Document:

exv10w2

 

EXHIBIT 10.2

RESTRICTED SHARE UNIT AGREEMENT

ARCHSTONE SMITH TRUST 2001 LONG-TERM INCENTIVE PLAN

Grant No. «GrantNo»

     THIS AGREEMENT, entered into as of «GrantDate» (the “Grant Date”), by and
between «FirstName» «Middle» «LastName» (the “Participant”), and
Archstone-Smith Trust (the “Trust”);

WITNESSETH THAT:

     WHEREAS, the Trust maintains the Archstone-Smith Trust 2001 Long-Term
Incentive Plan as amended from time to time (the “Plan”), which is incorporated
into and forms a part of this Agreement;

     WHEREAS, the Committee has awarded the Participant a restricted share unit
award under the Plan;

     NOW, THEREFORE, IT IS AGREED, by and between the Trust and the Participant
as follows:

	1.	 	Award. Subject to the terms of this Agreement and the Plan, the
Participant is hereby granted «NoRSUs» restricted share units (the
“Units”). The price of each Unit shall be «GrantPrice». This Award
contains the right to Dividend Equivalent Units as described in Paragraph
3 of this Agreement.
	 
	2.	 	Definitions. Except where the context clearly implies or indicates the
contrary, any term used in this Agreement but not defined herein shall
have the meaning given such term in the Plan.
	 
	3.	 	Dividend Equivalent Units. The Participant shall be entitled to receive
“Dividend Equivalent Units” with respect to the Units, as follows:

	 	(a)	 	Annual crediting of Dividend Equivalent Units. As soon as
possible after the first day of each calendar year, the Participant
shall be credited with a number of Dividend Equivalent Units equal
to (i) the amount the Committee determines to be the average
dividend yield per Share for the previous calendar year, multiplied
by (ii) the number of the Participant’s outstanding Units as of the
preceding December 31 (reduced pro rata to reflect Units that were
not outstanding on the record date with respect to each dividend
payment date during such preceding calendar year).
	 
	 	(b)	 	Additional credits to reflect dividend payments on Dividend
Equivalent Units. As soon as possible after the first day of each
calendar year, the Participant shall be credited with additional
Dividend Equivalent Units equal to (i) the amount the Committee
determines to be the average dividend yield per Share for the
previous calendar year, multiplied by (ii) the number of the
Participant’s outstanding Dividend Units as of the preceding
December 31 (reduced pro rata to reflect Dividend Equivalent Units
that were not outstanding on each dividend payment date during such
preceding calendar year).

	4.	 	Vesting. Subject to the terms and conditions of the Plan and this
Agreement, the Units and Dividend Equivalent Units awarded hereunder shall
vest in accordance with the following:

	 	(a)	 	The Units shall vest in one-third increments on each of
[insert dates that are first, second and third anniversary date of
approval of award by Compensation Committee] (each a “Vesting
Date”).
	 
	 	(b)	 	The Dividend Equivalent Units credited to the Participant
under Paragraph 3 shall vest in incremental installments on each
Vesting Date. The percentage of the Dividend Equivalent Units which
shall vest as of any Vesting Date shall be equal to the percentage
of the Participant’s Units which are vested as of such Vesting Date.

 

 

	 	(c)	 	The Units and Dividend Equivalent Units shall also vest as
described in Paragraph 12.

Notwithstanding the foregoing, if the Participant’s Date of Termination occurs
by reason of death or Disability, all unvested Units and Dividend Equivalent
Units shall immediately vest upon the Date of Termination. Except as otherwise
provided in the preceding sentence, all Units and Dividend Equivalent Units
which are not vested upon the Participant’s Date of Termination shall be
forfeited on such date. The Units and Dividend Equivalent Units shall also be
forfeited in accordance with Paragraph 11. For purposes of this Agreement, the
Participant’s “Date of Termination” shall be the date on which he both ceases
to be an employee of the Trust and the Subsidiaries and ceases to perform
material services for the Trust and the Subsidiaries, regardless of the reason
for the cessation; provided that a “Date of Termination” shall not be
considered to have occurred during the period in which the reason for the
cessation of services is a leave of absence approved by the Trust or the
Subsidiary which was the recipient of the Participant’s services. The
Participant shall be considered to have a “Disability” for purposes of this
Agreement during the period in which he is unable, by reason of a medically
determinable physical or mental impairment, to engage in the material and
substantial duties of his regular occupation, which condition is expected to be
permanent

	5.	 	Settlement.

	 	(a)	 	Subject to Paragraph 5 (b) below, the total number of Units
credited to the Participant that vest on a Vesting Date shall be
valued as of such Vesting Date, and settlement of the Units shall be
made as soon thereafter as practicable by transferring to the
Participant a number of whole Shares equal to the number of vested
Units which vested on the Vesting Date. The Units then being
settled shall be cancelled. The total number of Dividend Equivalent
Units credited to the Participant that vest on a Vesting Date shall
be valued and settled as soon as practicable after December 31 of
that year by transferring to the Participant a number of whole
Shares equal to the number of vested Dividend Equivalent Units which
vested on the Vesting Date, provided, however, that if the
Participant’s Date of Termination occurs prior to December 31, any
Dividend Equivalent Units that were vested as of the Participant’s
Date of Termination shall be valued as of that date and settlement
of the Dividend Equivalent Units shall be made as soon as
practicable thereafter by transferring to the Participant a number
of whole Shares equal to the number of vested Dividend Equivalent
Units on the Participant’s Date of Termination. All Dividend
Equivalent Units being settled as of any date shall then be
cancelled and all other Dividend Equivalent Units shall be forfeited
as described in paragraph 4.
	 
	 	(b)	 	Notwithstanding the foregoing to the contrary, the
Participant may elect to defer the settlement of the Units and
Dividend Equivalent Units in accordance with the terms of the
Archstone-Smith Trust Deferred Compensation Plan (the “Deferred
Compensation Plan”).

	6.	 	Withholding. All Awards and payments under this Agreement are subject to
withholding of all applicable taxes. At the election of the Participant,
and with the consent of and to the extent provided by the Committee, such
withholding obligations may be satisfied through the surrender of Shares
which the Participant already owns or to which the Participant is
otherwise entitled under the Plan; provided, however, that
previously-owned Shares that have been held by the Participant less than
six months or Shares to which the Participant is entitled under the Plan
may only be used to satisfy the minimum statutory obligation (based on
minimum statutory withholding rates for Federal and state tax purposes,
including payroll taxes, that are applicable to such supplemental taxable
income).
	 
	7.	 	Unit Not Shares. The award of Units and Dividend Equivalent Units under
this Agreement does not constitute the award of Shares, and nothing in
this Agreement shall be construed to give the Participant any rights as a
shareholder of the Trust prior to settlement of a vested Award.

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	8.	 	Transferability. This Award is not transferable except as designated by
the Participant by will or by the laws of descent and distribution.
	 
	9.	 	Adjustment of Award. The number of Units and Dividend Equivalent Units
associated with these Units awarded pursuant to this Award may be adjusted
by the Committee in accordance with the terms of the Plan to reflect
certain transactions which affect the number, type or value of the Shares.
	 
	10.	 	Non-Competition Agreement. The award made pursuant to this Agreement
shall be automatically forfeited as of the 90th day following the Grant
Date if, as of such date, the Participant has not executed a
non-competition agreement with the Trust in a form approved by the Trust.
	 
	11.	 	Forfeiture Provisions. In the event that the Committee determines that
the Participant has engaged in conduct in violation of any non-competition
agreement entered into between the Participant and the Trust or any
affiliated entity, any portion of this Award which has not been settled,
including any portion which has been deferred under the Deferred
Compensation Plan, shall be forfeited unless the Committee provides
otherwise.
	 
	12.	 	Change in Control. In the event that, (i) within one year following a
Change in Control, the Participant’s employment is terminated by the Trust
or the successor to the Trust or an affiliated entity which is his or her
employer for reasons other than Cause following a Change in Control of the
Trust (as defined below), or (ii) the Plan is terminated by the Trust or
its successor following a Change in Control without provision for the
continuation of the Award to the extent it is then outstanding hereunder,
this Award shall immediately vest. For purposes of this Agreement, a
“Change in Control” means the happening of any of the following:

	 	(a)	 	the shareholders of the Trust approve a definitive agreement
to merge the Trust into or consolidate the Trust with another
entity, sell or otherwise dispose of all or substantially all of its
assets or adopt a plan of liquidation, provided, however, that a
Change in Control shall not be deemed to have occurred by reason of
a transaction, or a substantially concurrent or otherwise related
series of transactions, upon the completion of which 50% or more of
the beneficial ownership of the voting power of the Trust, the
surviving corporation or corporation directly or indirectly
controlling the Trust or the surviving corporation, as the case may
be, is held by the same persons (as defined below) (although not
necessarily in the same proportion) as held the beneficial ownership
of the voting power of the Trust immediately prior to the
transaction or the substantially concurrent or otherwise related
series of transactions, except that upon the completion thereof,
employees or employee benefit plans of the Trust may be a new holder
of such beneficial ownership; provided, further, that a transaction
with an “Affiliate” of the Trust (as defined in the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) shall not be
treated as a Change in Control; or
	 
	 	(b)	 	the “beneficial ownership” (as defined in Rule 13d-3 under
the Exchange Act) of securities representing 50% or more of the
combined voting power of the Trust is acquired, other than from the
Trust, by an “person” as defined in Sections 13(d) and 14(d) of the
Exchange Act (other than any trustee or other fiduciary holding
securities under an employee benefit or other similar stock plan of
the Trust);
	 
	 	(c)	 	at any time during any period of two consecutive years
commencing on the Grant Date, individuals who at the beginning of
such period were members of the Board of Trustees of the Trust cease
for any reason to constitute at least a majority thereof (unless the
election, or the nomination for election by the Trust’s
shareholders, of each new trustee was approved by a vote of at least
two-thirds of the trustees still in office at the time of such
election or nomination who were trustees at the beginning of such
period).

Page 3 of 4

 

For purposes of this Paragraph, the Participant’s employment shall be
deemed to be terminated by the Trust or the successor to the Trust or an
affiliated entity for reasons other than Cause if the Participant
terminates employment within four months after (i) a substantial adverse
alteration in the nature of the Participant’s status or responsibilities
from those in effect immediately prior to the Change in Control, or (ii)
a material reduction in the Participant’s annual base salary and target
bonus, if any, as in effect immediately prior to the Change in Control.
If, upon a Change in Control, other equity-based awards are substituted
for outstanding Awards pursuant to the terms of the Plan and, immediately
following the Change in Control, the Participant becomes employed by the
entity into which the Trust merged, or the purchaser of substantially all
of the assets of the Trust, or a successor to such entity or purchaser,
the Participant shall not be treated as having terminated employment for
purposes of this Paragraph 12 until such time as the Participant
terminates employment with the merged entity or purchaser (or successor),
as applicable.

	13.	 	Administration. The authority to administer and interpret this Agreement
shall be vested in the Committee, and the Committee shall have all the
powers with respect to this Agreement as it has with respect to the Plan.
Any interpretation of the Agreement by the Committee and any decision made
by it with respect to the Agreement is final and binding on all persons.
	 
	14.	 	Plan Governs. The terms of this Agreement shall be subject to the terms
of the Plan, a copy of which may be obtained by the Participant from the
office of the Secretary of the Trust.
	 
	15.	 	Amendment and Termination. The Board may at any time amend or terminate
the Plan, provided that no such amendment or termination may materially
adversely affect the rights of the Participant awarded hereunder.

     IN WITNESS WHEREOF, the Participant has hereunto set his hand, and the
Trust has caused these presents to be executed in its name and on its behalf,
all as of the Grant Date.

	 	 	 
	ARCHSTONE SMITH TRUST

	 	PARTICIPANT
	 
	 	 
	
 

	 	
 

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EXHIBIT 10.3

RESTRICTED SHARE UNIT AGREEMENT

ARCHSTONE-SMITH TRUST EQUITY PLAN FOR OUTSIDE TRUSTEES

Grant No. «GrantNo»

     THIS AGREEMENT, entered into as of «GrantDate» (the “Grant Date”), by and
between «FirstName» «LastName» (the “Participant”), and Archstone-Smith Trust
(the “Trust”);

WITNESSETH THAT:

     WHEREAS, the Trust maintains the Archstone-Smith Trust Equity Plan for
Outside Trustees as amended from time to time (the “Plan”), which is
incorporated into and forms a part of this Agreement; and

     WHEREAS, the Participant has been awarded a restricted share unit award
under the Plan;

     NOW, THEREFORE, IT IS AGREED, by and between the Trust and the Participant
as follows:

1.      Award. Subject to the terms of this Agreement and the Plan, the Participant
is hereby granted «TotalShares» restricted share units (the “Units”). This
Award contains the right to Dividend Equivalent Units as described in Paragraph
3 of this Agreement.

2.      Definitions. Except where the context clearly implies or indicates the
contrary, any term used in this Agreement but not defined herein shall have the
meaning given such term in the Plan.

3.      Dividend Equivalent Units. The Participant shall be entitled to receive
“Dividend Equivalent Units” with respect to the Units, as follows:

	 	(a)	 	Annual crediting of Dividend Equivalent Units. As soon as
possible after the first day of each calendar year, the Participant
shall be credited with a number of Dividend Equivalent Units equal to
(i) the amount the Committee determines to be the average dividend
yield per share of Stock for the previous calendar year, multiplied
by (ii) the number of the Participant’s outstanding Units as of the
preceding December 31 (reduced pro rata to reflect Units that were
not outstanding on the record date with respect to each dividend
payment date during such preceding calendar year).
	 
	 	(b)	 	Additional credits to reflect dividend payments on Dividend
Equivalent Units. As soon as possible after the first day of each
calendar year, the Participant shall be credited with additional
Dividend Equivalent Units equal to (i) the amount the Committee
determines to be the average dividend yield per share of Stock for
the previous calendar year, multiplied by (ii) the number of the
Participant’s outstanding Dividend Units as of the preceding December
31 (reduced pro rata to reflect Dividend Equivalent Units that were
not outstanding on each dividend payment date during such preceding
calendar year).

4.      Vesting. Subject to the terms and conditions of the Plan and this
Agreement, the Units and Dividend Equivalent Units awarded hereunder shall vest
in accordance with the following:

	 	(a)	 	The Units shall vest in one-third increments, commencing on the
first anniversary date of the Grant Date with 33.33% of the Units
vesting on each of the first, second and third anniversary dates of
the Grant Date.
	 
	 	(b)	 	The Dividend Equivalent Units credited to the Participant under
Paragraph 3 shall vest in incremental installments as of each Grant
Date, beginning with the first anniversary of the Grant Date (each a
“Vesting Date”). The percentage of the Dividend Equivalent Units
which shall vest as of any Vesting Date shall be equal to the
percentage of the Participant’s Units which are vested as of such
Vesting Date.

 

 

	 	(c)	 	The Units and Dividend Equivalent Units shall also vest as
described in Paragraph 9.

All Units and Dividend Equivalent Units which are not vested upon the
Participant’s Date of Termination shall be forfeited on such date. For
purposes of this Agreement, the Participant’s “Date of Termination” shall
be the the day following the last day on which the Participant serves as a
Trustee.

     5.      Settlement.

	 	(a)	 	Subject to Paragraph 5 (b) below, the total number of Units and
Dividend Equivalent Units credited to the Participant that vest on a
Vesting Date shall be valued as of such Vesting Date, and settlement
of the Units and Dividend Equivalent Units shall be made as soon
thereafter as practicable by transferring to the Participant a number
of whole shares of Stock equal to the number of vested Units and
Dividend Equivalent Units which vested on the Vesting Date. The
Units and Dividend Equivalent Units then being settled shall be
cancelled.
	 
	 	(b)	 	Notwithstanding the foregoing to the contrary, the Participant
may elect to defer the settlement of the Units and Dividend
Equivalent Units in accordance with the terms of the Archstone-Smith
Deferred Compensation Plan (the “Deferred Compensation Plan”).

6.      Unit Not shares of Stock. The award of Units and Dividend Equivalent Units
under this Agreement does not constitute the award of shares of Stock, and
nothing in this Agreement shall be construed to give the Participant any rights
as a shareholder of the Trust prior to settlement of a vested Award.

7.      Transferability. This Award is not transferable except as designated by the
Participant by will or by the laws of descent and distribution.

8.      Adjustment of Award. The number of Units and Dividend Equivalent Units
associated with these Units awarded pursuant to this Award may be adjusted by
the Committee in accordance with the terms of the Plan to reflect certain
transactions which affect the number, type or value of the Stock .

	9.	 	Change in Control. In the event that, (i) a Trustee’s service is
terminated by the Trust or the successor to the Trust for reasons other
than Cause following a Change in Control of the Trust (as defined below),
or (ii) the Plan is terminated by the Trust or its successor following a
Change in Control without provision for the continuation of outstanding
awards hereunder, all awards which have not otherwise expired shall become
immediately fully vested. For purposes of the Plan, a “Change in Control”
means the happening of any of the following:

	 	(a)	 	the shareholders of the Trust approve a definitive agreement to
merge the Trust into or consolidate the Trust with another entity,
sell or otherwise dispose of all or substantially all of its assets
or adopt a plan of liquidation, provided, however, that a Change in
Control shall not be deemed to have occurred by reason of a
transaction, or a substantially concurrent or otherwise related
series of transactions, upon the completion of which 50% or more of
the beneficial ownership of the voting power of the Trust, the
surviving corporation or corporation directly or indirectly
controlling the Trust or the surviving corporation, as the case may
be, is held by the same persons (although not necessarily in the same
proportion) as held the beneficial ownership of the voting power of
the Trust immediately prior to the transaction or the substantially
concurrent or otherwise related series of transactions, except that
upon the completion thereof, employees or employee benefit plans of
the Trust may be a new holder of such beneficial ownership; provided,
further, that a transaction with an “Affiliate” of the Trust (as
defined in the Securities Exchange Act of 1934, as amended (the
‘Exchange Act’)) shall not be treated as a Change in Control; or

Page 2 of 3

 

	 	(b)	 	the “beneficial ownership” (as defined in Rule 13d-3 under the
Exchange Act) of securities representing 50% or more of the combined
voting power of the Trust is acquired, other than from the Trust, by
any “person” as defined in Sections 13(d) and 14(d) of the Exchange
Act (other than any trustee or other fiduciary holding securities
under an employee benefit or other similar stock plan of the Trust);
or
	 
	 	(c)	 	at any time during any period of two consecutive years,
individuals who at the beginning of such period were members of the
Board cease for any reason to constitute at least a majority thereof
(unless the election, or the nomination for election by the Trust’s
shareholders, of each new trustee was approved by a vote of at least
two-thirds of the trustees still in office at the time of such
election or nomination who were trustees at the beginning of such
period).

For purposes of the Plan, “Cause” shall mean, in the reasonable judgment
of the Administrator (i) the willful and continued failure by the Trustee
to substantially perform his or her duties with the Trust after written
notification by the Trust, (ii) the willful engaging by the Trustee in
conduct which is demonstrably injurious to the Trust or any Related Trust,
monetarily or otherwise, or (iii) the engaging by the Trustee in egregious
misconduct involving serious moral turpitude. For purposes hereof, no
act, or failure to act, on the Trustee’s part shall be deemed “willful”
unless done, or omitted to be done, by the Trustee not in good faith and
without reasonable belief that such action was in the best interest of the
Trust or Related Company. For purposes of this subsection, a Trustee’s
service shall be deemed to be terminated by the Trust or the successor to
the Trust if the Trustee terminates service after a material reduction in
the Trustee’s annual compensation as in effect immediately prior to the
Change in Control. If, upon a Change in Control, awards in other shares
or securities are substituted for outstanding Awards pursuant to Section
4.3, and immediately following the Change in Control the Trustee becomes
director of the entity into which the Trust merged, or the purchaser of
substantially all of the assets of the Trust, or a successor to such
entity or purchaser, the Trustee shall not be treated as having terminated
service for purposes of this Section 4.13 until such time as the Trustee
terminates service with the merged entity or purchaser (or successor), as
applicable.

10.      Plan Governs. The terms of this Agreement shall be subject to the terms of
the Plan, a copy of which may be obtained by the Participant from the office of
the Secretary of the Trust.

11.      Amendment and Termination. The Board may at any time amend or terminate
the Plan, provided that no such amendment or termination may materially
adversely affect the rights of the Participant awarded hereunder.

     IN WITNESS WHEREOF, the Participant has hereunto set his hand, and the
Trust has caused these presents to be executed in its name and on its behalf,
all as of the Grant Date.

	 	 	 
	ARCHSTONE SMITH TRUST

	 	PARTICIPANT
	 
	 	 
	 
	 	 
	
 

	 	
 

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