Document:

Ex-10.13

 

EXHIBIT 10.13

Healthcare Realty Trust

Incorporated

Employment Agreement

     This Employment Agreement (the “Agreement”) is made and entered into as of January 1,
2007 (“Effective Date”) by and between Healthcare Realty Trust Incorporated, a Maryland
corporation (“Corporation”), and B. Douglas Whitman  (“Officer”).

Recital

     Corporation desires to employ Officer as its Senior Vice President — Real Estate Investments
and Officer is willing to accept such employment by Corporation, on the terms and subject to the
conditions set forth in this Agreement.

Agreement

     The Parties Agree As Follows:

     1. Duties. During the term of this Agreement, Officer agrees to be employed by and to
serve Corporation as its Senior Vice President — Real Estate Investments and Corporation agrees to
employ and retain Officer in such capacity. Officer’s duties shall be to manage and supervise
Corporation’s real estate investment department in furtherance of the overall financial success of
the Corporation. Officer shall devote such of his business time, energy, and skill to the affairs
of Corporation as shall be necessary to perform his duties under this Agreement. Officer shall
report to Corporation’s Board of Directors and/or Chief Executive Officer and at all times during
the term of this Agreement shall have powers and duties at least commensurate with his position as
Senior Vice President — Real Estate Investments. Officer’s principal place of business with
respect to his services to Corporation shall be within 35 miles of Nashville, Tennessee.

     2. Term of Employment.

          2.1 Definitions. For purposes of this Agreement the following terms shall have the
following meanings:

     (a) “Termination For Cause” shall mean termination by Corporation of Officer’s
employment by Corporation by reason of Officer’s dishonesty towards, fraud upon, or deliberate
injury or attempted injury to, Corporation or by reason of Officer’s breach of this Agreement.
Corporation shall have the burden of establishing that any termination of Officer’s employment by
Corporation is a Termination For Cause.

     (b) “Termination Other Than For Cause” shall mean any termination by Corporation of
Officer’s employment by Corporation (other than a Termination For Cause) and shall include a
Constructive Termination of Officer’s

 

employment, effective upon notice from Officer to Corporation of such Constructive
Termination.

     (c) “Voluntary Termination” shall mean termination by Officer of Officer’s employment
by Corporation other than (i) a Constructive Termination as described in subsection 2.1(g), (ii)
“Termination Upon a Change in Control” as described in Section 2.1(d), (iii) termination by reason
of Officer’s death or disability as described in Sections 2.5 and 2.6, and (iv) termination by
reason of retirement by Officer upon attainment of Retirement Eligibility.

     (d) “Termination Upon a Change in Control” shall mean a termination by Officer of
Officer’s employment with Corporation within 24 months following a “Change in Control.”

     (e) “Change in Control” shall mean (i) the time that Corporation first determines that
any person and all other persons who constitute a group (within the meaning of Section 13(d)(3) of
the Securities Exchange Act of 1934 (“Exchange Act”)) have acquired direct or indirect beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of 20 percent or more of
Corporation’s outstanding securities, unless a majority of the “Continuing Directors” approves the
acquisition not later than ten business days after Corporation makes that determination, or (ii)
the first day on which a majority of the members of Corporation’s Board of Directors are not
“Continuing Directors.”

     (f) “Continuing Directors” shall mean, as of any date of determination, any member of
the Board of Directors of Corporation who (i) was a member of that Board of Directors on January l,
2007, (ii) has been a member of that Board of Directors for the two years immediately preceding
such date of determination, or (iii) was nominated for election or elected to the Board of
Directors with the affirmative vote of the greater of (x) a majority of Continuing Directors who
were members of the Board at the time of such nomination or election or (y) at least four
Continuing Directors.

     (g) “Constructive Termination” shall mean (i) any material breach of this Agreement by
Corporation, (ii) any substantial reduction in the authority or responsibility of Officer or other
substantial reduction in the terms and conditions of Officer’s employment under circumstances which
would not justify a Termination For Cause and which are not the result of a breach by Officer of
this Agreement, (iii) any act(s) by Corporation which are designed to or have the effect of
rendering Officer’s working conditions so intolerable or demeaning on a recurring basis that a
reasonable person would resign such employment, or (iv) relocation of Officer to a location that is
more than 35 miles from the location of Corporation’s headquarters on the date this Agreement is
executed.

     (h) “Deferred Compensation” or “deferred compensation” shall mean any individual or
group plan, program, agreement or other arrangement, whether or not a “plan” for purposes of the
Employee Retirement Income Security Act of 1974 (“ERISA”) and whether or not a retirement plan or
supplemental executive retirement plan or additional retirement plan, but which in any event
involves an agreement by Corporation to make payment(s) to Officer at a future date as compensation
for current services to Corporation. The term Deferred Compensation or deferred compensation shall
include, but not be limited to, benefits described in any Incentive Plan, and any

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implementation thereof or incentive award thereunder, each as it now exists or may hereafter
be amended.

     (i) “Incentive Plans” shall mean Corporation’s 2003 Employees Restricted Stock
Incentive Plan, and any successor plans.

     (j) “Retirement Eligibility” shall mean Employee’s attainment of 60 years of age and
ten years of continuous employment with Corporation.

          2.2 Basic Term. The term of employment of Officer by Corporation shall be from January
1, 2007 through December 31, 2007, unless terminated earlier pursuant to this Section 2.
Commencing in 2008, on the first day of January of each year, the first sentence of this Section
2.2 shall be amended by deleting each year then appearing therein and inserting in each place the
next subsequent year.

          2.3 Termination For Cause. Termination For Cause may be effected by Corporation at any
time during the term of this Agreement and shall be effected by written notification to Officer.
Upon Termination For Cause, Officer immediately shall be paid all accrued salary, bonus
compensation, if any, to the extent earned, vested deferred compensation (other than pension plan
or profit sharing plan benefits which will be paid in accordance with the applicable plan), any
benefits under any plans of Corporation in which Officer is a participant to the full extent of
Officer’s rights under such plans, accrued vacation pay and any appropriate business expenses
incurred by Officer in connection with his duties hereunder, all to the date of termination, but
Officer shall not be paid any other compensation or reimbursement of any kind, including without
limitation, severance compensation.

          2.4 Termination Other Than For Cause. Notwithstanding anything else in this Agreement,
Corporation may effect a Termination Other Than For Cause at any time upon giving written notice to
Officer of such termination. Upon any Termination Other Than For Cause, Officer shall immediately
be paid all accrued salary, bonus compensation, if any, to the extent earned, whether or not vested
without regard to such Termination (other than pension plan or profit sharing plan benefits which
will be paid in accordance with the applicable plan), any benefits under any plans of Corporation
in which Officer is a participant to the full extent of Officer’s rights under such plans
(including accelerated release and full vesting of shares reserved for Officer under the Incentive
Plans, and any implementation thereof or incentive award thereunder), accrued vacation pay and any
appropriate business expenses incurred by Officer in connection with his duties hereunder, all to
the date of termination, and all severance compensation provided in Section 4.2, but no other
compensation or reimbursement of any kind.

          2.5 Termination by Reason of Disability. If, during the term of this Agreement,
Officer, in the reasonable judgment of the Board of Directors of Corporation, has failed to perform
his duties under this Agreement on account of illness or physical or mental incapacity, and such
illness or incapacity continues for a period of more than 12 consecutive months, Corporation shall
have the right to terminate Officer’s employment hereunder by written notification to Officer and
payment to Officer of all accrued salary, bonus compensation, if any, to the extent earned,
deferred compensation, whether or not vested without regard to such illness or incapacity (other
than pension plan or profit

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sharing plan benefits which will be paid in accordance with the applicable plan), any benefits
under any plans of Corporation in which Officer is a participant to the full extent of Officer’s
rights under such plans (including accelerated release and full vesting of shares reserved for
Officer under the Incentive Plans, and any implementation thereof or incentive award thereunder),
accrued vacation pay and any appropriate business expenses incurred by Officer in connection with
his duties hereunder, all to the date of termination, with the exception of medical and dental
benefits which shall continue through the expiration of this Agreement, but Officer shall not be
paid any other compensation or reimbursement of any kind, including without limitation, severance
compensation.

          2.6 Death. In the event of Officer’s death during the term of this Agreement,
Officer’s employment shall be deemed to have terminated as of the last day of the month during
which his death occurs and Corporation shall pay to his estate or such beneficiaries as Officer may
from time to time designate all accrued salary, bonus compensation, if any, to the extent earned,
whether or not vested without regard to such Termination (other than pension plan or profit sharing
plan benefits which will be paid in accordance with the applicable plan), any benefits under any
plans of Corporation in which Officer is a participant to the full extent of Officer’s rights under
such plans (including accelerated release and full vesting of shares reserved for Officer under the
Incentive Plans, and any implementation thereof or incentive award thereunder), accrued vacation
pay and any appropriate business expenses incurred by Officer in connection with his duties
hereunder, all to the date of termination, but Officer’s estate shall not be paid any other
compensation or reimbursement of any kind, including without limitation, severance compensation.

          2.7 Voluntary Termination. In the event of a Voluntary Termination, Corporation shall
immediately pay all accrued salary, bonus compensation, if any, to the extent earned, vested
deferred compensation (other than pension plan or profit sharing plan benefits which will be paid
in accordance with the applicable plan), any benefits under any plans of Corporation in which
Officer is a participant to the full extent of Officer’s rights under such plans, accrued vacation
pay and any appropriate business expenses incurred by Officer in connection with his duties
hereunder, all to the date of termination, but no other compensation or reimbursement of any kind,
including without limitation, severance compensation.

          2.8 Termination Upon a Change in Control or Retirement. In the event of (i) a
Termination Upon a Change in Control or (ii) retirement by Officer upon attainment of Retirement
Eligibility, Officer shall immediately be paid all accrued salary, bonus compensation, if any, to
the extent earned through the date of termination, including compensation that was earned and
deferred, whether or not vested without regard to the Change in Control (other than pension plan or
profit sharing plan benefits which will be paid in accordance with the applicable plan), any
benefits under any plans of Corporation in which Officer is a participant to the full extent of
Officer’s rights under such plans (including accelerated release and full vesting of shares
reserved for Officer under the Incentive Plans, and any implementation thereof or incentive award
thereunder), accrued vacation pay and any appropriate business expenses incurred by Officer in
connection with his duties hereunder, all to the date of termination, and all severance
compensation provided in Section 4.1, but no other compensation or reimbursement of any kind.

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          2.9 Notice of Termination. Corporation may effect a termination of this Agreement
pursuant to the provisions of this Section 2 upon giving 30 days written notice to Officer of such
termination. Officer may effect a termination of this Agreement pursuant to the provisions of this
Section 2 upon giving 60 days written notice to Corporation of such termination.

     3. Salary, Benefits and Bonus Compensation.

          3.1 Base Salary. As payment for the services to be rendered by Officer as provided in
Section 1 and subject to the terms and conditions of Section 2, Corporation agrees to pay to
Officer a “Base Salary” for the 12 calendar months beginning January 1, 2007 at the rate of
$282,015 per annum payable in 24 equal semi-monthly installments. The Base Salary for each year
(or portion thereof) beginning January 1, 2008 shall be determined by the Compensation Committee of
the Board of Directors (the “Compensation Committee”) which shall authorize an increase in
Officer’s Base Salary in an amount which, at a minimum, shall be equal to the cumulative
cost-of-living increment on the Base Salary as reported in the “Consumer Price Index, Nashville,
Tennessee, All Items,” published by the U.S. Department of Labor. Officer’s Base Salary shall be
reviewed annually by the Compensation Committee. For purposes of computing the amount of severance
compensation due under this Agreement, the term “Base Salary” shall also include the market value,
as of the date of grant, of any restricted shares of the Corporation to be awarded to Officer in
lieu of annual cash salary in 2007, 2008, and 2009, but shall not include the value of any
“matching” or inducement restricted shares awarded to Officer under any deferred compensation plan
or program maintained by the Corporation.

          3.2 Additional Benefits. During the term of this Agreement, Officer shall be entitled
to the following fringe benefits:

     (a) Officer Benefits. Officer shall be eligible to participate in such of
Corporation’s benefits and deferred compensation plans as are now generally available or later made
generally available to executive officers of Corporation, including, without limitation, the
Incentive Plans, and any implementation thereof or incentive award thereunder, profit sharing
plans, annual physical examinations, dental and medical plans, personal catastrophe and disability
insurance, financial planning, retirement plans and supplementary executive retirement plans, if
any. For purposes of establishing the length of service under any benefit plans or programs of
Corporation, Officer’s employment with Corporation will be deemed to have commenced on October 20,
1998.

     (b) Vacation. Officer shall be entitled to four weeks of vacation during each year
during the term of this Agreement and any extensions thereof, prorated for partial years.

     (c) Reimbursement for Expenses. During the term of this Agreement, Corporation shall
reimburse Officer for reasonable and properly documented out-of-pocket business and/or
entertainment expenses incurred by Officer in connection with his duties under this Agreement.

     4. Severance Compensation.

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          4.1 Severance Compensation in the Event of a Termination Upon a Change in Control. In
the event Officer’s employment is terminated in a Termination Upon a Change in Control, Officer
shall be paid as severance compensation 1.5 times his Base Salary (at the rate payable at the time
of such termination), through the remaining term of this Agreement and any extensions thereof, on
the dates specified in Section 3.1; provided, however, that if Officer is employed by a new
employer during such period, the severance compensation payable to Officer during such period will
be reduced by the amount of compensation that Officer is receiving from the new employer. However,
Officer is under no obligation to mitigate the amount owed Officer pursuant to this Section 4.1 by
seeking other employment or otherwise. Notwithstanding anything in this Section 4.1 to the
contrary, Officer may in Officer’s sole discretion, by delivery of a notice to Corporation within
30 days following a Termination Upon a Change in Control, elect to receive from Corporation a lump
sum severance payment by bank cashier’s check equal to the present value of the flow of cash
payments that would otherwise be paid to Officer pursuant to this Section 4.1. However, in no
event shall payment pursuant to this Section 4.1 be less than 1.5 times his Base Salary as defined
herein for the applicable period. Such present value shall be determined as of the date of
delivery of the notice of election by Officer and shall be based on a discount rate equal to the
interest rate on 90-day U.S. Treasury bills, as reported in the Wall Street Journal (or similar
publication), on the date of delivery of the election notice. If Officer elects to receive a lump
sum severance payment, Corporation shall make such payment to Officer within ten days following the
date on which Officer notifies Corporation of Officer’s election. In addition to the severance
payment payable under this Section 4.1, Officer shall be paid an amount equal to two times the
average annual bonus, if any, earned by Officer in the two years immediately preceding the date of
termination. Officer shall also receive (i) full vesting of any awards granted to Officer under
the Incentive Plans, and any implementation thereof or incentive award thereunder; and (ii) an
immediate release of awards that have been reserved by Corporation for Officer under the Incentive
Plans, and any implementation thereof or incentive award thereunder, or otherwise, and full vesting
of such awards. Officer shall continue to accrue retirement benefits and shall continue to enjoy
any benefits under any plans of Corporation in which Officer is a participant to the full extent of
Officer’s rights under such plans, including any perquisites provided under this Agreement, through
the remaining term of this Agreement; provided, however, that the benefits under any such plans of
Corporation in which Officer is a participant, including any such perquisites, shall cease upon
re-employment by a new employer.

          4.2 Severance Compensation in the Event of a Termination Other Than For Cause. In the
event Officer’s employment is terminated in a Termination Other Than For Cause, Officer shall be
paid as severance compensation his Base Salary (at the rate payable at the time of such
termination), for a period of 18 months from the date of such termination, on the dates specified
in Section 3.1; provided, however, that if Officer is employed by a new employer during such
period, the severance compensation payable to Officer during such period will be reduced by the
amount of compensation that Officer is receiving from the new employer. However, Officer is under
no obligation to mitigate the amount owed Officer pursuant to this Section 4.2 by seeking other
employment or otherwise. In addition to the severance payment payable under this Section 4.2,
Officer shall be paid an amount equal to two times the average annual bonus, if any, earned by
Officer in the two years immediately preceding the date of termination and Officer shall also
receive (i) full vesting of any awards granted to Officer under the Incentive Plans, and

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any implementation thereof or incentive award thereunder; and (ii) an immediate release of
awards that have been reserved for Officer under the Incentive Plans, and any implementation
thereof or incentive award thereunder, or otherwise, and full vesting of such awards. Officer
shall be entitled to accelerated vesting of any accrued benefit under each deferred compensation
plan. Notwithstanding the foregoing, continued benefit accrual shall not apply in the case of any
tax-qualified retirement plan if such accrual would adversely affect the tax-qualified status of
such plan; provided, however, that the benefit which would otherwise have been contributed by
Corporation to the account of Officer in any tax-qualified defined contribution and the single sum
value of the benefit plan shall be paid by Corporation to Officer as each such contribution or
benefit would have been made or accrued, as applicable, assuming that Officer had remained employed
on a full-time basis with a rate of pay equal to his Base Salary. In the case of a Termination
Other Than For Cause by reason of the disability of Officer, and if Officer is retired for
disability, then Officer will continue to accrue benefits as provided to Corporation’s executive
officers at the time he incurs his disability, notwithstanding any subsequent nonsubstantial
employment.

          4.3 No Severance Compensation Upon Other Termination. In the event of a Voluntary
Termination, Termination For Cause, termination by reason of Officer’s disability pursuant to
Section 2.5, or termination by reason of Officer’s death pursuant to Section 2.6, Officer or his
estate shall not be paid any severance compensation and shall receive only the benefits as provided
in the appropriate section of Article II applicable to the respective termination.

          4.4 Additional Payments Due to Change in Control.

     (a) Gross Up Payment. Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment or distribution by or on behalf of Corporation to
or for the benefit of Officer as a result of a “change in control,” as defined in Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”), involving Corporation or its affiliates
(whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required under this Section 4.4
(a “Payment”)) would be subject to the excise tax imposed by Section 4999 of the Code, or any
interest or penalties are incurred by Officer with respect to such excise tax (such excise tax,
together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then Officer shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by Officer of all taxes (including 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 Gross-Up
Payment, Officer retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments.

     (b) Tax Opinion. Subject to the provisions of Section 4.4(c), all determinations
required to be made under this Section 4.4, including whether and when a Gross-Up Payment is
required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at
such determination, shall be made by a nationally recognized accounting firm or law firm selected
by Corporation (the “Tax Firm”); provided, however, that the Tax Firm shall not determine that no
Excise Tax is payable by Officer unless it delivers to Officer a written opinion (the “Tax
Opinion”) that failure to pay the

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Excise Tax and to report the Excise Tax and the payments potentially subject thereto on or
with Officer’s applicable federal income tax return will not result in the imposition of an
accuracy-related or other penalty on Officer. All fees and expenses of the Tax Firm shall be borne
solely by Corporation. Within 15 business days of the receipt of notice from Officer that there
has been a Payment, or such earlier time as is requested by Corporation, the Tax Firm shall make
all determinations required under this Section 4.4, shall provide to Corporation and Officer a
written report setting forth such determinations, together with detailed supporting calculations,
and, if the Tax Firm determines that no Excise Tax is payable, shall deliver the Tax Opinion to
Officer. Any Gross-Up Payment, as determined pursuant to this Section 4.4, shall be paid by
Corporation to Officer within 15 days of the receipt of the Tax Firm’s determination. Subject to
the remainder of this Section 4.4, any determination by the Tax Firm shall be binding upon
Corporation and Officer; provided, however, that Officer shall only be bound to the extent that the
determinations of the Tax Firm hereunder, including the determinations made in the Tax Opinion, are
reasonable and reasonably supported by applicable law. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination by the Tax Firm
hereunder, it is possible that Gross-Up Payments which will not have been made by Corporation
should have been made (“Underpayment”), consistent with the calculations required to be made
hereunder. In the event that it is ultimately determined in accordance with the procedures set
forth in Section 4.4(c) that Officer is required to make a payment of any Excise Tax, the Tax Firm
shall reasonably determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by Corporation to or for the benefit of Officer. In
determining the reasonableness of the Tax Firm’s determinations hereunder, and the effect thereof,
Officer shall be provided a reasonable opportunity to review such determinations with the Tax Firm
and Officer’s tax counsel. The Tax Firm’s determinations hereunder, and the Tax Opinion, shall not
be deemed reasonable until Officer’s reasonable objections and comments thereto have been
satisfactorily accommodated by the Tax Firm.

          (c) Notice of IRS Claim. Officer shall notify Corporation in writing of any claims by
the Internal Revenue Service that, if successful, would require the payment by Corporation of the
Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30
calendar days after Officer actually receives notice in writing of such claim and shall apprise
Corporation of the nature of such claim and the date on which such claim is requested to be paid;
provided, however, that the failure of Officer to notify Corporation of such claim (or to provide
any required information with respect thereto) shall not affect any rights granted to Officer under
this Section 4.4 except to the extent that Corporation is materially prejudiced in the defense of
such claim as a direct result of such failure. Officer shall not pay such claim prior to the
expiration of the 30-day period following the date on which he gives such notice to Corporation (or
such shorter period ending on the date that any payment of taxes with respect to such claim is
due). If Corporation notifies Officer in writing prior to the expiration of such period that it
desires to contest such claim, Officer shall do all of the following:

     (i) give Corporation any information reasonably requested by Corporation relating to such
claim;

     (ii) take such action in connection with contesting such claim as Corporation shall reasonably
request in writing from time to time, including, without

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limitation, accepting legal representation with respect to such claim by an attorney selected
by Corporation and reasonably acceptable to Officer;

     (iii) cooperate with Corporation in good faith in order effectively to contest such claim; and

     (iv) if Corporation elects not to assume and control the defense of such claim, permit
Corporation to participate in any proceedings relating to such claim;

provided, however, that Corporation 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 Officer harmless, on an after-tax basis, for any Excise Tax or income tax (including interest
and penalties with respect thereto) imposed as a result of such representation and payment of costs
and expenses. Without limiting the foregoing provisions of this Section 4.4, Corporation shall
have the right, at its sole option, to assume the defense of and control all proceedings in
connection with such contest, in which case it may pursue or forego any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim
and may either direct Officer to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and Officer 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
Corporation shall determine; provided, however, that if Corporation directs Officer to pay such
claim and sue for a refund, Corporation shall advance the amount of such payment to Officer, on an
interest-free basis and shall indemnify and hold Officer harmless, on an after-tax basis, from any
Excise Tax or income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to such advance; and
further provided that any extension of the statute of limitations relating to payment of taxes for
the taxable year of Officer with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, Corporation’s right to assume the defense of
and control the contest shall be limited to issues with respect to which a Gross-Up Payment would
be payable hereunder and Officer 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) Right to Tax Refund. If, after the receipt by Officer of an amount advanced by
Corporation pursuant to Section 4.4, Officer becomes entitled to receive any refund with respect to
such claim, Officer shall (subject to Corporation’s complying with the requirements of Section
4.4(c)) promptly pay to Corporation the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by Officer of an amount
advanced by Corporation pursuant to Section 4.4(c), a determination is made that Officer is not
entitled to a refund with respect to such claim and Corporation does not notify Officer in writing
of its intent to contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall, to the extent of such denial, be forgiven and shall not be
required to be repaid and the amount of forgiven advance shall offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.

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     5. Non-Competition; Disclosure of Investments. During the term of this Agreement,
including the period, if any, during which Officer shall be entitled to severance compensation
pursuant to Section 4.2:

          (a) Officer shall not, without the prior written consent of Corporation, directly or
indirectly, own, manage, operate, control, be connected with as an officer, employee, partner,
consultant or otherwise, or otherwise engage or participate in any corporation or other business
entity engaged in the business of buying, selling, developing, building and/or managing real estate
facilities for the medical, healthcare and retirement sectors of the real estate industry. Officer
understands and acknowledges that Corporation carries on business nationwide and that the nature of
Corporation’s activities cannot be confined to a limited area. Accordingly, Officer agrees that
the geographic scope of this Section 5 shall include the United States of America. Notwithstanding
the foregoing, the ownership by Officer of less than 2% of any class of the outstanding capital
stock of any corporation conducting such a competitive business which is regularly traded on a
national securities exchange or in the over-the-counter market shall not be a violation of the
foregoing covenant.

          (b) Simultaneously with Officer’s execution of this Agreement and upon each anniversary of the
Effective Date, Officer shall notify the Chairman of the Compensation Committee of the nature and
extent of Officer’s investments, stock holdings, employment as an employee, director, or any
similar interest in any business or enterprise other than Corporation; provided, however, that
Officer shall have no obligation to disclose any investment under $100,000 in value or any holdings
of publicly traded securities which are not in excess of one percent of the outstanding class of
such securities. Notwithstanding any provision herein to the contrary, the restrictions and
covenants of this Section 5 shall not apply in the event of a Termination Upon a Change in Control.

          (c) Officer shall not contact or solicit, directly or indirectly, any customer, client, tenant
or account whose identity Officer obtained through association with Corporation, regardless of the
geographical location of such customer, client, tenant or account, nor shall Officer, directly or
indirectly, entice or induce, or attempt to entice or induce, any employee of Corporation to leave
such employ, nor shall Officer employ any such person in any business similar to or in competition
with that of Corporation. Officer hereby acknowledges and agrees that the provisions set forth in
this Section 5 constitute a reasonable restriction on his ability to compete with Corporation and
will not adversely affect his ability to earn income sufficient to support himself and/or his
family.

          (d) The parties hereto agree that, in the event a court of competent jurisdiction shall
determine that the geographical or durational elements of this covenant are unenforceable, such
determination shall not render the entire covenant unenforceable. Rather, the excessive aspects of
the covenant shall be reduced to the threshold which is enforceable, and the remaining aspects
shall not be affected thereby.

     6. Trade Secrets and Customer Lists. Officer agrees to hold in strict confidence all
information concerning any matters affecting or relating to the business of Corporation and its
subsidiaries and affiliates, including, without limiting the generality of the foregoing, its
manner of operation, business plans, business prospects, agreements, protocols, processes, computer
programs, customer lists, market strategies, internal

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performance statistics, financial data, marketing information and analyses, or other data,
without regard to the capacity in which such information was acquired. Officer agrees that he will
not, directly or indirectly, use any such information for the benefit of any person or entity other
than Corporation or disclose or communicate any of such information in any manner whatsoever other
than to the directors, officers, employees, agents, and representatives of Corporation who need to
know such information, who shall be informed by Officer of the confidential nature of such
information and directed by Officer to treat such information confidentially. Such information does
not include information which (i) was or becomes generally available to the public other than as a
result of a disclosure by Officer or his representatives, or (ii) was or becomes available to
Officer on a non-confidential basis from a source other than Corporation or its advisors provided
that such source is not known to Officer to be bound by a confidentiality agreement with
Corporation, or otherwise prohibited from transmitting the information to Officer by a contractual,
legal or fiduciary obligation; notwithstanding the foregoing, if any such information does become
generally available to the public, Officer agrees not to further discuss or disseminate such
information except in the performance of his duties as Officer. Upon Corporation’s request, Officer
will return all information furnished to him related to the business of Corporation. The parties
hereto stipulate that all such information is material and confidential and gravely affects the
effective and successful conduct of the business of Corporation and Corporation’s goodwill, and
that any breach of the terms of this Section 6 shall be a material breach of this Agreement. The
terms of this Section 6 shall remain in effect following the termination of this Agreement.

     7. Use of Proprietary Information. Officer recognizes that Corporation possesses a
proprietary interest in all of the information described in Section 6 and has the exclusive right
and privilege to use, protect by copyright, patent or trademark, manufacture or otherwise exploit
the processes, ideas and concepts described therein to the exclusion of Officer, except as
otherwise agreed between Corporation and Officer in writing. Officer expressly agrees that any
products, inventions, discoveries or improvements made by Officer, his agents or affiliates based
on or arising out of the information described in Section 6 shall be (i) deemed a work made for
hire under the terms of United States Copyright Act, 17 U.S.C. § 101 et seq., and
Corporation shall be the owner of all such rights with respect thereto and (ii) the property of and
inure to the exclusive benefit of Corporation.

8. Miscellaneous.

          8.1 Payment Obligations. Corporation’s obligation to pay Officer the compensation and
to make the arrangements provided herein shall be unconditional, and Officer shall have no
obligation whatsoever to mitigate damages hereunder. If litigation after a Change in Control shall
be brought to enforce or interpret any provision contained herein, Corporation, to the extent
permitted by applicable law and Corporation’s Articles of Incorporation and Bylaws, hereby
indemnifies Officer for Officer’s reasonable attorneys’ fees and disbursements incurred in such
litigation.

          8.2 Waiver. The waiver of the breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach of the same or other provision hereof.

11

 

          8.3 Entire Agreement; Modifications. Except as otherwise provided herein, this
Agreement represents the entire understanding among the parties with respect to the subject matter
hereof, and this Agreement supersedes any and all prior understandings, agreements, plans and
negotiations, whether written or oral, with respect to the subject matter hereof, including without
limitation, that certain Employment Agreement between Corporation and Officer dated as of January
1, 2005, and any understandings, agreements or obligations respecting any past or future
compensation, bonuses, reimbursements or other payments to Officer from Corporation. All
modifications to the Agreement must be in writing and signed by the party against whom enforcement
of such modification is sought.

          8.4 Notices. All notices and other communications under this Agreement shall be in
writing and shall be given by personal delivery, nationally recognized overnight courier,
telefacsimile or first class mail, certified or registered with return receipt requested, and shall
be deemed to have been duly given upon receipt in the event of personal delivery or overnight
courier, three days after mailing, or 12 hours after transmission of a telefacsimile to the
respective persons named below:

     If to Corporation:

Healthcare Realty Trust Incorporated

3310 West End Avenue, Suite 700

Nashville, Tennessee 37203

Phone: (615) 269-8175

Fax: (615) 269-8122

     If to Officer:

B. Douglas Whitman

5306 Otter Creek Ct.

Brentwood, TN 37027

Phone: (615) 309-8323

Fax: (615) 690-8410

Any party may change such party’s address for notices by notice duly give pursuant to this Section
8.4.

          8.5 Headings. The Section headings herein are intended for reference and shall not by
themselves determine the construction or interpretation of this Agreement.

          8.6 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Tennessee.

          8.7 Arbitration. Any controversy or claim arising out of or relating to this
Agreement, or breach thereof, shall be settled by arbitration in Nashville, Tennessee in accordance
with the Rules of the American Arbitration Association, and judgment upon any proper award rendered
by the Arbitrators may be entered in any court having jurisdiction thereof. There shall be three
arbitrators, one to be chosen directly by each party at will, and the third arbitrator to be
selected by the two arbitrators so chosen. To the extent permitted

12

 

by the Rules of the American Arbitration Association, the selected arbitrators may grant
equitable relief. Each party shall pay the fees of the arbitrator selected by him and of his own
attorneys, and the expenses of his witnesses and all other expenses connected with the presentation
of his case. The cost of the arbitration including the cost of the record or transcripts thereof,
if any, administrative fees, and all other fees and costs shall be borne equally by the parties. To
the extent that Officer prevails with respect to any portion of an arbitration award, Officer shall
be reimbursed by Corporation for the costs and expenses incurred by Officer in connection with the
arbitration in an amount proportionate to the award to Officer as compared to the amount in
dispute.

          8.8 Severability. Should a court or other body of competent jurisdiction determine
that any provision of this Agreement is excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, and all other provisions of this
Agreement shall be deemed valid and enforceable to the extent possible.

          8.9 Survival of Corporation’s Obligations. Corporation’s obligations hereunder shall
not be terminated by reason of any liquidation, dissolution, bankruptcy, cessation of business, or
similar event relating to Corporation. This Agreement shall not be terminated by any merger or
consolidation or other reorganization of Corporation. In the event any such merger, consolidation
or reorganization shall be accomplished by transfer of stock or by transfer of assets or otherwise,
the provisions of this Agreement shall be binding upon and inure to the benefit of the surviving or
resulting corporation or person. This Agreement shall be binding upon and inure to the benefit of
the executors, administrators, heirs, successors and assigns of the parties; provided, however,
that except as herein expressly provided, this Agreement shall not be assignable either by
Corporation (except to an affiliate of Corporation in which event Corporation shall remain liable
if the affiliate fails to meet any obligations to make payments or provide benefits or otherwise)
or by Officer.

          8.10 Counterparts. This Agreement may be executed in one or more counterparts, all of
which taken together shall constitute one and the same Agreement.

          8.11 Withholdings. All compensation and benefits to Officer hereunder shall be reduced
only by all federal, state, local and other withholdings and similar taxes and payments that are
required by applicable law. Except as otherwise specifically agreed by Officer, no other offsets
or withholdings shall apply to reduce the payment of compensation and benefits hereunder.

          8.12 Indemnification. In addition to any rights to indemnification to which Officer is
entitled to under Corporation’s Articles of Incorporation and Bylaws, Corporation shall indemnify
Officer at all times during and after the term of this Agreement to the maximum extent permitted
under Section 2-418 of the General Corporation Law of the State of Maryland or any successor
provision thereof and any other applicable state law, and shall pay Officer’s expenses in defending
any civil or criminal action, suit, or proceeding in advance of the final disposition of such
action, suit, or proceeding, to the maximum extent permitted under such applicable state laws.

13

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day
and year first above written.

	 	 	 	 	 
	 	Corporation:

Healthcare Realty Trust Incorporated

 	 
	 	By:  	/s/ David R. Emery	 
	 	 	Name:  	David R. Emery 	 
	 	 	Title:  	Chairman and Chief Executive Officer
Date:  February 26, 2007 	 
	 

	 	 	 	 	 
	 	Officer:

 	 
	 	/s/ B. Douglas Whitman	 
	 	B. Douglas Whitman 	 
	 	Date:  February 26, 2007 	 
	 

14exv10w4

 

EXHIBIT 10.4

HANMI FINANCIAL CORPORATION

DEFERRED COMPENSATION PLAN

ARTICLE 1:     PURPOSES AND DEFINITIONS

	1.1	 	Purposes.
	 
	 	 	The purposes of the Plan are to provide Eligible Persons with flexibility with respect to the
timing of their Compensation and to assist the Company in attracting and retaining such persons.
	 
	1.2	 	Definitions.
	 
	 	 	Whenever used in the Plan, the following terms shall have the meaning set forth or referenced below:

	 	 	 	“Account” means the bookkeeping account maintained by the Company in the name of a
Participant.
	 
	 	 	 	“Base Salary” means an Employee’s annual base salary as in effect from time to time.
	 
	 	 	 	“Beneficiary” means the person or persons, including corporations, unincorporated
associations or trusts, designated from time to time by the Participant as his
beneficiary under the Plan. If there is no such designated person or persons or if
all such persons shall have all predeceased the Participant or otherwise ceased to
exist, the Participant’s Beneficiary shall be the Participant’s spouse or, if none,
the Participant’s estate.
	 
	 	 	 	“Board” means the board of directors of the Company and its subsidiaries.
	 
	 	 	 	“Bonus” means a cash bonus payable pursuant to an incentive compensation plan
maintained by the Company.
	 
	 	 	 	“Business Day” means a day, except for a Saturday, Sunday or a legal holiday.
	 
	 	 	 	“Change in Control” means a change in the ownership or effective control of the
Company, or in the ownership of a substantial portion of the assets of the Company
as such change is defined in Section 409A of the Code and regulations thereunder.
“Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	 	 	“Committee” means the compensation committee of the Board or such other committee of
the Board designated by it to act as the committee for purposes of the Plan.
	 
	 	 	 	“Company” means Hanmi Financial Corporation and its subsidiaries.
	 
	 	 	 	“Compensation” means Base Salary, Bonus and Fees.
	 
	 	 	 	“Deferred Compensation” means that Compensation that an Eligible Person has elected
to defer pursuant to the Plan.
	 
	 	 	 	“Director” means any individual serving on the Board of Hanmi Financial Corporation
and its subsidiaries who is not an Employee, but does not include an honorary,
advisory or emeritus director.
	 
	 	 	 	“Disability” means a condition described in Code Section 409A(a)(2)(C).

1

 

	 	 	 	“Effective Date” means October 31, 2006, the date the Plan was adopted by the Board.
	 
	 	 	 	“Eligible Person” means (i) an Employee designated by the Committee as eligible to
participate in the Plan or (ii) a Director.
	 
	 	 	 	“Employee” means an employee of the Company.
	 
	 	 	 	“Fees” means Retainer Fees and Meeting Fees. “Meeting Fees” means all cash fees
payable to a Director for attendance, as a Director, at Board or Board committee
meetings.
	 
	 	 	 	“Participant” means an Eligible Employee or a Director who has elected to
participate in the Plan or a former Employee or Director who has an Account.
	 
	 	 	 	“Performance-Based Bonus” means a Bonus that qualifies as performance-based
compensation for purposes of Code Section 409A.
	 
	 	 	 	“Plan” means the Hanmi Financial Corporation Deferred Compensation Plan.
	 
	 	 	 	“Plan Year” means the calendar year.
	 
	 	 	 	“Retainer Fees” means all cash retainer fees payable to a Director for services as a
member (or chair) of the Board or Board committee.
	 
	 	 	 	“Separation from Service” means termination of the Participant’s service with the
Company as an Employee and Director; provided that no Separation from Service shall
be deemed to occur unless such Separation from Service constitutes a separation from
service for purposes of Code Section 409A(a)(2)(A)(i).
	 
	 	 	 	“Specified Employee” means a specified employee within the meaning of Code Section
409A(a)(2)(B)(i).
	 
	 	 	 	“Stated Interest Rate” means the annual percentage yield on 5-year U.S. Treasury
Notes or such other interest rate established by the Committee from time to time.
Once established for a Plan Year, the Stated Interest Rate shall be used for all
interest determinations for such Plan Year.

	 	 	 	“Unforeseeable Emergency” means a severe financial hardship of the Participant (or his
Beneficiary) resulting from an illness or accident of the Participant or Beneficiary, the
Participant’s or Beneficiary’s spouse, or the Participant’s or Beneficiary’s dependent (as
defined in Code Section 152(a)); loss of the Participant’s or Beneficiary’s property due to
casualty or any other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant or Beneficiary.

ARTICLE 2:     PARTICIPATION

	2.1	 	Eligibility.
	 
	 	 	The Committee may from time to time designate one or more
Employees as an Eligible Persons. All Directors shall be
Eligible Persons.

2

 

	2.2	 	Deferral Elections.

	 	(a)	 	An Eligible Person may make an initial election to defer, in such amounts and
increments as the Committee may establish, receipt of Compensation payable to him for
services performed during the Plan Year. Such election must be in writing and delivered
to the Committee by December 31 of the immediately preceding Plan Year (or such earlier
date established by the Committee) and shall be irrevocable as of such December 31 (or
such earlier date established by the Committee).
	 
	 	(b)	 	An Employee who is an Eligible Person may make an initial election to defer, in
such amounts and increments as the Committee may establish, receipt of a
Performance-Based Bonus, provided such Employee has performed services continuously
from a date no later than the date upon which the performance criteria were established
and has not otherwise made an initial deferral election with respect to such
Performance-Based Bonus. An election pursuant to this Section 2.2(b) must be in writing
and delivered to the Committee no later than the date six months before the end of the
applicable performance period (or such earlier date established by the Committee) and
shall be irrevocable as of such six-month date (or such earlier date established by the
Committee); provided that no such election may be made after such Performance-Based
Bonus has become both substantially certain to be paid and readily ascertainable.
	 
	 	(c)	 	A newly Eligible Person (including an Employee newly designated by the
Committee as an Eligible Person or a first-time Director or first-time nominee for
Director) may make an initial election to defer, in such amounts and increments as the
Committee may establish, receipt of Compensation payable to him for services performed
subsequent to such deferral election during the first Plan Year in which he becomes an
Eligible Person. Such election must be in writing and delivered to the Committee no
later than the 30th day after the date such person first becomes an Eligible
Person (or such earlier date established by the Committee) and shall be irrevocable as
of such 30th day (or such earlier date established by the Committee).
Notwithstanding the foregoing, for Compensation that is earned based upon a specified
performance period (such as a Performance-Based Bonus), where the deferral election is
made in the first year of eligibility but after the beginning of the performance
period, the election will be deemed to apply only to that portion of the performance
based compensation that is earned subsequent to the deferral. The amount deferred shall
be determined by multiplying the entire amount paid for the performance period
multiplied by the ratio of the number of days remaining in the performance period after
the election over the total number of days in the performance period.
	 
	 	(d)	 	In the case of the Plan Year in which the Plan first becomes effective, an
Eligible Person may elect to defer, in such amounts and increments as the Committee may
establish, receipt of Compensation payable to him for services performed subsequent to
such deferral election during such Plan Year. Notwithstanding the foregoing, for
Compensation that is earned based upon a specified performance period (such as a
Performance-Based Bonus), where the deferral election is made in the first year the
Plan becomes effective but after the beginning of the performance period, the election
will be deemed to apply only to that portion of the performance based compensation that
is earned subsequent to the deferral. The amount deferred shall be determined by
multiplying the entire amount paid for the performance period multiplied by the ratio
of the number of days remaining in the performance period after the election over the
total number of days in the performance period. Such election must be made in writing
and delivered to the Committee no later than the 30th day after the
Effective Date (or such earlier date established by the Committee) and shall be
irrevocable as of such 30th day (or such earlier date established by the
Committee).
	 
	 	(e)	 	The amount that an Eligible Person may elect to defer may not exceed the amount
of such Eligible Person’s Compensation less applicable withholding taxes (e.g., FICA
taxes).

3

 

	2.3	 	Participant Accounts.

	 	(a)	 	A Participant’s Deferred Compensation shall be allocated to his Account.
	 
	 	(b)	 	A Participant’s Account shall be credited, as of the day the Deferred
Compensation otherwise would have been paid to such Participant, with the amount of
such Deferred Compensation and shall be reduced, as of the day that any amount is
distributed from such Account, by the amount of such distribution. As of the last day
of each calendar month, the Participant’s Account shall be credited with an amount
equal to the product of (i) the average daily balance in his Account during such month
(determined after adjustment for any Deferred Compensation credited thereto and any
amount distributed therefrom as of each day in such month) and (ii) the Stated Interest
Rate.
	 
	 	(c)	 	A Participant shall be one hundred percent (100%) vested in his Account at all
times.

	2.4	 	Payments Upon Separation from Service.

	 	(a)	 	All payments shall be made in cash or Company common stock.
	 
	 	(b)	 	Payment of a Participant’s Account shall be made or commence in accordance with
such Participant’s election as soon as practicable following such Participant’s
Separation from Service, but in no event later than the first Business Day of the
second month following such Participant’s Separation from Service unless the
Participant has elected a later month.
	 
	 	(c)	 	Anything in the Plan to the contrary notwithstanding, to the extent required by
Code Section 409A, no payment shall be made from the Plan before the date that is six
months after a Participant’s Separation from Service (or if earlier the Participant’s
death) if such Participant is a Specified Employee. Payments to which a Specified
Employee would otherwise be entitled during the first six months following Separation
from Service shall be accumulated and paid on the first Business Day of the seventh
month following Separation from Service.
	 
	 	(d)	 	A Participant may elect to receive his Account in monthly installments or in a
single sum. If no such election is made, the Participant shall be deemed to have
elected to receive his Account in a single sum. The amount of a monthly installment
shall be equal to the product of the current balance in the Participant’s Account and a
fraction, the numerator of which is one and the denominator of which is the total
number of installments elected minus the number of installments previously paid. All
monthly installments shall commence and be paid as of the first Business Day of the
month.
	 
	 	(e)	 	A Participant’s elections (or deemed elections) pursuant to this Section 2.6
must be in writing and delivered to the Committee at the time of and with such
Participant’s election to defer Compensation pursuant to Section 2.2. A Participant
may, subject to the approval of the Committee, elect to change in his election (or
deemed election) regarding the date or form of payment of his Account; provided that
(i) such election shall not take effect until at least 12 months after the date on
which such election is made, (ii) except in the cases of Death, Disability or
Unforeseen Emergency, the payment with respect to which such election is made must be
deferred for a period of not less than five years from the date such payment would
otherwise have been paid or commenced, and (iii) in the case of a payment at a
specified time or pursuant to a fixed schedule, such election may not be made less than
12 months prior to the date such payment is otherwise scheduled to be paid or commence.

4

 

	2.5	 	Unforeseeable Emergencies.
	 
	 	 	If a Participant (or his Beneficiary) believes that an
Unforeseeable Emergency has occurred, the Participant (or his
Beneficiary) may file a request for an accelerated payment of
his Account. If the Committee determines that an
Unforeseeable Emergency has occurred, (the Participant (or
his Beneficiary) shall receive a payment in cash from his
Account as soon as practicable to satisfy such Unforeseeable
Emergency. The amount of such payment shall not exceed the
amount necessary to satisfy the Unforeseeable Emergency (plus
an amount necessary to pay taxes reasonably anticipated as a
result of such payment) after taking into account the extent
to which the Unforeseeable Emergency is or may be relieved
through reimbursement or compensation by insurance or
otherwise, by liquidation of the Participant’s assets (to the
extent that such liquidation would not itself cause severe
financial hardship), or by the cessation of deferrals under
the Plan.
	 
	2.6	 	Payments Upon Death.
	 
	 	 	Upon the death of a Participant, the Committee shall pay the
Participant’s Account in a single cash sum to the
Participant’s Beneficiary. Such payment shall be made as soon
as practicable following the end of the month in which the
Committee is notified of the Participant’s death or is
satisfied as to the identity of the appropriate payee,
whichever is later.
	 
	2.7	 	Payments Upon a Change in Control.
	 
	 	 	Upon the occurrence of a Change in Control, each
Participant’s Account shall be paid to him in a cash lump sum
as soon as practicable, but no later than one month following
such Change in Control; provided that an immediate payment
shall not be made to the Participant if, upon such Change in
Control, the Company reaffirms, or its successor assumes, the
Plan and provides that the Stated Interest Rate shall not be
less than as in effect immediately prior to such Change in
Control.
	 
	2.8	 	Withholding Taxes.
	 
	 	 	The Company shall deduct from all Compensation and payments
under the Plan any taxes required to be withheld by federal,
state, or local law.

ARTICLE 3:     ADMINISTRATION

	3.1	 	In General.
	 
	 	 	The Committee will have full and complete authority, in its
sole and absolute discretion, (i) to exercise all of the
powers granted to it under the Plan, (ii) to construe,
interpret and implement the Plan and any related document,
(iii) to prescribe, amend and rescind rules and forms
relating to the Plan, (iv) to make all determinations
necessary or advisable in administering the Plan, and (v) to
correct any defect, supply any omission and reconcile any
inconsistency in the Plan.
	 
	3.2	 	Decisions.
	 
	 	 	The Committee shall establish a claims procedure. The actions
and determinations of the Committee or others to whom
authority is delegated under the Plan on all matters relating
to the Plan will be final and conclusive.
	 
	3.3	 	Experts.
	 
	 	 	The Committee may appoint such accountants, counsel, and
other experts as it deems necessary or desirable in
connection with the administration of the Plan.

5

 

	3.4	 	Delegation.
	 
	 	 	The Committee may delegate to Employees the authority to
execute and deliver such instruments and documents, to do all
such acts and things, and to take all such other steps deemed
necessary, advisable or convenient for the effective
administration of the Plan in accordance with its terms and
purposes.
	 
	3.5	 	Records.
	 
	 	 	The Committee and others to whom the Committee has delegated
authority under the Plan shall keep a record of all their
proceedings and actions and shall maintain all such books of
account, records and other data as shall be necessary for the
proper administration of the Plan.
	 
	3.6	 	Expenses and Indemnification.
	 
	 	 	The Company shall pay all reasonable expenses of
administering the Plan, including, but not limited to, the
payment of professional and expert fees, and shall indemnify
and hold harmless the members of the Committee and others to
whom the Committee has delegated authority under the Plan
against any and all claims, loss, damage, expense or
liability arising from any action or failure to act with
respect to this Plan, except in the case of gross negligence
or willful misconduct.

ARTICLE 4:     MISCELLANEOUS

	 
	4.1	 	Unfunded Plan.
	 
	 	 	No promise hereunder shall be secured by any specific assets
of the Company, nor shall any assets of the Company be
designated as attributable or allocated to the satisfaction
of such promises. Participants shall have no rights under the
Plan other than as unsecured general creditors of the
Company.
	 
	4.2	 	Nonalienation.
	 
	 	 	No payment or right under the Plan shall be assignable or
transferable (including pursuant to a pledge or security
interest) other than by will or by the laws of descent and
distribution or other than as may be required by applicable
law.
	 
	4.3	 	Invalidity.
	 
	 	 	If any term or provision contained herein is to any extent
invalid or unenforceable, such term or provision will be
reformed so that it is valid, and such invalidity or
unenforceability will not affect any other provision or part
hereof.
	 
	4.4	 	Governing Law.
	 
	 	 	This Plan shall be governed by the laws of the State of
Delaware, without regard to the conflict of law provisions
thereof.
	 
	4.5	 	Amendment, Modification and Termination of the Plan.
	 
	 	 	The Board at any time may terminate and in any respect amend
or modify the Plan; provided, however, that no such
termination, amendment or modification shall adversely affect
the rights of any Participant or Beneficiary except if the
Board determines that such action is necessary to comply with
the requirements of Code Section 409A.

6

 

	4.6	 	Rights.
	 
	 	 	Participation in this Plan shall not give any Director or Employee the
right to continue to as a Director or Employee or any rights or
interests other than as herein provided.
	 
	4.7	 	Use of Terms.
	 
	 	 	The masculine includes the feminine and the plural includes the
singular, unless the context clearly indicates otherwise.
	 
	4.8	 	Code Section 409A.
	 
	 	 	The Plan is intended to comply, both in form and operation, with the
requirements of Code Section 409A and shall be limited, construed and
interpreted in accordance with such intent. To the extent that any
payment hereunder is subject to Code Section 409A, it is intended that
it be paid in a manner that shall comply with Code Section 409A,
including proposed, temporary or final regulations or any other
guidance issued by the Secretary of the Treasury and the Internal
Revenue Service with respect thereto. Anything in the Plan to the
contrary notwithstanding, any provision in the Plan that is
inconsistent with Code Section 409A shall be deemed to be amended to
comply with Code Section 409A and, to the extent such provision cannot
be amended to comply therewith, such provision shall be null and void.
Any action that may be taken with respect to the operation of the Plan
shall not be taken and any such action actually taken shall be null
and void if such action violates the requirements of Code Section
409A. Notwithstanding the foregoing, neither the Company nor the
Committee (nor any person to whom the Committee has delegated
authority under the Plan) shall have any liability to the Participant
or otherwise if any amounts paid or payable are subject to taxes,
interest or penalties as a result of Code Section 409A.
	 
	4.9	 	Headings not Part of Plan.
	 
	 	 	Headings and subheadings in the Plan are inserted for reference only
and are not to be considered in the construction of the Plan.

7

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