Document:

EX-10.27

Exhibit 10.27

EXECUTION COPY

Haights Cross Communications, Inc.

Separation and Release Agreement

     On November 10, 2008 this Separation and Release Agreement (the “Release Agreement”) by and
between Kevin McAliley (the “Employee”), and Haights Cross Communications, Inc. (the “Company”) is
presented to the Employee. This Release Agreement, executed on the date specified below (the date
of execution by the Employee hereinafter referred to as the “Execution Date”), shall be in full
force and effect as of the Effective Date (as defined below).

RECITAL

     WHEREAS, Employee and the Company agreed to provide the Employee with severance benefits
pursuant to a statement of benefits that was provided to the Employee on or about August 1, 2007
(the “Severance Letter”), such Severance Letter being updated to reflect the Employee’s current
level of base compensation; and

     WHEREAS, Employee and Company desire to reach a mutual understanding and acceptance of the
terms and conditions related to Employee’s separation from employment with Company;

     WHEREAS, the Employee shall cease to be employed by the Company effective as of November 24,
2008.

AGREEMENT

     NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained it is
hereby agreed as follows:

     1. Separation Date. Employee shall resign as the President and CEO of Triumph
Learning, LLC, a wholly-owned subsidiary of the Company, and as Executive Vice President of the
Company, and cease to be an employee of Company as of November 24, 2008 (the “Separation Date”) and
shall execute and deliver a letter of resignation to the Company in the form attached as
Exhibit A hereto and dated as of the Separation Date. The Company and Employee agree that
the Employee’s last day in the Company’s offices was October 22, 2008 and thereafter he will remain
available to consult with the Company as reasonably requested by the Company until the Separation
Date.

     2. Severance. In consideration of Employee’s accepting and not revoking this Release
Agreement:

     (a) Company shall pay, via wire transfer, Employee a lump sum of $606,300 subject to
expiration of the revocation period described in Section 15 no later than seven (7) business days
following the Separation Date, which amount would not be due him if he did not execute this Release
Agreement. If there is any inconsistency between the Severance Letter and this

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Release Agreement, this Release Agreement shall control. The payments indicated in this
Section 2(a) hereof shall be net of all other withholdings consistent with past practices or as
otherwise required by law, including, without limitation, applicable federal and state taxes and
shall be in lieu of, and full satisfaction thereof, any and all payments due pursuant to the
Severance Letter.

     (b) If the Employee elects COBRA continuation coverage, then the Company shall reimburse the
Employee for the portion of COBRA continuation coverage monthly premium in an amount equal to the
amount of monthly health and welfare premiums that the Company pays on behalf of active employees
of the Company for up to eighteen (18) months (the “Benefit Continuation Period”). The Employee
will be responsible for paying the employee portion for the COBRA continuation premiums. If the
Employee becomes eligible to receive health insurance coverage under another employer’s group
health plan at any time during the Benefit Continuation Period, then the Company’s obligation to
pay the Employee portion of the health and welfare premiums shall immediately cease. The benefits
provided under this Section 2(b) are expressly subject to the Employee electing COBRA continuation
coverage and not being eligible to receive coverage under another employer’s group health plan.

     (c) Accrued Vacation. The Company shall pay employee accrued but unused vacation of $22,040
simultaneous with his last payroll amount on November 24, 2008. All amounts due hereunder shall be
paid by wire transfer to Employee’s Chase bank account. ABA routing number 021000021, account
number 937016997265.

     3. Release.

     (a) In consideration for, among other things, the payments to be made pursuant to Sections
2(a) and (2(b), Employee, for himself, his agents, legal representatives, assigns, heirs,
distributes, devisees, legatees, administrators, personal representatives and executors
(collectively, the “Releasing Parties”), hereby releases and discharges the Company and its present
and past subsidiaries and affiliates, its and their respective successors and assigns, and the
present and past shareholders, officers, directors, employees, agents and representatives of each
of the foregoing (collectively, the “Releasees”), from any and all claims, demands, actions,
liabilities and other claims for relief and remuneration whatsoever, whether known or unknown, from
the beginning of the world to the date Employee signs this Release Agreement, excluding any and all
claims, demands, actions, liabilities and other claims for relief and remuneration under the
Severance Letter or any other agreement, whether oral or written, but otherwise including, without
limitation, any claims arising out of or relating to Employee’s employment with and termination of
employment from the Company, for wrongful discharge, for breach of contract, for discrimination or
retaliation under any federal, state or local fair employment practices laws, including, Title VII
of the Civil Rights Act of 1964 (as amended by the Civil Rights Act of 1991), the Family and
Medical Leave Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act,
Employee retirement Income Security Act of 1974, for defamation or other torts (subject to Sections
8 and 10), for wages, bonuses, incentive compensation, stock, stock options, vacation pay or any
other compensation or benefit and any claims under any tort or contract (express or implied)
theory, and any of the claims, matters and

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issues which could have been asserted by the Releasing Parties against the Released Parties in
any legal, administrative or other proceeding in any jurisdiction.

     (b) Exceptions. This Release Agreement does not (i) prohibit or restrict the Employee
from communicating, providing relevant information to or otherwise cooperating with the EEOC or any
other governmental authority with responsibility for the administration of fair employment
practices laws regarding a possible violation of such laws or responding to any inquiry from such
authority, including an inquiry about the existence of this Release Agreement or its underlying
facts, or (ii) preclude Employee from benefiting from classwide injunctive relief awarded in any
fair employment practices case brought by any governmental agency.

     (c) It is understood and agreed that, with the exception of all obligations of the Company
pursuant to the terms and conditions set forth in any employee benefit plan, all which shall remain
fully binding and in full effect subsequent to the execution of this Release Agreement in
accordance with the terms and conditions set forth therein, the payment of accrued and unused
vacation pay and payment of accrued and unpaid wages through the Separation Date, the release set
forth in the preceding Section is intended as and shall be deemed to be a full and complete release
of any and all claims that Employee or Releasing Parties may or might have against Releasees, or
any of them, arising out of any occurrence arising on or before the Execution Date and said release
is intended to cover and does cover any and all future damages not now known to Employee or which
may later develop or be discovered, including all causes of action therefore and arising out of or
in connection with any occurrence arising on or before the Execution Date.

     4. ADEA Release. By signing and returning this Release Agreement, Employee
acknowledges that Employee:

     (a) has carefully read and fully understands the terms of this Release Agreement;

     (b) is entering into this Release Agreement voluntarily and knowing that Employee is releasing
claims that Employee has or believes Employee may have against the Releasees; and

     (c) has obtained advice of counsel with respect to the negotiation and execution of this
Release Agreement.

     5. Returned Property. Employee agrees to return all Company property, including,
without limitation, security card, papers, records and documents in Employee’s possession to
Company immediately. The Company agrees to provide the Employee access to the Company’s voicemail
until December 31, 2008, subject to Employee’s agreement to forward any business related messages
to the Company. Subject to the confidentiality provisions of Section 7 below, Employee may retain
a copy of his Outlook contact file. Employee may keep his laptop computer, which has already been
cleaned by the Company’s IT personnel. Employee may use his Verizon Air Card through December 31,
2008.

     6. Injunction. Should Employee violate any of his obligations under this Release
Agreement, the Company may cease making payments and continuing benefits to the extent

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provided for hereunder without in anyway affecting the continuing validity of the release set
forth in Sections 3 or 4 of this Release Agreement. Employee agrees that restrictions contained in
Section 7 are necessary to protect the business of the Company and are considered reasonable for
such purposes. Employee agrees that any breach of any provision of Section 7 may cause the Company
substantial and irreparable damages which are difficult to measure. Therefore, in the event of any
such breach or threatened breach, Employee agrees that, in addition to all other rights and
remedies, the Company shall have the right to immediate injunctive relief.

     7. Confidentiality/Restrictions.

     (a) By employment with Company, Employee has had, or will have, contact with and gain
knowledge of certain confidential and proprietary information and trade secrets, including without
limitation, analyses of Company’s prospects and opportunities; programs (including advertising);
direct mail and telephone lists, customer lists and potential customer lists; Company’s plans for
present and future developments; marketing information including strategies, tactics, methods,
customer’s market research data; financial information, including reports, records, costs, and
performance data, debt arrangements, holdings, income statements, annual and/or quarterly
statements and accounting records and/or tax returns; operational information, including operating
procedures, products, methods, service techniques, “know-how”, production plans, plans, concepts,
designs, specifications, trade secrets, processes, methods and suppliers; technical information,
including computer software programs; research and development projects; product design, processes,
inventions, designs, or discoveries, which information Company treats as confidential. Employee
agrees that Employee will not communicate or disclose to any third party or use for Employee’s own
account, without the written consent of Company, any of the aforementioned information or material,
except as required by law, unless and until such information or material becomes generally
available to the public through sources other than Employee.

     (b) Employee will deliver to Company all property, documents, or materials in his possession
or custody, of any nature belonging to Company whether in original form or copies of any kind,
including any trade secrets and proprietary information upon the Separation Date.

     (c) For a period of eighteen months following the Separation Date, Employee shall not,
directly or indirectly (i) solicit, attempt to hire or hire any then employee or individual who had
been an employee in the prior three (3) months of the Company or of any of its affiliates or (ii)
encourage, facilitate or induce any employee of the Company to terminate their employment with the
Company or any of its affiliates. Notwithstanding the foregoing, Employee shall not be prohibited
from working for an employer that solicits, attempts to hire or hires any of the foregoing
individuals provided Employee is not personally involved in the hiring process or otherwise
consults with individuals who are personally involved in the hiring process.

     8. Public Statements. Employee hereby agrees that he shall support the Company in
public statements and in dealings with third parties, and will refrain from making any derogatory
or false statements with respect to the Company or any of its officers, directors, employees,
advisors, customers, shareholders or other related or affiliated parties or any other Releasees.
Company hereby agrees that it shall direct its officers, directors, employees, advisors,

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shareholders or other related or affiliated parties to support Employee in public statements
and in dealings with third parties, and to refrain from making any derogatory or false statements
with respect to Employee. The Company and the Employee will refer only to the press release,
Exhibit B hereto, and the Company will confirm Employee’s dates of employment.

     9. Voluntary Assent. Employee hereby represents and agrees that in entering into this
Release Agreement, Employee has relied solely upon Employee’s own judgment, belief and knowledge
and Employee’s own legal and other professional advisors and that no statement made by or on behalf
of Company has in any way influenced Employee in such regard. It is agreed by each of the parties
hereto that they have read the above and fully understand the terms of this Release which they
voluntarily execute in good faith and deem to be a full and equitable settlement of this matter.

     10. Press Release. Annexed hereto as Exhibit B is the press release previously issued
by the Company regarding the Employee.

     11. No Assignment. Employee hereby represents and warrants to Company that Employee
has not assigned any claim that Employee may or might have against Company, from which the Company
would otherwise be released pursuant to this Release Agreement, to any third party.

     12. Entire Agreement. This Agreement constitutes the entire understanding of the
Employee and the Company with respect to the rights and other benefits that the Employee shall be
or may be entitled to. In the event of any conflict between this Release Agreement and the
Severance Letter, or any other agreement, whether oral or written, to which either Company, or any
affiliates of the Company and Employee are a parties, the provisions of this Release Agreement
shall prevail.

     13. Governing Law. This Release Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to conflict of laws
principles.

     14. Severability. The provisions of this Release Agreement are severable. If any
provision of this Release Agreement is declared invalid or unenforceable, any court of competent
jurisdiction reviewing such provision shall enforce the provision to the maximum extent permissible
under applicable law. Any ruling will not affect the validity and enforceability of any other
provision of the Release Agreement.

     15. Revocation. Employee acknowledges that he has been given the opportunity to
consider this Release Agreement for at least twenty-one (21) days before signing it. For a period
of seven (7) days from the date Employee signs this Release Agreement, Employee has the right to
revoke this Release Agreement by written notice to the undersigned. This Release Agreement shall
not become effective or enforceable until the expiration of the revocation period. This Release
Agreement shall become effective on the first business day following the expiration of the
revocation period (the “Effective Date”).

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     16. Notices. All notices and other communications hereunder shall be in writing and
shall be given by electronic mail, hand-delivery to the other party or by registered or certified
mail, overnight courier, return receipt requested, postage pre-paid addressed as follows:

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If to the Employee:

Kevin McAliley

33 Perry Street

New York, NY 10014

With a copy to:

Steven A. Berger, Esq.

Berger & Webb, LLP

1633 Broadway, 46th Floor

New York, New York 10019

Telephone: (212) 319-1900

Facsimile: (212) 319-2017

sberger@bergerwebb.com

If to the Company:

Paul J. Crecca

Haights Cross Communications, Inc.

10 New King Street

White Plains, NY 10604

with a copy to:

James L. Hauser, Esq.

Brown Rudnick LLP

One Financial Center

Boston, MA 02111

Telephone: (617) 856-8130

Facsimile: (617) 856-8201

jhauser@brownrudnick.com

       or to such other addresses either party shall furnish to the other in writing in accordance
herewith. Notices and communications shall be effective when actually received by the addressee.

       17. Counterparts. This Release Agreement may be executed in several counter-parts,
each of which shall be deemed to be an original but all of which together shall constitute one and
the same instrument.

       18. Waiver. The Employee’s or the Company’s failure to insist upon strict compliance
with any provision hereof, shall not be deemed to be a waiver of such provision or any other
provision thereof.

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     IN WITNESS WHEREOF, Company and Employee have executed and delivered this Release Agreement as
of the date first written above.

	 	 	 	 	 	 
	 	/s/ Kevin McAliley	 	 
	 	 	 	 
	 	Kevin McAliley	 	 
	 
	 	 	 	 	 
	 	HAIGHTS CROSS COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 	 
	 	By:

	 	/s/ Paul J. Crecca
 

Paul J. Crecca, Chief Executive Officer and President
	 	 

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Exhibit A

Letter of Resignation

October 31, 2008

Board of Directors

Haights Cross Communications, Inc.

10 New King Street

White Plains, New York

	 	 	 	 	 
	 

	 	Re:
	 	Haights Cross Communications, Inc. and all direct and indirect subsidiaries (the “Haights Companies”)

Gentlemen:

     I hereby resign from all officer and director positions that I hold, if any, in all of the
Haights Companies, effective immediately.

	 	 	 	 	 
	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Kevin McAliley
	 	 

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Exhibit B

HAIGHTS CROSS COMMUNICATIONS

PRESS RELEASE

	 	 	 
	Investor Contact:  
	 	 
	Mark Kurtz  
	 	 
	(914) 289-9480  
	 	 
	mkurtz@haightscross.com  
	 	 
	   
	 	 
	Editorial Contact  
	 	 
	Michael Stugrin  
	 	 
	(562) 498-6353

	 	FOR IMMEDIATE RELEASE
	mstugrin@earthlink.net  
	 	 

HAIGHTS CROSS COMMUNICATIONS ANNOUNCES

MCALILEY RESIGNATION

White Plains, NY, October 22, 2008 — Haights Cross Communications, Inc. announced today that Kevin
McAliley has resigned as President and Chief Executive Officer of Triumph Learning.
Paul Crecca, Haights Cross President and Chief Executive Officer, said: “It is with disappointment
that I announce that Kevin McAliley has resigned his position as CEO of Triumph Learning. I would
like to thank Kevin for his outstanding service to Triumph Learning and wish him well in the
future. With his many talents, I am sure he will be highly successful in his next endeavor.”
McAliley became President and CEO of Triumph Learning in October 2001. Under his leadership,
Triumph has grown dramatically to become a leading supplemental educational publishing company.
McAliley said: “I thank Haights Cross for the wonderful opportunity that I have had to build
Triumph Learning. I have enjoyed the past eight years enormously. Most important was the chance to
work with colleagues whom I believe are among the most talented in the industry. It has been a
pleasure and honor to co-create Triumph with them and with the team at Haights Cross. Triumph
Learning has enormous strengths as the market leader in standards-based instruction.”

About Haights Cross Communications:

Founded in 1997 and based in White Plains, NY, Haights Cross Communications is a premier
educational and library publisher dedicated to creating the finest books, audio

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Exhibit 10.4

PERFORMANCE SHARE AWARD AGREEMENT

UNDER THE CARE INVESTMENT TRUST INC. EQUITY PLAN

	 	 	 
	Name of Grantee:

	 	F. Scott Kellman
	 
	 	 
	Target Award:

	 	23,255 Performance Shares (the “Target Award”)
	 
	 	 
	Performance Award Period:

	 	January 1, 2008 through and ending on December 31, 2010 (the “Award
Period”)
	 
	 	 
	Date of Grant:

	 	May 12, 2008

     This Performance Share Award Agreement (the “Agreement”) is between Care Investment Trust
Inc., a Maryland corporation (the “Company”), and you, the Grantee named above, as an employee of
CIT Healthcare LLC, the manager of the Company pursuant to a management agreement (the “Manager”).

     The Company wishes to award to you Performance Shares on the terms and conditions set forth in
this Agreement and in the Care Investment Trust Inc. Equity Plan (the “Plan”). Capitalized terms
that are used in this Agreement and that are not defined herein shall have the meanings set forth
in the Plan.

     Accordingly, for good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Company and you hereby agree as follows:

     1. Award of Performance Shares.

     The Company hereby grants to you, effective as of the Grant Date, the Target Award, which
represents the opportunity to receive a number of shares of the Company’s Common Stock, par value
$0.001 per share (the “Common Stock”), as are earned in accordance with Section 2 of this
Agreement, as more fully set forth in Section 3 of this Agreement.

     2. Determination of Number of Shares of Common Stock Earned.

     The number of shares of Common Stock earned as of the end of the Award Period, if any, will be
determined as follows:

Number of Shares = Payout Percentage x Target Award

     The “Payout Percentage” will be determined by the achievement of Company performance goals
with respect to the Award Period as set forth and provided in Schedule A (the “Performance Goals”),
with the Payout Percentage being 50% for “Threshold” performance, 100% for “Target” performance and
200% for “Maximum” performance. As such, if “Threshold” performance is met with respect to the
Award Period, you will earn 11,627 shares of Common Stock under this Agreement and if “Maximum”
performance is met with respect to the Award Period, you will earn

 

 

46,510 shares of Common Stock
under this Agreement, subject to the terms of Section 3 of this
Agreement. Performance below “Threshold” will result in a Payout Percentage of 0%, with no shares
of Common Stock being earned by you under this Agreement. If performance is between “Threshold”
and “Target” or “Target” and “Maximum,” the number of Shares earned under this Agreement will be
calculated by linear interpolation.

     3. Issuance of Shares.

     Subject to Section 4 of this Agreement, the number of Shares earned under Section 2 of this
Agreement will be issued to you as soon as reasonably practicable following the close of the Award
Period and the Committee’s determination of the level of Company achievement under the Performance
Goals, but in no event later than the June 1st immediately following the close of the Award Period.

     4. Termination of Employment.

     (a) If your position as CEO of the Company is terminated by the Company’s board of directors
for “cause” (as defined in subsection (c) below) or by you prior to the end of the Award Period,
all Performance Shares will be automatically forfeited upon such termination without any
consideration due to you.

     (b) If your position as CEO of the Company is terminated for any reason other than as set
forth in subsection (a) above prior to the end of the Award Period, the determination of the Payout
Percentage for the Award Period will be made by the Committee at the end of the Award Period in
accordance with Section 2 above, and Performance Shares earned, if any, will be paid in accordance
with Section 3 above based on such Payout Percentage prorated for the number of full months elapsed
from and including the month in which the Award Period began to and including the month in which
your termination occurs.

     (c) For purposes of this Agreement, “cause” shall mean that the Company’s board of directors,
acting in good faith after consultation with the Manager, determines that you have engaged in or
committed: willful misconduct; gross negligence; theft, fraud or other illegal conduct; refusal or
unwillingness to perform your duties; sexual harassment; any willful act that has the effect of
injuring the business of the Company; violation of any fiduciary duty; or breach of any term of
this agreement

     5. Effect of a Change in Control. 

     Upon a Change in Control, the Award Period shall be deemed completed in full as of the
effective time of such transaction, the Performance Goals shall be deemed to have been attained at
“Target” and the Performance Shares shall be converted into shares of Common Stock in accordance
with Section 2 of this Award Agreement.

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     6. Effect of Termination of Management Agreement.

     If the management agreement between the Company and the Manager is terminated or not renewed
other than for Cause (as such term shall be defined in the management agreement), provided that you
are then employed by the Manager and occupy the position of CEO of the Company, the Award Period
shall be deemed completed in full as of the effective time of such termination or non-renewal, the
Performance Goals shall be deemed to have been attained at “Target” and the Performance Shares
shall be converted into shares of Common Stock in accordance with Section 2 of this Agreement. If
the management agreement is terminated or not renewed for Cause (as such term shall be defined in
the management agreement) prior to the end of the Award Period, all Performance Shares shall be
automatically forfeited without any consideration due to you.

     7. Transfer Restrictions.

     Notwithstanding anything to the contrary in this Agreement, the Performance Shares may not be
sold, assigned, transferred, pledged, or otherwise encumbered by you.

     No transfer by will or the applicable laws of descent and distribution of any shares of Common
Stock which are issuable to you upon settlement of the Performance Shares by reason of your death
shall be effective to bind the Company unless the Committee administering the Plan shall have been
furnished with written notice of such transfer and a copy of the will or such other evidence as the
Committee may deem necessary to establish the validity of the transfer.

     8. Distributions and Adjustments.

     (a) If there is any change in the number or character of the Common Stock of the Company
without additional consideration paid to the Company (through any stock dividend or other
distribution, recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase or exchange of shares or otherwise), the
Committee shall, in such manner and to such extent (if any) as it deems appropriate and equitable,
adjust the number of Performance Shares subject to this Agreement accordingly, in its sole
discretion. Any fractional Performance Shares resulting from an adjustment under this Section 8(a)
shall be rounded down to the nearest whole unit.

     (b) Dividends otherwise payable during the Award Period, if any, will accrue for the benefit
of you (without interest) and will be paid to you (if you are otherwise entitled to a payment under
this Agreement) at the same time as payment of your Performance Shares, if any, based on the actual
number of Shares earned under Section 2.

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     9. Taxes.

     (a) You acknowledge that you will consult with your personal tax advisor regarding the
federal, state and local tax consequences of the grant of the Performance Shares, payment of
dividend equivalents on the Performance Shares (if any) and the issuance of shares of Common Stock
to you in settlement of the Performance Shares and any other matters related to this Agreement.
You are relying solely on your advisors and not on any statements or representations of the Company
or any of its agents. You understand that you are responsible for your own tax liability that may
arise as a result of this grant or any other matters related to this Agreement.

     (b) In order to comply with all applicable federal, state or local income tax laws or
regulations, the Company may take such action as it deems appropriate to ensure that all income and
payroll taxes, which are your sole and absolute responsibility, are withheld or collected from you
at the minimum required withholding rate.

     (c) In accordance with the terms of the Plan, and such rules as may be adopted by the
Committee administering the Plan, you may elect to satisfy any applicable tax withholding
obligations arising from the settlement of the Performance Shares (including property attributable
to the Performance Shares described in Section 8(b) above) by:

          (i) delivering cash (including check, draft, money order or wire transfer made payable to the
order of the Company),

          (ii) having the Company withhold a portion of the shares of Common Stock to be issued to you
in settlement of the Performance Shares having a Fair Market Value equal to the minimum tax
withholding amount for such taxes, or

          (iii) delivering to the Company shares of Common Stock having a Fair Market Value equal to the
minimum tax withholding amount for such taxes. The Company will not deliver any fractional share
of Common Stock but will pay, in lieu thereof, the Fair Market Value of such fractional share of
Common Stock. Your election must be made on or before the date that the amount of tax to be
withheld is determined.

     10. General Provisions.

     (a) Interpretations. This Agreement is subject in all respects to the terms of the
Plan. A copy of the Plan is available upon your request. In the event that any provision of this
Agreement is inconsistent with the terms of the Plan, the terms of the Plan shall govern. Any
question of administration or interpretation arising under this Agreement shall be determined by
the Committee, and such determination shall be final, conclusive and binding upon all parties in
interest.

     (b) No Right to Employment. Nothing in this Agreement or the Plan shall be construed
as giving you the right to be retained as an employee of the Manager or as CEO of the Company. In
addition, the Manager may at any time dismiss you from employment with the Manager, and the
Company’s board of directors may at any time remove you as CEO of the Company, in each case

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free from any liability or any claim under this Agreement, unless otherwise expressly provided
in this Agreement.

     (c) Securities Matters. The Company shall not be required to issue or deliver any
shares of Common Stock until the requirements of any federal or state securities or other laws,
rules or regulations (including the rules of any securities exchange) as may be determined by the
Company to be applicable are satisfied.

     (d) Headings. Headings are given to the sections and subsections of this Agreement
solely as a convenience to facilitate reference. Such headings shall not be deemed in any way
material or relevant to the construction or interpretation of this Agreement or any provision
hereof.

     (e) Saving Clause. If any provision(s) of this Agreement shall be determined to be
illegal or unenforceable, such determination shall in no manner affect the legality or
enforceability of any other provision hereof.

     (f) Section 409A. The Performance Shares granted hereunder are intended to avoid the
adverse tax consequences to you of Section 409A of the Code. Notwithstanding the foregoing or any
provision of the Plan or this Agreement, if any provision of this Award Agreement contravenes
Section 409A or could cause you to incur any tax, interest or penalties under Section 409A, the
Board of Directors or the Committee, as applicable, may, in its sole discretion, and without your
consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A, or to
avoid the incurrence of any taxes, interest and penalties under Section 409A, and/or (ii) maintain
to the maximum extent practicable, the original intent and economic benefit to you of the
applicable provision without materially increasing the cost to the Company or contravening the
provisions of Section 409A. This Section 10(f) does not create an obligation on the part of the
Company to modify the Plan or this Agreement and does not guarantee that the Performance Shares or
shares of Common Stock distributed hereunder will not be subject to taxes, interest and penalties
under Section 409A.

     (g) Rights as a Stockholder. You shall have no rights as a stockholder of the Company
with respect to any Performance Shares covered by this Agreement until the shares of Common Stock
are issued to you in respect of the Performance Shares.

     (h) Governing Law. The internal law, and not the law of conflicts, of the State of
Maryland will govern all questions concerning the validity, construction and effect of this
Agreement.

     (i) Notices. You should send all written notices regarding this Agreement or the Plan
to the Company at the following address:

Care Investment Trust Inc.

c/o CIT Healthcare LLC

505 Fifth Avenue, 6th Floor

New York, New York 10017

Attn: Chief Financial Officer

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     (j) Benefit and Binding Effect. This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto, their respective successors, permitted assigns, and legal
representatives. The Company has the right to assign this Agreement, and such assignee shall
become entitled to all the rights of the Company hereunder to the extent of such assignment.

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IN WITNESS WHEREOF, the Company by one of its duly authorized officers has executed this Agreement
as of the day and year first above written.

CARE INVESTMENT TRUST INC.

	 	 	 
	 

	By:	/s/ Frank Plens Kafski
	 

	 	 
	 

	 	Chief Financial Officer

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Schedule A

Performance Goals

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Metric	 	Weighting	 	Threshold	 	Target	 	Maximum
	Compound Annual
Adjusted Funds from
Operation/Share
Growth
	 	50%	 		 	5%	 		 	7%	 		 	10%	 	
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Shareholder
Return* vs. Health
Care Equity REITs
(listed on Schedule
B)
	 	25%	 		 	40th percentile	 	Median	 	80th percentile
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Shareholder
Return* vs.
Commercial Mortgage
REITs (listed on
Schedule B)
	 	25%	 		 	40th percentile	 	Median	 	80th percentile

 

			
	*	 	For purposes of calculating “total shareholder return”, the share price to be used as of the
beginning and end of the Award Period, as applicable, shall be the average closing price of a share
(either of Common Stock or of the shares of the companies listed in the comparator groups on
Schedule B) for the twenty (20) days preceding the beginning the Award Period and the twenty (20)
days preceding the end of the Award Period, as applicable.

8

 

Schedule B

Commercial Mortgage REITs

RAIT Financial Trust

Deerfield Triarc Capital Corp.

Newcastle Investment Corp.

Anthracite Capital Inc.

Gramercy Capital Corp.

Northstar Realty

Capital Trust Inc.

Arbor Realty Trust Inc.

JER Investors Trust Inc.

CBRE Realty Finance Inc.

Quadra Realty Trust Inc.

Healthcare Equity REITs

HCP Inc.

Ventas Inc.

Health Care REIT Inc.

Nationwide Health Properties Inc.

Senior Housing Properties Trust

Healthcare Realty Trust Inc.

Omega Healthcare Investors Inc.

Medical Properties Trust Inc.

National Health Investors Inc.

LTC Properties Inc.

Cogdell Spencer Inc.

Universal Health Realty Income Trust

9

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