Document:

EXHIBIT 10

EXHIBIT 10.25

 

As Amended and Restated

Effective October 1, 1999

1995 DIVIDEND INCREASE UNIT PLAN

OF

DUKE REALTY SERVICES LIMITED

PARTNERSHIP

 

ARTICLE I

Introduction

 

1.1.          Purpose. The 1995 Dividend Increase Unit Plan of

Duke Realty Services Limited Partnership (the “Plan”) is designed to retain

selected officers and key employees of the Partnership and to encourage the

growth of the Partnership and its Affiliates.

 

1.2.          Effective Date. 

The Effective Date of the Plan is October 1, 1995.  Provided, however, the Committee may, in its

discretion, grant Units under the Plan the terms of which provide that the

effective date of the grant is on or after January 1, 1995.

 

1.3.          Administration. 

The Plan shall be administered by the Committee.  The Committee, from time to time, may adopt

any rule or procedure it deems necessary or desirable for the proper and

efficient administration of the Plan, provided it is consistent with the terms

of the Plan. The decision of a majority of the Committee members shall constitute

the decision of the Committee. The Committee’s determinations and

interpretations with respect to the Plan shall be final and binding on all

parties. Any notice or document required to be given to or filed with the

Committee will be properly given or filed if delivered or mailed by certified

mail, postage prepaid, to the Committee at 8888 Keystone Crossing, Suite 1200,

Indianapolis, Indiana  46240-2182.

 

1.4           Definitions. 

For purposes of this Plan, unless a different meaning is clearly

required by the context:

 

(a)           “Affiliate” or

“Affiliates” means (i) any general partner of the Partnership, (ii) any entity

which owns a majority of the ownership interests of the Partnership, (iii) any

entity that owns a majority of the ownership interests of an entity described

in clause (i) or (ii) or an Affiliate of any such entity, or (iv) any

Subsidiary.

 

(b)           “Board of Directors”

means the board of directors of Duke Services, Inc.

 

(d)     “Change in Control of the Company” means

(i) any merger, consolidation or similar transaction which involves the Company

and in which persons who are the shareholders of the Company immediately prior

to such transaction own, immediately after such transaction, shares of the

surviving or combined entity which possess voting rights equal to or less than

fifty percent (50%) of the voting rights of all shareholders of such entity,

determined on a fully diluted basis; (ii) any sale, lease, exchange, transfer

or other disposition of all or any substantial part of the consolidated assets

of the Company; (iii) any tender, exchange, sale or other disposition (other

than disposition of the stock of the Company or any Subsidiary in connection

with bankruptcy, insolvency, foreclosure, receivership or other similar

transactions) or purchases (other than purchases by the Company or any Company

sponsored employee benefit plan, or purchases by members of the board of

directors of the Company or any Subsidiary) of shares which represent more than

twenty-five percent (25%) of the voting power of the Company or any Subsidiary;

(iv) during any period of two (2) consecutive years, individuals who at the

date of the adoption of the Plan constitute the Company’s board of directors

cease for any reason to constitute at least a majority thereof, unless the

election of each director at the beginning of such period has been approved by

directors representing at least a majority of the directors then in office who

were directors on the date of the adoption of the Plan; (v) a majority of the

Company’s board of directors recommends the acceptance of or accept any

agreement, contract, offer or other arrangement providing for, or any

 

 

series of transactions

resulting in, any of the transactions described above. Notwithstanding the

foregoing, a Change in Control of the Company (A) shall not occur as a result

of the issuance of stock by the Company in connection with any public offering

of its stock, or (B) be deemed to have occurred with respect to any transaction

unless such transaction has been approved or shares have been tendered by a

majority of the shareholders who are not Section 16 Grantees.

 

(d)           “Code” means the

Internal Revenue Code, as amended.

 

(e)           “Committee” means the Executive

Compensation Committee of the board of directors of the Company.

 

(f)            “Company” means Duke-Weeks Realty

Corporation, formerly known as Duke Realty Investments, Inc.

 

(g)           “Effective Date”

means October 1, 1995.

 

(h)           “Exchange Act” means

the Securities Exchange Act of 1934, as amended.

 

(i)            “For Cause” means

(i) the willful and continued failure of a Participant to perform his required

duties as an officer or employee of the Partnership or any Affiliate, (ii) any

action by a Participant which involves willful misfeasance or gross negligence,

(iii) the requirement of or direction by a federal or state regulatory agency

which has jurisdiction over the Partnership or any Affiliate to terminate the

employment of the Participant, (iv) the conviction of the Participant of the

commission of any criminal offense which involves dishonesty or breach of trust,

or (v) any intentional breach by the Participant of a material term, condition

or covenant of any agreement between the Participant and the Partnership or any

Affiliate.

 

(j)            “Participant” means

an officer or key employee who is designated to participate in the Plan as

provided in Article II.

 

(k)           “Partnership” means Duke Realty

Services Limited Partnership.

 

(l)            “Permanent and

Total Disability” means any disability that would qualify as a disability under

Code Section 22(e)(3).

 

(m)          “Per Share Value”

means the per share New York Stock Exchange closing price for the Company’s

common stock on the date of determination.

 

(n)           “Plan” means the

dividend increase plan embodied herein, as amended from time to time, known as

the 1995 Dividend Increase Unit Plan of Duke Services Limited Partnership.

 

(o)           “Section 16 Grantee”

means a person subject to potential liability under Section 16(b) of the

Exchange Act with respect to transactions involving equity securities of the

Company.

 

(p)           “Subsidiary” or

“Subsidiaries” means a corporation, partnership or limited liability company, a

majority of the outstanding voting stock, general partnership interests or

membership interest, as the case may be, of which is owned or controlled

directly or indirectly, by the Partnership, by the Company or by one or more

other Subsidiaries.  For the purposes of

this definition, “voting stock” means stock having voting power for the

election of directors, or trustees, as the case may be, whether at all times or

only so long as no senior class of stock has such voting power by reason of any

contingency.

 

(r)            “Unit” means a

dividend increase unit granted under Section 3.1.

 

2

 

1.5.          Shares Covered by the Plan.  The stock which may be issued under the Plan

in connection with the exercise of Units shall be shares of authorized common

stock of the Company and may be unissued shares or reacquired shares (including

shares purchased in the open market), or a combination of the two, as the Committee

may from time to time determine. Provided, however, subject to the provisions

of Section 5.2 and the provisions of this Section 1.5, the maximum number of

shares to be delivered upon the exercise of all Units granted under the Plan

shall, effective as of January 1, 1998, be increased from a maximum of Two

Hundred Thousand (200,000) shares to a maximum of Four Hundred Thousand

(400,000) shares. Shares covered by the grant of a Unit that remains

unexercised upon the expiration or termination of the Unit may be made subject

to further grants of Units.

 

ARTICLE II

Eligibility and Participation

 

Participation in the Plan is

limited to those officers and key employees of the Partnership and its

Affiliates who, from time to time, shall be designated by the Committee.

Committee members shall not be eligible to receive grants of Units under this

Plan while serving as Committee members. A designated employee will become a

Participant in the Plan as of the later of the Effective Date or the date

specified by the Committee.

 

ARTICLE III

Benefits

 

3.1.          Grant of Units. 

The Committee, in its sole discretion, may grant one (1) or more Units

to a Participant upon his entry into the Plan. The Committee, in its sole

discretion, may also grant additional Units to a Participant at any time after

the initial grant. Provided, however, notwithstanding any other Plan provision,

during any calendar year, no Participants shall be granted more than fifty

thousand (50,000) Units.

 

3.2.          Exercise of Units. 

A Participant may exercise his Units subject to the following

requirements:

 

(a)           Vesting of Units:  A Participant must be vested in a Unit in

order for that Unit to be exercised. 

For this purpose, the Committee will specify the vesting schedule for

each Unit it grants at the time of the grant. 

In addition, the Committee may, in its sole discretion, amend such

schedule in a manner which causes those units previously granted under the Plan

to vest under a more rapid schedule. Provided, however, the Committee shall not

amend such schedule to provide for the slower vesting of Units previously

granted under the Plan. Notwithstanding the foregoing, a Participant will, as

of the date of a Change in Control of the Company or his termination of

employment due to Permanent and Total Disability, retirement on or after

attaining age sixty-five (65) or death, become fully vested in all Units that

have been granted to him.

 

(b)           Timing of

Exercise:  A Unit must be exercised

on or before the tenth anniversary of the date on which it was granted.  If not exercised on or before that date, the

Unit will expire and be forfeited.

 

(c)           Prior Exercise of Stock Options.  Units may be exercised only to the extent

that the same or a greater number of shares of the Company’s common stock have

been acquired by the Participant through the exercise of a stock option which

was granted under the 1995 Key Employees’ Stock Option Plan of Duke Realty

Investments, Inc. (the “Stock Option Plan”) on the same date on which the Units

were granted. Such acquisition may have been prior to or simultaneous with the

exercise of such Units.  For example, if

a Participant was granted an option under the Stock Option Plan to acquire five

hundred (500) shares of the Company’s stock on the same date he was granted two

hundred (200) Units under the Plan, the Participant may not exercise the two

hundred (200) Units granted hereunder until he has acquired at least two

hundred (200) shares of stock under that stock option grant. Thus, if the

Participant has acquired (or simultaneously acquires with his exercise of the

Units) one hundred (100) shares under that stock option grant, he may at any

time on or after the date of such acquisition exercise up to one hundred (100)

Units hereunder, as long as all the other Plan conditions and limitations have

been satisfied with respect to such exercise, including the satisfaction by

 

3

 

the Participant of the vesting requirements

applicable to the Units desired to be exercised. Shares of Company stock acquired

by the exercise of an option granted under the Stock Option Plan on a date

other than the date on which the Units were granted hereunder may not be used

as a basis for the exercise of such Units.

 

(d)           Prior Notice of

Exercise.  The Participant must notify

the Committee of his intent to exercise a Unit by completing an election form

authorized by the Committee and filing such form with the Committee at least

ten (10) business days prior to the requested exercise date.

 

(e)           Termination of

Employment.  All rights to exercise

a Unit shall terminate ninety (90)  days

after the effective date of the Participant’s termination of employment with

the Partnership and its Affiliates, but not later than the date the Unit expires

pursuant to its terms, unless such termination is For Cause or is on account of

the Permanent and Total Disability or death of the Participant. Transfer of

employment from the Partnership to an Affiliate, or vice versa, shall not be

deemed a termination of employment. The Committee shall have the authority to

determine in each case whether a leave of absence on military or government

service shall be deemed a termination of employment for purposes of this

subsection (e).  However, if a

Participant’s employment terminates due to Permanent and Total Disability or

death, his right to exercise his Units shall expire one (1) year after his

termination of employment (but not later than the date the Unit expires

pursuant to its terms). During such period, subject to the limitations of this

Plan and the Unit grant, the Participant, his guardian, attorney-in-fact or

personal representative, as the case may be, may exercise his Unit in full.

 

(f)            For Cause

Termination.  If a Participant’s

employment with the Partnership and its Affiliates is terminated For Cause, no

previously unexercised Unit granted hereunder may be exercised.  Rather, all unexercised Units shall

terminate effective on the date the Participant receives notice of his

termination For Cause.

 

(g)           Withholding of

Taxes.  Each Participant shall be

solely responsible for, and the Partnership will withhold from any amounts

payable under this Plan, all legally required federal, state, city and local

taxes.  The Committee, in its discretion

and subject to such rules as it may adopt, may permit a Participant to satisfy,

in whole or in part, any withholding tax obligation which may arise in

connection with his exercise of Units by having the Partnership retain shares

of stock which would otherwise be issued in connection with the exercise of the

Units or accept delivery from the Participant of shares of Company stock which

have a value, determined as of the date of the delivery of such shares, equal

to the amount of withholding tax to be satisfied by that retention or delivery.

 

(h)           Committee

Discretion to Extend Time For Exercising Unit.  If a Participant’s employment terminates for any reason other

than For Cause, the Committee may, in its sole discretion, grant an extension

of the periods of time specified in subsection (e) for exercising a Unit, but

not later than the date the Unit expires pursuant to its terms, as required by

subsection (b).  During such extended

period, subject to the limitations of this Plan, and any grant letter which

evidences the Company’s grant of the Unit to the Participant, the Participant,

his guardian, attorney-in-fact or personal representative, as the case may be,

may exercise the Unit in full.

 

(i)            Committee

Discretion to Waive Requirement of Prior Exercise of Stock Options.  Notwithstanding the provisions of Section 3.2(c),

if a Participant desires to exercise Units but has not yet acquired the same or

a greater number of shares of the Company’s common stock through the exercise

of options granted under the Stock Option Plan on the same date on which the

Units were granted (the “Corresponding Stock Options”), the Committee shall

have the discretion to waive the requirement that the Corresponding Stock

Options be exercised provided that:

 

(i)            The

exercise price of the Corresponding Stock Options is more than the Per Share

Value as of the date on which the Unit is exercised;

 

(ii)           Pursuant

to an amendment to the applicable stock option agreement(s), the Participant

forfeits all of his or her rights to the Corresponding Stock Options in an

amount which is equal to the number of Units exercised; and

 

4

 

(iii)          The

value of each Unit exercised, as otherwise determined under Section 3.3, is

reduced, on a dollar-for-dollar basis, by the excess of the per share exercise

price of the Corresponding Stock Options over the Per Share Value on the date

on which the Unit is exercised.”

 

3.3.          Calculation of Unit Value.  Upon the exercise date, the Unit or Units being exercised will be

valued for all purposes under this Plan in accordance with the following

formula. First, the Per Share Value of a share of the Company’s common stock as

of the effective date on which the Unit was granted will be determined. Second,

the quarterly cash dividend rate per share of 

the Company’s common stock most recently declared prior to the effective

date of the grant will be determined and annualized (multiplied by four).

Third, that annualized cash dividend will be divided by the Per Share Value on

the effective date of the grant to set the grant date dividend yield. Fourth,

the quarterly cash dividend rate per share of the Company’s common stock which

was most recently declared on or before the exercise date will be determined

and annualized (multiplied by four). Fifth, the annualized cash dividend on the

effective date of the grant (as determined under the second step) will be

subtracted from the annualized dividend on the exercise date (as determined

under the fourth step) to determine the increase in the annualized cash

dividend.  Sixth, the amount of the increase

(as determined under the fifth step) will be divided by the grant date dividend

yield (as determined under the third step) to establish the Unit’s value on the

exercise date. For all purposes of this Plan, if there is no Per Share Value

for Company stock on the date on which an event which requires the stock to be

valued, the per share value shall be the Per Share Value for Company stock on

the trading date immediately preceding the date on which the stock is required

to be valued.

 

For example, if the Per

Share Value of a share of Company stock on the effective date of a Unit’s grant

was $30.00, the quarterly dividend rate on the date of grant was $0.49 and the

quarterly dividend rate on the date of exercise was $0.55, then the Unit’s

value at exercise would be $3.67, determined under the six steps in the

preceding paragraph as follows:

	

  (1)

  	

   

  	

  $30.00

  	

   

  	

  [NYSE Closing Price on

  Date of Grant]

  
	

  (2)

  	

   

  	

  $  1.96

  	

   

  	

  [$0.49 (Company’s

  Quarterly Cash Dividend on Date of Grant) x 4]

  
	

  (3)

  	

   

  	

  6.5333%

  	

   

  	

  [ (2) ÷ (1) ]

  
	

  (4)

  	

   

  	

  $  2.20

  	

   

  	

  [$0.55 (Company’s

  Quarterly Cash Dividend on Date of Exercise) x 4]

  
	

  (5)

  	

   

  	

  $  0.24

  	

   

  	

  [$2.20 - $1.96 = Increase

  in Annualized Cash Dividend]

  
	

  (6)

  	

   

  	

  $  3.67

  	

   

  	

  [ (5) ÷ (3) ]

  

 

If the Participant had been granted one hundred (100) Units and he

exercised all of those Units, he would be entitled to receive whole shares of

Company common stock with a value of $367 based on the Per Share Value on the

date of exercise.  (The number of shares

to be distributed is described under Section 4.2.)

 

ARTICLE IV

 

Distributions

 

4.1.          Time of Payment. 

The Partnership will pay to each Participant the value of the Unit or

Units, rounded to the nearest whole share of Company common stock, with respect

to which a proper and timely election has been made.  Such payment shall be made as soon as practicable following the

exercise date.

 

4.2.          Manner of Payment. 

Distribution of a Participant’s benefit under Section 4.1 will be made

in a single lump sum in the form of whole shares of Company common stock.  The number of shares to be issued under this

Section 4.2 will be based on the Per Share Value on the exercise date of the

Units.   For example, if the Per Share

Value on the date of exercise was $50.00 and the payment amount determined under

Section 3.3 (reduced by any tax withholdings pursuant to Section 3.2(g)) was

$367.00, the Participant would be entitled to receive seven (7) shares of

Company stock (367 ÷ 50 = 7.34).  On the

other hand, if the payment amount determined under Section 3.3 (reduced by any

tax withholdings pursuant to Section 3.2(g)) was $380.00, the Participant would

be entitled to receive eight (8) shares of Company stock ($380 ÷ 50 = 7.60).

 

5

 

4.3.          Distribution on Change of Control.  Notwithstanding any other Plan provision to

the contrary, each Participant will be entitled to receive, within ninety (90)

days of a Change in Control of the Company, a lump sum payment, in cash, of the

value of his Units determined under Section 3.3 as of the date of the Change in

Control of the Company.  Provided,

however no distribution under the Plan shall be made to a Participant who is a

Section 16 Grantee as a result of a Change in Control of the Company until six

(6) months from the date on which the Units were granted to the Participant.  This limitation shall not apply if the

Section 16 Grantee dies or incurs a mental or physical disability which, in the

opinion of the Committee, renders the Section 16 Grantee unable or incompetent

to carry out the job responsibilities which such Section 16 Grantee held or the

tasks to which such Section 16 Grantee was assigned at the time the disability

was incurred, and which is expected to be permanent or of an indefinite

duration.

 

ARTICLE V

 

Miscellaneous

 

5.1.          Amendment or Termination.  The Board of Directors or the Committee may, at any time, without

the approval of the stockholders of the Company (except as otherwise required

by applicable law, rule or regulations, or listing requirements of any National

Securities Exchange on which are listed any of the Company’s equity securities,

including without limitation any shareholder approval requirement of Rule 16b-3

or any successor safe harbor rule promulgated under the Exchange Act), alter,

amend, modify, suspend or discontinue the Plan but may not, without the consent

of the holder of a Unit, make any alteration which would adversely affect a

Unit previously granted under the Plan or, without the approval of the

stockholders of the Company, make any alteration which would: (a) increase the

aggregate number of shares which could be issued pursuant to the exercise of

Units under the Plan, except as provided in Section 5.2; (b) permit any

Committee member to become eligible to receive grants of Units under the Plan;

(c) withdraw administration of the Plan from the Committee or the Board of

Directors; (d) extend the term of the Plan or the maximum period during which

any Unit may be exercised; (e) change the manner of calculating the value of

Units; or (f) change the class of individuals eligible for the grant of Units

under the Plan.

 

5.2.          Changes in Stock.

 

(a)           Substitution of

Stock and Assumption of Plan.  In

the event of any change in the common stock of the Company through stock

dividends, split-ups, recapitalizations, reclassifications, conversions, or

otherwise, or in

 

result of any merger, consolidation, reorganization or similar

transaction which results in a Change in Control of the Company, then the

Committee may make appropriate adjustment or substitution in the aggregate

number, price, and kind of shares to be distributed under the Plan and in the

calculation of a Unit’s value provided in Section 3.3. The Committee’s

determination in this respect shall be final and conclusive. Provided, however,

that the Partnership shall not, and shall not permit its Affiliates to,

recommend, facilitate or agree or consent to a transaction or series of

transactions which would result in a Change of Control of the Company unless

and until the person or persons or entity or entities acquiring or succeeding

to the assets or capital stock of the Company or any of its Affiliates as a

result of such transaction or transactions agrees to be bound by the terms of

the Plan so far as its pertains to Units theretofore granted but unexercised

and agrees to assume and perform the obligations of the Partnership hereunder.

 

(b)           Conversion of

Stock.  In the event of a Change in

Control of the Company pursuant to which another person or entity acquires

control of the Company (such other person or entity being the “Successor”), the

kind of shares of common stock which shall be subject to the Plan and to each

outstanding Unit, shall, automatically, by virtue of such Change in Control of

the Company, be converted into and replaced by shares of common stock, or such

other class of securities having rights and preferences no less favorable than

common stock of the Successor, and the calculation of a Unit’s value shall be

correspondingly adjusted, so that, by virtue of such Change in Control of the

Company, each Participant shall have the right to receive that number of shares

of common stock of the Successor which have a fair market value equal, as of

the date of such Change in Control of the Company, to the fair market value, as

of the date of such Change in Control of the Company, of the shares of common

stock of the Company to which the Units relate.

 

6

 

5.3.          Information to be Furnished by Participants.  Participants, or any other persons entitled

to benefits under this Plan, must furnish to the Committee such documents,

evidence, data or other information as the Committee considers necessary or

desirable for the purpose of administering the Plan. The benefits under the

Plan for each Participant, and each other person who is entitled to benefits

hereunder, are to be provided on the condition that he furnish full, true and

complete data, evidence or other information, and that he will promptly sign

any document reasonably related to the administration of the Plan requested by

the Committee.

 

5.4.          Employment Rights. 

The Plan does not constitute a contract of employment and participation

in the Plan will not give a Participant the right to be rehired or retained in

the employ of the Partnership, nor will participation in the Plan give any

Participant any right or claim to any benefit under the Plan, unless such right

or claim has specifically accrued under the terms of the Plan.

 

5.5.          Evidence. 

Evidence required of anyone under the Plan may be by certificate,

affidavit, document or other information which the person relying thereon

considers pertinent and reliable, and signed, made or presented by the proper

party or parties.

 

5.6.          Gender and Number. 

Where the context admits, words in the masculine gender shall include

the feminine gender, the plural shall include the singular and the singular

shall include the plural.

 

5.7.          Action by Partnership.  Any action required of or permitted by the Partnership under the

Plan shall be by resolution of the Board of Directors or by a person or persons

authorized by resolution of the Board of Directors.

 

5.8.          Controlling Laws. 

Except to the extent superseded by laws of the United States, the laws

of Indiana shall be controlling in all matters relating to the Plan.

 

5.9.          Mistake of Fact. 

Any mistake of fact or misstatement of fact shall be corrected when it

becomes known and proper adjustment made by reason thereof.

 

5.10.        Severability. 

In the event any provisions of the Plan shall be held to be illegal or

invalid for any reason, such illegality or invalidity shall not affect the

remaining parts of the Plan, and the Plan shall be construed and endorsed as if

such illegal or invalid provisions had never been contained in the Plan.

 

5.11.        Effect of Headings. 

The descriptive headings of the sections of this Plan are inserted for

convenience of reference and identification only and do not constitute a part

of this Plan for purposes of interpretation.

 

5.12.        Nontransferability. 

No Unit shall be transferable, except by the Participant’s will or the

law of descent and distribution.  During

the Participant’s lifetime, his Unit shall be exercisable (to the extent

exercisable) only by him.  The Unit and

any rights and privileges pertaining thereto shall not be transferred,

assigned, pledged or hypothecated by him in any way, whether by operation of

law or otherwise and shall not be subject to execution, attachment or similar

process.

 

5.13.        Liability.  No

member of the Board of Directors or the Committee or any officer or employee of

the Partnership or its Affiliates shall be personally liable for any action,

omission or determination made in good faith in connection with the Plan. By

participating in the Plan, each Participant agrees to release and hold harmless

the Partnership, the Affiliates (and their respective directors, officers and

employees) and the Committee from and against any tax liability, including

without limitation, interest and penalties, incurred by the Participant in

connection with his participation in the Plan.

 

7

 

5.14.        Funding. 

Benefits payable under this Plan to a Participant or to a beneficiary

will be paid by the Partnership from its general assets.  Shares of the Company stock to be

distributed hereunder shall be acquired by the Partnership either directly from

the Company, on the open market or a combination thereof. The Partnership is

not required to segregate on its books or otherwise establish any funding

procedure for any amount to be used for the payment of benefits under this Plan.

The Partnership may, however, in its sole discretion, set funds aside in

investments to meet its anticipated obligations under the Plan. Any such action

or set-aside may not be deemed to create a trust of any kind between the

Partnership and any Participant or beneficiary or to constitute the funding of

any Plan benefits.  Consequently, any

person entitled to a payment under the Plan will have no rights greater than

the rights of any other unsecured creditor of the Partnership.

 

8EXHIBIT 10

EXHIBIT 10.26

AMENDMENT ONE TO THE

1995 DIVIDEND INCREASE UNIT PLAN OF

DUKE REALTY SERVICES LIMITED

PARTNERSHIP

 

This Amendment One to the

1995 Dividend Increase Unit Plan of Duke Realty Services Limited Partnership,

as amended and restated effective October 1, 1999 (“Plan”), is hereby adopted

this 1st day of June, 2000 by Duke Realty Services Limited Partnership

(“Partnership”).  Each capitalized term

not otherwise defined herein has the meaning set forth in the Plan.

WITNESSETH:

 

WHEREAS, the Partnership adopted

the Plan for the purposes set forth therein; and

WHEREAS, pursuant to Section

5.1 of the Plan, the board of directors of Duke Services, Inc. (“Board of

Directors”) and the Executive Compensation Committee of the board of directors

of Duke-Weeks Realty Corporation (“Committee”) have reserved the right to amend

the Plan with respect to certain matters; and

WHEREAS, the Committee has

determined to amend Section 3.2 of the Plan to permit Participants who retire

on or after attaining age fifty-five (55) to exercise their awards at any time

over the remaining term thereof and, with respect to Units granted on or after

July 1, 2000, to eliminate the requirement that a Unit be exercised only after

a corresponding stock option is exercised and to reduce the value of a Unit by

the out-of-the-money value of a corresponding stock option; and

WHEREAS, the Committee has

approved and authorized this Amendment One to the Plan;

 

NOW, THEREFORE, pursuant to

the authority reserved to the Committee under Section 5.1 of the Plan, the Plan

is hereby amended, effective with respect to all options outstanding as of June

1, 2000 and all options granted after that date, unless otherwise stated

herein, in the following particulars:

 

1.                             By

substituting the following for Section 3.2(a) of the Plan:

 

“(a)         Vesting of Units: 

A Participant must be vested in a Unit in order for that Unit to be

exercised.  For this purpose, the

Committee will specify the vesting schedule for each Unit it grants at the time

of the grant. In addition, the Committee may, in its sole discretion, amend

such schedule in a manner which causes those Units previously granted under the

Plan to vest under a more rapid schedule. 

Provided, however, the Committee shall not amend such schedule to

provide for the slower vesting of Units previously granted under the Plan.

Notwithstanding the foregoing, a Participant will, as of the date of a Change

in Control of the Company or his termination of employment due to Permanent and

Total Disability, retirement on or after attaining age fifty-five (55) or

death, become fully vested in all Units that have been granted to him.”

 

1.                             By substituting the

following for Section 3.2(c) of the Plan, effective with respect to Units

granted on or after July 1, 2000:

 

“(c)         Prior Exercise of Stock Options.  The provisions of this subsection (c) shall

apply to Units granted before July 1, 2000; Units granted on or after July 1,

2000 may be exercised without regard to whether a stock option granted under

the 1995 Key Employees’ Stock Option Plan of Duke Realty Investments, Inc. (the

“Stock Option Plan”) on the same date on which the Units were granted

(“Corresponding Stock Option”) is exercised on the same date on which the Units

were granted.

 

 

Units may be exercised only

to the extent that the same or a greater number of shares of the Company’s

common stock have been acquired by the Participant through the exercise of a

Corresponding Stock Option.  Such

acquisition may have been prior to or simultaneous with the exercise of such

Units. For example, if a Participant was granted an option under the Stock

Option Plan to acquire five hundred (500) shares of the Company’s stock on the

same date he was granted two hundred (200) Units under the Plan, the

Participant may not exercise the two hundred (200) Units granted hereunder

until he has acquired at least two hundred (200) shares of stock under that

Corresponding Stock Option. Thus, if the Participant has acquired (or

simultaneously acquires with his exercise of the Units) one hundred (100) shares

under that Corresponding Stock Option, he may at any time on or after the date

of such acquisition exercise up to one hundred (100) Units hereunder, as long

as all the other Plan conditions and limitations have been satisfied with

respect to such exercise, including the satisfaction by the Participant of the

vesting requirements applicable to the Units desired to be exercised. An option

granted under the Stock Option Plan on a date other than the date on which the

Units were granted hereunder is not a Corresponding Stock Option and the

exercise thereof may not be used as a basis for the exercise of such Units.”

 

1.                             By

substituting the following for Section 3.2(e) of the Plan:

 

“(e)         Termination of Employment.  All rights to exercise a Unit shall terminate ninety (90) days

after the effective date of the Participant’s termination of employment with

the Partnership and its Affiliates, but not later than the date the Unit

expires pursuant to its terms, unless such termination is For Cause or

 

is on account of the

Permanent and Total Disability, death or retirement of the Participant on or

after attaining age fifty-five (55). Transfer of employment from the

Partnership to an Affiliate, or vice versa, shall not be deemed a termination

of employment. The Committee shall have the authority to determine in each case

whether a leave of absence on military or government service shall be deemed a

termination of employment for purposes of this subsection (e).

 

If a Participant’s

employment terminates due to Permanent and Total Disability or death, his right

to exercise his Units shall expire one (1) year after his termination of

employment (but not later than the date the Unit expires pursuant to its

terms). During such period, subject to the limitations of this Plan and the

Unit grant, the Participant, his guardian, attorney-in-fact or personal

representative, as the case may be, may exercise his Units in full.

 

If a Participant’s

employment terminates due to retirement on or after attaining age fifty-five

(55), the Participant shall have the right to exercise his Units at any time

during the remaining term thereof. 

During such period, subject to the limitations of this Plan and the Unit

grant, the Participant may exercise his Units in full.  If the Participant dies during such period,

the right to exercise the Units shall continue until the date the Unit expires

pursuant to its terms.”

 

1.                             By

substituting the following for Section 3.2(h) of the Plan:

 

“(h)         Committee Discretion to Extend Time for Exercising Unit.  If a Participant’s employment terminates for

any reason other than (i) retirement on or after attaining age fifty-five (55),

or (ii) For Cause, the Committee may, in its sole discretion, grant an

extension of the periods of time specified in subsection (e) for exercising

Units, but not later than the date the Unit expires pursuant to its terms.  During such extended period, subject to the

limitations of this Plan and any grant letter which evidences the Company’s

grant of the Units to the Participant, the Participant, his guardian,

attorney-in-fact or personal representative, as the case may be, may exercise

the Units in full.

 

2

 

1.                             By

substituting the following for Section 3.2(i) of the Plan:

 

“(i)          Committee Discretion to Waive Requirement of Prior

Exercise of Stock Options.

 

(1)

This Paragraph (1) shall apply only to Units issued before July 1, 2000.  Notwithstanding the provisions of Section

3.2(c), if a Participant desires to exercise Units but has not yet acquired the

same or a greater number of shares of the Company’s common stock through the

exercise of options granted under the Stock Option Plan on the same date on

which the Units were granted (the “Corresponding Stock Options”), the Committee

shall have the discretion to waive the requirement that the Corresponding Stock

Options be exercised provided that:

 

(i)    The exercise price of the Corresponding

Stock Options is more than the Per Share Value as of the date on which the Unit

is exercised;

 

(ii)   Pursuant to an amendment to the applicable

stock option agreement(s), the Participant forfeits all of his or her rights to

the Corresponding Stock Options in an amount which is equal to the number of

Units exercised; and

 

(iii)  The value of each Unit exercised, as otherwise

determined under Section 3.3, is reduced, on a dollar-for-dollar basis, by the

excess of the per share exercise price of the Corresponding Stock Options over

the Per Share Value on the date on which the Unit is exercised.

 

(2)

This Paragraph (2) shall apply only to Units issued on or after July 1,

2000.  In the event a Participant

exercises a Unit without acquiring the same or a greater number of shares of

the Company’s common stock through the exercise of Corresponding Stock Options

and on such date the exercise price of the Corresponding Stock Options is more

than the Per Share Value, then the value of each Unit exercised, as otherwise

determined under Section 3.3, shall be reduced, on a dollar-for-dollar basis,

by the excess of the per share exercise price of the Corresponding Stock

Options over the Per Share Value on the date on which the Unit is exercised.”

 

All other provisions of the

Plan shall remain the same.

 

IN WITNESS WHEREOF, Duke

Realty Services Limited Partnership has executed this Amendment One to the 1995

Dividend Increase Unit Plan of Duke Realty Services Limited Partnership (as

Amended and Restated Effective October 1, 1999) this 1st day of June, 2000, but

effective as of the dates specified herein.

 

3

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