Document:

exv10w3

 

Exhibit 10.3

	 	 	 	 	 
	

	 	[_]
	 	Participant’s Copy
	

	 	[_]
	 	Company’s Copy

Capital Automotive Group

Second Amended and Restated 1998 Equity Incentive Plan

Restricted Share Agreement

To                                       :

Under the Capital Automotive Group Second Amended and Restated 1998 Equity
Incentive Plan (the “Plan”), Capital Automotive REIT (the “Company”) has
granted you (the “Grants”) the number of common shares of beneficial interest
(the “Shares”) set forth on Schedule I to this Agreement, subject to your
payment of the sum of the par value of such Shares (equal to 1 cent per Share
times the number of Shares) and also subject to certain restrictions specified
below in Restrictions and Forfeiture. (While subject to the Restrictions, this
Agreement refers to the Shares as “Restricted Shares”.) Each Date of Grant is
set forth on Schedule I.

The Restricted Shares are subject in all respects to the applicable provisions
of the Plan. By signing this Agreement (the “Agreement”), you acknowledge
receiving a copy of the Plan. This Agreement amends and restates any and all
prior (i) Performance Accelerated Restricted Share Agreements, and (ii) Amended
and Restated Restricted Share Agreements by and between the Company and
participant. This Agreement incorporates the Plan by reference and specifies
other applicable terms and conditions. All terms not defined by this Agreement
have the meanings given in the Plan. The Executive Compensation Committee (the
"Administrator”) of the Company’s Board of Trustees (the “Board”) may adjust
the number of Shares from time to time under the Plan.

In addition to the terms, conditions, and restrictions set forth in the Plan,
the following terms, conditions, and restrictions apply to the Restricted
Shares:

	 	 	 
	Restrictions and Forfeiture

	 	You may not sell, assign, pledge,
encumber, or otherwise transfer any
interest in the Restricted Shares
until the dates set forth in the
Vesting Schedule in Schedule I, at
which point the Restricted Shares
will be referred to as “Vested.”
	 
	 	 
	

	 	Unless the Administrator determines
otherwise at any time, if your
employment with the Company
terminates for any reason before the
Restricted Shares are Vested, then
your un-Vested Restricted Shares
will be forfeited. The forfeited
Restricted Shares will then
immediately revert to the Company.
You will receive no payment for
Restricted Shares that you forfeit.

 

 

	 	 	 
	Vesting Schedule

	 	Assuming you remain an employee of
the Company, all Restrictions will
lapse on the Restricted Shares on
the Vesting date or Vesting dates
set forth in Schedule I for the
applicable grant of Restricted
Shares and they will become Vested,
and you will be able, subject to
normal securities limitations, to
sell the Shares. The Final Vesting
Date will not change based upon the
Company meeting or failing to meet
performance targets.
	 
	 	 
	Limited Status

	 	You understand and agree that you
will not be deemed for any purpose
to be a shareholder of the Company
(other than as the next paragraph
states) with respect to any of the
Restricted Shares unless and until
they have been issued to you and
they become Vested.
	 
	 	 
	Dividend Equivalents and Voting

	 	 The Company will pay you additional
compensation when it pays dividends
with respect to its Shares. Under
this additional compensation, you
will receive the same amount,
reduced by withholding, as though
you had owned the Restricted Shares
and received dividends on those
Shares. You will receive dividend
equivalents only with respect to
record dates that follow the Date of
Grant. You will not receive
dividend equivalents if you have
made a dividend reinvestment
election (in the manner specified by
the Administrator) instead. You
will not receive dividend
equivalents on any Restricted Shares
after you forfeit them. You will
not have any voting rights on any
Restricted Shares.
	 
	 	 
	Ownership

	 	The Company will retain the
Restricted Shares until the Shares
become Vested. After becoming
Vested, the Company will transfer
the Shares to you, either in book
entry form or by share certificates.
You will not receive the Shares
until the following conditions have
been satisfied:

	 	 	 	 	 
	

	 	a.
	 	completing or amending any
registration or qualification of the
Shares or satisfying any exemption
from registration under any Federal
or state law, rule, or regulation;
	 
	 	 	 	 
	

	 	b.
	 	complying with any requests for
representations under the Plan; and
	 
	 	 	 	 
	

	 	c.
	 	complying with any federal, state
or local tax withholding
obligations.

	 	 	 
	Tax Withholding

	 	Unless you make an 83(b) election
(using Exhibit A to this Agreement
or another comparable form, within
30 days of the Date of Grant) and
pay taxes in accordance with that
election, you will be taxed on the
Shares as they become Vested and
must arrange to pay the taxes on
this income. Arrangements for
paying the taxes may include your
surrendering Shares

[Name of Participant]

2

 

	 	 	 
	

	 	of beneficial
interest that otherwise would be
released to you upon becoming Vested
or your surrendering Shares that you
already own. The fair market value
of the Shares you surrender,
determined as of the date when taxes
otherwise would have been withheld
in cash, will be applied as a credit
against the withholding taxes.
	 
	 	 
	REIT Restrictions

	 	The Administrator may delay or
prohibit release of the Shares to
you if such release would adversely
affect the Company’s status under
the Internal Revenue Code as a real
estate investment trust or would
result in your owning Shares in
violation of the restrictions on
ownership and transfer of Shares
provided in the Company’s
Declaration of Trust.
	 
	 	 
	Representations

	 	If, at the time the Company should
issue you Shares, no current
registration statement under the
Securities Act of 1933 (the “Act”)
covers such issuance, you must,
before the Company will issue such
Shares to you:

	 	 	 	 	 
	

	 	a.
	 	represent to the Company, in form
satisfactory to the Company’s
counsel, that you are receiving the
Shares for your own account and not
with a view to reselling or
distributing the Shares; and
	 
	 	 	 	 
	

	 	b.
	 	agree that you may not sell,
transfer, or otherwise dispose of
the Shares issued to you under the
Agreement unless:

	 	 	 	 	 
	

	 	i.
	 	a registration statement under
the Act is effective at the time of
disposition with respect to the
Shares sold, transferred, or
otherwise disposed of; or
	 
	 	 	 	 
	

	 	ii.
	 	the Company has received an
opinion of counsel or other
information and representations
satisfactory to it to the effect
that registration under the Act is
not required by reason of Rule 144
under the Act or otherwise.

	 	 	 
	Capital Changes

	 	If any change is made in the Shares,
without the Company’s receiving
consideration (through merger,
consolidation, reorganization,
recapitalization, reincorporation,
share dividend, dividend in property
other than cash, share split,
liquidating dividend, combination of
shares, exchange of shares, change
in corporate structure, or other
transaction not involving the
Company’s receipt of consideration
but excluding the conversion of any
convertible securities), the Board
will adjust the Restricted Shares as
to the class(es) and number of
Shares and price per Share of
securities subject to the Agreement,
with the Board’s adjustments being
final, binding, and conclusive.

[Name of Participant]

3

 

	 	 	 
	Additional Restriction

	 	You will not receive the Shares if
issuing the Shares would violate any
applicable federal or state
securities laws or other laws or
regulations.
	 
	 	 
	No Effect on Employment

	 	Nothing in this Agreement restricts
the right of the Company or any of
its affiliates to terminate your
employment at any time, with or
without cause. The termination of
employment, whether by the Company
or any of its affiliates or
otherwise, and regardless of the
reason therefor, has the
consequences provided for under the
Plan and any applicable employment
or severance agreement.
	 
	 	 
	No Effect on Corporate Authority

	 	 You understand and agree that the
existence of this Agreement will not
affect in any way the right or power
of the Company or its shareholders
to make or authorize any or all
adjustments, recapitalizations,
reorganizations, or other changes in
the Company’s capital structure or
its business, or any merger or
consolidation of the Company, or any
issuance of bonds, debentures,
preferred or other stocks with
preference ahead of or convertible
into, or otherwise affecting the
common shares or the rights thereof,
or the dissolution or liquidation of
the Company, or any sale or transfer
of all or any part of its assets or
business, or any other corporate act
or proceeding, whether of a similar
character or otherwise.
	 
	 	 
	Governing Law

	 	The laws of the State of Maryland
will govern all matters relating to
this Agreement, without regard to
the principles of conflict of laws.
	 
	 	 
	Notices

	 	Any notice you give to the Company
must be in writing and either
hand-delivered or mailed to the
office of the Secretary of the
Company (or to the Chair of the
Administrator if you are then
serving as Secretary). If mailed,
it should be addressed to the
Secretary (or the Chair of the
Administrator) of the Company at the
Company’s then corporate
headquarters, unless the Company
directs participants to send notices
to another department in the Company
or to a third party administrator or
specifies another method of
transmitting notice. The Company or
other administrator will address any
notices to you at your office or
home address as reflected on the
Company’s personnel records. You
and the Company may change the
address for notice by like notice to
the other, and the Company can also
change the address for notice by
general announcements to
participants.
	 
	 	 
	Conflicting Terms

	 	Wherever a conflict may arise
between the terms of this Agreement
and the terms of the Plan, the terms
of the Plan will control.

[Name of Participant]

4

 

	 	 	 
	

	 	Capital Automotive REIT
	 
	 	 
	Date:                                                          

	 	By:                                                         
	

	 	      Thomas D. Eckert, President & CEO

ACKNOWLEDGMENT

     I acknowledge receipt of a copy of the Plan. I represent that I have read
and am familiar with the Plan’s terms. By signing this Agreement and Schedule
I, I accept the Grant subject to all of the terms and provisions of this
Agreement and of the Plan under which it is granted, as the Plan may be amended
in accordance with its terms. I agree to accept as binding, conclusive, and
final all decisions or interpretations of the Administrator concerning any
questions arising under the Plan with respect to the Grant.

	 	 	 
	Date:                                                          

	 	                                                         
	

	 	      Signature of Participant

No one may sell, transfer, or distribute the Restricted Shares described
in this Agreement without an effective registration statement relating
thereto or a satisfactory opinion of counsel satisfactory to the Company
or other information and representations satisfactory to the Company that
such registration is not required.

[Name of Participant]

5exv10w4

 

Exhibit 10.4

CAPITAL AUTOMOTIVE REIT

Deferred Compensation and Stock Plan For Trustees

ARTICLE I

INTRODUCTION

     1.1 This Deferred Compensation and Stock Plan (the “Trustee Plan”) is
established by Capital Automotive REIT (the “Company”) for the benefit of its
Trustees and their Beneficiaries (as such terms are defined below), and it
shall be maintained according to the terms hereof. The Company shall have the
sole authority to amend, interpret, manage, and administer the Trustee Plan.

ARTICLE II

DEFINITIONS

     2.1 DEFINITIONS. When used herein, the following words and phrases shall
have the meanings assigned to them, unless the context clearly indicates
otherwise:

     (a) “Beneficiary” means the person or persons, natural or otherwise,
designated by a Trustee under section 8.1.

     (b) “Board of Trustees” means the board of trustees of Capital Automotive
REIT.

     (c) “Cash Deferred Fee Account” means a bookkeeping account established by
the Company in the name of a Trustee to which is credited (1) any Trustee’s
Fees that are deferred by the Trustee under section 3.1(a) and directed into
the Cash Deferred Fee Account under section 3.1(b), and (2) any interest that
is credited by the Company under Article IV.

     (d) “Deferred Fee Accounts” means a Trustee’s Cash Deferred Fee Account
and Stock Deferred Fee Account.

     (e) “Deferred Fee Agreement” means the written agreement, substantially in
the form of Exhibit A hereto, between the Company and a Trustee, which,
together with the Trustee Plan, governs the Trustee’s rights to payment of
deferred Trustee’s Fees (adjusted for investment performance) under the Trustee
Plan.

     (f) “Trustee” means a member of the Board of Trustees.

     (g) “Trustee’s Fees” means the annual retainer paid to a Trustee, any fees
paid to a Trustee for attending meetings of the Board of Trustees or any
committee of the Board of Trustees, and any fees paid to a Trustee for serving
as chairman of a committee of the Board of Trustees.

 

 

     (h) “Fair Market Value” means the closing sale price of a share of Company
common stock if the shares trade on a national securities exchange, and
otherwise as determined under the Capital Automotive Group Second Amended and
Restated 1998 Equity Incentive Plan (the “Equity Incentive Plan”).

     (i) “Financial Hardships” means a financial hardship of the Trustee
resulting from an illness or accident of the Trustee, the Trustee’s spouse, or
the Trustee’s dependent, loss of the Trustee’s property due to casualty
(including the need to rebuild a home following damage to a home not otherwise
covered by homeowner’s insurance), or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Trustee. The existence of a financial hardship shall be determined by the
President of the Company in his discretion.

     (j) “Interest” means the amount of interest credited to a Trustee’s Cash
Deferred Fee Account at five percent (5%) per annum.

     (k) “Trustee Plan” means the Capital Automotive REIT Deferred Compensation
and Stock Plan for Trustees set forth in this document effective as of January
1, 2004, as amended by the Company from time to time.

     (l) “Shares” means phantom shares of the Company’s common stock.

     (m) “Stock Deferred Fee Accounts” means a bookkeeping account established
by the Company in the name of a Trustee to which are credited (1) Shares for
any Trustee’s Fees that are deferred by the Trustee under section 3.1(a) and
directed into the Stock Deferred Fee Account under section 3.1(b), and (2) any
additional Shares that are credited by the Company under Article V.

ARTICLE III

DEFERRAL OF TRUSTEE’S FEES

     3.1 ELECTION TO DEFER FEES.

     (a) The election to defer Trustee’s Fees earned for a given year shall be
made no later than December 15 of the previous year by filing a Deferred Fee
Agreement with the Company. For a new Trustee, the election to defer Trustee’s
Fees earned during his or her initial calendar year of service shall be made
within thirty days following the Trustee’s election or appointment.

     (b) When a Trustee elects to defer Trustee’s Fees under section 3.1(a),
the Trustee shall also elect whether amounts deferred should be credited to his
or her Cash Deferred Fee Account or to his or her Stock Deferred Fee Account.

2

 

     3.2 CREDITING TO DEFERRED FEE ACCOUNTS.

     (a) When a Trustee elects under section 3.1(b) to have Trustee’s Fees
credited to his or her Cash Deferred Fee Account, the Company shall credit the
Trustee’s Cash Deferred Fee Account, on the next business day following each
regularly scheduled Board of Trustees meeting, with the amount of such
Trustee’s Fees accrued since the last regularly scheduled Board of Trustees
meeting.

     (b) When a Trustee elects under section 3.1(b) to have Trustee’s Fees
credited to his or her Stock Deferred Fee Account, the Company shall credit the
Trustee’s Stock Deferred Fee Account, on the next business day following each
regularly scheduled quarterly Board of Trustees meeting, with a certain number
of Shares. The number of Shares credited to the Stock Deferred Fee Account
shall be the quotient of the amount of Trustee’s Fees accrued since the last
regularly scheduled Board of Trustees meeting, divided by the Fair Market Value
of the Company’s common stock on such date. No fractional Shares shall be
credited under the Trustee Plan – the number of Shares credited shall always be
rounded up to the next whole share.

     3.3 MODIFICATION OR REVOCATION OF DEFERRAL. A Trustee may, on a
prospective basis only, revoke his or her election to defer Trustee’s Fees or
change his or her election regarding the Deferred Fee Account to which his or
her deferred Trustee’s Fees are credited by a written revocation to the
Secretary of the Company.

ARTICLE IV

INTEREST

     4.1 INTEREST. Interest on the balance shall be credited to each Trustee’s
Cash Deferred Fee Account, as of the end of each calendar quarter, at a rate of
5% per annum.

ARTICLE V

DIVIDENDS

     5.1 CREDITING OF DIVIDENDS. Each Trustee with shares credited to his or
her Stock Deferred Fee Account on the record date of a dividend on the
Company’s common stock shall be credited on the payment date of the dividend
with a number of Shares (rounded up to the next whole share) determined by
dividing the product of the number of shares credited to the Trustee’s Stock
Deferred Fee Account on the dividend record date and the dividend per share on
the Company’s common stock by the Fair Market Value of the Company’s common
stock on the dividend payment date.

3

 

ARTICLE VI

PAYMENT OF DEFERRED FEES

     6.1 DEFERRED FEES. A Trustee shall be entitled to receive a benefit equal
to the amounts credited to his or her Deferred Fee Accounts at the time
specified in such Trustee’s Deferred Fee Agreement. Amounts credited to a
Trustee’s Cash Deferred Fee Account shall be paid in cash. Shares credited to a
Trustee’s Stock Deferred Fee Account shall, at the option of the Company, be
(i) converted into common shares of the Company and issued to the Trustee, or
(ii) paid to the Trustee in cash in an amount equal to the number of credited
Shares multiplied by the Fair Market Value of the Company’s common stock on the
payment date.

     6.2 PAYMENT. The amount credited to the Trustee’s Deferred Fee Accounts
shall be paid in a lump sum in accordance with the terms of such Trustee’s
Deferred Fee Agreement. Notwithstanding the foregoing, no payment of common
shares from a Trustee’s Stock Deferred Fee Account shall be made unless the
Company may validly issue common shares at such time pursuant to all applicable
rules and regulations, including but not limited to corporate law, securities
law and stock exchange rules. If common shares may not be issued, subject to
compliance with applicable securities laws requirements, the Fair Market Value
of the Shares credited to a Trustee’s Stock Deferred Fee Account shall be
distributed in cash.

ARTICLE VII

HARDSHIP WITHDRAWALS

     7.1 WITHDRAWALS FROM DEFERRED FEE ACCOUNTS. Except as set forth in the
following sentence, no Trustee, Beneficiary, nor any other individual or entity
shall have any right to make any early withdrawals from such Trustee’s Deferred
Fee Accounts. A Trustee may, in the discretion of the Company, be entitled to
withdraw all or a portion of the amount credited to his or her Deferred Fee
Accounts in the event of financial hardship. Withdrawals from the Cash
Deferred Fee Account shall be payable in cash and withdrawals from the Stock
Deferred Fee Account shall be payable in common shares, subject to the
provisions of Section 6.1 and 6.2.

ARTICLE VIII

BENEFICIARIES

     8.1 DESIGNATION OF BENEFICIARY. Each Trustee may designate from time to
time any person or persons, natural or otherwise, as his or her Beneficiary or
Beneficiaries to whom benefits are to be paid if he or she dies while entitled
to benefits. Each Beneficiary designation shall be made either in the Deferred
Fee Agreement or on a form prescribed by the Secretary of the Company and shall
be effective only when filed with the Secretary during the
Trustee’s lifetime. Each Beneficiary designation filed with the Secretary
shall revoke all Beneficiary designations previously made by the Trustee. The
revocation of a Beneficiary designation shall not require the consent of any
designated Beneficiary. If the Trustee’s designated Beneficiary predeceases
the Trustee, or no Beneficiary has been designated, the Trustee’s Beneficiary
shall be deemed to be the Trustee’s spouse or, if none, the Trustee’s estate.

4

 

ARTICLE IX

ADMINISTRATION

     9.1 PLAN LIMITATIONS. At no time shall the number of shares reserved for
issuance pursuant to this Trustee Plan, together with the shares reserved for
issuance pursuant to all other stock option, stock purchase or similar plans of
the Company, exceed the number of shares available under the Equity Incentive
Plan.

     9.2 RIGHT TO TERMINATE. The Board of Trustees may amend or terminate the
Trustee Plan at any time in whole or in part. No amendment or termination of
the Trustee Plan shall reduce any amounts credited to a Trustee’s Deferred Fee
Accounts, any amount owed to him or her by the Company as of the date of
amendment or termination, or the amount of Interest accrued or number of Shares
credited, as of such date, to his or her account.

     9.3 UNFUNDED OBLIGATION. The obligation of the Company to pay any
benefits under the Trustee Plan shall be unfunded and unsecured, and any
payments under the Trustee Plan shall be made from the general assets of the
Company. Trustee’s rights under the Trustee Plan are not assignable or
transferable other than by will or the laws of descent and distribution, and
such rights are exercisable during the Trustee’s lifetime only by him or her,
or by his or her guardian or legal representative.

     9.4 WITHHOLDING. The Trustees, their Beneficiaries and personal
representatives shall bear any and all federal, state, local or other taxes
imposed on benefits under the Trustee Plan. The Company may deduct from any
distributions under the Trustee Plan the amount of any taxes required to be
withheld from such distribution by any federal, state or local government, and
may deduct from any compensation or other amounts payable to the Trustee the
amount of any taxes required to be withheld with respect to any other amounts
under the Trustee Plan by any federal, state or local government.

     9.5 APPLICABLE LAW. This Trustee Plan shall be construed and enforced in
accordance with the laws of the State of Maryland, except to the extent
superseded by federal law.

     9.6 ADMINISTRATION AND INTERPRETATION. The President of Capital
Automotive REIT shall have the authority and responsibility to administer and
interpret the Trustee Plan. Benefits due and owing to a Trustee or Beneficiary
under the Trustee Plan shall be paid when due without any requirement that a
claim for benefits be filed. However, any Trustee or Beneficiary who has not
received the benefits to which he or she believes himself or herself entitled
may file a written claim with the President, who shall act on the claim within
thirty days, and such action on any such claim shall be conclusive. If there
is any conflict or inconsistency between the terms of the Equity Incentive Plan
and the Trustee Plan, the terms of the Equity Incentive Plan shall apply.

5

 

EXHIBIT A

DEFERRED FEE AGREEMENT

     This Agreement between Capital Automotive REIT (the “Company”) and
                                       (the “Trustee”) is made as of December 15, 20                   , under the
Capital Automotive REIT Deferred Compensation and Stock Plan for Trustees (the
“Trustee Plan”).

     1. DEFERRED FEE PLAN. The Trustee agrees to the terms and conditions of
the Trustee Plan, a copy of which has been delivered to the Trustee and
constitutes a part of this Agreement. Capitalized words and phrases in this
Agreement shall have the meaning given to them in the Trustee Plan, unless the
context clearly indicates otherwise.

     2. ELECTION TO DEFER FEES. The Trustee authorizes and directs the Company
to defer the Trustee’s Fees earned on and after January 1, 20                   . The Trustee
may at any time revoke this election on a prospective basis beginning after the
date of such revocation by delivering to the Secretary of the Company a written
revocation of the election.

     3. INVESTMENT OF DEFERRED FEES. The Trustee elects to have his or her
deferred Trustee’s Fees credited to (check one):

                   A) Cash Deferred Fee Account

OR

                   B) Stock Deferred Fee Account

     4. TIME OF DISTRIBUTION. The Trustee elects to receive the amount of
Deferred Fees credited to his or her Deferred Fee Accounts pursuant to this
Agreement on the earlier of                                       , 20                   , and January 15 of the year
following his or her termination of service as a Trustee.

     5. BENEFICIARY. The Trustee requests that, following his or her death, any
amounts remaining in his or her Deferred Fee Accounts be paid (in accordance
with Section 4 above) to the Beneficiary or Beneficiaries he or she has
designated below:

     This form supersedes any previous Beneficiary designation I may have
previously made under the Trustee Plan.

 

 

	 	 	 	 	 
	NAME & ADDRESS

	 	RELATIONSHIP
	 	PERCENTAGE
	                                      
	 	 	 	 
	                                      

	 	                                      
	 	                                      
	                                      
	 	 	 	 
	 
	 	 	 	 
	NAME & ADDRESS

	 	RELATIONSHIP
	 	PERCENTAGE
	                                      
	 	 	 	 
	                                      

	 	                                      
	 	                                      
	                                      
	 	 	 	 
	 
	 	 	 	 
	NAME & ADDRESS

	 	RELATIONSHIP
	 	PERCENTAGE
	                                      
	 	 	 	 
	                                      

	 	                                      
	 	                                      
	                                      
	 	 	 	 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year written above.

	 	 	 	 	 	 	 
	 	 	

	 	 	Trustee
	 
	 	 	 	 	 	 
	 	 	CAPITAL AUTOMOTIVE REIT
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	

	 	 	 	
	 	 
	

	 	Name:	 	 	 	 
	

	 	 	 	
	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	
	 	 

2

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