Document:

EXHIBIT
10.17

 

FORM OF RESTRICTED PAIRED
SHARE AWARD AGREEMENT

 

UNDER THE LA QUINTA
CORPORATION

2002 STOCK OPTION AND
INCENTIVE PLAN

 

	
  Name of Grantee:

  	
   

  	
   

  
	
  No. of Paired Shares:

  	
   

  	
   

  
	
  Purchase Price per Restricted Paired Share:

  	
   

  	
   

  
	
  [minimum of “par
  value”]

  	
   

  
	
  Grant Date:

  	
   

  	
   

  
	
  Final Acceptance Date:

  	
   

  	
   

  
												

 

Pursuant to the La Quinta Corporation 2002 Stock
Option and Incentive Plan (the “Plan”) as amended through the date hereof, La
Quinta Corporation (the “Company”) hereby grants a Restricted Paired Share
Award (an “Award”) to the Grantee named above. 
Upon acceptance of this Award, the Grantee shall receive the number of
shares of common stock of the Company, par value $0.01 per share, and shares of
Class B common stock of La Quinta Properties, Inc., par value $0.01 per share,
which are paired and traded as one unit (“Paired Shares”) specified above,
subject to the restrictions and conditions set forth herein and in the Plan
(the “Restricted Paired Shares”).

 

1.             Acceptance
of Award.  The Grantee shall have no
rights with respect to this Award unless he or she shall have accepted this
Award prior to the close of business on the Final Acceptance Date specified
above by (i) making payment to the Company by certified or bank check or
other instrument acceptable to the Administrator (as defined in Section 2
of the Plan) of the Purchase Price per Restricted Paired Share, if any, times
the number of Restricted Paired Shares to be accepted, and (ii) signing
and delivering to the Company a copy of this Award Agreement.  Upon acceptance of this Award by the
Grantee, certificates evidencing the Restricted Paired Shares so accepted shall
be issued and held by the Company in escrow, and the Grantee’s name shall be
entered as the shareholder of record on the books of the Company.  Thereupon, the Grantee shall have all the
rights of a shareholder with respect to such Paired Shares, including voting
and dividend rights, subject, however, to the restrictions and conditions
specified in Paragraph 2 below.

 

2.             Restrictions
and Conditions.

 

(a)           Certificates
evidencing the Restricted Paired Shares granted herein shall bear an
appropriate legend, as determined by the Administrator in its sole discretion,
to the effect that such Restricted Paired Shares are subject to restrictions as
set forth herein and in the Plan.

 

(b)           Restricted
Paired Shares granted herein may not be sold, assigned, transferred, pledged or
otherwise encumbered or disposed of by the Grantee prior to vesting.

 

(c)           If
the Grantee’s employment with the Company and its Subsidiaries is voluntarily
or involuntarily terminated for any reason (including death) prior to vesting
of Restricted Paired Shares granted herein, the Company shall have the right,
at the discretion of the 

 

 

Administrator, to repurchase such Restricted Paired Shares from the
Grantee or the Grantee’s legal representative at their purchase price.  The Company must exercise such right of
repurchase or forfeiture by written notice to the Grantee or the Grantee’s
legal representative not later than 90 days following such termination of
employment.

 

(d)           Restricted
Paired Shares received pursuant to this Award will be subject to all
restrictions on transfers imposed by the Company’s and La Quinta Properties,
Inc.’s Certificates of Incorporation and By-Laws or by applicable state or
federal securities laws.

 

3.             Vesting of Restricted Paired Shares.  The restrictions and conditions in
Paragraph 2 of this Agreement shall lapse on ________________ (the
“Vesting Date”).  Subsequent to such
Vesting Date, the Paired Shares on which all restrictions and conditions have
lapsed shall no longer be deemed Restricted Paired Shares.

 

4.             Dividends.  Dividends on Restricted Paired Shares shall
be paid currently to the Grantee.

 

5.             Incorporation
of Plan.  Notwithstanding anything
herein to the contrary, this Agreement shall be subject to and governed by all
the terms and conditions of the Plan. 
Capitalized terms in this Agreement shall have the meaning specified in
the Plan, unless a different meaning is specified herein.

 

6.             Transferability.  This Agreement is personal to the Grantee,
is non-assignable and is not transferable in any manner, by operation of law or
otherwise, other than by will or the laws of descent and distribution.

 

7.             Tax
Withholding.  The Grantee shall, not
later than the date as of which the receipt of this Award 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 Grantee may elect to have the required
minimum tax withholding obligation satisfied, in whole or in part, by (i)
authorizing the Company to withhold from the Restricted Paired Shares to be
issued pursuant to this Agreement a number of Restricted Paired Shares with an
aggregate Fair Market Value (as of the date the withholding is effected) that
would satisfy the withholding amount due, or (ii) transferring to the Company,
a number of Paired Shares with an aggregate Fair Market Value (as of the date
the withholding is effected) that would satisfy the withholding amount
due.  In the event the Grantee shall
elect, in accordance with Section 83(b) of the Code, to recognize ordinary income
in the year of grant of the Restricted Paired Shares, the Grantee agrees to pay
to the Company all withholding taxes determined to be due with respect to such
election, based on the excess of the Fair Market Value of the Restricted Paired
Shares on the date of grant over the purchase price for the Restricted Paired
Shares.  The Grantee acknowledges and
agrees that the Company has the right to deduct from payment of any kind due to
the Grantee, or from Restricted Paired Shares to be issued pursuant to this
Award, taxes required by law to be withheld with respect to the issuance of
Restricted Paired Shares to the Grantee.

 

2

 

8.             Miscellaneous.

 

(a)           Notice
hereunder shall be given to the Company at its principal place of business, and
shall be given to the Grantee at the address set forth below, or in either case
at such other address as one party may subsequently furnish to the other party
in writing.

 

(b)           This
Agreement does not confer upon the Grantee any rights with respect to
continuation of employment by the Company or any Subsidiary.

 

	
   

  	
  LA QUINTA CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

The foregoing Agreement is hereby accepted and the terms and conditions
thereof hereby agreed to by the undersigned.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  Grantee’s Signature

  
	
   

  	
   

  
	
   

  	
  Grantee’s name and address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

3EXHIBIT 10.18

 

LA QUINTA
CORPORATION

 

FORM OF INCENTIVE
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 an Incentive 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; and (c) commencing on 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 intended to qualify
as an “incentive stock option” under Section 422 of the Internal Revenue Code
of 1986, as amended (the “Code”), but the Company does not represent or warrant
that this Option qualifies as such.  The
Grantee should consult with his or her own tax advisors regarding the tax
effects of this Option and the requirements necessary to obtain favorable
income tax treatment under Section 422 of the Code, including, but not limited
to, holding period requirements.  If the
Grantee intends to dispose or does dispose (whether by sale, gift, transfer or
otherwise) of any Paired Shares issued upon exercise of this Option within the
one-year period beginning on the date after the transfer of such shares to him
or her, or within the two-year period beginning on the day after the grant of
this Option, he or she will notify the Company within 30 days after such
disposition.

 

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 

 

3

 

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 would 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.

 

	
  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

  

 

4

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