Document:

Form of Restricted Stock Agreement effective 05/07/2003 (Directors)

 EXHIBIT 10.31 
 (Rev. 5/03) 
 Directors 
  
 RESTRICTED STOCK AGREEMENT 
  
 THIS RESTRICTED STOCK AGREEMENT (the “Agreement”), is made by and between Health Care Property Investors,
Inc., a Maryland corporation (the “Company”), and             , a non-employee member of the Company’s Board of Directors (“Holder”), effective
as of                      , 20             (“Grant Date”).

  
 WHEREAS, the Company wishes to carry out the Health Care
Property Investors, Inc. 2000 Stock Incentive Plan, as amended and/or restated from time to time (the “Plan”); and 
  
 WHEREAS, the Plan provides for the grant of shares of Common Stock subject to certain Restrictions (as defined below) to Non-Employee Directors Board as
an inducement for Non-Employee Directors to enter into or remain in the service of the Company and as an incentive for increased efforts during such service; 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do hereby agree as follows: 
  
 ARTICLE I. 
 DEFINITIONS 
  
 Whenever the following terms are used in this Agreement they shall have the meaning specified below unless the context clearly indicates to the contrary.
The masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates. All capitalized terms used herein without definition shall have the meaning ascribed to such terms in the Plan. 

  
 Section 1.1 - Permissible
Termination of Service. 
  
 “Permissible Termination
of Service” shall mean a Holder’s (i) death, (ii) Disability, (iii) removal from the Company’s Board of Directors without cause (not including a failure to be re-elected) or (iv) Retirement from the Company’s Board of
Directors. The Board, in its absolute discretion, shall determine the effect of all matters and questions relating to a Permissible Termination of Service, including without limitation whether a Termination of Service or Permissible Termination of
Service has occurred. 
  
 Section 1.2 -
Restricted Shares. 
  
 “Restricted
Shares” shall mean the shares of Common Stock granted under this Agreement that are subject to Restrictions. 
  
 Section 1.3 - Restrictions. 
  
 “Restrictions” shall mean the vesting requirements set forth in Section 3.1, the forfeiture rights set forth in Section 3.2 and the
restrictions on sale or other transfer set forth in Section 3.3. 
  

 Section 1.4 - Secretary. 
  
 “Secretary” shall mean the Corporate Secretary of the
Company. 
  
 Section 1.5 - Termination
of Service 
  
 “Termination of Service”
shall mean termination of Holder’s service with the Company as a director, other than a Permissible Termination of Service. The Board, in its absolute discretion, shall determine the effect of all matters and questions relating to a Termination
of Service, including without limitation whether a Termination of Service or Permissible Termination of Service has occurred. 
  
 ARTICLE II. 
 ISSUANCE OF RESTRICTED
SHARES 
  
 Section 2.1 -
Issuance of Restricted Shares. 
  
 In consideration of the
recitals and for other good and valuable consideration, on the Grant Date the Company agrees to and does hereby issue to Holder             
(            ) Restricted Shares (i.e., shares of Common Stock subject to the Restrictions and other conditions set forth in this Agreement). 
  
 Section 2.2 - Consideration to Company.

  
 As partial consideration for the issuance of Restricted
Shares by the Company, Holder agrees to render faithful and efficient services to the Company for a period of at least one (1) year from the Grant Date. Notwithstanding the foregoing, Holder understands and agrees that, except as expressly provided
herein, in the event of a Termination of Service, Holder shall forfeit all Restricted Shares. Nothing in this Agreement or in the Plan shall confer upon Holder any right to continue as a director of the Company, or shall interfere with or restrict
in any way the rights of the Company, which are hereby expressly reserved, to remove Holder from the Board. 
  
 Section 2.3 - Adjustments in Restricted Shares. 
  
 The Board may adjust the Restricted Shares in accordance with the provisions of Section 11 of the Plan. 
  
 ARTICLE III. 
 RESTRICTIONS 
  
 Section 3.1 – Vesting and Lapse of Restrictions. 
  
 (a) Subject to Sections 3.2(b) and 3.4 concerning accelerated vesting under specified circumstances, the Restrictions with
respect to each Restricted Share shall lapse as and to the extent such Restricted Shares vest in accordance with the following schedule, conditioned upon continued employment or service with the Company through the applicable vesting date. Except as
provided in Sections 3.2(b) and 3.4, the vesting of Restricted Shares and removal of Restrictions on Restricted Shares shall cease as of the date of Termination of Service of the Holder. 
  

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	 Number of Shares

	  	Effective Date of Vesting

		
	 ______________________________
	  	First Anniversary of the Grant Date
		
	 ______________________________
	  	Second Anniversary of the Grant Date
		
	 ______________________________
	  	Third Anniversary of the Grant Date
		
	 ______________________________
	  	Fourth Anniversary of the Grant Date

  
 (b) By resolution, the
Board may, on such terms and conditions as it deems appropriate, remove any or all of the Restrictions (including without limitation, the Board may accelerate vesting) at any time or from time to time. 
  
 Section 3.2 - Forfeiture. 
  
 (a) Termination of Service, Other Than a Permissible Termination of
Service. Upon a Termination of Service of Holder, other than a Permissible Termination of Service, all Restricted Shares outstanding as of such Termination of Service shall be automatically forfeited and cancelled effective as of such
Termination of Service. 
  
 (b) Permissible Termination of
Service. If there is a Permissible Termination of Service of Holder, all Restricted Shares shall vest in full and all Restrictions shall lapse immediately and automatically upon such Permissible Termination of Service for all Restricted Shares,
and no such shares shall be forfeited or cancelled. 
  
 Section 3.3 - Restriction on Transfer of Restricted Shares. 
  
 Holder shall not sell, exchange, transfer, alienate, hypothecate, pledge, encumber or assign any Restricted Shares, or any rights with respect thereto. Neither the Restricted Shares nor any interest or right therein
or part thereof shall be liable for the debts, contracts, or engagements of Holder or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether
such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy) and any attempted disposition thereof shall be null and void and of no
effect. 
  
 Section 3.4 - Acceleration
of Vesting and Lapse of Restrictions. 
  
 (a) In the event of
a Change in Control, the Restrictions shall, immediately prior to the effective date of the Change in Control, automatically lapse for all Restricted Shares; provided, however, that the Restrictions shall not so lapse if and to the extent the
Restricted Shares 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 Board, and its determination shall be final, binding and conclusive. The Board may make such
determinations and adopt such rules and conditions as it, in its absolute discretion, deems appropriate in connection with such acceleration of lapse of Restrictions, including, but not by 

  

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way of limitation, 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 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 Board may in its sole discretion: 
  
 (i) Make the Restricted Shares fully vested; or 
  

(ii) Make any other adjustments or amendments to the Restricted Shares and substitute new restricted shares. 
  
 Section 3.5 - Escrow. 
  
 (a) The Secretary of the Company or any other person designated by the Board
as escrow agent shall retain physical custody of any certificates representing the Restricted Shares until and to the extent (i) such Restricted Shares have vested and all Restrictions have been removed or lapsed as to such shares under this
Agreement, or (ii) such shares have been forfeited or cancelled pursuant to Section 3.2. To ensure the delivery of Holder’s Restricted Shares upon forfeiture, Holder hereby appoints the Secretary of the Company or any other designated escrow
agent as Holder’s attorney-in-fact to assign and transfer unto the Company (or such designee), such Restricted Shares, if any, pursuant to Section 3.2. 
  
 (b) The Secretary, or other escrow agent, shall not be liable for any act he or she may do or omit to do with respect to holding the Restricted Shares in
escrow and while acting in good faith and in the exercise of his or her judgment. 
  
 Section 3.6 - Legend. 
  
 Any share certificate or other evidence of the Restricted Shares issued hereunder may at the discretion of the Company be endorsed with or subject to the
following legend (in addition to any legend required under applicable state securities laws): 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND CERTAIN FORFEITURES AS SET FORTH IN A RESTRICTED STOCK AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF
WHICH IS ON FILE WITH THE SECRETARY OF THE ISSUER, AND SUCH SHARES MAY NOT BE, DIRECTLY OR INDIRECTLY, OFFERED, TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNDER ANY CIRCUMSTANCES, EXCEPT PURSUANT TO THE PROVISIONS OF
SUCH AGREEMENT. 
  
 Section 3.7 –
Vested Shares without Restrictions. 
  
 (a) As and to the
extent the Restricted Shares vest in accordance with the terms of this Agreement, the Restrictions on such shares shall lapse and, and subject to 

  

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compliance with Section 3.7(b), such vested shares of Common Stock shall be delivered to the Holder or for the benefit of his or her account without the
legend referenced in Section 3.6. Such vested shares shall cease to be considered Restricted Shares subject to the terms and conditions of this Agreement, and shall be shares of Common Stock of the Company free of all Restrictions. 
  
 (b) Notwithstanding the foregoing, vested shares shall not be delivered to
the Holder or for the benefit of or to his account unless and until the Holder shall have paid to the Company in cash or made provisions for payment through withholding against income, the full amount of all federal and state (or applicable foreign)
withholding or other employment taxes applicable to the taxable income of the Holder resulting from the grant of the Restricted Shares or the lapse or removal of the Restrictions. 
  
 Section 3.8 - Restrictions on New Shares and Distributions. 
  
 In the event of any dividend or other distribution (including ordinary cash
dividends, and whether in the form of Common Stock, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-off, spin-off, combination, purchase,
liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or exchange of Common Stock or other securities of the Company, or issuance of warrants or other rights to purchase
Common Stock or other securities of the Company, or other similar transaction or event, is paid, issued, exchanged or distributed in respect of Restricted Shares, such new or additional or different shares or securities or property (including cash)
which are attributable to Holder in his capacity as the owner of the Restricted Shares, shall be considered to be Restricted Shares and shall be subject to all of the Restrictions, unless the Board shall, in its discretion, otherwise provide.

  
 ARTICLE IV. 
 MISCELLANEOUS 
  
 Section 4.1 - Administration. 
  
 The Board shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of
the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Board in good faith shall be final and binding upon Holder, the Company and all other
interested persons. No member of the Board shall be personally liable for any action, determination, or interpretation made in good faith with respect to the Plan or the Restricted Shares.  
  
 Section 4.2 - Conditions to Issuance of Stock.

  
 The Restricted Shares may be either previously authorized but
unissued shares or issued shares which have then been reacquired by the Company. Such shares shall be fully paid and nonassessable. The Company shall not be required to issue or deliver any shares of stock pursuant to this Agreement prior to
fulfillment of all of the following conditions: 
  
 (i) The admission of such shares to listing on all stock exchanges on which such class of stock is then listed, if applicable; and 
  

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 (ii) The completion of any registration or other qualification of such shares under any
state or federal law or under rulings or regulations of the Securities and Exchange Commission or of any other governmental regulatory body, if applicable, or the receipt of further representations from Holder as to investment intent or completion
of other actions necessary to perfect exemptions, as the Board shall, in its absolute discretion, deem necessary or advisable; and 
  
 (iii) The obtaining of any approval or other clearance from any state or federal governmental agency which the Board shall, in its
absolute discretion, determine to be necessary or advisable; and 
  
 (iv) The lapse of such reasonable period of time as the Board may from time to time establish for reasons of administrative convenience; and 
  
 (v) The receipt by the Company of payment of any applicable withholding tax. 
  
 Section 4.3 - Rights as Stockholder.

  
 Holder shall have all the rights of a stockholder with
respect to the Restricted Shares, including the right to vote and receive all dividends or other distributions paid or made with respect to the Restricted Shares, subject to Section 3.8; provided, however, that in the discretion of the
Board, any extraordinary distributions with respect to the Common Stock may be released from the Restrictions. 
  
 Section 4.4 - Withholding Tax. 
  
 Holder agrees that in the event the issuance of the Restricted Shares or the expiration or removal of Restrictions thereon results in the Holder’s
realization of income which for federal, state or local income tax purposes is, in the opinion for the Company, subject to withholding of tax at source by the Company, the Holder will pay to the Company an amount equal to such withholding tax or the
Company may withhold such amount from the Holder’s salary or from dividends deposited with the Company with respect to the Restricted Stock. 
  
 Section 4.5 - Section 83(b) Election. 
  
 No Holder may make an election under Section 83(b) of the Code, or any successor section thereto, to be taxed with respect
to all or any portion of the Restricted Shares as of the date of issuance of the Restricted Shares rather than as of the date or dates upon which the Holder would otherwise be taxable under Section 83(a) of the Code, without the prior consent of the
Committee, which consent may be withheld in its sole discretion. If a Holder makes a permitted election under Section 83(b) of the Code, the Holder shall deliver a copy of such election to the Company immediately after filing such election with the
Internal Revenue Service. Section 83(b) elections must be filed with the Internal Revenue Service within 30 days following the Grant Date. 
  
 Section 4.6 - Notices. 
  
 Any notice to be given by Holder under the terms of this Agreement shall be addressed to the Secretary or his or her office. Any notice to be given to
Holder shall be addressed to him at the address given beneath his signature hereto. By a notice given pursuant to 

  

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this Section, either party may hereafter designate a different address for notices to be given to him. Any notice which is required to be given to Holder
shall, if Holder is then deceased, be given to Holder’s personal representative if such representative has previously informed the Company of his or her status and address by written notice under this Section. Any notice shall be deemed duly
given when enclosed in a properly sealed envelope addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service or when delivered to a courier that guarantees
overnight delivery. 
  
 Section 4.7 -
Titles. 
  
 Titles are provided herein for convenience
only and are not to serve as a basis for interpretation or construction of this Agreement. 
  
 Section 4.8 - Construction. 
  
 This Agreement shall be administered, interpreted and enforced under the internal laws of the state of California. 
  
 Section 4.9 - Conformity to Securities Laws.

  
 Holder acknowledges that the Plan and this Agreement are
intended to conform to the extent necessary with all provisions of all applicable federal and state laws, rules and regulations and to such approvals by any listing, regulatory or other governmental authority as may, in the opinion of counsel for
the Company, be necessary or advisable in connection therewith. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Restricted Shares is granted, only in such a manner as to conform to such laws, rules and
regulations. To the extent permitted by applicable law, the Plan, this Agreement and the Restricted Shares shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
  
 Section 4.10 - Amendments. 
  
 This Agreement and the Plan may be amended without the consent of Holder
provided that such amendment would not alter, terminate, impair or adversely affect any rights of Holder under this Agreement. 
  
 [Signature Page Follows] 
  

 Page 7 

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

			
	 HEALTH CARE PROPERTY INVESTORS, INC.
 a
Maryland corporation

		
	By	 	 
	 	 	

		
	 Title
	 	 
	 	 	

  

	
	HOLDER
	
	  
	

	[Name of Holder]
	
	  
	

	Address
	
	  
	

	City, States Zip

  
 Holder’s Taxpayer Identification
Number: ___________________________ 
  

 Page 8Form of Performance Award Letter effective 05/07/2003

 EXHIBIT 10.32 
  
 [Date] 
  
 [Name of Recipient] 
 [Address] 
 [City, State ZIP] 
  

	Re:	Your Performance Award under the 2000 Stock Incentive Plan 

  
 Dear [Name]: 
  
 Health Care Property Investors, Inc. (“HCP”) is pleased to inform you that you have been awarded a stock performance award (“Award”) under the Health Care Property Investors, Inc. 2000 Stock
Incentive Plan, as amended from time to time (the “Plan”). HCP’s stockholders approved the grant of stock performance awards under the Plan at the 2003 Annual Meeting of Stockholders. The Plan is administered by the Compensation
Committee of the Board of Directors (the “Committee”). The Committee granted your Award on {Grant Date}. 
  
 Your Award is payable, if at all, in shares of HCP Common Stock. In addition, if any shares of HCP Common Stock are issued to you pursuant to the Award,
you will receive cash in an amount equal to the cash dividends that would have been paid on such shares if such shares had been issued on {First Day of the Performance Period}. The details of your Award are discussed below. 
  
 Stock Portion of Your Award 
  
 Your Award represents the right to an issuance of shares of HCP Common Stock
to you on a deferred basis, subject to (i) your continued employment with HCP until the actual number of shares issuable to you are determined by the Committee, and (ii) HCP’s satisfaction of certain financial objectives over a three-year
period commencing {First Day of the Performance Period}. The Committee has determined the “Target Units” underlying your Award. The number of Target Units underlying your Award is
                    . 
  
 The number of shares of Common Stock that will actually be issued to you (the “Final Shares”) will equal a percentage of your Target Units,
ranging from 0% to 200% of your Target Units. This percentage is based upon HCP’s actual performance against targeted performance under the following “Performance Criteria:” (a) HCP’s annual Total Return to
Stockholders1, 
  

  

	1	For these purposes, annual Total Return to Stockholders for any calendar year shall equal the sum of [(X) the per share Fair Market Value as of December 31 of such
year minus the per share Fair Market Value of the Common Stock as of January 1 of such year and (Y) the aggregate dividends paid to stockholders during such calendar year], divided by the per share Fair Market Value as of January 1 of such year. For

  

 and (b) the increase in HCP’s annual Funds From Operations per share2, each as averaged over the three year period from {First Day of the Performance Period} until {Last Day of the Performance Period} (the
“Performance Period”). This percentage is pro-rated between the thresholds of 0%, 50%, 100% and 200% based upon HCP’s performance under the applicable Performance Criteria. There is no pro-rating above the 200% threshold for either
Performance Criteria. 
  
 For purposes of determining your Final
Shares, if any, your Target Units are divided into two equal parts. The number of Final Shares, if any, issuable with respect to one half of your Target Units (             Target
Units or your “TRS Target Units”) will be determined based on HCP’s annual Total Return to Stockholders, as averaged over the Performance Period (“Average TRS”). Average TRS is determined by adding HCP’s annual Total
Return to Stockholders for each of the three years during the Performance Period, and dividing that sum by three. 
  
 The number of Final Shares, if any, issuable with respect to the other half of your Target Units
(             Target Units or your “FFO Target Units”) will be determined based on the increase of HCP’s annual Funds From Operations per share over the previous year,
for each of the three years in the Performance Period, with such increases averaged over the Performance Period (“Average FFO Increase). The Average FFO Increase is determined by adding the increase in HCP’s annual Funds From Operations
per share for each of the three years during the Performance Period over the previous year’s annual Funds From Operations per share, and dividing that sum by three. 
  
 The total Final Shares you will receive, if any, will equal the sum of (i) the Final Shares issuable to you, if any, based
on Average TRS, plus (ii) the Final Shares issuable to you, if any, based on Average FFO Increase. Only whole shares are issuable. The Committee shall make appropriate adjustment of fractional shares. The charts below illustrate how the Final
Shares, if any, underlying your Award will be calculated: 
  
 Average Annual Total Return to Stockholders 
  

				
	 Average Annual Total Return to
 Stockholders over the Performance Period
 (Average TRS)

	  	Final Shares issuable, stated as a
percentage of your TRS Target Units

	 
	 Less than the Board Determined Minimum%
	  	0	%
	 Board Determined Medium Threshold%
	  	50	%
	 Board Determined Target Threshold%
	  	100	%
	 Board Determined Maximum Threshold% or greater
	  	200	%

  

 these purposes, (i) the Fair Market Value shall equal the closing price of a share of HCP Common Stock on the New York Stock Exchange on such date, or if
shares were not traded on such date, then on the next preceding date on which a trade occurred, and (ii) reinvestment of quarterly dividends (before consideration of income taxes) shall be assumed. 
  

	2	For these purposes, Funds From Operations shall be determined as prescribed by the National Association of Real Estate Investment Trusts (NAREIT) as in effect on
{First Day of the Performance Period}. Annual Funds From Operations per share shall be based off fully diluted outstanding shares of common stock. 

  

 2 

				
	
	Average Annual Funds From Operations Per Share	 
		
	 Increase in Average Annual Funds from
 Operations Per Share Per Year over the
 Performance Period (Average
FFO
 Increase)

	  	Final Shares issuable, stated as a percentage
of FFO Target Units

	 
	 Less than the Board Determined Minimum%
	  	0	%
	 Board Determined Medium Threshold%
	  	50	%
	 Board Determined Target Threshold%
	  	100	%
	 Board Determined Maximum Threshold% or greater
	  	200	%

  
 Within 90 days
following the closing of the Performance Period, HCP’s Chief Financial Officer will determine HCP’s actual performance under the Performance Criteria using accounting principles consistently applied. The Committee will review these
determinations and certify in writing the extent of HCP’s actual performance under the Performance Criteria, and the number of Final Shares issuable to you. The date upon which the Committee makes this certification is referred to as the
“Determination Date.” 
  
 Upon the Determination Date,
and provided that you have continued to be employed by HCP through and including the Determination Date, all Target Units will cease to be outstanding and you will have a right to the number of Final Shares certified by the Committee on the
Determination Date to be issuable to you, if any. The Final Shares will be issued to you or your account within thirty (30) days of the Determination Date, subject to HCP’s satisfaction of all applicable regulatory and legal requirements.

  
 Cash Portion of the Award 
  
 If Final Shares are certified by the Committee as issuable to you under your
Award, you will also receive a cash payment as part of your Award. The cash portion of the Award payable to you will equal the aggregate amount of cash dividends declared, if any, by HCP during the Performance Period that would have been paid on
your Final Shares if such Final Shares had been issued at the commencement of, and held by you throughout the duration of, the Performance Period. The exact amount of your Cash payment will be determined and certified in writing by the Committee on
the Determination Date. If you are not awarded any Final Shares you will not receive any cash payment as part of your Award. Any cash payable to you under the Award will be paid to you by check within thirty (30) days following the Determination
Date. 
  

 3 

 Rights as a Stockholder 
  
 You have no rights or privileges as a stockholder of HCP with respect to the Target Units or the underlying Common Stock.
Until the Final Shares are issued to you following the Determination Date, you will have no rights or privileges as a stockholder concerning the Final Shares or the underlying Common Stock. 
  
 Termination of Employment Prior to Determination Date. 
  
 A condition to the issuance of your Final Shares, if any, and the payment of
the cash portion of your Award, if any, is that you must be employed by HCP continuously through the Determination Date. Except as set forth below under “Change in Control” and under “Termination by Reason of Death or
Disability”, if your employment with HCP is terminated for any reason at any time prior to the Determination Date, effective as of termination of your employment, your Award (including all Target Units) will be automatically forfeited for no
consideration and you will have no rights with respect to the Award, the Target Units or any Final Shares and HCP will cease to have any obligations with respect to the Award. 
  
 Change In Control 
  
 Award Not Continuing, Assumed or Substituted as a Result of the Change in Control. In the event of a Change in Control (as defined under the Plan)
during the Performance Period and as a result of which Change in Control this Award does not continue or is not assumed or is not substituted for a new incentive award covering stock of the successor employer (or a parent or subsidiary thereof),
appropriately adjusted, then the Performance Period shall be shortened and shall run from {First Day of the Performance Period} until the effective date of such Change in Control, and the Award shall be paid in shares of HCP Common Stock and
cash, if any, for such abbreviated Performance Period in accordance with the Performance Criteria and formulas set forth above. 
  
 Award Continued, Assumed or Substituted as a Result of the Change in Control. In the event of a Change in Control during the Performance Period and
as a result of which Change in Control this Award is continued or assumed or substituted for a new incentive award covering stock of the successor employer (or a parent or subsidiary thereof), then the Award, Target Units and the Performance
Criteria shall be appropriately adjusted by the Committee to give effect to such Change in Control. 
  
 Special Severance Benefits Following Change in Control for Certain Employees. For those employees who are a party to an employment, severance,
change in control or similar agreement or letter with HCP that provides benefits upon certain terminations following a Change in Control (a “Change in Control Agreement”), in the event of a termination of employment by you for good reason
(as defined in the Change in Control Agreement), or a termination of your employment by HCP other than for cause or disability (each as defined in the Change in Control Agreement), each within two years following such Change in Control, then the
Performance Period shall be shortened and shall run from {First Day of the Performance Period} until the effective date of such termination or Change in Control, whichever is more favorable to you, and the Award shall be paid in shares of HCP
Common Stock and cash, if any, 

  

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for such abbreviated Performance Period in accordance with the Performance Criteria and formulas set forth above, appropriately adjusted by the Committee to
give effect to such Change in Control. 
  
 Termination by Reason of Death or
Disability 
  
 If your employment with HCP is terminated
at any time prior to the Determination Date by reason of death or Disability, then the Performance Period shall be truncated to the most recent fiscal period for which Total Return to Stockholders and Funds From Operations per share can be
determined, and the number of Target Units shall be reduced on a pro-rata basis to reflect the truncated performance period (e.g., if you die at the commencement of the third year of the performance period, two years of Total Return to Stockholders
and Funds From Operations per share shall be averaged, and the number of Target Units will be reduced to 2/3 of the original grant). 
  
 Miscellaneous 
  
 Not Assignable. Your Award is not assignable or transferable and shall not be subject to any encumbrance, pledge or charge of any nature.

  
 Employment at Will. Your Award does not confer upon you
any right to continue in the employ of HCP or affect the right of HCP to terminate your employment at any time with or without cause, which right HCP expressly reserves. 
  
 Section 16 Obligations. If you are subject to the reporting requirements of Section 16 of the Securities Exchange Act
of 1934, as amended, you are likely to have reporting and other obligations under Section 16 concerning the Final Shares issuable to you. The date of issuance of the Final Shares for purposes of Section 16 is likely to be the Determination Date.
Please consult with legal counsel concerning your reporting and other obligations under Section 16 with respect to the Award. 
  
 Committee and CFO Discretion. In making their respective determinations, the Committee and the chief financial officer may rely upon the advice of
accountants, attorneys, consultants or other persons it chooses to employ for such purposes, and may specifically require, in its discretion, a review and/or confirmation from HCP’s independent auditors of HCP’s performance under the
Performance Criteria during the Performance Period. The Committee shall have the power to interpret the Plan and this Letter Agreement and to adopt such rules for the administration, interpretation and application of this Letter Agreement as are
consistent with the Plan and to interpret or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and binding upon you, HCP and all other interested persons.

  
 Adjustment in Securities. In the event that the
outstanding shares of the stock subject to the Target Units are increased, decreased, or exchanged for a different number or kind of shares of HCP or other securities of HCP, or of another corporation, or if additional shares or new or different
shares or other securities are distributed with respect to such shares of Common Stock or other securities, through merger, consolidation, sale of all or substantially all the property of HCP, reorganization, recapitalization, reclassification,
stock dividend, stock split, reverse stock 

  

 5 

 
split or other distribution with respect to such shares of Common Stock or other securities, the Committee shall make an appropriate and equitable adjustment
in the number and kind of shares underlying the Target Units. Any such adjustment made by the Committee shall be final and binding upon you, HCP and all other interested persons. 
  
 Interpretation. This Letter Agreement shall be administered, interpreted and enforced under the internal laws of the
State of California. This Letter Agreement and the Plan embody the entire understanding and agreement of the parties in relation to the subject matter hereof; provided, however, that the terms of any Change in Control Agreement, if applicable, shall
supersede and control over the applicable terms of this Agreement. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement. 
  
 This Award Letter is qualified by the provisions of the Plan, and in the
event of any inconsistencies between the Plan and this Award Letter, the provisions of the Plan will control. You are encouraged to read this Award Letter, the Plan, and the Plan Prospectus. A copy of the Plan and the Prospectus are available from
Edward J. Henning, Senior Vice President, Corporate Secretary and General Counsel. 
  
 Summary. Described for you on the attached Schedule is a summary of your Award, including the Target Units subject to your Award, the number of Target Units allocated to each Performance Criteria, and the range
of Final Shares that may be issuable to you, if any. 
  
 Please
execute this Award Letter, and return it to Edward J. Henning, Senior Vice President, Corporate Secretary and General Counsel. A copy of this Award Letter is enclosed for your records. 
  
 If you have any questions or comments with respect to your Award please contact Mr. Henning, at (949) 794-1906 or
EHENNING@HCPI.com. 
  

 6 

	
	This Letter Agreement has been executed on                 , 200_.
	
	 HEALTH CARE PROPERTY INVESTORS, INC.

	
	 
	

	 By: James F. Flaherty III,
 Chief Executive Officer and President

	
	 
	

	 And: Edward J. Henning,
 Senior Vice President, Corporate Secretary
 and General Counsel

  
 ********************************************************************** 
  
 I acknowledge I have received this Award Letter with respect to my Award, as well as a copy of the Prospectus, and understand and agree to the terms herein. 
  
 Employee’s Signature: _____________________________________ 
  
 Employee’s Name: ________________________________________ 
  

 7 

 Schedule to Award Letter 
  
 of 
  

  
  

			
	 Award Date:
	  	 
	 	  	

		
	 Target Units underlying your Award:
	  	 
	 	  	

		
	 Target Units Applicable to each Performance Criteria:
	  	 
		
	 TRS Target Units:
	  	 
	 	  	

		
	 FFO Target Units:
	  	 
	 	  	

		
	 Range of Final Shares Issuable
	  	0 to shares
	 	  	

		
	 Performance Period with Respect to your Award:
	  	 
	 	  	

  

 8

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