Document:

ACC, Inc. 2004 Incentive Award Plan

 Exhibit 10.2 
  
 AMERICAN CAMPUS COMMUNITIES, INC. 
 2004 INCENTIVE AWARD PLAN 
  
 Section 1. PURPOSE. 
  
 The Plan
is intended as an incentive to improve the performance, encourage the continued employment and increase the proprietary interest of certain directors and employees of the Company or its Affiliates, participating in the Plan. The Plan is designed to
grant such directors and employees the opportunity to share in the Company’s long-term success through stock ownership and to afford them the opportunity for additional compensation related to the value of Stock of the Company. It is intended
that certain options granted under this Plan may qualify as “incentive stock options” under Section 422 of the Code. 
  
 Section 2. DEFINITIONS. 
  
 (a) “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as those terms
are defined in Sections 424(e) and (f), respectively, of the Code. 
  
 (b) “Annual Director Amount” means an amount determined by the Committee from time to time, which on effective date of the Plan shall equal $25,000. 
  
 (c) “Award” means any right granted under the Plan, including any Incentive Stock Option, Nonqualified
Stock Option, Restricted Stock, Restricted Stock Unit, PIU or other Stock-based award. 
  
 (d) “Board” means the Board of Directors of the Company. 
  
 (e) “Cause” means, in the absence of any employment agreement between a Participant and the Company otherwise defining Cause, (i)
incompetence, fraud, personal dishonesty, embezzlement or acts of gross negligence or gross misconduct on the part of Participant in the course of his or her employment or services, (ii) a Participant’s engagement in conduct that is materially
injurious to the Company or an Affiliate, (iii) a Participant’s conviction by a court of competent jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony, or (y) any other criminal charge (other than minor
traffic violations) involving dishonesty or which could reasonably be expected to have a material adverse impact on the Company’s or an Affiliate’s reputation or business; (iv) public or consistent drunkenness by a Participant or his
illegal use of narcotics (or other restricted substances) which is, or could reasonably be expected to become, materially injurious to the reputation or business of the Company or an Affiliate or which impairs, or could reasonably be expected to
impair, the performance of a Participant’s duties to the Company or an Affiliate; or (v) willful failure by a Participant to follow the lawful directions of a superior officer or the Board. In the event there is an employment agreement between
a Participant and the Company defining Cause, “Cause” shall have the meaning provided in such agreement. 

 (f) “Change in Control” shall mean: 
  
 (i) The acquisition by any individual, entity or group (other than the
Company or any employee benefit plan of the Company) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934) of securities representing more than 50% of the voting securities of the Company
entitled to vote generally in the election of directors, determined on a fully-diluted basis (“Company Voting Securities”); provided, however, that such acquisition shall not constitute a Change in Control hereunder if
a majority of the holders of the Company Voting Securities immediately prior to such acquisition retain directly or through ownership of one or more holding companies, immediately following such acquisition, a majority of the voting securities
entitled to vote generally in the election of directors of the successor entity; 
  
 (ii) The date upon which individuals who as of the date hereof constitute a majority of the Board (the “Incumbent Board”) cease to constitute at least a majority of the Board, provided, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board; or 
  
 (iii) Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless,
following such Business Combination, all or substantially all of the individuals or entities who were the beneficial owners, respectively, of the Company Voting Securities immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of, respectively, the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without
limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries). 
  
 (g) “Code” means the Internal Revenue Code of 1986, as
amended. 
  
 (h) “Committee” means the Board or
such other committee of at least two persons as the Board may appoint to administer the Plan; provided, however, upon and after the time that a director, officer or stockholder of the Company first becomes subject to Section 16(b) of the Exchange
Act, each member of the Committee shall, if practicable, be a “nonemployee director” within the meaning of the rules promulgated under Section 16(b) and an “outside director” within the meaning of U.S. Treas. Regs.
§1.162-27(e)(3). 
  
 (i) “Company” means
American Campus Communities, Inc., a Maryland corporation. 
  
 (j)
“Director” means any non-employee director of the Board or any non-employee director of a board of directors of an Affiliate. 
  
 (k) “Disability” means the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code. 
  

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 (l) “Disqualifying Disposition” means any disposition (including any sale) of Stock
acquired by exercise of an Incentive Stock Option made within the period which is (a) two years after the date the Participant was granted the Incentive Stock Option or (b) one year after the date the Participant acquired Stock by exercising the
Incentive Stock Option. 
  
 (m) “Dividend
Equivalents” shall have the meaning set forth in Section 8 hereof. 
  
 (n) “Eligible Persons” means any (i) Employee or (ii) Director. 
  
 (o) “Employee” means any person employed by the Company or an Affiliate. 
  
 (p) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (q) “Expiration Date” means the date upon which the term of
an Option, as determined under Section 6(a)(i) hereof, expires. 
  
 (r) “Fair Market Value” means (i) prior to an IPO, the fair market value per share of Stock, on a fully diluted basis, determined by the Board in good faith, (ii) at the time of an IPO, the per share price to the public in
such IPO less any per share underwriting discount, and (iii) after an IPO, (A) if the Stock is listed on a national securities exchange, the mean between the highest and lowest sale prices reported as having occurred on the primary exchange with
which the Stock is listed and traded on the date prior to such date, or, if there is no such sale on that date, then on the last preceding date on which such a sale was reported, or (B) if the Stock is not listed on any national securities exchange
but is quoted in the National Market System of the National Association of Securities Dealers Automated Quotation System on a last sale basis, the average between the high bid price and low ask price reported on the date prior to such date, or, if
there is no such sale on that date then on the last preceding date on which such a sale was reported. If, after an IPO, the Stock is not quoted on NASDAQ-NMS or listed on an exchange, or representative quotes are not otherwise available, the Fair
Market Value shall mean the amount determined by the Board in good faith to be the fair market value per share of Stock, on a fully diluted basis. 
  
 (s) “Initial Director Amount” means an amount determined by the Committee from time to time, which on effective date of the Plan shall
equal $25,000. 
  
 (t) “IPO” means an initial
public offering of the Stock registered under the Securities Act pursuant to an effective registration statement. 
  
 (u) “IPO Date” means the effective date of the IPO. 
  
 (v) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code and the regulations promulgated thereunder. 
  
 (w) “Nonqualified Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 
  

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 (x) “Option” means an Incentive Stock Option or a Nonqualified Stock Option granted
pursuant to the Plan. 
  
 (y) “Option Agreement”
means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Option grant. 
  
 (z) “Participant” means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an
outstanding Award. 
  
 (aa) “Profits Interest
Units” or “PIUs” shall have the meaning set forth in the limited partnership agreement, as amended, of American Campus Communities Operating Partnership LP. 
  
 (bb) “Plan” means the American Campus Communities, Inc. 2004 Incentive Award Plan. 
  
 (cc) “Restricted Stock” means shares of Stock issued or
transferred to a Participant subject to forfeiture and the other restrictions set forth in Section 7 hereof. 
  
 (dd) “Restricted Stock Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of
an individual Restricted Stock grant. 
  
 (ee) “Restricted
Stock Unit” means a notional unit representing the right to receive one share of Stock on the Settlement Date. 
  
 (ff) “Restricted Stock Unit Agreement” means a written agreement between the Company and a Participant evidencing the terms and
conditions of an individual Restricted Stock Unit grant. 
  
 (gg)
“Securities Act” means the Securities Act of 1933, as amended. 
  
 (hh) “Settlement Date” shall have the meaning set forth in Section 8 hereof. 
  
 (ii) “Stock” means the common stock of the Company, par value $.01 per share. 
  
 Section 3. ADMINISTRATION. 
  
 (a) General. The Plan shall be administered by the Committee.

  
 (b) Powers of the Committee. Subject to the provisions
of the Plan, the Committee shall have sole authority, in its absolute discretion: 
  
 (i) To determine from time to time which of the Eligible Persons shall be granted Awards, when and how each Award shall be granted, what type or combination of types of Award shall be granted, the provisions of each
Award granted (which need not be identical), including the time or times when a person shall be permitted to receive Stock pursuant to an Award, and the number of shares of Stock with respect to which an Award shall be granted to each such person;

  

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 (ii) To construe and interpret the Plan and Awards granted under it, and to establish, amend and revoke
rules and regulations for its administration; 
  
 (iii) To amend
the Plan or an Award as provided in Section 19; and 
  
 (iv) To
exercise such powers and to perform such acts as the Committee deems necessary or expedient to promote the best interests of the Company which are not in conflict with the provisions of the Plan. 
  
 (c) Delegation of Authority. The Committee may delegate to one or more
of its members, agents or to officers or managers of the Company, such administrative duties under this Section 3 as it may deem advisable. 
  
 (d) Committee Determinations. All determinations, interpretations and constructions made by the Committee in good faith shall not be subject to
review by any person and shall be final, binding and conclusive on all persons. 
  
 Section 4. STOCK SUBJECT TO THE PLAN. 
  
 (a) Share Reserve. Subject to Section 11 hereof relating to adjustments, the total number of shares of Stock which may be granted pursuant to
Awards hereunder shall not exceed, in the aggregate, 1,210,000 shares of Stock. Grants made in the form of PIUs will reduce the number of shares of Stock available for grant on a one-for-one basis. 
  
 (b) Source. The stock to be granted or optioned under the Plan shall
be shares of authorized but unissued Stock or previously issued shares of Stock reacquired by the Company on the open market or by private purchase. 
  
 (c) Reversion of Shares. If any Award shall for any reason expire, be forfeited or otherwise terminate, in whole or in part, the shares of Stock
not acquired under such Award shall revert to and again become available for issuance under the Plan. 
  
 (d) 162(m) Limitation. Subject to the provisions of Section 11 relating to adjustments upon changes in the shares of Stock, no Employee shall be
eligible to be granted Options covering more than 750,000 shares of Stock during any calendar year. This subsection (d) shall not apply prior to the IPO Date and, following the IPO Date, this subsection (d) shall not apply until (i) the earliest of:
(1) the first material modification of the Plan (including any increase in the number of shares of Stock reserved for issuance under the Plan in accordance with Section 4(a), but subject to Section 11); (2) the issuance of all of the shares of Stock
reserved for issuance under the Plan; (3) the expiration of the Plan; or (4) the first meeting of stockholders at which directors are to be elected that occurs after the close of the third calendar year following the calendar year in which occurred
the first registration of an equity security under Section 12 of the Exchange Act; or (ii) such other date required by Section 162(m) of the Code and the rules and regulations promulgated thereunder. 
  

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 Section 5. ELIGIBILITY. 
  
 (a) General. Participation shall be limited to Eligible Persons who
have received written notification from the Committee, or from a person designated by the Committee, that they have been selected to participate in the Plan. Except in the case of Incentive Stock Options, Awards may be granted to Employees,
Directors and Consultants. 
  
 (b) Incentive Stock Option
Limitation. Incentive Stock Options may be granted only to Employees. 
  
 Section 6. OPTIONS. 
  
 (a) General. Options granted hereunder shall be in such form and shall contain such terms and conditions as the Committee shall deem appropriate. All Options shall be separately designated Incentive Stock
Options or Nonqualified Stock Options at the time of grant, and, if certificates are issued, unless otherwise determined by the Committee, a separate certificate or certificates will be issued for shares of Stock purchased on exercise of each type
of Option. The provisions of separate Options shall be set forth in an Option Agreement, which agreements need not be identical, and, except as otherwise provided by the Committee in the Option Agreement, each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 
  
 (i) Term. Subject to Section 6(b) hereof in the case of Incentive Stock Options, the term of each Option shall be set by the Committee at the time
of grant; provided, however, that no Option granted hereunder shall be exercisable after the expiration of ten (10) years from the date it was granted. 
  
 (ii) Exercise Price. Subject to Section 6(b) hereof in the case of Incentive Stock Options, the exercise price per share of Stock for each Option
shall be set by the Committee at the time of grant but shall not be less than eighty-five percent (85%) of the Fair Market Value per share as of the date of grant. 
  
 (iii) Payment for Stock. Payment for shares of Stock acquired pursuant to Options granted hereunder shall be made in
full, upon exercise of the Options (i) in immediately available funds in United States dollars, by certified or bank cashier’s check, (ii) by surrender to the Company of shares of Stock which have either (a) have been held by the Participant
for at least six-months, or (b) were acquired from a person other than the Company, (iii) by a combination of (i) and (ii), or (iv) by any other means approved by the Committee. Anything herein to the contrary notwithstanding, the Company shall not
directly or indirectly extend or maintain credit, or arrange for the extension of credit, in the form of a personal loan to or for any director or executive officer of the Company through the Plan in violation of Section 402 of the Sarbanes-Oxley
Act of 2002 (“Section 402 of SOX”), and to the extent that any form of payment would, in the opinion of the Company’s counsel, result in a violation of Section 402 of SOX, such form of payment shall not be available.

  
 (iv) Vesting. Options shall vest and become
exercisable in such manner and on such date or dates set forth in the Option Agreement, as may be determined by the Committee; provided, however, that notwithstanding any vesting dates contained herein or 
  

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 otherwise set by the Committee, the Committee may in its sole discretion accelerate the vesting of any Option, which
acceleration shall not affect the terms and conditions of any such Option other than with respect to vesting. Unless otherwise specifically determined by the Committee, the vesting of an Option shall occur only while the Participant is employed or
rendering services to the Company or its Affiliates and all vesting shall cease upon a Participant’s termination of employment or services for any reason. If an Option is exercisable in installments, such installments or portions thereof which
become exercisable shall remain exercisable until the Option expires. 
  
 (v) Transferability of Options. An Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant; provided, however,
that the Participant may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Participant, shall thereafter be entitled to exercise the Option.
Notwithstanding the foregoing, a Nonqualified Stock Option shall be transferable to the extent provided in the Option Agreement or otherwise determined by the Committee. 
  
 (vi) Termination as an Employee, Director or Consultant. Except as may otherwise be provided by the Committee in the
Option Agreement: 
  
 (A) If prior to the
Expiration Date, a Participant’s employment or service, as applicable, with the Company or an Affiliate, as applicable, terminates for any reason other than (I) by the Company for Cause, or (II) by reason of the Participant’s death or
Disability, (1) all vesting with respect to the Options shall cease, (2) any unvested Options shall expire as of the date of such termination, and (3) any vested Options shall remain exercisable until the earlier of the Expiration Date or the date
that is ninety (90) days after the date of such termination. 
  
 (B) If prior to the Expiration Date, a Participant’s employment or service, as applicable, with the Company or an Affiliate, as applicable, terminates by reason of such Participant’s death or Disability, (i)
all vesting with respect to the Options shall cease, (ii) any unvested Options shall expire as of the date of such termination, and (iii) any vested Options shall expire on the earlier of the Expiration Date or the date that is twelve (12) months
after the date of such termination due to death or Disability of the Holder. In such events, the Options shall remain exercisable by the person or persons to whom a Participant’s rights under the Options pass by will or the applicable laws of
descent and distribution until its expiration, but only to the extent the Options were vested by such Participant at the time of such termination due to death or Disability. 
  
 (C) If prior to the Expiration Date, a Participant’s employment or service, as applicable, with the
Company or an Affiliate, as applicable, is terminated by the Company for Cause, all Options (whether or not vested) shall immediately expire as of the date of such termination. 
  

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 (b) Special Provisions Applicable to Incentive Stock Options. 
  
 (i) Exercise Price of Incentive Stock Options. Subject to the
provisions of subsection (ii) hereof, the exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Stock subject to the Option on the date the Option is granted. 
  
 (ii) Ten Percent (10%) Shareholders. No Incentive Stock Option may be
granted to an Employee who, at the time the option is granted, owns directly, or indirectly within the meaning of Section 424(d) of the Code, stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of
the Company or of any parent or subsidiary thereof, unless such option (A) has an exercise price of at least one hundred ten percent (110%) of the Fair Market Value on the date of the grant of such option; and (B) cannot be exercised more than five
years after the date it is granted. 
  
 (iii) $100,000
Limitation. To the extent the aggregate Fair Market Value (determined as of the date of grant) of Stock for which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all plans of the
Company and its Affiliates) exceeds $100,000, such excess Incentive Stock Options shall be treated as Nonqualified Stock Options. 
  
 (iv) Disqualifying Dispositions. Each Participant who receives an Incentive Stock Option must agree to notify the Company in writing immediately
after the Participant makes a Disqualifying Disposition of any Stock acquired pursuant to the exercise of an Incentive Stock Option. 
  
 Section 7. RESTRICTED STOCK. 
  
 (a) General. Restricted Stock granted hereunder shall be in such form and shall contain such terms and conditions as
the Committee shall deem appropriate. The terms and conditions of each Restricted Stock grant shall be evidenced by a Restricted Stock Agreement, which agreements need not be identical. Subject to the restrictions set forth in Section 7(b), except
as otherwise in the applicable Restricted Stock Agreement, the Participant shall generally have the rights and privileges of a stockholder as to such Restricted Stock, including the right to vote such Restricted Stock. At the discretion of the
Committee, cash dividends and stock dividends, if any, with respect to the Restricted Stock may be either currently paid to the Participant or withheld by the Company for the Participant’s account. A Participant’s Restricted Stock
Agreement may provide that cash dividends or stock dividends so withheld shall be subject to forfeiture to the same degree as the shares of Restricted Stock to which they relate. Except as otherwise determined by the Committee, no interest will
accrue or be paid on the amount of any cash dividends withheld. 
  
 (b) Restrictions on Transfer. In addition to any other restrictions set forth in a Participant’s Restricted Stock Agreement, until such time that the Restricted Stock has vested pursuant to the terms of the Restricted Stock
Agreement, which vesting the Committee may in its sole discretion accelerate at any time, the Participant shall not be permitted to sell, transfer, pledge, or otherwise encumber the Restricted Stock. Notwithstanding anything contained herein to the
contrary, the Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances arising after the date of the
Restricted Stock Award, such action is appropriate. 
  

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 (c) Certificates. Stock certificates for Restricted Stock shall be registered in the name of the
Participant but shall be appropriately legended and returned to the Company by the Participant, together with a stock power, endorsed in blank by the Participant. Notwithstanding the foregoing, the Committee may determine, in its sole discretion,
that the Restricted Stock shall be held in book entry form rather than delivered to the Participant pending the release of the applicable restrictions. 
  
 (d) Legends. Each certificate representing Restricted Stock awarded under the Plan shall bear a legend in the following form until the end of the
applicable restricted period with respect to such Stock: 
  
 “Transfer of this certificate and the shares represented hereby is restricted pursuant to the terms of a Restricted Stock Agreement, dated as of
                    , between American Campus Communities, Inc. and
                            . A copy of such Agreement is on file at the offices of American
Campus Communities, Inc.” 
  
 Stop transfer orders shall be
entered with the Company’s transfer agent and registrar against the transfer of legended securities. 
  
 Section 8. RESTRICTED STOCK UNITS 
  
 (a) General. Restricted Stock Units granted hereunder shall be in
such form and shall contain such terms and conditions as the Committee shall deem appropriate. The terms and conditions of each Restricted Stock Unit grant shall be evidenced by a Restricted Stock Unit Agreement. No shares of Stock shall be issued
at the time a Restricted Stock Unit grant is made, and the Company will not be required to set aside a fund for the payment of any such Award; provided, however, that for purposes of Section 4(a) hereof, a share of Stock shall be deemed awarded at
the time of grant. Recipients of Restricted Stock Units may, in the sole discretion of the Committee, be entitled to an amount equal to the cash dividends paid by the Company upon one share of Stock for each Restricted Stock Unit then credited to
such recipient’s account (“Dividend Equivalents”). To the extent a Participant receiving Restricted Stock Units is entitled to Dividend Equivalents, the Committee shall, in its sole discretion, determine whether to credit to
the account of, or to currently pay to, such Participant the Dividend Equivalents. A Participant’s Restricted Stock Unit Agreement may provide that Dividends Equivalents shall be subject to forfeiture to the same degree as the shares of
Restricted Stock Units to which they relate. Except as otherwise determined by the Committee, no interest will accrue or be paid on Dividend Equivalents credited to a recipient’s account. 
  
 (b) Conditions of Grant. Restricted Stock Units awarded to any
eligible individual shall be subject to (i) forfeiture until the expiration of the restricted period, to the extent provided in the Restricted Stock Unit Agreement, and to the extent such Awards are forfeited, all rights of the recipient to such
Awards shall terminate without further obligation on the part of the Company, and (ii) such other terms and conditions as may be set forth in the applicable Award agreement. Notwithstanding anything contained herein to the contrary, the 

 

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 Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock Units whenever it may
determine that, by reason of changes in applicable laws or other changes in circumstances arising after the date of the Restricted Stock Unit Award, such action is appropriate. 
  
 (c) Settlement of Restricted Stock Units. Upon a date or dates on or following the expiration of the restricted
period, as may be set forth in a Participant’s Restricted Stock Unit Agreement, as shall be determined by the Committee (the “Settlement Date(s)”), unless earlier forfeited, the Company shall settle the Restricted Stock Unit by
delivering (i) a number of shares of Stock equal to the number of Restricted Stock Units then vested and not otherwise forfeited, and (ii) if applicable, a number of shares of Stock having a value equal to any unpaid Dividend Equivalents accrued
with respect to the Restricted Stock Units. The Company may, in the Committee’s sole discretion, settle a Restricted Stock Unit Award in cash in lieu of the delivery of shares of Stock or partially in cash and partially in shares of Stock. A
settlement in cash shall be based on the value of the shares of Stock otherwise to be delivered on the Settlement Date. 
  
 (d) Creditor’s Rights. A holder of Restricted Stock Units shall have no rights other than those of a general creditor of the Company.
Restricted Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Restricted Stock Unit Agreement. 
  
 (e) Automatic Grants of Restricted Stock Units to Directors. 
  
 (i) Initial Grants. Upon the IPO, each Director at such time shall
be automatically granted, without further action by the Board or the Committee, a number of Restricted Stock Units equal to the Initial Director Amount divided by the per share offering price of the Stock on the IPO. Thereafter, each Director who is
initially elected as such after the IPO shall be automatically granted, without further action by the Board or the Committee, a number of Restricted Stock Units equal to the Initial Director Amount divided by the Fair Market Value per share of Stock
on the date of grant. 
  
 (ii) Annual Grants. Thereafter,
for the remainder of the term of the Plan and provided he or she is reelected as a Director, on the date of each of the Company’s Annual Meeting of Stockholders, each Director shall be automatically granted without further action by the Board
or the Committee a number of shares of Restricted Stock equal to the Annual Director Amount divided by the Fair Market Value per share of the Stock on the date of grant. 
  
 (iii) Terms and Conditions of Grant. Restricted Stock Units granted to Non-Employee Directors pursuant to this
subsection (e) shall (A) have a Settlement Date on the third anniversary of the date of grant of such Restricted Stock Units, and (B) be entitled to Dividend Equivalents, which shall be credited to the account of such Non-Employee Director and paid
upon the Settlement Date. 
  
 Section 9. PROFITS
INTEREST UNITS 
  
 (a) General. PIUs granted hereunder shall be in such form and shall contain such terms and conditions as the Committee shall deem appropriate. The terms and conditions of each PIU grant shall be evidenced by an Award agreement. For
purposes of Section 4(a) hereof, one share of Stock shall be deemed awarded at the time of grant for each PIU granted. 
  

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 (b) Conditions of Grant. PIUs awarded to any eligible individual shall be subject to (i)
forfeiture until the expiration of the restricted period, to the extent provided in the Award agreement, and to the extent such Awards are forfeited, all rights of the recipient to such Awards shall terminate without further obligation on the part
of the Company, and (ii) such other terms and conditions as may be set forth in the applicable Award agreement. Notwithstanding anything contained herein to the contrary, the Committee shall have the authority to remove any or all of the
restrictions on the PIUs whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances arising after the date of the PIU Award, such action is appropriate. 
  
 Section 10. OTHER STOCK-BASED
AWARDS. 
  
 The Committee may grant any other
cash, stock or stock-related Awards to any eligible individual under this Plan that the Committee deems appropriate, including, but not limited to, stock appreciation rights, limited stock appreciation rights, phantom stock awards and Stock bonuses,
and may grant Stock or PIUs to eligible individuals in settlement of bonus awards under the Company’s 2004 Outperformance Bonus Program. Any such Awards and any related agreements shall contain such terms and conditions as the Committee deems
appropriate, which Awards and agreements need not be identical. With respect to any benefit under which shares of Stock are or may in the future be issued for consideration other than prior services, the amount of such consideration shall not be
less than the amount (such as the par value of such shares) required to be received by the Company in order to comply with applicable state law. 
  
 Section 11. ADJUSTMENT FOR RECAPITALIZATION, MERGER, ETC. 
  
 (a) Capitalization Adjustments. The aggregate number of shares of
Stock which may be granted or purchased pursuant to Awards granted hereunder, the number of shares of Stock covered by each outstanding Award, the maximum number of shares of Stock with respect to which any one person may be granted Options in any
calendar year, and the price per share thereof in each such Award may be subject to adjustment or substitution, as determined by the Committee in its sole discretion, as to the number, price or kind of a share of Stock or other consideration subject
to such Awards or as otherwise determined by the Committee to be equitable (i) in the event of changes in the outstanding Stock or in the capital structure of Company by reason of stock dividends, stock splits, reverse stock splits,
recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or other relevant changes in capitalization occurring after the date of grant of any such Award, (ii) in the event of any change in applicable laws or any change
in circumstances which results in or would result in any substantial dilution or enlargement of the rights granted to, or available for, Participants in the Plan, or (iii) for any other reason which the Committee, in its sole discretion, determines
otherwise warrants equitable adjustment because it interferes with the intended operation of the Plan. Any adjustment shall be conclusively determined by the Committee. 
  
 (b) Corporate Events. Notwithstanding the foregoing, except as may otherwise be provided in an Award agreement, in
the event of (i) a merger or consolidation 
  

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 involving the Company in which the Company is not the surviving corporation, (ii) a merger or consolidation involving the
Company in which the Company is the surviving corporation but the holders of shares of Stock receive securities of another corporation and/or other property, including cash, (iii) the sale of all or substantially all of the assets of the Company,
(iv) the reorganization or liquidation of the Company or (v) a Change in Control (a “Corporate Event”), in lieu of providing the adjustment set forth in subsection (a) above, the Committee may, in its discretion, provide that all
outstanding Awards shall terminate as of the consummation of such Corporate Event, and (x) accelerate the exercisability of, or cause all vesting restrictions to lapse on, all outstanding Awards to a date at least ten days prior to the date of such
Corporate Event and/or (y) provide that holders of Awards will receive a payment in respect of cancellation of their Awards based on the amount of the per share consideration being paid for the Stock in connection with such Corporate Event, and in
the case of Options or other Awards with an exercise price or similar provision, less such applicable exercise price, such payment to be made in cash, or, in the sole discretion of the Committee, in such other consideration necessary for a holder of
an Award to receive property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to such transaction, the holder of the number of shares of Stock
covered by the Award at such time; provided, that if such consideration received in the transaction is not solely equity securities of the successor entity, the Committee may, with the consent of the successor entity, provide for the consideration
to be received in respect of the Award to be solely equity securities of the successor entity equal to the Fair Market Value of the per share consideration received by holders of Stock in the Corporate Event. 
  
 (c) Fractional Shares. Any such adjustment may provide for the
elimination of any fractional share which might otherwise become subject to an Award. 
  
 Section 12. CHANGE IN CONTROL 
  
 Except as otherwise determined by the Committee, in its discretion, at the time of grand and reflected in a particular Award agreement, in the event of a
Change in Control, Options shall become immediately exercisable with respect to 100% of the shares subject to such Options, shares of Restricted Stock become 100% vested, Restricted Stock Units shall be settled as if the Settlement Date occurred
immediately prior to such Change in Control, and all other Awards shall become fully vested and/or payable to the fullest extent of any Award or portion thereof that has not then expired and any restrictions with respect thereto shall expire. The
Committee shall have full authority and discretion to interpret this Section 12 and to implement any course of action with respect to any Award so as to satisfy the intent of this provision. 
  
 Section 13. USE OF
PROCEEDS. 
  
 The proceeds received from the
sale of Stock pursuant to the Plan shall be used for general corporate purposes. 
  

 - 12 - 

 Section 14. RIGHTS AND PRIVILEGES AS
A STOCKHOLDER. 
  
 Except as
otherwise specifically provided in the Plan, no person shall be entitled to the rights and privileges of stock ownership in respect of shares of Stock which are subject to Awards hereunder until such shares have been issued to that person.

  
 Section 15. EMPLOYMENT OR
SERVICE RIGHTS. 
  
 No
individual shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected for a grant of any other Award. Neither the Plan nor any action taken hereunder shall be construed as
giving any individual any right to be retained in the employ or service of the Company or an Affiliate. 
  
 Section 16. COMPLIANCE WITH LAWS. 
  
 (a) The obligation of the Company to make payment of Awards in Stock or otherwise shall be subject to all applicable laws,
rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell and shall be
prohibited from offering to sell or selling any shares of Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the Company has
received an opinion of counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with.
The Company shall be under no obligation to register for sale or resale under the Securities Act any of the shares of Stock to be offered or sold under the Plan or any shares of Stock issued upon exercise of Options. If the shares of Stock offered
for sale or sold under the Plan are offered or sold pursuant to an exemption from registration under the Securities Act, the Company may restrict the transfer of such shares and may legend the Stock certificates representing such shares in such
manner as it deems advisable to ensure the availability of any such exemption. 
  
 (b) Notwithstanding anything contained in the Plan to the contrary, no Participant will be permitted to acquire, or have any rights to acquire, shares of stock if such acquisition would be prohibited by the Stock
ownership limits contained in the Company’s Charter. 
  
 Section 17. MARKET STANDOFF AGREEMENT. 
  
 As a condition of receiving any Award hereunder, the Participant agrees that in connection with any registration of the Stock and upon the request of the
Committee or the underwriters managing any public offering of the Stock, the Participant will not sell or otherwise dispose of any Stock without prior written consent of the Committee or such underwriters, as the case may be, for a period of time
(not to exceed 180 days) from the effective date of such registration as the Committee or the underwriters may specify for employee-shareholders generally. 
  

 - 13 - 

 Section 18. WITHHOLDING OBLIGATIONS. 
  
 As a condition to the exercise or vesting, as applicable, of any Award, the
Committee may require that a Participant satisfy, through deduction or withholding from any payment of any kind otherwise due to the Participant, or through such other arrangements as are satisfactory to the Committee, the minimum amount of all
Federal, state and local income and other taxes of any kind required or permitted to be withheld in connection with such vesting or exercise. The Committee, in its discretion, may permit shares of Stock to be used to satisfy tax withholding
requirements and such shares shall be valued at their Fair Market Value as of the settlement date of the Award. For purposes of this Section 18, the term “Company” shall be deemed to mean any Affiliate that may have a tax withholding
obligation due to its relationship with a Participant. 
  
 Section 19. AMENDMENT OF THE PLAN OR AWARDS. 
  
 (a) Amendment of Plan. The Board at any time, and from time to time, may amend the Plan; provided, however, that without further stockholder
approval the Board shall not make any amendment to the Plan which would increase the maximum number of shares of Stock which may be issued pursuant to Awards under the Plan, except as contemplated by Section 11 hereof, or, following the IPO Date,
which would otherwise violate the shareholder approval requirements of the national securities exchange on which the Stock is listed or Nasdaq, as applicable. 
  

(b) No Impairment of Rights. Rights under any Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan
unless the Participant consents in writing. 
  
 (c) Amendment
of Stock Awards. The Committee, at any time, and from time to time, may amend the terms of any one or more Awards; provided, however, that the rights under any Award shall not be impaired by any such amendment unless the Participant consents in
writing. 
  
 Section 20. TERMINATION
OR SUSPENSION OF THE PLAN. 
  
 The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the date the Plan is adopted by the Board or approved by the stockholders of the Company, whichever is
earlier. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated. 
  
 Section 21. EFFECTIVE DATE OF THE PLAN. 
  
 The Plan is effective as of July 8, 2004, the date upon which the Board
approved the Plan. 
  

 - 14 - 

 Section 22. MISCELLANEOUS. 
  
 (a) No Liability of Committee Members. No member of the Committee
shall be personally liable by reason of any contract or other instrument executed by such member or on his behalf in his capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify and
hold harmless each member of the Committee and each other employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense
(including counsel fees) or liability (including any sum paid in settlement of a claim) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or willful bad faith; provided,
however, that approval of the Board shall be required for the payment of any amount in settlement of a claim against any such person. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to
which such persons may be entitled under the Company’s Articles of Incorporation or By-Laws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
  
 (b) Payments Following Accidents or Illness. If the Committee shall
find that any person to whom any amount is payable under the Plan is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or his estate (unless a prior claim therefor has been
made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to his spouse, child, relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a
proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor. 
  
 (c) Governing Law. The Plan shall be governed by and construed in accordance with the internal laws of the State of
Texas without reference to the principles of conflicts of laws thereof. 
  
 (d) Funding. No provision of the Plan shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or
otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no
rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other employees
under general law. 
  
 (e) Reliance on Reports. Each member
of the Committee and each member of the Board shall be fully justified in relying, acting or failing to act, and shall not be liable for having so relied, acted or failed to act in good faith, upon any report made by the independent public
accountant of the Company and its Affiliates and upon any other information furnished in connection with the Plan by any person or persons other than himself. 
  

 - 15 - 

 (f) Titles and Headings. The titles and headings of the sections in the Plan are for convenience
of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings shall control. 
  
 *    *    * 
  

 - 16 -ACC, Inc. 2004 Outperformance Bonus Plan

 Exhibit 10.3 
  
 AMERICAN CAMPUS COMMUNITIES, INC. 
 2004 OUTPERFORMANCE BONUS PROGRAM 
  

	 	1.	PURPOSE 

  
 The Program provides long-term incentives to Key Employees of the Company whom the Committee believes will make substantial contributions
to the Company. Its purposes are to attract, retain and motivate Key Employees of the Company and to promote the long-term growth and profitability of the Company. 
  

	 	2.	DEFINITIONS 

  
 (a) “Affiliate” shall have the meaning set forth in the Incentive Plan. 
  
 (b) “Alternate Performance Measure” means
Total Shareholder Return of at least a 12% per annum (on a cumulative, non-compounded basis) and such return is at or above the 60th percentile of the Total Shareholder Return achieved by the Peer Group Companies. 
  
 (c) “Board” means the Board of Directors of
the Company. 
  
 (d) “Bonus
Award” means, as to a Key Employee, equal to the Bonus Pool multiplied by a fraction, where the numerator equals the number of vested Units held by such Key Employee as of the Determination Date, and the denominator equals the total number
of Units allocated under the Program that have not been forfeited prior to such Determination Date. 
  
  (e) “Bonus Pool” means an amount equal to the Fair Market Value of the number of shares of Stock on the Determination
Date equaling the difference between (x) and (y), where (x) equals 367,682 and (y) equals the sum of (A) the number of shares of Stock distributed in connection with a Bonus Award paid prior to the Determination Date plus (B) the amount of cash
distributed in connection with a Bonus Award paid prior to the Determination Date divided by the Fair Market Value of the Stock on the Determination Date to which such cash payment of the Bonus Award is attributable. No dividend rights or dividend
equivalent payments will accrue with respect to any shares of Stock underlying the Bonus Pool. 
   
 (f) “Cause” means, in the absence of any employment agreement between a Key Employee and the Company otherwise defining
Cause, (i) incompetence, fraud, personal dishonesty, embezzlement or acts of gross negligence or gross misconduct on the part of Key Employee in the course of his or her employment or services, (ii) a Key Employee’s engagement in conduct that
is materially injurious to the Company or an Affiliate, (iii) a Key Employee’s conviction by a court of competent jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony, or (y) any other criminal charge
(other than minor traffic violations) involving dishonesty or which could reasonably be expected to have a material adverse impact on the Company’s or an Affiliate’s reputation or business; (iv) public or consistent drunkenness by a Key
Employee or his illegal use of narcotics (or other restricted substances) which is, or could reasonably be expected to become, materially injurious to the reputation or business of the Company or an Affiliate or which impairs, or could reasonably be

  

 
expected to impair, the performance of a Key Employee’s duties to the Company or an Affiliate; or (v) willful failure by a Key Employee to follow the
lawful directions of a superior officer or the Board. In the event there is an employment agreement between a Key Employee and the Company defining Cause, “Cause” shall have the meaning provided in such agreement. 
  
 (g) “Change in Control” shall have the
meaning set forth in the Incentive Plan. 
  
 (h)
“Committee” means the Board or such other committee of at least two persons as the Board may appoint to administer the Program. 
  
 (i) “Company” means American Campus Communities, Inc., a Maryland corporation. 
  
 (j) “Determination Date” means, with
respect to any Key Employee, the earliest to occur of (i) the date of a Change in Control, (ii) the date of such Key Employee’s termination of employment for any reason, or (iii) the third (3rd) anniversary of the IPO Date. 
  
 (k) “Fair Market Value” shall have the
meaning set forth in the Incentive Plan. 
  
 (l)
“Good Reason” means, in the absence of any employment agreement between a Key Employee and the Company otherwise defining Good Reason, a material diminution is a Key Employee’s duties or responsibilities such that the Key
Employee is no longer functioning as a key employee of the Company. In the event there is an employment agreement between a Key Employee and the Company defining Good Reason, “Good Reason” shall have the meaning provided in such agreement.

  
 (m) “Incentive Plan” means
the Company’s 2004 Incentive Award Plan. 
  
 (n) “IPO Date” shall have the meaning set forth in the Incentive Plan. 
  
 (o) “Key Employee” means each Key Employee designated by the Committee to participate in the Program. 
  
 (p) “Measurement Period” means the period
commencing on the IPO Date and ending on the Determination Date. 
  
 (q) “Operating Partnership” means American Campus Communities Operating Partnership LP. 
  
 (r) “Peer Group Companies” means the group of “peer” companies designated by the Committee in consultation with
the Key Employees. 
  

 (s) “PIU” shall have the meaning set forth in the Incentive Plan.

  
 (t) “Program” means the
American Campus Communities, Inc. 2004 Outperformance Bonus Program. 
  
 (u) “Primary Performance Measure” means Total Shareholder Return of at least a 25% per annum (on a cumulative, non-compounded basis). 
  
 (v) “Stock” means the common stock of the Company, par value $.01 per share. 
  
 (w) “Total Shareholder Return” means the
appreciation in the Fair Market Value of the Stock (or in the case of Peer Group Companies, the common stock of such companies) plus any dividends paid in respect of such Stock (or common stock) during the Measurement Period. 
  
 (x) “Unit” shall have the meaning set forth
in Section 4 hereof. 
  

	 	3.	ADMINISTRATION 

  
 The Program shall be administered by the Committee, which shall have the sole authority, in its absolute discretion, to (i) construe,
interpret and implement the Program, (ii) prescribe, amend and rescind rules and regulations relating to the Program, and (iii) make all other determinations deemed necessary or advisable for the administration of the Program. The determination of
the Committee on all matters relating to the Program or any amounts determinable or payable hereunder shall be final, binding and conclusive. 
  

	 	4.	UNIT ALLOCATION AND VESTING. 

  
 (a) The Bonus Pool shall be allocated amongst Key Employees through units representing one allocable share of the value of the Bonus Pool
(the “Units”). Up to 100 Units may be allocated by the Committee under the Program. 
  
 (b) Units shall initially be unvested, and shall vest on a Key Employee’s Determination Date as follows: 
  
 (i) If the Key Employee’s Determination Date occurs on
the third (3rd) anniversary of the IPO Date, 100% of the Units held by such Key Employee shall vest as of the
Determination Date if either the Primary Performance Measure or the Alternative Performance Measure has been achieved. If neither the Primary Performance Measure nor the Alternative Performance Measure has been achieved as of such Determination
Date, no Units held by such Key Employee shall vest and such Units shall be deemed to have been forfeited. 
  
 (ii) If the Key Employee’s Determination Date occurs on the date of a Change in Control, 100% of the Units held by such Key Employee
shall vest as of the 

  

 
Determination Date if the Primary Performance Measure has been achieved. If the Primary Performance Measure is not achieved, but the Alternative Performance
Measure has been achieved, a number of Units shall vest as of the Determination Date equal to the greater of (x) 50% of the Units held by such Key Employee, or (y) the number of Units held by such Key Employee multiplied by a fraction, the numerator
of which equals the number of days elapsed from the IPO Date, and the denominator of which equals 1095. If neither the Primary Performance Measure nor the Alternative Performance Measure has been achieved as of such Determination Date, no Units held
by such Key Employee shall vest and such Units shall be deemed to have been forfeited. 
  
 (iii) If the Key Employee’s Determination Date occurs on the date of such Key Employee’s termination of employment: 

 
 (1) If such termination is by the Company other than for
Cause, or by the Key Employee with Good Reason, 100% of the Units held by such Key Employee shall vest as of the Determination Date if the Primary Performance Measure has been achieved. If the Primary Performance Measure is not achieved, but the
Alternative Performance Measure has been achieved, a number of Units shall vest as of the Determination Date equal to the greater of (x) 50% of the Units held by such Key Employee, or (y) the number of Units held by such Key Employee multiplied by a
fraction, the numerator of which equals the number of days elapsed from the IPO Date, and the denominator of which equals 1095. If neither the Primary Performance Measure nor the Alternative Performance Measure has been achieved as of such
Determination Date, no Units held by such Key Employee shall vest and such Units shall be deemed to have been forfeited. 
  
 (2) If such termination is by the Company with Cause, or by the Key Employee without Good Reason, no Units held by such Key Employee
shall vest and such Units shall be deemed to have been forfeited. 
  
 (c) Following a Key Employee’s Determination Date, all Units, whether or not then vested, shall be forfeited. 
  

	 	5.	PAYMENT OF THE BONUS AWARD 

  
 (a) A Key Employee’s Bonus Award shall be payable as soon as practicable following such Key Employee’s Determination Date, and
in no event later than one hundred twenty (120) days following such Determination Date. 
  
 (b) The Bonus Award shall be payable in cash; provided, however, that the Committee, in its discretion, may elect to pay the
Bonus Award in shares of Stock, units of the Operating Partnership, PIUs or in similar securities (provided that such issuance will not result in any recognition of taxable income by the Key Employee) valued on the date such Bonus Award 

  

 
is paid to the Key Employee, provided that such securities are available at that time under any of the Company’s existing stock incentive plans.

  
 (c) The payment of any Bonus Award shall be
subject to the payment by the Key Employee to the Company of any federal, state or local taxes required by law to be withheld by the Company. The Company shall have the right to deduct from any payment to be made pursuant to the Program any federal,
state or local taxes required by law to be withheld by the Company. 
  

	 	6.	ASSIGNMENT AND ALIENATION OF BENEFITS 

  
 To the maximum extent permitted by law, a Key Employee’s right or benefits under this Program shall not be subject to anticipation,
alienation, sale, assignment, pledge, encumbrance or charge, and any attempt to anticipate, alienate, sell, assign, pledge, encumber or charge the same shall be void; provided, however, that in the event of a Key Employee’s death,
any such benefit not forfeited upon death shall pass to such Key Employee’s beneficiaries or estate in accordance with the laws of descent and distribution. Except as prohibited by law, payments or benefits payable to or with respect to a Key
Employee pursuant to this Program may be reduced by amounts the Key Employee may owe to the Company, including, without limitation, any amounts owed on account of loans, travel or standing advances, and personal charges on credit cards issued
through the Company. 
  

	 	7.	SUCCESSORS 

  
 In addition to any obligations imposed by law upon any successor to the Company, the Company shall require any successor (whether direct
or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Company to expressly assume the Program and agree to perform obligations hereunder in the same manner and to the same extent
that the Company would be required to perform it if no such succession had taken place. 
  

	 	8.	TERMINATION OR AMENDMENT OF THE PROGRAM 

  
 The Board at any time, and from time to time, may amend, suspend or terminate the Program; provided, however, that the
rights granted to any Key Employee under the Program shall not be impaired by any such amendment unless the Key Employee first consents to such in writing. 
  

	 	9.	MISCELLANEOUS 

  
 (a) The establishment of this Program shall not be construed as granting any Key Employee the right to remain in the employ of the
Company, nor shall this Program be construed as limiting the right of the Company to discharge a Key Employee from employment at any time for any reason whatsoever, with or without Cause. 
  

 (b) The Section headings in this Program are for convenience only; they form no part of
the Program and shall not affect its interpretation. 
  
 (c) This Program shall be governed by and construed in accordance with the laws of the State of Texas, without reference to the principles of conflicts of laws therein. 
  
 (d) No provision of the Program shall require the Company, for the purpose of satisfying any obligations
under the Program, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of the
existence of a segregated or separately maintained or administered fund for such purposes. Key Employees shall have no rights under the Program other than as unsecured general creditors of the Company, except that insofar as they may have become
entitled to payment of additional compensation by performance of services, they shall have the same rights as other employees under general law. 
  
 (e) In no event shall any member of the Committee be personally liable by reason of any contract or other instrument executed by a member
of the Committee or on his or her behalf in his or her capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless such member of the Committee against any cost or
expense (including counsel fees) or liability (including any sum paid in settlement of a claim) arising out of any act or omission to act in connection with the Program unless arising out of such person’s own fraud or bad faith. The foregoing
right of indemnification shall not be exclusive of any other rights of indemnification to which such person may be entitled under the Company’s operating agreement, as a matter of law, or otherwise, or any power that the Company may have to
indemnify him or hold him harmless. 
  
 (f) The
Committee shall be fully justified in relying, acting or failing to act, and shall not be liable for having so relied, acted or failed to act in good faith, upon any report made by the independent public accountant of the Company and upon any other
information furnished in connection with the Program by any person or persons other than such member. 
  
 * * *

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