Document:

EXHIBIT 10.19

 

LA QUINTA CORPORATION

 

FORM OF NON-QUALIFIED STOCK
OPTION

 

GRANTED PURSUANT TO THE LA QUINTA
CORPORATION

2002 STOCK OPTION AND
INCENTIVE PLAN

 

For good and valuable consideration, receipt of which is
hereby acknowledged, LA QUINTA CORPORATION (the “Company”) does
hereby grant to the individual named on the last page of this document (the
“Grantee”) an option to purchase the number of shares of common stock of the
Company and an equal number of shares of Class B common stock of La Quinta
Properties, Inc. (“Paired Shares”) set forth on the last page of this document
(the “Option”) pursuant to the Company’s 2002 Stock Option and Incentive Plan
(hereinafter called the “Plan”).  This
Option is a Non-Qualified Stock Option (as defined in the Plan) with respect to
the common stock of the Company and Class B common stock of La Quinta
Properties, Inc.  Capitalized terms in
this Agreement shall have the meaning specified in the Plan, unless a different
meaning is specified herein.

 

The price at which the Paired Shares may be purchased
pursuant to this Option (the “Exercise Price”) is set forth on the last page of
this document and is subject to adjustment as provided in the Plan.

 

This Option is subject to all of the provisions of the
Plan and is subject to the following additional terms and conditions.

 

1.             So long as Grantee remains an
eligible participant under the Plan, this Option may be exercised only as
follows:  (a) commencing on the first
anniversary of the date hereof and
until the second such anniversary, only to the extent of one-quarter of the
number of Paired Shares covered hereby; (b) commencing on the second
anniversary of the date hereof and until the third such anniversary, only to
the extent of one-half of the number of Paired Shares covered hereby, less the
number of Paired Shares as to which this Option has been exercised previously;
(c) commencing on after the third anniversary of the date hereof and until the
fourth such anniversary, only to the extent of three-quarters of the number of
Paired Shares covered hereby, less the number of Paired Shares as to which this
Option has been exercised previously; and (d) after the fourth anniversary of
the date hereof, to the extent of the full number of Paired Shares covered
hereby, less the number of Paired Shares as to which this Option has been
exercised previously; and this Option may not be exercised at all during the
first year after the date hereof or after the tenth anniversary of the date
hereof.

 

 

The period during
which this Option may be exercised is hereinafter referred to as the “Exercise
Period.”

 

2.             (a)           If
the Grantee ceases to be an eligible participant under the Plan by reason of
the Grantee’s death during the Exercise Period, this Option shall be
exercisable by the Grantee’s beneficiary, but only during the six months
following the Grantee’s death and in no event after the expiration of the
Exercise Period.  During such six-month period, this Option
shall be exercisable only as to the number of Paired Shares, if any, as to
which it was exercisable immediately prior to the Grantee’s death.  If no beneficiary has been designated by a
deceased Grantee, or if the designated beneficiaries have predeceased the
Grantee, the beneficiary shall be the Grantee’s estate.

 

(b)           If the Grantee ceases to be an
eligible participant by reason of retirement or early retirement (as determined
by the Committee), this Option shall be exercisable by the Grantee for the
remainder of the Exercise Period but only as to the number of Paired Shares, if
any, as to which it was exercisable immediately prior to such cessation.

 

(c)           If the Grantee ceases to be an
eligible participant under the Plan for any cause other than death, or
retirement or early retirement (as determined by the Committee) during the
Exercise Period, this Option shall be exercisable by the Grantee only during
the 90 days following such cessation (but in no event after the expiration of
the Exercise Period) and only as to the number of Paired Shares, if any, as to
which it was exercisable immediately prior to such cessation.

 

3.             This Option shall not be
exercisable unless either (a) a registration statement under the Securities Act
of 1933, as amended, with respect to the Paired Shares to be issued on the
exercise of the Option shall have become, and continues to be, effective, or
(b) the Grantee (i) shall have represented, warranted and agreed, in form and
substance satisfactory to the Company, at the time of exercising the Option
that he or she is acquiring the Paired Shares for his or her own account, for
investment and not with a view to or in connection with any distribution, (ii)
shall have agreed to restrictions on transfer in form and substance
satisfactory to the Company and (iii) shall have agreed to an endorsement which
makes appropriate reference to such representations, warranties, agreements and
restrictions on the certificate(s) representing the Paired Shares to be issued
upon exercise of the Option.

 

PAIRED SHARES ISSUED UPON EXERCISE OF THE OPTION WILL BE
SUBJECT TO ALL RESTRICTIONS ON TRANSFER IMPOSED BY THE 

 

2

 

COMPANY’S CERTIFICATE OF INCORPORATION OR BY-LAWS OR BY APPLICABLE STATE
OR FEDERAL SECURITIES LAWS.

 

4.             This Option may be exercised in
accordance with its terms by the giving of written notice, in person or by
registered mail, to the Company, marked “Attention:  Secretary of La Quinta Corporation,” at the principal place
of business of La Quinta Corporation, 909 Hidden Ridge, Suite 600, Irving,
TX  75038, of the election to purchase
Paired Shares pursuant hereto accompanied by the full payment for all Paired
Shares being so purchased.  Payment of
the purchase price may be made in one or a combination of the following
methods:  (i) in cash or by electronic
funds transfer; (ii) by check payable to the order of the Company; (iii)
through the delivery (or attestation to ownership) of Paired Shares that have
been purchased by Grantee on the open market or that have been held by Grantee
for at least six months and are not subject to restrictions under any plan of
the Company; or (iv) by notice and third party payment in such manner as may be
authorized by the Committee.  In the
event the Grantee chooses to pay the purchase price by previously-owned Paired
Shares through the attestation method, the number of Paired Shares issued to
the Grantee upon the exercise of the Option shall be net of the Paired Shares
attested to.

 

THIS OPTION IS NOT TRANSFERABLE OTHERWISE THAN BY WILL
OR THE LAWS OF DESCENT AND DISTRIBUTION OR PURSUANT TO A QUALIFIED DOMESTIC
RELATIONS ORDER AND, DURING THE EXERCISE PERIOD, IS EXERCISABLE DURING THE
LIFETIME OF THE GRANTEE ONLY BY HIM OR HER OR THE PERSONAL REPRESENTATIVE OF
HIM OR HER.

 

5.             This
Option is not intended to qualify as an “incentive stock option” under Section
422 of the Code.

 

6.             The
Optionee shall, not later than the date as of which the exercise of this Option
becomes a taxable event for federal income tax purposes, pay to the Company or
make arrangements satisfactory to the Administrator for payment of any federal,
state, and local taxes required by law to be withheld on account of such
taxable event.  The Optionee may elect
to have the minimum required tax withholding obligation satisfied, in whole or
in part, by (i) authorizing the Company to withhold from Paired Shares to be
issued pursuant to this Option a number of Paired Shares with an aggregate Fair
Market Value (as of the date the withholding is effected) that could satisfy
the minimum required withholding amount due, or (ii) transferring to the
Company, a number of Paired Shares owned by the Grantee with an aggregate Fair
Market Value (as of the date the withholding is effected) that would satisfy
the minimum required withholding amount due.

 

3

 

	
  Name
  of Grantee:  

  	
   

  
	
   

  	
   

  
	
  Number of Paired  Shares subject to this Option:

  	
   

  
	
   

  	
   

  
	
  Exercise
  Price per
  Paired Share:

  	
   

  
	
   

  	
   

  
	
  Effective
  Date:

  	
   

  
	
   

  	
   

  
	
  Expiration
  Date of Exercise Period:

  	
   

  

 

 

	
   

  	
  LA QUINTA CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Francis W. Cash

  
	
   

  	
   

  	
  Its Chief Executive Officer and President

  

 

This Option is hereby accepted on the terms and conditions set forth
herein and is expressly subject to all the provisions set forth in the La Quinta Corporation 2002 Stock Option and
Incentive Plan.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Grantee

  

 

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EXHIBIT 10.20    
  

 
 

LA QUINTA CORPORATION
  
    NON-QUALIFIED STOCK OPTION
  
    GRANTED PURSUANT TO THE LA QUINTA CORPORATION
  2002 STOCK OPTION AND INCENTIVE PLAN    
  

        For good and valuable consideration, receipt of which is hereby acknowledged, LA QUINTA CORPORATION (the
"Company") does hereby grant to the individual named on the last page of this document (the "Grantee") an option to purchase the number of shares of common stock of the Company and an equal number of
shares of Class B common stock of La Quinta Properties, Inc. ("Paired Shares") set forth on the last page of this document (the "Option") pursuant to the Company's 2002 Stock Option and
Incentive Plan (hereinafter called the "Plan"). This Option is a Non-qualified Stock Option (as defined in the Plan) with respect to the common stock of the Company and Class B
common stock of La Quinta Properties, Inc. Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein. 

        The
price at which the Paired Shares may be purchased pursuant to this Option (the "Exercise Price") is set forth on the last page of this document and is subject to adjustment as
provided in the Plan. 

        This
Option is subject to all of the provisions of the Plan and is subject to the following additional terms and conditions. 

        1.    This
Option may be exercised at any time through the tenth anniversary of the date hereof. The period during which this Option may be exercised is hereinafter referred to
as the "Exercise Period." 

        2.    If
the Grantee ceases to be an eligible participant under the Plan by reason of the Grantee's death during the Exercise Period, this Option shall be exercisable by the
Grantee's Beneficiary during the Exercise Period. 

        3.    This
Option shall not be exercisable unless either (a) a registration statement under the Securities Act of 1933, as amended, with respect to the Paired Shares to
be issued on the exercise of the Option shall have become, and continues to be, effective, or (b) the Grantee (i) shall have represented, warranted and agreed, in form and substance
satisfactory to the Company, at the time of exercising the Option that he or she is acquiring the Paired Shares for his or her own account, for investment and not with a view to or in connection with
any distribution, (ii) shall have agreed to restrictions on transfer in form and substance satisfactory to the Company and (iii) shall have agreed to an endorsement which makes
appropriate reference to such representations, warranties, agreements and restrictions on the certificate(s) representing the Paired Shares to be issued upon exercise of the Option. 

        PAIRED
SHARES ISSUED UPON EXERCISE OF THE OPTION WILL BE SUBJECT TO ALL RESTRICTIONS ON TRANSFER IMPOSED BY THE COMPANY'S CERTIFICATE OF INCORPORATION OR BY-LAWS OR BY
APPLICABLE STATE OR FEDERAL SECURITIES LAWS. 

        4.    This
Option may be exercised in accordance with its terms by the giving of written notice, in person or by registered mail, to the Company, marked "Attention: Secretary
of La Quinta Corporation," at the principal place of business of La Quinta Corporation, 909 Hidden Ridge, Suite 600, Irving, TX 75038, of the election to purchase Paired Shares pursuant hereto
accompanied by the full payment for all Paired Shares being so purchased. Payment of the purchase price may be made in one or a combination of the following methods: (i) in cash or by
electronic funds transfer; (ii) by check payable to the order of the Company; (iii) through the delivery (or attestation to ownership) of Paired Shares that have been purchased by
Grantee on the open market or that have been held by Grantee 

 

for at least six months and are not subject to restrictions under any plan of the Company; or (iv) by notice and third party payment in such manner as may be authorized by the Committee. In
the event the Grantee chooses to pay the purchase price by previously-owned Paired Shares through the attestation method, the number of Paired Shares issued to the Grantee upon the exercise of the
Option shall be net of the Paired Shares attested to. 

        THIS
OPTION IS NOT TRANSFERABLE OTHERWISE THAN BY WILL OR THE LAWS OF DESCENT AND DISTRIBUTION OR PURSUANT TO A QUALIFIED DOMESTIC RELATIONS ORDER AND, DURING THE EXERCISE PERIOD, IS
EXERCISABLE DURING THE LIFETIME OF THE GRANTEE ONLY BY HIM OR HER OR THE PERSONAL REPRESENTATIVE OF HIM OR HER. 

 Name of Grantee:  

 Number of Paired Shares subject to this Option:  

 Exercise Price per Paired Share: $  

 Effective Date:  

 Expiration Date of Exercise Period:  

	 	 	LA QUINTA CORPORATION
	

 	
 	

By:	
 	

 Francis W. Cash

Its Chief Executive Officer and President

        This
Option is hereby accepted on the terms and conditions set forth herein and is expressly subject to all the provisions set forth in the La Quinta Corporation
2002 Stock Option and Incentive Plan. 

	

 	
 	

 	
 	

 Grantee

2

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EXHIBIT 10.20

LA QUINTA CORPORATION NON-QUALIFIED STOCK OPTION GRANTED PURSUANT TO THE LA QUINTA CORPORATION 2002 STOCK OPTION AND INCENTIVE PLAN

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