Document:

Exhibit 10.3

 

[DIRECTOR FORM]

VENTAS, INC.

STOCK OPTION AGREEMENT

THIS STOCK OPTION AGREEMENT (“Agreement”)
is made and entered into as of                 (“Effective
Date”), by and between VENTAS, INC., a
Delaware corporation (“Company”), and                 ,
a non-employee director of the Company (“Optionee”).

RECITALS:

A.             The
Company has adopted the 2006 Stock Plan for Directors (“Plan”) to promote the
interests of the Company, its subsidiaries and stockholders by enabling
directors, such as Optionee, to invest in the Company’s shares of common stock,
having a par value of $0.25 per share (“Common Stock”).

B.               Company
believes that such investment should increase the personal interest and special
efforts of Optionee in providing for the continued success and progress of the
Company.

AGREEMENT:

NOW, THEREFORE, the parties
agree as follows:

1.                Grant
of Option; Option Price.  Company
hereby grants to Optionee, as a matter of separate inducement and agreement in
connection with her being a director of the Company (and not in lieu of any
salary or other compensation for Optionee’s services) the right and option to
purchase (the “Option”) all or any part of an aggregate of                 (           )
shares of Common Stock (“Option Shares”) on the terms and conditions set forth
herein, subject to adjustment as provided in Section 7, at a purchase price of                     ($        ).  The Company and Optionee consider the Option
Price to be not less than the Fair Market Value (as defined in the Plan) of the
Common Stock on the Effective Date, which is the date on which the Option was
granted to Optionee (“Option Date”).

2.                Term
and Time of Exercise of the Option. 
The Option shall commence on the date hereof and continue for a term
ending ten years from the Option Date (“Termination Date”), unless sooner
terminated as provided in Section 6.

3.                Option
Exercisable in Installments. 
Subject to the other terms and conditions stated herein, the right to
exercise the Option shall accrue in installments as follows:

(a)                             First
Installment.  Commencing on the
Option Date, Optionee may exercise the Option for up to 50 percent of the
number of Option Shares.

 

 

(b)                             Second Installment. 
Commencing on the first anniversary of the Option Date, the Option may
be fully exercised to the extent that it has not previously been exercised.

Notwithstanding
the foregoing, upon a Change in Control as defined in the Plan or the
retirement of the Optionee as a director, Optionee shall have the right to
exercise the Option in full as to all Option Shares.

4.                Conditions
to Exercise of the Option.

(a)                             Exercise
of Option.  Subject to the
provisions of Section 3, Optionee may exercise the Option by delivering to
the Company written notice (“Notice”) of exercise stating the number of Option
Shares for which the Option is being exercised accompanied by payment in the
amount of the Option Price multiplied by the number of shares for which the
Option is being exercised (the “Exercise Price”) in the manner provided in
Section 4(b).

(b)                             Payment
of Exercise Price.  Company shall
accept as payment for the Exercise Price (a) a check payable to the order of
Company, (b) the tender of Common Stock (by either actual delivery of Common
Stock or by attestation) having a Fair Market Value (determined as of the close
of the business day immediately preceding the date of exercise of the Option)
provided such Common Stock has been held by Optionee for at least six months
prior to tender, (c) “cashless exercise” through a third party in a transaction
independent of the Company and properly structured to avoid any adverse
accounting consequences to the Company, (d) a combination of the foregoing, or
(e) by any other means which the Committee determines.

(c)                             Delivery
of Shares on Exercise.  As soon
as practicable after receipt of the Notice and payment of the Exercise Price,
Company shall deliver to Optionee, without transfer or issuance tax or other
incidental expense to Optionee, at the office of Company, or at such other
place as may be mutually acceptable, or, at the election of Company, by
certified mail addressed to Optionee at the Optionee’s address shown in the
records of Company, a certificate or certificates for the number of shares of
Common Stock set forth in the Notice and for which Company has received payment
in the manner prescribed herein.  Company
may postpone such delivery until it receives satisfactory proof that the
issuance or transfer of such shares will not violate any of the provisions of
the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934,
as amended, any rules or regulations of the Securities and Exchange Commission
promulgated thereunder, or the requirements of applicable state law relating to
authorization, issuance or sale of securities, or until there has been compliance
with the provisions of such acts or rules. 
If Optionee fails to accept delivery of all or any part of the number of
shares of Common Stock specified in such notice upon tender of delivery
thereof, her right to exercise the Option for such undelivered shares may be
terminated by the Company.

 

 

5.                Restrictions
on Transfer of Option.

(a)                             Except
as provided in Section 5(b), the Option shall be exercisable during Optionee’s
lifetime only by Optionee, and neither the Option nor any right hereunder shall
be transferable except by will or the laws of descent and distribution.  The Option may not be subject to execution or
other similar process.  If Optionee
attempts to alienate, assign, pledge, hypothecate or otherwise dispose of the
Option or any of the Optionee’s rights hereunder, except as provided herein or
in Section 5(b), or in the event of any levy or any attachment, execution or
similar process upon the rights or interests hereby conferred, Company may
terminate the Option by notice to Optionee and it shall thereupon become null
and void.

(b)                             Optionee
may, subject to any restrictions under Section 16(b) of the Exchange Act,
transfer all rights under this Agreement to (i) Optionee’s spouse or lineal
descendants (“Immediate Family Members”), (ii) a trust or trusts for the
exclusive benefit of such Optionee and her Immediate Family Members, or (iii) a
partnership or limited liability company in which such Optionee and her
Immediate Family Members are the only partners or members, as applicable;
provided that (a) any such transfer must be without any consideration to
Optionee for such transfer, and (b) all subsequent transfers of any rights
under this Agreement shall be prohibited other than by bequest or the laws of
descent and distribution.  Following any such
transfer, this Agreement shall continue to be subject to the same terms and
conditions as were applicable immediately prior to transfer, provided that for
purposes of this Agreement and the Plan (excluding Section 6 hereof and
Section 4.2 of the Plan) the term “Optionee” shall be deemed to refer to
the transferee.  Any rights to exercise
the Option transferred hereunder shall be exercisable by the transferee only to
the extent, and for the periods, specified in this Agreement.

6.                Termination
of Option.

(a)                             If
the Optionee ceases to be a director of the Company for any reason other than
death, Disability, retirement or removal for Cause, the Option shall terminate six
months after the Optionee ceases to be a director of the Company (unless the
Optionee dies during such period) or on the Option’s expiration date, if
earlier, and shall be exercisable during such period after the Optionee ceases
to be a director of the Company only with respect to the number of Shares which
the Optionee was entitled to purchase on the day preceding the day on which the
Optionee ceased to be a director.

(b)                             If
the Optionee ceases to be a director of the Company because of removal for
Cause, the Option shall terminate on the date of the Optionee’s removal.

(c)                             In
the event of the Optionee’s death, Disability or retirement while a director of
the Company, or the Optionee’s death within six months after the Optionee
ceases to be a director (other than by reason of removal for Cause), the Option
shall terminate upon the earlier to occur of (i) 12 months after the date
of the Optionee’s death, Disability or retirement, or (ii) the Option’s
expiration date.  The Option shall be

 

 

exercisable during such period after the Optionee’s
death or Disability with respect to the number of Shares as to which the Option
shall have been exercisable on the date preceding the Optionee’s death or
Disability, as the case may be.  In the
event of the retirement of the Optionee, the Option shall be fully exercisable
during such period.

7.                Adjustment
to Option.  The Option shall be
subject to adjustment as provided in the Plan.

8.                Miscellaneous.

(a)                             No
Rights as Stockholder.  Neither
Optionee, nor any person entitled to exercise Optionee’s rights under this
Agreement, shall have any of the rights of a shareholder regarding the shares
of Common Stock subject to the Option, except after the exercise of the Option
as provided herein.

(b)                             Incorporation
of Plan.  This Agreement is and
shall be in all respects subject to the terms and conditions of the Plan, a
copy of which Optionee acknowledges receiving prior to the execution hereof.

(c)                             Captions.  The captions and section headings used herein
are for convenience only, shall not be deemed part of this Agreement and shall
not in any way restrict or modify the context and substance of any section or
paragraph of this Agreement.

(d)                             Governing
Law.  This Agreement shall be
governed by, and construed in accordance with, the laws of the State of
Delaware.

(e)                             Defined
Terms.  All defined terms used
herein which are defined in the Plan shall have the meanings set forth in the
Plan, unless a different meaning is plainly required by the context.

 

 

IN WITNESS WHEREOF, the parties
have executed this Agreement as of the day and year first above written.

	
   

  	
  VENTAS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAMEExhibit 10.4

 

[DIRECTOR
FORM]

VENTAS,
INC.

RESTRICTED STOCK AGREEMENT

THIS RESTRICTED STOCK AGREEMENT (“Agreement”)
is made and entered into as of the                day of               ,
by and between VENTAS, INC., a Delaware
corporation (“Company”), and               ,
a director of the Company (“Director”).

RECITALS:

A.                 The
Company has adopted the Ventas, Inc. 2006 Stock Plan for Directors to recognize
the extraordinary time and effort expended by directors for the Company.

B.                 Company
believes that such investment should increase the personal interest and special
efforts of Director in providing for the continued success and progress of
Company and should enhance the efforts of Company to attract and retain
competent non-employee directors.

AGREEMENT:

NOW, THEREFORE, the parties
agree as follows:

1.                                      Issuance
of Common Stock.  The Company
shall cause to be issued to Director               
(          ) shares of Common
Stock (the “Shares”).  The certificates
representing the Shares, together with a stock power duly endorsed in blank by
Director, shall be deposited with the Company to be held by it until the
restrictions imposed upon the Shares by this Agreement have expired.

2.                                      Vesting
of Shares.  If Director has not
forfeited any of the Shares, the restriction on the Transfer (as defined
herein) of the Shares shall expire with respect to one-half of the Shares on                 ,
and shall expire with respect to the balance of the Shares on                 .  Upon expiration of the restriction against
Transfer of any of the Shares pursuant to this Section 2, the Shares shall
vest.  Notwithstanding the foregoing, in
the event of (A) a Change in Control or (B) the death or Disability of Director,
the Shares shall automatically vest and all restrictions on the Shares shall
lapse.

3.                                      Forfeiture
of Shares.  If Director ceases to
be a Director for any reason other than death or Disability, all of the Shares
which have not vested in accordance with Section 2 of this Agreement shall be
forfeited and reconveyed to the Company by Director without additional
consideration and Director shall have no further rights with respect thereto.

4.                                      Restriction
on Transfer of Shares.  Director shall not Transfer any of the
Shares owned by Director until such restriction on the Transfer of the Shares
is removed pursuant to this Agreement. 
For the purposes of this Agreement, the term “Transfer” shall mean any
sale, exchange, assignment, gift, encumbrance, lien, transfer by bankruptcy or
judicial order, transfers by operation of law and all other types of transfers
and dispositions, whether direct or indirect, voluntary or involuntary.

 

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5.                                      Rights
as Stockholder.  Unless the
Shares are forfeited, Director shall be considered a stockholder of the Company
with respect to all such Shares that have not been forfeited and shall have all
rights appurtenant thereto, including the right to vote or consent to all
matters that may be presented to the stockholders and to receive all dividends
and other distributions paid on such Shares. 
If any dividends or distributions are paid in Common Stock, such Common
Stock shall be subject to the same restrictions as the Shares with respect to
which it was paid.

6.                                      Restrictive
Legend.  Each certificate
representing the Shares may bear the following legend:

The sale or other
transfer of the shares represented by this Certificate, whether voluntary,
involuntary or by operation of law, is subject to certain restrictions on
transfer (including conditions of forfeiture) as set forth in the Ventas, Inc.
2006 Stock Plan for Directors and in the related Restricted Stock
Agreement.  A copy of the Plan and such Restricted
Stock Agreement may be obtained from the Secretary of Ventas, Inc.

When
the Shares have become vested, Director shall have the right to have the preceding
legend removed from the certificate representing such vested Shares.

7.                                      Agreement
Does Not Grant Employment Rights. 
The granting of Shares shall not be construed as granting to Director
any right to employment by the Company. 
The right of the Company to terminate Director’s employment at any time,
whether by dismissal, discharge, retirement or otherwise, is specifically
reserved.

8.                                      Miscellaneous.

a.                                       Incorporation
of Plan.  This Agreement is and
shall be, in all respects, subject to the terms and conditions of the Plan, a
copy of which Director acknowledges receiving prior to the execution hereof and
the terms of which are incorporated by reference.

b.                                       Captions.  The captions and section headings used
herein are for convenience only, shall not be deemed a part of this Agreement
and shall not in any way restrict or modify the context or substance of any
section or paragraph of this Agreement.

c.                                       Governing
Law.  This Agreement shall be
governed by, and construed in accordance with, the laws of the State of
Delaware without regard to its conflict of laws rules.

d.                                       Section
83(b) Election Under the Code.  If
Director timely elects, under Section 83(b) of the Code, to include the fair
market value of the Shares on the date hereof in such Director’s gross income
for the current taxable year, Director agrees to give prompt written notice of
such election to the Company.  Director
hereby acknowledges that the Company may be obligated to withhold income taxes
for the income includable in Director’s income and hereby agrees to make
whatever arrangements are necessary to enable the Company to withhold as
required by law.

 

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e.                                       Defined
Terms.  All capitalized terms not
defined herein shall have the same meanings as set forth in the Plan unless a
different meaning is plainly required by the context.

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

	
   

  	
  VENTAS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NAME

  
							

 

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