Document:

Second Amended and Restated Non-Employee Directors Stock Option Plan

 Exhibit 10.49 
  
 BRE PROPERTIES, INC. 
 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN 
  
 THIS NON-QUALIFIED OPTION (“Option” or “Option Agreement”) is granted by BRE Properties, Inc., a Maryland corporation (the “Company”), to the Non Employee Director (“Optionee”)
as of the day of grant indicated on the Summary of Stock Option Grant available from the Benefit Access website. 
  
 WITNESSETH: 
  
 WHEREAS, the Company has duly adopted the Amended and Restated Non-Employee Director Stock Option Plan (the “Plan”), a copy of which (as amended to date) is available from the Benefit Access website; and 
  
 WHEREAS, the Plan provides for various automatic grants of stock options to
each director of the Company who is not an employee; and 
  
 WHEREAS, pursuant to the Plan, Optionee is entitled to the grant of an Option on this date. 
  
 NOW, THEREFORE: 
  
 1. Number of Shares Subject to Option and Option Price. The Company hereby grants to the Optionee a Non-Qualified Stock Option to purchase from the
Company up to the aggregate number of shares of Common Stock, $.01 par value, of the Company (“Shares”) at a price (the “Option Price”) per Share as indicated on the Summary of Stock Option Grant, which Option may be exercised
upon the terms and conditions contained herein. 
  
 2. Option
Period. 
  
 (a) Generally. Subject to the provisions
of Section 2(b) below, the Option hereby granted may be exercised during the period (the “Option Period”) commencing on the date of grant of this Option and terminating at the close of business on the last business day preceding the tenth
anniversary date of this Option Agreement. 
  
 (b) Installment
Exercise. Optionee shall become entitled to purchase one twelfth (1/12) of the Shares covered by this Option on each monthly anniversary date as as indicated on the vesting schedule on the Summary of Stock Option Grant, so that this Option shall
have become fully vested one year after the grant date. 

 (c) Acceleration of Vesting Upon a Change in Control or Merger, Etc. Upon a Change in Control
(including a merger or similar transaction involving a Change of Control), this Option shall become fully vested and exercisable. In the event of a merger or similar transaction in which the Company is not the surviving entity, paragraph 8 of the
Plan provides for either (a) assumption of this Option by the surviving entity (subject to acceleration of vesting if the transaction involves a Change in Control) or (b) acceleration of vesting at least 30 days prior to the transaction and
cancellation in the discretion of the Committee on the effective date of the transaction against payment to the holder of cash in an amount equal to the estimated fair value of the Options so concerned as determined by the Company’s independent
financial advisor. 
  
 (d) Termination of Director Status.
Termination of an Optionee’s status as a director of the Company for any reason, including death or disability, shall not affect the ability of the Optionee or the Optionee’s estate to exercise this Option until the expiration date
thereof, to the extent vested prior to the termination date; and, to the extent that any portion of this Option shall not have vested prior to the date of termination, such unvested portion shall expire on the date upon which Optionee ceases to be a
director. 
  
 3. Exercise of the Option. This Option may be
exercised in whole or in part by delivery to the Company a Cash Letter of Authorization (available from the Benefit Access website) which is a written notice specifying the number of Shares which the Optionee (or the Optionee’s legal
representative) then desires to purchase, accompanied by full payment of the aggregate Option Price for such Shares as provided in Section 4, below. As soon as practicable after receipt of such notice and payment, the Company shall deliver to the
Optionee a certificate or certificates evidencing the Shares issued on exercise of the Option. The notice shall be delivered to the Company at the following address: 
  
                 BRE
Properties, Inc. 
                 44
Montgomery Street, 36th Floor 
                 San Francisco, CA 94104 
                 Attn: Human Resources 
  
 4. Manner of Paying Option Price. The Option Price shall be paid in full (i) in cash or (ii) by delivery to the Company (including delivery by
attestation of ownership) of Shares owned by the Optionee and valued at Fair Market value on the date of exercise; provided that, any such already-owned Shares delivered to pay the exercise price, if originally acquired by Optionee from the Company,
shall have been held at least six months. 
  
 5. Reload
Grants. To the extent Optionee (1) exercises this Option, or any Reload Option granted hereunder, by delivering (or attesting to ownership of) Shares instead of paying cash, or (2) pays income tax withholding by delivering Shares, or having
Shares withheld from exercise, the Optionee, if then still a Non-Employee Director, shall automatically receive on the date of such exercise a new Option (a “Reload Option”) to purchase additional Shares equal to the number of shares so
delivered to, or withheld by, the Company. The Reload Option shall be subject to the same terms and conditions as this Option except that the Reload Option shall have an exercise price equal to the Fair Market Value per Share on the date the Reload
Option is granted, shall expire the same date as the expiration date of the Option so exercised, and shall 
  

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 vest and become exercisable if Optionee holds all of the new Shares purchased (net of Shares withheld to pay taxes) under
this Option until the first to occur of (i) 18 months after grant of the Reload Option or (ii) 12 months before the expiration of the Reload Option. However, a Reload Option shall vest sooner upon the occurrence of any of the following: (a) a Change
in Control, (b) the Optionee’s retirement from the Board, or (c) the Optionee’s death or disability, or personal hardship as determined by the Committee. 
  
 6. Dilution and Other Adjustments. In the event of any change in the outstanding Shares by reason of a share dividend
or share split, recapitalization, merger, consolidation, exchange of shares or other similar change, then the number of Shares subject to the Option and the Option Price of the Option shall be proportionately adjusted. 
  
 7. General Restriction. This Option is subject to the requirement
that, if at any time the Company shall determine that (a) the listing, registration, or qualification of the Shares subject or related thereto upon any securities exchange or under any state or federal law, or (b) the consent or approval of any
government regulatory body is necessary or desirable as a condition of the exercise of the Option, the Option may not be exercised in whole or in part unless and until such listing, registration, qualification, consent or approval shall have been
effected or obtained free of any conditions not acceptable to the Company. 
  
 8. Withholding Taxes. Optionee may elect to pay withholding taxes upon exercise of the Option, through delivery or surrender to the Company of Shares, valued at Fair Market Value, which Optionee owned prior to
exercise or to which Optionee is otherwise entitled upon exercise of this Option; provided that, any such already-owned Shares delivered to pay withholding taxes, if originally acquired by the Optionee from the Company, shall have been held at least
six months. 
  
 9. Non-Assignability. Except as may be
permitted by the Committee in accordance with the rules and regulations promulgated under the Securities Exchange Act of 1934 with respect to any exemption from the short-swing profit provisions of Section 16(b) of that Act, the Option granted
hereby and any rights granted hereunder or pursuant to the Plan are not transferable, except by will or the laws of descent and distribution, and this Option is exercisable during the Optionee’s lifetime only by the Optionee or his or her
guardian or legal representative. 
  
 10. No Right to
Continuing Service. Nothing herein shall confer upon the Optionee the right to continue in the service of the Company nor affect any right which the Company may have to terminate the service of the Optionee. 
  
 11. No Rights as Shareholder. Optionee shall have no rights as a
shareholder with respect to Shares acquired hereunder unless and until the certificates for such Shares are delivered to him or her. 
  
 12. Committee Interpretation Final. The Committee shall have the power, authority and sole discretion to construe, interpret and administer the
Plan and this Option Agreement. The Committee’s decisions construing, interpreting and administering the Plan and this Option Agreement shall be conclusive and binding on all parties. 
  

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 13. Amendment of Plan and Option. This Option is granted pursuant and subject to the Plan.
Capitalized terms not defined in this Option Agreement shall have the meaning set forth in the Plan. The Board of Directors of the Company may, at any time and from time to time, modify, amend, suspend or terminate the Plan in any respect, subject
to Section 11 of the Plan. The Board may also modify or amend the terms and conditions of this Option, subject to the consent of the Optionee and consistent with the provisions of the Plan. 
  
 14. Non-Qualified Option. It is understood that this Option is not an
“incentive stock option” within the meaning of Section 422 of the Internal Revenue Code. The most significant income tax consequence of an option which is not an incentive stock option is that the excess of the fair market value of the
Shares purchased upon exercise of the Option over the aggregate exercise price is considered taxable income to the Optionee in the year of exercise. Optionee represents that he or she has consulted counsel or otherwise understands the income tax
consequences of this Option. 
  
 IN WITNESS WHEREOF this Option
has been issued as of the Grant Date indicated on the Summary of Stock Option Grant. 
  
 BRE PROPERTIES, INC. 
  

 4Form of Performance Share Award

 Exhibit 10.50 
  
 BRE PROPERTIES, INC 
 PERFORMANCE STOCK AWARD AGREEMENT 
  
 THIS AGREEMENT, dated as of                     , 2004 (“Grant Date”), by and between BRE
Properties, Inc., a Maryland Corporation (“Company”), and                             
(“Employee”), is entered into as follows: 
  
 WHEREAS, the Company and Employee have entered into an employment agreement dated
                             (which, along with all amendments thereto is hereinafter referred to as
the “Employment Agreement”) which provides that, at the discretion of the Compensation Committee of the Board of Directors of the Company (“Committee”), Employee is eligible to receive long term incentive awards; 
  
 WHEREAS, the Company has established the 1999 BRE Stock Incentive Plan
(“Plan”), a copy of which has been delivered to Employee, to provide long term incentive awards; and 
  
 WHEREAS, the Committee has determined that the Employee be granted shares of the Common Stock of the Company (“Stock”) subject to the
restrictions stated below and as hereinafter set forth; 
  
 NOW, THEREFORE, the parties agree as follows: 
  
 1. Grant of Stock. Subject to the terms and conditions of this Agreement and of the Plan, the Company hereby grants to Employee Eleven Thousand
(                    ) shares of Stock (the “Grant Amount”), which represents 150% of the Target and is the maximum number of shares
to be awarded under this agreement. 
  
 2. Terms of
Vesting. The interest of the Employee in the Stock shall vest on the fifth anniversary of the Grant Date (the “Vesting Date” as it may be adjusted pursuant to subsection 2.4) in an amount equal to that percentage (the “Vesting
Percentage”) of the total Grant Amount as determined pursuant to this Section 2. 
  
 2.1. Definitions. For the purposes of this Section 2 the following terms shall have the following meaning: 
  
 (a) “FFO” shall mean Funds from Operations as is reported by BRE and the REIT Peers; provided, however, if the definition shall change or Funds
from Operations not be computed in the same manner due to changes in underlying accounting principles or their application, then the Committee may appropriately adjust the calculation of FFO to make each year’s computation comparable from year
to year. 
  
 (b) “FFO Growth” shall mean, for any year,
the percentage determined by dividing (i) the increase in the FFO per share for the year for which such determination is being made over the FFO per share for the immediately preceding year (ii) by the FFO per share for the immediately preceding
year. 

 (c) “REIT Peers” shall mean the ten largest publicly traded multi-family REITs (excluding the
Company) as designated by the Company based on total assets as determined on the first day of each of the Relevant Years; provided, however, if any of such REITs is no longer in existence as of the last date of such year, is no longer publicly
traded as of the last day of such year or if such REIT has not reported within the standard timeframe (without extension) required by the Securities and Exchange Commission, then such REIT shall not be included in the REIT Peers and the next largest
publicly traded multi-family REIT not included in the REIT Peers as determined on the first day of such year shall be included. 
  
 (d) “Relevant Years” shall mean the calendar years 2004, 2005, 2006, 2007 and 2008. 
  
 (e) “Stock Multiple” shall mean, for any year, the Stock Price as
of December 31 of the year for which such determination is being made divided by the FFO per share for such year. 
  
 (f) “Total Shareholder Return” shall mean, for any year, the percentage computed by dividing (i) the sum of the change in the Stock Price
between January 1 and December 31 of the year for which such determination is being made plus the dividends per share paid during such year by (ii) the Stock Price as of January 1 of such year. 
  
 (g) “Stock Price” shall mean the five-day average of the most
recent closing prices of the Stock or the common stock of the relevant REIT Peer, with the fifth day being the date of the determination. 
  
 (h) “Vesting Contribution” shall mean for any particular Goal, if the “Actual Goal Achievement” (as computed per subsection 2.3) is:

  
 (i) less than or equal to the Threshold, then zero,

  
 (ii) greater than the Threshold and less than or equal to the
Target, then that amount of the Weighting Factor equal to the proportion that the Actual Goal Achievement is between the Threshold and the Target and, 
  
 (iii) greater than the Target, then the Weighting Factor plus fifty percent (50%) of the amount of the Weighting Factor equal to the proportion that that
Actual Goal Achievement is between the Target and the Maximum (but in no event to exceed one hundred fifty percent of the Weighting Factor); 
  
 where the Goals, their Weighting Factor, Threshold, Target and Maximum are as set forth on Exhibit A attached hereto and made a part hereof. 
  
 2.2. Vesting Determination Date. The Vesting Percentage shall be
determined as of the Vesting Date as soon as all of the information necessary for determining the Vesting Percentage is available. If any of the information necessary for determining the Vesting 
  

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 Percentage is not available through the end of the last Relevant Year and is not expected to be available within
forty-five (45) days of the Vesting Date, then, with respect to such year (and only for that information that is not available), the year to date information available through the most recent quarter shall, if appropriate, be annualized and applied
to the computations required by this Section 2 as though such information represented the information for the full year. 
  
 2.3. Vesting Percentage Computation. The Vesting Percentage shall be computed as the sum of the Vesting Contribution for each of the Goals divided
by one hundred fifty percent (150%). An example of the Vesting Percentage Computation is attached hereto as Exhibit B. For purposes of this computation the Actual Goal Achievement for each Goal shall be computed as follows: 
  
 (a) Relative Total Shareholder Return Actual Goal Achievement shall be
computed as follows: For each of the Relevant Years the Company shall determine the percentile ranking of its Total Shareholder Return for that year in the Total Shareholder Return of the members of the REIT Peers for that year. The Relative Total
Shareholder Return Actual Goal Achievement equals the sum of such percentile rankings for each of the Relevant Years divided by the number of Relevant Years. 
  
 (b) Relative FFO Growth Actual Goal Achievement shall be computed as follows: For each of the Relevant Years, the Company shall determine the percentile
ranking of its FFO Growth for that year in the FFO Growth of the members of the REIT Peers for that year. The Relative FFO Growth Actual Goal Achievement equals the sum of such percentile rankings for each of the Relevant Years divided by the number
of Relevant Years. 
  
 (c) Relative Stock Multiple Actual Goal
Achievement shall be computed as follows: For each of the Relevant Years the Company shall determine the percentile ranking of its Stock Multiple for that year in the Stock Multiple of the members of the REIT Peers for that year. The Relative Stock
Multiple Actual Goal Achievement equals the sum of such percentile rankings for each of the Relevant Years divided by the number of Relevant Years. 
  
 2.4. Vesting Percentage Computation upon change in Employment Status. Notwithstanding subsection 2.3, if the Employee’s employment with the
Company is terminated by the employee due to death, Disability, Good Reason, retirement on or after the Retirement age (as defined in the Plan), or by the Company for other than Good Cause, the Vesting Date shall be the date of such termination and
the Vesting Percentage shall be computed by applying the formula contained in this Section 2 (including the adjustments made in subparagraphs (a), (b), (c), and (d) of this subsection 2.4.) If the Employee’s employment with the Company is
voluntarily terminated by the employee earlier than five years from the Grant Date, the Vesting Date shall be the date of such termination and the Vesting Percentage shall be computed by applying the formula contained in this Section 2 (including
the adjustments made in subparagraphs (b), (c) and (d) of this subsection 2.4 but specifically excluding the adjustment described in subparagraph 2.4(a)) and pro rating as follows: (i) zero percent (0%) if the Vesting Date is less than two years
from the Grant Date, (ii) forty percent (40%) if the Vesting Date is at least two years but less than four years from the Grant Date, and (iii) eighty percent (80%) if the Vesting Date is at least four years but less than five years from the Grant
Date. 
  

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 (a) The Weighting Factor for each Goal shall be multiplied by a fraction, the numerator of which is the
number of whole calendar quarters from January 1, 2004 through the most recent quarter ending on or before the Vesting Date (the “Employed Quarters”) and the denominator of which is 20 (the number of quarters in the Relevant Years before
taking into account the adjustment made to the definition of Relevant Years in subsection (c) below); 
  
 (b) The Relevant Years shall be those years commencing with 2004 and ending in the year in which the most recent calendar quarter on or before the
Vesting Date occurred; 
  
 (c) The number of Relevant Years shall
be the sum of the number of whole years plus the portion of the partial year, if any, expressed in quarters, in the Relevant Years as determined pursuant to this subsection 2.4; and 
  
 (d) If the final Relevant Year in such period is less than a full calendar year, then each of the computations made
pursuant to Section 2.3 shall proportionately weight the final year for its shortened period. By way of example if the Vesting Date is April 10, 2005, then the number of relevant years is 1 and 1/4th and if the Relative Total Share Return in 2004 was in the 65th percentile and, for the quarter ended March 31, 2005, the 75th
percentile on an annualized basis, then the Relative Total Share Return Actual Goal Achievement would be 67 (the sum of 65 plus 1/4th of 75 divided by 1.25 years). 
  
 2.5 Vesting
upon Change in Control. Notwithstanding subsection 2.3, upon a Change in Control (as defined in the Employment Agreement), the Vesting Date shall be the date of the Change in Control and the Vesting Percentage shall be computed by applying the
same formula contained in Section 2.4, except that there is no pro rating adjustment as set forth in Section 2.4. 
  
 2.6 Termination for Cause. If the Employee’s employment with the Company is terminated by the Company for Good Cause prior to five years from
the Grant Date, the Stock subject to the provisions of this Agreement shall be forfeited by the Employee, and ownership transferred back to the Company. 
  
 3. Restrictions Period. The Stock or rights granted hereunder may not be sold, pledged or otherwise transferred until the Stock
becomes vested in accordance with Section 2. The period of time between the date hereof and the date the Stock becomes vested is referred to herein as the “Restriction Period.” 
  
 4. Legend. All certificates representing any shares of Stock of the Company subject to the provisions of this
Agreement shall have endorsed thereon the following legend: “The shares represented by this certificate are subject to an agreement between the Corporation and the registered holder, a copy of which is on file at the principal office of this
Corporation.” 
  

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 5. Retention of Certificate. The certificate or certificates evidencing the Stock subject hereto
shall be deposited with the Secretary of the Company. The Stock may also be held in a restricted book entry account in the name of the Employee. Such certificates or such book entry shares are to be held by the Company until termination of the
Restriction Period, when they shall be released by the Company to the Employee, provided that, if the number of shares ultimately vested in Employee is different than the Grant Amount, then the certificate originally issued shall be cancelled and a
new certificate in the amount of shares vested in Employee shall be delivered to the Employee. 
  
 6. Employee Shareholder Rights. During the Restriction Period, the Employee shall have all the rights of a shareholder with respect to the Stock except for the right to transfer the Stock, as set forth in
Section 3 and except as set forth in Section 7. Accordingly, the Employee shall have the right to vote the Stock and to receive any cash dividends paid to or made with respect to the Stock. 
  
 7. Changes in Stock. In the event that as a result of (a) any stock
dividend, stock split or other change in the Stock, or (b) any merger or sale of all or substantially all of the assets or other acquisition of the Company, and by virtue of any such change the Employee shall in his/her capacity as owner of unvested
shares of Stock which have been awarded to Employee (the “Prior Stock”) be entitled to new or additional or different shares or securities, such new or additional or different shares or securities shall thereupon be considered to be
unvested Stock and shall be subject to all of the conditions and restrictions which were applicable to the Prior Stock pursuant to this Agreement. 
  
 8. Taxes. The Employee shall be liable for any and all taxes, including withholding taxes, arising out of this grant or the vesting of Stock
hereunder. The Employee may elect to satisfy such withholding tax obligation by having the Company retain Stock having a fair market value equal to the Company’s minimum withholding obligation. 
  

 5 

 9. Miscellaneous. 
  
 9.1. Transfers in Violation of Restrictions. The Company shall not be required (i) to transfer on its books
any shares of Stock which shall have been sold or transferred in violation of any of the provisions set forth in this Agreement, or (ii) to treat as owner of such shares or to accord the right to vote as such owner or to pay dividends to any
transferee to whom such shares shall have been so transferred. 
  
 9.2. Further Assurances. The parties agree to execute such further instruments and to take such action as may reasonably be necessary to carry out the intent of this Agreement. 
  
 9.3. Notices. Any notice required or permitted hereunder shall be
given in writing and shall be deemed effectively given upon delivery to the Employee at such Employee’s address then on file with the Company. 
  
 9.4. No Employment Guarantee. Neither the Plan nor this Agreement nor any provisions under either shall be construed so as to grant Employee any
right to remain in the employ of the Company. 
  
 9.5.
Arbitration. This Agreement shall be governed by the arbitration provisions of the Employment Agreement, including the provision relating to recovery of reasonable attorneys’ fees, costs, and expenses. 
  
 9.6. Entire Agreement. This Agreement, including the Plan, and the
Employment Agreement constitute the entire agreement of the parties with respect to the subject matter hereof. 
  
 9.7. Defined Terms. Terms not defined herein shall have the meaning given to them in the Employment Agreement and Plan; provided if a term is
defined in both such documents it shall have the meaning given in the Employment Agreement. 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 
  

					
	BRE PROPERTIES, INC.	 	EMPLOYEE
		
	  

	 	  

	By:	 	  

	 	  

	Its:	 	  

	 	Printed Name

  
  

 6 

 EXHBIT A 
 GOAL TABLE 
  

									
	 Goal

	  	Weighting Factor

	 	Threshold

	 	Target

	 	Maximum

	 Relative Total Share Return
	  	40%	 	40th Percentile	 	60th Percentile	 	75th Percentile
					
	 Relative FFO Growth
	  	40%	 	40th Percentile	 	60th Percentile	 	75th Percentile
					
	 Relative Stock Multiple
	  	20%	 	40th Percentile	 	60th Percentile	 	75th Percentile

  
  

 7 

 EXHIBIT B 
 EXAMPLE COMPUTATION 
  

															
	 	  	Weighting
Factor

	 	 	Actual Goal
Achievement

	  	Threshold

	  	Target

	  	Maximum

	  	Vesting
Contribution

	 
	 Relative Total Share Return
	  	40	%	 	45	  	40	  	60	  	75	  	10	%
	 Relative FFO Growth
	  	40	%	 	60	  	40	  	60	  	75	  	40	%
	 Relative Stock Multiple
	  	20	%	 	70	  	40	  	60	  	75	  	26.7	%
							
	 Vesting Percentage Computation:
	  	 	 	 	 	  	 	  	 	  	 	  	 	 
							
	 Sum of The Vesting Contributions
	  	 	 	 	 	  	 	  	 	  	 	  	76.7	%
							
	 Divided by 150%
	  	 	 	 	 	  	 	  	 	  	 	  	150	%
							
	 Vesting Percentage
	  	 	 	 	 	  	 	  	 	  	 	  	51.1	%
							
	 Initial Shares available (150% 7,333 share Target)
	  	 	 	 	 	  	 	  	 	  	 	  	11,000	 
							
	 Shares Earned
	  	 	 	 	 	  	 	  	 	  	 	  	5,621	 

  

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