Document:

Form of Stock Option Agreement effective 05/07/2003

 EXHIBIT 10.33 
  
 STOCK OPTION AGREEMENT 
  
 TERMS AND CONDITIONS 
 (Rev. May 2003)

  
 These Terms and Conditions constitute a part of the
Stock Option Agreement, dated as of the date set forth on the Signature Page to Stock Option Agreement Terms and Conditions (Rev. May 2003) made a part hereof (the “Signature Page”), concerning certain Options granted by Health Care
Property Investors, Inc., a Maryland corporation hereinafter referred to as “Company,” to the Employee listed on the Signature Page, hereinafter referred to as “Optionee.” These Terms and Conditions and the Signature Page
comprise the Stock Option Agreement and are collectively referred to as this “Agreement.” 
  
 WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase shares of its Common Stock, $1.00 par value per share (“Common
Stock”); 
  
 WHEREAS, the Company wishes to carry out the
Health Care Property Investors, Inc. 2000 Stock Incentive Plan, as amended and/or restated from time to time (the “Plan”), the terms of which are hereby incorporated by reference and made a part of this Agreement; and 
  
 WHEREAS, the Committee has determined that it would be to the advantage and
best interest of the Company and its stockholders to grant the Option provided for herein to the Optionee as an inducement to enter into or remain in the service of the Company and as an incentive for increased efforts during such service, and has
advised the Company thereof and instructed the undersigned officers to issue said Option. 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: 

 
 ARTICLE I. 
  
 DEFINITIONS 
  
 Whenever the following terms are used in this Agreement, they shall have the
meaning specified below unless the context clearly indicates to the contrary. The masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates. Capitalized terms used but not defined in this
Agreement shall have the meaning ascribed to such terms in the Plan. 
  
 Section 1.1. Committee 
  
 “Committee” shall mean the Compensation Committee of the Board (or another committee of the Board assuming the functions of the Committee under the Plan), unless and to the extent the Board has assumed the authority for
administration of all or any part of the Plan as permitted in Section 4(a) of the Plan, and then “Committee” shall mean the Board. 
  

 Section 1.2. Controlling Agreement 
  
 “Controlling Agreement” shall mean any written employment,
severance, change in control or similar agreement or letter between the Company and Optionee providing option terms to Optionee that are in addition to, or more favorable to Optionee, than those set forth in this Agreement. 
  
 Section 1.3. Disability 
  
 “Disability” shall mean the total and permanent incapacity of
Optionee due to physical impairment or legally established mental incompetence, to perform the usual duties of an Employee, which disability shall be determined on the basis of (i) medical evidence by a licensed physician designated by the Company
or (ii) evidence that the Optionee has become entitled to receive primary benefits as a disabled employee under the Social Security Act in effect on the date of such disability. 
  
 Section 1.4. Option 
  
 “Option” shall mean the non-qualified stock option granted under this Agreement and the Plan to purchase shares of
the Company’s Common Stock, as indicated on the Signature Page. 
  
 Section 1.5. Retirement 
  
 “Retirement” shall mean when the Optionee (i) reached age sixty five and completed at least five years of service as an Employee, or (ii) reached the age of sixty and completed at least fifteen years of service as an Employee.

  
 Section 1.6. Rule 16b-3

  
 “Rule 16b-3” shall mean that certain Rule 16b-3
under the Securities Exchange Act of 1934, as amended, as such Rule may be amended from time to time. 
  
 Section 1.7. Secretary 
  
 “Secretary” shall mean the Corporate Secretary of the Company. 
  
 Section 1.8. Termination of Employment 
  
 “Termination of Employment” shall mean the time when the
Employee-employer relationship between the Optionee and the Company is terminated for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability or Retirement, but excluding (i) terminations where
there is a simultaneous reemployment or continuing employment of an Optionee by the Company, (ii) at the discretion of the Committee, terminations which result in a temporary severance of the Employee-employer relationship, and (iii) at the
discretion of the Committee, terminations which are followed by the simultaneous establishment of a consulting relationship by the Company with the former Employee. The Committee, in its absolute discretion, shall determine the effect of all matters
and questions 

  

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relating to Termination of Employment, including, but not by way of limitation, the question of whether a Termination of Employment resulted from a discharge
for cause, and all questions of whether particular leaves of absence constitute Terminations of Employment. 
  
 ARTICLE II. 
  
 GRANT OF OPTION 
  
 Section 2.1. Grant of Option 
  
 Effective
as of the Grant Date set forth on the Signature Page, the Company irrevocably grants to the Optionee the non-qualified Option to purchase any part or all of the aggregate number of shares of the Company’s Common Stock as set forth on the
Signature Page, all upon the terms and subject to the conditions set forth in this Agreement. 
  
 Section 2.2. Exercise Price 
  
 The exercise price of the shares of Common Stock covered by the Option is set forth on the Signature Page, and shall not be subject to commission or other
charge. 
  
 Section 2.3. Consideration
to Company 
  
 In consideration of the granting of the Option
by the Company, the Optionee (i) agrees to render faithful and efficient services to the Company, with such duties and responsibilities as the Company shall from time to time prescribe, for a period of at least one (1) year from the date the Option
is granted, (ii) agrees not to disclose or use, directly or indirectly, any proprietary or confidential information concerning the Company so long as such information is proprietary and/or confidential, except any disclosure or use that is for the
benefit of the Company and incidental to the Optionee’s employment, and (iii) agrees to abide by all of the terms and conditions of this Agreement and the Plan. Notwithstanding the foregoing, Optionee understands and agrees that, except as
expressly provided herein, in the event of a Termination of Employment, Optionee shall forfeit all Options. Nothing in the Plan or this Agreement shall confer upon the Optionee any right to continue in the employ of the Company or shall interfere
with or restrict in any way the rights of the Company, which are hereby expressly reserved, to discharge the Optionee at any time for any reason whatsoever, with or without good cause. 
  
 Section 2.4. Adjustments in Option 
  
 In the event that the outstanding shares of the stock subject to the Option
are increased, decreased, or exchanged for a different number or kind of shares of the Company or other securities of the Company, or of another corporation, or if additional shares or new or different shares or other securities are distributed with
respect to such shares of Common Stock or other securities, through merger, consolidation, sale of all or substantially all the property of the Company, reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other distribution with respect to such shares of Common Stock or other securities, the Committee shall make an appropriate and equitable adjustment in the number and kind of shares as to which the Option, or portions thereof then
unexercised, shall be exercisable, to the end that after such event the Optionee’s proportionate interest shall be maintained as 

  

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before the occurrence of such event. Such adjustment in the Option may include any necessary corresponding adjustment in the Option price per share, but
shall be made without change in the total price applicable to the unexercised portion of the Option (except for any change in the aggregate price resulting from rounding-off of share quantities or prices). Any such adjustment made by the Committee
shall be final and binding upon the Optionee, the Company and all other interested persons. 
  
 ARTICLE III. 
  
 PERIOD OF EXERCISABILITY 
  
 Section 3.1. Vesting and Exercisability 
  
 Subject to the acceleration provisions of Section 3.4, the Option shall vest and become exercisable on the dates and manner set forth on the Signature Page; provided, however, that no portion of the Option that is unvested and unexercisable
at Termination of Employment shall thereafter become vested and exercisable. All vesting shall cease as of the Optionee’s Termination of Employment. 
  
 Section 3.2. Duration of Exercisability 
  
 The vesting installments provided for on the Signature Page are cumulative. Each such installment that becomes vested and
exercisable pursuant to the Signature Page or Section 3.4 shall remain vested and exercisable until the Option terminates and becomes unexercisable under Section 3.3. 
  
 Section 3.3. Termination of Option 
  
 Except to the extent otherwise set forth in any Controlling Agreement, if
applicable, the Option may not be exercised to any extent by anyone, and the Option shall terminate, effective as of the first to occur of the following events: 
  
 (a) The expiration of ten (10) years after the Grant Date of the Option, as set forth on the Signature Page; 
  
 (b) The expiration of three (3) months after the date of the Optionee’s
voluntary Termination of Employment or resignation or for cause; 
  
 (c) The expiration of eight (8) months after the date of the Optionee’s Termination of Employment by the Company, for any reason other than: 
  

	 	•	Optionee’s voluntary termination or resignation; 

  

	 	•	cause (for which the Committee shall be the sole judge); 

  

	 	•	Retirement; 

  

	 	•	Disability; or 

  

	 	•	death, 

  

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 unless the Optionee dies or suffers a Disability within such eight-month period, in which case, the Option shall expire
one year after the date of such death or Disability; 
  
 (d) The
expiration of three (3) years after the date of the Optionee’s death or Disability while employed with the Company; 
  
 (e) The expiration of three (3) years after the date of the Optionee’s Retirement from the Company, unless the Optionee dies or suffers a Disability
within such three-year period, in which case, the Option shall expire upon the later of (i) one year after such death or Disability, as applicable, and (ii) the three-year period after Retirement; or 
  
 (f) As to any vested and exercisable portion of the Option outstanding as of
a Change in Control (including that resulting from acceleration of vesting and exercisablitily of the Option under Section 3.4(b)), and notwithstanding anything to the contrary above, the expiration of three (3) years after the date of
Optionee’s Termination of Employment. 
  
 Section 3.4. Acceleration of Vesting and Exercisability 
  
 (a) In the event of Optionee’s Retirement, death or Disability while employed by the Company, the Option shall be and become automatically 100% vested and exercisable as of the date of such Retirement, death or
Disability, as applicable. 
  
 (b) Upon a Change in Control, the
Option shall be and become automatically 100% vested and exercisable; provided, however, that, except to the extent otherwise set forth in any Controlling Agreement, in the event provisions are made in connection with such Change in Control
transaction for the continuance of the Plan and the assumption of the Option or the substitution for the Option of new incentive awards covering the stock of a successor employer corporation, or a parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of shares and prices, then the Option shall not be nor become 100% vested and exercisable upon such Change in Control. 
  
 ARTICLE IV. 
  
 EXERCISE OF OPTION 
  
 Section 4.1. Person Eligible to Exercise 
  
 During the lifetime of the Optionee, only the Optionee may exercise the Option or any portion thereof, or, to the extent the
Option or any portion thereof is transferred in accordance with the terms of the Plan and this Agreement, such transferee may exercise the Option or such portion thereof so transferred. After the death of the Optionee, any exercisable portion of the
Option may, prior to the time when the Option becomes unexercisable under Section 3.3, be exercised by his personal representative or by any person empowered to do so under the Optionee’s will or under the then applicable laws of descent and
distribution. 
  

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 Section 4.2. Partial Exercise 
  
 Any vested exercisable portion of the Option or the entire Option, if then
wholly vested and exercisable, may be exercised at any time prior to the time when the Option or portion thereof terminates and becomes unexercisable under Section 3.3; provided, however, that each partial exercise shall be for not less than one
hundred (100) shares (or the minimum installment set forth in Section 3.1, if a smaller number of shares) and shall be for whole shares only. 
  
 Section 4.3. Manner of Exercise 
  

Any vested exercisable portion of the Option may be exercised solely by delivery to the Secretary or his representative of all of the following prior
to the time when the Option terminates or becomes unexercisable under Section 3.3: 
  
 (a) Notice in writing stating that the Option or portion is thereby exercised, such notice complying with all applicable rules established by the Committee; 
  
 (b) Full payment to the Company for the shares with respect to which such
Option or portion is exercised, through one (or a combination) of the following methods, and subject to compliance with all applicable laws and regulations: 
  
 (i) by cash or check; 
  
 (ii) through a broker assisted cashless exercise, wherein the broker timely pays a sufficient portion of the net proceeds of the sale to
the Company in satisfaction of the Option exercise price; 
  
 (iii) with the consent of the Committee, through surrender of shares of Common Stock of the Company which are already owned by the Optionee and, in certain circumstances, held for more than six (6) months, or through
the withholding of shares of Common Stock then issuable upon Option exercise, in each case with a Fair Market Value on the date of exercise equal to the exercise price payable; or 
  
 (iv) with the consent of the Committee and to the extent not prohibited by applicable law, through a full
recourse promissory note bearing interest (at no less than such rate as shall then preclude the imputation of interest under the Code) and payable upon such terms as may be prescribed by the Committee; 
  
 (c) Full payment to the Company of all amounts that the Company is required
to withhold upon exercise of the Option under federal, state or local tax law, which, payment shall be in the form of cash or deduction from other compensation payable to the Optionee, or with the consent of the Committee, may be in the form of
consideration permitted under Section 4.3(b)(ii) or (iii); provided, however, that the Fair Market Value of shares of Common Stock withheld from exercise or delivered by the Optionee shall not exceed the sums necessary to pay the tax withholding
based on the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income; and 
  
 (d) In the event the Option or portion shall be exercised by any person other than the Optionee, appropriate proof of the
right of such person or persons to exercise the Option. 
  

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 Section 4.4. Restrictions on Exercise 
  
 If the issuance of Shares upon such exercise or if the method of payment for
such shares would constitute a violation of any applicable federal or state securities or other law or regulation, or, if in the discretion of the Committee, would violate the Company’s articles of incorporation or would cause the Company to
not qualify as a real estate investment trust, then the Option may not be so exercised. The Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation before allowing
the Option to be exercised. 
  
 Section
4.5. Conditions to Issuance of Stock 
  
 The shares of
stock deliverable upon the exercise of the Option, or any portion thereof, may be either previously authorized but unissued shares or issued shares which have then been reacquired by the Company. Such shares shall be fully paid and nonassessable.
The Company shall not be required to issue or deliver any shares of stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of the following conditions: 
  
 (a) The admission of such shares to listing on all stock exchanges on which
such class of stock is then listed; 
  
 (b) The completion of any
registration or other qualification of such shares under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or of any other governmental regulatory body, which the Committee shall, in its absolute
discretion, deem necessary or advisable; 
  
 (c) The obtaining of
any approval or other clearance from any state or federal governmental agency which the Committee shall, in its absolute discretion, determine to be necessary or advisable; 
  
 (d) The receipt by the Company of full payment for such shares, including payment of all amounts which, under federal, state
or local tax law, it is required to withhold upon exercise of the Option; and 
  
 (e) The lapse of such reasonable period of time following the exercise of the Option as the Committee may from time to time establish for reasons of administrative convenience. 
  

 7 

 Section 4.6. Rights as Stockholder 
  
 The holder of the Option shall not be, nor have any of the rights or
privileges of, a stockholder of the Company in respect of any shares purchasable upon the exercise of any part of the Option unless and until such shares shall have been issued by the Company to such holder. 
  
 ARTICLE V. 
  
 OTHER PROVISIONS 
  
 Section 5.1. Administration 
  
 The Committee shall have the power to interpret the Plan and this Agreement
and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee in
good faith shall be final and binding upon the Optionee, the Company and all other interested persons. No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan
or the Option. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under this Plan except with respect to matters which under Rule 16b-3 or Section 162(m) of the Code,
or any regulations or rules issued thereunder, are required to be determined in the sole discretion of the Committee. 
  
 Section 5.2. Limited Transferability 
  
 Neither the Option nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements
of the Optionee or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by
judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 5.2 shall not prevent
transfers by will or by the applicable laws of descent and distribution. 
  
 Notwithstanding the foregoing provisions of this Section 5.2, the Committee, in its sole discretion, may permit upon request the transfer of the Option by the Optionee, by gift or contribution, to a “Family
Member” of the Optionee or certain trusts, foundations or entities affiliated with such Family Members, each as permitted by and subject to the terms and conditions contained in Section 7(d) of the Plan. Any Option that has been so transferred
shall continue to be subject to all of the terms and conditions as applicable to the original Optionee, and the consequences of the Optionee’s Termination of Employment shall apply to any such transferee. The transferee shall execute any and
all such documents requested by the Committee in connection with the transfer, including without limitation to evidence the transfer and to satisfy any requirements for an exemption for the transfer under applicable federal and state securities
laws. 
  

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 Section 5.3. Shares to Be Reserved 
  
 The Company shall at all times during the term of the Option reserve and
keep available such number of shares of stock as will be sufficient to satisfy the requirements of this Agreement. 
  
 Section 5.4. Notices 
  
 Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of its Secretary, and any notice to be
given to the Optionee shall be addressed to him at the address given beneath his signature hereto. By a notice given pursuant to this Section 5.4, either party may hereafter designate a different address for notices to be given to him. Any notice
which is required to be given to the Optionee shall, if the Optionee is then deceased, be given to the Optionee’s personal representative if such representative has previously informed the Company of his status and address by written notice
under this Section 5.4. Any notice shall be deemed duly given when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United
States Postal Service, or upon delivery in person or upon delivery to a carrier guaranteeing overnight delivery. 
  
 Section 5.5. Construction 
  
 This Agreement shall be administered, interpreted and enforced under the internal laws of the State of California. This Agreement and the Plan embody the
entire understanding and agreement of the parties in relation to the subject matter hereof; provided, however, that the terms of any Controlling Agreement, if applicable, shall supersede and control over the applicable terms of this Agreement.
Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement. 
  
 Section 5.6. Conformity to Securities Laws 
  
 The Optionee acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all
provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, including without limitation Rule 16b-3. Notwithstanding anything herein to the contrary,
the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended
to the extent necessary to conform to such laws, rules and regulations. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 9 

 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto. 
  

			
	 HEALTH CARE PROPERTY INVESTORS, INC.
 a Maryland corporation

		
	By	 	 
	 	 	

		
	 Title
	 	 
	 	 	

  

	
	 HOLDER

	
	  
	

	 [Name of Holder]

	
	  
	

	 Address

	
	  
	

	 City, States Zip

	
	  
	 Holder’s Taxpayer Identification Number: ________________________

  

 10Amended and Restated Executive Retirement Plan effective 05/07/2003

 EXHIBIT 10.34 
  
 AMENDED AND RESTATED 
  
 HEALTH CARE PROPERTY INVESTORS, INC. 
  
 EXECUTIVE RETIREMENT PLAN 
  

 AMENDED AND RESTATED EXECUTIVE RETIREMENT PLAN 
  
 PREAMBLE 
  
 The principal objective of this Amended and Restated Executive Retirement Plan is to ensure the payment of a competitive
level of retirement income in order to attract, retain, and motivate selected executives. The Plan is designed to provide a benefit which, when added to other retirement income of the executive, shall meet the objective described above. This Plan
amends and restates the Company’s Executive Retirement Plan which became effective on May 1, 1988 and was previously amended, effective as of January 1, 1993, May 1, 2000 and November 30, 2001. 
  
 SECTION 1 
  
 DEFINITIONS 
  
 1.1 “Accrued Benefit” means, as of any determination date, (i) in the case of a Participant who has not attained age 65 on the date of the determination,
the Participant’s retirement benefit to begin at his Normal Retirement Date and (ii) in the case of a Participant who has attained age 65 as of the date of the determination, the Participant’s benefit to begin as of the date of the
determination; determined pursuant to Section 3.1 or Section 3.3, respectively, and based on the Participant’s Final Average Earnings and Years of Service as of the Participant’s Normal Retirement Date, or date of the determination, as the
case may be. 
  
 1.2 “Change in Control” means a “Change in
Control” of the Company, as “Change in Control” is defined in the Company’s Employment Agreement with Kenneth B. Roath, the Company’s Chairman and Chief Executive Officer, as such definition may be amended from time to time.

  
 1.3 “Committee” means the Compensation Committee of the Board
of Directors of the Company, which the Board of Directors has given authority to administer this Plan. 
  

 2 

 1.4 “Company” means Health Care Property Investors, Inc. 
  
 1.5 “Disability” means any termination from the Company’s employment
during the life of a Participant and prior to age 65 by reason of a Participant’s total and permanent disability, as determined by the Committee, in its sole and absolute discretion. A Participant, who makes application for and qualifies for
disability benefits under the Company’s disability plan or under any similar plan provided by the Company, as now in effect or as hereinafter amended (the “LTD Plans”), shall qualify for Disability under this Plan, unless the
committee determines that the Participant is not totally and permanently disabled. A Participant who fails to qualify for disability benefits under the LTD Plans (whether or not the Participant makes application for disability benefits thereunder)
shall not be deemed to be totally and permanently disabled under this Plan, unless the Committee otherwise determines, based upon the opinion of a qualified physician or medical clinic selected by the Committee to the effect that a condition of
total and permanent disability exists. 
  
 1.6 “Earnings” means
total annual cash compensation, including base salary, annual incentive awards, and deferred compensation. Specifically excluded from “Earnings” shall be the value of stock grants (and dividends therefrom), stock options, automobile
allowances and any severance benefits or any payments triggered by a change in control (as defined in the applicable plan, agreement or other document) of the Company. A Participant’s “Annual Earnings” shall consist of the base salary
paid to the Participant during any fiscal year of the Company, any bonuses payable to the Participant with respect to such year, determined on the accrual method, and any compensation which the Participant deferred with respect to such year pursuant
to the terms of any qualified or non-qualified retirement or deferred compensation plan of the Company. Notwithstanding the foregoing provisions, a Participant’s annual bonus payable with respect to 

  

 3 

 
2002 in excess of 100% of a Participant’s base salary for such year shall not be included in the Participant’s “Earnings” or “Annual
Earnings.” 
  
 1.7 “Final Average Earnings” means, with
respect to any Participant, the average of the Participant’s three highest, not necessarily consecutive, Annual Earnings. 
  
 1.8 “In-Service Distribution Date” means January 2, 2004. 
  
 1.9 “Participant” means Kenneth B. Roath, the Company’s Chairman and Chief Executive Officer. 
  
 1.10 “Plan” means the Company’s Amended and Restated Executive
Retirement Plan. 
  
 1.11 “Retirement” or “Retires”
means the termination of a Participant’s employment with the Company on one of the retirement dates specified in Section 2.1. 
  
 1.12 “Service” means a Participant’s total period of employment with the Company before 2004 from date of hire to date of termination of employment,
including employment with National Medical Enterprises, Inc., immediately preceding employment with the Company. 
  
 1.13 “Surviving Spouse” means (i) in the case of a Participant who Retires from the Company’s employment, the spouse of a Participant who is legally
married to the Participant on the date of the Participant’s Retirement and (ii) in the case of a Participant who dies while employed by the Company, the spouse of a Participant who is legally married to the Participant on the date of the
Participant’s death. 
  
 1.14 “Trust,” “Trust
Agreement,” “Trust Fund” and “Trustee” have the meanings set forth in Section 6. 
  

 4 

 1.15 “Years of Service” shall be the number of full and partial years of Service before 2004, with
proration for any partial Year of Service based on the number of completed months of Service in such year. 
  
 1.16 Where appearing in the Plan, the masculine gender shall be deemed to include the feminine gender, and the singular may include the plural, unless the context clearly indicates the contrary. 
  
 SECTION 2 
  
 ELIGIBILITY FOR BENEFITS 
  
 2.1 Each Participant is eligible to retire and receive a benefit under this Plan beginning on one of the following dates: 
  

	(a)	“Normal Retirement Date,” which is the first day of the month following the month in which the Participant reaches age 65 and has completed 5 Years of Service.

  

	(b)	“Early Retirement Date,” which is the first day of any month following the month in which the Participant reaches age 55 and has completed 5 Years of Service.

  

	(c)	“Postponed Retirement Date,” which is the first day of the month following the Participant’s Normal Retirement Date in which the Participant terminates employment
with the Company. 

  
 2.2 Except as otherwise provided in the
Plan, no benefits are payable hereunder unless the Participant Retires on an Early Retirement, Normal Retirement or Postponed Retirement Date. 
  
 2.3 If any Participant entitled to a benefit under this Plan is discharged for cause, or enters into competition with the Company, or interferes with the relations
between the Company and any person, firm or entity with whom the company does business or engages in any activity that would 

  

 5 

 
result in any decrease or loss by the Company, the rights of such Participant to a benefit under this Plan, including the rights of a Surviving Spouse to a
benefit, shall be forfeited, unless the Committee determines that such activity is not detrimental to the best interests of the Company. However, if the individual ceases such activity and notifies the Committee of this action, then the
Participant’s right to receive a benefit, and any right of a Surviving Spouse to a benefit, may be restored within 60 days of said notification, unless the Committee at its sole discretion determines that the prior activity has caused serious
injury to the Company, which determination shall be final and conclusive. 
  
 2.4 Notwithstanding any other provision of the Plan, if a Participant’s employment with the Company has not terminated as of the In-Service Distribution Date, the Participant shall be eligible to receive a monthly retirement
benefit on the In-Service Distribution Date without retiring from the Company’s employment. 
  
 SECTION 3 
  
 AMOUNT AND FORM OF RETIREMENT BENEFIT 
  
 3.1 The annual
retirement benefit payable to a Participant for his lifetime at a Normal Retirement Date under the Plan shall be equal to 30% of Final Average Earnings plus 4% of Final Average Earnings times Years of Service after age 60 to a maximum of 5 years.

  

 6 

 3.2 The annual benefit payable to a Participant for his lifetime at an Early Retirement Date shall be equal to the
benefit determined in Section 3.1 multiplied by the following factors according to the Years of Service of the Participant on Early Retirement Date and the age of the Participant on the date the benefit begins: 
  

									
	 Service Reduction Factor

	 	 	 Age Reduction Factor

	 
	 Completed Years of Service
 and Under Age 60

	  	Factor

	 	 	 Age When Benefit Begins

	  	Factor*

	 
	 4
	  	0	%	 	 	  	 	 
	 5
	  	50	 	 	60	  	75	%
	 6
	  	60	 	 	61	  	80	 
	 7
	  	70	 	 	62	  	85	 
	 8
	  	80	 	 	63	  	90	 
	 9
	  	90	 	 	64	  	95	 
	 10 or more
	  	100	 	 	65	  	100	 
		
	 *  .417% for each month between whole ages.
	  	 	 
				
	 Completed Years of Service
 and Age 60 and Over

	  	Factor

	 	 	 	  	 	 
	 4
	  	0	%	 	 	  	 	 
	 5 or more
	  	100	%	 	 	  	 	 

  
 3.3 The annual benefit payable
to a Participant for his lifetime at a Postponed Retirement Date or at the In-Service Distribution Date, as the case may be, shall be equal to 30% of Final Average Earnings plus 4% of Final Average Earnings times Years of Service after age 60.

  
 3.4 The benefit determined under this Plan shall be payable in the form
of an annuity for the Participant and his spouse (if any), as provided below, or in any other form approved by the Committee and elected by the Participant. 
  
 SECTION 4 
  
 PAYMENT OF RETIREMENT BENEFITS 
  
 4.1 Benefits payable in accordance with Section 3 shall begin on the Participant’s date of Retirement or, in the case of Early Retirement, on the first day of any month following the Participant’s
Early Retirement Date but not later than his Normal Retirement Date, as the Participant may elect, provided, however, that if a Participant is employed by the Company as of the In-Service Distribution Date, the Participant’s benefits shall be
payable commencing on the In-Service Distribution Date. Benefits shall continue to be paid on the first day of each succeeding 

  

 7 

 
month. The last payment shall be on the later of the first day of the month in which the Participant dies or, if the Participant has a Surviving Spouse, the
first day of the month in which the Surviving Spouse dies, unless the Participant elects another form of benefit in accordance with Section 3.4. 
  
 4.2 Any Participant who is under Disability upon reaching his Normal Retirement Date shall be paid his retirement benefit under Section 3.1. Upon a
Participant’s Disability while an employee of the Company, the Participant shall continue to accrue Years of Service during his Disability to the maximum amount permitted by Section 3.1 until the earliest of (a) his recovery from Disability,
(b) his 65th birthday or (c) his death. For the purpose of determining the Participant’s benefit hereunder, the Participant’s Final Average Earnings shall be determined on the basis of his Earnings up to the date of Disability. 

 
 SECTION 5 
  
 DEATH BENEFITS PAYABLE 
  
 5.1 If a Participant should die before or after the Participant begins to receive
benefits under Section 4 and has a Surviving Spouse, the Surviving Spouse shall receive an annual benefit for her lifetime equal to 50% of the amount of the Participant’s retirement benefit determined in accordance with Section 3. 

 
 5.2 A Surviving Spouse’s benefits shall be payable monthly, and shall begin on
the first day of the month following the month in which the Participant dies. The last payment shall be on the first day of the month in which the Surviving Spouse dies. 
  

 8 

 SECTION 6 
  

ESTABLISHMENT AND FUNDING OF TRUST 
  
 6.1 If a Participant so elects, upon a Participant’s Retirement or at any time after 2004 if the Participant’s benefits become distributable on the
In-Service Distribution Date, and in any event, immediately prior to a Change in Control, the Company shall establish a Trust as a part of the Plan in order to implement and carry out the provisions of the Plan and to finance the benefits under the
Plan. The Company shall establish the Trust by entering into a Trust Agreement with a Trustee selected by the Committee. The Trust shall be an irrevocable grantor Trust within the meaning of sections 671 through 679 of the Internal Revenue Code of
1986, as amended, and the Company shall be treated as the owner of the Trust for income tax purposes. It is intended that the Trust shall be in such form as may be necessary for the Plan to be deemed unfunded for purposes of the Employee Retirement
Income Security Act of 1974, as amended. 
  
 6.2 The Trustee of the Trust
shall maintain a Trust Fund. The administration and management of the Trust Fund shall be set forth in the Trust Agreement, the terms of which shall be consistent with the provisions of this Plan. Nothing in the Trust Agreement shall impair the
rights of a Participant nor shall the agreement limit the obligations of the Company under this Plan. 
  
 6.3 If a Participant has elected to have the Company establish a Trust under Section 6.1, on the date of the Participant’s Retirement or at any time after 2004 designated by the Participant if the
Participant’s benefits become distributable on the In-Service Date, and in any event, immediately prior to a Change in Control (each such date, a “Funding Determination Date”), the Company shall make a contribution of cash to the
Trust in an amount which is equal to the present value of the Participant’s Accrued Benefits, as determined by the Committee as of the Funding Determination 

  

 9 

 
Date. Annually thereafter, commencing on the last day of the first fiscal year ending after the Funding Determination Date the Company shall make additional
contributions to the Trust as the Committee shall determine are necessary in order to continue to fully fund the Participant’s Accrued Benefits as of such date. For the purpose of determining the Company’s contributions to any Trust
hereunder, the present value of the Participant’s Accrued Benefits shall be determined by Clark/Bardes or such other actuarial firm that is designated by and mutually acceptable to the Company and the Participant. All fees and expenses of
Clark/Bardes or any other such actuarial firm shall be borne solely by the Company. 
  
 6.4 In the event of the establishment and funding of a Trust under Section 6.1, all benefits payable to a Participant after the date of the establishment of the Trust shall be paid from the Trust Fund. To the extent the Trust Fund is
insufficient to pay all required benefits under the Plan, payment of benefits shall be made from the general assets of the Company. Upon the satisfaction of all of the Plan’s liabilities to the Participant and his Surviving Spouse, any assets
remaining in the Trust shall be returned to the Company. 
  
 SECTION 7 
  
 MISCELLANEOUS 
  
 7.1 The Committee may, at its sole discretion, terminate, suspend, or amend this Plan
at any time or from time to time, in whole or in part. However, no amendment or suspension of the Plan shall affect a Participant’s right to receive an Accrued Benefit, or a retired Participant’s or Surviving Spouse’s right to
continue to receive a benefit in accordance with this Plan. 
  

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 7.2 Nothing contained herein shall confer upon any Participant the right to be retained in the service of the
Company, nor shall it interfere with the Company’s right to discharge or otherwise deal with Participants without regard to the existence of this Plan. 
  
 7.3 To the maximum extent permitted by law, no benefit under this Plan shall be assignable or subject to any manner to alienation, sale, transfer, claims of
creditors, pledge, attachment, or encumbrances of any kind. 
  
 7.4 The
Committee may adopt rules and regulations to assist it in administering the Plan. 
  
 7.5 Each Participant shall receive a copy of this Plan, and the Committee shall make available for inspection by any Participant a copy of the rules and regulations used by the Committee in administering the Plan. 
  
 7.6 This Plan is established under and shall be construed according to the Employee
Retirement Income Security Act of 1974, as amended. 
  

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