Document:

EXHIBIT
10.2

SECOND AMENDMENT TO THE 2007 AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

This Second Amendment to the 2007 Employment Agreement
(the “Agreement”), is made as of July 1, 2007, effective as of March 1, 2007 by
and between LTC PROPERTIES, INC.,
a corporation organized under the laws of the State of Maryland (“LTC” or the “Company”),
and WENDY SIMPSON (“Executive”) and amends and restates the 2007
Amended and Restated Employment Agreement between LTC and Executive, dated as
of February 6, 2007 (“Prior Employment Agreement”).

NOW, THEREFORE,
for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto agree as follows:

1.             Effective Date, Appointment, Title and Duties. 
The effective date of this Agreement is March 1, 2007 (“Effective Date”).  As of the Effective Date, LTC employs
Executive to serve as its Chief Executive Officer.  In such capacity, Executive shall report to
the Board of Directors of the Company, and shall have such duties, powers and
responsibilities as are customarily assigned to a Chief Executive Officer of a
publicly held corporation, but shall also be responsible to the Board of
Directors and to any committee thereof. 
In addition, Executive shall have such other duties and responsibilities
as the Board of Directors may reasonably assign her, with her consent,
including serving with the consent or at the request of the Board of Directors
as an officer or on the board of directors of affiliated corporations, provided that such duties are commensurate with and
customary for a senior executive officer bearing Executive’s experience,
qualifications, title and position.

2.             Term of Agreement.  The term of
this Agreement shall commence as of the Effective Date and shall extend such
that at each and every moment of time hereafter the remaining term shall be
three years.

3.             Acceptance of Position.  Executive
accepts the position of Chief Executive Officer, and agrees that during the
term of this Agreement she will faithfully perform her duties and, except as
expressly approved by the Board of Directors of LTC, will devote substantially
all of her business time to the business and affairs of LTC, and will not
engage, for her own account or for the account of any other person or entity,
in a business which competes with LTC. 
It is acknowledged and agreed that Executive may serve as an officer
and/or director of companies in which LTC owns voting or non-voting stock.  In addition, it is acknowledged and agreed
that Executive may, from time to time, serve as a member of the board of
directors of other companies, in which event the Board of Directors of LTC must
expressly approve such service pursuant to a Board resolution maintained in the
Company’s minute books.  Any compensation
or remuneration which Executive receives in consideration of her service on the
board of directors of other companies shall be the sole and exclusive property
of Executive, and LTC shall have no right or entitlement at any time to any
such compensation or remuneration.

4.             Salary and Benefits.  During the
term of this Agreement:

(a)           LTC shall pay to Executive a base salary at an annual
rate of not less than Four Hundred Thousand Dollars ($400,000) per annum (“Base
Salary”), paid in approximately equal installments at intervals based on any
reasonable Company policy.  LTC agrees
from time to time to consider increases in such base salary in the discretion
of the Board of Directors.  Any increase,
once granted, shall automatically amend this Agreement to provide that
thereafter Executive’s base salary shall not be less than the annual amount to
which such base salary has been increased.

(b)           During the term hereof, Executive shall participate in
all health, retirement, Company-paid insurance, sick leave, disability,
expense reimbursement and other benefit programs which LTC makes available to
any of its senior executives.

(c)           Health Insurance Benefits. LTC shall provide to  Executive and her spouse  LTC health insurance benefits, of a type and
nature no less favorable to Executive than the health insurance benefits made
available by LTC to Executive and to LTC’s other senior executives at the time
of execution of this Agreement, for so long as Executive is employed hereunder.  The benefits described in the preceding
sentence shall be referred to herein as Executive’s “Health Insurance Benefits”
and upon a Change in Control of the Company, a termination of Executive’s
employment by LTC without “cause” or a resignation by Executive with “good
reason”, these Health Insurance Benefits will continue for Executive’s lifetime.

(i)            In the event LTC ceases to offer health insurance
coverage to its senior executives or LTC elects in its sole discretion to
discontinue providing Executive with Executive’s Health Insurance Benefits, LTC
shall have the option (a) at the Company’s expense, to purchase health
insurance coverage no less favorable to Executive than Executive’s Health
Insurance Benefits, or (b) terminate all further Health Insurance Benefits to
Executive and in lieu thereof make a one time payment of Two Hundred Fifty
Thousand Dollars ($250,000) to Executive (a “Health Insurance Buyout”).

(ii)           In order to effect a Health Insurance Buyout, LTC
shall give no less than sixty (60) days’ prior written notice to Executive that
LTC has elected to terminate Executive’s Health Insurance Benefits.  Such notice shall not be effective nor shall
it relieve LTC of its obligations under this Section 4(c) unless it is
accompanied by payment in full of the aforesaid Two Hundred Fifty Thousand
Dollars ($250,000).

(iii)          Executive’s rights to the benefits set forth in this
Section 4(c) and the subsections of this Section 4(c) shall survive any
termination or expiration of this Agreement and the termination of Executive’s
employment upon a Change in Control of the Company, a termination of Executive’s
employment by LTC without “cause” or a resignation by Executive with “good
reason”.

(d)           The Company has set an annual target bonus for
Executive equal to one hundred percent (100%) of her Base Salary; provided, however, that the award of any such bonus is
subject to the sole discretion of the Board of Directors.  Executive also shall be eligible to
participate in any LTC incentive stock, option or bonus plan offered by LTC to
its senior executives, subject to the terms thereof and at the sole discretion
of the Board of Directors.

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(e)           At the date hereof:

(i)              Executive has previously been awarded twenty-seven
thousand one hundred twenty (27,120) shares of the Company’s common stock (“Prior
RSA’s”).  Twenty-two thousand five
hundred (22,500) of the Prior RSA’s were awarded under the LTC Properties, Inc.
2004 Restricted Stock Plan (“2004 RSP”) and four thousand six hundred twenty
(4,620) of the Prior RSA’s were awarded under the LTC Properties, Inc., 1998
Equity Participation Plan (“1998 EPP”) and the applicable LTC Property, Inc.
Restrictive Stock Agreements or 1998 EPP Award Agreements, as the case may be
(together the “Award Agreements”).  The
Award Agreements are hereby modified and amended to provide that (A) no prior
existing schedule for the lapsing of restriction on the shares awarded
thereunder shall have any further force and effect, and (B) all restrictions
imposed by the Company with respect to the Prior RSA’s shall lapse in the
annual amount of 9,040 shares each March 1, 2008, 2009 and 2010, respectively.

(ii)             Simultaneously with the execution of this Agreement,
the Company and Executive shall execute a 2007 Restricted Stock Agreement in
the form of Exhibit A hereto pursuant to which the Company shall grant Executive
a Restricted Stock Award of forty thousand (40,000) shares of restricted common
stock of the Company under the 1998 EPP (the “2007 RSA”).  Restrictions imposed by the Company on the
2007 RSA shares shall lapse in the amounts of 13,333 shares on March 1, 2008,
13,333 on March 1, 2009 and 13,334 on March 1, 2010.

(f)            Executive shall be entitled to reasonable vacation
time, not less than four (4) weeks per year, provided
that not more than two (2) weeks of such vacation time may be taken
consecutively without prior notice to and non-objection by the
Compensation Committee of the Board of Directors or, if there is no
Compensation Committee, the Board of Directors.

5.             Certain Terms Defined.  For purposes
of this Agreement:

(a)           Executive shall be deemed to be “disabled” if a
physical or mental condition shall occur and persist which, in the written
opinion of a licensed physician selected by the Board of Directors in good
faith, has rendered Executive unable to perform the duties set forth in Section
1 hereof for a period of sixty (60) days or more and, in the written opinion of
such physician, the condition will continue for an indefinite period of time,
rendering Executive unable to return to her duties.

(b)           A termination of Executive’s employment by LTC shall
be deemed for “Cause” if, and only if, it is based upon (i) conviction of
a felony; (ii) material disloyalty to the Company such as embezzlement,
misappropriation of corporate assets or, except as permitted pursuant to
Section 3 of this Agreement, breach of Executive’s agreement not to engage in
business for another enterprise of the type engaged in by the Company; or
(iii) the engaging in unethical or illegal behavior which is of a public
nature, brings LTC into disrepute, and result in material damage to the
Company.  The Company shall have the
right to suspend Executive with pay, for a reasonable period to investigate
allegations of conduct which, if proven, would establish a right to terminate
this Agreement for Cause, or to permit a felony charge to be tried.  Immediately upon the conclusion of such
temporary period, unless Cause to terminate this Agreement has been
established, Executive shall be restored to all duties and responsibilities as
if such suspension had never occurred.

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(c)           A resignation by Executive shall not be deemed to be
voluntary and shall be deemed to be a resignation with “Good Reason” if it is
based upon (i) a diminution in Executive’s title, duties, or salary;
(ii) a material reduction in benefits; (iii) a direction by the Board
of Directors that Executive report to any person or group other than the Board
of Directors, or (iv) a geographic relocation of Executive’s place of work
a distance for more than seventy-five (75) miles from LTC’s offices located
at  31365 Oak Crest Drive, Suite 200,
Westlake Village, California 91361.

(d)           “Affiliate” means with respect to any Person, a Person
who, directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control, with the Person specified.

(e)           “Base Salary” means, as of any date of termination of
employment, the highest base salary of Executive in the then current fiscal
year or in any of the last four fiscal years immediately preceding such date of
termination of employment.

(f)            “Beneficial Owner” shall have the meaning given to
such term in Rule 13d-3 under the Exchange Act.

(g)           A “Change in Control” occurs if:

(i)           Any Person or related group of Persons (other than
Executive and her Related Persons, the Company or a Person that directly or
indirectly controls, is controlled by, or is under common control with, the
Company) is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing 30% or more of the combined voting power
of the Company’s then outstanding securities;

(ii)           The stockholders of the Company approve a merger or
consolidation of the Company with any other corporation (or other entity),
other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than 66-2/3% of the combined voting
power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation; provided, however, that a merger or
consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no Person acquires 30% or more of the combined
voting power of the Company’s then outstanding securities shall not constitute
a Change in Control;

(iii)          The Stockholders of the Company approve a plan of
complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company’s assets; or

(iv)          A majority of the members of the Board of Directors of
the Company cease to be Continuing Directors;

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(h)           “Code” means the Internal Revenue Code of 1986, as
amended.

(i)      “Continuing Directors” means, as of any
date of determination, any member of the Board of Directors who (i) was a
member of such Board of Directors on the date of the Agreement or (ii) was
nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election.

(j)      “Exchange Act” means the Exchange Act of 1934, as
amended.

(k)           “Person” means any individual, corporation,
partnership, limited liability company, trust, association or other entity.

(l)      “Related Person” means any immediate family member
(spouse, partner, parent, sibling or child whether by birth or adoption) of the
Executive and any trust, estate or foundation, the beneficiary of which is the
Executive and/or an immediate family member of the Executive.

6.             Certain Benefits Upon Termination. 
Executive’s employment shall be terminated upon the earlier of
(i) the voluntary resignation of Executive with or without Good Reason;
(ii) Executive’s death or permanent disability; or (iii) upon the
termination of Executive’s employment by LTC for any reason at any time.  In the event of such termination, the below
provisions of this Section 6 shall apply, and in the event of a Change of
Control, whether or not Executive’s employment is terminated thereby, Section
6(b) shall apply.

(a)   If Executive’s employment by LTC
terminates for any reason other than as a result of (i) a termination for
Cause, or (ii) a voluntary resignation by Executive without a Good Reason, or (iii)
a Change in Control of the Company, then LTC shall pay Executive a lump sum
severance payment equal to two times her Base Salary, provided that if employment terminates by
reason of Executive’s death or disability, then such salary shall be paid only
to the extent the Company has available “key man” life, disability or similar
insurance relating to the death or disability of Executive.

(b)  Upon a Change in Control of the Company
whether or not Executive’s employment is terminated thereby, in lieu of the
severance payment described in Section 6(a) above, LTC shall pay Executive a
one time severance payment in cash equal to Three Million Dollars ($3,000,000),
and all stock options shall automatically become exercisable.  All restrictions on stock awarded to
Executive, other than the Prior RSA’s and the 2007 RSA shares pursuant to
Section 4(e) hereof, shall automatically lapse concurrently upon a Change in
Control, notwithstanding any prior existing schedule; provided,
however, that no Change of Control or payment of the aforesaid
severance payment shall (i) terminate or reduce Executive’s Health Care
Benefits as set forth in Section 4(c) hereof which shall remain in full force
and effect, and (ii) if Executive’s employment is not terminated in connection
with such Change of Control, restrictions on the Prior RSA’s and the 2007 RSA
shares awarded under Section 4(e) hereof shall remain in full force and effect
and shall not lapse until Executive’s employment is terminated as provided in
such Section 4(e).

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(c)             COBRA.  If Executive’s
employment by LTC terminates for any reason, except for LTC’s termination of
Executive’s employment for Cause or a voluntary resignation by Executive
without a Good Reason, LTC shall offer to Executive the opportunity to
participate in all Company-provided medical and dental plans to the
extent Executive elects and remains eligible for coverage under COBRA and for a
maximum period of eighteen (18) months at Company expense to the extent the
benefits thereunder are not duplicative of the Executive’s Health Insurance
Benefits; provided, however, in
the event Executive’s employment by LTC terminated upon a Change in Control of
the Company, then Executive shall not be given the opportunity to participate
in any of such medical and dental plans, except to the extent required by law
and except as required in accordance with Executive’s Health Insurance
Benefits.  The provisions of this Section
6(c) are intended to specify Executive’s rights under COBRA and are not
intended to limit or reduce Executive’s Health Insurance Benefits.

(d)             In the event that Executive’s employment
terminates by reason of her death, all benefits provided in this Section 6
shall be paid to her estate or as her executor shall direct, but payment may be
deferred until Executive’s executor or personal representative has been
appointed and qualified pursuant to the laws in effect in Executive’s
jurisdiction of residence at the time of her death.

(e)             LTC shall make all payments pursuant to
the foregoing subsections (a) through (d) concurrently with the date of
termination of Executive’s employment or consummation of a Change in Control of
the Company, as applicable.

(f)              LTC shall have no liability under this
Section 6 if Executive’s employment pursuant to this Agreement is terminated by
LTC for Cause or by Executive without a Good Reason; provided,
however, that if Executive’s employment pursuant to this Agreement
is terminated by LTC for Cause or by Executive without a Good Reason at any
time after a Change of Control which did not result in Executive’s employment
being terminated, such post-Change of Control termination by LTC for
Cause or by Executive without a Good Reason shall not affect in any way
Executive’s entitlement to Executive’s Health Insurance Benefits or the Health
Insurance Buyout right under Section 4(c)under above, the one time severance
payment described in Section 6(b) above or any other rights, benefits or
entitlements to which Executive may be entitled as a result of such Change of
Control.

(g)             Gross-Up.

(i)           If it shall be determined that any payment,
distribution or benefit received or to be received by Executive from the
Company (whether payable pursuant to the terms of this Agreement or any other
plan, arrangements or agreement with the Company or a Affiliate (as defined
above) (“Payments”)) would be subject to the excise tax imposed by Section 4999
of the Code (the “Excise Tax”), then Executive shall be entitled to receive an
additional payment (the “Excise Tax Gross-Up Payment”) in an amount such that
the net amount retained by Executive, after the calculation and deduction of
any Excise Tax on the Payments and any federal, state and local income taxes
and excise tax on the Excise Tax Gross-Up Payment provided for in this
Section 6(g), shall be equal to the Payments. 
In determining this amount, the amount of the Excise Tax Gross-Up
Payment attributable to federal income taxes shall be reduced by the maximum
reduction in federal income taxes that could be obtained by the deduction of
the portion of the Excise Tax Gross-Up Payment attributable to state and local
income taxes.  Finally, the Excise Tax
Gross-Up Payment shall be reduced by income or excise tax withholding
payment made by the Company or any affiliate of either to any federal, state or
local taxing authority with respect to the Excise Tax Gross-Up Payment
that was not deducted from compensation payable to Executive.

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(ii)          All determinations required to be made under this
Section 6(g), including whether and when an Excise Tax Gross-Up Payment
is required and the amount of such Excise Tax Gross-Up Payment and the
assumptions to be utilized in arriving at such determination, except as
specified in Section 6(g)(i) above, shall be made by the Company’s independent
auditors (the “Accounting Firm”), which shall provide detailed supporting
calculations both to the Company and Executive. 
Such determination of tax liability made by the Accounting Firm shall be
subject to review by Executive’s tax advisor and, if Executive’s tax advisor
does not agree with such determination reached by the Accounting Firm, then the
Accounting Firm and Executive’s tax advisor shall jointly designate a
nationally recognized public accounting firm, which shall make such
determination.  All reasonable fees and
expenses of the accountants and tax advisors retained by either Executive or
the Company shall be borne by the Company. 
Any Excise Tax Gross-Up Payment, as determined pursuant to this
Section 6(g), shall be paid by the Company to Executive within five days after
the receipt of such determination.  Any
determination by a jointly designated public accounting firm shall be binding
upon the Company and Executive.

(iii)         As a result of the uncertainty in the application of
Subsection 4999 of the Code at the time of the initial determination
thereunder, it is possible that Excise Tax Gross-Up Payments will not
have been made by the Company that should have been made consistent with the
calculations required to be made hereunder (“Underpayment”).  In the event that Executive thereafter is
required to make a payment of any Excise Tax, any such Underpayment calculated
in accordance with and in the same manner as the Excise Tax Gross-Up
Payment in Section 6(g)(i) above shall be promptly paid by the Company to or
for the benefit of Executive.  In the
event that the Excise Tax Gross-Up Payment exceeds the amount
subsequently determined to be due, such excess shall constitute a loan from the
Company (together with interest at the rate provided in Section 1274(b)(2)(B)
of the Code).

7.             [Intentionally omitted]

8.             Indemnification.  LTC shall
indemnify Executive and hold her harmless from and against all claims, losses,
damages, expense or liabilities (including expenses of defense and settlement)
based upon or in any way arising from or connected with his employment by LTC,
to the maximum extent permitted by law. 
To the fullest extent permitted by law, LTC shall advance to Executive
all expenses necessary in connection with the defense of any action or claim
which is brought if indemnification cannot be determined to be available prior
to the conclusion of such action or the investigation of such claim.  LTC shall investigate in good faith the
availability and cost of directors’ and officers’ insurance and shall include
Executive as an insured in any directors’ and officers’ insurance policy it
maintains.  The provisions of this
Section 8 shall survive any termination or expiration of this Agreement.

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9.             Attorney Fees.  In the event
that any action or proceeding is brought to enforce the terms and provisions of
this Agreement, the prevailing party shall be entitled to recover reasonable
attorney fees.

10.           Notices.  All notices
and other communications provided to either party hereto under this Agreement
shall be in writing and delivered by certified or registered mail to such party
at its/her address set forth below its/her signature hereto, or at such other
address as may be designated with postage prepaid, shall be deemed given when
received.

11.           Construction.  In
constructing this Agreement, if any portion of this Agreement shall be found to
be invalid or unenforceable, the remaining terms and provisions of this
Agreement shall be given effect to the maximum extent permitted without
considering the void, invalid or unenforceable provisions.  In construing this Agreement, the singular
shall include the plural, the masculine shall include the feminine and neuter
genders as appropriate, and no meaning in effect shall be given to the captions
of the sections in this Agreement, which is inserted for convenience of
reference only.  Without limitation to
the foregoing, nothing in this Agreement is intended to violate the
Sarbanes-Oxley Act of 2002, and to the extent that any provision of this
Agreement would constitute such a violation, such provision shall be modified
to the extent required by such Act, or, to the extent that such provision
cannot be so modified and is found to be invalid or unenforceable, the
remaining terms and provisions shall be given effect to the maximum extent permitted
without considering the void, invalid or unenforceable provision.

Notwithstanding any other provision of the
Agreement, to the extent that (i) any amount paid pursuant to the Agreement is
treated as nonqualified deferred compensation pursuant to Section 409A of the
Internal Revenue Code of 1986 (the “Code”) and (ii) the Executive is a “specified
employee” pursuant to Section 409A(2)(B) of the Code, then such payments shall
be made on the date which is six (6) months after the date of the Executive’s
separation from service.  In connection with the payment of any
obligation that is delayed pursuant to this Rider, the Company shall establish
an irrevocable trust to hold funds to be used for payment of such
obligations.  Upon the date that such
amount would otherwise be payable, the Company shall deposit into such
irrevocable trust an amount equal to the obligation.  However, notwithstanding the establishment of
the irrevocable trust, the Company’s obligations under the Agreement upon the
Executive’s termination of employment shall constitute a general, unsecured
obligation of the Company and any amount payable to the Executive shall be paid
solely out of the Company’s general assets, and the Executive shall have no
right to any specific assets of the Company. 
The funds, if any, contained or contributed to the irrevocable trust
shall remain available for the claims of the Company’s general creditors.

12.           Headings.  The section
headings hereof have been inserted for convenience of reference only and shall
not be construed to affect the meaning, construction or effect of this
Agreement.

13.           Governing Law. 
The provisions of this Agreement shall be construed and interpreted in
accordance with the internal laws of the State of California as at the time in
effect.

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14.           Entire Agreement.  This
Agreement constitutes the entire agreement and supersedes all other prior
agreements (including the Prior Employment Agreement) and undertakings, both
written and oral, among Executive and the Company, with respect to the subject
matter hereof.

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IN WITNESS WHEREOF, this
Agreement shall be effective as of the date specified in the first paragraph of
this Agreement.

	
  Signed July 1, 2007

  	
   

  	
   

  
	
   

  	
   

  	
  LTC PROPERTIES, INC., a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Andre
  Dimitriadis

  
	
   

  	
   

  	
  Andre C.
  Dimitriadis, Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy
  Triche

  
	
   

  	
   

  	
  Compensation
  Committee Representative

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Executive:

  
	
   

  	
   

  	
  /s/ Wendy
  Simpson

  
	
   

  	
   

  	
  Wendy Simpson

  

 

 10EXHIBIT
10.3

SECOND AMENDMENT TO THE 2007
AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

This
Second Amendment to the 2007 Amended and Restated Employment Agreement (the “Agreement”)
is made as of July 1, 2007, effective as of March 1, 2007, by and between LTC PROPERTIES, INC., a corporation organized under the laws
of the State of Maryland (“LTC” or the “Company”), and ANDRE C.
DIMITRIADIS (“Executive”), and amends and restates the 2007 Amended
and Restated Employment Agreement dated February 6, 2007, by and between LTC
and Executive (the “Prior Employment Agreement”), as amended.

NOW, THEREFORE,
for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto agree as follows:

1.             Effective Date,
Appointment, Title and Duties.  The
effective date of this Agreement is March 1, 2007 (“Effective Date”).  LTC hereby accepts the resignation of
Executive from his position of Chief Executive Officer and hereby employs
Executive to serve as its Executive Chairman of the Board, subject to the terms
hereof.  In such capacity, Executive
shall report to the Board of Directors of the Company, and shall have such
duties, powers and responsibilities as are customarily assigned to the Executive
Chairman of the Board of a publicly-held corporation.  In addition, Executive shall have such other
duties and responsibilities as the Board of Directors may reasonably assign
him, with his consent, including serving with the consent or at the request of
the Company on the board of directors of affiliated corporations, provided that
such duties are commensurate with and customary for a senior executive officer
bearing Executive’s experience, qualifications, title and position.

2.             Term of Agreement.  The initial term of this Agreement shall be
for a four (4) year period, commencing on the Effective Date and ending
February 28, 2011.  Unless the employment
hereunder shall have been terminated in accordance with the provisions hereof,
the term of this Agreement shall be extended beyond February 28, 2011 such that
at each and every moment of time hereafter the remaining term shall not be less
than four (4) years.  For purposes of
this Agreement, a resignation by Executive which is for “Good Reason,” as
described in Section 5 below shall not constitute a termination of this
Agreement.

3.             Acceptance of
Position.  Executive accepts the
position of Executive Chairman of the Board of LTC, and agrees that during the
term of this Agreement he will faithfully perform his duties.  Executive will devote approximately two full
business days per week to the business and affairs of LTC.  During the term of his employment by LTC,
Executive will not engage, for his own account or for the account of any other
person or entity, in a business which competes with LTC.  It is acknowledged and agreed that Executive
may serve as an officer and/or director of companies in which LTC owns voting
or non-voting stock.  In addition, it is
acknowledged and agreed that Executive may, from time to time, serve as a
member of the board of directors of other companies without the consent of LTC,
provided that Executive will disclose such other board memberships to the LTC
board of directors.  Any compensation or
remuneration which Executive receives in consideration of his service on the
board of directors of other companies or for other non-competitive activities
outside of his service hereunder shall be the sole and exclusive property of
Executive, and LTC shall have no right or entitlement at any time to any such
compensation or remuneration.

4.             Salary and
Benefits.  During the term of this
Agreement:

(a)           LTC
shall pay to Executive a base salary at an annual rate of not less than Two
Hundred Forty Thousand Dollars ($240,000) per annum, paid in approximately
equal installments at intervals based on any reasonable Company policy.  LTC agrees from time to time to consider
increases in such base salary in the discretion of the Board of Directors.  Any increase, once granted, shall
automatically amend this Agreement to provide that thereafter Executive’s base
salary shall not be less than the annual amount to which base salary has been
increased.

(b)           During the term hereof,
Executive shall participate in all health, retirement, Company-paid insurance,
sick leave, disability, expense reimbursement and other benefit programs which
LTC makes available to any of its senior executives from time to time.

(c)           Health Insurance
Benefits.  LTC shall provide to
Executive and his two daughters LTC health insurance benefits, of a type and
nature no less favorable to Executive than the health insurance benefits made
available by LTC to Executive and to LTC’s other senior executives at the time
of the execution of this Agreement, for so long as Executive is employed
hereunder and for the lifetime of the Executive, provided
that the Company may terminate such health insurance for Executive’s two
daughters at such time as they attain the 
age of twenty-two (22) years.  The
benefits described in the preceding sentence shall be referred to herein as
Executive’s “Health Insurance Benefits”.

(i)            In the event LTC ceases to offer health
insurance coverage to its senior executives or LTC elects in its sole
discretion to discontinue providing Executive with Executive’s Health Insurance
Benefits, LTC shall have the option (a) at the Company’s expense, to purchase
health insurance coverage no less favorable to Executive than Executive’s
Health Insurance Benefits, or (b) terminate all further Health Insurance
Benefits to Executive and in lieu thereof make a one time payment of Two
Hundred Fifty Thousand Dollars ($250,000) to Executive (a “Health Insurance
Buyout”).

(ii)         In order to effect a Health Insurance
Buyout,  LTC shall give no less than
sixty (60) days’ prior written notice to Executive that LTC has elected to
terminate Executive’s Health Insurance Benefits.  Such notice shall not be effective nor shall
it relieve LTC of its obligations under this Section 4(c) unless it is
accompanied by payment in full of the aforesaid Two Hundred Fifty Thousand
Dollars ($250,000).

 2
 

(iii)          Executive’s rights to the benefits set forth
in this Section 4(c) and the subsections of this Section 4(c) shall vest in
equal installments over 10 months (i.e., March 31, 2007 through December 31,
2007) and such vested Health Insurance Benefits shall survive any termination
or expiration of this Agreement and the termination of Executive’s employment,
regardless of whether such termination is by the Executive or by the Company
and regardless of whether such termination is for any or no reason or with or
without Good Reason or Cause.

(d)           Executive shall be
eligible to participate in any LTC incentive stock option or bonus plan offered
by LTC to its senior Executives, subject to the terms thereof and the
discretion of the Board of Directors.

(e)           Executive shall be
entitled to reasonable vacation time, not less than four (4) weeks per year, provided that not more than two (2) weeks of such vacation
time may be taken consecutively without prior notice to and non-objection by
the Compensation Committee of the Board of Directors or, if there is no
Compensation Committee, the Board of Directors.

(f)            The Company and
Executive are parties to Restricted Stock Agreements dated March 12, 1999 and
December 7, 2005 between the Company and Executive (the “RS Agreements).  As set forth in the RS Agreements, Executive
has previously been awarded certain restricted stock awards (the “Prior RSA’s”)
under the LTC Properties, Inc. 1998 Equity Participation Plan and the LTC
Properties, Inc. 2004 Restricted Stock Plan. 
As of the execution of this Agreement, an aggregate of fifty-four
thousand nine hundred sixty (54,960) shares of the Prior RSA’s  remain subject to certain restrictions, which
restrictions lapse, among other things, with the passage of time.  The RS Agreements are hereby deemed modified
and amended as of the Effective Date to provide that (i) no prior existing
schedule for the lapsing of such restrictions shall have any further force and
effect, and (ii) all restrictions applicable to such shares shall lapse on 5,496
shares each on the last day of each month beginning March 31, 2007 and ending
December 31, 2007.

5.             Certain Terms
Defined.  For purposes of this
Agreement:

(a)           Executive shall be
deemed to be “disabled” if a physical or mental condition shall occur and
persist which, in the written opinion of a licensed physician selected by the
Board of Directors in good faith, has rendered Executive unable to perform the
duties of Executive Chairman of the Board of LTC for a period of sixty (60)
days or more and, in the written opinion of such physician, the condition will
continue for an indefinite period of time, rendering Executive unable to return
to his duties.

(b)           A termination of
Executive’s employment by LTC shall be deemed for “Cause” if, and only if, it
is based upon (i) conviction of a felony; (ii) material disloyalty to the
Company such as embezzlement, misappropriation of corporate assets or, except
as provided in Section 3 of this Agreement, breach of Executive’s agreement not
to engage in business for another enterprise of the type engaged in by the
Company; or (iii) the engaging in unethical or illegal behavior which is of a
public nature, brings LTC into disrepute, and results in material damage to the
Company.  The Company shall have the
right to suspend Executive, with pay, for a reasonable period to investigate
allegations of conduct which, if proven, would establish a right to terminate
this Agreement for Cause, or to permit a felony charge to be tried.  Immediately upon the conclusion of such
temporary period, unless Cause to terminate this Agreement has been
established, Executive shall be restored to all duties and responsibilities as
if such suspension had never occurred.

 3
 

(c)           A resignation by
Executive shall not be deemed to be voluntary and shall be deemed to be a
resignation with “Good Reason” if it is based upon (i) a diminution in
Executive’s title (except as permitted in Section 6(d) of this Agreement),
duties, or salary; (ii) a material reduction in benefits; (iii) a direction by
the Board of Directors that Executive report to any person or group other than
the Board of Directors, or (iv) a geographic relocation of Executive’s place of
work a distance of more than fifty (50) miles from LTC’s offices located 31365
Oak Crest Drive, Suite 200, Westlake Village, CA  91361. 
Executive’s statement that a resignation was based upon one of the
events stated in this section shall be conclusive and binding for purposes of
this Agreement if the resignation occurs within twelve (12) months following
the event.

(d)           “Affiliate” means the
Company’s successors, any Person whose actions result in a Change in Control or
any corporation affiliated (or which, as a result of the completion of the
transactions causing a Change in Control shall become affiliated) with the
Company within the meaning of Section 1504 of the Code.

(e)           “Base Salary” means, as
of any date of termination of employment, the highest base salary of Executive
in the then current fiscal year or otherwise in effect at any time subsequent
to the Effective Date.

(f)            “Beneficial Owner”
shall have the meaning given to such term in Rule 13d-3 under the
Exchange Act.

(g)           A “Change in Control”
occurs if:

(i)            any Person or related group of Persons
(other than Executive and his Related Persons, the Company or a Person that
directly or indirectly controls, is controlled by, or is under common control
with, the Company) is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing thirty percent (30%)
or more of the combined voting power of the Company’s then
outstanding securities; or

(ii)           the stockholders of the Company approve
a merger or consolidation of the Company with any other corporation (or
other entity), other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than sixty-six and
two-thirds percent (66-2/3%) of the combined voting power
of the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation; provided,
however, that a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no Person
acquires thirty percent (30%) or more of the combined voting power of the
Company’s then outstanding securities shall not constitute a Change in Control;
or

 4
 

(iii)          the stockholders of the Company approve a plan
of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets;
or

(iv)          a majority of the members of the Board of
Directors of the Company cease to be Continuing Directors.

(h)           “Code” means the
Internal Revenue Code of 1986, as amended.

(i)            “Continuing Directors”
means, as of any date of determination, any member of the Board of Directors
who (i) was a member of such Board of Directors on the date of the
Agreement or (ii) was nominated for election or elected to such Board of
Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination or election.

(j)            “Exchange Act” means
the Exchange Act of 1934, as amended.

(k)           “Person” is given the
meaning as such term is used in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that unless this Agreement provides to
the contrary, the term shall not include the entity, any trustee or other
fiduciary holding securities under an employee benefit plan of the entity,
or any corporation owned, directly or indirectly, by the stockholders of the
entity in substantially the same proportions as their ownership of stock of the
entity.

(l)            “Related Person” means
any immediate family member (spouse, partner, parent, sibling or child whether
by birth or adoption) of the Executive and any trust, estate or foundation, the
beneficiary of which is the Executive and/or an immediate family member of the
Executive.

6.             Certain Benefits
Upon Termination.  Executive’s
employment shall be terminated upon the earlier of (i) the voluntary
resignation of Executive with or without Good Reason; (ii) Executive’s death or
permanent disability, or (iii) upon the termination of Executive’s employment
by LTC for any reason at any time.  In
the event of such termination, the below provisions of this Section 6 shall
apply, and, in the event of a Change in Control, whether or not Executive’s
employment is terminated thereby, Section 6(e) shall apply.

(a)           If Executive’s
employment by LTC is terminated by LTC at any time without Cause, or if
Executive terminates his employment for Good Reason, unless the termination is
due to a Change of Control and all required payments are made to Executive
thereunder, the Provisions of Section 6(e) shall remain in full force and
effect until the earlier of (i) a Change of Control and all required payments
to Executive thereunder, and (ii) four (4) years from the effective date of
termination.

(b)           If Executive
voluntarily terminates his employment without Good Reason, (i) LTC shall have
no obligation to pay Executive any salary other than accrued and unpaid salary
and accrued vacation pay; (ii) Executive will no longer be subject to any
Change of Control provision; and, (iii) Executive’s Health Insurance Benefits
as set forth in Section 4(c) of this Agreement shall survive such termination,
and the restrictions on Executive’s Prior RSA’s shall lapse as set forth in
Section 4(f) of this Agreement.

 5
 

(c)           If Executive’s
employment by LTC terminates for any reason other than as a result of (i) a
termination for Cause, or (ii) a voluntary resignation by Executive without
Good Reason, or (iii) a Change in Control of the Company, then LTC shall pay
Executive a lump sum severance payment equal to four times his Base Salary; provided that if employment terminates by reason of
Executive’s death or disability, then such salary shall be paid only to the
extent the Company has available “key man” life, disability or similar
insurance relating to the death or disability of Executive.

(d)           In the event the
Company nominates Executive to a proposed slate of Directors and recommends his
election, but Executive is not elected, the terms and provisions of this
Agreement shall remain in full force and effect; provided,
however, Executive’s position and title shall be changed to Senior
Advisor/Consultant to the Chief Executive Officer,  but there shall be no reduction in his
compensation or benefits.

(e)           Upon a Change in Control
of the Company, whether or not Executive’s employment is terminated thereby, (i)
LTC shall pay Executive a lump sum severance payment in cash equal to Five
Million Dollars ($5,000,000), (ii) all stock options shall automatically become
exercisable, Executive’s employment shall be terminated, and as provided in
Section 4(f) hereof, restrictions on all Prior RSA’s shall automatically lapse
concurrently upon such termination; provided, however,
Executive’s Health Care Benefits and the Health Insurance Buyout Right under
Section 4 shall remain in full force and effect and shall survive such
termination.

(f)            COBRA.  If Executive’s employment by LTC terminates
for any reason, except for LTC’s termination of Executive’s employment for
Cause or a voluntary resignation by Executive without a Good Reason, LTC shall
offer to Executive the opportunity to participate in all Company-provided
medical and dental plans to the extent Executive elects and remains eligible
for coverage under COBRA for a maximum period of eighteen (18) months at
Company expense to the extent the benefits thereunder are not duplicative of
Executive’s Health Insurance Benefits; provided, however,
in the event Executive’s employment by LTC terminates upon a Change in Control
of the Company, then Executive shall not be given the opportunity to
participate in any of such medical and dental plans except to the extent
required by law and except as required in accordance with Executive’s Health
Insurance Benefits.  The provisions of
this Section 6(f) are intended to specify Executive’s rights under COBRA and
are not intended to limit or reduce Executive’s Health Insurance Benefits.

(g)           In the event that
Executive’s employment terminates by reason of his death, all benefits provided
in this Section 6 shall be paid to his estate or as his executor shall direct,
but payment may be deferred until Executive’s executor or personal
representative has been appointed and qualified pursuant to the laws in effect
in Executive’s jurisdiction of residence at the time of his death; provided, however, Executive’s Health Insurance Benefits as
they relate to his daughters shall remain in full force and effect until
Executive’s daughters attain the age of 22 years.

 6
 

(h)           LTC shall make all
payments pursuant to the foregoing subsections (a) through (g) concurrently
with the date of termination of Executive’s employment or consummation of a
Change in Control of the Company, as applicable.

(i)            LTC shall have no
liability under this Section 6 if Executive’s employment pursuant to this
Agreement is terminated by LTC for Cause or by Executive without a Good Reason;
provided, however, that if Executive’s
employment pursuant to this Agreement is terminated by LTC for Cause or by
Executive without a Good Reason at any time after a Change of Control which did
not result in Executive’s employment being terminated, such post-Change of
Control termination by LTC for Cause or by Executive without a Good Reason
shall not affect in any way Executive’s Health Insurance Benefits or the Health
Insurance Buyout Right, the one time severance payment described in Paragraph
6(e), above or any other rights, benefits or entitlements to which Executive
may be entitled as a result of such Change of Control.

(j)            Gross-Up.

(i)            If it shall be
determined that any payment, distribution or benefit received or to be received
by Executive from the Company (whether payable pursuant to the terms of this
Agreement or any other plan, arrangements or agreement with the Company or an
Affiliate (as defined above) (“Payments”) would be subject to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”), then Executive shall be
entitled to receive an additional payment (the “Excise Tax Gross-Up Payment) in
an amount such that the net amount retained by Executive, after the calculation
and deduction of any Excise Tax on the Payments and any federal, state and
local income taxes and excise tax on the Excise Tax Gross-Up Payment provided
for in this Section 6(j), shall be equal to the Payments.  In determining this amount, the amount of the
Excise Tax Gross-Up Payment attributable to federal income taxes shall be
reduced by the maximum reduction in federal income taxes that could be obtained
by the deduction of the portion of the Excise Tax Gross-Up Payment attributable
to state and local income taxes. 
Finally, the Excise Tax Gross-Up Payment shall be reduced by income or
excise tax withholding payments made by the Company or any affiliate of either
to any federal, state or local taxing authority with respect to the Excise Tax
Gross-Up Payment that was not deducted from compensation payable to Executive.

(ii)           All determinations
required to be made under this Section 6(j), including whether and when an
Excise Tax Gross-Up Payment is required and the amount of such Excise Tax
Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, except as specified in Section 6(j)(i) above, shall be made by
the Company’s independent auditors (the “Accounting Firm”), which shall provide
detailed supporting calculations both to the Company and Executive within
fifteen (15) business days after the Company makes any Payments to
Executive.  Such determination of tax
liability made by the Accounting Firm shall be subject to review by Executive’s
tax advisor and, if Executive’s tax advisor does not agree with such
determination reached by the Accounting Firm, then the Accounting Firm and
Executive’s tax advisor shall jointly designate a nationally recognized public
accounting firm, which shall make such determination.  All reasonable fees and expenses of the
accountants and tax advisors retained by either Executive or the Company shall
be borne by the Company.  Any Excise Tax
Gross-Up Payment, as determined pursuant to this Section 6(j), shall be paid by
the Company to Executive within five days after the receipt of such
determination.  Any determination by a
jointly designated public accounting firm shall be binding upon the Company and
Executive.

 7
 

(iii)          As a result of the
uncertainty in the application of Subsection 4999 of the Code at the time of
the initial determination hereunder, it is possible that Excise Tax Gross-Up
Payments will not have been made by the Company that should have been made
consistent with the calculations required to be made hereunder (“Underpayment”).  In the event that Executive thereafter is
required to make a payment of any Excise Tax, any such Underpayment calculated
in accordance with and in the same manner as the Excise Tax Gross-Up Payment in
Section 6(j)(i) above shall be promptly paid by the Company to or for the
benefit of Executive.  In the event that
the Excise Tax Gross-Up Payment exceeds the amount subsequently
determined to be due, such excess shall constitute a loan from the Company
(together with interest at the rate provided in Section 1274(b)(2)(B) of the
Code).

7.             [Intentionally
Omitted.]

8.             Indemnification.  LTC shall indemnify Executive and hold him
harmless from and against all claims, losses, damages, expense or liabilities
(including expenses of defense and settlement) based upon or in any way arising
from or connected with his employment by LTC, to the maximum extent permitted
by law.  To the fullest extent permitted
by law, LTC shall advance to Executive all expenses necessary in connection
with the defense of any action or claim which is brought if indemnification
cannot be determined to be available prior to the conclusion of such action or
the investigation of such claim. The provisions of this Section 8 shall survive
any termination or expiration of this Agreement.  LTS shall investigate in good faith the
availability and cost of directors’ and officers’ insurance and shall include
Executive as an insured in any directors’ and officers’ insurance policy it
maintains.

9.             Attorney Fees.  In the event that any action or proceeding is
brought to enforce the terms and provisions of this Agreement, the prevailing
party shall be entitled to recover reasonable attorneys’ fees.

10.           Notices.  All notices and other communications provided
to either party hereto under this Agreement shall be in writing and delivered
by certified or registered mail to such party at its address set forth below
its signature hereto, or at such other address as may be designated by such
party in a notice to the other party. 
Any notice, if mailed and properly addressed with postage prepaid, shall
be deemed given when received.

11.           Construction.  In construing this Agreement, above, if any
portion of this Agreement shall be found to be invalid or unenforceable, the
remaining terms and provisions of this Agreement shall be given effect to the
maximum extent permitted without considering the void, invalid or unenforceable
provision.  In construing this Agreement,
the singular shall include the plural, the masculine shall include the feminine
and neuter genders as appropriate, and no meaning or effect shall be given to
the captions of the sections in this Agreement, which are inserted for
convenience of reference only without limitation to the foregoing.  Without limitation to the foregoing, nothing
in this Agreement is intended to violate the Sarbanes-Oxley Act of 2002, and to
the extent that any provision of this Agreement would constitute such a
violation, such provision shall be modified to the extent required by such Act,
or, to the extent such provision cannot be so modified and is found to be
invalid or unenforceable, the remaining terms and provisions shall be given
effect to the maximum extent permitted without considering the void, invalid or
unenforceable provision.

 8
 

Notwithstanding
any other provision of the Agreement, to the extent that (i) any amount paid
pursuant to the Agreement is treated as nonqualified deferred compensation
pursuant to Section 409A of the Internal Revenue Code of 1986 (the “Code”) and
(ii) the Executive is a “specified employee” pursuant to Section 409A(2)(B) of
the Code, then such payments shall be made on the date which is six (6) months
after the date of the Executive’s separation from service.  In connection with the payment
of any obligation that is delayed pursuant to this Rider, the Company shall
establish an irrevocable trust to hold funds to be used for payment of such
obligations.  Upon the date that such
amount would otherwise be payable, the Company shall deposit into such
irrevocable trust an amount equal to the obligation.  However, notwithstanding the establishment of
the irrevocable trust, the Company’s obligations under the Agreement upon the
Executive’s termination of employment shall constitute a general, unsecured
obligation of the Company and any amount payable to the Executive shall be paid
solely out of the Company’s general assets, and the Executive shall have no
right to any specific assets of the Company. 
The funds, if any, contained or contributed to the irrevocable trust
shall remain available for the claims of the Company’s general creditors.

12.           Headings.  The section headings hereof have been
inserted for convenience of reference only and shall not be construed to affect
the meaning, construction or effect of this Agreement.

13.           Governing Law.  The provisions of this Agreement shall be
construed and interpreted in accordance with the internal laws of the State of
California as at the time in effect.

14.           Entire Agreement.  This Agreement constitutes the entire
agreement and supersedes all other prior agreements (including the Prior
Employment Agreement) and undertakings, both written and oral, among Executive
and the Company, with respect to the subject matter hereof.

 9
 

IN
WITNESS WHEREOF, this Agreement has been executed on the date
set forth below, to be effective as of the date specified in the first
paragraph of this Agreement.

	
  

  	
   

  	
  LTC PROPERTIES, INC.,

  
	
   

  	
   

  	
  a Maryland Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Wendy Simpson

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
  31365 Oak Crest Drive,
  Suite 200

  	
   

  	
  By:

  	
  /s/ Timothy Triche

  	
   

  
	
  Westlake
  Village, CA 91361

  	
   

  	
  Chairman of
  Compensation

  
	
   

  	
   

  	
  Committee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Executive:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Andre Dimitriadis

  	
   

  
	
   

  	
   

  	
  Andre C. Dimitriadis

  

 

 10

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