 
    	
Pasadena,   CA  91101
    
	
 
    	
 
    	
Telephone:  (626)   578-0777
    
	
 
    	
 
    	
 
    
	
 
    	
If to Employee:
    	
Stephen A. Richardson
    
	
 
    	
 
    	
c/o Alexandria Real   Estate Equities, Inc.
    
	
 
    	
 
    	
1700 Owens Street
    
	
 
    	
 
    	
Suite 590
    
	
 
    	
 
    	
San Francisco, CA 94158
    

 

Any Party may change such Party’s address for notices by notice duly given pursuant hereto.

 

SECTION 8.   ARBITRATION.

 

To ensure the timely and economical resolution of disputes that may arise in connection with Employee’s employment with the Company, Employee and the Company agree that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance, negotiation, execution, or interpretation of this Agreement, Employee’s employment, or the termination of Employee’s employment, including but not limited to statutory claims, shall be resolved to the fullest extent permitted by law by final, binding and confidential arbitration, by a single arbitrator, in Los Angeles, California, conducted by JAMS, Inc. (“JAMS”) under the then applicable JAMS rules.  By agreeing to this arbitration procedure, both Employee and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding.  The Company acknowledges that Employee will have the right to be represented by legal counsel at any arbitration proceeding.  The arbitrator shall:  (a) have the authority to compel adequate 

 

13

 

discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award.  The arbitrator shall be authorized to award any or all remedies that Employee or the Company would be entitled to seek in a court of law.  The Company shall pay all JAMS’ arbitration fees in excess of the amount of court fees that would be required of Employee if the dispute were decided in a court of law.  Nothing in this Agreement is intended to prevent either Employee or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.  Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction.

 

SECTION 9.   MISCELLANEOUS.

 

9.1       Entire Agreement.  This Agreement, including its exhibits, contains the full, complete, and exclusive embodiment of the entire agreement of the parties with regard to the subject matter hereof and supersedes all other communications, representations, or agreements, oral or written, including but not limited to the Second Amended Agreement, and all negotiations and communications between the parties relating to this Agreement.  Employee has not entered into this Agreement in reliance on any representations, written or oral, other than those contained herein.  Any ambiguity in this document shall not be construed against either party as the drafter.

 

9.2       Amendment.  This Agreement may not be amended or modified except by an instrument in writing duly executed by Employee and the Company’s Chief Executive Officer.

 

9.3       Applicable Law; Choice Of Forum.  This Agreement has been made and executed under, and will be construed and interpreted in accordance with, the laws of the State of California, without regard to conflict of laws principles.

 

9.4       Provisions Severable.  If any provision of this Agreement is held to be invalid, illegal or unenforceable, in whole or in part, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement; and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein except to the extent that such provision may be construed and modified so as to render it valid, lawful, and enforceable in a manner consistent with the intent of the parties to the extent compatible with the applicable law as it shall then appear.

 

9.5       Non-Waiver Of Rights And Breaches.  Any waiver by a party of any breach of any provision of this Agreement shall be in writing and will not be deemed to be a waiver of any subsequent breach of that provision, or of any breach of any other provision of this Agreement.  No failure or delay in exercising any right, power, or privilege granted to a party under any provision of this Agreement will be deemed a waiver of that or any other right, power or privilege.  No single or partial exercise of any right, power or privilege granted to a party under any provision of this Agreement will preclude any other or further exercise of that or any other right, power or privilege.

 

14

 

9.6       Headings.  The headings of the Sections and Paragraphs of this Agreement are inserted for ease of reference only, and will have no effect in the construction or interpretation of this Agreement.

 

9.7       Counterparts.  This Agreement and any amendment or supplement to this Agreement may be executed in two or more counterparts, each of which will constitute an original but all of which will together constitute a single instrument. Transmission by facsimile or .pdf of an executed counterpart signature page hereof by a party hereto shall constitute due execution and delivery of this Agreement by such party.

 

9.8       Indemnification.  In addition to any rights to indemnification to which Employee may be entitled under the Company’s Charter and By-Laws, the Company shall indemnify Employee at all times during and after Employee’s employment to the maximum extent permitted under Section 2-418 of the General Corporation Law of the State of Maryland or any successor provision thereof and any other applicable state law, and shall pay Employee’s expenses in defending any civil or criminal action, suit, or proceeding in advance of the final disposition of such action, suit, or proceeding, to the maximum extent permitted under such applicable state laws.

 

IN WITNESS WHEREOF, the parties hereto have caused this Third Amended and Restated  Executive  Employment Agreement to be duly executed on the dates identified below, effective as of the Effective Date stated above herein.

 

	
ALEXANDRIA REAL ESTATE   EQUITIES, INC.
    	
STEPHEN A. RICHARDSON
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
         /s/   Joel S. Marcus
    	
 
    	
/s/ Stephen A.   Richardson
    
	
Joel S. Marcus
    	
 
    
	
Chief Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
October 25, 2011
    	
 
    	
Date:
    	
October 25, 2011
    
						

 

15

 

EXHIBIT A

 

SEPARATION DATE RELEASE

 

(To be signed on or within 21 days after the Separation Date.)

 

In exchange for the accelerated vesting of equity, severance benefits, and/or other consideration to be provided to me by Alexandria Real Estate Equities, Inc. (the “Company”), and as required by the Third Amended and Restated Executive Employment Agreement between the Company and me effective as of October 25, 2011 (the “Agreement”), I hereby provide the following Separation Date Release (the “Release”).

 

I hereby generally and completely release the Company and its parent and subsidiary entities, and its and their respective directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, insurers, affiliates, and assigns (collectively, the “Released Parties”) of and from any and all claims, liabilities and obligations, both known and unknown, arising out of or in any way related to events, acts, conduct, or omissions occurring at any time prior to or at the time that I sign this Release (collectively, the “Released Claims”).  The Released Claims include, but are not limited to: (1) all claims arising out of or in any way related to my employment with the Company or the termination of that employment; (2) all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership or equity interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing (including, but not limited to, any claims based on or arising from the Agreement); (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act (as amended) (“ADEA”), the federal Family and Medical Leave Act, the California Family Rights Act, the California Labor Code (as amended), and the California Fair Employment and Housing Act (as amended). Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (1) any rights or claims for indemnification I may have pursuant to any written indemnification agreement with the Company to which I am a party, the charter, bylaws, or operating agreements of the Company, applicable law, or applicable directors and officers liability insurance; and (2) any rights which are not waivable as a matter of law.  In addition, nothing in this Release prevents me from filing, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission, the Department of Labor, the California Department of Fair Employment and Housing, or any other government agency, except that I acknowledge and agree that I am hereby waiving my right to any monetary benefits in connection with any such claim, charge or proceeding.  I represent that I have no lawsuits, claims or actions pending in my name, or on behalf of any other person or entity, against any of the Released Parties.

 

I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I 

 

A-1

 

may have under the ADEA, and that the consideration given for the waiver and release in the preceding paragraph is in addition to anything of value to which I am already entitled.  I further acknowledge that I have been advised by this writing that:  (1) my waiver and release do not apply to any rights or claims that may arise after the date I sign this Release; (2) I should consult with an attorney prior to signing this Release (although I may choose voluntarily not to do so); (3) I have twenty-one (21) days to consider this Release (although I may choose voluntarily to sign it earlier); (4) I have seven (7) days following the date I sign this Release to revoke it by providing written notice of revocation to the Company’s Chief Executive Officer; and (5) this Release will not be effective until the date upon which the revocation period has expired, which will be the eighth calendar day after the date I sign it if I do not revoke it (the “Effective Date”).

 

I UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows:  “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”  I hereby expressly waive and relinquish all rights and benefits under that section and any law or legal principle of similar effect in any jurisdiction with respect to my release of claims herein, including but not limited to the release of unknown and unsuspected claims.

 

I hereby represent that I have been paid all compensation owed and for all hours worked, I have received all the leave and leave benefits and protections for which I am eligible, pursuant to the federal Family and Medical Leave Act, the California Family Rights Act, any Company policy or applicable law, and I have not suffered any on-the-job injury or illness for which I have not already filed a workers’ compensation claim.

 

I further agree: (1) not to disparage the Company, or any of the other Released Parties, in any manner likely to be harmful to its or their business, business reputation, or personal reputation (although I may respond accurately and fully to any question, inquiry or request for information as required by legal process); (2) not to voluntarily (except in response to legal compulsion) assist any third party in bringing or pursuing any proposed or pending litigation, arbitration, administrative claim or other formal proceeding against the Company, its parent or subsidiary entities, affiliates, officers, directors, employees or agents; and (3) to cooperate fully with the Company, by voluntarily (without legal compulsion) providing accurate and complete information, in connection with the Company’s actual or contemplated defense, prosecution, or investigation of any claims or demands by or against third parties, or other matters, arising from events, acts, or failures to act that occurred during the period of my employment by the Company.

 

	
 
    	
By:
    	
 
    
	
 
    	
Stephen   A. Richardson
    
	
 
    	
 
    
	
 
    	
Date:
    	
 
    
				

 

A-2

 

EXHIBIT B

 

EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

B-1

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