Document:

Exhibit
10.37

HEALTH CARE PROPERTY INVESTORS, INC.

2006 PERFORMANCE INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

THIS NONQUALIFIED
STOCK OPTION AGREEMENT (this “Option
Agreement”) dated _____________________ by and between HEALTH CARE PROPERTY INVESTORS, INC., a Maryland corporation
(the “Corporation”), and
___________________________ (the “Grantee”)
evidences the nonqualified stock option (the “Option”)
granted by the Corporation to the Grantee as to the number of shares of the
Corporation’s Common Stock first set forth below.

	
  Number of Shares of Common Stock:(1)

  	
   

  	
   

  	
  Award Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exercise Price per Share:(1)

  	
  $

  	
   

  	
   

  	
  Expiration Date:(1),(2)

  	
   

  
							

 

Vesting(1),(2) [The Option
shall become vested as to 20% of the total number of shares of Common Stock
subject to the Option on each of the first, second, third, fourth and fifth
anniversaries of the Award Date.]

(1)             Subject
to adjustment under Section 7.1 of the Plan.

(2)             Subject
to early termination under Section 4 of the Terms and Section 7.4 of the Plan.

The Option is granted
under the Health Care Property Investors, Inc. 2006 Performance Incentive Plan
(the “Plan”) and subject to the Terms and
Conditions of Nonqualified Stock Option (the “Terms”)
attached to this Option Agreement (incorporated herein by this reference) and
to the Plan.  The Option has been granted
to the Grantee in addition to, and not in lieu of, any other form of
compensation otherwise payable or to be paid to the Grantee.  Capitalized terms are defined in the Plan if
not defined herein.  The parties agree to
the terms of the Option set forth herein. 
The Grantee acknowledges receipt of a copy of the Terms, the Plan and
the Prospectus for the Plan.

 

	
  

  	
   

  	
   

  
	
   “GRANTEE”
  

  	
   

  	
  HEALTH CARE PROPERTY INVESTORS, INC.

  a Maryland corporation 

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

 

 

TERMS AND
CONDITIONS OF NONQUALIFIED STOCK OPTION

1.                                      Vesting;
Limits on Exercise; Incentive Stock Option Status.

The
Option shall vest and become exercisable in percentage installments of the
aggregate number of shares subject to the Option as set forth on the cover page
of this Option Agreement.  The Option may
be exercised only to the extent the Option is vested and exercisable.

·                  Cumulative
Exercisability.  To the extent that
the Option is vested and exercisable, the Grantee has the right to exercise the
Option (to the extent not previously exercised), and such right shall continue,
until the expiration or earlier termination of the Option.

·                  No
Fractional Shares.  Fractional share
interests shall be disregarded, but may be cumulated.

·                  Minimum
Exercise.  No fewer than 100 shares
of Common Stock (subject to adjustment under Section 7.1 of the Plan) may be
purchased at any one time, unless the number purchased is the total number at
the time exercisable under the Option.

·                  Nonqualified
Stock Option.  The Option is a
nonqualified stock option and is not, and shall not be, an incentive stock
option within the meaning of Section 422 of the Code.

2.                                      Continuance
of Employment/Service Required; No Employment/Service Commitment.

The vesting schedule requires continued employment or
service through each applicable vesting date as a condition to the vesting of
the applicable installment of the Option and the rights and benefits under this
Option Agreement.  Employment or service
for only a portion of the vesting period, even if a substantial portion, will
not entitle the Grantee to any proportionate vesting or avoid or mitigate a
termination of rights and benefits upon or following a termination of
employment or services as provided in Section 4 below or under the Plan.

Nothing contained in this Option Agreement or the Plan
constitutes a continued employment or service commitment by the Corporation or
any of its Subsidiaries, affects the Grantee’s status, if he or she is an
employee, as an employee at will who is subject to termination without cause,
confers upon the Grantee any right to remain employed by or in service to the
Corporation or any Subsidiary, interferes in any way with the right of the
Corporation or any Subsidiary at any time to terminate such employment or
service, or affects the right of the Corporation or any Subsidiary to increase
or decrease the Grantee’s other compensation.

3.                                      Method
of Exercise of Option.

The
Option shall be exercisable by the delivery to the Secretary of the Corporation
(or such other person as the Administrator may require pursuant to such
administrative exercise procedures as the Administrator may implement from time
to time) of:

 

 

·                  a
written notice stating the number of shares of Common Stock to be purchased
pursuant to the Option or by the completion of such other administrative
exercise procedures as the Administrator may require from time to time,

·                  payment
in full for the Exercise Price of the shares to be purchased in cash, check or
by electronic funds transfer to the Corporation;

·                  any
written statements or agreements required pursuant to Section 8.1 of the Plan;
and

·                  satisfaction
of the tax withholding provisions of Section 8.5 of the Plan.

The Administrator
also may, but is not required to, authorize a non-cash payment alternative by
notice and third party payment in such manner as may be authorized by the
Administrator.

4.                                      Early
Termination of Option.

4.1          Possible Termination of Option upon
Change in Control.  The
Option is subject to termination in connection with a Change in Control Event
or certain similar reorganization events as provided in Section 7.4 of the
Plan.

4.2          Termination of Option upon a
Termination of Grantee’s Employment or Services.  Subject to earlier termination on the
Expiration Date of the Option or pursuant to Section 4.1 above, if the Grantee
ceases to be employed by or ceases to provide services to the Corporation or a
Subsidiary, the following rules shall apply (the last day that the Grantee is
employed by or provides services to the Corporation or a Subsidiary is referred
to as the Grantee’s “Severance Date”):

·                  other
than as expressly provided below in this Section 4.2, (a) the Grantee will have
until the date that is 8 months after his or her Severance Date to exercise the
Option (or portion thereof) to the extent that it was vested on the Severance
Date, (b) the Option, to the extent not vested on the Severance Date, shall
terminate on the Severance Date, and (c) the Option, to the extent exercisable
for the 8-month period following the Severance Date and not exercised during
such period, shall terminate at the close of business on the last day of the 8-month
period; provided, however, that in the event of the Grantee’s death or Total
Disability (as defined below) at any time during the 8-month period, the
Grantee (or his or her beneficiary or personal representative, as the case may
be) will have until the date that is 12 months after the date of the Grantee’s
death or Total Disability to exercise the Option, and the Option, to the extent
exercisable for the 12-month period and not exercised during such period, shall
terminate at the close of business on the last day of the 12-month period;

·                  if
the Grantee’s employment or services are terminated by the Grantee for any
reason or by the Corporation for Cause (as defined below), (a) the Grantee will
have until the date that is 3 months after his or her Severance Date to
exercise the Option (or portion thereof) to the extent that it was vested on
the Severance Date, (b) the Option, to the extent not vested on the Severance
Date, shall terminate on the Severance Date, and (c) the Option, to the extent
exercisable for the 3-month period following the Severance Date and not
exercised during such period, shall terminate at the close of business on the
last day of the 3-month period;

 

·                  if
the termination of the Grantee’s employment or services is the result of the
Grantee’s death or Total Disability, (a) the Option will immediately become
fully vested as of the Severance Date, (b) the Grantee (or his or her beneficiary
or personal representative, as the case may be) will have until the date that
is 3 years after the Grantee’s Severance Date to exercise the Option, and (c)
the Option, to the extent exercisable for the 3-year period following the
Severance Date and not exercised during such period, shall terminate at the
close of business on the last day of the 3-year period;

·                  if
the termination of the Grantee’s employment or services is the result of the
Grantee’s Retirement (as defined below), (a) the Option will immediately become
fully vested as of the Severance Date, (b) the Grantee will have until the date
that is 3 years after the Grantee’s Severance Date to exercise the Option, and
(c) the Option, to the extent exercisable for the 3-year period following the
Severance Date and not exercised during such period, shall terminate at the
close of business on the last day of the 3-year period; provided, however, that
in the event of the Grantee’s death or Total Disability at any time during the
3-year period, the Grantee (or his or her beneficiary or personal
representative, as the case may be) will have until the date that is the later of (i) 12 months after the date of the Grantee’s death
or Total Disability or (ii) 3 years after the Grantee’s Severance Date to
exercise the Option, and the Option, to the extent exercisable for the period
ending on such date and not exercised during such period, shall terminate at
the close of business on such date.

For
purposes of the Option, “Total Disability”
means a “permanent and total disability” (within the meaning of Section
22(e)(3) of the Code or as otherwise determined by the Administrator).  For purposes of the Option, “Retirement” means the Grantee (1) has attained age 65 and
completed at least five full years of service as an employee of the Corporation
and its Subsidiaries and/or a member of the Board, or (2) has attained age 60
and completed at least fifteen full years of service as an employee of the
Corporation and its Subsidiaries and/or a member of the Board.

For
purposes of the Option, “Cause” means
that the Grantee:

(1)                                  has
been negligent in the discharge of his or her duties to the Corporation or any
of its Subsidiaries, has refused to perform stated or assigned duties or is
incompetent in or (other than by reason of a disability or analogous condition)
incapable of performing those duties;

(2)                                  has
been dishonest or committed or engaged in an act of theft, embezzlement or
fraud, a breach of confidentiality, an unauthorized disclosure or use of inside
information, customer lists, trade secrets or other confidential information;
has breached a fiduciary duty, or willfully and materially violated any other
duty, law, rule, regulation or policy of the Corporation, any of its
Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries; or
has been convicted of a felony or misdemeanor (other than minor traffic
violations or similar offenses);

 

(3)                                  has
materially breached any of the provisions of any agreement with the Corporation,
any of its Subsidiaries or any affiliate of the Corporation or any of its
Subsidiaries; or

(4)                                  has
engaged in unfair competition with, or otherwise acted intentionally in a
manner injurious to the reputation, business or assets of, the Corporation, any
of its Subsidiaries or any affiliate of the Corporation or any of its
Subsidiaries; has improperly induced a vendor or customer to break or terminate
any contract with the Corporation, any of its Subsidiaries or any affiliate of
the Corporation or any of its Subsidiaries; or has induced a principal for whom
the Corporation, any of its Subsidiaries or any affiliate of the Corporation or
any of its Subsidiaries acts as agent to terminate such agency relationship.

In all
events the Option is subject to earlier termination on the Expiration Date of
the Option or as contemplated by Section 4.1. 
The Administrator shall be the sole judge of whether the Grantee
continues to render employment or services for purposes of this Option
Agreement.

5.                                      Non-Transferability.

The
Option and any other rights of the Grantee under this Option Agreement or the
Plan are nontransferable and exercisable only by the Grantee, except as set
forth in Section 5.7 of the Plan.

6.                                      Notices.

Any
notice to be given under the terms of this Option Agreement shall be in writing
and addressed to the Corporation at its principal office to the attention of
the Secretary, and to the Grantee at the address last reflected on the
Corporation’s payroll records, or at such other address as either party may
hereafter designate in writing to the other. 
Any such notice shall be delivered in person or shall be enclosed in a
properly sealed envelope addressed as aforesaid, registered or certified, and
deposited (postage and registry or certification fee prepaid) in a post office
or branch post office regularly maintained by the United States Government.  Any such notice shall be given only when
received, but if the Grantee is no longer employed by the Corporation or a
Subsidiary, shall be deemed to have been duly given five business days after
the date mailed in accordance with the foregoing provisions of this Section 6.

7.                                      Plan.

The
Option and all rights of the Grantee under this Option Agreement are subject to
the terms and conditions of the Plan, incorporated herein by this
reference.  The Grantee agrees to be
bound by the terms of the Plan and this Option Agreement (including these
Terms).  The Grantee acknowledges having
read and understanding the Plan, the Prospectus for the Plan, and this Option
Agreement.  Unless otherwise expressly
provided in other sections of this Option Agreement, provisions of the Plan
that confer discretionary authority on the Board or the Administrator do not
and shall not be deemed to create any rights in the Grantee unless such rights
are expressly set forth herein or are otherwise in the sole discretion of the
Board or the Administrator so conferred by appropriate action of the Board or
the Administrator under the Plan after the date hereof.

 

8.                                      Entire
Agreement.

This
Option Agreement (including these Terms) and the Plan together constitute the
entire agreement and supersede all prior understandings and agreements, written
or oral, of the parties hereto with respect to the subject matter hereof.  The Plan and this Option Agreement may be
amended pursuant to Section 8.6 of the Plan.  Such amendment must be in writing and signed
by the Corporation.  The Corporation may,
however, unilaterally waive any provision hereof in writing to the extent such
waiver does not adversely affect the interests of the Grantee hereunder, but no
such waiver shall operate as or be construed to be a subsequent waiver of the
same provision or a waiver of any other provision hereof.

9.                                      Governing
Law.

This
Option Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of Maryland without regard to conflict of law
principles thereunder.

10.                               Effect
of this Agreement.

Subject
to the Corporation’s right to terminate the Option pursuant to Section 7.4 of
the Plan, this Option Agreement shall be assumed by, be binding upon and inure
to the benefit of any successor or successors to the Corporation.

11.                               Counterparts.

This
Option Agreement may be executed simultaneously in any number of counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

12.                               Section
Headings.

The
section headings of this Option Agreement are for convenience of reference only
and shall not be deemed to alter or affect any provision hereof.Exhibit 10.38

RESTRICTED
STOCK AGREEMENT

THIS RESTRICTED STOCK AGREEMENT (this “Agreement”),
is made by and between Health Care Property Investors, Inc., a Maryland corporation
(the “Company”), and <<<NAME>>> , a non-employee
member of the Company’s Board of Directors (“Holder”), effective as
of  <<<DATE>>> (“Grant
Date”).

WHEREAS, the Company maintains the Health Care
Property Investors, Inc. 2006 Performance Incentive Plan (the “Plan”); and

WHEREAS, the Plan provides for the grant of
shares of Common Stock to non-employee directors as an inducement for such directors
to enter into or remain in the service of the Company and as an incentive for
increased efforts during such service;

NOW, THEREFORE, in consideration of the mutual
covenants herein contained and other good and valuable consideration, receipt
of which is hereby acknowledged, the parties hereto do hereby agree as follows:

ARTICLE I.

DEFINITIONS

Whenever the following terms are used in this
Agreement they shall have the meaning specified below unless the context
clearly indicates to the contrary.  The
masculine pronoun shall include the feminine and neuter, and the singular the
plural, where the context so indicates. 
All capitalized terms used herein without definition shall have the
meaning ascribed to such terms in the Plan.

Section 1.1 - Disability.

“Disability” shall mean a “permanent and total
disability” (within the meaning of Section 22(e)(3) of the Code or as otherwise
determined by the Board).

Section 1.2 - Permissible Termination of
Service.

“Permissible Termination of Service” shall mean
Holder’s (i) death, (ii) Disability, (iii) removal from the Company’s Board of
Directors without cause (not including a failure to be re-elected) or (iv)
Retirement from the Company’s Board of Directors.  The Board, in its absolute discretion, shall
determine the effect of all matters and questions relating to a Permissible
Termination of Service, including without limitation whether a Termination of
Service constitutes a Permissible Termination of Service.

Section 1.3 - Restricted Shares.

“Restricted Shares” shall mean the shares of
Common Stock granted under this Agreement that are subject to Restrictions.

 

 

Section 1.4 - Restrictions.

“Restrictions”
shall mean the vesting requirements set forth in Section 3.1, the forfeiture
rights set forth in Section 3.2 and the restrictions on sale or other transfer
set forth in Section 3.3.

Section 1.5 - Retirement.

“Retirement” shall mean Holder (1) has attained
age 65 and completed at least five full years of service as an employee of the Company
and its Subsidiaries and/or a member of the Board, or (2) has attained age 60
and completed at least fifteen full years of service as an employee of the Company
and its Subsidiaries and/or a member of the Board.

Section 1.6 - Secretary.

“Secretary”
shall mean the Corporate Secretary of the Company.

Section 1.7 - Termination of Service

“Termination of Service” shall mean the termination
of Holder’s service with the Company as a director for any reason.

ARTICLE II.

ISSUANCE OF RESTRICTED SHARES

Section 2.1 - Issuance of Restricted Shares.

In consideration of the recitals and for other
good and valuable consideration, on the Grant Date the Company agrees to and
does hereby issue to Holder <<<NO. OF SHARES>>> Restricted
Shares (i.e., shares of Common
Stock subject to the Restrictions and other conditions set forth in this
Agreement).

Section 2.2 - Consideration to Company.

As partial consideration for the issuance of
Restricted Shares by the Company, Holder agrees to render faithful and
efficient services to the Company for a period of at least one (1) year from
the Grant Date.  Notwithstanding the
foregoing, Holder understands and agrees that, except as expressly provided
herein, in the event of a Termination of Service (other than a Permissible
Termination of Service), Holder shall forfeit all Restricted Shares.  Nothing in this Agreement or in the Plan
shall confer upon Holder any right to continue as a director of the Company, or
shall interfere with or restrict in any way the rights of the Company, which
are hereby expressly reserved, to remove Holder from the Board.

Section 2.3 - Adjustments in Restricted
Shares.

The Board may adjust the
Restricted Shares in accordance with the provisions of Section 7.1 of the Plan.

 2
 

 

ARTICLE III.

RESTRICTIONS

Section 3.1 - Vesting and Lapse of
Restrictions.

(a)           Subject to Sections 3.2(b) and 3.4
concerning accelerated vesting under specified circumstances, the Restrictions
with respect to each Restricted Share shall lapse as and to the extent such
Restricted Shares vest in accordance with the following schedule, conditioned
upon continued employment or service with the Company through the applicable
vesting date.  Except as provided in
Sections 3.2(b) and 3.4, the vesting of Restricted Shares and removal of
Restrictions on Restricted Shares shall cease as of the date of Termination of
Service of Holder.

	
  Number of Shares

  	
   

  	
   

  	
   

  	
  Effective Date of Vesting

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  <no. of
  shares>

  	
   

  	
  First Anniversary of
  the Grant Date

  
	
   

  	
   

  	
   

  
	
  <no. of shares>

  	
   

  	
  Second Anniversary of
  the Grant Date

  
	
   

  	
   

  	
   

  
	
  <no. of
  shares>

  	
   

  	
  Third Anniversary of
  the Grant Date

  
	
   

  	
   

  	
   

  
	
  <no of
  shares>

  	
   

  	
  Fourth Anniversary of the Grant Date

  

 

(b)           By resolution, the Board may, on such terms
and conditions as it deems appropriate, remove any or all of the Restrictions
(including without limitation, the Board may accelerate vesting) at any time or
from time to time.

Section 3.2 - Forfeiture.

(a)           Termination of Service Other Than a
Permissible Termination of Service. 
Upon a Termination of Service of Holder, other than a Permissible
Termination of Service, all Restricted Shares, to the extent such Restricted
Shares have not previously become vested pursuant to the terms hereof, shall be
automatically forfeited and cancelled effective as of the date of such
Termination of Service.

(b)           Permissible Termination of Service.  If there is a Permissible Termination of
Service of Holder, all Restricted Shares shall vest in full and all
Restrictions shall lapse immediately and automatically upon such Permissible
Termination of Service for all Restricted Shares, and no such shares shall be
forfeited or cancelled.

Section 3.3 - Restriction on Transfer of Restricted Shares.

Holder shall not sell,
exchange, transfer, alienate, hypothecate, pledge, encumber or assign any
Restricted Shares, or any rights with respect thereto.  Neither the Restricted Shares nor any
interest or right therein or part thereof shall be liable for the debts,
contracts, or engagements of Holder or his successors in interest or shall be
subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means whether such disposition be
voluntary or involuntary or by operation of law by judgment, levy, attachment,
garnishment or any other legal or equitable proceedings (including bankruptcy)
and any attempted disposition thereof shall be null and void and of no effect.

 3
 

 

 

Section 3.4 - Acceleration of Vesting and
Lapse of Restrictions.

Upon the occurrence of a Change in Control Event, the Restrictions
shall, immediately prior to the effective date of the Change in Control Event,
automatically lapse for all Restricted Shares; provided, however, that the
Restrictions shall not so lapse if and to the extent the Restricted Shares are,
in connection with the Change in Control 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 Board, and its determination shall
be final, binding and conclusive.  The
Board may make such determinations and adopt such rules and conditions as it,
in its absolute discretion, deems appropriate in connection with such
acceleration of lapse of Restrictions, including, but not by way of limitation,
provisions to ensure that any such acceleration shall be conditioned upon the
consummation of the contemplated Change in Control Event.

Section 3.5 - Escrow.

(a)           The Secretary of the Company or any other person designated by the Board as
escrow agent shall retain physical custody of any certificates
representing the Restricted Shares until
and to the extent (i) such Restricted Shares have vested and all Restrictions
have been removed or lapsed as to such shares under this Agreement, or (ii)
such shares have been forfeited or cancelled pursuant to Section 3.2.  To ensure the delivery of Holder’s Restricted
Shares upon forfeiture, Holder hereby appoints the Secretary of the Company or
any other designated escrow agent as Holder’s attorney-in-fact to assign and
transfer unto the Company (or such designee), such Restricted Shares, if any,
pursuant to Section 3.2.

(b)           The Secretary, or other escrow agent, shall not be liable
for any act he or she may do or omit to do with respect to holding the
Restricted Shares in escrow and while acting in good faith and in the exercise
of his or her judgment.

Section 3.6 - Legend.

Any share certificate or other
evidence of the Restricted Shares issued hereunder may at the discretion of the
Company be endorsed with or subject to the following legend (in addition to any
legend required under applicable state securities laws):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND CERTAIN FORFEITURES AS SET
FORTH IN A RESTRICTED STOCK AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER,
A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE ISSUER, AND SUCH SHARES
MAY NOT BE, DIRECTLY OR INDIRECTLY, OFFERED, TRANSFERRED, SOLD, ASSIGNED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNDER ANY CIRCUMSTANCES, EXCEPT
PURSUANT TO THE PROVISIONS OF SUCH AGREEMENT.

 4
 

 

 

Section 3.7 - Vested Shares without
Restrictions.

(a)           As and to the extent the Restricted Shares
vest in accordance with the terms of this Agreement, the Restrictions on such
shares shall lapse and, and subject to compliance with Section 3.7(b), such
vested shares of Common Stock shall be delivered to the Holder or for the
benefit of his or her account without the legend referenced in Section
3.6.  Such vested shares shall cease to
be considered Restricted Shares subject to the terms and conditions of this
Agreement, and shall be shares of Common Stock of the Company free of all
Restrictions.

(b)           Notwithstanding the foregoing, vested shares
shall not be delivered to the Holder or for the benefit of or to his account
unless and until the Holder shall have paid to the Company in cash or made provisions
for payment through withholding against income, the full amount of all federal
and state (or applicable foreign) withholding or other employment taxes
applicable to the taxable income of the Holder resulting from the grant of the
Restricted Shares or the lapse or removal of the Restrictions.

Section 3.8 - Restrictions on New Shares
and Distributions.

In the event of any dividend or other
distribution (including ordinary cash dividends, and whether in the form of
Common Stock, other securities, or other property), recapitalization,
reclassification, stock split, reverse stock split, reorganization, merger,
consolidation, split-off, spin-off, combination, purchase, liquidation,
dissolution, or sale, transfer, exchange or other disposition of all or substantially
all of the assets of the Company, or exchange of Common Stock or other
securities of the Company, or issuance of warrants or other rights to purchase
Common Stock or other securities of the Company, or other similar transaction
or event, is paid, issued, exchanged or distributed in respect of Restricted
Shares, such new or additional or different shares or securities or property
(including cash) which are attributable to Holder in his capacity as the owner
of the Restricted Shares, shall be considered to be Restricted Shares and shall
be subject to all of the Restrictions, unless the Board shall, in its
discretion, otherwise provide.

ARTICLE IV.

MISCELLANEOUS

Section 4.1 - Administration.

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

Section 4.2 - Conditions to Issuance of
Stock.

The
Restricted Shares may be either previously authorized but unissued shares or
issued shares which have then been reacquired by the Company.  Such shares shall be fully paid and nonassessable.  The Company shall not be required to issue or
deliver any shares of stock pursuant to this Agreement prior to fulfillment of
all of the following conditions:

 5
 

 

 

(i)            The admission of such shares to
listing on all stock exchanges on which such class of stock is then listed, if
applicable; and

(ii)           The completion of any registration or
other qualification of such shares under any state or federal law or under
rulings or regulations of the Securities and Exchange Commission or of any
other governmental regulatory body, if applicable, or the receipt of further
representations from Holder as to investment intent or completion of other
actions necessary to perfect exemptions, as the Board shall, in its absolute
discretion, deem necessary or advisable; and

(iii)          The obtaining of any approval or other
clearance from any state or federal governmental agency which the Board shall,
in its absolute discretion, determine to be necessary or advisable; and

(iv)          The lapse of such reasonable period of
time as the Board may from time to time establish for reasons of administrative
convenience; and

(v)           The receipt by the Company of payment
of any applicable withholding tax.

Section 4.3 - Rights as Stockholder.

Holder shall have all the rights of a
stockholder with respect to the Restricted Shares, including the right to vote
and receive all dividends or other distributions paid or made with respect to
the Restricted Shares, subject to Section 3.8; provided, however,
that in the discretion of the Board, any extraordinary distributions with
respect to the Common Stock may be released from the Restrictions.

Section 4.4 - Withholding Tax.

Holder agrees that in the event the issuance of the
Restricted Shares or the expiration or removal of Restrictions thereon results
in the Holder’s realization of income which for federal, state or local income
tax purposes is, in the opinion for the Company, subject to withholding of tax
at source by the Company, the Holder will pay to the Company an amount equal to
such withholding tax or the Company may withhold such amount from the Holder’s
salary or from dividends deposited with the Company with respect to the
Restricted Stock.

Section 4.5 - Section 83(b) Election.

No Holder may make an election under Section 83(b) of
the Code, or any successor section thereto, to be taxed with respect to all or
any portion of the Restricted Shares as of the date of issuance of the
Restricted Shares rather than as of the date or dates upon which the Holder
would otherwise be taxable under Section 83(a) of the Code, without the prior
consent of the Board, which consent may be withheld in its sole
discretion.  If a Holder makes a
permitted election under Section 83(b) of the Code, the Holder shall deliver a
copy of such election to the Company immediately after filing such election
with the Internal Revenue Service. 
Section 83(b) elections must be filed with the Internal Revenue Service
within 30 days following the Grant Date.

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Section 4.6 - Notices.

Any notice to be given under the terms of this
Agreement shall be in writing and addressed to the Company at its principal
office to the attention of the Secretary, and to Holder at the address last
reflected on the Company’s payroll records, or at such other address as either
party may hereafter designate in writing to the other.  Any such notice shall be delivered in person
or shall be enclosed in a properly sealed envelope addressed as aforesaid,
registered or certified, and deposited (postage and registry or certification fee
prepaid) in a post office or branch post office regularly maintained by the
United States Government.  Any such
notice shall be given only when received, but if Holder is no longer a member
of the Board, shall be deemed to have been duly given five business days after
the date mailed in accordance with the foregoing provisions of this Section
4.6.

Section 4.7 - Titles.

Titles are provided herein for convenience only
and are not to serve as a basis for interpretation or construction of this
Agreement.

Section 4.8 - Construction.

This Agreement shall be administered,
interpreted and enforced under the internal laws of the state of Maryland.

Section 4.9 - Conformity to Securities Laws.

Holder acknowledges that the Plan and this
Agreement are intended to conform to the extent necessary with all provisions
of all applicable federal and state laws, rules and regulations and to such
approvals by any listing, regulatory or other governmental authority as may, in
the opinion of counsel for the Company, be necessary or advisable in connection
therewith.  Notwithstanding anything
herein to the contrary, the Plan shall be administered, and the Restricted
Shares is granted, only in such a manner as to conform to such laws, rules and
regulations.  To the extent permitted by
applicable law, the Plan, this Agreement and the Restricted Shares shall be
deemed amended to the extent necessary to conform to such laws, rules and
regulations.

Section 4.10 - Plan.

The Restricted Shares and all rights of Holder
under this Agreement are subject to the terms and conditions of the Plan,
incorporated herein by this reference. 
Holder agrees to be bound by the terms of the Plan and this
Agreement.  Holder acknowledges having
read and understanding the Plan, the Prospectus for the Plan, and this
Agreement.  Unless otherwise expressly
provided in other sections of this Agreement, provisions of the Plan that
confer discretionary authority on the Board or the Administrator do not and
shall not be deemed to create any rights in Holder unless such rights are
expressly set forth herein or are otherwise in the sole discretion of the Board
or the Administrator so conferred by appropriate action of the Board or the
Administrator under the Plan after the date hereof.

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Section 4.11 - Entire Agreement.

This Agreement and the Plan together constitute
the entire agreement and supersede all prior understandings and agreements,
written or oral, of the parties hereto with respect to the subject matter
hereof.  The Plan and this Agreement may
be amended pursuant to Section 8.6 of the Plan.  Such amendment must be in writing and signed
by the Company.  The Company may,
however, unilaterally waive any provision hereof in writing to the extent such
waiver does not adversely affect the interests of Holder hereunder, but no such
waiver shall operate as or be construed to be a subsequent waiver of the same
provision or a waiver of any other provision hereof.

Section 4.12 - Counterparts.

This Agreement may be executed simultaneously in
any number of counterparts, each of which shall be deemed an original but all
of which together shall constitute one and the same instrument.

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

 

	
  

  	
   

  	
  HEALTH CARE PROPERTY INVESTORS, INC.

  a Maryland Company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Edward J. Henning

  Senior Vice President, General Counsel
 and Corporate Secretary

  

 

 

HOLDER

	
  

  	
   

  	
   

  
	
  <<<NAME>>>

  	
   

  	
   

  

 

 8

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