Document:

EXHIBIT
10.2

 

PERFORMANCE-BASED RESTRICTED STOCK UNIT

GRANT AGREEMENT

 

 

                THIS PERFORMANCE-BASED
RESTRICTED STOCK UNIT GRANT AGREEMENT (the “Agreement”), effective as of the 30th day
of July, 2014 (the “Grant Date”), between Health Care REIT, Inc., a
Delaware corporation (the “Corporation”), and Thomas J. DeRosa (the “Participant”). 

 

WITNESSETH:

 

                WHEREAS, the Participant is an employee and
executive officer of the Corporation;

 

                WHEREAS, the Corporation adopted the Amended and
Restated Health Care REIT, Inc. 2005 Long-Term Incentive Plan (the “Plan”)
in order to provide non-employee directors and select officers and key
employees with incentives to achieve long-term corporate objectives; and

 

                WHEREAS, the
Compensation Committee of the Corporation’s Board of Directors has determined
that the Participant shall be granted Performance Based Restricted Stock Units
with respect to shares of the Corporation’s common stock, $1.00 par value per
share (“Common Stock”), based upon satisfaction of certain performance
objectives established by the Compensation Committee and the continued
employment of the Participant, on the terms and conditions set forth below.

 

                NOW, THEREFORE, in consideration of the past and future
services provided to the Corporation by the Participant and the various
covenants and agreements herein contained, and intending to be legally bound
hereby, the parties hereto agree as follows:

 

                1.             Grant
of Restricted Stock Units. 

 

                (a)  The Corporation
hereby grants to the Participant a number of Restricted Stock Units with
respect to a total of 15,618 shares of Common Stock subject to satisfaction of
the vesting conditions and other terms set forth in this Agreement.  The
Participant shall not be required to make any payment to the Corporation (other
than his or her past and future services to the Corporation) in exchange for
such Restricted Stock Units or in exchange for the issuance of shares of Common
Stock upon settlement of any fully vested Restricted Stock Units.  This Award
has been granted pursuant to the Plan and is subject to all the terms and
provisions thereof which are incorporated by reference into this Agreement.  

 

                (b)  Except as otherwise
specifically provided in this Agreement, the Participant shall have no rights
as a stockholder of the Corporation by virtue of any Restricted Stock Units
granted under this Agreement unless and until shares of Common Stock are issued
to the Participant upon settlement of the Restricted Stock Units.  

 

                2.             Performance
Goals. 

 

                (a)           The
Restricted Stock Units will provisionally vest based upon the Participant’s
achievement of the performance goals set forth below in Section 2(b) during the
one-year performance period that began on April 13, 2014 and ends on April 12,
2015 (the “Performance Period”).  

 

                (b)           As soon as practicable but in no
event later than the date sixty (60) days following the end of the Performance
Period, the Compensation Committee shall determine in its sole and absolute
discretion the number of Restricted Stock Units that will provisionally vest as
follows:  

 

                                1)            Up to 50% of the
Restricted Stock Units (7,809) will become provisionally vested on the basis of
the Participant’s successful completion of the restructure of the Corporation’s
management team as described in further detail in Exhibit A-1 as determined by
the Compensation Committee.

 

                                2)            Up to 50% of the
Restricted Stock Units (7,809) will become provisionally vested on the basis of
the Participant’s successful implementation of the Corporation’s international
strategy as described in further detail in Exhibit A-2 as determined by the
Compensation Committee.

 

 

  

 

                (c)           To the
extent the Performance Goals are not achieved, any unvested Restricted Stock
Units will be automatically cancelled at the time that the Compensation
Committee determines the extent to which Participant has achieved the
Performance Goals, except as otherwise provided in Section 6 of this Agreement. 

 

                3.             Vesting. 

 

                (a)           Subject to
the satisfaction of the Performance Goals and the terms and conditions of this
Agreement, if and to the extent the Performance Goals are achieved, any
Restricted Stock Units that provisionally vested shall fully vest in three
installments as long as the Participant remains continuously employed by the
Corporation or a Subsidiary from the Grant Date until the applicable vesting
date, or at such earlier time as the Restricted Stock Units may fully vest
pursuant to Section 6 of this Agreement.  In the absence of any accelerated
vesting under Section 6, any Restricted Stock Units that provisionally vested
upon achievement of the Performance Goals shall fully vest in accordance with
the following schedule:

 

                                (1)
one-third of the Restricted Stock Units provisionally vested based upon
achievement of the Performance Goals will fully vest on the later of the date
that the Compensation Committee certifies the achievement of the Performance
Goals or April 13, 2015;

 

                                (2) 
one-third will fully vest on April 13, 2016; and

                 

                                (3) 
one-third will fully vest on April 13, 2017.

 

                (b)           The
Restricted Stock Units may not be sold, transferred, assigned, pledged or
otherwise encumbered or disposed of by the Participant, and the shares of
Common Stock potentially issuable to the Participant pursuant to these Restricted
Stock Units may not be sold, transferred, assigned, pledged or otherwise
encumbered by the Participant until such shares are so issued.  Any attempt to
dispose of the Restricted Stock Units in a manner contrary to the restrictions
set forth in this Agreement shall be ineffective.

 

                4.             Deferred
Settlement.

 

                                (a)           The
settlement of any fully vested Restricted Stock Units shall be automatically
deferred until the date (i) the Participant experiences a “separation from
service” as defined under Treas. Reg. §1.409A-1(h) promulgated under Section
409A of the Code (“Section 409A”), (ii) an event described in Treas.
Reg. §1.409A-3(i)(5) promulgated under Section 409A, including a change in the
ownership or effective control of the Corporation, or (iii) the Participant’s
death (the “Payment Event”).  The Corporation shall determine when the
Participant has experienced a “separation from service” for purposes of Section
409A of the Code. 

    

                                (b)           Upon
the Payment Event, (i) the Corporation shall cause a number of shares of Common
Stock equal to the number of fully vested Restricted Stock Units to be issued
to the Participant in book entry form and registered in the name of the
Participant, but not before the Participant has made arrangements satisfactory
to the Corporation for tax withholding (as required by Section 5 below) and
(ii) the Corporation shall distribute to the Participant a cash payment equal
to the fully vested dollar amount then accumulated in his vested account, as
described in Section 7.  Evidence of ownership of such shares of Common Stock
and any cash distribution shall be delivered to the Participant (or to his or
her designated nominee) within sixty (60) days following the Payment Event. 
Once shares of Common Stock have been issued, the corresponding vested
Restricted Stock Units shall be considered cancelled and shall be of no further
force or effect.

 

                                (c)           Notwithstanding
the foregoing, if the Participant is a “specified employee” within the meaning
of section 409A of the Code at the time of a Payment Event, if the Payment
Event is a result of such Participant’s “separation from service” (within the
meaning of Section 409A of the Code) as determined by the Corporation, other
than due to such Participant’s death, then any fully vested Restricted Stock
Units will be settled within 30 days following the date which is six (6) months
and one (1) day following the date of the Participant’s “separation from
service.”

 

                                (d)           Prior
to the settlement of any fully vested Restricted Stock Units, such Restricted
Stock Units will represent an unfunded and unsecured obligation of the
Corporation, payable only from the general assets of the Corporation to the
extent and under the terms set forth in this Agreement.  

 

                5.             Tax
Withholding. 

 

                The Corporation shall
notify the Participant of the amount of tax that must be withheld by the
Corporation under all applicable federal, state and local tax laws upon the
vesting and payment of any deferred Restricted Stock Units.  The Participant 

 

  

 

agrees to make arrangements with the Corporation to (a)
remit the required amount to the Corporation in cash, (b) deliver to the Corporation
shares of Common Stock currently held by the Participant (including shares
issuable under the vested Restricted Stock Units) with a value per share equal
to the then current fair market value of the Common Stock, (c) authorize the
deduction of the required amount from the Participant’s compensation, and/or
(d) otherwise provide for payment of the required amount in a manner
satisfactory to the Corporation that conveys a benefit to the Corporation.  

   

                6.             Termination
of Employment. 

 

                                (a)           If
the Participant’s employment with the Corporation terminates, the provisions of
this Section 6 shall govern the treatment of this award exclusively, regardless
of the provision of any other agreement or arrangement to which the Participant
is a party, or any termination or severance policies of the Corporation then in
effect, which shall be superseded by this Agreement.   Notwithstanding the
foregoing, the Corporation intends that this Agreement not be in conflict with
the terms of the Participant’s Employment Agreement, and accordingly, to the
extent the Participant is required to deliver an effective release as a
condition to receiving severance benefits under the Participant’s Employment
Agreement upon certain termination events, the acceleration of vesting and any
payments to be received by the Participant hereunder as a result of such
termination event shall also be conditioned upon and subject to the
Participant’s delivery of an effective release. 

 

                                (b)           Termination
for Cause or Without Good Reason.  If the Participant’s employment with the
Corporation is involuntarily terminated for “Cause” (as defined in the
Participant’s Employment Agreement) before all Restricted Stock Units are fully
vested, or if the Participant voluntarily terminates his employment with the
Corporation without Good Reason (as defined in the Participant’s Employment
Agreement)(other than after a Change in Corporate Control (as described in
subsection (e) below) occurring before all Restricted Stock Units are fully
vested or as provided in subsections (c) or (d) below), including any
termination after the term of the Participant’s Employment Agreement expires by
reason of the Participant’s election not to extend the term of the Employment
Agreement, any Restricted Stock Units that have not previously become fully
vested and have not previously been forfeited (and the corresponding Dividend
Equivalent Rights) shall immediately be forfeited.  

 

                                (c)           Termination
of Employment for Certain Events Prior to the End of the Performance Period.
 

 

                                                (i)            If
the Participant’s employment is terminated involuntarily without Cause or the
Participant resigns for Good Reason both prior to the end of the Performance
Period and in connection with a Change in Corporate Control (as described in
further detail in Section 6 of the Participant’s Employment Agreement), the
Restricted Stock Units shall become fully vested based upon a determination of
actual level of achievement of the Performance Goals by the Compensation
Committee both (A) immediately prior to the occurrence of the Change in
Corporate Control and (B) at the time of such termination of employment,
whichever would result in the greater amount of vesting to the Participant.  If
the Participant’s employment is terminated involuntarily without Cause or for
Good Reason both prior to the end of the Performance Period and not in connection
with a Change in Corporate Control, the Restricted Stock Units shall become
vested based upon a determination of actual level of achievement of Performance
Goals by the Compensation Committee of the Board as of the end of the quarter
immediately preceding the Executive’s termination.  Settlement of any fully
vested Restricted Stock Units will be deferred or settled in accordance with
Section 4.     

  

                                                (ii)           If
the termination of the Participant’s employment occurs as a result of the
Participant’s death or after a finding of the Participant’s permanent and total
disability, the Participant shall fully vest in a pro-rated number of
Restricted Stock Units determined by multiplying the award by a fraction, the
numerator of which shall be the number of full and partial months in which the
Participant was employed by the Corporation in the Performance Period and the
denominator of which shall be twelve (12).  Settlement of any fully vested
Restricted Stock Units will be deferred or settled in accordance with Section
4.     

 

                                (d)           Termination
of Employment for Certain Events Following the End of the Performance Period. 

                 

                                                (i)            If
the Participant’s employment is terminated involuntarily without Cause or the
Participant resigns for Good Reason following the end of the Performance
Period, including an involuntary termination without Cause as a result of the
Corporation’s election not to extend the term of the Participant’s Employment
Agreement, or in the event of a Change in Corporate Control, full vesting of
any provisionally vested Restricted Stock Units then outstanding shall be
accelerated and settlement of such Restricted Stock Units shall be deferred or
settled in accordance with Section 4.   

 

                                                (ii)           If
the termination of the Participant’s employment occurs as a result of the
Participant’s death or after a finding of the Participant’s permanent and total
disability, full vesting of any provisionally vested Restricted Stock Units
then outstanding shall be accelerated and settlement of such Restricted Stock
Units shall be deferred or settled in accordance with Section 4.  

 

 

  

 

                                (e)          
For purposes of this Section 6, a “Change in Corporate Control” shall
have the meaning set forth in the Participant’s Employment Agreement.  To the
extent that there is a conflict between the definition set forth in the
Participant’s Employment Agreement and the definition set forth in the Plan,
the definition of “Change in Corporate Control” set forth in the Participant’s
Employment Agreement shall control.                     

 

                7.             Dividend
Equivalent Rights. 

 

(a)           The Participant shall have
an unvested and vested account for purposes of this Section 7.  During such
time as any of the Restricted Stock Units remain outstanding and not yet fully
vested, whenever the Corporation pays dividends on the Common Stock, the
Participant’s unvested account shall be credited with an amount equal to the
dividends that would have been payable with respect to the underlying shares of
Common Stock if such Restricted Stock Units were outstanding shares of Common
Stock on the dividend record date (“Dividend Equivalent Rights”). 
Whenever the Corporation pays dividends on the Common Stock, the Participant’s
vested account shall be credited with vested Dividend Equivalent Rights for all
outstanding and fully vested Restricted Stock Units.  

 

(b)           When any or all of the
Restricted Stock Units with respect to which the Participant has been granted
Dividend Equivalent Rights fully vest, the Participant shall become vested  in
an amount equal to (i) the dollar amount then accumulated in his or her
unvested account, as described above, and not previously forfeited, multiplied
by (ii) a fraction, (A) the numerator of which shall be the number of
Restricted Stock Units that become fully vested on such date and (B) the
denominator of which shall be the sum of such number and the total number of
Restricted Stock Units that have not yet fully vested or been forfeited.  Any
vested amounts shall then be transferred to Participant’s vested account.    

 

                                (c)           Upon
termination or forfeiture of all or any portion of the Restricted Stock Units,
all rights and claims to the corresponding Dividend Equivalent Rights will be
terminated.

 

                                (d)           All
amounts held in a Participant’s vested account shall be distributed in cash at
the same time that the corresponding fully vested Restricted Stock Units are
settled in accordance with Section 4.  No distribution shall be made until the
Participant has made arrangements with the Corporation to withhold all
applicable payroll taxes from the distribution, or to satisfy the tax
withholding obligations in some other manner, as described in Section 5 above. 

 

                8.             Securities
Laws. 

 

                                The
Corporation may from time to time impose such conditions on the vesting of the
Restricted Stock Units, and/or the issuance of shares of Common Stock upon
settlement of the Restricted Stock Units, as it deems reasonably necessary to
ensure that any grant of Restricted Stock Units and issuance of shares under
this Agreement will satisfy the applicable requirements of federal, state and
foreign securities laws.  Such conditions may include, without limitation, the
partial or complete suspension of the right to receive shares of Common Stock
upon the settlement of the Restricted Stock Units until the Common Stock has
been registered under the Securities Act of 1933, as amended.  In all events,
if the issuance of any shares of Common Stock is delayed by application of this
Section 9, such issuance shall occur on the earliest date on which it would not
violate applicable law.

 

                9.             Grant
Not to Affect Employment.

 

                                Neither
this Agreement nor the Restricted Stock Units granted hereunder shall confer
upon the Participant any right to continued employment with the Corporation. 
This Agreement shall not in any way modify or restrict any rights the
Corporation may have to terminate such employment under the terms of the
Participant’s Employment Agreement with the Corporation.

 

             10.          Adjustments to Restricted Stock Units. 
 

 

                                In the
event of any change or changes in the outstanding Common Stock by reason of any
stock dividend, recapitalization, reorganization, merger, consolidation,
split-up, combination or any similar transaction, the number of Restricted
Stock Units granted to the Participant under this Agreement, as well as the
number of related Dividend Equivalent Rights, shall be adjusted by the
Compensation Committee pursuant to Section 11.2 of the Plan in such manner as
the Committee deems appropriate to prevent substantial dilution or enlargement
of the rights granted to the Participant.

 

                11.          Miscellaneous. 

 

                                (a)           This
Agreement may be executed in one or more counterparts, all of which taken
together will constitute one and the same instrument.

 

  

 

 

                                (b)           The
terms of this Agreement may only be amended, modified or waived by a written
agreement executed by both of the parties hereto.

 

                (c)           The provisions of the Plan are hereby made a part of this
Agreement.  In the event of any conflict between the provisions of this
Agreement and those of the Plan, the provisions of this Agreement shall
control. 

 

                                (d)           All
Restricted Stock Units granted under this Agreement
are intended to be compliant with Section 409A of the Code, and shall be
interpreted, construed and operated to reflect this intent.  Notwithstanding
the foregoing, this Agreement may be amended at any time by the Corporation,
without the consent of any party, to the extent that it is necessary or
desirable to satisfy any of the requirements under Section 409A of the Code,
but the Corporation shall not be under any obligation to make any such
amendment.  Nothing in this Agreement shall provide a basis for any person to
take action against the Corporation based on matters covered by Section 409A of
the Code, including the tax treatment of any amount paid or Restricted Stock
Units granted under this Agreement, and under no circumstances shall the
Corporation shall have any liability to the Participant or his or her estate or
any other party for any taxes, penalties or interest due on amounts paid or
payable under this Agreement, including taxes, penalties or interest imposed
under Section 409A.   

 

                                (e)           The
validity, performance, construction and effect of this Agreement shall be
governed by the laws of the State of Ohio, without giving effect to principles
of conflicts of law; provided, however, that matters of corporate law,
including the issuance of shares of Common Stock, shall be governed by the
Delaware General Corporation Law.

 

                IN WITNESS WHEREOF, the parties have executed this
Performance-Based Restricted Stock Unit Grant Agreement on the date and year
first above written.

 

HEALTH CARE REIT, INC.                                                          PARTICIPANT:

 

 

By: /s/ Erin C. Ibele                                                                             /s/
Thomas J. DeRosa                                         

                Erin C. Ibele                                                                          Thomas
J. DeRosaRGS-2014.9.30-EX10.b

Exhibit 10(b)
AMENDMENT 
to
AMENDED AND RESTATED 2004 LONG-TERM INCENTIVE PLAN
THIS AMENDMENT TO Long-Term Incentive Plan (the “Amendment”) was approved by the Compensation Committee of the Board of Directors of Regis Corporation (the “Corporation”), effective August 29, 2014. 

		
	1.
	The definition of “Change in Control” in the Corporation’s Amended and Restated 2004 Long-Term Incentive Plan is hereby replaced by the following: 

2.7 “Change in Control” means:

(1) with respect to Awards granted before January 1, 2009, the first to occur of any of the following events:

(a) the acquisition by any “person,” as that term is used in Sections 13(d) and 14(d) of the Exchange Act of “beneficial ownership,” as defined in Rule 13d-3 under the Exchange Act, directly or indirectly, of 20% or more of the shares of the Company’s capital stock;

(b) the first day on which less than two-thirds of the total membership of the Board of Directors shall be Continuing Directors (as that term is defined in Article VII of the Company’s Articles of Incorporation);

(c) the approval by the shareholders of the Company of a merger, share exchange, or consolidation of the Company (a “Transaction”), other than a Transaction which would result in the Voting Stock 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 50% of the Voting Stock of the Company or such surviving entity immediately after such Transaction; or

(d) the approval by the shareholders of the Company of a complete liquidation of the Company or a sale or disposition of all or substantially all the assets of the Company; and

(2) with respect to Awards granted on or after January 1, 2009, the first to occur of any of the following 
events:

(a) any “person” within the meaning of Section 2(a)(2) of the Securities Act of 1933 and Section 14(d) of the Exchange Act is or has become the “beneficial 

owner,” as defined in Rule 13d-3 under the Exchange Act, of twenty percent (20%) or more of either (i) the then outstanding shares of Common Stock of the Company (the “Outstanding Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Voting Securities”), except for an acquisition by an entity resulting from a Business Combination (as defined below) in which clauses (x) and (y) of subparagraph (b) applies, provided that Change in Control shall not occur if a person becomes the beneficial owner of twenty percent (20%) or more of the Outstanding Common Stock or Outstanding Voting Securities solely as the result of a change in the aggregate number of shares of Outstanding Common Stock or Outstanding Voting Securities since the last date on which such person acquired beneficial ownership of any shares of Common Stock or voting securities (provided, however, that if a person becomes the beneficial owner of twenty percent (20%) or more of the Outstanding Common Stock or Outstanding Voting Securities by reason of such change in the aggregate number of shares of Outstanding Common Stock or Outstanding Voting Securities and thereafter becomes the beneficial owner of any additional shares of Common Stock or voting securities (other than pursuant to a dividend or distribution paid or made by the Company on the Outstanding Common Stock or Outstanding Voting Securities or pursuant to a split or subdivision of the Outstanding Common Stock or Outstanding Voting Securities), then a Change in Control shall occur unless upon becoming the beneficial owner of such additional shares of Common Stock or voting securities such person does not beneficially own more than twenty percent (20%) of the Outstanding Common Stock or Outstanding Voting Securities);

(b) consummation of (i) a merger or consolidation of the Company with or into another entity, (ii) a statutory share exchange or (iii) the acquisition by any person (as defined above) of all or substantially all of the assets of the Company (each, a “Business Combination”), unless immediately following such Business Combination, (x) all or substantially all of the beneficial owners of the Outstanding Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of the voting power of the then outstanding shares of voting stock (or comparable voting equity interests) of the surviving or acquiring entity resulting from such Business Combination (including such beneficial ownership of an entity that, as a result of such transaction, owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries), in substantially the same proportions (as compared to the other beneficial owners of the Company’s voting stock immediately prior to such Business Combination) as their beneficial ownership of the Company’s voting stock immediately prior to such Business Combination and (y) no person (as defined above) beneficially owns, directly or indirectly, twenty percent (20%) or more of the voting power of the outstanding voting stock (or comparable equity interests) of the surviving or acquiring entity (other than a direct or indirect parent entity of the surviving or 

acquiring entity, that, after giving effect to the Business Combination, beneficially owns, directly or indirectly, 100% of the outstanding voting stock (or comparable equity interests) of the surviving or acquiring entity), or

(c) individuals who constitute the Company’s Board of Directors on the Effective Date (the “Incumbent Board”) have ceased for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least three-quarters (75%) of the directors comprising the Incumbent Board shall be, for purposes of this Plan, considered as though such person were a member of the Incumbent Board;

provided, however, that for any payment with respect to any Award under the Plan that is subject to Section 409A of the Code, the Change in Control must also be a change in control event under Treas. Reg. Section 1.409A-3(i)(5).

	
					
	 
	 
	Certified by Eric Bakken, Corporate Secretary
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	/s/ Eric Bakken
	 

	 
	 
	 
	Eric Bakken

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