Document:

Exhibit 10.33

 

[FIVE YEAR INSTALLMENT VESTING]

 

PERFORMANCE
RESTRICTED STOCK UNIT AGREEMENT

 

[                            ],
Grantee:

 

As of the [            ] day of [              
200  ] (the “Grant Date”),
Health Care Property Investors, Inc., a Maryland corporation (the “Company”),
pursuant to the Health Care Property Investors, Inc. 2000 Stock Incentive
Plan, as amended and/or restated from time to time (the “Plan”), has
granted to you, the Grantee named above, [              ] performance restricted stock units (the “Units”)
with respect to [            ] shares of Common Stock on the terms and conditions set
forth in this Performance Restricted Stock Unit Agreement (this “Agreement”)
and the Plan. The Units are subject to adjustment as provided in Section 11(a) of
the Plan. Capitalized terms not defined herein shall have the meanings assigned
to such terms in the Plan. The Compensation Committee (the “Committee”)
of the Board of Directors of the Company (the “Board”) is the
administrator of the Plan for purposes of your Units.

 

I.                                         Forfeiture
of Units.

 

(a)                                  Forfeiture
Based Upon Company Performance. Your Units will be paid only to the extent
your Units are not forfeited pursuant to this Section I and only to
the extent such non-forfeited Units vest pursuant to this Section I or Section II
below. Your Units are subject to forfeiture if the Company’s Funds From
Operations Per Share for the 2006 calendar year (the “Performance Period”)
is less than [$      ].
If the Company’s Funds From Operations Per Share for the Performance Period is
less than [$      ],
the aggregate percentage of Units that you will forfeit will be determined in
accordance with Exhibit A hereto. For purposes of this Agreement, “Funds
From Operations Per Share” means the Company’s funds from operations per
share during the Performance Period, as prescribed by the National Association
of Real Estate Investment Trusts (NAREIT) as in effect on the first day of the
Performance Period, and shall be calculated on a fully diluted basis using the
weighted average of diluted shares of Common Stock outstanding during the
Performance Period. Funds From Operations Per Share shall be calculated before
taking into account any non-recurring charges incurred by the Company with
respect to the Performance Period for (i) material strategic or financing
transactions approved by the Board of Directors and (ii) impairments. The
determination as to whether the Company has attained the performance goals with
respect to the Performance Period shall be made by the Committee acting in good
faith. The Committee’s determination regarding whether the Company has attained
the performance goals (the “Committee Determination”) shall be made no
later than the March 15 following the end of the Performance Period. Your
Units shall not be deemed vested pursuant to any other provision of this
Agreement earlier than the date that the Committee makes such determination, as
required by Section 162(m) of the Code and the regulations promulgated
thereunder. Any Units forfeited pursuant to this Section I(a) shall
be deemed to have been forfeited as of the last day of the Performance Period.

 

(b)                                 Termination
due to Retirement during the Performance Period. Your Units will remain
outstanding during the remainder of the Performance Period and will be subject
to forfeiture in the manner set forth in subsection (a) upon
completion of the Performance Period if, prior to the completion of the
Performance Period, your employment with the Company is terminated as a result
of your Retirement. In the event of any such termination

 

1

 

during the
Performance Period, any Units not forfeited pursuant to subsection (a) shall
fully vest as of the date of the Committee Determination.

 

(c)                                  Change
in Control during the Performance Period.

 

(i)                                     Your
Units will remain outstanding during the remainder of the Performance Period
and will be subject to forfeiture in the manner set forth in subsection (a) in
the event of a Change in Control occurring during the Performance Period. In
such event, any Units not forfeited pursuant to subsection (a) shall
fully vest as of the date of the Committee Determination; provided, however,
that except as otherwise provided in any change in control or other agreement
with the Company, your Units shall not be so vested if and to the extent the
Units are, in connection with the Change in Control, either to be assumed by
the successor or survivor corporation (or parent thereof) or to be replaced
with a comparable right with respect to shares of the capital stock of the
successor or survivor corporation (or parent thereof), in each case
appropriately adjusted. The determination of comparability of rights shall be
made by the Committee in good faith. The Committee may adopt provisions to
ensure that any such acceleration shall be conditioned upon the consummation of
the contemplated Change in Control.

 

(ii)                                  Notwithstanding
the foregoing, the Committee may, in its sole and absolute discretion, take
action to fully vest your Units immediately prior to, and subject to the
consummation of, a Change in Control occurring during the Performance Period. Any
Units that become vested in accordance with this subsection (c)(ii) shall
not be subject to forfeiture in the manner set forth in subsection (a).

 

(d)                                 Forfeiture
of Units Upon Certain Terminations of Employment. If at any time during the
Performance Period, your employment with the Company is terminated (i) by
the Company, or (ii) by you, excluding any termination by reason of your
Retirement, death or Disability, all of your Units shall be automatically
forfeited and cancelled in full effective as of such termination of employment
and this Agreement shall be null and void and of no further force and effect.

 

II.                                     Vesting.

 

(a)                                  Vesting
of Non-Forfeited Units. You will have no further rights with respect to any
Units that are forfeited in accordance with Section I. Subject to the
terms and conditions of this Agreement, your Units that (i) are not
forfeited in accordance with Section I and (ii) do not otherwise vest
in accordance with Section I, if any, shall vest in accordance with the
following schedule, subject to your continuous service to the Company until the
applicable vesting date. (Vesting amounts pursuant to the following schedule are
cumulative.)

 

	
  Tranche

  	
   

  	
  Percentage of Non Forfeited

  Units that Vest

  	
   

  	
  Vesting Date

  
	
  1

  	
   

  	
  20

  	
  %

  	
  1st Anniversary of
  Grant Date

  
	
  2

  	
   

  	
  20

  	
  %

  	
  2nd Anniversary of
  Grant Date

  
	
  3

  	
   

  	
  20

  	
  %

  	
  3rd Anniversary of
  Grant Date

  
	
  4

  	
   

  	
  20

  	
  %

  	
  4th Anniversary of
  Grant Date

  
	
  5

  	
   

  	
  20

  	
  %

  	
  5th Anniversary of
  Grant Date

  

 

2

 

The vesting schedule requires
continued employment through each applicable Vesting Date as a condition to
vesting of the applicable Tranche and the corresponding rights and benefits
under this Agreement. Unless otherwise expressly provided herein with respect
to accelerated vesting of the Units under certain circumstances, employment for
only a portion of a vesting period, even if a substantial portion, will not
entitle you to any proportionate vesting or avoid or mitigate a termination of
rights and benefits upon or following a termination of employment as provided
in this Agreement.

 

(b)                                 Termination
for Death or Disability. If at any time during the Performance Period or
following the completion of the Performance Period, your employment with the
Company is terminated as a result of your death or Disability, your Units (to
the extent not previously forfeited and otherwise unvested) shall fully vest
immediately upon such termination of employment. For the avoidance of doubt,
any Units that become vested in accordance with this subsection (b) during
the Performance Period shall not be subject to the forfeiture provisions of Section I(a).

 

(c)                                  Termination
by Reason of Retirement Following the Performance Period. If at any time
following the completion of the Performance Period, your employment with the
Company is terminated as a result of your Retirement, your Units (to the extent
not previously forfeited and otherwise unvested) shall fully vest immediately
upon such termination of employment.

 

(d)                                 No
Acceleration or Vesting Upon Other Terminations. If at any time following
the completion of the Performance Period, your employment with the Company is
terminated (i) by the Company, or (ii) by you, excluding any
termination by reason of your Retirement, death or Disability, any of your
Units that remain outstanding and otherwise unvested at the time of such
termination of employment shall be automatically forfeited and cancelled in
full effective as of such termination of employment.

 

III.                                 Change
in Control Following the Performance Period.

 

(a)                                  In
the event of a Change in Control at any time following the completion of the
Performance Period, your Units ( to the extent not previously forfeited and otherwise
unvested) shall vest immediately prior to the effective date of the Change in
Control; provided, however, that except as otherwise provided in any change in
control or other agreement with the Company, your Units shall not be so vested
if and to the extent the Units are, in connection with the Change in Control,
either to be assumed by the successor or survivor corporation (or parent
thereof) or to be replaced with a comparable right with respect to shares of
the capital stock of the successor or survivor corporation (or parent thereof),
in each case appropriately adjusted.

 

3

 

The determination
of comparability of rights shall be made by the Committee in good faith. The
Committee may adopt provisions to ensure that any such acceleration shall
be conditioned upon the consummation of the contemplated Change in Control.

 

(b)                                 Notwithstanding
the foregoing, in the event of a pending or threatened takeover bid or tender
offer at any time following the completion of the Performance Period and
pursuant to which 10% or more of the outstanding securities of the Company is
acquired, whether or not deemed a tender offer under applicable state or
Federal laws, or in the event that any person makes any filing under Sections
13(d) or 14(d) of the Securities Exchange Act of 1934 with respect to
the Company, the Committee may in its sole discretion:

 

(i)                                     Make
the Units fully vested; or

 

(ii)                                  Make
any other reasonable adjustments or amendments to the Units or substitute new
units on substantially similar terms.

 

IV.                                 Timing
and Form of Payment.

 

(a)                                  Distribution
Date. Unless you elect otherwise on or before the Grant Date, the
distribution date (the “Distribution Date”) for your Units that become
vested pursuant to this Agreement will be the date that such Units vest;
provided that in no event shall the Distribution Date occur earlier than the
date of the Committee Determination. Distribution of your vested Units will be
made by the Company in shares of Common Stock (on a one-to-one basis) on or as
soon as practicable after the Distribution Date with respect to such vested
Units. You will only receive distributions in respect of your vested Units and
will have no right to distribution of your unvested Units unless and until such
Units vest (and are not otherwise forfeited pursuant to Section I(a)). Once
a vested Unit has been paid pursuant to this Agreement, you will have no
further rights with respect to that Unit. You may, however, elect (a “Distribution
Election”) to (A) defer your Distribution Date with respect to some or
all of your vested Units and/or (B) have your vested Units distributed to
you in annual installments as provided in Section IV(b), provided that
such election complies with this Section IV. You may change your Distribution
Election with respect to each Tranche (set forth in Section II(a) above)
up to three times without the approval of the Committee, provided such
Distribution Election is made in a timely manner. Any Distribution Elections
with respect to a Tranche in addition to the three provided in the preceding
sentence may only be made with the approval of the Committee, in its sole
discretion. In order for a Distribution Election to be valid, it must be made
at least one year prior to the then-existing Distribution Date with respect to
the Units subject to such Distribution Election, the new Distribution Date must
be at least five years after the then-existing Distribution Date with respect
to such Units, and the election must otherwise be consistent with the “subsequent
election” rules of Section 409A(a)(4)(C) of the Code so as to
prevent application of the penalty and interest provisions of Section 409A(a)(1)(B) of
the Code. Your Distribution Date with respect to any portion of your Units may not
be prior to the earlier of the Vesting Date for such vested Units or the date
of the Committee Determination. Distribution Elections may only be made by
delivering a written election to the Company care of its General Counsel in the
form attached as Exhibit B hereto.

 

4

 

(b)                                 Form of
Distribution. Unless you elect otherwise on or before the Grant Date,
distribution of your vested Units with respect to any Tranche will be made in a
lump sum on or as soon as administratively practicable after your Distribution
Date. You may, however, elect to have vested Units with respect to any Tranche
distributed in the form of two or more annual installments over a fixed
number of years, provided that each installment payment must be for a minimum
of 1,000 shares of Common Stock. If you elect to have some or all of your
vested Units underlying a Tranche distributed in annual installments, the first
installment will be paid on or as soon as practicable after the Distribution
Date with respect to such Tranche and subsequent installments will be paid on
or as soon as practicable after each of the anniversaries of the Distribution
Date with respect to such Tranche during your elected installment period. You may change
an election you make pursuant to this Section IV(b) (or you may make
an initial election in the event that you did not elect a form of payment
at the time of your award and, accordingly, your Units were subject to the lump
sum default payment rule) by filing a new written election with the Committee;
provided that you must also elect a later Distribution Date pursuant to Section IV(a) as
to any Units that are subject to such election and in no event may such an
election result in an acceleration of distributions within the meaning of Section 409A
of the Code so as to prevent application of the penalty and interest provisions
of Section 409A(a)(1)(B) of the Code. Distribution Elections may only
be made by delivering a written election to the Company care of its General
Counsel in the form attached as Exhibit B hereto.

 

(c)                                  Hardship
Distribution. If you experience an Unforeseeable Emergency (as defined
below) you may elect to receive immediate distribution of some or all or
your vested Units upon such Unforeseeable Emergency. Distribution upon an
Unforeseeable Emergency shall be made no later than thirty (30) days following
written notice to the Company care of its General Counsel of the Unforeseeable Emergency.
For purposes of this Agreement, an “Unforeseeable Emergency” shall mean a severe
financial hardship resulting from (i) an illness or accident of you, your
spouse, or your dependent (as defined in Section 152(a) of the Code),
(ii) loss of your property due to casualty, or (iii) any other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond your control, all as reasonably determined by the Committee in
good faith. No distribution shall be made in respect of an Unforeseeable
Emergency unless such Unforeseeable Emergency is not otherwise relievable by
liquidation of your assets (to the extent such liquidation would not itself
cause a severe financial hardship) or through reimbursement or compensation by
insurance or otherwise. Any distribution of your vested Units as a result of an
Unforeseeable Emergency shall be limited to the amount reasonably necessary to
relieve the Unforeseeable Emergency (which may include amounts necessary
to pay any federal, state or local income taxes or penalties reasonably
anticipated to result from the distribution).

 

V.                                     Dividend
Equivalent Rights. During such time as each Unit remains outstanding and
prior to the distribution of such Unit in accordance with Section IV, you
will have the right to receive, in cash, with respect to such Unit, the amount
of any cash dividend paid on a share of Common Stock (a “Dividend Equivalent
Right”). You will have a Dividend Equivalent Right with respect to each
Unit that is outstanding on the record date of such dividend. Dividend
Equivalent Rights will be paid to you at the same time or within 30 days after dividends
are paid to stockholders of the Company. Dividend Equivalent Rights will not be
paid to you with respect to any Units that are forfeited pursuant to Sections I
and II, effective as of the date such Units are forfeited. You will have no
Dividend Equivalent Rights as of the record date of any

 

5

 

such cash dividend
in respect of any Units that have been paid in Common Stock; provided that you
are the record holder of such Common Stock on or before such record date.

 

VI.                                 Transferability.
No benefit payable under, or interest in, the Units or this Agreement shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge and any such attempted action shall be void and
no such benefit or interest shall be, in any manner, liable for, or subject to,
your or your beneficiary’s debts, contracts, liabilities or torts; provided, however, nothing in this Section VI shall
prevent transfers of your Units to the Company or by will or by applicable laws
of descent and distribution. You may designate a beneficiary to receive
distribution of your vested Units upon your death by submitting a written
beneficiary designation to the Committee in the form attached hereto as Exhibit B.
You may revoke a beneficiary designation by submitting a new beneficiary
designation.

 

VII.                             Withholding.
You will be required to pay in cash or deduction from other compensation
payable to you by the Company any sums required by federal, state or local tax
law to be withheld with respect to the issuance, vesting or payment of Units
and the payment of Dividend Equivalent Rights. At your election and in
satisfaction of the foregoing requirement, the Company will withhold shares of
Common Stock underlying the Units and otherwise issuable in accordance with this
Agreement, in the manner prescribed by, and subject to the limitations of, Section 12
of the Plan, in satisfaction of such withholding obligations.

 

VIII.                         No Contract
for Employment. This Agreement is not an employment or service contract and
nothing in this Agreement shall be deemed to create in any way whatsoever any
obligation on your part to continue in the employ or service of the
Company, or of the Company to continue your employment or service with the
Company.

 

IX.                                Notices.
Any notices provided for in this Agreement or the Plan, including a Distribution
Election, shall be given in writing and shall be deemed effectively given upon
receipt if delivered by hand or, in the case of notices delivered by United
States mail, five (5) days after deposit in the United States mail,
postage prepaid, addressed, as applicable, to the Company or if to you, at such
address as is currently maintained in the Company’s records or at such other
address as you hereafter designate by written notice to the Company.

 

X.                                    Plan.
This Agreement is subject to all the provisions of the Plan and their
provisions are hereby made a part of this Agreement. In the event of any
conflict between the provisions of this Agreement and those of the Plan, the
provisions of the Plan shall control.

 

XI.                                Entire
Agreement. This Agreement contains the entire understanding of the parties
in respect of the Units and supersedes upon its effectiveness all other prior
agreements and understandings between the parties with respect to the Units.

 

XII.                            Amendment.
This Agreement may be amended by the Committee; provided, however that no
such amendment shall, without your consent, alter, terminate, impair or adversely
affect your rights under this Agreement.

 

6

 

XIII.                        Governing
Law. This Agreement shall be construed and interpreted, and the rights of
the parties shall be determined, in accordance with the laws of the State of
California, without regard to conflicts of law provisions thereof.

 

XIV.                        Tax
Consequences. You may be subject to adverse tax consequences as a
result of the issuance, vesting and/or distribution of your Units. YOU ARE
ENCOURAGED TO CONSULT A TAX ADVISOR AS TO THE TAX CONSEQUENCES OF YOUR UNITS
AND SUBSEQUENT DISTRIBUTION OF COMMON STOCK.

 

XV.                            Construction.
This Agreement shall be construed and interpreted to comply with Section 409A
of the Code. The Company reserves the right to amend this Agreement to the
extent it reasonably determines is necessary in order to preserve the intended
tax consequences of the Units in light of Section 409A of the Code and any
regulations or other guidance promulgated thereunder. Notwithstanding anything
to the contrary contained in this Agreement or the Plan, in the event that you
are to receive a payment hereunder in connection with your termination of
employment (other than due to your death) at a time when you are a “specified
employee” (within the meaning of Section 409A of the Code), the Company may delay
the making of such payment to a date that is not earlier than the first to
occur of six months and one day after your “separation from service” (within
the meaning of Section 409A of the Code) or the date of your death.

 

[Remainder
of page intentionally left blank]

 

7

 

Very truly yours,

 

	
   

  	
  HEALTH CARE PROPERTY
  INVESTORS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Accepted and Agreed,

effective as of the date first written above.

 

 

	
  By:

  	
   

  	
   

  
	
  Name: [                            ]

  

 

8

 

[FIVE YEAR
INSTALLMENT VESTING]

 

EXHIBIT A

 

PERFORMANCE
GOALS

 

	
  Funds From Operations Per Share

  	
   

  	
  Aggregate Percentage Forfeited

  	
   

  
	
  [$       ] or greater

  	
   

  	
  0

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  2

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  4

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  6

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  8

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  10

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  12

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  14

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  16

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  18

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  20

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  22

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  24

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  26

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  28

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  30

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  32

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  34

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  36

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  38

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  40

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  50

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  60

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  70

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  80

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  90

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  100

  	
  %

  

 

A-1

 

EXHIBIT B

 

HEALTH
CARE PROPERTY INVESTORS, INC.

2000 STOCK INCENTIVE PLAN

 

RESTRICTED
STOCK UNITS

DISTRIBUTION ELECTION AND BENEFICIARY DESIGNATION FORM

 

	
  Name: [                            ]

  	
  Social Security No.: 

  

 

In connection with your award of Performance
Restricted Stock Units on [                ,
2006] under the Health Care Property Investors, Inc. 2000 Stock Incentive
Plan, as amended and/or restated from time to time (the “Plan”), you have the
option of selecting the timing and form of payment of the shares of Common
Stock underlying your vested Units.

 

Please complete this election form and
return it to Edward J. Henning, the Company’s General Counsel and Corporate
Secretary.

 

Deferral of Distribution Date

 

Unless you elect otherwise, the Distribution Date for
your Units that vest will be the vesting date of such Units; provided that in
no event shall the Distribution Date occur earlier than the date of the Committee
Determination with respect to such Units. You may elect a new Distribution
Date with respect to some or all of the Tranches by completing the deferral
election grid below. Please note that, subject
to the restrictions set forth below and in the Agreement, your new Distribution
Date with respect to a Tranche can take any of the following forms:

 

•                                          You may elect
a date certain for your Distribution Date (e.g., January 1, 2010),

 

•                                          You may elect
that your Distribution Date will be the date of your death or termination of employment,
or

 

•                                          You may elect
a Distribution Date that is the earlier of two dates/events (e.g., the earlier
of January 1, 2010, or termination of your employment).

 

If you do not elect a
Distribution Date on or before the Grant Date, you will be deemed to have
elected distribution of your vested Units on or as soon as administratively
practical after the applicable vesting date of your Units. If, after the Grant
Date, you want to change the Distribution Date with respect to any of your vested
Units, your new election must be made at least one year prior to the
then-existing Distribution Date, the new Distribution Date you elect must be at
least five years after the then-existing Distribution Date, and the
change must otherwise satisfy the “subsequent election” rules of Section 409A(a)(4)(C) of
the Code. If your election to defer your Distribution Date is not timely, it
will not be valid.

 

You acknowledge and understand
that by electing a new Distribution Date with respect to one or more of the
Tranches, you are hereby revoking the then-existing Distribution Date with
respect to such Tranche(s). You further acknowledge and agree that the
distribution

 

B-1

 

of the shares of Common Stock
underlying your Units may coincide with a period during which you are
prohibited from selling, disposing or otherwise transferring such shares
pursuant to the Company’s Insider Trading Policy, or by law, and therefore, you
may not be able to sell, dispose or otherwise transfer such shares to pay
any sums required by federal, state or local tax law to be withheld with
respect to the issuance of such shares.

 

	
  Tranche

  	
   

  	
  Vesting Date

  	
   

  	
  Distribution Date*

  
	
  1

  	
   

  	
  1st
  Anniversary ofGrant Date

  	
   

  	
   

  
	
  2

  	
   

  	
  2nd Anniversary of Grant Date

  	
   

  	
   

  
	
  3

  	
   

  	
  3rd Anniversary of Grant Date

  	
   

  	
   

  
	
  4

  	
   

  	
  4th Anniversary of Grant Date

  	
   

  	
   

  
	
  5

  	
   

  	
  5th Anniversary of Grant Date

  	
   

  	
   

  

 

*  Specify “Vesting Date” if you desire payment of the vested Units on or
as soon as administratively practical after the vesting date of the Units. Otherwise,
indicate the Distribution Date you elect. In all events your election is
subject to the rules stated above (including, without limitation, the
5-year deferral requirement set forth above if you are electing a change after
the Grant Date).

 

Form of Payment

 

Distribution of all of your vested Units underlying a
Tranche will be made in shares of Common Stock in a lump sum on or as soon as
practicable after the Distribution Date with respect to such Units. For
example, all of your vested Units under Tranche 1 will be distributed to you on
or as soon as practicable after the Vesting Date with respect to Tranche 1
(unless you elect a later Distribution Date as provided above). You may,
however, elect at the time of your award to have vested Units with respect to
any Tranche distributed in the form of two or more annual installments
over a fixed number of years. For example, if you elect to have your vested
Units underlying Tranche 1 distributed in five installments, your vested Units
will be distributed to you in five equal payments on or as soon as practicable
after the Distribution Date with respect to Tranche 1 and each of the first
four anniversaries of the Distribution Date for Tranche 1.

 

If you elect to have any or all
of your vested Units underlying a Tranche distributed in installments, you must
elect a number of equal annual installments which will result in a distribution
of at least 1,000 shares of Common Stock per installment with respect to such
Tranche (otherwise, the number of installments you elected will be reduced by
the Company to produce a distribution of at least 1,000 shares of Common Stock
per installment). If you would like to change a form of distribution election
you have made (or if you would like to make an initial form of
distribution election in the event that you did not make such an election at
the time of the award), your election must be made at least one year prior to
the then-existing Distribution Date, and you must elect a new Distribution Date
that is at least five years after the then-existing Distribution Date. If
your election to defer your Distribution Date is not timely, it will not be
valid. Furthermore, if you are

 

B-2

 

changing an existing form of
distribution election, your election change cannot result in an
acceleration (within the meaning of Section 409A of the Code) of payments,
and the change must otherwise satisfy the “subsequent election” rules of Section 409A(a)(4)(C) of
the Code.

 

	
  Tranche

  	
   

  	
  Vesting Date

  	
   

  	
  Number of Installments

  (Shares of Common Stock per

  Installment)

  
	
  1

  	
   

  	
  1st
  Anniversary of Grant Date

  	
   

  	
              (     )

  
	
  2

  	
   

  	
  2nd Anniversary of Grant Date

  	
   

  	
              (     )

  
	
  3

  	
   

  	
  3rd Anniversary of Grant Date

  	
   

  	
              (     )

  
	
  4

  	
   

  	
  4th Anniversary of Grant Date

  	
   

  	
              (     )

  
	
  5

  	
   

  	
  5th Anniversary of Grant Date

  	
   

  	
              (     )

  

 

Beneficiary Designation

 

I hereby designate the following individual as
beneficiary to receive distribution of my vested Units, if any, in the event of
my death. Distribution of such vested Units will be in the form, and on the
Distribution Date(s), in effect with respect to such vested Units as of the
date of my death.

 

	
  Beneficiary Information

   

  Name:                                                                                                                                                                                                         

  (Please print)                                                                    Last                                                                                                                                                                         First                                                                                                                                                                                                                                                                      Middle
  Initial

   

  Sex:            Relationship to
  Participant:

   

  Social Security No.:                                                      Date of Birth:

   

  Address:

   

  City:                                                                                              State:                                      Zip Code:                                           

  

 

Please retain a copy of this Distribution Election Form for
your records.

 

	
   

  	
   

  	
   

  	
   

  
	
  Signature: [                            ]

  	
   

  	
  Date Signed

  

 

B-3Exhibit 10.34

 

[CEO FIVE YEAR INSTALLMENT VESTING]

 

PERFORMANCE
RESTRICTED STOCK UNIT AGREEMENT

 

[                            ],
Grantee:

 

As of the [            ] day of [              
2006] (the “Grant Date”), Health
Care Property Investors, Inc., a Maryland corporation (the “Company”),
pursuant to the Health Care Property Investors, Inc. 2000 Stock Incentive
Plan, as amended and/or restated from time to time (the “Plan”), has
granted to you, the Grantee named above, [              ] performance restricted stock units (the “Units”)
with respect to [            ] shares of Common Stock on the terms and conditions set
forth in this Performance Restricted Stock Unit Agreement (this “Agreement”)
and the Plan. The Units are subject to adjustment as provided in Section 11(a) of
the Plan. Capitalized terms not defined herein shall have the meanings assigned
to such terms in the Plan. The Compensation Committee (the “Committee”)
of the Board of Directors of the Company (the “Board”) is the
administrator of the Plan for purposes of your Units.

 

I.                                         Forfeiture
of Units.

 

(a)                                  Forfeiture
Based Upon Company Performance. Your Units will be paid only to the extent
your Units are not forfeited pursuant to this Section I and only to
the extent such non-forfeited Units vest pursuant to this Section I or Section II
below. Your Units are subject to forfeiture if the Company’s Funds From
Operations Per Share for the 2006 calendar year (the “Performance Period”)
is less than [$      ].
If the Company’s Funds From Operations Per Share for the Performance Period is
less than [$      ],
the aggregate percentage of Units that you will forfeit will be determined in
accordance with Exhibit A hereto. For purposes of this Agreement, “Funds
From Operations Per Share” means the Company’s funds from operations per
share during the Performance Period, as prescribed by the National Association
of Real Estate Investment Trusts (NAREIT) as in effect on the first day of the
Performance Period, and shall be calculated on a fully diluted basis using the
weighted average of diluted shares of Common Stock outstanding during the
Performance Period. Funds From Operations Per Share shall be calculated before
taking into account any non-recurring charges incurred by the Company with
respect to the Performance Period for (i) material strategic or financing
transactions approved by the Board of Directors and (ii) impairments. The
determination as to whether the Company has attained the performance goals with
respect to the Performance Period shall be made by the Committee acting in good
faith. The Committee’s determination regarding whether the Company has attained
the performance goals (the “Committee Determination”) shall be made no
later than the March 15 following the end of the Performance Period. Your
Units shall not be deemed vested pursuant to any other provision of this
Agreement earlier than the date that the Committee makes such determination, as
required by Section 162(m) of the Code and the regulations promulgated
thereunder. Any Units forfeited pursuant to this Section I(a) shall
be deemed to have been forfeited as of the last day of the Performance Period.

 

(b)                                 Forfeiture
of Units Upon Termination of Employment. Except as provided in Section I(c),
if at any time during the Performance Period your employment with the Company
is terminated, all of your Units shall be automatically forfeited and cancelled
in full effective as of such termination of employment and this Agreement shall
be null and void and of no further force and effect.

 

1

 

(c)                                  Certain
Terminations during the Performance Period. This Section I(c) applies
in the event your employment with the Company is terminated as a result of (i) your
death, Disability or Retirement, (ii) a Termination Other Than For Cause, (iii) a
Termination For Good Reason, or (iv) a Termination Upon a Change in
Control (including a Covered Resignation). In the event of any such termination
during the Performance Period, your Units will remain outstanding during the remainder
of the Performance Period and will be subject to forfeiture in the manner set
forth in subsection (a) upon completion of the Performance Period. In
such a case, any Units not so forfeited pursuant to subsection (a) shall
fully vest as of the date of the Committee Determination. For purposes of this
Agreement, the terms “Covered Resignation,” “Disability,” “Termination
Other Than For Cause,” “Termination For Good Reason,” and “Termination
Upon a Change in Control” shall have the meanings ascribed to such terms in
your Employment Agreement with the Company dated October 26, 2005 (the “Employment
Agreement”). Such meanings shall continue to apply for purposes of this
Agreement notwithstanding any termination of the “Employment Period” (as
such term is defined in the Employment Agreement) in accordance with the
Employment Agreement.

 

II.                                     Vesting.

 

(a)                                  Vesting
of Non-Forfeited Units. You will have no further rights with respect to any
Units that are forfeited in accordance with Section I. Subject to the terms
and conditions of this Agreement, your Units that (i) are not forfeited in
accordance with Section I and (ii) do not otherwise vest in
accordance with Section I, if any, shall vest in accordance with the
following schedule, subject to your continuous service to the Company until the
applicable vesting date. (Vesting amounts pursuant to the following schedule are
cumulative.)

 

	
  Tranche

  	
   

  	
  Percentage of Non Forfeited

  Units that Vest

  	
   

  	
  Vesting Date

  	
   

  
	
  1

  	
   

  	
  20

  	
  %

  	
  1st Anniversary of Grant Date

  	
   

  
	
  2

  	
   

  	
  20

  	
  %

  	
  2nd Anniversary of Grant Date

  	
   

  
	
  3

  	
   

  	
  20

  	
  %

  	
  3rd Anniversary of Grant Date

  	
   

  
	
  4

  	
   

  	
  20

  	
  %

  	
  4th Anniversary of Grant Date

  	
   

  
	
  5

  	
   

  	
  20

  	
  %

  	
  5th Anniversary of Grant Date

  	
   

  

 

The vesting schedule requires
continued employment through each applicable Vesting Date as a condition to vesting
of the applicable Tranche and the corresponding rights and benefits under this
Agreement. Unless otherwise expressly provided herein with respect to
accelerated vesting of the Units under certain circumstances, employment for
only a portion of a vesting period, even if a substantial portion, will not
entitle you to any proportionate vesting or avoid or mitigate a termination of
rights and benefits upon or following a termination of employment as provided
in this Agreement.

 

2

 

(b)                                 Acceleration
on Certain Terminations Following Performance Period. If at any time following
the completion of the Performance Period and prior to the date your Units
become fully vested in accordance with Section II(a), your employment with
the Company is terminated as a result of (i) your death, Disability or
Retirement, (ii) a Termination Other Than For Cause (iii) a
Termination For Good Reason, or (iv) a Termination Upon a Change in
Control (including a Covered Resignation), your then outstanding Units (to the
extent not previously forfeited and otherwise unvested) shall fully vest
immediately upon such termination of employment.

 

(c)                                  No
Acceleration or Vesting Upon Other Terminations. Except as otherwise
provided in the Plan, if at any time your employment with the Company is
terminated (i) by the Company, or (ii) by you, under any
circumstances (other than as a result of your death, Disability, Retirement, a
Termination Other Than For Cause, a Termination For Good Reason, or a
Termination Upon a Change in Control, including a Covered Resignation), any of
your Units that remain outstanding and otherwise unvested at the time of such
termination of employment shall be automatically forfeited and cancelled in
full, effective as of such termination of employment.

 

(d)                                 Employment
Termination Date. If the Employment Period is in effect, the date of your
termination of employment for purposes of this Agreement shall be no earlier
than the “Date of Termination,” as such term is defined in the
Employment Agreement. If the Employment Period is not then in effect, the date
of termination of your termination of employment for purposes of this Agreement
shall be your actual date of termination of employment.

 

III.                                 Timing
and Form of Payment.

 

(a)                                  Distribution
Date. Unless you elect otherwise on or before the Grant Date, the
distribution date (the “Distribution Date”) for your Units that become
vested pursuant to this Agreement will be the date that such Units vest;
provided that in no event shall the Distribution Date occur earlier than the
date of the Committee Determination. Distribution of your vested Units will be
made by the Company in shares of Common Stock (on a one-to-one basis) on or as
soon as practicable after the Distribution Date with respect to such vested
Units. You will only receive distributions in respect of your vested Units and
will have no right to distribution of your unvested Units unless and until such
Units vest (and are not otherwise forfeited pursuant to Section I(a)). Once
a vested Unit has been paid pursuant to this Agreement, you will have no
further rights with respect to that Unit. You may, however, elect (a “Distribution
Election”) to (A) defer your Distribution Date with respect to some or
all of your vested Units and/or (B) have your vested Units distributed to
you in annual installments as provided in Section IV(b), provided that
such election complies with this Section IV. You may change your Distribution
Election with respect to each Tranche (set forth in Section II(a) above)
up to three times without the approval of the Committee, provided such
Distribution Election is made in a timely manner. Any Distribution Elections
with respect to a Tranche in addition to the three provided in the preceding
sentence may only be made with the approval of the Committee, in its sole
discretion. In order for a Distribution Election to be valid, it must be made
at least one year prior to the then-existing Distribution Date with respect to
the Units subject to such Distribution Election, the new Distribution Date must
be at least five years after the then-existing Distribution Date

 

3

 

with respect to
such Units, and the election must otherwise be consistent with the “subsequent
election” rules of Section 409A(a)(4)(C) of the Code so as to prevent
application of the penalty and interest provisions of Section 409A(a)(1)(B) of
the Code. Your Distribution Date with respect to any portion of your Units may not
be prior to the earlier of the Vesting Date for such vested Units or the date
of the Committee Determination. Distribution Elections may only be made by
delivering a written election to the Company care of its General Counsel in the
form attached as Exhibit B hereto.

 

(b)                                 Form of
Distribution. Unless you elect otherwise on or before the Grant Date,
distribution of your vested Units with respect to any Tranche will be made in a
lump sum on or as soon as administratively practicable after your Distribution
Date. You may, however, elect to have vested Units with respect to any Tranche
distributed in the form of two or more annual installments over a fixed
number of years, provided that each installment payment must be for a minimum
of 1,000 shares of Common Stock. If you elect to have some or all of your
vested Units underlying a Tranche distributed in annual installments, the first
installment will be paid on or as soon as practicable after the Distribution
Date with respect to such Tranche and subsequent installments will be paid on
or as soon as practicable after each of the anniversaries of the Distribution
Date with respect to such Tranche during your elected installment period. You may change
an election you make pursuant to this Section IV(b) (or you may make
an initial election in the event that you did not elect a form of payment
at the time of your award and, accordingly, your Units were subject to the lump
sum default payment rule) by filing a new written election with the Committee;
provided that you must also elect a later Distribution Date pursuant to Section IV(a) as
to any Units that are subject to such election and in no event may such an
election result in an acceleration of distributions within the meaning of Section 409A
of the Code so as to prevent application of the penalty and interest provisions
of Section 409A(a)(1)(B) of the Code. Distribution Elections may only
be made by delivering a written election to the Company care of its General
Counsel in the form attached as Exhibit B hereto.

 

(c)                                  Hardship
Distribution. If you experience an Unforeseeable Emergency (as defined
below) you may elect to receive immediate distribution of some or all or
your vested Units upon such Unforeseeable Emergency. Distribution upon an
Unforeseeable Emergency shall be made no later than thirty (30) days following
written notice to the Company care of its General Counsel of the Unforeseeable Emergency.
For purposes of this Agreement, an “Unforeseeable Emergency” shall mean a severe
financial hardship resulting from (i) an illness or accident of you, your
spouse, or your dependent (as defined in Section 152(a) of the Code),
(ii) loss of your property due to casualty, or (iii) any other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond your control, all as reasonably determined by the Committee in
good faith. No distribution shall be made in respect of an Unforeseeable
Emergency to the extent that such Unforeseeable Emergency is or may be
relieved through reimbursement or compensation by insurance or otherwise or by
liquidation of your assets (to the extent such liquidation would not itself
cause a severe financial hardship). Any distribution of your vested Units as a
result of an Unforeseeable Emergency shall be limited to the amount reasonably
necessary to relieve the Unforeseeable Emergency (which may include
amounts necessary to pay any federal, state or local income taxes or penalties
reasonably anticipated to result from the distribution).

 

4

 

IV.                                 Dividend
Equivalent Rights. During such time as each Unit remains outstanding and
prior to the distribution of such Unit in accordance with Section IV, you
will have the right to receive, in cash, with respect to such Unit, the amount
of any cash dividend paid on a share of Common Stock (a “Dividend Equivalent
Right”). You will have a Dividend Equivalent Right with respect to each
Unit that is outstanding on the record date of such dividend. Dividend
Equivalent Rights will be paid to you at the same time or within 30 days after dividends
are paid to stockholders of the Company. Dividend Equivalent Rights will not be
paid to you with respect to any Units that are forfeited pursuant to Sections I
and II, effective as of the date such Units are forfeited. You will have no
Dividend Equivalent Rights as of the record date of any such cash dividend in
respect of any Units that have been paid in Common Stock; provided that you are
the record holder of such Common Stock on or before such record date.

 

V.                                     Transferability.
No benefit payable under, or interest in, the Units or this Agreement shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge and any such attempted action shall be void and
no such benefit or interest shall be, in any manner, liable for, or subject to,
your or your beneficiary’s debts, contracts, liabilities or torts; provided, however, nothing in this Section VI shall
prevent transfer of your Units by will or by applicable laws of descent and
distribution. You may designate a beneficiary to receive distribution of
your vested Units upon your death by submitting a written beneficiary
designation to the Committee in the form attached hereto as Exhibit B.
You may revoke a beneficiary designation by submitting a new beneficiary
designation.

 

VI.                                 Withholding.
You will be required to pay in cash or deduction from other compensation
payable to you by the Company any sums required by federal, state or local tax
law to be withheld with respect to the issuance, vesting or payment of Units
and the payment of Dividend Equivalent Rights. At your election and in
satisfaction of the foregoing requirement, the Company will withhold shares of
Common Stock underlying the Units and otherwise issuable in accordance with
this Agreement, in the manner prescribed by, and subject to the limitations of,
Section 12 of the Plan, in satisfaction of such withholding obligations.

 

VII.                             No
Contract for Employment. This Agreement is not an employment or service
contract and nothing in this Agreement shall be deemed to create in any way
whatsoever any obligation on your part to continue in the employ or
service of the Company, or of the Company to continue your employment or
service with the Company.

 

VIII.                         Notices.
Any notices provided for in this Agreement or the Plan, including a Distribution
Election, shall be given in writing and shall be deemed effectively given upon
receipt if delivered by hand or, in the case of notices delivered by United
States mail, five (5) days after deposit in the United States mail,
postage prepaid, addressed, as applicable, to the Company or if to you, at such
address as is currently maintained in the Company’s records or at such other
address as you hereafter designate by written notice to the Company.

 

IX.                                Plan.
The provisions of the Plan are hereby made a part of this Agreement. In
the event of any conflict between the provisions of this Agreement and those of
the Plan, the provisions of this Agreement shall control.

 

5

 

X.                                    Entire
Agreement. This Agreement, together with the Employment Agreement, contains
the entire understanding of the parties in respect of the Units and supersedes
upon its effectiveness all other prior agreements and understandings between
the parties with respect to the Units. In the event of any discrepancy between
this Agreement and the Employment Agreement, the Employment Agreement shall
control.

 

XI.                                Amendment.
This Agreement may be amended by the Committee; provided, however that no
such amendment shall, without your prior written consent, alter, terminate,
impair or adversely affect your rights under this Agreement.

 

XII.                            Governing
Law. This Agreement shall be construed and interpreted, and the rights of
the parties shall be determined, in accordance with the laws of the State of
California, without regard to conflicts of law provisions thereof.

 

XIII.                        Tax
Consequences. You may be subject to adverse tax consequences as a
result of the issuance, vesting and/or distribution of your Units. YOU ARE
ENCOURAGED TO CONSULT A TAX ADVISOR AS TO THE TAX CONSEQUENCES OF YOUR UNITS
AND SUBSEQUENT DISTRIBUTION OF COMMON STOCK.

 

XIV.                        Construction.
To the extent that this Agreement is subject to Section 409A of the Code,
you and the Company agree to cooperate and work together in good faith to
timely amend this Agreement to prevent application of the penalty and interest
provisions of Section 409A(a)(1)(B) of the Code. In the event that
you and the Company do not agree as to the necessity, timing or nature of a
particular amendment intended to prevent application of the penalty and
interest provisions of Section 409A(a)(1)(B) of the Code, reasonable
deference will be given to your reasonable interpretation of such provisions. Notwithstanding
anything to the contrary contained in this Agreement or the Plan, in the event
that you are to receive a payment hereunder in connection with your termination
of employment (other than due to your death) at a time when you are a “specified
employee” (within the meaning of Section 409A of the Code), the Company
shall delay the making of such payment to a date that is not earlier than the
first to occur of six months and one day after your “separation from service”
(within the meaning of Section 409A of the Code) or the date of your
death.

 

[Remainder
of page intentionally left blank]

 

6

 

Very truly yours,

 

	
   

  	
  HEALTH CARE PROPERTY
  INVESTORS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
   

  	
  And:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Accepted and Agreed,

effective as of the date first written above.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  

 

7

 

[CEO FIVE
YEAR INSTALLMENT VESTING]

 

EXHIBIT A

 

PERFORMANCE
GOALS

 

	
  Funds From Operations Per Share

  	
   

  	
  Aggregate Percentage Forfeited

  	
   

  
	
  [$       ] or greater

  	
   

  	
  0

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  2

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  4

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  6

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  8

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  10

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  12

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  14

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  16

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  18

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  20

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  22

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  24

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  26

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  28

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  30

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  32

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  34

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  36

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  38

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  40

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  50

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  60

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  70

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  80

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  90

  	
  %

  
	
  Equal to or greater than [$       ] but less than [$       ]

  	
   

  	
  100

  	
  %

  

 

A-1

 

EXHIBIT B

 

HEALTH
CARE PROPERTY INVESTORS, INC.

2000 STOCK INCENTIVE PLAN

 

RESTRICTED
STOCK UNITS

DISTRIBUTION ELECTION AND BENEFICIARY DESIGNATION FORM

 

Name:

 

Social Security No.: 

 

In connection with your award of Performance
Restricted Stock Units on [                ,
2006] under the Health Care Property Investors, Inc. 2000 Stock Incentive
Plan, as amended and/or restated from time to time (the “Plan”), you have the
option of selecting the timing and form of payment of the shares of Common
Stock underlying your vested Units.

 

Please complete this election form and
return it to Edward J. Henning, the Company’s General Counsel and Corporate
Secretary.

 

Deferral of Distribution Date

 

Unless you elect otherwise, the Distribution Date for
your Units that vest will be the vesting date of such Units; provided that in
no event shall the Distribution Date occur earlier than the date of the
Committee Determination with respect to such Units. You may elect a new
Distribution Date with respect to some or all of the Tranches by completing the
information request below. Please note that, subject
to the restrictions set forth below and in the Agreement, your new Distribution
Date with respect to a Tranche can take any of the following forms:

 

•                                          You may elect
a date certain for your Distribution Date (e.g., January 1, 2010),

 

•                                          You may elect
that your Distribution Date will be the date of your death or termination of employment,
or

 

•                                          You may elect
a Distribution Date that is the earlier of two dates/events (e.g., the earlier
of January 1, 2010, or termination of your employment).

 

If you do not elect a
Distribution Date on or before the Grant Date, you will be deemed to have
elected distribution of your vested Units on or as soon as administratively
practical after the applicable vesting date of your Units. If, after the Grant
Date, you want to change the Distribution Date with respect to any of your
vested Units, your new election must be made at least one year prior to the
then-existing Distribution Date, the new Distribution Date you elect must be at
least five years after the then-existing Distribution Date, and the
change must otherwise satisfy the “subsequent election” rules of Section 409A(a)(4)(C) of
the Code. If your election to defer your Distribution Date is not timely, it
will not be valid.

 

B-1

 

You acknowledge and understand
that by electing a new Distribution Date with respect to one or more of the
Tranches, you are hereby revoking the then-existing Distribution Date with
respect to such Tranche(s). You further acknowledge and agree that the
distribution of the shares of Common Stock underlying your Units may coincide
with a period during which you are prohibited from selling, disposing or
otherwise transferring such shares pursuant to the Company’s Insider Trading
Policy, or by law, and therefore, you may not be able to sell, dispose or
otherwise transfer such shares to pay any sums required by federal, state or
local tax law to be withheld with respect to the issuance of such shares. 

 

	
  Tranche

  	
   

  	
  Vesting Date

  	
   

  	
  Distribution Date*

  
	
  1

  	
   

  	
  1st
  Anniversary of Grant Date

  	
   

  	
   

  
	
  2

  	
   

  	
  2nd Anniversary of Grant Date

  	
   

  	
   

  
	
  3

  	
   

  	
  3rd Anniversary of Grant Date

  	
   

  	
   

  
	
  4

  	
   

  	
  4th Anniversary of Grant Date

  	
   

  	
   

  
	
  5

  	
   

  	
  5th Anniversary of Grant Date

  	
   

  	
   

  

 

*  Specify “Vesting Date” if you desire payment of the vested Units on or
as soon as administratively practical after the vesting date of the Units. Otherwise,
indicate the Distribution Date you elect. In all events your election is
subject to the rules stated above (including, without limitation, the
5-year deferral requirement set forth above if you are electing a change after the
Grant Date).

 

Form of Payment

 

Distribution of all of your vested Units underlying a
Tranche will be made in shares of Common Stock in a lump sum on or as soon as
practicable after the Distribution Date with respect to such Units. For
example, all of your vested Units under Tranche 1 will be distributed to you on
or as soon as practicable after the Vesting Date with respect to Tranche 1
(unless you elect a later Distribution Date as provided above). You may,
however, elect at the time of your award to have vested Units with respect to
any Tranche distributed in the form of two or more annual installments
over a fixed number of years. For example, if you elect to have your vested
Units underlying Tranche 1 distributed in five installments, your vested Units
will be distributed to you in five equal payments on or as soon as practicable
after the Distribution Date with respect to Tranche 1 and each of the first
four anniversaries of the Distribution Date for Tranche 1.

 

If you elect to have any or all
of your vested Units underlying a Tranche distributed in installments, you must
elect a number of equal annual installments which will result in a distribution
of at least 1,000 shares of Common Stock per installment with respect to such
Tranche (otherwise, the number of installments you elected will be reduced by
the Company to produce a distribution of at least 1,000 shares of Common Stock
per installment). If you would like to change a form of distribution election
you have made (or if you would like to make an initial form of distribution
election in the event that you did not make such an election at the time of the
award), your election must be made at least

 

B-2

 

one year prior to the
then-existing Distribution Date, and you must elect a new Distribution Date
that is at least five years after the then-existing Distribution Date. If
your election to defer your Distribution Date is not timely, it will not be
valid. Furthermore, if you are changing an existing form of distribution
election, your election change cannot result in an acceleration (within
the meaning of Section 409A of the Code) of payments, and the change must
otherwise satisfy the “subsequent election” rules of Section 409A(a)(4)(C) of
the Code.

 

	
  Tranche

  	
   

  	
  Vesting Date

  	
   

  	
  Number of Installments

  (Shares of Common Stock per

  Installment)

  
	
  1

  	
   

  	
  1st
  Anniversary of Grant Date

  	
   

  	
                (       )

  
	
  2

  	
   

  	
  2nd Anniversary of Grant Date

  	
   

  	
                (       )

  
	
  3

  	
   

  	
  3rd Anniversary of Grant Date

  	
   

  	
                (       )

  
	
  4

  	
   

  	
  4th Anniversary of Grant Date

  	
   

  	
                (       )

  
	
  5

  	
   

  	
  5th Anniversary of Grant Date

  	
   

  	
                (       )

  

 

Beneficiary Designation

 

I hereby designate the following individual as
beneficiary to receive distribution of my vested Units, if any, in the event of
my death. Distribution of such vested Units will be in the form, and on the
Distribution Date(s), in effect with respect to such vested Units as of the
date of my death.

 

	
  Beneficiary Information

   

  Name:                                                                                                                                                                                                         

  (Please print)                                                                    Last                                                                                                                                                                         First                                                                                                                                                                                                                                                                      Middle
  Initial

   

  Sex:            Relationship to
  Participant:

   

  Social Security No.:                                                      Date of Birth:

   

  Address:

   

  City:                                                                                                  State:                                          Zip Code:                                  

  

 

Please retain a copy of this Distribution Election Form for
your records.

 

B-3

 

	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
  Date Signed

  

 

B-4

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