Document:

Exhibit 10.3

 

EXHIBIT 10.3

DEFERRED STOCK UNIT

GRANT AGREEMENT

FOR NON-EMPLOYEE DIRECTOR

     THIS DEFERRED STOCK UNIT GRANT AGREEMENT (the “Agreement”), made this ___day of                     ,
20___(the “Grant Date”), between Health Care REIT, Inc., a Delaware corporation (the
“Corporation”), and                                         (the “Director”).

WITNESSETH:

     WHEREAS, the Director serves as a member of the Board of Directors of the Corporation;

     WHEREAS, the Corporation maintains the Health Care REIT, Inc. 2005 Long-Term Incentive Plan
(the “Plan”) in order to promote the growth and profitability of the Corporation by providing
officers, key employees and non-employee directors with incentives to achieve long-term corporate
objectives, to assist the Corporation in attracting and retaining officers, key employees and
non-employee directors of outstanding competence, and to provide such individuals with an
opportunity to acquire an equity interest in the Corporation;

     WHEREAS, the Plan authorize awards under the Plan to be made to non-employee directors with
the approval of the Board of Directors; and

     WHEREAS, the Board has determined that each non-employee director of the Corporation shall be
granted Deferred Stock Units with respect to shares of the Corporation’s common stock on the terms
and conditions set forth below.

     NOW, THEREFORE, in consideration of the past and future services the Director has provided to
the Corporation as a member of the Board, and the various covenants and agreements herein
contained, and intending to be legally bound hereby, the parties hereto agree as follows:

     1. Grant of Deferred Stock Units.

          The Corporation hereby grants to the Director Deferred Stock Units with respect to a total of
                     (___) shares of the common stock, $1.00 par value per share, of the Corporation
(the “Common Stock”), subject to satisfaction of the vesting conditions and other terms set forth
in this Agreement. The Director shall not be required to make any payment to the Corporation
(other than his or her services as a director) in exchange for such Deferred Stock Units or in
exchange for the issuance of shares of Common Stock upon vesting of Deferred Stock Units.

2. Deferred Delivery of Shares 

          The Director shall not be entitled to the issuance of shares of Common Stock or to receive any
distributions with respect to the Deferred Stock Units except as provided in Section 9 below, until
such time as the Deferred Stock Units may vest under Section 3 below. Further,

 

 

except as provided
in Section 9 below, the Director shall not have any of the rights and privileges of a stockholder
of the Corporation (including voting rights and the right to receive dividends) with respect to the
shares of Common Stock to be issued pursuant to the Deferred Stock Units until such time as the
Deferred Stock Units vest and the shares of Common Stock are issued to the Director.

     3. Vesting; When Deferred Stock Units Vest.

          Subject to the terms and conditions of this Agreement, the Deferred Stock Units shall vest in
three annual installments, on the first three anniversaries of the Grant Date, subject to the
Director’s continued service as a member of the Board of Directors through such dates, or at such
earlier time as the Deferred Stock Units may vest pursuant to Sections 7 or 8 of this Agreement.
In the absence of any accelerated vesting under Sections 7 or 8, the Deferred Stock Units granted
under this Agreement shall vest with respect to the following numbers of shares on the following
vesting dates:

	 	 	 	 	 
	VESTING	 	NUMBER OF DSUs	 
	DATES	 	THAT BECOME VESTED	 
	_________, 20__
	 	_____ shares
	 
	 	 	 	 
	_________, 20__
	 	_____ shares
	 
	 	 	 	 
	_________, 20__
	 	_____ shares

The Deferred Stock Units may not be sold, transferred, assigned, pledged or otherwise encumbered or
disposed of by the Director, and the shares of Common Stock potentially issuable to the Director
pursuant to these Deferred Stock Units may not be sold, transferred, assigned, pledged or otherwise
encumbered by the Director until such shares are so issued.

          Any attempt to dispose of the Deferred Stock Units in a manner contrary to the restrictions
set forth in this Agreement shall be ineffective.

     4. Issuance of Stock Certificates for Shares.

          Whenever any or all of the Deferred Stock Units granted to the Director under this Agreement
become vested pursuant to Section 3 or Sections 7 or 8 below, the Corporation shall cause a number
of shares of Common Stock equal to the number of newly vested Deferred Stock Units to be issued to
the Director and a stock certificate or certificates representing these shares of Common Stock to
be registered in the name of the Director. The stock certificate or stock certificates
representing such shares of Common Stock shall be delivered to the Director
(or to his or her designated nominee) upon the vesting date (or as soon as practicable after the
vesting date, but in no event later than December 31 of the year containing the vesting date or, if
later, by the 15th day of the third calendar month following the vesting date). Once shares of
Common Stock have been issued as a result of the vesting of Deferred Stock Units, the corresponding

2

 

vested Deferred Stock Unit shall be considered cancelled and shall be of no further force or
effect.

     5. No Tax Withholding.

          Whenever some or all of the Deferred Stock Units vest under Section 3 (or on an accelerated
basis pursuant to Sections 7 or 8 of this Agreement), the Corporation shall notify the Director of
the amount of tax which the Director incurs under applicable federal, state and local tax laws.
The Corporation will not withhold such taxes, and the Director acknowledges that the Director may
need to adjust his or her estimated tax payments to take the additional taxable income into
account.

     6. Termination of Service on the Board.

          (a) Except as provided in Sections 6(b), 7 or 8 below, if the Director resigns from service as
a member of the Board of Directors, decides not to stand for reelection at the expiration of the
Director’s term of office, is not nominated by the Board to stand for election at the Annual
Stockholders’ Meeting at which the Director’s term of office expires, or, if nominated, is not
reelected, then any Deferred Stock Units held by the Director which have not yet vested shall not
be forfeited, but shall remain unvested until such time as such Deferred Stock Units would
otherwise have become vested as provided in Section 3.

          (b) Notwithstanding the foregoing, if the Director is removed from the Board by the
stockholders of the Corporation for cause, or the Director resigns or decides not to stand for
reelection following delivery of notice to the stockholders of a proposal to remove the Director
for cause (for these purposes, cause shall include, but not be limited to, dishonesty,
incompetence, moral turpitude, other misconduct of any kind and the refusal to perform the
Director’s duties and responsibilities for any reason other than illness or incapacity), then all
Deferred Stock Units which have not previously become vested shall immediately be forfeited. A
Director shall have total disability only if he is “disabled” within the meaning of Section 409A of
the Internal Revenue code of 1986, as amended (the “Code”).

          (c) Any stock certificates deliverable under Sections 7(a) or 7(b) shall be delivered
immediately upon the Director’s death or disability as applicable (or as soon as practicable
thereafter, but in no event later than December 31 of the year in which the applicable event
occurred or, if later, by the 15th day of the third calendar month following the event).

     7. Effect of Death or Disability.

          (a) If the Director ceases to serve as a member of the Board as a result of the Director’s
death before the Deferred Stock Units granted under this Agreement have become vested, vesting of
any unvested Deferred Stock Units granted to the Director under this
Agreement shall be accelerated, and stock certificates for the number of shares of Common Stock
equal to the number of newly vested Deferred Stock Units shall be delivered to the Director’s
executor, administrator, or any person to whom the Director’s rights with respect to the Deferred
Stock Units may be transferred by the Director’s will or by the laws of descent.

3

 

          (b) If the Director ceases to serve as a member of the Board as a result of the Director’s
total disability before the Deferred Stock Units granted under this Agreement have become vested,
vesting of any unvested Deferred Stock Units granted to the Director under this Agreement shall be
accelerated, and stock certificates for the number of shares of Common Stock equal to the number of
newly vested Deferred Stock Units shall be delivered to the Director pursuant to Section 4, free of
any restrictions. A Director shall have total disability only if he or she is “disabled” within
the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

          (c) Any stock certificates deliverable under Sections 7(a) or 7(b) shall be delivered
immediately upon the Director’s death or total disability, as applicable (or as soon as practicable
thereafter, but in no event later than December 31 of the year in which the applicable event
occurred or, if later, by the 15th day of the third calendar month following the event).

     8. Effect of Change in Corporate Control.

          Notwithstanding the other terms of this Agreement, in the event of a Change in Corporate
Control (as defined below), the vesting of the Deferred Stock Units granted under this Agreement
shall be accelerated, any previously unvested Deferred Stock Units shall vest immediately, and the
Director shall become entitled to immediately receive a number of shares of Common Stock equal to
the number of previously unvested Deferred Stock Units. Any stock certificates deliverable under
this Section 8 shall be delivered immediately upon the Change in Corporate Control (or as soon as
practicable thereafter, but in no event later than December 31 of the year in which the Change in
Corporate Control occurs or, if later, the 15th day of the third month following the Change in
Corporate Control).

          For purposes of this Section 8, a “Change in Corporate Control” shall mean a “change in
ownership or effective control” in respect of the Corporation within the meaning of Section 409A of
the Code.

     9. Dividend Equivalent Rights.

          During such time as any Deferred Stock Units remain outstanding and unvested, whenever the
Corporation pays dividends on the Common Stock, the Director will have the right to receive a cash
payment from the Corporation with respect to each Deferred Stock Unit in an amount equal to any
dividends paid on a share of Common Stock (a “Dividend Equivalent Right”). The Director will have
a Dividend Equivalent Right with respect to each Deferred Stock Unit that is outstanding on the
dividend record date. The Director will have no Dividend Equivalent Rights as of the dividend
record date in respect of any Deferred Stock Units that have vested and been exchanged for Common
Stock; provided that the Director is the record holder of such Common Stock on or before such
dividend record date. In all events, each Dividend
Equivalent Right shall be paid not later than the 15th day of the third month following the
calendar year in which the applicable dividend record date occurs.

4

 

     10. Securities Laws.

          The Corporation may from time to time impose such conditions on the vesting of the Deferred
Stock Units, and/or the issuance of shares of Common Stock upon vesting of the Deferred Stock
Units, as it deems reasonably necessary to ensure that any grant of the Deferred Stock Units and
issuance of shares under this Agreement will satisfy the applicable requirements of federal and
state securities laws. Such conditions may include, without limitation, the partial or complete
suspension of the right to receive shares of Common Stock upon the vesting of the Deferred Stock
Units until the Deferred Stock Units have been registered under the Securities Act of 1933, as
amended. In all events, if the issuance of any shares of Common Stock is delayed by application of
this Section 10, such issuance shall occur on the earliest date on which it would not violate
applicable law.

     11. Grant Not to Affect Status as Director.

          Neither this Agreement nor the Deferred Stock Units granted hereunder shall confer upon the
Director any right to continue the Director’s service as a member of the Board of Directors of the
Corporation.

     12. Adjustments to Deferred Stock Units.

          In the event of any change or changes in the outstanding Common Stock by reason of any stock
dividend, recapitalization, reorganization, merger, consolidation, split-up, combination or any
similar transaction, the number of Deferred Stock Units granted to the Director under this
Agreement shall be adjusted by the Compensation Committee pursuant to Section 11.2 of the Plan in
such manner as the Committee deems appropriate to prevent substantial dilution or enlargement of
the rights granted to the Director.

     13. Miscellaneous.

          (a) This Agreement may be executed in one or more counterparts, all of which taken together
will constitute one and the same instrument.

          (b) The terms of this Agreement may only be amended, modified or waived by a written agreement
executed by both of the parties hereto.

          (c) 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.

          (d) The Deferred Stock Units under this Agreement are deferred compensation subject to Section
409A of the Code. This Agreement is intended to satisfy the
requirements of Section 409A of the Code and shall be interpreted in a manner consistent with such
requirements. To the extent that changes are necessary to ensure that the Deferred Stock Units
comply with any additional requirements imposed by future IRS guidance on the application of
Section 409A of

5

 

the Code, the Director and the Corporation agree to cooperate and work together in
good faith to timely amend this Agreement to comply with Section 409A of the Code.

          (e) The validity, performance, construction and effect of this Agreement shall be governed by
the laws of the State of Ohio, without giving effect to principles of conflicts of law; provided,
however, that matters of corporate law, including the issuance of shares of Common Stock, shall be
governed by the Delaware General Corporation Law.

     IN WITNESS WHEREOF, the parties have executed this Deferred Stock Unit Grant Agreement on the
date and year first above written.

	 	 	 	 	 	 	 
	ATTEST:	 	HEALTH CARE REIT, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 

	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	DIRECTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 

	 	 

6exv10w1

 

Exhibit 10.1

STOCK OPTION AGREEMENT

          This Stock Option Agreement (this “Agreement”) is made as of January 23, 2006 by and between
Spectrum Sciences & Software Holdings Corp. (the “Corporation”) and Michael M. Megless (the
“Optionee”).

RECITALS

          A.           Optionee is an employee of Horne Engineering Services, LLC, a subsidiary of the
Corporation. In consideration of Optionee’s serving as such, the Corporation’s board of directors
has agreed to grant stock options to the Optionee to purchase shares of the Corporation’s common
stock (the “Shares”). The stock options granted herein are not “incentive stock options” under
Section 422 of the Internal Revenue Code of 1986, as amended.

NOW THEREFORE, specifically incorporating these recitals herein, it is agreed as follows:

AGREEMENT

SECTION 1

GRANT OF OPTIONS

1.1           NUMBER OF SHARES. Subject to the terms and conditions of this Agreement, the Corporation
grants to Optionee, Options to purchase from the Corporation 326,353 Shares (the “Option Shares”).

1.2           EXERCISE PRICE. Each Option Share is exercisable, upon vesting, at the lesser price of $1.55
or the fair market value of the shares at the time of exercise (the “Option Price”).

1.3           TERM. The Expiration Date for all Options issued hereunder shall be January 22,
2008.

1.4           VESTING. The Options granted herein shall vest immediately.

1.5           CONDITIONS OF OPTION. The Options may be exercised immediately upon vesting, subject to
the terms and conditions as set forth in this Agreement.

SECTION 2

EXERCISE OF OPTION

2.1           DATE EXERCISABLE. The Options shall become exercisable by Optionee in accordance with
Sections 1.4 and 1.5 above.

2.2           MANNER OF EXERCISE OF OPTIONS AND PAYMENT FOR COMMON STOCK. The Options may be exercised by
the Optionee, in whole or in part, by giving written notice to the Secretary of the Corporation,
setting forth the number of Shares with respect to which Options are being exercised. The notice
shall be given pursuant to the Notice of Exercise of Stock Option form attached to this Agreement.
The purchase price of the Option Shares upon exercise of the Options by the Optionee shall be paid
in full by check payable to the order of the Corporation, or as otherwise permitted by the
Corporation’s stock option plan.

 

 

2.3           STOCK CERTIFICATES. Promptly after any exercise in whole or in part of the Options by
Optionee, the Corporation shall deliver to Optionee a certificate or certificates for the number of
Shares with respect to which the Options were so exercised, registered in Optionee’s name.

2.4           TAX WITHHOLDING. At the time the Option is exercised, in whole or in part, or at any time
thereafter as requested by the Corporation, the Optionee hereby authorizes withholding from payroll
and any other amounts payable to the Optionee, and otherwise agrees to make adequate provision for
(including by means of a cashless exercise to the extent permitted by the Corporation), any sums
required to satisfy the federal, state, local and foreign tax withholding obligations of the
Corporation, if any, which arise in connection with the Option, including, without limitation,
obligations arising upon (i) the exercise, in whole or in part, of the Option, (ii) the transfer,
in whole or in part, of any shares acquired upon exercise of the Option, (iii) the operation of any
law or regulation providing for the imputation of interest, or (iv) the lapsing of any restriction
with respect to any shares acquired upon exercise of the Option. The Optionee is cautioned that
the Option is not exercisable unless the tax withholding obligations of the Corporation are
satisfied. Accordingly, the Optionee may not be able to exercise the Option when desired even
though the Option is vested, and the Corporation shall have no obligation to issue a certificate
for such shares or release such shares from any escrow provided for herein.

SECTION 3

NONTRANSFERABILITY

3.1           RESTRICTION. The Options are not transferable by Optionee.

SECTION 4

NO RIGHTS AS SHAREHOLDER PRIOR TO EXERCISE

4.1           Optionee shall not be deemed for any purpose to be a shareholder of the Corporation with
respect to any share(s) subject to the Options under this Agreement to which the Options shall not
have been exercised until such share(s) shall be transferred to him upon the exercise of the
Option(s).

SECTION 5

ADJUSTMENTS

5.1           NO EFFECT ON CHANGES IN CORPORATION’S CAPITAL STRUCTURE. The existence of the Options shall
not affect in any way the right or power of the Corporation or its shareholders to make or
authorize any adjustments, recapitalization, reorganization, or other changes in the Corporation’s
capital structure or its business, or any merger or consolidation of the Corporation, or any issue
of bonds, debentures, preferred or preference stocks ahead of or affecting the Option Shares, or
the dissolution or liquidation of the Corporation, or any sale or transfer of all or any part of
its assets or business, or any other corporate act or proceeding, whether of a similar character or
otherwise.

5.2           ADJUSTMENT TO OPTION SHARES. The Option Shares are subject to adjustment upon
recapitalization, reclassification, consolidation, merger, reorganization, stock dividend, reverse
or forward stock split and the like. If the Corporation shall be reorganized, consolidated or
merged with another corporation, Optionee shall be entitled to receive upon the exercise of the
Option the same number and kind of shares of stock or the same amount of property, cash or
securities as Optionee would have been

2

 

entitled to receive upon the happening of any such corporate event as if Optionee had been,
immediately prior to such event, the holder of the number of Shares covered by the Option.

SECTION 6

TERMINATION OF EMPLOYMENT OR DEATH

6.1           The terms and conditions of paragraph 9 of the Corporation’s Amended and Restated Number 2 2004
Non-Statutory Stock Option Plan, adopted on November 15, 2004, as may be amended from time to time
in accordance with its terms, is incorporated herein by references, and shall govern the rights and
privileges of the Optionee with respect to the issues addressed therein.

SECTION 7

MISCELLANEOUS PROVISIONS

7.1           DISPUTES. Any dispute or disagreement that may arise under or as a result of this Agreement,
or any question as to the interpretation of this Agreement, may be determined by the Corporation’s
board of directors in its absolute and uncontrolled discretion, and any such determination shall be
final, binding, and conclusive on all affected persons.

7.2           NOTICES. Any notice that a party may be required or permitted to give to the other shall be in
writing, and may be delivered personally, by overnight courier or by certified or registered mail,
postage prepaid, addressed to the parties at their current principal addresses, or such other
address as either party, by notice to the other, may designate in writing from time to time.

7.3           LAW GOVERNING. This Agreement shall be governed by and construed in accordance with the laws
of the State of Delaware.

7.4           TITLES AND CAPTIONS. All section titles or captions contained in this Agreement are for
convenience only and shall not be deemed part of the context nor affect the interpretation of this
Agreement.

7.5           ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties and
supersedes any prior understandings and agreements between them respecting the subject matter of
this Agreement.

7.6           AGREEMENT BINDING. This Agreement shall be binding upon the heirs, executors, administrators,
successors and assigns of the parties hereto.

7.7           PRONOUNS AND PLURALS. All pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, neuter, singular, or plural as the identity of the person or persons may
require.

7.8           FURTHER ACTION. The parties hereto shall execute and deliver all documents, provide all
information and take or forbear from all such action as may be necessary or appropriate to achieve
the purposes of the Agreement.

7.9           PARTIES IN INTEREST. Nothing herein shall be construed to be to the benefit of any third
party, nor is it intended that any provision shall be for the benefit of any third party.

3

 

7.10           SAVINGS CLAUSE. If any provision of this Agreement, or the application of such provision to
any person or circumstance, shall be held invalid, the remainder of this Agreement, or the
application of such provision to persons or circumstances other than those as to which it is held
invalid, shall not be affected thereby.

[SIGNATURES ON NEXT PAGE]

4

 

      

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

SPECTRUM SCIENCES &
SOFTWARE HOLDINGS CORP.

	 	 	 	 	 
	By:

	 	/s/ Darryl K. Horne P.E.
 

	 	 
	 

	 	Name: Darryl K. Horne P.E.	 	 
	 

	 	            Title: President and CEO	 	 

The undersigned Optionee hereby acknowledges receipt of an executed original of this Agreement,
accepts the Options granted thereunder, and agrees to the terms and conditions thereof.

OPTIONEE

          /s/ Michael M. Megless

 

Name: Michael M. Megless

 

 

SPECTRUM SCIENCES AND SOFTWARE HOLDINGS CORP.

NOTICE OF EXERCISE OF STOCK OPTION

The undersigned hereby exercises the Stock Options granted by Spectrum Sciences &
Software Holdings
Corp. and seeks to purchase ________________ shares of Common Stock of the Corporation pursuant
to said Options. The undersigned understands that this exercise is subject to all the terms and
provisions of the Stock Option Agreement dated as of ________________.

(Check Applicable Box)

          Enclosed is a check in the sum of US
$________________ as payment for such shares.

 

 

 

Signature of Optionee

 

 

Date: _________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}]]