Document:

Form of Note for the Company's Floating Rate Notes due August 2, 2021

 Exhibit 4.01 

This Note is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depository
named below or a nominee of the Depository. This Note is not exchangeable for Notes registered in the name of a Person other than the Depository or its nominee except in the limited circumstances described herein and in the Indenture, and no
transfer of this Note (other than a transfer of this Note as a whole by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository) may be registered except in the limited
circumstances described herein. 
 Unless this certificate is presented by an authorized representative of The Depository Trust Company, a
New York corporation (the “Depository”), to the Company or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of the Depository (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of the Depository), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 
  

			
	 CITIGROUP INC.

Floating Rate Notes due August 2, 2021
  

	 REGISTERED
	  	REGISTERED        
		
		  	CUSIP: 172967KW0.            
		  	ISIN: US172967KW08            
		  	Common Code: 146494927            
		
	 No. R-00*
	  	$500,000,000            

 CITIGROUP INC., a Delaware corporation (the “Company”, which term includes any successor Person
under the Indenture), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of $500,000,000 on August 2, 2021 and to pay interest thereon from and including August 2, 2016 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, quarterly, on the second day of each February, May, August, and November commencing November 2, 2016, at the rate per annum for each Interest Period of three-month LIBOR,
determined as provided herein, plus 1.190% until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid
to the Person in whose name this Note is registered at the close of business on the Record Date for such interest, which shall be the Business Day immediately preceding such Interest Payment Date. 

Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the holder on such Record Date and may
either be paid to the Person in whose name this Note is registered at the close of business on a subsequent Record Date, such subsequent Record Date to be not less than ten days prior to the date of payment of such defaulted interest, notice whereof
shall be given to holders of Notes of this series not less than ten days prior to such subsequent Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes of
this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

 Interest hereon will be calculated on the basis of the actual number of days elapsed in an
Interest Period and a 360-day year. Dollar amounts resulting from such calculation will be rounded to the nearest cent, with one-half cent being rounded upward. An “Interest Period” shall be the period from and including an Interest
Payment Date (or from August 2, 2016 in the case of the first Interest Payment Date) to and including the day immediately preceding the next Interest Payment Date. 

If an Interest Payment Date falls on a day that is not a Business Day, such Interest Payment Date will be the next succeeding Business Day. If
the Maturity of the Notes falls on a day that is not a Business Day, the payment due on Maturity will be postponed to the next succeeding Business Day, and no further interest will accrue in respect of such postponement. If a date for payment of
interest or principal on the Notes falls on a day that is not a business day in the place of payment, such payment will be made on the next succeeding business day in such place of payment as if made on the date the payment was due. No interest will
accrue on any amounts payable for the period from and after the due date for payment of such principal or interest. 
 For these purposes,
“Business Day” means any day which is a day on which commercial banks settle payments and are open for general business in The City of New York. 

Payment of the principal of and interest on this Note will be made at the office or agency of the Trustee maintained for that purpose in The
City of New York. 
 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has
been executed by the Trustee or by an authenticating agent on behalf of the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 2 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 
 Dated: August 2, 2016 
  

			
	CITIGROUP INC.
		
	By:	 	  

	Name:	 	Joseph Bonocore
	Title:	 	Deputy Treasurer

  

			
	ATTEST:
		
	By:	 	  

	Name:	 	Barbara Politi
	Title:	 	Assistant Secretary

  
 3 

 This is one of the Notes of the series issued under the within-mentioned Indenture. 

Dated: August 2, 2016 
  

			
	THE BANK OF NEW YORK MELLON,
	as Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	-or-
	
	CITIBANK, N.A.,
	as Authenticating Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 4 

 This Note is one of a duly authorized issue of Securities of the Company (the “Notes”),
issued and to be issued in one or more series under the Indenture, dated as of November 13, 2013 (as amended and supplemented from time to time, the “Indenture”), between the Company and The Bank of New York Mellon, as Trustee (the
“Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof, initially
limited in aggregate principal to $750,000,000. 
 This Note will bear interest for each Interest Period at a rate determined by Citibank,
N.A., acting as Calculation Agent. The interest rate on this Note for a particular Interest Period will be a per annum rate equal to three-month LIBOR as determined on the related Interest Determination Date, plus 1.190% The Interest Determination
Date for an Interest Period will be the second London business day preceding such Interest Period. The Interest Determination Date for the first Interest Period was July 29, 2016. Promptly upon determination, the Calculation Agent will inform the
Trustee and the Company of the interest rate for the next Interest Period. Absent manifest error, the determination of the interest rate by the Calculation Agent shall be binding and conclusive on the holders of Notes, the Trustee and the Company.

 A London business day is a day on which dealings in deposits in U.S. dollars are transacted in the London interbank market. 

On any Interest Determination Date, LIBOR will be equal to the offered rate for deposits in U.S. dollars having an index maturity of three
months for the next Interest Period, in amounts of at least $1,000,000, as such rate appears on Reuters Screen LIBOR01 at approximately 11:00 a.m., London time, on such Interest Determination Date. If the Reuters Screen LIBOR01 is replaced by
another service or ceases to exist, the Calculation Agent will use the replacing service or such other service that is selected to display the London interbank offered rates for U.S. dollar deposits. 

If no offered rate appears on Reuters Screen LIBOR01 on an Interest Determination Date at approximately 11:00 a.m., London time, then the
Calculation Agent (after consultation with the Company) will select four major banks in the London interbank market and shall request each of their principal London offices to provide a quotation of the rate at which three-month deposits in U.S.
dollars in amounts of at least $1,000,000 are offered by it to prime banks in the London interbank market, on that date and at that time, that is representative of single transactions at that time. If at least two quotations are provided, LIBOR
will be the arithmetic average of the quotations provided. Otherwise, the Calculation Agent will select three major banks in New York City and shall request each of them to provide a quotation of the rate offered by them at approximately 11:00
a.m., New York City time, on the Interest Determination Date for loans in U.S. dollars to leading European banks having an index maturity of three months for the applicable Interest Period in an amount of at least $1,000,000 that is representative
of single transactions at that time. If three quotations are provided, LIBOR will be the arithmetic average of the quotations provided. Otherwise, the rate of LIBOR for the next Interest Period will be set equal to the rate of LIBOR for the current
Interest Period. 

  
 5 

 Upon request from any Noteholder, the Calculation Agent will provide the interest rate in effect
on this Note for the current Interest Period and, if it has been determined, the interest rate to be in effect for the next Interest Period. 

If an event of default (as defined in the Indenture) with respect to Notes of this series shall occur and be continuing, the principal of the
Notes of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 Sections 12.02 and
12.03 of the Indenture containing provisions for defeasance apply to this Note. At any time the entire indebtedness of this Note may be defeased upon compliance by the Company with certain conditions set forth in Section 12.04 of the Indenture.

 The Indenture contains provisions permitting the Company and the Trustee, without the consent of the holders of the Securities, to
establish, among other things, the form and terms of any series of Securities issuable thereunder by one or more supplemental indentures, and, with the consent of the holders of a majority in aggregate principal amount of Securities at the time
outstanding which are affected thereby, to modify the Indenture or any supplemental indenture or the rights of the holders of Securities of such series to be affected, provided that no such modification will (i) extend the fixed maturity of any
Securities, reduce the rate or extend the time of payment of interest thereon, reduce the principal amount thereof or the premium, if any, thereon, reduce the amount of the principal of Original Issue Discount Securities payable on any date, change
the currency in which Securities are payable, or impair the right to institute suit for the enforcement of any such payment on or after the maturity thereof, without the consent of the holder of each Security so affected, or (ii) reduce the
aforesaid percentage of Securities of any series the consent of the holders of which is required for any such modification without the consent of the holders of all Securities of such series then outstanding, or (iii) modify the rights, duties or
immunities of the Trustee unless the Trustee agrees to such modification. 
 No reference herein to the Indenture and no provision of this
Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed. 

This Note is a Global Security registered in the name of a nominee of the Depository. This Note is exchangeable for Notes registered in the
name of a person other than the Depository or its nominee only in the limited circumstances hereinafter described. Unless and until it is exchanged in whole or in part for definitive Notes in certificated form, this Note may not be transferred
except as a whole by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository. 

  
 6 

 The Notes represented by this Global Security are exchangeable for definitive Notes in
certificated form of like tenor as such Notes in denominations of $1,000 and whole multiples of $1,000 in excess thereof only if (i) the Depository notifies the Company that it is unwilling or unable to continue as Depository for the Notes and
the Company is unable to appoint a successor depository or (ii) the Depository ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, or (iii) the Company in its sole discretion decides to allow the Notes to
be exchanged for definitive Notes in registered form. Any Notes that are exchangeable pursuant to the preceding sentence are exchangeable for certificated Notes issuable in authorized denominations and registered in such names as the Depository
shall direct. As provided in the Indenture and subject to certain limitations therein set forth, the transfer of definitive Notes in certificated form is registrable in the register maintained by the Company in The City of New York for such purpose,
upon surrender of the definitive Note for registration of transfer at the office or agency of the registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the registrar duly executed by,
the holder thereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee
or transferees. Subject to the foregoing, this Note is not exchangeable, except for a Global Security or Global Securities of this issue of the same principal amount to be registered in the name of the Depository or its nominee. 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Note for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee
nor any such agent shall be affected by notice to the contrary. 
 The Company will pay additional amounts (“Additional Amounts”)
to the beneficial owner of any Note that is a non-United States person in order to ensure that every net payment on such Note will not be less, due to payment of U.S. withholding tax, than the amount then due
and payable. For this purpose, a “net payment” on a Note means a payment by the Company or a paying agent, including payment of principal and interest, after deduction for any present or future tax, assessment or other governmental
charge of the United States. These Additional Amounts will constitute additional interest on the Note. 
 The Company will not be required
to pay Additional Amounts, however, in any of the circumstances described in items (1) through (14) below. 
  

	 	(1)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner:

  

	 	(a)	having a relationship with the United States as a citizen, resident or otherwise; 

  

	 	(b)	having had such a relationship in the past or 

  
 7 

	 	(c)	being considered as having had such a relationship. 

  

	 	(2)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner:

  

	 	(a)	being treated as present in or engaged in a trade or business in the United States; 

  

	 	(b)	being treated as having been present in or engaged in a trade or business in the United States in the past or 

  

	 	(c)	having or having had a permanent establishment in the United States. 

  

	 	(3)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld in whole or in part by reason of the beneficial owner
being or having been any of the following (as such terms are defined in the Internal Revenue Code of 1986, as amended): 

  

	 	(a)	personal holding company; 

  

	 	(b)	foreign private foundation or other foreign tax-exempt organization; 

  

	 	(c)	passive foreign investment company; 

  

	 	(d)	controlled foreign corporation or 

  

	 	(e)	corporation which has accumulated earnings to avoid United States federal income tax. 

  

	 	(4)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner owning or
having owned, actually or constructively, 10 percent or more of the total combined voting power of all classes of stock of the Company entitled to vote or by reason of the beneficial owner being a bank that has invested in a Note as an extension of
credit in the ordinary course of its trade or business. 

 For purposes of items (1) through (4) above, “beneficial owner” means a
fiduciary, settlor, beneficiary, member or shareholder of the holder if the holder is an estate, trust, partnership, limited liability company, corporation or other entity, or a person holding a power over an estate or trust administered by a
fiduciary holder. 
  

	 	(5)	Additional Amounts will not be payable to any beneficial owner of a Note that is a: 

  

	 	(a)	fiduciary; 

  

	 	(b)	partnership; 

  

	 	(c)	limited liability company or 

  

	 	(d)	other fiscally transparent entity 

  
 8 

	 	
or that is not the sole beneficial owner of the Note, or any portion of the Note. However, this exception to the obligation to pay Additional Amounts will only apply to the extent that a
beneficiary or settlor in relation to the fiduciary, or a beneficial owner or member of the partnership, limited liability company or other fiscally transparent entity, would not have been entitled to the payment of an Additional Amount had the
beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment. 

  

	 	(6)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the failure of the beneficial
owner or any other person to comply with applicable certification, identification, documentation or other information reporting requirements. This exception to the obligation to pay Additional Amounts will only apply if compliance with such
reporting requirements is required by statute or regulation of the United States or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge.

  

	 	(7)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is collected or imposed by any method other than by withholding from a
payment on a Note by the Company or a paying agent. 

  

	 	(8)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld by reason of a change in law, regulation, or
administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs later. 

  

	 	(9)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld by reason of the presentation by the beneficial owner
of a Note for payment more than 30 days after the date on which such payment becomes due or is duly provided for, whichever occurs later. 

  

	 	(10)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any: 

  

	 	(a)	estate tax; 

  

	 	(b)	inheritance tax; 

  

	 	(c)	gift tax; 

  

	 	(d)	sales tax; 

  

	 	(e)	excise tax; 

  

	 	(f)	transfer tax; 

  

	 	(g)	wealth tax; 

  
 9 

	 	(h)	personal property tax or 

  

	 	(i)	any similar tax, assessment, withholding, deduction or other governmental charge. 

  

	 	(11)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment, or other governmental charge required to be withheld by any paying agent from a payment of principal or
interest on a Note if such payment can be made without such withholding by any other paying agent. 

  

	 	(12)	Additional amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is required to be made pursuant to any European Union directive on the
taxation of savings income or any law implementing or complying with, or introduced to conform to, any such directive. 

  

	 	(13)	Additional amounts will not be payable if a payment on a Note is reduced as a result of any withholding, deduction, tax, duty assessment or other governmental charge that would not have been imposed but for a failure by
the holder or beneficial owner of a Note (or any financial institution through which the holder or beneficial owner holds the Note or through which payment on the Note is made) to take any action (including entering into an agreement with the
Internal Revenue Service, or a governmental authority of another jurisdiction if the holder is entitled to the benefits of an intergovernmental agreement between that jurisdiction and the United States) or to comply with any applicable
certification, documentation, information or other reporting requirement or agreement concerning accounts maintained by the holder or beneficial owner (or any such financial institution), or concerning ownership of the holder or beneficial owner, or
any substantially similar requirement or agreement. 

  

	 	(14)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any combination of items (1) through (13) above. 

Except as specifically provided herein, the Company will not be required to make any payment of any tax, assessment or other governmental
charge imposed by any government or a political subdivision or taxing authority of such government. 
 As used in this Note, “United
States person” means: 
  

	 	(a)	any individual who is a citizen or resident of the United States; 

  

	 	(b)	any corporation, partnership or other entity created or organized in or under the laws of the United States; 

  

	 	(c)	any estate if the income of such estate falls within the federal income tax jurisdiction of the United States regardless of the source of such income and 

 

	 	(d)	 any trust if (i) a United States court is able to exercise primary supervision over its administration and one or
more United States persons have the authority to control 

  
 10 

	 	
all of the substantial decisions of the trust or (ii) it has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person.

 Additionally, “non-United States person” means a person who is not a
United States person, and “United States” means the states of the United States of America and the District of Columbia, but excluding its territories and its possessions. 

Except as provided below, the Notes may not be redeemed prior to maturity. 

 

	 	(1)	The Company may, at its option, redeem the Notes if: 

  

	 	(a)	the Company becomes or will become obligated to pay Additional Amounts as described above; 

  

	 	(b)	the obligation to pay Additional Amounts arises as a result of any change in the laws, regulations or rulings of the United States, or an official position regarding the application or interpretation of such laws,
regulations or rulings, which change is announced or becomes effective on or after July 26, 2016 and 

  

	 	(c)	the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, other than substituting the obligor under the
Notes or taking any action that would entail a material cost to the Company. 

  

	 	(2)	The Company may also redeem the Notes, at its option, if: 

  

	 	(a)	any act is taken by a taxing authority of the United States on or after July 26, 2016, whether or not such act is taken in relation to the Company or any affiliate, that results in a substantial probability that the
Company will or may be required to pay Additional Amounts as described above; 

  

	 	(b)	the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, other than substituting the obligor under the
Notes or taking any action that would entail a material cost to the Company and 

  

	 	(c)	the Company receives an opinion of independent counsel to the effect that an act taken by a taxing authority of the United States results in a substantial probability that the Company will or may be required to pay the
Additional Amounts described above, and delivers to the Trustee a certificate, signed by a duly authorized officer, stating that based on such opinion the Company is entitled to redeem the Notes pursuant to their terms. 

Any redemption of the Notes as set forth in clauses (1) or (2) above shall be in whole, and not in part, and will be made at a redemption price equal to 100%
of the principal amount of the Notes Outstanding plus accrued interest thereon to the date of redemption. Holders shall be given not less than 30 days’ nor more than 60 days’ prior notice by the Trustee of the date fixed for such
redemption. 

  
 11 

 All terms used in this Note which are defined in the Indenture shall have the meanings assigned
to them in the Indenture. The Notes are governed by the laws of the State of New York. 

  
 12 

 Schedule 1 

Redemptions and Amount of Securities 
  

													
	 Date of partial

redemption
	  	Aggregate principal amount
of Securities then redeemed	 	  	Remaining principal
amount of this Global
Security	 	  	Authorized Signature	 
		  				  				  			
		  				  				  			
		  				  				  			
		  				  				  			
		  				  				  			
		  				  				  			

  
 13Exhibit

Exhibit 10.1
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(Scott D. Peters)
This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is entered into and effective as of July 8, 2016 (the “Effective Date”), by and between Healthcare Trust of America, Inc., a Maryland corporation (the “Company”), and Scott D. Peters (the “Executive”). 
WHEREAS, the parties had previously entered into that certain employment agreement dated as of January 3, 2013, and amended as of December 3, 2014 (the “Existing Agreement”) which set forth the employment arrangement of the Executive with the Company.
WHEREAS, the parties hereto wish to supersede and replace the Existing Agreement and enter into the arrangements set forth herein with respect to the terms and conditions of the Executive’s continued employment with the Company from and after the Effective Date.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
SECTION 1 
EMPLOYMENT AGREEMENT
This Agreement shall supersede and replace the Existing Agreement as of the Effective Date, which shall be of no further force and effect as of the Effective Date.  On the terms and conditions set forth in this Agreement, the Company agrees to employ the Executive, and the Executive agrees to be employed by the Company, for the Employment Period set forth in Section 2 and in the positions and with the duties set forth in Section 3.  Terms used herein with initial capitalization are defined in Section 11. 
SECTION 2 
EMPLOYMENT PERIOD
Unless earlier terminated pursuant to Section 7 hereof, the term of this Agreement and the Executive’s employment hereunder shall begin as of the Effective Date and shall conclude on the fourth (4th) anniversary of the Effective Date (the “Expiration Date”).  The period of the Executive’s employment under this Agreement is herein referred to as the “Employment Period.”  For purposes of clarity, as provided in Section 8.7 hereof, a termination of the Executive’s employment upon or following the Expiration Date shall not constitute either a termination of the Executive’s employment by the Company without “Cause” or grounds for a termination by the Executive for “Good Reason” for purposes of this Agreement.  If the Company intends to make an offer to renew this Agreement for any period beyond the Expiration Date, the Company shall use reasonable efforts to provide the Executive notice of such intention at least ninety (90) days before the Expiration Date; provided, however, that in no event shall the Company be legally obligated to provide such notice and neither the provision of such notice nor any failure to provide such notice shall create any implied obligation to renew this Agreement. 
SECTION 3 
POSITION AND DUTIES; BOARD SERVICE
3.1    Position and Duties.  The Executive shall serve as President and Chief Executive Officer of the Company during the Employment Period.  As President and Chief Executive Officer of the Company, the Executive shall render executive, policy and other management services to the Company of the type customarily performed by persons serving in a similar capacity and as reasonably determined by the Board with regard to the Executive’s status 

1

 

and position within the Company.  The Company shall provide the Executive with all necessary authority and resources to discharge the Executive’s responsibilities under laws and regulations applicable to the Company and the Executive.
3.2    Nomination for Election to the Board.  Provided that the Executive is in compliance with the material terms of this Agreement, the Board shall nominate the Executive to serve on the Board every year during the Employment Period, and the Executive shall serve on the Board as the Chairman of the Board; provided, however, that the Executive’s service on the Board shall be subject to election by the Company’s stockholders.
3.3    Reporting.  The Executive shall report directly to the Board.  The Executive shall not be required to take direction from or report to any other person.  
3.4    Commitment; Outside Interests.  The Executive shall devote the Executive’s good faith efforts and full business time to the performance of the Executive’s duties hereunder and the advancement of the business and affairs of the Company during the Employment Period.  It is understood that the Executive may, consistent with the other provisions of this Agreement, pursue other outside interests, including, but not limited to, devoting time to (A) serving on corporate, civic or charitable boards or committees, (B) delivering lectures, fulfilling speaking engagements or teaching at educational institutions, and (C) managing the Executive’s personal investments, so long as such activities do not interfere with the performance of Executive’s responsibilities as President and Chief Executive Officer of the Company in accordance with this Agreement.
SECTION 4 
PLACE OF PERFORMANCE
During the Employment Period, the Executive’s primary place of employment and work location shall be Scottsdale, Arizona (except as the Executive and the Board shall otherwise mutually agree in writing), except for reasonable travel on Company business and as otherwise consented to by the Executive, in the Executive’s sole discretion. 
SECTION 5 
COMPENSATION
5.1    Base Salary.  During the Employment Period, the Company shall pay to the Executive an annual base salary (the “Base Salary”), which initially shall be $900,000.00. The Base Salary shall be reviewed by the Compensation Committee of the Board (the “Compensation Committee”) no less frequently than annually and may be increased (but not decreased) at the discretion of the Compensation Committee.  If the Executive’s Base Salary is increased, the increased amount shall be the Base Salary for the remainder of the Employment Period.  The Base Salary shall be payable semi-monthly or in such other installments as shall be consistent with the Company’s payroll procedures in effect from time to time.
5.2    Annual Bonus.  During the Employment Period, the Executive shall be eligible to earn an annual performance bonus in an amount determined in the sole discretion of the Compensation Committee for each year, with a target of 200% of the Base Salary (the “Target Bonus”).  It is the intention of the parties hereto that the Company shall establish bonus parameters for the Executive with respect to each fiscal year of the Employment Period. The Executive acknowledges and agrees that the Executive’s annual bonus is not guaranteed at any level but, rather, it is to be determined solely by the Compensation Committee, in its sole discretion. The Compensation Committee shall establish the performance goals and objectives on which the Executive’s annual bonus shall be based.  
5.3    Equity Compensation.
(a)    Prior Grants.  The Executive has previously received equity incentive awards from the Company that are outstanding as of the Effective Date (the “Prior Grants”).  The Prior Grants shall vest in the time and manner set forth in the documents evidencing such Prior Grants.  The Prior Grants were made pursuant to, and shall remain subject to, the terms and conditions of the Company’s Amended and Restated 2006 Incentive Plan (the “Plan”), as in effect on the dates of such Prior Grants, and the applicable award agreement.  

2

 

(b)    New Restricted Stock Grant.  Subject to the approval of the Compensation Committee and the conditions and restrictions herein, within thirty (30) days after the Effective Date, the Company shall grant to the Executive an award of 150,000 restricted shares of the Company’s Common Stock (the “New Grant”).  The New Grant shall vest as to one-fourth of the shares subject to the New Grant on January 1, 2017 (the “Initial Vesting Date”) and as to an additional one-fourth of such shares on each of the next three (3) anniversaries of the Initial Vesting Date.  The New Grant shall be made pursuant to, and, except as expressly set forth herein, shall be subject to the terms and conditions of, the Plan and the Company’s standard form of Restricted Stock Agreement.
(c)    Future Equity Grants.  The Executive shall continue to be eligible for equity incentive grants under the Plan, with the type, amount and terms of any such grants to be determined by the Compensation Committee in its sole discretion; provided, however, that the Executive’s annual equity incentive opportunity for each year during the Employment Period (subject to pro-ration for any partial year during the Employment Period) shall have a target value of 300% of the Base Salary. 
5.4    Benefits.  During the Employment Period, the Executive shall be entitled to all employee benefits and perquisites made available to senior executives of the Company, including, without limitation, group medical, dental, vision, life insurance, long-term disability insurance, retirement, pension, 401(k) savings plans and/or prescription drug plan coverage, subject to the condition that the Executive is eligible for participation in any such plans.  The Company shall pay 100% of the premium cost of the Company’s health insurance coverage provided to the Executive (and the Executive’s dependents, if applicable) by the Company from time to time.  Nothing contained in this Agreement shall prevent the Company from terminating plans, changing carriers or effecting modifications in employee benefits coverage for the Executive as long as such modifications affect all similarly situated senior executives of the Company. 
5.5    Vacation; Holidays.  During the Employment Period, the Executive shall be entitled to all public holidays observed by the Company and vacation days in accordance with the applicable vacation policies for senior executives of the Company, which vacation days shall be taken at a reasonable time or times.  The Executive shall be entitled to five (5) weeks vacation per year in accordance with the general policies of the Company and subject to applicable law; provided, however, that accrual of vacation time is capped at a maximum of five (5) weeks and no more than one (1) week of any unused vacation may carry over from calendar year to calendar year.
5.6    Directors and Officers Insurance and Indemnification.  The Company shall maintain insurance to insure the Executive against claims arising out of an alleged wrongful act by the Executive while acting as a director or officer of the Company or one of its subsidiaries.  The Company shall further indemnify and exculpate the Executive from money damages incurred as a result of claims arising out of an alleged wrongful act by the Executive while acting as an officer, director or employee of the Company, or of its subsidiaries, to the fullest extent permitted under applicable law, subject to the terms of the Amended and Restated Indemnification Agreement between the Company and Executive dated as of December 20, 2010, as such agreement may be amended from time to time.
5.7    Withholding Taxes and Other Deductions.  To the extent required by law, the Company shall withhold from any payments due to the Executive under this Agreement any applicable federal, state or local taxes and such other deductions as are prescribed by law or authorized by the Executive.  The Executive may, subject to prior approval by the Compensation Committee, elect that any withholding required upon any taxable event in connection with an award granted under the Plan be satisfied, in whole or in part, by withholding from any shares otherwise delivered or deliverable in respect of the award a number of shares having a Fair Market Value (as defined in the Plan) on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Compensation Committee establishes. All such elections shall be subject to any restrictions or limitations that the Compensation Committee, in its sole discretion, deems appropriate.
5.8    Nonqualified Deferred Compensation Plan.  The Company may, at the discretion of the Board, establish a nonqualified deferred compensation plan for the Executive.  Under such plan, the Executive may defer payment of certain portions of the Executive’s compensation (including, without limitation, Base Salary and bonuses) specified by the Executive, which is otherwise payable to the Executive, in accordance with the terms established by the Company and the requirements of Section 409A of the Code.

3

 

5.9     Relocation Allowance.  In the event that the Executive and the Board mutually agree in writing to any relocation of the Company during the Employment Period, the Company shall pay the Executive a reasonable relocation allowance as the Company and the Executive shall mutually determine.
SECTION 6 
EXPENSES
During the Employment Period, the Executive is expected and is authorized, subject to the business expense policies as determined by the Company, to incur reasonable expenses in the performance of the Executive’s duties hereunder, including the costs of entertainment, travel, and similar business expenses.  During the Employment Period, the Company shall promptly reimburse the Executive for all such expenses upon periodic presentation by the Executive of an accounting of such expenses on terms applicable to senior executives of the Company. 
SECTION 7 
TERMINATION OF EMPLOYMENT
7.1    Notice of Termination.  Any termination of the Executive’s employment by the Company or by the Executive shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 11.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon, if any, and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employment Period under the provision so indicated.  Termination of the Employment Period shall take effect on the Date of Termination (as defined in Section 11.14 hereof).  Prior to the Expiration Date, the Employment Period may be terminated under the following circumstances only:
7.2    Death.  The Executive’s employment shall terminate immediately upon the Executive’s death.
7.3    By the Company.  The Company may terminate the Executive’s employment:
(a) if the Executive shall have been unable to perform, in the opinion of a competent physician selected by the Board (provided that Executive shall also be able to select a physician and an independent review in the event there is a dispute), any or all of the Executive’s material duties hereunder, either with or without reasonable accommodation, by reason of illness, physical or mental disability or other similar incapacity, which inability shall continue for more than three consecutive months, or any six months in a twelve-month period (a “Disability”); or 
(b) with or without Cause (as defined in Section 11.14 hereof).
7.4    By the Executive.  The Executive may terminate the Executive’s employment at any time for Good Reason or without Good Reason (as defined in Section 11.14 hereof).
7.5    Return of Information.  The Executive agrees to deliver to the Company at the termination of the Executive’s employment, or at any other time so demanded by the Company, all records, files, software, software code, memoranda, reports, price lists, customer lists, drawings, plans, sketches, documents, technical information, contracts, sales or marketing materials, personnel information, financial information (including budgets), business and strategic plans, and the like (together with all copies of such documents and things) relating to the business of the Company and its Affiliates and their predecessors which the Executive may then possess or have under the Executive’s control.
SECTION 8 
COMPENSATION UPON TERMINATION
The Executive’s employment must be terminated during the Employment Period in order for the Executive to receive any payment or other benefit under this Section 8.

4

 

8.1    Death.  If the Executive’s employment terminates during the Employment Period as a result of the Executive’s death, the Company shall pay to the Executive’s estate, or as may be directed by the legal representatives of such estate, within thirty (30) days following the Date of Termination, any accrued but unpaid Base Salary through the Date of Termination.  All other unpaid amounts, if any, which the Executive has accrued and is entitled to as of the Date of Termination in connection with any fringe benefits or under any bonus or incentive compensation plan or program of the Company pursuant to Section 5 shall be paid in accordance with the terms of such arrangements.  In addition, if the Employment Period terminates as a result of the Executive’s death, then all equity-based awards granted by the Company that are outstanding and unvested on the Date of Termination shall become fully vested on the Date of Termination.  The Company shall have no further obligations to the Executive under this Agreement or otherwise (other than pursuant to any employee benefit plan and any life insurance, death in service or other equivalent policy for the benefit of the Executive). 
8.2    Disability.  If the Company terminates the Executive’s employment during the Employment Period because of the Executive’s Disability, the Company shall pay to the Executive within thirty (30) days following the Date of Termination any accrued but unpaid Base Salary through the Date of Termination.  All other unpaid amounts, if any, which the Executive has accrued and is entitled to as of the Date of Termination in connection with any fringe benefits or under any bonus or incentive compensation plan or program of the Company pursuant to Section 5 shall be paid in accordance with the terms of such arrangements. In addition, if the Company terminates the Executive’s employment during the Employment Period because of the Executive’s Disability, then all equity-based awards granted by the Company that are outstanding and unvested on the Date of Termination shall become fully vested on the Date of Termination, and the Executive shall be entitled to the COBRA payments provided under Section 8.6(b).  Except as otherwise set forth herein, the Company shall have no further obligations to the Executive under this Agreement or otherwise (other than pursuant to any employee benefit plan and any disability or other medical insurance policy for the benefit of the Executive). 
8.3    By the Company for Cause; By the Executive Without Good Reason.  If the Company terminates the Executive’s employment during the Employment Period for Cause or if the Executive terminates the Executive’s employment during the Employment Period without Good Reason, the Company shall pay to the Executive within thirty (30) days following the Date of Termination any accrued but unpaid Base Salary through the Date of Termination.  All other unpaid amounts, if any, which the Executive has accrued and is entitled to as of the Date of Termination in connection with any fringe benefits or under any bonus or incentive compensation plan or program of the Company pursuant to Section 5 shall be paid in accordance with the terms of such arrangements. Other than as set forth in this Section 8.3 or otherwise set forth herein, the Company shall have no further obligations to the Executive under this Agreement or otherwise (other than pursuant to any employee benefit plan). 
8.4    By the Company Without Cause; By the Executive for Good Reason.  If the Company terminates the Executive’s employment during the Employment Period other than for Cause, Disability or death, or the Executive terminates the Executive’s employment during the Employment Period for Good Reason, the Company shall pay to the Executive within thirty (30) days following the Date of Termination any accrued but unpaid Base Salary through the Date of Termination.  All other unpaid amounts, if any, which the Executive has accrued and is entitled to as of the Date of Termination in connection with any fringe benefits or under any bonus or incentive compensation plan or program of the Company pursuant to Section 5 shall be paid in accordance with the terms of such arrangements.  In addition, if such termination of the Executive’s employment occurs prior to the Expiration Date, the Executive shall be entitled to the Separation Benefits as defined in Section 8.6, upon the conditions set forth therein.  The Company shall have no further obligations to the Executive under this Agreement or otherwise (other than pursuant to any employee benefit plan). 
8.5    General Release.  The Executive shall execute a customary general release in a form reasonably satisfactory to the Company in furtherance of this Agreement and as a condition to the receipt of any Separation Benefits (the “Release”).  Nothing in this Section 8 shall be deemed to operate or shall operate as a release, settlement or discharge of any liability of the Executive to the Company or others for any action or omission by the Executive, including, without limitation, any actions which formed, or could have formed, the basis for termination of the Executive’s employment for Cause. 

5

 

8.6    Separation Benefits.  For purposes of this Agreement, “Separation Benefits” shall mean:
(a)     payment by the Company to the Executive of:
		
	 (1)
	the product of (x) the Executive’s Target Bonus for the year in which the Date of Termination occurs, and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365; and 

		
	(2) 
	a severance benefit, in the amount equal to three (3) times the sum of (i) the Executive’s Base Salary at the rate in effect on the Date of Termination and (ii) the Executive’s Target Bonus for the fiscal year in which the Date of Termination occurs.

Subject to Section 11.13 hereof, the cash payments provided in Section 8.6(a) above shall be made by the Company in a lump sum on the sixtieth (60th) day following the Date of Termination. 
(b)     if the Executive elects to continue participation in any group medical, dental, vision and/or prescription drug plan benefits to which the Executive and/or the Executive’s eligible dependents would be entitled under Section 4980B (“COBRA”) of the Internal Revenue Code of 1986, as amended (the “Code”), then the Company shall pay or reimburse any applicable premium under COBRA for participation in such plans for a period of eighteen (18) months beginning on the Date of Termination, subject to the condition that the Executive remains eligible for participation in such plans; and
(c)     all equity-based awards granted by the Company that are outstanding and unvested on the Date of Termination shall become fully vested on the Date of Termination. 
Notwithstanding any other provisions herein to the contrary, the Executive’s receipt of the Separation Benefits shall be subject to and conditioned upon Executive’s compliance with the terms and conditions of Section 9 of this Agreement and the Executive having executed, within forty-five (45) days after the Date of Termination, the Release and such Release having not been revoked within any revocation period provided by applicable law.
8.7    Termination Upon Expiration of the Employment Period.  If the Executive’s employment terminates upon or following the Expiration Date, the Company shall pay to the Executive within thirty (30) days following the Date of Termination any accrued but unpaid Base Salary through the Date of Termination, and all other unpaid amounts, if any, which the Executive has accrued and is entitled to as of the Date of Termination in connection with any fringe benefits or under any bonus or incentive compensation plan or program of the Company pursuant to Section 5 shall be paid in accordance with the terms of such arrangements.  Except as otherwise set forth herein, the Company shall have no further obligations to the Executive under this Agreement or otherwise (other than pursuant to any employee benefit plan).
8.8    Non-Compete Payment for Time Period.  Upon the termination of the Executive’s employment for any reason other than the Executive’s death or a termination by the Company for Cause (whether such termination is by the Company or the Executive and whether such termination occurs before or after the Expiration Date), if the Company elects that the Executive shall be subject to the non-competition covenant following the Date of Termination as provided in Section 9.2, the Company shall pay to the Executive, in consideration for such covenant, an amount equal to seventy-five percent (75%) of the sum of (i) the Executive’s Base Salary at the rate in effect on the Date of Termination and (ii) the annual incentive bonus paid by the Company to the Executive for the fiscal year immediately preceding the fiscal year in which the Date of Termination occurs (the “Non-Compete Payment”); provided, however, that in the case of a termination of the Executive’s employment that occurs on or after the Expiration Date, the Company shall be required to provide the Executive written notice not less than twelve (12) months before the Expiration Date that it will require the Executive to comply with such non-competition covenant (and, if the Company does not timely provide such notice to the Executive prior to such a termination of the Executive’s employment by the Company, the Executive will not be subject to the non-competition covenant in Section 9.2).  The Non-Compete Payment shall be paid to the Executive in a series of monthly installments over the applicable period in which the non-competition covenant applies.  In the event the Executive breaches the non-competition covenant provided in Section 9.2 or any 

6

 

other provision of Section 9, the Executive shall not be entitled to receive any portion of the Non-Compete Payment (and the Executive shall be required to repay to the Company in full any portion of the Non-Compete Payment paid to the Executive prior to such breach).  For purposes of clarity, the Company may elect that the Executive will not be subject to the non-competition covenant set forth in Section 9.2, in which case the Executive will not be entitled to any portion of the Non-Compete Payment provided in Section 8.8; provided, however, that the Company must make such election and notify the Executive no later than ten (10) days after the Date of Termination.  If the Company elects that the Executive will be subject to this non-competition covenant, such covenant will apply for the entire Time Period following the Date of Termination.
8.9    Supplemental Non-Compete.  In addition to the non-competition covenant provided in Section 9.2, the Executive agrees that if the Executive’s employment with the Company terminates for any reason (other than termination by the Company for Cause or as a result of the Executive’s death), whether such termination is by the Company or the Executive and whether such termination occurs before or after the Expiration Date, the Executive shall not be employed by or provide services to any Non-Compete Entity (as defined in Section 9.2) at any time during the period commencing on the date of such termination of the Executive’s employment and continuing through the date that is two (2) years after such termination date; provided, however, that the Company may at any time in the Company’s sole discretion provide for a shorter (but not a longer) period (such period, the “Supplemental Non-Compete Period”).  During the Supplemental Non-Compete Period, all equity-based awards granted by the Company that are outstanding and unvested on the date of such termination of the Executive’s employment shall remain outstanding and continue to vest on their scheduled vesting dates during the Supplemental Non-Compete Period, with vesting subject in each case to the Executive’s continued compliance with the Executive’s obligations under this Section 8.9 and the Executive’s other obligations under Section 9 through the applicable vesting date and, to the extent such awards are outstanding and unvested on the last day of the Supplemental Non-Compete Period, shall become fully vested at the end of such period (or, if for any reason the Executive’s obligations under this Section 8.9 do not apply following the date of such termination of the Executive’s employment, such awards shall become fully vested on the date of such termination).  For avoidance of doubt, if the Executive breaches the Executive’s obligations under this Section 8.9, the Executive shall not be entitled to any further vesting of the Executive’s equity-based awards under this Section 8.9, and any then-unvested awards shall be forfeited to the Company without payment.  Upon any vesting of the awards during or at the conclusion of the Supplemental Non-Compete Period pursuant to this Section 8.9, the Executive may elect to have any tax withholding obligations arising in connection with such vesting event be satisfied by a withholding of shares by the Company as contemplated by Section 5.7, and in the event it is determined that any such shares that may vest pursuant to this Section 8.9 shall be treated as taxable income to the Executive before their scheduled vesting date, the Company shall cancel the required amount of remaining unvested shares (applied on a pro-rata basis across the applicable vesting installments) in order to satisfy any withholding tax obligations for the Executive, and such shares shall no longer be held by or subject to forfeiture by the Executive.  Except as otherwise set forth herein, the Company shall have no further obligations to the Executive under this Agreement or otherwise (other than pursuant to any employee benefit plan). 

7

 

SECTION 9 
RESTRICTIVE COVENANTS
9.1    Protection of Confidential Information. The Executive hereby agrees that, during the Executive’s employment with the Company and thereafter, the Executive 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). The Executive further agrees that, upon the Date of Termination, all Confidential Information in the Executive’s possession that is in written or other tangible form shall be returned to the Company and shall not be retained by the Executive or furnished to any third party.  Notwithstanding the foregoing, this Section 9 shall not apply to Confidential Information that (i) was publicly known at the time of disclosure to the 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 the Executive, (iii) is lawfully disclosed to the 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 the Executive to disclose or make accessible any information. 
As used in this Agreement, “Confidential Information” means, without limitation, any non-public confidential or proprietary information disclosed to Executive or known by the Executive as a consequence of or through the 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 the Executive may have relating to Confidential Information under any other agreement with the Company.
The Executive recognizes that because the Executive’s work for the Company will bring the Executive into contact with confidential and proprietary information of the Company, the restrictions of this Section 9 are required for the reasonable protection of the Company and its investments and for the Company’s reliance on and confidence in the Executive.
9.2    Non-Competition.  If the Executive’s employment terminates for any reason other than a termination by the Company for Cause or due to the Executive’s death, the Executive agrees that, for the duration of the Time Limit and within the Geographical Limit (each as defined below) and, in the event of a termination of the Executive’s employment by the Company without Cause, subject to the notice requirement set forth in Section 8.8 in the case of a termination on or after the Expiration Date, the Executive shall not, either directly or indirectly, or in any individual or representative capacity, be employed by or otherwise provide services to any publicly traded or non-traded REIT in the medical office building sector, including, without limitation (a) Physicians Realty Trust Inc. Northstar Securities, LLC, HCP Inc., Healthcare Realty Trust Incorporated, Welltower, Inc., Ventas Inc., Duke Realty Corp., Griffin-American Healthcare REIT, or American Realty Capital Healthcare Trust, (b) any Affiliates of any of the foregoing entities, or (c) any successors or assigns of any of the foregoing entities (a “Non-Compete Entity”).  
The term “Geographical Limit” herein shall mean the United States.  In the event a court of competent jurisdiction determines the geographic area as set forth herein is too broad, the parties agree to narrow such restriction to the geographic areas of the United States wherein the Company owns assets at the time of such determination.  In the event a court of competent jurisdiction determines the geographic area as set forth herein is too broad, the parties hereto agree to narrow such restriction to the state in which the Executive’s primary resident office is situated.  In the event a court of competent jurisdiction determines the geographic area as set forth herein is too broad, the parties hereto agree to narrow such restriction to the County in the state in which the Executive’s primary resident office is situated.
9.3    Non-Solicitation of Customers, Vendors and Others.  The Executive agrees, for the duration of the Time Limit that the Executive, either directly or indirectly, or in any individual or representative capacity, shall not request or solicit any of the Company’s investors, prospective investors, shareholders, health care institution relationships, tenants, targeted prospective tenants, brokers, dealers, agents or vendors to withdraw, curtail, cancel, or decrease the level of their business with and/or referrals to the Company or request that they do business with or provide referrals to any third party in competition with the Company.

8

 

9.4    Non-Solicitation of the Company’s Employees.  The Executive agrees, for the duration of the Time Limit that the Executive, either directly or indirectly, or in any individual or representative capacity, shall not request or solicit, or assist any third party in requesting or soliciting, any of the Company’s employees to terminate his/her employment with the Company or to accept employment with any third party in competition with the Company.  Nothing herein shall prevent the Executive, directly or indirectly through the use of agents, employees or other representatives, from placing general advertisements in any widely-distributed media (such as newspapers and Internet postings) for employment directed at the public at large (as opposed to directed specifically at the Company’s employees) that have the effect of inducing or influencing any of the Company’s employees to terminate his/her employment with the Company.
9.5.    Time Limit.  The term “Time Limit” shall mean during the Executive’s employment with the Company and continuing for one (1) year after the date of termination of any such employment for any reason (regardless whether such termination occurs before or after the Expiration Date).  In the event of a violation of any of the covenants contained in this Section 9, the Time Limit shall be extended by a period of time equal to that period beginning when the activities constituting the violation commenced, and ending when those activities terminated.  
9.6.    Reasonableness of Limitations; Severability.  The Executive hereby acknowledges and agrees that the covenants and obligations made and undertaken in this Section 9 are fair and reasonable in all respects, including, without limitation, with respect to duration, geographic area and scope of activity, and do not (and shall not) prevent the Executive from earning a livelihood.  In the event that one or more of the provisions of the covenants made and undertaken in this Section 9 is held invalid, void or unenforceable by any court of competent jurisdiction, such invalidity, voidness or unenforceability shall not render invalid, void or unenforceable any other part or provision of this Agreement.  Further, if any of the provisions of the covenants made and undertaken in this Section 9 are found to be invalid or unenforceable by a court or competent jurisdiction, such provisions shall be severed, modified or redefined by consideration of the reasonable concerns and needs of the Company such that the intent of the parties in agreeing to the provisions of this Agreement shall not be impaired and the provision in question shall be enforceable to the fullest extent permitted by applicable laws.
9.7.    Enforcement of Agreement.  The parties hereto agree that a violation by the Executive of any part of this Section 9 shall cause irreparable damage to the Company which cannot be easily and fairly quantified.  For that reason, the Executive agrees that the Company shall be entitled, as a matter of right, to seek an injunction from any court of competent jurisdiction, without the necessity of posting bond, restraining any further violation of this Section 9.  This remedy shall be in addition to any other rights and remedies the Company may have pursuant to this Agreement, or law, including, specifically, the recovery of monetary damages, whether compensatory or punitive.
9.8    Survival.  This Section 9 shall survive termination of this Agreement for any reason.
SECTION 10 
SECTION 4999 OF THE CODE
10.1    Payments; Excise Tax.  Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by the Company to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then, prior to the making of any Payment to the Executive, a calculation shall be made comparing (i) the net benefit to the Executive of the Payment after payment of the Excise Tax, to (ii) the net benefit to the Executive if the Payment had been limited to the extent necessary to avoid being subject to the Excise Tax.  If the amount calculated under (i) above is less than the amount calculated under (ii) above, then the Payment shall be limited to the extent necessary to avoid being subject to the Excise Tax (the “Reduced Amount”).  The reduction of the Payments due hereunder, if applicable, shall be made by first reducing cash Payments and then, to the extent necessary, reducing those Payments having the next highest ratio of Parachute Value to actual present value of such Payments as of the date of the change of control, as determined by the Determination Firm (as defined in Section 10(b) below).  For purposes of this Section 10, present value shall be determined in accordance with Section 280G(d)(4) of the Code.  For purposes of this Section 10, the “Parachute Value” of a Payment means the present value as of the date of the change of control of the portion of such Payment 

9

 

that constitutes a “parachute payment” under Section 280G(b)(2) of the Code, as determined by the Determination Firm for purposes of determining whether and to what extent the Excise Tax shall apply to such Payment.  
10.2    Determination Firm; Underpayment.  The determination of whether an Excise Tax would be imposed, the amount of such Excise Tax, and the calculation of the amounts referred to Section 10(a)(i) and (ii) above shall be made by an independent, nationally recognized accounting firm or compensation consulting firm mutually acceptable to the Company and the Executive (the “Determination Firm”) which shall provide detailed supporting calculations.  Any determination by the Determination Firm shall be binding upon the Company and the Executive.  As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Determination Firm hereunder, it is possible that Payments which the Executive was entitled to, but did not receive pursuant to Section 10(a), could have been made without the imposition of the Excise Tax (“Underpayment”).  In such event, the Determination Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive but no later than March 15 of the year after the year in which the Underpayment is determined to exist, which is when the legally binding right to such Underpayment arises.  
10.3    Repeal.  In the event that the provisions of Code Section 280G and 4999 or any successor provisions are repealed without succession, this Section 10 shall be of no further force or effect.
SECTION 11 
MISCELLANEOUS
11.1    Notices.  All notices, demands, requests or other communications required or permitted to be given or made hereunder shall be in writing and shall be delivered by overnight courier, telecopied or mailed by first class registered or certified mail, postage prepaid, addressed as follows: 
(a)     If to the Company: 
Healthcare Trust of America, Inc. 
The Promenade, Suite 320 
16435 North Scottsdale Road 
Scottsdale, AZ  85254 
Fax: (480) 991-0755 
Attention: Board of Directors
With a copy to:
O’Melveny & Myers LLP 
Two Embarcadero Center 
28th Floor 
San Francisco, CA  94111-3823 
Fax: (415) 984-8701 
Attention:  Peter T. Healy, Esq.
(b)    If to the Executive: 
Scott D. Peters
c/o The Promenade, Suite 320
16435 North Scottsdale Road
Scottsdale, AZ  85254
Fax: (480) 991-0755
or at the address on the books and records of the Company at the time of such notice, or to such other address as may be designated by either party in a notice to the other.  Each notice, demand, request or other communication that shall 

10

 

be given or made in the manner described above shall be deemed sufficiently given or made for all purposes three days after it is deposited in the U.S. mail, postage prepaid, or at such time as it is delivered to the addressee (with the return receipt, the delivery receipt, the answer back or the affidavit of messenger being deemed conclusive evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation. 
11.2    Severability.  The invalidity or unenforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of the other provisions of this Agreement, which shall remain in full force and effect. 
11.3    Survival.  It is the express intention and agreement of the parties hereto that the provisions of Sections 8 and 9 shall survive the termination of employment of the Executive.  In addition, all obligations of the Company to make payments hereunder shall survive any termination of this Agreement on the terms and conditions set forth herein. 
11.4    Assignment.  The rights and obligations of the parties hereto shall not be assignable or delegable, except that (i) in the event of the Executive’s death, the personal representative or legatees or distributees of the Executive’s estate, as the case may be, shall have the right to receive any amount owing and unpaid to the Executive hereunder, and (ii) the rights and obligations of the Company hereunder shall be assignable and delegable in connection with any merger, consolidation or sale of all or substantially all of the assets of the Company and any similar event with respect to any successor corporation.  Notwithstanding anything herein to the contrary, the rights and obligations of the Company hereunder shall inure to the benefit of, and shall be binding upon, any successor to the Company or its business by merger or otherwise, whether or not there is an express assignment, delegation or assumption of such rights and obligations. 
11.5    Dispute Resolution.  In the event that any dispute or disagreement arises between the parties in connection with any provision of this Agreement, the parties shall first submit such disagreements to mediation, which mediation shall occur in the County in the state in which the Executive’s primary resident office is situated.  Either party may commence mediation by providing to Judicial Arbitration and Mediation Services, Inc. (“JAMS”) and the other party hereto a written request for mediation, setting forth the subject of the dispute and the relief requested.  The parties hereto shall cooperate with JAMS and with one another in selecting a mediator from JAMS panel of neutrals, within thirty (30) days after the commencement of the mediation, and in scheduling the mediation proceedings.  The parties hereto shall share equally in the costs of mediation. All offers, promises, conduct and statements, whether oral or written, made in the course of the mediation by any of the parties, their agents, employees, experts and attorneys, and by the mediator or any JAMS employees, are confidential, privileged and inadmissible for any purpose, including impeachment, in any proceeding involving the parties, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the mediation.  Either party may commence a legal action with respect to the matters submitted to mediation at any time following the initial mediation session or forty-five (45) days after the date of filing the written request for mediation, whichever occurs first.
11.6    Binding Effect.  Subject to any provisions hereof restricting assignment, this Agreement shall be binding upon the parties hereto and shall inure to the benefit of the parties and their respective heirs, devisees, executors, administrators, legal representatives, successors and assigns. 
11.7    Amendment; Waiver.  This Agreement shall not be amended, altered or modified except by an instrument in writing duly executed by the parties hereto. No waiver by either of the parties hereto of a breach of or a default under any of the provisions of this Agreement shall thereafter be construed as a waiver of any subsequent breach or default of a similar nature.  The failure of either of the parties hereto, on one or more occasions, to enforce any of the provisions of this Agreement or to exercise any right or privilege hereunder shall not be construed as a waiver of any such provisions, rights or privileges hereunder, or a waiver of any subsequent breach or default of a similar nature. 
11.8    Headings.  Section and subsection headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof.   

11

 

11.9    Governing Law.  This Agreement, the rights and obligations of the parties hereto, and any claims or disputes relating thereto, shall be governed by and construed in accordance with the laws of the state in which the Executive’s primary resident office is situated (but not including the choice of law rules thereof).  The parties hereto further agree that the sole and exclusive forum for litigating any disputes arising under the terms of this Agreement shall be a court of competent jurisdiction in the state in which the Executive’s primary resident office is situated (but not including the choice of law rules thereof).  
11.10    Integrated Agreement.  This Agreement contains the entire agreement between the parties with respect to the subject matter hereof. There have been no offers or inducements regarding the making of this Agreement except as set forth herein.    
11.11    Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which shall be deemed to constitute one and the same instrument. 
11.12    Legal Expenses.  The Company shall pay or reimburse the Executive during the Employment Period for reasonable attorneys’ fees incurred by the Executive in connection with the negotiation of this Agreement.  Any such reimbursement shall be made no later than thirty (30) days after the Executive delivers the applicable invoice to the Company.  
11.13    Provisions Regarding Code Section 409A.  
(a)    This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements Section 409A of the Code and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief under Section 409A of the Code).
(b)    Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred Compensation”) would otherwise be payable or distributable hereunder by reason of the Executive’s termination of employment, such Non-Exempt Deferred Compensation shall not be payable or distributable to the Executive by reason of such circumstance unless the circumstances giving rise to such termination of employment meet any description or definition of “separation from service” in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definitions).  If this provision prevents the payment or distribution of any Non-Exempt Deferred Compensation, such payment or distribution shall be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant “separation from service,” or such later date as may be required by Section 11.13(c) below.
(c)    Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Agreement by reason of the Executive’s separation from service during a period in which the Executive is a “specified employee” (as defined in Section 409A of the Code and applicable regulations), then payment or commencement of such Non-Exempt Deferred Compensation shall be delayed until the earlier of (i) thirty (30) days following the Executive’s death, or (ii) the first day of the seventh month following the Executive’s separation from service. 
(d)    Whenever in this Agreement a payment or benefit is conditioned on the Executive’s execution of a release of claims, such release must be executed and all revocation periods shall have expired within 60 days after the Date of Termination; failing which such payment or benefit shall be forfeited.   
(e)    If the Executive (or the Executive’s spouse or eligible dependents) is entitled to be paid or reimbursed for any taxable expenses under this Agreement, including, but not limited to, those expenses provided in Sections 5, 6 and 11, and such payments or reimbursements are includible in the Executive’s federal gross taxable income, the amount of such expenses reimbursable in any one calendar year shall not affect the amount reimbursable in any other calendar year, and the reimbursement of an eligible expense must be made no later than December 31 of the year after the year in which the expense was incurred.  No right of the Executive to reimbursement of expenses under this Agreement, 

12

 

including, but not limited to, those provided in Sections 5 and 6, shall be subject to liquidation or exchange for another benefit.
11.14    Definitions.  
“Affiliate” means any entity from time to time designated by the Board and any other entity directly or indirectly controlling or controlled by or under common control with the Company. For purposes of this definition: “control” means the power to direct the management and policies of such entity, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.   
“Asset Sale” means the sale or other disposition of all or substantially all of the Company’s assets for cash or other consideration, unless such Asset Sale is a Non-Qualifying Transaction (as defined herein).   
“Board” means the Board of Directors of the Company. 
“Cause” means: (i) the Executive’s conviction of or entering into a plea of guilty or no contest to a felony or a crime involving moral turpitude, (ii) the intentional commission of any other act or omission involving dishonesty or fraud that is materially injurious to the Company or any of its Affiliates, as reasonably determined by the Board, or (iii) the Executive’s substantial and repeated failure to perform duties of the office(s) held by the Executive, as reasonably directed by the Board, if such failure is not cured within thirty (30) days after the Executive receives written notice thereof from the Board.
“Code” means the Internal Revenue Code of 1986, as amended. 
“Corporate Transaction” means the consummation of a merger, consolidation, statutory share exchange, stock purchase or similar form of corporate transaction involving the Company that provides the Company’s stockholders with a combination of cash and/or securities of a company that are traded on a National Securities Exchange, unless such Corporate Transaction is a Non-Qualifying Transaction (as defined herein).
“Date of Termination” means: (i) if the Executive’s employment is terminated by the Executive’s death, the date of the Executive’s death; (ii) if the Executive’s employment is terminated because of the Executive’s Disability, thirty (30) days after Notice of Termination, provided that the Executive shall not have returned to the performance of the Executive’s duties on a full-time basis during such thirty (30) day period; (iii) if the Executive’s employment is terminated by the Company for Cause, the date specified in the Notice of Termination; (iv) if the Executive’s employment is terminated during the Employment Period, either by the Company or the Executive, for any other reason, the date specified in the Notice of Termination; or (v) if the Executive’s employment is terminated by reason of expiration of the Employment Period by its terms, the date on which the Employment Period expires by its terms. 
“Good Reason” means, in the absence of the written consent of the Executive: (i) a material diminution in the Executive’s authority, duties or responsibilities, as contemplated by Section 3 of this Agreement (including removal from the position of Chief Executive Officer and President of the Company or, in the event of a Corporate Transaction or an Asset Sale, not being appointed to serve as Chief Executive Officer and President of the entity that, as a result of such Corporate Transaction or Asset Sale, owns the Company or all or substantially all of the Company’s assets or stock directly or through one or more subsidiaries); (ii) a material diminution in the Executive’s Base Salary; (iii) a material change in the geographic location at which Executive must perform services, which for purposes of this Agreement shall mean the Company’s requiring the Executive to be based at any office or location more than thirty-five (35) miles from that identified in Section 4 of this Agreement; (iv) a requirement that the Executive report to a corporate officer or employee instead of reporting directly to the Board; (v) in connection with or following a Corporate Transaction or Asset Sale, the failure of the entity that, as a result of such Corporate Transaction or Asset Sale, owns the Company or all or substantially all of the Company’s assets or stock directly or through one or more subsidiaries, to maintain an equity incentive plan that provides substantially comparable equity incentives to participants (including, without limitation, the Executive) as the Company’s equity incentive plan in effect immediately prior to such Corporate Transaction or Asset Sale; or (vi) any other action or inaction that constitutes a material breach by the Company of this Agreement, including, without limitation, any failure by the Company to comply with and satisfy Section 11.4 of this 

13

 

Agreement.  Notwithstanding the foregoing, (A) the Executive shall notify the Company in writing of any event or condition claimed to constitute Good Reason under this paragraph within ninety (90) days of the initial existence of such event or condition, (B) the Company shall have thirty (30) days after receipt of such notice from the Executive to cure such initial event or condition, and (C) the Executive must separate from service with the Company within six (6) months following the initial existence of such event or condition. 
“National Securities Exchange” means (i) the New York Stock Exchange, NYSE Amex Equities, or the Global Market or the Global Select Market of the NASDAQ Stock Market (or any successor to such entities), or (ii) a national securities exchange (or tier or segment thereof) that has listing standards that the Securities and Exchange Commission has determined by rule are substantially similar to the listing standards applicable to securities described in Section 18(b)(1)(A) of the Securities Act.
“Non-Qualifying Transaction” means, with respect to a Corporate Transaction or an Asset Sale, immediately following such Corporate Transaction or Asset Sale: (A) all or substantially all of the individuals and entities who were the “beneficial owners” (as defined in Rule 13d-3 of the General Rules and Regulations under the Securities Exchange Act of 1934), respectively, of the outstanding Company Common Stock and the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”) immediately prior to such Corporate Transaction or Asset Sale, beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Corporate Transaction or Asset Sale (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction or Asset Sale, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person (other than (x) the Company or any subsidiary, (y) the Surviving Entity or its ultimate parent entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the “beneficial owner,” directly or indirectly, of 50% or more of the total common stock or 50% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Corporate Transaction or Asset Sale.  For purposes of this definition, “Incumbent Directors” means, during any consecutive 12-month period, individuals who, at the beginning of such period, constitute the Board.
[Signatures on Following Page]

14

 

IN WITNESS WHEREOF, the undersigned have duly executed this Agreement, or have caused this Agreement to be duly executed on their behalf, as of the Effective Date.  

“COMPANY”

HEALTHCARE TRUST OF AMERICA, INC.,
a Maryland corporation

	
		
	By:
	/s/ Robert A. Milligan

	 
	 

	Name: 
	Robert A. Milligan

	Title:
	Chief Financial Officer, Secretary and Treasurer

“EXECUTIVE”

	
	
	/s/ Scott D. Peters

	 

	Scott D. Peters

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]