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                                                                    EXHIBIT 10.3

                            BIOMED REALTY TRUST, INC.
                               BIOMED REALTY, L.P.
                            2004 INCENTIVE AWARD PLAN

                                   ARTICLE 1

                                    PURPOSE

         The purpose of the BioMed Realty Trust, Inc. and BioMed Realty, L.P.
2004 Incentive Award Plan (the "Plan") is to promote the success and enhance the
value of BioMed Realty Trust, Inc., a Maryland corporation (the "Company"), and
BioMed Realty, L.P., a Maryland limited partnership (the "Partnership"), by
linking the personal interests of the members of the Board, Employees, and
Consultants to those of Company stockholders and by providing such individuals
with an incentive for performance to generate returns to Company stockholders.
The Plan is further intended to provide flexibility to the Company and the
Partnership in their ability to motivate, attract, and retain the services of
members of the Board, Employees, and Consultants upon whose judgment, interest,
and special effort the successful conduct of the Company's and the Partnership's
operation is largely dependent.

                                   ARTICLE 2

                          DEFINITIONS AND CONSTRUCTION

         Wherever the following terms are used in the Plan they shall have the
meanings specified below, unless the context clearly indicates otherwise. The
singular pronoun shall include the plural where the context so indicates.

         2.1      "Administrator" means the Board or a committee of the Board as
described in Article 12.

         2.2      "Award" means an Option, a Restricted Stock award, a Stock
Appreciation Right award, a Dividend Equivalents award, a Stock Payment award, a
Restricted Stock Unit award, an Other Stock-Based Award, a Performance Bonus
Award, or a Performance-Based Award granted to a Participant pursuant to the
Plan.

         2.3      "Award Agreement" means any written agreement, contract, or
other instrument or document evidencing an Award.

         2.4      "Board" means the Board of Directors of the Company.

         2.5      "Change in Control" means and includes each of the following:

                  (a)      the acquisition, directly or indirectly, by any
"person" or "group" (as those terms are defined in Sections 3(a)(9), 13(d), and
14(d) of the Exchange Act and the rules thereunder) of "beneficial ownership"
(as determined pursuant to Rule 13d-3 under the Exchange Act) of securities
entitled to vote generally in the election of directors ("voting securities") of
the Company that represent 20% or more of the combined voting power of the
Company's then outstanding voting securities, other than

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                           (i)      an acquisition by a trustee or other
fiduciary holding securities under any employee benefit plan (or related trust)
sponsored or maintained by the Company or any person controlled by the Company
or by any employee benefit plan (or related trust) sponsored or maintained by
the Company or any person controlled by the Company, or

                           (ii)     an acquisition of voting securities by the
Company or a corporation owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of the
stock of the Company, or

                           (iii)    an acquisition of voting securities pursuant
to a transaction described in subsection (c) below that would not be a Change in
Control under subsection (c);

         Notwithstanding the foregoing, neither of the following events shall
constitute an "acquisition" by any person or group for purposes of this
subsection (a): (1) a change in the voting power of the Company's voting
securities based on the relative trading values of the Company's then
outstanding securities as determined pursuant to the Company's Articles of
Incorporation, or (2) an acquisition of the Company's securities by the Company
which causes the Company's voting securities beneficially owned by a person or
group to represent 20% or more of the combined voting power of the Company's
then outstanding voting securities;

                  (b)      individuals who, as of the Effective Date, constitute
the Board (the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a
director subsequent to the Effective Date whose appointment, election, or
nomination for election by the Company's stockholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a person other than the
Board;

                  (c)      the consummation by the Company (whether directly
involving the Company or indirectly involving the Company through one or more
intermediaries) of a merger, consolidation, reorganization, or business
combination, a sale or other disposition of all or substantially all of the
Company's assets, or the acquisition of assets or stock of another entity, in
each case, other than a transaction

                           (i)      which results in the Company's voting
securities outstanding immediately before the transaction continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the Company or the person that, as a result of the transaction,
controls, directly or indirectly, the Company or owns, directly or indirectly,
all or substantially all of the Company's assets or otherwise succeeds to the
business of the Company (the Company or such person, the "Successor Entity"))
directly or indirectly, at least 50% of the combined voting power of the
Successor Entity's outstanding voting securities immediately after the
transaction, and

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                           (ii)     after which more than 50% of the members of
the board of directors of the Successor Entity are members of the Incumbent
Board at the time of the Board's approval of the agreement providing for the
transaction or other action of the Board approving the transaction, and

                           (iii)    after which no person or group beneficially
owns voting securities representing 20% or more of the combined voting power of
the Successor Entity; provided, however, that no person or group shall be
treated for purposes of this paragraph (iii) as beneficially owning 20% or more
of combined voting power of the Successor Entity solely as a result of the
voting power held in the Company prior to the consummation of the transaction;
or

                  (d)      the Company's stockholders approve a liquidation or
dissolution of the Company.

         For purposes of subsection (a) above, the calculation of voting power
shall be made as if the date of the acquisition were a record date for a vote of
the Company's stockholders, and for purposes of subsection (c) above, the
calculation of voting power shall be made as if the date of the consummation of
the transaction were a record date for a vote of the Company's stockholders.

         The Administrator shall have full and final authority, which shall be
exercised in its discretion, to determine conclusively whether a Change in
Control of the Company has occurred pursuant to the above definition, and the
date of the occurrence of such Change in Control and any incidental matters
relating thereto.

         2.6      "Code" means the Internal Revenue Code of 1986, as amended
from time to time.

         2.7      "Committee" means the committee of the Board described in
Article 12.

         2.8      "Company Consultant" means any consultant or adviser if:

                  (a)      The consultant or adviser renders bona fide services
to the Company or any Company Subsidiary;

                  (b)      The services rendered by the consultant or adviser
are not in connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market for
the Company's securities; and

                  (c)      The consultant or adviser is a natural person who has
contracted directly with the Company or any Company Subsidiary to render such
services.

         2.9      "Company Employee" means any employee (as defined in
accordance with Section 3401(c) of the Code) of the Company or any entity which
is then a Company Subsidiary.

         2.10     "Company Subsidiary" means (i) any "subsidiary corporation" of
the Company as defined in Section 424(f) of the Code and any applicable
regulations promulgated thereunder, (ii) any other entity of which a majority of
the outstanding voting stock or voting power is beneficially owned directly or
indirectly by the Company, or (iii) any partnership or limited

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liability company of which 50% or more of the capital and profits interest is
owned, directly or indirectly, by the Company or by one or more Company
Subsidiaries or by the Company and one or more Company Subsidiaries; provided,
however, that "Company Subsidiary" shall not include the Partnership or any
Partnership Subsidiary.

         2.11     "Consultant" means any Company Consultant or any Partnership
Consultant.

         2.12     "Covered Employee" means an Employee who is, or is likely to
become, a "covered employee" within the meaning of Section 162(m)(3) of the
Code.

         2.13     "Disability" means a permanent and total disability within the
meaning of Section 22(e)(3) of the Code, as it may be amended from time to time.

         2.14     "Dividend Equivalents" means a right granted to a Participant
pursuant to Article 8 to receive the equivalent value (in cash or Stock) of
dividends paid on Stock.

         2.15     "Effective Date" shall have the meaning set forth in Section
13.1.

         2.16     "Eligible Individual" means any person who is a member of the
Board, a Consultant or an Employee, as determined by the Administrator.

         2.17     "Employee" means any Company Employee or Partnership Employee.

         2.18     "Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time.

         2.19     "Fair Market Value" means, as of any date, the value of Stock
determined as follows:

                  (a)      If the Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day prior to the date of determination, as reported in
The Wall Street Journal or such other source as the Administrator deems
reliable;

                  (b)      If the Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean of the closing bid and asked prices for the Stock on the date
prior to the date of determination as reported in The Wall Street Journal or
such other source as the Administrator deems reliable; or

                  (c)      In the absence of an established market for the
Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator.

         2.20     "Incentive Stock Option" means an Option that is intended to
be an incentive stock option and meets the requirements of Section 422 of the
Code or any successor provision thereto.

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         2.21     "Independent Director" means a member of the Board who is not
a Company Employee or a Partnership Employee.

         2.22     "Non-Employee Director" means a member of the Board who
qualifies as a "Non-Employee Director" as defined in Rule 16b-3(b)(3) of the
Exchange Act, or any successor definition adopted by the Board.

         2.23     "Non-Qualified Stock Option" means an Option that is not
intended to be an Incentive Stock Option.

         2.24     "Option" means a right granted to a Participant pursuant to
Article 5 of the Plan to purchase a specified number of shares of Stock at a
specified price during specified time periods. An Option may be either an
Incentive Stock Option or a Non-Qualified Stock Option.

         2.25     "Other Stock-Based Award" means an Award granted or
denominated in Stock or units of Stock pursuant to Section 8.4 of the Plan.

         2.26     "Participant" means any Eligible Individual who, as a member
of the Board, a Consultant or an Employee, has been granted an Award pursuant to
the Plan.

         2.27     "Partnership Agreement" means the Agreement of Limited
Partnership of BioMed Realty, L.P., dated as of April 30, 2004, as the same may
be amended, modified or restated from time to time.

         2.28     "Partnership Consultant" means any consultant or adviser if:

                  (a)      The consultant or adviser renders bona fide services
to the Partnership or any Partnership Subsidiary;

                  (b)      The services rendered by the consultant or adviser
are not in connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market for
the Company's securities; and

                  (c)      The consultant or adviser is a natural person who has
contracted directly with the Partnership or any Partnership Subsidiary to render
such services.

         2.29     "Partnership Employee" means any employee (as defined in
accordance with Section 3401(c) of the Code) of the Partnership or any entity
which is then a Partnership Subsidiary.

         2.30     "Partnership Subsidiary" means (i) any entity of which a
majority of the outstanding voting stock or voting power is beneficially owned
directly or indirectly by the Partnership, or (ii) any partnership or limited
liability company of which 50% or more of the capital and profits interest is
owned, directly or indirectly, by the Partnership or by one or more Partnership
Subsidiaries or by the Partnership and one or more Partnership Subsidiaries.

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         2.31     "Performance-Based Award" means an Award granted to selected
Covered Employees pursuant to Articles 6 and 8, but which is subject to the
terms and conditions set forth in Article 9.

         2.32     "Performance Bonus Award" has the meaning set forth in Section
8.5.

         2.33     "Performance Criteria" means the criteria that the
Administrator selects for purposes of establishing the Performance Goal or
Performance Goals for a Participant for a Performance Period. The Performance
Criteria that will be used to establish Performance Goals are limited to the
following: net earnings (either before or after interest, taxes, depreciation
and amortization), sales or revenue, net income (either before or after taxes),
operating earnings, cash flow (including, but not limited to, operating cash
flow and free cash flow), return on net assets, return on stockholders' equity,
return on sales, gross or net profit margin, working capital, earnings per
share, price per share of Stock, and funds from operations, in each case as
determined according to U.S. generally accepted accounting principles or in
accordance with standards established by the Board of Governors of the National
Association of Real Estate Investment Trusts in its March 1995 White Paper (as
amended in November 1999 and April 2002, and as further amended from time to
time), any of which may be measured either in absolute terms or as compared to
any incremental increase or as compared to results of a peer group. The
Administrator shall, within the time prescribed by Section 162(m) of the Code,
define in an objective fashion the manner of calculating the Performance
Criteria it selects to use for such Performance Period for such Participant.

         2.34     "Performance Goals" means, for a Performance Period, the goals
established in writing by the Administrator for the Performance Period based
upon the Performance Criteria. Depending on the Performance Criteria used to
establish such Performance Goals, the Performance Goals may be expressed in
terms of overall Company performance or the performance of a Subsidiary,
division or other operational unit. The Administrator, in its discretion, may,
within the time prescribed by Section 162(m) of the Code, adjust or modify the
calculation of Performance Goals for such Performance Period in order to prevent
the dilution or enlargement of the rights of Participants (i) in the event of,
or in anticipation of, any unusual or extraordinary corporate item, transaction,
event, or development, or (ii) in recognition of, or in anticipation of, any
other unusual or nonrecurring events affecting the Company, or the financial
statements of the Company, or in response to, or in anticipation of, changes in
applicable laws, regulations, accounting principles, or business conditions.

         2.35     "Performance Period" means the one or more periods of time,
which may be of varying and overlapping durations, as the Administrator may
select, over which the attainment of one or more Performance Goals will be
measured for the purpose of determining a Participant's right to, and the
payment of, a Performance-Based Award.

         2.36     "Plan" means this BioMed Realty Trust, Inc. and BioMed Realty,
L.P. 2004 Incentive Award Plan, as it may be amended from time to time.

         2.37     "Public Trading Date" means the first date upon which Stock is
listed (or approved for listing) upon notice of issuance on any securities
exchange or designated (or approved for designation) upon notice of issuance as
a national market security on an interdealer quotation system.

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         2.38     "Qualified Performance-Based Compensation" means any
compensation that is intended to qualify as "qualified performance-based
compensation" as described in Section 162(m)(4)(C) of the Code.

         2.39     "REIT" means a real estate investment trust within the meaning
of Sections 856 through 860 of the Code.

         2.40     "Restricted Stock" means Stock awarded to a Participant
pursuant to Article 6 that is subject to certain restrictions and may be subject
to risk of forfeiture or repurchase.

         2.41     "Restricted Stock Unit" means an Award granted pursuant to
Section 8.3.

         2.42     "Securities Act" shall mean the Securities Act of 1933, as
amended from time to time.

         2.43     "Stock" means the common stock of the Company, par value $0.01
per share, and such other securities of the Company that may be substituted for
Stock pursuant to Article 11.

         2.44     "Stock Appreciation Right" or "SAR" means a right granted
pursuant to Article 7 to receive a payment equal to the excess of the Fair
Market Value of a specified number of shares of Stock on the date the SAR is
exercised over the Fair Market Value of such number of shares of Stock on the
date the SAR was granted as set forth in the applicable Award Agreement.

         2.45     "Stock Payment" means (a) a payment in the form of shares of
Stock, or (b) an option or other right to purchase shares of Stock, as part of
any bonus, deferred compensation or other arrangement, made in lieu of all or
any portion of the compensation, granted pursuant to Section 8.2.

         2.46     "Subsidiary" means any Company Subsidiary or Partnership
Subsidiary.

                                   ARTICLE 3

                           SHARES SUBJECT TO THE PLAN

         3.1      Number of Shares.

                  (a)      Subject to Article 11 and Section 3.1(b), the
aggregate number of shares of Stock which may be issued or transferred pursuant
to Awards under the Plan shall be 2,500,000 shares.

                  (b)      To the extent that an Award terminates, expires, or
lapses for any reason, any shares of Stock subject to the Award shall again be
available for the grant of an Award pursuant to the Plan. Additionally, any
shares of Stock tendered or withheld to satisfy the grant or exercise price or
tax withholding obligation pursuant to any Award shall again be available for
the grant of an Award pursuant to the Plan. To the extent permitted by
applicable law or any exchange rule, shares of Stock issued in assumption of, or
in substitution for, any outstanding awards of any entity acquired in any form
of combination by the Company, the Partnership or

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any Subsidiary shall not be counted against shares of Stock available for grant
pursuant to this Plan.

         3.2      Stock Distributed. Any Stock distributed pursuant to an Award
may consist, in whole or in part, of authorized and unissued Stock or Stock
purchased on the open market.

         3.3      Limitation on Number of Shares Subject to Awards.
Notwithstanding any provision in the Plan to the contrary, and subject to
Article 11, the maximum number of shares of Stock with respect to one or more
Awards that may be granted to any one Participant during a rolling three-year
period (measured retrospectively from the date of any grant) shall be 1,500,000;
provided, however, that the foregoing limitation shall not apply prior to the
Public Trading Date and, following the Public Trading Date, the foregoing
limitation shall not apply until the earliest of: (a) the first material
modification of the Plan (including any increase in the number of shares
reserved for issuance under the Plan in accordance with Section 3.1); (b) the
issuance of all of the shares of Stock reserved for issuance under the Plan; (c)
the expiration of the Plan; (d) the first meeting of stockholders at which
members of the Board are to be elected that occurs after the close of the third
calendar year following the calendar year in which occurred the first
registration of an equity security of the Company under Section 12 of the
Exchange Act; or (e) such other date required by Section 162(m) of the Code and
the rules and regulations promulgated thereunder.

                                   ARTICLE 4

                          ELIGIBILITY AND PARTICIPATION

         4.1      Eligibility. Persons eligible to participate in this Plan
include Employees, Consultants and all members of the Board, as determined by
the Administrator.

         4.2      Participation. Subject to the provisions of the Plan, the
Administrator may, from time to time, select from among all Eligible Individuals
those to whom Awards shall be granted and shall determine the nature and amount
of each Award. No individual shall have any right to be granted an Award
pursuant to this Plan.

                                   ARTICLE 5

                                 STOCK OPTIONS

         5.1      General. The Administrator is authorized to grant Options to
Eligible Individuals on the following terms and conditions:

                  (a)      Exercise Price. The exercise price per share of Stock
subject to an Option shall be determined by the Administrator and set forth in
the Award Agreement; provided that the exercise price for any Option shall not
be less than par value.

                  (b)      Time and Conditions of Exercise. The Administrator
shall determine the time or times at which an Option may be exercised in whole
or in part; provided that the term of any Option granted under the Plan shall
not exceed ten years. The Administrator shall also

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determine the performance or other conditions, if any, that must be satisfied
before all or part of an Option may be exercised.

                  (c)      Payment. The Administrator shall determine the
methods, terms and conditions by which the exercise price of an Option may be
paid, and the form and manner of payment, including, without limitation, payment
in the form of cash, promissory note bearing interest at no less than such rate
as shall then preclude the imputation of interest under the Code, shares of
Stock, or other property acceptable to the Administrator and payment through the
delivery of a notice that the Participant has placed a market sell order with a
broker with respect to shares of Stock then issuable upon exercise of the
Option, and that the broker has been directed to pay a sufficient portion of the
net proceeds of the sale to the Company in satisfaction of the Option exercise
price; provided that payment of such proceeds is then made to the Company upon
settlement of such sale), and the methods by which shares of Stock shall be
delivered or deemed to be delivered to Participants. Notwithstanding any other
provision of the Plan to the contrary, (i) no Participant who is a member of the
Board or an "executive officer" of the Company within the meaning of Section
13(k) of the Exchange Act shall be permitted to pay the exercise price of an
Option in any method which would violate Section 13(k) of the Exchange Act, and
(ii) in no event shall the Administrator permit a Participant to pay the
exercise price of an Option with any promissory note that is inconsistent with
the Company's qualification as a REIT.

                  (d)      Evidence of Grant. All Options shall be evidenced by
a written Award Agreement between the Company and the Participant. The Award
Agreement shall include such additional provisions as may be specified by the
Administrator.

         5.2      Incentive Stock Options. Incentive Stock Options may be
granted only to employees (as defined in accordance with Section 3401(c) of the
Code) of the Company or a Company Subsidiary which constitutes a "subsidiary
corporation" of the Company within Section 424(f) of the Code and any applicable
regulations promulgated thereunder, and the terms of any Incentive Stock Options
granted pursuant to the Plan must comply with the following additional
provisions of this Section 5.2:

                  (a)      Exercise Price. Subject to Section 5.2(d) below, the
exercise price per share of Stock subject to an Incentive Stock Option shall be
set by the Administrator; provided that the exercise price per share for any
Incentive Stock Option shall not be less than 100% of the Fair Market Value on
the date of grant.

                  (b)      Expiration of Option. Subject to Section 5.2(d), an
Incentive Stock Option may not be exercised to any extent by anyone after the
first to occur of the following events; provided, however, that the
Administrator may, prior to the expiration of the Incentive Stock Option under
the circumstances described in paragraphs (ii), (iii) or (iv) below, provide in
writing that the Option will expire on a later date, but if the expiration date
of an Incentive Stock Option is so extended, it will automatically become a
Non-Qualified Stock Option:

                           (i)      Ten years from the date it is granted,
unless an earlier time is set in the Award Agreement.

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                           (ii)     Three months after termination of the
Participant's employment for any reason other than the Participant's Disability
or death.

                           (iii)    One year after the termination of the
Participant's employment on account of Disability or death.

                           (iv)     One year after the Participant's death if
the Participant dies while employed or during the three-month period described
in paragraph (ii) or during the one-year period described in paragraph (iii) and
before the Option otherwise expires.

                           Upon the Participant's Disability or death, any
Incentive Stock Options exercisable at the Participant's Disability or death may
be exercised by the Participant's legal representative or representatives, by
the person or persons entitled to do so pursuant to the Participant's last will
and testament, or, if the Participant fails to make testamentary disposition of
such Incentive Stock Option or dies intestate, by the person or persons entitled
to receive the Incentive Stock Option pursuant to the applicable laws of descent
and distribution.

                  (c)      Individual Dollar Limitation. The aggregate Fair
Market Value (determined as of the time the Option is granted) of all shares of
Stock with respect to which Incentive Stock Options are first exercisable by a
Participant in any calendar year may not exceed $100,000.00 or such other
limitation as imposed by Section 422(d) of the Code, or any successor provision.
To the extent that Incentive Stock Options are first exercisable by a
Participant in excess of such limitation, the excess shall be considered
Non-Qualified Stock Options.

                  (d)      Ten Percent Owners. An Incentive Stock Option shall
be granted to any individual who, at the date of grant, owns stock possessing
more than ten percent of the total combined voting power of all classes of Stock
of the Company or any "subsidiary corporation" of the Company or "parent
corporation" of the Company (each within the meaning of Section 424 of the Code)
only if such Option is granted at an exercise price per share that is not less
than 110% of Fair Market Value on the date of grant and the Option is
exercisable for no more than five years from the date of grant.

                  (e)      Transfer Restriction. An Incentive Stock Option shall
not be transferable by the Participant other than by will or by the laws of
descent or distribution.

                  (f)      Expiration of Incentive Stock Options. No Award of an
Incentive Stock Option may be made pursuant to this Plan after the Expiration
Date.

                  (g)      Right to Exercise. During a Participant's lifetime,
an Incentive Stock Option may be exercised only by the Participant.

         5.3      Substitution of Stock Appreciation Rights. The Administrator
may provide in the Award Agreement evidencing the grant of an Option that the
Administrator, in its sole discretion, shall have to right to substitute a Stock
Appreciation Right for such Option at any time prior to or upon exercise of such
Option, subject to the provisions of Section 7.3 hereof; provided that such
Stock Appreciation Right shall be exercisable for the same number of shares of
Stock for which such substituted Option would have been exercisable.

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         5.4      Paperless Exercise. In the event that the Company establishes,
for itself or using the services of a third party, an automated system for the
exercise of Options, such as a system using an internet website or interactive
voice response, then the paperless exercise of Options by a Participant may be
permitted through the use of such an automated system.

         5.5      Transfer of Shares to a Company Employee, Consultant or
Independent Director. As soon as practicable after receipt by the Company,
pursuant to Section 5.1(c), of payment for the shares with respect to which an
Option (which in the case of a Company Employee, Company Consultant or
Independent Director was issued to and is held by such Participant in such
capacity), or portion thereof, is exercised by a Participant who is a Company
Employee, Independent Director or Company Consultant, then, with respect to each
such exercise, the Company shall transfer to the Participant the number of
shares equal to

                  (a)      The amount of the payment made by the Participant to
the Company pursuant to Section 5.1(c), divided by

                  (b)      The price per share of the shares subject to the
Option as determined pursuant to Section 5.1(a).

         5.6.     Transfer of Shares to a Partnership Employee or Partnership
Consultant. As soon as practicable after receipt by the Company, pursuant to
Section 5.1(c), of payment for the shares with respect to which an Option (which
was issued to and is held by a Partnership Employee or Partnership Consultant in
such capacity), or portion thereof, is exercised by a Participant who is a
Partnership Employee or Partnership Consultant, then, with respect to each such
exercise:

                  (a)      the Company shall transfer to the Participant the
number of shares equal to (i) the amount of the payment made by the Participant
to the Company pursuant to Section 5.1(c) divided by (ii) the Fair Market Value
of a share of Stock at the time of exercise (the "Partnership Holder Purchased
Shares");

                  (b)      the Company shall sell to the Partnership the number
of shares (the "Partnership Purchased Shares") equal to the excess of (i) the
amount obtained by dividing (A) the amount of the payment made by the
Participant to the Company pursuant to Section 5.1(c) by (B) the price per share
of the shares subject to the Option as determined pursuant to Section 5.1(a),
over (ii) the Partnership Holder Purchased Shares. The price to be paid by the
Partnership to the Company for the Partnership Purchased Shares (the
"Partnership Purchase Price") shall be an amount equal to the product of (x) the
number of Partnership Purchased Shares multiplied by (y) the Fair Market Value
of a share of Stock at the time of the exercise; and

                  (c)      as soon as practicable after receipt of the
Partnership Purchased Shares by the Partnership, the Partnership shall transfer
such shares to the Participant at no additional cost, as additional
compensation.

         5.7      Transfer of Payment to the Partnership. As soon as practicable
after receipt by the Company of the amounts described in Sections 5.1(c), 5.5
and 5.6, the Company shall contribute to the Partnership an amount of cash equal
to such payments and the Partnership shall

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issue an additional interest in the Partnership on the terms set forth in the
Partnership Agreement.

                                   ARTICLE 6

                            RESTRICTED STOCK AWARDS

         6.1      Grant of Restricted Stock. The Administrator is authorized to
make Awards of Restricted Stock to any Eligible Individual selected by the
Administrator in such amounts and subject to such terms and conditions as
determined by the Administrator. All Awards of Restricted Stock shall be
evidenced by a written Restricted Stock Award Agreement. Subject to Section 6.6
below, the Administrator shall determine the mechanism for the transfer of the
Restricted Stock and payment therefor in the case of Awards to Partnership
Employees or Partnership Consultants, and any forfeiture or repurchase of such
Restricted Stock pursuant to Section 6.3.

         6.2      Issuance and Restrictions. Restricted Stock shall be subject
to such repurchase restrictions, forfeiture restrictions, restrictions on
transferability and other restrictions as the Administrator may impose
(including, without limitation, limitations on the right to vote Restricted
Stock or the right to receive dividends on the Restricted Stock). These
restrictions may lapse separately or in combination at such times, pursuant to
such circumstances or installments or otherwise as the Administrator determines
at the time of the grant of the Award or thereafter. Alternatively, these
restrictions may lapse pursuant to the satisfaction of one or more Performance
Goals or other specific performance goals as the Administrator determines to be
appropriate at the time of the grant of the Award or thereafter, in each case on
a specified date or dates or over any period or periods determined by the
Administrator.

         6.3      Repurchase or Forfeiture. Except as otherwise determined by
the Administrator at the time of the grant of the Award or thereafter, upon
termination of employment or service during the applicable restriction period,
Restricted Stock that is at that time subject to restrictions shall be forfeited
or subject to repurchase by the Company under such terms as the Administrator
shall determine; provided, however, that the Administrator may (a) provide in
any Restricted Stock Award Agreement that restrictions or forfeiture conditions
relating to Restricted Stock will be waived in whole or in part in the event of
terminations resulting from specified causes, and (b) in other cases waive in
whole or in part restrictions or forfeiture conditions relating to Restricted
Stock.

         6.4      Certificates for Restricted Stock. Restricted Stock granted
pursuant to the Plan may be evidenced in such manner as the Administrator shall
determine. If certificates representing shares of Restricted Stock are
registered in the name of the Participant, certificates must bear an appropriate
legend referring to the terms, conditions, and restrictions applicable to such
Restricted Stock, and the Company may, at its discretion, retain physical
possession of the certificate until such time as all applicable restrictions
lapse.

         6.5      Automatic Grants to Independent Directors. During the term of
the Plan, a person who is an Independent Director as of the Public Trading Date
automatically shall be granted (i) 2,000 shares of Restricted Stock (subject to
adjustment as provided in Article 11) on the Public Trading Date and (ii) 2,000
shares of Restricted Stock (subject to adjustment as provided in

                                       12
<PAGE>
 Article 11) on the date of each annual meeting of the Company's stockholders
after the Public Trading Date. During the term of the Plan, a person who is
initially elected to the Board following the Public Trading Date and who is an
Independent Director at the time of such initial election automatically shall be
granted (y) 2,000 shares of Restricted Stock (subject to adjustment as provided
in Article 11) on the date of such initial election and (z) 2,000 shares of
Restricted Stock (subject to adjustment as provided in Article 11) on the date
of each annual meeting of the Company's stockholders after the date of such
election (other than the annual meeting at which the Independent Director
receives an award of Restricted Stock pursuant to clause (y) above). The
purchase price per share of any awards of Restricted Stock pursuant to this
Section 6.5 shall be the par value per share of the Stock. Awards of Restricted
Stock pursuant to this Section 6.5 shall be subject to a repurchase restriction
in favor of the Company in the event of an Independent Director's termination of
service as a Director for any reason. Such repurchase restriction shall lapse on
the first anniversary of the date of issuance of such Restricted Stock, subject
to an Independent Director's continued service as a Director on such date.

         6.6      Restricted Stock Issued to a Partnership Employee or
Partnership Consultant.

                  (a)      In connection with the issuance of shares of
Restricted Stock to any Partnership Employee or Partnership Consultant, the
Partnership Employee or Partnership Consultant shall pay the purchase price for
the shares of Restricted Stock to the Company in exchange for the issuance of
the shares of Restricted Stock.

                  (b)      As soon as practicable after the receipt by the
Company, pursuant to Section 6.6(a), of payment for the shares of Restricted
Stock issued to a Partnership Employee or Partnership Consultant, the Company
shall transfer such purchase price to the Partnership. For tax purposes, such
purchase price shall be treated as paid to the Partnership as the employer of
the Partnership Employee or Partnership Consultant (i.e., not a capital
contribution).

                  (c)      Prior to the time that the Restricted Stock issued to
a Partnership Employee or Partnership Consultant vests, the Company shall make
dividend and other payments to the Partnership Employee or Partnership
Consultant in respect of the Restricted Stock, provided that the Partnership
shall reimburse the Company for such amounts and deduct such amounts as
compensation. In order to effectuate this, in addition to the Partnership's
distributions to the Company with respect to the Partnership units held by the
Company, the Partnership shall make an additional payment to the Company in the
amount of this reimbursement, which shall not be treated as a partnership
distribution. The Company shall not issue a Form 1099 to the Partnership
Employee or Partnership Consultant for these payments.

                  (d)      If and when the Restricted Stock issued to a
Partnership Employee or Partnership Consultant vests, the Partnership shall
issue Partnership units to the Company on the terms set forth in the Partnership
Agreement, and distributions on such units shall be used by the Company to make
future dividend payments on the vested shares of Restricted Stock to the
Partnership Employee or Partnership Consultant.

                  (e)      If the Restricted Stock issued to a Partnership
Employee or Partnership Consultant is forfeited or repurchased pursuant to
Section 6.3, the shares of Restricted Stock shall be returned to the Company
and, if applicable, the Partnership shall return the purchase

                                       13
<PAGE>

price, if any, of the Restricted Stock to the Partnership Employee or
Partnership Consultant.

                                   ARTICLE 7

                            STOCK APPRECIATION RIGHTS

         7.1      Grant of Stock Appreciation Rights. A Stock Appreciation Right
may be granted to any Eligible Individual selected by the Administrator. A Stock
Appreciation Right may be granted (a) in connection and simultaneously with the
grant of an Option, (b) with respect to a previously granted Option, or (c)
independent of an Option. A Stock Appreciation Right shall be subject to such
terms and conditions not inconsistent with the Plan as the Administrator shall
impose and shall be evidenced by an Award Agreement (including, without
limitation, in the case of Awards to Partnership Employees or Partnership
Consultants, the mechanism for the transfer of rights under such Awards).

         7.2      Coupled Stock Appreciation Rights.

                  (a)      A Coupled Stock Appreciation Right ("CSAR") shall be
related to a particular Option and shall be exercisable only when and to the
extent the related Option is exercisable.

                  (b)      A CSAR may be granted to an Eligible Individual for
no more than the number of shares subject to the simultaneously or previously
granted Option to which it is coupled.

                  (c)      A CSAR shall entitle the Participant (or other person
entitled to exercise the Option pursuant to the Plan) to surrender to the
Company the unexercised portion of the Option to which the CSAR relates (to the
extent then exercisable pursuant to its terms) and to receive from the Company
in exchange therefor an amount determined by multiplying (i) the amount (if any)
by which the Fair Market Value of a share of Stock on the date of exercise of
the CSAR exceeds the per share exercise price of the Option to which the CSAR
relates, by (ii) the number of shares of Stock with respect to which the CSAR
shall have been exercised, subject to any limitations the Administrator may
impose.

         7.3      Independent Stock Appreciation Rights.

                  (a)      An Independent Stock Appreciation Right ("ISAR")
shall be unrelated to any Option and shall have a term set by the Administrator.
An ISAR shall be exercisable in such installments as the Administrator may
determine. An ISAR shall cover such number of shares of Stock as the
Administrator may determine. The exercise price per share of Stock subject to
each ISAR shall be set by the Administrator.

                  (b)      An ISAR shall entitle the Participant (or other
person entitled to exercise the ISAR pursuant to the Plan) to exercise all or a
specified portion of the ISAR (to the extent then exercisable pursuant to its
terms) and to receive from the Company an amount determined by multiplying (i)
the amount (if any) by which the Fair Market Value of a share of Stock on the
date of exercise of the ISAR exceeds the exercise price per share of the ISAR,
by (ii) the number of shares of Stock with respect to which the ISAR shall have
been exercised, subject to any

                                       14
<PAGE>

limitations the Administrator may impose.

         7.4      Payment and Limitations on Exercise. Payment of the amounts
determined under Sections 7.2(c) and 7.3(b) above shall be in cash, in Stock
(based on its Fair Market Value as of the date the Stock Appreciation Right is
exercised) or a combination of both, as determined by the Administrator.

                                   ARTICLE 8

                              OTHER TYPES OF AWARDS

         8.1      Dividend Equivalents.

                  (a)      Any Eligible Individual selected by the Administrator
may be granted Dividend Equivalents based on the dividends declared on the
shares of Stock that are subject to any Award, to be credited as of dividend
payment dates, during the period between the date the Award is granted and the
date the Award is exercised, vests or expires, as determined by the
Administrator. Such Dividend Equivalents shall be converted to cash or
additional shares of Stock by such formula and at such time and subject to such
limitations as may be determined by the Administrator. The Administrator shall
specify the mechanism for the transfer of the Stock pursuant to a Dividend
Equivalent Award in the case of Awards to Partnership Employees or Partnership
Consultants.

                  (b)      Dividend Equivalents granted with respect to Options
or SARs that are intended to be Qualified Performance-Based Compensation shall
be payable, with respect to pre-exercise periods, regardless of whether such
Option or SAR is subsequently exercised.

         8.2      Stock Payments. Any Eligible Individual selected by the
Administrator may receive Stock Payments in the manner determined from time to
time by the Administrator; provided, that unless otherwise determined by the
Administrator such Stock Payments shall be made in lieu of base salary, bonus,
or other cash compensation otherwise payable to such Participant. The number of
shares shall be determined by the Administrator and may be based upon the
Performance Goals or other specific performance goals determined appropriate by
the Administrator, determined on the date such Stock Payment is made or on any
date thereafter, in each case on a specified date or dates or over any period or
periods determined by the Administrator. The Administrator shall specify the
mechanism for the transfer of the Stock pursuant to a Stock Payment Award and
payment therefor, if applicable, in the case of Awards to Partnership Employees
or Partnership Consultants.

         8.3      Restricted Stock Units. The Administrator is authorized to
make Awards of Restricted Stock Units to any Eligible Individual selected by the
Administrator in such amounts and subject to such terms and conditions as
determined by the Administrator. At the time of grant, the Administrator shall
specify the date or dates on which the Restricted Stock Units shall become fully
vested and nonforfeitable, and may specify such conditions to vesting as it
deems appropriate. Alternatively, Restricted Stock Units may become fully vested
and nonforfeitable pursuant to the satisfaction of one or more Performance Goals
or other specific performance goals as the Administrator determines to be
appropriate at the time of the grant of the Restricted

                                       15
<PAGE>

Stock Units or thereafter, in each case on a specified date or dates or over any
period or periods determined by the Administrator. At the time of grant, the
Administrator shall specify the maturity date applicable to each grant of
Restricted Stock Units which shall be no earlier than the vesting date or dates
of the Award and may be determined at the election of the grantee. On the
maturity date, the Company shall transfer to the Participant one unrestricted,
fully transferable share of Stock for each Restricted Stock Unit scheduled to be
paid out on such date and not previously forfeited. The Administrator shall
specify the purchase price, if any, to be paid by the Participant to the Company
for such shares of Stock pursuant to Restricted Stock Unit Awards and the
mechanism for the transfer of the Stock and payment therefor in the case of
Awards to Partnership Employees or Partnership Consultants.

         8.4      Other Stock-Based Awards. Any Eligible Individual selected by
the Administrator may be granted one or more Awards that provide such Eligible
Individual with shares of Stock or the right to purchase shares of Stock or that
have a value derived from the value of, or an exercise or conversion privilege
at a price related to, or that are otherwise payable in shares of Stock and
which may be linked to any one or more of the Performance Goals or other
specific performance goals determined appropriate by the Administrator, in each
case on a specified date or dates or over any period or periods determined by
the Administrator. The Administrator shall specify the mechanism for the
transfer of the Stock pursuant to Other Stock-Based Awards and payment therefor
in the case of Awards to Partnership Employees or Partnership Consultants.

         8.5      Performance Bonus Awards. Any Eligible Individual selected by
the Administrator may be granted one or more Performance-Based Awards in the
form of a cash bonus (a "Performance Bonus Award") payable upon the attainment
of Performance Goals that are established by the Administrator and relate to one
or more of the Performance Criteria, in each case on a specified date or dates
or over any period or periods determined by the Administrator. Any such
Performance Bonus Award paid to a Covered Employee shall be based upon
objectively determinable bonus formulas established in accordance with Article
9. The maximum amount of any Performance Bonus Award payable to a Covered
Employee with respect to any fiscal year of the Company shall not exceed
$1,500,000.

         8.6      Term. Except as otherwise provided herein, the term of any
Award of Dividend Equivalents, Stock Payments, Restricted Stock Units, Other
Stock-Based Awards or Performance Bonus Awards shall be set by the Administrator
in its discretion.

         8.7      Exercise or Purchase Price. The Administrator may establish
the exercise or purchase price, if any, of any Award of Stock Payments,
Restricted Stock Units or Other Stock-Based Award; provided, however, that such
price shall not be less than the par value of a share of Stock on the date of
grant, unless otherwise permitted by applicable state law.

         8.8      Form of Payment. Payments with respect to any Awards granted
under Sections 8.1, 8.2, 8.3 or 8.4 shall be made in cash, in Stock or a
combination of both, as determined by the Administrator.

                                       16
<PAGE>

         8.9      Award Agreement. All Awards under this Article 8 shall be
subject to such additional terms and conditions as determined by the
Administrator and shall be evidenced by a written Award Agreement.

                                   ARTICLE 9

                            PERFORMANCE-BASED AWARDS

         9.1      Purpose. The purpose of this Article 9 is to provide the
Administrator the ability to qualify Awards other than Options and SARs and that
are granted pursuant to Articles 6 and 8 as Qualified Performance-Based
Compensation. If the Administrator, in its discretion, decides to grant a
Performance-Based Award to a Covered Employee, the provisions of this Article 9
shall control over any contrary provision contained in Articles 6 or 8;
provided, however, that the Administrator may in its discretion grant Awards to
Covered Employees that are based on Performance Criteria or Performance Goals
but that do not satisfy the requirements of this Article 9.

         9.2      Applicability. This Article 9 shall apply only to those
Covered Employees selected by the Administrator to receive Performance-Based
Awards. The designation of a Covered Employee as a Participant for a Performance
Period shall not in any manner entitle the Participant to receive an Award for
the period. Moreover, designation of a Covered Employee as a Participant for a
particular Performance Period shall not require designation of such Covered
Employee as a Participant in any subsequent Performance Period and designation
of one Covered Employee as a Participant shall not require designation of any
other Covered Employees as a Participant in such period or in any other period.

         9.3      Procedures with Respect to Performance-Based Awards. To the
extent necessary to comply with the Qualified Performance-Based Compensation
requirements of Section 162(m)(4)(C) of the Code, with respect to any Award
granted under Articles 6 and 8 which may be granted to one or more Covered
Employees, no later than ninety (90) days following the commencement of any
fiscal year in question or any other designated fiscal period or period of
service (or such other time as may be required or permitted by Section 162(m) of
the Code), the Administrator shall, in writing, (a) designate one or more
Covered Employees, (b) select the Performance Criteria applicable to the
Performance Period, (c) establish the Performance Goals, and amounts of such
Awards, as applicable, which may be earned for such Performance Period, and (d)
specify the relationship between Performance Criteria and the Performance Goals
and the amounts of such Awards, as applicable, to be earned by each Covered
Employee for such Performance Period. Following the completion of each
Performance Period, the Administrator shall certify in writing whether the
applicable Performance Goals have been achieved for such Performance Period. In
determining the amount earned by a Covered Employee, the Administrator shall
have the right to reduce or eliminate (but not to increase) the amount payable
at a given level of performance to take into account additional factors that the
Administrator may deem relevant to the assessment of individual or corporate
performance for the Performance Period.

         9.4      Payment of Performance-Based Awards. Unless otherwise provided
in the applicable Award Agreement, a Participant must be employed by the
Company, the Partnership

                                       17
<PAGE>

or a Subsidiary on the day a Performance-Based Award for such Performance Period
is paid to the Participant. Furthermore, a Participant shall be eligible to
receive payment pursuant to a Performance-Based Award for a Performance Period
only if the Performance Goals for such period are achieved.

         9.5      Additional Limitations. Notwithstanding any other provision of
the Plan, any Award which is granted to a Covered Employee and is intended to
constitute Qualified Performance-Based Compensation shall be subject to any
additional limitations set forth in Section 162(m) of the Code (including any
amendment to Section 162(m) of the Code) or any regulations or rulings issued
thereunder that are requirements for qualification as qualified
performance-based compensation as described in Section 162(m)(4)(C) of the Code,
and the Plan shall be deemed amended to the extent necessary to conform to such
requirements.

                                   ARTICLE 10

                         PROVISIONS APPLICABLE TO AWARDS

         10.1     Stand-Alone and Tandem Awards. Awards granted pursuant to the
Plan may, in the discretion of the Administrator, be granted either alone, in
addition to, or in tandem with, any other Award granted pursuant to the Plan.
Awards granted in addition to or in tandem with other Awards may be granted
either at the same time as or at a different time from the grant of such other
Awards.

         10.2     Award Agreement. Awards under the Plan shall be evidenced by
Award Agreements that set forth the terms, conditions and limitations for each
Award which may include the term of an Award, the provisions applicable in the
event the Participant's employment or service terminates, and the Company's
authority to unilaterally or bilaterally amend, modify, suspend, cancel or
rescind an Award.

         10.3     Limits on Transfer. No right or interest of a Participant in
any Award may be pledged, encumbered, or hypothecated to or in favor of any
party other than the Company, the Partnership or a Subsidiary, or shall be
subject to any lien, obligation, or liability of such Participant to any other
party other than the Company, the Partnership or a Subsidiary. Except as
otherwise provided by the Administrator, no Award shall be assigned,
transferred, or otherwise disposed of by a Participant other than by will or the
laws of descent and distribution. The Administrator by express provision in the
Award or an amendment thereto may permit an Award (other than an Incentive Stock
Option) to be transferred to, exercised by and paid to certain persons or
entities related to the Participant, including but not limited to members of the
Participant's family, charitable institutions, or trusts or other entities whose
beneficiaries or beneficial owners are members of the Participant's family
and/or charitable institutions, or to such other persons or entities as may be
expressly approved by the Administrator, pursuant to such conditions and
procedures as the Administrator may establish. Any permitted transfer shall be
subject to the condition that the Administrator receive evidence satisfactory to
it that the transfer is being made for estate and/or tax planning purposes (or
to a "blind trust" in connection with the Participant's termination of
employment or service with the Company, the Partnership or a Subsidiary to
assume a position with a governmental, charitable, educational or similar
non-

                                       18
<PAGE>

profit institution) and on a basis consistent with the Company's lawful
issue of securities.

         10.4     Beneficiaries. Notwithstanding Section 10.3, a Participant
may, in the manner determined by the Administrator, designate a beneficiary to
exercise the rights of the Participant and to receive any distribution with
respect to any Award upon the Participant's death. A beneficiary, legal
guardian, legal representative, or other person claiming any rights pursuant to
the Plan is subject to all terms and conditions of the Plan and any Award
Agreement applicable to the Participant, except to the extent the Plan and Award
Agreement otherwise provide, and to any additional restrictions deemed necessary
or appropriate by the Administrator. If the Participant is married and resides
in a community property state, a designation of a person other than the
Participant's spouse as his or her beneficiary with respect to more than 50% of
the Participant's interest in the Award shall not be effective without the prior
written consent of the Participant's spouse. If no beneficiary has been
designated or survives the Participant, payment shall be made to the person
entitled thereto pursuant to the Participant's will or the laws of descent and
distribution. Subject to the foregoing, a beneficiary designation may be changed
or revoked by a Participant at any time provided the change or revocation is
filed with the Administrator.

         10.5     Stock Certificates. Notwithstanding anything herein to the
contrary, the Company shall not be required to issue or deliver any certificates
evidencing shares of Stock pursuant to the exercise of any Award, unless and
until the Board has determined, with advice of counsel, that the issuance and
delivery of such certificates is in compliance with all applicable laws,
regulations of governmental authorities and, if applicable, the requirements of
any exchange on which the shares of Stock are listed or traded. All Stock
certificates delivered pursuant to the Plan are subject to any stop-transfer
orders and other restrictions as the Administrator deems necessary or advisable
to comply with federal, state, or foreign jurisdiction, securities or other
laws, rules and regulations and the rules of any national securities exchange or
automated quotation system on which the Stock is listed, quoted, or traded. The
Administrator may place legends on any Stock certificate to reference
restrictions applicable to the Stock. In addition to the terms and conditions
provided herein, the Administrator may require that a Participant make such
reasonable covenants, agreements, and representations as the Administrator, in
its discretion, deems advisable in order to comply with any such laws,
regulations, or requirements. The Administrator shall have the right to require
any Participant to comply with any timing or other restrictions with respect to
the settlement or exercise of any Award, including a window-period limitation,
as may be imposed in the discretion of the Administrator.

                                   ARTICLE 11

                          CHANGES IN CAPITAL STRUCTURE

         11.1     Adjustments.

                  (a)      In the event of any stock dividend, stock split,
combination or exchange of shares, merger, consolidation, spin-off,
recapitalization, distribution of Company assets to stockholders (other than
normal cash dividends), or any other corporate event affecting the Stock or the
share price of the Stock, the Administrator may make such proportionate
adjustments, if any, as the Administrator in its discretion may deem appropriate
to reflect such change with

                                       19
<PAGE>

respect to (i) the aggregate number and type of shares that may be issued under
the Plan (including, but not limited to, adjustments of the limitations in
Sections 3.1, 3.3 and 6.5); (ii) the terms and conditions of any outstanding
Awards (including, without limitation, any applicable performance targets or
criteria with respect thereto); and (iii) the grant or exercise price per share
for any outstanding Awards under the Plan. Any adjustment affecting an Award
intended as Qualified Performance-Based Compensation shall be made consistent
with the requirements of Section 162(m) of the Code.

                  (b)      In the event of any transaction or event described in
Section 11.1(a) or any unusual or nonrecurring transactions or events affecting
the Company, any affiliate of the Company, or the financial statements of the
Company or any affiliate (including without limitation any Change in Control),
or of changes in applicable laws, regulations or accounting principles, and
whenever the Administrator determines that such action is appropriate in order
to prevent the dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan or with respect to any Award under
the Plan, to facilitate such transactions or events or to give effect to such
changes in laws, regulations or principles, the Administrator, in its sole
discretion and on such terms and conditions as it deems appropriate, either by
the terms of the Award or by action taken prior to the occurrence of such
transaction or event and either automatically or upon the Participant's request,
is hereby authorized to take any one or more of the following actions:

                           (i)      To provide for either (A) termination of any
such Award in exchange for an amount of cash, if any, equal to the amount that
would have been attained upon the exercise of such Award or realization of the
Participant's rights (and, for the avoidance of doubt, if as of the date of the
occurrence of the transaction or event described in this Section 11.1(b) the
Administrator determines in good faith that no amount would have been attained
upon the exercise of such Award or realization of the Participant's rights, then
such Award may be terminated by the Company without payment) or (B) the
replacement of such Award with other rights or property selected by the
Administrator in its sole discretion;

                           (ii)     To provide that such Award be assumed by the
successor or survivor corporation, or a parent or subsidiary thereof, or shall
be substituted for by similar options, rights or awards covering the stock of
the successor or survivor corporation, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of shares and prices; and

                           (iii)    To make adjustments in the number and type
of shares of Stock (or other securities or property) subject to outstanding
Awards, and in the number and kind of outstanding Restricted Stock and/or in the
terms and conditions of (including the grant or exercise price), and the
criteria included in, outstanding options, rights and awards and options, rights
and awards which may be granted in the future;

                           (iv)     To provide that such Award shall be
exercisable or payable or fully vested with respect to all shares covered
thereby, notwithstanding anything to the contrary in the Plan or the applicable
Award Agreement; and

                                       20
<PAGE>

                           (v)      To provide that the Award cannot vest, be
exercised or become payable after such event.

         11.2     Acceleration Upon a Change in Control. Notwithstanding Section
11.1, and except as may otherwise be provided in any applicable Award Agreement,
if a Change in Control occurs and a Participant's Awards are not continued,
converted, assumed, or replaced by (a) the Company or a parent or Subsidiary of
the Company, or (b) a successor or a parent or subsidiary of such successor,
such Awards shall become fully exercisable and all forfeiture restrictions on
such Awards shall lapse. Upon, or in anticipation of, a Change in Control, the
Administrator may cause any and all Awards outstanding hereunder to terminate at
a specific time in the future, including but not limited to the date of such
Change in Control, and shall give each Participant the right to exercise such
Awards during a period of time as the Administrator, in its sole and absolute
discretion, shall determine.

         11.3     No Other Rights. Except as expressly provided in the Plan, no
Participant shall have any rights by reason of any subdivision or consolidation
of shares of stock of any class, the payment of any dividend, any increase or
decrease in the number of shares of stock of any class or any dissolution,
liquidation, merger, or consolidation of the Company or any other corporation.
Except as expressly provided in the Plan or pursuant to action of the
Administrator under the Plan, no issuance by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number of shares of Stock subject to an Award or the grant or exercise price of
any Award.

                                   ARTICLE 12

                                 ADMINISTRATION

         12.1     Administrator. Unless and until the Board delegates
administration of the Plan to a Committee as set forth below, the Plan shall be
administered by the full Board, and for such purposes the term "Administrator"
as used in this Plan shall be deemed to refer to the Board. From and after the
Public Trading Date, the "Administrator" of the Plan shall be the Compensation
Committee of the Board (or another committee or a subcommittee of the Board to
which the Board delegates administration of the Plan (such committee, the
"Committee"), which Committee shall consist solely of two or more members of the
Board each of whom is both an "outside director," within the meaning of Section
162(m) of the Code, and a Non-Employee Director. Notwithstanding the foregoing:
(a) the full Board, acting by a majority of its members in office, shall conduct
the general administration of the Plan with respect to all Awards granted to
Independent Directors and for purposes of such Awards the term "Administrator"
as used in this Plan shall be deemed to refer to the Board and (b) the Committee
may delegate its authority hereunder to the extent permitted by Section 12.5.
Appointment of Committee members shall be effective upon acceptance of
appointment. The Board may abolish the Committee at any time and revest in the
Board the administration of the Plan. Committee members may resign at any time
by delivering written notice to the Board. Vacancies in the Committee may only
be filled by the Board.

                                       21
<PAGE>
         12.2     Action by the Administrator. A majority of the Administrator
shall constitute a quorum. The acts of a majority of the members present at any
meeting at which a quorum is present, and, subject to applicable law, acts
approved in writing by a majority of the Administrator in lieu of a meeting,
shall be deemed the acts of the Administrator. Each member of the Administrator
is entitled to, in good faith, rely or act upon any report or other information
furnished to that member by any officer or other employee of the Company or any
Subsidiary, the Company's independent certified public accountants, or any
executive compensation consultant or other professional retained by the Company
to assist in the administration of the Plan.

         12.3     Authority of Administrator. Subject to any specific
designation in the Plan, the Administrator has the exclusive power, authority
and discretion to:

                  (a)      Designate Participants to receive Awards;

                  (b)      Determine the type or types of Awards to be granted
to each Participant;

                  (c)      Determine the number of Awards to be granted and the
number of shares of Stock to which an Award will relate;

                  (d)      Determine the terms and conditions of any Award
granted pursuant to the Plan, including, but not limited to, the exercise price,
grant price, or purchase price, any reload provision, any restrictions or
limitations on the Award, any schedule for lapse of forfeiture restrictions or
restrictions on the exercisability of an Award, and accelerations or waivers
thereof, any provisions related to non-competition and recapture of gain on an
Award, based in each case on such considerations as the Administrator in its
sole discretion determines; provided, however, that the Administrator shall not
have the authority to accelerate the vesting or waive the forfeiture of any
Performance-Based Awards;

                  (e)      Determine whether, to what extent, and pursuant to
what circumstances an Award may be settled in, or the exercise price of an Award
may be paid in, cash, Stock, other Awards, or other property, or an Award may be
canceled, forfeited, or surrendered;

                  (f)      Prescribe the form of each Award Agreement, which
need not be identical for each Participant;

                  (g)      Decide all other matters that must be determined in
connection with an Award;

                  (h)      Establish, adopt, or revise any rules and regulations
as it may deem necessary or advisable to administer the Plan;

                  (i)      Interpret the terms of, and any matter arising
pursuant to, the Plan or any Award Agreement; and

                  (j)      Make all other decisions and determinations that may
be required pursuant to the Plan or as the Administrator deems necessary or
advisable to administer the Plan.

                                       22
<PAGE>

         12.4     Decisions Binding. The Administrator's interpretation of the
Plan, any Awards granted pursuant to the Plan, any Award Agreement and all
decisions and determinations by the Administrator with respect to the Plan are
final, binding, and conclusive on all parties.

         12.5     Delegation of Authority. To the extent permitted by applicable
law, the Committee may from time to time delegate to a committee of one or more
members of the Board or one or more officers of the Company the authority to
grant or amend Awards to Participants other than (a) senior executives of the
Company who are subject to Section 16 of the Exchange Act, (b) Covered
Employees, or (c) officers of the Company (or members of the Board) to whom
authority to grant or amend Awards has been delegated hereunder. Any delegation
hereunder shall be subject to the restrictions and limits that the Committee
specifies at the time of such delegation, and the Committee may at any time
rescind the authority so delegated or appoint a new delegatee. At all times, the
delegatee appointed under this Section 12.5 shall serve in such capacity at the
pleasure of the Committee.

                                   ARTICLE 13

                          EFFECTIVE AND EXPIRATION DATE

         13.1     Effective Date. The Plan is effective as of August 3, 2004
(the "Effective Date").

         13.2     Expiration Date. The Plan will expire on, and no Award may be
granted pursuant to the Plan on or after, August 2, 2014 (the "Expiration
Date"). Any Awards that are outstanding on the Expiration Date shall remain in
force according to the terms of the Plan and the applicable Award Agreement.
Each Award Agreement shall provide that it will expire on the tenth anniversary
of the date of grant of the Award to which it relates.

                                   ARTICLE 14

                    AMENDMENT, MODIFICATION, AND TERMINATION

         14.1     Amendment, Modification, And Termination. The Board or the
Committee may terminate, amend or modify the Plan; provided, however, that (a)
to the extent necessary to comply with any applicable law, regulation, or stock
exchange rule, the Company shall obtain stockholder approval of any Plan
amendment in such a manner and to such a degree as required, and (b) stockholder
approval is required for any amendment to the Plan that increases the number of
shares available under the Plan (other than any adjustment as provided by
Article 11). Notwithstanding any provision in this Plan to the contrary, absent
approval of the stockholders of the Company, no Option may be amended to reduce
the per share exercise price of the shares subject to such Option below the per
share exercise price as of the date the Option is granted and, except as
permitted by Article 11, no Option may be granted in exchange for, or in
connection with, the cancellation or surrender of an Option having a higher per
share exercise price.

         14.2     Awards Previously Granted. No termination, amendment, or
modification of the Plan shall adversely affect in any material way any Award
previously granted pursuant to the Plan without the prior written consent of the
Participant.

                                   ARTICLE 15

                                       23
<PAGE>

                               GENERAL PROVISIONS

         15.1     No Rights to Awards. No Participant, employee, or other person
shall have any claim to be granted any Award pursuant to the Plan, and neither
the Company nor the Administrator is obligated to treat Participants, employees,
and other persons uniformly.

         15.2     No Stockholders Rights. No Award gives the Participant any of
the rights of a stockholder of the Company unless and until shares of Stock are
in fact issued to such person in connection with such Award.

         15.3     Withholding. The Company, the Partnership or any Subsidiary
shall have the authority and the right to deduct or withhold, or require a
Participant to pay an amount sufficient to satisfy federal, state, local and
foreign taxes (including the Participant's FICA obligation) required by law to
be withheld with respect to any taxable event concerning a Participant arising
as a result of this Plan. The Administrator may in its discretion and in
satisfaction of the foregoing requirement allow a Participant to elect to have
the Company, the Partnership or a Subsidiary, as applicable, withhold shares of
Stock otherwise issuable under an Award (or allow the return of shares of Stock)
having a Fair Market Value equal to the sums required to be withheld.
Notwithstanding any other provision of the Plan, the number of shares of Stock
which may be withheld with respect to the issuance, vesting, exercise or payment
of any Award (or which may be repurchased from the Participant of such Award
within six months after such shares of Stock were acquired by the Participant
from the Company) in order to satisfy the Participant's federal, state, local
and foreign income and payroll tax liabilities with respect to the issuance,
vesting, exercise or payment of the Award shall be limited to the number of
shares which have a Fair Market Value on the date of withholding or repurchase
equal to the aggregate amount of such liabilities based on the minimum statutory
withholding rates for federal, state, local and foreign income tax and payroll
tax purposes that are applicable to such supplemental taxable income.

         15.4     No Right to Employment or Services. Nothing in the Plan or any
Award Agreement shall interfere with or limit in any way the right of the
Company, the Partnership or any Subsidiary to terminate any Participant's
employment or services at any time, nor confer upon any Participant any right to
continue in the employ or service of the Company, the Partnership or any
Subsidiary.

         15.5     Unfunded Status of Awards. The Plan is intended to be an
"unfunded" plan for incentive compensation. With respect to any payments not yet
made to a Participant pursuant to an Award, nothing contained in the Plan or any
Award Agreement shall give the Participant any rights that are greater than
those of a general creditor of the Company or any Subsidiary.

         15.6     Indemnification. To the extent allowable pursuant to
applicable law, the Administrator (and each member thereof) shall be indemnified
and held harmless by the Company from any loss, cost, liability, or expense that
may be imposed upon or reasonably incurred by such member in connection with or
resulting from any claim, action, suit, or proceeding to which he or she may be
a party or in which he or she may be involved by reason of any action or failure
to act pursuant to the Plan and against and from any and all amounts paid by him
or her in satisfaction of judgment in such action, suit, or proceeding against
him or her;

                                       24
<PAGE>

provided he or she gives the Company an opportunity, at its own expense, to
handle and defend the same before he or she undertakes to handle and defend it
on his or her own behalf. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such persons may be
entitled pursuant to the Company's Certificate of Incorporation or Bylaws, as a
matter of law, or otherwise, or any power that the Company may have to indemnify
them or hold them harmless.

         15.7     Relationship to other Benefits. No payment pursuant to the
Plan shall be taken into account in determining any benefits pursuant to any
pension, retirement, savings, profit sharing, group insurance, welfare or other
benefit plan of the Company, the Partnership or any Subsidiary except to the
extent otherwise expressly provided in writing in such other plan or an
agreement thereunder.

         15.8     Expenses. The expenses of administering the Plan shall be
borne by the Company, the Partnership and their Subsidiaries.

         15.9     Titles and Headings. The titles and headings of the Sections
in the Plan are for convenience of reference only and, in the event of any
conflict, the text of the Plan, rather than such titles or headings, shall
control.

         15.10    Fractional Shares. No fractional shares of Stock shall be
issued and the Administrator shall determine, in its discretion, whether cash
shall be given in lieu of fractional shares or whether such fractional shares
shall be eliminated by rounding up or down as appropriate.

         15.11    Limitations Applicable to Section 16 Persons. Notwithstanding
any other provision of the Plan, the Plan, and any Award granted or awarded to
any Participant who is then subject to Section 16 of the Exchange Act, shall be
subject to any additional limitations set forth in any applicable exemptive rule
under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of
the Exchange Act) that are requirements for the application of such exemptive
rule. To the extent permitted by applicable law, the Plan and Awards granted or
awarded hereunder shall be deemed amended to the extent necessary to conform to
such applicable exemptive rule.

         15.12    Government and Other Regulations. The obligation of the
Company to make payment of awards in Stock or otherwise shall be subject to all
applicable laws, rules, and regulations, and to such approvals by government
agencies as may be required. The Company shall be under no obligation to
register pursuant to the Securities Act of 1933, as amended, any of the shares
of Stock paid pursuant to the Plan. If the shares paid pursuant to the Plan may
in certain circumstances be exempt from registration pursuant to the Securities
Act of 1933, as amended, the Company may restrict the transfer of such shares in
such manner as it deems advisable to ensure the availability of any such
exemption.

         15.13    Section 83(b) Election Prohibited. No Participant may make an
election under Section 83(b) of the Code with respect to any Award under the
Plan without the consent of the Administrator, which the Administrator may grant
or withhold in its sole discretion.

                                       25
<PAGE>

         15.14    Restrictions on Awards. This Plan shall be interpreted and
construed in a manner consistent with the Company's status as a REIT. No Award
shall be granted or awarded, and with respect to an Award already granted under
the Plan, such Award shall not be exercisable:

                  (a)      to the extent such Award or exercise could cause the
Participant to be in violation of the Ownership Limit (as defined in the
Company's Articles of Incorporation, as amended from time to time); or

                  (b)      if, in the discretion of the Administrator, such
Award or exercise could impair the Company's status as a REIT.

         15.15    Governing Law. The Plan and all Award Agreements shall be
construed in accordance with and governed by the laws of the State of
California, without regard to the conflicts of law principles thereof.

         15.16    Conflicts with Company's Articles of Incorporation.
Notwithstanding any other provision of the Plan, no Participant shall acquire or
have any right to acquire any Stock, and shall not have any other rights under
the Plan, which are prohibited under the Company's Articles of Incorporation, as
amended from time to time.

         15.17    Grant of Awards to Certain Employees or Consultants. The
Company and the Partnership or any Subsidiary may provide through the
establishment of a formal written policy or otherwise for the method by which
shares of Stock and/or payment therefore may be exchanged or contributed between
the Company and such other party, or may be returned to the Company upon any
forfeiture or repurchase of Stock by the Participant, for the purpose of
ensuring that the relationship between the Company and the Partnership or such
Subsidiary remains at arm's length.

                                    * * * * *

         I hereby certify that the foregoing Plan was duly adopted by the Board
of Directors of BioMed Realty Trust, Inc. on August 3, 2004.

                                    * * * * *

         I hereby certify that the foregoing Plan was duly adopted by the Board
of Directors of BioMed Realty Trust, Inc., the General Partner of BioMed Realty,
L.P., on August 3, 2004.

                                   * * * * *

         I hereby certify that the foregoing Plan was duly adopted by the
stockholders of BioMed Realty Trust, Inc. on August 4, 2004.

         Executed on this 4th day of August, 2004.

                                           /s/ Gary A. Kreitzer
                                           -------------------------------------
                                           Secretary, BioMed Realty Trust, Inc.

                                       26<PAGE>

                                                                    EXHIBIT 10.4

                              EMPLOYMENT AGREEMENT

            THIS EMPLOYMENT AGREEMENT (this "Agreement"), effective as of the
Effective Date (as defined below), is entered into by and between BioMed Realty
Trust, Inc., a Maryland corporation (the "REIT"), BioMed Realty, L.P., a
Maryland limited partnership (the "Operating Partnership"), and Alan D. Gold
(the "Executive").

            WHEREAS, the REIT and the Operating Partnership (collectively, the
"Company") desire to employ the Executive and to enter into an agreement
embodying the terms of such employment; and

            WHEREAS, the Executive desires to accept employment with the
Company, subject to the terms and conditions of this Agreement.

            NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

            1.    Employment Period. Subject to the provisions for earlier
termination hereinafter provided, the Executive's employment hereunder shall be
for a term (the "Employment Period") commencing on the Effective Date and ending
on the third anniversary of the Effective Date (the "Initial Termination Date");
provided, however, that this Agreement shall be automatically extended for one
(1) additional year on the Initial Termination Date and on each subsequent
anniversary of the Initial Termination Date (each such extension, a "Renewal
Year"), unless either the Executive or the Company elects not to so extend the
term of the Agreement by notifying the other party, in writing, of such election
not less than six months (6) months prior to the last day of the Employment
Period as then in effect. For purposes of this Agreement, "Effective Date" shall
mean the date of the initial public trading of the REIT's common stock in
connection with its initial public offering.

            2.    Terms of Employment.

            (a)   Position and Duties.

                  (i)   During the Employment Period, the Executive shall serve
      as Chairman of the Board of Directors, Chief Executive Officer and
      President of the REIT and the Operating Partnership and shall perform such
      employment duties as are assigned by the REIT's Board of Directors and
      usual and customary for such positions. In such position, the Executive
      shall report to the REIT's Board of Directors. In addition, during the
      Employment Period, the Company shall use its best efforts to cause the
      Executive to be nominated and elected as Chairman of the REIT's Board of
      Directors; provided, however, that the Company shall not be so obligated
      if cause exists for the removal of the Executive from the REIT's Board of
      Directors or for the failure to nominate or elect the Executive to the
      REIT's Board of Directors. Provided that the Executive is so nominated and
      elected, the Executive hereby agrees to serve as Chairman of the REIT's
      Board of Directors. At the Company's request, the Executive shall serve
      the Company and/or its subsidiaries and affiliates in other offices and
      capacities in addition to the foregoing. In the event that the Executive,
      during the Employment Period, serves in any one or more of such additional
      capacities, the Executive's compensation shall not be increased beyond
      that specified in Section 2(b) of this Agreement. In addition, in the
      event the Executive's

<PAGE>

      service in one or more of such additional capacities is terminated, the
      Executive's compensation, as specified in Section 2(b) of this Agreement,
      shall not be diminished or reduced in any manner as a result of such
      termination for so long as the Executive otherwise remains employed under
      the terms of this Agreement.

                  (ii)  During the Employment Period, and excluding any periods
      of vacation and sick leave to which the Executive is entitled, the
      Executive agrees to devote such attention and time during normal business
      hours to the business and affairs of the Company as are necessary for the
      performance of his duties hereunder. During the Employment Period it shall
      not be a violation of this Agreement for the Executive to (A) serve on
      corporate, civic or charitable boards or committees, (B) fulfill limited
      teaching, speaking and writing engagements or (C) manage his personal
      investments, so long as such activities do not significantly interfere
      with the performance of the Executive's responsibilities as an employee,
      director and officer of the Company in accordance with this Agreement. It
      is expressly understood and agreed that to the extent that any such
      activities have been conducted by the Executive prior to the Effective
      Date, the continued conduct of such activities (or the conduct of
      activities similar in nature and scope thereto) subsequent to the
      Effective Date shall not thereafter be deemed to interfere with the
      performance of the Executive's responsibilities to the Company; provided
      that no such activity that violates any written non-competition agreement
      between the parties shall be permitted.

            (b)   Compensation.

                  (i)   Base Salary. During the Employment Period, the Executive
      shall receive a base salary (the "Base Salary") of $350,000 per annum. The
      Base Salary shall be paid by the Partnership at such intervals as the
      Partnership pays executive salaries generally. The Executive shall provide
      services to the REIT as described in this Agreement for no additional
      salary. During the Employment Period, the Base Salary then in effect shall
      be increased, effective on January 1st of each calendar year, beginning on
      January 1, 2005, for increases in the cost of living based on inflation as
      measured by the federal Consumer Price Index for All Urban Consumers
      ("CPI"). To determine the adjusted Base Salary using the CPI, the Base
      Salary shall be multiplied by a fraction, the numerator of which shall be
      the CPI published for the December of the year immediately preceding the
      date of the Base Salary adjustment (the "First Adjustment Year"), and the
      denominator of which shall be the CPI published for the December of the
      year immediately preceding the First Adjustment Year. Any increase in
      Base Salary shall not serve to limit or reduce any other obligation to the
      Executive under this Agreement. The Base Salary shall not be reduced after
      any such increase and the term "Base Salary" as utilized in this Agreement
      shall refer to Base Salary as so increased from time to time. The Base
      Salary may be reviewed annually by the REIT's Board of Directors, or the
      Compensation Committee thereof, and may be increased beyond the
      cost-of-living adjustment in the discretion of the REIT's Board of
      Directors, or the Compensation Committee thereof.

                  (ii)  Annual Bonus. In addition to the Base Salary, the
      Executive shall be eligible to earn, for each fiscal year of the Company
      ending during the Employment Period, an annual cash performance bonus (an
      "Annual Bonus") under the Company's bonus plan or plans applicable to
      senior executives. The Executive's Annual Bonus shall be at least 50% of
      his Base Salary actually paid for such year. The Executive's actual

                                       -2-

<PAGE>

      Annual Bonus may be up to 200% of the Base Salary actually paid for such
      year, determined on the basis of the Executive's and/or the Company's
      attainment of objective financial or other operating criteria established
      by the REIT's Board of Directors, or the Compensation Committee thereof in
      accordance with the terms and conditions of such bonus plan(s). The Annual
      Bonus shall be paid to the Executive by the Partnership within
      seventy-five (75) days following the end of each fiscal year.

                  (iii) Incentive, Savings and Retirement Plans. During the
      Employment Period, the Executive shall be entitled to participate in all
      other incentive plans, practices, policies and programs, and all savings
      and retirement plans, practices, policies and programs, in each case that
      are applicable generally to senior executives of the Company under the
      terms and conditions therein as in effect from time to time.

                  (iv)  Welfare Benefit Plans. During the Employment Period, the
      Executive and the Executive's eligible family members shall be eligible
      for participation in the welfare benefit plans, practices, policies and
      programs (including, if applicable, medical, dental, disability, employee
      life, group life and accidental death insurance plans and programs)
      maintained by the Company for its senior executives under the terms and
      conditions therein as in effect from time to time; provided, however, that
      the Company shall provide the Executive with a long-term disability policy
      that provides for the payment of benefits at least equal to 60% of his
      Base Salary.

                  (v)   Expenses. During the Employment Period, the Executive
      shall be entitled to receive prompt reimbursement for all reasonable
      business expenses incurred by the Executive in accordance with the
      policies, practices and procedures of the Company provided to senior
      executives of the Company under the terms and conditions therein as in
      effect from time to time.

                  (vi)  Fringe Benefits. During the Employment Period, the
      Executive shall be entitled to such fringe benefits and perquisites as are
      provided by the Company to its senior executives from time to time, in
      accordance with the policies, practices and procedures of the Company, and
      shall receive such additional fringe benefits and perquisites as the
      Company may, in its discretion, from time-to-time provide. The Company
      shall also reimburse Executive for (a) the costs of maintaining a cellular
      phone, and (b) the costs of maintaining an automobile in an amount up to
      $1,000 per month.

                  (vii) Vacation. During the Employment Period, the Executive
      shall be entitled to four (4) weeks paid vacation.

                  (viii) Term Life Insurance. In addition to any term life
      insurance provided to other senior executives of the Company, the Company
      shall purchase a term life insurance policy in the amount of $1,000,000 on
      the life of the Executive, commencing as soon as practicable following the
      Effective Date. Except as provided in Section 4 below, the policy shall
      remain in effect for the Employment Period. The obligation of the Company
      to purchase such policy shall be conditioned on Executive's successful
      completion of any required medical examination(s) such that the policy can
      be bought at standard rates. The Executive shall, in his sole discretion,
      name the beneficiaries of the policy.

                  (ix)  Equity Grant. The REIT shall, as of the date of the
      initial trading of the REIT's common stock in connection with its initial
      public offering, grant the

                                       -3-

<PAGE>
      Executive 126,667 restricted shares of the REIT's common stock (the
      "Restricted Stock"). The Restricted Stock shall be granted to the
      Executive under the Company's 2004 Incentive Award Plan (the "Incentive
      Plan"). Subject to the Executive's continued employment with the Company,
      the Restricted Stock shall vest in three equal installments on January 1,
      2005, January 1, 2006 and January 1, 2007. Consistent with the foregoing,
      the terms and conditions of the Restricted Stock shall be set forth in a
      restricted stock agreement (the "Restricted Stock Agreement") to be
      entered into by the Company and the Executive which shall evidence the
      grant of the Restricted Stock.

            3.    Termination of Employment.

            (a)   Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death or Disability during the
Employment Period. For purposes of this Agreement, "Disability" shall mean the
absence of the Executive from the Executive's duties with the Company on a
full-time basis for ninety (90) consecutive days or on a total of one hundred
eighty (180) days in any twelve (12) month period, in either case as a result of
incapacity due to mental or physical illness which is determined to be total and
permanent by a physician selected by the Company and reasonably acceptable to
the Executive or the Executive's legal representative.

            (b)   Cause. The Company may terminate the Executive's employment
during the Employment Period for Cause or without Cause. For purposes of this
Agreement, "Cause" shall mean the occurrence of any one or more of the following
events unless the Executive fully corrects the circumstances constituting Cause
within thirty (30) days following the date written notice is delivered to the
Executive which specifically identifies the circumstances constituting Cause
(provided such circumstances are capable of correction):

                  (i)   the Executive's willful and continued failure
      substantially to perform his duties with the Company (other than any such
      failure resulting from the Executive's incapacity due to physical or
      mental illness), after a written demand for substantial performance is
      delivered to the Executive by the REIT's Board of Directors, which demand
      specifically identifies the manner in which the REIT's Board of Directors
      believes that the Executive has not substantially performed his duties;

                  (ii)  the Executive's willful commission of an act of fraud or
      dishonesty resulting in economic or financial damage to the Company;

                  (iii) the Executive's conviction of, or entry by the Executive
      of a guilty or no contest plea to, the commission of a felony or a crime
      involving moral turpitude;

                  (iv)  a willful breach by the Executive of his fiduciary duty
      to the Company which results in economic or other damage to the Company;
      or

                  (v)   the Executive's willful and material breach of the
      Executive's covenants set forth in Section 9(a) or 9(b) hereof.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or

                                       -4-

<PAGE>

without reasonable belief that the Executive's action or omission was in the
best interests of the Company. Any act, or failure to act, based upon authority
given pursuant to a resolution duly adopted by the REIT's Board of Directors or
based upon the advice of counsel for the Company shall be conclusively presumed
to be done, or omitted to be done, by the Executive in good faith and in the
best interests of the Company. The cessation of employment of the Executive
shall not be deemed to be for Cause unless and until there shall have been
delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than two-thirds of the entire membership of the
REIT's Board of Directors at a meeting of the REIT's Board of Directors called
and held for such purpose (after reasonable notice is provided to the Executive
and the Executive is given an opportunity, together with counsel for the
Executive, to be heard before the REIT's Board of Directors), finding that, in
the good faith opinion of the Board, the Executive is guilty of any of the
conduct described in Section 3(b), and specifying the particulars thereof in
detail; provided, that if the Executive is a member of the REIT's Board of
Directors, the Executive shall not vote on such resolution nor shall the
Executive be counted in determining the "entire membership" of the REIT's Board
of Directors.

            (c)   Good Reason. The Executive's employment may be terminated by
the Executive for Good Reason or by the Executive without Good Reason. For
purposes of this Agreement, "Good Reason" shall mean the occurrence of any one
or more of the following events without the Executive's prior written consent,
unless the Company fully corrects the circumstances constituting Good Reason
within thirty (30) days following the date written notice is delivered to the
REIT's Board of Directors by the Executive which specifically identifies the
circumstances constituting Good Reason (provided such circumstances are capable
of correction), after:

                  (i)   the assignment to the Executive of any duties materially
      inconsistent in any respect with the Executive's position (including
      status, offices, titles and reporting requirements), authority, duties or
      responsibilities as contemplated by Section 2(a) of this Agreement, or any
      other action by the Company which results in a material diminution in such
      position, authority, duties or responsibilities, excluding for this
      purpose an isolated, insubstantial and inadvertent action not taken in bad
      faith and which is remedied by the Company promptly after receipt of
      notice thereof given by the Executive;

                  (ii)  the Company's reduction of the Executive's annual Base
      Salary or Annual Bonus target, each as in effect on the date hereof or as
      the same may be increased from time to time (other than reductions in
      annual Base Salary or Annual Bonus target that generally affect all senior
      executives of the Company ratably);

                  (iii) the Company's material reduction of the Executive's
      benefits (other than reductions in benefits that generally affect all
      senior executives of the Company entitled to such benefits ratably);

                  (iv)  the relocation of the Company's offices at which the
      Executive is principally employed as of the Effective Date (the "Principal
      Location") to a location more than twenty-five (25) miles from such
      location, or the Company's requiring the Executive's principal place of
      employment to be at a location more than twenty-five (25) miles from the
      Principal

                                       -5-

<PAGE>

      Location, except for required travel on the Company's business to an
      extent substantially consistent with the Executive's present business
      travel obligations;

                  (v)   the Company's failure to obtain an agreement reasonably
      satisfactory to the Executive from any successor to assume and agree to
      perform this Agreement, as contemplated in Section 10 hereof; or

                  (vi)  the Company's material breach of this Agreement.

                  (d)   Notice of Termination. Any termination by the Company,
or by the Executive, shall be communicated by Notice of Termination to the other
parties hereto given in accordance with Section 13(c) of this Agreement. For
purposes of this Agreement, a "Notice of Termination" means a written notice
which (i) indicates the specific termination provision in this Agreement relied
upon, (ii) to the extent applicable, 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
(as defined below) is other than the date of receipt of such notice, specifies
the termination date (which date shall be not more than sixty (60) days after
the giving of such notice). The failure by the Executive or the Company to set
forth in the Notice of Termination any fact or circumstance which contributes to
a showing of Good Reason or Cause shall not waive any right of the Executive or
the Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive's or the Company's rights hereunder.

            (e)   Date of Termination. "Date of Termination" means (i) if the
Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date specified in the Notice of Termination
(which date shall not be prior to the expiration of the applicable correction
period and shall not be more than sixty (60) days after the giving of such
notice), as the case may be, (ii) if the Executive's employment is terminated by
the Company other than for Cause or Disability, the Date of Termination shall be
the date on which the Company notifies the Executive of such termination (or
such other date specified by the Company, which date shall not be more than
sixty (60) days after the giving of such notice), (iii) if the Executive's
employment is terminated by the Executive without Good Reason, the Date of
Termination shall be the thirtieth (30th) day after the date on which the
Executive notifies the Company of such termination, unless otherwise agreed by
the Company and the Executive, and (iv) if the Executive's employment is
terminated by reason of death or Disability, the Date of Termination shall be
the date of death or Disability of the Executive, as the case may be.

            4.    Obligations of the Company upon Termination.

            (a)   Without Cause or For Good Reason. If, during the Employment
Period, the Company shall terminate the Executive's employment without Cause or
the Executive shall terminate his employment for Good Reason:

                                       -6-

<PAGE>

                  (i)   The Executive shall be paid the aggregate amount of

                        (A)   the Executive's earned but unpaid Base Salary and
            accrued but unpaid vacation pay through the Date of Termination, and
            any Annual Bonus required to be paid to the Executive pursuant to
            Section 2(b)(ii) above for any fiscal year of the Company that ends
            on or before the Date of Termination to the extent not previously
            paid (the "Accrued Obligations"), and

                        (B)   (I) the sum of (x) the Base Salary in effect on
            the Date of Termination plus (y) the average Annual Bonus received
            by the Executive for the three (3) complete fiscal years (or such
            lesser number of years as the Executive has been employed by the
            Company) of the Company immediately prior to the Date of
            Termination, multiplied by (II) three (3) (such amount determined
            under this clause (B) payable to the Executive, the "Severance
            Amount").

                        The Severance Amount shall be paid to the Executive as
            follows: (A) 50% of the Severance Amount shall be paid in a single
            lump sum payment within sixty (60) days after the Date of
            Termination and (B) the remaining 50% of the Severance Amount shall
            be paid in equal monthly installments over two (2) years; provided,
            however, that if the Executive's employment is terminated by the
            Company without Cause or by the Executive for Good Reason, in each
            case within one (1) year after the effective date of a Change in
            Control (as defined below), then the Severance Amount shall be paid
            in a single lump sum payment within ten (10) days following the Date
            of Termination;

                  (ii)  For a period of eighteen (18) months following the Date
      of Termination, the Company shall continue to provide the Executive and
      the Executive's eligible family members with group health insurance
      coverage at least equal to that which would have been provided to them if
      the Executive's employment had not been terminated under the terms and
      conditions of the applicable plans; provided, however, that if the
      Executive becomes re-employed with another employer and is eligible to
      receive group health insurance coverage under another employer's plans,
      the Company's obligations under this Section 4(a)(ii) shall be terminated
      to the extent comparable coverage is actually provided to the Executive
      and the Executive's eligible family members, and any such coverage shall
      be reported by the Executive to the Company;

                  (iii) For a period of twelve (12) months following the Date of
      Termination, the Company shall continue to pay the premiums for the
      long-term disability and life insurance coverage described in Sections
      2(b)(iv) and 2(b)(viii); provided, however, that if the Executive becomes
      re-employed with another employer and receives long-term disability and
      life coverage under another employer's plans, the Company's obligations
      under this Section 4(a)(iii) shall be terminated to the extent comparable
      coverage is actually provided to the Executive, and any such coverage
      shall be reported by the Executive to the Company; and

                                       -7-

<PAGE>

                  (iv)  The Company shall, at its sole expense and on an
      as-incurred basis, provide the Executive with up to $15,000 towards
      outplacement services the scope and provider of which shall be reasonable
      and consistent with industry practice for similarly situated executives;

                  (v)   To the extent not theretofore paid or provided, the
      Company shall timely pay or provide to the Executive any vested benefits
      and other amounts or benefits required to be paid or provided or which the
      Executive is eligible to receive under any plan, program, policy or
      practice or contract or agreement of the Company and its affiliates (such
      other amounts and benefits shall be hereinafter referred to as the "Other
      Benefits"); and

                  (vi)  On the Date of Termination, 100% of the outstanding
      unvested stock options, restricted stock and other equity awards granted
      to the Executive under any of the Company's equity incentive plans (or
      awards substituted therefore covering the securities of a successor
      company) shall become immediately vested and exercisable in full.

If the Company provides the Executive with its election not to extend the
Employment Period pursuant to Section 1(a) above during the initial Employment
Period or the first or second Renewal Years, the Executive shall be entitled to
receive the severance benefits described in Sections 4(a)(i) through (vi) above
effective as of the last day of the Employment Period.

Notwithstanding the foregoing, it shall be a condition to the Executive's right
to receive the amounts provided for in Sections 4(a)(i)(B) and 4(a)(ii), (iii)
and (iv) above that the Executive execute, deliver to the Company and not revoke
a release of claims in substantially the form attached hereto as Exhibit A.

            (b)   For Cause or Without Good Reason. If the Executive's
employment shall be terminated by the Company for Cause or by the Executive
without Good Reason during the Employment Period, the Company shall have no
further obligations to the Executive under this Agreement other than pursuant to
Sections 7 and 8 hereof, and the obligation to pay to the Executive the Accrued
Obligations in cash within thirty (30) days after the Date of Termination and to
provide the Other Benefits.

            (c)   Death or Disability. If the Executive's employment is
terminated by reason of the Executive's death or Disability during the
Employment Period:

                  (i)   The Accrued Obligations shall be paid to the Executive's
      estate or beneficiaries or to the Executive, as applicable, in cash within
      thirty (30) days of the Date of Termination;

                  (ii)  100% of the Executive's annual Base Salary, as in effect
      on the Date of Termination, shall be paid to the Executive's estate or
      beneficiaries or to the Executive, as applicable, in cash within thirty
      (30) days following the Date of Termination;

                                       -8-

<PAGE>

                  (iii) For a period of twelve (12) months following the Date of
      Termination, the Executive and the Executive's eligible family members
      shall continue to be provided with group health insurance coverage at
      least equal to that which would have been provided to them if the
      Executive's employment had not been terminated;

                  (iv)  In the event the Executive's employment is terminated by
      reason of the Executive's Disability, for a period of twelve (12) months
      following the Date of Termination, the Company shall continue to pay the
      premiums for the long-term disability and life insurance coverage
      described in Sections 2(b)(iv) and 2(b)(viii); and

                  (v)   The Other Benefits shall be paid or provided to the
      Executive on a timely basis.

            5.    Definition of Change in Control. For purposes of this
Agreement, "Change in Control" shall mean the occurrence of any of the following
events:

                  (a)   A transaction or series of transactions (other than an
      offering of the Company's common stock to the general public through a
      registration statement filed with the Securities and Exchange Commission)
      whereby any "person" or related "group" of "persons" (as such terms are
      used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the
      Company, any of its subsidiaries, an employee benefit plan maintained by
      the Company or any of its subsidiaries or a "person" that, prior to such
      transaction, directly or indirectly controls, is controlled by, or is
      under common control with, the Company) directly or indirectly acquires
      beneficial ownership (within the meaning of Rule 13d-3 under the Exchange
      Act) of securities of the Company possessing more than 50% of the total
      combined voting power of the Company's securities outstanding immediately
      after such acquisition; or

                  (b)   individuals who, as of the Effective Date, constitute
      the REIT's Board of Directors (the "Incumbent Board") cease for any reason
      to constitute at least a majority of the REIT's Board of Directors;
      provided, however, that any individual becoming a director subsequent to
      the Effective Date whose election by the REIT's shareholders, or
      nomination for election by the REIT's Board of Directors, was approved by
      a vote of at least a majority of the directors then comprising the
      Incumbent Board shall be considered as though such individual were a
      member of the Incumbent Board, but excluding, for this purpose, any such
      individual whose initial assumption of office occurs as a result of an
      election contest with respect to the election or removal of directors or
      other solicitation of proxies or consents by or on behalf of a person
      other than the REIT's Board of Directors;

                  (c)   the consummation by the REIT (whether directly involving
      the REIT or indirectly involving the REIT through one or more
      intermediaries) of (x) a

                                       -9-

<PAGE>

      merger, consolidation, reorganization, or business combination or (y) a
      sale or other disposition of all or substantially all of the REIT's assets
      or (z) the acquisition of assets or stock of another entity, in each case,
      other than a transaction

                        (A)   which results in the REIT's voting securities
            outstanding immediately before the transaction continuing to
            represent (either by remaining outstanding or by being converted
            into voting securities of the REIT or the person that, as a result
            of the transaction, controls, directly or indirectly, the REIT or
            owns, directly or indirectly, all or substantially all of the REIT's
            assets or otherwise succeeds to the business of the REIT (the REIT
            or such person, the "Successor Entity")) directly or indirectly, at
            least 50% of the combined voting power of the Successor Entity's
            outstanding voting securities immediately after the transaction, and

                        (B)   after which no person or group beneficially owns
            voting securities representing 50% or more of the combined voting
            power of the Successor Entity; provided, however, that no person or
            group shall be treated for purposes of this clause (B) as
            beneficially owning 50% or more of combined voting power of the
            Successor Entity solely as a result of the voting power held in the
            REIT prior to the consummation of the transaction; or

                  (d)   approval by the REIT's shareholders of a liquidation or
      dissolution of the REIT.

            6.    Non-exclusivity of Rights. Nothing in this Agreement shall
prevent or limit the Executive's continuing or future participation in any plan,
program, policy or practice provided by the Company and for which the Executive
may qualify, nor shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company. Amounts
which are vested benefits or which the Executive is otherwise entitled to
receive under any plan, policy, practice or program of or any contract or
agreement with the Company at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement except as explicitly modified by this Agreement.

            7.    Full Settlement. The Company's obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others. In no event shall the Executive 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 and except as
expressly provided, such amounts shall not be reduced whether or not the
Executive obtains other employment. The Company agrees to pay as incurred
(within 30 days following the Company's receipt of an invoice from the
Executive), to the full extent permitted by law, all reasonable legal fees and
expenses which the Executive or his beneficiaries may reasonably incur as a
result of any contest (regardless of the outcome thereof) by the Company, the
Executive or others of the validity or enforceability of, or liability under,
any provision of this Agreement or any guarantee of performance thereof
(including as a result of any contest by the Executive or his beneficiaries
about the amount of any payment pursuant to this Agreement), plus in each case
interest on any

                                      -10-

<PAGE>

delayed payment at the applicable Federal rate provided for in Section
7872(f)(2)(A) of the Code. The preceding sentence shall not apply with respect
to any such contest if the court having jurisdiction over such contest
determines that the Executive's claim in such contest is frivolous or maintained
in bad faith.

            8.    Certain Additional Payments by the Company.

            (a)   Anything in this Agreement to the contrary notwithstanding and
except as set forth below, in the event it shall be determined that any Payment
would be subject to the Excise Tax, then the Executive shall be entitled to
receive an additional payment (the "Excise Tax Gross-Up Payment") in an amount
such that, after payment by the Executive of all taxes (and any interest or
penalties imposed with respect to such taxes), including, without limitation,
any income taxes (and any interest and penalties imposed with respect thereto)
and Excise Tax imposed upon the Excise Tax Gross-Up Payment, the Executive
retains an amount of the Excise Tax Gross-Up Payment equal to the Excise Tax
imposed upon the Payments. Notwithstanding the foregoing provisions of this
Section 8(a), if it shall be determined that the Executive is entitled to the
Excise Tax Gross-Up Payment, but that the Parachute Value of all Payments does
not exceed 110% of the Safe Harbor Amount, then no Excise Tax Gross-Up Payment
shall be made to the Executive and the amounts payable under this Agreement
shall be reduced so that the Parachute Value of all Payments, in the aggregate,
equals the Safe Harbor Amount. The reduction of the amounts payable hereunder,
if applicable, shall be made by first reducing the payments under Section
4(a)(i), unless an alternative method of reduction is elected by the Executive,
and in any event shall be made in such a manner as to maximize the Value of all
Payments actually made to the Executive. For purposes of reducing the Payments
to the Safe Harbor Amount, only amounts payable under this Agreement (and no
other Payments) shall be reduced. If the reduction of the amount payable under
this Agreement would not result in a reduction of the Parachute Value of all
Payments to the Safe Harbor Amount, no amounts payable under the Agreement shall
be reduced pursuant to this Section 8(a). The Company's obligation to make
Excise Tax Gross-Up Payments under this Section 8 shall not be conditioned upon
the Executive's termination of employment.

            (b)   Subject to the provisions of Section 8(c), all determinations
required to be made under this Section 8, including whether and when an Excise
Tax Gross-Up Payment is required, the amount of such Excise Tax Gross-Up Payment
and the assumptions to be utilized in arriving at such determination, shall be
made by such nationally recognized accounting firm as may be selected by the
Company and reasonably acceptable to the Executive (the "Accounting Firm");
provided, that the Accounting Firm's determination shall be made based upon
"substantial authority" within the meaning of Section 6662 of the Code. The
Accounting Firm shall provide detailed supporting calculations both to the
Company and the Executive within fifteen (15) business days of the receipt of
notice from the Executive that there has been a Payment or such earlier time as
is requested by the Company. All fees and expenses of the Accounting Firm shall
be borne solely by the Company. Any Excise Tax Gross-Up Payment, as determined
pursuant to this Section 8, shall be paid by the Company to the Executive within
five (5) days of the receipt of the Accounting Firm's determination. Any
determination by the Accounting Firm shall be binding upon the Company and the
Executive, unless the Company obtains an opinion of outside legal counsel, based
upon at least "substantial authority" within the meaning of Section 6662 of the
Code, reaching a different determination, in which event such

                                      -11-

<PAGE>

legal opinion shall be binding upon the Company and the Executive. As a result
of the uncertainty in the application of Section 4999 of the Code at the time of
the initial determination by the Accounting Firm hereunder, it is possible that
Excise Tax Gross-Up Payments that will not have been made by the Company should
have been made (the "Underpayment"), consistent with the calculations required
to be made hereunder. In the event the Company exhausts its remedies pursuant to
Section 8(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

            (c)   The Executive shall notify the Company in writing of any claim
by the Internal Revenue Service that, if successful, would require the payment
by the Company of the Excise Tax Gross-Up Payment. Such notification shall be
given as soon as practicable, but no later than ten (10) business days after the
Executive is informed in writing of such claim. The Executive shall apprise the
Company of the nature of such claim and the date on which such claim is
requested to be paid. The Executive shall not pay such claim prior to the
expiration of the thirty (30) day period following the date on which the
Executive gives such notice to the Company (or such shorter period ending on the
date that any payment of taxes with respect to such claim is due). If the
Company notifies the Executive in writing prior to the expiration of such period
that the Company desires to contest such claim, the Executive shall:

                  (i)   give the Company any information reasonably requested by
      the Company relating to such claim,

                  (ii)  take such action in connection with contesting such
      claim as the Company shall reasonably request in writing from time to
      time, including, without limitation, accepting legal representation with
      respect to such claim by an attorney reasonably selected by the Company,

                  (iii) cooperate with the Company in good faith in order
      effectively to contest such claim, and

                  (iv)  permit the Company to participate in any proceedings
      relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest, and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 8(c),
the Company shall control all proceedings taken in connection with such contest,
and, at its sole discretion, may pursue or forgo any and all administrative
appeals, proceedings, hearings and conferences with the applicable taxing
authority in respect of such claim and may, at its sole discretion, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that, if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the

                                      -12-

<PAGE>

amount of such payment to the Executive, on an interest-free basis, and shall
indemnify and hold the Executive harmless, on an after-tax basis, from any
Excise Tax or income tax (including interest or penalties) imposed with respect
to such advance or with respect to any imputed income in connection with such
advance; and provided, further, that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. Furthermore, the Company's control of the contest shall be
limited to issues with respect to which the Excise Tax Gross-Up Payment would be
payable hereunder, and the Executive shall be entitled to settle or contest, as
the case may be, any other issue raised by the Internal Revenue Service or any
other taxing authority.

            (d)   If, after the receipt by the Executive of an Excise Tax
Gross-Up Payment or an amount advanced by the Company pursuant to Section 8(c),
the Executive becomes entitled to receive any refund with respect to the Excise
Tax to which such Excise Tax Gross-Up Payment relates or with respect to such
claim, the Executive shall (subject to the Company's complying with the
requirements of Section 8(c), if applicable) promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon after
taxes applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 8(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim and
the Company does not notify the Executive in writing of its intent to contest
such denial of refund prior to the expiration of thirty (30) days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Excise Tax Gross-Up Payment required to be paid.

            (e)   Notwithstanding any other provision of this Section 8, the
Company may, in its sole discretion, withhold and pay over to the Internal
Revenue Service or any other applicable taxing authority, for the benefit of the
Executive, all or any portion of any Excise Tax Gross-Up Payment, and the
Executive hereby consents to such withholding.

            (f)   Any other liability for unpaid or unwithheld Excise Taxes
shall be borne exclusively by the Company, in accordance with Section 3403 of
the Code. The foregoing sentence shall not in any manner relieve the Company of
any of its obligations under this Employment Agreement.

            (g)   Definitions. The following terms shall have the following
meanings for purposes of this Section 8:

                  (i)   "Excise Tax" shall mean the excise tax imposed by
      Section 4999 of the Code, together with any interest or penalties imposed
      with respect to such excise tax.

                  (ii)  "Parachute Value" of a Payment shall mean the present
      value as of the date of the change of control for purposes of Section 280G
      of the Code of the portion of such Payment that constitutes a "parachute
      payment" under Section 280G(b)(2), as determined by the Accounting Firm
      for purposes of determining whether and to what extent the Excise Tax will
      apply to such Payment.

                                      -13-

<PAGE>

                  (iii) A "Payment" shall mean any payment or distribution in
      the nature of compensation (within the meaning of Section 280G(b)(2) of
      the Code) to or for the benefit of the Executive, whether paid or payable
      pursuant to this Agreement or otherwise.

                  (iv)  The "Safe Harbor Amount" shall mean 2.99 times the
      Executive's "base amount," within the meaning of Section 280G(b)(3) of the
      Code.

                  (v)   "Value" of a Payment shall mean the economic present
      value of a Payment as of the date of the change of control for purposes of
      Section 280G of the Code, as determined by the Accounting Firm using the
      discount rate required by Section 280G(d)(4) of the Code.

            9.    Confidential Information and Non-Solicitation.

            (a)   The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data
relating to the REIT, the Operating Partnership and their respective
subsidiaries and affiliates (collectively, the "REIT Group"), and each of their
respective businesses, which shall have been obtained by the Executive during
the Executive's employment by the Company and which shall not be or become
public knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement). After termination of the Executive's
employment with the Company, the Executive shall not, without the prior written
consent of the Company or as may otherwise be required by law or legal process,
communicate or divulge any such information, knowledge or data to anyone other
than the Company and those designated by it; provided, that if the Executive
receives actual notice that the Executive is or may be required by law or legal
process to communicate or divulge any such information, knowledge or data, the
Executive shall promptly so notify the Company.

            (b)   While employed by the Company and, during any period following
the Date of Termination during which the Executive is receiving payments from
the Company, the Executive shall not directly or indirectly solicit, induce, or
encourage any employee, consultant, agent, customer, vendor, or other parties
doing business with any member of the REIT Group to terminate their employment,
agency, or other relationship with the REIT Group or such member or to render
services for or transfer their business from the REIT Group or such member and
the Executive shall not initiate discussion with any such person for any such
purpose or authorize or knowingly cooperate with the taking of any such actions
by any other individual or entity.

            (c)   In no event shall an asserted violation of the provisions of
this Section 9 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement. However, in recognition
of the facts that irreparable injury will result to the Company in the event of
a breach by the Executive of his obligations under Sections 9(a) and (b) of this
Agreement, that monetary damages for such breach would not be readily
calculable, and that the Company would not have an adequate remedy at law
therefor, the Executive acknowledges, consents and agrees that in the event of
such breach, or the threat thereof, the Company shall be entitled, in addition
to any other legal remedies and damages available, to specific performance
thereof and to temporary and permanent injunctive relief (without the

                                      -14-

<PAGE>

necessity of posting a bond) to restrain the violation or threatened violation
of such obligations by the Executive.

            (d)   This Section 9 shall survive termination of the Employment
Period or any expiration or termination of this Agreement.

            10.   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.

            (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 and/or assets of the Company to assume 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 had taken
place. As used in this Agreement, "Company" shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

            11.   Payment of Financial Obligations. The payment or provision to
the Executive by the Company of any remuneration, benefits or other financial
obligations pursuant to this Agreement shall be allocated to the Operating
Partnership, the REIT and, if applicable, any subsidiary and/or affiliate
thereof in accordance with any agreements to such effect by and between the REIT
and the Operating Partnership, as in effect from time to time.

            12.   Indemnification. The Company and the Executive have entered
into an Indemnification Agreement substantially in the form filed as Exhibit
10.4 to the Company's Registration Statement on Form S-11.

                                      -15-

<PAGE>

            13.   Miscellaneous.

            (a)   Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of California, 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 may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

            (b)   Arbitration. Except as set forth in Section 9(c) above, any
disagreement, dispute, controversy or claim arising out of or relating to this
Agreement or the interpretation of this Agreement or any arrangements relating
to this Agreement or contemplated in this Agreement or the breach, termination
or invalidity thereof shall be settled by final and binding arbitration
administered by JAMS/Endispute in San Diego, California in accordance with the
then existing JAMS/Endispute Arbitration Rules and Procedures for Employment
Disputes. In the event of such an arbitration proceeding, the Executive and the
Company shall select a mutually acceptable neutral arbitrator from among the
JAMS/Endispute panel of arbitrators. In the event the Executive and the Company
cannot agree on an arbitrator, the Administrator of JAMS/Endispute will appoint
an arbitrator. Neither the Executive nor the Company nor the arbitrator shall
disclose the existence, content, or results of any arbitration hereunder without
the prior written consent of all parties. Except as provided herein, the Federal
Arbitration Act shall govern the interpretation, enforcement and all
proceedings. The arbitrator shall apply the substantive law (and the law of
remedies, if applicable) of the state of California, or federal law, or both, as
applicable, and the arbitrator is without jurisdiction to apply any different
substantive law. The arbitrator shall have the authority to entertain a motion
to dismiss and/or a motion for summary judgment by any party and shall apply the
standards governing such motions under the Federal Rules of Civil Procedure. The
arbitrator shall render an award and a written, reasoned opinion in support
thereof. Judgment upon the award may be entered in any court having jurisdiction
thereof. The Company will pay the direct costs and expenses of the arbitration.
The Executive and the Company shall be responsible for their respective
attorneys' fees incurred in connection with enforcing this Agreement; provided,
however, the Executive and the Company agree that, except as may be prohibited
by law, the arbitrator may, in his or her discretion, award reasonable
attorneys' fees to the prevailing party. This Section 13(b) shall not apply to
the Company's right to enforce the Executive's obligations under Section 9 to
the extent the Company is entitled to seek specific performance thereunder.

            (c)   Notices. All notices and other communications hereunder 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,
addressed as follows:

            If to the Executive: at the Executive's most recent address on the
records of the Company,

                                      -16-

<PAGE>

            If to the REIT or the Operating Partnership:

            BioMed Realty Trust, Inc.
            BioMed Realty, L.P.
            17140 Bernardo Center Drive
            Suite 195
            San Diego, California 92128

            with a copy to:

            Craig M. Garner, Esq.
            Latham & Watkins LLP
            12636 High Bluff Drive
            Suite 300
            San Diego, California 92130

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

            (d)   Sarbanes-Oxley Act of 2002. Notwithstanding anything herein to
the contrary, if the Company determines, in its good faith judgment, that any
transfer or deemed transfer of funds hereunder is likely to be construed as a
personal loan prohibited by Section 13(k) of the Exchange Act and the rules and
regulations promulgated thereunder, then such transfer or deemed transfer shall
not be made to the extent necessary or appropriate so as not to violate the
Exchange Act and the rules and regulations promulgated thereunder.

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

            (f)   Withholding. The Company may withhold from any amounts payable
under this Agreement such Federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation. In
addition, notwithstanding any other provision of this Agreement, the Company
may, in its sole discretion, withhold and pay over to the Internal Revenue
Service or any other applicable taxing authority, for the benefit of the
Executive, all or any portion of any Excise Tax Gross-Up Payment, and the
Executive hereby consents to such withholding.

            (g)   No Waiver. The Executive's or the Company's failure to insist
upon strict compliance with any provision of this Agreement or the failure to
assert any right the Executive or the Company may have hereunder, including,
without limitation, the right of the Executive to terminate employment for Good
Reason pursuant to Section 3(c) of this Agreement, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement.

            (h)   Survival. Provisions of this Agreement shall survive any
termination of the Employment Period if so provided herein or if necessary or
desirable to fully accomplish the

                                      -17-

<PAGE>

purposes of such provision, including, without limitation, the Executive's
obligations under Section 9 hereof. The obligation of the Company to make
payments to or on behalf of the Executive under Section 4 or 5 hereof is
expressly conditioned upon the Executive's continued full performance of his
obligations under Section 9 hereof. The Executive recognizes that, except as
expressly provided in Section 4 or 5, no compensation is earned after
termination of the Employment Period.

            (i)   Entire Agreement. As of the Effective Date, this Agreement,
together with any restricted stock agreements between the parties, constitutes
the final, complete and exclusive agreement between the Executive and the
Company with respect to the subject matter hereof and replaces and supersedes
any and all other agreements, offers or promises, whether oral or written, made
to you by any member of the REIT Group or any entity (a "Predecessor Employer"),
or representative thereof, whose business or assets any member of the REIT Group
succeeded to in connection with the initial public offering of the common stock
of the REIT or the transactions related thereto. The Executive agrees that any
such agreement, offer or promise between the Executive and a Predecessor
Employer (or any representative thereof) is hereby terminated and will be of no
further force or effect, and the Executive acknowledges and agrees that upon his
execution of this Agreement, he will have no right or interest in or with
respect to any such agreement, offer or promise. In the event that the Effective
Date does not occur, this Agreement (including, without limitation, the
immediately preceding sentence) shall have no force or effect.

            (j)   Counterparts. This Agreement may be executed simultaneously in
two counterparts, each of which shall be deemed an original but which together
shall constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                      -18-

<PAGE>

            IN WITNESS WHEREOF, the Executive has hereunto set the Executive's
hand and, pursuant to the authorization from the REIT's Board of Directors, the
Company has caused these presents to be executed in its name on its behalf, all
as of the day and year first above written.

                                        BIOMED REALTY TRUST, INC.

                                        By: /s/ JOHN F. WILSON
                                           --------------------------
                                           Name: John F. Wilson
                                           Title: Chief Financial Officer

                                        BIOMED REALTY, L.P.

                                        By: BioMed Realty Trust, Inc.,
                                            its general partner

                                            By: /s/ JOHN F. WILSON
                                               ----------------------
                                               Name: John F. Wilson
                                               Title: Chief Financial Officer

                                        EXECUTIVE

                                              /s/ ALAN D. GOLD
                                             ------------------------
                                              Alan D. Gold

<PAGE>

                                                                       EXHIBIT A

                                 GENERAL RELEASE

            For a valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the undersigned does hereby release and forever discharge
the "Releasees" hereunder, consisting of BioMed Realty Trust, Inc., BioMed
Realty, L.P., and each of their partners, subsidiaries, associates, affiliates,
successors, heirs, assigns, agents, directors, officers, employees,
representatives, lawyers, insurers, and all persons acting by, through, under or
in concert with them, or any of them, of and from any and all manner of action
or actions, cause or causes of action, in law or in equity, suits, debts, liens,
contracts, agreements, promises, liability, claims, demands, damages, losses,
costs, attorneys' fees or expenses, of any nature whatsoever, known or unknown,
fixed or contingent (hereinafter called "Claims"), which the undersigned now has
or may hereafter have against the Releasees, or any of them, by reason of any
matter, cause, or thing whatsoever from the beginning of time to the date
hereof. The Claims released herein include, without limiting the generality of
the foregoing, any Claims in any way arising out of, based upon, or related to
the employment or termination of employment of the undersigned by the Releasees,
or any of them; any alleged breach of any express or implied contract of
employment; any alleged torts or other alleged legal restrictions on Releasee's
right to terminate the employment of the undersigned; and any alleged violation
of any federal, state or local statute or ordinance including, without
limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In
Employment Act, the Americans With Disabilities Act, and the California Fair
Employment and Housing Act.

            THE UNDERSIGNED ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY LEGAL
COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION
1542, WHICH PROVIDES AS FOLLOWS:

            "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
      NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
      RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
      SETTLEMENT WITH THE DEBTOR."

THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY
RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW
PRINCIPLES OF SIMILAR EFFECT.

            IN ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990,
THE UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:

            (A)   HE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING
      THIS RELEASE;

            (B)   HE HAS TWENTY-ONE (21) DAYS TO CONSIDER THIS RELEASE BEFORE
      SIGNING IT; AND

<PAGE>

            (C)   HE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE
      THIS RELEASE, AND THIS RELEASE WILL BECOME EFFECTIVE UPON THE EXPIRATION
      OF THAT REVOCATION PERIOD.

            The undersigned represents and warrants that there has been no
assignment or other transfer of any interest in any Claim which he may have
against Releasees, or any of them, and the undersigned agrees to indemnify and
hold Releasees, and each of them, harmless from any liability, Claims, demands,
damages, costs, expenses and attorneys' fees incurred by Releasees, or any of
them, as the result of any such assignment or transfer or any rights or Claims
under any such assignment or transfer. It is the intention of the parties that
this indemnity does not require payment as a condition precedent to recovery by
the Releasees against the undersigned under this indemnity.

            The undersigned agrees that if he hereafter commences any suit
arising out of, based upon, or relating to any of the Claims released hereunder
or in any manner asserts against Releasees, or any of them, any of the Claims
released hereunder, then the undersigned agrees to pay to Releasees, and each of
them, in addition to any other damages caused to Releasees thereby, all
attorneys' fees incurred by Releasees in defending or otherwise responding to
said suit or Claim.

            The undersigned further understands and agrees that neither the
payment of any sum of money nor the execution of this Release shall constitute
or be construed as an admission of any liability whatsoever by the Releasees, or
any of them, who have consistently taken the position that they have no
liability whatsoever to the undersigned.

            IN WITNESS WHEREOF, the undersigned has executed this Release this
____ day of ___________, _____.

                                                 _______________________________
                                                 Alan D. Gold

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