Document:

ex4_1.htm

    
      

    

    

    EXHIBIT
4.1                                Form
of Restricted Stock Agreement

    

    Restricted
Stock Agreement

    

    This RESTRICTED STOCK AGREEMENT (the
“Agreement”) is made this ______ day of ______________, 20__, by and between
MID-AMERICA APARTMENT COMMUNITIES, INC., a Tennessee corporation (the “Company”), and
__________________________, a resident of ___________________________,
_______  (the “Recipient”).

    

    

    W
I T N E S S E T H:

    

    WHEREAS the Company has adopted the
Mid-America Apartment Communities, Inc. 2004 Stock Plan, as amended (the “Plan”), which
authorizes the Company to award restricted shares (“Restricted Shares”)
of its common stock, $0.01 par value per share (the “Common Stock”), to
key employees of the Company and/or its affiliates (individually, a “Restricted Stock
Award”); and

    

    WHEREAS, the Compensation Committee of
the Board of Directors of the Company has adopted the 2008 Long-Term Incentive
Program (the “2008
Program”); and

    

    WHEREAS, the Company and Recipient wish
to confirm the terms and conditions of a Restricted Stock Award through the 2008
Program to Recipient on ___________________, 20___ (the “Date of
Award”).

    

    NOW, THEREFORE, in consideration of the
mutual covenants and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, it
is agreed between the parties hereto as follows:

    

    1.           Definitions.  Except
as provided in this Agreement, or unless the context otherwise requires, the
terms used herein shall have the same meaning as in the Plan.

    

    2.           Award of
Shares.  Upon and subject to the terms, restrictions,
limitations and conditions stated herein, the Company hereby awards to Recipient
____________ Restricted Shares of the Company’s Common Stock (the “Shares”).

    

    3.           Rights; Vesting;
Forfeiture.  Except as otherwise provided herein, Recipient
shall have full right, title and interest in the Shares to the extent such
Shares have vested in accordance with subparagraph (iii) below.

    

    i.           During
the Vesting Period (as defined below) and prior to the vesting of the Shares,
the Shares may not be sold, assigned, transferred, pledged or otherwise
encumbered by Recipient.  Certificates issued with respect to the
Shares shall be registered in the name of Recipient and deposited by Recipient
with the Company, and any such certificates shall bear an appropriate legend
disclosing the restrictions imposed on the Shares hereunder and by the
Plan.  Upon the lapse of the restrictions applicable to the Shares,
the Company shall deliver such certificates to Recipient or Recipient’s legal
representative, as the case may be.

    

    ii.           During
the Vesting Period the Recipient shall have all rights of a shareholder of the
Company (except as otherwise provided herein), including without limitation the
right to vote and receive dividends on the Shares.  If as a result of
a stock dividend, stock split, recapitalization or other adjustment in the
capital stock or stated capital of the Company, or as the result of a merger,
consolidation, or other reorganization, the Common Stock is increased, reduced
or otherwise changed and by virtue thereof, Recipient shall be entitled to new
or additional or different shares, with such new or additional shares being
subject to the same terms, conditions and restrictions as applicable to the
Shares, as determined by the 2008 Program.

    

    iii.           The
Shares shall vest at such time and on such date as the performance criteria
indicated on Schedule A has been satisfied (the “Vesting Date(s)”),
provided that Recipient is employed by the Company or an Affiliate (the “Employer”) at all
times following the Date of Award and prior to and on the Vesting Date(s) (the
“Vesting
Period”).  If, at any time during the Vesting Period,
Recipient’s employment with Employer is terminated for any reason other than as
a result of termination for good reason, termination without cause, death,
Disability, retirement or change of control, all of the Shares held by such
Recipient shall immediately and automatically be forfeited without monetary
consideration to the Company and shall be automatically canceled and
retired.  If Recipient’s employment with Employer is terminated for
termination for good reason, termination without cause, death, Disability,
retirement or change of control, all as defined in the 2008 Program, then in any
such case all Shares shall become immediately vested and
nonforfeitable.

    

    4.           Share Award and Shares
Subject to Plan.  The Restricted Stock Award represented by
this Agreement and the Shares shall be subject to, and the Company and Recipient
agree to be bound by, all of the terms and conditions of the Plan, as the same
shall be amended from time to time in accordance with the terms
thereof.

    

    5.           Covenants and
Representations of Recipient.  Recipient represents, warrants,
covenants and agrees with the Company as follows:

    

    i.           The
Shares cannot be offered for sale, sold or transferred by Recipient other than
pursuant to: (A) an effective registration under applicable state securities
laws or in a transaction which is otherwise in compliance with such laws; (B) an
effective registration under the Securities Act of 1933, as amended (the “1933
Act”), or in a transaction otherwise in compliance with the 1933 Act; and (C)
evidence satisfactory to the Company of compliance with the securities laws of
all applicable jurisdictions.  The Company shall be entitled to rely
upon an opinion of counsel satisfactory to it with respect to compliance with
the foregoing laws;

    

    ii.           The
Company will be under no obligation to register (or maintain the registration
of) the Shares or to comply with any exemption available for sale of the Shares
without registration.  The Company is under no obligation to act in
any manner so as to make Rule 144 promulgated under the 1933 Act available with
respect to sales of the Shares; and

    

    iii.           If
applicable, a legend indicating that the Shares have not been registered under
the applicable state securities laws and referring to any applicable
restrictions on transferability and sale of the Shares may be placed on the
certificate or certificates delivered to Recipient and any transfer agent of the
Company may be instructed to require compliance therewith.

    

    6.           Governing
Law.  This Agreement shall be construed, administered and
enforced according to the laws of the State of Tennessee, without regard to the
conflicts of laws provisions thereof.

    

    7.           Successors.  This
Agreement shall be binding upon and inure to the benefits of the heirs, legal
representatives, successors and permitted assigns of the parties.

    

    8.           Notice.  Except
as otherwise specified herein, all notices and other communications under this
Agreement shall be in writing and shall be deemed to have been given if
personally delivered or if sent by registered or certified United States mail,
return receipt requested, postage prepaid, addressed to the proposed recipient
at the last known address of such recipient.  Any party may designate
any other address to which notices shall be sent by giving notice of such
address to the other parties in the same manner provided herein.

    

    9.           Severability.  In
the event that any one or more of the provisions or portion thereof contained in
this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, the same shall not invalidate or otherwise affect
any other provisions of this Agreement and this Agreement shall be construed as
if such invalid, illegal or unenforceable provision or portion thereof had never
been contained herein.

    

    10.           Entire
Agreement.  Subject to the terms and conditions of the Plan,
this Agreement expresses the entire understanding and agreement of the parties
hereto with respect to such terms, restrictions and limitations.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed and original but all of which shall constitute one and the same
instrument.

    

    11.           Violation.  Any
transfer, pledge, sale, assignment or hypothecation of the Shares except in
accordance with this Agreement shall be a violation of the terms hereof and
shall be void and without effect.

    

    12.           Headings.  Section
headings used herein are for convenience of reference only and shall not be
considered in interpreting this Agreement.

    

    13.           Specific
Performance.  In the event of any actual or threatened default
in, or breach of, any of the terms, conditions and provisions of this Agreement,
the party or parties who are thereby aggrieved shall have the right to specific
performance and injunction in addition to any and all other rights and remedies
at law or in equity, and all such rights and remedies shall be
cumulative.

    

    14.           Counterparts.  This
Agreement may be executed by the signatures of each of the parties hereto, or to
a counterpart of this Agreement, and all such counterparts shall collectively
constitute one Agreement.  Facsimile signatures shall constitute
original signatures for purposes of this Agreement.

    

    IN WITNESS WHEREOF, the parties have
executed and sealed this Agreement on the day and year first set forth
above.

    

    MID-AMERICA APARTMENT COMMUNITIES,
INC.

    

    

    By:

    Name:

    Title:

    

    RECIPIENT:

    

    

    Signature:

    Name
(printed):ex10_1.htm

    EXHIBIT
10.1

    

    2008
Long-Term Incentive Program

    

    The
Mid-America Apartment Communities, Inc.’s, the “Company”, 2008 Long-Term
Incentive Plan, the “Plan” provides for awards of restricted shares of the
Company’s common stock equivalent to the dollar amount determined by multiplying
the participant base salary, as of July 1, 2008, by an opportunity percentage as
earned.  The share price to be used in defining the number of any and
all shares to be awarded will be the Company’s closing common stock price as of
July 1, 2008 (such that participants would also participate in, and be motivated
to drive, share price increase post July 1, 2008).

    

    All
participants will participate in an Annual Program which will offer award
opportunity percentages between 0% and 50%. Executive officers will additionally
participate in a Multi-Year Program which will offer award opportunities between
0% and 300%.

    

    Annual
Program

    

    The
Annual Program would award restricted shares, and subsequent full vesting of
those shares, based on the following performance from July 1, 2008 through
December 31, 2009:

    

    
      	
              1.  

            	
              Shares
      for the annual service based award (issuance of restricted shares
      contingent on maintaining employment in good standing through vesting of
      the shares) will be issued on July 1, 2008 and will achieve maximum
      (fastest) vesting if the Company’s total shareholder return, or “TSR”,
      over the annual performance period reaches or exceeds a pre-set level. If
      that level of TSR is achieved, the service based shares will vest 50% on
      January 1, 2010 and 50% on January 1, 2011.  If TSR is below the
      required level over the annual performance period, the shares will vest
      25% on January 1, 2011, 25% on January 1, 2012, 25% on January 1, 2013 and
      25% on January 1, 2014.

            

    

    

    
      	
              2.  

            	
              Portions
      of the annual performance based award opportunity will be earned if TSR
      over the performance period reaches pre-defined levels. TSR over the
      performance period much reach a minimum level to receive any shares. Any
      shares earned in the annual performance based award will be issued on
      January 1, 2010. All shares earned under the performance based award
      opportunity of the annual program will vest 50% on January 1, 2010 and 50%
      on January 1, 2011, dependent upon continued employment in good standing
      through each vest date.

            

    

    

    Multi-Year
Program

    

    The
Multi-Year Program (based solely on TSR performance) would award restricted
shares, and subsequent full vesting of those shares, based on the following
performance over the period of July 1, 2008 through December 31,
2011:

    

    
      	
              1.  

            	
              Half
      of the award opportunity will be based on the Company’s TSR (absolute
      performance). The Company’s TSR over the performance period will determine
      if no shares, Threshold level shares, Target level shares or High level
      shares are awarded.

            

    

    

    
      	
              2.  

            	
              The
      other half of the award opportunity will be based on the Company’s TSR
      performance as compared to the Apartment REIT Sector (relative
      performance). The Company’s TSR over the performance period between the
      20th
      percentile and the 33rd
      percentile will earn 50% of the Threshold Level. TSR ranking between the
      33.1 percentile and the 66th
      percentile will earn 50% of the Target Level, and TSR ranking in the 66.1
      percentile or higher will earn 50% of the High
  Level.

            

    

    

    
      	
              a.  

            	
              The
      Apartment REIT Sector performance will be the average of the following
      companies: AEC, AIV, AVB, BRE, CLP, CPT, EQR, ESS, HME, PPS, and UDR. Any
      individual company will be excluded from the average if that company
      announces a material event which impacts their stock performance. An
      example of a material event would be an announcement resulting in the
      stock of the company no longer trading in its current form (due to a
      merger, the company going private,
etc.).

            

    

    

    
      	
              3.  

            	
              Any
      shares earned through the Multi-Year Program will be issued on January 1,
      2012 and will vest 25% on 1/1/2013, 25% on 1/1/2014, 25% on 1/1/2015, and
      25% on 1/1/2016, dependent upon continued employment in good status
      through each vest date.

            

    

    

    Dividends

    

    Participants
will be eligible to receive dividends on shares during any and all applicable
vesting periods.

    

    Vesting
Resulting from Terminations

    

    In the
event of a “termination for cause” or a “voluntary termination”, as determined
by the Human Resources Department, issued and vested shares will be retained by
the participant and any issued and unvested shares will be immediately
forfeited.

    

    Early
vesting may occur as a result of any of the following: “termination for good
reason”, “termination without cause”, “death”, “disability”, “retirement” or
“change in control”. Immediately upon any of these events, issued and vested
shares will be retained by the participant and any issued and unvested shares
will become fully vested.

    

    For the
sole purpose of the 2008 Long-Term Incentive Plan, for a termination to be
eligible to be considered a “retirement”, the terminated participant must have
attained the age of 65 by the termination date.

    

    “Termination
for good reason”, “termination without cause”, “death”, “disability”, and
“retirement” shall be determined in accordance with the policies and procedures
of the Human Resources Department. A “change of control” means any of the
following events which occur before the final vesting of the share
grant:

    

    
      	
              1.  

            	
              any
      “person”, as that term is used in Section 13(d) and Section 14(d)(2) of
      the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
      becomes, is discovered to be, or files a report on Schedule 13D or 14D-1
      (or any successor schedule, form or report) disclosing that such person is
      a beneficial owner (as defined in Rule 13d-3 under the Exchange Act or any
      successor rule or regulation), directly or indirectly, of securities of
      the Company representing 25% or more of the combined voting power of the
      Company's then outstanding securities entitled to vote generally in the
      election of directors, regardless of whether or not the Board shall have
      approved the acquisition of such securities by the acquiring
      person;

            

    

    

    
      	
              2.  

            	
              individuals
      who, as of the effective date of this Agreement, constitute the Board of
      Directors of the Company cease for any reason to constitute at least a
      majority of the Board of Directors of the Company, unless any such change
      is approved by the vote of at least 80% of the members of the Board of
      Directors of the Company in office immediately prior to such
      cessation;

            

    

    

    
      	
              3.  

            	
              the
      Company is merged, consolidated or reorganized into or with another
      corporation or other legal person, or securities of the Company are
      exchanged for securities of another corporation or other legal person, and
      immediately after such merger, consolidation, reorganization or exchange
      less than 80% of the combined voting power of the then-outstanding
      securities of such corporation or person immediately after such
      transaction are held, directly or indirectly, in the aggregate by the
      holders of securities entitled to vote generally in the election of
      directors of the Company immediately prior to such
      transaction;

            

    

    

    
      	
              4.  

            	
              the
      Company in any transaction or series of related transactions, sells all or
      substantially all of its assets to any other corporation or other legal
      person and less than a majority of the combined voting power of the
      then-outstanding securities of such corporation or person immediately
      after such sale or sales are held, directly or indirectly, in the
      aggregate by the holders of securities entitled to vote generally in the
      election of directors of the Company immediately prior to such
      sale;

            

    

    

    
      	
              5.  

            	
              the
      Company and its affiliates shall sell or transfer (in a single transaction
      or series of related transactions) to a non-affiliate business operations
      or assets that generated at least two-thirds of the consolidated revenues
      (determined on the basis of the Company's four most recently completed
      fiscal quarters for which reports have been filed under the Exchange Act)
      of the Company and its subsidiaries immediately prior
    thereto;

            

    

    

    
      	
              6.  

            	
              the
      Company files a report or proxy statement with the Securities and Exchange
      Commission pursuant to the Exchange Act disclosing in response to Form 8-K
      (or any successor, form or report or item therein) that a change in
      control of the Company has
occurred;

            

    

    

    
      	
              7.  

            	
              the
      shareholders of the Company approve any plan or proposal for the
      liquidation or dissolution of the Company;
or

            

    

    

    
      	
              8.  

            	
              any
      other transaction or series of related transactions occur that have
      substantially the effect of the transactions specified in any of the
      preceding clauses in this sentence.

            

    

    

    Equity
Restructurings

    

    In the
event that any unusual or non-recurring transactions, including an unusual or
non-recurring dividend or other distribution (whether in the form of an
extraordinary cash dividend, dividend of shares, other securities or other
property), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase or exchange
of shares or other securities of the Company, issuance of warrants or other
rights to purchase shares or other securities of the Company, or other similar
corporate transaction or event affects the shares or other securities of the
Company, then the Compensation Committee of the Board of Directors shall in an
equitable and proportionate manner (and, as applicable, in such equitable and
proportionate manner as is consistent with Sections 422 and 409A of the
Code and the regulations thereunder) either: (i) adjust any or all of
(1) the aggregate number of shares or other securities of the Company (or
number and kind of other securities or property) with respect to which awards
may be granted under the 2008 Long-Term Incentive Plan; (2) the number of
shares or other securities of the Company (or number and kind of other
securities or property) subject to outstanding awards under the 2008 Long-Term
Incentive Plan, provided that the number of shares subject to any award shall
always be a whole number; (3) the grant or exercise price with respect to
any award under the 2008 Long-Term Incentive Plan; and (4) the limits on the
number of shares that may be granted to participants under the 2008 Long-Term
Incentive Plan in any calendar year; (ii) provide for an equivalent award
in respect of securities of the surviving entity of any merger, consolidation or
other transaction or event having a similar effect; or (iii) make provision
for a cash payment to the holder of an outstanding award.

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