Document:

Franklin Separation Agreement

Exhibit 10.1

SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release ("Agreement"), effective as of the date described in Section 13 below (the “Effective Date”), is made and entered into by and between Washington Real Estate Investment Trust ("WRIT") and Laura M. Franklin ("Employee").

WHEREAS, Employee has been employed by WRIT and has communicated her decision to retire from WRIT, and in order to provide for an orderly transition her employment will cease as set forth in this Agreement in connection with Employee’s resignation from WRIT; and

WHEREAS, the parties desire to amicably resolve all matters between them on a full and final basis;

NOW, THEREFORE, in consideration of the promises contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

1.  Resignation and Return of Property:  Employee will continue to serve as Executive Vice President Accounting & Administration of WRIT through the later of July 31, 2015 or the filing of WRIT’s Form 10-Q for the second quarter of 2015, or such earlier date as may be determined by the President & CEO and communicated to Employee in writing (the “Officer Resignation Date”). Commencing upon the Officer Resignation Date (a) Employee’s services will cease to be full-time and the level of Employee’s services are reasonably anticipated by the parties to be 20% (twenty percent) or less of the average level of services Employee performed for WRIT over the immediately preceding 36 (thirty-six) month period, as a result of which Employee shall incur a “Separation from Service” within the meaning of Section 409A of the Internal Revenue Code on the Officer Resignation Date, and (b) Employee shall not be required to work in WRIT’s primary offices except as may be requested by WRIT or as may be necessary to do her work.  After the Officer Resignation Date, Employee shall continue to serve as an employee of WRIT but not as an officer through December 31, 2015 (the “Resignation Date”), as of which date Employee’s employment shall terminate. Consistent with the foregoing, Employee shall resign from the following positions on the Officer Resignation Date (and shall execute all documents reasonably requested by WRIT to effectuate such resignations): (i) Executive Vice President Accounting & Administration, and (ii) all officer, board of director and board of manager positions (or comparable positions) with all affiliated entities of WRIT (collectively, “Affiliates”). From the Officer Resignation Date through the Resignation Date, Employee’s salary  will continue at its current level and Employee will continue to participate in all compensation plans of WRIT that are available to executive officers. However, Employee will not be eligible for payment under WRIT’s Executive Officer Severance  Pay Plan as of the Officer Resignation Date,  the Resignation Date or otherwise.

Employee will diligently pursue the responsibilities of the Executive Vice President Accounting & Administration of WRIT as long as she remains in such position. Thereafter until the Resignation Date, as an employee of WRIT, Employee will assist WRIT in (a) transitioning the roles of chief accounting& administration officer to the new person(s) elected by WRIT’s 

Board of Trustees and (b) performing such other duties as shall be reasonably requested by the President & CEO.  On or before the Resignation Date, Employee will return all property of WRIT and its Affiliates, and all copies, excerpts or summaries of such property, in her possession, custody or control. 

2.  Final Paycheck and Severance Benefits:  Subject to Employee’s compliance with and non-revocation of this Agreement, WRIT will provide Employee with the following benefits:

(a)  Accrued Salary and Vacation. WRIT will pay Employee for all earned but unpaid salary and vacation accrued up to the Resignation Date in accordance with its normal payroll practices.

(b)  2012 STIP and 2013 STIP.  All of Employee’s restricted shares have already been issued pursuant to the provisions of the WRIT’s Short-Term Incentive Plan dated January 1, 2012 (the “2012 STIP”) for the 2012 and 2013 performance years and any restricted shares that remain unvested will be fully vested as if Employee retired on the Resignation Date pursuant to the provisions of Section 4.4 of the 2012 STIP.

(c)   2014 STIP.  WRIT will pay to Employee in 2015 by March 15, 2015, all compensation (if any) earned by Employee during the 2014 performance period pursuant to the provisions of the WRIT’s Short-Term Incentive Plan dated January 1, 2014 (the “STIP”).  Any restricted shares with respect to the 2014 performance period will be issued by March 15, 2015 and will become fully vested as of the Resignation Date as if Employee retired on the Resignation Date pursuant to the provisions dealing with retirement in Section 4.4 of the STIP. 

(d) 2015 STIP.  WRIT will pay to Employee in 2016 by March 15, 2016, all compensation (if any) earned by Employee during the 2015 performance period pursuant to the provisions of the STIP.  Any restricted shares with respect to the 2015 performance period will be issued by March 15, 2016 and will be fully vested as if Employee retired on the Resignation Date pursuant to the provisions dealing with retirement in Section 4.4 of the STIP.

(e)  2009 LTIP.  All of Employee’s unvested restricted stock units under the 2009 LTIP will be vested by February 18, 2015 and all of Employee’s restricted stock units (including previously vested restricted stock units that have not yet been paid) will be issued in common shares of WRIT by July 31, 2015 pursuant to WRIT’s Long-Term Incentive Plan effective January 1, 2009.

(f)  2014 LTIP and 2015 LTIP. WRIT will pay to Employee six months after her Separation from Service all compensation (if any) earned by Employee  under WRIT’s Long-Term Incentive Plan dated January 1, 2014 (the “LTIP”) during the 2014 and 2015 performance periods accruing up to the Resignation Date as if Employee had retired on the Resignation Date pursuant to the provisions dealing with retirement in Section 4.5 (in the case of clauses (i) or (ii) below) or Section 4.4 (in the cases of clause (iii) or (iv) below) of the LTIP. Pursuant to such provisions, Employee shall receive:

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(i) the regular 2014 award calculated based on the actual levels of achievement of the performance goals as of the Resignation Date, but the award shall be prorated in the proportion that the number of days elapsed from the beginning of the performance period through the date Employee ceases to be an employee of WRIT bears to the total number of days in the performance period;

(ii) the regular 2015 award calculated based on the actual levels of achievement of the performance goals as of the Resignation Date, but the award shall be prorated in the proportion that the number of days elapsed from the beginning of the performance period through the date Employee ceases to be an employee of WRIT bears to the total number of days in the performance period;  

(iii) the one-time transition 2014 award for the performance period ending December 31, 2014 pursuant to Section 5.12(a)(i) of the LTIP calculated based on the actual levels of achievement of the performance goals as of the end of the one-year performance period (i.e., December 31, 2014); and 

(iv) the one-time transition 2014 award for the performance period ending December 31, 2015 pursuant to Section 5.12(a)(ii) of the LTIP calculated based on the actual levels of achievement of the performance goals as of the end of the two-year performance period (i.e., December 31, 2015).

 Any restricted shares issued to the Participant with respect to the foregoing performance periods shall be fully vested.          

(g)  SERP Vesting.  Employee is already conditionally vested in her account under WRIT’s Supplemental Executive Retirement Plan (the “SERP”). Employee’s SERP account will be paid in a lump sum, subject to compliance with the 24 month noncompete in the SERP, 90 days after 24 months following the Resignation Date pursuant to Section 6.1 of the SERP. 

(h)  Deferred Compensation Plan.  Employee will vest in a pro rata amount of the unvested restricted stock units allocated to her matching contribution account under WRIT’s Deferred Compensation Plan for Officers (the “DCP”) as if Employee had retired pursuant to Section 4.3.2 of the DCP. The proration will be in the proportion that the number of months Employee worked after the allocation of restricted stock units through December 31, 2015 bears to 36, pursuant to the provisions of Section 4.3.2 of the DCP. Payment will be made when required by the DCP.  

All amounts payable under this Agreement assume that Employee continues to be employed by WRIT through the Resignation Date. In the event that Employee’s employment is terminated for any reason (other than by WRIT without Cause (as defined in the LTIP)) before the Resignation Date, Employee shall be entitled only to the benefits provided under the terms of the applicable plans. Nothing in Sections 2(b) to 2(h) shall be construed to modify or reduce the benefits to which Employee would otherwise be entitled under the plan documents setting forth the terms of the benefit programs referenced therein as would apply if Employee had qualified to 

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retire and  in fact retired on the Resignation Date. In the event of any conflict in the description of the benefits contained in Section 2(b) to 2(h) and the plan documents, the terms of the plan documents will control.

It is understood and agreed that in accepting the benefits set forth in clauses (a) through (h) above, Employee will forfeit any rights she may have to any other form of compensation from WRIT, including without limitation any compensation under WRIT’s Executive Officer Severance  Pay Plan, except as provided otherwise in Sections 2 and 3.  All shares received by Employee shall become unrestricted as set forth above and Employee shall thereafter be free to sell or transfer. All amounts payable as described in this Section 2 shall be subject to applicable federal and state tax and payroll withholding requirements, which in the case of amounts issued in common shares of WRIT may be satisfied by WRIT’s deduction of shares with a fair market value equal to the withholding required.

3.  Benefits:  If applicable, Employee (and if applicable, Employee’s spouse and dependents) will continue to participate in WRIT’s group health plan through the Resignation Date in accordance with its terms and conditions. Thereafter, Employee (and if applicable, Employee’s spouse and dependents) will be eligible to continue participation in WRIT’s group health plan at her own expense in accordance with and to the extent required by the federal COBRA law.  Except as expressly provided otherwise in this Agreement, Employee's entitlement to, participation in, and accrual of, all other salary, compensation or benefits from WRIT shall cease as of the Resignation Date, except that Employee shall have such rights in such benefits as are required by law and plan documents, including without limitation, Employee’s vested benefits in WRIT’s 401(k) plan, in accordance with and to the extent permitted by plan documents.

4.  References: Employee will direct all requests for employment references from WRIT to WRIT’s Senior Vice President & General Counsel or WRIT’s Director of Human Resources, Compensation & Benefits. If WRIT receives a request for reference concerning Employee which is directed to said latter person, WRIT will follow its normal policy of confirming dates of employment, position, duties and salary. 

5.  [Intentionally Omitted.]

6.  Mutual Releases:

A.  Employee’s Release:  In consideration for the benefits described herein, and for other good and valuable consideration, which are of greater value than Employee would normally be entitled upon the Resignation Date, Employee, on behalf of herself, her heirs, executors, administrators, attorneys, agents, representatives and assigns, hereby forever releases WRIT and its Affiliates, and its and their officers, directors, trustees, owners, shareholders, employees, insurers, benefit plans, agents, attorneys and representatives, and each of their predecessors, successors and assigns, from any and all claims, demands, suits, actions, damages, losses, expenses, charges or causes of action of any nature whatsoever, whether known or unknown, relating in any way to any act, omission, event, relationship, conduct, policy or 

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practice prior to the Employee’s execution of this Agreement, including without limitation her employment with WRIT and the termination thereof  (“Claims”). This release includes without limitation Claims for discrimination, harassment, retaliation or any other violation under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Maryland Human Rights Act, the Montgomery County Human Rights Act, and any other Claims under all other federal, state or local laws; Claims for breach of contract; Claims for wrongful discharge; Claims for emotional distress, defamation, fraud, misrepresentation or any other personal injury; Claims for unpaid compensation; Claims relating to benefits; Claims for attorneys' fees and costs, Claims for reinstatement or employment; and all other Claims under any federal, state or local law or cause of action.  Employee represents that she has not filed any such Claims, and she further agrees not to assert or file any such Claims released by this Agreement in the future, except that Employee is not prohibited from filing a charge with the Equal Opportunity Claims Commission but expressly waives her right to personal recovery as a result of such charge.  It is understood and agreed that this Release does not apply to claims for breach of this Agreement or Claims that cannot be released by law. 

B.  WRIT’s Release:  In consideration for the benefits described herein, and for other good and valuable consideration, WRIT and its Affiliates hereby forever release Employee, her  heirs, executors, administrators, agents, representatives and assigns, from any and all claims, demands, suits, actions, damages, losses, expenses, charges or causes of action of any nature whatsoever, whether known or unknown, relating in any way to any act, omission, event, relationship, conduct, policy or practice prior to the date Employee signs this Agreement (“WRIT’s Claims”).  This release includes without limitation WRIT’s Claims for breach of any contract or duty; WRIT’s Claims for emotional distress, defamation, fraud, misrepresentation or any other personal injury; WRIT’s Claims for overpaid compensation; WRIT’s Claims relating to benefits; WRIT’s Claims for attorneys' fees and costs; and all other WRIT’s Claims under any federal, state or local law or cause of action.  WRIT represents that it has not filed any such WRIT’s Claims, and it further agrees not to assert or file any such WRIT’s Claims in the future.  It is understood and agreed that this Release does not apply to claims for breach of this Agreement, WRIT’s Claims that cannot be released by law, or WRIT’s Claims for fraud, embezzlement, intentional misconduct or any other malfeasance or any WRIT’s Claims as to which indemnification of officers is not permitted pursuant to WRIT’s written documents governing indemnification of officers.

7.  Reinstatement:  Employee waives all claims for reinstatement or employment with WRIT and its Affiliates, and its and their successors and assigns, and she agrees not to seek such reinstatement or employment in the future unless the parties agree otherwise in writing.

8.  Confidentiality:  Except as necessary to enforce or effectuate this Agreement or as required by law or otherwise to satisfy SEC filing or disclosure requirements (it being understood that WRIT intends to file this Agreement and a summary of this Agreement with the SEC), or to the extent WRIT in good faith deems necessary in communications with analysts and institutional investors, the parties agree to keep this Agreement, the existence of this Agreement, and the terms of this Agreement strictly confidential.  Subject to the foregoing, Employee shall not disclose the same to any third party except as necessary to her attorneys, accountants and 

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immediate family members (and only on the condition that they maintain such confidentiality and Employee guarantees such confidentiality).  Also subject to the foregoing, WRIT shall not disclose the same to any third party except its board of trustees, officers, attorneys, accountants and employees responsible for effectuating the Agreement.  Notwithstanding the foregoing, if either party is asked about the reasons for Employee’s resignation, they may state in substance that Employee resigned to effectuate her retirement or words substantially to that effect. 

9.  Nondisparagement and Nonassistance:  Employee agrees not to disparage, or provide any disparaging information relating to, WRIT or any of its Affiliates or its or their past, present or future management, officers, trustees or employees to any person or entity who is not a party to this Agreement, and she agrees not to provide any form of assistance to, or to cooperate with, any person or entity asserting or intending to assert any claim or legal proceeding against WRIT or any of its Affiliates except as may be required by law or legal process.  WRIT shall instruct its Human Resources Department and its Officers not to disparage, or provide any disparaging information relating to, Employee to any person or entity who is not a party to this Agreement, and it agrees not to provide any form of assistance to, or to cooperate with, any person or entity asserting or intending to assert any claim or legal proceeding against Employee, except as may be required by law or legal process or as to any Claims that WRIT may have (if any) which it has not released pursuant to Section 6(B).

10.  Cooperation: Employee agrees to reasonably cooperate with WRIT upon request by answering questions and providing information about matters of which she has personal knowledge.  In the event that WRIT becomes involved in any civil or criminal litigation, administrative proceeding or governmental investigation, Employee shall, upon request, provide reasonable cooperation and assistance to WRIT, including without limitation, furnishing relevant information, attending meetings and providing statements and testimony; it being understood that she shall not be obligated if such cooperation or assistance would be in violation of any agreements which Employee may hereafter enter into, or materially interfere with Employee’s employment, business or family engagements.  WRIT will pay to Employee an hourly rate of $150 for time which Employee spends in furtherance of such cooperation and reimburse Employee for all reasonable and necessary expenses she incurs in complying with this Section 10, provided said time and expenses are reasonable and necessary and approved by WRIT in advance.

11.  Nondisclosure, Nonsolicitation and Noncompetition: Employee shall not, except as required by law, use or disclose to any person or entity any Confidential Information.  For the purposes of this Section 11, “Confidential Information” means information Employee obtained through or as a consequence of her employment with WRIT relating to WRIT’s business or its tenants which is not in the public domain and includes, without limitation, trade secrets, tenant lists, lease rates, methods of operation, investment opportunities, business plans, leads, financial information, research and statistical data.  Information does not lose its protection as Confidential Information if it is disclosed in violation of an obligation not to disclose it.  From the date of execution of this Agreement through the Resignation Date and for a period of twelve (12) months thereafter, Employee shall not (a) directly or indirectly for herself or any other person or entity, whether as an employee, officer, director, consultant, agent, representative, 

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partner, owner, stockholder or in any other capacity, (i) solicit any person who then is or was at any time in the preceding six month period employed by WRIT as an employee or independent contractor,  to resign from WRIT or to accept employment as an employee or independent contractor with any other person or entity; or (ii) solicit any person or entity who then is or was at any time in the preceding six month period in a business relationship with WRIT to end or curtail such relationship or to engage in business of the type engaged in by WRIT with another person or entity, or (b) perform services as an employee, officer, director or independent contractor for any publicly traded real estate investment trust that has offices in the Washington, D.C. metropolitan area and that is engaged in retail, multifamily or office real estate business. Notwithstanding the foregoing sentence, WRIT may in its sole and absolute discretion by action in writing waive or permit exceptions to the provisions of clause (b). Employee agrees that these restrictions are reasonable and necessary for the protection of WRIT’s business.  Employee further agrees that in the event she breaches any provision in this Section 11, WRIT shall be entitled to injunctive relief in addition to such other relief as a court may deem proper.

12.  Miscellaneous: This Agreement represents the entire agreement of the parties, and supersedes all other agreements, discussions and understandings of the parties, concerning the subject matter.  All other express or implied agreements of the parties not expressly contained or incorporated by reference herein are terminated and of no further force or effect.  This Agreement may not be modified in any manner except in a written document signed by both parties.  Should any provision of this Agreement be held to be invalid or unenforceable by a court of competent jurisdiction, it shall be deemed severed from the Agreement, and the remaining provisions of the Agreement shall continue in full force and effect, provided that, should the court determine that any provision of Section 11 is unenforceable, the court shall modify such provision to make it valid to the maximum extent permitted by law.  In the event of any litigation to enforce this Agreement, the prevailing party shall be awarded his or its reasonable attorneys’ fees and costs.

13.     Consultation and Consideration: WRIT hereby advises Employee to consult with an attorney at her own expense prior to signing this Agreement.  Employee may take up to twenty-one (21) days from the date she is given this Agreement to consider it, but she may sign it sooner if she wishes.  If she signs the Agreement, she will have a period of seven (7) days to revoke her signature (the "Revocation Period").  Thus, this Agreement will not become effective or enforceable until the date that each party has signed the Agreement and the Revocation Period has expired without Employee exercising her right of revocation (the "Effective Date").  Any notice of revocation must be in writing and must be received by WRIT’s General Counsel  prior to the expiration of the Revocation Period.  If Employee signs this Agreement, she represents that he has had sufficient time to consider it, and that he enters into it knowingly and voluntarily with full understanding of its meaning and effect.  

14.  Governing Law:    This Agreement shall be construed exclusively in accordance with the laws of Washington D.C., without regard to the principles of conflicts of laws therein.

15.  Assignment: This Agreement shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns.  Employee may not assign any right or 

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obligation hereunder without WRIT’s prior written consent.  WRIT may assign its rights and obligations here under to any successor in interest.

16. Section 409A of the Code. To the extent that such requirements are applicable, this Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code (“Section 409A”) and shall be interpreted and administered in accordance with that intent.  If any provision of the Agreement would otherwise conflict with or frustrate this intent, that provision will be interpreted and deemed amended so as to avoid the conflict.  Employee will incur a “separation from service” within the meaning of Section 409A as of the Resignation Date. All amounts paid hereunder shall be paid pursuant to the provisions of the plan from which paid (except that Employee shall be treated as retiring under such plan), and in the event of any conflict between the provisions of such plan and this Agreement, the plan shall govern.   

17.  Counterparts: This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and together which shall constitute one and the same instrument.

18.  Nonadmissions:  By entering into this Agreement, neither party is admitting that it did anything wrong or improper or that it has any liability to the other party.
 
Employee has had an opportunity to carefully review and consider this Agreement with an attorney, and she has had sufficient time to consider it.  After such careful 
consideration, she knowingly and voluntarily enters into this Agreement with full understanding of its meaning and effect.

[REMAINDER OF PAGE BLANK]

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement.

	
									
	LAURA M. FRANKLIN
	 
	WASHINGTON REAL ESTATE
	 

	 
	 
	 
	 
	INVESTMENT TRUST
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	/s/ Laura M. Franklin
	 
	By:
	 
	/s/ Paul T. McDermott
	 

	Signature
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	Title:
	President and CEO
	 

	 
	 
	 
	 
	 
	 
	 
	 

	Date:
	02/18/15
	 
	Date:
	02/18/15
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

9Exhibit 10.5(a)

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated this 28th day of December, 2014 (the
“Agreement”), is entered into by and between HEALTH CARE REIT, INC., a Delaware
corporation, (the “Corporation”), and THOMAS J. DEROSA (the “Executive”) and is
effective April 13, 2014 (the “Effective Date”). 

WHEREAS, Executive
and the Company previously entered into an Employment Agreement, as amended
from time to time, dated April 13, 2014 (the “Employment Agreement”); and 

WHEREAS, the
Parties desire to clarify the provisions of Section 4(g) of the Employment
Agreement and to amend and restate the employment agreement on the terms and
conditions set forth herein. 

NOW THEREFORE,
in consideration of the mutual covenants herein contained, the parties,
intending to be legally bound, hereby agree as follows: 

1.
EMPLOYMENT   

The Corporation hereby agrees to employ the Executive
as the Corporation’s Chief Executive Officer, upon the terms and conditions
herein contained, and the Executive hereby agrees to accept such employment and
to serve as the Corporation’s Chief Executive Officer, and to perform the
duties and functions customarily performed by the Chief Executive Officer of a
publicly traded corporation. 

In such capacities, the Executive shall report to the
Corporation’s Board of Directors (the “Board”), and shall have the powers and
responsibilities set forth in the Corporation’s By-Laws as well as such
additional powers and responsibilities consistent with his position as the
Board may assign to him. 

Throughout the Term (defined below) of this Agreement,
the Executive shall devote his best efforts and all of his business time and
services to the business and affairs of the Corporation. 

2.
TERM OF AGREEMENT  

The term of employment under this Agreement is three
years from the Effective Date and shall expire on April 13, 2017, unless
earlier terminated under one of the circumstances set forth in Sections 5, 6 or
7. The length of employment under this Agreement is referred to herein as the
“Term.” 

The Corporation shall be entitled to terminate this
Agreement immediately for any reason, subject to the continuing obligations of
the Corporation under this Agreement. 

3.
BASE COMPENSATION AND BONUS  

(a) The Executive shall receive annual base
compensation during the Term of this Agreement of not less than $825,000 in
cash (“Base Compensation”). Such amounts shall be payable in substantially
equal semi-monthly installments. Subject to the terms of this Agreement, during
the Term, the Compensation Committee of the Board (the “Compensation
Committee”) shall consult with the Executive and review the Executive’s Base
Compensation at annual intervals, and may adjust the Executive’s annual Base
Compensation from time to time. 

(b) The Executive shall also be eligible to receive an
annual incentive cash bonus with target bonus of 150% of Base Compensation and maximum
bonus of 300% of Base Compensation, prorated from the Effective Date, with the
actual amount of such bonus to be determined by the Compensation Committee,
using such performance measures as the Compensation Committee deems to be
appropriate. Such bonus, if any, shall be paid to the Executive no later than
sixty (60) days after the end of the year to which the bonus relates. 

4.
ADDITIONAL COMPENSATION AND BENEFITS  

The Executive shall receive the following additional
compensation and welfare and fringe benefits during the term:

 

(a) Stock Options and
Other Long-Term Incentives. During the Term of the Agreement, any stock
options, restricted stock or other awards granted under the 2005 Long-Term
Incentive Plan, or any other equity compensation plan adopted by the
Corporation, shall be at the discretion of the Compensation Committee. 
Notwithstanding the foregoing, the Executive will be eligible to receive
long-term incentive equity grants with an annual target value of $3,300,000,
adjusted for the Effective Date, subject to the terms and conditions as
determined by the Compensation Committee.

In addition, within an administratively reasonable
period of time following the Effective Date, the Corporation shall grant
restricted stock units to Executive with a value of $1 million (rounded to the
nearest whole share) (the “Initial RSUs”).  The Initial RSUs shall be subject
to performance criteria as determined by the Board or Compensation Committee
(the “Initial Performance Criteria”), and shall also be subject to a
requirement of continued employment, which requirements shall be satisfied in
substantially equal installments on each of the first, second, and third
anniversaries of the Effective Date hereof (as modified by Sections 5, 6 or 7
below).  The Initial Performance Criteria shall be determined by the Board or
the Compensation Committee in its sole discretion after consultation with the
Executive in the first ninety (90) days after the Effective Date.  Each vested
portion of the Initial RSUs shall be further deferred until after the Executive
is no longer employed with the Corporation, subject to terms and conditions to
conform with applicable law, including but not limited to Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”). 

(b) Health Insurance. During the Term of this
Agreement, the Corporation shall provide the Executive and his dependents with
health insurance coverage no less favorable than that from time to time made
available to other key employees. 

(c) Paid Time Off. During the Term of this
Agreement, the Executive shall be entitled to paid time off (“PTO”) (based on
the number of years of service) in accordance with the Corporation’s PTO
policy, as it may be amended from time to time.

(d) Business Expenses. During the Term of this
Agreement, the Corporation shall reimburse the Executive for all reasonable
expenses he incurs in promoting the Corporation’s business, including expenses
for travel and similar items, upon presentation by the Executive from time to
time of an itemized account of such expenditures in accordance with the
Corporation’s established policies and applicable law.  Following Executive’s
termination of employment, any expense reimbursement requests must be submitted
no later than sixty (60) days following such termination. 

(e) Automobile Allowance.  During the Term, the
Corporation will provide the Executive with a monthly allowance to cover
expenses incurred with the Executive’s lease of an automobile.

(f) Relocation Expenses.  The Corporation shall
provide Executive with a relocation and transition allowance in the amount of
$100,000 to cover expenses incurred with Executive’s move to the greater
Toledo, Ohio area, including but not limited to (i) moving himself, family
members and personal property, (ii) travel to his current home prior to any
relocation of family members, (iii) housing in the greater Toledo, Ohio area
and (iv) other related expenses.   

(g) Other Benefits.  In addition to the
benefits provided pursuant to the preceding paragraphs of this Section 4, the
Executive shall be eligible to participate in such other executive compensation
and retirement plans of the Corporation as are applicable generally to other
executive officers, and in such welfare plans, programs, practices and policies
of the Corporation as are generally applicable to other executive officers,
unless such participation would duplicate, directly or indirectly, benefits
already accorded to the Executive.  To the extent that the Corporation no
longer maintains the group health plan in which Executive is participating on
May 1, 2014 and Executive elects not to participate in any other group health
plan sponsored or maintained by the Company, he will receive a cash payment in
lieu of such benefits in an amount equal to the cost that the Company would
otherwise have incurred to provide such benefits to the Executive, but in any
event not to exceed $2000 per month.

5. PAYMENTS UPON
TERMINATION  

(a) Termination without Cause or Termination by
Executive for Good Reason (as defined below). If the Executive’s employment
is terminated by the Corporation without Cause (but not including due to death
or disability) or terminated by the Executive for Good Reason during the Term
of this Agreement, the Executive shall be entitled to the following: 

(i) Base Compensation accrued through the date of
termination, based on the number of days in such year that had elapsed as of
the termination date; 

(ii) any accrued but unpaid PTO through the date of
termination; 

(iii) any bonuses earned but unpaid with respect to
fiscal years or other completed periods preceding the termination date; 

(iv) any nonforfeitable benefits payable to the
Executive under the terms of any deferred compensation, incentive or other
benefit plans maintained by the Corporation, payable in accordance with the
terms of the applicable plan; 

(v) any expenses owed to the Executive under Sections
4(d), 4(e) or 4(f);

(vi) any pro-rated portion of the annual bonus that
the Executive would have earned for the year in which the termination occurs
(if he had remained employed for the entire year), based on the number of days
in such year that had elapsed as of the termination date, payable at the time
that the Corporation pays bonuses to its executive officers for such year; 

(vii) all stock options,
restricted stock or other equity awards with time-based vesting granted to the
Executive under this Agreement shall become fully vested and earned and, in the
case of stock options, exercisable in full and all stock options, restricted stock
or other equity awards with performance-based vesting granted to the Executive
under this Agreement shall become vested based upon a determination of actual
level of achievement of performance goals by the Compensation Committee of the
Board as of the end of the quarter immediately preceding the Executive’s
termination or as otherwise expressly provided in the applicable award
agreement; 

(viii) continued coverage under any group health plan
maintained by the Corporation in which the Executive participated at the time
of his termination for the period during which the Executive elects to receive
continuation coverage under Section 4980B of the Code at an after-tax cost
to the Executive comparable to the cost that the Executive would have incurred
for the same coverage had he remained employed during such period; and 

(ix) a series of semi-monthly severance payments for
twenty-four (24) months (the “Severance Period”), each in an amount equal
to one-twenty fourth (1/24th) of the sum of (A) the Executive’s Base
Compensation, as in effect on the date of termination, and (B) the
Executive’s target annual cash bonus opportunity at the time of termination, to
be paid in accordance with the Corporation’s normal payroll practices.

The payments set forth in subsections (vi), (vii),
(viii), and (ix) are subject to (a) a waiver and general release of claims in
favor of the Corporation, in a form and manner satisfactory to the Corporation,
that is executed by the Executive and which becomes effective within sixty (60)
days following the date of such termination, and (b) the Executive’s compliance
with the restrictive covenants set forth in Sections 9 and 10 below during the
Severance Period (the “Severance Requirement”).  Upon any violation of the
Severance Requirement during the Severance Period, all post-employment
compensation set forth in subsections (vi), (vii), (viii), and (ix) above shall
immediately stop and the Executive shall be obligated to return to the
Corporation any post-employment compensation previously paid or otherwise
provided to the Executive.  All payments to be made pursuant to subsection
(vii) (excluding stock options) shall be made to the Executive on the first
business day following the date that is sixty (60) days following the date
of such termination (except as otherwise expressly provided in the applicable
award agreement). The payments set forth in subsection (ix) shall commence on
the 60th day following the day of such termination.  

All payments to be made pursuant to subsections (i),
(ii), (iii), and (v) shall be made to the Executive within sixty (60) days
following the date of such termination and within any shorter time period
required by law.   

For purposes of this Agreement, “Cause” shall mean:
(1) any action by the Executive involving willful disloyalty to the
Corporation, such as embezzlement, fraud, misappropriation of corporate assets
or a breach of the covenants set forth in Section 9 or 10 herein;
(2) the Executive being convicted of a felony; (3) the Executive
being convicted of any crime or offense that is not a felony but was
(x) committed in connection with the performance of his duties hereunder
or (y) involved moral turpitude; or (4) the intentional and willful
failure by the Executive to substantially perform his duties hereunder as
directed by the Board (other than any such failure resulting from the
Executive’s incapacity due to physical or mental disability) after a demand for
substantial performance is made by the Board. A termination of employment shall
not be deemed for Cause unless and until (x) there shall have been
delivered to the Executive a notice describing in reasonable detail the
particulars giving rise to a termination for Cause, and (y) in the case of
termination pursuant to clause (4) above, if no cure has occurred by the
fifteenth (15th) day after notice was given. 

For purposes of this Agreement, “Good Reason” shall
mean: (1) the assignment of Executive to a position other than the Chief
Executive Officer of the Corporation during the Term; (2) the assignment
of duties materially inconsistent with such position if such change in
assignment constitutes (x) a material diminution in the Executive’s total
compensation opportunity, authority, duties or responsibilities; (y) a
change in the reporting structure such that the Executive is directed to report
to anyone other than the Corporation’s Board; or (3) a material breach by
the Corporation of this Agreement; provided, however, Executive must not have
consented to any such act or omission that could give rise to a claim for “Good
Reason”, the Executive must have notified the Corporation in writing within the
first thirty (30) days following the occurrence of any of the foregoing
events and the Corporation must have failed to substantially cure such breach
within thirty (30) days following its receipt of such notice from the
Executive; and provided further, the Executive must have resigned under this
paragraph within ninety (90) days following the occurrence of the event.
Notwithstanding the foregoing, any transfer of responsibilities in connection
with succession planning and leadership transition shall in no event constitute
Good Reason for purposes of this Agreement.  

(b) Disability. The Corporation shall be
entitled to terminate the Executive’s employment if the Board determines that
the Executive has been unable to substantially perform his duties for at least
ninety (90) days because of a medically diagnosable physical or mental
condition, and has received a written opinion from a physician acceptable to
the Board that such condition prevents the Executive from resuming full
performance of his duties and is likely to continue for an indefinite period.
Upon such termination, the Executive shall be entitled to the following: 

(i) Base Compensation accrued through the date of
termination, based on the number of days in such year that had elapsed as of
the termination date; 

(ii) any accrued but unpaid PTO through the date of
termination; 

(iii) any bonuses earned
but unpaid with respect to fiscal years or other completed periods preceding
the termination date; 

(iv) any nonforfeitable benefits payable to the
Executive under the terms of any deferred compensation, incentive or other
benefit plans maintained by the Corporation, payable in accordance with the
terms of the applicable plan; 

(v) any expenses owed to the Executive under Sections
4(d), 4(e) or 4(f); and

(vi) any pro-rated portion of the annual bonus that
the Executive would have earned for the year in which the termination occurs
(if he had remained employed for the entire year), based on the number of days
in such year that had elapsed as of the termination date, payable at the time
that the Corporation pays bonuses to its executive officers for such year; and

(vii) all stock options, restricted stock or other
equity awards with time-based vesting granted to the Executive under this
Agreement shall become fully vested and earned and payable and, in the case of
stock options, exercisable in full and all stock options, restricted stock or
other equity awards with performance-based vesting granted to the Executive
under this Agreement shall become vested to the extent provided in the
applicable award agreement.

All cash payments (other than pro-rated bonus) listed
in subsections (i), (ii), (iii) and(v) shall be paid to the Executive within
sixty (60) days following the date of such termination and within any
shorter time period required by law.  All payments to be made pursuant to
subsection  (vii) (excluding stock options) shall be made to the Executive on
the first business day following the date that is sixty (60) days following the
date of such termination (except as otherwise expressly provided in the
applicable award agreement).

(c) Termination for Cause. If the Executive’s
employment is terminated by the Corporation for Cause, the Executive shall be
entitled to the following: 

(i) Base Compensation accrued through the date of
termination, based on the number of days in such year that had elapsed as of
the termination date; 

(ii) any accrued but unpaid PTO through the date of
termination; 

(iii) any bonuses earned but unpaid with respect to
fiscal years or other completed periods preceding the termination date;

(iv) any nonforfeitable benefits payable to the
Executive under the terms of any deferred compensation, incentive or other
benefit plans maintained by the Corporation, payable in accordance with the
terms of the applicable plan; and

(v) any expenses owed to the Executive under Section
4(d).

All cash payments listed in subsections (i), (ii),
(iii) and (v) required to be paid pursuant to this Section shall be paid to the
Executive within sixty (60) days following the date of such termination
and within any shorter time period required by law. 

(d) Voluntary Termination or Resignation by the
Executive. If the Executive voluntarily terminates (but not by reason of
expiration of the Term) or resigns his employment other than for Good Reason,
the Executive shall be entitled to the following: 

(i) Base Compensation accrued through the date of
termination, based on the number of days in such year that had elapsed as of
the termination date; 

(ii) any accrued but unpaid PTO through the date of
termination; 

(iii) any bonuses earned but unpaid with respect to
fiscal years or other completed periods preceding the termination date; 

(iv) any nonforfeitable benefits payable to the
Executive under the terms of any deferred compensation, incentive or other
benefit plans maintained by the Corporation, payable in accordance with the
terms of the applicable plan; and

(v) any expenses owed to the Executive under Section
4(d). 

All cash payments required to be paid pursuant to this
Section shall be made to the Executive within sixty (60) days following
the date of such termination and within any shorter time period required by
law. 

(e) Termination upon Expiration of the Term. If
the Executive’s employment terminates as a result of the expiration of the Term
of this Agreement, the Executive shall be entitled to the following: 

(i) Base Compensation accrued through the date of
termination, based on the number of days in such year that had elapsed as of
the termination date; 

(ii) any accrued but unpaid PTO through the date of
termination; 

(iii) any bonuses earned but unpaid with respect to
fiscal years or other completed periods preceding the termination date;

(iv) any nonforfeitable
benefits payable to the Executive under the terms of any deferred compensation,
incentive or other benefit plans maintained by the Corporation, payable in
accordance with the terms of the applicable plan; and

(v) any expenses owed to the Executive under Sections
4(d) 4(e), or 4(f).

All cash payments listed in subsections (i), (ii),
(iii) and (v) required to be paid pursuant to this Section shall be made to the
Executive within sixty (60) days following the date of such termination
and within any shorter time period required by law. 

6. CHANGE IN CORPORATE CONTROL  

(a) If at any time upon, or during the period of
twenty-four (24) consecutive months following, the occurrence of a Change
in Corporate Control (as defined below), and during the Term of this Agreement,
the Executive is involuntarily terminated (other than for Cause), or resigns
his employment for Good Reason, the Executive shall be entitled to the
following: 

(i) Base Compensation accrued through the date of
termination, based on the number of days in such year that had elapsed as of
the termination date; 

(ii) any accrued but unpaid PTO pay through the date
of termination; 

(iii) any bonuses earned but unpaid with respect to
fiscal years or other completed periods preceding the termination date; 

(iv) any nonforfeitable benefits payable to the
Executive under the terms of any deferred compensation, incentive or other
benefit plans maintained by the Corporation, payable in accordance with the
terms of the applicable plan; 

(v) any expenses owed to the Executive under Sections
4(d), 4(e) or 4(f);

(vi) the pro-rated portion of the target annual bonus
that the Executive would have earned for the year in which the termination
occurs (if he had remained employed for the entire year), based on the number
of days in such year that had elapsed as of the termination date; 

(vii) all stock options, restricted stock or other
equity awards with time-based vesting granted to the Executive under this
Agreement shall become fully vested and earned and, in the case of stock options,
exercisable in full and all stock options, restricted stock or other equity
awards with performance-based vesting granted to the Executive under this
Agreement shall become vested based upon a determination of actual level of
achievement of performance goals by the Compensation Committee of the Board as
of immediately prior to the occurrence of the Change of Corporate Control or as
otherwise expressly provided in the applicable award agreements; 

(viii) continued coverage under any group health plan
maintained by the Corporation in which the Executive participated at the time
of his termination for the period during which the Executive elects to receive
continuation coverage under Section 4980B of the Code at an after-tax cost
to the Executive comparable to the cost that the Executive would have incurred
for the same coverage had he remained employed during such period; and

(ix) a lump sum severance payment equal to the present
value of a series of monthly severance payments for thirty-six
(36) months, each in an amount equal to one-twelfth (1/12th) of the
sum of (A) the Executive’s Base Compensation, as in effect at the time of
the Change in Corporate Control, and (B) the average of annual bonuses
paid to the Executive for the last three (3) or, if applicable, fewer
fiscal years of the Corporation ending prior to the Change in Corporate
Control. Such present value shall be calculated using a discount rate equal to
the interest rate on 90-day Treasury bills, as reported in The Wall Street
Journal (or similar publication) on the date of the Change in Corporate
Control.  For purposes of this subsection (ix), the amount of any annual bonus
paid for a portion of a fiscal year shall be annualized and if no such bonuses
have been paid, then the Executive’s target annual bonus at the time of
termination shall be used.

The payments set forth in subsections (vi), (vii),
(viii), and (ix) are subject to a waiver and general release of claims in favor
of the Corporation, in a form and manner satisfactory to the Corporation, that
is executed by the Executive and which becomes effective within sixty (60) days
following the date of such termination.  All payments to be made pursuant to
subsection  (vii) (excluding stock options) shall be made to the Executive on
the first business day following the date that is sixty (60) days following the
date of such termination (except as otherwise expressly provided in the
applicable award agreement). All cash payments required to be paid pursuant to
subsections (i), (ii), (iii), (v), (vi) and (ix) of this Section shall be made
within sixty (60) days following the date of such termination and within any
shorter time period required by law.  Notwithstanding the foregoing,  the
severance payment under this Section shall be payable on a monthly basis
instead of a lump sum if the “Change in Corporate Control” does not constitute
a “change in control event” within the meaning of Treasury Regulation Section
1.409A-3(i)(g) and shall in any event comply with the provisions of Section 8. 

(b) For purposes of this Agreement, a “Change in
Corporate Control” shall mean: 

(i) The acquisition in one or more transactions of
more than twenty percent (20%) of the Corporation’s outstanding common
stock (or the equivalent in voting power of any class or classes of securities
of the Corporation entitled to vote in 

elections of
directors) by any corporation, or other person or group (within the meaning of
Section 14(d)(3) of the Securities Exchange Act of 1934, as amended),
except for acquisitions of the Corporation’s outstanding common stock by
(A) the Corporation or an affiliate or subsidiary of the Corporation,
(B) an employee benefit plan (or any trust forming a part thereof) of the
Corporation, or (C) an underwriter temporarily holding securities of the
Corporation pursuant to an offering of such securities; 

(ii) The sale of all or substantially all of the
assets of the Corporation; 

(iii) The consummation of any merger or consolidation
or similar business combination or reorganization involving the Corporation
(“Corporate Transaction”), unless (A) the stockholders of the Corporation,
immediately before such Corporate Transaction, own, directly or indirectly,
immediately following such Corporate Transaction, more than fifty percent
(50%) of the then outstanding shares of common stock (or the equivalent in
voting power of any class or classes of securities of the corporation entitled
to vote in elections of directors) of the corporation resulting from such
Corporate Transaction (the “Surviving Company”) in substantially the same
proportion as their ownership of the Corporation’s outstanding common stock (or
the equivalent in voting power of any class or classes of securities of the
Corporation entitled to vote in elections of directors) immediately before such
Corporate Transaction, and (B) the persons who were Continuing Directors
(as defined below) immediately prior to the execution of the agreement
providing for such Corporate Transaction constitute more than fifty percent
(50%) of the members of the Board of Directors of the Surviving Company;
or 

(iv) During any twenty-four (24) month period,
individuals who, as of the beginning of such period, constitute the Board (the
“Continuing Directors”) cease for any reason to constitute at least a majority
of the Board. For this purpose, any person who is nominated for election as a
member of the Board after April 14, 2014 shall also be considered a “Continuing
Director” if, and only if, his or her nomination for election to the Board is
approved or recommended by a majority of the members of the Board (or of the
Nominating Committee of the Board) and at least five (5) members of the
Board are themselves Continuing Directors at the time of such nomination;
provided, however, that a director elected to the Board as part of a threatened
or actual proxy contest, including by reason of an agreement intended to avoid
or settle any threatened or actual proxy contest, shall not be considered a
“Continuing Director” even if his or her nomination for election to the Board
is approved or recommended by a majority of the members of the Board (or of the
Nominating Committee of the Board); or

(v) The
liquidation or dissolution of the Corporation. 

(c) Notwithstanding anything else in this Agreement to
the contrary, in the event that it shall be determined that any payments or
distributions by the Corporation 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 (together, the “Payment”) would constitute an
“excess parachute payment” within the meaning of Section 280G of the Code, then
the Payments shall be payable either in (i) full or (ii) as to such lesser
amount which would result in no portion of such Payments being subject to the
Excise Tax and the Executive shall receive the greater, on an after-tax basis,
of (i) or (ii) above, as determined by an independent accountant or tax advisor
(“Independent Tax Advisor”) selected by the Corporation. In the event that the
payments and/or benefits are to be reduced pursuant to this Section 6(c), such
payments and benefits shall be reduced as determined by the Independent Tax
Advisor such that the reduction of compensation to be provided to or for the
benefit of the Executive as a result of this Section 6(c) is minimized and to
effectuate that, Payments shall be reduced (i) by first reducing or eliminating
the portion of such Payments which is not payable in cash (other than that
portion of such payments that is subject to clause (iii) below), (ii) then by
reducing or eliminating cash Payments (other than that portion of such Payments
subject to clause (iii) below) and (iii) then by reducing or eliminating the
portion of such Payments (whether or not payable in cash) to which Treas. Reg.
§1.280G-1 Q/A 24(c) (or any successor provision thereto) applies, in each case
in reverse order beginning with Payments which are to be paid the farthest in
time from the date of the transaction constituting a change in ownership of the
Corporation within the meaning of Section 280G of the Code. Any reductions made
pursuant to this Section 6(c) shall be made in a manner consistent with the
requirements of Section 409A and where two economically equivalent amounts are
subject to reduction but payable at different times, such amounts shall be
reduced on a pro rata basis but not below zero.

(d) If any dispute arises between the Corporation (or
any successor) and the Executive regarding Executive’s right to payments under
this Section, the Executive shall be entitled to recover his attorneys fees and
costs incurred in connection with such dispute if the Executive is determined
to be the prevailing party. The following additional terms and conditions shall
apply to the reimbursement of any attorneys fees and costs: (i) the
attorneys fees and costs must be incurred by the Executive within five years
following the date of the Executive’s termination or resignation; (ii) the
attorneys fees and costs shall be paid by the Corporation by the end of the taxable
year following the year in which the attorneys fees and costs were incurred;
(iii) the amount of any attorneys fees and costs paid by the Corporation
in one taxable year shall not affect the amount of any attorneys fees and costs
to be paid by the Corporation in any other taxable year; and (iv) the
Executive’s right to receive attorneys fees and costs may not be liquidated or
exchanged for any other benefit.

7. DEATH   

If the Executive dies during the Term of this
Agreement, the Corporation shall pay to the Executive’s estate the following: 

(i) Base Compensation
accrued through the date of death, based on the number of days in such year
that had elapsed as of the date of death; 

(ii) any accrued but unpaid PTO through the date of
death; 

(iii) any bonuses earned but unpaid with respect to
fiscal years or other completed periods preceding the date of death; 

(iv) any nonforfeitable benefits payable to the
Executive under the terms of any deferred compensation, incentive or other
benefit plans maintained by the Corporation, payable in accordance with the
terms of the applicable plan; 

(v) any expenses owed to the Executive under Sections
4(d), 4(e) or 4(f);

(vi) any pro-rated portion of the annual bonus that
the Executive would have earned for the year in which the death occurs (if he
had remained employed for the entire year), based on the number of days in such
year that had elapsed as of the date of death), payable at the time that the
Corporation pays bonuses to its executive officers for such year; and 

(vii) all stock options, restricted stock or other
equity awards with time-based vesting granted to the Executive under this
Agreement shall become fully vested and earned and, in the case of stock
options, exercisable in full and all stock options, restricted stock or other
equity awards with performance-based vesting granted to the Executive under
this Agreement shall become vested to the extent provided in the applicable
award agreement. 

All cash payments listed in subsections (i), (ii),
(iii) and (v) required to be paid pursuant to this Section shall be made to the
estate within sixty (60) days following the date of death and within any
shorter time period required by law. All payments to be made pursuant to
subsection  (vii) (excluding stock options) shall be made to the Executive on
the first business day following the date that is sixty (60) days following the
date of such termination (except as otherwise expressly provided in the
applicable award agreement).The pro-rated bonus shall be paid in accordance
with the provisions of Section 3(b) after the Compensation Committee has
approved bonuses payable for the year. 

8. WITHHOLDING AND SECTION 409A COMPLIANCE  

(a)                 The Corporation shall, to the
fullest extent not prohibited by law, have the right to withhold and deduct
from any payment hereunder any federal, state or local taxes of any kind
required by law to be withheld with respect to any such payment.  

(b) This Agreement is intended to comply with the
requirements of Section 409A of the Code, and shall be interpreted and
construed consistently with such intent. The payments to the Executive pursuant
to this Agreement are also intended to be exempt from Section 409A of the
Code to the maximum extent possible, under either the separation pay exemption
pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii), as short-term
deferrals pursuant to Treasury Regulation Section 1.409A-1(b)(4), or
otherwise. In the event the terms of this Agreement would subject the Executive
to additional income taxes, interest or penalties under Section 409A of
the Code (“409A Penalties”), the Corporation and the Executive shall cooperate
diligently to amend the terms of the Agreement to avoid such 409A Penalties, to
the extent possible. To the extent any amounts under this Agreement are payable
by reference to Executive’s “termination,” “termination of employment,” or
similar phrases, such term shall be deemed to refer to the Executive’s
“separation from service” (as defined in Treasury Regulation Section 1.409A-1(h)
(without regard to any permissible alternative definition thereunder) with the
Corporation and all entities treated as a single employer with the Corporation
under Sections 414(b) and (c) of the Code but substituting a 50% ownership
level for the 80% ownership level set forth therein). Notwithstanding any other
provision in this Agreement, including but not limited to Sections 5 and 6, if
the Executive is a “Specified Employee” (as defined Treasury Regulation
Section 1.409A-1(i) on December 31st of the prior calendar year), as
of the date of the Executive’s separation from service, then to the extent any
amount payable under this Agreement (i) constitutes the payment of
nonqualified deferred compensation, within the meaning of Section 409A of
the Code, (ii) is payable upon the Executive’s separation from service,
and (iii) under the terms of this Agreement would be payable prior to the
six-month anniversary of the Executive’s separation from service, such payment
shall be delayed and paid to the Executive, on the first day of the first
calendar month beginning at least six months following the date of termination,
or, if earlier, within ninety (90) days following the Executive’s death to
the Executive’s surviving spouse (or such other beneficiary as the Executive
may designate in writing). Any reimbursement or advancement payable to the
Executive pursuant to this Agreement shall be conditioned on the submission by
the Executive of all expense reports reasonably required by the Corporation
under any applicable expense reimbursement policy, and shall be paid to the
Executive within thirty (30) days following receipt of such expense
reports, but in no event later than the last day of the calendar year following
the calendar year in which the Executive incurred the reimbursable expense. Any
amount of expenses eligible for reimbursement, or in-kind benefit provided,
during a calendar year shall not affect the amount of expenses eligible for
reimbursement, or in-kind benefit to be provided, during any other calendar year.
The right to any reimbursement or in-kind benefit pursuant to this Agreement
shall not be subject to liquidation or exchange for any other benefit. 

9.
PROTECTION OF CONFIDENTIAL INFORMATION  

The Executive hereby agrees that, during his
employment with the Corporation and thereafter, he shall not, directly or
indirectly, disclose or make available to any person, firm, corporation,
association or other entity for any reason or purpose whatsoever, any
Confidential Information (defined below).  The Executive further agrees that,
upon the date of the Executive’s termination, all Confidential Information in
his possession that is in written or other tangible form shall be returned to
the Corporation and shall not be retained by the Executive or furnished to any
third party, in any form except as provided herein.  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 Corporation 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 Corporation,
in any form, including electronic media.  Confidential Information also
includes, but is not limited to the Corporation’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 or promise to the Corporation. 

The Executive recognizes that because his work for the
Corporation will bring him into contact with confidential and proprietary information
of the Corporation, the restrictions of this Section 9 are required for
the reasonable protection of the Corporation and its investments and for the
Corporation’s reliance on and confidence in the Executive. 

10.
COVENANT NOT TO COMPETE  

The Executive
hereby agrees that he will not, either during the Term or at all times until
one year from the time his employment ceases,  or, if later, during any period
in which he is receiving any severance or change in control payments under
Sections 5(a) or 6 (the “Restricted Period”), engage in any business activities
on behalf of any enterprise which competes with the Corporation in the business
of (i) ownership or operation of Health Care Facilities (defined below); (
ii) investment in or lending to health care related enterprises (including,
without limitation, owners or developers of Health Care Facilities);
(iii) management of Health Care Facilities; or (iv) provision of any
planning or development services for Health Care Facilities. “Health Care
Facilities” means any senior housing facilities or facilities used or intended
primarily for the delivery of health care services, including, without
limitation, any active adult communities, independent living facilities,
assisted living facilities, skilled nursing facilities, inpatient
rehabilitation facilities, ambulatory surgery centers, medical office
buildings, hospitals of any kind, or any similar types of facilities or
projects. The Executive will be deemed to be engaged in such competitive
business activities if he participates in such a business enterprise as an
employee, officer, director, consultant, agent, partner, proprietor, or other
participant; provided that the ownership of no more than two percent
(2%) of the stock of a publicly traded corporation engaged in a
competitive business shall not be deemed to be engaging in competitive business
activities. 

During
the Restricted Period, Executive will be prohibited, to the fullest extent
allowed by applicable law, from directly or indirectly, individually or on
behalf of any person or entity, encouraging, inducing, attempting to induce,
recruiting, attempting to recruit, soliciting or attempting to solicit or
participating in any way in hiring or retaining for employment, contractor or
consulting opportunities anyone who is employed at that time by the Corporation
or any subsidiary or affiliate. 

 

During
the Restricted Period, Executive will not make or authorize anyone else to make
on Executive’s behalf any disparaging or untruthful remarks or statements,
whether oral or written, about the Corporation, its operations or its products,
services, affiliates, officers, directors, employees, or agents, or issue any
communication that reflects adversely on or encourages any adverse action
against the Corporation.  Executive will not make any direct or indirect
written or oral statements to the press, television, radio or other media or
other external persons or entities concerning any matters pertaining to the
business and affairs of the Corporation, its affiliates or any of its officers
or directors. 

11.
INJUNCTIVE RELIEF  

The Executive acknowledges and agrees that it would be
difficult to fully compensate the Corporation for damages resulting from the
breach or threatened breach of the covenants set forth in Sections 9 and 10 of
this Agreement and accordingly agrees that the Corporation shall be entitled to
temporary and injunctive relief, including temporary restraining orders,
preliminary injunctions and permanent injunctions, without the need to post any
bond, to enforce such provisions in any action or proceeding instituted in the
United States District Court for the Northern District of Ohio or in any court
in the State of Ohio having subject matter jurisdiction. This provision with
respect to injunctive relief shall not, however, diminish the Corporation’s
right to claim and recover damages. 

It is expressly understood and agreed that although
the parties consider the restrictions contained in this Agreement to be
reasonable, if a court determines that the time or territory or any other
restriction contained in this Agreement is an unenforceable restriction on the
activities of the Executive, no such provision of this Agreement shall be
rendered void but shall be deemed amended to apply as to such maximum time and
territory and to such extent as such court may judicially determine or indicate
to be reasonable. 

12. NOTICES   

All notices or communications hereunder shall be in
writing and sent by overnight courier, certified mail, or registered mail (return
receipt requested), postage prepaid, addressed as follows (or to such other
address as such party may designate in writing from time to time): 

If to the Corporation: 

Health
Care REIT, Inc. 

4500
Dorr Street 

Toledo,
OH 43615 

	
  Attention:  

  	
  General
  Counsel

  

 

If to the Executive, at the address on file with the
Corporation’s Human Resources department. 

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

13.
SEPARABILITY   

If any provision of this Agreement shall be declared
to be invalid or unenforceable, in whole or in part, such invalidity or
unenforceability shall not affect the remaining provisions hereof which shall
remain in full force and effect. 

14.
ASSIGNMENT   

This Agreement shall be binding upon and inure to the
benefit of the heirs and representatives of the Executive and the assigns and
successors of the Corporation, but neither this Agreement nor any rights or
obligations hereunder shall be assignable or otherwise subject to hypothecation
by the Executive. 

15.
ENTIRE AGREEMENT  

This Agreement represents the entire agreement of the
parties and shall supersede any and all previous contracts, arrangements or
understandings between the Corporation and the Executive. The Agreement may be
amended at any time by mutual written agreement of the parties hereto. 

16.
GOVERNING LAW  

This Agreement shall be construed, interpreted, and
governed in accordance with the laws of the State of Ohio. 

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

 

	 	 	 	 
	
    

  	
  HEALTH CARE REIT, INC.

  
	 	 
	
    

  	
  By:

  	
    

  	
  
  /s/ Erin C. Ibele

  

  
	
    

  	 	
    

  	
  Erin C. Ibele, Executive Vice
  President, Head of Human

  Capital and Corporate Secretary

  
	 
	
    

  	
  EXECUTIVE: 

  
	 
	
    

  	

   /s/ Thomas J.
  DeRosa                                                                               
  

  

  
	
    

  	
  Thomas
  J. DeRosa

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}]]