Document:

Exhibit
10.41

[FIVE
YEAR INSTALLMENT VESTING]

HEALTH CARE PROPERTY INVESTORS, INC.

2006 PERFORMANCE INCENTIVE PLAN

PERFORMANCE
RESTRICTED STOCK UNIT AGREEMENT

[                             ],
Grantee:

As of the [            ]
day of [                      
20      ] (the “Grant
Date”), Health Care Property Investors, Inc., a Maryland corporation (the “Company”),
pursuant to the Health Care Property Investors, Inc. 2006 Performance 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 7.1 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 2007
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 during the Performance Period, any Units not forfeited
pursuant to subsection (a) shall fully vest as of the date of the Committee
Determination.

 1
 

(c)           Change in Control Event 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 Event 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 Event, 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 Event.

(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 Event 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 Event Following
the Performance Period.

(a)           In the event of a Change in Control
Event 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 Event;
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 Event,
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 Event.

 3
 

(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 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.

 5
 

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.  Subject to Section 8.1 of the Plan and such
rules and procedures as the Committee may impose, upon any distribution of
shares of Common Stock in respect of your Units, the Company shall
automatically reduce the number of shares to be delivered by (or otherwise
reacquire) the appropriate number of whole shares, valued at their then fair market value (with the “fair market
value” of such shares determined in accordance with the applicable provisions
of the Plan), to satisfy any withholding obligations of the Company or
its Subsidiaries with respect to such distribution of shares at the minimum
applicable withholding rates; provided, however, that the foregoing provision
shall not apply in the event that you have made other provision in advance of
the date of such distribution for the satisfaction of such withholding
obligations.  In the event that the
Company cannot legally satisfy such withholding obligations by such reduction
of shares, or in the event of a cash payment or any other withholding event in
respect of your Units, the Company (or a Subsidiary) shall be entitled to
require a cash payment by you or on your behalf and/or to deduct from other
compensation payable to you any sums required by federal, state or local tax
law to be withheld with respect to such distribution or payment.

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.

 6
 

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.

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 Maryland, 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

[FIVE
YEAR INSTALLMENT VESTING]

EXHIBIT B

HEALTH
CARE PROPERTY INVESTORS, INC.

2006 PERFORMANCE 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 [                 ,
20    ] under the Health Care Property Investors, Inc. 2006
Performance 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, 2011),

·                                          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, 2011, 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 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
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
10.42

[CEO FIVE
YEAR INSTALLMENT VESTING]

HEALTH CARE PROPERTY INVESTORS, INC.

2006 PERFORMANCE INCENTIVE PLAN

PERFORMANCE
RESTRICTED STOCK UNIT AGREEMENT

James F. Flaherty III[                            ],
Grantee:

As of the [            ]
day of [              
20    ] (the “Grant
Date”), Health Care Property Investors, Inc., a Maryland corporation (the “Company”),
pursuant to the Health Care Property Investors, Inc. 2006 Performance 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 7.1 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 2007
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.  

 3
 

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.

(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.  Subject to Section 8.1 of the Plan and such
rules and procedures as the Committee may impose, upon any distribution of
shares of Common Stock in respect of your Units, the Company shall
automatically reduce the number of shares to be delivered by (or otherwise
reacquire) the appropriate number of whole shares, valued at their then fair market value (with the “fair market
value” of such shares determined in accordance with the applicable provisions
of the Plan), to satisfy any withholding obligations of the Company or
its Subsidiaries with respect to such distribution of shares at the minimum
applicable withholding rates; provided, however, that the foregoing provision
shall not apply in the event that you have made other provision in advance of
the date of such distribution for the satisfaction of such withholding
obligations.  In the event that the
Company cannot legally satisfy such withholding obligations by such reduction
of shares, or in the event of a cash payment or any other withholding event in
respect of your Units, the Company (or a Subsidiary) shall be entitled to
require a cash payment by you or on your behalf and/or to deduct from other
compensation payable to you any sums required by federal, state or local tax
law to be withheld with respect to such distribution or payment.

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.

 5
 

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.

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 Maryland, 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: James F.
  Flaherty III

  
						

 

 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

[CEO FIVE
YEAR INSTALLMENT VESTING]

EXHIBIT B

HEALTH
CARE PROPERTY INVESTORS, INC.

2006 PERFORMANCE INCENTIVE PLAN

RESTRICTED
STOCK UNITS

DISTRIBUTION ELECTION AND BENEFICIARY DESIGNATION FORM

	
  Name: James F. Flaherty III

  	
  Social Security No.:                                

  

 

In connection with your award of Performance
Restricted Stock Units on [                ,
20    ] under the Health Care Property Investors, Inc. 2006
Performance 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, 2011),

·                                          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, 2011, 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 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 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: James F. Flaherty III

  	
   

  	
  Date Signed

  

 

 B-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]