Document:

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                                                                    EXHIBIT 4.12

                        REGISTRATION RIGHTS AGREEMENT

                  THIS REGISTRATION RIGHTS AGREEMENT, dated as of August ___,
2001, is entered into by and between Health Care Property Investors, Inc., a
Maryland corporation (the "Company"), and the parties identified on the
signature page hereof as a "Unitholder" (collectively, the "Unitholders").

                                  RECITALS
                                  --------

                  WHEREAS, the Company, the Unitholders and HCPI/Utah II, LLC, a
Delaware limited liability company (the "Operating LLC") have entered into that
certain Contribution Agreement dated as of the date hereof (the "Contribution
Agreement") providing, among other things, for the contribution of certain
property by the Unitholders to the Operating LLC and the contribution of cash by
the Company to the Operating LLC; and

                  WHEREAS, it is a condition to the closing of the transactions
contemplated by the Contribution Agreement that the parties hereto enter into
this Agreement;

                  NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

                                ARTICLE I.
                               DEFINITIONS

                  Section 1.1  Definitions. The following capitalized terms, as
used in this Agreement, have the following meanings:

                  "Agreement" means this Registration Rights Agreement, as it
may be amended, supplemented or restated from time to time.

                  "Business Day" means any day except a Saturday, Sunday or
other day on which commercial banks in New York, New York, Los Angeles,
California or Salt Lake City, Utah are authorized by law to close.

                  "Closing Price" means (i) the closing price of a share of
Common Stock on the principal exchange on which shares of Common Stock are then
trading, if any, or (ii) if the Common Stock is not traded on an exchange but is
quoted on NASDAQ or a successor quotation system, (1) the last sales price (if
the Common Stock is then listed as a National Market Issue under the NASD
National Market System) or (2) the mean between the closing representative bid
and asked prices (in all other cases) for the Common Stock as reported by NASDAQ
or such successor quotation system or (iii) if the Common Stock is not publicly
traded on an exchange and not quoted on NASDAQ or a successor quotation system,
the mean between the closing bid and asked prices for the Common Stock.

                  "Commission" means the Securities and Exchange Commission.

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                  "Common Stock" means the common stock, par value $1.00 per
share, of the Company.

                  "Company" has the meaning set forth in the preamble to this
Agreement.

                  "Contribution Agreement" has the meaning set forth in the
recitals to this Agreement.

                  "Demand Registration" has the meaning set forth in Section
3.1(a) hereof.

                  "Demand Registration Statement" has the meaning set forth in
Section 3.1(a) hereof.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Exchangeable LLC Units" means LLC Units which may be
exchanged for Common Stock pursuant to the LLC Agreement.

                  "Filing Date" has the meaning set forth in Section 2.1 hereof.

                  "Full Conversion Date" has the meaning set forth in Section
2.1 hereof.

                  "Holder" means any Person (including a Unitholder) who is the
record or beneficial owner of any Registrable Security or any assignee or
transferee of such Registrable Security (including assignments or transfers of
Registrable Securities to such assignees or transferees as a result of the
foreclosure on any loans secured by such Registrable Securities) unless such
Registrable Security is acquired in a sale pursuant to a registration statement
under the Securities Act or pursuant to a transaction exempt from registration
under the Securities Act, in each such case where the security sold in such
transaction may be resold without subsequent registration under the Securities
Act.

                  "Inspectors" has the meaning set forth in Section 3.1(h).

                  "Issuance Registration Statement" has the meaning set forth in
Section 2.1.

                  "LLC Agreement" means the Amended and Restated Limited
Liability Company Agreement of the Operating LLC dated as of the date of this
Agreement, as the same may be amended, modified or restated from time to time.

                  "LLC Units" has the meaning set forth in the LLC Agreement.

                  "Operating LLC" has the meaning set forth in the recitals to
this Agreement.

                  "Person" means an individual or a corporation, partnership,
limited liability company, association, trust, or any other entity or
organization, including a government or political subdivision or an agency or
instrumentality thereof.

                  "Piggyback Registration Statement" means any registration
statement of the Company in which Registrable Securities are included pursuant
to Section 3.1 hereof.

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                  "Records" has the meaning set forth in Section 3.1(h).

                  "Registration Expenses" has the meaning set forth in Section
3.4.

                  "Registrable Securities" means shares of Common Stock of the
Company issued upon exchange of Exchangeable LLC Units pursuant to the terms of
the LLC Agreement at any time owned, either of record or beneficially, by any
Holder unless and until (i) a registration statement covering such shares has
been declared effective by the Commission and the shares have been issued by the
Company to Holder upon exchange of Exchangeable LLC Units pursuant to the
effective registration statement or have been sold or transferred by Holder to
another Person pursuant to the effective registration statement, (ii) such
shares are sold pursuant to the provisions of Rule 144 under the Securities Act
(or any similar provisions then in force) ("Rule 144"), (iii) such shares are
held by a Holder who is not an affiliate of the Company within the meaning of
Rule 144 (a "Rule 144 Affiliate") and may be sold pursuant to Rule 144(k) under
the Securities Act, (iv) such shares are held by a Holder who is a Rule 144
Affiliate and all such shares may be sold pursuant to Rule 144 within a period
of three months in accordance with the volume limitations set forth in Rule
144(e)(1), or (iv) such shares have been otherwise transferred in a transaction
that would constitute a sale under the Securities Act and such shares may be
resold without subsequent registration under the Securities Act.

                  "Reinstatement Period" has the meaning set forth in Section
3.1.

                  "Resale Prospectus" has the meaning set forth in Section 3.5.

                  "Resale Registration Statement" has the meaning set forth in
Section 3.5.

                  "S-3 Expiration Date" means the date on which Form S-3 (or a
similar successor form of registration statement) is not available to the
Company for the registration of Registrable Securities pursuant to the
Securities Act.

                  "Secondary Offering Securities Holders" has the meaning set
forth in Section 3.1(b).

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Selling Holder" means a Holder who is selling Registrable
Securities pursuant to a Demand Registration Statement or a Piggyback
Registration Statement.

                  "Supplemental Rights Period" has the meaning set forth in
Section 3.1.

                  "Unitholders" has the meaning set forth in the preamble to
this Agreement.

                                ARTICLE II.
                               REGISTRATION

                  Section 2.1  Registration Statement Covering Issuance of
Common Stock. Subject to the provisions of Article III hereof, the Company will
                                           -----------
file with the Commission a registration statement on Form S-3 (the "Issuance
Registration Statement") under Rule 415

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under the Securities Act covering the issuance to Holders of shares of Common
Stock in exchange for Exchangeable LLC Units, such filing to be made within the
two (2) week period following the date (the "Filing Date") which is the later of
(i) a date which is fourteen (14) days prior to the first date on which the
Exchangeable LLC Units issued pursuant to the Contribution Agreement may be
exchanged for shares of Common Stock pursuant to the provisions of the LLC
Agreement or (ii) such other date as may be required by the Commission pursuant
to its interpretation of applicable federal securities laws and the rules and
regulations promulgated thereunder. The Company may, in its sole discretion,
also include in such Issuance Registration Statement any shares of Common Stock
to be issued in exchange for securities of HCPI/Utah, LLC, a Delaware limited
liability company. The Company shall use its reasonable efforts to cause the
Issuance Registration Statement filed with the Commission to be declared
effective by the Commission as soon as practicable following the filing, and
within sixty (60) days after filing. In the event the Company is unable to cause
the Issuance Registration Statement to be declared effective by the Commission,
then the rights of the Holders set forth in Sections 3.1 and 3.2 hereof shall
apply to Common Stock received by Holders upon exchange of the Exchangeable LLC
Units for shares of Common Stock. Notwithstanding the availability of rights
under Section 3.1 hereof, the Company shall continue to use its reasonable
efforts to cause the Issuance Registration Statement to be declared effective by
the Commission and if it shall be declared effective by the Commission, the
obligations of the Company under Section 3.1 hereof shall cease. The Company
agrees to use its reasonable efforts to keep the Issuance Registration Statement
continuously effective (a) until the earlier of (i) the S-3 Expiration Date, or
(ii) the first date (the "Full Conversion Date") on which no Exchangeable LLC
Units (other than those held by the Company) remain outstanding, and (b) during
any Reinstatement Period.

                                 ARTICLE III.
                             REGISTRATION RIGHTS

                  Section 3.1  Registration Rights if Form S-3 is Not Available.
The following provisions shall apply with respect to Registrable Securities
during the period, if any, beginning on the S-3 Expiration Date (or, if the S-3
Expiration Date shall occur before the 30th day prior to the first date on which
the Exchangeable LLC Units issued pursuant to the Contribution Agreement may be
exchanged for shares of Common Stock, beginning on such 30th prior day) and
ending on the date when the Company would no longer be obligated to maintain the
applicable registration statement in effect pursuant to the terms of Section 2.1
if the S-3 Expiration Date had not occurred (the "Supplemental Rights Period");
provided, however, that the Supplemental Rights Period shall not include any
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period following the S-3 Expiration Date and prior to the Full Conversion Date
if during that period (the "Reinstatement Period") the Company shall again be
entitled to use Form S-3 (or a similar successor form of registration statement)
for registration of the Registrable Securities. During the Supplemental Rights
Period, the Holders shall have the following rights:

                       (a)     Demand Rights. Holders may make a written demand
for registration under the Securities Act of all or part of the Registrable
Securities (a "Demand Registration"); provided, however, that (i) the Company
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shall not be obligated to effect more than one Demand Registration for Holders
in any twelve month period, and (ii) the number of Registrable Securities
proposed to be sold by the Holders making such written demand either (x) shall
be all the Registrable Securities owned by all Holders of all Registrable
Securities or

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(y) shall have an estimated market value at the time of such demand (based upon
the then market price of a share of Common Stock) of at least $1,000,000. The
Company shall file any registration statement required by this Section 3.1(a) (a
"Demand Registration Statement") with the Commission within thirty (30) days of
receipt of the requisite Holder demand and shall use its reasonable efforts to
cause the Demand Registration Statement to be declared effective by the
Commission as soon as practicable thereafter. The Company shall give written
notice of the proposed filing of the Demand Registration Statement to the
Holders of Registrable Securities and Exchangeable LLC Units as soon as
practicable (but in no event less than ten (10) days before the anticipated
filing date), and such notice shall offer such Holders the opportunity to
participate in such Demand Registration and to register such number of shares of
Registrable Securities as each such Holder may request. The Company shall use
its reasonable efforts to keep each such Demand Registration Statement
continuously effective for a period of forty five (45) days, unless the offering
pursuant to the Demand Registration Statement is an underwritten offering and
the managing underwriter requires that the Demand Registration Statement be kept
effective for a longer period of time, in which event the Company shall maintain
the effectiveness of the Demand Registration Statement for such longer period up
to one hundred twenty (120) days (such period, in each case, to be extended by
the number of days, if any, during which Holders were not permitted to make
offers or sales under the Demand Registration Statement by reason of Section 3.3
hereof). The Company may elect to include in any Demand Registration Statement
additional shares of Common Stock to be issued by the Company, subject, in the
case of an underwritten secondary Demand Registration, to cutback by the
managing underwriters. A registration shall not constitute a Demand Registration
under this Section 3.1(a) until the Demand Registration Statement has been
declared effective.

                       (b)     Piggyback Rights. If the Company at any time
during the Supplemental Rights Period proposes to file a registration statement
under the Securities Act with respect to an offering of shares of Common Stock
for its own account or for the account of any holders of shares of its Common
Stock, in each case solely for cash (other than an Issuance Registration
Statement or a registration statement (i) on Form S-8 or any successor form to
Form S-8 or in connection with any employee or director welfare, benefit or
compensation plan, (ii) in connection with an exchange offer or an offering of
securities exclusively to existing security holders of the Company or its
subsidiaries or (iii) relating to a transaction pursuant to Rule 145 of the
Securities Act), the Company shall give written notice of the proposed
registration to the record owners of Registrable Securities and Exchangeable
LLC Units at least twenty (20) days prior to the filing of the registration
statement. The Holders of Registrable Securities shall have the right to
request that all or any part of the Registrable Securities be included in the
registration by giving written notice to the Company within ten (10) days after
the giving of the foregoing notice by the Company; provided, however, (A) if
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the registration relates to an underwritten primary offering on behalf of the
Company and the managing underwriters of the offering determine in good faith
that the aggregate amount of securities of the Company which the Company,
Holders of Registrable Securities and holders of other piggyback registration
rights propose to include in the registration statement exceeds the maximum
amount of securities that could practicably be included therein, the Company
will include in the registration, up to such maximum amount, first, the
securities which the Company proposes to sell, and second, pro rata, the
Registrable Securities and the securities proposed to be included by any
holders of other piggyback registration rights, and (B) if the registration is
an underwritten secondary registration on behalf of any of the other security
holders of the Company (the "Secondary Offering Security

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Holders") and the managing underwriters determine in good faith that the
aggregate amount of securities which the Holders of Registrable Securities, the
Secondary Offering Security Holders and the holders of other piggyback
registration rights propose to include in the registration exceeds the maximum
amount of securities that could practicably be included therein, the Company
will include in the registration, up to such maximum amount, first, the
securities to be sold for the account of the Secondary Offering Security
Holders, and second, pro rata, the Registrable Securities and the securities
proposed to be included by any holders of other piggyback registration rights.
The Company shall use its commercially reasonable efforts to cause, but shall
not be obligated to cause, the managing underwriter or underwriters of a
proposed underwritten offering to permit the Registrable Securities requested to
be included in a piggyback registration to be included on the same terms and
conditions as any similar securities of the Company included therein. (It is
understood, however, that the underwriters shall have the right to terminate
entirely the participation of the Holders of Registrable Securities if the
underwriters eliminate entirely the participation in the registration of all the
other holders electing to include securities in the registration (other than the
Company and the Secondary Offering Security Holders) because it is not
practicable to include such securities in the registration.) If the registration
is not an underwritten registration, then all of the Registrable Securities
requested to be included in the registration shall be included. Registrable
Securities proposed to be registered and sold pursuant to an underwritten
offering for the account of the Holders of Registrable Securities shall be sold
to prospective underwriters selected by such Holders and approved by the Company
and on the terms and subject to the conditions of one or more underwriting
agreements negotiated between the Company, the Secondary Offering Security
Holders, the Holders of Registrable Securities and any other holders demanding
registration and the prospective underwriters. Registrable Securities need not
be included in any registration statement pursuant to this provision if in the
opinion of counsel to the Company (a copy of which opinion is delivered to the
record owners of Registrable Securities) registration under the Securities Act
is not required for public distribution of the Registrable Securities. The
Company shall have the right to terminate or withdraw any registration
initiated by it under this Section 3.1(b) prior to the effectiveness of the
registration statement whether or not any holder has elected to include any
Registrable Securities in the registration statement.

                       (c)     Company Repurchase. Upon receipt by the Company
of a registration demand pursuant to Section 3.1(a), the Company may, but will
not be obligated to, purchase for cash from any Holder so requesting
registration all, but not less than all, of the Registrable Securities which are
the subject of the request at a price per share equal to the average of the
Closing Prices of a share of Common Stock for the ten (10) trading days
immediately preceding the date of receipt by the Company of the registration
request. In the event the Company elects to purchase the Registrable Securities
which are the subject of a registration request, the Company shall notify the
Holder within five Business Days of the date of receipt of the request by the
Company, which notice shall indicate (i) that the Company will purchase for cash
the Registrable Securities held by the Holder which are the subject of the
request, (ii) the price per share, calculated in accordance with the preceding
sentence, which the Company will pay the Holder and (iii) the date upon which
the Company shall purchase the Registrable Securities, which date shall not be
later than the tenth business day after receipt of the registration request. If
the Company so elects to purchase the Registrable Securities which are the
subject of a registration request, then upon such purchase the Company shall be
relieved of its obligations under this Section 3.1 with respect to such
Registrable Securities.

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                  Section 3.2  Additional Registration Procedures. In connection
with any registration statement covering Registrable Securities filed by the
Company pursuant to Section 2.1 or 3.1 hereof:

                       (a)     Each Holder agrees to provide in a timely manner
information requested by the Company regarding the proposed distribution by that
Holder of the Registrable Securities and all other information reasonably
requested by the Company in connection with the preparation of the registration
statement covering the Registrable Securities.

                       (b)     The Company will, if requested by any of the
Holders, prior to filing a registration statement or prospectus, or any
amendment or supplement thereto in connection with any Demand Registration
Statement or Piggyback Registration Statement, furnish to each Selling Holder
and each underwriter, if any, of the Registrable Securities covered by such
registration statement or prospectus copies of such registration statement or
prospectus or any amendment or supplement thereto as proposed to be filed, and
thereafter furnish to such Selling Holder and underwriter, if any, such number
of conformed copies of such registration statement, each amendment and
supplement thereto (in each case including all exhibits thereto and documents
incorporated by reference therein), the prospectus included in such
registration statement (including each preliminary prospectus) and such other
documents as such Selling Holder or underwriter may reasonably request in order
to facilitate the disposition of the Registrable Securities owned by such
Selling Holder.

                       (c)     After the filing of the registration statement,
the Company will promptly notify each Selling Holder of Registrable Securities
covered by the registration statement of any stop order issued or threatened by
the Commission and take all reasonable actions required to prevent the entry of
such stop order or to remove it if entered.

                       (d)     In connection with any Demand Registration
Statement or Piggyback Registration Statement, the Company will use reasonable
efforts to register or qualify the Registrable Securities under such securities
or blue sky laws of those jurisdictions in the United States (where an exemption
is not available) as any Selling Holder or managing underwriter or underwriters,
if any, reasonably (in light of the Selling Holder's intended plan of
distribution) requests; provided, however, that the Company will not be required
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to (i) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this paragraph (d), (ii) subject itself
to taxation in any such jurisdiction or (iii) consent to general service of
process in any such jurisdiction.

                       (e)     In connection with any Demand Registration
Statement or Piggyback Registration Statement, the Company will enter into
customary agreements (including an underwriting agreement, if any, in customary
form) as are reasonably required in order to expedite or facilitate the
disposition of Registrable Securities pursuant to the Demand Registration
Statement or Piggyback Registration Statement. Each Selling Holder participating
in an underwritten offering shall also enter into and perform its or his
obligations under the underwriting agreement.

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                       (f)     The Company shall cause all such Registrable
Securities to be listed on each securities exchange on which similar securities
issued by the Company are then listed.

                       (g)     The Company will immediately notify each Selling
Holder of such Registrable Securities, at any time when a prospectus relating
thereto is required to be delivered under the Securities Act, of the occurrence
of an event requiring the preparation of a supplement or amendment to such
prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus will not contain an untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary to make the statement therein, in light of the circumstances then
existing, not misleading and promptly make available to each Selling Holder a
reasonable number of copies of any such supplement or amendment.

                       (h)     The Company will make available for inspection by
any Selling Holder of such Registrable Securities, any underwriter participating
in any disposition pursuant to such Registrable Securities, any underwriter
participating in any disposition pursuant to such registration statement and any
attorney, accountant or other professional retained by any such Selling Holder
or underwriter (collectively, the "Inspectors"), all financial and other
records, pertinent corporate documents and properties of the Company
(collectively, the "Records") as shall be reasonably necessary to enable them to
discharge their due diligence responsibility under the Securities Act, and cause
the Company's officers, directors and employees to supply all information
reasonably requested by any Inspectors in connection with the discharge of their
due diligence responsibility. Records which the Company determines, in good
faith, to be confidential and which it notifies the Inspectors are confidential
shall not be disclosed by the Inspectors unless the release of such Records is
ordered pursuant to a subpoena or other order from a court of competent
jurisdiction. Each Selling Holder of such Registrable Securities agrees that
information obtained by it as a result of such inspections shall be deemed
confidential and shall not be used by it as the basis for any market
transactions in the securities of the Company or its Affiliates or otherwise
disclosed by it unless and until such is made generally available to the public.
Each Selling Holder of such Registrable Securities further agrees that it will,
upon learning that disclosure of such Records is sought in a court of competent
jurisdiction, give notice to the Company and allow the Company, at its expense,
to undertake appropriate action to prevent disclosure of the Records deemed
confidential.

                       (i)     In connection with a disposition of the
Registrable Securities in which there is a participating underwriter or
underwriters, the Company will furnish to each Selling Holder and to each
underwriter, a signed counterpart, addressed to such Selling Holder or
underwriter, of (i) an opinion or opinions of counsel to the Company and (ii) a
comfort letter or comfort letters from the Company's independent public
accountants (to the extent permitted by the standards of the American Institute
of Certified Public Accountants), each in customary form and covering such
matters of the type customarily covered by opinions or comfort letters, as the
case may be, as the Holders of a majority of the Registrable Securities included
in such offering or the managing underwriter or underwriters therefor reasonably
requests.

                       (j)     The Company will otherwise use its best efforts
to comply with all applicable rules and regulations of the Commission, and make
available to its security holders, as soon as reasonably practicable, an
earnings statement covering a period of twelve (12) months,

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beginning within three (3) months after the effective date of the registration
statement, which earnings statement shall satisfy the provisions of Section
11(a) of the Securities Act and Rule 158 of the Commission promulgated
thereunder (or any successor rule or regulation hereafter adopted by the
Commission).

                  Section 3.3  Material Developments; Suspension of Offering.

                       (a)     Notwithstanding the provisions of Sections 2.1 or
3.1 hereof or any other provisions of this Agreement to the contrary, the
Company shall not be required to file a registration statement or to keep any
registration statement effective if the negotiation or consummation of a
transaction by the Company or any of its subsidiaries is pending or an event has
occurred, which negotiation, consummation or event would require additional
disclosure by the Company in the registration statement of material information
which the Company (in the judgment of management of the Company) has a bona
                                                                       ----
fide business purpose for keeping confidential and the nondisclosure of which in
----
the registration statement might cause the registration statement to fail to
comply with applicable disclosure requirements; provided, however, that the
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Company (i) will promptly notify the Holders of Registrable Securities otherwise
entitled to registration of the foregoing and (ii) may not delay, suspend or
withdraw the registration statement for such reason more than twice in any
twelve (12) month period or three times in any twenty-four (24) month period or
for more than ninety (90) days at any time. Upon receipt of any notice from the
Company of the happening of any event during the period the registration
statement is effective which is of a type specified in the preceding sentence or
as a result of which the registration statement or related prospectus contains
any untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statement therein, in
light of the circumstances under which they were made not misleading, Holders
agree that they will immediately discontinue offers and sales of the Registrable
Securities under the registration statement (until they receive copies of a
supplemental or amended prospectus that corrects the misstatements or omissions
and receive notice that any post-effective amendment has become effective). If
so directed by the Company, Holders will deliver to the Company any copies of
the prospectus covering the Registrable Securities in their possession at the
time of receipt of such notice. In the event the Company shall give notice of
the happening of an event of the kind described in this Section 3.3(a), the
Company shall extend the period during which the affected registration statement
is required to be maintained pursuant to this Agreement by the number of days
during the period from and including the date of the giving of notice pursuant
to this Section 3.3(a) to the date when the Company shall make available a
prospectus supplemented or amended to conform with the requirements of the
Securities Act.

                       (b)     If all reports required to be filed by the
Company pursuant to the Exchange Act have not been filed by the required date
without regard to any extension, or if the consummation of any business
combination by the Company has occurred or is probable for purposes of Rule 3-05
or Article 11 of Regulation S-X under the Securities Act, upon written notice
thereof by the Company to the Holders, the rights of the Holders to acquire
Registrable Securities pursuant to the Issuance Registration Statement or to
offer, sell or distribute any Registrable Securities pursuant to any Demand
Registration Statement or Piggyback Registration Statement or to require the
Company to take action with respect to the registration of any Registrable
Securities pursuant to this Agreement shall be suspended until the date on which
the

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Company has filed such reports or obtained and filed the financial
information required by Rule 3-05 or Article 11 of Regulation S-X to be included
or incorporated by reference, as applicable, in the Issuance Registration
Statement, the Demand Registration Statement or the Piggyback Registration
Statement and the Company shall notify the Holders as promptly as practicable
when such suspension is no longer required.

                  Section 3.4  Registration Expenses. In connection with any
registration statement required to be filed hereunder, the Company shall pay the
following registration expenses incurred in connection with the registration
(the "Registration Expenses"): (i) all registration and filing fees, (ii) fees
and expenses of compliance with securities or blue sky laws (including the
reasonable fees and expenses of counsel to the Company), (iii) printing
expenses, (iv) internal expenses (including, without limitation, all salaries
and expenses of its officers and employees performing legal or accounting
duties), (v) the fees and expenses incurred in connection with the listing of
the Registrable Securities on each securities exchange on which similar
securities issued by the Company are then listed, (vi) fees and disbursements of
counsel for the Company and the independent public accountants of the Company,
and (vii) the fees and expenses of any experts retained by the Company in
connection with such registration. The Holders shall be responsible for the
payment of any and all other expenses incurred by them in connection with the
registration and sale of Registrable Securities, including, without limitation,
brokerage and sales commissions, underwriting fees, discounts and commissions
attributable to the Registrable Securities, fees and disbursements of counsel
representing the Holders, and any transfer taxes relating to the sale or
disposition of the Registrable Securities.

                  Section 3.5  Indemnification by the Company. The Company
agrees to indemnify and hold harmless each Selling Holder, its officers,
directors, employees, representatives, and agents, and each Person, if any, who
controls such Selling Holder within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act from and against any and all losses,
claims, actions, damages, liabilities, costs and expenses (including, without
limitation, but subject to the provisions of Section 3.7 hereof, reasonable
attorneys' fees and disbursements caused by any untrue statement or alleged
untrue statement of a material fact contained in any Demand Registration
Statement or Piggyback Registration Statement (individually, a "Resale
Registration Statement") or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading,
or arising out of any untrue statement or alleged untrue statement of a material
fact contained in any prospectus contained in a Resale Registration Statement at
the time it became effective (a "Resale Prospectus"), or the omission or alleged
omission therefrom of a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading, except insofar as such losses, claims, damages or liabilities are
caused by any such untrue statement or omission or alleged untrue statement or
omission based upon information furnished in writing to the Company by such
Selling Holder or on such Selling Holder's behalf expressly for inclusion
therein; provided, however, that the Company will not be liable in any case to
         --------  -------
the extent that any such claim, loss, damage, liability or expense arises out of
or is based upon any untrue statement or omission contained in a Resale
Prospectus which was corrected in a supplement or amendment thereto if such
claim is brought by a purchaser of Registrable Securities from the Selling
Holder and the Selling Holder failed to deliver to such purchaser the supplement
or amendment to the Resale Prospectus in a timely manner.

                                      10

<PAGE>

                  Section 3.6  Indemnification by Holders of Registrable
Securities. Each Selling Holder of Resale Registrable Securities covered by a
Registration Statement agrees to indemnify and hold harmless the Company, its
officers, directors and agents and each Person, if any, who controls the Company
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act to the same extent as the indemnity set forth in Section 3.5
from the Company to Selling Holders, but only with respect to information
relating to such Selling Holder furnished in writing by such Selling Holder or
on such Selling Holder's behalf expressly for use in any Resale Registration
Statement or Resale Prospectus or any amendment or supplement thereto. Each
Holder also agrees to indemnify and hold harmless underwriters of the
Registrable Securities, their officers and directors and each Person who
controls such underwriters within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act on substantially the same basis as that of
the indemnification of the Company provided in this Section 3.6.

                  Section 3.7  Conduct of Indemnification Proceedings. Each
indemnified party shall give reasonably prompt notice to each indemnifying party
of any action or proceeding commenced against it in respect of which indemnity
may be sought hereunder, but failure to so notify the indemnifying party (i)
shall not relieve it from any liability which it may have under the indemnity
agreement provided in Section 3.5 or 3.6 above, unless and to the extent it did
not otherwise learn of such action and the lack of notice by the indemnified
party results in the forfeiture by the indemnifying party of substantial rights
and defenses and (ii) shall not, in any event, relieve the indemnifying party
from any obligations to the indemnified party other than the indemnification
obligation provided under Section 3.5 or 3.6 above. If the indemnifying party so
elects within a reasonable time after receipt of notice, the indemnifying party
may assume the defense of the action or proceeding at the indemnifying party's
own expense with counsel chosen by the indemnifying party and approved by the
indemnified party, which approval shall not be unreasonably withheld; provided,
                                                                      --------
however, that if the defendants in any such action or proceeding include both
-------
the indemnified party and the indemnifying party and the indemnified party
reasonably determines based upon advice of legal counsel experienced in such
matters, that there may be legal defenses available to it which are different
from or in addition to those available to the indemnifying party, then the
indemnified party shall be entitled to separate counsel at the indemnifying
party's expense, which counsel shall be chosen by the indemnified party and
approved by the indemnifying party, which approval shall not be unreasonably
withheld; provided further, that it is understood that the indemnifying party;
          -------- -------
shall not be liable for the fees, charges and disbursements of more than one
separate firm. If the indemnifying party does not assume the defense, after
having received the notice referred to in the first sentence of this Section,
the indemnifying party will pay the reasonable fees and expenses of counsel for
the indemnified party; in that event, however, the indemnifying party will not
be liable for any settlement effected without the written consent of the
indemnifying party. If an indemnifying party assumes the defense of an action or
proceeding in accordance with this Section, the indemnifying party shall not be
liable for any fees and expenses of counsel for the indemnified party incurred
thereafter in connection with that action or proceeding except as set forth in
the proviso in the second sentence of this Section 3.7. Unless and until a final
judgment is rendered that an indemnified party is not entitled to the costs of
defense under the provisions of this Section, the indemnifying party shall
reimburse, promptly as they are incurred, the indemnified party's costs of
defense.

                                      11

<PAGE>

                  Section 3.8  Contribution.

                       (a)     If the indemnification provided for in Section
3.5 or 3.6 hereof is unavailable to an indemnified party or insufficient in
respect of any losses, claims, damages or liabilities referred to therein, then
each indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by indemnified party as a result of
such losses, claims, damages or liabilities as between the Company on the one
hand and each Selling Holder on the other, in such proportion as is appropriate
to reflect the relative fault of the Company and of each Selling Holder in
connection with such statements or omissions which resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the Company on the one hand and of each
Selling Holder on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company or such Selling Holder, and the Company's and the
Selling Holder's relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

                       (b)     The Company and the Selling Holders agree that it
would not be just and equitable if contribution pursuant to this Section 3.8
were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to in
Section 3.8(a). The amount paid or payable by an indemnifying party as a result
of the losses, claims, damages or liabilities referred to in Sections 3.5 and
3.6 hereof shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by the indemnified party
in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 3.8, no Selling Holder shall be
required to contribute any amount in excess of the amount by which the total
price at which the securities of such Selling Holder were offered to the public
exceeds the amount of any damages which such Selling Holder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

                  Section 3.9  Participation in Underwritten Registrations. No
Holder may participate in any underwritten registration hereunder unless the
Holder (a) agrees to sell his or its Registrable Securities on the basis
provided in the applicable underwriting arrangements and (b) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents in customary form as reasonably required under
the terms of such underwriting arrangements.

                  Section 3.10  Holdback Agreements. Each Holder whose
securities are included in a Demand Registration Statement or Piggyback
Registration Statement agrees not to effect any sale or distribution of the
securities registered or any similar security of the Company, or any securities
convertible into or exchangeable or exercisable for such securities, including a
sale pursuant to Rule 144 under the Securities Act, during the fourteen (14)
days prior to, and during the ninety (90)-day period beginning on, the effective
date of such registration statement (except as part of such registration), if
and to the extent requested in writing by the Company in

                                      12

<PAGE>

the case of a non-underwritten public offering or if and to the extent requested
in writing by the managing underwriter or underwriters in the case of an
underwritten public offering.

                                 ARTICLE IV.
                                MISCELLANEOUS

                  Section 4.1  Specific Performance. The parties hereto
acknowledge that there would be no adequate remedy at law if any party fails to
perform any of its obligations hereunder, and accordingly agree that each party,
in addition to any other remedy to which it may be entitled at law or in equity,
shall be entitled to compel specific performance of the obligation of any other
party under this Agreement in accordance with the terms and conditions of this
Agreement in any court of the United States or any State thereof having
jurisdiction,

                  Section 4.2 Amendments and Waivers. The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given without the prior written consent of the
Company and the Holders holding at least two-thirds (2/3rds) of the then
outstanding Registrable Securities and Exchangeable LLC Units. No failure or
delay by any party to insist upon the strict performance of any covenant, duty,
agreement or condition of this Agreement or to exercise any right or remedy
consequent upon any breach thereof shall constitute a waiver of any such breach
or any other covenant, duty, agreement or condition.

                  Section 4.3  Notices. Any notice required or permitted to be
given under this Agreement shall be in writing and shall be deemed to have been
given (a) when delivered by hand or upon transmission by telecopier or similar
facsimile transmission device, (b) on the date delivered by a courier service,
or (c) on the third Business Day after mailing by registered or certified mail,
postage prepaid, return receipt requested, in any case addressed as follows:

                       (a)     if to any Holder, to c/o The Boyer Company, L.C.,
127 South 500 East, Suite 310, Salt Lake City, Utah 84102, or to such other
address and to such other Persons as the Holders may hereafter notify the
Company in writing; and

                       (b)     if to the Company, to Health Care Property
Investors, Inc., 4675 MacArthur Court, Suite 900, Newport Beach, California
92660 (Attention: Edward J. Henning), or to such other address as the Company
may hereafter specify in writing.

                  Section 4.4  Successors and Assigns. The rights and
obligations of the Holders under this Agreement shall not be assignable by any
Holder to any Person that is not a Holder. This Agreement shall be binding upon
the parties hereto, the Holders and their respective successors and assigns
(including lenders in foreclosure).

                  Section 4.5  Counterparts. This Agreement may be executed in
any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

                                      13

<PAGE>

                  Section 4.6  Governing Law. This Agreement shall be governed
by and construed in accordance with the internal laws of the State of California
without regard to the conflicts of law provisions thereof.

                  Section 4.7  Severability. In the event that any one or more
of the provisions contained herein, or the application thereof in any
circumstance, is held invalid, illegal or unenforceable, the validity, legality
and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

                  Section 4.8  Entire Agreement. This Agreement is intended by
the parties as a final expression of their agreement and intended to be a
complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter contained herein. This Agreement
supersedes all prior agreements and understandings between the parties with
respect to the subject matter of this Agreement.

                  Section 4.9  Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning of any provision of this Agreement.

                  Section 4.10 Selling Holders Become Party to this Agreement.
By asserting or participating in the benefits of registration of Registrable
Securities pursuant to this Agreement, each Holder agrees that it or he will be
deemed a party to this Agreement and be bound by each of its terms.

                  Section 4.11 Rule 144. The Company covenants that it will file
any reports required to be filed by it under the Securities Act and the Exchange
Act to the extent required from time to time to enable Holders to sell
Registrable Securities without registration under the Securities Act within the
limitations of the exemptions provided by (a) Rule 144 under the Securities Act,
as such Rule may be amended from time to time, or (b) any similar rule or
regulation hereafter adopted by the Commission. Upon the request of any Holder,
the Company will deliver to such Holder a written statement as to whether it has
filed such reports.

                                      14

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first written above.

                                        HEALTH CARE PROPERTY INVESTORS, INC.,
                                        a Maryland corporation

                                        By:  ________________________________
                                        Name:  Edward J. Henning
                                        Title: Senior Vice President, General
                                               Counsel and Corporate Secretary

                                        UNITHOLDERS

                                        THE BOYER COMPANY, L.C.,
                                        a Utah limited liability company, in
                                        its capacity as Manager of each
                                        limited liability company named below
                                        as a "Unitholder" and in its capacity
                                        as General Partner of each limited
                                        partnership named below as a
                                        "Unitholder"

                                        By:  ________________________________
                                        Name:  Kem C. Gardner
                                        Title: President and Manager

<TABLE>
<CAPTION>
Property                 Unitholder
--------                 ----------
<S>                      <C>
[OLD MILL II]            BOYER OLD MILL II, L.C., a Utah limited liability company

[ARUP I/ARUP II]         BOYER-RESEARCH PARK ASSOCIATES, LTD., a Utah limited partnership

[ARUP III]               BOYER RESEARCH PARK ASSOCIATES VII, L.C., a Utah limited liability company
                         CHIMNEY RIDGE, L.C., a Utah limited liability company

[MYRIAD I/MYRIAD III]    BOYER-FOOTHILL ASSOCIATES, LTD., a Utah limited partnership

[MYRIAD II]              BOYER RESEARCH PARK ASSOCIATES VI, L.C., a Utah limited liability company

[STANSBURY]              BOYER STANSBURY II, L.C., a Utah limited liability company

[RANCHO VISTOSO]         BOYER RANCHO VISTOSO, L.C., a Utah limited liability company

[WESLEY]                 BOYER-ALTA VIEW ASSOCIATES, LTD., a Utah limited partnership

[HCA SUPPLY]             BOYER KAYSVILLE ASSOCIATES, L.C., a Utah limited liability company

[TATUM                   BOYER TATUM HIGHLANDS DENTAL CLINIC, L.C., a Utah limited liability company
DENTAL]
</TABLE>

                                      15

<PAGE>

<TABLE>
<S>                      <C>
[LANSING]                AMARILLO BELL ASSOCIATES, a Utah general partnership

[EVANSTON]               BOYER EVANSTON, L.C., a Utah limited liability company

[DENVER I/               BOYER DENVER MEDICAL, L.C., a Utah limited liability company
DENVER II]
[NORTHWEST II]           BOYER NORTHWEST MEDICAL CENTER TWO, L.C., a Utah limited liability company

[CALDWELL]               BOYER CALDWELL MEDICAL, L.C., a Utah limited liability company
</TABLE>

                                      16<PAGE>

                                                                   EXHIBIT 10.7
                      HEALTH CARE PROPERTY INVESTORS, INC.
                            2000 STOCK INCENTIVE PLAN

1.       PURPOSE OF THE PLAN.

         The purpose of the 2000 Stock Incentive Plan (the "Plan") of Health
Care Property Investors, Inc. (the "Company") is to promote the interests of
the Company and its stockholders by strengthening the Company's ability to
attract, motivate and retain employees, consultants and directors of training,
experience and ability, and to provide a means to encourage stock ownership
and proprietary interest in the Company to valued employees, consultants and
directors of the Company upon whose judgment, initiative, and efforts the
continued financial success and growth of the business of the Company largely
depend. The Plan is a new plan of the Company which also amends, restates,
merges and continues the Second Amended and Restated Directors Stock Incentive
Plan of Health Care Property Investors, Inc. (the "Directors Plan"). Upon the
approval of the Company's stockholders of this Plan, the Directors Plan will
terminate and be of no further force or effect. Any outstanding awards under
the Directors Plan as of the date of the stockholders' approval of the Plan
shall be administered as herein stated and such awards may be reissued under
the Plan if they are subsequently forfeited or expire before being exercised.

2.       DEFINITIONS.

         (a)     "Board" means the Board of Directors of the Company.

         (b)     "Cash Based Award" means an award, as described in Section
7(g), that, if paid, must be paid in cash and that are neither denominated in
nor have a value derived from the value of, nor an exercise or conversion
privilege at a price related to, shares of Common Stock.

         (c)     "Code" means the Internal Revenue Code of 1986, as amended.

         (d)     "Committee" means the Compensation Committee of the Board (or
another committee of the Board assuming the functions of the Committee under
this Plan).

         (e)     "Common Stock" means the $1.00 par value Common Stock of the
Company.

         (f)     "Company" means Health Care Property Investors, Inc.

         (g)     "Consultant" means any consultant or adviser if (i) the
consultant or adviser renders bona fide services to the Company; (ii) the
services rendered by the consultant or adviser are not in connection with the
offer or sale of securities in a capital-raising transaction and do not
directly or indirectly promote or maintain a market for the Company's
securities;

<PAGE>

and (iii) the consultant or adviser is a natural person who has
contracted directly with the Company to render such services.

         (h)     "Date of Grant" means with respect to the Special Option,
January 4, 2000 and with respect to any other Incentive Award granted to
Directors, the last Thursday of April of each year (beginning April 28, 1997).

         (i)     "Director" means a member of the Board who is not an Employee.

         (j)     "Directors Plan" means the Second Amended and Restated
Directors Stock Incentive Plan.

         (k)     "Disability" means the total and permanent incapacity of an
Employee or Director, due to physical impairment or legally established mental
incompetence, to perform the usual duties of an Employee or a member of the
Board, as applicable, which disability shall be determined on the basis of (i)
medical evidence by a licensed physician designated by the Company or (ii)
evidence that the Employee or Director has become entitled to receive primary
benefits as a disabled employee under the Social Security Act in effect on the
date of such disability.

         (l)     "Dividend Equivalents" means the right, under such terms as
are determined in the discretion of the Committee, to receive the equivalent
value (in cash or Common Stock) of dividends paid on Common Stock, awarded
pursuant to Section 7(e).

         (m)     "Effective Date" means March 23, 2000.

         (n)     "Eligible Person" means any Employee, Consultant or Director.

         (o)     "Employee" means any officer or other employee (as defined in
accordance with Section 3401(c) of the Code) of the Company, or of any of its
present or future parent or subsidiary corporations.

         (p)     "Fair Market Value" means for a share of Common Stock as of a
given date shall be the closing price of a share of Common Stock on the
principal exchange on which shares of Common Stock are then trading, if any
(or as reported on any composite index which includes such principal
exchange), on such date, or if shares were not traded on such date, then on
the next preceding date on which a trade occurred.

         (q)     "Incentive Award" means an Option, Dividend Equivalent,
Incentive Stock Award, or Cash Based Award granted under the Plan.

         (r)     "Incentive Stock Award" means a right to the grant or
purchase, at a price determined by the Committee, of Common Stock of the
Company which is nontransferable and

                                      2

<PAGE>

subject to substantial risk of forfeiture until specific conditions are met.
Conditions may be based on continuing employment or attainment of performance
goals which are related to one or more of the Performance Criteria or a
combination thereof.

         (s)     "NAREIT" means The National Association of Real Estate
Investment Trusts (or successor thereto).

         (t)     "NAREIT Total Return" means the average Total Return for the
healthcare equity segment as published in the NAREIT Performance Indices by
NAREIT.

         (u)     "Option" means a nonqualified or nonstatutory stock option
and with respect to grants made to Directors, also includes a Special Option,
as defined in Section 9(a)(i).

         (v)     "Participant" means any Eligible Person selected to
participate in an Incentive Award pursuant to Section 5(a).

         (w)     "Performance Criteria" means the following business criteria
with respect to the Company, any subsidiary or any division or operating unit:
(i) net income, (ii) pre-tax income, (iii) operating income, (iv) cash flow,
(v) earnings per share, (vi) return on equity, (vii) return on invested
capital or assets, (viii) cost reductions or savings, (ix) funds from
operations, (x) appreciation in the fair market value of Common Stock and (xi)
earnings before any one or more of the following items: interest, taxes,
depreciation or amortization.

         (x)     "Permissible Termination" means a Director's (i) death, (ii)
Disability, (iii) removal from the Board without cause (not including a
failure to be re-elected) or (iv) Retirement from the Board.

         (y)     "Plan" means the 2000 Stock Incentive Plan as set forth
herein, which may be further amended from time to time.

         (z)     "Retirement" means the Participant (i) reached age sixty five
and completed five years of service as an Employee or a Board member or (ii)
reached the age of sixty and completed fifteen years of service as an Employee
or a Board member.

         (aa)    "Section 162(m) Participant" means any key Employee
designated by the Committee as a key Employee whose compensation for the
fiscal year in which the key Employee is so designated or a future fiscal year
may be subject to the limit on deductible compensation imposed by Section
162(m) of the Code.

         (bb)    "Total Return" means for any person for any calendar year the
sum of (X) the per share Fair Market Value as of December 31 of such year
minus the per share Fair Market Value of the Common Stock as of January 1 of
such year and (Y) the aggregate dividends paid to stockholders during such
calendar year, divided by (Z) the per share Fair Market Value as

                                      3

<PAGE>

of January 1 of such year, as such definition may be amended by NAREIT.

3.       SHARES OF COMMON STOCK SUBJECT TO THE PLAN.

         (a)     Subject to the provisions of Section 3(e) and Section 10 of
the Plan, the number of shares of Common Stock that may be issued or
transferred or exercised pursuant to Incentive Awards under the Plan after the
Effective Date shall not exceed 2,500,000 shares, plus the number of shares
authorized and available for issuance under the Directors Plan as of the date
of the stockholders' approval of the Plan; provided, however, that of the
authorized number of shares under the Plan, the number of shares that may be
issued or transferred or exercised pursuant to Incentive Stock Awards or
Dividend Equivalents under the Plan after the Effective Date shall not exceed
500,000 shares.

         (b)     Subject to the provisions of Section 10, the maximum number
of shares of Common Stock with respect to which options or rights may be
granted to any Participant during any one calendar year is 750,000 shares (the
"Award Limit"). To the extent required by Section 162(m) of the Code, shares
subject to Options which are canceled continue to be counted against the Award
Limit.

         (c)     The shares of Common Stock to be delivered under the Plan
shall be made available, at the discretion of the Board or the Committee,
either from authorized but unissued shares of Common Stock or from previously
issued shares of Common Stock reacquired by the Company, including shares
purchased on the open market.

         (d)     If any Incentive Award expires or is canceled without having
been fully exercised, or is exercised in whole or in part for cash as
permitted by this Plan, the number of shares subject to such Incentive Award
or other right but as to which such Incentive Award was not exercised prior to
its expiration, cancellation or exercise may again be optioned, granted or
awarded hereunder, subject to the limitations of Sections 3(a) and 3(b).
Furthermore, any shares subject to Incentive Awards which are adjusted
pursuant to Section 10 and become exercisable with respect to shares of stock
of another corporation shall be considered cancelled and may again be
optioned, granted or awarded hereunder, subject to the limitations of Sections
3(a) and 3(b). Shares of Common Stock which are delivered by the Participant
or withheld by the Company upon the exercise of an Incentive Award, in payment
of the exercise price thereof, may again be optioned, granted or awarded
hereunder, subject to the limitations of Sections 3(a) and 3(b). If any
Incentive Award is forfeited or repurchased by the Company, such share may
again be optioned, granted or awarded hereunder, subject to the limitations of
Section 3(a) and 3(b).

4.       ADMINISTRATION OF THE PLAN.

         (a)     The Plan shall be administered by the Committee. The Committee
shall consist

                                      4

<PAGE>

solely of two members appointed by and holding office at the pleasure of the
Board, each of whom is both an "outside director" for purposes of Section
162(m) of the Code and a "non-employee director" as defined by Rule 16b-3
under the Securities Exchange Act of 1934 ("Rule 16b-3"). The Committee may
include more than two members appointed by the Board so long as such
additional members are "outside directors" for purposes of Section 162(m) of
the Code and are a "non-employee director" as defined by Rule 16b-3 or, if not
a "non-employee director" at the time of any Incentive Award grant, the grant
of an Incentive Award must otherwise satisfy an exemption under Rule 16b-3.
Committee members may resign at any time by delivering written notice to the
Board. Vacancies in the Committee may be filled by the Board.

         (b)     The Committee has and may exercise such powers and authority
of the Board as may be necessary or appropriate for the Committee to carry out
its functions as described in the Plan. The Committee has authority in its
discretion to determine the Eligible Persons to whom, and the time or times at
which, Incentive Awards may be granted and the number of shares subject to
each Incentive Award. The Committee also has authority to interpret the Plan,
and to determine the terms and provisions of the respective Incentive Awards
agreements and to make all other determinations necessary or advisable for
Plan administration. The Committee has authority to prescribe, amend, and
rescind rules and regulations relating to the Plan. All interpretations,
determinations, and actions by the Committee shall be final, conclusive, and
binding upon all parties.

         (c)     No member of the Board or the Committee shall be liable for
any action or determination made in good faith by the Board or the Committee
with respect to the Plan or any Incentive Award under it.

         (d)     If NAREIT amends its definition of Total Return or the NAREIT
Total Return is no longer available, the Committee may redefine Total Return
and NAREIT Total Return to correspond to such amended definition or to replace
such definition.

5.       ELIGIBILITY.

         (a)     Any Employee or Consultant, who has been determined by the
Committee to be a key Employee or Consultant, and any Director is eligible to
receive Incentive Awards under the Plan. The Committee has authority, in its
sole discretion, to determine and designate from time to time those Eligible
Persons who are to be granted Incentive Awards, and the type and amount of
Incentive Award to be granted.

         (b)     Each Incentive Award shall be evidenced by a written
instrument and may include any other terms and conditions consistent with the
Plan, as the Committee may determine. If grants of Incentive Awards, at the
discretion of the Committee, are intended to qualify as performance-based
compensation as described in Section 162(m)(4)(C) of the Code, the award
agreements shall contain such terms and conditions as may be necessary to meet
the

                                      5

<PAGE>

applicable provisions of Section 162(m) of the Code.

6.       PROVISIONS APPLICABLE TO SECTION 162(M) PARTICIPANTS

         (a)     The Committee, in its discretion, may determine whether an
Incentive Award is to qualify as performance-based compensation as described
in Section 162(m)(4)(C) of the Code.

         (b)     Notwithstanding anything in the Plan to the contrary, the
Committee may grant an Incentive Award to a Section 162(m) Participant,
including Incentive Stock Awards, Dividend Equivalents, and Cash Based Awards,
which vests or becomes exercisable or payable upon the attainment of
performance goals which are related to one or more of the Performance Criteria.

         (c)     To the extent necessary to comply with the performance-based
compensation requirements of Section 162(m)(4)(C) of the Code, with respect to
any Incentive Award granted under Section 7 or Section 8 which may be granted
to one or more Section 162(m) Participants, no later than ninety (90) days
following the commencement of any fiscal year in question or any other
designated fiscal period or period of service (or such other time as may be
required or permitted by Section 162(m) of the Code), the Committee shall, in
writing, (i) designate one or more Section 162(m) Participants, (ii) select
the Performance Criteria applicable to the fiscal year or other designated
fiscal period or period of service, (iii) establish the various performance
targets, in terms of an objective formula or standard, and amounts of such
Incentive Awards, as applicable, which may be earned for such fiscal year or
other designated fiscal period or period of service and (iv) specify the
relationship between Performance Criteria and the performance targets and the
amounts of such Incentive Awards, as applicable, to be earned by each Section
162(m) Participant for such fiscal year or other designated fiscal period or
period of service.  Following the completion of each fiscal year or other
designated fiscal period or period of service, the Committee shall certify in
writing whether the applicable performance targets have been achieved for such
fiscal year or other designated fiscal period or period of service. In
determining the amount earned by a Section 162(m) Participant, the Committee
shall have the right to reduce (but not to increase) the amount payable at a
given level of performance to take into account additional factors that the
Committee may deem relevant to the assessment of individual or corporate
performance for the fiscal year or other designated fiscal period or period of
service.

         (d)     Furthermore, notwithstanding any other provision of the Plan,
any Incentive Award which is granted to a Section 162(m) Participant and is
intended to qualify as performance-based compensation as described in Section
162(m)(4)(C) of the Code shall be subject to any additional limitations set
forth in Section 162(m) of the Code (including any amendment to Section 162(m)
of the Code) or any regulations or rulings issued thereunder that are
requirements for qualification as performance-based compensation as described
in Section 162(m)(4)(C) of the Code, and the Plan shall be deemed amended to
the extent necessary to

                                      6

<PAGE>

conform to such requirements.

7.       TERMS AND CONDITIONS OF STOCK OPTIONS, DIVIDEND EQUIVALENTS AND CASH
BASED AWARDS.

         (a)     The purchase price of Common Stock under each Option shall be
determined by the Committee, and may not be less than 100% of the Fair Market
Value of the Common Stock on the date of the grant.

         (b)     Options may be exercised as determined by the Committee but
in no event after ten years from the date of grant; provided, however, that in
the event of the Participant's Retirement (or if the Participant retires with
the consent of the Company or any subsidiary thereof at an earlier age), death
or Disability while employed by the Company, all Options, right to credit or
credits for Dividend Equivalents and Cash Based Awards then outstanding under
the Plan shall be fully vested and immediately exercisable or immediately
payable.

         (c)     Except as set forth below, upon the exercise of an Option,
the purchase price shall be payable in full in cash, or, in the discretion of
the Committee, by the assignment and delivery to the Company of shares of
Common Stock owned by the optionee (or issuable to the Participant upon
exercise of the Option); or in the discretion of the Committee, by a
promissory note secured by shares of Common Stock bearing interest at a rate
determined by the Committee but not less than the minimum rate permitted by
the Internal Revenue Service; or by a combination of any of the above. Any
shares so assigned and delivered to the Company in payment or partial payment
of the purchase price shall be valued at their Fair Market Value on the
exercise date. The Committee may, in its discretion and upon the request of
the optionee, issue shares of Common Stock upon the exercise of an Option
directly to a brokerage firm or firms to be selected by the Committee, without
payment of the purchase price by the optionee but upon delivery of an
irrevocable guarantee by such brokerage firm or firms of the payment of such
purchase price. No payment by an assignment of shares, by a promissory note or
by any combination thereof, or by the guarantee of a brokerage firm or firms
as described above, shall be allowed unless such payments are allowed under
applicable requirements of Federal and state tax, securities and other laws,
rules and regulations and by any regulatory authority having jurisdiction.

         (d)     The Committee may, in its sole discretion, authorize all or a
portion of the Options to be granted to an optionee to be on terms which
permit transfer by such optionee to (i) any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece,
nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, sister-in-law, including adoptive relationships, any person
sharing the household (other than a tenant or employee) of the optionee
("Family Members"), (ii) a trust in which such Family Members have more than
fifty percent of the beneficial interest, (iii) a foundation in which such
Family Members or the optionee control the management of assets, or (iv) any
other entity in which such Family Members or the optionee own more than fifty
percent of the

                                      7

<PAGE>

voting interests, provided that (w) there may be no consideration for any such
transfer, (x) the stock option agreement pursuant to which such options are
granted must expressly provide for transferability in a manner consisted with
this Section, (y) the Committee, in its sole discretion, shall approve any
transfer in advance, and (z) subsequent transfers of transferred options shall
be prohibited except by will or the laws of descent and distribution.
Following transfer, any such options shall continue to be subject to the same
terms and conditions as were applicable immediately prior to transfer. The
events of termination of employment of Section 14(d) shall continue to be
applied with respect to the original optionee, following which the options
shall be exercisable by the transferee only to the extent, and for the periods
specified in Section 14.

         (e)     The right to be credited with Dividend Equivalents may be
granted to a Participant in the discretion of the Committee. The Committee
shall determine (i) the number of shares of Common Stock subject to the
Dividend Equivalents, (ii) the period during which Dividend Equivalents shall
be credited to the Participant's account, (iii) the timing of payment to the
Participant of Dividend Equivalents credited to the Participant's account and
(iv) any other limitations and conditions as it deems appropriate with respect
to the crediting and payment of Dividend Equivalents. In addition, the
Committee, in its discretion, may determine whether a right to be credited
with Dividend Equivalents is to qualify as performance-based compensation as
described in Section 162(m)(4)(C) of the Code.

         (f)     No fractional shares shall be issued pursuant to the exercise
of an Option or the determination of Dividend Equivalents nor shall any cash
payment be made in lieu of fractional shares.

         (g)     Cash Based Awards may be granted to Participants at the
discretion of the Committee, which provide Participants with the opportunity
to earn a cash payment based upon the level of performance of the Company
relative to one or more Performance Criteria established by the Committee for
an award cycle as determined by the Committee, consisting of any period of
time up to five years.  For each award cycle, the Committee shall determine
the amount of the Cash Based Award, the Performance Criteria, the performance
target levels as to each of the Performance Criteria and the weighting of the
Performance Criteria, if more than one Performance Criteria is applicable.
Cash Based Awards to Section 162(m) Participants that are either granted or
become vested, exercisable or payable based on attainment of one or more
Performance Criteria shall only be granted as performance-based compensation
under Section 162(m)(4)(C)of the Code. Cash Based Awards may be subject to
any condition imposed by the Committee, including a reservation of the right
to revoke a Cash Based Award at any time before it is paid.

         (h)     An Option held by, those rights to credits of Dividend
Equivalents granted to, and Dividend Equivalents credited to a person who was
an Eligible Person at the time such Option and right to credits or credits of
Dividend Equivalents were granted shall expire immediately if and when the
Participant ceases to be an Eligible Person, except as follows:

                                      8

<PAGE>

                 (i)     If the employment or service of a Participant is
         terminated by the Company or any subsidiary thereof other than for
         cause, for which the Company shall be the sole judge, then the Options
         and/or the right to credits or credits of Dividend Equivalents shall
         expire eight months thereafter unless by their terms they expire
         sooner. During said period, the Options may be exercised and credits
         of Dividend Equivalents made in accordance with their terms, but only
         to the extent allowable on the date of termination of employment.

                 (ii)    In the event of the Participant's Retirement or if
         the Participant retires with the consent of the Company or any
         subsidiary thereof at an earlier age, the Options and/or right to
         credits or credits of Dividend Equivalents of the Participant shall
         expire three years thereafter unless by their terms they expire
         sooner. During said period, the Options may be exercised and credits
         of Dividend Equivalents made in accordance with their terms, but only
         to the extent allowable on the date of Retirement, subject to the
         accelerated vesting of such Options and/or rights to credits or
         credits of Dividend Equivalents on the date of Retirement.

                 (iii)   In the event of the Participant's death or Disability
         while employed by the Company, the Options and/or right to credits or
         credits of Dividend Equivalents of the Participant shall expire three
         years after the date of death or Disability of the Participant unless
         by their terms they expire sooner. In the event of the Participant's
         death or Disability within the eight months referred to in
         subparagraph (i) above, the Options and/or right to credits or credits
         of Dividend Equivalents shall expire one year after the date of death
         or Disability of the Participant unless by their terms they expire
         sooner. In the event of the Participant's death or Disability within
         the three-year period referred to in subparagraph (ii) above, the
         Options and/or right to credits or credits of Dividend Equivalents
         shall expire upon the later of three years after Retirement or one
         year after the date of death or Disability of the Participant unless
         by their terms they expire sooner.

         (i)     The Committee may in its sole discretion determine, with
respect to an Incentive Award, that any Participant who is on leave of absence
for any reason shall be considered as still in the employ of the Company,
provided that rights to such Incentive Award during a leave of absence shall
be limited to the extent to which such right was earned or vested at the
commencement of such leave of absence.

8.       TERMS AND CONDITIONS OF INCENTIVE STOCK AWARDS.

         (a)     All shares of Incentive Stock Awards granted or sold pursuant
to the Plan shall be subject to the following conditions:

                 (i)     The shares may not be sold, transferred or otherwise
         alienated or

                                      9

<PAGE>

         hypothecated until the restrictions are removed or expire.

                 (ii)    The Committee may require the Participant to enter
         into an agreement providing that the certificates representing
         Incentive Stock Awards granted or sold pursuant to the Plan shall
         remain in the physical custody of the Company until all restrictions
         are removed or expire.

                 (iii)   Each certificate representing Incentive Stock Awards
         granted pursuant to the Plan shall bear a legend making appropriate
         reference to the restrictions imposed.

                 (iv)    The Committee may impose other conditions on any
         shares granted or sold pursuant to the Plan as it may deem advisable,
         including, without limitation, restrictions under the Securities Act
         of 1933, as amended, under the requirements of any stock exchange upon
         which such shares or shares of the same class are then listed and
         under any blue sky or other securities laws applicable to such shares.

         (b)     The restrictions imposed under subparagraph (a) above upon
Incentive Stock Awards shall lapse in accordance with a schedule or other
conditions as determined by the Committee; provided, however, in the event of
the Participant's Retirement (or if the Participant retires with the consent
of the Company or any subsidiary thereof at an earlier age), death or
Disability while employed by the Company, all Incentive Stock Awards then
outstanding under the Plan shall be fully vested and immediately exercisable
and all restrictions shall immediately cease.

         (c)     The Committee, in its discretion, may determine whether an
Incentive Stock Award is to qualify as performance-based compensation as
described in Section 162(m)(4)(C) of the Code.

         (d)     Subject to the provisions of subparagraph (a) above, the
holder thereof shall have all rights of a stockholder with respect to the
Incentive Stock Awards granted or sold, including the right to vote the shares
and receive all dividends and other distributions paid or made with respect
thereto.

         (e)     Except as set forth below, the purchase price (if any) for
shares of Incentive Stock Awards shall be payable in full in cash; or by the
assignment and delivery to the Company of shares of Common Stock owned by the
holder of the Incentive Stock Awards; or by a promissory note secured by
shares of Common Stock bearing interest at a rate equal to the minimum rate
permitted by the Internal Revenue Service; or by a combination of any of the
above. Any shares so assigned and delivered to the Company in payment or
partial payment of the purchase price shall be valued at their Fair Market
Value on the purchase date.  The Committee may, in its discretion and upon the
request of the holder, issue shares of the Incentive Stock Award directly to a
brokerage firm or firms to be selected by the Committee, without payment of
the purchase price by the holder but upon delivery of an irrevocable

                                      10

<PAGE>

guarantee by such brokerage firm or firms of the payment of such purchase
price. No payment by an assignment of shares, by a promissory note or by any
combination thereof, or by the guarantee of a brokerage firm or firms as
described above, shall be allowed unless such payments are allowed under
applicable requirements of Federal and state tax, securities and other laws,
rules and regulations and by any regulatory authority having jurisdiction.

9.       TERMS AND CONDITIONS OF INCENTIVE AWARDS TO DIRECTORS

         (a)     With respect to grants of Options to Directors:

                 (i)     Each Director who was serving in such capacity as of
         January 4, 2000 (a "Year 2000 Director") was granted on
         January 4, 2000 an Option to acquire 21,000 shares of Common Stock
         (the "Special Option").

                 (ii)    Prior to the termination of the Plan, for each of
         year 2000, 2001 and 2002, each Year 2000 Director who is serving
         in such capacity on the applicable Date of Grant shall be granted on
         such Date of Grant:

                         (A)     400 shares of Incentive Stock Awards; and

                         (B)     If in the preceding calendar year the Total
                 Return for the Company exceeds by three percentage points the
                 NAREIT Total Return, an Option to acquire an additional 3,000
                 shares of Common Stock.

                 (iii)   Prior to the termination of the Plan, on each Date of
         Grant beginning in 2003 and thereafter, each Year 2000 Director who is
         serving in such capacity on each Date of Grant shall be granted on
         each Date of Grant beginning in 2003:

                         (A)     An Option to acquire 7,000 shares of Common
                 Stock;

                         (B)     400 shares of Incentive Stock Awards; and

                         (C)     If in the preceding calendar year the Total
                 Return for the Company exceeds by three percentage points the
                 NAREIT Total Return, an Option to acquire an additional 3,000
                 shares of Common Stock.

                 (iv)      Prior to the termination of the Plan, each Director,
         other than a Year 2000 Director, who is serving in such capacity on
         each Date of Grant shall be granted on each Date of Grant:

                         (A)     An Option to acquire 7,000 shares of Common
                 Stock;

                         (B)     400 shares of Incentive Stock Awards; and

                                      11

<PAGE>

                         (C)     If in the preceding calendar year the Total
                 Return for the Company exceeds by three percentage points the
                 NAREIT Total Return, an Option to acquire an additional 3,000
                 shares of Common Stock.

                 (v)     Each Option will be evidenced by a written instrument
         including terms and conditions consistent with the Plan, as the
         Committee may determine. The purchase price of Common Stock under each
         Option will be the Fair Market Value of the Common Stock on the Date
         of Grant. Notwithstanding any other provision to the contrary
         contained in the Plan, each Option will expire not later than ten
         years from the Date of Grant.

                 (vi)    The Special Option granted under the Plan shall be
         exercisable in the following cumulative installments: (A) the Special
         Option with respect to 7,000 shares of Common Stock shall be
         exercisable by any Year 2000 Director on the last Thursday of April,
         2001 so long as such Year 2000 Director is a member of the Board on
         the last Thursday of April, 2000, (B) the Special Option with
         respect to 7,000 shares of Common Stock shall be exercisable by any
         Year 2000 Director on the last Thursday of April, 2002 so long as such
         Year 2000 Director is a member of the Board on the last Thursday of
         April, 2001, and (C) the Special Option with respect to 7,000 shares
         of Common Stock shall be exercisable by any Year 2000 Director on the
         last Thursday of April, 2003 so long as such Year 2000 Director is a
         member of the Board on the last Thursday of April, 2002. Each Option
         granted under the Plan, other than a Special Option, may not be
         exercised for a period of one year after the Date of Grant. After an
         Option, other than a Special Option, becomes exercisable, such Option
         may be exercised with respect to all shares of Common Stock covered
         thereby during its term as provided hereunder. Notwithstanding the
         foregoing, upon a Director's Permissible Termination, all Options then
         outstanding under the Plan shall be fully vested and immediately
         exercisable.

                 (vii)   Upon the exercise of an Option, the purchase price
         will be payable in full in cash; or by the assignment and delivery to
         the Company of shares of Common Stock owned by the holder of the
         Option (or issuable to the Director upon exercise of the Option);
         or by a promissory note secured by shares of Common Stock bearing
         interest at a rate equal to the minimum rate permitted by the Internal
         Revenue Service; or by a combination of any of the above. Any shares
         so assigned and delivered to the Company in payment or partial
         payment of the purchase price will be valued at their Fair Market
         Value on the exercise date. No payment by an assignment of shares or
         by a promissory note or by any combination thereof will be allowed
         unless such payments are allowed under applicable requirements of
         Federal and state tax, securities and other laws, rules and
         regulations and by any regulatory authority having jurisdiction.

                 (viii)  Subject to subparagraph (v), each Option granted to a
         Director will

                                      12

<PAGE>

         expire at the time the Director ceases to be a Director, except as
         follows:

                         (A)     If the service of the Director is terminated
                 by the Company other than for cause, for which the Company
                 will be the sole judge, then the Option will expire eight
                 months after the date of termination unless by the Option's
                 terms it expires sooner.

                         (B)     In the event of the Director's Retirement or
                 the Director retires with the consent of the Company at an
                 earlier age, the Option will expire three years after the
                 date of termination unless by the Option's terms it
                 expires sooner.

                         (C)     In the event of the Director's death or
                 Disability while serving in such capacity, the Option will
                 expire three years after the date of death or Disability of
                 the Director unless by the Option's terms it expires sooner.
                 In the event of the Director's death or Disability within the
                 eight months referred to in subparagraph (A) above, the
                 Option will expire one year after the death or Disability of
                 the Participant unless by the Option's terms it expires
                 sooner. In the event of the Director's death or Disability
                 within the three-year period referred to in subparagraph (B)
                 above, the Option will expire upon the later of three years
                 after Retirement or one year after the date of death or
                 Disability of the Director unless by the Option's terms it
                 expires sooner.

         (b)     All shares of Incentive Stock Awards granted pursuant to the
Plan to Directors will be subject to the following conditions:

                 (i)     Each grant of 400 shares of an Incentive Stock Award
         shall vest at a rate of 100 shares per year with the first 100 shares
         beginning one year after the Date of the Grant.

                 (ii)    The unvested portion of any Incentive Stock Award
         grant shall be forfeited to the Company upon termination of a
         director's membership on the Board unless such Director's termination
         is a Permissible Termination.

                 (iii)   All Incentive Stock Awards shall become vested
         immediately upon a Director's Permissible Termination.

                 (iv)    Incentive Stock Awards may not be sold, transferred or
         otherwise alienated or hypothecated until the restrictions are removed
         or expire.

                 (v)     Each certificate representing an Incentive Stock Award
         granted pursuant to the Plan will bear a legend making appropriate
         reference to the restrictions imposed.

                                      13

<PAGE>

                 (vii)   The Committee may impose other conditions on any
         shares granted or sold pursuant to the Plan as it may deem advisable,
         including, without limitation, restrictions under the Securities Act
         of 1933, as amended, under the requirements of any stock exchange upon
         which such shares or shares of the same class are then listed and
         under any blue sky or other securities laws applicable to such shares.

                 (viii)  Unless and until any shares of an Incentive Stock
         Award are forfeited to the Company as provided in subsection (b)
         above, the holder thereof will have all rights of a stockholder with
         respect to the Incentive Stock Award granted or sold, including the
         right to vote the shares and receive all dividends and other
         distributions paid or made with respect thereto.

10.      ADJUSTMENT PROVISIONS.

         (a)     Subject to Sections 10(b), if the outstanding shares of
Common Stock of the Company are increased, decreased, or exchanged for a
different number or kind of shares or other securities, or if additional
shares or new or different shares or other securities are distributed with
respect to such shares of Common Stock or other securities, through merger,
consolidation, sale of all or substantially all the property of the Company,
reorganization, recapitalization, reclassification, stock dividend, stock
split, reverse stock split or other distribution with respect to such shares
of Common Stock or other securities, an appropriate and proportionate
adjustment may be made in (i) the maximum number and kind of shares provided
in Section 3, (ii) the number and kind of shares or other securities subject
to the then outstanding Incentive Awards, and (iii) the price for each share
or other unit of any other securities subject to then outstanding Incentive
Awards without change in the aggregate purchase price or value as to which
such Incentive Awards remain exercisable or subject to restrictions.

         (b)     Despite the provisions of Section 10(a), upon a Change in
Control (as defined below) all Incentive Awards then outstanding under the
Plan will be fully vested and exercisable and all restrictions will
immediately cease, unless provisions are made in connection with such
transaction for the continuance of the Plan and the assumption or the
substitution for such Incentive Awards of new incentive awards covering the
stock of a successor employer corporation, or a parent or subsidiary thereof,
with appropriate adjustments as to the number and kind of shares and prices.
In addition, subject to the preceding sentence with respect to grants of
Options which are outstanding on the date of a Change in Control, such
Options, to the extent then exercisable (including Options which become
exercisable by a Change in Control), shall not expire until the later of the
date specified in the Participant's stock option agreement or the third
anniversary after the date of the Participant's termination of employment or
service with the Company; provided, however, that in no event shall such
Options be exercisable more than ten (10) years from the date of grant.

                                      14

<PAGE>

                 A Change in Control shall be deemed to occur if:

                 (i) any Person (as defined in Sections 13(d) and 14(d) of the
         Securities Exchange Act of 1934, as amended (the "Exchange Act")) is
         or becomes the Beneficial Owner (as defined in Rule 13d-3 under the
         Exchange Act), directly or indirectly, of securities of the Company
         representing 25% or more of the combined voting power of the Company's
         then outstanding securities ("Outstanding Company Voting Securities");
         provided, however, that for purposes of this subsection (i), the
         following shall not constitute a Change of Control: (a) any
         acquisition directly from the Company, (b) any acquisition by the
         Company or any corporation controlled by the Company, (c) any
         acquisition by any employee benefit plan (or related trust) sponsored
         or maintained by the Company or any corporation controlled by the
         Company, (d) any acquisition by a Person of 25% of the Outstanding
         Company Voting Securities as a result of an acquisition of common
         stock of the Company by the Company which, by reducing the number
         of shares of common stock of the Company outstanding, increases the
         proportionate number of shares beneficially owned by such Person to
         25% or more of the Outstanding Company Voting Securities; provided,
         however, that if a Person shall become the beneficial owner of 25% or
         more of the Outstanding Company Voting Securities by reason of a share
         acquisition by the Company as described above and shall, after such
         share acquisition by the Company, become the beneficial owner of any
         additional shares of common stock of the Company, then such
         acquisition shall constitute a Change of Control or (e) any
         acquisition pursuant to a transaction which complies with subsection
         (iii) of this Section 9(b)

                 (ii)  during any period of two consecutive years
         (not including any period prior to the execution of this Plan),
         individuals who at the beginning of such period constitute the Board,
         and any new director (other than a director designated by a person who
         has entered into an agreement with the Company to effect a
         transaction described in Sections 9(b)(i), (ii) or (iv)) whose
         election by the Board or nomination for election by the Company's
         stockholders was approved by a vote of at least two-thirds (K) of
         the directors then still in office who either were directors at
         the beginning of the period or whose election or nomination for
         election was previously so approved (hereinafter referred to
         as "Continuing Directors"), cease for any reason to constitute at
         least a majority thereof;

                 (iii)   the consummation by the company of 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-K% 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

                                      15

<PAGE>

         (or similar transaction) in which no Person acquires more than
         25% of the combined voting power of the Company's then outstanding
         securities shall not constitute a Change in Control; or

                 (iv)    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.

         (c)     Adjustments under Section 10(a) and 10(b) shall be made by
the Committee, whose determination as to what adjustments shall be made and
the extent thereof shall be final, binding, and conclusive. No fractional
interest shall be issued under the Plan on account of any such adjustments.

         (d)     In the event of a pending or threatened takeover bid or
tender offer and pursuant to which 10% or more of the outstanding securities
of the company is acquired, whether or not deemed a tender offer under
applicable state or Federal laws, or in the event that any person makes any
filing under sections 13(d) or 14(d) of the Securities Exchange Act of 1934
with respect to the Company, the Committee may in its sole discretion, without
obtaining stockholder approval, at the time of any one or more of the
following actions to the extent permitted in Section 14 with respect to all
Eligible Persons and Participants:

                 (i)     Accelerate the exercise dates of any outstanding
         Option, make all outstanding Options or Cash Based Awards fully
         vested and exercisable, accelerate the crediting of Dividend
         Equivalents or make all credits in a Participant's account
         immediately payable;

                 (ii)    Determine that all or any portion of conditions
         associated with an Incentive Stock Award have been met;

                 (iii)   Pay cash to any or all Option or Dividend Equivalent
         holders in exchange for the cancellation of their outstanding
         nonstatutory Options or Dividend Equivalents; or

                 (iv)    Make any other adjustments or amendments to the Plan
         and outstanding Incentive Awards and substitute new Incentive Awards.

11.      TAX WITHHOLDING.

         The Company shall be entitled to require payment in cash or deduction
from other compensation payable to each Participant of any sums required by
Federal, state or local tax law to be withheld with respect to the issuance,
vesting, exercise or payment of any Incentive Award. The Committee may in its
discretion and in satisfaction of the foregoing requirement allow such
Participant to elect to have the Company withhold shares of Common Stock

                                      16

<PAGE>

otherwise issuable under such Award (or allow the return of shares of Common
Stock) having a Fair Market Value equal to the sums required to be withheld.
Notwithstanding any other provision of the Plan, the number of shares of
Common Stock which may be withheld with respect to the issuance, vesting,
exercise or payment of any Incentive Award (or which may be repurchased from
the Participant of such Incentive Award within six months after such shares of
Common Stock were acquired by the Participant from the Company) in order to
satisfy the Participant's Federal and state income and payroll tax liabilities
with respect to the issuance, vesting, exercise or payment of the Incentive
Award shall be limited to the number of shares which have a Fair Market Value
on the date of withholding or repurchase equal to the aggregate amount of such
liabilities based on the minimum statutory withholding rates for Federal and
state tax income and payroll tax purposes that are applicable to such
supplemental taxable income.

12.      GENERAL PROVISIONS.

         (a)     Nothing in the Plan or in any instrument executed pursuant to
the Plan shall confer upon any Participant any right to continue in the employ
of the Company or any of its subsidiaries or affect the right of the Company
to terminate the employment of any Participant at any time with or without
cause.

         (b)     No shares of Common Stock shall be issued or transferred
pursuant to an Incentive Award unless and until all then applicable
requirements imposed by Federal and state securities and their laws, rules and
regulations and by any regulatory agencies having jurisdiction, and by any
stock exchanges upon which the Common Stock may be listed, having been fully
met. As a condition precedent to the issuance of shares pursuant to the grant
or exercise of an Incentive Award, the Company may require the Participant to
take any reasonable action to meet such requirements.

         (c)     No Participant and no beneficiary or other person claiming
under or through such Participant shall have any right, title or interest in
or to any shares of Common Stock allocated or reserved under the Plan or
subject to any Incentive Award except as to such shares of Common Stock, if
any, that have been issued or transferred to such Participant.

         (d)     The Company may make such provisions as they deem appropriate
to withhold any taxes the Company determines it is required to withhold in
connection with any Incentive Award.

         (e)     The Company may make a loan to a Participant in connection
with (i) the exercise of an Option in an amount not to exceed the aggregate
exercise price of the Option being exercised and the grossed up amount of any
Federal and state taxes payable in connection with such exercise for the
purpose of assisting such optionee to exercise such Option and (ii) the
vesting of an Incentive Stock Award in an amount equal to the grossed up
amount of any Federal and state taxes payable as a result of such vesting. Any
such loan may

                                      17

<PAGE>

be secured by shares of Common Stock or other collateral deemed adequate by the
Committee and shall comply in all respects with all applicable laws and
regulations. The Committee may adopt policies regarding eligibility for such
loans, the maximum amounts thereof and any terms and conditions not specified in
the Plan upon which such loans shall be made. In no event shall the interest
rate be less than the minimum rate established by the Internal Revenue Service
for the purpose of the purchase and sale of property.

         (f)     The forms of Options and/or the right to credits or credits
for Dividend Equivalents granted under the Plan may contain such other
provisions as the Committee may deem advisable. Without limiting the foregoing
and if so authorized by the Committee, the Company may, with the consent of
the Participant, and at any time or from time to time, cancel the right to
credits or credits for Dividend Equivalents or all or a portion of any Option
granted under the Plan then subject to exercise and discharge its obligation
in respect of the Option and/or the right to credits or credits for Dividend
Equivalents either by payment to the Participant of an amount of cash equal to
the excess, if any, of the Fair Market Value, at such time, of the shares
subject to the portion of the Option and/or the right to credits or credits
for Dividend Equivalents so cancelled over the aggregate purchase price
specified in the Option and/or the right to credits or credits for Dividend
Equivalents covering such shares, or by issuance or transfer to the
Participant of shares of Common Stock with a Fair Market Value, at such time,
equal to any such excess, or by a combination of cash and shares. Upon any
such payment of cash or issuance of shares, (i) there shall be charged against
the aggregate limitations set forth in Section 3(a) a number of shares equal
to the number of shares so issued plus the number of shares purchasable with
the amount of any cash paid to the Participant on the basis of the Fair Market
Value as of the date of payment, and (ii) the number of shares subject to the
portion of the Option so cancelled, less the number of shares so charged
against such limitations, shall thereafter be available for other grants.

         (h)     No Incentive Award shall be granted which would violate the
Company's articles of incorporation or which would cause the Company to not
qualify as a real estate investment trust.

         (i)     No Participant may make an election under Section 83(b) of
the Code regarding any Incentive Award without the prior consent of the
Committee in its sole discretion.

         (j)     No Incentive Award and no right under the Plan, contingent or
otherwise, shall be assignable or transferable or subject to any encumbrance,
pledge or charge of any nature, subject to the provisions of Section 7(d),
except that, under such rules and regulations as the Company may establish
pursuant to the terms of the Plan, a beneficiary may be designated with
respect to an Incentive Award in the event of death of a Participant. If such
beneficiary is the executor or administrator of the estate of the Participant,
any rights with respect to such Incentive Award may be transferred to the
person or persons or entity (including a trust) entitled thereto under the
will of the holder of such Incentive Award.

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         (k)     Notwithstanding any other provision of the Plan, the Plan,
and any Incentive Award granted or awarded to any individual who is then
subject to Section 16 of the Exchange Act, shall be subject to any additional
limitations set forth in any applicable exemptive rule under Section 16 of the
Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that
are requirements for the application of such exemptive rule. To the extent
permitted by applicable law, the Plan and Incentive Awards granted or awarded
hereunder shall be deemed amended to the extent necessary to conform to such
applicable exemptive rule.

13.      APPROVAL OF PLAN BY STOCKHOLDERS.

         The Plan shall be submitted for the approval of the Company's
stockholders within twelve months after the date of the Board's initial
adoption of the Plan. Incentive Awards may be granted or awarded prior to such
stockholder approval, provided that such Incentive Awards shall not be
exercisable nor shall such Incentive Awards vest prior to the time when the
Plan is approved by the stockholders, and provided further that if such
approval has not been obtained at the end of said twelve-month period, all
Awards previously granted or awarded under the Plan shall thereupon be
canceled and become null and void. In addition, if the Board determines that
Incentive Awards other than Options which may be granted to Section 162(m)
Participants should continue to be eligible to qualify as performance-based
compensation under Section 162(m)(4)(C) of the Code, the Performance Criteria
must be disclosed to and approved by the Company's stockholders no later than
the first stockholder meeting that occurs in the fifth year following the year
in which the Company's stockholders previously approved the Performance
Criteria.

14.      EFFECT OF PLAN UPON OPTIONS AND COMPENSATION PLANS.

         The adoption of the Plan shall not affect any other compensation or
incentive plans in effect for the Company or any subsidiary. Nothing in the
Plan shall be construed to limit the right of the Company (a) to establish any
other forms of incentives or compensation for Employees, Directors or
Consultants of the Company or any subsidiary or (b) to grant or assume options
or other rights or awards otherwise than under the Plan in connection with any
proper corporate purpose including but not by way of limitation, the grant or
assumption of options in connection with the acquisition by purchase, lease,
merger, consolidation or otherwise, of the business, stock or assets of any
corporation, partnership, limited liability company, firm or association

15.      AMENDMENT AND TERMINATION.

                                      19

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         (a)     The Committee shall have the power, in its discretion, to
amend, suspend or terminate the Plan at any time. No such amendment shall,
without approval of the stockholders of the Company, except as provided in
Section 10 of the Plan, increase the number of shares of Common Stock subject
to the Plan or make any other change to the Plan that would require
stockholder approval as a matter of applicable law, stock exchange regulation
or exemptive condition. In addition, subject to Section 10(a), no amendment to
the Plan shall permit repricing of any outstanding Incentive Awards.

         (b)     The Committee may, with the consent of a Participant, make
such modifications in the terms and conditions of an Incentive Award agreement
as it deems advisable including accelerating the vesting and exercise dates of
any outstanding Options and making grants of Common Stock equal to all
outstanding credits of Dividend Equivalents; provided, however, no
modifications of an Incentive Award agreement shall permit repricing of any
outstanding Incentive Awards.

         (c)     No amendment, suspension or termination of the Plan shall,
without the consent of the Participant, alter, terminate, impair or adversely
affect any right or obligation under any Incentive Award previously granted
under the Plan.

16.      EFFECTIVE DATE OF PLAN AND DURATION OF PLAN.

         This 2000 Stock Incentive Plan shall become effective upon adoption
by the Board and the holders of a majority of the outstanding shares at a
meeting of the stockholders of the Company. Unless previously terminated, the
Plan shall terminate on April 28, 2008. If not approved, this 2000 Incentive
Plan shall not take effect and the Second Amended and Restated Directors Stock
Incentive Plan shall remain in full force and effect.

                                     20

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