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EXHIBIT 10.8

 

 

EXECUTIVE RETIREMENT AGREEMENT

 

 

                THIS EXECUTIVE RETIREMENT
AGREEMENT (“Agreement”) is made by and between Welltower Inc., together with
its affiliates, subsidiaries, divisions, joint ventures, predecessors,
successors and assigns (the “Company”) and Jeffrey H. Miller on behalf of
himself and his heirs, executors, administrators, successors, and assigns
(collectively referred to herein as “Employee”) (the Company and Employee shall
be collectively referred to herein as “Parties”).   

 

 

RECITALS

 

WHEREAS, Employee was employed by the Company subject to an
employment contract dated December 29, 2008 (the “Employment Agreement”); 

 

WHEREAS,
the current term of the Employment Agreement expires on January 31, 2019 (as
defined in the Employment Agreement); 

 

WHEREAS, Employee
decided to voluntarily retire from Employee’s employment with the Company
effective January 31, 2017 (the “Retirement Date”);  

 

WHEREAS, in consideration
for Employee’s execution and non-revocation of this Agreement, the Company
shall pay to the Employee the payments described in that certain letter between
Employee and the Company re: Employee’s retirement dated February 10, 2017 (the
“Retirement Letter”) and set forth herein;

  

WHEREAS, Employee
is bound by the confidentiality and restrictive covenant provisions contained
in Sections 9 and 10 of the Employment Agreement; and 

 

WHEREAS, Employee elects to
receive separation pay and other benefits under this Agreement under the terms
and conditions set forth below.

 

NOW THEREFORE, in consideration
of the mutual promises set forth herein, the Parties hereby agree as follows:

 

The above recitals
are hereby incorporated into this Agreement.

 

1.             Last
Day of Employment.  Employee’s last day of employment with the
Company was the Retirement Date. In addition to resignation of employment with
the Company, Employee also hereby retires from any position that he holds with
the Company, any subsidiary or affiliate of the Company, and any position that
he holds at the request, as a representative, or for the benefit of, the
Company or any subsidiary or affiliate of the Company, all effective as of the Retirement
Date.  The Company represents and warrants that it shall promptly take any and
all actions that may be required to remove Employee from any position from
which he has resigned pursuant to the preceding sentences, and shall promptly
reimburse Employee for any costs associated for its failure to do so. The
Company and Employee acknowledge that the terms of that certain Indemnification
Agreement dated February 14, 2005 between Employee and the Company (at the
time, Health Care REIT, Inc.) remain in effect and fully enforceable following
Employee’s Retirement Date in accordance with its terms.

 

2.             Bonus
Payment for Individual Performance.  In
consideration for Employee signing the Retirement Letter and signing this
Agreement, and complying with their respective terms, the Company agrees, subject to Employee’s execution of this Agreement and it
becoming effective as set forth in Paragraph 24 below (the
“Effective Date”), to pay to Employee the amount payable under the Company’s
2016 bonus plan based on Employee’s individual performance at target level. 
Such amount will be paid on the later of (i) the Effective Date or (ii) the
date on which other executives of the Company are paid annual bonuses for 2016.

 

3.              Payments
Following Retirement.  In consideration for Employee signing this
Agreement, and complying with its terms, the Company agrees, after the Effective Date, to pay to Employee within sixty (60) days following the Retirement
Date, the amount of Two Million Six Hundred Seventeen Thousand Two Hundred
Seventy-Two Dollars ($2,617,272), less
lawful deductions (the “Separation Pay”), as the amount of the Separation Pay
may be adjusted following finalization of Employee’s 2016 bonus, and to waive
any right it may have to enforce the provisions of Section 5(a) of the
Employment Agreement pursuant to which Employee would be obligated to repay any
portion of the Separation Pay to the Company in the event Employee were to
obtain a replacement 

 

   

position with a new employer prior
to January 31, 2019.  The Separation Pay will be paid in a lump sum by check or
wire transfer.  The Company will also provide Employee with the other payments
and benefits, including the acceleration of incentive awards, as described in
the Retirement Letter.

 

4.             No
Consideration Absent Execution of this Agreement.  Employee understands and agrees that Employee is not
otherwise owed and would not receive certain of the monies and/or benefits
specified in Paragraphs 2 and 3 above, except for Employee’s execution of this
Agreement and the fulfillment of the promises contained herein.

 

5.             General Release, Claims Not
Released and Related Provisions

 

a.             General
Release of All Claims.  In exchange for the commitments of the
Company as set forth in this Agreement, which Employee acknowledges and agrees
provide consideration to which Employee would not otherwise be entitled,
Employees agrees to release and discharge unconditionally the Company and any
of its past or present subsidiaries, affiliates, related entities,
predecessors, merged entities and parent entities, benefit plans, and all of
their respective past and present officers, directors, stockholders, employees,
benefit plan administrators and trustees, agents, attorneys, insurers,
representatives, affiliates and all of their respective successors and assigns
(collectively, the “Company Released Parties”), from any and all claims,
actions, causes of action, demands, obligations, grievances, suits, losses,
debts and expenses (including attorney’s fees and costs), damages and claims in
law or in equity of any nature whatsoever, known or unknown, suspected or
unsuspected, Employee ever had, now has, or may ever have against any Company
Released Party  up to and including the day on which Employee signs this
Agreement.  Without limiting the generality of the foregoing, the claims
Employee is waiving include, but are not limited to, (a) any claims, demands,
and causes of action alleging violations of public policy, or of any federal,
state, or local law, statute, regulation, executive order, or ordinance, or of
any duties or other obligations of any kind or description arising in law or
equity under federal, state, or local law, regulation, ordinance, or public
policy having any bearing whatsoever on the terms or conditions of Employee’s
employment with or by the Company or the termination or resignation of
Employee’s employment with the Company or any association or transaction with
or by the Company; (b) all claims of discrimination or harassment on the basis
of sex, race, national origin, religion, sexual orientation, disability,
veteran status or any other legally protected category, and of retaliation; (c)
all claims under Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act, the Age Discrimination in Employment Act, the Older Workers
Benefit Protection Act, the Fair Labor Standards Act, the Genetic Information
Nondiscrimination Act, 42 U.S.C. § 1981, as amended, and all other federal,
state and local fair employment and anti-discrimination laws, all as amended,
including without limitation the Ohio Civil Rights Act, O.R.C. § 4112.01
et seq., the Ohio Age Discrimination in Employment Act, O.R.C § 4112.14;
(d) all claims under the Worker Adjustment and Retraining Notification Act and
similar state and local statutes, all as amended, including without limitation
the Ohio Uniformed Services Employment and Reemployment Act, Ohio Rev. Code
§§ 5903.01, 5903.02; (e) all claims under the National Labor Relations
Act, as amended; (f) all claims under the Family and Medical Leave Act and
other federal, state and local leave laws, all as amended; (g) all claims under
the Employee Retirement Income Security Act (except with respect to accrued
vested benefits under any retirement or 401(k) plan in accordance with the
terms of such plan and applicable law); (h) all claims under the Sarbanes-Oxley
Act of 2002, the False Claims Act, the Dodd-Frank Wall Street Reform and
Consumer Protection Act, the Securities Exchange Act of 1934, the Commodity
Exchange Act, the Consumer Financial Protection Act, the American Recovery and
Reinvestment Act, the Foreign Corrupt Practices Act, and the EU Competition
Law; (i) all claims of whistleblowing and retaliation under federal, state and
local laws, including without limitation the Ohio Whistleblower Protection Act,
O.R.C. § 4113.51 et. seq., Ohio Statutory Provisions regarding
Retaliation/Discrimination for Pursuing a Workers Compensation Claim, O.R.C.
§ 4111.01 et. seq.; (j) all claims under the Ohio Minimum Fair Wages Act,
O.R.C. §  4111.01 et seq.; (k) all claims under the Ohio Wage Payment Act,
O.R.C. §  4113.15; (l) all claims under any principle of common law or
sounding in tort or contract; (m) all claims concerning any right to
reinstatement; (n) all claims under the Immigration Reform and Control Act; (o)
all claims under the Fair Credit Reporting Act; (p) all claims under The Equal
Pay Act; (q) all claims for attorneys’ fees, costs, damages or other relief
(monetary, equitable or otherwise), whether under federal, state or local law,
whether statutory, regulatory or common law, to the fullest extent permitted by
law.  Further, each of the persons and entities released herein is intended to
and shall be a third-party beneficiary of this Agreement.  This release of
claims does not affect or waive any claim for workers’ compensation benefits,
unemployment benefits or other legally non-waivable rights or claims; claims
that arise after Employee signs this Agreement; Employee’s rights to
indemnification or advancement of expenses under the bylaws of the Company or
under any applicable directors and officers liability insurance policy with
respect to Employee’s liability as an employee, director or officer of the
Company; Employee’s right to exercise any and all Company stock options held by
Employee that are exercisable as of the Retirement Date during the applicable
period of exercise and in accordance with all other terms of those options and
the stock options plans, agreements, and notices under which such options were
granted; or Employee’s right to enforce the terms of this Agreement. 
Additionally, nothing in this Agreement waives or limits Employee’s right to
file a charge with, provide information to or cooperate in any investigation of
or proceeding brought by a government agency (though Employee acknowledges
Employee is not entitled to recover money or other relief with respect to the
claims waived in this Agreement).  

 

b.             Claims
Not Released.   Employee is not waiving any rights he may
have to: (a) his own vested accrued employee benefits under the Company’s
health, welfare, or retirement benefit plans as of the Retirement Date; (b)
benefits and/or the right to 

 

   

seek benefits under
applicable workers’ compensation and/or unemployment compensation statutes; (c)
pursue claims which by law cannot be waived by signing this Agreement; (d)
enforce this Agreement; and/or (e) challenge the validity of this Agreement.  

 

c.             Governmental
Agencies.   Nothing in this Agreement prohibits or
prevents Employee from filing a charge with or participating, testifying, or
assisting in any investigation, hearing, whistleblower proceeding or other
proceeding before any federal, state, or local government agency (e.g. EEOC,
NLRB, SEC., etc.), nor does anything in this Agreement preclude, prohibit, or
otherwise limit, in any way, Employee’s rights and abilities to contact,
communicate with, report matters to, or otherwise participate in any
whistleblower program administered by any such agencies.  However, to the
maximum extent permitted by law, Employee agrees that if such an administrative
claim is made, Employee shall not be entitled to recover any individual
monetary relief or other individual remedies.

 

d.             Collective/Class
Action Waiver.  If any claim is not subject to release, to
the extent permitted by law, Employee waives any right or ability to be a class
or collective action representative or to otherwise participate in any putative
or certified class, collective or multi-party action
or proceeding based on such a claim in which the Company or any other
Company Released Party identified in this Agreement is a party.

 

                e.             Release of Unknown Claims. 
Employee intends that this release of claims cover all claims described in
Paragraph 5(a) above whether or not known to Employee.  Employee further
recognizes the risk that, subsequent to the execution of this Agreement,
Employee may incur loss, damage or injury which Employee attributes to the
claims encompassed by this release.  Employee also expressly waives and
relinquishes, to the fullest extent permitted by law, any and all rights he may
have under California Civil Code Section 1542, or the comparable provisions of
the laws of any other jurisdiction, which provides 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.”   

 

6.             Acknowledgments
and Affirmations.  

 

                Employee affirms that Employee
has not filed, caused to be filed, or presently is a party to any claim against
any Company Released Party.  Employee also represents
and warrants that there has been no assignment or other transfer of any
interest in any claim by Employee that is covered by the release set forth in
Paragraph 5(a).   

 

                Employee also affirms that
Employee has been paid and/or has received all compensation, wages, bonuses,
commissions, and/or benefits which are due and payable as of the date Employee
signs this Agreement.  Employee affirms that Employee has been granted any
leave to which Employee was entitled under the Family and Medical Leave Act or
related state or local leave or disability accommodation laws.

Employee further affirms that Employee has no known
workplace injuries or occupational diseases.  

 

                Employee also affirms that
Employee has not divulged any proprietary or confidential information of the
Company  and will continue to maintain the
confidentiality of such information consistent with the Company’s policies and
Employee’s agreement(s) with the Company and/or common law. Employee hereby
represents and warrants he has not breached any of his obligations under Section
9 of his Employment Agreement.   

 

                Employee further affirms that
Employee has not been retaliated against for reporting any allegations of
wrongdoing by the Company or its officers, including any allegations of
corporate fraud.   

 

                Employee affirms that all
of the Company’s decisions regarding Employee’s pay and benefits through the
date of Employee’s execution of this Agreement were not discriminatory based on
age, disability, race, color, sex, religion, national origin or any other classification
protected by law.

 

                Employee hereby represents
and warrants he has not breached any of his obligations under Section 10 of his
Employment Agreement.   

 

7.             Non-Competition,
Non-Solicitation and Non-Disclosure.  

 

a.             As the Company’s Executive Vice President
and Chief Operating Officer, as well as through other positions the Employee
may have held with the Company and its affiliates, the Employee has obtained
extensive and valuable knowledge and 

 

   

information
concerning the Company’s business (including confidential information relating
to the Company and its operations, intellectual property, assets, contracts,
customers, personnel, plans, marketing plans, research and development plans
and prospects), the Employee acknowledges and agrees that it would be
impossible for the Employee to work as an employee, consultant or advisor in
any business which competes with the Company in the business of
(i) ownership or operation of Health Care Facilities (defined below);
(ii) investment in or lending to health care related enterprises (including,
without limitation, owners or developers of Health Care Facilities);
(iii) management of Health Care Facilities; or (iv) provision of any
planning or development services for Health Care Facilities (individually, and
in the aggregate, the “Company Business”), without inevitably disclosing
confidential and proprietary information belonging to the Company. 
Accordingly, the Employee will not, for a period beginning on the Effective
Date of this Agreement and ending December 31, 2017 (the “Restricted Period”),
engage in any business activities on behalf of any enterprise anywhere in the
world which competes with the Company in the Company Business other than an
Excluded Enterprise (defined below). “Health Care Facilities” means any senior
housing facilities or facilities used or intended primarily for the delivery of
health care services, including, without limitation, any active adult
communities, independent living facilities, assisted living facilities, skilled
nursing facilities, inpatient rehabilitation facilities, ambulatory surgery
centers, medical office buildings, hospitals of any kind, or any similar types
of facilities or projects.  An “Excluded Enterprise” means Miller Diversified,
Inc., Kingston Healthcare Company and any of their subsidiaries.  The Employee
will be deemed to be engaged in such competitive business activities if he
participates in such a business enterprise as an employee, officer, director,
consultant, agent, partner, proprietor, or other participant; provided that the
ownership of no more than two percent (2%) of the stock of a publicly traded
company engaged in a competitive business shall not be deemed to be engaging in
competitive business activities.  During the Restricted Period, Employee may
direct any questions regarding this Paragraph 7 to the Company’s General
Counsel.

 

To assist the Company in its reasonable enforcement of this
provision, during the Restricted Period, Employee will provide the Company with
written notice at least five (5) business days prior to accepting any
employment or engagement as a consultant or contractor with a third party. 
Such notice will include, at a minimum, the name and a description of the
business of the prospective employer or engaging entity, as well as the
proposed title and responsibilities of Employee.    

 

b.             Employee
shall not, during the Restricted Period, to the fullest extent allowed by

applicable
law, directly or indirectly, hire, solicit, induce, recruit or encourage any of
the Company’s employees or consultants to leave their employment or consulting
relationship with the Company for other employment or consulting, including
employment or consulting that is competitive with the Company.  

 

c.             Employee understands and
agrees that during the course of his employment with the Company, Employee had
access, in a position of trust and as a fiduciary, to proprietary and/or
confidential information of the Company.  Employee agrees that Employee will
not, at any time, disclose, divulge, transfer or provide access to, or use for
the benefit of, any third party outside the Company (or any Company Released
Party), any Proprietary Information of the Company without prior authorization
of the Company.  “Proprietary Information” shall mean any
and all information or material of the Company and/or any Company Released
Party which is not generally available to or used by others, or the utility or
value of which is not generally known or recognized as standard practice,
whether or not the underlying details are in the public domain, including,
without limitation: (i) information or material relating to the Company and/or
any Company Released Party and its business as conducted or anticipated to be
conducted; target clients, investment criteria, business or strategic plans;
operations; past, current or anticipated investments, acquisitions,
developments, services, products or software; customers or prospective
customers; underwriting,  capital or analytical models or protocols; relations
with business partners or prospective business partners; or research,
development, property management, investment, purchasing, accounting, or
marketing activities; (ii) information or material relating to the Company’s
and/or any of Company Released Party’s properties, facilities, improvements,
investments, discoveries, “know-how,” energy programs, technological
developments, or unpublished writings or other works of authorship, or to the
materials, contacts, techniques, processes, plans or methods used in the
origination, development, management or marketing of the Company’s and/or any
Company Released Party’s facilities, properties, investments, services,
products or software; (iii) information on or material relating to the Company
and/or any Company Released Party which when received is marked as
“proprietary,” “private,” or “confidential” or which a reasonable person would
recognize as proprietary, private or confidential; (iv) trade secrets of the
Company and/or any Company Released Party; (v) information regarding the
Company’s transactions, transaction structures, relationships, customers and
clients; (vi) software of the Company and/or any Company Released Party in
various stages of development, software designs, web-based solutions,
specifications, programming aids, programming languages, interfaces, visual
displays, technical documentation, user manuals, data files and databases of
the Company and/or any Company Released Party; and (vii) any similar
information of the type described above which the Company and/or any Company
Released Party obtained from another party and which the Company and/or the
Company Released Party treats as or designates as being proprietary, private or
confidential, whether or not owned or developed by the Company and/or the
Company Released Party.  Notwithstanding the foregoing, “Proprietary
Information” does not include any information which is properly published or in
the public domain; provided, however, that information which is published by or
with the aid of Employee outside the scope of employment or contrary to the
requirements of this Agreement will not be considered to have been properly
published, and therefore will not be in the public domain for purposes of this
Agreement. 

 

 

   

d.             Employee
acknowledges and agrees that the provisions of this paragraph of the Agreement
are reasonable and appropriate in all respects, and in the event of any
violation by Employee of any such provisions, the Company would suffer
irreparable harm and its remedies at law would be inadequate.  Accordingly, in
the event of any violation or attempted violation of any such provisions by
Employee, the Company shall be entitled to a temporary restraining order,
temporary and permanent injunctions, specific performance, and other equitable
relief.  Employee agrees to indemnify and hold the Company harmless from and
against any and all loss, cost, damage, or expense, including without
limitation, attorneys’ fees that arise out of any breach by Employee of this
Agreement.  All rights and remedies of the Company under this Agreement are
cumulative and in addition to all other rights and remedies which may be
available to the Company from time to time, under any other agreement, at law,
or in equity.

 

e.             The Parties agree that if
the scope and enforceability of any covenant contained within this Paragraph 7
is in anyway disputed, a court of competent jurisdiction (as described in
Paragraph 15, below) may modify and enforce the covenant to the extent that the
court determines that the covenant is reasonable under the circumstances
existing at that time.   

8.             Non-Disparagement.  
Employee agrees that he will not make or direct anyone else to make on
Employee’s behalf any disparaging or untruthful remarks or statements, whether
oral or written, about the Company, its strategies, clients, operators and
tenants, its operations or its products, services, affiliates, officers, directors,
employees, or agents (collectively the “Group” and individually a “Group
Member”), or issue any communication that reflects adversely on or
encourages any adverse action against the Group or any Group Member.  Employee
will not make any direct or indirect written or oral statements to the press,
television, radio or other media or other external persons or entities
concerning any matters pertaining to the business and affairs of the Group or
any Group Member.  The Company agrees not to make, and shall direct its
officers and senior executives not to make on its behalf, any disparaging or
untruthful remarks or statements about Employee’s employment with the Company
following the Retirement Date.  The restrictions described in this paragraph
shall not apply to any truthful statements made in response to a subpoena or
other compulsory legal process or to law enforcement or other governmental
authorities.

 

                To the extent inquiries
regarding the Employee’s employment with the Company are directed to Christy
Contardi Stone, the Company’s Senior Vice President – Human Capital &
Strategic Initiatives, prospective employers will be provided the dates of the
Employee’s employment, his last salary, his position with the Company and a
form of recommendation in a form agreed to by the Parties.  

 

9.             Cooperation after
Retirement.  Employee agrees to give prompt written notice to the Company
of any claim or injury relating to the Company, and to fully cooperate in good
faith and to the best of Employee’s ability with the Company in connection with
all pending, potential or future claims, investigations or actions that
directly or indirectly relate to any transaction, event or activity about which
the Employee may have knowledge because of Employee’s employment with the
Company, as long as such cooperation is scheduled by the Company, to the extent
possible, to require only occasional efforts and to not conflict with any
future employment. Such cooperation shall include all assistance that the
Company, its counsel, or its representatives may reasonably request, including
reviewing and interpreting documents, meeting with counsel, providing factual
information and material, and appearing or testifying as a witness, as long as
the Company provides legal representation.  The Company agrees to make every
reasonable effort to provide Employee with reasonable notice in the event his participation is required and to reimburse
Employee for reasonable out-of-pocket costs incurred by Employee as the direct result of his participation, provided
that such out-of-pocket costs are supported by appropriate documentation and have prior authorization of the Company. 

10.           Return
of Property.   Employee affirms that Employee has returned all of the
Company’s property, documents, and/or any confidential information in
Employee’s possession or control.  Employee also affirms that Employee is in
possession of all of Employee’s property that Employee had at the Company’s
premises and that the Company  is not in
possession of any of Employee’s property.  Notwithstanding the foregoing,
Employee may retain his list of personal contacts.

 

11.           Code Section
409A.  To the extent applicable, it is intended that this
Agreement comply with or, as applicable, constitute a short-term deferral
or otherwise be exempt from the provisions of Section 409A of the Internal
Revenue Code of 1986, as amended, and the regulations and guidance
promulgated thereunder (“Section 409A”).  This Agreement will be
administered and interpreted in a manner consistent with this intent, and any
provision that would cause this Agreement to fail to satisfy Section 409A will
have no force and effect until amended to comply therewith (which amendment may
be retroactive to the extent permitted by Section 409A).  Employee and the
Company agree that this termination of employment shall be considered
a “separation from service” from the Company within the meaning of Section
409A.  If Employee is deemed on the date of separation from service to be
a “specified employee” (within the meaning of Treas. Reg. Section 1.409A-l(i)),
then with regard to any payment that is required to be delayed pursuant to Code
Section 409A(a)(2)(B), such payment shall not be made prior to the earlier of
(a) the expiration of the six (6)-month period measured from the date of
separation from service and (b) the date of Employee’s death.  In addition, for
purposes of this Agreement, each amount to be paid or benefit to be provided to
Employee pursuant to this Agreement shall be construed as a separate identified
payment for purposes of Section 409A.   Any
reimbursement or advancement payable to Employee pursuant to this 

 

   

Agreement shall be conditioned on the submission by
Employee of all expense reports reasonably required under any applicable
expense policy.  Any amount of expenses eligible for reimbursement, or in-kind
benefit provided, during a calendar years shall not affect the amount of
expenses eligible for reimbursement, on in-kind benefit provided, during any
other calendar year.  The right to any reimbursement or in-kind benefit pursuant
to this Agreement shall not be subject to liquidation or exchange for any other
benefit.

 

12.           Consequences of Breach.  
Employee acknowledges and agrees that in the event he should breach or violate
any provision of this Agreement, including but not limited to the obligations
of confidentiality, non-disparagement, non-solicitation and non-competition,
Employee shall be subject to legal action for such breach or violation and may
be held liable to the Company and/or one or more of the Company Released
Parties for contractual and/or other legal or equitable remedies.  Without
limiting the remedies available to the Company and/or one or more of the
Company Released Parties as set forth in the preceding sentence, Employee shall
be obligated to return all consideration provided under Paragraphs 2 and 3 of
this Agreement.

 

13.           Successors and
Assigns.   This Agreement will inure to the benefit of successors
and assigns of the Company.  Notwithstanding
anything contained in this Agreement to the contrary, the Company may assign this Agreement and its rights,
together with its obligations, hereunder in connection with any sale, transfer
or other disposition of all or substantially all of its assets or business,
whether by merger, consolidation or otherwise.  Such assignment includes the assignment of rights and
contractual duties. Employee does not have any right to assign
Employee’s rights or delegate Employee’s obligations under this Agreement to
anyone.

 

14.           Arbitration.           Subject to Paragraph 7 hereof,
all claims, disputes, questions, or controversies arising out of or relating to
this Agreement and Employee’s employment hereunder, including without
limitation the construction or application of any of the terms, provisions, or
conditions of this Agreement and any claims for any alleged discrimination,
harassment, or retaliation in violation of any federal, state or local law,
will be resolved exclusively in final and binding arbitration held under the
auspices of the American Arbitration Association (“AAA”)  in accordance with
AAA’s then current Employment Arbitration Rules, or successor rules then in
effect.  The arbitration will be held in Toledo, Ohio and will be conducted and
administered by AAA or, in the event AAA does not then conduct arbitration
proceedings, a similarly reputable arbitration administrator. Employee and the
Company will select a mutually acceptable, neutral arbitrator from among the
AAA panel of arbitrators. Except as provided by this Agreement, the Federal
Arbitration Act will govern the administration of the arbitration proceedings.
The arbitrator will apply the substantive law (and the law of remedies, if
applicable) of the State of Ohio, or federal law, if Ohio law is preempted, and
the arbitrator is without jurisdiction to apply any different substantive law.
Employee and the Company will each be allowed to engage in adequate discovery,
the scope of which will be determined by the arbitrator consistent with the
nature of the claim[s] in dispute. The arbitrator will have the authority to
entertain a motion to dismiss and/or a motion for summary judgment by any party
and will apply the standards governing such motions under the Federal Rules of
Civil Procedure. The arbitrator will render a written award and supporting
opinion that will set forth the arbitrator’s findings of fact and conclusions
of law. Judgment upon the award may be entered in any court of competent
jurisdiction. The Company will pay the arbitrator’s fees, as well as all
administrative fees, associated with the arbitration. Each party will be
responsible for paying its own attorneys’ fees and costs (including expert
witness fees and costs, if any), provided, however, that the arbitrator may
award attorney’s fees and costs to the prevailing party, except as prohibited
by law.  The existence and subject matter of all arbitration proceedings,
including, any settlements or awards there under, shall remain confidential. 
In entering into this Agreement, both parties are waiving the right to a trial
by judge or jury.

 

15.           Governing Law and
Interpretation.   This
Agreement shall be governed and conformed in accordance with the laws of Ohio
without regard to its conflict of laws provisions.  In the event of a breach of
any provision of this Agreement, either Party may institute an action
specifically to enforce any term or terms of this Agreement and/or to seek any
damages for breach.  Employee agrees that, in connection with any action, suit
or other proceeding in connection with, arising out of or relating to this
Agreement all disputes shall be exclusively resolved by courts of competent
jurisdiction sitting in Lucas County, Ohio, or the United States District Court
for the Northern District of Ohio, as may be appropriate.   Employee hereby:
(a) submits to the exclusive personal jurisdiction of such courts; (b) consents
to service of process in connection with any action, suit or proceeding against
Employee; and (c) waives any other requirement (whether imposed by statute,
rule of court or otherwise) with respect to personal jurisdiction, venue or
service of process.  

 

16.           Severability.  
Should any provision of this Agreement (other than the provisions of Paragraph
7, which shall be governed by the reformation provisions of Paragraph 7(e) be
declared illegal or unenforceable by any court of competent jurisdiction and
should such provision be unable to be modified to be enforceable, excluding the
general release language, such provision shall immediately become null and
void, leaving the remainder of this Agreement in full force and effect.  

 

17.           Nonadmission of
Wrongdoing.  The Parties agree that neither this Agreement nor the
furnishing of the consideration for this Agreement shall be deemed or construed
at any time for any purpose as an admission by any Company Released Party of
wrongdoing or evidence of any liability or unlawful conduct of any kind.

 

 

   

18.           Amendment. 
This Agreement may not be modified, altered or changed except in writing and
signed by both Parties wherein specific reference is made to this Agreement. 

 

19.           Miscellaneous. 

 

                a.             This
Agreement may be signed in counterparts, both of which shall be deemed an
original, but both of which, taken together shall constitute the same
instrument.  A signature made on a faxed or electronically mailed copy of the
Agreement or a signature transmitted by facsimile or electronic mail shall have
the same effect as the original signature.

 

                b.             The section
headings used in this Agreement are intended solely for convenience of
reference and shall not in any manner amplify, limit, modify or otherwise be
used in the interpretation of any of the provisions hereof.

 

                c.             If Employee
or the Company fails to enforce this Agreement or to insist on performance of
any term, that failure does not mean a waiver of that term or of the
Agreement.  The Agreement remains in full force and effect.

 

20.           Entire Agreement. 
This Agreement sets forth the entire agreement between the Parties hereto,
and fully supersedes any prior agreements or understandings between the
Parties, with the exception of the Employment Agreement, which is incorporated
herein by reference, to the extent it does not conflict with the language in
this Agreement. Employee acknowledges that Employee has not relied on
any representations, promises, or agreements of any kind made to Employee in
connection with Employee’s decision to accept this Agreement, except for those
set forth in this Agreement.

 

21.           Legal Fees.  The
Company shall reimburse Employee up to $20,000, in the aggregate, for
Executive’s reasonable attorney’s fees and expenses incurred in connection with
negotiating and documenting this Agreement.  The Company will provide such
reimbursements no later than ninety days (90) days following the Company’s
receipt of supporting documentation of incurrence of these expenses, but in any
event no later than the end of the calendar year following the calendar year in
which those expenses were incurred and otherwise in compliance with Section
409A of the Code. 

 

22.           Joint Participation and Negotiation of Agreement.   Each party has had
the opportunity to obtain the advice of legal counsel and to review, comment
upon, and negotiate this Agreement.  Accordingly, it is agreed that no rule of
construction shall apply against any party or in favor of any party.  This
Agreement shall be construed in light of the fact that the Parties jointly
prepared this Agreement, and any uncertainty or ambiguity shall not be
interpreted against any one party and in favor of the other.

 

23.           Taxes and
Other Withholdings.  Notwithstanding any other provision of this
Agreement, the Company may withhold from amounts payable hereunder all federal,
state, local and foreign taxes and other amounts that are required to be
withheld by applicable laws or regulations, and the withholding of any amount
shall be treated as payment thereof for purposes of determining whether
Employee has been paid amounts to which he is entitled.  Employee acknowledges
that (i) the Company has made no representation to Employee as to the tax
treatment of any compensation or benefits to be paid to Employee under this
Agreement and (ii) the Company has no obligation to “gross-up” any amount
payable to Employee under this Agreement for taxes payable by Employee thereon.

 

24.           Review and Revocation
of Agreement.  Employee acknowledges and agrees:  (i) that he has been
advised to consult an attorney regarding this Agreement and the releases set
forth herein before executing this Agreement; (ii) that he was given 21 days to
review and consider signing this Agreement, although he may, at his discretion,
knowingly and voluntarily, sign and return the Agreement at any earlier time,
but Employee may not sign and return the Agreement until on or after the
Retirement Date; (iii) that modification of this Agreement does not restart
this 21 day consideration period; (iv) that he is waiving rights or claims
which may be waived by law in exchange for consideration which is not otherwise
due to Employee, including claims and rights under the Age Discrimination in
Employment Act of 1967, as amended (the “ADEA”), and as otherwise described in
this Agreement; (v) that rights or claims that may arise after the date this
Agreement is executed, including those arising under the ADEA, are not waived
by this Agreement; (vi) that at any time within 7 days after signing this
Agreement, he may revoke the Agreement; and (vii) that this Agreement is not
enforceable until the revocation period has passed without a revocation.   

 

To revoke this Agreement, Employee must
send a written statement of revocation delivered by certified mail to Welltower
Inc., Attn:  Chief Executive Officer, 4500 Dorr Street, Toledo, OH  43615. 
This revocation must be received no later than the seventh (7th) day following
Employee’s execution of this Agreement.      

 

EMPLOYEE, FREELY AND KNOWINGLY, AND AFTER
DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND
RELEASE ALL CLAIMS EMPLOYEE HAS OR MIGHT HAVE AGAINST EACH AND EVERY COMPANY
RELEASED PARTY AS OF THE DATE OF EXECUTION OF THIS AGREEMENT.

 

 

 

   

25.           Counterparts. 
This Agreement may be executed in counterparts and delivered by means of
facsimile or portable document format (PDF), each of which when so executed and
delivered shall be an original, but all such counterparts together shall
constitute one and the same instrument.

 

[Signature Page
Follows] 

 

 

 

 

   

                The
Parties knowingly and voluntarily sign this Executive Retirement Agreement as
of the date(s) set forth below:

 

                                                                                                                Welltower
Inc.

 

By:    /s/ Jeffrey H.
Miller                                                                    By:    /s/
Matthew McQueen                                              

              Jeffrey H.
Miller                                                                      Name: 
Matthew McQueen          

                                                                Title: 
Senior Vice President, General Counsel 

                                                                and
Corporate Secretary

 

 

Date: February 16, 2017                                                                       Date:
February 16, 2017EXHIBIT 10.10

 

SEPARATION AGREEMENT

This Separation Agreement
(this “Agreement”) is made as of February 6, 2017 by and between Scott M.
Brinker (“Executive”) and Welltower Inc., a Delaware corporation (the
“Company”). 

                WHEREAS,
Executive and the Company entered into the Employment Agreement, dated March
11, 2013 (the “Employment Agreement”) and Executive has served as the Company’s
Executive Vice President and Chief Investment Officer; 

                WHEREAS,
Executive’s employment with the Company terminated on January 3, 2017 (the
“Termination Date”); and 

 WHEREAS, the Company and Executive desire to set forth the terms
and conditions of Executive’s separation and wish to resolve any and all
disputes, claims, complaints, grievances, charges, actions, petitions, and
demands that Executive may have against the Company and any Company Released
Party as defined below, including, but not limited to, any and all claims
arising out of or in any way related to Executive’s employment with or
separation from the Company.  

NOW, THEREFORE, in consideration of the promises and mutual
covenants herein contained, the parties agree with each other as follows: 

1.       TERMINATION DATE.   

a.             
Executive’s
last day of employment with the Company is the Termination Date.  Effective as
of the Termination Date, Executive also hereby resigns all other positions
Executive holds (i) with the Company, (ii) with any of the Company’s direct and
indirect subsidiaries and/or affiliates, or (iii) with any other organization as
to any position held at the request of, as a representative of, or for the
benefit of the Company.  Executive agrees to take any additional necessary
steps and sign any additional documentation that may be requested by the
Company in order to give full effect or confirmation of such resignations.  

b.            
The
Employment Agreement terminated as of the Termination Date. 

c.             
Executive
acknowledges and agrees that no action taken by the Company pursuant to, or
otherwise consistent with, this Agreement will constitute “Good Reason” as
defined in the Employment Agreement.

d.            
As
of the Termination Date, Executive will have no authority or power to bind the
Company or to represent the Company in relation to third parties or to
represent to third parties that Executive has authority or power to bind the
Company or represent the Company.

2.       PAYMENTS UPON
TERMINATION.
   In consideration of Executive’s execution of this Agreement, the
Company agrees as follows:

a.             
Wages.  On the next
regularly scheduled pay date following the Termination Date, or sooner if state
or local law requires, Executive received any unpaid base salary accrued though
the Termination Date and any accrued, unused vacation or paid time off due
through the Termination Date, less applicable deductions and withholdings. 

b.            
Bonus.  The Company
agrees to pay Executive an annual bonus for 2016. The portion of Executive’s
bonus with respect to corporate performance will be paid based on the same
performance level as other executives of the Company (currently estimated at
16.125% between target and high, resulting in a payout of $654,257).  The
portion of Executive’s bonus with respect to individual performance will be
paid at target level ($218,052) and is subject to Executive’s execution of this
Agreement.  Executive’s total 2016 bonus is estimated to be $872,282.  Any
annual bonus earned by Executive shall be paid to Executive in a lump sum, less
applicable deductions, on the date on which other executives of the Company are
paid annual bonuses for 2016, but no later than March 15, 2017.

 

  

c.             
Accrued
Benefits. 
Any nonforfeitable benefits payable to Executive under the terms of any
deferred compensation, incentive or other benefits plan maintained by the
corporation shall be payable in accordance with the terms of the applicable
plan. 

d.            
Equity.   All stock
options, restricted stock or other equity-based awards with time-based vesting
granted to Executive under any deferred compensation, incentive or other
benefit plan maintained by the Company shall become fully vested immediately
after the Termination Date, and in the case of stock options, exercisable in
full for a period not to exceed the shorter of (i) ninety (90) days following
the Termination Date or (ii) the maximum term of the applicable option.  All
stock options, restricted stock or other equity-based awards with
performance-based vesting granted to the Executive under any deferred
compensation, incentive or other benefit plan maintained by the Company shall
become vested as provided in this Section 2(d).  Attached hereto as Attachment
A is a list of all of Executive’s outstanding stock options, restricted stock
or other equity-based awards with time-based or performance based-vesting under
any deferred compensation, incentive or other benefit plan maintained by the
Company (the “Existing Equity Awards”).  Executive represents that Attachment A
is a correct and complete list of his Existing Equity Awards on the date of
this Agreement.  The Existing Equity Awards with performance-based vesting
conditions shall be treated as follows: 

i.                    
For
purposes of Executive’s Performance Restricted Stock Unit Award granted under
the Company’s 2015-2017 Long-Term Incentive Program (the “2015-2017 LTIP”),
Executive shall be deemed to have had a termination of employment by reason of
a Qualified Termination on Executive’s Termination Date.  Accordingly,
Executive shall be entitled to receive a lump sum payment in shares of the
Company’s common stock as if the performance period had ended on December 31,
2016, determined and prorated in accordance with the terms of the 2015-2017
LTIP.  Executive shall also receive a cash payment equal to the value of
accrued dividend equivalents on such shares for the same period in accordance
with the terms of the 2015-2017 LTIP. 

ii.                   
For
purposes of Executive’s Performance Restricted Stock Unit Award under the
Company’s 2016-2018 Long-Term Incentive Program (the “2016-2018 LTIP”),
Executive shall be deemed to have had a termination of employment by reason of
a Qualified Termination on Executive’s Termination Date.  Accordingly,
Executive shall be entitled to receive a lump sum payment in shares of the
Company’s common stock as if the performance period had ended on December 31,
2016, determined and prorated in accordance with the terms of the 2016-2018
LTIP.  Executive shall also receive a cash payment equal to the value of
accrued dividend equivalents on such shares for the same period.  

e.             
Continued
coverage at the Company’s expense under certain welfare benefit plans
(including health and life insurance) Executive participated in at the time of
termination, through January 31, 2019 (but no longer than the period in which
Executive would be entitled to continuation coverage under Section 4980B of the
Code), or until, if earlier, the date Executive obtains comparable coverage under
benefit plans maintained by a new employer.  With respect to continued health
insurance coverage, the Company shall pay applicable premiums under the
Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”)
for Executive and those of his dependents covered on his Termination Date,
assuming Executive timely elects COBRA continuation coverage.  Executive agrees
that the Company may impute income to Executive for the cost of Company-paid
health coverage premiums if necessary to avoid adverse income tax consequences
to Executive resulting from the application of Section 105(h) of the Code to
the Company’s payment of such premiums. 

3.       SEVERANCE
PAYMENTS.  The
following payments (to which Executive would not otherwise be entitled) are
being offered in consideration for Executive’s execution and delivery of this
Agreement, including the release set forth in Section 6, and it becoming
effective on or before February 13, 2017, and are subject to Executive’s
compliance with the covenants and other obligations set forth in Sections 5(a),
5(b), 5(c) and 5(d) of this Agreement, all of which must be satisfied in full
in order for the payments set forth below in this Section 3 to be earned.  

a.             
A
series of semi-monthly severance payments for twenty-five (25) months, each in
an amount equal to one-twenty-fourth (1/24th) of the sum of (A)
Executive’s base salary as of the Termination Date of $484,500 and (B) the
average of the annual cash bonuses paid to the Executive for 2014, 2015 and
2016, estimated to equal $1,062,497; provided, however, that Executive’s first
payment will include two installment payments and the last installment payment
shall occur on or about February 28, 2019. Subject to the release set forth in
Section 6 becoming effective and irrevocable on or before February 13, 2017,
such semi-monthly payments shall begin with the second regularly-scheduled
payroll date that occurs after February 13, 2017 and will be paid in accordance
with the Company’s regular payroll schedule and practices, subject to any delay
as required by law as outlined in Section 9 of this Agreement. Because the 2016
annual cash bonus payable to Executive may not be known prior to the time the
monthly severance payments may be required to commence, the Company will adjust
any future payments, if required, in good faith once Executive’s final 2016
annual bonus amount is known.

 

  

b.            
The
Company shall provide outplacement benefits to Executive from an outplacement
service provider selected by Executive for the period beginning on the
Termination Date and ending on December 31, 2017 in an amount not to exceed
$25,000.  

c.             
The
Company shall reimburse Executive for professional fees in connection with
preparation of his 2016 and 2017 tax returns up to a maximum of $2,500 annually
(or $5,000 in the aggregate).  The Company will provide such reimbursements no
later than ninety days (90) days following the Company’s receipt of supporting
documentation of incurrence of these expenses, but in any event no later than
the end of the calendar year following the calendar year in which those
expenses were incurred and otherwise in compliance with Section 409A of the
Code. 

4.       CONDITIONS OF
PAYMENTS.

a.             
If
this Agreement does not become effective and irrevocable by its terms on or
before Monday, February 13, 2017, the Company will have no obligation to make
the payments set forth in Section 3 of this Agreement.  

b.            
If
Executive violates any of his obligations, covenants or representations under
Section 5(a), 5(b), 5(c) or 5(d) of this Agreement, then (i) the Company’s
obligations to provide the payments under Section 3 of this Agreement will
immediately cease, and (ii) the Company will be entitled to obtain all other
remedies provided by law or in equity. 

5.       COVENANTS BY
EXECUTIVE.
 

a.             
Non-Competition.  As the Company’s
Executive Vice President and Chief Investment Officer, as well as through other
positions Executive may have held  with the Company and
its affiliates, Executive has obtained extensive and valuable knowledge and
information concerning the Company’s business (including confidential
information relating to the Company and its operations, intellectual property,
assets, contracts, customers, personnel, plans, marketing plans, research and
development plans and prospects).  Accordingly, for one year following the
Termination Date, Executive will not engage in any business activities on
behalf of any enterprise which competes with the Company or any of its
affiliates in the business of (i) ownership or operation of Health Care
Facilities (defined below); (ii) investment in or lending to health care
related enterprises (including, without limitation, owners or developers of
Health Care Facilities); (iii) management of Health Care Facilities; or (iv)
provision of any planning or development services for Health Care Facilities.
“Health Care Facilities” means any senior housing facilities or facilities used
or intended primarily for the delivery of health care services, including,
without limitation, any active adult communities, independent living
facilities, assisted living facilities, skilled nursing facilities, inpatient
rehabilitation facilities, ambulatory surgery centers, medical office
buildings, hospitals of any kind, or any similar types of facilities or
projects.  The Executive will be deemed to be engaged in such competitive
business activities if he participates in such a business enterprise as an
employee, officer, director, consultant, agent, partner, proprietor, or other
participant; provided that the ownership of no more than two percent (2%) of the
stock of a publicly traded corporation engaged in a competitive business shall
not be deemed to be engaging in competitive business activities. Executive
hereby represents and warrants that he has not breached any of his obligations
under Section 10 of his Employment Agreement.  

b.            
Non-Solicitation. For the later of one year
following the Termination Date or the expiration of any period during which
Executive is receiving monthly severance benefits under Section 3(a) of this
Agreement, Executive will be prohibited, to the fullest extent allowed by
applicable law, from directly or indirectly, individually or on behalf of
persons or entities not now parties to this Agreement, encouraging, inducing,
attempting to induce, recruiting, attempting to recruit, soliciting or
attempting to solicit or participating in any way in hiring or retaining for
employment, contractor or consulting opportunities anyone who is employed or
providing full-time services as a consultant at that time by the Company or any
subsidiary or affiliate.  Executive hereby represents and
warrants that he has not breached any of his obligations under Section 10 of
his Employment Agreement.

c.             
Protection
of Confidential Information. Executive hereby agrees that, during his
employment with the Company and thereafter, he shall not, directly or
indirectly, disclose or make available to any person, firm, corporation,
association or other entity for any reason or purpose whatsoever, any
Confidential Information (as defined below).  Executive further agrees that,
upon the Termination Date, all Confidential Information in his possession that
is in written or other tangible form shall be returned to the Company and shall
not be retained by Executive or furnished to any third party, in any form
except as provided herein.  Notwithstanding the foregoing, this Section 5(c)
shall not apply to Confidential Information that (i) was publicly known at the
time of disclosure to Executive, (ii) becomes publicly known or available
thereafter other than by any means in violation of this Agreement or any other
duty owed to the Company by Executive, (iii) is lawfully disclosed to Executive
by a third party, or (iv) is required to be disclosed by law or by any court,
arbitrator or administrative or legislative body with actual or apparent
jurisdiction to order Executive to disclose or make accessible any information
or is voluntarily disclosed by Executive to law enforcement or other
governmental 

 

  

authorities.  Furthermore, in accordance
with the Defend Trade Secrets Act of 2016, Executive will not be held
criminally or civilly liable under any federal or state trade secret law for
the disclosure of a trade secret that (x) is made (i) in confidence to a
federal, state or local government official, either directly or indirectly, or
to an attorney; and (ii) solely for the purpose of reporting or investigating a
suspected violation of law; or (y) is made in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal. As
used in this Agreement, Confidential Information means, without limitation, any
non-public confidential or proprietary information disclosed to Executive or
known by Executive as a consequence of or through Executive’s relationship with
the Company, in any form, including electronic media.  Confidential Information
also includes, but is not limited to the Company’s business plans and financial
information, marketing plans, and business opportunities. Nothing herein shall
limit in any way any obligation Executive may have relating to Confidential
Information under any other agreement or promise to the Company.  Executive hereby represents and warrants that he has not
breached any of obligations under Section 9 of his Employment Agreement.  

d.            
Non-Disparagement.  Executive will not make
or direct anyone else to make on Executive’s behalf any disparaging or
untruthful remarks or statements, whether oral or written, about the Company,
its operations or its products, services, affiliates, officers, directors,
employees, or agents, or issue any communication that reflects adversely on or
encourages any adverse action against the Company.  Executive will not make any
direct or indirect written or oral statements to the press, television, radio
or other media or other external persons or entities concerning any matters
pertaining to the business and affairs of the Company, its affiliates or any of
its officers or directors.  The Company agrees not to make, and shall direct its
officers and senior executives not to make on its behalf, any disparaging or
untruthful remarks or statements about Executive’s employment with the Company
following the Termination Date.  The restrictions described in this paragraph
shall not apply to any truthful statements made in response to a subpoena or
other compulsory legal process or to law enforcement or other governmental
authorities.

e.             
Return of Company Property.  On or before the
Termination Date, or as soon as administratively practicable thereafter,
Executive shall have returned to the Company all hard and soft copies of
records, lists, books, documents, materials, software, and files in his
possession or control, whether recorded, written or computer readable, which
contain or relate to Confidential Information or sensitive information obtained
by Executive in conjunction with his employment with the Company.  Executive agrees
that he will not keep any copies or excerpts of any of the above items. 

f.              
For
the avoidance of doubt, any breach of Section 5(a) through 5(e) of this
Agreement shall constitute a material breach of this Agreement.  Notwithstanding Section 8 of this Agreement, the parties
agree that damages would be an inadequate remedy for the  Company in the event of a breach or threatened breach by
Executive of any of Sections 5(a) through 5(e), inclusive.  In the event of any
such breach or threatened breach, the Company may, either with or without
pursuing any potential damage remedies and without being required to post a
bond, obtain from a court of competent jurisdiction, and enforce, an injunction
prohibiting the Executive from violating this Agreement and requiring the
Executive to comply with the terms of this Agreement.  Executive acknowledges that the Company may present this
Section 5 to any third party with which the Executive has accepted employment,
or otherwise entered into a business relationship, that the Company contends
violates this Section 5, if the Company has reason to believe Executive has or
may have breached this Agreement.  

6.       RELEASE
OF CLAIMS.  

a.             
In
exchange for the commitments of the Company as set forth in this Agreement,
which Executive acknowledges and agrees provide consideration to which
Executive would not otherwise be entitled, Executive agrees to release and
discharge unconditionally the Company and any of its past or present subsidiaries,
affiliates, related entities, predecessors, merged entities and parent
entities, benefit plans, and all of their respective past and present officers, directors, stockholders,
employees, benefit plan administrators and trustees, agents, attorneys,
insurers, representatives, affiliates, and all of their respective
successors and assigns (collectively, the “Company
Released Parties”), from any and all claims, actions, causes of action,
demands, obligations, grievances, suits, losses, debts and expenses (including
attorney’s fees and costs), damages and claims in law or in equity of any
nature whatsoever, known or unknown, suspected or unsuspected, Executive ever
had, now has, or may ever have against any Company Released Party up to and
including the day on which Executive signs this Agreement.  Without limiting
the generality of the foregoing, the claims Executive is waiving include, but
are not limited to, (a) any claims, demands, and causes of action alleging
violations of public policy, or of any federal, state, or local law, statute,
regulation, executive order, or ordinance, or of any duties or other
obligations of any kind or description arising in law or equity under federal,
state, or local law, regulation, ordinance, or public policy having any bearing
whatsoever on the terms or conditions of Executive’s employment with or by the
Company or the termination or resignation of Executive’s employment with the
Company or any association or transaction with or by the Company; (b) all
claims of discrimination or harassment on the basis of sex, race, national
origin, religion, sexual orientation, disability, veteran status or any other
legally protected category, and of retaliation; (c) all claims under Title VII
of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age
Discrimination in Employment Act, the Older Workers Benefit Protection Act, the
Fair 

 

  

Labor Standards Act, the Genetic Information
Nondiscrimination Act, 42 U.S.C. § 1981, as amended, and all other federal,
state and local fair employment and anti-discrimination laws, all as amended;
(d) all claims under the Worker Adjustment and Retraining Notification Act and
similar state and local statutes, all as amended; (e) all claims under the
National Labor Relations Act, as amended; (f) all claims under the Family and
Medical Leave Act and other federal, state and local leave laws, all as
amended; (g) all claims under the Employee Retirement Income Security Act
(except with respect to accrued vested benefits under any retirement or 401(k)
plan in accordance with the terms of such plan and applicable law); (h) all
claims under the Sarbanes-Oxley Act of 2002, the False Claims Act, the
Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities
Exchange Act of 1934, the Commodity Exchange Act, the Consumer Financial
Protection Act, the American Recovery and Reinvestment Act, the Foreign Corrupt
Practices Act, and the EU Competition Law; (i) all claims of whistleblowing and
retaliation under federal, state and local laws; (j) all claims under any
principle of common law or sounding in tort or contract; (k) all claims
concerning any right to reinstatement; and (l) all claims for attorneys’ fees,
costs, damages or other relief (monetary, equitable or otherwise), whether
under federal, state or local law, whether statutory, regulatory or common law,
to the fullest extent permitted by law.  Further, each of the persons and
entities released herein is intended to and shall be a third-party beneficiary
of this Agreement.  This release of claims does not affect or waive any claim
for workers’ compensation benefits, unemployment benefits or other legally
non-waivable rights or claims; claims that arise after Executive signs this
Agreement; Executive’s rights to indemnification or advancement of expenses
under the bylaws of the Company or under any applicable directors and officers
liability insurance policy with respect to Executive’s liability as an
employee, director or officer of the Company; Executive’s right to exercise any
and all Company stock options held by Executive that are exercisable as of the
Termination Date during the applicable period of exercise and in accordance
with all other terms of those options and the stock option plans, agreements,
and notices under which such options were granted; or Executive’s right to
enforce the terms of this Agreement.  Additionally, nothing in this Agreement
waives or limits Executive’s right to file a charge with, provide information
to or cooperate in any investigation of or proceeding brought by a government
agency (though Executive acknowledges Executive is not entitled to recover
money or other relief with respect to the claims waived in this Agreement).  

b.            
Executive
represents and warrants that he has not filed any claim, charge or complaint
against the Company or any of the released parties based upon any of the
matters released in (a) above. 

c.             
Executive
acknowledges that the commitments of the Company under this Agreement,
including the payments provided in Section 3 of this Agreement, as well as
other obligations and payments which the Company was not otherwise obligated to
make, constitute adequate consideration for the release of claims set forth in
this Section 6(a).

d.            
Executive
intends that this release of claims cover all claims described in Section 6(a)
above whether or not known to Executive.  Executive further recognizes the risk
that, subsequent to the execution of this Agreement, Executive may incur loss,
damage or injury which Executive attributes to the claims encompassed by this
release.  Executive also expressly waives and relinquishes, to the fullest
extent permitted by law, any and all rights he may have under California Civil
Code Section 1542, or the comparable provisions of the laws of any other
jurisdiction, which provides 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.”   

e.             
Executive
represents and warrants that there has been no assignment or other transfer of
any interest in any claim by Executive that is covered by the release set forth
in Section 6(a).

7.       REVIEW AND
REVOCATION OF AGREEMENT.  Executive acknowledges and agrees:  (a) that he has
read this Agreement and that he understands the terms thereof, (b) that he has
voluntarily signed this Agreement; (c) that he has been advised to consult an
attorney regarding this Agreement and the releases set forth herein; (d) that
he was given 21 days to review and consider signing this Agreement, although he
may, at his discretion, knowingly and voluntarily, sign and return the
Agreement at any earlier time, but Executive may not sign and return the Agreement
until or on after the Termination Date, (e) that modification of this Agreement
does not restart this 21 day period, (f) that Executive is waiving rights or
claims that may be waived by law in exchange for consideration that is not
otherwise due to Executive, including claims and rights under the Age
Discrimination in Employment Act of 1967, as amended (the “ADEA”), and as
otherwise described in this Agreement; (g) that rights or claims that may arise
after the date this Agreement is executed, including those arising under the
ADEA, are not waived by this Agreement; (h) that at any time within 7 days
after signing this Agreement, he may revoke the Agreement; (i) that this
Agreement is not enforceable until the revocation period has pass without a revocation. 
To revoke this Agreement, Executive must send a written statement of revocation

 

  

delivered by certified mail to Welltower Inc., Attn: 
Chief Executive Officer, 4500 Dorr Street, Toledo, OH  43615.  This revocation
must be received no later than the seventh (7th) day following
Executive’s execution of this Agreement.

8.      
ARBITRATION.  Subject to Section 5(f) hereof, all
claims, disputes, questions, or controversies arising out of or relating to
this Agreement or Executive’s employment with the Company, including without
limitation the construction or application of any of the terms, provisions, or
conditions of this Agreement and any claims for any alleged discrimination,
harassment, or retaliation in violation of any federal, state or local law,
will be resolved exclusively in final and binding arbitration held under the
auspices of Judicial Arbitration & Mediation Services, Inc. (“JAMS”) in
accordance with JAMS then current Employment Arbitration Rules and Procedures,
or successor rules then in effect. The arbitration will be held in New York,
New York, and will be conducted and administered by JAMS or, in the event JAMS
does not then conduct arbitration proceedings, a similarly reputable
arbitration administrator. Executive and the Company will select a mutually
acceptable, neutral arbitrator from among the JAMS panel of arbitrators. 
Except as provided by this Agreement, the Federal Arbitration Act will govern
the administration of the arbitration proceedings. The arbitrator will apply
the substantive law (and the law of remedies, if applicable) of the State of
Ohio, or federal law, if Ohio law is preempted, and the arbitrator is without
jurisdiction to apply any different substantive law. Executive and the Company
will each be allowed to engage in adequate discovery, the scope of which will
be determined by the arbitrator consistent with the nature of the claim[s] in
dispute. The arbitrator will have the authority to entertain a motion to
dismiss and/or a motion for summary judgment by any party and will apply the
standards governing such motions under the Federal Rules of Civil Procedure.
The arbitrator will render a written award and supporting opinion that will set
forth the arbitrator’s findings of fact and conclusions of law. Judgment upon
the award may be entered in any court of competent jurisdiction. The Company
will pay the arbitrator’s fees, as well as all administrative fees, associated
with the arbitration. Each party will be responsible for paying its own
attorneys’ fees and costs (including expert witness fees and costs, if any),
provided, however, that the arbitrator may award attorney’s fees and costs to
the prevailing party, except as prohibited by law. The existence and subject
matter of all arbitration proceedings, including, any settlements or awards
there under, shall remain confidential. In entering into this Agreement, both
parties are waiving the right to a trial by judge or jury.

9.       SECTION 409A.

a.             
This
Agreement is intended to comply with Section 409A of the Code and will be
interpreted in a manner intended to comply with Code Section 409A.  Any
provision that would cause this Agreement or any payment hereof to fail to
satisfy Code Section 409A of the Code shall have no force or effect until
amended to the minimum extent required to comply with Code Section 409A, which
amendment may be retroactive to the extent permitted by Code Section 409A.  A
termination of employment shall not be deemed to have occurred for purposes of
any provision of this Agreement providing for the payment of amounts or
benefits that may be considered “deferred compensation” under Code Section 409A
(after taking into account all exclusions applicable to such payments or
benefits under Code Section 409A) upon or following a termination of employment
unless such termination is also a “Separation from Service” within the meaning
of Code Section 409A and, for purposes of any such provision of this Agreement,
references to a “retirement,” “termination,” “termination of employment” or
like terms shall mean Separation from Service.  

b.            
Any
payment scheduled to be made under this Agreement that may be considered
“deferred compensation” under Code Section 409A (after taking into account all
exclusions applicable to such payments or benefits under Code Section 409A),
that are otherwise due on or within the six-month period following the
Termination Date will accrue during such six-month period and will instead
become payable in a lump sum payment on the first business day period following
such six-month period.  Furthermore, if any other payments of money or other
benefits due to Executive under this Agreement could cause the application of
an accelerated or additional tax under Code Section 409A, such payments or
other benefits shall be deferred if deferral will make such payment or other
benefits compliant under Code Section 409A, or otherwise such payment or other
benefits shall be restructured, to the extent possible, in a manner, determined
by the Company, that does not cause such an accelerated or additional tax.  To
the extent any reimbursements or in-kind benefits due to Executive under this
Agreement constitute “deferred compensation” under Code Section 409A (after
taking into account all exclusions applicable to such payments or benefits
under Section 409A), any such reimbursements or in-kind benefits shall be paid
to Executive in a manner consistent with Treas. Reg. Section
1.409A-3(i)(1)(iv).   

c.             
  Notwithstanding
any contrary provision herein, Executive’s right to any payment (including each
installment payment) under this Agreement shall be treated as a “separate
payment” within the meaning of Code Section 409A.    

d.            
The
Company shall consult with Executive in good faith regarding the implementation
of the provisions of this section; provided that neither the Company nor any of
its employees or representatives shall have any liability to Executive with
respect thereto.

 

  

10.    NO ADMISSION OF
LIABILITY.  Nothing
in this Agreement will constitute or be construed in any way as an admission of
any liability or wrongdoing whatsoever by the Company or Executive. 

11.    PAYMENT OF
SALARY AND RECEIPT OF ALL BENEFITS.  Executive acknowledges and represents
that, other than the consideration set forth in this Agreement, the Company has
paid or provided all salary, wages, bonuses, accrued vacation, PTO, premiums,
leaves, housing allowances, relocation costs, interest, severance, outplacement
costs, fees, reimbursable expenses, commissions, stock, stock options, vesting,
and any and all other benefits and compensation due to Executive. 

12.    INTEGRATED AGREEMENT. 
This
Agreement is intended by the parties to be a complete and final expression of
their rights and duties respecting the subject matter of this Agreement and
supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto, and any prior
agreement of the parties hereto in respect of the subject matter contained
herein, including but not limited to the Employment Agreement, except as
expressly set forth herein. Except as expressly provided herein, nothing in
this Agreement is intended to negate Executive’s agreement to abide by the
Company’s policies while serving as an employee of the Company (or thereafter
to the extent provided by such policies), including but not limited to the
Company’s Code of Business Conduct and Ethics and its Employee Handbook, or any
other agreement governing the disclosure and/or use of proprietary information,
which Executive signed while working with the Company or its predecessors; nor
to waive any of Executive’s obligations under state and federal trade secret
laws. 

13.    LEGAL FEES.  The Company
shall reimburse Executive up to $15,000, in the aggregate, for Executive’s
reasonable attorney’s fees and expenses incurred in connection with negotiating
and documenting this Agreement.  The Company will provide such reimbursements
no later than ninety days (90) days following the Company’s receipt of
supporting documentation of incurrence of these expenses, but in any event no
later than the end of the calendar year following the calendar year in which
those expenses were incurred and otherwise in compliance with Section 409A of
the Code. 

14.    TAXES AND OTHER
WITHHOLDINGS.  Notwithstanding
any other provision of this Agreement, the Company may withhold from amounts
payable hereunder all federal, state, local and foreign taxes and other amounts
that are required to be withheld by applicable laws or regulations, and the
withholding of any amount shall be treated as payment thereof for purposes of
determining whether Executive has been paid amounts to which he is entitled. 
Executive acknowledges that (i) the Company has made no representation to
Executive as to the tax treatment of any compensation or benefits to be paid to
Executive under this Agreement and (ii) the Company has no obligation to
“gross-up” any amount payable to Executive under this Agreement for taxes
payable by Executive thereon.

15.    SURVIVAL.  The
covenants, agreements, representations and warranties contained in or made in
Section 4, 5, 6, 7, 8, 10, 11, 12 and this Section 15 of this Agreement shall
survive any termination of this Agreement.  

16.    WAIVER.  Neither party
shall, by mere lapse of time, without giving notice or taking other action hereunder,
be deemed to have waived any breach by the other party of any of the provisions
of this Agreement. Further, the waiver by either party of a particular breach
of this Agreement by the other shall neither be construed as, nor constitute, a
continuing waiver of such breach or of other breaches of the same or any other
provision of this Agreement. 

17.    MODIFICATION.  This Agreement
may not be modified or terminated unless such modification or termination is
embodied in writing, signed by the party against whom the modification is to be
enforced.

18.    NOTICE.  Except as
otherwise expressly provided in this Agreement, any notice to either party
hereunder shall be in writing and sent by overnight courier, certified mail, or
registered mail (return receipt requested), postage prepaid, addressed as
follows (or to such other address as such party may designate in writing from
time to time): 

If to the
Company:

Welltower Inc. 

4500 Dorr Street

Toledo, OH 
43615

Attention: 
Legal Department

 

                If to the Executive, at the address
on file with the Company’s Human Resources   Department. 

 

  

                The
actual date of mailing, as shown by a mailing receipt therefor, shall determine
the time at which notice was given. 

19.    ASSIGNMENT AND
SUCCESSORS.   The
Company shall
have the right to assign its rights and obligations under this Agreement to an
entity that, directly or indirectly, acquires all or substantially all of the
assets or the business of the Company.  The rights and obligations of the
Company under this Agreement shall inure to the benefit and shall be binding
upon the successors and assigns of the Company. Executive shall not have any
right to assign his obligations under this Agreement and shall only be entitled
to assign his rights under this Agreement upon his death, solely to the extent
permitted by this Agreement, or as otherwise agreed to by the Company.

20.    SEVERABILITY.  Each provision
of this Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Agreement is held to
be prohibited by or invalid under applicable law, such provision will be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement. Moreover, if any of the provisions contained in this Agreement
is determined by an arbitrator or court of competent jurisdiction to be
unenforceable because it is excessively broad in scope, whether as to duration,
activity, geographic application, subject or otherwise, it shall be construed,
by limiting or reducing it to the extent legally permitted, so as to be
enforceable to the extent compatible with then applicable law in order to
achieve the intent of the parties.

21.    GOVERNING LAW.  This Agreement
will be construed, interpreted, governed and enforced in accordance with the
laws of the State of Ohio, without regard to its conflict of laws principles. 

22.    COUNTERPARTS.   This Agreement
may be executed in counterparts and delivered by means of facsimile or portable
document format (PDF), each of which when so executed and delivered shall be an
original, but all such counterparts together shall constitute one and the same
instrument.  

[Signature Page Follows] 

 

  

IN WITNESS WHEREOF, the Company has caused
this Agreement to be duly executed, and the Executive has hereunto set his
hand, effective as of the day and year first written above.

WELLTOWER INC.                                                           EXECUTIVE

                                                                       
 

By: /s/ Matthew McQueen                           
                 /s/
Scott M. Brinker                                                 

Name:    
Matthew McQueen                                            Scott M. Brinker

Title:  Senior Vice
President,

General Counsel and Corporate Secretary

 

Date: February 10,
2017                                                       Date: February
10, 2017                                       

	
    

  	
   

   

  
	
  

    

  	
  

  

   

    

  

 

 

  

ATTACHMENT A

EXISTING EQUITYAWARDS

 

EXISTING EQUITY
AWARDS WITH TIME-BASED VESTING

1)  Restricted
Stock

	
  Date of Agreement

  	
  Initial
  Award

  	
  Unvested
  Shares as of Date of Agreement to be fully vested

  
	
  January 26, 2012

  	
  10,466

  	
  2,093

  
	
  February 7, 2013

  	
  26,099

  	
  10,439

  
	
  February 6, 2014

  	
  9,893

  	
  2,473

  
	
  February 5, 2015

  	
  11,729

  	
  5,864

  
	
  February 12, 2016

  	
  15,569

  	
  11,676

  
	
  February 26, 2016

  	
  43,068

  	
  14,356

  
	
  TOTAL

  	
  46,901

  

2)  Deferred Stock Units

	
  Date of Agreement

  	
  Initial
  Award

  	
  Unvested
  Shares as of Date of Agreement to be fully vested

  
	
  January 26, 2012

  	
  6,977

  	
  1,744

  
	
  TOTAL

  	
  1,744

  

 3)  Deferred Stock Units – Dividend Equivalents

Accrued dividends on accelerated deferred stock
units from 1/26/12 through 1/3/2017 = $27,799.36 

4) Stock Options

	
  Date of Agreement

  	
  Initial Grant

  	
  Exercise Price

  	
  Maximum Expiration
  Date

  	
  Options Outstanding

  	
  Unvested Options as
  of Date of Agreement to be fully vested

  
	
  January 28, 2010

  	
  3,996

  	
  $43.29

  	
  January
  28, 2020

  	
  1,745

  	
  0

  
	
  January 27, 2011

  	
  5,208

  	
  $49.17

  	
  January
  27, 2021

  	
  2,338

  	
  0

  
	
  January 26, 2012

  	
  18,002

  	
  $57.33

  	
  January
  26, 2022

  	
  4,699

  	
  3,600

  
	
  TOTAL

  	
  8,782

  	
  3,600

  

 

 

  

All
outstanding stock options listed above are exercisable on or before April 3,
2017.  

EXISTING
EQUITY AWARDS WITH PERFORMANCE-BASED VESTING

1) 3-Year
LTIP Shares

Pro
rata payment in shares for any award earned under the 2015-2017 Long-Term
Incentive Program and the 2016-2018 Long-Term Incentive Program based on
Company performance as of December 31, 2016, determined and prorated in
accordance with the terms of the respective program. 

2) 3-Year
LTIP – Dividend Accrual

The value of
accrued dividend equivalents on shares to be issued under the 2015-2017
Long-Term Incentive Program and the 2016-2018 Long-Term Incentive Program from
the beginning of each of the performance periods through January 3, 2017 in
accordance with the terms of the respective program.

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