Document:

Exhibit 10.35

 

[CEO THREE YEAR CLIFF VESTING]

 

PERFORMANCE
RESTRICTED STOCK UNIT AGREEMENT

 

[                            ],
Grantee:

 

As of the [            ] day of [              
2006] (the “Grant Date”), Health
Care Property Investors, Inc., a Maryland corporation (the “Company”),
pursuant to the Health Care Property Investors, Inc. 2000 Stock Incentive
Plan, as amended and/or restated from time to time (the “Plan”), has
granted to you, the Grantee named above, [              ] performance restricted stock units (the “Units”)
with respect to [            ] shares of Common Stock on the terms and conditions set
forth in this Performance Restricted Stock Unit Agreement (this “Agreement”)
and the Plan. The Units are subject to adjustment as provided in Section 11(a) of
the Plan. Capitalized terms not defined herein shall have the meanings assigned
to such terms in the Plan. The Compensation Committee (the “Committee”)
of the Board of Directors of the Company (the “Board”) is the
administrator of the Plan for purposes of your Units.

 

I.                                         Forfeiture
of Units.

 

(a)                                  Forfeiture
Based Upon Company Performance. Your Units will be paid only to the extent
your Units are not forfeited pursuant to this Section I and only to
the extent such non-forfeited Units vest pursuant to this Section I or Section II
below. Your Units are subject to forfeiture if the Company’s Funds From
Operations Per Share for the 2006 calendar year (the “Performance Period”)
is less than [$      ].
If the Company’s Funds From Operations Per Share for the Performance Period is
less than [$      ],
the aggregate percentage of Units that you will forfeit will be determined in
accordance with Exhibit A hereto. For purposes of this Agreement, “Funds
From Operations Per Share” means the Company’s funds from operations per
share during the Performance Period, as prescribed by the National Association
of Real Estate Investment Trusts (NAREIT) as in effect on the first day of the
Performance Period, and shall be calculated on a fully diluted basis using the
weighted average of diluted shares of Common Stock outstanding during the
Performance Period. Funds From Operations Per Share shall be calculated before
taking into account any non-recurring charges incurred by the Company with
respect to the Performance Period for (i) material strategic or financing
transactions approved by the Board of Directors and (ii) impairments. The
determination as to whether the Company has attained the performance goals with
respect to the Performance Period shall be made by the Committee acting in good
faith. The Committee’s determination regarding whether the Company has attained
the performance goals (the “Committee Determination”) shall be made no
later than the March 15 following the end of the Performance Period. Your
Units shall not be deemed vested pursuant to any other provision of this
Agreement earlier than the date that the Committee makes such determination, as
required by Section 162(m) of the Code and the regulations promulgated
thereunder. Any Units forfeited pursuant to this Section I(a) shall
be deemed to have been forfeited as of the last day of the Performance Period.

 

(b)                                 Forfeiture
of Units Upon Termination of Employment. Except as provided in Section I(c),
if at any time during the Performance Period your employment with the Company
is terminated, all of your Units shall be automatically forfeited and cancelled
in full effective as of such termination of employment and this Agreement shall
be null and void and of no further force and effect.

 

1

 

(c)                                  Certain
Terminations during the Performance Period. This Section I(c) applies
in the event your employment with the Company is terminated as a result of (i) your
death, Disability or Retirement, (ii) a Termination Other Than For Cause, (iii) a
Termination For Good Reason, or (iv) a Termination Upon a Change in
Control (including a Covered Resignation). In the event of any such termination
during the Performance Period, your Units will remain outstanding during the
remainder of the Performance Period and will be subject to forfeiture in the
manner set forth in subsection (a) upon completion of the Performance
Period. In such a case, any Units not so forfeited pursuant to subsection (a) shall
fully vest as of the date of the Committee Determination. For purposes of this
Agreement, the terms “Covered Resignation,” “Disability,” “Termination
Other Than For Cause,” “Termination For Good Reason,” and “Termination
Upon a Change in Control” shall have the meanings ascribed to such terms in
your Employment Agreement with the Company dated October 26, 2005 (the “Employment
Agreement”). Such meanings shall continue to apply for purposes of this
Agreement notwithstanding any termination of the “Employment Period” (as
such term is defined in the Employment Agreement) in accordance with the
Employment Agreement.

 

II.                                     Vesting.

 

(a)                                  Vesting
of Non-Forfeited Units. You will have no further rights with respect to any
Units that are forfeited in accordance with Section I. Subject to the
terms and conditions of this Agreement, your Units that (i) are not
forfeited in accordance with Section I and (ii) do not otherwise vest
in accordance with Section I, if any, shall vest upon the third
anniversary of the Grant Date (the “Vesting Date”), subject to your
continuous service to the Company until the Vesting Date.

 

The vesting schedule requires
continued employment through the Vesting Date as a condition to vesting of the Units
and the rights and benefits under this Agreement. Unless otherwise expressly
provided herein with respect to accelerated vesting of the Units under certain
circumstances, employment for only a portion of the vesting period, even if a
substantial portion, will not entitle you to any proportionate vesting or avoid
or mitigate a termination of rights and benefits upon or following a
termination of employment as provided in this Agreement.

 

(b)                                 Acceleration
on Certain Terminations Following Performance Period. If at any time
following the completion of the Performance Period and prior to the Vesting
Date, your employment with the Company is terminated as a result of (i) your
death, Disability or Retirement, (ii) a Termination Other Than For Cause (iii) a
Termination For Good Reason, or (iv) a Termination Upon a Change in
Control (including a Covered Resignation), your then outstanding Units (to the
extent not previously forfeited and otherwise unvested) shall fully vest
immediately upon such termination of employment.

 

(c)                                  No
Acceleration or Vesting Upon Other Terminations. Except as otherwise
provided in the Plan, if at any time your employment with the Company is
terminated (i) by the Company, or (ii) by you, under any
circumstances (other than as a result of your death, Disability or Retirement,
a Termination Other Than For Cause, a Termination For Good Reason, or a
Termination Upon a Change in Control, including a Covered Resignation), any of
your Units that remain outstanding and otherwise unvested at the time of such
termination of

 

2

 

employment shall
be automatically forfeited and cancelled in full, effective as of such
termination of employment.

 

(d)                                 Employment
Termination Date. If the Employment Period is in effect, the date of your
termination of employment for purposes of this Agreement shall be no earlier
than the “Date of Termination,” as such term is defined in the
Employment Agreement. If the Employment Period is not then in effect, the date
of termination of your termination of employment for purposes of this Agreement
shall be your actual date of termination of employment.

 

III.                                 Timing
and Form of Payment.

 

(a)                                  Distribution
Date. Unless you elect otherwise on or before the Grant Date, the
distribution date (the “Distribution Date”) for your Units that become
vested pursuant to this Agreement will be the date that such Units vest;
provided that in no event shall the Distribution Date occur earlier than the
date of the Committee Determination. Distribution of your vested Units will be
made by the Company in shares of Common Stock (on a one-to-one basis) on or as
soon as practicable after the Distribution Date with respect to such vested
Units. You will only receive distributions in respect of your vested Units and
will have no right to distribution of your unvested Units unless and until such
Units vest (and are not otherwise forfeited pursuant to Section I(a)). Once
a vested Unit has been paid pursuant to this Agreement, you will have no
further rights with respect to that Unit. You may, however, elect (a “Distribution
Election”) to (A) defer your Distribution Date with respect to some or
all of your vested Units and/or (B) have your vested Units distributed to
you in annual installments as provided in Section IV(b), provided that
such election complies with this Section IV. You may change your
Distribution Election up to three times without the approval of the Committee,
provided such Distribution Election is made in a timely manner. Any
Distribution Elections with respect to your vested Units in addition to the
three provided in the preceding sentence may only be made with the
approval of the Committee, in its sole discretion. In order for a Distribution
Election to be valid, it must be made at least one year prior to the
then-existing Distribution Date, the new Distribution Date must be at least
five years after the then-existing Distribution Date, and the election must
otherwise be consistent with the “subsequent election” rules of Section 409A(a)(4)(C) of
the Code so as to prevent application of the penalty and interest provisions of
Section 409A(a)(1)(B) of the Code. Your Distribution Date with
respect to any portion of your Units may not be prior to the earlier of
the Vesting Date for such vested Units or the date of the Committee
Determination. Distribution Elections may only be made by delivering a
written election to the Company care of its General Counsel in the form attached
as Exhibit B hereto.

 

(b)                                 Form of
Distribution. Unless you elect otherwise on or before the Grant Date,
distribution of your vested Units will be made in a lump sum on or as soon as
practicable after your Distribution Date. You may, however, elect to have
vested Units distributed in the form of two or more annual installments
over a fixed number of years, provided that each installment payment must be for
a minimum of 1,000 shares of Common Stock. If you elect to have your vested
Units distributed in annual installments, the first installment will be paid on
or as soon as practicable after the Distribution Date and subsequent
installments will be paid on or as soon as administratively practicable after
each of the anniversaries of the Distribution Date during your elected
installment period. You may change an election you make pursuant to this

 

3

 

Section IV(b) (or
you may make an initial election in the event that you did not elect a form of
payment at the time of your award and, accordingly, your Units were subject to
the lump sum default payment rule) by filing a new written election with the
Committee; provided that you must also elect a later Distribution Date pursuant
to Section IV(a) as to any Units that are subject to such election
and in no event may such an election result in an acceleration of
distributions within the meaning of Section 409A of the Code so as to
prevent application of the penalty and interest provisions of Section 409A(a)(1)(B) of
the Code. Distribution Elections may only be made by delivering a written
election to the Company care of its General Counsel in the form attached
as Exhibit B hereto.

 

(c)                                  Hardship
Distribution. If you experience an Unforeseeable Emergency (as defined
below) you may elect to receive immediate distribution of some or all or
your vested Units upon such Unforeseeable Emergency. Distribution upon an
Unforeseeable Emergency shall be made no later than thirty (30) days following
written notice to the Company care of its General Counsel of the Unforeseeable
Emergency. For purposes of this Agreement, an “Unforeseeable Emergency” shall
mean a severe financial hardship resulting from (i) an illness or accident
of you, your spouse, or your dependent (as defined in Section 152(a) of
the Code), (ii) loss of your property due to casualty, or (iii) any
other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond your control, all as reasonably determined by the Committee in
good faith. No distribution shall be made in respect of an Unforeseeable
Emergency to the extent that such Unforeseeable Emergency is or may be
relieved through reimbursement or compensation by insurance or otherwise or by
liquidation of your assets (to the extent such liquidation would not itself
cause a severe financial hardship). Any distribution of your vested Units as a
result of an Unforeseeable Emergency shall be limited to the amount reasonably
necessary to relieve the Unforeseeable Emergency (which may include
amounts necessary to pay any federal, state or local income taxes or penalties
reasonably anticipated to result from the distribution).

 

IV.                                 Dividend
Equivalent Rights. During such time as each Unit remains outstanding and
prior to the distribution of such Unit in accordance with Section IV, you
will have the right to receive, in cash, with respect to such Unit, the amount
of any cash dividend paid on a share of Common Stock (a “Dividend Equivalent
Right”). You will have a Dividend Equivalent Right with respect to each
Unit that is outstanding on the record date of such dividend. Dividend
Equivalent Rights will be paid to you at the same time or within 30 days after
dividends are paid to stockholders of the Company. Dividend Equivalent Rights
will not be paid to you with respect to any Units that are forfeited pursuant
to Sections I and II, effective as of the date such Units are forfeited. You
will have no Dividend Equivalent Rights as of the record date of any such cash
dividend in respect of any Units that have been paid in Common Stock; provided
that you are the record holder of such Common Stock on or before such record
date.

 

V.                                     Transferability.
No benefit payable under, or interest in, the Units or this Agreement shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge and any such attempted action shall be void and
no such benefit or interest shall be, in any manner, liable for, or subject to,
your or your beneficiary’s debts, contracts, liabilities or torts; provided, however, nothing in this Section VI shall
prevent transfer of your Units by will or by applicable laws of descent and
distribution. You may designate a beneficiary to receive distribution of
your vested Units upon your death by submitting a written

 

4

 

beneficiary
designation to the Committee in the form attached hereto as Exhibit B.
You may revoke a beneficiary designation by submitting a new beneficiary
designation.

 

VI.                                 Withholding.
You will be required to pay in cash or deduction from other compensation
payable to you by the Company any sums required by federal, state or local tax law
to be withheld with respect to the issuance, vesting or payment of Units and
the payment of Dividend Equivalent Rights. At your election and in satisfaction
of the foregoing requirement, the Company will withhold shares of Common Stock
underlying the Units and otherwise issuable in accordance with this Agreement,
in the manner prescribed by, and subject to the limitations of, Section 12
of the Plan, in satisfaction of such withholding obligations.

 

VII.                             No
Contract for Employment. This Agreement is not an employment or service
contract and nothing in this Agreement shall be deemed to create in any way
whatsoever any obligation on your part to continue in the employ or
service of the Company, or of the Company to continue your employment or
service with the Company.

 

VIII.                         Notices.
Any notices provided for in this Agreement or the Plan, including a
Distribution Election, shall be given in writing and shall be deemed
effectively given upon receipt if delivered by hand or, in the case of notices
delivered by United States mail, five (5) days after deposit in the United
States mail, postage prepaid, addressed, as applicable, to the Company or if to
you, at such address as is currently maintained in the Company’s records or at
such other address as you hereafter designate by written notice to the Company.

 

IX.                                Plan.
The provisions of the Plan are hereby made a part of this Agreement. In
the event of any conflict between the provisions of this Agreement and those of
the Plan, the provisions of this Agreement shall control.

 

X.                                    Entire
Agreement. This Agreement, together with the Employment Agreement, contains
the entire understanding of the parties in respect of the Units and supersedes
upon its effectiveness all other prior agreements and understandings between the
parties with respect to the Units. In the event of any discrepancy between this
Agreement and the Employment Agreement, the Employment Agreement shall control.

 

XI.                                Amendment.
This Agreement may be amended by the Committee; provided, however that no
such amendment shall, without your prior written consent, alter, terminate,
impair or adversely affect your rights under this Agreement.

 

XII.                            Governing
Law. This Agreement shall be construed and interpreted, and the rights of
the parties shall be determined, in accordance with the laws of the State of
California, without regard to conflicts of law provisions thereof.

 

XIII.                        Tax
Consequences. You may be subject to adverse tax consequences as a
result of the issuance, vesting and/or distribution of your Units. YOU ARE
ENCOURAGED TO CONSULT A TAX ADVISOR AS TO THE TAX CONSEQUENCES OF YOUR UNITS
AND SUBSEQUENT DISTRIBUTION OF COMMON STOCK.

 

XIV.                        Construction.
To the extent that this Agreement is subject to Section 409A of the Code,
you and the Company agree to cooperate and work together in good faith to
timely amend

 

5

 

this Agreement to
prevent application of the penalty and interest provisions of Section 409A(a)(1)(B) of
the Code. In the event that you and the Company do not agree as to the
necessity, timing or nature of a particular amendment intended to prevent
application of the penalty and interest provisions of Section 409A(a)(1)(B) of
the Code, reasonable deference will be given to your reasonable interpretation
of such provisions. Notwithstanding anything to the contrary contained in this
Agreement or the Plan, in the event that you are to receive a payment hereunder
in connection with your termination of employment (other than due to your
death) at a time when you are a “specified employee” (within the meaning of Section 409A
of the Code), the Company shall delay the making of such payment to a date that
is not earlier than the first to occur of six months and one day after your “separation
from service” (within the meaning of Section 409A of the Code) or the date
of your death.

 

[Remainder
of page intentionally left blank]

 

6

 

Very truly yours,

 

	 
	
   

  	
  HEALTH CARE PROPERTY
  INVESTORS, INC.

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
  By:

  	
   

  	 

	 
	
   

  	
  Name:

  	 

	 
	
   

  	
  Title:

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
   

  	 

	
   

  	
  And:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
						

 

Accepted and Agreed,

effective as of the date first written above.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  

 

7

 

[CEO THREE
YEAR CLIFF VESTING]

 

EXHIBIT A

 

PERFORMANCE
GOALS

 

	
  Funds From Operations Per Share

  	
   

  	
  Aggregate Percentage Forfeited

  	
   

  
	
  [$       ] or greater

  	
   

  	
  0

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  2

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  4

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  6

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  8

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  10

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  12

  	
  %

  
	
  Equal to or greater than [$       ]
  but less than [$       ]

  	
   

  	
  14

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  16

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  18

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  20

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  22

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  24

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  26

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  28

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  30

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  32

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  34

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  36

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  38

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  40

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  50

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  60

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  70

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  80

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  90

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  100

  	
  %

  

 

A-1

 

EXHIBIT B

 

HEALTH
CARE PROPERTY INVESTORS, INC.

2000 STOCK INCENTIVE PLAN

 

RESTRICTED
STOCK UNITS

DISTRIBUTION ELECTION AND BENEFICIARY DESIGNATION FORM

 

Name:

 

Social Security No.: 

 

In connection with your award of Performance
Restricted Stock Units on [                ,
2006] under the Health Care Property Investors, Inc. 2000 Stock Incentive
Plan, as amended and/or restated from time to time (the “Plan”), you have the
option of selecting the timing and form of payment of the shares of Common
Stock underlying your vested Units.

 

Please complete this election form and
return it to Edward J. Henning, the Company’s General Counsel and Corporate
Secretary.

 

Deferral of Distribution Date

 

Unless you elect otherwise, the Distribution Date for
your Units that vest will be the vesting date of such Units; provided that in
no event shall the Distribution Date occur earlier than the date of the
Committee Determination with respect to such Units. You may elect a new
Distribution Date with respect to your Units that vest by completing the information
request below. Please note that, subject to the restrictions
set forth below and in the Agreement, your new Distribution Date can take any
of the following forms:

 

•                                          You may elect
a date certain for your Distribution Date (e.g., January 1, 2010),

 

•                                          You may elect
that your Distribution Date will be the date of your death or termination of
employment, or

 

•                                          You may elect
a Distribution Date that is the earlier of two dates/events (e.g., the earlier
of January 1, 2010, or termination of your employment).

 

If you do not elect a
Distribution Date on or before the Grant Date, you will be deemed to have
elected distribution of your vested Units on or as soon as administratively
practical after the vesting date of your Units. If, after the Grant Date, you
want to change the Distribution Date with respect to any of your vested Units,
your new election must be made at least one year prior to the then-existing
Distribution Date, the new Distribution Date you elect must be at least five
years after the then-existing Distribution Date, and the change must otherwise
satisfy the “subsequent election” rules of Section 409A(a)(4)(C) of
the Code. If your election to defer your Distribution Date is not timely, it
will not be valid.

 

B-1

 

You acknowledge and understand
that by electing a new Distribution Date, you are hereby revoking the
then-existing Distribution Date. You further acknowledge and agree that the
distribution of the shares of Common Stock underlying your Units may coincide
with a period during which you are prohibited from selling, disposing or
otherwise transferring such shares pursuant to the Company’s Insider Trading
Policy, or by law, and therefore, you may not be able to sell, dispose or
otherwise transfer such shares to pay any sums required by federal, state or
local tax law to be withheld with respect to the issuance of such shares.

 

I elect the following Distribution Date with respect to the shares of
Common Stock underlying my Units:                                
                        (Specify “Vesting Date” if you desire payment of the vested Units on or
as soon as administratively practical after the vesting date of the Units. Otherwise,
indicate the Distribution Date you elect. In all events your election is
subject to the rules stated above (including, without limitation, the
5-year deferral requirement set forth above if you are electing a change after
the Grant Date).

 

Form of Payment

 

Distribution of all of your vested Units will be made
in shares of Common Stock in a lump sum on or as soon as practicable after the
Distribution Date with respect to such Units. You may, however, elect at the
time of your award to have vested Units distributed in the form of two or
more annual installments over a fixed number of years. For example, if you
elect to have your vested Units distributed in five installments, your vested
Units will be distributed to you in five equal payments on or as soon as
practicable after the Distribution Date and each of the first four
anniversaries of the Distribution Date.

 

If you elect to have your vested
Units distributed in installments, you must elect a number of equal annual
installments which will result in a distribution of at least 1,000 shares of
Common Stock per installment (otherwise, the number of installments you elected
will be reduced by the Company to produce a distribution of at least 1,000
shares of Common Stock per installment). If you would like to change a form of
distribution election you have made (or if you would like to make an initial form of
distribution election in the event that you did not make such an election at
the time of the award), your election must be made at least one year prior to
the then-existing Distribution Date, and you must elect a new Distribution Date
that is at least five years after the then-existing Distribution Date. If
your election to defer your Distribution Date is not timely, it will not be
valid. Furthermore, if you are changing an existing form of distribution
election, your election change cannot result in an acceleration (within
the meaning of Section 409A of the Code) of payments, and the change must
otherwise satisfy the “subsequent election” rules of Section 409A(a)(4)(C) of
the Code.

 

I elect the following number of annual installments with respect to the
distribution of the shares of Common Stock underlying my Units:                                       .

 

B-2

 

Beneficiary Designation

 

I hereby designate the following individual as
beneficiary to receive distribution of my vested Units, if any, in the event of
my death. Distribution of such vested Units will be in the form, and on the
Distribution Date(s), in effect with respect to such vested Units as of the
date of my death.

 

	
  Beneficiary Information

   

  Name:                                                                                                                                                                                                         

  (Please print)                                                                    Last                                                                                                                                                                         First                                                                                                                                                                                                                                                                      Middle
  Initial

   

  Sex:            Relationship to
  Participant:

   

  Social Security No.:                                                      Date of Birth:

   

  Address:

   

  City:                                                                            State:                                       Zip Code:                                                             

  

 

Please retain a copy of this Distribution Election Form for
your records.

 

	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
  Date Signed

  

 

B-3Exhibit 10.1

 

CHANGE IN CONTROL AND TERM EMPLOYMENT AGREEMENT

 

AGREEMENT by and between AmeriVest Properties Inc.,
a Maryland corporation (the “Company”), with offices at 1780 South Bellaire
Street, Suite 100, Denver, Colorado 80222, and Sheri Henry (the “Executive”),
an individual residing in the State of Colorado, dated as of the 26th of April,
2006.

 

WHEREAS, the Company recognizes that the current
business environment makes it difficult to attract and retain highly qualified
executives unless a certain degree of security can be offered to such
individuals against organizational and personnel changes which frequently
follow changes in control of a corporation; and

 

WHEREAS, even rumors of acquisitions or mergers may cause
executives to consider major career changes in an effort to assure financial
security for themselves and their families; and

 

WHEREAS, the Company desires to assure fair
treatment of its executives in the event of a Change in Control (as defined
below) and to allow them to make critical career decisions without undue time
pressure and financial uncertainty, thereby increasing their willingness to
remain with the Company notwithstanding the outcome of a possible Change in
Control transaction; and

 

WHEREAS, the Company recognizes that its executives
will be involved in evaluating or negotiating any offers, proposals or other
transactions which could result in Changes in Control of the Company and
believes that it is in the best interest of the Company and its stockholders
for such executives to be in a position, free from personal financial and
employment considerations, to be able to assess objectively and pursue
aggressively the interests of the Company’s stockholders in making these
evaluations and carrying on such negotiations; and

 

WHEREAS, the Board of Directors (the “Board”) of the
Company believes it is essential to provide the Executive with compensation
arrangements upon a Change in Control which provide the Executive with
individual financial security and which are competitive with those of other
corporations, and in order to accomplish these objectives, the Board has caused
the Company to enter into this Agreement.

 

NOW THEREFORE, the parties, for good and valuable
consideration and intending to be legally bound, agree as follows:

 

1.                                       Employment and Compensation. Upon and subject to the terms provided
herein, Company agrees to employ Executive, and Employee hereby agrees to be
employed by Company, as Company’s Chief Financial Officer, as set forth in Section 4
of this Agreement.

 

2.                                       Operation and Term of
Agreement. This Agreement
shall be effective immediately upon its execution. This Agreement may be
terminated by the Company upon 24 months’ advance written notice to the
Executive, except as otherwise provided in this Agreement; and provided,
however, that after a Change in Control of the Company during the term of this
Agreement, this Agreement shall remain in effect until all of the obligations
of the

 

 

parties under the Agreement are satisfied and the Protection Period has
expired. Prior to a Change in Control this Agreement shall immediately
terminate upon termination of the Executive’s employment or upon the Executive’s
ceasing to be an elected officer of the Company.

 

3.                                       Certain Definitions. For purposes of this Agreement, the following
words and phrases shall have the following meanings:

 

(a)                                  “Cause” shall mean (i) the continued
failure by the Executive to perform her material responsibilities and
duties toward the Company (other than any such failure resulting from the
Executive’s incapacity due to physical or mental illness), (ii) the
engaging by the Executive in willful or reckless conduct that is demonstrably
injurious to the Company monetarily or otherwise, (iii) the conviction of
the Executive of a felony, or (iv) the commission or omission of any act
by the Executive that is materially inimical to the best interests of the
Company and that constitutes on the part of the Executive common law fraud
or malfeasance, misfeasance, or nonfeasance of duty; provided, however, that “cause”
shall not include the Executive’s lack of professional qualifications. For
purposes of this Agreement, an act, or failure to act, on the Executive’s part shall
be considered “willful” or “reckless” only if done, or omitted, by him not in
good faith and without reasonable belief that her action or omission was in the
best interest of the Company. The Executive’s employment shall not be deemed to
have been terminated for “cause” unless the Company shall have given or
delivered to the Executive (A) reasonable notice setting forth the reasons
for the Company’s intention to terminate the Executive’s employment for “cause,”
(B) a reasonable opportunity, at any time during the 30-day period after
the Executive’s receipt of such notice, for the Executive, together with her
counsel, to be heard before the Board, and (C) a Notice of Termination (as
defined in Section 12 below) stating that, in the good faith opinion of
not less than a majority of the entire membership of the Board, the Executive
was guilty of the conduct set forth in clauses (i), (ii), (iii) or (iv) of
the first sentence of this Section 3(a).

 

(b)                                 “Change in Control” shall mean a change in
control under Code Section 409A(a)(2). As provided in Internal Revenue
Service Notice 2005-1 and Proposed Regulations Sections 1.409A-3(g)(5), a
change of control would include (A) any person (or more than one person
acting as a group) becoming the beneficial owner, directly or indirectly, of
securities of the Company representing 35 percent or more of the combined
voting power of the Company’s then outstanding securities; or (B) during
any 12-month period, the following persons cease for any reason to constitute a
majority of the Board:  individuals who
at the beginning of such period constitute the Board and new Directors each of
whose election to the Board or nomination for election to the Board by the
Company’s stockholders was approved by a vote of more than 50 percent of the
Directors then still in office who either were Directors at the beginning of
the period or whose election or nomination for election was previously so
approved; or (C) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation that would result in the voting securities of the Company
outstanding immediately before the merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the Company or of such surviving entity) at least eighty percent
(80%) of the total voting power represented by the voting securities of the
Company or such surviving entity outstanding immediately after such merger or
consolidation. A Change of Control will be deemed to have occurred if the

 

2

 

stockholders of the Company approve a plan of complete liquidation of
the Company or an agreement for the sale or disposition by the Company of all
or substantially all of the Company’s assets.

 

(c)                                  “Code” shall mean the Internal Revenue Code
of 1986, as amended.

 

(d)                                 “Disability,” for purposes of this Agreement,
shall mean total disability as defined in any long-term disability plan
sponsored by the Company in which the Executive participates, or, if there is
no such plan or it does not define such term, then it shall mean the physical
or mental incapacity of the Executive that prevents him from substantially
performing the duties of the office or position to which he was elected or
appointed by the Board for a period of at least 180 days and the incapacity is
expected to be permanent and continuous through the Executive’s 65th birthday.

 

(e)                                  The “Change in Control Date” shall be any
date during the term of this Agreement on which a Change in Control occurs. Anything
in this Agreement to the contrary notwithstanding, if the Executive’s
employment or status as an elected officer with the Company is terminated
within six (6) months before the date on which a Change in Control occurs,
and it is reasonably demonstrated that such termination (i) was at the
request of a third party who has taken steps reasonably calculated or intended
to effect a Change in Control or (ii) otherwise arose in connection with
or anticipation of a Change in Control, then for all purposes of this Agreement
the “Change in Control Date” shall mean the date immediately before the date of
such termination.

 

(f)                                    “Parent” means any entity that directly or
indirectly through one or more other entities owns or controls more than 50
percent of the voting stock or common stock of the Company.

 

(g)                                 “Protection Period” means the period
beginning on the Change in Control Date and ending on the last day of the 30th
full calendar month following the Change in Control Date.

 

(h)                                 “Subsidiary” means a company 50 percent or more
of the voting securities of which are owned, directly or indirectly, by the
Company.

 

4.                                       Term Employment
Compensation.

 

(a)                                  Term of Employment. Subject to the provisions set forth in this
Agreement, the Company agrees to employ Executive and Executive agrees to be
employed by Company as its Chief Financial Officer, such position to become
effective June 1, 2006 through December 31, 2006 (“Employment Period”).
Executive’s Employment Period may be extended, in three (3) month
increments, at the option of the Company. Any extension to Executive’s
Employment Period must be in writing, signed by both the Executive and the
Company.

 

(b)                                 Base Salary. As compensation for the employment services
rendered pursuant to this Agreement, beginning June 1, 2006 until December 31,
2006, Company agrees to pay Executive a base salary at an annual rate of
$100,000.00, (the “Annual Base Salary”), payable in installments in accordance
with the Company’s standard payroll practices, subject to such

 

3

 

payroll and withholdings deductions as are required by law or
authorized by Executive. Executive shall be entitled to participate in all
benefit plans in which she is currently eligible to participate as of the date
hereof.

 

(c)                                  Bonus. Executive shall be eligible for a bonus
payable in cash in an amount of up to $10,000.00 per quarter during the
Employment Period, and thereafter at an amount to be determined by the Board of
Directors, based on Executive’s successful completion of various criteria as
determined by the Chief Executive Officer (“Bonus”, and collectively with the
Annual Base Salary, the “Annual Salary,” provided that if a Bonus has not yet
been determined for a particular period, the prior period Bonus shall apply).

 

(d)                                 Office and Duties. Executive shall work under the direction of
the Chief Executive Officer and shall perform such tasks commensurate with
her position as may from time to time be assigned by the Board and the
Company. Executive shall devote all business time, labor, skill, undivided
attention, and best ability to the performance of Executive’s duties hereunder
in a manner that will faithfully and diligently further the business and
interests of the Company. Executive shall not directly or indirectly pursue any
other business activity that she is not otherwise involved in as of the date of
this Agreement without the prior written consent of the Company, through its
Chief Executive Officer and/or Board, with the exception of passive personal
investments not in breach of any other term or provision hereof.

 

5.                                       Benefits Upon Termination
Within a Protection Period. If,
during a Protection Period, 1) the Company terminates the Executive’s
employment other than for Cause or Disability or other than as a result of the
Executive’s death, or 2) upon the expiration of Executive’s Employment Period,
Company fails to extend to Executive an offer of continued employment with
Company for period of at least three (3) months, at a total minimum annual
compensation rate of $160,000.00, and provided Executive executes on the date
of her termination of employment an Addendum to this Agreement wherein she
ratifies all the provisions of this Agreement and agrees that she shall be
legally bound by all releases and all other terms set forth in this Agreement
as of the date of Executive’s termination of employment, the Company shall,
subject to Section 9, pay to the Executive in a lump sum in cash, within
10 days after the date of termination, the aggregate of the following amounts:

 

(a)                                  all earned and determinable, but unpaid,
wages and all earned and determinable, but unused, vacation through the date of
Executive’s termination, payable at the rate in effect at the time of Executive’s
termination;

 

(b)                                 a severance amount equal to 1.0 times the
Executive’s “Annual Compensation.”  For
purposes of this Section 5, “Annual Compensation” shall be an amount equal
to the sum of (i) the Executive’s annual base salary from the Company and
its Subsidiaries (including scheduled base salary increases or increases that
are budgeted and approved either by the Compensation Committee of the Board of
Directors or by the Board of Directors of the Company in advance of the Change
of Control Date), annualized for any partial year, and calculated based on the average
for the three year period ending on the December 31 after the Change in
Control Date (or of such shorter period if the Executive has not been employed
as an Executive since the commencement of the full three year period); and (ii) the
amount of annual bonus accrued by the Company under Section 4(c) above,
annualized for any partial year; and

 

4

 

(c)                                  upon surrender by the Executive of her
outstanding options to purchase common shares of the Company (“Common Shares”)
granted to the Executive by the Company (the “Outstanding Options”) and any
stock appreciation rights (“SARs”), if any, an amount in respect of each
Outstanding Option and SAR (whether vested or not) equal to the difference
between the exercise price of such Outstanding Options and SARs and the higher
of (x) the fair market value of the Common Shares at the time of such
termination (but not less than the closing price for the Common Shares on the
New York Stock Exchange, or such other national stock exchange on which such
shares may be listed, on the last trading day such shares traded prior to
the date of termination), and (y) the highest price paid for Common Shares
or, in the cases of securities convertible into Common Shares or carrying a right
to acquire Common Shares, the highest effective price (based on the prices paid
for such securities) at which such securities are convertible into Common
Shares or at which Common Shares may be acquired, by any person or group
whose acquisition of voting securities has resulted in a Change in Control of
the Company; provided, however, that this Section 5(c) shall not
apply to the surrender of any Outstanding Option that is an incentive stock
option (within the meaning of section 422 of the Code).

 

(d)                                 Notwithstanding the foregoing provisions of
this Section 5, if, during a Protection Period and upon the expiration of
Executive’s Employment Period, Company does extend to Executive an offer of
continued employment with Company for a period of at least three (3) months,
at a total minimum annual compensation rate of $160,000.00, which Executive
declines, Executive will not be eligible for nor receive any severance as
outlined in this Section 5.

 

(e)                                  In the event Executive receives benefits
pursuant to this Section 5, upon reasonable notice, Executive shall
provide telecommuting consulting services to the Company of up to four (4) hours
per week or sixteen (16) hours per month, for a period of six (6) months
from the date of any award of benefits pursuant to this Section 5, and
shall attend in person, unless otherwise prohibited due to other conflicting
employment commitments, meetings in Denver as mutually agreed upon by the
Parties.

 

If
the Executive is terminated pursuant to this Section 5 and, in connection therewith,
the Executive and the Company enter into a noncompetition agreement or a
nonsolicitation agreement, unless otherwise agreed by the Executive and the
Company, the amount payable to the Executive under the preceding provisions of
this Section 5 shall be reduced by the amount payable to the Executive
under such agreement(s).

 

6.                                       Executive’s Right to
Voluntarily Leave Employment. Executive
shall have the right to voluntarily terminate the Executive’s employment with
the Company at the Executive’s sole discretion (“Executive Termination Right”).
In the event the Executive exercises her Executive Termination Right, Executive
will not be eligible for nor receive any severance, compensation or other
monies other than payment of any earned and determinable, but unpaid, wages and
all earned and determinable, but unused, vacation through the date of Executive’s
termination. Notwithstanding a Change in Control, Executive acknowledges and
agrees that if she exercises her Executive Termination Right at any time before,
during or after the Protection Period, she will forfeit any severance to which
she may have otherwise been eligible for under Section 5 herein.

 

5

 

7.                                       Non-exclusivity of Rights. Nothing in this Agreement shall prevent or
limit the Executive’s continuing or future participation in any benefit, bonus,
incentive, or other plans, practices, policies, or programs provided by the
Company or any of its Subsidiaries and for which the Executive may qualify,
nor shall anything in this Agreement limit or otherwise affect such rights as
the Executive may have under any stock option or other agreements with the
Company or any of its Subsidiaries. Amounts that are vested benefits or that
the Executive is otherwise entitled to receive under any plan, practice,
policy, or program of the Company or any of its Subsidiaries at or subsequent
to the date of termination shall be payable in accordance with such plan,
practice, policy, or program; provided, however, that the Executive shall not
be entitled to severance pay, or benefits similar to severance pay, under any
plan, practice, policy, or program generally applicable to employees of the
Company or any of its Subsidiaries.

 

8.                                       Full Settlement; No
Obligation to Seek Other Employment; Legal Expenses. The Company’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
under this Agreement shall not be affected by any set-off, counterclaim,
recoupment, defense, or other claim, right, or action that the Company may have
against the Executive or others. The Executive shall not be obligated to seek
other employment or take any other action by way of mitigation of the amounts
payable to the Executive under any of the provisions of this Agreement. The
Company agrees to pay, upon written demand by the Executive, all legal fees and
expenses the Executive may reasonably incur as a result of any dispute or
contest (regardless of outcome) by or with the Company or others regarding the
validity or enforceability of, or liability under, any provision of this
Agreement. In any such action brought by the Executive for damages or to
enforce any provisions of this Agreement, she shall be entitled to seek both
legal and equitable relief and remedies, including, without limitation,
specific performance of the Company’s obligations under this Agreement, in her
sole discretion.

 

9.                                       Cut Back in Benefits. Notwithstanding any other provision of this
Agreement, the cash lump sum payment and other benefits otherwise to be
provided pursuant to Sections 4 and 5 of this Agreement (the “Severance Benefit”)
shall be reduced as described below if independent accountants for the Company
(the “Accountants”) determine (A) that Executive would, by reason of section 4999
of the Code, be required to pay an excise tax on any part of the Severance
Benefit or any part of any other payment or benefit to which Executive is
entitled under any plan, practice, policy, or program, and (B) the amount
of the Severance Benefit that Executive would retain on an after-tax basis,
present value basis would be increased as a result of such reduction by an
amount of at least $5,000. If the Severance Benefit is required to be reduced,
it shall be reduced only to the extent required, in the opinion of the
Accountants, to prevent the imposition upon the Executive of the tax imposed
under section 4999 of the Code. The Company shall determine which elements
of the Severance Benefit shall be reduced to conform to the provisions of
this Section 9. Any determination made by the Accountants pursuant to this
Section 9 shall be conclusive and binding on the Executive. The Executive
shall promptly provide to the Company such information regarding the Executive
tax situation as the Company shall reasonably request in order to allow the
Accountants to perform calculations required by this Section 9.

 

10.                                 Confidential Information. The Executive shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge, or data relating to

 

6

 

the Company or any of its Subsidiaries, and their respective
businesses, obtained by the Executive during the Executive’s employment by the
Company or any of its Subsidiaries and that has not become public knowledge
(other than by acts of the Executive or her representatives in violation of
this Agreement). After the date of termination of the Executive’s employment
with the Company, the Executive shall not, without the prior written consent of
the Company, communicate or divulge any such information, knowledge, or data to
anyone other than the Company and those designated by it, and Executive’s
professional advisers who will sign a written statement acknowledging that they
are bound by this confidentiality provision to the same extent as applicable to
Executive. If any of Executive’s professional advisers disclose the Company’s
confidential information, such act shall be deemed as if Executive herself has
disclosed the Company’s confidential information thereby entitling Company the
right to pursue any and all appropriate legal action against Executive for
disclosure of confidential information by her professional advisers. Any legal
action taken by Company against Executive for disclosure of confidential
information by her professional advisers shall not preclude Company’s right to
pursue any and all appropriate legal action against Executive’s professional
advisers. In no event shall an asserted violation of the provisions of this Section 10
constitute a basis for deferring or withholding any amounts otherwise payable
to the Executive under this Agreement.

 

11.                                 Successors.

 

(a)                                  This Agreement is personal to the Executive
and without the prior written consent of the Company shall not be assignable by
the Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
legal representatives or successor(s) in interest. The Executive may designate
a successor (or successors) in interest to receive any and all amounts due the
Executive in accordance with this Agreement should the Executive be deceased at
any time of payment. Such designation of successor(s) in interest shall be made
in writing and signed by the Executive, and delivered to the Company pursuant
to Section 16(b). This Section 11(a) shall not supersede any
designation of beneficiary or successor in interest made by the Executive, or
separately covered, under any other plan, practice, policy, or program of the
Company.

 

(b)                                 This Agreement shall inure to the benefit of
and be binding upon the Company and its successors and assigns.

 

(c)                                  The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
to all or substantially all of the business or assets of the Company and any
Parent of the Company or any successor and without regard to the form of
transaction utilized to acquire the business or assets of the Company, to
assume expressly and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if
no such succession or parentage had taken place. As used in this Agreement, “Company”
shall mean the Company as defined above and any successor to its business or
assets as aforesaid (and any Parent of the Company or any successor) that is
required by this clause to assume and agree to perform this Agreement or
which otherwise assumes and agrees to perform this Agreement.

 

12.                                 Notice of Termination. Any termination of the Executive’s employment
by the Company for Cause shall be communicated by Notice of Termination to the
Executive in

 

7

 

accordance with Section 16(b) of this Agreement. For purposes
of this Agreement, a “Notice of Termination” means a written notice that (i) indicates
the specific termination provision in this Agreement relied upon, (ii) sets
forth in reasonable detail the facts and circumstances claimed to provide a basis
for termination of the Executive’s employment under the provision so indicated,
and (iii) if the date of termination is other than the date of receipt of
such notice, specifies the termination date (which date shall be not more than
15 days after the giving of such notice).

 

13.                                 Requirements and Benefits if
Executive Is Employee of Subsidiary of Company. If the Executive is an employee of any
Subsidiary of the Company, he shall be entitled to all of the rights and
benefits of this Agreement as though he were an employee of the Company and the
term “Company” shall be deemed to include the Subsidiary by whom the Executive
is employed. The Company guarantees the performance of its Subsidiary under
this Agreement.

 

14.                                 Arbitration. The Company and the Executive shall attempt
to resolve between them any dispute that arises under this Agreement. If they
cannot agree within ten days after either party submits a demand for
arbitration to the other party, then the issue shall be submitted to
arbitration with each party having the right to appoint one arbitrator and
those two arbitrators mutually selecting a third arbitrator. The rules of
the American Arbitration Association for the arbitration of commercial disputes
shall apply and the decision of two of the three arbitrators shall be final. The
arbitrators must reach a decision within 60 days after the selection of the
third arbitrator. The arbitration shall take place in Denver, Colorado. The
arbitrators shall apply Colorado law.

 

15.                                 Releases in Exchange for any
Severance Payment Under This Agreement.

 

(a)                                  In exchange for the benefits payable to
Executive as set forth in Section 5 of this Agreement, Executive does
hereby voluntarily and knowingly release and discharge the Company and its
successors, subrogees, assigns, principals, agents, partners, heir s,
employees, shareholders, officers, directors, subsidiaries, affiliates,
divisions, associates and attorneys (collectively the “Released Parties”) from
any and all claims, actions, causes of action, liabilities, demands, rights,
damages, costs, attorneys’  fees,
expenses and controversies of every kind and description through the date of
this Agreement. These releases shall include, by way of example and not
limitation, all claims which arise out of, relate to, or are based on (i) Executive’s
employment and/or association with the Released Parties and the termination
thereof, (ii) any and all contracts, binding promises and statements to,
from or between the Parties, (iii) the common laws of any state, (iv) Title
VII of the Civil Rights Act of 1964, as amended, (v) claims under the
Civil Rights Act of 1991, (vi) claims under 42 U.S.C. § 1981, § 1981a,
§ 1983, § 1985, or § 1988, (vii) the Age Discrimination in
Employment Act of 1967, as amended, (viii) the Employee’s Income
Retirement Security Act of 1974, as amended, (ix) claims under the Older
Workers Benefit Protection Act of 1990, and (x) claims under all other local,
state and federal statutes, any of which could be raised, filed and/or brought
in any court of competent jurisdiction and/or in any local, state and federal
administration agency or administration. However, Executive does not release
any claims she may have under any stock option or warrant agreements.

 

8

 

(i)                                     Nothing contained herein shall be construed
as a release of any claim Executive may have to unemployment benefits. Executive
may make a claim for such benefits, and the Released Parties will provide
truthful information in response to questions from the responsible State
agency.

 

(ii)                                  Notwithstanding the recitation of the claims
set forth in this Section 15, or whether quoted herein or not, and for the
purpose of effectuating a full and final release herein between the Parties,
Executive expressly acknowledges that all releases agreed to by Executive in
this Section 15 are intended to include and contemplate the
extinguishment, without limitation, of all claims which she now has or does not
know or suspect to exist in her favor at the time of the execution hereof.

 

(b)                                 Executive warrants and represents as follows:

 

(i)            Executive has full and complete legal capacity to enter
into this Agreement, has read this Agreement, has had a reasonable time to
consider its terms, and agrees to the conditions and obligations set forth in
it.

 

(ii)                                  Executive has had twenty-one (21) days to
consider the Agreement, and, if Executive executes this Agreement within less
than twenty-one (21) days from the date of receipt, it is with the express
understanding that Executive had the full twenty-one (21) days available if so
desired. Further, Executive waives all rights to a twenty-one (21) day period
to consider the terms of Employee’ s release of claims under the Age
Discrimination in Employment Act (“ADEA”) if Executive signs this Agreement
prior to the expiration of the twenty-one (21) day period.

 

(iii)                               Executive has not relied on any statement
made by the Company, its agents or representatives, either express or implied,
or by statement or omission, in making her decision to enter into this
Agreement. Executive voluntarily executes this Agreement after having been
advised by the Company to seek legal counsel, and has had full opportunity to
consult with legal counsel, and without being pressured or influenced by any
person, or by any statement or representation of any person acting on behalf of
another Party, including the officers, agents and attorneys for any other
Party.

 

(iv)                              Executive has been informed and understands
that (i) to the extent that this Agreement waives or releases any claims
Executive might have under the ADEA, Executive may rescind such waiver and
release within seven (7) calendar days of the execution of this Agreement,
and (ii) any such rescission must be in writing and hand delivered to the
Company, or, if sent by mail, postmarked within the seven (7) day period,
sent only by certified mail, return receipt requested, and addressed to the
Company.

 

(v)                                 This Agreement is subject to the terms of the
Older Workers Benefit Protection Act of 1990 (“OWBPA “). Executive acknowledges
and agrees that she is, voluntarily and with full knowledge of the consequences
of such release, releasing all claims, including any claims Executive has or
could have brought under the OWBPA and any claim(s) under the ADEA.

 

9

 

(vi)                              Executive acknowledges and agrees that this
Agreement is written in a manner intended to be understood, and that Executive
understands this Agreement.

 

(vii)                           Executive has had a full and fair opportunity
to investigate the facts underlying any claims that Executive believes she may have
against the Company. Executive enters into this Agreement acknowledging that
there may be facts of which she is not aware; but nonetheless enters into
this Agreement with the intent of providing the Company, and its affiliates,
with a full and final release of all known and unknown, suspected or
unsuspected, foreseen or unforeseen, matured or unmatured, liquidated or
unliquidated, claims, based on all known and unknown facts.

 

(c)                                  Termination of Employment. Notwithstanding any other provision of this
Agreement, Executive’s employment may be terminated by the Company or
Executive, as applicable, as follows:  (i) expiration
of the Employment Period; (ii) termination for Cause; (iii) termination
for Disability; (iv) termination upon a Change in Control; (v) termination
because of the death of Executive; (vii) termination without Cause; and (viii) resignation.
The Executive and the Company shall be bound by all provisions of this Agreement
specifically related to any benefit or obligation of Executive or the Company
under any of these circumstances.

 

16.                                 Miscellaneous.

 

(a)                                  This Agreement shall be governed by and
construed in accordance with the laws of the State of Colorado, without reference
to principles of conflict of laws. The captions of this Agreement are not part of
the provisions hereof and shall have no force or effect. This Agreement is the
entire agreement between the Parties. This Agreement supersedes all prior oral
or written promises or agreements between the Parties. This Agreement may not
be amended or modified otherwise than by a written agreement executed by the
Parties or their respective successors and legal representatives.

 

(i)                                     Notwithstanding the provisions of this Section 16(a),
provided Executive fulfills all conditions precedent to payment of a retention
bonus as set forth in Executive’s November 18, 2005 Retention Bonus and
Severance Letter, Executive will receive all retention bonus’ to which
Executive is eligible for and entitled to through June 30, 2006 as
outlined in Executive’s November 18, 2005 Retention Bonus and Severance
Letter. In all other respects, Executive’s November 18, 2005 Retention
Bonus and Severance Letter is merged into this Agreement and the terms of this
Agreement shall supersede all prior oral or written promises or agreements
between the Parties.

 

(b)                                 All notices and other communications under
this Agreement shall be in writing and shall be given by hand delivery to the
other party or by registered or certified mail, return receipt requested,
postage prepaid, to the addresses for each party as first written above or to
such other address as either party shall have furnished to the other in writing
in accordance with this Section 16(b). Notices and communications to the
Company shall be addressed to the attention of the Company’s Corporate
Secretary. Notice and communications shall be effective when actually received
by the addressee.

 

10

 

(c)                                  Whenever reference is made in this Agreement
to any specific plan or program of the Company, to the extent that the
Executive is not a participant in the plan or program or has no benefit accrued
under it, whether vested or contingent, as of the Change in Control Date, then
such reference shall be null and void, and the Executive shall acquire no
additional benefit as a result of such reference.

 

(d)                                 The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

 

(e)                                  The Company may withhold from any
amounts payable under this Agreement such Federal, state, or local taxes as
shall be required to be withheld pursuant to any applicable law or regulation.

 

(f)                                    The Executive’s failure to insist upon strict
compliance with any provision of this Agreement shall not be deemed to be a
waiver of such provision or any other provision.

 

(g)                                 Except as otherwise set forth herein, upon a
termination of the Executive’s employment or upon the Executive’s ceasing to be
an elected officer of the Company, in each case, prior to the Change in Control
Date, there shall be no further rights under this Agreement.

 

(h)                                 On or before the expiration of Executive’s
Employment Period, Employee shall return all Company property, including all
Company documents and records, in any form, and copies of all Company documents
and records, in any form, obtained or maintained during the course of her/her
employment with the Company.

 

(i)                                     The Parties agree not to make to any person
any statement that disparages the other Party, including, but not limited to,
statements regarding other Party’s work ethic, performance, financial fitness,
business practices, or business condition and/or similar disparaging statements
concerning the Company’s officers, directors, board members, employees, and
affiliates.

 

(j)                                     Executive covenants that she will not
initiate any lawsuit or proceeding, legal, administrative or other, or
otherwise assert any claim, action, cause of action, demand, right, or
controversy of any kind which she has herein released. Executive will not
provide any material assistance in any currently pending or subsequent
litigation against the Released Parties; provided, however, that this
restriction shall not prevent Executive from responding to compulsory process. In
the event Executive is subject to a compulsory disclosure, Executive shall
first give the Released Parties seventy-two (72) hours advance notice before
she makes any disclosure to allow the Released Parties to obtain appropriate
Protective Orders or other injunctive relief.

 

11

 

IN WITNESS WHEREOF, the Executive has set her hand
to this Agreement and, pursuant to the authorization from the Board, the
Company has caused this Agreement to be executed as of the day and year first
above written.

 

	
   

  	
  AMERIVEST PROPERTIES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Charles K. Knight

  	
   

  
	
   

  	
  Charles K. Knight, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Sheri Henry

  	
   

  
	
   

  	
  Sheri Henry

  

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]