Document:

Exhibit 4.4

 

FLOATING RATE GLOBAL MEDIUM-TERM NOTE

 

The
following legend is for inclusion only in Book-Entry Securities for which The
Depository Trust Company serves as Depositary — Unless this certificate is
presented by an authorized representative of The Depository Trust Company, a
New York corporation (“DTC”), to the Company or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC and any payment is made to Cede & Co. or to such
other entity as is requested by an authorized representative of DTC, any transfer, pledge or other use hereof for value or otherwise by or
to any Person is wrongful inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

 

The
following legend is for inclusion only in Book-Entry Securities — UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS
NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF
THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

	
  REGISTERED

  	
   

  	
   

  	
   

  	
  PRINCIPAL AMOUNT

  
	
  No. FLR-1

  	
   

  	
  CUSIP NO. 42217J        

  	
   

  	
  $                             

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HEALTH CARE PROPERTY INVESTORS, INC.

  MEDIUM-TERM NOTE, SERIES G

  (Floating Rate)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INTEREST RATE BASIS:

  	
   

  	
  ORIGINAL ISSUE DATE:

  	
   

  	
  STATED MATURITY DATE:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If LIBOR (check
  one)

  	
   

  	
   

  	
   

  	
   

  
	
  LIBOR Reuters

  	
   

  	
  o

  	
   

  	
   

  
	
  LIBOR Telerate

  	
   

  	
  o

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INDEX MATURITY:

  	
   

  	
  INITIAL INTEREST RATE:

  	
   

  	
  INTEREST PAYMENT PERIOD:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REGULAR RECORD
  DATES:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPREAD:

  	
   

  	
  INITIAL INTEREST RESET

  DATE:

  	
   

  	
  INTEREST PAYMENT DATES:

  
											

 

 

	
  SPREAD
  MULTIPLIER:

  	
   

  	
  INTEREST RATE
  RESET

  PERIOD:

  	
   

  	
  INTEREST RESET
  DATES:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MAXIMUM INTEREST

  RATE:

  	
   

  	
  MINIMUM INTEREST
  RATE:

  	
   

  	
  INITIAL
  REDEMPTION DATE:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INITIAL REDEMPTION

  PERCENTAGE:

  	
   

  	
  ANNUAL REDEMPTION

  PERCENTAGE REDUCTION:

  	
   

  	
  OPTIONAL REPAYMENT

  DATE(S):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CALCULATION
  AGENT:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INTEREST CALCULATION

  	
  DAY COUNT CONVENTION

  
	
  o

  	
  Regular Floating Rate Note

  	
  o

  	
  Actual/360 for the period

  
	
  o

  	
  Floating Rate/Fixed Rate

  	
   

  	
  from                   
  to
                    

  
	
   

  	
  Fixed Rate Commencement Date:

  	
  o

  	
  Actual/Actual to
  the period

  
	
   

  	
  Fixed Interest
  Rate:

  	
   

  	
  from                   
  to
                    

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  o

  	
  Inverse Floating Rate Note

  Fixed Interest Rate:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM
  ATTACHED:

  	
  ORIGINAL ISSUE
  DISCOUNT:

  
	
  ý

  	
  Yes

  	
  o

  	
  Yes

  
	
  o

  	
  No

  	
  o

  	
  No

  
	
   

  	
   

  	
  Total Amount of
  OID:

  
	
   

  	
   

  	
  Yield to
  Maturity:

  
	
   

  	
   

  	
  Initial Accrual
  Period:

  
								

 

OTHER PROVISIONS:

 

Each
time the Company files a Pricing Supplement with the Securities and Exchange
Commission, the Pricing Supplement will govern the terms of the issuance of the
Securities and the first two pages of this Floating Rate Global Medium-Term
Note will be completed bearing the nine-digit CUSIP Number and the principal
amount issued. Such Pricing Supplement will be attached to this Floating Rate
Global Medium-Term Note.

 

2

 

HEALTH
CARE PROPERTY INVESTORS, INC., a Maryland corporation (“Issuer” or the “Company,”
which terms include any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the Principal Amount specified above on the Stated Maturity
Date specified above (except to the extent redeemed or repaid prior to the
Stated Maturity Date), and to pay interest thereon, at a rate per annum equal
to the Initial Interest Rate specified above until the Initial Interest Reset
Date specified above and thereafter at a rate per annum determined in
accordance with the provisions hereof and any Addendum relating hereto,
depending upon the Interest Rate Basis or Bases, if any, and such other terms
specified above, until such Principal Amount is paid or duly made available for
payment. Reference herein to “this Note,” “hereof,” “herein” and comparable terms
shall include an Addendum hereto if an Addendum is specified above.

 

The
Company will pay interest monthly, quarterly, semiannually, annually or such
other period as specified above under “Interest Payment Period,” on each
Interest Payment Date specified above, commencing on the first Interest Payment
Date specified above next succeeding the Original Issue Date specified above,
and on the Stated Maturity Date or any Redemption Date or Optional Repayment
Date (the date of each such Stated Maturity Date, Redemption Date and Optional
Repayment Date and the date on which principal or an installment of principal
is due and payable by declaration of acceleration pursuant to the Indenture
being referred to hereinafter as a “Maturity” with respect to principal payable
on such date); provided, however, that if the Original Issue Date
is between a record date (as defined below) and the next succeeding Interest
Payment Date, interest payments will commence on the Interest Payment Date
immediately following the next succeeding record date; and provided, further,
that if an Interest Payment Date (other than an Interest Payment Date at
Maturity) would fall on a day that is not a Business Day (as defined below),
such Interest Payment Date shall be the following day that is a Business Day,
except that in the case the Interest Rate Basis is LIBOR, as indicated above,
if such next Business Day falls in the next calendar month, such Interest
Payment Date shall be the next preceding day that is a Business Day.

 

Except
as provided above, interest payments will be made on the Interest Payment Dates
shown above. Unless otherwise specified above, the “record date” shall be the
date 15 calendar days (whether or not a Business Day) prior to the applicable
Interest Payment Date. Interest on this Note will accrue from and including the
Original Issue Date specified above, at the rates determined from time to time
as specified herein, until the principal hereof has been paid or made available
for payment. If the Maturity falls on a day which is not a Business Day as
defined below, the payment due on such Maturity will be paid on the next
succeeding Business Day with the same force and effect as if made on such
Maturity and no interest shall accrue with respect to such payment for the period
from and after such Maturity. The interest so payable and punctually paid or
duly provided for on any Interest Payment Date will as provided in the
Indenture be paid to the Person in whose name this Note is registered at the
close of business on the record date for such Interest Payment Date. Any such
interest which is payable, but not punctually paid or duly provided for on any
Interest Payment Date (herein called “Defaulted Interest”), shall forthwith
cease to be payable to the registered Holder on such record date, and may be
paid to the Person in whose name this Note is registered at the close of
business on a Special Record Date (which shall be not more than 15 nor less
than ten days prior to the date of payment of such Defaulted Interest) established
by notice given by mail by or on behalf of the

 

3

 

Company
to the Holder of this Note not less than ten days preceding such Special Record
Date, all as more fully provided in the Indenture.

 

Payment
of interest on this Note will be made at the office or agency of the Company
maintained by the Company for such purpose in the Borough of Manhattan, The
City of New York, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts;
provided, however, that at the option of the Company, payment of
interest due other than at Maturity may be made by check mailed to the address
of the Person entitled thereto as such address shall appear in the registry
books of the Company; and provided, further, that the payment of
the principal of and interest on this Note on any Optional Repayment Date(s),
if any, indicated above shall be made upon satisfaction of the provisions
herein; and provided, further, that AT THE OPTION OF THE COMPANY,
the Holder of Notes with an aggregate principal amount of $10,000,000 or more
will be entitled to receive payments of interest on this Note (other than at
Maturity) by wire transfer of immediately available funds if appropriate wire
transfer instructions have been received in writing by the Trustee (as defined
below) not less than 15 days prior to the applicable Interest Payment Date. Such
wire instructions, upon receipt by the Trustee, shall remain in effect until revoked
by such Holder.

 

Payment
of principal or premium, if any, at the Maturity of this Note will be made in
immediately available funds upon presentation of this Note at the office or
agency of the Company maintained by the Company for such purpose in the Borough
of Manhattan, The City of New York, or at such other place as the Company may
designate. Payment of interest due at Maturity will be made to the person to
whom payment of the principal of this Note shall be made.

 

Unless
the certificate of authentication hereon has been executed by or on behalf of
the Trustee under the Indenture, by the manual signature of one of its
authorized signatories, this Note shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose. This Note is one of a
duly authorized series of Securities (hereinafter called the “Securities”) of
the Company designated as its Medium-Term Notes, Series G (the “Notes”). The
Notes are issued and to be issued under an Indenture dated as of
September 1, 1993 (herein called the “Indenture”) between the Company and
The Bank of New York, a corporation incorporated under the laws of the State of
New York, as trustee (the “Trustee,” which term includes any successor trustee
with respect to the Notes under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, duties and obligations thereunder of the Company, the
Trustee and the Holders of the Notes and the terms upon which the Notes are to
be authenticated and delivered. The terms of individual Notes may vary with
respect to interest rates or interest rate formulas, issue dates, maturity,
redemption, repayment and otherwise. The Notes may be issued from time to time
in an aggregate initial offering price up to $400,000,000, which amount may be
increased if duly authorized by the Company.

 

Except
as otherwise provided in the Indenture, this Note will be issued in global form
only registered in the name of the Depositary or its nominee. This Note will
not be issued in definitive form, except as otherwise provided in the
Indenture, and ownership of this Note shall

 

4

 

be
maintained in book-entry form by the Depositary for the accounts of
participating organizations of the Depositary.

 

Unless
otherwise provided above and in accordance with the provisions herein, this
Note is not subject to any sinking fund and is not redeemable or repayable
prior to the Stated Maturity Date.

 

If so
provided above, this Note may be redeemed by the Company on any date on and
after the Initial Redemption Date, if any, specified above. If no Initial
Redemption Date is set forth above, this Note may not be redeemed prior to the
Stated Maturity Date. On and after the Initial Redemption Date, if any, this
Note may be redeemed at any time in whole or from time to time in part in
increments of $1,000 (provided that any remaining principal hereof shall be at
least $1,000) at the option of the Company at the applicable Redemption Price
(as defined below), together with accrued interest hereon at the applicable
rate payable to the date of redemption (each such date, a “Redemption Date”),
on written notice to the Holder hereof given not more than 60 nor less than 30
days prior to the Redemption Date and in accordance with the provisions of the
Indenture. In the event of redemption of this Note in part only, a new Note for
the unredeemed portion hereof shall be issued in the name of the Holder hereof
upon the surrender hereof.

 

Unless
otherwise specified above, the “Redemption Price” shall initially be the
Initial Redemption Percentage, specified above, of the principal amount of this
Note to be redeemed and shall decline at each anniversary of the Initial
Redemption Date, shown above, by the Annual Redemption Percentage Reduction, if
any, specified above, of the principal amount to be redeemed until the
Redemption Price is 100% of such principal amount.

 

This
Note may be subject to repayment at the option of the Holder on any Optional
Repayment Date(s), if any, indicated above. If no Optional Repayment Date(s)
are set forth above, this Note may not be so repaid at the option of the Holder
hereof prior to the Stated Maturity Date. On any Optional Repayment Date, this
Note shall be repayable in whole or in part in increments of $1,000 (provided
that any remaining principal hereof shall be at least $1,000) at the option of
the Holder hereof at a repayment price, unless otherwise specified above, equal
to 100% of the principal amount to be repaid, together with interest thereon
payable to the date of repayment. For this Note to be repaid in whole or in
part at the option of the Holder hereof, this Note must be received, with the
form entitled “Option to Elect Repayment” below duly completed, by the Trustee
at its Corporate Trust Office, or such other address of which the Company shall
from time to time notify the Holders of the Notes, not more than 60 nor less
than 30 days prior to the related Optional Repayment Date. Exercise of such
repayment option by the Holder hereof shall be irrevocable. With respect to
Notes represented by global securities, any option for repayment may be
exercised by the Depositary, on behalf of the owners of the beneficial interest
in the Notes represented by such global securities, by delivering a written
notice substantially similar to the above-referenced form, duly completed, to
the Trustee at the place and within the time period described above. All such
notices shall be irrevocable.

 

The
interest rate borne by this Note shall be determined as follows:

 

5

 

1.             If this Note is designated as a Regular Floating Rate
Note above, then, except as described below, this Note shall bear interest at
the rate determined by reference to the applicable Interest Rate Basis shown
above (i) plus or minus the applicable Spread, if any, and/or (ii) multiplied
by the applicable Spread Multiplier, if any, specified and applied in the
manner described above. Commencing on the Initial Interest Reset Date, the rate
at which interest on this Note is payable shall be reset as of each Interest
Reset Date specified above; provided, however, that (i) the
interest rate in effect for the period from the Original Issue Date to the
Initial Interest Reset Date will be the Initial Interest Rate, and (ii) unless
otherwise specified above, the interest rate in effect hereon for the ten days
immediately prior to Maturity shall be that in effect on the tenth day
preceding such Maturity.

 

2.             If this Note is designated as a Floating Rate/Fixed Rate
Note above, then, except as described below, this Note shall bear interest at
the rate determined by reference to the applicable Interest Rate Basis shown
above (i) plus or minus the applicable Spread, if any, and/or (ii) multiplied
by the applicable Spread Multiplier, if any, specified and applied in the
manner described above. Commencing on the Initial Interest Reset Date, the rate
at which interest on this Note is payable shall be reset as of each Interest
Reset Date specified above; provided, however, that (i) the
interest rate in effect for the period from the Original Issue Date to the
Initial Interest Reset Date shall be the Initial Interest Rate, (ii) unless
otherwise specified above, the interest rate in effect hereon for the ten days
immediately prior to the Fixed Rate Commencement Date shall be that in effect
on the tenth day preceding the Fixed Rate Commencement Date, and (iii) the
interest rate in effect commencing on, and including, the Fixed Rate
Commencement Date to Maturity shall be the Fixed Interest Rate, if such a rate
is specified above, or if no such Fixed Interest Rate is so specified, the
interest rate in effect hereon on the day immediately preceding the Fixed Rate
Commencement Date.

 

3.             If this Note is designated as an Inverse Floating Rate
Note above, then, except as described below, this Note will bear interest equal
to the Fixed Interest Rate indicated above minus the rate determined by
reference to the Interest Rate Basis shown above (i) plus or minus the
applicable Spread, if any, and/or (ii) multiplied by the applicable Spread
Multiplier, if any, specified and applied in the manner described above; provided,
however, that interest on an Inverse Floating Rate Note will not be less
than zero. Commencing on the Initial Interest Reset Date, the rate at which
interest on this Note is payable shall be reset as of each Interest Reset Date
specified above; provided, however, that (i) the interest rate in
effect for the period from the Original Issue Date to the Initial Interest
Reset Date shall be the Initial Interest Rate, and (ii) unless otherwise
specified above, the interest rate in effect hereon for the ten days
immediately prior to Maturity shall be that in effect on the tenth day preceding
such Maturity.

 

4.             Notwithstanding the foregoing, if this Note is
designated above as having an Addendum attached, the Note shall bear interest
in accordance with the terms described in such Addendum.

 

Except
as provided above, the interest rate in effect on each day shall be (a) if such
day is an Interest Reset Date, the interest rate determined as of the Interest
Determination Date (as

 

6

 

defined
below) immediately preceding such Interest Reset Date or (b) if such day is not
an Interest Reset Date, the interest rate determined as of the Interest
Determination Date immediately preceding the next preceding Interest Reset Date.
The interest rate with respect to each Interest Rate Basis shall be determined
in accordance with the applicable provision below. If any Interest Reset Date
(which term includes the term Initial Interest Reset Date unless the context
otherwise requires) would otherwise be a day that is not a Business Day, such
Interest Reset Date shall be postponed to the next succeeding day that is a
Business Day, except that if an Interest Rate Basis specified on the face
hereof is LIBOR and such next Business Day falls in the next succeeding
calendar month, such Interest Reset Date shall be the next preceding Business
Day.

 

Unless
otherwise specified above, interest payable on this Note on any Interest
Payment Date shall be the amount of interest accrued from and including the
next preceding Interest Payment Date in respect of which interest has been paid
(or from and including the Original Issue Date specified above, if no interest
has been paid), to but excluding the related Interest Payment Date; provided,
however, that if the Interest Rate Reset Period with respect to this
Note is daily or weekly, interest payable on any Interest Payment Date will
include interest accrued from and including the Original Issue Date, if no
interest has been paid, or from but excluding the last record date to which
interest has been paid, as the case may be, through and including the record
date next preceding such Interest Payment Date; and provided, further, that the
interest payments on Maturity will include interest accrued to but excluding
the date of Maturity. Unless otherwise specified above, accrued interest hereon
for any period shall be the amount calculated by multiplying the face amount
hereof by an accrued interest factor for such period. Such accrued interest
factor shall be computed by adding the interest factor calculated for each day
in the period for which accrued interest is being calculated. Unless otherwise
specified above, the interest factor for each such day shall be computed by
dividing the interest rate applicable to such day by 360 if the Interest Rate
Basis specified above is the CD Rate, the Commercial Paper Rate, the Eleventh
District Cost of Funds Rate, The Federal Fund Rate, LIBOR or the Prime Rate for
the period specified thereunder or by the actual number of days in the year if
the Interest Rate Basis specified above is the Treasury Rate for the period
specified thereunder. The interest factor for Notes for which the interest rate
is calculated with reference to two or more Interest Rate Bases will be
calculated in each period in the same manner as if only one of the applicable
Interest Rate Bases applied as specified above.

 

Unless
otherwise specified above, the “Interest Determination Date” with respect to
the Federal Funds Rate and the Prime Rate will be the Business Day immediately
preceding each Interest Reset Date; the “Interest Determination Date” with
respect to the CD Rate and the Commercial Paper Rate will be the second
Business Day preceding each Interest Reset Date; the “Interest Determination
Date” with respect to LIBOR shall be the second London Business Day (as defined
below) preceding each Interest Reset Date; the “Interest Determination Date”
with respect to the Eleventh District Cost of Funds Rate shall be the last
working day of the month immediately preceding each Interest Reset Date on
which the Federal Home Loan Bank of San Francisco (the “FHLB of San Francisco”)
publishes the Index (as defined below); the “Interest Determination Date” with
respect to the Treasury Rate will be the day in the week in which the related
Interest Reset Date falls on which day Treasury Bills (as defined below)
normally would be auctioned (Treasury Bills are normally sold at auction on
Monday of each week, unless that day is a legal holiday, in which case the
auction is normally held on the following Tuesday,

 

7

 

except
that such auction may be held on the preceding Friday); provided, however,
that if an auction is held on the Friday of the week preceding the related
Interest Reset Date, the related Interest Determination Date shall be such preceding
Friday; and provided, further, that if an auction shall fall on
any Interest Reset Date, then the Interest Reset Date shall instead be the
first Business Day following such auction. If the interest rate of this Note is
determined with reference to two or more Interest Rate Bases, the Interest
Determination Date pertaining to this Note will be the latest Business Day
which is at least two Business Days prior to such Interest Reset Date on which
each Interest Rate Basis shall be determinable. Each Interest Rate Basis shall
be determined on such date, and the applicable interest rate shall take effect
on the related Interest Reset Date.

 

Unless
otherwise specified above, the “Calculation Date” pertaining to any Interest
Determination Date will be the earlier of (i) the tenth calendar day after such
Interest Determination Date or; if such day is not a Business Day, the next
succeeding Business Day or (ii) the Business Day preceding the applicable
Interest Payment Date or Maturity, as the case may be. All calculations on this
Note shall be made by the Calculation Agent specified above or such successor
thereto as is duly appointed by the Company.

 

All
percentages resulting from any calculation on this Note will be rounded, if
necessary, to the nearest one hundred-thousandth of a percentage point, with
five one millionths of a percentage point rounded upwards (e.g.,
9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655)), and all
dollar amounts used in or resulting from such calculation will be rounded to
the nearest cent (with one-half cent being rounded upward).

 

As
used herein, “Business Day” means, unless otherwise specified above, any day,
other than Saturday or Sunday, that is neither a legal holiday nor a day on
which banking institutions are authorized or required by law, regulation or
executive order to close in The City of New York and, if the Interest Rate
Basis shown above is LIBOR, is also a London Business Day.

 

As
used herein, “London Business Day” means any day on which dealings in deposits
of United States dollars are transacted in the London interbank market.

 

Determination
of CD Rate. The
CD Rate means, with respect to any Interest Determination Date relating to a
Note for which the Base Rate is the CD Rate or any Interest Determination Date
for a Note for which the interest rate is determined with reference to the CD
Rate (a “CD Rate Interest Determination Date”), the rate on such date for
negotiable United States dollar certificates of deposit having the Index
Maturity specified above as published by the Board of Governors of the Federal
Reserve System in “Statistical Release H.15(519), Selected Interest Rates” or
any successor publication (“H.15(519)”) under the caption “CDs (secondary
market)”, or, if not published by 3:00 P.M., New York City time, on the related
Calculation Date, the rate on such CD Rate Interest Determination Date for
negotiable United States dollar certificates of deposit of the Index Maturity
specified above as published in the daily update of H.15(519), available
through the world-wide-web site of the Board of Governors of the Federal
Reserve System at http://www.federalreserve.gov/releases/h15/update, or any
successor site or publication (“H.15 Daily Update”) or other recognized
electronic source used for the purpose of displaying the applicable rate, under
the caption “CDs (secondary market).”  If
such rate is not yet published in either H.15(519) or the H.15 Daily Update by
3:00 P.M., New York City time,

 

8

 

on the
related Calculation Date, then the CD Rate on such CD Rate Interest
Determination Date will be calculated by the Calculation Agent and will be the
arithmetic mean of the secondary market offered rates as of 10:00 A.M., New
York City time, on such CD Rate Interest Determination Date, of three leading
non-bank dealers in negotiable United States dollar certificates of deposit in the
United States selected by the Calculation Agent (after consultation with the
Company) for negotiable United States dollar certificates of deposit of major
United States money market banks for negotiable United States certificates of
deposit with a remaining maturity closest to the Index Maturity designated
above in an amount that is representative for a single transaction in that
market at that time; provided, however, that if the dealers
selected as aforesaid by the Calculation Agent are not quoting as set forth
above, the CD Rate determined as of such CD Rate Interest Determination Date
shall be the CD Rate in effect on such CD Rate Interest Determination Date.

 

Determination
of Commercial Paper Rate. The Commercial Paper Rate means, with respect to any Interest
Determination Date relating to a Note for which the Base Rate is the Commercial
Paper Rate or any Interest Determination Date for a Note for which the interest
rate is determined with reference to the Commercial Paper Rate (a “Commercial
Paper Rate Interest Determination Date”), the Money Market Yield (as defined
below) on such date of the rate for commercial paper having the Index Maturity
specified above as published in H.15(519), under the caption “Commercial
Paper-Nonfinancial.”  In the event such
rate is not published by 3:00 P.M., New York City time, on the related
Calculation Date, then the Commercial Paper Rate shall be the Money Market
Yield on such Commercial Paper Rate Interest Determination Date of the rate for
commercial paper having the Index Maturity shown above as published in H.15
Daily Update, or such other recognized electronic source used for the purpose
of displaying the applicable rate under the caption “Commercial
Paper-Nonfinancial” (with an Index Maturity of one month or three months being
deemed to be equivalent to an Index Maturity of 30 days or 90 days,
respectively). If by 3:00 P.M., New York City time, on the related Calculation
Date such rate is not yet published in either H.15(519) or H.15 Daily Update,
then the Commercial Paper Rate on such Commercial Paper Rate Interest
Determination Date shall be calculated by the Calculation Agent and shall be
the Money Market Yield of the arithmetic mean of the offered rates at
approximately 11:00 A.M., New York City time, on such Commercial Paper Rate
Interest Determination Date of three leading dealers of United States dollar
commercial paper in the United States selected by the Calculation Agent (after
consultation with the Company) for commercial paper having the Index Maturity
specified above placed for industrial issuers whose bond rating is “Aa,” or the
equivalent, from a nationally recognized statistical rating organization; provided,
however, that if the dealers selected as aforesaid by the Calculation
Agent are not quoting as mentioned in this sentence, the Commercial Paper Rate
determined on such Commercial Paper Rate Interest Determination Date shall be
the Commercial Paper Rate in effect on such Commercial Paper Rate Interest
Determination Date.

 

“Money
Market Yield” shall be a yield (expressed as a percentage) calculated in
accordance with the following formula:

 

	
  Money Market Yield =

  	
   

  	
  D x 360

  	
   

  	
  x 100

  
	
   

  	
  360
  - (D x M)

  	
   

  

 

9

 

where “D” refers to the applicable per annum rate for
commercial paper quoted on a bank discount basis and expressed as a decimal and
“M” refers to the actual number of days in the applicable Interest Rate Reset
Period.

 

Determination
of Eleventh District Cost of Funds Rate. The Eleventh District Cost of Funds Rate means, with
respect to any Interest Determination Date relating to a Note for which the
Base Rate is the Eleventh District Cost of Funds Rate or any Interest
Determination Date for a Note for which the interest rate is determined with
reference to the Eleventh District Cost of Funds Rate (an “Eleventh District
Cost of Funds Rate Interest Determination Date”), the rate equal to the monthly
weighted average cost of funds for the calendar month immediately preceding
such Eleventh District Cost of Funds Rate Interest Determination Date as set
forth under the caption “11th District” on Moneyline Telerate, or any successor
service, on Page 7058 or any other page as may replace the specified page on
that service (“Moneyline Telerate Page 7058”), as of 11:00 A.M., San Francisco
time, on such Eleventh District Cost of Funds Rate Interest Determination Date.
If such rate does not appear on Moneyline Telerate Page 7058 on any related
Eleventh District Cost of Funds Rate Interest Determination Date, the Eleventh
District Cost of Funds Rate for such Eleventh District Cost of Funds Rate
Interest Determination Date shall be the monthly weighted average cost of funds
paid by member institutions of the Eleventh Federal Home Loan Bank District
that was most recently announced (the “Index”) by the FHLB of San Francisco as
such cost of funds for the calendar month immediately preceding such Eleventh
District Cost of Funds Rate Interest Determination Date. If the FHLB of San
Francisco fails to announce the Index on or prior to such Eleventh District
Cost of Funds Rate Interest Determination Date for the calendar month next
preceding such Eleventh District Cost of Funds Rate Interest Determination
Date, then the Eleventh District Cost of Funds Rate for such Eleventh District
Cost of Funds Rate Interest Determination Date shall be the Eleventh District
Cost of Funds Rate in effect on such Eleventh District Cost of Funds Rate
Interest Determination Date.

 

Determination
of Federal Funds Rate. The Federal Funds Rate means, with respect to any Interest
Determination Date relating to a Note for which the Base Rate is the Federal
Funds Rate or any Interest Determination Date for a Note for which the interest
rate is determined with reference to the Federal Funds Rate (a “Federal Funds
Rate Interest Determination Date”), the rate on that date for United States
dollar federal funds as published in H.15(519) under the caption “Federal Funds
(Effective)” and displayed on Moneyline Telerate (or any successor service) on
page 120 (or any other page as may replace the specified page on that service)
(“Moneyline Telerate Page 120”). In the event such rate does not appear on
Moneyline Telerate Page 120 or is not published by 3:00 P.M., New York City
time, on the related Calculation Date, the rate on such Federal Funds Rate
Interest Determination Date for United States dollar federal funds as published
in H.15 Daily Update, or such other recognized electronic source used for the
purpose of displaying the applicable rate, under the caption “Federal Funds
(Effective).”  If by 3:00 P.M., New York
City time, on the related Calculation Date such rate is not published in H.15
Daily Update, then the Federal Funds Rate on such Federal Funds Rate Interest
Determination Date shall be calculated by the Calculation Agent and shall be
the arithmetic mean of the rates for the last transaction in overnight United
States dollar federal funds arranged by three leading brokers of United States
dollar federal funds transactions in the United States, selected by the
Calculation Agent (after consultation with the Company) prior to 9:00 A.M., New
York City time, on such Federal Funds Rate Interest Determination Date; provided,

 

10

 

however, that if the brokers selected as
aforesaid by the Calculation Agent are not quoting as mentioned in this
sentence, the Federal Funds Rate with respect to such Federal Funds Rate
Interest Determination Date shall be the Federal Funds Rate in effect on such
Federal Funds Rate Interest Determination Date.

 

Determination
of LIBOR. If an
Interest Rate Basis for this Note is LIBOR, as indicated above, LIBOR will be
determined by the Calculation Agent on the applicable Interest Determination
Date (a “LIBOR Interest Determination Date”), as follows:

 

(a)           (i) if “LIBOR Moneyline Telerate” is
specified above or if neither “LIBOR Reuters” nor “LIBOR Moneyline Telerate” is
specified above, the rate for deposits in the LIBOR Currency (as defined below)
having the Index Maturity specified above, commencing on the Interest Reset
Date, that appears on the LIBOR Page as of 11:00 A.M., London time, on such
LIBOR Interest Determination Date, or (ii) if “LIBOR Reuters” is specified
above, the arithmetic mean of the offered rates calculated by the Calculation
Agent (unless the specified Designated LIBOR Page (as defined below) by its
terms provides only for a single rate, in which case such single rate shall be
used) for deposits in the LIBOR Currency having the Index Maturity specified
above, commencing on the Interest Reset Date, that appear or appears on the
LIBOR Page specified above as of 11:00 A.M., London time, on that LIBOR
Interest Determination Date. If fewer than two offered rates appear, or no rate
appears, as applicable, LIBOR in respect of the related LIBOR Interest
Determination Date will be determined as if the parties had specified the rate
described in paragraph (b) below.

 

(b)           With respect to a LIBOR Interest
Determination Date on which fewer than two offered rates appear, or no rate
appears, as the case may be, on the LIBOR Interest Determination Date on the
LIBOR Page as specified above, the Calculation Agent shall request the
principal London offices of each of four major reference banks in the London
interbank market, as selected by the Calculation Agent (after consultation with
the Company), to provide the Calculation Agent with its offered quotation for
deposits in the LIBOR Currency for the period of the Index Maturity shown
above, commencing on the Interest Reset Date, to prime banks in the London
interbank market at approximately 11:00 A.M., London time, on such LIBOR
Interest Determination Date and in a principal amount that is representative
for a single transaction in the LIBOR Currency in such market at such time. If
at least two such quotations are provided, LIBOR determined on such LIBOR
Interest Determination Date shall be the arithmetic mean of such quotations as
determined by the Calculation Agent. If fewer than two quotations are provided,
LIBOR determined on such LIBOR Interest Determination Date shall be calculated
by the Calculation Agent as the arithmetic mean of the rates quoted at
approximately 11:00 A.M. in the applicable principal financial center, on such
LIBOR Interest Determination Date by three major banks in that principal
financial center selected by the Calculation Agent (after consultation with the
Company) for loans in the LIBOR Currency to leading European banks, having the
Index Maturity specified above and in a principal amount that is representative
for a single transaction in the LIBOR Currency in such market at such time; provided,
however, that if the banks selected as aforesaid by the Calculation
Agent are not quoting as mentioned in this sentence, LIBOR determined on such
LIBOR Interest Determination Date shall be LIBOR in effect on such LIBOR
Interest Determination Date.

 

11

 

“LIBOR
Currency” means the currency specified above as to which LIBOR shall be
calculated or, if no currency is specified above, United States dollars.

 

“LIBOR
Page” means either (a) if “LIBOR Reuters” is specified above, the display on
the Reuter Monitor Money Rates Service (or any successor service) on the page
specified above (or any other page as may replace such page on such service)
for the purpose of displaying the London interbank rates of major banks for the
LIBOR Currency or (b) if “LIBOR Moneyline Telerate” is specified above or
neither “LIBOR Reuters” nor “LIBOR Moneyline Telerate” is specified above as
the method for calculating LIBOR, the display on the Moneyline Telerate (or any
successor service) on the page specified above (or any other page as may replace
such page on such service) for the purpose of displaying the London interbank
rates of major banks for the LIBOR Currency.

 

Determination
of Prime Rate. The
Prime Rate means, with respect to any Interest Determination Date relating to a
Note for which the Base Rate is the Prime Rate or any Interest Determination
Date for a Note for which the interest rate is determined with reference to the
Prime Rate (a “Prime Rate Interest Determination Date”), the rate on such date
as such rate is published in H.15(519) under the caption “Bank Prime Loan.”  If such rate is not published prior to 3:00
P.M., New York City time, on the related Calculation Date, the rate on the
Interest Determination Date as published in H.15 Daily Update, or such other
recognized electronic source used for the purpose of displaying the applicable
rate, under the caption “Bank Prime Loan”. If such rate is not published by
3:00 P.M., New York City time, on the related Calculation Date, then the Prime
Rate shall be determined by the Calculation Agent and shall be the arithmetic
mean of the rates of interest publicly announced by each bank that appears on
the Reuters Screen US PRIME 1 Page (as defined below) as such bank’s prime rate
or base lending rate as in effect as of 11:00 A.M., New York City time on that
Prime Rate Interest Determination Date. If fewer than four such rates appear on
the Reuters Screen US PRIME 1 Page for such Prime Rate Interest Determination
Date, the Prime Rate shall be determined by the Calculation Agent and shall be
the arithmetic mean of the prime rates or base lending rates quoted on the
basis of the actual number of days in the year divided by a 360-day year as of
the close of business on such Prime Rate Interest Determination Date by three
major banks in the United States selected by the Calculation Agent (after
consultation with the Company); provided, however, that if the
banks selected as aforesaid by the Calculation Agent are not quoting as
mentioned in this sentence, the Prime Rate for such Prime Rate Interest
Determination Date will be the Prime Rate in effect on such Prime Rate Interest
Determination Date.

 

“Reuters
Screen US PRIME 1 Page” means the display on the Reuter Monitor Money Rates
Service (or any successor service) on the “US PRIME 1” page (or such other page
as may replace the US PRIME 1 page on such service) for the purpose of
displaying prime rates or base lending rates of major United States banks.

 

Determination
of Treasury Rate. The Treasury Rate means, with respect to
any Interest Determination Date relating to a Note for which the Base Rate is
the Treasury Rate or any Interest Determination Date for a Note for which the
interest rate is determined with reference to the Treasury Rate (a “Treasury
Rate Interest Determination Date”), the rate applicable to the auction held on
such Treasury Rate Interest Determination Date (the “Auction”) of direct
obligations of the United States (“Treasury Bills”) having the Index Maturity
specified above,

 

12

 

under
the caption “INVESTMENT RATE” on the display on Moneyline Telerate (or any
successor service) on page 56 (or any other page as may replace that page on
that service) (“Moneyline Telerate Page 56”) or page 57 (or any other page as
may replace that page on that service) (“Moneyline Telerate Page 57”), or if
such rate is not published by 3:00 P.M., New York City time, on the related
Calculation Date, the Bond Equivalent Yield (as defined below) of the rate for
the applicable Treasury Bills as published in H.15 Daily Update, or another
recognized electronic source used for the purpose of displaying the applicable
rate, under the caption “U.S., Government Securities/Treasury Bills/Auction
High”. In the event such rate is not published by 3:00 P.M., New York City
time, on the related Calculation Date, then the Treasury Rate on such Treasury
Interest Determination Date will be the Bond Equivalent Yield of the auction
rate of the applicable Treasury Bills as announced by the United States
Department of the Treasury, or if such rate is not so announced by the United
States Department of the Treasury, or if the Auction is not held, the Bond
Equivalent Yield of the rate on the particular Interest Determination Date of
the applicable Treasury Bills as published in H.15(519) under the caption “U.S.
Government Securities/Treasury Bills/Secondary Market”. In the event such rate
is not published by 3:00 P.M., New York City time, then the Treasury Rate on
such Treasury Interest Determination Date will be the rate of the applicable
Treasury Bills having the Index maturity specified above as published in H.15
Daily Update, or another recognized electronic source used for the purpose of
displaying the applicable rate, under the caption “U.S. Government
Securities/Treasury Bills/Secondary Market”, or if such rate is not published
by 3:00 P.M., New York City time, on the related Calculation Date, the rate on
the particular Treasury Rate Interest Determination Date calculated by the
Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the
secondary market bid rates, as of approximately 3:30 P.M., New York City time,
on such Treasury Rate Interest Determination Date, of three primary United
States government securities dealers selected by the Calculation Agent (after
consultation with the Company), for the issue of Treasury Bills with a
remaining maturity closest to the Index Maturity specified above; provided,
however, that if the dealers selected as aforesaid by the Calculation
Agent are not quoting as mentioned in this sentence, the Treasury Rate with
respect to such Treasury Rate Interest Determination Date will be the Treasury
Rate in effect on such Treasury Rate Interest Determination Date.

 

“Bond Equivalent Yield” means a yield (expressed as a
percentage) calculated in accordance with the following formula:

 

	
  Bond Equivalent 

  	
   

  	
  D X N

  	
   

  	
  X 100

  
	
  Yield =

  	
   

  	
  360
  - (D X M)

  	
   

  	
   

  

 

where “D” refers to the
applicable per annum rate for Treasury Bills quoted on a bank discount basis
and expressed as a decimal, “N” refers to 365 or 366, as the case may be, and “M”
refers to the actual number of days in the applicable interest reset period.

 

Any
provision contained herein with respect to the determination of an Interest
Rate Basis, the specification of an Interest Rate Basis, calculation of the
Interest Rate applicable to this Note, its payment dates or any other matter
relating hereto may be modified as specified in an Addendum relating hereto if
so specified above.

 

13

 

Notwithstanding
the foregoing, the interest rate hereon shall not be greater than the Maximum
Interest Rate, if any, or less than the Minimum Interest Rate, if any,
specified above. The Calculation Agent shall calculate the interest rate hereon
in accordance with the foregoing on or before each Calculation Date. The
interest rate on this Note will in no event be higher than the maximum rate
permitted by New York law, as the same may be modified by United States law of
general application.

 

At the
request of the Holder hereof, the Calculation Agent shall provide to the Holder
hereof the interest rate hereon then in effect and, if determined, the interest
rate which shall become effective as of the next Interest Reset Date.

 

The
Notes shall have the Events of Default as set forth in Section 501 of the
Indenture. If an Event of Default with respect to the Notes shall occur and be
continuing, the principal of all the Notes may be declared due and payable in
the manner and with the effect provided in the Indenture.

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities of each series to be affected under
the Indenture at any time by the Company and the Trustee with the consent of
the Holders of 66 2/3% in aggregate principal amount of the Outstanding
Securities of each series affected thereby. The Indenture also contains
provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Note shall be conclusive and binding upon such Holder and upon
all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent or waiver is made upon this Note.

 

This
Note is subject to satisfaction, discharge and defeasance as provided in
Article Four of the Indenture.

 

No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of, premium, if any, and
interest on this Note at the time, place and rate, and in the coin or currency,
herein prescribed.

 

The
Indenture contains provisions, which provisions apply to the Notes, for (i) the
defeasance of the indebtedness evidenced by the Notes and (ii) the satisfaction
and discharge of the Indenture, in each case upon compliance with certain
conditions, and subject to certain exceptions, set forth in the Indenture.

 

As
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Note may be registered on the registry books of the
Company, upon surrender of this Note for registration of transfer at the office
or agency of the Company maintained by the Company for such purpose in the
Borough of Manhattan, The City of New York, duly endorsed

 

14

 

by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder hereof or by its attorney
duly authorized in writing, and thereupon one or more new Notes, of authorized
denominations and for the same aggregate principal amount, having the identical
Original Issue Date, Stated Maturity and provisions with respect to payment of
interest and redemption or repayment prior to Stated Maturity will be issued to
the designated transferee or transferees.

 

The
Notes are issuable only in registered form without coupons in denominations of
$1,000 and integral multiples thereof. As provided in the Indenture and subject
to certain limitations therein set forth, the Notes are exchangeable for a like
aggregate principal amount of Notes as requested by the Holder surrendering the
same.

 

No
service charge shall be made by the Company or the Trustee for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith (other than exchanges pursuant to the Indenture
not involving any transfer).

 

Prior
to due presentment of this Note for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Note is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Company, the Trustee nor
any such agent shall be affected by notice to the contrary.

 

If
money for the payment of principal or interest remains unclaimed for three
years, the Trustee or any paying agent will pay the money back to the Company
at its request. After any such payment, Holders entitled to the money as an unsecured
creditor, must look to the Company for payment and all liability of the Trustee
or such paying agent with respect to such money shall cease.

 

The
terms of this Note include those stated in the Indenture and those made part of
the Indenture by the Officers’ Certificate delivered pursuant thereto and the
Trust Indenture Act. This Note is subject to all such terms, and Noteholders
are referred to the Indenture and said Act for a statement of them.

 

No
stockholder, director, officer, employee or incorporator as such, past, present
or future, of the Company or any successor corporation shall have any liability
for any obligations of the Company under this Note or the Indenture or for any
claim based on, or in respect of or by reason of, such obligations or their
creation. Each holder of a Note by accepting a Note waives and releases all
such liability. The waiver and release are part of the consideration for the
issue of this Note.

 

The
Trustee under the Indenture, in its individual or any other capacity, may deal
with the Company as if it were not Trustee.

 

This
Note shall be governed by and construed in accordance with the laws of the
State of California.

 

All
terms used in this Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

 

15

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed,
manually or in facsimile, and an imprint or facsimile of its corporate seal to
be imprinted hereon.

 

	
  [FACSIMILE OF SEAL]

  	
  HEALTH CARE
  PROPERTY

  INVESTORS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Mark Wallace

  
	
   

  	
   

  	
  Senior Vice
  President and

  
	
   

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Edward J.
  Henning

  	
   

  
	
   

  	
  Senior Vice
  President, General

  Counsel and Corporate Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:                            ,
  2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CERTIFICATE OF
  AUTHENTICATION

  	
   

  	
   

  
	
  This is one of
  the Securities of the series designated herein referred to in the
  within-mentioned Indenture.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE BANK OF NEW
  YORK

  	
   

  	
   

  
	
  as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  	
   

  
							

 

 

OPTION TO ELECT
REPAYMENT

 

The
undersigned hereby irrevocably request(s) and instruct(s) the Company to repay
this Note (or portion hereof specified below) pursuant to its terms at a price
equal to the principal amount hereof together with interest to the repayment
date, to the undersigned, at

                                                                                                                                                                                                                    

                                                                                                                                                                                                                   .

(Please print or typewrite name and address of the undersigned)

 

For
this Note to be repaid, the Trustee must receive at its Corporate Trust Office,
or at such other place or places of which the Company shall from time to time
notify the Holder of this Note, not more than 60 nor less than 30 days prior to
the Optional Repayment Date, if any, shown on the face of this Note, this Note
with this “Option to Elect Repayment” form duly completed.

 

If
less than the entire principal amount of this Note is to be repaid, specify the
portion hereof (which shall be increments of $1,000) which the Holder elects to
have repaid $                                        
and specify the denomination or denominations (which shall be $1,000 or an
integral multiple thereof) of the Notes to be issued to the Holder for the
portion of this Note not being repaid (in the absence of any such
specification, one such Note will be issued for the portion not being repaid) $                                        .

 

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
  The signature on
  this Option to Elect Repayment must correspond with the name as written upon
  the face of this Note in every particular, without alteration or enlargement
  or any change whatever.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

17

 

ASSIGNMENT/TRANSFER
FORM

 

FOR
VALUE RECEIVED the undersigned registered Holder hereby sell(s), assign(s) and
transfer(s) unto (insert Taxpayer Identification no.)                                                                                                                                                                                         

(Please print or typewrite name and address including
postal zip code of assignee)                                                                                  

                                                                                                                                                                                                                     

the within Note and all rights thereunder, hereby
irrevocably constituting and appointing                                                                       

                                                                                                                                                                                                                       

attorney to transfer said Note on the books of the
Company with full power of substitution in the premises.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  
	
  NOTICE:

  	
  The signature of the registered Holder on this
  assignment must correspond with the name as written upon the face of the
  within instrument in every particular, without alteration or enlargement or
  any change whatsoever.

  
	
   

  
	
  Signature
  Guarantee:

  
	
   

  
	
   

  
					

 

18

 

ABBREVIATIONS

 

The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full
according to applicable laws or regulations.

 

	
  TEN COM — as
  tenants in common

  	
   

  	
   

  
	
  UNIF GIFT MIN
  ACT —

  	
                                                  
  Custodian                                      

  	
   

  	
   

  
	
   

  	
  (cust)

  	
  (Minor)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Under Uniform
  Gifts to Minors Act

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (State)

  	
   

  	
   

  
										

 

TEN ENT — as tenants by
the entireties

JT TEN — as joint tenants with right of survivorship
and not as tenants in common

 

Additional
abbreviations may also be used though not in the above list.

 

19Exhibit 10.1

    
      

    

    EXHIBIT
      10.1

    

    STOCK
      OPTION AWARD AGREEMENT

    PNM
      RESOURCES, INC. 

    OMNIBUS
      PERFORMANCE EQUITY PLAN

     

    PNM
      Resources, Inc., a New Mexico corporation (“PNM” or the “Company”), hereby
      awards to «Name»
      (the
“Optionee”), an employee of the Company and a Participant in the PNM Resources,
      Inc. Omnibus Performance Equity Plan (the “Plan”), as it may be amended, a
      non-qualified stock option (“Option” or “Options”) to purchase up to, but not to
      exceed in the aggregate «NonQualified_Stock_Options_»
      shares
      of Common Stock of the Company (“Stock”), at an Exercise Price of $27.52
      per share,
      subject
      to the following terms and conditions. The grant is given effective as of the
      17th
      day of
      May, 2005 (the “Grant Date”).

     

    Capitalized
      terms used in this Stock Option Award Agreement (the “Agreement”) and not
      otherwise defined herein shall have the meanings given to such terms in the
      Plan.

     

    1.  Grant.
      This
      Option is granted pursuant to the Plan, the terms of which are hereby
      incorporated by reference.

     

    2.  Vesting.

     

    (a) Except
      as
      set forth herein below, these Options shall vest in the following manner: (i)
      at
      the end of the first anniversary of the Grant Date, 33%; (ii) at the end of
      the
      second anniversary of the Grant Date, 66%; and, (iii) at the end of the third
      anniversary of the Grant Date, 100%.

     

    (b) Upon
      (i)
      the death, Disability or Retirement of the Optionee, (ii) a Change in Control
      of
      the Company, or (iii) events resulting in full vesting as otherwise described
      in
      Section 13.1 of the Plan, the Option, if not previously vested, shall be 100%
      vested.

     

    (c) Upon
      the
      involuntary or voluntary termination of employment of an Optionee for reasons
      other than those set forth in Subparagraph (b) above, the Option, if not
      previously vested, shall be canceled.

     

    (d) Upon
      termination of employment with the Company for Cause, all Options (vested and
      nonvested) shall be terminated and forfeited immediately.

     

    3.  Exercise
      of Options.

     

    (a) Timing
      of Exercise.
      Generally, the vested Options shall be exercisable at any time following the
      vesting thereof, on or before the earlier of (i) three (3) months following
      an
      Optionee’s voluntary termination or involuntary termination of employment with
      the Company for reasons other than Impaction or Cause; (ii) three (3) years
      following an Optionee’s termination due to Death, Disability, Retirement,
      Impaction or Change In Control of the Company; or (iii) the tenth anniversary
      date of the Grant Date of the Options. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Optionee
      is responsible for ascertaining the times and conditions applicable to the
      exercise of each Grant of Options awarded under the Plan.

     

    (b) Time
      and Method of Payment.
      The
      Options shall be exercised by the Optionee giving written notice to the Company
      of his or her intent to exercise Options, along with the tendering of cash
      in
      full payment of the Exercise Price of the Options being exercised, times the
      number of such Options being exercised. Alternatively, in lieu of cash, the
      Exercise Price may be paid, in full or in part by the Optionee, by delivery
      to
      the Company (through actual tender or by attestation), of Stock of the Company
      owned by the Optionee for more than six months. The amount credited against
      the
      Exercise Price for Stock being assigned and delivered to the Company shall
      equal
      the Fair Market Value of the Stock on the date of transfer times the number
      of
      shares being assigned and delivered. For
      Optionees subject to Section 16 of the Exchange Act and key employees as
      specified in the Insider Trading Policy, pre-clearance for sales of stock
      (including a “cashless exercise”) shall be obtained from the Senior Vice
      President and General Counsel at PNM Resources, Inc., Alvarado Square,
      Albuquerque, New Mexico 87158, or his/her successor.

     

    (c) Exercise
      Following Optionee’s Death.
      If an
      Optionee dies, whether or not the Optionee is an employee of the Company at
      the
      date of such death, without having fully exercised his or her vested Options,
      the personal representative or the person receiving such Options from the
      Optionee or his or her estate shall have the right to exercise the Options
      pursuant to the timing and methods set forth in Subparagraphs (a) and (b)
      above.

     

    (d) Delivery
      of Shares.
      Within
      an administratively reasonable period of time after the exercise of an Option
      and the payment of the full Exercise Price, and after satisfaction of all
      applicable withholding requirements, the Optionee shall receive a Stock
      certificate evidencing his or her ownership of such Stock. An Optionee shall
      have none of the rights of a shareholder with respect to Options until the
      date
      a Stock certificate is issued in the Optionee’s name. No adjustment will be made
      for dividends or other rights for which the record date is prior to the date
      such Stock certificate is dated.

     

    (e) Holding
      Period.
      The
      shares of Stock obtained upon the exercise of any Option granted hereunder
      may
      not, if necessary to meet Rule 16b-3 requirements, be sold by an Optionee
      subject to Section 16 of the Exchange Act until six (6) months after the
      delivery to the Participant of the Stock Option Award Agreement.

     

    4.  Adjustments.
      Neither
      the existence of the Plan nor this Option shall affect, in any way, the right
      or
      power of the Company to make or authorize: any or all adjustments,
      recapitalizations, reorganizations, or other changes in the Company’s capital
      structure or its business; or any merger or consolidation of the Company; or
      the
      dissolution or liquidation of the Company; or any sale or transfer of all or
      any
      part of its assets or business; or any corporate act or proceeding, whether
      of a
      similar character or otherwise; all of which, and the resulting adjustments
      in,
      or impact on, the Option are more fully defined in Section 5.3 of the
      Plan.

     

    5.  Withholding
      and Deductions.
      The
      Company shall have the right to deduct from any payments made by the Company
      to
      the Optionee, any federal, state or local taxes of any kind 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    as
      are
      required by law to be withheld with respect to the exercise of Options granted
      hereunder, or to take such other actions as may be necessary in the opinion
      of
      the Company to satisfy all obligations for withholding and payment of such
      taxes, including, in its sole discretion, and subject to the provisions of
      applicable law and to any conditions the Committee may determine to be necessary
      in order to comply with all applicable conditions of Rule 16b-3 or its
      successors under the Exchange Act, to permit the Optionee to satisfy, in whole
      or in part, any tax withholding obligation which may arise in connection with
      the exercise of Options by electing to have the Company withhold shares of
      Stock
      having a Fair Market Value of the Stock equal to the amount of the income tax
      withholding. Any potential payment to the Optionee under the terms of this
      Agreement is also subject to withholdings and deductions by the Company, and
      the
      Optionee hereby authorizes the Company, to apply such withholdings and
      deductions to liquidate and reduce any outstanding debt or unpaid sums owed
      by
      the Optionee to the Company or its successor.

     

    6.  Compliance
      with Exchange Act.
      With
      respect to Optionees subject to Section 16 of the Exchange Act, Options granted
      or exercised pursuant to this Award are intended to comply with all applicable
      conditions of Rule 16b-3 or its successors under the Exchange Act.

     

    7.  Non-Assignability.
      Options
      shall not be transferable other than by will or by the laws of descent and
      distribution, and during Optionee’s lifetime shall be exercisable only by the
      Optionee. The Options are otherwise non-assignable. (See Section 13 of the
      Plan).

     

    8.  Optionee
      Representation.
      As a
      condition to the exercise of any Option, the Company may require a
      representation from the person exercising the Option that the Stock is being
      acquired only for investment purposes and without any present intention to
      sell
      or distribute such shares. 

     

    9.  Employment
      Agreement.
      Notwithstanding anything to the contrary herein contained in this Agreement,
      (a)
      neither the Plan nor this Agreement is intended to create an express or implied
      contract of employment for a specified term between the Optionee and the Company
      and (b) unless otherwise expressed or provided, in writing, by an authorized
      officer, the employment relationship between the Optionee and the Company shall
      be defined as “employment at will” wherein either party, without prior notice,
      may terminate the relationship with or without cause.

     

    10.  Regulatory
      Approvals and Listing.
      The
      Company shall not be required to issue any certificate for shares of Stock
      upon
      the exercise of an Option granted under the Agreement prior to satisfying any
      regulatory or registration approval, qualification or ruling from the Securities
      and Exchange Commission, the Internal Revenue Service or any other governmental
      agency which the Committee, in its sole discretion, shall determine to be
      necessary or advisable. (See Section 19.1 of the Plan). 

     

    11.  Nonstatutory
      Stock Option.
      The
      Options granted hereunder are nonstatutory (non-qualified) stock options, and
      are not “incentive stock options” pursuant to the Code. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    12.  Administration.
      This
      Agreement shall at all times be subject to the terms and conditions of the
      Plan
      and the Plan shall in all respects be administered by the Committee in
      accordance with the terms of and as provided in the Plan. The Committee shall
      have the sole and complete discretion with respect to the interpretation of
      this
      Agreement and the Plan, and all matters reserved to it by the Plan. The
      decisions of the majority of the Committee with respect thereto and to this
      Agreement shall be final and binding upon Optionee and the Company. In the
      event
      of any conflict between the terms and conditions of this Agreement and the
      Plan,
      the provisions of the Plan shall control

     

    13.  Waiver
      and Modification.
      The
      provisions of this Agreement may not be waived or modified unless such waiver
      or
      modification is in writing signed by the Company. 

     

    14.  Validity
      and Construction.
      The
      validity and construction of this Option shall be governed by the laws of the
      state of New Mexico.

     

    MANY
      OF THE PROVISIONS OF THIS AWARD AGREEMENT ARE SUMMARIES OF SIMILAR PERTINENT
      PROVISIONS OF THE PLAN. TO THE EXTENT THIS AGREEMENT IS SILENT
ON
      AN ISSUE OR THERE IS A CONFLICT BETWEEN THE PLAN AND THIS AGREEMENT, THE PLAN
      PROVISIONS SHALL CONTROL.

     

    IN
      WITNESS WHEREOF, the Company has caused this Stock Option Award Agreement to
      be
      executed, effective as of May 17, 2005.

     

    PNM
      RESOURCES, INC. 

    

    

    

    By  
      /s/ JEFFRY E. STERBA

    JEFFRY
      E. STERBA

    Chairman,
      President and Chief Executive

    Officer

    

    4

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